My Newsfeed

logo
The Baseline
29 Jul 2022
Five Interesting Stocks Today
  1. Tanla Platforms: This internet software services company’s stock is down almost 57.7% over the past three months. The stock crashed 20% on the bourses on Tuesday locking into the lower circuit after a dismal Q1 performance and hit a 52-week low of Rs 731. The company’s profit fell both on a sequential (28.6%) and YoY basis (3.9%) to Rs 100 crore, and hence shows up in the screener of companies that declared results in the past week with declining net profit.

Although both profit and margins are down in Q1FY23, the CEO’s message remains positive because of upcoming projects in its platform segment in Q2FY23. He also talks about the problems faced in Q1FY23 - the company’s margins were hit because of internal and external factors of pricing issues with select customers and the fall of the euro against the US dollar.

Brokerages like YES Securities and HDFC Securities maintain a ‘Buy’ rating on the stock. They believe that the seasonally weak quarter will not impact revenue growth for FY23. HDFC Securities expects the Platform business to drive revenue CAGR of 35% for Tanla. The management is positive of maintaining the margin in the range of 19%-20% in Q2 and Q3FY23.

The company also believes that their recent deals with VI and Truecaller will begin to show results by the next quarter which will boost revenue and ease out margins. Right now, the stock is underperforming its industry by 42% in the past 90 days. It’ll be interesting to see how the company bounces back in the next quarter given the fear of recession looming around in the American and European economies.

  1. Craftsman Automation:This auto ancillary company’s stock touched a 52-week high on Wednesday, two days after its Q1FY23 results. The stock outperformed the Nifty 50 by over 15% in the last one month alone.

Craftsman Automation’s net profit rose nearly 2.4X to Rs 55.6 crore led by its revenue rising over 55% YoY to Rs 677.1 crore in Q1FY23. Although there was a low base in Q1FY22, a healthy revival in demand from OEMs (original equipment manufacturers) also helped boost its profit. In fact, the company’s Q1FY23 revenue beat Trendlyne Forecaster’s estimates by 8%. Craftsman manufactures critical engine and transmission components, especially for the medium and heavy commercial vehicle segment. Though it does cater to the two-wheeler and passenger vehicle segment as well, more than 70% of its annual revenue comes from commercial vehicles (54%) and tractor makers (18%).

Listed commercial vehicle (CV) makers like Ashok Leyland, Eicher Motors and Mahindra & Mahindra crossed pre-pandemic wholesales levels in Q1FY23. However, Tata Motors’ CV wholesales were still at 75% of the pre-Covid figure, although they rose 2X on a YoY basis in Q1FY23. Based on these positive trends in wholesales and a rebound in industrial activity, Crisil recently upgraded the credit rating of Craftsman’s long-term loans to A+ from A, while its outlook remained ‘stable’. Consensus estimates from Trendlyne’s Forecaster shows that revenues of this company may grow close to 20% in FY23, in line with the management’s commentary. It’s no surprise that the consensus among analysts is a ‘Strong Buy’ for this auto component player.

  1. Zomato: This restaurant aggregator and food delivery company’s stock fell over 23% in two days at the beginning of the week after the one-year lock-in period on the shares held by its pre-IPO (initial public offering) investors ended. The lock-in period applies to institutional investors who were allotted shares just before the IPO. Though the stock recovered about 8% of its losses by Thursday, it is down 73% from its all-time high of Rs 169 seen on November 16, 2021, and trades below its IPO issue price of Rs 76.

The company is backed mainly by private equity and venture capital funds and has no listed promoter. A diverse shareholding could’ve contributed to the sell-off after the one-year freeze on pre-IPO investors’ holding ended. The sell-off continued on Tuesday with Zomato's pre-IPO investor Moore Strategic Ventures selling its entire stake for Rs 187 crore.

Despite a sharp fall in Zomato’s share price, foreign brokerages like Jefferies and Credit Suisse maintain a positive outlook on the company, according to reports. Both brokerages’ target price for the stock indicates an upside of over 100%. Credit Suisse maintained its ‘outperform’ rating with a target price of Rs 90 as it believes the company is on a “clear road” to profitability with its existing customers driving the food business. However, investors continue to reassess the profitability timeline post its acquisition of Blinkit for Rs 4,447 crore in July. Zomato’s Q1Y23 results are to be declared on Monday and may throw some light on the company’s road to profitability.

  1. Tata Steel: This steel maker’s stock was very volatile and closed 2.3% lower on Tuesday after it announced its Q1FY23 results. Elevated coking coal prices and the export duty on steel impacted the overall performance of the company in Q1. Its net profit fell 12.8% to Rs 7,765 crore as raw material costs rose 56.7% YoY. Revenue, on the other hand, grew 18.8% YoY to Rs 63,430 crore driven by higher steel realisations in India and Europe. Even though the company’s profit fell YoY, it managed to beat Trendlyne’s Forecaster profit estimates by 26.1%.

The silver lining in Q1 for the company was its European business achieving its highest quarterly EBITDA of 621 million pounds (or Rs 6,037 crore), up more than 2X YoY. This made up for the 39% YoY fall in the Indian business’ EBITDA. The margin expansion was driven by long-term contracts and a healthy product mix.

This is surprising considering the European business dragged the overall performance of the company for many quarters. EBITDA per tonne jumped nearly 4.3X YoY to Rs 28,220. In India, even though its steel deliveries marginally fell due to a reduction in exports, revenue per tonne rose 11.4% QoQ aided by a robust marketing network.

Going forward the management expects the rest of FY23 to be challenging for the Indian steel industry due to the Russia-Ukraine war, elevated input costs and imposition of export duty. However, sales volumes and margins are expected to improve from H2FY23 onwards as demand may improve  and rising raw material costs ease, the management added. The company anticipates a rise in demand from H2FY23 as the monsoon season ends. It expects a revival in the automobile sector and the Centre’s increased spending on infrastructure to boost steel demand.

  1. Navin Fluorine International: This chemical company rose 11.1% on Monday after announcing its Q1FY23 results. The surge in its stock price was mainly due to the company’s Q1FY23 EBITDA margin expanding 110 bps YoY to 24.9%. Margins improved due to price hikes and a change in the product mix towards high-margin products. The company’s net profit grew 33.1% YoY to Rs 74.4 crore and revenue rose 21.7% YoY to Rs 397.5 crore. 

However, it missed Trendlyne’s Forecaster revenue and profit estimates by 6.4% and 3.9%, respectively. The revenue growth was driven by the speciality chemicals and high-performance products (HPP) segments. The HPP segment involves mostly the production of refrigerant gas and inorganic fluorides. The company also shows up on this screener that has companies outperforming their industries over the past 90 days. 

The company’s margin expansion beat the street’s expectation, according to Edelweiss. Its margin rose amid concerns over margin pressure faced by chemical companies in India due to rising fuel costs. Surprisingly, the company’s specialty chemicals and HPP segments derive a majority of their revenue from the Indian market. According to the company, repeat orders drove the speciality chemicals segment’s revenue growth, and higher volume and better realisations drove the HPP segment’s revenue growth.

Going forward, the management expects strong demand for fluorine-based specialty chemicals in FY23. Motilal Oswal expects the demand for fluorine from the pharmaceutical and agriculture industries in the coming quarters. The company plans to expand its product portfolio through capacity expansion and new product launches to meet rising demand over the long term.

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

 
T
Trendlyne Marketwatch
29 Jul 2022
Market closes higher, ICICI Direct keeps 'Buy' rating on Maruti Suzuki

Trendlyne Analysis

Nifty 50 rose over 220 points and closed at a three-month high, with the volatility index, India VIX, falling below 17%. The Nifty 50 closed above the 17,100 mark and ended the session higher than its 200-day simple moving average or SMA. European stocks traded higher as Eurozone’s GDP rose 0.7% in the second quarter, topping analysts’ expectations. However, Eurozone inflation hits a record high of 8.9% in July.

Major Asian indices closed mixed despite the US indices closing higher on Thursday. The tech-heavy index, NASDAQ 100, rose 0.9% while the S&P 500 closed 1.2% higher. US GDP falls 0.9% in Q2CY22 and shrinks for a second consecutive quarter, which is one of the common criteria for a recession. This fall in GDP may push the US Federal Reserve to re-assess the aggressive rate hikes going forward. 

Nifty Smallcap 100 and Nifty Midcap 100 closed in the green, following the benchmark index. Nifty Metal and Nifty Auto closed higher than Thursday’s levels. Nifty IT closed sharply higher, tracking the NASDAQ 100, which closed in the green on Thursday.

Nifty 50closed at 17,158.25 (228.7, 1.4%), BSE Sensexclosed at 57,570.25 (712.5, 1.3%) while the broader Nifty 500closed at 14,665.65 (196.6, 1.4%)

Market breadth is in the green. Of the 1,884 stocks traded today, 1,187 showed gains, and 644 showed losses.

  • Chemplast Sanmar, Cholamandalam Financial Holdings, Zydus Wellness, and Procter & Gamble Hygiene & Healthcareare trading with higher volumesas compared to Thursday.

  • Sun Pharma reports an increase in net profit by 42.7% YoY to Rs 2,060.8 crore, against a net loss of Rs 2,277.2 crore in Q4FY22. Expenses increase 14% YoY causing EBITDA margin to fall 190 bps to 26.8%. The management continues to focus on expanding the specialty business globally and improve its market share.

  • Ashok Leyland is rising as it posts a net profit of Rs 5.3 crore in Q1FY23 compared to a loss of Rs 273.9 crore last year. The softening of steel prices along with a more than 2X YoY rise in revenue aids profit growth. Revenue grows on the back of robust volume growth in the medium and heavy commercial vehicles (MHCV) segment. The company’s MHCV market share in Q1 rises by 300 bps YoY to 30%. Revenue from the commercial vehicle segment rises 2.3X YoY.

