Consumer discretionary stocks in focus; Orient Electric, Dixon hit new high

Moreover, Amber Enterprises, Avenue Supermarts (DMart), Info Edge (India), Jubilant FoodWorks, and Relaxo Footwears also hit their respective new highs

Shares of consumer discretionary goods & services (CDGS) companies were in focus with 11 stocks from the S&P BSE CDGS index hitting their respective 52-week highs on Friday in an otherwise weak market after reporting a healthy set of numbers in the December quarter.

Of these, seven stocks – Amber Enterprises, Avenue Supermarts (DMart), Dixon Technologies, Info Edge (India), Jubilant FoodWorks, Orient Electric and Relaxo Footwears – hit their respective record highs today.

Other stocks in the index that hit their new 52-week highs on the BSE are Brigade Enterprises, Crompton Greaves Consumer Electricals, Pricol and Vascon Engineers. In comparison, the S&P BSE Sensex was down 0.46 per cent at 40,726 points at 12:30 pm.

In total, seven out of 11 companies that announced October-December quarter (Q3FY20) results, reported 20 per cent year on year (YoY) jump in aggregate net profit at Rs 856 crore. It had a combined net profit of Rs 715 crore during the same quarter last fiscal.

Shares of Orient Electric were up 5 per cent at Rs 250 today. The shares have been trading higher for the sixth straight day, rallying 20 per cent during the period. The company’s revenue grew 17.9 per cent YoY at Rs 496 crore, while profit before tax (PBT) rose 66.7 per cent YoY to Rs 29.5 crore in Q3FY20. Earnings before interest, tax, depreciation and amortization (Ebitda) margin expanded 270 basis points (bps) to 9.1 per cent from 6.4 per cent in year ago quarter.

The management said that primarily, the Ebitda gain was influenced by expansion of gross margins resulting from favourable mix of premium and decorative fans, water heaters, street lighting partially offset by lower contribution from lamps. This was further supported by leverage of the expenses incurred together with control of expenditure, it said.

Shares of Amber Enterprises India soared 9 per cent to Rs 1,639 after the company’s operating Ebitda more-than-doubled at Rs 52 crore. It had clocked an operating Ebitda of Rs 26 crore in the same quarter last year. Operating ebitda margin improved 158 basis points to 6.6 per cent in Q3FY20 from 5.02 per cent in Q3FY19.

As per the company's financial statements, its revenue during the quarter under review grew 52 per cent YoY to Rs 788 crore, as compared to Rs 518 crore in the previous year quarter. Net profit, meanwhile, jumped more than six-fold to Rs 25 crore from Rs 4 crore reported in the corresponding quarter of the previous fiscal.