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Trendlyne Marketwatch
Trendlyne Marketwatch
24 Jun 2022
Market closes higher, ICICI Securities maintains its ‘Buy’ rating on HDFC Bank

Trendlyne Analysis

Nifty 50 closed in the green with the volatility index Nifty VIX falling below 21%. Indian indices extended their gains from Thursday amid positive global cues. European indices followed the global trend and traded higher. Major Asian indices closed in the green, tracking the US indices, which closed higher on Thursday. US stocks rose amid falling bond yields as investors continue to assess the impact of high inflation levels and aggressive rate hikes on the global economy. The NASDAQ 100 rose 1.5% while S&P 500 closed 1% higher on Thursday. Crude oil trades sideways amid concerns over slow economic growth as a result of aggressive rate hikes by the central banks.

Nifty Smallcap 100 and Nifty Midcap 100 closed in the green, following the benchmark index. Nifty Metal and Nifty Media closed higher than Thursday’s levels. Nifty IT closed in the red, despite the NASDAQ 100 closing 1.5% higher on Thursday.

Markets closed up today. Nifty 50 closed at 15,699.25 (142.6, 0.9%) , BSE Sensex closed at 52,727.98 (462.3, 0.9%) while the broader Nifty 500 closed at 13,322.50 (143.7, 1.1%)

Market breadth is highly positive. Of the 1,881 stocks traded today, 1,489 were gainers and 349 were losers.

  • Go Fashion (India), IIFL Wealth Management, Galaxy Surfactants, and Emami are trading with higher volumes as compared to Thursday.

  • Infosys sees a short build-up in its Jun 30 future series as its open interest rises 5.3% with put to call ratio of 0.41.

  • Stocks like Just Dial, Ircon International, Rallis India, CESC, and Muthoot Finance are in the oversold zone according to the technical indicator relative strength index or RSI.

  • Strides Pharma surges in trade as its subsidiary Biolexis and Akston Biosciences announce positive results from their Phase 2/3 clinical trials in India for the covid-19 vaccine.

  • Suven Life Sciences is rising in trade as its board approves raising up to Rs 400 crore by issuing equity shares on rights basis.

  • ICICI Bank rises as Jeffries reiterates 'BUY' rating, according to reports. The brokerage believes that the lender has one of the best risk-reward ratios and expects ICICI Bank to gain from rise in bank credit growth and the ramp-up of SME vertical. The target price is unchanged at Rs 1,070 (an upside of 50.6%).

  • Public sector banking stocks like State Bank of India, Bank of Baroda, Canara Bank, Punjab National Bank, and Indian Overseas Bank, among others, are rising in trade. The broader sectoral index Nifty PSU Bank is also trading in the green.

  • Vodafone Idea is rising as reports suggest that the Centre will convert its interest liabilities of Rs 16,133 crore on its AGR dues into equity. Once this goes through, the Centre will hold a stake of 33% and become the single largest shareholder after the promoters.

  • Mahindra & Mahindra hits a new all-time high of Rs 1,066.75. The stock has outperformed Nifty500 by 16.67% over the last month.

  • Hindustan Unilever is rising in trade as the company’s chairman Nitin Paranjpe announces that it will continue to hike the prices of its products. The company cites rising costs for the price hikes.

  • PI Industries rises as Prabhudas Lilladher reiterates a 'BUY' rating on the company. The brokerage is confident of the company achieving a growth guidance of 18-20% by FY23 and a revenue CAGR of 18% over FY22-24E. The target price is unchanged at Rs 3,340 (an upside of 34.4%).

  • Solara Active Pharma Sciences is trading with more than 11 times its weekly average trading volume. Kansai Nerolac Paints, Varroc Engineering, Route Mobile, and Indo Count Industries are trading at more than three times their weekly average trading volumes.

  • ICICI Securities maintains its ‘Buy’ rating on HDFC Bank with a target price of Rs 1,955 indicating an upside of 47%. The brokerage remains positive on the company’s prospects given its plans to double its network by opening 1,500-2,000 branches per year in the next 3-5 years. It expects the company’s profit to grow at a CAGR of 20.1% over FY22-24.

  • IT stocks like MindTree, Larsen & Toubro Infotech, Coforge, MphasiS, Infosys, Tech Mahindra, among others, are falling in trade. This is despite Accenture's positive results for its March-May quarter where it beat estimates to post revenues of $16.16 billion. The broader sectoral index Nifty IT is also trading in the red.

  • ICICI Securities maintains its ‘Buy’ rating on Dr. Reddy’s Laboratories with a target price of Rs 4,925, indicating an upside of 15.2%. The brokerage expects growth momentum in the branded generics business in India & Europe and new product launches in the US to drive revenue growth for the company. It also believes the stock’s current valuation is attractive and expects revenue to grow at a 10.3% CAGR over FY22-24.

  • Greaves Cotton rises as its subsidiary, Greaves Electric Mobility, raises Rs 1,170.81 crore from Abdul Latif Jameel International. This fundraise is through a preferential allotment of 68.5 lakh shares for a 35.8% stake in the subsidiary.

  • Media stocks like Zee Entertainment Enterprises, Sun TV Network, PVR, Saregama India, Network 18 Media & Investments, TV 18 Broadcast, among others, are rising in trade. The broader sectoral index Nifty Media is also trading in the green.

  • Indian rupee rises 12 paise to 78.20 against the US dollar in early trade today.

  • DCM Shriram rises as its board of directors approves to invest Rs 65 crore for a minimum 26% stake in a special purpose vehicle (SPV). The SPV will be created for setting up a wind-solar hybrid renewable power project. It will also invest Rs 57.1 crore to manufacture potassium sulphate (K2So4) with a capacity of 4,600 tonnes per annum at Hariyawan (Uttar Pradesh) Sugar facility to derive value from by-products.

  • ONGC is rising in trade after its wholly-owned subsidiary and overseas arm ONGC Videsh, announces that it has made an oil discovery in a recently drilled well in Llanos Basin, Colombia

  • Hero MotoCorp will hike prices of its motorcyle and scooters by up to Rs 3,000 from July 1. This price hike is to offset rising costs affecting the larger automotive industry.

Riding High:

Largecap and midcap gainers today include Tube Investments of India Ltd. (1,588.65, 4.85%), Adani Power Ltd. (264.45, 4.69%) and Crompton Greaves Consumer Electricals Ltd. (344.30, 4.43%).

Downers:

Largecap and midcap losers today include Star Health and Allied Insurance Company Ltd. (533.25, -5.20%), Persistent Systems Ltd. (3,261.05, -3.16%) and MindTree Ltd. (2,831.90, -2.88%).

Crowd Puller Stocks

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

Top high volume gainers on BSE included MMTC Ltd. (39.85, 16.69%), KIOCL Ltd. (192.40, 10.10%) and Minda Corporation Ltd. (184.60, 9.85%).

Top high volume losers on BSE were Great Eastern Shipping Company Ltd. (370.30, -1.32%) and Thermax Ltd. (1,966.90, -1.10%).

Kansai Nerolac Paints Ltd. (373.20, 1.06%) was trading at 13.2 times of weekly average. Akzo Nobel India Ltd. (1,780.90, 0.33%) and Varroc Engineering Ltd. (310.70, 5.70%) were trading with volumes 11.9 and 11.0 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

1 stock took off, crossing 52 week highs, while 4 stocks hit their 52 week lows.

