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The Baseline
27 Apr 2023
Screener of the week: Adani Group stocks see changes in FII and MF holdings
By Abdullah Shah

In this week’s edition, we take a look at the changes in institutional holding for Adani Group stocks in Q4FY23. It’s been a rough quarter for these stocks as a few of them lost over 50% in value following the explosive report by Hindenburg.

Foreign investors seem to have taken advantage of this correction, while mutual funds largely stayed away. This screener shows the QoQ change in the holdings of FIIs and mutual funds in Adani Group stocks in Q4FY23. 

Adani Ports’ FII holdings have risen by 4.2% QoQ in Q4, with Goldman Sachs Trust being the largest buyer. It bought a 1.8% stake in the company. However, mutual funds stayed skeptical and sold a 1.3% stake in the company. Kotak Equity Arbitrage Growth Fund also sold a 0.3% stake. 

Adani Enterprises witnessed its FII holdings increase by 2.4% QoQ in Q4 as Goldman Sachs Trust bought a 1.4% stake in the company. Meanwhile, mutual funds reduced their holdings by 0.3% in the same period.

In contrast, NDTV saw its FII holdings fall by 2.3% QoQ in Q4. Both domestic funds and foreign investors reduced their stakes by over 1.5% in cement majors such as ACC and Ambuja Cement.

You can find some popular screenershere.

 
Trendlyne Marketwatch
Trendlyne Marketwatch
26 Apr 2023
Market closes higher, KEC International bags new orders worth Rs 1,017 crore

Trendlyne Analysis

Nifty 50 closed at 17,813.60 (44.4, 0.3%), BSE Sensex closed at 60,300.58 (169.9, 0.3%) while the broader Nifty 500 closed at 14,994.40 (38.7, 0.3%). Of the 1,948 stocks traded today, 1,012 were gainers and 861 were losers.

Nifty 50 rose over 100 points from its day’s low and closed above the 17,800 mark on a volatile day of trade. Indian indices closed in the green for a third straight trading session. Maruti Suzuki closed marginally higher after its Q4FY23 net profit rose by 42.7% YoY to Rs 2,623.6 crore.

Nifty Smallcap 100 and Nifty Midcap 100 closed in the green, following the benchmark index. Nifty Realty and Nifty FMCG closed higher than Tuesday’s closing level. The fertilizers sector was the top-performing sector of the day as it rose over 3%, according to Trendlyne’s sector dashboard. Nifty IT closed in the green, taking cues from the tech-heavy Nasdaq futures, which traded sharply higher.

All major European indices traded in the red amid mixed global cues. Most Asian indices closed in the red, except for India’s BSE Sensex and Hong Kong’s Hang Seng index, which closed in the green. US indices futures traded higher. Brent crude oil futures traded in the green after falling over 2% on Tuesday.

  • Mankind Pharma’s Rs 4,326.4 crore IPO gets bids for 87% of the available 2.8 crore shares on offer on the second day of bidding. The retail investor quota gets bids for 25% of the available 1.4 crore shares on offer.

  • Nestle India beats Tata Consumer Products in YoY & QoQ revenue and profit growth, one-year price change and annual RoE. But lags in PE ratio, FII & MF holdings and broker average rating.

  • CSB Bank and Glenmark Pharmaceuticals reach their 52-week highs of Rs 295 and Rs 522.5 per share respectively. CSB Bank has risen 22.8% over the past month, while the other went up 22.6%.

  • Dalmia Bharat is rising as it enters a definitive agreement with Jaiprakash Associates for the acquisition of JP Super and Bhilai Jaypee Cement. The company will acquire JP Super at Rs 1,500 crore while it has a share purchase agreement for the acquisition of a 74% stake in Bhilai Jaypee Cement for Rs 666 crore.

  • Maruti Suzuki’s standalone Q4FY23 net profit rises 42.7% YoY to Rs 2,623.6 crore as revenue increases 21%. Cost of materials has fallen 8% YoY in Q4. The company has also announced a capacity addition of 10 lakh units at Manesar and Gurugram, along with a dividend of Rs 90 per share for FY23.

  • Nifty Realty, Nifty PSU Bank and Nifty Bank have risen more than 8% in the past month.

  • KPIT Technologies is rising as its Q4FY23 net profit rises 41.5% YoY to Rs 111.6 crore and revenue jumps 56.1% YoY. This robust performance is driven by healthy revenue growth in the European and American market segments despite the macroeconomic headwinds impacting those regions. The stock shows up in a screener for companies with quarterly revenues increasing sequentially for the past eight quarters.

  • Poonawalla Fincorp’s Q4FY23 net profit rises 67% YoY to Rs 198.5 crore. The NBFC has declared a dividend of Rs 2 per share for FY23. The stock is trading near its 52-week high with significant volumes.

  • Indian Sugar Mills Association (ISMA) revises India’s sugar production estimate to 328 lakh tonnes for the current marketing year (October-September), from the earlier estimate of 340 lakh tonnes.

  • KEC International is rising as it bags new orders worth Rs 1,017 crore across transmission & distribution, civil and cables segments. The stock is trading above its first resistance or R1 level.

  • Fertilizer stocks like Gujarat State Fertilizer & Chemicals, Gujarat Narmada Valley Fertilizers & Chemicals and Chambal Fertilisers & Chemicals are rising in trade. The overall Fertilizer sector is also trading in the green.

  • Welspun India, Shriram Finance and Indian Hotels Co rise 5.8%, 4.2% and 3.2% respectively in the past week, ahead of their Q4FY23 results tomorrow.

  • Gland Pharma is rising as promoter Fosun Pharma Industrial drops plans of selling its stake in the company, according to reports. Fosun Pharma currently holds a 57.86% stake in Gland Pharma.

  • Rating agency S&P Global Ratings upgrades its rating on Tata Motors to ‘BB’ from ‘BB-’, with a stable outlook and improvement in earnings. S&P expects the company’s cash flow to strengthen in the next 12-18 months.

  • ICICI Securities maintains its ‘Buy’ rating on Crompton Greaves Consumer Electricals but lowers its target price to Rs 325 from Rs 495, which implies an upside of 29.3%. The brokerage cites the expectation of muted demand for consumer durables in FY24 for cutting its target price. However, it remains optimistic about the firm’s prospects given its strong brand value and distribution network.

  • Nippon Life India Asset Management is rising after reporting a 13% YoY increase in its Q4FY23 net profit to Rs 198 crore. Its AUM rises 3.5% YoY and market share grows 14 bps YoY to 7.24%. It shows up in a screener of stocks with improving revenue for the past two quarters.

  • ACC, Hindustan Unilever and MPhasiS fall 1%, 1.6% and 1.3% respectively over the past week, ahead of their Q4FY23 results tomorrow.

  • IndiaMART InterMESH will consider issuing bonus shares in its upcoming board meeting on Friday. The company will also announce its Q4 results on the same day.

  • Sumant Kathpalia, Managing Director and CEO of IndusInd Bank, expects net interest margins (NIMs) to be in the range of 4.2-4.3%. He adds that the bank will be able to maintain loan book growth of 18-23%.

  • Dalmia Bharat's net profit rises 125% YoY to Rs 609 crore in Q4FY23. Revenue grows 15.7% YoY aided by a 13.3% YoY increase in sales volume. Mahendra Sanghi, MD & CEO of the company, expects profits to further improve on the back of a strong demand outlook and steady cement prices.

  • Multi Commodity Exchange of India, Au Small Finance Bank and 360 One Wam are trading below their third support or S3 level.

  • AU Small Finance Bank’s Q4FY23 net profit rises 22.7% YoY to Rs 424.6 crore. Net interest income also increases 30%. Asset quality has improved with gross and net NPAs falling 32 bps and 8 bps YoY respectively. The stock is currently trading below its third support or S3 level.

  • Aditya Birla Capital is rising as reports suggest that 2.6 crore shares (1.08% equity) of the company, amounting to Rs 416.4 crore, change hands in a block deal.

  • Patel Engineering rises as it wins orders with its joint venture partner for Krishna Marathwada Irrigation Project and Krishna Marathwada Irrigation Project from the Water Resources Department, Government of Maharashtra. The company's share for the two projects is worth Rs 451.28 crore.

  • Mahindra CIE Automotive is rising as its Q4FY23 net profit surges by 72.9% YoY to Rs 279.1 crore while its EBITDA margin expands by 160 bps YoY. The company’s revenue increases 18.4% YoY, led by healthy growth across its geographical segments. It shows up in a screener for stocks with high consistent returns over the past five years.

  • Tata Consumer Products is falling despite a 23.5% YoY rise in net profit to Rs 268.59 crore in Q4FY23. The company’s revenue has also increased by 14% as both Indian and international businesses grew. Sunil D’Souza, MD and CEO of the company, says it has managed to balance margins in a volatile macro environment in FY23.

