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Trendlyne Marketwatch
Trendlyne Marketwatch
07 Apr 2022
Market closes lower, Macrotech Developers rises after its sales booking see a 37% YoY jump

Trendlyne Analysis

Nifty 50 closed in the red amid weak global cues. All Asian indices closed lower as the US Federal Reserve released minutes from its last meeting which strengthens the case for aggressive rate hikes to combat inflation. US indices fell for a second consecutive day on Wednesday led by the technology stocks. Investors will also keep an eye on the RBI’s policy decision scheduled on Friday. Stoxx Europe 600 index trades higher after posting its biggest fall in a month on Wednesday.

Nifty Midcap 100, which started the trading session in the green, closed 1% lower. Nifty Metal closed sharply lower while Nifty FMCG closed flat. Nifty IT closed in the red, tracking the tech-heavy NASDAQ 100, which fell over 2% on Wednesday.

Nifty 50closed at 17,639.55 (-168.1, -0.9%), BSE Sensex closed at 59,034.95 (-575.5, -1.0%) while the broader Nifty 500 closed at 15,201.25 (-126.7, -0.8%)

Market breadth is in the red. Of the 1,890 stocks traded today, 787 were gainers and 1,070 were losers.

  • Suzlon Energy, Tata Teleservices (Maharashtra), Gland Pharma, and SKF India are trading with higher volumes as compared to Wednesday.

  • Hindustan Aeronautics touches an all-time high on the bourses after it enters into a pact with its long-term partner Israel Aerospace Industries to convert civil (passenger) aircrafts to air refuelling aircrafts with cargo and transport capabilities in India.

  • Axis Securities initiates coverage on Tata Steel with a ‘Buy’ rating and a target price of Rs 1,700, indicating an upside of 26%. The brokerage is bullish for the company as it expects steel prices to remain high, which would drive strong cash flows for the company. The brokerage believes this will enable the company to manage cash flows towards capex and continue deleveraging.

  • Macrotech Developers rises after its sales booking see a 37% YoY jump to Rs 3,460 crore for Q4FY22 and net debt reduces by 620 crore on a QoQ basis. Its collections also improve by 36% YoY to Rs 2,840 crore in Q4.

  • Aster DM Healthcare is trading with more than fifteen times its weekly average trading volume. Tata Teleservices (Maharashtra), Suzlon Energy, Poonawalla Fincorp, and Solara Active Pharma Sciences are trading at more than five times their weekly average trading volumes.

  • Coffee Day Enterprises is falling as it defaults on debt repayments worth Rs 479.7 crore on loans and unlisted debt securities in Q4FY22.

  • Titan falls as its Q4FY22 jewellery segment’s revenue falls 4% YoY on the back of declining activity due to the Omicron wave and rising gold prices. However, the revenue from the watches segment grows 12% YoY and the Eyecare segment grows 5% YoY on underlying demand remaining strong for these segments.

  • Yes Bank rises and hits a 52-week high as Care Ratings upgrades the credit ratings for the banks infrastructure bonds to 'BBB+' from 'BBB'. The lower tier-two bonds and tier-two bonds also receive similar upgrades from the agency.

  • Uma Exports’ shares list at a 11% premium to the issue price of Rs 68 on its debut on the bourses after getting bids for 7.6X of total shares on offer.

  • A consortium of Bandhan Financial Holdings (Bandhan Bank’s parent company), private equity firm ChrysCapital, and GIC (Government of Singapore Investment Corporation) is set to acquire IDFC Asset Management for Rs 4,500 crore, according to reports. The Bandhan group expects the acquisition to aid the company in further expanding its presence in the financial services sector.

  • Zee Entertainment's largest shareholder--Invesco--will sell 7.8% stake in the company worth Rs 2,200 crore through a bulk deal today, according to reports. Invesco currently owns 18.8% stake in the company.

Riding High:

Largecap and midcap gainers today include Ruchi Soya Industries Ltd. (817.70, 8.27%), Bharat Electronics Ltd. (234.35, 6.52%) and YES Bank Ltd. (15.55, 5.78%).

Downers:

Largecap and midcap losers today include Adani Total Gas Ltd. (2,362.70, -6.87%), Adani Power Ltd. (232.55, -4.98%) and Tata Power Company Ltd. (277.80, -4.14%).

Volume Rockets

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

Top high volume gainers on BSE included DCB Bank Ltd. (88.30, 13.42%), Poonawalla Fincorp Ltd. (308.20, 9.95%) and Bharat Dynamics Ltd. (620.85, 8.78%).

Top high volume losers on BSE were Escorts Ltd. (1,715.25, -9.22%), Tata Teleservices (Maharashtra) Ltd. (192.40, -4.99%) and Aster DM Healthcare Ltd. (192.60, -3.02%).

Suzlon Energy Ltd. (11.75, 8.29%) was trading at 13.5 times of weekly average. Orient Electric Ltd. (343.80, -0.72%) and Solara Active Pharma Sciences Ltd. (806.00, 7.78%) were trading with volumes 7.8 and 7.2 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

26 stocks hit their 52-week highs,

Stocks touching their year highs included - Adani Power Ltd. (232.55, -4.98%), Adani Transmission Ltd. (2,458.80, -1.02%) and Bank of Baroda (119.20, -0.58%).

17 stocks climbed above their 200 day SMA including DCB Bank Ltd. (88.30, 13.42%) and YES Bank Ltd. (15.55, 5.78%). 9 stocks slipped below their 200 SMA including Sterling and Wilson Renewable Energy Ltd. (344.75, -3.59%) and PCBL Ltd. (227.20, -3.13%).

 
Trendlyne Marketwatch
Trendlyne Marketwatch
06 Apr 2022
Market closes lower, Marico slips as its Q4FY22 sales volume grows in low-single digits

Trendlyne Analysis

Nifty 50 closed in the red with the Indian volatility index, India VIX rising 3.5%. Most Asian indices closed lower as investors prepare for the possibility of aggressive monetary tightening by the US Federal Reserve to fight inflation. US indices closed lower and bond yields jumped on Tuesday as Federal Reserve Governor Lael Brainard’s comments indicated a fast-track approach to raise interest rates. European indices trade in the red as investors monitor the effects of new sanctions on Russia by the West.

Nifty Midcap 100 closed in the green, despite the benchmark index ending the session lower. Nifty Metal closed sharply higher while Nifty pharma closed in the red. Nifty IT closed in the red, tracking the tech-heavy NASDAQ 100, which closed 2.24% lower on Tuesday.

Nifty 50 closed at 17,807.65 (-149.8, -0.8%), BSE Sensex closed at 59,610.41 (-566.1, -0.9%) while the broader Nifty 500 closed at 15,327.90 (-62.6, -0.4%)

Market breadth is in the green. Of the 1,892 stocks traded today, 1,167 were in the positive territory and 687 were negative.

  • Suzlon Energy, Home First Finance Company India, IIFL Wealth Management, and Cera Sanitaryware are trading with higher volumes as compared to Tuesday.

  • Competition Commission of India investigates the trustee units of State Bank of India, Axis Bank, and IDBI Bank for suspected collusion on fees, according to reports.

  • Asian Development Bank expects the Indian economy to grow at 7.5% in FY23 and at 8% in FY24. It sees the current geopolitical uncertainty and any new COVID-19 outbreaks as key risks to these growth estimates. 

  • Indian Energy Exchange achieves 16% YoY growth in volume to 9,605 million units volume comprising of 8,702 million units in the conventional power market, 392 million units in the green power market and 511 million units in the renewable energy certificate market in March 2022. In Q4FY22 the company achieves 27,017 million units of volume, up 16% YoY, and in FY22 1,02,035 units, up 38% YoY.

