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

Trendlyne Analysis

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Riding High:

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

Downers:

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

Movers and Shakers

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

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

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

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

BSE 500: highs, lows and moving averages

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

(You can find all analyst picks here)

 
Trendlyne Marketwatch
Trendlyne Marketwatch
21 Feb 2023
Market closes flat, BoB Capital Markets maintains ‘Hold’ rating on TVS Motor Co

Trendlyne Analysis

Nifty 50closed at 17,826.70 (-17.9, -0.1%), BSE Sensexclosed at 60,672.72 (-18.8, 0.0%) while the broader Nifty 500 closed at 14,913.95 (-24.7, -0.2%). Of the 1,943 stocks traded today, 735 were on the uptrend, and 1,138 went down.

Indian indices closed flat after switching between losses and gains throughout the day. The Indian volatility index, Nifty VIX, rose sharply by 4.7%. Foreign portfolio investors' (FPIs) outflow in Indian equities moderated in the first half of February to Rs 48.06 billion from Rs 288.5 billion in January. FPI outflow had hit a seven-month high in January due to uncertainties in the market caused by the sell-off in Adani Group companies.

Nifty Smallcap 100 and Nifty Midcap 100 closed in the red, despite the benchmark index closing flat. Among sectoral indices, Nifty PSU Bank, Nifty IT and Nifty Realty were the top losers. Nifty FMCG and Nifty Energy managed to close higher than Monday’s level. NMDC Steel continued to rise a day after it was listed on the exchanges.

Most major Asian indices closed lower, in line with US indices futures. European indices traded in the red, led by Credit Suisse, which fell over 5% and hit its record low. Investors also assessed lower-than-expected manufacturing activity from France and Germany, which are Eurozone's two largest economies.

  • HCL Technologies sees a long unwinding in its February 23 future series as its open interest falls 5.6% with a put-call ratio of 0.29.

  • Lupin launches lurasidone hydrochloride tablets to market a generic equivalent of Latuda tablets of Sunovion Pharmaceuticals. Lurasidone hydrochloride tablets' estimated annual sales in the US in 2022 is $4.2 billion.

  • NMDC Steel continues to rise a day after it was listed on the bourses. It hit the upper circuit after demerging with NMDC on Monday. The stock ranks Medium on the Trendlyne checklist score.

  • Bharti Airtel trades in the green as it rolls out higher recharge plans across two new circles. This leads to tariff hikes in 19 out of 22 circles for the company. According to reports, Morgan Stanley maintains an ‘overweight’ rating on the stock, while Goldman Sachs advises on buying the stock at a dip.

  • Joyalukkas has withdrawn its Rs 2,300 crore IPO for reasons unknown. The IPO funds were to be used for the repayment of debts, according to the draft prospectus released in March 2022.

  • Credit rating agency Fitch Ratings believes that the strong performance of Indian banks may last longer than expected on the back of improvement in asset quality and profitability.

  • Gujarat Ambuja Exports is rising as it signs an MoU with the Gujarat government to set up a corn milling plant with a capacity of 550 TPD at Himmatnagar. The company plans to increase the plant's capacity to 6,000 TPD by 2025. The cost of the project is estimated at Rs 333 crore.

  • BoB Capital Markets maintains its ‘Hold’ rating on TVS Motor Co but raises target price to Rs 1,252. This implies an upside of 12.1%. The brokerage expects the firm’s margins to remain stable and the industry outperformance to continue on the back of new launches but sees a limited upside.

  • Capacit'e Infraprojects wins a contract worth Rs 181.4 crore from Indian Oil Corp for the construction of residential towers at Indian Oil Nagar, Andheri (West), Mumbai.

  • PSU banks like Bank of India, UCO Bank, Canara Bank, Bank of Baroda and Union Bank of India are falling in trade. All constituents of the broader sectoral index Nifty PSU Bank are also trading in the red.

  • Rajnish Kapur, Chief Operating Officer (Grey Cement) of JK Cement, says the company’s volume growth will be around 14-15% in FY24. He expects EBITDA per tonne to touch Rs 1,000 in H1FY24.

  • Siemens rises to touch its new 52-week high today. According to reports, UBS has initiated a ‘Buy’ rating on the company with a target price of Rs 3,900. The brokerage believes the company is in the midst of a robust growth cycle and order inflow may see double-digit growth.

  • Nifty IT,Nifty Media, Nifty PSU Bank and Nifty Realty trade lower in a rising market.

  • Spicejet says it will consider issuing equity shares on a preferential basis in a board meeting on Friday and discuss the conversion of outstanding liabilities into equity shares.

  • Uday Kotak, CEO of Kotak Mahindra Bank, says further interest rate hikes could impact asset classes and growth. He adds that India needs to move into a current account surplus mode for better growth.

  • Asian Paints’ arm Asian Paints (Polymers) enters into an MoU with the government of Gujarat to set up a manufacturing facility for vinyl acetate ethylene emulsion and vinyl acetate monomer at Dahej, Gujarat. The stock shows up in a screener for companies with decreasing promoter pledges.

