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Trendlyne Marketwatch
14 Mar 2023
Market closes lower, IT Dept investigates Cipla on alleged tax violations

Trendlyne Analysis

Nifty 50 closed at 17,043.30 (-111, -0.7%) , BSE Sensex closed at 57,900.19 (-337.7, -0.6%) while the broader Nifty 500 closed at 14,358.55 (-95.9, -0.7%). Of the 1,965 stocks traded today, 519 were in the positive territory and 1,397 were negative.

Indian indices close in the red, as markets globally turn volatile and the crisis around US regional banks continues. Nifty 50 closed below the 17,100 mark on a volatile day of trade. The Indian volatility index, India VIX, rose above 16. The data released by Ministry of Commerce & Industry indicated wholesale price index (WPI) for February fell to two year low of 3.85%, in line with economists expectation of 3.90%.

Nifty Smallcap 100 and Nifty Midcap 100 closed in the red, tailing the benchmark index. Nifty Pharma and Nifty Media closed flat. All other major sectoral indices closed in the red. The Nifty PSU Bank index closed 1.7% lower than Monday’s level, tailing Dow Jones US Banks Index, which closed 7.32% lower on Monday.

Major Asian indices closed lower, tailing US indices, which closed lower on Monday. European Indices trade lower amid weak global cues. US indices futures are trading in the red indicating a negative start for the day. US stocks have reacted negatively in past two trading sessions post the failures of Silicon Valley Bank and Signature Bank in the US

  • Coforge sees a short buildup in its March 29 future series as its open interest rises 12.8% with a put-call ratio of 0.42.

  • Cipla hits a 52-week low as reports suggest that the Income Tax Department is investigating the company for alleged tax violations and avoidance. Initial investigation suggests wrongful tax claims worth Rs 400 crore. The stock is down 15% in the past month.

  • Emami and Lakshmi Organic Industries hit their 52-week lows of Rs 369.2 and Rs 245.6 respectively. Emami has fallen 23.7% in the past year, while Lakshmi Organic went down 41.3%.

  • HCL Technologies trades lower in a volatile market. The stock ranks high on the Trendlyne checklist score and shows up in a screener with improving revenue for the past four quarters.

  • Reports suggest that 1.89 lakh shares (0.26% equity) of Persistent Systems, amounting to Rs 85.5 crore, change hands in a large trade.

  • Tata Consultancy Services, HDFC and Bajaj Finance perform better than their sectors with annual RoA of 27%, 2.3% and 3.3% respectively.

  • Tube Investments of India is rising as it forays into the contract development and manufacturing operations (CDMO) business. It enters into an agreement with N Govindarajan to incorporate a subsidiary to start this CDMO business, subject to shareholders' approval. Tube Investment will invest close to Rs 285 crore in the form of equity and convertible shares.

  • Axis Direct maintains its ‘Buy’ rating on Bharti Airtel with a target price of Rs 855, indicating an upside of 11.5%. The brokerage is positive about the company’s prospects due to its high market penetration, strong digital portfolio and growing average revenue per user. It expects the firm’s net profit to grow at a CAGR of 53.1% over FY22-24.

  • India’s WPI inflation declines from 4.73% in January to 3.85% in February due to a fall in the prices of crude petroleum & natural gas, non–food articles, food products and minerals, among others.

  • IT stocks like Coforge, Mphasis, LTIMindtree and Tech Mahindra are falling in trade. The broader sectoral index Nifty IT is also trading in the red.

  • Bajaj Finance falls for five sessions. The stock ranks high on Trendlyne’s durability score but low on momentum and valuation scores. However, 18 analysts recommend a ‘Buy’, while seven call for ‘Sell’.

  • Macquarie maintains an ‘Outperform’ on Hindustan Unilever with a target price of Rs 3,050. The brokerage says that channel checks indicate a stable demand trend. It expects the company’s EBITDA to grow 12% in Q4.

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

  • Food, beverages & tobacco and metals & mining sectors gain more than 8% in the past six months.

  • Rekha Jhunjhunwala, Rakesh Jhunjhunwala's wife, buys a 5.22% stake in Raghav Productivity Enhancers on Friday.

  • India’s CPI inflation eases slightly to 6.44% in February from 6.52% in January but remains above RBI’s tolerance limit of 6%. Food inflation stands at 5.95%.

  • Surya Roshni is rising as it receives orders worth Rs 96.4 crore from Hindustan Petroleum Corp for the supply of coated steel pipes in Rajasthan, Bihar, Jharkhand and West Bengal. The company shows up in a screener for stocks with consistently high returns over the past five years.

  • Divgi Torq Transfer Systems’ shares list at a premium of 5.1% to the issue price of Rs 590 on its debut on the bourses. The Rs 412 crore IPO has been subscribed for 5.4X the total shares on offer.

  • CreditAccess Grameen Bank continues to fall despite reporting an increase in assets under management from Rs 17,786 crore in Q3FY23 to Rs 20,000 crore till date. So far, the bank has disbursed loans worth Rs 5,000 crore in Q4FY23. It shows up in a screener of stocks with decreasing provisions in recent results.

  • Blackstone sells its 20.5% stake (11.9 crore shares) worth Rs 4,917.4 crore in Sona BLW Precision Forgings in a bulk deal. The shares have been picked up by the Government of Singapore, Societe Generale and HDFC Mutual Fund, among others. In another deal, First Sentier Investment sells a 1.74% stake (12.5 lakh shares) worth Rs 45.7 crore in Mahindra Logistics.

  • Promoter Mahindra and Mahindra sells a 6.1% stake (2.3 crore shares) worth Rs 821.3 crore in Mahindra CIE Automotive in a bulk deal. Mahindra’s holding falls to 3.2% from 9.3% with this sale. Societe Generale picks up shares worth Rs 230.4 crore in Mahindra CIE in another bulk deal.

Riding High:

Largecap and midcap gainers today include Sona BLW Precision Forgings Ltd. (431.40, 6.20%), Gland Pharma Ltd. (1,186.15, 2.75%) and Zee Entertainment Enterprises Ltd. (192.45, 2.20%).

Downers:

Largecap and midcap losers today include Adani Enterprises Ltd. (1,738.20, -7.27%), Bank of India (70.85, -5.85%) and Bandhan Bank Ltd. (206.05, -5.44%).

Volume Shockers

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

Top high volume gainers on BSE included Sona BLW Precision Forgings Ltd. (431.40, 6.20%), Gland Pharma Ltd. (1,186.15, 2.75%) and Bajaj Holdings & Investment Ltd. (6,128.65, 2.00%).

Top high volume losers on BSE were Indian Bank (258.50, -8.46%), Intellect Design Arena Ltd. (403.45, -4.64%) and Coforge Ltd. (3,921.65, -3.99%).

Adani Green Energy Ltd. (706.10, -1.49%) was trading at 9.2 times of weekly average. V-Mart Retail Ltd. (2,379.85, -0.66%) and Century Plyboards (India) Ltd. (497.80, -1.56%) were trading with volumes 8.5 and 7.3 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

1 stock overperformed with 52 week highs, while 49 stocks hit their 52 week lows.

Stock touching their year highs included - Sonata Software Ltd. (834.60, 4.40%).

Stocks making new 52 weeks lows included - Avanti Feeds Ltd. (356.10, -0.57%) and Bayer Cropscience Ltd. (4,056.15, -1.26%).

8 stocks climbed above their 200 day SMA including EIH Ltd. (168.40, 3.92%) and Lemon Tree Hotels Ltd. (77.90, 3.32%). 34 stocks slipped below their 200 SMA including Hitachi Energy India Ltd. (3,261.20, -6.36%) and Eureka Forbes Ltd. (451.00, -3.01%).

