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Trendlyne Marketwatch
Trendlyne Marketwatch
20 Jan 2023
Market closes lower, HDFC Life Insurance's Q3 net profit rises 15.2% YoY to Rs 315.2 crore

Trendlyne Analysis

Indian indices closed in the red, with the Nifty 50 falling below the 18,000 mark. However, the benchmark Nifty 50 index posted a weekly gain of 0.4 %. European stocks traded higher than Thursday’s levels. Most major Asian indices also closed in the green, despite the US indices closing lower on Thursday. US stocks fell as investors continued to assess several economic data such as retail sales and industrial production. The tech-heavy Nasdaq 100 fell 1% while the Dow Jones closed 0.8% lower. However, US indices’ futures are currently trading in the green.

European Central Bank President Christine Lagarde said inflation is too high and that ECB is determined to bring it back to 2% at the ongoing five-day World Economic Forum's annual meeting. Investors continue to assess the impact of high inflation on company financials as the result season is in full swing. Crude oil prices are set to post a second straight weekly advance as China's outlook brightens amid the reopening of its economy.

Nifty Smallcap 100 and Nifty Midcap 100 closed in the red, following the benchmark index. Nifty Realty and Nifty FMCG closed lower than Thursday’s closing levels. Nifty IT also closed lower, following the tech-heavy Nasdaq 100, which closed in the red on Thursday.

Nifty 50closed at 18,027.65 (-80.2, -0.4%), BSE Sensexclosed at 60,621.77 (-236.7, -0.4%) while the broader Nifty 500closed at 15,347.90 (-71.8, -0.5%)

Market breadth is in the red. Of the 1,961 stocks traded today, 733 showed gains, and 1,162 showed losses.

  • Relative strength index(RSI) indicates that stocks like Max Financial Services, Hindustan Zinc, Edelweiss Financial Servicesand Swan Energyare in the overbought zone.

  • HDFC Life Insurance Co’s Q3FY23 net profit rises 15.2% YoY to Rs 315.2 crore. Its net premium income increases 18.6% YoY as its renewal premiums grow 29.7% YoY. The value of new business for 9MFY23 also rises 22% YoY. The stock shows up in a screener for companies with improving net cash flow for the past two years.

  • Laurus Labsreceives the establishment inspection report (EIR) from the US FDA for the pre-approval inspection (PAI) conducted at its manufacturing facility in Andhra Pradesh from October 24 to 28, 2022. The company features in a screenerof stocks which have a strong cash-generating ability from its core business.

  • PVR posts a net profit of Rs 15.9 crore for Q3FY23 against a net loss of Rs 10.2 crore in Q3FY22. Its revenue increases 35% YoY on the back of an increase in the average ticket price, admits and spending per head. Content releases have also contributed to the revenue increase. It shows up in a screener of turnaround companies – loss to profit QoQ.

  • Rating Agency Moody’s Investors Service retains the Baa3 rating on State Bank of India, while it upgrades ratings for Punjab National Bank, Canara Bank and Bank of Baroda to Baa3 from Ba1. The agency expects healthy asset quality for the next 12-18 months and has a stable outlook on the four banks.

  • ICICI Securities upgrades its rating on AU Small Finance Bank to ‘Add’ from ‘Hold’, with a target price of Rs 700. This indicates an upside of 13.3%. The brokerage turns optimistic toward the firm’s prospects given its robust credit growth, stable net interest margins and improving provision coverage ratio. It expects the company’s net profit to grow at a CAGR of 22.7% over FY22-25.

  • Amit Syngle, CEO of Asian Paints, says that the company’s sales have been impacted by extended monsoons. He adds that the margin will improve to 2%, aided by backward integration.

  • Jindal Stainless, Macrotech Developers and Sterlite Technologies see a positive shift in their share prices ahead of Q3FY23 results in January.

  • 360 One Wam touches an all-time high as its Q3FY23 net profit rises 16% YoY to Rs 180 crore. The rise in revenue from wealth management and asset management has aided revenue to grow 10% YoY to Rs 415 crore. The company shows up in a screener of stocks with increasing profit for the past three quarters.

  • Fertilizers, Metals & Mining, and Cement & Constructionsectors rise more than 13% in the past 90 days.

  • Anil Rai Gupta, Managing Director of Havells India, says B2C demand is weak amid inflationary pressures and expects it to continue over the next two quarters. He adds that the company will take price hikes of 3-4% due to the rate change in fans.

  • Hindustan Zinc is falling in trade after its Q3FY23 net profit dips 20% YoY to Rs 2,156 as revenue decreases 2.7% YoY and expenses rise 14% YoY. The rise in expenses is because of increase in power and fuel costs. The company shows up in a screener of stocks with high momentum scores.

  • Jubilant Foodworks plans a capex of Rs 900 crore funded through internal accruals over the next 12 to 18 months. It is likely to invest Rs 500 crore to Rs 600 crore in stores, including re-imaging and maintenance. The Bangalore commissary is expected to be operational by Q1FY24 with a planned investment of Rs 250 crore.

  • Jefferies says that Cholamandalam Investment & Finance is a top pick in the NBFC space as they expect the company's EPS to stand at 24%. The brokerage expects a loan CAGR of 22% over FY23-25E.

  • L&T Technology Services’ Q3FY23 net profit rises 7.5% QoQ to Rs 303.6 crore and EBIT margin expands 60 bps QoQ to 18.7%. The firm’s revenue increases 2.7% QoQ, driven by its transportation and industrial products segments. The stock ranks high on the Trendlyne checklist with a score of 60.9%.

  • Surya Roshni rises after it bags an order worth Rs 147.3 crore for the supply of coated and bare pipes from Indian Oil Corp. It also wins an order for power-coated GI pipes from GAIL. The company shows up in a screener of stocks with high TTM EPS growth.

  • Indian rupee appreciates to 81.26 from the previous close of 81.36 against the US dollar in early trade today.

  • Porinju Veliyath sells a 0.5% stake in Kerala Ayurveda in Q3FY23, now holds 1.9% in the company.

  • Vijay Kedia adds Siyaram Silk Mills to his portfolio in Q3FY23, buys a 1.1% stake in the company.

  • Bharat Heavy Electricals is rising as it bags an order worth Rs 300 crore from the Gujarat State Electricity Corp. The order pertains to the renovation and modernisation of steam turbines at the Ukai Thermal Power Station in Gujarat.

  • Sun Pharmaceutical Industries decides to acquire US-based Concert Pharmaceuticals for $576 million (Rs 4,674.5 crore). The company believes this will strengthen its dermatology product range in the US. The stock shows up in a screener which lists the top Indian exporters among listed companies.

  • Hindustan Unilever’s Q3FY23 net profit rises 7.7% YoY to Rs 2,474 crore and revenue grows 16.1% YoY. This comes on the back of home care and beauty & personal care segments rising 31.5% YoY and 10.6% YoY respectively. The stock shows up in a screener for companies with revenue rising sequentially for the past four quarters.

Riding High:

Largecap and midcap gainers today include One97 Communications Ltd. (550.85, 3.55%), Coforge Ltd. (4,102.00, 3.41%) and Hindustan Aeronautics Ltd. (2,509.50, 2.31%).

Downers:

Largecap and midcap losers today include Hindustan Zinc Ltd. (353.00, -6.50%), L&T Technology Services Ltd. (3,230.70, -4.90%) and TVS Motor Company Ltd. (969.90, -4.35%).

Volume Shockers

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

Top high volume gainers on BSE included Sobha Ltd. (617.30, 4.71%), Engineers India Ltd. (87.90, 4.46%) and Shyam Metalics and Energy Ltd. (326.15, 4.17%).

Top high volume losers on BSE were Hindustan Zinc Ltd. (353.00, -6.50%), Atul Ltd. (7,431.45, -4.13%) and PVR Ltd. (1,610.90, -3.99%).

DCM Shriram Ltd. (898.15, 0.33%) was trading at 9.8 times of weekly average. Coforge Ltd. (4,102.00, 3.41%) and Sterling and Wilson Renewable Energy Ltd. (272.60, 3.34%) were trading with volumes 9.7 and 8.2 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

7 stocks hit their 52-week highs, while 14 stocks tanked below their 52-week lows.

