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The Baseline
05 Apr 2023
Analysts' choice: 5 stocks analysts are bullish on
By Abhiraj Panchal
  1. Rainbow Childrens Medicare: ICICI Direct initiates a ‘Buy’ call on this healthcare facilities company with a target price of Rs 840. This indicates an upside of 13.6%. Analysts Siddhant Khandekar, Kushal Shah and Utkarsh Jain say that the company has expertise in the most case-sensitive healthcare group of pediatric and perinatal care. They believe that it makes the company “a standout player”.  The healthcare company has planned to expand its presence by adding 850 beds across cities in the next four to five years. 

Khandekar, Shah and Jain say, “The company’s hub and spoke model will aid growth and accessibility for patients.” Rainbow Childrens Medicare also follows a doctor engagement model where most of its core specialists work at the hospitals on a full-time retainer basis, which the analysts believe has led to a high degree of full-time doctor retention. They expect revenues to touch Rs 1,098 crore, showing an improvement of 13% YoY in FY23. 

  1. Embassy Office Parks REIT: ICICI Securities maintains a ‘Buy’ call on this REIT with a target price of Rs 425, indicating an upside of 35.3%. The company's board has approved the acquisition of Embassy Business Hub, a property under development, for an enterprise value of Rs 330 crore. The acquisition will be funded through debt at an interest cost of 8.1% per annum. Analyst Adhidev Chattopadhyay expects that the rent from phase 1 will commence in Q1FY25 and phase 2 in Q1FY28, and it will derive an enterprise value of Rs 310 crore at an 8% cap rate for the acquisition, which he believes is value-neutral. 

The analyst remains cautious as the FY23 Union Budget carried a proposal to make the debt repayment/capital return portion of listed REITs taxable from FY24 and currently, 40% of the NDCF distribution profile for Embassy REIT comes from debt repayment which will become taxable from FY24. He concludes, “there may be some relaxation in the final version of the Budget proposal, with debt repayment not being taxed upfront,” for which we await final clarity. 

  1. HG Infra Engineering: IDBI Cap maintains a ‘Buy’ call on this construction and engineering company with a target price of Rs 1,067. This indicates an upside of 34.8%. Analysts Vishal Periwal and Prachi Kadam visited HG Infra’s Ganga expressway project site and interacted with the execution team and management. HG Infra was awarded the Ganga expressway project in Q1FY23, with a project cost of Rs 4,400 crore. The company scheduled the completion by January 2025 but the analysts say, “it is planning on early completion in 24 months, post which they will be eligible for an early completion bonus of Rs 50 crore.”

HG Infra has maintained its revenue target of growing 25% and 22% YoY in FY23 and FY24, respectively. The analysts expect margins to be in the range of 15%-16%. According to them, it is also eyeing order inflows of Rs 8,000-10,000 crore in FY24. 

  1. InterGlobe Aviation: Prabhudas Lilladher maintains its ‘Buy’ rating on this airliner with a target price of Rs 2,347. This implies an upside of 23.5%. Analysts Jinesh Joshi and Stuti Beria believe that the company is well-placed to capitalise on India’s rapidly growing aviation market as it has a 56% market share in India. They are also positive about the management’s plans to increase the fleet size to 350, expand the network to 115 destinations and increase carrying capacity by FY24. 

Joshi and Beria believe that the company is “well placed to strongly benefit from higher capacity deployment, network expansion in domestic as well as international markets, lower crude prices and superior industry cost structure in the current environment.” The analysts add that the management’s plan to increase international destinations will drive market share expansion. They expect the company’s revenue to grow at a CAGR of 40% over FY22-25. 

  1. Dalmia Bharat: Axis Direct keeps its ‘Buy’ rating on this cement manufacturer and raises its target price to Rs 2,260 from Rs 2,120. This indicates an upside of 14.6%. Analysts Uttam Kumar Srimal and Shikha Doshi believe that the company’s strategy to continue exiting from its non-core businesses augurs well, as it can focus solely on its cement business. They are also positive about the firm’s capacity expansion plans, and expect its overall cement capacity to touch 49 metric tonnes per annum in FY24. 

Srimal and Doshi expect demand for cement to grow at a CAGR of 7-8% over FY22-25 on the back of the increased government capex on infrastructure and housing. They believe “with the commissioning of new capacity and cost optimization measures'', the company will be a major beneficiary of the Centre’s infrastructure push. The analysts estimate the cement manufacturer’s net profit to grow at a CAGR of 12% over FY22-25.

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

(You can find all analyst picks here)

 
Trendlyne Marketwatch
Trendlyne Marketwatch
05 Apr 2023
Market closes higher, Grasim Industries receives Rs 5,000 crore credit line from Axis Bank

Trendlyne Analysis

Nifty 50 closed at 17,557.05 (159, 0.9%), BSE Sensex closed at 59,689.31 (582.9, 1.0%) while the broader Nifty 500 closed at 14,709.40 (107.5, 0.7%). Of the 1,964 stocks traded today, 1,450 were on the uptick, and 492 were down.

Indian indices closed in the green, with the Nifty 50 rising over the 17,550 mark. India’s Services PMI fell to 57.8 in March compared to 59.4 in February but remained above 50, which indicates an expansion in activity, for the 20th consecutive month.

Nifty Smallcap 100 closed in the green, taking cues from the benchmark index. However, Nifty Midcap 100 closed flat. Grasim Industries closed higher after it received a Rs 5,000 crore credit line from Axis Bank. The company plans to use the amount for capex and repay some of its existing loans.

Most European indices gave up their gains at the open and traded in the red, in line with US indices futures. However, most major Asian indices closed in the green. Brent crude oil futures traded lower but crude oil prices are up over 6% in the last three trading sessions after OPEC+ announced oil production cuts on Sunday.

  • Avalon Technologies’ Rs 865 crore IPO gets bids for 9% of the available 1.14 crore shares on offer on the second day of bidding. The retail investor quota gets bids for 49% of the available 20.8 lakh shares on offer.

  • Relative strength index (RSI) indicates that stocks like Aurobindo Pharma, Bosch, Ingersoll-Rand (India) and KSB are in the overbought zone.

  • Ashok Leyland falls 4% in trade today. This is after the company reported an increase in wholesales across medium & heavy commercial vehicles in March. The stock ranks medium on the Trendlyne checklist score and shows up in a screener with declining RoE in the past two years.

  • FSN E-Commerce Ventures (Nykaa) rises 7% as reports suggest that 55 lakh shares worth Rs 75.5 crore change hands via a block deal. It is one of the top gainer stocks and is trading above its second resistance or R2 level.

  • Bharat Forge is falling as reports suggest a decline in demand for Class-8 trucks in North America. Orders in March have fallen 10% YoY and 17% MoM to 19,000 units. The stock shows up in a screener for companies with high promoter stock pledges.

  • RPP Infra Projects rises as it wins an order worth Rs 491.33 crore under the combined water supply scheme. It will be a subcontract from the joint venture with V. Sathyamoorthy & Co.

