The Indian stock market ended the week negative, with the Nifty 50 and the Sensex ending about a cent lower with the bears dominating the bulls. Even in this market, selected Nifty 500 stocks bucked the trend.
stock RBL . BankOne of the leading private lenders in India, it rose by a whopping 24.8 per cent this week. The stock reached the upper circle on Wednesday and closed at $124.45 on Friday. The reason for the sharp rise was the retirement fund, College Retirement Fund (CREF) buying an additional stake in the bank, through a syndicated deal executed on August 24. Prior to that, the fund owned 1.16 percent of the company’s shares. CREF operates as a non-profit organization that provides investment options such as investment, insurance, and annuity products and serves communities in the United States.
RBL Bank, formerly known as Ratnakar Bank, is back in the black as it reported a net profit of Rs 201 crore in the first quarter of FY23 against a net loss of Rs 459 crore in the first quarter of FY22. Net interest income was ₹1,027 crore, up 6 per cent from ₹ 969.5 crore in the same last financial period. The net interest margin was 4.36 percent.
As of June 30, 2022, the bank had 502 bank branches and 1,302 commercial branches, of which 289 were banking outlets.
RBL has been involved in a number of controversies in recent years. The bank’s problems started when there was a change of guard at its head, with then-CEO Vishwavir Ahuja unexpectedly resigning in December 2021 and the Reserve Bank of India appointing an additional director, Yogesh Dayal, for a two-year term. Some analysts saw this as an intervention by the government to save the private bank.
Even after a stellar week, the stock is still down 2.12 percent year-to-date and 23.4 percent from a year ago.
Other stocks that have outperformed the market this week are Dani Services Ltd.Provider of healthcare services and transaction finance through its “Dhani” app. The stock is up 26.67 percent over the past week when settling at $68.40 on Friday. This was on the back of the company’s strong performance in the June quarter. Standalone net sales were Rs 25.90 crore in the first quarter of FY23 and saw a 151.7 per cent year-on-year increase from ₹ 10.29 crore in the corresponding period last year. Dhani Services turned a net profit of Rs.11.7 crore in the first quarter of FY23, from a net loss of Rs.0.57 crore in the first quarter of FY22.
The stock is still down 58.7 percent since the start of the year.
Another winner this week is UFlex Ltd. The stock of India’s largest flexible packaging company is up 20 per cent and is currently trading at INR 804.90. The stock is approaching a 52-week high of €811. The founder of UFlex Ltd, Ashok Chaturvedi, is known as the father of the flexible packaging industry in India, and the company is a world leader in polymer science. Revenue for the quarter saw strong growth, coming in at Rs.4,046 crore, an increase of 46.5 per cent from Rs.2,761 crore reported in the same quarter last year.
During the first quarter of FY23, EBIDTA increased by 44.3 per cent YoY to Rs 725 crore. Net profit saw an increase of 41.9% YoY from 264 crores in Q1 FY22 to 374 crores in Q1 FY23. The company also announced a 14.8% YoY increase in total production to reach 1 59,793 MT and total sales volume settled at 1,54,811 MT with a growth of 15.7% YoY. It has also estimated additional volumes will come from its new capacities in Dubai and Karnataka. The stock is trading at 0.74 and 0.64 times the estimated book values for fiscal year 23 and 24, respectively.
August 27 2022