My Newsfeed

T
Trendlyne Marketwatch
06 Jun 2023
Market closes flat, IKIO Lighting’s IPO gets bids for 155% of the available shares on offer

Trendlyne Analysis

Nifty 50 closed at 18,599.00 (5.2, 0.0%), BSE Sensex closed at 62,792.88 (5.4, 0.0%) while the broader Nifty 500 closed at 15,878.40 (18.9, 0.1%). Of the 1,977 stocks traded today, 1,062 were gainers and 845 were losers.

Indian indices recover from a day low and close flat, with the Nifty 50 hovering above the key 18,600 mark. The volatility index, Nifty VIX, rises above 11 at the close. A report by Google, Temasek and Bain stated that India’s internet economy is expected to grow six times and touch USD 1 trillion by 2030. 

Nifty Smallcap 100 closed in the green, while Nifty Midcap 100 closes flat following the benchmark index. Nifty Realty and Nifty Auto closed sharply higher than Monday’s closing levels. According to Trendlyne’s sector dashboard, hardware technology & equipment emerged as the top-performing sector of the day with a rise of over 6.31%. 

Most European indices trade sharply lower except for Switzerland’s SMI trading in the green. US indices futures trade lower indicating a negative start. The ISM non-manufacturing PMI of the US fell to 50.3 in May against estimates of 52.2. The April non-manufacturing PMI stood at 51.9.

  • JSW Steel beats Tata Steel in QoQ revenue and profit growth, one-year price change and FII holdings. But it lags in PE ratio, one-year dividend yield, MF holdings and broker average rating.

  • Dalmia Bharat and Craftsman Automation touch their 52-week highs of Rs 2,170 and Rs 3,969 respectively. Dalmia has risen 7.3% in the past month, while the other increased by 19.8%.

  • According to reports, Jefferies maintains a ‘Buy’ rating on Axis Bank with a target price of Rs 1,150, indicating an upside of 19%. The brokerage is optimistic about the progress of Axis Bank's integration with Citibank India's retail platform, expecting it to generate cost synergies. It also expects the bank’s loan book to grow and asset quality to improve in the coming quarters.

  • La Opala RG rises as Nippon India Mutual Fund purchases 1.7% of equity stake (18,82,205 shares) in the company at an average price of Rs 399.05 per share.

  • IKIO Lighting’s Rs 607 crore IPO gets bids for 1.55X the available 1.5 crore shares on offer on the first day of bidding. The retail investor quota gets bids for 1.64X of the available 76.9 lakh shares on offer.

  • Morgan Stanley expects the BSE Sensex to reach the 68,500 level by December. The brokerage highlights that Indian stocks remain attractive despite rich valuations.

  • Coforge falls by over 3.5% in trade and ranks low on Trendlyne's checklist with a score of 43.5%. The stock is in the 'Strong Sell' zone and appears in a screener of stocks with a negative breakdown at the third resistance level.

  • Sharda Cropchem rises over 10% in trade and ranks high on Trendlyne's checklist with a score of 68.2%. The stock is in the 'Buy' zone, and appears in a screener for affordable stocks with high ROE and momentum.

  • NTPC successfully commercializes the remaining 10 MW of the 20 MW Gandhar Solar PV project at Gandhar, Gujarat. The first 10 MW was commissioned on August 23, 2022.

  • Bajaj Finance, Asian Paints, JSW Steeland Nestle India's TTM price-to-earnings ratios trade above that of their respective industries.

  • Hardware technology & equipment, media and realtysectors rise more than 4% in the past week.

  • Thermax is falling as an arbitration panel rules against the company regarding the malfunctioning of two gas turbo generators at a customer site. The panel has directed Thermax to repair the generators and pay Rs 250 crore to the customer to cover additional power expenses and arbitration cost.

  • BoB Capital Markets maintains its ‘Buy’ rating on Hindustan Unilever with a target price of Rs 3,069. This implies an upside of 14.1%. the brokerage remains positive about the firm’s prospects due to its market share gains, investments into brand building and innovation. It expects the company’s revenue to grow at a CAGR of 10.5% over FY23-25.

  • Emami rises as it buys back a total of 23.68 lakh equity shares, amounting to Rs 94 crore, at Rs 397 per share on June 5. It appears on a screener of stocks with low debt.

  • Jefferies lowers the target price on Sunteck Realty to Rs 415 from the earlier Rs 621 due to the company’s weak Q4 earnings. However, the brokerage maintains its ‘Buy’ rating, expecting a 20-25% pre-sales growth over FY22-25.

  • Man Infraconstruction rises as its subsidiary, MICL Creators LLP, plans to undertake the development of a residential project in Ghatkopar, Mumbai. The project will have a saleable carpet area of 4 lakh sqft and the potential to generate Rs 12,000 crore over four years.

  • IT stocks like Persistent Systems, MphasiS and Tech Mahindra fall more than 2% in trade today. All constituents of the broader Nifty IT index are also trading in the red.

  • Larsen & Toubro's buildings and factories arm wins orders worth Rs 1,000-2,500 crore to construct commercial towers at two locations in Mumbai.

  • Leelavathi Reddy, P Kalpana Reddy and Mitta Madhavi, promoters of MTAR Technologies, sell stakes of 1.13%, 0.33% and 0.33% in the company respectively on Thursday.

  • CLSA expects a moderate improvement in the operating margins of FMCG companies in FY24. The brokerage favours Hindustan Unilever, ITC, and Dabur in the space, while maintaining a 'Sell' rating on Britannia Industries and Nestle.

  • President of India, promoter of Coal India, sells a 3% stake in the company for Rs 4,185 crore. The government now holds a 63.13% stake after the sale.

  • Adani Enterprises is rising as it completes the prepayment of share-backed loans worth $2.1 billion, according to reports. The promoters have also prepaid a $700 million debt taken for the acquisition of Ambuja Cements.

  • IKIO Lighting raises Rs 181.95 crore from anchor investors ahead of its IPO by allotting 63.84 lakh shares at Rs 285 each. Investors include HDFC Mutual Fund, ICICI Prudential, Goldman Sachs, Quant Mutual Fund, Malabar India Fund and Citigroup Global Markets Mauritius.

  • Reports suggest that 19.4 lakh shares (0.14% equity) of Larsen & Toubro, amounting to Rs 441.3 crore, change hands in a large trade.

  • JK Cement is rising as it agrees to acquire a 100% stake in Toshali Cements for a cash consideration of Rs 157 crore. The management expects this acquisition to support the company's expansion in Eastern India. The stock shows up in a screener for companies with book value per share improving over the past two years.

  • Indoco Remedies' board of directors approves the acquisition of an 85% equity stake in Florida Pharmaceutical Products (FPP) Holding Company for $4 million. This acquisition will provide Indoco with synergies and access to marketing and distribution channels in the USA.

  • Indian Energy Exchange’s total monthly trade volume in May rises 8% YoY to 8,251 million units (MU) due to increased power demand. The average spot power price falls 30% YoY on the back of improved supply, higher liquidity, and cooler weather conditions. The stock shows up in a screenerfor companies with improving cash flows from operations over the past two years.

Riding High:

Largecap and midcap gainers today include JSW Energy Ltd. (263.35, 5.51%), Ambuja Cements Ltd. (459.15, 4.58%) and PB Fintech Ltd. (624.05, 4.03%).

Downers:

Largecap and midcap losers today include Persistent Systems Ltd. (4,981.05, -4.38%), Coforge Ltd. (4,415.50, -3.85%) and MphasiS Ltd. (1,914.40, -3.67%).

Volume Shockers

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

Top high volume gainers on BSE included Aegis Logistics Ltd. (346.70, 8.99%), Sterling and Wilson Renewable Energy Ltd. (318.60, 8.22%) and Mahindra CIE Automotive Ltd. (492.20, 7.28%).

Top high volume losers on BSE were Indian Energy Exchange Ltd. (147.20, -3.92%) and Rallis India Ltd. (188.90, -1.54%).

IFB Industries Ltd. (803.15, 0.40%) was trading at 17.0 times of weekly average. Shyam Metalics and Energy Ltd. (311.20, 5.89%) and Prism Johnson Ltd. (127.85, 4.32%) were trading with volumes 15.9 and 11.9 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

42 stocks made 52-week highs,

Stocks touching their year highs included - 3M India Ltd. (27,415.00, 2.28%), AIA Engineering Ltd. (3,112.90, 0.40%) and Ajanta Pharma Ltd. (1,414.35, 2.54%).

20 stocks climbed above their 200 day SMA including Aegis Logistics Ltd. (346.70, 8.99%) and Sterling and Wilson Renewable Energy Ltd. (318.60, 8.22%). 10 stocks slipped below their 200 SMA including MphasiS Ltd. (1,914.40, -3.67%) and Trident Ltd. (33.35, -1.91%).

 
T
Trendlyne Marketwatch
05 Jun 2023
Market closes higher, Tata Power’s arm commissions a 110 MW solar power project

Trendlyne Analysis

Nifty 50 closed at 18,593.85 (59.8, 0.3%), BSE Sensex closed at 62,787.47 (240.4, 0.4%) while the broader Nifty 500 closed at 15,859.50 (48.3, 0.3%). Of the 2,008 stocks traded today, 1,161 were gainers and 778 were losers.

Indian indices maintained their gains and closed in the green, with the Nifty 50 closing just below the 18,600 mark. Investors are looking ahead to RBI's three-day monetary policy committee (MPC) meeting, scheduled to start on Tuesday. Analysts expect the MPC to keep the benchmark policy repo rate unchanged at 6.50%.

Nifty Smallcap 100 closed in the green, following the benchmark index. However, Nifty Midcap 100 pared its early gains and closed flat. Nifty Auto and Nifty Energy closed higher than Friday’s close. According to Trendlyne’s sector dashboard, Telecommunications Equipment was the top-performing sector of the day.

