Asian Paints, Havells India, Bata India, Bajaj Finance, HEG hit new high

Shares of Asian Paints, Havells India, Bata India, Bajaj Finance and HEG were among 10 stocks from the S&P BSE 500 index hitting their respective new highs on the BSE on Monday.

Bajaj Finserv, Berger Paints, Graphite India, Relaxo Footwear and Procter & Gamble Hygiene & Healthcare too hit record highs today.

Havells India, the largest gainer among the pack, has rallied 9% to Rs 613, after the company posted a better-than-estimated performance in the June quarter (Q1FY19) led by higher margin in Cable & Wire and Electrical Consumer Durable (ECD) segments.

The company's net profit zoomed by 73% year on year (YoY) to Rs 2.1 billion, revenue surged by 31% YoY to Rs 26.0 billion mainly driven by impressive YoY performance of Lloyd. EBITDA margin expanded 333bps yoy to 12.0% mainly led by higher margin in ECD segment and Cable & Wire segment.

“With the acquisition of Lloyd, Havells has forayed into US$ 15 billion consumer durable industry, and we continue to remain optimistic on the growth potential on the back of low penetration, rising urbanisation and rising middle class. We maintain our BUY recommendation on the stock with an unrevised Target Price of Rs 650, valuing it at 38x FY20E earnings,” Reliance Securities said in result update.

Bajaj Finance (up 2.6% at Rs 2,792) and Bajaj Finserv (up 2.7% at Rs 6,850), have gained up 12% in past one week after these companies reported a strong set of numbers for Q1FY19.

“The growth prospects remain strong as Bajaj Finance adds new lines of businesses, even though profitability may have some variance. We think that at P/B of 6x FY20 and PE of 30x, valuations have become premium. At our target price of Rs 2,500, there is no upside – hence we downgrade to Neutral. Risk to our rating change essentially remains from continued multiple expansion,” analysts at Motilal Oswal Securities said in result update.

Bata India (Rs 895) and Relaxo Footwears (Rs 815) have surged 6% in intra-day trade after the GST Council on Saturday reduced tax rates on footwear priced up to Rs 1,000 to 5% from 18% (earlier, footwear priced up to Rs 500 used to attract GST at 5%).

COMPANY LATEST ALL TIME HIGH PREV HIGH PREV DATE
ASIAN PAINTS 1427.75 1465.10 1408.00 19-Jul-18
BAJAJ FIN. 2758.65 2791.85 2744.95 20-Jul-18
BAJAJ FINSERV 6829.10 6849.90 6776.35 20-Jul-18
BATA INDIA 887.00 894.80 864.95 02-Jul-18
BERGER PAINTS 309.45 322.00 318.85 18-Jul-18
GRAPHITE INDIA 1012.00 1028.00 1027.00 10-Jul-18
HAVELLS INDIA 608.00 613.20 592.70 29-Jan-18
HEG 4093.35 4185.00 4145.00 20-Jul-18
P & G HYGIENE 10598.95 11000.00 10965.40 17-Jul-18
RELAXO FOOTWEAR 799.00 815.00 812.00 19-Jun-18


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