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Trendlyne Marketwatch
Trendlyne Marketwatch
30 Jan 2023
Market closes lower, Data Patterns' Q3FY23 net profit surges by 271.3% YoY to Rs 33.3 crore

Trendlyne Analysis

Indian indices closed in the green, with the Nifty 50 rising over 250 points from the day’s low on a volatile day of trade. However, European shares traded lower than Friday's levels. Most Asian indices closed higher except for the Hang Seng index, which closed in the red. On Friday, US stocks closed marginally higher as economic data and guidance from corporate earnings indicated softening demand and cooling inflation. The S&P 500 closed nearly 1% higher while the Dow Jones rose 0.1%. Crude oil prices traded flat following tensions in the Middle East due to a drone attack on Iran and also expected higher oil demand from China.

Nifty Smallcap 100 closed in the red, despite the benchmark index closing in the green. Nifty Energyand Nifty FMCG closed lower than Friday’s closing levels. Nifty IT closed in the green, following the Nasdaq 100, which closed higher on Friday.

Nifty 50closed at 17,648.95 (44.6, 0.3%), BSE Sensexclosed at 59,500.41 (169.5, 0.3%) while the broader Nifty 500closed at 14,854.20 (-20.6, -0.1%)

Market breadth is in the red. Of the 1,986 stocks traded today, 748 were on the uptrend, and 1,181 went down.

  • TVS Motor Cobeats Bajaj Autoin YoY revenue & net profit growth, one-year price change and MF holdings, but lags in PE ratio, annual RoE, one-year dividend yield and quarter price change.

  • Bajaj Finance, Ratnamani Metals & Tubes, KEI Industriesand Radico Khaitanare trading above their second resistance or R2 leveldespite markets trading lower.

  • Keki Mistry, Chief Executive Officer of HDFC, warns of another 25 bps rise in interest rates. He iterates that increasing capital rate tax gains is not a good idea. However, maximum interest, which is tax deductible, needs to be increased, he adds.

  • GAIL India is falling as its Q3FY23 net profit declines 89.1% YoY to Rs 413.8 crore on the back of the purchase of stock in trade surging more than 2X YoY. However, revenue rises 37.3% YoY as the natural gas marketing segment grows 61.1% YoY. The stock shows up in a screener for companies with declining net profit sequentially for the past three quarters.

  • Data Patterns surges more than 10% with high volumes as its net profit grows 271.3% YoY to Rs 33.3 crore. Revenue is up 155% to Rs 11.8 crore in Q3FY23. Srinivasagopalan Rangarajan, Chairman and Managing Director of the company, says, "With the expectation of new orders in Q4, we are focused on improving execution to promote operating leverage and maintaining a diversified order book."

  • The Centre may consider a capital booster worth Rs 4,000 crore for general insurance companies United India, Oriental Insurance and National Insurance in the upcoming budget, say reports. This is to help these insurers meet their solvency needs.

  • Laurus Labs’ Q3FY23 net profit rises 32.1% YoY to Rs 203 crore and revenue increases 50.2% YoY to Rs 1,544.8 crore. This growth is driven by the robust demand in its synthesis and active pharmaceutical ingredient businesses. The stock shows up in a screener for companies with revenue increasing sequentially for the past three quarters.

  • Welspun India enters into a brand licensing agreement with Disney to manufacture and distribute home textile products in the Europe, Middle-East and Africa (EMEA) region, according to reports.

  • AGI Greenpac is surging as its Q3FY23 net profit grows 80.8% YoY to Rs 53.2 crore. A rise in revenue from packaging products aids growth by 43%. EBITDA margin declines marginally by 40 bps YoY owing to rise in employee benefits, fuel and other expenses. The company shows up in a screener of stocks with negative to positive growth in sales and profit with strong price momentum.

  • ICICI Securities upgrades the rating on AIA Engineering to ‘Buy’ from ‘Add’ and raises the target price to Rs 3,258 from Rs 2,994, implying an upside of 22.5%. The brokerage is positive about its prospects given the scale-up in volume, capacity expansion, strong business moat and robust balance sheet. It expects the firm’s revenue to grow at a CAGR of 17.8% over FY22-25.

  • ACC, Max Financial Services andPCBL's weekly average delivery volumes rise ahead of their Q3 results tomorrow.

  • Hinduja Global Solutions is rising as its board of directors approves the buyback of 60 lakh shares for Rs 1,700 each. The company has fixed March 6 as the record date to determine the shareholders eligible for the buyback.

  • Gautam Saraogi, CEO of Go Fashion (India), says the company’s gross margin is at 62% in Q3FY23. He expects volume growth of 5% for store sales.

  • HFCL is rising as it bags orders worth Rs 206.7 crore from Reliance Projects & Property and Reliance Retail to supply optical fibre cables. The company shows up in a screener for stocks with consistently high returns over the past 5 years.

  • Bajaj Finance, Ratnamani Metals & Tubes and Sun Pharma are trading above their second resistance of R2 level in a volatile market today.

  • Genus Power Infrastructures wins order worth Rs 2,855.96 crore for appointment of advanced metering infrastructure service provider, including design of AMI system with supply, installation and commissioning of smart prepaid meters, DT metering, and HT & feeder metering level energy accounting.

