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Trendlyne Marketwatch
Trendlyne Marketwatch
05 Jan 2023
Market closes lower, private banks are falling in trade

Trendlyne Analysis

Indian indices close in the red, with the Nifty 50 falling below the key 18,000 mark. However, other Asian indices closed higher, in line with the US indices. European stocks opened lower than Wednesday's levels except for FTSE100 trading in green. US stocks settled in the green on Wednesday after gyrating between losses and gains on a volatile day of trade. Investors assessed the minutes from the US Fed’s December meeting, which showed Fed officials remained determined to keep rates high to bring inflation down.
The tech-heavy Nasdaq 100 rose 0.5% while the Dow Jones closed 0.4% higher. Brent crude oil futures trade marginally higher after falling nearly 10% in the last two trading sessions.

Nifty Smallcap 100 closed flat after a volatile day of trade and Nifty Midcap 100 closed in green. Nifty Metal and Nifty Media closed higher in final session of closing trades. Nifty Auto and Nifty Pharma closed in green maintaining the gains made in early trading session in the morning. Nifty IT closed in red even though tech-heavy Nasdaq 100, which closed in the green on Wednesday.

Nifty 50closed at 17,992.15 (-50.8, -0.3%), BSE Sensexclosed at 60,353.27 (-304.2, -0.5%) while the broader Nifty 500closed at 15,386.20 (-6.8, 0.0%)

Market breadth is in the red. Of the 1,956 stocks traded today, 853 were gainers and 1,051 were losers.

  • Relative strength index(RSI) indicates that stocks like The Fertilisers and Chemicals Travancore, Swan Energyand Abbott Indiaare in the overbought zone.

  • Chola Wealth Direct assigns a ‘Buy’ rating on Muthoot Finance with a target price of Rs 1,550. This indicates an upside of 42.8%. The brokerage believes the firm will continue to dominate the gold financing market given its lean cost structure, operational efficiencies and high standards of collection. It expects the company’s net profit to grow at a CAGR of 11.9% over FY22-24.

  • Ujjivan Small Finance Bank’s advances in Q3FY23 surge 33% YoY to Rs 21,895 crore and deposits jump 49% YoY, led by strong momentum in retail deposits. RBL Bank’s advances also rise 14% YoY to Rs 68,371 crore and deposits by 11% during the same period.

  • Godrej Consumer Products sees QoQ rise in volumes led by Home Care and Personal Care segments in Q3FY23. The company’s Indonesian business is recovering in constant currency terms. Management says that the company’s profit and gross margins should improve, leading to better EBITDA growth in Q3.

  • Reports suggest that around 16 lakh shares (0.25% equity) of Havells India, amounting to Rs 184.4 crore, change hands.

  • Abbott India rises for four consecutive sessions and touches its 52-week high of Rs 22,200 today. The stock ranks high on Trendlyne’s checklist with a score of 77.3%. It also features in a screener of companies with RoCE improving over the past two years.

  • Likhitha Infrastructure is rising after it announced that it received multiple orders worth Rs 457.4 crore from various oil & gas distribution companies between October and December 2022. The stock shows up in a screener for companies with revenue increasing sequentially for the past four quarters.

  • Bank stocks like ICICI Bank, Axis Bank, Bandhan Bank and Au Small Finance Bank are falling in trade. The broader sectoral index Nifty Bank is also trading in the red.

  • Tyre stocks like MRF, Apollo Tyres and Ceat are rising in trade. The broader auto tyres & rubber products industry is trading above 3%. These feature in a screener of stocks benefitting from lower crude oil prices as Brent crude prices fall 6% over the past week.

  • Sandeep Sangwan, Managing Director of Castrol India, says that the company is considering to expand its footprint in the EV segment, and working with global and Indian OEMs for the supply of EV fluids.

  • Nifty 50was trading at 17,900.45 (-142.5, -0.8%), BSE Sensexwas trading at 60,092.14 (-565.3, -0.9%) while the broader Nifty 500was trading at 15,291.80 (-101.2, -0.7%).

  • Market breadth is in the red. Of the 1,939 stocks traded today, 639 showed gains, and 1,243 showed losses.

  • ICICI Securities maintains ‘Buy’ rating on Nuvoco Vistas Corp and increases the target price to Rs 490 from Rs 465. This implies an upside of 33.2%. The brokerage believes the company will benefit from the expected high demand in East India over the next couple of years, given its sizable market share in the region. It expects the firm’s margins to improve due to better pricing and debt reduction.

  • GR Infraprojects' arm GR Bhimasar Bhuj Highway receives a letter from the National Highways Authority of India declaring the appointed date for a Rs 1,085 crore project to upgrade the road from Bhimasar to the airport in Gujarat to a four-lane with paved shoulder on a hybrid annuity mode.

  • BofA upgrades its rating on Voltas and Havells India to ‘Buy’ from ‘Underperform’ with a target price of Rs 899 and Rs 1,290 respectively. The brokerage says that localisation of the AC value chain will benefit both companies.

  • Adani Ports & Special Economic Zone’s December 2022 cargo volumes rise 8% YoY to 25.1 million metric tonnes (MMT). During April-December 2022, its cargo volumes increased by 8% YoY to 253 MMT. The stock shows up in a screener for companies with improving cash flow from operations over the past two years.

  • NTPC and Hindustan Petroleum Corp are rising as NTPC's subsidiary, NTPC Green Energy, signs a memorandum of understanding (MoU) with HPCL. The MoU is to develop renewable energy-based power projects and supply 400 MW of renewable power to HPCL's facilities.

  • SJVN is rising after announcing an investment of Rs 2,615 crore in the hydroelectric project in Himachal Pradesh. The project will be completed in the next five years with SJVN earning a 16.5% RoE.

  • Retail sales for the automotive industry fall 5.4% YoY to 16.2 lakh units in December 2022, shows data from the Federation of Automotive Dealers' Association. Two-wheeler retail sales decline 11.2% YoY, while cars go up 8.2%% YoY.

  • Dolly Khanna sells her shares in NCL Industries in Q3FY23 and now holds a stake below 1% in the company.

  • The Reserve Bank of India (RBI) lifts the order restricting Mahindra & Mahindra Financial Services from appointing third-party agents for its recovery actions. RBI had asked the company to cease recovery or repossession activities on September 22, 2022. The stock is up 1.5% in trade today.

  • Bajaj Finance’s AUM grows 27% YoY to Rs 2.3 lakh crore in Q3FY23 with new loans booked rising 5.4% YoY. Customer franchise increases 19% to 6.6 crore for the NBFC. It shows up in a screener with improving cash flow YoY and durability.

  • Marico’s India business grows in mid-single digits in Q3FY23 as cooking oil volumes increase. International business sees steady growth despite currency depreciation and high inflation. The management says that fall in input costs and better consumer prices will help improve gross and operating margins on a QoQ and YoY basis in Q3.

Riding High:

Largecap and midcap gainers today include Adani Total Gas Ltd. (3,633.70, 4.50%), ABB India Ltd. (2,806.00, 3.73%) and MRF Ltd. (91,275.80, 3.71%).

Downers:

Largecap and midcap losers today include Bajaj Finance Ltd. (6,100.05, -7.17%), Bajaj Finserv Ltd. (1,468.85, -5.10%) and Cholamandalam Investment & Finance Company Ltd. (683.25, -4.91%).

Movers and Shakers

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

Top high volume gainers on BSE included Engineers India Ltd. (84.80, 7.48%), Apollo Tyres Ltd. (338.25, 5.69%) and Minda Corporation Ltd. (218.90, 4.99%).

Top high volume losers on BSE were Bajaj Finance Ltd. (6,100.05, -7.17%), Bajaj Finserv Ltd. (1,468.85, -5.10%) and Devyani International Ltd. (173.60, -2.20%).

Godrej Industries Ltd. (430.10, -0.16%) was trading at 27.6 times of weekly average. Sundram Fasteners Ltd. (1,004.60, 4.40%) and Ceat Ltd. (1,666.90, 3.48%) were trading with volumes 22.9 and 11.9 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 5 stocks hit their 52-week lows.

