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Trendlyne Marketwatch
Trendlyne Marketwatch
28 Mar 2023
Market closes lower, Centre sanctions Rs 800 crore to set up 7,432 EV charging stations

Trendlyne Analysis

Nifty 50 closed at 16,951.70 (-34, -0.2%) , BSE Sensex closed at 57,613.72 (-40.1, -0.1%) while the broader Nifty 500 closed at 14,211.80 (-50.9, -0.4%). Of the 1,975 stocks traded today, 476 showed gains, and 1,466 showed losses.

Indian indices extend losses and close in the red on a volatile day of trade. The Nifty 50 fell 30 points and closed below the 17,000 mark. The volatility index, India VIX, also fell, declining below 15.

Nifty Smallcap 100 and Nifty Midcap 100 closed in the red, tailing the benchmark index. The Nifty Bank index closed higher than Monday’s levels. All other major sectoral indices close in red. Securities and Exchange Board of India approves JG Chemicals' IPO for a fresh issue of equity worth Rs 202.5 crore. The Home Minister of India Amit Shah stated that the government is working to reduce logistics cost to GDP to 7.5% in the next five years.

European indices traded higher led by regional banking stocks. The sentiment was boosted by comments from Eurozone Governing Council Member Gediminas Simkus stating the banks in the eurozone have high capital buffers, high liquidity and high profitability in a rising interest rate cycle.

Brent crude oil futures rallied after reports stating that 450,000 barrels per day of oil supply from Kurdistan was stopped due to an arbitration case that requires Iraq’s consent to ship oil from Turkey.

  • Relative strength index (RSI) indicates that stocks like Anupam Rasayan India and Aurobindo Pharma are in the overbought zone.

  • Centre sanctions Rs 800 crore to Indian Oil, Bharat Petroleum and Hindustan Petroleum for setting up 7,432 fast-charging stations under the EV scheme, say reports.

  • Computer Age Management Services (CAMS) and C.E. Info Systems (MapmyIndia) hit their 52-week lows of Rs 2,014 and Rs 993.6 respectively. CAMS has fallen 14.7% in the past year, while the other is down 35.1%.

  • Securities and Exchange Board of India approves JG Chemicals' IPO worth Rs 202.5 crore. The IPO will consist of a fresh issue of Rs 202.5 crore and an offer for sale of 57 lakh shares.

  • Emami is up more than 3.5% in trade today. The average broker target price indicates a 39.7% upside from the current price. It shows up in a screener for stocks with strong annual EPS growth.

  • The Centre allocates 39,600 MW of domestic solar PV module manufacturing capacity to 11 companies, including Reliance Industries, JSW Energy and Tata Power Solar. The allocation comes under the PLI scheme for high-efficiency solar PV modules (Tranche-II), with an outlay of Rs 14,007 crore.

  • The industries of advertising & media, iron & steel products and other leisure facilities rise by more than 13% over the past 90 days.

  • Promoter group Madhuraj Foundation acquires 1.2 crore shares (0.24% stake) in Trident for Rs 31.9 crore via a block deal on Monday. The stock is rising in trade today.

  • G R Infraprojects emerges as the lowest bidder for projects worth Rs 1,613.84 crore from the National Highways Authority of India for the construction of a 4/6-lane bypass in Belagavi City and a four-lane with paved shoulders on the Belgaum-Raichur section.

  • Reports suggest that 5.65 lakh shares (0.21% equity) of Eicher Motors, amounting to Rs 162.13 crore, change hands in a large trade.

  • Embassy Office Parks Management Services, the Manager of Embassy Office Parks REIT, approves the acquisition of Embassy Business Hub, Bengaluru, for an aggregate enterprise value of Rs 334.8 crore and exclusive ownership rights.

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

  • JP Morgan remains cautious on the telecom space in India due to the 5G capex cycle, incremental competition and any delay in tariff hikes, says Ankur Rudra, Head of APAC Telecoms & India TMT Research. The brokerage adds that tariff hikes will likely be implemented at the end of CY24.

  • ICICI Direct maintains its ‘Buy’ rating on HG Infra Engineering with a target price of Rs 915, implying an upside of 20.4%. The brokerage expects the company’s robust execution pace and healthy order book to drive strong revenue growth in the coming quarters. It estimates the firm’s revenue to increase at a CAGR of 18% over FY22-25.

  • Sterlite Technologies is falling as it inks a business transfer agreement to sell its telecom products and software business to Skyvera LLC for $15 million.

  • Kalyan Jewellers falls over 8% in trade. Reports suggest that 2.8 crore shares (2.74% equity) of the company, amounting to Rs 312.17 crore, change hands.

  • Allcargo Logistics is rising as it is set to acquire 1.5 lakh shares (30% stake) of Gati-Kintetsu Express for Rs 406.7 crore. The company will purchase 1.3 lakh shares (26% stake) from KWE Kintetsu World Express and 20,000 shares (4% stake) from KWE-Kintetsu Express.

  • Aditya Birla Capital is rising as it decides to sell its entire stake of 50% (25.65 lakh shares) in Aditya Birla Insurance Brokers (ABIBL) to Edme Services, a part of Samara Capital Group. Another stakeholder of ABIBL, Infocyber India Private, will also sell its entire stake to Edme Services. The total value of this transaction is Rs 455 crore.

  • Indian rupee appreciates to 82.15 from the previous close of 82.37 against the US dollar in early trade today amid a weak dollar.

  • Transformers & Rectifiers (India) rises as it receives an order worth Rs 184 crore from a central utility for the supply of transformers.

  • Porinju Veliyath's wife Litty Thomas buys a 0.98% stake in Ansal Buildwell for approx Rs 50.8 lakh on Monday.

  • SJVN secures GREEN Financing worth Rs 915 crore (15 billion Japanese yen) from Japan Bank of International Cooperation for the development of solar power projects in Madhya Pradesh and Gujarat. The estimated cost for the projects is Rs 1,288.35 crore. SJVN shows up in a screener of stocks with improving cash flow from operations in the past two years.

  • Dilip Buildcon is rising as it wins a tender floated by the National Highway Authority of India to build a six-lane highway on the Bangalore-Vijayawada corridor for Rs 780.12 crore. The project will be completed in 24 months. The stock has hit a 52-week low in the past week.

  • PNC Infratech emerges as the lowest bidder for the construction of a four-lane highway in Uttar Pradesh. The project is worth Rs 819 crore and will be built in 24 months. The stock shows up in a screener for companies with high TTM EPS growth.

Riding High:

Largecap and midcap gainers today include Torrent Power Ltd. (511.35, 4.96%), Emami Ltd. (365.40, 4.50%) and Bank of India (71.55, 3.62%).

Downers:

Largecap and midcap losers today include Adani Enterprises Ltd. (1,600.85, -7.09%), Adani Ports & Special Economic Zone Ltd. (593.40, -5.67%) and Bandhan Bank Ltd. (187.45, -5.23%).

Volume Shockers

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

Top high volume gainers on BSE included PNC Infratech Ltd. (282.00, 6.37%), Torrent Power Ltd. (511.35, 4.96%) and Tanla Platforms Ltd. (523.05, 2.60%).

Top high volume losers on BSE were Kalyan Jewellers India Ltd. (107.15, -9.69%), Raymond Ltd. (1,109.20, -5.86%) and Adani Ports & Special Economic Zone Ltd. (593.40, -5.67%).

Sun TV Network Ltd. (397.95, -2.83%) was trading at 4.7 times of weekly average. United Breweries Ltd. (1,406.70, -0.51%) and ZF Commercial Vehicle Control Systems India Ltd. (9,982.25, -0.18%) were trading with volumes 4.4 and 4.0 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

2 stocks overperformed with 52 week highs, while 77 stocks hit their 52 week lows.

