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Trendlyne Marketwatch
Trendlyne Marketwatch
24 Dec 2024
Market closes flat, Akums Drugs signs Rs 1,760 crore deal to supply oral liquids in Europe
By Trendlyne Analysis

Nifty 50 closed at 23,727.65 (-25.8, -0.1%), BSE Sensex closed at 78,472.87 (-67.3, -0.1%) while the broader Nifty 500 closed at 22,402.70 (-9.6, 0.0%). Market breadth is holding steady. Of the 2,398 stocks traded today, 1,210 were on the uptick, and 1,145 were down.

Indian indices closed flat, with the benchmark Nifty 50 index closing at 23,727.7 points. The Indian volatility index, Nifty VIX, fell 2.5% and closed at 13.2 points. Akums Drugs & Pharmaceuticals signed an agreement worth approx. €200 million (Rs 1,760 crore) with a global pharma company to manufacture and supply multiple stock keeping units (SKUs) of oral liquid formulations in the European market. 

Nifty Smallcap 100 closed higher, while Nifty Midcap 100 closed flat. Nifty FMCG and Nifty Auto closed in the green. According to Trendlyne’s sector dashboard, Fertilizers emerged as the best-performing sector of the day, with a rise of 1.3%.

European indices are trading mixed. Major Asian indices closed mixed. US index futures are trading mixed, indicating a cautious start to the trading session. Stellantis announces plans to reverse the layoff of approximately 1,100 workers at its Ohio-based Jeep plant. The firm now plans to issue a worker adjustment and retraining notification notice, postponing the previously announced layoffs set for January 5.

  • Money flow index (MFI) indicates that stocks like Intellect Design Arena, Newgen Software Technologies, BLS International, and Mankind Pharma are in the overbought zone.

  • Newgen Software Technologies' wholly-owned subsidiary in Saudi Arabia accepts a purchase order worth $2.3 million (Rs 19.6 crore). The order is to be executed within a year.

  • IIFL Capital Services' subsidiary, Livlong Protection & Wellness Solutions, secures a corporate agent license from the Insurance Regulatory and Development Authority of India (IRDAI). The license allows the subsidiary to bring in insurance business for life, general, and health insurers in India.

  • Hem Securities initiates coverage on NBCC (India) with a 'Buy' call and a target price of Rs 110 per share. This indicates a potential upside of 18%. The brokerage is positive on the stock due to rising orders led by increased real estate and infrastructure activities. It expects the firm's revenue to grow at a CAGR of 23.8% over FY25-26.

  • Amber Enterprises rises over 4% as it reportedly plans to demerge its electronics division. The company will likely float an IPO of the electronics division post-demerger, as the bankers for both the demerger and IPO have been appointed.

  • Yatharth Hospital & Trauma Care Services raises Rs 625 crore through a qualified institutional placement (QIP) at Rs 595 per share, a 5% discount to the floor price, by issuing 1.1 crore shares. The QIP includes investors such as Kotak MF, SBI Life Insurance, CitiGroup, and Societe Generale.

  • Unimech Aerospace and Manufacturing's Rs 500 crore IPO receives bids for 7.4X the available 47 lakh shares on offer on the second day of bidding. The retail investor quota gets bids for 8.5X the available 23.4 lakh shares.

  • Akums Drugs & Pharmaceuticals signs an agreement with a leading global pharma company to manufacture and supply multiple stock keeping units (SKUs) of oral liquid formulations in the European market. The total value of the agreement is approximately €200 million (Rs 1,760 crore), with an upfront payment of €100 million (Rs 880 crore) for product development and regulatory site approvals.

  • Crude oil futures are rising amid strong US manufactured goods data. In addition, the latest crude oil import data from the Petroleum Planning and Analysis Cell of the Union Ministry of Petroleum and Natural Gas reveals a 2.6% increase in India's crude oil imports for November. India imported 19.1 million tonnes of crude oil in November, compared to 18.6 million tonnes during the same period last year.

  • Knowledge Marine & Engineering Works rises as its board of directors approves the stock split of one equity share with a face value of Rs 10 into two equity shares of Rs 5 each. The board also approves raising up to Rs 500 crore via equity shares, convertible debentures, and other instruments.

  • Ventura retains its 'Buy' call on Adani Energy with a higher target price of Rs 1,696 per share. This indicates a potential upside of 113.6% over the next two years. The brokerage believes the company's strong fundamentals and planned capacity expansion will help in long-term growth. It expects the firm's revenue to grow at a CAGR of 15.1% over FY25-27.

  • Bharat Petroleum Corporation is rising as its board approves the commencement of pre-project activities to establish a greenfield refinery cum petrochemical complex in East Coast at Andhra Pradesh, with an estimated cost of Rs 6,100 crore.

  • Nuvama Institutional Equities is bullish on India's defence sector for 2025, listing Bharat Electronics (BEL) and Data Patterns (India) as its top picks. The brokerage remains optimistic about the country's defence space, citing key drivers such as a major push for localisation to decrease reliance on disrupted global supply chains, as well as ongoing modernisation efforts and the acceleration of larger programmes ahead of anticipated timelines.

  • Greaves Cotton surges as its subsidiary, Greaves Electric Mobility, files a draft red herring prospectus (DRHP) with SEBI, BSE, and NSE for a Rs 1,000 crore IPO. The proposed issue includes a fresh equity issuance of up to Rs 1,000 crore and an offer for sale (OFS) of 18.9 crore equity shares.

  • Mahanagar Telephone Nigam (MTNL) is rising as its board of directors approves a voluntary retirement scheme (VRS) for employees over the age of 45 years in order to reduce employee costs.

  • MIC Electronics is rising as it receives approval for the Capacity cum Capability Assessment (CCA) for its GPS-based Public Address & Passenger Information System (PAPIS), along with LED destination boards for AC and non-AC coaches from the Competent Authority.

  • Tata stocks surge over 12% following the announcement that the group has initiated working on a Rs 15,000 crore IPO for its financial services arm, Tata Capital. This move has generated interest in Tata Chemicals, Tata Motors, and Tata Investment Corp, which hold equity stakes in Tata Capital. As a systemically important NBFC, Tata Capital adheres to RBI's "upper-layer" regulations and is slated for listing in September 2025.

  • Adani Enterprises rises as its wholly owned subsidiary, Adani Defence Systems & Technologies, signs a share purchase agreement to acquire an 85.8% stake in Air Works India for Rs 400 crore.

  • Bharat Forge is rising as its board of directors approves investing $64.5 million (~ Rs 549.3 crore) in its subsidiary, Bharat Forge America. The subsidiary will further invest $45 million (~ Rs 383.3 crore) in its arms, Bharat Forge Aluminium USA and Bharat Forge PMT Technologies.

  • Aurionpro Solutions is rising as it acquires Paris-based Fenixys in an all-cash deal worth €10 million (Rs 88.6 crore). The acquisition strengthens its banking and fintech strategy, expanding its footprint in Europe and the Middle East.

  • Satish Chander, Chief Manufacturing Officer (CMO) of Shree Cements, highlights the cement industry's shift toward sustainability in line with the global push for green energy. He adds the company met 56% of its power needs for FY24 through renewable energy, positioning it as a leader in sustainability. This shift is led by a mix of strategies, including a 480 MW energy portfolio from solar, wind, and Waste Heat Recovery (WHR) systems.

  • Websol Energy Solutions rises to its all-time high of Rs 1,855 per share as it places an order for equipment for a 600 MW cell line for the Falta plant expansion.

  • Zaggle Prepaid Ocean Services closes its Rs 595 crore qualified institutional placement (QIP) offer on Monday, approving an issue price of Rs 523.2 per share for around 1.1 crore equity shares. The issue price reflects a 5% discount to the QIP floor price.

  • PG Electroplast is rising as it partners with Whirlpool of India to manufacture select models of Whirlpool-branded semi-automatic washing machines at its Roorkee factory.

  • HG Infra Engineering is rising as it enters an agreement with NTPC Vidyut Vyapar Nigam to purchase 370 megawatt-hours (MWh) of battery energy storage.

  • Nifty 50 was trading at 23,768.25 (14.8, 0.1%), BSE Sensex was trading at 78,707.37 (167.2, 0.2%) while the broader Nifty 500 was trading at 22,417.55 (5.3, 0.0%).

  • Market breadth is in the green. Of the 1,919 stocks traded today, 1,206 showed gains, and 674 showed losses.

Riding High:

Largecap and midcap gainers today include Solar Industries India Ltd. (10,178.95, 5.1%), Biocon Ltd. (344.50, 4.5%) and InterGlobe Aviation Ltd. (4,612.25, 3.9%).

Downers:

Largecap and midcap losers today include Torrent Power Ltd. (1,502.10, -3.2%), Mankind Pharma Ltd. (2,910.60, -2.9%) and PB Fintech Ltd. (2,058.50, -2.7%).

Volume Rockets

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

Top high volume gainers on BSE included Finolex Cables Ltd. (1,230, 6.8%), Amber Enterprises India Ltd. (7,249.90, 5.0%) and Gillette India Ltd. (9,501, 4.6%).

Top high volume loser on BSE was Hatsun Agro Products Ltd. (1,008, -2.7%).

Tata Investment Corporation Ltd. (6,798.70, 4.2%) was trading at 80.0 times of weekly average. Tata Chemicals Ltd. (1,067.60, 3.2%) and Great Eastern Shipping Company Ltd. (969.55, 2.0%) were trading with volumes 7.8 and 5.0 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

3 stocks made 52 week highs, while 4 stocks tanked below their 52 week lows.

Stocks touching their year highs included - Amber Enterprises India Ltd. (7,249.90, 5.0%), Lloyds Metals & Energy Ltd. (1,189.15, 2.3%) and KFIN Technologies Ltd. (1,476.95, 4.4%).

Stocks making new 52 weeks lows included - Astral Ltd. (1,693.50, -1.6%) and Procter & Gamble Hygiene & Healthcare Ltd. (14,766.95, -0.8%).

21 stocks climbed above their 200 day SMA including Solar Industries India Ltd. (10,178.95, 5.1%) and Biocon Ltd. (344.50, 4.5%). 15 stocks slipped below their 200 SMA including Intellect Design Arena Ltd. (915.30, -4.9%) and Siemens Ltd. (6,654.90, -2.4%).

 
Trendlyne Marketwatch
Trendlyne Marketwatch
23 Dec 2024
Market closes higher, Bharat Electronics secures new orders worth Rs 973 crore
By Trendlyne Analysis

Nifty 50 closed at 23,753.45 (166.0, 0.7%), BSE Sensex closed at 78,540.17 (498.6, 0.6%) while the broader Nifty 500 closed at 22,412.30 (92.9, 0.4%). Market breadth is in the red. Of the 2,413 stocks traded today, 829 were in the positive territory and 1,547 were negative.

Indian indices closed in the green, with the benchmark Nifty 50 index closing at 23,753.5 points. The Indian volatility index, Nifty VIX, plunged 10.3% and closed at 13.5 points. Larsen & Toubro closed in the green as its precision engineering & systems division secured an order worth Rs 5,000-10,000 crore from the Ministry of Defence.

