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The Baseline
24 Jan 2023
Five analyst picks this week in the tech sector
By Abhiraj Panchal
  2. Cyient: IDBI Capital maintains its ‘Buy’ rating on this IT Consulting & Software company with a target price of Rs 1,045. This implies an upside of 19.6%. In Q3FY23, the firm’s net profit surged 97.2% QoQ to Rs 156 crore and revenue grew 15.9% QoQ.

Analysts Devang Bhatt and Dhawal Doshi expect the services segment’s revenue to grow 25% YoY in FY23 on the back of organic and inorganic levers. They anticipate “it to be driven by double-digit growth in aerospace, communication, medical, mining, automotive and healthcare business verticals”. The analysts also expect the firm’s cost realisation initiatives to expand margins further in the coming quarters.

However, Bhatt and Doshi believe Cyient’s margin in FY23 will be impacted by the one-offs in litigation and acquisition-related charges. But they expect the margins in FY24 and FY25 to improve due to the absence of one-off costs and easing of supply-side challenges. The analysts anticipate the IT firm’s revenue to grow at a CAGR of 19.9% over FY22-25.

  1. Wipro: ICICI Direct upgrades its rating to a ‘Buy’ from ‘Hold on this software services company with a target price of Rs 455. This indicates an upside of 12.9%. In Q3FY23, the company reported a 14.8% QoQ growth in net profit to Rs 3,052.9 crore, while its revenue grew by 3.6% QoQ to Rs 23,867.3 crore. According to analysts Sameer Pardikar and Sujay Chavan, “Wipro reported weak Q3 results on the revenue front.”

The total contract value for the quarter was $4.3 billion. The analysts think that sustainability of the same in the subsequent quarters will likely provide revenue visibility for FY24. They also believe that Wipro’s decision to change leadership in areas of America, West Asia, Japan and Australia will provide a stimulus to revenue growth in the regions. Pardikar and Chavan remain optimistic about the stock on the back of higher penetration in Europe, client mining and acquisition of new logos.

  1. Infosys: HDFC Securities maintains a ‘Buy’ call on this big-4 IT company with a target price of Rs 1,815, indicating an upside of 18.9%. In Q3FY23, Infosys’ profit grew by 9.4% QoQ to Rs 6,586 crore and its revenue increased by 5.3% to Rs 39,087 crore. Analysts Apurva Prasad, Amit Chandra and Vinesh Vala said that revenue growth was ahead of consensus, supported by higher pass-through revenue, which was linked to integrated deals. The IT company has increased its revenue guidance for Q4FY23 to 16-16.5%. 

The total contract value for Q3FY23 was $3.3 billion. The analysts are also positive about the company as they expect a recovery in North America and strong traction in the energy & utilities, and manufacturing verticals. Out of the 32 large deals that Infosys won, 25 were from North America. “Acceleration in vendor consolidation and cost take-out deals has led to  growth in its core services (vs historical decline),” they added.

  1. Just Dial: ICICI Securities maintains its ‘Buy’ rating on this internet technology company with a target price of Rs 750. This indicates an upside of 14.2%. In Q3FY23, the firm’s net profit grew 44.4% QoQ to Rs 75.3 crore, and revenue rose by 7.9% QoQ.

Analysts Abhisek Banerjee and Heenal Gada believe the stock is trading at an attractive valuation after falling nearly 34% over the past year. They believe this correction in price is an overreaction and are positive on the company as it has beaten their EBIT margin estimates in Q3. Its margin expanded by 400 bps QoQ to 12.3%, beating the analysts’ estimate of 9.4%.

Banerjee and Gada believe the sustained and sequential improvement in collections indicates an improvement in demand for the firm’s services. They add, “Just Dial has ~26% revenue exposure to the B2B e-commerce segment. We believe this is likely to be the primary growth driver for the company going forward.” The analysts expect the company’s net profit to grow at a CAGR of 100.8% over FY23-25. However, the company’s Trendlyne Durability Score is 45, indicating average financial health - the company has negative net cash flow and weak ROE. 

