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Trendlyne Marketwatch
Trendlyne Marketwatch
14 Feb 2023
Market closes higher, Bharat Forge's Q3FY23 net profit falls 81.3% YoY to Rs 78.7 crore

Trendlyne Analysis

Nifty 50 closed at 17,929.85 (159.0, 0.9%), BSE Sensex closed at 61,032.26 (600.4, 1.0%) while the broader Nifty 500 closed at 14,968.90 (68.4, 0.5%). Of the 1,951 stocks traded today, 600 were in the positive territory and 1,310 were negative.

Nifty 50 rose over 150 points and closed in the green, with the volatility index, India VIX, falling below the 14% mark. Adani Enterprises rose nearly 2% in trade after it posted Q3FY23 results. But five Adani Group companies extended their fall from Monday and closed at their lower circuits. 

Nifty Midcap 100 and Nifty Smallcap 100 closed in the red, despite the benchmark index closing higher. Nifty Metal recovered from its day’s low and closed over 1.4% higher led by Steel Authority of India, which rose after announcing its Q3FY23 earnings. Nifty IT also closed in the green, following the tech-heavy Nasdaq 100 index, which closed 1.6% higher on Monday.  

In international markets, major Asian indices closed in the green amid positive global cues. European stocks edged higher, helped by strong UK labor market data despite the country's economic woes. US indices futures trade flat as investors look ahead to the US inflation print, scheduled to be released later today.

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

  • Eicher Motorsis falling despite its Q3FY23 net profit rising 62.4% YoY to Rs 740.8 crore and revenue growing 29.2% YoY. The company shows up in a screener for stocks in the PE Buy zone with a high durability score and rising momentum score.

  • Adani Enterprises' PAT up 410% YoY to Rs 740 crore in Q3FY23. Revenue increases 41.9% YoY.

  • Bharat Forge is falling as its consolidated net profit falls 81.3% YoY to Rs 78.7 crore in Q3FY23. Raw material costs, employee benefit expenses and finance costs cut down profitability. However, revenue grows 40% YoY and the stock shows up in a screener with improving net cash flow for the past two years.

  • National Fertilizers is rising as it posts a net profit of Rs 554 crore in Q3FY23, compared to a loss of Rs 23.1 crore in Q2FY23. Revenue jumps 99.1% YoY led by robust growth in its fertilizers trading and production segments. The stock shows up in a screener for companies with revenue increasing sequentially for the past three quarters.

  • Ipca Laboratories is falling as its net profit falls 45.2% YoY to Rs 107.8 crore in Q3FY23. This is because of an increase in inventory, finance and other expenses. Revenue grows 8.1% YoY and the stock ranks high on the Trendlyne Checklist score.

  • HDFC Securities maintains its ‘Buy’ rating on Info Edge and raises the target price to Rs 4,600 from Rs 4,525. This implies an upside of 32.1%. The brokerage remains positive on the firm’s growth prospects, given its dominant online traffic share and long-term contracts.

  • Aurobindo Pharma's Unit-IX, an API intermediate facility in Sangareddy district, Telangana, that was under inspection by US FDA has been classified as Voluntary Action Indicated.

  • Varun Beverages, Relaxo Footwears and KPR Mill outperform the Nifty 50 indexover the week post their Q3FY23 results.

  • India’s Wholesale Price Index (WPI) inflation declines to a 24-month low of 4.73% in January compared to 4.95% in December 2022. The decline is contributed by a fall in the prices of mineral oils, chemicals & chemical products, and textiles, among others.

  • Finolex Cables trades near its 52-week high as it reports decent earnings in Q3FY23. Net profit grows 42% YoY and revenue is up 18%. Reports suggest that foreign brokerage Jefferies has retained its ‘Buy’ rating on the stock with a target price upside of 26%.

  • VS Mani, Executive Director & Global CFO at Glenmark Pharmaceuticals, says the company’s turnover could be around Rs 3,400 crore in Q4FY23. He adds that Glenmark Pharma has a growth target of 6% for FY23.

  • Shree Cements' Whole-Time Director Prakash Narayan Chhangani resigns from the post to pursue a career outside the organisation. His resignation is effective from February 13, 2023.

  • Realty stocks like Prestige Estates Projects, Oberoi Realty, DLF and Brigade Enterprises are falling in trade. The broader sectoral index Nifty Realty is also trading in the red.

  • Grindwell Norton, Gujarat State Petronet and Gujarat Gas’ Q3FY23 net profits fall 11%, 17.6% and 8.1% QoQ respectively.

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

  • India’s CPI inflation rises to 6.52% in January compared to 5.72% in December 2022. This is because of the surge in food prices and food inflation at 5.9%.

  • Promoter Hulst B V sells a 9.8% stake (60 lakh shares) worth Rs 2,430 crore in Coforge in a bulk deal on Monday. Aditya Birla Sun Life Mutual Fund, Kuwait Investment Authority and Nomura India Inv pick up the shares.

  • FSN E-commerce Ventures (Nykaa) is falling as its Q3FY23 net profit drops 70.7% YoY to Rs 8.2 crore on higher purchases of traded goods and other expenses. Revenue rises 33.2% YoY as gross merchandising value sees growth across segments. The stock shows up in a screener for companies with revenue rising sequentially over the past three quarters.

  • IRB Infrastructure Developers is falling despite its net profit rising 94.5% YoY to Rs 141.3 crore in Q3FY23. Revenue increases across all segments but road and site expenses surge more than 70%. It shows up in a screener of stocks with growth in quarterly net profit and margin YoY.

  • Steel Authority of India’s Q3FY23 net profit declines 64.5% YoY to Rs 542.2 crore due to higher cost of materials and finance costs. Revenue marginally falls by 0.8% YoY despite crude steel production and sales volume rising YoY. The stock shows up in a screener for companies with declining net cash flows.

Riding High:

Largecap and midcap gainers today include Oil India Ltd. (257.80, 6.97%), UPL Ltd. (761.60, 3.79%) and ITC Ltd. (386.45, 3.27%).

Downers:

Largecap and midcap losers today include Star Health and Allied Insurance Company Ltd. (506.15, -5.54%), Adani Power Ltd. (148.20, -5.00%) and Adani Green Energy Ltd. (653.65, -5.00%).

Volume Shockers

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

Top high volume gainers on BSE included Oil India Ltd. (257.80, 6.97%), Finolex Cables Ltd. (597.80, 5.75%) and Rashtriya Chemicals & Fertilizers Ltd. (112.40, 4.80%).

Top high volume losers on BSE were Allcargo Logistics Ltd. (364.55, -10.18%), RHI Magnesita India Ltd. (692.10, -7.58%) and Indiabulls Real Estate Ltd. (55.85, -7.46%).

Phoenix Mills Ltd. (1,302.35, -3.33%) was trading at 11.8 times of weekly average. Cholamandalam Financial Holdings Ltd. (605.65, -1.66%) and Bosch Ltd. (17,412.40, 0.02%) were trading with volumes 8.8 and 5.8 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

5 stocks made 52-week highs, while 22 stocks were underachievers and hit their 52-week lows.

Stocks touching their year highs included - Cera Sanitaryware Ltd. (5,927.95, -2.92%), Cummins India Ltd. (1,599.75, 0.28%) and Finolex Cables Ltd. (597.80, 5.75%).

Stocks making new 52 weeks lows included - Adani Transmission Ltd. (1,071.00, -5.00%) and Alembic Pharmaceuticals Ltd. (498.00, -3.28%).

8 stocks climbed above their 200 day SMA including KIOCL Ltd. (200.75, 1.47%) and Orient Electric Ltd. (273.10, 1.26%). 23 stocks slipped below their 200 SMA including Allcargo Logistics Ltd. (364.55, -10.18%) and RHI Magnesita India Ltd. (692.10, -7.58%).

 
Trendlyne Marketwatch
Trendlyne Marketwatch
13 Feb 2023
Market closes lower, ICICI Direct maintains 'Buy' on Mahindra & Mahindra

Trendlyne Analysis

Nifty 50closed at 17,770.90 (-85.6, -0.5%), BSE Sensexclosed at 60,431.84 (-250.9, -0.4%) while the broader Nifty 500closed at 14,900.50 (-115.4, -0.8%). Of the 1,974 stocks traded today, 553 were gainers and 1,372 were losers.

Indian indices recovered from their day’s lows but still closed in the red. The IIP data released on Friday indicated IIP growth eased to 4.3% in Dec 2022 from 7.3% in Nov 2022. Mining output rose by 9.8% and power generation increased by 10.4% in January.
Adani Group companies closed lower while Adani Enterprises fell 7.2% in trade today after Moody’s downgrade of four group companies.

