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We take a look at five stocks that have been rising over 5% in the past month, with analyst ‘Buy’ calls.

1. Oil And Natural Gas Corp: HDFC Securities maintains its ‘Buy’ rating on this oil & gas exploration & production company with a target price of Rs 169. This indicates an upside of 24.8%. In Q2FY23, the company’s net profit fell 54% YoY to Rs 8,299.4 crore and revenue rose 38.2% YoY.  

Analysts Harshad Katkar, Nilesh Ghuge, Akshay Mane and Rutvi Chokshi are positive about the company due to an improvement in crude oil realisations and domestic gas price realisations. 

The analysts were also positively surprised by the firm’s standalone Q2FY23 results, as it beat their net profit estimates. They attribute this outperformance to “lower-than-expected statutory levies, lower employee cost, lower depreciation, depletion & amortisation costs and higher other income”. The analysts find the management’s crude oil and gas production guidance for FY23, FY24 and FY25 encouraging. They expect the company’s revenue to grow at a CAGR of 10.6% over FY22-25.

2. Hindustan Aeronautics: ICICI Direct maintains its ‘Buy’ rating on this defence company with a target price of Rs 3,300. This indicates an upside of 24.3%. In Q2FY23, its net profit rose 44.2% YoY to Rs 1,221.2 crore despite its revenue declining 7.3% YoY. 

Analysts Chirag Shah and Vijay Goel said the firm’s EBITDA margins also grew by 919 bps YoY to 31.5%. They attributed the improvement in profitability and margins to lower other costs and a higher share of revenue contribution from the maintenance, repair & overhaul (MRO) segment.  

Shah and Goel believe the company’s revenue growth in the coming quarters will be driven by its healthy order book, which stands at Rs 83,800 crore. They also expect a continuous order inflow in the MRO segment to bolster the order pipeline. The analysts added that “execution of other key orders and sustained growth in MRO will drive revenue growth in double digits from FY25”. They estimate the company’s net profit to grow at a CAGR of 11.8% over FY23-25.    

3. Bharat Forge: Prabhudas Lilladher reiterates its ‘Buy’ call on this forging company with a target price of Rs 950, indicating an upside of 14.9%. The stock price rose by 6.4% during the past month. The company’s net profit in Q2FY23 fell by 46.2% YoY to Rs 145.9 crore despite a 28.1% YoY rise in revenue to Rs 3,122.3 crore. According to analyst Mansi Lall, the poor performance was caused by high raw material costs and a one-time charge of Rs 13 crore on a defence business. 

Bharat Forge won export orders for passenger vehicles and industrial segments, as well as a defence export order worth $155 million for artillery products to be executed over the next three years. Lall said, “The management highlighted that near-term demand for commercial vehicles looks positive in both India and export markets.” She remains optimistic on the back of a “positive outlook for the automotive industry as semiconductor supply issue eases out along with healthy order wins in the industrial space”.

4. Bharat Heavy Electricals: ICICI Securities maintains a ‘Buy’ call on this industrial valve manufacturer with a target price of Rs 100, indicating an upside of 38.8%.The stock rose by 5.7% in the past month. In Q2FY23, the company reported a net profit of Rs 12.1 crore, as against a loss in the previous year, while its revenue increased marginally to Rs 5,418.7 crore. 

Bharat Heavy Electricals’ order inflow during Q2FY23 stood at Rs 12,000 crore and the total order book now stands at Rs 1.06 lakh crore. Rahul Modi, Ashwani Sharma and Aashna Manaktala said, “Given the addition of new orders with favourable payment terms, we expect execution to gather pace, followed by margin improvement supported by the recent correction in commodity prices.” 

The valve manufacturer's trade receivables declined 8% but overall receivables grew 8% YoY. The analysts concluded that Bharat Heavy Electricals’ efforts to improve cash flow and reduce receivables could achieve sustainable and profitable growth. 

