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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%).

 
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The Baseline
16 Dec 2022
Five Interesting Stocks Today
  1. Siemens: This heavy electrical equipment stock is trading near its 52-week high after rising for four consecutive sessions since December 7. The uptick came after the company announced that it was the lowest bidder for the 9,000 HP (horsepower) Electric Locomotives project in Dahod, Gujarat. The bid was made for an Indian Railways project estimated at Rs 20,000 crore. Winning this project is expected to improve the company’s revenue. Trendlyne’s Forecaster estimates a 22.9% YoY increase in revenue for the company in FY23.

Indian Railways expects the delivery of its first locomotive by the end of 2024. This will be  a decade-long project for Siemens, and the number of deliveries will increase in the coming years. With an increase in capex from the Centre in railways and infrastructure (upcoming ‘Vande Bharat’ trains, building data centres and e-charging stations, among others), Siemens stands to benefit the most, according to reports.

This has especially enthused brokerages like Prabhudas Lilladher and ICICI Securities who have raised their target price for the stock by 10.9% and 5.7% respectively. Analysts expect that increased government spending in green infrastructure, automation and electrification space will also boost the company’s growth. According to Trendlyne’s Forecaster consensus recommendation, 12 analysts recommend a ‘Buy’ while 6 recommend a ‘Hold’ on the stock.

In its analyst call on December 9, the management of Siemens talks about the growth in their order book in all segments including energy, infrastructure and mobility – which grew 136% YoY in FY22. Total order inflow rose 43% YoY. MD & CEO Sunil Mathur says that the infrastructure space is seeing a boom as global companies are setting up their data centres in India. Automotive, chemicals and even pharma businesses are expected to do well. However, semiconductor shortages, delay in deliveries, high inflation and increase in import costs could still be challenging.

  1. V-Guard Industries: This consumer durable stock rose over 6% in the past week and hit its 52-week high of Rs 273 on Thursday. V-Guard’s share price started to rise after the company announced the acquisition of Sun flame Enterprises Private (SEPL) for Rs 660 crore on December 9. With the recent rise in share price, the company features in a screener of stocks with prices above short, medium and long-term moving averages.

With the acquisition of SEPL, V-Guard is on its way to becoming a significant player in the domestic kitchen appliances segment. SEPL offers a wide product portfolio, including cooktops, chimneys, pressure cookers, mixer grinders and small kitchen appliances, that cater to a wide consumer segment. In FY22, SEPL recorded a revenue of Rs 349.8 crore. V Ramachandran, COO of V-Guard, said, "SEPL acquisition offers multiple levers for unlocking significant synergies in areas like geography, product portfolio and channels.” The management said the acquisition is expected to close by mid-January 2023 and will be funded through a mix of internal accruals and debt.

The acquisition comes at a time when the operating profit margin of V-guard has been on a downtrend since Q3FY21. Gross margin of the company fell 210 bps YoY to 28.6% in Q2FY23 despite a correction in commodity costs due to high cost-inventory. ICICI Securities believes the margins were affected mainly in the cables and wires segment. However, the company’s revenue has risen in the past seven quarters (YoY) and the SEPL acquisition is expected to aid revenue growth going forward.

  1. KEC International: This heavy electrical equipment company rose 10.4% over the past week due to its improving business outlook on the back of rising order intakes and the easing of inflationary pressures. The company’s year-to-date order intake grew 20% YoY to over Rs 13,000 crore. The management aims to increase the value of contracts won by 16.3% YoY to Rs 20,000 crore in FY23. Given the improvement in order intake, its order book, which used to be close to Rs 20,000 crore a year ago, has grown to nearly Rs 29,000 crore. The stock also received seven broker target price upgrades and one recommendation upgrade over the past three months.

Amid this optimism, the company announced new order wins worth Rs 1,349 crore on Monday. These contracts include projects in India and international markets, ranging across various segments like transmission & distribution, infrastructure and cables. This uptrend in price also helped the company show up in a screener for stocks with strong momentum.

In Q2FY23, the company’s net profit fell 31.2% YoY to Rs 55.2 crore despite its revenue rising 13.3% YoY. Its profit fell due to high input costs, logistics costs and subcontracting charges. However, the management expects its margins and profitability to improve due to falling commodity prices and growing order intake. It also plans to lower its interest charges by focusing on debt reduction. According to Nirmal Bang, the company’s margins will improve from Q3FY23 due to falling commodity prices and improving execution of projects. The management has guided a 20% YoY growth in revenue for FY23.

  1. Sapphire Foods India: This quick-service restaurant gained more than 5% in intraday trade on Thursday after it announced that its promoter groups and investors were planning to offload a part of their stakes. The offloading comes after the firm’s pre-IPO lock-in period expired on November 15, thus allowing 43.4% of the total shareholding to be sold. As of September, the promoter groups held a 51.3% stake in the company.

The largest stakeholder, Sapphire Foods Mauritius sold a 6.14% stake (39 lakh shares) for Rs 525.5 crore. Private equity fund Wwd Ruby sold a 4.5% stake for Rs 385.1 crore, effectively paring its stake to 5.3% from 9.8%. Another promoter, Sagista Realty Advisors, which owns a 4.5% stake (28.6 lakh shares) plans to offload 1.5 lakh shares.

In Q2FY23, the company was back in the black on a YoY basis after it posted a profit of Rs 26.9 crore. Its revenue also grew 35.9% YoY to Rs 562.8 crore, the highest-ever. The company shows up in a screener for stocks in the PE Buy zone with a good durability score and rising momentum. The stock also has a consensus recommendation of ‘Buy’, according to Trendlyne’s Forecaster.

However, gross margins fell 310 bps YoY due to high inflation and lower price increases. Although its India business saw its EBITDA grow 40 bps YoY, its Sri Lankan business was adversely impacted by high inflation, which brought down the overall EBITDA margin by 50 bps YoY. Despite high input costs, the company has been focusing on expanding its network; it opened 42 new restaurants in India and Sri Lanka in Q2. The company aims to double its footprint in the next 3-4 years.

  1. Colgate-Palmolive: This personal products company held an investor meet on Tuesday, outlining its growth strategy. During the meet, the management highlighted the four pillars of its growth strategy: toothpaste volume growth, science-led premiumisation, category growth in toothbrushes and devices, and building personal care portfolio. But this did not excite investors as the company’s share price fell over 4% on Wednesday. As a result, it comes up in a screener that lists stocks with RSI indicating price weakness.

The company’s focus areas in its premiumisation plan are powered toothbrushes and teeth whitening products. It plans to set up an exclusive professional eB2B platform for dentists and build a new segment dedicated to kids.

Post this conference, brokerages have mixed views about the company. Foreign brokerage Citi maintains its ‘Sell’ rating on the stock with a target price of Rs 1,650. It believes that driving change in consumer habits will require sustained investments, and the results of the same would be likely delayed.