Stocks touching their year highs included - Abbott India Ltd. (22,105.15, 0.77%), Apollo Tyres Ltd. (338.25, 5.69%) and Power Finance Corporation Ltd. (156.90, 1.55%).

Stocks making new 52 weeks lows included - Relaxo Footwears Ltd. (889.05, -0.31%) and Galaxy Surfactants Ltd. (2,430.75, -0.57%).

15 stocks climbed above their 200 day SMA including Minda Corporation Ltd. (218.90, 4.99%) and Hindustan Petroleum Corporation Ltd. (245.95, 2.05%). 21 stocks slipped below their 200 SMA including Bajaj Finserv Ltd. (1,468.85, -5.10%) and Cholamandalam Investment & Finance Company Ltd. (683.25, -4.91%).

 
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The Baseline
05 Jan 2023
Screener of the week: Stocks delivering consistent returns and growth since the past three years
By Deeksha Janiani

American martial artist Bruce Lee once said that “long-term consistency trumps short-term intensity”.  The comment about martial arts holds true for stock markets as well. Consistent growth stocks have rewarded investors with higher returns time and again.

Companies like Varun Beverages and Tube Investments of India have grown their profits at a CAGR of over 30% in the past three fiscal years. They multiplied investors’ wealth at a whopping rate of over 60% between 2019 and 2022 end.

Varun Beverages has steadily expanded its distribution reach into newer geographies, and added new products to its portfolio. The company also took advantage of the sudden jump in out-of-home consumption post the omicron wave. It more than doubled its profits on a TTM basis and also doubled investors’ money in 2022. 

Tube Investments has been diversifying its product portfolio away from the auto sector, which is cyclical in nature. The company managed to post robust growth between FY19-FY22, a period of downcycle for the auto space. It staged a successful turnaround of CG Power in FY22, which is now driving its higher growth along with its export markets. 

PI industries is another player which has benefited from the consistent growth of its export business over the past few years. It also clocked strong revenue growth in the past few quarters on robust volumes. The company was a top industry outperformer in the past year.

Emerging as the dark horse in the telecom sector, Bharti Airtel staged a smart recovery post the slowdown in FY16-FY19, and returned to the black in FY22. Healthy subscriber addition, market share gain in 4G segment and the robust rise in average revenue per user aided its financial growth. 

Smallcap capital goods stocks have also surprised investors with their consistent returns and net profit growth in the past three years. These companies benefited from strong order inflows as investments revived in railways, defence, infrastructure, metals and mining, and energy sectors. RHI Magnesita India and Timken India emerged as the fastest growers and wealth compounders within this group.

 
Trendlyne Marketwatch
Trendlyne Marketwatch
04 Jan 2023
Market closes lower, Motilal Oswal maintains ‘Buy’ rating on Prestige Estates Projects

Trendlyne Analysis

Nifty 50 fell nearly 190 points and closed in the red on a volatile day of trade. However, European stocks traded higher than Tuesday’s levels. India’s December Services PMI rose to a 6-month high of 58.5 compared to 56.4 in November. Asian indices closed mixed, despite the US indices closing in the red on Tuesday. US stocks fell and closed in the red on the first trading session of 2023 as investors looked ahead to Fed’s minutes release later today.

The tech-heavy Nasdaq 100 index closed in the red led by heavyweights Apple and Tesla. Tesla fell over 12% on Tuesday as it missed delivery estimates in Q4CY22. S&P 500 fell 0.4% while the Dow Jones closed flat on a volatile day of trade. Brent crude oil futures extended losses and traded deep in the red after falling over 4.2% on Tuesday as investors awaited cues on the US Monetary policy from the minutes of the Federal Reserve’s December meeting.

Nifty Smallcap 100 and Nifty Midcap 100 closed in the red, following the benchmark index. Nifty Media and Nifty FMCG closed lower than Tuesday’s levels. Nifty IT also closed in the red, taking cues from the Nasdaq 100, which fell 0.7% on Tuesday.

Nifty 50 closed at 18,042.95 (-189.6, -1.0%) , BSE Sensex closed at 60,657.45 (-636.8, -1.0%) while the broader Nifty 500 closed at 15,393.00 (-164.8, -1.1%)

Market breadth is sharply down. Of the 1,960 stocks traded today, 548 were gainers and 1,360 were losers.

  • Coromandel International beats The Fertilisers & Chemicals Travancore in QoQ revenue & net profit growth, PE ratio, and price-to-book ratio. But it lags in YoY revenue & net profit growth, annual RoE, and one-year price change.

  • Sonata Software, Suven Pharmaceuticals and Abbott Indiaoutperform their respective industries in terms of return on capital employed (RoCE).

  • The Fertilisers & Chemicals Travancore rises 5% in trade today. The stock has risen 142% over the past month. It ranks high in Trendlyne's checklist with a score of 62%.

  • Media stocks like Nazara Technologies, Dish TV India, TV18 Broadcast, Sun TV Network and Hathway Cable & Datacom are falling in trade. All constituents of the broader sectoral index Nifty Media are also trading in the red.

  • RBL Bank falls more than 4% in trade today. It ranks high on Trendlyne’s valuation and momentum scores but medium on the checklist score.

  • Vijay Kumar, Head and VP (Finance) of NCC, says that the company has bagged orders worth Rs 5,000 crore during Q3FY23. He adds that order inflows are strong and could likely be around Rs 16,000 crore in FY23.

  • Motilal Oswal maintains its ‘Buy’ rating on Prestige Estates Projects with a target price of Rs 675, indicating an upside of 44%. The brokerage expects the company’s launch pipeline to help it sustain robust pre-sales momentum in CY23 and get better cash flow visibility and debt reduction. It sees the firm’s revenue growing at a CAGR of 11% over FY22-25.

  • Allcargo Logistics buys a 100% stake in Asiapac Equity Investment, a company dealing with ocean freight logistics, for Rs 41.35 crore. The stock shows up in a screener with improving cash flow from operations for the past two years.

  • Crude oil prices fall by over 4% on Tuesday as investors wait for the US Federal Reserve’s monetary policy meeting to conclude. Fears of recession also play a role in the fall. While natural gas and aluminium prices continue to decline, gold prices are at their 7-month high levels.

    Reliance Industries’ wholly owned subsidiary Reliance Consumer Products is set to acquire a 50% equity stake in beverages company Sosyo. The acquisition will enable Reliance Consumer to enhance its beverage portfolio.

  • HDFC Bank’s net advances rise 19.5% YoY to Rs 15.1 lakh crore and deposits grow 19.9% YoY as of December 31, 2022. The bank’s CASA (current account savings account) deposits increase 12% YoY to Rs 7.6 lakh crore. The stock shows up in a screener for companies with high TTM EPS growth.

  • Norges Bank – Govt Pension Global buys a 0.66% stake (3.3 lakh shares) in Multi Commodity Exchange of India for Rs 50.1 crore in a bulk deal yesterday.

  • Metal stocks like Hindalco Industries, Vedanta and Jindal Stainless fall more than 2% in trade. The broader Nifty Metal index is also trading in the red.

  • Realty stocks like Godrej Properties, Brigade Enterprises and Oberoi Realty are falling in trade. All constituents of the broader Nifty Realty index are trading in the red.

  • India’s December Services PMI rises to a 6-month high of 58.5 compared to 56.4 in November on the back of robust demand.

  • Avenue Supermart's revenue from operations rises 24.7% YoY to Rs 11,304.6 crore in Q3FY23. The retailer adds four stores during the quarter, taking the total number to 306. It features in a screener of stocks with growth in quarterly net profit and increasing net profit (YoY).

  • Jefferies initiates coverage on Allcargo Logistics with a ‘Buy’ rating and target price of Rs 500. The brokerage says that the company is a good player in global trade and expects normalization of FY21-22 gains in FY23-24E.

  • Radiant Cash Management’s shares list at a premium of 9.6% to the issue price of Rs 94 on its debut on the bourses. The Rs 250 crore IPO was subscribed for 53% of the total shares on offer.

