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The Baseline
26 Apr 2022
Which stocks got the attention of Jhunjhunwala, Singhania, Kacholia in Q4?
By Suhas Reddy

Superstarinvestors with large portfolios bought stakes in some interesting companies in Q4FY22. We take a look at the stocks which Superstar investors bought or added to their portfolios this quarter.

The tumultuous first few months of 2022 meant that most Superstar investors other than Rakesh Jhunjhunwala, Dolly Khanna, and Ashish Kacholiasaw the value of their public portfolios shrink. By the end of FY22, Jhunjhunwala’s portfolio value had risen by more than Rs 9,000 crore while Khanna’s value increased as she went on a buying spree.

No new stocks in Rakesh Jhunjhunwala’s portfolio 

Rakesh Jhunjhunwala’sconsolidated net worth at the end of Q4FY22 was Rs. 33,753.9 crore. The ace investor added a 0.4% stake in Canara Bankto take his stake to 2%. Canara Bank’s shares gained 74% in the past year as of April 26, 2022. The ace investor raised his stake in Jubilant Pharmovaby 0.5% to 6.8%, and in Indiabulls Housing Financeby 0.2% to 1.3% in Q4FY22. Indiabulls Housing Finance and Jubilant Pharmova’s shares are down 10.3% and 40.3%, respectively, over the past year. It appears the ‘Big Bull’ is optimistic about the two companies moving forward despite the stocks correcting this year.

Sunil Singhania’s Abakkus Fund picks up minor stakes in small-cap stocks

Sunil Singhania’s Abakkus Fund’s net worth in Q4FY22 was Rs 2,257.6  crore. Abakkus Fund bought an additional 1.1% stake in Rupa & Companyin Q4FY22. Rupa & Company is a knitwear brand that produces casual wear, sleepwear, and thermal wear. His fund also bought an additional 0.4% stake in the precision engineering company Dynamatic Technologies. 

In Q4FY22, Singhania’s Abakkus Fund also added minor stakes in small-cap companies, including a 0.1% increase to take his stake in Rajshree Polypackto 7.8%, and a 0.1% stake to take his stake in The Anup Engineeringto 5.7%.  He also bought a 0.1% stake in IIFL Securitiesto take his stake in the company to 3.2%.

Ashish Kacholia adds four new companies to his portfolio

Ashish Kacholia’s net worth in Q4FY22 was Rs 1,948.8 crore. Kacholia bought a 2.8% stake in IT services company Creative Newtechduring the quarter. He also picked up a 1.8% stake in Stove Kraft, a household appliances manufacturer, and a 1.8% stake in Fineotex Chemicaland bought a 1.4% stake in Gravita India, which makes lead metal and lead products.

The marquee investor also added a 0.7% stake in the polymer processing company Xpro Indiaincreasing his holding to 3.6%. He bought an additional 0.2% stake in Yasho Industries. There were four other stocks where he increased his stake by a small amount like Ami Organics, United Drilling Tools,Faze Three, and La Opala RG. 

Dolly Khanna buys stakes in fertilizer, metals, and textile companies in Q4FY22

Dolly Khannawent shopping in Q4FY22. She scooped up stakes in two metal and mining companies–Pondy Oxides & Chemicals(a 3.6% stake) and Sandur Manganese & Iron Ores(a 1.5% stake). This was probably in anticipation of a surge in commodity prices due to the conflict in Europe. The stocks gave a 3.8X and 3.5X return, respectively, in the past year. 

Khanna also bought stakes in two agrochemical and fertilizer companies–Sharda Cropchem(a 1.4% stake) and Khaitan Chemicals and Fertilizers(a 1% stake) Both these companies gave a 2.3X and 6X return respectively over the past year. She also bought a 1.4% stake in Goa Carbonand a 1.1% stake in Nahar Spinning Mills.

Dolly Khanna also raised her stakes in multiple companies in Q4FY22, including three fertilizer producers – Rama Phosphatesby 0.3% to 2.6%, Mangalore Chemicals & Fertilizersby 0.2% to 1.7%, and Aries Agroby 0.1% to 1.3%. 

She also raised her stake in two textile companies, RSWMby 0.1% to 1.3% and Nitin Spinnersby 0.1% to 1.8%. She appears bullish on the fertilizer and textiles sectors. She also added stakes in a host of other companies, which include Prakash Pipes, Butterfly Gandhimathi Appliances, Ajanta Soya, Simran Farms, Polyplex Corporation, New Delhi Television, and Control Print.

Porinju V Veliyath raises stake in Kaya and Taneja Aerospace & Aviation

Porinju V Veliyath-led Equity Intelligence India added a 0.2% stake in Kayato take his stake to 1.5% and added a 0.1% stake in Taneja Aerospace & Aviationto take his stake to 1.2%. Kaya is engaged in skincare, haircare, and body care treatment, and the stock gained 38.3% over the past year. Taneja Aerospace & Aviation is engaged in the manufacture and sale of various parts and components to the aviation industry. This stock gave an over 5X return in the past year.

Radhakishan Damani adds a marginal stake in VST Industries

Radhakishan Damani’s net worth in Q4FY22 was Rs 1,73,822  crore. This also includes his stake as a promoter in Avenue Supermarts. The ace investor bought a minor 0.1% stake in VST Industriesbringing his total stake in the company to 32.3%. His total stake in the company is divided between him and his companies Derive Trading And Resorts, and Bright Star Investments. 

Vijay Kishanlal Kedia loads up on Elecon Engineering

In Q4FY22, Vijay Kishanlal Kediaadded a minor stake in Elecon Engineering Companyand Vaibhav Globaltaking his holding up to 1.2% and 1.9%, respectively. The stocks rose 32.9% and 25.9%, respectively since the end of Q4FY22.

 
Trendlyne Marketwatch
Trendlyne Marketwatch
25 Apr 2022
Market closes lower, RailTel Corporation of India bags order worth Rs 122.08 crore

Trendlyne Analysis

Nifty 50 closed in the red with the Indian volatility index, India VIX rising by over 15%. All major Asian indices closed lower, following the global trend, on fears of high inflation levels and prospect of aggressive monetary policy by the US Fed. US indices closed sharply lower on Friday after the US Fed Chairman, Jerome Powell said on Thursday that a 0.5 percentage point hike is on the table for the US Fed’s next meeting to be held in May. The Euro trades lower after opening in the green following French President Emmanuel Macron's win against Marine Le Pen, which was largely expected by markets and political analysts. Shanghai SE Composite Index closed over 5% lower as the Covid-19 outbreak spread to Beijing with some areas in the capital under lockdown.

Nifty Smallcap 100 and Nifty Midcap 100 closed in the red, following the benchmark index. Nifty Bank, which opened in the red, closed marginally higher than Friday’s level. Nifty IT closed in the red, tracking the tech-heavy NASDAQ 100, which fell 2.6% on Friday.

NIfty 50closed at 16,953.95 (-218, -1.3%), BSE Sensexclosed at 56,579.89 (-617.3, -1.1%) while the broader Nifty 500closed at 14,673.00 (-221.9, -1.5%)

Market breadth is moving down. Of the 1,924 stocks traded today, 355 were on the uptrend, and 1,540 went down.