Stocks touching their year highs included - Swan Energy Ltd. (361.00, 0.74%), Engineers India Ltd. (87.90, 4.46%) and APL Apollo Tubes Ltd. (1,196.70, 1.64%).

Stocks making new 52 weeks lows included - Atul Ltd. (7,431.45, -4.13%) and Indus Towers Ltd. (171.45, -2.75%).

7 stocks climbed above their 200 day SMA including Shyam Metalics and Energy Ltd. (326.15, 4.17%) and Chemplast Sanmar Ltd. (451.10, 1.42%). 13 stocks slipped below their 200 SMA including Aditya Birla Sun Life AMC Ltd. (443.40, -3.17%) and ICICI Securities Ltd. (500.00, -2.41%).

 
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The Baseline
19 Jan 2023
Banks to see a boost in margins from credit growth
By Shreesh Biradar

The Indian banking sector is in the spotlight for investors, with the highest credit growth in a decade. Credit growth is expected to rise in tandem with rising corporate demand. PSU banks valuation has risen in the last two quarters. The Nifty Bank index has risen more than 20% in the last six months with Nifty PSU Bank rising 60%. …

PremiumThis is a premium article. Click here to read.

 
Trendlyne Marketwatch
Trendlyne Marketwatch
19 Jan 2023
Market closes lower, HDFC Securities keeps 'Buy' rating on Angel One

Trendlyne Analysis

Nifty 50 closed in the red, below the 18,100 mark. European indices traded lower than Wednesday’s levels. Major Asian indices closed in the green, barring Japan's Nikkei 225 index and China’s Hang Seng index, which closed lower than Wednesday’s level. On Wednesday, the S&P 500 closed 1.6% lower while the Dow Jones fell 1.86% on a volatile day of trade.

US economic data released on Wednesday showed retail sales dropped by 1.1%, slightly more than the 1.0% estimated by analysts. US industrial production in December fell by 0.7% vs analyst estimates of 0.1% and November output dropped by 0.6%, lower than analyst estimates of 0.2%. The tech-heavy Nasdaq 100 index closed 1.3% lower than Tuesday’s closing level. Brent crude oil futures traded trade lower as industry data released by the US on Wednesday indicated a weekly build-up in US crude inventories.

Nifty Smallcap 100 and Nifty Midcap 100 closed in the red, following the benchmark index. All the major sectoral indices closed in the red barring Nifty PSU Bank, which closed higher than Wednesday’s level. Nifty IT closed in the green, despite Nasdaq 100 closing lower on Wednesday.

Nifty 50closed at 18,107.85 (-57.5, -0.3%), BSE Sensexclosed at 60,858.43 (-187.3, -0.3%) while the broader Nifty 500closed at 15,419.70 (-46.7, -0.3%)

Market breadth is in the red. Of the 1,951 stocks traded today, 766 were on the uptick, and 1,118 were down.

  • IndusInd Banksees a short buildup in its January 25 future series as its open interest rises 11.5% with a put-call ratio of 0.36.

  • Asian Paints, Titanand Tata Powerare trading below their third support or S3level as the market trades lower.

  • Happiest Minds is falling as its consolidated net profit dips 3.1% QoQ to Rs 57.6 crore on the back of employee costs as a percentage of revenue rises by 110 bps QoQ. Revenue increases by 3.2% QoQ to Rs 366.9 crore. The stock shows up in a screenerfor companies with revenue growing sequentially for the past eight quarters.

  • Domestic air traffic grows 14% YoY to around 1.3 crore passengers in December 2022. Indigo and Vistara lose 80 bps and 10bps MoM in market share respectively.

  • Asian Paints is falling despite its net profit rising 5.6% YoY to Rs 1,072.7 crore on account of falling raw material prices. Revenue grows by only 1.7% YoY on account of muted demand. The stock shows up in a screener for companies with decreasing promoter pledges.

  • ICICI Securities is falling as its net profit declines by 26.7% YoY to Rs 280.5 crore in Q3FY23. The fall in income from the services and brokerage segment has caused the revenue to reduce by 6.7% YoY. The company shows up in a screener of stocks with declining quarterly net profit and profit margin (YoY).

  • Alembic Pharmaceuticals is rising as it receives tentative approval from the US FDA for its abbreviated new drug application (ANDA) for 'acalabrutinib' capsules. It has an estimated market value of $1.5 billion for the year ending September 2022, according to IQVIA. The drug is equivalent to the reference listed drug product (RLD) of AstraZeneca UK.

  • Tata Investment Corp, ICICI Prudential Life Insurance and Avenue Supermarts see a fall in net profit growth both QoQ and YoY after declaring their Q3FY23 results in the past week.

  • HDFC Securities maintains its ‘Buy’ rating on Angel One but reduces its target price to Rs 1,800 from Rs 2,020. However, this is an upside of 40.7% from the current price. The brokerage cites a drop in the company's 12-month rolling activation rates for its target price revision. It remains positive on the firm’s prospects given its flat-fee model, lean cost structure and market leadership.

  • Aneel Gambhir, CFO of Blue Dart Express, says there is softening of demand after the festive season but expects it to pick up soon. He adds that the company plans to add 100 stores in a year time and expand its retail footprint.

  • Rallis India is falling as its Q3FY23 net profit and exports decrease 43% YoY to Rs 22.6 crore and 6.5% respectively. EBITDA margin also dips 220 bps YoY due to higher marketing expenses. Commenting on the results, Sanjiv Lal, MD & CEO of the company, said, "Our Q3 revenues witnessed 0.3% growth over past year against the backdrop of erratic rainfall in the domestic market and headwinds in International business."

  • Hotels, Restaurants & Tourism, Media and Retailing sectors fall more than 6.5% in trade in the past month.

  • RattanIndia Enterprises’ annual RoCE stands at 77.6%, outperforms its industry by 68.1%.

  • Tata Steel is rising as around 33.3 lakh shares (0.26% equity) amounting to Rs 39.9 crore change hands in a large trade, according to reports.

  • IndusInd Bank’s Q3FY23 net profit rises 58% YoY to Rs 1,964 crore and net interest income grows 18% YoY. Net NPA also increases marginally to 0.62% in Q3. The bank shows up in a screener of stocks with a decrease in provision in recent results.

  • UBS downgrades its rating on Titan to ‘Neutral’ from ‘Buy’ and cuts the target price to Rs 2,600 from Rs 3,000. The brokerage expects jewellery demand to be weak in FY24 due to rising gold prices and lower pandemic savings.

  • Rakesh Jhunjhunwala's portfolio cuts 0.2% stake in Fortis Healthcare in Q3FY23, now holds 4.5% in the company.

  • Ashish Kacholia buys a 0.6% stake in SJS Enterprises in Q3FY23, now holds 4.4% in the company.

  • Mahindra Lifespace Developers is rising as it announces redevelopment projects related to residential societies in Santa Cruz, Mumbai. The revenue potential of this project is Rs 500 crore. The company shows up in a screener of stocks with low debt.

  • The US FDA issues Form 483 with two observations to Aurobindo Pharma’s subsidiary APL Health Care located in Telangana. The observations are procedural in nature. The stock is trading near its 52-week low.

  • Vedanta rises as its board approves the acquisition of Meenakshi Energy, a 1,000 megawatt coal power plant, for Rs 1,440 crore. The acquisition is likely to be completed by FY24.

  • Persistent Systems’ standalone Q3FY23 net profit and revenue rise 8.2% QoQ to Rs 237.9 crore and 5.9% respectively. Its EBIT margin increases to 15.4% from 14.6% in Q2FY23. However, the company also reports an increase in expenses by 44% QoQ because of a rise in employee benefit expenses. The company has declared an interim dividend of Rs 28 per share for FY23.

Riding High:

Largecap and midcap gainers today include Persistent Systems Ltd. (4,258.15, 7.54%), Hindustan Zinc Ltd. (377.55, 4.48%) and Coal India Ltd. (223.95, 3.27%).

Downers:

Largecap and midcap losers today include Adani Green Energy Ltd. (1,954.30, -6.80%), Torrent Power Ltd. (455.75, -4.96%) and Adani Enterprises Ltd. (3,463.55, -3.70%).

