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Trendlyne Marketwatch
Trendlyne Marketwatch
26 Dec 2022
Market closes higher, Radiant Cash Management’s IPO gets bids for 6% of total shares

Trendlyne Analysis

Nifty 50 rose over 200 points and closed above the key 18,000 mark. Major Asian indices aslo closed higher, in line with the US indices, which closed in the green on Friday. However, despite closing higher on Friday, all three major US indices are set to post their biggest yearly losses since the 2008 global financial crisis. On Friday, the tech-heavy Nasdaq 100 closed 0.3% higher while the Dow Jones rose 0.5%. Brent crude oil futures rose over 2.5% on Friday and closed in the green for a third straight trading session.

Nifty Smallcap 100 and Nifty Midcap 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 50closed at 18,014.60 (207.8, 1.2%), BSE Sensexclosed at 60,566.42 (721.1, 1.2%) while the broader Nifty 500closed at 15,298.55 (252.6, 1.7%)

Market breadth is overwhelmingly positive. Of the 1,980 stocks traded today, 1,703 were on the uptrend, and 242 went down.

  • Nifty 50sees a short covering in its December 29 future series as its open interest falls 9.2% with a put-call ratio of 0.97.

  • Crude oil prices rise as Russia plans to cut oil exports by 5-7% in the early phase of 2023 on the back of sanctions by Western nations. Other commodities like copper and zinc also see a rise in prices, while aluminium prices fall.

  • Easy Trip Planners is up more than 15% in trade today. The company recently announced a programme for its elite shareholders where they can gain benefits from its referral scheme. It shows up in a screener of stocks with increasing revenue for the past two quarters.

  • Voltasand Aurobindo Pharma hit their 52-week lows of Rs 770 and Rs 434.4 respectively. Voltas falls for five consecutive sessions, while Aurobindo Pharma trades lower for three.

  • Public sector banks like Indian Overseas Bank, Union Bank of India, Bank of India, Bank of Maharashtra and Punjab National Bank are rising in trade. The broader sectoral index Nifty PSU Bank is also trading in the green.

  • Radiant Cash Management’s Rs 387.9 crore IPO gets bids for 6% of the available 2.7 crore shares on offer on the second day of bidding. The retail investor quota gets bids for 9% of the available 1.37 crore shares on offer.

  • Voltas touched a 52-week low of Rs 770 before bouncing back to trade in the green. The company shows up in a screener of stocks with falling RoCE in the past two years. The stock has a durability score of 60, with 14 analysts recommending a ‘Hold’.

  • Managing Director of MTAR Technologies, Parvat Srinivas Reddy, says that the company's order book stands close to Rs 1,300 crore and expects more order inflow from the defence, nuclear and aerospace segments. The company is on track to meet its guidance for FY23 with revenue growth of 50% YoY and EBITDA growth of 30% YoY.

  • Tata Motors is rising as its subsidiary TML CV Mobility Solutions signs an agreement with the Delhi Transport Corp to supply and operate 1,500 electric buses for 12 years in New Delhi. The company shows up in a screener for stocks in which FIIs have increased their shareholding.

  • Private equity firm Advent International agrees to buy a 50% stake in Suven Pharmaceutical from its promoters, Jasti family. The deal value is nearly Rs 6,313 crore. The company has also announced an open offer of 6.6 crore equity shares (26% stake) worth Rs 3,276 crore.

  • Power Mech Projects wins orders for the execution of retrofitting of flue gas desulphurisation system from Adani Group, setting up of wagon repair workshop at Kazipet, Telangana, from its joint venture with Taikisha, and providing operation and maintenance services at Dangote petroleum refinery and petrochemicals project in Nigeria. The three orders are worth Rs 1,034.13 crore in total.

  • ICICI Direct maintains its ‘Buy’ rating on IndusInd Bank with a target price of Rs 1,450. This indicates an upside of 23%. The brokerage believes that the bank is well-placed to capitalise on the continued traction in credit demand, given its focus on high-yielding segments, moderation in provisions, steady disbursement growth and moderation in slippages. It expects the company’s net profit to grow at a CAGR of 34% over FY22-24.

  • Managing Director and Chief Executive Officer of CSB Bank, Pralay Mondal, says that the bank has seen a rise in the gold loan financing business over the past nine months. He adds that there are no risk bets on gold loans, and non-performing assets (NPAs) are almost zero.

  • Realty stocks like Indiabulls Real Estate, Sobha, Prestige Estates Projects and Sunteck Realty are rising in trade. The broader sectoral index Nifty Realty is also trading in the green.

  • Inox Green is rising as it is set to acquire a majority stake in an independent operations & maintenance wind service provider with a fleet of over 230 MW, which mostly operates in South India. The company believes this acquisition will enable it to rapidly expand its footprint in India.

  • Welspun Corp is rising as the company commissions a coke plant in Anjar, Gujarat, through the company's subsidiary, Welspun Metallics. The plant will have a capacity of 2.1 lakh MT per annum of coke, which will be used in the blast furnace to manufacture hot metal.

  • Larsen & Toubro's arm L&T Construction wins orders worth Rs 1,000-2,500 crore from the Tumakuru Industrial Township under the Chennai-Bengaluru Industrial Corridor and repeat orders from the Tamil Nadu Water Supply and Drainage Board, Government of Tamil Nadu.

  • Textile stocks like KPR Mill, Trident and Raymond are rising in trade as the ban on Xinjiang cotton increases the presence of Indian spinners in foreign markets, say reports. Indian textile mills' market share rises in the US and they will benefit when the free trade agreement (FTA) takes effect.

  • Max Ventures Investment Holdings, promoter of Max Financial Services, sells a 1.71% stake and now holds 11.3% in the company.

  • Alkem Labs sells an 8% stake in its subsidiary Enzene Biosciences to Eight Roads Ventures and F-Prime Capital Partners Life Sciences. The value of the transaction is Rs 161.48 crore.

  • National Company Law Appellate Tribunal upholds Competition Commission of India’s order to impose a penalty of Rs 751.8 crore on United Breweries on the grounds of cartelization. United Breweries, Carlsberg India and All India Brewers’ Association were charged with anti-competitive conduct, coordinating the prices and regulating the supply of beer.

  • SJVN wins an order from Solar Energy Corp of India to build and operate a wind power project of 100 MW. The project cost will be Rs 700 crore and executed through SJVN’s subsidiary SJVN Green Energy. The stock shows up in a screener with high momentum score.

Riding High:

Largecap and midcap gainers today include Indian Overseas Bank (31.20, 19.08%), Union Bank of India (80.25, 18.80%) and Bank of India (87.45, 12.98%).

Downers:

Largecap and midcap losers today include Dr. Lal Pathlabs Ltd. (2,278.55, -2.87%), Cipla Ltd. (1,096.50, -2.02%) and Divi's Laboratories Ltd. (3,428.80, -1.99%).

BSE 500: highs, lows and moving averages

21 stocks were underachievers and hit their 52-week lows.

Stocks making new 52 weeks lows included - Aurobindo Pharma Ltd. (437.20, -0.07%) and DCM Shriram Ltd. (840.10, -2.21%).

34 stocks climbed above their 200 day SMA including Easy Trip Planners Ltd. (54.65, 19.98%) and Poonawalla Fincorp Ltd. (280.45, 13.96%). 24 stocks slipped below their 200 SMA including Suven Pharmaceuticals Ltd. (472.40, -4.77%) and Ajanta Pharma Ltd. (1,186.40, -4.35%).

 
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The Baseline
23 Dec 2022
Five Interesting Stocks Today
  1. Shyam Metalics and Energy: This metals and mining company’s share price rose over 9% intraday on Wednesday after it announced the acquisition of Mittal Corp, paving its entry into the stainless steel business. However, on Thursday, the stock settled 2.1% lower following weakness in the market.

With Mittal Corp’s acquisition, Shyam Metalics aims to expand its existing 8.85 million tonnes per annum (MTPA) production capacity to 14.45 MTPA. With the rise in share price in reaction to the news, the company made it into a screener of stocks with RSI indicating price strength. However, looking at longer-term performance, the stock price has lost over 10% year-to-date. This could be due to the company’s net profit falling YoY for the past two quarters.

Speaking about the Mittal Corp deal, vice-chairman and managing director Brij Bhusan Agarwal said, “The acquisition cost is about Rs 450 crore and it will enable us to foray into stainless steel and special products, such as defence materials.” The management added that the company plans to further invest Rs 7,500 crore over the next five years to meet organic and inorganic growth plans. According to Trendlyne’s Forecaster estimates, Shyam Metalics’ capex is expected to rise 43.6% in FY23 to Rs 1,900 crore.

