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Trendlyne Marketwatch
Trendlyne Marketwatch
28 Feb 2023, 03:45PM
Market closes lower, metal stocks are falling

Trendlyne Analysis

Nifty 50 closed at 17,303.95 (-88.8, -0.5%), BSE Sensex closed at 58,962.12 (-326.2, -0.6%) while the broader Nifty 500 closed at 14,518.75 (-30.0, -0.2%). Of the 1,947 stocks traded today, 979 were in the positive territory and 911 were negative.

Indian indices closed in the red for an eighth consecutive trading session. The Nifty 50 fell below its 200-day simple moving average and closed just above the 17,300 mark. Vedanta extended its losses by 6.7% today after the Centre cancelled a proposal to sell its Africa-based zinc business to Hindustan Zinc for $2.98 billion over valuations concerns.

Nifty Smallcap 100 and Nifty Midcap 100 closed in the green, despite the benchmark index closing lower. Nifty Media and Nifty PSU Bank closed higher than Monday’s levels. Nifty IT closed in the red, despite the tech-heavy Nasdaq 100 closing in the green on Monday.

European indices traded lower after higher-than-expected inflation data from Spain and France. Elevated inflation may prompt the European Central Bank to further raise interest rates, which could impact already slowing economic growth. Major Asian indices closed mixed while the US indices futures traded marginally lower.

  • Relative strength index (RSI) indicates that stocks like Equitas Small Finance Bank, ZF Commercial Vehicle Control Systems India, Symphony and Sanofi India are in the overbought zone.

  • Uflex rises in a volatile market as the Income Tax Department completes raids at various locations of the company. The raid, which started on February 21, concluded on Monday, as declared in the clarification to NSE by the company.

  • Commercial services & supplies, utilities, and hardware technology & equipment sectors fall more than 18% over the past 90 days.

  • According to JP Morgan, market conditions are favourable for the real estate sector but the risk due to slowdown in the US persists. The brokerage says only DLF fits into the metrics of pre-sales growth and positive earnings.

  • HPL Electric and Power is surging as it bags an order worth Rs 409 crore for a smart meter pipeline project in west India, taking its order book to more than Rs 1,200 crore in February. The company features in a screener of stocks with strong cash-generating ability from core business.

  • Metals and mining stocks like Vedanta, Hindalco Industries, APL Apollo Tubes, Coal India and Tata Steel are falling in trade. The broader sectoral index BSE Metal is also trading in the red.

  • Vedanta, a high-volume loser stock in trade today, falls 12% in the past week after the Centre cancelled a proposal to sell its Africa-based zinc business to Hindustan Zinc for $2.98 billion over valuations concerns. The stock is trading below its second support or S2 level.

  • Media stocks like Zee Entertainment Enterprises, New Delhi Television, Nazara Technologies and Network 18 Media & Investments are rising in trade. The broader sectoral index Nifty Media is also trading in the green.

  • JSW Energy gains over 8% in trade today and ranks high in the Trendlyne checklist score. The stock shows up in a screener for companies with improving cash flow and high durability.

  • One97 Communications (Paytm) is down more than 8% in trade and ranks medium on the Trendlyne checklist score. The consensus recommendation for February has 9 analysts suggesting ‘Buy’ and 2 ‘Hold’.

  • Reports suggest that 76.9 lakh shares (0.1% equity) of Power Grid Corp of India, amounting to Rs 169.2 crore, change hands in a large trade.

  • Chola Wealth Direct maintains its ‘Buy’ rating on Muthoot Finance with a target price of Rs 1,350. This indicates an upside of 40.6%. The brokerage expects the company to regain its lost market share in FY24 and see a double-digit growth rate by Q2FY24. It anticipates the firm’s net profit to grow at a CAGR of 6.4% over CY22-24.

  • Zee Entertainment Enterprises is surging as the NSE removes the stock from the Insolvency and Bankruptcy Code (IBC) framework, reverting the surveillance actions on the company. It also reincludes the stock in its futures and options contracts with expiry in May 2023.

  • B Thiagarajan, Managing Director of Blue Star, says dealers have ample stock prepared as summer has begun. He expects 30% YoY growth for the company in this season.

  • Spicejet is falling as it announces that Carlyle Aviation Partners will acquire a 7.5% stake in the airline to help reduce its debt by $100 million.

  • Indian rupee appreciates to 82.68 from the previous close of 82.84 against the US dollar in early trade today.

  • Bharat Electronics, Kajaria Ceramics and Tech Mahindra outperform the Nifty 50 index over the month post their Q3FY23 results.

  • NHPC is rising as the Cabinet Committee on Economic Affairs approves Rs 1,600 crore for pre-investment activities and various clearances for Dibang Multipurpose Project, which is being developed by the company in Arunachal Pradesh. The company shows up in a screener for stocks with consistently high returns over the past five years.

  • Mastek is rising as it announces a strategic partnership with Netail to bring in AI-led retail software solutions for e-commerce and omnichannel retailers. This alliance will help both companies understand consumer behaviour and user experience, and have real-time market visibility. Mastek ranks high on the Trendlyne checklist score.

  • Dr. Reddy’s Labs signs an agreement to acquire the US generic prescription product portfolio of Mayne Pharma Group, an Australia-based firm, for $105 million (Rs 861 crore). The value of the addressable market in the US is approximately $3.6 billion for CY22, according to IQVIA.

  • Laxmi Organic Industries’ CEO & executive director Satej Nabar resigns from his posts, effective from April 2. Ravi Goenka steps down as managing director and will be redesignated as the chairman on April 3. Rajan Venkatesh will replace them as the CEO and MD for a tenure of five years.

Riding High:

Largecap and midcap gainers today include Adani Enterprises Ltd. (1,363.85, 14.27%), JSW Energy Ltd. (234.65, 12.68%) and Zee Entertainment Enterprises Ltd. (195.60, 6.91%).

Downers:

Largecap and midcap losers today include Vedanta Ltd. (268.35, -6.61%), One97 Communications Ltd. (597.25, -5.96%) and Adani Total Gas Ltd. (678.55, -5.00%).

Volume Shockers

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

Top high volume gainers on BSE included Adani Enterprises Ltd. (1,363.85, 14.27%), JSW Energy Ltd. (234.65, 12.68%) and Elgi Equipments Ltd. (462.00, 7.65%).

Top high volume losers on BSE were Vedanta Ltd. (268.35, -6.61%), Adani Total Gas Ltd. (678.55, -5.00%) and Adani Transmission Ltd. (642.90, -4.99%).

CG Power and Industrial Solutions Ltd. (305.25, -1.82%) was trading at 22.8 times of weekly average. Biocon Ltd. (229.15, -0.20%) and HCL Technologies Ltd. (1,077.60, -0.59%) were trading with volumes 14.7 and 11.3 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

3 stocks made 52-week highs, while 26 stocks were underachievers and hit their52-week lows.

Stocks touching their year highs included - Supreme Industries Ltd. (2,761.35, 0.76%), Triveni Turbine Ltd. (317.55, 5.62%) and Equitas Small Finance Bank Ltd. (71.50, 2.95%).

Stocks making new 52 weeks lows included - Adani Transmission Ltd. (642.90, -4.99%) and Bayer Cropscience Ltd. (4,279.95, -2.59%).

20 stocks climbed above their 200 day SMA including Elgi Equipments Ltd. (462.00, 7.65%) and YES Bank Ltd. (17.45, 6.40%). 33 stocks slipped below their 200 SMA including Vedanta Ltd. (268.35, -6.61%) and One97 Communications Ltd. (597.25, -5.96%).

