Shares of five Nifty constituents Tata Motors, L&T, Bajaj Auto, Asian Paints, SBI Life Insurance were trading mixed in Tuesday’s trade ahead of their June quarter results.
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Shares of SBI Life Insurance declined 0.86 per cent to Rs 1,306.80. Motilal Oswal Securities expects SBI Life to report a 14.5 per cent YoY rise in profit at Rs 300.90 crore. Growth in new business premium is expected to remain modest. Margin may remain healthy at 31 per cent, while VNB growth is expected to be soft.
“We expect protection mix to improve and non-PAR to remain healthy,” the brokerage said.
Asian Paints shares were trading 0.33 per cent lower at Rs 3,530.30. Kotak Institutional Equities expects Asian Paints to report 35 per cent YoY jump in consolidated profit at Rs 1,405.30 crore on an 8.3 per cent YoY rise in sales at Rs 9,323.30 crore. It expects 40 bps sequential improvement in consolidated gross margin to 42.9 per cent (up 520 bps YoY) due to decline in raw material prices and improvement in product mix. Ebitda margin is seen expanding 395 bps YoY after considering higher A&P intensity.
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Tata Motors climbed 1.64 per cent to Rs 639.55. Sharekhan expects Tata Motors to report a consolidated profit of Rs 3,168 crore for the June quarter compared with a loss of Rs 5,732 crore in the same quarter last year. It sees sales for the quarter surging 42 per cent YoY to Rs 1,02,161 crore from Rs 71,935 crore YoY. Ebitda margins are seen coming in at 12.1 per cent against 4.4 per cent, up 764 basis points YoY.
Bajaj Auto was flat at Rs 4,882. Emkay Global expects Bajaj Auto to report 38 per cent YoY rise in net profit at Rs 1,623.90 crore for the June quarter. It sees sales growing 24 per cent YoY to Rs 9,934.30 crore. Ebitda is seen growing 49 per cent YoY to Rs 1,930.30 crore while Ebitda margin is seen coming in at 19.4 per cent, up 320 basis points. Revenue is expected to grow YoY due to better volumes (up 10 per cent) and improved realisations. Ebitda margin is likely to expand YoY due to better pricing and scale. On a QoQ basis, realizations are expected to decline, given the lower share of 3Ws.
Shares of L&T, meanwhile, edged 0.19 per cent higher at Rs 2,610.35.
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HDFC Institutional Equities is expecting the engineering and construction major to clock a 23.8 per cent YoY rise in consolidated profit at Rs 2,110 crore on a 12.8 per cent YoY rise in net sales at Rs 40,440 crore. Ebitda is seen growing 15.5 per cent YoY to Rs 4,570 crore while Ebitda margin is seen coming in at 11.3 per cent, up 26.5 basis points. The L&T board, along with its quarter results, would also consider proposals of share buyback and special dividend.