Major Asian indices closed in the green, except for Taiwan’s TSEC 50 and China’s Shanghai SE Composite, which closed flat. European indices continued to trade mixed, in line with US indices futures, which also traded mixed. Investors awaited for cues from purchasing managers index or PMI data of Germany, France and Italy, scheduled to be released later today.

  • Relative strength index (RSI) indicates that stocks like Birla Corp, Dixon Technologies, IDFC First Bank and Can Fin Homes are in the overbought zone.

  • Suresh Iyer, MD & CEO of Can Fin Homes, says that demand is improving and expects the company's AUM (assets under management) to grow around 18-20%.

  • eClerx Services, Raymond, Narayana Hrudayalaya, Tata Communications and Bata India outperform their industries in terms of annual growth and capital returns.

  • Wonderla Holidays is rising as the Tamil Nadu government grants a 10% waiver on the local body tax (LBT) for a period of 10 years from the date of commencement of operations. The waiver for its Chennai project is subject to the condition that commercial operations must commence within two years from June 2, 2023.

  • Britannia Industries' annual return on equity (RoE) stands at 65.7% in FY23, rises 39.2 percentage points over the past five years.

  • Electronic components, shipping and other non-ferrous metals industries rise more than 10% over the past week.

  • Suzlon Energy surges in trade today as it becomes the first Indian wind energy company to reach 20GW of worldwide wind energy installations. It appears on a screener for stocks with strong annual EPS growth.

  • Tata Power’s arm, Tata Power Renewable Energy, commissions a 110 MW solar power project in Rajasthan, which will supply green power to the Kerala State Electricity Board. The stock shows up in a screener for companies with high TTM EPS growth.

  • Indian rupee depreciates 14 paise to 82.53 against the US dollar in early trade today due to a strong dollar and rising crude oil prices.

  • Telecommunications equipment manufacturers like ITI, HFCL, Sterlite Technologies and Optiemus Infracom are rising in trade. The broader sector of telecommunications equipment is also trading in the green.

  • ICICI Securities maintains its ‘Sell’ rating on Mazagon Dock Shipbuilders with a target price of Rs 600. This implies a downside of 35.1% from the current market price. The brokerage remains pessimistic about the company’s long-term prospects due to the absence of order visibility and uncertainty regarding repeat orders. It expects the firm’s net profit to grow at a CAGR of 2.5% over FY23-25.

  • JP Morgan downgrades Vedanta's rating to 'Neutral' from 'Overweight' and lowers the target price to Rs 280. It maintains its 'Underweight' call on Hindustan Zinc and reduces the target price to Rs 205. The brokerage explains that the sharp decline in LME zinc prices will result in EPS cuts by 23% for FY24/25.

  • Lupin touches its 52-week high of Rs 831.3 per share after launching Darunavir tablets in the US. These tablets are a generic version of Janssen Products' Prezista tablets and are used for HIV treatment. IQVIA reports estimate sales of $308 million for the drug in FY23.

  • Patel Engineering rises as it wins an order worth Rs 519.5 crore for the design and construction of a water tunnel and allied works in Raigad district from CIDCO.

  • Nava is surging as its Zambian subsidiary, Maamba Collieries, repays loans worth $277 million (approximately Rs 2,296 crore). The subsidiary's outstanding debt currently stands at $206 million (approximately Rs 1,707 crore).

  • NTPC rises marginally as its subsidiary, NTPC Green Energy, enters into a joint venture (JV) with Indian Oil Corporation (IOCL). The JV aims to develop renewable energy power projects to supply 650 MW for IOCL. The JV will be equally owned by NTPC Green Energy and IOCL.

  • India’s Services PMI falls to 61.2 in May, compared to 62 in April. However, the PMI reading has remained above the 50-mark for 22 consecutive months.

  • RateGain Travel Technologies rises as Aditya Birla Sun Life AMC increases its stake by 3.2% (25,34,000 shares). Following this transaction, ABSL's stake in RateGain stands at 5.2%.

  • Tata Chemicals surges in trade as it reportedly signs an MoU with the Gujarat government to establish a 20 GW capacity lithium-ion cell manufacturing factory, investing Rs 13,000 crore. The company plans to rationalize its US operations by reorganizing the number of intermediate entities. It appears in a screener for stocks with low debt.

  • Wipro sets June 16, 2023, as the record date for the Rs 12,000 crore buyback plan of up to 26.9 crore equity shares (representing 4.91%), with a face value Rs 2 each from the shareholders.

  • Retail sales for the automotive industry rise by 10.1% YoY to 20.2 lakh units in May, shows data from the Federation of Automotive Dealers' Association. Two-wheeler retail sales are up 9.3% YoY, while cars increase by 4.3% YoY.

  • Media stocks like Zee Entertainment Enterprises, PVR INOX, Sun TV Network and Nazara Technologies are rising in trade. The broader sectoral index Nifty Media is also trading in the green.

  • Angel One rises as the average daily turnover (ADTO) for May increases by 146.4% YoY to Rs 22,03,700 crore. The surge of 148.3% YoY in futures and options ADTO contributes the most to the overall increase.

  • Paytm (One97 Communications) is rising as its loan disbursements grow by 168% YoY to Rs 9,618 crore in May 2023, with a distribution growth of 54% YoY to 85 lakh loans. It appears in a screener of stocks with brokers upgrading recommendations.

  • Minda Corp’s board of directors approves a proposal to raise Rs 600 crore through further issuance of securities through public or private offerings, including preferential issue, qualified institutions placement, or further public offer. The stock shows up in a screener for companies with low debt.

Riding High:

Largecap and midcap gainers today include Torrent Power Ltd. (588.55, 4.39%), Adani Transmission Ltd. (828.00, 4.20%) and Mahindra & Mahindra Ltd. (1,395.40, 4.03%).

Downers:

Largecap and midcap losers today include Gujarat Fluorochemicals Ltd. (3,192.20, -3.30%), Info Edge (India) Ltd. (4,136.90, -3.03%) and Au Small Finance Bank Ltd. (750.95, -2.91%).

Crowd Puller Stocks

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

Top high volume gainers on BSE included Mazagon Dock Shipbuilders Ltd. (986.10, 17.62%), Cochin Shipyard Ltd. (558.90, 11.49%) and NLC India Ltd. (98.25, 6.16%).

Top high volume losers on BSE were Brightcom Group Ltd. (19.55, -4.87%), Endurance Technologies Ltd. (1,485.30, -1.15%) and L&T Finance Holdings Ltd. (105.05, -0.47%).

Rossari Biotech Ltd. (805.25, 5.85%) was trading at 11.7 times of weekly average. Tata Chemicals Ltd. (995.55, 2.66%) and Galaxy Surfactants Ltd. (2,551.00, 3.57%) were trading with volumes 10.0 and 9.7 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

43 stocks hit their 52-week highs,

Stocks touching their year highs included - 3M India Ltd. (26,660.00, 1.55%), AIA Engineering Ltd. (3,109.65, 1.68%) and Apollo Hospitals Enterprise Ltd. (4,950.20, -0.34%).

20 stocks climbed above their 200 day SMA including Rossari Biotech Ltd. (805.25, 5.85%) and Trident Ltd. (34.00, 5.26%). 9 stocks slipped below their 200 SMA including Aegis Logistics Ltd. (318.10, -4.67%) and Swan Energy Ltd. (244.90, -2.91%).

 
logo
The Baseline
05 Jun 2023
By Abdullah Shah

Investors usually prefer companies with a high return on capital employed (ROCE) of over 20%, as they are able to efficiently use their capital to generate revenue. In this edition of Chart of the Week, we examine companies that have outperformed their sectors in terms of ROCE in FY23. These companies are from sectors with high ROCE that outperformed the Nifty 50. 

The software and services sector outperformed the Nifty 50’s ROCE by the highest margin in FY23 - by 20.7 percentage points. Companies with the highest ROCE in this sector are Tata Consultancy Services (TCS), Tata Elxsi and Easy Trip Planners, standing at 57.6%, 41.7% and 49.9% respectively. 

TCS’ high ROCE partly came from the sharp rise in its current liabilities, which rose at a three-year CAGR of 17.2%. This rise in current liabilities reduces the capital employed (total assets minus current liabilities), and in turn, boosts returns on capital. According to reports, 27% of TCS' business is currently funded by suppliers/short-term creditors.

Tata Elxsi’s ROCE increased due to robust growth in revenue (27.3% YoY) from software development & services and system integration & support services for FY23. These helped operating profit rise by 25.5% in FY23.

The FMCG sector has outperformed the Nifty 50’s ROCE by 13 percentage points in FY23. Companies with the highest annual ROCE in the sector are Nestle, Procter & Gamble Hygiene & Healthcare and Colgate-Palmolive, achieving 57.8%, 97.3% and 79.3% respectively in FY23. 

To sustain and improve its already high ROCE, Nestle plans to spend a major portion of its Rs. 1,200 crore capex to reduce pressure on over-utilized plants and increase food and chocolates production over 2023. Colgate-Palmolive’s annual ROCE surpassed the sector by 47.5 percentage points in FY23. Despite outperforming the sector, the company's ROCE has been falling for the past two years. 

The Food, Beverage & Tobacco sector has also outperformed Nifty 50’s ROCE by 11.3 percentage points on the back of strong ROCE posted by ITC, VST Industries and Bombay Super Hybrid Seeds. Their annual ROCE stands at 35.8%, 35.7% and 35.6% respectively. 

The Textile, Apparel, and Accessories sector has showcased an impressive performance, surpassing the Nifty 50 by 10.2 percentage points in terms of ROCE. It  was driven by strong ROCE from Page Industries, PDS and Titan, reaching 53.3%, 35.4% and 34.5% respectively in FY23. Despite a high ROCE, Page Industries posted a muted quarter in Q4FY23 due to increased inventory levels during the inflationary period. Its Q4 net profit fell by 58.9% YoY and revenue fell by 12.8%. 