 
Trendlyne Marketwatch
Trendlyne Marketwatch
27 Feb 2023
Market closes lower, Citi maintains its ‘Sell’ rating on Mphasis

Trendlyne Analysis

Nifty 50closed at 17,392.70 (-73.1, -0.4%), BSE Sensexclosed at 59,288.35 (-175.6, -0.3%) while the broader Nifty 500closed at 14,548.70 (-81.8, -0.6%). Of the 1,977 stocks traded today, 414 were on the uptick, and 1,525 were down.

Indian indices recoup losses made in morning session and still closed in the red for a seventh straight trading session. Nifty 50 fell over 60 points and closed just above 17,400 mark. Spicejet converts Rs 245 crore of debt from Carlyle Aviation Partners into equity. It also further plans to raise Rs 2,550 crore via qualified institutional placement.

Nifty Midcap 100 and Nifty Smallcap 100 closed in the red, following the benchmark index. Nifty Media closed deep in the red, led by Zee Entertainment Enterprise Limited. All other major sectoral indices closed lower except for Nifty Bank and Nifty Realty closing in the green.

European stocks trade higher as investors shrug off inflation and interest rate concerns. However, most major Asian indices closed lower, tailing US indices futures. Brent crude oil futures are trading lower waiting for signs of increased consumption from China.

  • Money flow index (MFI) indicates that stocks like Linde India, Finolex Cables, Zensar Technologies and PB Fintech are in the overbought zone.

  • Angel One and Rossari Biotech hit their 52-week lows of Rs 1,029.5 and Rs 639.9 respectively. Angel One falls for three consecutive sessions, while Rossari Biotech trades lower for two sessions.

  • Life Insurance Corp of India touches an all-time low of Rs 566, falling for the past six trading sessions. It shows up in a screener with declining net profit and margin QoQ. However, the stock has a high Trendlyne durability score.

  • Macrotech Developers rises over 10% in a weak market. The stock ranks high on the Trendlyne checklist score. The consensus recommendation for February shows 11 analysts recommending ‘Buy’, three maintaining ‘Hold’ and 1 ‘Sell’.

  • Bharat Electronics, Tata Consumer Products and Ambuja Cements trade below their second support or S2 level in a weak market.

  • Adani Group stocks decline as reports suggest that it is in talks with global credit funds to raise up to $400 million in debt against a key coal port, Carmichael mine. It contributes a large portion of the conglomerate's Australian fossil fuel exports.

  • Spicejet’s board approves the transfer of its cargo business to SpiceXpress & Logistics on a slump sale basis for Rs 2,557 crore. Also, it approves the conversion of liabilities worth Rs 244.6 crore with Carlyle Aviation Partners into equity and proposes to raise capital worth Rs 2,500 crore through qualified institutional placement.

  • Citi maintains its ‘Sell’ rating on Mphasis with a target price of Rs 1,705. The brokerage expects softness in the company’s mortgage business to continue in Q4. It says the overall growth could improve from Q1FY24.

  • Vedanta, Canara Bank and Manappuram Finance underperform their sector over the past month.

  • Axis Direct maintains its ‘Buy’ rating on Varun Beverages and raises the target price to Rs 1,500 from Rs 1,450. This implies an upside of 16.1%. The brokerage believes the company’s growth will be driven by the surge in sales and market share during summer. It expects the firm’s net profit to grow at a CAGR of 51.8% over CY21-24.

  • One97 Communications (Paytm) is rising as reports suggest that Sunil Mittal, Chairperson of Bharti Airtel, may buy a stake in the company and merge Airtel Payments Bank with Paytm Payments Bank. Meanwhile, Ant Group may cut its stake in Paytm to keep its holding within the required threshold, reports add.

  • IT stocks like Mphasis, Coforge, L&T Technology Services and LTIMindtree are falling in trade. The broader sectoral indices Nifty IT, BSE IT and BSE Tech are also trading in the red.

  • Abhijit Roy, Managing Director and CEO of Berger Paints, says Q4FY23 volume and value growth will be in the double digits as demand improves. He adds that the company’s market share will exceed 20% in FY24.

  • Granules India receives US FDA approval for losartan potassium tablets used to treat hypertension in adults and pediatric patients. The current annual US market for losartan potassium tablets is approx $336 million.

  • Bajaj Auto falls as reports suggest that it plans to cut down export production by nearly 25% in motorcycle and three-wheeler segments due to the looming uncertainties in Nigeria, one of its biggest export markets. Its capacity utilization may fall below 50% across its export-focused plants.

  • Media stocks like Zee Entertainment Enterprises, New Delhi Television, PVR and Dish TV India are falling in trade. The broader sectoral index Nifty Media is also trading in the red.

  • According to Goldman Sachs, there is moderate growth in Q3FY23 revenue but margins have recovered. Results are slightly below estimates. The brokerage expects Nifty to reach 20,500 levels by the end of CY23.

  • IRB Infrastructure Developers wins a project worth Rs 2,132 crore from the National Highways Authority of India for the upgradation of NH-27 from Samakhiyali to Santalpur to six-lane with paved shoulder.

  • Dr. Reddy's Labs, TVS Motor Co and Indus Towers outperform the Nifty 50 index over the month post their Q3FY23 results.

  • Power Grid Corp’s committee of directors approves four projects to set up transmission systems, relieve high loading and implement expansion schemes in the western and north eastern regions. The projects are estimated to cost around Rs 804 crore. It shows up in a screener of stocks with improving RoCE for the past two years.

  • NBCC bags the work of a project management consultant for designing, constructing and maintaining buildings of Motilal Nehru National Institute of Technology, Allahabad. The cost of the project is Rs 350 crore.

Riding High:

Largecap and midcap gainers today include Macrotech Developers Ltd. (807.75, 12.25%), Tube Investments of India Ltd. (2,660.50, 4.29%) and Bank of Baroda (159.00, 2.85%).

Downers:

Largecap and midcap losers today include Adani Enterprises Ltd. (1,193.50, -9.28%), MphasiS Ltd. (2,039.85, -7.19%) and Zee Entertainment Enterprises Ltd. (182.95, -6.44%).

Volume Rockets

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

Top high volume gainers on BSE included Macrotech Developers Ltd. (807.75, 12.25%), RHI Magnesita India Ltd. (664.40, 7.76%) and Chemplast Sanmar Ltd. (408.35, 6.65%).

Top high volume losers on BSE were Uflex Ltd. (353.65, -17.42%), MphasiS Ltd. (2,039.85, -7.19%) and PNC Infratech Ltd. (281.85, -4.12%).

Affle (India) Ltd. (978.80, -1.15%) was trading at 6.4 times of weekly average. Sanofi India Ltd. (5,864.25, 5.41%) and Hitachi Energy India Ltd. (3,244.95, -0.89%) were trading with volumes 5.2 and 5.2 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

36 stocks tanked below their 52-week lows.

Stocks making new 52 weeks lows included - ACC Ltd. (1,694.80, -2.03%) and Adani Transmission Ltd. (676.70, -5.00%).

10 stocks climbed above their 200 day SMA including RHI Magnesita India Ltd. (664.40, 7.76%) and ICICI Bank Ltd. (856.40, 1.99%). 40 stocks slipped below their 200 SMA including MphasiS Ltd. (2,039.85, -7.19%) and Bajaj Auto Ltd. (3,639.85, -5.46%).

