1. Computer Age Management Services:

This capital markets company has risen by 19.2% in the past week, touching its 52-week high of Rs 2,890 per share on Thursday. In Q2FY24, it posted a 17.1% YoY growth in net profit to Rs 84.5 crore and a 13.5% YoY increase in revenue to Rs 275.1 crore, in line with Trendlyne’s Forecaster estimates. The company appears in screeners of stocks with increasing revenue and net profit over the past four quarters.

The stock’s EBITDA margin has expanded by 150 bps YoY to 58%, aided by improved operational leverage, as its expenses grew more slowly than the revenue. The company’s revenue increased on the back of growth in client additions, transaction volumes, and the SIP book. The company’s assets under management (AUM) also rose by 20.3% YoY, owing to growing interest in mutual funds among retail investors. 

Commenting on the performance, Anuj Kumar, the Managing Director of the company, said, “Our overall assets under service touched a lifetime high of Rs.32.6 lakh crore, and our mutual fund market share is steady at 68.5%. Equity assets grew by 28% YoY on the back of rising share in equity sales alongside steady market movement.”

Post results, Motilal Oswal Financial Services maintains its ‘Buy’ rating on the stock with a target price of Rs 2,950 per share. This indicates a potential upside of 4.1%. The brokerage believes that the company’s mutual fund segment will deliver strong growth in AUM in the long term. It also foresees favourable macro triggers and investments in the non-mutual fund segment boosting revenue growth. It expects the company’s net profit to grow at a CAGR of 13.5% over FY23-25.

2. Eicher Motors:

This automobile manufacturer hit its 52-week high of Rs 3,898 on Friday, marking a 9.1% rise over the past week. The price rise followed the announcement of its Q2FY24 financial results. The company’s net profit has increased by 54.7% YoY to Rs 1,016.2 crore, beating Trendlyne Forecaster’s estimate by 3.7%. It also reported its highest-ever revenue from operations of Rs 4,388.3 crore, a 19.6% YoY increase. In Q2FY24, Royal Enfield registered its highest wholesale performance with close to 2,29,500 motorcycles sold, while VECV also recorded its highest sales of 19,551 units. 

Despite the introduction of premium motorcycles by competitors like Bajaj Auto and Hero Motocorp, in collaboration with international brands Triumph and Harley Davidson respectively, Eicher Motors’  management says that it is confident about their position in the >250cc motorcycle segment. 

In the past month, Royal Enfield launched the new Himalayan 450 and an updated Bullet with a J-series engine. Managing Director Siddhartha Lal said, “Both motorcycles have spurred immense consumer interest across the world.” The management believes that the new Himalayan has the potential to become a “game-changer” in the export market, where it currently maintains its market share (8% in America, 9% in Europe and 9% in EMEA) despite a declining industry trend. 

Eicher Motors is also venturing into electric mobility, having presented an electric motorcycle concept based on the Himalayan Testbed. In addition, VECV has begun delivering electric buses to customers and signed MoUs with leading e-commerce and mobility firms for the supply of over 1000 electric trucks and buses. 

Axis Direct maintains its ‘Buy’ call on Eicher Motors on the back of its strong quarterly performance and new launches, but remains cautious in the face of increasing competition. The company also appears in a screener for stocks with recommendations or target price upgrades by brokers.

3. Manappuram Finance: 

This banking and finance company has risen by over 11.2% in the past week, touching a new 52-week high on Thursday. This rise follows its Q2FY24 net profit increasing by 20.4% YoY to Rs 419.9 crore, beating Trendlyne’s Forecaster estimates by 7%. The rise in share price places the company in a screener of stocks with prices above their short, medium and long-term moving averages. The company’s revenue has also increased by 16.5%, driven by its gold loan and microfinance segments. 

The strong performance is led by robust growth in the company’s AUM (up 27% YoY) and net interest income or NII (up 26% YoY). The AUM for the quarter increased by 27% to Rs 38,950 crore, driven by healthy growth in the MFI (microfinance institution), vehicles, and housing segments. Further, its gold loan AUM (which constitutes 53% of the total AUM) expanded by 8% YoY. VP Nandakumar, the Managing Director, said, “The share of non-gold vertical in our total AUM is now at 47%, in line with our objective of achieving a 50-50 portfolio between gold and non-gold verticals.” The company has guided for a gold loan growth of 8-10% YoY in FY24 and is focused on maintaining pricing discipline in gold loans despite high competition. 

Following the results, Axis Securities maintains its ‘Buy’ rating, with a target price of Rs 160. The brokerage believes Manappuram Finance is well-positioned to continue its growth momentum as it focuses on growing its AUM with a sustainable diversified mix, maintaining its stable asset quality. 

4. Power Finance Corporation:

This banking and finance company has risen by 14.1% over the past week till Friday, led by its stellar Q2FY24 earnings released on November 8. The stock outperformed the benchmark Nifty Financial Services by 13.7% during the same period. The company’s net profit rose by 27% YoY to Rs 3,847 crore and revenue grew by 16% YoY to Rs 17,964 crore. The top-line growth was driven by an increase in lending in the energy transition segment. The company beat Trendlyne Forecaster’s net profit estimates by 24%. 

According to the management, the company has been able to maintain its market share of 25% in the renewable energy segment due to a sharp rise in disbursals. It noted that the renewable energy space alone has seen a 37% YoY growth in disbursals compared to H1FY23. The company's total disbursals surged by 150% YoY, from Rs 21,790 crore in H1FY23 to Rs 55,562 crore in H1FY24, due to increased lending to renewable energy projects. Higher recoveries and improved diligence in loan disbursals have led to a 98 bps fall in the firm’s Gross NPAs (bad loans) from 4.38% in H1FY23 to 3.4% in H1FY24.

“In the medium to long term, we see existing business to be complemented by opportunities in energy transition and E-mobility,” noted its CMD Parminder Chopra. The firm is looking to maintain its leadership in lending to renewable energy projects, especially in the North Eastern region of India. In the present quarter, the firm has also forayed into airport funding projects, diversifying its revenue sources further.

5. NTPC: 

This electric utilities firm rose 5.7% in the past week following the announcement of its Q2FY24 results. The company’s net profits improved by 38.2% YoY, while its revenue only saw a marginal increase of 1.8% YoY due to lower income from the generation segment. According to Trendlyne’s Technicals, the stock has risen by 15.7% in the past three months. 

The company’s EBITDA margins have expanded by 260 bps on account of lower fuel expenses. In H1FY24, NTPC increased its total capacity by 5.1% YoY, with the majority of it in thermal capacity. This will help the company manage inconsistencies in renewable energy production.

The company has set a capex target of Rs 28,400 crore for FY24, with around 47% of it already utilised in the first half. The stock appears in a screener of companies with improving quarterly net profit and profit margins.

NTPC has also reduced its reliance on imported coal, with production from its captive mines rising by 29.4% YoY and imports dropping by 50% YoY. Despite a 3.4% YoY decrease in average tariff from April to September 2023, the firm offset it by increasing its electricity generation by 5.6% YoY in Q2FY24.

BOB Capital says that the company's strategic shift towards renewable energy makes it a solid player in the green energy sector. Due to this diversification, the brokerage believes that the company is well-positioned in the power generation space. It maintains a ‘Buy’ rating on the stock.

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