Nifty Midcap 100 closed in the green, while Nifty Smallcap 100 closed flat. Nifty Realty and Nifty Bank were among the top-performing indices of the day. According to Trendlyne’s sector dashboard, Oil & Gas emerged as the best-performing sector of the day, with a rise of 1.2%.

European indices are trading mixed. Major Asian indices closed in the green. US index futures are trading higher, indicating a positive start to the trading session, as core inflation in the US rises by 2.7%, in-line with estimates.

  • Relative strength index (RSI) indicates that stocks like General Insurance Corp of India, KFIN Technologies, Kaynes Technology, and KPR Mill are in the overbought zone.

  • Bharat Electronics is rising as it secures additional orders worth Rs 973 crore, increasing its total order book for FY25 to Rs 9,801 crore. These new orders include projects like platform screen doors for metro rail, radars, communication equipment, jammers, seekers, upgraded submarine sonar, satcom terminals, test stations, spares, and related services.

  • Eco Recycling surges to its 5% upper circuit as its board of directors approves raising Rs 500 crore through a qualified institutional placement (QIP) of equity shares.

  • Pondy Oxides & Chemicals closes its Rs 175.4 crore QIP offer on December 20, approving an issue price of Rs 860 per share for around 20.3 lakh equity shares. The issue price reflects a 4.8% discount to the QIP floor price.

  • According to data from the Telecom Regulatory Authority of India (TRAI), Vodafone Idea loses 19.3 lakh mobile subscribers on a net basis, compared to a decline of 15.5 lakh in the previous month. Reliance Jio loses 37.6 lakh subscribers in October, totaling 1.7 crore subscribers lost over the past four months. Bharti Airtel gains 5 lakh subscribers, while BSNL adds 5 lakh customers, bringing its total gains over the last four months to 68.1 lakh.

  • Jai Balaji Industries sets January 17 as the record date for its stock split of each equity share of Rs 10 each, fully paid up, into five equity shares of Rs 2 each.

  • Unimech Aerospace and Manufacturing's Rs 500 crore IPO receives bids for 2X the available 47 lakh shares on offer on the first day of bidding. The retail investor quota gets bids for 2.6X the available 23.4 lakh shares.

  • Axis Direct initiates coverage on Shriram Finance with a 'Buy' call and a target price of Rs 3,825 per share. This indicates a potential upside of 32.7%. The brokerage is positive on the stock due to an improvement in commercial vehicle market share, portfolio diversification, and steady asset quality. It expects the lender's net interest income (NII) to grow at a CAGR of 16.1% over FY25-27.

  • Bharat Global Developers hits its 5% lower circuit after SEBI suspends the stock's trading until further notice and bans its promoters from accessing the capital markets due to concerns over financial disclosures.

  • Hindustan Construction Company settles a claims dispute with a major client for Rs 180 crore.

  • Ashoka Buildcon reportedly signs a memorandum of understanding (MoU) with the Bihar Government to set up a Rs 9,000 crore green hydrogen plant in the state. The company will set up a 1,250 MW solar plant to produce green hydrogen by splitting water.

  • UPL is rising as it raises Rs 3,376 crore through a rights issue and approves the share allotment at Rs 360 per share.

  • Akshali Shah, Executive Director of Parag Milk Foods, highlights India's resilient dairy market while the FMCG sector faces sluggish growth. She attributes the sector's success to its adaptability but notes risks due to fluctuating raw milk prices. India's milk production reached 239.3 million tonnes in 2023-24, a 3.8% increase from the previous year.

  • Laurus Labs is rising as its subsidiary, Laurus Bio, receives a Rs 120 crore investment from Eight Roads Ventures and F-Prime Capital.

  • Motilal Oswal maintains its 'Buy' call on Devyani International with a target price of Rs 215 per share. This indicates a potential upside of 22.7%. The brokerage believes that despite lower demand and high inflation, the company's focus on store expansion and portfolio diversification will drive growth. It expects the firm's revenue to grow at a CAGR of 12.7% over FY25-27.

  • Larsen & Toubro is rising as its precision engineering & systems division secures an order worth Rs 5,000-10,000 crore from the Ministry of Defence, Government of India, to supply K9 Vajra-T artillery platforms to the Indian Army.

  • According to Nuvama Alternative and Quantitative Research, India's smallcap companies have accounted for a major portion of the exits by Private Equity (PE) and Venture Capital (VC) firms in 2024, with firms partially or fully divesting their stakes. During the year, 447 companies experienced insider transactions, both buying and selling, leading to net sales amounting to Rs 1.3 lakh crore. Notable stocks seeing significant selling include Five Star Finance, Aster DM Healthcare, and Honasa Consumer.

  • NTPC Green Energy rises as it signs a memorandum of understanding (MoU) with the Department of Industries, Government of Bihar, to develop solar installations, battery storage, and green hydrogen initiatives. The state will assist with necessary approvals for seamless execution.

  • Indian Oil Corp is rising as its board of directors approves setting up a 900 tonnes per day (TPD) yarn manufacturing project in Odisha through its 50:50 joint venture (JV) with MCPI. The project is estimated to cost Rs 4,382.2 crore, with Indian Oil's investment at Rs 657.3 crore.

  • Fortis Healthcare acquires a 7.6% stake in Agilus Diagnostics from International Finance Corp (IFC) for Rs 429.4 crore. This acquisition is part of the company's plans to buy a 31.5% equity in Agilus, including the remaining 23.9% from NYLIM Jacob Ballas India Fund III LLC (NJBIF) and Resurgence PE Investments.

  • HDFC Securities projects India's GDP to grow at 6.4% in 2024-25, highlighting downside risks due to a slowdown in urban demand and limited recovery in private capital expenditure. However, it believes strong rural demand and higher government spending will drive growth for the economy. The brokerage anticipates an improvement in GDP growth to 6.7% in 2025.

  • AGI Greenpac's board of directors approves raising Rs 1,500 crore by issuing shares and other securities through a rights issue, preferential issue, qualified institutional placement (QIP), or other modes.

  • Ultratech Cement receives approval from the Competition Commission of India (CCI) to acquire a 32.7% stake in The India Cements for a total consideration of Rs 3,954 crore.

  • Sterling and Wilson Renewable Energy is rising as it receives a letter of intent (LoI) for a Rs 1,200 crore solar project in Gujarat. The project includes the design, engineering, procurement, and construction (EPC) of the balance of system (BOS) for a 500 MW (AC) solar photovoltaic (PV) project, along with a three-year operations and maintenance (O&M) contract.

  • JBM Auto is rising as its subsidiary, JBM Ecolife Mobility, secures a contract worth Rs 1,800 crore from Ahmedabad Janmarg. The contract involves the procurement, operation, and maintenance of 343 electric buses for Ahmedabad Bus Rapid Transit System and Ahmedabad Municipal Transport Service.

  • Markets rise on early trading, Nifty 50 was trading at 23,755.80 (168.3, 0.7%), BSE Sensex was trading at 78,507.90 (466.3, 0.6%) while the broader Nifty 500 was trading at 22,460.05 (140.7, 0.6%).

  • Market breadth is surging up. Of the 2,012 stocks traded today, 1,525 showed gains, and 448 showed losses.

Riding High:

Largecap and midcap gainers today include Adani Wilmar Ltd. (315.85, 8.6%), Mankind Pharma Ltd. (2,998.40, 6.9%) and Torrent Power Ltd. (1,551.35, 4.9%).

Downers:

Largecap and midcap losers today include FSN E-Commerce Ventures Ltd. (160.05, -4.4%), General Insurance Corporation of India (480.55, -4.1%) and Zomato Ltd. (273.95, -2.9%).

Volume Rockets

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

Top high volume gainers on BSE included Intellect Design Arena Ltd. (962.05, 17.4%), Amber Enterprises India Ltd. (6,907.80, 12.8%) and Star Cement Ltd. (237.30, 11.5%).

Top high volume losers on BSE were Kirloskar Brothers Ltd. (2,020.95, -6.5%), Suven Pharmaceuticals Ltd. (1,130.10, -4.6%) and Shoppers Stop Ltd. (615.10, -4.5%).

India Cements Ltd. (366.25, 8.0%) was trading at 17.6 times of weekly average. Ingersoll-Rand (India) Ltd. (4,102.65, -0.8%) and Vinati Organics Ltd. (1,659.40, -3.0%) were trading with volumes 12.8 and 8.3 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

4 stocks hit their 52 week highs, while 8 stocks tanked below their 52 week lows.

Stocks touching their year highs included - Coromandel International Ltd. (1,862.70, 1.3%), 360 One Wam Ltd. (1,232.70, -1.3%) and Mankind Pharma Ltd. (2,998.40, 6.9%).

Stocks making new 52 weeks lows included - AIA Engineering Ltd. (3,325.70, -1.1%) and Berger Paints (India) Ltd. (443.60, -0.3%).

15 stocks climbed above their 200 day SMA including Intellect Design Arena Ltd. (962.05, 17.4%) and Phoenix Mills Ltd. (1,659.10, 4.3%). 33 stocks slipped below their 200 SMA including Titagarh Rail Systems Ltd. (1,257.20, -4.1%) and Bombay Burmah Trading Corporation Ltd. (2,124.80, -3.0%).

 
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The Baseline
20 Dec 2024
Five Interesting Stocks Today - December 20, 2024

1. Avenue Supermarts (DMart):

This department stores chain has declined by 7.6% over the past week, and touched a new 52-week low of Rs 3,399 on Friday. This comes after Goldman Sachs cut the target price on the stock to Rs 3,425 per share, highlighting that Avenue Supermarts’ (DMart) competitive moat is facing increasing pressure amid a rise in quick commerce players. The average target from analysts on the company according to Trendlyne’s Forecaster is Rs 4,442, so Goldman Sachs’ outlook on the business is now especially negative.

The DMart operator is known for offering the lowest prices on branded fast-moving consumer goods. However, the company has had to increase its discounting efforts to sustain its pricing advantage. In December, DMart increased its discounts to 25% over the maximum retail price to counter competitive pressures from Q-commerce players like Zepto, Zomato’s Blinkit, and Swiggy Instamart. 

Q-commerce players’ advantages are discounted pricing and 10-minute delivery. This has pressured DMart's growth in metro cities, as consumers in the region now prefer smaller, frequent purchases. Analysts believe the overlap between convenience-seeking consumers and DMart's value-focused shoppers is higher than expected, likely impacting its growth trajectory further.

During Q2FY25, Avenue Supermarts’ revenue grew by 14.4% YoY to Rs 14,444.5 crore. Net profit increased by 5.8% YoY to Rs 659.6 crore. However, revenue growth was slower compared to the previous quarters. The management highlighted that like-for-like (LFL) sales declined to 5.5% during the quarter, driven by slower growth in metro areas. Q-commerce's rising popularity has impacted these markets, which account for 47% of DMart’s revenue. Commenting on this, Neville Noronha, the CEO and MD, said, “We are clearly seeing the impact of online grocery formats on our stores and operations in metro cities”.

