With this, the stock ended its two-day losing streak. Earlier in the day, ZEE had, due to a lack of quorum, cancelled a meeting of the board of directors which was scheduled to be held on Wednesday to approve the unaudited financial results.
Kotak’s Q2 profit down, stock up
Kotak’s September quarter profit at Rs 2,032 crore came in lower than Rs 2,185 crore estimated by analysts in an ET NOW poll. But asset quality improved and gross NPA and provisions fell sequentially, sending the stock 2.5 per cent higher for the day.
The bank said its profit declined 7 per cent year-on-year (YoY) from Rs 2,184 crore. Net interest income (NII) for the bank rose 3 per cent YoY to Rs 4,021 crore from Rs 3,897 crore YoY, in line with Street expectations.
TechM has potential to see further rerating
Despite trading at an all-time high level, shares of Tech Mahindra have the potential to rerate further, said analysts after the company’s strong Q2 results. A host of brokerages, including CLSA, see a case for continued rerating for the stock.
A strong Q2 beat sustained growth outlook and improved capital return could support valuations further despite a 32 per cent rerating in the last three months, analysts said. The scrip rose 2.5 per cent for the day.
gains, stock top Rs 4,200
The much-tracked stock was in a recovery mode as it climbed 4.65 per cent to Rs 4211.90. Analysts said the business model of the company is still evolving, and evolving very smartly.
“On one side, they started with the railway ticketing, and are now expanding their base into other areas of ticketing, including cruise. The other aspect is they are getting into the hospitality business by way of becoming aggregators. In the catering business, they continue to deal with a commission-based model. Most importantly, they are developing the app, which is again going into the aggregator mode,” Deven R Choksey of KRChoksey Shares and Securities said.
However, any valuation which discounts the future by at least three years in advance will probably not sustain, he added.