Prabhudas Lilladher maintains its ‘Hold’ rating on the stock with a target price of Rs 1,639. The brokerage believes Colgate-Palmolive needs to be more aggressive in the personal care segment to boost growth.

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
16 Dec 2022
Market closes lower, Dilip Buildcon wins order worth Rs 976 crore from NHAI

Trendlyne Analysis

Nifty 50fell nearly 150 points and closed below the 18,300 mark on a volatile day of trade. European stocks followed the global trend and traded lower than Thursday’s levels. India's merchandise exports recorded a flat growth YoY at $ 31.99 billion in November, with the merchandise trade deficit narrowing marginally to $23.89 billion from $26.91 billion in the previous month.

Most major Asian indices closed in the red, in line with the US indices, which closed sharply lower on Thursday. US stock fell as investors digested the US Fed’s hawkish commentary. In addition, US retail sales fell more than expected in November, as the holiday season kicked off. The European Central Bank (ECB) raised rates by half a percentage point, its fourth successive hike on Thursday, Brent crude oil futures traded lower but is set for a weekly gain amid supply issues.

Nifty Smallcap 100and Nifty Midcap 100 closed in the red, following the benchmark index. Nifty Metaland Nifty Pharma closed lower than Thursday’s levels. Nifty IT closed in the red, taking cues from the tech-heavy Nasdaq 100 index, which fell over 3.3% on Thursday.

Nifty 50closed at 18,269.00 (-145.9, -0.8%), BSE Sensexclosed at 61,337.81 (-461.2, -0.8%) while the broader Nifty 500closed at 15,636.35 (-147.5, -0.9%)

Market breadth is highly negative. Of the 1,942 stocks traded today, 615 were on the uptrend, and 1,267 went down.

  • Relative strength index(RSI) indicates that stocks like Central Bank of India, Indian Overseas Bank, RBL Bankand General Insurance Corp of Indiaare in the overbought zone.

  • Ashok LeylandbeatsEscorts Kubota in YoY and QoQ revenue and profit growth, MF holdings and broker average rating. But lags in PE ratio, annual RoE and one-year stock price returns.

  • KFin Technologies, a financial services provider, opens for IPO subscription on Monday. The price band for the issue is Rs 347-366 per share and is entirely an offer for sale for Rs 1,500 crore.

  • Raymondand Mahindra CIE Automotivehit their all-time highs of Rs 1,644 and Rs 334 respectively. Raymond rises for three consecutive sessions, while the other trades higher for two sessions.

  • Mutual funds trim stakes in Gujarat Gas, HDFC Life Insurance and ICICI Bank in the past month.

  • Power stocks like ABB India, Adani Transmission, JSW Energy, Siemens and Tata Power are falling in trade. All constituents of the broader sectoral index BSE Power are trading in the red.

  • GMM Pfaudler falls over 18% in the early trade today. Reports suggest that the promoter entity likely sold 1.34 crore shares (29.88% stake) worth Rs 2,278 crore in the company via a block deal.

  • Dilip Buildcon wins an order worth Rs 976 crore from the National Highways Authority of India for four laning of the Mehgama-Hansdila section of NH-133 in Jharkhand.

  • Sugar stocks like Ugar Sugar Works, Bajaj Hindusthan Sugar, Dalmia Bharat Sugar and Industries, and Dhampur Sugar Mills are rising in trade as reports suggest that government may hike sugar export quota.

  • Sunil Bohra, Executive Director and Group CFO of UNO Minda, says that the company targets an EBITDA margin of 11-12% in FY23 and will improve revenues by 1.5X of the industry’s growth. He adds that the company aims to outperform its industry in the next 8-10 years.

  • CAMS rises more than 1.5% in trade in a weak market. The stock is trading above its second resistance or R2 level. It shows up in a screener of stocks with improving RoA for the past two years. The stock ranks medium on the Trendlyne checklist score.

  • Patel Engineering is rising as its board approves raising funds through a rights issue. It plans to raise Rs 350 crore by allotting equity shares with a face value of Rs 1 each to eligible shareholders of the company.

  • Public holder Kravis Investment Partners sells a 1.29% stake (3.6 crore shares) in FSN E-commerce Ventures (Nykaa) for Rs 629.06 crore in a bulk deal.

  • India’s November merchandise exports grew marginally to $32 billion from $29.8 billion in October. Imports stood at $55.9 billion and the trade deficit in November narrowed to $23.9 billion.

  • Promoter Sapphire Foods Mauritius sells a 6.14% stake (39 lakh shares) in Sapphire Foods for Rs 525.5 crore in a bulk deal. Another holder WWD Ruby sells a 4.5% stake in Sapphire Foods for Rs 385.1 crore. The Government of Singapore, PI Opportunities Fund I and Mirae Asset Mutual Funds, among others, pick up the shares.

  • Engineers India is rising as it secures an order from Mundra Solar Technology, a group company of Adani Enterprises. The order pertains to the production of 30,000 metric tonnes per annum (MTPA) of polysilicon and 500 MTPA of monosilane. The stock shows up in a screener for companies with no debt.

  • AIA Engineering acquires a 26% stake in Clean Max Meridus for setting up a Hybrid (solar and wind) Power Plant in Gujarat. AIA Engineering shows up in a screener of stocks with improving book value for the past two years.

  • The Centre slashes the windfall tax on locally produced crude oil to Rs 1,700 per tonne from Rs 4,900 earlier. It cuts the windfall tax on the export of diesel to Rs 5 per litre (including Rs 1.5 as road infrastructure cess) from Rs 8. The windfall tax on aviation turbine fuel (ATF) falls to Rs 1.5 per litre from Rs 5 earlier.

  • Porinju Veliyath buys a 0.5% stake in Max India for approx Rs 2.3 crore in a bulk deal on Thursday.

  • IDBI Bank files an insolvency plea against Zee Entertainment (ZEEL) to recover dues worth Rs 149.6 crore. ZEEL has, however, challenged the plea with the National Company Law Tribunal bench.

  • Hindustan Foodsis acquiring a pharmaceutical factory from Reckitt Benckiser Health in Himachal Pradesh to expand its healthcare and wellness division. The transaction is worth Rs 156 crore and likely to be completed by H2FY23. The company shows up in a screener of stocks with improving annual profits for the past two years.

Riding High:

Largecap and midcap gainers today include Bayer Cropscience Ltd. (4,830.20, 3.84%), Procter & Gamble Hygiene & Healthcare Ltd. (14,400.00, 3.27%) and Tube Investments of India Ltd. (2,921.85, 3.18%).

Downers:

Largecap and midcap losers today include Polycab India Ltd. (2,753.90, -7.63%), Union Bank of India (84.70, -5.94%) and General Insurance Corporation of India (166.65, -5.90%).

