15 Sep 2022
Trendlyne Marketwatch
15 Sep 2022
Trendlyne Analysis
Indian indices closed in the red, with the volatility index, India VIX, rising close to 18.5%. The Nifty lost over 130 points and closed below the 17,900 mark. However, European indices followed the global trend and traded higher than Wednesday’s close. Most major Asian indices closed higher, tracking the US indices, which closed in the green on Wednesday. The US stocks inched up after posting their biggest one-day percentage loss on Tuesday since June 2020 on high possibility of another 75 basis point rate hike by the US Federal Reserve. The S&P 500 rose 0.3% while the tech-heavy NASDAQ 100 index closed 0.8% higher. Crude oil prices fall after rising over 1% on Wednesday amid supply concerns over the increasing likelihood of a US rail stoppage due to an ongoing labor dispute.
Nifty Midcap 100 and Nifty Smallcap 100 closed flat to higher, despite the benchmark index closing in the red. Nifty Bank and Nifty FMCG closed lower than Wednesday’s close. Nifty IT extended its losses and closed in the red, despite the NASDAQ 100 closing in the green on Wednesday.
Nifty 50closed at 17,872.30 (-131.5, -0.7%), BSE Sensexclosed at 59,934.01 (-413.0, -0.7%) while the broader Nifty 500closed at 15,573.05 (-57.7, -0.4%)
Market breadth is in the red. Of the 1,921 stocks traded today, 835 were on the uptick, and 1,047 were down.
Stocks like Tata Investment Corp, India Cements, Ambuja Cements, and Bajaj Holdings & Investmentare in the overbought zone, according to the relative strength index or RSI.
Maruti Suzuki is rising as Bank of America Securities upgrades its target price on the company to Rs 10,500 from Rs 9,500, according to reports. This indicates an upside of 10.5%. The brokerage believes the company can regain its market share on the back of new product launches. It also said, the positive response the new models received despite higher prices is encouraging.
Veranda Learning Solutions' board approves the raising of Rs 300 crore by a preferential offer of equity shares and convertible warrants. It will be a mix of preferential offer of 77.9 lakh equity shares to non-promoters and 20 lakh convertible warrants to promoters at an issue price of Rs 307 per share. Every warrant is convertible to one equity share within 18 months from the date of allotment.
Utilitiescompanies like NHPC, NTPC, Adani Power, and Power Grid Corp of Indiaare rising in trade. The broader sectoral index BSE Poweris also trading in the green.
Larsen & Toubro’s arm L&T Construction secures a repeat order from the Government of Odisha to construct a pressurized underground pipeline irrigation network system. The order’s value is between Rs 1,000-2,500 crore.
Axis Securities maintains its ‘Buy’ rating on Birla Corp with a target price of Rs 1,305. This implies an upside of 17%. The brokerage says the company’s future growth prospects look promising given rising demand, new capacity addition, increasing sales of premium products, and new product launches. It expects the company’s net profit to grow at a CAGR of 38.9% over FY22-24.
Ceat is one of the top gainers in trade today due to a better business outlook, according to reports. The stock gained more than 23% in the past month. The company expects the auto tyre industry to do well because of the increase in demand from OEMs. Also, with the easing of raw material cost pressures, the company is likely to report better margins from Q3FY23 onwards.
Harsha Engineers’ Rs 755-crore IPO gets bids for 10.3X of the available 1.6 crore shares on offer on the second day of bidding. The retail investor quota gets bids for 9.1X of the available 83.8 lakh shares on offer.
Indices like S&P BSE Industrials, S&P BSE Telecom, and Nifty PSU Bank trade above 9% over the past month
G R Infraprojects is falling after the company announces an offer for sale (OFS) which is open from September 15-16. The promoters will sell up to a 5.9% stake in the company through the OFS, with an additional 0.9% stake sale planned if there is sufficient demand. The first day will see bids only from non-retail investors and on the second day, all investors can bid for the shares. The floor price is set at Rs 1,260.
Astral is rising as it acquires an additional 15% stake in its arm Seal IT Services for a cash consideration of Rs 48 crore. With this acquisition, Astral’s stake in Seal IT Services increases to 95% from 80%.
#JustIn | Astral acquires 15% equity of Seal IT Services for ?48 crore
— CNBC-TV18 (@CNBCTV18Live) September 15, 2022
?? With this acquisition, Astral’s total equity stake in Seal IT Services has increased from 80% to 95% pic.twitter.com/ZZ9IbC58ccPVR falls by 5% in trade today after four investors sell a 7.7% stake through block deals in PVR, according to reports.
#MarketsWithBS | #PVR slips 5% after mega block deals; stock down 17% from 52-week high#Sensex#Niftyhttps://t.co/Ub7oZ1uoxj
— Business Standard (@bsindia) September 15, 2022ICICI Securities remains bullish on 3M India as it keeps its ‘Buy’ rating with a target price of Rs 26,500. This indicates an upside of 16.3%. The brokerage anticipates the company’s profit to increase on the back of its strong brand value, extensive distribution network, new product launches, and capacity expansion. It expects the company’s net profit to grow at a CAGR of 39.4% over FY22-24.
Media stocks like PVR, Inox Leisure, Zee Entertainment Enterprises, Network 18 Media and Investments, and Saregama India are falling in trade. The broader sectoral index Nifty Media is also trading in the red.
ICICI Bank hits a 52-week high of Rs 927.2 after CLSA rates ‘Buy’ and Morgan Stanley rates ‘Overweight’ on the stock. Morgan Stanley sees the bank's asset quality to remain strong, according to reports. It also shows up on the screener of companies with improving RoE over the last two years.
Vedanta is rising as it emerges as the highest bidder for the Ghogharpalli coal block located in Sundargarh, Odisha. The mine is estimated to have a total reserve of 1.3 billion tonnes and an annual capacity of 20 million tonnes.
Indian rupee falls 9 paise to 79.53 against the dollar in early trade today in anticipation of a rate hike by the US Federal Reserve
- Global rating agency Fitch lowers India’s GDP growth forecast to 7% in FY23 from its earlier estimate of 7.8%.
#JustIn | Fitch cuts India's GDP growth forecast for FY22/23 to 7% from 7.8% pic.twitter.com/r8RyYBVSge
— CNBC-TV18 (@CNBCTV18Live) September 15, 2022 Tamilnad Mercantile Bank’s shares list at a 3% discount to the issue price of Rs 510 on its debut on the bourses. The Rs 831.6-crore IPO got bids for 2.9 times the total shares on offer.
Promoter TVS Sundaram Fasteners sells a 1.18% stake (24.7 lakh shares) in Sundaram Fasteners for Rs 208.7 crore in a bulk deal. In another deal, ICICI Prudential Mutual Fund picks up a 0.66% stake (13.7 lakh shares) of Sundaram Fasteners for Rs 116.4 crore.
HFCL bags two orders from Bharat Sanchar Nigam Limited (BSNL) and RailTel Corporation of India. The order from BSNL is worth Rs 341.26 crore for the supply of equipment and services for broadband network gateway project on a turnkey basis. The order from RailTel Corp is worth Rs 106.55 crore majorly to set up Video Surveillance Systems at 180 railway stations on behalf of Indian Railways.
Riding High:
Largecap and midcap gainers today include MRF Ltd. (92,868.45, 7.90%), Adani Enterprises Ltd. (3,748.70, 4.94%) and NHPC Ltd. (38.70, 4.45%).
Downers:
Largecap and midcap losers today include PB Fintech Ltd. (519.65, -4.94%), Hindalco Industries Ltd. (424.40, -3.98%) and Laurus Labs Ltd. (530.75, -3.22%).
Volume Rockets
28 stocks in BSE 500 are trading on high volumes today.