  • Supreme Industries, EPL, Solar Industries India, and Hindustan Unilever are trading withhigher volumes as compared to Friday.

  • Realty stocks like DLF, Macrotech Developers, Godrej Properties, Oberoi Realty and Prestige Estates projects, among others, are falling in trade. The broader sectoral index Nifty Realty is also trading in the red.

  • Century Textiles rises as it reports a net profit of Rs 84.4 crore in Q4FY22 against a loss of Rs 10 crore, a year ago. Total sales jump 44.8% YoY to Rs 1,188 crore. The company recommends a dividend of Rs 4 per share for the year FY22.

  • Dalmia Bharat and Birlasoft touch an all-time high of Rs 1,180 and Rs 314.5, respectively. Dalmia Bharat is rising for three consecutive sessions while Birlasoft rises for two consecutive sessions.

  • India Ratings and Research expects growth momemtum for residential real estate sector to be robust in FY23 and sees a 12% YoY rise in housing sales for FY23.

  • RailTel Corporation of India receives order worth Rs 122.08 crore from Electronics & Information Technology Department, Government of Odisha for provisioning of secondary bandwidth for Odisha State Wide Network project. RailTel’s project is to be completed over a period of five years.

  • Edelweiss maintains a ‘Buy’ rating on ICICI Bank with a target price of Rs 945, indicating an upside of 26%. The brokerage remains bullish on the company’s overall improvement in asset quality, strong digital push, focus on risk management and good provision coverage. The brokerage expects revenue to grow at a 16.8% CAGR over FY22-24.

  • Godrej Agrovet is trading with more than 15 times its weekly average trading volume. Mahindra CIE Automotive, Rossari Biotech, Quess Corp, and Hikalare trading at more than four times their weekly average trading volumes.

  • Godrej Agrovet rises after Indonesia announces ban on palm oil exports. Godrej Agrovet is a major local producer of palm oil and specializes in palm oil plantations, crop protection, among others.

  • Metal stocks like Tata Steel, Hindalco Industries, Vedanta, Hindustan Zinc, NMDC and Coal India, among others, are falling in trade. The broader sectoral index BSE Metal is also trading in red amid concerns of poor metal demand in China.

  • Stocks like Maruti Suzuki India, Motilal Oswal Financial Services, Ambuja Cements, and Biocon, among others, are rising over the past week, ahead of their financial results.

  • Glenmark Pharma launches Teneligliptin + Pioglitazone fixed dose combination (FDC) drug for Type 2 Diabetes in India. This FDC drug, under the brand name Zita Plus Pio, helps improve glycemic control among adult patients with insulin resistance. Glenmark Pharma is the first company to launch this FDC in India.

  • Cyient to acquire a 100% stake in Citec, an international plant and product engineering services company for Euro 94 million or Rs 775.7 crore in an all-cash deal. The company expects the acquisition to strengthen its presence in the European markets and add new engineering capabilities to its portfolio.

  • Tejas Networks falls after it reports a net loss of Rs 49.6 crore in Q4FY22 against a profit of Rs 33.5 crore in Q4FY21. Its revenues fell 37.24% YoY to Rs 141 crore as semiconductor shortages hit telecom gear production.

  • Tata Metaliks is falling as its Q4FY22 net profit falls 30% YoY to Rs 52.36 crore despite a 22.5% increase in revenues to Rs 807.9 crore. Net profit falls as cost of materials rises 44% YoY to Rs 542.7 crore in Q4FY22 due to increase in prices of major raw materials like coal, coke, and iron ore.

  • Welspun Corp receives an export order from South East Asia of 55,000 million tonnes for the manufacture and supply of pipes for an important offshore project. The order will be executed from the facilities existing in India.

  • Hindustan Zinc’s Q4FY22 net profit rises 18% YoY to Rs 2,928 crore and revenue rises 25% YoY to Rs 9,074 crore on the back of higher volumes and a rise in metal prices. EBITDA rises 29% YoY to Rs 5,007 crore. In FY22, net profit rises 20.6% YoY to Rs 9,629 crore and revenue rises 25.4% YoY to Rs 30,656 crore.

  • FMCG stocks like Hindustan Unilever, Nestle India, Britannia Industries, ITC, and Godrej Consumer Products, among others are falling in trade after Indonesia announces a ban on palm oil exports. The broader sectoral index Nifty FMCG is also trading in the red.

  • ICICI Bank’s Q4FY22 net profit jumps 59% YoY to Rs 7,019 crore with net interest income rising 21% YoY to Rs 12,605 crore. Provisions fall 63% YoY to Rs 1,069 crore. The bank’s asset quality improves as NPAs fall by 136 bps YoY to 3.6% and 38 bps to 0.76%, for gross and net NPAs respectively. Fee income grew 14% YoY to Rs 4,366 crore with retail, rural, business, and SME banking contributing 77% to total fee growth.

  • Sun Pharmaceuticals and Aurobindo Pharma are recalling different products in the US market for various reasons, as per the enforcement report by the US Food and Drug Administration (USFDA), according to reports. Aurobindo Pharma is recalling Cyanocobalamin Injection, which is used to treat and prevent vitamin B12 deficiency. Sun Pharma is recalling Cequa, a drug used to increase production of natural tears in the eyes.

  • Reliance Industries cancels its Rs 24,713-crore deal with Future Group to take over its retail assets. Future Group's secured creditors voted against the scheme of transfer of its retail and logistics business to the Reliance Industries' subsidiaries, despite unsecured creditors and shareholders approving the deal.

Riding High:

Largecap and midcap gainers today include Varun Beverages Ltd. (1,094.80, 5.28%), Adani Power Ltd. (272.05, 5.00%) and Aditya Birla Capital Ltd. (115.75, 2.93%).

Downers:

Largecap and midcap losers today include Tata Communications Ltd. (1,119.50, -9.29%), Coal India Ltd. (188.45, -6.78%) and Hindustan Zinc Ltd. (322.85, -6.52%).

Volume Rockets

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

Top high volume gainers on BSE included Mahindra CIE Automotive Ltd. (198.90, 6.34%), IOL Chemicals and Pharmaceuticals Ltd. (481.90, 5.62%) and Tube Investments of India Ltd. (1,822.30, 4.13%).

Top high volume losers on BSE were Tata Communications Ltd. (1,119.50, -9.29%), Hikal Ltd. (393.70, -5.73%) and Nippon Life India Asset Management Ltd. (317.35, -3.00%).

Godrej Agrovet Ltd. (505.70, 2.18%) was trading at 22.9 times of weekly average. Century Textiles & Industries Ltd. (886.40, 0.85%) and Quess Corp Ltd. (672.60, 1.61%) were trading with volumes 8.0 and 7.6 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

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

Stocks touching their year highs included - Adani Power Ltd. (272.05, 5.00%), Swan Energy Ltd. (320.40, 4.35%) and Vinati Organics Ltd. (2,158.60, -2.03%).

Stocks making new 52 weeks lows included - Pfizer Ltd. (4,315.25, -0.76%) and HDFC Asset Management Company Ltd. (2,005.00, -2.03%).