Volume Rockets

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

Top high volume gainers on BSE included EPL Ltd. (191.05, 13.86%), Kalyan Jewellers India Ltd. (125.45, 5.46%) and Sterlite Technologies Ltd. (186.65, 5.24%).

Top high volume losers on BSE were GMM Pfaudler Ltd. (1,644.50, -14.56%), Medplus Health Services Ltd. (649.60, -6.31%) and Bharat Electronics Ltd. (99.45, -3.68%).

Dr. Reddy's Laboratories Ltd. (4,309.10, -3.58%) was trading at 12.7 times of weekly average. Deepak Fertilisers & Petrochemicals Corporation Ltd. (820.65, 1.10%) and Krishna Institute of Medical Sciences Ltd. (1,451.80, 2.32%) were trading with volumes 12.2 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 made 52-week highs, while 5 stocks tanked below their 52-week lows.

Stocks touching their year highs included - Aegis Logistics Ltd. (358.20, 3.21%), Apollo Tyres Ltd. (323.05, 0.14%) and Indian Overseas Bank (33.40, -3.88%).

Stocks making new 52 weeks lows included - Aurobindo Pharma Ltd. (441.85, -1.13%) and SIS Ltd. (387.70, -0.46%).

6 stocks climbed above their 200 day SMA including Sterlite Technologies Ltd. (186.65, 5.24%) and Procter & Gamble Hygiene & Healthcare Ltd. (14,400.00, 3.27%). 29 stocks slipped below their 200 SMA including GMM Pfaudler Ltd. (1,644.50, -14.56%) and Avenue Supermarts Ltd. (3,990.00, -4.59%).

 
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The Baseline
15 Dec 2022
Screener of the Week: Rising durable stocks in the PE buy zone, with low volatility 
By Tejas MD

This stock screener looks at PE Buy Zone stocks with high Trendlyne durability scores, which outperformed both the benchmark index and their industry in the past month.

These stocks also have a beta lower than 1, meaning their stock prices are less volatile than the overall market. Beta is a measure of the volatility (or systematic risk) of a company compared to the market as a whole. It is important to note that this doesn't necessarily mean the company has fewer risks. It implies that its systematic market risk is lower compared to the benchmark index. It is possible for a firm to have low systematic risk but high firm-specific risks. 

Just twenty five companies from the Nifty 500 made it to the list. Companies from the pharma and agrochemical industries are well represented. The top two companies that rose the highest, outperforming both the industry and the benchmark, were Bank of Maharashtra and  Sharda Cropchem.

Bank of Maharashtra's share price rose over 50% in the past month. PSU banks have been in the news lately as the industry posted promising Q2FY23 results. Bank of Maharastra's revenue has been increasing for the past eight quarters. In addition, this PSU Bank's asset quality improving with rising net interest margins also excited investors.

Sharda Cropchem rose over 25% in the past month on the back of good Q2FY23 results. However, the company still trades in the PE Buy Zone, which means that its TTM PE ratio is lower than its historical PE ratio. According to Trendlyne's DVM classification, the stock comes under "strong performer, under radar stocks". 

You can find more screeners here.

 
Trendlyne Marketwatch
Trendlyne Marketwatch
15 Dec 2022
Market closes lower, Landmark Cars’ IPO gets bids for 3.1X of the total shares on offer

Trendlyne Analysis

Nifty 50 fell nearly 250 points and closed 1.3% lower, with the volatility index, India VIX, rising sharply. European stocks followed the global trend and traded lower than Wednesday’s levels. Major Asian indices closed lower, in line with the US indices, which closed in the red on Wednesday. US stocks fell after the Fed raised the federal funds rate by an expected 50 basis points. But the Fed’s commentary was more hawkish than expected by analysts. Fed Chair Jerome Powell said the committee wouldn’t consider rate cuts until it is confident that inflation falls to 2% in a sustained way. In reaction, the tech-heavy Nasdaq 100 fell 0.8% and the Dow Jones closed 0.4% lower. Brent crude oil futures traded in the red after rising over 3% on Wednesday due to supply concerns.

Nifty Midcap 100 and Nifty Smallcap 100 closed flat, following the benchmark index. Nifty Pharma and Nifty Energy closed below Wednesday’s levels. Nifty IT closed deep in the red, taking cues from the Nasdaq 100, which fell 0.8% on Wednesday.

Nifty 50closed at 18,414.90 (-245.4, -1.3%), BSE Sensexclosed at 61,799.03 (-878.9, -1.4%) while the broader Nifty 500closed at 15,783.80 (-180, -1.1%)

Market breadth is in the red. Of the 1,935 stocks traded today, 633 showed gains, and 1,255 showed losses.

  • Indian Railway Catering & Tourism Corpsees a short buildup in its December 29 future series as its open interest rises 26.8% with a put-call ratio of 0.51.

  • Credit rating agency ICRA expects NBFCs’ assets to hit Rs 49 lakh crore by March 2024, according to reports. It adds that the NBFCs’ non-performing assets (NPAs) will likely fall by 40 bps YoY to 3.8% by March 2023.

  • Ramkrishna Forgings touches an all-time high of Rs 266.9 in trade today. The company plans to buy a 51% stake in TSUYO Manufacturing, a startup involved in giving powertrain solutions for electric vehicles. It plans to invest nearly Rs 100 crore in the next five years to enhance product portfolio and carry out expansion plans.

  • IDBI Bank surges to hit its 52-week high of Rs 61 in trade today. It shows up in a screener for stocks with high TTM EPS growth. It also ranks high in the Trendlyne checklist with a score of 56% and has good durability and momentum scores.

  • UCO Bank rises as 4.4 crore shares (0.4% equity) amounting to Rs 160.2 crore change hands, according to reports.

  • Fertilizers stocks like Madras Fertilizers, The Fertilisers and Chemicals Travancore, National Fertilizers and Mangalore Chemicals & Fertilizers are rising in trade. The broader sector of fertilizers is also trading in the green.

  • Indian Railway Catering & Tourism Corp (IRCTC) falls as the Centre starts to offload a 2.5% stake to non-retail investors via an offer for sale today. It will sell another 2.5% stake to retail and non-retail investors who wish to carry forward their unallotted bids on Friday. The floor price is set at Rs 680 per share.

  • Landmark Cars’ Rs 552 crore IPO gets bids for 3.1X of the available 80.4 lakh shares on offer on the last day of bidding. The retail investor quota gets bids for 59% of the available 40 lakh shares on offer.

  • Larsen & Toubro’s Hydrocarbon business bags two orders worth Rs 1,000-2,500 crore each. L&T Energy Hydrocarbon - Asset Management, a business vertical, secures its first integrated operations and maintenance order from Vedanta. The firm also won an order for the construction of a Hydrogen Generation Unit from Matheson Tri-Gas, a subsidiary of Nippon Sanso Holdings Corp.