Stock touching their year highs included - Mahindra & Mahindra Ltd. (1,072.05, 4.32%).

Stocks making new 52 weeks lows included - Gujarat State Petronet Ltd. (214.90, 1.42%) and Hindustan Zinc Ltd. (246.55, -1.52%).

17 stocks climbed above their 200 day SMA including Minda Corporation Ltd. (184.60, 9.85%) and Mahindra CIE Automotive Ltd. (221.05, 5.16%). 1 stock slipped below their 200 SMA including NHPC Ltd. (31.05, 0.98%).

 
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The Baseline
24 Jun 2022
Five Interesting Stocks Today
  1. Vinati Organics: This chemical manufacturer company’s stock rose 3.2% intraday on Thursday after the company announced capex plans of Rs 580 crore. Out of this, Rs 300 crore is set aside to expand the manufacturing capacity of 2-acrylamindo 2-methylpropane sulfonic acid (ATBS) from 40,000 metric tonnes to 60,000 metric tonnes. This will be funded through internal accruals and is expected to be commissioned by December 2023. The remaining part of the Rs 580 crore capex (Rs 280 crore) is planned to be invested in Vinati Organics’ arm Veeral Organics for the manufacturing of products like Guaiacol and Iso Amylene. These products are used in polymerization inhibitors, flavors, fragrances, pharmaceuticals, and pesticides.

The ATBS segment contributed 40% of the total revenues in FY22 and Vinati Organics has a market share of 80% in this segment. With this expansion, it looks to further increase the market share in this space. In Q4FY22, the chemical manufacturer posted its highest-ever revenue of Rs 501 crore on the back of strong demand in the ATBS segment. Its five-year revenue CAGR till FY22 was 21% at the end of FY22. This helped the company enter this screener that lists companies with good financials, high returns, and high return on equity. In addition, mutual funds also increased their holdings in the past month. 

  1. FSN E-Commerce Ventures (Nykaa): This e-commerce company held an investor and analyst day on Thursday where it outlined its future. Its stock rose 5.6% on Thursday with its average delivery volumes this week rising above its monthly average.

During the investor and analyst discussions, Nykaa emphasized its plan to diversify its product mix. Women’s products contributed 100% of its gross merchandise value (GMV) in FY20 whereas, in FY22, it constitutes 76% with men’s products GMV rising 17%. In addition, Nykaa is focusing on an omnichannel strategy and expanding its physical store footprint. The company’s physical store count now stands at 105 across 49 cities in FY22 against 34 across 21 cities in FY19. Physical stores’ GMV share also increased from 4.5% of GMV in FY19  to 6.6% in FY22. The management believes that there’s a big opportunity in this segment and plans to expand both footprint and store concentration within cities. The company is also increasing its warehouse capacity -  in FY22, its warehouse capacity rose 40% YoY to 8.2 lakh square feet, enabling the average order to delivery time to reduce to 2.8 days against 3.5 days in FY21. 

Despite a consistent YoY quarterly revenue growth in the past four quarters, a slowdown in key discretionary categories due to elevated inflation levels can impact Nykaa in the short term. 

  1. Chambal Fertilisers & Chemicals: This fertiliser company’s promoter entities’ pledged shares are rising over the past 4-6 weeks. Zuari Industries (earlier Zuari Global), Simon India and Master Exchange & Finance pledged shares equal to 3.35% stake in the company after April 28. All of these pledges are for loans taken by these promoter entities for investments in other KK Birla Group companies. This comes after the company’s stock hit a lifetime high of Rs 516 on April 19 before the Indian markets entered the current downtrend. 

On April 20, lenders released the pledge on around 0.08% of shares held in the company by Zuari Industries. But as the company’s stock lost nearly 46% of its value over the past 6-9 weeks, the four promoter group entities started pledging more shares to lenders as collateral for the loans they raised. This brings the proportion of promoters’ pledged shares out of the total shares of the company to 14.75%. Out of the promoters’ shareholding of 60.46%, the pledged proportion of their shareholding is now at 24.4%, up from 18.86% at the end of March 2022.

  1. InterGlobe Aviation: This airline’s market share in the domestic market rose in May by 261 bps to 57.9% YoY, and the number of passengers carried rose nearly 6X to 69.9 lakh passengers. This exponential rise is mainly due to a lower base in May last year when travel restrictions were in place. On an MoM basis, the airline saw a 9% rise in the number of passengers carried, but its market share fell by 42 bps. The airline’s passenger load factor rose by 230 bps MoM and by 29.8 percentage points YoY to 81% in May. The company saw demand for air travel rise despite an increase in ticket prices.

Although demand for air travel is growing, elevated aviation turbine fuel (ATF) costs will continue to hurt the company’s margins. The company’s margins will be under pressure in Q1FY23 as well, due to rising fuel costs and the depreciating rupee according to Prabhudas Lilladher. In Q4FY22, the company’s total debt rose 23.5% YoY to Rs 36,877.8 crore and shows up on this screener for companies that have high-interest payments compared to earnings on a yearly basis.

In FY23, the management expects that capacity deployment could grow by 55- 60%,  largely led by an increase in operations. Over the long term, the management expects demand to grow on the back of a recovery in domestic and international travel, an increase in cargo volumes, and a reduction in commodity costs.

  1. Vedanta: This mining company’s stock fell 12% in intraday trade on Monday after the company put on sale its arm Sterlite Copper’s plant in Tamil Nadu. It invited expression of interest (EoI) for its Tuticorin-based smelter, which has been shut since mid-2018 following a Tamil Nadu government order. After facing several legal and political hurdles in trying to reopen the smelting plant the company has decided to sell. The smelter accounted for 40% of India’s copper output before it was shut over alleged violations of environmental norms. 

Although the company’s stock has had a rough time in the market over the past month, the street still has a positive outlook on it. The stock shows up in a screener with companies that have a high analyst rating with at least a 20% upside. Going forward, Vedanta announced a capex of $2 billion for FY23, primarily focusing on the vertical integration of its aluminium business.

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

 
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The Baseline
24 Jun 2022

When Indian consumers get a price shock while buying the humble tomato, which is now going at Rs. 100 per kg in some cities, at least they are not alone. Prices have shot up across many parts of the world, with few exceptions. India was one of the few countries where inflation fell in May compared to April - the Indian government has intervened in some areas like oil, with excise duty cuts in May, and in steel.

China has been an exception with a very low inflation rate  - the lack of a pandemic stimulus and continued lockdowns may have resulted in the country's muted May inflation rate of 2.1%. 

Elsewhere, like the US, UK and EU, inflation is still rising, forcing central banks to get much more aggressive with interest rate hikes. Interest rate increases take some time for their effects to be felt, but in the meantime global prices of key commodities like crude oil, edible oil and wheat have fallen, giving analysts hope that inflation rates will fall back to earth.  

 
Trendlyne Marketwatch
Trendlyne Marketwatch
23 Jun 2022
Markets close higher, InterGlobe Aviation’s market share in May rises 261 bps YoY to 57.9%

Trendlyne Analysis

Nifty 50 closed in the green with the Indian volatility index Nifty VIX, falling below 21%. European indices traded in the red amid mixed global cues. However, most major Asian indices closed higher, despite the US indices closing lower on Wednesday. The US indices gave up their intraday gains and closed lower after the US Federal Reserve Chairman Jerome Powell acknowledged the possibility of a recession due to a series of aggressive rate hikes. Crude oil extends losses amid slow global economic growth concerns induced by rate hikes by the central banks.

