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Trendlyne Marketwatch
Trendlyne Marketwatch
10 May 2022

Nifty 50 closed at 16240.05 (-61.8, -0.4%) , BSE Sensex closed at 54364.85 (-105.8, -0.2%) while the broader Nifty 500 closed at 13855.95 (-135.8, -1.0%)

Market breadth is sharply down. Of the 1881 stocks traded today, 338 were in the positive territory and 1520 were negative.

Riding High:

Largecap and midcap gainers today include Eicher Motors Ltd. (2415.55, 3.04%), Hindustan Unilever Ltd. (2180.40, 3.01%) and Asian Paints Ltd. (3086.35, 2.70%).

Downers:

Largecap and midcap losers today include Oil India Ltd. (215.25, -8.95%), Adani Transmission Ltd. (2482.55, -8.17%) and Adani Green Energy Ltd. (2486.70, -8.12%).

Movers and Shakers

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

Top high volume gainers on BSE included Gujarat Narmada Valley Fertilizers & Chemicals Ltd. (816.95, 7.76%), Minda Industries Ltd. (892.60, 5.44%) and Berger Paints (India) Ltd. (676.60, 1.85%).

Top high volume losers on BSE were Gujarat Fluorochemicals Ltd. (2315.90, -5.00%), Indostar Capital Finance Ltd. (174.95, -5.00%) and SRF Ltd. (2113.15, -5.00%).

Cera Sanitaryware Ltd. (3839.15, -0.66%) was trading at 16.8 times of weekly average. Venky's (India) Ltd. (1983.95, -4.24%) and Godrej Agrovet Ltd. (506.80, -3.66%) were trading with volumes 7.2 and 4.9 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

2 stocks took off, crossing 52 week highs, while 44 stocks tanked below their 52 week lows.

Stocks touching their year highs included - Power Grid Corporation of India Ltd. (243.65, -0.61%) and Esab India Ltd. (3383.20, -0.62%).

Stocks making new 52 weeks lows included - Amara Raja Batteries Ltd. (513.45, -1.39%) and Zydus Lifesciences Ltd. (330.10, -1.71%).

21 stocks climbed above their 200 day SMA including Minda Industries Ltd. (892.60, 5.44%) and Brightcom Group Ltd. (68.60, 4.97%). 19 stocks slipped below their 200 SMA including Tata Steel Ltd. (1164.90, -6.98%) and Tanla Platforms Ltd. (1224.95, -6.42%).

 
Trendlyne Marketwatch
Trendlyne Marketwatch
09 May 2022
Market closes lower, LIC’s IPO gets bids for 2.5X of the total available shares

Trendlyne Analysis

Nifty 50 closed in the red, with the Indian volatility, India VIX rising above 22%. Asian stocks trade lower, tracking the US indices, which closed in the red on Friday. Market volatility is expected to continue this week as investors remain cautious of prevailing high inflation levels and the impact of rate hikes on the economy. China tightened the lockdown in Shanghai to curb the spread of Covid 19 leading to concerns about slow economic growth. Crude oil falls as investors monitor talks at the European Union on a Russian oil embargo that is expected to tighten global supplies. European indices follow the global trend and trade lower than Friday’s levels.

Nifty Smallcap 100 and Nifty Next 50 closed in the red, following the benchmark index. Nifty Energy and Nifty Auto also closed lower than Friday’s levels. Nifty IT closed flat with the prospect of an increase in profitability through forex gains as the Indian rupee hits a new lifetime low of Rs 77.48 against the US dollar.

Nifty 50closed at 16,301.85 (-109.4, -0.7%), BSE Sensexclosed at 54,470.67 (-364.9, -0.7%) while the broader Nifty 500closed at 13,991.75 (-154, -1.1%)

Market breadth is overwhelmingly negative. Of the 1,896 stocks traded today, 412 were gainers and 1,444 were losers.

  • Tube Investments of India, Saregama India, Krishna Institute of Medical Sciences, and Aditya Birla Sun Life AMC are trading with higher volumesas compared to Friday.

  • Navin Fluorine International sees a short build-up in its May 26 futures series. Its open interest rises sharply by 24.6% with put to call ratio at 0.41

  • Larsen & Toubroreceives order worth Rs 1,000-2,500 crore from the department of water resources, the Government of Jharkhand to execute the Masalia Ranishwar megalift irrigation scheme on a turnkey basis. The scope of the project includes survey, design, and construction of a 158 m long barrage across the Sidheshwari river.

  • HDFC Securities maintains a ‘Buy’ rating on Cholamandalam Investment and Finance with a target price of Rs 788, indicating an upside of 23.9%. The brokerage is positive about the company’s prospects due to its robust disbursals, high growth of new business, and rising assets under management.

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

  • ICICI Bank, Ambuja Cements, Tata Chemicals, and KPIT Technologies, among others, are outperforming the Nifty 50 index over the past week, post Q4FY22 results.

  • Life Insurance Corporation of India’s Rs 21,008.4-crore IPO gets bids for 2.9X of the available 16.2 crore shares on offer on the last day of bidding. The retail investor quota gets bids for 1.9X of the available 6.9 crore shares on offer.

  • UPL’s Q4FY22 net profit rises 29.7% YoY to Rs 1,379 crore and revenue rises 24.2% YoY to Rs 15,977 crore on the back of price hikes and a better product mix. EBITDA margin rises by 7.5 percentage points YoY to 35.9% on higher revenue.