  • Kishor Rungta, Managing Director of The Fertilisers and Chemicals Travancore, says that fertiliser prices are still high even though they have gone down by 15-20%. He adds that the company’s outstanding subsidy stands at Rs 150-200 crore.

  • IT stocks like Tech Mahindra, Infosys, LTIMindtree, Coforgeand Tata Consultancy Servicesare falling in trade. All constituents of the broader sectoral index Nifty IT, barring L&T Technology Services, are trading in the red.

  • eClerx Services' board approves share buyback of 17.15 lakh shares (representing 3.38%) worth up to Rs 300 crore at Rs 1,750 per share. The record date is December 27.

  • ICICI Direct upgrades its rating on V-Guard Industries to ‘Buy’ from ‘Hold’ with a target price of Rs 310, indicating an upside of 19%. The brokerage turns positive on the firm’s prospects after its acquisition of the kitchen appliance company Sunflame. It believes the acquisition will provide V-Guard with significant synergies in aspects such as distribution network and product portfolio. The brokerage expects the company’s net profit to grow at a CAGR of 18.1% over FY22-25.

  • Indian rupee falls to 82.63 from the previous close of 82.46 against the US dollar in early trade. This comes after the US Federal Reserve raises interest rate by 50 bps during the FOMC held on Wednesday.

  • Poonawalla Fincorp is falling as it announces the sale of its housing finance arm, Poonawalla Housing Finance, for Rs 3,900 crore to TPG affiliate Perseus SG. The company believes this transaction will aid in maximising value creation by optimising resource allocation. The company shows up in a screener for stocks with consistently high returns over the past five years.

  • Power Grid Corp of India’s board of directors approves investment of Rs 330.6 crore for the evacuation of power from the renewable energy zone (REZ) in Rajasthan. The stock shows up in a screener for companies with rising quarterly revenue sequentially over the past four quarters.

  • AstraZeneca Pharma India's Managing Director Gagandeep Singh Bedi resigns as he gets transferred to a new position within AstraZeneca Group. His resignation is effective from December 31, 2022.

  • Sapphire Foods’ promoters and shareholders likely offloaded stake in the company, as 68.2 lakh shares (10.7% equity) change hands in a block deal, say reports.

  • Dilip Buildcon rises in early trade after it reports finishing the Gujarat Metro Rail Corp agreement Wednesday. The project cost Rs 1,061 crore.

  • Shriram Properties is rising after it buys the ‘Golden Ira’ project from Golden Gates Group for Rs 125 crore. Golden Ira project is located in North Bangalore with a saleable area of 10 lakh square feet. The company shows up in a screener with improving RoCE in the past two years.

  • Glenmark Pharmaceuticals inks a pact with J.B. Chemicals & Pharmaceuticals to divest its cardiac unit (Razel) in Indian and Nepal markets for Rs 313.7 crore. The transaction is likely to be completed by December-end. The stock shows up in a screener of companies with reducing debt.

Riding High:

Largecap and midcap gainers today include General Insurance Corporation of India (177.10, 10.76%), Indian Overseas Bank (34.75, 7.09%) and IDBI Bank Ltd. (58.75, 2.62%).

Downers:

Largecap and midcap losers today include Indian Railway Catering & Tourism Corporation Ltd. (689.05, -6.24%), Bank of India (94.45, -5.12%) and Tube Investments of India Ltd. (2,831.70, -4.96%).

Volume Rockets

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

Top high volume gainers on BSE included General Insurance Corporation of India (177.10, 10.76%), Mahindra CIE Automotive Ltd. (314.85, 9.72%) and Gujarat State Fertilizer & Chemicals Ltd. (148.90, 6.09%).

Top high volume losers on BSE were Indian Railway Catering & Tourism Corporation Ltd. (689.05, -6.24%), Metropolis Healthcare Ltd. (1,322.10, -3.65%) and Brigade Enterprises Ltd. (457.00, -3.59%).

Johnson Controls-Hitachi Air Conditioning India Ltd. (1,170.00, 0.61%) was trading at 22.2 times of weekly average. Sapphire Foods India Ltd. (1,397.50, 2.74%) and PNC Infratech Ltd. (297.70, 3.19%) were trading with volumes 16.0 and 11.6 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

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

Stocks touching their year highs included - Apollo Tyres Ltd. (322.60, 1.02%), Bank of India (94.45, -5.12%) and Bank of Maharashtra (34.35, 0.73%).

Stocks making new 52 weeks lows included - Aurobindo Pharma Ltd. (446.90, -1.67%) and Metropolis Healthcare Ltd. (1,322.10, -3.65%).

15 stocks climbed above their 200 day SMA including Gujarat State Fertilizer & Chemicals Ltd. (148.90, 6.09%) and Sterlite Technologies Ltd. (177.35, 4.11%). 13 stocks slipped below their 200 SMA including Indian Railway Catering & Tourism Corporation Ltd. (689.05, -6.24%) and PVR Ltd. (1,810.10, -3.48%).

 
Trendlyne Marketwatch
Trendlyne Marketwatch
14 Dec 2022
Market closes higher, India's WPI inflation eases to 5.85% in November

Trendlyne Analysis

Indian indices closed in the green with the Nifty 50 rising over 50 points and closing above the 18,650 mark. UK inflation fell to 10.7% in November from October’s 41-year high of 11.1%. European stocks bucked the global trend and traded lower than Tuesday's levels. Major Asian indices closed in the green, in line with the US indices which closed higher on Tuesday. US consumer price index (CPI) rose 7.1% YoY in November, down from 7.7% in October, rising expectations that the Federal Reserve is about to reduce the size of its interest rate hikes going forward. In reaction, the tech-heavy Nasdaq 100 index rose 1.1% while the Dow Jones settled 0.3% higher. Brent crude oil futures traded marginally higher after rising nearly 3% on Tuesday.

Nifty Smallcap 100and Nifty Midcap 100 closed in the green, following the benchmark index. Nifty Bankand Nifty Auto closed higher than Tuesday’s levels. Nifty IT closed in the green, taking cues from the tech-heavy Nasdaq 100, which rose over 1% on Tuesday.

Nifty 50closed at 18,660.30 (52.3, 0.3%), BSE Sensexclosed at 62,677.91 (144.6, 0.2%) while the broader Nifty 500closed at 15,963.80 (59.3, 0.4%)

Market breadth is in the green. Of the 1,939 stocks traded today, 1,035 were gainers and 848 were losers.

  • Jubilant FoodworksbeatsDevyani International in QoQ profit growth, annual RoCE and FII holdings. But lags in YoY revenue & profit growth, annual RoE, and broker average rating.