  • Bajaj Auto’s Q4FY23 net profit rises 11.7% YoY to Rs 1,704.7 crore while revenue increases 12% YoY. The company states that a better product mix, strategic pricing and improved forex realisations offset the drop in overall sales volume driven by declining exports. The stock shows up in a screener for companies with no debt.

Riding High:

Largecap and midcap gainers today include NHPC Ltd. (44.30, 5.23%), Vodafone Idea Ltd. (6.55, 3.97%) and Indus Towers Ltd. (143.00, 3.62%).

Downers:

Largecap and midcap losers today include Ipca Laboratories Ltd. (701.40, -5.36%), Vedant Fashions Ltd. (1,246.80, -4.58%) and Crompton Greaves Consumer Electricals Ltd. (252.55, -2.66%).

Volume Rockets

33 stocks in BSE 500 are trading on high volumes today.

Top high volume gainers on BSE included Gujarat State Fertilizer & Chemicals Ltd. (153.30, 19.95%), Gujarat Alkalies & Chemicals Ltd. (733.50, 17.21%) and Gujarat Narmada Valley Fertilizers & Chemicals Ltd. (587.00, 10.55%).

Top high volume losers on BSE were Multi Commodity Exchange of India Ltd. (1,394.45, -6.26%), Ipca Laboratories Ltd. (701.40, -5.36%) and Rallis India Ltd. (191.10, -4.07%).

Gujarat State Petronet Ltd. (284.60, 7.15%) was trading at 33.8 times of weekly average. MMTC Ltd. (32.70, 9.00%) and Mahindra CIE Automotive Ltd. (385.00, 7.32%) were trading with volumes 31.3 and 18.4 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

9 stocks hit their 52-week highs, while 8 stocks were underachievers and hit their 52-week lows.

Stocks touching their year highs included - CCL Products India Ltd. (590.15, 3.25%), Glenmark Pharmaceuticals Ltd. (521.25, 0.60%) and Nestle India Ltd. (21,026.25, 1.75%).

Stocks making new 52 weeks lows included - Ipca Laboratories Ltd. (701.40, -5.36%) and PVR Ltd. (1,449.65, -1.96%).

12 stocks climbed above their 200 day SMA including Gujarat State Fertilizer & Chemicals Ltd. (153.30, 19.95%) and KIOCL Ltd. (196.25, 2.40%). 9 stocks slipped below their 200 SMA including Multi Commodity Exchange of India Ltd. (1,394.45, -6.26%) and Vedant Fashions Ltd. (1,246.80, -4.58%).

 
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The Baseline
25 Apr 2023
Five analyst picks with high upside
By Suhas Reddy

This week we take a look at five analyst picks with high upside

  1. Zomato: Motilal Oswal initiates a ‘Buy’ coverage on this internet software and services company with a target price of Rs 70. This indicates an upside of 20.8%. Analysts Mukul Garg, Raj Prakash Bhanushali and Pritesh Thakkar say, “The food delivery industry in India is all set to grow rapidly in the medium term, driven by intensifying internet penetration, rising consumption and growth in urbanization.” 

The analysts believe that the food delivery market has settled into a duopoly between Swiggy and Zomato, with Zomato having a market share of 55%. They expect the company to gain from the relatively nascent stage of the food delivery ecosystem in India. They also believe that Zomato’s loyalty program (Gold) will help the company  compete more equally with Swiggy. 

Garg, Bhanushali and Thakkar expect Zomato to turn profitable over FY25 despite the intensity of competition. With a dominant market share and strong growth in the food delivery business, the analysts expect Zomato to report a revenue CAGR of 29% over FY23-25. On Trendlyne, the overall consensus among analysts on the stock is ‘Buy’.

  1. Mahindra Logistics: Sharekhan upgrades its rating to a ‘Buy’ on this logistic services provider with a target price of Rs 502, indicating an upside of 38.1%. Analysts at Sharekhan, who recently interacted with Mahindra Logistics’ management, say that it is upbeat about end-user demand in the medium term, with the exception of e-commerce. The company expects its third-party logistics business to grow at 15-16% CAGR, which the analysts believe would yield better margins.

The analysts say, “The company is focused on the turnaround of the B2B express business of Rivigo.” They believe this step will enable the company to benefit in terms of synergies, resource optimisation and enhanced customer services. 

Mahindra Logistics is currently downsizing the Bajaj Electricals’ account by 80% on mutually agreed terms. The analysts believe that it has derived key takeaways in the form of learning, processes and capabilities from the account. 

  1. Reliance Industries: BoB Capital Markets maintains its ‘Buy’ rating on this refineries & petroleum products company but lowers its target price slightly to Rs 2,810 from Rs 2,840. This implies an upside of 18.2%. Analyst Kirtan Mehta expects the company’s EBITDA to witness healthy growth on a YoY basis in Q4FY23, led by the energy and consumer segments. He believes that the energy business will be supported “by a return to normal throughput, an uptick in the petrochemical margin, and potentially higher Russian crude usage that offsets the pullback in transportation cracks”. 

In the consumer business, Mehta sees growth from rising Jio subscribers, average revenue per user (ARPU) and steady footprint expansion. He anticipates market share gains and ARPU to rise after the firm launches its 5G services, affordable 5G smartphone and Jio AirFibre. The analyst expects the firm’s revenue to grow at a CAGR of 10.7% over FY22-24. 

  1. HDFC Bank: IDBI Capital maintains its ‘Buy’ rating on this bank with a target price of Rs 2,070. This indicates an upside of 24%. Following the release of the firm’s Q4FY23 results, analysts Bunty Chawla and Debesh Agarwala remain upbeat about its growth prospects. They point out that the bank’s net interest margin (NIM) remains stable and deposit growth has overtaken credit growth. They add that credit growth has been bogged down by a slowdown in the corporate book. The analysts also highlight the improvement in asset quality, which is led by better recoveries and a reduction in write-offs, as a key positive. 

Chawla and Agarwala state that the bank’s (NIM) remains stable as the rise in the cost of funds is proportional to the increase in yields in Q4FY23. Overall, they are “positive on HDFC Bank given its superior credit underwriting, structurally better NIM and the ability to maintain higher RoA among its peers”. The analysts expect the company’s net profit to grow at a CAGR of 13.4% over FY23-25. 

  1. Federal Bank: Keynote Capitals initiates coverage on this bank with a ‘Buy’ rating and a target price of Rs 164, implying an upside of 22.4%. Analyst Devin Joshi is optimistic about the bank given its expanding pan-India presence and strategic digital & fintech partnerships. He believes that “the bank's fintech strategy is yielding incremental benefits, including higher deposit growth, cost control, and improved fee income”. Joshi adds that the bank’s  loan book has seen strong growth during the first three-quarters of FY23, which contributed to a 56% YoY rise in net profit during the same period. 

The analyst notes that the bank’s cost-to-income ratio and asset quality have also improved. He expects the bank to maintain its healthy operational performance in the coming quarters and grow net profit at a CAGR of 41.1% over FY22-24. 

Note: These recommendations are from various analysts and are not recommendations by Trendlyne.

(You can find all analyst picks here)

 
Trendlyne Marketwatch
Trendlyne Marketwatch
25 Apr 2023
Market closes higher, Larsen & Toubro bags orders worth Rs 1,000-2,500 crore

Trendlyne Analysis

Nifty 50 closed at 17,769.25 (25.9, 0.2%) , BSE Sensex closed at 60,130.71 (74.6, 0.1%) while the broader Nifty 500 closed at 14,955.70 (25.6, 0.2%). Of the 1,951 stocks traded today, 962 were on the uptick, and 917 were down.

Indian indices switch between losses and gains on a volatile day of trade, with the Nifty 50 below the 17,800 mark. Anupam Rasayan India rises over 4% as it signs a letter of intent worth $46 million with an American multinational company.

Nifty Smallcap 100 trades in the green, outperforming the benchmark index. Nifty PSU bank trade sharply higher, led by heavyweights State Bank of India and Bank of Baroda.

Hardware Technology & Equipment, Commercial Services & Supplies and Utilities sectors are trading sharply higher, according to Trendlyne’s Sector dashboard.

European indices open lower, in line with major Asian indices amid weak global cues. European stocks open in the red, dragged by bank stocks as UBS’ net profit drops 52% YoY in Q1CY23. US indices futures also trade lower after closing mixed on Monday.

  • Money flow index (MFI) indicates that stocks like Glenmark Pharmaceuticals, Welspun India, FDC and Raymond are in the overbought zone

  • Mankind Pharma’s Rs 4,326.4 crore IPO gets bids for 14% of the available 2.8 crore shares on offer on the first day of bidding. The retail investor quota gets bids for 10% of the available 1.4 crore shares on offer. The IPO is entirely an offer for sale of Rs 4,326.4 crore.