  1. HCL Technologies: Motilal Oswal reiterates its ‘Buy’ rating on this technology company with a target price of Rs 1,270, indicating an upside of 14.6%. For Q3FY23, the company reported a profit of Rs 4,096 crore, a 17.4% QoQ increase, and revenue of Rs 26,960 crore (in line with the brokerage’s estimate), an 8.2% QoQ rise. Analysts Mukul Garg, Prakash Bhanushali and Pritesh Thakkar said, “Strong revenue growth guidance of 16-16.5% YoY in CC terms for services should address investor concerns on the company’s growth.”

“Despite seasonality and a tough demand environment, HCL maintained its growth momentum in both IT Services, and engineering research and development verticals,” the analysts added. They believe higher exposure to cloud offers a better resilience to its portfolio in the current context, with higher demand for cloud, network, security, and digital workplace services.

Remaining optimistic, analysts said, “Strong sequential growth within services, robust headcount addition, healthy deal wins, and a solid pipeline indicate an improved outlook.” 

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

(You can find all analyst picks here)

 
Trendlyne Marketwatch
Trendlyne Marketwatch
24 Jan 2023
Market closes flat, Maruti Suzuki's Q3FY23 net profit jumps 2.3X YoY to Rs 2,391.5 crore

Trendlyne Analysis

Indian indices fell from their day’s high and closed flat on a volatile day of trade. European stocks traded higher than Monday’s levels. Australia’s ASX All Ordinaries and Japan’s Nikkei 225 indices closed in the green, taking cues from the US indices, which closed in the green on Monday. US stocks rose as investors looked ahead to Q3FY23 earnings from major companies this week. The tech-heavy Nasdaq 100 rose 2.2% while the Dow Jones closed 0.8% higher on Monday. Several Asian markets remain closed for Lunar New Year celebrations. Brent crude oil futures traded in the green for a fourth straight trading session.

Nifty Smallcap 100 and Nifty Midcap 100 closed in the red, despite the benchmark index closing in the red. Nifty Energy and Nifty Metal trade lower than Monday’s closing levels. Nifty IT trades in the green, taking cues from the tech-heavy Nasdaq 100, which closed 2.2% higher on Monday.

Nifty 50 closed at 18,118.30 (-0.3, 0%) , BSE Sensex closed at 60,978.75 (37.1, 0.1%) while the broader Nifty 500 closed at 15,388.55 (-14.7, -0.1%)

Market breadth is in the red. Of the 1,953 stocks traded today, 700 were gainers and 1,176 were losers.

  • Relative strength index (RSI) indicates that stocks like Max Financial Services, Oil India, Persistent Systems, Coforge and GAIL (India) are in the overbought zone.

  • Colgate-Palmolive’s Q3FY23 net profit falls 3.6% YoY as the cost of materials increases 9.4% YoY. The company’s total sales have grown marginally by 0.8% YoY in Q3, despite domestic sales growing 2.3% YoY. It ranks high on the Trendlyne Checklist score.

  • Maruti Suzuki is rising as its Q3FY23 net profit jumps 2.3X YoY to Rs 2,391.5 crore on the back of robust demand, softening commodity prices and cost reduction initiatives. Revenue rises 25% YoY as sales volume increases by 8.2% YoY. This stock shows up in a screener for companies with high TTM EPS growth.

  • Easy Trip Planners’ board approves the acquisition of a 55% stake in Glegoo Innovations Private, an online travel company. Glegoo will use its app to connect travellers and hoteliers in real time, helping it increase its user base. Easy Trip Planners shows up in a screener of stocks with improving RoE for the past two years.

  • Pharmaceuticals & Healthcare stocks like Syngene International, Zydus Lifesciences, Aurobindo Pharma, Gland Pharma and Alkem Laboratories are falling in trade. All constituents of the broader sectoral Nifty Healthcare Index are also trading in the red.

  • The PLI Scheme under the Centre’s 'Atmanirbhar Bharat' covers 14 sectors with an outlay of approximately Rs 1.9 lakh crore over the past six years. The beneficiary sectors include pharma, IT hardware, textiles and auto & components.