  • Triveni Turbine touches an all-time high of Rs 310.5 and shows up in a screener of stocks with increasing revenue for the past eight quarters. Reports suggest that the management is planning to increase manufacturing capacity to 350 turbines annually from the current 225 turbines, as demand is likely to grow in the coming quarters.

  • Domestic airlines have flown more than 1.2 crore passengers in January, according to the data released by DGCA. The number continues to be below pre-covid levels. Indigo, Vistara and SpiceJet lose market share MoM in January.

  • Gujarat Gas, Linde India and The New India Assurance Co outperform the Nifty 50 index over the week post their Q3FY23 results.

  • BEML rises as it inks a memorandum of understanding with Delhi Metro Rail Corp for the construction of the Bahrain metro rail project phase-1.

  • United Breweries trades lower after the Supreme Court stays a National Company Law Appellate Tribunal (NCLAT) order. The company is now obligated to pay 10% of the additional penalty amount above the subsisting 10% deposit.

  • G R Infraprojects emerges as the lowest bidder for two National Highways Logistics Management projects to develop, operate and maintain a ropeway in Uttarakhand. The total estimated cost of both projects is Rs 3,613 crore.

Riding High:

Largecap and midcap gainers today include Adani Power Ltd. (171.00, 4.97%), NTPC Ltd. (173.25, 3.19%) and Tube Investments of India Ltd. (2,547.75, 3.09%).

Downers:

Largecap and midcap losers today include Bank of India (70.90, -6.22%), Adani Total Gas Ltd. (876.80, -5.00%) and Adani Green Energy Ltd. (567.40, -5.00%).

Volume Shockers

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

Top high volume gainers on BSE included Shilpa Medicare Ltd. (297.20, 9.12%), Zensar Technologies Ltd. (293.45, 8.20%) and Symphony Ltd. (1,110.05, 4.71%).

Top high volume losers on BSE were Bank of India (70.90, -6.22%), G R Infraprojects Ltd. (1,130.20, -2.10%) and Uflex Ltd. (477.70, -1.73%).

Amber Enterprises India Ltd. (1,916.35, 3.28%) was trading at 6.9 times of weekly average. EPL Ltd. (161.40, 4.03%) and TeamLease Services Ltd. (2,512.00, -0.25%) were trading with volumes 6.2 and 5.8 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

8 stocks overperformed with 52-week highs, while 15 stocks tanked below their 52-week lows.

Stocks touching their year highs included - Bosch Ltd. (18,476.30, 1.61%), Cera Sanitaryware Ltd. (6,648.00, 3.29%) and Persistent Systems Ltd. (4,968.00, -1.86%).

Stocks making new 52 weeks lows included - Adani Transmission Ltd. (830.70, -5.00%) and Bata India Ltd. (1,412.80, -1.48%).

18 stocks climbed above their 200 day SMA including Allcargo Logistics Ltd. (377.65, 3.68%) and KIOCL Ltd. (206.25, 2.15%). 13 stocks slipped below their 200 SMA including Vedant Fashions Ltd. (1,168.90, -3.59%) and Sumitomo Chemical India Ltd. (459.35, -3.44%).

 
Trendlyne Marketwatch
Trendlyne Marketwatch
20 Feb 2023
Market closes lower, Geojit BNP Paribas upgrades UNO Minda to ‘Buy’ from ‘Add’

Trendlyne Analysis

Nifty 50closed at 17,844.60 (-99.6, -0.6%), BSE Sensexclosed at 60,691.54 (-311.0, -0.5%) while the broader Nifty 500closed at 14,938.65 (-65.3, -0.4%). Of the 1,971 stocks traded today, 675 were on the uptrend, and 1,237 went down.

Indian indices settled in the red, with the volatility index rising over 2%. The Nifty 50 fell nearly 100 points and closed below the 17,900 mark. Samvardhana Motherson International rose 2.5% after the company announced that it acquired Germany-based SAS Autosystemtechnik for around Rs 4,789 crore. KEC International also rose sharply as it won new orders worth Rs 3,023 crore across its various businesses.

Nifty Midcap 100 closed marginally higher, despite the benchmark index closing lower. However, Nifty Smallcap 100 pared its gains and settled in the red. Major sectoral indices closed in the red except for Nifty IT, which closed 0.5% higher.

Among major Asian indices, only Indian indices closed in the red. European stocks traded flat to lower, following the US indices futures. Brent crude oil futures traded higher after falling 4% in the past week as traders assessed the US fed’s rate hike trajectory, which could impact economic growth.

  • Relative strength index (RSI) indicates that stocks like ZF Commercial Vehicle Control Systems India, Finolex Cables, Sonata Software and Blue Star are in the overbought zone.

  • Tata Motors is rising as it signs an MoU with Uber to supply a fleet of 25,000 XPRES–T electric vehicles. They will be used in Uber's premium category service across Delhi, Mumbai and Kolkata, among other cities. Tata Motors will supply the vehicles in a phased manner from February.

