Q4 Results 2022 Impact: DMart has emerged as the top gainer with a share purchase recommendation

Impact of Q4 Results 2022: Shares of Avenue Supermarkets (Demart), Bondan Bank, Bank of Baroda and JK Paper traded green on Monday, following FY22’s healthy March quarterly results. DMart was the top gainer among them and rose 9 percent intraday.

Shares of Radhakishan Damani-owned retail chain Demart touched a one-day high of Rs 3,515.5 per share, followed by Bondan Bank, which rose 8 per cent to Rs 342.7 per share on the BSE intraday.

Shares of Bank of Baroda jumped nearly 5 per cent to Rs 99.5 per share and shares of JK Paper rose nearly 6 per cent to Rs 323 on the BSE intraday.

Despite low SSSG (same-store sales growth) and margin estimates, the growth outlook on DMart remains strong, Yes Securities said, suggesting a buy in the stock in a sharp revision to the target price of Rs 4,165 per share, which means a rise of around 29 to close on Friday. Percent in comparison.

According to Yes Securities, “Gross margins were gradually down 60 basis points due to lower sales of high margin consideration items. Despite opening 21 new stores in the fourth quarter, revenue grew 17.8% year on year. ”

For Bondan Bank, Kotak Institutional Equities said, “Private lenders have reported 18x year-on-year earnings growth, leading to a decline in YoY provision by almost 100% while operating profit increased by 45%. Gross NPLs decreased 440bps to 6% and net NPLs decreased 135bps to 1.7%, respectively. ”

Kotak maintained the ad rating with a revised price target of 360 per share, which means a rise of about 14 percent from Friday’s closing price. Management is leading the way for a normal year ahead, possibly due to a sharp fall in the NPL ratio and a recovery in debt growth, it said.

Large corporate accounts and MSME slips have exacerbated the stress at Bank of Baroda, with YES Securities maintaining a buy rating with a target price of Rs 116 per share, up 22 per cent from Friday’s closing price.

According to YES Securities, “Management has improved in line with its previous debt growth guidelines, which now indicate a 10-12% increase for FY23. It states that BOB can expand the margin by 10 bps when factoring in different moving parts. ”