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Trendlyne Marketwatch
28 Jun 2023
Market closes higher, Cyient DLM’s IPO gets bids for 7.6X of the available shares on offer

Trendlyne Analysis

Nifty 50 closed at 18,972.10 (154.7, 0.8%), BSE Sensex closed at 63,915.42 (499.4, 0.8%) while the broader Nifty 500 closed at 16,277.20 (113.7, 0.7%). Of the 1,967 stocks traded today, 923 were in the positive territory and 979 were negative.

Indian indices maintained their gains from the afternoon session and closed in the green, with Nifty 50 hovering just below the 19,000 mark. The volatility index, Nifty VIX, fell below 11 at the close.

Nifty Smallcap 100 and Nifty Midcap 100 closed in the green, following the benchmark index. Nifty Metal and Nifty Healthcare closed higher compared to Tuesday's closing levels. According to Trendlyne's sector dashboard, commercial services & supplies sector emerged as the top-performing sector of the day, with a rise of over 3%.

Most European indices are trading in the green, while US indices futures are trading lower, indicating a negative start. A Wall Street Journal report suggested that the US could impose more restrictions on exporting artificial intelligence chips to China. Chip manufacturing firms like NVIDIA, AMD, and Broadcom dropped in post-market hours on Tuesday.

  • Relative strength index (RSI) indicates that stocks like V-Guard Industries, Patanjali Foods, The Fertilisers and Chemicals Travancore and Poly Medicure are in the overbought zone.

  • Piramal Enterprises rises over 4.5% and ranks high on Trendlyne's checklist with a score of 65.2%. The stock is in the 'Strong Buy' zone and has 'Buy' ratings from 8 brokerage firms. It appears in a screener of stocks with strong momentum.

  • The Indian housing market’s uptrend continues despite rising home loan rates. The number of housing units sold across the top seven cities in India rises 36% YoY to 1.15 lakh units in Q2CY23.

  • Cyient DLM’s Rs 592 crore IPO gets bids for 7.6X the available 1.3 crore shares on offer on the second day of bidding. The retail investor quota gets bids for 64.48X of the available 23.1 lakh shares on offer.

  • ideaForge Technology’s Rs 567 crore IPO gets bids for 50.3X the available 46.5 lakh shares on offer on the third day of bidding. The retail investor quota gets bids for 56X of the available 8.4 lakh shares on offer.

  • Titan Co and JSW Steel reach their all-time highs of Rs 3,040.7 and Rs 791.45 per share, respectively. The former has risen 10.8% over the past month, while the latter grew 12.2%.

  • Narayana Hrudayalaya falls as Kotak Institutional Equities downgrades its rating on the stock to ‘Reduce’ from ‘Add’. The brokerage considers the stock overvalued, given its uptrend over the past year, and recommends booking profits.

  • Commercial services & supplies stocks like EPL, Delta Corp, Century Textiles & Industries, SIS and Redington are rising in trade. The broader commercial services & supplies sector is also trading in the green.

  • Energy and oil & gas stocks like Adani Transmission, NTPC, Bharat Petroleum Corp, Reliance Industries and Oil & Natural Gas Corp are rising in trade. Barring Adani Green Energy, all other constituents of the broader sectoral index, Nifty Energy, are trading in the green.

  • India’s current account deficit falls 92.3% QoQ and 90.3% YoY to $1.3 billion in Q4FY23 due to a moderation in the trade deficit and robust services exports.

  • Nifty 50 reaches its all-time high of Rs 19,011.25. It rises for three consecutive days.

  • Housing Development Finance Corp, a promoter of HDFC Life Insurance, buys 1,48,80,000 equity shares in the company at an average price of Rs 667.1 per share, totalling to Rs 992.6 crore.

  • BEML is rising as it bags orders worth Rs 385 crore from Bharat Dynamics and Bharat Electronics for the supply of high-mobility vehicles. The stock shows up in a screener for companies with low debt.

  • Tata Motors rises as SEBI approves the IPO of its subsidiary, Tata Technologies. The IPO is purely an offer for sale (OFS), with shareholders planning to sell 9.57 crore equity shares, equivalent to around 23.6% of the total paid-up share capital. Tata Motors plans to offload a 20% stake in the company through the OFS.

  • Swan Energy's board approves a preferential issue of 2.3 crore equity shares with a face value of Re 1 each. The issue will be done at a premium of Rs 299, resulting in a share price of Rs 300. The total amount raised through this issue will be Rs 690 crore. The company appears in a screener of stocks with improving book value per share.

  • Metal stocks like Adani Enterprises, JSW Steel, Ratnamani Metals & Tubes and Hindustan Copper are rising in trade. The broader sectoral index Nifty Metal is also trading in the green.

  • Infosys, JBM Auto, Adani Transmission, and UTI Asset Management Company are trading above their third resistance or R3 levels.

  • CLSA maintains its "Buy" rating on SBI Life Insurance Company with a target price of Rs 1,550. The brokerage expects healthy revenue growth in FY24 and margins to remain stable between 29-31%.

  • Motilal Oswal maintains its ‘Neutral’ rating on Wipro with a target price of Rs 360, implying a downside of 5.7% from the current market price. The brokerage expects the company’s FY24 growth to be one of the lowest among the top-tier IT firms, with its margin missing the management’s guidance of 17-17.5%. It estimates the company’s revenue to grow at a CAGR of 7.8% over FY23-25.

  • Aditya Birla Fashion & Retail (ABFRL) and TCNS Clothing Co (TCNS) are rising as reports suggest that the Competition Commission of India has approved the acquisition of TCNS by ABFRL. In May, Aditya Birla Fashion announced that it had entered into definitive agreements to acquire a 51% stake in TCNS for Rs 1,650 crore.

  • Zydus Family Trust, promoter of Zydus Wellness, buys a 0.41% stake in the company through an open market transaction. It now holds a 9.5% stake in the company.

  • Gland Pharma receives one 483 observation from the US FDA during their pre-approval and good manufacturing practice inspections. The inspections took place at the company's Pashamylaram facility in Hyderabad between June 15 and June 27.

  • According to reports, 75.6 lakh shares (3% equity) of Bikaji Foods International, amounting to Rs 322.6 crore, have changed hands in a large trade.

  • Titagarh Rail Systems rises as it receives letter of acceptance for an order worth Rs 857 crore from Gujarat Metro Rail Corporation. The order encompasses the complete process of designing, manufacturing, supplying, commissioning, and training for a total of 72 standard gauge cars required for the Surat Metro Rail Phase-I Project.

  • Shapoorji Pallonji and Company, promoter of Sterling and Wilson Renewable Energy, sells a 1.85% stake in the company on Tuesday.

Riding High:

Largecap and midcap gainers today include Adani Transmission Ltd. (819.15, 5.94%), Adani Enterprises Ltd. (2,402.00, 5.15%) and Adani Ports & Special Economic Zone Ltd. (756.50, 5.03%).

Downers:

Largecap and midcap losers today include PB Fintech Ltd. (693.10, -3.29%), HDFC Life Insurance Company Ltd. (651.95, -2.29%) and Bandhan Bank Ltd. (233.45, -1.91%).

Crowd Puller Stocks

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

Top high volume gainers on BSE included EPL Ltd. (221.00, 7.33%), Quess Corp Ltd. (446.50, 5.27%) and Adani Enterprises Ltd. (2,402.00, 5.15%).

Top high volume losers on BSE were Vedant Fashions Ltd. (1,254.80, -1.51%), Bikaji Foods International Ltd. (424.10, -1.17%) and Max Healthcare Institute Ltd. (603.30, -1.04%).

Sheela Foam Ltd. (1,214.25, 3.61%) was trading at 17.7 times of weekly average. Adani Green Energy Ltd. (956.65, -0.30%) and IFB Industries Ltd. (818.75, 2.41%) were trading with volumes 13.3 and 12.2 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

35 stocks hit their 52-week highs, while 1 stock was an underachiever and hit its 52-week low.

Stocks touching their year highs included - Abbott India Ltd. (23,277.55, 2.51%), Aurobindo Pharma Ltd. (738.75, 2.86%) and Zydus Lifesciences Ltd. (582.45, 2.06%).

Stock making new 52 weeks lows included - Rajesh Exports Ltd. (542.35, -0.38%).

12 stocks climbed above their 200 day SMA including Quess Corp Ltd. (446.50, 5.27%) and Adani Ports & Special Economic Zone Ltd. (756.50, 5.03%). 9 stocks slipped below their 200 SMA including Rain Industries Ltd. (162.10, -3.45%) and Restaurant Brands Asia Ltd. (108.50, -2.60%).

 
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The Baseline
28 Jun 2023
US becomes India’s largest trading partner | Stocks set to outperform in the June quarter
By Tejas MD

Last week, the India and the US pulled closer together, with a toast to a new relationship. President Joe Biden emphasized the similarities between the two countries. “Two great nations, two great friends, and two great powers," he said.

It is a moment that the US Ambassador Eric Garcetti noted, "will go down in history as a new chapter."Modi’s visit was front-page news in the US, and USA Today declared, “For nearly a decade, Narendra Modi wasn’t allowed to set foot in the United States. But times, titles and political agendas change.” 


The US displayed Modi's face in Times Square and lit up Niagara Falls in the tricolour, marking a major shift in trade relations. This change has been underway since FY19, when the US overtook China to become India’s largest trading partner for the first time. 

