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Trendlyne Marketwatch
Trendlyne Marketwatch
11 May 2023
Market closes flat, Asian Paints' Q4 profit rises by 44% YoY to Rs 1,258.4 crore

Trendlyne Analysis

Nifty 50 closed at 18,297.00 (-18.1, -0.1%), BSE Sensex closed at 61,904.52 (-35.7, -0.1%) while the broader Nifty 500 closed at 15,484.05 (18, 0.1%). Of the 1,947 stocks traded today, 1,143 showed gains, and 716 showed losses.

Indian indices closed flat after switching between losses and gains on a volatile day of trade. The benchmark Nifty 50 settled just below the 18,300 mark. Asian Paints closed over 3.3% higher after its Q4 net profit rose 44% YoY to Rs 1,258.41 crore and its revenue increased by 11.5% YoY.

Nifty Smallcap 100 and Nifty Midcap 100 closed in the green, outperforming the benchmark index. Nifty FMCG and Nifty Bank closed higher than Wednesday’s close. According to Trendlyne’s sector dashboard, commercial services & supplies was the top-performing sector of the day.

European stocks traded in the green, following US indices futures, which also traded higher. However, major Asian indices closed flat or lower amid mixed global cues. Brent crude oil futures traded lower but crude oil prices are up over 5% in the last five trading sessions.

  • Money flow index (MFI) indicates that stocks like Samvardhana Motherson International, Chemplast Sanmar, Lux Industries and Adani Power are in the overbought zone.

  • Dr. Lal Pathlabs is falling as its net profit declines by 8.2% YoY to Rs 57 crore in Q4FY23. Although its revenue has risen marginally by 1.1% YoY, revenue from the covid segment has plunged by 83.4% YoY. The company shows up in a screener of stocks with a low Piotroski score.

  • NBCC is rising as it bags an order worth Rs 264.1 crore to carry out construction and development projects on the Mahanadi campus of Ravenshaw University, Cuttack, Odisha.

  • Education, forest products and airlines industries rise over 17% over the past month.

  • Varun Beverages, Ambuja Cements and SBI Cards & Payments outperform the Nifty 50 index over the week post their Q4FY23 results.

  • Alkyl Amines Chemicals is falling despite its Q4FY23 net profit rising 4.8% YoY to Rs 48.6 crore. Its EBITDA margin also grows by 170 bps YoY to 18.7%. However, its revenue has declined 3.2% YoY. The stock shows up in a screener for companies with declining net cash flows.

  • Bharat Madan, CFO of Escorts Kubota, says the company targets a 25% growth in exports in FY24. He adds that the top-line growth will be around high single-digit to double-digit, and that margins are expected to improve in the near term.

  • Sanofi India surges more than 5% in trade as its board of directors approve the demerger of its consumer healthcare business into its wholly owned subsidiary named Sanofi Consumer Healthcare India. It shows up in a screener of stocks with high volume and high gain.

  • Asian Paints' Q4FY23 profit rises by 44% YoY to Rs 1,258.41 crore, while its revenue increases by 11.5% YoY. The rise in profit is due to volume and value growth in decorative and non-automotive industrial businesses. The company shows up in a screener for stocks with an improving book value per share for the past two years.

  • SoftBank's SVF India Holdings (Cayman) sells a 2.1% stake in One97 Communications (Paytm) in multiple open market transactions since February 2023 to comply with market regulator SEBI's takeover regulations.

  • The Bank of England is expected to raise interest rates by 25 bps to 4.5%, the highest level since 2008, in order to combat high inflation in the UK.

  • HDFC Securities downgrades its rating on Aditya Birla Fashion & Retail (ABFRL) to ‘Add’ from ‘Buy’ and lowers the target price to Rs 215 from Rs 270. This implies an upside of 7%. The downgrade is on the back of concerns that ABFRL’s acquisition of TCNS Clothing Co will increasingly weaken its balance sheet.

  • Adani Enterprises is rising as its board of directors considers raising funds through the sale of equity shares. The company has not yet disclosed the amount of capital it aims to raise through this plan. The board meeting to discuss the approval of this fundraising strategy is scheduled for May 13.

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

  • R Chandramogan, Chairman of Hatsun Agro Products, says the company’s Q4 margins have been affected by dairy inflation, but expects it to improve as commodity prices cool down. He also expects double-digit revenue growth for the company in FY24.

  • BSE Capital Goods is falling despite most stocks trading in the green. The sectoral index's decline can be attributed to the drop in the price of its constituent, Larsen & Toubro.

  • Procter & Gamble Hygiene & Healthcare is rising after reporting a 60.4% YoY increase in net profit to Rs 165 crore in Q4FY23, aided by one-time tax returns of Rs 57.5 crore. However, the company's revenue declines by 9.3% YoY due to a reduction in sales. It appears in a screener of stocks with declining quarterly revenue.

  • Gujarat Gas is rising despite its Q4FY23 net profit declining 16.3% YoY to Rs 370.5 crore and revenue falling by 14.7% YoY. The company’s total gas volumes have risen 22% QoQ due to the sharp correction in spot LNG prices, which it passed on to its industrial customers. The stock shows up in a screener for companies with low debt.

  • Jefferies maintains its ‘Buy’ rating on Nazara Technologies with a target price of Rs 700, citing an attractive valuation despite a poor margin outlook. However, the brokerage, lowers revenue estimates by 2-3% and margin estimates by 50-80 bps for FY24/25.

  • Reports suggest that the Income Tax Department is conducting searches at Mankind Pharma’s offices in New Delhi, causing the stock to fall by 4.5%. The stock was listed on the bourses on May 9.

  • Dr. Reddy's Laboratories is falling despite reporting a nearly 10x YoY rise in profit to Rs 960.1 crore in Q4FY23, while revenue increases 15.3%. The profit rise is due to the high impairment cost of non-current assets in Q4FY22. The board recommends a final dividend of Rs 40 per share for FY23. The company features in the screener for stocks with a current PE ratio of less than three, five and ten years PE.

  • A consortium of Rail Vikas Nigam and Siemens bags an order worth Rs 300 crore for building and installing substations for the Mumbai metro line. Rail Vikas Nigam has touched its 52-week high in the past week, while Siemens reached its 52-week high in today's trading session.

  • Godrej Consumer Products is rising as its Q4FY23 net profit increases by 24.5% YoY to Rs 452 crore. The company's raw material costs have declined by 3.4% and sales revenue improved by 9.6% YoY during the same period. Sales have grown across India, Indonesia, Africa, the USA and the Middle East, but fell in Latin America markets.

  • Larsen & Toubro’s Q4FY23 net profit rises 10% YoY to Rs 3,986.7 crore despite a 20% increase in input costs. Its revenue also increases across all segments, with hi-tech manufacturing, IT & Technology growing by more than 20% YoY. The company’s order book at the end of FY23 stands at Rs 4 lakh crore.

Riding High:

Largecap and midcap gainers today include Vodafone Idea Ltd. (7.15, 5.93%), Gujarat Gas Ltd. (488.25, 5.49%) and SBI Cards and Payment Services Ltd. (865.65, 5.02%).

Downers:

Largecap and midcap losers today include Dr. Reddy's Laboratories Ltd. (4,532.00, -6.89%), Larsen & Toubro Ltd. (2,242.15, -5.17%) and Aditya Birla Capital Ltd. (163.95, -4.07%).

Crowd Puller Stocks

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

Top high volume gainers on BSE included TeamLease Services Ltd. (2,273.55, 9.59%), Sanofi India Ltd. (6,205.50, 8.86%) and Ratnamani Metals & Tubes Ltd. (2,389.30, 6.68%).

Top high volume losers on BSE were Dr. Reddy's Laboratories Ltd. (4,532.00, -6.89%), Larsen & Toubro Ltd. (2,242.15, -5.17%) and Hindalco Industries Ltd. (420.85, -3.57%).

Quess Corp Ltd. (389.05, 5.55%) was trading at 31.5 times of weekly average. Procter & Gamble Hygiene & Healthcare Ltd. (13,775.00, 0.44%) and Gujarat Gas Ltd. (488.25, 5.49%) were trading with volumes 15.7 and 8.2 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

22 stocks hit their 52-week highs,

Stocks touching their year highs included - Bajaj Auto Ltd. (4,540.40, -0.34%), Bharat Petroleum Corporation Ltd. (372.55, 0.11%) and Cera Sanitaryware Ltd. (6,831.00, 1.53%).

22 stocks climbed above their 200 day SMA including Sanofi India Ltd. (6,205.50, 8.86%) and Gujarat Gas Ltd. (488.25, 5.49%). 8 stocks slipped below their 200 SMA including Hindalco Industries Ltd. (420.85, -3.57%) and Divi's Laboratories Ltd. (3,329.20, -2.80%).

 
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The Baseline
10 May 2023
The New Oil: Shortages emerge in a key metal needed for EVs | Stocks outperforming post Q4 results
By Tejas MD

Sometimes it's hard to see how fast things are changing, until you take a step back. Look at transportation, for example. Electric vehicles used to be tiny, funny looking cars. Remember the Reva? Everything about the Reva was small - the battery life, mileage and leg room. You could sit in the backseat but not stretch your legs.

In the last ten years however, electric vehicles have become expensive, futuristic, and can walk like a crab into a parking space.