  • Indian Energy Exchange (IEX) is rising despite its trade volumes falling 4% YoY to 9,212 million units. According to Grid-India’s data, energy utilization for India has declined 2% YoY, but electricity demand is likely to go up with rising temperatures. IEX hit its 52-week low in the past week.

  • Ahluwalia Contracts secures an order worth Rs 557 crore to construct Dharavi Wastewater Treatment Facility under the Mumbai Sewage Disposal Project. It shows up in a screener for stocks in the Nifty 500 with consistently high returns over five years.

  • Hindustan Zinc is up 2% after reporting a 7% YoY increase in metal production to 10.3 lakh tonnes in FY23 due to better plant availability and continuous flow of mined metals. However, the consensus recommendation for the stock from nine analysts is ‘Sell’, according to Trendlyne’s Forecaster. Reports suggest that the company may not buy Vedanta’s zinc business as the Centre opposes the deal.

  • JP Morgan places HCL Technologies on its negative catalyst watch as it expects high risk in the near term ahead of Q4FY23 results.

  • Grasim Industries is rising as it receives a Rs 5,000 crore credit line from Axis Bank. It plans to use the amount for capex and repay some of its existing loans. It shows up in a screener of stocks with improving RoCE in the past two years. However, the stock has fallen 2% in the past year.

  • Utilities, cement & construction and retailing sectors rise by more than 2.6% over the past month.

  • IndusInd Bank's net advances rise 21% YoY to Rs 2.4 lakh crore, and deposits grow 15% YoY as of March 31, 2023. Federal Bank's net advances also increase 20.2% YoY, while deposits rise 17.4%.

  • Godrej Consumer Products expects double-digit growth in volume and EBITDA, and improvement in gross margin in Q4FY23. According to its management, volume growth is mostly driven by the home and personal care segment. The stock hit a 52-week high in the past week.

  • Pranjul Bhandari, Chief India Economist at HSBC Securities & Capital Markets (India), expects the RBI to hike interest rates by 25 bps tomorrow. She says a change in stance or growth forecast is not likely.

  • Sharekhan maintains its ‘Buy’ rating on Bharat Electronics with a target price of Rs 120, indicating an upside of Rs 96.6. The brokerage believes the firm’s strong manufacturing base, robust order book, healthy balance sheet and focus on diversification will drive growth in the coming quarters. It expects the company’s revenue to grow at a CAGR of 15.4% over FY22-25.

  • Bajaj Auto's total wholesales fall 2% YoY to 2.9 lakh units in March 2023. Its total domestic wholesales rise 47% YoY but total exports drop 38% YoY.

  • India’s Services PMI falls to 57.8 in March compared to 59.4 in February but remains above 50 for the 20th consecutive month.

  • Bosch, Cyient and ICICI Prudential Life Insurance rise 9.2%, 8.6% and 7.2% respectively over the past month, ahead of their Q4FY23 results.

  • Timothy Moe, Chief Asia Pacific Strategist at Goldman Sachs, expects Nifty to reach 20,000 over the next year. The global investment bank recommends buying Indian equities saying it is time to accumulate stocks trading at reasonable prices.

  • Larsen & Toubro's arm L&T Energy Hydrocarbon wins multiple offshore contracts worth Rs 7,000 crore from clients in West Asia. The scope of the work comprises engineering, procurement, construction and installation of new offshore facilities and integration with existing installations.

  • Adani Ports & Special Economic Zone is rising as its FY23 port cargo volumes increase 9% YoY to 339 million metric tonnes (MMT). The company’s monthly cargo volumes in March have risen 9.5% YoY to 32 MMT. The stock shows up in a screener for companies with book value per share improving over the past two years.

  • RailTel Corporation bags a Rs 76.1 crore order from the Bihar State Electronics Development Corporation to implement digital infrastructure in government colleges. It has also received a Rs 38.9 crore order from the National Informatics Centre for a leased line across 19 sites.

  • World Bank revises India’s FY23-24 GDP growth forecast to 6.3% from the earlier estimate of 6.6%. It expects a slowdown because of fall in consumption due to rising borrowing costs and lower income growth.

  • Paytm’s loan disbursements rise 82% YoY in Q4FY23 due to an increase in its consumer and merchant base. Value of loans surge 253% to Rs 12,554 crore, while gross merchandise value and average monthly transacting users also grow with payment volumes in Q4. The stock has gained 21% in the past three months.

  • Suzlon Energy's Chief Executive Officer Ashwani Kumar steps down from the post due to personal reasons. Its board approves JP Chalasani as the replacement with immediate effect.

  • Centre removes windfall tax on locally produced crude oil from the earlier Rs 3,500 per tonne and cuts export duty on diesel to Rs 0.50 per litre from Rs 1.

  • Cyeint rises after a reshuffle in its top management roles. It promotes Karthik Natarajan to the post of Executive Director and Chief Executive Officer and appoints Krishna Bodanapu as the Executive Vice-Chairman and Managing Director.

  • Ashish Kacholia cuts his stake in IOL Chemicals and Pharmaceuticals to below 1% in Q4FY23, as against 2% held in Q3FY23.

  • NBCC bags an order to construct roads along the Bangladesh border in Mizoram for Rs 448 crore. The stock is up 3% and gains 38.2% from its 52-week low.

  • Bajaj Finance’s assets under management in FY23 grow 29% YoY to Rs 2.47 lakh crore, while its deposit book surges by 45% YoY. The company’s consolidated net liquidity surplus stood at Rs 11,850 crore as of March 31, indicating a strong liquidity position. The stock shows up in a screener for companies with improving cash flows and high durability scores.

Riding High:

Largecap and midcap gainers today include FSN E-Commerce Ventures Ltd. (136.65, 7.77%), L&T Technology Services Ltd. (3,652.50, 6.32%) and Coforge Ltd. (4,079.20, 5.92%).

Downers:

Largecap and midcap losers today include Ashok Leyland Ltd. (134.75, -4.43%), Aditya Birla Fashion and Retail Ltd. (206.90, -3.90%) and Adani Transmission Ltd. (907.85, -3.77%).

Crowd Puller Stocks

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

Top high volume gainers on BSE included Tata Investment Corporation Ltd. (1,940.90, 9.46%), Elgi Equipments Ltd. (466.40, 7.55%) and Aegis Logistics Ltd. (400.05, 6.41%).

Top high volume losers on BSE were Ashok Leyland Ltd. (134.75, -4.43%) and Aditya Birla Fashion and Retail Ltd. (206.90, -3.90%).

Rossari Biotech Ltd. (606.00, 0.61%) was trading at 6.9 times of weekly average. JK Cement Ltd. (2951.15, 1.31%) and J B Chemicals & Pharmaceuticals Ltd. (1,975.00, 0.83%) were trading with volumes 5.0 and 4.2 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

13 stocks overperformed with 52-week highs,

Stocks touching their year highs included - Abbott India Ltd. (22,839.00, 2.62%), Aegis Logistics Ltd. (400.05, 6.41%) and AIA Engineering Ltd. (2,965.70, 0.37%).