  • Motilal Oswal gives a ‘Neutral’ rating on Navin Fluorine with a target price of Rs 4,700, citing the limited upside potential of the stock. The stock is trading near its 52-week high. It shows up in a screener of stocks with improving book value for the past two years.

  • S Krishnan, Managing Director and CEO of Tamilnad Mercantile Bank, says its advances will grow 12-15%, while deposit growth will be around 10% in FY24. The bank's net profit has risen 11.5% YoY to Rs 253.1 crore in Q4FY23.

  • HDFC Asset Management Co is falling despite its net profit rising 9.5% YoY to Rs 376.2 crore and revenue growing by 4.8% YoY. The company’s board has recommended a dividend of Rs 48 per equity share for FY23.

  • Commercial services & supplies, utilities and media sectors fall by more than 10% over the past 90 days.

  • IIFL Finance, Maruti Suzuki and Indus Towers' weekly average delivery volumes rise ahead of their Q4FY23 results tomorrow.

  • Ratings agency ICRA says that the Indian hotel industry’s revenue growth will be around 13-15% in FY24, driven by a recovery in demand from domestic leisure travel, business travel and events like the G20 summit. ICRA expects occupancy of premium hotels to touch 70-72% in FY24.

  • Larsen & Toubro's power transmission and distribution arm wins orders worth Rs 1,000-2,500 crore. The orders include the development of distribution infrastructure in Rajasthan, a power supply system order for the second phase of Chennai Metro, and an overseas order to supply, construct, test and commission a substation in the United Arab Emirates.

  • IPCA Laboratoriesand Crompton Greaves Consumer Electricals reach their 52-week lows of Rs 742.2 and Rs 252.3 per share respectively. IPCA has fallen 4.7% over the past month, while the other went down 11.7%.

  • KRChoksey maintains its ‘Buy’ rating on ICICI Bank with a target price of Rs 1,175. This indicates an upside of 28.9%. The brokerage is optimistic about the bank’s growth prospects given its strong operating performance, improving asset quality, and superior return ratios compared to its peers. It expects the firm’s net profit to grow at a CAGR of 18.6% over FY23-25.

  • Mahindra Lifespace Developers is rising as it wins a redevelopment project of a residential society at Malad, with expected revenue of Rs 850 crore. It shows up in a screener of stocks being overbought by the money flow index (MFI).

  • PSU bank stocks like UCO Bank, Bank of Baroda, Canara Bank and Central Bank of India are rising in trade. The broader sectoral index Nifty PSU Bank is also trading in the green.

  • Keshav Bhajanka, Executive Director at Century Plyboards, says that the company targets to grow 20% in FY24. He adds that Century has taken a 2% price hike in plywood due to an increase in timber prices.

  • Welspun India is rising as its board of directors plans to announce its Q4FY23 results and recommendation for dividends on April 27, along with considering a share buyback proposal. The company shows up in a screener for stocks that gained more than 20% over the past month.

  • Rakesh Jhunjhunwala's portfolio cuts stake in Bilcare to below 1% in Q4FY23 from a 7.4% stake held in Q3FY23.

  • Anupam Rasayan India rises as it signs a letter of intent worth $46 million with an American multinational company to supply new age specialty chemical advance intermediate for the next 5 years.

  • Century Textiles & Industries is falling as its Q4FY23 revenue marginally declines by 0.2% YoY to Rs 1,208.5 crore due to revenue from the textile business segment falling 26.8% YoY. On the other hand, net profit surges by 68.8% YoY on the back of a net gain worth Rs 134.2 crore made from the transfer of its leasehold land in Gujarat to Grasim Industries for Rs 215.9 crore.

  • Serum Institute of Life Sciences will convert its $150 million loan provided to Biocon Pharma into equity of Biocon Biologics. Kiran Mazumdar Shaw, Executive Chairperson of Biocon, says Serum’s investment in Biocon Biologics is valued at $6 billion.

    Nestle trades near its 52-week high after reporting a 25% YoY increase in net profit to Rs 736.64 crore. Its total sales also rise as both domestic sales and exports go up more than 20% YoY. Suresh Narayanan, Chairman and Managing Director, says that the robust growth in sales is because of balanced pricing, volume growth and product mix.

  • Stocks like Persistent Systems, Bank of Maharashtra and IndusInd Bank report a YoY and QoQ rise in net profit in Q4FY23.

  • JP Morgan says that IndusInd Bank’s core PPOP (pre-provision operating profit) has increased on the back of loan growth. The brokerage adds that IndusInd's gross slippage has risen to 2.4% in Q4, but the bank expects it to moderate to less than 2% in Q1FY24.

    Crompton Greaves Consumer Electricals' Chief Executive Officer (CEO) Mathew Job resigns to pursue other career interests, with effect from April 30, 2023. The company appoints Promeet Ghosh as the Managing Director and CEO, subject to the approval of shareholders.

  • Ipca Laboratories hits a 52-week low of Rs 751 in trade today following the announcement of its acquisition of a 33.4% stake in Unichem Laboratories for Rs 1,034.06 crore.

  • Tata Teleservices’ (Maharashtra) Q4FY23 net loss narrows to Rs 277.07 crore from Rs 280.6 crore in Q4FY22. Its revenue has increased marginally by 2.7%. It shows up in a screener for average financial performers.

  • Mankind Pharma raises Rs 1,297.9 crore from anchor investors ahead of its IPO by allotting 1.2 crore equity shares at Rs 1,080 per share. The investors include Canada Pension Plan, Government of Singapore, Nomura Funds and SBI Mutual Fund.

  • Persistent Systems’ Q4FY23 net profit rises 25.1% YoY to Rs 251.5 crore and EBIT margin expands by 140 bps YoY. Its revenue grows 37.6% YoY, driven by robust growth in the BFSI and Hi-Tech business verticals. The stock shows up in a screener for companies with net profits increasing sequentially for the past four quarters.

Riding High:

Largecap and midcap gainers today include Adani Green Energy Ltd. (931.15, 4.97%), Adani Transmission Ltd. (1,012.95, 4.96%) and Adani Total Gas Ltd. (935.25, 4.95%).

Downers:

Largecap and midcap losers today include Crompton Greaves Consumer Electricals Ltd. (259.45, -11.83%), Ipca Laboratories Ltd. (741.15, -10.33%) and HDFC Life Insurance Company Ltd. (529.75, -3.25%).

Volume Shockers

30 stocks in BSE 500 are trading on high volumes today.

Top high volume gainers on BSE included Rail Vikas Nigam Ltd. (104.60, 19.20%), Rites Ltd. (380.10, 8.69%) and Varroc Engineering Ltd. (281.55, 5.23%).

Top high volume losers on BSE were Crompton Greaves Consumer Electricals Ltd. (259.45, -11.83%), Ipca Laboratories Ltd. (741.15, -10.33%) and TCI Express Ltd. (1,403.85, -3.98%).

Tube Investments of India Ltd. (2,504.95, -2.09%) was trading at 11.1 times of weekly average. 3M India Ltd. (22,296.20, -0.52%) and Capri Global Capital Ltd. (645.80, -0.43%) were trading with volumes 9.3 and 6.9 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

13 stocks hit their 52 week highs, while 7 stocks were underachievers and hit their 52 week lows.

Stocks touching their year highs included - Aegis Logistics Ltd. (397.70, -2.49%), Bajaj Auto Ltd. (4,342.55, 0.24%) and Glenmark Pharmaceuticals Ltd. (517.65, 0.15%).

Stocks making new 52 weeks lows included - Ipca Laboratories Ltd. (741.15, -10.33%) and PVR Ltd. (1,478.60, 0.06%).

16 stocks climbed above their 200 day SMA including EPL Ltd. (165.75, 3.34%) and Zomato Ltd. (57.75, 3.12%). 6 stocks slipped below their 200 SMA including HDFC Life Insurance Company Ltd. (529.75, -3.25%) and Mastek Ltd. (1,703.60, -2.44%).

 
Trendlyne Marketwatch
Trendlyne Marketwatch
24 Apr 2023
Market closes higher, Bank of Maharashtra's Q4FY23 net profit jumps 2.4X YoY to Rs 840 crore

Trendlyne Analysis

Nifty 50 closed at 17,743.40 (119.4, 0.7%), BSE Sensex closed at 60,056.10 (401.0, 0.7%) while the broader Nifty 500 closed at 14,930.15 (83.1, 0.6%). Of the 1,990 stocks traded today, 1,014 were gainers and 908 were losers.

Indian indices extend the gains made in the morning session and close in the green. The volatility index, India VIX, rose above 11 at the close. India's crude steel production increased by 4.18% to 125 MT in FY23. Domestic consumption increased by 12.7% to 120 MT in FY23. 