Jhunjhunwala’s top bet, Titan, outperformed its sector by 5.6 percentage points in Annual ROCE. For FY 24-25, the company plans to set up 40+ new stores in the jewelry division and increase its international presence to 25 stores by 2024. It has observed a 157% rise in capital employed (Total Assets - Current Liabilities) over the past five years. For FY23, growth in sales of jewelry and watches helped increase the EBIT margin and ultimately ROCE.

The diversified consumer service sector outperformed the Nifty 50’s ROCE by 6.8 percentage points in FY23. IRCTC, a miniratna PSU, surpassed its sector by 24.3 percentage points. Its EBIT increased in FY23 on the back of robust growth in the catering, rail neer and state teertha segments. By the end of FY23, IRCTC plans to set up rail neer plants in Bhubaneshwar, Vijayawada and Kota, which will increase the production capacity by 3 lakh litres, reaching a total capacity of 19.8 lakh litres.

Despite being capital-intensive industries, metals & mining and chemicals & petrochemicals have managed to outperform the Nifty 50 by 6.4 percentage points and three percentage points, respectively. In the metals & mining sector, Hindustan Zinc was the highest outperformer, while Fine Organic Industries excelled in terms of ROCE in the chemicals & petrochemicals sector.

Finally, CG Power & Industrial Solutions stands out as the top-performing company in the General Industries sector, boasting the highest ROCE among its peers. The company has planned to further increase the production capacity of motors at its Ahmednagar and Goa plants with an investment of Rs 230 crore, and transformers at its Bhopal and Malanpur plants with an investment of Rs 126 crore in FY24.  

 
logo
The Baseline
02 Jun 2023
Five Interesting Stocks Today
  1. AU Small Finance Bank: Thisbanking stock has outperformed the Nifty Private Bank index by 14.3% in the past month, and rose 16.4%, according to Trendlyne’sTechnicals. Currently, the stock is trading at an all-time high. In Q4FY23, the bank’s deposits grew by 32% YoY to Rs 69,365 crore. Advances also improved by 26% YoY to Rs 59,158 crore, led by the commercial banking division.

    The Net Interest Margin (NIM) of the bank is one of the highest among its peers at 6.1%. However, the margins are expected to decrease due to rising cost of funds and limited scope to raise interest rates. Its bottom line was also aided by lower provisioning.

    The gross NPA remains steady at 0.7%, backed by high-rated customers. The bank is also investing in newer product lines like credit cards and video banking. The company shows up in ascreener for consistently high-return stocks in the Nifty 500 for five years.

In its future outlook, AU Small Finance Bank’s management said that it plans o focus on building the asset book and maintaining asset quality. The bank’s CEO, Sanjay Agarwal, expects the asset book to grow 29-30% in FY24, aided by branch expansion and market share gains. Margin compression and elevated cost ratios are expected to put pressure on the return on assets number. 

ICICI Securities suggests that the bank’s high ROA and investments toward franchise build-up will help grow the asset base.Its higher provision coverage ratio of 75% has resulted in lower provisioning, and a focus on retail customers will help in maintaining asset quality.

  1. Craftsman Automation: Thisauto part and equipment manufacturer has seen its stock price rise by 12.6% in the past week, while the broader benchmarkNifty Auto increased by 2.6%. The stock is currently trading at a 52-week high, according toTrendlyne’s Technicals. The firm’s revenue grew by 20% and net profit by 37% YoY in Q4FY23. The revenue growth was driven by auto powertrain and AI products. During the quarter, the company maintained a stable EBITDA margin of 21.3%. The profit growth was in part due to lower taxes from the recent tax regime change.

    The firm is also in the final stages of validation to supply critical parts for a domestic SUV, starting in July 2023. The firm plans a capex of Rs 320 crore in FY24, against 309 crore in FY23. The capex would be spent on the refurbishment of outdated equipment and semi-automation in material handling. The firm also aims to reduce its debt by Rs 200 crore in FY24, bringing the net debt below Rs 1,100 crore. The stock shows up in ascreener for companies with high TTM EPS growth.

Craftsman Automation’s management has guided a revenue growth of 20% for FY24, aided by higher volumes from new customers and a ramp-up in powertrain orders from Stellantis, an automotive manufacturer based in the Netherlands. However, the projected growth for powertrains in FY24 is lower at 14%, whereas Aluminium and industrial products are expected to grow by 20% or more. Exports are expected to slow down owing to recessionary fears in European markets. In terms of domestic growth, the commercial and passenger vehicle segment is expected to drive the first half of FY24,  while the construction and farm machinery division will fuel growth in the second half.

According toMotilal Oswal, the firm’s track record of market leadership in the auto component industry is uncommon. The firm has managed to create niche products and demonstrated superior capital efficiency, resulting in higher growth numbers than the industry. The brokerage has maintained a ‘Buy’ rating on the company.

  1. Kalpataru Power Transmission: This electric utility company’s promoters sold 96.3 lakh shares (nearly 6% stake) worth Rs 467.8 crore in a bulk deal on May 30. Parag Mofatraj Munot (promoter) and two promoter group entities, Kalpataru Constructions and Kalpataru Viniyog, sold their shares at around Rs 485 per share, which was lower than the stock’s opening of Rs 503.9 on Tuesday. ICICI Prudential Mutual Fund picked up nearly 15 lakh shares worth Rs 72.5 crore on the same day. 

Since the promoter sale, the stock has risen 5.8% till Friday. It shows up in a screener for stocks with strong momentum. This uptrend seems to be driven by the firm’s robust order book and healthy business outlook. As of the end of FY23, its order book stood at Rs 45,918 crore, and its order inflow for FY23 grew by 39% YoY to Rs 25,241 crore. Leveraging its presence across diverse geographies and segments, the company is pursuing growth in verticals such as water, metro and airports in both domestic and international markets. The management points out that the merger with its subsidiary, JMC Projects, has enhanced Kalpataru Power’s abilities to bid on larger and more complex projects, leading to cost synergies. The company is focused on divesting its non-core investments to free up capital and reduce debt over the coming quarters. 

ICICI Securities believes that the company is well-placed to benefit from the government’s increased focus on infrastructure, given its strong order pipeline, geographical expansion, and strengthening balance sheet. According to Trendlyne’s Forecaster, the consensus recommendation on the company from 13 analysts is ‘Buy’, with 10 rating it ‘Strong Buy’, two ‘Buy’ and one ‘Hold’. 

  1. Torrent Pharmaceuticals: This pharma company rose over 7% and touched an all-time high of Rs 1,884.9 on Wednesday after reporting strong Q4 results. The company posted a net profit of Rs 287 crore during the quarter, led by lower raw material expenses, compared to a net loss of Rs 118 crore in Q4FY22. The loss incurred in the previous year’s quarter was on account of a one-time impairment provision and costs from the discontinuation of its liquid business in the US. 

Despite posting a profit, it missed Trendlyne’s Forecaster estimates by 12%. Torrent’s India revenue, which contributes 59% to total revenue, has increased by 22% YoY, led by growth in chronic therapies and new launches. For FY23, its revenue rose by 13% to Rs 9,620 crore, marking the seventh consecutive quarter of YoY revenue growth. 

Meanwhile, the company’s EBITDA margins have also improved by 286 bps to 29.2%, led by a favourable product mix and lower R&D expenses in the US. The management has guided for margins to improve by 60-100 bps every year due to price increases across markets. It is also targeting 2% volume growth in its base business.  

Following the release of the company’s results, ICICI Securities maintains its ‘Hold’ rating but revises the target price to Rs 1,645 from Rs 1,630. According to the brokerage, Torrent is expected to take a few more quarters to fully realise synergies from the Curatio portfolio. Torrent acquired Curatio Health Care for Rs 2,000 crore in September 2022 to enhance its presence in dermatology.  The analysts also expect higher interest costs and depreciation to affect Torrent’s profitability in the near term. 

  1. Page Industries: This other apparels & accessories stock plunged almost 9% and touched its 52-week low of Rs 34,952.6 on May 26 as its Q4FY23 net profit declined by 58.9% YoY to Rs 78.3 crore. Its revenue has also fallen by 12.8% YoY to Rs 969.1 crore, affected by low demand. This caused the company to feature in a screener of stocks with low Piotroski scores, which indicates weak financial performance. 

Revenue and net profit missed Trendlyne’s Forecaster estimates by 15.2% and 42.9% respectively. It has also underperformed its industry in terms of net profit and revenue. Its EBITDA margin witnessed a drop of 10.1 percentage points on the back of increasing raw material, inventory, employee benefit and finance costs. 

According to VS Ganesh, Managing Director of the company, Page Industries saw a reduction in profitability due to higher inventory levels acquired during an inflationary period and lower than optimal capacity utilisation. However, the company has implemented a new inventory management system (auto replenishment strategy or ARS) to better manage its inventory.

Axis Securities maintains its ‘Hold’ rating on the stock with a downgraded target price of Rs 40,000 per share. This indicates a potential downside of 3%. The brokerage believes that the implementation of ARS will affect volume growth and margin expansion in the next two quarters. It expects the company’s profitability to improve only in H2FY24.  

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

 
T
Trendlyne Marketwatch
02 Jun 2023
Market closes higher, ICICI Securities maintains its ‘Buy’ rating on Lemon Tree Hotels

Trendlyne Analysis

Nifty 50 closed at 18,534.10 (46.4, 0.3%), BSE Sensex closed at 62,547.11 (118.6, 0.2%) while the broader Nifty 500 closed at 15,811.20 (50.9, 0.3%). Of the 1,978 stocks traded today, 1,214 were on the uptick, and 709 were down.

Indian indices maintain their gains and close in the green, with the Nifty 50 hovering above the key 18,500 mark. The volatility index, Nifty VIX , dropped below 12 at the close. Vedanta Group raises USD 450 million from two of its competitors Trafigura Group and Glencore International AG.

