At the forefront is ICICI Bank, taking the lead with a Q3FY24 net profit of Rs 11,052.60 crore.
In the December quarter, more than 60 companies experienced a significant trend: their fourth consecutive quarter of net profit growth. Noteworthy firms from various sectors such as finance, oil and gas, railways, IT, pharmaceuticals, cement, food delivery, and textiles have prominently featured in this notable list. Market analysts are optimistic about the performance of several companies in this group.
At the forefront is ICICI Bank, claiming the top position with a net profit of Rs 11,052.60 crore in Q3FY24. The private sector lender's profits stood at Rs 10,896.13 crore in the previous quarter ending September 2023 and Rs 8,792 crore in the corresponding quarter of December 2022. Julius Baer Equity Research holds an optimistic view on ICICI Bank, revising its target price to Rs 1,240 from Rs 1,180 previously. According to Julius Baer Equity Research, the bank is well-positioned to maintain growth, asset quality, and key profitability metrics, supported by robust digital assets and effective execution strategies.
Bajaj Finance, Union Bank, IndusInd Bank, Indian Bank, Bajaj Holdings & Investment, IDBI Bank, Bank of Maharashtra, L&T Finance Holdings, Manappuram Finance, IIFL Finance, Karur Vysya Bank, Five-Star Business Finance, Equitas Small Finance Bank, and Aptus Value Housing Finance India all recorded a consecutive increase in net profit for the fourth quarter in a row.
As per Systematix Institutional Equities, Five-Star Business Finance exhibited robust operational performance in Q3FY24, surpassing consensus estimates. The brokerage firm stated, "We anticipate the premium valuation multiple to persist due to its distinct market position, leading RoA, and strong asset quality throughout economic cycles." Five-Star Business Finance reported a nearly 44% year-on-year growth in net profit, reaching Rs 216.76 crore for the quarter ending December 2023.
Over the past four quarters, LTIMindtree, along with L&T Technology Services and KPIT Technologies, has demonstrated steady growth. LTIMindtree recorded profits of Rs 1,168.90 crore in Q3FY24, Rs 1,161.80 crore in Q2FY24, Rs 1,151.70 crore in Q1FY24, Rs 1,113.70 crore in Q4FY23, and Rs 1,000.50 crore in Q3FY23.
Moreover, Lupin, IIFL Finance, JK Cement, Birlasoft, PCBL, Zomato, and several other companies have shown impressive bottom-line growth for the fourth consecutive quarter. Notably, Zomato's turnaround from a loss of Rs 347 crore in Q3FY23 to a profit of Rs 138 crore in Q3FY24 highlights the resilience of the food delivery industry. JM Financial maintained a 'Buy' rating on Zomato post-Q3 results, setting a target price of Rs 200. Zomato's shares traded 1.18% higher at Rs 145.70 on February 9. Additionally, several other companies witnessed a rise in their net profit for the fourth straight quarter.
Systematix Institutional Equities is bullish on Titagarh Railsystems, raising its target price to Rs 1,258 from Rs 1,202 previously. According to the institution, Titagarh Railsystems' strengths lie in its manufacturing capacity of 8,400 wagons per year, a 30,000 metric ton steel foundry, and its significant market share in total tenders from FY20-23, averaging around 25-30%. With factories in India and France (via Firema), as well as partnerships or consortiums with multinational corporations, the company is poised to enhance its capacity to meet strong sector demand. Titagarh Railsystems has consistently demonstrated impressive margin and return ratios, with forecasted RoE/ROCE of 18.5%/18.8% in FY26E. With EV/sales and EV/EBITDA ratios at 1.8 and 16 respectively for the same period, the institution foresees a robust EBITDA and PAT CAGR of 42.3% and 52.8% during FY23-FY26E. The institution maintains its valuation of the stock at 30x and has revised its target price upwards.