5. Manappuram Finance: Motilal Oswal maintains its ‘Buy’ call on this NBFC with a target price of Rs 140. This indicates an upside of 25.7%. The stock price rose by 7.9% during the past month. In Q2Y23, the company’s net profit grew by 10.4% YoY to Rs 408.4 crore (17% higher than the brokerage’s estimate), while revenue increased 10.3% YoY to Rs 1,714.1 crore. Net interest income improved 9% YoY to Rs 1,080 crore, 6% higher than the brokerage’s estimates.

Analysts Abhijit Tibrewal, Nitin Aggarwal and Parth Desai ask the question: Should the NBFC now change from gold loan growth and margin compression to healthier yields and diversification in the loan book. “We feel Manappuram Finance should tread carefully in the non-gold segments as it is yet to exhibit a clear ‘right to win’ in these segments and strong non-gold AUM growth is also fraught with risks,” they said. 

The analysts raised their estimates and model profit CAGR of 13% over FY22-24 by factoring in higher margins in the gold loan segment and moderation in credit costs in the MFI business.

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

(You can find all analyst picks here)

Where do investors get their investing cues from? In the Indian market, investors track Superstar investors for investment ideas, and are quick to identify the buying and selling patterns of these big bulls. 

Earlier, we looked at the stocks bought by Superstars in Q2FY23. Here, we focus on their key sells. We take a look at recent stake sales by ace investors like Rakesh Jhunjhunwala (now managed by RARE Enterprises), Ashish Kacholia, Sunil Singhania and Dolly Khanna in Q2FY23.

Rakesh Jhunjhunwala’s portfolio cuts stake below 1% in three companies

Rakesh Jhunjhunwala's portfolio, which is currently managed by Rare Enterprises, sold  stakes in 14 companies in Q2FY23. The portfolio’s two biggest sells include Bilcare and Autoline Industries, where it cut its stakes by over 7.5% and 3.5% respectively. 

Bilcare is a small-cap healthcare supplies company, for which the corporate insolvency resolution process began on November 11. The stock fell by 36.3% from last Friday (November 11) till Wednesday. Autoline Industries is a small-cap auto parts & equipment company that rose 63.6% in Q2, and its profit in the same period jumped nearly 9X YoY. Yet RJ’s portfolio pared its stake below 1% in the company. It also took its stake in IndiaBulls Housing Finance below 1% from 1.2%.

The big bull’s portfolio reduced its holdings in Jubilant Ingrevia and Federal Bank by 1.6% and 1% to bring down its stakes to 3.2% and 2.6% respectively. 

The portfolio cut  0.5% in Canara Bank, D B Realty and Rallis India each, reducing these holdings to 1.5%, 1.5% and 9.4% respectively. It also cut 0.3% from its stake in Anant Raj to 3.1%.

The Rare Enterprises managed portfolio also reduced its stake in Karur Vysya Bank, Edelweiss Financial Services and Star Health & Allied Insurance by 0.1% each to take the holdings to 4.4%, 1.5% and 17.4% respectively. It also sold minor stakes in Nazara Technologies and Crisil. 

Sunil Singhania sells 1% stake in industrial machinery company The Anup Engineering

In Q2FY23, Sunil Singhania’s Abakkus Fund pared its stake in financial services company CMS Info Systems, defence company Paras Defence and Space Technologies, plastic products and electric appliances manufacturer Surya Roshni, movies and entertainment company Saregama India, and packaging company Polyplex Corp. Its stake is now below 1% in these companies.

Abakkus sold a 1.5% stake in Mastek during the quarter and now holds 2.8% in the company. Mastek’s share price fell by 18.3% to Rs 1,741.3 on September 30, 2022, from Rs 2,130 on July 1, 2022. The fund also sold a 1% stake in The Anup Engineering and now holds only 4.8%. In Q2FY23, Anup Engineering’s profit fell by 17.9% YoY to Rs 12.9 crore. 