Goldman Sachs notes that DMart’s growth prospects are strongest in smaller cities beyond the top 10, where competition is less intense. However, its slower expansion approach may hinder its ability to be the first to market. The brokerage also lowered its earnings estimates for DMart for FY25 by 4.2% to reflect slower revenue growth. 

2. Lupin:

This pharmaceutical company rose 3% on December 19 after receiving FDA approval for its drug application for Emtricitabine and Tenofovir Alafenamide tablets. These drugs are used together to treat human immunodeficiency virus (HIV) and as a pre-exposure to reduce the risk of HIV-1 infection. The market size for these drugs was valued at $3.5 billion in 2023 and is projected to grow to $6.2 billion by 2033.

Lupin rose 5.5% in the past month following two key developments. The company acquired trademarks for three anti-diabetes brands—Gibtulio, Gibtulio Met, and Ajaduo to strengthen its diabetes portfolio in India. Additionally, Lupin received tentative approval from the US FDA for its Sitagliptin and Metformin Hydrochloride tablets. These tablets help manage blood sugar levels in adults with type 2 diabetes. It had an estimated annual sales of $1.1 billion in the US as of September 2024.

In Q2FY25, in-licence products made up 12% of Lupin’s sales, down from 15% in Q2FY24. Analysts expect that as the share of in-licensing products decreases, Lupin’s margins and profitability will improve, particularly in India. The company’s EBITDA margin stood at 19% in FY24 and increased to 23% in Q2FY25, driven by product launches like Mirabegron. CEO Vinita Gupta said, “We have achieved higher margins despite a nearly 190bps QoQ increase in our R&D spend. We expect EBITDA margins to range between 22-23% for H2FY25 and aim for a margin of 23-25% in the medium term.”

Gupta highlighted that Lupin has a pipeline of over 20 respiratory and 40 injectable products in development in the US. This is expected to push complex generics above 50% of total sales in the next few years. This signals a growing moat for Lupin, from more sales in advanced, harder-to-make medicines. Gupta is confident of achieving its FY25 double-digit revenue growth target in the US markets.

BOB Capital Markets maintains its ‘Buy’ rating on this pharma stock with a target price of Rs 2,438, suggesting a potential upside of 13.4%. The brokerage expects the proportion of in-licence sales to decrease to 10% by FY26, down from 12% in Q2FY25, with margins in the India business improving. It anticipates Lupin’s sales to grow at a 9% CAGR and net profit at 19% over FY25-27, driven by a strong product pipeline for the US market.

3. KFIN Technologies:

Thisfinancial services provider surged 15.8% over the past week following theannouncement that it has joined BlackRock’s Aladdin Provider network in a bid to make its offerings for asset managers more standardised and efficient. This collaboration will enable KFintech to offer enhanced fund administration and accounting services to clients.

If we look at the revenue mix as of Q2 FY25, around 70% of the revenue comes from the domestic mutual fund business, which is up 39.4% YoY. As of September 30, KFintech had a market share of 32.4% in India’s asset management services industry, as it serves 6 of the top 10 asset management companies.

Given the heavy reliance on Indian markets, CFO, Vivek Mathur,said, “We continue to de-risk the domestic business by expansion in the international market.” The company witnessed the highest revenue growth of 44% YoY from the services provided in the international market and other investor solutions. The firm saw an average AUM growth of 27.5% YoY in this segment. They also aim to capture 100% of the market opportunity in Thailand as there is no competition. The company has also won service contracts from funds in Malaysia and a trust in the Philippines.

Forecaster estimates revenue and net profit growth to be over 35% for Q3. The company stands to benefit from the ‘financialization’ trend of Indians moving money from savings into investments. MD & CEO, Sreekanth Nadella, expects this trend to continue to play out into the coming quarters and years.

Jefferies maintains a ‘Buy’ rating on KFintech as they believe that the firm offers a long-term opportunity. They are optimistic about the opportunities in international business as the company receives licenses to operate in the Southeast Asian markets.

4. HG Infra Engineering:

Thisconstruction & engineering company rose 3.4% on Monday after its wholly-owned subsidiary, HG Chennai-Tirupati (II) Highway Private Ltd,secured an order worth Rs 862.1 crore from the National Highways Authority of India (NHAI). The project is for building 4-lane and 6-lane highways in Andhra Pradesh.

Last week, the companyreceived a letter of acceptance (LoA) for a Rs 763.1 crore project from the Ministry of Road Transport and Highways (MoRTH). This project focuses on upgrading National Highway 227B, in Uttar Pradesh, to a two-lane road.

Despite the huge order book of Rs 16,985 crore inQ2FY25, HG Infra Engineering’s net profit declined 16% YoY to Rs 80.7 crore, due to high cost of materials. However, net profit beat Trendlyne’sForecaster estimates by 25.1%. Its revenue for the quarter also fell 5.5% YoY to Rs 902.4 crore. Regarding the fall in revenue, Harendra Singh, Chairman and Managing Director of the company said, “Progress of highway (construction) was slowed down due to erratic and good rainfall during the monsoon.” However, the management expects revenue to grow 17-18% in the upcoming quarters.

Commenting on the order book, Harendra Singhsaid, “We are targeting an order inflow of between Rs 11,000-12,000 crore for FY25.” In H1FY25, the companyreported an order inflow of Rs 6,280 crore, reflecting over 2X YoY growth, leading the order book to grow by 56% YoY. The company appears in ascreener of stocks with high analyst ratings and a potential upside of at least 20%.

Geojit BNP Paribas has a ‘Buy’ rating on HG Infra Engineering with a target price of Rs 1,791. The brokerage expects a CAGR of 16.8% in revenue, 15.7% in EBITDA, and 18.3% in net profit over FY25-27. They also expect the order book to grow at a CAGR of 31% over the same period.

5. Coromandel International:

This fertilizer company has risen by 4% in the past week. On December 17th, the company entered into a partnership with Mahindra Group’s ‘Krish-e Partner’ to provide drone spraying services for Indian farmers. Along with this, on December 5th, the company signed a strategic research agreement with the US-based International Fertilizer Development Center (IFDC) to address agricultural challenges with next-generation fertilizers, that improve nutrient efficiency and reduce environmental impact.

CRIN posted a nominal 6.6% YoY increase in revenue in Q2FY25, however it reported a 12.3% YoY decline in net profit to Rs 664.1 crore due to rise in raw material prices and lower government subsidies. The company however beat the Trendlyne Forecaster estimates for revenue by 12.7% and the net profit estimate by 2.7% due to a rise in net manufacturing volumes by 6% YoY to 1.1 MMT. It appears in a screener of stocks having strong momentum.

The company’s management highlights the improving monsoons in India, contributing towards demand appreciation of fertilizers. On this aspect, the company’s MD & CEO, S. Sankarasubramanian, said, “The monsoon has been good at 108% of the long-term period average and we have witnessed a strong Kharif season. Actually, our south markets received 114% of the normal rains. Northeast monsoon which is likely to bring rains to Rayalaseema and Coastal Andhra has started on a strong note, and we do expect a very strong Rabi season.”

The company has maintained its EBITDA per ton guidance of Rs 4,500-5,000 per ton for manufactured fertilizer (NPK and DAP) for FY25. On the guidance front, S. Sankarasubramanian adds, “Our enhanced value addition and increased intermediate capacities help us maintain margins despite significant global commodity price volatility. By boosting our captive manufacturing of phosphoric and sulfuric acid, we can absorb price shocks and subsidies. If market conditions improve, margins are expected to rise.”

Motilal Oswal has maintained its ‘Buy’ rating on CRIN with a target price of Rs 2,000. The brokerage expects the company’s fertilizer business to show strong growth with improved margins YoY in H2FY25. Additionally, the crop protection business is expected to recover and maintain growth momentum. It also adds that the Agrochemical prices have bottomed out globally and are expected to rise in the next calendar year, as Chinese suppliers won't be able to sustain the low prices for long.

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

 
Trendlyne Marketwatch
Trendlyne Marketwatch
20 Dec 2024
Market closes lower, Steel Strips Wheels secures a €15 million order from a European OEM
By Trendlyne Analysis

Nifty 50 closed at 23,587.50 (-364.2, -1.5%), BSE Sensex closed at 78,041.59 (-1176.5, -1.5%) while the broader Nifty 500 closed at 22,319.40 (-432.8, -1.9%). Market breadth is sharply down. Of the 2,388 stocks traded today, 411 showed gains, and 1,952 showed losses.

Indian indices closed in the red, with the benchmark Nifty 50 index closing at 23,587.5 points. The Indian volatility index, Nifty VIX, rose 3.9% and closed at 15.1 points. NBCC (India) won an order worth Rs 200.6 crore from Oil India to set up a new OIL hospital in Assam. The company's subsidiary, HSCC (India), also won an order worth Rs 98.2 crore from the Director of Medical Education Research (DMER).

Nifty Midcap 100 and Nifty Smallcap 100 closed in the red, following the benchmark index. BSE Realty Index and Nifty Realty were among the top index losers today. According to Trendlyne’s Sector dashboard, Hardware Technology & Equipment emerged as the worst-performing sector of the day, with a fall of 4%.

Asian indices closed lower and European indices are trading in the red with an exception of Russia’s MOEX & RTSI index. US index futures traded in the red, indicating a cautious start to the trading session. US futures extended their losses after a slight decline in Thursday evening trading, following the rejection of a spot-gap spending bill supported by President-elect Donald Trump. The bill was voted down 174-235 in the House of Representatives, increasing the likelihood of a government shutdown.

  • Money flow index (MFI) indicates that stocks like Varroc Engineering, BLS International, Persistent Systems, and Coforge are in the overbought zone.

  • GAIL (India)'s board approves forming a wholly-owned subsidiary to operate as a finance company at the International Financial Services Centre (IFSC) in Gujarat International Finance Tec-City (Gift City), Gujarat. The subsidiary will handle ship leasing and corporate treasury activities or any other approved activities.

  • Restaurant Brands Asia's board of directors approves the qualified institutional placement (QIP) of equity shares for up to Rs 500 crore.

  • Geojit BNP Paribas retains its 'Buy' call on PI Industries with a higher target price of Rs 4,480 per share. This indicates a potential upside of 16.4%. The brokerage believes the company is well positioned to capitalise on increasing demand due to its strong product pipeline, including four new brands launched in H1FY25 and sustained momentum in new enquiries. It expects the firm's revenue to grow at a CAGR of 15.9% over FY25-26.

  • Bharti Airtel makes an early payment of Rs 3,626 crore ($426.4 million) to the Department of Telecom, settling its pending spectrum fees from the 2016 auction. The company has prepaid a total of Rs 28,320 crore of spectrum liabilities in 2024.

  • Steel Strips Wheels is rising as it receives a €15 million (~Rs 132.4 crore) nomination for a steel wheel business from a leading European original equipment manufacturer (OEM). The export order is to be executed over six years, starting in late CY26.