  • IndusInd Bank’s net advances rise 19% YoY to Rs 2.7 lakh crore, and deposits grow 14% YoY as on December 31, 2022. Punjab & Sind Bank’s gross advances also see a 17% YoY increase. Punjab & Sind Bank ranks high in the Trendlyne checklist score and is rising in a weak market.

  • Railtel Corp of India rises as it receives a work order from South Eastern Coalfields for providing VPN services at several locations under the SECL Command Area for a period of five years. The order value is Rs 186.19 crore.

  • Vedanta’s Q3FY23 total aluminium production falls 2% YoY to 566 KT (kilo tonnes), and steel declines 13% YoY due to maintenance activities. The firm’s power sales rise by 5% YoY to 3,616 million units. It shows up in a screener for stocks in the PE Buy zone with high durability and rising momentum scores.

Riding High:

Largecap and midcap gainers today include General Insurance Corporation of India (201.05, 2.42%), UNO Minda Ltd. (538.55, 2.21%) and 3M India Ltd. (22,029.95, 1.98%).

Downers:

Largecap and midcap losers today include Zomato Ltd. (56.35, -4.41%), JSW Steel Ltd. (736.30, -4.12%) and Aditya Birla Capital Ltd. (148.25, -3.95%).

Volume Shockers

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

Top high volume gainers on BSE included Prism Johnson Ltd. (111.50, 7.78%), Carborundum Universal Ltd. (930.30, 4.73%) and Caplin Point Laboratories Ltd. (745.75, 2.93%).

Top high volume losers on BSE were Avenue Supermarts Ltd. (3,924.20, -3.37%), Delhivery Ltd. (327.00, -3.10%) and IndusInd Bank Ltd. (1,223.10, -1.44%).

Equitas Small Finance Bank Ltd. (59.65, 0.51%) was trading at 7.4 times of weekly average. Havells India Ltd. (1,148.75, 1.84%) and Heidelberg Cement India Ltd. (189.00, 0.00%) were trading with volumes 4.5 and 3.6 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

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

Stocks touching their year highs included - Axis Bank Ltd. (957.45, -0.50%), General Insurance Corporation of India (201.05, 2.42%) and Equitas Small Finance Bank Ltd. (59.65, 0.51%).

Stocks making new 52 weeks lows included - Galaxy Surfactants Ltd. (2,448.00, -0.78%) and Aavas Financiers Ltd. (1,765.40, -1.82%).

10 stocks climbed above their 200 day SMA including Caplin Point Laboratories Ltd. (745.75, 2.93%) and 3M India Ltd. (22,029.95, 1.98%). 18 stocks slipped below their 200 SMA including Balrampur Chini Mills Ltd. (386.75, -3.87%) and Avenue Supermarts Ltd. (3,924.20, -3.37%).

 
Trendlyne Marketwatch
Trendlyne Marketwatch
03 Jan 2023
Market closes higher, ICICI Securities keeps ‘Buy’ rating on Jindal Steel & Power

Trendlyne Analysis

Indian indices closed in the green with the Nifty 50 rising above the 18,200 mark. The Centre raised windfall tax on petroleum, crude oil and aviation turbine fuel, as per a government order dated January 2. European stocks traded higher than Monday’s levels. Asian markets closed higher, in line with the US indices futures, which were trading higher. US markets were closed on Monday in observance of the New year. However, US indices futures ticked marginally higher as investors looked ahead to a busy week of economic data and Fed minutes release. Brent crude oil futures traded marginally lower after rising over 2.7% in the previous trading session as traders weigh slowing global economic growth against China lifting its Covid lockdowns.

Nifty Smallcap 100 and Nifty Midcap 100 closed in the green, despite the benchmark index trading flat. Nifty Bank and Nifty Pharma closed higher than Monday levels.Nifty IT closed higher, following the tech-heavy Nasdaq 100 futures, which are trading higher.

Nifty 50closed at 18,232.55 (35.1, 0.2%), BSE Sensexclosed at 61,294.20 (126.4, 0.2%) while the broader Nifty 500closed at 15,557.80 (34.2, 0.2%)

Market breadth is in the green. Of the 1,960 stocks traded today, 1,055 were gainers and 844 were losers.

  • Relative strength index(RSI) indicates that stocks like The Fertilisers and Chemicals Travancore, RBL Bankand Solar Industries Indiaare in the overbought zone.

  • Indian Energy Exchange’s total electricity production volumes rise 4% YoY to 7,964 million units. According to National Load Dispatch Center’s data, energy consumption is up 10% YoY to 121 billion units. It shows up in a screener of bearish stocks with low to medium Trendlyne scores.

  • PSU banks like UCO Bank, Bank of Maharashtra, Bank of India, Indian Overseas Bankand Central Bank of Indiaare rising. All constituents of the broader sectoral index Nifty PSU Bank are also trading in the green.

  • ICICI Securities maintains its ‘Buy’ rating on Jindal Steel & Power and increases the target price to Rs 750, an upside of 24.1%. The brokerage sees the firm’s margins grow as cost efficiencies improve due to ramp-up in captive coal production. It believes the company’s logistical advantages and capacity expansion will drive revenue growth in the coming quarters.

  • Sah Polymers’ Rs 66.3 crore IPO gets bids for 5.4X the available 56.1 lakh shares on offer on the last day of bidding. The retail investor quota gets bids for 16.5X the available 10.2 lakh shares on offer.

  • Kotak Institutional Securities initiates coverage on Life Insurance Corp of India with a ‘Buy’ rating and target price of Rs 1,000. The brokerage says shifting the product mix by its agency channel will expand LIC’s margin.

  • Larsen & Toubro’s arm L&T Construction bags orders worth Rs 5,000-7,000 crore from the government of Madhya Pradesh. The orders involve the execution of two lift irrigation projects in Dewar & Dhar of Madhya Pradesh.

  • Welspun India prepays term loans of Rs 45.8 crore at the end of 2022, along with other due instalments. The outstanding term loan, as of December 31, 2022, stands at Rs 129.72 crore against Rs 259.64 crore on March 31, 2022.

  • IT stocks like Mphasis, Coforge, Tata Consultancy Services and Tech Mahindra are rising in trade. The broader sectoral index Nifty IT is also trading in the green.

  • Federal Bank reaches an all-time high of Rs 142.2 per share as its Q3FY23 total deposits rise 14.8% YoY to Rs 2 lakh crore and gross advances rise 19.1% YoY to Rs 1.7 lakh crore. The bank shows up on the screener of stocks with good momentum and return on equity (RoE).

  • Advertising & Media, Fertilizers and Shipping industries rise more than 40% in the past 90 days.

  • Pranjul Bhandari, Managing Director and Chief India Economist at HSBC (India), expects India’s nominal GDP to fall to 9.5% from 15%, leading to slow tax growth.

  • Hindustan Zinc’s Q3FY23 mined metal production rises 1% YoY to 254 KT (kilo tonnes), while its integrated saleable metal production falls 2% due to lower availability and the planned shutdown of one of its lead plants in Q3. The stock shows up in a screener for companies with high TTM EPS growth.

  • Bank of Maharashtra rises more than 3% in trade after reporting a 15.8% YoY increase in total business to Rs 3.6 lakh crore in December 2022. Its gross advances grow 21.8% YoY. The bank ranks high in the Trendlyne checklist score and shows up in a screener of stocks with declining RoCE in the past two years.

  • The Centre raises the windfall tax on locally produced crude oil to Rs 2,100 per tonne from Rs 1,700 earlier and export tax on diesel to Rs 7.5 per litre from Rs 5. The windfall tax on aviation turbine fuel (ATF) rises to Rs 4.5 per litre from Rs 1.5 earlier. 

  • RateGain Travel Technologies is rising as it enters a definitive agreement to acquire Adara Inc through an asset purchase. RateGain's founder and chairman Bhanu Chopra says, "Adara’s key differentiator is its access to permissioned travel-intent data from the world’s top travel and hospitality players as well as destination marketing organizations and relying less on traditional methods of tracking consumer intent."