  • Mahanagar Gas increases the prices of compressed natural gas by Rs 7 per kg to Rs 67 per kg and domestic piped natural gas by Rs 5 per scm (standard cubic metre) to Rs 41 per scm with effect from April 6, 2022, according to reports.

  • Indraprastha Gas increases the prices of compressed natural gas by Rs 2.5 per kg for Delhi with effect from April 6, 2022, according to news reports. This is the third price hike taken by the company in April 2022. With this, CNG in Delhi now costs Rs 66.6 per kg.

  • Power companies are trading higher with stocks like NTPC, Tata Power, Adani Power and Torrent Power rising. The broader sectoral index i.e. BSE Power is also trading in green today.

  • Marico slips in trade as its Q4FY22 sales volume grows in low-single digits owing to weak rural demand and high inflation, according to the company's pre-result filing. Its flagship product Parachute Coconut Oil particularly registers a fall in sales volumes on YoY basis in Q4.

  • TCI Express is trading with more than eleven times its weekly average trading volume. Shree Renuka Sugars, Solar Industries India, Kalpataru Power Transmissions, and IDBI Bank are trading at more than four times their weekly average trading volumes.

  • Policybazaar's (PB Fintech) total insurance premium originating on its platform Policybazaar at the end of Q4FY22 grows 70% YoY to Rs 2,177 crore and disbursement of loans through its platform Policybazaar grows 72% YoY to Rs 2,189 crore. In FY22, insurance premium originating on its platform is up 46% YoY to Rs 6,975 crore, and loan disbursement through its platform by 126% YoY to Rs 6,607 crore.

  • Paytm's (One97 Communications) total loan originating on its platform at the end of Q4FY22 grows 417% YoY to Rs 3,553 crore and total merchant payment volume processed grows 104% YoY to around Rs 2.59 lakh crore. The company's average monthly transacting users grow 41% YoY to 7.1 crore. In FY22, loans originating on its platform are up 441% YoY to Rs 7,623 crore and total merchant payment volume processed through its platform by 111% YoY to 8.52 lakh crore.

  • Angel One is rising as its client base jumps 2.3 times YoY in Q4FY22 to 92.1 lakh. Number of orders grow 83.6% YoY to 21 crore with its retail turnover market share in the commodity segment increasing by 17 percentage points YoY to 42.2%.

  • Bandhan Bank’s loan book at the end of Q4FY22 grows 16% YoY to Rs 1.01 lakh crore. Total deposits grow 24% YoY to Rs 96,331 crore, with retail deposits increasing 21% YoY to Rs 74,441 crore and CASA (current account savings account) deposits increasing 18% YoY to Rs 40,072 crore.

  • Tata Steel’s production volumes fall 3% YoY to 7.5 million tonnes in Q4FY22 however, Tata Steel India’s production rises 3.2% YoY to 4.9 million tonnes. Tata Steel’s total deliveries rise 4.1% YoY to 7.8 million tonnes because of an increase in domestic demand from the automotive, retail, and industrial products sectors. Tata Steel India’s deliveries increase 9.6% to 5.1 million tonnes in Q4FY22.

Riding High:

Largecap and midcap gainers today include YES Bank Ltd. (14.70, 13.08%), IDBI Bank Ltd. (48.75, 7.85%) and Indian Hotels Company Ltd. (251.05, 6.56%).

Downers:

Largecap and midcap losers today include Ruchi Soya Industries Ltd. (755.25, -13.73%), Max Healthcare Institute Ltd. (346.85, -6.10%) and Marico Ltd. (521.30, -4.16%).

Crowd Puller Stocks

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

Top high volume gainers on BSE included YES Bank Ltd. (14.70, 13.08%), Vaibhav Global Ltd. (515.95, 11.73%) and MMTC Ltd. (53.30, 11.62%).

Top high volume losers on BSE were Ruchi Soya Industries Ltd. (755.25, -13.73%), Rain Industries Ltd. (195.95, -4.34%) and Gland Pharma Ltd. (3,335.60, -1.36%).

TCI Express Ltd. (1,849.30, 7.24%) was trading at 16.1 times of weekly average. Swan Energy Ltd. (262.00, 8.00%) and Kalpataru Power Transmissions Ltd. (403.80, 4.11%) were trading with volumes 13.1 and 7.1 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

29 stocks made 52-week highs,

Stocks touching their year highs included - Adani Power Ltd. (244.75, 5.00%), Bank of Baroda (119.90, 3.36%) and Blue Star Ltd. (1,148.10, 1.40%).

24 stocks climbed above their 200 day SMA including YES Bank Ltd. (14.70, 13.08%) and IOL Chemicals and Pharmaceuticals Ltd. (506.55, 11.77%). 8 stocks slipped below their 200 SMA including Marico Ltd. (521.30, -4.16%) and Housing Development Finance Corporation Ltd. (2,536.05, -3.34%).

 
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The Baseline
06 Apr 2022
Chart of the Week: Truck sales rise with ramp up in infrastructure spending

Post-pandemic, there are still grey clouds that are hampering the Indian auto sector's growth. But if you look at commercial vehicle dispatches, there is a silver lining. Companies likeTata Motors,Mahindra & Mahindra,Eicher Motors,Ashok Leyland, andMaruti Suzuki have seen steady growth in CV wholesale volumes from December 2021 to March 2022.

The rise in wholesales of medium and heavy-duty trucks (medium & heavy commercial vehicles, M&HCV) has been the biggest contributor to the volume growth of commercial vehicles.Ashok Leyland’s M&HCV volumes jumped 38.6% YoY to 12,161 units, whileTata Motors saw 33% YoY growth to 14,499 units for March 2022. This is because of a pick-up in construction and mining activities leading to an increase in demand for trucks.  

Eicher Motors' heavy-duty vehicles’ wholesales has also risen 41% YoY to 2,006 units in March 2022. According to a report fromDolat Capital, the demand for medium and heavy-duty trucks will continue to stay strong because of high fleet utilisation and freight availability, as construction and industrial activities will be on an uptrend in FY23.

Demand for light commercial vehicles (LCV) has increased as chip supplies improved.Mahindra & Mahindra’s LCV wholesales jumped 132% YoY to 3,806 units in March 2022. But heavy-duty truck wholesales has grown slowly. The surge in e-commerce sales rubbed off onMaruti Suzuki’s LCV wholesales - it gained 15% YoY to 3,797 units in March 2022. 

According toEmkay Global, the volume momentum for CVs will continue as chip supplies for LCVs and tippers improve.Nirmal Bang expects demand drivers to remain intact in coming months. However, it’ll be interesting to see how long demand sustains. A recentreport suggests that even though the Centre is going full throttle to meet its capital expenditure targets, it will most likely fall short of meeting its revised capital expenditure target of Rs 6 lakh crore for FY22. If this continues into FY23 as well, then the party for commercial vehicle makers might end early.

 
Trendlyne Marketwatch
Trendlyne Marketwatch
05 Apr 2022
Market closes lower, Axis Securities maintains a ‘Buy’ rating on Wipro

Trendlyne Analysis

Nifty 50 closed in the red after gyrating between gains and losses. Most Asian indices closed higher amid mixed global cues. US equities ended sharply higher on Monday led by technology stocks. The tech-focused NASDAQ 100 closed over 2% higher with Twitter surging over 25% after the CEO of Tesla, Elon Musk picked up a 9.2% stake in the microblogging site. Crude oil prices continue to trade at elevated levels as the potential for more sanctions added to concerns about supply chain disruptions, while Iran nuclear talks stalled.

Nifty Midcap 100 and Nifty Smallcap 100 closed higher despite the benchmark index closing in the red. Nifty PSU Bank, which gained close to 5% in the last two trading sessions, closed in the green. Nifty IT closed flat, tracking the NASDAQ 100 futures.

