Three Stocks To Watch For December Quarter Results

The December quarter result season has begun. One reason why the December quarter results will be keenly followed is the optimism built around the second half of the financial year. Analysts and market experts have been predicting that the second half of FY14 would be much better in terms of growth. While expectations are running high, markets have remained volatile. Such volatility calls for a stock specific approach, rather than looking at the overall markets. Here are three stocks that should be looked at for the potential that their December quarter results hold.

The first is JSW Steel. This company is expected to see a revival in its fortunes following a turnaround in the steel sector and the increased production activity as announced by it. Margins are expected to witness an improvement in the December quarter following higher price realisations. But the most important factor to be looked at is the expected break even of its sick unit Ispat. JSW had Acquired Ispat, an ailing unit expecting it to break even by fiscal 2014. So, any news on the break even of Ispat should help the counter move northwards.

Next in line is TTK Prestige. The company witnessed a slower growth in the first half as its main market (South India) was facing the brunt of nature. Its plant remained shut due to those. However, the scenario is expected to improve in the second half as demand has increased from its prime markets. Further, the company has launched new products and the performance of these would reflect in the December quarter. It will be a combination of improved sales volumes, better price realizations and hence an improvement in margins along with additional growth coming from the new product launches. Apart from this, the company had planned to boost its international presence which will reflect in the form of higher exports, particularly to Japan. All put together, we  expect its results to be excellent and so makes the counter attractive.

Third is Bharat Forge. The company which is into forging business diversified itself into other forging activities from earlier being present in only the automotive forgings segment. The diversification seems to have paid off and hence the scrip has gained momentum on the bourses in anticipation of a better fundamental show. While its automotive forging segment is performing well on the global front, its other segments have been doing well on the domestic front. The combination of both has helped the company put in a better financial performance for the last three quarters on a sequential basis. With the exports orders improving and the benefit of rupee depreciation going in its favour, we expect the December quarter results to be equally or even better than its recent past. Watch this counter and step into it to ride the momentum that good results will give the stock.