Nifty Midcap 100 and Nifty Smallcap 100 closed in the red, following the benchmark index closing lower. Nifty Media closed over 2.4% lower led by Zee Entertainment Enterprise. However, Nifty FMCG closed flat. Other major sectoral indices closed in the red. Nifty IT also closed in the red, in line with the tech-heavy Nasdaq 100 futures, which traded lower.

Major Asian indices closed in the red amid weak global cues. European indices also traded lower, tailing Asian indices, despite US indices futures trading in the green. US is set to release its CPI data on Tuesday. Investors expect the CPI to trend downwards, and any increase in CPI will spook the markets.

  • Coforgesees a short buildup in its February 23 future series as its open interest rises 32.7% with a put-call ratio of 0.35.

  • Bharat Heavy Electricals is falling despite an increase in net profit by 56.5% YoY to Rs 42.28 crore. However, revenue increases marginally by 0.4% YoY. It shows up in a screener of companies with high TTM EPS growth.

  • Rail Vikas Nigam, Engineers Indiaand IDFCare trading below their third support or S3 levelas market trades lower.

  • Borosil Renewables is falling as its Q3FY23 net profit falls 50.9% YoY to Rs 22.5 crore and revenue dips 4.2% YoY. The fall in profit is due to an increase in materials consumed, finance, and power and fuel cost. The company shows up in a screener of stocks with improving cash flow from operation for the past two years.

  • Apollo Hospitals, Siemensand Bharat Forgerise 3.4%, 3.4% and 3.1% respectively over the past week, ahead of their Q3FY23 results tomorrow.

  • According to data from the Society of Indian Automobile Manufacturers (SIAM), sales of passenger vehicles rise 17.2% YoY to 2.98 lakh units in January and two-wheeler sales increase 3.5% YoY to 11.8 lakh units.

  • ICICI Direct maintains its rating on Mahindra & Mahindra at ‘Buy’ and raises the target price to Rs 1,665 from Rs 1,590, indicating an upside of 22%. The brokerage believes that the company's renewed focus on efficient capital allocation and aggressive EV launch pipeline are structural positives. It anticipates the firm’s sales to grow at a CAGR of 24% over FY22-25.

  • Balkrishna Industries, Metropolis Healthcare, Chemplast Sanmar and RattanIndia Enterprises declare Q3FY23 results in the past week; their net profit falls QoQ and YoY for the quarter.

  • Glenmark Pharmaceuticals is rising as its net profit improves 21.1% YoY to Rs 290.7 crore in Q3FY23. An increase in sales from Latin America, Middle East and African regions has helped the revenue grow 8%. The company shows up in a screener of stocks effectively using its capital to generate profit.

  • Adani Ports & Special Economic Zone and Ambuja Cements will be excluded from NSE’s Additional Survey Measure (ASM) framework, effective today. These companies have been under the ASM framework since February 3 amid a huge sell-off as a result of the Hindenburg Research Report.

  • J K Cement, Finolex Industries and One97 Communications (Paytm) outperform the Nifty 50 index over the week post their Q3FY23 results.

  • Media stocks like TV18 Broadcast, Zee Entertainment Enterprises and Sun TV Network are declining in trade. All constituents of the broader Nifty Media index are trading in the red.

  • Abbott India's net profit grows 24% YoY to Rs 246.8 crore in Q3FY23, while revenue rises 8.3% YoY. EBITDA margin increases by 190 bps YoY. The company shows up in a screener of stocks with improving net profit and profit margin (YoY).

  • Reports suggest that 34.36 lakh shares of DLF, amounting to Rs 124.2 crore, change hands via a block deal.

  • Oil India rises as its Q3FY23 net profit grows 76% YoY to 2,284.4 crore and revenue increases 31.2% YoY to Rs 10,712.1 crore. Its Board declares a second interim dividend of Rs 10 per share. It shows up in a screener for stocks in the PE buy zone, with reasonable durability and rising momentum score.

  • Thermax is rising as it wins an order worth Rs 251.7 crore for the renovation and modernization of a thermal power station in Bankura, West Bengal. It shows up in a screener of companies with low debt.

  • Indian rupee depreciates to 82.68 from the previous close of 82.50 against the US dollar in early trade due to a strong dollar and muted trend of domestic equities.

  • PB Fintech is rising after its net loss narrowed to Rs 87 crore in Q3FY23, against Rs 298 crore in Q3FY22. The company says that it will achieve positive EBITDA by Q4FY23. It shows up in a screener for stocks with increasing revenue for the past two quarters.

  • IT stocks like Coforge, Persistent Systems, LTIMindtree and Infosys are falling in trade. The broader sectoral index Nifty IT is also trading in the red.

  • PSU Bank stocks like State Bank of India, Punjab & Sind Bank, Canara Bank and Indian Overseas Bank are falling in trade. The broader sectoral index Nifty PSU Bank is also trading in the red.

  • BEML wins an order worth Rs 377.98 crore for the supply of track-width mine ploughs for Arjun MBT, an army tank. The order is likely to be completed by January 2026. The stock shows up in a screener of stocks with improving RoCE for the past two years.

  • Kotak Mahindra Bank enters into an agreement to acquire a 100% stake in Sonata Finance, a microfinance institution, for Rs 537 crore. The bank will use Sonata’s distribution network to provide better banking services to its customers. The bank ranks high on the Trendlyne Checklist score.

Riding High:

Largecap and midcap gainers today include Oil India Ltd. (241.00, 7.81%), Gland Pharma Ltd. (1,365.00, 3.86%) and Titan Company Ltd. (2,519.05, 2.05%).

Downers:

Largecap and midcap losers today include Balkrishna Industries Ltd. (2,052.25, -11.09%), Info Edge (India) Ltd. (3,463.85, -9.18%) and Lupin Ltd. (675.15, -8.41%).

Movers and Shakers

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

Top high volume gainers on BSE included Sun Pharma Advanced Research Company Ltd. (220.75, 17.11%), Oil India Ltd. (241.00, 7.81%) and Glenmark Pharmaceuticals Ltd. (422.60, 5.54%).

Top high volume losers on BSE were City Union Bank Ltd. (134.90, -15.71%), Balkrishna Industries Ltd. (2,052.25, -11.09%) and Info Edge (India) Ltd. (3,463.85, -9.18%).

Galaxy Surfactants Ltd. (2,430.00, 4.93%) was trading at 26.0 times of weekly average. Coforge Ltd. (4,032.25, -6.97%) and Godrej Industries Ltd. (428.55, 0.34%) were trading with volumes 25.5 and 20.1 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

8 stocks hit their 52-week highs, while 11 stocks were underachievers and hit their 52-week lows.

Stocks touching their year highs included - Blue Star Ltd. (1,365.25, -0.83%), Cera Sanitaryware Ltd. (6,080.00, 0.74%) and Sonata Software Ltd. (658.30, 0.05%).

Stocks making new 52 weeks lows included - Adani Transmission Ltd. (1,127.35, -5.00%) and Alembic Pharmaceuticals Ltd. (514.90, -1.86%).

7 stocks climbed above their 200 day SMA including Vedant Fashions Ltd. (1,274.00, 1.23%) and Ajanta Pharma Ltd. (1,219.90, 0.98%). 19 stocks slipped below their 200 SMA including Balkrishna Industries Ltd. (2,052.25, -11.09%) and Lupin Ltd. (675.15, -8.41%).

 
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The Baseline
10 Feb 2023
Five Interesting Stocks Today
  1. Cummins India: This industrial machinery company's stock rose 7% and hit its all-time high of Rs 1,618 on Thursday as its Q3FY23 net profit increased 65.9% YoY to Rs 413.8 crore. Both revenue and net profit beat Trendlyne’s forecaster estimates by 8% and 52% respectively. An increase in domestic and export sales has helped revenue grow 25.8% YoY. The company is in a screener of stocks with improving QoQ revenue for the past three quarters. 

Cummins India’s revenue from the engines segment, which contributes to 77.7% of its revenue, has grown by 25.9% YoY. The company stands to benefit from the government’s estimated outlay of Rs 2.4 lakh crore in FY24 in the railways segment. Ashwath Ram, Managing Director of the company, states, “The recent budget announced by the Government of India has a stronger outlay for the infrastructure sector, including railways, which is expected to create strong demand from various segments in the domestic market.” 

The company’s board of directors has also approved an interim dividend of Rs 12 per share on 27.7 crore shares. Record date for the payment of the dividend is set for February 21. 