  • Apollo Tricoat Tubes' Q4FY22 net profit falls 10% YoY to Rs 30.8 crore despite its revenues rising 77.5% to Rs 830.5 crore. Sales growth is primarily driven by realizations as volumes fell 2% YoY to 64,746 tonnes. Moreover, higher inputs costs ultimately hit the profitability of the company.

  • DCB Bank’s Q4FY22 net profit rises 45.5% YoY to Rs 113.4 crore and revenue rises 6.5% YoY to 1,034.7 crore on rising business volumes from the retail banking segment. The retail banking segment rises 10.5% YoY to Rs 879.4 crore. Net interest margin rises 47 bps YoY to 3.9% and net NPA ratio falls by 34 bps YoY to 1.97%.

  • Aditya Birla Sun Life AMC is trading with more than 12 times its weekly average trading volume. Procter & Gamble Health, Privi Speciality Chemicals, Navin Fluorine International, and Go Fashion (India) are trading at more than two times their weekly average trading volumes.

  • BOB Capital Markets maintains a ‘Hold’ rating on Blue Star with a target price of Rs 1,200, indicating an upside of 10%. The brokerage remains positive about the company's prospects in its electro-mechanical and commercial air conditioning systems segment. The brokerage expects the company’s revenue to grow at a 15.2% CAGR over FY22-24.

  • Indian rupee falls to an all-time low of Rs 77.4 against the US dollar. This is because of the continuous dump of domestic stocks by foreign investors. Foreign investors sell Rs 6,400 crore worth of shares in the last week.

  • SJVN wins a 25-year floating solar power project worth Rs 585 crore based in Madhya Pradesh. The company will generate 218.5 million units of power in the first year and 5,158 million units of power for the entire duration of the project. The company also bags a wind-solar hybrid project worth Rs 195 crore.

  • Navin Fluorine International’s Q4FY22 net profit rises marginally by 0.5% YoY to Rs 75.2 crore. However, revenue rises 17.1% YoY to Rs 421.3 crore driven by robust growth of 21.4% YoY in the speciality chemicals segment. EBITDA margin falls by 238 bps YoY to 23% due to high input costs and employee costs.

  • Campus Activewear shares list at a 23% premium to the issue price of Rs 292 on its debut on the bourses after getting bids for 51.2X of the total shares on offer.

  • Lupin receives US Food & Drug Administration (USFDA) approval for its Lloperidone tablets and Pregabalin capsules. Lloperidone is a generic equivalent of Fanapt tablets, which has a US market size of $162 million. Pregabalin capsule is a generic equivalent of Lyrica capsule that has a US market size of $263 million.

  • Larsen & Toubro Infotech's Chief Executive Officer and Managing Director Sanjay Jalona resigns from the position due to personal reasons on Friday.

  • Larsen & Toubro Infotech (LTI) and Mindtree are set to merge, creating India’s sixth-largest IT services company a with combined revenue of Rs 26,000 crore. The merged entity is to be called LTIMindtree. According to the merger terms, shareholders of Mindtree will be issued 73 shares of LTI for every 100 shares held in Mindtree.

  • Tata Power’s Q4FY22 net profit rises 28% YoY to Rs 503.1 crore which includes a deferred tax credit of Rs 588 crore. The company’s revenue rises 16.8% to Rs 12,219.4 crore on the back of growth in its transmission and distribution businesses. Net profit rises 54.5% YoY in FY22 to Rs 1,741.5 crore and revenues increase by 32% to Rs 43,735.6 crore.

  • Reliance Industries falls even though its Q4FY22 net profit rises 22.5% YoY to Rs 16,203 crore with increase in revenue by 36.7% YoY to Rs 2.1 lakh crore. Most of the revenue growth came from O2C (oil to chemicals) because of high energy prices and its retail business. The company recommends a dividend of Rs 8 per equity share.

Riding High:

Largecap and midcap gainers today include Indus Towers Ltd. (205.90, 3.52%), Federal Bank Ltd. (93.80, 2.96%) and Oil India Ltd. (236.40, 2.83%).

Downers:

Largecap and midcap losers today include Canara Bank (201.35, -8.21%), Tata Power Company Ltd. (230.00, -6.20%) and Adani Green Energy Ltd. (2,706.40, -5.86%).

Volume Shockers

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

Top high volume gainers on BSE included BASF India Ltd. (2,808.55, 8.40%), NOCIL Ltd. (245.60, 6.41%) and Cholamandalam Financial Holdings Ltd. (613.70, 4.50%).

Top high volume losers on BSE were Hindustan Copper Ltd. (94.40, -9.75%), Bajaj Electricals Ltd. (1,011.15, -7.45%) and Bajaj Consumer Care Ltd. (152.05, -6.03%).

DCB Bank Ltd. (80.90, 3.78%) was trading at 24.5 times of weekly average. Kajaria Ceramics Ltd. (1,010.35, -1.24%) and Procter & Gamble Health Ltd. (4,388.50, 1.44%) were trading with volumes 8.7 and 5.5 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 42 stocks tanked below their 52-week lows.

Stock touching their year highs included - Power Grid Corporation of India Ltd. (245.15, 2.83%).

Stocks making new 52 weeks lows included - 3M India Ltd. (18,735.75, 1.55%) and Amara Raja Batteries Ltd. (520.70, -1.83%).