  • Asahi India Glass, Patanjali Foods and Tata Motors’ delivery volumes rise ahead of their results on January 25.

  • Nifty 50 was trading at 18,121.90 (3.4, 0.0%) , BSE Sensex was trading at 61,024.23 (82.6, 0.1%) while the broader Nifty 500 was trading at 15,399.25 (-4.0, 0.0%)

  • Market breadth is in the red. Of the 1,945 stocks traded today, 779 were on the uptick, and 1,079 were down.

  • KRChoksey maintains its ‘Buy’ rating on Happiest Minds with a target price of Rs 1,158. This implies an upside of 32.4%. The brokerage expects the company’s robust deal momentum, client-centric approach and increasing focus on its digital business to drive growth in the near term. It estimates the firm’s revenue to grow at a 14.9% CAGR over FY22-24.

  • Foreign institutional investors pull out Rs 16,437.1 crore from the equity market over the past 30 days, according to Trendlyne's FII dashboard. Meanwhile, index options receive the highest inflow of Rs 78,433.1 crore from foreign investors. Mutual funds invest Rs 757.8 crore in the equity market.

  • Puneet Chhatwal, Managing Director and CEO of Indian Hotels Co, says that the hospitality sector’s expectations from the Union Budget 2023 are based on three key themes – growth stimulation, support in infrastructure growth and boost for tourism.

  • Delhivery partners with Godrej Appliances to build and manage the supply chain of Godrej’s coolers business pan-India. Delhivery plans to deploy warehouses and a distribution network for better penetration of Godrej’s products. Delhivery is trading near its 52-week low.

  • Torrent Pharmaceuticals gets an intimation from the US FDA classifying its inspection as Official Action Indicated (OAI) for its manufacturing facility in Gujarat. The facility had previously received Form 483 with three observations from the agency.

  • Jammu & Kashmir Bank is rising as its Q3FY23 net profit grows 79% YoY to Rs 311.6 crore and net interest income rises 27% YoY. Meanwhile, Karur Vysya Bank falls as its provisions surge more than 2X YoY despite its net profit growing 56% YoY to Rs 289.3 crore.

  • Gland Pharma touches an all-time low of Rs 1,308.3 as it reports a fall in Q3FY23 net profit by 15% YoY to Rs 231.9 crore. Revenue also declines 12% YoY due to an increase in lead time of processing and low off-take of key products in the US in Q1FY23. It shows up in a screener of stocks with the highest fall from their 52-week highs.

  • FSN E-Commerce (Nykaa) is rising as 53.6 lakh shares (0.2% equity) amounting to Rs 68 crore change hands in a large trade.

  • Welspun Corp is rising as its associate company, East Pipes Integrated Co, bags contracts worth 569 million Saudi riyals (Rs 1,234 crore) in Saudi Arabia. The contracts pertain to the supply of steel pipes for water transmission. The stock shows up in a screener for companies with low debt.

  • Dilip Buildcon’s wholly-owned subsidiary Dilip Buildcon – Skyway Infraprojects emerges as the lowest bidder for the Madhya Pradesh Jal Nigam tender. The subsidiary bags an order for the engineering, procurement, construction, testing and trial run of Rewa Bansagar. The project cost is estimated at Rs 1,947.1 crore.

  • NBCC is rising as it reports its monthly business update for December 2022. The company acquires a total business of Rs 309.1 crore. The stock is trading above its first resistance or R1 level.

  • K Satyanarayana Raju, Executive Director of Canara Bank, says the bank’s credit cost is at 1.2% for FY23 and will be 1.2-1.25% for FY24. He adds that the net interest margin for FY24 will be 3%. The bank reports a net profit of Rs 2,881.5 crore in Q3FY23.

  • Tata Communication is falling as its Q3FY23 net profit marginally declines by 0.3% YoY to Rs 393.9 crore due to higher network & transmission and employee benefits expenses. Revenue rises 8.2% YoY, led by robust growth in the data services business segment.

  • KEI Industries is rising as its Q3FY23 net profit increases 27% YoY to Rs 128.6 crore. Revenue is up 14% on the back of rise in revenue in the cables segment. However, other segments like stainless steel wire and EPC projects see a fall in revenue by more than 8% YoY in Q3. The stock ranks high on the Trendlyne Checklist score.