9 stocks climbed above their 200 day SMA including Aditya Birla Capital Ltd. (115.75, 2.93%) and KRBL Ltd. (253.10, 1.77%). 25 stocks slipped below their 200 SMA including Hindustan Zinc Ltd. (322.85, -6.52%) and Just Dial Ltd. (851.30, -4.54%).

 
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The Baseline created a screener Analyst Disagreement - target …
25 Apr 2022
 
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The Baseline
25 Apr 2022
Five analyst stock picks this week
  1. Mastek: HDFC Securities maintains a ‘Buy’ rating on this IT services company’s stock but reduces its target price to Rs 3,530 from Rs 3,750, indicating an upside of 22.1%. The brokerage cut its target price as it expects near-term headwinds due to ongoing supply-side concerns. However, it remains positive on the company due to a 25.4% YoY growth in its order book in Q4FY22, boosted by a $65 million (Rs 498.2 crore) deal from the UK Government. The company’s Q4FY22 revenue grew 18.3% YoY to Rs 588.6 crore led by growth in the UK geography and broad-based growth in all its business verticals. 

Analysts Amit Chandra, Apurva Prasad and Vinesh Vala said, “The management is aiming to reach $1 billion revenue in the next five years, implying an organic revenue CAGR of 20%”. They expect the company’s revenue growth to be led by demand for cloud migration and digital transformation, and continued traction in the UK market.  The analysts believe the company is well-placed to capitalize on the new opportunities in the US market, focusing on the healthcare and life sciences vertical. The US market will be a key area of focus for the company as it plans to make investments to strengthen its partner ecosystem, and the analysts expect EPS to rise at a 21% CAGR over FY22-24.

  1. PB Fintech: ICICI Securities initiates a ‘Buy’ call on this fintech company with a target price of Rs 940, indicating an upside of 33.3%. “PB Fintech is among the leading insurance and lending intermediaries in India (and) is well placed to benefit from the rising insurance penetration in India, especially through digital distribution,” say analysts Ansuman Deb and Ravin Kurwa.

The analysts believe that the company’s revenue growth, operating leverage, strong balance sheet, and established brand are its key business moats and add that this would help the company generate strong free cashflows

The analysts expect the company’s consolidated adjusted EBITDA to be at Rs 1,020 crore in FY26 and expect the company’s platform Paisabazaar to clock a 30% contribution CAGR between FY21-31.

  1. MindTree: Axis Direct maintains a ‘Buy’ rating on this IT services company with a target price of Rs 4,830, indicating an upside of 29.2%. Analyst Omkar Tanksale believes the company has a resilient business model and a proven track record of strong execution capabilities. The company’s Q4FY22 profit rose 49% YoY to Rs 473 crore, led by growth in verticals such as BFSI (Banking, Financial services and Insurance sector), Hi-tech Media, and Life Sciences. The brokerage expects the company’s revenue growth trajectory to continue in the forthcoming quarters due to its strong deal pipeline. The analyst believes the company’s strategy of consistent investment, focus on garnering multi-year engagements, and scaling up of top accounts will aid sales traction moving forward. Tanksale says, “With depreciation in INR, lower travel costs and lower on-site expenses, EBITDA margins are likely to expand in the near term”. The analyst believes that the large headwind of wages hike is behind the company and healthy revenue growth will cushion margin headwinds to a great extent going forward.
  2. Gland Pharma: Motilal Oswal maintains a ‘Buy’ rating on this pharmaceutical company’s stock with a target price of Rs 4,040. This indicates an upside of 22.7%. According to analysts Tushar Manudhane and Gaurang Sakare, “Gland has 11 injectable products in the USFDA shortage list, which have combined sales of $400 million over the past 12-month.” They add, “Injectable shortages provide a steady opportunity”.

They are positive on the company due to its niche product pipeline in injectables, volume gains in existing products, wider market operations for its portfolio, and a strong cash cushion for inorganic growth. The analysts expect a 27% earnings CAGR over FY22-24, led by 16% sales CAGR in its core markets, 23% sales CAGR in India, and 43% sales CAGR in the rest of the world over FY22-24; supported by a 200bp margin expansion over FY22-24, and estimates Rs 300 crore in biologics sales in FY24. 

  1. Larsen & Toubro Infotech: BOB Capital Markets maintains a ‘Buy’ rating on this IT services company with a target price of Rs 8,140 indicating an upside of 66.3%. The company’s revenue grew 3.6% QoQ to Rs 4,301.6 crore in Q4FY22 against the brokerage's estimates of 5% revenue growth. However, net new deals bagged during the quarter grew 22% YoY to $80 million. According to the company, the large-deal pipeline stands at $2 billion.  Analyst Seema Nayak says that the company “is seeing broad-based demand across verticals and service lines”. She adds that the company “does not anticipate any slowdown in the demand environment but acknowledged uncertainty in terms of rising input costs and the volatile geopolitical climate”. The management expects to deliver a net profit margin in the range of 14-15% in FY23. 

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

 
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The Baseline
25 Apr 2022
Forecaster: Pricing pressures will hit pharma in Q4, stocks gaining ahead of results

CEOs are optimists - its how they sleep at night. And in their Q3 earnings calls, most management were upbeat about the outlook for Q4.

But now with the results season, we get to compare promises with reality. Lower-than-expected earnings from heavyweights like Infosys and HDFC Bank have already sent jitters across the market.

This week, we look at analyst predictions for the pharma sector: expected Q4FY22 earnings, and how the rise in input costs, the Russia Ukraine war and other headwinds are likely to affect company bottomlines. 

In this week’s Analyticks:

  • Pricing pressure in the US market will hit pharma company margins in Q4
  • Drug makers with high market share in domestic formulations set for strong growth
  • Promising players: Screener for stocks that saw revenue and profits jump in the last quarter, and are rising ahead of Q4 results

Let’s get into it.

Cost pressure, price erosion in US market will compress pharma margins in Q4

Analysts are expecting muted growth for pharma companies in Q4FY22, predicting an average Q4 revenue growth of 7%, and profit growth of 3% YoY.

This tepid profit growth estimates are due to an increase in input costs and intense competition in the US businesses, which are likely to keep margins under pressure. 

In addition, the Russia-Ukraine war will impact the topline of companies such as Dr Reddy’s Labs and Indoco Remedies, which get considerable revenues from Russia and Eastern Europe.

Lower revenue growth in the saturated US formulations market will drag overall revenues of pharma companies in Q4FY22. 

With the US market losing its sparkle, pharma companies are turning to India to improve their growth opportunities. Indian Pharma Market (IPM) grew 3.9% YoY in Q4FY22. Though product volumes fell 3.3% YoY, it was offset by an average price increase of 5.3% and new domestic product launches. 

Price hikes for scheduled drugs makes Indian market more lucrative

India's drug pricing agency, National Pharmaceutical Pricing Authority (NPPA) allowed a price hike of up to 10.7% for price-controlled drugs in April 2022. As a result over 800 drugs, including painkillers, antibiotics, and anti-infectives, which are under the national list of essential medicines (NLEM) will see a price rise. Companies with high exposure to NLEM products like Cipla (30% of its India formulation sales) and Dr Reddy’s Labs (31% of its India formulations sales) will benefit from this price hike in FY23.