 
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The Baseline
24 Feb 2023
Five Interesting Stocks Today
  1. Samvardhana Motherson International: This auto parts & equipment company’s share price has been on an uptrend since Monday, after its step-down subsidiary signed an agreement to acquire a 100% stake in SAS Autosystemtechnik at an enterprise value of 540 million euros (Rs 4,790 crore). As a result of the share price rise, the company features in a screener of stocks trading above their short-, medium- and long-term moving averages.

Based in Germany, SAS is a leading provider of cockpit module assemblies for cars. This acquisition will help Samvardhana improve integration in the automotive supply chain, increase customer proximity and diversify its products. Europe is a key market for Motherson, accounting for 60% of its revenues.

Vivek Chaand Sehgal, Chairman of Samvardhana Motherson International, said that the acquisition will help in diversifying the customer base and products. It will transform Motherson Group into a leading assembler of cockpit modules globally, with a special focus on EV models.

Analysts believe that the acquisition is in line with Samvardhana's strategy to expand its product line and enhance its footprint in the European market. ICICI Securities maintains its ‘Buy’ rating on the stock post the acquisition announcement. The brokerage believes the acquisition will help the company improve its logistical practices and, in turn, save costs and add new business opportunities.

  1. Bharat Dynamics: The Aero India event has helped this defence company takeoff. It has risen 22.2% over the past week on the back of multiple memorandum of understanding (MoU) contracts from Indian as well as foreign companies at Aero India 2023. It also won an export order worth $255 million (approximately Rs 2,108 crore) on Monday. This order will be added to the company’s already strong order book of Rs 11,906 crore as of November 2022. The company features in a screener of stocks near their 52-week highs with significant volumes.

However, the share price had previously fallen around 10% in five trading sessions starting February 7 after it announced Q3FY23 results. Its net profit declined 60.7% YoY to Rs 213.3 crore in Q3FY23 and revenue also fell 42.6% YoY to Rs 461.6 crore. Talking about the result, the management said, “Supply of certain electronic components was delayed due to the Russia-Ukraine conflict, and this impacted the performance during the period. The company is exploring alternatives to mitigate the impact.” 

ICICI Securities remains bullish on the stock and maintains its ‘Add’ rating with a revised target price of Rs 955, despite slower-than-expected order inflows during 9MFY23. The broker believes that the company is likely to benefit from several defence procurement opportunities in the pipeline.

The company has also launched several new products at Aero India 2023. It ranks high on Trendlyne’s checklist with a score of 56.5%, while the broker consensus on the stock is ‘Buy’.

  1. United Breweries: This breweries and distilleries stock has fallen 1.5% in the past week. On the technical front, the stock is trading down 7.7% over a month, 13% lower in the past 3 months and 5% lower over the year. It shows up in a screener of weak momentum stocks where the price is below short-, medium- and long-term averages.

United Breweries faced two major incidents this week. Its Managing Director & CEO Rishi Pardal resigned on February 17 (the announcement came in after market hours), causing the stock to fall 2% in trade on Monday. But the stock held its ground during the second incident: The Supreme Court (SC) stayed a penalty order from the National Company Law Appellate Tribunal (NCLAT) and the Competition Commission of India in an alleged beer cartel case against the company. However, the SC has directed the company to pay a 10% additional penalty over and above the 10% paid to NCLAT. The total fine slapped on the company is around Rs 873 crore.

Its Q3FY23 results have not been encouraging either. It reported a net loss of Rs 2 crore on lower sales volumes, especially in Tamil Nadu and Andhra Pradesh, triggering an impairment review by the company. It reported an exceptional loss of Rs 33 crore on its profit and loss statement, which is the amount of impairment of property, plant and equipment. The management, in its earnings call, says that they are not planning a restructuring in these states yet, but will improve sales volumes in the coming quarters. High raw material costs (up 22% YoY) and an increase in excise duty have also led to rising expenses eating into earnings.

The stock shows up in a screener of stocks with declining revenue for the past two quarters. However, Trendlyne’s consensus recommendation of February shows that 10 analysts recommend a ‘Buy’, 2 ‘Hold’ and 1 ‘Sell’.

  1. Zee Entertainment Enterprises Limited (ZEEL): This media stock slumped on Thursday and made news for its continued financial woes. It tanked 14% in the past two trading sessions after National Company Law Tribunal (NCLT) admitted IndusInd Bank’s insolvency plea against ZEEL.

In December 2021, Sony and ZEEL had signed a deal to merge their television networks, programme libraries, digital assets, and operations. But IndusInd Bank, Axis Bank and IDBI Bank opposed the ZEEL-Culver Max Entertainment (Sony) merger citing non-payment of dues. In line with that, IndusInd filed an application with NCLT seeking payment of Rs 89 crore against the loan default. Once the NCLT proceedings are initiated, the firm cannot go ahead with its merger.

ZEEL is also the guarantor for a Rs 150-crore loan given by IndusInd Bank to Siti Networks. Siti Networks is another Subhash Chandra-owned ESSEL Group company. NCLT has initiated insolvency proceedings against Siti Networks as well. The alternative solution for ZEEL is to repay the dues or file an appeal against the plea.  

ZEEL MD & CEO Punit Goenka says they will “take all measures to protect shareholder interests and ensure the timely completion of the deal”. On Friday, it was reported that ZEEL has challenged the Mumbai NCLT order and successfully received a stay order from National Company Law Appellate Tribunal (NCLAT) till March 29.

  1. Sonata Software: This IT consulting & software company rose 5.3% in trade on Thursday after announcing the acquisition of Quant Systems, a US-based software company. This comes while the company is in the midst of an uptrend since announcing its Q3FY23 results on January 24. Its net profit has risen 4.4% QoQ to Rs 117.7 crore and revenue surged 51.1% QoQ. Over the past month, the firm has gained 24.1% till Thursday and shows up in a screener for stocks trading above their short, medium and long-term moving averages.

    The acquisition of Quant Systems is set to be the largest in the company’s history. Sonata Software has agreed to buy a 100% stake in the US-based company for an upfront cash consideration of $65 million and deferred achievement-based payouts up to $95 million, payable over two years. The management believes this deal will accelerate growth and scale while strengthening the company’s capabilities in a wide range of services. Samir Dhir, CEO and Managing Director of the company, believes that the acquisition will contribute 16.7% to the consolidated revenue, according to reports. This acquisition will also add two large clients to the company’s top five client list.

    The management plans to accelerate growth by doubling its IT services revenue in the next four years by focusing on winning large deals. The company is looking to enhance its presence in the banking, financial services and insurance (BFSI) and healthcare verticals to accelerate its growth trajectory. According to Trendlyne’s Forecaster, the consensus recommendation on the company is a ‘Buy’.

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

 
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The Baseline
24 Feb 2023
Chart of the week: India’s foreign exchange reserves under pressure?
By Abdullah Shah

India’s foreign exchange reserves declined for two consecutive weeks in February 2023, after rising for three straight months from November 2022 to January 2023. The week ending February 10, 2023 witnessed the sharpest fall in weekly reserves since April 2022. The reserves plunged by $8.4 billion. 

The Adani-Hindenburg saga caused a massive sell-off in the Indian equity market, and foreign institutional investors sold Rs 10,068.3 crore over the past 30 days. At the same time, the Indian rupee took a hit as the US Federal Bank raised interest rates by a further 25 bps on February 1, 2023. The Reserve Bank of India (RBI) has been selling US dollars to put a floor under  the rupee’s depreciation. This was the major reason for the decline in the foreign exchange reserves. 

