Federal Bank: This bank’s stock is rising ahead of its Q2FY22 results. In one week, the stock is up by nearly 6%, outperforming the Nifty50 and the Nifty Bank. The bank's operational numbers improved in the quarter. Its loan disbursed increased by 9% YoY and total customer deposits by 8% with a healthy liquidity coverage ratio of 1.2 in Q2FY22. Investor Rakesh Jhunjhunwala also increased his stake in the bank to 3.7% from 2.8%.
Cadila Healthcare: Mutual funds aren’t thrilled about this pharma company despite its Covid-19 vaccine for children being rolled out soon. In each month of Q2FY22, mutual funds were net sellers of the company’s stock, selling 1.1 crore shares or 18% of their holding. Mutual funds lowered their stake in the company to 4.7% in Q2FY22 from 5.8% in Q1FY22. Their pessimism on the stock is reflected in the price, as the vaccine maker’s stock fell by nearly 14% in Q2.
Avenue Supermarts: Brokerages are not too upbeat despite this supermarket operator’s positive Q2 results. In Q2FY22, the company’s revenues grew by 45% YoY, with a two-fold increase in net profits. Despite this two brokerages — HDFC Securities and Axis Direct maintained their ‘Sell’ rating on the stock. Brokerages cautioned against the high valuations of the stock at 212 trailing 12-month price to earnings (PE) ratio, against a three year average PE of 132. After surging past the Rs 5,300 levels, the stock is down by 15% in one week.
Devyani International: This franchise operator of Yum! Brands (which includes KFC India and Pizza Hut) is outperforming peers and the benchmark index. In a volatile week, where the Nifty50 fell by 1%, the stock is up by 8%. The stock of its peers — Jubilant Foodworks (master franchisee of Domino’s Pizza), Westlife Development (master franchisee of McDonald’s in south and west India), and Burger King India have declined this past week. In FY21, the company made its third consecutive net loss of Rs 63 crore and expects to break even only in FY23.
Ashoka Buildcon: This infrastructure company’s stock price is on a tear but its valuations remain cheap. In one month, the stock is up by nearly 20%. This puts it among the top three highest gainers among infrastructure stocks within one month. It remains the most cheaply valued mid-cap infrastructure company with a trailing 12 month (TTM) price to earnings (PE) ratio of 8.3 times, compared to a three-year average PE of 14.9, putting it in the buy zone.