  1. InterGlobe Aviation (Indigo): This airline stock’s net profit has zoomed 10X YoY to Rs 1,422.6 crore in Q3FY23. The stock closed 2% above its opening price since its declaration of results last Thursday. The surge in profit is because of reducing fuel costs –  aircraft fuel expenses have fallen 7.6% QoQ as jet fuel prices fell globally in Q3FY23. Another cost advantage Indigo has is the dip in lease charges as a percentage of revenue. In Q3FY23, lease charges fell to 12.9% of revenues, compared to 19.2% in Q3FY22. This is because Indigo’s number of fuel-efficient aircraft has gone up. As of December 2022, Indigo has 238 new engine (Neo) aircraft – which are designed to accommodate more passengers with the same fuel costs – out of the total 302. 

Indigo’s domestic and international demand has been high in Q3. It aims to increase the international ASK (available seat per kilometre) mix to 40% over the next 3-5 years. A report from ICICI Securities suggests that the international ASK will increase more than 40% YoY in Q4FY23. The management, in its earnings call, said that Indigo is operating at 105% of its pre-Covid capacity. According to CEO Pieter Elbers, Q3 performance has been strong operationally and financially, as demand for air travel improved. Indigo expects capacity to increase by 15% in FY24. However, new airlines might eat into the current market share of 55%. 

As of February, 17 analysts recommend a ‘Buy’ on the stock. ICICI Securities and Prabhudas Lilladher have increased their target price for the stock by more than 15% after the airline’s robust performance in Q3FY23. In the past three months, the stock has gained 15% and shows up in a screener with a high momentum score.

  1. Varun Beverages: This non-alcoholic beverage company rose over 5% on Tuesday after it posted strong Q4CY22 results. Varun Beverages’ (VBL’s) net profit has jumped 2.5x YoY to Rs 74.8 crore and beat its Forecaster estimates by over 25%. Its revenue increased by 27.7% YoY in Q4CY22 thanks to strong volume growth and higher realisations. With strong Q4CY22 results, the company features in a screener of companies with annual net profit improving for the past two years.

VBL’s profit has risen as net realisation per unit improved through strategic measures, including selective price hikes, rationalised discounts and incentives, and improved product mix. This was also backed by energy drink Sting, which has a higher realisation. Commenting on the performance of the company, Ravi Jaipuria, Chairman of Varun Beverages said that a strong recovery in demand post-pandemic and continued efforts towards expanding the distribution network across markets resulted in the growth of sales volume.

Axis Direct has maintained its ‘Buy’ rating on the stock post VBL’s Q4CY22 results announcement. The brokerage expects the company to perform well in terms of expansion in its distribution, growth in international geographies, and focus on expanding the high-margin energy drink, Sting, across outlets.

Meanwhile, ICICI Securities maintains its ‘Hold’ rating but increases the target price to Rs 1,225. Though the brokerage is positive on growth prospects, it says that it would be difficult for the company to grow at a fast pace on a high base in CY23.

  1. Vinati Organics: This specialty chemicals stock released its Q3FY23results on February 6. Vinati Organics’ revenue has grown by 38% YoY to Rs 508 crore but fell 10% QoQ owing to low volumes in the ATBS chemical, which constitutes ~40-50% of overall revenue. The capacity is expected to expand from 40,000 MT to 60,000 MT for ATBS and the new chemical portfolio.  The upcoming commissioning of ATBS, MEHQ, Guaiacol and Iso Amylene plants will aid revenue growth. Post expansion, the revenue is expected to grow by 23% to Rs 2,630 crore. EBITDA margin has seen an expansion of 1,072 bps YoY, backed by increased pricing power for its products.

Vinati Organics has not seen much growth post results. ICICI Direct and HDFC Securities have downgraded their target price owing to overvaluation. The stock shows up in our DVM scorescreener as an expensive performer.

ICICI Direct says the IBB chemical, which contributes to approximately 30% of the company’s revenues, is seeing a revival in demand and an increase in market share. Revenue numbers are below the estimated levels, whereas EBITDA and PAT margins have exceeded expectations. ICICI Direct has a ‘Hold’ rating on the stock.

According to HDFC Securities, the company’s shift in revenue mix towards lower margin products (IBB) will hamper EBITDA margin expansion going forward.  HDFC has a ‘Sell’ rating on the stock.

  1. Blue Star: This consumer electronics manufacturer has grown over 12% since announcing its Q3FY23 results on January 31, which beat the street’s estimates. Its net profit grew 23% YoY to Rs 58.4 crore, beating Trendlyne’s Forecaster estimates by 3.3%. The management attributes this improvement in profitability to a healthy order inflow, robust demand and a better product mix. Due to this strong Q3 performance, the stock is trading above its short, medium and long-term moving averages. 

The company’s largest segment, electromechanical projects & commercial air conditioning systems, has grown 20.5% YoY and contributed 55.9% to the consolidated revenue. This growth was aided by healthy order inflow. BoB Capital Markets expects this segment’s order book to see greater traction in the near term, given the Centre’s push to increase the infrastructure capex. The brokerage also anticipates a rise in orders from the railway electrification business vertical.

The unitary products segment, which primarily produces room air conditioners and commercial refrigeration products, saw its EBIT margins expand by 100 bps YoY to 7.4%. Margins improved on the back of a better product mix and sustained demand for commercial refrigeration products. 

The company began commercial production at its new facility in Sri City, Andhra Pradesh in January 2023, just in time to ramp up for the summer season. The new facility will manufacture 3 lakh AC units and will reach 12 lakh units annually by 2027. The management is optimistic about the near-term demand growth given the onset of summer. It has also guided to increase its market share in the room air conditioners business to 15% in FY25 from 13.25% currently.  

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

 
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The Baseline
10 Feb 2023
Which stocks did superstar investors buy in Q3FY23?
By Abhiraj Panchal

Many investors closely track the portfolios of superstars to identify interesting sectors and stocks to invest in. We take a look at some of the stocks superstar investors bought or added more of, during Q3FY23.

Most superstar investors didn’t see major QoQ changes in their net worth in Q3FY23, except Dolly Khanna. Her net worth fell by 21.4% QoQ to Rs 409.74 crore during the quarter. 

Sunil Singhania and Vijay Kedia’s net worth fell by 5.1% and 5.3% respectively, while Porinju Veliyath’s net worth fell by 1.3%. Ashish Kacholia’s net worth rose by 1.6% and Rakesh Jhunjhunwala's portfolio value rose marginally.

These superstars have varied investing interests, as shown in the chart below, which indicates the sector with the biggest share in each superstar’s portfolio. 

RARE Enterprises’ favoured sector is textiles, apparels and accessories, while Sunil Singhania’s is metals and mining, Ashish Kacholia’s is chemicals and petrochemicals.

Rare Enterprises increases stake in Banking & Finance and Auto stocks

Rakesh Jhunjhunwala’s portfolio rose marginally by 0.01% QoQ to Rs 33,230.4 crore in Q3FY23. Rare Enterprises, which manages the late big bull’s portfolio, increased stakes in several companies during the quarter. 

Rakesh Jhunjhunwala’s portfolio increased its stakes in Rallis India and Federal Bank by 0.9% each to 10.3% and 3.5% respectively. It also increased its holding in Geojit Financial Services and Canara Bank by 0.8% and 0.6% to 8.4% and 2.1% respectively.

Rare also increased holdings in Tata Motors and NCC by 0.5% each during Q3, and bought more shares in Karur Vysya Bank, Tata Communications and Edelweiss Financial Services. 

According to shareholder filings, the portfolio’s largest buys were healthcare supplies company Bilcare and auto parts and equipment maker Autoline Industries. But this data point should come with a disclaimer. 

In Q1FY23, the total holding of Rakesh and Rekha Jhunjhunwala in Bilcare and Autoline was 8.5% and 4.5%, respectively. In the Q2FY23 BSE fillings of Bilcare and Autoline Industries however, the names of Rakesh Jhunjhunwala or Rekha Jhunjhunwala are not mentioned in the shareholders list. But the Q3FY23 BSE filings of both the companies show Rekha Jhunjhunwala back in the list as a shareholder with significant stakes. She holds a stake of 7.4% in Bilcare and 4.3% in Autoline Industries. 

The large movement in shareholding could be due to a filing error in Q2, and hence these companies are not included in the chart above. 

Sunil Singhania’s Abakkus Fund increases stake in multiple small-cap companies

Sunil Singhania’s Abakkus Fund saw its consolidated net worth fall by 5.1% QoQ in Q3FY23 to Rs 1,973.8 crore. It added Tracxn Technologies to the portfolio during the quarter by buying a 1.6% stake in the IT consulting company. It also bought a 1.8% stake in Dreamfolks Services, a travel support services company and added a 0.3% stake in Mastek, increasing its stake in the IT company to 3.1%. 

