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Trendlyne Marketwatch
Trendlyne Marketwatch
10 Nov 2022
Market closes lower, Kaynes Technology's IPO gets bids for 23% of its total available shares

Trendlyne Analysis

Indian indices closed in the red, with the Nifty 50 settling just above the key 18,000 mark. European indices followed the global trend and traded lower than Wednesday’s level. Major Asian indices closed lower, in line with the US indices, which also closed in the red on Wednesday. US stocks snapped their three-day winning streak and closed sharply lower as investors await the mid-term election results that will determine control of the US Congress. Investors also look ahead to the US inflation print, scheduled to be released later today. The tech-heavy NASDAQ 100 fell nearly 2.4% while the Dow Jones closed 2% lower. However, Facebook's parent company, Meta, rose 5.2% after the company cut 11,000 jobs as a cost-cutting measure.

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

Nifty 50closed at 18,028.20 (-128.8, -0.7%), BSE Sensexclosed at 60,613.70 (-419.9, -0.7%) while the broader Nifty 500closed at 15,440.00 (-127.3, -0.8%)

Market breadth is overwhelmingly negative. Of the 1,929 stocks traded today, 527 were gainers and 1,348 were losers.

  • Money Flow Index (MFI) indicates that stocks like Adani Enterprises, Amara Raja Batteries, Indian Overseas Bank, and Bank of India are in the overbought zone.

  • Nippon Life India Asset Managementand Bandhan Bankhit their 52-week lowsof Rs 257 and Rs 220.5 respectively. Both stocks fall for five consecutive sessions.

  • Kaynes Technology's Rs 857.8 crore IPO gets bids for 23% of the available 1.04 crore shares on offer on the first day. The retail investor quota gets bids for 12% of the available 52.6 lakh shares on offer. The IPO consists of a fresh issue of Rs 530 crore and an offer for sale of Rs 327.8 crore.

  • Hindustan Copper, Devyani International, and Indus Towers trade below their third support or S3 level as the market trades lower.

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

  • Macquarie maintains its ‘Underperform’ rating on Pidilite Industries with a target price of Rs 2,250. The brokerage says that the company reported lower volumes but expects margins to improve in Q3FY23.

  • Archean Chemical Industries’ Rs 1,462.3 crore IPO gets bids for 1.4X of the available 1.99 crore shares on offer on the first day of bidding. The retail investor quota gets bids for 2.9X of the available 37 lakh shares on offer.

  • Five Star Business Finance’s Rs 1,960 crore IPO gets bids for 32% of the available 3.04 crore shares on offer on the second day of bidding. The retail investor quota gets bids for 6% of the available 1.5 crore shares on offer.

  • Aurobindo Pharma falls as it confirms that the company's Whole Time Director, P Sarath Chandra Reddy, has been arrested by the Enforcement Directorate. The company is in the process of ascertaining further details.

  • Barclays Merchant Bank (Singapore) sells a 0.54% stake (45.3 lakh shares) in Manappuram Finance for Rs 49.3 crore in a bulk deal on Wednesday.

  • Balrampur Chini Mills' board of directors approve buyback of equity shares for Rs 145.4 crore. The total number of shares bought back would be 40 lakh at Rs 360 each.

  • Sequoia Capital India and SCI Investments sell a 3.28% stake (15.6 lakh shares) in Indigo Paints worth Rs 209.6 crore in a bulk deal on Wednesday. In another deal, ICICI Prudential Life Insurance, Goldman Sachs (Singapore) and Pictet-Indian Equities picked up a 1.7% stake (8.4 lakh shares) in Indigo Paints.

  • Axis Bank falls in trade as Centre considers selling its entire stake (1.55%) in the bank via an offer for sale.

  • Axis Direct upgrades its rating on Britannia Industries to ‘Buy’ from ‘Hold’ and increases the target price to Rs 4,550 from Rs 3,950. This indicates an upside of 10%. The brokerage turns positive on the company’s prospects as it expects raw material prices to stabilise and rural demand to recover in the coming quarters. It believes that the firm is well-placed to capitalise on the improving market conditions, given its proven execution track record, focus on distribution expansion, and robust portfolio planning. The brokerage estimates the firm’s net profit to grow at a CAGR of 19% over FY22-25.

  • PSP Projectsreceives civil construction order worth Rs 200 crore to expand an existing plant from a repeat industrial category client.

  • Auto stocks like Tata Motors, Mahindra & Mahindra, Balkrishna Industries, and TVS Motorare falling in trade. Broader sectoral index Nifty Autois also trading in the red.

  • Tata Power’s arm Tata Power Renewable Energy receives a letter of award from the Maharashtra State Electricity Distribution Corp to set up a 150 MW solar power project in Solapur, Maharashtra. The stock makes it to a screener for companies with high Piotroski scores along with high RoE and EPS growth.

  • FSN E-Commerce Ventures (Nykaa) falls in trade as 1.76 crore shares (0.6% equity) amounting to Rs 306.5 crore change hands. Reports suggest that Citi is looking at offloading shares worth Rs 250 crore in Nykaa. The company’s pre-IPO lock-in period ends today.

  • Dolly Khanna sells a 0.2% stake in Sharda Cropchem during Q2FY23 and now holds 1% in the company.

  • Deepak Nitrite’s Q2FY23 net profit falls 31% YoY to Rs 174.09 crore as expenses shoot up. Input costs rise 38% YoY and power and fuel costs surge 43% in Q2. However, its revenue increased 16.7% YoY as revenue from the advanced intermediates and phenolics segment grow. The company also shows up on a screener of stocks with increasing revenue over the past four quarters.

  • Indian rupee depreciates 21 paise to 81.65 from the previous close of 81.44 against the US dollar in early trade today.

  • Kaynes Technology raises Rs 256.8 crore from anchor investors ahead of its IPO by allotting 43.76 lakh equity shares at Rs 587 each. Investors include Volrado Venture, Nomura Trust, and Goldman Sachs, among others.

  • Tata Motors' Q2FY23 net loss narrows to Rs 944.6 crore from Rs 4,441.5 crore in Q2FY22. Revenue rises 30.5% YoY as sales from Jaguar Land Rover, Tata Commercial Vehicles and Tata passenger vehicles increase. The management expects improving chip supplies to further increase revenue and margin in H2FY23.

Riding High:

Largecap and midcap gainers today include FSN E-Commerce Ventures Ltd. (188.25, 6.52%), Godrej Properties Ltd. (1,235.35, 5.61%) and The New India Assurance Company Ltd. (102.20, 4.66%).

Downers:

Largecap and midcap losers today include Aurobindo Pharma Ltd. (477.80, -11.75%), Deepak Nitrite Ltd. (2,079.35, -9.55%) and Tata Motors Limited (DVR) (222.30, -5.88%).

Movers and Shakers

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

Top high volume gainers on BSE included Gujarat Pipavav Port Ltd. (95.40, 7.37%), FSN E-Commerce Ventures Ltd. (188.25, 6.52%) and Nesco Ltd. (642.60, 5.88%).

Top high volume losers on BSE were TeamLease Services Ltd. (2,490.75, -12.40%), Aurobindo Pharma Ltd. (477.80, -11.75%) and Quess Corp Ltd. (492.90, -9.89%).

General Insurance Corporation of India (141.60, 4.04%) was trading at 13.9 times of weekly average. Lupin Ltd. (719.35, 3.62%) and Oberoi Realty Ltd. (872.10, -4.25%) were trading with volumes 12.4 and 8.5 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

7 stocks took off, crossing 52-week highs, while 17 stocks hit their 52-week lows.

Stocks touching their year highs included - Bank of Baroda (165.45, -0.51%), Federal Bank Ltd. (138.00, -0.07%) and Indian Bank (266.95, -0.19%).

Stocks making new 52 weeks lows included - Aurobindo Pharma Ltd. (477.80, -11.75%) and Divi's Laboratories Ltd. (3,286.75, -0.36%).

9 stocks climbed above their 200 day SMA including The New India Assurance Company Ltd. (102.20, 4.66%) and Lupin Ltd. (719.35, 3.62%). 29 stocks slipped below their 200 SMA including Gujarat Narmada Valley Fertilizers & Chemicals Ltd. (673.45, -5.40%) and Oberoi Realty Ltd. (872.10, -4.25%).

 
Trendlyne Marketwatch
Trendlyne Marketwatch
09 Nov 2022
Market closes lower, Godrej Properties Q2 net profit rises 53.8% YoY to Rs 54.9 crore

Trendlyne Analysis

Indian indices settled in the red after gyrating between losses and gains on a volatile day of trade. European indices traded lower than Tuesday's levels. Most major Asian indices closed lower, despite the US indices closing higher on Tuesday. US stocks rose as investors’ focus shifted toward the mid-term elections that will determine control of the US Congress. Investors also look ahead to the US inflation print, scheduled to be released tomorrow. The tech-heavy NASDAQ 100 rose nearly 0.8% while the Dow Jones closed 1% higher on Tuesday. Brent crude oil futures extended its losses and traded lower after falling almost 3% on Tuesday on speculations over new lockdowns in China as Covid-19 cases rebound.