  • Axis Bank’s Q3FY23 net profit surges 61.9% YoY to Rs 5,853.1 crore as net interest income rises 32% YoY. Its net interest margin expands by 73 bps YoY, and revenue grows by 28.8% YoY on the back of market share gains made in the rural and small & medium enterprises segments. The stock shows up in a screener for companies with revenue increasing sequentially for the past eight quarters.

Riding High:

Largecap and midcap gainers today include FSN E-Commerce Ventures Ltd. (134.35, 7.70%), Adani Wilmar Ltd. (572.65, 4.90%) and General Insurance Corporation of India (184.20, 4.36%).

Downers:

Largecap and midcap losers today include Tata Communications Ltd. (1,324.60, -4.27%), Syngene International Ltd. (581.05, -3.99%) and Delhivery Ltd. (312.35, -3.82%).

Movers and Shakers

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

Top high volume gainers on BSE included Route Mobile Ltd. (1,229.75, 7.67%), Happiest Minds Technologies Ltd. (876.70, 6.22%) and Sonata Software Ltd. (624.20, 5.24%).

Top high volume losers on BSE were SBI Cards and Payment Services Ltd. (745.00, -2.89%), Medplus Health Services Ltd. (616.00, -2.43%) and Axis Bank Ltd. (910.20, -2.41%).

Chalet Hotels Ltd. (357.10, 4.42%) was trading at 13.2 times of weekly average. Zensar Technologies Ltd. (228.00, 2.98%) and Eureka Forbes Ltd. (519.05, 0.21%) were trading with volumes 9.1 and 6.3 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

2 stocks hit their 52 week highs, while 13 stocks were underachievers and hit their 52 week lows.

Stocks touching their year highs included - 360 One Wam Ltd. (1,947.85, -0.12%) and Lloyds Metals & Energy Ltd. (282.95, -2.40%).

Stocks making new 52 weeks lows included - Indus Towers Ltd. (170.45, -1.42%) and GlaxoSmithKline Pharmaceuticals Ltd. (1,271.25, -0.50%).

9 stocks climbed above their 200 day SMA including Maruti Suzuki India Ltd. (8,698.80, 3.35%) and Tata Motors Limited (DVR) (217.35, 2.57%). 18 stocks slipped below their 200 SMA including Syngene International Ltd. (581.05, -3.99%) and Balrampur Chini Mills Ltd. (373.60, -3.38%).

 
Trendlyne Marketwatch
Trendlyne Marketwatch
23 Jan 2023
Market closes higher, Edelweiss maintains ‘Buy’ rating on ICICI Bank

Trendlyne Analysis

Nifty 50 closed in the green, rising above the 18,100 level. European indices traded in the green amid positive global cues. Chinese and Taiwanese markets are closed on account of the Lunar new year for the current week. Other major Asian indices closed higher, in line with US indices, which closed in the green on Friday. The S&P 500 rose 1.9%, while the Dow Jones closed 1% higher on Friday. The rally was backed by Fed Governor Christopher Waller’s comment stating central banks' rates are pretty close to sufficiently restricting inflation. The tech-heavy Nasdaq 100 index rose 2.7% backed by gains in Netflix and Alphabet. Crude oil prices traded higher after posting a second straight weekly advance last week as China's outlook brightens amid the reopening of its economy.

Nifty Smallcap 100 closed in the green, following the benchmark index. Nifty Media and Nifty Bank closed higher than Friday’s levels. Nifty IT closed higher, taking cues from the tech-heavy Nasdaq 100, which closed in the green on Friday.

Nifty 50 closed at 18,118.55 (90.9, 0.5%) , BSE Sensex closed at 60,941.67 (319.9, 0.5%) while the broader Nifty 500 closed at 15,403.20 (55.3, 0.4%)

Market breadth is in the red. Of the 1,993 stocks traded today, 801 were on the uptrend, and 1,126 went down.

