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

Trendlyne Analysis

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Riding High:

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

Downers:

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

Movers and Shakers

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

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

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

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

BSE 500: highs, lows and moving averages

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

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

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

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

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

Trendlyne Analysis

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Riding High:

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

Downers:

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

Movers and Shakers

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

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

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

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

BSE 500: highs, lows and moving averages

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Trendlyne Analysis

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Riding High:

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

Downers:

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

Movers and Shakers

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

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

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

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

BSE 500: highs, lows and moving averages

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

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

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

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

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

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

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

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

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

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

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

You can find more screeners here.

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

Trendlyne Analysis

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Riding High:

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

Downers:

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

Volume Shockers

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

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

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

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

BSE 500: highs, lows and moving averages

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

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

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

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

 
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The Baseline
18 Apr 2023
Five analyst picks this week
By Abhiraj Panchal
  1. Mahindra CIE Automotive: Axis Direct initiates coverage on this auto parts and equipment manufacturer with a ‘Buy’ call and a target price of Rs 475. This indicates an upside of 29.1%. Analysts Aditya Welekar and Shridhar Kallani believe that the company has outperformed in Indian and European markets. Its sales reported a robust growth of 29% YoY in CY22, driven by the outperformance posted by key customers, increased orders and input cost pass-through to customers. The analysts note that new order wins in India stand at Rs 1,000 crore, and to meet the growing demand, Mahindra CIE is enhancing capacities across all verticals. 

Welekar and Kallani are optimistic about the company, due to the improving outlook of the PV business and negligible debt on the balance sheet. After considering the management’s focus on improving margin trends and the company’s capability to generate strong operating cash flow, the analysts say that “the stock is trading at a reasonable 1-year forward consensus PE multiple of 13x.”

  1. Tata Consultancy Services: ICICI Securities maintains a ‘Buy’ call on this IT consulting and software company with a target price of 3,786, indicating an upside of 21.1%. In Q4FY23, the company’s profit has grown by 5% QoQ to Rs 11,392 crore, while its revenue increased by 2.7% QoQ.  Over the entire FY23, its profit and revenue grew by 9.97% to Rs 42,147 crore and 16.9% respectively. 

Analysts Sumeet Jain and Aditi Patil believe that the company’s Q4 profit was 1.4% below consensus estimates due to lower margins caused by higher onsite manpower costs from subcontractor replacements and additional onsite hiring. 

Jain and Patil say, “We believe TCS remains a defensive play in the current environment where they are gaining market share by aggressively winning cost optimisation deals.” They also expect the company to benefit from a pickup in demand in FY25, as currently-postponed discretionary projects are starting to get executed.

  1. Coal India (CIL): ICICI Direct upgrades this coal company from ‘Hold’ to ‘Buy’ and gives it a target price of Rs 260. This indicates an upside of 12.1%. According to analyst Dewang Sanghavi, Coal India has extensive mining capabilities and possesses advanced technology in open-cast mining.

In March 2023, the company’s production volume increased 4% YoY to 83.5 million tonnes (MT), while the offtake volume grew by 3.4% YoY to 64.2 MT. For FY24, CIL has set a production and offtake target of 780 MT, but  Sanghavi believes that only 610 MT is needed to meet the power sector’s demand, leaving the rest for the non-regulated sector. “This augurs well for CIL’s e-auction volumes for FY24,” says Sanghavi.

Sanghavi also expects CIL’s consolidated top line to grow at a CAGR of 7.9%, and consolidated EBITDA and profit to register a CAGR of 13.5% and 16.4%, respectively.

  1. EPL: Motilal Oswal maintains its ‘Buy’ rating on this containers & packaging company with a target price of Rs 215, indicating an upside of 32.8%. Analysts Sumant Kumar, Meet Jain and Omkar Mangesh Shintre believe that the company has faced many challenges over the past few quarters due to pandemic-induced lockdowns and soaring raw material prices. But with demand recovering and raw material prices falling, they see the company’s plans to expand its business as a key positive. “With the demand recovery visible across geographies, along with the softening in raw material prices and price hikes across regions in recent months, we expect the sequential recovery in margins to continue,” the analysts add. 

Kumar, Jain and Shintre expect the firm’s profits to grow in double digits in the coming quarters, driven by rising customer additions, increasing geographical presence, cross-selling opportunities and focus on sustainability. The analysts expect the company’s net profit to grow at a CAGR of 34% over FY23-25.  