Stocks touching their year highs included - Zydus Lifesciences Ltd. (484.75, 0.59%) and UltraTech Cement Ltd. (7,403.10, -0.63%).

Stocks making new 52 weeks lows included - ACC Ltd. (1,613.95, -4.21%) and Avanti Feeds Ltd. (329.05, -0.29%).

12 stocks climbed above their 200 day SMA including PNC Infratech Ltd. (282.00, 6.37%) and Torrent Power Ltd. (511.35, 4.96%). 23 stocks slipped below their 200 SMA including Minda Corporation Ltd. (199.15, -7.16%) and Shipping Corporation of India Ltd. (117.15, -6.91%).

 
Trendlyne Marketwatch
Trendlyne Marketwatch
27 Mar 2023
Market closes higher, Larsen & Toubro bags orders worth Rs 2,500-5,000 crore

Trendlyne Analysis

Nifty 50 closed at 16,985.70 (40.7, 0.2%), BSE Sensex closed at 57,653.86 (126.8, 0.2%) while the broader Nifty 500 closed at 14,262.70 (-16.3, -0.1%). Of the 1,986 stocks traded today, 372 were on the uptick, and 1,579 were down.

Indian indices fall from their day's high but closed in the green on a volatile day of trade. The Nifty 50 rose 40 points but closed below the 17,000 mark. S&P Global maintained India's economic growth forecast unchanged at 6% in FY24. 

Nifty Smallcap 100 and Nifty Midcap 100 closed in the red, despite the benchmark index closing in the green. Nifty Pharma closed higher than Friday’s levels. Larsen & Toubro's power transmission & distribution business bags orders worth Rs 2,500-5,000 crore in India and overseas.

European indices traded higher as market sentiment improved after European Central Bank President Christine Lagarde assured European Union leaders that the euro-area banking sector remains healthy. Brent crude oil futures traded in the green, extending their gains from last week as traders assess the impact of the banking crisis on the wider economy.

  • Avenue SupermartsbeatsTrent in PE ratio, annual RoE and broker average target upside. But it lags in YoY revenue & net profit growth, FII holdings and one-year dividend yield.

  • Analysts at HSBC expect Zomato’s stock price to touch Rs 87, a 64% rise from its current level. They say the company's market share will increase to 57% by FY24. The company shows up in a screener for stocks with increasing revenue over the past four quarters.

  • Dalmia plans to further cut its stake in Indian Energy Exchange and eventually exit the company. Dalmia Group currently holds a 14.8% stake in the company through three entities.

  • FSN E-Commerce Ventures (Nykaa) falls more than 2% in trade today. According to reports, Jefferies maintains its target price on the stock at Rs 200 despite the recent resignations of 5 senior executives. The management indicates that the number of exits is minor compared to the company's size.

  • Hardware technology & equipment, forest materials and telecommunications equipment sectors fall by more than 7% over the past month.

  • Healthcare stocks like Biocon, Lupin, Alkem Laboratories and Glenmark Pharmaceuticals are rising in trade. The broader sectoral index Nifty Healthcare is also trading in the green.

  • ICICI Securities maintains its ‘Buy’ rating on KEC International and raises the target price to Rs 540 from Rs 528. This indicates an upside of 18.2%. The brokerage keeps a positive outlook on the firm as it expects robust pick-up of orders across segments, balance sheet improvement and lower commodity prices.

  • One97 Communications (Paytm) is rising as the RBI extends the time to resubmit the application for a payment aggregator license. The company can continue its online payment aggregation business while the RBI awaits approval from the Centre for the past investments from the company into Paytm as per FDI guidelines.

  • Bank of America Securities remains constructive on the metals and mining sector in the near term. According to the brokerage, steel prices will rise on the back of high demand and increase in export opportunities after the removal of export duty on steel products.

  • Larsen & Toubro’s power transmission & distribution business bags orders worth Rs 2,500-5,000 crore in India and overseas. The stock shows up in a screener for companies with book value per share increasing over the past two years.

  • Rites and a joint venture partner win a project management consultancy work worth Rs 122 crore under the Assam health system strengthening project.

  • Sun Pharmaceutical Industries says that the ransomware attack on the company on March 2 has impacted its business operations and expects reduced revenues in some businesses. However, the company's guidance for FY23 remains intact.

  • ISGEC Heavy Engineering wins an order worth Rs 197.25 crore from Maharashtra State Power Generation to renovate and modernise electrostatic precipitators at Chandrapur thermal power station.

  • Butterfly Gandhimathi falls in trade as it announces a merger with Crompton Greaves Consumer. Upon merger, Crompton Greaves will issue 22 fully paid shares for every five fully paid share of Butterly Gandhimathi. This will result in Butterfly Gandhimathi dissolving after the merger.

  • Grasim Industries leases 220 acres in Gujarat Industrial Development Corp from Century Textiles & Industries for Rs 254.7 crore to set up manufacturing facilities. The stock shows up in a screener for companies with RoCE improving over the past two years.

  • TPG Growth III Fund sells a 7.6% stake (2.3 crore shares) in Campus Activewear for Rs 805.8 crore in a bulk deal on Friday. Fidelity Investments Trust and Societe Generale, among others, pick up the shares. Campus Activewear falls 48% from its 52-week high.

  • Promoter Sanjay Mohan Labroo sells a 0.16% stake (4 lakh shares) in Asahi India Glass for Rs 18.6 crore in a block deal on Friday. In another block deal, BNP Paribas Arbitrage sells a 0.02% stake (13.8 lakh shares) in Bharti Airtel for Rs 105.4 crore.

  • India's credit card transactions decline marginally but remain above the Rs 1 lakh crore level in February, suggests data released by the Reserve Bank of India.

  • Zydus Family Trust, promoter of Zydus Wellness, buys a 0.8% stake in the company on Friday. It now holds an 8.83% stake in the company.

  • Godawari Power & Ispat is rising as its sponge iron plants, steel melting shop, rolling mills and wire drawing plants at Siltara and Raipur resume partial operations on Friday. The plants will work at full capacity from April 1. The stock shows up in a screener of consistent returns over the past five years.

  • Morgan Stanley initiates coverage on Phoenix Mills with an ‘Overweight’ rating and a target price of Rs 1,700. It expects the company to more than double its rental portfolio in the next 3-4 years and expansion to improve EBITDA CAGR to 27% over FY24-25.

  • Sunil Singhania's Abakkus Fund buys a 1.75% stake in TTK Healthcare for Rs 22.5 crore in multiple bulk deals on Friday.

  • Karur Vysya Bank falls in trade as the Reserve Bank of India imposes a fine of Rs 30 lakh on the bank for failure to report a few accounts as fraud. The stock is trading below its third support or S3 level.

  • Sun Pharmaceuticals is rising after signing an agreement with Vivaldis Health and Foods to acquire a 60% stake in the company for Rs 143.3 crore. It will acquire the remaining 40% stake in the future, as per the terms of agreement.

  • Bharat Electronics (BEL) wins orders worth Rs 4,300 crore from the Indian Army and Indian Navy. BEL has signed a contract worth Rs 3,000 crore with the Ministry of Defence (MoD) to supply electronic warfare systems for the Indian Army. Also, it received contracts worth Rs 1,300 crore for the supply of gun fire control, surveillance and sonar systems, among others, to the Indian Navy.

Riding High:

Largecap and midcap gainers today include UNO Minda Ltd. (455.10, 3.64%), Biocon Ltd. (205.50, 3.42%) and Lupin Ltd. (658.75, 2.93%).

Downers:

Largecap and midcap losers today include Adani Transmission Ltd. (1,068.40, -4.99%), Adani Power Ltd. (183.00, -4.98%) and Adani Wilmar Ltd. (387.50, -4.95%).

Volume Rockets

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

Top high volume gainers on BSE included EPL Ltd. (161.30, 3.20%), Lupin Ltd. (658.75, 2.93%) and SJVN Ltd. (30.85, 0.98%).

