Stocks That Yielded Good Returns despite Declined PAT

Overall, the last quarter was a mixed bag for India Inc. with some companies meeting market expectations while others posted earnings below or above what markets expected. Despite huge drops in bottom lines for the second quarter ended September 30 2016, few stocks from different sectors of the NSE basket have given double-digit returns during the ongoing quarter.

Here is a look at the Top 10 companies whose shares rallied despite a decline in net profit during the quarter ended September 30, 2016.

Infra

Hindustan Construction (HCC): HCC share price gained 11 per cent to Rs 39 till December 13 from Rs 34 on September 30. For the latest quarter ended September 30, the company posted 40 per cent decline in net profit at Rs 23.08 crore against Rs 38.44 crore in the same quarter last year. HCC is the top 500 recommendation for the quarter by Dynamic Levels.

On 3rd November 2016, HCC in joint Venture with Laxmi Civil Engineering Services had bagged the Rs. 374.6 crores contract by Narmada Valley Development Authority for the construction of Bistan Lift irrigation Acheme on Turnkey basis. Also on 2nd December HCC board had approved the issuance of 25,19.92,670 equity shares of face value Re. 1 representing 24.44 per cent of the expanded share capital of the company and Optionally Covertible debentures of face value Rs. 1000 each not exceeding Rs. 2000 crores on the preferential basis to the lenders.

Adani Transmission: The Consolidated Net profit of the company declined 38.63 per cent year-on-year to Rs 99.54 crore for the quarter under review. It had reported the consolidated net profit of Rs 152.90 crore in the same quarter last financial year. So far, Adani Transmissions share pricehave jumped 47 per cent to Rs 56.35 till December 13 from Rs 38.15 on September 30. Adani Transmissions have been picked among the top 500 performing stocks for the quarter by Dynamic Levels.

On 7th December, Adani Transmissions had executed the share purchase Agreement with reliance Infrastructures for the 100 per cent acquisition of R-Infra’s WRSSS Transmission Assets of 3100 Circuit Kilometers. The Enterprise value of WRSSS Transmission Business is Rs. 1000 crores.

Metals and Mining

Tata Steel: Tata Steel posted a net loss of Rs 49.38 crore for the quarter ended September 30, 2016 as compared to a net profit of Rs 5,609.43 crore reported for the same quarter last financial year. However, Tata Steel share price had gained nearly 13 per cent to close at Rs. 421.10 on December 13th against Rs 374.25 on September 30.

Hindustan Zinc: Net profit of Hindustan Zinc declined 15.41 per cent on a year-on-year basis to Rs 1,901.87 crore for the quarter under review. Despite the decline in net profit, Hindustan Zinc share priceadvanced 19 per cent to Rs 278.15 till December 13 from Rs 233.35 on September 30. On a year-to-date basis, Hindustan Zinc share price have surged 95 per cent till date, whereas Nifty share price has advanced 7 per cent during the same period.

On 7th November, Hindustan Zinc had paid the interim dividend of 95 per cent on each share of face value Rs. 2.

MOIL: MOIL has posted a declined net profit of around 15 per cent year on year to Rs 41.47 crore in Q2FY17 from Rs 48.56 crore in Q2FY16. Yet, Moil share pricesoared nearly 45 per cent in the ongoing quarter till December 13. The scrip jumped from Rs 246.45 on September 30 to Rs 357.80 till date. Moil is the top 500 performing stock as recommended by Dynamic Levels for the quarter.

Textiles and Apparels:

Welspun India: Due to the issues over Egyptian cotton, Welspun India reported a loss of Rs. 152.34 crore for the quarter ended September 30, 2016 against Rs 136.60 crore reported for the same quarter last year. Despite posting losses for Q2, Welspun India share price advanced 29 per cent to Rs 67.70 on December 13 from Rs 52.50 on September 30, 2016. Welspun India is identified as top 500 stocks by Dynamic Levels for the quarter.

On August 25, 2016, Credit Analysis and Research (CARE) ltd had reviewed the credit rating of Welspun India by placing it under credit watch. On December 5th CARE Limited had maintained the credit ratings by removing it from the credit watch. Welspun India holds CARE AA- for its long term bank facilities, CARE A1+ for short term bank facilities and for its commercial paper as well.

Pharma

Bliss GVS Pharma: Bliss GVS share price soared over 20 per cent in the third quarter of the ongoing financial year. The scrip jumped from Rs 137.60 on September 30 to Rs 167.75 on December 13th. For July-Sept period, the company posted consolidated net profit of Rs 13.65 crore against Rs 23.04 crore in the same quarter last year. In the ongoing quarter, its step down subsidiary has bagged a three year contract worth $111.40 million from Aon Kenya Insurance Brokers for provision of Medical Health. Bliss GVS is also a top 500 performing stock for the quarter as identified by Dynamic Levels website.

On 22nd November, Bliss GVS Healthcare, the step down subsidiary of Bliss GVS has won a three year contract worth USD 111.40 million from Aon Kenya Insurance Brokers Ltd. for medical healthcare services in Kenya.

Energy

Aban Offshore: The Company reported 560 per cent year-on-year fall in the bottom line figure for the quarter ended September 30, 2016. It posted a consolidated net loss of Rs 274.74 crore against a net profit of Rs 124.45 crore reported for the same quarter of last financial year. Since the beginning of this quarter, Aban share price have climbed 30 per cent to Rs 254.55 till December 13. It is also the top 500 recommended stock for the quarter by Dynamic Levels.

Fertilizers

GSFC: In the Q2FY17, GSFC has posted the net profit of Rs. 125.01 crores in the Q2FY17as compared to Rs. 142.64 crores in the Q2FY16, witnessing over 12 per cent decline. Despite that, GSFC share price has gained 16 per cent, rising from Rs. 76.20 on September 30th to Rs. 88.40 on December 13th. GSFC is the Multibagger stock for the month according to Dynamic Levels.

Chambal Fertilizers: The Company has posted a PAT of Rs. 127.11 in the September quarter of the ongoing financial year as compared to the PAT of Rs. 137.45 in the Q2FY16. However Chambal fertilizers share price has advanced 22 per cent from the price of Rs. 58.25 on September 30 to Rs. 71 on December 13th. Chambal Fertilizers is the top 500 recommendation by Dynamic Levels for the quarter.

These stocks are worth keeping an eye on, if you are looking for double digit returns without worrying about their quarter performances.

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