  • CreditAccess Grameen, Happiest Minds Technologies, Star Health and Allied Insurance and Kalyan Jewellers India are trading above their third resistance or R3 level.

  • Sumitomo Chemical India rises more than 11% in trade today and 6.5% over the past week. The stock ranks high on Trendlyne’s checklist, scoring 73.9% and features in a screener of companies with RoCE improving in the past two years.

  • Rites secures an order worth Rs 76.1 crore pertaining to automatic signalling with continuous track circuiting and other associated services on the Dhaulpur-Gwalior section of the Jhansi division in the North Central Railway. The stock shows up in a screener for companies with zero promoter pledges.

  • PSU banks like Punjab & Sind Bank, UCO Bank, Bank of Maharashtra, Bank of Baroda and Indian Overseas Bank are falling. All constituents of the broader sectoral index Nifty PSU Bank are also trading in the red.

  • Commercial Services & Supplies, Utilities and Transportation sectors fall more than 14% over the past month.

  • Cipla is plunging as it receives Form 483 with eight observations from the US FDA for its Pithampur manufacturing facility. The form has been issued after the US FDA conducted a current good manufacturing practices (cGMP) inspection on the facility from February 6 to 17.

  • Prashant Pitti, co-founder of Easy Trip Planners, expects the company’s margins to hover around 40-45% for FY23 and rise back to 50% in the next few years.

  • Geojit BNP Paribas upgrades its rating on UNO Minda to ‘Buy’ from ‘Add’ but reduces the target price to Rs 586 from Rs 634. This implies an upside of 15.1% from the current market price. The brokerage believes the company’s diversified portfolio and robust order wins will drive healthy growth in the coming quarters. It expects the firm’s revenue to grow at a CAGR of 15.9% over FY23-25.

  • Prince Pipes & Fittings' promoters Vipul Jayant Chheda and Parag Jayant Chheda sell 1.2% and 0.7% stakes respectively in the company in a bulk deal on Friday.

  • Bharat Dynamics wins an export order worth $255 million. The order will be executed subject to government clearances.

  • Oil prices rise and trade around the $83 per barrel mark amid concerns about interest rate hikes. While zinc prices increase, aluminium prices fall due to weak demand in China.

  • Sun Pharmaceutical Industries acquires a 26.1% stake in Agatsa Software and 27.4% in Remidio Innovative Solutions for a total consideration of Rs 179.9 crore. Agatsa Software is an early-stage digital diagnostic devices company and Remidio Innovative Solutions provides products that enable the early detection of eye diseases.

  • Pennar Industries is rising as it bags orders worth Rs 851 crore across various business verticals. The company ranks high on Trendlyne’s checklist with a score of 78.26%. The stock also shows up in a screener for companies with high TTM EPS growth.

  • Ajay Patil, CFO of Cummins India, says there has been strong growth in demand across domestic and international markets in Q3FY23. He adds that the company aims to maintain the growth momentum.

  • KEC International rises as it wins new orders worth Rs 3,023 crore across its various businesses. The orders include executing infra works in the water pipeline and commercial building segments in India, transmission and distribution projects in the Americas and various types of cables in India and overseas.

  • Dilip Buildcon is rising as its joint venture receives an order worth Rs 1,947.1 crore from the Madhya Pradesh Jal Nigam, Bhopal. The order pertains to the engineering and construction of the Rewa Bansagar multi-village scheme. The contract also includes a trial run with operations and maintenance of the water supply scheme for 10 years.

  • Ajit Venkataraman, CEO of Finolex Industries, says the company reported its highest volumes in Q3FY23. He adds that Q4 and Q1 are strong quarters usually but Q4FY23 will be muted for the company.

  • United Breweries is falling as its Managing Director and Chief Executive Officer Rishi Pardal resigns on Thursday and accordingly, his six-month notice period commences.

  • Crisil’s Q4FY22 (the company follows the calendar year of January-December) net profit falls by 6.3% YoY to Rs 158 crore due to higher employee costs and other expenses. However, revenue rises 16.5% YoY led by healthy growth in the research, analytics and solutions segment. The stock shows up in a screener for companies with no debt.

  • Samvardhana Motherson International signs an agreement to acquire a 100% stake in SAS Autosystemtechnik (SAS) at an enterprise value of 540 million euros (Rs 4,790 crore). The company will fund the acquisition through a mix of debt and internal accruals. The stock shows up in a screener with revenues increasing sequentially over the past four quarters.

Riding High:

Largecap and midcap gainers today include Star Health and Allied Insurance Company Ltd. (566.20, 11.23%), Zomato Ltd. (54.60, 5.41%) and Adani Power Ltd. (162.90, 5.00%).

Downers:

Largecap and midcap losers today include Cipla Ltd. (964.00, -6.02%), Adani Enterprises Ltd. (1,621.45, -5.88%) and Adani Transmission Ltd. (874.40, -5.00%).