Nifty Midcap 100 and Nifty Smallcap 100 closed in the green, following the benchmark index. Nifty Realty and Nifty Metal closed sharply higher than Thursday’s closing levels. According to Trendlyne’s sector dashboard, metals & mining emerged as the top-performing sector of the day with a rise of over 1.48%.

Most European indices trade sharply higher amid positive global cues. US indices futures trade in the green indicating a positive start. Chinese government mulls to provide a relief package to support the real estate sector. Bank of Japan is drafting new policy to bring the economy out of deflation and achieve a 2% inflation target.

  • Hero MotoCorp sees a long buildup in its June 29 future series as its open interest rises 11.4% with a put-call ratio of 0.61.

  • Healthcare equipment & supplies, media, and realtysectors rise more than 4% in the past week.

  • ICICI Securities maintains its ‘Buy’ rating on Lemon Tree Hotels and raises the target price to Rs 137 from Rs 132. This implies an upside of 47.4%. The brokerage remains optimistic about the firm’s prospects, given its plans to increase its room count, open the Mumbai airport hotel, and focus on debt reduction. It expects the company’s revenue to grow at a CAGR of 29.1% over FY23-25.

  • Mahindra & Mahindra Financial Services touches its 52-week high of Rs 299.3 per share as its loan disbursement grows by 39% YoY to Rs 4,150 crore in May. The company features in a screener of stocks with high momentum scores.

  • MRF, Honeywell Automation India, Page Industries, 3M India and Shree Cements are trading above their second support or S2 levels.

  • GST revenue collections rise 12% YoY to Rs 1.57 lakh crore in May, surpassing the Rs 1.4 lakh crore mark for the 14th consecutive month.

  • CreditAccess Grameen's annual RoCE stands at 44.9%, outperforming the finance industry by 24 percentage points.

  • TVS Motor rises as its monthly two-wheeler wholesales in May increase by 11.2% YoY to 3,19,295 units, driven by robust growth in domestic sales. Electric vehicle wholesales also surge by 580.8% YoY to 17,953 units, while its international business suffers a significant decline. It appears in a screener of stocks with strong annual EPS growth.

  • Cyient and Craftsman Automation touch their all-time highs of Rs 1,524.7 and Rs 3,865.5 per share respectively. The former has risen 25.9% over the past month, while the latter gained 22.1%.

  • IIFL Finance rises over 7% in trade and ranks high on Trendlyne's checklist with a score of 69.6%. The stock is in the 'Buy' zone and also appears in a screener for stocks with a positive breakout at the third resistance level.

  • Jefferies upgrades its target price for Bajaj Finance to Rs 8,310 from the earlier Rs 7,280, as it expects loans to grow and funding costs to fall. The brokerage says Bajaj Finance is among their top picks in the financials space and gives a ‘Buy’ rating.

  • NHPC rises as it partners with Vidhyut Utpadan, a Nepal-based company, for developing a 480 MW Phukot Karnali hydroelectric project in Nepal.

  • abrdn (Mauritius Holdings) 2006, promoter of HDFC Life Insurance, sells its entire 1.7% stake in the company on Wednesday.

  • Chris Wood, Global Head of Equity Strategy at Jefferies, makes changes to his Greed & Fear India Long-only Portfolio. He has initiated an investment in AU Small Finance Bank with a 3% weight and has trimmed his stake in CAMS.

  • RateGain Travel Technologies is rising despite Avataar Holdings offloading 55 lakh shares (5% stake) worth Rs 206 crore through an open market transaction. Post this, Avataar Holdings' stake has been reduced to 2.07% from 7.07%.

  • MOIL is rising as its manganese ore production in May grows 43% YoY to 1.53 lakh tonnes, while its sales surge by 72% YoY. The stock shows up in a screener for companies with improving cash flows from operations over the past two years.

  • Dixon Technologies (India), Astral and G R Infraprojects outperform the Nifty 50 index over the past month post their Q4FY23 results.

  • CLSA reports that auto sales in May have received support from the marriage season. The brokerage highlights that market leaders continue to lose their retail share on a YoY basis.

  • Paras Defence and Space Technologies rises over 7% as it signs an MoU with Israel's CONTROP Precision Technologies. The MoU establishes a joint venture for manufacturing, installation, logistics support, and more in the electro-optic field as part of the Make in India initiative. Paras will hold a 30% stake in the JV, with CONTROP owning the remaining 70%.

  • Eicher Motors' monthly sales of 350cc motorcycles grow by 28% YoY to 69,038 units in May 2023, while the international business experiences a significant decline. The total motorcycle sales increase by 22% YoY to 77,461 units. It appears in a screener for stocks with consistently growing revenue over the past four quarters.

  • Indian rupee appreciates 10 paise to 82.30 against the US dollar in early trade today.

  • AstraZeneca Pharma surges in trade today as it receives permission from the CDSCO (Central Drugs Standard Control Organization) to import, sell, and distribute Tremelimumab (Imjudo) concentrate. Tremelimumab is used in the treatment of patients with unresectable hepatocellular carcinoma. The stock appears on a screener for companies approaching their 52-week high.

  • PSU banks like Indian Overseas Bank, Bank of Maharashtra, Indian Bank, Punjab National Bank and Canara Bank are rising in trade. All constituents of the broader Nifty PSU Bank index are also trading in the green.

  • Hero MotoCorp's monthly two-wheeler sales grow by 6.7% YoY to 5,19,474 units in May 2023. Its domestic sales experience a robust growth of 9% to 5,08,309 units. It appears in a screener of stocks with increasing profit for the past three quarters.

  • Tata Motors’ total wholesales in May decline by 1.6% YoY to 74,973 units, with total domestic wholesales falling by 2% YoY to 73,448 units. Its commercial vehicle sales also decrease 12% YoY, while passenger vehicle wholesales rise 6% YoY. The stock shows up in a screener for companies with declining net cash flows.

Riding High:

Largecap and midcap gainers today include FSN E-Commerce Ventures Ltd. (135.75, 7.61%), GlaxoSmithKline Pharmaceuticals Ltd. (1,390.95, 4.80%) and Zomato Ltd. (71.15, 4.71%).

Downers:

Largecap and midcap losers today include Adani Total Gas Ltd. (674.40, -2.87%), Gujarat Gas Ltd. (475.00, -2.71%) and Indraprastha Gas Ltd. (459.25, -2.65%).

Crowd Puller Stocks

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

Top high volume gainers on BSE included Graphite India Ltd. (375.45, 11.89%), HEG Ltd. (1,303.40, 9.67%) and TV18 Broadcast Ltd. (39.65, 7.89%).

Top high volume loser on BSE was Cholamandalam Financial Holdings Ltd. (810.00, -0.54%).

Nuvoco Vistas Corporation Ltd. (359.40, 4.93%) was trading at 13.0 times of weekly average. Cyient Ltd. (1,459.00, 6.34%) and FSN E-Commerce Ventures Ltd. (135.75, 7.61%) were trading with volumes 8.6 and 7.2 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

42 stocks hit their 52-week highs,

Stocks touching their year highs included - 3M India Ltd. (26,200.05, -0.34%), Apollo Hospitals Enterprise Ltd. (4,967.30, 3.18%) and Aurobindo Pharma Ltd. (662.50, 0.58%).

19 stocks climbed above their 200 day SMA including Graphite India Ltd. (375.45, 11.89%) and TV18 Broadcast Ltd. (39.65, 7.89%). 9 stocks slipped below their 200 SMA including Aegis Logistics Ltd. (333.70, -2.53%) and Angel One Ltd. (1,313.00, -2.04%).

 
T
Trendlyne Marketwatch
01 Jun 2023
Market closes lower, Axis Direct maintains ‘Buy’ rating on KNR Constructions

Trendlyne Analysis

Nifty 50 closed at 18,487.75 (-46.7, -0.3%) , BSE Sensex closed at 62,428.54 (-193.7, -0.3%) while the broader Nifty 500 closed at 15,760.35 (-6.1, 0.0%). Of the 1,977 stocks traded today, 1,189 showed gains, and 727 showed losses.

Indian indices extended their losses and closed in the red, with the Nifty 50 hovering below the key 18,500 mark. The volatility index, Nifty VIX, dropped below 12 at the close. India’s GDP grew at 6.1% in Q4FY23, surpassing the estimated growth of 5.5%. The overall GDP growth in FY23 stood at 7.2%.

Nifty Smallcap 100 and Nifty Midcap 100 closed in the green, despite the benchmark index closing lower. Nifty Realty and Nifty Healthcare closed sharply higher than Wednesday’s closing levels. According to Trendlyne’s sector dashboard, forest materials emerged as the top-performing sector of the day with a rise of over 1.84%.

Most European indices trade in the green. Data released by the European Commission indicated Euro zone inflation for May at 6.1%, slightly lower than the estimated 6.3%. The inflation in April was at 7.0%. The markets rose, speculating only one 25 bps hike in FY24, instead of the initially expected two hikes.

  • Money flow index (MFI) indicates that stocks like Mahindra Lifespace Developers, Shoppers Stop, Dixon Technologies, eClerx Services and Torrent Pharmaceuticals are in the overbought zone.

  • Jefferies remains bearish on the IT sector as it is cautious about discretionary IT spending. The brokerage expects limited scope of margin expansion for IT companies in FY24.

  • Lupin is rising as its wholly-owned subsidiary, Novel Laboratories receives approval from the US FDA for its abbreviated new drug application (ANDA) for diazepam rectal. The drug is a generic equivalent of Diastat AcuDial rectal delivery system from Bausch Health US. According to IQVIA, it has an estimated annual sales of $34 million in the US in FY23.

  • Containers & packaging stocks like EPL, Mold-Tek Packaging and Uflex are rising in trade. The container & packaging industry is also trading in the green.