Electric cars are just one part of the big shift in the global energy landscape, as countries move from fossil fuels to renewable energy. Countries have set ambitious plans for how and when they will achieve 'net-zero' in emissions - the US and Europe plan to reach this goal by 2050, while India is targeting 2070. However, India also wants to decarbonize 50% of its energy consumption by 2030, just seven years from now. Hitting these targets will need bold regulation, as well as critical metals and minerals. 

Electric vehicles (EVs) are gaining popularity fast, and their sales surged by 60% in 2022. Now one in every seven cars sold globally is electric, and this is set to increase as battery costs fall: 

Despite the semiconductor shortageaffecting EV supply in 2021 and 2022, car buyers are snapping up electric vehicles. But the higher selling price of EVs, compared to traditional internal combustion engine (ICE) cars is a challenge. And a new chokepoint is now emerging: a copper supply crunch. 

High EV demand is expected to drive up the price of copper to $15,000 per tonne by 2025 (approx 60% above current prices). Copper is becoming the ‘new oil’, and holds the key to the switch to electric. 

In this week’s Analyticks: 

  • The 'new oil': Copper supply shortage will hamper the move to electric
  • Screener: Outperformers of Q4, which beat analyst estimates and are beating the Nifty after strong results

Looming copper supply issues put clean energy at risk

Governments globally are pushing for more renewable energy use, to address the climate and energy crisis. This has led to growing demand for electric vehicles (EVs), solar panels and transmission cables.

Clean energy generation has high copper usage, typically four to six times more than fossil fuels. Electric cars and bikes in particular, rely heavily on copper for the motor coil that drives the engine. 

As a result, copper demand is set to soar in the coming years. Bloomberg NEF predicts a copper supply deficit of more than six million tonnes per year by the early 2030s.

Countries are now scrambling to lock down imports and production of copper, the ‘new oil’. The world's attention is on top copper mining nations like Chile and Peru, which together produced about 34% of the total mined copper in 2022.  

According to S&P Global, the US is expected to import over 60% of its copper by 2035. Amid growing concerns about political instability in Chile and Peru, the US is shifting its focus to the African continent. 

In December 2022, US-based startup KoBold Metals announced plans to invest around $150 million to develop a new copper mine in Zambia. This is a significant move. Zambia is the second-largest copper producer in Africa, and China has the biggest presence there. China is Zambia’s largest infrastructure creditor, and also became the largest importer of copper ores in 2021. China imported over 34% of total copper by value globally in 2021. 

India however, has been slow to secure copper resources. Khanij Bidesh India, a joint venture between three PSUs - National Aluminium Company, Hindustan Copper and Mineral Exploration and Consultancy - was formed to obtain the minerals critical for India’s industrial growth, but it has not been very successful. 

Since the closure of the Sterlite copper plant in Tamil Nadu in 2018, which catered to around 40% of the domestic demand, India has been a net importer of copper. The plant's closure came after protests by locals, social and environmental activists who were worried about pollution. Vedanta-owned Sterlite Copper is now exploring plans to reopen the manufacturing facility.

As a net importer of copper, India could face shortages and fail to achieve its 30% EV vision by 2030. The country's copper demand is forecast to reach three million tonnes by 2030, even as it mines only 2.5% of the copper it needs. 

Copper supply deficit will worsen amid demand growth and roadblocks to mining

A 2001 Copper Association report predicted a copper supply shortfall after 65 years, based on the production rate at the time. But the report did not account for the increasing demand for copper as technologies changed. Now, copper demand is expected to rise by more than 50% between 2023 and 2040. But the metal’s supply is projected to increase by only 16%. 

A major driver of copper demand is the growth in electric vehicles. A decade ago, copper demand for transport was less than half of that in construction. By 2040, transportation demand is expected to be 33% higher. 

S&P Global’s worst-case projection puts the copper shortfall at around 20% of consumption by 2035. 

Although it seems logical for mining companies to raise production to meet growing demand, several factors make this difficult. A new copper mining project can take over ten years to complete and start production. In fact, no new copper discoveries are expected to be operational in the next three years.

Additionally, miners now use ore grades of 0.5% copper, a quarter of the concentration used a century ago, making mining more challenging and costly. 

Nobody wants a mine in their backyard

Mining companies are not very popular, because of the environmental impact. In leading copper mining countries like Chile and Peru, mining firms are facing political unrest and disagreements over taxes. In August 2022, mining CEOs warned during investor calls that Chile must reduce a proposed tax increase on copper production or risk losing investments. 

India needs to focus on ramping up its sources of copper, as the metal becomes central in the clean energy transition. As we already saw with Covid-era semiconductor shortages, supply chain issues can significantly impact manufacturing plans. The looming shortage of copper is no small problem. Countries like the US and China are proactively securing copper imports, and India must do the same. 

Screener: Outperformers of Q4, which beat estimates and are on the rise

In this edition, we look at a screener of stocks that have outperformed the Nifty 50 over the past week. These stocks have also seen a rise in operating profits, while beating Trendlyne's forecaster estimates for revenue or net profit in Q4FY23.

The screener includes stocks from the automobiles & auto components, oil & gas, banking & finance and hotels, restaurants & tourism sectors. Major stocks that show up in the screener are Bajaj Auto, Indian Hotels, Sona BLW Precision Forgings, IndiaMART InterMESH, KEI Industries and AU Small Finance Bank.

Bajaj Auto surpassed Forecaster’s revenue estimates by 5.2%, with a revenue of Rs 9,192.7 crore in Q4. The auto company saw a 21.8% YoY improvement in its operating profit, and increased its operating profit margin by 150 bps YoY to 18.5%. The stock rose 2.7% over the past week, outperforming the Nifty 50 index by 150 bps.

Indian Hotels’ revenue grew by 73.3% YoY to Rs 1,654.5 crore in Q4FY23, beating Forecaster estimates by 4.2%. The hotel company’s operating profit increased by an impressive 236.8% YoY, and the operating profit margin surged by 14.7 percentage points YoY to 32.9%. The stock rose 9.1% over the past week.

Sona BLW Precision Forgings saw its revenue increase by 32.6% YoY to Rs 748.5 crore in Q4FY23, beating estimates by 2.7%. The company’s operating profit grew by 48.8% YoY, helping its operating profit margin rise 246 bps YoY to 27.1% during the quarter. "I hope I never get tired of saying this," CEO Vivek Vikram Singh said, "but this was our best quarter ever, and our best financial year ever." The stock rose by 8.3% over the past week.

You can find more screeners here.

 
Trendlyne Marketwatch
Trendlyne Marketwatch
10 May 2023
Market closes higher, BofA Securities maintains 'Neutral' rating on Zomato

Trendlyne Analysis

Nifty 50 closed at 18,315.10 (49.2, 0.3%), BSE Sensex closed at 61,940.20 (178.9, 0.3%) while the broader Nifty 500 closed at 15,466.05 (45.5, 0.3%). Of the 1,955 stocks traded today, 1,029 were in the positive territory and 868 were negative.

Indian indices maintained their gains from the afternoon session and closed in the green. The Nifty 50 rose nearly 50 points and closed above the key 18,300 mark. The volatility index, India VIX rose above 13 at close.

Nifty Midcap 100 and Nifty Smallcap 100 closed in the green following the benchmark index. Nifty Media and Nifty Realty closed higher than Tuesday’s closing levels. Nifty IT closed lower, tailing the tech-heavy Nasdaq 100 closing in the red on Tuesday. According to Trendlyne’s sector dashboard, media was the top-performing sector of the day as it rose over 2%.

Most European indices traded in the red, tailing the US indices futures, which are trading lower than Tuesday’s closing levels. US President Joe Biden and Republican House Speaker Kevin McCarthy met on Tuesday to discuss raising the debt ceiling, which is essential to prevent the economy from defaulting on its debt. However, they have yet to reach an agreement.

  • Relative strength index (RSI) indicates that stocks like Apollo Tyres, Indian Hotels, InterGlobe Aviation and Syngene International are in the overbought zone.

  • Tata Motors touches a 52-week high of Rs 512.9 ahead of its Q4FY23 results on Friday. Reports suggest that the company is likely to report an improved performance as total wholesales for Jaguar Land Rover have seen a steady recovery. Trendlyne’s Forecaster expects a 16% QoQ rise in net profit for the company in Q4.

  • Deepak Nitrite, Aditya Birla Capital and Eicher Motors are rising ahead of their Q4FY23 results tomorrow.

  • Latent View Analytics falls over 10% in trade today as the company’s Q4FY23 net profit decreases 34.8% QoQ to Rs 34.2 crore. The company features in a screener of companies with declining net profits and profit margins (QoQ).

  • Amit Jatia, Vice-Chairman of Westlife Foodworld, says that the company targets sales growth of 7-9% moving forward. He expects the company’s margins to improve above 17% in FY24.

  • Sanofi India's board approves the demerger of its consumer healthcare business into a wholly-owned subsidiary, Sanofi Consumer Healthcare India, subject to the approval of its shareholders, as well as regulatory bodies such as the Securities and Exchange Board of India, BSE and NSE.

  • Varun Beverages and Equitas Small Finance Bank touch their 52-week highs of Rs 1,585 and Rs 78.95 respectively. Varun Beverage has risen 13.3% in the past month, while the latter increased by 11.55%.

  • Alkyl Amines Chemicals, Gujarat State Petronet and Balrampur Chini Mills fall 1.4%, 2.5% and 2.5% respectively over the past week, ahead of their Q4FY23 results tomorrow.