Despite the decline in reserves, data shows that India is still at double the reserve levels in 2013, when the RBI had gone on a dollar selling spree as the US Fed slowed its pace of bond buybacks.

How is India doing relative to other emerging markets? For comparison, we can look at some economies in the world which are facing tough challenges for economic growth. Pakistan’s foreign exchange reserves has suffered a drastic decline of 61.4% since February 2022 and stands at a meagre $8.7 billion as of January 2023. The country had already secured a $6 billion bail-out from the International Monetary Fund (IMF) in 2019 followed by another infusion of $1 billion in 2022. It has a total foreign debt of $126 billion which includes loans from China, the World Bank and the Asian Development Bank.

Another neighbour, Sri Lanka declared bankruptcy in July 2022 with a possibility of having to default on its sovereign debt repayment. The country’s foreign exchange reserve stands at just $1.9 billion as of December 2022, down 19.6% since January 2022 with loans from the IMF, China, India and Japan. 

On the other side of the world, Turkey has seen its foreign exchange reserves fall to $75.6 billion in February 2023, its lowest level since July 2022. But it is still 21.9% higher than its multi-month low in August 2022. 

Despite the drop, India still has a comfortable reserves cushion, although the impact of the trade deficit and appreciating dollar in the coming months will have to be closely monitored. At its current level of $566.9 billion, India’s foreign exchange is estimated to cover for 9.2 months of imports projected for FY23.

 
Trendlyne Marketwatch
Trendlyne Marketwatch
24 Feb 2023
Market closes lower, NCLAT stays insolvency proceedings against Zee Entertainment

Trendlyne Analysis

Nifty 50 closed at 17,465.80 (-45.5, -0.3%), BSE Sensex closed at 59,463.93 (-141.9, -0.2%) while the broader Nifty 500 closed at 14,630.45 (-36.3, -0.3%). Of the 1,956 stocks traded today, 788 were in the positive territory and 1,106 were negative. 

Indian indices extended their losses and closed in the red for a sixth straight trading session. Nifty 50 fell over 475 points and closed 2.7% lower this week. GR Infraprojects closed 1.2% higher today after winning a Rs 758.1 crore order from the National Highways Logistics Management.

Nifty Midcap 100 and Nifty Smallcap 100 closed in the red, following the benchmark index. Nifty Metal closed deep in the red, led by Hindalco Industries and National Aluminium Company. However, Nifty Energy and Nifty Infra closed higher than Thursday’s levels.

European stocks traded higher as data showed that UK’s consumer confidence rebounded in February. However, most major Asian indices closed lower, tailing US indices futures. Brent crude oil futures are set to post weekly losses as traders assessed the impact of high inflation and slowing economic growth on crude oil demand.

  • Relative strength index (RSI) indicates that stocks like Equitas Small Finance Bank, Zensar Technologies, ZF Commercial Vehicle Control Systems India and Finolex Cables are in the overbought zone.

  • Maruti Suzuki hikes the price of Ignis across all models in the Delhi region. New prices are effective from today. The stock shows up in a screener with improving profits for the past two quarters.

  • Tiger Global Investments Fund and Internet Fund III, a venture capital fund managed by Tiger Global, sell two crore shares (a 2.8% stake) in Delhivery through open market sales between June 2022 and February 2023.

  • Max Financial Services falls 17.4% over the past month. The stock sees mutual fund holdings drop by 1.8% during the same period.

  • Macrotech Developers falls more than 7% to hit its 52-week low of Rs 741 today. The company is one of the high-volume top losers and shows up in a screener for stocks that have fallen more than 20% in over a month. The firm ranks medium on Trendlyne’s checklist with a score of 42.9%

  • Zee Entertainment rises as the National Company Law Appellate Tribunal (NCLAT) stays insolvency proceedings against it. The company had pointed out that the insolvency resolution would cause issues for its merger with Sony. NCLAT has asked IndusInd Bank to file a reply within two weeks.

  • GR Infraprojects rises after securing a Rs 758.1 crore order from the National Highways Logistics Management to develop, operate and maintain a Multi-Modal Logistics Park in Indore. The duration of the contract is 45 years, including two years of construction period.

  • Commercial services & supplies, hardware technology & equipment and realty sectors fall more than 6% over the past week.

  • ICICI Securities downgrades its rating on Cera Sanitaryware to ‘Add’ from ‘Buy’ with a target price of Rs 6,746. This indicates an upside of 9.4%. The brokerage believes the stock is trading at an expensive valuation, but its strong brand presence, focus on expanding its presence and increased advertising spending will drive growth.

  • Crude oil prices rise as reports suggest that Russia may cut 25% of oil exports from its western ports in March. Copper prices fall due to concerns of rate hikes.

  • Strides Pharma Science's flagship facility in Bangalore receives US FDA's establishment inspection report (EIR). The regulator had issued form 483 with three observations after an inspection in December 2022 and classified the outcome as voluntary action indicated (VAI) based on the company's response.

  • Foreign institutional investors invest Rs 692.5 crore in the equity market over the past week, according to Trendlyne's FII dashboard. Meanwhile, index options witness the highest inflow of Rs 38,703.9 crore from foreign investors.

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

  • Tarun Sawhney, Vice-Chairman and Managing Director of Triveni Engineering & Industries, says the company plans to divert 12% of its sugar to ethanol and more than double its revenue from the ethanol business.

  • KFIN Technologies decides to invest in Fintech Products and Solutions India, an arm of FinSec AA Solutions. After this investment, KFin Technologies will own 25.6% of the post-issue equity share capital.

  • Olectra Greentech is rising after unveiling a hydrogen bus it developed with Reliance, its technology partner. The company plans to commercially launch the buses within a year. The stock shows up in a screener for companies with strong annual EPS growth.

  • Reports suggest that 12 crore shares (24.1% equity) of Redington change hands in early trade today.

  • Radico Khaitan and Aster DM Healthcare outperform the Nifty 50 index over the week post their Q3FY23 results.

  • Alkem Labs rises after submitting a detailed corrective action report to the US FDA for an observation pointed out by the regulator in its inspection report. The inspection is now closed and the stock has a Trendlyne durability score of 65.

  • Rail Vikas Nigam receives a letter of award for the supply, installation and commissioning of new cable lines in the Bhopal region. The project from MP Madhya Kshetra Vidyut Vitaran is worth Rs 196.8 crore.

  • Mahindra Lifespace Developers’ CEO and Managing Director Arvind Subramanian resigns from his post to pursue his interests outside the company. His resignation will take effect from May 22, 2023. Amit Kumar Sinha will replace him for five years from May 23.

Riding High:

Largecap and midcap gainers today include PB Fintech Ltd. (576.80, 10.59%), GAIL (India) Ltd. (103.45, 5.51%) and Whirlpool of India Ltd. (1,321.00, 4.05%).

Downers:

Largecap and midcap losers today include Macrotech Developers Ltd. (719.60, -10.70%), Adani Green Energy Ltd. (486.50, -5.00%) and Adani Total Gas Ltd. (751.80, -5.00%).

Volume Shockers

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

Top high volume gainers on BSE included Mahindra CIE Automotive Ltd. (448.60, 15.75%), Indiabulls Real Estate Ltd. (59.50, 12.37%) and PB Fintech Ltd. (576.80, 10.59%).