Movers and Shakers

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

Top high volume gainers on BSE included Star Health and Allied Insurance Company Ltd. (566.20, 11.23%), Sumitomo Chemical India Ltd. (475.70, 11.16%) and Sonata Software Ltd. (735.85, 8.21%).

Top high volume losers on BSE were Cipla Ltd. (964.00, -6.02%), Tata Investment Corporation Ltd. (2,114.00, -4.49%) and V-Guard Industries Ltd. (245.15, -1.82%).

Happiest Minds Technologies Ltd. (905.55, 6.45%) was trading at 12.4 times of weekly average. Cera Sanitaryware Ltd. (6436.00, 8.16%) and KEC International Ltd. (488.45, 2.77%) were trading with volumes 9.2 and 7.5 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

8 stocks overperformed with 52-week highs, while 16 stocks were underachievers and hit their 52-week lows.

Stocks touching their year highs included - Bosch Ltd. (18,148.00, 0.74%), Cera Sanitaryware Ltd. (6,436.00, 8.16%) and Persistent Systems Ltd. (5,062.05, 3.09%).

Stocks making new 52 weeks lows included - Adani Transmission Ltd. (874.40, -5.00%) and Bata India Ltd. (1,434.05, -0.42%).

13 stocks climbed above their 200 day SMA including Sumitomo Chemical India Ltd. (475.70, 11.16%) and Allcargo Logistics Ltd. (364.25, 6.16%). 19 stocks slipped below their 200 SMA including Suzlon Energy Ltd. (8.55, -3.93%) and Vedant Fashions Ltd. (1,210.35, -2.57%).

 
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The Baseline
18 Feb 2023
Five Interesting Stocks Today
  1. Siemens: This heavy electrical equipment stock announced its Q1FY23 results on Tuesday with net profit growth of 85.1% YoY to Rs 462.7 crore. Revenue has also increased 17.4% YoY, with growth across segments like smart infrastructure, mobility, and digital industries among others. The stock closed 3% above on Wednesday after its robust results. It touched an all-time of Rs 3,248.05 on Wednesday and then increased again to Rs 3,250 on Thursday. It shows up in a screener of stocks with strong momentum.

The management says that a substantial increase in the outlay for capex in infrastructure and railways in the recent Budget announcements will boost all business segments. After the company received a Rs 26,000-crore locomotive order from Indian Railways on January 16, it entered into the golden crossover zone (SMA 50 day trading above SMA 200 day). Since then, the stock has gained more than 8% in a month.

ICICI Securities and Prabhudas Lilladher remain positive on the stock and expect the company to grow further in automation and digitization products, according to reports. Also, a large orderbook gives visibility for revenue streams in a long-term perspective. Bob Capital Markets expects traction to pick up in the automation and digitalisation businesses. It has raised target price for the stock by 22% to Rs 3,800. Trendlyne’s consensus recommendation shows that 12 analysts recommend a ‘Buy’, while five give ‘Hold’ and ‘Sell’.

However, the company is battling high import costs of machine components as input costs were up 37% YoY in Q1FY23. Also, any slowness in capex and low profitability from the mobility business can slow down growth.

  1. Gujarat Gas: This city gas distribution company fell 2% on Tuesday as its sales declined 27.1% YoY to Rs 3,821.3 crore in Q3FY23. However, its net profit has grown 202.2% YoY to Rs 371.6 crore. The stock shows up in a screener of companies with increasing net profit and profit margin (YoY). Its net profit beat the Forecaster estimates by 7.5%, but revenue missed Trendlyne’s forecaster estimates by 21.4%.

ICICI Securities says that lower volumes from the key region of Morbi drove the drop in revenue. However, with rising propane prices, the brokerage believes the company may see some revival in volume trends in Q4FY23. The brokerage maintains its ‘Add’ rating on the company as volumes and margins are likely to remain volatile. But it believes a reduction in gas prices for both domestic and LNG, and a relatively stronger propane price environment could drive steady growth in operating margins. It has given the company a target price of Rs 540, indicating a potential upside of 11.8%. It estimates the company’s revenue to grow at a CAGR of 1.2% over FY22-25.

The stock ranks high on Trendlyne’s checklist with a score of 60.9%, while the consensus recommendation on the stock is ‘Hold’.

  1. Zee Entertainment: This broadcasting & cable TV company has been falling after it posted weak results. In Q3FY23, the company’s profit fell 92% to Rs 24.3 crore from Rs 299 crore in Q3FY22, while revenue remained flat at Rs 2,111 crore. As a result, the company features in a screener of stocks with a decline in quarterly net profit and falling profit margin (YoY). Revenue has been in line with Forecaster estimates but profit missed estimates by over 90%.

Advertising revenue has declined to Rs 1,063 crore due slowdown in ad spends by FMCG companies, considering the challenging macroeconomic environment.

In addition, Zee’s EBITDA also fell 27.5% YoY and operating margins contracted because of elevated investments in content, marketing and technology.

Post results, foreign brokerage CLSA maintains its ‘Buy’ rating and believes the upcoming Zee-Sony merger could likely be a re-rating catalyst. But ICICI Securities maintains its ‘Hold’ rating. The brokerage has cut its EPS estimates for the company to around 14% for FY24E and reduced the target price to Rs 225.

