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In the past week, the benchmark indices, Sensex and Nifty 50 declined 1.3 and 1.1 per cent, respectively. Most of the sectoral indices ended in red. BSE Realty declined the most by 2.3 per cent followed by BSE Oil and Gas which declined 1.9 per cent. BSE Power and BSE Consumer Durables declined 1.5 per cent each. BSE Auto gained 0.5 per cent.
Notably, the week saw many stocks move up without being backed by any news-flows or fundamentals even when broader markets traded weak. Among the BSE 500 Suzlon, Angel one and Bajaj Auto were the top gainers driven by news flows.
Suzlon Energy
The stock of Suzlon Energy Ltd. returned around 16 per cent in the week ending October 20,2023. The stock recorded the highest single day gain of 4 per cent on October 20,2023.
While there was no significant fundamental news on the company during the week, reports suggested that Baroda BNP Paribas Arbitrage fund had acquired 6.5 crore shares in Suzlon on October 18,2023. This may have added to the already exuberant investor sentiment on the stock and sector in general. The stock has returned nearly 311 per cent in the last one year.
The trailing 12-month PE of the company is over 70 times and the price to book ratio is 36.88 times.
Angel One
The stock of Angel One returned 14 per cent in the week ending October 20,2023. The stock recorded the highest single day gain of 6.5 per cent on October 20,2023.
The main trigger for the rally seems to be the quarterly results. The revenue of the company during September 2023 quarter rose 41 per cent YoY to ₹1048.3 crore and the net profit margin was 29 per cent. The net profit for the said period was ₹304.5 crore which is 43 per cent higher YoY. The stock has returned nearly 46 per cent in the last one year.
The trailing 12-month PE of the company is 21.9 times whereas the price to book ratio of the company is 9 times.
Bajaj Auto
The stock of Bajaj Auto returned around 8 per cent in the week ending October 20,2023. The highest single day gain of the stock (7 per cent) during the week was on October 19,2023, the day after the Q2 results of the company were announced.
The revenue of the company in September 2023 quarter was ₹11,138.62 crore which is 6 per cent higher YoY. The net profit of the company rose 20 per cent YoY in September 2023 quarter to ₹1,836.14 crore. This seems to have caused the rally in the stock.
The trailing 12-month PE of the company is 25.8 times whereas the price to book ratio of the company is 5.3 times.
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