Nifty Smallcap 100 and Nifty Midcap 100 closed in the green, following the benchmark index. Nifty Bank and Nifty FMCG closed higher than Wednesday’s levels. Nifty IT closed higher, following NASDAQ futures, which is trading in the green.

Markets closed up today. Nifty 50 closed at 15,556.65 (143.4, 0.9%) , BSE Sensex closed at 52,265.72 (443.2, 0.9%) while the broader Nifty 500 closed at 13,178.80 (131.1, 1%)

Market breadth is ticking up strongly. Of the 1,875 stocks traded today, 1,230 were gainers and 590 were losers.

  • 3M India, Mahindra Logistics, Sundram Fasteners, and Aditya Birla Sun Life AMC are trading with higher volumes as compared to Wednesday.

  • Nazara Technologies rises as JM Financial initiates coverage with a ‘Hold’ rating and a target price of Rs 1,070, indicating an upside of 6.9%. The brokerage is positive on the company’s prospects given its robust presence across eSports, gamified learning, and simulation. It expects the company’s revenue to grow at a CAGR of 32% over FY22-25.

  • Maruti Suzuki India sees a long build-up in its Jun 30 future series as its open interest rises 10.4% with put to call ratio of 1.12.

  • Stocks like Indian Oil Corporation, CESC,Tech Mahindra, Vakrangee, and Star Health and Allied Insurance Company are in the oversold zone according to the technical indicator relative strength index or RSI.

  • Route Mobile rises after it hit a new 52-week low during trade today after the company announces it will consider a proposal for buyback of shares on Tuesday.

  • ICICI Securities maintains a ‘Buy’ rating on Indian Hotels Co with a target price of Rs 284, indicating an upside of 32.7%. The brokerage remains positive on the company’s strategy of increasing the number of hotels in its portfolio, increasing revenue from management contracts and new brands, and implementing cost-saving measures. It expects the company’s revenue to grow at a 12.5% CAGR over FY22-24.

  • Devyani International and Sapphire Foods India rise as Kotak Institutional Equities initiates coverage on the companies with 'ADD' and 'BUY' ratings, respectively, according to reports. The brokerage believes a potential resurgence of Yum franchisees in India due to a rise in ordering-in, sharper execution and plans to address under-penetration will help the businesses grow. This could result in revenue CAGR of 18% and 17% for Devyani and Sapphire, respectively. The brokerage set a target price of Rs 151 for Devyani International (an upside of 2.9%) and Rs 1,425 for Sapphire Foods India (an upside of 40.25%).

  • BSE Consumer Discretionary Goods and Services index constituents like Asian Paints, DLF, FSN E-Commerce Ventures, Berger Paints (India), and Zomato, among others, are rising in trade today. BSE Consumer Discretionary Goods and Services index is also trading in the green.

  • Vinati Organics rises in trade after it plans to expand capacity with a capex of Rs 580 crore to be commissioned by December 2023. This includes a capex of Rs 300 crore towards expanding ATBS capacity from 40,000 MT to 60,000 MT and a Rs 280 crore investment in arm Veeral Organics.

  • Muthoot Finance and Route Mobile hit their 52-week lows of Rs 980.1 and Rs 1060.6, respectively. Both stocks are trading lower for three consecutive sessions.

  • InterGlobe Aviation’s total passengers carried in May rises 6X YoY to 69.9 lakhs and its market share rises 261 bps YoY to 57.9%. The number of passengers carried by airlines in May rises nearly 5X to 1.2 crore.

  • Triveni Turbine is trading with more than 22 times its weekly average trading volume. IRB Infrastructure Developers, CreditAccess Grameen, Glenmark Pharmaceuticals, and Sheela Foam are trading at more than three times their weekly average trading volumes.

  • Larsen & Toubro rises as the company's hydrocarbon division wins contracts of three offshore packages from an overseas client. The company classifies the contract as 'large' which means that the order value is in the range of Rs 2,500-5,000 crore.

  • Sun TV Network falls to a new 52-week low of Rs 402.55. Stock falls 10% in the last two sessions.

  • Indian rupee appreciates 9 paise to 78.23 against the US dollar in early trade today. The rupee fell 19 paise to a new all-time low of 78.32 on Wednesday.

  • Quess Corp is rising in trade as Allsec Technologies is set to merge with the company in an all-stock deal. Allsec Technologies is valued at an enterprise value of Rs 16.2 crore. Public shareholders of Allsec Technologies will be issued equity shares of Quess Corp in the ratio of 74:100. The transaction is at arm's length basis.

  • Spandana Sphoorty rises as it resolves all differences with the promoter and former Managing Director Padmaja Gangireddy. This includes a reconciliation of all historical matters. Gangireddy resigned from her position as Managing Director following which certain disputes arose between her and the board of directors of the company.

  • IRB Infrastructure is rising in trade as it receives Rs 308 crore, which is 75% of the total arbitration award of Rs 419 crore from the National Highway Authority of India. IRB Pathankot Amritsar Toll Road, a special purpose vehicle of the company, receives the award over a dispute in payment related to the Pathankot-Amritsar project.

  • Glenmark Pharmaceuticals is falling as the US FDA issues six observations after inspecting its formulation facility at Baddi. The inspection took place from June 13-22

  • Auto stocks like MRF, Bosch, Maruti Suzuki, Baja Auto, Eicher Motors, Hero MotoCorp, TVS Motor Co, among others, are rising in trade. The broader sectoral index Nifty Auto is also trading in the green.

  • Vodafone Idea is set to raise funds worth Rs 436.2 crore from Euro Pacific Securities, a Vodafone Group entity and promoter of the company. The board approved issuing 42.7 crore equity shares at Rs 10.2 per share or 42.7 crore warrants convertible to equity shares at an issue price of Rs 10.2 per share. This is the company’s second fund raise in two months.

Riding High:

Largecap and midcap gainers today include Maruti Suzuki India Ltd. (8,271.00, 6.27%), Hero MotoCorp Ltd. (2,674.10, 5.93%) and Eicher Motors Ltd. (2,819.05, 5.87%).

Downers:

Largecap and midcap losers today include Star Health and Allied Insurance Company Ltd. (562.50, -5.75%), Reliance Industries Ltd. (2,464.95, -1.62%) and InterGlobe Aviation Ltd. (1,621.50, -1.54%).

Volume Shockers

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

Top high volume gainers on BSE included Responsive Industries Ltd. (128.65, 16.80%), Chemplast Sanmar Ltd. (452.20, 14.79%) and KEC International Ltd. (412.95, 10.87%).

Triveni Turbine Ltd. (158.90, 5.06%) was trading at 34.7 times of weekly average. IRB Infrastructure Developers Ltd. (199.30, 7.12%) and Route Mobile Ltd. (1,193.65, 8.51%) were trading with volumes 9.4 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 were underachievers and hit their 52 week lows.

Stocks making new 52 weeks lows included - Axis Bank Ltd. (629.35, 0.41%) and Chambal Fertilisers & Chemicals Ltd. (280.40, 1.10%).