In this week’s Analyticks,

  • New best friends: How did the US emerge as India’s top trading partner?
  • Screener: Companies beating analyst estimates, and set for high revenue growth in Q1FY24

US becomes India’s largest trading partner, as it imposes sanctions on China

Historically, China has been India’s top trading partner. But this changed after Donald Trump won the presidency in 2016. Trump was not a fan of China, and wanted to reduce US dependence on the country. In 2018, the Trump administration imposed trade sanctions on the Chinese, including investment restrictions and tariffs on products worth $60 billion.

The Americans started looking elsewhere in Asia for trade. And so for the first time in FY19 and FY20, the US replaced China as India’s top trading partner.

Under President Biden, trade barriers between the US and China have only increased. After Russia invaded Ukraine in 2022, the US imposed sanctions on several Chinese businesses for supplying Russian military networks. 

In October 2022, the US also announced limits on the sale of new semiconductors to China, with the intention of slowing down its tech sector. 

These events presented an opportunity for India to ramp up its trade with the US. As a result, the US has become India’s top trading partner in four out of the past five years. The economic slowdown in China has also impacted China’s trade.

India has a trade surplus with the US. But while the US is India's largest trading partner, this is not true the other way round - the US still has larger trading relationships with China, the EU, and its North American neighbours.

One goes east, the other goes west: India exports raw materials to China, diversified goods to the US

India has an unequal trade relationship with China. It mainly exports basic raw materials, and imports finished goods. In FY23, 50% of India’s imports from China were electrical machinery, nuclear reactors, and mechanical appliances, while 40% of India’s exports were raw materials.

However, it is a different story when it comes to US trade. India has a trade surplus of $28 billion with the US. India’s exports to the US are also more diverse, with a focus on finished goods such as pharmaceuticals, electrical machinery and parts.

Modi and Biden sign multi billion-dollar deals, but India needs to step up execution 

PM Modi’s visit to the US comes at a time when Indian benchmark indices are hovering near their all-time highs. India’s economy is also in good shape, as it is among the fastest-growing economies, with zero recession possibility.

During the PM’s visit, Modi and Biden struck multibillion-dollar deals in areas such as semiconductors, critical minerals, technology, space cooperation, and defence.

In defence, Biden and Modi signed an agreement allowing General Electric to produce jet engines in India for Indian military aircraft, in partnership with Hindustan Aeronautics. India will also procure US-made armed MQ-9B SeaGuardian drones, amounting close to $3 billion. 

India already imports high-value aircraft and spacecraft from the US. In FY23, the import value was $1,565.1 million and exports around $462.2 million. However, the new deal could change these numbers, with total trade increasing on the back of these agreeements.

In the semiconductor space, US chipmaker Micron Technology plans a $2.7 billion semiconductor testing and packaging unit in Gujarat. While Micron will contribute 30% of the investment, the remaining funding will come from the Indian government. 

In electrical machinery and equipment, India has maintained a trade surplus with the US since FY20. As the US reduces its dependence on China in electronics, India is capturing some of that market share. 

Modi’s meeting with tech CEOs like Satya Nadella, Sundar Pichai and Elon Musk also made headlines. 

While Amazon committed to an additional $15 billion investment in India by 2030, Google pledged $10 billion to the India Digitization Fund, to accelerate the country's digital revolution. 

Will we always be the 'country of the future'?

India has won some impressive new deals, but execution remains a daunting task. Problems like infrastructure gaps, delays in approvals and permits have long held us back - China works like a smoothly-oiled machine compared to India's creaky bureaucracy.

Apple, for instance, faced several issues while setting up operations in India, including challenges in finding local partners similar to its 150 component suppliers in China. Getting state labor law updated for iPhone factories required meetings with senior political figures in Karnataka and Tamil Nadu. To fast-track deals and improve execution, India must fix long-standing problems like poor port infrastructure, policy inconsistency, and British-era labour regulations. 

The US-China trade war has given India the opportunity to rise as a prominent manufacturing power. India's US relationship also comes with less baggage: we have a trade surplus with the US, and unlike exports to China, exports to the US include finished goods. A rise in finished goods trade can help India move up the value chain, and improve its manufacturing ecosystem.

India's promising growth outlook, and a recovering US economy present a historical chance. But this promise for now, is still only half-complete. Some analysts remain skeptical of India being able to fix its problems. "India is the 'country of the future', with the future never arriving", Graham Allison wrote last week. It's about time we changed that.

Screener: Rising companies beating estimates and poised for high YoY revenue growth in Q1FY24

As Q1FY24 draws to a close, we take a look at stocks with the highest revenue YoY growth potential in the upcoming June quarter, according to Trendlyne’s Forecaster. This screenershows stocks that have beaten Forecaster estimates of revenue growth in Q4FY23, and are also set for further growth in revenue and net profit in Q1FY24.

The screener identifies 13 stocks from the Nifty 500 and one stock from the Nifty 50. It is dominated by stocks from the banking & finance, pharmaceuticals & biotechnology and general industrials sectors. Major stocks that appear in the screener are MTAR Technologies, Biocon, KPIT Technologies, Craftsman Automation, Bank of Baroda and Cummins India.

Trendlyne’s Forecaster estimates Biocon’s revenue to grow by 66.2% YoY in Q1FY24. The company saw a 56.7% YoY growth in revenue in Q4FY23, outperforming the biotechnology industry by 8.3 percentage points. This was helped by the Viataris deal, which more than doubled the revenue from the biosimilars business. Its net profit also improved by 31.3% YoY.

According to analysts, KPIT Technologies is expected to clock a revenue growth of 53.7% YoY in Q1FY24. The stock saw a 56.1% YoY growth in revenue in Q4FY23, outperforming the IT consulting & software industry by 37.5 percentage points. This improvement was driven by orders from big accounts (like Renault’s $100 million deal extension), new engagements and an increase in revenue from the mobility & autonomous segment. Its net profit increased by 41.5% YoY in the same quarter, which outperformed its industry’s net profit growth by 33.4 percentage points.

For Bank of Baroda, consensus estimates from analysts point to a revenue growth of 39.9% YoY in Q1FY24. The company’s revenue rose 41.8% YoY in Q4FY23, outperforming the banking industry by 9.9 percentage points. This was due to improving net interest margins (NIM) and lower credit costs. 

You can find some popular screenershere.

Signing off this week, 

The Trendlyne Team

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The Baseline
27 Jun 2023
Five analyst picks this week
By Abhiraj Panchal
  1. Prudent Corporate Advisory Services: ICICI Securities maintains its 'Buy' rating on this financial services company with a target price of Rs 1,048. This implies a potential upside of 13.7%. Analysts Ansuman Deb and Ravin Kurwa are optimistic about Prudent as it is one of the premier mutual fund distributors with assets under management (AUM) amounting to Rs 56,000 crore as of March 2023.

In FY23, the company earned commissions of Rs 500 crore on the back of its extensive network of 27,000 distributors across the country, giving it a notable competitive edge. The analysts also point out that the firm's stock-based business model and growing AUM contributed to a 30% revenue CAGR and a 54% earnings CAGR  in FY19-23, supported by a monthly Systematic Investment Plan (SIP) of Rs 520 crore.

The analysts predict that the company’s shift to digital platforms will unlock new revenue streams from non-mutual fund financial products. They foresee an 11% CAGR in non-mutual fund revenue from FY24-25, driven by effective cross-selling of insurance through existing distributors. Positive trends in the capital market could also boost the broking segment, the analysts say.

  1. Blue Dart Express: Motilal Oswal upgrades its rating on this logistics services provider to ‘Buy’ from ‘Neutral’, with a target price of Rs 8,040. This indicates an upside of 11.6%. Analysts Alok Deora and Saurabh Dugar note that Blue Dart’s margins were impacted in FY23 as aviation turbine fuel (ATF) prices did not align with the declining trend of global Brent crude prices. However, “ATF prices have still corrected significantly over the past months, and Blue Dart implemented a 10% annual general price hike in January 2023,” the analysts add. They believe that these factors, along with improvement in volumes, will lead to margin improvement in the coming quarter.

Blue Dart added two Boeing 737 aircraft to its fleet in FY23 to cater to the growing demand for air express services. With a robust network, the analysts believe that the company can capitalize on the growth opportunity in the express logistics space. Deora and Dugar remain positive on the company due to its 60% market share in the organised air express segment and the growth in market share in the surface express segment.

  1. Bharat Petroleum Corp (BPCL): HDFC Securities upgrades its rating on this petroleum products company to a ‘Buy’, with a target price of Rs 442. This indicates an upside of 22.7%. According to analysts Harshad Katkar, Nilesh Ghuge, Akshay Mane and Rutvi Chokshi, BPCL has performed well in the past six months on the back of improving auto fuel marketing margins. This was due to an 11% decline in Brent crude prices. The analysts expect refining margins to remain robust, supported by improving global petroleum product demand, limited supplies and lower inventories. 

Given the current trend in crude oil prices, the analysts believe that “the oil marketing companies are likely to be allowed to recover losses incurred on the sale of petrol and diesel before implementing any cuts in retail selling prices”. BPCL has committed a capex of Rs 35,000 crore over the next few years, with an expected capex of Rs 13,000 crore in FY24. The analysts expect capex intensity to sustain in FY25 as well. Political stability in oil markets such as Russia and the Middle East will continue to be an important factor.

  1. Gujarat State Petronet: Bob Capital Markets initiates coverage on this utility services provider with a ‘Buy’ call and a target price of Rs 370, indicating an upside of 25.3%. Analyst Kirtan Mehta expects growth in the refining and petrochemicals businesses, and in city gas distribution, to drive volume recovery in the short term. Average monthly LNG imports in March-May were around 50% higher than the levels in January-February. As the company has four key LNG terminals and is also expanding its capacity, the analyst believes that it will benefit from increased gas penetration in Gujarat and north India. 