Nifty 50 closed at 17,957.40 (-96, -0.5%), BSE Sensex closed at 60,176.50 (-435.2, -0.7%) while the broader Nifty 500 closed at 15,390.50 (6.3, 0.0%)

Market breadth is overwhelmingly positive. Of the 1,882 stocks traded today, 1,319 were on the uptick, and 533 were down.

  • J B Chemicals & Pharmaceuticals,Suzlon Energy,PNC Infratech, and IIFL Finance of India are trading with higher volumes as compared to Monday.

  • KEC International receives new orders worth Rs 945 crore across its various businesses. The contracts include substation order in India from Power Grid Corporation of India, transmission line order in SAARC and underground cabling project in India among others.

  • Hindustan Zinc’s March 2022 production of mined metal rises 3% YoY to 2.95 lakh tonnes and integrated saleable metal rises 2% YoY to 2.6 lakh tonnes. In FY22, mined metal production rises 5% YoY to 10.17 lakh tonnes, and integrated saleable metal production rises 4% YoY to 9.67 lakh tonnes.

  • Consumer facing companies are trading higher with stocks like Titan, Havells, Voltas, Aditya Birla Fashion and Retail, and Whirlpool of India rising. The broader sectoral index i.e. BSE Consumer Durables is also trading in the green today.

  • Hariom Pipes' Rs 130.1-crore IPO gets bids for 7.9X of the available 85 lakh shares on offer on the last day of bidding. Retail investors put in bids for 12.1X of the available 29.75 lakh shares. The offer comprises entirely of a fresh issue of Rs 130.1 crore.

  • Larsen & Toubro's arm L&T Construction receives various orders from prestigious clients worth Rs 1,000-2,500 crore. The contracts include an order from the Tamil Nadu Road Infrastructure Development Corporation to construct the Chennai peripheral ring road, an order from the Uttar Pradesh Metro Rail Corporation, an order involving design, supply, installation, testing, and commissioning of 750 Volt DC third rail traction system among others.

  • HDFC Securities maintains a ‘Buy’ rating on Oil and Natural Gas Corporation (ONGC) with a target price of Rs 275, indicating an upside of 63.7%. The brokerage remains bullish for the company as it expects Brent crude prices to remain elevated, and gas prices to rise 45% in H2FY23. The brokerage expects the company’s realisations to improve due to high oil and gas prices and profit to grow at 14% CAGR over FY22-24.

  • Axis Securities maintains a ‘Buy’ rating on Wipro with a target price of Rs 675, indicating an upside of 12%. The brokerage maintains a positive outlook on the company due to its robust deal pipeline and expanding digital transformation services.

  • SBI Cards and Payment Services is trading with more than fourty times its weekly average trading volume. Dilip Buildcon, Triveni Turbine, Gujarat Pipavav Port, and Glenmark Life Sciences are trading at more than five times their weekly average trading volumes.

  • MOIL's turnover grows 22% YoY to Rs 1,436 crore in FY22. The company's production increases 8% YoY to 12.31 lakh metric tonnes on the back of product planning and marketing strategy.

  • Vedanta’s alumina production rises 7% YoY to 1.96 million tonnes in FY22 with aluminium production increasing 15% YoY to 2.26 million tonnes as production activities ramp up and operational efficacy improves. Integrated metal production, consisting of zinc, lead and silver rises 4% YoY to 0.96 million tonnes. Karnataka iron-ore production rises 8% YoY to 5.4 million tonnes however production in Goa mines remains suspended. Copper production at Silvassa refinery continues with an increase of 24% YoY to 0.12 million tonnes in FY22.

  • Zomato is falling as the Competition Commission of India (CCI) orders an investigation into conduct of Zomato and Swiggy. CCI believes that the downstream commercial interest of Zomato and Swiggy through private labels and cloud kitchens may affect platform neutrality and requires detailed examination.

  • IndusInd Bank’s net advances at the end of Q4FY22 grow 13% YoY to Rs 2.39 lakh crore. Deposits rise 15% YoY to Rs 2.93 lakh crore with retail deposits rising 6% QoQ to Rs 1.20 lakh crore.

  • Bajaj Finance’s loan advances at the end of Q4FY22 grow 29.1% YoY to Rs 1.97 lakh crore with number of new loans booked increasing 14.5% YoY to 63 crore. Deposits grow 19.4% YoY to Rs 30,800 crore. The NBFC’s liquidity remains strong with a liquidity surplus at Rs 10,000 crore as of March 31, 2022.

Riding High:

Largecap and midcap gainers today include Adani Power Ltd. (233.10, 9.98%), Tata Power Company Ltd. (273.60, 8.59%) and Polycab India Ltd. (2,654.45, 7.50%).

Downers:

Largecap and midcap losers today include Ruchi Soya Industries Ltd. (875.40, -6.73%), SBI Cards and Payment Services Ltd. (839.00, -4.24%) and Federal Bank Ltd. (98.25, -4.15%).

Volume Rockets

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

Top high volume gainers on BSE included Dilip Buildcon Ltd. (302.00, 19.98%), Vaibhav Global Ltd. (461.80, 13.38%) and Gujarat Pipavav Port Ltd. (91.35, 11.95%).

Top high volume losers on BSE were SBI Cards and Payment Services Ltd. (839.00, -4.24%) and Cera Sanitaryware Ltd. (4,810.25, -0.12%).

Mangalore Refinery And Petrochemicals Ltd. (49.25, 11.93%) was trading at 10.7 times of weekly average. Triveni Turbine Ltd. (211.75, 3.98%) and Metropolis Healthcare Ltd. (2,415.35, 8.02%) were trading with volumes 9.5 and 7.3 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

24 stocks overperformed with 52-week highs,

Stocks touching their year highs included - Adani Power Ltd. (233.10, 9.98%), Bajaj Holdings & Investment Ltd. (6,143.40, 5.40%) and Blue Star Ltd. (1,132.30, 3.06%).

36 stocks climbed above their 200 day SMA including Mangalore Refinery And Petrochemicals Ltd. (49.25, 11.93%) and Balaji Amines Ltd. (3,421.55, 6.91%). 3 stocks slipped below their 200 SMA including Poly Medicure Ltd. (898.20, -0.64%) and Aditya Birla Capital Ltd. (113.25, -0.57%).

 
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The Baseline
04 Apr 2022
Five analyst stock picks this week

  1. Tata Consumer Products: ICICI Securities maintains a ‘Buy’ call on this packaged foods company with a target price of Rs 925. This indicates an upside of 17.4%. The company in a conference call said that it is in the process of creating a simplified corporate structure for its consumer businesses. “Post acquiring 100% stake in the international tea business and Tata Coffee, Tata Consumer Products has created a simplified structure to sell commodity/ low-growth/ low-profit businesses,” say analysts Manoj Menon, Aniruddha Joshi, and Karan Bhuwania. 

The brokerage expects some revenue synergies, especially in the coffee extraction business. The analysts believe there is further scope to reduce the complexity of the company’s structure and are positive on the stock hoping for further restructuring of the corporate structure in FY23.

  1. Emami: Motilal Oswal maintains a ‘Buy’ rating on this FMCG company, but cut its target price to Rs 540 from Rs 650. This indicates an upside of 19.3%. The brokerage reduced its target price as FY22 sales of Rs 3,200 crore were lesser than its domestic peers like Marico, Britannia, and Dabur. However, its revenues grew at a CAGR of 9.3% over FY20-22, compared to 3.7% in the preceding 5 years.

The brokerage is bullish on the company’s new acquisition of the Dermicool brand from Reckitt Benckiser India. It expects the acquisition to make the company a market leader in the category. “The acquisition of Dermicool, the third-largest player in the ‘Prickly Heat and Cool Talc’ category, gives Emami market leadership in this category,” say analysts Krishnan Sambamoorthy, Dhairya Dhruv, and Kaiwan Jal Olia. The acquisition will give the company a combined market share of 45%, making it the largest player in the category. The company’s Navratna Cool Talc is the second-largest brand in the market. Through this acquisition, the company expects its geographical reach to expand as both businesses have common distribution channels.