  • Morgan Stanley prefers the Indian cement sector over steel. The brokerage maintains its ‘Overweight’ stance on Ultratech Cement and Shree Cements, and ‘Underweight’ on ACC, Jindal Steel & Power and JSW Steel.

  • Power stocks like Adani Transmission, Adani Green Energy, Adani Power and Power Grid Corp of India are falling in trade. The broader sectoral index BSE Power is also trading in the red.

  • Bharat Electronics’ Q3FY23 net profit goes up 2.8% YoY to Rs 613 crore, with revenue rising 11%. However, the cost of materials consumed inches up 10.8% YoY, affecting EBITDA margins which fell 160 bps YoY. It shows up in a screener of stocks with improving RoE for the past two years.

  • Vedanta’s Q3FY23 net profit falls 41% YoY to Rs 2,464 crore, with revenue rising marginally. This is because of weak commodity prices due to drop in zinc and aluminium prices in Q3. However, the company has announced an interim dividend of Rs 12.5 per share for FY23.

  • Bajaj Finance’s Q3FY23 net profit rises 40% YoY to Rs 2,973 crore on the back of increasing net interest income by 24% YoY and a fall in provisions and contingencies. However, asset under management (AUM) is up only 27% YoY due to the slow growth of the mortgage portfolio and B2B loan disbursements. The NBFC shows up in a screener with quarterly growth in net profit and margins.

Riding High:

Largecap and midcap gainers today include Indus Towers Ltd. (146.95, 7.26%), FSN E-Commerce Ventures Ltd. (133.85, 6.31%) and Vodafone Idea Ltd. (6.80, 6.25%).

Downers:

Largecap and midcap losers today include Adani Total Gas Ltd. (2,342.40, -20.00%), Adani Green Energy Ltd. (1,189.00, -20.00%) and Adani Transmission Ltd. (1,708.20, -15.19%).

Movers and Shakers

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

Top high volume gainers on BSE included Aegis Logistics Ltd. (373.60, 11.92%), Adani Enterprises Ltd. (2,892.85, 4.76%) and Ratnamani Metals & Tubes Ltd. (2,092.30, 4.63%).

Top high volume losers on BSE were Adani Green Energy Ltd. (1,189.00, -20.00%), Adani Transmission Ltd. (1,708.20, -15.19%) and EID Parry (India) Ltd. (484.70, -8.62%).

Vedant Fashions Ltd. (1,116.75, -3.63%) was trading at 7.9 times of weekly average. Thermax Ltd. (1,900.85, -0.24%) and Bharat Electronics Ltd. (88.95, -5.67%) were trading with volumes 4.8 and 4.7 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 21 stocks tanked below their 52-week lows.

Stocks touching their year highs included - Aegis Logistics Ltd. (373.60, 11.92%), Carborundum Universal Ltd. (965.55, 2.92%) and Sun Pharmaceutical Industries Ltd. (1,051.70, 0.80%).

Stocks making new 52 weeks lows included - Adani Transmission Ltd. (1,708.20, -15.19%) and Biocon Ltd. (233.45, -0.87%).

14 stocks climbed above their 200 day SMA including Easy Trip Planners Ltd. (52.05, 5.90%) and NLC India Ltd. (78.15, 4.62%). 31 stocks slipped below their 200 SMA including Adani Total Gas Ltd. (2,342.40, -20.00%) and GAIL (India) Ltd. (94.95, -4.24%).

 
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The Baseline
30 Jan 2023
Five analyst picks this week with upgrades in rating or target price
By Suhas Reddy

This week we take a look at analyst picks that saw an upgrade in their target price or rating from brokerages. 

  1. Jindal Steel and Power: ICICI Securities maintains its ‘Buy’ rating on this Iron & Steel Intermediate Products manufacturer and raises its target price to Rs 750 from Rs 605, which indicates a revision of 24%. With the new target price, the upside in the stock stands at 31.3%.

Analysts Amit Dixit, Mohit Lohia and Pritish Urumkar believe the ramp-up in captive thermal coal production and the acquisition of Monnet Power Co’s assets will improve cost efficiencies. They also see an increase in volume due to the company’s logistical advantages and capacity expansion. Although the analysts expect realisations to fall, they see cost efficiencies driving the expansion of margins. 

The analysts add, “Jindal Steel and Power (JSPL) has been the top performer among mainstream ferrous players with a robust return of 45% in the past 3 months.” They anticipate the company’s growth to be driven by cost efficiencies and volume growth. The analysts expect Jindal Steel’s revenue to grow at a CAGR of 9.1% over FY22-24. 

  1. SBI Life Insurance Co: KRChoksey keeps its ‘Buy’ rating on this Life Insurance company and increases its target price to Rs 1,750 from Rs 1,550, a revision of 12.9%. With the new target price, the upside now stands at 42.7%.

Analyst Abhishek Agarwal says the company is trading at an attractive valuation. Even though its Q3FY23 results have been a mixed bag, he expects healthy growth in the coming quarters. The renewal business has seen robust growth along with absolute value of new business (VNB), but the VNB margin contracted due to a higher share of Unit Linked Insurance Plan (ULIP). According to the analyst, “The company had been reporting 30%+ margins in the past few quarters but it contracted in Q3FY23 on the back of a higher share of the ULIP segment.” He believes that the strong margin growth in previous quarters will keep the annual margins healthy at 28-30% in FY23.

