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The Baseline
15 Feb 2023
Chart of the week: The top Nifty sectoral indices have shifted between 2006 and now
By Abdullah Shah

The market has been under pressure over the past year with rising inflation amid slowing economic growth. However, Indian markets managed to outperform major global indices in 2022. In this edition of Chart of the Week, we take a look at the major Nifty sectora indices and their shift since 2006, tracking 14 years of data. 

During 2007-09, the Nifty Energy index was among the top and highest-rising indices in India. The index rose 97.6% and 58.1% in 2007 and 2009 respectively. In 2008, the index declined 47.4%, as the year witnessed the Great Recession. As of 2022, the Nifty Energy index has risen at a compound average growth rate (CAGR) of 9.9% over the past 16 years.

It was a particularly gruesome year for investors as the global financial crisis hit the world in 2008, causing all major indices to decline. However, in 2009, all major indices recovered, with the Nifty Auto and Nifty IT indices growing the most, by 186.1% and 155.2% respectively.

2011 was a tough year for the banking sector in particular, as Nifty Bank declined 32.4%, owing to concerns about rising bad debts caused by a slowdown in economic growth. However, the index recovered in the years after, rising by 58.8% in 2012 and 64.7% in 2014. The Nifty Bank index has a CAGR of 13.1% over the past 16 years. In 2011, Nifty 50 and Nifty 500 also fell 24.6% and 27.2% respectively, their second-highest decline after the crisis of 2008. 

However, Nifty FMCG rose by 8.6%, while Nifty Pharma fell the least among sectoral indices in 2011 as fast moving consumer goods (FMCG) and Pharmaceuticals are considered to be defensive sectors, which tend to be stable in a falling market. Owing to this, Nifty FMCG has a CAGR of 14.3% over the past 16 years, while Nifty Pharma has grown at a CAGR of 9.9%.

Nifty Energy and Nifty Bank witnessed a resurgence during 2016-19 and 2017 was especially good, as they rose 37.7% and 39.3% respectively. The Nifty IT index ended the decade till 2019 on a strong note and started the 2020s equally strong. It rose 55.6% in 2020 and 58.2% in 2021. However, 2022 was a difficult year owing to the rising inflation and interest rates all around the world and it declined 26%. 

In 2022, investors switched to more domestic sectors which are not affected by global issues, and as a result Nifty PSU Bank witnessed a rise of 70.7%. With several macroeconomic factors at play in 2023, investors will have to wait and see how the indices fare going forward. 

 
Trendlyne Marketwatch
Trendlyne Marketwatch
15 Feb 2023
Market closes higher, Aster DM Healthcare’s Q3 net profit falls 6% YoY to Rs 139.4 crore

Trendlyne Analysis

Nifty 50 closed at 18,015.85 (86, 0.5%) , BSE Sensex closed at 61,275.09 (242.8, 0.4%) while the broader Nifty 500 closed at 15,039.65 (70.8, 0.5%). Market breadth is in the green. Of the 1,956 stocks traded today, 1,024 were gainers and 867 were losers.

Nifty 50 rose over 90 points and closed above 18,000 mark on a volatile day of trade. According to trade statistics released today, India's trade deficit in January 2023 remained flat at USD 17.5 billion YoY and declined by USD 6 billion MoM.

Nifty Midcap 100 and Nifty Smallcap 100 closed in the green, following the benchmark index closing higher. Nifty Realty recovered from the day’s low and closed over 1.2% higher, led by Indiabulls Real Estate and DLF. Nifty IT also closed in the green, following the tech-heavy Nasdaq 100 index, which closed 0.71% higher on Tuesday.

In international markets, major Asian indices closed in the red. Helped by expansion in Eurozone GDP and a strong job market, European stocks edged higher, narrowly avoiding recession worries. US indices futures trade in the red, indicating a negative start for the day.

  • Metro Brands beats Bata India in YoY & QoQ revenue growth, annual RoE and one-year price change. But it lags in YoY and QoQ net profit growth, PE ratio, FII holdings and average broker target upside.

  • India’s merchandise exports fell 6.6% YoY to $32.9 billion in January. Imports stood at $50.7 billion and the trade deficit narrowed to $17.8 billion from $23.8 billion in December 2022.

  • Power Finance Corp, Campus Activewear and EIH’s operating profit and operating margin rise YoY in Q3FY23.

  • Aster DM Healthcare’s Q3FY23 net profit falls 6% YoY to Rs 139.4 crore. Expenses related to medicine purchases rise and revenue is up 21% across hospitals and retail pharmacy segments. However, revenue from clinics fell YoY in Q3. It shows up in a screener of stocks with strong annual EPS growth.

  • IT stocks like Tech Mahindra, LTIMindtree, Persistent Systems, L&T Technology Services and HCL Technologies are rising in trade. All constituents of the broader sectoral index Nifty IT are also trading in the green.

  • Ambuja Cements, Dixon Technologies (India) and Shree Renuka Sugars underperform their industry by 29.6%, 26.9% and 23.6%, respectively, in the past month.

  • NSE signs a data licensing agreement with derivatives marketplace CME Group for WTI crude oil and natural gas contracts.

  • ITD Cementation India is rising as it bags an order worth Rs 833 crore for the engineering, procurement and construction of the Thal Sena Bhawan in Delhi Cantt-10. The company has secured orders worth Rs 8,800 crore since April 2022.

  • ICICI Securities downgrades its rating on Bharat Forge to ‘Hold’ from ‘Add’ and lowers the target price to Rs 894 from Rs 904. However, this is an upside of 7.5% from the current market price. The brokerage cites weakness in the company’s overseas subsidiary’s performance but remains positive due to the domestic commercial vehicle upcycle.

  • Torrent Power is rising with high volumes and gains in trade as it logs an increase in net profit by 86% YoY to Rs 684.6 crore in Q3FY23. The company reports a fall in fuel and raw material costs but electrical energy purchase expenses shoot up 2.3X. It shows up in a screener of strong momentum stocks.

  • Abneesh Roy, Executive Director at Nuvama Institutional Equities, says there has been a slight slowdown in urban discretionary consumption in Q3 due to the loss of jobs, muted hiring in the IT space and rising costs. He expects selective consumption to trend in Q4. Akshay Dsouza, Chief of Growth & Insights at Bizom, says the FMCG sector will see decent growth as summer approaches.

  • Siemens is rising as its Q3FY23 net profit beats analyst estimates along with robust order inflows and execution. However, Nomura maintains a ‘Neutral’ rating on the stock, according to reports. The company ranks high on Trendlyne’s checklist with a score of 65.2%.

  • Computer Age Management Services is rising as it receives an in-principle authorisation from the Reserve Bank of India to operate as a payment aggregator. The stock shows up in a screener for companies with improving cash flows from operations over the past two years.

  • Indian rupee depreciates to the lowest level since January 4, to 82.85 against the US dollar in early trade today, on expectations of more rate hikes by the US Federal Reserve.

  • Bata India is falling despite its Q3FY23 net profit rising 15% YoY to Rs 83.2 crore, led by a sharp fall in raw material costs and inventory expenses. Revenue rises 7% YoY, driven by portfolio expansion and premiumisation. The stock shows up in a screener for companies with strong annual EPS growth.

  • Biocon is falling as it posts a net loss of Rs 41.8 crore in Q3FY23. However, revenue increases by 35.3% YoY with revenue from APIs & generic formulations, biosimilars and research services segments. The company shows up in a screener of stocks with declining return on capital employed (RoCE) in the past two years.

  • Morgan Stanley maintains its ‘Equal-Weight’ rating on Eicher Motors with a target price of Rs 3,553. The brokerage says the company has gained market share after the launch of Hunter and expects it to peak in 2023. It adds that Eicher benefits from the decline in commodity prices and price hikes.

  • Glenmark Pharmaceuticals is falling in trade but foreign brokerage Nomura increases its target price by 50%. The company's net profit grows 21.1% YoY to Rs 290.7 crore in Q3FY23. The stock ranks high on the Trendlyne Checklist score.