Nifty Smallcap 100 and Nifty Midcap 100 closed in the green following the benchmark. Nifty Healthcare and Nifty Media closed lower than Friday’s levels. Nifty Bank closed sharply higher, led by industry heavyweights ICICI Bank and SBI Bank. Indusind Bank’s Q4FY23 profit increased by 50% YoY to Rs 2,040 crore, lower than analyst estimates by 1%. Its shares closed 1.34% lower than the previous close

Most European indices trade in the red except for Switzerland’s SMI trading higher. US indices futures trade flat as investors wait for earnings reports and commentary from tech giants like Microsoft, Amazon, Meta and Alphabet this week.

  • Relative strength index (RSI) indicates that stocks like Aurobindo Pharma, Navin Fluorine International, Glenmark Pharmaceuticals and Welspun India are in the overbought zone.

  • Nestle India, Bajaj Auto and Mahindra CIE Automotive rise 5.1%, 0.8% and 0.7% respectively in the past week, ahead of their Q4FY23 results.

  • IndusInd Bank’s Q4FY23 net profit rises 49.9% YoY to Rs 2,040.5 crore, while its consolidated net interest income grows by 17.2% YoY, led by the corporate and retail banking segments. The banks’ Gross and Net NPAs decline 72 bps and 5 bps YoY respectively.

  • Oil prices fall amid concerns of rising interest rates, a slowdown in the global economy and a weakening fuel demand outlook. Brent crude oil hovers around the $80-81 per barrel mark.

  • Zydus Lifesciences recieves US FDA approval for Icosapent Ethyl Capsules used to reduce triglyceride levels in adult patients with severe hypertriglyceridemia. The drug has annual sales of $1,316 million in the United States.

  • Bank of Maharashtra is rising after announcing its Q4FY23 results. The bank’s net profit jumps 2.4X YoY to Rs 840 crore, with net interest income rising 35.6%. Gross advances grow 30% with maximum contribution from the corporate and retail loans segment. NIM also expands 61 bps YoY to 3.78% in Q4.

  • Realty stocks like Indiabulls Real Estate, Prestige Estates Projects, Mahindra Lifespace Developers, DLF and Godrej Properties are rising in trade. All the constituents of the broader sectoral index Nifty Realty are also trading in the green.

  • Tamilnad Mercantile Bank is rising as its Q4FY23 net profit increases 11.5% YoY to Rs 253.1 crore and net interest income grows by 8% YoY, led by the retail banking segment. The bank’s Gross NPA and Net NPA decline by 30 bps and 33 bps YoY respectively in Q4.

  • Rohan Verma, CEO and Executive Director at C.E. Info Systems (MapmyIndia), says the company’s order book has increased to Rs 918 crore in Q4FY23. He adds that the EBITDA margin will exceed 40% in FY24.

  • Cyient touches its 52-week high of Rs 1,230.2 in a flat market. The surge follows the company's Q4FY23 earnings report, which shows a rise in revenue, deal wins and EBIT. The stock has gained 12% in the past week and 44.5% in the past year.

  • Bajaj Finance, Maruti Suzuki and L&T Technology Services fall 0.2%, 2.3% and 3.1% respectively over the past week, ahead of their Q4FY23 results on Wednesday.

  • Arun Misra, CEO of Hindustan Zinc, says that the company will meet the FY24 volume guidance of 750 tonnes for silver. He adds that it has been impacted by high imported coal prices in FY23 and expects international coal prices to cool down to $130 per tonne in FY24.

  • HDFC Securities maintains its ‘Buy’ rating on Navin Fluorine International with a target price of Rs 5,471. This implies an upside of 16.1%. The brokerage remains positive about the company due to its long-term contracts, rising share of high-margin products in the sales mix, capacity expansion, and strong R&D infrastructure.

  • Sun Pharmaceuticals enters a consent decree with the US FDA to undertake corrective actions at its Mohali facility before releasing any more final products in the US. The shipments from Mohali will resume once the measures are in place. The stock is down nearly 2% in trade.

  • Solar Industries bags a contract worth Rs 212 crore from the Ministry of Defence for the supply of loitering munition. The stock shows up in a screener for companies with high TTM EPS growth.

  • PSU banks like Punjab & Sind Bank, Bank of Maharashtra, UCO Bank, Bank of India and Canara Bank are rising in trade. All the constituents of the broader sectoral index Nifty PSU Bank are also trading in the green.

  • Morgan Stanley maintains its ‘Underweight’ rating on Asian Paints and Kansai Nerolac. The brokerage says competition may intensify with new entrants.

  • Wipro is rising as its board of directors considers a proposal for a share buyback. The company will announce the decision along with its Q4FY23 results on April 27.

  • Maruti Suzuki is falling as it is recalling 7,213 cars over a defect in the vacuum pump that assists its brake function. The company shows up in a screener for upcoming results with rising delivery volumes.

  • Ashish Kacholia buys a 0.1% stake in Gravita India in Q4FY23. He now holds 2.2% of the company.

  • CLSA maintains its ‘Buy’ rating on ICICI Bank with a target price of RS 1,200. The brokerage says the bank continues to be its top pick and believes there is a certainty for high earnings over the coming three years. It has increased the earnings estimates by 2-4%.

  • Macrotech Developers (Lodha) is rising as its Q4FY23 net profit increases 39% YoY to Rs 744.3 crore. Its FY23 pre-sales rise 34% YoY. The company declares a 1:1 bonus issue subject to shareholders’ approval. The stock has gained 7% in the past month.

  • Rakesh Jhunjhunwala's portfolio adds Sun Pharma Advanced Research to its holdings in Q4FY23 by buying a 1.9% stake in the company.

  • YES Bank is falling as its Q4FY23 net profit falls 45% YoY to Rs 202 crore due to a 2.3X YoY increase in provisions. However, the bank's net interest income increases 16% YoY, and profit rises 3.9X QoQ. It shows up in a screener of stocks with a decrease in NPAs in recent results.

  • ICICI Bank is rising as its Q4FY23 net profit rises 30% YoY to Rs 9,122 crore. Net interest income also increases 40% YoY and asset quality improves as gross and net NPAs fall 79 bps and 28 bps YoY respectively. Sandeep Batra, Executive Director, says that with the peaking of repo rates, the bank’s income has peaked as loan re-pricing was faster than deposits. He adds that net interest margins have near-peaked and will fall in the coming quarters.

  • Reliance Industries reports a 19% YoY rise in Q4FY23 net profit to Rs 19,299 crore, with revenue increasing by 2.1% YoY driven by growth in its O2C (oil to chemicals) business. Mukesh Ambani, Chairman and Managing Director, says that the O2C segment has posted the highest operating profit despite global uncertainties, and the oil and gas segment is likely to contribute to 30% of India’s domestic gas production.

Riding High:

Largecap and midcap gainers today include HDFC Life Insurance Company Ltd. (547.55, 6.67%), Indian Railway Finance Corporation Ltd. (29.55, 5.35%) and Tata Consumer Products Ltd. (732.55, 4.59%).

Downers:

Largecap and midcap losers today include Adani Green Energy Ltd. (887.10, -3.18%), YES Bank Ltd. (15.70, -3.09%) and Adani Transmission Ltd. (965.10, -3.00%).

Movers and Shakers

21 stocks in BSE 500 are trading on high volumes today.

Top high volume gainers on BSE included Rail Vikas Nigam Ltd. (87.75, 13.23%), Indiabulls Real Estate Ltd. (63.50, 11.50%) and Bank of Maharashtra (30.10, 8.08%).

Top high volume losers on BSE were Computer Age Management Services Ltd. (2,034.65, -1.44%), C.E. Info Systems Ltd. (996.75, -1.24%) and 3M India Ltd. (22,150.00, -0.89%).

Aegis Logistics Ltd. (407.85, 5.46%) was trading at 11.4 times of weekly average. Alembic Pharmaceuticals Ltd. (541.80, 0.86%) and HDFC Life Insurance Company Ltd. (547.55, 6.67%) were trading with volumes 9.3 and 8.7 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

10 stocks made 52-week highs, while 5 stocks tanked below their 52-week lows.

Stocks touching their year highs included - Aegis Logistics Ltd. (407.85, 5.46%), Bajaj Auto Ltd. (4,332.10, 0.55%) and Zydus Lifesciences Ltd. (516.50, -0.43%).

Stocks making new 52 weeks lows included - PVR Ltd. (1,477.70, -1.41%) and Aavas Financiers Ltd. (1,558.05, -1.33%).

12 stocks climbed above their 200 day SMA including HDFC Life Insurance Company Ltd. (547.55, 6.67%) and Bombay Burmah Trading Corporation Ltd. (977.85, 5.72%). 13 stocks slipped below their 200 SMA including PI Industries Ltd. (3,112.95, -2.41%) and Sona BLW Precision Forgings Ltd. (457.80, -1.83%).