  • Deepak Fertilisers & Petrochemicals' Q1FY23 net profit rises 233.5% YoY to Rs 435.7 crore as its margins improve. EBITDA margins rise 910 bps YoY to 24.3%. Increase in revenue of chemicals segment by 59.4% YoY to Rs 3,031.1 crore aids revenue growth.

  • All commodity stocks are trading in the green. Stocks like UltraTech Cement, Oil and Natural Gas Corp, JSW Steel, NTPC, among other are up by 1.5%. The broader sectoral index Nifty Commodities is also rising in trade.

  • HDFC is rising as its Q1FY23 net profit is up 22% YoY to Rs 3,668.8 crore. Net interest income rises 7.8% YoY as assets under management also increase 17% YoY to Rs 6.7 lakh crore. The management says that despite the rate hikes, demand for home loans remains strong with 92% of home loan applications coming in through digital channels.

  • Glenmark Pharmaceuticals’ US arm receives US FDA approval for its Norethindrone Acetate and Ethinyl Estradiol Capsules. These drugs, which are used as contraceptives, have a market size of $ 85.9 million.

  • PNC Infratech is rising as its signs a concession agreement with the National Highways Authority of India for a hybrid annuity mode project worth Rs 864 crore. The project involves the upgradation of an existing road to a four-lane bypass in Hardoi district of Uttar Pradesh.

  • GMM Pfaudler rises as its Q1FY23 net profit jumps 17.2X YoY to Rs 44.5 crore. Its revenue is also up 34% YoY with overseas revenue increasing 32%. The board also approves the acquisition of 100% stake in Hydro Air Research Italia for 4.96 million euros.

  • ICICI Direct maintains its ‘Buy’ rating on Maruti Suzuki India with a target price of Rs 10,000. This indicates an upside of 15%. The brokerage believes the company is well-placed to capitalise on the growing demand for passenger vehicles and sport utility vehicles in India. It also sees the company’s robust order book and encouraging customer responses towards its new product launches as key positives. The brokerage expects the company’s net profit to grow at a CAGR of 63.5% over FY22-24.

  • TVS Motor Co rises and touches an all-time high of Rs 953 as it is back in black with a net profit of Rs 305.4 crore in Q1FY23 against a loss of Rs 10.6 crore in Q1FY22. It missed Trendlyne’s Forecaster estimate by 1.5%. Revenue is up 56% YoY with revenue from automotive vehicle and parts rising 57%.

  • GMM Pfaudleris trading with more than 20 times its weekly average trading volume. Westlife Development, Finolex Cables, The Fertilisers and Chemicals Travancore, and SBI Life Insurance Company are trading at more than five times their weekly average trading volumes.

  • Punjab National Bank is falling as its net profit falls 70% YoY to Rs 308.4 crore as provisions for non-performing assets (NPAs) rise 48% YoY. The asset quality of the bank fell as gross and net NPA falls 306 bps and 156 bps YoY, respectively. However, net interest income rises 4.3% YoY in Q1FY23.

  • Vedanta is rising as its Q1FY23 net profit grows despite high production costs as power and fuel costs rise 2.3X YoY to Rs 8,953 crore. Net profit rises 4.7% YoY to Rs 4,421 crore. Revenue grows 35.9% YoY on the back of higher sales volume and strategic hedging gains. The domestic zinc and lead segment drives revenue growth, as it rises 54.6% YoY to Rs 8,066 crore. However, high input costs dent margins, as the operating margin falls by 8.3 percentage points YoY to 26.4%

  • Yes Bank’s board to consider raising funds today, according to reports. Private Equity firms like Carlyle and Advent are looking for a 10% stake each as a part of funding.

  • IFB Industries posts its first profit in two quarters in Q1FY23 at Rs 1.9 crore. This was helped by the company posting an EBITDA of Rs 34.4 crore during the quarter compared to an operating loss of Rs 31.6 crore in Q1FY22. Revenue from home appliances and engineering segments aided the company's revenues to grow 86.6% YoY to Rs 1,067.4 crore.

  • All metal stocks are trading in the green. Stocks like JSW Steel, Tata Steel, Hindalco Industries, Jindal Steel & Power, Steel Authority of India (SAIL), among others are up by more than 2.5%. The broader sectoral index Nifty Metal is also rising in trade.

  • Dr. Reddy’s Laboratories is falling despite net profit surging more than 3X YoY to Rs 1,189 crore. Profit jumps as the company recognizes Rs 563 crore in Q1 as other income from a settlement agreement with Indivior Inc. It received $ 50 million or (Rs 397.3 crore) out of the total $ 72 million which is receivable by March 31, 2024. Revenue rises 6% YoY driven by new product launches across businesses and divestment of a few non-core brands in India. However, high commodity prices hurt the company’s margins, gross margin falls 230 bps YoY to 49.9%.

  • Indus Towers Managing Director and Chief Executive Officer Bimal Dayal resigns on Thursday to pursue opportunities outside the company. His relieving date is under discussion.

  • Kalpataru Power Transmission (KPTL) receives new orders worth Rs 1,842 crore on a consolidated basis for metro rail electrification, railway projects and other overseas projects. Its subsidiary, JMC Projects, also receives orders worth Rs 631 crore in its buildings and factories business. KPTL’s order book now stands at Rs 8,000 crore for the current year.

  • SBI Life Insurance’s Q1FY23 net profit rises 17.8% YoY to Rs 262.8 crore as annualized premium equivalent (APE) rises 80% YoY. Also, the company’s gross written premium (new business premium + renewal premium) is up 35% YoY. With the pandemic effects waning out, the company sees a surge in value of new business premiums (VNB) by 130% YoY. This lead to an improvement in margins by 6.7 percentage points to 30.4%.

Riding High:

Largecap and midcap gainers today include SBI Life Insurance Company Ltd. (1,294.40, 8.64%), Dr. Lal Pathlabs Ltd. (2,303.60, 7.42%) and Tata Steel Ltd. (107.60, 7.22%).

Downers:

Largecap and midcap losers today include Shriram Transport Finance Company Ltd. (1,379.75, -5.56%), Mahindra & Mahindra Financial Services Ltd. (186.70, -5.32%) and Dr. Reddy's Laboratories Ltd. (4,090.35, -3.98%).

Volume Shockers

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

Top high volume gainers on BSE included GMM Pfaudler Ltd. (1,599.40, 19.06%), Route Mobile Ltd. (1,400.60, 13.37%) and Westlife Development Ltd. (584.30, 9.32%).

Top high volume losers on BSE were Intellect Design Arena Ltd. (630.40, -5.47%), Dr. Reddy's Laboratories Ltd. (4,090.35, -3.98%) and Shriram City Union Finance Ltd. (1,941.65, -1.95%).

Sundaram Clayton Ltd. (4,676.75, 2.70%) was trading at 24.4 times of weekly average. Finolex Cables Ltd. (424.55, 6.75%) and HEG Ltd. (1,176.05, 8.18%) were trading with volumes 13.8 and 8.5 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

19 stocks took off, crossing 52-week highs, while 1 stock tanked below its 52-week lows.

Stocks touching their year highs included - Adani Transmission Ltd. (3,109.60, 3.22%), Ashok Leyland Ltd. (149.00, 2.37%) and Blue Dart Express Ltd. (8,587.45, 3.45%).

Stock making new 52 weeks lows included - Sanofi India Ltd. (6335.00, -0.08%).

43 stocks climbed above their 200 day SMA including GMM Pfaudler Ltd. (1,599.40, 19.06%) and Devyani International Ltd. (178.95, 8.22%). 2 stocks slipped below their 200 SMA including Gillette India Ltd. (5,201.30, -0.38%) and Granules India Ltd. (299.65, -0.17%).

 
T
Trendlyne Marketwatch
28 Jul 2022
Market closes higher, Shree Cements’ Q1 profit falls 52% YoY to Rs 315.5 crore

Trendlyne Analysis

Indian indices closed sharply higher, with the volatility index, India VIX, falling significantly. Nifty 50 rose 288 points and closed above the 16,900 mark for the first time since May 5. European indices followed the global trend and traded higher than Wednesday’s levels. Major Asian indices closed higher, tracking the US indices, which closed in the green on Wednesday. US stocks rose after the US Federal Reserve raised the federal funds rate by an expected 75 bps to 2.5%. A 75 bps federal funds hike by the US Fed for two straight months is the steepest rise since the early 1980s. The tech-heavy index, NASDAQ 100, rose 4.3% while the Dow Jones closed 1.4% higher. However, NASDAQ futures traded lower as weak earnings by Meta led to a sharp fall in its share price after trading hours. Crude oil traded higher due to lower crude inventory and recovery in gasoline demand in the US.

Nifty Smallcap 100 and Nifty Midcap 100 closed in the green, following the benchmark index. Nifty Metal and Nifty Energy closed higher than Wednesday’s levels. Nifty IT closed in the green, tracking the NASDAQ 100, which rose 4.3% on Wednesday.

Nifty 50 closed at 16,929.60 (287.8, 1.7%) , BSE Sensex closed at 56,857.79 (1,041.5, 1.9%) while the broader Nifty 500 closed at 14,469.10 (206.6, 1.5%)

Market breadth is in the green. Of the 1,888 stocks traded today, 1,036 showed gains, and 804 showed losses.

  • Solara Active Pharma Sciences, AstraZeneca Pharma India, Medplus Health Services, and Procter & Gamble Hygiene & Healthcareare trading with higher volumesas compared to Wednesday.

  • The DEA and Revenue Secretary Tarun Bajaj says that the windfall tax will change with respect to the global crude prices. The Centre aims to maintain the fiscal deficit target of 6.4%.

  • PVR touches a 52-week high after its CEO Gautam Dutta says the company raised ticket prices by up to 23%, which helped it cross the Rs 1,000 crore revenue mark during Q1FY23.

  • SBI Cards and Payment Services rises as its Q1FY23 net profit increases 105.8% YoY to Rs 626.9 crore. Rise in income from fees and commissions and fall in impairment costs help profit improve. The bank’s asset quality improves significantly with gross NPAs falling 167 bps YoY to 2.2% in Q1FY23.

