Mayuresh Joshi, Head-Equity Research at William O'Neil India, said Kirloskar Oil Engines Ltd and Indigo Paints Ltd could be two fundamental bets. Joshi on Friday told BT TV that Kirloskar Oil Engines posted strong numbers in the first quarter of the current financial year (Q1 FY24). "Topline growth of Rs 1,500 crore in the first quarter came much better than the Street expectation. Bottomline growth has been substantial. Q1 numbers were strong and the second half is expected to be more substantial," he stated.
Joshi also mentioned that the power-generating set manufacturer's net debt stood very minimal for the quarter. "Buy for a target price of Rs 500, keeping a stop loss placed at Rs 418-420," he suggested. The stock was last seen trading 7.63 per cent higher at Rs 474.80 today.
For Indigo Paints, he said the first quarter is normally considered soft but for this company, it has turned out to be extremely strong.
"The company has non-substantial debt. Topline growth was significantly higher. EBITDA margins are expected to remain stable or improve going further," Joshi stated.
Indigo Paints recorded a 58.26 per cent growth in its net consolidated profit for the June quarter. The company's profit after tax for Q1 FY24 reached Rs 31.51 crore, marking a significant increase compared to the Rs 19.91 crore recorded in the corresponding quarter last year.
The counter was down 0.68 per cent today to trade at Rs 1,556.05 over its previous close of Rs 1,566.65.
Meanwhile, Indian equity benchmarks traded lower, dragged by pharma, financial, bank, consumer goods and metal stocks. Mid- and small-cap shares were up as Nifty Midcap 100 rose 0.09 per cent and small-cap climbed 0.31 per cent.
Asian markets were subdued. Overnight, Wall Street equities edged higher after data showed that US consumer price inflation moderated in July, bolstering hopes that the US Federal Reserve is near the end of its rate-hiking cycle.
Back home, foreign institutional investors (FIIs) bought Indian equities for the second straight session in the previous session, adding Rs 331 crore of shares, while domestic institutional investors (DIIs) bought Rs 704 crore of equities.
10 out of the 15 sector gauges -- compiled by the National Stock Exchange -- were trading in the red. Sub-indexes Nifty Pharma, Nifty Financial Services, Nifty Bank, Nifty FMCG and Nifty Metal were underperforming the NSE platform by falling as much as 1.01 per cent, 0.41 per cent, 0.47 per cent, 0.47 per cent and 0.74 per cent, respectively.
On the stock-specific front, SBI Life was the top loser in the Nifty pack as the stock cracked 1.30 per cent to trade at Rs 1,317. Hero MotoCorp, Hindalco, JSW Steel and ICICI Bank fell up to 1.29 per cent.
In contrast, HCL Tech, Apollo Hospitals, PowerGrid, Titan and Grasim Industries were among the top gainers.
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