25 stocks climbed above their 200 day SMA including Elgi Equipments Ltd. (466.40, 7.55%) and L&T Technology Services Ltd. (3,652.50, 6.32%). 6 stocks slipped below their 200 SMA including Orient Electric Ltd. (246.10, -2.94%) and Hitachi Energy India Ltd. (3,224.05, -2.08%).

 
Trendlyne Marketwatch
Trendlyne Marketwatch
03 Apr 2023
Market closes higher, Tejas Networks bags order worth Rs 696 crore from BSNL

Trendlyne Analysis

Nifty 50 closed at 17,398.05 (38.3, 0.2%), BSE Sensex closed at 59,106.44 (114.9, 0.2%) while the broader Nifty 500 closed at 14,601.95 (44.1, 0.3%). Of the 1,977 stocks traded today, 1,559 were on the uptrend, and 384 went down.

Indian indices settled in the green after switching between losses and gains on a volatile day of trade. Tejas Networks closed over 4% higher after it won its largest-ever order worth Rs 696 crore from Bharat Sanchar Nigam (BSNL).

Nifty Smallcap 100 and Nifty Midcap 100 closed in the green, outperforming the benchmark index. Nifty Bank and Nifty Media closed higher than Friday’s levels. Nifty Auto closed sharply higher, led by heavyweights Maruti Suzuki and Mahindra & Mahindra.

European stocks traded higher, taking cues from the major Asian indices, which closed in the green. However, US indices futures traded lower as investors assessed the impact of rising crude oil prices on already high inflation levels. Brent crude oil futures rose over 5% on the back of production cuts by OPEC+.

  • Avalon Technologies’ Rs 865 crore IPO gets bids for 3% of the available 1.14 crore shares on offer on the first day of bidding. The retail investor quota gets bids for 16% of the available 20.8 lakh shares on offer. The IPO consists of a fresh issue of shares worth Rs 320 crore and an offer for sale of Rs 545 crore.

  • Mahanagar Gas sees a short buildup in its March 29 future series as its open interest rises 53% with a put-call ratio of 0.48.

  • Ed Yardeni, President of Yardeni Research, says the US Federal Reserve will likely hike interest rates by 25 bps. He expects inflation to moderate further.

  • PNB Housing Finance rises as Morgan Stanley gives an ‘overweight’ call on the stock with a target price upside of 32%. This comes after the company’s board approved a rights issue of 9.06 crore shares to raise up to Rs 2,500 crore. Morgan Stanley expects PNB Housing Finance’s net profit to rise by 8-9% over FY24-25.

  • Tata Motors’ monthly wholesales in March rises 3% YoY to 89,351 units, driven by a 4% YoY and 3% YoY growth in total passenger vehicle and domestic commercial vehicle sales. Its electric vehicle (EV) sales jump 89% YoY to 6,509 units. The stock shows up in a screener for companies with a low PE Ratio.

  • Tejas Networks is surging as it wins an order worth Rs 696 crore from Bharat Sanchar Nigam (BSNL) to supply, install and commission 13,000 of its access and aggregation routers.

  • ICICI Bank, Nippon Life India Asset Management and Poonawalla Fincorp's weekly average delivery volumes rise ahead of their Q4FY23 results in April.

  • Rail Vikas Nigam is rising as it receives two orders from the NHAI totalling Rs 1,992.7 crore. The first project involves the construction of a six-lane elevated expressway in West Bengal for Rs 720.7 crore. The company also bagged a contract for constructing a six-lane highway in Jharkhand for Rs 1,272 crore through its consortium, in which its share is 49%.

  • Deepak Khetrapal, Managing Director and CEO of Orient Cement, expects demand for cement to increase by 10-12% in FY24. He says there is a need to increase the price of cement by Rs 40-50 per bag in South India.
  • Telecom stocks like Vodafone Idea, Tejas Networks, Tata Teleservices (Maharashtra) and Optiemus Infracom are rising in trade. The broader sectoral index BSE Telecom is also trading in the green.

  • Anil Gupta, promoter of KEI Industries, sells a 0.22% stake in the company on Friday. He now holds a 12.18% stake.

  • HG Infra Engineering is rising after winning two projects from the National Highway Authority of India, for constructing two 6-lane highways in Jharkhand worth Rs 1,762.4 crore for the Varanasi-Kolkata route.

  • India’s manufacturing PMI touches a three-month high of 56.4 in March, compared to 55.3 in February on the back of improving output and new orders.

  • ICICI Direct initiates coverage on CreditAccess Grameen with a ‘Buy’ rating and a target price of Rs 1,100. This implies an upside of 20.1%. The brokerage believes that the firm is well-placed to expand further in the untapped microfinance space given its deep penetration and increasing customer base. It expects the company’s net profit to grow at a CAGR of 52% over FY22-25.

  • Crude oil prices rise over 5% to $84 per barrel, after OPEC+ announces a production cut of 1.15 million barrels per day. David Lennox, Resource Analyst at Fat Prophets, expects crude oil prices to hover around $85-87 per barrel in the near term.

  • Maruti Suzuki is rising despite its passenger vehicle (PV) wholesales declining by 1% YoY to 1.3 lakh units. Mahindra & Mahindra is also up as its PV wholesales increase 30% on the back of growth in SUV sales.

  • SpiceJet is rising as it sells its cargo and logistics division for Rs 2,555.7 crore, converting it into a separate entity called SpiceXpress and Logistics Private Ltd. According to MD & Chairman Ajay Singh, this hive-off will "reduce SpiceJet’s negative net worth and strengthen SpiceJet's balance sheet".

  • Avalon Technologies raises Rs 389.25 crore from anchor investors ahead of its IPO by allotting 89.27 lakh shares at Rs 436 per share. Investors include Goldman Sachs, Neuberger Berman Emerging Markets Equity Fund and Mahindra Manulife Mutual Fund.

  • JP Morgan initiates coverage on KPIT Technologies with an ‘Underweight’ rating and a target price of Rs 520. The brokerage expects a slowdown in the growth of the company by over 20% in the next few years.

  • Barbeque-Nation Hospitality falls after reporting a ransomware attack on Friday. The company is investigating the incident and will take corrective actions. However, it maintains that its core operations are unaffected and restaurants are working efficiently.

  • Government Of Singapore sells a 2.9% stake (51.5 lakh shares) worth Rs 670 crore in Phoenix Mills in a bulk deal on Friday.

  • Ashoka Buildcon rises as it receives a letter of acceptance from the Ministry of Railways for civil engineering works and the supply of machine-crushed stones for the North Central Railway project. The contract value is Rs 284.6 crore.

  • Gujarat Gas's Managing Director Sanjeev Kumar resigns on account of his appointment as Principal Secretary to the Government Forests & Environment Department, effective from April 1, 2023.

  • G R Infraprojects is rising as it wins two projects for building greenfield highways in India's north and south belts. The first order worth Rs 847.8 crore is to build a four-lane highway in Telangana and the other for a six-lane highway worth Rs 1,248.3 crore on the Varanasi-Kolkata route.