Nifty Smallcap 100 and Nifty Midcap 100 closed in the red, following the benchmark index. Nifty FMCG and Nifty Bank closed higher than Monday’s close. Nifty IT closed in the red, despite the NASDAQ 100 closing higher on Tuesday.

Nifty 50closed at 18,157.00 (-45.8, -0.3%), BSE Sensexclosed at 61,033.55 (-151.6, -0.3%) while the broader Nifty 500closed at 15,567.25 (-47.9, -0.3%)

Market breadth is in the red. Of the 1,933 stocks traded today, 864 were on the uptrend, and 1,024 went down.

  • Relative strength index (RSI) indicates that stocks like Indian Railway Finance Corp, Mazagon Dock Shipbuilders, Bank of India, and Rail Vikas Nigam are in the overbought zone.

  • Barbeque-Nation Hospitality's Q2FY23 net profit rises 142.6% YoY to Rs 7.1 crore. Rise in revenue helps EBITDA margin rise 10 bps YoY to 18.8%. The company features in a screenerof stocks bought by superstar investors.

  • National Aluminium Co is falling as its Q2FY23 net profit drops 83.2% YoY to Rs 125.4 crore on the back of high raw material prices and power & fuel costs. Revenue drops 2.9% YoY due to a decline in revenue from the aluminium segment. The stock shows up on the screener for companies with declining net profit and profit margin on a YoY basis.

  • Post their results, stocks like Union Bank of India, Vedanta, and Varun Beverages outperform Nifty 50 by 17.8%, 10.4%, and 8.1% respectively over the week.

  • TVS Motor is rising as it signs a memorandum of understanding (MoU) with Amazon India to strengthen electric mobility, electric infrastructure and connected services. Amazon will use a fleet of electric two-wheelers and three-wheelers from TVS Motor for their last-mile deliveries. The two companies will also work together with Amazon business groups for its network and logistical requirements.

  • Archean Chemical Industries’ Rs 1,462.3 crore IPO gets bids for 30% of the available 1.99 crore shares on offer on the first day of bidding, The retail investor quota gets bids for 95% of the available 37 lakh shares on offer. The IPO consists of a fresh issue of Rs 805 crore and an offer for sale of Rs 657.3 crore.

  • Godrej Properties Q2FY23 net profit rises 53.8% YoY to Rs 54.9 crore despite input costs surging 2.8X YoY. The company also reports a 27.7% increase in revenue YoY as pre-sale bookings increase to Rs 2,409 crore. Godrej Properties also acquired a 12-acre land parcel in Mundhwa, Pune, for a premium housing project with a revenue potential of Rs 2,000 crore.

  • Five Star Business Finance’s Rs 1,960 crore IPO gets bids for 2% of the available 3.04 crore shares on offer on the first day of bidding. The retail investor quota gets bids for 3% of the available 1.5 crore shares on offer. The IPO consists entirely of an offer for sale of Rs 1,960 crore.

  • Divi's Laboratories is falling as 5.11 lakh shares (0.2% equity) amounting to Rs 167.8 crore change hands, according to reports.

  • Avanti Feeds surges after the US Food & Drug Administration lifts alert on shrimp exports to the US made by the company’s arm, Avanti Frozen Foods. This lift on import alert will enable Avanti Frozen Foods to accelerate the export of value-added shrimp products to the USA.

  • Indigo Paints falls to an all-time low of Rs 1,331 after about 4% equity change hands in block deals today. Reports suggest that Sequoia Capital India is looking at offloading up to a 3.3% stake in Indigo Paints.

  • Coal,Hardware Technology & Equipment, and Cement and Construction industries rise more than 7% in the past month.

  • ICICI Securities downgrades its rating on Dr Lal Pathlabs to ‘Add’ from ‘Buy’ and lowers its target price to Rs 2,911 from Rs 2,919. This indicates an upside of 10.9%. The brokerage cites lower volume growth and expensive valuations for downgrading its rating on the stock. However, it remains optimistic about the firm’s prospects given its strong brand value and focus on geographic expansion. The brokerage expects the company’s net profit to grow at a CAGR of 11.8% over FY22-24.

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

  • Ittira Davis, Managing Director and CEO of Ujjivan Small Finance, said the bank’s disbursals were more than Rs 4,000 crore in the past four consecutive quarters. This comes after the bank’s disbursements rose 56% YoY to Rs 4,866 crore in Q2FY23.

  • Coal India is rising as its Q2FY23 net profit jumps 105.8% YoY to Rs 6,043.6 crore, aided by higher other income and deferred tax credit. Revenue rises 28.1% YoY on the back of higher realisations and healthy growth in dispatches. The stock shows up on a screener for companies in the PE Buy zone with a high durability score.

  • Bharat Forge’s wholly-owned subsidiary Kalyani Strategic Systems wins an export order worth $155.5 million for a 155 mm artillery gun platform. The order is expected to be executed over three years.

  • PI Industries rises and touches a 52-week high as it reports a 46% YoY rise in net profit to Rs 334.8 crore in Q2FY23. Revenue increases 31% YoY led by domestic volume growth, favourable pricing and rising exports. The company shows up on a screener of stocks with improving book value for the past two years.

  • Metropolis Healthcare falls after reporting a fall in net profit by 30.8% YoY to Rs 40.3 crore in Q2FY23. Revenue fell 0.8% YoY, however, rose 7.3% QoQ. Ameera Shah, Promoter and Managing Director said, “Our revenue contribution from the wellness segment increased to 12% in Q2FY23 & witnessed a healthy growth of 40% on a YoY basis”. The company shows up on a screener of stocks with improving cash flow over the last two years.

  • Ashish Kacholia buys a 1% stake in Ador Welding during Q2FY23, now holds 4.2% in the company.

  • Indian rupee rises to 81.39 from Monday’s close of 81.91 against the US dollar in early trade today.

  • Birla Corp's Managing Director and Chief Executive Officer Arvind Pathak resigns due to personal reasons. His resignation will be effective from December 31, 2022.

  • Bosch’s Q2FY23 net profit rises marginally by 0.3% YoY to Rs 373.6 crore with revenue increasing 25.5% YoY. Expenses remain high on high raw material costs with a 35.8% YoY increase. Soumitra Bhattacharya, Managing Director of the company, says, “Although supplies in semiconductor eased out, the supply chain ecosystem remains fragile. Despite these uncertainties, including rising input costs, we expect to build on the strong performance of this quarter.”

Riding High:

Largecap and midcap gainers today include PI Industries Ltd. (3,623.70, 9.90%), Union Bank of India (64.05, 9.39%) and Bank of India (76.95, 8.92%).

Downers:

Largecap and midcap losers today include Dr. Lal Pathlabs Ltd. (2,405.80, -8.36%), MRF Ltd. (87,017.45, -8.31%) and Jubilant Foodworks Ltd. (566.45, -7.55%).

Movers and Shakers

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

Top high volume gainers on BSE included PI Industries Ltd. (3,623.70, 9.90%), Union Bank of India (64.05, 9.39%) and Punjab National Bank (44.95, 7.41%).

Top high volume losers on BSE were Privi Speciality Chemicals Ltd. (1,199.30, -8.45%), Dr. Lal Pathlabs Ltd. (2,405.80, -8.36%) and MRF Ltd. (87,017.45, -8.31%).

3M India Ltd. (23,483.95, 4.84%) was trading at 12.8 times of weekly average. Cera Sanitaryware Ltd. (5,256.00, -4.13%) and Ceat Ltd. (1,706.05, 5.53%) were trading with volumes 12.5 and 11.0 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

35 stocks overperformed with 52-week highs, while 3 stocks tanked below their 52-week lows.

Stocks touching their year highs included - Bank of Baroda (166.30, 5.02%), Bank of India (76.95, 8.92%) and Bank of Maharashtra (24.20, 3.86%).

Stocks making new 52 weeks lows included - Divi's Laboratories Ltd. (3,298.75, -3.39%) and Indigo Paints Ltd. (1,430.95, -4.13%).

22 stocks climbed above their 200 day SMA including Vinati Organics Ltd. (2,077.85, 4.87%) and Au Small Finance Bank Ltd. (642.55, 4.25%). 19 stocks slipped below their 200 SMA including Dr. Lal Pathlabs Ltd. (2,405.80, -8.36%) and Jubilant Foodworks Ltd. (566.45, -7.55%).

 
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The Baseline
07 Nov 2022
Five analyst stock picks with over 10% revenue and profit growth in Q2 results
By Abhiraj Panchal

This week, we take a look at five analyst stock picks with over 10% revenue and profit growth in Q2FY23

  1. Sun Pharmaceutical Industries: KRChoksey maintains its ‘Buy’ rating on this pharmaceutical giant with a target price of Rs 1,229– an upside of 19.9%. In Q2FY23, the company’s net profit grew 10.5% YoY to Rs 2,262.2 crore and revenue rose 13.8% YoY to Rs 10,952.3 crore. 