Addressing investment concerns, Mehta says that the company has already repaid loans taken for the acquisition of a stake in Gujarat Gas. Its city gas distribution business has also shown substantial progress. Factoring in FY23 volume returns and upcoming tariff revision, the analyst expects Gujarat State Petronet to post 3% YoY revenue growth and 26% YoY volume growth in FY24.  

  1. Cholamandalam Investment & Finance: Sharekhan upgrades its rating on this non-banking financial company to a 'Buy', with a target price of Rs 1,350. This implies a 23.4% upside. The analysts at Sharekhan are positive about the company due to its strong performance in existing businesses and the expansion of new ventures. They expect the company’s assets under management to grow by 20-25% in FY24, with home loans and new businesses outpacing the vehicle finance sector.

According to the analysts, the company will fully offset the additional cost of funds with incrementally higher disbursement yields. They say this will help the firm maintain net interest margins at FY23 exit levels. They are optimistic about its growth in the medium term, especially in tier-II and tier-III cities, and predict a sustainable return on equity of around 20%. The company's strong performance in past business cycles gives the analysts confidence in the quality of its high growth. They also speculate that an equity fundraising in FY24 could serve as an additional growth catalyst.

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

(You can find all analyst picks here)

 
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Trendlyne Marketwatch
27 Jun 2023
Market closes higher, ideaForge Technology’s Rs 567 crore IPO gets bids for 13.3X of shares

Trendlyne Analysis

Nifty 50 closed at 18,817.40 (126.2, 0.7%) , BSE Sensex closed at 63,416.03 (446.0, 0.7%) while the broader Nifty 500 closed at 16,163.50 (97.4, 0.6%). Of the 1,963 stocks traded today, 1,147 were on the uptick, and 742 were down.

Indian indices rebounded from their day lows and closed in the green, with the benchmark Nifty 50 index rising above the 18,800 mark. Indian volatility index, Nifty VIX, fell sharply and closed below the 11% mark. NSE revised the stock market holiday this week for Bakri Id from Wednesday to Thursday.

Nifty Smallcap 100 and Nifty Midcap 100 closed in the green, following the benchmark index. Nifty Bank and Nifty Realty closed over 1% higher than their Monday’s close. According to Trendlyne’s sector dashboard, Fertilizers was the top-performing sector of the day.

Major Asian markets closed in the green, except for Japan’s Nikkei 225 and Taiwan’s TSEC 50 Index. European stocks fell from their day highs and traded flat on a volatile day of trade. Brent crude oil futures traded over 1% lower after closing flat on Monday.

  • Money flow index (MFI) indicates that stocks like ICICI Securities, Alembic Pharmaceuticals, Poly Medicure and Swan Energy are in the overbought zone.

  • V-Guard Industries and InterGlobe Aviation reach their all-time highs of Rs 288.2 and Rs 2,544.4 per share, respectively. The former has risen 13.7% over the past month, while the latter grew 9%.

  • HDFC Bank and HDFC rise as they set July 1 to be the effective date of their merger. HDFC’s shares will stop trading and delist on July 13, while the merged entity of HDFC Bank is set to start trading on July 17.

  • Zee Entertainment Enterprises is rising as the Securities Appellate Tribunal (SAT) reserves its order on the appeal filed by Puneet Goenka and Subhash Chandra against SEBI. SEBI had issued an interim order restricting them from holding any key managerial positions in listed entities or their subsidiaries.

  • Cyient DLM’s Rs 592 crore IPO gets bids for 2.65X the available 1.3 crore shares on offer on the first day of bidding. The retail investor quota gets bids for 9.82X of the available 23.1 lakh shares on offer.

  • City Union Bank rises as its board approves a plan to raise Rs 500 crore through qualified institutional placements (QIP). It appears in a screener of stocks with improving book value.

  • ideaForge Technology’s Rs 567 crore IPO gets bids for 13.3X the available 46.5 lakh shares on offer on the second day of bidding. The retail investor quota gets bids for 36.4X of the available 8.4 lakh shares on offer.

  • UBS Group AG maintains its 'Buy' rating on InterGlobe Aviation and raises the target price to Rs 3,300 from Rs 2,690, according to reports. This indicates a potential upside of 30%. This target price upgrade comes on the back of increased demand, higher yields and lower fuel costs.

  • IIFL Securities rises following the Securities Appellate Tribunal's (SAT) decision to stay the SEBI order barring the company from onboarding new clients. The company appears in a screener of stocks with no promoter pledge.

  • According to reports, 30.3 lakh shares of Sapphire Foods change hands at Rs 1,377 per share through a block deal today.

  • PSU bank stocks like State Bank of India, Punjab National Bank, Canara Bank and Union Bank of India are rising in trade. Barring Indian Bank, all other constituents of the broader sectoral index, Nifty PSU Bank, are trading in the green.

  • CreditAccess Grameen is rising as it signs a $200 million external commercial borrowing deal with foreign banks and overseas branches of Indian banks. The company has already received commitments of $160 million from 12 banks. It shows up in a screener for stocks in the PE Buy zone, with high durability scores and rising momentum scores.

  • Ajay Chitkara, Chief Executive Officer of Airtel Business, resigns from Bharti Airtel, effective from the third week of August 2023. As a result, Airtel Business will be restructured into three separate businesses: global business, led by Vani Venkatesh; domestic business, led by Ganesh Lakshminarayanan; and Nxtra Data Centers, led by Ashish Arora.

  • Sixth Sense India Opportunities III buys an additional 0.7% equity stake (7,83,000 shares) in Parag Milk Foods. The deal has been executed at an average price of Rs 132 per share, amounting to Rs 10.3 crore. With this deal, Sixth Sense now has a 3.8% stake (45,04,503 shares) in the company.

  • Healthcare service providers like Dr. Lal Pathlabs, Metropolis Healthcare, Vijaya Diagnostic Centre and Thyrocare Technologies are rising in trade. The broader industry, Healthcare Services, is also trading in the green.

  • P Radhakrishna, Director (Production) of Bharat Dynamics, says the company’s current export order book stands at Rs 2,600 crore. He expects good traction in export orders in the future. He also anticipates the company’s revenue to surpass Rs 3,200 crore in FY24.

  • ICICI Securities downgrades its rating on Apollo Tyres to ‘Add’ from ‘Buy’ but raises the target price to Rs 450 from Rs 424. This implies an upside of 11.9%. The brokerage cites the stock’s expensive valuation and limited upside for lowering its rating. However, it remains optimistic about the firm’s prospects given the management’s focus on lowering debt, improving profitability and expanding margins.

  • Metal stocks likeAPL Apollo Tubes, Jindal Steel & Power, JSW Steel, Tata Steel and NMDC are rising in trade. Barring Vedanta, all other constituents of the broader sectoral index, BSE Metal, are trading in the green.

  • HBL Power System rises as it receives a Rs 135 crore order from Ashoka Buildcon. The order involves the supply and commissioning of all equipment required for the Kavach system. The company appears in a screener of stocks with improving RoCE.

  • Vivek Kumar Dewangan, Chairman and Managing Director of REC, expects a decline in the company’s borrowing cost, and AUM to improve to Rs 4.8 lakh crore by FY24. He also anticipates the net interest margin (NIM) to rise over 3.5% in the future.

  • Sun Pharmaceutical Industries' subsidiary Sun Pharma Canada receives Health Canada's approval for Absorica, an oral medication used to treat severe acne in patients aged 12 and above. The company appears in a screener of stocks with rising RoA.

  • Hindustan Unilever's Chief Executive Officer and Managing Director Sanjiv Mehta steps down from his position, effective from June 26, 2023.

  • Macquarie maintains its ‘Outperform’ rating on IndusInd Bank with a target price of Rs 1,510. The brokerage expects the bank’s credit costs to fall to 110-130 bps in FY24 from 160 bps in FY23. It believes IndusInd Bank’s NIMs will increase to 4.4%.

  • Cyient DLM raises Rs 259.6 crore from anchor investors ahead of its IPO by allotting 97.98 lakh shares at Rs 265 per share. Investors include Societe Generale, BNP Paribas Arbitrage, Amansa Holdings, HDFC Mutual Fund, Aditya Birla Sun Life Trustee and Tata Mutual Fund.

  • Star Health and Allied Insurance removes S Prakash from the position of Managing Director on June 26 and appoints him as a Strategic Management Executive.

  • ICICI Prudential Life Insurance receives a show cause cum demand notice for Rs 492.1 crore from GST authorities. The notice relates to GST credit issues affecting the whole industry. However, the company has denied any liability and plans to challenge the matter.

  • Aditya Birla Capital launches its Qualified Institutional Placement (QIP) issue with a floor price of Rs 175.99 per share. The company plans to offer preferential allotment of equity shares worth Rs 1,250 crore. The stock shows up in a screener for companies with high TTM EPS growth.

Riding High:

Largecap and midcap gainers today include Aditya Birla Capital Ltd. (192.30, 6.10%), HDFC Life Insurance Company Ltd. (667.20, 5.86%) and Star Health and Allied Insurance Company Ltd. (559.60, 4.19%).

Downers:

Largecap and midcap losers today include Bharat Electronics Ltd. (118.40, -2.47%), Vodafone Idea Ltd. (7.50, -1.96%) and Schaeffler India Ltd. (3,071.45, -1.91%).