This metal company comes under “strong performer, under radar” in Trendlyne’s DVM classification. Strong Performer, Under Radar stocks are companies with high durability and valuation scores (above 50-55) and midrange momentum.

  1. Finolex Industries: This plastic products manufacturer rose 15.8% over the past month, outperforming its industry by 12.2% in the same period. This uptrend comes on the back of rising demand for pipes driven by the irrigation, water supply and sanitation segments amid falling commodity prices. The management expects demand across segments to improve in the coming quarters as raw material costs decline. It believes the firm is well positioned to capitalise on the rise in demand, given its backward integration operations. The stock shows up in a screener for companies with improving RoA over the past two years. It also has a consensus recommendation of a ‘Buy’, according to Trendlyne’s Forecaster.

In Q2FY23, the firm posted a loss of Rs 95.4 crore due to a fall in PVC (Polyvinyl Chloride) resin prices against its high-priced inventory of raw materials and finished goods. The management expects margins to be under pressure in Q3FY23 due to high inventory costs. However, it expects to withstand the pressure given its robust balance sheet and positive cash flows. On the other hand, declining raw material costs led to lower pricing in Q2, which drove the rise in demand. The company’s sales volume rose as the pipes & fittings segment’s volume rose 7% YoY and resin sales volume increased 4% YoY.

The Indian piping industry is expected to benefit from the Centre increasing allocation toward infrastructure development and various water supply schemes, according to reports. The management is optimistic about the demand environment for pipes due to favourable government policies and initiatives. 

  1. Indian Hotels Company: This hotel company fell over 4% in trade on Wednesday and 8.7% in the past week, taking cues from the broader markets. However, Motilal Oswal is bullish on the company and recommends a  ‘Buy’ rating with a target price of Rs 390. The brokerage expects Indian Hotels’ new brands Ama Stays, Qmin and Chambers to scale up rapidly and contribute 26% of the company’s operating profits by FY25. The brokerage adds that the strong demand momentum witnessed in FY22 will continue in the next few years, FY23-25E.

Recently, Puneet Chhatwal, Managing Director and CEO of Indian Hotels, said the company was well poised to deliver stronger growth in H2FY23 and on track to achieving the targets set under its new strategy. The company launched a new strategy called Ahvaan 2025 in May this year. It aims to build a portfolio of 300 hotels and post a  33% EBITDA margin with 35% EBITDA share contribution from new brands and management contracts by FY25-26.

ICICI Securities is also positive about the company and retained its ‘Add’ rating. It expects demand momentum to sustain in Q3FY23 as well, with strong leisure and business travel. The company, as a result, features in a screener where brokers upgraded recommendations or target prices in the past three months.

  1. Balrampur Chini Mills: This sugar stock surged more than 3.5% in trade on Tuesday after the central government reduced GST on ethanol to 5% from 18%. This move comes as a boost to the government’s target to double ethanol blending with petrol to 20% by the end of 2023. And sugar companies are not complaining.

Balrampur Chini rose 11% in the past month alone and shows up in a screener of stocks giving consistently high returns for the past five years. The sugar industry rose 6.2% in the past month. The stock is also showing strong momentum and is trading above its short, medium and long-term averages.

The good news for sugar stocks does not end here. The Centre is mulling the possibility of increasing the export quota for sugar from January 2023. This will boost earnings for sugar companies in the coming quarters. On Monday, Balrampur Chini Mills also announced the commencement of commercial production of industrial alcohol with an additional capacity of 170 kilolitres per day (KLPD) at the Balrampur unit. The total distillation capacity of the company now stands at 1,050 KLPD. Systematix gives a ‘Buy’ recommendation on the stock, betting that the company will improve its sugarcane yield and increase its ethanol capacity.

The Centre’s production target for sugar is 4.1 crore tonnes in 2022-23, which is a 5% increase from the 2021-22 cycle. However, Reuters reported that India’s output for sugar is likely to fall by 7% in the ongoing marketing cycle (the marketing cycle for sugar begins in October). This is because adverse weather conditions may disrupt sugarcane yield. Low output may affect exports and global sugar prices.

  1. JSW Steel: This metal stock rose more than 30% in trade in the past six months and recovered 42% from its 52-week low. The broader index Nifty Metal also surged 38% in the past six months. Metal stocks have been riding high because of a fall in coking coal prices and the removal of export duty on steel.

Coking coal prices play an important role here as 85% of demand is met through imports and a reduction signals lower costs for the company. In Q2FY23, raw material costs shot up 92.7% YoY to Rs 23,757 crore and the company reported a net loss of Rs 848 crore.

JSW Steel also recently finished a capacity expansion project at its Dolvi plant. The expansion plans were announced in Q3FY22 and the company was able to complete the project within a year. Also, the integration of Bhushan Power and Steel Company has proved to be beneficial as JSW Steel’s crude steel production rose 16% YoY to 1.69 MTPA in November. The company further plans to expand its capacity to 37 MTPA by FY25, from its current capacity of 27 MTPA. The stock shows up in a screener of stocks with improving RoA, RoE and RoCE in the past two years.

All this sounds good for JSW Steel, but risks to growth remain. In recent brokerage calls, Nomura and BOB Caps gave ‘Reduce’ and ‘Hold’ ratings for the stock. BOB Caps reduced its target price by 13% to Rs 650. Analysts believe that capacity expansion may be a good move for the company, but demand needs to improve at an equal pace. Hopefully, as China reopens its economy and scraps the ‘Zero Covid Policy’, industrial activity will improve in the coming months, boosting global demand. However, China’s PMI index fell to 48 in November from 49.2 in October (PMI index below 50 indicates a contraction in manufacturing activity), and streets are reportedly deserted across major cities as Covid rips through the population. 

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
23 Dec 2022
Market closes lower, Spandana Sphoorty's board approves sale of stressed loans worth Rs 323.1 crore

Trendlyne Analysis

Nifty 50 fell over 300 points and closed below its 100-day simple moving average with the volatility index, India VIX, rising sharply. European induced traded above Thursday’s levels. However, major Asian indices closed in the red, in line with the US indices, which closed lower on Thursday. US indices fell as better-than-expected US economic data supported the US Fed’s case for more ongoing rate increases. The tech-heavy Nasdaq index fell 2.5% led by heavyweights Tesla and Nvidia which declined over 7%. Tesla has lost over 33% in December and is on course for its worst-ever month. Brent crude oil futures traded higher after giving up its gains and closing flat on Thursday.

Nifty Midcap 100and Nifty Smallcap 100 closed deep in the red, following the benchmark index. Nifty Autoand Nifty Bank closed lower than Thursday’s levels. Nifty IT closed in the red, taking cues from the tech-heavy Nasdaq 100, which closed deep in the red on Thursday.

Nifty 50closed at 17,806.80 (-320.6, -1.8%), BSE Sensexclosed at 59,845.29 (-980.9, -1.6%) while the broader Nifty 500closed at 15,046.00 (-385.5, -2.5%)

Market breadth is overwhelmingly negative. Of the 1,948 stocks traded today, 129 were in the positive territory and 1,809 were negative.

  • Gujarat GasbeatsIndraprastha Gasin YoY & QoQ net profit growth, MF holdings and annual RoE & RoCE. But lags in YoY & QoQ revenue growth and broker average target upside.

  • Hardware technology and equipment, telecommunications equipmentand forest materialssectors fall by more than 11% over the week.

  • According to Trendlyne's FII dashboard, foreign institutional investors pulled out a total of Rs 156.2 crore from the equity market over the past week. However, index options received the highest inflow of Rs 21,689.4 crore from foreign investors.

  • Realty company Brigade Enterprises is rising in a weak market. The company shows up in a screener of stocks with improving cash flow from operations for the past two years. Trendlyne’s consensus recommendation from 10 analysts on the stock is ‘Buy’.

  • Goldman Sacs maintains its ‘Neutral’ rating on Bandhan Bank with a target price of Rs 297. The brokerage expects an RoE of 20% and an RoA of 2.7% during FY23-25. The bank's pre-provisioning operating profit (PPOP) is likely to grow 14% CAGR over FY22-25.

  • Spandana Sphoorty's board of directors approves the sale of its stressed loans worth Rs 323.1 crore to an asset reconstruction company (ARC). The company receives a binding bid of Rs 95 crore from an undisclosed ARC.

  • Indus Towers appoints Prachur Sah as Additional Director as well as Managing Director and Chief Executive Officer of the Company with effect from January 3 for a period of five years, subject to the approval of shareholders.