Agarwal expects the non-par guaranteed products to continue seeing healthy traction in the coming quarters. He believes that the insurance firm’s net profit will grow at a CAGR of 13.1% over FY22-25.

  1. Canara Bank: Motilal Oswal maintains its ‘Buy’ rating on this PSU Bank and raises its target price to Rs 410 from Rs 300, indicating a revision of 36.7%. The new target price implies an upside of 42.9%. 

Analysts Nitin Aggarwal and Yash Agarwal remain positive on the company’s prospects as it has posted “strong operating performance supported by healthy traction in loan growth and improvement in asset quality, while margin expansion drove NII.” They add that loan growth is also healthy, led by the corporate, retail and agri segments. The improvement in asset quality, led by lower slippages and higher recoveries are seen as key positives by the analysts.

They believe, along with this healthy operational performance, margin expansion and lower provisions have aided in improving profitability. The analysts cite higher NII and lower provisions for raising their net profit estimates by 5% for FY23 and FY24 each. They anticipate the bank’s net profit to grow at a CAGR of 27.4% over FY23-25. 

  1. Supreme Industries: ICICI Direct maintains its ‘Buy’ rating on the Plastic Pipes manufacturer and raises its target price to Rs 2,880 from Rs 2,600, implying a revision of 10.8%. The new target price implies an upside of 12.7%.

Analysts Sanjay Manyal, Hitesh Taunk and Ashwi Bhansali write that the company has posted healthy revenue growth on a YoY basis in Q3FY23, on the back of good volume growth. However, they point out that the margins and net profit are lower YoY but have expanded sequentially. They add that margins will gradually improve as inflation declines.

The analysts believe the company will be a major beneficiary of the Centre’s flagship scheme, ‘Nal Se Jal’, in the long term. They also expect the mix of value-added products in its portfolio to increase in the coming quarters. The analysts say, “Rising contribution of value-added products in the overall top line (increased from 35% in FY18 to ~38% in FY22) will keep the EBITDA margin elevated.” Manyal, Taunk and Bhansali expect the firm’s revenue to grow at a CAGR of 14.1% over FY22-25. 

  1. LTIMindtree: IDBI Capital upgrades its rating on this IT Consulting & Software stock to ‘Buy’ from ‘Hold’ and raises its target price to Rs 5,000 from Rs 4,795, implying a revision of 4.3%. The new target price implies an upside of 13.1%.

Even though the company’s revenue has grown just 1.9% QoQ, analysts Dhevang Bhatt and Dhawal Doshi believe its revenue growth will increase as the merger-related issues iron out. They add, “In terms of synergies, the company is expected to benefit from cross-sell & up-sell opportunities, diversification of portfolio, inorganic growth, end-to-end services, client mining and larger deals.” The analysts also like the IT firm’s focus on winning efficiency deals in legacy and digital, allowing it to save costs.

The analysts note that the firm's cross-sell opportunities and ability to win large deals allow it to sustain healthy revenue growth in the long term. They also see margins improving in the medium term as supply-side pressures ease and operational efficiencies kick in. They expect the firm’s revenue to grow at a CAGR of 17.7% over FY22-25.

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

(You can find all analyst picks here)

 
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The Baseline
27 Jan 2023
Five Interesting Stocks Today
  1. Jindal Stainless: This iron & steel company reached its 52-week high of Rs 263.1 per share on Friday last week, ahead of its results on Monday. The stock has risen 22.7% over the past month. Jindal Stainless’ share price rose almost 1% post its Q3 result announcement, despite its net profit declining 27.8% YoY to Rs 314.3 crore in Q3FY23. However, its net profit beat Trendlyne's forecaster estimates by 22.2%, while revenue beat estimates by 8.5%. Its debt to equity ratio fell 80 bps QoQ to 0.53% in Q3. As a result, the company shows up in a screener of stocks with reducing debt.

According to ICICI Direct, the company has good traction from sectors such as railways, automotive and new generation power plants in the domestic market. Additionally, the withdrawal of export duty is likely to boost premium-range volumes in overseas markets. The brokerage maintains a ‘Buy’ rating on Jindal Stainless with a target price of Rs 300, implying a potential upside of 16.7%.

Jindal Stainless has a high rank in Trendlyne’s checklist with a score of 69.6% and is in the buy zone as its current PE is lower than its historical values and its sector TTM PE.

  1. Coforge: This software and services company has outperformed the benchmark Nifty 50 index by over 10% in the past week, supported by its strong Q3FY23 results. What impressed investors and analysts is the company's net profit beating Forecaster estimates by over 5%. Coforge’s net profit has been rising QoQ over the past eight quarters. In Q3, its net profit rose 13.5% to Rs 228.2 crores, while revenue increased by 4.9%. The company has also announced an upcoming dividend of Rs 19 per share due on February 2. Despite the recent rise in share price due to strong results, Coforge’s TTM PE ratio is trading below its 3-year average PE ratio and its sector PE ratio.

During the Q3FY23 earnings call, Coforge’s management raised its FY23 revenue growth guidance by two percentage points to 22%. It also said that the topline growth in FY24 would be around 15% despite the threat of recession in major economies like the US and Europe. This optimism by management is backed by strong deal wins, which stood at $345 million (highest-ever), up 40% YoY. Another positive factor is Coforge’s attrition rate remaining the lowest in the industry at 15.8% in Q3.