Top high volume gainers on BSE included Ceat Ltd. (1,661.60, 20.00%), Welspun Corp Ltd. (263.75, 8.34%) and MRF Ltd. (92,868.45, 7.90%).
Top high volume losers on BSE were PVR Ltd. (1,845.50, -4.35%), Phoenix Mills Ltd. (1,377.55, -2.66%) and G R Infraprojects Ltd. (1,343.15, -2.28%).
Mahindra CIE Automotive Ltd. (289.95, 3.68%) was trading at 15.3 times of weekly average. Poly Medicure Ltd. (910.85, 2.76%) and EID Parry (India) Ltd. (595.35, 5.32%) were trading with volumes 10.5 and 9.6 times weekly average respectively on BSE at the time of posting this article.
BSE 500: highs, lows and moving averages
38 stocks hit their 52-week highs, while 2 stocks were underachievers and hit their 52-week lows.
Stocks touching their year highs included - Adani Ports & Special Economic Zone Ltd. (968.55, 2.18%), Adani Transmission Ltd. (4,105.40, 3.20%) and Allcargo Logistics Ltd. (424.45, -3.09%).
Stocks making new 52 weeks lows included - Alembic Pharmaceuticals Ltd. (623.05, -0.61%) and Sanofi India Ltd. (6,042.10, -0.43%).
13 stocks climbed above their 200 day SMA including JM Financial Ltd. (67.90, 4.78%) and Bombay Burmah Trading Corporation Ltd. (1,008.15, 4.17%). 8 stocks slipped below their 200 SMA including Laurus Labs Ltd. (530.75, -3.22%) and Polyplex Corporation Ltd. (2,071.20, -2.61%).
Trendlyne Marketwatch
14 Sep 2022
Trendlyne Analysis
Nifty 50 recovered from the day’s low but closed in the red, with the volatility index, India VIX, rising over 18%. India’s Wholesale Price Index (WPI) inflation fell for the third consecutive month in August to 12.4% compared to 13.9% in July. European indices took cues from the global markets and traded lower than Tuesday’s close. Asian indices closed lower, following the US indices, which closed deep in the red on Tuesday. US indices closed sharply lower, snapping their four-day winning streak, and posted their biggest one-day percentage loss since June 2020 after US CPI rose 8.3% in August, topping expectations. Analysts now expect another 75 bps federal funds rate hike at the next monetary policy scheduled later this month. The tech-heavy index, NASDAQ 100 plunged 5.5%, while the Dow Jones closed 3.9% lower. Brent crude oil futures traded flat after falling over 1% on a volatile day of trade on Tuesday.
Nifty Midcap 100 closed in the red, following the benchmark index. Nifty Pharma and Nifty Auto closed lower than Tuesday’s levels. Nifty IT closed deep in the red, taking cues from the NASDAQ 100, which fell over 5% on Tuesday.
Nifty 50closed at 18,000.65 (-69.4, -0.4%), BSE Sensexclosed at 60,346.97 (-224.1, -0.4%) while the broader Nifty 500closed at 15,626.80 (-43.1, -0.3%)
Market breadth is in the red. Of the 1,925 stocks traded today, 794 were gainers and 1,088 were losers.
India Cementssees a long build-up in its September 29 future series as its open interest rises 10.1% with put to call ratio of 0.77.
Sanofi India and Alembic Pharmaceuticals hit their 52-week lows of Rs 6,050 and Rs 625, respectively. Both stocks fall for three consecutive sessions.
State Bank of India (SBI) crosses the market cap of 5 lakh crore and hits an all-time high of Rs 574.8. Analysts suggest holding the stock as they see a ‘flag pattern’ breakout, according to reports. Flag pattern indicates that the stock will continue to remain in its previous trend. The stock also shows up on a screener with companies giving consistent returns over the past five years.
ICICI Securities maintains 'Buy' rating on Apollo Tyres with a target price of Rs 329, indicating an upside of 17.5%. The brokerage believes that disciplined pricing strategy, recovering demand and controlled capex to bode well for the company to generate a steady free cash flow. It expects the company's net profit to grow at a CAGR of 30.94% over FY22-24.
Harsha Engineers’ Rs 755-crore IPO gets bids for 2.9X of the available 1.6 crore shares on offer on the first day of bidding. The retail investor quota gets bids for 3.2X of the available 83.8 lakh shares on offer. The IPO consists of a fresh issue of Rs 455 crore and an offer for sale for Rs 300 crore.
PSU Banks like Bank of Maharashtra, Central Bank of India, Canara Bank, State Bank of India, and Bank of Baroda are rising in trade. The broader sectoral index Nifty PSU Bank is also trading in the green.
- Goldman Sachs downgrades its ratings on Infosys, Tata Consultancy Services and Tech Mahindra to ‘Sell’. The brokerage cuts the EPS forecasts for the companies for FY23-26E by 4-6%. However, it upgrades its rating on Wipro to ‘Buy’.
#BrokerageRadar | Goldman Sachs on IT sector: Downgrades Tech Mahindra to Sell; Upgrades Wipro to Buy@tech_mahindra@wipro#StockMarket#StocksToWatchpic.twitter.com/PJUNU0sfWF
— ET NOW (@ETNOWlive) September 14, 2022 Commodity Printing/Stationery, Surface Transportation, and Food & Drugs Retailing industries traded below 8% in the past month
Cement stocks likeAmbuja Cements, Shree Cements, ACC, Dalmia Bharat, among others, are rising in trade today.
Bajaj Holding Investments is rising as its board of directors approve an interim dividend of Rs 110 per equity share for FY23. Record date to determine eligible members is fixed for September 23.
India’s Wholesale Price Index (WPI) inflation falls for the third consecutive month in August to 12.41% compared to 13.93% in July.
August #WPI#inflation at 12.41% vs 13.93% (MoM)
— CNBC-TV18 (@CNBCTV18Live) September 14, 2022
Food inflation at 9.93% vs 9.41% (MoM)
Alert: August 2022 WPI inflation at an 11-month low of 12.41% pic.twitter.com/nrpLPgAebGAxis Direct continues to have a positive outlook for Sundaram Finance as it keeps its ‘Buy’ rating with a target price of Rs 2,490. This indicates an upside of 11%. The brokerage believes the company’s rising disbursements, improving asset quality, and well-diversified loan mix will aid in profit growth. It expects the company’s net profit to grow at a CAGR of 14.2% over FY22-24.
Tata Power's arm Tata Power Solar Systems wins order worth Rs 596 crore to set up a 125 MWp floating solar project for NHDC. NHDC is a joint venture between NHPC and the Government of Madhya Pradesh.
Fertiliser stocks like Coromandel International, Chambal Fertilisers & Chemicals, and Gujarat State Fertilizer & Chemicals, among others are falling in trade. The stocks fall as the Centre's Minister of State for Chemicals and Fertilizers Mansukh Mandaviya says retail prices of di-ammonium phosphate and other non-urea fertilisers will not be allowed to rise.
US CPI inflation falls slightly to 8.3% in August, compared to 8.5% in July. Core CPI rose 6.3% in August. US Indices closed lower amid concerns that the US Federal Reserve would continue to raise interest rates. It is expected that the rate hike could be by 75 bps.
US inflation rose more than expected in August, with the consumer price index increasing 8.3% over last year.
— GZERO Media (@gzeromedia) September 13, 2022
Analysts expect this will spark yet another interest rate hike from the Federal Reserve.#GraphicTruthhttps://t.co/MpTkhtVuccJSW Steel inks an agreement with Germany-based engineering company SMS group for carbon reduction projects. JSW Steel to invest Rs 10,000 crore to reduce carbon emissions. The collaboration will enable the companies to explore opportunities to reduce carbon emissions and produce green steel.