  1. Infosys: Despite a weak result and missed guidance, BoB Capital Markets maintains its ‘Buy’ rating on this IT consulting & software giant with a target price of Rs 1,760. This implies an upside of 39.4%. Analyst Saptarishi Mukherjee maintains his positive outlook on the company’s growth prospects, notwithstanding the lackluster Q4FY23 performance. While the analyst consensus on Infosys has moved to ‘hold’, Mukherjee makes his ‘buy’ case saying that  the firm’s “strength in managing the twin journeys of digital transformation (Cobalt) and cost takeout will drive growth leadership”, despite the management’s cautious outlook on key verticals like banking, financial services and insurance. 

The analyst sees an increase in orders related to cost optimisation projects, digital analytics and automation despite weak global macro-economic weakness as a key positive. 

Mukherjee also believes that the company achieving the guided target of 50,000 recruits for FY23 will benefit it in the long run. He expects the increased focus on fresher hiring to increase Infosys’ bench strength and support the employee pyramid in the long term. The analyst estimates the company’s revenue to grow at a CAGR of 19.2% over FY22-24. 

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

(You can find all analyst picks here)

 
Trendlyne Marketwatch
Trendlyne Marketwatch
18 Apr 2023
Market closes lower, Axis Direct maintains ‘Buy’ rating on HDFC Bank

Trendlyne Analysis

Nifty 50 closed at 17,660.15 (-46.7, -0.3%), BSE Sensex closed at 59,727.01 (-183.7, -0.3%) while the broader Nifty 500 closed at 14,897.00 (-7.3, -0.1%). Of the 1,947 stocks traded today, 983 were on the uptick, and 907 were down.

Indian indices pared their opening gains and closed in the red on a volatile day of trade. The benchmark Nifty 50 index fell over 45 points and closed below the 17,700 mark. Tata Chemicals closed over 5.9% lower after the company cut its soda ash prices by 3-4%.

Nifty Smallcap 100 and Nifty Midcap 100 closed in the green, despite the benchmark index closing in the red. Nifty Media and Nifty Energy closed lower than Monday’s closing levels. Nifty Pharma rose over 1.6% led by heavyweights Divi’s Labs and Cipla.

European indices traded higher, despite major Asian indices closing mixed. investors assessed the global economic growth outlook as China’s GDP growth showed a recovery in Q1CY23. Brent Crude oil futures traded in the green on positive demand outlook from China.

  • Infosys beats Tata Consultancy Services in PE ratio, durability score, FII & MF holdings and broker average rating. But it lags in QoQ revenue and net profit growth, annual RoE & RoCE and one-year dividend yield.

  • Glenmark Pharmaceuticals and Zydus Lifesciences hit their new 52-week highs of Rs 506.8 and Rs 518.5 respectively, with the former rising 14.55% in the past month and the other 8.1%.

  • Electronic components, fertilizers and education industries rise by over 14.8% over the past month.

  • India’s credit card spending rises 15.7% MoM to around Rs 1.4 lakh crore in March 2023, while credit card issuance grows by 15.9% YoY.

  • Axis Direct maintains its ‘Buy’ rating on HDFC Bank with a target price of Rs 1,975, implying an upside of 19.1%. The brokerage believes the bank’s growth momentum will sustain on the back of its distribution network, branch expansion and strong deposit growth. It expects the bank’s net profit to grow at a CAGR of 18.3% over FY23-25.

  • Pharma stocks like Lupin, Biocon, Divi's Laboratories and Aurobindo Pharma are rising in trade. The broader sectoral index Nifty Pharma is also trading in the green.

  • Crisil is falling despite a 19.8% YoY rise in net profit to Rs 145.75 crore in Q4FY23. Its revenue also increases by 20.2% YoY. The stock is trading in the overbought zone, according to the Money Flow Index.

  • Maruti Suzuki India, Syngene International and SBI Life Insurance's weekly average delivery volumes rise ahead of their Q4FY23 results in April.

  • Schaeffler India’s Q4FY23 net profit rises 6% YoY to Rs 219.4 crore. Its revenue also increases 8% YoY, however, revenue from exports falls 3%. The stock ranks high on the Trendlyne Checklist score.

  • Crude oil prices rise as China’s GDP expands 4.5% YoY. Brent crude oil price rises to $85.1 per barrel.