11 stocks climbed above their 200 day SMA including Hero MotoCorp Ltd. (2,674.10, 5.93%) and NOCIL Ltd. (248.75, 4.47%). 6 stocks slipped below their 200 SMA including Gujarat State Fertilizer & Chemicals Ltd. (133.20, -2.63%) and Power Grid Corporation of India Ltd. (208.55, -1.00%).

 
Trendlyne Marketwatch
Trendlyne Marketwatch
22 Jun 2022
Markets close lower, Supreme Industries and Axis Bank hit their 52-week lows today

Trendlyne Analysis

Nifty 50 closed in the red, with the volatility index Nifty VIX, rising above 21%. European indices trade in the red as UK’s inflation rate hits a new 40-year high of 9.1% in May on the back of high food and energy prices. Asian stocks closed lower as investors remain fearful of the impact of aggressive interest rate hikes by central banks to tame high inflation. However, the US indices closed in the green on Tuesday led by the tech-heavy NASDAQ 100, which rose 2.5%. The S&P 500 closed over 2.4% higher, while Dow Jones advanced 2.2%. Crude oil falls amid slow global economic growth concerns induced by aggressive rate hikes by the central banks.

Nifty Smallcap 100 and Nifty Midcap 100 closed in the red, following the benchmark index. Nifty Energy and Nifty Media closed lower than Tuesday’s levels. Nifty IT closed in the red, despite the tech-focused NASDAQ 100 closing in the green on Tuesday.

Indian markets slumped today. Nifty 50 closed at 15,413.30 (-225.5, -1.4%) , BSE Sensex closed at 51,822.53 (-709.5, -1.4%) while the broader Nifty 500 closed at 13,047.75 (-194.2, -1.5%)

Market breadth is highly negative. Of the 1,876 stocks traded today, 518 were on the uptick, and 1,326 were down.

  • Procter & Gamble Hygiene & Healthcare, 3M India, IIFL Wealth Management, and Gland Pharma are trading with higher volumes as compared to Tuesday.

  • Tata Consultancy Services sees a long build-up in its Jun 30 future series as its open interest rises 7.1% with put to call ratio of 0.59.

  • Stocks like Tata Steel Long Products, IndusInd Bank, SpiceJet, Chambal Fertilisers & Chemicals, and HLE Glascoat are in the oversold zone according to the technical indicator relative strength index or RSI.

  • Future Enterprises falls in trade by 5%, after it defaults on interest payment of Rs 6 crore on non-convertible debentures.

  • Greenlam Industries rises as it enters into an asset purchase agreement with Bloom Decor to buy a laminate manufacturing plant in Gujarat, according to an exchange filing. A total investment of Rs 51 crore (Rs 36 crore to acquire the plant and Rs 15 crore to operationalise it) will be financed through internal accruals.

  • Elecon Engineering rises to a 14-year high of Rs 274.90. It's still far from its life high of 343 it touched on December 16, 2007. The stock is up 83% over the past three months.

  • Supreme Industries and Axis Bank hit their 52-week lows of Rs 1,687.5 and Rs 621.3, respectively. While Supreme Industries falls for three consecutive sessions, Axis Bank trades lower for two sessions.

  • Alembic Pharmaceuticals is falling as it announces that its revenues fell 8% and 12% YoY in April and May 2022, respectively. The company cites a higher base in its anti-infective segment a year ago for the decline. It also adds that the Indian pharmaceutical market shrunk by 9% and 6% in April and May, respectively

  • Suprajit Engineering is trading with more than five times its weekly average trading volume. Max Healthcare Institute, 3M India, Sundram Fasteners, and Aditya Birla Sun Life AMC are trading at more than three times their weekly average trading volumes.

  • Oil and gas stocks like ONGC, Reliance Industries, Gujarat Gas and GAIL fall as Brent crude oil slides below $110/bbl. The broader BSE Oil & Gas index is also trading in the red today.

  • UPL falls to a new 52-week low of Rs. 618.05. The stock falls 23% in a month since closure of buyback offer on May 20.

  • Dixon Technologies falls as Morgan Stanley maintains its 'Underweight' rating and cut its target price to Rs 2,634, according to reports. The brokerage believes that weak consumer electronics, domestic lighting volumes and high commodity prices are key concerns for the company.

  • Nifty Commodities index constituents like Reliance Industries, Adani Green Energy, Oil and Natural Gas Corporation, UltraTech Cement, and NTPC, among others, are falling in trade today. Nifty Commodities index is also trading in the red.

  • Indian rupee depreciates 4 paise to 78.17 against the US dollar in early trade today.

  • Zomato is rising in trade as it announces that it will consider a potential acquisition on Friday in its board meeting. The company may pay the consideration for this acquisition through a preferential issue of shares.

  • IDBI Capital maintains a ‘Hold’ rating on Tata Consultancy Services with a target price of Rs 3,410, indicating an upside of 10%. The brokerage expects the company’s investment in cloud migration and emerging technologies will drive revenue growth. It estimates the company’s revenue to grow at a 12.6% CAGR over FY22-24. However, it expects rising input costs to increase margin pressure in FY23.

  • Matrimony.com rises as its board of directors approve a buyback of shares of up to Rs 75 crore. The final buyback price is set at Rs. 1,150 per share . The board of directors fix July 4 as the record date for the buyback.

  • Jindal Steel & Power’s subsidiary Jindal Power is set to acquire Simhapuri Energy’s 600 MW power plant for Rs 300 crore, according to reports. The power plant runs on imported coal and the agreement is likely to be completed in over a week. Simhapuri Energy is currently under liquidation.

  • Jain Irrigation Systems’ arm, Jain International Trading, to merge with Temasek-owned Rivulis. The company’s international irrigation business is valued at an enterprise value of Rs 4,200 crore, and after the transaction Jain Irrigation will hold a 22% stake in the merged entity. The cash proceeds from the merger will be used to pay off Rs 2,700 crore of overseas debt.

  • All metal stocks trade in the red. Stocks like JSW Steel, Tata Steel, Vedanta, Hindalco Industries, Jindal Steel & Power, NMDC, and Steel Authority of India (SAIL), among others, are down by more than 3%. The broader sectoral index Nifty Metal is also falling in trade.

  • Securities and Exchange Board of India (SEBI) approves the merger of the multiplex operators PVR and Inox Leisure. According to the agreement, Inox Leisure will merge with PVR in a share swap ratio of 3 shares of PVR for every 10 shares of Inox.

Riding High:

Largecap and midcap gainers today include Indian Overseas Bank (16.70, 5.36%), Bank of India (44.00, 3.65%) and Hindustan Petroleum Corporation Ltd. (224.55, 2.82%).

Downers:

Largecap and midcap losers today include Sun TV Network Ltd. (408.60, -8.71%), Hindalco Industries Ltd. (316.45, -6.72%) and UPL Ltd. (613.65, -6.20%).

Volume Shockers

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

Top high volume gainers on BSE included ITI Ltd. (104.20, 17.21%), Sequent Scientific Ltd. (96.90, 7.49%) and Central Bank of India (17.30, 3.90%).

Top high volume losers on BSE were Aditya Birla Sun Life AMC Ltd. (401.00, -2.34%), 3M India Ltd. (19,764.85, -1.11%) and Cyient Ltd. (792.10, -0.98%).

Max Healthcare Institute Ltd. (364.25, 0.73%) was trading at 5.5 times of weekly average. Sundram Fasteners Ltd. (684.60, 0.53%) and Rossari Biotech Ltd. (863.10, 0.40%) were trading with volumes 4.5 and 3.8 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

23 stocks were underachievers and hit their 52 week lows.