Apart from these stocks, the fund also reduced stakes in Route Mobile (now holds 2.7%) and IIFL Securities (now holds 3.2%)

Ashish Kacholia takes his holdings below 1% in several small-cap companies

Ashish Kacholia sold more than 2.4% in Vishnu Chemicals during Q2FY23 and now holds below 1% in the speciality chemicals manufacturer. He also sold most of his holdings in Kwality Pharmaceuticals, VRL Logistics, Mold-Tek Packaging and Mastek. He now holds below 1% in all these companies.

The marquee investor cut his stake in IT consulting and software company Genesys International Corp by 0.3% (now holds 1.7%), in apparels and accessories manufacturer Safari Industries (India) by 0.2% (now holds 2.6%), and in internet and catalogue retailer Creative Newtech by 0.1% (now holds 2.7%).

Kacholia also sold stakes in Vaibhav Global and NIIT; he now holds 1.2% and 2.2% respectively in the companies.

Dolly Khanna goes on a selling spree in Q2FY23

Dolly Khanna sold stakes in 16 companies in Q2FY23, which mostly included agrochemicals, cement, fertilisers and textile companies. Her biggest sell was Chennai Petroleum Corp, where she reduced her stake by 0.7% to 2.6%. The ace investor also cut 0.5% from her holdings in Pondy Oxides & Chemicals and Rama Phosphates to 3.4% and 1.7% respectively.

Khanna took her holdings below 1% in Suryoday Small Finance Bank, RSWM, New Delhi Television and Goa Carbons in Q2FY23.

She pared her stake in KCP by 0.4% to 3% and reduced her stakes in NCL Industries, Sharda Cropchem, Tinna Rubber and Infrastructure and Aries Agro by 0.2% each to 1.3%, 1%, 1.7% and 1.1% respectively. The ace investor also reduced her holdings in Polyplex Corp and Mangalore Chemicals & Fertilisers by 0.1% and sold minor stakes in Manali Petrochemicals and Nitin Spinners. 

Vijay Kedia cuts stake in Lykis, a micro-cap company

Vijay Kediasold a 6.6% stake in the micro-cap company Lykis in Q2FY23; he now holds 2.7% in the company. The personal products company’s stock price was Rs 27 on July 1, 2022, which then surged to Rs 55.1 on September 6, 2022. After a sharp rise, the stock price then fell to Rs 41.45 by the end of the September quarter. 

Kedia sold a 0.3% stake in Ramco Systems during Q2FY23, bringing down his holding to 1.6%. The company’s profit has consistently reported losses for six consecutive quarters. He also sold a minor stake in Tejas Networks and now holds 2.6%.

Porinju V Veliyath takes his stake below 1% in Cupid

Porinju V Veliyath reduced his stakes in a total of five companies. His biggest sell was in TCM, an agrochemicals company, where he pared his stake by 2.9% to 1.3%. He also took his stake below 1% in Cupid, a personal products manufacturer. 

The investor reduced his stakes in RPSG Ventures and Kaya by 0.2% each to 1.6% and 1.4% respectively. He also decreased his holding in Orient Bell by 0.1% to 4.8%.

1. United Spirits: This alcoholic beverage company’s share price has risen nearly 10% since it announced its Q2FY23 results. United Spirits comfortably beat Trendlyne’s forecaster estimates in both revenue and net profit. According to Trendlyne’s comparison tool, United Spirits outperformed its peers United Breweries, Radico Khaitan and Globus Spirits in YoY revenue and net profit growth in Q2.  

Despite a recent run-up in the share price, United Spirits is in the PE Buy zone and features in a screener for stocks in the PE Buy Zone with reasonable durability and rising momentum scores. 

Strong volume growth of 13% YoY in its premium and above segment drove revenue growth in Q2. However, volumes from the popular segment remained flat YoY. This is in line with the management’s guidance as it is changing the product mix to high-margin premium & above segment, which contributed nearly 80% of the total revenue in Q2. 