  1. Aptus Value Housing Finance India: Axis Securities has initiated coverage on this housing finance company with a ‘Buy’ rating and a target price of Rs 400. This indicates an upside of 14.4%. The brokerage believes the company is well placed to benefit from the rapidly growing affordable housing finance segment, with its deep rural penetration in South India and improving asset quality trends. Although the company operates in a ‘high-risk’ self-employed segment, where repayments are not regular during times of disruptions, it managed to maintain robust asset quality. 

The company has maintained its asset quality due to its focus on risk management. “Over the years, Aptus has successfully developed expertise in serving self-employed and new-to-credit customers alongside maintaining robust asset quality,” says analyst Dnyanada Vaidya. Deep penetration and a strong customer connection have given the company pricing power that enables it to generate superior RoA (Return on Assets). The company is already operating at its pre-covid levels, and with improving traction in collections the brokerage expects the loan book to report healthy growth of 27% CAGR over FY22-24.

  1. Balaji Amines: Edelweiss maintains a ‘Buy’ call on this specialty chemicals maker and has increased its target price to Rs 4,150, indicating an upside of 29.7%. Analysts from Edelweiss visited the plant in Solapur to meet the management to discuss the company’s business operations, pricing trends, and capital expenditure plans. The company’s management said they are hiking prices, to offset sharp increases in raw material costs, which continued to rise in 4QFY22. The company plans to commercialise captive coal-based power plants to reduce reliance on purchasing high-cost electricity. The management expects healthy top line growth, driven by the ramp-up of ethyl amines,  dimethyl carbonate, and dimethylformamide plants.

The management took a cautious approach in announcing capex and prioritising capital deployment in import substitution projects. The analyst Anshul Verdia says, “Our estimate suggests over Rs 600 crore of capital expenditure in the next two to three years.” After the recent plant visit, the brokerage remains confident on the company’s prospects on the back of execution quality and the company’s product mix.

  1. PVR: Prabhudas Lilladhar has given a ‘Buy’ rating to this multiplex chain with a target price of Rs 2,224, indicating an upside of 16.4%. “The PVR and Inox merger will create a multiplex behemoth with a network of 1,500+ screens across India,” say analysts  Jinesh Joshi and Shweta Shekhawat. The company plans to add an additional 200 screens each year. The merger would not require Competition Commission of India’s approval as revenues of the combined entity will be below the threshold of Rs 1,000 crore for scrutiny by the competition watchdog. The analysts add that the merger will give the company an ‘invincible’ size advantage. They expect the merger to result in material revenue and cost synergies by improving bargaining power with film distributors, real estate developers, advertising networks, and ticket aggregators. For the merged entity, the analysts expect profit, revenue and EBITDA of Rs 660 crore, Rs 7,260 crore and Rs 1,460 crore in FY24, respectively. 

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

 
Trendlyne Marketwatch
Trendlyne Marketwatch
04 Apr 2022
Market closes higher, IDFC First Bank’s loan advances at the end of Q4FY22 grow 12.8% YoY

Trendlyne Analysis

Nifty 50 extended its gains throughout the day to end above 18,000 for the first time in two and a half months. The Indian Volatility index, India VIX falls for an eighth consecutive trading session. Most Asian indices trade higher but US treasury bonds fall with the possibility of the Fed taking a fast-track approach to raise interest rates. The two-year treasury yield exceeded the 30-year treasury yield for the first time since 2007 last week. Analysts believe that this bond yield inversion indicates that a recession could be in the cards. Most European indices trade flat as some European Union governments mull a new set of sanctions on Russia after allegations of war crimes emerged.

Nifty Midcap 100 and Nifty Smallcap 100 closed in the green, following the benchmark index. All sectoral indices closed higher than Friday’s levels. Nifty IT closes higher, taking cues from the tech-heavy NASDAQ 100 futures, which is also trading higher.

Nifty 50 closed at 18,053.40 (383.0, 2.2%), BSE Sensex closed at 60,611.74 (1,335.1, 2.3%) while the broader Nifty 500 closed at 15,384.20 (296.9, 2.0%)

Market breadth is ticking up strongly. Of the 1,908 stocks traded today, 1,523 were on the uptrend, and 351 went down.

  • Tata Teleservices (Maharashtra), Cholamandalam Financial Holdings, Grindwell Norton, and Tube Investments of India are trading with higher volumes as compared to Friday.

  • Ashika Research initiates coverage on Aditya Birla Fashion and Retail with a ‘Buy’ rating and target price of Rs 350 indicating an upside of 16%. The brokerage is bullish for the company on the back of its various acquisitions and plans to create a D2C (Direct-to-Consumer) platform. The brokerage expects the company’s EBITDA to grow 53.6% YoY in FY23 over FY22.

  • PB Fintech is rising after Morgan Stanley upgrades its rating on the stock to 'Overweight'. The brokerage changes its stance on the stock as in its view the recent price correction makes the stock attractive. However, it is still cautious about the insurance sector due to the risk of lower growth and higher capital costs.

  • Hariom Pipes' Rs 130.1-crore IPO gets bids for 3.4X of the available 85 lakh shares on offer on the fourth day of bidding. Retail investors put in bids for 7.2X of the available 29.75 lakh shares. The offer comprises entirely of a fresh issue of Rs 130.1 crore.

  • IDFC First Bank’s loan advances at the end of Q4FY22 grow 12.8% YoY to Rs 1.32 lakh crore with retail and commercial loans rising 26.4% YoY. Retail loan is up as home loan segment rises 52.1% YoY. CASA deposits rise 12% YoY to Rs 51,407 crore.

  • Edelweiss maintains a ‘BUY’ rating on Cyient with a target price of Rs 1,030, indicating an upside of 11%. The brokerage remains positive about the company on the back of its expertise in areas of mapping and designing across diversified segments and in a variety of end-user IT environments. The brokerage expects the company’s revenue to grow at a 12.7% CAGR over FY22-FY24.

  • Bajaj Auto's March total wholesales fall 20% YoY to 2,97,188 units. Two-wheeler wholesales fall 22% YoY to 2,56,324 units but three-wheeler wholesales rise 4% YoY to 40,864 units. For FY22, the company's total wholesales rise 8% YoY to 43,08,433 units including a 22% YoY rise in exports to 25,06,626.

  • Housing Development Finance Corporation is trading with more than seven times its weekly average trading volume.Mazagon Dock Shipbuilders, Godrej Agrovet, HDFC Bank, and HDFC Life Insurance Company are trading at more than four times their weekly average trading volumes.

  • Indraprastha Gas increases the prices of compressed natural gas by Rs 0.80 per kg and piped natural gas by Rs 5.85 per standard cubic metre for Delhi with effect from April 1, 2022. This is the fourth price hike after the company hiked gas prices back in October 2021, January 2022 and March 2022.

  • HDFC Bank’s loan advances at the end of Q4FY22 grow 21% YoY to Rs 13.7 lakh crore with corporate loans growing 17.5% and commercial & rural banking loans rising 31% YoY. Deposits grow 16.8% YoY to Rs 15.5 lakh crore, with retail deposits rising 18.5% YoY and CASA deposits by 22% YoY to Rs 7.5 lakh crore.

  • NMDC is rising as its iron ore production rises 23% YoY to 42.15 million tonnes (MT) in FY22. NMDC also reports its highest ever production and sales numbers in the month of March. The iron ore production in March rises 9% YoY to 4.98 MT while the sales increased by 3% to 4.21 MT.