 
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Trendlyne Marketwatch
13 Mar 2023
Market closes lower, private banks are falling in trade

Trendlyne Analysis

Nifty 50 closed at 17,154.30 (-258.6, -1.5%), BSE Sensex closed at 58,237.85 (-897.3, -1.5%) while the broader Nifty 500 closed at 14,454.45 (-225.4, -1.5%). Of the 1,982 stocks traded today, 211 were on the uptick, and 1,737 were down.

Nifty 50 fell over 370 points from its day’s high and closed in the red on a volatile day of trade. Gold, a safe-haven asset, extended its gains for the third straight day and traded higher as Silicon Valley Bank (SVB) collapse in the US spooked investors. 

Nifty Smallcap 100 and Nifty Midcap 100 closed sharply lower, following the benchmark index. All major sectoral indices closed in the red. Nifty Bank fell over 900 points and closed 2.3% lower as investors assessed the impact of the SVB collapse on the Indian banking system. 

European indices traded sharply lower, dragged lower by banking sector stocks on concerns of potential contagion from the collapse of SVB. Following the SVB collapse, US regulators shut down Signature Bank on Sunday, making it the third-largest failure in US banking history. Due to the stress on the US banking system, Goldman Sachs expects the US Fed not to deliver rate hikes at its next meeting on March 22.

  • Bosch beats Schaeffler India in YoY profit growth, PE ratio and Price to Book Value. But it lags in YoY revenue growth, MF & FII holdings and one-year price change.

  • Lumax Auto Technologies' arm Lumax Integrated Ventures acquires a majority shareholding in IAC International Automotive India for approx Rs 587 crore, suggest reports.

  • IndusInd Bank, Kalyan Jewellers India, Brightcom Group and NOCIL are trading below their third support or S3 level.

  • Kalpataru Power Transmission and Hindustan Aeronautics touch their all-time highs of Rs 597 and Rs 2,914 per share respectively in a weak market. Kalpataru Power has risen 18.2% in the past 30 days, while Hindustan Aeronautics grew 17.1%.

  • Reports suggest that 27 lakh shares (0.3% equity) of Tech Mahindra, amounting to Rs 310 crore, change hands in early trade today.

  • Shilpa Medicare is falling after US FDA's good manufacturing practice inspection at the company's analytical services division in Hyderabad. Observations of the inspection are related to improvements in existing procedures and are addressable.

  • Private banks like IndusInd Bank, RBL Bank, City Union Bank, Federal Bank and Bandhan Bank are falling in trade. All constituents of the broader sectoral index Nifty Private Bank are also trading in the red.

  • Tata Power’s arm Tata Power Renewable Energy signs a distribution agreement with Tata Power Delhi Distribution for a 510 MW hybrid project. It has a capacity bifurcation of 170 MW from solar and 340 MW from wind power. It will be commissioned within 24 months from the execution date.

  • Macquarie maintains its ‘Neutral’ rating on Axis Bank and ‘Outperform’ on ICICI Bank and IndusInd Bank. The brokerage also raises the target price for most banks. It says low credit costs will lead to multi-year high RoA for the banks.

  • Motilal Oswal maintains its ‘Buy’ rating on Varun Beverages and raises its target price to Rs 1,620 from Rs 1,550. This implies an upside of 21.9%. The brokerage expects the firm’s growth to be driven by the early onset of summer, increased penetration in new markets and higher acceptance of newly launched products.

  • One97 Communications (Paytm) is rising as the number and value of loans disbursed have grown 94% YoY to 79 lakh and 286% YoY to Rs 9,958 crore respectively in January-February. The stock shows up in a screener for companies with revenue increasing sequentially for the past four quarters.

  • Reports suggest that 2.45 crore shares (6.5% equity) of Mahindra CIE Automotive, amounting to Rs 892.6 crore, change hands in a large trade.

  • Media stocks like New Delhi Television, Dish TV India, Network 18 Media & Investments and Zee Entertainment Enterprises are falling in trade. The broader sectoral index Nifty Media is also trading in the red.

  • Tech Mahindra surges as the company appoints Mohit Joshi as its Managing Director and Chief Executive Officer, effective from December 20, 2023. Mohit Joshi is currently the President at Infosys and his tenure ends on June 9, 2023.

  • Indian rupee appreciates to 81.76 from the previous close of 82.04 against the US dollar in early trade today.

  • Hindustan Aeronautics wins an order worth Rs 677 crore from the Ministry of Defence for the supply of six Domier-228 aircraft for the Indian Air Force.

  • Sona BLW Precision Forgings is falling as reports suggest its promoter Blackstone will sell its whole 20.5% stake through a block transaction at a floor price of Rs 400 per share.

  • Mahindra & Mahindra’s total production in February rises 14% YoY to 56,997 units and sales increase 9.5% driven by healthy growth in passenger vehicle sales. However, exports drop 20% YoY. The stock shows up in a screener for companies with improving net cash flows over the past two years.

Riding High:

Largecap and midcap gainers today include Tech Mahindra Ltd. (1,133.80, 6.84%), Adani Transmission Ltd. (949.65, 5.00%) and Adani Total Gas Ltd. (997.05, 5.00%).

Downers:

Largecap and midcap losers today include IndusInd Bank Ltd. (1,060.10, -7.40%), Sona BLW Precision Forgings Ltd. (406.20, -6.90%) and YES Bank Ltd. (15.65, -5.15%).

Volume Shockers

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

Top high volume gainers on BSE included Tech Mahindra Ltd. (1,133.80, 6.84%), Shipping Corporation of India Ltd. (127.45, 5.16%) and Elgi Equipments Ltd. (477.95, 1.91%).

Top high volume losers on BSE were Mahindra CIE Automotive Ltd. (360.20, -8.42%), Kalyan Jewellers India Ltd. (107.70, -7.47%) and Sona BLW Precision Forgings Ltd. (406.20, -6.90%).

Mahindra Logistics Ltd. (362.10, -2.58%) was trading at 9.3 times of weekly average. Sundram Fasteners Ltd. (977.90, -0.32%) and Hindustan Zinc Ltd. (300.45, -1.30%) were trading with volumes 6.5 and 6.3 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 30 stocks were underachievers and hit their 52-week lows.

Stocks touching their year highs included - Cummins India Ltd. (1,668.10, -0.76%), NCC Ltd. (97.50, -1.86%) and Kalpataru Power Transmissions Ltd. (579.40, -0.23%).

Stocks making new 52 weeks lows included - Atul Ltd. (6,844.05, -2.14%) and Avanti Feeds Ltd. (358.15, -1.76%).

6 stocks climbed above their 200 day SMA including Shipping Corporation of India Ltd. (127.45, 5.16%) and Route Mobile Ltd. (1,347.30, -0.07%). 35 stocks slipped below their 200 SMA including IndusInd Bank Ltd. (1,060.10, -7.40%) and YES Bank Ltd. (15.65, -5.15%).

 
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The Baseline
13 Mar 2023
Chart of the week: New internet companies struggle to deliver returns on capital
By Abdullah Shah

Return on capital employed (RoCE) is a financial ratio that determines a company’s ability to use capital to earn profits. Unlike return on equity (ROE), RoCE gives us a more holistic view of the company’s ability to use all of its capital and in order to generate profits.

This week's chart looks at the RoCE of internet software & services companies, from the old to the new. 

The results suggest that older internet companies are more efficient in generating returns from the available capital. Older companies like Tanla Platforms, Affle (India), IndiaMART InterMESH and Info Edge have higher and positive RoCE values, compared to their newer competitors like FSN E-Commerce Ventures (Nykaa), Zomato, PB Fintech and One97 Communications (Paytm). 