The fund also bought an additional 0.2% stake in Sarda Energy & Minerals, Ion Exchange (India) and Technocraft Industries (India) each, bringing its stake to 2.1%, 3.2% and 3% respectively. It added minor stakes in already existing small-cap portfolio companies like Dynamatic Technologies, Stylam Industries, Siyaram Silk Mills and HG Infra Engineering, taking its holdings to 2.6%, 2.4%, 2.1%, and 1.5% respectively. 

After selling its stake in CMS Info Systems in Q2FY23 to below 1%, Abakkus  now holds a 1% stake in the company.

Ashish Kacholia adds four small-cap companies to his portfolio

Ashish Kacholia’s net worth increased by 1.6% QoQ to Rs 1,800.3 crore in Q3FY23. During the quarter, he added Goldiam International (textile company), Raghav Productivity Enhancers (capital goods company), Likhitha Infrastructure (infrastructure service provider) and Knowledge Marine & Engineering Works (transportation company) to his portfolio. He purchased 1%, 2.1%, 2% and 2.3% stakes in these companies respectively.

The marquee investor purchased 1.3% and 1.2% stakes in chemical companies Agarwal Industrial Corp and Yasho Industries respectively and now holds 3.8% in each. During Q3FY23, he added 0.8% of Best Agrolife (now holds 2.3%), 0.6% of SJS Enterprises (now holds 4.4%), 0.4% of TARC (now holds 2.2%) and 0.2% of Ador Welding (now holds 4.4%) to his portfolio. 

Kacholia bought an additional 0.1% stake in Gravita India, Megastar Foods and Xpro India, and now holds 2.1%, 1.1% and 4.5% stakes respectively. The other companies where he increased stakes were Garware Hi-Tech Films and PCBL.

Dolly Khanna makes no new additions to her portfolio in Q3FY23

Dolly Khanna’s net worth fell by 21.4% QoQ to Rs 409.7 crore in Q3FY23. Compared to previous quarters, the investor drastically slowed down buying in Q3. She only increased her stake marginally in three companies and did not make any new additions to her portfolio. Khanna tends to turn bearish when markets become volatile, so this is not unusual for the investor.. 

She raised her stake in Industrial Gases company National Oxygen by 0.1% to 1.2%. The company has risen over 6.3% over the past three months till February 8. She also raised 0.05% stake each in Monte Carlo Fashions and Prakash Pipes.   

Porinju Veliyath makes three new additions to his portfolio in Q3FY23

Porinju V Veliyath’s net worth fell by 1.3% QoQ to Rs 174.9 crore in Q3FY23. He added three new small and micro-cap companies to his portfolio. He bought a 1.3% stake in furniture manufacturer Priti International and 1.1% stake each in Max India and Lakshmi Automatic Loom Works in Q3.

The investor raised his stake in Special Consumer Services company Kaya by 1% to 2.4% in Q3FY23. This is after he cut 0.1% from  the company holding in Q2FY23. He also bought an additional minor stake in Aurum Proptech.

Vijay Kedia adds Siyaram Silk Mills to the portfolio

Vijay Kedia’s net worth fell 5.3% QoQ to Rs 729.7 crore in Q3. Kedia’s only buy during the quarter was a new addition–a 1.1% stake in Siyaram Silk Mills, an Indian blended fabric and garment manufacturer. In Q3FY23, the textile company’s net profit fell for the first time in the past seven quarters to Rs 51.9 crore.

Mohnish Pabrai increases his stake in Edelweiss Financial Services

Mohnish Pabrai’s net worth in Q3FY23 fell by 6.9% QoQ to Rs 1,540.02 crore. The only change he made in his portfolio was buying an additional 0.3% stake in Edelweiss Financial Services. As of Q3FY23, he holds a 6.7% stake in the company. The financial services company reported a 42.7% YoY increase in net profit to Rs 101.3 crore in Q3FY23.

 
Trendlyne Marketwatch
Trendlyne Marketwatch
10 Feb 2023
Market closes lower, Axis Direct upgrades rating on Ambuja Cements to 'Buy' from 'Hold'

Trendlyne Analysis

Nifty 50 closed at 17,856.50 (-37.0, -0.2%), BSE Sensex closed at 60,682.70 (-123.5, -0.2%) while the broader Nifty 500 closed at 15,015.85 (-14.3, -0.1%). Of the 1,952 stocks traded today, 986 were on the uptick, and 901 were down.

Indian indices recovered from their day’s lows but still closed in the red. Reuter’s poll of economists indicated that Indian annual retail inflation likely rose to 5.9% in January from a 12-month low in December. Adani Total Gas and Adani Transmission closed at their lower circuits while Adani Enterprises fell 3.9% in trade today after global index provider Morgan Stanley Capital International (MCSI) said it will cut the weights of these companies in its indices. Adani Group hired US legal firm Wachtell, which represented Twitter in Elon Musk's $ 44 billion deal, to take on short-seller Hindenburg.

Nifty Smallcap 100 and Nifty Midcap 100 closed in the green, despite the benchmark index closing lower. Nifty Realty closed over 1.3% higher led by DLF and Godrej Properties. However, Nifty Energy and Nifty FMCG closed lower than Thursday’s levels. Nifty IT also closed in the red, in line with the tech-heavy Nasdaq 100 futures, which traded lower. 

Most major Asian indices closed in the red amid weak global cues. European indices also traded lower, tailing Asian indices and US indices futures. The UK’s economy stagnated in Q4CY22 as its GDP remained unchanged between the third and fourth quarters of CY22. However, the British economy narrowly avoided recession, which is technically defined as two consecutive quarters of falling output/GDP.

  • MRFbeats Apollo Tyres in YoY revenue growth, annual RoCE and three-year average annual RoE. But it lags in YoY and QoQ net profit growth, PE ratio, MF holdings and broker average rating.

  • Mahindra & Mahindra's net profit grows 34.7% YoY to Rs 2,676.6 crore in Q3FY23. Rise in sales in the automotive and farm equipment segments aids the revenue to increase by 29.8% YoY. The company shows up in a screener of stocks with improving revenue QoQ for the past four quarters.

  • KPIT Technologies and CG Power & Industrial Solutions hit their all-time highs of Rs 849.9 and Rs 327 per share respectively. KPIT Technologies has risen 16.9%, while CG Power & Industrial Solutions rose 10.3% over the past month.

  • Axis Direct upgrades its rating on Ambuja Cements to ‘Buy’ from ‘Hold’ and lowers the target price to Rs 460 from Rs 555, implying an upside of 26.6%. The brokerage turns positive on the company due to its positioning in key markets, cost-saving initiatives and higher capacity utilisation.

  • Chris Wood, Global Head of Equity Strategy at Jefferies, expects a recession in the second phase of 2023. In the Greed & Fear note, he mentions the changes that will be made to India's long-only portfolio–adding investment in Bajaj Finance and trimming stake in HDFC Life Insurance and ICICI Lombard General Insurance.

  • Foreign institutional investors pull out Rs 3,951.6 crore from the equity market over the past week, according to Trendlyne's FII dashboard. Meanwhile, index futures receive the highest inflow of Rs 1,611.3 crore from foreign investors and mutual funds invest Rs 3,580.5 crore in the market.

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

  • Lupin is falling as its net profit declines 71.9% YoY to Rs 153.5 crore in Q3FY23. EBITDA margin grows 340 bps YoY on the back of a decrease in raw material and other expenses. The company features in a screener of stocks with declining net profit and profit margin (YoY).

  • Amit Uplenchwar, Director (Strategy & Subsidiaries Operations) of Kalpataru Power Transmissions, says the company’s order inflow could exceed the target of Rs 21,000 crore and be in the range of Rs 24,000-25,000 crore in FY23.

  • Suzlon Energy is rising as its Q3FY23 net profit surges more than 2X YoY to Rs 78.4 crore despite its revenue declining by 9.4% YoY. This improvement is due to the cost of raw materials declining 34.1% YoY. The company shows up in a screener for stocks with improving cash flow and a high durability score.

  • Hindalco Industries, Shree Cements and Page Industries’ Q3FY23 net profits fall 62.9%, 41.5% and 29.1% YoY respectively.

  • Housing Development Finance Corp, Titan and Berger Paints outperform the Nifty 50 index over the week post their Q3FY23 results.

  • Elara India Opportunities Fund and Cresta Fund from Hindenburg's report sell 0.26% and 0.32% stakes respectively in Adani Transmission in Q3FY23.

  • Sanjay Purohit, Group CEO of Sapphire Foods, says the company’s growth has normalised after 4-6 quarters. He expects revenue and EBITDA to grow 23-25% and 30-33% respectively for the next three years.

  • General Industrials, Banking & Finance and Media sectors trade above 3% over the past week.

  • Pfizer appoints Meenakshi Nevatia as the Managing Director and Additional Director of the company for a period of five years with effect from April 3, 2023, subject to the approval of shareholders.