On the US formulation business front, analysts expect a muted quarter owing to continued price erosion and limited successful new launches (barring Lanreotide for Cipla and Vasostrictfor Dr. Reddy’s). The US Food and Drug Administration’s (USFDA) drug approvals play a major role in the profitability of pharma companies as margins are usually the highest immediately after approvals and product launches. This is applicable especially for new drugs. Cipla managed to receive five USFDA approvals in Q4FY22 while Sun Pharma and Dr Reddy’s received two approvals each.   

Drug makers focusing on India will perform better in market share

Companies like Dr Reddy’s Labs and Aurobindo Pharma, which get significant revenues from the US market, are expected to post muted growth in Q4FY22. Dr Reddy’s revenue growth will be hampered by the ongoing crisis in Ukraine as it gets over 10% of its revenues from the Commonwealth of Independent States (CIS). 

Trendlyne’s Forecaster for Aurobindo Pharma expects a revenue fall of 3% YoY to Rs 5,888.9 crore as a result of its heavy reliance on US formulations business, which is intensely competitive. In order to foray into the higher-margin domestic formulation business, Aurobindo Pharma acquired Veritaz Healthcare for Rs 171 crore on March 28, 2022.

Cipla stands out in the pharma pack in US business growth. Brokerages like ICICI Securities and Axis Securities see Cipla’s US business revenue rising 16.5% YoY in Q4FY22 to Rs 1,167 crore in Q4 on the back of strong growth in its respiratory franchise, led by Albuterol inhaler and Arformoterol Tartrate solution. 

In the domestic market, Cipla is the market leader in the respiratory segment, which grew 27% YoY overall in Q4FY22. Cipla's revenue is expected to rise 10% to Rs 5,126.5 crore and profit to rise 40% YoY to Rs 577.6 crore in Q4. Analysts see high profit growth mainly due to its product mix shifting towards more remunerative businesses. 

Another company that has considerable market share in the Indian formulation segment is Sun Pharma – the largest Indian pharma company. This drug maker is expected to continue its growth momentum in Q4FY22 both in terms of revenue and profit. Analysts expect Q4 profit growth of 90% YoY to Rs 1,711.7 crore on the back of 12% growth in domestic formulations to Rs 2,991 crore.

Revenues from India and the US together form a major part of total revenues for branded and generic formulations companies. Pharma companies are now trying to diversify their revenues by focusing more on emerging markets. However, different regulatory systems in countries pose a hurdle in launching new products at a fast rate, and its going to take time to win market share in these regions.

Screener: Stocks rising ahead of results, with 15%+ YoY growth in previous quarter revenue and net profit growth

Ahead of results, some stocks are showing strong buying interest from investors. This screener shows ten stocks in the Nifty 500 that rose at least 10% in the past month, ahead of earnings. These companies also posted 15%+ topline and bottom-line growth in the previous quarter. 

Among the ten stocks, two of them are from the metals and mining sector - Vedanta and Hindustan Zinc. The metals and mining sector is on revival mode since the start of FY22, with export opportunities rising for Indian companies. Metal companies are seeing a steady rise in EBITDA earnings over the year, thanks to rising prices in steel, aluminum, and zinc. Indian steelmakers also look set to gain from increasing metal prices, as supply chain disruptions continue.

You can find some popular screeners here.

 
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The Baseline
22 Apr 2022
Five Interesting Stocks Today

  1. ACC: This Holcim Group company’s stock zoomed 7.4% post-results  despite reporting a close to 30% YoY fall in its Q1 2022 net profit at Rs 396.3 crore. Revenues grew at a tepid 3% YoY, driven mainly by higher sales realisations. However, fuel and power costs rose by over 33% YoY, which ultimately hit its bottomline. The company managed to reduce its per tonne freight and forwarding expenses by 1% YoY in Q4 due to cost optimisation. Analysts at Axis Securities and Motilal Oswal are particularly positive on this cement company as they believe that its upcoming capex project (3.2 million tonnes) in Central India will boost the sales volume growth in FY23.

There was also a report of a possible exit by its parent company Holcim from India. Holcim Group has already exited the cement sector in Indonesia, Malaysia, Singapore and Brazil to reduce its carbon footprint. And if reports are to be believed, Holcim is in early-stage talks with JSW Group and Adani Group for a possible deal. Both ACC and Ambuja Cement could be re-rated if this deal goes through, especially since they are among the top five cement brands in India. ACC (alongwith Ambuja) could command higher valuations at the time of sale. Additionally, Holcim was very slow in expanding cement capacities in India, which led to a loss of market share for both these companies in the last 10 years. A change of guard could very well revive the fortunes of ACC and Ambuja Cement.

  1. AU Small Finance Bank: This bank stock touched an all-time high of Rs 1,465.95 this week after it announced that it is considering a bonus issue. The stock outperformedBank Nifty by 22% this month. The bank started to see a revival in growth from Q3FY22 as the economy opened up, as a majority of its lending business is linked to vehicles, business and housing. With demand recovering as the economy normalised, the bank has reorganised itself into 10 SBUs (strategic business units) to improve operational efficiency and scalability to capitalise on the recovery. The bank has a large retail dominated, secured and diversified loan book that is risk-free and ideally placed to take advantage of the economic upturn.

Its Q4FY22 total deposits rose 46% YoY to Rs 52,585 crore, and the cost of funds fell 80 bps YoY to 5.7%, due to consistent improvement in deposits. The loan AUM (assets under management) rose 27% YoY to Rs 47,843 crore as credit demand continued to rise due to improving sentiment on the ground. The bank saw sustained improvement in its asset quality as customers' cash flows improved during Q4FY22.

The bank is working on scaling up its digital banking services to expand into newer markets. It is expected to post robust numbers in Q4FY22, as brokerages like Motilal Oswal expect the net profit of the company to rise 87.6% YoY to Rs 316.9 crore, and Kotak Equities expects profit to grow by 200% YoY.

  1. Angel One: This stock rose 17.5% on Thursday after it announced its Q4FY22 results. Angel One’s profit jumped 2.1X YoY in Q4FY22 to Rs 204.7 crore and revenues increased by 63.6% to Rs 685.3 crore. This sharp rise in net profit is due to the operating profit margin rising 6.5% YoY to 42.46%. The company is leveraging its scalable digital business model to keep costs lower. Though the number of clients jumped 2.4X YoY to 92 lakh in Q4FY22, the company reported its lowest average revenue per client (ARPC). ARPC fell 23.7% YoY to Rs 513. ARPC is on a downtrend from Q4FY21, representing intense competition in the brokerage businesses.

The company is benefitting from a sharp rise in demat accounts in India. Demat accounts grew 63.6% YoY in FY22 to 9 crore, with penetration in India increasing by 230 bps to 6.4%.  However, this high growth may not be sustainable as a major factor that affects demat account growth and penetration is the nature of the capital markets. In FY21 and FY22, Nifty 50 rose 71% and 19% respectively, helping the growth of demat accounts. This may change in FY23.

