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Trendlyne Marketwatch
Trendlyne Marketwatch
30 Dec 2022
Market closes lower, Kalpataru Power Transmission wins multiple orders worth Rs 1,247 crore

Trendlyne Analysis

Indian indices fell from their day’s high and closed lower on the final trading session of the year. In 2022, the benchmark index Nifty 50closed around 4% higher. European stocks traded lower than Thursday’s levels. India's current account deficit widened in Q2FY23 to $ 36.4 billion (4.4% of GDP), up from $ 18.2 billion (2.2% of GDP) in Q1 as per RBI's balance of payments (BoP) data.

Most major Asian indices closed in the green, in line with the US indices, which also closed higher on Thursday. US stocks rose as an increase in jobless claims indicated some cooling in the economy, which could prompt the US Fed to rethink about the interest rate hikes going forward. The tech-heavy Nasdaq 100 rose 2.5% while the Dow Jones closed over 1% higher. Crude oil is set to post a weekly loss after posting a 6.7% rise in the previous week.

Nifty Midcap 100and Nifty Smallcap 100 closed in the green, despite the benchmark index closing in the red. Nifty Metal and Nifty Realty closed higher than Thursday’s levels. Nifty IT closed in the green, taking cues from the Nasdaq 100, which closed in the green on Thursday.

Nifty 50closed at 18,105.30 (-85.7, -0.5%), BSE Sensexclosed at 60,840.74 (-293.1, -0.5%) while the broader Nifty 500closed at 15,448.85 (-36.4, -0.2%)

Market breadth is in the green. Of the 1,942 stocks traded today, 1,224 were gainers and 667 were losers.

  • Money Flow Index (MFI) indicates that The Fertilisers and Chemicals Travancoreis in the overbought zone.

  • Kalpataru Power Transmission is rising as the company and its international subsidiaries win multiple orders worth Rs 1,247 crore. Manish Mohnot, Managing Director and Chief Executive Officer of the company, said, "We expect T&D ordering momentum to remain robust given the thrust on renewables and upgradation of T&D infrastructure in India and International markets."

  • Defence stocks like Bharat Electronics, Bharat Dynamicsand Hindustan Aeronauticsare rising in trade. All constituents of the broader defence industryare also trading in the green.

  • Sah Polymers’ Rs 66.3 crore IPO gets bids for 86% of the available 56.1 lakh shares on offer on the first day of bidding. The retail investor quota gets bids for 2.07X the available 10.2 lakh shares on offer. The IPO is entirely a fresh issue of Rs 66.3 crore.

  • RBI's December edition of the Financial Stability Report says that the gross NPA of banks fell to a 7-year low of 5% in September 2022. It expects the capital adequacy ratio to fall to 14.9% in September 2023.

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

  • RBL Bank touches a 52-week high of Rs 180.4 and continues to rise in trade today. It shows up in a screener of stocks with the highest recovery from a 52-week low. The stock has a high valuation and momentum score above 70.

  • Fertilizersindustry rises more than 13% in the past month, while edible oils and other non-ferrous metals industries grow more than 7%.

  • Elin Electonics’ shares list at a discount of 1.2% to the issue price of Rs 247 on its debut on the bourses. The Rs 475 crore IPO was subscribed for 3.1X the total shares on offer.

  • Ajay Singh Bhutoria, Chief Executive Officer and Managing Director at Zensar Technologies, resigns due to personal reasons. His resignation is effective from December 31, 2022.

  • Craftsman Automation is surging as it enters an agreement to acquire 8.6 crore shares (or 76% stake) in DR Axion India for Rs 375 crore. The company features in a screener of stocks with improving return on equity (RoE) over the past two years.

  • Cipla's arm Cipla EU agrees to invest 15 million euros in Ethris to facilitate a strategic partnership for the development of messenger RNA-based therapies.

  • Mahesh Nandurkar, Head of Research and MD at Jefferies India, says that FIIs and domestic investors are bullish on banks. He adds that rising interest rates caused worries in 2022.

  • According to Trendlyne's FII dashboard, foreign institutional investors pull out a total of Rs 907.2 crore from the equity market over the past week. However, index options receive the highest inflow of Rs 3,965.9 crore from foreign investors.

  • Reliance Ventures’ subsidiary Reliance Consumer Products agrees to buy a 51% stake in Lotus Chocolate Co for Rs 74 crore. It will also make an open offer to buy a 26% stake to gather capital for the growth and expansion of Lotus Chocolate Co.

  • India’s current account deficit stands at $36.4 billion (4.4% of the GDP) during Q2FY23, a sharp rise from $18.2 billion in Q1.

