29 Aug 2022
29 Aug 2022
29 Aug 2022
26 Aug 2022
- RBL Bank: This bank stock rose by 20% on Wednesday as it sold off its entire stake in Kilburn Engineering. The stake cut began on May 17 with RBL Bank holding a 19.6% stake in the company. It acquired shares in Kilburn on February 23, 2021, as a part of its debt restructuring plan which had a one-year lock-in period. With the lock-in period over, the bank went on a selling spree and held a 1.89% stake on Aug 19. The final announcement on Tuesday revealed that the bank has sold off the remaining stake and does not hold any equity shares in the company.
On Monday, the bank announced the issuance of debt securities worth Rs 3,000 crore on a private placement basis, meaning the offering of securities is for a certain set of people (less than 50 people) as it is not a public offering.
RBL Bank also shows up on the screener with changes in FII holdings in Q1FY23. RBL Bank’s FII holdings fell 2.1% QoQ. On Wednesday, College Retirement Equity Fund bought a 0.76% stake (45.8 lakh shares) in the bank worth Rs 49.9 crore. Reports suggest that the stock rose 5% on Thursday on short-term positive sentiment. The stock is also outperforming the Nifty 500 index by around 30% over the past month.
Emkay Global gives a ‘Buy’ call on the stock as it sees the bank’s capital to be at comfortable levels, according to reports. RBL Bank’s gross NPAs are falling since Q3FY22 and net interest income increased 6% YoY, indicating an improvement in the bank’s asset quality.
- Lupin: This pharma company had an eventful week as it received USFDA approval for its abbreviated new drug application, acquired two brands for Rs 207 crore, and entered into a licensing agreement for a biosimilar drug.
On Wednesday, Lupin received USFDA approval for its Formoterol Fumarate inhalation solution. This drug, which is used to treat patients with asthma, is the generic equivalent of Perforomist inhalation solution with an estimated annual sales of $282 million in the U.S. On Thursday, the drug maker entered into a licensing pact with Japan-based I'rom Group Co for a biosimilar product used in the treatment of osteoporosis in women. Under the terms of agreement, Lupin and the Japanese drug maker will conduct clinical trials, and market biosimilar Denosumab in Japan on an exclusive basis. Lupin will also receive multiple milestone payments. Currently, Denosumab has a market size of about $500 million in Japan.
This comes at a time when the company is restructuring its businesses in the US and is also diversifying away from the US. This, alongside the prevalent price erosion caused Lupin to post weak Q1FY23 results. Both revenue and net profit missed Trendlyne’s Forecaster estimates by a big margin in Q1. As a result, it shows up in a screener that lists companies with broker downgrades in price or rating in the past month. However, mutual funds increased their holdings in the company in the past month and promoters also raised their shareholding in the past quarter.
- New Delhi Television (NDTV):The stock of this media company rose 10% in just two trading sessions till Thursday after the news of stake acquisition by Adani Group on Tuesday. Adani Enterprises’ media arm, namely AMG Media Networks will acquire 29.18% stake in NDTV through its subsidiary Vishwapradhan Commercial (VCPL). Adani Group bought VCPL for Rs 114 crore and this company simplyexercised its pre-existing warrants to take over the complete holdings of the promoter entity RRPR Holdings.
The key promoters in this company are Radhika Roy and Prannoy Roy who together hold a 32.2% stake in NDTV. Meanwhile, Foreign institutional investors hold 14.2% share in the company. Now, AMG Media announcedan open offer to acquire 26% stake from the other public shareholders of NDTV owing to regulatory requirements. Will this action cede controlling stake to the Adani Group? Here’s the catch. Adani Group companies have set the offer price as Rs 294 apiece, which is at a discount of 28% to Thursday’s closing price. With no money left on the table and rather a clear loss, shareholders will likely not opt for this open offer. This also putsinto question the ability of Adani Group to acquire additional stake in NDTV, let alone control this media entity.
If we analyze the revenue growth of NDTV and market leaders likeZee Entertainment andSunTV for the past three years, it has been either flat or negative. Fall in advertising spends across sectors post the pandemic clearly impacted the growth trajectories of these companies. However, NDTV did see its profits jump nearly 8X between FY19 and FY22 backed by cost control measures. This does provide a compelling case for Adani Group to buy a material stake in this media house.
- Deepak Fertilisers & Petrochemicals Corp: This commodity chemical maker’s stock rose 5% and hit the upper circuit, touching an all-time high of Rs 977.1 on Tuesday. In fact, over the past month, the stock has risen 48.1%, mainly due to robust profit growth and a healthy business outlook. In Q1FY23, the company’s net profit rose nearly 3.4X YoY to Rs 433.9 crore and revenue grew 59.3% YoY, beating Trendlyne Forecaster’s revenue estimates by 5%. The company’s profitability has been improving on better operational efficiencies and diversified end-user segments. This has helped it show up on a screener which lists stocks that effectively use shareholder’s funds. Its return on equity has been improving over the past two years. The proportion of promoters’ shares that is pledged reduced to 27.7% from 90.6% QoQ.
The company manufactures industrial, agricultural and mining chemicals, which enables it to possess a diversified product portfolio. The management has a positive outlook on the mining, infrastructure, and power sectors, and expects demand from these sectors to fuel business growth in the coming quarters. It anticipates increased demand for mining chemicals such as technical ammonium nitrate (TAN) to drive profitability. To meet the expected rise in demand for mining chemicals, the management plans to add a capacity of 3.76 lakh million tonnes per annum by FY25.