One reason for this could be that companies like Affle and Tanla Platforms, which are heavily focused on B2B rather than B2C businesses, had already figured out the optimal business model by the time of their IPO. . Meanwhile, the newer clutch of internet companies are still finding a path to profitability - such as Zomato, which has recently decided to target home services.   

As a result, the new internet companies (except for Nykaa) are loss-making, using up cash for expenses like marketing, user acquisition and to drive growth.

Tanla Platforms’ annual RoCE for FY22 has jumped 200 bps to 48%, which is higher than the average industry RoCE of 25.5. This helped the company’s three-year average RoCE to grow to 23%. 

Affle (India)’s three-year average RoCE is at 25%, compared to its five-year average of 30%. After plunging 9.1 percentage points to 18% in FY22, its current RoCE level is below the industry average.

Most newer internet companies have negative returns on capital employed. Zomato has the lowest five-year average of -41%, However, its three-year average returns have improved to -39%, despite its RoCE declining by 310 bps to -9% in FY22. 

One97 Communications (Paytm) also has a negative five-year average RoCE of -27%. However, its three-year average returns improved by 400 bps, owing to a 6.6 percentage boost in FY22.  

 
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The Baseline
10 Mar 2023
Five Interesting Stocks Today
  1. Hindustan Aeronautics: This defence stock rose over 5% in trade on Wednesday and touched its 52-week high after bagging a contract from the Ministry of Defence. The contract worth Rs 6,800 crore is for the supply of 70 HTT-40 trainer aircraft to the Indian Air Force.

The new aircraft are meant to boost the training program for air force pilots. This aircraft has been on the list of weapons and systems that India imposed an import ban on for the past 30 months. Hindustan Aeronautics will supply these planes to the IAF over a period of six years.

HAL has risen around 15% in the past month and over 112% in the past year. As a result, the company makes it to a screener of stocks with strong momentum. Defence stocks in general, have been on the rise for the past two years due to the Centre’s focus on reducing import of defence equipment and promoting domestic manufacture. The defence industry has risen close to 78% in the past year.

Post this order win, ICICI Direct initiated coverage on the stock with a ‘Buy’ rating and a target price of Rs 3,240, implying an upside of 14%. The brokerage says that HAL has a healthy order book of Rs 84,000 crore on the back of large-scale orders in the manufacturing segment and engines. It expects HAL to achieve revenue and EBITDA CAGR of 10.3% and 14.8% respectively over FY22-25E. While the company has a huge order book, timely order execution will be key going forward.

  1. JSW Energy: This electric utilities stock has had a difficult six months as it fell 23.3% over the period. But it showed a resurgence in the past month and rose 20.45%. The growth came after the company’s Joint Managing Director and Chief Executive Officer (CEO) Prashant Jain spoke about a rise in demand in February and revealed its plans to expand energy generation capacity. This helped the company show up in a screener of stocks which gained more than 20% in the past month.

The stock has been on a rally since Jain said that the company expects energy demand to improve in the summer owing to the El Nino effect, and an impending heat-wave in India from March to May. It rose 12.7% on February 28 and 11.2% over the past week.

According to Prashant Jain, the company witnessed a 7.5%-8%  increase in power demand in February, owing to growth in economic activities like industrial production and manufacturing. He also mentioned the company’s plans to expand its total energy generation capacity to 10 GW by 2025 and 20 GW by 2030, while also planning to generate 80% of the energy capacity through renewable sources by 2030.

  1. G R Infraprojects: After declining more than 17% from February 14 till March 6 and touching its 52-week low on February 28, this roads & highways construction company shows signs of regaining lost ground. The stock has risen 6.5% since March 6, trading at high volumes on Thursday. This upward price momentum came after the firm announced that it received a completion certificate for the construction of an eight-lane expressway for Rs 1,047 crore in Madhya Pradesh. The company also bagged a contract worth Rs 1,248.4 crore for the construction of a six-lane highway in Bihar. It shows up in a screener for stocks in the PE and P/BV buy zone.

The company’s order book as of Q3FY23 stands at Rs 14,073 crore, of which 87% is hybrid annuity mode (HAM) projects and 6% is engineering, procurement & construction projects. The company is also trying to expand into the transmission and railway segments, which currently account for 2% and 4% of the order book respectively.

The management maintains its order inflow guidance at Rs 15,000 crore for FY23 on the back of a strong order pipeline in the roads segment and opportunities in the railways, transmission and ropeways sectors.

  1. Mahanagar Gas (MGL): This city distribution gas stock rose 8.7% in trade on Monday after it announced plans to acquire a 100% stake in Unison Enviro for Rs 531 crore. Ashoka Buildcon and North Haven are the existing shareholders of Unison Enviro and will transfer their shares to MGL once the Petroleum and Natural Gas Regulatory Board waves a green flag. The stock has risen 10% in the past week, touching a new 52-week high on Thursday. Over the past year, the stock went up 31%.

The acquisition will expand MGL’s distribution network in Ratnagiri, Latur and Osmanabad areas of Maharashtra. It will also help expand its presence in Chitradurga and Davanagere in Karnataka. Reports suggest that volumes may increase to 1 mmscmd (million metric standard cubic meters per day) from current volume of 0.1 mmscmd, by FY28, with an investment of Rs 700-800 crore in Unison Enviro. Another benefit for MGL is Raigad’s (a coastal district in Maharashtra) proximity to Ratnagiri, where it has distribution rights. This would give the company an opportunity to expand beyond the Mumbai Metropolitan area.

MGL has posted robust Q3FY23 results with net profit growth of 3X YoY to Rs 172.1 crore. It beat Trendlyne’s Forecaster estimates by 4.4%. With this acquisition, ICICI Securities reiterates its ‘Buy’ rating on the stock but with a revised target price of Rs 1,125, which is 7% over the previous target price of Rs 1,050. It expects EBITDA to grow to Rs 2,100 crore by FY28E.

According to the brokerage, the acquisition looks meaningful in the medium- and long- term. However, its inability to pass on high gas costs and delayed execution of expansion plans are risks to watch out for. 

  1. Bharat Forge Ltd: Thisindustrial products firm has opened an e-bike manufacturing facility with a production capacity of 60,000 units per annum. The facility will handle the assembling of e-bikes for Tork Motors. The promoter group firm, Kalyani Powertrain, owns a 64.3% stake in Tork Motors. Tork Motors is FAME-II approved and has orders for electric commercial vehicle components. The stock remainedflat post the inauguration of the new facility.

Kalyani Strategic Systems Ltd (KSSL), a wholly owned subsidiary of Bharat Forge, won an order worth Rs 600 crore in Q3. The order book for defence exports stands at Rs 2,000 crore. Bharat Forge is also expecting orders for Advanced Towed Artillery Guns (ATAG) in the coming quarters. This gives execution visibility of 2-3 years for KSSL. The industrial segment of Bharat Forge has also won orders for Rs 265 crore, taking the total order book size to Rs 1,500 crore

The company sees increased demand in aerospace component manufacturing. Currently, aerospace contributes less than 10% of revenue. Bharat Forge is the only firm with prerequisite capabilities to build aerospace components in India.

Bharat Forge has completed the acquisition of JS Autocast for Rs 490 crore, adding roughly Rs 450 crore to its revenue. It has also completed the Sanghvi Systems takeover. The two new acquisitions will grow at a CAGR of 35% for the next two years. The stock shows up in a screener with improving cash flows and good durability.