  • One97 Communications (Paytm) is falling as 2.1 crore shares (3.4% equity) change hands in a block deal.

  • Zomato’s net loss widens to Rs 346.6 crore in Q3FY23 against a loss of Rs 63 crore in Q3FY22. Its finance and depreciation costs soar more than 4X YoY. However, Hyperpure and quick commerce revenues increase but revenue from the food delivery business falls in Q3. The stock ranks medium on the Trendlyne Checklist score.

  • Mahindra & Mahindra inks an MoU with the Telangana government for its expansion plans at its manufacturing facility in Zaheerabad, Medak. The project would entail setting up a facility to develop and produce three- and four-wheeler electric vehicles.

  • Voltas is falling as it posts a net loss of Rs 110.4 crore, compared to a net profit of Rs 96 crore in Q3FY22. This is on account of the rising cost of materials and a one-time provision of Rs 137.4 crore due to the cancellation of a contract. However, revenue grows 11.8% YoY led by the unitary cooling products segment.

  • Life Insurance Corp of India’s Q3FY23 net profit rises nearly 27X YoY to Rs 6,334.2 crore and net premium income increases 14.5% YoY. This growth is driven by healthy expansion in market share and first-year premium income. The stock shows up in a screener for companies with RoA improving over the past two years.

Riding High:

Largecap and midcap gainers today include Aurobindo Pharma Ltd. (468.85, 6.33%), Indus Towers Ltd. (168.00, 5.40%) and CG Power and Industrial Solutions Ltd. (327.85, 5.27%).

Downers:

Largecap and midcap losers today include One97 Communications Ltd. (650.55, -7.85%), Adani Transmission Ltd. (1,186.65, -5.00%) and Adani Total Gas Ltd. (1,255.40, -5.00%).

Volume Shockers

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

Top high volume gainers on BSE included Campus Activewear Ltd. (420.15, 6.46%), Aurobindo Pharma Ltd. (468.85, 6.33%) and Punjab & Sind Bank (29.25, 4.84%).

Top high volume losers on BSE were Fine Organic Industries Ltd. (4,764.05, -5.53%), Garware Technical Fibres Ltd. (2,953.20, -5.43%) and Lupin Ltd. (737.15, -4.80%).

Alkem Laboratories Ltd. (3,292.70, 1.93%) was trading at 9.2 times of weekly average. Akzo Nobel India Ltd. (2,315.30, 4.20%) and United Breweries Ltd. (1,480.75, -4.45%) were trading with volumes 8.8 and 8.8 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 were underachievers and hit their 52-week lows.

Stocks touching their year highs included - Britannia Industries Ltd. (4,622.70, -0.32%), Carborundum Universal Ltd. (1,011.80, 4.51%) and Mahindra & Mahindra Financial Services Ltd. (265.05, -1.98%).

Stocks making new 52 weeks lows included - Adani Transmission Ltd. (1,186.65, -5.00%) and Page Industries Ltd. (38,786.20, 2.18%).

16 stocks climbed above their 200 day SMA including Vedant Fashions Ltd. (1,258.50, 3.20%) and Glenmark Pharmaceuticals Ltd. (400.40, 1.55%). 10 stocks slipped below their 200 SMA including Astral Ltd. (1,941.65, -4.36%) and Havells India Ltd. (1,200.95, -2.74%).

 
Trendlyne Marketwatch
Trendlyne Marketwatch
09 Feb 2023
Market trades higher, IRCTC's net profit rises 22.4% YoY to Rs 255.5 crore

Trendlyne Analysis

Nifty 50, BSE Sensexand the broader Nifty 500closed at 17,893.45 (21.8, 0.1%), 60,806.22 (142.4, 0.2%) and 15,030.10 (1.8, 0.0%) respectively, while the market breadth remained horizontal. Of the 1,947 stocks traded today, 895 were gainers and 983 losers. 

The Adani group will prepay a USD 500 million loan due next month, as several banks steered clear of the refinancing option. Adani group stocks closed in deep red, following the MSCI announcement that it will be making changes to the status of the group's stocks in the index. Meanwhile, France’s Total Energies put its USD 50 billion deal with the Adani group on hold.

Nifty Smallcap 100 and Nifty Midcap 100 closed flat, following the benchmark index. The Nifty Metal closed lower as heavyweight Adani Enterprises fell on the back of the MSCI inquiry. Nifty IT closed in the green, backed by gains in Infosys shares. 

In international markets, major Asian indices closed mixed. US indices futures traded lower as investors expect more rate hikes from the Fed to achieve the desired target of 2% inflation. Tech-heavy Nasdaq 100 closed 1.83% lower on Wednesday. European markets traded in the green as German consumer prices rose to 9.2% in January from a year ago, less than the anticipated 10%. This eased pressure on the European Central Bank to keep raising rates. UK is set to release GDP numbers on Friday, and they are expected to show that the economy flatlined in the fourth quarter, narrowly avoiding recession.

  • Money flow index (MFI) indicates that stocks like Symphony, Blue Star, Procter & Gamble Health and KPIT Technologies are in the overbought zone.

  • French company Total Energies puts its partnership with Adani group’s hydrogen venture on hold after the allegations raised by Hindenburg Research. The partnership was announced in June 2022 and Total Energies was set to have a 25% stake in the project.

  • Commodity Printing/Stationary, IT Training Services, Advertising & Media industries gain over 3% in trade today.

  • Escorts Kubota, Graphite India andAstral’s Q3FY23 net profits fall 6.9%, 59.8% and 26.9% YoY respectively.

  • Trent, Cummins India, Schaeffler India and NHPC are trading above their second resistance or R2 level.

  • HSBC maintains its ‘Buy’ rating on Bharti Airtel with a target price of Rs 970. It expects the company’s return on invested capital (RoIC) to expand on the back of a rise in average revenue per user (ARPU). It adds that the growth outlook is strong due to the 5G rollout.

  • India Railway Catering & Tourism Corp (IRCTC) is rising as its Q3FY23 net profit increases 22.4% YoY to Rs 255.5 crore. Revenue surges 69.9% YoY led by multi-fold growth in the catering segment. The stock shows up in a screener for companies with book value per share improving over the past two years.

  • Hindalco’s Q3FY23 net profit falls 62.9% YoY to Rs 1,362 crore as EBITDA across Novelis (a subsidiary of Hindalco) and the upstream segment dips. However, revenue increases by 5.7% YoY. The stock ranks high on the Trendlyne Checklist score.

  • MRF is falling despite its Q3FY23 net profit rising 17% YoY to Rs 174.8 crore and revenue increasing by 14.7% YoY. The company’s profitability improves amid a significant surge in the cost of materials. The stock shows up in a screener for companies with revenues increasing sequentially for the past four quarters.

  • Analysts expect the RBI to raise interest rates by another 25 bps in April after it expressed concern over the stickiness of core inflation. The RBI also maintained the policy stance at ‘withdrawal of accommodation’.

  • SFK India's net profit rises 31.4% YoY to Rs 116.7 crore in Q3FY23. Growth in revenue and declining employee benefits expenses aid the EBITDA margin to rise by 430 bps YoY. It features in a screener of stocks with improving net profit and profit margin (YoY).

  • One97 Communications (Paytm), CG Power and Industrial Solutions and Mahindra CIE Automotive outperform their sectors in the past month.

  • KRChoksey upgrades its rating on Alembic Pharmaceuticals to ‘Buy’ from ‘Add’ and raises the target price to Rs 704 from Rs 694. This implies an upside of 34.3%. The brokerage believes robust demand in the Indian market and new product launches will offset the price erosion concerns in the US market.

  • Mutual Funds' net inflow grows 2.5X MoM to Rs 11,373 crore in January from Rs 4,491 crore in December 2022, according to data released by the Association of Mutual Funds in India (AMFI).

  • Lupin is rising as it receives US FDA approval for its abbreviated new drug application (ANDA) for glycopyrrolate injection. It is the first approval for the drug manufacturer's new injectable facility in Nagpur. According to IQVIA, the injection had an estimated annual sales of $39 million in the US during CY22.

  • UNO Minda is rising as its Q3FY23 net profit surges 59.9% YoY to Rs 162 crore and revenue rises 33.7% YoY. The growth comes on the back of increasing content per vehicle, a diversified product portfolio and new launches. The stock shows up in a screener for companies with low debt.

  • Trent is rising in trade after reporting a 19.5% YoY increase in net profit to Rs 167 crore. Revenue grows 53.7% on the back of improving customer traction and sales from brands like Westside and Zudio, among others. The company shows up in a screener of stocks with strong annual EPS growth.