In terms of the geo mix, America makes up over half of the company’s Q3 revenue. Notably, growth from this region is only marginally higher at 1.9% QoQ, impacted by furloughs. However, top-line growth is driven by EMEA (Europe, Middle East, Africa) and ROW, which have grown 6.7% and 5% respectively.

  1. IDFC First Bank: This bank stock has not particularly enthused investors, even though its net profit doubled (2.15X YoY) to Rs 605 crore in Q3FY23. However, it beats Trendlyne’s Forecaster estimates by 7.9%. Over the week, the stock has gone down nearly 4% in trade. It fell nearly 3.5% on Wednesday as the market traded lower. However, the stock has grown more than 55% in the past six months as it reports a continuous improvement in its financials. The bank shows up in a screener of undervalued growth stocks.

IDFC’s net interest income has surged 28% YoY to Rs 3,285 crore in Q3. Asset quality also sees vast improvement, with gross and net NPAs falling 100 bps YoY to 2.96% and 71 bps to 1.03% respectively. It shows up in a screener of stocks with good quarterly growth in recent results. Although provisions increased 15% YoY in Q3, causing the provision coverage ratio (PCR) to rise to 76.6%, the outlook remains positive as PCR on the higher side means that the bank is well buffered against bad assets. The bank’s PCR ratio has improved across all loan books – corporate, retail and commercial.

Analysts from ICICI Securities and Motilal Oswal recommend the stock with a ‘Hold’ and ‘Buy’ ratings respectively. CLSA has also upgraded its rating to ‘Buy’ from ‘Outperform’. It expects the stock price to rise by 19% in the short to medium term. IDFC is firing on all cylinders with analysts expecting fee income to improve, and credit cost to lower in FY23-24E. Its management expects to achieve credit cost guidance of less than 1.5% for FY23. They also expect loan growth of 25% and maintain a net interest margin of 5.8-6%.

  1. Sona BLW Precision Forgings: This auto parts & equipment manufacturer rose over 5% on Wednesday after announcing its Q3FY23 results. Its net profit has risen 23.9% YoY to Rs 107.1 crore, beating Trendlyne’s forecaster estimates by 13.6%. The company beating the street’s estimates makes investors upbeat about the stock. Its revenue rose 38.6% YoY on the back of robust growth across all its business segments. Given its healthy performance, the stock shows up in a screener for companies with revenue increasing sequentially for the past four quarters. Also, the stock is currently in the PE Buy zone.

The firm’s robust order book growth has been instrumental in its Q3 performance. Its order book touched 23,800 crore, rising 16.1% QoQ and 35.2% YoY, with new deal wins worth Rs 4,200 crore. During the quarter, Sona BLW won its single largest new order worth Rs 3,350 crore from a global electric vehicle original equipment manufacturer (EV OEM). The project is estimated to be executed in 8-9 years, implying an annual revenue potential of Rs 400 crore, according to ICICI Securities.

The company’s EBITDA margin expanded by 76 bps YoY to 27.2%, led by a favourable product mix as its Battery Electric Vehicle segment’s contribution to revenue moved up to 26%. The firm aims to increase market share in the high-margin EV segment in the coming quarters, which it believes will improve profitability and revenue growth. ICICI Securities expects Sona BWL’s margins to rise till FY25 due to an increasing mix of EV orders, falling commodity costs, rising scale and benefits from the Production Linked Incentive (PLI)  scheme.

  1. KEI Industries: This electrical stock has increased by 32.79% CAGR in the past five years, beating the broader Nifty 500 index by a huge margin. The stock has risen 1.4% after the Q3FY23 results announcement. KEI industries is among India’s top three wire and cable manufacturers, with a product portfolio ranging from housing wires to Extra High Voltage (EHV) cables. KEI derives 85% of its revenue from cables, 10% from EPC, and 5% from wires.

    In Q3, KEI industries reported 14% revenue growth, led by 20% increase in cable business volume. Its EBITDA margin has expanded 90 bps YoY. The management foresees no immediate impact of ongoing raw material cost volatility and expects channel inventory to remain at normal levels. PAT has grown 26.96% YoY to Rs 1,288 crore and the management guides 18-20% revenue growth in FY23, backed by pending orders to the tune of Rs 3,400 crore. Pending orders also rose by 14% QoQ in Q3FY23.The stock shows up in ascreener for companies that are efficiently managing assets to generate profits.

Management has guided for a Rs 500 crore plus order book in FY24 with 15% growth in revenue in FY24. The EBITDA margin is expected to be maintained at current levels of 11%. It also sees a capital expenditure to the tune of Rs 250 crore in FY24. Of this, Rs 50 crore is earmarked for brownfield expansion and the rest would be for working capital requirements.

BOB Capitalsees structural growth drivers for KEI as the margin-accretive retail business scales up and as its core cables and EPC businesses benefit from sectoral tailwinds in the form of increased private and public capex.

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

 
Trendlyne Marketwatch
Trendlyne Marketwatch
27 Jan 2023
Market closes lower, Sterlite Technologies' Q3FY23 net profit grows 17% QoQ to Rs 77 crore

Trendlyne Analysis

Indian indices closed in the red, with the volatility index, India VIX, soaring above 17%. Nifty 50 fell over 280 points and closed just above the 17,600 mark. European stocks traded higher than Thursday’s levels. Australia’s ASX All Ordinaries and Japan’s Nikkei 225 indices closed in the green, taking cues from the US indices, which closed in the green on Thursday.