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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Trendlyne Marketwatch
10 Mar 2023
Market closes lower, PV sales rise by 11% YoY in February

Trendlyne Analysis

Nifty 50 closed at 17,412.90 (-176.7, -1%), BSE Sensex closed at 59,135.13 (-671.2, -1.1%) while the broader Nifty 500 closed at 14,679.85 (-124.1, -0.8%). Of the 1,948 stocks traded today, 630 were in the positive territory and 1,250 were negative.

Indian indices extended the losses made in the morning session and closed in the red. Nifty 50 closed below the 17,450 mark on a volatile day of trade. The Indian volatility index, India VIX, rose above 13. Later today, the Central Statistical Organization will release IIP data for January. According to CNBC, January IIP growth is expected to be at 5.25%.

Nifty Smallcap 100 and Nifty Midcap 100 closed in the red, tailing the benchmark index. Nifty FMCG and Nifty Energy closed higher than Thursday’s levels. All other major sectoral indices also closed in the red. The Nifty Bank index closed 1.88% lower than Thursday’s level, tailing Dow Jones US Banks Index, which closed 6.04% lower on Thursday. KNR Construction received a contract worth Rs 690.3 crore from the Karnataka state government.

Major Asian indices closed lower, tailing US indices, which closed lower on Thursday. European Indices trade lower amid weak global cues. On Thursday, US stocks settled in the red, with Dow Jones dropping 1.66% and S&P 500 closing 1.85% lower. Concerns about Silvergate Capital’s shutdown and Silicon Valley Bank's fundraising, coupled with Biden’s statement about taxing the super-rich caused the markets to fall.

  • Relative strength index (RSI) indicates that stocks like Anupam Rasayan India, Blue Star, Finolex Cables and Hindustan Aeronautics are in the overbought zone.

  • Vedanta is falling as rating agency Moody’s Investor Service downgrades the corporate family rating (CFR) of Vedanta Resources to Caa1 from the earlier B3 due to the rise in refinancing risks in debt maturities.

  • KNR Construction receives a contract worth Rs 690.3 crore from the Karnataka government for the construction of an access-controlled four-lane highway. The construction period is 24 months and the operational period after construction is 15 years.

  • Bajaj Auto is rising as Motilal Oswal expects the company to do decently in a weak export market. Bajaj Auto’s foray into a new market like Brazil can be a growth driver. Increasing EV production and sales would also help in improving the company's market share. The stock has gone up 5.5% in the past 90 days.

  • According to data from the Society of Indian Automobile Manufacturers (SIAM), two-wheeler sales increase 7.5% YoY to 11.3 lakh units and passenger vehicle sales rise 11% YoY to 2.93 lakh units in February.

  • Marksans Pharma is rising as it receives the final approval from the US FDA for its abbreviated new drug application (ANDA) of Famotidine tablet. It is used to treat acid indigestion, heartburn and sour stomach. The product is bioequivalent to Pepcid AC tablet, which has sales of over $200 million in the US.

  • Vinod Aggarwal, Managing Director & CEO of VE Commercial Vehicles (VECV), Eicher Motors’ joint venture with Sweden’s AB Volvo, says market share of heavy-duty trucks has improved to 8% from the earlier 6.5%, while it stands at 22%-23% for buses.

  • ICICI Securities maintains its ‘Buy’ rating on TTK Prestige with a target price of Rs 1,000. This indicates an upside of 32.6%. The brokerage is positive about the firm’s prospects as it expects distribution expansion, market share gains and sales volume growth. It anticipates the company’s net profit to grow at a CAGR of 24.4% over FY23-25.

  • Foreign institutional investors invest Rs 5,053.8 crore in the equity market over the past week, according to Trendlyne's FII dashboard. Meanwhile, index options witness the highest inflow of Rs 6,791.3 crore from foreign investors.

  • The Nifty Bank index falls 1.86% today, tailing the Dow Jones US Banks Index, which closed 6.54% lower on Thursday. This comes after Silicon Valley Bank's hasty fundraising and the stock collapsing 60% on Thursday.

  • Ajanta Pharma's board of directors approves the buyback of 22.1 lakh shares (or 2.6% stake) at Rs 1,425 each, amounting to Rs 315 crore. The company shows up in a screener of stocks with improving book value per share over the past two years.

  • Equitas Small Finance Bank is falling as its board of directors approves the allotment of 78.95 crore fully paid equity shares at Rs 10 each to eligible shareholders of the former Equitas Holdings under the scheme of amalgamation.

  • Hinduja Global Solutions, GlaxoSmithKline Pharmaceuticals and Britannia Industries log annual RoE at 78.2%, 63.3% and 59.6% respectively, higher than the past five years.

  • Dredging Corp is rising as it bags a contract worth Rs 64 crore from the Southern Naval Command, Kochi. The order involves the annual maintenance dredging of the naval channel at Ernakulam, Kerala. It shows up in a screener for stocks with improving cash flows from operations over the past two years.

  • Bank of Baroda is falling as it approves the divestment of 49% stake in its wholly owned subsidiary BOB Financial Solutions (BFSL). The bank will invite expressions of interest from investors and strategic partners to acquire Bank of Baroda’s stake in BFSL. The stock is trading below its second support or S2 level.

  • PSU bank stocks like Canara Bank, Union Bank of India, Bank of Baroda, Punjab National Bank and Bank of India are falling in trade. The broader sectoral index Nifty PSU Bank is also trading in the red.

  • Jefferies upgrades its rating on Bharti Airtel to ‘Buy’ with a target price of Rs 900. The brokerage expects Airtel’s Mobile ARPU (average revenue per user) to grow 13% over FY23-25. It adds that the company may gain market share due to 5G rollouts.

  • Zydus Lifesciences is rising as it receives approval from the US FDA for erythromycin tablets. They are used for the treatment of different kinds of infections like diphtheria, intestinal amebiasis and acute pelvic inflammatory disease. According to IQVIA, the tablet had annual sales of $25.1 million in the US during CY22.

  • PSP Projects wins orders worth Rs 123.4 crore in institutional, industrial and residential segments. Total order inflow of the company for FY23 to date stands at Rs 3,415.9 crore. It shows up in a screener of stocks with strong annual EPS growth.

  • Shree Renuka Sugars, Finolex Cables and Power Finance Corp outperform the Nifty 50 index by more than 10% in the past week.

  • NBCC continues to rise as it wins another order from the Indian Institute of Foreign Trade for the construction of a new campus at Kakinada. The estimated cost of this project is Rs 229.8 crore. The stock gains 41.4% from its 52-week low.

  • PNC Infratech bags two highway construction projects worth Rs 2,004.4 crore for the construction of six-lane highways in Bihar. The projects have to be completed in 24 months and operated for 15 years after construction. The stock shows up in a screener for companies with book value per share improving over the past two years.

Riding High:

Largecap and midcap gainers today include Adani Green Energy Ltd. (682.70, 5.00%), Adani Total Gas Ltd. (949.60, 5.00%) and Adani Transmission Ltd. (904.45, 5.00%).

Downers:

Largecap and midcap losers today include Polycab India Ltd. (2,946.95, -4.45%), Adani Wilmar Ltd. (453.50, -4.41%) and Canara Bank (298.20, -3.91%).

Crowd Puller Stocks

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

Top high volume gainers on BSE included Mangalore Refinery And Petrochemicals Ltd. (58.85, 7.39%), KSB Ltd. (2,083.80, 7.07%) and eClerx Services Ltd. (1,484.85, 6.24%).

Top high volume losers on BSE were Equitas Small Finance Bank Ltd. (68.70, -6.21%), Bombay Burmah Trading Corporation Ltd. (874.80, -1.78%) and Aether Industries Ltd. (870.45, -0.32%).

