In the trading week ended on March 7, the equity benchmark indices S&P BSE Sensex and Nifty recorded modest gains of 0.5 per cent and 0.7 per cent, respectively. The majority of sectoral indices concluded the week positively, with notable performances observed in BSE Metals (3 per cent), BSE PSU (2.4 per cent), and BSE Power (1.9 per cent).

Although several stocks experienced good upward movements, three standout performers driven by fundamental developments within the BSE 500 index were Bajaj Auto (10 per cent), BHEL (9 per cent), and Kalpataru Projects International (8 per cent).

Bajaj Auto

Indian automaker Bajaj Auto’s stock surged by 10 per cent last week, propelled by robust volume performance in February and an upward revision of its target price by a brokerage firm.

The company specializes in the development, manufacturing, and distribution of various automobiles including motorcycles, commercial vehicles, electric two-wheelers, and three-wheelers.

In the preceding week, Bajaj Auto reported a significant 24 per cent year-on-year growth in overall sales for February, accompanied by an increase in market share in the two-wheeler segment to 11.9 per cent compared to 10.9 per cent in the same period last year. Additionally, brokerage house JP Morgan revised its price target for Bajaj Auto from ₹8,275 to ₹8,900, driven by future growth prospects in the electric two-wheeler and three-wheeler vehicle segments.

The stock is trading at a trailing P/E ratio of 35 times.

BHEL

The share of BHEL jumped by 9 per cent last week, on account of securing order from NTPC Ltd.

The company is engaged in the design, engineering, manufacturing, construction, testing, commissioning, and servicing of a diverse range of products and services for key sectors of the economy, including power, transmission, industry, transportation, renewable energy, oil & gas, and defence.

In a recent disclosure to the stock exchanges, the company announced the procurement of a ₹9,500 crore contract from NTPC for the establishment of a thermal power project in Uttar Pradesh, with the contract to be executed over 54 months.

The stock is trading at an EV/EBITDA ratio of 102 times. PE is not valid as the company has reported losses at the net profit level.

Kalpataru Projects International

Kalpataru Projects International Ltd’s (KPIL) shares witnessed an 8 per cent increase in the last week, attributed to the company securing an Engineering, Procurement, and Construction (EPC) contract with Saudi Aramco.

Specializing in EPC services related to infrastructure development, KPIL engages in projects such as power transmission and distribution, railway track laying and electrification, oil and gas pipeline installation, among others.

In a recent filing with the stock exchange, KPIL announced the receipt of a letter of intent from Saudi Aramco for undertaking EPC works for three packages within the third expansion phase of the Master Gas System Network in Saudi Arabia. The scope of the EPC work encompasses the laying of over 800 km of lateral gas pipeline.

The stock is trading at a trailing P/E ratio of 34 times.

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