  • HG Infra Engineering is up 4% after it wins an order from the National Highway Authority of India for the construction of a 6-lane ring road in Haryana. The estimated cost of the project is Rs 743.7 crore.

  • Skipper wins new order worth Rs 2,570 crore from BSNL for supply and erection of ground-based telecom towers, infrastructure as a service provider for supply, installation of infrastructure items, and subsequent operations and maintenance for five years in the uncovered villages of India under 4G saturation projects.

  • Sah Polymers raises Rs 30 crore from anchor investors ahead of its IPO by allotting 45.9 lakh shares at Rs 65 per equity share. Only three investors invested in the company—Leading Light Fund VCC, Saint Capital Fund, and Maven India Fund.

  • Eicher Motorsis set to acquire a 10.35% stake in Spain-based electric motorcycle manufacturer Stark Future for 50 million euros (Rs 441.7 crore). The company believes the investment will enable long-term collaborative opportunities in developing and manufacturing electric motorcycles.

Riding High:

Largecap and midcap gainers today include General Insurance Corporation of India (178.75, 6.43%), Shriram Finance Ltd. (1,376.90, 4.93%) and Canara Bank (333.30, 3.78%).

Downers:

Largecap and midcap losers today include Max Healthcare Institute Ltd. (439.55, -3.24%), Adani Transmission Ltd. (2,589.25, -3.01%) and Adani Total Gas Ltd. (3,692.85, -2.64%).

Volume Shockers

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

Top high volume gainers on BSE included Hikal Ltd. (410.10, 12.00%), The New India Assurance Company Ltd. (125.75, 9.02%) and Eureka Forbes Ltd. (482.80, 8.37%).

Top high volume losers on BSE were Procter & Gamble Health Ltd. (3,953.00, -4.56%), Cholamandalam Financial Holdings Ltd. (550.55, -2.16%) and Nesco Ltd. (611.00, -0.07%).

Gujarat Pipavav Port Ltd. (100.65, 7.59%) was trading at 27.8 times of weekly average. Eris Lifesciences Ltd. (648.00, 1.51%) and Metro Brands Ltd. (883.50, 2.97%) were trading with volumes 10.6 and 7.7 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

6 stocks hit their 52-week highs, while 2 stocks tanked below their 52-week lows.

Stocks touching their year highs included - Canara Bank (333.30, 3.78%), Gujarat Pipavav Port Ltd. (100.65, 7.59%) and REC Ltd. (116.50, 2.33%).

Stocks making new 52 weeks lows included - Cholamandalam Financial Holdings Ltd. (550.55, -2.16%) and Procter & Gamble Health Ltd. (3,953.00, -4.56%).

20 stocks climbed above their 200 day SMA including KNR Constructions Ltd. (254.85, 2.85%) and VST Industries Ltd. (3,315.95, 2.78%). 3 stocks slipped below their 200 SMA including Aptus Value Housing Finance India Ltd. (303.80, -3.06%) and Marico Ltd. (509.85, -1.08%).

 
Trendlyne Marketwatch
Trendlyne Marketwatch
29 Dec 2022
Market closes higher, JSW Energy acquires 95% stake in Ind-Barath Energy for Rs 1,047.6 crore

Trendlyne Analysis

Indian indices closed in the green with the Nifty 50 closing just below the 18,200 mark. European stocks followed the global trend and traded lower than Wednesday’s levels. Asian indices closed in the red, in line with the US indices, which closed lower on Wednesday. The S&P 500 is set to post its biggest yearly fall since 2008. US stocks fell on Wednesday as investors remain concerned about the possibility of a recession in 2023 due to continued US Fed rate hikes. The tech-heavy Nasdaq 100 index fell over 1.3% while the Dow Jones closed 1.1% lower. Brent crude oil futures traded lower after falling over 1.4% on Wednesday.

Nifty Smallcap 100 closed in the green, following the benchmark index. Nifty Metal and Nifty Bankclosed higher than Wednesday’s levels. Nifty IT closed in the green.

Nifty 50closed at 18,191.00 (68.5, 0.4%), BSE Sensexclosed at 61,133.88 (223.6, 0.4%) while the broader Nifty 500closed at 15,485.20 (52.4, 0.3%)

Market breadth is balanced. Of the 1,943 stocks traded today, 980 were gainers and 896 were losers.

  • Relative strength index(RSI) indicates that The Fertilisers and Chemicals Travancoreis in the overbought zone.

  • Sah Polymers, a manufacturer of plastic packaging products, opens for IPO subscription tomorrow. The size of the issue is Rs 66.3 crore, comprising entirely of a fresh issue. The price band is Rs 61-65 per share.