Adani Green Energy Ltd. (682.70, 5.00%) was trading at 9.1 times of weekly average. Thermax Ltd. (2,181.45, 0.01%) and Balkrishna Industries Ltd. (2,025.65, 2.17%) were trading with volumes 6.3 and 6.2 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

5 stocks hit their 52 week highs, while 9 stocks hit their 52 week lows.

Stocks touching their year highs included - Blue Star Ltd. (1,517.50, 0.25%), CCL Products India Ltd. (579.95, 0.00%) and Siemens Ltd. (3,309.05, 0.30%).

Stocks making new 52 weeks lows included - Bayer Cropscience Ltd. (4,120.00, -0.53%) and Gillette India Ltd. (4,593.95, -0.63%).

7 stocks climbed above their 200 day SMA including eClerx Services Ltd. (1,484.85, 6.24%) and Route Mobile Ltd. (1,348.30, 2.84%). 23 stocks slipped below their 200 SMA including Suzlon Energy Ltd. (8.40, -3.45%) and MphasiS Ltd. (2,038.95, -3.13%).

 
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Trendlyne Marketwatch
09 Mar 2023
Market closes lower, Motilal Oswal reduces Mahindra & Mahindra's FY24 EPS estimates by 8%

Trendlyne Analysis

Nifty 50 closed at 17,589.60 (-164.8, -0.9%), BSE Sensex closed at 59,806.28 (-541.8, -0.9%) while the broader Nifty 500 closed at 14,803.95 (-118, -0.8%). Of the 1,948 stocks traded today, 771 were on the uptrend, and 1,117 went down.

Indian indices closed in the red, with the Nifty 50 falling over 160 points and closing below the 17,600 mark on a volatile day of trade. According to Santanu Sengupta, Chief India Economist at Goldman Sachs, RBI is expected to raise the interest rate by 25 bps in March. He estimates India’s February CPI inflation to be at 6.5%. 

Nifty Smallcap 100 and Nifty Midcap 100 closed in the red, following the benchmark index. Most major sectoral indices closed lower than Wednesday’s levels. Nifty Metal closed flat, while Nifty Auto fell over 1.8%, led by Mahindra & Mahindra. M&M fell after Motilal Oswal reduced its FY24 EPS estimates by 8%, owing to a decline in tractor & SUV sales and the adverse impact of losses from new businesses. 

European stocks traded lower, led by Credit Suisse, which fell over 4% after delaying the publication of its 2022 annual report. Most Asian indices closed in the red, following the US indices futures, which continue to trade lower. Brent crude oil futures traded flat after falling over 4% in the past two trading sessions, as investors expect rate hikes to slow global economic growth, which could hurt crude oil demand.

  • Infosys sees a short buildup in its March 29 future series as its open interest rises 2.3% with a put-call ratio of 0.46.

  • HDFC Securities initiates coverage on Syrma SGS Technology with a ‘Buy’ rating and a target price of Rs 294. It expects the PCBAs business segment to clock a CAGR of 38.4% over FY22-26. The company has also announced expansion plans to increase production by FY24.

  • Sonata Software, Carborundum Universal and Triveni Turbine’s stock prices increase 241.7%, 184.7% and 191.7% respectively over the past five years.

  • Mahindra & Mahindra is falling as Motilal Oswal reduces its FY24 EPS estimates by 8%, owing to a decline in tractor & SUV sales and the adverse impact of losses from new businesses. The brokerage maintains a 'Buy' rating on the company, with a target price of Rs 1,525.

  • Auto stocks like Mahindra & Mahindra, Balkrishna Industries, TVS Motor and Tube Investments of India are falling in trade. Broader sectoral indices Nifty Auto and BSE Auto are also trading in the red.

  • Angel One’s client base and average daily turnover surge 52.2% and 97.8% YoY respectively in February. However, its average client funding book and gross client acquisition fall 20.7% and 0.4% respectively.

  • LT Foods is rising as it acquires 56.6 lakh shares of Daawat Foods from United Farmers Investment after receiving approval from the Competition Commission of India on February 14. The company shows up in a screener of affordable stocks with good financials and durability.

  • Jefferies says the recent underperformance by metal companies is a buying opportunity. It expects steel prices in India to expand further. With a 'Buy' rating, Tata Steel and Hindalco are the brokerage's top picks.

  • Glenmark Pharmaceuticals signs an exclusive supply and distribution agreement with Cediprof, a part of Neolpharma Pharmaceutical Group of companies. The company will supply and distribute Cediprof's US FDA-approved variants of amphetamine tablets and the generic version of Adderall tablets.

  • Cummins India and Blue Star reach their all-time highs of Rs 1,681.7 and Rs 1,528 per share respectively. Cummins grows 13.6% over the past month, while Blue Star rises 10.3% in the same period.

  • Metal stocks like Tata Steel, APL Apollo Tubes, Hindalco Industries, JSW Steel and Jindal Steel & Power are rising in trade. All constituents of the broader sectoral index BSE Metal are also trading in the green.

  • Cummins India, Oberoi Realty and Voltas outperform the Nifty 50 index over the month post their Q3FY23 results.

  • Santanu Sengupta, Chief India Economist at Goldman Sachs, expects the RBI to raise the interest rate by 25 bps in March. He estimates India’s February CPI inflation to be at 6.5%.

  • ICICI Securities maintains its ‘Buy’ rating on Jubilant Foodworks with a target price of Rs 630, implying an upside of 36.5%. The brokerage is positive about the company’s prospects on the back of new store launches and the expansion of the Popeyes brand. It expects the firm’s revenue to grow at a CAGR of 19.9% over FY22-24.

  • Reliance Industries’ step-down subsidiary Radisys Corp announces the acquisition of Mimosa Networks for Rs 491 crore on a debt-free and cash-free basis. The company believes that the acquisition will accelerate Jio’s innovation in the production of telecom network products.

  • Religare Enterprises rises in trade as its subsidiary Religare Finvest pays the entire outstanding amount of Rs 2,178 crore to 16 lenders. Once the lenders complete their due diligence, Religare will receive a no-dues certificate. The transaction has been completed three months in advance.

  • Indian rupee appreciates to 81.93 from the previous close of 82.06 against the US dollar in early trade today.

  • Data Patterns (India)'s board of directors approves qualified institutional placement of equity shares with a floor price of Rs 1,284.53 each. The company plans to raise Rs 450-500 crore.

  • JSW Steel is rising as its standalone crude steel production has grown 10% YoY in February to 17.32 lakh tonnes. It shows up in a screener for stocks with improving cash flow from operations in the past two years.

  • Sequent Scientific is up 12% after a deal to acquire 100% stake in Tineta Pharma gets cancelled as the share purchase agreement is not materialised. The deal was signed on November 07, 2022. The stock had hit its 52-week low in the past week.

  • Reports suggest that Clear Wealth Consultancy may sell an 8.25% stake in Gokaldas Exports through a block deal. The amount of transaction is likely to be around Rs 234 crore.

Riding High:

Largecap and midcap gainers today include Adani Green Energy Ltd. (650.20, 5.00%), Adani Total Gas Ltd. (904.40, 5.00%) and Adani Transmission Ltd. (861.40, 5.00%).

Downers:

Largecap and midcap losers today include Adani Enterprises Ltd. (1,953.15, -4.24%), Dixon Technologies (India) Ltd. (2,821.65, -3.27%) and Mahindra & Mahindra Ltd. (1,248.15, -3.24%).

Movers and Shakers

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

Top high volume gainers on BSE included Shilpa Medicare Ltd. (281.00, 11.82%), Rites Ltd. (370.80, 5.67%) and Adani Green Energy Ltd. (650.20, 5.00%).

