Query Board

Investment Horizon : Query-Specific : Subscribers can ask their queries regarding stocks they hold and get our expert guidance. 



Established in 2003, Yes Bank is a full-service Indian commercial bank offering a wide range of financial products and services. In the latest quarter (Q3FY24), its total income increased by 18 per cent to ₹8,243.5 crore and net profit surged by 340.5 per cent to ₹242.6 crore compared to Q3FY23. Looking at the nine-month results (9MFY24), its total income rose by 22.2 per cent to ₹20,148 crore and net profit jumped by 54.4 per cent to ₹817.9 crore compared to 9MFY23. In fact, the company has already achieved 89 per cent of its FY23 total income and surpassed its FY23 net profit of `736 crore with a significant margin.The bank’s December quarter was a success story in financial management. 

Despite deposit and funding hurdles, its efficient balance-sheet strategies led to a stronger financial standing. This included a 30-basis point reduction in bad loans (NNPA) within the quarter, further boosting the profitability as reflected in the expanded net interest margins (NIMs). This demonstrates the bank’s resilience and strategic acumen in navigating the market challenges. Rising stakes held by FIIs and DIIs, in conjunction with favourable numbers, indicate potential strong support for the bank. Also, the current market trend is in favour of the banking sector. Hence, we recommend HOLD. 

HEG Ltd., a leading Indian graphite electrode manufacturer with the world’s largest single-site plant. The company’s financial performance in Q3FY24 compared to Q3FY23 saw a decline across various metrics. Its net sales decreased by 6 per cent to ₹562 crore, operating profit by 34 per cent to ₹87 crore and net profit by 58 per cent to ₹44 crore. In comparison to 9MFY23, the net sales decreased by 6 per cent to ₹1,847 crore and net profit decreased by 35 per cent to ₹279 crore in 9MFY24. While the company faces short-term headwinds related to its concerning margin decline, its long-term prospects remain promising. We recommend closely monitoring the management’s response to this issue and the market’s overall reaction before making investment decisions. Although the current situation raises concerns, a long-term investment horizon could offer potential. The company’s performance has been lacklustre in recent years, with promoter holdings declining by 3.84 per cent over the past three years and a low return on equity of 7.90 per cent over the past three years. We advise also taking into account the industry trend, which currently is in favour of infrastructure development. And though this may be positive for the company, we recommend SELL. 

Larsen and Toubro Ltd., an Indian engineering and construction giant, operates in two main areas: construction and engineering and services. 

While infrastructure remains the core business, IT has risen to become a significant contributor, highlighting the company’s diverse reach and expertise. Larsen and Toubro is a financial powerhouse, with construction and engineering driving the majority of its revenue (58 per cent). Its services sector also contributes significantly (36 per cent). The impressive market capitalisation of over ₹4.60 lakh crore reflects strong investor confidence, further bolstered by an equally sizeable order book. While its valuation may seem high with a PE ratio of 48.32 times compared to the industry average of 41.19 times, the company’s financial health seems promising. 

Furthermore, the company has consistently delivered positive results, with Q3FY24 showing an 18.9 per cent increase in net sales and a 17.2 per cent increase in net profit compared to the previous year. This upward trend extends to its half-yearly, nine-month and annual results, painting a picture of a financially sound and growing company. The company has achieved a remarkable feat within the current year, securing over ₹50,000 crore in orders – a significant rise compared to its baseline. 

This impressive performance has pushed the company’s order book past the ₹5 lakh crore mark, showcasing its strong momentum. Further highlighting its expertise, the company played a key role in constructing the highly significant Ayodhya Mandir, solidifying its position as a leading infrastructure and construction player. 

Looking ahead, analysts anticipate the company’s shares to potentially climb towards their 52-week high, fuelled by these positive developments and the continued acquisition of orders from both domestic and international clients. Heave, we recommend HOLD. 

Polycab India Ltd., a leading Indian manufacturer of cables, wires and allied products, offers a diverse range for both retail and industrial applications. The company has expanded into fast-moving electrical goods like fans, switches, lighting and solar products while holding a strong 22-24 per cent market share in the domestic organised wires and cables business. According to the Quarterly Results, the company’s net sales increased 16.8 per cent to ₹4,340.5 crore in Q3FY24 over Q3FY23. 

Its operating profit increased by 17.8 per cent to ₹640.5 crore, and net profit increased by 15.1 per cent to ₹416.5 crore in Q3FY24 compared to Q3FY23. In its nine-month results, the net sales increased by 27.22 per cent to ₹12,447.55 crore and net profit increased by 46.24 per cent to ₹1,249.44 crore in 9MFY24 compared to 9MFY23. In FY23, the net sales increased by 15.6 per cent to ₹14,107.8 crore and net profit increased by 40.4 per cent to ₹1,291.5 crore compared to FY22. 

The wire and cable market is projected to witness significant growth, with an estimated value of USD 228.42 billion in 2024, anticipated to reach USD 298.53 billion by 2029, marking a CAGR of 5.5 per cent during the forecast period of 2024-2029. This expansion is primarily attributed to factors such as the surge in renewable energy production, the rise of smart grid technology, and global governmental initiatives aimed at enhancing distribution and transmission systems. 

Despite a promising outlook for Polycab India’s growth, concerns linger due to the ongoing matter related to taxation and continued weakness in the FMEG segment. While a strong export order book promises robust export business from Q4FY24 onwards, sluggish domestic demand across key FMEG product categories has widened the segment losses. We advise investors to wait until clarity emerges on the income taxation issue and there is an improvement in the FMEG demand. Our recommendation is AVOID.