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Trendlyne Marketwatch
Trendlyne Marketwatch
08 Dec 2022, 03:45PM
Market closes higher, BOB Capital Markets keeps ‘Buy’ rating on Greenpanel Industries

Trendlyne Analysis

Indian indices closed in the green after dipping into losses and gains on a volatile day of trade. European stocks traded higher than Wednesday’s close amid mixed global cues. Most major Asian indices closed mixed, in line with the US indices, which also closed mixed on Wednesday. US stocks were lost for direction as investors continue to assess various economic data and commentary from the US Fed to project the pace of monetary policy tightening at the Fed’s next meeting.

The S&P 500 extended its losses for a fifth straight session and closed 0.2% lower. The tech-heavy Nasdaq 100 fell 0.5% while the Dow Jones managed to close flat. Crude oil prices have fallen over 11% in the last four sessions and closed at its lowest level in 2022 on Wednesday. However, Brent crude oil futures traded higher today, but still near its 2022 low as slowing global economic growth hurt crude oil demand.

Nifty Smallcap 100 and Nifty Midcap 100 closed in the green, following the benchmark index. Nifty Metal and Nifty Media closed higher than Wednesday’s level. Nifty IT closed lower, following the Nasdaq 100, which closed in the red on Wednesday.

Nifty 50closed at 18,609.35 (48.9, 0.3%), BSE Sensexclosed at 62,570.68 (160, 0.3%) while the broader Nifty 500closed at 15,911.10 (49.1, 0.3%)

Market breadth is in the green. Of the 1,937 stocks traded today, 998 showed gains, and 871 showed losses.

  • Relative strength index(RSI) indicates that stocks like Aditya Birla Capital, Bank of India, Power Finance Corpand Rashtriya Chemicals & Fertilizersare in the overbought zone.

  • Union Bank of India, Rail Vikas Nigam and Rashtriya Chemicals & Fertilizers rise more than 30% over the past month.

  • Metal stocks like Hindalco Industries, JSW Steel, Tata Steel and Steel Authority of India are rising in trade. All the constituents of the broader sectoral index BSE Metal are trading in the green.

  • Jindal Steel & Power acquires Monnet Power's under-construction power plant for Rs 410 crore, according to reports.

  • BOB Capital Markets maintains its ‘Buy’ rating on Greenpanel Industries with a target price of Rs 595, implying an upside of 54%. The brokerage is positive on the company’s prospects given its market share leadership in the medium-density fibreboard (MDF) segment, improving balance sheet and rise in MDF exports. It expects the company’s revenue to grow at a CAGR of 12.5% over FY22-24.

  • Naresh Jalan, Managing Director of Ramkrishna Forgings, expects the company’s exports to grow by 20% in FY23. He adds that orders from European OEMs are strong and expects sales from the region to double by FY24.

  • Bank of India rises more than 5% in trade today after Credit Suisse upgrades the stock to ‘outperform’. The brokerage sees the bank’s profit increase and capital position remain strong. It shows up in a screener of stocks that gained more than 20% in the past month. The stock is currently trading above its historic PE valuation and is in the ‘PE Sell Zone’.

  • Talbros Automotive Components is surging as it bags a multi-year order worth Rs 60 crore from a leading passenger vehicle original equipment manufacturer. The order is in the heat shielding business and is to be executed over the next five years. The company has added orders worth approximately Rs 880 crore in FY23.

  • HDFC Bank rises as 67.3 lakh shares (0.12% equity) amounting to Rs 1,084 crore change hands, according to reports.

  • PSU Bank stocks like Bank of India, Bank of Baroda, Central Bank of Indiaand Punjab & Sind Bank are rising in trade. The broader sectoral index Nifty PSU Bankis also trading in the green.

  • Sun Pharma, Kotak Mahindra Bank and LTIMindtree trade below their second support or S2 level as the market trades flat.

  • Abhijit Roy, the Managing Director and CEO of Berger Paints, expects an improvement in the gross margin in the upcoming quarters. He says that the effect of the fall in crude oil prices will be visible from Q4FY23.

  • JSW Steel’s combined crude steel production in November rises 16% YoY to 16.9 lakh tonnes, led by a 19% YoY rise in production of flat rolled products. The company features in a screener with stocks seeing a rise in return on capital employed (RoCE) for the past two years.

  • Sun Pharmaceuticals is falling after the US FDA issued an ‘import alert’ on its Halol facility in Gujarat. The FDA has excluded 14 products from its list. The alert means that any shipment from the Halol facility will not be allowed into the US markets until it complies with cGMP standards. The company says it will work towards resolving the issues.

  • Macrotech Developers fixes a floor price for its QIP (qualified institutional placement) of equity shares by promoters and promoter group. QIP is a way of raising capital without having to submit legal documents to market regulators. The shares will be offered at Rs 1,022.75 per share.

  • India's FII inflows improve to $902 million in November. The financial services sector saw the largest inflow of $337 million.

  • Va Tech Wabag's board approves the appointment of Pankaj Malhan as Deputy Managing Director and Group Chief Executive Officer of the company with effect from Wednesday.

  • Dharmaj Crop Guard’s shares list at a 12.3% premium to the issue price of Rs 237 on its debut on the bourses. The 251.15 crore IPO was subscribed for 35.4X the total shares on offer.

  • Promoters of Inox Wind infuse Rs 623 crore to repay Gujarat Fluorochemicals’ advances. The amount was raised by way of issuance of preferential shares on a private placement basis. Kailash Tarachandani, the CEO, says, "The infusion will help the company pare down its consolidated interest-bearing liabilities substantially and help improve the profitability." It shows up in a screener of stocks with decreasing promoter pledges.

  • Sunil Singhania's Abakkus Fund buys a 2.1% stake in Stylam Industries for approx Rs 39.5 crore in a bulk deal on Wednesday.

  • Nippon India Mutual Fund buys a 2.7% stake (2.15 lakh shares) in Elantas Beck India for Rs 88.3 crore on Wednesday. Meanwhile, Algoquant Fintech buys a 0.6% stake (5 lakh shares) in VIP Clothing for Rs 2.3 crore. India 2020 Fund sells a 2.83% stake (4.8 lakh shares) in Stylam Industries for Rs 54.1 crore in another bulk deal.

Riding High:

Largecap and midcap gainers today include Bank of India (100.20, 7.92%), Bank of Baroda (188.25, 6.66%) and Indian Overseas Bank (25.60, 6.44%).

Downers:

Largecap and midcap losers today include Sun Pharmaceutical Industries Ltd. (980.80, -3.63%), LTIMindtree Ltd (4,558.80, -2.75%) and Indian Railway Finance Corporation Ltd. (32.20, -2.57%).

Movers and Shakers

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

Top high volume gainers on BSE included Central Bank of India (31.55, 12.08%), KEC International Ltd. (479.70, 10.43%) and Godfrey Phillips India Ltd. (1,912.20, 6.85%).

Top high volume losers on BSE were Sun Pharmaceutical Industries Ltd. (980.80, -3.63%), Aptus Value Housing Finance India Ltd. (300.90, -2.32%) and CreditAccess Grameen Ltd. (899.95, -1.06%).

Sundaram Clayton Ltd. (5,170.00, 0.95%) was trading at 13.4 times of weekly average. KNR Constructions Ltd. (270.55, 4.24%) and Kotak Mahindra Bank Ltd. (1,897.00, -0.76%) were trading with volumes 9.9 and 7.0 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

26 stocks took off, crossing 52-week highs,

Stocks touching their year highs included - Amara Raja Batteries Ltd. (663.60, 2.38%), Axis Bank Ltd. (939.35, 2.70%) and Bank of Baroda (188.25, 6.66%).

