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Trendlyne Marketwatch
Trendlyne Marketwatch
30 Dec 2024
Market closes lower, Reliance Ind's arm acquires healthcare platform Karkinos for Rs 375 crore
By Trendlyne Analysis

Nifty 50 closed at 23,644.90 (-168.5, -0.7%) , BSE Sensex closed at 78,248.13 (-450.9, -0.6%) while the broader Nifty 500 closed at 22,357.15 (-88.1, -0.4%). Market breadth is highly negative. Of the 2,438 stocks traded today, 771 were in the positive territory and 1,628 were negative.

Indian indices closed in the red, with the benchmark Nifty 50 index closing at 23,644.9 points. The Indian volatility index, Nifty VIX, rose 5.6% and closed at 13.9 points. The Government of India waived off financial bank guarantees for spectrum acquired by telecom players in previous years. The waiver will apply to guarantees from 2012, 2014, 2015, 2016, and 2021.

Nifty Smallcap 100 closed in the red, while Nifty Midcap 100 closed in the green. Nifty Midcap Select and Nifty MidSmall Healthcare were among the top index gainers today. According to Trendlyne’s Sector dashboard, Healthcare Equipment & Supplies emerged as the best-performing sector of the day, with a rise of 5.6%.

Asian indices closed lower, while European indices are trading mixed. US index futures traded in the red, indicating a cautious start to the trading session. Brent crude oil futures are trading in the red. Goldman Sachs forecasts that the Federal Reserve will implement a 25 basis point interest rate cut in March 2025, followed by two more cuts of the same size in June and September.

  • Money flow index (MFI) indicates that stocks like Five-Star Business Finance, Dr. Reddy's Laboratories, Devyani International, and PTC Industries are in the overbought zone.

  • The Income Tax Appellate Tribunal (ITAT) disposes of a penalty order worth Rs 172.8 crore against Suzlon Energy. The company received an order from the Office of the National Faceless Assessment Centre, Income Tax Department, for FY15-16 and FY16-17 in March 2024.

  • Reliance Industries' wholly-owned subsidiary, Reliance Strategic Business Ventures (RSBVL), acquires oncology-focused healthcare platform Karkinos for Rs 375 crore.

  • Vakrangee is rising as it partners with Shriram Life Insurance to offer comprehensive life insurance products through its Vakrangee Kendra network nationwide.

  • Ventura initiates a 'Buy' rating on Adani Enterprises with a target price of Rs 3,801. The brokerage notes that AEL aims to invest Rs 6.5-7 lakh crore in capex over the next decade for expansion into airports, data centers, copper, and green H2. It also raised Rs 4,200 crore in Q2FY25 through a QIP, with strong participation from both domestic and international investors, and Rs 800 crore via its first public NCD issuance.

  • Gujarat Fluorochemicals falls sharply following a gas leak incident at its CMS-1 plant in Dahej, Gujarat. The mishap has resulted in the loss of four lives, including one employee and three contractual workers.

  • Deep Industries' board of directors approves raising funds worth up to Rs 350 crore through a qualified institutional placement (QIP) of equity shares.

  • Utkarsh Small Finance Bank is rising as it sells its written-off loans portfolio and non-performing assets (NPAs) worth Rs 355 crore to an asset reconstruction company (ARC) for Rs 52 crore.

  • Cigniti Technologies' board of directors approves its merger with and into Coforge. Following the merger, Cigniti shareholders will receive one equity share of Coforge for every five shares they hold in the company.

  • Universal Autofoundry declines after Ashish Kacholia sells a 2.5% stake (3.1 lakh shares) in the company through a bulk deal. The transaction was executed at an average price of Rs 98 per share.

  • Prestige Estates Projects enters a business transfer agreement (BTA) to transfer its three hospitality business undertakings to its wholly-owned subsidiary, Prestige Hospitality Ventures, for Rs 313 crore.

  • Aether Industries is rising as it commissions a 15 MW solar power project. The project, developed under the Captive Power Producer (CPP) model, was executed by KPIG Energia, a subsidiary of KPI Green Energy.

  • Anil Gupta, Chairman & Managing Director of KEI Industries, highlights that the company is undergoing massive capex. He mentions that Phase 1 of their Sanand project is expected to be commissioned in June 2025, with full completion by March 2026. The Sanand project will lead to a 65-70% increase in capital expenditure, factoring in additional investments. He also reiterates the 15-17% revenue growth guidance and EBITDA margin guidance of 10.5-11% for FY25.

  • NAVA’s board sets January 20 as the record date for its stock split, dividing one equity share of face value of Rs 2 each fully paid up into two equity shares of Rs 1 each.

  • KEC International enters a business transfer agreement (BTA) to transfer its cables business through a slump sale to its subsidiary, KEC Asian Cables, in a transaction valued at Rs 125 crore.

  • Vodafone Idea is rising as the Government of India waives financial bank guarantees for spectrum acquired in previous years. The waiver applies to guarantees from 2012, 2014, 2015, 2016, and 2021. The company owed Rs 24,800 crore for each spectrum.

  • A BankBazaar report indicates a surge in India's gold loans by 56% YoY in 2024, surpassing the 18% growth in home loans. George Alexander Muthoot, Managing Director of Muthoot Finance, highlights that gold loans promote financial inclusion, providing credit access to individuals without a credit history. The company reported consolidated loan assets under management of Rs 1 lakh crore in 2024.

  • Senores Pharmaceuticals’ shares debut on the bourses at a 53.5% premium to the issue price of Rs 391. The Rs 582.1 crore IPO received bids for 93.4 times the total shares on offer.

  • Carraro India’s shares debut on the bourses at a 7.5% discount to the issue price of Rs 704. The Rs 1,250 crore IPO received bids for 1.1 times the total shares on offer.

  • Ventive Hospitality’s shares debut on the bourses at an 11.4% premium to the issue price of Rs 643. The Rs 1,600 crore IPO received bids for 9.8 times the total shares on offer.

  • Sharekhan maintains a 'Buy' rating on HDFC Bank and revises its target price to Rs 2,100. The brokerage notes the bank is preparing for a transition and finds the risk-reward profile of the stock appealing. It also highlights the bank is focused on increasing retail deposit mobilization while partially reducing its loan portfolio, as it aims to lower its loan-to-deposit ratio (LDR) more quickly to a normalized level of 85-87%.

  • Shakti Pumps (India) is rising as its board of directors schedules a meeting for January 7 to consider a proposal to raise funds via a qualified institutional placement (QIP) of equity shares.

  • IOL Chemicals and Pharmaceuticals is rising as its board of directors approves the stock split of one equity share with a face value of Rs 10, fully paid up, into five equity shares of Rs 2 each.

  • JSW Energy is rising as its wholly-owned subsidiary, JSW Neo Energy, signs an agreement to acquire O2 Power, a renewable energy platform with a capacity of 4,696 MW, at an enterprise value of Rs 12,468 crore.

  • Hero MotoCorp extends its partnership with Harley-Davidson Motor to introduce new variants of the Harley-Davidson X440 and develop a new motorcycle.