  • Hindustan Aeronautics’ revenue rises 7.6% YoY to Rs 26,500 crore in FY23. Its order book stands at Rs 82,000 crore as of the end of March. Meanwhile, Bharat Electronics’ revenue and exports increase 15% YoY to Rs 17,300 crore and 40% in FY23. Its order book stands at Rs 60,500 crore.

Riding High:

Largecap and midcap gainers today include Vodafone Idea Ltd. (6.15, 6.03%), Procter & Gamble Hygiene & Healthcare Ltd. (1,4031.35, 5.19%) and Indian Railway Finance Corporation Ltd. (27.80, 4.51%).

Downers:

Largecap and midcap losers today include Adani Transmission Ltd. (943.40, -5.00%), Adani Green Energy Ltd. (837.45, -4.96%) and Hindustan Petroleum Corporation Ltd. (225.50, -4.77%).

Volume Rockets

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

Top high volume gainers on BSE included Rail Vikas Nigam Ltd. (75.35, 9.84%), Balaji Amines Ltd. (2,100.00, 8.06%) and Laxmi Organic Industries Ltd. (240.15, 7.81%).

Top high volume losers on BSE were KPIT Technologies Ltd. (811.20, -12.31%), Mahanagar Gas Ltd. (920.95, -6.36%) and Orient Electric Ltd. (253.55, -6.20%).

Suven Pharmaceuticals Ltd. (470.70, -0.36%) was trading at 7.4 times of weekly average. Graphite India Ltd. (275.80, 5.05%) and Hindustan Petroleum Corporation Ltd. (225.50, -4.77%) were trading with volumes 4.3 and 3.7 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

11 stocks took off, crossing 52-week highs, while 1 stock hit 52-week low.

Stocks touching their year highs included - AIA Engineering Ltd. (2954.80, 1.78%), Zydus Lifesciences Ltd. (492.40, 0.17%) and Dr. Reddy's Laboratories Ltd. (4,656.50, 0.73%).

Stock making new 52 weeks lows included - TeamLease Services Ltd. (2,203.10, -1.62%).

25 stocks climbed above their 200 day SMA including Procter & Gamble Hygiene & Healthcare Ltd. (14,031.35, 5.19%) and Tejas Networks Ltd. (607.95, 4.67%). 15 stocks slipped below their 200 SMA including Orient Electric Ltd. (253.55, -6.20%) and Hindustan Petroleum Corporation Ltd. (225.50, -4.77%).

 
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The Baseline
31 Mar 2023
Five Interesting Stocks Today
  1. Bharat Electronics: This public sector defence company has bagged multiple orders worth nearly Rs 16,300 crore in March for the supply of indigenously developed equipment and electronic warfare systems to the Indian Army, Navy and Air Force. These order wins come after the company’s order inflow fell to a two-year low of Rs 3,500 crore during the first nine months of FY23 due to approval delays.

The company is expected to be a major beneficiary of the Centre’s push for reducing defence imports, as it commands a market share of 37% in the Indian defence sector. According to Geojit BNP Paribas, the company’s order book backlog of Rs 50,116 crore provides strong revenue visibility over the next three years. The company shows up in a screener for stocks with consistently high returns over the past five years. According to Trendlyne’s Forecaster, the consensus recommendation from 20 analysts is ‘Buy’.

While the management is optimistic about growth in orders from the defence sector, it plans to diversify into non-defence sectors like healthcare, airports, infrastructure and smart city projects. The firm’s long-term plan is to increase the contribution of its non-defence segment to 25% from 10% of total revenue.

With the rise in demand for locally manufactured defence systems, the company expects these orders to increase in the coming years. To be able to meet the upcoming requirements, it aims to make five new facilities operational in the next two-three years. It has budgeted a capex of Rs 600 and Rs 600-800 crore for FY23 and FY24 respectively. The management expects revenue to grow in the range of 15-20% in FY24, led by large orders and commissioning of new facilities.

  1. Zydus Lifesciences: This pharmaceutical company reached its 52-week high of Rs 493.2 per share on Wednesday after receiving two US FDA approvals on the same day. The company shows up in a screener of stocks with strong momentum.

Zydus Lifesciences received final approval from the US FDA for its loperamide hydrochloride capsules, used for the treatment of inflammatory bowel disease, on Tuesday. According to IQVIA, the capsule has had an estimated annual sales of $34.7 million in the year ended January 2023 in the US.

The company received final approval from the US FDA for its levothyroxine sodium injection as well on Tuesday. The capsules, used for the treatment of myxedema coma, will be manufactured at its facility in Jarod, Gujarat.

However, it’s not all good news for the company. Earlier in the week (on Sunday), the drug manufacturer announced that it had recalled 55,000 bottles of colchicine tablets after it received an out-of-specification (OOS) result during release testing.

According to Sharekhan, the drug manufacturer stands to gain from strong product launches and volume growth in the US market, as its revenue of Rs 1,925 crore in Q3FY23 contributed to 44% of the total revenues. The brokerage estimates the company’s revenue to grow at a CAGR of 7.5% during FY22-25 and maintains its ‘buy’ rating on the stock with a target price of Rs 572. Trendlyne’s forecaster estimates its revenue to rise by 9.9% in FY23.

  1. Allcargo Logistics: This logistics company rose over 2.4% on Tuesday after announcing its plan to acquire a 30% stake in Gati-Kintetsu Express for Rs 406.7 crore. Allcargo will buy shares from KWE Singapore (26% stake) and KWE India (4% stake). Gati-Kintetsu Express is a JV of Allcargo’s group company Gati and Kintetsu World Express. Gati deals in overseas courier services, while KWE is a Japanese freight forwarding company.

Allcargo has been on an acquisition spree over the past few months. The company had also bought the remaining 38.9% stake from its partner, ACCI, in the contract logistics business at an enterprise value of Rs 373 crore earlier this month.

In January, it bought a 75% stake in German cargo consolidator Fair Trade for 12 million euros, according to reports. Speaking to the media about the company’s recent acquisitions, Ravi Jakhar, the Chief Strategy Officer said the acquisitions were in line with the company’s strategy to simplify the organisational structure, enhance its growth in the domestic supply chain, and strengthen its position in key strategic markets.

Apart from the acquisitions, the company sold 90% of its logistics parks business to private equity firm Blackstone in February. Allcargo will also sell its non-core customs business.

However, despite a recent rise in its share price, the company is still down 27.3% from its 52-week high of Rs 495 in November 2022. But, it ranks high on Trendlyne’s checklist with a score of 73.9% and shows up in a screener for stocks with high Piotroski scores.

  1. Jindal Stainless: This metals & mining stock rose 4% in early trade on Wednesday after it announced an acquisition of a 49% stake in Indonesia-based Nickel Pig Iron Co. However, it pared the gains and closed 0.2% lower. Jindal Stainless (JSL) plans to invest $157 million (Rs 1,290 crore) over the next two years to build a facility with a production capacity of 2 lakh metric tonnes. The company’s Managing Director Abhyuday Jindal says that not having backward integration for nickel is a big risk for the nation as we face a deficiency in nickel reserves.