  • Amara Raja Batteries rises by over 3% in trade and ranks high on Trendlyne's checklist with a score of 69.6%. It is in the 'Strong Buy' zone and also appears in a screener for stocks with high momentum scores.

  • NMDC's monthly iron ore production rises by 15.9% YoY to 3.71 mt in May. Its overall sales also increase by 36.6% YoY to 3.62 mt, driven by robust growth in sales at the Chattisgarh plant.

  • NCC is rising after announcing the acquisition of orders worth Rs 2,088 crore in May. The firm’s building division has secured orders worth Rs 1,668 crore and the water division received orders amounting to Rs 420 crore. The stock shows up in a screener for companies with book value per share improving over the past two years.

  • Eicher Motor's domestic sales volume increases by 15.8% YoY to 5826 units in May, driven by the heavy-duty (HD) segment. However, the export sales volume falls by 46.9% YoY to 250 units. Overall sales volume registers a growth of 11.6% YoY.

  • Maruti Suzuki's wholesales rise by 10.3% YoY to around 1.8 lakh units in May, led by sales growth in utility vehicles like Brezza, Ertiga and Fronx. Exports during the month decline 2.6% to 26,477 units YoY.

  • Mphasis is rising with the launch of its new business unit, Mphasis AI. The company expects this unit to boost engineering productivity and drive innovation through artificial intelligence.

  • Pidilite Industries, BEML, ICICI Lombard General Insurance Company, Sonata Software and Westlife Foodworld are trading above their third resistance or R3 levels.

  • Axis Direct maintains its ‘Buy’ rating on KNR Constructions and raises the target price to Rs 325 from Rs 310. This implies an upside of 29.7%. The brokerage is confident in the company's ability to capitalise on the increasing infrastructure capex by the Centre, given its focus on diversification, robust execution and healthy order inflow.

  • Mahindra & Mahindra is rising with total auto wholesales up 14% YoY to 61,415 units in May. Domestic passenger vehicle wholesales drive the growth with a 22% YoY increase, fueled by strong demand for utility vehicles. However, the firm’s total commercial vehicle and farm equipment wholesales decline by 16.7% YoY and 4% YoY respectively.

  • Bajaj Auto's total two-wheeler sales rise 23% YoY to 3.3 lakh units in May 2023. Its total domestic wholesales also increase 103% YoY but exports drop 23% YoY.

  • Laurus Labs is rising as it signs a definitive agreement toacquire an additional 7.2% stake in Immunoadoptive Cell Therapy Pvt Ltd (lmmunoACT), an advanced cell and gene therapy company, for a cash consideration of Rs 80 crore. Post the deal, Laurus Lab's stake in ImmunoACT will increase to 33.86%.

  • India's GDP growth rises to 6.1% in Q4FY23, led by robust growth in the services, agriculture, and construction sectors. The GDP for FY23 stands at 7.2%, surpassing the earlier estimate of 7%.

  • Hotels, restaurants & tourism, cement & construction and diversified consumer services sectors rise over 11% in the past month

  • Escorts Kubota is rising as its total monthly tractor wholesales in May increase by 8.9% YoY to 9,167 units, driven by a 13.5% YoY growth in domestic wholesales. However, its exports decline by 38.6% YoY. The stock shows up in a screener for companies with no debt.

  • Sona BLW Precision Forging falling as one of its promoters, Aureus Investment Pvt Ltd, sells a 3.2% stake worth Rs 957 crore through an open market transaction.

  • India’s manufacturing PMI touches a 31-month high of 58.7 in May, compared to 57.2 in April, on the back of strong demand and output.

  • RBL Bank rises by over 5% in trade and ranks high on Trendlyne's checklist with a score of 66.7%. The stock is in the 'Strong Buy' zone based on the number of days spent in the current P/E range. It appears in a screener for stocks with a positive breakout at the third resistance level.

  • Coal India is falling as the Centre initiates a stake sale of up to 3% (18.5 crore equity shares) in the company through the offer for sale (OFS) route. The floor price is set at Rs 225, which is a 7% discount from the closing price yesterday. The government aims to gain Rs 4,162 crore from this stake sale.

  • Indian rupee appreciates 25 paise to 82.47 from the previous close of 82.72 against the US dollar in early trade today.

  • RHI Magnesita, PNB Housing Finance, Crompton Greaves Consumer Electricals and Dixon Technologies witness a significant surge in mutual fund holdings in the past month.

  • Mankind Pharma rises as its net profit increases by 50.1% YoY to Rs 285.4 crore in Q4FY23 on the back of lower raw material and finance expenses. Its revenue rises by 19.4% YoY, driven by robust growth in the chronic and consumer healthcare segments. Its EBITDA margin also improves by 400 bps. It appears in a screener of stocks with low debt.

  • HFCL is rising as its board decides to expand the current capacity of optical fiber manufacturing from 10 million fkm per year to 33.9 million fkm per year at its manufacturing facility in Telangana. The expansion will be completed by December 2024, with an estimated capex of Rs 470 crore.

Riding High:

Largecap and midcap gainers today include Adani Transmission Ltd. (815.50, 5.00%), Adani Total Gas Ltd. (694.35, 4.55%) and Apollo Hospitals Enterprise Ltd. (4,814.25, 4.16%).

Downers:

Largecap and midcap losers today include Coal India Ltd. (230.35, -4.52%), ABB India Ltd. (3,944.65, -4.39%) and Kotak Mahindra Bank Ltd. (1,930.05, -4.18%).

Volume Rockets

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

Top high volume gainers on BSE included EPL Ltd. (199.80, 10.17%), Westlife Foodworld Ltd. (828.50, 7.45%) and Sobha Ltd. (558.25, 7.22%).

Top high volume losers on BSE were Coal India Ltd. (230.35, -4.52%), Vedant Fashions Ltd. (1,265.05, -1.74%) and Ratnamani Metals & Tubes Ltd. (2,300.00, -0.56%).

Aether Industries Ltd. (905.00, 0.44%) was trading at 21.0 times of weekly average. Aarti Drugs Ltd. (454.65, 4.09%) and Tata Teleservices (Maharashtra) Ltd. (63.75, 3.74%) were trading with volumes 10.5 and 6.1 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

31 stocks took off, crossing 52 week highs,

Stocks touching their year highs included - 3M India Ltd. (26,115.70, 3.83%), Bajaj Auto Ltd. (4,643.60, 1.67%) and Birla Corporation Ltd. (1,146.60, 2.27%).

22 stocks climbed above their 200 day SMA including Network 18 Media & Investments Ltd. (65.15, 6.28%) and TV18 Broadcast Ltd. (36.75, 4.70%). 8 stocks slipped below their 200 SMA including Kansai Nerolac Paints Ltd. (430.70, -2.30%) and SBI Life Insurance Company Ltd. (1,207.75, -2.21%).

 
logo
The Baseline
31 May 2023
Despite GDP growth, Indian consumers slow their spending | Consumer stocks outperforming their sectors
By Deeksha Janiani

Does it feel like you are living in an economy with a growth rate of 7% - among the fastest in the world? The answer may depend on who you ask.

RBI Governor Shaktikanta Das would be among those saying, "Yes, totally." Speaking at the recent RBI meet, he noted, “Economic activity saw momentum in Q4, based on our high-frequency indicators. I will not be surprised if India's GDP growth is slightly more than 7%.”

On the other side is a top executive running a consumer-facing business in India. At a CNBC TV18 conference, Anuj Poddar, CEO at Bajaj Electricals, highlighted the challenge of achieving growth for the business, saying, “You don’t know how tough it is to get these growth numbers. For the past 4-6 quarters, we have seen a lack of correlation between GDP growth and actual demand.” 

One reason for this disconnect between the economic numbers and consumer behavior on the ground, according to Poddar, is demand weakness at the median income level.

If we look at the change in people's income between FY16 and FY21, middle-income groups and below have seen a fall. The fruits of India's GDP growth aren't being evenly distributed – the richest have seen the most gains, while the poorest are worse off than before. 

Starting from early 2022, it was the higher-income millennials who were driving discretionary spending. Retailers targeting premium consumers enjoyed the benefits. But that spending frenzy has now normalized– how many designer bags can a person buy, after all – and there's been an overall slowdown in private consumption.

 Analyst house Jefferies notes that consumer demand has been mixed across categories.

So what's going on? We take a closer look in this week’s Analyticks:

  • Is the party over? Retailers, restaurant chains, jewelry companies see demand slowing down in Q4, but hopes are alive
  • Screener: Consumer-oriented companies outperforming their sectors in Q4FY23

Discretionary space sees demand slowdown, but CEOs are hopeful 

According to the Retailers Association of India, retail sales experienced double-digit growth through most of 2022, and until February 2023. However, the growth rate fell to just 6% in March and April due to declines in the beauty and personal care, footwear, apparel, and jewelry segments.  

The decline in discretionary demand started in the second half of FY23 and became more pronounced from February onwards. High inflation was a major factor here, and was especially intense in the value segments, and in tier 2 and 3 cities. These demand-side challenges and higher costs hit the bottom-line growth of retailers and restaurants in Q4. Jewelry makers in comparison, did much better. 

Indian retailers: Revenue growth holds up but profit growth falters

Big and diversified retailers like Reliance Retail (part of Reliance Industries) and D-Mart posted healthy revenue growth in Q4, thanks to a low base in last year’s quarter and store expansions. The store count for these players rose by over 14% YoY in Q4FY23. 

For Reliance Retail, the store area in million sqft terms jumped by over 55% in Q4, indicating that growth in the top line was primarily thanks to aggressive expansions, while same-store sales growth contributed little. 

Among major categories, the grocery segment grew the fastest in Q4, while the fashion and lifestyle segment, which is discretionary by nature, saw softer YoY sales growth of 19%, despite the low base effect. 

