Fourth quarter earnings season kicks-off today with TCS releasing its Q4 earnings. Other big names releasing their earnings this week include Infosys on 13th April and HDFC Bank and ICICI Prudential Life Insurance Company, both on 16th April.
Making this thread for discussing all earnings updates on a weekly basis. Here are the companies that will be releasing their earnings this week.
| Company |
Date |
| TCS |
11th April |
| Birla Tyres |
|
| Delta Corp |
|
| Kesoram Industries |
|
|
|
|
|
| Hathway Cable |
12th April |
|
|
| Infosys |
13th April |
| Den Networks |
13th April |
|
|
| Alok Industries |
14th April |
|
|
| Oriental Hotels |
15th April |
|
|
| HDFC Bank |
16th April |
| ICICI Prudential Life Insurance Company |
|
| Websol Energy System |
|
Here’s what I feel about TCS’s result :
Short term move is mostly based on market positioning :
This is what you would be hearing from the media that Numbers are broadly inline with what the market expected and ofcourse if there is any correction it becomes a buy. So, in cases like this where result is inline with “expectations” - its like a cointoss in most of the cases to precisely assess the stock price movement for the next week or two. With mgmt commentary bit cautious, I think the chances of going down are more (but dont take my word for it, one good result by infy or wipro can change the scenario)
All said and done- It was a great year for the Company.
- For many folks (investors) - the performance must have been good enough as the company’s revenue, operating margin , order inflows were all pretty robust.
Other than positioning , Rising bond yields need to be kept on radar.
IT stocks are kind of dont like when bond yields spike (as they kind of slow things down globally where their main markets are) - If we check the history, they have fared pretty avg during such phase.
So what would I do personally in TCS ?
-
Short term : I would frankly not take a trade based on this result, if there is any extreme move in the short term, I may look for a contra opportunity.
-
Medium term (3-12 months) - Definitely a big avoid for me for this timeframe. in rising interest rate environment, its better to stick with stocks which love high interests.
-
Long term (>12 Months) - Its an evergreen portfolio stock. So, any dip is a buying opportunity.
Infy
-
With attrition levels almost at 27% , the situation is getting worse when it comes to retaining talent as the supply side issue seems to be worsening. So, margin pressure is going to be the norm it seems like for most of the IT companies.
-
With the valuation difference between TCS n Infy narrowing from last couple of years, it may readjust unless it demonstrates growth.
Summary : I think , It’s a sell for super short term and a buy if there is a major dip till 1700-1600 zones
HDFC Bank
- Results were almost inline (slightly below) expectations .
This thread covers major aspects of the result.
Summary : I think, it’s a buy on dip stock for both short n medium term as risk reward seems favourable for a bounce.