  • Oil and Natural Gas Corp, Biocon and Bosch's Q3FY23 net profits fall 13.9%, 189.1% and 14.4% QoQ respectively.

  • Gujarat Fluorochemicals, Sundaram Finance and Thermax outperform the Nifty 50 index over the week post their Q3FY23 results.

  • Vodafone Idea’s net loss increases to Rs 7,990 crore in Q3FY23 against Rs 7,595.5 crore in Q2FY23. Its average revenue per user increases by 3.1% QoQ and net debt is up 1.2% QoQ. It shows up in a screener of stocks with low piotroski scores.

  • Apollo Hospitals’ Q3FY23 net profit is down 32.8% YoY to Rs 153.46 crore on increasing costs. Revenue expands 17% YoY with growth from segments like healthcare services, digital health & pharmacy distribution but the retail health and diagnostics segment’s revenue falls in Q3. The stock shows up in a screener with consistent high returns in the past five years.

Riding High:

Largecap and midcap gainers today include General Insurance Corporation of India (156.75, 10.70%), Torrent Power Ltd. (504.40, 10.37%) and Tech Mahindra Ltd. (1,071.40, 5.86%).

Downers:

Largecap and midcap losers today include Adani Transmission Ltd. (1,017.45, -5.00%), Adani Total Gas Ltd. (1,076.40, -5.00%) and Adani Green Energy Ltd. (621.00, -5.00%).

Movers and Shakers

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

Top high volume gainers on BSE included Finolex Cables Ltd. (671.60, 12.35%), Brightcom Group Ltd. (26.45, 11.60%) and General Insurance Corporation of India (156.75, 10.70%).

Top high volume losers on BSE were TCNS Clothing Co. Ltd. (436.85, -6.56%), Uflex Ltd. (484.05, -5.38%) and Bharat Forge Ltd. (835.70, -4.33%).

Torrent Power Ltd. (504.40, 10.37%) was trading at 39.5 times of weekly average. Tejas Networks Ltd. (590.25, 10.11%) and PI Industries Ltd. (3,121.95, 2.88%) were trading with volumes 19.7 and 11.7 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

4 stocks overperformed with 52 week highs, while 19 stocks tanked below their 52 week lows.

Stocks touching their year highs included - Cummins India Ltd. (1,628.80, 1.82%), Finolex Cables Ltd. (671.60, 12.35%) and Siemens Ltd. (3,229.40, 3.34%).

Stocks making new 52 weeks lows included - Adani Transmission Ltd. (1,017.45, -5.00%) and Alembic Pharmaceuticals Ltd. (501.40, 0.74%).

14 stocks climbed above their 200 day SMA including Torrent Power Ltd. (504.40, 10.37%) and Tejas Networks Ltd. (590.25, 10.11%). 16 stocks slipped below their 200 SMA including Hikal Ltd. (310.25, -4.76%) and Multi Commodity Exchange of India Ltd. (1,348.55, -4.06%).

 
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The Baseline
14 Feb 2023
Five infra picks from analysts this week
By Suhas Reddy

This week, for analyst picks, we take a look at companies from the utilities, cement & construction sectors with revenue and profit YoY growth above 10%.

  1. Mahanagar Gas: ICICI Securities maintains its ‘Buy’ rating on this city gas distribution company and increases the target price to Rs 1,050, implying an upside of 12.3%. In Q3FY23, the firm’s net profit jumped over 3X YoY to Rs 172.1 crore and revenue rose 55.2% YoY to Rs 1,582.3 crore.

Analysts Probal Sen and Hardik Solanki write that the firm’s volumes have fallen on a YoY basis, but its profitability is better than expected. They attribute this to aggressive price hikes the company took. Going forward, analysts expect volumes to rise as gas costs will likely reduce due to the Kirit Parikh Committee recommended price implementation. They expect “volumes and margins to see an improvement over FY24-25”. 

Sen and Hardik are optimistic about the company’s prospects for the next 12-18 months. They expect the company’s net profit to grow at a CAGR of 19% over FY23-25.  

  1. Praj Industries: Axis Direct maintains its ‘Buy’ rating on this construction & engineering company with a target price of Rs 500. This indicates an upside of 37.3%. In Q3FY23, the company’s net profit grew 68.2% YoY to Rs 62.3 crore and revenue increased 55.4% YoY to Rs 910 crore. 

Analyst Prathamesh Sawant says that the company’s EBITDA margin and net profit beat his estimates due to the moderation in sleet prices. He adds that the completion of the old fixed cost order in Q3 has helped boost margins. 

Sawant notes, “Praj Industries is the pure equity play on India Ethanol Revolution and now marching its footprints globally”. As the company has begun to expand its engineering services across growth industries like compressed bio-gas, green hydrogen, ethanol production, and others, the analyst believes its growth prospects will improve. He anticipates the firm’s net profit to grow at a CAGR of 29.2% over FY23-25. 

  1. Dalmia Bharat: Motilal Oswal maintains its ‘Buy’ rating on this cement & cement products manufacturer with a target price of Rs 2,120. This implies an upside of 10.5%. In Q3FY23, the company’s net profit jumped 98.1% YoY to Rs 204 crore and revenue rose 22.9% YoY to Rs 3,355 crore. 

Analysts Sanjiv Kumar Singh and Mudit Agarwal are upbeat about the firm’s Q3 performance as it beat their net profit estimates by a healthy margin. They attribute the improvement in profitability to pricing recovery in eastern India and better cost controls. They add that the company is trading at an attractive valuation.

Kumar and Singh believe that Dalmia Bharat has good long-term prospects due to its diversified capacity expansion plan, dominant presence in the high-growth market of east India and its focus on sustainability. According to them, “The company maintains its target of delivering 1.5x demand growth than the industry average in FY23.” The analysts expect the company’s revenue to grow at a CAGR of 10.6% over FY23-25. 

  1. Tata Power: ICICI Securities maintains a ‘Buy’ call on this utilities company with a target price of Rs 262, indicating an upside of 28.8%. In Q3FY23, Tata Power’s net profit increased by 121.9% YoY to Rs 945 crore, while its revenue increased by 30.7% YoY to Rs 14,402 crore. Analysts Rahul Modi and Anshuman Ashit say, “Tata Power’s strong quarterly results continued in Q3FY23 as well, sustained by higher profits from the coal and Mundra businesses, and robust performance of distribution businesses.” 

The company had planned a capex of Rs 8,000-10,000 crore, of which Rs 3,000 crore was incurred in H1FY23. The analysts believe that the utilities company has a strong long-term potential, especially its renewables and distribution businesses which can outperform. They also believe that Tata Power is among the best-placed private players in the power sector, with businesses across the value chain and backward integration. 

  1. Star Cement: Bob Capital Market maintains a ‘Buy’ call on this small-cap cement manufacturer with a target price of Rs 138. This indicates an upside of 25.4%. In Q3FY23, the company’s net profit grew 20.7% YoY to Rs 52.9 crore, while its revenue increased 12.3% YoY to Rs 631.3 crore. 

Analysts Milind Raginwar and Yash Thakur state that the revenue growth is backed by higher realisations (up 8% YoY to Rs 6,823 per tonne) and volumes (up 5% YoY to 0.9 metric tonnes), indicating healthy demand in key markets. They further add that the cement manufacturer had hiked price in mid-December and its full impact will be reflected in Q4FY23. 

The analysts “like Star Cement for its strong presence in the remunerative northeast market, plans to de-risk revenue, and light debt burden despite capex”.

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

(You can find all analyst picks here)

 
Trendlyne Marketwatch
Trendlyne Marketwatch
14 Feb 2023
Market closes higher, Bharat Forge's Q3FY23 net profit falls 81.3% YoY to Rs 78.7 crore

Trendlyne Analysis

Nifty 50 closed at 17,929.85 (159.0, 0.9%), BSE Sensex closed at 61,032.26 (600.4, 1.0%) while the broader Nifty 500 closed at 14,968.90 (68.4, 0.5%). Of the 1,951 stocks traded today, 600 were in the positive territory and 1,310 were negative.