  • Adani Ports & Special Economic Zone (APSEZ) cargo volumes rise 12% YoY in March 2022 to 29.16 million metric tonnes. In FY22, APSEZ’s total cargo volumes rise 26% YoY to 312.39 million metric tonnes.

  • JSW Energy is rising as its wholly-owned subsidiary, JSW Neo Energy enters into a memorandum of understanding (MoU) with the government of Chhattisgarh to set up a 1,000 MW capacity hydro pumped storage project (PSP). PSP is a well-established technology that is mainly used to solve intermittent power supply issues through renewable energies.

  • HDFC Bank and HDFC's boards approve the merger scheme of both companies. It will be a two-step process with HDFC Investments and HDFC Holdings first merging with HDFC. Then, HDFC will merge with HDFC Bank. The share exchange ratio proposed is 42 equity shares of HDFC Bank for 25 fully paid-up equity shares of HDFC.

Riding High:

Largecap and midcap gainers today include HDFC Bank Ltd. (1,656.80, 10.01%), Housing Development Finance Corporation Ltd. (2,680.05, 9.29%) and Adani Green Energy Ltd. (2,110.45, 8.50%).

Downers:

Largecap and midcap losers today include GlaxoSmithKline Pharmaceuticals Ltd. (1,625.75, -1.96%), Kansai Nerolac Paints Ltd. (462.20, -1.62%) and ACC Ltd. (2,119.45, -1.47%).

Movers and Shakers

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

Top high volume gainers on BSE included Godrej Agrovet Ltd. (545.90, 18.93%), PTC India Ltd. (95.00, 10.27%) and HDFC Bank Ltd. (1,656.80, 10.01%).

Mazagon Dock Shipbuilders Ltd. (271.55, 7.99%) was trading at 11.7 times of weekly average. Housing Development Finance Corporation Ltd. (2,680.05, 9.29%) and J B Chemicals & Pharmaceuticals Ltd. (1,600.85, 2.83%) were trading with volumes 9.5 and 5.2 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

20 stocks made 52-week highs,

Stocks touching their year highs included - Adani Power Ltd. (211.95, 4.18%), Bajaj Holdings & Investment Ltd. (5,828.45, 7.96%) and Cummins India Ltd. (1,128.25, -0.74%).

29 stocks climbed above their 200 day SMA including HDFC Bank Ltd. (1,656.80, 10.01%) and Housing Development Finance Corporation Ltd. (2,680.05, 9.29%). 6 stocks slipped below their 200 SMA including TeamLease Services Ltd. (4,033.80, -5.03%) and Poly Medicure Ltd. (904.00, -3.10%).

 
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The Baseline
02 Apr 2022
The financial year just ended. Is FY23 going to be better?

FY22 has been a difficult financial year for corporate India. Companies across most sectors saw their margins come under pressure as India Inc felt the double-punch of higher inflation and supply chain shortages.

Commodity prices jumped with the conflict in Europe. As a result, agencies like Fitch, ICRA, and Morgan Stanley have slashed India’s FY23 GDP growth estimates by over 100 bps, to 7.9% on average.

Are things going to get better in FY23?

In this week’s Analyticks, we look back on the performance of major consumption-driven sectors in FY22 and discuss what we can expect from them in FY23. 

  • Seeing red: Paint makers’ margins may stay under pressure even as demand jumps 
  • People are packing bags: Hotels expect a bumper 'Summer of '22' with strong bookings for next 100 days
  • Unlocking profits: Fashion retailers plan for growth as shoppers return 
  • The cookie crumbles: FMCG companies hit by rising input costs, which see no signs of ebbing

Paint makers’ margins under pressure, even as demand looks positive

Cost pressures for paints companies began in Q2FY22, and EBITDA margins of the top players contracted by over six percentage points YoY that quarter. The prices of inputs like crude oil and titanium dioxide (TiO2) were up 40-50% YoY in Q2FY22. And it continued to rise, as titanium dioxide costs spiked another 29.5% QoQ in Q3FY22.

The paints sector (top 6 companies) underperformed the Nifty 500 by 9.56% in FY22. Only one paint stock made it to the relative outperformance screener.

These inflationary trends have caused paint makers to undertake double-digit price hikes, of 18-27% in the nine months ended December 2021. In fact, according to ICICIDirect, paint makers will have to raise prices by another 5-6% to offset the 30% QoQ rise in price of crude oil derivatives in Q4FY22. 

However, there is a silver lining. Sales jumped, as the festival season had people sprucing up their homes for visiting family and friends. Paint makers like Asian Paints and Berger Paints reported double-digit rise in sales volumes in Q2FY22 and Q3FY22, driven by decorative paints. Asian Paintsexpects to maintain its volume growth trajectory in Q4FY22 as consumer demand revived February 2022 onwards. 

But current inflationary trends have led analysts to cut FY23 earnings estimates for paint makers by 13-16%. This might be the first of many cuts in estimates if crude oil levels continue to hover near $110/bbl levels.

Sunny outlook for hotels, as summer travel jumps

We are pretty sure that almost everyone you know is planning a holiday. After a long, lean time, when you could book a room in the ITC Gardenia for under Rs, 5000, the hospitality sector finally raked in some profits in Q3FY22. This came after six back-to-back quarters of net losses.

Market leader Indian Hotels saw its occupancy levels for domestic properties rise to 94% of FY20 levels due to higher leisure travel. The hotels sector (top 10 listed players) outperformed the Nifty 500 by 83.6% in FY22. Two hotel stocks made it to the relative outperformance screener. 

Both Indian Hotels and EIH reported a profit for the first time after six quarters in Q3FY22. 

Interestingly, revenues generated from Indian Hotels’ properties in Goa and Rajasthan in Q3FY22 exceeded Q3FY20 levels. 

For EIH, hotels in Udaipur, Chandigarh, Shimla and Bengaluru grew by over 35% on an average over Q3FY20 levels. 

While January was a washout month for the sector, it saw a swift recovery from February 2022 onward. In fact according to Indian Hotels, travel bookings for March to May 2022 have surpassed March to May 2019 levels. It's not just leisure travel that is seeing strong traction - corporate bookings are also up with a rise in offsite events and conferences. 

The quality of holidays is also a focus for Indian travelers now. According to Easy Trip Planners, bookings for business class seats on flights and five-star hotels for the summer of 2022 have doubled compared to pre-pandemic levels. 

According to a recent survey by Deloitte, pretty much no one is planning on staying home in April. Over 80% of Indian consumers plan to undertake leisure/business travel in the next 3-4 weeks. With international travel opened up from March 27, 2022, hotels certainly await a bright summer in 2022. 

Fashion retailers see growth on the horizon

After two forgettable quarters, the festive and wedding season brought some shine back for fashion retailers in Q3FY22. The retailing sector outperformed the Nifty 500 by 25.48% in FY22. One stock made it to the relative outperformance screener.

Trent and Shoppers Stop saw strong traction in the beauty, personal care and innerwear segments in Q3. According to Motilal Oswal, Q3FY22 revenues from Trent’s value format ‘Zudio’ grew almost 3.7X over FY20 levels. 

Aditya Birla Fashion’s Madura segment or lifestyle brands’ Q3 revenue grew over 20% compared to FY20. Pantaloons’ revenues reached 98% of pre-Covid levels and athleisure brands saw over 30% YoY jump in Q3 sales. 

Although January was disappointing for the retailers, demand revived from February according to Shoppers Stop’s management. Shoppers Stop has claimed that its March 2022 revenues are likely to cross the pre-pandemic levels, seeing early trends. 

Shoppers Stop aims to double its revenues in the next 3-4 years. This sales growth CAGR of 19% will be driven by the high-margin private labels segment and by achieving same store sales growth of 9-11% for existing outlets. 