Volume Rockets

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

Top high volume gainers on BSE included Persistent Systems Ltd. (4,258.15, 7.54%), Prism Johnson Ltd. (108.95, 5.47%) and KEI Industries Ltd. (1,539.75, 4.97%).

Top high volume losers on BSE were Rallis India Ltd. (223.90, -8.80%), Torrent Power Ltd. (455.75, -4.96%) and Alok Industries Ltd. (14.40, -3.68%).

Mahindra Lifespace Developers Ltd. (365.00, 4.95%) was trading at 15.0 times of weekly average. Amber Enterprises India Ltd. (1,869.75, 0.62%) and Orient Electric Ltd. (264.90, 1.13%) were trading with volumes 6.1 and 5.5 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

6 stocks hit their 52-week highs, while 10 stocks were underachievers and hit their 52-week lows.

Stocks touching their year highs included - Hindustan Zinc Ltd. (377.55, 4.48%), Swan Energy Ltd. (358.35, 4.93%) and APL Apollo Tubes Ltd. (1,177.40, -0.97%).

Stocks making new 52 weeks lows included - GlaxoSmithKline Pharmaceuticals Ltd. (1,298.15, -0.50%) and Natco Pharma Ltd. (534.50, -1.14%).

6 stocks climbed above their 200 day SMA including Shyam Metalics and Energy Ltd. (313.10, 2.93%) and UPL Ltd. (747.55, 2.08%). 9 stocks slipped below their 200 SMA including Rallis India Ltd. (223.90, -8.80%) and ICICI Lombard General Insurance Company Ltd. (1,169.60, -2.55%).

 
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The Baseline
19 Jan 2023
Screener of the week: Stocks seeing mutual funds significantly raise stake in Q3FY23
By Abdullah Shah

In this week’s edition, we take a look at new mutual fund stock picks of Q3. This screener identifies stocks where mutual funds have increased their stake by over 0.5% and have a Trendlyne durability score of more than 50. There are 38 stocks from the Nifty 500 index and three stocks from the Nifty 50. 

The screener includes stocks from banking and finance, healthcare facilities, internet software & services and industrial machinery. Major stocks listed in the screener are GMM Pfaudler, Zee Entertainment Enterprises, Apollo Hospitals Enterprise, Affle (India) and Union Bank of India.

GMM Pfaudler has seen the highest rise in its MF holding on a QoQ basis in Q3. Aditya Birla Sun Life Flexi Cap Fund, which bought a 1.2% stake in the company, is the largest buyer. The company’s promoters have sold a 11% stake, which FIIs and domestic funds picked up. The stock has a Trendlyne durability score of 70.

Zee Entertainment Enterprises comes in next with a mutual fund holding rise of 4.5 percentage points QoQ in Q3. ICICI Prudential Bluechip Fund is the largest buyer with a 0.53% stake in the company. It has a Trendlyne durability score of 55. 

Apollo Hospitals has seen its mutual fund holding rise 1.4 percentage points QoQ in Q3. HDFC Flexi Cap Fund becomes the biggest buyer with a 1.2% stake in this healthcare player. 

You can find some popular screenershere.

 
Trendlyne Marketwatch
Trendlyne Marketwatch
18 Jan 2023
Market closes higher, Sojitz Corporation sells 1.57% stake in Samvardhana Motherson International

Trendlyne Analysis

Indian indices closed in the green, with the Nifty 50 closing above the 18,150 mark. European stocks traded higher than Tuesday’s levels. British CPI fell to 10.5% in December from November’s 10.7%, in line with analysts’ expectations. Major Asian indices closed in the green despite the US indices closing mixed on Tuesday. Bank of japan held its main policy setting, leaving the negative interest rate unchanged at -0.1%.

Major US index Dow Jones fell over 1% led by Goldman Sachs after the investment bank’s results missed analysts’ estimates by a significant margin. However, the tech-heavy Nasdaq 100 index closed 0.1% higher and the S&P 500 fell 0.2% on Tuesday. Brent crude oil futures traded higher after rising over 3% on Tuesday amid cooling inflation prints globally and reopening of China, leading to a rise in crude oil demand.

Nifty Midcap 100 closed in the green, following the benchmark index. Nifty Energyand Nifty PSU Bank closed lower than Tuesday’s close. Nifty IT closed in the green, taking cues from the Nasdaq 100, which closed higher on Tuesday.

Nifty 50closed at 18,165.35 (112.1, 0.6%), BSE Sensexclosed at 61,045.74 (390.0, 0.6%) while the broader Nifty 500closed at 15,466.35 (70.2, 0.5%)

Market breadth is in the green. Of the 1,951 stocks traded today, 1,007 showed gains, and 873 showed losses.

  • HCL TechnologiesbeatsWipro's YoY and QoQ revenue & profit growth, annual RoE, FII holdings and broker average rating. But lags in PE ratio, price-to-book value & broker average target upside percentage.

  • Polyplex Corprises over 10% in trade and is one of the high-volume, high-gainer stocks today. The stock ranks high on Trendlyne’s checklist, scoring 78.3%. It features in a screenerof companies with consistent high returns over five years.

  • Indian Bank, Voltas, Sundaram Finance and Delhivery are trading below their second support or S2 level despite the market trading higher.

  • Central Bank of India’s Q3FY23 net profit increases 64.16% YoY to Rs 458 crore, with net interest income rising 19.9%. Asset quality improves significantly as gross NPA and net NPA fall 631 bps and 230 bps YoY respectively. The bank shows up in a screener of stocks with high TTM EPS growth.

  • Strides Pharma Sciences’ flagship facility in Bengaluru receives establishment inspection report (EIR) from the US Food & Drug Administration. The EIR pertains to drug-device combination products to be manufactured at the flagship facility.

  • Sojitz Corporation sells a 1.57% stake (10.6 crore shares) worth Rs 776.3 crore in Samvardhana Motherson International in a bulk deal. The stock is trading flat in trade today.

  • JSW Steel, Union Bank of India and Aether Industries see a positive shift in their share prices ahead of Q3FY23 results in January.

  • Reports suggest that around 10.2 lakh shares (0.22% equity) of ICICI Lombard General Insurance Co, amounting to Rs 121.4 crore, change hands in a large trade.

  • Sheela Foam, Sapphire Foods India and FSN E-Commerce Ventures (Nykaa) see a rise in mutual fund (MF) holdings MoM by 21.7%, 6.9% and 6% respectively.

  • Jefferies has a bullish view on Indian hospitals with a ‘Buy’ rating on Apollo Hospitals, Fortis Health, Max Healthcare Institute and Global Health (Medanta). The brokerage says that rising occupancies are positive and will help revenue growth.

  • Casino company Delta Corp’s net profit rises 20.5% YoY to Rs 84.8 crore in Q3FY23. However, the operating margin falls to 37.4% from 43.35% in Q3FY22 because of high raw material, license fees and employee costs. The company shows up in a screener of stocks with improving net profit for the past two quarters.

  • KRChoksey maintains its ‘Buy’ rating on HDFC Bank with a target price of Rs 1,960. This indicates an upside of 19.5%. The brokerage remains positive on the bank’s prospects due to its strong business momentum, stable margins outlook and increasing mix of the high-yield loan segment. It expects the company’s net profit to grow at a CAGR of 17.8% over FY22-25.

  • Gautam Duggad, Head of Research of Institutional Equities at Motilal Oswal, is 'Overweight' on PSU banks as he expects the sector to perform well during the year. He adds that private banks and NBFCs are doing well in FY23.

  • Adani Transmissions’ distribution rises 4% YoY to 2,165 million units in Q3FY23. E-payment collections improved to 74.87% against 69.9% in Q3FY22.

  • ITC announces plans to acquire 100% stake in Sproutlife Foods over four years. A 47.5% stake worth Rs 225 crore will be acquired in tranches by March 31, 2025, and the remaining will be acquired subject to other conditions agreed to in the binding documents.

  • CLSA has an ‘Outperform’ call on Tata Steel, a ‘Buy’ on Hindalco Industries and a ‘Sell’ on JSW Steel. Meanwhile, it rates Jindal Steel & Power and Vedanta with an ‘Underperform’. The brokerage says that China’s fast reopening is favourable for the metals sector, and domestic demand is strong.