Top high volume losers on BSE were Aditya Birla Sun Life AMC Ltd. (312.25, -8.09%), Wockhardt Ltd. (151.20, -6.12%) and Praj Industries Ltd. (308.55, -4.99%).

Thyrocare Technologies Ltd. (421.10, -2.80%) was trading at 6.9 times of weekly average. Timken India Ltd. (2,765.00, -1.21%) and Procter & Gamble Hygiene & Healthcare Ltd. (13,700.00, -0.31%) were trading with volumes 5.4 and 5.2 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 57 stocks hit their 52-week lows.

Stocks touching their year highs included - AIA Engineering Ltd. (2,890.95, 1.68%), Cyient Ltd. (1,008.20, 0.70%) and Godrej Consumer Products Ltd. (961.60, 1.09%).

Stocks making new 52 weeks lows included - Avanti Feeds Ltd. (330.00, -1.60%) and Bombay Burmah Trading Corporation Ltd. (810.45, -2.47%).

9 stocks climbed above their 200 day SMA including EPL Ltd. (161.30, 3.20%) and Grasim Industries Ltd. (1,623.90, 1.86%). 27 stocks slipped below their 200 SMA including Hitachi Energy India Ltd. (3,146.65, -5.61%) and PNC Infratech Ltd. (265.10, -4.62%).

 
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The Baseline
24 Mar 2023
Five Interesting Stocks Today
  1. UltraTech Cement: With a capacity of 121.35 metric tonnes per annum (mtpa), thiscement and construction company  has plans to increase its capacity to 153.85 mtpa by FY25/FY26.

UltraTech Cements reported revenue growth of 19.5% YoY in Q3FY23, but its EBITDA margins declined 33bps YoY. The rise in revenue was led by an increase in volumes, while margins contracted due to the higher cost of raw materials. The price hike undertaken by UltraTech lagged cost increases, and the increase in energy costs adversely impacted the margins of the firm.

Energy costs (petcoke/coal) have decreased by 30% in CY23.  The benefit of this will start to reflect in Q4FY23. FY24 being an election year, government spending on infra projects is expected to be high. UltraTech might see a jump in volumes due to this. However, in the near term, the company is more focused on volumes and will restrict its price hikes. The stock hasgained 4.27% in the past three trading sessions and shows up in a screener for growth in net profit with an increasing profit margin.

Geojit BNP Paribas says demand for cement remains strong despite inflationary headwinds led by infrastructure and housing sector initiatives. Furthermore, a drop in raw material costs will enhance the company’s margins. Ultratech’s premium brand positioning, pan-India presence and efficient capacity utilization will aid bottom-line growth.

  1. One97 Communications (Paytm): This internet & software services stock rose 6.9% on Wednesday after Macquarie upgraded its rating to ‘Outperform’ from ‘Underperform’ and revised the target price to Rs 800 from Rs 450 per share. This implies a potential share price upside of 28.4%. During previous broker downgrades, Macquarie was one of the first brokerages to slash Paytm’s target price to Rs 450 and recommendation to ‘Underperform’. However, Macquarie appears to have changed its mind and turned bullish on the stock. The recent upward target price revision has helped Paytm to show up in a screener of stocks with upgraded recommendation or target price in the past three months. The stock is currently trading 245.1% below its issue price of Rs 2,150 per share.

According to the brokerage, the company has outperformed on the distribution of financial services revenue by a huge margin, while also controlling the overall expenses and charges. This can be observed in its strong operating performance in January-February. The company’s loan disbursement increased by 286% YoY to Rs 8,086 crore, while its gross merchandise value (GMV) witnessed a growth of 41% YoY. Its average monthly transacting users (MTU) also rose 28% YoY in January-February.

Owing to this strong operational performance, Trendlyne’s forecaster estimates the company’s annual revenue to grow by 37.6% to Rs 7,969 crore and its losses to contract by 21.7% to Rs 1,966.9 crore. However, one thing to keep an eye on is Paytm’s NPA levels on loans, as interest rates continue to increase. 

  1. Phoenix Mills: This realty company has risen 5.8% over the past week on the back of the street’s positive outlook on its prospects. Post the second Covid wave, the company has witnessed a gradual recovery in demand and footfall across its retail, office and commercial spaces. The firm’s mall portfolio is expected to increase to 14 million square feet (msf) by FY27, from 9 msf in March 2023. The realty company aims to add at least one million square feet of retail space every year. By June this year, the company will be adding three more malls to its portfolio of 11 now. According to reports, the management claims leasing occupancy rates across its malls have improved to 94%-99% as retail consumption improves. The stock shows up in a screener for companies with improving cash flow and high durability. 

Motilal Oswal recently re-initiated its coverage on Phoenix Mills with a ‘Buy’ rating. The brokerage believes that healthy pre-leasing trends across its upcoming malls provide strong near-term visibility on rental growth. It is also especially positive about the firm’s mixed-use strategy, where the company plans to add office spaces on top of or adjacent to its existing and upcoming malls, to improve the blended yield of the assets.

The company expects a consumption boom in India over the coming quarters and plans to expand into newer urban markets across the country. However, medium-term risks like a slowdown in consumption recovery and lower-than-expected leasing demand can impact the company’s expansion plans.

  1. Anupam Rasayan India: This agrochemicals company rose over 2.5% in trade on Thursday after it signed a letter of intent (LoI) worth $120 million (Rs 984 crore) with a Japanese chemical company. The LoI is for the supply of new-age advance intermediates for life science ingredients over six years. Commenting on the same, Managing Director Anand Desai says, "This LoI demonstrates the company’s ability to work on a niche molecule with Japanese customers, and strengthens the revenue growth visibility in the coming years.” Trendlyne’s forecaster estimates Anupam’s revenue to grow by 28.2% in FY23. 

The company has been on an uptrend recently, rising around 33% in the past month on the back of a strong outlook. As a result of the uptick in share price, the company features in a screener of stocks  with strong momentum. It has also risen around 56% from its 52-week low of Rs 546.7. Anupam Rasayan has focused on expanding its product portfolio in fluorination chemistry, and plans to launch 14 molecules in the next 12-18 months, and five molecules in Q4FY23. The company also has a robust pipeline of contracts worth Rs 2,620 crore, says KRChoksey.

In addition, Anupam Rasayan has signed a Memorandum of Understanding (MoU) worth Rs 670 crore with the Government of Gujarat to set up three chemical plants, according to media reports. These plants will focus on manufacturing fluorochemicals.

  1. Indian Oil Corporation (IOC): This oil marketing & distribution stock has fallen 1.13% in the past week despite announcing new ventures and improving refining capabilities. On Monday, IOC inked a pact with NTPC’s arm to form a joint venture for setting up a renewable energy power plant to meet IOC’s power requirements. Reports suggest that the transition of energy production from fossil-based systems to renewable energy is a good move, given that demand for petrol and diesel will slowly fall as companies shift to renewable energy sources. This is also in line with IOC’s target to increase its green energy share to 12% by 2030 from the current 9%.

On Tuesday, IOC’s board gave in-principle approval to prepare a feasibility report to set up a petrochemical complex at Paradip, Odisha. The estimated cost of the project is Rs 61,077 crore. The project in Paradip will help IOC improve its petrochemical intensity (% of crude oil converted to chemicals) and also reduce import dependency.

IOC’s Chairman Shrikant Madhav Vaida says that the company’s petrochemical intensity is currently at 5%-6%, and it plans to increase it to 10%-12%. He adds that refineries at locations like Panipat and Odisha will see the intensity go as high as 25%. Despite the announcement, the stock fell 1.3% in trade on Tuesday.