  • BofA Securities maintains its ‘Neutral’ rating on Zomato with a target price of Rs 72. The brokerage expects ONDC (Open Network For Digital Commerce), the new entrant, to be an important platform in the food delivery space.

  • IndusInd Bank, Cummins India, Petronet LNG and Sundaram Finance are trading above their second resistance or R2 level.

  • Electronic components, forest products and construction materials industries rise more than 14% in the past month.

  • Alembic Pharma receives an Establishment Inspection Report (EIR) from the US FDA for the inspection carried out at its solid-oral formulation facility at Jarod, Vadodara. The company has also started receiving ANDA approvals for this facility. Despite a flat market, the stock is trading in the green.

  • Cipla, Hindustan Petroleum and Max Financial Services’ weekly average delivery volumes rise ahead of their Q4FY23 results on Friday.

  • Amit Agarwal, the Group CFO of Raymond, says that the company’s branded apparel segment has achieved a top-line growth of 19% in Q4. He adds that the Ethnix brand is an important segment and the company targets to add 300 stores over three years. Raymond's PAT has surged 103% YoY to Rs 529 crore in Q4.

  • PSU bank stocks like Punjab National Bank, Indian Bank, Canara Bank and Bank of Baroda are falling in trade. The broader sectoral index Nifty PSU Bank is also trading in the red.

  • The expert panel set up by the Supreme Court to investigate allegations of fraud and stock manipulation by Adani Group (reported in the Hindenburg report) submitted its report to the Court yesterday. The matter is up for hearing before the Chief Justice of India, DY Chandrachud, on May 12.

  • Lupin reports a net profit of Rs 235.96 crore in Q4FY23, as against a loss of Rs 517.98 crore in Q4FY22. Its revenue rises 14.6% YoY. The company attributes the profit to a fall in deferred tax expenses. It shows up in a screener for stocks with low debt.

  • Castrol India is falling after reporting a decline in net profit by 11.3% YoY to Rs 202.5 crore in Q4FY23. Input costs rise 12% YoY, while revenue increases 4.7%. Managing Director Sandeep Sangwan says that the company’s Q4 performance has been impacted due to high inflation, input costs and fluctuating forex. The company expects forex fluctuations to continue in 2023.

  • B Thiagarajan, Managing Director of Blue Star, says the company aims to increase the company's market share from the current 13.5% to 15% by FY25. He adds that the company targets a margin of 8-8.5% in the RAC (room air-conditioning) category.

  • Godrej Agrovet is falling as its Q4FY23 net profit declines 74.6% YoY to Rs 31 crore, while its revenue drops marginally by 1.2%. Commenting on profits, Managing Director BS Yadav says, "Consolidated profitability was adversely impacted mainly due to a drop in operating margins of crop protection, animal feed and dairy businesses."

  • JSW Steel's crude steel production in April grows 7% YoY to 17.77 lakh tonnes. Production of rolled flat products increases 16% YoY, while rolled long products fall 9%.

  • JP Morgan maintains its ‘Overweight’ rating on Mahanagr Gas with a target price of Rs 1,240. The brokerage says the company’s Q4 results beat estimates on the back of high margins, and adds that the volume growth remains strong.

  • BNP Paribas Arbitrage buys a 0.6% stake in Manappuram Finance in a bulk deal on Tuesday.

  • Birla Corporation’s Q4FY23 net profit falls 24% YoY to Rs 84.9 crore due to increased expenses, with total expenses rising 13% because of high power, fuel and transport costs. Revenue surges 8.8% YoY in Q4 on rising sales volumes despite sluggish demand in key markets. The stock ranks high on the Trendlyne checklist score.

  • Apollo Tyres' Q4FY23 net profit surges 3.7X YoY to Rs 427.4 crore on lower input cost which fell 11.2%. Revenue rises 12% YoY on strong vehicle wholesales and price hikes taken by tyre companies in Q4. Sales have improved across the Asia Pacific, Middle East & Africa (APMEA) and Europe markets. The company declares a final dividend of Rs 4 per share for FY23.

Riding High:

Largecap and midcap gainers today include Varun Beverages Ltd. (1,606.40, 6.71%), Sona BLW Precision Forgings Ltd. (539.40, 3.39%) and Samvardhana Motherson International Ltd. (78.30, 3.16%).

Downers:

Largecap and midcap losers today include Punjab National Bank (48.50, -3.48%), Aditya Birla Fashion and Retail Ltd. (198.95, -2.74%) and Abbott India Ltd. (21,391.00, -2.45%).

Volume Shockers

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

Top high volume gainers on BSE included EPL Ltd. (191.80, 11.38%), TV18 Broadcast Ltd. (32.75, 8.99%) and Cyient Ltd. (1,257.35, 8.13%).

Top high volume losers on BSE were Latent View Analytics Ltd. (335.20, -10.19%), Aarti Industries Ltd. (507.25, -8.96%) and Rain Industries Ltd. (149.75, -4.50%).

Sanofi India Ltd. (5,700.45, 2.29%) was trading at 13.6 times of weekly average. Godrej Industries Ltd. (466.20, 4.95%) and Jubilant Pharmova Ltd. (342.25, 5.68%) were trading with volumes 9.4 and 8.9 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

18 stocks took off, crossing 52-week highs, while 1 stock hit its 52-week lows.

Stocks touching their year highs included - Aurobindo Pharma Ltd. (618.80, 0.76%), Bharat Petroleum Corporation Ltd. (372.15, 1.39%) and Cyient Ltd. (1,257.35, 8.13%).

Stock making new 52 weeks lows included - Aditya Birla Fashion and Retail Ltd. (198.95, -2.74%).

18 stocks climbed above their 200 day SMA including Jubilant Pharmova Ltd. (342.25, 5.68%) and Vardhman Textiles Ltd. (328.95, 4.00%). 11 stocks slipped below their 200 SMA including Latent View Analytics Ltd. (335.20, -10.19%) and ITI Ltd. (104.45, -2.06%).

 
Trendlyne Marketwatch
Trendlyne Marketwatch
09 May 2023, 03:45PM
Market closes flat, Axis Direct upgrades its rating on Hero MotoCorp to ‘Buy’ from ‘Hold’

Trendlyne Analysis

Nifty 50 closed at 18,265.95 (1.6, 0.0%), BSE Sensex closed at 61,761.33 (-2.9, 0%) while the broader Nifty 500 closed at 15,420.60 (-6.5, 0.0%). Of the 1,947 stocks traded today, 810 were gainers and 1,078 were losers.

Indian indices gave up their gains and closed flat on a volatile day of trade. The benchmark Nifty 50 index closed below the 18.300 mark. Birlasoft rose around 7% after its Q4FY23 revenue increased by 11.3% YoY on the back of improvement in revenue from the banking & financial services, manufacturing, and energy & utilities segments.

Nifty Midcap 100 and Nifty Smallcap 100 closed flat, taking cues from the benchmark index. Nifty Pharma and Nifty IT closed higher than Monday’s levels. According to Trendlyne’s sector dashboard, forest materials was the top-performing sector of the day.

European indices traded in the red, in line with the US indices futures. European stocks traded lower as investors looked ahead to the Bank of England’s policy-setting meeting, scheduled to be released later this week. Major Asian indices closed flat or lower, except for Japan’s Nikkei 225, which closed over 1% higher. Brent crude oil futures trade marginally lower after rising over 5% in the last three trading sessions.

  • TVS Motor Co beats Hero MotoCorp in YoY revenue growth, annual RoE, one-year price change and broker average rating. But it lags in YoY net profit growth, PE ratio, FII holdings and broker average target upside.

  • Indiabulls Real Estate plunges 20% in trade as the National Company Law Tribunal (NCLT) withholds the company's merger with NAM Estates and Embassy One Commercial Property Developments. The NCLT withheld the merger after raising concerns based on the objections of the Income Tax department.

  • Au Small Finance Bank and Bharat Petroleum Corp touch their 52-week highs of Rs 701.2 and Rs 370 respectively. Au Small Fin has risen 22.3% in the past month, while the other increased by 10.4%.

  • Devyani International rises 22.7% over the past month. The company ranks high on Trendlyne’s Checklist, scoring 72.7%. The stock features in a screener of companies where mutual funds have increased shareholdings in the past month.

  • Apollo Tyres touches a 52-week high of Rs 383.15 in trade today. Reports suggest that the company may double its net profit growth in Q4 and net sales are expected to rise up to 10% YoY. The company will declare its Q4FY23 results tomorrow.

  • Chalet Hotels is rising as it posts a net profit of Rs 39.3 crore in Q4FY23, compared to a loss of Rs 11.6 crore in Q4FY22. Its revenue jumps 128.3% YoY on the back of robust demand. The company shows up in a screener for companies near their 52-week highs with significant volumes.

  • Crude oil prices fall marginally in early trade today as markets await the release of US retail inflation figures tomorrow. Brent crude oil has decreased by 0.4% to $76.7 per barrel.

  • Fertilizers, forest materials, and hotels, restaurants & tourism sectors rise over 12.4% over the past three months.

  • Tata Consultancy Services and Infosys' current annual RoE are higher than they have been in the past five years. The current annual RoE of the former is 46.6%, while the latter's is 32%.

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

  • Kotak Mahindra Bank, IDFC First Bank and Aarti Drugs outperform the Nifty 50 index over the month post their Q4FY23 results.

  • Anupam Rasayan is rising as it renews a long-term contract worth $53 million (approximately Rs 436 crore) with a German multinational. Under the renewed contract, Anupam Rasayan will exclusively supply patented life science specialty chemicals to the German multinational for the next three years.

