Meanwhile, companies from cyclical sectors including energy reported earnings below estimates.

As the quarterly earnings season has come to a close, investors are reassessing their portfolios.

In the quarter that went by, many stocks reported stellar results and saw their stock prices rise to yearly highs.

Let’s take a look at five fundamentally strong companies that reported stellar Q2 results and hit 52-week highs in recent days.

These stocks have good growth prospects within the industries they operate in.

 

#1 Godfrey Philips

Godfrey Phillips India is a tobacco manufacturer. The firm was originally established in London in 1844. It was one of the first UK companies to mass-produce cigarettes, apart from being one of the founding companies of imperial tobacco along with John Player & Sons.

Godfrey Philips share price hit its 52-week high of ₹1,913 on 18 November 2022 last week. Today, the stock is down a percent.

To say that the year gone by was difficult for the share market would be an underestimate. Market corrections and changing economic scenarios took many fundamentally strong stocks to the cleaners.

However, Godfrey Philips was an exception. Godfrey Philips share price is up 65% on a Yoy Basis. After seeing a reasonable downtrend in late 2021, the share price has been on a tear.

The share price has been rallying on account of quarterly figures reported by the company.

For the quarter that ended September 2022, the tobacco-manufacturer reported total revenue of ₹12,347 million (m) (about ₹1,234.7 crore). This is 25% higher on a sequential basis, and 53% on a YoY basis.

Similarly, the profit stood at ₹1,782 m, 36% higher on a sequential basis and 70% higher on a YoY basis.

A decrease in the smuggling of cigarettes and a stable tax regime for its products helped the company grow its business.

Another reason for the rise in share price was the sale of its loss-making chewing tobacco business. In October 2022, the company sold the business for a gain of ₹800 m.

This will be reflected in the company’s next quarter’s financial results. The market is expecting the company to post good quarterly numbers in the next quarter too.

#2 Exide Industries

Exide Industries is primarily engaged in the manufacturing of storage batteries and allied products in India. The company is the leading storage batteries manufacturer in India in almost all categories such as automotive, industrial, and submarine.

Exide Industries hit its 52-week high of ₹188 on 18 November 2022. Today, the stock is marginally down by half a percent.

If one wants to look at how volatile markets have been recently, take a look at the share price of Exide Industries. It has been on a roller coaster ride during the entire year.

Overall, the share price has performed positively on a YoY basis. It is up by 5% on a YoY basis. During the year the company announced many investment plans which boosted its share price.

In June 2022, the company invested ₹331.7 m in its subsidiary Exide Leclanche Energy and increased its stake from 77.9% to 80.2%.

The company has capex plans of ₹60 bn for a 12 GWh Li-ion plant in 2 phases. It plans to supply to all vehicle segments and has multiple chemistries and cell types.

However, the company has to face many challenges too. Heavy import duty on Lithium-Ion batteries, increasing cost of lithium, lack of technical expertise, contracting margins, etc. are signs of concern.

To add insult to injury, competitors like Mahindra & Mahindra, Hyundai Global Motors Company, and Ola Electric Mobility are developing their homegrown batteries. These companies have also been awarded PLI schemes to facilitate production of these batteries.

During the last month, Exide share price rallied 21% due to a good quarterly performance.

For the quarter ended September 2022, the turnover of the company was ₹38,768 m. It is 4% lower on a sequential basis and 14% higher on a YoY basis.

However, the profit and profit margins have shown a better sequential performance. Net profit increased by 19% on a sequential basis but only 4% on a YoY basis.

The net profit margin for the said quarter was 6.3% which is 1.3% higher on a sequential basis and 0.6% lower on a YoY basis.

#3 Engineers India

Engineers India is an Indian central public sector undertaking under the ownership of the Ministry of Petroleum and Natural Gas, government of India.

It is under the ownership of the Ministry of Petroleum and Natural Gas, government of India. It was set up in 1965 with the mandate of providing indigenous technology solutions across hydrocarbon projects.

Over the years, it has also diversified into synergic sectors like non-ferrous metallurgy, infrastructure, water and wastewater management, and fertilisers.

The company hit a 52-week high share price of ₹81.9 on 18 November 2022. The share price has been volatile throughout the year. On a YoY basis, the share price rose by 12%.

Most of the gains have come in the last one month owing to stellar quarterly results and big orders.

For the quarter that ended 30 September 2022, the total turnover of the company was ₹8,582 m. It is 2% higher on a sequential basis and 26% higher on a YoY basis.

However, the profit and profit margin have been the real show-stopper. Net profit increased by 66% on a sequential basis and 65% on a YoY basis.

The net profit margin was 10.8%, a very high margin as compared to the 6.3% and 8.6% margins reported on 30 June 2022 and 30 September 2022, respectively.

Last month, the company bagged an order from Oil and Natural Gas Corporation (ONGC) on an EPC reimbursable basis for ₹2.5 bn. The period for execution of the project is scheduled at 33 months.

On 18 November 2022, it bagged an order from Chennai Petroleum for overall project management & EPCM Services for OHCU revamp, CDWU, and related off-site facilities for the group-II LOBS project at the Manali refinery.