Stocks making new 52 weeks lows included - Axis Bank Ltd. (626.80, -1.52%) and Chambal Fertilisers & Chemicals Ltd. (277.35, -5.15%).

9 stocks climbed above their 200 day SMA including Crisil Ltd. (3,204.85, 5.74%) and Blue Dart Express Ltd. (7,172.45, 5.25%). 8 stocks slipped below their 200 SMA including Sunteck Realty Ltd. (460.75, -3.23%) and Siemens Ltd. (2,274.20, -3.09%).

 
Trendlyne Marketwatch
Trendlyne Marketwatch
21 Jun 2022
Market closes higher, Hindustan Zinc falls as LME Zinc falls to a record low

Trendlyne Analysis

Nifty 50 closed 1.9% higher with the volatility index, Nifty VIX, falling by 5.7%. Indian indices extended their gains after snapping their six-day losing streak on Monday. European stocks follow the global trend and trade higher than Monday’s levels. Most major Asian indices closed higher, tracking the US indices futures, which is also trading in the green. The Chinese index, Shanghai SE Composite closed lower as investors keep an eye on the Covid breakouts in some parts of the country that may result in another wave of lockdowns. Crude oil rises as tight supply concerns outweigh slow economic growth induced by the aggressive rate hikes by the central banks.

Nifty Smallcap 100 and Nifty Next 50 closed deep in the green, following the benchmark index. Nifty Smallcap 100 fell 3.2% on Monday, despite the Nifty 50 closing in the green. Nifty Media and Nifty Metal closed sharply higher than Monday’s levels. Nifty IT closed deep in the green, tracking the NASDAQ 100 futures, which is trading sharply higher.

The market closed on an upbeat note. Nifty 50 closed at 15,638.80 (288.7, 1.9%) , BSE Sensex closed at 52,532.07 (934.2, 1.8%) while the broader Nifty 500 closed at 13,241.90 (291.2, 2.3%)

Market breadth is ticking up strongly. Of the 1,882 stocks traded today, 1,579 were on the uptrend, and 278 went down.

  • Orient Electric, Procter & Gamble Health, Gujarat Pipavav Port, and Cholamandalam Financial Holdings are trading with higher volumes as compared to Monday.

  • Tata Steel sees a long build-up in its Jun 30 future series as its open interest rises 5.7% with put to call ratio of 0.36.

  • Bank stocks are trading in the green. Stocks like ICICI Bank, State Bank of India, Bank of Baroda, Federal Bank and Punjab National Bank are up more than 3%. The broader sectoral index Nifty Bank is also rising in trade.

  • Sadbhav Engineering hit an all-time low of Rs 13.05 after India Ratings downgraded its credit rating on the company to BB+ from BBB+. The rating agency said there is a deterioration in the company’s liquidity position due to a continuous decline in revenue in FY22. It also expects the company’s project execution to remain sluggish in FY23.

  • GAIL(India)is rising in trade as the Centre plans to monetise its city gas distribution network and green hydrogen assets. The Centre hopes to raise Rs 5,000 crore from this process.

  • Marksans Pharma's Time-Cap Laboratories Inc recalls Kroger Brand aspirin and ibuprofen due to a label packaging issue to meet child resistant packaging requirement. A total of 12 lots containing 2,09,430 units were recalled.

  • Bharat Forge's board of directors approves transfer of the company's stake in Refu Drive GmbH to joint venture company Kalyani Powertrain in a meeting held on Monday.

  • Centre's Ministry of Finance, in its latest Monthly Economic Review, warns of the return of the twin-deficit problem arising from higher commodity prices and increased subsidy burden. The ministry expects there could be a fiscal slippage in FY23.

  • Securities and Exchange Board of India bars asset management companies (AMCs) from selling bundled insurance products with their mutual fund schemes, according to reports. In a letter on Friday to Association of Mutual Funds in India, the market regulators told AMCs to stop this practice for new product launches. AMC companies like HDFC AMC, UTI AMC, and Nippon Life India Asset Management will likely be impacted by this.

  • JK Cement and V Mart Retail touch their 52-week lows of Rs 2,025 and Rs 2,430, respectively. Both stocks are falling for six consecutive days.

  • 3M India is trading with more than 8 times its weekly average trading volume. Procter & Gamble Hygiene & Healthcare, V Mart Retail, The Fertilisers and Chemicals Travancore, and EID Parry (India) are trading at more than four times their weekly average trading volumes.

  • Hindustan Zinc trades lower as LME Zinc falls to a record low on the LME and after floods in the Guangxi province impacted China’s Zinc capacity.

  • ICICI Securities maintains a ‘Buy’ rating on Havells India with a target price of Rs 1,644, indicating an upside of 53.5%. The brokerage remains positive on the company’s prospects due to its distribution expansion, new product launches, and rising investment in research & development. It expects the company’s net profit to grow at a 27.2% CAGR over FY22-24.

  • ICICIDirect downgrades textile stocks such as KPR Mills and Gokaldas Exports to 'HOLD' from 'BUY', and cuts their target price to Rs 635 and Rs 400, respectively. Spike in cotton prices and subdued demand from large US retailers like Target, Gap and Walmart on account of inventory pile-up are key reasons behind this downgrade.

  • Adani Group loses Rs 5.5 lakh crore market cap after the group's listed companies' stocks fell by 30% on average in the sell-of in Indian markets.

  • Media stocks like Zee Entertainment Enterprises, Sun TV Network, PVR, Saregama India, and Network 18 Media & Investments, among others, are rising in trade. The broader sectoral index Nifty Media is also trading in the green.

  • Indian rupee depreciates 6 paise to 78.04 against the US dollar in early trade. All IT stocks are trading in the green, with stocks like Tata Consultancy Services, Infosys, HCL Technologies, Larsen & Toubro Infotech, MindTree, among others, rising by more than 2%. The broader sectoral index Nifty IT is also rising in trade.

  • Suven Life Sciences' stock rises the most in 11 weeks as its board approves a fund raise through rights issue of equity shares.

  • Nifty 50 sees a long build-up in its Jun 30 future series as its open interest rises 1.1% with put to call ratio of 1.05.

  • Consumer Durables stocks like Titan Company, Havells India, Voltas, Dixon Technologies (India), Aditya Birla Fashion and Retail, Whirlpool of India, among others, are rising in trade. The broader sectoral index BSE Consumer Durables is also trading in the green.

  • Happiest Minds Technologies touches a 52-week low of Rs 785.5, as Morgan Stanley Investment Funds Emerging Leaders Equity Fund sold 13.1 lakh shares of the company for Rs 800 per share through a bulk deal on Monday.

  • KEC International bags orders worth Rs 1,092 crore across its various business verticals. The company secures orders for transmission & Distribution in India, the Middle East and the Americas. Its civil business segment bags orders in the railways, residential, industrial, and defence segments in India.

Riding High:

Largecap and midcap gainers today include Adani Total Gas Ltd. (2,382.90, 19.79%), JSW Energy Ltd. (211.35, 8.11%) and Adani Transmission Ltd. (2,215.05, 7.51%).

Downers:

Largecap and midcap losers today include Supreme Industries Ltd. (1,739.90, -2.61%), Kansai Nerolac Paints Ltd. (374.55, -1.96%) and Varun Beverages Ltd. (738.70, -1.81%).