IT stocks like Infosys, Coforge, Tech Mahindra, Larsen & Toubro Infotech, and Tata Consultancy Services are falling in trade. The broader sectoral index Nifty IT is also trading in the red.
Harsha Engineers International raises Rs 225.74 crore from anchor investors ahead of its IPO, which opens for subscription today. The investors include American Funds Insurance, Goldman Sachs, Pinebridge Global Funds, Abu Dhabi Investment Authority, Whiteoak Capital, and SBI Mutual Fund.
KEC International secures new orders worth Rs 1,108 crore in business segments like railways and oil and gas pipelines. The order also includes a transmission and distribution project secured in India, the Middle East and Africa.
Riding High:
Largecap and midcap gainers today include Vedanta Ltd. (305.60, 10.11%), Bajaj Holdings & Investment Ltd. (7,144.35, 7.91%) and Ambuja Cements Ltd. (524.60, 7.83%).
Downers:
Largecap and midcap losers today include Infosys Ltd. (1,475.40, -4.50%), L&T Technology Services Ltd. (3,676.95, -4.26%) and Coforge Ltd. (3,471.00, -3.76%).
Movers and Shakers
28 stocks in BSE 500 are trading on high volumes today.
Top high volume gainers on BSE included Tata Investment Corporation Ltd. (2,621.30, 20.00%), Mahindra Logistics Ltd. (546.25, 11.08%) and Vedanta Ltd. (305.60, 10.11%).
Top high volume losers on BSE were Infosys Ltd. (1,475.40, -4.50%), Macrotech Developers Ltd. (1,061.40, -3.65%) and Tata Consultancy Services Ltd. (3,120.40, -3.37%).
Fortis Healthcare Ltd. (307.70, 5.34%) was trading at 16.0 times of weekly average. Indigo Paints Ltd. (1,563.95, 1.05%) and Aegis Logistics Ltd. (295.65, 8.75%) were trading with volumes 11.3 and 8.9 times weekly average respectively on BSE at the time of posting this article.
BSE 500: highs, lows and moving averages
30 stocks made 52-week highs, while 2 stocks were underachievers and hit their52-week lows.
Stocks touching their year highs included - ACC Ltd. (2,743.20, 6.62%), Adani Ports & Special Economic Zone Ltd. (947.85, -0.10%) and Allcargo Logistics Ltd. (438.00, 5.54%).
Stocks making new 52 weeks lows included - Alembic Pharmaceuticals Ltd. (626.85, -0.62%) and Sanofi India Ltd. (6,067.90, -0.16%).
9 stocks climbed above their 200 day SMA including Mahindra Logistics Ltd. (546.25, 11.08%) and Equitas Small Finance Bank Ltd. (51.05, 5.48%). 19 stocks slipped below their 200 SMA including TCNS Clothing Co. Ltd. (659.65, -3.13%) and Polyplex Corporation Ltd. (2,126.80, -2.69%).
14 Sep 2022
For investors, Return On Equity (ROE) is a useful financial ratio to check while hunting for quality stocks. It’s a fairly simple calculation - ROE is net profits divided by shareholder equity.
This ratio gives investors a good sense of the stock’s profitability - how efficient the company is at converting equity provided by shareholders into profit. An ROE below 10% is considered weak.
ROE however, is a ratio that varies greatly by sector, since some businesses, like say commodities, may build more assets than cash flows. This screener therefore, is a useful way to look at ROE, by identifying ROE outperformers at a sector level.
Nestle India has among the highest outperformance over its sector in annual ROE. The company has outperformed the FMCG sector by 70 percentage points in annual ROE. Nestle posted an annual net profit growth of 3% YoY and witnessed a rise of 23 bps YoY in annual EBITDA margin.
Next in the list is CG Power and Industries with an annual ROE of 90.9%, outperforming the general industrials sector by 64.4 percentage points. The company’s annual EBITDA margin rose by 5.3 percentage point YoY, helping ROE expand.
Info Edge (India) has the next highest annual ROE in its sector and outperforms the software & services sector by 42.1 percentage points. A growth in annual net profit of almost 9X YoY in FY22 with a 10 percentage point YoY rise in annual EBITDA margin aided the company to achieve a high annual ROE of 74%.
Page Industries outperforms the textiles, apparels & accessories sector by 23.5 percentage points in terms of annual ROE. The company achieved this high ROE as its annual net profit for FY22 grew 57.5% YoY with its annual EBITDA margin growing 150 bps YoY.
Trendlyne Marketwatch
13 Sep 2022
Trendlyne Analysis
Nifty 50 rose over 130 points and closed above the 18,050 mark, with the volatility index, India VIX, falling below 17.5%. European indices followed the global trend and extended their gains from Monday. India’s consumer price index or CPI rises to 7% in August, after falling to a five-month low in July. CPI print continues to stay above the central bank’s upper tolerance level of 6% for the eighth straight month. India’s industrial production or IIP rises 2.4% in July, missing analysts' expectations of 4.3%.
Asian indices closed in the green, tracking the US indices, which closed higher on Monday. US stocks rose ahead of the key US CPI print release scheduled later today. Brent crude oil futures traded marginally higher after rising about 7% in the last three trading sessions amid supply concerns.
Nifty Smallcap 100 and Nifty Midcap 100 closed in the green, following the benchmark index. Nifty Energy and Nifty FMCG closed higher than Monday’s close. Nifty IT closed flat despite the tech-heavy index, NASDAQ 100, rising 1.2% on Monday.
Nifty 50closed at 18,066.50 (130.2, 0.7%), BSE Sensexclosed at 60,571.08 (456.0, 0.8%) while the broader Nifty 500closed at 15,667.50 (90.1, 0.6%)
Market breadth is neutral. Of the 1,919 stocks traded today, 936 were on the uptrend, and 944 went down.
Stocks like Tata Investment Corp, Hindustan Aeronautics, Indian Railway Finance Corp, and Bajaj Holdings & Investmentare in the overbought zone, according to the relative strength index or RSI.
SRF rises as WTI crude and brent crude prices fall to $88.7 per barrel and $94.9 per barrel.
Harsha Engineers International, the iron & steel products manufacturer, opens for IPO subscription tomorrow. The price band for the issue is Rs 314-330 per share. The size of the issue is Rs 755 crore, comprising a fresh issue of Rs 455 crore and an offer for sale for Rs 300 crore. The risk factors for this company are its over-dependence on limited customers and outstanding litigations.
ICICI Securities maintains 'Buy' rating on DCB Bank with a target price of Rs 145. This indicates an upside of 38.1%. The brokerage believes that the bank's strong operational history, stable management team and improving credit growth revival will bode well for the stock. It estimates the bank's revenue to grow at a CAGR of 10.8% over FY22-24.
SRFand Ratnamani Metals & Tubeshit their 52-week highsof Rs 2,848.9 and Rs 1,968.2, respectively. SRF rises for two consecutive sessions, while Ratnamani Metals & Tubes rises in today's session.
- Centre may announce changes in windfall tax and export duties on fuel after international crude oil prices fall in the past 15 days.
#CNBCTV18Exclusive | Govt likely to announce a calibrated correction in #windfall gains #tax levies in next few days, sources to @TimsyJaipuria
— CNBC-TV18 (@CNBCTV18Live) September 13, 2022
International crude prices have shown marginal correction in last fortnight pic.twitter.com/rHkrx2q9No DB Realty rises and hits the upper circuit on reports of its merger with Adani Group’s real estate arm. The merger will lead to Adani Group infusing funds into DB Realty which may lead to a fresh issuance to new investors, according to reports.