Top high volume losers on BSE were Macrotech Developers Ltd. (719.60, -10.70%), Mahindra Lifespace Developers Ltd. (370.00, -2.35%) and Endurance Technologies Ltd. (1,300.40, -1.41%).

KSB Ltd. (1,889.60, 1.85%) was trading at 24.4 times of weekly average. Sanofi India Ltd. (5,563.15, 3.82%) and Sundram Fasteners Ltd. (977.05, -1.36%) were trading with volumes 15.5 and 10.6 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

4 stocks hit their 52-week highs, while 19 stocks hit their 52-week lows.

Stocks touching their year highs included - Cyient Ltd. (965.00, -1.38%), Finolex Cables Ltd. (720.75, 0.96%) and Jindal Stainless (Hisar) Ltd. (486.00, -0.59%).

Stocks making new 52 weeks lows included - Adani Transmission Ltd. (712.30, -4.99%) and Biocon Ltd. (226.30, 2.86%).

13 stocks climbed above their 200 day SMA including Hitachi Energy India Ltd. (3,315.00, 4.36%) and Orient Electric Ltd. (274.45, 1.52%). 20 stocks slipped below their 200 SMA including CESC Ltd. (72.20, -6.84%) and Hindalco Industries Ltd. (415.25, -4.86%).

 
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The Baseline
23 Feb 2023
Screener of the week: IT stocks that beat analyst estimates for revenue and net profit in Q3FY23
By Abdullah Shah

This week’s screener features stocks from the software & services sector which beat Trendlyne’s forecaster estimates for both revenue and net profit in Q3FY23. Major stocks in the screener are KPIT Technologies, Cyient, Tata Elxsi, Infosys and HCL Technologies.

Cyient’s Q3FY23 revenue beat analyst forecaster estimates by 1.8%, while net profit overtook the estimates by 10.3%. The company’s revenue and net profit have grown by 15.9% and 97.2% QoQ respectively. This rise was helped by growth in its overseas business and an 83% QoQ increase in the company’s order intake. 

Tata Elxsi also beat the forecaster estimates in revenue and net profit by 1.3% and 10.2% respectively in Q3FY23. Its revenue has risen 28.7% on the back of growth in embedded product design (EPD), industrial design and visualization (IDV) and transportation segments. The company saw an increase in orders from the US and European markets.

You can find more screeners here.

 
Trendlyne Marketwatch
Trendlyne Marketwatch
23 Feb 2023
Market closes lower, HDFC Sec keeps its ‘Buy’ rating on Prestige Estates Projects

Trendlyne Analysis

Nifty 50 closed at 17,511.25 (-43.1, -0.3%), BSE Sensex closed at 59,605.80 (-139.2, -0.2%) while the broader Nifty 500 closed at 14,666.75 (-35.2, -0.2%). Of the 1,946 stocks traded today, 844 showed gains, and 1,027 showed losses.

Indian indices closed lower, with the volatility index, India VIX, rising above 15. The Nifty 50 fell over 40 points and landed just above the 17,500 mark.

Sonata Software acquired North America-based Quant Systems for USD 65 million. An additional USD 95 million will be paid in the next two years based on the performance of the firm. NSE gets approval from SEBI to set up Social Stock Exchange as a separate segment on its platform.

Nifty Smallcap 100 and Nifty Midcap 100 closed in the red, following the benchmark index. Nifty Metal and Nifty FMCG closed in the green, led by large-cap stocks. All other major sectoral indices closed lower than Wednesday’s levels. Nifty Media fell the most while losing over 1.65%.

European markets trade in the green except for England’s FTSE 100 and Switzerland’s SMI trading in the red. Eurozone’s January CPI numbers are due to be released later today. US indices futures trade flat as investors look ahead to the release of US GDP numbers. US GDP is expected to remain flat or decline slightly after two successive quarters of growth.

  • Persistent Systems beats Coforge in YoY & QoQ revenue growth, YoY profit growth, quarter price change and MF holdings. But it lags in QoQ net profit growth, broker average rating, FII holdings and PE ratio.

  • Ashok Leyland, Bandhan Bank and South Indian Bank have the highest forward annual EPS growth according to analyst estimates.

  • Food, beverages & tobacco, metals & mining and fertilizers sectors rise more than 15% in the past six months. But retailing, media and chemicals & petrochemicals fall more than 10% in the same period.

  • Nissan Joseph, CEO of Metro Brands, says there is an increase in unit sales of products per consumer. He adds that the company has opened 46 new stores in Q3, taking the store additions in FY23 to 96.

  • Sandur Manganese & Iron Ores surges more than 10% as it receives approval from the Central Empowered Committee (CEC) to expand its manganese ore production to 5.8 lakh tonnes from 2.9 lakh tonnes. The company is awaiting consent for operation from the Karnataka State Pollution Board and the Monitoring Committee before commencing operations in FY24.

  • Metals & mining stocks like Hindalco Industries, Coal India, Hindustan Zinc, Tata Steel and Jindal Steel & Power are rising in trade. All constituents of the broader sectoral index BSE metal are also trading in the green.

  • Hitachi Energy India, Mastek, Route Mobile and Radico Khaitan are trading above their second resistance or R2 level.

  • Crisil's Q3FY23 net profits fall 6.3% YoY but rises 6.9% QoQ. It shows up in a screener where MFs have increased their shareholdings in the past quarter.

  • Reports suggest that 5.76 lakh shares (0.21% equity) of Godrej Properties, amounting to Rs 62.84 crore, change hands in large trade.

  • RateGain Travel Technologies is rising as it partners with HotelKey, a cloud-based property management platform for hotels, to integrate its global distribution, central reservations, and pricing capabilities into HotelKey’s PMS platform. RateGain has a medium rank in Trendlyne's checklist with a score of 44.4%.

  • HDFC Securities maintains its ‘Buy’ rating on Prestige Estates Projects with a target price of Rs 630, indicating an upside of 56.5%. The brokerage is positive about the company’s prospects on the back of a ramp-up in launches and rental income. It expects the firm’s net profit to grow at a CAGR of 45.3% over FY23-25.

  • Sonata Software is up more than 4% as its wholly owned subsidiary Sonata Software North America acquires Quant Systems, a Texas-based IT company, for $65 million in an all-cash deal. An additional $95 million will be paid over two years on achievement-based earnings. Sonata Software hit a 52-week high in the past week.

  • The Finance Ministry’s January Economic Review states that India’s exports could slow down in 2023. It adds that there is a downtrend in the total inflation even though January CPI inflation is at 6.5%.

  • Deep Industries is rising as it bags an order worth $12.9 million (Rs 106 crore) from Oil & Natural Gas Corp (ONGC). It involves providing mobile drilling rigs for ONGC’s Ahmedabad asset for three years. The stock shows up in a screener for companies with improving RoE over the past two years.

  • Media stocks like Zee Entertainment Enterprises, TV18 Broadcast and PVR are falling in trade. The broader Nifty Media index declines more than 2.5%.

  • Zee Entertainment Enterprises is plunging as the National Company Law Tribunal (NCLT) admits the company under the corporate insolvency resolution process. The move comes after IndusInd Bank filed a petition against Zee.

  • Rajendra V Gogri, Chairman and Managing Director of Aarti Industries, says the demand for dyes and intermediates has been slow in Q3FY23. He adds that the discretionary segment contributes 50% of the company’s revenues and expects the demand to normalise in the upcoming quarters.