Nifty 50 rose over 150 points and closed in the green, with the volatility index, India VIX, falling below the 14% mark. Adani Enterprises rose nearly 2% in trade after it posted Q3FY23 results. But five Adani Group companies extended their fall from Monday and closed at their lower circuits. 

Nifty Midcap 100 and Nifty Smallcap 100 closed in the red, despite the benchmark index closing higher. Nifty Metal recovered from its day’s low and closed over 1.4% higher led by Steel Authority of India, which rose after announcing its Q3FY23 earnings. Nifty IT also closed in the green, following the tech-heavy Nasdaq 100 index, which closed 1.6% higher on Monday.  

In international markets, major Asian indices closed in the green amid positive global cues. European stocks edged higher, helped by strong UK labor market data despite the country's economic woes. US indices futures trade flat as investors look ahead to the US inflation print, scheduled to be released later today.

  • Money flow index(MFI) indicates that stocks like KPR Mill, Blue Star, Procter & Gamble Health and Cummins India are in the overbought zone.

  • Eicher Motorsis falling despite its Q3FY23 net profit rising 62.4% YoY to Rs 740.8 crore and revenue growing 29.2% YoY. The company shows up in a screener for stocks in the PE Buy zone with a high durability score and rising momentum score.

  • Adani Enterprises' PAT up 410% YoY to Rs 740 crore in Q3FY23. Revenue increases 41.9% YoY.

  • Bharat Forge is falling as its consolidated net profit falls 81.3% YoY to Rs 78.7 crore in Q3FY23. Raw material costs, employee benefit expenses and finance costs cut down profitability. However, revenue grows 40% YoY and the stock shows up in a screener with improving net cash flow for the past two years.

  • National Fertilizers is rising as it posts a net profit of Rs 554 crore in Q3FY23, compared to a loss of Rs 23.1 crore in Q2FY23. Revenue jumps 99.1% YoY led by robust growth in its fertilizers trading and production segments. The stock shows up in a screener for companies with revenue increasing sequentially for the past three quarters.

  • Ipca Laboratories is falling as its net profit falls 45.2% YoY to Rs 107.8 crore in Q3FY23. This is because of an increase in inventory, finance and other expenses. Revenue grows 8.1% YoY and the stock ranks high on the Trendlyne Checklist score.

  • HDFC Securities maintains its ‘Buy’ rating on Info Edge and raises the target price to Rs 4,600 from Rs 4,525. This implies an upside of 32.1%. The brokerage remains positive on the firm’s growth prospects, given its dominant online traffic share and long-term contracts.

  • Aurobindo Pharma's Unit-IX, an API intermediate facility in Sangareddy district, Telangana, that was under inspection by US FDA has been classified as Voluntary Action Indicated.

  • Varun Beverages, Relaxo Footwears and KPR Mill outperform the Nifty 50 indexover the week post their Q3FY23 results.

  • India’s Wholesale Price Index (WPI) inflation declines to a 24-month low of 4.73% in January compared to 4.95% in December 2022. The decline is contributed by a fall in the prices of mineral oils, chemicals & chemical products, and textiles, among others.

  • Finolex Cables trades near its 52-week high as it reports decent earnings in Q3FY23. Net profit grows 42% YoY and revenue is up 18%. Reports suggest that foreign brokerage Jefferies has retained its ‘Buy’ rating on the stock with a target price upside of 26%.

  • VS Mani, Executive Director & Global CFO at Glenmark Pharmaceuticals, says the company’s turnover could be around Rs 3,400 crore in Q4FY23. He adds that Glenmark Pharma has a growth target of 6% for FY23.

  • Shree Cements' Whole-Time Director Prakash Narayan Chhangani resigns from the post to pursue a career outside the organisation. His resignation is effective from February 13, 2023.

  • Realty stocks like Prestige Estates Projects, Oberoi Realty, DLF and Brigade Enterprises are falling in trade. The broader sectoral index Nifty Realty is also trading in the red.

  • Grindwell Norton, Gujarat State Petronet and Gujarat Gas’ Q3FY23 net profits fall 11%, 17.6% and 8.1% QoQ respectively.

  • IT stocks like L&T Technology Services, HCL Technologies, LTIMindtree, Tech Mahindra and Infosys are rising in trade. All constituents of the broader sectoral index Nifty IT are also trading in the green.

  • India’s CPI inflation rises to 6.52% in January compared to 5.72% in December 2022. This is because of the surge in food prices and food inflation at 5.9%.

  • Promoter Hulst B V sells a 9.8% stake (60 lakh shares) worth Rs 2,430 crore in Coforge in a bulk deal on Monday. Aditya Birla Sun Life Mutual Fund, Kuwait Investment Authority and Nomura India Inv pick up the shares.

  • FSN E-commerce Ventures (Nykaa) is falling as its Q3FY23 net profit drops 70.7% YoY to Rs 8.2 crore on higher purchases of traded goods and other expenses. Revenue rises 33.2% YoY as gross merchandising value sees growth across segments. The stock shows up in a screener for companies with revenue rising sequentially over the past three quarters.

  • IRB Infrastructure Developers is falling despite its net profit rising 94.5% YoY to Rs 141.3 crore in Q3FY23. Revenue increases across all segments but road and site expenses surge more than 70%. It shows up in a screener of stocks with growth in quarterly net profit and margin YoY.

  • Steel Authority of India’s Q3FY23 net profit declines 64.5% YoY to Rs 542.2 crore due to higher cost of materials and finance costs. Revenue marginally falls by 0.8% YoY despite crude steel production and sales volume rising YoY. The stock shows up in a screener for companies with declining net cash flows.

Riding High:

Largecap and midcap gainers today include Oil India Ltd. (257.80, 6.97%), UPL Ltd. (761.60, 3.79%) and ITC Ltd. (386.45, 3.27%).

Downers:

Largecap and midcap losers today include Star Health and Allied Insurance Company Ltd. (506.15, -5.54%), Adani Power Ltd. (148.20, -5.00%) and Adani Green Energy Ltd. (653.65, -5.00%).

Volume Shockers

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

Top high volume gainers on BSE included Oil India Ltd. (257.80, 6.97%), Finolex Cables Ltd. (597.80, 5.75%) and Rashtriya Chemicals & Fertilizers Ltd. (112.40, 4.80%).

Top high volume losers on BSE were Allcargo Logistics Ltd. (364.55, -10.18%), RHI Magnesita India Ltd. (692.10, -7.58%) and Indiabulls Real Estate Ltd. (55.85, -7.46%).

Phoenix Mills Ltd. (1,302.35, -3.33%) was trading at 11.8 times of weekly average. Cholamandalam Financial Holdings Ltd. (605.65, -1.66%) and Bosch Ltd. (17,412.40, 0.02%) were trading with volumes 8.8 and 5.8 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

5 stocks made 52-week highs, while 22 stocks were underachievers and hit their 52-week lows.

Stocks touching their year highs included - Cera Sanitaryware Ltd. (5,927.95, -2.92%), Cummins India Ltd. (1,599.75, 0.28%) and Finolex Cables Ltd. (597.80, 5.75%).

Stocks making new 52 weeks lows included - Adani Transmission Ltd. (1,071.00, -5.00%) and Alembic Pharmaceuticals Ltd. (498.00, -3.28%).

8 stocks climbed above their 200 day SMA including KIOCL Ltd. (200.75, 1.47%) and Orient Electric Ltd. (273.10, 1.26%). 23 stocks slipped below their 200 SMA including Allcargo Logistics Ltd. (364.55, -10.18%) and RHI Magnesita India Ltd. (692.10, -7.58%).

 
Trendlyne Marketwatch
Trendlyne Marketwatch
13 Feb 2023
Market closes lower, ICICI Direct maintains 'Buy' on Mahindra & Mahindra

Trendlyne Analysis

Nifty 50closed at 17,770.90 (-85.6, -0.5%), BSE Sensexclosed at 60,431.84 (-250.9, -0.4%) while the broader Nifty 500closed at 14,900.50 (-115.4, -0.8%). Of the 1,974 stocks traded today, 553 were gainers and 1,372 were losers.