This acquisition will help the company secure the supply of nickel, a critical raw material used in making alloys. Jindal Stainless has a series of other projects lined up. The company has announced an investment of Rs 120 crore to set up rooftop solar projects in Jajpur and Hisar facilities.

Sector growth looks decent for JSL as Bank of America Securities has given a positive stance for the near term. It expects steel demand to bounce back, resulting in higher prices. It also expects export opportunities to improve as export duty on steel has been scrapped.

Although the stock has fallen 5% in the past week, it gained 23.4% in the past three months and outperformed its sector by 3.7% in the past month. Jindal Stainless was a multi-bagger stock last year (gaining nearly 199%) but gained only 43.5% this year. Trendlyne’s Forecaster estimates a 5.7% increase in its annual revenue in FY23.

  1. Sun Pharmaceuticals Industries: Thispharmaceutical giant expects its revenue to take a hit after reporting a ransomware attack on its system in early March. It reported a breach of some files and theft of company and personal data, impacting operations. The firm has isolated its network and started the recovery process. It is also evaluating the expenses for litigation and insurance. The stockfell nearly 3% the following week.

The firm did a series of acquisitions in Q4FY23, including a 60% stake in Vivaldis Health and Foods for Rs 143 crore in March, US-based Concert Pharmaceuticals for USD 576 million and a minority stake in Agasta Software and Remidio Innovative Solutions.

Lately, Sun Pharma has been focusing on the domestic market to increase its market share. The US and India each contribute 31% of revenue to the company, while emerging markets contribute 19%. It has nearly 9% share of the pharma market in India. Market share growth coupled with new launches for India formulations have led top-line growth in Q3FY23. Focusing on the global specialty portfolio also led to an increase in the margins. The specialty portfolio contributes nearly 13% of its revenue. The stock shows up in a screener for top Indian exporters among listed companies.

According to the management, its US portfolio is expected to grow 4.6%, while the India division should rise 7%. Its chronic portfolio is also expected to see strong growth led by new launches.

ICICI Securities says Sun Pharmaceuticals’ India business will outperform the industry, and global specialty sales will help margin expansion. Meanwhile, profitability will be slightly offset by rising R&D spend.


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
31 Mar 2023
 
Trendlyne Marketwatch
Trendlyne Marketwatch
31 Mar 2023
Market closes higher, HDFC Securities keeps ‘Buy’ rating on Aether Industries

Trendlyne Analysis

Nifty 50 closed at 17,359.75 (279.1, 1.6%), BSE Sensex closed at 58,991.52 (1031.4, 1.8%) while the broader Nifty 500 closed at 14,557.85 (212.3, 1.5%). Of the 1,964 stocks traded today, 1,301 were gainers and 618 were losers.

Indian indices extended their gains in the final hour of the trading session and closed in the green. The Nifty 50 rose nearly 250 points and closed above the 17,300 mark. Reliance Industries will conduct a shareholder meeting to demerge its financial services business.

Nifty Smallcap 100 and Nifty Midcap 100 closed in the green, following the benchmark index. Nifty Energy and Nifty Bank closed higher than Wednesday’s levels. All other major sectoral indices close in the green. Nifty IT gained 2.4% at close, following the tech-heavy Nasdaq 100 index closing 0.91% higher on Thursday.

European indices trade in the green, in line with the Asian indices, which closed higher. US indices futures also traded in the green, led by the tech-heavy Nasdaq 100 index futures.

  • Zydus LifesciencesbeatsAbbott India in YoY revenue and net profit growth, FII holdings and broker average target upside. But it lags in Trendlyne durability score and mutual fund holding.

  • AIA Engineering and KEI Industries reach their all-time highs of Rs 2,960 and Rs 1,744 per share respectively. AIA Engineering has risen 11.5% in the past month, while KEI Industries grew 5.8%. They show up in a screener for stocks with new 1-year highs.

  • Crisil expects IT firms’ revenue to fall to 10-12% in FY24. In FY22, revenue growth for the sector was 19% and in FY23, it is expected to be around 18-20%. The reason for the fall is a slowdown in the BFSI sector, which accounts for 30% of its revenues.

  • Torrent Power is one of the top loser stocks in trade today. It shows up in a screener with declining ROE in the past two years. The stock, however, has gained 6% in the past six months.

  • Avalon Technologies, a vertically-integrated electronic manufacturing services provider, opens for IPO subscription on Monday. The price band for the issue is Rs 415-436 per share. The size of the issue is Rs 865 crore, comprising a fresh issue of Rs 320 crore and an offer for sale for Rs 545 crore.

  • Anupam Rasayan, Manappuram Finance and Rail Vikas Nigam outperform the Sensex by 32.4%, 20.2% and 18.6% respectively in the past month.

  • Tata Consultancy Services, Infosys, HCL Technologies, MphasiS and LTIMindtree are rising in trade. All constituents of the broader sectoral index Nifty IT are also trading in the green.

  • Shriram Properties rises as strategic investors grab a 14.3% stake in the company through a block deal. It shows up in a screener for high-volume stocks today.

  • HDFC Securities maintains its ‘Buy’ rating on Aether Industries with a target price of Rs 1,121, indicating an upside of 20.6%. The brokerage remains positive about the firm due to its capacity expansion-led growth, advanced R&D capabilities, strong product pipeline and market leadership in most of its products. It expects the company’s revenue to grow at a CAGR of 37.1% over FY22-25.

  • Jefferies maintains its ‘Buy’ rating on Sun Pharmaceutical Industries with a target price of Rs 1,200. This comes after Sun Pharma completed the acquisition of US-based Concert Pharmaceuticals.

  • Alembic Pharma rises more than 6% in trade as the US FDA approves its ophthalmic solution used to treat glaucoma. It is trading above its third resistance or R3 level and is a high-volume high-gainer stock.

  • Garden Reach Shipbuilders & Engineers is surging as it signs a contract with the Ministry of Defence for the construction of four next-generation offshore patrol vessels for Rs 3,500 crore. The first vessel will be delivered 44 months after signing the contract.

  • Indian rupee appreciates 24 paise to 82.19 against the US dollar in early trade today. The rise is on the back of foreign fund flow inflows and fall in crude oil prices.

  • Commodity trading & distribution, electric utilities and oil equipment & services industries rise more than 16% over the past month.

  • Larsen & Toubro is rising as its power transmission and distribution business bags multiple contracts worth Rs 1,000-2,500 crore to establish gas- and air-insulated substations in the Khavda RE zone and Kurnool.

  • ICICI Bank, Federal Bank, Bank of Baroda, IDFC First Bank and Bandhan Bank are rising in trade. All constituents of the broader sectoral index Nifty Bank are also trading in the green.

  • Morgan Stanley upgrades India to ‘Equalweight’ from ‘Underweight’ amid a narrowing valuation premium and a strong economy. The brokerage is positive about India’s structural growth outlook.