The management aims to derive 90% of its revenue from the premium segment in the near term. As part of this premiumisation drive, the company sold 32 popular brands amounting to Rs 372 crore in Q2FY23. These brands accounted for about 14% of the sales in H1FY23–meaning sales from this segment could see a YoY decline in H2FY23. However, with new premium product launches, margins are expected to improve. In Q2, gross margins fell 560 bps YoY to 39.5% due to double-digit inflation in raw material prices. The management said input cost inflation will continue in Q3FY23 as well due to the rise in glass manufacturing and Extra Neutral Alcohol (ENA) costs. 

2. Hindalco Industries: This aluminium manufacturer gained nearly 5% since announcing its Q2FY23 results on November 11. This rise in its stock price comes despite a 35.5% YoY drop in its net profit. It also missed Trendlyne’s Forecaster profit estimates by 14.4%. The street’s optimism around the company comes on the back of its aluminium production reaching record highs amid high input costs.

The business outlook for the firm looks healthy as the London Metal Exchange (LME) aluminium prices are expected to rise and demand for aluminium remains strong. This confidence in the company’s prospects is echoed by brokerages as well. Over the past month, it witnessed four broker target price upgrades and one broker recommendation upgrade.

The management expects the firm’s margins to expand in the coming quarters on better coal availability, as its captive coal mines start contributing effectively. This will bring down energy costs in the medium-to-long term. According to ICICI Securities, capacity expansion at Utkal Alumina will lead to a further fall in input costs for the company.

The management says it expects a robust demand environment in India, but a slowdown in the US may be a concern. ICICI Securities sees the Indian market driving growth for the company in the near-to-medium term. The company has allocated a capex of Rs 2,500 crore for the rest of FY23, which it plans to finance with its cash flows and not take on any debt. 

3. Tata Motors: The commercial vehicles manufacturer fell almost 5% following its Q2FY23 results on November 9. The company reported a loss of Rs 944.6 crore and 29.7% YoY rise in revenue to Rs 79,661.4 crore. It was backed by growth in revenues from Jaguar Land Rover, commercial vehicles and passenger vehicles segments. 

Shailesh Chandra, Managing Director, said the company remains vigilant about the evolving demand and supply situation and will stay active to take swift actions while focusing on further improving profitability. 

The company beat Trednlyne’s Forecaster estimates for revenue by 2.4% while net profit missed the forecaster estimates. Prabhudas Lilladher maintains ‘Buy’ rating on the company with a target price of Rs 520. The brokerage believes that the company’s likely market share gains in the PV segment led by a revamped portfolio, customer preference for SUVs and rising EV penetration along with the revival in Jaguar Land Rover and strong order book will benefit and drive free cash flow generation. 

Bringing in more business, the company’s commercial vehicles segment won an order for 1,000 buses from Haryana Roadways. The 52-seater fully built BS6 diesel buses will be supplied to the state in a phased manner. The stock also features on a screener of top Indian exporters in listed companies.

Meanwhile, Jaguar Land Rover’s Chief Executive Officer Thierry Bolloré resigned from the position due to personal reasons on November 17. 

4. Trent: This retailing company witnessed robust sales during the recently ended quarter. Although revenue was up 66% YoY to Rs 1,929 crore, its rise in profit was marginal at 0.5% YoY (Rs 93 crore). While its margins declined due to inflationary pressures, Trent’s revenue growth was backed by festive demand and in-store sales. It outperformed the industry. 

Noel Tata, Chairman of Trent, said the company’s fashion concepts have displayed encouraging growth momentum in Q2FY23. He added that Trent continues to expand its reach with vigour, and reinforce lifestyle offerings across concepts, categories and channels.

Brokerages like ICICI Direct, Axis Direct and Motilal Oswal are optimistic and give it a ‘Buy’ call on the back of the retailer’s robust performance and growth prospects. They expect Trent to add over 200 stores across various brands in the next two-three years. They believe that brands like Zudio and Star will drive growth in the coming years. 