However, it has gained 8.2% in the past three months, thanks to a steady fall in crude prices. ICICI Direct maintains its ‘Buy’ call on the company with a target price of Rs 79.9. It recommends keeping the stop loss at Rs 77.7. Geojit BNP Paribas maintains a ‘Hold’ on the stock and expects effective cost optimization and enhanced utilization to aid earnings in the near term. Trendlyne’s consensus recommendation has 16 analysts recommending a ‘Buy’, 8 suggesting ‘Hold’ and 4 ‘Sell’.

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

 
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The Baseline
24 Mar 2023
When blood isn’t enough: Some family owned companies like the Tata group, are strong performers. Others? Not so much
By Abhiraj Panchal

The top three companies by market cap in the US - Apple, Microsoft and Alphabet - were all started by first-generation entrepreneurs. In India however, two of the top three companies by market cap - Reliance and TCS - are part of family conglomerates. This pattern continues as we go down the list of Indian businesses. 

Tata, Birla and Ambani are well-known names and family-run Indian conglomerates with a significant share of the economy. But do these family-owned businesses do better or worse than average, in financial performance? Do companies whose top management are all in the family, see different outcomes? 

Here we take a look at India’s largest family-run businesses, and how they perform compared to the overall industry. 

To do this comparison, we looked at the Return on Capital Employed (ROCE). The ROCE is a ratio used to evaluate a company’s capital efficiency and profitability, is an effective parameter to compare the performance of companies. It helps us understand how good a company is at generating profits from its capital. 

Investors prefer stocks with stable and rising ROCE (above 20%) over stocks with weak and volatile ROCE (below 10%). Another advantage with the ROCE ratio is that unlike return on equity (ROE), which analyses only profitability on equity, it considers debt along with equity. The companies in focus are capital-intensive and ROCE therefore, offers better insights.

The chart above depicts the ROCE percentage on the Y-axis. The bubble size is linked to the market cap of the company. Five major companies from each family group have been chosen and analysed.  20% ROCE, which is considered a good ratio, has been highlighted on the chart so that we can see which companies perform better or worse. 

We also checked how family groups perform as compared to their sector’s average ROCE. 

Fertilizers, software and services and FMCG are among the sectors with strong ROCE ratios.

Murugappa Group companies log high ROCE

Murugappa Group, founded in 1900, has a presence in auto, sugar, fertilizers, etc. The Tamil Nadu based group is headed by M M Murugappan and currently has the fourth generation of the Murugappa family on the board. 

Most companies in the group, except for Carborundum Universal (18.1%), have very strong returns. Companies with high returns are Cholamandalam Investment & Finance (24.7%), Tube Investments of India (28.6%) and CG Power and Industrial Solutions (43.6%). All three companies have also outperformed their respective sectors by a minimum of 15%. Coromandel International has a high ROCE of 31.1% but did not outperform the fertilizer sector. 

Adani Group struggles in ROCE, Adani Total Gas is the outlier

Founded by Gautam Adani in 1988 for trading commodities, the Adani Group has over the decades, turned into a multinational conglomerate involving multiple businesses. Their meteoric rise has been attributed to the rapid increase in debt the group has taken on, and their closeness to the current government. However, the recent Adani-Hindenburg row made investors cautious about the group.

As seen in the chart, four of the top five companies have weak ROCE values and underperform their respective sectors. Adani Total Gas is the only company with a high ROCE of 24.8%, and that has outperformed its sector, utilities (by 12.1%). Adani Enterprises, Adani Ports & Special Economic Zone, Adani Transmission and Adani Green Energy have ROCE lower than 10%.

Aditya Birla Group: UltraTech Cement, Aditya Birla Sun Life outperform sector ROCE

Aditya Birla group, founded by Seth Shiv Narayan Birla in 1857, is currently chaired by Kumar Mangalam Birla. The group is engaged in sectors like metals, cement and telecom. The major five stocks under the Birla Group have ROCE on the lower spectrum. Hindalco and UltraTech Cement have fairly high returns of 15.6% and 14.6% respectively. UltraTech’s ROCE has outperformed the cement and construction sector by 1.8%. 

Aditya Birla Sun Life AMC, which is not in the top five companies in terms of market cap, outperformed its sector with a strong ROCE of 39.4%. 

Tata Group performs better than its sectors

Established by Jamsetji Tata in 1868, Tata group is India's largest conglomerate. It is currently looked after by the parent company, Tata Sons. Key people in Tata Sons are Ratan Tata and Natarajan Chandrasekaran, among others. 

With strong returns, three of the top five companies in the Tata group have outperformed their respective sectors. Tata Consultancy Services, an IT behemoth, has a ROCE of 52.9%, higher than its sector’s 37.6%, which in itself is a strong percentage. Titan and Tata Steel also have high returns of 29.7% and 28.3% respectively, whereas Tata Motors’s is very low at 1.6%. 

Mahindra Group’s Mahindra Lifespace Developers has negative ROCE

Mahindra & Mahindra, incorporated as Mahindra & Mohammed in 1945 by Jagdish Chandra Mahindra and Kailash Chandra Mahindra, is currently chaired by Anand Mahindra. Besides auto, the Mahindra group is also engaged in IT and finance businesses. Mahindra & Mahindra, Mahindra & Mahindra Financial Services and Mahindra CIE Automotivehave returns above 10% but below 20%. 

Tech Mahindra has a strong ROCE of 23.5%, yet underperformed the software and services sector by 14.1%. On the other hand, Mahindra Lifespace Developers has a negative ROCE of -4.3%, even though it has a positive ROE of 8.6%. The company logged below zero returns on capital as it had negative EBIT for the past three years. 

Most stocks from the Godrej Group underperform their sectors 

Godrej Group was founded by Ardeshir Godrej and Pirojsha Burjorji Godrej in 1897. Its current chairman is Adi Godrej. Only one of the listed companies in the group - Astec Lifesciences - has outperformed its respective sector with strong returns. The other four have returns lower than 20%. The only stock with a high ROCE is Astec Lifesciences (32.1%), a chemicals manufacturer, and it has outperformed its sector by 9.1%. Godrej Agrovet and Godrej Consumer Products come close to the 20% mark with 19.4% and 18.7% respectively.

Most companies in the Jindal Group have strong returns 

The Jindal group was founded in 1952 by B C Jindal for the manufacture of steel pipes and pipe fittings. Since then, it has diversified into packaging films, power generation, etc. Most companies under Jindal have strong returns. JSW Steel, Jindal Steel & Power, Jindal Stainless and Jindal Stainless (Hisar) stand at 24.9%, 25%, 34.9% and 32.7% respectively. But only the latter two have outperformed the metal and mining sector (26.9%). JSW Energy has a ROCE of 11.6%.

Bajaj Group’s Bajaj Auto manages to make the cut above 20%

Bajaj Group, founded by Jamnalal Bajaj in 1926, is currently headed by Niraj Bajaj, Rahul Bajaj and Madhur Bajaj, among others. The group is involved in automobiles, home appliances, insurance, travel and finance. Three of its top five companies have outperformed their sectors. 

Bajaj Auto is the only stock that managed to cross the 20% ROCE threshold. It also outperformed the auto sector by 7%. Bajaj Finance (12.4%) and Bajaj Finserv (11.8%) did better than their sectors by 3.9% and 2% respectively. Bajaj Holdings & Investment has a very low ROCE of 0.6%.

Murugappa Group performs better than other family conglomerates

Among all the groups in focus, Murugappa Group has performed the best in terms of ROCE with most of its companies logging high returns on capital, and also outperforming their sectors. Among the rest, Tata and Jindal group companies have stronger returns on capital, unlike Birla. Adani, Godrej, Mahindra and Bajaj.