  • HDFC Bank, Infosys and Delta Corp see a QoQ fall in net profit growth after declaring their Q3FY23 results in the past week.

  • Mahindra CIE Automotive, Tata Consumer Products and L&T Technology Services fall 1.2%, 1% and 4.4% respectively over the past week, ahead of their Q4FY23 results in the coming week.

  • Realty stocks like Sobha, Oberoi Realty, Godrej Properties, Indiabulls Real Estate and DLF are rising in trade. The broader sectoral index Nifty Realty is also trading in the green.

  • JP Morgan is positive on the Indian pharma sector and says that India portfolio will likely see the highest price rise during the year. The brokerage adds that easing input and freight costs will help improve margins. Sun Pharmaceuticals and Cipla are its top picks in the space.

  • FIH Mauritius Investments, a subsidiary of Fairfax India Holdings, sells a 1.4% stake (49.9 lakh shares) worth Rs 209.8 crore in 360 One Wam in a bulk deal on Monday.

  • Porinju Veliyath sells a 1% stake in Orient Bell in Q4FY23, reducing his stake to 3.8%. The investor buys a 1.4% stake in Ansal Buildwell during the same period, increasing his stake in the company to 3.4%.

  • OFI Global China Fund, owned by Invesco, sells its entire stake of 5.11% (4.9 crore shares) worth Rs 1,004.3 crore in Zee Entertainment in a bulk deal on Monday. The shares have been picked up by Morgan Stanley Asia Singapore, Goldman Sachs Singapore and Segantii India.

  • Porinju Veliyath sells a 1% stake in Orient Bell in Q4FY23, reducing his stake to 3.8%. The investor buys a 1.4% stake in Ansal Buildwell during the same period, increasing his stake in the company to 3.4%.

  • Varun Beverages is falling as reports suggest that 10.17 lakh shares (0.23% equity) of the company, amounting to Rs 146.4 crore, change hands in a large trade.

  • Vijay Kedia adds a 1.1% stake in Affordable Robotic & Automation during H2FY23. He now holds 13.4%, as against 12.3% in H1FY23.

  • Ashish Kacholia buys a 0.2% stake in Yasho Industries in Q4FY23. He now holds a 4% stake in the company.

  • Tata Chemicals is falling as it cuts soda ash prices by 3-4%. Kotak Institutional Equities says this may have a negative impact on the soda ash market.

  • Shares of Avalon Technologies list at a 1.1% discount to the issue price of Rs 431 on its debut on the bourses. The Rs 865 crore IPO gets bids for 2.34 times the total shares on offer.

  • TV18 Broadcast is trading down as its Q4FY23 net profit falls 76% YoY to Rs 35 crore. Revenue also dips 6% YoY. The stock is trading 63% lower than its 52-week high.

  • Just Dial is rising as its net profit surges 3.7X YoY to Rs 84 crore in Q4FY23. Revenue increases by 40% YoY as user engagement and traffic on the website rise YoY. The stock is trading above its second resistance or R2 level.

  • Angel One is rising as its Q4FY23 net profit increases 30% YoY to Rs 266.9 crore. The company’s revenue has also increased 21% YoY, driven by growth in its total client base. However, the finance and investing activities segment has seen a marginal dip in revenue QoQ. It shows up in a screener of stocks with high TTM EPS growth.

  • Network 18 Media & Investments posts a loss of Rs 36.8 crore in Q4FY23, compared to a net profit of Rs 61.9 crore in Q4FY22. Revenue declines 8.5% YoY due to a weak advertising environment. Rising employee costs, marketing expenses, and other expenses are hitting the firm's profitability, along with declining advertising revenue.

Riding High:

Largecap and midcap gainers today include YES Bank Ltd. (16.65, 8.47%), Lupin Ltd. (698.55, 6.14%) and Bajaj Holdings & Investment Ltd. (6,349.65, 4.14%).

Downers:

Largecap and midcap losers today include Schaeffler India Ltd. (2,942.85, -2.90%), Power Grid Corporation of India Ltd. (230.30, -2.68%) and Varun Beverages Ltd. (1,414.50, -2.59%).

Volume Rockets

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

Top high volume gainers on BSE included YES Bank Ltd. (16.65, 8.47%), Sobha Ltd. (467.10, 7.44%) and Ircon International Ltd. (61.15, 6.44%).