  • Money flow index (MFI) indicates that stocks like CG Power and Industrial Solutions, Hindustan Copper, Max Financial Services and Oil India are in the overbought zone.

  • Indian market trades in the red, underperforming global indices like Dow Jones, S&P 500 and Nasdaq in January.

  • Torrent Power rises over 6% in trade and is one of the high-volume, high-gainer stocks today. The stock ranks high on Trendlyne’s checklist, scoring 56.52%. It features in a screener of companies with improving net cash flow over the past two years.

  • Latent View Analytics, UCO Bank and Sonata Software rise 4.4%, 1.3% and 1.2% respectively over the past week, ahead of their Q3FY23 results tomorrow.

  • IDFC First Bank is rising as its Q3FY23 net profit surges more than 2X YoY to Rs 604.6 crore and net interest income rises 27% YoY. Meanwhile, YES Bank falls as its Q3FY23 net profit declines 80.7% YoY to Rs 51.5 crore and provisions surge more than 2X YoY.

  • Seshsagiri Rao, Joint Managing Director and Group CFO of JSW Steel, says domestic steel prices could increase further. He expects an improvement in export volumes in Q4FY23. The company announced its Q3 results on Friday.

  • Adani Green Energy's operational capacity increases by 35% YoY to 7,324 MW in 9MFY23. Its sale of energy grows by 59% YoY to 10,235 million units as the company adds new solar and wind power plants in Rajasthan and Madhya Pradesh. The company features in a screener of stocks with increasing annual net profit for the past two years.

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

  • Edelweiss maintains its ‘Buy’ rating on ICICI Bank with a target price of Rs 1,135. This implies an upside of 30.1%. The brokerage remains positive about the bank’s prospects on the back of its sustained growth outperformance, digital push, risk management and strong balance sheet. It expects the company’s revenue to grow at a CAGR of 17.1% over FY22-25.

  • Cement stocks like UltraTech Cement, Grasim Industries, Ambuja Cements, Shree Cements and ACC are trading in the red. The broader cement & cement products industry falls over 2.5% today.

  • Meghamani Organics is falling as it reports a decrease in net profit by 74% YoY in Q3FY23. The company’s revenue and EBITDA decline 13% and 21% respectively. In addition, it announces the commissioning of Phase 1 of the Titanium Dioxide (TiO2) plant at Dahej, Gujarat, with an installed capacity of 16,500 MTPA.

  • Ultratech Cement is falling as its Q3FY23 net profit declines 38% YoY to Rs 1,058.2 crore. EBITDA margin falls 400 bps YoY to 15% due to a rise in the cost of raw materials, fuel and freight expenses. The company features in a screener of stocks with declining revenue for the past two consecutive quarters.

  • JSW Steel turns profitable with a net profit of Rs 474 crore in Q3FY23, after posting a loss in Q2FY23. A 98.8% QoQ drop in cost of raw materials aids the EBIDTA margin to improve 7.4 percentage points QoQ to 11.6%. The company features in a screener of stocks with growth in net profit and profit margin (QoQ).

  • Chandra Shekhar Ghosh, Managing Director and CEO of Bandhan Bank, expects loan growth CAGR of 22-25% over the next few years. He adds that the pandemic has impacted the bank’s NIM (net interest margin) and it will normalise at 7.5% and above.

  • Radhakishan Damani cuts his stake in Metropolis Healthcare in Q3FY23 and now holds a stake below 1%.

  • Sunil Singhania buys a 0.3% stake in Mastek in Q3FY23, now holds 3.1% in the company.

  • SBI Life Insurance’s Q3FY23 net profit falls 16.4% YoY to Rs 364.06 crore. Even though net premium income rises 6.35% YoY, it falls for products across the participating segment. The non-participating segment sees an increase in net premium, with individual life growing more than 50%. The company ranks medium on the Trendlyne Checklist score.

  • Indian rupee appreciates to 80.94 from Friday’s close of 81.12 against the US dollar in early trade today.

  • Tanla Platforms falls more than 3% in trade today. The company ranks low in the Trendlyne Checklist score. It shows up in a screener of stocks with no debt.