 
Trendlyne Marketwatch
Trendlyne Marketwatch
24 Mar 2023
Market closes lower, FIIs pull out Rs 4,648.6 crore from the market over the past week

Trendlyne Analysis

Nifty 50 closed at 16,945.05 (-131.9, -0.8%), BSE Sensex closed at 57,527.10 (-398.2, -0.7%) while the broader Nifty 500 closed at 14,279.00 (-124.6, -0.9%). Of the 1,964 stocks traded today, 388 were on the uptrend, and 1,534 went down.

Indian indices lost their ground in the afternoon session and closed sharply lower, with the volatility index, India VIX, rising over 15 points. Nifty 50 fell nearly 130 points and closed below the 17,000 mark. The government hiked STT on the sale of options and futures by 25%, effective from April 1, 2023.

Nifty Smallcap 100 and Nifty Midcap 100 closed in the red, following the benchmark index. Nifty Media, Nifty Metal and Nifty Realty closed over 2.3% lower than Thursday's closing levels. All major sectoral indices also closed lower.

Major Asian indices closed in the red, except for Taiwan’s TSEC 50 index closing higher. European indices trade at least 1% lower than Thursday’s levels, led by banks as investors continue to show concern over the stability of the financial sector.

  • HDFC Asset Management sees a short buildup in its March 29 future series as its open interest rises 5.5% with a put-call ratio of 0.51.

  • Rail Vikas Nigam's board declares an interim dividend of Rs 1.77 per equity share of Rs 10 each for FY23. The board sets April 6, 2023, as the record date.

  • Media stocks like Network 18 Media & Investments, PVR and TV18 Broadcast are falling in trade. All constituents of the broader Nifty Media index also trade in the red.

  • Zydus Lifesciences recieves final approval from the US FDA for doxepin hydrochloride capsules used for the treatment of mental/mood concerns such as depression and anxiety. It has annual sales of $2.11 million in the United States.

  • J Kumar Infraprojects' joint venture bags a contract worth Rs 249.2 crore for the construction of Baiyappanahalli depot for Bangalore Metro Rail Corporation. The company’s share in the project is Rs 137.1 crore (55%). The stock shows up in a screener for companies with strong annual EPS growth.

  • Life Insurance Company of India is planning to impose caps on its debt and equity exposure to companies as it is facing criticism for its investment in Adani group.

  • Anupam Rasayan India, Angel One and Birla Corp outperform the Nifty 500 index by 33%, 11% and 8.7% respectively in the past month.

  • Asset Management Companies like HDFC Asset Management Co, UTI Asset Management Co and Aditya Birla Sun Life AMC are falling as the Centre decides to treat gains from debt mutual funds as short-term capital gains. The broader industry of Asset Management Cos is also trading in the red.

  • Aditya Birla Sun Life AMC, Dilip Buildcon and Life Insurance Corp of India hit an all-time low of Rs 346, 177.1 and Rs 562.15 respectively.

  • Emami’s board approves a proposal to buy back shares amounting to Rs 186 crore at a price not exceeding Rs 450 per share. The stock shows up in a screener for companies with improving net cash flow over the past two years.

  • According to Reuters, analysts estimate India's trade deficit to reduce to $23 billion or 2.7% of the country's GDP in Q3FY23. This can be attributed to moderation in the goods trade gap and improvement in net services exports.

  • Foreign institutional investors pull out Rs 4,648.6 crore from the equity market over the past week, according to Trendlyne's FII dashboard. Meanwhile, index options witness the highest outflow of Rs 20,551.4 crore from foreign investors.

  • Indigo plans to expand its fleet of 350 aircraft by FY24, a 14% YoY increase. It currently holds a market share of 55% and shows up in a screener for turnaround companies – loss to profit QoQ.

  • American alternative asset management firm TPG Global is planning to sell its entire stake of 7.6% in Campus Activewear through block deals today, suggest reports.

  • ICICI Securities keeps its ‘Buy’ rating on Lemon Tree Hotels and raises its target price to Rs 132 from Rs 125, implying an upside of 77.8%. The brokerage believes that industry demand tailwinds and the firm’s room expansion plans will drive growth in the medium term. It expects the company’s revenue to grow at a CAGR of 52.6% over FY22-25.

  • Pramod Amthe, Head of Research at InCred Equities, maintains an overweight rating on cement, auto, consumer durables, defence, realty and financial services sectors. In the life insurance sector, the preferred pick remains SBI Life Insurance.

  • Zen Technologies wins a new order worth Rs 127 crore. The stock shows up in a screener for companies with high momentum scores.

  • Lupin gets tentative approval from the US FDA for its obeticholic acid tablets used in the treatment of liver diseases. The stock is trading flat and shows up in a screener with increasing revenue for the past two quarters.

  • Bharat Electronics is rising as it bags two contracts worth Rs 3,800 crore from the Ministry of Defence for the supply of different types of radar systems for the Indian Air Force. The stock has gained 37% from its 52-week low.

  • Canara Bank sells its entire stake (40%) in Moscow-based Commercial Indo Bank for Rs 121.3 crore. The stock ranks high on the Trendlyne Checklist Score.

  • Rail Vikas Nigam’s joint venture with Rachana Construction wins an order to upgrade a six-lane highway from Ahmedabad to Rajkot. The project cost is Rs 252.2 crore.

Riding High:

Largecap and midcap gainers today include Adani Green Energy Ltd. (1,029.35, 4.78%), Adani Transmission Ltd. (1,124.55, 3.70%) and Aurobindo Pharma Ltd. (500.45, 2.94%).

Downers:

Largecap and midcap losers today include Aditya Birla Capital Ltd. (144.05, -6.55%), JSW Energy Ltd. (236.70, -4.54%) and Bandhan Bank Ltd. (203.10, -4.42%).

Crowd Puller Stocks

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

Top high volume gainers on BSE included ITI Ltd. (98.20, 12.04%), Cyient Ltd. (1,001.20, 6.05%) and Minda Corporation Ltd. (210.70, 4.85%).

Top high volume losers on BSE were Sundaram Clayton Ltd. (3,853.40, -20.00%), Campus Activewear Ltd. (338.55, -8.57%) and Endurance Technologies Ltd. (1,207.00, -1.93%).

Zydus Wellness Ltd. (1,524.55, 3.64%) was trading at 12.6 times of weekly average. Shilpa Medicare Ltd. (240.95, -0.29%) and Bata India Ltd. (1,416.40, 0.01%) were trading with volumes 4.1 and 4.0 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

3 stocks overperformed with 52-week highs, while 33 stocks tanked below their 52-week lows.

Stocks touching their year highs included - Cyient Ltd. (1,001.20, 6.05%), Siemens Ltd. (3,333.45, 0.26%) and KPIT Technologies Ltd. (886.05, 0.52%).

Stocks making new 52 weeks lows included - Avanti Feeds Ltd. (332.40, -0.36%) and Bombay Burmah Trading Corporation Ltd. (831.00, -0.72%).

9 stocks climbed above their 200 day SMA including Minda Corporation Ltd. (210.70, 4.85%) and Aurobindo Pharma Ltd. (500.45, 2.94%). 14 stocks slipped below their 200 SMA including Sundaram Clayton Ltd. (3,853.40, -20.00%) and Medplus Health Services Ltd. (670.00, -6.01%).

 
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The Baseline
23 Mar 2023
Screener of the week: Stocks rising in a tough market: High revenue growth estimates, high target price upside and recent broker upgrades
By Abdullah Shah

As the financial year comes to an end and the result season approaches, we take a look at stocks that analysts are especially bullish about. These stocks have especially high revenue growth estimates in FY23.

This screenerconsists of stocks with high annual revenue growth estimates and target price upside along with price upgrades from brokers over the past three months.

The screener has 57 stocks from the Nifty 500 and nine stocks from the Nifty 50 index. It is dominated by industries like auto parts & equipment, cement & cement products and other industrial products.

Major stocks that show up in the screener are Kotak Mahindra Bank, Coromandel International, Vinati Organics, LTIMindtree, Solar Industries India and InterGlobe Aviation.