Analyst Kushal Shah believes that the company’s growth in Q2 was primarily driven by the global specialty business segment. In terms of geography, growth was led by the US, India, and Emerging market segments, he added. The analyst expects the company to continue to perform well in the US market on the back of new launches, better supply chain management, and market share gains. The firm’s product pipeline in the US remains healthy with 92 abbreviated new drug applications and 13 new drug applications awaiting approval from the US Food & Drug Administration, he added. 

In India, Shah considers Sun Pharma’s market share growth of 0.5% YoY to 8.6% in Q2 a key positive. He said, “In Indian formulations, the company continues to outperform average industry growth, which has increased the overall market share.” The analyst expects the firm’s revenue to grow at a CAGR of 13.8% over FY22-24. 

  1. Bharti Airtel: Prabhudas Lilladher maintains its ‘Buy’ rating on this telecom services company with a target price of Rs 1,058. This indicates an upside of 29.2%. In Q2FY23, the company’s net profit rose by 89.2% YoY to Rs 2,145.2 crore and revenue grew 21.9% YoY to Rs 34,526.8 crore.

Analyst Avishek Dutta attributes the firm’s robust profit growth to a strong performance by India Mobile, Africa Mobile, and enterprise business segments. The analyst said the India Mobile segment was led by healthy additions to its 4G customer base and net subscriptions. He added that the Africa Mobile segment’s growth was driven by a rise in average revenue per user (ARPU) and net customer additions. 

The management is focused on continued ARPU growth by improving customer stickiness across services. Dutta said he “remains structurally positive on the Indian telecom sector due to consolidation and likely regular tariff hikes”. The analyst expects the company’s net profit to grow at a CAGR of 86.5% over FY22-25. 

  1. Adani Ports & Special Economic Zone: ICICI Direct maintains a ‘Buy’ call on this transportation company with a target price of Rs 110. This indicates an upside of 17.3%. In Q2FY23, The company’s revenue grew by 38.9% YoY to Rs 5,648.9 crore and profit grew by 76.3% YoY to Rs 1,677.5 crore. 

Analysts Bharat Chhoda and Harshal Mehta say, “As Adani Ports & Special Economic Zone embarks on becoming India's largest integrated transport utility company by 2030, it is strengthening its capabilities in all logistics segments. It will offer end-to-end services to its customers, thereby capturing higher wallet share and also making the cargo sticky in nature.” They believe that the strong organic growth coupled with efficient assimilation of inorganic acquisition and integrating logistics operations, both vertically and horizontally, has built a strong moat around the business.

  1. Larsen & Toubro: HDFC Securities maintains a ‘Buy’ call on this construction and engineering company with a target price of Rs 2,345, indicating an upside of 17.1%. During Q2FY23, the company reported a profit growth of 22.5% YoY to Rs 2,229 crore and 23.2% YoY revenue growth to Rs 43,501.1 crore. Profit and revenue beat the brokerage's estimates by 21% and 7% respectively.

Analysts Parikshit D Kandpal, Manoj Rawat and Nikhil Kanodia say, “Tendering during the quarter was strong. However, awarding was muted with award to tender ratio at 34%.” The analysts remain optimistic about the company on the back of the record high order book of Rs 3.7 lakh crore, with a prospect pipeline of Rs 6.3 lakh crore for H2FY23, improving health and self-sustainability of the Hyderabad metro project, and revival in private capex.

  1. Equitas Small Finance Bank: Axis Direct maintains a ‘Buy’ call on this bank with a target price of Rs 60. This indicates an upside of 17.4%. In Q2FY23, the bank's profit grew by 182.6% YoY to Rs 116.4 crore and revenue grew by 15.7% YoY to Rs 1,147.4 crore. Net interest income grew by 26% YoY to Rs 610 crore (vs brokerage’s expectation of Rs 595 crore). 

The management has revised its growth guidance to 25% for FY23 (vs earlier guidance of 30%). Analysts Dnyanada Vaidya, Sumit Rathi and Bhavya Shah say, “This revision is primarily owing to the shift in the bank’s focus to scale up its business in the non-home (ex-Tamil Nadu) states.” The analysts believe that the bank’s cautious approach to MFI lending will lead to margin pressure. However, they added that the gradually improving opex ratios and normalising credit costs should partially offset the impact of margin compression. 

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

(You can find all analyst picks here)

 
Trendlyne Marketwatch
Trendlyne Marketwatch
07 Nov 2022
Market closes higher, Bikaji Foods' IPO gets bids for 26.7X of the total available shares

Trendlyne Analysis

Indian indices settled in the green after gyrating between losses and gains on a volatile day of trade. The Nifty 50 closed just above the 18,200 mark for the first time since January. European indices followed the global trend and traded higher than Friday’s levels. Major Asian indices closed in the green, in line with the US indices which closed higher on a volatile day of trade on Friday. US stocks rose after the US jobs report indicated a higher-than-expected unemployment rate, which could discourage the US Fed to continue with its jumbo-sized rate hikes. The tech-heavy NASDAQ 100 rose 1.6% while the Dow Jones closed 1.4% higher. Brent crude oil futures fell from its two-month high after China commits to the Zero-Covid policy, which hurts the crude oil demand.

Nifty Smallcap 100 and Nifty Midcap 100 closed in the green, following the benchmark index. Nifty Auto and Nifty Bank closed higher than Friday’s levels. Nifty IT closed in the green, taking cues from the NASDAQ 100, which closed 1.6% higher on Friday.

Nifty 50closed at 18,203.35 (86.2, 0.5%), BSE Sensexclosed at 61,185.15 (234.8, 0.4%) while the broader Nifty 500closed at 15,614.75 (83.9, 0.5%)

Market breadth is in the green. Of the 1,956 stocks traded today, 1,087 were on the uptrend, and 804 went down.

  • Britannia Industries sees a long buildup in its November 24 future series as its open interest rises 37.6% with a put-call ratio of 1.02.

  • Divi's Laboratoriesis falling as its Q2FY23 net profit falls 18.6% YoY to Rs 493.6 crore. Fall in revenue and rise in expenses caused the EBITDA margin to decline 7.7 percentage points to 33.5%. The company features on a screenerthat reflects stocks where mutual funds decreased their shareholding in the last quarter.

  • InterGlobe Aviation’s (Indigo) Q2FY23 net loss widens to Rs 1,583.3 crore against Rs 1,435.6 crore in Q2FY22 as expenses increased. Aircraft fuel expenses rose 3X YoY due to rising airline traffic. However, the company also records an increase in revenue by 2.2X YoY to Rs 12,497.6 crore in Q2. Indigo’s CEO Pieter Elbers says, "We witnessed good yields with strong demand across the network. However, fuel prices and exchange rates have impacted our financial performance."

  • Gautam Saraogi, CEO of Go Fashion, says that the company aims to acquire more than 25% market share in 3-4 years. He says that high ad spends caused the margin to fall in Q2FY23 to 29.8%, but maintains a margin guidance of 31-32% during FY23.

  • Global Health’s Rs 2,205.6 crore IPO gets bids for 9.6X of the available 4.7 crore shares on offer on the last day of bidding. The retail investor quota gets bids for 88% of the available 2.3 crore shares on offer.

  • Bikaji Foods' Rs 881.2 crore IPO gets bids for 26.7X of the available 2.06 crore shares on offer on the last day of bidding. The retail investor quota gets bids for 4.8X of the available 1.01 crore shares on offer.

  • Rajesh Exports is rising after being selected by the Centre for the Rs 18,100 crore production-linked incentive scheme to produce advanced chemistry cells. The company incorporates a wholly-owned subsidiary for manufacturing advanced chemistry cells.

  • ICICI Securities upgrades its rating on Akzo Nobel India to ‘Buy’ from ‘Add’ with a target price of Rs 2,800. This indicates an upside of 32.8%. The brokerage’s outlook on the company’s prospects improves on the back of market share gains and expansion of the distribution network despite inflationary pressures. It expects the company’s profit to grow at a CAGR of 20.2% over FY22-24.

  • Rail Vikas Nigam surges as it wins a contract worth Rs 137.6 crore from the Central Organisation of Railway Electrification. The order pertains to increasing the speed potential to 160 kmph on the Pradhankhanta-Bandhua section of the Dhanbad division under the East Central Railway.

  • Sanjiv Chadha, Managing Director and CEO of Bank of Baroda, expects credit cost to come down to 1-1.25%, compared to 1.25-1.5% earlier. He also expects the corporate segment's loans to grow.

  • Zydus Lifesciences is rising as it receives an establishment inspection report from the US Food & Drug Administration (USFDA) for its formulations facility in Moraiya, near Ahmedabad, Gujarat. The USFDA determined that the inspection classification of the facility is Voluntary Action Indicated. The inspection from July 26 to August 5 concluded with four observations.

  • Voltas plans to invest Rs 1,000 crore to expand its manufacturing capacity by adding a new plant near Chennai and a compressor plant in partnership with China's Highly International, according to reports.

  • Public sector banks like Bank of Baroda, Indian Bank, and Union Bank of India rise more than 4% in trade. The broader Nifty PSU Bank index trades above 3%.

  • Retail sales in the automotive industry rise 47.6% YoY to 20.9 lakh units in October, finds data from the Federation of Automotive Dealers' Association. Two-wheeler retail sales rise the most by 51.1% YoY. Retail sales of car makers are also up 40.5% YoY.