Going forward, the management expects the demand and prices for nitric acid to remain strong in the coming quarters aided by diminishing availability of the product in China. It also expects to benefit from the China plus one policy as the shift in global supply chains towards India will continue to increase demand from its downstream customers.
- Kalyan Jewellers India: This jewellery company’s stock rose 15.1% over the past week on healthy earnings and a positive business outlook. It is expected to benefit from the surge in demand this festive season due to a growing shift in preference for organised retail in jewellery, according to IDBI Capital. In Q1FY23, the company was back in black on a YoY basis and revenues surged more than 2X YoY. It turned profitable on the back of robust growth in footfalls, store expansion in the non-South Indian market and increased studded jewellery sales. This helped the company beat Trendlyne Forecaster’s consensus profit estimates by 3.7%. The company shows up on a screener which lists stocks in the PE buy zone with a reasonable durability score and a rising momentum score.
Going forward, the management is focused on penetrating newer markets by increasing the number of stores outside of South India, its core market. They see considerable headroom to grow in the non-south regions where studded jewellery is preferred by customers. This bodes well for the company as studded jewellery has higher margins than gold jewellery. Revenues from the non-South Indian regions grew 145% YoY and revenue contribution increased to 35% in Q1. In addition, the management expects organised retail to have a 40% share in the entire jewellery market by 2025. To increase its market share and accelerate expansion, the company has adopted a franchise model. It plans to add 12-15 new showrooms in India annually over the coming years and will be adding 18 new stores in FY23.
Trendlyne's analysts identify stocks that are seeing interesting price movement, analyst calls, or new developments. These are not buy recommendations.
26 Aug 2022
The markets became more volatile this week. Despite this, inflows from foreign institutional investors continue to rise - in the last week, foreign investors bought over Rs 5,700.5 crore worth of Indian shares.
Consumer confidence is also improving, and Indian households are reporting an increase in spending. 'Outdoor businesses' are in particular, benefiting from this - after too many pandemic months sitting indoors and looking out of the window, Indians want to be outside. Traffic jams are back, shopping malls are packed, and its hard to get a hotel room anywhere.
In this week’s Analyticks,
- Outdoor sectors recover as restrictions disappear in Q1FY23
- Screener: Stocks outperforming their sector in Q1 growth, with high Piotroski score
Outdoor sectors are making a comeback
The Covid-19 pandemic in India hit some sectors harder than others. Some industries like pharma and healthcare services caught investor interest and emerged as stars, due to increased demand for their products and services. But outdoor industries like transport and hotels were impacted by lockdowns and movement restrictions, and the share prices of these companies reacted accordingly.
With the pandemic now in the rearview mirror, outdoor sectors like retailing, transportation, diversified consumer services, and hotels, restaurants, and tourism are seeing a comeback.
After the Q1FY23 results, outdoor sectors are outperforming the benchmark Nifty 50 index in the past month. This is because for the first time in two years, companies in these sectors had a fiscal quarter with no lockdown disruptions. This helped firms post strong YoY revenue and net profit growth. Revenues of these industries in focus at least doubled YoY in Q1FY23.
Hotels and airlines and leisure facilities’ average revenue, in particular, multiplied more than 3X as Covid restrictions were fully lifted. The leisure facilities industry saw the highest average revenue jump (283.6%) YoY in Q1FY23.
Leisure facilities industry outperforms Nifty 50 by over 46% in the past month
The overall consumer services sector outperformed the Nifty50 by 4% in the past month. This was helped by the outdoor leisure facilities industry, where share prices rose a staggering 55% on average in the past month (as of August 24). In fact this is the best performing industry in terms of % price change over this period. The companies here include waterpark amusement park chains like Wonderla Holidays andImagicaaworld Entertainment.
As life returned to normal with no disruptions, people began ‘revenge travel’, and many of these companies benefited from it. Their revenues grew exponentially YoY and losses turned into profits in Q1FY23.
Another factor that impressed investors was that these two amusement parks saw footfalls and revenue surpassing the pre-Covid level in Q1FY23.
Metro Brands and Campus Activewear jump, outperforming the footwear industry
Another industry affected by lockdowns was footwear. But as the pandemic waned, two big companies got listed on the bourses and are currently among the top four (in market capitalization) in the industry. While the Jhunjhunwala-backed Metro Brands was listed in December 2021, Campus Activewear was listed in April 2022.
Notably, both these companies’ stocks have outperformed their older peers Bata India and Relaxo Footwear by a huge margin in the past month. Store expansion and e-commerce sales growth remain key drivers for footwear companies as they focus on an omnichannel strategy. Metro Brands also posted its best quarter ever revenue-wise in Q1FY23 with a net addition of 20 new stores. Recently listed Campus Activewear’s volume rose over 2.5 times YoY in Q1FY23 to 5.6 million pairs – its highest ever volume in Q1.
Hotel companies back in black in Q1FY23
Among the industries in focus, hotels and airlines are the best performers in YoY revenue growth in Q1FY23. The top four listed hotel companies - Indian Hotels Company, EIH, Chalet Hotels, and Lemon Tree Hotels posted profits in Q1FY23, against losses in the same quarter the previous year.
EIH’s stock rose around 18% in the past month and outperformed its peers by a huge margin. Its revenue rose over three times YoY in Q1FY23 and crossed pre-Covid levels. According to the management, revenue per available room or RevPAR and occupancy in domestic hotels comfortably surpassed pre-covid levels in Q1FY23.