Zydus Lifesciences receives final approval from the US Food and Drug Administration to market lenalidomide capsules. This drug is used to treat various types of cancers. The capsules had annual sales of $ 2.86 billion (approximately Rs 22,630 crore) in the US for the 12 months ended July 2022.
Healthcare Equipment & Supplies, Media, and Transportation sectors rise more than 12% in the past month.
Vedanta signs a joint venture agreement with Foxconn to set up a semiconductor plant in Ahemdabad, Gujarat, according to reports. The joint venture will invest Rs 1.54 lakh crore in the plant. Vedanta also obtains financial and nonfinancial subsidies on capex and cheap electricity from Gujarat for the plant.
Morgan Stanley expects India’s investment-to-GDP ratio to increase to 36% by FY27E. It says that reducing NPAs of banks and NBFCs, PLI schemes and improvement in government capex will boost India’s capex cycle in the coming years.
Morgan Stanley is expecting a capex boom in India over the next 4 years taking the investment-to-GDP ratio to 36% from 31% in FY21. Upasana Chachra of @MorganStanley tells @latha_venkatesh why they are so bullish pic.twitter.com/ZdLHUTQbwL
— CNBC-TV18 (@CNBCTV18News) September 12, 2022Motilal Oswal initiates coverage on Computer Age Management Services with a ‘Buy’ rating and a target price of Rs 3,000. This indicates an upside of 22%. The brokerage believes the company is well placed to benefit from the growing financialisation of savings in India, given its 70% market share in the mutual fund registrar and transfer agent industry. The brokerage expects the company’s net profit to grow at a CAGR of 15% over FY22-25.
India's Index of Industrial Production (IIP) growth falls to a four-month low at 2.4% in July compared to 12.7% in June, as the low base effect wanes. The manufacturing sector's growth slowed to 3.2% in July compared to 13% in June.
Dixon Technologies rises as its wholly owned subsidiary Padget Electronics receives approval from the Centre for disbursement of PLI (production-linked incentive). The subsidiary will receive an amount of Rs 53.2 crore as an incentive under the PLI scheme.
- Abrdn Plc, promoter of HDFC Life Insurance, may sell 2% stake in the company through a block deal, according to reports. Abrdn Plc currently holds 3.72% stake in HDFC Life, as on June 2022.
Abrdn Plc likely to sell 4.3 cr shares (2% equity) of HDFC Life via block deal, may sell HDFC Life shares in the range of Rs 564.10-578.55/sh
— CNBC-TV18 (@CNBCTV18Live) September 12, 2022
Alert: Abrdn was earlier known as Standard Life pic.twitter.com/N7EQJCCUJV IRB Infrastructure Developers is rising as its toll collections in August increase by 35% YoY to Rs 336 crore.
Indian rupee gains 25 paise to 79.28 against the dollar in early trade today.
Metal stocks like Vedanta, Jindal Steel & Power, National Aluminium among others are rising in trade. All constituents of the broader BSE Metal index are trading in the green.
India’s Consumer Price Index (CPI) stands at 7% in August against 6.7% in July. The rise in CPI is because of increase in prices of cereals, vegetables, and prepared meal snacks, among others. However, inflation in oils and fuel fell to 10.8% in August against 11.7% in July.
Month to month change (%) based on All India ???????????????????????????????? ???????????????????? ???????????????????? (????????????) and Consumer Food Price Index (CFPI) for the month of August 2022#KnowYourStats#DataForDevelopment#CPI#Retailinflationpic.twitter.com/UMvljMdv69
— Ministry of Statistics & Programme Implementation (@GoIStats) September 12, 2022General Atlantic Singapore sells 22 lakh shares (2.7% stake) in Krishna Institute of Medical Sciences (KIMS) for Rs 275 crore in a bulk deal. In another deal, ICICI Prudential Smallcap Fund and ICICI Prudential Long-Term Equity pick up 20 lakh shares (2.5% stake) in KIMS for Rs 250 crore.
Riding High:
Largecap and midcap gainers today include PB Fintech Ltd. (565.05, 11.88%), Relaxo Footwears Ltd. (1,086.20, 7.60%) and Zomato Ltd. (65.45, 4.64%).
Downers:
Largecap and midcap losers today include Astral Ltd. (2,445.80, -4.17%), Tube Investments of India Ltd. (2,649.65, -3.14%) and Dr. Lal Pathlabs Ltd. (2,434.65, -2.46%).
Movers and Shakers
38 stocks in BSE 500 are trading on high volumes today.
Top high volume gainers on BSE included KRBL Ltd. (365.05, 13.78%), Maharashtra Scooters Ltd. (5,130.30, 12.28%) and PB Fintech Ltd. (565.05, 11.88%).
Top high volume losers on BSE were Tata Communications Ltd. (1,236.05, -1.46%), Uflex Ltd. (772.70, -0.32%) and GlaxoSmithKline Pharmaceuticals Ltd. (1,417.70, -0.16%).
Relaxo Footwears Ltd. (1,086.20, 7.60%) was trading at 17.4 times of weekly average. Rallis India Ltd. (239.20, 4.91%) and Laxmi Organic Industries Ltd. (375.20, 7.92%) were trading with volumes 9.5 and 9.1 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 2 stocks tanked below their 52-week lows.
Stocks touching their year highs included - ACC Ltd. (2,572.80, 2.88%), Adani Ports & Special Economic Zone Ltd. (948.80, 1.10%) and Adani Transmission Ltd. (4,037.05, 0.78%).
Stocks making new 52 weeks lows included - Alembic Pharmaceuticals Ltd. (630.75, -0.83%) and Sanofi India Ltd. (6,077.70, -0.46%).
23 stocks climbed above their 200 day SMA including PNB Housing Finance Ltd. (402.50, 8.16%) and Rallis India Ltd. (239.20, 4.91%). 3 stocks slipped below their 200 SMA including TCNS Clothing Co. Ltd. (680.95, -2.17%) and Sobha Ltd. (707.70, -1.59%).
12 Sep 2022
This week we take a look at five analyst picks that are also trading in the PE Buy Zone. The PE buy zone is a useful valuation check - it sees whether the stock trades at its current PE the majority of the time.
If the current PE is unusually low compared to where the stock usually trades, the stock is in the PE buy zone. If the current PE is unusually high for the stock compared to its previous history, it is in the PE sell zone.
- Healthcare Global Enterprises: ICICI Securities maintains its ‘Buy’ rating on this healthcare facilities company with a target price of Rs 339, indicating an upside of 25%. This stock is currently trading in the PE Buy Zone.
Analysts Vinay Bafna and Rohan John are positive on the hospital chain as it focuses on its core competency area of oncology. They believe the firm’s “comfortable debt levels with limited capex plans provide room to explore additional growth opportunities and drive efficiency at the newer hospitals”. The analysts expect revenue from international tourists to increase, as it has hospitals across major cities in India. Revenue from international patients has already jumped to 1.5X of pre-covid levels, added the analysts.
Analysts Bafna and John like the company’s strategy to strengthen its foothold in the oncology hospital space by focusing on acquiring standalone hospitals from tier-2 cities, where the cost of acquisition will be cheaper. HealthCare Global expects its newly acquired hospitals to be operational in 18-24 months, they added. The analysts expect the company’s net profit to grow at a CAGR of 29.2% over FY22-24.
- Home First Finance Company India: Motilal Oswal initiates coverage on this housing finance company with a ‘Buy’ rating and a target price of Rs 1,020. This indicates an upside of 16.6%. The stock is currently trading in the PE Buy Zone.
Analysts Abhijit Tibrewal and Nitin Agarwal expect the company’s assets under management (AUM) to grow on the back of its rising disbursements, co-lending partnerships and diverse marketing channel. The analysts added, “Home First’s first mover advantage in technology along with its strategic digital partnerships has resulted in robust underwriting, quicker turnaround and superior asset quality”.
