BSE 500 shares: Profit margins of 7 cos BSE500 up for 4 consecutive quarters! Here’s how their stocks fared

NEW DELHI: A total of seven BSE500 companies (excluding banking and financial services) reported improved after-tax (PAT) profit margins for four consecutive quarters. So far, five of these stocks have managed to match or better BSE Sensex’s flat returns in 2022.

Shares of The

The company has climbed 64.17% this year to Rs 296.50 apiece from Rs 180.60 apiece on December 31. This company’s profit margin was 13.2% in the June quarter, an improvement from 9.14% in March, 7.76% in December, a negative 16.24% in September (deficit ) and a negative of 78.37% a year ago.

Domestic travel demand is rebounding strongly while international travel is lagging,

said, adding that with the recovery of inbound foreign travelers coupled with resilient domestic demand, H2FY23 should be significantly better for hospitality businesses.

“The hospitality sector is poised to continue its robust growth momentum over the coming quarters, driven by an expected strong recovery in international travel and improving MICE activity,” he said while suggesting a target of Rs 320 for IH.

Once avoided,

is now a sought after stock. The certificate soared by 56.93% to Rs 229.20 each this year. The company reported a profit margin of 25.24% in the June quarter, 20.52% in March, 16.03% in December 2021, 12.61% in September and 12.55% in the year-ago quarter .

“We expect drawdowns to increase primarily due to higher electricity demand. In addition, electronic auction realization is expected to remain robust, reflecting the record price of imported coal. We maintain ‘buy’ on Coal India with an unchanged target of Rs 250 (6x Q2FY24E EPS). Our recommendation is also based on a sustainable dividend yield of 9% per annum,”

said Thursday.

saw its margins double to 19.68% from 8.86% in the June quarter of last year. This certificate jumped 37.10% this year.

From a margin of 1.22% in June 2021 to 3.79% in June 2022,

managed to constantly improve its margin. The certificate has risen 7.75% so far this year against a 0.64% drop in the BSE Sensex over the same period.

But Kotak in a note said margin would be under pressure for Blue Star in the September quarter due to high-cost inventory. Management said its margins weren’t affected immediately when commodity prices rose and it expects the same now when commodity prices fall. He expects margins to improve by 200 basis points in the second half if the slowdown in raw material prices continues, while suggesting that a long-term EBIT margin of 12% is achievable for air conditioning. of the room, but that a margin of 14 to 15% is not possible.

India’s margin stood at 12.65% in the June quarter. It posted losses in the year-ago quarter, but saw steadily improving margins thereafter. The scrip has gained 2% so far this year, largely in line with market returns.

“We believe that a strong focus on formal, fitness and casual footwear, coupled with expanding distribution, would help the business recoup lost volumes in the near term. Similarly, Bata’s margins are at 90 % of pre-pandemic levels due to higher marketing spend during We expect the company’s margins to gradually improve and reach pre-pandemic levels by FY24E,” Edelweiss said.

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and have fallen 5-8% this year despite improving margins. Margin improvement over the past four quarters was 55 basis points and 211 basis points for both companies.

(Disclaimer: The recommendations, suggestions, views and opinions given by the experts belong to them. These do not represent the views of Economic Times)


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