According to Trendlyne’s Forecaster, LTIMindtree has the highest revenue growth estimates of 109.6% for FY23. This rise in revenue can be attributed to the merger of Mindtree with L&T Infotech, which was completed on November 14, 2022. The stock has an average target price upside of 15%, with five target price upgrades over the past three months.

InterGlobe Aviation comes in next with a 107.8% estimated growth in revenue for FY23. The airline is planning to start flights to Nairobi, Jakarta and some central Asian destinations and is also waiting for an order of 500 aircraft to be delivered.

Coromandel International has the highest average target price upside of 39% by brokers with an annual revenue growth estimate of 53.4% in FY23. Brokers estimate this rise in revenue on the back of the seven new products launched by the company in FY23. 

You can find more screeners here.

 
Trendlyne Marketwatch
Trendlyne Marketwatch
23 Mar 2023
Market closes lower, Anupam Rasayan signs letter of intent worth Rs 984 crore

Trendlyne Analysis

Nifty 50 closed at 17,076.90 (-75, -0.4%), BSE Sensex closed at 57,925.28 (-289.3, -0.5%) while the broader Nifty 500 closed at 14,403.60 (-56.4, -0.4%). Of the 1,956 stocks traded today, 702 showed gains, and 1,195 showed losses.

Indian indices settled in the red after switching between losses and gains throughout the day, with the Nifty 50 falling below the 17,100 mark. KEC International closed higher after it bagged orders of transmission & distribution worth Rs 1,560 crore from Power Grid Corp. 

Nifty Smallcap 100 and Nifty Midcap 100 closed in the red, following the benchmark index. Nifty Infra and Nifty Bank closed lower than Wednesday’s closing levels. Maruti Suzuki India closed higher after announccing price hikes across its models starting April to partially offset the impact of overall inflation and regulatory requirements.

European stocks traded in the red as investors digested the latest interest rate hike by the U.S. Federal Reserve ahead of a policy-setting meeting by the Bank of England. Brent crude oil prices traded in the green for a fourth trading session as traders bet on rate hike pause later in the year, which could improve crude oil demand. Brent crude oil futures are up over 5% in the last four trading sessions.

  • Maruti Suzuki is set to hike the prices of vehicles, effective from April, to partially offset the effect of inflationary pressures and regulatory requirements.

  • Patel Engineering and its joint venture partner bag a contract worth Rs 3,637.1 crore from NHPC for the construction of civil works for Dibang Multipurpose Project 2880 MW. The company shows up in a screener for undervalued growth stocks.

  • Vascon Engineering receives a letter of acceptance worth Rs 158.1 crore from Superintending Engineer of PMGSY Circle, Prayagraj, for the construction of Jila Karagar at Amethi, Uttar Pradesh. The project is expected to be completed within 18 months.

  • Prabhudas Lilladher maintains its ‘Buy’ rating on Avenue Supermarts with a target price of Rs 4,699, indicating an upside of 40.1%. The brokerage believes the company’s increasing urban presence, reduced delivery time and attractive prices will drive growth in the coming quarters. It expects the firm’s net profit to rise at a CAGR of 36.5% over FY22-25.

  • Macquarie initiates coverage on InterGlobe Aviation (Indigo) with a ‘Buy’ and a target price of Rs 2,600. The brokerage says cost structure and balance sheet are the company’s key strengths for near-term growth. However, fuel prices remain a risk.

  • Anupam Rasayan is rising as it signs a letter of intent worth Rs 984 crore for six years with a Japanese chemical company. The company will supply a new-age advanced intermediate for life science active ingredients. It shows up in a screener for stocks that have gained over 20% in a month.

  • Jefferies maintains an ‘Underperform’ on Asian Paints with a target price of Rs 2,570. The brokerage says outlook on the company is improving on the back of margin headwinds in the past few quarters. It adds that the stock price has corrected 20% from its peak.

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

  • Chalet Hotels acquires 100% equity shares of Sonmil Industries for Rs 74.6 crore and 82.3% of The Dukes Retreat for Rs 81.8 crore.

  • Hero MotoCorp is rising as it announces a 2% price hike on certain motorcycles and scooters from April 1. The price hike is being implemented to cover the cost of its transition to On-Board Diagnostics II. The stock ranks medium on the Trendlyne Checklist score.

  • HG Infra Engineering is rising as it emerges as the lowest bidder (bid amount: Rs 925.1 crore) for the construction of a six-lane greenfield highway in Jharkhand. The National Highways Authority of India (NHAI) estimates the cost of the project at Rs 764 crore, with a construction period of two years.

  • Indian rupee appreciates to 82.38 from the previous close of 82.66 against the US dollar in early trade today. The rise is on the back of a weak dollar and foreign fund inflows into the domestic market.

  • Infosys, MphasiS and Ultratech Cement's weekly average delivery volumes rise ahead of their Q4FY23 results in April

  • GR Infraprojects is rising as it emerges as the lowest bidder for two projects involving construction and civil works at Dibang, Arunachal Pradesh, and building a six-lane highway from Surat to Solapur. The total project cost is Rs 4,508.29 crore. The total project cost is Rs 4,508.29 crore. GR Infraprojects had hit a 52-week low in the past week.

  • Hindustan Aeronautics is set to float an offer for sale (OFS) at Rs 2,450 per share as the Centre plans to sell a 3.5% stake in the company on March 23 and March 24. The Centre owns a 75% stake in HAL.

  • KEC International secures orders worth Rs 1,560 crore from Power Grid Corp for transmission and distribution projects. The projects involve building a transmission line and substations. However, it shows up in a screener of stocks with declining RoA for the past two years.

Riding High:

Largecap and midcap gainers today include Adani Total Gas Ltd. (982.05, 5.00%), Adani Green Energy Ltd. (982.35, 5.00%) and Adani Transmission Ltd. (1,084.40, 5.00%).

Downers:

Largecap and midcap losers today include Vedanta Ltd. (271.25, -4.94%), Hindustan Aeronautics Ltd. (2,496.35, -4.89%) and Berger Paints (India) Ltd. (575.95, -3.08%).

Volume Shockers

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

Top high volume gainers on BSE included Sun Pharma Advanced Research Company Ltd. (181.45, 11.39%), G R Infraprojects Ltd. (1,028.75, 6.58%) and Star Cement Ltd. (114.65, 6.31%).

Top high volume losers on BSE were Vedanta Ltd. (271.25, -4.94%), Hindustan Aeronautics Ltd. (2496.35, -4.89%) and Sobha Ltd. (436.35, -3.58%).

Sheela Foam Ltd. (1,053.35, -2.86%) was trading at 14.5 times of weekly average. Aegis Logistics Ltd. (393.85, 5.90%) and Prism Johnson Ltd. (106.30, 2.85%) were trading with volumes 7.2 and 6.2 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

1 stock took off, crossing 52-week highs, while 13 stocks were underachievers and hit their 52-week lows.

Stock touching their year highs included - NCC Ltd. (105.95, 1.00%).

Stocks making new 52 weeks lows included - Bombay Burmah Trading Corporation Ltd. (837.00, -0.59%) and Caplin Point Laboratories Ltd. (601.80, -0.41%).

12 stocks climbed above their 200 day SMA including Hitachi Energy India Ltd. (3,357.15, 3.39%) and Balrampur Chini Mills Ltd. (374.85, 2.88%). 5 stocks slipped below their 200 SMA including Vedanta Ltd. (271.25, -4.94%) and IRB Infrastructure Developers Ltd. (24.80, -2.55%).