  • Granules India is rising as it inks a pact with Greenko ZeroC for the application of Green Molecule Solutions in the pharmaceutical industry. Granules India will build a green field facility for the manufacture of APIs, intermediates and fermentation-based products. The project costs Rs 2,000 crore and will be built over five years.

  • Zomato is falling as its co-founder and Chief Technology Officer (CTO) Gunjan Patidar tenders his resignation on Monday after the market close.

  • Jefferies initiates coverage on Piramal Pharma with a ‘Buy’ rating and target price of Rs 150. The brokerage expects a turnaround in the company’s consumer health business in FY24. It estimates an EBITDA CAGR of 21% during FY22-25E.

  • HFCL bags purchase orders worth Rs 95.38 crore from Reliance Projects & Property Management Services for the supply of optical fibre cables. The company shows up in a screener of stocks with consistent high returns over the past five years.

  • Mahindra & Mahindra Financial Services' December 2022 disbursements grow 67% YoY to Rs 4,650 crore. Total disbursements for Q3FY23 stand at Rs 14,450 crore. Gross NPAs are higher than Stage 3 assets, however, the NBFC maintains that extra provisioning may not be required for FY23.

  • PSP Projects emerges as the lowest bidder for the construction of a high-rise office building in Surat, Gujarat, for the Surat Municipal Corporation. The project is worth Rs 1,364.5 crore. The stock shows up in a screener for companies with improving cash flow from operations over the past two years.

Riding High:

Largecap and midcap gainers today include General Insurance Corporation of India (196.30, 4.53%), HDFC Life Insurance Company Ltd. (595.60, 4.44%) and Power Finance Corporation Ltd. (156.00, 4.21%).

Downers:

Largecap and midcap losers today include TVS Motor Company Ltd. (1,041.55, -2.94%), Mahindra & Mahindra Financial Services Ltd. (234.25, -2.82%) and Shriram Finance Ltd. (1,349.65, -2.61%).

Volume Shockers

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

Top high volume gainers on BSE included Swan Energy Ltd. (329.65, 6.08%), HDFC Life Insurance Company Ltd. (595.60, 4.44%) and Power Finance Corporation Ltd. (156.00, 4.21%).

Top high volume losers on BSE were Mahindra & Mahindra Financial Services Ltd. (234.25, -2.82%), Zydus Wellness Ltd. (1,511.00, -1.25%) and Oracle Financial Services Software Ltd. (2,999.55, -0.81%).

CSB Bank Ltd. (251.20, 3.20%) was trading at 16.1 times of weekly average. Motilal Oswal Financial Services Ltd. (711.05, 2.35%) and TeamLease Services Ltd. (2,512.00, -0.54%) were trading with volumes 9.5 and 8.6 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

16 stocks made 52-week highs, while 1 stock was an underachiever and hit a 52-week low.

Stocks touching their year highs included - Apollo Tyres Ltd. (325.40, -0.87%), Axis Bank Ltd. (962.30, 2.20%) and Canara Bank (336.80, 0.19%).

Stock making new 52 weeks lows included - Aavas Financiers Ltd. (1,798.05, -0.56%).

15 stocks climbed above their 200 day SMA including V-Mart Retail Ltd. (2,987.00, 5.55%) and Chemplast Sanmar Ltd. (463.80, 3.98%). 5 stocks slipped below their 200 SMA including Procter & Gamble Hygiene & Healthcare Ltd. (13,933.05, -2.38%) and BASF India Ltd. (2,775.05, -1.08%).

 
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The Baseline
02 Jan 2023
Five Analyst Picks with High Upsides
By Suhas Reddy
  1. Gujarat Fluorochemicals: ICICI Securities maintains its ‘Buy’ rating on this specialty chemicals company with a target price of Rs 4,270. This indicates an upside of 36.6%. Analysts Sanjay Jain and Akash Kumar are positive about the firm’s prospects given its capacity expansion in the fluoropolymers segment. They believe this will expand its presence in new-age industries such as batteries, solar panels and green hydrogen. The analysts also believe the stock is trading at an attractive valuation after a 25% fall “over the past three months, while fundamentals remain robust with opportunities expanding”. They say it is “the most affordable Indian fluorine player by valuations”. 

Jain and Kumar expect the firm’s fluoropolymers export market to grow exponentially in the coming quarters and margins to improve, given the cheaper cost of production compared to its western peers. The analysts estimate the company’s net profit to grow at a CAGR of 40.5% over FY22-24.  

  1. Chalet Hotels: Prabhudas Lilladher initiates coverage on this hotel chain with a ‘Buy’ rating and a target price of Rs 455. This indicates an upside of 26.9%. Analysts Jinesh Joshi and Stuti Beria believe that the company will be a key benefactor of the “expected recovery in business travel, complemented by an exposure to annuity business that acts as a hedge to the deeply cyclical hospitality industry.”

The analysts add that the firm’s hotel portfolio is situated in strategic locations of major cities, where threat of new room supply is low and entry barriers are high. Also, its affiliation with global brands like Marriott and Novotel gives it strong pricing power. They believe these advantages will enable the firm to perform well during the upcycle.

Joshi and Beria see robust room inventory addition in Pune and Hyderabad and a 2.6X increase in the commercial leasable area driving growth in the coming quarters. They expect Chalet Hotels’ net profit to grow at a CAGR of 68% over FY23-25. 

  1. Indraprastha Gas: BOB Capital Markets assumes coverage of this City Gas Distribution firm with a ‘Buy’ rating and target price of Rs 520, which indicates an upside of 24.1%. Analyst Kirtan Mehta is optimistic about the company’s growth prospects on the back of healthy sales volume growth. He believes this growth will be led by stable demand from Delhi and rising demand from new geographic areas. He wrote, “CNG demand is seeing annual growth of 10% in Delhi, 11-12% in Noida, 15% in Ghaziabad, 20% in Muzaffarnagar, 44% in Kanpur, 48% in Rewari, 29% in Karnal, and 24% in Kaithal as per H1FY23 data.” Most new geographical areas are clocking in more than 20% growth on a low base. 

Mehta also sees margins stabilising on the back of favourable government policies and higher sales volume. He sees the company’s margins returning to historical average levels on the back of the normalisation of gas purchase costs. The analyst expects the firm’s revenue to grow at a CAGR of 37.7% over FY22-24. 

  1. Axis Bank: Motilal Oswal gives a ‘Buy’ call to this bank with a target price of Rs 1,130, indicating an upside of 19.6%. Analysts Nitin Aggarwal and Yash Agarwal say, “Axis Bank has progressed well over the past few years and has strengthened its balance sheet by making it granular, increasing the mix of retail loans and improving its provisioning coverage ratio.” As a result, the analysts believe the bank’s key metrics, such as loan growth, margins and profitability, have improved. 

They believe that loan growth has witnessed a healthy recovery with 14-18% growth over the past year and expect sustainable loan growth over the medium term on the back of the bank’s focus on rural and semi-urban markets. They say slippages and credit costs should be under control as asset quality issues are now resolved.  They added, “Axis Bank remains focused on building a stronger, consistent, and sustainable franchise.” 

  1. JK Cement: Axis Direct maintains a ‘Buy’ call on this cement manufacturer with a target price of Rs 3,350. This indicates an upside of 13.5%. The cement company’s arm JK Paints and Coatings is set to acquire a 60% controlling stake in Acro Paints for Rs 153 crore. The remaining 40% will be acquired over 12 months. 

According to analysts Uttam Kumar Srimal and Shikha Doshi, Acro Paints has a wide product portfolio. They believe that the acquisition will provide an opportunity to foray into construction chemicals and waterproofing products, which have a current market size of Rs 5,000+ crore.

The company aims to achieve a turnover of Rs 400 crore in the next four years and will incur further capex to augment the paint business. Srimal and Doshi expect the paint business to complement and support the growth of the wall putty business as both wall putty and paint businesses have common attributes and influential networks. The analysts view JK Cement as a long-term prospect.