  • Bharat Electronics is rising as it signs two contracts worth Rs 2,696 crore with the Ministry of Defence to supply fire control systems worth Rs 1,705 crore to the Indian Navy and procure automated air defence control and reporting system worth Rs 991 crore for the Indian Army.

  • Foreign institutional investors invest Rs 253.8 crore in the equity market over the past week, according to Trendlyne's FII dashboard. Meanwhile, index options witness the highest inflow of Rs 39,707.7 crore from foreign investors. Mutual funds also invest Rs 5,184.9 crore in the Indian markets.

  • G R Infraprojects is rising as it receives an order worth Rs 740.8 crore from the National Highways Authority of India to construct a four-lane highway in Karnataka.

  • Va Tech Wabag is surging as its joint venture with Metito Overseas secures a design build operate (DBO) order worth Rs 4,400 crore from the Chennai Metropolitan Water Supply and Sewerage Board. The DBO order is for building a 400 million litres per day (MLD) sea water reverse osmosis desalination plant.

  • Reports suggest that 2.06 crore shares (0.55% equity) of Vedanta, amounting to Rs 585.64 crore, change hands in a large trade.

  • Hero MotoCorp appoints Niranjan Gupta as Chief Executive Officer, effective from May 1, 2023. Gupta has been promoted from his current position as Chief Financial Officer.

  • Jefferies initiates coverage on SBI Cards and Payment Services with a ‘Buy’ rating and a target price of Rs 900. This implies an upside of 25%. The brokerage expects a 23% CAGR in card spends and improvement in net interest margins over FY23-26E.

  • Share prices of Bajaj Auto, Mahindra CIE Automotive and UTI Asset Management fall over the week ahead of their Q4FY23 results in April.

  • Rail Vikas Nigam bags a project from the Ministry of Railways for the manufacture and maintenance of Vande Bharat trainsets, including the upgradation of government manufacturing units & trainset depots. It has to deliver 200 trainsets for a cost of Rs 120 crore each.

  • Bandhan Bank will transfer loans, a written-off portfolio and non-performing assets worth Rs 4,930.3 crore to an asset reconstruction company for Rs 739.8 crore. After hitting a 52-week low in the past week, the stock is up 3.5% in trade today.

  • Bharat Dynamics signs a contract worth Rs 8,161 crore with the Ministry of Defence for the production and supply of Akash weapon system to the Indian Army. It will be supplied to two regiments and executed in three years. The stock shows up in a screener for stocks with strong annual EPS growth.

Riding High:

Largecap and midcap gainers today include Macrotech Developers Ltd. (930.30, 7.36%), Bharat Electronics Ltd. (97.55, 6.55%) and Adani Wilmar Ltd. (405.85, 4.99%).

Downers:

Largecap and midcap losers today include Oil India Ltd. (251.65, -4.30%), Torrent Power Ltd. (510.40, -3.74%) and NHPC Ltd. (40.20, -3.37%).

Volume Shockers

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

Top high volume gainers on BSE included Sonata Software Ltd. (836.30, 11.26%), Capri Global Capital Ltd. (661.15, 9.91%) and HLE Glasscoat Ltd. (504.80, 8.06%).

Top high volume losers on BSE were Sterling and Wilson Renewable Energy Ltd. (291.60, -5.55%), Bajaj Electricals Ltd. (1,051.90, -4.28%) and Phoenix Mills Ltd. (1,300.95, -2.96%).

Aptus Value Housing Finance India Ltd. (241.50, 0.19%) was trading at 10.2 times of weekly average. PNB Housing Finance Ltd. (513.15, 5.72%) and Alembic Pharmaceuticals Ltd. (496.35, 5.91%) were trading with volumes 8.2 and 7.7 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

11 stocks hit their 52-week highs, while 7 stocks tanked below their 52-week lows.

Stocks touching their year highs included - AIA Engineering Ltd. (2,908.00, 0.09%), Bosch Ltd. (19,369.90, 2.07%) and Zydus Lifesciences Ltd. (491.55, 0.24%).

Stocks making new 52 weeks lows included - Johnson Controls-Hitachi Air Conditioning India Ltd. (1,009.15, -1.54%) and Vodafone Idea Ltd. (5.80, -1.69%).

44 stocks climbed above their 200 day SMA including Bharat Electronics Ltd. (97.55, 6.55%) and Hitachi Energy India Ltd. (3,343.40, 5.47%). 8 stocks slipped below their 200 SMA including Hindustan Zinc Ltd. (293.35, -1.89%) and Apollo Hospitals Enterprise Ltd. (4,310.90, -1.19%).

 
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The Baseline
30 Mar 2023
Screener of the week: Best and worst performing sectors in Q4FY23, and their top companies
By Abdullah Shah

The first few months of 2023 have been anything but positive as the Nifty 500 fell by nearly 8% in the past 90 days. This week, we take a look at the outperforming and underperforming sectors over the past quarter and their best and worst-performing companies. 

Sectors like food, beverages & tobacco, healthcare equipment and consumer durables have surpassed the Nifty 500, despite a weak quarter for markets. These are defensive sectors which remain stable regardless of the economy, as consumer spending here stays steady. The general industrials sector returned 2.9% in this period, backed by the capex push of the central government. 

The outperforming screener shows stocks from the top-performing sectors. These are high-growth stocks which outperformed Nifty 500 by over 20% in the past year and by over 10% in the past quarter. Notable stocks in the screener are ITC, Siemens, Varun Beverages, Polycab India and KEI Industries. 

Sectors like commercial services, utilities, media and retailing were underperformers and fell by over 15% in the past quarter. The utilities sector was dragged down by Adani group stocks, which plunged after Hindenburg’s explosive report on the group’s corporate governance issues. 

The underperforming screener has stocks from the worst-performing sectors. Companies in this screener are Adani Total Gas and Adani Transmission, which underperformed Nifty 500 by over 50 percentage points. It also includes players like Aditya Birla Fashion, Concor and Sun TV Network.

You can find some popular screenershere.

 
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The Baseline
29 Mar 2023
Chart of the week: Facing high cost of funds, NBFCs are passing on rate hikes to their customers
By Abdullah Shah

Interest rate hikes by central banks across the world have put banks under pressure, and the collapse of Silicon Valley Bank (SVB) and Credit Suisse signal the dangers ahead. 

SVB bought billions of dollars worth of treasury bonds using customers’ deposits when the interest rate was low. However, as the US Fed increased interest rates aggressively over the past year, the value of these bonds plummeted, causing the bank to sell the bonds at high losses and eventually collapse. 

This raises the question of how Indian lenders are operating in an environment of rising repo rates.

In this edition of chart of the week, we take a look at the cost of funds (COF) of Indian non-banking financial companies (NBFC). COF is the interest rate at which a bank borrows money from the central bank and other financial institutions to lend to its customers. The general trend is that the higher the repo rate, the higher the cost of funds for banks. 