  • Alembic Pharmaceuticals receives approval from the US FDA for its abbreviated new drug application (ANDA) for Divalproex Sodium Delayed-Release Capsules, used to treat certain types of seizures. The capsules are equivalent to AbbVie’s Depakote Sprinkle Capsules, with an estimated market size of approx. $61.1 million in the year ending September 2024, according to IQVIA.

  • NBCC (India) is rising as it bags an order worth Rs 200.6 crore from Oil India to set up a new OIL hospital in Duliajan, Assam, on a turnkey basis. The company's subsidiary, HSCC (India), also wins an order worth Rs 98.2 crore from the Director of Medical Education Research (DMER) to set up an e-library as a unified platform for 22 government medical colleges and three dental colleges.

  • Himanshu Baid, MD of Poly Medicure, reaffirms his forecast of over 20% growth in domestic revenue and 26% growth in export revenue for FY25. He projects Indian medical device exports to grow at 15-20% annually in the coming years and anticipates no significant punitive tariffs on Indian medical device exports from the US.

  • Uno Minda is rising as the National Company Law Tribunal (NCLT) approves the merger of Kosei Minda Aluminum Company, Kosei Minda Mould, and Minda Kosei Aluminum Wheel with itself.

  • Tata Power's subsidiary, Tata Power Renewable Energy (TPREL), partners with Canara Bank to promote rooftop solar systems under the PM Surya Ghar Scheme. The partnership aims to improve access to solar energy for Indian households by providing financing options.

  • Dhanlaxmi Bank is rising as its board of directors approves the rights issue of 14.2 crore shares worth Rs 297.5 crore. The board also sets the issue price at Rs 21 per share and a record date of December 27.

  • Nuvama Institutional Equities forecasts Zomato will see inflows of $513 million (Rs 4,295 crore) after joining the 30-share BSE Sensex index, effective December 23. The firm believes the exclusion of Mahindra & Mahindra, ITC, Infosys, and Sun Pharma will likely reduce their weight in the index, leading to a combined outflow of $106 million (Rs 882 crore).

  • Knowledge Marine & Engineering Works rises sharply as its board of directors approves raising funds by issuing equity shares through a private placement, qualified institutional placement (QIP), or other modes.

  • Reports suggest that 32 lakh shares (1.3% equity) of Granules India, worth Rs 191 crore, have changed hands in a block deal at an average price of Rs 596 per share. It is likely a clean-out trade by a global foreign institution, with domestic funds emerging as buyers in the transaction.

  • Amber Enterprises India is rising as 3.5 lakh shares (1% stake) worth approximately Rs 210 crore reportedly change hands in a block deal at an average price of Rs 6,075 per share.

  • Amara Raja Energy & Mobility signs an agreement with Hyundai Motor India to equip Hyundai's domestic models with AMARON’s Absorbent Glass Mat (AGM) 4-wheeler batteries. HMIL plans to feature these locally manufactured AGM batteries in its vehicles by Q4FY25, becoming the first auto OEM in India to adopt this localized AGM technology.

  • MTAR Technologies is rising as it secures new orders worth Rs 226 crore from international clients to supply various products in the Clean Energy and Aerospace sectors. These include a Rs 191 crore order from Bloom Energy and orders worth Rs 35 crore from Rafael Advanced Defence Systems, IMI Systems, and IAI.

  • BASF India rises sharply as its board of directors approves the demerger of its agricultural solutions business into a separate listed entity.

  • International Gemmological Institute’s shares debut on the bourses at a 22.3% premium to the issue price of Rs 417. The Rs 4,225 crore IPO received bids for 33.8 times the total shares on offer.

  • Jefferies initiates coverage on Sagility India with a 'Buy' rating and a target price of Rs 52. The brokerage highlights that Sagility is a leading US healthcare-focused business process management (BPM) firm with strong domain expertise, positioning it for double-digit revenue growth. It projects a 12% CAGR in revenue and a 40% PAT CAGR over FY25-27.

  • Exide Industries is rising as its subsidiary, Exide Energy Solutions (EESL), partners with Hyundai Motor India to manufacture and supply lithium-ion battery cells for its electric vehicles in India.

  • InterGlobe Aviation (IndiGo) is rising as it grants a $43 million (approx. Rs 366 crore) unsecured loan to its subsidiary, InterGlobe Aviation Financial Services IFSC (IndiGo IFSC), to procure aircraft.

  • KPI Green Energy is rising as it signs a memorandum of understanding (MoU) with the Government of Rajasthan to develop hybrid solar and wind power projects in Jaisalmer (Ramgarh), Rajasthan. The company sets January 3 as the record date for issuing bonus shares.

  • GE Vernova T&D India rises to its all-time high of Rs 2,158 per share as it bags an order worth Rs 400 crore from Sterlite Grid 32. As per the order, GE Vernova will supply and supervise high-voltage (HV) equipment for an undisclosed tariff-based competitive bidding project over the next two years.

  • Nifty 50 was trading at 23,909.05 (-42.7, -0.2%), BSE Sensex was trading at 79,335.48 (117.4, 0.2%) while the broader Nifty 500 was trading at 22,758.20 (6.1, 0.0%).

  • Market breadth is surging up. Of the 1,918 stocks traded today, 1,399 were gainers and 472 were losers.

Riding High:

Largecap and midcap gainers today include General Insurance Corporation of India (501, 13.2%), Dr. Reddy's Laboratories Ltd. (1,343.65, 1.4%) and Honeywell Automation India Ltd. (41,199.90, 0.8%).

Downers:

Largecap and midcap losers today include Siemens Ltd. (6,868.90, -10%), Torrent Power Ltd. (1,479.20, -9.4%) and LTIMindtree Ltd. (5,824.30, -6.4%).

Volume Rockets

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

Top high volume gainers on BSE included General Insurance Corporation of India (501, 13.2%), Aegis Logistics Ltd. (825.80, 9.3%) and Network18 Media & Investments Ltd. (74.34, 5.9%).

Top high volume losers on BSE were Siemens Ltd. (6,868.90, -10%), Torrent Power Ltd. (1,479.20, -9.4%) and RBL Bank Ltd. (152.79, -7.0%).

Go Digit General Insurance Ltd. (341.85, 3.2%) was trading at 17.9 times of weekly average. JSW Steel Ltd. (917.35, -0.9%) and Pfizer Ltd. (4,669.95, -6.8%) were trading with volumes 16.3 and 11.6 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

9 stocks took off, crossing 52 week highs, while 17 stocks tanked below their 52 week lows.

Stocks touching their year highs included - Crisil Ltd. (5,566, -4.1%), KPR Mill Ltd. (1,139, -0.6%) and Muthoot Finance Ltd. (2,075.65, -2.9%).

Stocks making new 52 weeks lows included - IndusInd Bank Ltd. (929.45, -3.6%) and Nestle India Ltd. (2,163.50, 0.1%).

13 stocks climbed above their 200 day SMA including BASF India Ltd. (5,713.65, 4.6%) and Dr. Reddy's Laboratories Ltd. (1,343.65, 1.4%). 36 stocks slipped below their 200 SMA including Torrent Power Ltd. (1,479.20, -9.4%) and Pfizer Ltd. (4,669.95, -6.8%).

 
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The Baseline
20 Dec 2024
Five trends that will make 2025 very different from 2024 | Screener: Sector outperformers of 2024

We are cursed with short attention spans, so we tend to prioritize the most recent events. Social media and smartphones have made this attention problem even worse - as I am constantly reminded, when I return from the grocery store with everything except the item I went there for. 

Investors have been pretty downbeat recently about the stock market's performance, so it took a glance at the Nifty50's share price history to give me some perspective on what the year was actually like. The index had a pretty strong first half in 2024, compared to the previous years. The trendline changed sharply only in October, when the decline shook up portfolios and the investor mood. 

What about 2025? 2024 has sometimes felt like a holding pattern, with elections in the India and the US, wars without end, and inflation keeping consumers quiet. Early signals suggest that 2025 will be different. 

In this week's Analyticks:

  • Five trends that will make 2025 unlike 2024
  • Screener: Stocks that outperformed their sectors over the past year

1) What happens in the US will not stay in the US - especially under Trump

President-elect Donald Trump is a noisemaker who writes messages in ALL CAPS, throws threats at countries ("100% tariffs!") and nominates messy, troubling characters to key administrative roles, like conspiracy-theorist Kash Patel to the FBI and vaccine-opponent Robert F Kennedy to be the Health Secretary. Trump has also signalled a broad change in US international policy, with his  focus on"America First".

One of the things Trump promised this week was "reciprocal tariffs" on US trading partners: “If they tax us, we tax them the same amount." This has big implications for India, since US is India's second-biggest trading partner, and many American goods face high import duties in India.  India's average tariffs have risen from 5% in 2014 to 17% now, which is higher than other Asian countries that trade with the US.

Overall, Biden has been better than Trump for India's trade with the US. So this relationship may get shaky if Trump follows through on his trade threats.

2. Oil will be cheaper in 2025 - maybe by a lot

A big, once-in-decades change is happening in the oil market: the OPEC cartel's power is dwindling, with its market share falling fast. “There is more fear about 2025's oil prices than there has been since years - any year I can remember, since the Arab Spring,” one oil analyst noted. OPEC countries are set to raise their pumping targets gradually in 2025, bringing more oil to the market. But 90% of the increase in oil supplies in 2025 are set to come from non-OPEC countries like US, Brazil and Canada, limiting OPEC's pricing power. 

The oil surplus could hit 1.6 million barrels per day by the second half of 2025, bringing prices lower, especially if demand from China, the main oil consumer, stays weak.

Brent futures point to a continued downward trend in oil prices, and some analysts are especially pessimistic - Citi analysts expect Brent price to average $60 per barrel next year, while others predict $40 per barrel. 

3. Not so green: Coal will come out of the shadows in 2025

There is much talk these days about the green economy: increasing renewables is non-negotiable to bring down emissions. But coal, the dirtiest fuel, is not going anywhere and may even hit record highs in 2025, thanks in part due to India.

Despite countries like the UK banning coal entirely, coal demand was at a record in 2024, according to the International Energy Agency, and is still growing. 

India is expected to consume more coal than the European Union and the US combined in 2025.  But the main driver of coal consumption is China, which consumes 30% more coal than the rest of the world put together. It will take until 2027 for India's power generation from renewables to have real impact.

4. The consumer story will be back in the headlines in 2025

2024 was an especially difficult year for the Indian consumer, with high inflation and high interest rates depressing spending, and the overall consumer mood. From FMCG to paints to consumer durables, CEOs noticed "a muted response" across Indian consumer markets. Another worrying signal was slow growth in the average salary bill at India's listed companies in the September quarter. 

2025 however is expected to see a recovery, with inflation trending downward, as food prices come down from recent highs. If inflation stays within RBI's target range, interest cuts should come as early as February 2025.

S&P Global predicts healthy growth in Indian consumption spending, with spending on goods, already at $1.29 trillion, set to ramp up steadily.

5. 2025 will be a volatile year

The Nifty Vix is going to see some upheaval. Analysts across the board are predicting volatilty thanks to rising geopolitical risks: a trade war is a possibility between the US and China, and a change in government is likely in Canada, Germany and Australia. There has also been a swing to the political right globally, and that is coming with deregulation across industries. Cooling inflation could also drive rate cuts across the board. 