4 stocks climbed above their 200 day SMA including Federal Bank Ltd. (93.80, 2.96%) and Krishna Institute of Medical Sciences Ltd. (1,286.70, 2.55%). 39 stocks slipped below their 200 SMA including Canara Bank (201.35, -8.21%) and APL Apollo Tubes Ltd. (893.75, -5.92%).

 
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The Baseline
09 May 2022
Five analyst stock picks this week
  1. Mphasis: ICICI Direct maintains a ‘Buy’ call on this IT services company with a target price of Rs 3,410, indicating an upside of 26.7%. In Q4FY22, the company’s revenue increased 4.8% QoQ to Rs 3,245 crore and profit by 9.6% QoQ to Rs 392 crore. According to the analyst Sameer Pardikar the profit growth was aided by higher other income. 

“Strategy to mine top 10-20 clients, adding high potential new logos, rise in deal sizes & expansion in Europe bodes well for long term growth” for the company, says Pardikar. The analyst expects improving deal size, market share gains via vendor consolidation, low legacy exposure, and exposure to lesser impacted verticals will drive 22% CAGR growth in direct revenues in FY22-24. The analyst also adds that improving revenue trajectory will boost EBIT margins by 70 bps to 16.0% in FY22-24.

  1. Titan: Motilal Oswal maintains its ‘Buy’ rating on this jewellery maker’s stock with a target price of Rs 2,900. This indicates an upside of 31.9%. Analysts Krishnan Sambamoorthy, Kaiwan Jal Olia, and Aditya Kasat say the “Q4FY22 result was above expectations, led by healthy sales growth in the non-jewelry segments.” In Q4FY22, the company reported a profit of Rs 660 crore, up 16.7% YoY, and consolidated revenue of Rs 7,800 crore, up 4% (the brokerage estimates were Rs 490 crore and Rs 7,270 crore, respectively) 

The analysts add that “new customer additions remain strong, indicating continued market share gains from the competition (and) despite the volatility in gold prices and COVID-led disruptions, its earnings CAGR has been stellar (24%) for the past five-years ending FY22.” They expect this trend to continue.

  1. Can Fin Homes: Edelweiss maintains its ‘Buy’ rating on this mortgage lender’s stock with a target price of Rs 800, indicating an upside of 54.7%. The brokerage remains positive about the company’s prospects given its robust Q4FY22 results and improving asset quality. The company’s net profit grew 20% YoY to Rs 123 crore and its net non-performing assets (NNPA) ratio fell 31 bps YoY to 0.3%. Analyst Jigar Jani says “Can Fin Homes’ Q4FY22 results beat our estimates on the net revenue and PPOP (pre-provision operating profit) fronts by 10% and 9%, respectively”. 

Jani said growth was recorded across the board, with AUM (assets under management) growing 21% YoY to Rs 26,711 crore, driven by a sharp rise of 35% YoY in disbursements. NII (net interest income) grew 28% YoY to Rs 237 crore, driven by an improvement in insurance income, which is linked to disbursements. The analyst expects the loan book to expand at a CAGR of 20% and net profit to grow at a CAGR of 20.6% over FY22-24.

  1. Housing Development Finance Corporation(HDFC): Prabhudas Lilladher maintains its ‘Buy’ rating on this housing finance company, but cut its target price to Rs 2,900 from Rs 3,228, indicating an upside of 34.5%. Analysts Gaurav Jani and Palak Shah say, “HDFC reported a good quarter with all core metrics beating estimates. Individual disbursals saw an accretion of 18% YoY. Affordable housing saw good traction. Individual loan disbursals saw a 37% YoY growth in FY22”. Net interest income grew by 14% YoY to Rs 4,600 crore and asset under management grew by 14% YoY to Rs 5.7 lakh crore. 

According to the analysts, the company’s management indicated that home loan demand remains strong while construction finance could see an uptick and the management commentary also suggested that home loan demand remained strong while the pipeline in construction finance and lease rental discounting was healthy. In terms of the HDFC and HDFC bank synergies the analysts say, “post the merger, all bank branches would source home loans which could drive strong home loan growth”.

  1. Central Depository Services (India) (CDSL): HDFC Securities maintains a ‘Buy’ rating on this depository services provider’s stock but has lowered its target price to Rs 1,500 from Rs 1,800, indicating an upside of 26.6%. The brokerage cut its target price as CDSL’s Q4FY22 revenue missed its estimate by 14.6%. Analysts Amit Chandra and Vinesh Vala say “the estimates were missed due to a sharp fall in IPO/corporate action revenue”. However, they remain positive about the company’s prospects as they expect steady annuity revenue, growth in BO (beneficiary owner) accounts, and IPO revenue led by the LICIPO.

The analysts expect CDSL’s growth rate to moderate to the pre-pandemic level of 16% CAGR, following two years of robust growth of more than 50% YoY. The analysts expect an EBITDA margin of 67% in FY24 over FY23, and revenue to grow at a 15.4% CAGR over FY22-24. They also expect the company to gain a market share of 70% due to steady growth in the addition of BO accounts.

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

 
Trendlyne Talk
Trendlyne Talk
08 May 2022
Even Better: New Compare Stocks, IPO Dashboard, App Launches

You have been writing to us regularly with new feature requests. Our engineering team has been on it, and some of the most popular requests just went live!

1) Compare any two stocks: You hold Infosys but wonder about TCS. You have ICICI Bank but dream about HDFC Bank. Is the grass really greener on the other side? Now you can find out with our Compare Stocks tool, where you can compare a stock with any other.