Most NBFCs which witnessed a rise in COF in the past two quarters have been able to maintain their net interest margin (NIM) by increasing customers’ effective interest rates.

Even though Bajaj Finance’s COF has risen for the past two quarters (a QoQ increase of 30 bps in Q3FY23), the lender managed to keep its NIM at Q2 levels. The company’s assets under management (AUM) improved by 27% YoY to Rs 2.3 lakh crore in the same quarter, while its net interest income (NII) grew by 24% YoY.

Cholamandalam Investment & Finance’s COF has also increased by 40 bps QoQ to 6.4% in Q3, for the second consecutive quarter since Q1FY23. However, the lender was able to offset this rise by increasing customers’ effective lending rates and a staggered hike in interest rates across its segments. Its loan disbursements increased by 68% YoY to Rs 17,559 crore in Q3FY23.

Poonawala Fincorp also managed to improve its NIM by 33 bps QoQ in Q3FY23 and loan book by 34.2% YoY to Rs 17,682 crore despite its COF rising 30 bps QoQ to 7.5%. 

Piramal Enterprises and Muthoot Finance were the only exceptions to this trend as their COF fell 40 bps and 20 bps QoQ respectively in Q3FY23. This is despite the Reserve Bank of India (RBI) hiking policy repo rates by 40 bps. Muthoot Finance managed to improve its COF by reducing borrowings from bonds while increasing them from banks and financial institutions.

 
Trendlyne Marketwatch
Trendlyne Marketwatch
29 Mar 2023
Market closes higher, HFCL bags order worth Rs 282.61 crore from the Gujarat Metro Rail Corp

Trendlyne Analysis

Nifty 50 closed at 17,080.70 (129, 0.8%), BSE Sensex closed at 57,960.09 (346.4, 0.6%) while the broader Nifty 500 closed at 14,345.60 (133.8, 0.9%). Of the 1,967 stocks traded today, 1,339 were on the uptrend, and 573 went down.

Indian indices extended their gains in the final hour of the trading session and closed in the green. The Nifty 50 rose nearly 130 points and closed above the 17,000 mark. Zee Entertainment closed sharply higher after it reached a settlement agreement with IndusInd Bank and paid the first tranche of the settlement amount.

Nifty Smallcap 100 and Nifty Midcap 100 closed in the green, following the benchmark index. Nifty Pharma and Nifty Bank closed higher than Tuesday’s levels. Nifty Auto rose over 1.7%, led by heavyweights Maruti Suzuki India and Tata Motors.

European indices traded in the green, in line with the Asian indices, which closed higher. US indices futures also traded in the green, led by the tech-heavy Nasdaq 100 index futures. Brent crude oil futures traded in the green for a third straight trading session after industry data released on Tuesday showed a surprisingly large draw in US crude stocks, which could lead to tighter supply in the near term.

  • Money flow index (MFI) indicates that stocks like Anupam Rasayan India and Aurobindo Pharma are in the overbought zone.

  • Macrotech Developers is up 10% in trade today. The company shows up in a screener for stocks with book value per share improving over the past two years. The firm is also ranked high on Trendlyne’s checklist with a score of 50%.

  • Rainbow Children's Medicare rises 14% in six months. ICICI Direct has a ‘Buy’ rating on the stock with a target price of Rs 840. The stock gains 74% from its 52-week low.

  • JSW Steel, TVS Motor and Crisil are trading above their third resistance or R3 level.

  • Media stocks like Dish TV India, New Delhi Television, Zee Entertainment Enterprises, TV18 Broadcast and Network 18 Media & Investments are rising in trade. The broader sectoral index Nifty Media is also trading in the green.

  • Maruti Suzuki rises as it achieves exports of 25 lakh vehicles to date. The stock has gone up 10% in the past year. It features in a screener for stocks with upgraded broker recommendations or target prices in the past three months.

  • Zee Entertainment rises over 4% after it reaches a settlement agreement with IndusInd Bank and pays the first tranche of the settlement amount.

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

  • PNB Housing Finance is rising as its board approves a rights issue of 9.06 crore fully paid-up equity shares amounting to Rs 2,500 crore. The issue price is set at Rs 275, including a premium of Rs 265. The rights issue will open on April 13 and close on April 27.

  • The Department of Economic Affairs, in its Monthly Economic Report, states that India’s current account deficit will narrow in FY23. It also discusses the possibility of extreme weather conditions affecting food grain output.

  • Zydus Lifesciences and Gujarat Pipavav Port touch their 52-week highs of Rs 489.3 and Rs 115.5 respectively in a weak market. Zydus has risen 4.4% over the past month, while Gujarat Pipavav rose 9.6%.

  • Larsen & Toubro’s minerals & metals business secures two orders worth Rs 2,500-5,000 crore from the Vedanta group to set up a fertilizer plant for Hindustan Zinc and expand the capacity of an aluminium smelter complex at Korba, Chhattisgarh, for Bharat Aluminium Co.

  • Himachal Futuristic Communications (HFCL) is rising as it bags an order worth Rs 282.61 crore from the Gujarat Metro Rail Corporation to design, manufacture and supply telecommunication systems for the Surat Metro Rail Project.

  • Axis Direct maintains its ‘Buy’ rating on Dalmia Bharat and raises the target price to Rs 2,260 from Rs 2,120. This indicates an upside of 19.9%. The brokerage is optimistic about the company’s prospects due to increased production capacity, rising cement demand and cost optimisation measures. It expects the firm’s revenue to grow at a CAGR of 14% over FY22-25.

  • Hindustan Construction Co (HCC) is up more than 8% as it sells its entire stake in Baharampore-Farakka Highways, its wholly owned subsidiary, to Cube Highways, a Singapore-based company. The expected payout to be received by HCC is Rs 941 crore.

  • ICICI Bank and UltraTech Cement are rising ahead of their results on April 22 and April 28.

  • BofA Securities maintains its ‘Buy’ rating on HCL Technologies, while it has a 'Neutral' stance on Tata Consultancy Services & Info Edge and an ‘Underperform’ on Wipro and Tech Mahindra. The brokerage expects an incremental slowdown for the IT space in Q4FY23.

  • RHI Magnesita India's board will meet on April 1, 2023, to consider and approve fundraising through preferential allotment. They plan to issue equity shares for an aggregate amount not exceeding Rs 200 crore.

  • Reports suggest that 6.48 lakh shares (0.35% equity) of Mphasis, amounting to Rs 109.39 crore, change hands in a large trade.

  • G R Infraprojects is rising as it bags a project for the construction of tunnels worth Rs 587.6 crore for the Khurda-Bolangir new rail line project. It shows up in a screener for stocks with zero promoter pledges.

  • Share prices of Infosys, HCL Technologies and MphasiS fall over the week ahead of their Q4FY23 results in April.

  • Quess Corp is rising as 6.6 crore shares (4.5% equity) amounting to Rs 251 crore change hands in a large trade, according to reports.

  • Porinju Veliyath buys a 0.56% stake in Shalby for Rs 7.1 crore in a bulk deal on Tuesday.