ICICI Securities maintained its ‘Buy’ rating on Angel One and increased the target price by 17.4% to Rs 2,230. The brokerage has a positive outlook on the company as its number of orders grew 83% YoY to 14.7 lakh in Q4FY22. ICICI Sec expects Angel One’s profit to grow at a 15% CAGR over FY22-24. 

  1. Larsen & Toubro Infotech: This IT services company’s stock fell for two consecutive sessions since it declared its Q4FY22 earnings. Although the company’s revenues increased 4% QoQ to Rs 4,301 crore, this was below expectations of brokerages like Motilal Oswal, BOB Capital Markets (BOB Caps), ICICI Securities, among others. Revenue grew across all segments of the company with Consumer Packed Goods, Pharma, Retail segments growing the most at 6.2% QoQ to Rs 717.5 crore. However, BOB Caps believes that muted growth in banking and financial services (2.8% QoQ), and manufacturing (2.5% QoQ) led to the company missing its revenue estimates.

The Q4 results brought out mixed reactions from analysts. Motilal Oswal and ICICI Direct maintained their ‘Neutral’ stance on the stock as rising on-site attrition and salary hikes in Q1FY23 may affect EBIT margin by almost 290 bps. EBIT margins in Q4FY22 fell 64 bps QoQ to 17.3% because of lower working days in the quarter and a better revenue mix.

However, BOB Caps maintains its ‘Buy’ rating as it expects robust demand and large-deal pipeline to drive profit margin by 14-15% in FY23. According to its reports, the company bagged three big deals with Fortune 500 clients worth US$ 2 billion.

  1. VRL Logistics: This transport company’s stock touched a new 52-week high on Thursday, gaining more than 8% after it announced an MoU (memorandum of understanding) with Ratna Cements. The company is planning to sell its wind power undertaking on a slump sale basis for Rs 48 crore to focus on the goods transport business. This comes after the company announced a capex plan of Rs 560 crore to buy 1,600 trucks to increase its carrying capacity to 25,000 tonnes.

The company’s balance sheet and cash flows are strong enough to manage its capex funding along with taking on an additional debt of around Rs 300 crore. While VRL’s current fleet capacity stands at 69,000 tonnes, once the capex plans are executed the net addition in capacity will be close to 20%. This will help the company increase its volumes by 15-20% in FY23.

Another reason for capex infusion is the new government vehicle scraping norms, which require the scrapping of the older fleet. With economic activities picking up VRL will need enough fleet to meet rising demand.

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
22 Apr 2022
Market closes lower, Zen Technologies rises on winning an order worth Rs 55 crore

Trendlyne Analysis

Nifty 50 closed lower with the Indian volatility index rising above 18% amid weak global cues. Asian indices closed in the red as US Federal Reserve Chairman Jerome Powell toughened his stance on inflation on Thursday. Powell said that 0.5% interest rate increase will be ‘on the table’ when the Fed meets in May. US indices, which were trading in the green on Thursday, closed lower on the fear of an aggressive rate-hike outlook. Oil is headed for a weekly loss on concern over falling energy demand in China due to Covid-19 lockdowns and weak global growth prospects. European indices trade in the red on the back of a higher likelihood of aggressive monetary policy tightening and the impact of the war in Ukraine.

Nifty Smallcap 100 and Nifty Midcap 100 closed in the red, following the benchmark index. Nifty Bank and Nifty Metal closed lower than Thursday’s levels. Nifty IT closed in the red, tracking the tech-heavy NASDAQ 100 futures.

Nifty 50 closed at 17,171.95 (-220.7, -1.3%), BSE Sensex closed at 57,197.15 (-714.5, -1.2%) while the broader Nifty 500 closed at 14,894.85 (-159.1, -1.1%)

Market breadth is in the red. Of the 1,899 stocks traded today, 669 were in the positive territory and 1,181 were negative.

  • Tata Teleservices (Maharashtra), Bajaj Electricals, Symphony, and Carborundum Universal are trading with higher volumes as compared to Thursday.

  • ICICI Lombard General Insurance’s Q4FY22 profit falls 10% YoY to Rs 313 crore even as revenue rises 33% YoY to Rs 4,636 crore, as other expenses rise 67% YoY to Rs 775 crore. In FY22, profit falls 13.7% YoY to Rs 1,271 crore and revenue rises 32.6% YoY to Rs 16,129.8 crore.

  • PSU bank stocks like State Bank of India, Indian Bank, Bank of Baroda, and Canara Bank among others are falling in trade. The broader sectoral index Nifty PSU Bank is also trading in the red.

  • Crisil’s Q4FY22 net profit increases 45.6% YoY to Rs 121.6 crore with revenue rising 20.1% YoY to Rs 594.94 crore. Research services segment’s revenue grows 26.3% YoY to Rs 394.24 crore. However, total expenses for the company rose 11.9% YoY to Rs 445.74 crore because of an increase in employee benefit costs by 18.7%. The company declared an interim dividend of Rs 7 per share with record date as May 19, 2022.

  • Reliance Industries, State Bank of India, Bajaj Finance, and Asian Paints, among others, are outperforming the Nifty 50 index over the past month.

  • Pharma stocks like Sun Pharmaceutical Industries, Divi’s Laboratories, Cipla, Dr. Reddy’s Laboratories, Gland Pharma, and Torrent Pharmaceuticals, among others are falling in trade. The broader sectoral index Nifty Pharma is also trading in red.

  • L&T Technology services Q4FY22 profit rises 5.3% QoQ to Rs 262 crore and revenue rises 4.26% QoQ to Rs 1,798 crore on the back of broad-based growth across its segments. Operating profit margin marginally falls by 10 bps QoQ to 21.67% as expenses rise 4% QoQ to Rs 1,439.2 crore.

  • Zen Technologies rises on winning an order worth Rs 55 crore for a period of five years. Its total order book (domestic and exports) now stands at Rs 477.04 crore.

  • Borosil Renewables surges, ahead of its board meeting to finalise fundraising options through issuance of equity shares or through preferential issue on a private placement basis. The meeting will be held on Monday.

  • Sterlite Technologies is trading with more than 12 times its weekly average trading volume. Elgi Equipments, Bombay Burmah Trading Corporation, Cyient and EPL are trading at more than five times their weekly average trading volumes.

  • HDFC Securities maintains an 'Add' rating on ICICI Securities but cuts its target price by 19.6% to Rs 740. The brokerage reduces the valuation multiple for ICICI Sec as its broking revenues fell 5% QoQ in Q4FY22 on lower cash delivery volumes. The company continued to lose market share in the derivatives segment owing to higher competition from new-age fintech brokers.

  • Adani Enterprises, Reliance Industries, Angel One, and IIFL Finance, among others, are in overbought zone according to technical indicator relative strength index or RSI

  • Cyient’s Q4FY22 revenue rises 2% QoQ to Rs 1,230.6 crore and profit rises 17% QoQ to Rs 154.2 crore on an increase in orders for digital services. Operating profit margin marginally rises 8 bps QoQ to 17.98%.

