- Friday’s trading session saw an optimistic start for India’s main benchmark indices.
- Benefiting from strong Q2 results, Tata Motors increased by almost 4%.
- The SmallCap index surged by 0.9%, while the BSE MidCap index gained 0.6%.
Friday’s trading session saw an optimistic start for India’s main benchmark indices, following strong cues from their global counterparts. In the vicinity of 64,450 levels, the S&P BSE Sensex was observed to have opened 364 points higher at 64,445. It was around 19,250 when the NSE Nifty 50 was up more than 100 points.
Benefiting from strong Q2 results, Tata Motors increased by almost 4%; DVRs reached a record high. Other notable winners among the Sensex 30 shares included Tech Mahindra, Infosys, ICICI Bank, Mahindra & Mahindra, and HCL Technologies. The SmallCap index surged by 0.9%, while the BSE MidCap index gained 0.6% on the overall market.
Tata Motors
In intraday trading on Friday, Tata Motors shares jumped 4.5% to Rs 665.45 on the BSE. This came after the company reported a consolidated net profit of Rs 3,764 crore for Q2FY24, which was an increase from a net loss of Rs 944 crore for the same period the previous year.
From Rs 79,611 crore in July–September of 2022–2023 (Q2FY23) to Rs 1.05 trillion in Q2FY24, the company’s operating revenues enhanced by 32%. Ebitda margins were 15.5%, down 10 basis points year over year but up 450 basis points YoY.
The company is optimistic that it will perform better in the second half of the fiscal year (H2FY24), supported by robust order books at its luxury subsidiary Jaguar Land Rover (JLR), robust demand for heavy trucks in the commercial vehicle market, and new-generation products in the passenger car market.
With net debt expected to drop to less than £1 billion by the end of FY24, JLR’s cash flow guidance is unchanged, with free cash flow (FCF) expected to exceed £2 billion.
Once supply-side problems subside for JLR and commodity headwinds level off for the India business, Tata Motors ought to see a robust comeback.
Numerous factors, including drivers of volume and margin, growth in PV and commercial vehicles, enhanced free cash flow, and decreased net debt in both the JLR and India businesses, are anticipated to benefit the company.
KPI Energy has secured additional orders totaling 5.70 MW to carry out solar power projects under the company’s “Captive Power Producer (CPP)” division from Sun Drops Energia, a wholly-owned subsidiary.
Gabriel India’s Q2 net profit for the quarter that ended in September 2023 increased by 28.4% to Rs 46.95 crore from Rs 36.57 crore in the same quarter the previous year. At Rs 869.03 crore, total revenue increased 7.8% YoY. In the last month, the stock of this manufacturer of industrial products has increased by 79%.