The US economy grew at an annual rate of 2.9% in the fourth quarter beating analysts’ expectations by 30 basis points. The tech-heavy Nasdaq 100 rose 2% led by heavyweight Tesla, which rose over 10% after the company released its quarterly results. S&P 500 closed 1.1% higher while the Dow Jones increased by 0.6% on Thursday. Brent crude oil futures have remained flat this week after rising over 10% in the previous two weeks before the current week as China's reopening continues to better the crude oil demand.

Nifty Smallcap 100 and Nifty Midcap 100 closed in the red, following the benchmark index. Nifty Energy and Nifty Metal closed over 4% lower than Wednesday’s levels. Adani group stocks plunge, extending a sell-off triggered by fraud allegations from Hindenburg Research on Wednesday. Nifty IT trade flat, taking cues from the tech-heavy Nasdaq 100 index, which rose 2% on Thursday.

Nifty 50 closed at 17,604.35 (-287.6, -1.6%) , BSE Sensex closed at 59,330.90 (-874.2, -1.5%) while the broader Nifty 500 closed at 14,874.75 (-297.2, -2.0%)

Market breadth is highly negative. Of the 1,954 stocks traded today, 265 were gainers and 1,666 were losers.

  • Adani Ports, Ambuja Cements and Adani Enterprises plunge 15.2%, 12.3% and 18.3% in trade today. Adani Enterprises' follow-on public offer (FPO) opened today.

  • Money flow index (MFI) indicates that stocks like Max Financial Services, NHPC, Sonata Software, Jindal Stainless and Persistent Systems are in the overbought zone.

  • Sterlite Technologies' net profit grows 17% QoQ to Rs 77 crore in Q3FY23 as revenue rises 12% QoQ. However, EBITDA margin falls 50 bps QoQ. Ankit Agarwal, Managing Director of the company, says, “Our performance this quarter has been strong. Sharp focus on cash and profitability, and calibrated exits from sub-scale businesses have poised us for long-term growth."

  • RBI Governor Shantikanta Das says that India's core inflation remains elevated but is seeing a gradual decline. He iterates that India's financial system continues to remain robust and stable.

  • Oil & Gas stocks like Adani Total Gas, Hindustan Petroleum Corp and Bharat Petroleum Corp fall more than 3% in trade. The broader Nifty Oil & Gas index also falls 6%.

  • Adani Power falls more than 5%, hitting a lower circuit in trade today. This comes after a foreign financial forensic firm Hindenburg raised concerns over the company’s financials and debt positions. The stock has a low momentum score and shows up in a screener for the highest increase in pledges by promoters.

  • Metal stocks like Hindalco Industries, Steel Authority of India and Vedanta fall more than 2.5% in trade. The broader Nifty Metal index falls more than 3% and is trading in the red.

  • Foreign institutional investors pull out Rs 943 crore from the equity market over the past week, according to Trendlyne's FII dashboard. Meanwhile, index options receive the highest inflow of Rs 69,022.6 crore from foreign investors.

  • Samvardhana Motherson International’s board approves the acquisition of a 51% stake in Saddles International Automotive and Aviation Interiors for Rs 207 crore. Saddles is into manufacturing premium upholstery like seat covers for passenger vehicles, and gear knob covers, among others. It shows up in a screener of stocks with upcoming results and previous quarter net profit growth greater than 10% YoY and QoQ.

  • Vodafone Idea, Suzlon Energy and Indian Overseas Bank trade below their second support or S2 levels in a weak market.

  • HDFC Securities maintains its ‘Buy’ rating on SBI Cards and Payment Services but lowers the target price to Rs 1,020 from Rs 1,196. The revised target price implies an upside of 44.8%. The brokerage cites a lower share of revolving loans and a sharp fall in NIM for the revision. However, it remains positive on the firm given its industry-leading pace of credit card issuances, sustained traction in unit spending and market share gains.

  • Christopher Wood, Global Head of Equity Strategy at Jefferies, says that India is at risk due to increased positions in China but remains the best long-term investment option in Asia.

  • Coforge, Sona BLW Precision Forgings and Bajaj Auto outperform their industry by 10.16%, 13.4% and 4.9%, respectively, in the past month.

  • Happiest Minds acquires a 100% stake in Sri Mookambika Infosolutions for a cash consideration of Rs 111 crore. Sri Mookambika Infosolutions is a Madurai-based IT services company. It believes this acquisition will strengthen its offerings in the healthcare vertical, with delivery capabilities in tier-two cities like Madurai and Coimbatore.

  • KPIT Technologies, UPL and Sun Pharmaceuticals rise 2.6%, 2.9% and 0.5% respectively over the past week, ahead of their Q3FY23 results on January 31.

  • Dr. Reddy’s Labs is rising after reporting a surge in net profit by 77% YoY to Rs 1,247 crore. Revenue rises 27%, fueled by the sale of ‘Revlimid’ drug. Meanwhile, Torrent Pharma is falling even though its Q3 net profit rises 14% YoY to Rs 283 crore, with India revenue growing 17%. The company declares an interim dividend of Rs 14 per share for FY23.