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

(You can find all analyst picks here)

 
Trendlyne Marketwatch
Trendlyne Marketwatch
02 Jan 2023
Market closes higher, metal stocks are rising in trade

Trendlyne Analysis

Indian indices closed in the green, with the Nifty 50 closing just below the 18,200 mark. European indices traded higher than Friday’s levels. Goods and Services Tax (GST) collections grew 15% to over Rs 1.49 lakh crore in December 2022, indicating improved manufacturing output and consumer demand, along with better compliance. India’s manufacturing PMI rose the most in two years to 57.8 in December 2022 compared to 55.7 in November 2022 due to new orders and output growth.

US stocks closed marginally lower on Friday, the last trading session of 2022. The tech-heavy Nasdaq 100 closed 0.1% lower while the Dow Jones fell 0.2%. US indices recorded their worst yearly fall since 2008 amid high inflation and the possibility of a recession induced by high Fed rate hikes. S&P 500 lost around 20% of its value in 2022 while the Nasdaq 100 fell around 30%. Crude oil prices rise over 2.7% on Friday after falling for two consecutive trading sessions.

Nifty Smallcap 100 and Nifty Midcap 100 closed in the green, following the benchmark index. Nifty Metal and Nifty Energy closed higher than Friday’s levels. Nifty IT closed higher, despite the tech-heavy Nasdaq 100 index closing flat on Friday.

Nifty 50closed at 18,197.45 (92.2, 0.5%), BSE Sensexclosed at 61,167.79 (327.1, 0.5%) while the broader Nifty 500closed at 15,523.65 (74.8, 0.5%)

Market breadth is highly positive. Of the 1,977 stocks traded today, 1,294 showed gains, and 625 showed losses.

  • Tata Steel sees a long buildup in its January 25 future series as its open interest rises 16.0% with a put-call ratio of 0.86.

  • TVS Motor Co is falling as its December 2022 wholesales decline 3.6% YoY due to a fall in motorcycle wholesales. Hero MotoCorp’s December 2022 wholesales also fall marginally by 0.1% YoY due to a 5.3% YoY fall in motorcycle wholesales. Both companies see a rise in scooter wholesales by 14% and 109% YoY respectively.

  • JMC Projects (India)rises and Kalpataru Power Transmissionhits an all-time highof Rs 592.5 per share as the companies fix January 11 as the record date to determine the shareholders to whom the shares of KPTL would be allotted.

  • The volume of transactions on India's digital payments platform, Unified Payments Interface (UPI), increases 71% YoY to 782 crore in December 2022. The value of transactions is up 55% YoY to Rs 12.8 lakh crore.

  • Sah Polymers’ Rs 66.3 crore IPO gets bids for 1.59X the available 56.1 lakh shares on offer on the second day of bidding. The retail investor quota gets bids for 5.3X the available 10.2 lakh shares on offer.

  • Blue Dart Express, Cera Sanitaryware, Persistent Systems and AstraZeneca Pharma India trade above their second resistance or R2 level as the markets trade higher.

  • Satia Industries is rising as it bags three orders to supply 17,000 tonnes of paper for Rs 200 crore. The contracts pertain to supplying paper for printing textbooks. The stock shows up in a screener for comapnies with increasing net profit sequentially for the past four quarters.

  • Bharat Forge is rising as its subsidiary, JS Auto Cast Foundry India, acquires a special economic zone (SEZ) unit in Erode from Indo Shell Mould. The SEZ unit has a capacity of 42,000 MTPA and supplies fully machined critical castings to customers in the automotive industry. This takes the company's total capacity to 1.4 lakh MTPA.

  • ICICI Securities downgrades its rating on Multi Commodity Exchange of India (MCX) to ‘Add’ from ‘Buy’ and reduces its target price to Rs 1,669 from Rs 1,795. This indicates an upside of 13.5%. The brokerage cites higher software costs and expensive valuations for revising its rating. However, it remains optimistic about the firm’s growth prospects due to MCX’s robust traction in options and dominant market share.

  • Capacit'e Infraprojects is rising as it receives an order worth Rs 203 crore from Ashar Ventures to construct a 60-storied tower in Thane. It features in a screener of stocks with improving cash flow and good durability.

  • Mahindra & Mahindra is rising as its December 2022 wholesales grow 45% YoY to 56,677 units, driven by a 62% YoY growth in sports utility vehicle wholesales. Maruti Suzuki’s December 2022 total wholesales fall 9% YoY to 1.39 lakh units due to a 21.2% YoY decline in mini & compact segment passenger vehicle wholesales.

  • Metal stocks like Steel Authority of India, Tata Steel, Jindal Steel & Power and National Aluminium are rising in trade. The broader sectoral index BSE Metal is also trading in the green.

  • Jefferies upgrades its rating on Tata Steel and Hindalco to a ‘Buy’ from ‘Hold’ and raises target prices to Rs 150 and Rs 600 respectively. The brokerage is positive on the Indian metal companies as Covid policies in China ease. This would increase the demand for metals globally. Meanwhile, it maintains its ‘Hold’ rating on Coal India and ‘Underperform’ on JSW Steel.

  • Indian Overseas Bank appoints Sanjay Vinayak Mudaliyar as Executive Director for a period of three years with effect from January 1.

  • Canara Bank's Managing Director and Chief Executive Officer LV Prabhakar retires from the post with effect from December 31, 2022.

  • India’s manufacturing PMI rises to 57.8 in December 2022, the highest in two years, due to growth in new orders and output. The PMI was 55.7 in November 2022.

  • Religare Enterprises is rising as its subsidiary, Religare Finvest, signs a settlement agreement with 16 of its outstanding lenders in accordance with the sanction letters received. The subsidiary will seek to exit from the corrective action plan (CAP) imposed by the Reserve Bank of India (RBI) and restart its lending business.

  • NCC is surging as it bags multiple orders worth Rs 3,601 crore from state government agencies in December 2022. The company wins two orders in the water and electrical segment and one in the irrigation division. It features in a screener of stocks with negative to positive growth in sales and profit with strong price momentum.

  • Investment Advisor Sandip Sabharwal expects domestically linked stocks in India to perform well during the first phase of 2023. He adds that capital expenditure continues to be the prominent theme for the year.

  • HG Infra Engineering wins a project from the Delhi Metro Rail Corp for the design and construction of elevated viaducts and stations for Rs 398.6 crore. The estimated time to complete the project is 24 months. The stock is trading near its 52-week high.

  • Adani Power extends the timeline to acquire thermal assets worth Rs 7,017 crore from DB Power till January 15.

  • Bandhan Bank transfers its group and technical write-off loans worth Rs 8,897 crore to an asset reconstruction company for a consideration amount of Rs 801 crore. The bank shows up in a screener of bearish stocks having medium to low Trendlyne scores.

Riding High:

Largecap and midcap gainers today include Steel Authority of India (SAIL) Ltd. (88.95, 7.62%), Power Finance Corporation Ltd. (149.70, 6.06%) and Tata Steel Ltd. (119.25, 5.86%).

Downers:

Largecap and midcap losers today include Adani Total Gas Ltd. (3,550.60, -3.85%), Dr. Lal Pathlabs Ltd. (2,200.15, -2.67%) and Bajaj Holdings & Investment Ltd. (5,607.15, -2.34%).

Volume Rockets

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

Top high volume gainers on BSE included NCC Ltd. (91.70, 9.30%), IRB Infrastructure Developers Ltd. (314.00, 7.96%) and Steel Authority of India (SAIL) Ltd. (88.95, 7.62%).

Top high volume losers on BSE were Multi Commodity Exchange of India Ltd. (1,457.70, -6.21%), 3M India Ltd. (21,535.00, -1.86%) and ICICI Securities Ltd. (494.75, -0.52%).

IFB Industries Ltd. (932.00, 3.36%) was trading at 33.9 times of weekly average. Bombay Burmah Trading Corporation Ltd. (935.00, 3.08%) and PNB Housing Finance Ltd. (573.15, 7.42%) were trading with volumes 4.7 and 4.2 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

12 stocks overperformed with 52-week highs, while 4 stocks hit their 52-week lows.