Indian indices recovered from their day’s lows but still closed in the red. The IIP data released on Friday indicated IIP growth eased to 4.3% in Dec 2022 from 7.3% in Nov 2022. Mining output rose by 9.8% and power generation increased by 10.4% in January.
Adani Group companies closed lower while Adani Enterprises fell 7.2% in trade today after Moody’s downgrade of four group companies.

Nifty Midcap 100 and Nifty Smallcap 100 closed in the red, following the benchmark index closing lower. Nifty Media closed over 2.4% lower led by Zee Entertainment Enterprise. However, Nifty FMCG closed flat. Other major sectoral indices closed in the red. Nifty IT also closed in the red, in line with the tech-heavy Nasdaq 100 futures, which traded lower.

Major Asian indices closed in the red amid weak global cues. European indices also traded lower, tailing Asian indices, despite US indices futures trading in the green. US is set to release its CPI data on Tuesday. Investors expect the CPI to trend downwards, and any increase in CPI will spook the markets.

  • Coforgesees a short buildup in its February 23 future series as its open interest rises 32.7% with a put-call ratio of 0.35.

  • Bharat Heavy Electricals is falling despite an increase in net profit by 56.5% YoY to Rs 42.28 crore. However, revenue increases marginally by 0.4% YoY. It shows up in a screener of companies with high TTM EPS growth.

  • Rail Vikas Nigam, Engineers Indiaand IDFCare trading below their third support or S3 levelas market trades lower.

  • Borosil Renewables is falling as its Q3FY23 net profit falls 50.9% YoY to Rs 22.5 crore and revenue dips 4.2% YoY. The fall in profit is due to an increase in materials consumed, finance, and power and fuel cost. The company shows up in a screener of stocks with improving cash flow from operation for the past two years.

  • Apollo Hospitals, Siemensand Bharat Forgerise 3.4%, 3.4% and 3.1% respectively over the past week, ahead of their Q3FY23 results tomorrow.

  • According to data from the Society of Indian Automobile Manufacturers (SIAM), sales of passenger vehicles rise 17.2% YoY to 2.98 lakh units in January and two-wheeler sales increase 3.5% YoY to 11.8 lakh units.

  • ICICI Direct maintains its rating on Mahindra & Mahindra at ‘Buy’ and raises the target price to Rs 1,665 from Rs 1,590, indicating an upside of 22%. The brokerage believes that the company's renewed focus on efficient capital allocation and aggressive EV launch pipeline are structural positives. It anticipates the firm’s sales to grow at a CAGR of 24% over FY22-25.

  • Balkrishna Industries, Metropolis Healthcare, Chemplast Sanmar and RattanIndia Enterprises declare Q3FY23 results in the past week; their net profit falls QoQ and YoY for the quarter.

  • Glenmark Pharmaceuticals is rising as its net profit improves 21.1% YoY to Rs 290.7 crore in Q3FY23. An increase in sales from Latin America, Middle East and African regions has helped the revenue grow 8%. The company shows up in a screener of stocks effectively using its capital to generate profit.

  • Adani Ports & Special Economic Zone and Ambuja Cements will be excluded from NSE’s Additional Survey Measure (ASM) framework, effective today. These companies have been under the ASM framework since February 3 amid a huge sell-off as a result of the Hindenburg Research Report.

  • J K Cement, Finolex Industries and One97 Communications (Paytm) outperform the Nifty 50 index over the week post their Q3FY23 results.

  • Media stocks like TV18 Broadcast, Zee Entertainment Enterprises and Sun TV Network are declining in trade. All constituents of the broader Nifty Media index are trading in the red.

  • Abbott India's net profit grows 24% YoY to Rs 246.8 crore in Q3FY23, while revenue rises 8.3% YoY. EBITDA margin increases by 190 bps YoY. The company shows up in a screener of stocks with improving net profit and profit margin (YoY).

  • Reports suggest that 34.36 lakh shares of DLF, amounting to Rs 124.2 crore, change hands via a block deal.

  • Oil India rises as its Q3FY23 net profit grows 76% YoY to 2,284.4 crore and revenue increases 31.2% YoY to Rs 10,712.1 crore. Its Board declares a second interim dividend of Rs 10 per share. It shows up in a screener for stocks in the PE buy zone, with reasonable durability and rising momentum score.

  • Thermax is rising as it wins an order worth Rs 251.7 crore for the renovation and modernization of a thermal power station in Bankura, West Bengal. It shows up in a screener of companies with low debt.

  • Indian rupee depreciates to 82.68 from the previous close of 82.50 against the US dollar in early trade due to a strong dollar and muted trend of domestic equities.

  • PB Fintech is rising after its net loss narrowed to Rs 87 crore in Q3FY23, against Rs 298 crore in Q3FY22. The company says that it will achieve positive EBITDA by Q4FY23. It shows up in a screener for stocks with increasing revenue for the past two quarters.

  • IT stocks like Coforge, Persistent Systems, LTIMindtree and Infosys are falling in trade. The broader sectoral index Nifty IT is also trading in the red.

  • PSU Bank stocks like State Bank of India, Punjab & Sind Bank, Canara Bank and Indian Overseas Bank are falling in trade. The broader sectoral index Nifty PSU Bank is also trading in the red.

  • BEML wins an order worth Rs 377.98 crore for the supply of track-width mine ploughs for Arjun MBT, an army tank. The order is likely to be completed by January 2026. The stock shows up in a screener of stocks with improving RoCE for the past two years.

  • Kotak Mahindra Bank enters into an agreement to acquire a 100% stake in Sonata Finance, a microfinance institution, for Rs 537 crore. The bank will use Sonata’s distribution network to provide better banking services to its customers. The bank ranks high on the Trendlyne Checklist score.

Riding High:

Largecap and midcap gainers today include Oil India Ltd. (241.00, 7.81%), Gland Pharma Ltd. (1,365.00, 3.86%) and Titan Company Ltd. (2,519.05, 2.05%).

Downers:

Largecap and midcap losers today include Balkrishna Industries Ltd. (2,052.25, -11.09%), Info Edge (India) Ltd. (3,463.85, -9.18%) and Lupin Ltd. (675.15, -8.41%).

Movers and Shakers

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

Top high volume gainers on BSE included Sun Pharma Advanced Research Company Ltd. (220.75, 17.11%), Oil India Ltd. (241.00, 7.81%) and Glenmark Pharmaceuticals Ltd. (422.60, 5.54%).

Top high volume losers on BSE were City Union Bank Ltd. (134.90, -15.71%), Balkrishna Industries Ltd. (2,052.25, -11.09%) and Info Edge (India) Ltd. (3,463.85, -9.18%).

Galaxy Surfactants Ltd. (2,430.00, 4.93%) was trading at 26.0 times of weekly average. Coforge Ltd. (4,032.25, -6.97%) and Godrej Industries Ltd. (428.55, 0.34%) were trading with volumes 25.5 and 20.1 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

8 stocks hit their 52-week highs, while 11 stocks were underachievers and hit their 52-week lows.

Stocks touching their year highs included - Blue Star Ltd. (1,365.25, -0.83%), Cera Sanitaryware Ltd. (6,080.00, 0.74%) and Sonata Software Ltd. (658.30, 0.05%).

Stocks making new 52 weeks lows included - Adani Transmission Ltd. (1,127.35, -5.00%) and Alembic Pharmaceuticals Ltd. (514.90, -1.86%).

7 stocks climbed above their 200 day SMA including Vedant Fashions Ltd. (1,274.00, 1.23%) and Ajanta Pharma Ltd. (1,219.90, 0.98%). 19 stocks slipped below their 200 SMA including Balkrishna Industries Ltd. (2,052.25, -11.09%) and Lupin Ltd. (675.15, -8.41%).