  • Nifty 50 was trading at 23,802 (-11.4, -0.1%) , BSE Sensex was trading at 78,637.58 (-61.5, -0.1%) while the broader Nifty 500 was trading at 22,434.65 (-10.6, -0.1%)

  • Market breadth is in the red. Of the 2,011 stocks traded today, 923 were on the uptick, and 1,023 were down.

Riding High:

Largecap and midcap gainers today include Bajaj Holdings & Investment Ltd. (12,630.80, 11.8%), Indian Renewable Energy Development Agency Ltd. (218.47, 10.9%) and Adani Total Gas Ltd. (751.15, 10.6%).

Downers:

Largecap and midcap losers today include Thermax Ltd. (3,913.10, -10.8%), Jindal Stainless Ltd. (686.90, -6.7%) and Solar Industries India Ltd. (9,527.35, -6.4%).

Movers and Shakers

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

Top high volume gainers on BSE included ITI Ltd. (379.20, 15.5%), AstraZeneca Pharma India Ltd. (7,337.20, 15.4%) and Bajaj Holdings & Investment Ltd. (12,630.80, 11.8%).

Top high volume losers on BSE were Thermax Ltd. (3,913.10, -10.8%), Balaji Amines Ltd. (1,743.95, -10.3%) and Redington Ltd. (187.93, -7.2%).

Happiest Minds Technologies Ltd. (749.70, 7.0%) was trading at 36.8 times of weekly average. Cera Sanitaryware Ltd. (7,684.95, 6.8%) and CreditAccess Grameen Ltd. (909.25, 8.3%) were trading with volumes 22.3 and 15.9 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

15 stocks hit their 52 week highs, while 11 stocks tanked below their 52 week lows.

Stocks touching their year highs included - Bajaj Holdings & Investment Ltd. (12,630.80, 11.8%), Coromandel International Ltd. (1,868.95, 1.2%) and Crisil Ltd. (5,992.45, 7.3%).

Stocks making new 52 weeks lows included - Astral Ltd. (1,660.70, 0.4%) and Berger Paints (India) Ltd. (447, 1.1%).

15 stocks climbed above their 200 day SMA including AstraZeneca Pharma India Ltd. (7,337.20, 15.4%) and Indian Renewable Energy Development Agency Ltd. (218.47, 10.9%). 28 stocks slipped below their 200 SMA including Godfrey Phillips India Ltd. (4,819.70, -8.5%) and Jindal Stainless Ltd. (686.90, -6.7%).

 
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The Baseline
27 Dec 2024
Five Interesting Stocks Today - December 27, 2024
By Trendlyne Analysis

1. InterGlobe Aviation:

This airlines company has risen by 5.6% over the past week, and gained around 64.5% from its 52-week low of Rs 2,847. This comes after Elara Securities upgraded its rating to ‘Buy’ from ‘Sell’ and raised the target price to Rs 5,309, while highlighting that the company will be a key beneficiary of the growth in India's aviation sector. The average target from analysts on the company according to Trendlyne’s Forecaster is Rs 4,913. 

IndiGo carried 90.7 lakh passengers during November, with its market share increasing to a dominant 63.6%, according to data from the Directorate General of Civil Aviation (DGCA). The company targets to fly around 11.2 crore passengers in 2024, surpassing its previous record of over 10 crore last year. India's air travel industry is witnessing rapid growth, driven by rising domestic and international passenger traffic. In the January to November 2024 period, Indian airline companies carried 14.6 crore passengers, a 5.9% YoY growth. 

To meet the growing demand in India’s air travel market, IndiGo is exploring advancing its aircraft rental agreements to February. In April, the company announced an order for 30 wide-body Airbus A350-900 aircraft, with deliveries starting in 2027, and 69 A321XLR aircraft expected in 2025. However, the company stated that it won’t wait until 2027 to introduce these planes. Commenting on this, Pieter Elbers, the CEO said, “To meet the rising demand for international and domestic travel to and from India and considering global supply chain challenges, IndiGo is exploring interim solutions for an earlier induction of long-range aircraft”.

India’s aviation space is projected to grow at a 12% CAGR from FY25-28, driven by capacity expansion and new infrastructure, including new airports in Delhi and Mumbai by April 2025 and terminal upgrades in Bengaluru, Chennai, and Ahmedabad. Elara Securities believes IndiGo is well-positioned to benefit from these tailwinds. According to Trendlyne’s Forecaster estimates, the airline’s revenue is expected to grow by 28.5% YoY in Q3FY25. 

2. Dr. Reddy's Laboratories:

Thispharmaceuticals company surged 3.9% on December 19 after Nomuraupgraded Dr. Reddy's Laboratories’ rating to ‘Buy’ from ‘Neutral.’ The brokerage set a target price of Rs 1,500 per share based on the company’s growth potential and investments in emerging markets and key therapeutic areas.

On November 28, the companylaunched Toripalimab, the first and only approved drug in India for nasopharyngeal carcinoma, a rare throat cancer. This drug, marketed under the brand name Zytorvi, works alongside chemotherapy to enhance the immune system's ability to fight the disease. This treatment is only available in a few countries, including India.

InQ2FY25 the company reported a revenue growth of 15.6% YoY to Rs 8,345.7 crore, driven by a 17.2% increase in sales from the pharmaceutical services & active ingredients segment, and a 16.3% rise in the global generics segment. However, net profit declined 15.3% YoY to Rs 1,255.7 crore during the quarter, due to the acquisition of Haleon’s global portfolio of consumer healthcare brands in Nicotine Replacement Therapy.

Dr. Reddy's has significantly increased its investments in manufacturing infrastructure, with capital expenditure (capex) expected toexceed Rs 2,500 crore in FY25. This is more than double the average annual capex of Rs 1,100 crore over the past five years. The increase is primarily for API capacity expansion, particularly for peptide products, including weight loss GLP-1 drugs. CFO M V Narasimhan,said, “We are developing a robust pipeline of small molecules, biosimilars and novel oncology assets, through internal and collaborative efforts, to drive future growth.”

Nomura believes the company is focusing on wellness and unique products, reducing its reliance on traditional therapies that currently make up 41% of sales. This shift is expected to strengthen its product range and improve its position in the market.

3. UPL:

This agrochemicals company has fallen by over 3% in the past week. On December 20th, the company raised Rs 3,376 crore through a rights issue at a price of Rs 360 per share. On December 1st, the company completed the transfer of its Specialty Chemical business by way of a slump sale to its wholly-owned subsidiary, Superform Chemistries.

UPL had posted a nominal 9% YoY increase in revenue for Q2FY25. However, its net loss rose to Rs 443 crore due to a jump in net debt and pricing pressure. Trendlyne Forecaster estimates the company’s revenue to rise by 38% in Q3FY25. Meanwhile, analysts from Sharekhan highlight rising food grain production, favorable regulatory reforms for farmers, and significant opportunities from off-patent products as positives for the company. It appears in a screener of stocks with the highest FII stock holdings.