  • Tata Steel is rising after it acquires 4.6 crore shares in Neelanchal Ispat Nigam (NINL) for Rs 300 crore in the first phase of the transaction. Tata Steel now holds a 5.23% stake in NINL and shows up in a screener of stocks with improving RoCE for the past two years.

  • HG Infra Engineering wins an order worth Rs 535.2 crore from Rail Vikas Nigam for the construction of foundations, substructure and superstructure along with river training/protection work, earthwork and allied works for viaduct in Bilaspur of Himachal Pradesh.

  • Internet Fund III sells a 1.7% stake (1.2 crore shares) in Delhivery for Rs 414.2 crore in a bulk deal on Wednesday.

  • Mahindra CIE Automotive’s Q4CY22 net profit surges 2.5X YoY to Rs 194.8 crore on exceptional gains. Revenue increases 35% YoY with contributions from Europe and India markets. However, the company is still battling high material costs which have risen 45% YoY. It shows up in a screener of stocks trading near 52-week high with high weekly volumes.

Riding High:

Largecap and midcap gainers today include Indus Towers Ltd. (173.00, 4.59%), Zomato Ltd. (54.95, 3.78%) and Delhivery Ltd. (345.70, 2.92%).

Downers:

Largecap and midcap losers today include Macrotech Developers Ltd. (805.85, -5.08%), Adani Total Gas Ltd. (791.35, -5.00%) and Adani Green Energy Ltd. (512.10, -5.00%).

Volume Shockers

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

Top high volume gainers on BSE included Shipping Corporation of India Ltd. (126.50, 9.95%), Finolex Cables Ltd. (713.90, 7.92%) and Raymond Ltd. (1,318.45, 7.42%).

Top high volume losers on BSE were Zee Entertainment Enterprises Ltd. (198.65, -3.73%), Lakshmi Machine Works Ltd. (10,850.35, -2.41%) and Cholamandalam Financial Holdings Ltd. (571.35, -2.35%).

3M India Ltd. (22,097.00, 1.32%) was trading at 15.6 times of weekly average. Prism Johnson Ltd. (108.05, 5.93%) and Mas Financial Services Ltd. (845.75, 4.92%) were trading with volumes 12.3 and 7.9 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

5 stocks hit their 52-week highs, while 24 stocks were underachievers and hit their 52-week lows.

Stocks touching their year highs included - Blue Star Ltd. (1,422.00, -2.03%), Cyient Ltd. (978.55, 0.49%) and Finolex Cables Ltd. (713.90, 7.92%).

Stocks making new 52 weeks lows included - Adani Transmission Ltd. (749.75, -5.00%) and Biocon Ltd. (220.00, -1.01%).

11 stocks climbed above their 200 day SMA including Shipping Corporation of India Ltd. (126.50, 9.95%) and Infibeam Avenues Ltd. (16.65, 8.47%). 19 stocks slipped below their 200 SMA including Rashtriya Chemicals & Fertilizers Ltd. (102.10, -2.95%) and Orient Electric Ltd. (268.90, -2.22%).

 
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The Baseline
22 Feb 2023
Which stocks did superstar investors sell in Q3FY23?
By Suhas Reddy

Superstar investors make portfolio changes every quarter, which give us insights into which stocks they are bullish and bearish on. Earlier, we looked at the companies in which superstars bought stakes in Q3FY23. Here, we look at their key sells.  

Rakesh Jhunjhunwala’s portfolio takes holdings below 1% in three companies

Rakesh Jhunjhunwala's portfolio, currently managed by the Rare Enterprises team, sold stakes in 11 companies in Q3FY23. The investment firm reduced stakes to below 1% in Orient Cement, Man Infraconstruction and Anant Raj from 1.2%, 1.2% and 3.1% respectively. 

Over the past year till February 21, the cement & construction firms, Orient Cement and Man Infraconstruction, have fallen by 22% each. The realty firm Anant Raj’s share price rose 60.5%.

The big bull’s portfolio reduced its stake in Dishman Carbogen Amcis by 1.6% to 1.6%. It also cut a 0.4% stake in Titan Co, bringing the holding to 5.2%, and pared stakes in Fortis Healthcare and Star Health & Allied Insurance Co by 0.2% and 0.1% to 4.5% and 17.3% respectively. 

It also sold minor stakes in Metro Brands, Nazara Technologies, Aptech and Indian Hotels Co in Q3FY23. 

Sunil Singhania makes minor changes to portfolio in terms of stake sell

Sunil Singhania’s Abakkus Fund sold a 0.5% stake in industrial machinery company The Anup Engineering in Q3FY23. Its stake in the company is now at 4.2%. The fund also cut a 0.2% stake in Jindal Stainless (Hisar), taking the stake to 3.7%. The stainless steel producer’s net profit fell 32.9% YoY to Rs 344.3 crore in Q3FY23. 

The marquee investor cut a 0.1% stake in Route Mobile (internet software and services company) and Hindware Home Innovation (consumer durables manufacturer). The fund now holds 2.6% and 4.9% in these companies respectively. Hindware Home Innovation reported a YoY fall of 78.3% in its net profit during the quarter. 

Abakkus Fund also cut a minor stake in IIFL Securities and HIL; it now holds 3.2% and 3.1% respectively.

Ashish Kacholia takes his holdings below 1% in two companies 

Ashish Kacholia sold his stake in Rainbow Children’s Medicare (healthcare facilities company) and SG Finserve (financial services provider) to below 1% during Q3FY23. These companies were added to his portfolio in Q2FY23 when he bought 1% and 1.1% stakes in them respectively. 

Like Singhania, Kacholia also pared his stake in Hindware Home Innovation by 1.3% during the quarter. He now holds a 1.3% stake in the company. The ace investor also sold a 1.2% stake in D-Link (India), an IT company, bringing his stake down to 2.1%. During the quarter, D-Link’s profit increased almost three-fold YoY to Rs 27.3 crore. 

Dolly Khanna bearish in Q3FY23, reduces holdings in 18 companies

Dolly Khanna was on a selling spree in Q3, and pared her stakes in 18 companies. This seems to be a response to the volatility in markets - this investor tends to sell quickly in flat and bearish markets. The ace investor trimmed her stakes to below 1% in seven companies–Aries Agro, J Kumar Infraprojects, Manali Petrochemicals, NCL Industries, Polyplex Corp, Sharda Cropchem and Zuari Industries.

Of the 18 companies the investor cut her stakes in, three were from the cement & construction sector, three from the chemicals & petrochemicals sector, and two each from the fertilizers, automobiles & auto components, commercial services & supplies and textiles sectors.  She also reduced her holdings in one firm each from the realty, FMCG, oil & gas and metals & mining sectors.

She sold a 0.6% stake in cement manufacturer KCP, bringing her holding down to 2.4% in Q3. She pared her stake in Chennai Petroleum Corp by 0.4% to 2.2%, Pondy Oxides & Chemicals by 0.3% to 3.1% and Rama Phosphates by 0.2% to 1.5%. 

Khanna also reduced her holdings in Nitin Spinners, Mangalore Chemicals & Fertilizers, Ajanta Soya, Tinna Rubber & Infrastructure and Deepak Spinners by 0.1% each to 1.4%, 1.2%, 1.5%, 1.6% and 1.2% respectively. She sold minor stakes in Talbros Automotive Components and Control Print as well. 