  • HG Infra Engineering is rising as it bags a hybrid annuity mode project worth Rs 743.7 crore from the National Highways Authority of India. The stock shows up in a screener for companies with improving RoA over the last two years.

  • Coal India issues letters of acceptance for seven coal projects which will be carried out through mine developer and operators (MDO). Together the projects will have a production capacity of 100 million tonnes per year. The company shows up in a screener of stocks with high revenue and high return on capital deployed.

  • Advertising & Media, Roads & Highways and Fertilizer industries rise more than 13% in the past month.

  • Landmark Cars’ Rs 552 crore IPO gets bids for 39% of the available 80.4 lakh shares on offer on the second day of bidding. The retail investor quota gets bids for 36% of the available 40 lakh shares on offer.

  • ICICI Securities maintains its ‘Buy’ rating on Havells India with a target price of Rs 1,550. This implies an upside of 32.8%. The brokerage believes the company’s focus on rural expansion and improving market presence in the mass products category will be the key growth drivers in the long term. It expects the firm’s net profit to grow at a CAGR of 21.4% over FY22-24.

  • Sula Vineyards’ Rs 960.3 crore IPO gets bids for 2.3X of the available 1.8 crore shares on offer on the last day of bidding. The retail investor quota gets bids for 1.7X the available 94.1 lakh shares on offer.

  • India’s Wholesale Price Index (WPI) inflation eases to a 21-month low of 5.85% in November compared to 8.39% in October. The decline is because of a fall in prices of food articles, basic metals and textiles, among others.

  • Mahindra & Mahindra receives approval from the Maharashtra government to invest Rs 10,000 crore over the next 7-8 years for setting up an electric vehicle manufacturing facility in Pune. The stock ranks high in the Trendlyne checklist as it checks 69.57% of the parameters. It also shows up in a screener for companies with high TTM EPS growth.

  • Nifty Bank hits an all-time high of 44,127.1. The index rises for three consecutive sessions.

  • Siddharth Mishra, Chairman and Managing Director of Bharat Dynamics, says that the company’s current order book stands at Rs 12,000 crore and expects it to increase to Rs 20,000 crore by FY24. He adds that the Ministry of Defence aims to reduce imports of defence products.

  • Yes Bank is falling as its board approves the allotment of 184.8 crore equity shares each to CA Basque Investments and Verventa Holdings with an issue price of Rs 13.78 per share. Allotment of 128 crore share warrants each to the companies has also been approved.

  • Realty stocks like Phoenix Mills, Indiabulls Real Estate, DLF and Macrotech Developers are rising in trade. The broader sectoral index BSE Realty is also trading in the green.

  • HDFC Bank is rising as it acquires a 7.75% stake in a fintech startup, Mintoak. The deal is likely to be completed by January 31, 2023. The bank ranks high in the Trendlyne checklist and is trading near its 52-week high.

  • Morgan Stanley initiates an ‘Underweight’ rating on Yes Bank with a target price of Rs 20.5. The brokerage expects gradual recovery in its Return on Assets (ROA) to 1% by FY25, as credit costs reduce.

  • IFB Industries will infuse Rs 97 crore in its promoter group company IFB Refrigeration in two tranches. IFB Industries shows up in a screener of companies with low debt.

  • Colgate-Palmolive falls more than 2.5% in trade today. The stock has a high durability score but ranks low on valuation. It shows up in a screener where FIIs increased their holdings QoQ and brokerages upgraded their target price for the stock.

  • Indian rupee rises to 82.60 from the previous close of 82.81 against the US dollar in early trade today.

  • Bank of Baroda’s board approves divestment of 98.57% stake in Nainital Bank. The company shows up in a screener with improving cash flow and durability.

  • General Atlantic Singapore Fund sells a 3.5% stake (31.1 lakh shares) in IIFL Wealth Management for Rs 564 crore in a bulk deal. Meanwhile, Capital Income Builder picks up a 3.4% stake in IIFL Wealth Management for Rs 550.8 crore.

  • The board of One97 Communications(Paytm) approves a share buyback proposal. The company will buy back 1.05 crore shares for Rs 810 per share, which is worth Rs 850 crore. It shows up in a screener of stocks with falling book value per share.

Riding High:

Largecap and midcap gainers today include Vodafone Idea Ltd. (8.65, 9.49%), General Insurance Corporation of India (159.90, 8.96%) and The New India Assurance Company Ltd. (122.45, 8.94%).

Downers:

Largecap and midcap losers today include YES Bank Ltd. (22.10, -7.72%), Colgate-Palmolive (India) Ltd. (1,571.50, -4.30%) and Page Industries Ltd. (45,201.00, -3.37%).

Movers and Shakers

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

Top high volume gainers on BSE included UCO Bank (33.25, 14.46%), Hathway Cable & Datacom Ltd. (19.15, 10.69%) and Vodafone Idea Ltd. (8.65, 9.49%).

Top high volume losers on BSE were Page Industries Ltd. (45,201.00, -3.37%), Bayer Cropscience Ltd. (46,79.55, -0.97%) and TCI Express Ltd. (1,812.00, -0.93%).

PNB Housing Finance Ltd. (481.05, 8.58%) was trading at 19.3 times of weekly average. General Insurance Corporation of India (159.90, 8.96%) and KIOCL Ltd. (223.30, 7.46%) were trading with volumes 16.2 and 13.7 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

32 stocks took off, crossing 52-week highs, while 1 stock was an underachiever and hit its 52-week low.

Stocks touching their year highs included - Abbott India Ltd. (20,563.35, -1.32%), Axis Bank Ltd. (942.40, -0.23%) and Bank of Maharashtra (34.10, 4.44%).

Stock making new 52 weeks lows included - Vodafone Idea Ltd. (8.65, 9.49%).

24 stocks climbed above their 200 day SMA including Hathway Cable & Datacom Ltd. (19.15, 10.69%) and Network 18 Media & Investments Ltd. (75.40, 4.50%). 4 stocks slipped below their 200 SMA including Page Industries Ltd. (45,201.00, -3.37%) and Procter & Gamble Hygiene & Healthcare Ltd. (14,090.00, -0.92%).

 
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The Baseline
13 Dec 2022
Five Analyst Picks with High Durability Scores
By Suhas Reddy

This week we take a look at five analyst picks with high Trendlyne Durability scores. A high durability score (>60) indicates a company with strong financial health and management quality.

  1. Greenpanel Industries: BOB Capital maintains a ‘Buy’ call on this forest products manufacturer with a target price of Rs 595. This indicates an upside of 72%. Greenpanel Industries has a Trendlyne Durability score of 90. 