  • Ashish Kacholia buys a 0.8% stake in Best Agrolife in Q3FY23, now holds 2.3% in the company.

  • Sunil Singhania adds Dreamfolks Services to his portfolio in Q3FY23, buys a 1.8% stake in the company.

  • Glenmark Pharmaceuticals signs an agreement with Eris Oaknet Healthcare to divest specific brands and tail brands for Rs 340.48 crore. The brands pertain to the dermatology segment from the Indian and Nepal markets.

  • Rail Vikas Nigam is rising as it emerges as the lowest bidder for the Surat and Ahmedabad Metro Rail Project. The cost of the projects is estimated at Rs 673.8 crore and Rs 384.3 crore respectively. The stock ranks high in the Trendlyne Checklist score.

  • ICICI Prudential Life Insurance’s Q3FY23 net profit falls 29% YoY to Rs 220.6 crore. Its net premium income rises 4.3% YoY but first-year premium falls 10.9%. The value of new business for 9MFY23 rises 23.2% YoY to Rs 1,710 crore. The stock shows up in a screenerfor companies with zero promoter pledges.

Riding High:

Largecap and midcap gainers today include Steel Authority of India (SAIL) Ltd. (90.70, 4.07%), Siemens Ltd. (3,064.65, 4.05%) and Patanjali Foods Ltd. (1,193.05, 4.02%).

Downers:

Largecap and midcap losers today include Star Health and Allied Insurance Company Ltd. (539.15, -4.69%), Bank of India (89.35, -4.34%) and ICICI Lombard General Insurance Company Ltd. (1,200.15, -3.93%).

Movers and Shakers

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

Top high volume gainers on BSE included Polyplex Corporation Ltd. (1,674.70, 12.07%), Just Dial Ltd. (675.10, 5.87%) and Tata Teleservices (Maharashtra) Ltd. (87.40, 4.98%).

Top high volume losers on BSE were Star Health and Allied Insurance Company Ltd. (539.15, -4.69%), ICICI Lombard General Insurance Company Ltd. (1,200.15, -3.93%) and Delta Corp Ltd. (203.30, -3.79%).

Grindwell Norton Ltd. (1,935.00, -1.46%) was trading at 8.2 times of weekly average. CCL Products India Ltd. (517.55, -0.37%) and Eris Lifesciences Ltd. (632.50, -2.96%) were trading with volumes 5.7 and 5.7 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 hit their 52-week lows.

Stocks touching their year highs included - Edelweiss Financial Services Ltd. (74.85, 1.42%), IDFC Ltd. (87.15, 0.52%) and Swan Energy Ltd. (341.50, 4.26%).

Stocks making new 52 weeks lows included - Indus Towers Ltd. (177.05, 0.63%) and Natco Pharma Ltd. (540.65, -0.54%).

10 stocks climbed above their 200 day SMA including Welspun Corp Ltd. (225.80, 4.73%) and Patanjali Foods Ltd. (1,193.05, 4.02%). 8 stocks slipped below their 200 SMA including ICICI Lombard General Insurance Company Ltd. (1,200.15, -3.93%) and Jubilant Ingrevia Ltd. (497.55, -1.19%).

 
Trendlyne Marketwatch
Trendlyne Marketwatch
17 Jan 2023
Market closes higher, Mastek's Q3FY23 net profit declines 18.9% QoQ

Trendlyne Analysis

Nifty 50 rose over 165 points from its day's low and closed above the key 18,000 mark. India’s WPI inflation data released on Monday indicated inflation eased to 4.95% in December, which is well within the range of RBI guidelines of 2% – 6%. Japan’s Nikkei 225 closed in the green as investors look ahead to policy setting by the Bank of Japan on Wednesday. China’s Hang Seng index closed 1% lower than Monday’s close. China reported a 3% GDP growth for 2022. Industrial production increased by 3.6% for 2022. Both the numbers were well above the Reuters poll. The Chinese economy grew at a slower pace in 2022 compared to GDP growth of 8.1% in 2021. All other Major Asian Indices closed flat from Monday’s close. European Indices traded lower than Monday’s levels.

US markets were closed on Monday in observance of Martin Luther King Jr. Day. Brent crude oil futures are down 0.5% after rising over 8.7% last week on the back of improvement in China’s demand outlook. OPEC is due to release its Oil market report today, followed by International Energy Agency’s monthly report.

Nifty Smallcap 100 and Nifty Midcap 100 closed flat from Monday’s level. Nifty FMCG and Nifty Infra closed higher than Monday’s levels. Nifty IT closed in the green, despite the tech-heavy Nasdaq 100 futures trading in the red.

Nifty 50closed at 18,053.30 (158.5, 0.9%), BSE Sensexclosed at 60,655.72 (562.8, 0.9%) while the broader Nifty 500closed at 15,396.15 (90.7, 0.6%)

Market breadth is in the red. Of the 1,948 stocks traded today, 822 were on the uptick, and 1,060 were down.

  • Larsen & Toubrosees a long buildup in its January 25 future series as its open interest rises 9.7% with a put-call ratio of 0.79.

  • Nestle India, Timken Indiaand Hindustan Unileverare trading above their second resistance or R2as market trades higher.

  • Quant Mutual Fund buys a 1.2% stake (10 lakh shares) in Sula Vineyards for Rs 36.2 crore in a bulk deal yesterday

  • Mastekis falling as its Q3FY23 net profit declines 18.9% QoQ to Rs 64.2 crore on account of a high base and higher finance costs. The sale of a corporate asset aided in bumping up the net profit in Q2FY23. The firm’s revenue grows 5.3% QoQ, led by robust growth in its North American segment. The stock shows up in a screenerfor companies with low debt.

  • IIFL Finance is one of thehigh-volume, high-gainer stocks in the market today. The stock ranks high on Trendlyne’s checklist, scoring 69.57%. It also shows up in a screener for companies with improving cash flow and a high durability score.

  • Bank of India is falling as its provisions increase 5.6X YoY to Rs 1,879 crore in Q3FY23. However, net profit rises 12% YoY. Asset quality improves as gross NPA falls 280 bps YoY and net NPA is down 105 bps. The bank shows up in a screener of stocks with increasing revenue for the past three quarters.

  • PSU bank stocks like Bank of India, Punjab & Sind Bank, Bank of Maharashtra and UCO Bank are falling in trade. The broader sectoral index Nifty PSU Bank is also trading in the red.

  • TV18 Broadcast's Q3FY23 net profit drops 79.2% YoY to Rs 41.6 crore, but grows more than 7X QoQ. The profit fall is attributed to an increase in marketing expenses, operations and finance costs. Revenue rises 12.8% YoY. The company features in a screener of stocks with declining quarterly net profit and falling profit margin (YoY).

  • Asian Paints, Havells India, and L&T Technology Services’ share prices fall over the week, ahead of Q3FY23 results in January.

  • CB Ananthakrishnan, Director (Finance) and CFO of Hindustan Aeronautics, says the company's current orderbook is at Rs 84,000 crore. He expects its revenue to grow 8% in FY23 and FY24.

  • Mahindra CIE Automotive rises to an all-time high of Rs 387.7 per share. The stock has been rising for the past five consecutive sessions and is up 14.5% over the past month.

  • JSW Ispat Special Products falls as it reports an increase in net loss to Rs 97.98 crore in Q3FY23 from Rs 27 crore in Q3FY22. The company also reports a 30% fall in crude steel production. It shows up in a screener of stocks with low PE.

  • The Centre reduces the windfall tax on locally produced crude oil to Rs 1,900 per tonne from Rs 2,100 earlier. It also cuts the export tax on diesel to Rs 5 per litre from Rs 7.5. The windfall tax on aviation turbine fuel (ATF) falls to Rs 3.5 per litre from Rs 4.5.

  • ICICI Securities maintains its ‘Buy’ rating on Federal Bank and raises its target price to Rs 170 from Rs 155, implying an upside of 20.5%. The brokerage believes the bank’s broad-based recovery in credit growth, steady margin expansion and improving asset quality will drive growth in the coming quarters. It expects the company’s net profit to grow at a CAGR of 25.4% over FY22-25.