  • TVS Motor's Q2FY23 net profit rises 59.5% YoY to Rs 386.3 crore. Growth in revenue helps the EBITDA margin to increase 130 bps YoY to 12.7%. The company features on a screener reflecting stocks with high trailing twelve-month EPS growth.

  • Power Grid Corp of India is rising as its Q2FY23 net profit improves 8.1% YoY to Rs 3,650.2 crore. Its revenue grows by 8.6% YoY to Rs 11.150.6 crore. The company’s board approves the payment of an interim dividend of Rs 5 per share for FY23. It will be paid on November 30. The stock shows up on a screenerfor companies with increasing revenue sequentially for the past four quarters.

  • Indian rupee appreciates 33 paise to 82.11 from Friday's close of 82.44 against the US dollar in the early trade today.

  • Birlasoft's Chief Executive Officer (CEO) and Managing Director (MD) Dharmander Kapoor resigns due to personal reasons. His resignation will be effective from November 30. The company appoints Angan Guha in his stead for a period of three years, effective December 1.

  • Ashish Kacholia buys a 2.1% stake in Raghav Productivity Enhancers for Rs 19.5 crore in a bulk deal on Friday.

  • Britannia touches a 52-week high after reporting a 28% YoY increase in net profit to Rs 493.2 crore in Q2FY23. Managing Director Varun Berry says, "An increase in distribution reach helped deliver a robust topline growth of 22% YoY, aided by mid-single-digit volume growth, as we record our highest quarterly revenue." However, Marico’s Q2FY23 net profit fell 2.6% YoY to Rs 301 crore on rising input costs, the depreciating rupee and a higher tax rate.

  • State Bank of India’s Q2FY23 net profit surges 73.9% YoY to Rs 13,265 crore with net interest income rising 12.8%. The bank shows significant improvement in asset quality as gross NPAs fall 138 bps YoY to 3.5%. The bank revises its credit growth outlook to 14-16% in FY23 from the earlier 11-12%, as demand for corporate loans rises. It shows up on a screener of stocks with consistent high returns over the past five years.

Riding High:

Largecap and midcap gainers today include Bank of Baroda (158.25, 9.48%), Britannia Industries Ltd. (4,125.00, 8.43%) and Union Bank of India (58.80, 6.43%).

Downers:

Largecap and midcap losers today include Divi's Laboratories Ltd. (3,420.00, -8.71%), Marico Ltd. (504.90, -6.36%) and Vedanta Ltd. (306.35, -4.85%).

Movers and Shakers

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

Top high volume gainers on BSE included JM Financial Ltd. (77.20, 10.36%), Rail Vikas Nigam Ltd. (50.70, 10.10%) and Bank of Baroda (158.25, 9.48%).

Top high volume losers on BSE were Divi's Laboratories Ltd. (3,420.00, -8.71%), Marico Ltd. (504.90, -6.36%) and Alkyl Amines Chemicals Ltd. (2,952.65, -1.98%).

Bombay Burmah Trading Corporation Ltd. (925.00, 5.37%) was trading at 28.9 times of weekly average. Britannia Industries Ltd. (4,125.00, 8.43%) and Sundaram Clayton Ltd. (4,925.00, 3.00%) were trading with volumes 14.0 and 13.0 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

34 stocks hit their 52-week highs, while 5 stocks hit their 52-week lows.

Stocks touching their year highs included - Bank of Baroda (158.25, 9.48%), Bank of India (70.25, 4.93%) and Bank of Maharashtra (23.25, 2.20%).

Stocks making new 52 weeks lows included - GlaxoSmithKline Pharmaceuticals Ltd. (1,337.00, -0.65%) and Voltas Ltd. (834.55, -1.27%).

20 stocks climbed above their 200 day SMA including Finolex Industries Ltd. (156.85, 7.76%) and Jindal Stainless Ltd. (164.80, 7.12%). 9 stocks slipped below their 200 SMA including Marico Ltd. (504.90, -6.36%) and Vedanta Ltd. (306.35, -4.85%).

 
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The Baseline created a screener Results declared today
07 Nov 2022
Stocks whose results have been declared today
 
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The Baseline
05 Nov 2022
Midcap private banks celebrate a profit bonanza | stocks outperforming their sector and index post results
By Tejas MD

The month of October sparkled for Indian investors, with the Nifty 50 rising nearly 5% to cross the key level of 18,000 last week. It is now just 3% shy of a life-high. ICICI analysts predict that the Nifty will near 18,900 by December end. That would be quite a new year.

Global indices are also showing some spirit despite inflation fears. The US Dow Jones index posted a 14% rise – its best month in 46 years.

The US Federal Reserve delivered an expected 75 bps rate hike on Wednesday, taking the federal funds rate from 3.75% to 4%, its highest level in 15 years. But what investors were looking for from the Federal Reserve Chairman Jay Powell was any sign that the Central Bank plans to slow rate hikes going forward.

Fed watchers study Jay Powell with as much intensity as a mother may study a young child with a stomach ache. They parse everything from his expressions, his sighs, to his carefully chosen words. Before the meeting, Lloyd Blankfein, the former CEO of Goldman Sachs, joked that the Fed would be sitting with a thesaurus to find a word that meant both "pause" and "not pause".

Jay Powell managed to pull this off by disappointing everyone. He said that it was "very premature to think about pausing", but also said that the Fed "may slow the pace of increases."

Central Banks like the Fed and the RBI are caught between two fires: raise rates too fast and you trigger a recession, but go too slow and you worsen inflation. More rate hikes by the RBI could impact several sectors, and we look at one such sector this week. 

In this week’s Analyticks, 

  • Young rockets: Private Midcap banks see growth momentum in Q2, as they benefit from rate hikes
  • Screener: Stocks outperforming the Nifty50 and their sector post results, with rising operating profit margins and cash flows 

India's private mid-cap banks beat the index

The banking sector has outperformed the benchmark index comfortably in the past month, quarter, and half-year. Banks are taking advantage of the Reserve Bank of India (RBI) raising the repo rate. RBI has raised the key rate by 190 bps since May to 5.9%. And high inflation levels mean that more hikes are on the way. 

How does this help banks? Banks want the best of both worlds - they are quick to hike interest rates on loans (which adds to their income) but are slow to hike deposit rates (which they pay to account holders). So rate hikes by the RBI helps banks improve their net interest margin, since they benefit from the difference between the bank’s interest income and the interest they pay to their lenders. 

However, banks cannot benefit from this for too long, as they need to hike rates on deposits eventually. Higher interest rates also bring down loan growth, especially in retail sector lending, which is mainly consumption driven. Companies also postpone their spending plans when interest rates are high, as businesses have to shell out more money to service loans. 

So despite a sunny outlook by both analysts and banks, we are cautious. There are several factors that are potential roadblocks to rising net interest margins and strong loan growth. 

Mid-cap banks join the party, and outperform their bigger peers

Mid-cap banks’ share prices are sharply up on the back of improving net interest margins, strong loan growth, and asset quality. The banks in focus–IDFC First Bank, Federal Bank, Karur Vysya Bank, and RBL Bank–outperformed the Nifty 50 by at least 12%, with Karur Vysya Bank leading the pack. 

Over the past quarter, the stock performance of these banks has been even more impressive. 

The rise in share price has come with strong results over the past three quarters. Q2FY23 results did not disappoint either. The revenue and net income of these banks rose sharply.

Several tailwinds like rising repo rates and strong loan book growth from high retail consumption, have helped banks post strong Q2 results. 

Housing and vehicle loans were the star segments for banks in Q2. 

But is this demand sustainable?  Housing and vehicle loans may become less attractive with rising interest rates and analysts predicting more hikes in the coming months. In addition, according to CMIE data, new investment proposals by the private sector have been falling since Q1FY23. This could slow loan growth. 

As if on cue, RBL Bank’s business loans (12% of the loan mix) decreased by 21% YoY in Q2FY23 and IDFC First Bank’s corporate banking loan book is yet to reach pre-covid levels. However, IDFC First’s management has guided a 25% loan book growth in FY23. Federal Bank and RBL Bank expect their loan books to grow over 15%. 

The net interest margin (NIM) has been on the rise for all four over the past five quarters and accelerated in the last two-quarters, thanks to the rising repo rate. 

NIM of the banks in focus rose both YoY and QoQ in Q2FY23. IDFC Bank enjoys the highest NIM among the four at 5.98%. Its management is confident about maintaining NIM at 6% in FY23. 

Key ratios paint a bright picture

Banks provide several health-check metrics to assess asset quality, risk levels, etc. One key ratio is the gross non-performing assets (GNPA), which helps us understand the level of non-performing assets relative to total advances. This ratio has been on the decline for the past five quarters for the banks in focus, indicating a significant improvement in asset quality. 

All four banks have also made rising provisions in case of future losses.

Another positive factor for these banks is their improving CASA ratio. The CASA ratio is the ratio of deposits in current and saving accounts to total deposits. The higher the CASA ratio, the better. A higher percentage indicates a lower cost of funds because banks do not usually give any interest on current account deposits, and the interest on saving accounts tends to be very low. 