Crowd Puller Stocks

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

Top high volume gainers on BSE included Aditya Birla Capital Ltd. (192.30, 6.10%), HDFC Life Insurance Company Ltd. (667.20, 5.86%) and Can Fin Homes Ltd. (780.10, 5.08%).

Top high volume losers on BSE were Ratnamani Metals & Tubes Ltd. (2,296.90, -1.84%), TCI Express Ltd. (1,567.30, -0.53%) and Gillette India Ltd. (5,081.40, -0.43%).

Gujarat Pipavav Port Ltd. (121.75, 4.15%) was trading at 24.1 times of weekly average. Sapphire Foods India Ltd. (1,410.05, 1.37%) and Suven Pharmaceuticals Ltd. (488.40, -0.01%) were trading with volumes 18.2 and 8.2 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

18 stocks overperformed with 52 week highs,

Stocks touching their year highs included - Zydus Lifesciences Ltd. (570.70, 1.58%), Can Fin Homes Ltd. (780.10, 5.08%) and Dr. Reddy's Laboratories Ltd. (5,025.60, -0.32%).

17 stocks climbed above their 200 day SMA including Dr. Lal Pathlabs Ltd. (2,220.05, 2.47%) and Shree Cements Ltd. (24,018.15, 1.33%). 4 stocks slipped below their 200 SMA including Vodafone Idea Ltd. (7.50, -1.96%) and Cipla Ltd. (1,009.25, -1.24%).

 
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The Baseline
26 Jun 2023
By Akshat Singh

India’s superstar investors have over the past decade, become famous for their stock picks and proven track record. Retail investors closely follow their investments and the sectors they favour, drawing inspiration from their investing strategies. A Kacholia buy for instance, can move the price of the stock the next day by a fair amount. In this edition of Chart of the Week, we take a look at superstar investors’ public portfolio holdings from December 2015 to June 2023 and analyse their preferred sectors and investing strategies. 

Trendlyne's superstar dashboard shows that superstars have significantly invested in  retailing, software & services, textiles, apparels & accessories, and banking & finance. Notably, Indian retail sales recorded strong growth, of 34% YoY in FY23. 

The textiles, apparels & accessories sector outperformed the Nifty 50 by 23.3 percentage points in the past year. On the other hand, the software & services sector saw a moderate growth of 9.2%, underperforming the Nifty 50 by 11.9 percentage points. Meanwhile, the banking & finance sector rose  35.4% over the same period. Prominent investors like Jhunjhunwala (now managed by RARE Enterprises), Kedia, and Damani saw significant changes in their net worth from June 2018 to June 2023, with a noticeable slowdown from Dec 2021 to Sep 2022. 

Radhakishan Damani, the promoter of retail chain DMart and the third richest Indian according to Forbes 100 richest Indian 2022, holds the biggest public stock portfolio among superstar investors. As of June 2023, this superstar investor’s net worth stood at Rs 1.8 lakh crore. The majority of his holdings are in retail (97.1%), food, beverages & tobacco (1.2%), and cement & construction (0.8%). In December 2015, he ranked 3rd in net worth, but after DMart went public in March 2017, his net worth soared to Rs 35,827 crore. During the COVID-19 pandemic in March 2020, Damani gained the pole position in portfolio net worth, surpassing Premji and Associates. Damani is a largely passive investor who has exited only four positions in the past two years: Man Infraconstruction, Prozone Intu Properties, Food & Inns, and Metropolis Healthcare. He has also trimmed holdings in three companies from December 2021 to March 2023: United Breweries in March 2023, Avenue Supermarts in March 2022, and India Cements in December 2021.

Another superstar investor who ranks high in net worth is Premji and Associates with a net worth of Rs 1.5 lakh crore as of June 2023. Its portfolio consists of only three stocks, with Wipro accounting for over 99% of the total holding. This means that this superstar investor’s public holding value completely depends on Wipro’s share price. Premji and Associates holds a 72.9% stake in Wipro as of March 2023. Damani overtook Premji in 2019 due to a 2% muted growth in revenue in the IT sector, during which Wipro lost 10% of its share value. The superstar investor’s net worth fell in 2022 as Wipro underperformed amid high inflation and rising rates, which led to slowed revenue growth and deal wins.

The late Rakesh Jhunjhunwala, also known as the big bull, has a portfolio consisting of 29 stocks, currently managed by Rare Enterprises. Its preferred sectors include textiles, apparels & accessories (36.6%), banking & finance (25.3%), and retail (10.3%). Despite the investment slowdown, Rare made additions to the portfolio in March 2023, including a 1.9% stake in Sun Pharma ARC and a 5.2% stake in Raghav Productivity Enhancers. Rare Enterprises also increased its stake in Jhunjhunwala's top pick, Titan, by 0.1%, while reducing stakes in Edelweiss Financial Services, Autoline Industries and Singer India by 0.2%, 0.4%, and 1% respectively in March 2023. Over the past year, Jhunjhunwala’s portfolio exited eight positions, with popular names like Delta Corp, TV18 Broadcast and Indiabulls Real Estate among them. 

Like Jhunjhunwala, Akash Bhansali also prefers textiles, apparels & accessories (9.9%) and banking & finance (8.9%). However, Bhansali stands out with a significant investment in the chemicals & petrochemicals (50.3%) sector. He holds substantial stakes in Sudarshan Chemicals (8.1%) and Gujarat Fluorochemicals (4.9%), which serve as the main drivers of his portfolio. 

Ashish Kacholia prefers  textiles, apparels & accessories and general industrial chemicals & petrochemicals. His portfolio has a mix of small-cap and mid-cap stocks. In March 2023, he added micro-cap stocks like Aditya Vision (1.1%), Virtuoso Optoelectronics (5.4%), DU Digital Global (5%). Kacholia actively manages his investments, regularly adding new stocks, increasing stakes, and exiting positions. In the past year, he entered and exited 7 positions, including popular ones such as VRL Logistics, Marksans Pharma, and Mahindra Logistics.

Sunil Singhania’s Abakkus Fund holds 24 out of 27 stocks from small-cap and mid-cap companies, with a focus on software & services (22.1%), consumer durables (14%) and cement & construction (12.5%). During the March 2020 quarter, Singhania’s portfolio fell by 24.3% due to the downturn in software stocks. Currently, he has added a 2.3% stake in Uniparts India and increased his stakes in IT consulting firm Mastek and commercial, services & supplies company Technocraft Industries by 0.2% each, reaching 2.3% and 3.2% respectively. In contrast, he has reduced his stakes in Tracxn Technologies and The Anup Engineering by 0.4% and 0.2% respectively. These quarterly updates in Singhania's portfolio make him an active investor.

Vijay Kedia focuses mainly on the telecom services (26.3%) sector, while Nemish Shah’s portfolio is dominated by the general industrial (62.8%) sector and Ashish Dhawan favours the banking & finance (46.14%) sector.

 
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Trendlyne Marketwatch
26 Jun 2023
Market closes flat, ideaForge Technology’s IPO gets bids for 3.7X of shares

Trendlyne Analysis

Nifty 50 closed at 18,691.20 (25.7, 0.1%), BSE Sensex closed at 62,970.00 (-9.4, 0.0%) while the broader Nifty 500 closed at 16,066.15 (54.4, 0.3%). Of the 1,984 stocks traded today, 1,067 showed gains, and 843 showed losses.

Indian indices close flat, with the Nifty 50 hovering below the 18,700 mark. The volatility index, Nifty VIX, rose above 11 at the close.

Nifty Smallcap 100 and Nifty Midcap 100 closed in the green, with the benchmark index closing flat. Nifty Auto and Nifty Healthcare closed higher from Friday’s closing levels. According to Trendlyne’s sector dashboard, retailing emerged as the top-performing sector of the day with a rise of over 1.6%.

Most European indices trade in the red. US indices futures trade lower indicating a negative start. European energy stocks gained in early trade as Russian political unrest led to a rise in oil prices.

  • Info Edge (India) sees a long buildup in its June 29 future series as its open interest rises 26.3% with a put-call ratio of 0.72.

  • HDFC Securities upgrades Bharat Petroleum Corp to a 'Buy' from 'Add', with an upgraded target price of Rs 442. This indicates a potential upside of 22.8%. The upgrade is based on the company's strong gross refining margins (GRM) and swift recovery in auto fuel gross marketing margin, supported by the decline in Brent crude prices. The brokerage expects the company’s net sales to grow at a CAGR of 7.9% over FY22-25.

  • Aurobindo Pharma and V-Guard Industries touch their 52-week highs of Rs 725.3 and Rs 277.6 respectively. The former has risen 19.4% over the past month, while the latter increased by 9.1%.

  • RailTel Corporation of India rises as it receives an order worth Rs 294.4 crore from the Tamil Nadu State Marketing Corporation (TASMAC). The project aims to implement an integrated solution to computerise and connect the core and support functions of TASMAC. The implementation process is expected to span over five years.

  • Shree Cements is falling as reports emerge of a tax evasion amounting to Rs 23,000 crore discovered during raids conducted at the company's offices in Beawar, Jaipur, Chittorgarh, and Ajmer.

  • ideaForge Technology’s Rs 567 crore IPO gets bids for 3.7X the available 46.5 lakh shares on offer on the first day of bidding. The retail investor quota gets bids for 12.5X of the available 8.4 lakh shares on offer.

  • Commercial services & supplies stocks like Adani Enterprises, Container Corporation of India, Redington and Century Textiles & Industries are rising in trade. The broader commercial services & supplies sector is also trading in the green.