  • Stocks like Zomato, Gland Pharma, Tanla Platforms, and PB Fintechare in the oversold zoneaccording to the technical indicator relative strength index or RSI.

  • Sanofi India and GlaxoSmithKline Pharmaceuticals hit their 52-week lows of Rs 6,331 and Rs 1,399, respectively. Both stocks are falling for five consecutive sessions.

  • Nestle India’s board of directors approve the purchase of Purina PetCare’s pet foods business for Rs 123.5 crore

  • HDFC Securities maintains its ‘Buy’ rating on Aether Industries with a target price of Rs 1,045. This indicates an upside of 15.7%. The brokerage remains positive about the company’s prospects given its capacity-led expansion, advanced research & development capabilities, robust product pipeline, and loyal customer base. The brokerage estimates the company’s revenue to grow at a CAGR of 37.9% over FY22-24.

  • Blue Dart Express’ Q1FY23 net profit rises 279.9% YoY to Rs 118.8 crore. Revenue rises 49.3% YoY to Rs 1,293.3 crore. Healthy top-line growth along with improved automation and digitization to increase speed, transparency and efficiency helps its EBITDA margin to rise 210 bps YoY to 21.1%.

  • Reports suggest that the Centre may consider buyback of shares through defense public sector undertakings, which include Hindustan Aeronautics, Bharat Electronics, Bharat Dynamics, etc.

  • Shree Cements is falling as it reports a drop in net profit by 52% YoY to Rs 315.5 crore in Q1FY23. Profits shrink because an increase in raw material cost, depreciation cost and a surge in power and fuel costs by 2.2X YoY. Though revenue rises 22% YoY, the rise in costs saw EBITDA margin fall by 14 percentage points to 19%

  • IFB Industries is trading with more than 28 times its weekly average trading volume. Zydus Wellness, Cholamandalam Financial Holdings, VIP Industries, and Metro Brandsare trading at more than six times their weekly average trading volumes.

  • Nestle India is rising despite its net profit declining as high commodity prices lead to an increase in input costs. Profit falls 4.3% YoY to Rs 515.3 crore. Revenue, on the other hand, rises 16.1% YoY on the back of growth in all its business verticals primarily driven by price hikes. The company’s domestic sales increase 16.4% YoY to drive overall sales volume growth. However, a rise in sales volume is offset by an increase in input costs causing the EBITDA margin to fall 290bps YoY to 20.3%.

  • Metal stocks like Tata Steel, Jindal Steel & Power, JSW Steel, Welspun Corp, and Hindalco Industries, among others, are rising in trade. The broader sectoral index Nifty Metal is also trading in green.

  • KEC International receives new orders worth Rs 1,233 crore across its various businesses. The orders include building a 765 kilovolt digital substation for Power Grid Corporation of India, supply of towers in West Asia and Americas, and laying a cross-country pipeline and associated works in India, among others.

  • Dixon Technologies is falling as it reduces its revenue growth guidance after announcing its Q1FY23 results. It cuts its volume growth target for FY23 in the television segment to 3.6 million from 4 million on a slowdown in demand. It expects a fall in demand in other business verticals as well, thus lowering its revenue growth guidance to 7-10% for FY23. The company’s net profit rises 2.5X YoY to Rs 45.7 crore on a low base last year and revenue grows by 52.7% YoY led by a 4X rise in revenue from its electronic business.

  • All IT stocks are trading in the green. Stocks like Infosys, Larsen & Toubro Infotech, MindTree and L&T Technology Services are up by more than 2%. The broader sectoral index Nifty IT is also rising in trade.

  • Havells is rising despite a fire at its factory at Neemrana, Rajasthan on Wednesday. The company reports that there is no loss of human life and is currently assessing the cause of the fire.

  • SpiceJet is falling as the Directorate General of Civil Aviation (DGCA) restricts the company's flights to 50% for the next eight weeks, according to reports. The restriction comes after considering the findings of various spot checks, inspections and SpiceJet’s reply to the show cause notice issued on July 5.

  • Biocon is falling in trade despite its Q1 net profit rising 71.1% YoY to Rs 144.4 crore. The rise in profit is driven by new product launches in generics and biosimilar segments. Revenue rises 21.5%YoY to Rs 2,139.5 crore on the back of the generics and biosimilars segments rising 19% YoY and 29% YoY, respectively. Amid supply chain constraints leading to higher input costs and employee benefit expenses, the company’s EBITDA margin rises 100 bps YoY to 31%.

  • Hindustan Aeronautics is rising after it inks a pact with Honeywell worth $100 million. The contract is for the supply and manufacture of engines and kits, along with maintenance of Hindustan Trainer Aircraft (HTT-40) engines for the Indian Air Force.

  • Tata Motors’ Q1FY23 net loss widens to Rs 5,006.6 crore because of the ongoing semi-conductor shortage and a surge in raw material cost by 25.8% YoY. This increase in expenses led to a fall in operating margin by 312 bps YoY (to 4.2%), despite an 8.7% increase in revenue. A rise in passenger vehicle sales in the India business helped revenues increase while subsidiary Jaguar Land Rover's (JLR) revenue is down. Lockdowns in China and slow sales of new products hurt JLR's performance during the quarter.

Riding High:

Largecap and midcap gainers today include Bajaj Finance Ltd. (7,076.60, 10.63%), Bajaj Finserv Ltd. (14,642.05, 10.03%) and JSW Energy Ltd. (242.80, 6.61%).

Downers:

Largecap and midcap losers today include Biocon Ltd. (306.75, -5.12%), GlaxoSmithKline Pharmaceuticals Ltd. (1,399.20, -3.60%) and Dixon Technologies (India) Ltd. (3,578.50, -3.29%).

Movers and Shakers

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

Top high volume gainers on BSE included Indiabulls Housing Finance Ltd. (114.75, 11.68%), Bajaj Finance Ltd. (7,076.60, 10.63%) and IFB Industries Ltd. (1,001.15, 10.61%).

Top high volume losers on BSE were VIP Industries Ltd. (608.60, -6.30%), Mahindra Lifespace Developers Ltd. (407.45, -5.66%) and Biocon Ltd. (306.75, -5.12%).

Metro Brands Ltd. (636.90, 9.56%) was trading at 20.6 times of weekly average. Responsive Industries Ltd. (142.60, 4.62%) and Zydus Wellness Ltd. (1,653.35, 3.04%) were trading with volumes 10.4 and 10.3 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

12 stocks made 52 week highs, while 5 stocks were underachievers and hit their 52 week lows.

Stocks touching their year highs included - Bharat Electronics Ltd. (272.35, -0.29%), Coromandel International Ltd. (1,058.90, -0.53%) and Inox Leisure Ltd. (572.65, 1.25%).

Stocks making new 52 weeks lows included - GlaxoSmithKline Pharmaceuticals Ltd. (1,399.20, -3.60%) and Sanofi India Ltd. (6,339.80, -0.31%).

35 stocks climbed above their 200 day SMA including Bajaj Finance Ltd. (7,076.60, 10.63%) and Bajaj Holdings & Investment Ltd. (5,187.50, 6.04%). 9 stocks slipped below their 200 SMA including VIP Industries Ltd. (608.60, -6.30%) and Torrent Power Ltd. (502.85, -1.42%).

 
logo
The Baseline
27 Jul 2022
Chart of the week: Foreign investors continue to sell Indian shares, except in two sectors
By Abdullah Shah

After dumping over $33 billion worth of Indian shares since October 2021, foreign investors are changing tack. In the past two weeks, foreign investors invested around Rs 5,000 crore on a net basis. Although that’s just around $620 million, it shows that the large scale selling is giving way to tactical buys.

Before we get into what foreign investors bought over four weeks ending July 15, we have to deal with how the Indian rupee touched a life-time low of Rs 80.06 due to large selling of Indian shares by foreign investors. The Reserve Bank of India, predictably, stepped in to stem the fall as its Governor made it clear that the rupee’s volatility isn’t desirable. This is a veiled hint, from India’s monetary authority, that the RBI will intervene in the foreign exchange market to stem the rupee’s fall. This resulted in India’s foreign exchange reserves falling 3% in the past 30 days to $572.7 billion as of July 15.

The brunt of selling in the four weeks ended July 15 came from the energy sector. Foreign investors sold Rs 9,041 crore worth of shares in Indian companies in the oil, gas and coal space on a net basis.  After the energy sector, the financial services space saw foreign investors sell the next highest value of Indian shares at Rs 6,573 crore from June 16 to July 15.

But there are two sectors which saw foreign investors buying up shares. These are fast-moving consumer goods and capital goods. Capital goods saw a net investment of Rs 1,027 crore by foreign investors over June 16 to July 15, while the FMCG sector got a net investment of Rs 1,175 crore. The next fortnightly data update from NSDL will show if this change in trend persists, or if any move by the US Federal Reserve in hiking interest rates will shift sentiment again for foreign investors.

 
T
Trendlyne Marketwatch
27 Jul 2022
Market closes higher, Maruti Suzuki’s Q1 net profit rises 118.1% YoY

Trendlyne Analysis

Nifty 50 rose over 150 points and closed above the 16,500 mark on a volatile day of trade. The International Monetary Fund or IMF cut India’s FY23 GDP forecast to 7.4% from 8.2%. However, this forecast is still marginally higher than the Reserve Bank of India’s 7.2% GDP growth forecast for FY23. European stocks traded higher than Tuesday’s levels. Most Asian indices closed in the green, following the US indices’ futures. However, US stocks closed lower on Tuesday. The tech-focused index, NASDAQ 100, fell 2% while the S&P 500 closed 1.2% lower. Investors look ahead to the crucial US Federal Reserve meeting scheduled later today. Brent crude oil futures traded marginally higher after losing its gains and closing in the red on Tuesday.