Top high volume losers on BSE were Tata Chemicals Ltd. (932.10, -5.93%), Tata Communications Ltd. (1,212.70, -2.54%) and Kansai Nerolac Paints Ltd. (380.00, -0.03%).

ITI Ltd. (94.70, 3.78%) was trading at 72.4 times of weekly average. Bajaj Holdings & Investment Ltd. (6,349.65, 4.14%) and Just Dial Ltd. (665.95, 2.51%) were trading with volumes 11.5 and 10.6 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

12 stocks overperformed with 52-week highs,

Stocks touching their year highs included - Zydus Lifesciences Ltd. (515.90, 2.75%), Cholamandalam Investment & Finance Company Ltd. (839.60, 0.38%) and Cyient Ltd. (1,108.65, 2.64%).

19 stocks climbed above their 200 day SMA including YES Bank Ltd. (16.65, 8.47%) and Lupin Ltd. (698.55, 6.14%). 15 stocks slipped below their 200 SMA including Tata Chemicals Ltd. (932.10, -5.93%) and Rashtriya Chemicals & Fertilizers Ltd. (102.85, -3.11%).

 
Trendlyne Marketwatch
Trendlyne Marketwatch
17 Apr 2023
Market closes lower, Kotak Securities maintains ‘Sell’ rating on Eicher Motors

Trendlyne Analysis

Nifty 50 closed at 17,706.85 (-121.2, -0.7%), BSE Sensex closed at 59,910.75 (-520.3, -0.9%) while the broader Nifty 500 closed at 14,904.30 (-50.0, -0.3%). Of the 1,979 stocks traded today, 971 were gainers and 955 were losers.

Indian indices extended their losses and closed in the red, with the Nifty 50 hovering over the 17,700 mark. The volatility index, India VIX, rose above 12 at the close. India’s consumer price index data for March was reported at 5.66%, slightly higher than economists’ estimates of 5.63%.

Finance Minister Nirmala Sitharaman suggested that India might buy Russian crude oil over the price cap imposed by the G-7, if crude prices increase following the cut in OPEC+ production. Regarding the sanctions, she said, "I hope the intent is not to hurt economies which have nothing to do with the war.”

Nifty Smallcap 100 and Nifty Midcap 100 closed in the green, despite the benchmark index closing in the red. Nifty Pharma and Nifty Media closed lower than Thursday’s levels. Nifty IT closed sharply lower, led by industry heavyweight Infosys, which missed street expectations and indicated a slowdown for the IT sector in its earnings commentary.

Most European indices trade in the green, except for Switzerland’s SMI trading in the red. US indices futures trade lower as data released by the US Commerce Department shows a 1% dip in retail sales in March, indicating lower spending by US consumers.

  • Relative strength index (RSI) indicates that stocks like Aurobindo Pharma, Bajaj Auto, Dr. Reddy's Laboratories and Anupam Rasayan India are in the overbought zone.

  • Vedanta is rising as reports suggest that it has signed a memorandum of understanding with 20 Korean companies from the display glass industry to develop a manufacturing hub in India. The stock shows up in a screener of stocks with improving RoA for the past two years.

  • BofA Securities downgrades its rating on Cummins India to ‘Underperform’ from ‘Buy’ and lowers the target price to Rs 1,434. The brokerage says price hikes based on the new emission norms will impact the company’s sales. It also expects a slowdown in exports.

  • Monte Carlo Fashions' quarterly sales for Q4FY23 rises 36% YoY, led by sustained high demand. The company’s sales have jumped 101% compared to the pre-covid quarter of Q4FY20. Its yearly sales grow by 22% YoY for FY23. The stock shows up in a screener for companies with high annual EPS growth.

  • Food, beverages & tobacco, health equipment & supplies and general industrials sectors rise more than 5.6% over the past 90 days.

  • Nestle rises 4% in a weak market today, ahead of its dividend payout date on April 21. The stock is trading near its 52-week high.

  • Nestle India, Gujarat Fluorochemicals, Asian Paints and InterGlobe Aviation trade above their second resistance or R2 level.

  • Kotak Securities maintains its ‘Sell’ rating on Eicher Motors with a target price of Rs 2,800. The brokerage says demand recovery for Royal Enfield remains dull and the intensity of competition will pick up soon.

  • Precision Camshafts surges as Vijay Kedia adds it to his portfolio in Q4FY23. He buys a 1.1% stake in the company.