  • India’s merchandise exports have fallen 12.2% YoY to $34.5 billion as on December 2022. Imports stand at $58.2 billion and trade deficit in December widens to $23.8 billion.

  • Power stocks like Adani Green Energy, NHPC and NTPC are rising in trade. All constituents of the broader BSE Power index are trading in the green.

  • Citi maintains ‘Buy’ on Federal Bank but raises target price to Rs 165 after its Q3FY23 results. The brokerage says pre-provisioning operating profit rises 40% YoY because of growth in net interest income. However, net interest margin is less likely to fall until the rate hike cycle continues.

  • Dolly Khanna trims her stake in Polyplex Corp to below 1% in Q3FY23 from 1.2% in Q2FY23.

  • Ashish Kacholia sells a 1.2% stake in D-Link (India) in Q3FY23, now holds 2.1% in the company.

  • Central Bank of India, Persistent Systems and Hindustan Zinc see a positive shift in their share prices ahead of Q3FY23 results in January.

  • Siemens signs a contract to manufacture 9,000 HP locomotives with the Ministry of Railways. It will deliver 1,200 electric locomotives at a project cost of Rs 26,000 crore.

  • Angel One’s Q3FY23 net profit rises 38.6% YoY to Rs 227.9 crore and its revenue increases by 20.3% YoY. The company’s client base expands by 60.7% YoY to 1.25 crore and its average daily turnover jumps by 108.4% YoY. The stock shows up in a screener for companies with high TTM EPS growth.

Riding High:

Largecap and midcap gainers today include Macrotech Developers Ltd. (1,086.30, 5.81%), NHPC Ltd. (40.95, 4.20%) and Adani Green Energy Ltd. (2,166.15, 3.65%).

Downers:

Largecap and midcap losers today include One97 Communications Ltd. (526.10, -4.96%), FSN E-Commerce Ventures Ltd. (133.30, -4.96%) and Zomato Ltd. (50.15, -4.84%).

Volume Rockets

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

Top high volume gainers on BSE included IIFL Finance Ltd. (514.75, 8.96%), Minda Corporation Ltd. (241.10, 6.52%) and Macrotech Developers Ltd. (1,086.30, 5.81%).

Top high volume losers on BSE were Bank of India (93.40, -4.55%), Indus Towers Ltd. (175.95, -3.32%) and Can Fin Homes Ltd. (526.05, -3.10%).

V-Mart Retail Ltd. (2,864.20, 1.95%) was trading at 18.7 times of weekly average. Sundram Fasteners Ltd. (962.00, -0.59%) and TTK Prestige Ltd. (790.00, 0.20%) were trading with volumes 11.0 and 7.9 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

3 stocks made 52-week highs, while 8 stocks tanked below their 52-week lows.

Stocks touching their year highs included - Jindal Stainless (Hisar) Ltd. (460.50, -0.22%), Mahindra CIE Automotive Ltd. (378.15, -0.28%) and Larsen & Toubro Ltd. (2,213.10, 3.55%).

Stocks making new 52 weeks lows included - Indus Towers Ltd. (175.95, -3.32%) and Natco Pharma Ltd. (543.60, -1.15%).

9 stocks climbed above their 200 day SMA including Macrotech Developers Ltd. (1,086.30, 5.81%) and Adani Green Energy Ltd. (2,166.15, 3.65%). 17 stocks slipped below their 200 SMA including Can Fin Homes Ltd. (526.05, -3.10%) and City Union Bank Ltd. (160.45, -2.96%).

 
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The Baseline
17 Jan 2023
Five analyst picks this week
By Suhas Reddy
  1. Gujarat Gas: Motilal Oswal maintains a ‘Buy’ call on this utilities company with a target price of Rs 679, indicating an upside of 51.7%. According to analysts Swarnendu Bhushan and Rohit Thorat, the Russia-Ukraine conflict led to an increase in liquefied natural gas (LNG) prices, which in turn harmed Gujarat Gas. Higher prices forced consumers to switch to cheaper alternatives such as propane and liquefied petroleum gas (LPG). The analysts believe that “the storm seems to be running out of steam with spot LNG prices declining 48% from their peak.” 

After analysing historic prices of over eight years, Bhushan and Thorat revealed that  LNG, on average, has been cheaper than propane and LPG by 15% and 19% respectively, when the entire demand is met through long-term contracts. They said, “Barring the current flux in gas markets, LNG should continue to remain cheaper than alternate fuels by a similar magnitude, except for 3-4 months in a year.”

They remain optimistic as Gujarat Gas can raise volumes through several avenues, in addition to the growth from the industrial and compressed natural gas pick-up in the existing areas.

  1. Bank of Baroda: Prabhudas Lilladher reiterates its ‘Buy’ call on this bank with a target price of Rs 220. This indicates an upside of 18.3%. Analysts Gaurav Jani and Palak Shah say that domestic corporate credit growth has touched an 8-year high of 13% YoY and is reviving. According to them, Bank of Baroda would be a key beneficiary as its corporate loan share is 40% and market share in overall advances is sizeable at 6.6% post-merger. The analysts also believe that the bank could expand net interest margins for half a year, while private bank margins peak in Q3FY22, due to a higher share of MCLR (marginal cost of funds-based lending rate) linked loans.

Jani and Shah believe that the bank’s balance sheet is stronger than ever with net non-performing assets to equity ratio at a multi-quarter low of 10.5%, which gives it leeway to grow. Talking about the sector, the analysts said, “With sustained loan growth and benign asset quality environment, there could be further earnings upgrades across PSU banks.”

  1. Macrotech Developers: ICICI Securities maintains its ‘Buy’ rating on this realty company with a target price of Rs 1,304. This indicates an upside of 27.8%. Adhidev Chattopadhyay remains positive on the realty firm as its Q3 sales bookings have outperformed the brokerage’s estimates. The analyst believes the company will exceed its FY23 sales bookings guidance of Rs 11,500 crore, given that it has “already achieved 9MFY23 sales bookings of Rs 90.4bn (79% of FY23 guidance)”. He adds that the robust sales are  “driven by a combination of monetization of ready/completed inventory and new launches”.

Chattopadhyay believes that the company’s robust launch pipeline and expansion into new markets like Pune and Bengaluru provide healthy growth visibility in the medium term. The analyst is also upbeat on the sequential reduction in net debt on the back of higher collections and falling interest costs. He expects the firm’s net profit to grow at a CAGR of 36.3% over FY22-24. 

  1. VIP Industries: Axis Direct upgrades its rating on this luggage and travel accessories maker to ‘Buy’ from ‘Hold’ with a target price of Rs 750, indicating an upside of 7.2%. Analysts at the brokerage expect demand to rise on the back of the upcoming wedding season and robust pick-up in travel & tourism. They also see the company gaining market share as they expect demand for premium products to rise. Along with the uptick in travel, “increasing number of International departures of students to foreign universities shall help boost demand for Hard Luggage”, they say. 

The analysts believe the company’s focus on adding depth and diversifying its product portfolio will make its products more appealing to a wider audience. They are hopeful that this will boost market share gains and sales. Overall, the analysts anticipate VIP Industries to capitalise on the improvement in demand, given its diverse product offerings. They expect the firm’s revenue to grow at a CAGR of 40.9% over FY22-24.  

  1. Tata Consultancy Services (TCS): ICICI Direct maintains its ‘Buy’ rating on this IT consulting & software company with a target price of Rs 3,780. This indicates an upside of 12.7%. In Q3FY23, the IT giant’s net profit has risen by 4% QoQ to Rs 10,846 crore and revenue by 5.3% QoQ. 

Analysts Sameer Pardikar and Sujay Chavan believe the company’s EBIT margin rising by 50 bps QoQ is a key positive. They expect “margins to improve from FY23 onwards due to utilisation improvement and moderation of sub-contractor costs''. They see margins growing by 110 bps over FY23-25, and expect cash flow to remain robust in the coming quarters.

Pardikar and Chavan view the company’s new organisational structure, which is aimed at improving clients’ stickiness, as likely to enhance market share gains. The analysts say that increased outsourcing in Europe, vendor consolidation, and a healthy deal pipeline will drive growth. They expect TCS’ net profit to grow at a CAGR of 11.5% over FY22-25. 