The outlook however, is mixed – company’s management anticipates a slowdown in volume growth during the second half of the year, with expected growth in the mid-single digits, down from 18% in H1. Anand Vohra, CFO of the company, notes, “We continue to maintain our revenue guidance of 4-8% for FY25, driven by an increase in our differentiated product sales and recovery in the US market.” Commenting on the overall agrochemical space, the company’s CEO, Mike Frank, says, “Price pressure continues to weigh on the overall market, partly due to overcapacity issues in China and tight grower margins, specifically in global row crops. However, we continue to perform well in maintaining and growing our market share in most regions.”

Sharekhan has maintained its ‘Hold’ rating on UPL with a target price of Rs 584. The brokerage observes that high channel inventory and pricing pressures, coupled with increasing Chinese supply, will pose growth challenges for both global and domestic agrochemical companies. It anticipates that the demand recovery for the company is expected to be gradual in North America, Europe, and Brazil, with a quicker rebound in Asia. Given these industry challenges, the brokerage anticipates that earnings concerns for UPL will continue in the near term, with a recovery expected in FY25.

4. Akums Drugs & Pharmaceuticals:

This pharma company, which went public in August 2024, gained 19.2% last week after signing a long-term agreement with a leading global pharmaceutical firm to manufacture and supply oral liquid formulations for the European market. The total deal is valued at approximately €200 million (Rs 1,760 crore), including an upfront payment of €100 million (Rs 880 crore) for product development and site approval.

Akums is set to begin the commercial supply of these products in 2027, continuing through 2032. The company also plans to seek European approvals for its oral liquid site, which it aims to utilize for manufacturing these products.

Akums Drugs reported mixed Q2FY25 results, with a 105% YoY increase in net profit to Rs 65.2 crore, despite an 11.9% YoY decline in revenue due to muted volume demand and lower active pharmaceutical ingredient (API) prices. The company operates in three main segments - contract development and manufacturing operations (CDMO), active pharmaceutical ingredients (API), and branded and generic formulations. CDMO led the performance, contributing 79% of Q2 revenue, followed by branded and generic formulations at 16%, and API accounting for 5%.

On November 19, Akums also announced that it had signed an exclusive Master Sales Agreement with Caregen Ltd., a South Korean company in the nutraceuticals segment. Under the agreement, Akums obtained exclusive rights to market specific Caregen products in India.

Sandeep Jain, Managing Director of Akums stated, “Looking ahead, we anticipate demand trends in the second half to remain largely similar to the first half. There is potential for upside if API prices improve and industry volumes pick up, but that remains uncertain.” He believes that either in Q3 or Q4, API prices to at least average out or normalize, which should positively impact their revenue cycle.

5. Bharat Petroleum Corp:

This oil exploration and production company rose 1% on December 24 following two developments. Bharat Petroleum Corp (BPCL) initiated pre-project activities for a greenfield refinery and petrochemical complex on the East Coast of Andhra Pradesh, with an estimated cost of Rs 6,100 crore. The refinery reportedly could have a capacity of at least 9 million tonnes (180,000 barrels per day).

On the same day, the company also won NTPC’s 1200 MW solar tender as the lowest bidder, securing 150 MW in capacity. The project, valued at Rs 756.5 crore, will be developed over two years and is expected to generate annual revenue of ~Rs 100 crore by producing 400 million clean energy units.

On December 2, BPCL signed a memorandum of understanding (MoU) with Coal India to explore a coal-to-synthetic natural gas project at Western Coalfields (WCL). According to reports, BPCL and Coal India will invest Rs 12,000 crore in the joint venture, with Coal India holding a 51% stake and BPCL 49%. The investment supports BPCL’s clean energy goals and Coal India’s efforts to diversify coal use. The government will provide Rs 1,350 crore in funding for the project.

The company’s Bina refinery project, which involves an investment of Rs 50,000 crore, is expected to be commissioned by FY28, with a production capacity of 2.2 million metric tonnes per annum of bulk petrochemicals. The propylene project at the Kochi refinery, with a capacity of 4 lakh tonnes per annum, is set to be commissioned by FY27. Speaking about the capex on these projects, VRK Gupta, Director of Finance, said, “We don't anticipate a significant increase in borrowing in the next couple of years. However, from FY27 and FY28 onwards, peak capex will occur for both the Bina and Kochi projects, leading to higher borrowings. In the next 1–2 years, we expect a capex plan of around Rs 18,000–20,000 crore.”

Geojit BNP Paribas has given a ‘Hold’ rating to BPCL with a target price of Rs 326. This indicates a potential upside of 11.1%. The brokerage expects earnings growth in the coming quarters, driven by its expanding market share across segments, aggressive capital expenditure, and strategic partnerships. However, geopolitical uncertainties and volatile oil prices remain key risks that could affect the company's performance.

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
27 Dec 2024
Market closes higher, Cochin Shipyard secures a Rs 450 crore order from Adani Ports
By Trendlyne Analysis

Nifty 50 closed at 23,813.40 (63.2, 0.3%) , BSE Sensex closed at 78,699.07 (226.6, 0.3%) while the broader Nifty 500 closed at 22,445.20 (14.9, 0.1%). Market breadth is horizontal. Of the 2,401 stocks traded today, 1,130 were in the positive territory and 1,235 were negative.

Indian indices closed in the green, with the benchmark Nifty 50 index closing at 23,813.4 points. The Indian volatility index, Nifty VIX, declined 5.7% and closed at 13.2 points. UltraTech Cement acquired an 8.7% stake in Star Cement for Rs 851 crore.

Nifty Smallcap 100 closed in the green, while Nifty Midcap 100 closed in the red. Nifty Pharma and Nifty Auto were among the top index gainers today. According to Trendlyne’s Sector dashboard, Healthcare Equipment & Supplies emerged as the best-performing sector of the day, with a rise of 2.1%.

Asian indices closed mixed, while European indices are trading in the green with an exception of Russia’s MOEX & RTSI index. US index futures traded in the red, indicating a cautious start to the trading session. Wedbush raised its price target on Apple to $325, citing the transformative AI-driven iPhone upgrade cycle, which is expected to drive growth into 2025. Brent crude oil futures are trading in the green following the growing hopes for fresh stimulus from China that could lift the demand outlook on crude.

  • Relative strength index (RSI) indicates that stocks like KFIN Technologies, Amber Enterprises, Intellect Design Arena, and Five-Star Business Finance are in the overbought zone.

  • Max Estates rises sharply as its subsidiary, Max Estates 128, launches phase-2 of Estate 128 in Noida. The project achieves pre-sales bookings worth Rs 845 crore, taking the total booking value to Rs 2,700 crore.

  • SKF India is rising as its board approves a scheme of arrangement to demerge its industrial business. The company plans to transfer the Industrial Business to its wholly-owned subsidiary, SKF Industrial.