  • Morgan Stanley gives Tata Elxsi an 'Underweight' rating with a target price of Rs 5,800. This implies a potential downside of 12.1%, as its embedded product design (EPD) business declines for the fifth quarter due to layoffs and project deferments.

  • Ceat posts a net profit of Rs 34.8 crore against a loss of Rs 20 crore in Q3FY22. Its revenue increases 13% YoY in a seasonally weak quarter because of price hikes taken earlier and a reduction in raw material costs QoQ. Gross margin improves by 203 bps QoQ in Q3. However, exports take a hit because of global headwinds.

  • DLF is rising as its Q3FY23 net profit is up 36.8% YoY to Rs 519 crore. But revenue falls 3.5% on the back of increasing expenses. The residential business sees improvement with an increase in new sales bookings by 24% YoY. The company shows up in a screener of stocks with improving RoA for the past two years.

  • Tata Motors is back in the black after seven quarters of loss, with a net profit of Rs 2,957.7 crore in Q3FY23. Profitability drastically improves due to higher realisations, softening commodity prices and better pricing. Revenue rises 22.5% YoY to Rs 88,488.6 crore on the back of robust demand, higher sales volumes and an improving supply of semiconductors. The stock shows up in a screener for companies with growth in net profit and increasing profit margin YoY.

Riding High:

Largecap and midcap gainers today include Tata Motors Ltd. (445.60, 6.34%), Bajaj Auto Ltd. (3,936.75, 5.90%) and Supreme Industries Ltd. (2,538.95, 5.18%).

Downers:

Largecap and midcap losers today include Adani Total Gas Ltd. (2,928.00, -20.00%), Adani Transmission Ltd. (2,014.20, -20.00%) and Adani Green Energy Ltd. (1,486.25, -20.00%).

Crowd Puller Stocks

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

Top high volume gainers on BSE included Tata Motors Ltd. (445.60, 6.34%), Bajaj Auto Ltd. (3,936.75, 5.90%) and Supreme Industries Ltd. (2,538.95, 5.18%).

Top high volume losers on BSE were Adani Transmission Ltd. (2,014.20, -20.00%), Adani Green Energy Ltd. (1,486.25, -20.00%) and Dixon Technologies (India) Ltd. (2,721.80, -19.09%).

TTK Prestige Ltd. (802.80, 2.80%) was trading at 16.7 times of weekly average. Nuvoco Vistas Corporation Ltd. (353.50, -2.31%) and SIS Ltd. (370.75, -1.84%) were trading with volumes 15.2 and 11.3 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

42 stocks hit their 52 week lows.

Stocks making new 52 weeks lows included - ACC Ltd. (1,879.75, -13.20%) and Adani Ports & Special Economic Zone Ltd. (596.95, -16.29%).

9 stocks climbed above their 200 day SMA including Tata Motors Ltd. (445.60, 6.34%) and Bajaj Auto Ltd. (3,936.75, 5.90%). 50 stocks slipped below their 200 SMA including Adani Total Gas Ltd. (2,928.00, -20.00%) and Adani Enterprises Ltd. (2,761.45, -18.52%).

 
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The Baseline
26 Jan 2023
Screener of the week: PLI beneficiary companies that are rising ahead of the Union Budget
By Abdullah Shah

Just days ahead of the Union Budget, we take a look at companies that are benefitting from the government’s PLI scheme. This screener reflects stocks that have risen over the past month ahead of the budget, which are beneficiaries of PLI schemes.

Textile stocks like SVP Global Textiles, Donear Industries and Rajesh Exports are three of the 61 applicants approved under the PLI scheme and have risen the highest over the past month. The government has proposed an expected investment of Rs 19,077 crore from the applicants, with a projected turnover of Rs 1.8 lakh crore and proposed employment of 2.4 lakh. 

In Metals & mining, Sunflag Iron & Steel and Lloyds Metal & Energy have been approved. While Sunflag Iron & Steel rose 40.3% over the past month, outperforming the sector by 27 percentage points, Lloyds Metal & Energy went up 39.4%, outperforming the sector by 26.1 percentage points.

Surya Roshni from the general industrials sector has committed an investment of Rs 25.4 crore towards the PLI scheme. The stock has risen 37.1% over the past month, outperforming the sector by 30.7 percentage points. 

You can find more screeners here.

 
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The Baseline
25 Jan 2023
Chart of the week: India’s ten highest-paid CEOs
By Abdullah Shah

Chief Executive Officer (CEO) salaries are a hot topic and closely followed by both investors and analysts. An extremely generous pay package can be routine for an industry, or a red flag for a low-performing company, suggesting corporate governance norms in the business are weak. 

In this edition of chart of the week, we look at India’s 10 highest-paid CEOs and their remuneration as a percentage of the company’s net profit, according to Trendlyne’s new CEO Salary dashboard. 

This interactive dashboard on Trendlyne looks at the total remuneration of senior employees (including CEOs and directors) in the industry. The remuneration is inclusive of benefits like ESOPs.

The IT sector is known for highly paid CEOs and it is reflected in the chart as well. Six of the 10 highest-paid CEOs are from the IT sector. Yashish Dahiya, Chairman, Executive Director and CEO of loss-making PB Fintech (PolicyBazaar), tops the list with a remuneration of Rs 613.8 crore. It constituted 39.6% of the company’s annual revenue in FY22 (keep in mind ESOPs are a big part of remuneration for listed startups, and the value of shares is tied to company performance). The company posted losses during the same period. As per the company’s FY22 annual report, in the scenario of the company incurring losses, Yashish Dahiya is subject to receive ESOP 2020 and 2021 as minimum remuneration. 