  • Motilal Oswal maintains ‘Buy’ on Axis Bank. Expects the bank’s loans to grow by 14-18%. It also expects an improvement in RoE and opex ratios.

  • Jindal Stainlessrises 4% in a weak market, touching a 52-week high of Rs 242.5. The stock shows up in a screener with consistent returns over the past five years. It ranks high in the Trendlyne checklist score.

  • The Fertilisers and Chemicals Travancore and Kalyan Jewellers India hit their all-time highs of Rs 355.7 and Rs 134.2 respectively. Both stocks rise for four consecutive sessions.

  • Transformers & Rectifiers (India) is rising as it bags orders for transformers worth Rs 123 crore. The company’s total order book now stands at Rs 1,513 crore. The stock shows up in a screener for companies with high TTM EPS growth.

  • Tata Consumer Products’ step-down subsidiary decides to buy a 23.3% stake in Joekels Tea Packers from Joekels joint venture partners. This will increase the subsidiary’s holding in Joekels to 75% from 51.7%. The cost of this transaction is Rs 43.65 crore.

  • Aman Desai, Founder & Director of Aether Industries, says global demand and supply chains are recovering to normal levels. The company adds 11 customers in Q2FY23 and plans to keep research & development (R&D) expenses between 6-8%.

  • GMM Pfaudler, Easy Trip Planners and Brightcom Group fall more than 19% in a month, underperforming General Industrials and Software & Services sectors.

  • Tata Power’s arm Tata Power Renewable Energy bags an order from Tata Power Delhi Distribution. The order pertains to setting up a 255 MW hybrid (wind and solar) power project in Karnataka. With this, its total renewables capacity reaches 6,048 MW.

  • ICICI Securities maintains its ‘Buy’ rating on Prince Pipes and Fittings with a target price of Rs 691, indicating an upside of 19.1%. The brokerage expects strong sales volume growth in H2FY23 due to demand growth led by declining polyvinyl chloride (PVC) prices. It also sees margins improving in the near term due to high inventory costs falling from Q4 onwards. The brokerage estimates the firm’s net profit to grow at a CAGR of 45.6% over FY23-25.

  • Realty stocks like Godrej Properties, DLF and Macrotech Developers are falling in trade as the government hikes land compensation for farmers to Rs 5,324 per square metre. The broader BSE Realty index is also trading in the red.

  • Spandana Sphoorty rises and hits upper circuit after its board approved the transfer of its stressed loan portfolio, including written-off loans amounting to Rs 323.1 crore to an asset reconstruction company for Rs 95 crore. The company shows up in a screener for stocks with improving book value per share over the past two years.

  • JSW Energy acquires 95% equity shares of 700 MW Ind-Barath Energy for Rs 1,047.6 crore through the corporate insolvency resolution process.

  • Media stocks like PVR, Inox Leisure, Network 18 Media & Investments, Nazara Technologies and TV18 Broadcast are falling in trade. All constituents of the broader sectoral index Nifty Media are also trading in the red.

  • Ashoka Buildcon rises as it bags three projects worth Rs 754.6 crore from Madhya Pradesh Poorv Kshetra Vidyut Vitaran Co. The orders involve the installation of transmission lines in Madhya Pradesh. The company shows up in a screener for stocks in the PE Buy zone with a good durability score and rising momentum.

  • Rishi Vora, VP at Kotak Securities, says that growth for the auto sector will moderate in FY24. He adds that emission and safety norms will increase the cost of vehicles, and the pent-up demand is likely to wane. He also expects demand for passenger vehicles to moderate in FY24.

  • Rising Sun Holdings, promoter of Poonawalla Fincorp, buys a 0.57% stake in the company for approx Rs 124.9 crore on Wednesday.

  • KFin Technologies’ shares list at a marginal premium of 0.3% to the issue price of Rs 366 on its debut on the bourses. The Rs 1,500 crore IPO was subscribed for 2.6X the total shares on offer.

  • Promoter Rishab Family Trust sells 4.9 lakh shares more (0.03% stake) in Bajaj Finserv for Rs 75.3 crore in a block deal on Wednesday.

  • Godrej Properties acquires 9 acres of land in Gurugram for the development of premium residential projects. The estimated revenue potential from this project is Rs 2,500 crore. The company shows up in a screener of stocks with zero promoter pledges.

Riding High:

Largecap and midcap gainers today include Adani Total Gas Ltd. (3,793.00, 5.19%), FSN E-Commerce Ventures Ltd. (158.10, 4.88%) and Adani Wilmar Ltd. (605.20, 4.65%).