  • JSW Infrastructure rises sharply as Motilal Oswal maintains its 'Buy' call with a higher target price of Rs 375 per share. This indicates a potential upside of 15.8%. The brokerage believes the company's focus on expanding capacity, improving the third-party cargo mix, and enhancing utilization at existing ports will drive continued volume growth. It expects the firm's revenue to grow at a CAGR of 19% over FY25-27.

  • Zaggle Prepaid Ocean Services aims to acquire at least two companies in the next financial year to drive growth. Founder and Executive Chairman Raj Narayanam states that the company is evaluating 5 to 6 potential targets in the SaaS FinTech space, including merchant card software, accounts receivables, and FASTag solutions.

  • Cochin Shipyard rises to its 5% upper limit as it receives an order worth Rs 450 crore from Adani Ports and Special Economic Zone. The order involves building eight 70-tonne bollard pull tugs under the Make in India initiative.

  • IndusInd Bank rises sharply as it reportedly seeks to offload Rs 1,573 crore of non-performing microfinance retail loans. The bank plans to auction these distressed assets through public bidding as sector stress increases.

  • Choice International is rising as it receives in-principle approval from the Securities and Exchange Board of India (SEBI) to sponsor and establish a mutual fund. The company will set up an Asset Management Company and a Trustee Company.

  • The Reserve Bank of India (RBI) highlights that credit growth for banks has been broad-based in 2023-24, led by the personal loan and services sectors, followed by agriculture and industry. The share of services and personal loans in total credit increased from 21.9% and 17.1%, respectively, at the end of March 2013 to 27.9% and 32.4%, respectively, by March 2024.

  • NBCC (India) is rising as it receives work orders worth Rs 368.8 crore. These include a Rs 300 crore order from Varanasi Development Authority to develop the Jawaharlal Nehru Commercial Complex, a Rs 44.4 crore order from Power Grid Corp for construction and furnishing works at AIIMS Gorakhpur, and a Rs 24.4 crore order from IIT Roorkee for construction and development works.

  • EFC (I) is rising as its board of directors approves a bonus issue of shares to equity holders in the ratio of 1:1. This means that each shareholder will receive one fully paid-up equity share with a face value of Rs 2 for every share they hold on the record date.

  • Concord Enviro Systems' shares debut on the bourses at a 17.8% premium to the issue price of Rs 701. The Rs 500.3 crore IPO received bids for 10.7 times the total shares on offer.

  • Dixon Technologies' wholly-owned subsidiary, Dixon Electro Manufacturing, signs a memorandum of understanding (MoU) with Cellecor Gadgets to manufacture refrigerators and other components for the company. This partnership aims to expand Dixon Electro Manufacturing's customer base in the refrigerator segment.

  • Mamta Machinery’s shares debut on the bourses at a 146.9% premium to the issue price of Rs 243. The Rs 179.4 crore IPO received bids for 194.9 times the total shares on offer.

  • Jubilant Foodworks rises to its new 52-week high of Rs 724.9 as it enters a memorandum of understanding (MoU) with Coca-Cola India. The agreement covers the purchase of sparkling beverage products and other items from Coca-Cola's authorized bottlers, as well as collaboration on marketing activities.

  • Aarti Pharmalabs rises sharply as Sunil Singhania’s Abakkus Asset Manager buys a 1.2% stake worth Rs 61.5 crore via a block deal. The transaction was executed at an average price of Rs 575 per share.

  • The government is considering an amendment to the Income Tax Act in the 2025 Budget to simplify the taxation regime for foreign semiconductor firms. The proposal includes a presumptive taxation scheme under Section 44 to attract global companies and boost semiconductor manufacturing in India. The amendment aims to ease compliance and position India as a leading semiconductor manufacturing hub.

  • Star Cement rises sharply as UltraTech Cement acquires an 8.7% stake in the company for Rs 851 crore. The stake was purchased from Star Cement's promoter group via a block deal at an average price of Rs 235 per share.

  • Sanathan Textiles’ shares debut on the bourses at a 31.6% premium to the issue price of Rs 321. The Rs 550 crore IPO received bids for 35.1 times the total shares on offer.

  • Transrail Lighting’s shares debut on the bourses at a 36.6% premium to the issue price of Rs 432. The Rs 838.9 crore IPO received bids for 80.8 times the total shares on offer.

  • DAM Capital anticipates a recovery for the auto sector in FY26, driven by favorable macroeconomic conditions. The brokerage highlights attractive valuations and a positive risk-reward outlook as key factors. It upgrades Tata Motors and Escorts Kubota to 'Buy' from 'Neutral' with target prices of Rs 870 and Rs 3,550, respectively. It lists M&M, TVS Motor, and RK Forgings as its top picks.

  • DAM Capital Advisors’ shares debut on the bourses at a 38.9% premium to the issue price of Rs 283. The Rs 840.3 crore IPO received bids for 82.1 times the total shares on offer.

  • Va Tech Wabag is rising as it secures an order worth €78 million (approximately Rs 700 crore) from Lusaka Water Supply and Sanitation Company (LWSC). The contract involves the development of two waste water treatment plants in Zambia, one with a capacity of 54 million litres per day (MLD) and the other with 19 MLD, located in Ngwerere and Chunga.

  • Gensol Engineering is rising as it secures an EPC contract worth Rs 897.5 crore from NTPC Renewable Energy. This contract involves the development of 225 MW-AC grid-connected solar PV projects at the GSECL Solar Park in Khavda, Gujarat.

  • Power Mech Projects is rising as it secures an order worth Rs 186 crore from Jaiprakash Power Ventures (JPVL) to provide field operation and maintenance services for two units of the 660 MW Jaypee Nigrie Super Thermal Power Plant in Nigrie, Madhya Pradesh.

  • Nifty 50 was trading at 23,823.05 (72.9, 0.3%) , BSE Sensex was trading at 78,747.99 (275.5, 0.4%) while the broader Nifty 500 was trading at 22,492.75 (62.4, 0.3%)

  • Market breadth is surging up. Of the 1,939 stocks traded today, 1,360 were in the positive territory and 527 were negative.

Riding High:

Largecap and midcap gainers today include JSW Infrastructure Ltd. (323, 4.4%), Escorts Kubota Ltd. (3,258.40, 3.4%) and Oracle Financial Services Software Ltd. (12,646.60, 3.0%).

Downers:

Largecap and midcap losers today include NMDC Ltd. (69.32, -3.0%), Bharat Heavy Electricals Ltd. (235.40, -2.6%) and GAIL (India) Ltd. (192.50, -2.6%).

Volume Shockers

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

Top high volume gainers on BSE included Ajanta Pharma Ltd. (3,044, 9.1%), Garden Reach Shipbuilders & Engineers Ltd. (1,695.80, 8.9%) and Caplin Point Laboratories Ltd. (2,600.15, 8.4%).

Top high volume loser on BSE was Zydus Wellness Ltd. (1,898.55, -0.1%).

Finolex Industries Ltd. (256.05, 7.9%) was trading at 121.7 times of weekly average. Bata India Ltd. (1,381.30, 2.3%) and Usha Martin Ltd. (383.65, 5.9%) were trading with volumes 16.9 and 10.6 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

3 stocks took off, crossing 52 week highs, while 4 stocks tanked below their 52 week lows.