After an interaction with Greenpanel’s CFO Venkatramani, analyst Ruchitaa Maheshwari said, “Greenpanel Industries has strong growth prospects due to its leadership position in India’s fast-growing, medium-density fibreboard (MDF) market, coupled with an improving balance sheet and return ratios.” The forest products manufacturer's management is optimistic about demand recovery in Q4 despite MDF and plywood businesses slowing down due to the festival season in Q3.

The company has plans to incur capex to the tune of Rs 600 crore for new MDF brownfield capacity and add 400 dealers to the MDF business, as well as 40-50 dealers to plywood by the end of FY23. Maheshwari models revenue and profit CAGR of 13% and 15% over FY22-24, aided by better capacity utilisation at the MDF facility and EBITDA margins from operating leverage.

  1. Central Bank of India: LKP Securities recommends a ‘Buy’ on this bank with a target price of Rs 37, indicating an upside of 9%. The bank has a Trendlyne Durability score of 75. 

Analyst Ajit Kumar Kabi is optimistic about the bank as it returned to profitability in FY22, after incurring losses in FY16. It also reported consistent growth in net profit over the past six quarters. He said the bank has been reporting stable credit growth with an improving cash deposit ratio, and its recovery is in line with the guidance. 

On the back of the digital lending platform, Kabi expects the bank’s loan book to fatten cautiously. “We believe that the asset quality hurdles are behind it and the bank will witness gradual improvement in profitability,” he concluded.

  1. Solar Industries India: ICICI Securities upgrades its rating on this explosives manufacturer to ‘Buy’ from ‘Hold’ and raises its target price to Rs 4,760 from Rs 4,225. This indicates an upside of 16.3%. Solar Industries has a Trendlyne Durability score of 70.

Analysts Amit Dixit, Mohit Lohia and Pritish Urumkar believe that the company is well-placed to capitalise on the expected ramp-up in orders from the defence sector. They are positive about the firm’s prospects, given its strong technological capabilities, growing order book and focus on the high-margin defence explosives segment. They added, “The company has sufficient capacity, expertise and land bank to increase revenue contribution from the high-margin defence business.”

The analysts also expect Solar Industries’ export book to surge from its current level of Rs 300 crore in the coming years. This is due to its product expertise on missiles and rockets fitting well into the Centre’s push towards indigenisation and increasing defence exports. They expect the company’s net profit to grow at a CAGR of 47.2% over FY22-24.

  1. ICICI Bank: IDBI Capital maintains its ‘Buy’ rating on this large-cap bank with a target price of Rs 1,260. This indicates an upside of 35.4%. In Q2FY23, the company’s standalone net profit grew 37.1% YoY to Rs 7,557.8 crore and revenue rose 22.6% YoY. ICICI Bank has a Trendlyne Durability score of 65. 

Analysts at IDBI Capital believe that the bank’s focus on improving digitalisation and technological capabilities will aid this leg of growth. It also aims to improve customer experience and simplify all processes from boarding to servicing through digitalisation. “The bank has created a position of Chief Data Officer for the same and increased its technology spend as a percentage of operating expenses to 9% (vs 6% in FY20). It expects the spend to remain at elevated levels in near future,” they added. The analysts expect the bank’s net profit to grow at a CAGR of 20.1% over FY22-25. 

  1. Motherson Sumi Wiring India: ICICI Direct maintains its ‘Buy’ rating on this auto parts & equipment manufacturer with a target price of Rs 75, indicating an upside of 25.9%. Motherson Sumi Wiring India has a Trendlyne Durability score of 60.

Analysts Shashank Kanodia and Raghvendra Goyal believe that the company is “a good proxy to play upon the recovery in the domestic automobile space with a superlative return ratio profile (RoCE of 40-50%) and structural levers for long-term growth”. They expect the company to benefit in the long term on the back of increasing components per vehicle along with increasing electrification. 

The analysts also pointed out that the company is committed to achieving an annual revenue of $36 billion by FY25 and intensifying expansion into non-auto-related segments. They expect the company’s net profit to grow at a CAGR of 25.9% over FY22-25. 

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

(You can find all analyst picks here)

 
Trendlyne Marketwatch
Trendlyne Marketwatch
13 Dec 2022
Market closes higher, Landmark Cars’ IPO gets bids for 17% of total shares

Trendlyne Analysis

Indian indices closed in the green, with the Nifty 50closing just above the 18,600 mark. European stocks followed the global trend and traded higher than Monday’s level. India’s retail inflation eased to an 11-month low of 5.88% in November amid cooling commodity prices. The inflation print came under the RBI’s upper tolerance limit of 6% for the first time this year. However, India’s industrial output contracted by 4% in October, its weakest performance in over two years.

Most major Asian indices closed in the green, in line with the US indices, which closed higher on Monday. US stocks rose as investors look ahead to the key inflation report to be released later today and the Fed’s rate decision scheduled on Wednesday. The tech-heavy NASDAQ 100 rose 1.2% while the Dow Jones closed 1.6% higher. Brent crude oil futures rise over 1.8% due to the outage of a key crude oil pipeline supplying the United States.

Nifty Smallcap 100and Nifty Midcap 100closed in the green, following the benchmark index. Nifty Bankand Nifty Autoclosed higher than Monday’s levels. Nifty ITclosed in the green, taking cues from the tech-heavy NASDAQ 100, which rose over 1.2% on Monday.

Nifty 50closed at 18,608.00 (110.9, 0.6%), BSE Sensexclosed at 62,533.30 (402.7, 0.7%) while the broader Nifty 500closed at 15,904.50 (76.5, 0.5%)

Market breadth is in the green. Of the 1,940 stocks traded today, 988 were in the positive territory and 894 were negative.

  • Relative strength index(RSI) indicates that stocks like YES Bank, Central Bank of India, Bank of Barodaand JK Lakshmi Cementare in the overbought zone.

  • Great Eastern Shipping Co and The Fertilisers and Chemicals Travancore hit their all-time highs of Rs 727.9 and Rs 192.7 respectively. Both stocks rise for two consecutive sessions.

  • Vedantarises as it signs three MoUs (memorandum of understanding) with Japanese Tech Firms for the development of Indian semiconductor and glass display manufacturing project. The project has the potential to generate business worth Rs 3.3 lakh crore, according to reports.

  • Landmark Cars’ Rs 552 crore IPO gets bids for 17% of the available 80.4 lakh shares on offer on the first day of bidding. The retail investor quota gets bids for 17% of the available 40 lakh shares on offer. The IPO is a fresh issue of Rs 150 crore and an offer for sale of Rs 402 crore.

  • IT stocks like Infosys, HCL Technologies, Coforge and Tata Consultancy Services are rising in trade. The broader sectoral index Nifty IT is also trading in the green.

  • The Society of Indian Automobile Manufacturers (SIAM) data show a 20% YoY rise in auto sales to 15.6 lakh units in November. Two-wheeler sales increased 17% YoY to 12.4 lakh units and passenger cars, 29% YoY.