  • Foreign institutional investors invest Rs 4,565.9 crore in the equity market over the past week, according to Trendlyne's FII dashboard. Meanwhile, index futures witness the highest inflow of Rs 6,965.8 crore from foreign investors.

  • Kalyan Jewellers, Campus Activewear and Hitachi Energy India underperform their industry by more than 10% in the past month.

  • ICICI Securities maintains its ‘Buy’ rating on Zomato with a target price of Rs 65, indicating an upside of 20.6%. The brokerage believes the stock is trading at an attractive valuation and remains positive about the firm’s outlook given the sustained improvement in its operating metrics. It expects the company’s revenue to grow at a CAGR of 39.7% over FY22-25.

  • Cyient and ICICI Prudential Life Insurance rise more than 12% in the past month, ahead of their Q4FY23 results on Thursday.

  • Wipro and MphasiS touch 52-week lows of Rs 352 and Rs 1,660.05, respectively. On the other hand, Ingersoll-Rand (India) and Zydus Lifesciences reach 52-week highs of Rs 2,826 and Rs 509.2, respectively.

  • Tech Mahindra trades low after being downgraded to ‘Sell’ from ‘Neutral’ by brokerage firm Citi, which has also reduced the target price to Rs 955 from Rs 1,100. The brokerage believes that there are certain risks to growth in the communications vertical (which accounts for 40% of revenue). The company is set to announce its Q4FY23 results on April 27.

  • India’s WPI inflation eases to the lowest level in 29 months, registering at 1.34% in March, as compared to 3.85% in February. The decline is due to the fall in prices of basic metals, food products, textiles and non-food articles, among others.

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

  • Zee Entertainment Enterprises is falling as reports suggest that 5.48 crore shares (5.7% equity) of the company, amounting to Rs 1,119.7 crore, change hands via a block deal.

  • HCL Technologies, YES Bank and Persistent Systems fall 4.8%, 0.7% and 8.7% respectively over the past week, ahead of their Q4FY23 results in April.

  • Vijay Kedia buys a 0.2% stake in Neuland Laboratories in Q4FY23, bringing his holdings in the company to 1.2%.

  • Sunil Singhania buys a 2.3% stake in Uniparts India in Q4FY23, adding the company to his portfolio.

  • Transformers & Rectifiers (India) is rising as it bags an order of supplying transformers worth Rs 131 crore. Its total order book now stands at Rs 1,822 crore. It shows up in a screener for stocks with improving RoCE for the past two years.

  • Reports suggest that 1.26% equity of Poonawalla Fincorp changes hands in a block deal in pre-open.

  • Brightcom Group falls as the Securities and Exchange Board of India (SEBI) issues a show cause notice to the company saying that it has overstated its net profit for FY19 and FY20 by more than Rs 1,280 crore. SEBI has also asked the company to rectify the wrongly reported shareholding pattern.

  • IT stocks like Tata Consultancy Services, HCL Technologies, Wipro and LTIMindtree are falling in trade. Infosys has declined 11% after reporting a dip in Q4 net profit. Nifty IT is down 6% and all constituents of the broader sectoral index are also trading in the red.

  • Following the IMF and World Bank's estimation that India will be the fastest-growing economy in 2023, Finance Minister Nirmala Sitharaman says that the Indian economy is on track and is likely to grow at 7% in 2023.

  • HDFC Bank's net profit grows 20% YoY to Rs 12,047.8 crore as net interest income rises by 24%. Gross and net NPAs fall by 5 bps YoY to 1.12% and 0.27%, respectively. Motilal Oswal sees a 15% upside in the bank's target price after reporting robust Q4 results.

  • Infosys' Q4FY23 net profit falls 7% QoQ to Rs 6,128 crore, missing Forecaster estimates by 6.6%. Revenue dips 2.3% QoQ across all business segments except retail. However, the company reports an order inflow of $2.1 billion in Q4, bringing the total order book to $9.8 billion in FY23.

Riding High:

Largecap and midcap gainers today include Gujarat Fluorochemicals Ltd. (3,250.00, 4.98%), Union Bank of India (73.00, 4.73%) and Aditya Birla Capital Ltd. (164.65, 4.41%).

Downers:

Largecap and midcap losers today include Infosys Ltd. (1,258.30, -9.42%), LTIMindtree Ltd. (4,332.60, -6.75%) and Tech Mahindra Ltd. (1,029.95, -5.24%).