Vinay Vinod Sanghi, Chief Managing Director and CEO of CarTrade Tech, received a remuneration of Rs 176.6 crore, which comes to almost half of the company’s annual revenue in FY22.

Thierry Delaporte, Managing Director and CEO of Wipro, got Rs 79.8 crore after an increment of 24% in 2022. Salil S Parekh, Managing Director and CEO of Infosys, got a remuneration of Rs 71 crore after four consecutive increments of 327.9%, 1.2%, 188.3% and 43% in 2019, 2020, 2021 and 2022 respectively. Infosys used to be known in the industry for its lower pay scale for management, with the founders arguing that the CEO salary relative to the median employee shouldn’t be too high. That has clearly changed - Parekh is one of the highest paid CEOs in India.

CP Gurnani, Managing Director and CEO of Tech Mahindra, received Rs 62.7 crore, which constituted 1.1% of the company’s net profit in FY22. He received two increments of 304.5% in 2021 and 335.4% in 2022. Sandeep Kalra, Executive Director and CEO of Persistent Systems, earned Rs 46.9 crore, which was 6.8% of the company’s net profit. 

Two CEOs from the 2-3 wheeler industry also feature in the top 10 list. Pawan Munjal, Chairman and CEO of Hero MotoCorp, earned a remuneration of Rs 84.4 crore, constituting 3.6% of the company’s profit. Managing Director and CEO of Bajaj Auto, Rajiv Bajaj, received Rs 45.6 crore constituting 0.74% of the company's profit.

Another notable name in the list is Punit Goenka, Managing Director and CEO of Zee Entertainment Enterprises. He received a remuneration of Rs 41.1 crore, making up 4.3% of the company’s net profit. After taking a pay cut during the Covid pandemic in 2020, he received two increments of 46% in 2021 and 212.2% in 2022.

You can find more details on the remuneration of CEOs and directors on Tredlyne’s newly launched Salary Dashboard. 

 
Trendlyne Marketwatch
Trendlyne Marketwatch
25 Jan 2023
Market closes lower, Cipla's Q3FY23 net profit rises 9.3% YoY to Rs 801 crore

Trendlyne Analysis

Nifty 50 closed in the red, falling below the 17,900 mark. Australia’s ASX All Ordinaries closed lower than Tuesday’s levels and Japan’s Nikkei 225 indices closed in the green. Many other Asian markets remain closed for Lunar New Year celebrations. European indices trade in the green. US indices bounced back from losses in the early session and closed flat on Tuesday. Investors look ahead to Q3FY23 earnings from major companies this week. Brent crude oil futures trade in the green and are heading into a third straight weekly gain.

Nifty Smallcap 100 and Nifty Midcap 100 close in the red and are down more than 1%, following the benchmark index. All other major sectoral indices close lower than Tuesday’s closing levels. Nifty IT closes in the red, taking cues from the tech-heavy Nasdaq 100, which closed 0.22% lower on Tuesday.

Nifty 50 closed at 17,891.95 (-226.4, -1.3%) , BSE Sensex closed at 60,205.06 (-773.7, -1.3%) while the broader Nifty 500 closed at 15,171.95 (-216.6, -1.4%)

Market breadth is overwhelmingly negative. Of the 1,955 stocks traded today, 473 were on the uptick, and 1,426 were down.

  • ICICI Bank beats HDFC Bank in YoY and QoQ net profit growth, PE ratio, MF holdings and broker average target upside. But it lags in YoY and QoQ revenue growth, annual RoE, one-year price change and broker average rating.

  • Aurobindo Pharma touches its one-year low of Rs 416.65 today. The stock has a medium ranking on Trendyne’s checklist, with a score of 39.13%. The stock shows up in a screener for companies with net profits declining sequentially for the past four quarters.

  • Pidilite Industries, Godrej Consumer Products and Ambuja Cements are trading below their third support or S3 level as the market trades lower.

  • Cipla is falling despite its Q3FY23 net profit rising 9.3% YoY to Rs 801 crore on the back of a 14.8% YoY decline in the cost of materials consumed. Revenue grows 6% YoY as its pharmaceuticals segment rises 3.9% YoY. The stock shows up in a screener for companies with declining net cash flows.

  • Axis Bank, ICICI Bank and IDBI Bank’s operating profit margin and growth rise QoQ and YoY in Q3FY23.

  • Tarun Sawhney, Vice-Chairman and Managing Director of Triveni Engineering, says there is margin expansion for all segments except sugar. He adds that sugar prices will rise in Q4FY23 and aid margin expansion in the segment. The profitability of the company’s sugar business is lower in Q3.

  • ICICI Securities upgrades its rating on Shoppers Stop to ‘Buy’ from ‘Add’ with a target price of Rs 850. This indicates an upside of 29.7%. The brokerage believes the company presents a turnaround opportunity. It cites the firm’s increased focus on private-label brands, growth in its beauty segment and category extensions for revising its rating.