  • India's FII inflows improve to $1.1 billion in December. The capital goods sector gets the highest inflow of $395 million, while the energy sector sees the largest outflow of $270 million.

  • Vedanta gets intimation from the Directorate of Mines & Geology, government of Goa, that it has been declared as the preferred bidder in the e-auction of Block-1 Bicholim mineral block. The mineral block has resources of 84.9 million tonnes.

  • Fertilizers stocks like Chambal Fertilisers & Chemicals, Gujarat State Fertilizer & Chemicals and The Fertilisers and Chemicals Travancore are trading lower as reports suggest officials are considering cutting the fertilizer subsidy for FY24 to reduce fiscal pressure.

  • Metal stocks like Hindalco Industries, Tata Steel and National Aluminium fall more than 3% in trade. All constituents of the broader Nifty Metal index are trading in the red.

  • Kishor Patil, Co-founder, CEO and MD of KPIT Technologies, says that the company maintains a revenue growth guidance of 31-32% and margin guidance of 18-19% for FY23. The stock is down by over 5% in trade today.

  • ICICI Sec maintains its ‘Buy’ rating on Jubilant Foodworks with a target price of Rs 720, indicating an upside of 38.2%. The brokerage expects the company to make market share gains in the coming quarters given its focus on customer convenience, reducing delivery time and superior execution. It estimates the firm’s revenue to grow at a CAGR of 20.9% over FY22-24.

  • PSU Bank stocks like UCO Bank, Indian Overseas Bank, Central Bank of India and Bank of Maharashtra are falling in trade. The broader sectoral index Nifty PSU Bank is also trading in the red.

  • Jefferies initiates coverage on Global Health (Medanta) with a ‘Buy’ rating and a target price of Rs 550. The brokerage says that the healthcare provider has strong brand equity among its customers.

  • RailTel Corp of India bags a contract worth Rs 98.6 crore from Webel Technology. The order pertains to enhancing the capacity of the West Bengal State Data Centre in Monibhandar, Kolkata. The stock shows up in a screener for companies with book value per share improving over the past two years.

  • Abans Holdings’ shares list at a 1.1% premium to the issue price of Rs 270 on its debut on the bourses. The 345.6 crore IPO was subscribed for 1.1X the total shares on offer.

  • Landmark Cars’ shares list at a 6.9% discount to the issue price of Rs 506 on its debut on the bourses. The 552 crore IPO was subscribed for 3.06X the total shares on offer.

  • Rail Vikas Nigam wins an order worth Rs 198.93 crore from Gujarat Metro Rail Corp for the construction of Bhesan depot cum workshop.

  • Godrej Properties signs an agreement to develop premium residential projects in Gurugram on a 14.27-acre land. The estimated revenue from this project is nearly Rs 3,000 crore. Gaurav Pandey, MD & CEO of Godrej Properties, says, "This project will allow us to increase our market share in Gurugram over the next several years and deepen our presence across key real estate micro-markets."

  • Reliance Industries' arm Reliance Strategic Business Ventures acquiresa 23.3% stake in the US-based robotics company, Exyn Technologies, for $25 million (approximately Rs 206.8 crore). Another subsidiary of the company, Reliance Projects and Property Management Services acquiresa 100% stake in Reliance Infratel for Rs 3,720 crore. Through this deal, the company will acquire 43,000 mobile towers across the country.

Riding High:

Largecap and midcap gainers today include Procter & Gamble Hygiene & Healthcare Ltd. (14,140.00, 1.03%), Vedant Fashions Ltd. (1,310.00, 1.02%) and Syngene International Ltd. (575.30, 0.10%).

Downers:

Largecap and midcap losers today include Indian Overseas Bank (26.20, -14.66%), Union Bank of India (67.55, -11.29%) and General Insurance Corporation of India (156.00, -11.21%).

Volume Shockers

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

Top high volume gainers on BSE included Shilpa Medicare Ltd. (288.90, 7.74%), Brigade Enterprises Ltd. (471.20, 3.95%) and Suven Pharmaceuticals Ltd. (496.05, 2.57%).

Top high volume losers on BSE were AstraZeneca Pharma India Ltd. (3,304.00, -3.22%), Aditya Birla Sun Life AMC Ltd. (436.50, -3.12%) and Motherson Sumi Wiring India Ltd. (55.90, -2.61%).

Granules India Ltd. (328.35, 0.34%) was trading at 4.4 times of weekly average. Lupin Ltd. (756.75, -1.25%) and Aarti Drugs Ltd. (455.05, 1.78%) were trading with volumes 3.8 and 3.6 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

1 stock hit its 52-week high, while 31 stocks hit their 52-week lows.

Stock touching their year highs included - Abbott India Ltd. (21,797.25, -0.21%).

Stocks making new 52 weeks lows included - Greaves Cotton Ltd. (126.15, -4.47%) and Havells India Ltd. (1,100.00, -3.36%).

3 stocks climbed above their 200 day SMA including Suven Pharmaceuticals Ltd. (496.05, 2.57%) and Ajanta Pharma Ltd. (1,235.00, 0.62%). 71 stocks slipped below their 200 SMA including Infibeam Avenues Ltd. (14.65, -11.75%) and Easy Trip Planners Ltd. (45.55, -10.77%).

 
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The Baseline
22 Dec 2022
Portfolio X-Ray: Ashish Kacholia has an eye for smallcap and midcap winners
By Abhiraj Panchal

Ashish Kacholia is known in the industry for his skill in picking small and midcap winners. He started his career in Prime Securities, and later moved to Edelweiss. He co-founded Hungama Digital with Rakesh Jhunjhunwala and now serves as a board member. He started his own company Lucky Securities in 2003. Kacholia holds a Bachelor's degree in Production Engineering and a Master's in Management Studies. 

Kacholia primarily invests in small-cap and a few mid-cap companies, and has an uncanny eye for finding potential multibagger stocks.  His net worth in Q2FY23 was Rs 1,772 crore, and he publicly holds stakes in 40 stocks, of which 37 are small-cap companies.

Best-performing companies in Kacholia’s portfolio are Beta Drugs, Safari Industries (India) and Carysil. The price of Beta Drugs has increased 573.4% since he added it to his portfolio in Q4FY19. He currently owns a 5.7% stake in the pharma company. 

Kacholia bought stakes in  Safari Industries (India) and Carysil in Q4FY20 and Q3FY16 respectively. Their stock prices have also risen by 328.4% and 276.3%respectively since the purchase. The investor booked profits on Mastek (bought in Q2FY19), Vishnu Chemicals (bought in Q3FY16) and Mold-Tek Packaging (bought in Q1FY18) before cutting his stake to below 1% in Q2FY23, as they started to hurt the portfolio holding value. The prices of these companies rose by 271.6%, 353.4% and 191.9% respectively till Q2FY23, since the time of purchase.

The worst-performing stocks in Kacholia’s portfolio are IOL Chemicals and Pharmaceuticals and  United Drilling Tools. Their prices have fallen by 52.7% and 41.5%respectively since added to the portfolio in Q3FY21 and Q3FY22. He also cut his stake in Kwality Pharmaceuticals to below 1% in Q2FY23 as its price fell 50.8% by the end of the quarter of purchase. 

Chemicals, consumer durables, textiles among Kacholia’s favourite sectors

Kacholia’s diversified portfolio has 16.4% investment in the chemicals and petrochemicals sector, aggregating to Rs 300.7 crore. He has invested 14.9% of his portfolio in consumer durables, 13.9% in textiles, apparel and accessories, and 9.4% in general industrials. While commercial services and supplies and pharmaceuticals and biotechnology amounts to 8.3% each, software and services has 7.8%, and diversified consumer services 5% of his portfolio. The least invested sectors are food, beverages and tobacco, banking and finance, FMCG, realty, and hardware technology and equipment with less than 2% each.

The marquee investor went on a buying spree and added nine new stocks to his portfolio in Q2FY23. He also increased his holdings in 12 companies during the same period. He reduced his holdings in ten companies, of which five were cut to below 1%. In new additions, he bought 5% of Dudigital Global, 3.3% of D-Link (India) and 2.6% of Agarwal Industrial Corp. He also increased his stakes in Hindware Home Innovation and Ador Welding by 1.3% and 1% respectively. Kacholia cut a 0.3% stake in Genesys International Corp and 0.2% in Safari Industries (India) and reduced holdings in Mastek, Mold-Tek Packaging, Vishnu Chemicals, VRL Logistics and Kwality Pharmaceuticals to below 1%. 