Downers:

Largecap and midcap losers today include Shriram Finance Ltd. (1,312.25, -5.50%), Shree Cements Ltd. (23,256.75, -4.23%) and Page Industries Ltd. (43,264.35, -2.97%).

Volume Shockers

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

Top high volume gainers on BSE included Jindal Stainless (Hisar) Ltd. (426.05, 7.44%), Aptus Value Housing Finance India Ltd. (313.40, 6.96%) and KEC International Ltd. (504.75, 6.12%).

Top high volume losers on BSE were Shriram Finance Ltd. (1,312.25, -5.50%), Shree Cements Ltd. (23,256.75, -4.23%) and Medplus Health Services Ltd. (623.30, -2.05%).

Crisil Ltd. (2,996.75, 4.95%) was trading at 9.7 times of weekly average. Bajaj Auto Ltd. (3,568.80, -0.50%) and Jindal Stainless Ltd. (226.30, 3.22%) were trading with volumes 4.9 and 4.5 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

7 stocks took off, crossing 52-week highs, while 4 stocks hit their 52-week lows.

Stocks touching their year highs included - Jindal Steel & Power Ltd. (589.35, 1.93%), RBL Bank Ltd. (176.50, 1.99%) and Jindal Stainless Ltd. (226.30, 3.22%).

Stocks making new 52 weeks lows included - Cholamandalam Financial Holdings Ltd. (566.00, 0.00%) and Gland Pharma Ltd. (1,578.30, 0.31%).

10 stocks climbed above their 200 day SMA including Aptus Value Housing Finance India Ltd. (313.40, 6.96%) and Avenue Supermarts Ltd. (4,178.30, 4.00%). 20 stocks slipped below their 200 SMA including Shyam Metalics and Energy Ltd. (306.20, -2.27%) and KNR Constructions Ltd. (247.80, -1.37%).

 
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The Baseline
29 Dec 2022
Screener of the week: Top-performing stocks over the past year with high durability score
By Abdullah Shah

As 2022 comes to an end, we look at financially stocks that gained the most in the year. We use this screener (this is a subscriber screener - get access to this and 500+ others with new year discounts now live on plans).

The screener finds stocks that have 1) risen over the past year 2) have good Trendlyne durability scores and 3) have high analyst estimates for one-year forward annual revenue growth.

The screener lists 41 stocks from the Nifty 500 and four from the Nifty 50 index. Major industries in the screener are banks, non-alcoholic beverages, shipping, hotels, and two and three-wheelers. The most notable stocks in the screener are Varun Beverages, Karur Vysya Bank, Great Eastern Shipping, Indian Hotels, Solar Industries India and TVS Motor. 

Share prices of Karur Vysya Bank and Varun Beverages have increased 140%, the highest among the Nifty 500 stocks in 2022. Karur Vysya Bank’s forecaster estimate for annual revenue growth is at 28.4% YoY, while Varun Beverages is at 46.8% YoY.

Varun Beverages, the Pepsico franchisee, is planning to focus on the non-beverages segment in the international market. It intends to begin distribution of Lays, Doritos and Cheetos from January 2023 in Morocco. Karur Vysya Bank and Varun Beverages have high Trendlyne durability scores of 60 and 70 respectively.

Great Eastern Shipping’s share price has also risen 125%. The shipping company’s forecaster estimate for annual revenue growth is impressive, at 68.9% YoY. According to Ventura, the company will benefit from operating leverage from the rise in freight rates, and from the appreciation in the value of its fleet. 

You can find more screeners here.

 
Trendlyne Marketwatch
Trendlyne Marketwatch
28 Dec 2022
Market closes flat, RBL Bank touches a 52-week high

Trendlyne Analysis

Nifty 50 closed flat after switching between losses and gains on a volatile day of trade. European stocks followed the global trend and traded lower than Tuesday’s levels. Most major Asian indices closed in the red, in line with the US indices, which also closed mostly lower on a volatile day of trade. US indices fell after the long holiday weekend led by heavyweights like Tesla and Apple. Tesla plunged over 11% after a report of a plan to temporarily halt production at its Shanghai factory. Brent crude oil futures traded lower as traders assessed slowing global economic growth and supply concerns.

Nifty Smallcap 100 and Nifty Midcap 100closed flat, following the benchmark index. Nifty Energy and Nifty Realty closed lower than their Tuesday levels. Nifty IT closed in the red, taking cues from the Nasdaq 100, which closed 1.5% lower on Tuesday.

Nifty 50closed at 18,122.50 (-9.8, -0.1%), BSE Sensexclosed at 60,910.28 (-17.2, 0.0%) while the broader Nifty 500closed at 15,432.80 (14.5, 0.1%)

Market breadth is in the green. Of the 1,932 stocks traded today, 1,115 were on the uptick, and 760 were down.