  • Joseph Anantharaju, the Executive Vice-Chairman of Happiest Minds Technologies, expects the company’s revenue to grow 25% in FY24. He adds that the company maintains its margin guidance of 22-24% for FY24.

  • Zenzar Technologies,Alkyle Amines Chemicals and Siemens are rising ahead of their results on Thursday.

  • Bosch, Dr. Reddy's Labs and Procter & Gamble Hygiene Healthcare fall 0.9%, 0.4% and 0.6% respectively over the past week, ahead of their Q4FY23 results tomorrow.

  • Rajendra V Gogri, Managing Director of Aarti Industries, says the company’s EBITDA and volume growth will be around 20% and 25% respectively in FY24. He adds that the revenue will grow by 30-35% moving forward.

  • Axis Direct upgrades its rating on Hero MotoCorp to ‘Buy’ from ‘Hold’ and increases the target price to Rs 2,900 from Rs 2,790. This implies an upside of 11.7% from the current market price. The brokerage believes that the stock is trading at an attractive level. It believes the company’s focus on market share gains through new launches amidst the two-wheeler upcycle will bode well in the coming quarters.

  • Birlasoft is surging despite its net profit declining by 20.6% YoY to Rs 121.7 crore in Q4FY23. However, revenue grows by 11.3% YoY on the back of improvement in revenue from the banking & financial services, manufacturing, and energy & utilities segments. The company shows up in a screener of stocks that have turned a loss into a net profit on a QoQ basis.

  • Mahanagar Gas surges as its Q4FY23 profit rises by 103.9% YoY to Rs 268.8 crore, while its revenue rises by 35.8% YoY. The company also announces a final dividend of Rs 16 per equity share in addition to the interim dividend of Rs 10 per equity share paid in February 2023. Accordingly, the total dividend for FY23 will be Rs 26 per share.

  • Mankind Pharma shares debut on the bourses at a 20.4% premium to the issue price of Rs 1,080. The company's Rs 4,326.4 crore IPO has received bids for 12.16 times the total shares on offer.

  • VIP Industries is falling as it posts a net loss of Rs 4.3 crore in Q4FY23, compared to a net profit of Rs 12.4 crore in Q4FY22. The net loss comes on the back of the loss of property, assets, and inventories worth Rs 47.2 crore due to a major fire at a plant of the company’s arm in Bangladesh. However, its revenue grows by 26.6% YoY on the back of heathy demand.

  • Adani Ports & Special Economic Zone receives over 300% offers worth $412.7 million for its partial buyback offer for 3.4% senior notes worth $130 million.

  • Aarti Industries is rising after its Q4FY23 net profit increases 2.1% YoY to Rs 149 crore despite expenses rising 20%. Its gross revenue also improves by 11% YoY. The board has recommended a dividend of Rs 1.5 per share for FY23.

  • Kalpataru Power Transmission’s Q4FY23 net profit rises 45.8% YoY to Rs 156 crore, aided by an exceptional gain of Rs 109 crore contractually receivable by the company through a former subsidiary. Its revenue also increases 18.1% YoY, driven by healthy demand for engineering, procurement and construction (EPC) projects.

  • Kansai Nerolac Paints is rising after reporting a 3.8X YoY surge in net profit to Rs 93.9 crore in Q4FY23. Its input costs decrease by 5% on falling commodity prices, while revenue increases 14% YoY in Q4. The board has approved the issue of bonus shares in the ratio of 1:2 and a dividend of Rs 2.7 per share for FY23.

  • Pidilite Industries’ Q4FY23 net profit rises 11.3% YoY to Rs 283 crore, aided by moderating input costs and robust demand. Its revenue also improves 7.3% YoY on the back of robust sales volume growth, better product mix and price increases. The stock shows up in a screener for companies with book value per share improving over the past two years.

Riding High:

Largecap and midcap gainers today include Tata Communications Ltd. (1,299.70, 5.82%), Tube Investments of India Ltd. (2,721.25, 4.44%) and UNO Minda Ltd. (551.80, 4.16%).

Downers:

Largecap and midcap losers today include Oracle Financial Services Software Ltd. (3,437.25, -7.29%), Zomato Ltd. (60.95, -6.09%) and Indian Railway Finance Corporation Ltd. (32.90, -5.60%).

Crowd Puller Stocks

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

Top high volume gainers on BSE included Firstsource Solutions Ltd. (127.45, 10.73%), Mahanagar Gas Ltd. (1,073.90, 7.43%) and Birlasoft Ltd. (308.25, 7.12%).

Top high volume losers on BSE were Indiabulls Real Estate Ltd. (55.40, -20.00%), Adani Transmission Ltd. (901.60, -5.00%) and TCNS Clothing Co. Ltd. (401.70, -3.61%).

Kansai Nerolac Paints Ltd. (396.90, -1.43%) was trading at 16.6 times of weekly average. Indraprastha Gas Ltd. (498.60, 2.09%) and Poly Medicure Ltd. (966.00, -1.31%) 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

26 stocks made 52-week highs, while 3 stocks tanked below their 52-week lows.

Stocks touching their year highs included - Apollo Tyres Ltd. (381.60, 1.42%), Bajaj Auto Ltd. (4,528.85, -0.45%) and Bharat Petroleum Corporation Ltd. (366.30, -0.38%).

Stocks making new 52 weeks lows included - TeamLease Services Ltd. (2,038.00, -0.69%) and TCNS Clothing Co. Ltd. (401.70, -3.61%).

21 stocks climbed above their 200 day SMA including Birlasoft Ltd. (308.25, 7.12%) and Greaves Cotton Ltd. (148.25, 5.22%). 6 stocks slipped below their 200 SMA including Alembic Pharmaceuticals Ltd. (572.05, -3.53%) and Rashtriya Chemicals & Fertilizers Ltd. (105.05, -2.91%).

 
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The Baseline
09 May 2023, 10:22AM
Five analyst picks that outperformed Nifty 50 over the month
By Abhiraj Panchal

This week in analyst picks we look at companies that relatively outperformed the Nifty 50 over the past month:

  1. Supreme Industries: Geojit BNP Paribas upgrades its rating on this plastic products company to ‘Buy’ from ‘Hold’ and raises the target price to Rs 3,223 from Rs 2,703. This implies an upside of 15.7%. The firm has outperformed the Nifty 50 index by 3.6% over the past month. In Q4FY23, its net profit increased by 11% YoY to Rs 359.4 crore and revenue grew 1.6% YoY. 

Analyst Anil R is optimistic about this stock, as its Q4 performance has exceeded expectations on the back of a 15% YoY increase in volumes. He sees this volume growth as driven by strong demand in the housing and agricultural sectors. The expansion of the firm’s EBITDA margin by 320 bps YoY to 18.5%, led by stable raw material prices, he notes, is a key positive. 

Given the softening of raw material costs, the analyst anticipates healthy margin and profit growth in the coming quarters. “Stable demand from the housing & agriculture sectors will continue to drive volume & revenue going ahead,” Anil adds. He expects the company’s revenue to grow at a CAGR of 11.4% over FY23-25. 

  1. IDFC First Bank: ICICI Direct retains its ‘Buy’ call on this bank as valuations look reasonable, and gives it a target price of Rs 75. This indicates an upside of 15.5%. The bank has outperformed the Nifty 50 index by 13.7% in the past month. In Q4FY23, its profit increased by 131.7% YoY to Rs 816.1 crore, while its revenue grew 45.3% YoY. 

IDFC First’s share price rose by 60% in the past year. Customer deposits grew by 46.8% YoY to Rs 1.36 lakh crore, which according to analysts Kajal Gandhi, Vishal Narnolia and Pravin Mule was led by a 41% YoY rise in CASA. The analysts say, “Credit growth continued to remain strong and ahead of industry growth, coupled with a gradual improvement in cost to income.” They also believe that the bank has steady asset quality – Return on Assets reached 1.1% in FY23, and the analysts expect it to improve to 1.3% in FY24.

  1. Godrej Properties: Motilal Oswal reiterates its ‘Buy’ call on this realty company with a target price of Rs 1,575, indicating an upside of 15.1%. The company has outperformed the Nifty 50 index by 22.4% in the past month. In Q4FY23, Godrej Properties posted a net profit growth of 58.2% YoY to Rs 412.1 crore, while its revenue increased by 20.8% YoY. According to analysts Pritesh Sheth and Sourabh Gilda, the revenue was driven by strong completion and they expect the company to sustain its improved profitability level

The realty company reported pre-sales of Rs 4,000 crore in Q4 (up 25% YoY and 12% above the brokerage's estimates). For FY23, the bookings surpassed its full-year guidance by Rs 2,200 crore, say the analysts. They add, “The company continues to provide strong visibility on pre-sales growth with sustained aggression in business development activity as it is targeting to add Rs 15,000 crore worth of new projects in FY24.” 

  1. Mold-Tek Packaging: IDBI Capital upgrades its rating on this containers and packaging company to a ‘Buy’ with a target price of Rs 1,252. This indicates an upside of 26.8%. It has outperformed the Nifty 50 index by 1.3% in the past month. In Q4FY23, the company’s profit increased 23% YoY to Rs 23 crore and its revenue grew marginally by 3.7% YoY. The results were in line with the brokerage's estimates on key parameters, says Archana Gude. According to her, the Q4 sales volume off-take was impressive due to weak demand in Q3 and low-base sales. The management has also guided sales volume to be in the range of 15%-20% in the near term. 