The analysts believe the company is well placed to mitigate a potential margin compression given its cost efficiencies. They also anticipate the asset quality to remain stable and healthy as its net non-performing assets stood at 1.8% in FY22. Analysts Tibrewal and Agarwal expect Home First Finance’s AUM and net profit to grow at a CAGR of 29% and 24%, respectively, over FY22-25.
- Narayana Hrudayalaya: Prabhudas Lilladher maintains a ‘Buy’ rating on this healthcare facilities company with a target price of Rs 810, indicating an upside of 14.8%. The stock is currently trading in the PE Buy Zone.
Narayana Hrudayalaya inked an agreement with Shiva and Shiva Orthopaedic Hospital to acquire its orthopedic and trauma hospital (Sparsh unit) in Bengaluru on a slump sale basis for Rs 280 crore. Param Desai and Sanketa Kohale said, “Though the acquisition looks expensive, it will offer the entire spectrum of services in Health City.” They further added, “Sparsh unit possesses 100 operational beds since a decade, which has generated Rs 49 crore and Rs 18 crore revenues in FY22 and FY23 (4 months) along with healthy profitability.”
The analysts believe that the company’s aggressive capex plans, which include a new Cayman unit, inorganic opportunities and greenfield/ brownfield expansion in India over the next three years will enhance growth visibility beyond FY24. Overall Desai and Kohale expect an EBITDA CAGR of 22% over FY22-24.
- Balkrishna Industries: Hem Securities initiates a ‘Buy’ call on this tyre manufacturer with a target price of Rs 2,293. This indicates an upside of 12.7%. The stock is currently trading in the PE Buy Zone.
The analysts note, “We believe Balkrishna Industries will continue to perform well over the next few quarters due to a robust demand environment.” They also believe that the company's export oriented business model, labor cost benefits and aggressive marketing may help them in outperforming its peers.
“With the help of capex, they are also increasing their capacity which will help them in gaining market share,” the analysts added. The tyre manufacturer is targeting doubling global market share to 10% vs. 5.5-6% currently, and its aggressive marketing and promotional activities are improving brand visibility.
- IIFL Wealth Management: BOB Capital Market maintains a ‘Buy’ call on this financial services company with a target price of Rs 2,277, indicating an upside of 31.8%. The stock is currently trading in the PE Buy Zone.
Mohit Mangal writes, “IIFL Wealth has successfully scaled its annual recurring revenue (ARR) business over the last three years and aims to have 80-85% of its topline from recurring streams,” and he believes this strategy will ensure a favourable asset mix of both debt and equity, and garner traction in the alternative investment space.
This financial services company plans to target Rs 5-25 crore clients due to low competition levels and robust growth in clientele. Mangal remains positive on the stock and concludes, “The company has maintained a niche position in the under-penetrated wealth management business, enjoys a track record of innovative wealth products and has a strong team leader-driven model that boasts of low attrition at both the client and team level.”
Note: These recommendations are from various analysts and are not recommendations by Trendlyne.
Trendlyne Marketwatch
12 Sep 2022
Trendlyne Analysis
Indian indices closed in the green, with the volatility index, India VIX, at around 18%. The Nifty 50 rose around 90 points and closed above the 17,900 mark. European stocks followed the global trend and traded higher than Friday's close. Asian indices closed higher, tracking the US indices, which also closed in the green on Friday. The S&P 500 and tech-heavy index, NASDAQ 100, snapped their three-week losing streak and closed higher last week. Investors look ahead to India’s consumer price index or CPI print release today after market hours. Other CPI data releases globally such as US CPI and UK CPI prints are scheduled for this week. Brent crude oil futures traded above $90 per barrel after rising over 4% on Friday.
Nifty Smallcap 100 and Nifty Midcap 100 closed in the green, following the benchmark index. Nifty Bank and Nifty Realty closed higher than Friday’s levels. Nifty IT closed in the green, tracking the NASDAQ 100, which rose over 2% higher on Friday.
Nifty 50closed at 17,931.60 (98.3, 0.6%), BSE Sensexclosed at 60,115.13 (322.0, 0.5%) while the broader Nifty 500closed at 15,573.80 (106.4, 0.7%)
Market breadth is in the green. Of the 1,960 stocks traded today, 1,163 were on the uptick, and 743 were down.
Stocks like Bharat Electronics, Vakrangee, Astral, and Indian Hotelsare in the overboughtzone, according to the Money Flow Index or MFI.
Goldman Sachs is overweight on ICICI Bank, State Bank of India, Bharti Airtel, Larsen & Toubro, and Axis Bank. The brokerage is underweight on Reliance Industries, HDFC Bank, Asian Paints, Hindustan Unilever, and Tata Consultancy Services.
#MarketsWithETNOW | @GoldmanSachs has come out with a list of top overweight and underweight stocks. Take a look here- #StockMarket#StocksToWatch#Stockspic.twitter.com/iVD9PpBMa6
— ET NOW (@ETNOWlive) September 12, 2022Axis Bank'scurrent PE TTM ratio at 15.2 is lower than its 3-year, 5-year and 10-year PE ratios.
Transportationstocks like Adani Ports, Delhivery, Allcargo Logisticsamong others are rising in trade. The broader transportation sector rises over 2% in today's trade.
Fine Organic Industriesand Oberoi Realtyhit their all-time highsof Rs 6,980 and Rs 1,067.8, respectively. Fine Organic Industries rises for five consecutive sessions, while Oberoi Realty trades higher for two sessions.
- According to reports, the Centre may retain a stake at IDBI Bank without board representation. Earlier, the Centre and LIC were to reduce 60% stake in IDBI Bank, with management control.
#Government to look at upside in IDBI Bank by retaining some residual stake, sources to @Sapna_CNBC
— CNBC-TV18 (@CNBCTV18Live) September 12, 2022
Alert: CNBC-TV18 reported on September 6 that #Govt & #LIC together may divest 60% in #IDBI with management control#IDBIBankpic.twitter.com/BU24QgxZLt ICICI Securities maintains its ‘Buy’ rating on Techno Electric & Engineering with a target price of Rs 471, indicating an upside of 64.1%. The brokerage believes the company’s profitability will improve given the opportunities in the smart metering segment, its robust balance sheet, and a strong pickup in the execution of orders. It expects the company’s revenue to grow at a CAGR of 22.2% over FY22-24.
Zydus Lifesciences is rising as its subsidiary Zydus Pharmaceuticals receives final approval and a 180 day exclusivity period from the US FDA to market cariprazine capsules. The capsules had annual sales of $ 2.39 billion (approximately Rs 19,006 crore) in the US for the 12 months ended July 2022.
Reliance Infrastructure files a Rs 13,400-crore arbitration claim against Adani Transmission at Mumbai Centre for International Arbitration. The company says the dispute is regarding breaches of the terms of the 2017 share purchase agreement for the sale of its Mumbai power business to Adani Transmission.
Advertising & Media, distributors, and commodity chemicals industries rise by more than 4% in trade today.
- Emerging markets in Africa are hit by the rising dollar, says Rakesh Sharma, Executive Director at Bajaj Auto. He says that Nigeria’s two-wheeler restrictions affected the company's exports. He also says that 50% of revenues came in from overseas markets.
#MarketsWithETNOW | "50% of revenues come from overseas market; Seeing recovery in the 3-wheeler sector," says Rakesh Sharma of @_bajaj_auto_ltd
— ET NOW (@ETNOWlive) September 12, 2022
#ElectricVehicles#StockMarket#StocksToWatchpic.twitter.com/0ibO8D31ZQ Mahindra Lifespace Developers touches its 52-week high of Rs 550.8. The rise comes as the company announces plans of acquiring land parcels for business expansion in Mumbai, Pune, and Bengaluru, according to reports.