Top high volume losers on BSE were Home First Finance Company India Ltd. (680.25, -7.79%), Balkrishna Industries Ltd. (1,982.65, -3.14%) and Shoppers Stop Ltd. (644.85, -0.08%).

Linde India Ltd. (4,047.65, 4.19%) was trading at 9.4 times of weekly average. Adani Power Ltd. (195.90, 4.98%) and CCL Products India Ltd. (579.95, 2.61%) were trading with volumes 7.1 and 6.8 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

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

Stocks touching their year highs included - Blue Star Ltd. (1,513.70, 0.84%), Bosch Ltd. (1,8470.85, -1.35%) and CCL Products India Ltd. (579.95, 2.61%).

Stocks making new 52 weeks lows included - Bayer Cropscience Ltd. (4,142.10, -0.15%) and Pfizer Ltd. (3,728.75, -0.32%).

13 stocks climbed above their 200 day SMA including Shriram Finance Ltd. (1,290.40, 1.57%) and Privi Speciality Chemicals Ltd. (1,117.00, 1.27%). 10 stocks slipped below their 200 SMA including Ceat Ltd. (1,427.15, -2.91%) and RHI Magnesita India Ltd. (645.20, -2.23%).

 
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The Baseline
09 Mar 2023
Screener of the week: Outperforming stocks from outperforming sectors in the past quarter
By Abdullah Shah

The stock market has had a bumpy ride in 2023, but there are four sectors that still performed strongly over the past 90 days – fertilisers, food, beverages & tobacco, general industrials and consumer durables. This screener looks at stocks that have outperformed their sectors and the Nifty 50 index. These stocks also have high Trendlyne durability scores. 

Major stocks featured in this screener are The Fertilisers & Chemicals Travancore, Linde India, Blue Star, Siemens,ITC, Polycab India and Cummins India.

The Fertilisers & Chemicals Travancore has risen 71.6% over the past 90 days, outperforming the fertilisers sector by 58.4 percentage points. The stock rose on the back of strong growth in net profit and revenue on a YoY basis in Q3FY23 and the hike in fertilizer prices.

Linde India has outperformed the general industrials sector by 17.9 percentage points. This industrial gas stock rose 20.3%. 

Siemens has grown 16.5% over the past 90 days, outperforming the general industrials sector by 14.1 percentage points, while cooling company Blue Star jumped 19.6%, significantly outperforming consumer durables.  

You can find more screeners here.

 
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The Baseline
08 Mar 2023
Five analyst picks this week
By Abhiraj Panchal

  1. Ceat: Motilal Oswal reiterates a ‘Buy’ call on this tyre manufacturer with a target price of Rs 1,860. This indicates an upside of 28.8%. After visiting its Halol facility and an overview of its research and development centre, analysts Jinesh Gandhi, Amber Shukla and Aniket Desai say the company has showcased its capabilities to scale international business to Rs 35 billion and explore electric vehicles. The tyre manufacturer also indicates improved efficiency at the Halol plant.

According to the analysts, “Cyclical recovery in both OEMs and replacement will enable faster absorption of new capacities and drive operating leverage benefits. This, coupled with softening raw material prices, would help a partial recovery in margins in FY23 and full recovery in FY24.” They remain optimistic as the company continues to focus on key strategic areas as well as expansion in international markets and electric vehicles. In addition, they believe prudent capex plans to be long-term catalysts for Ceat.

  1. KSB: ICICI Direct retains its ‘Buy’ call on this industrial machinery and pump manufacturer company with a target price of Rs 2,390, indicating an upside of 23.3%. According to an institutional investor call arranged by KSB and ICICI Securities on February 28, 2023, the company’s profit has grown 41.9% YoY to Rs 55.9 crore in Q3FY23, while its revenue improved 17.8% YoY to Rs 533.3 crore. KSB has an order intake of Rs 2,045.6 crore for the year ending December 2022. 

Analysts Chirag Shah and Vijay Goel say, “Domestic business is doing better with healthier demand for standard pumps and engineered pumps.” The analysts remain optimistic as nuclear, petrochemical and mechanical seal segments of KSB witness strong traction and the company focuses on increasing its share in services and spares. Shah and Goel expect revenue, EBITDA and profit to grow at 18.1%, 22.1% and 21.6% CAGR respectively over CY22-24, led by strong execution.

  1. Federal Bank: Axis Direct maintains its ‘Buy’ rating on this private bank with a target price of Rs 170, implying an upside of 27%. Analysts Dnyanada Vaidya, Prathamesh Sawant and Bhavya Shah believe the company is well-placed to deliver healthy growth in the medium term as its operational metrics continue to improve. They expect the bank to see robust credit growth, driven by an improvement in the share of high-yielding products. The analysts also see the firm’s improving fee income, moderating operating expenses and improving asset quality as key positives and that “this would result in the bank’s credit costs trends continuing to remain benign”.

Vaidya, Sawant and Shah are upbeat about the bank’s prospects due to its high share of retail-dominated deposits and healthy CASA ratio. The analysts anticipate healthy growth in the medium term due to the company’s expansion plans and its healthy metrics. They expect the bank’s net profit to grow at a CAGR of 15.3% over FY23-25. 

  1. Axis Bank: ICICI Securities maintains its ‘Buy’ rating on this bank with a target price of Rs 1,130. This indicates an upside of 32%. Analysts Chintan Shah and Renish Bhuva believe the company’s acquisition of Citibank’s consumer business in India will enable the bank to capture premium market share growth. The total purchase consideration for the acquisition is Rs 11,603 crore. The analysts say the deal is favourable for Axis Bank as it gets “access to Citibank’s huge retail deposit base, affluent and profitable consumer franchise and strategic synergy benefits over the medium term”.

Shah and Bhuva see this deal as a boost towards the bank’s long-term growth as it aligns with its premiumisation strategy. It gets access to a sizable granular deposit base and an opportunity to cross-sell its products to Citibank’s affluent customers. The analysts expect the company’s net profit to grow at a CAGR of 39% over FY22-24.

  1. Infosys: Bob Capital Markets maintains a ‘Buy’ call on this software and services company with a target price of Rs 1,760, indicating an upside of 18%. Analyst Saptarshi Mukherjee says, “Private 5G is expected to be a key enabler for the digital transformation of enterprises.” He adds that the market for private 5G services in India is likely to be around $570 million by 2026, and the software expense will be materially higher than hardware and services over the next decade.

According to Mukherjee, the company is well-placed to leverage its global 5G expertise to deliver private 5G-as-a-service. “Despite Infosys’ cautious outlook on a few verticals, we believe its strength in managing the twin journey of digital transformation and cost takeout will drive growth leadership,” he concludes.   

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

(You can find all analyst picks here)

 
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Trendlyne Marketwatch
08 Mar 2023
Market closes higher, Power Grid's board approves investments worth Rs 4,071 crore

Trendlyne Analysis

Nifty 50 closed at 17,754.40 (43.0, 0.2%), BSE Sensex closed at 60,348.09 (123.6, 0.2%) while the broader Nifty 500 closed at 14,921.95 (41.0, 0.3%). Of the 1,946 stocks traded today, 1,006 were on the uptick, and 853 were down.

Indian indices recouped the losses made in the morning session and closed in the green. Nifty 50 closed above the key 17,700 mark on a volatile day of trade. The Indian volatility index, India VIX, rose above 12. GQG Partners founder Rajiv Jain indicated further investments in the embattled Adani Group. In February, FIIs sold Rs 10,000 crore worth of equity in the metals, power, oil and gas sectors. 