Aditya Birla Fashion, on the other hand, not only has aggressive store expansion plans, but is also looking to build a separate digital platform for its direct-to-consumer (D2C) business.

ABFRL is looking to have around 25-30 D2C brands in its digital portfolio over the next 3-5 years which will contribute over 10% share to its top line. The company sees a market opportunity of $100 billion in the D2C business by FY25.

ABFRL investedin four companies between January 2021 and January 2022 to strengthen its ethnic wear, sports and athleisure business segments. It plans to scale up the annual revenues of its ethnic wear subsidiaries to Rs 1,500 crore from Rs 400 crore on a trailing 12-month basis in next 4-5 years. 

All in all, Indian fashion retailers are set to begin FY23 on a highly positive note. 

FMCG sector struggles, as costs pinch hard

If those Good Day biscuits have been tasting more like Ok Day biscuits recently, you can blame rising costs of inputs like vegetable and palm oil. The FMCG space has been dealing with rising raw material costs since the start of FY22.

In Q1FY22 the sector was battling not just raw material cost inflation but also the second wave of pandemic. There was some improvement in Q2FY22. According to Prabhudas Lilladher, FMCG sales grew 2.95% YoY to Rs 4,040 crore in Q2FY22, with EBITDA growing 2.2% YoY to Rs 4,020 crore. EBITDA margins averaged around 15-20%.

This was because of stabilizing sales of consumer staples like packaged foods, biscuits and beverages, as the pandemic waned.

Hindustan Unilever(HUL) and Tata Consumer Products’ (TCPL) EBITDA margins rose 40 and 70 bps to 25.4% and 14.6%,  respectively, in Q3FY22. Nestle and Dabur’s Q3 margins were impacted because of an increase in staff costs. Britannia’s rise in other expenses by 7.3% QoQ to Rs 687.75 crore affected its margins.

Input costs pressures may shrink margins

Q3FY22 showed signs of improvement as the festive season boosted demand. HUL and Britannia captured this as their gross margins improved that quarter.

As crude oil, vegetable, and palm oil prices cooled down in December 2021 because of import duty reduction, the cost of raw materials fell for most companies.

TCPL and Dabur’s cost of raw materials fell 10% QoQ and 9% QoQ, respectively. Nestle’s raw material cost increased in Q3FY22 by 11% QoQ to Rs 1,662 crore because of commodity price inflation. 

Most companies are now hiking prices to offset the margin hit. Companies have hinted at further price hikes in Q4FY22. Britannia might hike prices by 10-11% in Q4FY22 to offset inflation. The management of these companies expects inflation woes to wane in FY23, depending on the global supply available to meet rising demand.

Two stocks in the FMCG sector made it to this relative outperformance screener. Nifty FMCGunderperformed Nifty 500 by 15.3% in FY22.

We'll visit a second set of sectors in the next Analyticks instalment.

Signing off this week,

The Trendlyne Team

 
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The Baseline
01 Apr 2022
Five Interesting Stocks Today
  1. Bharti Airtel: This telecom company’s stock surged over 5.5% after it held its analyst day on March 25, 2022. Brokerages across the spectrum are bullish on the company’s future prospects and see an average target price upside of over 20% to Rs 892 levels. The company is mulling 2-3 hikes in its tariff plans over the next few years to boost its average revenue per user (ARPU) to sustainable levels. However, it will be successful in this endeavour only if Reliance Jio follows suit.

Bharti is looking to grow its ARPU to Rs 300 in the medium-term from Q3FY22 levels of Rs 163. At the current levels, the company clocks RoCE of just 6% which is lower than its cost of capital. Even if Bharti is able to make average revenues of Rs 250 per user, it can see an RoCE of 20%+. Hence, any future tariff hikes should be a key monitorable for investors.

The next leg of growth will come from its digital products and services, according to the company. The cumulative market opportunity for cloud communication, data centres, security, IoT and network as a service (NaaS) is around Rs 36,000 crore as of FY22. This market will grow at 25% CAGR to reach almost Rs 70,000 crore by FY25. The company's key products for its enterprise segment (B2B) such as Airtel IQ (CPaas), Nxtra (data centres), Airtel Secure and Airtel Ads could see stellar growth in the next 3-4 years. Another potential growth driver for the company will be the Airtel Payments Bank. This business already broke even in July 2021, and clocks a gross merchandise value of Rs 37,000 crore per quarter.

  1. Aurobindo Pharma: This pharmaceutical company acquired Veritaz Healthcare for Rs 171 crore on March 28 to foray into the domestic formulations business. Aurobindo Pharma derives about 90% of its total revenue from international markets. Given the intense pricing pressure in the US and with export costs increasing, Aurobindo Pharma has turned towards domestic markets (India) to diversify its revenue mix. Veritaz Healthcare is an Indian pharma company specializing in branded generic formulations with a turnover of Rs 133 crore in 9MFY22. This 10-year-old company has around 40 brands across acute and critical care segments. The addressable market for its current product portfolio is Rs 26,775 crore.

Brokerages like Geojit BNP Paribas and Axis Securities have a long-term positive outlook on the company. However, a flash report by BOB Capital Markets released on Wednesday isn’t too optimistic on the acquisition. The brokerage says the strategy behind the acquisition is unclear and it is also sceptical on the financial planning post the acquisition. Hence, BOB Caps did not include the Veritaz acquisition while modelling its target price and stance. The brokerage believes that the low-value products of Veritaz in highly competitive segments aren’t compelling for Aurobindo Pharma. The investors reflected the same sentiment as the stock price has fallen over 5% since the announcement of the acquisition.

Like other pharma companies, Aurobindo Pharma witnessed significant price erosion in the US markets in Q3FY22. The operating profit margin decreased by over 450 basis points in Q3FY22 to 16.93%. The operating profit margin is on a downtrend since the start of FY22 owing to the intense competition globally. The company struggled to post YoY revenue growth for the past four quarters. Given these weak cues, the company has turned towards Indian markets to drive revenue growth.

  1. G R Infraprojects: This infrastructure company’s stock rose 7.4% in five consecutive sessions till March 31, 2022 after it announced that it received Letter of Award (LoA) for five projects worth Rs 5,774 crore from the National Highways Authority of India (NHAI). All the projects to be constructed are under hybrid annuity mode (HAM). As of Q3FY22, the company’s order book stood robust at Rs 14,599 crore, which is twice its FY21 revenue. Its order book comprises road projects and metro projects and its order book mix is as follows - 67% HAM projects, 28% EPC (engineering, procurement, and construction) projects, and 5% railway and metro projects. According toICICI Securities, the focus on HAM projects bodes well for the company as HAM projects have a 20%+ operating margin, whereas EPC projects have a 14-15% operating margin. The company has also diversified into the power transmission segment to widen its opportunity landscape.

According to reports, NHAI has undertaken measures aimed at preventing excessive and aggressive bidding. It has reinstated the earnest money deposits (EMD) requirements and raised the net worth requirements for HAM projects to ensure that the successful bidder does not falter on achieving financial closure and leaving the project incomplete. These measures are expected to lead to a reduction in competitive intensity in FY23 and benefit financially sound players. G R Infraprojects will benefit from these measures due to its strong balance sheet and access to growth capital. According to Axis Securities, the company is well placed to capitalise on opportunities in the construction segment by leveraging its healthy financial position, healthy order inflows, and timely execution prowess.

  1. Hindalco: This aluminium miner’s stock touched an all-time high of Rs 634.95 this week, as LME (London Metal Exchange) prices of aluminium are soaring due to a supply crunch caused by the Russia-Ukraine conflict. With the aluminium supply deficit and strong demand for aluminium from major segments like beverage cans, automotive body sheets, specialities, and aerospace, the management expects higher LME prices to prevail through FY23 and FY24.

