Bata India, Graphite India, Page Industries, United Breweries hit new high

Shares of companies that posted a robust earnings growth during April-June (Q1FY19) quarter have gained, with Bata India, Graphite India, Page Industries, Pfizer, United Breweries and Vinati Organics hitting their respective new highs on the BSE on Tuesday.

Infosys, JSW Steel, Infibeam Corporation, GMM Pfaudler, International Paper APPM, Lumax Auto Technologies and TCI Express from the S&P BSE 500 and S&P BSE Smallcap index also touched their all-time highs value in the intra-day trade.

Vinati Organics was up 5% to Rs 1,395, extending its 38% rally in the past seven trading sessions as the company’s net profit more-than-doubled in Q1FY19.

The company, which is engaged in commodity chemicals business, had posted a net profit of Rs 643 million in June quarter against Rs 311 million in the same quarter last fiscal. Gross revenue from operations increased 34% at Rs 2,647 million against Rs 1,969 million in the corresponding quarter of previous fiscal. EBIDTA (Earnings before interest, tax, depreciation, and amortization) margin improved from 25.5% in Q1FY18 to 34.6% in Q1FY19.

Page Industries too rallied 5% to Rs 34,011 in intra-day trade, gaining 16% in past six trading days. The company which manufactures, markets, and distributes garments and clothing accessories under the Jockey brand name in India reported a better-than-expected 46% YoY growth in net profit at Rs 1.24 billion in Q1FY19. It had a profit of Rs 853 million in the same quarter year ago.

Bata India, too, hit a new high of Rs 1,006, up 3% on the BSE. The stock of footwear Company surges 22% in past one month, as compared to 3.5% rise in the S&P BSE Sensex.

For 1QFY2019, Bata India posted a strong set of numbers, with revenues up by 8% YoY at Rs 7.97 billion and 37% YoY jumped in net profit at Rs 830 million. The company’s operating margins improved by robust 355 bps yoy.

Last month the GST Council 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%).

An analyst at Angel Broking expects Bata India to report net revenue CAGR of around 16% to Rs 35.55 billion over FY2018-20E mainly due to increasing brand consciousness among Indian consumers, new product launches, higher number of store additions in tier II/ III cities and focus on high growth women’s segment.

“Further, on the bottom-line front, we expect CAGR of around 21% to Rs 3.23 billion over the same period on the back of margin improvement (increasing premium product sales),” the brokerage firm said will maintain ‘buy’ rating on stock and 12-month target price of Rs 955 per share.

Graphite India hit a new high of Rs 1,126, up 3%, gaining 17% in past one month. The graphite electrode manufacturer had posted a stellar set of numbers by positing consolidated net profit of Rs 9.56 billion in Q1FY19 against Rs 300 million in Q1FY18. Strong demand for graphite electrodes from the EAF steelmaking route amid supply constraints has led to a sharp increase in graphite electrodes prices, thereby resulting in healthy profitability.

BATA INDIA 1002.20 1005.85 987.00 13-Aug-18
GMM PFAUDLER 1027.80 1057.95 1057.00 10-Aug-18
GRAPHITE INDIA 1113.80 1126.40 1125.45 10-Aug-18
INFIBEAM INCORP. 196.45 198.55 197.65 13-Aug-18
INFOSYS 1409.25 1417.85 1411.00 13-Aug-18
INTERNAT. PAPER 466.85 477.20 474.20 13-Aug-18
JSW STEEL 347.40 347.95 346.40 07-Jun-18
LUMAX AUTO TECH. 210.25 211.25 204.50 13-Aug-18
PAGE INDUSTRIES 33872.65 34011.35 32750.00 09-Aug-18
PFIZER 2879.75 2883.85 2845.00 13-Aug-18
TCI EXPRESS 726.80 735.00 731.10 07-Aug-18
UNITED BREWERIES 1316.10 1325.00 1320.25 13-Aug-18
VINATI ORGANICS 1387.10 1395.30 1340.00 13-Aug-18