2) IPO Dashboard: The new IPO Dashboard analyzes all live and upcoming IPOs, providing strengths and weaknesses of upcoming listings as well as the performance (including gains till date) of recent listings. See the dashboard as well as details of new IPOs including LIC, Venus Pipes and Delhivery. 

3) And the Trendlyne app just got prettier and more powerful: We have added new updates, including Futures & Options and Dark Mode. Update/download the app to get the new features.

Stay safe in volatile markets, 

As always,

The Trendlyne Team

 
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The Baseline created a screener Top Gainers
07 May 2022
Stocks that are top gainers today
 
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The Baseline created a screener All Stars: High Scorers …
07 May 2022
Stocks that score high across key metrics: DVM, Piotroski Score, Buy-Sell Zone, Consensus Estimates and SWOT
 
Trendlyne Marketwatch
Trendlyne Marketwatch
06 May 2022
Market closes in red, Canara Bank’s Q4FY22 net profit rises 38.6% YoY to Rs 1,918.8 crore

Trendlyne Analysis

Indian indices ended the week in red amid weak global cues. Asian indices closed lower, tracking the US indices which closed sharply lower on Thursday. The tech-heavy US index NASDAQ 100 shed over 5% as investors continue to digest the US Federal Reserve’s rate hike and commentary by its Chairman Jerome Powell on Wednesday. The Bank of England hiked its interest rate to 1% on Thursday as it handed down its policy decision and also warned of the possibility of double-digit inflation, a prolonged period of stagflation, or even recession. Crude oil continues to trade at elevated levels as the European Union plans to ban Russian oil in six months. European indices follow the global trend and open lower than Thursday’s levels.

Nifty Midcap 100 and Nifty Smallcap 100 closed in the red, following the benchmark index. Nifty Auto and Nifty Media closed lower than Thursday’s levels. Nifty IT also closed in the red, taking cues from the tech-focused NASDAQ 100, which fell over 5% on Thursday.

Nifty 50 closed at 16411.25 (-271.4, -1.6%) , BSE Sensex closed at 54,835.58 (-866.7, -1.6%) while the broader Nifty 500 closed at 14,145.75 (-249.8, -1.7%)

Market breadth is highly negative. Of the 1,858 stocks traded today, 314 were on the uptrend, and 1,523 went down.

  • Pfizer, Varun Beverages, Bayer Cropscience, and Aditya Birla Sun Life AMC are trading with higher volumes as compared to Thursday.

  • Delivery volumes of stocks like Route Mobile, Ashok Leyland, Dalmia Bharat, and Cipla, among others, are rising ahead of their Q4FY22 results to be announced over the next two weeks.

  • ICICI Securities re-initiates coverage on Reliance Industries with an ‘Add’ rating and a target price of Rs 2,960, indicating an upside of 12%. The brokerage expects robust profit growth for the company over FY22-24 driven by favourable OTC (oil to chemicals) market conditions, steady growth in digital services, and strong momentum in its retail segment.

  • Adani Wilmar hits the lower circuit during trade, falls for six trading sessions

  • Canara Bank’s Q4FY22 net profit rises 38.6% YoY to Rs 1,918.8 crore and revenue rises 5.3% YoY to Rs 24,518.4 crore driven by growth in the treasury operations segment. Net interest income rises 24.8% YoY to Rs 7,005 crore and the net NPA (non-performing assets) ratio falls by 117 bps YoY to 2.6%.

  • Life Insurance Corporation of India’s Rs 21,008.4-crore IPO gets bids for 1.4X of the available 16.2 crore shares on offer on the third day of bidding. The retail investor quota gets bids for 1.2X of the available 6.9 crore shares on offer.

  • Motilal Oswal maintains a ‘Buy’ rating on Eris Lifesciences with a target price of Rs 870, indicating an upside of 30%. The brokerage remains positive about the company on the back of its acquisition of Oaknet Healthcare, allowing the company to foray into dermatology segment. Motilal Oswal expects the company’s revenue to grow at 21.7% CAGR over FY22-FY24.

  • The Fertilisers and Chemicals Travancore is trading with more than 12 times its weekly average trading volume. Krishna Institute of Medical Sciences, Coforge, Blue Star, and Hikal are trading at more than six times their weekly average trading volumes.

  • Stocks like Bajaj Finance, Apollo Hospitals Enterprise, Alkem Laboratories, ICICI Securities, and Jindal Stainless, among others, are in the oversold zone according to the technical indicator relative strength index or RSI.

  • Nazara Technologies and Wipro touch 52-week low of Rs 1,376 and Rs 477.8 respectively. Both stocks are falling for three consecutive sessions.

  • Solar Industries India (including subsidiaries) and Premier Explosives receive orders from Singareni Collieries Company for the supply of site mixed emulsion explosives, large-diameter cartridge explosives, and other accessories for blasting. Solar Industries India's order is worth Rs 1,563 crore while Premier Explosives order is worth Rs 104.8 crore.

  • Metal stocks like JSW Steel, Tata Steel, Vedanta, Hindustan Zinc, and Hindalco Industries, among others are falling in trade. The broader sectoral index Nifty Metal is also trading in the red.

  • DCM Shriram’s Q4FY22 profit rises 73% YoY to Rs 401.2 crore and revenues increase by 30.6% to Rs 2,901.6 crore. The company’s sugar segment revenue rises 32.8% YoY in Q4FY22 to Rs 832.3 crore. Net profit rises 58.5% YoY in FY22 to Rs 1,067.4 crore and revenues increase by 18.3% YoY to Rs 8,400.2 crore.