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

(You can find all analyst picks here)

 
Trendlyne Marketwatch
Trendlyne Marketwatch
16 Jan 2023
Market closes lower, WPI inflation falls to a 22-month low to 4.95%

Trendlyne Analysis

Indian indices closed in the red, with the volatility index, India VIX, rising sharply. India’s Wholesale Price Index (WPI) inflation declines to a 22-month low of 4.95% in December 2022, compared to 5.85% in November. European indices traded flat to higher than Friday’s levels. Other major Asian indices closed in the green, barring Japan’s Nikkei 225 index, as investors look ahead to policy setting by the Bank of Japan on Wednesday this week.

US indices closed in the green on Friday after dipping into losses and gains on a volatile day of trade. Bank stocks led the US indices to post gains on Friday. The S&P 500 rose 0.4% while the tech-heavy Nasdaq 100 index closed 0.7% higher. US markets will be closed today in observance of Martin Luther King Jr. Day. Brent crude oil futures traded lower after rising over 8.7% last week amid cooling inflation prints globally and the reopening of China, which led to a rise in crude oil demand.

Nifty Smallcap 100 closed flat, despite the benchmark index closing in the red. Nifty Metal and Nifty Auto closed lower than Friday’s levels. Nifty IT closed in the green, taking cues from the tech-heavy Nasdaq 100 index, which closed 0.7% higher on Friday.

Nifty 50closed at 17,894.85 (-61.8, -0.3%), BSE Sensexclosed at 60,092.97 (-168.2, -0.3%) while the broader Nifty 500closed at 15,305.45 (-40.7, -0.3%)

Market breadth is in the red. Of the 1,976 stocks traded today, 764 showed gains, and 1,138 showed losses.

  • Relative strength index(RSI) indicates that stocks like Max Financial Services, Mahindra CIE Automotive, CG Power and Industrial Solutionsand Edelweiss Financial Servicesare in the overbought zone.

  • GPT Infraprojects is rising as the company bags an order worth Rs 216 crore from Maharashtra Rail Infrastructure Development Corp for the proposed extension of Ghatkopar cable-stayed road overbridge.

  • PNC Infratechtouches its 52-week high of Rs 335 today. The stock ranks high on Trendlyne’s checklist, scoring 56.5%. It also shows up in a screenerfor companies with improving book value per share over the past two years.

  • Federal Bank is rising as its Q3FY23 net profit grows 54% YoY to Rs 803.1 crore and net interest income increases 27% YoY. The bank’s asset quality improves as its gross NPA and net NPA fall 63 bps and 32 bps YoY respectively. The bank shows up in a screener of stocks with growth in quarterly net profit and increasing profit margin (YoY).

  • Larsen & Toubro’s arm L&T Construction secures a repeat order worth Rs 1,000-2,500 crore to construct two towers with commercial office space in Hyderabad. The company shows up in a screener for stocks with high consistent returns over the past five years.

  • Reports suggest that around 47.7 lakh shares (0.23% equity) of Federal Bank, amounting to Rs 66.8 crore, change hands.

  • Maruti Suzuki India is falling as it hikes its prices by a weighted average of 1.1% across models. The indicative figure is calculated using ex-showroom prices of the models in Delhi. The price change will take effect from today. The company features in a screener of stocks with return on capital employed (RoCE) falling over the past two years.

  • Sula Vineyards is rising as its own brands sales rise 13% YoY to Rs 187.2 crore in Q3FY23 on the back of robust volume growth and higher realisations. The company’s wine tourism business also grows 13% YoY. The company shows up in a screener for stocks near their 52-week highs.

  • India’s Wholesale Price Index (WPI) inflation declines to a 22-month low of 4.95% in December 2022, compared to 5.85% in November. This decline is caused by a fall in prices of food articles, mineral oils, crude petroleum and natural gas, among others.

  • US FDA sends a warning letter to Sun Pharmaceutical Industries for manufacturing lapses like failure to follow appropriate written procedures designed to prevent microbiological contamination of drug products, according to reports.

  • Avenue Supermarts is falling even as its Q3FY23 revenue grows 25.5% YoY to Rs 11,569 crore. The fall is because of the company missing estimates. Rise in employee benefits and other expenses cause the EBITDA margin to fall 110 bps YoY to 8.3%. The company features in a screener of stocks with declining net cash flow.

  • Jefferies maintains its ‘Buy’ rating on Varun Beverages with a target price of Rs 1,540. The brokerage expects the company to lead the industry in terms of revenue growth and its RoCE to improve to 30%.

  • IDBI Capital upgrades its rating on Infosys to ‘Buy’ from ‘Hold’ with a target price of Rs 1,715. This implies an upside of 20%. The brokerage believes cost efficiencies and large deal wins will drive growth and improvement in margins. It expects the company’s revenue to grow at a CAGR of 13.9% over FY22-25.

  • PSU Bank stocks like UCO Bank, Indian Overseas Bank, Punjab & Sind Bank and Central Bank of Indiaare rising in trade. The broader sectoral index Nifty PSU Bank is also trading in the green.

  • Lupin is falling as the US FDA issues form-483 with two observations after inspecting the company's manufacturing facility in New Jersey, USA, from January 2 to 13.

  • Whirlpool of India's Managing Director Vishal Bhola resigns to pursue other interests, effective from April 3. The board appoints Narasimhan Eswar as Additional Director and Managing Director with effect from April 4 for a period of five years, subject to necessary approvals.

  • Indian rupee rises to 81.24 against the US dollar in early trade today from Friday's close of 81.33.

  • Dolly Khanna buys a 0.1% stake in National Oxygen in Q3FY23, now holds a 1.2% stake in the company.

  • Porinju Veliyath's wife, Litty Thomas, buys a 0.72% stake in Kovilpatti Lakshmi Roller Flour Mills in a bulk deal on Friday.

  • HG Infra Engineering is rising as it receives a letter of acceptance from Delhi Metro Rail Corp for the construction of elevated viaducts and stations. The cost of the project is Rs 398.6 crore.

  • Wipro’s Q3FY23 net profit grows 14.8% QoQ to Rs 3,052.9 crore, with revenue rising 3.1% QoQ. Attrition falls to 24.3% from 27% in Q2FY23. The company declares an interim dividend of Re 1 per equity share with January 25 as the record date. It shows up in a screener of stocks with increasing revenue for the past four quarters.

  • HDFC Bank’s net profit increases 18.5% YoY to Rs 12,259.4 crore, with net interest income rising 24.6% YoY in Q3FY23. The bank's asset quality also improves as GNPA and NNPA ratios fall to 1.23% and 0.33% respectively. Provisions fall 6.3% YoY in Q3. The bank shows up in a screener of stocks nearing 52-week high.

Riding High:

Largecap and midcap gainers today include Adani Green Energy Ltd. (2,089.80, 9.09%), Indian Overseas Bank (32.20, 7.15%) and Varun Beverages Ltd. (1,207.35, 6.30%).

Downers:

Largecap and midcap losers today include FSN E-Commerce Ventures Ltd. (140.25, -4.98%), Avenue Supermarts Ltd. (3,678.35, -4.80%) and Astral Ltd. (1,975.75, -3.50%).

Movers and Shakers

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

Top high volume gainers on BSE included Just Dial Ltd. (644.30, 10.00%), Adani Green Energy Ltd. (2,089.80, 9.09%) and Easy Trip Planners Ltd. (56.05, 8.83%).

Top high volume losers on BSE were Avenue Supermarts Ltd. (3,678.35, -4.80%), HDFC Asset Management Company Ltd. (2,111.95, -1.89%) and Sobha Ltd. (587.65, -1.07%).

HEG Ltd. (1,098.50, 4.57%) was trading at 10.9 times of weekly average. Cholamandalam Financial Holdings Ltd. (590.00, -0.80%) and Aptus Value Housing Finance India Ltd. (300.95, 1.14%) were trading with volumes 8.1 and 6.3 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

9 stocks hit their 52-week highs, while 4 stocks were underachievers and hit their 52-week lows.