While comparing Trent with its peer Aditya Birla Fashion and Retail using Trendlyne’s Stock Comparison tool, it outperformed in 30 out of 42 parameters, including revenue and net profit QoQ growth. 

The stock features in a screener for companies with strong annual EPS growth.

Trendlyne’s Forecaster estimates Trent’s revenue to grow 42.7% and EPS, 76.3% in FY23. 

5. Aster DM Healthcare: This healthcare facilities provider's share price fell over 18% in three trading sessions after it announced Q2FY23 results. The company's net profit fell 57% YoY and missed Trendlyne's Forecaster estimates by a significant margin. Net profit fell despite a 12.5% rise in revenue, mainly due to a sharp fall in the Gulf Cooperation Council (GCC) clinics and losses incurred by new hospitals in GCC. As a result, this company comes up in a screener of companies that posted a decline in quarterly net profit with a falling profit margin (YoY). 

Aster DM derives nearly 75% of its revenue from the GCC. The company has an established business in the GCC but has been expanding in India through an asset-light model. Revenue from hospitals in India rose 18.7% YoY in Q2, while GCC hospitals' revenue increased 8.2%. In addition, Indian hospitals boast higher operating profit margins or OPM (18.3%) than GCC hospitals (13.9%). 

To grab this opportunity in India, Aster DM has allocated a significant portion of Rs 600 crore capex planned for FY23 to increase bed counts in India. In order to strengthen its presence in South India, the hospital company inked a deal with Tirupathi-based Narayanadri Hospital & Research Institution in October to manage its hospital operations. This is in line with management's guidance of adding over 500 beds in India over FY23.

Another company expanding its footprint in South India is Krishna Institute of Medical Sciences (KIMS). According to Trendlyne’s comparison tool, KIMS beats Aster DM in YoY revenue and net profit growth in Q2. However, Aster DM hopes to leverage its multiple growth levers such as its pharmacy business and diagnostics business in GCC and India to drive top line growth. 

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

As the results season comes to an end, we take a look at stocks that declined sharply from their year highs, but recovered in the past month post results. The screener identifies stocks that have a distance of more than 30% from their 52-week highs, but saw recent monthly gains. 

Oil India rose by 10% over the past month after falling for four months, while its industry,  Exploration & Production, grew by 11.5% in the same period. HDFC Securities credits increase in crude oil and domestic gas price realisations for the growth. The company beat the brokerage’s estimates for revenue, EBITDA and net profit, owing to lower-than-expected statutory levies and higher other income. The stock is currently trading at a distance of 33% from its 52-week high.

Larsen & Toubro Infotech rose 9.1% over the past month after briefly falling for a month, outperforming the IT Consulting & Software industry by 1.8 percentage points. According to ICICI Securities, the company’s strong performance in the market is backed by a large and higher-tenure deal pipeline, and strong outlook for the core vertical of banking, financial services and insurance. The stock is trading at a distance of 32.9% below its 52-week high.

Biocon rose 8.7% over the past month after falling for five consecutive months. It outperformed the Biotechnology industry by 90 bps. According to Axis Securities, the company has seen its market share for drugs like glargine and trastuzumab grow in the US market. The stock is trading at a distance of 30.8% below its 52-week high.

Coforge rose 6.3% over the past month after falling for five consecutive months. It underperformed the IT Consulting & Software industry by 4.6 percentage points. Motilal Oswal believes that the company is well-positioned to achieve its strong revenue growth guidance in FY23 with the help of strong order intake, recovery in the travel industry, continued growth momentum, and new client additions. The stock is trading at a distance of 35.2% below its 52-week high.

October of 2022 saw the benchmark indices Nifty 50 rise 5.37% and Nifty Bank 6.93%. Both of these indices are now trading close to their all-time highs. With such massive gains, it was not surprising that mutual fund managers chose to add up on banking stocks with potential returns. Some other sectors that saw buying were logistics, auto ancillary and speciality chemicals.