Even with strong revenue growth, the net profit growth for big retailers was modest at best. D-mart's margins were impacted by lower contributions from the general merchandise and apparel segment.Meanwhile, Reliance Retail faced profit growth challenges due to higher expenses from rapid expansions. 

Some fashion retailers were badly hit. Aditya Birla Fashion posted a net loss in Q4 owing to lackluster sales growth, higher marketing spends, and the lack of rental rebates (given to retailers by mall owners during Covid). In contrast, Trent clocked a net profit growth of 40% in Q4.

Commenting on the demand trends, Ashish Dikshit, Managing Director at ABFRL, said, “If you recall our earlier conversations, I had said that the lower end of the market was more affected. Now, it looks like a more widespread slowdown.”

Footwear retailers faced a similar challenge of decent sales growth but weaker bottom-line growth. Higher operating costs due to store expansions, marketing expenses, and losses from the newly acquired brand FILA affected the profitability of Metro Brands. 

Looking ahead, premium footwear retailer Metro Brands predicts slow near-term sales growth. The management at ABFRL expects a pick-up in consumer sentiment only during the festive season in the second half of the year. 

Quick service restaurants: Same-store sales growth cracks, profitability dips

Jubilant Foodworks, a major player in the Quick Service Restaurant (QSR) industry, posted muted revenue growth of 8% this Q4, entirely driven by store additions. The like-for-like growth, which represents growth in existing stores, was negative for Domino's. Devyani International also reported negative same-store sales growth for Pizza Hut. 

The profitability of QSR majors suffered deeply due to input cost pressures and negative operating leverage. Negative operating leverage occurs when a company fails to generate enough sales to cover its fixed costs. Quick service restaurants have continued to expand, resulting in higher costs, but sales have not kept up due to weak consumer demand. 

Gems and Jewellery: Some sparkle despite challenges

Titan Company saw strong revenue growth in Q4, aided by a low base effect and healthy buyer growth. The Tanishq brand stores clocked SSSG (same store sales growth) of 19%, supported by the rise in gold prices. However, the management noted a period of dull demand between March and mid-April. 

Kalyan Jewellers also saw decent top-line growth, helped by store additions in non-south markets. But its mainstay market of south India clocked only 4% revenue growth in Q4. 

Jewelry demand picked up during Akshay Tritiya, and remained steady during the wedding season. However, in an interview with Business Today, Ajoy Chawla, CEO of the Jewellery division at Titan, said, “The trend is good. But volatility in demand is high, maybe due to high gold and diamond prices and the reopening of various sectors like travel.”

Demand may take its own sweet time to recover

With retail inflation now declining, consumer-facing companies are anticipating a revival in spending. But the recovery will be a gradual one. Ritesh Tiwari, CFO at Hindustan Unilever, sums this up, “Consumers expect that inflation will be stubborn. This impacts their confidence in spending money, which is why volume growth will be gradual.”

Ashish Goenka, CFO at Jubilant Foodworks, echoes similar sentiments, saying, “This cyclical demand takes 2 to 3 quarters to come back. And I think it's anybody's guess at this moment as to when we will start seeing a full recovery”. 

Overall, the C-Suite expect a resurgence in demand in H2FY24 and rare hopeful that the current challenges are temporary. India's economic recovery, they believe, just needs some time to reach their consumers.

Screener: Consumer companies which outperformed their sectors in a difficult quarter

In this week’s edition, we take a look at consumer discretionary stocks that have performed well despite the sluggish demand trends we discussed above. This screener features stocks that have outperformed their respective sectors in terms of net profit and revenue growth in Q4, as well as price changes in the past quarter.

Major stocks in the screener are Titan, Tata Motors, Trent, Indian Hotels, Godrej Properties, Cera Sanitaryware, BLS International Services and Amber Enterprises. 

Indian Hotels achieved the highest revenue growth of 86.4% YoY for Q4FY23, outperforming the hotels and tourism sector by over 45 percentage points. The company’s revenue per available room of Rs 8,000 was 70% higher than the industry average.  It also outperformed the sector returns by nearly 5 percentage points in the same period.

Trent’s consolidated revenue for Q4FY23 jumped by over 60% YoY, outperforming the retail sector by 39 percentage points. This growth was backed by the stellar growth of the Zudio format. The company also outperformed its sector returns by over 15 percentage points in the past quarter.

Tata Motors’ revenue jumped 35% YoY in Q4FY23, surpassing the growth of the automobile sector by nearly 12 percentage points. It also exceeded the sector’s net profit growth, aided by a strong product mix and comparatively lower product prices. 

You can find some popular screenershere.

Signing off this week,

The Trendlyne Team

 
T
Trendlyne Marketwatch
31 May 2023
Market closes lower, Torrent Pharma is back in black in Q4 with profit of Rs 287 crore

Trendlyne Analysis

Indian markets slumped today. Nifty 50 closed at 18,534.40 (-99.5, -0.5%) , BSE Sensex closed at 62,622.24 (-346.9, -0.6%) while the broader Nifty 500 closed at 15,766.40 (-33.1, -0.2%). Of the 1,961 stocks traded today, 968 were in the positive territory and 934 were negative.

Indian indices extended their losses and closed in the red, with the Nifty 50 hovering above the key 18,500 mark. The volatility index, Nifty VIX, rose above 12 at the close. Indian sugar mills have shipped the entire quota of 6.1 million tonnes allowed for exports owing to higher prices. The quota is valid until September 2023, and the government may not increase the export limits due to the expected production shortage.

Nifty Smallcap 100 and Nifty Midcap 100 closed in the green, despite the benchmark index closing lower. Nifty Energy and Nifty Metal also closed lower than Tuesday’s closing levels. According to Trendlyne’s sector dashboard, telecom services was the top-performing sector of the day, as it rose over 2.2%.

Most European indices trade in the red, except for Switzerland’s SMI, which is trading higher. Data released by the French government indicated that inflation in May stood at 6%, slightly lower than the estimated 6.4%. Also, Italy’s data released today showed inflation at 8.1% in May, surpassing the estimated 7.5%. US indices futures are currently trading lower, indicating a negative start.

  • Relative strength index (RSI) indicates that stocks like Birla Corp, The Ramco Cements, Dixon Technologies (India), CG Power and Industrial Solutions and IDFC are in the overbought zone.

  • A fire breaks out at Oil India's Numaligarh refinery’s hydrocracker unit (HCU) in vessel number VV-04 on May 29, 2023. No casualties have been reported, and damage assessment is still underway. The cause of the fire is yet to be determined by an external investigation committee.

  • Vedanta's parent company, Vedanta Resources, pays off maturing loans and bonds worth $400 million (approximately Rs 330.7 crore) that were due in May and June 2023, according to reports. The company's gross debt now stands at $6.4 billion.

  • Reports suggest that 2.2 crore shares (3.7% equity) of Sona BLW Precision Forgings, amounting to Rs 1,093 crore, change hands in a large trade.

  • Commercial services & supplies, forest materials and cement & construction sectors rise by more than 10% over the past month.

  • Torrent Pharmaceuticals rises with a net profit of Rs 287 crore in Q4FY23, compared to a net loss of Rs 118 crore in Q4FY22. The increase in profit is attributed to lower raw material expenses. Its revenue also rises by 14.3% YoY on the back of robust growth in the international market. It appears in a screener of stocks with improving book value per share for the last two years.

  • ICICI Direct downgrades its rating on eClerx Services to ‘Hold’ from ‘Buy’ with a target price of Rs 1,800. This implies an upside of 12.3%. The brokerage believes the company’s prospects of achieving double-digit growth in FY24 will be challenging given its weak revenue growth in Q4FY23 and lower-than-expected margins.

  • Torrent Pharmaceuticals and Global Health touch their all-time highs of Rs 1,850 and Rs 612.5 per share, respectively. The former has grown 8.8% over the past month, while the latter rose 18.6% in the same period.

  • Lemon Tree Hotels falls despite posting a net profit of Rs 44 crore in Q4FY23, compared to a net loss of Rs 24.6 crore in Q4FY22. Its revenue also grows by 100.3% YoY, driven by strong growth in average room rates (ARR) and occupancy. It appears in a screener of stocks with decreasing promoter pledge.

  • Reports indicate that Ashwani Kumar has been appointed as the MD and CEO of UCO Bank by the Government. Kumar's term will last for three years, starting from June 1, following the completion of Soma Sankara Prasad's tenure.

  • Adani Ports & SEZ’s auditor, Deloitte Haskins & Sells, raises concern over the company’s transactions with three firms claimed to be unrelated parties. As the company refused to undergo an independent external examination to prove that the three parties were unrelated, the auditor cannot ascertain full compliance with local laws. Deloitte claims it can only issue qualified opinions on these accounts.

  • Apollo Hospital rises as its net profit increases by 60.3% YoY to Rs 144.5 crore in Q4FY23 on the back of reduced raw material costs. Its revenue also improves by 20.7% YoY, driven by robust growth in healthcare services and digital health & pharmacy distribution. It appears in a screener of stocks with strong momentum.

  • KRBL falls more than 5% as its net profit declines by 42.6% QoQ to Rs 118 crore in Q4FY23. Revenue reduces by 16.7% QoQ due to a drop in revenue from the agriculture and energy segments. EBITDA margin contracts by 7 percentage points on the back of higher finance costs and a contract termination that resulted in selling the product at a lower realisation.

  • Triveni Engineering'sannual return on equity (RoE) stands at 67.2% in FY23, rises 54.6 percentage points over the past five years.

  • CLSA upgrades Tata Motors' rating to 'Buy' and sets a target price of Rs 624. The upgrade is based on the retail sales growth of JLR in April. The brokerage adds that the company's strong performance in the American and Chinese markets has helped it offset the decline in Europe.

  • Patanjali Foods is falling despite its Q4FY23 consolidated net profit rising 12.5% YoY to Rs 263.7 crore. Its revenue also increases 19.3% YoY on the back of growth in the food and FMCG segments. It appears in a screener for stocks with low debt.

