Blog posts

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%).

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

The Baseline

01 Apr 2022

Five Interesting Stocks Today

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.

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.

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.

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.

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

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.