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On Friday, the GIFT Nifty indicated a potential negative outset for NSE Nifty 50 and , influenced by global political tensions, US treasury yield, and lukewarm IT earnings. The market was also awaiting the US Fed chair speak and Q2 earnings season. Optimism was maintained as the West Asia conflict showed signs of stabilization and ITC reported substantial FMCG growth.
ITC reported a significant rise in net profit for Q2 FY24 to Rs 4,173.72 crore ($558 million), attributing this success to its thriving FMCG segment. This is in line with InvestingPro Tips, which highlight that ITC consistently increases its earnings per share and has impressive gross profit margins. It is also a prominent player in the Tobacco industry. The company’s recent performance also aligns with the fact that it holds more cash than debt on its balance sheet, which has been a crucial factor in its resilience. For more insights, you can visit InvestingPro Tips, which provides 15 additional tips on ITC.
In contrast, Hindustan Unilever (LON:) (HUL) experienced a slight profit decrease of 0.3% compared to FY23.
On the same day, Tata Motors (NYSE:) announced its acquisition of a 26.79% stake in Freight Tiger through equity shares and compulsory convertible preference shares investments amounting to Rs 150 crores ($20 million). According to InvestingPro Tips, Tata Motors is a prominent player in the Automobiles industry, and its stock price movements are quite volatile. It has experienced a large price uptick over the last six months and is trading near its 52-week high. More detailed insights can be obtained from InvestingPro Tips, which provides 11 additional tips on Tata Motors.
In other corporate news, Cyient’s Q2 FY24 profit was up 132.1% compared to last year, leading the company to announce an interim dividend of Rs 12 per equity share. The USFDA inspected Natco Pharma’s division in Kothur Hyderabad, India. Grasim Industries faced a Rs 141 crore demand notice for unpaid stamp duty on a scheme of arrangement involving Indian Rayon and Industries Limited.
HUL posted a Q2 profit of Rs 2,656 crore ($355 million), while several other companies are scheduled to report their Q2 earnings. Among them is United Breweries, which reported a 20% YoY dip in Q3 net consolidated profit despite witnessing a 14% revenue growth. Meanwhile, SoftBank (TYO:)’s venture capital fund SVF Growth is expected to divest a 1.1% stake in food delivery giant Zomato for Rs 1,024 crore ($137 million).
In terms of real-time metrics from InvestingPro, the company’s market cap is adjusted to 36.91M USD, and it has a P/E ratio of 9.93. Its revenue for LTM2023.Q2 is 29.37M USD, but it has experienced a decline in revenue growth of -20.45 %. Despite this, the company’s gross profit for LTM2023.Q2 was 11.24M USD, with a gross profit margin of 38.29 %.
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