Nifty Midcap 100 closed higher, following the benchmark index while Nifty Smallcap 100 closed flat. Nifty Realty and Nifty Pharma closed higher than Tuesday’s levels. Nifty IT, which lost over 2.8% on Tuesday, closed in the green, taking cues from the NASDAQ futures.

Nifty 50closed at 16,641.80 (158.0, 1.0%), BSE Sensexclosed at 55,816.32 (547.8, 1.0%) while the broader Nifty 500closed at 14,262.55 (121.1, 0.9%)

Market breadth is in the green. Of the 1,893 stocks traded today, 986 were on the uptick, and 856 were down.

  • Pfizer, Bayer Cropscience, Sapphire Foods India, and Ajanta Pharmaare trading with higher volumesas compared to Tuesday.

  • Bandhan Banksees a long build-up in its July 28 future series as its open interest rises 23.8% with a put-call ratio of 0.79.

  • Maruti Suzuki’s Q1FY23 net profit rises 118.1% YoY to Rs 1,036.2 crore on a low base. Revenue rises 50.5% YoY to Rs. 25,288.9 crore despite the chip shortage issue persisting. However, revenue remains flat QoQ as raw material and employee benefits costs rise, leading to a 44.8% QoQ fall in net profit.

  • Gujarat Fluorochemicals is falling even though its Q1FY23 net profit jumps 2X YoY to Rs 303.4 crore as revenue rises 46.3% YoY to Rs 1,334 crore. The company’s margins expand despite an increase in input costs, with power and fuel costs rising 67.2% YoY to Rs 234.4 crore. EBITDA margin rises by 6.4 percentage points YoY to 34.4%.

  • Adani Total Gas and Coromandel International rise to their all-time highs of Rs 2,958 and Rs 1,067.4, respectively. Adani Total Gas is rising for the last four consecutive sessions, while Coromandel International is rising for the last two consecutive sessions.

  • Genesys International and Tech Mahindra rise as Google announces partnership with the companies on enabling the ‘street view’ feature of Google Maps in India. Google was unable to launch this feature because of regulation issues as foreign entities were not allowed to collect geospatial data on their own. With these partnerships the ownership and collection of data will stay with Genesys International and Tech Mahindra while Google will provide the infrastructure for the imaging and mapping of Indian streets.

  • United Spirits falls despite its Q1FY23 net profit rising 419% YoY to Rs 261.1 crore. Revenue rises 15.6% YoY to Rs 7,131.3 crore. An increase in cost of raw materials and a one-time special grant offered to the employees led to its EBITDA margin to shrink 340 bps YoY to 73.3%.

  • Dr. Reddy’s launches ‘Bortezomin’ injection in the US market after the USFDA's approval. The injection is a generic equivalent of the ‘Velcade’ injection and will be used in cancer treatments. The market size for this product is $1.2 billion in the US.

  • Sanofi India is falling as its Q2CY22 net profit declines 32.5% YoY to Rs 120.4 crore as revenue decreases by 11.4% YoY to Rs 699.3 crore. EBITDA margin also falls by 8 percentage points YoY to 23%. The company declares a one-time special interim dividend of Rs 193 per equity share and fixes August 8, 2022, as the record date.

  • Edelweiss maintains its ‘Buy’ rating on Crompton Greaves Consumer Electricals with a target price of Rs 432, indicating an upside of 15%. The brokerage believes the company’s extensive reach in the fans segment, strong research & development capabilities, and cost-saving initiatives will drive profit growth in the coming quarters. It expects the company’s net profit to grow at a CAGR of 15% over FY22-24.

  • Tata Investment Corpis trading with more than 38 times its weekly average trading volume. Tanla Platforms, TeamLease Services, United Spirits, and EPLare trading at more than three times their weekly average trading volumes.

  • Page Industries hits an all-time highof Rs 47,085.9, the stock is rising for four consecutive days. The company aims to expand capacity and increase infrastructure and facilities to meet growing demand.

  • The International Monetary Fund cuts its India growth forecast to 7.4% inFY23 from the earlier 8.2% (in April) due to tighter monetary policies and unfavourable external environment.

  • Pharmaceutical companies like Divi's Laboratories, Sun Pharmaceuticals, Zydus Lifesciences among others, are rising in trade. The broader Nifty Pharma index is also trading in the green.

  • Competition Commission of India sanctions Axis Bank’s acquisition deal of Citibank’s consumer business for Rs 12,235 crore.

  • Metropolis Healthcare is looking to raise $500 million to fund acquisitions and expansion in the healthcare and diagnostics lab space, according to reports. The company’s promoters drop plans of selling their stake and instead may find a strategic partner to fuel their expansion plans. The company plans to raise capital through preferential share allotments or secondary share sales over the coming months.

  • Tanla Platforms is falling and hits 52-week low. The stock is falling for two consecutive sessions as the company's Q1FY23 profit falls 39.2% QoQ to Rs 17.6 crore and revenue falls 10.5% QoQ to Rs 327.3 crore.

  • Tata Power is falling despite its Q1FY23 net profit surging 2X YoY to Rs 794.6 crore driven by its coal operations. Revenue rises 45.4% YoY to 14,495.5 crore as revenue from all business verticals increases. However, with the cost of fuel rising more than 2.5X YoY to Rs 4,215.7 crore the operating margin falls by 11.7 percentage points YoY to 11.6%.

  • Sansera Engineering is falling after its North American OEM client drops the project of manufacturing and supply of rods with the company, signed in April 2022. The production was to begin in July 2025. The approximate value of the deal was over $400 million.

  • Domestic production of urea may fall below 260 lakh metric tonnes in FY23 due to GAIL reducing gas supply. Fertilizer companies request the Centre to allow import of natural gas to sustain domestic production.

  • Larsen & Toubro’s Q1FY23 net profit falls 9.7% YoY to Rs 911.2 crore, however, revenue increases 21.7% to Rs 20,211.7 crore. Revenue from infrastructure projects is up 37.7% YoY to Rs 13,467 crore while revenue from energy projects is flat in Q1FY23 at Rs 4,417.6 crore. The company's operating margin fell 68 bps YoY to 7.65% as construction material costs almost doubled (up 87%) to Rs 7,196.6 crore.

Riding High:

Largecap and midcap gainers today include Star Health and Allied Insurance Company Ltd. (762.30, 8.81%), YES Bank Ltd. (14.70, 7.30%) and Coromandel International Ltd. (1,064.50, 6.21%).

Downers:

Largecap and midcap losers today include Mahindra & Mahindra Financial Services Ltd. (198.80, -3.68%), Tata Power Company Ltd. (218.00, -3.60%) and PB Fintech Ltd. (458.05, -2.92%).

Volume Shockers

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

Top high volume gainers on BSE included Star Health and Allied Insurance Company Ltd. (762.30, 8.81%), Coromandel International Ltd. (1,064.50, 6.21%) and Laurus Labs Ltd. (513.80, 6.14%).

Top high volume losers on BSE were Tanla Platforms Ltd. (585.20, -19.90%), EPL Ltd. (171.00, -7.49%) and Route Mobile Ltd. (1,213.70, -6.93%).

Tata Investment Corporation Ltd. (1,456.10, 2.94%) was trading at 47.4 times of weekly average. Mishra Dhatu Nigam Ltd. (172.65, 1.68%) and ZF Commercial Vehicle Control Systems India Ltd. (8,399.30, 0.17%) were trading with volumes 7.7 and 6.2 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

9 stocks overperformed with 52-week highs, while 5 stocks were underachievers and hit their 52-week lows.

Stocks touching their year highs included - Coromandel International Ltd. (1,064.50, 6.21%), GHCL Ltd. (677.30, 2.15%) and Inox Leisure Ltd. (565.60, 2.71%).

Stocks making new 52 weeks lows included - GlaxoSmithKline Pharmaceuticals Ltd. (1,451.40, -0.69%) and Zensar Technologies Ltd. (246.65, -1.20%).

16 stocks climbed above their 200 day SMA including Mazagon Dock Shipbuilders Ltd. (278.80, 3.57%) and Tata Investment Corporation Ltd. (1,456.10, 2.94%). 17 stocks slipped below their 200 SMA including EPL Ltd. (171.00, -7.49%) and Tata Power Company Ltd. (218.00, -3.60%).

 
T
Trendlyne Marketwatch
26 Jul 2022
Market closes lower, Asian Paints' Q1 net profit surges 78.9% YoY to Rs 1,016.9 crore

Trendlyne Analysis

Indian indices closed in the red, with the volatility index, India VIX, rising above 18%. Nifty 50 fell close to 150 points and closed below the 16,500 mark. Most European stocks traded lower than Monday’s levels amid mixed global cues. However, FTSE 100 traded higher on the back of positive earnings updates. Major Asian indices closed mixed, tracking the US indices, which also closed mixed on Monday. US stocks closed mixed as investors look ahead to the crucial US Federal Reserve meeting this week. The tech-heavy index, NASDAQ 100 closed 0.6% lower, while the Dow Jones rose 0.3%. Brent crude oil futures rose as Russia’s reduction in gas supply to Europe could encourage a switch to crude oil.

Nifty Smallcap 100 and Nifty Midcap 100 closed in the red, following the benchmark index. Nifty Metal and Nifty Realty closed lower than Monday’s levels. Nifty IT closed in the red, tracking the NASDAQ 100, which closed lower on Monday.

Nifty 50closed at 16,483.85 (-147.2, -0.9%), BSE Sensexclosed at 55,268.49 (-497.7, -0.9%) while the broader Nifty 500closed at 14,141.45 (-138.1, -1.0%)

Market breadth is moving down. Of the 1,890 stocks traded today, 487 showed gains, and 1,352 showed losses.

  • Solara Active Pharma Sciences, Rossari Biotech, Nuvoco Vistas Corp, Motilal Oswal Financial Services, and Chemplast Sanmar are trading with higher volumes as compared to Monday.

  • Bajaj Finserv sees a long build-up in its July 28 future series as its open interest rises 15.2% with a put-call ratio of 0.71.