Samvardhana Motherson - Gets boost from revival in the auto sector 

Samvardhana Motherson, formerly known as Motherson Sumi, is an auto component manufacturer which supplies the global PV (passenger vehicle) industry with wiring harnesses, vision systems (mirrors) and plastic body parts.

Q2FY23 results were encouraging for the company with it registering its highest-ever quarterly revenues at Rs 18,354.8 crore. Considering the expanding market for EV components, the company has also taken steps to expand its production capacity. 

In September 2022, it acquired 100% stakes in Japanese company Ichikoh Industries at an enterprise value of Japanese Yen (JPY) 5.2 billion. The transaction includes Ichikoh’s mirror business (development and manufacturing of automotive mirrors and associated products) in Japan and China, catering largely to Japanese original equipment manufacturers (OEMs)

Fund managers who bought shares of Samvardhana Motherson

Fund managers who added shares of Samvardhana Motherson to their portfolios include Hiten Shah forKotak Equity Arbitrage Fund Growth, Sailesh Raj Bhan and Kinjal Desai for Nippon India Multi Cap Fund - Growth, Kinjal Desai and Ashutosh Bhargava for Nippon India Tax Saver (ELSS) Fund - Growth, and Sailesh Raj Bhan and Kinjal Desai for Nippon India Large Cap Fund - Growth.

Zee Entertainment - Growing market share and impending merger pique interest

Zee Entertainment is one of the largest listed media companies in India. It owns and operates 49 TV channels across 11 languages and also an OTT app Zee5.

In Q2FY23, the TV network’s viewership share was 16.4%, improving from 16.1% in Q1FY23, with a revised content strategy driving viewership in Hindi and Tamil. It also continues to gain viewership in Marathi among regional channels. 

Future growth triggers include higher adoption of OTT subscriptions under Zee5 and unlocking synergies with the proposed merger with Sony, for which the company has received conditional approval from the CCI. It expects the merger to be completed by Q4FY23.

Fund managers who bought shares of Zee Entertainment

Additional shares of Zee Entertainment were added by Sankaran Naren and Dharmesh Kakkad to ICICI Prudential Value Discovery Fund Growth, Mahesh Patil toAditya Birla Sun Life Frontline Equity Fund Growth, Sankaran Naren and Sharmila D’mello toICICI Prudential Focused Equity Fund Growth and Neelesh Surana and Ankit Jain to Mirae Asset Emerging Bluechip Fund Growth.

BHEL - Strength in order visibility over the next few years

BHEL, a public sector entity, is India’s largest engineering company and dominates the supply of equipment for power plants in India. The company’s products include gas turbines, generators, thermal sets, diesel shunters and other power plant equipment.

Its order inflow in Q2FY23 was robust at Rs 12,000 crore, with the announcement of the 2x660 NTPC Talcher win. Management expects revival of the thermal order pipeline with ~5 GW of expected annual order for the next five years. Order intake for the industrial segment was up 78% YoY to Rs 22,800 crore in Q2FY23, which included supply of locomotives and propulsion equipment in the transportation segment and transmission equipment among others.

Fund managers who bought shares of BHEL

Fund managers who added shares of BHEL to their schemes include Vinay Sharma and Kinjal Desai for Nippon India Focused Equity Fund - Growth, Krishan Kumar Daga and Arun Agarwal for HDFC Arbitrage Fund Wholesale Plan Growth, Atul Bhole and Laukik Bagwe for DSP Dynamic Asset Allocation Fund Regular Growth, and Venugopla Manghat and Praveen Ayathan for L&T Arbitrage Opportunities Fund Regular Growth.

IndusInd Bank - Improving performance this quarter aided by continual expansion

IndusInd Bank is part of the Hinduja Group. Its consumer finance division provides loans for vehicles, property and so on, while its corporate banking division offers a wide range of products to small and medium enterprises (SMEs) and large firms.

The bank posted a good set of numbers in Q2FY23. Its quarterly revenues were the highest ever at Rs 10,719.2 crore and net profits rose to Rs 1805.2 crore, a YoY increase of 57.4%. Gross NPAs also reduced significantly to 2.11% in Q2FY23.