Overall, the momentum looks for now, to be in India's favour. China is in the crosshairs, giving India an opportunity in global markets. Oil prices are trending lower, more good news for us, an oil importer.

But there are as always, unpredictables  - another regional crisis could flare up (say China-Taiwan), US-India relations could worsen, a bad monsoon could trigger more inflation. 

Changes are afoot. As that double-edged promise goes: it is going to be an interesting year.

Screener: Relative Outperformance versus sector over one year

General Industrials & Consumer Durables stocks rise the most in the past year

As we near the end of 2024, we take a look at the top-performing stocks over the past year relative to their sector. This screener shows Nifty 500 stocks whose share price over one year rose faster than its sector. 

The screener is dominated by stocks from the banking & finance, automobiles & auto components, food, beverages & tobacco, realty, and pharmaceuticals & biotechnology sectors. The most notable stocks in the screener are Jyoti CNC Automation, GE Vernova T&D India, Motilal Oswal Financial Services, Dixon Technologies (India), Oracle Financial Services Software, Godfrey Phillips India, Kaynes Technology India, and Anant Raj. 

Jyoti CNC Automation shows up in the screener after rising by 333.8% over the past year, outperforming the general industrials sector by 157.5 percentage points. This industrial machinery stock was listed on the exchange on January 16, 2024, and is the best-performing IPO during the year. Its stock price surged on the back of its revenue and net profit growing YoY in Q1 and Q2 of FY25. In Q2FY25, the company’s revenue grew by 45.6% YoY to Rs 441.7 crore. Its net profit increased by 348.2% YoY to Rs 75.9 crore, driven by a reduction in inventory and employee benefits expenses.

Motilal Oswal Financial Services also appears in the screener after rising 225.5% over the past year, outperforming the banking & finance sector by 201 percentage points in the same period. This capital markets stock’s price surged on the back of strong results. Its revenue and net profit have grown YoY for the past six consecutive quarters. The company also issued three bonus shares for every share owned by the shareholders on June 10, helping the stock price surge 10.6% during the month. 

You can find some popular screeners here.

 
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The Baseline
19 Dec 2024
Five stocks to buy from analysts this week - December 19, 2024
By Divyansh Pokharna

1. Triveni Engineering & Industries:

Sharekhan maintains a ‘Buy’ rating on this sugar stock with a target price of Rs 582. This indicates an upside of 23.3%. Triveni Engineering & Industries (TEIL) has approved a composite scheme involving the merger of Sir Shadi Lal Enterprises (SSEL) with itself. Following this, the gear and defence business, Triveni Power Transmission (TPT), will be demerged and listed as a separate entity. Analysts believe that this restructuring will enhance shareholder value in the long run.

Both TEIL and SSEL are involved in the production of sugar and alcohol/ethanol. The proposed merger aims to consolidate all sugar, ethanol, and alcohol operations into one entity. 

The demerged power transmission business represents 4.8% of TEIL’s total turnover. As of September 2024, the business had an order book of Rs 345 crore. The management is focusing on R&D to improve efficiency and meet global standards. They expect higher order bookings from the defense segment in the coming years.

Analysts are forecasting strong growth in the distillery business due to expanded capacity. They believe that higher minimum selling prices (MSPs) and rising international sugar prices will keep sugar realizations stable, leading to an improved EBITDA margin from 12% in FY24 to 12.5% by FY27.

2. Max Healthcare Institute:

Axis Direct initiates its ‘Buy’ rating on this healthcare facilities firm with a target price of Rs 1,315, indicating an upside of 10.2%. Max Healthcare is a leader in the Delhi-NCR and Mumbai regions, operating over 2,900 beds and holding a strong presence in oncology. Its oncology segment is valued at Rs 1,400 crore and holds nearly 20% market share. The company also has the highest average revenue per occupied bed (ARPOB) of Rs 76,000 and an occupancy rate of 75% compared to its peers.

Max Healthcare plans to add 3,000 beds to its network over the next three years, representing 70% of its current capacity. The company has already invested Rs 1,700 crore for capex. Analysts Ankush Mahajan and Aman Goyal estimate an additional investment of Rs 5,000 crore for this expansion and believe the company’s cash flow will be sufficient to cover the costs.

The company’s EBITDA has grown from Rs 332 crore in FY21 to Rs 1,806 crore in FY24, with the EBITDA margin increasing from 9.2% to 26.5%. Mahajan and Goyal write, “We expect the margins to remain stable in the range of 27-28%, as the new beds from brownfield expansions will take time to become operationally profitable.”

3. ICICI Bank:

Motilal Oswal maintains its ‘Buy’ rating on this bank with a target price of Rs 1,550, indicating a potential upside of 14.1%. ICICI Bank achieved a deposit growth of ~20% YoY in FY24, supported by its digital banking and extensive branch network. Analysts Nitin Aggarwal, Dixit Sankharva, and Disha Singhal highlight the bank’s focus on profitable growth, backed by a retail deposit-driven balance sheet. Despite competition on deposit rates, it manages rates to handle outflows, keeping its credit-deposit (CD) ratio at ~85%.

ICICI Bank has a comfortable current CD ratio and is focusing on monitoring its liquidity coverage ratio (LCR). Analysts highlight that the bank is working to maintain a healthy balance between giving out loans and attracting deposits in tough market conditions. They also see a strong potential for growth in fee income, particularly through transaction banking. Additionally, ICICI is reportedly exploring opportunities to expand its NRI segment.

Analysts Aggarwal, Dixit, and Singhal note that ICICI Bank is expected to maintain healthy loan growth, stable asset quality, and competitive return ratios. Margins may face short-term pressure due to potential rate cuts and rising funding costs. However, strong deposit inflows and a low CD ratio support its growth prospects.

4. Shriram Pistons & Rings:

Emkay maintains its ‘Buy’ rating on this industrial machinery manufacturer with a target price of Rs 2,950. This indicates an upside potential of 36.6%. Shriram Pistons & Rings’ (SPRL) subsidiary, SPR Engenious, has entered into an agreement to acquire a 100% stake in TGPEL Precision Engineering for Rs 220 crore. This acquisition will enable the company to expand its product portfolio beyond internal combustion engine (ICE) powertrains, and is expected to be completed by December 2024.

The analysts Chirag Jain, Jaimin Desai, Nandan Pradhan, and Omkar Rane note that TGPEL manufactures high-precision injection molds with two facilities in Uttar Pradesh. It  has presence in both automotive and non-automotive segments (Electrical, Consumer Goods, Medical), with clients that includes Denso, Continental, Motherson, Havells, Polycab, Dabur, Gilette, etc. The acquisition strengthens SPRL’s diversification strategy into non-engine parts, following its previous acquisition of Takahata Precision India in February 2023.

Jain, Desai, Pradhan, and Rane believe the acquisition, though small (around 4% of SPRL sales), is important strategically and represents another step in diversifying away from engine parts. They expect revenue to grow 10% in FY25 and 12% in FY26.

5. Apeejay Surrendra Park Hotels:

IDBI Capital initiates a ’Buy’ rating on this small cap hotel company with a target price of Rs 245, indicating an upside potential of 31.1%. The company operates 34 hotels with 2,410 rooms across metros and emerging cities under five brands and has plans to expand to 61 hotels in over 45 cities, totaling 5,048 rooms by FY29.

Analyst Archana Gude highlights that ASPHL outperformed the industry with a 92% occupancy rate in FY24, significantly higher than the industry average of 70%. Its retail food and beverage brand, Flurys, has expanded from 19 outlets in FY17 to 95 as of H1 FY25, with plans to reach 120 by FY25 and add 40 stores annually. This asset-light and scalable business model is expected to improve ASPHL’s growth potential and overall business prospects.

Gude expects ASPHL’s net sales to grow at 11% annually from FY25 to FY27, driven by 8% growth in the hospitality segment and 32% in Flurys. EBITDA is projected to grow at 11% per year from FY24 to FY27, while profit after tax is expected to rise by 26% annually during the same period.

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

(You can find all analyst picks here)

 
Trendlyne Marketwatch
Trendlyne Marketwatch
19 Dec 2024
Market closes lower, FDC gets US FDA approval for its ANDA for Cefixime tablets
By Trendlyne Analysis

Nifty 50 closed at 23,951.70 (-247.2, -1.0%), BSE Sensex closed at 79,218.05 (-964.2, -1.2%) while the broader Nifty 500 closed at 22,752.15 (-182.3, -0.8%). Market breadth is in the red. Of the 2,392 stocks traded today, 926 were in the positive territory and 1,432 were negative.

Indian indices closed in the red, with the benchmark Nifty 50 index closing at 23,951.7 points. This follows the US Federal Reserve's decision to cut interest rates by 25 basis points and signal a slower pace of rate cuts in the coming year. The Indian volatility index, Nifty VIX, rose 1% and closed at 14.5 points. Lupin surged as it received US FDA approval for its abbreviated new drug application (ANDA) for Emtricitabine and Tenofovir Alafenamide tablets.

Nifty Smallcap 100 and Nifty Midcap 100 closed in the red, taking cues from the benchmark index. S&P BSE Dollex 30 and Nifty IT Index were among the top index losers today. According to Trendlyne’s sector dashboard, Hardware Technology & Equipment emerged as the worst-performing sector of the day, with a fall of 2.8%.

Asian indices closed in the red, except for Malaysia’s KLCI which closed flat and Sri Lanka’s CSE All-share index which closed higher. European indices are trading mixed. US index futures are trading in the green, indicating a positive start to the trading session. Brent crude oil futures are trading lower.

  • LTIMindtree sees a short buildup in its December 26 futures series, with open interest increasing by 22.7% and a put-call ratio of 0.9.

  • FDC receives US FDA approval for its abbreviated new drug application (ANDA) for Cefixime 400 mg tablets. The tablets, used to treat bacterial infections, have a market size of $1.2 billion.

  • Interarch Building Products is rising as it enters a partnership with Jindal Steel & Power to utilise steel for the construction of multi-story buildings, data centres, and heavy structures.

  • Nomura India Investment acquires 3 crore shares of Vishal Mega Mart worth Rs 325 crore through a bulk deal. The transaction was executed at an average price of Rs 108.3 per share.

  • Bangladesh's interim government accuses Adani Power of violating a multi-billion-dollar agreement by withholding tax benefits granted by New Delhi to a power plant central to the deal. In 2017, the company signed an agreement with Bangladesh to supply power from its coal-fired plant in eastern India. However, the company denies any wrongdoing in the agreement.

  • Dolphin Offshore Enterprises (India)'s CEO, Krishan Gopal, tenders his resignation, effective December 17, for personal and professional reasons.

  • Infosys inaugurates a new development centre in Kolkata, built with an investment of Rs 426 crore. The facility supports over 4,000 employees and operates on a hybrid working model.