  • Stocks like Aegis Logistics, Timken India, Shriram Transport Finance Co, Kajaria Ceramics and Can Fin Homes are in the overbought zone, according to the technical indicator relative strength index or RSI and money flow index or MFI.

  • Bajaj Auto’s Q1FY23 net profit rises marginally by 0.6% YoY to Rs 1,163.3 crore. Its revenue increases 8.4% YoY to Rs 8,004.9 crore because of a favourable product mix. EBITDA margin rises 100 bps to 16.6% as three-wheeler wholesales rise.

  • Asian Paints is rising as its Q1FY23 net profit surges 78.9% YoY to Rs 1,016.9 crore and revenue increases 54.1% YoY to Rs 8,606.9 crore. Revenue grows on the back of robust sales volume growth and rising consumer demand. EBITDA margin rises 172 bps YoY to 18.1% despite the cost of materials consumed rising 34.6% YoY to Rs 4,610.3 crore.

  • India's crude oil imports rise 20.8% YoY to 19.2 million tonnes in June 2022. This is the highest quantity of import of crude oil since July 2021. However, LPG imports fall 5.9% YoY in June 2022.

  • IDBI Capital maintains its ‘Buy’ rating on Finolex Industries with a target price of Rs 195, indicating an upside of 39%. Even though the company’s net profit declined 31.8% in Q1FY23, the brokerage expects the company to perform well in the coming quarters. It remains positive on the company’s prospects given its backward integration operations, healthy balance sheet and strong positioning in the domestic agricultural-pipes market. The brokerage estimates the company’s revenue to grow at a CAGR of 6.1% over FY22-24.

  • Jindal Stainless’ Q1FY23 net profit rises 7.7% YoY to Rs 329.4 crore despite EDITDA margin falling 360 bps YoY to 21.2%. This is because finance costs fell 17.3% YoY to Rs 72.1 crore. Revenue increases by 35.7% YoY to Rs 5,474.1 crore.

  • JP Morgan initiates coverage on Sona BLW Precision Forgings with an ‘underweight’ rating and a target price of Rs 485. The brokerage expects its revenue mix to drive revenue growth of 32% CAGR over FY22-25. However, the downside risk is the low margins in the near term. It also expects revenue for FY23-24 to be 7%-9% below consensus estimates.

  • Vinati Organics is trading with more than 13 times its weekly average trading volume. Tanla Platforms, EIH, Delta Corp, and Sapphire Foods Indiaare trading at more than four times their weekly average trading volumes.

  • Lupin gets USFDA approval for its generic drug for treatment of high blood pressure. The company estimates an annual sale of $101 million in the US market for this tablet. The medicine will be manufactured in Lupin’s Nagpur plant.

  • Indian Energy Exchange is falling despite its Q1FY23 net profit rising 10% YoY to Rs 69.1 crore and revenue growing 8% YoY to Rs 98.3 crore. Electricity volumes on the exchange rise 10% YoY to 23.4 billion units driven by an increase in electricity consumption. EBITDA margin rises 20 bps YoY to 82.4%.

  • PSP Projects receives new work orders worth Rs 257.27 crore. The orders include development of Ahmedabad airport in the institutional segment worth Rs 128.01 crore, pharmaceutical project in the industrial segment worth Rs 98.99 crore, and remaining orders worth Rs 30.26 crore are from the precast segment.

  • GlaxoSmithKline Pharmaceuticals’ Q1FY23 net profit rises 8.3% YoY to Rs 116.2 crore as revenue rises 3.7% YoY to Rs 745.1 crore. Cost of raw materials falls 3.1% to Rs 286.9 crore. EBITDA margin rises 203 bps YoY to 56.4%.

  • Agriculture commodity prices fall with wheat and cotton leading the pack. In the last three months, cotton is down 31%, while wheat is down 28%. Corn prices are down 20% month-to-date in July.

  • IT stocks like MphasiS, L&T Technology Services, MindTree, and Infosys, among others, are falling in trade. The broader sectoral index Nifty IT is also trading in red.

  • Tata Steel is falling as its Q1FY23 net profit declines 12.8% YoY to Rs 7,765 crore as the cost of materials consumed increases 64.1% YoY to Rs 26,319.9 crore. Input costs increase due to elevated coking coal prices. However, revenue rises 18.8% YoY to Rs 63,430.1 crore driven by high steel realisations in India and Europe. Revenue from Tata Steel India grows 15.6% YoY to Rs 32,021.1 crore and Tata Steel Europe increases 33.5% YoY to Rs 25,960.9 crore.

  • Jefferies maintains its ‘Buy’ rating on Zomato with a target price of Rs 100, indicating an upside of more than 50%. It believes the company is moving toward better unit economics and that it will break even in the foreseeable future

  • Bajaj Finserv is rising as its board of directors will consider sub-division of shares and/or a bonus issue of shares in its meeting on Thursday. The board will also consider the company’s Q1FY23 results for approval in the same meeting.

  • Tech Mahindra is falling as its Q1FY23 net profit falls nearly 25% QoQ to Rs 1,131.6 crore despite revenue rising 4.9% QoQ to Rs 12,707.9 crore. The profit was hurt by a 8.3% QoQ rise in its employee costs to Rs 6,550 crore. EBIT margin came in at 11%, down 360 bps QoQ. New deal wins in Q1FY23 were $802 million, down 20.7% QoQ.

  • Axis Bank’s Q1FY23 net profit jumps 91% YoY to Rs 4,125.3 crore as provisions fall 75% YoY to Rs 777 crore. Net interest income rises 21% YoY to Rs 9,384 crore with net interest margin improving 14 bps YoY to 3.6%. Revenue from retail banking rises 17% YoY to Rs 19,631.6 crore while revenue from corporate and wholesale banking increases 23% to Rs 7,336.7 crore. Asset quality improves as gross NPAs fall 109 bps YoY to 2.7% in Q1FY23.

Riding High:

Largecap and midcap gainers today include Bajaj Finserv Ltd. (13,313.00, 5.50%), Sun TV Network Ltd. (465.80, 5.22%) and JSW Steel Ltd. (597.75, 2.09%).

Downers:

Largecap and midcap losers today include Zomato Ltd. (41.65, -12.50%), One97 Communications Ltd. (698.90, -7.80%) and Persistent Systems Ltd. (3,333.95, -7.56%).

Movers and Shakers

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

Top high volume gainers on BSE included EIH Ltd. (155.00, 7.56%), Bajaj Finserv Ltd. (13,313.00, 5.50%) and Sun TV Network Ltd. (465.80, 5.22%).

Top high volume losers on BSE were Tanla Platforms Ltd. (730.60, -20.00%), Zomato Ltd. (41.65, -12.50%) and GlaxoSmithKline Pharmaceuticals Ltd. (1,465.25, -2.04%).

Vinati Organics Ltd. (2,184.45, 3.07%) was trading at 15.7 times of weekly average. Delta Corp Ltd. (193.05, 4.58%) and Sapphire Foods India Ltd. (1,133.90, 2.73%) were trading with volumes 8.2 and 5.8 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

7 stocks overperformed with 52-week highs, while 5 stocks were underachievers and hit their 52-week lows.

Stocks touching their year highs included - ITC Ltd. (302.45, 0.45%), Timken India Ltd. (2,896.15, 0.18%) and Vinati Organics Ltd. (2,184.45, 3.07%).

Stocks making new 52 weeks lows included - Sterlite Technologies Ltd. (133.20, -6.76%) and Tanla Platforms Ltd. (730.60, -20.00%).

9 stocks climbed above their 200 day SMA including EPL Ltd. (184.85, 2.67%) and Navin Fluorine International Ltd. (4,242.35, 0.81%). 23 stocks slipped below their 200 SMA including Angel One Ltd. (1,349.35, -4.58%) and Narayana Hrudayalaya Ltd. (628.60, -3.74%).

 
logo
The Baseline
25 Jul 2022
Five analyst stock picks with over 10% revenue and profit growth in Q1FY23
  1. Hindustan Unilever: Axis Securities maintains its ‘Buy’ rating on this FMCG company with a target price of 2,810. This indicates an upside of 7.1%. In Q1FY23, the company’s net profit increased 13.5% YoY to Rs 2,381 crore and revenue rose 19.9% YoY to Rs 14,624 crore.

Analysts Preeyam Tolia and Dhananjay Choudhury say “Hindustan Unilever delivered a resilient performance ahead of our and street expectations on key performance metrics”. Sales growth was driven by price hikes, market share gains and strong double-digit growth in home care and beauty & personal care segments, according to Tolia and Choudhury. 

However, its EBITDA margin fell 110 bps YoY to 23.2% on the back of high raw material cost inflation, they point out.

Tolia and Choudhury anticipate margins to remain under pressure until Q3 this year on high raw material costs and the weakening rupee. They believe the company’s mid- and long-term prospects are bright given its diverse product portfolio, market share gains, cost-saving initiatives, and strong execution capabilities. The analysts expect the company’s net profit to grow at a CAGR of 15.6% over FY22-24.

  1. Oberoi Realty: Motilal Oswal maintains its ‘Buy’ rating on this realty company with a target price of Rs 1,100. This indicates an upside of 25%. In Q1FY23, this company’s net profit grew nearly 5X YoY to Rs 403.08 crore and revenue jumped 3.2X YoY to Rs 913.1 crore.

Analysts Pritesh Sheth and Sourabh Gilda expect Oberoi Realty’s pre-sales to “increase by 22% YoY to Rs 4,800 crore in FY23”. The strong launch pipeline will drive growth in FY23, say Sheth and Gilda. In Q1, the realty developer got steady bookings amounting to Rs 760 crore, which fell 18% QoQ but rose nearly 4.5X times YoY.

The company’s retail and hospitality segments’ occupancy rates in Q1 have reached their highest levels since covid-19, say Sheth and Gilda. The occupancy rates of its retail mall and hospitality assets stood at 96% and 91%, respectively. “Renewed focus on business development is a positive sign and will continue to provide further growth visibility for Oberoi Realty,” say the analysts. They expect the company’s profit to grow at a CAGR of 32.7% over FY22-24.