Vijay Kedia cuts stake in FMCG company Lykis to below 1% 

After reducing his stake in Lykis to 2.7% from 9.3% in Q2FY23, Vijay Kediatook it to below 1% in Q3. Lykis’ share price has surged by 48.1% since the beginning of Q4FY23. In Q3, Kedia cut his stake in Cera Sanitaryware (furnishing products company) also to below 1%, as against the 1% held in Q2FY23. 

Kedia slashed his stake in Talbros Automotive Components to 1.3% from 2.3% held in the previous quarter. He reduced his stake in Tejas Networks (telecom company) to 2.3% by cutting 0.3% and in Ramco Systems (IT consultant) to 1.4% by cutting 0.2%. He sold a minor stake in Repro India also and now holds a 7.1% stake in the company. 

Porinju Veliyath takes stakes below 1% in three companies

Porinju Veliyath reduced his stakes in a total of  four companies in Q3FY23. Among them, three firms were taken to below 1%, namely heavy electrical equipment company HPL Electric Power (from 1.3%), retailing company Praxis Home Retail (from 1.1%) and logistics firm Gati (from 1%). Praxis and Gati have fallen by 64.4% and 20.7% respectively over the past year till February 21. On the other hand, HPL Electric gained 31.6% in the same time period. 

The ace investor also sold a 0.5% stake in Kerala Ayurveda, bringing down his stake in the pharmaceutical company to 1.9%. 

Anil Kumar Goel cuts stakes in small-cap and micro-cap companies

Anil Kumar Geol & Associatesreduced stakes in three companies in Q3FY23. The investor took his stake below 1% in construction & engineering firm Salasar Techno Engineering. Over the past year till February 21, the stock has gained 73.8% but shed 10.2% in the past month. 

Goel reduced his stake in TCPL Packaging, a paper & paper products company, by 0.3% to 10.2%. He also reduced his stake by 0.1% to 2.2% in Austin Engineering Co, a micro-cap industrial machinery firm. 

 
Trendlyne Marketwatch
Trendlyne Marketwatch
22 Feb 2023
Market closes lower, metal and realty stocks trade in red

Trendlyne Analysis

Nifty 50 closed at 17,554.30 (-272.4, -1.5%), BSE Sensex closed at 59,744.98 (-927.7, -1.5%) while the broader Nifty 500 closed at 14,701.90 (-212.1, -1.4%). Of the 1,950 stocks traded today, 381 were gainers and 1,524 were losers.

Indian indices closed sharply lower, with the volatility index, India VIX, rising by 11.3%. The Nifty 50 fell over 270 points and closed below the 17,600 mark. Morgan Stanley kept its ‘Overweight’ stance on the Indian energy sector, as energy companies increase their production. Oil and Natural Gas Corp & Oil India were the brokerage's top picks. However, Nifty Energy closed in the red, led by Reliance Industries and NTPC.

Nifty Smallcap 100 and Nifty Midcap 100 closed in the red, following the benchmark index. All major sectoral indices closed lower than Tuesday’s levels. Nifty Metal and Nifty Media fell the most with both indices losing over 2%.

European markets traded in the red, taking cues from the Asian indices, which closed lower. US indices futures traded flat as investors look ahead to the release of the minutes from the US Fed meeting. Brent crude oil futures extended losses from Tuesday and traded lower as analysts expect the Fed to maintain its hawkish stance, given the elevated inflation level in January.

  • Relative strength index (RSI) indicates that stocks like Zensar Technologies, Symphony, Finolex Cables and Sonata Software are in the overbought zone.

  • CRISIL upgrades DB Power’s long-term rating to A+ and AA- after Adani Power called off the acquisition. The rating upgrade comes on the back of strong operating performance, prepayment of debt and better liquidity.

  • KEC Internationaland Tejas Networks have Trendlyne momentum scores of 63.1 and 62.5 respectively. However, they classify under the momentum trap category with high valuation and low durability scores.

  • Container Corp of India falls in trade as 17.67 lakh shares (0.30% equity) amounting to Rs 103.89 crore change hands, according to reports.

  • ICICI Bank, State Bank of India and Bajaj Finance underperform their industry in the past 90 days.

  • Metal stocks like Adani Enterprises, JSW Steel, Steel Authority of India, Jindal Steel & Power and Hindustan Copper are falling in trade. The broader sectoral index Nifty Metal is also trading in the red.

  • Reports suggest that 5.02 lakh shares (0.43% equity) of JK Lakshmi Cement, amounting to Rs 34.35, crore change hands in a large trade.

  • IRB Infrastructure Developers is rising as it turns ex-date for its 1:10 stock split. The company has also emerged as the preferred bidder for a Rs 2,132 crore project to upgrade NH-27 into six lanes from Samakhiyali to Santalpur. The company's order book will stand at Rs 20,892 crore upon receiving the project.

  • Foreign institutional investors pull out Rs 9,598.2 crore in the equity market over the past 30 days, according to Trendlyne's FII dashboard. Meanwhile, index options witness the highest inflow of Rs 67,810.1 crore from foreign investors. Mutual funds take out Rs 3,054.2 crore from the market.

  • ICICI Direct downgrades its rating on Minda Corp to ‘Hold’ from ‘Buy’ and lowers the target price to Rs 230 from Rs 270. This implies an upside of 18.4% from the current market price. Although the brokerage is optimistic about the firm’s ability to outperform the industry, the recommendation has been revised due to a lack of clarity on the company’s investment in Pricol.

  • Morgan Stanley has an ‘Overweight’ stance on the Indian energy sector, as energy companies increase their production. Upstream producers Oil and Natural Gas Corp & Oil India are the brokerage's top picks.

  • Consumer electronics stocks like Johnson Controls-Hitachi Air Conditioning India, Voltas, Blue Star and IFB Industries trade in the green in a weak market as Indian Meteorological Department issues the first heat wave alert for 2023. Sales volumes of these companies are likely to increase as the summer approaches. Analysts expect better revenue and EBITDA margin growth as well.

  • Realty stocks like Godrej Properties, DLF, Macrotech Developers and Oberoi Realty are falling in trade. The broader sectoral indices Nifty Realty and BSE Realty are also trading in the red.

  • Jefferies rates a ‘Buy’ on Prestige Estates Projects with a target price upside of 30% at Rs 550. The brokerage believes the company has expanded decently in a challenging market. The management, however, says that further capex will mostly be debt-funded, which may increase debt levels.

  • Patel Engineering wins projects worth Rs 1,026 crore from City and Industrial Development Corp and Visvesvaraya Jala Nigam for the design and construction of a water tunnel project and a micro irrigation system respectively.

  • HM Bangur, Managing Director of Shree Cements, says cement prices will be flat in Q4 compared to Q3FY23, but expects a rise during the peak season. He adds that the company’s volumes will grow 10% in Q4.

  • Siemens, Eicher Motors and Bosch outperform the Nifty 50 index over the week post their Q3FY23 results.

  • Delhivery falls in early trade as 1.22 crore shares (1.7% equity) amounting to Rs 410 crore change hands, according to reports.

  • ITI appoints Rajesh Rai as Chairman and Managing Director of the company for a period of five years with effect from Tuesday.

  • Bharat Electronics (BEL) signs an MoU with the Aeronautical Development Agency (ADA), DRDO, for the Advanced Medium Combat Aircraft (AMCA) programme. BEL and ADA will work together for the design, development and supply, and provide product support to the Indian Air Force. It shows up in a screener of stocks with improving RoE over the past two years.