 
Trendlyne Marketwatch
Trendlyne Marketwatch
21 Apr 2023
Market closes flat, Hindustan Zinc's net profit falls 11.8% YoY to Rs 2,583 crore in Q4

Trendlyne Analysis

Nifty 50 closed at 17,624.05 (-0.4, 0%), BSE Sensex closed at 59,655.06 (22.7, 0.0%) while the broader Nifty 500 closed at 14,847.10 (-14.7, -0.1%). Of the 1948 stocks traded today, 741 were gainers and 1138 were losers.

Indian indices recoup the losses made in the afternoon session and close flat on a volatile day of trade. The volatility index, India VIX, drops below 11 at the close. According to the data from the oil ministry, state-run oil companies spent Rs 1,14,000 crore on capex in FY23. An increase of 2.6% from the initial outlay for capex.

Nifty Smallcap 100 and Nifty Midcap 100 closed in the red, following the benchmark. Nifty Realty and Nifty Auto closed sharply lower than Thursday’s levels. Nifty IT closed in the green, led by industry heavyweight TCS and Wipro.

Most European indices trade in the green, despite major Asian indices closing lower today. S&P Global’s preliminary UK service business activity index for April jumped to 54.9 against 52.9 in March.

  • Apollo Hospitals Enterprise sees a long buildup in its March 29 future series as its open interest rises 11.6% with a put-call ratio of 0.68.

  • Hindustan Zinc reports a fall in net profit by 11.8% YoY to Rs 2,583 crore in Q4FY23 because of a 2.6X YoY surge in finance costs. Power and fuel costs rise YoY but decline 16% QoQ. Revenue also falls 3.8% on the back of decrease in revenue from zinc and lead metals.

  • PNC Infratech is rising as it bags an order worth Rs 819 crore from the Ministry of Road Transport & Highways to construct a four-lane highway in Uttar Pradesh. The stock shows up in a screener for companies with their book value per share improving over the past two years.

  • Power Finance Corp sanctions a Rs 633 crore loan to Gensol Engineering for the purchase of 5,000 passenger electric vehicles (EV) and 1,000 cargo EVs. The passenger EVs will be leased to BluSmart Mobility, which will use them to expand the number of ride-hailing cabs.

  • Bajaj Auto and Carborundum Universal hit their new 52-week highs of Rs 4,337 and Rs 1,078.7 respectively, with the former rising 13.29% in the past month and the other 10.9%.

  • Forest materials, healthcare equipment & supplies and hotels, restaurants & tourism sectors rise over 2.4% over the past week.

  • ICICI Bank is expected to report a 32.6% YoY increase in net profit and a 29% YoY rise in net interest income for Q4FY23, according to reports. The bank will announce its results on Saturday.

  • PSU banks like Central Bank of India, Bank of India, Indian Overseas Bank, UCO Bank and Indian Bank are falling in trade. All constituents of the broader sectoral index Nifty PSU Bank are also trading in the red.

  • Aavas Financiers falls in trade on reports of its Managing Director, Sushil Agarwal, selling a 1.8% stake in the company. The stock has touched its 52-week low in trade today.

  • Reports suggest that the Centre may not extend the subsidy scheme on EVs (FAME) beyond March 2024. Rajiv Bajaj, Managing Director of Bajaj Auto, says the withdrawal of subsidies will not have a major impact in the long term.

  • According to reports, the brokerage firm UBS upgrades its rating on Jubilant FoodWorks to ‘Buy’. It believes that the company is trading at an attractive valuation. The brokerage is positive about the company’s prospects given its aggressive store addition plans, improving supply chain, superior operational efficiencies, and focus on new brands.

  • Tata Motors, Hindustan Aeronautics and InterGlobe Aviation (Indigo) see a change in FII holdings by more than 1.5% QoQ in Q4FY23. Mutual fund holdings in Tata Motors and Indigo have also seen a 2.1% change in Q4.

  • ICICI Securities maintains its ‘Buy’ rating on Tata Communications but lowers its target price to Rs 1,510 from Rs 1,640 due to higher input costs. This implies an upside of 22.2%. The brokerage believes that the firm’s improving order book will lead to strong revenue growth and margin expansion in the coming quarters.

  • Infosys, ICICI Lombard General Insurance and Schaeffler India underperform their industries in the past 90 days.

  • Vodafone Idea is up 6% in trade today as Kumar Mangalam Birla returns to the board as a non-executive and non-independent Additional Director with effect from April 20.

  • Rallis India,Tata Consumer Products and Dalmia Bharat's weekly average delivery volumes rise ahead of their Q4FY23 results on Tuesday.

  • Nuvama Institutional Equities maintains its ‘Buy’ rating on Tata Consumer Products with a target price of Rs 865. The brokerage expects the company’s volume to grow 4% YoY in Q4FY23 and adds that the measures taken to improve tea volume will be positive.

  • Finolex Cables announces setting up a plant at the Urse facility in Pune for Rs 290 crore. The plant will manufacture optical fibre preforms and expand its fibre drawing capacity. The stock is trading near its 52-week high.

  • Realty stocks like Oberoi Realty, Macrotech Developers, Indiabulls Real Estate, Phoenix Mills and DLF are falling in trade. The broader sectoral index Nifty Realty is also trading in the red.

  • JP Morgan and Goldman Sachs maintain their ‘Neutral’ rating on ICICI Prudential Life, while Morgan Stanley continues to retain its 'Overweight' stance. According to the brokerages, Q4 results beat estimates, driven by premiums and high-value transactions.

  • Porinju Veliyath sells a 0.2% stake in Duroply Industries in Q4FY23. He now holds a 6.8% stake in the company.

  • Rakesh Jhunjhunwala's portfolio reduces stake in Dishman Carbogen Amcis to below 1% in Q4FY23, from 1.6% in Q3FY23.

  • JP Morgan downgrades its rating on Tech Mahindra and Mphasis to ‘Underweight’ from ‘Neutral’ and also cuts the target price. The brokerage expects the companies will be impacted by the weakness in the BFSI and telecom verticals in Q4.

  • ICICI Prudential Life Insurance’s consolidated Q4FY23 net profit rises 25.9% YoY to Rs 235.6 crore, with net premiums increasing 11.2%. Its value of new business grows 28% YoY in FY23 and margin expands 400 bps. It shows up in a screener of stocks that declared results in the past two days with YoY and QoQ net profit growth.

  • Siemens, through its consortium with Rail Vikas Nigam, receives two orders from the Gujarat Metro Rail Corp. The orders involve equipping Surat Metro Phase 1 and Ahmedabad Metro Phase 2 with rail electrification technologies. Siemens’ share as part of the consortium is Rs 678 crore.

  • Cyient touches a 52-week high in early trade as its Q4FY23 net profit rises 4.6% QoQ to Rs 163.2 crore. The company’s revenue has increased by 8.2% because of an increase in revenue across both services and design-led manufacturing segments. It also won five deals worth $185 million in Q4FY23. The board announced a final dividend of Rs 16 per share for FY23.

  • HCL Technologies’ Q4FY23 net profit rises 10.9% YoY to Rs 3,983 crore and revenue increases by 17.7% YoY driven by healthy growth across all its business segments. The company bags large deals with a total contract value of $2.1 billion. Its last twelve-month attrition rate falls by 240 bps YoY to 19.5%.

Riding High:

Largecap and midcap gainers today include Vodafone Idea Ltd. (6.45, 6.61%), Delhivery Ltd. (357.25, 5.98%) and Zomato Ltd. (56.05, 3.41%).

Downers:

Largecap and midcap losers today include Oberoi Realty Ltd. (873.35, -4.40%), Gland Pharma Ltd. (1,311.20, -3.90%) and Macrotech Developers Ltd. (907.80, -3.62%).

Movers and Shakers

16 stocks in BSE 500 are trading on high volumes today.

Top high volume gainers on BSE included FDC Ltd. (290.00, 6.99%), DCM Shriram Ltd. (854.90, 6.94%) and Vodafone Idea Ltd. (6.45, 6.61%).

Top high volume losers on BSE were Brightcom Group Ltd. (12.05, -4.74%), Sterling and Wilson Renewable Energy Ltd. (296.60, -3.43%) and FSN E-Commerce Ventures Ltd. (120.60, -2.55%).

Tata Investment Corporation Ltd. (2,157.30, 4.48%) was trading at 15.0 times of weekly average. Cyient Ltd. (1,159.65, 6.27%) and Mahindra Holidays & Resorts India Ltd. (301.00, 3.47%) were trading with volumes 14.5 and 6.7 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

9 stocks took off, crossing 52-week highs, while 2 stocks tanked below their 52-week lows.

Stocks touching their year highs included - Bajaj Auto Ltd. (4,308.30, -0.14%), Zydus Lifesciences Ltd. (518.75, 0.98%) and Carborundum Universal Ltd. (1,057.65, 1.97%).

Stocks making new 52 weeks lows included - Aavas Financiers Ltd. (1,579.00, -5.34%) and FSN E-Commerce Ventures Ltd. (120.60, -2.55%).