Movers and Shakers

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

Top high volume gainers on BSE included EID Parry (India) Ltd. (546.20, 17.69%), Gujarat State Fertilizer & Chemicals Ltd. (139.10, 17.48%) and Asahi India Glass Ltd. (516.10, 16.20%).

Top high volume losers on BSE were Brightcom Group Ltd. (40.50, -4.93%), KPR Mill Ltd. (504.45, -3.89%) and V Mart Retail Ltd. (2,490.90, -2.29%).

3M India Ltd. (19,987.40, 2.01%) was trading at 9.1 times of weekly average. Procter & Gamble Hygiene & Healthcare Ltd. (13,337.70, 0.35%) and IDFC First Bank Ltd. (30.40, 1.84%) were trading with volumes 7.3 and 6.1 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

12 stocks tanked below their 52 week lows.

Stocks making new 52 weeks lows included - Bharat Petroleum Corporation Ltd. (301.20, 1.74%) and IDFC First Bank Ltd. (30.40, 1.84%).

15 stocks climbed above their 200 day SMA including EID Parry (India) Ltd. (546.20, 17.69%) and Gujarat State Fertilizer & Chemicals Ltd. (139.10, 17.48%). 4 stocks slipped below their 200 SMA including Crisil Ltd. (3,030.95, -0.85%) and Au Small Finance Bank Ltd. (611.75, -0.39%).

 
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The Baseline
20 Jun 2022
Earning in dollars as rupee depreciates: five companies with high exports
By Abhiraj Panchal

With the Indian rupee depreciating against the dollar, we take a look at companies with high exposure to the international markets, giving them a relative cushion in revenues. We identified companies that meet three key criteria - high export revenues, a high Trendlyne Durability Score and a high Piotroski score.

  1. UPL: This agrochemicals company’s revenue grew 19.5% YoY to Rs 46,240 crore, out of which exports contributed 87.7% of total revenue. This company is currently in the PE Buy zone and has a high piotroski score. It also has a high Durability score of 80. In FY22, the company’s total revenue rose 19.4% to Rs 46,521 crore. The majority of revenue comes from Latin America (Rs 18,040 crore), followed by North America (Rs 7,810 crore), then Europe (Rs 6,890 crore) and the rest of the world (Rs 7,810 crore). The growth in these regions was driven by herbicides and insecticides. The company plans to make new investments in 22 countries which will lead to 1.5-3% CAGR revenue growth over next five years. 

  2. Tata Consultancy Services: This IT services company’s revenue grew 17.9% YoY to Rs 1.95 lakh crore  in FY22, and exports contributed nearly 95% to the total. Majority of revenues come from the Americas (52.2%), then Europe (31.9%) and the rest from Asia Pacific and West Asia. Although the stock is currently in the ‘PE Sell zone’, according to Trendlyne’s Check Buy or Sell feature, it has a high Piotroski score of 7 and high financial strength with a  Durability score of 70. Key themes expected to drive client spending, and continued business momentum (which will drive revenue growth) for the company in FY23 are new products and services aligned to sustainability, and AI-led transformation of IT/business operations.

  3. Dr. Reddy's Laboratories: In FY22, this pharmaceutical company’s revenues grew 13.1% YoY to Rs 21,545.2 crore and profits grew 11.8% YoY to Rs 2,182.5 crore. Exports generated $1.8 billion, which made up 64% of its total revenue. The company’s biggest market is in North America, which contributed $987 million to its revenue in FY22. This drug maker lies in the ‘PE Neutral Zone’ and is financially robust with a high Piotroski score and a Durability score of 75.

In FY22, the company launched 20 products in the US and plans to launch another 20 in FY23. The management says it has a robust pipeline of 90 ANDAs (abbreviated new drug applications), which it expects would support its long-term aspirations in the US. In Europe, the company launched 34 new products during FY22 and expects strong growth in sales in FY23. 

  1. HCL Technologies: This IT company earns more than 90% of its total revenue of Rs 86,718 crore from exports in FY22. Nearly 62% of its revenue comes from the Americas, 29.1% from Europe and the remaining 8.9% from the rest of the world. According to the company’s FY21 annual report the company’s exports made up 97% of its total revenue. HCL Technologies signed a total of 52 significant large services and product deals in FY22, led by life sciences and healthcare, technology, financial services, manufacturing and oil & gas. All round growth across verticals and geographies YoY was led by Telecom, Media, Publishing & Entertainment, Lifesciences & Healthcare, Manufacturing, Technology & Services, and Financial Services. The stock is in Trendlyne’s ‘PE Neutral Zone’ with a Piotroski score of 8 and a Durability score of 95.

  2. PI Industries: In FY22, the company’s revenue grew 15.8% YoY to Rs 5,299.5 crore and profit grew 14.3% YoY to Rs 843.8 crore. Exports contributed 75.3% to its total revenue. The company’s exports rose 20% YoY to Rs 3,990.2 crore, on new customer additions and product launches. The company lies in Trendlyne’s  ‘PE Buy Zone’ with a Piotroski score of 7 and a Durability score of 70. The company added 8 new clients during FY22 and its export order book at the end of March 2022 stood at $1.4 billion. It guided a 20% growth in exports in FY23, driven by new and green technology products. The company also increased its capex to Rs 500 crore for FY23 from Rs 300 crore in FY22.

 
Trendlyne Marketwatch
Trendlyne Marketwatch
20 Jun 2022
Market close higher, Axis Bank hits 52-week low

Trendlyne Analysis

Indian indices snapped their six-day losing streak and closed in the green. European stocks trade higher than Friday’s levels amid mixed global cues. Major Asian indices closed mixed, tracking the US indices, which also closed mixed on Friday. The Dow Jones closed marginally lower while the tech-heavy NASDAQ 100 rose 1.2%. The S&P 500 lost 5.8% last week, its biggest weekly loss in two years. Investors continue to monitor elevated inflation levels globally and the effect of aggressive interest rate hikes by the central banks on economic growth. Crude oil falls sharply amid demand concerns on the back of slow economic growth induced by interest rate hikes.

Nifty Midcap 100 and Nifty Smallcap 100 closed deep in the red, despite the benchmark index closing in the green. Nifty Bank and Nifty Realty, which opened higher than Friday’s levels, closed in the red. Nifty IT closed in the green, following the tech-focused NASDAQ 100, which closed higher on Friday.

Nifty 50 closed at 15,350.15 (56.7, 0.4%) , BSE Sensex closed at 51,597.84 (237.4, 0.5%) while the broader Nifty 500 closed at 12,950.75 (-44, -0.3%)

Market breadth is highly negative. Of the 1,906 stocks traded today, 234 were in the positive territory and 1,648 were negative.

  • Brightcom Group, Gland Pharma, Relaxo Footwears, and Orient Electric are trading with higher volumes as compared to Friday.

  • Vedanta sees a short build-up in its Jun 30 future series as its open interest rises 11% with put to call ratio at 0.49.

  • Stocks like Persistent Systems, Pidilite Industries, Rashtriya Chemicals & Fertilizers, Angel One, and Varroc Engineering are in the oversold zone according to the technical indicator relative strength index or RSI.

  • Axis Bank falls to a new 52-week low of Rs 624.45 per share. The stock is falling for last two consecutive sessions.