Stocks touching their year highs included - Caplin Point Laboratories Ltd. (2,600.15, 8.4%), Jubilant Foodworks Ltd. (708.10, 0.6%) and Oberoi Realty Ltd. (2,315.80, -0.3%).

Stocks making new 52 weeks lows included - Astral Ltd. (1,654.10, -1.0%) and Godrej Consumer Products Ltd. (1,067.80, -0.3%).

17 stocks climbed above their 200 day SMA including Garden Reach Shipbuilders & Engineers Ltd. (1,695.80, 8.9%) and Usha Martin Ltd. (383.65, 5.9%). 7 stocks slipped below their 200 SMA including ICICI Prudential Life Insurance Company Ltd. (656.15, -1.8%) and Maharashtra Seamless Ltd. (695.25, -1.4%).

 
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The Baseline
27 Dec 2024
The biggest global index gainers of 2024 | Screener: stocks with high momentum and durability scores
By Tejas MD

2024 is ending with investor hopes for a Santa rally. But so far, December has brought little festive cheer to global markets. The month has seen volatility in India and steep declines in US indices, driven by the Federal Reserve's cautious outlook on rate cuts for 2025.

Fed Chair Jerome Powell's words travel around the world, and after he said on December 18 that rate cuts would be slower - "it's like...driving on a foggy night, you need to move slowly" - the Nifty 50 dropped 2.5% in the next two trading sessions. 

If the Fed keeps US interest rates higher, then foreign investors will prefer investing in safer, high-yield US bonds than in riskier emerging markets like India. 

But despite December's muted performance, it was a strong year for global equity markets. But which index was the winner of 2024? And which sectors and stocks powered the surge?

Let’s uncover the stars of the year.

In this week’s Analyticks,

  • 2024 index winners: The indices that top the list, amid tough competition
  • Screener: Stocks with high Trendlyne Momentum and Durability scores, with high revenue forecasts for the upcoming quarter

2024 round-up: A strong year for major global indices

Equity markets across major economies have had a good year, riding high on cooling inflation and interest rate cuts from central banks worldwide.

It is Taiwan's Weighted Index that tops the charts, with the highest one-year gain. As AI investments surged, its semiconductor and electronics sectors boomed. 

Major global indices post gains in the past year

The US S&P 500 and Nasdaq 100 also delivered. India's Nifty 500, rose over 18% in the past year. This is despite falling sharply in the past quarter due to FII selling and muted Q2 results. 

China’s Shanghai Composite recovered from its lows after a massive government stimulus, helping the index rise 23% in the past quarter. 

When looking at five-year performance, the Nasdaq 100 emerges as the leader, followed by India’s Nifty 500. On the flip side, Hong Kong's Hang Seng, the FTSE 100, and the Shanghai Composite have lagged. 

The top stock gainers in the respective indices indicate tech as the top performer for the US, while finance, energy and industrials won elsewhere.

Top-performing stocks across global indices in 2024

The US has dominated global tech in 2024, thanks to AI investments by the Magnificent Seven (Apple, Microsoft, Alphabet, Amazon, Nvidia, Meta Platforms and Tesla).

But 2025 may be more muted. These stocks rose on the promise of the AI investments they made in 2024. Now comes the hard part: these investments have to show financial gains.

Central bankers gave stock markets a boost (except for the RBI)

Central Banks shifted their interest rate policies in 2024. When inflation rose to record levels in 2022, major central banks had raised interest rates. Now with the exception of RBI, most central banks are cutting rates.

RBI yet to start with rate cuts

Lower interest rates allow companies and people to borrow money cheaply, driving consumption and boosting the economy. The Euro zone was among the first to cut interest rates in June. The US followed in September. The US Fed has cut rates by a whole percentage point in 2024. 

The RBI has held off cutting interest rates in India despite the global trend, due to inflation breaching the upper tolerance limit of 6% in October. Weaker-than-expected GDP growth in Q2 and persistent foreign investor outflows caused Indian markets to enter correction territory in November. 

Which sectors and stocks contributed most to the stock market jump in India and the US? 

General industrials and consumer durables stocks shine in 2024

Several sectors stood out in the Indian market in 2024, with general industrials, consumer durables, realty and pharma stealing the spotlight.

Three of the top four contributors in the general industrials sector are from the defence industry: Mazagon Dock Shipbuilders, Bharat Electronics, and Hindustan Aeronautics, as the Indian government, focused on border tensions, boosted spends on domestic defence equipment and product manufacturing. 

In consumer durables, solar energy player Premier Energies and electronics manufacturer Dixon Tech lead the pack, with their share prices jumping sharply in the past year. Waaree Energies and Premier Energies both debuted on the market this past quarter—and haven’t stopped climbing since. 

General Industrials emerges as the start sector in the past year

The pharma sector has continued its recovery, with falling raw material costs and a resurgence in API manufacturing demand. Lupin, Torrent Pharma, Divi’s Labs, and Sun Pharma are leading the charge. 

In the realty sector, Anant Raj leads the pack with strong residential market demand. Analysts are also bullish on the company's presence in the data centre space. Other top contributors include Prestige Estates, Oberoi Realty, and Macrotech Developers. 

Hardware tech, software & services are star segments in the US

2024 was a great year for America's big guns. The Magnificent Seven dominated the sectors that saw the most growth this year: hardware technology and equipment, automobiles &auto components, and software and services.

Among them, Nvidia's CEO Jensen Huang in his signature leather jacket, stole the show. The media anointed Huang as 'the Steve Jobs of AI' and people clamoured for his autograph, as the demand for AI-related technologies catapulted Nvidia to the top. Semiconductor powerhouses Broadcom and Taiwan Semiconductor Manufacturing (ADR) also soared.

Nvidia drives the hardware tech & equipment sector higher

In the retail sector, Walmart was the winner. Its strong Q3 results, which outpaced Trendlyne’s Forecaster estimates for both revenue and net profit, pushed its stock to new highs.

Screener: Stocks with high Trendlyne Momentum and Durability scores with  high revenue forecasts for the upcoming quarter

IT stocks have high momentum and revenue growth forecast

As we inch closer to the end of Q3FY25, we take a look at technically strong stocks with high Forecaster estimates for YoY revenue growth in Q3FY25. This screener shows stocks with high Trendlyne omentum and durability scores where Forecaster estimates high quarterly revenue YoY growth.

The screener is dominated by stocks from the heavy electrical equipment, IT consulting & software, realty, exchange, and asset management companies industries. Major stocks featuring in the screener are BSE, KFIN Technologies, Kaynes Technology, Dixon Technologies (India), Coforge, Newgen Software Technologies, Persistent Systems, and KEC International.

BSE shows up in the screener with the highest Trendlyne momentum score of 76.2, helped by the exchange stock surging by 38.6% over the past quarter. Trendlyne’s Forecaster expects the company’s revenue to grow 67.6% YoY in Q3FY25. Analysts at Motilal Oswal Financial Services expect momentum from BSE's relaunch of derivative products, new product launches, and improvement in member participation.