 
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The Baseline
10 Feb 2023
Five Interesting Stocks Today
  1. Cummins India: This industrial machinery company's stock rose 7% and hit its all-time high of Rs 1,618 on Thursday as its Q3FY23 net profit increased 65.9% YoY to Rs 413.8 crore. Both revenue and net profit beat Trendlyne’s forecaster estimates by 8% and 52% respectively. An increase in domestic and export sales has helped revenue grow 25.8% YoY. The company is in a screener of stocks with improving QoQ revenue for the past three quarters. 

Cummins India’s revenue from the engines segment, which contributes to 77.7% of its revenue, has grown by 25.9% YoY. The company stands to benefit from the government’s estimated outlay of Rs 2.4 lakh crore in FY24 in the railways segment. Ashwath Ram, Managing Director of the company, states, “The recent budget announced by the Government of India has a stronger outlay for the infrastructure sector, including railways, which is expected to create strong demand from various segments in the domestic market.” 

The company’s board of directors has also approved an interim dividend of Rs 12 per share on 27.7 crore shares. Record date for the payment of the dividend is set for February 21. 

  1. InterGlobe Aviation (Indigo): This airline stock’s net profit has zoomed 10X YoY to Rs 1,422.6 crore in Q3FY23. The stock closed 2% above its opening price since its declaration of results last Thursday. The surge in profit is because of reducing fuel costs –  aircraft fuel expenses have fallen 7.6% QoQ as jet fuel prices fell globally in Q3FY23. Another cost advantage Indigo has is the dip in lease charges as a percentage of revenue. In Q3FY23, lease charges fell to 12.9% of revenues, compared to 19.2% in Q3FY22. This is because Indigo’s number of fuel-efficient aircraft has gone up. As of December 2022, Indigo has 238 new engine (Neo) aircraft – which are designed to accommodate more passengers with the same fuel costs – out of the total 302. 

Indigo’s domestic and international demand has been high in Q3. It aims to increase the international ASK (available seat per kilometre) mix to 40% over the next 3-5 years. A report from ICICI Securities suggests that the international ASK will increase more than 40% YoY in Q4FY23. The management, in its earnings call, said that Indigo is operating at 105% of its pre-Covid capacity. According to CEO Pieter Elbers, Q3 performance has been strong operationally and financially, as demand for air travel improved. Indigo expects capacity to increase by 15% in FY24. However, new airlines might eat into the current market share of 55%. 

As of February, 17 analysts recommend a ‘Buy’ on the stock. ICICI Securities and Prabhudas Lilladher have increased their target price for the stock by more than 15% after the airline’s robust performance in Q3FY23. In the past three months, the stock has gained 15% and shows up in a screener with a high momentum score.

  1. Varun Beverages: This non-alcoholic beverage company rose over 5% on Tuesday after it posted strong Q4CY22 results. Varun Beverages’ (VBL’s) net profit has jumped 2.5x YoY to Rs 74.8 crore and beat its Forecaster estimates by over 25%. Its revenue increased by 27.7% YoY in Q4CY22 thanks to strong volume growth and higher realisations. With strong Q4CY22 results, the company features in a screener of companies with annual net profit improving for the past two years.

VBL’s profit has risen as net realisation per unit improved through strategic measures, including selective price hikes, rationalised discounts and incentives, and improved product mix. This was also backed by energy drink Sting, which has a higher realisation. Commenting on the performance of the company, Ravi Jaipuria, Chairman of Varun Beverages said that a strong recovery in demand post-pandemic and continued efforts towards expanding the distribution network across markets resulted in the growth of sales volume.

Axis Direct has maintained its ‘Buy’ rating on the stock post VBL’s Q4CY22 results announcement. The brokerage expects the company to perform well in terms of expansion in its distribution, growth in international geographies, and focus on expanding the high-margin energy drink, Sting, across outlets.

Meanwhile, ICICI Securities maintains its ‘Hold’ rating but increases the target price to Rs 1,225. Though the brokerage is positive on growth prospects, it says that it would be difficult for the company to grow at a fast pace on a high base in CY23.

  1. Vinati Organics: This specialty chemicals stock released its Q3FY23results on February 6. Vinati Organics’ revenue has grown by 38% YoY to Rs 508 crore but fell 10% QoQ owing to low volumes in the ATBS chemical, which constitutes ~40-50% of overall revenue. The capacity is expected to expand from 40,000 MT to 60,000 MT for ATBS and the new chemical portfolio.  The upcoming commissioning of ATBS, MEHQ, Guaiacol and Iso Amylene plants will aid revenue growth. Post expansion, the revenue is expected to grow by 23% to Rs 2,630 crore. EBITDA margin has seen an expansion of 1,072 bps YoY, backed by increased pricing power for its products.

Vinati Organics has not seen much growth post results. ICICI Direct and HDFC Securities have downgraded their target price owing to overvaluation. The stock shows up in our DVM scorescreener as an expensive performer.

ICICI Direct says the IBB chemical, which contributes to approximately 30% of the company’s revenues, is seeing a revival in demand and an increase in market share. Revenue numbers are below the estimated levels, whereas EBITDA and PAT margins have exceeded expectations. ICICI Direct has a ‘Hold’ rating on the stock.

According to HDFC Securities, the company’s shift in revenue mix towards lower margin products (IBB) will hamper EBITDA margin expansion going forward.  HDFC has a ‘Sell’ rating on the stock.

  1. Blue Star: This consumer electronics manufacturer has grown over 12% since announcing its Q3FY23 results on January 31, which beat the street’s estimates. Its net profit grew 23% YoY to Rs 58.4 crore, beating Trendlyne’s Forecaster estimates by 3.3%. The management attributes this improvement in profitability to a healthy order inflow, robust demand and a better product mix. Due to this strong Q3 performance, the stock is trading above its short, medium and long-term moving averages. 

The company’s largest segment, electromechanical projects & commercial air conditioning systems, has grown 20.5% YoY and contributed 55.9% to the consolidated revenue. This growth was aided by healthy order inflow. BoB Capital Markets expects this segment’s order book to see greater traction in the near term, given the Centre’s push to increase the infrastructure capex. The brokerage also anticipates a rise in orders from the railway electrification business vertical.

The unitary products segment, which primarily produces room air conditioners and commercial refrigeration products, saw its EBIT margins expand by 100 bps YoY to 7.4%. Margins improved on the back of a better product mix and sustained demand for commercial refrigeration products. 

The company began commercial production at its new facility in Sri City, Andhra Pradesh in January 2023, just in time to ramp up for the summer season. The new facility will manufacture 3 lakh AC units and will reach 12 lakh units annually by 2027. The management is optimistic about the near-term demand growth given the onset of summer. It has also guided to increase its market share in the room air conditioners business to 15% in FY25 from 13.25% currently.  

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
10 Feb 2023
Which stocks did superstar investors buy in Q3FY23?
By Abhiraj Panchal

Many investors closely track the portfolios of superstars to identify interesting sectors and stocks to invest in. We take a look at some of the stocks superstar investors bought or added more of, during Q3FY23.

Most superstar investors didn’t see major QoQ changes in their net worth in Q3FY23, except Dolly Khanna. Her net worth fell by 21.4% QoQ to Rs 409.74 crore during the quarter. 

Sunil Singhania and Vijay Kedia’s net worth fell by 5.1% and 5.3% respectively, while Porinju Veliyath’s net worth fell by 1.3%. Ashish Kacholia’s net worth rose by 1.6% and Rakesh Jhunjhunwala's portfolio value rose marginally.

These superstars have varied investing interests, as shown in the chart below, which indicates the sector with the biggest share in each superstar’s portfolio. 

RARE Enterprises’ favoured sector is textiles, apparels and accessories, while Sunil Singhania’s is metals and mining, Ashish Kacholia’s is chemicals and petrochemicals.

Rare Enterprises increases stake in Banking & Finance and Auto stocks

Rakesh Jhunjhunwala’s portfolio rose marginally by 0.01% QoQ to Rs 33,230.4 crore in Q3FY23. Rare Enterprises, which manages the late big bull’s portfolio, increased stakes in several companies during the quarter. 