Nomura initiates coverage on Medplus Health Services with a ‘Buy’ rating and a target price of Rs 925. The brokerage expects revenue CAGR of 26.9% over FY22-25, led by Medplus’ store expansion.
#MedplusHealth gets a ‘buy’ from #Nomura. https://t.co/fxpGUzX4M0
— BQ Prime (@bqprime) September 12, 2022Ajanta Pharma is falling as the US FDA issues form 483 with two observations after the US FDA inspected the company's formulation facility at Dahej. Form 483 is issued when the US FDA finds violations of USA's Food Drug and Cosmetics Act. The company is in the process of responding to the observations.
Axis Direct maintains its ‘Buy’ rating on Minda Corp with a target price of Rs 270. This indicates an upside of 16%. The brokerage expects the company’s profitability to improve on the back of increasing content per vehicle, new product launches, and a robust order book. It anticipates the company’s net profit to grow at a CAGR of 48.4% over FY22-24.
Engineers India is rising as it bags an EPC order from ONGC worth Rs 249 crore. The estimated completion period for the order is 33 months.
Anupam Rasyan is falling after the company discloses a fire incident at its Surat plant in Gujarat on Saturday. There were four fatalities and 20 people were injured.
Media stocks like Inox Leisure, PVR, Nazara Technologies, Network 18 Media & Investments, and Zee Entertainment Enterprises are rising in trade. The broader sectoral index Nifty Media is also trading in the green.
Gujarat Industries Power awards an EPC (engineering, procurement and construction) contract to KEC International worth Rs 244 crore. The project is to pool sub-stations of solar, wind and hybrid renewable energy parks of 2,375 MW in the Great Rann of Kutch, Gujarat.
Reliance Industries subsidiary Reliance Petroleum Retail will acquire Shubhalakshmi Polyesters (SPL) and Shubhlaxmi Polytex (SPTex) for Rs 1,592 crore. This will help Reliance in expanding its downstream polyester business. The deal is subject to approval from the Competition Commission of India (CCI) and lenders of SPL and SPTex.
Riding High:
Largecap and midcap gainers today include Hindustan Aeronautics Ltd. (2,614.00, 7.40%), Deepak Nitrite Ltd. (2,178.40, 6.54%) and ACC Ltd. (2,500.85, 5.72%).
Downers:
Largecap and midcap losers today include Coal India Ltd. (231.50, -2.57%), Bandhan Bank Ltd. (288.60, -1.67%) and Astral Ltd. (2,552.20, -1.62%).
Volume Shockers
33 stocks in BSE 500 are trading on high volumes today.
Top high volume gainers on BSE included KEC International Ltd. (443.30, 9.40%), Welspun India Ltd. (82.20, 7.73%) and Hindustan Aeronautics Ltd. (2,614.00, 7.40%).
Top high volume losers on BSE were Krishna Institute of Medical Sciences Ltd. (1,241.00, -3.17%), Chemplast Sanmar Ltd. (419.65, -3.08%) and Medplus Health Services Ltd. (720.40, -2.11%).
AstraZeneca Pharma India Ltd. (3,315.90, 7.01%) was trading at 13.1 times of weekly average. Anupam Rasayan India Ltd. (781.05, -0.70%) and KNR Constructions Ltd. (249.10, -1.99%) were trading with volumes 10.1 and 8.3 times weekly average respectively on BSE at the time of posting this article.
BSE 500: highs, lows and moving averages
26 stocks hit their 52-week highs, while 1 stock hit its 52-week lows.
Stocks touching their year highs included - Adani Ports & Special Economic Zone Ltd. (938.50, 3.49%), Apollo Tyres Ltd. (284.00, 3.80%) and Bharat Electronics Ltd. (338.55, 3.17%).
Stock making new 52 weeks lows included - Natco Pharma Ltd. (602.55, 0.11%).
24 stocks climbed above their 200 day SMA including KEC International Ltd. (443.30, 9.40%) and Avanti Feeds Ltd. (507.35, 6.74%). 3 stocks slipped below their 200 SMA including KPR Mill Ltd. (597.30, -0.76%) and Rain Industries Ltd. (185.35, -0.16%).
09 Sep 2022
It's difficult for Indian parents to point to Gautam Adani while telling their kids, "Don't you want to become like him?" Adani is after all, a college dropout. He was probably the kid adults called "a bad influence".
Now, to the frustration of Indian parents everywhere, Adani has become even richer, with Bloomberg placing him as the third wealthiest man in the world in 2022.
In this week's Analyticks:
- It's raining gold: Adani's wealth rose even as many billionaires became poorer
- Capex spending is on fire for Indian businesses: Companies are scaling up investment to meet domestic demand
In 2020, Gautam Adani was far from wearing the "richest three" crown. He had just $10 billion in net worth and was behind Mukesh Ambani in the billionaire race.
Come 2022, and how fortunes have changed. Adani has seen a jump in his net worth that beats any fairytale - it has multiplied 14X between Jan 2020 and now. He is now worth $143 billion, making him the third richest behind just Elon Musk and Jeff Bezos. Ambani is behind him, ranked tenth.
Much of this wealth has been driven by the rise of Adani stocks, which are at eye-watering, triple digit PE valuations. Adani Green Energy trades at 764 PE, while Adani Transmission trades at 458 PE.
Compare this to Reliance Industries, which trades at 26.3 PE. Despite the octopus nature of Bezos' Amazon's business, it trades at 116 PE, while Musk's Tesla trades at 99.1.
The rapid rise in Adani stocks over the last two years explains Gautam Adani's jump in the wealthiest list, even as other fortunes crumbled as markets turned volatile. Musk and Bezos, for example, saw their net worth decline as the value of Amazon and Tesla stocks fell in the year to date. Adani is also well ahead of other Indian billionaires.
The Adani group currently has a combined market cap of over $250 billion (approximately Rs 20 lakh crore). However, the challenge is that these businesses are "deeply over-leveraged" and loaded with low cash flow and high debt, as a recent CreditSights report put it, which means that Adani's net worth “is paper wealth, and tied to the valuations of his holdings in the Adani Group’s stocks". There's also the concern of the group's non-transparent shareholding, with anonymized shareholders like the APMS Investment Fund holding large stakes in Adani companies.
Rising debt in Adani companies is in contrast to Reliance's efforts to sharply cut debt levels. The crown is shiny for Adani, but high levels of debt are a shaky foundation to build a business, or net worth on.
Capex forecasts show aggressive spending plans in FY23
The outlook for India is brighter than the global economy, and that is showing up in the aggressive spending plans among Indian businesses. International as well as domestic analysts are bullish on spending, thanks to the healthy balance sheets of the Indian private sector, and rising domestic demand. Government policies have also been increasingly supportive of Indian industry, which is giving businesses confidence that the large investments they make will pay off.
As a result, the planned capex for the year across major industries is soaring. This screener (subscriber) looks at the estimated annual capex spending for India's top businesses in FY23. Industries such as refineries, oil production, electric utilities and telecom are all seeing big spending estimates.
This spending is partly driven by where India is on the development curve. As India's GDP ramps up, companies are building the "once in a country's history" essential infrastructure, that is needed to take the economy to the next level. This is like the infrastructure spending European and US economies saw in the 1950s and 1960s, and China saw in the 1970s as their GDP jumped. Large capex spends are being earmarked in critical sectors like metals, electric utilities, telecom and cement to meet the rising demands of Indian consumers.