On Tuesday, NCLT (National Company Law Tribunal) adjourned the hearing on the petitions against the merger of Zee Entertainment with Culver Max Entertainment (formerly known as Sony Pictures Networks India) to March 9, according to reports. In December 2021, Zee and Sony signed a definitive agreement to merge their operations. As the merger was nearing its finish line, Zee’s creditors and lenders, including IndusInd Bank, Axis Finance, IDBI Bank and Indian Performing Right Society (IPRS), filed a petition against the merger, seeking the repayment of debt. The company's merger had already been approved by NCLT, stock exchanges and shareholders. CCI has  given conditional approval.

  1. Torrent Power: Theelectrical utilities firm saw itsQ3FY23 revenue and profit grow by 33% and 86% YoY respectively. Torrent Power has been able to reduce its transmission and distribution losses across establishments. Electricity generation with Regasified LNG (RLNG) declined due to the higher cost of RLNG. However, it was offset by higher generation in solar power plants.

    Torrent Power’s margins improved on the back of the sale of LNG and increased contribution of electricity generation from the newly acquired Dadar and Nagar Haveli units. The company has seen strong demand from its franchise and licence division. It gained 12% in the past week on the back of good results. The stock shows up in thescreener for strong momentum with price above short-term and long-term moving averages.

Its management sees a capex of Rs 1,500 crore in electricity generation and another Rs 250 crore in the transmission and distribution business to increase profitability. HDFC Securities says Torrent Power's profitability has increased on the back of solid LNG trading. Its investment in the transmission and distribution business will cut down losses and new plants (a 115 MW wind power plant, and a likely300 MW solar plant)  will add to the revenue. The capex incurred by Torrent Power will help it sustain the growth, maintaining the bottom line. HDFC Securities maintains an ‘Accumulate’ rating on the company.

  1. Finolex Cables: This electrical & telecommunication cables manufacturer has gained 22% till Thursday, since announcing its Q3FY23 results on February 9. Its consolidated net profit rose 7.9% YoY to Rs 154.3 crore. The firm’s standalone net profit surged 41.7% YoY, beating Trendlyne’s Forecaster estimates by 63.1%. Consolidated revenue grew 18.2% YoY, driven by robust growth in sales volumes across all segments. This healthy performance helped the company show up in a screener for companies with improving cash flows and high durability scores.

The stock’s bull run post its results comes on the back of a strong business outlook and economic tailwinds. The management believes that the company will be a direct benefactor of the Centre’s push toward infrastructure development. It expects demand for electric cables from real estate and construction sectors to increase in the coming quarters. Notably, the electric cables segment contributed 64.6% to the firm’s consolidated revenue in Q3 and grew by 14.6% YoY. 

The company’s communication cables segment is also expected to benefit from the increased spending toward telecommunication from government and private companies. Although the segment has contributed only 10% to Finolex Cables’ revenue, it grew by 59.7% YoY. The sales volume of its optic fibre cables jumped 70% YoY on the back of robust demand. 

Looking ahead, the management is focusing on expanding its distribution reach and improving product availability to gain market share. According to reports, brokerage Sharekhan believes the company is well-placed to capitalise on the Centre’s increase in infrastructure capex, given its debt-free balance sheet, improving cash flows and distribution reach.   

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
17 Feb 2023
Market closes lower, Prabhudas Lilladher upgrades rating on Thermax to ‘Buy’ from ‘Add’

Trendlyne Analysis

Nifty 50closed at 17,944.20 (-91.7, -0.5%), BSE Sensexclosed at 61,002.57 (-316.9, -0.5%) while the broader Nifty 500 closed at 15,003.95 (-79.8, -0.5%). Of the 1,948 stocks traded today, 710 were in the positive territory and 1,174 were negative.

Nifty 50recouped the losses made in the morning session but still closed in the red, below the key 18,000 mark. Indigo's promoters offload a 4% stake worth Rs 2,900 crore via a block deal. GAIL (India) plans to buy a 26% stake in an LNG liquefaction plant in the USA.

Nifty Smallcap 100 and Nifty Midcap 100 closed in the red, following the benchmark index. Nifty Realty closed lower, led by industry heavyweights India Bulls Real Estate and Lodha Group. Nifty IT also closed in the red, following the tech-heavy Nasdaq 100 index which closed 1.78% lower on Thursday.

In international markets, major Asian indices closed in the red amid negative global cues. European stocks edge lower, except France’s CAC index at an all-time high. US indices futures trade in the red, indicating a negative start for the day.

  • Britannia Industries beats Nestle in YoY revenue & net profit growth, one-year price change and FII holdings. But it lags in annual & three-year RoE, one-month MF holding change and broker average rating.

  • GAIL (India) is rising as it plans to buy a 26% stake in an LNG liquefaction plant in the USA directly or through its subsidiary, according to reports. The company plans to source 1 million tonnes of LNG per annum on a free-on-board basis for 15 years.