  • National Aluminium Co is falling as ICICI Securities downgrades its rating on the stock to ‘Sell’ from ‘Reduce’ with a target price of Rs 52. The brokerage cites possible demand-supply surplus in FY23-24, price and delay in the current projects leading to cost overrun for downgrading its rating on the stock. It also cut its FY23 profit estimates for the company by 37% to Rs 1,658.6 crore.

  • Delta Corp falls the most in four weeks after Rakesh Jhunjhunwala sells 57 lakh equity shares for Rs 96 crore in the open market, according to reports. Jhunjhunwala previously sold 60 lakh and 15 lakh shares between June 1-14, bringing his holding down to 3.36% from 6.17%. After the current reported transaction, his holding will come down to 1.2%.

  • Alkem Laboratories is rising despite its St. Louis manufacturing facility receiving three observations after the conclusion of the US FDA’s facility inspection. The inspection was conducted from June 6 -17.

  • Paint companies' stocks like Asian Paints, Berger Paints, and Kansai Nerolac rise in trade today as crude oil falls to a three-week low. Nearly 50% of raw material of paint makers comes from crude oil derivatives.

  • IndusInd Bank and Amara Raja Batteries touch their 52-week lows of Rs 780.1 and Rs 446 respectively. Both stocks trade lower for eight consecutive sessions.

  • ITI is trading with more than 15 times its weekly average trading volume. The Fertilisers and Chemicals Travancore, Gujarat Pipavav Port, Orient Electric, and Vedanta are trading at more than three times their weekly average trading volumes.

  • Greenlam Industries is rising after its board of directors approve a preferential issue of Rs 195 crore for a 4.97% stake in the company to Asian Paints' promoter entity Smiti Holding and Trading.

  • FMCG stocks like Hindustan Unilever, ITC, Nestle India, Dabur India, Godrej Consumer Products, United Breweries, among others, are rising in trade. The broader sectoral index Nifty FMCG is also trading in the green.

  • JP Morgan initiates coverage on Life Insurance Corp of India with an ‘Overweight’ rating and a target price of Rs 840, indicating an upside of 29%. The brokerage finds the company’s current valuation attractive and believes that the markets are mispricing the stock.

  • Adani Wilmar hits the lower circuit during trade as it cuts edible oil prices by Rs 10, after the Centre reduces import duties on the commodity on Saturday.

  • Energy stocks like Reliance Industries, Bharat Petroleum Corp, Power Grid Corporation of India, Tata Power Co, NTPC, Oil and Natural Gas Corp, among others, are falling in trade after oil prices fell 5% to a three-week low on Friday. The broader sectoral index Nifty Energy is also trading in the red.

  • Axis Securities maintains a ‘Buy’ rating on Dalmia Bharat with a target price of Rs 1,635, indicating an upside of 30%. The brokerage expects the company’s market share to grow going forward on the back of production capacity expansion, cost optimization, and robust demand. It expects the company’s revenue to grow at a 14.1% CAGR over FY22-24.

  • Shares of Sun Pharmaceutical Industries rise as Jefferies upgrades the stock to 'Buy' rating from 'underperform', according to reports. It set a price target of Rs 910, an upside of 12%. The brokerage believes that the next two years' growth will be driven by Ilumya, Cequa and Winlevi while the dependance on US generics is among the lowest in the pharmaceutical sector.

  • All metals stocks are trading in the red. Stocks like Hindustan Zinc, Tata Steel, Vedanta, Hindalco Industries, NMDC, National Aluminium Co or NALCO,among others, are down by more than 3%. The broader sectoral index Nifty Metal is also falling in trade.

  • Vodafone Idea's board to consider raising Rs 500 crore by issuance of equity shares and/or convertible warrants on a preferential basis to one or more entities of Vodafone Group. The meeting is scheduled for Wednesday.

  • Indian rupee surges 9 paise to Rs 77.96 against the US dollar in early trade. IT stocks like Tata Consultancy Services, Infosys, HCL Technologies, and Wipro also rise in trade today.

  • Vedanta invites bids for its Tuticorin-based smelter--Sterlite Copper--which is shut since mid-2018. The smelter accounted for 40% of India’s copper output before it was shut over alleged violations of environmental norms. The last date for submission of an expression of interest is July 4. Plant units, along with oxygen-generating facilities as well as residential homes, are a part of the sale offer.

Riding High:

Largecap and midcap gainers today include Pidilite Industries Ltd. (2,106.65, 5.36%), Godrej Consumer Products Ltd. (759.00, 4.65%) and Hindustan Unilever Ltd. (2,195.90, 4.05%).

Downers:

Largecap and midcap losers today include Vedanta Ltd. (230.45, -12.69%), Bandhan Bank Ltd. (274.05, -11.71%) and Oil India Ltd. (227.00, -10.86%).

Movers and Shakers

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

Top high volume gainers on BSE included ITI Ltd. (93.00, 12.52%) and DCB Bank Ltd. (75.10, 5.33%).

Top high volume losers on BSE were Vedanta Ltd. (230.45, -12.69%), Rain Industries Ltd. (135.65, -10.08%) and Hindustan Copper Ltd. (84.35, -9.40%).

Gujarat Pipavav Port Ltd. (74.90, -2.60%) was trading at 5.4 times of weekly average. Orient Electric Ltd. (247.75, -3.09%) and Tasty Bite Eatables Ltd. (8,184.00, -6.91%) were trading with volumes 5.1 and 4.0 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

125 stocks tanked below their 52 week lows.

Stocks making new 52 weeks lows included - Amara Raja Batteries Ltd. (445.30, -3.49%) and Astral Ltd. (1,607.65, -1.52%).

5 stocks climbed above their 200 day SMA including Adani Green Energy Ltd. (1,743.65, 1.89%) and Adani Transmission Ltd. (2,060.25, 1.36%). 24 stocks slipped below their 200 SMA including Bandhan Bank Ltd. (274.05, -11.71%) and Oil India Ltd. (227.00, -10.86%).

 
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The Baseline
17 Jun 2022
Five Interesting Stocks Today
  1. Medplus Health Services: This healthcare supplies company, which listed on the exchanges in December 2021, hit a lifetime low of Rs 708 in share price in the last week. The stock lost close to 16% in the previous eight trading sessions and is currently trading below its IPO issue price of Rs 796. A combination of the competitive landscape in the pharmacy segment and weakQ4FY22 results led to the price fall.

However, brokerages still have a positive outlook on the company. As a result, it shows up in this screener which lists stocks with high analyst ratings and have an upside of at least 20% from their current price.

The pharmacy segment (both offline and e-commerce) is under intense competition from companies from different industries. While peers like PharmEasy are expanding aggressively in this segment, hospital companies like Apollo Hospital Enterprises and Aster DM Healthcare are also after market share in the pharmacy space. Apollo Hospital Enterprises’ arm, Apollo Healthco boasts of a larger network compared to Medplus, With a total store count of 4,529 against Medplus’ 2,748 as of March 2022. However, Medplus is expanding its network at a faster clip, adding 667 stores in FY22 (on a net basis). Apollo Healthco added 411 net new stores in FY22. Both companies’ margins fell in Q4FY22 as a result of increased discounts to gain market share from the unorganized sector. Medplus’ EBITDA margin fell 120 bps YoY to 6.8% in Q4FY22. With 27% of the total stores being less than 12 months old, improvement in margins from these new additions could help ease the margin pressure for Medplus.