  • Indus Towers, Motilal Oswal Finance and Colgate-Palmolive India's Q3FY23 net profit falls QoQ and YoY

  • Rail Vikas Nigam bags an order worth Rs 38.4 crore for the provision of automatic block signalling in the Arakkonam junction-Nagari section of the Chennai division in Southern Railway. The company ranks high on the Trendlyne checklist with a score of 69.57%.

  • Power stocks like CG Power and Industrial Solutions, NTPC, Power Grid Corp of India, NHPC and JSW Energy are falling in trade. The broader sectoral index BSE Power is also trading in the red.

  • India's FII flows stand net negative at $1,850 million in the first half of January. The financial services sector sees the largest outflow of $823 million, while the materials sector has the largest inflow of $287 million.

  • PSU banks like Bank of Baroda, Bank of India and Canara Bank fall more than 5% in trade. The broader Nifty PSU Bank index falls 4.4% in trade.

  • United Spirits is plunging as its Q3FY23 net profit falls 27.4% YoY to Rs 214.2 crore. Revenue dips 25.9% YoY, causing the EBITDA margin to decline by 20 bps YoY. The company shows up in a screener of stocks with declining quarterly net profit and profit margin (YoY).

  • Nazara Technologies is rising as its Q3FY23 net profit surges 77.5% QoQ to Rs 18.1 crore. Revenue rises 19.3% QoQ, driven by the esports and gamified early learning segments. The stock shows up in a screener for companies with improving cash flows and high durability scores.

  • Tata Steel is rising as 84.3 lakh shares (0.7% equity) amounting to Rs 101.8 crore change hands in a large trade.

  • Max Financial Services, Coal India and C.E. Infosystems rise 5.8%, 5.4% and 5.3% respectively over the past week, ahead of their Q3FY23 results on January 31.

  • Macrotech Developers’ (Lodha) Q3FY23 net profit surges 41.7% YoY to Rs 404.5 crore as expenses see a dip of 14%. The realty company’s revenue falls 13.9% YoY but pre-sales continue to rise by 16% YoY. Abhishek Lodha, MD & CEO, says, "Demand for quality housing continues to remain strong despite the increase in mortgage rates. The housing upcycle is long-term in nature on the back of strong affordability, job creation and income growth."

  • Indian rupee appreciates to 81.61 from the previous close of 81.72 against the US dollar in early trade today.

  • Sonata Software redesignates Samir Dhir as the Managing Director & CEO of the company from Whole-time Director & CEO. The stock is trading flat and has a high Trendlyne Checklist score.

  • Indus Towers posts a net loss of Rs 708 crore in Q3FY23 against a profit of Rs 1,570.8 crore in Q3FY22. This comes after the company made provisions worth Rs 2,298.1 crore for doubtful recovery of debt from Vodafone Idea. Revenue also dips 2% YoY in Q3 as collections fall short. It shows up in a screener of stocks with decreased mutual fund holdings in the past quarter.

  • TVS Motor’s consolidated Q3FY23 net profit rises 21.4% YoY to Rs 300.8 crore, with revenue increasing 22.3% on the back of price hikes carried out by the company in the past quarter. Its operating margin falls to 9.1% in Q3 due to increase in expenses on raw materials and the purchase of stock-in-trade. It shows up in a screener of stocks with increasing profit over the past four quarters.

Riding High:

Largecap and midcap gainers today include TVS Motor Company Ltd. (1,037.90, 5.49%), Sona BLW Precision Forgings Ltd. (455.00, 5.18%) and Relaxo Footwears Ltd. (835.90, 2.26%).

Downers:

Largecap and midcap losers today include Adani Transmission Ltd. (2,517.75, -8.85%), Zomato Ltd. (47.75, -8.35%) and Ambuja Cements Ltd. (460.20, -7.77%).

Crowd Puller Stocks

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

Top high volume gainers on BSE included Saregama India Ltd. (356.45, 7.58%), KIOCL Ltd. (219.65, 5.52%) and TVS Motor Company Ltd. (1,037.90, 5.49%).

Top high volume losers on BSE were Zomato Ltd. (47.75, -8.35%), Ambuja Cements Ltd. (460.20, -7.77%) and Indus Towers Ltd. (157.90, -7.36%).

Home First Finance Company India Ltd. (794.00, 5.12%) was trading at 15.4 times of weekly average. Sundaram Clayton Ltd. (4,775.00, 0.25%) and Esab India Ltd. (4,050.00, 4.86%) were trading with volumes 12.3 and 8.3 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

21 stocks tanked below their 52 week lows.

Stocks making new 52 weeks lows included - Atul Ltd. (6,993.20, -2.21%) and Aurobindo Pharma Ltd. (417.75, -4.68%).

6 stocks climbed above their 200 day SMA including Home First Finance Company India Ltd. (794.00, 5.12%) and Lemon Tree Hotels Ltd. (75.05, 1.76%). 27 stocks slipped below their 200 SMA including ACC Ltd. (2,165.70, -7.28%) and Container Corporation of India Ltd. (649.60, -4.52%).

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

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

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

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

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

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

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

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

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

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

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

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

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

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

(You can find all analyst picks here)

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

Trendlyne Analysis

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Riding High:

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

Downers:

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

Movers and Shakers

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

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

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

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

BSE 500: highs, lows and moving averages

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

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

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

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

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

Trendlyne Analysis

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Riding High:

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

Downers:

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

Volume Shockers

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

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

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

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

BSE 500: highs, lows and moving averages

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

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

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

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