During the recent quarter, Kacholia bought a 2.1% stake in Raghav Productivity Enhancers on November 4, a 1% stake in Likhitha Infrastructure on November 30 and a 0.8% stake in Aditya Vision on December 9. On December 21, he sold a 0.6% stake in D-Link (India) in a bulk deal.

Kacholia prefers companies with good fundamentals

Of the 40 companies that Kacholia holds, only one reported a net loss in Q2FY23. Sastasundar Ventures reported a consolidated net loss of Rs 4.9 crore despite a 60.3% rise in consolidated revenue, while the rest had net profit. 

During Q2FY23, Best Agrolife reported a net profit of Rs 129.8 crore, indicating an increase of 415.4% YoY, while its revenue rose by 115.9% YoY. Agarwal Industrial Corp, Safari Industries (India) and Barbeque-Nation Hospitality reported a YoY rise in net profit by 257.1%, 144.2% and 142.6% respectively, while their revenue increased by 40.4%, 67% and 40.6%. Kacholia cut his stake in Vishnu Chemicals to below 1%, while its profit grew by 111.2% in Q2FY23. Eleven companies in the portfolio reported a YoY fall in net profit, while three reported a YoY fall in revenue. United Drilling Tools, IOL Chemicals and Pharmaceuticals, Carysil and Vaibhav Global are among the companies that reported a fall in net profit.

From the portfolio, 22 companies outperformed their respective industries over a year and quarter, and 17 companies outperformed over a month. PCBL, Arvind Fashions and La Opala RG are among the companies that outperformed their industries.  

Sastasundar Ventures announced the highest basic annual EPS of Rs 222.7, followed by Bharat Bijlee (Rs 98.3), Garware Hi-Tech Films (Rs 72), Agarwal Industrial Corp (Rs 51.1) and Best Agrolife (Rs 46).

While 21% of the stocks in Kacholia’s holdings, like Barbeque-Nation Hospitality, Best Agrolife, Shaily Engineering Plastics and Safari Industries (India) are currently trading in the PE Buy Zone, 27% are trading in the PE Sell Zone. Companies in the Sell Zone include HLE Glasscoat, Vaibhav Global and Fineotex Chemical. Meanwhile, the PE of seven stocks is above their respective sectors, like HLE Glasscoat, Arvind Fashions, Genesys International Corp, Megastar Foods and Shankara Building Products.

How volatile is Kacholia’s portfolio?

Over a year, the beta for 20 stocks in Kacholia’s portfolio is below 1 and 16 are greater than 1. However, 29 stocks have a beta lesser than 1 for a quarter. The average beta of the portfolio for a year is 0.94, whereas it is 0.8 for a quarter. 

The Beta of Ashish Kacholia’s portfolio is lesser than that of the Nifty 50. Even though the volatility is marginally in line with the benchmark index for a year, it is lower over the quarter. We can conclude that Kacholia, despite his preference for smaller companies, may make safer bets while buying stocks. On the valuation side, he currently holds stocks in both the PE Buy and Sell Zones.  

Overall, the marquee investor looks for companies with strong fundamentals and have the potential to turn into multibagger stocks. He then tends to hold them for a longer period to book higher profits, and rarely panics during downturns.

 
Trendlyne Marketwatch
Trendlyne Marketwatch
22 Dec 2022
Market closes lower, Elin Electronics’ IPO gets bids for 3.1X of the total shares on offer

Trendlyne Analysis

Indian indices closed in the red on a volatile day of trade as Covid omicron subvariant BF.7 outbreak in China spooked investors. However, European stocks traded higher than Wednesday’s levels amid mixed global cues. UK’s gross domestic product rose 1.9% YoY in the third quarter but fell 0.3% QoQ.

Most major Asian indices closed in the green, in line with the US indices, which closed higher on Wednesday. US indices registered their biggest daily gain in December with help from Nike and FedEx, which rose sharply after beating forecaster estimates in their quarterly earnings. Improving consumer confidence and cooling inflation expectations from investors also helped US stocks to rise. The tech-heavy Nasdaq 100 index rose nearly 1.5% while the Dow Jones closed 1.6% higher on Wednesday. Crude oil prices traded higher after rising over 3% on Wednesday as US crude supplies remained tight ahead of the holiday season.

Nifty Midcap 100 and Nifty Smallcap 100 closed in the red, following the benchmark index. Nifty Metal and Nifty Media closed lower than Wednesday’s levels. Nifty IT closed flat, despite the Nasdaq 100 closing in the green on Wednesday.

Nifty 50closed at 18,127.35 (-71.8, -0.4%), BSE Sensexclosed at 60,826.22 (-241.0, -0.4%) while the broader Nifty 500closed at 15,431.50 (-96.1, -0.6%)

Market breadth is sharply down. Of the 1,940 stocks traded today, 281 were on the uptrend, and 1,640 went down.

  • Relative strength index(RSI) indicates that stocks like The Fertilisers and Chemicals Travancore, UTI Asset Management, Abbott Indiaand Thyrocare Technologiesare in the overbought zone.

  • Zydus Lifesciencesreceives final approval and 180 days of shared exclusivity from the US Foods & Drug Administration to market selexipag tablets. The drug is used to treat high blood pressure in the vessels that carry blood to the lungs and will be manufactured in the company’s facility in Ahmedabad SEZ, Gujarat. The tablet had annual sales of $577 million in the US as of September 30.

  • JK Cementtrades in green in a falling market. The company inks a pact with Acro Paints to acquire a 60% stake via its subsidiary JK Paints and Coatings. The cost of acquisition will be Rs 153 crore and it will help JK Paints foray into the construction chemicals segment.

  • Fertilizer stocks like Coromandel International, The Fertilisers and Chemicals Travancore, Chambal Fertilisers & Chemicals and Rashtriya Chemicals & Fertilizersfall over 2% in trade today. The broaderFertilizers industry is also trading in the red. Reports suggest that fertilizer companies must pay for 40% of gas in cases of spot buying.

  • Abbott Indiarises for six consecutive sessions and touches its 52-week high of Rs 21,975. It ranks high on Trendlyne's checklist with a score of 77.3%. The stock also features in a screenerof companies with high TTM EPS growth.

  • Realty stocks like Indiabulls Real Estate, Sunteck Realty, Godrej Properties and Oberoi Realty are falling in trade. The broader sectoral index Nifty Realty is also trading in the red.

  • Capital goods stocks like Elgi Equipments, Praj Industries, AIA Engineering and Sona BLW Precision Forgings are falling in trade. The broader sectoral index BSE Cap Goods is also trading in the red.

  • Ajanta Pharma is rising in a weak market. The stock ranks high on the Trendlyne Checklist score. Trendlyne’s consensus recommendation shows that seven analysts recommend a ‘Buy’ on the stock.

  • Elin Electronics’ Rs 475 crore IPO gets bids for 3.1X the available 1.4 crore shares on offer on the last day of bidding. The retail investor quota gets bids for 2.2X the available 71.04 lakh shares on offer.

  • K Natarajan, Executive Director and COO of Galaxy Surfactants, expects the company’s volume growth to be flat or negative in FY23 but 6-8% in FY24.

  • ICICI Direct maintains a ‘Buy’ rating on Sheela Foam with a target price of Rs 1,650, implying an upside of 27%. The brokerage expects the company to gain market share in the Indian mattresses industry, given its new product launches and strong balance sheet. It also sees the firm’s recent order wins and focus on ramping up exports as key positives. The brokerage anticipates Sheela Foam’s net profit to grow at a CAGR of 22% over FY22-24.

  • Torrent Investments wins an auction to buy debt-laden Reliance Capital with the highest bid of Rs 8,640 crore, beating Hinduja Group and Oaktree Capital, say reports. This comes after Reliance Capital was suspended from trading after initiating a corporate insolvency resolution process on Tuesday.

  • Samvardhana Motherson International is falling as 1.6 crore shares (0.5% equity) amounting to Rs 111.5 crore change hands, according to reports.

  • Maruti Suzuki India signs a five-year agreement with Kamarajar Port in Ennore, Chennai, to export around 20,000 cars annually, say reports. The company will use the port to export cars to Africa, West Asia, Latin America and South & South-East Asia. Kamarajar Port becomes the fourth port to be used to export cars by the company. The stock shows up in a screener for companies with high TTM EPS growth.

  • Strides Pharma Science's arm Strides Pharma Global receives 94 million Australian dollars (Rs 525 crore) as deferred consideration for the sale of its Australian operations in 2019.

  • Tata Communications’ arm Tata Communication (Netherlands) is set to acquire 100% stake in Switch Enterprises for $58.8 million (Rs 486.3 crore). Switch Enterprises is a US-based media-enabled services company. It believes this acquisition will drive the expansion of its video connect business and its footprint in the media ecosystems in Europe and North America.