  • Marico’s Q4FY22 net profit rises 14.6% YoY to Rs 251 crore and revenue rises 7% YoY to Rs 2,185 crore on the back of growth in the international business segment. The revenue from the international business segment rises 12% YoY to Rs 507 crore and the India business segment rises 5% YoY to Rs 1,654 crore.

  • Happiest Minds Technologies’ Q4FY22 net profit rises 6.5% QoQ to Rs 52.1 crore and revenue rises 6.2% QoQ to Rs 310.5 crore. The maximum revenue growth came from the product engineering services (PES) and infrastructure management and security services (IMSS) segments at 6.5% QoQ and 8.3% QoQ, respectively. EBITDA rises 6.1% QoQ to Rs 81.6 crore and attrition rises by 160 bps QoQ to 22.7%.

  • Sona BLW Precision Forgings' Q4FY22 net profit jumps 75% YoY to Rs 105 crore despite revenues rising just 2% YoY to Rs 550 crore. Profit rises due to one-time adjustments made in the Q4FY21 and Q4FY22 numbers. The battery electric vehicle division reports a 2X YoY rise in Q4 revenues and company also wins new orders worth Rs 2,000 crore for the same.

  • Oil prices fall as speculation of an economic downturn dampens the demand for crude oil. New sanctions against Russia by the European Union add to the woes. Brent futures fell 0.3% to $110.53 per barrel today. Oil and gas stocks like ONGC, Hindustan Oil Exploration, among others, fall in trade today.

  • TVS Motors' Q4FY22 net profit falls over 10% YoY to Rs 278 crore while its operating revenues rise 7.4% YoY to Rs 6,585.2 crore. Revenues rise on the back of healthy sales realizations despite its volumes falling 8% YoY in Q4FY22. However, higher input costs and semi-conductor shortages hit TVS Motors' profitability

  • Voltas is falling as its Q4FY22 net profit falls 23.2% YoY to Rs 182.7 crore. Total revenues stay flat at Rs 2,703 crore on the back of low demand for its unitary cooling products. Net profit falls 4% YoY to 504.1 crore but revenues increase by 4.9% to Rs 8,123 crore.

  • Blue Star’s Q4FY22 net profit rises 12% YoY to Rs 76.2 crore and revenues increase by 36.5% to Rs 2,253.8 crore. Electro-mechanical and commercial air conditioning systems segment revenue rises 45.7% YoY to Rs 1,136 crore on the back of strong demand. Net profit rises 67% YoY in FY22 to Rs 167.7 crore and revenues increase by 40.5% to Rs 6,081 crore.

  • Ceat’s Q4FY22 net profit falls 84% YoY to Rs 25 crore as total expenses rise 19% YoY to Rs 2,570.6 crore. The rise in total expenses is because of an increase in the cost of materials by 22.3% YoY to Rs 1,768.4 crore. However, revenue from operations rises 13.2% YoY to Rs 2,591.9 crore.

Riding High:

Largecap and midcap gainers today include Adani Power Ltd. (292.05, 5.00%), NHPC Ltd. (33.75, 4.17%) and Hero MotoCorp Ltd. (2,563.35, 2.47%).

Downers:

Largecap and midcap losers today include Vedanta Ltd. (360.40, -11.06%), Cholamandalam Investment & Finance Company Ltd. (636.85, -10.97%) and Voltas Ltd. (1,069.30, -7.62%).

Volume Shockers

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

Top high volume gainers on BSE included CSB Bank Ltd. (227.85, 9.97%), Dhanuka Agritech Ltd. (702.45, 2.76%) and Happiest Minds Technologies Ltd. (1,003.00, 1.29%).

Top high volume losers on BSE were Cholamandalam Investment & Finance Company Ltd. (636.85, -10.97%), Coforge Ltd. (3,905.40, -6.38%) and Sobha Ltd. (558.40, -6.20%).

Krishna Institute of Medical Sciences Ltd. (1,254.75, -4.03%) was trading at 11.3 times of weekly average. Heidelberg Cement India Ltd. (189.90, -0.94%) and Blue Star Ltd. (1,071.95, -1.83%) were trading with volumes 10.0 and 8.2 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

33 stocks hit their 52 week lows.

Stocks making new 52 weeks lows included - 3M India Ltd. (18,449.95, -0.52%) and Indus Towers Ltd. (198.90, -1.58%).

3 stocks climbed above their 200 day SMA including Vinati Organics Ltd. (1,969.05, 3.16%) and ABB India Ltd. (2,254.20, 1.49%). 36 stocks slipped below their 200 SMA including Deepak Nitrite Ltd. (2,028.60, -6.11%) and Torrent Power Ltd. (493.45, -5.65%).

 
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The Baseline
06 May 2022

Just one month ago, RBI Governor Shaktikanta Das was shrugging off India's rising inflation levels.  "I don’t see inflation going up beyond 6%," he said in mid-March, "In fact, our expectation is that it will moderate to 4.5%."

But then March inflation numbers saw India's CPI (Consumer Price Index) jumping to 6.95%, the highest since October 2020. Economists are expecting it to go even higher in April, and hit an inflation range of 7.4-7.5%. Inflation in May may also breach RBI's 6% target, hovering around 6.8%.