Current valuations look attractive, but there are potential roadblocks

Despite a sharp run-up in share prices, three out of the four banks in focus are in the PE buy zone. 

According to Trendlyne’s DVM classification, IDFC First Bank and Karur Vysya Bank are strong performers (high on DVM scores) and are also in the PE buy zone – meaning that their PE ratios now are lower than historical levels.

While the outlook is strong for these banks, investors should keep in mind key risks going forward. Rising interest rates may slow down loan growth. Loan growth is also dependent on consumption-driven retail loans (especially in the housing sector), and rising mortgage rates could hurt demand in this sector.

Corporate loan books could also get affected as private companies cut back on spending due to fears of an economic slowdown and rising interest rates. 

Screener: Stocks Outperforming the Nifty50 and their Sector, with rising Operating Profit Margin and Cash Flow

At a time of rising interest rates, having a healthy cash flow is important for companies to keep interest payments and debt low. This screener reflects stocks that are outperforming the Nifty 50 index and their sectors over the past month with a rise in operating profit margin and cash flow from annual operating activities. It also lists companies with TTM PE lower than their sector PE.

The screener results are dominated by the Banking and Finance sector with the Software & Services, General Industrials and Utilities sectors also turning up. Major stocks featured in the screener are Union Bank of India, Axis Bank, Persistent Systems, CG Power and Industrial Solutions, and Angel One.

Union Bank of India has the highest YoY growth of 126.6% in operating profit in Q2FY23. The company also saw a rise in annual cash flow of 77% in FY22. The stock outperformed the Nifty 50 index and the Banking and Finance sector over the past 90 days by 15.3% points and 13.5% points respectively. It also has a trailing twelve month PE of 6.1, which is lower than the sector average PE of 28.8.

Axis Bank has an 80.4% YoY growth of operating profit in Q2FY23. The bank has seen its annual cash from operating activity rise 122.7% in FY22. Over the past 90 days, the stock has outperformed the Nifty 50 index and the Banking and Finance sector by 18.3% points and 16.4% points respectively. It has a lower trailing twelve month PE than its sector of 15.2.

CG Power and Industrial Solutions has an operating profit growth of 51.7% YoY in Q2FY23. The company saw a rise in annual cash flow of 77% in FY22. Over the past 90 days, the stock has outperformed the Nifty 50 index and the General Industrials sector by 5% points and 4.2% points respectively. It also has a trailing twelve month PE of 41.1, which is lower than the sector average PE of 51.2.

You can find more screeners here.

 
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The Baseline
04 Nov 2022
Five Interesting Stocks Today
  1. Varun Beverages: This soft drink bottler’s stock has improved 10% in the past three days and touched a new 52-week high on Thursday. The rise in share price could be attributed to robust Q2FY23 results. A strong rise in net profit and operating profit margin despite an inflationary environment excited investors. With this rise in stock price, Varun Beverages features in a screener that lists companies whose share prices are trading above short-, medium-, and long-term moving averages. 

Revenue rose 33% YoY and net profit increased by 58.7% in Q2. While a 24% YoY volume growth led revenue growth, a 7% rise in realisations on the back of price hikes led to increased profits. In addition, its higher-margin energy drink, Sting, was the star product in Q2, driving both top line and margins higher. The management said Sting’s overall realisation was higher than the average realisation by 65%, helping the EBITDA margin rise 140 bps YoY to 22%. 

Brokerages like Axis Direct, ICICI Direct and Motilal Oswal raised their target prices after the Q2FY23 results announcement. Brokerages are positive about the company on the back of its expanding distribution network and product mix shift towards higher margin products like ‘Sting’. 

  1. Bandhan Bank: This bank’s stock has been falling for the past 90 days. Looking at the technicals, the stock fell 17% in the past three months and 10% on Monday alone after reporting a 74.6% QoQ dip in net profit to Rs 209.3 crore. It missed Trendlyne’s Forecaster estimates by 72%. Although the bank’s profitability is positive considering its reported a net loss of Rs 3,008.6 crore in Q2FY22, this has not enthused investors as many key metrics including asset quality have worsened. It shows up on a screener of bearish stocks with low Trendlyne Momentum scores and falling RoE for the past two years.

The bank’s fall in net profit can be attributed  to an increase in provisions which almost doubled to Rs 1,279 crore in Q2FY23. A rise in provisions indicates that the bank has a higher pool of stressed loans. It has had some slippages in loan books despite no restructuring in the last two quarters. Overall, slippages amounted to Rs 3,954 crore with the maximum slippage (Rs 3,624 crore) coming from the EEB (Emerging Entrepreneur Business) segment. Bad loan write-offs stood at Rs 3,539 crore.

On the positive side, Bandhan Bank’s advances grew 17.4% YoY to Rs 95,834 crore. Despite muted Q2 growth, analysts maintain a sturdy rating and expect the bank to perform well in H2FY23. Consensus estimates from analysts show 17 analysts recommending a ‘Buy’ on the stock with five recommending ‘Hold’ and one recommending ‘Sell’. Emkay Global expects the bank to deliver an RoE of 20-22% by FY24-25E. The management offered a positive outlook in their earnings call, expecting to report better earnings in Q3 and Q4 with improving asset quality.

  1. Supreme Industries: This plastic processing company’s stock rose over 8% since announcing its results on October 31. This upswing comes despite a 64.1% YoY drop in net profit, with its EBITDA margin contracting 905 bps YoY to 7.1% in Q2FY23. This led the company to miss Trendlyne’s Forecaster profit estimates by 48.9%. The drop in profitability is due to inventory losses as polymer prices fell.  

However, the stock surged as the street has a positive outlook on the company’s prospects. This mostly comes on the back of the management raising its volume growth guidance to 20% from 15% for FY23. The firm’s top-line growth was supported by a 9% volume growth in Q2 due to softening resin prices. Also, the management believes that the price of Polyvinyl Chloride (PVC) resin dropping by 38% since April augurs well for volume growth from H2FY23. PVC-based products contributed around 80% of the firm’s sales volume in Q2. The company, while increasing its volume growth guidance, has lowered its operating margin guidance to 12-12.5% from 15% for FY23.

For H2FY23, the management expects robust demand for its piping products on recovery in rural demand and declining commodity and polymer prices. The stock shows up on the screener for companies that benefit from lower crude oil prices. According to ICICI Direct, the company’s piping segment’s volume will grow at a CAGR of 19% over FY22-24 on the back of a recovery in demand from the agriculture, housing, and infrastructure segments. Supreme Industries plans to incur a capex of Rs 700 crore in FY23, which will mostly be used to increase production capacity.

  1. FSN E-Commerce Ventures (Nykaa): This internet platform company posted a surge in its net profit, up  251.1% YoY to Rs 4.1 crore, and revenue grew 39% YoY to Rs 1,230.8 crore in Q2FY23, as a result of new launches and festive demand. But its revenue and profit missed Trendlyne’s Forecaster estimates by 0.3% and 30.5%, respectively. Nykaa’s gross merchandise value (GMV) also rose 45% YoY to Rs 2,345.7 crore during the quarter, with Fashion GMV contributing 26%.  

Falguni Nayar, Executive Chairperson, Managing Director, and CEO, said, "Consumer demand for premium beauty, personal care, and wellness is showing signs of buoyancy as we gear up for a promising H2FY23.”

However, the company has been underperforming ahead of the expiry of the one-year lock-in period for its pre-IPO shareholders on November 10. It hit a 52-week low in the past week due to a large sell-off, especially from foreign investors. 

On the bright side, several brokerages are optimistic about the company because of strong Q2 results. Foreign brokerage Jefferies said the company delivered better than estimates on the GMV, revenue, and EBITDA but maintains its ‘Buy’ rating with a target price of Rs 1,650 as it expects volatility ahead of lock-in expiry. 

  1. Triveni Turbines: Despite a fallout with its joint venture partners, the stock has managed to sail well, even as  markets turned volatile with rising inflation and recession fears. The stock has given decent returns as it shows up on a screener of stocks with consistently high returns over the last five years. The stock rose 20% in the last 30 days and nearly 46% in the past 90 days.

Triveni’s rise in share price comes as reports suggest that the company will cater to the entire 3-100 MW markets globally. The stock rose 5% in trade on October 21, after the news came to light. Currently, the company has a market share of more than 50% and the order book of the company stands at Rs 3,610 crore. With rising demand from international markets like Southeast Asia, Europe, West Asia and North America and the ongoing global energy crisis, energy transition through renewable sources and methods will be sped up which is an opportunity to grab.

The growth story does not stop here. The stock rose 2% on Wednesday after declaring its Q2FY23 results. It reports an increase in net profit by 21% QoQ to Rs 46.2 crore. On a YoY basis, this fell 73.4% because of an exceptional item gain in Q2FY22 (settlement amount from litigation between the company and its joint venture). Reports suggest that the management guides a 35% revenue growth for the next few years and aims to maintain the PBT above 20% to maintain high margins. Centrum Broking initiates coverage on the stock with a ‘Buy’ rating and expects a 14% CAGR growth on order inflows over FY22-25E. Triveni Turbines also shows up on a screener of stocks with improving book value per share for the last two years.