IndusInd Bank continues to invest in physical and digital resources and has added 55 branches, 2,700 employees in banking and 3,650 employees in vehicles and microfinance and distribution this year. 

Fund managers who bought shares of IndusInd Bank

Addition of shares of IndusInd Bank was done by Hiten Shah for Kotak Equity Arbitrage Fund Growth, Priya Ranjan and Rahul Baijal for HDFC Top 100 Fund Growth, Priya Ranjan and Anil Bamnboli for HDFC Balanced Advantage Fund Growth, and Atul Penkar and Dhaval Gala for Aditya Birla Sun Life Tax Relief.

Canara Bank - Part of the PSU banks revival and growth story

Canara Bank is the third largest public sector bank in India. Among PSU banks, it has had a stellar run on the stock exchanges with its price nearly doubling in the past five months from the lows it made in June 2022.

Like many other PSU banks, Canara Bank also saw a significant improvement in its business over the past few quarters. In the latest quarter, Q2FY23, its revenues grew to an all-time quarterly high of Rs 27,358 crore, a YoY increase of 14.5%. Its net profit was also the highest in the past 10 quarters at Rs 2,705.6 crore, a YoY increase of 151.8%. Meanwhile, gross NPAs fell to 2.19% in Q2FY23 from 3.21% in Q2FY22.

Fund managers who bought shares of Canara Bank

Buying interest for Canara Bank came from Aniruddha Naha and Vivek Sharma forPGIM India Midcap Opportunities Fund Regular Growth, Sailesh Raj Bhan and Kinjal Desai Nippon India Multi Cap Fund - Growth, Mitul Kalawadia and Anand SharmaICICI Prudential PSU Equity Fund Regular Growth, and Vinay Sharma and Kinjal Desai Nippon India Banking & Financial Services Fund Growth.

RBL Bank - Bouncing back after a few lackluster quarters

RBL Bank, a private sector bank with a nationwide network of 435 branches, offers various services, including corporate and institutional banking, commercial banking, retail banking, agricultural development banking and financial market access.

It reported a 5.5x YoY jump in net profit to Rs 200 crore in Q2FY23, aided by a 63% decline in provisions. There was a pick-up in loan growth, up 12% YoY and 4% QoQ to Rs 62,900 crore. Within the retail lending segment, housing loans improved 35% QoQ and the MFI portfolio rose  22%. Credit cards grew at a steady pace of 4% QoQ. The share of credit cards stands at 23% of total loans.

RBL Bank has plans to launch its loan products for two-wheelers, used cars and Gold in Q3FY23. Overall, the bank is targeting a loan growth of 15% in FY23.

Fund managers who bought shares of RBL Bank

Fund managers who added shares of RBL include Kinjal Desai and Ashutosh Bhargava toNippon India Small Cap Fund - Growth, Kinjal Desai and Anand Gupta to Nippon India Arbitrage Fund Growth, Sonam Udasi and Abhinav Sharma to Tata Flexi Cap Fund Regular Growth, and Sanjeev Sharma and Vasav Sahgal to Quant Small Cap Fund Growth.

Delhivery - Path to profitability on the horizon

Delhivery, the largest fully-integrated logistics player in India by revenues, provides logistics services, including express parcel, e-commerce delivery and heavy goods delivery. Its network includes 122 gateways, 21 automated sort centres and 93 fulfilment centres.

In Q2FY23, its revenue from services was Rs 1,796 crore, up 22% YoY from Rs 1,474 in Q2FY22. Loss after tax in the same period narrowed down to Rs 254 crore from Rs 643 crore in Q2FY22. Overall, the company’s adjusted EBITDA loss reduced to Rs 125 crore in Q2FY23 on a sequential basis from Rs 217 crore in Q1FY23. As chances of profitability improve, there is growing interest in the stock from domestic institutions.