  • Welspun Corp rises as its Q4FY23 revenue surges 102.4% YoY to Rs 4070.1 crore, driven by improved performance in the steel segment. EBITDA margin expands by 6.8 percentage points YoY. However, net profit remains flat at Rs 235.9 crore. The company appears in a screener of stocks with increasing revenue for the past three quarters.

  • Prestige Estates Projects is rising despite its Q4FY23 net profit dropping by 50.1% YoY to Rs 468.4 crore due to a high base last year. In Q4FY22, the company recorded a one-time exceptional gain of Rs 807.9 crore. Its revenue rises 9.6% YoY and EBITDA margin expands by 5.1 percentage points YoY. It shows up in a screener for stocks in the PE Buy zone with high durability scores and rising momentum scores.

  • SEBI proposes additional disclosures from foreign portfolio investors that have over 50% of assets under management (AUM) in one group and AUM of over Rs 25,000 crore in Indian equity. The regulator expressed concerns that the FPI route was being used by company promoters to bypass regulation and manipulate stock prices. This comes amid criticism over the lack of oversight over FPI ownership of Adani Group companies.

  • Graphite India is falling as its Q4FY23 net profit drops by 69.5% YoY to Rs 29 crore. Its revenue also declines by 10.4% YoY, driven by the graphite and carbon segment. It appears in a screener for stocks with low Piotroski scores.

  • Aegis Logistics remains flat despite its net profit rising by 48.7% YoY to Rs 140.9 crore in Q4FY23 on the back of falling inventory and employee expenses. Its revenue grows by 5% YoY, driven by robust growth in the liquid terminal division. Its EBITDA margin also improves by 460 bps YoY. It appears in a screener of stocks with low debt.

  • Reports suggest that 3.6 crore shares (1.7% equity) of HDFC Life Insurance Co change hands in the pre-open.

  • Metal & mining stocks like Vedanta, Jindal Steel & Power, Hindalco Industries, JSW Steel and National Aluminium Co are falling in trade. All constituents of the broader sectoral index BSE Metal are also trading in the red.

  • Suzlon Energy rises as its Q4FY23 net profit improves to Rs 279.9 crore from a net loss of Rs 204.3 crore in Q4FY22, driven by lower inventory and raw material expenses. However, revenue dips by 31.4% YoY due to lower wind turbine generator revenue. It appears in a screener for stocks with improving net cash flow for two years.

  • Adani Ports & Special Economic Zone’s Q4FY23 net profit rises 5.1% YoY to Rs 1,158.9 crore, while its revenue surges by 40% YoY led by robust growth in the ports and SEZ business segment. Impairment of Rs 1,273.4 crore due to Myanmar asset sale impacts Q4 profitability. The stock shows up in a screener for companies with improving cash flows from operations over the past two years.

Riding High:

Largecap and midcap gainers today include Torrent Pharmaceuticals Ltd. (1,835.80, 7.13%), Dixon Technologies (India) Ltd. (3,878.75, 5.33%) and PI Industries Ltd. (3,616.80, 4.17%).

Downers:

Largecap and midcap losers today include Adani Total Gas Ltd. (664.15, -4.86%), Delhivery Ltd. (349.20, -4.51%) and Adani Transmission Ltd. (776.70, -3.43%).

Crowd Puller Stocks

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

Top high volume gainers on BSE included Suzlon Energy Ltd. (11.75, 10.33%), G R Infraprojects Ltd. (1,259.90, 8.81%) and Torrent Pharmaceuticals Ltd. (1,835.80, 7.13%).

Top high volume losers on BSE were KRBL Ltd. (364.70, -9.60%), Campus Activewear Ltd. (304.05, -8.32%) and Adani Total Gas Ltd. (664.15, -4.86%).

AstraZeneca Pharma India Ltd. (3,562.45, 6.54%) was trading at 27.7 times of weekly average. Sona BLW Precision Forgings Ltd. (541.55, 1.59%) and Kotak Mahindra Bank Ltd. (2,014.35, 2.01%) were trading with volumes 24.6 and 18.4 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

37 stocks made 52 week highs,

Stocks touching their year highs included - 3M India Ltd. (25,245.00, 1.72%), AIA Engineering Ltd. (3,064.70, 3.13%) and Aurobindo Pharma Ltd. (658.60, 1.21%).

15 stocks climbed above their 200 day SMA including Eureka Forbes Ltd. (495.60, 9.39%) and G R Infraprojects Ltd. (1,259.90, 8.81%). 14 stocks slipped below their 200 SMA including KRBL Ltd. (364.70, -9.60%) and Century Plyboards (India) Ltd. (555.00, -3.28%).

 
logo
The Baseline
30 May 2023
Five stocks with a 'Buy' consensus from analysts post results
By Suhas Reddy
  1. UNO Minda: KRChoksey upgrades its rating on this auto parts & equipment manufacturer to ‘Buy’ from ‘Accumulate’ with a target price of Rs 680, implying an upside of 21.5%. According to Trendlyne’s Forecaster, the consensus recommendation on the stock is ‘Buy’ from 19 analysts, including 14 that are ‘Strong Buy’, three ‘Buy’ and two ‘Hold’.

    In Q4FY23, the company’s net profit increased by 26.5% YoY to Rs 182.7 crore, while revenue grew by 19.6%. Analyst Abhishek Agarwal is optimistic about the company's long-term growth prospects due to the easing of supply chain shortages and its focus on the electric vehicle (EV) segment. “The company is well set to see sustained revenue growth with a couple of CAPEX plans in line, and by catering to the expected demand from different original equipment manufacturers,” he adds. 

Agarwal expects the firm to benefit from the multi-fold growth expected in the EV segment, particularly in  two-wheelers and three-wheelers. The analyst sees the robust order book of Rs 1,000 crore in the company's EV vertical and the management’s plan to invest an additional Rs 500 crore over five years towards EV as key positives. He expects the firm’s revenue to grow at a CAGR of 25% over FY23-25. 

  1. Route Mobile: HDFC Securities maintains its ‘Buy’ rating on this internet software & services company with a target price of Rs 1,735, implying an upside of 20.2%. According to Trendlyne’s Forecaster, the consensus recommendation on the stock is ‘Buy’ from five analysts, which includes four that are ‘Strong Buy’ and one ‘Hold’. In Q4FY23, the company’s net profit surged by 122.4% YoY to Rs 101.6 crore and revenue jumped by 61.1% YoY. 

Analysts Amit Chandra and Vivek Sethia believe the company posted better than expected revenue growth and margin expansion in a seasonally weak quarter. They note that the decline in billable transactions and new product sales due to seasonality was offset by better realisations, market share gains and new client additions.

The analysts believe the launch of new products like Trusense (used for identity and fraud detection) will aid growth. They also expect the firm to see organic growth of 18% in FY24 “led by strong tailwinds in the domestic termination business and expansion of international operations.” Chandra and Sethia project a CAGR of 18% for revenue during FY23-25.

  1. PI Industries: Axis Direct keeps its ‘Buy’ rating on this agro-chemicals manufacturer with a target price of Rs 3,800, implying an upside of 9.4%. According to Trendlyne’s Forecaster, the consensus recommendation on the stock is ‘Buy’ from 25 analysts, including 14 that are ‘Strong Buy’, five ‘Buy’, four ‘Hold’ and two ‘Strong Sell’. In Q4FY23, the company’s net profit rose 37.3% YoY to Rs 280.6 crore and revenue grew 12.2% YoY. 

Analysts Prathamesh Sawant and Shivani More maintain a positive outlook on the company’s prospects, even though it missed their revenue estimates by 10.8%. They attribute this shortfall to a slowdown in domestic growth due to industry-wide high inventory problems. However, they believe the company’s brand value in the custom synthesis manufacturing (CSM) segment remains strong, and the management has a bright outlook for it. 

The analysts also anticipate improved margins in the traditional portfolio in the coming quarters due to the “introduction of new value-added branded products and acquisitions in the pharmaceuticals space, which will add to inorganic growth in the medium to long term”. They estimate the firm’s net profit to grow at a CAGR of 20.8% over FY23-25. 

  1. Motherson Sumi Wiring India: ICICI Direct keeps its ‘Buy’ call on this auto parts manufacturer with a target price of Rs 70, indicating an upside of 21.4%. According to Trendlyne’s Forecaster, it has a consensus recommendation of ‘Buy’ from 12 analysts, including eight that are ‘Strong Buy’, three ‘Buy’ and one ‘Strong Sell’. In Q4FY23, the company’s profit increased by almost 3x YoY to Rs 138.5 crore, while its revenue grew by 12.4% YoY. 

Analysts Shashank Kanodia and Raghvendra Goyal remain positive due to the company's impressive return ratio (RoCE 42.2%), the growing electrification of vehicles, and the potential for increased content per vehicle in the domestic auto market.

The analysts expect a net sales CAGR of 16.5% in FY24-25 on the back of OEM ramp-up, focus on premiumisation and a greater share in utility vehicles. They believe, “Motherson Sumi Wiring’s asset-light model with expandable capacity, along with operating leverage gains, will push margins.”

  1. Krishna Institute of Medical Sciences (KIMS): Edelweiss maintains a ‘Buy’ call on this healthcare facilities provider with a target price of Rs 1,935. This indicates an upside of 20.6%. According to Trendlyne’s Forecaster, the stock has a consensus recommendation of ‘Buy’ from six analysts, including five that are ‘Strong Buy’ and one ‘Hold’. In Q4FY23, the company reported a net profit growth of 15.6% YoY to Rs 93.3 crore and revenue growth of 52.6% YoY. According to analysts Thakur Ranvir Singh and Harsh Shah, “The YoY growth in revenue was driven by a rise in in-patient volume, out-patient volume and ARPOB.”