Gude says, “Mold-Tek Packaging’s strategy of timely capacity expansion and entry into high-value products have been key drivers of sustainable earnings growth of the company.” She believes that expansion into the northern markets will pave the way for further improved earnings. She expects this expansion, along with healthy earnings growth, will lead to decent returns for the stock.

  1. Kotak Mahindra Bank: KRChoksey keeps its ‘Buy’ rating on this bank with a target price of Rs 2,330,  indicating an upside of 7.5%. The company has outperformed the Nifty 50 index by 6.6% over the past month. In Q4FY23, the firm’s net profit rose by 26.3% YoY to Rs 3,495.6 crore and revenue grew by 39% YoY. 

Analyst Abhishek Agarwal believes that the bank’s healthy performance in Q4 has been driven by robust growth in net interest income, lower expenses and improved asset quality. This led to lower provisions and further strengthened the balance sheet. He adds that the bank continues to be a market leader in terms of the CASA ratio. 

Agarwal says, “Overall, on the credit side, the bank is optimistic about the demand trajectory in the upcoming quarters, with improved contributions from high-margin segments.” For the coming quarters, Kotak Mahindra will continue to invest in digital capabilities and expand its branches, according to the analyst. He expects the company’s net profit to grow at a CAGR of 12.7% over FY23-25. 

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

(You can find all analyst picks here)

 
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The Baseline
08 May 2023, 04:51PM
Chart of the week: Auto companies see a jump in net profit and operating margins in Q4, cement struggles
By Abdullah Shah

As we head into the thick of the Q4 results season, let’s take a look at Trendlyne’s industry results dashboard to see which industries are up, and which are down. This edition of chart of the week looks at industries where major companies have released Q4FY23 results. We check the performance in terms of YoY growth in net profit and operating profit margin. 

Industries with clear emerging trends include finance (including NBFCs), automobile & auto components, FMCG, IT consulting & software, banks and cement & cement products.

The automobile & auto components industry registered an average net profit growth of 49.1% YoY during Q4FY23. This was helped by a 72.9% and 42.4% YoY rise in net profit for Mahindra CIE Automotive and Maruti Suzuki respectively. MRF more than doubled its net profit during the quarter. 

The industry’s operating profit margin improved by 150 bps in the same period on the back of reducing material costs. Major original equipment manufacturers (OEMs) intend to aggressively launch new products in India and make sizable investments. This is expected to intensify competition among the manufacturers, while the ever-improving affordable vehicles segment will boost sales.

The NBFC industry posted an average net profit growth of 61.8% YoY in Q4FY23, with a 9.3 percentage points improvement in operating profit margin. It was aided by a 30.5% YoY, 24.5% YoY and 67.2% YoY rise in net profits of Bajaj Finance, Cholamandalam Investment & Finance and Poonawalla Fincorp respectively. The industry’s average operating profit margin increased on the back of improvement in margins of Bajaj Finance, Mahindra & Mahindra Financial Services and Poonawalla Fincorp.

The FMCG industry witnessed an average net profit growth of 15.1% YoY in Q4FY23 while its operating profit margin declined marginally by 10 bps during the quarter. This net profit rise was aided by a rise in net profit of 12.9% YoY, 23.87% YoY and 47.1% YoY from Hindustan Unilever, Nestle India and Britannia Industries respectively. The rise in average net profit was on the back of reduction in commodity prices of Brent crude, soda ash, caustic soda and crude palm oil tea.

The cement & cement products industry, on the other hand, saw  a 25.7% YoY decline in average net profit, while its average operating profit margin decreased by 210 bps YoY in Q4FY23. ACC and Ultratech Cement witnessed their net profits decline by 40.5% YoY and 36.4% YoY respectively during the quarter, causing the industry’s average operating profit to drop. 

Meanwhile, ACC, Ambuja Cements and Dalmia Bharat saw a reduction in operating profit margin due to the surge in fuel prices YoY, leading to a fall in the industry average profit margin.

 
Trendlyne Marketwatch
Trendlyne Marketwatch
08 May 2023, 03:45PM
Market closes higher, UPL's Q4FY23 net profit falls 37.8% YoY to Rs 1,080 crore

Trendlyne Analysis

Nifty 50 closed at 18,264.40 (195.4, 1.1%), BSE Sensex closed at 61,764.25 (710.0, 1.2%) while the broader Nifty 500 closed at 15,427.10 (148.5, 1.0%).  Of the 1,978 stocks traded today, 1,123 were gainers and 787 were losers.

Indian indices maintained their gains from morning session and Nifty 50 closed over 1% higher, with the volatility index, India VIX, rising over 3%. India’s coal imports surge by 30% in FY23 to 162 MT.

One97 Communications (Paytm) Q4FY23 net loss declines by 77.9% YoY to Rs 168.4 crore against analyst estimates of 306 crore loss. Its revenue increases by 51.5% YoY as its value of loans distributed rises to Rs 12,554 crore.

Nifty Midcap 100 and Nifty Smallcap 100 closed in the green, following the benchmark index. However, Nifty PSU Bank index and Nifty Media closed lower than their Friday levels. All other major sectoral indices closed higher. According to Trendlyne’s sector dashboard, realty was the top-performing sector of the day.

European indices traded in the green, taking cues from the US indices futures, which also traded higher. Major Asian indices closed higher, except for Japan’s Nikkei 225 closing in the red. The US farm payroll data released on Friday indicated unemployment rate in April 2023 at 3.4% against estimates of 3.6%. The Fed needs to take a fresh look against their earlier outlook to pause interest rate hikes.

  • Relative strength index (RSI) indicates that stocks like Rail Vikas Nigam, Cholamandalam Investment & Finance, MRF and Devyani International are in the overbought zone.

  • Happiest Minds is falling despite its Q4FY23 net profit rising by 10.7% YoY to Rs 57.7 crore and revenue increasing by 25.8% YoY. However, its EBIT margin drops 70 bps YoY to 22.4% due to a sharp rise in employee costs.

  • Exide Industries is rising despite net profit declining by 95.4% YoY to Rs 181.1 crore in Q4FY23 on the back of rising raw material costs. Its revenue declined by 4.8% YoY to Rs 3,676,8 crore. The company shows up in a screener of stocks with declining net profit and profit margin (YoY). The company has also declared a final dividend of Rs 2 per share of face value of Rs 1 each.

  • Alembic Pharmaceuticals rises over 7% in trade today. The company features in a screener of stocks where brokers have upgraded their recommendations or target prices in the past month. According to Trendlyne’s Forecaster, the analyst price target on the stock is Rs 601 per share.

  • Union Bank of India, Bank of India, NCC and Petronet LNG are trading below their second support or S2 level.

  • CG Power and Industrial Solutions is rising as its Q4FY23 net profit jumps 282.4% YoY to Rs 426.1 crore and revenue increases 28.2% YoY, driven by robust growth in its industrial and power segments. The stock shows up in a screener for companies with book value per share improving over the past two years.

  • Tata Motors and Oracle Financial Services touch their 52-week highs of Rs 500 and Rs 3,722.5, respectively. Tata Motors has risen 16.8% in the past month, while the other increased by 13.2%.

  • UPL's Q4FY23 net profit falls 37.8% YoY to Rs 1,080 crore, while its revenue rises by 4.5% YoY. The decrease in profit is attributed to an increase in the cost of materials and components consumed. The company shows up in screener for stocks with improving return on equity for the past two years.

  • Tatva Chintan Pharma Chem is plunging as its net profit declines 3.2% YoY to Rs 16.9 crore in Q4FY23. However, its revenue grows by 26.4% YoY on the back of growth in the phase transfer catalysis (PTC), PASC and structured directing agents (SDA) segments. The company shows up in a screener of stocks with declining quarterly net profit and profit margin (YoY).

  • Automobile & auto component stocks like Tata Motors, Sona BLW Precision Forging, Mahindra & Mahindra, Bharat Forge and Bajaj Auto are rising in trade. The broader sectoral index Nifty Auto is also trading in the green.

  • Goldman Sachs expects brent crude oil price to increase to $95 per barrel by December. The brokerage says that global oil demand is less likely to be impacted by the US banking crisis or China’s weak industrial data.

  • Canara Bank is falling despite its Q4FY23 net profit surging by 90.5% YoY to Rs 3,174.7 crore and its interest income rising 33.9% YoY, driven by growth in the retail banking segment. The bank’s asset quality also improves as its net NPA drops 92 bps YoY to 1.73%. The company shows up in a screener for stocks in the PE Buy zone with high durability scores and rising momentum scores.

  • Equitas Small Finance Bank reaches its all-time high of Rs 78.4 as its net profit grows 59% YoY to Rs 190 crore in Q4FY23. Its revenue increases by 29% YoY on the back of increased advances and loan disbursements. The bank's asset quality has improved as its gross and net NPAs declined by 147 bps YoY and 123 bps YoY.

  • Gautam Saraogi, the Executive Director and CEO of Go Fashion (India), says the company plans to add around 130 stores in FY24. He adds that it targets a market share of 14-15% in the next few years.

  • Pennar Industries is rising as it bags orders worth Rs 682 crore across various business verticals like steel, railways, tubes, and construction. The company expects to execute these orders within the next two quarters.