  • VS Ganesh, Managing Director of Page Industries, says that the company will not take price hikes even if cotton prices rise. He maintains a revenue target of Rs 10,000 crore and capex in the range of Rs 200-250 crore.

  • Ashish Kacholia sells a 0.6% stake in D-Link (India) for approx Rs 5.2 crore in a bulk deal on Wednesday.

  • Sula Vineyards’ shares list at a 1.1% premium to the issue price of Rs 357 on its debut on the bourses. The 960.3 crore IPO was subscribed for 2.3X the total shares on offer.

  • Supriya Lifesciences inks a pact with Enrich Energy, a Pune-based firm, to build a 4.68 MWp solar photovoltaic project in Nanded, Maharashtra. This project will generate and supply green energy, fulfilling 50% of the company's requirements. Supriya Lifesciences also signs a long-term agreement with Enrich energy for operations and maintenance services for the project, which will be operational by FY23-24.

  • Torrent Pharma’s board approves its merger with Curatio Health Care. Curatio’s net worth is Rs 115.39 crore. This merger will aid Torrent Pharma’s overall growth and ease supply & distribution network and costs. Torrent Pharma shows up in a screener of stocks with improving book value for the past two years.

  • Reliance Retail Ventures (RRVL), a subsidiary of Reliance Industries, acquires Metro Cash & Carry for a cash consideration of Rs 2,850 crore. This acquisition will add large-format stores to RRVL's existing store count and strengthen its e-commerce business. Isha Ambani, Director of RRVL says, “We believe that Metro India’s healthy assets and our deep understanding of the Indian merchant/kirana ecosystem will offer a differentiated value proposition to small businesses in India.”

Riding High:

Largecap and midcap gainers today include General Insurance Corporation of India (175.70, 4.61%), Jubilant Foodworks Ltd. (533.80, 2.42%) and REC Ltd. (112.50, 2.23%).

Downers:

Largecap and midcap losers today include Union Bank of India (76.15, -6.22%), Adani Wilmar Ltd. (552.60, -6.04%) and Adani Power Ltd. (276.00, -4.99%).

Volume Rockets

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

Top high volume gainers on BSE included Ajanta Pharma Ltd. (1,227.40, 4.74%), Wockhardt Ltd. (236.35, 3.34%) and Aster DM Healthcare Ltd. (241.20, 2.46%).

Top high volume losers on BSE were Thyrocare Technologies Ltd. (623.80, -10.99%), Vardhman Textiles Ltd. (308.15, -5.71%) and CreditAccess Grameen Ltd. (883.15, -2.74%).

Jyothy Labs Ltd. (202.95, 1.73%) was trading at 17.5 times of weekly average. Capri Global Capital Ltd. (757.15, 1.57%) and Sun Pharma Advanced Research Company Ltd. (215.70, 2.45%) were trading with volumes 9.6 and 6.7 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

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

Stocks touching their year highs included - Abbott India Ltd. (2,1842.45, 1.36%) and Jyothy Labs Ltd. (202.95, 1.73%).

Stocks making new 52 weeks lows included - Sunteck Realty Ltd. (344.55, -2.38%) and Voltas Ltd. (807.35, -0.78%).

5 stocks climbed above their 200 day SMA including Sonata Software Ltd. (540.00, 1.33%) and Kotak Mahindra Bank Ltd. (1,826.05, 0.63%). 43 stocks slipped below their 200 SMA including Thyrocare Technologies Ltd. (623.80, -10.99%) and Deepak Fertilisers & Petrochemicals Corporation Ltd. (663.35, -6.14%).

 
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The Baseline
22 Dec 2022
Screener of the week: FII favourites among high scoring DVM stocks
By Abdullah Shah

As 2022 comes to a close, we take a look at high scoring DVM stocks that have seen more than a 0.5% rise in their FII holdings in Q2FY23. This screener lists stocks that FIIs bought in significant numbers, which have high durability and momentum scores along with a decent valuation score. 

It features 24 stocks from Nifty 500 and two stocks from the Nifty 50 index. Industries like banks, construction & engineering, paper & paper products, utilities: non-electrical and defence dominate the screener. Major stocks featured in the screener are Hindustan Aeronautics, City Union Bank, IIFL Finance, JK Paper and Great Eastern Shipping. 

City Union Bank saw the highest rise of 3.2% QoQ in its FII holdings. Major contributors to this rise were Kotak Funds India Mid Cap Fund and Bank Muscat India Fund. The largest foreign investor of the company is Smallcap World Fund as it holds 4.9% stake. The stock has a high Trendlyne durability score of 65.

Great Eastern Shipping’s foreign investor holding increased by 1.9% over the past quarter. City of New York Group Trust bought 1.2% stake in the company. Other major foreign institutional investors of the company are Nalanda India Fund and Abu Dhabi Investment Authority with 7.4% and 2.2% stakes respectively. The stock also has a high Trendlyne durability score of 65.

You can find some popular screeners here.

 
Trendlyne Marketwatch
Trendlyne Marketwatch
21 Dec 2022
Markets closes lower, KFin Technologies’ IPO gets bids for 2.59X of the total shares on offer

Trendlyne Analysis

Nifty 50 fell over 270 points from the day's high and closed just below the 18,200 mark, with the volatility index, India VIX, rising sharply. However, European stocks traded higher than Tuesday’s levels. Major Asian indices closed mixed, in line with the US indices, which closed mixed on Tuesday. Dow Jones and S&P 500 snapped their four-day losing streak and closed marginally higher amid high volatility. However, the tech-heavy Nasdaq 100 index extended its losses to a fifth straight day. Crude oil prices traded higher after US crude inventories dropped by more than expected due to supply disruptions caused by the temporary closure of the Keystone pipeline.

Nifty Smallcap 100and Nifty Midcap 100 closed in the red, following the benchmark index. Nifty Bankand Nifty FMCG closed lower than Tuesday’s levels. However, Nifty IT bucked the trend and closed higher, tracking the Nasdaq 100 futures, which was trading in the green.

Nifty 50closed at 18,199.10 (-186.2, -1.0%), BSE Sensexclosed at 61,067.24 (-635.1, -1.0%) while the broader Nifty 500closed at 15,527.55 (-198.7, -1.3%)

Market breadth is overwhelmingly negative. Of the 1,938 stocks traded today, 261 were in the positive territory and 1,641 were negative.

  • City Union Banksees a short buildup in its December 29 future series as its open interest rises 18.1% with a put-call ratio of 0.33.

  • GAIL (India) and Japan's Mitsui OSK Lines ink a time charter contract for a newbuild liquefied natural gas (LNG) carrier and joint ownership of an existing LNG carrier.

  • Motilal Oswal maintains its ‘Buy’ rating on Indian Hotels Co with a target price of Rs 390, implying an upside of 19%. The brokerage expects the company’s occupancy rates and average room rates to rise as demand-supply dynamics improve. It also sees higher income from management contracts and brand launches driving revenue growth. The brokerage expects the firm’s net profit to grow at a CAGR of 30.3% over FY23-25.

  • Finance Minister Nirmala Sitharaman says that slashing corporate tax is necessary for the growth of businesses in India. She adds that India will double its GDP in the coming years.

  • Elin Electronics’ Rs 475 crore IPO gets bids for 95% of the available 1.4 crore shares on offer on the second day of bidding. The retail investor quota gets bids for 1.3X% of the available 71.04 lakh shares on offer.

  • KFin Technologies’ Rs 1,500 crore IPO gets bids for 2.59X of the available 2.37 crore shares on offer on the last day of bidding. The retail investor quota gets bids for 1.36X the available 43.2 lakh shares on offer.

  • Healthcare Services and diagnostic stocks like Vijaya Diagnostic Centre, Vimta Labs, Dr. Lal Pathlabs and Metropolis Healthcare are surging as the Covid situation in China worsens.

  • Shyam Metalics & Energy rises as it acquires Mittal Corp to foray into the stainless steel and wire rod and bar mills business. The company aims to expand its existing capacity to 14.45 MTPA from 8.85 MTPA. It has planned a capex of Rs 10,000 over the next five years.

  • RBI Governor Shaktikanta Das says that India’s economic activity is going strong but global headwinds could be a risk.

  • FSN E-Commerce Ventures (Nykaa),Adani Green Energy and Lupin’s PE TTM are trading above their Industry PE TTM. Lupin rises 4% over the past month, while Nykaa and Adani Green Energy fall in trade.

  • Pharma stocks like Glenmark Pharmaceuticals, Granules India, Lupin and Aurobindo Pharma are rising in trade. The broader sectoral index Nifty Pharma is also trading in the green.