  1. HDFC Bank: LKP Securities maintains a ‘Buy’ call on this bank with a target price of Rs 1,709, indicating an upside of 22.4%. In Q1FY23, the bank reported a profit growth of 21.9% YoY to Rs 9,654.2 crore and 13.53% YoY revenue growth to Rs 44,202.3 crore. “HDFC Bank reported moderate operating performance in Q1FY23,” says analyst Ajit Kumar Kabi. 

Kabi says the bank’s “superior underwriting practices, higher liquidity, adequate coverage, and strong capital position makes it well placed.” The analyst further adds that the bank maintained its growth as the net advances during Q1 increased 21.6% YoY to Rs 14 lakh crore and deposits grew 19% YoY to Rs 16 lakh crore. 

The bank’s net interest income stood at Rs 19,480 crore (up 14.5% YoY) and its net interest margin stood at 4.2%, up 10 basis points YoY. The analyst expects the bank to outperform the sector in the long run on the back of a healthy balance sheet growth, higher provision than the regulatory requirement in the balance sheet, and best-in-class underwriting and risk management practices.

  1. Jindal Steel & Power: BOB Capital maintains its ‘Buy’ rating on this steel company’s stock but reduces the target price to Rs 460 from Rs 555. This indicates an upside of 24.3%. In Q1FY23, the company’s revenue increased by 22.8% to Rs 13,069.2 crore and net profit increased by 4,727.9% to Rs 1,992.9 crore. 

An exceptional loss of Rs 1,240.12 crore in Q1FY22 and a reversal of deferred tax of Rs 1,276.22 crore in Q1FY23 have led to the elevated profit number during the quarter.

Analyst Kirtan Mehta says that the “Q1 results were ahead of consensus (estimates).” But despite a healthy EBITDA of Rs 3,000 crore and inflow of Rs 3,000 crore as consideration for the stake sale (in the company), the net debt reduction was muted at Rs 1,100 crore QoQ in Q1.

The analyst thinks the rise in coking coal prices will likely extend margin pressure on the company during Q2 this year. He adds that the company plans to continue with its Rs 18,000 crore capex plan to enhance margins and expand pellet, hot strip mill, and crude steel capacity even in the current environment. He is cautiously positive on the stock despite uncertainties, due to the company’s healthy growth.

  1. Angel One: ICICI Securities maintains a ‘Buy’ call on this stock broking company but revises its target price downwards to Rs 1,830 from Rs 2,230. This indicates an upside of 29.4%. In Q1FY23, the company reported a 49.6% YoY increase in net profit to Rs 181.5 with revenues rising 44.7% to Rs 686.5 crore. 

Analysts Ansuman Deb and Ravin Kurwa feel that despite the positive results, “Angel One reported a decline in the number of orders and margin trading facility book, in line with weak market sentiment in Q1 and especially June 2022”. The analysts expect the Indian stock market to decline further, causing a decline in key operating parameters for the company’s business. 

“We expect orders per day to remain resilient although it may dip in the near term, in line with market sentiment,” say Deb and Kurwa. They expect employee costs and other expenses to remain elevated due to new hiring and investments towards marketing costs in order to increase market share. Accordingly, the analysts forecast the profit to be at Rs 700 crore and Rs 780 crore in FY23 and FY24, respectively.

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

 
T
Trendlyne Marketwatch
25 Jul 2022
Market closes lower, Canara Bank’s Q1 profit rises 71.7% YoY to Rs 2,022 crore'

Trendlyne Analysis

Nifty 50 closed in the red with the volatility index, India VIX, rising above 17.5%. Indian market fell after rising for six consecutive sessions as Reliance Industries and Infosys' weak earnings weighed on the benchmark indices. European stocks traded lower than Friday’s levels. Major Asian indices closed in the red, tracking the US indices, which closed lower on Friday. The tech-heavy index, NASDAQ 100 closed 1.8% lower, led by social media company, Snap, which fell over 39% post its earnings release on Friday. Investors look ahead to the US Federal Reserve meeting and US Q2 gross domestic product or GDP data release later this week. Brent crude oil futures recovered from its day’s low and traded higher than Friday’s levels.

Nifty Smallcap 100 closed in the red, following the benchmark index. Nifty FMCG and Nifty Media closed lower than Friday’s levels. Nifty IT closed higher, despite the NASDAQ 100 closing in the red on Friday.

Nifty 50closed at 16,631.00 (-88.5, -0.5%), BSE Sensexclosed at 55,766.22 (-306.0, -0.6%) while the broader Nifty 500closed at 14,279.50 (-57.1, -0.4%).

Market breadth is in the red. Of the 1,922 stocks traded today, 735 were in the positive territory and 1,137 were negative.

  • Macrotech Developers, Procter & Gamble Hygiene & Healthcare, Gujarat Pipavav Port, and Bayer Cropscienceare trading with higher volumesas compared to Friday.

  • Navin Fluorine International sees a long build-up in its July 28 future series as its open interest rises 35.1% with a put-call ratio of 0.85.

  • Stocks like Yes Bank, CG Power and Industrial Solutions, City Union Bank, and Aegis Logisticsare in the overbought zone, according to the technical indicator relative strength index or RSI.

  • Sharda Cropchem is falling as its Q1FY23 net profit declines 40.5% YoY to Rs 22.6 crore as the raw material costs more than doubled to Rs 300.1 crore. EBITDA margin declines by 330 bps to 11.7%. While revenue grows 32.4% YoY to Rs 824.5 crore given better price realisation and product mix. Revenue from the agrochemicals segment rises 15.1% YoY to Rs 534.3 crore and the non-agrochemicals segment surges nearly 2.4X YoY to Rs 209.7 crore.

  • Internet software and service companies Zomato and PB Fintech touch an all-time low of Rs 46 and Rs 499.5, respectively.

  • Canara Bank’s Q1FY23 net profit rises 71.7% YoY to Rs 2,022 crore with net interest income increasing 10% to Rs 6,785 crore. Provisions fall 6.5% YoY to Rs 4,584 crore. The bank’s asset quality improves significantly with gross NPAs falling 152 bps YoY to 6.98% and net NPAs are down 98 bps to 2.48%.

  • Auto stocks like Mahindra & Mahindra, Maruti Suzuki India, Eicher Motors, Bosch, and Tata Motorsare falling in trade. The broader sectoral index Nifty Auto is also trading in the red.

  • Jyothy Labs is rising as its Q1FY23 net profit increases 18.2% YoY to Rs 48.4 crore and revenue grows 13.7% YoY to Rs 597.2 crore. The fabric care segment's revenues rise 38.6% to Rs 251 crore while the dishwashing segment's rose 9.6% YoY to Rs 209 crore. EBITDA margins are down 200 bps YoY to 10% as the cost of materials rose nearly 30% YoY to Rs 343.6 crore

  • Larsen & Toubro to sell eight operational road assets and a power transmission project to Edelweiss Infrastructure Yield Plus, a fund managed by Edelweiss Alternative Asset Advisors, for Rs 7,000 crore, according to reports. The deal awaits approval from National Highway Authority of India and Securities and Exchange Board of India.

  • Specialty chemical stocks like SRF, Gujarat Flurochemicals, Aarti Industries,Vinati Organics, Alkyl Amines Chemicals, Balaji Amines, among others, rise a falling rupee benefits these export-oriented companies.

  • Navin Fluorine International is trading with more than nine times its weekly average trading volume. Mahindra CIE Automotive, Zomato, Praj Industries, and Anupam Rasayan India are trading at more than two times their weekly average trading volumes.

  • PB Fintech is falling and touches a 52-week low of Rs 499.5 as it reports an IT breach the company faced on July 19. The company is identifying the reasons for the breach and is auditing the discrepancies with the information security team. The company, however, says there was no customer data leakage because of this incident.

  • ICICI Securities downgrades its rating on Coforge to ‘Add’ from ‘Buy’ and reduces its target price to Rs 4,018 from Rs 4,160. This indicates an upside of 7.6%. The brokerage downgrades its rating as the company’s Q1FY23 revenue misses its estimates. However, the brokerage remains positive on the company’s prospects given that it has the lowest attrition rate in the industry. It also sees the company’s large deal wins and its ability to leverage cross-sell synergies through acquisitions as key positives. The brokerage estimates the company’s net profit to grow at a CAGR of 21.1% over FY22-24.

  • Vodafone Idea appoints Akshaya Moondra as Chief Executive Officer for a period of three years effective from with effect from August 19. The new appointment comes in as Ravinder Takkar ceases to be the Managing Director and Chief Executive Officer as he completes his term of three years on August 18.

  • Group of Ministers of GST Council remain indecisive on increasing the GST rate to 28% for online gaming and casinos. The group will hold another meeting before submitting their final report to the Council on August 10.

  • Navin Fluorine International is rising as its Q1FY23 net profit rises 33.1% YoY to Rs 74.4 crore and revenue rises 21.7% YoY to Rs 397.5 crore. Revenue rises on the back of the speciality chemicals segment rising 32% YoY to 176 crore and the high-performance products segment rising 33% to Rs 152 crore. EBITDA margin rises 110 bps YoY to Rs 24.9%

  • Tata Motors receives an order for suppling, operating and maintaining 1,500 electric buses for 12 years from Delhi Transport Corporation (DTC) as part of a tender by Convergence Energy Services, according to reports.

  • Kotak Mahindra is falling despite its net profit surging 26.1% YoY to Rs 2,071.1 crore. Profit rises on the back of the net interest income rising 19.1% YoY to Rs 4,697 crore and provisions reducing 12.3% YoY to Rs 6,532 crore. Net interest margin rises 32 bps YoY to 4.9%. The bank’s asset quality improves as the net non-performing assets fall 66 bps YoY to 0.6%.