  • Tube Investments of IndiabeatsBoschin YoY net profit growth, Trendlyne’s durability score, one-year price change and broker average rating. But lags in YoY revenue growth, QoQ net profit growth and PE ratio.

  • Bharat Forge sees five broker target price upgrades, while Axis Bankand Siemenssee four upgrades.

  • RBL Bank rises for three consecutive sessions and touches its 52-week highof Rs 174.2 today. The stock ranks high on Trendlyne’s checklistwith a score of 54.2%. It also features in a screenerof companies with improving net cash flow for the last two years.

  • Sheela Foam rises as the company plans to acquire its competitor Kurlon for Rs 2,000 crore, say reports. The combined entity will have a market share of more than 50% in the organised mattress space.

  • Adani Enterprises acquires an analytics and decision support company, SIBIA Analytics & Consulting Services, for Rs 14.8 crore. It believes this transaction will enhance its artificial intelligence and machine learning capabilities.

  • Commercial services and supplies, hardware technology and equipment, and telecommunications equipmentsectors fall by more than 5% over the week.

  • Crude oil prices trade near their 3-week high as China plans to scrap quarantine for inbound travelers. The rise is also because of Russia’s plans to cut oil exports by 5-7% during the early phase of 2023.

  • Page Industries, Atul and Pidilite Industries are trading above their second resistance or R2 levels.

  • DLF, Divi’s Laboratories and Bank of Baroda’s annual RoE improves to 4.1%, 25.2% and 8.5%, respectively, over the past two years.

  • ICICI Securities maintains its ‘Buy’ rating on Oil and Natural Gas Corp with a target price of Rs 195, indicating an upside of 35.4%. The brokerage anticipates an improvement in the company’s operating performance on the back of an increase in production, favourable gas prices and higher realisations. It expects the firm’s net profit to grow at a CAGR of 18.5% over FY22-24.

  • Hariom Pipe Industries rises as it enters into an asset transfer agreement with RP Metal Sections for Rs 55 crore. The company is set to purchase operating assets that manufacture galvanized pipe and cold roll coil. The stock shows up in a screener for companies with strong annual EPS growth.

  • PSU bank stocks like Punjab & Sind Bank, Central Bank of India, Bank of Barodaand Canara Bankare rising in trade. The broader sectoral index Nifty PSU Bankis also trading in the green.

  • Pramod Agrawal, Chairman of Coal India, says the company will attain its 700 million tonne production target in FY23. Coal India contributes to more than 80% of the domestic coal output.

  • Reserve Bank of India approves the reappointment of Baskar Babu Ramachandran as the Managing Director and Chief Executive Officer of Suryoday Small Finance Bank for three years, with effect from January 23.

  • Pharmaceutical company Jubilant Pharmova is rising in trade in a volatile market. However, the stock shows up in a screener with declining profits for the past two quarters. It ranks medium on the Trendlyne Checklist score.

  • Power stocks like Adani Power, CG Power & Industrial Solutions, Adani Transmission, NHPC, and Power Grid Corp of India are rising in trade. All the constituents of the broader sectoral index BSE Power are also trading in the green.

  • Adani Wilmar rises over 4% in trade as 13.8 lakh shares (0.1% equity) amounting to Rs 80 crore change hands, according to reports.

  • Promoter Rishab Family Trust sells 6.5 lakh shares (0.04% stake) in Bajaj Finserv for Rs 100 crore in a block deal on Tuesday. Promoter Jamnalal Sons Private picks up the shares.

  • Ashish Kacholia sells a 0.64% stake in S P Apparels for approx Rs 5.1 crore in a bulk deal on Tuesday.

  • Punjab & Sind Bank’s board plans to meet on Friday to discuss raising funds worth Rs 250 crore through equity and bonds issuance. Issue of equity shares will be via Follow on Public Order (FPO), rights issue, institutional placement or preferential issue. It shows up in a screener of stocks gaining more than 20% in one month.

  • The Ministry of External Affairs appoints Rail Vikas Nigam as the project implementation agency for the development of UTF Harbor in the Maldives. The project is worth Rs 1,544.6 crore and is expected to be executed over 24 months.

Riding High:

Largecap and midcap gainers today include Adani Total Gas Ltd. (3,605.80, 7.54%), Macrotech Developers Ltd. (1,084.00, 5.27%) and JSW Energy Ltd. (283.90, 5.17%).

Downers:

Largecap and midcap losers today include Union Bank of India (79.40, -4.05%), Indian Overseas Bank (32.15, -3.45%) and Honeywell Automation India Ltd. (41,235.95, -2.33%).

