1. Federal Bank: This private bank’s stock rose 21.8% over the past month till Thursday. It also outperformed the banking industry over the past 90 days by 11.3%. The latest upmove in the stock started after the bank released its business update on July 3. The company’s gross advances grew 16.3% YoY to Rs 1.5 lakh core and total deposits by 8.2% YoY to Rs 1.8 lakh crore in Q1FY23. This was a precursor to its good Q1FY23 results as after announcing its results on July 15, the scrip rose 8.5% on the bourses. The bank’s net profit rose 63.5% YoY to Rs 600.7 crore and revenue rose 8.1% YoY to Rs 3,628.9 crore. It beat Trendlyne’s Forecaster profit estimates by 19.6%. The bank shows up on this screener of companies with rising profits for four consecutive quarters.

The bank’s management expects 18% credit growth in FY23 and healthy business traction and diversification to aid profitability. The expansion into high-yield segments such as commercial vehicle loans, construction equipment loans, personal loans, and credit cards is expected to contribute to profit growth. The bank also expects its asset quality to remain stable, with the NIM improving by 5-7 bps from 3.22% to 3.25%-3.27% by the end of FY23. 

2. Tube Investments of India: This auto parts & equipment maker’s stock rose 12.3% on Tuesday after it announced that its arm TI Clean Mobility (TICMPL) acquired a 65.2% stake in IPLTech Electric in an all-cash deal worth Rs 246 crore. IPLTech Electric makes and sells electric heavy commercial vehicles. The company expects this acquisition to expand its footprint in the electric vehicle space. TICMPL has existing interests in the manufacturing of electric three-wheelers and electric tractors through its subsidiary Cellestial E-Mobility. The management plans to launch its first electric three-wheeler and tractor in FY23.

Over the past week, the stock rose over 10.1% till Thursday and outperformed the Nifty 50 index in the same time period. 

In FY22, Tube Investments’ revenue grew 105.9% YoY to Rs 12,525.3 crore and net profit grew 168.5% YoY to Rs 768.8 crore driven by the engineering and industrial systems segment. All the business verticals of the company grew, thanks to total exports growing 98% YoY, according to Motilal Oswal. To push exports the company is developing strategic partnerships with original equipment manufacturers and distributor channels. The US and EU nations are its major export markets. The company expects growth in the domestic market in the coming years and expects production-linked schemes (PLI) for auto parts to boost the industry. However, Trendlyne’s Forecaster shows the company’s revenue falling 25.2% YoY to Rs 1,823.6 crore in Q1FY23.

3. Havells India: This consumer durables company’s Q1FY23 result was a mixed bag. Its Q1FY23 revenue rose 62.6% YoY to Rs 4,244.5 crore, beating Trendlyne’s Forecaster estimates by 5.9%. But high raw material costs hurt net profit, which rose only 3.1% YoY, missing Forecaster estimates by 26%. The stock gained over 12.6% in the past two weeks ahead of its results. With the sharp rise in its share price, Havells features in the screener that lists stocks that are overbought by the money flow index or MFI.

In the post-earnings call, Havells India’s Chairman and Managing Director Anil Rai Gupta said that volatile commodity prices impacted the margins in Q1FY23. He added that the recent moderation in prices could reflect in the next two quarters. High raw material costs put pressure on the operating profit margin, which fell 5.1 percentage points YoY to 8.5% in Q1FY23.

In addition to the raw material costs, advertisement and sales promotion costs jumped 2.5X YoY to Rs 113.4 crore in Q1FY23, which impacted profits from the company’s subsidiary Lloyd. Havells had acquired Lloyds in 2017 to foray into the air conditioning segment. Lloyd, which constitutes over 25% of total revenue, posted strong revenue growth of 119% YoY to Rs 1,084 crore in Q1FY23. However, it posted a loss of Rs 56 crore before tax on the back of high advertising and sales promotion expenses due to intense competition in the air conditioning space. 

4. Bharat Electronics: This defence equipment makers’ stock touched an all-time high of Rs 242.2 in the first week of April as the Centre moved to indigenise production of certain items like weapons, equipment, etc. This could benefit defense public sector companies like Bharat Electronics. Its stock is trading up 6% in the last 90 days and also outperformed its industry by 1.2% in the past 90 days. 

The company’s stock touched an all-time high on Monday of Rs 260.8 when it announced its Q1FY23 results. Its net profit zoomed 15X YoY on a low base to Rs 365.5 crore. It also sees a 90.5% rise in revenues to Rs 3,140 crore, much more than the ICICI Securities’ estimates. Revenue numbers beat Trendlyne’s Forecaster estimates by 43.7%. 

Since Monday the stock has been rising. It also shows up in this screener where the companies which announced their results with rising operating profit margin and net profit growth. ICICI Securities maintains a ‘Buy’ stance on its robust order book and its foray into non-defence segments and increasing exports. The company’s order book stands at Rs 55,333 crore as on July 1. Orders came in not only from the defence segments (arms and ammunition) but also from other non-defence sectors like medical electronic devices and manufacturing electronic products for civil aviation, railways and metros. 

5. Wipro: This IT services company’s stock hit a 52-week low of Rs 391 on July 15 after Q1FY23 results of its peers like HCL Technologies and Tata Consultancy Services showed that the industry might be facing cost pressures and revenue growth related headwinds. Investors were relieved when Wipro’s stock traded higher for the last three consecutive sessions, but it fell on Thursday after its Q1FY23 results showed a 17% fall in its net profit to Rs 2,563.6 crore This led to Wipro entering this screener of companies which reported a QoQ and YoY decline in net profit. It has also underperformed its industry by 12.5% over the past 90 days.

The company’s management is confident that its clients aren’t planning cuts in technology spends, and does not anticipate any demand slowdown. However, since Wipro’s major business comes from consulting, and given a weak macro environment, this segment is likely to see headwinds. According to a report from ICICI Securities, its capital allocation into the consulting business is already seeing problems because of high investments made. This could impact overall earnings in FY23.

Trendlyne's analysts identify stocks that are seeing interesting price movement, analyst calls, or new developments. These are not buy recommendations.