  • Ipca Laboratories hits a 52-week low of Rs 815 and is trading in the red. This is after it posted weak results in Q3FY23, where its net profit fell 45.3% YoY to Rs 107.8 crore. The stock ranks medium on the Trendlyne checklist score, along with low valuation and momentum scores.

  • Minda Corp acquires a 15.7% stake in Pricol for Rs 400 crore through an open market transaction. However, Pricol has clarified that it has no knowledge of the deal and that its promoters have no intention of selling their stake. Minda Corp claims this is merely a financial investment and it will not have any special rights other than the rights of a shareholder.

  • Cement stocks like Ultratech Cement, Grasim Industries, Shree Cements and Ambuja Cements are rising as reports suggest the companies will take a price hike of Rs 15 per bag, effective from today.

  • Foreign institutional investors invest Rs 5,636.4 crore in the equity market over the past week, according to Trendlyne's FII dashboard. Meanwhile, stock futures witness the highest outflow of Rs 86.8 crore from foreign investors.

  • Hindustan Aeronautics, Cummins and Page Industries outperform the Nifty 50 index over the week post their Q3FY23 results.

  • Nestleand GMR Airports Infrastructure Q3FY23 net profits fall 6% and 7.9% QoQ but rise 62.4% and 137% YoY respectively.

  • Zydus Lifesciences receives the final approval from the USFDA for sirolimus tablets. The drug is used to prevent the body from rejecting a transplanted kidney in people 13 years of age or older. The tablets have annual sales of $69 million in the US as of December 2022.

  • Bhanu Chopra, CEO of RateGain Travel Technologies, says the company’s margin will expand by 200-300 bps annually. He adds that RateGain will exceed the EBITDA margin target of 20% by FY25.

  • Gensol Engineering wins orders worth Rs 501.2 crore for the development of solar power projects aggregating to a capacity of over 247 megawatt-peak in Andhra Pradesh, Jharkhand, Kerela and Rajasthan, among others.

  • Prabhudas Lilladher upgrades its rating on Thermax to ‘Buy’ from ‘Add’ and raises the target price to Rs 2,604 from Rs 2,556. This indicates an upside of 27.4%. The brokerage turns bullish about the company’s prospects on the back of growing order inflow, improving margins, capacity expansion, robust balance sheet and healthy demand outlook.

  • Hindustan Aeronautics and Bharat Forge are rising as the companies sign a memorandum of understanding (MoU) with Saarloha Advanced Materials. The MoU is for the development and production of aerospace grade steel alloys.

  • Ultratech Cement is rising in a weak market, touching a 52-week high of Rs 7,391 as it announces the commissioning of 1.3 mtpa brownfield capacity at Chattisgarh. It has also additionally commissioned a 2.8 mtpa greenfield grinding capacity in Odisha. The company’s total cement manufacturing capacity now stands at 126.9 mtpa.

  • Goldman Sacs maintains its ‘Neutral’ rating on Nestle India with a target price of Rs 19,900. The brokerage says that large price hikes taken by the company have helped volume growth and margin pressure.

  • PSU banks like UCO Bank, Union Bank of India, Bank of India, Bank of Baroda and Punjab National Bank are falling in trade. All constituents of the broader sectoral index Nifty PSU Bank are also trading in the red.

  • Glenmark Pharmaceuticals receives a second tentative approval from the USFDA for saxagliptin tablets, the generic version of onglyza tablets. Over the past year till December 2022, onglyza tablets have achieved annual sales of $122.3 million. The stock shows up in a screener for companies with zero promoter pledges.

  • Promoter Shobha Gangwal sells a 4% stake (1.5 crore shares) worth Rs 2,943.8 crore in InterGlobe Aviation (Indigo) in a bulk deal.

  • Reliance Jio gains 17.1 lakh wireless subscribers in December on a net basis, while Bharti Airtel adds 15.3 lakh and Vodafone Idea loses 24.7 lakh.

  • Railtel Corp of India receives orders from Bangalore Metro Rail Corp for supply, installation testing and commissioning of the IT network infrastructure worth Rs 27.1 crore and a comprehensive annual maintenance contract worth Rs 6.22 crore per year for five years.

  • Angel One’s CEO Narayan Gangadhar resigns with effect from May 16 due to personal reasons. The company’s day-to-day operations will be managed by Chairman and Managing Director Dinesh Thakkar for the time being.

  • Schaeffler India’s Q4FY22 (the firm follows the calendar year of January - December) net profit rises 21.2% YoY to Rs 231 crore driven by a favourable sales mix. Revenue grows by 17.8% YoY led by robust growth in the automotive technologies segment. The stock shows up in a screener for companies with improving book value per share over the past two years.

Riding High:

Largecap and midcap gainers today include Adani Wilmar Ltd. (438.25, 5.00%), Adani Power Ltd. (155.15, 4.97%) and Schaeffler India Ltd. (2,943.00, 3.99%).

