HDFC, HDFC Bank, ITC, HUL, Maruti Suzuki hit record highs

BPCL and IndusInd Bank are seven stocks from Nifty 50 index hit their respective record highs.

Seven companies – Housing Development Finance Corporation (HDFC), HDFC Bank, ITC, Hindustan Unilever (HUL), Maruti Suzuki India, Bharat Petroleum Corporation Limited (BPCL) and IndusInd Bank – from the Nifty 50 index hit their respective record highs.

At 02:27 pm; Nifty 50 index was up 0.2% at 9,614, touched a new high of 9,638 on the National Stock Exchange (NSE) in intra-day trade.

ITC hit a new high of Rs 320, up 3.5% on NSE in intra-day trade, extending its Friday’s 3% gain, after reporting January-March quarter (Q4FY17) earnings.

ITC posted a 12.3% yea-on-year (YoY) rise in its net profit at Rs 2,669 crore in Q4FY17, while its income from operations grew 6.15% at Rs 15,009 crore. Cigarette EBIT (earnings before interest and tax) margin expanded 107bps YoY to 36.4% for the quarter led by price hikes.

“Going ahead, assuming that taxes will not increase post Goods & Services Tax (GST) implementation, ITC's cigarette volumes will witness healthy recovery in volumes. Further the price hikes done by ITC during December 2016 and March 2017, will aid cigarette margins during FY18,” analyst at Antique Stock Broking said in a result review.

Given the clarity in tax regime post GST and recovery in earnings during the next two years, we believe that ITC will witness a re-rating and trade in line with the consumer sector average valuations, added report.

HUL too, up 3% to Rs 1,074 on NSE. In past seven trading sessions, the stock gained 8.5% after the reported a better-than-expected Q4FY17 results and approval rates for a number of categories by Goods and Services Tax (GST) Council.

“After registering 4% decline in underlying volume growth (UVG) in Q3FY17, the 4% growth in Q4FY17 was inspiring, particularly when peers were struggling. We are encouraged by HUL’s broad-based growth, as Home Care, PC and Refreshments verticals registered healthy 7%, 8% and 11% growth respectively,” analyst at HDFC Securities said in result update.

Stable raw material prices with healthy premium segment growth can expand margins in the coming quarters. We expect the stock to give healthy returns in the near term, added report.

COMPANY	LATEST	ALL TIME HIGH	PREV HIGH	PREV DATE
B P C L	758.10	769.25	753.95	26-May-17
H D F C	1599.80	1600.00	1591.85	03-May-17
HDFC BANK	1636.65	1648.00	1632.00	26-May-17
HIND. UNILEVER	1067.30	1074.00	1050.00	25-May-17
INDUSIND BANK	1494.65	1504.70	1484.80	26-May-17
ITC	318.50	319.85	313.80	26-May-17
MARUTI SUZUKI	7135.80	7197.80	7085.05	26-May-17