  • Reliance Industries is falling as its Q3FY23 net profit dips 14.9% YoY to Rs 15,792 crore because of an increase in the cost of materials by 8.1% YoY. However, revenue rises 15.3% YoY in Q3, with growth in revenue across all segments like oil to chemicals, oil & gas, retail and digital services. The company shows up in a screener of stocks with declining quarterly profit margin YoY.

  • ICICI Bank’s Q3FY23 net profit rises 34% YoY to Rs 8,311.8 crore with net interest income increasing 34.6% YoY. However, the bank’s net provisions grow 12.5% YoY, as it adopts a more conservative approach for future contingencies. The bank also sees growth in retail, business banking and SME loans by more than 20% YoY in Q3.

Riding High:

Largecap and midcap gainers today include Torrent Power Ltd. (491.00, 6.74%), Coforge Ltd. (4,358.90, 6.26%) and Persistent Systems Ltd. (4,593.15, 6.24%).

Downers:

Largecap and midcap losers today include YES Bank Ltd. (18.15, -8.10%), JSW Energy Ltd. (246.85, -5.91%) and Shree Cements Ltd. (23,037.05, -5.67%).

Volume Shockers

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

Top high volume gainers on BSE included Torrent Power Ltd. (491.00, 6.74%), Can Fin Homes Ltd. (551.85, 5.90%) and Bandhan Bank Ltd. (247.95, 4.55%).

Top high volume losers on BSE were YES Bank Ltd. (18.15, -8.10%), Infibeam Avenues Ltd. (17.10, -7.82%) and Saregama India Ltd. (331.75, -7.68%).

Route Mobile Ltd. (1,142.20, -2.90%) was trading at 9.0 times of weekly average. Krishna Institute of Medical Sciences Ltd. (1,435.75, -3.37%) and Chalet Hotels Ltd. (342.00, 0.54%) were trading with volumes 7.7 and 7.4 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

8 stocks made 52 week highs, while 16 stocks tanked below their 52 week lows.

Stocks touching their year highs included - IDFC Ltd. (87.00, -0.23%), Swan Energy Ltd. (346.75, -4.23%) and Engineers India Ltd. (88.90, 1.14%).

Stocks making new 52 weeks lows included - Atul Ltd. (7,139.95, -3.92%) and GlaxoSmithKline Pharmaceuticals Ltd. (1,277.65, -0.90%).

9 stocks climbed above their 200 day SMA including Can Fin Homes Ltd. (551.85, 5.90%) and Au Small Finance Bank Ltd. (640.90, 3.98%). 14 stocks slipped below their 200 SMA including India Cements Ltd. (207.85, -3.44%) and The Ramco Cements Ltd. (689.90, -2.11%).

 
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The Baseline
21 Jan 2023
Chart of the week: Stocks that saw promoters raise their stake: Did they beat the index?
By Abdullah Shah

Investors track promoter holding changes in companies closely. An increase in promoter holding, they argue, reflects the promoter’s confidence in the company, and share purchases by promoters often trigger follow-on buying by retail investors and traders. 

This week, we look at stocks that have seen the highest increases in promoter holding over the past two years. These companies' promoter holdings also increased QoQ in the past quarter. Out of the 13 Nifty 500 stocks, seven have risen over the same time period while six have beaten the Nifty 50 index. 

Godrej Agrovet witnessed its promoter holding rise the most among Nifty 500 companies in the past two years. The other agricultural products company’s promoters increased their holding by 4 percentage points to 74.1% over. However, the stock has fallen 16.3% in the same period. Godrej Industries bought 1.1 crore shares ( or 5.6% stake) in the company, taking its holding to 64.9%. 

Over the past two years, promoters of ACC have increased their holding by 2.2 percentage points to 56.6%. Endeavour Trade And Investment bought 2.2% stake (or 40.6 lakh shares) in the cement & cement products company during. The stock rose 34.3%, beating the Nifty 50 index by 8.7 percentage points.  