Nifty Smallcap 100 and Nifty Midcap 100 closed in the green, tailing the benchmark index. Nifty Pharma and Nifty Realty closed lower than Monday’s levels. All other major sectoral indices closed in the green. Nifty IT closed in the red, taking cues from the tech-heavy Nasdaq 100 which closed 1.22% lower on Tuesday. Zee Entertainment entered into an agreement with the Indian Performing Rights Society (IPRS) to settle all claims and disputes. Further, IPRS has withdrawn its insolvency proceedings against Zee. 

Major Asian indices closed lower, except for Japan’s Nikkei which closed 0.48% higher. European Indices trade lower amid weak global cues. Germany’s industrial production rose by 3.5% in January, against the estimates of 1.5%. On Tuesday, US stocks settled in the red, with Dow Jones dropping 1.53% and S&P 500 closing 1.72% lower.

  • Tata Power beats Torrent Power in YoY profit growth, annual RoE, three-year price change and broker average target upside. But it lags in YoY revenue growth, QoQ profit growth, PE ratio and MF holdings.

  • Electric utility stocks like Adani Transmission, Adani Green Energy, Adani Power, NHPC and JSW Energy are rising in trade. All constituents of the broader sectoral index BSE Power are also trading in the green.

  • Larsen & Toubro and Hindustan Aeronautics rise as the Ministry of Defence inks contracts with them for the procurement of three cadet training ships and 70 HTT-40 basic trainer aircraft respectively.

  • NCC rises more than 4% in trade to touch a 52-week high of Rs 100.9. The stock shows up in a screener for companies with high TTM EPS growth. It also ranks high on Trendlyne’s checklist with a score of 73.91%.

  • Sun Pharmaceutical, Hindalco Industries and Marico are trading below their second support or S2 level.

  • Kotak Institutional Equities upgrades its rating on Tata Steel to a ‘Buy’ from ‘Reduce’ with a target price of Rs 130. The brokerage expects the company’s margins to further improve in the coming quarters, after a slight recovery in Q3FY23 on the back of price hikes and stable raw material prices.

  • Linde India, Ajanta Pharma and PNB Housing Finance trade above their third resistance or R3 level.

  • Indraprastha Gas inks a joint venture agreement with Genesis Gas Solutions to set up the country’s first smart meter manufacturing plant. The estimated cost of this project is Rs 110 crore. The plant is expected to be operational by April 2024. IGL touches a 52-week high, despite the market trading in the red.

  • IDBI Capital initiates coverage on Greenply Industries with a ‘Buy’ rating and a target price of Rs 171, indicating an upside of 15.9%. The brokerage believes the company is well-placed to benefit from rising real estate sales in India on the back of its dominant position in the plywood segment and expanding capacity.

  • Antony Cherukara, CEO of VST Tillers Tractors, says the margin guidance for the company has been revised downwards to 11-13%. He adds that the company may launch utility tractors in Q1FY24 and plans to enter the horse power tractor segment.

  • Consumer durables, oil & gas and general industrials sectors rise more than 3.5% in the past month.

  • Power Grid Corp of India's board of directors approves investments of Rs 4,071 crore in the eastern region expansion scheme and the transmission system for the Kurnool wind/solar energy zone.

  • Aurobindo Pharma's arm Eugia Pharma receives US FDA approval for Lenalidomide capsules used for the treatment of multiple myeloma in combination with dexamethasone in adults. The product is bioequivalent and therapeutically equivalent to Revlimid capsules.

  • Kirloskar Oil Engines rises over 16% in trade. Reports suggest that 13% of the company's equity changes hands before the market open.

  • Zee Entertainment rises after it enters into an agreement with the Indian Performing Rights Society (IPRS), an operational creditor, to settle all claims and disputes. Further, IPRS withdraws its insolvency proceedings against Zee. The stock ranks medium on the Trendlyne checklist score.

  • Alembic Pharma gets US FDA approval for hydrochloride capsules used for the treatment of hypertension and low blood pressure. The drug's market size for 12 months ending December 2022 is $50 million, according to IQVIA.

  • JP Morgan maintains its ‘Overweight’ rating on Bajaj Auto with a target price of Rs 4,400. The brokerage says the company’s 2W and 3W exports have fallen 27% year-to-date, while domestic volumes are improving.

  • Hindustan Aeronautics is rising as the defence ministry inks a contract worth Rs 6,800 crore with the company to procure 70 HTT-40 aircraft for the Indian Air Force. The company ranks high on Trendlyne’s Checklistwith a score of 69.57%.

  • NBCC is rising as it wins work orders worth Rs 541 crore for construction in Himachal Pradesh, Jammu & Kashmir and Bhubaneshwar. It has also won a residential accommodation project in New Delhi for Rs 89.9 crore.

  • Ajanta Pharma is rising as its board is scheduled to meet on Friday to consider a buyback of equity shares. It shows up in a screener of stocks with improving book value for the past two years.

  • Allcargo Logistics acquires the remaining 38.9% stake in the contract logistics business from its partner ACCI for Rs 145 crore, at an enterprise value of Rs 373 crore. The company also decides to sell its entire stake in the non-core custom clearance business. The stock shows up in a screener for companies with improving cash flows and high durability scores.

Riding High:

Largecap and midcap gainers today include Hindustan Aeronautics Ltd. (2,863.25, 5.63%), Adani Total Gas Ltd. (861.35, 5.00%) and Adani Transmission Ltd. (820.40, 5.00%).

Downers:

Largecap and midcap losers today include Macrotech Developers Ltd. (932.25, -5.93%), PB Fintech Ltd. (571.55, -3.97%) and Indus Towers Ltd. (160.60, -3.43%).

Volume Rockets

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

Top high volume gainers on BSE included Privi Speciality Chemicals Ltd. (1,102.95, 14.38%), TCNS Clothing Co. Ltd. (489.65, 7.25%) and Shree Renuka Sugars Ltd. (50.60, 7.20%).

Top high volume losers on BSE were Aptus Value Housing Finance India Ltd. (263.55, -6.04%), Medplus Health Services Ltd. (688.30, -2.51%) and Kansai Nerolac Paints Ltd. (408.70, -1.66%).

Balrampur Chini Mills Ltd. (400.35, 6.60%) was trading at 15.0 times of weekly average. Shriram Finance Ltd. (1,270.45, 1.89%) and NCC Ltd. (97.70, 4.38%) were trading with volumes 10.8 and 8.3 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

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

Stocks touching their year highs included - Aegis Logistics Ltd. (391.75, 4.86%), Blue Star Ltd. (1,501.15, 1.32%) and Bosch Ltd. (18,723.95, 3.47%).

Stocks making new 52 weeks lows included - Bayer Cropscience Ltd. (4,140.00, -1.17%) and Gillette India Ltd. (4,634.50, -1.49%).

13 stocks climbed above their 200 day SMA including Balrampur Chini Mills Ltd. (400.35, 6.60%) and EIH Ltd. (170.20, 5.68%). 18 stocks slipped below their 200 SMA including Phoenix Mills Ltd. (1,324.35, -3.73%) and Fortis Healthcare Ltd. (271.50, -3.31%).

 
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Trendlyne Marketwatch
06 Mar 2023
Market closes higher, ICICI Sec keeps its ‘Buy’ rating on Mahanagar Gas

Trendlyne Analysis

Nifty 50 closed at 17,711.45 (117.1, 0.7%), BSE Sensex closed at 60,224.46 (415.5, 0.7%) while the broader Nifty 500 closed at 14,881.00 (106.3, 0.7%). Of the 1,985 stocks traded today, 1,153 were gainers and 748 were losers.

Indian indices extended their gains from Friday and closed in the green, with the Nifty 50 closing above the key 17,700 mark. Among Nifty 50 companies, Britannia Industries fell the most and closed over 2% lower after CLSA downgraded Britannia Industries' rating to ‘Sell’, expecting high wheat and milk inflation to dent margins. 