Crowd Puller Stocks

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

Top high volume gainers on BSE included Rashtriya Chemicals & Fertilizers Ltd. (133.80, 14.85%), Gujarat State Fertilizer & Chemicals Ltd. (140.35, 10.21%) and Saregama India Ltd. (395.20, 7.57%).

Top high volume losers on BSE were Amara Raja Batteries Ltd. (569.80, -3.24%), Procter & Gamble Hygiene & Healthcare Ltd. (14,055.00, -0.32%) and SKF India Ltd. (4,576.50, -0.10%).

Rossari Biotech Ltd. (754.60, 5.98%) was trading at 15.8 times of weekly average. Grindwell Norton Ltd. (1,795.00, -0.10%) and Rites Ltd. (335.95, 6.99%) were trading with volumes 3.7 and 3.7 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

4 stocks overperformed with 52-week highs, while 2 stocks were underachievers and hit their 52-week lows.

Stocks touching their year highs included - Jindal Steel & Power Ltd. (578.20, 0.39%), RBL Bank Ltd. (173.05, 4.00%) and Capri Global Capital Ltd. (775.45, 0.28%).

Stocks making new 52 weeks lows included - Gland Pharma Ltd. (1,573.35, -0.65%) and C.E. Info Systems Ltd. (1059.00, -3.67%).

24 stocks climbed above their 200 day SMA including Macrotech Developers Ltd. (1,084.00, 5.27%) and KNR Constructions Ltd. (252.95, 4.01%). 13 stocks slipped below their 200 SMA including L&T Technology Services Ltd. (3,700.10, -1.92%) and Avenue Supermarts Ltd. (4,017.75, -1.40%).

 
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The Baseline
27 Dec 2022
Five analyst picks as India benefits from China plus One
By Suhas Reddy
  1. Sheela Foam: ICICI Direct maintains its ‘Buy’ rating on this foam manufacturer with a target price of Rs 1,650. This indicates an upside of 27.4%. Analysts Sanjay Manyal, Hitesh Taunk and Ashwi Bhansali expect the Indian mattresses industry to grow at a CAGR of 12% over FY22-26. They see organised firms like Sheela Foam “gaining market share through new product launches and strong balance sheet conditions”. The analysts are also positive about the company’s plan to capitalise on the China Plus One strategy to increase its exports to US markets. 

Manyal, Taunk and Bhansali believe the recent order win to supply foam to Indian Railways and the revival in demand for automobiles bode well for the firm’s foam business vertical. The company has planned a capex of Rs 350 crore for the next two years to expand manufacturing capacity by 23%. The analysts anticipate that Sheela Foam’s net profit will grow at a CAGR of 22% over FY22-24.  

  1. NOCIL: Motilal Oswal keeps its ‘Buy’ rating on this specialty chemicals company with a target price of Rs 283, implying an upside of 22.5%. Analysts Swarnendu Bhushan and Rohit Rajendra Thorat believe the company will gain market share in the coming quarters on the back of new product launches and debottlenecking. “NOCIL currently has 5-6% of the global market share in the rubber chemicals space and looks to grow this to a double-digit figure,” they added. The analysts think the company will likely benefit from the China Plus One and Europe Plus One strategies. 

Bhushan and Thorat write that the management expects the export market to improve, as latex demand has bottomed out. They also expect an improvement in margins on the back of declining commodity costs. The analysts estimate NOCIL’s revenue to grow at a CAGR of 16.2% over FY22-24.

  1. Dr. Reddy's Laboratories: Sharekhan maintains its ‘Buy’ rating on this pharmaceutical giant with a target price of Rs 5,460, indicating an upside of 28.5%. Analysts at Sharekhan are positive about the company’s prospects due to robust growth in its US market segment after the launch of gRevlimid in limited quantities. They also write that “the launch will continue to help it grow profitably strong over the next two quarters and continue to gain from the sales of gRevlimid in a limited quantity until FY26''. The firm also launched six new products in the US, they added. 

The analysts believe Dr. Reddy’s strong product pipeline gives them healthy revenue growth visibility over FY23-25. They add that the company is also banking on the Indian market to drive growth as they plan to launch 15-20 new products. The analysts expect the firm’s revenue to grow at a CAGR of 14.4% over FY22-25.  

  1. Narayana Hrudayalaya: Prabhudas Lilladher maintains a ‘Buy’ call on this multi-speciality hospitals chain with a target price of Rs 920, indicating an upside of 21.5%. Analysts Param Desai and Sanketa Kohale say, “Narayana Hrudayalaya’s profitability across India and Cayman was strong in H1FY23 (up 44% YoY) and we expect this growth momentum to sustain.” 