  • Indian rupee depreciates to 82.58 from the previous close of 82.49 against the US dollar in early trade today amid continued foreign fund outflows and muted trend of domestic equities.

  • Oberoi Realty's Q3FY23 net profit rises 50.3% YoY to Rs 702.6 crore, while its revenue increases 95.9% YoY. The positive performance is the result of robust sales upon the launch of Tower G in project Sky City. It shows up in a screener for stocks with improving cash flow and good durability.

  • Britannia Industries, Cholamandalam Investment Finance Co and ACC outperform the Nifty 50 index over the week post their Q3FY23 results.

  • Cummins India is rising after reporting an increase in net profit by 66% YoY to Rs 413.8 crore for Q3FY23. Revenue is up 26% YoY, aided by growth in domestic sales and exports. It shows up in a screener for stocks with growth in quarterly net profit and margin YoY.

  • Samvardhana Motherson International’s Q3FY23 net profit surges 85.2% YoY to Rs 453.9 crore as demand recovers in Europe and India. Revenue rises 25.5% YoY, aided by growth in revenue across segments like wiring harnesses, modules and polymer products, among others. It shows up in a screener of stocks with high momentum scores.

Riding High:

Largecap and midcap gainers today include Trent Ltd. (1,341.90, 8.56%), Cummins India Ltd. (1,578.35, 7.06%) and PB Fintech Ltd. (510.30, 5.93%).

Downers:

Largecap and midcap losers today include Adani Enterprises Ltd. (1,925.70, -11.02%), Ambuja Cements Ltd. (357.80, -6.98%) and Adani Power Ltd. (172.80, -5.00%).

Volume Shockers

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

Top high volume gainers on BSE included Trent Ltd. (1,341.90, 8.56%), Cummins India Ltd. (1,578.35, 7.06%) and Gujarat Pipavav Port Ltd. (98.45, 6.49%).

Top high volume losers on BSE were Restaurant Brands Asia Ltd. (99.50, -6.57%), Ircon International Ltd. (55.40, -4.07%) and MRF Ltd. (88,813.05, -3.75%).

Kansai Nerolac Paints Ltd. (417.90, 0.84%) was trading at 9.4 times of weekly average. Godrej Agrovet Ltd. (460.80, 2.45%) and Honeywell Automation India Ltd. (37,910.00, -2.96%) were trading with volumes 8.5 and 7.9 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 5 stocks hit their 52-week lows.

Stocks touching their year highs included - Cummins India Ltd. (1,578.35, 7.06%), Mahindra & Mahindra Financial Services Ltd. (270.40, 0.50%) and NCC Ltd. (92.90, -1.69%).

Stocks making new 52 weeks lows included - Page Industries Ltd. (37,960.15, -3.54%) and Thyrocare Technologies Ltd. (486.65, -0.36%).

18 stocks climbed above their 200 day SMA including Trent Ltd. (1,341.90, 8.56%) and PB Fintech Ltd. (510.30, 5.93%). 14 stocks slipped below their 200 SMA including Honeywell Automation India Ltd. (37,910.00, -2.96%) and Prince Pipes & Fittings Ltd. (595.25, -2.91%).

 
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The Baseline
09 Feb 2023
Screener of the week: MFs and FIIs buying infrastructure-related companies
By Abdullah Shah

We take a look at a screener with key infrastructure companies that are seeing a jump in mutual fund and foreign institutional investor holdings. The companies are from three industries that could benefit from the Union budget – construction & engineering, heavy electrical equipment and roads & highways. 

Out of seven companies, only Ashoka Buildcon is in the screener from the roads and highways industry. Construction & engineering, and heavy electrical equipment industries have three companies each (see chart above). 

TD Power Systems, a heavy electrical equipment manufacturer, rose the highest in MF holding change QoQ, rising 1.22 percentage points to 12.93%. ICICI Prudential Infrastructure Fund bought 2.7 lakh shares (or 0.2% stake) in the company in Q3FY23. 

Among the companies we discussed earlier, KEC International from the construction & engineering industry made it to the list as its FII holding increased by 1.04 percentage points, while its MF holding rose 3 basis points QoQ. Fidelity Funds-India Focus Fund bought 20.2 lakh shares (or 0.8% stake) in the company over the past quarter.

You can find more screeners here,

 
Trendlyne Marketwatch
Trendlyne Marketwatch
08 Feb 2023
Market closes higher, RBI increases its FY23 GDP growth estimate to 7%

Trendlyne Analysis

Nifty 50 closed at 17,871.70 (150.2, 0.9%), BSE Sensex closed at 60,663.79 (377.8, 0.6%) while the broader Nifty 500 closed at 15,028.30 (126.1, 0.9%). Market breadth is in the green. Of the 1,951 stocks traded today, 1,169 were on the uptrend, and 717 went down. The Reserve Bank of India (RBI) raised the key repo rate by an expected 25 bps to 6.5% during the Monetary Policy Committee (MPC) meeting. It also increased its FY23 gross domestic product (GDP) growth estimate from 6.8% to 7%.

Adani Enterprises extended its gains from Tuesday and rose over 20%. However, Adani Total Gas and Adani Green Energy continued their fall and closed at their lower circuits. Adani Wilmar hit its upper circuit post its Q3 results announcement. Nifty Smallcap 100 and Nifty Midcap 100 closed in the green, following the benchmark index. Nifty Metal rose over 3.8% and closed in the green while Nifty FMCG and Nifty Realty closed flat.

In international markets, major Asian indices closed mixed. US indices futures traded marginally lower as investors assess the US Fed Chairman Jerome Powell's speech. European stocks traded higher amid mixed global cues. Crude oil futures recovered from their day’s lows and traded higher due to an mproving economic outlook amid falling inflation.

  • Relative strength index(RSI) indicates that stocks like Procter & Gamble Health, ZF Commercial Vehicle Control Systems India, Persistent Systemsand Mahindra & Mahindra Financial Servicesare in the overbought zone.

  • PB Fintech (Policybazaar) is one of the high-volume top gainer stocks rising more than 6% in trade. It ranks medium on the Trendlyne Checklist score. The consensus recommendation from 10 analysts for the stock is ‘Buy’.

  • One97 Communications (Paytm) is rising as Macquarie upgrades its rating to ‘Outperform’ and raises the target price by 80% to Rs 800. The brokerage says the quality of the company’s loans (post-paid and personal loans) is improving. It adds that the firm has controlled its overall expenses and charges.

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

  • Astral's board recommends a bonus issue of equity shares in the ratio of 1:3 and fixes March 14 as the record date, subject to approval from members of the company.

  • Shree Cements is falling as its Q3FY23 net profit declines 41.5% YoY to Rs 282.1 crore due to higher expenses. However, revenue grows 19.4% YoY as volume sees healthy growth on a YoY basis. The stock shows up in a screener for companies with declining net cash flow.

  • Godrej Consumer Products, Blue Star and Bajaj Finserv outperform the Nifty 50 index over the week post their Q3FY23 results.

  • Talking about the banking sector’s exposure to Adani Group companies, RBI Governor Shaktikanta Das says that Indian banks are strong and resilient and won't be affected by a case like this. Deputy Governor MK Jain adds that domestic banks' exposure to Adani Group is “insignificant”.

  • ICICI Direct upgrades the rating on Elgi Equipments to ‘Buy’ from ‘Hold’ with a target price of Rs 500, implying an upside of 18.1%. The brokerage is positive about the firm’s prospects given an increase in high-margin orders, customer additions and a robust balance sheet. It expects the company’s net profit to grow at a CAGR of 26.1% over FY23-25.

  • Bajaj Finance, LTIMindtree and AstraZeneca Pharma trade above their second resistance or R2 level.

  • Ambuja Cements is rising as its Q3FY23 net profit surges 49.5% YoY to Rs 434.4 crore. Revenue also increases 3.7% YoY with growth in sales volumes and realizations. Raw material and power & fuel costs fall on a QoQ basis. The stock shows up in a screener with improving RoCE for the past two years.

  • RBI’s Monetary Policy Committee projects India’s GDP to grow 5.8% during Jan-March and 6.4% in FY24.

  • Coal and Telecom Services sectors are falling in trade. Meanwhile, Commercial Services & Supplies, Transportation and Hardware Technology & Equipment sectors rise more than 3% today.

  • IT stocks like Coforge, Mphasis, Infosys, LTIMindtree and Tata Consultancy Services are rising in trade. All constituents of the broader sectoral index Nifty IT are also trading in the green.

  • The Reserve Bank of India (RBI) forecasts India’s CPI inflation or retail inflation to be at 6.5% and 5.3% for FY23 and FY24 respectively.