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

 
Trendlyne Marketwatch
Trendlyne Marketwatch
04 Nov 2022
Market closes higher, Fusion Microfinance's IPO gets bids for 2.95X of the total available shares

Trendlyne Analysis

Indian indices closed in the green after gyrating between gains and losses on a volatile day of trade. India’s October Services PMI rose to 55.1 compared to 54.3 in September on the back of strong domestic demand and fast-paced job growth. European indices traded higher than Thursday’s levels. Major Asian indices closed higher on speculations over lifting of Covid restrictions in China.

US indices fell on Thursday as investors assessed the US Fed’s Hawkish commentary while awaiting the US jobs report, scheduled to be released later today. The tech-heavy NASDAQ 100 fell 2% while the Dow Jones closed 0.5% lower. The Bank of England raised its key interest rate by 0.75% - its biggest rate hike in three decades to fight high inflation. Brent crude oil prices traded over 2% higher after falling by 1% on Thursday.

Nifty Smallcap 100 closed in the green, following the benchmark index. Nifty Media and Nifty Metal closed sharply higher than Thursday’s close. Nifty IT closed in the red, taking cues from the NASDAQ 100, which fell 2% on Thursday.

Nifty 50closed at 18,127.90 (75.2, 0.4%), BSE Sensexclosed at 60,950.36 (114.0, 0.2%) while the broader Nifty 500closed at 15,536.95 (52.3, 0.3%)

Market breadth is in the green. Of the 1,917 stocks traded today, 1,043 were on the uptick, and 824 were down.

  • Money Flow Index (MFI) indicates that stocks like Bank of India, Canara Bank, Syngene International, and Engineers Indiaare in the overbought zone.

  • State Bank of Indiaand Rail Vikas Nigamhit all-time highsof Rs 592 and Rs 46.5 respectively. Both stocks rise for five consecutive sessions.

  • Cipla is falling despite its Q2FY23 net profit rising 10.9% YoY to Rs 788.9 crore. Revenue grows by 5.6% YoY led by the pharmaceuticals segment rising 5.1% YoY. The stock makes it to the screener with companies that have low debt.

  • Global Health’s Rs 2,205.6 crore IPO gets bids for 49% of the available 4.7 crore shares on offer on the second day of bidding. The retail investor quota gets bids for 25% of the available 2.3 crore shares on offer.

  • Jute & Jute Products, Commodity Trading & Distribution, and Financial Institutions industries rise more than 10% over the past week.

  • Bikaji Foods' Rs 881.2 crore IPO gets bids for 1.5X of the available 2.06 crore shares on offer on the second day of bidding. The retail investor quota gets bids for 2.3X of the available 1.01 crore shares on offer.

  • Fusion Microfinance's Rs 1,103.9 crore IPO gets bids for 2.95X of the available 2.1 crore shares on offer on the last day of bidding. The retail investor quota gets bids for 51% of the available 1.07 crore shares on offer.

  • Indian Energy Exchange’s total production volume falls 13% YoY to 7,972 million units due to the high volume base of October 2021. However, according to National Load Dispatch Center’s data, energy consumption is up 1% YoY to 115 billion units.

  • Axis Direct upgrades its rating on Cholamandalam Investment & Finance Co to ‘Buy’ from ‘Hold’ with a target price of Rs 845. This indicates an upside of 13%. The brokerage’s outlook toward the company’s prospects turns positive on the back of rising loan disbursements, a comfortable liquidity position, and a diversified portfolio mix. It expects the company’s net profit to grow at a CAGR of 25.9% over FY22-25.

  • Brent crude prices fall to $94.45 per barrel amid higher interest rate concerns from the Central Bank of the US and fresh Covid outbreaks in China.

  • Bharat Electronics signs a memorandum of understanding (MoU) with Motorola for cooperation in broadband and push-to-talk service project, according to reports. It will permit the companies to connect their teams with higher speed and efficiency by utilising Motorola WAVE PTX, a push-to-talk service.

  • JK Lakshmi Cement is rising even though its Q2FY23 net profit fell 27.6% YoY to Rs 61 crore due to high power and fuel costs. Its revenue improved 13.6% YoY to Rs 1,373.6 crore. The stock shows up on the screener for companies with a rising revenue sequentially for the past three quarters.

  • RateGain falls in trade as 28 lakh shares (2.6% equity) amounting to Rs 78.9 crore change hands, according to reports.

  • IT stocks like Persistent Systems, Infosys, Coforge, and Mphasis are falling in trade. The broader sectoral index Nifty ITis also trading in the red.

  • Vodafone Idea, Jamna Auto Industries, and Hindustan Petroleum Corp trade below their second support or S2 level as the market grows volatile.

  • Cochin Shipyard is rising as it bags an order worth Rs 1,000 crore to construct two commissioning service operation vessels from a European client. The project is expected to be completed in 35 months. The company makes it on a screener for stocks that gained more than 20% in one month.

  • Nomura upgrades its rating on Larsen & Toubro to ‘Buy’ with a target price of Rs 2,425. The brokerage says that the capex plans in India and the Middle East seem to be going strong for the company. However, its EBITDA margin guidance of 9.5% may be difficult to attain.

  • Kalpataru Power Transmission rises as it receives new orders worth Rs 3,567 crore on a consolidated basis for transmission and distribution, water, railway, pipeline and other overseas projects. Its subsidiary JMC Projects is also increasing after bagging orders worth Rs 2,277 crore in the water and building & factories segments.

  • Metal stocks like Vedanta, Jindal Steel & Power, and Hindalco Industries are rising in trade. All constituents of the broader BSE Metal index are trading in the green.

  • Amara Raja Batteries is rising as its Q2FY23 net profit rises 39.4% YoY to Rs 201.2 crore. The rise in revenue aids the company's EBITDA margin to grow by 140 bps YoY to 13.3%. The company features in a screener reflecting stocks with zero promoter pledge.

  • Indian rupee rises to 82.66 against the US dollar in the early trade today.

  • Vodafone Idea’s Q2FY23 net loss widens to Rs 7,592.5 crore against Rs 7,295.7 crore in Q2FY22. However, its revenue from services rose 2% QoQ as average revenue per unit (ARPU) grew 2.3% QoQ to Rs 131. Akshaya Moondra, CEO of the company, says, "We continue to remain engaged with our lenders and investors for further fundraising to make required investments for network expansion and 5G rollout."

  • Hero MotoCorp’s Q2FY23 net profit falls by 7.7% YoY to Rs 688.4 crore on the back of high input costs and weakening rural demand. However, revenue rises 7.3% YoY to Rs 9,158.2 crore. Niranjan Gupta, CEO of the company says, “The global macro headwinds may keep the playfield a bit uncertain, and navigating the same over the next few quarters will be important.” The stock shows up on a screener of companies with an improving book value per share over the last two years.

Riding High:

Largecap and midcap gainers today include Indian Overseas Bank (21.70, 11.86%), Adani Enterprises Ltd. (3,833.25, 6.76%) and The New India Assurance Company Ltd. (94.75, 6.76%).

Downers:

Largecap and midcap losers today include Aditya Birla Fashion and Retail Ltd. (330.65, -6.17%), Varun Beverages Ltd. (1,138.90, -4.21%) and Hindustan Petroleum Corporation Ltd. (203.60, -3.53%).

Volume Shockers

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

Top high volume gainers on BSE included Indian Overseas Bank (21.70, 11.86%), Amara Raja Batteries Ltd. (569.40, 9.55%) and Punjab & Sind Bank (18.65, 9.06%).

Top high volume losers on BSE were Ajanta Pharma Ltd. (1,256.20, -6.79%), Aditya Birla Fashion and Retail Ltd. (330.65, -6.17%) and Hindustan Petroleum Corporation Ltd. (203.60, -3.53%).

GMM Pfaudler Ltd. (1,975.60, 6.12%) was trading at 14.8 times of weekly average. The New India Assurance Company Ltd. (94.75, 6.76%) and Exide Industries Ltd. (175.55, 6.49%) were trading with volumes 14.8 and 13.8 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

18 stocks overperformed with 52-week highs, while 6 stocks hit their 52-week lows.

Stocks touching their year highs included - Bank of India (67.50, 5.47%), Bank of Maharashtra (22.75, 7.82%) and Bharat Heavy Electricals Ltd. (76.05, 0.93%).

Stocks making new 52 weeks lows included - GlaxoSmithKline Pharmaceuticals Ltd. (1,345.80, -1.13%) and TV18 Broadcast Ltd. (36.25, 4.77%).

12 stocks climbed above their 200 day SMA including Amara Raja Batteries Ltd. (569.40, 9.55%) and Vedanta Ltd. (321.95, 6.29%). 14 stocks slipped below their 200 SMA including Indigo Paints Ltd. (1,542.65, -5.34%) and Kansai Nerolac Paints Ltd. (448.00, -3.52%).