13 stocks climbed above their 200 day SMA including Westlife Foodworld Ltd. (704.25, 3.19%) and Lupin Ltd. (695.15, 1.59%). 18 stocks slipped below their 200 SMA including Oberoi Realty Ltd. (873.35, -4.40%) and La Opala RG Ltd. (358.70, -3.60%).

 
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The Baseline
21 Apr 2023
Five Interesting Stocks Today
  1. Angel One: This broking company’s stock rose over 5% intraday on Tuesday, in response to its Q4FY23 results. Angel One’s stock had risen for eight consecutive sessions in anticipation of good results. Its Q4 net profit has increased 30% YoY to Rs 266.9 crore, beating Forecaster estimates by 11%.  The stock made into a screener of companies with good quarterly revenue and net profit growth in recent results.

Angel One’s revenue also rose 23% YoY, beating Forecaster estimates by 3%. All-time high average daily trading value (ADTV) from its retail derivatives segment and higher-than-expected interest income drove revenue. The F&O segment’s revenue contribution in gross broking revenue increased to 87% in Q4FY23 from 82% in Q3FY23. However, with a 25% increase in securities transaction tax (STT) for options and futures trades starting in April, FnO volumes could come under pressure.  

In Q4, Angel One’s gross client acquisition fell 12% YoY due to a slowdown in the addition of new demat accounts, which reached pre-Covid levels for top discount brokerages like Zerodha. But Angel’s market share rose 176 bps YoY to 12%, with the top five players capturing nearly 60% of the overall market share.

  1. Tata Chemicals: This commodity chemicals manufacturer fell 5.9% in trade on Tuesday with a 3.15X surge in volume. This dip in the stock came after the company announced a price cut of 3-4% on its light and dense soda ash across India on April 17. The price cut was in response to  declining soda ash prices in China, which started in mid-March after the news of a substantial capacity addition in Inner Mongolia from May 2023.

If the Chinese capacity expansion plans move forward as projected, it could result in moderation of soda ash prices in the near-to-medium term. This could potentially lower the company’s profitability.

According to reports, Kotak Institutional Equities expects the impact of the price cuts to be offset by lower coal prices. The brokerage also anticipates robust Q4FY23 earnings on the back of better realisations on US exports, upward revisions of US domestic contract prices, and lower energy costs. Trendlyne’s Forecaster predicts a 21% YoY rise in the firm’s net profit in Q4FY23, and the consensus recommendation on the company is a ‘Buy’.

The company is focused on capacity expansions, increasing plant utilisation and improving cost efficiencies to meet the expected growth in demand, aided by the re-opening of China and the emergence of new glass applications.

  1. One97 Communications (Paytm): This internet software & services stock was up nearly 2% in trade on Thursday after Motilal Oswal initiated coverage with a ‘Buy’ rating and a target price upside of 34%. This comes after the company released its Q4 operational update, which reported growth across metrics like gross merchandise value and loan disbursements. Currently, the management is working towards improving the quality of its loan book and expanding its customer and merchant base. However, the company may face stiff competition from Jio Financial Services (JFSL) once it lists on the bourses in September 2023. A report from Macquarie suggests that JFSL may be directly competing with Paytm and Bajaj Finance.

On a positive note, the payment industry is expected to grow to $16 trillion, and Paytm is well-positioned to benefit from the surge in digital payments, which is expected to increase threefold by 2026. In the near term, payment revenue may grow at a 21% CAGR over FY23-25E. Motilal Oswal says that Paytm will achieve EBITDA break-even by FY25. However, its inability to get RBI approval to onboard new customers in the payment bank and secure a payment aggregator license, which is critical for long-term growth, remains a major risk. The stock features in a screener where brokers have upgraded their recommendations and target price in the past three months.

The stock has gained 23.4% in the last three months. Trendlyne’s Forecaster estimates a 13% increase in revenue in Q4FY23.

  1. ICICI Lombard General Insurance: This general insurance company saw a decline of  over 4% on Wednesday as brokerages lowered the target price following its Q4 results. This fall was also due to the lower-than-expected net premium earned by the company, which was primarily due to muted growth in the motor segment. ICICI Lombard is currently trading near its 52-week low.

The company’s profit has risen 40% YoY to Rs 436.9 crore, beating Trendlyne’s Forecaster estimates by 12%. The surge in profit was supported by a fall in underwriting losses, which stood at Rs 250.78 crore, down from Rs 308.98 crore in Q4FY22. Premium earned stood at Rs 3,726 crore (up 12% YoY) during the quarter.

Bhargav Dasgupta, Managing Director & CEO of ICICI Lombard, said that the health insurance vertical remained the fastest-growing segment for the company, while the motor segment witnessed a slowdown.  He added that the company expects motor OD (own damage) pricing to improve in the medium term.

Post the result, Emkay Global reiterated its ‘Buy’ rating on the stock but cut the target price by 6%  to Rs 1,400 per share from Rs 1,490 earlier. ICICI Direct has also reduced the target price by 3.8%. Analysts believe the competition intensity in the motor segment remains elevated for ICICI Lombard and regulatory changes could lead to near-term volatility. They are skeptical about the management’s guidance to achieve a 102% combined operating ratio by FY25.

  1. Dalmia Bharat: Thiscement and construction company is the fourth-largest manufacturer in India and has been in thenews recently for the sale of its non-core business, Dalmia Refractories, for Rs 800 crore. Dalmia is increasingly divesting its allied and non-core businesses. In FY22, it divested its 5.2% stake in IEX for Rs 614 crore and its Hippo stores for Rs 155 crore.

The firmacquired the cement assets of JP Associates for Rs 5,666 crore, which has added another 9.4 MT capacity to the existing 37 MT. Dalmia Bharat targets to reach 75 MT by FY27 and 110 MT by FY31. To fund its capex plans, it is planning to sell its remaining 15% stake in IEX and its refractory business in China and Germany. Some of the proceeds from the sale will be utilized for debt reduction.

The cost optimization initiatives undertaken by Dalmia Bharat, along with higher price realisations, are driving margin expansion. Also, with 2024 being an election year, the government spending on infra projects is expected to be high. The management expects the demand for infrastructure and housing will drive decadal high growth in cement. The stock hasgained 10% in the past month and shows up in thescreener for growth in net profit with an increasing profit margin

Axis Securities is optimistic about Dalmia Bharat’s strategy to divest its non-core businesses and expand its capacity, as it aligns well with the current macro-outlook for cement demand. Also, the recent drop in fuel costs and price hikes undertaken by cement firms are expected to support margin expansion.

 
Trendlyne Marketwatch
Trendlyne Marketwatch
20 Apr 2023
Market closes flat, Fortis Healthcare to acquire Medeor Hospital for Rs 225 crore

Trendlyne Analysis

Nifty 50closed at 17,624.45 (5.7, 0.0%), BSE Sensex closed at 59,632.35 (64.6, 0.1%) while the broader Nifty 500 closed at 14,861.75 (4.9, 0.0%). Of the 1,939 stocks traded today, 980 were in the positive territory and 896 were negative.

Indian indices switched between losses and gains throughout the day and closed flat. The benchmark Nifty 50 index closed below the 17,650 mark. One97 Communications (Paytm) closed nearly 2% higher after Motilal Oswal gave a ‘Buy’ rating to the stock with a target price upside of 34% to Rs 865.

Nifty Midcap 100 and Nifty Smallcap 100 closed marginally higher, following the benchmark index. Nifty Infra and Nifty Bank closed above their Wednesday closing levels. Investors look ahead to HCL Tech’s Q4FY23 results announcements, to be announced later today.

Major Asian indices closed flat or lower amid weak global cues. European stocks traded in the red, in line with US indices futures, which also traded lower. Brent crude oil futures traded lower for a third straight trading session despite a decline in US crude inventories as traders assess the impact of interest rate hikes on crude oil demand.

  • Money flow index (MFI) indicates that stocks like Dr. Reddy's Laboratories, Glenmark Pharmaceuticals, Prism Johnson and Divi's Laboratories are in the overbought zone

  • Ion Exchange announces a share split in the ratio of 1:10, subject to the approval of its shareholders. This means that every share with a face value Rs 10 will be split into 10 shares, each with a face value Re 1. The stock is up 2% and is trading near its 52-week high.

  • Jefferies maintains its ‘Buy’ rating on Medanta with a target price of Rs 630. The brokerage says Lucknow is an emerging healthcare hub, and the ramp-up in the region will aid revenue and margin growth for Medanta.

  • Promoter Vedanta pledges 10.32 crore shares, or a 2.4% stake, in Hindustan Zinc to secure a term loan worth Rs 1,500 crore. The loan is for general business purposes, which includes debt repayment and capex.

  • Ethos touches a 52-week high in trade today after announcing the launch of Swiss brand watches by Laurent Ferrier in India. The stock is up 3% in a weak market.