As the chart shows, the bank's main policy rate, the repo rate is now lagging inflation badly compared to historical levels. Since October 2021, consumer inflation has been steadily rising while the RBI held its repo rate unchanged at 4%. The RBI has not in recent history, left the repo rate unchanged for so long. 

As inflation broke RBI's acceptable ceilings, the Central Bank opted for an out-of-cycle rate hike of 40 bps this week. But it's not enough. We can now expect significant rate hikes in the June and August meetings of the Central Bank. The Indian economy will have to endure some pain in the short-term via rate hikes, to (hopefully) stabilize markets in the long term. 

 
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The Baseline
05 May 2022
Five Interesting Stocks Today

  1. Maruti Suzuki India: This carmaker’s stock has plunged 4% after it announced its wholesale numbers for April. Total wholesales fell 1.6% YoY to 1.57 lakh units while passenger vehicle wholesales fell 2.9% YoY to 1.52 lakh units. However, the company posted robust Q4FY22 results, as its net profit rose 51.1% YoY to Rs 1,875.8 crore, beating Trendlyne’s Forecaster estimates by 23.7%. Revenue grew 12.7% YoY to Rs 27,191.9 crore, even though the company sold 0.7% lower vehicles in Q4FY22 compared to Q4FY21. The rise in margins, despite the fall in volumes, is due to price hikes, lower discounts and softening of input costs. However, the company’s wholesales grew 14% QoQ in Q4FY22.

The management expects demand for the passenger vehicles for the industry to grow to 34-35 lakh units in FY23 driven by robust demand despite the Covid-19 headwinds. The company increased its focus on high-end compact and utility vehicles to regain its lost market share in this space. The demand momentum looks stable as the order book as of April, 2022 stands at 3.2 lakh units, up 21.2% from the end of December 2021. However, the shortage of semiconductors and electronic components will most likely affect production in FY23. Though raw material costs dipped in 4QFY22 as metal prices softened, the management expects inflation to kick in during H1FY23 led by high steel prices.

Brokerages like Axis Securities and Prabhudas Lilladher maintain a ‘Buy’ rating on the stock as they expect margins to expand on healthy demand and reduction in input costs. ICICI Direct maintains a ‘Hold’ rating due to the shortage of semiconductors despite healthy demand prospects.

  1. Tata Chemicals: This chemical company’s stock surged 11.7% after it announced its Q4FY22 results on April 29. Net profit surged 39X YoY to Rs 462.9 crore and revenue rose 32.8% YoY to Rs 3,586.9 crore. The company’s profit growth was driven by a revival in demand, a rise in export prices, absorption of high input costs, and lower taxes. EBITDA grew 133% YoY to Rs 657.4 crore due to improved realisations, despite high costs of gas, coal and freight.

The basic chemical segment accounts for 75% of the company’s revenue and the segment also saw the highest growth in Q4FY22 – grew 37.5% YoY to Rs 2,902 crore led by favourable soda ash market conditions. Globally, demand for soda ash is rising, led by demand for lithium carbonate batteries and solar panels. Motilal Oswal expects demand for soda ash to stay robust for the next 18-24 months due to supply constraints and container freight issues. The brokerage expects the tight demand-supply situation to benefit the company.

The highest revenue growth came in from the North American and Indian regions at 35.3% YoY and 31.8% YoY, respectively. The company has earmarked Rs 2,000 crore for capex to expand capacity in its India business during H2FY24. This capacity expansion will be spread over 5 years, which will increase the company’s production capacity of soda ash by 30%, soda bicarb by 40%, and silica by 5X.

  1. TVS Motor: This auto maker’s two-wheeler wholesales for the month of April 2022 rose 24% YoY to 2.8 lakh units, surpassing the growth rates of all other peers. The low base effect caused by the second Covid wave had a part to play here. This 20%+ YoY growth was primarily driven by TVS Motors’ scooter segment, the wholesales for which jumped over 50% YoY. The motorcycle segment on the other hand, posted lacklustre growth of just 4% YoY in April. Most two-wheeler makers except Bajaj Auto reported a YoY rise in their monthly wholesales for the first time in 2022 buoyed by the wedding and festive season. If we also consider the wholesales reported by TVS Motors for Q4FY22, it fell by just 8% YoY to 8,14,682 units, lower than the double-digit fall witnessed by all other competitors. Hence, its performance on the sales volume front was fairly resilient.  According to HDFC Securities, TVS Motors also gained market share on YoY basis in FY22 for both motorcycles and scooters segments.

The company reported a 7.4% YoY rise in its operating revenues while its profit fell over 10% YoY to Rs 278 crore. Higher input costs and semi-conductor shortages hit the profitability of the two-wheeler industry in FY22. But top players expect a strong pick-up in demand in next two months on improved rural sentiment. Outlook for TVS Motor is especially positive since it has a strong pipeline of 2W and 3W electric vehicles to be launched in the next 2 years.

  1. Alembic Pharmaceuticals: This pharma company’s stock fell over 8% intraday on Monday after it announced its Q4FY22 results. Its profit fell 86% YoY in Q4FY22 to Rs 35.6 crore mainly due to a Rs 188 crore worth of non-recurring expenses related to its wholly-owned subsidiary Aleor Dermaceuticals. As a result, the company’s net profit missed Trendlyne's Forecaster estimates by 76.6%. However, revenue rose 9% YoY in Q4FY22 to Rs 1,426 crore on the back of 17% growth to Rs 557 crore in the generic US business.