  • Atul Lall, Vice-Chairman and Managing Director of Dixon Technologies, expects revenue of Rs 4,000-4,500 crore in the company’s mobile business for FY23, compared to the earlier guidance of Rs 4,500-5,000 crore. The fall in guidance is because of lower demand for products like LED TV and mobiles.

  • PSU Bank stocks like Indian Overseas Bank, UCO Bank, Central Bank of India and Bank of India are rising in trade. The broader sectoral index Nifty PSU Bank is also trading in the green

  • Jindal Steel & Power is rising in a volatile market, trading near its all-time high. The stock ranks high on the Trendlyne checklist score. It is trading below its historic averages, inching towards the Buy Zone. It shows up in a screener of stocks giving consistently high returns over the past five years.

  • Glenmark Pharmaceuticals rises as it launches a triple fixed-dose combination of teneligliptin with pioglitazone and metformin for adults with type-2 diabetes and high insulin resistance in India.

  • City Union Bank is falling as the Reserve Bank of India (RBI) discovers a divergence in additional gross non-performing assets (NPA) in FY22, amounting to Rs 259 crore. However, the bank claims the divergence consists of 231 borrowers, of which five accounts have been classified as NPAs and 57 stand closed.

  • Reports suggest that 69.4 lakh shares (2% equity) of Max Financial Services, amounting to Rs 471.3 crore, change hands on BSE and NSE.

  • Norwegian Government Pension Fund sells a 1.02% stake (7.03 lakh shares) in Sudarshan Chemical Industries for Rs 26.5 crore in a bulk deal.

  • Uno Minda is rising as it enters into a technical license agreement with Korea-based Ascentec to develop, design, manufacture and market wheel speed sensors in India. The stock shows up in a screener for companies with quarterly revenue increasing sequentially for the past four quarters.

  • Promoters Gyan Enterprises and Chowdry Associates sell nearly 1% stake in Dabur India through a block deal. The amount will be used to fund other business opportunities. The company shows up in a screener of stocks with zero promoter pledges.

  • Reports suggest that Tata Group is in talks with UTI Asset Management Coto buy a majority stake from four financial entities. Currently, Punjab National Bank, Life Insurance Corp of India, State Bank of Indiaand Bank of Barodaown a 45.16% stake in UTI Asset Management Co. However, in a recent clarification issued by UTI Asset Management, it denies being in talks with other parties for a stake sale.

Riding High:

Largecap and midcap gainers today include Dr. Lal Pathlabs Ltd. (2,430.30, 6.26%), Divi's Laboratories Ltd. (3,518.75, 4.99%) and Apollo Hospitals Enterprise Ltd. (4,766.20, 3.69%).

Downers:

Largecap and midcap losers today include General Insurance Corporation of India (167.95, -10.57%), Indian Railway Finance Corporation Ltd. (32.30, -9.40%) and YES Bank Ltd. (19.85, -6.81%).

Movers and Shakers

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

Top high volume gainers on BSE included Thyrocare Technologies Ltd. (700.85, 15.16%), Glenmark Pharmaceuticals Ltd. (440.40, 7.61%) and Metropolis Healthcare Ltd. (1,370.85, 7.01%).

Top high volume losers on BSE were City Union Bank Ltd. (177.25, -6.12%), Chalet Hotels Ltd. (332.35, -4.52%) and Bharat Heavy Electricals Ltd. (81.15, -3.39%).

Shyam Metalics and Energy Ltd. (299.20, 2.62%) was trading at 35.9 times of weekly average. Max Financial Services Ltd. (688.75, -1.56%) and Dr. Lal Pathlabs Ltd. (2,430.30, 6.26%) were trading with volumes 21.3 and 11.1 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

9 stocks overperformed with 52-week highs, while 9 stocks hit their 52-week lows.

Stocks touching their year highs included - Abbott India Ltd. (21,548.50, 3.11%), Apollo Tyres Ltd. (319.00, -2.57%) and Axis Bank Ltd. (932.30, -1.84%).

Stocks making new 52 weeks lows included - Sunteck Realty Ltd. (352.95, -1.84%) and SIS Ltd. (386.90, -0.87%).

11 stocks climbed above their 200 day SMA including Thyrocare Technologies Ltd. (700.85, 15.16%) and Dr. Lal Pathlabs Ltd. (2,430.30, 6.26%). 24 stocks slipped below their 200 SMA including Deepak Fertilisers & Petrochemicals Corporation Ltd. (706.75, -5.99%) and Chemplast Sanmar Ltd. (454.00, -5.54%).

 
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The Baseline
20 Dec 2022
Five analyst picks this week
By Abhiraj Panchal
  1. Rites: Axis Direct maintains its ‘Buy’ rating on this construction & engineering company with a target price of Rs 405. This implies an upside of 21.9%. The analysts at the brokerage remain positive about the company due to its strong order book, execution capability, clean balance sheet and attractive valuations. 

The analysts also expect the firm to be a key beneficiary of the Centre’s push towards increasing infrastructure spending. “Being a leading player in the transport consultancy, Rites is expected to be a significant beneficiary of the Indian Railways’ infrastructure push,” they added. Given the higher capex for railways, the company is aggressively trying to bag new consultancy tenders from the metro and high-speed rail projects. 

The analysts believe the company’s well-diversified order book of Rs 5,950 crore gives revenue visibility for the next two years. They expect Rites’ net profit to grow at a CAGR of 11.7% over FY22-24.  

  1. Bharat Forge: Prabhudas Lilladher maintains its ‘Buy’ rating on this manufacturer of industrial products with a target price of Rs 1,005. This indicates an upside of 14.2%. Analyst Mansi Lall remains optimistic about the firm’s prospects given its diversification into multiple segments such as defence, aerospace, e-mobility and other industrial verticals. 

She expects the automotive segment in particular to drive growth as there are “multiple growth levers in the domestic & export automotive segment with the cyclical turnaround in the commercial vehicle industry”. Chip shortages are also expected to ease. 

Lall sees double-digit growth in high-margin non-auto segments such as aerospace and defence. The company has already bagged export orders for its artillery systems and is expected to win huge orders from the Indian Armed Forces, she added. The analyst sees the firm’s defence revenue rising to Rs 1,000 crore in a few years from the current Rs 300-500 crore. She anticipates Bharat Forge’s net profit to grow at a CAGR of 18.7% over FY22-25. 

  1. SBI Cards and Payment Services: Motilal Oswal reiterates its ‘Buy’ call on this credit card and payment solutions provider with a target price of Rs 1,000. This indicates an upside of 26.4%. Analysts Nitin Aggarwal and Yash Agarwal arranged an interactive session with Rama Mohan Rao Amara, Managing Director and Chief Executive Officer of SBI Cards. From this discussion, the analysts understood that the mix of EMI loans has increased and the revolver mix has moderated, while it has been increasing on an absolute basis.

The analysts said, “SBI Cards has been reporting a modest performance with healthy spends momentum, while higher credit cost and lower margins are dragging earnings.” They expect the revolver mix to increase gradually as spends mature, while near-term margins may continue to remain under pressure as borrowing cost increases further. Aggarwal and Agarwal believe that growth in spends is likely to stay healthy, aiding overall loan growth. They expect a profit CAGR of 41% for FY22-24.

  1. Dalmia Bharat: ICICI Securities maintains its ‘Buy’ call on this cement manufacturer with a target price of Rs 1,906, indicating an upside of 19.7%. Dalmia Bharat’s arm, Dalmia Cement (Bharat), recently acquired clinker, cement and power plants from Jaiprakash Associates at a capital cost of $73 per tonne (replacement cost of the cement asset is currently at $115-120 per tonne). Analyst Harsh Mittal remains optimistic about the company due to the asset acquisition at a competitive price. 

Mittal believes that this acquisition will help the cement manufacturer strengthen its presence in Central India. He adds that Dalmia Bharat aims to be a pan-India cement company with a capacity of 75 metric tonnes per annum by FY27 and 110?130 metric tonnes per annum by FY31. The analyst said, “We await the completion of the deal before factoring in the acquired capacity. However, we increase our realisation growth assumption for FY23/FY24, given the healthy price hikes in East and South India during Q3FY23.” 

  1. Carysil: Edelweiss initiates coverage on this small-cap sink and kitchen appliances manufacturer and gives it a ‘Buy’ call with a target price of Rs 784. This indicates an upside of 56.8%. According to the analysts at Edelweiss, Carysil doubled its quartz and steel sink capacity to meet increasing demand. “We believe strategic partnerships with large-scale retailers would sustain the revenue growth momentum in exports,” they added.

