RVNL, OFSS and PCBL: Three shares that outperformed within the week ending January 20

Over the last week, bellweather indices BSE Sensex and Nifty fell by round 1.5 per cent on account of promoting stress because of rising US bond yields, and elevating issues about potential delays in rate of interest cuts. Whereas sectoral indices resembling BSE Realty, BSE FMCG, BSE Metals  and BSE Energy ended within the crimson, others, specifically BSE Oil and Fuel, BSE Capital Items, BSE Teck and BSE Auto, gained in the course of the week.

Whereas many shares moved up with out being backed by any vital information flows or fundamentals, RVNL, Oracle Monetary Companies Software program (OFSS) and Phillips Carbon Black Ltd (PCBL) had been the highest gainers pushed by elementary information throughout the BSE 500 index final week.

RVNL

The inventory of RVNL shot up by round 58 per cent over the last week, pushed by expectations of sturdy capex for the Indian Railways within the upcoming interim finances.

Rail Vikas Nigam Ltd (RVNL) is a PSU firm engaged within the enterprise of growth of rail infrastructure.

Different railways shares resembling IRFC and IRCON Intl joined the rally with RVNL. That is on account of expectations of upper budgetary allocation for Indian Railways at round ₹2.8-3 lakh crore within the interim finances FY2024-25, towards ₹2.4 lakh crore for FY2023-24.

Nevertheless, it must be famous that the RVNL inventory is buying and selling at an costly trailing P/E of 48 occasions. Even when factoring development prospects, the uspide final week whereas backed by speculative information, seems overdone.

OFSS

The inventory of Oracle Monetary Companies Software program (OFSS) gained round 44 per cent on the again of strong Q3 outcomes.

OFSS, a subsidiary of US-listed Oracle Corp, is engaged within the enterprise of offering IT services and products in domains resembling capital markets, banking, wealth administration, company banking, funds, retail banking, and threat and compliance.

Throughout Q3FY24, the corporate’s income noticed a y-o-y development of round 26 per cent. Additional, its web revenue elevated by 50 per cent in the course of the interval on a y-o-y foundation.

The OFSS inventory is buying and selling at a trailing P/E of 32 occasions.

Phillips Carbon Black

The inventory of Phillips Carbon Black Ltd (PCBL) rose by round 22 per cent, pushed by sturdy Q3 outcomes.

PCBL, part of the RP Sanjiv Goenka group is engaged within the enterprise of producing carbon black, which is used within the manufacturing of automotive tyres.

Throughout Q3FY24, the corporate’s income grew by 13 per cent on a YoY foundation. Additional, its EBITDA and PAT noticed a YoY development of 66 per cent 48 per cent, respectively.

The inventory is buying and selling at a trailing P/E of 26 occasions.