The management announced a growth capex of nearly $8 billion over 5 years. Of the total capex, $4.5-4.8 billion would be incurred at Novelis while $3.37 billion would be spent on the India business.The company expects $2 billion of free cash flow (FCF) post sustaining capex and has created a roadmap to allocate 75% of FCF toward growth projects. The company plans to increase the capacity of Novelis by 1.3 million tonnes per annum (mtpa) to 5.8 mtpa, to meet the growing demand for auto parts and beverage cans in North America. The management sees a growing demand-supply gap for beverage cans in the next 7-8 years in North America as an opportunity to expand. As for its India operations, the company plans to expand its upstream and downstream further to raise its aluminium capacity to meet growing demand in the Indian market. Better realisations can be expected in the Indian operations as Hindalco obtains a majority of its coal requirements from Coal India and its captive mines. The company plans to increase production in captive mining to enhance its coal security and reduce energy expenses. So far, the business environment is favourable for Hindalco, the only headwinds being supply-chain disruptions which may impact its margins.

  1. Axis Bank: This private banker’s stock rose 2% on Thursday after it announced the acquisition of Citibank India’s consumer business for Rs 12,235 crore. Citibank’s Indian businesses include credit cards, retail banking, wealth management, and consumer loans.

Citibank is the seventh-largest player in the outstanding credit card segment with a customer base of 26 lakh and a market share of 3.6% in February 2022. Analysts at Motilal Oswal expect that Axis Bank’s acquisition of Citibank’s consumer business will help it increase its credit cards market share to 15.6% from 12% giving tough competition to ICICI Bank which has a market share of 17.8%. The acquisition will also boost Axis Bank’s loan book by 4.1% to Rs 6.9 lakh crore with the retail loan mix increasing 177 bps to 57%. The retail loan mix for Q3FY22 stands at 55% in Q3FY22.

The acquisition seems like a welcome change. However, some analysts are sceptical about the move. HDFC Securities didn’t revise its target price after this deal was announced. Motilal Oswal reduced its target price as it expects the benefits of the acquisition to show up only after two years. A Jefferies report suggests that Citibank’s standalone business growth is modest and this might not add up to Axis Bank’s earnings until FY26.

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
01 Apr 2022
Market closes higher, Motilal Oswal maintains a ‘BUY’ rating on ACC

Trendlyne Analysis

Indian indices start the new financial year in green amidst strong buying pressure towards the end of the trading session. Crude oil prices continue to decline as the US plans to release around a million barrels of crude oil a day from its strategic petroleum reserves to curb the rise in fuel prices. Asian indices closed mixed amid weak global cues as China extended the lockdown in Shanghai to curb a surge in Covid 19 cases. US indices fell on Thursday as investors continue to weigh the risks from tighter US Federal Reserve monetary policy and the war in Ukraine.

Nifty Next 50 and Nifty Smallcap 100 closed in the green following the benchmark index. Nifty Bank, which opened lower, closed over 2% higher. Nifty IT closed in the green, tracking the tech-focused NASDAQ 100 Futures, which is trading higher.

Nifty 50 closed at 17,670.45 (205.7, 1.2%), BSE Sensex closed at 59,276.69 (708.2, 1.2%) while the broader Nifty 500 closed at 15,087.30 (192.8, 1.3%)

Market breadth is ticking up strongly. Of the 1,880 stocks traded today, 1,591 were on the uptrend, and 271 went down.

  • Saregama India, Max Healthcare Institute, Macrotech Developers, and Gland Pharma are trading with higher volumes as compared to Thursday.

  • Tata Motors’ total commercial vehicle wholesales rise 16% YoY to 47,050 units and total domestic passenger vehicle wholesales rises 43% YoY to 42,293 units in March 2022. For FY22, the company's total commercial vehicles wholesales rise 36% YoY to 3,56,972 units and total domestic passenger vehicle wholesales rise 67% YoY to 3,70,372 units.

  • Mahindra & Mahindra’s March 2022 total auto wholesales rise 42.2% YoY to 54,643 units, while total farm equipment wholesales fall 4% YoY to 29,763 units. For FY22, the company’s total auto wholesales rise 32.1% YoY to 4,65,601 units and total farm equipment wholesales were flat YoY at 3,54,698 units.

  • Hariom Pipes' Rs 130.1-crore IPO gets bids for 1.88X of the available 85 lakh shares on offer on the third day of bidding. Retail investors put in bids for 4.66X of the available 29.75 lakh shares. The offer comprises entirely of a fresh issue of Rs 130.1 crore.

  • APL Apollo Tubes' Q4FY22 sales volume rises 27% YoY to 5,51,723 tonnes. Additionally, sales volume rises 7% YoY to 17.5 lakh tonnes for full-year FY22. Apollo structures and Apollo Z segments contribute to the rise in volumes in Q4FY22. The company looks to raise share of value added products in the overall sales mix to 75% from 63% currently in medium term.

  • Ashok Leyland’s total March 2022 wholesales rise 17% YoY to 20,123 units and total medium and heavy commercial vehicle wholesales rise 26% to 13,990 units. For FY22, the company’s total wholesales rise 27% to 1,28,326 units and total medium and heavy commercial vehicle wholesales rise 43% to 73,885 units.

  • Maruti Suzuki’s total wholesales rise 2% YoY to 1,70,395 units but total passenger vehicle wholesales fall 8.4% to 1,33,862 units in March 2022. For FY22, the company's total wholesales rise 13.4% to 16,52,653 units and total passenger vehicle wholesales rise 2.9% to 12,93,840 units. The shortage of electronic components affected the production of vehicles in FY22.

  • IOL Chemicals and Pharmaceuticals is trading with more than eight times its weekly average trading volume. Galaxy Surfactants, Suprajit Engineering, IIFL Wealth Management, and DCM Shriram Industries are trading at more than four times their weekly average trading volumes.

  • Hindustan Aeronautics records revenue growth of 6% YoY to Rs 24,000 crore in FY22. The company also receives two separate contracts worth Rs 3,887 crore to develop light combat helicopters from Ministry of Defence for Indian Air Force and Indian Army.

  • Motilal Oswal maintains a ‘BUY’ rating on ACC with a target price of Rs Rs 2,470, indicating an upside of 15%. The brokerage has a positive outlook on the company as the company’s total operating profits rose only 3% YoY in FY22 to Rs 4,552/tonne despite a significant increase in key input costs.

  • Lupin’s New Jersey manufacturing unit, Novel Laboratories receives 13 observations after the conclusion of the US Food and Drug Administration (USFDA) facility inspection. The company must now address the observations and work closely with USFDA to address its concerns.

  • Government of Singapore and Smaller Cap World Fund buy 1.08 crore and 1.64 crore shares respectively of Max Healthcare at an average price of Rs 340 apiece in a bulk deal on Thursday.

  • Escorts’ total tractor wholesales fall 18.3% YoY to 10,047 units in March 2022 on subdued commercial demand. Its domestic tractor wholesales fall 19.2% YoY to 9,483 units and tractor exports by 2.6% YoY to 591 units.

  • Future Retail’s CEO Sadashiv Nayak resigns without citing any reason for his exit. The resignation is effective from the closure of business hours on March 31, 2022.

Riding High:

Largecap and midcap gainers today include Adani Power Ltd. (203.45, 9.91%), Bharat Heavy Electricals Ltd. (53.85, 9.12%) and Bajaj Holdings & Investment Ltd. (5,398.85, 7.74%).

Downers:

Largecap and midcap losers today include Atul Ltd. (9,870.05, -4.10%), Ipca Laboratories Ltd. (1,027.40, -3.60%) and Alkem Laboratories Ltd. (3,493.20, -3.52%).

Crowd Puller Stocks

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

Top high volume gainers on BSE included IOL Chemicals and Pharmaceuticals Ltd. (424.40, 19.99%), Spandana Sphoorty Financial Ltd. (396.75, 19.54%) and Lux Industries Ltd. (2,533.15, 15.62%).