Stocks touching their year highs included - Canara Bank (336.15, 0.86%), Jindal Steel & Power Ltd. (594.65, 2.42%) and Power Finance Corporation Ltd. (149.70, 6.06%).

Stocks making new 52 weeks lows included - Aurobindo Pharma Ltd. (434.80, -0.80%) and Ipca Laboratories Ltd. (836.70, -0.76%).

19 stocks climbed above their 200 day SMA including Rain Industries Ltd. (178.85, 4.77%) and Shyam Metalics and Energy Ltd. (326.45, 4.10%). 6 stocks slipped below their 200 SMA including Bajaj Holdings & Investment Ltd. (5,607.15, -2.34%) and 3M India Ltd. (21,535.00, -1.86%).

 
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The Baseline
30 Dec 2022
Five Interesting Stocks Today

  1. Poonawalla Fincorp: This NBFC stock rose 11.9% over the past week till Thursday on the back of a healthy long-term business outlook. The Chairman of the firm, Adar Poonawalla, believes the NBFC is well-capitalised to grow its assets under management (AUM) to Rs 50,000 crore in the next five years, say reports. The company also sold its housing finance arm, Poonawalla Housing Finance, for Rs 3,900 crore. The management believes this transaction will improve the company’s efficiency as it will increase resource allocation and focus on core segments like retail and small business financing. The company has been deleveraging over the past few quarters, which enabled it to show up in a screener for companies with declining debt.

Last year, the company was rocked by serious allegations of insider trading. Its Managing Director, Abhay Bhutada, resigned in September 2021 after SEBI barred him from the equity markets for alleged insider trading activities. He was reinstated in February 2022 and SEBI revoked its order in June.

After acquiring Magma Group in May 2021, the promoters rejigged its operations and management. They also reduced the number of branches to 115 from 300. This led to the company tightening its underwriting framework and write-off policy. It also focused on increasing collections to improve asset quality. According to Motilal Oswal, these changes have led to an improvement in credit rating, thus allowing the NBFC to reprice its liabilities to lower rates and access diversified sources of debt. Over the past year, the firm’s cost of borrowing has fallen 190 bps, the brokerage added.

  1. Deepak Fertilisers & Petrochemicals: This commodity chemicals company fell 22.4% during the week ending December 23 as the Securities and Exchange Board of India (SEBI) imposed a fine of Rs 45 lakh on Naresh Ramniklal Mehta and his wife Pallavi Naresh Mehta for insider trading. Because of this sharp drop in share price, the company’s promoter entity, Robust Marketing Services, pledged 5.4 lakh shares (or 0.46% stake) to top up the pledged shares to Bajaj Finance. Currently, the company’s pledged shares stand at 27.7% and it features in a screener of stocks with high promoter stock pledges.

After the sharp fall in share price, the stock rose 1% on December 15 as its board of directors approved the demerger of its mining chemicals and fertilisers businesses of Smartchem Technologies into Deepak Mining Services and Mahadhan Farm Technologies. This will be followed by the amalgamation of Smartchem Technologies with Mahadhan Farm Technologies. In reaction, the stock has risen over 10% in the past week.

Sailesh C Mehta, Chairman & Managing Director of the company, had said, “The proposed corporate restructuring shall considerably help create strong independent business platforms within the larger DFPCL brand umbrella, hence enhancing stakeholders' value over time.” The company features in a screener of stocks with improving return on capital employed (RoCE) over the past two years.

  1. Suven Pharmaceuticals: This pharma company’s share price fell over 4.7% on Monday after private equity investor Advent International agreed to acquire a 50.1% stake in it for Rs 6,313 crore from the Jasti family, the promoters of Suven Pharma. But the deal did not excite investors as the stock fell after the analyst conference call. Reports suggest lack of clarity post-acquisition as one of the reasons for the share price fall. However, the share price has been on an uptrend since October and as a result, the company features in a screener of stocks with strong momentum with their prices above short-, medium- and long-term moving averages.

Advent has made an offer for an additional 26% of Suven’s shares from public shareholders to comply with Securities and Exchange Board of India’s (SEBI) takeover rules. The promoter stake sale and open offer are priced at Rs 495 per share.

Advent International has been on an acquisition spree in the Indian pharma space for the past couple of years, starting with the acquisition of RA Chem Pharma in October 2020. After the merger completion, Advent intends to explore the merger of its portfolio company, Cohance Lifesciences, with Suven Pharma to build an end-to-end CDMO (contract development and manufacturing organisation) and merchant API player servicing the pharma and specialty chemical markets. In H1FY23, Suven Pharma derived 52% of its revenue from the CDMO space and 44% from the specialty segment.

  1. Godrej Properties: This realty stock has been in the news almost every other week for buying large land parcels for housing projects. In December, the company bought nearly 103 acres of land in Gurugram and Mumbai. However, investors were not too enthused by these acquisitions and the stock went down 1% in the past week. The stock has been trading nearly 5% down over the month and shows up in a screener of stocks trading below their first support or S1 level.

So far in FY23, the company has acquired land with a revenue potential of Rs 16,500 crore. This is over and above its guidance of Rs 15,000 crore for FY23. The company’s Executive Chairman, Pirojsha Godrej, says that he is bullish on sales bookings and new land acquisitions, and plans to add more such acquisitions to the bucket by March 2023.

However, reports suggest that the pace of new launches has been slower in comparison to its peers, and these land acquisitions need to result in better sales or they may affect the debt levels of the company. Jefferies expects Godrej’s debt to be in the range of Rs 300-700 crore for FY23-25. In Q2FY23, Godrej’s net debt stands at Rs 1,365 crore, a rise of 42.8% QoQ. Also, rising interest rates and inflation can affect housing demand in future.

On the bright side, the company’s Kandivali land acquisition on December 2 shows its improving micro-market selection. The Kandivali project has a revenue potential of Rs 7,000 crore. Trendlyne’s Forecaster also expects Godrej Properties’ operating revenue to grow 37.6% in Q3FY23 from actual operating revenue in Q2FY23. In Q2, it missed the Forecaster estimate by 38.4%.

  1. Mahindra CIE Automotive: This auto parts & equipment stock touched an all-time high of Rs 347.7 on Thursday. The stock is outperforming its sector by 17.6% according to Trendlyne’s relative returns screener. In the past month, the stock rose 18% while rising more than 45.7% in the past six months. Trendlyne scores the company with a durability score of 80 and a momentum score of 70. Durability score indicates strong financials and momentum score talks about the bullish or bearish nature of the stock.

This comes after the company announced its plans to sell its forgings business in Germany (a wholly owned subsidiary) on December 14. The subsidiary contributed 10% to its consolidated sales but was a loss-making unit. It indicated the challenges faced by its German operations were due to geopolitical conflict and higher energy prices.

Analysts from ICICI Direct and Motilal Oswal retain their stance on the stock, as the company is making changes in its functioning, and cutting down on loss-making units to improve its profitability. ICICI Direct has increased its target price by 26% to Rs 410. Motilal Oswal also maintains a ‘Buy’ on the stock as it expects new order wins and the current order book will help the stock outperform the domestic auto industry by nearly 10%. The company has a new order pipeline for making certain EV components.

The company’s current shareholding shows that Mahindra & Mahindra’s stake has reduced to 9.3% from 11.4% earlier. It is no longer a promoter of the company. CIE has a 65.7% stake and is driving the company towards better operational efficiencies. The company overall plans to direct its capex towards India business. It shows up in a screener of companies with low debt.

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
30 Dec 2022
Market closes lower, Kalpataru Power Transmission wins multiple orders worth Rs 1,247 crore

Trendlyne Analysis

Indian indices fell from their day’s high and closed lower on the final trading session of the year. In 2022, the benchmark index Nifty 50closed around 4% higher. European stocks traded lower than Thursday’s levels. India's current account deficit widened in Q2FY23 to $ 36.4 billion (4.4% of GDP), up from $ 18.2 billion (2.2% of GDP) in Q1 as per RBI's balance of payments (BoP) data.