In the airline industry, InterGlobe Aviation (Indigo) managed to post strong revenue growth of 327.5% in Q1FY23. Jet Airways’ revenue fell 83% YoY in Q1 and SpiceJet is yet to announce the last two quarters’ results, citing a ransomware attack. Spicejet’s Q4FY22 revenue is scheduled to be announced on August 31.
Top performer Indigo’s load factor rose 310 bps to 79.6%, but it is still below pre-Covid levels of 89%. This is due to increased ticket prices on the back of soaring fuel costs. According to its management, Indigo’s international flight operations in Q1FY23 reached pre-Covid levels and it expects to grow in the coming months with the easing of international travel protocols.
Restaurant and department store companies beat Forecaster revenue estimates
The top three listed companies in the restaurants and the department stores industry beat Trendlyne Forecaster’s revenue estimates in Q1FY23.
In the restaurant industry, Westlife Development’s Q1 revenue rose over 2X and beat Trendlyne Forecaster’s estimates by over 12%. This surprise was due to same-store sales growth or SSSG of 97% YoY in Q1FY23, with the dine-in channel (58% of revenue) rising 14% from pre-Covid levels. All restaurants continued their growth momentum in terms of store additions, with Jubilant Foodworks at the forefront adding 230 new stores.
Trent leads the pack in department stores as it beat Forecaster consensus revenue estimates by over 20%. Its revenue jumped over 3.5 times YoY in Q1 on the back of robust growth in its Westside and Zudio brands, with Westside clocking a like-for-like or LFL growth of 24% in Q1FY23 vs Q1FY20. As a result, Trent outperformed its top peers and rose around 15% in the past month.
With the pandemic at bay, the outdoor sector could continue its growth momentum in Q2FY23 as several industries have surpassed pre-covid levels both in terms of revenue and volumes. However, another Covid wave or a weakening economy remain key risks.
Screener: Stocks with a high Piotroski score, which are outperforming their sector in net profit and revenue growth
Post the June quarter results, we take a look at stocks that delivered a strong performance in the quarter. This screenershows stocks in the Nifty 500 that outperformed their sectors in net profit and revenue growth in Q1FY23 with a high Piotroski score.
These 12 companies are not dominated by any one sector and include stocks from chemicals & petrochemicals, food, beverages & tobacco, and realty. Stocks in the screener include Hindustan Zinc, GAIL (India), United Spirits, and United Breweries.
Hindustan Zinc has the highest Piotroski score (9) among the 12 screener stocks, indicating high financial strength. It also beat the metals & mining sector in YoY net profit and revenue growth in Q1FY23. Its net profit grew 55.9% YoY compared to an average 21.1% fall in net profit for the sector.
Bharat Dynamics also has the highest Piotroski score. It beat the general industrials sector in YoY net profit growth by 147.5 percentage points, and revenue by almost 400 percentage points in Q1FY23.
GAIL (India) has a Piotroski score of 8. The company beat the utilities sector in YoY net profit growth by 29 percentage points and revenue growth by 60.5 percentage points in Q1FY23.
You can find more expert screeners here.
Trendlyne Marketwatch
26 Aug 2022
Trendlyne Analysis
Nifty 50 trades in the green, with the volatility index, India VIX, falling below 18.5%. European indices follow the global trend and open higher than Thursday. Major Asian indices trade in the green, led by Hong Kong's benchmark index Hang Seng. Chinese and Hong Kong stocks rise on hopes of the US and China making an audit deal, which would allow American regulators to inspect audit records of US-listed Chinese companies. US indices closed in the green on Thursday, led by the tech-heavy index NASDAQ 100, which rose 1.8%. The Dow Jones closed 1% higher while the S&P 500 rose 1.4%. US stocks rose ahead of the much-awaited conference of central bankers. Brent crude oil futures hover around $100 per barrel after falling about 1.8% on Thursday.
Nifty Smallcap 100 and Nifty Midcap 100 trade in the green, following the benchmark index. Nifty Pharma and Nifty Auto trade higher than Thursday. Nifty IT trades in the green, taking cues from the NASDAQ 100, which closed 1.8% higher on Thursday.
Nifty 50 closed at 17,582.90 (60.5, 0.3%) , BSE Sensex closed at 58,833.87 (59.2, 0.1%) while the broader Nifty 500 closed at 15,165.35 (64.7, 0.4%)
Market breadth is in the green. Of the 1,912 stocks traded today, 1,046 were in the positive territory and 811 were negative.
Stocks like Eicher Motors, ABB India, Schaeffler India, and Solar Industries are in the overbought zone, according to the relative strength index or RSI.
Lupin's subsidiary--Lupin Healthcare (UK)--receives approval from the UK's Medicines and Healthcare Products Regulatory Agency (MHRA) to market Lutio, a generic version of Spiriva. It is used to relieve wheezing, shortness of breath, coughing, and chest tightness in patients with chronic obstructive pulmonary disease (COPD).
Sequoia Capital India sells 17.1 crore shares (or 2% stake) in Zomato. The venture capital firm's holding in Zomato falls to 4.4% from 6.4%.
Sequoia Capital Reduces Holding In Zomato By Selling 2% Stake https://t.co/8JXFCtElDApic.twitter.com/EZZtPGCDcL
— NDTV Profit (@NDTVProfit) August 26, 2022Shipping industry rises 8.7% over the past week. Mazagon Dock Shipbuilders and Seamec rise over 9%, outperforming the industry.
Dreamfolks Services’ Rs 562-crore IPO gets bids for 56.6X of the available 94.8 lakh shares on offer on the last day of bidding. The retail investor quota gets bids for 43.6X of the available 17.2 lakh shares on offer.