 
Trendlyne Marketwatch
Trendlyne Marketwatch
03 Nov 2022
Market closes lower, Global Health’s IPO gets bids for 26% of the total available shares

Trendlyne Analysis

Nifty 50 recovered over 90 points from the day’s low but still closed in the red on a volatile day of trade. European stocks followed the global trend and traded lower than Wednesday’s close ahead of Bank of England’s key policy meeting. Major Asian indices closed in the red, in line with the US indices, which closed sharply lower on Wednesday.

The US Federal Reserve delivered another 75 bps rate hike on Wednesday, taking the federal funds rate from 3.75% to 4% - its highest level in 15 years. Though the Fed hinted at slower rate hikes going forward, Fed Chairman Jerome Powell said that it was too soon to speculate on a pause in rate hikes. In reaction, the tech-heavy NASDAQ 100 fell 3.4% while the Dow Jones closed over 1.5% lower on a volatile day of trade.

Nifty Smallcap 100 and Nifty Midcap 100 closed in the green, despite the benchmark index closing in the red. Nifty Bank and Nifty Realtyclosed higher than Wednesday’s levels. Nifty IT closed in the red, taking cues from the NASDAQ 100, which closed over 3% lower on Wednesday.

Nifty 50closed at 18,048.05 (-34.8, -0.2%), BSE Sensexclosed at 60,836.41 (-69.7, -0.1%) while the broader Nifty 500closed at 15,481.50 (-16.1, -0.1%).

Market breadth is balanced. Of the 1,923 stocks traded today, 889 showed gains, and 976 showed losses.

  • Relative strength index (RSI) indicates that stocks like Godfrey Phillips India, Mazagon Dock Shipbuilders, Bank of India, and Sun Pharmaceutical Industries are in the overbought zone.

  • Housing Development Finance Corp's Q2FY23 net profit rises 17.8% YoY to Rs 4,454 crore. The monetary policy and interest rate hikes have aided the net interest income (NII) to grow 13% YoY to Rs 4,639 crore. The company features in a screenerfor stocks with an improving book value per share for the past two years.

  • Commodity Printing/Stationery, Biotechnology, and Non-Durable Household Productsindustries risemore than 3% in trade today.

  • Ed Yardeni of Yardeni Research expects further rate hikes by the US Federal Reserve to combat inflation. This comes after the Central Bank raised the policy rate by 75 bps yesterday.

  • Global Health’s Rs 2,205.6-crore IPO gets bids for 26% of the available 4.7 crore shares on offer on the first day of bidding. The retail investor quota gets bids for 12% of the available 2.3 crore shares on offer. The IPO consists of a fresh issue of Rs 500 crore and an offer for the sale of Rs 1,705.6 crore.

  • Bikaji Foods' Rs 881.2-crore IPO gets bids for 67% of the available 2.06-crore shares on offer on the first day of bidding. The retail investor quota gets bids for 1.1X of the available 1.01-crore shares on offer. The IPO consists entirely of an offer for sale of Rs 881.2 crore.

  • Cipla rises in trade as around 9.08 lakh shares (0.1% equity) amounting to Rs 106.1 crore change hands at Rs 1,168.8 per share, according to reports.

  • Alembic Pharmaceuticals rises with final approval from the US FDA for ketorolac tromethamine injections. It is used to treat acute pain in adults. According to IQVIA, the injection has an estimated market size of $ 59 million for 12 months ending June 2022.

  • Defence stocks like Bharat Electronics, Bharat Dynamics, and Data Patterns (India) are rising in trade. All constituents of the broader Defence industry trade in the green.

  • Fusion Microfinance's Rs 1,103.9-crore IPO gets bids for 29% of the available 2.1-crore shares on offer on the second day. The retail investor quota gets bids for 31% of the available 1.07-crore shares on offer.

  • PSU Banks like Punjab National Bank, Bank of Maharashtra, Central Bank of India, and UCO Bank are rising in trade. All constituents of the broader Nifty PSU Bank index are trading in the green.

  • Amid strong domestic demand and fast-paced job growth, India’s Services PMI rises to 55.1 in October, against 54.3 in September.

  • ICICI Securities upgrades its rating on Dalmia Bharat to ‘Buy’ from ‘Add’ and raises its target price to Rs 2,000 from Rs 1,750. This implies an upside of 25.4%. The brokerage turns positive on Dalmia Bharat despite the firm’s net profit falling 77.5% YoY in Q2FY23. It believes that the company's margin would improve in H2FY23 with the falling price of raw materials and fuel. The brokerage expects the company’s revenue to grow at a CAGR of 13.7% over FY22-25.

  • Triveni Turbine falls as its Q2FY23 net profit dips 73.4% YoY to Rs 46.2 crore. The net profit fell as a result of the high base in Q2FY22 due to the income from exceptional items. Its board of directors also seek shareholders' approval for a share buyback of Rs 190 crore at Rs 350 per share.

  • Goldman Sachs gives ‘Sell’ rating to Bajaj Finance, SBI Cards and Payment Services, and PNB Housing Finance as it believes that a higher loan-deposit ratio could impact NBFCs by tightening liquidity. ICICI Bank, Kotak Mahindra Bank, and State Bank of India are its top picks and gives them 'Buy' ratings.

  • The US FDA issued Form 483 to Lupin with five observations of the company. The inspection was conducted at Lupin’s Nagpur manufacturing unit. Reports also suggest that the US FDA issued a warning letter to Lupin on API manufacturing lapses at its Tarapur plant in Thane.

  • EIH is falling despite posting a net profit of Rs 24.6 crore in Q2FY23, compared to a loss of Rs 37.1 crore in Q2FY22. The company’s revenue surged 68.2% YoY to Rs 417 crore. The stock shows up on the screener listing companies with an improving cash flow and high durability.

  • Morgan Stanley maintains its ‘Overweight’ rating on Dalmia Bharat with a target price of Rs 1,850. The brokerage says that the company’s results were in line with the estimates, compared to its peers, but had lower volumes. This comes after the company's net profit fell 77.5% YoY to Rs 46 crore.

  • JK Paper is rising as its Q2FY23 net profit jumps 2.7X YoY to Rs 324.2 crore on the back of higher sales volume and realisations. Revenue jumps 74.1% YoY driven by growth in its paper and board segment. The stock shows up on a screener for companies with a high Piotroski score and high RoE and EPS growth.

  • Rakesh Jhunjhunwala's portfolio sees an addition of a 4.2% stake in Karur Vysya Bank, now holds 8.7% in the company.

  • Sunil Singhania and Ashish Kacholia buy 6.1% and 3.7% stakes respectively in Acrysil in Q2FY23. They now hold 12.3% and 7.5% stakes in the company.

  • Bikaji Foods raises Rs 262 crore from anchor investors ahead of its IPO by allotting 87.3 lakh equity shares at Rs 300 per share. Another IPO, Global Health, raises Rs 662 crore. The company allotted 1.9 crore equity shares for Rs 336 per share. Common investors include the Government of Singapore, HDFC MF, Aditya Birla Sun Life, and Max Life Insurance.

  • Relaxo Footwears' Q2FY23 net profit falls 67% YoY to Rs 22.4 crore with revenue decreasing 6.3%. The fall in revenue is because of reduced demand from the mass-selling segment. EBITDA margin dips 7.5 percentage points to 8.9% because of high raw material costs. Ramesh Kumar Dua, Managing Director of Relaxo says, "The consumers were facing inflationary pressures, which affected their affordability, moving them towards cheaper alternatives even at the cost of quality."

Riding High:

Largecap and midcap gainers today include Mahindra & Mahindra Financial Services Ltd. (219.90, 13.58%), Varun Beverages Ltd. (1,189.00, 5.45%) and Punjab National Bank (41.30, 5.22%).

Downers:

Largecap and midcap losers today include Tata Motors Limited (DVR) (229.80, -9.08%), Voltas Ltd. (861.25, -5.28%) and Relaxo Footwears Ltd. (932.25, -4.54%).

Volume Rockets

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

Top high volume gainers on BSE included Mahindra & Mahindra Financial Services Ltd. (219.90, 13.58%), Mas Financial Services Ltd. (904.20, 13.05%) and Indigo Paints Ltd. (1,629.70, 11.91%).

Top high volume losers on BSE were Aavas Financiers Ltd. (1,867.85, -4.74%), KSB Ltd. (1,915.70, -4.57%) and Relaxo Footwears Ltd. (932.25, -4.54%).

Alembic Pharmaceuticals Ltd. (658.15, 7.59%) was trading at 8.9 times of weekly average. Star Health and Allied Insurance Company Ltd. (711.60, -1.83%) and UCO Bank (14.45, 5.47%) were trading with volumes 8.0 and 8.0 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

18 stocks overperformed with 52-week highs, while 6 stocks hit their 52-week lows.

Stocks touching their year highs included - Bharat Forge Ltd. (857.20, 1.18%), Canara Bank (295.05, 1.25%) and Federal Bank Ltd. (137.25, 3.04%).

Stocks making new 52 weeks lows included - Motilal Oswal Financial Services Ltd. (682.00, -0.84%) and Relaxo Footwears Ltd. (932.25, -4.54%).