14 stocks climbed above their 200 day SMA including Coromandel International Ltd. (966.25, 5.24%) and Network 18 Media & Investments Ltd. (74.25, 4.28%). 11 stocks slipped below their 200 SMA including Sobha Ltd. (612.60, -3.44%) and Power Grid Corporation of India Ltd. (217.80, -1.47%).

 
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The Baseline
07 Dec 2022
Stock Screener: Stocks with high forecaster estimates for capex, revenue and profit
By Abdullah Shah

Continuing with the investments theme this week, we take a look at companies which will incur a big capex in the ongoing fiscal year. This screener reflects companies which may see over 20% rise in their capex, revenue and net profit in FY23, according to Trendlyne’s forecaster. It reflects 50 stocks from Nifty 500 and 4 stocks from the Nifty 50 index. 

The screener features stocks from industries like cars & utility vehicles, heavy electrical equipment, non-alcoholic beverages, other apparels & accessories, and travel support services. Major stocks listed in the screener are IRCTC, Page Industries, Adani Ports, Asian Paints, Varun Beverages and Maruti Suzuki India.

IRCTC may see the highest capex rise of over 3X YoY in FY23. Analysts also expect the company’s annual revenue to jump by over 75% YoY in FY23 . The company’s Chief Financial Officer (CFO) expects the capex outlay to be Rs 250 crore for the new office and Rs 100 crore to upgrade the IT services.

The forecaster sees Asian Paints capex rising by over 94% YoY in FY23. The company also announced a new capex plan of Rs 6,750 crore post its Q2FY23 results. It seeks to expand its overall paints capacity by 30% in the next three years.

Maruti Suzuki India is likely to see its capex nearly double in FY23. Reports say the company will be spending more than Rs 7,000 crore during FY23, which is significantly more than the Rs 5,000-crore capex guidance given by it in April. 

 
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The Baseline
07 Dec 2022
Portfolio X-Ray: An analysis of Sunil Singhania’s Abakkus Fund
By Abhiraj Panchal

In many ways, Sunil Singhania, the founder of Abakkus Asset Manager LLP, is an old-school investor.  You are not going to find a loss-making startup with crazy valuations in his portfolio. He is not a PayTM or Zomato kind of guy. 

Rather, Singhania, over his 28-year long career tracking equity markets, built a reputation for finding diamonds in the rough - smaller companies with strong financials, who were just starting to see strong growth momentum. Here we take a closer look at his portfolio, to see if that reputation of picking winners still holds up in his recent bets. 

Singhania founded Abakkus in 2018, and it has grown to $1.4 billion since inception. Before Abakkus, he worked at Reliance Capital as Chief Investment Officer and global head for equities, managing over $10 billion in investments. During his 22 years at Reliance Capital he significantly increased the size of the Reliance Growth Fund. 

Singhania was also the chairman of the investment committee at CFA Institute, overseeing over $400 million worth of investments in an honorary capacity. 

As the head of the Abakkus Fund, Singhania has invested primarily in small and micro-caps, and a few mid-cap companies. The Fund’s net worth during Q2FY23 was Rs 2,079.2 crore, and it publicly owns a stake in 24 companies.

Singhania’s track record of choosing good companies still looks quite strong. Hindware Home Innovation, HIL, Siyaram Silk Mills and Mastek are among the oldest stocks in the portfolio. The best long-term performing companies in the Abakkus portfolio are Mastek and AGI Greenpac, which have increased by 304.7% and 285% respectively since Q4FY19. The small-cap investor cut a 1.5% stake in Mastek in Q2FY23 and now holds 2.8%. However, its price fell 47.6% during H1FY22. He also reduced stakes in AGI Greenpac to 1.9% in Q2FY23 from 3% in Q3FY21.  

Other high-performing long-term companies in the portfolio are Jindal Stainless (Hisar) (bought in Q4FY19), Hindware Home Innovation and IIFL Securities (bought in Q3FY20), and HIL and ADF Foods (bought in Q1FY21). Singhania purchased a stake in Polyplex Corp in Q4FY19 but cut it to below 1% in Q2FY23. During this period, the packaging company’s price grew by 232.7%

Singhania maintains a well-diversified portfolio

While Abakkus is a well-diversified portfolio, Singhania maintains 19.7% of the portfolio in the metals and minings sector, aggregating to Rs 363.7 crore, and 19.3% in the software and services sector (Rs 357.2 crore). While cement and construction amounts to 11.4%, consumer durables has 10.9%, and textiles, apparel and accessories, 7.9%. The least invested in sectors are diversified consumer services, FMCG, retailing, and food, beverages and tobacco, with less than 2% each.

During Q2FY23, the marquee investor increased his stake in eight companies and reduced it in nine. He added a 1.2% stake of pharma company Jubilant Pharmova to his portfolio. He also bought an additional 0.4% in Stylam Industries, 0.1% each in Sarda Energy & Minerals, Hindware Home Innovation and HIL. He cut a 1.5% stake in Mastek, a 1% stake in The Anup Engineering and a 0.2% stake in Route Mobile. Singhania also cut stakes in Polyplex Corp, Saregama India, Surya Roshni, Paras Defence and Space Technologies and CMS Info Systems to below 1%.

23 out of 24 stocks report consolidated profits in Q2FY23

Sunil Singhania’s LinkedIn profile mentions his strength as “a balance sheet-focused investor with a keen eye on numbers”. All companies in the portfolio have reported consolidated profits in Q2FY23, except HIL, which reported a loss of Rs 6.8 crore (against a profit of Rs 26.1 crore in Q2FY22), despite just a marginal fall in revenue of 0.3%.  

During Q2FY23, Ethos reported a 410.5% YoY rise in profit to Rs 13.6 crore, while its revenue grew 32.3% YoY. Route Mobile and J Kumar Infraprojects reported a net profit of Rs 73.6 crore and Rs 67.54 crore, indicating an increase of 74.5% YoY and 64.5% YoY, respectively. Their revenue also grew 94.2% and 31.2% respectively. Even though 23 out of 24 companies reported profits for the quarter, 11 companies saw a YoY fall in their net profit. Jubilant Pharmova, DCM Shriram Industries and Rupa & Company reported a fall in net profit by 96.2%, 92.6% and 68.2% respectively.

Sarda Energy & Minerals, J Kumar Infraprojects, AGI Greenpac and Stylam Industries outperformed their respective industries over a year, while eight companies outperformed their respective industries over a quarter, 11 outperformed over a month. 

From the portfolio, HIL announced the highest basic annual EPS of Rs  280.5, followed by Sarda Energy & Minerals (Rs 223.1), Ion Exchange (India) (Rs 137.3), Technocraft Industries (Rs 109.3) and Mastek (Rs 106.5).

Currently, out of 24 stocks in the holding, eight are trading in the PE Buy Zone, aggregating to 33% of stocks, and five stocks are trading in the PE Sell Zone, aggregating to 21%. Stocks in the Buy Zone include Route Mobile, Ethos, AGI Greenpac and J Kumar Infraprojects, whereas Rajshree Polypack, Ion Exchange (India), Jubilant Pharmova, ADF Foods and DCM Shriram Industries are in the Sell Zone. Additionally, all stocks’ PE is below their respective sectors. 

How volatile is Singhania’s portfolio?