Consumer durable stocks like Titan, Havells India, Voltas, Aditya Birla Fashion and Retail, Crompton Greaves Consumer Electricals and Dixon Technologies (India) are rising in trade. The broader sectoral index BSE Consumer Durables is also trading in the green.
Eicher Motors falls after its Chief Financial Officer (CFO) Kaleeswaran Arunachalam resigns. His last working day is September 2. Kaleeswaran will join Crompton Greaves Consumer Electricals as the CFO on September 5.
IT Networking Equipments,Other Leisure Facilities, and Shipping industries rise by more than 3% in trade today.
Gensol Engineering hits a 52-week high of Rs 1,706.6 on bagging orders worth Rs 153.2 crore for building solar power projects. The total capacity of the power projects is around 58.8 MW. The projects will be executed in Jammu & Kashmir, Gujarat, Punjab, Rajasthan, Tamil Nadu, and Telangana.
Societe Generale says that the Indian rupee may struggle against the US dollar amid slowing global growth. Also, the US Federal Reserve’s stance on interest rates could overshadow RBI’s intervention.
Indian rupee to remain under pressure despite RBI support - Societe Generale https://t.co/DqfGRszSJhpic.twitter.com/910HOqwAc2
— Reuters Business (@ReutersBiz) August 26, 2022HDFC Securities initiates coverage on Balkrishna Industries with a ‘Reduce' rating with a target price of Rs 2,093. This indicates a downside of 1.1%. The brokerage is pessimistic about the company’s prospects due to an uncertain global demand outlook for off-highway tyres and recessionary trends in the US and Europe. It also believes the stock is trading at an expensive valuation. The brokerage expects the company’s revenue to grow at a CAGR of 4.6% over FY23-25.
IDBI Bank rises as its Chief Executive Officer Rakesh Sharma says that the bank will recover about Rs 19,500 crore on bad debts, according to reports. The bank is currently sitting on Rs 78,000 crore in bad debts including write-offs, of which 25% will likely be recovered.
BNP Paribas Arbitrage sells 4 lakh shares (0.6% stake) in PVR for Rs 74.5 crore in a bulk deal on Thursday.
Delhivery is rising in trade as Jefferies initiates coverage with a ‘Buy’ rating. It has set a target price of Rs 775, indicating an upside of 38%. The brokerage believes that the company will be profitable by FY26.
Shares of #Delhivery gain after #Jefferies initiates coverage with a ‘buy’, terming the company as the “best logistics play” in India’s e-commerce sector. https://t.co/UFELPV4eEX
— BQ Prime (@bqprime) August 26, 2022All metal stocks are trading in the green. Stocks like JSW Steel, Tata Steel, Vedanta, Hindalco Industries, Jindal Steel & Power, Steel Authority of India (SAIL), among others are up by more than 1.5%. The broader sectoral index Nifty Metal is also rising in trade.
Infibeam Avenues rises as it buys a 50% stake in a Gurgaon-based software startup, Vishko22 Products & Services. The company invests in Vishko22 to develop omnichannel enterprise software products and services. It plans to tap the demand in this segment from B2B e-commerce players in India and globally.
Macquarie maintains its positive stance on private sector banks. The brokerage expects profit growth of around 18-20% for the sector. It also says that the loan growth will be at 20% for the next three years.
#BrokerageRadar | Macquarie on Banks: HDFC Bank, ICICI Bank are our top picks, IndusInd Bank is “dark horse”, Financials sector more attractive relative to other sectors @HDFC_Bank@ICICIBank@MyIndusIndBank#StockMarket#StocksToWatchpic.twitter.com/86qrCPzu4F
— ET NOW (@ETNOWlive) August 26, 2022Syrma SGS Tech’s shares list at an 18% premium to the issue price of Rs 220 on its debut on the bourses. The Rs 840-crore IPO was subscribed for 32.6 times the total shares on offer.
Nelco is rising as it agrees to collaborate with Intelsat to provide in-flight connectivity services. Intelsat is an in-flight connectivity provider. According to the agreement, Intelsat will provide end-to-end broadband coverage to its airline partners, on domestic and international flights to and from an Indian airport.
HDFC Bank enters into an indicative and non-binding agreement with Go Digit Life Insurance to invest Rs 119.8 crore for an equity stake of 9.9%. Go Digit Life Insurance has also applied for a license with the Insurance Regulatory and Development Authority of India (IRDAI) to conduct its life insurance business.
Riding High:
Largecap and midcap gainers today include The New India Assurance Company Ltd. (97.55, 7.37%), IDBI Bank Ltd. (45.75, 6.27%) and Jindal Steel & Power Ltd. (419.65, 4.14%).
Downers:
Largecap and midcap losers today include Adani Power Ltd. (375.50, -4.57%), Bandhan Bank Ltd. (286.35, -3.63%) and Eicher Motors Ltd. (3,355.10, -3.63%).
Volume Rockets
22 stocks in BSE 500 are trading on high volumes today.
Top high volume gainers on BSE included Mazagon Dock Shipbuilders Ltd. (354.15, 12.77%), The New India Assurance Company Ltd. (97.55, 7.37%) and Just Dial Ltd. (610.80, 6.47%).
Top high volume losers on BSE were Tata Teleservices (Maharashtra) Ltd. (93.80, -5.30%), Sundaram Clayton Ltd. (4,591.90, -1.16%) and Avanti Feeds Ltd. (466.45, -0.04%).
Kalpataru Power Transmissions Ltd. (390.65, 5.40%) was trading at 16.5 times of weekly average. KIOCL Ltd. (204.20, 6.11%) and General Insurance Corporation of India (124.40, 3.24%) were trading with volumes 13.1 and 8.3 times weekly average respectively on BSE at the time of posting this article.