Downers:

Largecap and midcap losers today include Adani Total Gas Ltd. (971.50, -5.00%), Adani Transmission Ltd. (920.40, -4.97%) and Biocon Ltd. (232.50, -4.26%).

Crowd Puller Stocks

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

Top high volume gainers on BSE included Shilpa Medicare Ltd. (295.95, 14.66%), TCNS Clothing Co. Ltd. (501.60, 13.54%) and Timken India Ltd. (3,155.90, 4.78%).

Top high volume losers on BSE were Minda Corporation Ltd. (203.85, -4.61%), Ipca Laboratories Ltd. (830.90, -3.66%) and Bharat Dynamics Ltd. (872.70, -3.23%).

Schaeffler India Ltd. (2,943.00, 3.99%) was trading at 16.5 times of weekly average. Prince Pipes & Fittings Ltd. (573.80, -1.16%) and Krishna Institute of Medical Sciences Ltd. (1,401.20, -1.08%) were trading with volumes 13.1 and 12.3 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 9 stocks were underachievers and hit their 52-week lows.

Stocks touching their year highs included - Supreme Industries Ltd. (2,746.50, 1.36%), UltraTech Cement Ltd. (7,297.85, 1.76%) and APL Apollo Tubes Ltd. (1,287.90, -2.52%).

Stocks making new 52 weeks lows included - Adani Transmission Ltd. (920.40, -4.97%) and Bata India Ltd. (1,440.05, -0.69%).

19 stocks climbed above their 200 day SMA including Schaeffler India Ltd. (2,943.00, 3.99%) and Mishra Dhatu Nigam Ltd. (208.85, 2.68%). 15 stocks slipped below their 200 SMA including Capri Global Capital Ltd. (703.55, -6.50%) and Minda Corporation Ltd. (203.85, -4.61%).

 
Trendlyne Marketwatch
Trendlyne Marketwatch
16 Feb 2023
Market closes flat, Nestle's Q3FY23 net profit grows 65.5% YoY to Rs 628 crore

Trendlyne Analysis

Nifty 50closed at 18,035.85 (20, 0.1%), BSE Sensexclosed at 61,319.51 (44.4, 0.1%) while the broader Nifty 500closed at 15,083.75 (44.1, 0.3%). Of the 1,960 stocks traded today, 1,055 were on the uptrend, and 834 went down.

Nifty 50 pared early gains made in the morning session and closes flat above the key 18,000 mark. HDFCraised USD 3 billion in the largest local bond issue. The Indian government has slashed the windfall tax on crude oil from Rs 5,050 to Rs 4,350 per tonne. Windfall tax on exports of aviation fuel and diesel was also reduced.

Nifty Smallcap 100 and Nifty Midcap 100 closed in the green, despite the benchmark index closing flat. Nifty Bank closed lower, led by industry heavyweights SBI and HDFC Bank. Nifty IT also closed in the green, following the tech-heavy Nasdaq 100 index, which closed 0.92% higher on Wednesday.

In international markets, major Asian indices closed in the green, amid positive global cues. European stocks edged higher, shrugging off the interest rate hike worries based on UK jobs data. US indices futures trade in the red, indicating a negative start for the day.

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

  • Hindustan Aeronautics is surging as it receives Indian Technical Standard Order (ITSO) authorisation from the Directorate General of Civil Aviation (DGCA) for its indigenously developed cockpit voice recorder (CVR) and flight data recorder (FDR), according to reports. The company has also won a contract from the Argentinian Air Force to supply spare parts and engine repair of legacy two-tonne class helicopters.

  • Bharat Dynamics is rising as it enters into 10 MoUs with several foreign and domestic companies during Aero India 2023. The stock shows up in a screener for companies with net profits increasing sequentially for the past two quarters. According to Trendlyne’s Forecaster, the consensus recommendation for Bharat Dynamics is ‘Buy’.

  • Nestle India is rising as its net profit grows 65.5% YoY to Rs 628 crore in Q3FY23. Domestic sales see growth, driving the revenue to increase by 13.6% YoY. The company features in a screener of stocks with improving net profit and profit margin (QoQ).

  • NMDC ranks medium on the Trendlyne Checklist score. Forecaster consensus recommendation shows that 11 analysts recommend a ‘Buy’ for the stock. Consecutive price hikes taken by the company in January will aid in improving sales realizations in Q4FY23. However, it shows up in a screener of stocks with weak momentum.

  • Adani Power's deal worth Rs 7,017 crore with DB Power falls through as the long stop date under the memorandum of understanding expires. The deal was in regards to buying thermal power assets of DB Power.

  • Nomura initiates coverage on Motherson Sumi Wiring with a ‘Buy’ rating. The brokerage says the company is the leader in the wiring harness segment in India, with a market share of around 45%. It also expects the company’s revenue CAGR to grow to 15% over FY23-25.

  • Ambuja Cements has been declared the preferred bidder for the Uskalvagu limestone block in Malkangiri, Odisha. The block is estimated to have limestone reserves of 141 million tonnes. The stock shows up in a screener for companies with low debt.