Coforge also appears in the screener with a high Trendlyne momentum score of 71.4 due to the IT consulting & software stock’s price rising by 36.4% over the past three months. Trendlyne’s Forecaster expects the company’s revenue to grow by 37.4% YoY in Q3FY25. Analysts at Sharekhan say its revenue should improve via its growing order book, strong large deal pipeline, and synergies from the Cigniti acquisition. 

You can find some popular screeners here.

 
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The Baseline
26 Dec 2024
Five stocks to buy from analysts this week - December 26, 2024
By Ruchir Sankhla

1. Awfis Space Solutions:

ICICI Securities maintains its ‘Buy’ rating on this consumer services company with a target price of Rs 1,049, indicating an upside of 44.7%. Awfis Space Solutions provides workspace rentals and enterprise workspace design and building services. The company has a pipeline of 150,649 seats, with over 110,000 operational as of September 2024. Analysts Adhidev Chattopadhyay and Saishwar Ravekar expect a modest increase in seat prices (4-5% like-to-like) over FY25–27, with steady occupancy of around 71% in its operational portfolio during this period, as new centres typically take 6-12 months to fully mature.

The analysts highlight that workspaces are increasingly integrating flexible office spaces into their portfolios as part of “Core + Flex” strategies. According to a survey, ~30% of respondents plan to expand their presence in flexible office spaces over the next 12 months. Chattopadhyay and Ravekar said, "We estimate the company will achieve a 31% revenue CAGR over FY25–27, driven by seat expansion. Additionally, we expect EBITDA margin to rise to 14.6% by FY27, up from 9.2% in FY24, as the non-seat revenue increases and cost-optimisation initiatives in existing centres take effect."

2. Oberoi Realty:

Axis Direct initiates a ‘Buy’ rating on this realty company with a target price of Rs 2,560, indicating an upside potential of 10.2%. Oberoi Realty is a major real estate developer in Mumbai, active in residential, retail, hospitality, and social infrastructure projects, and in the luxury and ultra-luxury real estate market.

The analysts Eesha Shah and Preeyam Tolia highlight that the company plans to expand into key markets such as Delhi NCR, where rising demand for premium properties is an opportunity for high-end projects. The company has around 17.2 million sq ft of upcoming projects in MMR and Delhi region. The analysts note that the company has completed over 35 projects and holds a portfolio of ~30 Mn sq ft of ongoing and future developments. The company is expected to achieve a pre-sales CAGR of 25% between FY25-27. 

Shah and Tolia expect a CAGR of 17.8% in net sales and 20.2% in net profit over FY25-27. Additionally, they also expect collections to grow at a CAGR of 20% over the same period.

3. PNB Housing Finance:

Motilal Oswal reiterates its ‘Buy’ rating on this housing finance company  with a target price of Rs 1,160, indicating an upside potential of 36.4%. Analysts Abhijit Tibrewal, Nitin Aggarwal and Raghav Khemani highlight that the company is shifting its loan mix toward higher-yield emerging and affordable housing segments. These segments now account for 23% of its portfolio, up from 18% in March 2023.

This shift is driven by leveraging the Credit Linked Subsidy Scheme (CLSS) scheme under the Pradhan Mantri Awas Yojana (PMAY), which is expected to improve yields and expand net interest margins (NIMs). The analysts also note that the company plans to open 15 new branches in the affordable housing segment during FY25. Further, they target to add around 50 new branches every year from FY26 onwards.

Tibrewal, Nitin Aggarwal and Raghav Khemani believe the company is well-positioned to navigate the headwinds in net interest margin (NIM) growth and further offset it with an improvement in product mix. They expect the firm's revenue to grow at a CAGR of 26.6% over FY25-27, with the loan book expanding at ~18% CAGR and net profit at ~23% CAGR over the same period.

4. Bharat Forge:

Geojit BNP Paribas upgrades its rating to ‘Buy’ on this industrial products manufacturer with a target price of Rs 1,558. This indicates an upside of 18.6%.  In H1FY25, the company's revenue grew 2% YoY to Rs 7,795 crore, while net profit increased significantly by 32.1% to Rs 598 crore. EBITDA margin improved by 190 bps to 17.8%, driven by a favorable product mix and strong domestic business performance.

Bharat Forge’s (BFL) capital expenditure (capex) for the first half of the year totalled Rs 820 crore, primarily focused on US operations and investments in the EV business. Analyst Antu Thomas expects the EV segment to achieve EBITDA break-even in the next two to three quarters, despite the current slowdown in Europe.

The company secured new orders worth approximately Rs 646 crore in H1, contributing to a total order book of Rs 2,200 crore, primarily from defence. Thomas expects continued growth in the defence order book, which should help expand margins, along with long-term improvements in overseas operations strengthening BFL’s stability.

5. Lumax Auto Technologies:

Sharekhan reiterates its ‘Buy’ rating on this small cap auto parts & equipment manufacturer with a target price of Rs 767, indicating an upside potential of 23.6%. Lumax Auto Technologies (LATL) has entered the CNG segment by acquiring a 60% stake in Greenfuel Energy Solutions for Rs 153.1 crore.

The analysts say that this acquisition will provide access to the growing green fuels market, including CNG, hydrogen, and related technologies. The deal is expected to generate annual revenue of Rs 300-350 crore with a CAGR of 25-30% for the next few years. They also highlight that LATL’s order book has reached Rs 1,050 crore in Q2FY25, with 40% dedicated to EV models.

The analysts believe the company is focusing on increasing content per vehicle, pursuing joint ventures and acquisitions to introduce new product categories, and strengthening partnerships with original equipment manufacturers (OEMs). LATL is also investing in research and development for advanced technologies such as autonomous driving assistance, electronics integration, and Human-Machine Interface. As a result, they expect a CAGR of 12.9% in revenue for FY25-27.

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

(You can find all analyst picks here)

 
Trendlyne Marketwatch
Trendlyne Marketwatch
26 Dec 2024
Market closes flat, Redtape's board approves a 3-for-1 bonus issue of shares
By Trendlyne Analysis

Nifty 50 closed at 23,750.20 (22.6, 0.1%) , BSE Sensex closed at 78,472.48 (-0.4, 0%) while the broader Nifty 500 closed at 22,430.35 (27.7, 0.1%). Market breadth is in the red. Of the 2,398 stocks traded today, 900 were gainers and 1,461 were losers.

Nifty 50 closed flat after paring gains from the morning session. The Indian volatility index, Nifty VIX, rose 6.5% and closed at 14 points. National Aluminium surged as it signed a mining lease agreement with the District Collector, Angul, to mine coal from the Utkal-D and Utkal-E coal blocks. 

Nifty Smallcap 100 and Nifty Midcap 100 closed flat, taking cues from the benchmark index. S&P BSE Services and Nifty200 Momentum 30 Index were among the top index gainers today. According to Trendlyne’s sector dashboard, Transportation emerged as the top-performing sector of the day, with a rise of 2.6%.