  • ICICI Securities retains its 'Buy' call on Awfis Space Solutions with a higher target price of Rs 1,049 per share. This indicates a potential upside of 43.3%. The brokerage remains positive on the stock due to its strategy for expansion through asset-light mergers & acquisitions, along with a combination of service-level (SL) contracts. It expects the firm's revenue to grow at a CAGR of 30.2% over FY25-27.

  • JPMorgan initiates coverage on Swiggy with a 'Buy' rating and a target price of Rs 730. The brokerage anticipates the company will make gains in both food delivery and quick commerce segments, driven by renewed focus and better execution. It views Swiggy as an "underestimated leader" in India's local service ecosystem.

  • Stove Kraft rises to its 52-week high of Rs 975 as it partners with IKEA to develop a cookware range set to launch through IKEA’s global store network in 2026. This partnership expands Stove Kraft's global footprint and strengthens its presence in international markets.

  • Zydus Lifesciences receives US FDA approval to produce Lidocaine and Prilocaine Cream USP, a topical anesthetic used as local analgesia and pretreatment for minor surgeries. The product has an annual sales of $22.1 million in the US as of October 2024.

  • Borosil Renewables is falling as its board of directors cancels the proposed Rs 450 crore rights issue and approves raising Rs 100 crore through a preferential issue of shares to its promoters at an issue price of Rs 530 per share. The board also approves setting up two 250 tonnes per day (TPD) furnaces with a capex of Rs 675 crore.

  • The Nifty IT index partly recovers from a 2.4% drop but trades lower, with LTIMindtree, Wipro, and L&T Technology Services down 2-4%. Kranthi Bathini, Equity Market Strategist at WealthMills, highlights that the disappointment stemmed from the US Federal Reserve's dot plot, which projected interest rate cuts of 50 basis points for 2025, lower than anticipated. Higher US interest rates mean increased bond yields and a stronger dollar, raising IT service costs for US clients and potentially reducing demand.

  • Gandhar Oil Refinery (India) is falling as it receives an establishment inspection report (EIR) with a voluntary action indicated (VAI) status from the US FDA for its manufacturing facility in Taloja, Maharashtra.

  • Yatharth Hospital & Trauma Care Services is rising as its board of directors approves raising funds through a qualified institutional placement (QIP) of shares at a floor price of Rs 626.2 per share.

  • DOMS Industries falls sharply as 27.9 lakh shares (4.6% stake), worth Rs 808 crore, reportedly change hands in a block deal at an average price of Rs 2,899 per share. Italian stationery maker FILA is the likely seller in the transaction.

  • SpiceJet rises over 7% after it reaches an amicable settlement with commercial aircraft leasing firm Genesis, resolving their $16 million (Rs 133 crore) dispute. As part of the settlement, Genesis will receive $6 million (Rs 50 crore) from SpiceJet and acquire $4 million (Rs 33 crore) worth of SpiceJet equity at Rs 100 per share.

  • Ipca Laboratories' promoter, Usha Madhukar Chandurkar, sells 40 lakh shares (1.6% stake) worth Rs 600.6 crore at an average price of Rs 1,501.5 per share in a block deal on Thursday.

  • JSW Infrastructure's subsidiary, JSW Tuticorin Multipurpose Terminal, avails a Rs 500 crore long-term loan from ICICI Bank and Canara Bank. The company will utilise the loan amount to develop North Cargo Berth-III (NCB-III)-Zone A and handle dry bulk cargo at VO Chidambaranar Port, with a capacity of 7 million tonnes per annum (MTPA).

  • Inventurus Knowledge Solutions’ shares debut on the bourses at a 43% premium to the issue price of Rs 1,329. The Rs 2,497.9 crore IPO received bids for 52.7 times the total shares on offer.

  • Nomura upgrades Dr. Reddy's Laboratories to 'Buy' with a target price of Rs 1,500. The brokerage believes the stock's underperformance concerns due to Revlimid's high contribution are already priced in. It highlights the company’s growth in H1FY25 was driven by initiatives such as biosimilar trials and believes increased investments in manufacturing infrastructure will support future growth.

  • Zaggle Prepaid Ocean Services' board of directors approves raising Rs 950 crore through a qualified institutional placement (QIP) of shares at a floor price of Rs 550.7 per share. The company bags an order from Narayana Hrudayalaya to provide employee expense management through Zaggle Save.

  • IOL Chemicals and Pharmaceuticals is rising as its board of directors schedules a meeting on December 27 to consider the declaration of sub-division / split of equity shares.

  • Lupin is rising as it receives US FDA approval for its abbreviated new drug application (ANDA) for Emtricitabine and Tenofovir Alafenamide tablets. The tablets are a generic equivalent of Gilead Sciences' Descovy tablets used in the treatment of HIV.

  • The Department of Financial Services, Ministry of Finance, appoints Rama Mohan Rao Amara as the Managing Director (MD) of State Bank of India.

  • Markets fell in early trading. Nifty 50 was trading at 23,919.55 (-279.3, -1.2%), BSE Sensex was trading at 79,410.24 (-772.0, -1.0%) while the broader Nifty 500 was trading at 22,630.75 (-303.7, -1.3%).

  • Market breadth is sharply down. Of the 1,972 stocks traded today, 158 showed gains, and 1,795 showed losses.

Riding High:

Largecap and midcap gainers today include Ipca Laboratories Ltd. (1,594.95, 5.4%), Dr. Reddy's Laboratories Ltd. (1,325.60, 3.9%) and Oracle Financial Services Software Ltd. (12,830.40, 3.7%).

Downers:

Largecap and midcap losers today include LTIMindtree Ltd. (6,220.60, -5.4%), Cummins India Ltd. (3,357.65, -4.8%) and ABB India Ltd. (7,351.90, -4.0%).

Volume Shockers

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

Top high volume gainers on BSE included Chennai Petroleum Corporation Ltd. (606.20, 5.5%), Dr. Reddy's Laboratories Ltd. (1,325.60, 3.9%) and Oracle Financial Services Software Ltd. (12,830.40, 3.7%).

Top high volume losers on BSE were Vaibhav Global Ltd. (302.90, -5.6%), V-Guard Industries Ltd. (428.05, -3.3%) and NLC India Ltd. (244.75, -0.2%).

Honeywell Automation India Ltd. (40,996.25, 3.0%) was trading at 5.4 times of weekly average. Kaynes Technology India Ltd. (7,242.75, 2.0%) and India Cements Ltd. (340.45, 0.1%) were trading with volumes 3.9 and 3.9 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

8 stocks hit their 52 week highs, while 13 stocks were underachievers and hit their 52 week lows.

Stocks touching their year highs included - Indian Hotels Company Ltd. (880.05, -0.2%), Muthoot Finance Ltd. (2,136.85, 1.1%) and Coforge Ltd. (9,657.10, 2.0%).

Stocks making new 52 weeks lows included - Asian Paints Ltd. (2,291.85, -2.3%) and IndusInd Bank Ltd. (964.40, -0.1%).

8 stocks climbed above their 200 day SMA including Home First Finance Company India Ltd. (1,031.75, 2.7%) and Indigo Paints Ltd. (1,447, 0.9%). 31 stocks slipped below their 200 SMA including ABB India Ltd. (7,351.90, -4.0%) and Tata Teleservices (Maharashtra) Ltd. (80.73, -2.6%).

 
Trendlyne Marketwatch
Trendlyne Marketwatch
18 Dec 2024
Market closes lower, Inox Wind bags a 60 MW order from Serentica Renewables
By Trendlyne Analysis

Nifty 50 closed at 24,198.85 (-137.2, -0.6%), BSE Sensex closed at 80,182.20 (-502.3, -0.6%) while the broader Nifty 500 closed at 22,934.40 (-161.4, -0.7%). Market breadth is sharply down. Of the 2,395 stocks traded today, 683 showed gains, and 1,680 showed losses.

Indian indices closed in the red, with the benchmark Nifty 50 index closing at 24,198.9 points. The Indian volatility index, Nifty VIX, fell 0.8% and closed at 14.4 points. Ambuja Cements' board of directors approved the merger of its subsidiaries, Sanghi Industries, and Penna Cement Industries, with itself.

Nifty Midcap 100 and Nifty Smallcap 100 closed lower, tracking the benchmark index. Nifty Media and BSE PSU Index were among the worst-performing indices of the day. According to Trendlyne’s sector dashboard, Retailing emerged as the best-performing sector of the day, with a rise of 3.5%.

European indices are trading in the green. Major Asian indices closed mixed. US index futures are trading higher, indicating a positive start to the trading session in anticipation of a 25 bps interest rate cut by the Federal Reserve later in the day.

  • Relative strength index (RSI) indicates that stocks like Coforge, Lemon Tree Hotels, Dixon Technologies (India), and Indian Hotels are in the overbought zone.

  • Supriya Lifesciences rises sharply as it inaugurates a new active pharmaceutical ingredients (API) production block at Lote Parshuram, Maharashtra. The company invests Rs 125 crore in the facility, boosting capacity by 55% and increasing production from 597 kilo litres per day (KLPD) to 932 KLPD.

  • KFIN Technologies is rising as it joins BlackRock’s Aladdin Provider network. The partnership aims to standardise and improve KFintech’s operating model, enhancing efficiency for asset managers.

  • Poonawalla Fincorp falls sharply as its board of directors approves doubling the borrowing capacity to Rs 50,000 crore from Rs 25,000 crore.

  • The All India Consumer Products Distributors Federation (AICPDF) urges the GST council to reexamine the proposed 35% GST rate hike on aerated beverages. The industry body suggests that such an increase could push manufacturers to cut costs, squeezing the margins of distributors and retailers and impacting their incomes and livelihoods.

  • Shriram Finance raises $1.3 billion in multiple currencies, including USD, EUR, and AED, through an external commercial borrowing (ECB) loan. The deal, involving 12 banks, including the International Finance Corporation (IFC), features tenors of up to five years.

  • Inox Wind secures a 60 MW order from Serentica Renewables to supply 3 MW class wind turbines in H1CY25. The turbines will be installed at Serentica’s hybrid renewable energy project in Karnataka.

  • Aditya Birla Real Estate's subsidiary, Birla Estates, acquires a 70.9-acre land parcel in Biosar, Mumbai, for Rs 104.3 crore.

  • NMDC declines over 6% following reports that Karnataka is considering a proposal to increase iron ore duties, aiming to generate Rs 10,000 crore in revenue. This move is expected to boost state revenues but raises cost concerns for miners like NMDC. The Karnataka government has reportedly introduced a bill to tax mines and mining land, with a proposed levy ranging from Rs 20 to Rs 100 per tonne on different minerals.

  • J Kumar Infraprojects secures a Rs 632 crore contract from NBCC (India) to develop Delhi Transport Corp's (DTC) Hari Nagar colony. The project is scheduled for completion in 27 months.

  • Shoppers Stop is rising as 44 lakh shares (4% stake), worth approximately Rs 276 crore, reportedly change hands in a block deal at an average price of Rs 628 per share. Amazon.com NV is likely the seller in the transaction.

  • Dynamatic Technologies signs a contract with Aequs to procure over 200 complex structural parts for the Airbus A220 Door Program over the next five years.