  • Retailing stocks like Trent, Metro Brands, Relaxo Footwears and Shoppers Stop are rising in trade. The overall retailing sector is also trading in the green.

  • One97 Communications (Paytm) is up 2.3% in trade as Motilal Oswal gives a ‘Buy’ rating to the stock with a target price upside of 34% to Rs 865. The reason for the upside is an increase in gross merchandise value and monthly transacting users reported in its Q4 business update. The proportion of financial business in revenue has also increased from 4% in FY19 to 19% in 9MFY23. The brokerage expects payment revenue to grow at a CAGR of 21% over FY23-25.

  • Fortis Healthcare inks a pact with VPS Group to acquire its Medeor Hospital in Manesar for Rs 225 crore. The hospital has a potential bed capacity of 350 beds and is expected to be operational in nearly 9 months. The consensus recommendation from eight analysts on the stock is ‘Buy’.

  • Reports suggest that under-recoveries on diesel have come down to Rs 1 per litre from a peak of Rs 40, providing relief to oil marketing companies. However, a revision in retail fuel prices is unlikely in the near future.

  • Nirmal Bang expects Dabur India’s net profit to fall 26% QoQ and net sales to decline 12% in Q4FY23. The stock has gained 5% in the past year. It shows up in a screener of stocks with low Piotroski scores.

  • Varun Beverages, Zydus Lifesciences, UNO Minda and Timken India are trading below their third support or S3 level.

  • Pharma stocks like Gland Pharma, Divi's Laboratories, Zydus Lifesciences and Dr. Reddy's Laboratories are falling in trade. The broader sectoral index Nifty Pharma is also trading in the red.

  • According to a poll of economists, India’s economy will likely grow at 6% in FY24, down from 7% in FY23, due to slower global growth and higher interest rates.

  • HDFC Asset Management, Can Fin Homes and Indus Towers fell 0.7%, 0.9% and 1.2% respectively over the past week, ahead of their Q4FY23 results in the coming week.

  • Titagarh Wagons touches an all-time high after Mahima Stocks acquires a 1.65% stake in the company. The stock has risen more than 7% in trade today and gained 102.3% in the past six months.

  • Hiral Chandrana, Global CEO at Mastek, says the company's growth in Q4FY23 has been mostly organic, and adds that the momentum in deals continues to be strong. The company is up by more than 13% in trade today as its net profit has grown 13% QoQ to Rs 72.6 crore.

  • Small Cap World Fund sells a 1.94% stake (22.3 lakh shares) in Bajaj Electricals for Rs 233.7 crore in a bulk deal on Wednesday. The shares have been picked up by Norges Bank.

  • Hindustan Zinc, YES Bank and Bank of Maharashtra rise 4.3%, 7.5% and 6.4% in the past week, ahead of their Q4FY23 results.

  • NBCC is rising as it bags new orders worth Rs 207.9 crore for the public works department in Puducherry. The stock has gained 46% from its 52-week low.

  • Brent crude oil prices trade around the $82 per barrel mark. Palm oil prices fall for the second consecutive session due to a decline in crude oil and rival edible oil prices. Iron Ore futures fall amid supply concerns.

  • Ashish Kacholia buys a 0.2% stake in Garware Hi-Tech Films in Q4FY23. He now holds 4.2% of the company.

  • Tata Motors rises as its subsidiary, Jaguar Land Rover (JLR), announces an investment of 15 billion pounds over the next five years to introduce new models and improve technology. The company plans to transform the Halewood plant in the UK into a complete electric vehicle production facility. Adrian Mardell, JLR’s interim CEO, says that this investment will help the company achieve net zero carbon emissions by 2039.

  • Dolly Khanna sells a 0.4% stake in Monte Carlo Fashions in Q4FY23. She now holds a 2.1% stake in the company.

  • CLSA identifies Jindal Steel & Power and Tata Steel as its preferred picks among Indian steel companies. The brokerage says that improving demand in China and softening of coking coal prices could lead to re-rating.

  • Porinju Veliyath adds Ansal Properties & Infrastructure to his portfolio in Q4FY23. He buys a 1.1% stake in the company.

  • Prestige Estates Projects trades flat after reporting a 25% YoY increase in sales to Rs 12,930.9 crore in Q4FY23, with quarterly collections increasing 12%. The company plans to double its sales in the next three years. It shows up in a screener of stocks where mutual funds have increased their shareholdings in the past month.

  • ICICI Securities is falling as its Q4FY23 net profit goes down by 22.8% YoY to Rs 262.6 crore on the higher cost of funds. However, revenue has increased by 35.5% as total loans grew by 88% in Q4. Vijay Chandol, MD & CEO, says that the medium to long-term growth story for the industry remains intact and the company will make relevant investments in areas like F&O, loan distribution, insurance products and wealth management.

  • Tata Communications’ Q4FY23 net profit falls 17% QoQ to Rs 326.03 crore. Revenue increases marginally by 1% as transformation services and real estate segments see a revenue rise in Q4. Other segments like voice solutions, data services and payment solutions see their revenues decline. Consensus recommendation on the stock remains ‘Buy’.

Riding High:

Largecap and midcap gainers today include JSW Energy Ltd. (259.45, 4.60%), Adani Power Ltd. (195.80, 4.54%) and Cummins India Ltd. (1,559.90, 3.92%).

Downers:

Largecap and midcap losers today include Divi's Laboratories Ltd. (3,203.10, -4.17%), Varun Beverages Ltd. (1,381.75, -4.05%) and Gland Pharma Ltd. (1,364.45, -3.71%).

Movers and Shakers

23 stocks in BSE 500 are trading on high volumes today.

Top high volume gainers on BSE included Mastek Ltd. (1,786.20, 12.53%), Borosil Renewables Ltd. (481.00, 6.96%) and Indigo Paints Ltd. (1,135.95, 6.36%).

Top high volume losers on BSE were Alok Industries Ltd. (11.95, -7.00%), Aavas Financiers Ltd. (1,668.10, -5.21%) and ICICI Securities Ltd. (439.95, -4.58%).

Thermax Ltd. (2,302.90, 3.78%) was trading at 8.5 times of weekly average. Metro Brands Ltd. (845.50, 6.03%) and Bajaj Electricals Ltd. (1,080.15, 0.34%) were trading with volumes 7.5 and 7.4 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

5 stocks took off, crossing 52-week highs, while 2 stocks tanked below their 52-week lows.

Stocks touching their year highs included - Bajaj Auto Ltd. (4,314.35, 1.14%), Carborundum Universal Ltd. (1,044.00, 6.32%) and ITC Ltd. (400.30, 0.39%).

Stocks making new 52 weeks lows included - Marico Ltd. (471.75, 0.77%) and Orient Electric Ltd. (226.45, 2.03%).

16 stocks climbed above their 200 day SMA including Mastek Ltd. (1,786.20, 12.53%) and Metro Brands Ltd. (845.50, 6.03%). 15 stocks slipped below their 200 SMA including Timken India Ltd. (2,935.85, -3.09%) and Schaeffler India Ltd. (2,775.85, -2.77%).

 
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The Baseline
20 Apr 2023
Screener of the week: Stocks with high RSI, positive revenue estimates that have outperformed Nifty 50

As India heads into an election year in 2024, the government’s budgetary spend towards infrastructure development is expected to increase significantly. This is good news for cement, construction and Infra stocks, which stand to benefit the most. 

This screener reflects companies in this sector which are likely to see revenue growth of over 10% YoY in Q4FY23 and have outperformed the Nifty 50 in the past month. These stocks have also seen their relative strength index (RSI) rise above 50.

Industries likecement and cement products,construction and engineering andheavy electrical equipment feature in the screener. Major stocks includeMTAR Technologies,RHI Magnesita India, GE T&D India, Dalmia Bharat and HG Infra Engineering.

MTAR Technologies is expected to see the highest revenue growth of 96.4% YoY in Q4FY23, according to Trendlyne’s forecaster.Edelweiss reports that the company has received fresh orders of Rs 140 crore, taking the total order book to Rs 1,000 crore at the end of FY23. 

Forecaster estimates GE T&D India’s quarterly revenue to increase by 10.1% YoY in Q4FY23. Meanwhile, ICICI Securities predicts that the company will benefit from margin expansion aided by lower raw commodity prices and the government’s increased focus on renewable power evacuation, which will lead to bottom-line growth for this industrial machinery company. 

Dalmia Bharat is expected to see its Q4FY23 revenue grow by 13.7% YoY according to forecaster estimates. Axis Direct says that the company’s divestment plan of its non-core business coupled with its recent acquisition of JP Associates Cements, gels well with its strategy to focus on its core business.

You can find more screeners here.