  • Sula Vineyards’ Rs 960.3 crore IPO gets bids for 59% of the available 1.8 crore shares on offer on the second day of bidding. The retail investor quota gets bids for 99% of the available 94.1 lakh shares on offer.

  • Bandhan Bank is rising as its receives claims worth Rs 916.6 crore under the Centre’s trust fund. The fund is for guaranteeing payment against loan defaults.

  • UCO Bank surges and hits a 52-week high of Rs 27.7 in trade today. It shows up in a screener of stocks trading higher than their second resistance or R2 level. It ranks high in the Trendlyne checklist with a score of 78.26%.

  • Tata Motors rises as its board gives in-principle approval to partially divest its stake in Tata Technologies. Tata Motors held a 72.5% stake in Tata Technologies at the end of FY22. Tata Technologies is likely to go public in FY23.

  • Laurus Labs hits a 52-week low of Rs 388.2 and is one of the top loser stocks in trade today. It shows up in a screener of stocks where promoters increased their pledged shares QoQ. It ranks low in the Trendlyne checklist. The stock is trading below its historic averages and falls in the PE Buy Zone.

  • Sheela Foam rises after it announces December 22 as record date for its bonus issue of shares. It shows up in a screener of stocks with highest returns over the past five years.

  • Indian rupee depreciates 10 paise to 82.64 from the previous close of 82.54 against the US dollar in early trade today amid strong demand for the dollar.

  • Godrej Agrovet sells land measuring approx 3.92 acres in Ambattur, Tamil Nadu, for Rs 71.36 crore. 

  • V-Guard Industries is rising as it plans to acquire a 100% stake in Sunflame Enterprises for Rs 660 crore. The transaction is likely to be completed by mid-January 2023. The company shows up in a screener of stocks with improving book value for the past two years.

  • India’s CPI inflation eases to an 11-month low of 5.88% in November compared to 6.77% in October. The fall comes after a decline in global commodity and food prices. Meanwhile, India’s index of industrial production (IIP) contracted by 4% in October. Contraction in IIP implies a decline in industrial or manufacturing activity.

  • Porinju Veliyath sells a 0.1% stake in HPL Electric & Power on Thursday, he now holds 0.91% in the company.

  • Landmark Cars raises Rs 165.3 crore from anchor investors ahead of its IPO by allotting 32.6 lakh shares at Rs 506 per share. Investors include Aditya Birla Sun Life, Pinebridge Global Funds and Edelweiss.

  • Dalmia Cement, a wholly owned subsidiary of Dalmia Bharat will acquire cement, clinker and power plants from Jaiprakash Associates for a value of Rs 5,666 crore. Jaiprakash Associates has plants with a total cement capacity of 9.4 million tonnes in Madhya Pradesh, Uttar Pradesh and Chattisgarh. This acquisition will help Dalmia expand into the Central India region.

  • KEC International bags new orders worth Rs 1,349 crore across its businesses. The orders pertain to transmission and distribution projects in India, SAARC, the Middle East and the USA. It also won orders in the civil construction and cables segment.

Riding High:

Largecap and midcap gainers today include Indian Overseas Bank (30.85, 14.90%), YES Bank Ltd. (23.95, 13.51%) and Tata Communications Ltd. (1,367.45, 7.06%).

Downers:

Largecap and midcap losers today include Macrotech Developers Ltd. (1,026.85, -5.21%), Laurus Labs Ltd. (391.05, -3.27%) and Dr. Lal Pathlabs Ltd. (2,358.80, -2.81%).

Movers and Shakers

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

Top high volume gainers on BSE included Housing and Urban Development Corporation Ltd. (55.05, 11.66%), Indian Bank (294.00, 9.17%) and CSB Bank Ltd. (258.35, 7.40%).

Top high volume losers on BSE were GHCL Ltd. (513.10, -6.30%), Laurus Labs Ltd. (391.05, -3.27%) and Dalmia Bharat Ltd. (1,856.05, -2.64%).

IIFL Wealth Management Ltd. (1,827.00, 2.94%) was trading at 19.2 times of weekly average. Tata Communications Ltd. (1,367.45, 7.06%) and Sheela Foam Ltd. (2590.00, -0.35%) were trading with volumes 12.9 and 10.7 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

29 stocks overperformed with 52-week highs, while 2 stocks tanked below their 52-week lows.

Stocks touching their year highs included - Aegis Logistics Ltd. (362.40, 6.87%), Apollo Tyres Ltd. (318.30, -1.49%) and Axis Bank Ltd. (944.60, 0.63%).

Stocks making new 52 weeks lows included - Laurus Labs Ltd. (391.05, -3.27%) and Polyplex Corporation Ltd. (1,671.85, -1.76%).

20 stocks climbed above their 200 day SMA including Birla Corporation Ltd. (1,041.95, 3.42%) and CESC Ltd. (78.85, 2.87%). 9 stocks slipped below their 200 SMA including Macrotech Developers Ltd. (1,026.85, -5.21%) and Chemplast Sanmar Ltd. (469.60, -2.84%).

 
Trendlyne Marketwatch
Trendlyne Marketwatch
12 Dec 2022
Market closes flat, Sula Vineyards’ IPO gets bids for 28% of total shares on offer

Trendlyne Analysis

Indian indices recovered from their day’s low and closed flat on a volatile day of trade. European stocks followed the global trend and traded lower than Friday's levels. UK’s GDP rose for the first time in four months in October. The Office for National Statistics reported that UK’s GDP rose 0.5% in October 2022, following a fall of 0.6% in September 2022.

Major Asian indices closed lower, in line with the US indices, which closed in the red on Friday. US stocks fell as investors looked ahead to the expected 50 basis points rate hike by the US Fed to be announced later this week. The tech-heavy Nasdaq 100 index fell 0.6% while the Dow Jones closed 0.9% lower on Friday. US Treasury Secretary Janet Yellen expects US inflation to reduce substantially in 2023, barring an unexpected shock. Brent crude oil futures traded lower after plunging over 10% last week as slowing global economic growth hurt crude oil demand.

Nifty Smallcap 100 and Nifty Midcap 100 closed in the green, despite the benchmark index closing flat. Nifty Bank and Nifty Energy closed higher than Friday's levels. Nifty IT closed in the red after falling over 6% last week, taking cues from the Nasdaq 100, which lost over 3.5% last week.

Nifty 50closed at 18,497.15 (0.6, 0%), BSE Sensexclosed at 62,130.57 (-51.1, -0.1%) while the broader Nifty 500closed at 15,828.00 (15.3, 0.1%)

Market breadth is in the green. Of the 1,965 stocks traded today, 1,026 showed gains, and 877 showed losses.

  • Infosyssees a short buildup in its December 29 future series as its open interest rises 11.1% with a put-call ratio of 0.41.