  • Tata Consultancy Services is rising as it bags a contract worth 600 million pounds (Rs 53,227 crore) from the UK-based Phoenix Group. The contract pertains to digitally transforming the life insurance business of ReAssure, a subsidiary of the group.

  • NHPC's Q3FY23 net profit falls 14.2% YoY to Rs 692.7 crore as deferred tax expense rises. Revenue also improves 19.8% YoY. The stock shows up in a screener for companies with increasing profits every quarter for the past two years.

  • Fine Organic Industries, Life Insurance Corp and Alkyl Amines Chemicals weekly average delivery volumes rise ahead of their Q3FY23 results tomorrow.

  • The Reserve Bank of India (RBI) raises repo rate by 25 bps to 6.5% during the Monetary Policy Committee (MPC) meeting.

  • Deepak Nitrite is falling as its Q3FY23 net profit declines 13.8% YoY to Rs 209.1 crore due to higher raw material costs, employee expenses and power & fuel expenses. Revenue rises by 15.6% YoY led by healthy growth in its advanced intermediates segment. The stock shows up in a screener for companies with declining net profits for the past two quarters.

  • Hero MotoCorp is falling despite reporting a net profit rise of 3.2% YoY to Rs 726 crore in Q3FY23. Net profit rises despite a weak demand scenario, especially from rural areas. CFO Niranjan Gupta says that the company’s cost-cutting programmes should improve profitability. The stock ranks medium on the Trendlyne Checklist score.

  • Bharti Airtel’s Q3FY23 net profit falls 26% QoQ to Rs 1,588.2 crore, due to higher operating expenses and license fee-related provisions. However, revenue grows by 19.9% QoQ on ARPU growth. 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 Adani Enterprises Ltd. (2,164.25, 20.04%), One97 Communications Ltd. (675.95, 14.84%) and Zomato Ltd. (54.30, 10.03%).

Downers:

Largecap and midcap losers today include Adani Total Gas Ltd. (1,391.00, -5.00%), Adani Green Energy Ltd. (802.45, -5.00%) and Power Grid Corporation of India Ltd. (212.00, -2.24%).

Movers and Shakers

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

Top high volume gainers on BSE included One97 Communications Ltd. (675.95, 14.84%), Zomato Ltd. (54.30, 10.03%) and Symphony Ltd. (1,047.85, 8.56%).

Top high volume losers on BSE were Navin Fluorine International Ltd. (4,185.05, -2.25%) and Privi Speciality Chemicals Ltd. (875.95, -1.00%).

Thermax Ltd. (2,090.50, 4.55%) was trading at 23.8 times of weekly average. 3M India Ltd. (2,2950.00, 0.22%) and GlaxoSmithKline Pharmaceuticals Ltd. (1,279.00, 3.13%) were trading with volumes 11.3 and 7.4 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

4 stocks hit their 52-week highs, while 10 stocks tanked below their 52-week lows.

Stocks touching their year highs included - Zydus Lifesciences Ltd. (474.00, -1.14%), Mahindra & Mahindra Financial Services Ltd. (269.05, 0.60%) and Jindal Stainless (Hisar) Ltd. (483.05, 0.68%).

Stocks making new 52 weeks lows included - IFB Industries Ltd. (835.00, 3.78%) and Sanofi India Ltd. (5,270.00, -1.11%).

23 stocks climbed above their 200 day SMA including One97 Communications Ltd. (675.95, 14.84%) and CreditAccess Grameen Ltd. (956.60, 6.13%). 6 stocks slipped below their 200 SMA including Bharat Dynamics Ltd. (850.45, -4.33%) and Tejas Networks Ltd. (544.80, -1.74%).

 
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The Baseline
07 Feb 2023
Five analyst picks this week post results
By Abhiraj Panchal

This week in analyst picks we take a look at stocks with YoY revenue and profit growth above 10% in Q3. We also look at forward PE ratio estimates for these stocks one year from now. 

The forward PE estimate is the expected value of earnings to the share price one year ahead. To calculate the FY24 forward PE ratio, we use the Forecaster's target price estimates and annual one-year forward forecaster EPS estimate.

  1. Larsen & Toubro: BOB Capital Markets maintains its ‘Buy’ rating on this construction and engineering company, and raises its target price to Rs 2,440 from Rs 2,390. This indicates an upside of 12.7%. In Q3FY23, the company’s net profit grew 24.3% YoY to Rs 2,552.9 crore and revenue rose 17.3% YoY to 46,389.7 crore. 

Analysts Vinod Chari, Tanay Rasal and Nilesh Patil write that the firm remains “the best play on India’s capex story, and is our preferred capital goods pick.” They believe the company is well-positioned to benefit from the Centre’s push toward infrastructure given its robust tendering pipeline and order win rate of 15–20%. The analysts also see increasing private sector orders as a positive for the company. In Q3FY23, private sector orders accounted for 39% of L&T’s total order inflows, up from 18% a year ago.

Given the robust order pipeline, the analysts anticipate healthy growth in order inflows in the coming quarters. Chari, Rasal and Patil expect the company’s revenue to grow at a CAGR of 16.9% over FY22-24. Larsen & Toubro’s FY24 forward PE estimate is 31.7, higher than the current PE TTM of 30.

  1. Coal India: ICICI Securities maintains its ‘Buy’ rating on this coal mining company and revises its target price to Rs 282 from Rs 294. This implies an upside of 28.6%. In Q3FY23, the firm’s net profit surged by 70.1% YoY to Rs 7,755.6 crore and revenue grew by 23.7% YoY to Rs 35,169.3 crore. 

Analysts Rahul Modi and Anshuman Ashit cite cost increases - driven by higher wage provisioning and contractual expenses - for lowering the target price despite robust results. The analysts do point out that growth was driven by an increase in volumes and realisations. They expect this growth momentum to continue given the strong domestic demand for coal. The analysts expect Coal India’s production volume to touch 700 million tonnes in FY23. They added, “With 9MFY23 production/offtake already at 479 and 509 million tonnes (+15.8%/+5.4% YoY), CIL's volume is poised to reach 700 million tonnes in FY23.”

Given the strong operational performance and with domestic demand for coal remaining strong, Modi and Ashit anticipate the company’s net profit to grow at a CAGR of 11.4% over FY22-25. The forward PE estimate for Coal India stands at 5.3, higher than its current PE TTM of 4.6.

  1. Bajaj Finance: KRChoksey maintains a ‘Buy’ call on this NBFC with a target price of Rs 8,030, indicating an upside of 30.3%. In Q3FY23, the company’s net profit grew by 39.9% YoY to Rs 2,973 crore while its revenue grew by 26.4% YoY to Rs 10,786 crore. 

Abhishek Agarwal said, “Bajaj Finance continued to post strong growth in terms of business and profitability.” He added, “The NBFC has registered the highest-ever customer addition during the quarter.” The analyst is optimistic about the finance company on the back of its strong background, brand name, diversified product offerings, prudent risk management, and long-term potential for robust AUM growth. He expects Bajaj Housing Finance (a subsidiary) to be a core driver for growth in upcoming quarters, led by improving opportunities in the housing finance business. 

Agarwal expects profit and net interest income to grow at 35.1% and 25.4% CAGR respectively, and the asset quality to remain stable. The forward PE estimate for Bajaj Finance is 39.5, which is higher than the current PE TTM of 34.4.

  1. Laurus Labs: ICICI Direct retains a ‘Buy’ call on this pharmaceutical company with a target price of Rs 400. This indicates an upside of 21.2%. In Q3FY23, the company reported an increase of 32.1% YoY in net profit to Rs 203 crore. It reported revenue of Rs 1,546.2 crore (up by 49.5% YoY), which the analysts Siddhant Khandekar, Kushal Shah and Utkarsh Jain believe increased on the back of 210% YoY growth in custom synthesis. 

According to the analysts, the company is well-positioned to meet the fast-growing global demand for new chemical entity drug substances and drug products with ongoing supplies for seven commercial products. They are also positive about the pharma company due to its robust order book, product launches in anti-diabetic (FY23) and CV portfolio in the United States and Europe that have a target opportunity at $40 billion. The forward PE estimate for Laurus Labs is 27.7 as against the current PE TTM of 19.4. 

  1. Westlife Foodworld: Axis Direct maintains its ‘Buy’ call on this fast food restaurant holding company with a target price of Rs 930, indicating an upside of 32.7%. In Q3FY23, the company’s net profit increased by 72.4% YoY to Rs 36.4 crore and its revenue grew by 28.7% to Rs 619.2 crore. 