Asian indices closed mixed. US index futures are trading in the red, indicating a negative start to the trading session. Brent crude oil futures are trading higher due to China's new $411 billion stimulus measures and a decline in US crude inventories.

  • Bank of India sees a long buildup in its December 26 futures series, with open interest increasing by 135.6% and a put-call ratio of 2.5.

  • Redtape is rising as its board of directors approves a bonus issue of shares to equity holders in the ratio of 3:1. This means that each shareholder will receive three fully paid-up equity shares with a face value of Rs 2 for every share they hold on the record date.

  • Indian Railway Catering and Tourism Corporation (IRCTC) falls as its platform experiences downtime due to maintenance activities. The company has confirmed the outage and states that the issue stands resolved.

  • Unimech Aerospace and Manufacturing's Rs 500 crore IPO receives bids for 118.5X the available 47 lakh shares on offer on the third day of bidding. The retail investor quota gets bids for 45.6X the available 23.4 lakh shares.

  • Venkatraman Narayanan, Executive Director of Happiest Minds Technologies, maintains a growth target of 30-35% for FY25. He highlights the second half of the year looks stronger than H1 and expects stability in the EdTech and Healthcare segments, along with a gradual recovery in the Retail and CPG sectors. Narayanan also adds that the company aims to maintain a margin range of 20-22%.

  • India Cements' board of directors approves the resignation of its Managing Director (MD) and Chief Executive Director (CEO), N Srinivasan, effective December 25.

  • Ola Electric Mobility rises as it expands its network to 4,000 stores nationwide, a four-fold increase. The company aims to drive EV adoption with over 3,200 new stores featuring service facilities across India.

  • NTPC Green Energy is falling as anchor investors offload their stake after the first lock-in period ends. As a result, approximately 18.3 crore shares, or 2.2% of the company’s outstanding equity, become eligible for trading in the open market.

  • Nuvama Institutional Equities expects CG Power, Rail Vikas Nigam, and Indus Towers to move from the 'midcap' to 'large cap' category, ahead of the Association of Mutual Funds of India's (AMFI) semi-annual rejig for H1CY25. The brokerage expects that Adani Total Gas, NHPC, and Bharat Heavy Electricals will likely shift from large caps to midcaps.

  • Vantage Knowledge Academy is rising sharply as its board of directors schedules a meeting for January 7 to consider a proposal for a bonus issue of shares. The board will also consider approving an interim dividend for its shareholders.

  • One Mobikwik Systems rises to its all-time high of Rs 698.3 as 18.6 lakh shares (2.4% stake) worth approximately Rs 118 crore reportedly change hands in a block deal at an average price of Rs 635 per share.

  • Bharat Petroleum Corp wins NTPC's 1200 MW solar tender as the lowest bidder, securing 150 MW. The Rs 756.5 crore project will be developed in two years, generating Rs 100 crore revenue annually from 400 million clean energy units.

  • According to Anarock, Indian housing sales decline 4% this year across seven major cities, totaling nearly 4.6 lakh units. Meanwhile, average housing prices increase by 21% due to higher costs of land, labor, and certain building materials. However, the brokerage notes the overall sales value of housing units has grown by 16% annually, reaching Rs 5.7 lakh crore in 2024, up from Rs 4.9 lakh crore in 2023.

  • Motilal Oswal maintains its 'Buy' call on PNB Housing Finance with a higher target price of Rs 1,160 per share. This indicates a potential upside of 37.3%. The brokerage believes the company is well-positioned to navigate the headwinds in net interest margin (NIM) growth and further offset it with an improved product mix. It expects the firm's revenue to grow at a CAGR of 26.6% over FY25-27.

  • Welspun Corp is rising as its associate company, East Pipes Integrated Company for Industry (EPIC), secures multiple contracts worth over SAR 57 million (approximately Rs 130 crore). The contracts are from Saudi Real Estate Infrastructure Company (Binyah) and Al Rashid Trading and Contracting Company to manufacture and supply steel pipes with coatings.

  • Surya Roshni is rising as it receives approval from the NSE and BSE for a bonus issue of 10.9 crore shares in the ratio of one share for every share held in the company. The company sets January 2 as the record date of the issue.

  • Reports suggest that Welspun Group's Goenka family is exploring options to reduce their stake in Welspun One, a warehousing and logistics firm with key assets in India. The promoters are said to be in direct discussions with overseas investors, including some from Japan, without the involvement of banks. The company plans to raise funds to grow its assets under management (AUM) to $1 billion (Rs 83,000 crore) by 2026.

  • Bharat Forge's board of directors approves a €39 million (Rs 345 crore) investment in its German subsidiary, Bharat Forge Global Holding GmbH (BFGH), to address borrowings and strengthen the financial position of its European units.

  • National Aluminium is rising as it signs a mining lease agreement with the District Colletor, Angul, to mine coal from the Utkal-D and Utkal-E coal blocks. The company plans to increase the coal production capacity to 4 MTPA to supply coal to the captive power plant.

  • Jammu & Kashmir Bank is rising as its board appoints Amitava Chatterjee as the new Managing Director (MD) and Chief Executive Officer (CEO), succeeding Baldev Prakash, for three years, effective December 30.

  • Elara Capital retains its 'Buy' rating on Oberoi Realty with a target price of Rs 2,350. The brokerage highlights the company’s foray into the uber-luxury segment in Alibaug, Mumbai, and anticipates gross development value (GDV) of around Rs 4,000-4,500 crore. It considers large deal closures as the near term catalysts for the company. Elara also highlights the company's industry-leading profitability.

  • Panacea Biotech surges to its 5% upper circuit as it bags an order worth $15 million (~ Rs 127 crore) from the United Nations Children's Fund (UNICEF) to supply 11.5 crore bivalent oral polio vaccine (bOPV) in 2025.

  • Garware Technical Fibres is surging as it receives approval from the NSE for a bonus issue of 7.9 crore equity shares. Shareholders will get four shares with a face value of Rs 10 for every share held in the company.

  • Ramky Infrastructure is rising as it receives a letter of acceptance (LoA) worth Rs 215.1 crore from the Hyderabad Metropolitan Water Supply and Sewerage Board (HMWSSB). The contract covers the maintenance of sewage treatment plants (STPs) and related interception and diversion (I&D) systems for five years.

  • Ceigall India rises sharply as its subsidiary, Ceigall Ludhiana Bathinda Greenfield Highway, signs a concession agreement worth Rs 981 crore with the National Highways Authority of India (NHAI). As per the agreement, the company will develop the 6-lane access controlled Ludhiana-Bathinda Greenfield highway section.

  • Nifty 50 was trading at 23,835.40 (107.8, 0.5%), BSE Sensex was trading at 78,557.28 (84.4, 0.1%) while the broader Nifty 500 was trading at 22,480.95 (78.3, 0.4%).

  • Market breadth is highly positive. Of the 1,969 stocks traded today, 1,399 were gainers and 524 were losers.