For a year, beta for 14 stocks in his portfolio is greater than 1 and the other 10 have it lesser than 1. However, only eight stocks have a beta greater than one for a quarter. The average beta of the portfolio for a year is 1.1, whereas it is 1  for a quarter. 

The volatility of Singhania’s portfolio is in line with the benchmark index, which shows that the marquee investor is not a risk taker nor is he especially risk-averse. He also holds stocks within both the PE Buy and Sell Zones. He tends to focus on value stocks, as all of his stocks have PE ratios lesser than that of their sectors. To conclude, even though Sunil Singhania has a neutral-risk portfolio, he looks for positive fundamentals and decent valuations while placing his bets.

 
Trendlyne Marketwatch
Trendlyne Marketwatch
07 Dec 2022
Markets closes lower, ICICI Securities upgrades rating on Thermax to ‘Buy’

Trendlyne Analysis

Nifty 50 lost over 80 points and closed in the red on a volatile day of trade. European indices followed the global trend and traded lower than Tuesday’s levels amid weak global cues. Reserve Bank of India’s Monetary Policy Committee raised the repo rate by 35 bps to 6.25% from the earlier 5.9%. RBI also revised down India’s FY23 GDP growth to 6.8% from 7%. Major Asian indices closed in the red, in line with the US indices, which closed lower on Tuesday.

US stocks fell as investors continued to assess the US Fed’s move in its next meeting to combat inflation. In addition, Goldman Sach’s CEO David Solomon warned about jobs and pay cuts amid uncertain outlook. The tech-heavy NASDAQ 100 index fell 2% while the Dow Jones closed 1% lower. Brent crude oil futures traded in the red after falling over 8% in the last three trading sessions as traders assess slowing global economic growth weakening crude oil demand.

Nifty Smallcap 100 and Nifty Midcap 100 closed in the red, following the benchmark index. Nifty Metal and Nifty Media closed lower than Tuesday’s close. Nifty IT closed in the red, taking cues from the NASDAQ 100, which closed deep in the red on Tuesday.

Nifty 50closed at 18,560.50 (-82.3, -0.4%), BSE Sensexclosed at 62,410.68 (-215.7, -0.3%) while the broader Nifty 500closed at 15,862.00 (-60.9, -0.4%)

Market breadth is in the red. Of the 1,950 stocks traded today, 731 were gainers and 1,154 were losers.

  • Money Flow Index (MFI) indicates that stocks like GMR Airports Infrastructure, Aditya Birla Capital, Sharda Cropchemand JK Lakshmi Cementare in the overbought zone.

  • Brent crude oil prices slipped below $80 per barrel due to weakening global demand.

  • UNO Minda beats Schaeffler India in QoQ and YoY revenue and profit growth, FII holdings, PB ratio and broker average rating. But it lags in PE ratio, annual RoE, one-year price change and broker average target upside.

  • Indiabulls Real Estate rises despite the broader sectoral index Nifty Realty falling in trade. The stock ranks negative and checks 35% parameters on Trendlyne’s checklist. Meanwhile, it shows up in a screener of stocks with PE Ratio under 10.

  • Dabur India and Cummins India hit their 52-week highs of Rs 610.7 and Rs 1458.9 respectively. Dabur India rises for two sessions, while Cummins India trades higher for five sessions.

  • Ahluwalia Contracts secures an order worth Rs 55.4 crore pertaining to a construction at Plaksha University, in Punjab. With this, the company’s order inflow in FY23 stands at Rs 4,017.6 crore. The stock shows up in a screener for companies with low debt.

  • High-return durable stocks like Allcargo Logistics, HCL Technologies and Hindustan Aeronautics gain more than 13% in the past 90 days.

  • Apollo Hospitals Enterprise, Tata Steeland Hindalco Industriesoutperform their respective sectors in annual profit growth.

  • Healthcare Equipment & Supplies, Telecommunications Equipment and Metals & Mining sectors gain over 6.5% in the past month.

  • FII holdings of PI Industries, Zomato and Triveni Turbine increase by 17%, 15.5% and 5.3% QoQ respectively.

  • Seshagiri Rao, Joint Managing Director and Group CFO of JSW Steel, says that the global demand for steel fell 3-4% but production levels are adapting. He adds that the import of steel to India is increasing as its economy is in a better position compared to its peers.

  • ICICI Securities upgrades its rating on Thermax to ‘Buy’ from ‘Add’ with a target price of Rs 2,480. This indicates an upside of 18.8%. The brokerage is positive on the firm’s prospects given its technical expertise, strong order inflow, robust balance sheet and prudent working capital management. It also believes the company will be a key beneficiary of the centre’s thrust towards clean energy and decarbonisation initiatives. It expects Thermax’s revenue to grow at a CAGR of 19% over FY22-25.

  • Realty stocks like DLF, Macrotech Developers, Godrej Properties and Oberoi Realty are falling in trade as RBI announces a decision to hike rates by 35 bps to 6.25%. The broader sectoral index Nifty Realty is also trading in the red.

  • Siemens, AU Small Finance Bankand Power Finance Corp trade above their third resistance or R3 level as the market trades lower.

  • RBI downgrades its forecast for India’s GDP growth in FY23 to 6.8% from the earlier 7%. It keeps the inflation forecast unchanged at 6.7%.

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

  • Larsen & Toubro is rising as its construction business secures orders worth more than Rs 7,000 crore from ArcelorMittal Nippon Steel India. The orders are for the installation of two blast furnaces at Hazira, in Gujarat, and building a six-metric tonnes per annum ore beneficiation plant in Sagasahi, Odisha.

  • Siemens is rising after emerging as the lowest bidder for the 9,000 HP (horsepower) electric locomotives project in Dahod, Gujarat. The stock has a high rank of 52.2% in Trendlyne’s checklist score. It also shows up in a screener for companies with improving RoA over the past two years.

  • Reserve Bank of India’s Monetary Policy Committee raises the repo rate by 35 bps to 6.25% from the earlier 5.9%.

  • Bikaji Foods is rising as it reports an increase in net profit by 43% YoY to Rs 41.5 crore and net sales by 31.8% YoY. The company also saw a YoY increase in raw material and finance costs by 25% and 74% respectively in Q2. Deepak Agarwal, MD of the company, says, "We will continue to expand our distribution network and start CSD channel in the current quarter." The company also shows up in a screener of stocks with low debt.

  • Ircon International wins an order worth Rs 122 crore for the design, installation, testing and certifying of a telecommunication system for a junction in Sri Lanka Railways. The contract will be completed in 24 months. The company shows up in a screener of stocks with high TTM EPS growth.

  • Fennel Private sells a 0.95% stake (6 lakh shares) in Sapphire Foods for Rs 83.6 crore in a bulk deal on Tuesday. Meanwhile, Campbell Advertising sells a 0.2% stake in Easy Trip Planners for Rs 19.3 crore. Quant Mutual Fund buys a 0.5% stake in Jindal Stainless for Rs 48 crore in another bulk deal.

Riding High:

Largecap and midcap gainers today include Siemens Ltd. (2,905.35, 5.12%), Indian Overseas Bank (24.05, 4.57%) and Hindustan Petroleum Corporation Ltd. (232.55, 3.79%).

Downers:

Largecap and midcap losers today include Oberoi Realty Ltd. (912.00, -3.42%), Jubilant Foodworks Ltd. (538.70, -2.99%) and Atul Ltd. (8459.65, -2.70%).

Movers and Shakers

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

Top high volume gainers on BSE included Hikal Ltd. (385.85, 9.83%), Central Bank of India (28.15, 6.83%) and Rashtriya Chemicals & Fertilizers Ltd. (135.70, 5.85%).