  1. JSW Steel: This steel maker’s output in May rose 22% YoY to 16.67 lakh tonnes. However, with the mayhem in markets over the past few trading sessions, the stock rose only marginally by 0.2%, despite strong volume growth. In fact, this stock is down over 30% from its lifetime high seen in April and is currently trading less than 5% away from its 52-week low. But, mutual funds are optimistic, increasing their holdings in JSW Steel in the past month.

The steep fall in the company’s share price over the past many trading sessions is not entirely due to the choppy market. There is also the weak outlook and muted Q4FY22 results. On May 23, the Centre imposed export duties on iron ore and some steel intermediaries to curb rising prices in the domestic market. Exports contributed to 28% of total volumes in FY22. This export duty imposition comes at a time when the company’s margins are already under pressure. Operating profit margin fell 11.8 percentage points YoY in Q4FY22 to 19.6% on the back of high input costs. Going forward, a fall in coking coal prices can help the company sustain its margins. Trendlyne’s Forecaster estimates a 10% revenue growth in FY23. This is a muted forecast, considering that JSW’s revenue grew 87% YoY to Rs 1,47,902 crore in FY22.

Brokerages downgraded this company’s stock on the back of falling margins in Q4FY22 and new export duty imposition by the Centre. While Motilal Oswal downgraded its rating from ‘Buy’ to ‘Neutral’, Prabhudas Lilladher has a ‘Reduce’ rating. 

  1. G R Infraprojects: This roads & highway builder’s stock was doing well on Monday morning when it was trading almost 28X its weekly average trading volumes. However, the stock plunged 18% in the next three consecutive sessions, after news broke of raids conducted by the Central Bureau of Investigation (CBI) at various company locations. It was alleged that there were anomalies found in an Assam highway project.

On June 14, 2022, its wholly owned-subsidiary GR Bandikui Jaipur Expressway executed the concession agreement with the National Highways Authority of India worth Rs 1,368 crore. The stock touched a 52-week low on the same day. The stock fell further on Wednesday when the company’s exchange filing revealed that the CBI filed an FIR against the company and some of its officials under the Prevention of Corruption Act. Despite these developments, the stock closed 2% above on Thursday, even though the Nifty fell below the 15,400 mark on Thursday.

  1. Tata Communications: This telecommunication service provider’s stock fell 7% in intra-day trade to touch a 52-week low of Rs 856 on Wednesday. The stock fell after its investor day 2022 event held on Tuesday, as the company’s management did not give guidance or any outlook on its revenue growth for FY23. This did not enthuse investors and brokerages. The company’s revenue conversion cycle has slowed down due to deal closure delays caused by the shortage of chips and component supplies.

The company stock also made it to this screener which shows broker downgrades in price or recommendations in the past month. Its target price was downgraded by ICICI Securities after its Investor Day 2022 event. The brokerage still has a ‘Buy’ rating on the stock.

  1. Varun Beverages: This soft drink bottler’s stock rose over 5% in intra-day trade and touched an all-time high of Rs 805.6 on Wednesday. The stock surged by around 25% over the past three months, in an otherwise weak market. It shows up on a screener with companies whose shares rose by more than 10% in over three months, with rising net profit growth. The stock has been rising on expectations of robust profitability in Q1FY23.

Hem Securities expects the company to benefit from the strong recovery in consumer demand led by the opening up of offices and colleges, increasing travel demand, rising out-of-home consumption, and traction in new products. 

The company has been trading at higher levels since it posted its Q4FY22 results, with its profit rising 96.6% YoY to Rs 254.2 crore and revenue by 26.2% YoY to Rs 2,827.5 crore helped by a scorching summer. The management believes it can deliver healthy profit growth in the coming quarters as the economy recovers. In FY23, the management expects high raw material and commodity prices to increase margin pressure. To counter this, Varun Beverages undertook advanced stocking for the summer season. The management expects to achieve 1.5X sales volume in Q1FY23 compared to Q4FY22.

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

 
Trendlyne Marketwatch
Trendlyne Marketwatch
17 Jun 2022
Market closes lower, Pharma stocks trade in the red

Trendlyne Analysis

Nifty 50 closed in the red and extended its losing streak to six days on a volatile day of trade. European stocks trade higher, following the US indices futures, which are trading in the green. Major Asian indices closed lower, tracking the US indices, which closed deep in the red on Thursday. The tech-heavy index, NASDAQ 100 fell 4% and S&P 500 closed 3.3% lower. Investors remain fearful of the impact of aggressive rate hikes by central banks on the global economy. Brent crude oil falls marginally amid demand concerns due to the possibility of slow economic growth induced by rate hikes globally. In the last week, foreign investors have sold over Rs 14,418.7 crore worth of shares of Indian companies.

Nifty Next 50 and Nifty Smallcap 100 closed in the red, following the benchmark index. Nifty Pharma and Nifty FMCG closed lower than Thursday’s levels. Nifty IT closed in the red, tracking the tech-focused NASDAQ 100, which fell sharply lower on Thursday.

Nifty 50closed at 15,293.50 (-67.1, -0.4%), BSE Sensexclosed at 51,360.42 (-135.4, -0.3%) while the broader Nifty 500closed at 12,994.75 (-94.5, -0.7%)

Market breadth is overwhelmingly negative. Of the 1,865 stocks traded today, 501 were on the uptrend, and 1,334 went down.

Riding High:

Largecap and midcap gainers today include Sun TV Network Ltd. (433.05, 5.78%), Hindustan Aeronautics Ltd. (1,898.70, 5.65%) and Bajaj Finance Ltd. (5,419.55, 2.57%).

Downers:

Largecap and midcap losers today include Adani Total Gas Ltd. (2,149.05, -9.57%), Bajaj Holdings & Investment Ltd. (4,471.70, -6.36%) and Titan Company Ltd. (1,936.45, -6.04%).

Volume Rockets

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

Top high volume gainers on BSE included Delta Corp Ltd. (184.20, 12.39%), KIOCL Ltd. (190.10, 12.02%) and Sun TV Network Ltd. (433.05, 5.78%).

Top high volume losers on BSE were Adani Total Gas Ltd. (2,149.05, -9.57%), Titan Company Ltd. (1,936.45, -6.04%) and Avenue Supermarts Ltd. (3,460.55, -6.03%).

Indus Towers Ltd. (208.00, 0.73%) was trading at 6.9 times of weekly average. Hindustan Aeronautics Ltd. (1,898.70, 5.65%) and Honeywell Automation India Ltd. (32,856.90, -0.23%) were trading with volumes 6.4 and 6.2 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

1 stock hit their 52-week highs, while 133 stocks were underachievers and hit their 52-week lows.

Stock touching their year highs included - Hindustan Aeronautics Ltd. (1,898.70, 5.65%).

Stocks making new 52 weeks lows included - Akzo Nobel India Ltd. (1,701.60, -2.49%) and Amara Raja Batteries Ltd. (461.40, -0.33%).

7 stocks climbed above their 200 day SMA including Asahi India Glass Ltd. (464.20, 8.51%) and Jyothy Labs Ltd. (153.60, 3.99%). 19 stocks slipped below their 200 SMA including Linde India Ltd. (2,843.35, -5.18%) and Vinati Organics Ltd. (1,851.90, -4.47%).