Desai and Kohale believe “faster ramp up in the new Cayman unit will be key”. After reopening tourism, Cayman’s business has shown strong growth, and volumes continue to remain healthy. The company’s management is confident of the sustainability of current profitability, and analysts also expect the current quarterly run-rate of $10-12 million EBITDA to sustain.

The management has guided a capex of Rs 1,000 crore annually in FY23 and FY24. Meanwhile, the analysts say that “the capex spend would be towards its core and high performing regions such as Bangalore, Kolkata and Cayman”, which they say will enhance growth visibility. Desai and Kohale expect an EBITDA CAGR of 22% over FY22-25.

  1. Hindalco Industries: Axis Direct recommends a ‘Buy’ call on this aluminium manufacturer with a target price of Rs 502. This indicates an upside of 13.3%. The production cost of aluminium increased by 20% QoQ in Q2FY23 due to higher energy costs but the management expects ease in coal prices and supply to guide a 2-5% decrease in Q3FY23. The analysts at Axis Direct expect Hindalco’s arm Novelis’ EBITDA per tonne to inch up to $525 by the end of FY23 from $514 in Q2FY23. 

The management stated that they will pace the growth capex with cash flows to keep net debt/EBITDA within 2.5x at Novelis. The analysts write, “Hindalco is a defensive play backed by stable cash flows and lower operational and financial leverage”. They conclude, “Aluminium is expected to find support from peaking of the US dollar and China easing its Zero Covid policy.”

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

(You can find all analyst picks here)

 
Trendlyne Marketwatch
Trendlyne Marketwatch
27 Dec 2022
Market closes higher, Radiant Cash Management’s IPO gets bids for 46% of total shares

Trendlyne Analysis

Indian indices closed in the green with the Nifty 50 closing above the 18,100 mark. European stocks traded higher than their previous closing levels. India’s forex reserves fall after rising for five straight weeks. Foreign exchange reserves fall by $ 571 million to $ 563.5 billion in the week ending December 16. Major Asian indices trade in the green, taking cues from the US indices’ futures, which are trading higher. Several global markets were closed due holiday on Monday. Crude oil prices traded marginally higher as traders continue to weigh the falling demand in China due to rising Covid cases with supply concerns in the US.

Nifty Smallcap 100 and Nifty Midcap 100 closed in the green, following the benchmark index. Nifty Metal and Nifty Auto closed higher than Monday’s levels. Nifty IT closed in the green, taking cues from the Nasdaq 100 futures, which is trading higher.

Nifty 50 closed at 18,132.30 (117.7, 0.7%) , BSE Sensex closed at 60,927.43 (361.0, 0.6%) while the broader Nifty 500 closed at 15,418.35 (119.8, 0.8%)

Market breadth is ticking up strongly. Of the 1,933 stocks traded today, 1,493 showed gains, and 398 showed losses.

  • Relative strength index(RSI) indicates that Abbott Indiais in the overbought zone.

  • The Central government is considering removing the 2.5% basic customs duty on manganese and chrome ores. It will help steel plants deal with the supply shortage of raw materials. The Nifty Metal index rises 4.2% in trade today.

  • Axis Direct maintains its ‘Buy’ rating on JK Cement with a target price of Rs 3,350. This indicates an upside of 10.9%. The brokerage believes the firm’s acquisition of Acro Paint will enable it to expand its product portfolio and market footprint in the coming quarters. It expects the company to leverage its robust dealer network and strong market presence to augment the paint segment. The brokerage anticipates the company’s net profit to grow at a CAGR of 22.6%.

  • Larsen & Toubro is rising as its power & transmission business wins multiple orders worth Rs 1,000-2,500 crore. In India, the company gets orders to build a 90 MW floating solar photovoltaic plant at the Omkareshwar dam in Madhya Pradesh and develop distribution infrastructure in Uttar Pradesh. In the international market, the projects involve the development of transmission lines and a substation.

  • Radiant Cash Management’s Rs 387.9 crore IPO gets bids for 46% of the available 2.7 crore shares on offer on the last day of bidding. The retail investor quota gets bids for 20% of the available 1.37 crore shares on offer.

  • Capacit’e Infraprojects is rising after winning a repeat order worth Rs 625 crore from the Saifee Burhani Upliftment Trust. The project is for the construction of core and shell work in Mumbai. The company shows up in a screener of stocks with improving cash flow and a strong durability score.

  • Analysts are bullish on ICICI Bank, Larsen & Toubro and Mahindra & Mahindra with a broker recommendation consensus of 'Strong Buy' on each of the stocks.