 
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The Baseline
22 Mar 2023
Chart of the week: Stocks that beat a volatile market to increase their momentum scores
By Abdullah Shah

India’s benchmark index, the Nifty 50 has dropped 4.4% over the past month due to weak market sentiment caused by the banking crisis in the US and Europe. Banks like the Silicon Valley Bank (SVB) in the US and Credit Suisse Bank in Europe have faced a crisis where SVB was forced to shut down, and UBS bought Credit Suisse in the midst of a liquidity crunch for $3.2 billion. 

However, despite weak market sentiment, some stocks have bucked the trend and risen over the past month, with a jump in their Trendlyne momentum scores signalling rising buying interest.

This screener shows stocks whose momentum scores are above 50 and have risen sharply compared to the previous month and week.  A stock scoring above 50 is considered to be moving into the bullish zone. Trendlyne’s Momentum Score is calculated for each stock every day based on more than 30 different technical indicators, and helps identify stocks that are bullish or bearish across multiple metrics.

Many stocks in the rising momentum screener belong to the pharmaceuticals and healthcare facilities industries, as these are considered to be defensive and relatively immune to economic slowdowns.

Pharmaceuticals and healthcare facilities stocks like Abbott India, Torrent Pharmaceuticals and Max Healthcare have seen their momentum scores improve by 13.9, 10.2 and 14.9 points respectively. This aided Max Healthcare and Torrent Pharma to jump to the good momentum score classification (Trendlyne momentum score > 50) from a medium classification. 

Oil marketing companies like Bharat Petroleum Corp and paint companies like Berger Paints (India) have been rising since Brent crude price fell below $80 per barrel in December. Drop in crude prices also aids paint stocks as oil is a raw material used to produce paints.

Bharat Petroleum’s Trendlyne momentum score jumped by 16.3 points over the past month, while Berger Paints’ momentum score rose by 13.8 points over the same period helping the stocks to classify in the good momentum score category. Brent crude prices also hit a 15-month low of $ 70.9 per barrel on Tuesday which could help these stocks to rise further.

Godrej Consumer Goods’ momentum score improved by 11.3 points to 65.9 over the past 30 days. The stock touched its 52-week high of Rs 964 on Tuesday and is currently trading above all its SMAs. 

Power Grid Corp has risen 3.4% over the past month aiding the stock’s momentum score jump by 33.6 points. The electric utilities stock rose on the back of four order wins over the past month while also approving a capex of Rs 4,071 crore for expansion in the eastern region and the commission of the transmission system in Kurnool Wind Energy Zone.

See the full screener here.

 
Trendlyne Marketwatch
Trendlyne Marketwatch
22 Mar 2023
Market closes higher, Sharekhan keeps 'Buy' rating on Thermax

Trendlyne Analysis

Nifty 50 closed at 17,151.90 (44.4, 0.3%), BSE Sensexclosed at 58,214.59 (139.9, 0.2%) while the broader Nifty 500 closed at 14,460.00 (48.7, 0.3%). Of the 1,954 stocks traded today, 1,138 showed gains, and 737 showed losses.

Indian indices closed in the green, with the volatility index, India VIX, falling below 15. Nifty 50 rose nearly 35 points and closed above the 17,100 mark. Indian Oil Corp's board has given in-principle approval to prepare a feasibility report to set up a petrochemical complex at Paradip, Odisha, at an estimated cost of Rs 61,077 crore.

Nifty Smallcap 100 and Nifty Midcap 100 closed higher than Tuesday’s level, following the benchmark index. Nifty Media closed over 0.52% lower than Tuesday's closing levels. Nifty IT closed higher, tailing the Nasdaq 100 futures trading in the green.

Major Asian indices closed in the green. European stocks trade mixed with England’s FTSE 100 and Switzerland’s SMI trading lower than Tuesday’s level. US indices futures trade higher than Tuesday’s levels, indicating a positive start for the day. US Federal Reserve is expected to hike interest rates by 25 bps later today. However, investors are awaiting the commentary by US Fed on the banking crisis.

  • Money flow index (MFI) indicates that stocks like Anupam Rasayan India, Bharat Petroleum Corp, NCC and Sudarshan Chemical Industries are in the overbought zone.

  • GAIL is rising as the Petroleum and Natural Gas Regulatory Board (PNGRB) raises its tariff by 45% to Rs 58.6 per MMBtu.

  • Gensol Engineering is rising as it is set to acquire a 100% stake in Scorpius Trackers, a solar tracker solutions company, for Rs 135 crore. The stock shows up in a screener for companies with strong annual EPS growth.

  • NBCC bags a project worth Rs 50 crore from the National Film Development Corp (NFDC) to repair and renovate the Film Division at Peddar Road, Mumbai. Its arm, HSCC, also wins two contracts involving the construction of a 150-bed critical care block in Chandigarh for Rs 130 crore and a hospital in Nashik, Maharashtra, for Rs 348.4 crore.

  • GR Infraprojects and Motilal Oswal Financial Services reach their 52-week lows of Rs 962.6 and Rs 567.1 per share respectively. GR Infra falls 14.8% and the other 13.5% over the past month.

  • IFC invests Rs 240 crore in JK Tyre & Industries to expand manufacturing capacity and integrate advanced, resource-efficient technologies in the production of tyres.

  • Reports suggest that 15 lakh shares (0.94% equity) of Kajaria Ceramics, amounting to Rs 156.52 crore, change hands in a large trade.

  • Sharekhan maintains its ‘Buy’ rating on Thermax with a target price of Rs 2,790, implying an upside of 20.9%. The brokerage remains positive about the company due to its robust order book, strong execution & technological capabilities in green energy and healthy balance sheet. It expects the firm’s revenue to grow at a CAGR of 21.8% over FY22-25.

  • Tata Motors rises as it announces price hikes across its commercial vehicles segment. The price changes, effective from April 1, will comply with the BS6 Phase 2 emission norms, says the management.

  • Reports suggest that 6.65 lakh shares (0.13% equity) of Pidilite, amounting to Rs 158.50 crore, change hands in a large trade.

  • Larsen & Toubro's arm L&T Construction wins orders worth Rs 1,000-2,500 crore from the drinking water and sanitation department of the Government of Jharkhand to execute a raw water transport system.

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

  • Sula Vineyards rises over 10% in two sessions after CLSA initiates coverage on the stock with a ‘Buy’ and a target price of Rs 475. The brokerage says the company can leverage the change in consumer demand towards the low-alcoholic beverage segment. IIFL Securities also initiates a ‘Buy’, expecting sales growth of 18.7% over FY22-25E.

  • Aarti Drugs, KPIT Technologies and Anupam Rasayan India outperform the Nifty 50 index by 16%, 15.4% and 13.5% respectively in the past week.

  • Patel Engineering is rising as it bags a contract worth Rs 551 crore from Visvesvaraya Jala Nigam, in partnership with its joint venture. The contract is for the survey, design, installation and testing of a micro-irrigation project in the Tumkur Branch Canal.

  • Sobha is down as the Income Tax Department conducts a search at its registered office and other premises. The stock is trading near its 52-week low.

  • Sonata Software is rising as it signs its largest-ever deal with a total contract value of $160 million for 10 years with a US-based consumer retailer. The company will manage the end-to-end IT modernisation and transformation for its client. The company ranks high on Trendlyne’s checklist with a score of 69.57%.

  • Lupin is rising as the company receives approval from the US FDA for its abbreviated new drug application (ANDA) for Brexpiprazole tablets. The tablets are used for the treatment of schizophrenia and depression. According to IQVIA, the drug had an estimated annual sales of $1,575 million in CY22 in the US.

  • Keshav Bhajanka, Executive Director at Century Plyboards, says medium-density fiberboard (MDF) will boost growth for the company. He adds that the company has taken a price hike of 2% in plywood on the back of high timber prices.

  • Ashiana Housing is rising as its annual bookings beat its guidance of Rs 1,100 crore for FY23. The total booking value up to March 20 stands at Rs 1,278.8 crore. The stock shows up in a screener for companies with low debt.