Volume Shockers

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

Top high volume gainers on BSE included HLE Glasscoat Ltd. (603.55, 15.92%), Punjab & Sind Bank (32.20, 15.83%) and KIOCL Ltd. (206.00, 14.35%).

Top high volume losers on BSE were Infosys Ltd. (1,258.30, -9.42%), LTIMindtree Ltd. (4,332.60, -6.75%) and 360 One Wam Ltd. (403.40, -5.78%).

Chalet Hotels Ltd. (363.10, 0.54%) was trading at 16.3 times of weekly average. Eureka Forbes Ltd. (394.00, 0.78%) and Bombay Burmah Trading Corporation Ltd. (914.30, 4.12%) were trading with volumes 11.3 and 9.4 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

17 stocks hit their 52-week highs, while 3 stocks tanked below their 52-week lows.

Stocks touching their year highs included - Bajaj Auto Ltd. (4,255.00, -0.78%), Zydus Lifesciences Ltd. (502.10, -0.31%) and DLF Ltd. (415.35, 0.53%).

Stocks making new 52 weeks lows included - MphasiS Ltd. (1,736.55, -1.95%) and Wipro Ltd. (361.35, -1.89%).

21 stocks climbed above their 200 day SMA including KIOCL Ltd. (206.00, 14.35%) and Gujarat Ambuja Exports Ltd. (280.70, 5.71%). 10 stocks slipped below their 200 SMA including LTIMindtree Ltd. (4,332.60, -6.75%) and Tech Mahindra Ltd. (1,029.95, -5.24%).

 
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The Baseline
14 Apr 2023
Five Interesting Stocks Today
  1. Vedant Fashions Ltd. Thisspecialty retail firm has risen 40% since it went public in February 2022. According to Trendlynetechnicals, its share price has increased by 9.4% in the past week. Manyavar, as the company is known to its customers, specializes in Indian wedding and celebration wear and operates 640 franchise-owned brand outlets. The market for the celebratory wear segment is highly fragmented and dominated by informal players.  Manyavar’s inventory management through data-driven demand forecasting and tech-enabled supply chain management has led to cost optimization, while franchise-based outlets have helped achieve an ROIC of 58% with minimal capex requirements. The stock has seen a 10% increase in the past week.

Manyavar is nurturing its emerging brands like Mohey, Twamev and Manthan to cater to different segments with varying price points across geographies. Mohey, which caters to women's traditional wear, currently contributes 10% of the total revenues and has the potential to be a game changer for Manyavar. The women’s celebratory clothing market is roughly 5x bigger than the men’s market and is valued at Rs 74,000 crore. Indian customers are also notably less price-sensitive in the wedding and celebratory clothing category. 

Manyavar has generated Rs 1,317 crore in the trailing twelve months, with an operating margin of nearly 50%. The company has a cash surplus of Rs 790 crore on its balance sheets, providing a sufficient cushion for further expansion and brand building.

Motilal Oswal, in its initiating coveragereport, has highlighted Manyavar’s asset-light model and underpenetrated market, which provide an edge. Also, its higher margins and ability to scale different brands make it attractive. The brokerage has estimated profits to grow at 21% CAGR in FY23-25 and initiated a ‘Buy’ rating with a target price of Rs 1,400. 

  1. Anupam Rasayan: This agrochemicals company rose 3.9% and touched its 52-week high of Rs 993.7 on Thursday, after signing an agreement with a Japanese multinational. The letter of intent (LOI) is valued at $182 million (approximately Rs 1,500 crore) and covers the manufacture and supply of three specialty chemicals, which are advanced intermediaries for highly specialized polymers and liquid crystals. The period of the agreement is set for seven years. 

The stock has risen 32.8% over the past month, owing to multiple order wins and capex plans for expansion. This places the company in a screener of stocks that have gained more than 20% over the past month. 

On March 22, the company signed a memorandum of understanding (MoU) with the Gujarat government to establish three plants in Surat and Bharuch, with an estimated capex of Rs 670 crore. The company also signed another letter of intent worth $120 million (approximately Rs 984 crore) for a period of six years with a Japanese chemical company to supply an advanced intermediate as an active ingredient for life science on March 23. 

According to Nirmal Bang, the carry-over of higher cost inventory may subside compared to Q3FY23, while declining input chemical prices and container freight/shipping rates could reduce costs and support production growth. However, the brokerage sees a mixed trend for agrochemical stocks in Q4FY23 and has reduced the stock's target price to Rs 841 citing declining profit margins. 