BSE 500: highs, lows and moving averages
20 stocks took off, crossing 52-week highs,
Stocks touching their year highs included - Adani Transmission Ltd. (3,751.20, 0.95%), Bajaj Auto Ltd. (4,054.40, -0.21%) and Bank of Baroda (128.30, 1.91%).
29 stocks climbed above their 200 day SMA including Route Mobile Ltd. (1,565.05, 6.22%) and Kalpataru Power Transmissions Ltd. (390.65, 5.40%). 5 stocks slipped below their 200 SMA including Bandhan Bank Ltd. (286.35, -3.63%) and Godfrey Phillips India Ltd. (1,123.75, -1.82%).
Trendlyne Marketwatch
25 Aug 2022
Trendlyne Analysis
Nifty 50 lost over 200 points from its day’s high and closed in the red, with the volatility index, India VIX, rising over 19%. The benchmark index remained volatile today on the back of futures and options August 25 contract expiry day. European indices traded higher than Wednesday as investors await the release of minutes from the European Central Bank's last policy meeting later today.
Most major Asian indices closed in the green, tracking the US indices, which closed higher on Wednesday. The tech-heavy index, NASDAQ 100, rose 0.3% while the Dow Jones closed 0.2% higher. Investors brace for hawkish commentary from the US Federal Reserve Chairman Jerome Powell at a conference scheduled later this week. Crude oil prices traded marginally lower after rising over 5% in the last three trading sessions. Crude oil rose on Wednesday on concerns that the US may not consider additional concessions to Iran in response to the draft agreement that could restore Iran’s nuclear deal.
Nifty Smallcap 100 closed in the green, despite the benchmark index closing in the red. Nifty Bank and Nifty Pharma closed lower than Wednesday. Nifty IT trades flat, despite the NASDAQ 100 closing in the green on Wednesday.
Nifty 50closed at 17,508.20 (-96.8, -0.6%), BSE Sensexclosed at 58,774.72 (-310.7, -0.5%) while the broader Nifty 500closed at 15,090.60 (-49.8, -0.3%)
Market breadth is in the green. Of the 1,907 stocks traded today, 979 were gainers and 885 were losers.
Stocks like KRBL, RattanIndia Enterprises, Solar Industries India, and Kalyan Jewellers India are in the overbought zone, according to the money flow index or MFI.
- S&P Global Ratings believes India is well buffered against cyclical difficulties. It has enough foreign exchange reserves to cope with the pressure on credit worthiness. The rating agency expects India's GDP to grow 7.3% in FY23
India has built up buffers against cyclical difficulties & has ample foreign exchange reserves to withstand pressure on credit worthiness, S&P Global Ratings said.#Forex#Ratingagency#IndianEconomy#forexreservehttps://t.co/IQuyEYbZv7
— Business Standard (@bsindia) August 25, 2022 City Union Bank and Bank of Baroda hit their 52-week highs of Rs 189.4 and Rs 128, respectively. City Union Bank rises for two sessions, while Bank of Baroda trades higher for four consecutive days.
- Hotel stocks like Chalet Hotels and Royal Orchid Hotels are rising in trade as occupancies improve. Chalet Hotels' MD and CEO, Sanjay Sethi, hints at hiking room rates by 30-40% by next year.
Hotels Under Spotlight | Room rates next year will be 30-40% above pre-pandemic levels, says Chalet Hotels MD & CEO, Sanjay Sethi. Occupancies have reached peak levels now, Royal Orchid CFO, Amit Jaiswal tells @SumairaAbidi@PavitraParekh1 & @Nigel__DSouzapic.twitter.com/3gohDFsVKg
— CNBC-TV18 (@CNBCTV18News) August 25, 2022 HDFC Securities maintains its ‘Sell’ rating on Vinati Organics with a target price of Rs 1,765. This indicates a downside of 19.1%. The brokerage’s negative outlook on the company’s prospects is due to a shift in its revenue mix towards products with low margins. It also believes the company is currently trading at an expensive valuation.
Dreamfolks Services’ Rs 562-crore IPO gets bids for 6.1X of the available 94.8 lakh shares on offer on the second day of bidding. The retail investor quota gets bids for 19.1X of the available 17.2 lakh shares on offer.
UNO Minda to invest up to Rs 300 crore to expand manufacturing facilities. The capex includes a four-wheeler alloy wheel manufacturing capacity at its Bawal Haryana plant, setting up automotive switches manufacturing plant in Farrukhnagar, and opening a subsidiary and office in Dubai to enhance reach.
Central Bureau of Investigation (CBI) files a charge sheet against Biocon's arm Biocon Biologics in an alleged bribery case, according to reports. The case is in relation to the arrest of a Biocon Biologics executive and a senior official of the Central Drugs Standard Control Organisation (CDSCO). It is alleged that the Associate Vice President of the company, Praveen Kumar, cleared a bribe payment of Rs 9 lakh to Joint Drug Controller, Eswara Reddy.
Photographic Products, Computer Hardware, and Household Appliances industries rise by more than 3% in trade today.
ICICI Securities downgrades its rating on Tata Power to ‘Add’ from ‘Buy’ with a target price of Rs 262, indicating an upside of 13.9%. The brokerage downgrades the company as it believes the stock is currently trading at an expensive valuation. However, it believes the company is the best-placed private player in the power sector given its backward integration, with businesses across the value chain. The brokerage expects the company’s net profit to grow at a CAGR of 16.9% over FY22-24.