  • ICICI Direct downgrades its rating on United Breweries to ‘Hold’ from ‘Buy’ and lowers its target price to Rs 1,500 from Rs 1,900. This implies an upside of 8.1% from the current market price. The brokerage expects high volatility in the firm’s operations in FY24 & FY25. It also anticipates margins to be impacted due to high input costs, supply-side constraints and subdued sales growth in the near term.

  • JSW Energy rises as its arm, JSW Renew Energy Three, inks a power purchase agreement with Solar Energy Corp of India for a 300-megawatt ISTS-connected wind power project.

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

  • Shyam Srinivasan, CEO of Federal Bank, says the company targets a loan growth of 18-20% for FY24. He also expects a contraction in the bank’s margins.

  • One97 Communications (Paytm) is rising as its net loss declines by 77.9% YoY to Rs 168.4 crore in Q4FY23. Its revenue increases by 51.5% YoY as its value of loans distributed rises to Rs 12,554 crore. The company shows up in a screener of stocks with improving net profits, operating profit margin, and revenues in the past quarter.

  • Bank of India is falling despite a 105.5% YoY rise in net profit to Rs 1413.9 crore, while revenue rises 44.7% YoY. Treasury and wholesale banking operations segments have contributed most to the rise in profit. The bank features in a screener for stocks with increasing revenue for four consecutive quarters.

  • Coal India is falling as its Q4FY23 net profit decreases 17.3% YoY to Rs 5,533.2 crore, despite a 17% YoY increase in revenue. The decline in profit is attributed to the rise in expenses like employee benefits, contractual expenses, and others. The company features in screener for stocks with zero promoter pledges.

  • Nomura upgrades its rating on Bharat Forge to 'Buy’ with a target price of Rs 929. The brokerage says the company’s defence revenue is expected to grow sharply during FY24-25.

  • Private bank stocks like IndusInd Bank, Kotak Mahindra Bank, RBL Bank and Bandhan Bank are rising in trade. The broader sectoral indices, Nifty Private Bank and BSE Private Bank, are also trading in the green.

  • Aditya Birla Fashion and Retail inks an agreement to acquire up to 51% stake in TCNS Clothing worth Rs 1,650 crore from public shareholders and founder promoters.

  • Marico surges as its Q4FY23 net profit rises 20.3% YoY to Rs 302 crore, driven by an increase in other income, which includes a one-time gain on the sale of land. Its revenue also grows by 5.6% YoY. It shows up in a screener for stocks with improving book value over the past two years.

  • Britannia Industries’ Q4FY23 net profit rises 47.1% YoY to Rs 558.7 crore as its revenue increases by 13.3% YoY. Varun Berry, Vice-Chairman & MD of the company, attributes the growth to significant distribution gains and expansion of its rural network. The stock shows up in a screener for companies with high TTM EPS growth.

Riding High:

Largecap and midcap gainers today include Marico Ltd. (530.70, 7.52%), Tata Motors Limited (DVR) (258.50, 4.97%) and IndusInd Bank Ltd. (1,126.35, 4.94%).

Downers:

Largecap and midcap losers today include Bank of India (81.15, -5.86%), Adani Transmission Ltd. (949.05, -5.00%) and Adani Total Gas Ltd. (872.90, -5.00%).

Movers and Shakers

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

Top high volume gainers on BSE included Marico Ltd. (530.70, 7.52%), Alembic Pharmaceuticals Ltd. (593.00, 6.90%) and Indigo Paints Ltd. (1,275.20, 5.43%).

Top high volume losers on BSE were TCNS Clothing Co. Ltd. (416.75, -19.99%), Gujarat Ambuja Exports Ltd. (259.75, -9.57%) and Indian Bank (315.30, -5.00%).

Aditya Birla Fashion and Retail Ltd. (205.95, -3.85%) was trading at 14.0 times of weekly average. Macrotech Developers Ltd. (925.75, 3.31%) and FDC Ltd. (301.00, 0.92%) were trading with volumes 10.9 and 7.9 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

32 stocks made 52-week highs, while 4 stocks were underachievers and hit their 52-week lows.

Stocks touching their year highs included - Akzo Nobel India Ltd. (2,454.80, 1.92%), Apollo Tyres Ltd. (376.25, 1.99%) and Bajaj Auto Ltd. (4,549.25, 1.93%).

Stocks making new 52 weeks lows included - Blue Dart Express Ltd. (5,702.30, -1.58%) and Aditya Birla Fashion and Retail Ltd. (205.95, -3.85%).

16 stocks climbed above their 200 day SMA including Marico Ltd. (530.70, 7.52%) and Alembic Pharmaceuticals Ltd. (593.00, 6.90%). 11 stocks slipped below their 200 SMA including Gujarat Ambuja Exports Ltd. (259.75, -9.57%) and Symphony Ltd. (892.15, -5.20%).

 
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The Baseline
05 May 2023
Five Interesting Stocks Today
  1. Varun Beverages: This beverages company’s Q1CY23 net profit surged by 68.8% YoY to Rs 429.1 crore, while its revenue from operations rose 37.7% YoY. The growth has been driven by healthy demand across India, which enabled its sales volumes to increase 24% YoY, along with better realisations driven by price hikes and improved product mix. Its gross margin also expanded by 89 bps YoY to 52.4%. The management says that the rural demand has recovered and is growing faster than urban demand.  

Along with this healthy performance, this PepsiCo franchisee has seen one brokerage recommendation upgrade and 10 target price upgrades over the past three months. According to Trendlyne’s Forecaster, the consensus recommendation on the stock from 15 analysts is ‘Buy’.

The company’s board has announced a stock split in the ratio of 1:2 to enhance the liquidity of its equity shares and make the stock more attractive to small investors.  

The company plans to expand the distribution of its high-margin Sting energy drink, as its sales volumes have been rising in double digits. The management believes there is still significant room for expansion in the market for the product. It believes the next key growth drivers will be juices, sports drinks and value-added dairy products, for which two production facilities are being set up and are anticipated to be commissioned in CY24.

  1. Cholamandalam Investment & Finance: This NBFC reached its all-time high of Rs 970 per share on Thursday as its net profit rose 24.5% YoY to Rs 855.2 crore in Q4FY23. Its revenue has also grown 43.6% YoY to Rs 3,741.1 crore on the back of improvements in vehicle finance, property and home loans. This has helped the company turn up in a screener of stocks with increasing revenue for the past eight quarters. 

The company’s asset quality also improved, with gross and net NPAs falling by 74 bps YoY and 65 bps YoY, respectively, thanks to improved efficiency in loan collection. The stock beat Trendlyne’s Forecaster estimates for net profit by 17.3%. 

Its vehicle finance segment, which contributes 64.2% of the revenue, grew 26% YoY over the quarter. This was supported by a well-diversified portfolio across India, which finances commercial, passenger, two-wheelers, tractors and construction equipment in both new and used vehicles. The lender is focusing on retail customers, especially in smaller towns and rural areas. 

According to Motilal Oswal, CIFC is well-positioned to capitalise on its diverse product portfolio and widespread distribution network to realise its growth potential. The broker has maintained a ‘Buy’ rating on the stock, with an upgraded target price of Rs 1,130, indicating a potential upside of 19%.  

  1. MRF: This auto tyre company is trading near its 52-week high of Rs 96,000 after reporting upbeat Q4 results. It has risen over 6% in the past two sessions. MRF recorded a standalone net profit of Rs 410.7 crore, up 161.9% YoY, beating Trendlyne’s Forecaster estimates by 57.4%.  As a result, the company features in a screener of stocks with increasing profits every quarter for the past three quarters. Its revenue also grew by 10.1% YoY to Rs 5,725.4 crore. 

The company’s strong performance during the quarter was due to softening rubber prices and higher vehicle sales, which led to increased demand for tyres. Automobile manufacturers recorded higher sales in Q4,  due to increased demand for passenger and commercial vehicles. The demand comes as consumers are expecting price increases following tighter fuel emission norms, which took effect in April.

However, Motilal Oswal maintains its ‘Sell’ rating on MRF with a target price of Rs 75,400. This is due to the dilution of pricing power in the PCR (passenger car radial) and TBR (truck, bus and radial) tyre segments. According to Trendlyne’s Forecaster, the analyst price target on MRF is Rs 74,468, implying a 22% downside. 

  1. Manappuram Finance: This NBFC stock fell 12% in trade on Wednesday after the Enforcement Directorate (ED) conducted raids at multiple locations, including its headquarters in Thrissur, Kerala, on charges of money laundering. The ED has reportedly frozen assets worth Rs 143 crore belonging to the MD & CEO, VP Nandakumar, after it discovered that the proceeds of the alleged money laundering were diverted into immovable assets under his and his family’s names.

    Reports also suggest that the company collected deposits worth Rs 150 crore in contradiction to the rules of the Reserve Bank of India, which state that NBFCs are not allowed to collect deposits for a period less than 12 months and more than 60 months. However, the company issued a clarification on Thursday saying that the deposit allegations are linked to Manappuram Agro Farms (MAGRO), a former proprietor. The company claims that it had repaid the money except for deposits amounting to Rs 9.25 lakh. 

Lately, the NBFC has been moving its AUM portfolio towards non-gold loans. Its gold loan portfolio dropped from 67% in Q1FY23 to 58% in Q3FY23. This is because banks, with their cheaper cost of funds, are aggressively expanding in the gold loan space, and Manappuram Finance is unable to compete with their lower rates. Its non-gold portfolio in AUM terms is 42% in Q3. Manappuram diversifying away from high-yielding gold loans may lead to margin contraction. 