  • Prithviraj Kothari, President of the India Bullion & Jewellers Association (IBJA), highlights that India's gold imports surged last month due to strong demand for investment and jewellery. He believes the situation is cooling, with imports expected to decline by over 50% in December. In November, gold imports more than doubled compared to the previous month, reaching a record $14.8 billion (Rs 1.2 lakh crore), leading to a record trade deficit of $19.8 billion (Rs 1.6 lakh crore).

  • Ambuja Cements' board of directors approves the merger of its subsidiaries, Sanghi Industries, and Penna Cement Industries, with itself. Sanghi Industries' shareholders will receive 12 shares of Ambuja Cements for every 100 shares held in the company, while Penna Cement's shareholders will receive Rs 321.5 per share.

  • VA Tech Wabag plunges as it announces the cancellation of its $317 million (~ Rs 2,700 crore) order for a 300 MLD mega seawater desalination plant in Saudi Arabia.

  • Restaurant Brands Asia's board of directors schedules a meeting on Friday to consider raising funds by issuing equity shares through a preferential issue, qualified institutional placement (QIP), or other modes.

  • Manoj Verma, COO of Bikaji Foods International, highlights the company has already passed on a 2-3% cost to customers and plans to implement an additional 2-3% hike by the end of December. He notes this price increase will impact the company's bottom line by 1% and projects a margin of around 12% for Q3FY25. Verma adds the company aims to achieve steady volume growth of 13-15%.

  • One MobiKwik Systems’ shares debut on the bourses at a 57.7% premium to the issue price of Rs 279. The Rs 572 crore IPO received bids for 119.4 times the total shares on offer.

  • Sai Life Sciences’ shares debut on the bourses at an 18.4% premium to the issue price of Rs 549. The Rs 3,042.6 crore IPO received bids for 10.3 times the total shares on offer.

  • Vishal Mega Mart’s shares debut on the bourses at a 33.3% premium to the issue price of Rs 78. The Rs 8,000 crore IPO received bids for 27.3 times the total shares on offer.

  • Tarun Arora, the Whole Time Director & CEO of Zydus Wellness, highlights the company's target to achieve revenue growth in the mid-teens over the coming quarters. He anticipates margins of around 17-18% over the next 2-3 years, despite investing 13-14% of the revenue on advertising. Arora adds that Zydus Wellness plans to expand its distribution by adding 1 million outlets over the next 2-3 years.

  • The Reserve Bank of India (RBI) lifts restrictions on Edelweiss Financial Services' subsidiaries, ECL Finance and Edelweiss Asset Reconstruction, after the companies undertook measures to address the RBI concerns.

  • Gensol Engineering is rising as it secures a solar project worth Rs 88 crore from a leading steel products company in Punjab. The project involves developing a 22 MW ground-mounted solar photovoltaic power plant and will be executed within six months.

  • Pondy Oxides & Chemicals is rising as its board of directors approves raising funds through a qualified institutional placement (QIP) of shares at a floor price of Rs 902.9 per share.

  • Aurobindo Pharma's wholly-owned subsidiary, Apitoria Pharma, receives two observations from the US FDA following an inspection at its API manufacturing facility in Telangana.

  • Nifty 50 was trading at 24,329.55 (-6.5, 0.0%), BSE Sensex was trading at 80,666.26 (-18.2, 0.0%) while the broader Nifty 500 was trading at 23,072.05 (-23.7, -0.1%)

  • Market breadth is in the red. Of the 1,952 stocks traded today, 771 were on the uptick, and 1,141 were down.

Riding High:

Largecap and midcap gainers today include Mankind Pharma Ltd. (2,805.95, 5.4%), Indraprastha Gas Ltd. (398.40, 4.5%) and GlaxoSmithKline Pharmaceuticals Ltd. (2,332.55, 3.0%).

Downers:

Largecap and midcap losers today include NMDC Ltd. (213.63, -6.1%), Federal Bank Ltd. (200.03, -4.9%) and Mazagon Dock Shipbuilders Ltd. (5,100.70, -4.0%).

Volume Shockers

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

Top high volume gainers on BSE included Craftsman Automation Ltd. (5,663.70, 11.1%), Akzo Nobel India Ltd. (3,743.90, 8.0%) and Bharti Hexacom Ltd. (1,545.85, 6.6%).

Top high volume losers on BSE were Deepak Fertilisers & Petrochemicals Corporation Ltd. (1,201.50, -6.6%), Piramal Enterprises Ltd. (1,147.65, -6.3%) and NMDC Ltd. (213.63, -6.1%).

Ipca Laboratories Ltd. (1,513.20, -2.9%) was trading at 11.7 times of weekly average. EID Parry (India) Ltd. (972.30, 4.9%) and Radico Khaitan Ltd. (2,553.20, 4.0%) were trading with volumes 11.5 and 11.0 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

13 stocks made 52 week highs, while 9 stocks were underachievers and hit their 52 week lows.

Stocks touching their year highs included - Coromandel International Ltd. (1,833.75, 0.9%), EID Parry (India) Ltd. (972.30, 4.9%) and Indian Hotels Company Ltd. (881.40, 0.2%).

Stocks making new 52 weeks lows included - Asian Paints Ltd. (2,345.45, -0.5%) and IndusInd Bank Ltd. (965.20, -1.1%).

12 stocks climbed above their 200 day SMA including Clean Science & Technology Ltd. (1,471.15, 3.4%) and Tata Teleservices (Maharashtra) Ltd. (82.87, 2.5%). 18 stocks slipped below their 200 SMA including PVR INOX Ltd. (1,408.45, -5.8%) and NLC India Ltd. (245.25, -3.5%).

 
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The Baseline
17 Dec 2024
By Aditi Priya

India’s IPO market has witnessed remarkable growth in 2024, with an impressive surge in both the number of listings and the capital raised. India has overtaken China in the world’s largest investable stock benchmark. India’s share of the free float in the MSCI All-Country World Index has risen to 2.3%, exceeding China’s 2.1%.

Angel One Wealth highlighted that while the global IPO market peaked in 2021, India has stood out over the past year with strong public listings, thanks to significant demand, domestic inflows, and the outperformance of sectors like utilities, automobiles and consumer durables. BSE IPO Index, with a 33.1% YoY gain, has significantly outperformed the benchmark BSE 500 Index, which gained 19.9%. 

As of December 17, 319 companies have collectively raised Rs 1.6 trillion through SME and mainboard IPOs. This figure has already surpassed the 238 IPOs recorded in 2023. In terms of funds raised, 2024 reflects an 184% increase compared to 2023, during which Rs 578.9 billion was raised. The total number of mainboard IPOs this year stands at 79, with more additions expected by the year-end. 

This week’s chart of the week highlights the best-performing IPOs of 2024. It also explores which sectors saw the highest number of mainboard IPOs and which investor group is driving the IPO boom in India. 

Consumer durables sector leads with top-performing IPOs

Out of the 79 mainboard companies listed so far, 57 are trading above their issue price, with an average current gain of 44.6%. Companies such as KRN Heat Exchanger & Refrigeration, Platinum Industries, Bharti Hexacom, Orient Technologies, and Diffusion Engineers have seen their stock prices more than double since listing.

On the other hand, companies like Hyundai Motor, ACME Solar Holdings, Capital Small Finance Bank, and Ceigall have been trading below their issue prices. Notably, Hyundai Motor, the largest IPO in India’s history, raised Rs 27,870 crore but debuted 7% below its issue price.

The average listing gain of mainboard IPOs stands at 26.8%, slightly below 2023's average of 28%. The metals and mining sector recorded the highest average listing gain at 71.7%, while the cement and construction sector recorded the lowest, of 10.6%.

When looking at valuations, five out of the top 10 performing companies are overvalued compared to their sector P/E. These companies include Jyoti CNC Automation, KRN Heat Exchanger, Premier Energies, Enviro Infra Engineers, and EPACK Durables. On the other hand, companies like Platinum Industries, Bharti Hexacom, Gala Precision, Orient Technologies, and Diffusion Engineers are undervalued relative to their sector P/E.

The best-performing mainboard IPO of the year is Jyoti CNC from the general industrials sector. The company specializes in manufacturing and supplying computer numerical control (CNC) machines. The company’s client base includes ISRO, Bharat Forge, Bosch Limited, and others across aerospace, automotive, and industrial sectors. Since its listing on January 16, the company's stock has surged over 333% due to a robust order book and strong H1FY25 results. The IPO, with an issue size of Rs 1,000 crore, was priced at Rs 331 per share, listed at a 31.2% premium. The company, with a P/E of 104.2, is trading significantly above the sector average P/E of 67.8, indicating that it is overvalued by approximately 53.7% compared to its sector. 

Interestingly, three companies (Premier Energies, Waaree Energies and EPack Durables)  in the top 10 IPOs have delivered the highest returns since their listing, are from the consumer durables sector. These companies benefitted from policies like ‘Make in India’, industry diversification, investments in new technologies, and increasing global demand for industrial products. Premier Energies debuted with an 86.6% premium, while Waaree Energies listed with a 55.6% premium.

EPack Durables was listed at a 9.4% discount on January 30 but has since gained over 110% from its issue price. The company specializes in manufacturing a variety of domestic appliances, including room air conditioners, induction stoves, mixer grinders, water dispensers, and components. With a P/E ratio of 97.4, it is currently trading well above the sector average of 71.9.

The banking and finance sector recorded the highest number of mainboard IPOs (9) in 2024, followed by the diversified consumer services sector. A total of nine companies from the banking and finance sector launched IPOs, including Bajaj Housing Finance, Aadhar Housing Finance, Manba Finance, Go Digit General Insurance, and Northern Arc Capital. 

The sector's IPOs showed mixed performance, with companies like Bajaj Housing Finance, Aadhar Housing Finance, and Manba Finance delivering positive returns, while others like Northern Arc Capital, Jana Small Finance Bank, and Akme Fintrade posted negative returns. The average listing gain for this sector’s IPOs is 22.2%, while the average current gain is 15.9%.

In the diversified consumer services sector, companies such as Awfis Space Solutions, TBO Tek, Medi Assist Healthcare Services, Stanley Lifestyles, Entero Healthcare Solutions, GPT Healthcare, Suraksha Diagnostic, and LE Travenues Technology posted an average listing gain of 21.8%, with current gains reaching 39.1%. Entero Healthcare, the largest IPO in the diversified consumer services sector with an issue size of Rs 1600 crore, listed at an 8.6% discount. However, the company has since gained 16.6%. With a P/E of 89.5, which is higher than the sector’s P/E of 72, the company is overvalued by 24.3%.

Institutional plays: QIBs fuel the IPO boom with the highest subscription rates in 2024

The IPO boom in India this year was primarily driven by qualified institutional buyers (QIBs) with a median subscription rate of nearly 61 times, with the highest subscription in KRN Heat, which delivered the second-highest returns. KRN Heat was subscribed 253x by QIBs, 431.6x by HNIs, and 98x by retail investors, leading to an overall oversubscription of 214.4x.