Fund managers who bought shares of Delhivery

Shares of Delhivery were added to respective portfolios by R Srinivasan and Mohit Jain for SBI Flexicap Fund Regular Growth, Priya Ranjan and Roshi Jain for HDFC Flexi Cap Fund Growth as well asHDFC Focused 30 Fund Growth, and Harish Bihani and Sharmila D’mello for ICICI Prudential Transportation and Logistics Fund Regular Growth.

Biocon - Acquisitions and international deals could improve company’s health

Biocon is a biopharmaceutical company. It develops therapy for chronic diseases such as autoimmune disease, diabetes and cancer. It has developed and introduced novel biologics, biosimilars, differentiated small molecules and affordable recombinant human insulin and analogues into the market. 

Biocon via its subsidiary, Biocon Biologics, will acquire the global biosimilars portfolio of Viatris. It expects the deal with Viatris to close in the second half of the current financial year. Through this deal, Biocon will gain Viatris’ global biosimilars business, whose revenues are estimated to be $1 billion next year, along with its portfolio of in-licensed biosimilar assets. This is an important deal for Biocon because it gives the Bengaluru-based company access to Semglee, an insulin brand.

The company also announced signing a strategic out-licensing agreement with Japanese pharmaceutical company Yoshindo Inc. for commercialising two of its pipeline biosimilar assets in the Japanese market. The company is in talks with Japanese regulators for data on two clinical assets and looks to commercialise the same across different markets.

Fund managers who bought shares of Biocon

Buying interest in Biocon was seen from Hiten Shah for Kotak Equity Arbitrage Fund Growth, Neelesh Surana for Mirae Asset Tax Saver Fund -Regular Plan-Growth, Sailesh Jain for Tata Arbitrage Fund Regular Growth, and Neeraj Kumar and Arun R for SBI Arbitrage Opportunities Fund Regular Growth.

Prestige Estates - Expanding footprint across the country

Prestige Estates is India’s largest developer in terms of booking value for FY22. Most of their projects are executed in Bengaluru and Hyderabad. The company has entered into Mumbai and NCR as well and is targeting aggressive growth in these geographies.

Prestige Estates has reported pre-sales in value terms at Rs 3,511 crore in Q2FY23, up 66% YoY. In volume terms, bookings increased to 4.55 million square feet (msf). Collections rose 68% YoY to Rs 2,603 crore in Q2FY23 and it launched five projects spanning 7.39 msf this quarter.

Fund managers who bought shares of Prestige Estates

Additions to respective schemes were made by Neelesh Surana and Ankit Jain to Mirae Asset Emerging Bluechip Fund Growth, Ankit Jain to Mirae Asset Midcap Fund Regular Growth, Neelesh Surana to Mirae Asset Tax Saver Fund -Regular Plan-Growth and Roshi Jain and Priya Ranjan toHDFC TaxSaver Growth.

Anupam Rasayan - Chemical company benefiting from China+1 factor

Anupam Rasayan is engaged in custom synthesis and manufacture of life science-related speciality chemicals in India. 

In Q2FY23, its operating revenue was Rs 31.07 crore, a YoY growth of 25%, while EBITDA was Rs 89.8 crore, a YoY growth of 29%. It also raised around Rs 500 crore through Qualified Institutional Placement (QIP) for growth capex in Q2FY23. Proceeds will be utilised for building multipurpose plants in existing units at Sachin and Jhagadia. A cash balance of Rs 192.1 crore in H1FY23 would be sufficient for the planned capex.

Fund managers who bought shares of Anupam Rasayan

Fund managers who added shares of Anupam Rasayan include Sanjeev Sharma and Vasav Sahgalfor Quant Active Fund Growth, Mahesh Patil and Dhaval Shah for Aditya Birla Sun Life Multi-Cap Fund Regular Growth, Satyabrata Mohanty for Aditya Birla Sun Life Equity Advantage Fund Growth, and Sandeep Manam and Akhil Kalluri for Franklin India Smaller Companies Fund Growth.