Aurobindo Pharma, JSPL, Medplus Health, Delhivery, and Campus shares surge after Q4 results - know what brokerages/analyst say

Shares of Aurobindo Pharma, Jindal Power Steel, Medplus Health, Delhivery and Campus Activewear surged up to 4 per cent on the BSE intraday during Tuesday’s trading session. These firms reported their respective fourth-quarter earnings for the financial year 2021-22 (Q4FY22) on Monday.   

Individually, Aurobindo Pharma and Campus Activewear shares surged most of all nearly 4 per cent each to Rs 549 and Rs 372.5 per share, respectively, followed by newly listed Delhivery shares gained over 3 per cent to Rs 538.5 per share on the BSE intraday. 

Similarly, Medplus Health gained nearly 2.5 per cent to Rs 886.5 per share and Jindal Power Steel up over 1 per cent to Rs 392 per share on the BSE intraday.  

Owing to the weak market on Tuesday, the majority of the above-mentioned stocks succumbed to volatility. Aurobindo is flat with a negative bias, while Jindal Power and Delhivery are flat with a positive bias during the mid-market session today. 

Except for Delhivery and Campus, all other three companies reported below estimated numbers, While the two newly listed companies reported healthy/in-line numbers during the March quarter. 

Exceptional items for the quarter comprise impairment of intangible assets/goodwill and capital work in progress for Aurobindo, and the company launched four ANDAs including one injectable during the quarter, Motilal Oswal said in his comment.  

Axis Securities maintained a Buy rating on Aurobindo and sees share price surging to Rs 750 per share, which implies an upside of 42 per cent.  

ICICI Securities said that the export share for JSPL improved sequentially, however, it is still lower by more than 40% in Q2FY22. With the divestment of Jindal Power (JPL), management looks to turn net debt-free by FY23E – a very likely scenario, in the brokerage’s view, it maintained a Reduce call. 

Despite the cash profits of Delhivery, the cash flows from operations have seen a significant decline. Further, the frequent use of adjusted EBITDA and adjusted cash profits makes it difficult to comment on the actual profitability, Parth Nyati, founder, Tradingo said. He recommended investors wait for a few quarters to analyze how the business evolves in terms of revenue growth and profitability.