Nestle India, ICICI Bank and UltraTech Cement have made profits in the first quarter of the current financial year (2021-22). While Nestle India and ICICI Bank have performed moderately, UltraTech Cement has given very good results. What should be the attitude of investors towards these three stocks? Let us know what the experts are saying on this.
Company- Nestle India – Rating – HOLD ( ICICI Securities )
Nestle India has posted a net profit of Rs 538.58 crore in the June quarter. This is 10.6 percent more than the June quarter of the previous financial year. But the company’s profit has decreased by 10.5 percent compared to the March quarter. The company’s net profit in the March quarter was Rs 602.25 crore. ICICI Securities says that the company’s domestic revenue growth has been only 14 percent, which is not very good. Gross margins have been good but the EBITDA of the company is under pressure due to rising logistics expenses and curbing spending by the people. Although the company’s investment plan of Rs 26 billion is on track and out of this investment of Rs 10 billion is underway.
ICICI Securities has asked to hold this stock for long term. He has said that the consumption of packaged food will increase in the country. Apart from this, the investment of companies on their brand is also likely to increase. Distribution network will be expanded in rural areas and the emphasis will also increase on e-commerce. The company is also expanding in its Capex, so this share can be held.
Company – ICICI Bank – Rating – BUY (Nomura )
After the result of ICICI Bank, Nomura has retained its BUY rating. According to Nomura, the non-performing loan of the bank is increasing against the expectations of the market. While the management is confident of the recovery and collections trends, the market will continue to keep an eye on its operating profit growth.
ICICI Bank has announced a growth of 23 per cent in core pre-provision operating profit as compared to last year. It has increased due to increase in NII. The bank’s net interest margin grew by 3.89 per cent as cost of funds came down. It decreased by 13 basis points compared to the previous quarter. Nomura has reduced the EPS for the financial year 2022-23 by three percent. He says that the credit cost will increase and the demand for loan will remain low. Nevertheless, it has retained the BUY rating of ICICI Bank.
Nifty Outlook: Nifty is not getting support from heavyweight stocks, this is the opinion of experts about crossing the level of 16 thousand
Company- UltraTech Cement – Rating- BUY ( Edelweiss)
UltraTech Cement’s fourth quarter (2021-22) results have been excellent. Despite all the difficulties (corona lockdown) it performed well on the volume, realization, cost front and its earnings (Ebitda) reached the all-time high. Edelwiss says that Ebitda has increased more than its forecast of 19 percent growth.
The company’s cement prices have shown strength. Therefore, its Ebitda may increase by 7 percent in the financial years 2021-22 and 2022-23. Due to the good performance of UltraTech Cement and its other cement companies, the performance of cement companies is going to be good even in difficult times. The huge reduction in Corona’s case has made the company’s demand outlook even better. Therefore, UltraTech Cement is being given a BUY rating with a target price of 8,627.