Rakesh Jhunjhunwala’s portfolio increased its stakes in Rallis India and Federal Bank by 0.9% each to 10.3% and 3.5% respectively. It also increased its holding in Geojit Financial Services and Canara Bank by 0.8% and 0.6% to 8.4% and 2.1% respectively.

Rare also increased holdings in Tata Motors and NCC by 0.5% each during Q3, and bought more shares in Karur Vysya Bank, Tata Communications and Edelweiss Financial Services. 

According to shareholder filings, the portfolio’s largest buys were healthcare supplies company Bilcare and auto parts and equipment maker Autoline Industries. But this data point should come with a disclaimer. 

In Q1FY23, the total holding of Rakesh and Rekha Jhunjhunwala in Bilcare and Autoline was 8.5% and 4.5%, respectively. In the Q2FY23 BSE fillings of Bilcare and Autoline Industries however, the names of Rakesh Jhunjhunwala or Rekha Jhunjhunwala are not mentioned in the shareholders list. But the Q3FY23 BSE filings of both the companies show Rekha Jhunjhunwala back in the list as a shareholder with significant stakes. She holds a stake of 7.4% in Bilcare and 4.3% in Autoline Industries. 

The large movement in shareholding could be due to a filing error in Q2, and hence these companies are not included in the chart above. 

Sunil Singhania’s Abakkus Fund increases stake in multiple small-cap companies

Sunil Singhania’s Abakkus Fund saw its consolidated net worth fall by 5.1% QoQ in Q3FY23 to Rs 1,973.8 crore. It added Tracxn Technologies to the portfolio during the quarter by buying a 1.6% stake in the IT consulting company. It also bought a 1.8% stake in Dreamfolks Services, a travel support services company and added a 0.3% stake in Mastek, increasing its stake in the IT company to 3.1%. 

The fund also bought an additional 0.2% stake in Sarda Energy & Minerals, Ion Exchange (India) and Technocraft Industries (India) each, bringing its stake to 2.1%, 3.2% and 3% respectively. It added minor stakes in already existing small-cap portfolio companies like Dynamatic Technologies, Stylam Industries, Siyaram Silk Mills and HG Infra Engineering, taking its holdings to 2.6%, 2.4%, 2.1%, and 1.5% respectively. 

After selling its stake in CMS Info Systems in Q2FY23 to below 1%, Abakkus  now holds a 1% stake in the company.

Ashish Kacholia adds four small-cap companies to his portfolio

Ashish Kacholia’s net worth increased by 1.6% QoQ to Rs 1,800.3 crore in Q3FY23. During the quarter, he added Goldiam International (textile company), Raghav Productivity Enhancers (capital goods company), Likhitha Infrastructure (infrastructure service provider) and Knowledge Marine & Engineering Works (transportation company) to his portfolio. He purchased 1%, 2.1%, 2% and 2.3% stakes in these companies respectively.

The marquee investor purchased 1.3% and 1.2% stakes in chemical companies Agarwal Industrial Corp and Yasho Industries respectively and now holds 3.8% in each. During Q3FY23, he added 0.8% of Best Agrolife (now holds 2.3%), 0.6% of SJS Enterprises (now holds 4.4%), 0.4% of TARC (now holds 2.2%) and 0.2% of Ador Welding (now holds 4.4%) to his portfolio. 

Kacholia bought an additional 0.1% stake in Gravita India, Megastar Foods and Xpro India, and now holds 2.1%, 1.1% and 4.5% stakes respectively. The other companies where he increased stakes were Garware Hi-Tech Films and PCBL.

Dolly Khanna makes no new additions to her portfolio in Q3FY23

Dolly Khanna’s net worth fell by 21.4% QoQ to Rs 409.7 crore in Q3FY23. Compared to previous quarters, the investor drastically slowed down buying in Q3. She only increased her stake marginally in three companies and did not make any new additions to her portfolio. Khanna tends to turn bearish when markets become volatile, so this is not unusual for the investor.. 

She raised her stake in Industrial Gases company National Oxygen by 0.1% to 1.2%. The company has risen over 6.3% over the past three months till February 8. She also raised 0.05% stake each in Monte Carlo Fashions and Prakash Pipes.   

Porinju Veliyath makes three new additions to his portfolio in Q3FY23

Porinju V Veliyath’s net worth fell by 1.3% QoQ to Rs 174.9 crore in Q3FY23. He added three new small and micro-cap companies to his portfolio. He bought a 1.3% stake in furniture manufacturer Priti International and 1.1% stake each in Max India and Lakshmi Automatic Loom Works in Q3.

The investor raised his stake in Special Consumer Services company Kaya by 1% to 2.4% in Q3FY23. This is after he cut 0.1% from  the company holding in Q2FY23. He also bought an additional minor stake in Aurum Proptech.

Vijay Kedia adds Siyaram Silk Mills to the portfolio

Vijay Kedia’s net worth fell 5.3% QoQ to Rs 729.7 crore in Q3. Kedia’s only buy during the quarter was a new addition–a 1.1% stake in Siyaram Silk Mills, an Indian blended fabric and garment manufacturer. In Q3FY23, the textile company’s net profit fell for the first time in the past seven quarters to Rs 51.9 crore.

Mohnish Pabrai increases his stake in Edelweiss Financial Services

Mohnish Pabrai’s net worth in Q3FY23 fell by 6.9% QoQ to Rs 1,540.02 crore. The only change he made in his portfolio was buying an additional 0.3% stake in Edelweiss Financial Services. As of Q3FY23, he holds a 6.7% stake in the company. The financial services company reported a 42.7% YoY increase in net profit to Rs 101.3 crore in Q3FY23.

 
Trendlyne Marketwatch
Trendlyne Marketwatch
10 Feb 2023
Market closes lower, Axis Direct upgrades rating on Ambuja Cements to 'Buy' from 'Hold'

Trendlyne Analysis

Nifty 50 closed at 17,856.50 (-37.0, -0.2%), BSE Sensex closed at 60,682.70 (-123.5, -0.2%) while the broader Nifty 500 closed at 15,015.85 (-14.3, -0.1%). Of the 1,952 stocks traded today, 986 were on the uptick, and 901 were down.

Indian indices recovered from their day’s lows but still closed in the red. Reuter’s poll of economists indicated that Indian annual retail inflation likely rose to 5.9% in January from a 12-month low in December. Adani Total Gas and Adani Transmission closed at their lower circuits while Adani Enterprises fell 3.9% in trade today after global index provider Morgan Stanley Capital International (MCSI) said it will cut the weights of these companies in its indices. Adani Group hired US legal firm Wachtell, which represented Twitter in Elon Musk's $ 44 billion deal, to take on short-seller Hindenburg.

Nifty Smallcap 100 and Nifty Midcap 100 closed in the green, despite the benchmark index closing lower. Nifty Realty closed over 1.3% higher led by DLF and Godrej Properties. However, Nifty Energy and Nifty FMCG closed lower than Thursday’s levels. Nifty IT also closed in the red, in line with the tech-heavy Nasdaq 100 futures, which traded lower. 

Most major Asian indices closed in the red amid weak global cues. European indices also traded lower, tailing Asian indices and US indices futures. The UK’s economy stagnated in Q4CY22 as its GDP remained unchanged between the third and fourth quarters of CY22. However, the British economy narrowly avoided recession, which is technically defined as two consecutive quarters of falling output/GDP.

  • MRFbeats Apollo Tyres in YoY revenue growth, annual RoCE and three-year average annual RoE. But it lags in YoY and QoQ net profit growth, PE ratio, MF holdings and broker average rating.

  • Mahindra & Mahindra's net profit grows 34.7% YoY to Rs 2,676.6 crore in Q3FY23. Rise in sales in the automotive and farm equipment segments aids the revenue to increase by 29.8% YoY. The company shows up in a screener of stocks with improving revenue QoQ for the past four quarters.