Top high volume loser on BSE was Saregama India Ltd. (4,816.20, -0.23%).

NCC Ltd. (64.95, 10.93%) was trading at 6.6 times of weekly average. DCM Shriram Ltd. (1,192.10, 5.49%) and Restaurant Brands Asia Ltd. (112.75, 11.91%) were trading with volumes 6.0 and 5.9 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

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

Stocks touching their year highs included - Adani Power Ltd. (203.45, 9.91%), Cummins India Ltd. (1,136.70, 1.37%) and Delta Corp Ltd. (333.00, 0.89%).

Stock making new 52 weeks lows included - Procter & Gamble Health Ltd. (4,166.40, 4.10%).

25 stocks climbed above their 200 day SMA including Sunteck Realty Ltd. (487.50, 11.62%) and Laxmi Organic Industries Ltd. (436.45, 9.28%). 4 stocks slipped below their 200 SMA including Alkem Laboratories Ltd. (3,493.20, -3.52%) and BASF India Ltd. (3,031.00, -2.00%).

 
Trendlyne Marketwatch
Trendlyne Marketwatch
31 Mar 2022
Market closes lower, BOB Caps maintains ‘BUY’ on Aurobindo Pharma

Trendlyne Analysis

Nifty 50 closed lower on a volatile day of trade. Most Asian indices closed lower, tracking the US indices, which closed in the red on Wednesday. European stocks trade lower on the back of a 30-year high inflation print of 7.3% in Germany and no real developments from the peace talks between Russia and Ukraine. Crude oil prices fall more than 4% as the United States mulls drawing from its oil reserves to curb the surge in fuel prices. The OPEC+ group is set to meet today to determine the output levels for oil production beginning in May.

Nifty Smallcap 100 and Nifty Midcap 100 closed in the green despite the benchmark index closing in the red. Nifty metal, which lost over 2% yesterday, closed flat. Nifty IT trades closed lower, tracking the tech-heavy NASDAQ 100, which closed 1.1% lower on Thursday.

Nifty 50 closed at 17,464.75 (-33.5, -0.2%), BSE Sensex closed at 58,568.51 (-115.5, -0.2%) while the broader Nifty 500 closed at 14,894.50 (-2.4, 0.0%)

Market breadth is in the red. Of the 1,882 stocks traded today, 771 were on the uptick, and 1,089 were down.

  • Phoenix Mills, Supreme Industries,Grindwell Norton, and Avanti Feeds are trading with higher volumes as compared to Wednesday.

  • ICICI Securities maintains a ‘Buy’ rating on Axis Bank with a target price of Rs 1,050, indicating an upside of 40%. The brokerage is bullish on the company’s acquisition of Citibank’s consumer business in India. It expects the acquisition to give the company access to a huge retail base, an affluent and profitable consumer base, and strategic synergy benefits over the medium term.

  • Reliance Industries' telecom arm Reliance Jio lost 94 lakh subscribers MoM for the second consecutive month in January 2022, according to data from the Telecom Regulatory Authority of India. On the other hand, Bharti Airtel added 7 lakh subscribers to its overall subscriber base.

  • Veranda Learnings Solutions’ Rs 200-crore IPO gets bids for 3.53X of the available 1.2 crore shares on offer on the third day of bidding. Retail investors quota gets bids for 10.76X of the available 15.4 lakh shares. The offer comprises entirely of a fresh issue of Rs 200 crore.

  • Hariom Pipes' Rs 130.1-crore IPO gets bids for 1.48X of the available 85 lakh shares on offer on the second day of bidding. Retail investors put in bids for 3.55X of the available 29.75 lakh shares. The offer comprises entirely of a fresh issue of Rs 130.1 crore.

  • BOB Capital Markets maintains a ‘BUY’ rating on Aurobindo Pharma with a target price of Rs 850, indicating an upside of 20%. The brokerage maintains a positive outlook on the company as its acquisition of Veritaz Healthcare allows the company to foray into the domestic formulation business. However, the brokerage awaits better clarity on the strategy and financial planning post-acquisition before incorporating Veritaz into their estimates.

  • Max Healthcare Institute is trading with more than sixty-nine times its weekly average trading volume.IIFL Wealth Management, Edelweiss Financial Services, ABB India and KEI Industries are trading at more than four times their weekly average trading volumes.

  • Ashoka Buildcon wins bid to develop six lanes access-controlled greenfield highway from Baswantpur to Singond from National Highways Authority of India. The accepted bid cost for the project is Rs 1,079 crore.

  • Competition commission of India conducts an enquiry in the offices of tyre makers like Apollo Tyres, Ceat and Continental AG. The enquiry is in relation to suspicion of unfair trade practices carried on by these companies in the state of Haryana.

  • IIFL Wealth Management rises as Bain Capital is set to buy 2.2 crore or 24.98% stake in the company from Fairfax India Holdings. The total consideration for this stake acquisition will be close to Rs 3,680 crore.

  • Tejas Networks is rising as it is set to acquire a 64.4% stake in semiconductor firm Saankhya Labs for Rs 283.94 crore in an all-cash deal. The company expects the acquisition to enhance its wireless offerings and increase its customer base in India and the international markets.

  • Info Edge’s wholly-owned subsidiary, Allcheckdeals India, invests Rs 137.1 crore in 4B Networks. Allcheckdeals plans to strengthen its offering in the real estate segment by providing a new platform for real estate industry professionals via the 4B network’s broker network platform.

  • Axis Bank to acquire Citibank India’s retail business for Rs 12,235 crore in an all-cash deal. The deal includes Citibank’s credit card, retail banking, wealth management, and consumer loan business. The deal also includes the sale of consumer business of its non-banking financial company (NBFC), Citicorp Finance (India).

Riding High:

Largecap and midcap gainers today include Adani Power Ltd. (185.10, 7.93%), Tata Communications Ltd. (1,228.60, 6.09%) and Hindustan Aeronautics Ltd. (1,484.90, 5.72%).

Downers:

Largecap and midcap losers today include Hindalco Industries Ltd. (569.50, -5.05%), Indian Overseas Bank (18.15, -4.22%) and Max Healthcare Institute Ltd. (347.65, -3.70%).

Movers and Shakers

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

Top high volume gainers on BSE included Edelweiss Financial Services Ltd. (58.70, 15.44%), Mahindra Lifespace Developers Ltd. (395.20, 10.86%) and Bajaj Consumer Care Ltd. (163.30, 9.08%).

Top high volume losers on BSE were CSB Bank Ltd. (211.15, -5.48%), Max Healthcare Institute Ltd. (347.65, -3.70%) and Brigade Enterprises Ltd. (516.85, -1.80%).

IIFL Wealth Management Ltd. (1,668.90, 0.01%) was trading at 10.2 times of weekly average. V Mart Retail Ltd. (3,966.30, 4.67%) and Kansai Nerolac Paints Ltd. (467.75, 3.96%) were trading with volumes 7.4 and 7.0 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

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

Stocks touching their year highs included - Adani Power Ltd. (185.10, 7.93%), Cummins India Ltd. (1,121.30, 1.22%) and Delta Corp Ltd. (330.05, 1.65%).

Stocks making new 52 weeks lows included - Avanti Feeds Ltd. (412.35, -0.87%) and Gujarat Pipavav Port Ltd. (76.40, -0.84%).

30 stocks climbed above their 200 day SMA including NOCIL Ltd. (248.90, 8.26%) and HFCL Ltd. (78.70, 7.15%). 10 stocks slipped below their 200 SMA including Max Healthcare Institute Ltd. (347.65, -3.70%) and Apollo Hospitals Enterprise Ltd. (4,516.10, -2.14%).