For example, cement companies like Ultratech Cement and Grasim Industries have planned annual capex in the range of Rs. 50,000 crore. Sectors like auto are also seeing big outlays from companies like Tata Motors, as businesses focus on new models and the EV transition.
Companies are also moving up the value chain as their prospects improve. Rising global market share for India's chemical and fertilizer companies are pushing them towards higher-margin specialty compounds, and they are investing to build capacity here. The major companies in real estate and retail such as Avenue Supermarts, Prestige Estates, and Phoenix Mills, have also earmarked annual capex in the range of Rs. 20,000 crore.
The full screener on planned capex spends is here.
09 Sep 2022
- Ashok Leyland: This truck manufacturer’s stock touched its all-time high of Rs 169.4 on Tuesday and rose by 11.8% over the past month till Thursday. The surge in stock price comes on the back of a robust business outlook and a major deal win. This month, the company bagged orders worth $75 million to supply 1,400 buses in the UAE. This is the largest order for buses it has received in the UAE to date.
The company’s total wholesales for the month of August rose by 51% YoY, mainly driven by the surge in demand for trucks and buses. The management says the company’s diverse product portfolio mix and robust distribution network led to an increase in sales and market share. The firm’s domestic market share in trucks improved by 490 bps YoY to 31.1% in Q1. This healthy performance helped the stock make it to this screener which lists companies that outperformed their industry in the past 90 days.
The management expects the demand environment to improve due to increasing construction, infrastructure and mining activities. It also expects the re-opening of schools, colleges and offices to improve demand for buses. The light commercial vehicle segment’s sales volume will continue to grow on rising demand from the e-commerce and agriculture sectors. The street largely holds a bullish outlook for the stock, with a consensus recommendation of ‘Strong Buy’. According to KRChoksey, the company’s pipeline of new product launches will help increase its market share. The management anticipates better profitability in the coming quarters on softening commodity prices and a robust demand environment.
- Federal Bank:This bank's stock rose 9% in trade on Monday on speculative reports of the bank merging with another private bank. However, the bank denied the news and called it speculative. The stock tanked 8% after the bank issued this clarification. However, this did not affect the stock’s overall performance as it shows up in a screener where it is outperforming its industry by 14.2% in the past 90 days. It also shows up on the screener identifying stocks where FIIs increased their holding.
In a recent interview, the bank’s CEO Shyam Srinivasan said that rupee depreciation has helped improve the bank’s NRI (non-resident Indians) funds account. 21% of India’s remittances are now coming in through the bank. He also adds that earlier these funds were just lying with the bank, but now, the activity in these accounts has improved with investments into properties and other finances. He expects remittances to improve in the upcoming quarter.
Recently brokerage Nirmal Bang gave a ‘Buy’ rating for this stock as its retail loan AUM (assets under management) improve to 55% in Q1FY23. It also expects asset quality to improve. What impressed the brokerage was the corrective measures taken by the bank to disburse small ticket-sized corporate loans to counter risk. The bank also reported an improved net interest margin to 3.2% in Q1FY23. However, the brokerage believes that the bank should have a higher contingency buffer.Trendlyne’s consensus recommendation saw 21 brokerages recommending a ‘Buy’ on the stock in September.
- Brigade Enterprises: This realty stock hit its all-time high of Rs 575.4 on Wednesday and has been on an upswing since announcing its Q1FY23 results on August 2. The company’s net profit rose over 4X YoY to Rs 87.7 crore beating Trendlyne’s Forecaster estimates by 161%. Its sales bookings in the residential segment jumped 70% YoY in the same period. The realty firm benefitted from the resurgence in demand for housing, office spaces, and travel as it is present in the residential, commercial, retail, and hospitality segments.
The management expects a favourable demand environment to continue over the coming quarters, and to meet this demand it has added projects worth Rs 500 crore in H2CY22. It plans to add more projects in the remainder of FY23. The company has been funding these projects from the proceeds from its qualified institutional placement (QIP), through which it raised approx Rs 500 crore. This has helped it maintain strong cash flows and a healthy balance sheet. It shows up on this screener which lists companies whose cash flows from operations have been consistently improving over the past two years.
Going forward, the management anticipates leasing out 1.7 million square feet of vacant space by the end of FY23. It expects the growth in rental income to be driven by a rise in demand for office space and retail space. The recovery in rental income will help reduce the risk associated with the residential segment, it added. In the coming years, the company plans to focus on increasing its presence in newer markets, specifically in the residential and commercial segments.
- Angel One:The stock of this broking company jumped nearly 14% after it released its business update for August 2022. The company also outperformed the Nifty 500 index by roughly 15 percentage points in the past week.Angel One acquired 4.5 lakh new clients in the month gone by, up by over 28% on a MoM basis. This is especially noteworthy as the company’s client acquisition run rate had fallen to 3.4 lakh clients in June and July after peaking in May.
The average daily orders rose to over 36 lakh after continuously falling between February and July owing to tepid market activity and bearish sentiment. The Indian markets came alive in August backed by renewed investment fervor especially among foreign institutional investors. The FIIs pumped in roughly Rs 54,000 crore in the Indian equity markets in August, highest since December 2020. Higher market activity also caused Angel One’s average daily turnover to rise over 20% MoM across its product segments. However, the company ended up losing market share in the derivatives segment while it gained over 3% share in the commodities segment. Angel One now holds over 50% market share in the upcoming commodities segment.
The company now has a client base of over 11 crore and its management is confident that strong client acquisition growth will continue, backed by higher participation of millennials in the markets. Prabhakar Tiwari, Chief Growth Officer, Angel One believes that the total number of demat accounts in the country will cross the 20 crore mark over the next three to four years, doubling from current levels. The company is also in the process of deploying its ‘Super App’ to deliver a personalised investment experience. Angel One beat consensus estimates of analysts in Q1FY23 and is all set to clock over 20% topline growth in FY23.
- One97 Communications (Paytm): This internet company re-appointed Vijay Shekhar Sharma as its MD & CEO in the last week of August. According to reports, it looks like the CEO is on borrowed time to convert its books to black, given the stock lost 60% of its value since its IPO in November 2021 and investors were not happy.
However, recently Paytm has been in the news for entirely different reasons. The stock fell 2.5% on September 3 after the ED raided the premises of Paytm along with Razorpay and Cashfree, on suspicion of a loan racket run around by Chinese nationals. According to reports, ED seized some Rs 17 crore worth of funds in the form of merchant IDs and bank accounts. Although the company gave an official clarification saying that none of the funds frozen by ED belongs to Paytm or its group companies, the investors are yet to gain their trust back in the stock.
On September 6, the company published its monthly operational update. Given that the Reserve Bank of India (RBI) has banned Paytm from onboarding new customers, its monthly transacting users (MTU) are still up in August. However, this is just an 11.3% increase since the ban. The number of loans disbursed increased 246% YoY while gross merchandise value is up 72%. The management says that it is seeing a lot of upsell opportunities in this business. Paytm will have to focus on getting the maximum out of its existing users, given that it will take at least 3-5 months for the RBI to take a call on the imposed ban.
Trendlyne's analysts identify stocks that are seeing interesting price movement, analyst calls, or new developments. These are not buy recommendations.
Trendlyne Marketwatch
09 Sep 2022
Trendlyne Analysis
Nifty 50 closed higher, with the volatility index India VIX trading below 3%. The S&P 500 and Dow Jones closed higher on Thursday. Brent crude is trading at $90 mark amid the global recession fears.
Nifty Smallcap 100 closed flat, even as the benchmark index trades higher. Nifty Bankclosed higher than Thursday’s levels. Nifty IT closes higher, taking cues from the NASDAQ 100, which closed higher on Thursday.