Balrampur Chini Mills saw its promoters increase their holding by 1.2 percentage points to 42.4% over the same period. The sugar stock has risen 123.7%, beating the Nifty 50 by 98.1 percentage points. Vardhman Textiles’s promoter holding also rose 100 bps to 63.9%. Vardhman Holdings bought a 1.1% stake (6.7 crore shares) in the textiles company. The stock has risen 48.3% over the period, beating the Nifty 50 by 22.8 percentage points.

A few other notable stocks in the screener and chart are Chambal Fertilisers Chemicals, JM Financial, Bajaj Holdings and Investment and Bajaj Auto. A Clearly the companies with the largest increase in promoter holding have not necessarily beaten the Nifty 50 index over the past two years. Promoters generally only increase their holding after being sure that the company will have a strong fundamental performance, but industry dynamics can change (as was the case for two-wheeler company Bajaj Auto) hitting share prices.  

 
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The Baseline
20 Jan 2023
Five Interesting Stocks Today
  1. Persistent Systems: This IT Consulting & Software company rose 7.5% in trade on Thursday after announcing its Q3FY23 results. Its net profit has improved 8.2% QoQ to Rs 238 crore on the back of falling attrition rates and margin expansion. This healthy performance helped the stock show up in a screener for companies with net profits increasing sequentially for the past four quarters. The stock has a high Trendlyne checklist score of 82.61%.

Its EBIT margin has improved 80 bps QoQ to 15.4% as its employee costs as a percentage of revenue fell by 160 bps QoQ. Also, its attrition rates falling sharply by 210 bps QoQ to 21.6% aided margin expansion. The company’s attrition rates have been consistently falling since touching 26.9% in Q3FY22, on a sequential basis. Its revenue growth of 5.9% QoQ was driven by robust deal wins and growth across all its business verticals. 

Surprisingly, growth in Europe has been robust  at 12.2% QoQ and contributed 9% to the total revenue. This is despite the region being in the midst of an energy crisis. According to reports, this is in line with other major IT companies which have reported robust growth in Europe. The company’s biggest market, North America, accounted for 77.1% of its revenue and grew by only 1.5% QoQ.    

Its total contract value (TCV) has risen 20% QoQ to $440.2 million, with new deals making up 54% of its TCV. According to reports, ICICI Securities believes the company will see growth in the coming quarters, as more than half of its TCV consists of new deals. 

  1. Federal Bank: This banking stock has outperformed theNifty Private Banks index by 3.46% in the past month and rose 5.8% in the past week. The stock reaction was in anticipation of its Q3FY23 results. The results didn’t disappoint - Federal Bank reported the highest-ever quarterly earnings for Q3FY23 and net interest income growth of 27.1% YoY and 11.0% QoQ. Its advances growth is 19% YoY and 4% QoQ. Its total deposits have crossed the Rs 2,00,000-crore milestone, reaching Rs 2,01,425 crore in Q3. This stock shows up in ascreener for companies with good quarterly growth in recent results.

In its future outlook, Federal Bank management has guided FY23 with a Return on Asset (RoA) of 1.25-1.3% and a further 10 bps improvement going into FY24. Healthy RoA delivery will be driven by steady margins in the range of 335-340 bps, backed by high-teens credit growth.

According to Axis Direct, growth in new high-yielding products remains robust. Operating expenditures will reduce going forward and margins will improve despite the increase in the cost of funding.HDFC securities says Federal Bank has benefitted from a timing difference in asset/deposit repricing, offsetting higher employee operating expenditure (provision for wage revision) and higher provisions for security receipts. HDFC securities and Axis Direct maintain a ‘Buy’ rating on the stock post-Q3FY23 results.

  1. Metro Brands: This footwear stock rose 2.3% in trade on Tuesday in reaction to the strong results it posted. The company’s net profit has grown 11% YoY to Rs 112 crore in Q3FY23, better than analyst estimates. The stock reaction has been positive and gained nearly 5% in the past week.

The company added 48 stores in this quarter, which is one of the highest-ever store additions to date. The revenue growth comes on the back of retail expansion and a better product mix. Revenue has increased 23.8% YoY in Q3. However, the EBITDA margin has gone down to 34.3% in Q3, a dip of 44 bps YoY due to an increase in staff expenses. In December, the company acquired Cravatex and analysts expect the brand to contribute 5% to the revenue in FY23. The company also shows up in a screener of stocks with improving cash flow for the past two years.