IFB Industries Ltd. (939.50, 3.26%) was trading at 14.5 times of weekly average. Siemens Ltd. (2,905.35, 5.12%) and HDFC Asset Management Company Ltd. (2,273.80, 3.73%) were trading with volumes 9.2 and 6.8 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

23 stocks hit their 52-week highs, while 1 stock tanked below their 52-week lows.

Stocks touching their year highs included - Aegis Logistics Ltd. (336.15, 3.78%), AIA Engineering Ltd. (2,748.00, -1.22%) and Bank of Baroda (176.50, 1.20%).

Stock making new 52 weeks lows included - Indigo Paints Ltd. (1,326.15, -0.47%).

7 stocks climbed above their 200 day SMA including IFB Industries Ltd. (939.50, 3.26%) and ICICI Lombard General Insurance Company Ltd. (1,248.00, 2.28%). 17 stocks slipped below their 200 SMA including Sobha Ltd. (634.40, -5.19%) and Sterlite Technologies Ltd. (170.90, -3.91%).

 
Trendlyne Marketwatch
Trendlyne Marketwatch
06 Dec 2022
Market closes lower, World Bank upgrades India’s GDP growth to 6.9% in FY23

Trendlyne Analysis

Indian indices recovered from their day’s low but still closed in the red on a volatile day of trade. European indices traded lower than Monday's levels amid weak global cues. Investors look ahead to the RBI’s Monetary Policy Committee decision to be announced tomorrow. Most major Asian indices closed in the red, in line with the US indices which closed lower on Monday. US stocks fell amid rising treasury yields as unexpectedly strong US Services data muddled the Fed’s rate hike views. The tech-heavy NASDAQ 100 fell 1.7% while the Dow Jones closed 1.4% lower. Brent crude oil futures traded higher after falling over 4.5% in the last two trading sessions.

Nifty Smallcap 100 and Nifty Midcap 100 closed in the red, following the benchmark index. Nifty Pharma and Nifty Auto closed lower than Monday’s levels. Nifty IT closed in the red, taking cues from the NASDAQ 100, which closed lower on Monday.

Nifty 50closed at 18,642.75 (-58.3, -0.3%), BSE Sensexclosed at 62,626.36 (-208.2, -0.3%) while the broader Nifty 500closed at 15,922.85 (-44.4, -0.3%)

Market breadth is in the red. Of the 1,948 stocks traded today, 786 were gainers and 1,107 were losers.

  • Dabur India beats Marico in YoY & QoQ revenue growth, QoQ profit growth and broker average rating but lags in PE ratio, annual RoCE and average broker target upside.

  • Westlife Developmentand Rashtriya Chemicals & Fertilizershit their all-time highs of Rs 815.5 and Rs 132.2 respectively. Westlife Development rises for three sessions, while the other trades higher for four sessions.

  • Maruti Suzuki India is falling as it plans to recall 9,125 vehicles manufactured between November 2 and 28 on the suspicion of a possible defect in a seat belt component. The stock shows up in a screener for companies with declining net cash flow.

  • Natco Pharma is rising as it receives a favourable judgement from the Delhi High Court. The court dismissed the appeal filed by FMC Corp, FMC Singapore and FMC India stating that the Natco chlorantraniliprole (CTPR) process does not infringe FMC's Indian patent 298645.

  • Easy Trip Planners falls more than 8% in trade. However, the stock ranks high as it passes 54% on Trendlyne’s checklist. The stock shows up in a screener with high momentum score.

  • World Bank upgrades its forecast for India’s FY23 GDP growth to 6.9% from the earlier 6.5%. It says that India is in a better position to tackle global pressures. However, it expects inflation of 7.1% in FY23.

  • Punjab National Bank touches a 52-week high of Rs 57.5. The stock ranks medium and checks 46% parameters on Trendlyne’s checklist. It shows up in a screener of stocks with improving momentum score and RoE in the past two years.

  • ICICI Direct maintains its ‘Buy’ rating on Motherson Sumi Wiring India with a target price of Rs 75, implying an upside of 25%. The brokerage is optimistic about the company’s growth prospects given the rise in components per vehicle on the back of increasing electrification of vehicles. It also expects the firm to benefit from the demand recovery in the domestic automobile space. The brokerage estimates the company’s net profit to grow at a CAGR of 25.9% over FY22-25.

  • India’s sugar output could fall by 7% this year due to adverse weather conditions and lead to a decrease in exports, say reports.

  • Ratnamani Metals & Tubes rises as it receives domestic and export orders aggregating to Rs 262.52 crore.

  • Metal stocks like Tata Steel, Hindalco Industries and Steel Authority of India (SAIL) are falling in trade. All constituents of the broader BSE Metal index trade in the red.

  • Gravita India is rising as its step down subsidiary, Gravita Togo SAU, starts production of aluminium cast alloys from a recycling plant in Togo, West Africa. The plant has an annual capacity of 4,000 MTPA, which will aid in adding Rs 60 crore per annum to the revenue with gross margins of approximately 26%.

  • Indian rupee falls to a one-month low of 82.30 against the US dollar in early trade today.

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

  • Bajaj Consumer Care is rising as the company's board is set to consider a proposal for the buyback of fully paid equity shares at its meeting on Friday. The company features in a screener of stocks with improving cash flow and good durability.

  • Ahluwalia Contracts (India) is rising as it secures an order worth Rs 174.9 crore from the government of Assam. The order pertains to the construction of a public auditorium with a seating capacity of 5,000 in Guwahati. The company shows up in a screener for stocks in the PE Buy zone with a good durability score and a rising momentum score.

  • Sunil Duggal, Group CEO of Vedanta, says that easing of Covid norms in China will help improve metal prices. He adds that the company is increasing the capacity of electrosteel and aims to subsequently expand it to 10 million tonnes.

  • Porinju Veliyath sells a 0.9% stake in Hindware Home Innovation in a bulk deal on Monday. The approx value of the deal is Rs 24.7 crore.

  • IRB Infrastructure Developers is rising after the company and IRB Infrastructure Trust report an increase in toll collections by 39% YoY to Rs 365.9 crore in November. The company’s Chairman and MD Virendra Mhaiskar says, "With inflationary concerns gradually easing, traffic has remained strong and grown on an MoM basis." The stock is nearing its 52-week high.

  • Sequoia Capital India sells a 3.7% stake (20 lakh shares) in Go Fashion (India) for Rs 228 crore in a bulk deal. Canara Robeco Mutual Fund picks up a 0.59% stake in Go Fashion in another deal.

  • Promoter group Srinivasan Trust sells a 0.54% stake (25.6 lakh shares) in TVS Motor Co for Rs 262.1 crore in a bulk deal. Meanwhile, Inox Leasing and Finance (promoter group) sells a 1.64% stake in Gujarat Fluorochemicals for Rs 589.5 crore in a bulk deal.

Riding High:

Largecap and midcap gainers today include IDBI Bank Ltd. (58.70, 8.20%), Union Bank of India (88.15, 6.33%) and Bank of India (90.30, 4.63%).

Downers:

Largecap and midcap losers today include PB Fintech Ltd. (457.70, -4.13%), LTIMindtree Ltd (4,815.55, -3.21%) and Varun Beverages Ltd. (1,309.60, -3.19%).

Movers and Shakers

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

Top high volume gainers on BSE included Punjab & Sind Bank (29.85, 19.40%), Jindal Stainless Ltd. (197.30, 10.22%) and PNC Infratech Ltd. (291.15, 9.39%).