  • Pharmaceuticals stocks like Natco Pharma, Gland Pharma and Aurobindo Pharma are rising in trade. All constituents of the broader Nifty Pharma index are also trading in the green.

  • SBI Cards and Payment Services is falling as Nomura downgrades its rating to 'Reduce' and lowers the target price by 32% to Rs 700. Nomura believes that the company's profitability will continue to face pressure and points out that the growth of the credit card industry is moderating.

  • PB Fintech rises over 5.5% to reach a new 52-week high of Rs 698.9 and ranks high on Trendlyne's checklist with a score of 52.9%. The stock has 'Buy' ratings from 9 out of 12 brokerage firms. It appears in a screener of stocks with strong momentum.

  • Capacite Infraprojects rises after securing a contract worth Rs 452.5 crore from a reputable client in the sector. The order involves the construction of a residential and commercial tower in the National Capital Region (NCR). The company appears in a screener of stocks with strong EPS growth.

  • S&P Global Ratings maintains its forecast for India's FY24 GDP growth at 6% and says that it will be the fastest-growing economy in the Asia Pacific region. The rating agency also anticipates a decline in India's retail inflation to 5% in FY24 and expects the RBI to initiate interest rate cuts by early 2024.

  • Infosys enters into a strategic partnership with Danske Bank with an estimated deal value of $454 million (Rs 3,720.64 crore) for a period of 5 years. As part of the agreement, Infosys will also acquire Danske Bank's IT centre in India. The IT firm expects the transactions to be completed before Q2FY24.

  • HDFC Life Insurance receives a GST demand notice of Rs 942 crore from the government for claiming input tax credit on ineligible services. The insurer has deposited Rs 250 crore as a protest.

  • Larsen & Toubro's power & transmission business secures three orders worth Rs 1,000 to 2,500 crore in the Middle East and India. Two orders in the Middle East involve upgrading electrical networks in large industrial facilities by installing gas-insulated substations with high-voltage cable systems. The third order is for building a 765 kV transmission line in India.

  • ICICI Bank schedules a board meeting on Thursday to consider the proposal for delisting its arm, ICICI Securities.

  • ideaForge Technology raises Rs 254.9 crore from anchor investors ahead of its IPO by allotting 37.92 lakh shares at Rs 672 per share. Investors include Pinebridge Global Funds, Nomura Funds, Ashoka India Equity Investment Trust Plc, HSBC Mutual Fund and Goldman Sachs Funds.

  • Nishant Pitti, promoter of Easy Trip Planners, sells a 3.6% stake in the company on Friday. He now holds a 28.7% stake.

  • Citigroup maintains its ‘Buy’ rating on Apollo Tyres with a target price of Rs 445. The brokerage believes the company’s volume and revenue growth will be led by an improvement in demand momentum for TBR (Truck, Bus and Radial) tyres and PCR (Passenger Car Radial) tyres in FY24.

  • Sunil Singhania buys a 2.12% stake in Landmark Cars on Friday in multiple bulk and block deals.

  • Zydus Lifesciences' subsidiary, Zydus Animal Health and Investments, signs an agreement to buy a 6.5% stake in Mylab Discovery Solutions. The stake will be purchased from Rising Sun Holdings for Rs 106 crore.

  • Rail Vikas Nigam emerges as the lowest bidder in an auction conducted by the Maharashtra Metro Rail Corp (MMRCL) for the design and construction of a 6.9 km elevated metro viaduct, with a contract value of Rs 394.9 crore. The project is expected to be completed within 30 months.

Riding High:

Largecap and midcap gainers today include PB Fintech Ltd. (698.50, 6.32%), Varun Beverages Ltd. (799.20, 4.32%) and Gland Pharma Ltd. (1,021.00, 4.18%).

Downers:

Largecap and midcap losers today include Shree Cements Ltd. (23,702.15, -5.74%), Star Health and Allied Insurance Company Ltd. (537.10, -2.43%) and Schaeffler India Ltd. (3,131.40, -2.29%).

Movers and Shakers

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

Top high volume gainers on BSE included ICICI Securities Ltd. (621.90, 10.45%), Sun Pharma Advanced Research Company Ltd. (210.90, 9.08%) and SJVN Ltd. (42.00, 6.60%).

Top high volume losers on BSE were Shree Cements Ltd. (2,3702.15, -5.74%), Vedant Fashions Ltd. (1,288.90, -0.90%) and Vinati Organics Ltd. (1,822.05, -0.02%).

Zydus Wellness Ltd. (1488.10, 0.68%) was trading at 9.6 times of weekly average. Alembic Pharmaceuticals Ltd. (634.40, 4.99%) and Hatsun Agro Products Ltd. (957.80, 2.97%) were trading with volumes 8.0 and 6.1 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 1 stock hit their 52-week lows.

Stocks touching their year highs included - Aurobindo Pharma Ltd. (721.35, 3.18%), Dr. Reddy's Laboratories Ltd. (5,041.60, 0.96%) and FDC Ltd. (323.70, 2.91%).

Stock making new 52 weeks lows included - Adani Total Gas Ltd. (644.00, 1.53%).

12 stocks climbed above their 200 day SMA including Sun Pharma Advanced Research Company Ltd. (210.90, 9.08%) and Gillette India Ltd. (5,081.00, 5.10%). 14 stocks slipped below their 200 SMA including Shree Cements Ltd. (23,702.15, -5.74%) and Godfrey Phillips India Ltd. (1,625.60, -3.09%).

 
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The Baseline
23 Jun 2023
Five Interesting Stocks Today
  1. Dixon Technologies (India) Ltd: Thisconsumer electronics manufacturer has made headlines for its partnership with Xiaomi to manufacture smartphones in India. The stock has gained 33.9% in the past month, according toTrendlyne Technicals. Recentreports also suggest that Dixon is in talks with Google to produce Google Pixel Phones in India. Dixon has received large orders from Jio and Nokia and has already started producing 4G phones for Jio since May 2023. The firm expects the revenue potential from smartphone manufacturing to reach around Rs 6,000 crore in FY24.

Dixon’s Q4FY23 revenue has increased marginally by 4% on account of lower sales in TVs and LED lights. Price corrections in open cells led to lower price realization for TVs. The firm has received orders for HD set-top boxes from Airtel, with production expected to start in the second half of FY24. Dixon’s EBITDA margin improved by 110 bps YoY to 5.1% and is expected to increase by another 30 bps in FY24. The firm plans to improve its margin by adding more products under original design manufacturing and backward integration, and a capex of Rs 400 crore for FY24. The stock shows up in thescreener with growth in quarterly net profit and increasing profit margin.

ICICI Securities says Dixon Technologies has the ability to deliver revenue and PAT growth of 42.5% and 65% respectively in FY24. However, the stock’s recent run-up discounts all its near-term positive outlook. The brokerage maintains a ‘Hold’ rating on the stock. It is currently in the Sell zone and trading above consensus estimates. 

  1. Lupin: This pharmaceuticals company rose by 6.4% in intra-day trade on Wednesday and touched its 52-week high of Rs 885.3. This comes as the US FDA approves the company’s generic version of Spiriva, a drug used to treat patients with COPD (Chronic Obstructive Pulmonary Disease). According to the management, this is the first generic approval for Spiriva in the US, making Lupin the first Indian pharmaceutical firm to get it. The drug has an estimated annual sales of $1.2 billion in the US as of March 2023. This is expected to help the company’s operations in the US as it will have the first-mover advantage for two-three years.

However, the street’s outlook on the company varies after this announcement. Axis Direct is optimistic about the approval, expecting Lupin to expand its market share and generate $100 million in sales from the generic drug in FY24. The brokerage also anticipates improved margins on the back of lower raw materials costs. 

On the other hand, ICICI Securities maintains its ‘Sell’ rating, as it believes the firm is trading at expensive levels. However, it has increased the target price on the stock as it sees the company’s new launches driving margin expansion and revenue growth in FY24. According to Trendlyne’s Forecaster, Lupin’s annual revenue and net profit are estimated to grow by 11.7% and 176.7% in FY24 respectively.  

The pharma giant’s new product launches in the US market look promising but the introduction of the Inflation Reduction Act of 2022 may dampen market conditions. The US government is focused on lowering drug prices for American consumers, and the Act includes provisions to bring down prescription drug costs across the board and reduce government spending. This has led to pharmaceutical industry lobby groups suing the US government. 

  1. Larsen & Toubro: This construction & engineering stock touched its all-time high of Rs 2,427 per share on Friday after signing a contract with DRDO (Defence Research & Development Organisation). The stock has risen 83.8% over the past five years, helping it appear in a screener of consistent high-return stocks.

The contract with DRDO involves the development of two indigenous air-independent propulsion systems for Indian Navy submarines. The company’s hydrocarbon business also won an order worth Rs 1,000-2,000 crore from an undisclosed overseas client on June 13. The order is for the engineering, procurement, construction and installation of hydrocarbon power plants.

The company’s order inflow for FY23 stood at approximately Rs 2.3 lakh crore, with 72% of orders coming from the domestic market and the remaining 28% from international clients. The management expects a 10-12% growth in its order book in FY24. Geojit BNP Paribas has upgraded the stock to ‘Buy’ from ‘Hold’, with a revised target price of Rs 2,610. This indicates a potential upside of 9.2%. The brokerage believes that the company has a healthy order pipeline, with a good mix of orders from both the government and private sectors.

The stock ranks high in Trendlyne’s checklist with a score of 71.4%, while it has a consensus recommendation of ‘Buy’ from 35 analysts. It appears in a screener of stocks where brokers have upgraded recommendations and target prices in the past three months. 