  • HDFC Securities maintains a ‘BUY’ rating on Mastek with a target price of Rs 3,530, indicating an upside of 19.8%. The brokerage remains positive about the company as its order book grew 24% YoY to Rs 1,469 crore on the back of a $ 65 million order from the UK government. HDFC Securities expects the company’s revenue to grow at an 18.1% CAGR over FY22-24.

  • Borosil Renewables and Mazagon Dock Shipbuilders touch an all-time high of Rs 774.5 and Rs 342.4 respectively. Both stocks are rising for two consecutive sessions.

  • Rallis India is falling as it announces a loss of Rs 14 crore in Q4FY22 against a profit of Rs 8 crore in Q4FY21. The company reports losses despite a 9% revenue growth in Q4FY22 to Rs 508 crore due to high raw material costs, pricing issues, and unseasonal rains.

  • Vedanta Group looks to divest 20-25% stake each in the three main business units of Sterlite Technologies, according to news reports. It seeks a valuation of $2 billion for each of the business units. According to its recent press release, Sterlite Technologies is mulling a fundraise via the equity route.

  • Tata Communications' Q4FY22 revenue rises 9.5% YoY to Rs 4,526.6 crore and profit rises 22% YoY to Rs 365.1 crore on higher other income. The maximum growth in revenue came in from the data services segment at 6.9% YoY to Rs 3,316 crore. In FY22, revenue falls by 1.1% YoY to Rs 17,056.8 crore and profit rises 18.5% to Rs 1,481.8 crore.

  • TVS Motors invests 100 million pounds in Norton Motorcycles, a UK motorcycle brand that TVS motors acquired in 2020. Part of this investment was used to open its new manufacturing facility in West Midlands to build bikes using traditional hand-crafted techniques with modern-day machinery.

  • Adani Ports & Special Economic Zone (APSEZ) through its subsidiary Adani Harbour Services to acquire a 100% stake in Ocean Sparkle (OSL) for a total consideration of Rs 1,530 crore in an all-cash deal. The company will directly acquire a 75.69% stake in OSL for Rs 1,135.3 crore and indirectly acquire the remaining 24.31% stake by acquiring a 100% stake in Savi Jana Sea Foods for Rs 398.87 crore. The company expects this acquisition to increase its footprint in the marine service market.

  • HCL Technologies’ Q4FY22 net profit rises 4.4% QoQ to Rs 3,593 crore with revenue increasing marginally by 1.2% QoQ to Rs 22,597 crore. The products and platforms segment reports a fall in revenues by 23.2% QoQ to Rs 2,316 crore dragging down total revenue growth. However, EBIT margins fall 110 bps QoQ to 17.9%. The company’s board declares an interim dividend of Rs 18 per share with record date as April 29, 2022.

Riding High:

Largecap and midcap gainers today include Tata Elxsi Ltd. (8,358.00, 5.75%), Adani Power Ltd. (259.10, 4.98%) and United Breweries Ltd. (1,545.60, 4.18%).

Downers:

Largecap and midcap losers today include Polycab India Ltd. (2,520.10, -8.16%), ICICI Lombard General Insurance Company Ltd. (1,318.00, -5.92%) and Hindalco Industries Ltd. (514.15, -4.83%).

Volume Rockets

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

Top high volume gainers on BSE included Sterlite Technologies Ltd. (235.05, 13.83%), Cyient Ltd. (917.20, 10.31%) and Elgi Equipments Ltd. (337.50, 8.84%).

Top high volume losers on BSE were Rallis India Ltd. (253.65, -9.88%), Polycab India Ltd. (2,520.10, -8.16%) and ICICI Lombard General Insurance Company Ltd. (1,318.00, -5.92%).

Bombay Burmah Trading Corporation Ltd. (967.45, 6.75%) was trading at 18.8 times of weekly average. Esab India Ltd. (3,358.35, 1.96%) and EPL Ltd. (169.05, -3.12%) were trading with volumes 8.8 and 6.0 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

12 stocks overperformed with 52-week highs,

Stocks touching their year highs included - Adani Power Ltd. (259.10, 4.98%), Coal India Ltd. (202.15, -2.30%) and EID Parry (India) Ltd. (519.05, 3.03%).

20 stocks climbed above their 200 day SMA including United Breweries Ltd. (1,545.60, 4.18%) and J B Chemicals & Pharmaceuticals Ltd. (1,703.00, 3.42%). 16 stocks slipped below their 200 SMA including Rallis India Ltd. (253.65, -9.88%) and Aegis Logistics Ltd. (228.20, -4.86%).

 
Trendlyne Marketwatch
Trendlyne Marketwatch
21 Apr 2022
Market closes higher, ICICI Direct maintains ‘Buy’ on PCBL

Trendlyne Analysis

Nifty 50 closed in the green with the Indian volatility index, India VIX slipping below 18%. Asian indices closed mixed with Chinese stocks trading lower owing to worries about the Chinese economy growth as the country combats with its recent Covid-19 outbreak. US indices closed mixed on Wednesday amid rising 10-year treasury yields. Dow Jones ended higher on Wednesday while the tech-heavy Nasdaq 100 closed in the red as Netflix plunged 35% after reporting a loss in subscriber count for the first time in a decade. Oil prices edge higher as investors weigh potential supply disruptions against demand prospects. Investors await comments from Fed Chairman, Jerome Powell and European Central Bank President, Christine Lagarde at an International Monetary Fund event later in the day. European stocks trade mixed as investors keep track of developments in Ukraine and the French presidential campaign.

Nifty Smallcap 100 and Nifty Midcap 100 closed higher, following the benchmark index. Nifty Auto and Nifty Bank close higher than Wednesday’s levels. Nifty IT closes in the green, tracking the tech-focused Nasdaq 100 futures.

Nifty 50 closed at 17,392.60 (256.1, 1.5%), BSE Sensex closed at 57,911.68 (874.2, 1.5%) while the broader Nifty 500 closed at 15,053.95 (203.7, 1.4%)

Market breadth is surging up. Of the 1,892 stocks traded today, 1,343 were on the uptick, and 504 were down.

  • Carborundum Universal, KPR Mill, Krishna Institute of Medical Sciences, and Procter & Gamble Hygiene & Healthcare are trading with higher volumes as compared to Wednesday.

  • Shriram Properties Q4FY22 sales bookings rise 15% QoQ to Rs 479 crore and sales volume rises 14% QoQ to 1.17 million square feet on robust demand. In FY22, sales bookings rise 19% YoY to Rs 1,482 crore and sales volume rises 25% to 3.76 million square feet.

  • Delivery volume of stocks like Biocon, Ambuja Cements, Tata Steel, and MphasiS, among others, are rising ahead of their Q4FY22 results to be announced over the next two weeks.

  • VRL Logistics surges after the company announces an MoU with Ratna Cements. VRL Logistics plans to transfer its wind power undertaking along with all assets and liabilities on a slump sale basis for Rs 48 crore. The management wants to dispose off this undertaking to focus on its goods transport business.

  • ICICI Direct maintains a ‘Buy’ rating on PCBL (Phillip Carbon Black) with a target price of Rs 160, indicating an upside of 42%. The brokerage maintains its positive outlook on the company due to its rising export sales, increasing speciality product sales and better realisations per tonne due to high crude oil prices. The brokerage expects EBITDA to rise at a 12.7% CAGR over FY22-24.