Most major Asian indices closed in the green, in line with the US indices, which also closed higher on Thursday. US stocks rose as an increase in jobless claims indicated some cooling in the economy, which could prompt the US Fed to rethink about the interest rate hikes going forward. The tech-heavy Nasdaq 100 rose 2.5% while the Dow Jones closed over 1% higher. Crude oil is set to post a weekly loss after posting a 6.7% rise in the previous week.

Nifty Midcap 100and Nifty Smallcap 100 closed in the green, despite the benchmark index closing in the red. Nifty Metal and Nifty Realty closed higher than Thursday’s levels. Nifty IT closed in the green, taking cues from the Nasdaq 100, which closed in the green on Thursday.

Nifty 50closed at 18,105.30 (-85.7, -0.5%), BSE Sensexclosed at 60,840.74 (-293.1, -0.5%) while the broader Nifty 500closed at 15,448.85 (-36.4, -0.2%)

Market breadth is in the green. Of the 1,942 stocks traded today, 1,224 were gainers and 667 were losers.

  • Money Flow Index (MFI) indicates that The Fertilisers and Chemicals Travancoreis in the overbought zone.

  • Kalpataru Power Transmission is rising as the company and its international subsidiaries win multiple orders worth Rs 1,247 crore. Manish Mohnot, Managing Director and Chief Executive Officer of the company, said, "We expect T&D ordering momentum to remain robust given the thrust on renewables and upgradation of T&D infrastructure in India and International markets."

  • Defence stocks like Bharat Electronics, Bharat Dynamicsand Hindustan Aeronauticsare rising in trade. All constituents of the broader defence industryare also trading in the green.

  • Sah Polymers’ Rs 66.3 crore IPO gets bids for 86% of the available 56.1 lakh shares on offer on the first day of bidding. The retail investor quota gets bids for 2.07X the available 10.2 lakh shares on offer. The IPO is entirely a fresh issue of Rs 66.3 crore.

  • RBI's December edition of the Financial Stability Report says that the gross NPA of banks fell to a 7-year low of 5% in September 2022. It expects the capital adequacy ratio to fall to 14.9% in September 2023.

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

  • RBL Bank touches a 52-week high of Rs 180.4 and continues to rise in trade today. It shows up in a screener of stocks with the highest recovery from a 52-week low. The stock has a high valuation and momentum score above 70.

  • Fertilizersindustry rises more than 13% in the past month, while edible oils and other non-ferrous metals industries grow more than 7%.

  • Elin Electonics’ shares list at a discount of 1.2% to the issue price of Rs 247 on its debut on the bourses. The Rs 475 crore IPO was subscribed for 3.1X the total shares on offer.

  • Ajay Singh Bhutoria, Chief Executive Officer and Managing Director at Zensar Technologies, resigns due to personal reasons. His resignation is effective from December 31, 2022.

  • Craftsman Automation is surging as it enters an agreement to acquire 8.6 crore shares (or 76% stake) in DR Axion India for Rs 375 crore. The company features in a screener of stocks with improving return on equity (RoE) over the past two years.

  • Cipla's arm Cipla EU agrees to invest 15 million euros in Ethris to facilitate a strategic partnership for the development of messenger RNA-based therapies.

  • Mahesh Nandurkar, Head of Research and MD at Jefferies India, says that FIIs and domestic investors are bullish on banks. He adds that rising interest rates caused worries in 2022.

  • According to Trendlyne's FII dashboard, foreign institutional investors pull out a total of Rs 907.2 crore from the equity market over the past week. However, index options receive the highest inflow of Rs 3,965.9 crore from foreign investors.

  • Reliance Ventures’ subsidiary Reliance Consumer Products agrees to buy a 51% stake in Lotus Chocolate Co for Rs 74 crore. It will also make an open offer to buy a 26% stake to gather capital for the growth and expansion of Lotus Chocolate Co.

  • India’s current account deficit stands at $36.4 billion (4.4% of the GDP) during Q2FY23, a sharp rise from $18.2 billion in Q1.

  • HG Infra Engineering is up 4% after it wins an order from the National Highway Authority of India for the construction of a 6-lane ring road in Haryana. The estimated cost of the project is Rs 743.7 crore.

  • Skipper wins new order worth Rs 2,570 crore from BSNL for supply and erection of ground-based telecom towers, infrastructure as a service provider for supply, installation of infrastructure items, and subsequent operations and maintenance for five years in the uncovered villages of India under 4G saturation projects.

  • Sah Polymers raises Rs 30 crore from anchor investors ahead of its IPO by allotting 45.9 lakh shares at Rs 65 per equity share. Only three investors invested in the company—Leading Light Fund VCC, Saint Capital Fund, and Maven India Fund.

  • Eicher Motorsis set to acquire a 10.35% stake in Spain-based electric motorcycle manufacturer Stark Future for 50 million euros (Rs 441.7 crore). The company believes the investment will enable long-term collaborative opportunities in developing and manufacturing electric motorcycles.

Riding High:

Largecap and midcap gainers today include General Insurance Corporation of India (178.75, 6.43%), Shriram Finance Ltd. (1,376.90, 4.93%) and Canara Bank (333.30, 3.78%).

Downers:

Largecap and midcap losers today include Max Healthcare Institute Ltd. (439.55, -3.24%), Adani Transmission Ltd. (2,589.25, -3.01%) and Adani Total Gas Ltd. (3,692.85, -2.64%).

Volume Shockers

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

Top high volume gainers on BSE included Hikal Ltd. (410.10, 12.00%), The New India Assurance Company Ltd. (125.75, 9.02%) and Eureka Forbes Ltd. (482.80, 8.37%).

Top high volume losers on BSE were Procter & Gamble Health Ltd. (3,953.00, -4.56%), Cholamandalam Financial Holdings Ltd. (550.55, -2.16%) and Nesco Ltd. (611.00, -0.07%).

Gujarat Pipavav Port Ltd. (100.65, 7.59%) was trading at 27.8 times of weekly average. Eris Lifesciences Ltd. (648.00, 1.51%) and Metro Brands Ltd. (883.50, 2.97%) were trading with volumes 10.6 and 7.7 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 2 stocks tanked below their 52-week lows.

Stocks touching their year highs included - Canara Bank (333.30, 3.78%), Gujarat Pipavav Port Ltd. (100.65, 7.59%) and REC Ltd. (116.50, 2.33%).

Stocks making new 52 weeks lows included - Cholamandalam Financial Holdings Ltd. (550.55, -2.16%) and Procter & Gamble Health Ltd. (3,953.00, -4.56%).

20 stocks climbed above their 200 day SMA including KNR Constructions Ltd. (254.85, 2.85%) and VST Industries Ltd. (3,315.95, 2.78%). 3 stocks slipped below their 200 SMA including Aptus Value Housing Finance India Ltd. (303.80, -3.06%) and Marico Ltd. (509.85, -1.08%).

 
Trendlyne Marketwatch
Trendlyne Marketwatch
29 Dec 2022
Market closes higher, JSW Energy acquires 95% stake in Ind-Barath Energy for Rs 1,047.6 crore

Trendlyne Analysis

Indian indices closed in the green with the Nifty 50 closing just below the 18,200 mark. European stocks followed the global trend and traded lower than Wednesday’s levels. Asian indices closed in the red, in line with the US indices, which closed lower on Wednesday. The S&P 500 is set to post its biggest yearly fall since 2008. US stocks fell on Wednesday as investors remain concerned about the possibility of a recession in 2023 due to continued US Fed rate hikes. The tech-heavy Nasdaq 100 index fell over 1.3% while the Dow Jones closed 1.1% lower. Brent crude oil futures traded lower after falling over 1.4% on Wednesday.

Nifty Smallcap 100 closed in the green, following the benchmark index. Nifty Metal and Nifty Bankclosed higher than Wednesday’s levels. Nifty IT closed in the green.

Nifty 50closed at 18,191.00 (68.5, 0.4%), BSE Sensexclosed at 61,133.88 (223.6, 0.4%) while the broader Nifty 500closed at 15,485.20 (52.4, 0.3%)

Market breadth is balanced. Of the 1,943 stocks traded today, 980 were gainers and 896 were losers.