Alembic Pharma’s US business grew despite the prevailing pricing pressure in the US market, due to one-time sale opportunities, market share gain in a few products, and stock adjustments. The company also launched its first inhalation product in the US in Q4FY22. Alembic Pharma has invested about Rs 1,800 crore over recent years, geared towards US formulations including acquiring Aleor Dermaceuticals on March 29. Given the intense competition in the US market, pricing pressure will continue to impact the company’s margins in FY23. In Q4FY22, EBITDA margin (pre-research & development expenses) fell 12 percentage points YoY to 30% due to an increase in logistics costs, raw material costs, and pricing pressure.

Brokerages like ICICI Direct, BoBCaps, and Yes Securities maintained their ‘Hold’ rating but reduced the target price because of the margin pressure and additional integration costs for Aleor Dermaceuticals. The brokerages have a neutral outlook on the company because of the slow growth outlook in US generics and delay in its new product launches.

  1. Godrej Properties: This realty company’s stock fell by more than 5% on the bourses on Thursday even after its Q4FY22 results show a strong recovery. The company is back in the black with a net profit of Rs 260 crore against a loss of Rs 192 crore in Q4FY21. The booking value also sees a 111% jump sequentially to Rs 7,861 crore.

With demand picking up, the company’s collections in Q4 were its highest ever rising 44% YoY increase to Rs 2,900 crore. Brokerage Motilal Oswal is quite optimistic about the stock and expects the business momentum to continue over the next three years. It expects pre-sales CAGR to grow by 23% over FY22-24. On the other hand, Godrej Properties is also facing the brunt of inflation as its input costs see a 1.2X surge to Rs 1,166.2 crore. However, the company hiked its prices by 5-7% across its portfolio to mitigate margin pressures. However, with the recent repo rate hike by the Reserve Bank of India, home loans will get expensive soon. With most of its project pipeline of premium residential projects to be completed by H1FY23, it’ll be interesting to see if demand holds up.

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
05 May 2022
Market closes flat, LIC’s Rs 21,008 crore IPO gets bids for 88% of the total available shares on day 2

Trendlyne Analysis

Indian indices gave up most of their gains and closed flat on a volatile day of trade. The Nifty 50 closed flat today after falling 2.3% on Wednesday as the Reserve Bank of India (RBI) increased the repo rate by 40 bps to 4.4%. The Indian 10-year government bond yields rose in a reaction to the surprise announcement. On a global front, major Asian indices closed higher, tracking the US indices, which closed sharply higher on Wednesday. The US indices rose after the US Federal Reserve delivered an expected 50 bps hike in interest rates. The S&P 500 climbed close to 3%, recording its biggest one-day percentage gain in two years. Crude oil edges higher after European Union proposed new sanctions against Russia that included a ban on Russian crude oil in six months.

Nifty Smallcap 100, which opened in the green, closed lower while Nifty Midcap 100 closed flat, following the benchmark index. Nifty Metal and Nifty Auto closed higher than Wednesday’s levels. Nifty IT also closed in the green, tracking the tech-heavy NASDAQ 100, which gained 3.4% on Wednesday.

Nifty 50closed at 16,682.65 (5.1, 0.0%), BSE Sensexclosed at 55,702.23 (33.2, 0.1%) while the broader Nifty 500closed at 14,395.50 (2.2, 0.0%)

Market breadth is in the red. Of the 1,871 stocks traded today, 754 were on the uptrend, and 1,076 went down.

  • IFB Industries, AIA Engineering, Adani Total Gas, Natco Pharmaand are trading with higher volumesas compared to Wednesday.

  • Adani Power’s Q4FY22 net profit surges to Rs 4,650.6 crore from Rs 13.13 crore a year ago. Revenue from operations rise 66.2% YoY to Rs 10,597.8 crore on revenue from the power generation and related activities segment rising 68.2% YoY to Rs 10,179 crore. EBITDA surges 270.6% YoY to Rs 7,942 crore on the back of high growth in revenue.

  • Hem Securities maintains a ‘Buy’ rating on Sonata Software with a target price of Rs 839, indicating an upside of 18%. The brokerage remains positive about the company as its deal pipeline continues to be healthy through multiple new digital wins from existing and new customers.

  • Hero MotoCorp rises after the company hints at a healthy demand scenario in an analyst call on Wednesday. The company’s wholesales for April saw a healthy growth of 12.4% YoY to 4.2 lakh units because of an increase in motorcycle wholesales. The company believes that growth will accelerate once the chip shortages ease out.

  • Life Insurance Corporation of India’s Rs 21,008.4-crore IPO gets bids for 103% of the available 16.2 crore shares on offer on the second day of bidding. The retail investor quota gets bids for 93% of the available 6.9 crore shares on offer.

  • Metal stocks like Tata Steel, Vedanta, JSW Steel, Jindal Steel and Power, and NMDC, among others, are rising in trade. The broader sectoral index Nifty Metal is also trading in green.

  • IT stocks like Infosys, Coforge, Tech Mahindra, and L&T Technology Services among others are rising in trade. The broader sectoral index Nifty IT is also trading in green.

  • Sona BLW Precision Forgings (Sona Comstar) rises as it announces a partnership with C-Motive Technologies. The companies plan to develop the world’s first commercially viable electrostatic motor for electric vehicle applications. The production is likely to begin by 2026.