  1. InterGlobe Aviation (IndiGo): This airline company touched an all-time high of Rs 2,490 on Tuesday after placing an order worth $50 billion with the European aircraft manufacturer Airbus SE for 500 A320 Family aircraft. This is the largest-ever order in the global aviation industry and will be delivered between 2030 and 2035. The company already has a previous order of 480 aircraft, expected to be delivered by 2030.

    With this, IndiGo’s order book (a mix of A320NEO, A321NEO and A321XLR aircraft) consists of around 1,000 aircraft in the pipeline. The management expects IndiGo to benefit from the fuel-efficient A320NEO family aircraft, which will help reduce operating costs and deliver fuel efficiency.

The stock has risen by 2.5% in the past week till Friday, supported by an increase in its market share, which grew by 3.9 percentage points to 61.4% in May. Due to the recent rise in stock price, the company makes it to a screener of stocks with high momentum.

Following the order announcement, ICICI Securities maintains its ‘Buy’ rating with a target price of Rs 3,000, implying an upside of 21.1%. According to the brokerage, the repeat order indicates consistency in its business strategy. 

  1. Rail Vikas Nigam (RVNL): This execution arm of Indian railways opened 5.2% lower on Tuesday, following reports of challenges faced by the Vande Bharat train project. According to reports, RVNL has requested a higher stake in the joint venture (JV) with Russian company TMH Group’s Metrowagonmash. 

The consortium, which won the bid to supply 200 Vande Bharat sleeper trains in March 2023, originally had RVNL holding a 25% stake in the JV. Due to US sanctions on the Russian TMH Group, the Indian government has reportedly asked RVNL to be the majority shareholder to protect the JV. While RVNL is keen to take a higher stake of 69%, it clarified that reports on breaking the JV were “false”. The company added that the MoU is still valid. The Railway Ministry has asked the issue to be resolved at the earliest or a re-tender of the Rs 36,000 crore project will be undertaken.

RVNL’s stock is up by 305.2% in the past year and rose by 4.2% intra-day on Wednesday. This growth can be attributed to its huge order book of Rs 56,000 crore. Additionally, it recently bagged an order worth Rs 1,731 crore from Chennai Metro Rail for the construction of underground stations. RVNL has lately been diversifying from Railway projects and expanding into other EPC projects like highways, metros, and ports. 

Currently, RVNL’s average execution period is 2.5 to 3.5 years. However, JVs with technological partners aim to cut down the execution time and also improve its margins. Successful execution is key for RVNL's growth. The company features in a screener for stocks with strong cash-generating ability from core businesses.

Trendlyne's analysts identify stocks that are seeing interesting price movements, analyst calls, or new developments. These are not buy recommendations.

 
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Trendlyne Marketwatch
23 Jun 2023
Market closes lower, HMA Agro Industries’ Rs 480 crore IPO gets bids for 1.6X of shares

Trendlyne Analysis

Nifty 50 closed at 18,665.50 (-105.8, -0.6%), BSE Sensex closed at 62,979.37 (-259.5, -0.4%) while the broader Nifty 500 closed at 16,011.80 (-129, -0.8%). Of the 1,973 stocks traded today, 486 were on the uptick, and 1,429 were down.

Indian indices extended their losses from the afternoon session and closed in the red. The benchmark Nifty 50 index fell over 100 points and closed below the 18,700 mark. Adani Group companies closed deep in the red after Bloomberg reported that US authorities are looking into what representations Adani Group made to its American investors following Hindenburg Research’s report. 

Nifty Smallcap 100 and Nifty Midcap 100 closed in the red, underperforming the benchmark index. Nifty Metal and Nifty Media closed over 2% lower than their Thursday’s close. According to Trendlyne’s sector dashboard, Hardware Technology & Equipment was the top-performing sector of the week.

Most Major European indices traded in the red, taking cues from the Asian indices. US index futures also trade in the red amid weak global cues. Brent crude oil futures traded over 1.2% lower after falling nearly 3.6% on Thursday.

  • Bharat Petroleum Corp sees a short buildup in its June 29 future series as its open interest rises 14.8% with a put-call ratio of 0.34.

  • Shilpa Medicare's stock rises as its board approves a rights issue of equity shares worth Rs 325 crore. The board also approves the amalgamation of Shilpa Therapeutics into the company. The company appears in a screener of stocks with low debt.

  • Bank of Maharashtra, NMDC Steel and Union Bank of India trade below their second support or S2 levels as market trades lower.

  • Adani Group stocks like Adani Enterprises, Adani Power, Adani Transmission and Adani Ports & SEZ are falling as reports suggest that US regulatory authorities have sent inquiries to American investors with large holdings in the conglomerate. The investigation follows Hindenburg Research's report. Adani Group claims that it is not aware of any subpoenas to investors.

  • ABB India, Titan Co, Godrej Properties, Siemens and APL Apollo Tubes outperform the Nifty 500 index over a five-year period.

  • HMA Agro Industries’ Rs 480 crore IPO gets bids for 1.6X the available 60.5 lakh shares on offer on the last day of bidding. The retail investor quota gets bids for 0.96X of the available 30.3 lakh shares on offer.

  • UPL falls as it transfers its specialty chemical business to its subsidiary, UPL Specialty Chemicals, on a slump sale basis. The transaction is valued at Rs 3,572 crore based on fair market value. The company appears in a screener of stocks with reduced MF holdings.

  • Nomura remains positive on the banking sector in the medium to long term on the back of decade-low NPLs (non-performing loans), strong return on assets (RoAs), and bank capitalisation at or near all-time highs. The brokerage identifies ICICI Bank, Axis Bank and IndusInd Bank as its top picks.

  • Movies & entertainment, electronic components, advertising & media and healthcare servicesindustries rise more than 6% in the past week.

  • Lupin is rising as it launches rufinamide oral solution, a generic version of banzel oral suspension used for preventing and controlling epileptic seizures. The drug has an estimated sales of $72 million in the US in the year ending April 2023, according to IQVIA.

  • KRChoksey maintains its ‘Buy’ rating on Hindustan Unilever with a target price of Rs 3,109. This indicates an upside of 18%. The brokerage is optimistic about the company’s prospects given its market share gains, volume growth, premiumisation efforts and expansive distribution network. It expects the firm’s revenue to grow at a CAGR of 9.6% over FY23-25.

  • PSU bank stocks like State Bank of India, Punjab National Bank, Canara Bank and Union Bank of India are falling in trade. Barring Bank of Baroda and Indian Bank, all other constituents of the broader sectoral index, Nifty PSU Bank, are trading in the red.

  • Rajesh Sharma, Managing Director of Capri Global Capital, says the company targets growth of more than 30% in FY24. He also expects net interest margins (NIMs) to improve and exceed 11%.

  • Consumer durables stocks like Rajesh Exports, Voltas, Havells India, VIP Industries and Blue Star are falling in trade. Barring Crompton Greaves Consumer Electricals, all other constituents of the broader sectoral index, BSE consumer durables, are trading in the red.

  • Jefferies upgrades its rating on Shriram Finance to a 'Buy' rating from 'Hold' with an upgraded target price of Rs 2,130, according to reports. This indicates a potential upside of 28.6%. The brokerage believes that factors like increasing demand outlook in the commercial vehicles segment and clearance of overhang concerns will aid the lender to drive revenue growth. It expects the company's net profit to grow at a CAGR of 16% over FY23-26.

  • Adani Enterprises falls more than 6% and ranks low on Trendlyne's checklist with a score of 43.5%. The stock is in the 'Sell' zone and appears in a screener with high promoter pledge.

  • Voltas is falling as UBS downgrades its rating to ‘Neutral and lowers the target price by 30% to Rs 840. The brokerage expects the industry challenges to persist, making it difficult for Voltas to expand its market share and improve its operating profit margin.

  • Aether Industries is falling despite raising Rs 750 crore through a qualified institutional placement (QIP) approved by its board of directors. The QIP involved issuing 80 lakh equity shares to 36 qualified institutional buyers at an issue price of Rs 936 per share. SBI Mutual Fund, Axis Mutual Fund, and Edelweiss Mutual Fund emerged as the largest buyers, acquiring stakes of 40%, 11.1%, and 6.7% respectively.

  • Metal stocks like Adani Enterprises, Hindalco Industries, National Aluminium Co, APL Apollo Tubes and Jindal Steel & Power are falling in trade. The broader sectoral index, Nifty Metal, is also trading in the red.

  • Khurshed Yazdi Daruvala, promoter of Sterling and Wilson Renewable Energy, sells a 0.79% stake in the company on Thursday. He now holds a 2.87% stake.

  • Reports suggest that 44.56 lakh shares (11% equity) of Landmark Cars, amounting to Rs 293 crore, have changed hands in a block deal. TPG Capital is the likely seller in this transaction.

  • Vedanta denies media reports about the sale of the Sterlite Copper Plant in Tamil Nadu. The firm says that the news articles are wrong, baseless and incorrect. It shows up in a screener for stocks with low PE ratios.

  • Murali S, promoter of Craftsman Automation, sells a 3.79% stake in the company on Thursday. He now holds 5.2%.

  • BofA Securities maintains its ‘Buy’ rating on One97 Communications (Paytm) with a target price of Rs 1,020. The brokerage expects a rapid improvement in the company’s margins. However, it highlights the risks of increased competition from peers, including PhonePe and Jio Financial Services.