  1. Bank of Baroda: This banking stock rose 3% in trade on Wednesday after reporting its Q4FY23 provisional data. The bank has seen growth in domestic advances by 17% YoY to Rs 7.9 lakh crore, while deposits rose 15% YoY. Its CASA ratio stands at 36.8% in Q4 and overall business has crossed Rs 21.7 lakh crore. The stock has risen 42.6% in the past year.

Nitin Agrawal, Head of BFSI Research at Motilal Oswal Financial Services, says that Bank of Baroda’s CASA and deposit growth are  better than its peers. He adds that the faster repricing of loans, compared to deposits, may lead to net interest margin (NIM) growth in Q4. However, according to him, Bank of Baroda’s advances growth may slow down in FY24.  Nevertheless, the bank’s CEO and MD, Sanjiv Chadha, says that it aims to grow better than industry standards.

Given the tightening liquidity by RBI, banks are expected to mobilize deposits to meet their credit demand, which bodes well for deposit growth for the bank and the sector in general. According to a report, deposit growth is likely to be around 10%-11% for FY24E. Trendlyne’s Forecaster estimates a 3.6% net profit growth for the bank in Q4FY23.  

Prabhudas Lilladher has given a ‘Buy’ rating on the stock with a target price of Rs 220, given its robust advances and deposit growth. It also expects the bank’s NIMs to improve in Q4. The bank’s main focus is on deposit mobilization aiding in a lower cost of funds, which is likely to support margin growth. 

  1. Eicher Motors: This automobile manufacturer has risen 9.5% over the past week till Thursday on the back of healthy growth in its wholesale volumes. The firm’s monthly wholesales of commercial vehicles in March rose 35.2% YoY to 11,906 units. In FY23, its sales increased 39.5% YoY, led by robust growth in its domestic business operations. However, Royal Enfield’s monthly wholesale volumes for March increased due to a 34% YoY rise in exports. But in FY23, its total wholesales expanded 39% YoY, led by growth in domestic wholesales (41% YoY). 

Despite reports of Macquarie downgrading its rating on Eicher Motors to ‘Neutral’, citing a weak earnings outlook on the back of lower volumes and margins, the stock continued its uptrend on Wednesday. On the other hand, Goldman Sachs initiated coverage on the stock with a ‘Buy’ rating, believing that the company faces the least amount of risk from electric vehicle disruption in the coming five years. It expects margins to expand due to an improving product mix for the international market. It also sees sales volumes in the domestic market rising due to the low sensitivity of its 250cc+ motorcycles to high-interest rates. 

Although different brokerages have divergent views on the company’s growth outlook, the street’s consensus remains largely positive. According to Trendlyne’s Forecaster, the consensus recommendation from 37 analysts on the company is a ‘Buy’. 

Going forward, the company’s management plans to increase its domestic sales by expanding into tier-3 and smaller markets. It also plans to ramp up exports by expanding its international presence and product portfolio. 

  1. Titan Company: This textiles, apparels & accessories company rose around 1.4% on Monday after reporting healthy growth across its key businesses. Titan has risen 10.9% in the past month and is currently trading near its 52-week high.  In Q4FY23, the company’s revenue grew by 25% YoY with help from its watches & wearables and emerging business categories. 

The watches & wearables segment expanded by 41% YoY, while emerging businesses, including fragrances & fashion accessories (F&FA) and Indian dress wear (Taneira), grew by 31% YoY. The company’s Managing Director C K Venkatraman expects Taneira, women’s bags, and the fine fragrances divisions to contribute significantly to its revenue in the next five years.

Despite gold prices rising significantly in 2023, Titan’s jewellery segment, which accounts for the majority of its revenue,  clocked a 23% YoY growth during the quarter. The segment’s strong performance was driven by growth in the new and existing customer base, high ticket sizes and a recovery in wedding sales. Titan has seen margin expansion to the tune of 60 bps in 9MFY23 on account of a better product mix. Also, the diversification of its  brand portfolio is helping margins improve with value-added products. 

ICICI Securities believes that the jewellery segment will likely outperform the consumer discretionary segment in the medium term. However, the pressure on gross margins will remain on account of increasing gold prices. Despite this, the brokerage has maintained a ‘Buy’ rating on the stock.

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