The analysts believe that strong industry tailwinds, high home-improvement spending and demand for aesthetically appealing products globally would continue to drive growth. They expect Carysil’s earnings per share to record a 20% CAGR over FY22-25, led by capacity addition, improved utilisation in quartz/steel sinks and increased penetration in domestic and international markets.  

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

(You can find all analyst picks here)

 
Trendlyne Marketwatch
Trendlyne Marketwatch
20 Dec 2022
Market closes lower, Elin Electronics’ IPO gets bids for 37% of total shares on offer

Trendlyne Analysis

Indian indices recovered from their day’s low but still closed in the red on a volatile day of trade. European stocks followed the global trend and traded below Monday’s levels. Major Asian indices closed in the red, in line with the US indices, which extended their losing streak to three days. On Monday, US indices extended their losses and closed lower for a fourth straight session on a volatile day of trade. US stocks fell as investors continue to analyse the impact of high federal fund rates on the US economic growth as the Fed Chair maintained a hawkish tone to combat high inflation. The tech-heavy Nasdaq 100 fell 1.42% and the Dow Jones closed 0.5% lower on Monday. Brent Crude oil futures traded in the green for a second consecutive day amid traders’ optimism over demand recovery due to China’s reopening.

Nifty Smallcap 100 closed in the red, following the benchmark index. Nifty Realtyand Nifty Auto closed lower than Monday’s levels. Nifty IT closed in the green, despite the tech-heavy Nasdaq 100 closing 1.4% lower on Monday.

Nifty 50closed at 18,385.30 (-35.2, -0.2%), BSE Sensexclosed at 61,702.29 (-103.9, -0.2%) while the broader Nifty 500closed at 15,726.20 (-29, -0.2%)

Market breadth is in the red. Of the 1,938 stocks traded today, 825 were in the positive territory and 1,057 were negative.

  • Shriram FinancebeatsMuthoot Financein YoY & QoQ revenue and net profit growth, PE ratio, FII Holdings and broker average rating. But lags in annual RoE & RoCE, MF holdings and broker average target upside.

  • Axis Bankrises to an all-time highof Rs 952.75 per share. The stock has a high rank of 57.69% in Trendlyne's checklist score. It also features in a screenerwith strong annual EPS growth.

  • Salasar Techno Engineering is rising as it bags two contracts worth Rs 748.5 crore from Pashchimanchal Vidyut Vitran Nigam. Both orders pertain to the construction of electricity distribution circles in Uttar Pradesh. The stock shows up in the screener for companies with quarterly profits increasing sequentially for the past three quarters.

  • Capacite Infraprojects is rising as it receives an order worth Rs 117.2 crore from DLF for the construction of a mall in Goa. The company shows up in a screener for stocks in the PE Buy zone with a good durability score and rising momentum.

  • Samiran Chakraborty, Chief Economist (India) of Citigroup, says that global slowdown will impact India’s net exports. He expects rural demand to improve over urban demand next year.

  • Mahanagar Gas appoints Ashu Shinghal as an Executive Director (Additional) designated as Managing Director of the Company with effect from December 23.

  • Elin Electronics’ Rs 475 crore IPO gets bids for 37% of the available 1.4 crore shares on offer on the first day of bidding. The retail investor quota gets bids for 55% of the available 71.04 lakh shares on offer. The IPO is a fresh issue of Rs 175 crore and an offer for sale of Rs 300 crore.

  • KFin Technologies’ Rs 1,500 crore IPO gets bids for 70% of the available 2.37 crore shares on offer on the second day of bidding. The retail investor quota gets bids for 74% of the available 43.2 lakh shares on offer.

  • RC Bhargava, Chairman of Maruti Suzuki India, says that high tax rates will hinder the auto sector's growth. His statement comes after the GST Council announced a standard rate for sports utility vehicles (SUVs) across all states—GST of 28% and 22% cess, taking the effective rate to 50%.

  • ICICI Securities upgrades its rating on Phoenix Mills to ‘Buy’ from ‘Add’ with a target price of Rs 1,648, indicating an upside of 17.9%. The brokerage turns positive on the company after its acquisition of a 7.2-acre land parcel for a new mall in Surat. It believes the firm’s focus on building new office and mall spaces will increase rental income and drive long-term revenue growth. The brokerage expects the company’s revenue to grow at a CAGR of 34.6% over FY22-25.

  • According to Trendlyne's FII dashboard, foreign institutional investors invested a total of Rs 6,487.1 crore in the equity market over the past 30 days, while mutual funds did only Rs 2,823.7 crore. Index options received the highest inflow of Rs 56,826.7 crore from foreign investors.

  • Rajesh Gopinathan, CEO of Tata Consultancy Services, expects 2023 to be a balanced year with improving margins. He adds that the company is on the path to increasing its revenue to $50 billion by 2030 and attrition rates will fall in H2FY23.

  • NTPC completes capacity (100 MW out of 300 MW) expansion of the Nokhra Solar Project at Bikaner, Rajasthan. The plant is now ready to commence operations. The stock shows up in a screener with improving RoA for the past two years.

  • Realty stocks like Godrej Properties, DLF, Oberoi Realty and Macrotech Developers are falling in trade. The broader sectoral index Nifty Realty is also trading in the red.

  • The President of India sells a 5% stake in Indian Railway Catering & Tourism Corp for approx Rs 2,726.8 crore, now holds 62.4%.

  • Just Dial is falling as the company's promoter, Reliance Retail Ventures, intends to sell 16.8 lakh shares (or 2% stake) through an open market sale to increase public shareholding. As per regulatory norms, the total public shareholding in a company should be at least 25%. Currently, Just Dial's public shareholding is 14%. The promoter plans to complete the sale within eight trading sessions starting Wednesday.

  • Dabur falls over 2% in early trade as 1.9 crore shares (1.06% equity) amounting to Rs 1,079 crore change hands, according to reports.

  • NBCC (India) is rising as it secures a contract worth Rs 69.3 crore from the Odisha Power Transmission Corp. The project involves the construction of a quarter complex in Bhubaneswar, Odisha. The stock shows up in a screener for companies with no debt.

  • IRB Infrastructure Developers' board will meet on January 4, 2023, to consider a stock split.

  • Promoters of Sterling and Wilson Renewable Energy decide to sell their stakes in the company via an offer for sale on December 20 and 21. Shapoorji Pallonji and Co will offload a 3.69% stake, while Khurshed Yazdi Daruvala will sell a 1.58% stake in the company. The floor price for the sale is set at Rs 270 per share.

  • Elin Electronics raises Rs 142.5 crore from anchor investors ahead of its IPO by allotting 57.7 lakh shares at Rs 247 per equity share. Investors include SBI Life Insurance, Aditya Birla Sun Life Trustee and Pinebridge Global Funds.

  • Adani Group’s arm Vishvapradhan Commercial acquires an additional 8.27% stake for Rs 156.7 crore in New Delhi Television (NDTV) through an open offer. This transaction takes the subsidiary’s overall shareholding to 37.45%.

Riding High:

Largecap and midcap gainers today include Indian Railway Finance Corporation Ltd. (35.65, 8.52%), Max Healthcare Institute Ltd. (437.00, 2.92%) and Adani Enterprises Ltd. (4,165.30, 2.21%).

Downers:

Largecap and midcap losers today include Indian Overseas Bank (30.85, -6.09%), Godrej Properties Ltd. (1,275.80, -2.88%) and SBI Life Insurance Company Ltd. (1,231.25, -2.86%).

Movers and Shakers

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

Top high volume gainers on BSE included Chemplast Sanmar Ltd. (480.65, 9.64%), Indian Railway Finance Corporation Ltd. (35.65, 8.52%) and RHI Magnesita India Ltd. (847.60, 3.79%).

Top high volume losers on BSE were Sterling and Wilson Renewable Energy Ltd. (273.40, -3.56%), Supreme Industries Ltd. (2,500.00, -2.33%) and Dabur India Ltd. (579.50, -1.62%).

Shipping Corporation of India Ltd. (141.25, 0.64%) was trading at 8.6 times of weekly average. JK Paper Ltd. (439.85, 3.47%) and Wockhardt Ltd. (225.65, 0.87%) were trading with volumes 6.6 and 4.7 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

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

Stocks touching their year highs included - Abbott India Ltd. (20,898.70, 0.06%), Apollo Tyres Ltd. (327.40, 0.89%) and Axis Bank Ltd. (949.75, 0.38%).

Stocks making new 52 weeks lows included - Aurobindo Pharma Ltd. (438.20, 0.11%) and Sunteck Realty Ltd. (359.55, -0.83%).