The analysts remain positive on KIMS due to its healthy expansion plan, improved occupancy, and higher operating margin, with a focus on operational efficiency. They expect an annual capex of Rs 700–800 crore over the next two-three years, with plans to add 1,600 beds during FY24-25. 

Singh and Shah remain cautious regarding lower occupancy due to the closure of the Karim Nagar facility and assume that the new facilities may have low occupancy during the first year of its operations.

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

(You can find all analyst picks here)

 
T
Trendlyne Marketwatch
30 May 2023
Market closes higher, 3M India's net profit rises 22.3% YoY to Rs 135.7 crore in Q4FY23

Trendlyne Analysis

Nifty 50 closed at 18,633.85 (35.2, 0.2%) , BSE Sensex closed at 62,969.13 (122.8, 0.2%) while the broader Nifty 500 closed at 15,799.45 (27.1, 0.2%). Of the 1,952 stocks traded today, 882 were gainers and 1,016 were losers.

Indian indices rose during the afternoon session and closed in the green, with the Nifty 50 hovering above the key 18,600 mark. The volatility index, Nifty VIX, fell below 13 at the close. A report released by the RBI stated that the Indian economy has bounced back from the Covid pandemic, but the recovery is not yet complete. External factors like slowing global growth, geopolitical tensions and stress in the global financial system is offsetting the domestic growth.

Nifty Smallcap 100 and Nifty Midcap 100 closed in the green, following the benchmark. Nifty Private Bank and Nifty Media closed higher than Monday’s closing levels. According to Trendlyne’s sector dashboard, media was the top-performing sector of the day as it rose over 0.9%.

Most European indices trade in the red except for Germany’s DAX trading lower. US indices futures trade higher indicating a positive start. US indices are set to gain amid the debt ceiling agreement and artificial intelligence optimism for semiconductor manufacturers.

  • Siemens beats ABB India in YoY revenue growth, PE ratio, broker average rating and annual dividend yield in percentage. But it lags in one-year price change, annual RoE in percentage and FII & MF holdings.

  • AIA Engineering and Power Finance Corp reach their all-time highs of Rs 3,033.9 and Rs 181.6 per share. The former rose 9% over the past month while the latter gained 6.9% in the same period.

  • 3M India is rising as its net profit improves by 22.3% YoY to Rs 135.7 crore in Q4FY23. Revenue jumps 13% YoY backed by growth in the safety & industrial, transportation & electronics and healthcare segments. It shows up in a screener of stocks with good quarterly growth in recent results.

  • ISGEC Heavy Engineering touches a new 52-week high today as its Q4FY23 consolidated net profit rises 128.8% YoY to Rs 86.1 crore. Its revenue also increases 28.2% YoY on the back of growth in the refinery segment. It appears in a screener for stocks with strong annual EPS growth.

  • Saloni Wagh, Whole-Time Director at Supriya Lifescience, says the company’s revenue will grow by 20-25% in FY24 and margins will be around 28-30% going forward.

  • NOCIL falls as its net profit dips by 58.9% YoY to Rs 28.32 crore due to increased inventory expenses. Its revenue also decreases by 14.7% YoY on the back of a drop in net sales. It appears in a screener of stocks with high promoter pledges.

  • Roads & highways construction companies like IRB Infrastructure Developers, G R Infraprojects, PNC Infratech and Dilip Buildcon are rising in trade. The broader roads & construction industry is also trading in the green.

  • HDFC Asset Management rises by over 3.5% and ranks high on Trendlyne's checklist with a score of 60.9%. The stock is in the 'Strong Buy' zone based on the number of days spent in the current P/E range. It also appears in a screener for stocks with an MACD crossover above the signal line.

  • Goodyear India falls despite its net profit increasing 93.1% YoY to Rs 33.6 crore in Q4FY23 due to lower raw material consumption and a better sales mix. Its revenue rises by 8.9% YoY, driven by higher volumes and better price realization. It appears in a screener of stocks with zero promoter pledges.

  • Vedanta, Campus Activewear, ITI and NOCIL are trading below their third support or S3 levels.

  • Jefferies maintains its 'Buy' rating on Amber Enterprises with a target price of Rs 3,120. The brokerage believes that the domestic AC industry is poised for multi-year growth, driven by increasing consumer spending and favorable weather conditions.

  • ICICI Direct upgrades its rating on Balkrishna Industries to ‘Buy’ from ‘Hold’ and raises the target price to Rs 2,700 from Rs 2,170. This implies an upside of 19.8%. The brokerage cites the company’s sooner-than-expected margin recovery amid a healthy demand outlook and declining input costs for the upgrade. It expects the firm’s net profit to grow at a CAGR of 31.5% over FY23-25.

  • Adani Transmission is falling as its net profit declines 18% QoQ to Rs 389.4 crore in Q4FY23 due to an increase in deferred tax. Its revenue also drops 5.5% QoQ, caused by reduced revenue in the generation, transmission, and distribution business. It appears in a screener of stocks with low Piotroski scores.

  • According to the RBI's annual report, India's real GDP is expected to grow by 6.5% in FY24, with risks evenly balanced. The report also highlights that India's growth momentum will likely sustain in FY24.

  • Campus Activewear is falling as its Q4FY23 consolidated net profit drops 0.09% YoY to Rs 22.9 crore due to an increase in inventory costs. Its revenue also decreases by 1.3% YoY. It appears in a screener for high-volume, top-loser stocks.

  • Vedanta is falling as its unit, Finsider International, pledges 4.4% of the company’s equity to Glencore International for a facility worth $250 million. Vedanta Resources will operate the facility. The stock shows up in a screener for companies with low Trendlyne durability scores.

  • Rail Vikas Nigam is falling as its Q4FY23 net profit declines 5% YoY to Rs 359.2 crore. Revenue also falls 11.2% YoY to Rs 5,719.8 crore. However, EBITDA margin expands 20 bps YoY to 6.5% on lower operational expenses.

  • Reports suggest that 65.6 lakh shares (1.35% equity) of Macrotech Developers, amounting to Rs 676.1 crore, change hands in a large trade.

  • Sobha surges over 5% as its Q4FY23 net profit expands 242.2% YoY to Rs 48.6 crore. Revenue rises 70.3% YoY on real estate and contractual & manufacturing growth. EBITDA margin contracts 140 bps YoY due to higher land and raw material costs. It features in a screener of stocks where brokers have upgraded their recommendations or target price in the past quarter.

  • NBCC (India) hits a new 52-week high as its Q4FY23 consolidated net profit rises 206.3% YoY to Rs 108.4 crore on lower raw material and finance costs. Its revenue also climbs 13.9% YoY. It features in a screenerfor stocks with consecutive revenue growth over the past 3 quarters.

  • IRCTC falls despite its Q4FY23 net profit rising 30.4% YoY to Rs 278.8 crore due to lower inventory costs. Its revenue also grows 40.1% YoY on the back of robust growth in catering, tourism and state teertha businesses. It appears in a screener of stocks with improving book value per share over the past two years.

  • Kalpataru Power Transmissions is falling as reports suggest that 1.1 crore shares (7.4% equity) of the company, amounting to Rs 546.6 crore, change hands in a large trade.

  • KNR Constructions is rising as its Q4FY23 net profit increases 5.8% YoY to Rs 147.3 crore, while its revenue grows 13% YoY. However, its EBITDA margin contracts by 5.5 percentage points YoY on the back of higher construction costs and spreading & assortment expenses. The stock shows up in a screener for companies with declining cash flows from operations over the past two years.

  • Eureka Forbes rises as its Q4FY23 net profit surges by 346% YoY to Rs 20.6 crore due to reduced net debt and inventory levels. Its revenue and EBITDA margin increases by 36.1% YoY and 510 bps YoY respectively. It appears in a screener of stocks with consecutive profit growth in the past two quarters.

  • Torrent Power is back in the black with a net profit of Rs 449.1 crore in Q4FY23, compared to a loss of Rs 488 crore in Q4FY22. Its revenue surges by 61.3% YoY on the back of robust growth in the licensed and franchised distribution businesses driven by rising electricity demand. The stock shows up in a screener for companies with improving net cash flows over the past two years.

Riding High:

Largecap and midcap gainers today include Aurobindo Pharma Ltd. (650.75, 6.45%), HDFC Asset Management Company Ltd. (1,951.10, 4.13%) and JSW Energy Ltd. (263.00, 4.08%).

Downers:

Largecap and midcap losers today include Vedanta Ltd. (285.60, -4.91%), Adani Total Gas Ltd. (698.05, -4.27%) and Info Edge (India)Ltd. (4,065.25, -3.37%).

Crowd Puller Stocks

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

Top high volume gainers on BSE included Eureka Forbes Ltd. (454.95, 13.44%), Hikal Ltd. (307.80, 8.67%) and Birla Corporation Ltd. (1,092.20, 7.05%).

Top high volume losers on BSE were Campus Activewear Ltd. (331.65, -7.57%), Jubilant Pharmova Ltd. (332.35, -7.29%) and NOCIL Ltd. (214.70, -3.18%).

Kalpataru Power Transmissions Ltd. (520.90, 2.87%) was trading at 28.7 times of weekly average. Krishna Institute of Medical Sciences Ltd. (1,609.00, 0.20%) and Sobha Ltd. (516.05, 1.80%) were trading with volumes 20.7 and 14.7 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

28 stocks hit their 52 week highs,

Stocks touching their year highs included - AIA Engineering Ltd. (2,971.75, 6.52%), Aurobindo Pharma Ltd. (650.75, 6.45%) and Cummins India Ltd. (1,755.35, 0.65%).

19 stocks climbed above their 200 day SMA including Sterling and Wilson Renewable Energy Ltd. (290.85, 4.40%) and Multi Commodity Exchange of India Ltd. (1,447.35, 3.96%). 9 stocks slipped below their 200 SMA including Jubilant Pharmova Ltd. (332.35, -7.29%) and Vedanta Ltd. (285.60, -4.91%).