  • NBCC bags an order worth Rs 100 crore to reconstruct and redevelop Small Industries Development Bank of India. It also receives an order for phase 2 development of an engineering institute in West Bengal for Rs 46.39 crore. The stock is up 2% in early trade today.

  • Jindal Stainless acquires a 49% stake in Indonesian nickel pig iron company, New Yaking, for $157 million (Rs 1,289.8 crore). The acquisition offers the benefits of backward integration to the company.

Riding High:

Largecap and midcap gainers today include Macrotech Developers Ltd. (866.50, 9.98%), Adani Enterprises Ltd. (1,740.40, 8.72%) and Indian Overseas Bank (22.75, 7.82%).

Downers:

Largecap and midcap losers today include Hindustan Zinc Ltd. (299.00, -9.06%), Adani Green Energy Ltd. (894.35, -4.41%) and Adani Total Gas Ltd. (871.70, -4.20%).

Movers and Shakers

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

Top high volume gainers on BSE included NBCC (India) Ltd. (35.25, 13.34%), Suzlon Energy Ltd. (7.95, 12.77%) and Cochin Shipyard Ltd. (459.00, 9.95%).

Top high volume losers on BSE were Symphony Ltd. (1,022.55, -5.75%), Bajaj Holdings & Investment Ltd. (5,866.75, -3.22%) and AstraZeneca Pharma India Ltd. (3,241.95, -3.14%).

Quess Corp Ltd. (357.50, 4.12%) was trading at 57.6 times of weekly average. Cholamandalam Financial Holdings Ltd. (525.00, 0.76%) and Borosil Renewables Ltd. (414.65, 6.16%) were trading with volumes 14.8 and 7.6 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

6 stocks overperformed with 52-week highs, while 48 stocks hit their 52-week lows.

Stocks touching their year highs included - Bosch Ltd. (18,977.15, 2.40%), Zydus Lifesciences Ltd. (490.35, 1.16%) and Godrej Consumer Products Ltd. (966.30, 0.80%).

Stocks making new 52 weeks lows included - ACC Ltd. (1,625.90, 0.74%) and Alembic Pharmaceuticals Ltd. (468.65, -2.07%).

34 stocks climbed above their 200 day SMA including NBCC (India) Ltd. (35.25, 13.34%) and Cochin Shipyard Ltd. (459.00, 9.95%). 11 stocks slipped below their 200 SMA including Hindustan Zinc Ltd. (299.00, -9.06%) and Bajaj Holdings & Investment Ltd. (5,866.75, -3.22%).

 
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The Baseline
28 Mar 2023
Five analyst picks this week
By Suhas Reddy

  1. Krishna Institute of Medical Sciences: Prabhudas Lilladher maintains its ‘Buy’ rating on this healthcare facilities company with a target price of Rs 1,660. This implies an upside of 22.6%. Analysts Param Desai and Sanketa Kohale are optimistic about the company as they expect its occupancy rates, profitability and scalability to rise in the coming quarters. They also see the firm’s plans to expand its operations in Karnataka and Maharashtra as key positives. 

The analysts expect an operational turnaround and a rise in occupancy rate in KIMS’ Kingsway unit in Nagpur as it plans to add more clinical talent and fill in therapeutic gaps like oncology radiation. They also anticipate the occupancy rate to increase in the firm’s new Sunshine unit in Secunderabad, Telangana.. “The new Sunshine unit will be moved to a new state-of-the-art facility in a prime location by the end of Q1FY24. This would attract clinical talent across other therapies,” they added. Desai and Kohale estimate the hospital chain’s revenue to grow at a CAGR of 21.9% over FY22-25.

  1. Shree Cements: ICICI Securities maintains its ‘Buy’ rating on this cement manufacturer and increases its target price to Rs 29,130 from Rs 27,550. This implies an upside of 15.6%. Analyst Harsh Mittal is positive about the company’s prospects on the back of strong capacity additions and increased demand due to the upcoming general elections. He sees the firm’s plan to increase the share of premium cement sales to 15% from 7% in 12-15 months, as a key positive. 

He also believes that the company will be able to improve its realisations with the help of cost-saving initiatives such as increased use of alternative fuels. “Consumption cost for alternate fuels is around Rs 1.3-1.5 per kilocalorie (kcal). Shree Cements’ current fuel consumption cost is Rs 2.3 per kcal at its current thermal substitution rate of 4.5%, and the company aims to increase it to 15% in the next 12 months,” he added. 

Mittal expects sales volumes to rise, and the firm’s expansion plans are on track. He expects the cement company’s net profit to grow at a CAGR of 18.3% over FY22-25.

  1. State Bank of India: Motilal Oswal gives a ‘Buy’ call to this bank with a target price of Rs 725, indicating an upside of 43.1%. Following an interactive session with State Bank of India’s Chairman Dinesh Kumar Kharato to discuss the bank’s growth and margin outlook, analysts Nitin Aggarwal and Yash Agarwal say, “The bank’s robust performance has been aided by strong loan growth, margin expansion and lower provisions.” 

They believe that a high mix of floating loans will continue to aid net interest income and earnings, even though the cost of deposits may increase. According to the analysts, manufacturing, export, renewables, batteries and EV segments are likely to be the key growth drivers for the bank. Aggarwal and Agarwal say, “Asset quality performance remains strong, with consistent improvements in headline asset quality ratios while the restructured book is under control at 0.9%.’

  1. Zydus Lifesciences: Sharekhan maintains its ‘Buy’ rating on this pharmaceutical company with a target price of Rs 572, implying an upside of 18.8%. Analysts at the brokerage believe the company’s growth will be driven by new product launches and volume growth in the US and India. They also expect input and freight costs to stabilise, leading to better profitability. 

The analysts believe the firm will outperform the Indian pharma market in the long term by penetrating newer geographies, launching new products and improving institutional sales. “The company has one of the largest pipelines of biosimilar products among Indian players, as it has so far launched 14 products in India,” they add. 

Sharekhan’s analysts anticipate strong demand in the US market on the back of robust product approvals in the recent past. The management is optimistic about maintaining the sales growth momentum in the US, driven by new launches, as well as volume expansion of existing products. The analysts expect the company’s net profit to grow at a CAGR of 12% over FY22-25.

  1. Jyothy Labs: Hem Securities initiates a ‘Buy’ call on this personal products company with a target price of Rs 225. This indicates an upside of 20.9%. In Q3FY23, the company’s profit and revenue have grown 75.4% YoY to Rs 67.4 crore and 15.7% YoY to Rs 627.9 crore respectively. Analyst Chinmay Bhandari says that the company has posted good results in the past few quarters despite input price inflation and slowdown in volume growth. 

According to Bhandari, brands such as Ujala and Henko continue to register strong growth, while Exo Bar and Pril increase their market share. The analyst believes that falling crude prices will help the company post better margins and points out that the management is trying to increase its distribution network of key brands in newer markets to improve its topline. 

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

(You can find all analyst picks here)