Realty stocks like Indiabulls Real Estate,Phoenix Mills, DLF, and Godrej Properties, among others, are rising in trade. The broader sectoral indexNifty Realtyis also trading in green.
NHPC is rising as its arm NHPC Renewable Energy signs a memorandum of understanding (MoU) with the government of Rajasthan. The MoU pertains to the setting up of 10 GW renewable energy parks in Rajasthan
Lupin acquires brands ‘Ondero’ and ‘Ondero Met’ for a cash consideration of 26 million euros (Rs 207.6 crore) from Boehringer Ingelheim International, a pharmaceutical company based in Germany. These brands are medicines used for treating diabetic patients and the company expects this acquisition to improve its portfolio of diabetic medicines.
College Retirement Equity Fund buys a 0.76% stake (45.8 lakh shares) in RBL Bank worth Rs 49.9 crore in a bulk deal on Wednesday.
Torrent Pharmaceuticals to acquire skincare products manufacturer Curatio Healthcare for approx Rs 2,100 crore, according to reports. The deal is expected to take place within the next two weeks.
CLSA maintains its 'Sell' rating on Tata Power as the brokerage finds the stock expensive. It has a target price of Rs 212.
#BrokerageRadar | CLSA on @TataPower: Maintain Sell as the stock remains expensive, targets for 4x PAT over FY22-27 #StockMarket#StocksToWatch#TataPowerpic.twitter.com/0lL2zQgIVE
— ET NOW (@ETNOWlive) August 25, 2022All public sector banks are trading in the green. Stocks like Canara Bank, Punjab National Bank, Indian Overseas Bank, Union Bank of India, Indian Bank, among others, are up by more than 2%. The broader sectoral index Nifty PSU Bank is also rising in trade.
PSP Projects is rising as it bags contracts worth Rs 247.3 crore from the precast and other segments. With the receipt of the current order, the company’s total order inflow in FY23 stands at Rs 1,344.2 crore.
PB Fintech approves investment of Rs 650 crore in its wholly-owned subsidiary Policybazaar Insurance Brokers. The amount will help in meeting operating expenses and improve brand awareness of Policybazaar Insurance Brokers. It also approves an investment of Rs 250 crore in another subsidiary Paisabazaar Marketing and Consulting for FY23.
Bharti Airtel's promoter Bharti Telecom will buy a 3.3% stake in the company from Singapore Telecommunication (Singtel) for 2.25 billion Singapore dollars. The transaction will be completed within 90 days. Post this transaction, Singtel's shareholding in Bharti Airtel will be around 10%, while Bharti Telecom's will be 6%.
Riding High:
Largecap and midcap gainers today include Bharat Heavy Electricals Ltd. (57.45, 7.89%), IDBI Bank Ltd. (43.05, 7.36%) and L&T Finance Holdings Ltd. (80.30, 7.07%).
Downers:
Largecap and midcap losers today include Coromandel International Ltd. (1,009.95, -4.60%), Nippon Life India Asset Management Ltd. (303.25, -3.15%) and Emami Ltd. (489.40, -2.54%).
Crowd Puller Stocks
35 stocks in BSE 500 are trading on high volumes today.
Top high volume gainers on BSE included Central Bank of India (20.05, 9.86%), Bharat Heavy Electricals Ltd. (57.45, 7.89%) and IDBI Bank Ltd. (43.05, 7.36%).
Top high volume losers on BSE were Coromandel International Ltd. (1,009.95, -4.60%), PB Fintech Ltd. (505.75, -1.36%) and CSB Bank Ltd. (202.45, -0.25%).
Equitas Small Finance Bank Ltd. (46.50, 5.80%) was trading at 18.0 times of weekly average. L&T Finance Holdings Ltd. (80.30, 7.07%) and Cochin Shipyard Ltd. (351.15, 3.05%) were trading with volumes 8.8 and 7.6 times weekly average respectively on BSE at the time of posting this article.
BSE 500: highs, lows and moving averages
21 stocks hit their 52-week highs, while 1 stock hit its 52-week lows.
Stocks touching their year highs included - Adani Transmission Ltd. (3,715.80, 0.42%), Bank of Baroda (125.90, 1.90%) and Cholamandalam Investment & Finance Company Ltd. (785.85, -1.63%).
Stock making new 52 weeks lows included - Sanofi India Ltd. (6,239.30, 0.05%).
26 stocks climbed above their 200 day SMA including Central Bank of India (20.05, 9.86%) and Bharat Heavy Electricals Ltd. (57.45, 7.89%). 6 stocks slipped below their 200 SMA including Suzlon Energy Ltd. (8.45, -3.43%) and HFCL Ltd. (71.95, -1.91%).
Trendlyne Marketwatch
24 Aug 2022
Trendlyne Analysis
Nifty 50 ended marginally higher after gyrating between gains and losses on a volatile day of trade. European stocks followed the global trend and traded lower than Tuesday. Most major Asian indices closed lower, tracking the US indices, which closed flat to lower on Tuesday. The tech-heavy index, NASDAQ 100, closed flat while the Dow Jones closed 0.5% lower. Chinese stocks closed sharply lower amid power shortage concerns in some regions in China and fears of a hawkish commentary by US Federal Reserve Chairman Jerome Powell at the Jackson Hole symposium to be held later this week. Brent crude oil futures traded higher after rising over 3.7% on Tuesday as Saudi Arabia warned that OPEC could cut output to address the recent fall in crude oil prices.