  • Fertilizers, Cement & Construction and Metals & Mining sectors rise more than 30% in the past 180 days.

  • Motilal Oswal initiates coverage on Poonawalla Fincorp with a 'Buy' rating and a target price of Rs 350. This indicates a potential upside of 42%. The brokerage believes that the company will earn from its fee income and operating cost ratios and improve return on equity (RoE). It estimates the company's asset under management (AUM) to grow at a CAGR of 37% over FY22-25.

  • Central Bank of India acquires the remaining 35.6% stake in Cent Bank Home Finance from the National Housing Bank, Specified Undertaking of Unit Trust of India and HUDC.

  • Deepak Fertilisers & Petrochemicals Corp falls in a volatile market today. However, the stock ranks high in Trendlyne Checklist, Durability and Valuation scores. The stock is trading below its historical averages and is in the PE Buy Zone.

  • Sugar stocks like Uttam Sugar Mills, Dhampur Bio Organics, Shree Renuka Sugars and Triveni Engineering & Industries are rising in trade in anticipation of an increase in export quota by the Centre.

  • Venkatraman Narayanan, Managing Director and Chief Financial Officer (CFO) of Happiest Minds Tech, says that there will be a marginal reduction in revenue in Q3FY23 owing to fewer working days. The company is on track to meet its revenue guidance of 25% for FY23 and long-term margin guidance of 22-24%.

  • Time Technoplast surges as it receives repeat order worth approx Rs 75 crore from Adani Total Gas for the supply of CNG cascades made from type-IV composite cylinders. The delivery of the cascades will begin in January 2023.

  • Laurus Labs is falling after announcing that a flash fire occurred in its API manufacturing plant in Visakhapatnam, Andhra Pradesh. Four employees die in the fire incident and one is undergoing treatment. The company estimates no material impact on its operations.

  • Metal stocks like National Aluminium, Jindal Steel & Power, Hindustan Copper and Steel Authority of India (SAIL) are rising in trade. The broader sectoral index Nifty Metal is also trading in the green.

  • Rohan Verma, CEO of MapmyIndia, says that the core business margin stands at 55%, and the company continues to invest in future growth opportunities. It plans to cut down marketing expenses to meet its goals in FY23.

  • Oil exploration & production and refineries stocks rise as brent crude inches towards the $85 mark. Stocks like Oil and Natural Gas Corp, Oil India, Mangalore Refinery and Petroleum are trading in the green.

  • Noida Authority sends a notice to DLF to pay Rs 325 crore as compensation to the owner of the land where the Mall of India is constructed. The company, however, is waiting to receive a communication from the authorities. The stock is trading flat in a rising market.

  • NTPC signs an MoU with Tecnimont, the Indian arm of Italy-based Maire Tecnimont Group, to evaluate and explore the possibility of commercial-scale green methanol production in India. The stock shows up in a screener for companies with improving cash flow from operations for the past two years.

Riding High:

Largecap and midcap gainers today include Jindal Steel & Power Ltd. (575.95, 9.01%), Indian Overseas Bank (33.30, 6.73%) and Hindalco Industries Ltd. (471.00, 6.33%).

Downers:

Largecap and midcap losers today include Varun Beverages Ltd. (1,318.90, -2.50%), Crompton Greaves Consumer Electricals Ltd. (338.45, -1.87%) and Laurus Labs Ltd. (374.70, -1.85%).

Volume Shockers

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

Top high volume gainers on BSE included KIOCL Ltd. (212.60, 10.38%), Jindal Steel & Power Ltd. (575.95, 9.01%) and CCL Products India Ltd. (561.65, 8.45%).

TTK Prestige Ltd. (817.30, 6.56%) was trading at 26.4 times of weekly average. Privi Speciality Chemicals Ltd. (1,171.90, 8.00%) and HEG Ltd. (1,041.25, 8.11%) were trading with volumes 9.2 and 8.7 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

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

Stocks touching their year highs included - CCL Products India Ltd. (561.65, 8.45%) and Jindal Steel & Power Ltd. (575.95, 9.01%).

Stock making new 52 weeks lows included - Laurus Labs Ltd. (374.70, -1.85%).

45 stocks climbed above their 200 day SMA including KIOCL Ltd. (212.60, 10.38%) and Hindalco Industries Ltd. (471.00, 6.33%). 7 stocks slipped below their 200 SMA including Ajanta Pharma Ltd. (1,165.35, -1.77%) and Jubilant Pharmova Ltd. (376.70, -0.91%).

 
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The Baseline created a screener Consistent financial performers among …
27 Dec 2022
Stocks that have performed consistently and have strong financial health both short and long term, with some technical momentum
 
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%).