  • Ramkrishna Forgings rises as the company bags an export order worth Rs 33 crore from Europe’s leading tier-1 axle manufacturer for a period of five years.

  • PNC Infratech is trading with more than 18 times its weekly average trading volume. TCI Express, Gland Pharma, Saregama India, and Finolex Cables are trading at more than four times their weekly average trading volumes.

  • Nifty 50 rises for second consecutive day led by Reliance Industries, Infosys, HDFC Bank, and ICICI Bank, which constitute over 35% of the total weight of Nifty 50.

  • Fino Payments Bank surges after it receives RBI's approval to offer referral services of term deposits by partnering with Suryoday Small Finance Bank. Basically, the bank's 3.9 million customers will be able to avail fixed deposit and recurring deposit facilities through the partner bank.

  • Nestle India’s Q4FY22 profit falls 1.25% YoY to Rs 594.7 crore but revenue rises 9.9% YoY to 4,002.1 crore as domestic sales rise 10.2% YoY to Rs 3,794.2 crore. High input costs impact margins as the cost of materials consumed rise 22% YoY to Rs 1,845.9 crore.

  • ITC rises as it plans to acquire 10.07% stake in Blupin Tech in an all-cash deal. This is the second acquisition of ITC into the mother and baby care segment. It acquired Mother Sparsh Baby Care in November 2021.

  • According to reports, LIC’s new business premium collection rises 7.9% YoY to Rs 1.98 lakh crore with a market share of 63.2% at the end of March 2022. LIC’s individual single premium collections rise 61% YoY to Rs 4,018 crore in March 2022 while group single premiums rise 48.1% to Rs 30,052.8 crore.

  • Nykaa surges after it announces a tie-up with global haircare leader Aveda (owned by Estée Lauder) to launch premium hair-care salons in India. The first 'Aveda X Nykaa' salon will be launched today in Bangaluru under this partnership. With this tie-up, Nykaa will foray into professional beauty services segment in India.

  • Glenmark Life Sciences Q4FY22 revenue rises 10% YoY to Rs 514.06 crore but profit falls 5.5% YoY to Rs 98.9 crore on high input cost inflation. EBITDA margin falls by 7.7 percentage points YoY to 28.7%. In FY22, revenue rises 12.6% YoY to Rs 2,123.2 crore and profit rises 19.1% YoY to Rs 418.7 crore.

  • Reliance Industries surges to an all-time high. Morgan Stanley raises the target price on the company as it believes hydrogen adoption plans are quickly progressing, with Reliance Industries being in the best position to capitalize on it, according to reports.

  • Angel One is rising as its net profit jumps 2.1 times YoY to Rs 204.7 crore and revenues increase by 63.6% to Rs 685.3 crore. Operating profit margin rises by 6.52 percentage points to 42.46% with its total client base increasing
    by 18.4% QoQ to 92 lakhs.

  • ICICI Securities Q4FY22 profit rises 3.2% YoY to Rs 340.3 crore and revenue rises 21% YoY to Rs 892.3 crore. The maximum revenue growth came in from the broking and distribution segment at 19.7% YoY growth. In FY22, revenue rises 32.9% to Rs 3,438.4 crore and profit rises 29.4% YoY to Rs 1,067.7 crore.

  • Tata Elxsi’s Q4FY22 net profit rises 6% QoQ to Rs 160 crore and revenue increases 7.3% to Rs 681.7 crore. Maximum revenue came in from industrial design & visualization segment with a 8.7% QoQ growth and embedded product design segment with a 7.6% QoQ growth. However, EBIT margins for the company fell 90 bps QoQ to 30.1%.

Riding High:

Largecap and midcap gainers today include L&T Finance Holdings Ltd. (88.45, 9.26%), Jubilant Foodworks Ltd. (594.75, 7.80%) and Biocon Ltd. (373.95, 6.07%).

Downers:

Largecap and midcap losers today include Jindal Steel & Power Ltd. (540.75, -2.91%), Tata Communications Ltd. (1,282.00, -2.31%) and Larsen & Toubro Infotech Ltd. (5,076.95, -1.81%).

Crowd Puller Stocks

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

Top high volume gainers on BSE included Angel One Ltd. (1,908.95, 17.54%), PNC Infratech Ltd. (271.50, 11.38%) and L&T Finance Holdings Ltd. (88.45, 9.26%).

Top high volume losers on BSE were ICICI Securities Ltd. (597.15, -4.99%), Saregama India Ltd. (4,450.15, -4.51%) and Kalpataru Power Transmissions Ltd. (365.00, -3.76%).

Indostar Capital Finance Ltd. (233.80, 4.40%) was trading at 20.2 times of weekly average. Gland Pharma Ltd. (3,448.70, 5.06%) and TCI Express Ltd. (1,862.90, 2.29%) were trading with volumes 10.7 and 10.4 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

13 stocks overperformed with 52-week highs,

Stocks touching their year highs included - Blue Star Ltd. (1,164.30, 0.13%), Coal India Ltd. (206.90, 3.92%) and Mangalore Refinery And Petrochemicals Ltd. (68.70, 1.18%).

28 stocks climbed above their 200 day SMA including L&T Finance Holdings Ltd. (88.45, 9.26%) and PCBL Ltd. (119.50, 6.60%). 5 stocks slipped below their 200 SMA including Sundram Fasteners Ltd. (830.10, -2.57%) and Astral Ltd. (2,119.95, -1.59%).

 
Trendlyne Marketwatch
Trendlyne Marketwatch
20 Apr 2022
Market closes higher, Alembic Pharma gets USFDA approval to market generic drug

Trendlyne Analysis

Nifty 50 closed higher with the Indian volatility index, India VIX falling by over 5.5%. Most Asian indices closed in the green after US stocks closed sharply higher on Tuesday on the back of strong corporate earnings. However, NASDAQ 100 Futures fell 1% after trading hours as Netflix announced lower-than-expected subscriber numbers in Q4FY22. Crude oil prices snapped a four-day winning streak as International Monetary Fund lowered its forecast for global economic growth by a full percentage point, citing elevated inflation levels due to Russia’s invasion. Safe haven asset Gold continues to trade at elevated levels amid rising inflation and crisis in Ukraine. The pan-European index, STOXX 600 trades higher after positive earnings reports from food and beverages companies.

Nifty Smallcap 100 closed lower, despite the benchmark index closing in the green. Nifty Auto and Nifty Energy closed higher than Tuesday’s levels. Nifty IT, which has lost over 7.5% in last two trading sessions, closed in the green.

Nifty 50closed at 17,136.55 (177.9, 1.1%), BSE Sensexclosed at 57,037.50 (574.4, 1.0%) while the broader Nifty 500closed at 14,850.30 (123.7, 0.8%)

Market breadth is even. Of the 1,895 stocks traded today, 933 were in the positive territory and 918 were negative.

  • Tata Teleservices (Maharashtra), AIA Engineering, Westlife Development, and Infibeam Avenuesare trading with higher volumes as compared to Tuesday.

