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Top stocks across market cap which gave strong Q2 results amid overall weak earnings season
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4 min read | Updated on November 11, 2024, 16:18 IST
SUMMARY
Corporate earnings for Q2 disappointed the street, with over 34 NIFTY50 companies reporting flat growth. However, six stocks across each market-cap segment outperformed with blockbuster earnings in Q2. Among large-cap Apollo Hospital, Mankind Pharma led the pack for earning growth, while Midcap IT stocks like Coforge and Indian Hotel Company surprised the street with results.
Stock list
Blockbuster Q2 earnings of healthcare, pharma, mid-cap IT, hotels and EV companies lead to a surge in stocks
Q2FY25 started with weaker earnings than expected, with a flat YoY growth for 34 Nifty companies. Mixed performance was noted across banks, IT, consumer, and oil marketing companies. IT and Pharma companies reported healthy performance. Among consumer companies, the numbers were slightly lower than expected as the demand was subdued for the urban market, while rural growth contributed positively to overall growth.
Here are the top stocks with robust results in Q2FY25
| Stock | Categorisation | Q2 Profit YoY growth | Q2 Revenue YoY Growth | Return in last 6 months |
|---|---|---|---|---|
| Apollo Hospitals Enterprise | Large - Cap | 63% | 15% | 27% |
| Mankind Pharma | Large - Cap | 30.4% | 13.6% | 22% |
| Coforge | Mid - Cap | 24.47% | 34.54% | 81% |
| Indian Hotels Company | Mid - Cap | 232% | 27% | 31% |
| Olectra Greentech | Small - Cap | 156% | 70% | (-)3.22% |
| Computer Age Management Services | Small - Cap | 45% | 33% | 48.56% |
(Source - Screener.in and NSE) (Note - Market Cap categorisation based on AMFI categorisation
Large Cap Stocks with robust Q2
Apollo Hospitals Enterprise (AHEL)
On the operating performance, Apollo Hospital's earnings before interest, taxes, depreciation, and amortisation (EBITDA) during the September quarter rose 30% to ₹815.5 crore. The Chennai-based hospital chain reported a total of 7,994 operational beds as of the end of September. Its overall occupancy rate increased to 73% in the second quarter, up from 68% during the same period last year.
Mankind Pharma Ltd
The pharma player's revenue from operations increased 13.6% YoY to ₹3,076.5. EBITDA for the quarter surged 24.5% YoY to ₹850 crore in Q2, while margins expanded 240 basis points to 27.6 % for the reported period.
Mid-Cap Stocks with strong Q2
Coforge Ltd
The company's net profit grew around 9% in Q2 to ₹255.20 crore in the September quarter, up from ₹234.60 crore in the previous quarter. The company's recent acquisition of Cigniti Technologies also aided the company's improved earnings.
Revenue also grew 34.5% YoY to ₹3,062 crore in Q2. Meanwhile, Coforge also reported a total order intake of $516 million in Q2, including three large deals, marking the eleventh consecutive quarter with order intake steady above $300 million. Coforge's order book, executable over the next 12 months, touched $1.3 billion, implying a 40% YoY surge. Additionally, the company added 13 clients during the quarter.
Indian Hotel Company Ltd
EBITDA is up 41% to ₹501.3 crore, and the margin expanded 270 basis points to 27.5%. The profit of the hospitality firm, which operates the Taj brand, increased to ₹582.7 crore in Q2. The International Consolidated portfolio reported an occupancy of 75% (up 600 basis points), resulting in a RevPAR growth of 10%.
Small Cap Stocks with robust Q2
Olectra Greentech Limited
The EBITDA margin stood at 15.5% in the reporting quarter against 13.2% in the corresponding period in the previous fiscal.
Computer Age Management Services Ltd
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