The week gone by saw Nifty and Sensex clock weekly gains of around 1.2 per cent and 0.9 per cent respectively. While Nifty touched an all-time high of 24,861 and closed at 24,834.8, Sensex closed at 81,332.7 points marginally lower than its all-time high of 81,587.8.

The Dalal Street was in green for most parts this week except for BSE Bankex and BSE Realty which shed 2.5 per cent and 1.5 per cent, respectively. BSE Power was the biggest gainer gaining 5.5 per cent followed by Healthcare at 5.3 per cent and Auto at 4.8 per cent.

Here are 3 stocks from the BSE 500 universe that outperformed the benchmark indices during the last week, with the fundamental developments decoded behind such outperformance.

IDBI Bank Limited

The share price of IDBI Bank Limited touched its 52-week high of ₹107 during the week and settled down at ₹104 logging in steep weekly gains of 17.2 per cent. IDBI Bank has crossed the ₹100 mark for the first time since June 2014.

The rise could be attributed to the Q1 FY 2024-25 results declared during the week, where the standalone net profit jumped 40 per cent Y-o-Y to ₹1,719 crore from ₹1,224 crore, even when the NII dropped ₹3,233 crore from ₹3,998 crore on the back of a Y-o-Y dip in NIM from 5.8 per cent to 4.2 per cent.

The results were decent on the asset quality front, with Gross NPA improving to 3.9 per cent down from 5.1 per cent and Net NPA improving to 0.2 per cent from 0.4 per cent Y-o-Y.

With RBI having submitted ‘Fit and Proper’ conditions required for potential buyers interested in acquiring IDBI Bank last week, the Divestment Secretary during the week declared that the Indian government would allow bidders to access private data of the bank by early August, which also buoyed the investors. But it is to be noted that the bank has been slated for privatisation since 2022.

IDBI Bank Limited is classified as a private sector bank which has an established presence in associated financial sector businesses including capital market, investment banking and mutual fund.

The stock is trading at a trailing 12-month PE of 17.8 times and Price to Book ratio of 2.2 times.

Suzlon Energy Limited

The shares of Suzlon Energy Limited clocked in weekly gains of 13.5 per cent also touching its 52-week high of ₹63.8 along the way while settling down at ₹61.9 as on Friday. This climb was on the back of quarterly results released for Q1 of FY 2024-25 released during the week. The operating revenue on a consolidated basis grew 49.6 per cent Y-o-Y to ₹2021.6 crore from ₹1350.9 crore. This was on the back of notable increase in the volume of deliveries which grew 103 per cent on a Y-o-Y basis to 274 megawatts (MW)

The company clocked in robust numbers for the quarter, notably winning orders and growing the orderbook to its largest ever in the history of the company at 3,817 MW and solid operating EBITDA growth of 85.9 per cent Y-o-Y with operating EBITDA margin widening to 18 per cent in the current quarter as compared with 15 per cent during Q1 of FY 2023-24.

However, the spotlight of the quarter was the wind turbine generator (WTG) segment of the company, the topline of which grew by 86.3 per cent with PBT growing multi-fold from ₹5.4 crore to ₹123.6 crore Y-o-Y.  Several brokerages have increased their targets post the Q1 show of the company.

Suzlon Energy Limited is a vertically integrated WTG manufacturer and also undertakes installation, operations and maintenance of all WTG sales.

The stock is trading at a trailing 12-month PE of 90.6 times.

Tata Motors Limited

Tata Motors Limited also soared to its 52-week high touching ₹1,120 during the week before settling nominally lower at ₹1,118, clocking in a healthy 12.9 per cent returns for the week. During the week, it also surpassed Maruti Suzuki to become the largest automobile manufacturer in terms of market-cap regaining the place after 5 months. The rise during the week was orchestrated by international brokerage Nomura which upgraded the stock with a BUY recommendation from NEUTRAL. Nomura noted potential upsides from strategic shift in Jaguar Land Rover (JLR) to luxury segment from the existing premium segment and the proposed demerger of commercial vehicles (CVs) from passenger vehicles (PVs) to be catalysts to improve market share and operating margins in the coming years. The target price was also raised to ₹1,294 per share which was viewed as another positive by the Dalal Street.

Board meeting for considering and approving the results for Q1 of FY 2024-25 is scheduled to be held on August 1, 2024.

Tata Motors Limited is a leading global automobile manufacturer offering a wide and diverse portfolio of cars, SUVs, trucks, buses and defence vehicles amongst others.

The stock is trading at a trailing 12-month PE of 12.8 times.

Related Topics