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Profit, sales growth for 4 straight quarters! 23 stocks that fit the bill

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When Dalal Street was busy talking earnings revival, Tata Motors delivered a shock with its record loss for December quarter.

But as many as 23 companies on BSE managed to beat all the hiccups and reported both top line and bottom line expansion for the fourth straight quarter since the third quarter of 2017.

From the Sensex pack, oil-to-telecom behemoth Reliance Industries (RIL) reported an 8.8 per cent year-on-year growth in December quarter profit at Rs 10,251 crore compared with Rs 9,516 crore in Q2FY19, Rs 9,459 crore in Q1FY19, Rs 9,435 crore in Q4FY18 and Rs 9,420 crore in Q3FY18. Net sales, too, grew on a quarter-on-quarter basis through this period.

Brokerage Elara Capital has an ‘accumulate’ rating on RIL with a price target of Rs 1,333. The stock was hovering around Rs 1,230 on February 14.

Software major Tata Consultancy Services, too, have been posting steady profit growth over the past few quarters. The bottom line stood at Rs 8,105 crore in Q3FY19, Rs 7,901 crore in Q2FY19, Rs 7,340 crore in Q1FY19, Rs 6,904 crore in Q4FY18 and Rs 6,531 crore in Q3FY18.

BoB Capital Markets has a ‘buy’ rarting on TCS with a price target of Rs 2,390. Shares of the IT firm traded at Rs 2,055 on Thursday.

IT player HCL Technologies and NBFC Bajaj Finance, mortgage lender LIC Housing Finance, gas distributor Indraprastha Gas were some of the other companies that have seen steady growth in sales and profit over the past four consecutive quarters.

Others on the list include MphasiS, RBL Bank, Teamlease Services, Manappuram Finance, Sterlite Technologies, Phillips Carbon Black, DCB Bank, Ganesha Ecosphere, IOL Chemicals & Pharma and Kennametal India.

Geojit Financial Services has ‘hold’ ratings on MphasiS and LIC Housing Finance with a target price of Rs 1,134 and Rs 480, respectively.

Ganesha Ecosphere is engaged in the manufacture of recycled polyester staple fibre (RPSF) and recycled polyester spun yarn (RPSY) from pre and post-consumer polyethylene terephthalate (PET) bottle scrap. The company reported 56 per cent YoY rise in net profit at Rs 14.40 crore for Q3FY19 on a 47.10 per cent YoY increase in net sales at Rs 265.10 crore.

Emkay Global is positive on Sterlite with a 12-month target price of Rs 520. IOL Chemicals reported 834.50 per cent year-on-year (YoY) rise in Q3FY19 net profit and over 82 per cent jump in net sales. Kennametal India, Stylam Industries, Transpek Industry, and SRG Housing Finance posted over 100 per cent YoY rise in net profit during the quarter under review.

Mastek, Bharat Gears, Transpek Industry, GMM Pfaudler, Stylam Industries, Hester Biosciences, and SRG Housing Finance were the other names on the list.

GMM Pfaudler has been seeing good growth in user industries such as agrochemicals and pharmaceuticals, which are seeing robust capex owing to slowdown in China, according to Angel Broking. The company posted 48 per cent YoY rise in net profit and 33 per cent expansion in net sales in Q3FY19.

Angel Broking has an ‘accumulate’ rating on GMM Pfaudler with a 12-month price target of Rs 1,200.

Source: Economic Times