11 stocks climbed above their 200 day SMA including Indigo Paints Ltd. (1,629.70, 11.91%) and Redington Ltd. (157.20, 6.29%). 12 stocks slipped below their 200 SMA including Bata India Ltd. (1,832.10, -1.53%) and DCM Shriram Ltd. (1,024.05, -1.51%).

 
Trendlyne Marketwatch
Trendlyne Marketwatch
02 Nov 2022
Market closes lower, Fusion Microfinance's IPO gets bids for 7% of the total available shares

Trendlyne Analysis

Indian indices closed in the red with the Nifty 50 losing over 60 points and closing below the 18,100 mark. European stocks traded mixed as investors look ahead to the conclusion of a key US Federal Reserve policy-setting meeting today. Most major Asian indices closed higher, despite the US indices closing in the red on Tuesday. US stocks fell as stronger-than-expected US jobs report raised the possibility of the Federal Reserve continuing with its aggressive monetary policy tightening to combat elevated inflation. The tech-heavy NASDAQ 100 closed over 1% lower while the Dow Jones fell 0.2% on a volatile day of trade. Brent crude oil futures traded higher after rising over 2% on Tuesday after the industry report showed a surprise drop in US crude inventories.

Nifty Smallcap 100 and Nifty Midcap 100 closed flat, despite the benchmark index closing in the red. Nifty Bank and Nifty Realty closed lower than Tuesday’s levels. Nifty IT closed in the red, taking cues from the NASDAQ 100, which closed 1% lower on Tuesday.

Nifty 50closed at 18,072.10 (-73.3, -0.4%), BSE Sensexclosed at 60,906.09 (-215.3, -0.4%) while the broader Nifty 500closed at 15,486.70 (-50.7, -0.3%)

Market breadth is balanced. Of the 1,933 stocks traded today, 934 were gainers and 921 were losers.

  • LIC Housing Finance sees a short buildup in its November 24 future series as its open interest rises 100.6% with a put-call ratio of 0.55.

  • Bikaji Foods, a manufacturer of packaged snacks, opens for IPO subscription tomorrow. The price band for the issue is Rs 286-300 per share and is entirely an offer for sale for Rs 881.2 crore. Global Health, a multi-speciality healthcare provider, also opens for IPO subscription tomorrow. The price band for the issue is Rs 319-336 per share and is entirely an offer for sale for Rs 1,705.6 crore.

  • Telecom stocks like Bharti Airtel, Indus Towers, and Vodafone Ideaare falling in trade. The broader Telecom Servicessector drops more than 2%.

  • AIA Engineeringand Torrent Pharmaceuticals hit their 52-week highs of Rs 2,814 and Rs 1,708 respectively. AIA Engineering rises for three sessions, while Torrent Pharmaceuticals trades higher for four sessions.

  • Alembic Pharmaceuticals is rising as it receives final approval from the US Food & Drug Administration for its abbreviated new drug application for mesalamine extended-release capsules. The drug is used to treat inflammation in the digestive system in adults. It is estimated to have a market value of $133 million over the past year till June.

  • Fusion Microfinance's Rs 1,103.9-crore IPO gets bids for 7% of the available 2.1-crore shares on offer on the first day of bidding. The retail investor quota gets bids for 7% of the available 1.07-crore shares on offer. The offer consists of a fresh issue of Rs 600 crore and an offer for the sale of 1.36 crore shares.

  • Devyani International, Varroc Engineering, and Chambal Fertilisers & Chemicals trade below their third support or S3 level as market trades lower.

  • DCX Systems' Rs 500-crore IPO gets bids for 69.8X of the available 1.4-crore shares on offer on the last day of bidding. The retail investor quota gets bids for 61.8X of the available 25.3-lakh shares on offer.

  • Bofa upgrades its rating on FSN E-Commerce Ventures (Nykaa) to ‘Buy’ with a target price of Rs 1,555. The brokerage believes that the company is in a better position to sustain its revenue growth and margin improvement. This comes after the company's net profit rose 251.1% YoY to Rs 4.1 crore and revenue grew 39% YoY to Rs 1,230.8 crore in Q2FY23.

  • HDFC Securities upgrades its rating on Tata Power to ‘Add’ from ‘Reduce’ with a target price of Rs 243, indicating an upside of 6.1%. The brokerage’s outlook on the company’s prospects turns positive on the back of a growing order book and a decline in loss from the Mundra power plant. It expects the firm’s revenue to improve at a CAGR of 11.3% over FY22-25.

  • Distributors, Food & Drugs Retailing, and Jute & Jute Products industries rise more than 24% in trade in the past month.

  • NCC is rising as it wins two orders worth Rs 1,056 crore from state government agencies related to the water and environment division.

  • TVS Motor Co is falling despite its monthly sales in October rising by 2% YoY to 360,288 units, driven by a 7% YoY growth in domestic two-wheeler sales. Its scooter sales rise 20% YoY, whereas its motorcycle sales decline 4.5% YoY. Three-wheeler sales rise 16% YoY to 15,658 units.

  • Centre reduces the windfall tax on locally produced crude oil to Rs 9,500 per tonne from Rs 11,000 earlier. But it increases the export tax on diesel to Rs 13 per litre from Rs 12 and aviation turbine fuel (ATF) to Rs 5 per litre from Rs 3.5.

  • Fusion Microfinance raises Rs 331.2 crore from anchor investors ahead of its IPO, which opens up for subscription today. The company allotted 89.99 lakh equity shares at Rs 368 per share to anchor investors. The investors include Nomura Trust, ICICI Prudential, Edelweiss and others.

  • Infosys' board of directors to seek approval from shareholders for a share buyback of Rs 9,300 crore from November 3 to December 2. The IT company's board had previously announced the buyback at Rs 1,850 per share through the open market route.

  • BC Asia Investments VII sells a 0.54% stake (1.6 crore shares) in Axis Bank for Rs 1,486.8 crore in a bulk deal on Tuesday.

  • Kansai Nerolac Paints’ Q2FY23 net profit rises 23.4% YoY to Rs 113.7 crore with revenue improving 19% YoY. The management says that raw material prices have started to cool off. However, the company reports an increase in input costs by 11.2% YoY in Q2. Anuj Jain, Managing Director of Kansai Nerolac Paints, says, “Company has taken price increase in both decorative and industrial segments and continues to be in discussion with OEMs for further price increases.” The company shows up on a screener of stocks with improving book value for the last two years.

  • Karnataka Bank rises in trade as around 22.57 lakh shares (0.7% equity) amounting to Rs 25.13 crore change hands, according to reports.

  • Adani Ports & Special Economic Zone (APSEZ) is falling despite its Q2FY23 net profit rising 76.3% YoY to Rs 1,677.5 crore on the back of robust cargo volumes. Revenue improves 47.5% YoY, driven by a 30.5% growth in the port activities segment. Karan Adani, CEO and Managing Director of the company, said, “Extending this strong performance into October, APSEZ achieved 200 MMT of cargo throughput within seven months, another milestone.”

  • Tech Mahindra’s Q2FY23 net profit rises 13.6% QoQ to Rs 1,285.4 crore. Revenue grows by 3.3% QoQ on the back of communications, media, and entertainment (CME) segment. In terms of geography mix, the US market drives revenue growth for the company. Its attrition rate falls by 200 bps QoQ to 20%. The stock shows up on a screener for companies with revenue rising sequentially for the past eight quarters.

Riding High:

Largecap and midcap gainers today include Gland Pharma Ltd. (1,879.95, 5.25%), Cholamandalam Investment & Finance Company Ltd. (744.70, 4.96%) and Sun TV Network Ltd. (544.10, 4.11%).

Downers:

Largecap and midcap losers today include LIC Housing Finance Ltd. (366.65, -8.45%), Kansai Nerolac Paints Ltd. (467.10, -3.57%) and Bharti Airtel Ltd. (809.85, -3.08%).

Crowd Puller Stocks

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

Top high volume gainers on BSE included Mazagon Dock Shipbuilders Ltd. (724.60, 13.56%), Vakrangee Ltd. (34.00, 7.94%) and Redington Ltd. (147.90, 7.68%).

Top high volume losers on BSE were LIC Housing Finance Ltd. (366.65, -8.45%), Chambal Fertilisers & Chemicals Ltd. (308.05, -5.54%) and Devyani International Ltd. (187.30, -3.63%).

Westlife Development Ltd. (763.50, 2.89%) was trading at 19.6 times of weekly average. Bayer Cropscience Ltd. (4,584.80, -0.65%) and Kansai Nerolac Paints Ltd. (467.10, -3.57%) were trading with volumes 7.1 and 6.2 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

13 stocks took off, crossing 52-week highs,

Stocks touching their year highs included - AIA Engineering Ltd. (2,773.70, 2.74%), Bharat Forge Ltd. (847.20, -0.41%) and Coal India Ltd. (245.80, 0.06%).

19 stocks climbed above their 200 day SMA including Vakrangee Ltd. (34.00, 7.94%) and Redington Ltd. (147.90, 7.68%). 7 stocks slipped below their 200 SMA including LIC Housing Finance Ltd. (366.65, -8.45%) and Shree Cements Ltd. (22,327.20, -1.38%).