Analyst Preeyam Tolia believes that same-store sales growth stood at 20% led by increased footfalls, improved product mix and price hikes. His confidence in the restaurant chain holder comes from bright future prospects supported by the company’s strong execution track record of revenue and EBITDA growth, driven by new product launches and cost rationalisation programs. He expects Westlife Foodworld to deliver revenue EBITDA growth of 30% and 43% CAGR, respectively,  over FY22-25. Westlife Foodworld’s forward PE estimate is 104.3 as compared to the current PE TTM of 102.7.

All these stocks have a higher forward PE ratio as the average target share price of these stocks is relatively higher compared to their forward earnings per share.

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

(You can find all analyst picks here)

 
Trendlyne Marketwatch
Trendlyne Marketwatch
07 Feb 2023
Market closes lower, Adani Ports' Q3FY23 net profit falls 16% YoY to Rs 1,315.5 crore

Trendlyne Analysis

Nifty 50closed at 17,721.50 (-43.1, -0.2%), BSE Sensex closed at 60,286.04 (-220.9, -0.4%) while the broader Nifty 500 closed at 14,902.20 (-32.0, -0.2%).

Market breadth is in the red. Of the 1,949 stocks traded today, 777 were on the uptrend, and 1,118 went down. Banking stocks recouped losses after a Fitch rating report noting that Indian banks' exposure to Adani Group would not pose a risk their credit profiles. It added that the economic and sovereign implications of the Adani Group controversy remain limited.

Adani Enterprises closes 14% higher after several days of technical weakness. Adani Wilmar closes in the upper circuit. Adani Green and Adani Power close in the lower circuit. Adani group paid back USD 1.12 billion ahead of schedule to release pledged shares in Adani Ports, Adani Green, and Adani Enterprises.

Nifty Smallcap 100 and Nifty Midcap 100 close in the red, taking cues from the benchmark index. Nifty FMCG closes in the red, led by the heavyweight ITC, as the government weighs stake sale in ITC.

Major Asian indices close in the green, except for Australian ASX All Ordinaries which closed negative. European indices trade in the red as strong US jobs data stoke rate hike fears. US indices futures are also in the red as investors wait for Fed’s commentary on rate hikes.

  • Hindalco Industries sees a short buildup in its February 23 future series as its open interest rises 11.9% with a put-call ratio of 0.32.

  • Fitch Ratings says that Indian banks' exposure to Adani Group is insufficient to risk their credit profiles. It adds that the economic and sovereign implications of the Adani Group controversy are limited.

  • Aditya Birla Fashion and Retail is falling as its Q3FY23 net profit falls 91.7% YoY to Rs 15.8 crore due to higher other expenses, raw material costs and employee expenses. However, its revenue grows by 20.1% YoY driven by its Madura Fashion & Lifestyle segment. The stock shows up in a screener for companies with declining net cash flow.

  • Oil and Natural Gas Corp will explore investing in gas assets in Argentina, according to reports. The company also signs a memorandum of understanding with Argentina’s oil company YPF for hydrocarbon projects. The stock is rising in a volatile market.

  • Canara Bank appoints Satyanarayana Raju as Managing Director and Chief Executive Officer with effect from today.

  • Brent crude oil prices trade above the $80 per barrel mark amid demand recovery in China. Copper, zinc and aluminium prices are falling over demand concerns.

  • Adani Ports & SEZ is rising despite its Q3FY23 net profit falling 16% YoY to Rs 1,315.5 crore on account of higher operating expenses, employee costs and forex losses. Revenue rises 17.5% YoY as its cargo and container volumes increase. The stock shows up in a screener for companies with high promoter stock pledges.

  • FSN E-Commerce Ventures (Nykaa) is rising as Jefferies cuts its target price to Rs 200 from Rs 275 but maintains its ‘Buy’ rating, according to reports. The brokerage says there are rising concerns over urban demand due to a high base and slow hiring in the IT segment.

  • PVR rises after announcing the record date for the transfer of shares to eligible Inox Leisure shareholders as February 17, as part of the PVR-Inox merger. It features in a screener of turnaround companies – loss to profit QoQ.

  • Hindalco is falling as its arm Novalis sees a 95% drop in net profit to $12 million due to high energy and freight costs. Revenue also declines 2.9% YoY on lower sales volumes due to beverage cans destocking by customers.

  • National Aluminium Co, Steel Authority of India and Tata Steel are trading below their second support or S2 level.

  • Economists expect the Reserve Bank of India (RBI) to slow down interest rate hikes as inflation cools. However, a 25 bps hike is expected in the ongoing monetary policy committee meeting.

  • Advertising & Media, Cigarette-Tobacco Products and Commercial Vehicles industries rise more than 8% in the past month.

  • KRChoksey keeps its ‘Buy’ rating on Housing Development Finance Corp (HDFC) and raises its target price to Rs 3,240 from Rs 2,989. This indicates an upside of 21%. The brokerage expects HDFC’s margins to remain stable on the back of improving yields. They see healthy growth in assets under management led by robust housing demand.

  • Vinati Saraf Mutreja, Managing Director & CEO of Vinati Organics, expects the company’s EBITDA margin to be around 30% in FY23. She says it aims for revenue growth of 20% in FY24.

  • Metal stocks like Tata Steel, Hindalco Industries, Vedanta, Steel Authority of India and National Aluminium Co are falling in trade. The broader sectoral index BSE Metal is also trading in the red.

  • Muthoot Finance is falling as its Q3FY23 net profit declines 10.8% YoY to Rs 927.7 crore and revenue dips by 4.6% YoY. However, its consolidated loan assets under management rise on a YoY basis. The stock shows up in a screener for companies with declining RoE over the past two years.

  • Indian rupee appreciates to 82.65 from the previous close of 82.73 against the US dollar in early trade today, due to a weaker greenback in the global markets.

  • LIC Housing Finance rises even as its Q3FY23 net profit falls 37.4% YoY to Rs 480.3 crore on higher finance costs. Interest income is up by 17% YoY. It shows up in a screener of stocks with high momentum scores and undervalued growth stocks.

  • Samvardhana Motherson, Shree Cements and Cummins India rise 8.1%, 7.6% and 4.3% respectively over the past week, ahead of their Q3FY23 results tomorrow.

  • SJVN’s Q3FY23 net profit rises 22% YoY to Rs 287.4 crore as its total revenue increases 16.5% YoY. Revenue from operations improves marginally but revenue from other income goes up 2.5X. The company also reports a surge in finance costs in Q3. It shows up in a screener of mutual funds decreasing shareholdings over the past quarter.

  • Tata Steel posts a net loss of Rs 2,223.8 crore in Q3FY23 compared to a net profit of Rs 9,572.7 crore in Q3FY22 on rising raw material costs and non-cash deferred tax expenses. Revenue declines 6.1% YoY on the back of a slowdown in demand and fall in global steel prices. The stock shows up in a screener for companies with high promoter pledges.

Riding High:

Largecap and midcap gainers today include Adani Enterprises Ltd. (1,802.95, 14.64%), Gland Pharma Ltd. (1,306.85, 11.44%) and Varun Beverages Ltd. (1,304.10, 6.73%).

Downers:

Largecap and midcap losers today include Tata Steel Ltd. (111.45, -5.11%), Adani Green Energy Ltd. (844.65, -5.00%) and Adani Total Gas Ltd. (1,464.20, -5.00%).

Crowd Puller Stocks

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

Top high volume gainers on BSE included Gland Pharma Ltd. (1,306.85, 11.44%), Garware Technical Fibres Ltd. (3,109.80, 5.85%) and Triveni Turbine Ltd. (278.70, 5.61%).

Top high volume losers on BSE were Balaji Amines Ltd. (2,172.40, -5.57%), Adani Green Energy Ltd. (844.65, -5.00%) and Adani Total Gas Ltd. (1,464.20, -5.00%).

Eureka Forbes Ltd. (475.00, 0.81%) was trading at 38.3 times of weekly average. Adani Power Ltd. (173.25, -4.99%) and Hitachi Energy India Ltd. (3,002.35, -3.41%) were trading with volumes 32.7 and 13.5 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

5 stocks took off, crossing 52-week highs, while 15 stocks tanked below their 52-week lows.

Stocks touching their year highs included - Blue Star Ltd. (1,371.50, 0.40%), Britannia Industries Ltd. (4,606.85, -0.41%) and Zydus Lifesciences Ltd. (479.45, 1.98%).

Stocks making new 52 weeks lows included - Adani Transmission Ltd. (1,252.20, -0.34%) and Alembic Pharmaceuticals Ltd. (522.90, -1.02%).

21 stocks climbed above their 200 day SMA including Zensar Technologies Ltd. (245.30, 5.44%) and One97 Communications Ltd. (588.60, 5.43%). 9 stocks slipped below their 200 SMA including LIC Housing Finance Ltd. (376.10, -3.12%) and KIOCL Ltd. (196.80, -2.55%).