  • Relative strength index(RSI) indicates that The Fertilisers and Chemicals Travancoreis in the overbought zone.

  • Sah Polymers, a manufacturer of plastic packaging products, opens for IPO subscription tomorrow. The size of the issue is Rs 66.3 crore, comprising entirely of a fresh issue. The price band is Rs 61-65 per share.

  • Motilal Oswal maintains ‘Buy’ on Axis Bank. Expects the bank’s loans to grow by 14-18%. It also expects an improvement in RoE and opex ratios.

  • Jindal Stainlessrises 4% in a weak market, touching a 52-week high of Rs 242.5. The stock shows up in a screener with consistent returns over the past five years. It ranks high in the Trendlyne checklist score.

  • The Fertilisers and Chemicals Travancore and Kalyan Jewellers India hit their all-time highs of Rs 355.7 and Rs 134.2 respectively. Both stocks rise for four consecutive sessions.

  • Transformers & Rectifiers (India) is rising as it bags orders for transformers worth Rs 123 crore. The company’s total order book now stands at Rs 1,513 crore. The stock shows up in a screener for companies with high TTM EPS growth.

  • Tata Consumer Products’ step-down subsidiary decides to buy a 23.3% stake in Joekels Tea Packers from Joekels joint venture partners. This will increase the subsidiary’s holding in Joekels to 75% from 51.7%. The cost of this transaction is Rs 43.65 crore.

  • Aman Desai, Founder & Director of Aether Industries, says global demand and supply chains are recovering to normal levels. The company adds 11 customers in Q2FY23 and plans to keep research & development (R&D) expenses between 6-8%.

  • GMM Pfaudler, Easy Trip Planners and Brightcom Group fall more than 19% in a month, underperforming General Industrials and Software & Services sectors.

  • Tata Power’s arm Tata Power Renewable Energy bags an order from Tata Power Delhi Distribution. The order pertains to setting up a 255 MW hybrid (wind and solar) power project in Karnataka. With this, its total renewables capacity reaches 6,048 MW.

  • ICICI Securities maintains its ‘Buy’ rating on Prince Pipes and Fittings with a target price of Rs 691, indicating an upside of 19.1%. The brokerage expects strong sales volume growth in H2FY23 due to demand growth led by declining polyvinyl chloride (PVC) prices. It also sees margins improving in the near term due to high inventory costs falling from Q4 onwards. The brokerage estimates the firm’s net profit to grow at a CAGR of 45.6% over FY23-25.

  • Realty stocks like Godrej Properties, DLF and Macrotech Developers are falling in trade as the government hikes land compensation for farmers to Rs 5,324 per square metre. The broader BSE Realty index is also trading in the red.

  • Spandana Sphoorty rises and hits upper circuit after its board approved the transfer of its stressed loan portfolio, including written-off loans amounting to Rs 323.1 crore to an asset reconstruction company for Rs 95 crore. The company shows up in a screener for stocks with improving book value per share over the past two years.

  • JSW Energy acquires 95% equity shares of 700 MW Ind-Barath Energy for Rs 1,047.6 crore through the corporate insolvency resolution process.

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

  • Ashoka Buildcon rises as it bags three projects worth Rs 754.6 crore from Madhya Pradesh Poorv Kshetra Vidyut Vitaran Co. The orders involve the installation of transmission lines in Madhya Pradesh. The company shows up in a screener for stocks in the PE Buy zone with a good durability score and rising momentum.

  • Rishi Vora, VP at Kotak Securities, says that growth for the auto sector will moderate in FY24. He adds that emission and safety norms will increase the cost of vehicles, and the pent-up demand is likely to wane. He also expects demand for passenger vehicles to moderate in FY24.

  • Rising Sun Holdings, promoter of Poonawalla Fincorp, buys a 0.57% stake in the company for approx Rs 124.9 crore on Wednesday.

  • KFin Technologies’ shares list at a marginal premium of 0.3% to the issue price of Rs 366 on its debut on the bourses. The Rs 1,500 crore IPO was subscribed for 2.6X the total shares on offer.

  • Promoter Rishab Family Trust sells 4.9 lakh shares more (0.03% stake) in Bajaj Finserv for Rs 75.3 crore in a block deal on Wednesday.

  • Godrej Properties acquires 9 acres of land in Gurugram for the development of premium residential projects. The estimated revenue potential from this project is Rs 2,500 crore. The company shows up in a screener of stocks with zero promoter pledges.

Riding High:

Largecap and midcap gainers today include Adani Total Gas Ltd. (3,793.00, 5.19%), FSN E-Commerce Ventures Ltd. (158.10, 4.88%) and Adani Wilmar Ltd. (605.20, 4.65%).

Downers:

Largecap and midcap losers today include Shriram Finance Ltd. (1,312.25, -5.50%), Shree Cements Ltd. (23,256.75, -4.23%) and Page Industries Ltd. (43,264.35, -2.97%).

Volume Shockers

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

Top high volume gainers on BSE included Jindal Stainless (Hisar) Ltd. (426.05, 7.44%), Aptus Value Housing Finance India Ltd. (313.40, 6.96%) and KEC International Ltd. (504.75, 6.12%).

Top high volume losers on BSE were Shriram Finance Ltd. (1,312.25, -5.50%), Shree Cements Ltd. (23,256.75, -4.23%) and Medplus Health Services Ltd. (623.30, -2.05%).

Crisil Ltd. (2,996.75, 4.95%) was trading at 9.7 times of weekly average. Bajaj Auto Ltd. (3,568.80, -0.50%) and Jindal Stainless Ltd. (226.30, 3.22%) were trading with volumes 4.9 and 4.5 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

7 stocks took off, crossing 52-week highs, while 4 stocks hit their 52-week lows.

Stocks touching their year highs included - Jindal Steel & Power Ltd. (589.35, 1.93%), RBL Bank Ltd. (176.50, 1.99%) and Jindal Stainless Ltd. (226.30, 3.22%).

Stocks making new 52 weeks lows included - Cholamandalam Financial Holdings Ltd. (566.00, 0.00%) and Gland Pharma Ltd. (1,578.30, 0.31%).

10 stocks climbed above their 200 day SMA including Aptus Value Housing Finance India Ltd. (313.40, 6.96%) and Avenue Supermarts Ltd. (4,178.30, 4.00%). 20 stocks slipped below their 200 SMA including Shyam Metalics and Energy Ltd. (306.20, -2.27%) and KNR Constructions Ltd. (247.80, -1.37%).

 
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The Baseline
29 Dec 2022
Screener of the week: Top-performing stocks over the past year with high durability score
By Abdullah Shah

As 2022 comes to an end, we look at financially stocks that gained the most in the year. We use this screener (this is a subscriber screener - get access to this and 500+ others with new year discounts now live on plans).

The screener finds stocks that have 1) risen over the past year 2) have good Trendlyne durability scores and 3) have high analyst estimates for one-year forward annual revenue growth.

The screener lists 41 stocks from the Nifty 500 and four from the Nifty 50 index. Major industries in the screener are banks, non-alcoholic beverages, shipping, hotels, and two and three-wheelers. The most notable stocks in the screener are Varun Beverages, Karur Vysya Bank, Great Eastern Shipping, Indian Hotels, Solar Industries India and TVS Motor. 

Share prices of Karur Vysya Bank and Varun Beverages have increased 140%, the highest among the Nifty 500 stocks in 2022. Karur Vysya Bank’s forecaster estimate for annual revenue growth is at 28.4% YoY, while Varun Beverages is at 46.8% YoY.

Varun Beverages, the Pepsico franchisee, is planning to focus on the non-beverages segment in the international market. It intends to begin distribution of Lays, Doritos and Cheetos from January 2023 in Morocco. Karur Vysya Bank and Varun Beverages have high Trendlyne durability scores of 60 and 70 respectively.

Great Eastern Shipping’s share price has also risen 125%. The shipping company’s forecaster estimate for annual revenue growth is impressive, at 68.9% YoY. According to Ventura, the company will benefit from operating leverage from the rise in freight rates, and from the appreciation in the value of its fleet. 

You can find more screeners here.