An interesting thing about the footwear industry is that, although rubber prices have fallen, footwear stocks are not attracting investors. Generally, a fall in costs means better earnings for the companies, however, the footwear industry has not been able to garner investor interest. They prefer tyre stocks as their margins are proportional to natural rubber prices, unlike footwear companies. Some reports also suggest that consumers have shifted to cheaper alternatives as inflation affected their spending patterns and the industry is losing its charm.

However, analysts from ICICI Securities maintain a ‘Buy’ on the stock and expect revenue to grow 37% CAGR over FY22-24E.  But increasing competition from regional players and lag in-store addition could be a dampener for growth for Metro Brands if the momentum does not continue in Q4FY23.

  1. ICICI Lombard General Insurance Co: This general insurance company fell 4% on Thursday after it reported its Q3FY23 earnings. Though the company’s revenue and net profit have risen YoY, both parameters missed Trendlyne’s Forecaster estimates by 10.4% and 12% respectively. In addition, ICICI Lombard’s gross direct premium income grew 16.9% in Q3, which is lower than the industry growth of 18.1%.

On the other hand, the insurer’s health segment has improved 47.9% YoY in Q3, higher than the industry growth of 34.9%. The health segment continues to be the fastest growing in the general insurance industry, says the Managing Director and CEO, Bhargav Dasgupta. For 9MFY23, the company outperformed its industry in the health insurance segment with 39% growth, he added. Consequently, the health insurance segment’s contribution to the total premium has increased to 26% from 22% YoY earlier.

Whereas the motor insurance segment, which contributes over 40% of the total premium,  grew 10.1% in 9MFY23, as against the 16% growth of the industry.

Post the earnings update, foreign brokerage Morgan Stanley has an ‘Overweight’ rating on the stock. The brokerage says that underwriting loss and investment income are lower than its estimates, but ICICI Lombard’s management has guided for continued investments in the retail health space and a gradual improvement in the return on equity (RoE) to high-teens. The company features in a screener of companies with RoE declining over the past two years.

  1. Asian Paints: This furniture, furnishing and paints company has fallen 3.1% as its Q3FY23 net profit missed Forecaster estimates by 4.4%. The company’s revenue has risen marginally by 1.3% and its net profit increased by 5.6% YoY to Rs 1,074.2 crore. Analysts had expected its profit to grow higher based on deflation in the cost of raw materials, according to reports, but the company suffered from flat demand owing to the monsoon extending into the festive season. The company shows up in a screener of stocks which benefit from lower crude oil prices.

The company’s bath fittings and kitchen businesses also fell 10.9% and 7.1% YoY respectively, while the industrial business grew 23.9% YoY. Speaking about the results, Amit Syngle, Managing Director & Chief Executive Officer (CEO) of the company said, "The domestic decorative business registered flat volume and value sales delivery for the quarter, on a very high price increase base in the previous year. The extended monsoon in October also affected retailing in the peak festival season."

Asian Paints has a medium rank in Trendlyne’s checklist with a score of 47.8% and is in the sell zone as its current PE is trading at higher levels, when compared to its historical values. 

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

Trendlyne Analysis

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Riding High:

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

Downers:

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

Volume Shockers

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

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

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

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

BSE 500: highs, lows and moving averages

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

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

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

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

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

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

PremiumThis is a premium article. Click here to read.

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

Trendlyne Analysis

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Riding High:

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

Downers:

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

Volume Rockets

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

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

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

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

BSE 500: highs, lows and moving averages

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

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

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

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

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

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

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

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

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

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

You can find some popular screenershere.

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

Trendlyne Analysis

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Riding High:

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

Downers:

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

Movers and Shakers

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

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

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

Grindwell Norton Ltd. (1,935.00, -1.46%) was trading at 8.2 times of weekly average. CCL Products India Ltd. (517.55, -0.37%) and Eris Lifesciences Ltd. (632.50, -2.96%) were trading with volumes 5.7 and 5.7 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

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

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

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

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