  • Mahindra & Mahindra inks a pact to transfer assets worth Rs 230 crore pertaining to four-wheel passenger electric vehicles to its subsidiary Mahindra Electric Automobile (MEAL). The transfer is expected to be completed by June 2026. The company and British Investment International will invest Rs 1,925 crore each in MEAL in two or more tranches.

Riding High:

Largecap and midcap gainers today include PB Fintech Ltd. (516.40, 3.67%), Aurobindo Pharma Ltd. (470.25, 2.23%) and Voltas Ltd. (914.20, 2.05%).

Downers:

Largecap and midcap losers today include Adani Enterprises Ltd. (1,404.85, -10.58%), Adani Ports & Special Economic Zone Ltd. (547.10, -6.19%) and Adani Wilmar Ltd. (390.30, -5.00%).

Movers and Shakers

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

Top high volume gainers on BSE included IRB Infrastructure Developers Ltd. (34.05, 14.49%), Thermax Ltd. (2,127.25, 6.36%) and Johnson Controls-Hitachi Air Conditioning India Ltd. (1,253.00, 4.67%).

Top high volume losers on BSE were Tata Teleservices (Maharashtra) Ltd. (57.30, -4.02%), V-Guard Industries Ltd. (241.20, -3.85%) and Delhivery Ltd. (335.90, -3.73%).

ITI Ltd. (99.25, 2.16%) was trading at 51.3 times of weekly average. IFB Industries Ltd. (850.95, 2.17%) and Wockhardt Ltd. (196.35, 1.84%) were trading with volumes 15.2 and 9.4 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

7 stocks overperformed with 52-week highs, while 22 stocks tanked below their 52-week lows.

Stocks touching their year highs included - Blue Star Ltd. (1,451.45, 2.66%), Cera Sanitaryware Ltd. (6,716.65, 2.24%) and Cyient Ltd. (973.80, 2.20%).

Stocks making new 52 weeks lows included - Adani Transmission Ltd. (789.20, -5.00%) and Bata India Ltd. (1,424.90, 0.86%).

8 stocks climbed above their 200 day SMA including Thermax Ltd. (2,127.25, 6.36%) and PB Fintech Ltd. (516.40, 3.67%). 20 stocks slipped below their 200 SMA including Just Dial Ltd. (590.55, -5.29%) and Torrent Power Ltd. (495.90, -4.26%).

 
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The Baseline
21 Feb 2023
Five High Performing Analyst Picks This Week
By Abhiraj Panchal

This week, we take a look at analyst stock picks which saw positive YoY profit and revenue growth in Q3FY23, with strong Trendlyne Durability, Valuation and Momentum scores.

  1. Oil India: Prabhudas Lilladher keeps its ‘Buy’ rating on this oil exploration & production company, and raises the target price to Rs 305 from Rs 300. This implies an upside of 19.8%. In Q3FY23, the company’s net profit surged by 76% YoY to Rs 2,284.4 crore and revenue grew by 37.7% YoY. Oil India has a high DVM score, with a Durability score of 85, Valuation score of 84.3 and Momentum score of 67.3. 

Analyst Avishek Datta attributes the firm’s robust Q3 performance to healthy crude oil and gas realisations, along with increasing demand. He adds that the company’s Numaligarh refinery has had a steady performance. 

Datta sees the company’s aggressive production expansion plans as a key positive, and expects oil volumes to increase by 30% and gas volumes to surge by 60% by FY25. The analyst believes, “Oil India’s earnings will ride on new capacity addition across crude oil, natural gas and refinery”. He expects the company’s net profit to grow at a CAGR of 15.7% over FY22-25. 

  1. Zydus Lifesciences: KRChoksey maintains its ‘Buy’ rating on this pharmaceuticals company and increases its target price to Rs 610 from Rs 507. This indicates an upside of 30.1%. In Q3FY23, the company’s net profit rose by 24.5% YoY to Rs 622.9 crore and revenue increased by 19.4% YoY. Zydus Lifesciences has a Durability score of 75, Valuation score of 33.3 and Momentum score of 67.7. 

Analyst Abhishek Agarwal attributes the company’s growth in Q3 to healthy growth in the key markets of India and the US. He points to new product launches and innovations in the US market as growth drivers. According to the analyst, “Zydus Lifesciences has a strong portfolio of existing products and new US product launches in the pipeline, which provides revenue visibility over the long term.”

Agarwal expects growth in the India formulations business will be led by rising market share in key therapies. The consumer wellness segment will see an expansion in margins in the medium term, he says, due to pricing actions and recovery in rural demand. The analyst anticipates the firm’s revenue to grow at a CAGR of 14.3% over FY22-25. 

  1. JK Lakshmi Cement: Axis Direct maintains a ‘Buy’ call on this cement manufacturer with a target price of Rs 840, indicating an upside of 12.8%. In Q3FY23, the company’s net profit increased 19.1% YoY to Rs 76.4 crore, while its revenue grew 20.9% YoY. The company missed the brokerage’s estimates according to analysts Uttam Srimal and Shikha Doshi. JK Lakshmi Cement has a Durability score of 75, Valuation score of 37.5 and Momentum score of 60.8. 

The analysts say, “The company is working on many levers – optimising geo-mix, higher production, sale of blended cement, increasing proportion of trade sales, premium and value-added products, logistic efficiency.” They expect the company to post EBITDA growth of 12% CAGR over FY21-24 on the back of better realisation, higher volume and cost-saving initiatives.

Srimal and Doshi are optimistic as the demand for cement remains robust on account of the government’s push for infrastructure development and affordable housing.

  1. Mahindra & Mahindra: HDFC Securities maintains a ‘Buy’ call on this automobile manufacturer and increases the target price to Rs 1,554. It indicates an upside of 15.1%. In Q3FY23, the company’s profit rose 34.7% YoY to Rs 2,676.6 crore, while its revenue grew 30% YoY. Analysts Aniket Mhatre and Sonaal Sharma believe that the higher-than-estimated profit growth is backed by higher other income. Mahindra & Mahindra has a Durability score of 70, Valuation score of 47.5 and Momentum score of 58.9.

According to the analysts, “It is commendable that Mahindra & Mahindra has already achieved most of the targets it earmarked a couple of years ago (like EPS CAGR, improvement in auto margins, RoE at 18%, calibrated asset allocation, etc.) and the management has indicated that it is now time to raise its targets.” 

They continue to remain positive about the company on the back of a big order backlog for utility vehicles, positive rural sentiment, strides taken to achieve a strong position in electric vehicles and cautious capital allocation.

  1. Oil And Natural Gas Corp: ICICI Direct updates its rating to ‘Buy’ from ‘Hold’ on this oil and gas producer and gives it a target price of Rs 180, indicating an upside of 16.7%. In Q3FY23, ONGC reported an increase of  5.1% YoY in net profit to Rs 11,489 crore and a 15.7% YoY rise in revenue. Analysts Harshal Mehta and Payal Shah say the results are below estimates due to the decline in crude prices and increase in depreciation. ONGC has a Durability score of 70, Valuation score of 74.7 and Momentum score of 64.5.

The analysts believe that even if gas prices get capped, realisations are likely to remain high as they are well above historical averages, and with the commencement of production from the KG Basin in May, volumes are expected to grow. They add, “Sustained higher crude oil prices and gas realisations can result in better profitability.” Mehta and Shah remain optimistic due to the high dividend yield and payout ratio.

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

(You can find all analyst picks here)