  • ICICI Bank is rising as its Q1FY23 net profit rises 49.6% YoY to Rs 6,904.9 crore as provisions fall 60% YoY to Rs 1,144 crore. Net interest income increases 21% YoY to Rs 13,210 crore with net interest margin rising 12 bps to 4.01%. Retail banking segment revenue grew 18.7% YoY to Rs 23,388 crore while wholesale banking segment’s revenue rises 14.8% to Rs 10,869 crore. The bank’s asset quality improves as gross NPAs fall 174 bps YoY to 3.4% and net NPAs are down by 46 bps to 0.7% in Q1FY23.

  • Infosys is falling as its net profit declines 5.7% QoQ to Rs 5,360 crore while revenue rises 6.8% QoQ to Rs 34,470 crore. Profit falls due to employee benefit expenses rising 10.1% QoQ to Rs 18,337 crore and sub-contractors’ costs surging 8.9% QoQ to Rs 3,909 crore. Operating margin declines by 150 bps QoQ to 20%. Attrition rate rises by 70 bps QoQ to 28.4%. The management raises its FY23 revenue growth guidance to 14-16% from 13-15%.

  • Reliance Industries’ Q1FY23 net profit is up 46.3% YoY to Rs 17,955 crore with revenue increasing 53% to Rs 2.4 lakh crore. Oil to chemicals segment contributes most to revenue growth, rising 56.7% YoY to Rs 1.6 lakh crore. Retail segment revenue is up 51.9% YoY to Rs 58,569 crore as consumer spending increases while digital services revenue rises 21.8% to Rs 28,511 crore. Inflationary pressures cause an increase in expenses by 50.9% YoY to Rs 1.9 lakh crore as raw material costs surge 75.5% to Rs 1.3 lakh crore.

Riding High:

Largecap and midcap gainers today include SRF Ltd. (2,383.45, 4.06%), GAIL (India) Ltd. (147.00, 3.81%) and Balkrishna Industries Ltd. (2,349.10, 3.42%).

Downers:

Largecap and midcap losers today include Zomato Ltd. (47.60, -11.28%), Oil India Ltd. (186.50, -4.63%) and Bandhan Bank Ltd. (273.80, -4.27%).

Movers and Shakers

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

Top high volume gainers on BSE included Navin Fluorine International Ltd. (4,208.20, 11.10%), Praj Industries Ltd. (398.95, 4.06%) and Mahindra CIE Automotive Ltd. (258.30, 3.82%).

Top high volume losers on BSE were Zomato Ltd. (47.60, -11.28%), Finolex Industries Ltd. (131.90, -5.82%) and Poly Medicure Ltd. (736.55, -5.55%).

Akzo Nobel India Ltd. (1,943.95, 1.00%) was trading at 6.4 times of weekly average. Lakshmi Machine Works Ltd. (10,233.55, 2.09%) and Suven Pharmaceuticals Ltd. (475.75, 2.05%) were trading with volumes 6.1 and 5.4 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

9 stocks hit their 52-week highs, while 2 stocks hit their 52-week lows.

Stocks touching their year highs included - Bharat Electronics Ltd. (270.05, 1.22%), Blue Dart Express Ltd. (8,374.45, 0.03%) and EID Parry (India) Ltd. (563.55, 1.15%).

Stocks making new 52 weeks lows included - Zomato Ltd. (47.60, -11.28%) and PB Fintech Ltd. (499.70, -3.92%).

15 stocks climbed above their 200 day SMA including Navin Fluorine International Ltd. (4,208.20, 11.10%) and SRF Ltd. (2,383.45, 4.06%). 16 stocks slipped below their 200 SMA including EPL Ltd. (180.05, -2.75%) and Nesco Ltd. (569.85, -2.56%).

 
logo
The Baseline
22 Jul 2022, 06:35PM
Five Interesting Stocks Today

  1. Federal Bank: This private bank’s stock rose 21.8% over the past month till Thursday. It also outperformed the banking industry over the past 90 days by 11.3%. The latest upmove in the stock started after the bank released its business update on July 3. The company’s gross advances grew 16.3% YoY to Rs 1.5 lakh core and total deposits by 8.2% YoY to Rs 1.8 lakh crore in Q1FY23. This was a precursor to its good Q1FY23 results as after announcing its results on July 15, the scrip rose 8.5% on the bourses. The bank’s net profit rose 63.5% YoY to Rs 600.7 crore and revenue rose 8.1% YoY to Rs 3,628.9 crore. It beat Trendlyne’s Forecaster profit estimates by 19.6%. The bank shows up on this screener of companies with rising profits for four consecutive quarters.

The bank’s management expects 18% credit growth in FY23 and healthy business traction and diversification to aid profitability. The expansion into high-yield segments such as commercial vehicle loans, construction equipment loans, personal loans, and credit cards is expected to contribute to profit growth. The bank also expects its asset quality to remain stable, with the NIM improving by 5-7 bps from 3.22% to 3.25%-3.27% by the end of FY23. 

  1. Tube Investments of India: This auto parts & equipment maker’s stock rose 12.3% on Tuesday after it announced that its arm TI Clean Mobility (TICMPL) acquired a 65.2% stake in IPLTech Electric in an all-cash deal worth Rs 246 crore. IPLTech Electric makes and sells electric heavy commercial vehicles. The company expects this acquisition to expand its footprint in the electric vehicle space. TICMPL has existing interests in the manufacturing of electric three-wheelers and electric tractors through its subsidiary Cellestial E-Mobility. The management plans to launch its first electric three-wheeler and tractor in FY23.

Over the past week, the stock rose over 10.1% till Thursday and outperformed the Nifty 50 index in the same time period. 

In FY22, Tube Investments’ revenue grew 105.9% YoY to Rs 12,525.3 crore and net profit grew 168.5% YoY to Rs 768.8 crore driven by the engineering and industrial systems segment. All the business verticals of the company grew, thanks to total exports growing 98% YoY, according to Motilal Oswal. To push exports the company is developing strategic partnerships with original equipment manufacturers and distributor channels. The US and EU nations are its major export markets. The company expects growth in the domestic market in the coming years and expects production-linked schemes (PLI) for auto parts to boost the industry. However, Trendlyne’s Forecaster shows the company’s revenue falling 25.2% YoY to Rs 1,823.6 crore in Q1FY23.

  1. Havells India: This consumer durables company’s Q1FY23 result was a mixed bag. Its Q1FY23 revenue rose 62.6% YoY to Rs 4,244.5 crore, beating Trendlyne’s Forecaster estimates by 5.9%. But high raw material costs hurt net profit, which rose only 3.1% YoY, missing Forecaster estimates by 26%. The stock gained over 12.6% in the past two weeks ahead of its results. With the sharp rise in its share price, Havells features in the screener that lists stocks that are overbought by the money flow index or MFI.

In the post-earnings call, Havells India’s Chairman and Managing Director Anil Rai Gupta said that volatile commodity prices impacted the margins in Q1FY23. He added that the recent moderation in prices could reflect in the next two quarters. High raw material costs put pressure on the operating profit margin, which fell 5.1 percentage points YoY to 8.5% in Q1FY23.

In addition to the raw material costs, advertisement and sales promotion costs jumped 2.5X YoY to Rs 113.4 crore in Q1FY23, which impacted profits from the company’s subsidiary Lloyd. Havells had acquired Lloyds in 2017 to foray into the air conditioning segment. Lloyd, which constitutes over 25% of total revenue, posted strong revenue growth of 119% YoY to Rs 1,084 crore in Q1FY23. However, it posted a loss of Rs 56 crore before tax on the back of high advertising and sales promotion expenses due to intense competition in the air conditioning space. 

  1. Bharat Electronics: This defence equipment makers’ stock touched an all-time high of Rs 242.2 in the first week of April as the Centre moved to indigenise production of certain items like weapons, equipment, etc. This could benefit defense public sector companies like Bharat Electronics. Its stock is trading up 6% in the last 90 days and also outperformed its industry by 1.2% in the past 90 days. 

The company’s stock touched an all-time high on Monday of Rs 260.8 when it announced its Q1FY23 results. Its net profit zoomed 15X YoY on a low base to Rs 365.5 crore. It also sees a 90.5% rise in revenues to Rs 3,140 crore, much more than the ICICI Securities’ estimates. Revenue numbers beat Trendlyne’s Forecaster estimates by 43.7%. 

Since Monday the stock has been rising. It also shows up in this screener where the companies which announced their results with rising operating profit margin and net profit growth. ICICI Securities maintains a ‘Buy’ stance on its robust order book and its foray into non-defence segments and increasing exports. The company’s order book stands at Rs 55,333 crore as on July 1. Orders came in not only from the defence segments (arms and ammunition) but also from other non-defence sectors like medical electronic devices and manufacturing electronic products for civil aviation, railways and metros. 

  1. Wipro: This IT services company’s stock hit a 52-week low of Rs 391 on July 15 after Q1FY23 results of its peers like HCL Technologies and Tata Consultancy Services showed that the industry might be facing cost pressures and revenue growth related headwinds. Investors were relieved when Wipro’s stock traded higher for the last three consecutive sessions, but it fell on Thursday after its Q1FY23 results showed a 17% fall in its net profit to Rs 2,563.6 crore This led to Wipro entering this screener of companies which reported a QoQ and YoY decline in net profit. It has also underperformed its industry by 12.5% over the past 90 days.

The company’s management is confident that its clients aren’t planning cuts in technology spends, and does not anticipate any demand slowdown. However, since Wipro’s major business comes from consulting, and given a weak macro environment, this segment is likely to see headwinds. According to a report from ICICI Securities, its capital allocation into the consulting business is already seeing problems because of high investments made. This could impact overall earnings in FY23.

