As the results season is coming to an end, the Indian markets witnessed mixed reportings with some companies overperforming and some being unable to meet the market’s expectations.
Listed below are 2 Mid-cap stocks that tanked up to 7 percent today due to the inability to meet the market’s expectations which created a bearish sentiment around its stock prices.
LIC Housing Finance Limited
LIC Housing Finance Limited is a company based in India engaged in the business of providing finance for purchases, construction, repairs & renovations of houses/buildings, etc. It offers a range of housing loans, such as home loans, home improvement loans, top-up loans, home loans for pensioners, home loans for non-resident Indians (NRI), etc.
The company has a market capitalization of Rs 20,190 crores and its stock currently trades at Rs 367, down 7 percent as compared to the previous closing price of Rs 394.70.
As per the latest standalone financial results for FY22-23, the company reported an increase in operating revenue from Rs 5,871 crores in Q3 v/s Rs 6,415 crores in Q4. Moreover, the net profit numbers, during the same period, went up from Rs 480 crores to Rs 1,180 crores exhibiting an increase of around 145 percent.
Despite good sequential numbers, the net profit numbers, comparing Q4FY21-22 v/s Q4FY22-23, have somewhat showcased muted results with an increase of just 5.5 percent from Rs 1,119 crores to Rs 1,180 crores. In addition to the above, the brokerage house Morgan Stanley is ‘underweight’ on the company’s stock with a target price of Rs 320 per share.
Oberoi Realty Limited
Oberoi Realty Limited is engaged in the development of Real Estate and Hospitality. The company, through its segments, includes exposure to residential, commercial, and social infrastructure projects such as Oberoi Splendor, Prisma by Oberoi Realty, Oberoi Sky Gardens, and other projects which are in the pipeline in Mumbai and other regions.
The company has a market capitalization of Rs 33,395 crores and its stock currently trades at Rs 918, down 6 percent as compared to the previous closing price of Rs 975.15.
As per the latest consolidated financial results for FY22-23, the company, on a YoY basis, reported an increase in operating revenues from Rs 2,694 crores during FY21-22 to Rs 4,193 crores in FY22-23. Moreover, the net profits went up from Rs 1,047 crores to Rs 1,905 crores.
Despite the increase in annual numbers, the recent sequential movements portray a decrease in the operating revenues as well as net profits with the former reducing from Rs 1,629 crores in Q3 to Rs 961 crores in Q4 and the latter, in the same time horizon, reduced from Rs 703 crores to Rs 480 crores.
Written by Amit Madnani
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