High net-worth individuals (HNIs) have a median subscription rate of nearly 48x. The metal and mining sector saw the highest subscription rates, with an average of 142x. Vibhor Steel Tubes, in particular, saw high demand, with HNIs subscribing 721.3x, qualified institutional buyers (QIBs) subscribing 178.7x, and retail investors subscribing 188.2x, resulting in a total subscription of 298.9x, the highest among all IPOs. 

Retail investors have a median subscription rate of 13.6x, with the highest demand seen in BLS E-Services. This IPO was subscribed 237 times by retail investors, 300 times by HNIs, and 123 times by QIBs.

 
Trendlyne Marketwatch
Trendlyne Marketwatch
17 Dec 2024
Market closes lower, NMDC's sets December 27 as the record date for its 2:1 bonus issue
By Trendlyne Analysis

Nifty 50 closed at 24,336 (-332.3, -1.4%) , BSE Sensex closed at 80,684.45 (-1,064.1, -1.3%) while the broader Nifty 500 closed at 23,095.75 (-256.7, -1.1%). Market breadth is in the red. Of the 2,396 stocks traded today, 796 were in the positive territory and 1,565 were negative.

Indian indices closed in the red, with the benchmark Nifty 50 index closing at 24,336 points. The Indian volatility index, Nifty VIX, rose 3.3% and closed at 14.5 points. Coromandel International hit an all-time high of Rs 1,855 after partnering with Mahindra & Mahindra’s farm equipment business, Krish-e, to extend its drone spraying services, Gromor Drive, to farmers across India.

Nifty Midcap 100 and Nifty Smallcap 100 closed lower. Nifty Consumer Durables and Nifty PSU Bank closed in the red. According to Trendlyne’s sector dashboard, Hardware Technology & Equipment emerged as the best-performing sector of the day, with a rise of 3.1%.

European indices are trading mixed. Major Asian indices closed mixed. US index futures are trading lower, indicating a negative start to the trading session ahead of the Federal Reserve's final policy meeting of the year. McCormick & Co is reportedly in talks to acquire Duke’s mayo maker, Sauer Brands, from Falfurrias Capital Partners in a deal worth approximately $1 billion.

  • Money flow index (MFI) indicates that stocks like Swan Energy, Dixon Technologies, Varroc Engineering, and Godawari Power are in the overbought zone.

  • Nazara Technologies' arm, Paper Boats App, signs a licensing agreement with Moonbug Entertainment, granting Kiddopia rights to integrate Moonbug's popular property, Little Angel. This partnership aims to develop interactive activities and games to boost engagement and learning for children aged 2-7 years.

  • NMDC's board of directors sets December 27 as the record date for its 2:1 bonus share issue. The shareholders will get two new fully paid equity shares of Rs 1 each for every existing equity share of ?Rs 1 each.

  • Genesys International Corp is rising as it secures a Rs 56 crore project from the Directorate of Land Records and Surveys (DLRS), West Bengal. The project aims to modernise the state's land records through advanced geospatial technology, improving accuracy and efficiency in land administration.

  • Nuvama Alternative & Quantitative Research expects Bharti Hexacom and Go Digit General Insurance to enter the FTSE index, effective December 23. Among the largest inflows, major BFSI players are expected to take the lead, with ICICI Bank,Kotak Mahindra Bank, and Bajaj Finance seeing inflows of $310 million (?Rs 2,560 crore), $118 million (?Rs 978 crore), and $66 million (?Rs 540 crore), respectively.

  • Tata Motors secures an order for 1,297 bus chassis from Uttar Pradesh State Road Transport Corporation (UPSRTC). This marks UPSRTC's third order in the past year, bringing the total orders with the company to over 3,500 units.

  • Geojit BNP Paribas upgrades Bharat Forge to 'Buy' from 'Hold' but lowers the target price to Rs 1,558 per share. This indicates a potential upside of 15.2%. The brokerage believes the defence stock will continue to grow its domestic and international operations driven by a diverse product mix. It expects the firm's revenue to grow at a CAGR of 17.4% over FY25-27.

  • Coromandel International hits a new all-time high of Rs 1,855 as it partners with Mahindra & Mahindra’s Farm Equipment Sector (FES) business vertical, Krish-e, to extend its drone spraying services, Gromor Drive, to farmers across India.

  • ITC sets January 1, 2025, as the effective date for the demerger of its hotel business. ITC will retain 40% ownership in ITC Hotels, with the remaining 60% distributed to shareholders in proportion to their holdings in ITC. Eligible shareholders will receive one ITC Hotels share for every 10 ITC shares held.

  • TARC plunges to its 10% lower circuit after SEBI appoints a forensic auditor to examine its financials from FY21-23, citing concerns over disclosures potentially harmful to investors and securities markets.

  • Axis Direct initiates coverage on Oberoi Realty with a 'Buy' call and a target price of Rs 2,560 per share. This indicates a potential upside of 10.1%. The brokerage is positive on the stock due to its strong position in the Mumbai Metropolitan Region (MMR), growth in annuity, entry into new markets, and low debt with strong cashflows. It expects the firm's revenue to grow at a CAGR of 17.8% over FY25-27.

  • Oriana Power is rising as it signs a memorandum of understanding (MoU) with the Government of Rajasthan under the Rising Rajasthan 2024 initiative. The agreement focuses on exploring renewable energy investment opportunities, including solar power, floating solar, green hydrogen, and energy storage solutions, with a potential value of Rs 10,000 crore.

  • Jairam Paravastu Sampath, the Whole Time Director & CFO of Kaynes Technology India, reaffirms his revenue guidance of Rs 3,000 crore for FY25. He anticipates smart metre revenues will reach Rs 1,000 crore by FY26. Sampath also highlights that the high-density PC board & fabrication projects will benefit from the government’s new electronic component manufacturing scheme, set to launch in April 2025.

  • Mankind Pharma launches a QIP to raise up to Rs 3,000 crore at an issue price of Rs 2,616.5 per share. The funds will reportedly be used for the partial repayment of debt incurred from the acquisition of Bharat Serums and Vaccines (BSV).

  • Mindspace Business Parks REIT is falling as 5.4 crore shares (9.2% stake), worth approximately Rs 1,903 crore, reportedly change hands in a block deal. Abu Dhabi Investment Authority (ADIA) is likely the seller in the transaction.

  • Hindustan Construction's board of directors approves raising Rs 1,000 crore through a qualified institutional placement (QIP) of shares at a floor price of Rs 45.3 per share.

  • Jefferies notes that IndiGo and Air India are increasing the number of international flights, positively impacting domestic load factors and yields. The brokerage reiterates its 'Buy' rating on IndiGo with a target price of Rs 5,225, highlighting the airline's plans to have 40 aircraft by the end of 2025, with business class service operating on 12 domestic routes, marking a major move towards attracting premium travellers.

  • RailTel Corp of India is rising as it secures a work order worth Rs 38 crore from Central Warehousing Corp to supply, install, test, and commission (SITC) CCTV systems.

  • PNB Gilts is falling sharply as its Managing Director (MD) & Chief Executive Officer (CEO) Vikas Goel tenders his resignation, effective December 23.

  • Wipro is set to acquire 100% ownership in Applied Value Technologies and its subsidiaries, Applied Value Technologies B.V. and Applied Value Technologies Pte., for up to $40 million (approximately Rs 340 crore). This acquisition strengthens Wipro's presence in enterprise applications and IT services.

  • Quess Corp rises sharply as Antique Broking initiates coverage with a ‘Buy’ rating and a target price of Rs 1,000. The brokerage believes the company’s growth momentum will continue as it is set to benefit from strong hiring trends across industries. It sees double-digit growth in banking, manufacturing, and consumer sectors amid rapid urbanisation in India and robust growth of global capability centres (GCCs).

  • Gravita India is rising sharply as its board of directors approves raising Rs 750 crore through a qualified institutional placement (QIP) of equity shares at a floor price of Rs 2,206.5 per share.

  • Texmaco Rail & Engineering rises sharply as it bags an order worth Rs 187.4 crore from Chhattisgarh State Power Transmission Co (CSPTCL) to supply nine 132 KV transmission lines.

  • Rail Vikas Nigam is rising as it secures a contract worth Rs 270 crore from Maharashtra Metro Rail Corp to construct elevated metro stations under NMRP Phase-2. The project involves building 10 elevated metro stations in Maharashtra, including key locations like Hingna, Rajiv Nagar, and Wanadongri.

  • Hindustan Petroleum Corp is rising as its board of directors approves the lube modernisation and bottoms upgradation project at its Mumbai refinery with a capex of Rs 4,679 crore. This project will increase the production of lube oil base stocks (LOBS)to 764 kilotonnes per annum (KTPA) from 475 KTPA and will grow the bitumen production by 487 KTPA.

  • Nifty 50 was trading at 24,590.55 (-77.7, -0.3%), BSE Sensex was trading at 81,521.85 (-226.7, -0.3%) while the broader Nifty 500 was trading at 23,324.80 (-27.7, -0.1%).

  • Market breadth is in the green. Of the 1,973 stocks traded today, 1,202 were gainers and 733 were losers.

Riding High:

Largecap and midcap gainers today include Mazagon Dock Shipbuilders Ltd. (5,311.25, 5.6%), Suzlon Energy Ltd. (69.56, 4.8%) and United Spirits Ltd. (1,563.30, 2.9%).

Downers:

Largecap and midcap losers today include Shriram Finance Ltd. (2,976.90, -5.1%), Oil India Ltd. (444.80, -3.6%) and Pidilite Industries Ltd. (3,081.35, -3.5%).

Movers and Shakers

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

Top high volume gainers on BSE included Jyoti CNC Automation Ltd. (1,435.90, 10.9%), Quess Corp Ltd. (719.65, 7.4%) and Mazagon Dock Shipbuilders Ltd. (5,311.25, 5.6%).

Top high volume losers on BSE were Bandhan Bank Ltd. (163.87, -3.5%), Zydus Wellness Ltd. (1,992, -2.6%) and Chambal Fertilisers & Chemicals Ltd. (529.60, -0.4%).

CSB Bank Ltd. (318.20, 3.7%) was trading at 10.3 times of weekly average. Piramal Pharma Ltd. (260.60, 3.7%) and Rashtriya Chemicals & Fertilizers Ltd. (184.58, 4.6%) were trading with volumes 8.0 and 7.3 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

15 stocks overperformed with 52 week highs, while 4 stocks were underachievers and hit their 52 week lows.

Stocks touching their year highs included - Caplin Point Laboratories Ltd. (2,440, 0.8%), Coromandel International Ltd. (1,817.15, -0.1%) and Indian Hotels Company Ltd. (880.05, 1.4%).

Stocks making new 52 weeks lows included - Asian Paints Ltd. (2,356, -1.9%) and Tata Consumer Products Ltd. (904.90, -1.7%).

10 stocks climbed above their 200 day SMA including Five-Star Business Finance Ltd. (742.75, 5.4%) and Devyani International Ltd. (171.01, 3.4%). 18 stocks slipped below their 200 SMA including Bayer Cropscience Ltd. (6,023.25, -3.1%) and Sunteck Realty Ltd. (505.40, -2.9%).