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

 
T
Trendlyne Marketwatch
22 Jul 2022, 03:50PM
Market closes higher, UltraTech Cement's net profit falls 7% YoY to Rs 1,584.1 crore

Trendlyne Analysis

Nifty 50 closed higher with the volatility index, India VIX, below 17%. Indian indices closed higher for a sixth straight session. Reserve Bank of India’s Governor Shaktikanta Das said that the central bank "will continue to engage with the foreign exchange market to ensure the rupee finds its level." Meanwhile, Asian Development Bank or ADB slashed India’s GDP growth forecast to 7.2% from 7.5% for FY23. European markets traded flat to higher as investors assessed the European Central Bank’s larger-than-expected 50 bps interest rate hike.

Most Asian indices closed in the green, tracking the US indices which closed higher on Thursday. The tech-heavy index, NASDAQ 100 rose 1.4% while the Dow Jones closed 0.5% higher. The euro is set for its best week against the US dollar since May after the European Central Bank raised interest rates by 50 basis points to 0%. Brent crude oil futures rose after falling about 2.5% on Thursday due to weakened crude oil demand in the US.

Nifty Midcap 100 closed flat, despite the benchmark index closing in the green. Nifty Bank and Nifty Auto closed higher than Thursday’s levels. Nifty IT, which opened in the green, closed 0.6% lower.

Nifty 50closed at 16,714.30 (109.1, 0.7%), BSE Sensexclosed at 56,072.23 (390.3, 0.7%) while the broader Nifty 500closed at 14,327.05 (55.3, 0.4%)

Market breadth is holding steady. Of the 1,897 stocks traded today, 937 showed gains, and 899 showed losses.

  • Ajanta Pharma, Kansai Nerolac Paints, Supreme Industries, and CESC are trading with higher volumes as compared to Thursday.

  • Atul sees a long build-up in its July 28 future series as its open interest rises 9.2% with a put-call ratio of 0.51.

  • UltraTech Cement is rising despite its net profit falling 7% YoY to Rs 1,584.1 crore while revenue jumps 28.2% YoY to Rs 15,164 crore. Revenue grows on the back of price hikes and rising sales volumes. Profit falls due to power and fuel costs rising 65.3% YoY to Rs 4,013.1 crore and freight expenses increasing 24.2% YoY to Rs 3,290.6 crore.

  • TVS Motor hits an all-time high of Rs 898.7 during trade today. The stock is rising for two consecutive days after the company's management announced that it is lining up fresh investments for Rs 1,000 crore in its electric vehicle business to double its capacity to 25,000 units per month by the end of 2022, and 50,000 units in 2023.

  • India plans to import 76 million tonnes of coal in FY23 to meet the shortage of coal as Coal India's production will slow down in August and September due to the monsoons. This move may cause an increase in electricity tariff rates because of expensive coal imports.

  • Crompton Greaves Consumer Electricals’ Q1FY23 net profit rises 32.9% YoY to Rs 125.9 crore. However, net profit falls 22.7% QoQ due to a 17.7% QoQ rise in raw material cost to Rs 1,278 crore and employee expense rising 71.7% to Rs 143.4 crore. Revenue increases 77.3% YoY to Rs 1,862.9 crore with revenue from electric consumer durables rising 52.3% YoY to Rs 1,347.2 crore. Butterfly products also add to revenue growth, contributing Rs 253 crore.

  • HDFC AMC is falling after its Chief Investment Officer Prashan Jain resigns from his post after 19 years

  • HDFC Securities maintains its ‘Add’ rating on Wipro and cuts the target price to Rs 475 from Rs 490, indicating an upside of 15.3%. It cut its target price as the company’s Q1FY23 net profit falls 17% QoQ. However, the brokerage remains positive on the company’s prospects due to it booking 18 large deals in Q1FY23 with a total contract value of $1.1 billion. It also sees the company’s stronger growth in headcount and lower attrition rates relative to its peers as a key positive. The brokerage estimates the company’s revenue to grow at a CAGR of 12.9% over FY22-24.

  • Asian Development Bank cuts India’s growth forecast to 7.2% for FY23 from 7.5% on higher inflation and monetary tightening.

  • RBL Bank reports a net profit of Rs 201.2 crore in Q1FY23 against a loss of Rs 459.5 crore in Q1FY22 as provisions fall 81.7% YoY to Rs 253 crore. Interest earned rises 3.1% YoY to Rs 2,089.3 crore, however, it falls 1.9% QoQ. The bank's asset quality improves as gross NPAs fall by 91 bps YoY to 4.1% and net NPAs fall by 85 bps YoY to 1.2%.

  • Cyient is falling as its Q1FY23 net profit declines 24.7% QoQ to Rs 116.1 crore but revenue rises 5.8% QoQ to Rs 1,250.1 crore. EBIT margin falls 298 bps QoQ to 11.5%. Profit falls as employee benefits expense rises 10.5% QoQ to Rs 638 crore. Attrition rate rises 170 bps QoQ to 27.9%.

  • Gujarat State Fertilizer & Chemicals is trading with more than 19 times its weekly average trading volume. MOIL, Sheela Foam, Balaji Amines, and Can Fin Homesare trading at more than six times their weekly average trading volumes.

  • IndiaMART InterMESH is falling as the company's Q1FY23 profit falls 46.9% to Rs 46.7 crore despite marginal rise in revenue of 6.9% to Rs 225.6 crore. The profit falls as employee benefit expenses rises 68% to Rs 92.5 crore and and other expense rises 79% to Rs 67.8 crore.

  • IT stocks like Mphasis, Tech Mahindra, Infosys among others, are falling in trade. The broader Nifty IT index also trades in the red.

  • Mphasis falls despite its net profit rising 2.5% QoQ to Rs 401.8 crore in Q1FY23. Revenue increases by 4.1% QoQ to Rs 3,411.2 crore with logistics and transportation segment growing 6% QoQ to Rs 441 crore. However, revenue from insurance segment fell 3.1% QoQ to Rs 300.2 crore. The company guides for an EBIT margin of 15.25-17% in FY23.

  • Reserve Bank of India’s (RBI) Governor is positive on the growth prospects of the Indian economy while remaining watchful on the movement of the rupee. He believes any spillover impact on the Indian economy due to global headwinds will be modest.

  • Crisil is falling despite its Q1FY23 net profit rising 35.8% YoY to Rs 136.9 crore and revenue rising 26.5% YoY to Rs 668.5 crore. Revenue growth is led by the research services segment rising 32.1% YoY to Rs 469.5 crore. However, the EBITDA margin falls 110 bps YoY to 25.3%.

  • Gujarat State Fertilizers & Chemicals is rising as the company's Q1FY23 net profit increases 154% YoY to Rs 345 crore. Revenue from operations rises 63.1% YoY to Rs 3,018.2 crore helped by revenue of fertilizer products rising 82.9% YoY to Rs 2,279.3 crore.

  • Persistent Systems is rising as its Q1FY23 net profit rises 5.3% QoQ to Rs 211.6 crore and revenue rises 14.7% YoY to Rs 1,878.1 crore. Revenue grows on the back of the banking, financial services and insurance segment rising by 19.2% QoQ to Rs 634.4 crore and the software segment rising 13.4% QoQ to Rs 871.6 crore. Profit is hit due to employee benefits expenses rising 10.2% QoQ to Rs 1,110.6 crore and the cost of professionals rising 21.7% QoQ to Rs 260.3 crore.

  • Dolly Khanna buys a 1.2% stake in Suryoday Small Finance Bankfor Rs 10 crore during Q1FY23. She also bought a 0.3% stake in Prakash Pipes, which took here stake in the company to 2.7% at the end of the quarter.

  • NLC India is rising as its board approves investment of Rs 14,945 crore to set up a mining and power plant in Neyveli, Tamil Nadu. It plans to invest Rs 3,755.7 crore in setting up a mining plant and Rs 11,189.2 crore for the second expansion of thermal power station.

  • JSW Energy’s Q1FY23 net profit rises 2.6X YoY to Rs 554 crore as revenue increases 75.2% YoY to Rs 3,026.3 crore. Sale of power in the short term market at 874 million units (up nearly 6X YoY) and an increase in capacity at Vijayanagar plant led to higher revenues in Q1FY22. Still, EBITDA margin is down 9 percentage points to 36% in Q1FY23 as fuel expenses rise 92% YoY to Rs 1,559.3 crore.

Riding High:

Largecap and midcap gainers today include Atul Ltd. (8,659.65, 5.51%), UltraTech Cement Ltd. (6,458.70, 5.35%) and Grasim Industries Ltd. (1,521.35, 3.87%).

Downers:

Largecap and midcap losers today include Syngene International Ltd. (572.65, -4.38%), ABB India Ltd. (2,696.40, -2.75%) and Deepak Nitrite Ltd. (1,815.90, -2.69%).

Crowd Puller Stocks

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

Top high volume gainers on BSE included Gujarat State Fertilizer & Chemicals Ltd. (163.75, 14.71%), MOIL Ltd. (161.00, 8.42%) and Cera Sanitaryware Ltd. (4,563.20, 6.22%).

Top high volume losers on BSE were IndiaMART InterMESH Ltd. (4,074.45, -4.27%), SRF Ltd. (2,290.55, -2.26%) and Crompton Greaves Consumer Electricals Ltd. (377.05, -1.69%).

Atul Ltd. (8,659.65, 5.51%) was trading at 19.2 times of weekly average. Sheela Foam Ltd. (2,845.70, 5.55%) and Balaji Amines Ltd. (3,319.60, 6.13%) were trading with volumes 16.4 and 9.5 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

10 stocks took off, crossing 52-week highs,

Stocks touching their year highs included - Bajaj Auto Ltd. (4,054.50, -0.06%), Bharat Electronics Ltd. (266.80, -0.71%) and Blue Dart Express Ltd. (8,372.05, 0.59%).

23 stocks climbed above their 200 day SMA including Balaji Amines Ltd. (3,319.60, 6.13%) and Aegis Logistics Ltd. (258.50, 5.66%). 14 stocks slipped below their 200 SMA including Syngene International Ltd. (572.65, -4.38%) and KPR Mill Ltd. (573.60, -4.18%).