Nifty Smallcap 100 and Nifty Midcap 100 closed in the green, despite the benchmark index closing flat. Nifty Media and Nifty Realty closed higher than Tuesday. Nifty IT, which lost about 1.8% in the previous session, extended its losses and closed in the red.
Nifty 50closed at 17,607.55 (30.1, 0.2%), BSE Sensexclosed at 59,085.43 (54.1, 0.1%) while the broader Nifty 500closed at 15138.15 (47.7, 0.3%)
Market breadth is in the green. Of the 1,904 stocks traded today, 1,192 were on the uptrend, and 642 went down.
RBL Banksees a long build-up in its August 25 future series as its open interest rises 13% with put to call ratio of 0.9.
TVS Motor to buy a 48.27% stake worth Rs 86.4 crore in Nkars Mobility Millennial Solutions, which is engaged in trading and distributing pre-owned two-wheelers. The company believes this acquisition will aid in growing its pre-owned two-wheeler business.
Shipping companies like Great Eastern Shipping Co, Mazagon Dock Shipbuilders, Shipping Corp of India, among others, are rising in trade as crude tanker prices rise to a two-year high and also due to increase in demand for tankers.
#MarketsWithETNOW | Shipping stocks in focus! GE Shipping and Shipping Corporation have risen to almost 9% in last three sessions. What is driving this rally?, @Sharad9Dubey tells us more @ge_shipping@shippingcorp#StocksToWatchpic.twitter.com/DCmLSM4vUs
— ET NOW (@ETNOWlive) August 24, 2022HDFC Bank, Infosys, and ICICI Bank are amongst the top analyst picks with strong buy calls according to Trendlyne’s Forecaster’s consensus estimates.
- More than 21 lakh shares of Bank of Baroda exchange hands at a price of Rs 122 per share in a block deal, according to reports.
#CNBCTV18Market | Bank Of Baroda sees a change of hands for more than 21 lakh shares in a block at Rs 122/sh pic.twitter.com/AYnEVCBLv0
— CNBC-TV18 (@CNBCTV18Live) August 24, 2022 Dreamfolks Services’ Rs 562-crore IPO gets bids for 2X of the available 94.8 lakh shares on offer on the first day of bidding. The retail investor quota gets bids for 7.9X of the available 17.2 lakh shares on offer. The IPO is entirely an offer for sale for Rs 562 crore.
Asahi India Glass and Uflex hit their all-time highs of Rs 622.5 and Rs 742.9, respectively. Both stocks are rising for four consecutive sessions.
BEML falls ahead of its board meeting today to decide a record date for the eligible shareholders for issuance of BEML Land Assets shares. The decision is for the issuance of 1:1 shares by BEML Land Assets as part of its demerger scheme. The demerger of BEML Land Assets is part of the strategic disinvestment of BEML undertaken by the Centre.
ICICI Securities maintains its 'Buy' rating on GlaxoSmithKline Pharmaceuticals with a target price of Rs 1,456. This indicates a downside of 0.4%. The brokerage believes that the company's exposure only to domestic formulations, strong balance sheet and strong brand equity bode well for the stock. However, it also expects the acute therapies to grow at a moderate pace in the coming quarters. It estimates the company's revenue to grow at a CAGR of 4.2% over FY22-24.
IDBI Bank is rising as reports suggest that the Centre is considering selling at least a 51% stake in the bank. The Centre held a 45.5% stake directly, and another 49.2% stake through Life Insurance Corp of India (LIC) as of June 2022. The Centre and LIC will try to gauge buyer interest from the end of September.
Brokerage firm Bernstein India says the duopoly in India's food delivery market is now shifting in favour of Zomato. Zomato's market share expanded to 55% in the food delivery business, through its stronger execution. The brokerage expects Zomato to break even by Q1FY24.
#MarketsWithMC: Over the past few years, Zomato and Swiggy have been neck and neck in terms of market share, with each holding close to 50%. However, that balance is now shifting.
— Moneycontrol (@moneycontrolcom) August 24, 2022
Read more about it ????https://t.co/0nF0mlyYog#Zomato#Swiggy#BernsteinPhotographic Products,Consulting Services, and Paper & Paper Products industries rise by more than 3% in trade today.
Kumar Mangalam Birla, Chairman at Hindalco Industries says that the company will invest $8 billion in India and in its US arm Novelis, over the next five years, as part of its capital expenditure plan.
Hindalco AGM | "Hindalco to invest 70% of cash flows in downstream businesses with high growth potential", says Kumar Mangalam Birla @AdityaBirlaGrp#KumarMangalamBirla#Birlapic.twitter.com/IlYd48b5tA
— ET NOW (@ETNOWlive) August 24, 2022Axis Direct maintains its ‘Buy’ rating on JK Cement with a target price of Rs 3,020. This indicates an upside of 13%. The brokerage remains positive on the company’s prospects given its increasing production capacity, deeper market reach and improving product mix amid rising demand for cement. It expects the company’s revenue to grow at a CAGR of 15% over FY22-24.
Aurobindo Pharma is rising as its wholly-owned subsidiary Eugia Pharma gets USFDA's approval to manufacture and sell Medroxyprogesterone Acetate Injectable Suspension USP. The drug is used for female reproductive health and is likely to come out by Q3FY23. This product has a market size of approx $62 million.
Realty stocks like DLF, Macrotech Developers, Godrej Properties, Oberoi Realty and Phoenix Mills are rising in trade. All constituents of the broader Nifty Realty index are also trading in the green.
IndusInd Bank is rising in trade as Jefferies reiterates its ‘Buy’ rating and raises the target price to Rs 1,330 from Rs 1,250.The brokerage says that there is improvement in retail deposit and asset & liability management. It also says that the bank had sufficient buffer though NPAs fell.
