Synopsis : Indian markets traded lower on August 4 as weakness in heavyweight sectors weighed on benchmark indices. However, several stocks witnessed sharp movements because of earnings announcements, regulatory actions and positive brokerage commentary.
Here's a closer look at the biggest movers.
Restaurant Brands Asia
The operator of Burger King India witnessed one of the strongest rallies of the day, with the stock rising nearly 20%.
The surge followed a significant improvement in the company's quarterly performance.
Key highlights
- Net loss narrowed by 32% to Rs 28.34 crore.
- Revenue increased 18% to Rs 823 crore.
- EBITDA rose 37% to Rs 100 crore.
- EBITDA margin improved from 10.42% to 12.17%.
- Burger King India's network expanded to 590 stores.
The improvement in profitability and expansion of the store network boosted investor confidence.
KEI Industries
KEI Industries climbed almost 7% after reporting strong quarterly earnings.
Key highlights
- Net profit increased 40% to Rs 274.14 crore.
- Revenue rose nearly 23% to Rs 3,185.34 crore.
- EBITDA increased to Rs 415 crore.
- EBITDA margin improved from 11.49% to 13.04%.
- Domestic wires and cables revenue jumped 29%.
Analysts attributed the growth to strong demand and higher margins.
Ather Energy
Ather Energy emerged as another major gainer, rising nearly 15%.
Brokerages including CLSA, HSBC and Nomura highlighted improving profitability and stronger operating performance.
Key factors driving the rally
- Strong revenue growth.
- Better operating margins.
- Reduced losses.
- Recent price increases.
- Expansion of manufacturing capacity.
- Planned launch of the EL platform during the festive season.
Investors appeared encouraged by the company's progress toward profitability.
Dabur India
Dabur India fell nearly 2.5% after regulatory concerns weighed on investor sentiment.
The Food Safety and Standards Authority of India (FSSAI) directed the company to discontinue the sale of products carrying allegedly misleading "100%" claims.
Products affected include
- Honey
- Cow ghee
- Coconut water
- Edible oils
- Apple cider vinegar
The regulator also requested the company to submit an action-taken report within 15 days.
ITC
ITC shares gained close to 4% despite reporting lower profits.
Brokerages including Nomura and Jefferies expressed optimism regarding the company's outlook.
Quarterly highlights
- Standalone net profit fell 27% to Rs 3,579 crore.
- Revenue increased 28% to Rs 26,943 crore.
- Cigarette volumes remained resilient.
- Price increases helped support earnings.
Analysts believe the company's worst phase may now be behind it.
TVS Motor
TVS Motor shares traded higher after the company released impressive monthly sales figures.
Key highlights
- Overall sales increased 38%.
- Domestic two-wheeler sales rose 42%.
- Electric vehicle sales jumped 158%.
- International sales increased 29%.
The company also maintained its leadership position in India's electric two-wheeler market.
Final thoughts
Although benchmark indices remained under pressure, company-specific developments continued to dominate trading activity.
Restaurant Brands Asia, KEI Industries and Ather Energy benefited from strong earnings momentum, while Dabur India faced regulatory concerns. Meanwhile, ITC and TVS Motor attracted investors because of their positive outlooks.
Disclaimer: This article is intended solely for informational purposes and should not be considered investment advice. Investors should conduct independent research and consult a SEBI-registered financial adviser before making any investment decisions.
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