  • Man Infraconstruction rises after securing a letter of acceptance for an order worth Rs 680 crore from Bharat Mumbai Container Terminal. The order is for the implementation of phase two infrastructure works at the fourth container terminal at Jawaharlal Nehru Port, Navi Mumbai. The project is expected to be completed within 2.5 years.

  • Coforge completes the acquisition of the remaining 20% stake in its subsidiary, Coforge Business Process Solutions, for Rs 336.9 crore. This brings the company's total stake to 80%. It shows up in a screener for stocks with improving cash flows from operations over the past two years.

Riding High:

Largecap and midcap gainers today include Aurobindo Pharma Ltd. (699.15, 4.09%), IndusInd Bank Ltd. (1,308.70, 2.83%) and Aditya Birla Capital Ltd. (175.00, 1.95%).

Downers:

Largecap and midcap losers today include Adani Enterprises Ltd. (2,233.55, -6.83%), Adani Transmission Ltd. (757.50, -5.83%) and Adani Power Ltd. (242.40, -5.53%).

Volume Rockets

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

Top high volume gainers on BSE included Natco Pharma Ltd. (674.00, 7.50%), ICICI Securities Ltd. (563.05, 7.04%) and DCM Shriram Ltd. (917.40, 5.86%).

Top high volume losers on BSE were Voltas Ltd. (750.50, -4.04%), Bharat Petroleum Corporation Ltd. (359.60, -3.70%) and Sterling and Wilson Renewable Energy Ltd. (289.15, -2.97%).

Chemplast Sanmar Ltd. (440.60, -1.40%) was trading at 5.2 times of weekly average. HLE Glasscoat Ltd. (661.80, -1.50%) and Gillette India Ltd. (4,835.00, 5.44%) were trading with volumes 4.8 and 4.3 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

11 stocks overperformed with 52-week highs, while 2 stocks were underachievers and hit their 52-week lows.

Stocks touching their year highs included - Aurobindo Pharma Ltd. (699.15, 4.09%), Blue Star Ltd. (785.85, -1.03%) and InterGlobe Aviation Ltd. (2,475.05, -0.08%).

Stocks making new 52 weeks lows included - City Union Bank Ltd. (119.90, -3.27%) and Adani Total Gas Ltd. (634.30, -3.18%).

7 stocks climbed above their 200 day SMA including DCM Shriram Ltd. (917.40, 5.86%) and Swan Energy Ltd. (271.25, 1.84%). 22 stocks slipped below their 200 SMA including India Cements Ltd. (209.70, -3.90%) and Dr. Lal Pathlabs Ltd. (2,109.85, -3.24%).

 
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Trendlyne Marketwatch
22 Jun 2023
Market closes lower, HMA Agro Industries’ Rs 480 crore IPO gets bids for 0.91X of shares

Trendlyne Analysis

Nifty 50 closed at 18,771.25 (-85.6, -0.5%), BSE Sensex closed at 63,238.89 (-284.3, -0.5%) while the broader Nifty 500 closed at 16,140.80 (-100.2, -0.6%). Of the 1,965 stocks traded today, 588 were gainers and 1,321 were losers.

Indian indices extend losses from the afternoon session and close in the red, with Nifty 50 hovering below the 18,800 mark. The volatility index, Nifty VIX, rose above 11 at the close. Fitch Ratings revised India’s GDP growth for FY24 to 6.3% from an earlier estimate of 6%.

Nifty Smallcap 100 and Nifty Midcap 100 closed in the red, following the benchmark index. Nifty Metal and Nifty Media closed flat from Wednesday’s closing levels. All other sectoral indices closed lower. According to Trendlyne’s sector dashboard, fertilizers emerged as the top-performing sector of the day with a rise of over 0.9%. 

Most European indices trade in the red. US indices futures trade lower indicating a negative start. Bank of England is set to increase interest rates by at least 25 bps as UK's inflation rate for May remained stubbornly high at 8.7% against an expectation of 8.4%.

Indian indices pare gains from themorning session and trade in the red, with the Nifty 50 hovering below the 18,800 mark. India's volatility index, Nifty 50 VIX, rises above 11. Piramal Enterprises sells an 8.3% stake in Shriram Finance for approximately Rs 4,824 crore. 

  • Money flow index (MFI) indicates that stocks like Poly Medicure, Britannia Industries, Blue Dart Express and Graphite India are in the overbought zone.

  • Fortis Healthcare signs an agreement to sell its Vadapalani Hospital in Chennai to Sri Kauvery Medical Care for Rs 152 crore. The sale is part of the company’s ongoing portfolio rationalisation strategy to deepen its presence in select geographic clusters.

  • Max Financial Services rises more than 6% and ranks high on Trendlyne's checklist with a score of 56.5%. The stock is in the 'Buy' zone and has 'Buy' ratings from 12 out of 13 brokerage firms. It appears in a screener of stocks with no debt.

  • Larsen & Toubro signs a contract with DRDO (Defence Research & Development Organisation) to develop two indigenous air-independent propulsion systems for submarines of the Indian Navy. The company shows up in a screener for stocks with consistently high returns over the past five years.

  • Credit rating agency Fitch Ratings raises its forecast for India’s GDP growth to 6.3% in FY24, from the earlier estimate of 6%. The rating agency notes that India’s GDP growth in January-March exceeded expectations, and there has been a recovery in the manufacturing sector.

  • Swan Energy, BSE, ICICI Securities and Trident are trading above their third resistance or R3 levels, despite Nifty 500 trading in the red.

  • HMA Agro Industries’ Rs 480 crore IPO gets bids for 0.91X the available 60.5 lakh shares on offer on the third day of bidding. The retail investor quota gets bids for 0.48X of the available 30.3 lakh shares on offer.

  • Hazoor Multi Projects is surging as it bags an order worth Rs 352.8 crore from Apco Infratech for the construction of an eight-lane access-controlled expressway for the Vadodara-Mumbai Expressway project.

  • Sugar stocks like Shree Renuka Sugars, EID Parry (India), Balrampur Chini Mills, Dalmia Bharat Sugar & Industries and Dhampur Sugar Mills are rising in trade. The broader sugar industry is also trading in the green.

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

  • According to reports, 30.3 lakh shares (0.1% equity) of Sun Pharmaceutical Industries, amounting to Rs 300.5 crore, have changed hands in a large trade.

  • L&T Technology Services extends its partnership with PCT to provide cloud-based solutions to the aerospace, defence and transportation sectors, according to reports. The companies will provide digital support for design and manufacturing to their shared clients.

  • Rail Vikas Nigam emerges as the lowest bidder for two projects commissioned by Madhya Pradesh Poorv Kshetra Vidyut Vitaran Co, Jabalpur. As a result, the company has secured orders worth Rs 281 crore. It appears in a screener of stocks with growing net profit.

  • Carborundum Universal appoints Sridharan Rangarajan as its Managing Director (MD), effective August 3, 2023. The decision comes after the current MD, Ananthaseshan, expressed his desire to retire. Sridharan is currently the Director of Finance and Strategy for the company.

  • Glenmark Pharmaceutical falls as its facility in Monroe, North Carolina, receives a warning letter from US FDA. The company appears in a screener of stocks with declining RoE.

  • According to Morgan Stanley, the near-term outlook on the IT sector continues to be challenging. The brokerage identifies Infosys, HCL Technologies and LTIMindtree as its preferred picks in the sector. It also downgrades its rating on Cyient to ‘Equal-weight’ from 'Overweight' due to expensive valuations following the recent uptrend in share price.

  • Sharekhan maintains its ‘Buy’ rating on Mahindra & Mahindra with a target price of Rs 1,550. This implies an upside of 12.3%. The brokerage remains optimistic about the firm due to its improvement in operating performance, market share gains, new launches and focus on scaling. It expects the company’s net profit to grow at a CAGR of 14% over FY23-25.

  • Tata Consultancy Services (TCS) expands its partnership with UK-based National Employment Savings Trust (NEST) through a contract worth £1.5 billion (Rs 1.6 lakh crore). Although the amount is for 18 years, the agreement has been signed for an initial tenure of 10 years with a value of £840 million (Rs 8788.2 crore). The contract will involve TCS enhancing the member experience for NEST.

  • IT stocks like Coforge, Infosys and Mphasis are falling in trade. All constituents of the broader Nifty IT index are also trading in the red.

  • According to reports, 1.84 crore shares (2.5% equity) of Delhivery, amounting to Rs 8.6 crore, have changed hands in the pre-open. Carlyle is the likely seller in this transaction.

  • Kavitha Reddy Gangapatnam, promoter of MTAR Technologies, sells a 0.37% stake in the company on Wednesday. She now holds a 1.99% stake.

  • Sansera Engineering is rising following reports of Client Ebene planning to sell a 9% stake (47.8 lakh shares) and CVCIGP II Employee Ebene intending to sell a 5% stake (26.8 lakh shares) in the company at a discount of up to 5% from Wednesday’s closing price. It appears in a screener of stocks with strong momentum.

  • US Federal Reserve Chairman Jerome Powell said on Wednesday that further interest rate hikes are likely to bring down inflation below 2%. The US Fed had announced a pause in rate hikes during their meeting last week.

  • Bharti Airtel acquires a 12.1% equity stake (2,83,400 shares) in Egan Solar Power for Rs 1.3 crore, at an average price of Rs 47.2 per share. The acquisition aims to comply with the captive power plant provisions of electricity laws.

  • Piramal Enterprises sells an 8.3% stake in Shriram Finance for approximately Rs 4,823.7 crore, while the Government of Singapore buys a 2.4% stake in the company for Rs 1,409.4 crore.