8 stocks climbed above their 200 day SMA including Chemplast Sanmar Ltd. (480.65, 9.64%) and Can Fin Homes Ltd. (546.25, 0.86%). 15 stocks slipped below their 200 SMA including Sonata Software Ltd. (531.55, -2.90%) and Prince Pipes & Fittings Ltd. (602.05, -2.01%).

 
Trendlyne Marketwatch
Trendlyne Marketwatch
19 Dec 2022
Market closes higher, KFin Technologies’ IPO gets bids for 55% of total shares on offer

Trendlyne Analysis

Indian indices closed in the green, with the Nifty 50 rising above the 18,400 mark. European indices traded higher than Friday’s levels. However, most major Asian indices closed lower, in line with the US indices, which extended their losing streak to three days. US stocks fell as investors remained worried about high federal funds rate pushing the US economy into recession. US indices posted losses for a second straight week. The tech-heavy Nasdaq 100 fell 0.8% and the S&P 500 closed over 1.1% lower on Friday. Brent crude oil futures rise nearly 1% after falling over 4% in the last two trading sessions as traders weigh supply and demand concerns amid slowing global economic growth.

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

Nifty 50closed at 18,420.45 (151.5, 0.8%), BSE Sensexclosed at 61,806.19 (468.4, 0.8%) while the broader Nifty 500closed at 15,755.20 (118.9, 0.8%)

Market breadth is in the green. Of the 1,968 stocks traded today, 1,114 were on the uptrend, and 794 went down.

  • Money Flow Index (MFI) indicates that stocks like Central Bank of India, The Fertilisers and Chemicals Travancore, EPLand Rashtriya Chemicals & Fertilizersare in the overbought zone.

  • Elin Electronics, an electronics manufacturing services provider, opens for IPO subscription tomorrow. The price band for the issue is Rs 234-247 per share. The size of the issue is Rs 475 crore, comprising a fresh issue of Rs 175 crore and an offer for sale of Rs 300 crore.

  • Crude oil prices rise amid demand recovery as the US plans to buy back oil to fill its state reserves and China relaxes Covid-19 restrictions.

  • KFin Technologies’ Rs 1,500 crore IPO gets bids for 55% of the available 2.37 crore shares on offer on the first day of bidding. The retail investor quota gets bids for 26% of the available 43.2 lakh shares on offer. The IPO is entirely an offer for sale of Rs 1,500 crore.

  • Metal stocks like Jindal Steel & Power, Hindustan Zinc, Vedanta, National Aluminium Co and Tata Steel are rising in trade. All the constituents of the broader sectoral index BSE Metal are trading in the green.

  • Stocks like Motherson Sumi Wiring India, LTI Mindtree and Easy Trip Planners see their mutual fund holdings rise more than 4% over the past month.

  • Reliance Jio gains 14.1 lakh wireless subscribers in October on a net basis, while Bharti Airtel adds 8.1 lakh and Vodafone Idea loses 35.1 lakh.

  • HDFC Bank nears 52-week high in trade. Reports suggest that the bank plans to issue 10 lakh credit cards every month in an attempt to double the pace of its current issuance. The bank shows up in a screener of stocks with increasing revenue over the past four quarters.

  • Motilal Oswal maintains its ‘Buy’ rating on KNR Constructions with a target price of Rs 310, indicating an upside of 21%. The brokerage is optimistic about the company’s prospects as it expects strong order inflow from the road segment given its robust tender pipeline. It expects a ramp-up in execution and falling input costs to improve profitability in the coming quarters. The brokerage anticipates the company’s revenue to grow at a CAGR of 14.1% over FY22-24.

  • Alembic Pharmaceuticals is falling as the US FDA issues form 483 with five procedural observations. The observations were made after a pre-approval inspection (PAI) at the company's solid oral formulation facility in Jarod.

  • Upasna Bhardwaj, Senior Economist at Kotak Mahindra Bank, expects a decline in the current account deficit if crude oil prices stay at current levels. She adds that the average price for crude oil will be in the range of $100-$105 per barrel.

  • Dilip Buildcon is rising as its bags three contracts from the National Highways Authority of India for new hybrid annuity model projects worth Rs 5,191 crore. The orders pertain to the construction of highways in Karnataka, Chhattisgarh and Telangana. The stock shows up in a screener for companies with improving cash flow from operations in the past two years.

  • KEC International wins new orders worth Rs 1,313 crore across its various businesses. The orders include transmission and distribution projects in India, East Asia Pacific and SAARC, and a 500 MW solar PV project in India.

  • Larsen & Toubro divests its entire 51% stake in L&T Infrastructure Development Projects to Yield Plus II, an infrastructure fund managed by Edelweiss Alternatives. Larsen & Toubro and Canada Pension Plan Investment (holds the remaining 49% stake) will receive Rs 2,723.4 crore from the sale.

  • Glenmark Pharmaceuticals is rising as it receives final approval from the US FDA for nicardipine hydrochloride capsules, a generic version of cardene capsules of Chiesi USA. According to IQVIA, cardene capsules achieved annual sales of $10.9 million over the 12 months ending October 2022.

  • Sugar stocks like Shree Renuka Sugars, EID Parry (India), Balrampur Chini Mills and Triveni Engineering & Industries are rising in trade. All constituents of the broader Sugar industry are also trading in the green. This comes after the GST rate for biofuel supply to refineries for blending ethanol was reduced to 5% from 18%, according to reports.

  • Tech Mahindra plans to divest its entire stake in its wholly owned subsidiary Dynacommerce Holdings B.V. for 6.6 million euros. The company will sell its stake to a subsidiary of Comviva Netherlands B.V.

  • GMR Airports Infrastructure's arm GMR Airports Infrastructure BV receives Rs 1,389.9 crore for the sale of shares in GMR Megawide Cebu Airport Corp and the issuance of exchangeable notes to Aboitiz InfraCapital, according to reports.

  • KFin Technologies raises Rs 675 crore from anchor investors ahead of its IPO by allotting 1.84 crore shares at Rs 366 each. Investors include Carmignac Portfolio, Pinebridge Global Funds and IIFL Special Opportunities Fund.

  • Sun Pharma is falling after its Halol facility received a warning letter from the US FDA on Friday regarding its current goods manufacturing practice (cGMP). This is after the import alert raised by the US FDA on December 08.

  • Phoenix Mills completes the acquisition of a 7.22-acre land parcel through its indirect subsidiary, Thoth Mall and Commercial Real Estate, in Surat. The total value of the acquisition is Rs 510 crore. The company ranks high in the Trendlyne checklist score.

Riding High:

Largecap and midcap gainers today include General Insurance Corporation of India (187.35, 12.42%), Life Insurance Corporation of India (734.60, 6.69%) and PB Fintech Ltd. (485.60, 4.73%).

Downers:

Largecap and midcap losers today include Delhivery Ltd. (353.25, -2.89%), FSN E-Commerce Ventures Ltd. (163.25, -2.86%) and JSW Energy Ltd. (279.90, -2.17%).

Movers and Shakers

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

Top high volume gainers on BSE included General Insurance Corporation of India (187.35, 12.42%), UTI Asset Management Company Ltd. (859.55, 11.45%) and Shipping Corporation of India Ltd. (140.35, 8.76%).

Top high volume losers on BSE were Mahindra Logistics Ltd. (458.30, -2.43%), KPR Mill Ltd. (501.85, -1.99%) and Grindwell Norton Ltd. (1,908.00, -1.76%).

SIS Ltd. (390.60, 0.75%) was trading at 9.4 times of weekly average. Varroc Engineering Ltd. (302.90, 3.95%) and Torrent Power Ltd. (515.20, 0.31%) were trading with volumes 7.2 and 7.1 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

9 stocks took off, crossing 52-week highs, while 9 stocks tanked below their 52-week lows.

Stocks touching their year highs included - Britannia Industries Ltd. (4,526.50, 1.84%), V-Guard Industries Ltd. (271.25, 0.93%) and Engineers India Ltd. (85.55, 4.84%).

Stocks making new 52 weeks lows included - Aurobindo Pharma Ltd. (437.70, -0.94%) and Bata India Ltd. (1,656.00, 1.66%).

10 stocks climbed above their 200 day SMA including IndiaMART InterMESH Ltd. (4,481.15, 3.38%) and Sonata Software Ltd. (547.40, 3.08%). 27 stocks slipped below their 200 SMA including Chemplast Sanmar Ltd. (438.40, -5.05%) and Gujarat State Fertilizer & Chemicals Ltd. (143.75, -2.34%).