  • Axis Securities forecasts Nestle India’s revenue to grow moderately at 5.5% YoY to Rs 3,800 crore due to weak consumer demand, exports and rural sentiment. The brokerage expects raw material prices to dent gross margin by 96 bps YoY.

  • PSP Projects rises after announcing new order wins of Rs 611.4 crore for FY22 and Rs 327.4 crore for FY23. The new orders for FY22 include an Ahemdabad-based sports complex project worth Rs 503.6 crore. With the inclusion of these new construction projects of Rs 938.8 crore, the company's order book stands at Rs 1,802.2 crore at the end of FY22 .

  • Energy stocks like Mangalore Refinery and Petrochemicals, Bharat Petroleum Corporation, Hindustan Petroleum Corporation, Reliance Industries and Coal India are rising in trade. The broader sectoral index S&P BSE Energy is also up.

  • Escorts falls after it announces price hikes for tractors effective April 20, to offset the impact of continuous rise in commodity prices and inflation.

  • Sona BLW Precision Forgings inks partnership with Enedym to develop SRM drive platforms for Indian road and usage conditions targeting 2-wheeler high-performance motorcycles, 3-wheeler and 4-wheeler cargo delivery electric vehicles.

  • Vinati Organics is trading with more than seven times its weekly average trading volume. Vijaya Diagnostic Centre, Jamna Auto Industries, ACC, and KPR Mill are trading at more than three times their weekly average trading volumes.

  • Alembic Pharmaceuticals receives US Food and Drug Administration's (USFDA) tentative approval for its lvabradine tablets, 5 mg, and 7.5 mg. This drug is a generic equivalent of Corlanor tablets, which has an estimated annual sales of $ 102 million in the US. Ivabradine is used for symptomatic management of stable heart-related chest pain and heart failure.

  • Mastek’s Q4FY22 net profit rises 5.7% QoQ to 88.2 crore and revenues increase by 7.5% to Rs 599.5 crore. Operating profit margin falls 31 bps QoQ to 20.75% as employee expenses increase by 6.6% to Rs 291 crore. The company’s 12-month order backlog rises 15.6% QoQ to Rs 1,469.1 crore

  • Vinati Organics and Varun Beverages touch an all-time high of Rs 2,275 and Rs 1,080 respectively. Both stocks are rising for three consecutive sessions.

  • HDFC Securities maintains an ‘Add’ rating on Mindtree, but reduces its target price to Rs 4,855 from Rs 4,990, indicating an upside of 22.6%. The brokerage reduced its target price as the company missed revenue estimates. However, HDFCSec remains positive on the company due to its consistent growth in revenue and expansion into European markets.

  • ICICI Securities downgrades its rating on Larsen & Toubro Infotech from ‘HOLD’ to ‘REDUCE’ with a target price of Rs 4,986. The brokerage sees a 9% downside as the company missed revenue estimates due to weak growth in the banking and financial services segment.

  • HDFC sells 2.35 lakh equity shares (10% stake) of HDFC Capital to a wholly-owned subsidiary of Abu Dhabi Investment Authority (ADAI) for Rs 184 crore. ADAI is the primary investor in alternative investment funds managed by HDFC Capital.

  • Rakesh Jhunjhunwala buys a 0.47% stake in Jubilant Pharmova in Q4FY22 taking his holding to 6.76% in the company.

  • Tata Steel Long Products is falling as profit falls 82.46% YoY to Rs 59.6 crore in Q4FY22. The company's revenue rises 16.74% YoY in Q4FY22.

  • Larsen & Toubro Infotech’s Q4FY22 profit rises 4.1% QoQ to Rs 637 crore and revenue rises 4.6% QoQ to Rs 4,435.6 crore on higher deal flow. Revenue growth is driven by Consumer Packed Goods, Pharma, Retail segment growing 6.2% QoQ and Energy & Utilities segment rising 4.5% QoQ. However, EBITDA margin fell 40 bps QoQ to 19.7%.

  • Kolte-Patil Developers' Q4FY22 sales value falls 2% YoY to Rs 501 crore but rises 45% YoY to Rs 1,739 crore in FY22. The company's realization falls 1% per square foot in Q4FY22.

  • Future Enterprises defaults on payment of Rs 29.3 crore of interest on non-convertible debentures (NCDs) for the third time in April 2022. The company defaulted on payment of Rs 9 crore on April 12 and Rs 1.2 crore on April 15.

  • ACC’s Q4FY22 net profit falls 30% YoY to Rs 396 crore as cost of materials rise 14% YoY to Rs 627 per tonne and power and fuel cost surges 32% to Rs 1,323 per tonne. EBITDA margin fell 570 bps YoY to 14.7%. However, net sales increase 3% YoY to Rs 4,322 crore as net selling price of cement rises 5% YoY to Rs 5,112 per tonne.

Riding High:

Largecap and midcap gainers today include Max Healthcare Institute Ltd. (408.95, 10.26%), ACC Ltd. (2,208.25, 7.38%) and Ambuja Cements Ltd. (371.30, 4.81%).

Downers:

Largecap and midcap losers today include Larsen & Toubro Infotech Ltd. (5,170.30, -5.52%), Cholamandalam Investment & Finance Company Ltd. (709.85, -3.66%) and Macrotech Developers Ltd. (1,004.55, -3.61%).

Crowd Puller Stocks

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

Top high volume gainers on BSE included Mangalore Refinery And Petrochemicals Ltd. (67.90, 17.78%), Responsive Industries Ltd. (178.00, 10.49%) and Max Healthcare Institute Ltd. (408.95, 10.26%).

Top high volume losers on BSE were Nilkamal Ltd. (2053.80, -4.58%), Macrotech Developers Ltd. (1,004.55, -3.61%) and Carborundum Universal Ltd. (740.25, -2.60%).

Vinati Organics Ltd. (2,170.65, 3.09%) was trading at 9.7 times of weekly average. Krishna Institute of Medical Sciences Ltd. (1,399.45, -0.20%) and Procter & Gamble Hygiene & Healthcare Ltd. (14,445.35, -1.07%) were trading with volumes 6.9 and 6.5 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

6 stocks hit their 52-week highs,

Stocks touching their year highs included - Coal India Ltd. (199.10, 0.68%), Mangalore Refinery And Petrochemicals Ltd. (67.90, 17.78%) and Swan Energy Ltd. (302.45, 4.93%).

12 stocks climbed above their 200 day SMA including TCI Express Ltd. (1,821.25, 3.99%) and Astral Ltd. (2,154.30, 3.13%). 15 stocks slipped below their 200 SMA including Garware Technical Fibres Ltd. (3,120.80, -3.91%) and Bajaj Finance Ltd. (7,032.50, -3.13%).

 
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The Baseline
20 Apr 2022

The stock market has been volatile over the past quarter, with the conflict in Europe, rising prices, and slowing FII inflows. However some stocks have outperformed both their industry and the indices. This screener tracks industry outperformers over the past quarter.

Some of the most interesting outperformers are in defence, mining, packaging, and agro-processing. The rise of these players has been driven by multiple factors - rising domestic defense spending, the jump in commodity prices, and the recent export demand for Indian wheat and maize as the European conflict has taken Ukrainian and Russian grain out of global markets.