Top high volume losers on BSE were Aptus Value Housing Finance India Ltd. (306.05, -2.11%), Cera Sanitaryware Ltd. (5,329.00, -1.65%) and Kansai Nerolac Paints Ltd. (445.00, -0.53%).

TCNS Clothing Co. Ltd. (590.50, 3.72%) was trading at 60.0 times of weekly average. Nesco Ltd. (651.15, 1.96%) and Narayana Hrudayalaya Ltd. (757.00, 0.21%) were trading with volumes 6.9 and 6.1 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

18 stocks made 52-week highs,

Stocks touching their year highs included - Bank of Baroda (174.40, 1.42%), Bank of India (90.30, 4.63%) and Britannia Industries Ltd. (4,424.35, 0.48%).

12 stocks climbed above their 200 day SMA including Advanced Enzyme Technologies Ltd. (315.50, 2.72%) and Prince Pipes & Fittings Ltd. (632.10, 1.41%). 18 stocks slipped below their 200 SMA including Network 18 Media & Investments Ltd. (73.50, -3.23%) and LTIMindtree Ltd (4,815.55, -3.21%).

 
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The Baseline
05 Dec 2022
Five analyst picks with high upsides in target price
By Abhiraj Panchal

This week we take a look at analyst picks with high upsides (over 15%).

  1. Mahindra & Mahindra: BOB Capital Markets assumes coverage of this auto manufacturer with a ‘Buy’ rating and a target price of Rs 1,496. This implies an upside of 18.7%. In Q2FY23, the company’s net profit surged 43.8% YoY to Rs 2,772.7 crore and revenue rose 39.1% YoY.

Analyst Milind Raginwar is optimistic about the firm’s prospects on the back of an improving business environment. He said, “Margin headwinds are likely to recede with better raw material availability, moderating costs, price hikes and optimal utilisation.” The analyst also sees the company’s strong order book amid moderating raw material costs as a key positive. 

Raginwar points out that the demand for Mahindra’s new sports utility vehicles is higher than the planned supply capacity. He believes this will lead to an expansion in production capacity in the coming quarters. The analyst expects the company’s net profit to grow at a CAGR of 24% over FY22-25. 

  1. Ashok Leyland: ICICI Securities maintains its ‘Buy’ rating on this commercial vehicle (CV) manufacturer with a target price of Rs 180. This indicates an upside of 22.2%. In Q2FY23, the company turned profitable on a YoY basis with a net profit of Rs 163.9 crore and its revenue rose 72.6% YoY. 

Analysts Basudeb Banerjee and Pratit Vajani believe the robust retail demand for trucks is driven by infrastructure, mining and e-commerce segments. They added that the demand for new trucks was also due to the need to replace old fleets with more efficient ones. The company’s management is confident about the CV upcycle lasting till FY25.

Banerjee and Vajani are positive about the company’s dominant position in the CV market. They said, “Ashok Leyland has recovered its M&HCV (medium & heavy commercial vehicle)market share from sub-25% a year ago to around 32% now and is confident of retaining it.” The analysts estimate the firm’s revenue to grow at a CAGR of 39.4% over FY22-24. 

  1. ICICI Prudential Life Insurance (ICICIPRU): Motilal Oswal maintains a ‘Buy’ call on this life insurance provider with a target price of Rs 600, indicating an upside of 26.2%. Analysts Nitin Aggarwal and Yash Agarwal arranged an interactive session with the top management of ICICIPRU to discuss various regulations being introduced by the regulator, the industry, and its growth and margin outlook. Based on the discussion, the analysts understand that the insurance provider is focusing on revenue growth rather than targeting product mix.

The analysts said, “The management indicated that growth in absolute value in new business (VNB)  is the most important metric.” They believe that a pick up in annual premium equivalent (APE) and an improving product mix will keep the margin steady and drive VNB growth.

The analysts added that an increase in agent recruitment, new partnerships and a strategy to approach customers with a wider product range through all channels will boost premium growth. They expect ICICIPRU to deliver 23% CAGR in VNB over FY22-24, led by premium growth and improvement in margin.

  1. Maruti Suzuki India: Sharekhan reiterates a ‘Buy’ call on this auto manufacturer with a target price of Rs 10,965. This indicates an upside of 24.7%. Analysts from the brokerage said, “We stay positive on Maruti Suzuki India as volumes are expected to regain pace on the back of new launches and improving demand in both rural and urban markets.” They added that easing in electronic components shortage, softening commodity prices and positive operating leverage are likely to keep earnings growth momentum intact.

Maruti’s management expects to regain market share on the back of new launches and a stronger distribution network. The analysts believe that the automobile manufacturer is well positioned to accomplish its electric vehicle plans as well. They expect exports to be a long-term key growth driver for the company.

They remain optimistic on the back of a better product mix, structural growth outlook, healthy balance sheet, and comfortable valuations. 

  1. CESC: Emkay maintains a ‘Buy’ call on this electric utility company but reduces the target price to Rs 101, indicating an upside of 33.1%. The company reported a standalone profit after tax of Rs 243 crore (up 3.4% YoY), in line with the brokerage's estimates. The consolidated profit after tax fell 5.9% to Rs 320 crore, which analysts Abhineet Ananda and Chinmay Kabra believe fell due to lower profit at Haldia Energy. 

The analysts said, “Performance of distribution segments of Rajasthan and Malegaon was not encouraging. Rajasthan distribution franchises, despite having completed four to five years, have not been able to see break-even.” 

Yet Ananda and Kabra remain positive about the company as the performance of Dhariwal Infrastructure and Noida circle has improved. Haldia profits are normalising as well. According to them, the key triggers include an increase in standalone tariffs and the performance of distribution franchises 

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

(You can find all analyst picks here)

 
Trendlyne Marketwatch
Trendlyne Marketwatch
05 Dec 2022
Market closes flat, L&T's construction business bags order worth Rs 2,500-5,000 crore.

Trendlyne Analysis

Indian indices recovered from their day’s low and closed flat on a volatile day of trade. European indices traded lower than Friday’s levels. However, most major Asian indices closed higher as China eased Covid-19 curbs over the weekend, reopening its economy partially. US stocks closed mixed on Friday after a strong US jobs report fueled expectations that the Federal Reserve would maintain its path of interest rate hikes to curb elevated inflation. The tech-focused NASDAQ 100 fell 0.4% while the S&P 500 closed flat on Friday. Brent crude oil futures traded higher after losing over 1% on Friday as traders assessed OPEC+ holding oil output targets and China easing Covid curbs.

Nifty Smallcap 100 closed in the green, despite the benchmark index closing flat. Nifty Media and Nifty Metal closed higher than Friday’s close. Nifty IT closed lower, taking cues from the tech-heavy NASDAQ 100, which closed in the red on Friday.

Nifty 50 closed at 18,701.05 (5.0, 0.0%) , BSE Sensex closed at 62,834.60 (-33.9, -0.1%) while the broader Nifty 500 closed at 15,967.20 (3.7, 0.0%)

Market breadth is in the green. Of the 1,972 stocks traded today, 1,135 were on the uptrend, and 770 went down.

  • Mahindra & Mahindra Financial Servicessees a long buildup in its December 29 future series as its open interest rises 16.2% with a put-call ratio of 0.79.

  • Tata Motors, Brightcom Group, Easy Trip Planners and Rail Vikas Nigam trade below their second support or S2.