  • Honeywell Automation India is rising as Nomura expects a recovery in the services and exports segment to improve the company’s margins in H2FY23, according to reports. The brokerage has a ‘Buy’ rating on the stock and revised the target price to Rs 50,642.

  • Oil and Natural Gas Corp (ONGC) is rising as it plans to invest Rs 2,150 crore to drill 53 exploratory wells in Andhra Pradesh, according to reports. The wells will be dug in the Godavari KG basin block and the Cuddapah basin block. ONGC currently produces 700 tonnes of oil from the KG basin.

  • Laurus Labs and Rossari Biotech hit their 52-week lows of Rs 402.6 and Rs 648 respectively. Laurus Labs falls for six consecutive sessions, while Rossari Biotech trades lower for three sessions.

  • Pradeep Kumar Patel, VP of Morbi Ceramic Association, expects exports to increase to 40-50% by next year. He adds that most firms prefer natural gas over propane and if there are price cuts, companies would shift back to using natural gas.

  • ICICI Direct maintains ‘Buy’ on Bharat Forge with a target price upside of 22%. The brokerage expects its defence segment to bring in more orders from the Centre in the coming years. It expects the EBITDA margin to increase to 19% by FY25E.

  • Sula Vineyards’ Rs 960.3 crore IPO gets bids for 28% of the available 1.8 crore shares on offer on the first day of bidding. The retail investor quota gets bids for 48% of the available 94.1 lakh shares on offer. The IPO is entirely an offer for sale of Rs 960.3 crore.

  • Glenmark Pharmaceuticals is falling as the USFDA issues a warning against the company for manufacturing lapses like failure to establish required laboratory control mechanisms at its plant in Goa, according to reports.

  • Oil and gas stocks like Hindustan Petroleum Corp, GAIL (India), Indian Oil Corp and Oil And Natural Gas Corp are rising in trade. The broader sectoral index BSE Oil & Gas is also trading in the green.

  • YES Bank touches a 52-week high and gains more than 20% in one week. The rise comes after the bank got Reserve Bank of India's approval to raise funds from Carlyle Group and Verventa Holdings. Reports suggest this will improve the bank’s asset quality.

  • Punjab National Bank is rising as JP Morgan upgrades its rating on the stock to ‘Overweight’ from ‘Underweight’ and raises the target price to Rs 72. The brokerage says that the bank’s net slippages have gone down to negative and there is minimal stress in corporate loans.

  • One97 Communications (Paytm) loan disbursals grow 150% YoY to 68 lakhs in November. The value of loans disbursed increases by 374% YoY. Over 55 lakh merchants now pay subscription for payment devices, a rise from 16 lakh in November 2021. The stock shows up in a screener with improving cash flow from operations for the past two years.

  • Va Tech Wabag's European arm wins repeat order worth Rs 260 crore from Purolite for industrial wastewater treatment in Romania.

  • Inox Leasing and Finance, promoter of Gujarat Fluorochemicals, sells a 0.3% stake in the company for approx Rs 96.9 crore. It now owns a 52.61% stake.

  • Indian rupee falls to 82.60 from the previous close of 82.27 against the US dollar in early trade today.

  • Ashish Kacholia buys a 0.83% stake in Aditya Vision for approx Rs 14.7 crore in a bulk deal on Friday.

  • Zydus Lifesciences gets US FDA approval to market silodosin and pregabalin capsules. Silodosin will be used to treat enlarged prostrate glands and pregabalin for nerve damage caused by diabetes. According to IQVIA, silodosin has a market size of $14 million, while pregabalin’s sales were at $242 million for 12 months ending September.

  • Nalin Singhal, Managing Director and Chairman of Bharat Heavy Electricals, says that the pressure on margins is likely to continue over the next two years. He says Q2FY23 margins were hit because of high commodity prices. The company has also signed a memorandum of understanding with Coal India for its ammonium nitrate plant.

  • Uniparts India’s shares list at a 0.3% discount to the issue price of Rs 577 on its debut on the bourses. The 835.6 crore IPO was subscribed for 25.3X the total shares on offer.

  • Sula Vineyards raises Rs 288.1 crore from anchor investors ahead of its IPO by allotting 80.7 lakh shares at Rs 357 per share. Investors include Goldman Sachs, New York State Teachers Retirement System and HDFC Life Insurance.

  • PSP Projects wins an order from Nila Spaces worth Rs 121.5 crore for constructing the core and shell of high-rise residential towers at GIFT city, Gandhinagar. The total order inflow for FY23 stands at Rs 1,833.09 crore. The stock shows up in a screener of companies with low debt.

Riding High:

Largecap and midcap gainers today include Indian Railway Finance Corporation Ltd. (33.40, 7.57%), YES Bank Ltd. (21.10, 7.11%) and Hindustan Petroleum Corporation Ltd. (251.90, 4.96%).

Downers:

Largecap and midcap losers today include Godrej Consumer Products Ltd. (895.35, -3.06%), One97 Communications Ltd. (528.75, -2.91%) and Dixon Technologies (India) Ltd. (3,988.85, -2.80%).

Volume Rockets

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

Top high volume gainers on BSE included Hitachi Energy India Ltd. (3,320.00, 7.89%), IRB Infrastructure Developers Ltd. (299.45, 5.74%) and Supreme Industries Ltd. (2,536.30, 4.76%).

Top high volume losers on BSE were Sun Pharma Advanced Research Company Ltd. (220.75, -6.26%), Metropolis Healthcare Ltd. (1,368.75, -3.40%) and Fine Organic Industries Ltd. (5,816.35, -3.19%).

Cholamandalam Financial Holdings Ltd. (594.90, -1.30%) was trading at 6.4 times of weekly average. GlaxoSmithKline Pharmaceuticals Ltd. (1,330.45, -0.09%) and Birla Corporation Ltd. (1,007.45, 2.39%) were trading with volumes 5.2 and 4.4 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

13 stocks took off, crossing 52-week highs, while 2 stocks tanked below their 52-week lows.

Stocks touching their year highs included - Apollo Tyres Ltd. (323.10, 2.26%), IRB Infrastructure Developers Ltd. (299.45, 5.74%) and Lakshmi Machine Works Ltd. (13,710.00, 0.27%).

Stocks making new 52 weeks lows included - Laurus Labs Ltd. (404.25, -2.05%) and Rossari Biotech Ltd. (772.00, -1.10%).

14 stocks climbed above their 200 day SMA including Hitachi Energy India Ltd. (3,320.00, 7.89%) and Chemplast Sanmar Ltd. (492.00, 7.38%). 17 stocks slipped below their 200 SMA including Sun Pharma Advanced Research Company Ltd. (220.75, -6.26%) and Dixon Technologies (India) Ltd. (3,988.85, -2.80%).