  • KPIT Technologies and CG Power & Industrial Solutions hit their all-time highs of Rs 849.9 and Rs 327 per share respectively. KPIT Technologies has risen 16.9%, while CG Power & Industrial Solutions rose 10.3% over the past month.

  • Axis Direct upgrades its rating on Ambuja Cements to ‘Buy’ from ‘Hold’ and lowers the target price to Rs 460 from Rs 555, implying an upside of 26.6%. The brokerage turns positive on the company due to its positioning in key markets, cost-saving initiatives and higher capacity utilisation.

  • Chris Wood, Global Head of Equity Strategy at Jefferies, expects a recession in the second phase of 2023. In the Greed & Fear note, he mentions the changes that will be made to India's long-only portfolio–adding investment in Bajaj Finance and trimming stake in HDFC Life Insurance and ICICI Lombard General Insurance.

  • Foreign institutional investors pull out Rs 3,951.6 crore from the equity market over the past week, according to Trendlyne's FII dashboard. Meanwhile, index futures receive the highest inflow of Rs 1,611.3 crore from foreign investors and mutual funds invest Rs 3,580.5 crore in the market.

  • PSU Bank stocks like Punjab & Sind Bank, Central Bank of India, Union Bank of India and Bank of Maharashtra are rising in trade. The broader sectoral index Nifty PSU Bank is also trading in the green.

  • Lupin is falling as its net profit declines 71.9% YoY to Rs 153.5 crore in Q3FY23. EBITDA margin grows 340 bps YoY on the back of a decrease in raw material and other expenses. The company features in a screener of stocks with declining net profit and profit margin (YoY).

  • Amit Uplenchwar, Director (Strategy & Subsidiaries Operations) of Kalpataru Power Transmissions, says the company’s order inflow could exceed the target of Rs 21,000 crore and be in the range of Rs 24,000-25,000 crore in FY23.

  • Suzlon Energy is rising as its Q3FY23 net profit surges more than 2X YoY to Rs 78.4 crore despite its revenue declining by 9.4% YoY. This improvement is due to the cost of raw materials declining 34.1% YoY. The company shows up in a screener for stocks with improving cash flow and a high durability score.

  • Hindalco Industries, Shree Cements and Page Industries’ Q3FY23 net profits fall 62.9%, 41.5% and 29.1% YoY respectively.

  • Housing Development Finance Corp, Titan and Berger Paints outperform the Nifty 50 index over the week post their Q3FY23 results.

  • Elara India Opportunities Fund and Cresta Fund from Hindenburg's report sell 0.26% and 0.32% stakes respectively in Adani Transmission in Q3FY23.

  • Sanjay Purohit, Group CEO of Sapphire Foods, says the company’s growth has normalised after 4-6 quarters. He expects revenue and EBITDA to grow 23-25% and 30-33% respectively for the next three years.

  • General Industrials, Banking & Finance and Media sectors trade above 3% over the past week.

  • Pfizer appoints Meenakshi Nevatia as the Managing Director and Additional Director of the company for a period of five years with effect from April 3, 2023, subject to the approval of shareholders.

  • One97 Communications (Paytm) is falling as 2.1 crore shares (3.4% equity) change hands in a block deal.

  • Zomato’s net loss widens to Rs 346.6 crore in Q3FY23 against a loss of Rs 63 crore in Q3FY22. Its finance and depreciation costs soar more than 4X YoY. However, Hyperpure and quick commerce revenues increase but revenue from the food delivery business falls in Q3. The stock ranks medium on the Trendlyne Checklist score.

  • Mahindra & Mahindra inks an MoU with the Telangana government for its expansion plans at its manufacturing facility in Zaheerabad, Medak. The project would entail setting up a facility to develop and produce three- and four-wheeler electric vehicles.

  • Voltas is falling as it posts a net loss of Rs 110.4 crore, compared to a net profit of Rs 96 crore in Q3FY22. This is on account of the rising cost of materials and a one-time provision of Rs 137.4 crore due to the cancellation of a contract. However, revenue grows 11.8% YoY led by the unitary cooling products segment.

  • Life Insurance Corp of India’s Q3FY23 net profit rises nearly 27X YoY to Rs 6,334.2 crore and net premium income increases 14.5% YoY. This growth is driven by healthy expansion in market share and first-year premium income. The stock shows up in a screener for companies with RoA improving over the past two years.

Riding High:

Largecap and midcap gainers today include Aurobindo Pharma Ltd. (468.85, 6.33%), Indus Towers Ltd. (168.00, 5.40%) and CG Power and Industrial Solutions Ltd. (327.85, 5.27%).

Downers:

Largecap and midcap losers today include One97 Communications Ltd. (650.55, -7.85%), Adani Transmission Ltd. (1,186.65, -5.00%) and Adani Total Gas Ltd. (1,255.40, -5.00%).

Volume Shockers

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

Top high volume gainers on BSE included Campus Activewear Ltd. (420.15, 6.46%), Aurobindo Pharma Ltd. (468.85, 6.33%) and Punjab & Sind Bank (29.25, 4.84%).

Top high volume losers on BSE were Fine Organic Industries Ltd. (4,764.05, -5.53%), Garware Technical Fibres Ltd. (2,953.20, -5.43%) and Lupin Ltd. (737.15, -4.80%).

Alkem Laboratories Ltd. (3,292.70, 1.93%) was trading at 9.2 times of weekly average. Akzo Nobel India Ltd. (2,315.30, 4.20%) and United Breweries Ltd. (1,480.75, -4.45%) were trading with volumes 8.8 and 8.8 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

6 stocks made 52-week highs, while 7 stocks were underachievers and hit their 52-week lows.

Stocks touching their year highs included - Britannia Industries Ltd. (4,622.70, -0.32%), Carborundum Universal Ltd. (1,011.80, 4.51%) and Mahindra & Mahindra Financial Services Ltd. (265.05, -1.98%).

Stocks making new 52 weeks lows included - Adani Transmission Ltd. (1,186.65, -5.00%) and Page Industries Ltd. (38,786.20, 2.18%).

16 stocks climbed above their 200 day SMA including Vedant Fashions Ltd. (1,258.50, 3.20%) and Glenmark Pharmaceuticals Ltd. (400.40, 1.55%). 10 stocks slipped below their 200 SMA including Astral Ltd. (1,941.65, -4.36%) and Havells India Ltd. (1,200.95, -2.74%).

 
Trendlyne Marketwatch
Trendlyne Marketwatch
09 Feb 2023
Market trades higher, IRCTC's net profit rises 22.4% YoY to Rs 255.5 crore

Trendlyne Analysis

Nifty 50, BSE Sensexand the broader Nifty 500closed at 17,893.45 (21.8, 0.1%), 60,806.22 (142.4, 0.2%) and 15,030.10 (1.8, 0.0%) respectively, while the market breadth remained horizontal. Of the 1,947 stocks traded today, 895 were gainers and 983 losers. 

The Adani group will prepay a USD 500 million loan due next month, as several banks steered clear of the refinancing option. Adani group stocks closed in deep red, following the MSCI announcement that it will be making changes to the status of the group's stocks in the index. Meanwhile, France’s Total Energies put its USD 50 billion deal with the Adani group on hold.

Nifty Smallcap 100 and Nifty Midcap 100 closed flat, following the benchmark index. The Nifty Metal closed lower as heavyweight Adani Enterprises fell on the back of the MSCI inquiry. Nifty IT closed in the green, backed by gains in Infosys shares. 

In international markets, major Asian indices closed mixed. US indices futures traded lower as investors expect more rate hikes from the Fed to achieve the desired target of 2% inflation. Tech-heavy Nasdaq 100 closed 1.83% lower on Wednesday. European markets traded in the green as German consumer prices rose to 9.2% in January from a year ago, less than the anticipated 10%. This eased pressure on the European Central Bank to keep raising rates. UK is set to release GDP numbers on Friday, and they are expected to show that the economy flatlined in the fourth quarter, narrowly avoiding recession.