Stocks touching their year highs included - Edelweiss Financial Services Ltd. (73.65, 0.82%), Federal Bank Ltd. (140.30, 1.34%) and IDFC Ltd. (87.95, 3.05%).

Stocks making new 52 weeks lows included - Vodafone Idea Ltd. (7.20, -1.37%) and Laurus Labs Ltd. (354.55, -0.74%).

7 stocks climbed above their 200 day SMA including Just Dial Ltd. (644.30, 10.00%) and HEG Ltd. (1,098.50, 4.57%). 16 stocks slipped below their 200 SMA including Inox Leisure Ltd. (495.10, -4.12%) and Astral Ltd. (1,975.75, -3.50%).

 
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The Baseline
13 Jan 2023
Five Interesting Stocks Today - Q3 Preview
  1. Tata Motors: This auto stock has outperformed its sector by 6.1% in the past week and rose 7%, according to Trendlyne’s technicals. The stock reaction comes after the company released its global wholesales number on January 9. Total global wholesales grew 13% YoY to 3.2 lakh units in Q3FY23. Its subsidiary, Jaguar Land Rover (JLR), has also seen its wholesales increase 15% YoY and 5.2% QoQ to 79,591 units. The company’s domestic wholesales grew 17.7% YoY to 2.2 lakh units in Q3.

Although JLR’s wholesales volumes have grown in North America and UK markets, its China volumes were impacted by COVID spread. Its order book stands at 2.15 lakh, led by the new order for the Range Rover series. Improvement in chip supplies has positively pushed JLR’s wholesales in Q3. The company says JLR’s free cash flow (FCF) will be positive and is likely to be over 400 million euros. The stock reacted positively to this news and rose nearly 6% in trade on Tuesday.

Mitul Shah from Reliance Securities says that despite supply constraints and inflation, the company is likely to report net profit growth in Q3. However, Reliance Securities has not changed its target price and continues to hold its ‘Buy’ rating on the stock. Other brokerages like CLSA have upgraded their recommendation to ‘Buy’, while JP Morgan maintains ‘Neutral’. JP Morgan says that JLR needs to achieve the FCF guidance even in Q4FY23 to meet its full-year guidance since the FCF has been negative until H1FY23.

Overall analysts expect the auto sector to revive from one of its worst slowdowns by FY23-24. Jefferies has a positive stance on the auto sector and expects 12-18% volume CAGR growth over FY23-25E for passenger vehicles and two-wheelers. Tata Motors shows up in a screener of stocks showing positive shifts in share price and rising delivery volumes ahead of its Q3FY23 results on January 25.

  1. Titan: This jewelry and watchmaker’s stock has fallen nearly 4% in the past four days till Thursday in reaction to the company’s Q3FY23 business update. Titan’s share price fell despite the company reporting a 12% YoY growth in combined sales across its standalone businesses. Q3 is generally a strong quarter for Titan due to festivals spread across the period. The company still managed to post double-digit growth on a high base but investors weren’t excited as the share price fell on Monday and Tuesday. One reason could be higher growth expectations. This is reflected in the company’s high TTM price-to-earnings ratio of 70. The TTM PE ratio is still below its historical averages, putting the stock in the PE Buy zone.

The jewelry segment is Titan’s major revenue contributor. The company derived over 86% of its total revenues from this segment in Q2FY23. In Q3, jewelry segment sales rose 11% YoY. Healthy new buyer growth in the festive period and higher-value purchases in the studded category drove sales. While its watch sales (10% of total revenue) rose 14%, eyecare product sales rose 10%.

Post the Q3FY23 business update release, brokerages like ICICI Securities and Prabhudas Lilladher maintain their ‘Add’ rating on Titan. However, ICICI Sec has reduced the target price by 5% to Rs 2,800, citing a possible demand slowdown due to macroeconomic factors. As a result, Titan features in a screener of stocks with recent broker downgrades in recommendation or target price.

  1. Godrej Consumer Products: Since announcing its quarterly update on January 5, this FMCG company has risen nearly 3% till Thursday and outperformed the Nifty FMCG by 2.4%. As a result of this uptrend in share price, the stock is above its short, medium and long-term moving averages.

The management expects the company to deliver double-digit sales growth and single-digit volume growth amid softness in domestic demand. This comes after three consecutive quarters of YoY decline in volumes. The management indicated sales growth to be broad-based across segments, led by double-digit growth in the home care and personal care segments. Also, the household insecticides segment is expected to improve, according to reports. This is likely to aid performance as the segment has been weighing down the company’s topline performance for a few quarters.

At a consolidated level, the firm anticipates double-digit growth in rupee terms with volumes being more or less flat. With palm oil prices declining, the company expects gross margin recovery and healthy sequential growth in net profit. Trendlyne’s forecaster estimates its net profit to rise by 27.5% QoQ. Godrej Consumer’s Indonesia business is finally showing signs of recovery as its sales decline has come down to single digits from double digits. The firm’s Africa, US and Middle East businesses are expected to maintain their robust sales growth momentum in Q3FY23.

However, the management acknowledges that the demand environment has not yet completely recovered, as rural demand weakness still looms. The company’s ability to sustain this improvement in sales and volumes will be key for medium and long-term growth.

  1. Sobha: This realty company has been on an uptrend after it reported a strong business update on January 6, 2023. The company’s share price has risen over 3% in a weak market as it reported its highest-ever sales value of Rs 1,425 crore, a 36% YoY growth. Its average price realisation is up 21.9% YoY to Rs 9,650 per square foot. The company has also outperformed the Nifty Realty index by 7.1% in the past week.

While Bangalore continues to contribute a significant share (60%) of its real estate sales, projects from other cities make up 40% of the total sales volume during the quarter. Gurugram clocked its highest-ever quarterly sale, backed by the launch of new towers. The management says, “Requirement for larger homes has been the consistent theme in the past couple of years. Adoption of our home designs to cater to this demand across cities has helped us in improved sales volume and higher realizations.”

Besides, the company’s cash flows have been strong in Q3FY23 and led to a reduction in net debt. As a result, it features in a screener of companies with improving cash flow from operation for the past two years.

Post this business update, ICICI Securities maintains its ‘Buy’ rating on the stock with a target price of Rs 808. The brokerage believes that Sobha is well on track to achieve its FY23 guidance with the 9MFY23 sales bookings up 35% YoY.

  1. One97 Communications (Paytm): This internet software & services company rose 2.3% on Monday in reaction to its Q3FY23 business update. Paytm’s loan disbursements have grown 357% YoY to Rs 9,958 crore in Q3FY23. But investors’ enthusiasm quickly waned on Thursday as the stock plunged 6.2% on the news of Alibaba selling 2 crore shares (or 3.1% stake) in the company, according to reports.

In its business update, Paytm reported a  32% YoY rise in monthly transacting users (MTUs) and 190% YoY growth in devices deployed. These two factors aided the jump in gross merchandise value (GMV) by 38% YoY to Rs 3.5 lakh crore. The company says that, over the past few quarters, its focus has been on payment volumes that generate profitability, either through net payments margin or from direct upsell potential.

According to reports, Morgan Stanley, on Thursday, stated that One97 Communications will be a major beneficiary of the government’s unified payments interface (UPI) incentive scheme. The cabinet has approved an incentive scheme of Rs 2,600 crore for the promotion of RuPay Debit Cards and low-value BHIM-UPI transactions. The brokerage estimates that the company will receive 5-7% of the incentive.

Paytm has also signed a sponsorship deal with Zee Entertainment Enterprises for the DP World International League T20 on Thursday, according to reports. The company features in a screener of stocks which are efficient in managing their assets.

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

 
Trendlyne Marketwatch
Trendlyne Marketwatch
13 Jan 2023
Market closes higher, Prabhudas Lilladher maintains ‘Buy’ on Bank of Baroda

Trendlyne Analysis

Nifty 50 recovered over 180 points from the day's low and closed in the green on a volatile day of trade. CPI data released post-market hours on Thursday indicated inflation in India fell to a year low of 5.72%. The Index of Industrial Production or IIP rose 7.1% in November after contracting 4.2% in October. European Indices traded in the green as UK's GDP data showed a better-than-expected growth of 0.1% in November from October.