  • Rajesh Jejurikar, Executive Director (Auto & Farm Sectors) of Mahindra & Mahindra, says a shortage of semiconductors led to the MoM fall in tractor sales in November. He expects its impact to persist in December. Jejurikar believes there could be supply disruptions in 2023 as well.

  • Metal stocks like Hindalco Industries, Tata Steel, National Aluminium Co, Vedanta and JSW Steel are rising in trade. The broader sectoral index BSE Metal is also trading in the green.

  • Larsen & Toubro is rising as its buildings and factories construction business bags an order worth Rs 2,500-5,000 crore from the National High-Speed Rail Corp. The order is for the construction of Sabarmati depot in Gujarat for the Mumbai-Ahmedabad high speed rail. Scope of the project involves design, supply, construction & testing, and commissioning of the depot.

  • Kalyan Jewellers India rises to an all-time high of Rs 116.4 per share. The stock has a high rank of 70% in Trendlyne's checklist score. It also features in a screener with high return and technically strong value stocks.

  • HDFC Securities maintains its ‘Add’ rating on Bandhan Bank with a target price of Rs 273, indicating an upside of 11.9%. The brokerage believes the bank’s focus on tightening underwriting standards and portfolio diversification improves its growth prospects in the medium to long term. However, in the near term, it sees elevated provisions and high operating expenses impacting profitability. The brokerage expects the bank’s net interest income to grow at a CAGR of 14.2% over FY22-25. The stock is currently in the P/E Buy zone.

  • Rainbow Childrens Medicare is falling as 1.5 crore shares (15% equity) amounting to Rs 1,119 crore change hands, according to reports.

  • Angel One is falling as its monthly gross client acquisition and average client funding book in November falls by 28.3% YoY and 16.6% YoY respectively. Meanwhile, its client base surges 66.5% YoY. Its average daily turnover (ADTO) increases 79.7% YoY but falls on a month-on-month basis due to a decline in the ADTO of F&O.

  • IT stocks like Persistent Systems, LTIMindtree, Mphasis and L&T Technology Services are falling in trade. The broader sectoral index Nifty IT is also trading in the red.

  • SpiceJet is rising as the company schedules its annual general meeting (AGM) on December 26. The meeting will seek approval of audited financial results of FY22, ended March 2022, and reappointment of Ajay Singh as a director.

  • India’s Services PMI rises to 56.4 in November compared to 55.1 in October as sales improve due to strong growth in demand and advertising.

  • Easy Trip Planners is falling despite Go First entering into an exclusive general sales agreement with the company. This agreement mandates Easy Trip Planners to officially sell, promote and market Go First’s passenger tickets and other services in Saudi Arabia.

  • Ion Exchange (India) rises as it bags a contract worth Rs 343.36 crore from Indian Oil Corp of India for its zero liquid discharge plant at the Panipat refinery. The scope of the contract is design, engineering, manufacturing, supply, testing, commissioning, operation and maintenance of the plant for five years.

  • Hindustan Aeronautics (HAL) is rising after receiving an income tax refund order of Rs 427.5 crore. The Income Tax Appellate Tribunal passed an order in favour of HAL, allowing research & development expenses of Rs 595.2 crore as capital expenditure, thus resulting in the refund. The income tax refund includes interest of Rs 176.9 crore.

  • Gujarat Fluorochemicals falls over 3% in early trade as 20.1 lakh shares (1.8% equity) amounting to Rs 670.7 crore change hands, according to reports.

  • Rajesh Exports is falling as Managing Director Prashant Mehta retires. His resignation is effective from December 3.

  • Radhakishan Damani sells a 1.31% stake in VST Industries for approx Rs 71.1 crore on Friday.

  • Mahindra & Mahindra Financial Services’ disbursements grew 75% YoY to Rs 4,500 crore in November. Its stage 2 and stage 3 accounts (an account where assets’ credit quality reduces but are not classified into NPAs) see a fall QoQ. It shows up in a screener with decreasing provisions in its recent results.

  • Promoter group Nirmal Madhu Family Trust sells a 0.59% stake (5.2 lakh shares) in IIFL Wealth Management for Rs 94.5 crore in a bulk deal. Meanwhile, General Atlantic Singapore sells a 1.8% stake in Krishna Institute of Medical Sciences (KIMS) for Rs 214.6 crore. The shares (1.7% stake) were picked up by Amansa Holdings in KIMS.

  • Softbank’s SVF India Holdings (Cayman) sells a 5.08% stake (2.2 crore shares) in PB Fintech for Rs 1,042.5 crore in a bulk deal. The shares were picked up by Societe Generale and Morgan Stanley Mauritius.

Riding High:

Largecap and midcap gainers today include Mahindra & Mahindra Financial Services Ltd. (241.15, 5.31%), Aditya Birla Capital Ltd. (158.65, 4.58%) and Hindalco Industries Ltd. (481.20, 4.36%).

Downers:

Largecap and midcap losers today include Zomato Ltd. (65.45, -4.52%), Bharat Heavy Electricals Ltd. (87.65, -3.20%) and TVS Motor Company Ltd. (1,017.80, -2.92%).

Crowd Puller Stocks

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

Top high volume gainers on BSE included JK Lakshmi Cement Ltd. (825.35, 10.26%), Advanced Enzyme Technologies Ltd. (307.15, 8.30%) and Swan Energy Ltd. (273.85, 7.41%).

Top high volume loser on BSE was Gujarat Fluorochemicals Ltd. (3,249.05, -5.80%).

Medplus Health Services Ltd. (703.50, 4.36%) was trading at 24.2 times of weekly average. Capri Global Capital Ltd. (757.00, 0.73%) and Laxmi Organic Industries Ltd. (318.75, 4.78%) were trading with volumes 15.4 and 6.8 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

26 stocks overperformed with 52 week highs,

Stocks touching their year highs included - Apollo Tyres Ltd. (318.95, -0.08%), Bank of India (86.30, 2.07%) and Bharat Heavy Electricals Ltd. (87.65, -3.20%).

23 stocks climbed above their 200 day SMA including Advanced Enzyme Technologies Ltd. (307.15, 8.30%) and Sobha Ltd. (670.05, 5.16%). 13 stocks slipped below their 200 SMA including Zomato Ltd. (65.45, -4.52%) and IFB Industries Ltd. (927.70, -2.50%).

 
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The Baseline
02 Dec 2022
Five Interesting Stocks Today
  1. Larsen & Toubro: This construction and engineering company reached an all-time high of Rs 2,110 today as it closed a $107 million three-year loan from Sumitomo Mitsui Banking Corp. The company’s subsidiary, L&T Energy Hydrocarbon, secured two offshore contracts worth Rs 1,000-2,500 crore in total on Monday. The contract is India’s first order to decommission offshore facilities from British Gas Exploration and Production India. 

The company’s infrastructure business, L&T Construction, also won an order worth Rs 1,000-2,500 crore from Greenko Group on November 24. It is for the construction of an off-stream pumped storage project in Madhya Pradesh. Larsen & Toubro also acquired the entire stake held by Chiyoda Corp in L&T-Chiyoda, a joint venture between the two companies, on November 22. 

According to Sharekhan, the company’s H1FY23 performance was strong despite cost pressures in its core business, and supply chain challenges. L&T also has a rich order intake in the domestic and international markets. The brokerage maintains its ‘Buy’ rating on the company with a target price of Rs 2,390. This indicates a potential upside of 15.8%. The company features in a screener of stocks with high Trendlyne momentum score. 