Nifty 50closed at 17,829.30 (30.6, 0.2%), BSE Sensexclosed at 59,793.14 (104.9, 0.2%) while the broader Nifty 500closed at 15,462.80 (22.1, 0.1%)
Market breadth is in the red. Of the 1,915 stocks traded today, 765 showed gains, and 1,105 showed losses.
Sharekhan maintains its ‘Buy’ rating on Coal India with a target price of Rs 280, according to reports. The brokerage believes the stock is trading at an attractive valuation and expects profitability to improve on high international coal prices and e-auction premiums.
Stocks like Astral, India Cements, Ambuja Cements, and Schaeffler Indiaare in the overbought zone, according to the relative strength index or RSI.
Vinati Organicsand SKF Indiahit their 52-week highs of Rs 2,361 and Rs 5,029.9, respectively. Both stocks rise for three consecutive sessions.
- PI Industries in talks to buy out the promoter stake in Granules India, according to reports. Granules India's promoters have about 42% stake valued at Rs 3,200 crore.
#ETNOWExclusive | | PI Industries, Granules India in focus! PI Industries is in talks with Granules to buyout promoter stake, finds @Sharad9Dubey from sources. Listen in @PIIndustriesLtd@GranulesIndia#StockMarket#StocksToWatchpic.twitter.com/65h9LIIvMW
— ET NOW (@ETNOWlive) September 9, 2022 Photographic Products, Plastic Products, Capital Markets, and Medical Equipmentindustriesrise by more than 9% in trade during the week.
Kaveri Seed Company rises as Massachusetts Institute of Technology and 238 Plan Associates buy stake in the company in an open market transaction. The companies now hold a 5.13% stake in Kaveri Seed.
Multiplex stocks like PVR and Inox Leisure fall more than 5% in trade today
#CNBCTV18Market | Multiplex stocks extend losses, PVR & Inox slip more than 7% each from highs pic.twitter.com/7AziByyYUw
— CNBC-TV18 (@CNBCTV18Live) September 9, 2022Axis Direct maintains a ‘Buy’ rating on Mas Financial Services with a target price of Rs 840, indicating an upside of 14%. The brokerage remains optimistic about the company’s prospects due to its robust disbursement growth, improving net interest margin, and stable asset quality. It expects the company’s net profit to grow at a CAGR of 33.6% over FY22-24.
Lupin is rising as it launches a generic version of Suprep Bowel Prep Kit oral solution used in colonoscopy. The launch comes after it receives approval from the US FDA. The estimated annual sales of $ 202 million.
Aluminium companies like Hindalco Industries and National Aluminium Co are rising in trade due to an increase in prices of aluminium and other metals on the London Metal Exchange (LME).
Aluminium majors - Hindalco and National Aluminium jumped over 2% each to a high of Rs 430.6 and Rs 81.65, respectively, in Friday's intra-day trades. #StockMarket#MarketsWithBS#StocksInFocushttps://t.co/3RBWYV7WPk
— Business Standard (@bsindia) September 9, 2022Cement and construction stocks like Ambuja Cements, Shree Cements and Dalmia Bharat rise above 9% over the week, outperforming the sector.
The Society of Indian Automobile Manufacturers’ (SIAM) data shows August two-wheeler sales rising 16% YoY to 15.6 lakh units. Passenger car sales were up 21% YoY due to better supply of semiconductors and festive demand.
August auto sales at 22,75,407 units, according to @siamindia.
— BQ Prime (@bqprime) September 9, 2022
For the latest news & updates visit: https://t.co/gXeGqKQ77Ppic.twitter.com/FrCSm1BksYSamvardhana Motherson International is rising as it signs an agreement with Daimler India Commercial Vehicles’ (DICV) to acquire the assets of manufacturing and assembly operations at book value. The revenue generated from these assets is close to Rs 300 crore. The transaction is expected to complete by Q3FY23.
ICICI Securities downgrades its rating on Century Plyboards India to ‘Add’ from ‘Buy’, with a target price of Rs 750. This indicates an upside of 10.8%. The brokerage believes the company is currently overvalued but expects it to be a major benefactor of the rise in spending on home improvements post the pandemic. It estimates the company’s revenue to grow at a CAGR of 19.5% over FY22-24.
Mahindra & Mahindra launches the new XUV400 electric SUV on the eve of world EV day. The management is quite enthusiastic about this launch and plans to begin deliveries by the end of January 2023.
Rain Industries is falling as it temporarily closes an operating unit in Europe. The company is developing an energy-related contingency plan for its other European units anticipating a potential shortage of natural gas.
Zydus Lifesciences is rising as it receives the rights to market MonnoFerric injections in India and Nepal from Denmark’s Pharmacosmos A/S. The injection is used to treat iron deficiency in adults and is available in 30 countries.
Credit Suisse maintains its ‘Outperform’ rating on IndusInd Bank with a target price of Rs 1,280. The brokerage expects the bank's return on equity (RoE) to improve by 15% in FY23.
#BrokerageRadar | Credit Suisse on IndusInd Bank: Maintain Outperform; Management is confident in growth picking up, led by the retail@MyIndusIndBank#StockMarket#StocksToWatchpic.twitter.com/e5NoKr6BB2
— ET NOW (@ETNOWlive) September 9, 2022Reliance Power’s board approves the issue of equity shares/ convertible warrants to Varde Partners (a US investment firm) on the basis of preferential allotment. Varde Partners will buy a 15% stake for an amount of Rs 933 crore in the company.
PNC Infratech signs an agreement to build a four-lane highway for the National Highways Authority of India in the Sonauli-Gorakhpur section in Uttar Pradesh. The project cost is around Rs 1,458 crore and the company plans to complete the project in 24 months.
Riding High:
Largecap and midcap gainers today include Max Healthcare Institute Ltd. (413.30, 9.14%), Astral Ltd. (2,594.15, 4.97%) and Tube Investments of India Ltd. (2,745.20, 4.63%).
Downers:
Largecap and midcap losers today include Shriram Transport Finance Company Ltd. (1,324.10, -2.74%), Whirlpool of India Ltd. (1,754.30, -2.70%) and NHPC Ltd. (36.70, -2.52%).
Volume Shockers
25 stocks in BSE 500 are trading on high volumes today.
Top high volume gainers on BSE included Allcargo Logistics Ltd. (381.55, 11.13%), Max Healthcare Institute Ltd. (413.30, 9.14%) and Nesco Ltd. (652.50, 7.67%).
Top high volume losers on BSE were Rain Industries Ltd. (185.65, -7.73%), Whirlpool of India Ltd. (1,754.30, -2.70%) and Endurance Technologies Ltd. (1,457.00, -0.69%).
Gujarat State Petronet Ltd. (254.00, 6.05%) was trading at 18.5 times of weekly average. Godrej Industries Ltd. (486.80, 4.21%) and Hatsun Agro Products Ltd. (1,126.45, 7.43%) were trading with volumes 10.4 and 10.1 times weekly average respectively on BSE at the time of posting this article.
BSE 500: highs, lows and moving averages
36 stocks took off, crossing 52-week highs, while 1 stock tanked below its 52-week lows.
Stocks touching their year highs included - Adani Ports & Special Economic Zone Ltd. (909.05, 2.71%), Ambuja Cements Ltd. (453.95, -1.72%) and Apollo Tyres Ltd. (273.60, -1.51%).
Stock making new 52 weeks lows included - Natco Pharma Ltd. (601.90, -0.84%).
22 stocks climbed above their 200 day SMA including Hatsun Agro Products Ltd. (1,126.45, 7.43%) and Gujarat Pipavav Port Ltd. (89.90, 3.69%). 6 stocks slipped below their 200 SMA including Rain Industries Ltd. (185.65, -7.73%) and Godfrey Phillips India Ltd. (1,114.00, -1.72%).