The company’s track record in maintaining asset quality in the non-gold portfolio isn’t up to the mark. Its investor presentation shows that GNPAs in the non-gold portfolio for its subsidiary Asirvad Microfinance and housing finance stands at 6.7% and 5.4%, respectively, in Q3. The company's overall GNPA stands at 3%. 

Trendlyne’s Forecaster expects Manappuram’s revenue to fall by 15% in Q4FY23. The stock has fallen nearly 10% in the past month. However, the consensus recommendation on the stock from 12 analysts remains ‘Buy’. 

  1. Bharat Heavy Electricals (BHEL): This heavy electrical equipment manufacturer has been rising for the past month and is trading near its 52-week high. The rise can be attributed to recent order wins and its efforts to diversify into other segments. As a result, the company shows up in a screener for stocks that have gained more than 20% in the past month. 

In April 2023, BHEL won a Rs 3,700 crore order for the supply of strategic equipment for the defence sector, and a railway tender for the supply and maintenance of 80 Vande Bharat train sets worth Rs 23,000 crore. As of Q3FY23, the company’s total orderbook amounted to Rs 1,03,700 crore, with 83% concentrated in the power segment and 13% in the industrial segment. The company also signed a pact with the Nuclear Power Corp of India to jointly pursue business opportunities in the area of nuclear power.

According to ICICI Securities, BHEL is making conscious efforts to diversify its industrial segment offerings in railway, defence and nuclear segments. Even though Q3 executions were muted, the brokerage expects the industrial segment’s execution to be at a higher pace. 

Despite a marginal increase in revenue during Q3FY23, BHEL’s profit grew by 56.5% YoY to Rs 42.3 crore. The electrical equipment manufacturer also features in a screener of stocks with rising profit and revenue for the past two quarters. According to Trendlyne’s Forecaster, the company is expected to post a net profit of Rs 531.9 crore in Q4FY23. 

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

 
Trendlyne Marketwatch
Trendlyne Marketwatch
05 May 2023
Market closes lower, Federal Bank's Q4 net profit surges 67% YoY to Rs 902.6 crore

Trendlyne Analysis

Nifty 50 closed at 18,069.00 (-186.8, -1.0%), BSE Sensex closed at 61,054.29 (-695.0, -1.1%) while the broader Nifty 500 closed at 15,278.60 (-126.9, -0.8%). Of the 1,943 stocks traded today, 657 showed gains, and 1,223 showed losses.

Indian indices extended their losses and closed over 1% lower, with the volatility index, India VIX, rising by over 5%. However, the benchmark Nifty 50 index rose 0.8% in the past week. United Breweries fell over 2% after its Q4 net profit fell 94% YoY to Rs 981 crore.

Nifty Midcap 100 and Nifty Smallcap 100 closed in the red, following the benchmark index. However, Nifty Auto and Nifty FMCG closed higher than their Thursday levels. According to Trendlyne’s sector dashboard, telecommunications equipment was the top-performing sector of the day and also the week.

European indices traded in the green, taking cues from the US indices futures, which also traded higher. Major Asian indices closed higher, except for India’s BSE Sensex and China’s Shanghai SE Composite Index, which closed in the red. Brent crude oil futures traded over 1.5% higher but crude oil prices are still down 8% in the past week.

  • Federal Bank sees a short buildup in its May 25 future series as its open interest rises 61.2% with a put-call ratio of 0.44.

  • Mahindra & Mahindra Financial Services touches its 52-week high of Rs 289.2 today. It has risen over 20% in the past month. The company features in a screener of stocks where brokers have upgraded their recommendations or target prices in the past three months.

  • Symphony is falling as its Q4FY23 net profit plunges by 74.6% YoY to Rs 16 crore and its revenue drops by 19.8% YoY due to a 22% YoY decline in the air-cooling segment. The stock shows up in a screener for companies with decreasing cash flows from operations over the past two years.

  • Cholamandalam Financial Holdings and Sapphire Foods India rise 20.7% and 10.1% over the past week, ahead of their results on May 12.

  • KFIN Technologies is plunging as its revenue declines by 2.7% QoQ to Rs 183.1 crore in Q4FY23. However, its EBIDTA margin improves by 290 bps QoQ, aiding the net profit to grow 6.8% QoQ. The company shows up in a screener of stocks with increasing net profit and profit margin (YoY).

  • Telecommunications equipment, hotels, restaurants & tourism, forest materials and commercial services & supplies sectors rise more than 4% in the past week.

  • Federal Bank is plunging despite its net profit growing by 67% YoY to Rs 902.6 crore in Q4FY23. Its asset quality improves as gross and net NPAs decline by 44 bps YoY and 27 bps YoY. However, the bank witnesses a 55% YoY increase in provisions.

  • NMDC, HDFC Bank, Dabur India, IndusInd Bank and United Breweries are trading below their third support or S3 level.

  • Bharat Forge is falling as its Q4FY23 net profit declines 42.5% YoY due to higher raw material costs, finance costs and other expenses. Its revenue marginally rises by 1.6% YoY. The stock shows up in a screener for companies with declining cash flows from operations over the past two years.

  • According to reports, one of Spicejet’s lessors, Aircastle, files a case at the National Company Law Tribunal (NCLT) to initiate an insolvency process against the airline for non-payment of dues. The first hearing of this case is set to take place on Monday at the Delhi bench of NCLT.

  • Securities and Exchange Board of India (SEBI) plans to issue directives to brokers and mutual funds to limit the use of financial influencers in their advertising and marketing campaigns, according to reports. SEBI is worried about the rise in influencers sharing financial advice on social media, which could mislead retail investors.

  • Mohit Malhotra, CEO of Dabur India, says the company aims to achieve an EBITDA margin of around 19-19.5% in FY24. He adds that Dabur's revenue growth could be in the low double-digit.

  • Manappuram Finance's Managing Director VP Nandakumar, in a statement today, clarifies that the ED probe is not related to the company but a now non-existent private entity called Manappuram Agro Farms. The enforcement actions are against the promoter and not the company, he adds.

  • KRChoksey maintains its ‘Buy’ rating on Kotak Mahindra Bank with a target price of Rs 2,330. This implies an upside of 19%. The brokerage remains positive about the bank’s prospects due to its improving asset quality, strong brand value, healthy credit growth and rising market share. It expects the company’s net profit to grow at a CAGR of 12.7% over FY23-25.

  • United Breweries is falling as its net profit declines 94% YoY to Rs 981 crore in Q4FY23. The rise in employee benefits expense, cost of raw materials and other expenses has caused the EBITDA margin to plunge by 5.9 percentage points YoY to 1.6%. The company features in a screener of stocks with declining profits for the past three quarters.

  • Media stocks like Zee Entertainment Enterprises, Sun TV Network, PVR and Network 18 Media & Investment are falling in trade. The broader sectoral index Nifty Media is also trading in the red.

  • R Dilip Kumar, CFO of Sundram Fasteners, says the company targets to improve its margin to 17% in FY24. He adds that it expects to generate 15% revenue from the EV segment.

  • Jammu & Kashmir Bank's Q4FY23 profit rises 297.7% YoY to Rs 472.6 crore, aided by good recoveries. Its revenue also increases by 21.2% YoY. The bank shows up on a screener of stocks with low debt.

  • Blue Star is rising as its Q4FY23 net profit nearly triples YoY to Rs 225.3 crore, aided by realising a gain of Rs 170.8 crore from the sale of land. Revenue also increases by 16.7% YoY, driven by growth across all its business segments. The company’s board has approved the issue of bonus equity shares in the ratio of 1:1.

  • Apollo Tyres, Castrol India and Westlife Foodworld's weekly average delivery volumes rise ahead of their Q4FY23 results on Tuesday

  • Tech Mahindra acquires an additional 29% stake in Tech Mahindra Arabia, its joint venture with Midad, for a cash consideration of $11.1 million ( approximately Rs 90.7 crore). TechM now holds an 80% stake in TechM Arabia, while Midad holds 20%.

  • Anant Goenka, Vice Chairman of Ceat, says the company targets to generate 25-30% of revenue from the international market in the near term. He adds that Ceat plans to improve growth in the two-wheeler and PV segments.

  • Manappuram Finance falls as the Directorate of Enforcement freezes assets worth Rs 143 crore of its Managing Director VP Nandakumar under the Prevention of Money Laundering Act, 2002. The assets include 19 crore equity shares in the company.

  • Adani Enterprises' Q4FY23 profit rises 137.4% YoY to Rs 722.5 crore. Its revenue also grows 26.2% YoY on the back of positive performance by the integrated resources management and airports business segments. The company shows up in a screener for stocks with consistently high returns over five years.

  • Hero MotoCorp is rising as its net profit improves by 37% YoY to Rs 859 crore in Q4FY23. Its revenue also grows by 12% YoY on the back of improvement in volume sold during the quarter. The company shows up in a screener of stocks with increasing profit for the past three years.

  • Macquarie maintains its ‘Outperform’ rating on TVS Motor with a target price of Rs 1,354. The brokerage says the company is its top pick in the two-wheeler space. It also raises PAT estimates for FY24E to 5%.

  • TVS Motor Co is rising as its consolidated Q4FY23 net profit increases 21.1% YoY to Rs 336.1 crore, and its revenue grows by 22% YoY. The healthy performance is driven by a premium product mix, falling commodity prices, and easing semiconductor supply constraints. The stock shows up in a screener for companies with consistently high returns over the past five years.