Major Asian Indices closed in the green, except for Japan’s Nikkei, which closed 1.25% lower than Thursday’s level. The S&P 500 rose 0.34% while the Dow Jones closed 0.64% higher at the closing bell on Thursday. US CPI inflation numbers released on Thursday indicated CPI inflation fell 6.5% YoY in December from 7.1% seen in November 2022. Core inflation, which strips out food and energy slowed in line with forecasts amid stubborn service inflation. Crude oil prices traded lower but are set to close the week 6% higher. The gains were in line with the improvement in China’s demand outlook and less aggressive interest rate hikes in the US.

Nifty Smallcap 100 closed in the green and the Nifty Midcap 100 closed flat. Nifty Metal and Nifty PSU Bank closed higher than Thursday’s levels. Nifty IT closed in the green taking cues from Nasdaq 100 which closed higher on Thursday.

Nifty 50 closed at 17,956.60 (98.4, 0.6%), BSE Sensexclosed at 60,261.18 (303.2, 0.5%) while the broader Nifty 500closed at 15,346.10 (66.5, 0.4%)

Market breadth is in the green. Of the 1,950 stocks traded today, 1,057 showed gains, and 823 showed losses.

  • Tata Consultancy ServicesbeatsInfosysin QoQ revenue growth, quarterly price change, annual RoE and broker average rating. But lags in YoY revenue and profit growth, QoQ profit growth, PE ratio, MF holdings and average broker target upside percentage.

  • Bloomberg’s consensus estimates suggest that HDFC Bank’s net profit might grow 14% YoY and net interest income by 16% YoY in Q3FY23. Nomura expects its net interest margin to increase QoQ in Q3 as lending rates hike. The bank shows up in a screener with decreasing provisions in the last quarter.

  • Anish Shah, Managing Director and CEO of Mahindra & Mahindra (M&M), says that the company is on track to achieve an RoA of 18% soon. He adds that M&M will drive growth across all businesses.

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

  • Pankaj Tibrewal, Senior Equity Fund Manager at Kotak Mutual Fund, expects Indian markets to give muted returns in 2023. He also expects large-cap companies to perform better during the year.

  • Mahindra CIE Automotive touches an all-time high of Rs 386.7 in a volatile market. The stock is trading below its historic levels and is in the PE Buy Zone. It shows up in a screener of stocks gaining more than 20% in one month.

  • Prabhudas Lilladher maintains its ‘Buy’ rating on Bank of Baroda with a target price of Rs 220, indicating an upside of 20%. The brokerage believes the bank will benefit from the rising demand for corporate debt, given its sizable market share and improving asset quality. The brokerage expects the company’s net profit to grow at a CAGR of 28.9% over FY22-25.

  • Larsen & Toubro signs an MoU with Norway-based H2Carrier to develop floating green ammonia projects for industrial-scale applications. H2Carrier plans to build the P2XFloater hull at yards in Asia, and L&T will design and fabricate the topside process and utility modules to produce green hydrogen & green ammonia, including electrolysers, nitrogen generation plant, and ammonia synthesis unit.

  • Kolte-Patil Developers is rising as its pre-sales value grows 28% YoY to Rs 716 crore in Q3FY23 and collections by 3% YoY to Rs 435 crore. Rahul Talele, Chief Executive Officer of the company, says, "Our performance in Q3 was marked by a significant contribution from new launches and continued momentum of customer traction in our existing, sustenance phase projects."

  • Foreign institutional investors pull out Rs 7,849 crore from the equity market over the past week, according to Trendlyne's FII dashboard. However, index options receive the highest inflow of Rs 27,857 crore from foreign investors.

  • Metal stocks like Jindal Stainless, Tata Steel, MOIL, Vedanta and National Aluminium Co are rising in trade. All constituents of the broader sectoral index Nifty Metal are also trading in the green.

  • India’s Index of Industrial Production (IIP) grows 7.1% in November 2022, after a contraction of 4.2% in October, and manufacturing sector output increases 6.1%.

  • Asian Paints incorporates a subsidiary, Asian Paints (Polymers), to set up a manufacturing facility for vinyl acetate-ethylene emulsion (VAE) and vinyl acetate monomer (VAM) in India. The company authorises a share capital of Rs 100 crore for the subsidiary.

  • Rail Vikas Nigam rises as it bags an order worth Rs 38.9 crore. The order pertains to the provisioning of automatic block signalling in the Taduku-Renigunta section and replacing interlocking systems at certain railway stations in the Chennai Division.

  • India’s CPI inflation eases to 5.72% in December 2022, compared to 5.88% in November. This is because of a decline in food prices on the back of easing food inflation (4.19%).

  • Ashish Kacholia sells a 1.3% stake in Hindware Home Innovation in Q3FY23 and now holds 1.3% in the company. Sunil Singhania cuts a 0.1% stake in the company and takes it to 4.9%.

  • Radhakishan Damani sells a 1.6% stake in VST Industries in Q3FY23, now holds a 30.7% in the company.

  • V-Guard Industries rises as it completes the acquisition of Sunflame Enterprises. It buys 100% stake in the company for Rs 680.3 crore. The stock gains 42% from its 52-week low.

  • HCL Technologies’ Q3FY23 net profit rises 17.4% QoQ to Rs 4,096 crore and revenue increases by 8.2% QoQ. EBIT margin expands by 170 bps QoQ to 19.6% as employee costs and sub-contractor costs as a percentage of revenue fall. The stock shows up in a screener for companies with net profits rising sequentially for the past two quarters.

  • Larsen & Toubro’s (L&T) subsidiary L&T Technology Services (LTTS) announces the agreement to acquire L&T’s Smart World and Communication Business dealing with projects of smart cities, utilities and digital infrastructure. The cost of acquisition is Rs 800 crore and the transaction is likely to be completed by March.

  • Infosys’ Q3FY23 net profit rises 9.4% QoQ to Rs 6,586 crore as attrition rates and sub-contractor costs fall. Revenue grows 4.9% QoQ, driven by broad-based growth across all business verticals. However, its EBIT margin remains flat QoQ at 21.5%. The stock shows up in a screener for companies with revenue increasing sequentially for the past eight quarters.

Riding High:

Largecap and midcap gainers today include CG Power and Industrial Solutions Ltd. (308.55, 4.56%), Cholamandalam Investment & Finance Company Ltd. (711.70, 3.81%) and Indian Railway Finance Corporation Ltd. (33.95, 3.66%).

Downers:

Largecap and midcap losers today include L&T Technology Services Ltd. (3,448.75, -5.33%), Varun Beverages Ltd. (1,135.75, -4.33%) and Gujarat Gas Ltd. (450.30, -3.53%).

Volume Rockets

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

Top high volume gainers on BSE included Rallis India Ltd. (257.65, 6.69%), Multi Commodity Exchange of India Ltd. (1,604.70, 6.37%) and Mahindra CIE Automotive Ltd. (377.25, 5.72%).

Top high volume losers on BSE were L&T Technology Services Ltd. (3,448.75, -5.33%), Gujarat Gas Ltd. (450.30, -3.53%) and Bata India Ltd. (1,578.90, -3.53%).

ITI Ltd. (109.35, 5.50%) was trading at 53.9 times of weekly average. Sundaram Clayton Ltd. (4,987.80, -0.78%) and KIOCL Ltd. (221.60, 4.80%) were trading with volumes 14.3 and 8.3 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

5 stocks overperformed with 52-week highs, while 6 stocks tanked below their 52-week lows.

Stocks touching their year highs included - Jindal Steel & Power Ltd. (610.00, 1.22%), PNB Housing Finance Ltd. (580.25, -1.29%) and Mahindra CIE Automotive Ltd. (377.25, 5.72%).

Stocks making new 52 weeks lows included - Atul Ltd. (7,698.90, 0.31%) and Bata India Ltd. (1,578.90, -3.53%).

10 stocks climbed above their 200 day SMA including ITI Ltd. (109.35, 5.50%) and Eicher Motors Ltd. (3,162.05, 1.89%). 6 stocks slipped below their 200 SMA including Titan Company Ltd. (2,417.20, -1.20%) and Hitachi Energy India Ltd. (3,269.05, -1.08%).