  1. Apollo Tyres:This tyre stock rose more than 4% in trade after it announced Q2FY23 results. While its net profit rose 11.9% YoY to Rs 194.5 crore, its standalone net profit fell 9.9% YoY to Rs 80.8 crore. This was caused by a 9.9% YoY increase in raw material costs, which also pulled its EBITDA margin down by 61 bps YoY to 12%. The company’s management, however, expects raw material costs to ease from Q3FY23.

Apollo Tyres’ revenue rose by 16.8% YoY in Q2 driven by price hikes, which were in the range of 5-12%. Decent performance in the European markets helped drive revenue growth for Apollo Tyres, despite these markets facing high energy prices. The management expects replacement demand in domestic markets to improve, especially in the OEM (original equipment manufacturers) segment. The stock also shows up in a screener with increasing revenue for the past two quarters.

Reports suggest that easing crude oil prices and correction in rubber prices bode well for tyre stocks. Rubber and crude oil consist of nearly 60% of the raw material cost as a percentage of sales and a fall in prices would significantly bring down raw material costs. Apollo Tyres rose 6% in trade on Monday and touched an all-time high on Thursday in hopes of low costs and improving margins in H2FY23. The stock rose nearly 9% in the past month and 11% in the past week.

Trendlyne’s consensus recommendation has 20 analysts suggesting a ‘Buy’ on the stock. Reliance Securities maintains a ‘Buy’ as it expects the company’s volumes to grow in FY23-24 on the back of increasing demand from OEMs and EBITDA margins to be around 13.1% in FY23E. However, the stock is in the PE Sell Zone as it is trading below its current PE valuation. 

  1. Zomato: This internet software company saw a series of senior-level exits in the past month. Zomato fell over 4% after its co-founder Mohit Gupta resigned from his post on November 18. Although the company rose 6.5% in the past month, it has fallen by 57.8% from its 52-week high of Rs 157.9. Recent reports on the company's plans to lay off 3% of its workforce in order to scale down costs and turn profitable have likely weakened the investor sentiment. 

In the recently ended quarter, Zomato’s net loss narrowed to Rs 250.8 crore, as against Rs 429.6 crore in Q2FY22. Brokerage firm Ambit is optimistic about the company’s growth and has a ‘Buy’ rating on the company with a target price of Rs 94. It says that Zomato's market share in the food delivery space rose to 55% in H1CY22. The brokerage expects the entire enterprise (including Blinkit) to turn profitable in approximately four years, by FY27.

Motilal Oswal also recommends a ‘Buy’ rating on the stock. The brokerage says that the acquisition of Blinkit has been positive for the company and it has not lost market share in the last quarter.

Meanwhile, Alipay Singapore Holding sold a 3.15% stake (26.2 crore shares) in Zomato for Rs 1,631.4 crore in a bulk deal on Wednesday. In another deal, Camas Investments picked up a 1.18% stake (9.8 crore shares) worth Rs 607.6 crore in the company. 

  1. Rail Vikas Nigam: This rail infrastructure construction company gained 84.6% in the past month. With improving investor sentiment, the stock’s momentum score has steadily risen since mid-October. The uptrend comes on the backdrop of a strong business outlook for the company. Its robust Q2FY23 performance, order wins, and a rise in government capital expenditure on railway infrastructure has fuelled the street’s optimism surrounding the stock. 

Rail Vikas Nigam’s net profit in Q2 rose 36.5% YoY to Rs 381.2 crore and beat Trendlyne’s Forecaster estimates by 37.6%. The stock also has a Trendlyne consensus recommendation of ‘Strong Buy’ and shows up in a screener which lists companies with improving cash flow and high durability.

The company has been trying to diversify its order book and bag non-railway infrastructure projects as well. Between September and November, the company won four infrastructure contracts, of which three were non-railway projects. It won an international contract from the Indian government for the construction of a harbour in the Maldives for Rs 1,544.6 crore. It also won contracts worth Rs 484.2 crore from the Ahmedabad Municipal Corporation for the construction of canals. Overall, the company had an order book of Rs 55,000 crore at the end of Q2 and the management aims to increase it to Rs 1 lakh crore in a few years. To meet its target, it has been aggressively focusing on bidding for projects in the domestic and international markets.

  1. Aditya Birla Fashion & Retail: This fashion retailer announced that its arm TMRW acquired eight digital-first lifestyle and apparel brands on Monday for Rs 289 crore. The management expects these acquisitions to increase the firm’s digital presence across apparel segments like casual wear, kids wear and western wear. The company has been scaling up its digital capabilities to increase sales through e-commerce. Robust growth in e-commerce sales was a key growth driver in Q2FY23. Digital sales grew 24% YoY. 

The company’s revenue rose 49.7% YoY to Rs 3,074.6 crore and net profit jumped nearly 7X YoY. This growth was led by aggressive network expansion offline and online. The company added 85 branded stores in Q2 and plans to continue ramping up its store count across business segments in H2FY23. Aditya Birla Fashion acquired Reebok’s India operations to diversify its product portfolio with an entry into the footwear segment. It also acquired a majority stake in Masaba to expand into the beauty segment. 

The management aims to acquire 30 brands across the fashion sub-categories within three years, which will be funded through internal accruals initially. This is in line with the company’s strategy to lower debt and strengthen its balance sheet. It reduced debt to Rs 243 crore in Q2FY23 from Rs 2,500 crore at the end of FY20. The stock shows up in a screener for companies with low debt.

Looking ahead, the management expects consumer demand to rise in H2FY23 on the back of the festive/wedding season and normalisation of economic activities. However, ICICI Direct sees the risk of rising margin pressure as investments into new brands may lead to higher-than-expected working capital requirements.

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
02 Dec 2022
Market closes lower, Uniparts India’s IPO gets bids for 25.3X of total shares on offer

Trendlyne Analysis

Nifty 50 closes in red today. The rupee closed at 81.2 against the dollar on Thursday. The dollar was down to 16-week lows as US consumer spending increased in October.

Asian stocks trade lower as traders waited for the jobs report and Federal Reserves’ cues on its next policy moves. US market closed flat as data suggested that rate hikes are beginning to show results in the economy. S&P 500 fell 0.08% while Nasdaq gained 0.13% in trade on Thursday. Tokyo stocks closed lower on Friday. European stock markets dropped on opening today as attention switched to the release of key US jobs data.

Nifty Smallcap 100 and Nifty Midcap 100 close higher today. Nifty Power and Nifty Auto close in red while Nifty Media and Nifty Realty close in the green.

Nifty 50 closed at 18,696.10 (-116.4, -0.6%) , BSE Sensex closed at 62,868.50 (-415.7, -0.7%) while the broader Nifty 500 closed at 15,963.50 (-40.5, -0.3%)

Market breadth is in the green. Of the 1,943 stocks traded today, 1,126 were in the positive territory and 764 were negative.

  • Relative strength index (RSI) indicates that stocks like Power Finance Corp, Aditya Birla Capital, JK Cement and Britannia Industries are in the overbought zone.

  • Raymond surges to a new all-time high of Rs 1,630 per share. The stock has a high rank of 73.9% in Trendlyne's checklist score. It also features in a screener which reflects stocks which benefit from lower crude oil prices.

  • Amara Raja Batteries is rising after announcing the signing of an MoU with the government of Telangana to set up a lithium-ion battery Gigafactory in the state. The facility is expected to have a capacity of 16 Gigawatt hours (GWh) and a battery pack assembly unit of up to 5 GWh. The stock shows up in a screener for companies with increasing revenue sequentially for the past two quarters.