 
Trendlyne Marketwatch
Trendlyne Marketwatch
19 Apr 2023
Market closes lower, IndusInd Bank signs agreement worth $100 million with a Japanese bank

Trendlyne Analysis

Nifty 50 closed at 17,618.75 (-41.4, -0.2%), BSE Sensex closed at 59,567.80 (-159.2, -0.3%) while the broader Nifty 500 closed at 14,856.90 (-40.1, -0.3%). Of the 1,942 stocks traded today, 940 showed gains, and 946 showed losses.

Indian indices extended their losses and closed in the red. The volatility index, India VIX, rose above 12 at the close. Air passenger traffic increased by 51.7% in Q4FY23. Indigo dominates, with 56.8% market share.

Nifty Smallcap 100 and Nifty Midcap 100 closed in the red, following the benchmark. Nifty Pharma and Nifty Metal closed higher than Tuesday’s levels. Nifty IT closed sharply lower, led by industry heavyweight Infosys and HCL Tech. AU Small Finance Bank says RBI grants licence to act as authorized dealer to deal in foreign exchange.

Most European indices trade in the red, tailing Asian indices which closed lower today. UK CPI numbers for March at 10.1%, housing and household services (electricity, gas and other fuels) and food & non-alcoholic beverages major driving force. US indices futures trade in the red, indicating a negative start.

  • Relative strength index (RSI) indicates that stocks like Aurobindo Pharma, Dr. Reddy's Laboratories, DLF and Zydus Lifesciences are in the overbought zone.

  • Anuj Kathuria, President of JK Tyre & Industries, says that the company's ability to reduce tyre prices is limited in the current scenario. He adds that falling crude prices may help in reducing input costs. The stock is 2% up in trade today.

  • Mahindra Lifespace Developers, Rallis India and Tata Consumer Products fall 1.9%, 1% and 2.3% respectively over the past week, ahead of their Q4FY23 results in the coming week.

  • United Breweries trades in the green, driven by Heineken’s Q1CY23 results. In India, Heineken has reported high single-digit revenue growth on the back of volume growth and pricing. This is expected to improve UBL’s volume growth and EBITDA.

  • IndusInd Bank enters a long-term loan agreement worth $100 million with Japan Bank for International Co-operation. The funds raised will be used by IndusInd Bank to cater to the growth of Japanese construction equipment companies in India. The bank announces its results on April 24.

  • Marico and Orient Electric hit their new 52-week lows of Rs 466.55 and Rs 221.8 respectively, with the former falling 3.73% in the past month and the other 16.37%.

  • Data released by the DGCA shows that domestic airlines have recorded a 51.7% YoY passenger growth between January and March 2023. As a result, rating agency ICRA revised the outlook for the Indian aviation industry to ‘stable’ and projected passenger traffic to grow 8-13% in FY24.

  • HDFC Securities maintains a 'Weak' outlook on Jubilant Foodworks for Q4FY23, citing weakness in demand for quick-service restaurants (QSR). It expects a 14% YoY decline in EBITDA.

  • Commodity trading & distribution, non-electrical utilities and edible oils industries fall over 21% in the past 90 days.

  • Prabhudas Lilladher expects Zee Entertainment’s Q4FY23 net profit to fall 77.6% YoY and also sees a decline in net sales. The stock shows up in a screener with major fall in TTM net profit.

  • Lalit Agarwal, Founder and MD of V-Mart Retail, expects the company’s sales to improve from Q1FY24 but adds that the sales growth will be in single-digit in FY24.

  • Timken India, Rail Vikas Nigam and CG Power and Industrial Solutions rise more than 2.5% in the past week, outperforming the Nifty 50 index.

  • Bank of India approves the raising of capital worth Rs 6,500 crore for FY24, which willl include Rs 4,500 crore as equity and Rs 2,000 crore via bonds. The stock has gained 61% in the past year and shows up in a screener with improving RoE in the past two years.

  • Piramal Pharma rises more than 7% in trade after the US FDA closed an inspection of its manufacturing facility in the US. The stock is trading above its third resistance or R3 level but ranks medium on the Trendlyne checklist score.

  • Glenmark Pharma rises as it agrees with Merck Group to settle the patent litigation for cholesterol drug Zetia. They will pay $48 million to the direct purchasers for the settlement. The stock has touched its 52-week high in trade today.

  • NBFCs are expected to report strong results in Q4FY23 on the back of high disbursements and recoveries despite the potential impact of rising interest rates on NIMs. Housing finance companies could see growth in low to high teens, while the commercial vehicle segment will grow around 15-25%.

  • Metal stocks like Jindal Steel & Power, National Aluminium, Tata Steel and Steel Authority of India are rising in trade. The broader sectoral index BSE Metal is also trading in the green.

  • Zydus Lifesciences trades flat after touching a new 52-week high of Rs 519.4 today. The company has also received US FDA approval for the manufacturing and marketing of a drug for the prevention of postmenopausal osteoporosis. The drug will be manufactured at the Moraiya facility in Ahmedabad.

  • Zomato rises 3.5% following its clarification to the exchanges regarding a news article related to the disruption caused by the change in the pay structure of its Blinkit partners. The company has stated that the disruption had no material impact on its operations and financial performance. It also adds that it is a regular affair taken to improve customer experience and address the needs of delivery partners.

  • Bajaj Electricals is rising as reports suggest that 22.4 lakh shares (1.95% equity) of the company, amounting to Rs 233.8 crore, change hands in a large trade.

  • Prestige Estate Projects is rising as its wholly owned subsidiary acquires a 51% stake in a commercial office space developer company, Dashanya Tech Parkz, for Rs 66 crore. It shows up in a screener of stocks with consistently high returns over five years.

  • Macrotech Developers, IndusInd Bank and Bank of Maharashtra's weekly average delivery volumes rise ahead of their Q4FY23 results in April.

  • Centre increases the windfall tax on locally produced crude oil to Rs 6,400 per tonne and removes the export tax on diesel, which was previously Rs 0.5 per litre.

  • Vijay Kedia buys a 6.9% stake in Atul Auto in Q4FY23, taking his holdings in the company to 8.4%. He also adds Patel Engineering to his portfolio by buying a 1.3% stake during the same period.

  • Ashish Kacholia adds Aditya Vision to his portfolio in Q4FY23 by acquiring a 1.1% stake in the company.

  • Crisil’s Q4FY23 net profit rises 20% YoY to Rs 145.7 crore, led by a 20% increase in revenue. The company has declared an interim dividend of Rs 7 per share. It shows up in a screener of stocks with improving cash flow for the past two years.

  • ICICI Lombard General Insurance’s Q4FY23 net profit rises 40% YoY to Rs 436.9 crore. Its gross direct premium increases 6.7% YoY, which is lower than the industry growth of 16.9%. However, net premiums have grown across all segments, except for fire insurance. The highest growth has been in corporate group health and crop insurance.

Riding High:

Largecap and midcap gainers today include Gland Pharma Ltd. (1,416.95, 15.05%), Hindustan Petroleum Corporation Ltd. (238.25, 4.22%) and Jindal Steel & Power Ltd. (579.85, 2.36%).

Downers:

Largecap and midcap losers today include ICICI Lombard General Insurance Company Ltd. (1,076.20, -4.82%), Balkrishna Industries Ltd. (2,023.90, -4.78%) and Coforge Ltd. (3,901.95, -3.13%).

Volume Shockers

37 stocks in BSE 500 are trading on high volumes today.

Top high volume gainers on BSE included Gland Pharma Ltd. (1,416.95, 15.05%), KRBL Ltd. (384.90, 12.17%) and Prism Johnson Ltd. (129.10, 11.15%).

Top high volume losers on BSE were ICICI Lombard General Insurance Company Ltd. (1,076.20, -4.82%), Schaeffler India Ltd. (2,855.00, -2.99%) and PVR Ltd. (1,501.20, -2.98%).

Capri Global Capital Ltd. (626.60, 1.51%) was trading at 16.0 times of weekly average. Relaxo Footwears Ltd. (814.50, -0.35%) and ZF Commercial Vehicle Control Systems India Ltd. (10,248.75, -0.23%) were trading with volumes 14.3 and 10.0 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

8 stocks hit their 52-week highs, while 2 stocks hit their 52-week lows.

Stocks touching their year highs included - Zydus Lifesciences Ltd. (517.10, 0.23%), Dr. Reddy's Laboratories Ltd. (4,910.05, -0.05%) and Glenmark Pharmaceuticals Ltd. (512.00, 1.40%).

Stocks making new 52 weeks lows included - Marico Ltd. (468.15, -2.49%) and Orient Electric Ltd. (221.95, -2.31%).

17 stocks climbed above their 200 day SMA including KRBL Ltd. (384.90, 12.17%) and Hindustan Petroleum Corporation Ltd. (238.25, 4.22%). 11 stocks slipped below their 200 SMA including Balkrishna Industries Ltd. (2,023.90, -4.78%) and Schaeffler India Ltd. (2,855.00, -2.99%).