Riding High:

Largecap and midcap gainers today include Supreme Industries Ltd. (3,174.45, 4.07%), Max Financial Services Ltd. (762.95, 3.25%) and Polycab India Ltd. (3,483.95, 1.92%).

Downers:

Largecap and midcap losers today include IDFC First Bank Ltd. (77.60, -5.60%), Aditya Birla Capital Ltd. (171.65, -4.69%) and Mahindra & Mahindra Financial Services Ltd. (312.85, -3.99%).

Volume Rockets

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

Top high volume gainers on BSE included Swan Energy Ltd. (266.35, 8.10%), Aether Industries Ltd. (1,165.95, 6.01%) and KEI Industries Ltd. (2,353.60, 5.05%).

Top high volume losers on BSE were India Cements Ltd. (218.20, -5.75%), Indiabulls Housing Finance Ltd. (114.55, -2.22%) and Gujarat Narmada Valley Fertilizers & Chemicals Ltd. (587.65, -2.06%).

ICICI Securities Ltd. (526.00, 2.11%) was trading at 7.7 times of weekly average. Coromandel International Ltd. (950.35, 0.86%) and Trident Ltd. (34.15, 2.25%) were trading with volumes 6.3 and 5.8 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

19 stocks took off, crossing 52-week highs,

Stocks touching their year highs included - Ajanta Pharma Ltd. (1,495.00, -0.99%), Apollo Tyres Ltd. (415.10, -1.04%) and Bank of Baroda (193.30, -2.42%).

15 stocks climbed above their 200 day SMA including Swan Energy Ltd. (266.35, 8.10%) and Max Financial Services Ltd. (762.95, 3.25%). 15 stocks slipped below their 200 SMA including Vodafone Idea Ltd. (7.45, -3.87%) and Aegis Logistics Ltd. (326.65, -3.70%).

 
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The Baseline
21 Jun 2023
Did Indian startups overestimate the online market? | Stocks that may see high revenue growth in FY24
By Deeksha Janiani

The Indian stock market has been very upbeat, thanks to a surge in foreign fund investment. The Sensex briefly touched a record high today, at 63588.3.

But one major part of the primary markets has stalled: so far this year, not a single tech startup has come out with an IPO. This is quite a contrast to the nine major startup IPOs during the bull run of 2021.  

Technology startups have delayed their IPOs, reduced their planned offer size or dropped their plans altogether. Take the case of Ixigo, a travel company whose DRHP expired in March, with no plans for a resubmission in the near future. Similarly, OYO reduced its offer size by nearly half to $400-600 million in its latest filing. 

What is holding back these companies? One factor is the underperformance of startup stocks that recently listed. And, the increase in interest rates significantly hit the excitement around startups in public markets and private capital. 

Startups were being funded at mind-boggling valuations as investors were afraid of missing out on the 'next big thing', and seemingly unconcerned with business models or profitability. Capital was cheap, as the Fed cut its interest rate to near zero in March 2020 and kept it there till March 2022. The mood was exuberant. For instance, Groww's valuation tripled to $3 billion post its series E funding in October 2021. 

Now, the funding taps are drying up, and venture capital for Indian startups has declined in recent quarters. The recent rise in interest rates is only partly to blame here. 

Scott Shleifer, partner at Tiger Global, a key backer of Indian startups, noted his disappointment during an investor call in February, “Returns on capital in India have sucked historically. If you look at internet market-leaders like Google, Facebook, or Tencent, revenue for them got bigger than costs a decade ago. But that did not happen in India”. 

So are startup investors right to worry?  

In this week’s Analyticks:

  • Are startups overestimating the Indian market opportunity?
  • Screener: New-age startups that may clock high revenue growth in FY24

Let’s get into it.

Market size questions: Did tech startups see the cake as bigger than it actually is?                 

Several Indian unicorns (startups valued at over $1 billion) have witnessed big markdowns in their valuations since the second half of 2022. American investment company Blackrock wrote off over 60% of Byju’s valuation in its recent quarterly filing. 

A company’s valuation is decided by two key factors: the estimated future growth rate and the discounting rate. With the rise in interest rates, the discounting rate increases, reducing the present value. But since most startups are burning cash, the future growth rate is much more relevant here.

The future growth of a startup depends on the market size, and its ability to capture a piece of it. And after years of pouring billions of dollars into the Indian market, it looks like startups and venture capitalists may have overestimated its true size.

A relatively small user base is powering online spending

At a conference in 2022, Narayana Murthy, former chairman of Infosys, said, “New-age startups have by habit, overestimated the Indian market. In the mid-90s, many foreign companies set shop in India, estimating that there are 200 million middle-class Indians who are willing to buy. And they found that they weren’t there. The same story has repeated today.”

Blume Ventures estimates that the real target market for tech startups consists of 30 million high-income households, with a total headcount of 120 million. The average per capita income of these households is $12,000 per annum (nearly Rs 10 lakh). 

Nithin Kamath, co-founder of Zerodha, suggests that the addressable market for B2C tech startups is a maximum of 150 million users. A Ken report estimates this market to be even smaller, at 70 million. Within this, just 10 million users are India’s ‘California users’ - the digitally savvy customers who account for 40% of India's online spends. 

Let’s consider another estimate of the number of users driving online spending. According to Redseer and TRAI, out of India’s 850 million internet subscribers, only 45 million are considered mature users who contribute significantly to online transactions. 

In the case of Zomato, only 5% of users drive 33% of its orders. Similarly, payment platforms like Paytm, PhonePe, Google Pay and UPI rely on 6.5% of users who are responsible for 44% of the total transactions. 

Flat growth in internet subscribers a concern for online business

Internet subscribers in India, the main driver for online businesses, grew at a CAGR of 20% between FY15-FY20. The broadband user base rose even faster, due to events like demonetization and the launch of cheap or free plans from Reliance Jio.  

But this user base growth has fallen to single digits post FY21. This isn’t a good sign for tech startups that are banking on high future growth. Ideally, as more people get connected to the internet, startups have a larger pool of users, some of which become their customers. 

If we go by Inc42 estimates, the internet user base in India may rise to over 130 crore by 2030, translating to a CAGR of roughly 6%. This is a rosy number, since the current growth rate has already fallen below that. 

Growth in e-commerce market slowed in FY23

The e-commerce sector contributes the largest share of 44% to the Indian internet economy, according to the ‘India eConomy Report’. This segment grew at an impressive CAGR of 40% between FY20 and FY22 due to intermittent shutdowns of physical stores during the pandemic. 

However, the growth in e-commerce GMV slowed to 22% in FY23 as the economy reopened. Accordingly, the e-commerce sector’s demand for warehousing also declined by 71%.

The impact of the slowing e-commerce market was also visible in the performance of Delhivery. The logistics tech player saw its revenues fall by double-digits in Q4FY23.

Commenting on this, Falguni Nayar, CEO of Nykaa, said in the recent earnings call, “On the fashion front, the physical store network of domestic brands was very large, and as these domestic stores opened, there was some adversity in growth.” 

Growth pace slows for listed tech startups

The overall slowdown in discretionary demand from November 2022 has trickled down to consumer-facing tech startups as well.

Zomato, for instance, saw a decline in user growth for its food delivery business. The company attributes this decline to its decision to shut operations in 225 cities, to focus on achieving profitability. The gross order value has remained within the Rs 6,400-6,700 crore range since Q1FY23. 

Nykaa also experienced slower order growth in its flagship beauty division post-Covid, while the average order value was more or less flat. Order trajectory in the emerging fashion segment has been steady between 1.3 million and 1.5 million since Q2FY22. 

As for Paytm, the growth in its merchant payments or B2B segment was much faster than its B2C growth.  

Foreign analysts expect India's internet economy to touch almost $1 trillion by 2030, with e-commerce contributing 50% to this number. Essentially, they are factoring in a 25% growth CAGR. But tech startups, including e-tailers, food tech, and edtech, are once again competing with brick-and-mortar establishments, while battling the seemingly stubborn preference among Indians to shop offline. 

Achieving high growth will be difficult without an increase in customer wallet spends and higher per capita incomes. Indians need to get rich quick, for tech startup dreams to come true.

Screener: New-age tech startups with strong Forecaster estimates for FY24 revenue growth

As FY24 unfolds, the growth prospects of new-age tech startups are under scrutiny. This screener shows startups that are likely to clock robust revenue growth in FY24, according to Trendlyne’s Forecaster.

Among the companies listed, RateGain Travel has the highest revenue growth estimates for FY24, followed by Easy Trip Planners, CE Info Systems, Zomato, Paytm and Nykaa. Notably, PB Fintech, Zomato and Paytm are projected to continue making losses in FY24, although at a lower rate compared to previous years.

According to analysts, RateGain Travel is expected to clock a revenue growth of 56% in FY24. The company posted a 70% YoY rise in Q4 revenue, while its net profit improved by 2.9x. This was driven by improvements in revenue from the distribution, marketing technology, and desktop as a service segments. Analysts expect its profits to double in FY24.

Consensus estimates of analysts see Easy Trip’s revenue rising by 39% in FY24, with a 32% growth in net profit. The company witnessed a YoY revenue rise of over 90% in Q4, backed by improvement in gross booking revenue.

CE Info Systems comes in next with a Trendlyne Forecaster revenue growth estimate of 35.1% in FY24 and a net profit growth estimate of nearly 25%. The company’s revenue rose by 28.1% YoY in Q4FY23, which was aided by a rise in customer base and order book. 

You can find some popular screenershere.