#CNBCTV18Market | Jefferies gives buy rating on IndusInd Bank, says new initiatives on liabilities, corp & rural banking can turnaround RoA pic.twitter.com/hYoQURv4N1
— CNBC-TV18 (@CNBCTV18Live) August 24, 2022Adani Enterprises arm AMG Media buys stake in Vishvapradhan Commercial (VCPL) for Rs 113.7 crore. VCPL held warrants convertible into shares of NDTV's promoter entity RRPR Holding in lieu of a loan given in 2009. After the acquisition of VCPL by AMG Media, the warrants were converted into shares of VCPL, giving AMG Media control of NDTV's promoter RRPR Holding which holds a 29.2% stake in the media company. This triggered an open offer to NDTV's public shareholders, the price for which is set at Rs 294 per share. NDTV's shares hit the upper circuit in early trade.
Maruti Suzuki is falling as it recalls 166 Dzire Tour S vehicles manufactured during August 6-16. The manufacturer believes there is a possible defect in the airbag control unit. The vehicles are recalled to replace these units.
Dreamfolks Services raises Rs 253 crore from investors by selling 7.7 lakh equity shares at Rs 326 per share. Investors include Societe Generale, BNP Paribas Arbitrage, Saint Capital Fund, Segantii India Mauritius, Kuber India Fund, Smallcap World Fund, Quant Mutual Fund, and Aditya Birla Sun Life Mutual Fund, among others.
Chennai Petroleum’s board approves a joint venture (JV) with Indian Oil and other seed equity investors. The JV will build a 9 million metric tonne per annum refinery project at Cauvery River Basin in Nagapattinam district for approx. Rs 31,850 crore. The board also approves an equity investment of Rs 2,570 crore towards the project.
Riding High:
Largecap and midcap gainers today include Varun Beverages Ltd. (1,030.90, 6.99%), ABB India Ltd. (3,060.45, 6.71%) and Bandhan Bank Ltd. (295.75, 5.59%).
Downers:
Largecap and midcap losers today include Adani Power Ltd. (390.40, -4.99%), Zomato Ltd. (62.20, -3.49%) and Lupin Ltd. (677.60, -2.57%).
Volume Rockets
14 stocks in BSE 500 are trading on high volumes today.
Top high volume gainers on BSE included RBL Bank Ltd. (121.75, 16.95%), Rashtriya Chemicals & Fertilizers Ltd. (97.05, 7.95%) and Greaves Cotton Ltd. (178.90, 7.13%).
Top high volume loser on BSE was Swan Energy Ltd. (208.05, -2.16%).
Jyothy Labs Ltd. (190.50, 5.60%) was trading at 12.2 times of weekly average. Asahi India Glass Ltd. (623.20, 6.67%) and Responsive Industries Ltd. (140.85, 5.03%) were trading with volumes 7.9 and 7.0 times weekly average respectively on BSE at the time of posting this article.
BSE 500: highs, lows and moving averages
17 stocks made 52-week highs, while 1 stock hit its 52-week lows.
Stocks touching their year highs included - Adani Transmission Ltd. (3,700.40, 2.73%), Bharat Electronics Ltd. (294.05, -1.47%) and Deepak Fertilisers & Petrochemicals Corporation Ltd. (954.40, -2.32%).
Stock making new 52 weeks lows included - Sanofi India Ltd. (6,236.05, -0.56%).
21 stocks climbed above their 200 day SMA including Hindustan Copper Ltd. (116.90, 2.19%) and HFCL Ltd. (73.35, 1.95%). 4 stocks slipped below their 200 SMA including Suzlon Energy Ltd. (8.75, -2.23%) and HDFC Asset Management Company Ltd. (2,114.20, -2.05%).
24 Aug 2022
After posting impressive gains over the past month, the market has turned volatile. But some stocks posted impressive gains during this period as the Nifty 50 tried to capture the 18,000 level. Except for one, most of these high-beta stocks posted double-digit gains.
Zomato has the highest beta value of 3.5 with its stock posting 16.8% gains. The major reason behind this is the company’s better than expected results in Q1FY23 and its losses nearly halving on a QoQ and YoY basis.
Next highest beta stock is Tanla Platforms (at 1 month beta of 3.3). The stock has fallen almost 26% over the past month. The stock tanked 20% and hit a new 52-week low after it posted weak results in Q1FY23 with falling net profit on YoY and QoQ basis on July 25.
Devyani International also makes the list, posting 12.2% gains over the past month. This stock posted impressive gains after the company posted strong Q1 results, with its revenue almost doubling on a YoY basis.. The company posted a fourth straight quarter of profit. This upmove culminated in Temasek Holdings’ arm Dunearn International selling up to a 3% stake in the company on Tuesday, according to reports. This led the stock to fall 5.2% during Tuesday’s trade, while the broader market posted marginal gains.
Bharat Dynamics has the fourth highest one month beta of 2.9 among stocks with high volatility and it posted gains of 13.1% over the past month. Weak Q1FY23 results with approximately a 50% fall in revenue has caused the share price to fall.
Metro Brands is one of the highest gainers over the past month among high beta stocks (beta of 2.7). It posted nearly 43% gains over the past month . The stock continues to hit new all-time highs after it posted stellar Q1FY23 results. The company posted good growth and its revenue crossed Rs 500 crore for the first time ever, and logged quarterly profits of over Rs 100 crore for the second time ever. This led the stock to touch another new all-time high on August 16.
23 Aug 2022