  • Tata Power’s Q4FY23 net profit rises 54.6% YoY to Rs 777.7 crore, aided by higher other income. Its revenue improves 4.1% YoY, with the transmission & distribution segment growing by 16.4% YoY. The stock shows up in a screener for companies with high TTM EPS growth.

  • Indian markets slumped today. Nifty 50 was trading at 18,153.35 (-102.5, -0.6%) , BSE Sensex was trading at 61,163.10 (-586.2, -1.0%) while the broader Nifty 500 was trading at 15,359.60 (-45.9, -0.3%)

  • Market breadth is highly positive. Of the 1,699 stocks traded today, 1,133 were in the positive territory and 475 were negative.

Riding High:

Largecap and midcap gainers today include Cholamandalam Investment & Finance Company Ltd. (991.85, 4.38%), TVS Motor Company Ltd. (1,214.95, 3.93%) and MRF Ltd. (9,8614.05, 3.68%).

Downers:

Largecap and midcap losers today include Federal Bank Ltd. (127.75, -8.36%), HDFC Bank Ltd. (1,625.65, -5.91%) and Housing Development Finance Corporation Ltd. (2,702.30, -5.58%).

Volume Shockers

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

Top high volume gainers on BSE included Restaurant Brands Asia Ltd. (107.95, 9.32%), ITI Ltd. (105.60, 8.64%) and Hitachi Energy India Ltd. (3,729.80, 7.60%).

Top high volume losers on BSE were Manappuram Finance Ltd. (105.55, -11.49%), Federal Bank Ltd. (127.75, -8.36%) and IndusInd Bank Ltd. (1,073.30, -5.40%).

HLE Glasscoat Ltd. (623.85, 4.49%) was trading at 18.1 times of weekly average. Happiest Minds Technologies Ltd. (871.45, 5.13%) and Symphony Ltd. (941.10, -5.27%) were trading with volumes 12.6 and 10.4 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

21 stocks overperformed with 52-week highs, while 3 stocks hit their 52-week lows.

Stocks touching their year highs included - Apollo Tyres Ltd. (368.90, 2.54%), Bharat Petroleum Corporation Ltd. (365.45, -0.79%) and Carborundum Universal Ltd. (1,100.25, -2.06%).

Stocks making new 52 weeks lows included - V-Mart Retail Ltd. (2,067.45, -1.26%) and TeamLease Services Ltd. (2,028.50, -2.79%).

14 stocks climbed above their 200 day SMA including ITI Ltd. (105.60, 8.64%) and HLE Glasscoat Ltd. (623.85, 4.49%). 15 stocks slipped below their 200 SMA including Manappuram Finance Ltd. (105.55, -11.49%) and IndusInd Bank Ltd. (1,073.30, -5.40%).

 
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The Baseline
04 May 2023
India emerges a winner in the global oil war | Stocks beating analyst estimates in Q4
By Shreesh Biradar

Over the past few decades, major geopolitical events led to sharp fluctuations in oil prices – the US invasion of Iraq (which triggered a 49% jump in oil prices from March 2003 to March 2004), the Afghanistan crisis (58% up from September 2001 to September 2002), and sanctions on Iran (43% up from September 2010 to September 2011).

Each of these events disrupted the crude oil supply chain. The usual pattern is this: Developed nations impose sanctions on an oil producer, and developing economies struggle with high oil prices, and rising fiscal deficits.

The ongoing Russia-Ukraine conflict is the latest example, where many analysts expected $100 oil after the US and Europe stopped energy purchases from Russia.

But unlike the previous blanket bans, this time the G7 countries took a softer stand by capping the Russian oil price at USD 60 per barrel. The sanctions are meant to ensure a revenue cap for Russia, without hampering the oil supply chain.

Many countries are not complying with the price cap:

The impact this time is different – by continuing to buy Russian oil despite EU and US boycotts, India and China have become major refined oil exporters.

In this week’s Analyticks:

  • Oil politics: India is on the winning side of oil politics, for a change
  • Screener: Stocks that beat analyst estimates for revenue and net profit in Q4FY23

Let’s get into it.

India's deep thirst for cheap Russian oil

The price cap on Russian oil has caused its Ural crude to trade at 40% below the international benchmark, Brent crude. In the first quarter of 2023, Russian Ural oil averaged USD 51.05 per barrel, while Brent crude oil was priced around USD 81.91.

India's economy is highly susceptible to oil price fluctuations. A report by Edelweiss suggests that a 10 dollar increase in oil prices causes a current account deficit of 0.5% of India's GDP. If India were to replace its entire import crude basket with Russian Ural, its current account deficit could contract by 1.6%-1.7% of GDP.

The landing cost (including freight and insurance) of Russian Ural for India was roughly USD 70 in March. India and China are snapping up cheap Russian crude in large quantities - Russia currently accounts for nearly 40% of India’s crude imports, while China has increased its Russian oil imports by 22%. 

The Middle East’s oil producers have been at the receiving end of this, and saw their share of Indian oil imports drop sharply.

Sooner or later, Middle Eastern refiners may need to revise their official selling price to compete with Russia.

The increased demand for cheaper Russian Ural has pushed its prices past the $60/barrel cap imposed by the G7, and the price differential between Russian Ural and Brent had narrowed to 20% by the end of April 2023. Finance Minister Nirmala Sitharaman has saidthat India is going to keep buying Russian oil past the price cap, as long as it remains cheaper than Brent crude.

Can India increase Russian oil imports?

India increased its Russian imports from 67,500 barrels/day in January 2022 to 2.1 million barrels/day by the end of April 2023. Russia is now India’s single major source of oil supply. Whether India can increase its Russian oil imports further is a complex question. 


India has struggled to find an alternative currency to the US dollar for purchasing Russian crude oil. Russia's removal from the international SWIFT payment system has made dollar transactions difficult, and exposes India to potential sanctions. Trading in INR is impractical, as Russia is a net exporter to India; receiving rupee payments would leave Russia with an excess of rupees and no way to spend them.

For now, Russia and India are trading in UAE Dirhams, which helps to a certain extent as it is pegged to the dollar. But this does not completely solve the INR depreciation issue. UAE is a net exporter to India, so India buying more Dirhams for Russian trade will cause the INR to depreciate against the Dirham. 

India also cannot stockpile much Ural oil due to its limited strategic petroleum reserve of 5.33 MMT, which covers only about 9.5 days of national demand. In contrast, countries like China have significant reserves that can meet nearly 50 days of their national demand.

A potential solution for India is to rapidly refine and export more Russian oil. But Indian oil refineries are operating at full capacity, with overall capacity utilization exceeding 100% since May 2022. In January 2023, capacity utilization reached 106.9%, and state-run firms like Indian Oil Corporation reported even higher figures at 110%. India cannot increase oil exports without investing in additional capacity expansion projects.

Russian oil wears an Indian disguise, as India becomes the top fuel exporter to Europe

The European Union banned seaborne crude imports from Russia starting from February 2023. At the time, Russia accounted for nearly 30%of European crude imports.

While the US has increased its crude oil exports to Europe by morethan 70%, it is unable to meet all of Europe’s needs. So Moscow is rerouting Russian oil to Europe via refineries in India, China, Africa and the Middle East. India has become the hub for sending Russian Ural to Europe as refined oil. 

India’s oil refineries are processing and exporting Russian crude as a clean fuel. India supplied roughly 3,65,000 barrels per day to Europe in April 2023, an increase of 187% since the start of the Russia-Ukraine war in February 2022. 

Data Source: Kpler and Bloomberg

However, India cannot completely substitute Russian oil exports to Europe, which averaged around 1.1 million barrels per day before the start of the conflict. India is limited here by its refining infrastructure.

The idea behind the sanctions was to cripple Russia's revenue source without completely cutting off the global oil supply. The plan has worked, but it's not been foolproof. Russia is still making money, just not as much. Oil supply to Europe has continued, but routed through India and China. For the first time, countries like India and China, which used to be victims of international oil politics, are gaining from this oil war.

Screener: Stocks that beat analyst estimates for revenue and net profit in Q4FY23

With the Q4FY23 result season in full swing, we take a look at the stocks that have beat analyst estimates for revenue and net profit on Trendlyne’s Forecaster. This screenerfeatures stocks with the highest positive surprises in estimates for revenue and profit in Q4FY23.

Stocks from the banking, NBFC, pharmaceuticals and IT consulting & software industries dominate the screener. Stocks that stand out are Machrotech Developers, ICICI Lombard General Insurance, Syngene International, IDFC First Bank, Supreme Industries and Welspun India.

Macrotech Developers recorded the highest positive surprise in Forecaster estimates, beating revenue estimates by 15.1% in Q4FY23. However, the realty company’s revenue fell 5.5% YoY in the quarter to Rs 3,255.4 crore. It also beat Forecaster estimates for net profit by 47.5% as it grew by 39% YoY to Rs 744.4 crore.

ICICI Lombard General Insurance surpassed Trendlyne’s Forecaster estimates for revenue by 14.3% as it posted a 12.3% YoY growth in premiums earned in Q4FY23. The rise in premium earned from the retail health, corporate health and motor insurance segments aided the growth in net premium earned. A net profit growth of 39.8% YoY to Rs 436.9 crore helped the general insurer beat the Forecaster estimates by 12.1%.

You can find some popular screenershere.

Signing off this week,

The Trendlyne Team