  • Aurobindo Pharma's arm APL Healthcare's Unit-I and III, orals and derma manufacturing facilities at Jadcherla, Mahabub Nagar district, Telangana, have been classified as Voluntary Action Indicated by the US FDA.

  • Tanla Platforms is surging as it plans to launch Wisely ATP, an anti-phishing technology platform, at the Mobile World Congress (MWC) in Barcelona on February 27. The company is also in discussions with three major banks in India to launch a proof of concept (POC) of the platform's functioning.

  • Axis Direct maintains its ‘Buy’ rating on GR Infraprojects but reduces its target price to Rs 1,550 from Rs 1,600. This implies an upside of 33.5% from the current market price. The brokerage cites the slowdown in order wins for lowering the target price but believes the firm’s robust order book and execution prowess will drive future growth.

  • Reports suggest that 1.7 crore shares (4.4% equity) of InterGlobe Aviation (Indigo), amounting to Rs 3,221 crore, change hands via a block deal.

  • MSCI decides to postpone the implementation of weighting updates for Adani Total Gas and Adani Transmission to the May benchmark review, according to reports. Both stocks continue to trade in the red.

  • Apollo Hospitals, Vodafone Idea and NBCC's Q3FY23 net profits fall 24.8%, 5.2% and 27.6% QoQ respectively.

  • Goldman Sachs expects brent crude oil prices to rise at a moderate pace to $100 per barrel by December from the earlier estimate of $105.

  • IT stocks like Mphasis, Tech Mahindra, L&T Technology Services and LTIMindtree are rising in trade. The broader sectoral index Nifty IT is also trading in the green.

  • The Centre reduces windfall tax on locally produced crude oil to Rs 4,350 per tonne from Rs 5,050 earlier. It has also slashed the export tax on diesel to Rs 2.5 per litre from Rs 7.5. The windfall tax on aviation turbine fuel (ATF) falls to Rs 1.5 per litre from Rs 6.

  • Hindustan Aeronautics rises as it inks a contract with Argentinian Air Force for the supply of spares and engine repair of legacy two-tonne class helicopters.

  • Bharti Airtel, Shree Cements and Trent outperform the Nifty 50 index over the month post their Q3FY23 results.

  • Oil and Natural gas Corp (ONGC) is rising after it issues a clarification regarding the signing of an MoU. The MoU was signed by ONGC Videsh (a wholly owned subsidiary of ONGC) with an Argentina-based oil company to improve cooperation in the areas of exploration and development of oil and gas opportunities.

  • Vedanta has been declared the preferred bidder for the Sijimali bauxite block in Rayagada, Odisha. The block is estimated to have bauxite reserves of 311 million tonnes. The stock shows up in a screener for companies with improving net cash flow over the past two years.

Riding High:

Largecap and midcap gainers today include PI Industries Ltd. (3,377.05, 8.17%), Hindustan Aeronautics Ltd. (2,665.40, 7.37%) and Oil And Natural Gas Corporation Ltd. (155.90, 5.69%).

Downers:

Largecap and midcap losers today include Adani Total Gas Ltd. (1,022.60, -5.00%), Adani Transmission Ltd. (968.55, -4.81%) and InterGlobe Aviation Ltd. (1,897.25, -4.47%).

Volume Rockets

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

Top high volume gainers on BSE included Bharat Dynamics Ltd. (901.80, 12.71%), Solar Industries India Ltd. (3,978.00, 8.55%) and PI Industries Ltd. (3,377.05, 8.17%).

Top high volume losers on BSE were Adani Total Gas Ltd. (1,022.60, -5.00%), Adani Transmission Ltd. (968.55, -4.81%) and InterGlobe Aviation Ltd. (1,897.25, -4.47%).

Tanla Platforms Ltd. (652.80, 8.04%) was trading at 18.4 times of weekly average. Shilpa Medicare Ltd. (258.10, 8.08%) and Adani Green Energy Ltd. (616.30, -0.76%) were trading with volumes 10.7 and 8.9 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

10 stocks made 52-week highs, while 9 stocks hit their 52-week lows.

Stocks touching their year highs included - Blue Star Ltd. (1,419.65, 2.53%), Cummins India Ltd. (1,644.30, 0.95%) and Mahindra & Mahindra Ltd. (1368.15, -0.81%).

Stocks making new 52 weeks lows included - Adani Transmission Ltd. (968.55, -4.81%) and Bata India Ltd. (1,450.05, -1.72%).

28 stocks climbed above their 200 day SMA including Bharat Dynamics Ltd. (901.80, 12.71%) and PI Industries Ltd. (3,377.05, 8.17%). 9 stocks slipped below their 200 SMA including One97 Communications Ltd. (628.90, -1.74%) and Bharat Petroleum Corporation Ltd. (325.70, -1.65%).

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

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

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

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

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

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

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

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

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

Trendlyne Analysis

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Riding High:

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

Downers:

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

Movers and Shakers

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

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

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

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

BSE 500: highs, lows and moving averages

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

(You can find all analyst picks here)