  • Money flow index (MFI) indicates that stocks like Symphony, Blue Star, Procter & Gamble Health and KPIT Technologies are in the overbought zone.

  • French company Total Energies puts its partnership with Adani group’s hydrogen venture on hold after the allegations raised by Hindenburg Research. The partnership was announced in June 2022 and Total Energies was set to have a 25% stake in the project.

  • Commodity Printing/Stationary, IT Training Services, Advertising & Media industries gain over 3% in trade today.

  • Escorts Kubota, Graphite India andAstral’s Q3FY23 net profits fall 6.9%, 59.8% and 26.9% YoY respectively.

  • Trent, Cummins India, Schaeffler India and NHPC are trading above their second resistance or R2 level.

  • HSBC maintains its ‘Buy’ rating on Bharti Airtel with a target price of Rs 970. It expects the company’s return on invested capital (RoIC) to expand on the back of a rise in average revenue per user (ARPU). It adds that the growth outlook is strong due to the 5G rollout.

  • India Railway Catering & Tourism Corp (IRCTC) is rising as its Q3FY23 net profit increases 22.4% YoY to Rs 255.5 crore. Revenue surges 69.9% YoY led by multi-fold growth in the catering segment. The stock shows up in a screener for companies with book value per share improving over the past two years.

  • Hindalco’s Q3FY23 net profit falls 62.9% YoY to Rs 1,362 crore as EBITDA across Novelis (a subsidiary of Hindalco) and the upstream segment dips. However, revenue increases by 5.7% YoY. The stock ranks high on the Trendlyne Checklist score.

  • MRF is falling despite its Q3FY23 net profit rising 17% YoY to Rs 174.8 crore and revenue increasing by 14.7% YoY. The company’s profitability improves amid a significant surge in the cost of materials. The stock shows up in a screener for companies with revenues increasing sequentially for the past four quarters.

  • Analysts expect the RBI to raise interest rates by another 25 bps in April after it expressed concern over the stickiness of core inflation. The RBI also maintained the policy stance at ‘withdrawal of accommodation’.

  • SFK India's net profit rises 31.4% YoY to Rs 116.7 crore in Q3FY23. Growth in revenue and declining employee benefits expenses aid the EBITDA margin to rise by 430 bps YoY. It features in a screener of stocks with improving net profit and profit margin (YoY).

  • One97 Communications (Paytm), CG Power and Industrial Solutions and Mahindra CIE Automotive outperform their sectors in the past month.

  • KRChoksey upgrades its rating on Alembic Pharmaceuticals to ‘Buy’ from ‘Add’ and raises the target price to Rs 704 from Rs 694. This implies an upside of 34.3%. The brokerage believes robust demand in the Indian market and new product launches will offset the price erosion concerns in the US market.

  • Mutual Funds' net inflow grows 2.5X MoM to Rs 11,373 crore in January from Rs 4,491 crore in December 2022, according to data released by the Association of Mutual Funds in India (AMFI).

  • Lupin is rising as it receives US FDA approval for its abbreviated new drug application (ANDA) for glycopyrrolate injection. It is the first approval for the drug manufacturer's new injectable facility in Nagpur. According to IQVIA, the injection had an estimated annual sales of $39 million in the US during CY22.

  • UNO Minda is rising as its Q3FY23 net profit surges 59.9% YoY to Rs 162 crore and revenue rises 33.7% YoY. The growth comes on the back of increasing content per vehicle, a diversified product portfolio and new launches. The stock shows up in a screener for companies with low debt.

  • Trent is rising in trade after reporting a 19.5% YoY increase in net profit to Rs 167 crore. Revenue grows 53.7% on the back of improving customer traction and sales from brands like Westside and Zudio, among others. The company shows up in a screener of stocks with strong annual EPS growth.

  • Indian rupee depreciates to 82.58 from the previous close of 82.49 against the US dollar in early trade today amid continued foreign fund outflows and muted trend of domestic equities.

  • Oberoi Realty's Q3FY23 net profit rises 50.3% YoY to Rs 702.6 crore, while its revenue increases 95.9% YoY. The positive performance is the result of robust sales upon the launch of Tower G in project Sky City. It shows up in a screener for stocks with improving cash flow and good durability.

  • Britannia Industries, Cholamandalam Investment Finance Co and ACC outperform the Nifty 50 index over the week post their Q3FY23 results.

  • Cummins India is rising after reporting an increase in net profit by 66% YoY to Rs 413.8 crore for Q3FY23. Revenue is up 26% YoY, aided by growth in domestic sales and exports. It shows up in a screener for stocks with growth in quarterly net profit and margin YoY.

  • Samvardhana Motherson International’s Q3FY23 net profit surges 85.2% YoY to Rs 453.9 crore as demand recovers in Europe and India. Revenue rises 25.5% YoY, aided by growth in revenue across segments like wiring harnesses, modules and polymer products, among others. It shows up in a screener of stocks with high momentum scores.

Riding High:

Largecap and midcap gainers today include Trent Ltd. (1,341.90, 8.56%), Cummins India Ltd. (1,578.35, 7.06%) and PB Fintech Ltd. (510.30, 5.93%).

Downers:

Largecap and midcap losers today include Adani Enterprises Ltd. (1,925.70, -11.02%), Ambuja Cements Ltd. (357.80, -6.98%) and Adani Power Ltd. (172.80, -5.00%).

Volume Shockers

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

Top high volume gainers on BSE included Trent Ltd. (1,341.90, 8.56%), Cummins India Ltd. (1,578.35, 7.06%) and Gujarat Pipavav Port Ltd. (98.45, 6.49%).

Top high volume losers on BSE were Restaurant Brands Asia Ltd. (99.50, -6.57%), Ircon International Ltd. (55.40, -4.07%) and MRF Ltd. (88,813.05, -3.75%).

Kansai Nerolac Paints Ltd. (417.90, 0.84%) was trading at 9.4 times of weekly average. Godrej Agrovet Ltd. (460.80, 2.45%) and Honeywell Automation India Ltd. (37,910.00, -2.96%) were trading with volumes 8.5 and 7.9 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

7 stocks took off, crossing 52-week highs, while 5 stocks hit their 52-week lows.

Stocks touching their year highs included - Cummins India Ltd. (1,578.35, 7.06%), Mahindra & Mahindra Financial Services Ltd. (270.40, 0.50%) and NCC Ltd. (92.90, -1.69%).

Stocks making new 52 weeks lows included - Page Industries Ltd. (37,960.15, -3.54%) and Thyrocare Technologies Ltd. (486.65, -0.36%).

18 stocks climbed above their 200 day SMA including Trent Ltd. (1,341.90, 8.56%) and PB Fintech Ltd. (510.30, 5.93%). 14 stocks slipped below their 200 SMA including Honeywell Automation India Ltd. (37,910.00, -2.96%) and Prince Pipes & Fittings Ltd. (595.25, -2.91%).

 
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The Baseline
09 Feb 2023
Screener of the week: MFs and FIIs buying infrastructure-related companies
By Abdullah Shah

We take a look at a screener with key infrastructure companies that are seeing a jump in mutual fund and foreign institutional investor holdings. The companies are from three industries that could benefit from the Union budget – construction & engineering, heavy electrical equipment and roads & highways. 

Out of seven companies, only Ashoka Buildcon is in the screener from the roads and highways industry. Construction & engineering, and heavy electrical equipment industries have three companies each (see chart above). 

TD Power Systems, a heavy electrical equipment manufacturer, rose the highest in MF holding change QoQ, rising 1.22 percentage points to 12.93%. ICICI Prudential Infrastructure Fund bought 2.7 lakh shares (or 0.2% stake) in the company in Q3FY23. 

Among the companies we discussed earlier, KEC International from the construction & engineering industry made it to the list as its FII holding increased by 1.04 percentage points, while its MF holding rose 3 basis points QoQ. Fidelity Funds-India Focus Fund bought 20.2 lakh shares (or 0.8% stake) in the company over the past quarter.

You can find more screeners here,