  • ABB India is trading with more than 22 times its weekly average trading volume. Westlife Development, Pfizer, Sonata Software, and Rain Industries are trading at more than two times their weekly average trading volumes.

  • Axis Securities maintains a ‘Buy’ rating on Can Fin Homes with a target price of Rs 790, indicating an upside of 23%. The brokerage remains positive for the company due to its favourable loan mix, comfortable liquidity position, and robust capital adequacy ratio (CAR) of 23.3%. The brokerage expects net profit to grow at a 17.6% CAGR over FY22-24.

  • Stocks like Schaeffler India, Crisil, United Breweries, and Trent, among others, are outperforming the Nifty 50 index over the week, post results

  • Larsen & Toubro is rising as it receives an order worth up to Rs 5,000 crore from the National High-Speed Rail Corp. The project will entail constructing 116 Km of High-Speed Ballastless tracks for the Mumbai-Ahmedabad high-speed rail project.

  • Rain Industries is rising as its Q4FY22 net profit rises 34.4% YoY to Rs 277.4 crore. Total Revenue increases by 46.4% to Rs 3,050 crore mainly due to a combination of higher volumes and an increase in price realizations. Revenue from cement businesses rises 15.3% YoY in Q4FY22 to Rs 320 crore.

  • ABB India’s Q4FY22 net profit rises 164% YoY to Rs 373.1 crore and revenue rises 21.2% YoY to Rs 2,005.6 crore on higher volumes, rise in orders and growth in the service business. Orders grow 25% YoY to Rs 2,291 crore and operating margin rises by 142 bps YoY to 9.5%.

  • CarTrade Tech is falling as it posts a loss of Rs 25.7 crore in Q4FY22 against a profit of Rs 12 crore in the same quarter previous year. Revenues increase by 15.2% YoY in Q4FY22 to Rs 105.9 crore but the company posts losses as employee benefit expenses jump 2.2 times YoY to Rs 85 crore.

  • Adani Total Gas's Q4FY22 profit falls 43.6% YoY to Rs 81.1 crore due to the rise in gas price and local constraints on the supply of regasified liquefied natural gas. Revenue rises 69.3% YoY to Rs 1,022.2 crore during the quarter. In FY22, the company's profit rises 7% YoY to Rs 505 crore.

  • Sunil Singhania's Abakkus Growth Fund buys stake in J Kumar Infraprojects worth Rs 45.13 crore in a bulk deal on Wednesday.

  • Havells India’s Q4FY22 net profit rises 16% YoY to Rs 352.5 crore and revenue rises 32.4% YoY to Rs 4,470.4 crore. The maximum revenue growth came in from the cables segment and Lloyd at 45% YoY and 62% YoY, respectively. Operating margin falls by 347 bps to 11.7% on high input costs.

  • Tata Consumer Products’ Q4FY22 net profit rises 4X YoY to Rs 217.5 crore and revenue rises 4.6% YoY to Rs 3,222.8 crore led by robust demand in the Indian market. The India business segment revenue rises 6% YoY to Rs 1,954 crore and EBITDA margin rises by 400 bps YoY to 14.4%.

  • Deepak Nitrite’s Q4FY22 net profit falls 7.8% YoY to Rs 267.2 crore however, revenue increases 27.9% to Rs 1,872.3 crore. Phenolics segment contributes maximum to the revenue with a growth of 20% YoY to Rs 1,122.1 crore. Cost of materials for the company surges 48.8% YoY to Rs 1,186.5 crore with total expenses rising 40.2% to Rs 1,513.7 crore.

Riding High:

Largecap and midcap gainers today include ABB India Ltd. (2,221.10, 10.26%), Ruchi Soya Industries Ltd. (1,095.60, 9.07%) and Adani Green Energy Ltd. (2,845.90, 6.53%).

Downers:

Largecap and midcap losers today include Godrej Properties Ltd. (1,460.25, -5.60%), Deepak Nitrite Ltd. (2,160.55, -5.57%) and IndusInd Bank Ltd. (936.80, -4.24%).

Movers and Shakers

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

Top high volume gainers on BSE included Hikal Ltd. (421.65, 12.26%), ABB India Ltd. (2,221.10, 10.26%) and Esab India Ltd. (3,678.70, 10.19%).

Top high volume losers on BSE were Intellect Design Arena Ltd. (712.25, -6.72%), Sonata Software Ltd. (676.20, -5.16%) and Aavas Financiers Ltd. (2,201.90, -3.75%).

SIS Ltd. (499.90, -0.06%) was trading at 6.4 times of weekly average. Westlife Development Ltd. (451.95, -1.91%) and Firstsource Solutions Ltd. (114.80, -2.42%) were trading with volumes 5.6 and 5.3 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

2 stocks hit their 52-week highs, while 10 stocks hit their 52-week lows.

Stocks touching their year highs included - Power Grid Corporation of India Ltd. (233.75, -1.62%) and Esab India Ltd. (3,678.70, 10.19%).

Stocks making new 52 weeks lows included - 3M India Ltd. (18,545.90, -3.16%) and Firstsource Solutions Ltd. (114.80, -2.42%).

16 stocks climbed above their 200 day SMA including ABB India Ltd. (2,221.10, 10.26%) and Grindwell Norton Ltd. (1,699.90, 4.94%). 34 stocks slipped below their 200 SMA including Laxmi Organic Industries Ltd. (395.85, -6.76%) and Intellect Design Arena Ltd. (712.25, -6.72%).