Earnings Digest 23.04.23
Disclaimer
Nothing you read here, should be construed as investment advice. I do not know your circumstance and so please treat the below as nothing more than what my thoughts are, which are subject to change without notice. Please do your own work and consult your own financial advisor. You will very likely lose money if you use any information in this post without your own due-diligence. We may have long or short positions in these stocks and we can buy or sell these without any notice. This is NOT investment advice and only educational in nature.
I had promised an earnings digest and here it is.
Since we are at the beginning of the earnings season it is going to be a short one.
Here’s a list of companies which have come out with good earnings, with a short note, and should be on one’s radar for the next three months:
Avantel - Multi quarter high topline and operating profits. Connected to the defence sector which is a theme in play.
Just Dial - Second quarter of good numbers, margins improving. If they are able to repeat these numbers then the valuations are undemanding. Historically margins have been higher so if the topline growth continues to improve with the margins expanding further it can do well. Only headwind is that tech in general is out of favour so that can test one’s patience.
Wendt - Third quarter of good and improving numbers without much headway on the price over the last 3-6 months atleast. This quarter can get the re-rating started. Capex play which is again a theme which is in favour and should act as a tailwind.
Many people reached out to me with Angel broking as a candidate. Although the numbers are good, the sector overall is seeing de-growth. Cash market volumes are falling and generally the larger names are talking about peaking of growth atleast near term. This means expecting better numbers from here is going to be hard which is why i would not add it to the list. Valuation is undemanding for the reported numbers though but in the absence of a growth catalyst one would be better off to wait.
ICICI Bank has also consistently reported good numbers for last few quarters - much like SBI did - but with the large caps unless the market rallies they will find it hard to move up significantly. So if the market were to make a move to the all time highs expect likes of ICICI, SBI to lead the rally.
However none of the numbers would be categorized as blockbuster so far. I hope we get some as more results come out.
This is all for now.
As the earnings season progresses will try and come back with more.
Disclaimer
Nothing you read here, should be construed as investment advice. I do not know your circumstance and so please treat the below as nothing more than what my thoughts are, which are subject to change without notice. Please do your own work and consult your own financial advisor. You will very likely lose money if you use any information in this post without your own due-diligence. We may have long or short positions in these stocks and we can buy or sell these without any notice. This is NOT investment advice and only educational in nature.