  • Zydus Lifesciences receives US FDA approval for Tofacitinib tablets used to treat moderate to severe rheumatoid arthritis and active psoriatic arthritis in adult patients. Tofacitinib tablets have annual sales of $900 million in the United States.

  • Emami rises more than 5% in trade as its board is set to meet on Friday to consider a buyback proposal. The details of the buyback are yet to be disclosed. The stock touches a 52-week low in the past week.

  • Citigroup maintains its ‘Sell’ rating on Hindustan Zinc with a target price of Rs 260. According to the brokerage, the company announced 4th interim dividend of Rs 26 per share yesterday, taking the total dividend for FY23 to Rs 75.5 per share.

  • Indian Oil Corp's board has given an in-principle approval to prepare a feasibility report to set up a petrochemical complex at Paradip, Odisha, at an estimated cost of Rs 61,077 crore. This project will improve the company’s petrochemical intensity index, de-risk its fossil fuel business and report import dependency.

  • HG Infra Engineering is rising as it emerges as the lowest bidder for a North Central Railway project. The Rs 655 crore project involves the redevelopment of Kanpur Central Railway Station. The stock has touched a 52-week high in the past week.

  • Bandhan Bank’s board approves the proposal to transfer loans originating from banking units (BU) & written-off portfolio worth Rs 2,614 crore and NPAs worth Rs 2,316.3 crore to Asset Reconstruction Co. The bank receives binding bids of Rs 369.2 crore for the written-off portfolio and Rs 370.6 crore for the NPA portfolio on a consideration basis.

Riding High:

Largecap and midcap gainers today include One97 Communications Ltd. (624.05, 6.88%), Emami Ltd. (366.30, 6.17%) and Adani Green Energy Ltd. (935.60, 5.00%).

Downers:

Largecap and midcap losers today include ABB India Ltd. (3,309.90, -3.00%), PB Fintech Ltd. (575.30, -2.34%) and Steel Authority of India (SAIL) Ltd. (85.05, -2.30%).

Volume Shockers

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

Top high volume gainers on BSE included Fine Organic Industries Ltd. (4,406.30, 8.26%), One97 Communications Ltd. (624.05, 6.88%) and Emami Ltd. (366.30, 6.17%).

Top high volume losers on BSE were Sobha Ltd. (452.55, -12.85%), Krishna Institute of Medical Sciences Ltd. (1,325.15, -0.48%) and Kajaria Ceramics Ltd. (1051.35, -0.29%).

Uflex Ltd. (367.30, 5.80%) was trading at 10.3 times of weekly average. Eureka Forbes Ltd. (459.00, 0.90%) and Trident Ltd. (27.85, 2.58%) were trading with volumes 9.3 and 6.4 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

2 stocks hit their 52-week highs, while 12 stocks tanked below their 52-week lows.

Stocks touching their year highs included - Siemens Ltd. (3,307.40, -0.17%) and KPIT Technologies Ltd. (894.80, 1.98%).

Stocks making new 52 weeks lows included - Avanti Feeds Ltd. (334.15, -0.04%) and Caplin Point Laboratories Ltd. (604.80, -1.57%).

16 stocks climbed above their 200 day SMA including 360 One Wam Ltd. (424.00, 5.62%) and Can Fin Homes Ltd. (547.80, 3.03%). 5 stocks slipped below their 200 SMA including Orient Electric Ltd. (268.20, -1.31%) and Just Dial Ltd. (592.55, -1.27%).

 
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The Baseline
21 Mar 2023
Five analyst picks this week
By Abhiraj Panchal
  1. Data Patterns (India): ICICI Direct upgrades its rating to ‘Buy’ from ‘Hold’ on this defence and aerospace electronics company with a target price of Rs 1,555. This indicates an upside of 10.4%. The company’s board has approved the allotment of 40.97 lakh shares through QIP, at an issue price of Rs 1,220.31 per share, aggregating to Rs 500 crore. Analysts Chirag Shah and Vijay Goel “believe that fundraising for working capital and product development will benefit the company in faster execution of existing contracts, and in bidding for more contracts”.

The analysts are optimistic as the defence player has strong order inflows with a healthy pipeline of orders worth Rs 2,000-3,000 crore in the next three years. They also expect electronic components used in Indian defence platforms to be sourced locally, instead of from foreign manufacturers, as indigenisation efforts continue.

Shah and Goel anticipate revenue and profit CAGR of 29.3% and 28.5% respectively over FY22-25.

  1. Kalpataru Power Transmissions: Sharekhan maintains a ‘Buy’ call on this electric utilities company with a target price of Rs 695, indicating an upside of 22.3%. “Our interaction with Kalpataru Power Transmission reinstates the positive stance on the company’s capability to accelerate its revenue growth and margin expansion,” say the analysts.

    They believe that the company is a leading player with a strong order book (Rs 46,642 crore, up 46% YoY) as well as fresh orders (surpassed order inflow guidance for FY23), which will lead to improved revenue visibility. 

They are also positive about the company due to its merger with JMC Projects. The merger is expected to increase the group’s geographical reach and improve its capability to bid for large-size and more complex projects. According to the analysts, the company also expects a decline in debt and improvement in the working capital cycle thanks to better operating performance and monetisation of non-core assets.

  1. PVR: Prabhudas Lilladher retains its ‘Buy’ call on this multiplex company with a target price of Rs 2,096, indicating an upside of 33.1%. Analysts Jinesh Joshi and Stuti Beria expect synergy benefits of Rs 200 crore from the PVR-Inox merger to accrue over the next two years. They expect that the merger will enhance balance sheet strength, enabling rapid expansion into new markets. 

Joshi and Beria believe that the merged entity will lend a size advantage and improve bargaining power with various stakeholders in the value chain, like film distributors, real estate developers, ad networks and ticket aggregators, resulting in material revenue/cost synergies. 

The analysts are also positive about PVR and estimate that it will open 155 screens per annum for the next two years after the merger.

  1. LTIMindtree: ICICI Securities maintains its ‘Buy’ rating on this IT consulting & software company with a target price of Rs 5,651, implying an upside of 21%. Analysts Sumit Jain and Aditi Patil are positive about the company’s prospects on the back of strong cross-selling opportunities and its ability to bag larger deals post-merger. They believe that Larsen & Toubro Infotech (LTI) and Mindtree complement each other and this allows them to scale up operations.

    According to the analysts, “Mindtree is stronger in front-end digital solutions and LTI shines in back-end ERP-related core transformation solutions.” They expect the company’s EBIT margin to improve by 260 bps over FY23-26 to 18.6%, driven by operating leverage with a higher scale of operations and integration-related synergies. 

Jain and Patil believe that, with their track record of strong management execution, the combined entity’s management is well-equipped to enable industry-leading profit growth in the coming quarters. The analysts expect the firm’s net profit to grow at a CAGR of 18.8% over FY22-25.

  1. Tata Motors: Motilal Oswal keeps its ‘Buy’ rating on this automobile manufacturer with a target price of Rs 540, indicating an upside of 31.3%. Analysts Jinesh Gandhi, Amber Shukla and Aniket Desai believe that the Jaguar Land Rover (JLR) brand is on a sustainable growth path and will be one of the key drivers of growth for the company. They add that Tata Motor’s domestic passenger and commercial vehicle business is already on a healthy growth trend. They see the prospects of JLR improving as supply-side pressures subside and demand remains healthy. “As supplies improve, JLR should reach near zero net debt levels by FY25, thanks to improved production, better margins and working capital release,” the analysts say.

Gandhi, Shukla and Desai believe JLR will firmly position itself as a luxury premium brand as it changes its branding strategy and redefines Jaguar with premium launches in the electric vehicle market in CY25. The analysts expect the company’s revenue to grow at a CAGR of 14.2% over FY23-25. 

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

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