  • Maruti Suzuki Indiais falling as the company announces price hikes from January 2023 to reduce cost pressure driven by overall inflation and recent regulatory requirements.

  • United Breweries and Aditya Birla Capital hit their 52-week highs of Rs 1,757.5 and Rs 153.3 respectively. Both stocks rise for four consecutive sessions.

  • Uniparts India’s Rs 836.5 crore IPO gets bids for 25.3X of the available 1.01 crore shares on offer on the last day of bidding. The retail investor quota gets bids for 4.6X of the available 50.6 lakh shares on offer.

  • ICICI Securities maintains its ‘Add’ rating on Westlife Foodworld with a target price of Rs 850, implying an upside of 18.2%. The brokerage remains positive about the firm’s prospects given its focus on product mix improvement, consumer experience and aggressive network expansion. The brokerage expects the company’s revenue to grow at a CAGR of 30.5% over FY22-24. The stock is trading in the P/E Buy zone.

  • Bajaj Hindusthan Sugar surges after announcing its repayment of overdues to all lenders. The company does not have any overdues in its account. The stock is trading above its R3 or third resistance.

  • Auto Tyres & Rubber Products, Internet Software & Services, and Broadcasting & Cable TV industries rise more than 7% in the past week.

  • Jindal Stainless, Greenpanel Industries and Rites outperform their respective industries in terms of return on capital employed (RoCE).

  • Media stocks like Zee Entertainment Enterprises, PVR, Network 18 Media & Investments and TV18 Broadcastare rising in trade. The broader sectoral index Nifty Media is also trading in the green.

  • One 97 Communications (Paytm) is rising on the back of healthy loan disbursement growth and the management’s optimistic commentary about profitability. It aims to generate positive free cash flow in the next 12-18 months and turn profitable on an operating level from next year. The stock passes 33.3% of the parameters on Trendlyne's checklist.

  • Krishna Institute of Medical Sciences is rising as 14.5 lakh shares (1.8% equity) amounting to Rs 215 crore change hands, according to reports.

  • SJVN is rising as its wholly owned subsidiary, SJVN Green Energy, signs a memorandum of understanding (MoU) with Grid Corp Of Odisha. The MoU is for developing 1,000 MW hydroelectric projects and 2,000 MW solar power projects through a joint venture company. The projects will require an investment of Rs 20,000 crore.

  • Talbros Automotive Componentssurges as it receives multi-year orders worth Rs 420 crore from domestic and overseas customers across its business divisions, product segments and joint ventures.

  • GST revenue collections rose 11% YoY to Rs 1.46 lakh crore in November but fell by 4% against Rs 1.52 lakh crore in October.

  • NLC Indiainks a memorandum of understanding with Grid Corporation of Odisha for setting up ground-mounted/floating solar power projects, pumped hydro storage projects, green hydrogen projects and any other renewable projects.

  • NMDC is rising as the Centre invites Expression of Interest (EoI) to sell a 50.7% stake in the company as a part of its divestment plan. The Centre will also transfer management control in the company after the sale. The last date for submission of bids is January 27, 2023.

  • The Centre reduces the windfall tax on locally produced crude oil to Rs 4,900 per tonne from Rs 10,200 earlier. It cuts the export tax on diesel to Rs 8 (including Rs 1.5 as road infrastructure cess) from Rs 10.5 per litre. The export tax on petrol remains nil and Rs 5 per litre on aviation turbine fuel remains unchanged.

  • Godrej Properties acquires 18.6 acres in Kandivali, Mumbai, with a developable potential of nearly 3.7 million square feet and a revenue potential of Rs 7,000 crore. This project increases the cumulative expected booking value from projects added in FY23 to Rs 16,500 crore. The stock shows up in a screener for companies with high TTM EPS growth.

  • SoftBank Group plans to sell 2.2 crore shares (5% stake) in PB Fintech for $130 million through a block deal, according to reports. The floor is to be set at Rs 440 per share, a 5% discount on the stock’s latest closing price.

  • Plutus Wealth Management buys 90 lakh shares (0.56% stake) in Bandhan Bank for Rs 212.1 crore in a bulk deal. Himalaya Finance & Investment Co buys 5 lakh shares (2.46% stake) in Venus Pipes & Tubes for Rs 32.9 crore.

Riding High:

Largecap and midcap gainers today include One97 Communications Ltd. (536.95, 7.16%), Bharat Heavy Electricals Ltd. (90.55, 6.97%) and Astral Ltd. (2,018.35, 4.89%).

Downers:

Largecap and midcap losers today include Adani Transmission Ltd. (2,745.70, -3.12%), Eicher Motors Ltd. (3,331.85, -3.07%) and Adani Green Energy Ltd. (2,062.30, -2.42%).

Movers and Shakers

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

Top high volume gainers on BSE included Radico Khaitan Ltd. (1,134.15, 7.06%), HLE Glasscoat Ltd. (686.15, 6.90%) and Prince Pipes & Fittings Ltd. (597.90, 6.26%).

Top high volume losers on BSE were KPR Mill Ltd. (544.60, -1.07%) and Sun TV Network Ltd. (491.65, -0.61%).

MOIL Ltd. (168.35, 4.14%) was trading at 8.4 times of weekly average. Punjab & Sind Bank (23.25, 5.92%) and Amber Enterprises India Ltd. (2,011.75, 3.65%) were trading with volumes 6.8 and 5.2 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

24 stocks overperformed with 52 week highs,

Stocks touching their year highs included - Bank of Baroda (171.20, -0.32%), Bank of India (84.55, 1.74%) and Bharat Heavy Electricals Ltd. (90.55, 6.97%).

29 stocks climbed above their 200 day SMA including Astral Ltd. (2,018.35, 4.89%) and MOIL Ltd. (168.35, 4.14%). 8 stocks slipped below their 200 SMA including Adani Transmission Ltd. (2,745.70, -3.12%) and Bajaj Auto Ltd. (3,659.35, -1.30%).

 
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The Baseline
01 Dec 2022
Chart of the week: India’s interest rate hikes in 2022 lower than most central banks
By Abdullah Shah

Supply shocks, rising demand and high energy prices caused the world to see a sharp rise in inflation in 2022. The Russia-Ukraine conflict only aggravated supply chain disruptions and drove costs higher. Sanctions imposed on Russia by the western nations also made oil, metal and coal pricier. 

Inflation was further worsened by falling currency values, which made imports more expensive. To counter inflation, major central banks began raising interest rates in March, and rates are expected to rise at least until mid-2023. 

The Reserve Bank of India increased interest rates by 190 bps in 2022 on the back of the US Fed raising rates, and the rupee falling against the US dollar. However with inflation muted domestically, the RBI has stayed cautious, raising rates at a lower pace compared to other Central Banks. 

South American Central Banks in Brazil, Chile and Mexico have hiked interest rates sharply.The Central Bank of Chile raised interest rates by 675 bps in 2022, the highest among all central banks, followed by the Central Bank of Brazil’s hike of 450 bps. Mexico’s Banxico has also raised the interest rate by 375 bps. The South American region is battling steep inflation due to bottlenecks in production, high commodity prices and high demand.

The Federal Reserve of the United States has raised interest rates by 375 bps so far in 2022, while the Bank of Canada increased it by 350 bps. The United Kingdom’s Bank of England has also bumped up the rates by 275 bps on the back of higher energy prices and high demand. 

China is the only economy which has dropped rates by 15 bps. The People’s Bank of China made this move to tackle an economy that is weakening due to the zero-Covid policy and falling property prices