1. Exide Industries: This automotive and industrial batteries manufacturer has risen 9% since announcing its Q4FY23 results on May 8, reaching its 52-week high on Wednesday. This price uptrend comes despite its net profit declining 95% YoY to Rs 181.1 crore and  revenue increasing 3.9% YoY. The street has not been deterred by the sharp drop in its profitability, as the high base last year had played spoilsport. The firm’s profit stood at Rs 3,959.2 crore in Q4FY22 due to gains made from divesting its entire share in Exide Life Insurance Co. Excluding the gains from this divestment, the firm’s consolidated profit rose 28.9% YoY in Q4FY23.

The management is optimistic about its lithium-ion battery business, as it expects to have a first-mover advantage with lithium-ion battery manufacturing in India. The company's present order book for lithium-ion battery modules and packs manufacturing stands at Rs 600-700 crore, which will be executed in the next 12-15 months. 

Subir Chakraborty, Exide Industries’ CEO, says that the company is setting up a 12 GWh (Gigawatt hours) lithium-ion cell manufacturing plant in Bengaluru for Rs 6,000 crore with its joint venture (JV) partner SVOLT Energy Solutions (one of the largest players in China). He adds that construction has already begun, and the factory will be operational by the end of FY25. 

ICICI Direct believes that the company will benefit from sourcing technology and raw materials from its JV partner. The stock also shows up in a screener for companies with broker recommendations or target price upgrades in the past three months.

2. CreditAccess Grameen: This NBFC stock rose 7.8% and reached its 52-week high of Rs 1,212.7 per share after posting an 86.4% growth in net profit in Q4FY23 on Wednesday. Its net interest income (NII) has expanded by 32.7% YoY to Rs 689.8 crore, while the net interest margin (NIM) improved by 90 bps YoY. The stock has risen 25.1% over the past month, helping it to show up in a screener of stocks that have gained more than 20% in one month.

The lender’s gross loan portfolio (GLP) stands at Rs 21,031 crore, reflecting a 26.7% YoY growth; Its asset quality has also increased, with gross and net NPAs declining by 240 bps YoY and 40 bps YoY, respectively. According to the management, the growth in its loan portfolio is supported by strong customer additions, and the addition of branches in newer geographies. The cost of borrowing for the lender has, however, increased due to rising repo rates over the past year.

Axis Securities maintains its ‘Buy’ rating on the stock, with an upgraded target price of Rs 1,315. This indicates a potential upside of 21%. The brokerage believes that the lender’s strong growth in GLP and a stable cost structure, helped by falling credit costs, will contribute to the expansion of the company’s NIM.

3. Karur Vysya Bank: This bank’s stock price has grown by 9% and is trading near its 52-week high since it posted results on Monday. Its Q4FY23 net profit increased by 58.3% YoY to Rs 337.8 crore and beat Trendlyne’s Forecaster estimates by 16%. But it missed revenue estimates by 25.1%. The bank's net interest income increased by 25.7% YoY during the same period. 

Karur Vysya Bank's gross non performing assets (NPA) fell by 376 bps YoY to 2.3% in Q4. In value terms, gross NPAs stood at Rs 1,458 crore, down from 57.5% YoY. As a result, the company features in a screener for stocks with decreasing NPAs. The bank’s total loan advances increased by 16% YoY.

Despite the decline in NPAs, its provisions doubled in Q4, indicating preparations for contingencies. Speaking about NPAs, Managing Director Ramesh Babu says that lower slippages of NPAs and a better collection system should help them keep their credit cost at 75 bps for FY24.

ICICI Securities maintains a ‘Buy’ call on Karur Vysya Bank due to its competitive advantage in terms of cost of deposits over peers, a balanced loan book, broad-based growth, and superior return ratios. According to Trendlyne’s Forecaster, the bank has a consensus recommendation of ‘Strong Buy’ from eight analysts. 

4. Amber Enterprises: This consumer electronics company surged 14% on Wednesday on the back of robust Q4FY23 results. Due to the rise in stock price, the company features in a screener of stocks with strong momentum. The company’s net profit has increased 81.7% YoY to Rs 104 crore in Q4, beating Trendlyne’s Forecaster by 46.3%. Its revenue also improved 38% YoY. As a result, it makes it to a screener of companies with increasing net profit and profit margin YoY.
   
   The strong performance can be attributed to the addition of new clients in the electronics and RAC (room air conditioner) divisions, with the RAC segment contributing 79% to the company’s total revenues. 

Commenting on the results and performance, Jasbir Singh, Chairman & CEO, says that the company’s RoCE is expected to improve from 15% in FY23 to 19-21% in the next few years. 

Amber Enterprises’ management is targeting to deliver a growth of 10-15% in the core RAC business in FY24, while anticipating growth rates of 35-40%, 20-25% and 15-20% respectively for the electronics, motors and mobility divisions. However, they also expect a muted performance in Q1FY24 due to unseasonal rains in North India.

Following the results, BoB Capital maintains its ‘Hold’ rating but raises the target price to Rs 2,260. The brokerage anticipates better growth in the company’s new verticals but remains cautious of high competition, and the impact of unseasonal rains on the AC business. 

5. Ceat Ltd: The auto tyres and rubber products firm has seen its share price increase by 33.9% in the past month, while the broader Nifty Auto index saw a 5.9% rise. The firm reported an 11% YoY increase in its revenue, led by the replacement market. It also saw strong demand in export and OEM markets. A stronger dollar has also added to the top line. Ceat is expanding into off-road, truck, and bus tyres in the US, Canada and South America, in addition to its existing European market. Ceat tyres will be categorised under the mid-premium category in the US.  Currently, the export market contributes 18% of the revenue.

The firm has witnessed a margin expansion of 553 bps YoY to 13.1%, from lower raw material costs (which were 9% lower) and a better product mix. The firm has increased its market share in the passenger car radial segment from 13.4% in Q3FY23 to 14.2% in Q4FY23. Strong CV and PV markets are expected to drive the firm’s top line in FY24. Ceat shows up in a screener for stocks with strong momentum and price above short-term and long-term moving averages.

The firm has a planned capex of Rs 700 crore towards agri-radial tyres and other downstream products. The management is positive about volume growth in off-highway tyres and margin expansion led by speciality tyres.

Prabhudas Lilladher says that the margin expansion has been led by lower raw material costs; however, margins are expected to moderate once the benefits of lower input costs are passed on to end customers. Ceat expects to see a better replacement market and export mix in FY24. 

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