Nifty Smallcap 100 and Nifty Midcap 100 closed higher, following the benchmark index. Nifty Energy and Nifty Infra closed sharply higher than Friday’s closing levels. Zydus Lifesciences and Alembic Pharmaceuticals closed higher after they received USFDA approvals for their abbreviated new drug applications (ANDAs). 

European stocks traded marginally higher, as investors assessed China's modest economic growth target of 5% this year ahead of the release of Eurozone retail sales data. US indices futures traded flat as investors look ahead to US Fed Chairman Jerome Powell's two-day testimony before the US Congress on Tuesday and Wednesday, ahead of Friday’s jobs report for February.

  • Analysts say that Tech Mahindra has a consensus estimate of 'Strong Buy' in the long term despite a 30% decline in price since March 2022. Analysts believe that its attractive valuation and strong base formation will help in the long term.

  • Money flow index (MFI) indicates that stocks like Anupam Rasayan India, Equitas Small Finance Bank, Procter & Gamble Health and Suprajit Engineering are in the overbought zone.

  • Finolex Cables and Carborundum Universal hit an all-time high of Rs 847.5 and Rs 1,045.7 respectively. Finolex Cables rises for two consecutive sessions, whereas Carborundum Universal falls after hitting an all-time high in today's session.

  • Oberoi Realty beats Phoenix Mills in YoY & QoQ revenue growth, broker average rating and PE ratio. But it lags in YoY profit growth, FII & MF holdings, one-year price change and broker average target upside.

  • Honeywell Automation India, Abbott India, Tata Elxsi and LTIMindtree are trading above their second resistance or R2 level.

  • Delhivery, Zomato and Voltas trade at a distance of 52%, 39% and 30% respectively from their 52-week highs.

  • FSN E-Commerce Ventures (Nykaa) is falling as Macquarie initiates coverage on the stock with an ‘Underperform’ and a target price of Rs 70. The company faces risk in its beauty segment margin growth as it moves towards expansion in small towns. It also sees the company inching towards profitability as Nykaa ventures into mom-and-pop stores.

  • Oil & Gas companies like Adani Total Gas, GAIL (India), Indraprastha Gas, Oil & Natural Gas Corp and Indian Oil Corp are rising in trade. The broader sectoral index BSE Oil & Gas is also trading in the green.

  • Aptus Value Housing Finance gains over 9% in trade today. The company ranks high on Trendlyne’s Checklist with a score of 54.55%. It shows up in a screener for stocks with high Piotroski scores along with high RoE and EPS growth.

  • Power stocks like JSW Energy, Adani Transmission and NTPC are rising more than 2.5% in trade today. The broader BSE Power index also rises over 2%.

  • Manish Raj Singhania, President of FADA, says festivities in March will aid sales growth and adds that they are optimistic about sales in the two-wheeler and passenger vehicle segment as dealers have an inventory level of 30 days. But he emphasizes that the semiconductor crisis is not over yet.

  • ICICI Securities maintains its ‘Buy’ rating onMahanagar Gas and raises its target price to Rs 1,125 from Rs 1,050. This implies an upside of 17.2%. The brokerage remains positive about the company’s prospects as it expects healthy growth in volumes, increased market penetration, and stronger regulatory support.

  • Former RBI Deputy Governor SS Mundra says that banks will soon receive many regulatory guidelines as the RBI has decided to switch to the International Financial Reporting Standards (IFRS) from the Generally Accepted Accounting Principles (GAAP). He adds that the new guidelines for provisions will have a big impact on lenders.

  • Zydus Lifesciences is rising as it receives the final approval from the US FDA for vigabatrin oral solution, which is used to treat refractory complex partial seizures in patients two years of age and older. Its annual sales in the US till December 2022 is $233.7 million, according to IQVIA.

  • Alembic Pharmaceuticals is rising as it receives final approval from the US FDA for its abbreviated new drug application (ANDA) for fluorouracil injection. The injection is used for the treatment of adenocarcinoma of the colon, rectum and breast. It has an estimated market size of $5 million for CY22, according to IQVIA.

  • Bajaj Electricals is rising as it wins a project from South Bihar Power Distribution Co for the development of infrastructure for electric supply for Rohtas, Kaimur, Munger and Lakhisarai districts. The project cost is around Rs 564.8 crore. The consensus recommendation on the stock from 10 analysts is ‘Buy’.

  • CLSA downgrades Britannia Industries' rating to ‘Sell’, expecting high wheat and milk inflation to dent margins. It cuts Britannia’s earnings for FY23-25 by 1-11%.

  • Olectra Greentech rises as its unit Evey Trans wins two orders worth approx Rs 1,000 crore from Telangana State Road Transport Corp for 550 electric buses. The company appears in a screener for stocks with strong annual EPS growth.

  • Hitachi Energy India, LIC Housing Financeand Varun Beverages outperform the Nifty 50 index over the week post their Q3FY23 results.

  • Ashoka Buildcon wins a project from the South Bihar Power Distribution Co for the development of infrastructure for the electric supply circles of East & West Bihar. The contract value is Rs 264.8 crore. The stock is trading above its second resistance or R2 level.

  • Mahanagar Gas will acquire a 100% stake in Unison Enviro from its existing shareholders after getting approval from the Petroleum and Natural Gas Regulatory Board. Existing shareholders include Ashoka Buildcon and North Haven Infrastructure Fund. The transaction amounts to Rs 531 crore.

Riding High:

Largecap and midcap gainers today include JSW Energy Ltd. (269.45, 11.04%), Adani Enterprises Ltd. (1,982.90, 5.50%) and Adani Transmission Ltd. (781.35, 5.00%).

Downers:

Largecap and midcap losers today include Macrotech Developers Ltd. (991.05, -3.64%), Zee Entertainment Enterprises Ltd. (195.40, -2.30%) and GlaxoSmithKline Pharmaceuticals Ltd. (1,295.50, -2.21%).

Volume Rockets

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

Top high volume gainers on BSE included Aptus Value Housing Finance India Ltd. (280.50, 18.63%), Swan Energy Ltd. (293.05, 12.13%) and Mahanagar Gas Ltd. (985.95, 8.72%).

Top high volume losers on BSE were TTK Prestige Ltd. (755.45, -3.40%), Bajaj Electricals Ltd. (1,095.10, -0.70%) and Grindwell Norton Ltd. (1805.05, -0.58%).

Privi Speciality Chemicals Ltd. (964.25, 4.94%) was trading at 15.2 times of weekly average. BASF India Ltd. (2,424.05, 5.59%) and ZF Commercial Vehicle Control Systems India Ltd. (10650.00, 3.54%) were trading with volumes 6.6 and 6.0 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

13 stocks took off, crossing 52-week highs, while 6 stocks tanked below their 52-week lows.

Stocks touching their year highs included - Carborundum Universal Ltd. (997.15, -1.32%), Finolex Cables Ltd. (785.10, 1.19%) and Gujarat Pipavav Port Ltd. (111.15, 3.01%).

Stocks making new 52 weeks lows included - Bayer Cropscience Ltd. (4,190.00, -0.65%) and Cipla Ltd. (880.90, 0.26%).

33 stocks climbed above their 200 day SMA including Manappuram Finance Ltd. (110.40, 4.05%) and Balrampur Chini Mills Ltd. (376.10, 2.93%). 3 stocks slipped below their 200 SMA including Edelweiss Financial Services Ltd. (61.70, -1.28%) and Procter & Gamble Hygiene & Healthcare Ltd. (13,913.15, -1.05%).