Riding High:

Largecap and midcap gainers today include Adani Ports & Special Economic Zone Ltd. (1,243.95, 5.2%), CG Power and Industrial Solutions Ltd. (743.75, 4.2%) and Adani Green Energy Ltd. (1,064.25, 3.2%).

Downers:

Largecap and midcap losers today include Page Industries Ltd. (47,083.35, -3.6%), SBI Cards and Payment Services Ltd. (679.20, -2.4%) and Bharti Hexacom Ltd. (1,457.05, -2.3%).

Volume Shockers

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

Top high volume gainers on BSE included Intellect Design Arena Ltd. (1,051.90, 14.9%), Godfrey Phillips India Ltd. (5,511, 8.9%) and PNC Infratech Ltd. (330.10, 7.1%).

Top high volume losers on BSE were Chemplast Sanmar Ltd. (493.60, -2.7%) and Cummins India Ltd. (3,364.25, -0.4%).

Rajesh Exports Ltd. (235.81, 3.0%) was trading at 56.9 times of weekly average. Blue Dart Express Ltd. (7,400, 4.7%) and Jammu & Kashmir Bank Ltd. (102.01, 3.9%) were trading with volumes 24.7 and 6.0 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

5 stocks overperformed with 52 week highs, while 10 stocks tanked below their 52 week lows.

Stocks touching their year highs included - Amber Enterprises India Ltd. (7,867.70, 8.5%), 360 One Wam Ltd. (1,245, 0.7%) and Lloyds Metals & Energy Ltd. (1,167.30, -1.8%).

Stocks making new 52 weeks lows included - Asian Paints Ltd. (2,262.40, -1.0%) and Astral Ltd. (1,671.50, -1.3%).

18 stocks climbed above their 200 day SMA including Intellect Design Arena Ltd. (1,051.90, 14.9%) and Blue Dart Express Ltd. (7,400, 4.7%). 19 stocks slipped below their 200 SMA including Usha Martin Ltd. (362.40, -3.1%) and Chemplast Sanmar Ltd. (493.60, -2.7%).

 
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The Baseline
24 Dec 2024
Chart of the Week: Biggest wealth destroyers over the past year
By Aditi Priya

Over the past year and despite the volatility in recent months, the Indian equity market has delivered impressive returns, with the Nifty 500 index gaining 17.6% in 2024. 

Foreign outflows increased recently due to high equity valuations and muted Q2 results in India. Foreign investors were lured elsewhere by US Fed rate cuts and recent China stimulus, contributing to an 8.1% decline in the Nifty 500 over the past quarter. 

Finance Minister Nirmala Sitharaman said on December 17, “This is only a temporary blip, and healthy growth will return in the coming quarters.” She added that India’s GDP growth has averaged 8.3%, making it the world’s fastest-growing major economy. 

While the Indian equity market still managed to post strong gains in the past year, the gains were unevenly distributed. Some companies surged ahead, while others struggled due to challenges such as regulatory investigations (Vodafone Idea, Rajesh Exports), sector-wide downturns (banking and finance), or significant business losses (Honasa Consumer, Tanla Platforms), leading to a loss of investor wealth. 

In this edition of Chart of the Week, we spotlight the underperformers – companies that saw significant declines in their share prices, lagging behind the index and leaving investors disappointed.

126 companies from the Nifty 500 have made it to the ‘Wealth Destroyers’ screener in 2024. The banking and finance sector struggled the most, contributing 28 names to the list. Among them are CreditAccess Grameen, RBL Bank, Ujjivan Small Finance Bank, IndusInd Bank, and Equitas Small Finance Bank. The software and services sector followed, with 11 companies making it to the screener including Tanla Platforms, Tata Technologies, Happiest Minds, Tata Elxsi and Birlasoft.

A canceled merger and rising competition weigh on Zee Entertainment

Media company Zee Entertainment, witnessed the sharpest decline of 52.9% this year within the Nifty 500 universe, topping the wealth destroyer screener. It has been a tough year for the company, with the main setback being the cancellation of its proposed merger with Sony Group’s India unit, which cited concerns over fund diversion and weak corporate governance. 

Additionally, the joint venture between Reliance Industries and Walt Disney, announced on February 28, merged Viacom18 and Star India, has created a media giant valued at Rs 70,352 crore. This has intensified competition, making it more difficult for Zee to grow its market share. The company also reported mixed results in Q2FY25, with revenue and operating profit falling nearly 19% and 3% YoY, respectively. However, net profit saw a 70% YoY increase driven by a 20.3% reduction in expenses through effective cost management. But the previous year's net profit was affected downward by a one-time charge of Rs 120 crore, which did not recur this year. The net profit  this Q2 rose mainly due to reduced expenses and the absence of last year's one-time charge, and operating profit declined.

Multiple banking and finance companies feature in the Wealth Destroyers 

CreditAccess Grameen, one of India’s largest non-banking finance company-microfinance institutions (NBFC-MFI), saw the sharpest decline of 49.2% in 2024 in share price within the banking and finance sector. This came after its Q2FY25 results highlighted increasing delinquencies in the microfinance space, slower disbursements, and higher provisions. Gross NPA rose by 1.7 percentage points YoY to 2.4%, while net NPA increased by 0.5 percentage points YoY to 0.8%, signaling a decline in asset quality. 

In fact, the Nifty Bank index, with an 8% return in 2024, has notably underperformed the broader Nifty 500 index. Banks such as AU Small Finance Bank, Axis Bank, IndusInd Bank, and IDFC First Bank have significantly contributed to this underperformance, appearing on the wealth destroyer screener. IndusInd Bank has faced a sharp 40.1% decline over the past year. This was due to increased stress in microfinance loans, failure to meet its full-year loan growth target, and a surge in bad loans in the microfinance segment. Similarly, AU Small Finance Bank and IDFC First Bank have dropped nearly 30% in 2024, while Axis Bank has recorded a smaller decline of 0.9% during the same period.

In addition to these big names in the sector, small finance banks and institutions with high exposure to unsecured loans also struggled. RBL Bank faced asset quality concerns due to rising NPAs and regulatory challenges, which eroded investor confidence and sharply reduced its share value by 40.1% over the past year. The gross NPA ratio rose by 0.2 percentage points QoQ to 2.9%, while the net NPA increased by 0.1 percentage points QoQ to 0.8%.

Ujjivan Small Finance Bank saw a 41.5% drop in 2024, with net profit for Q2FY25 declining by 29% to Rs 233 crore. This decline was due to deteriorating asset quality and higher expenditures. The bank's gross NPA ratio increased to 2.5% in Q2FY25, up from 2.4% a year earlier, while the net NPA stood at 0.6%, compared to 0.1% previously.

Equitas Small Finance Bank saw a 38.6% decline in its stock price over the past year. Weak quarterly results in FY25 and higher provisions to address stress in its microfinance portfolio drove this drop.

Regulatory issues and weak financials trigger sell-off in Vodafone Idea and Rajesh Exports

Vodafone Idea's share price dropped over 45% in 2024 due to regulatory challenges and ongoing profitability concerns. The Supreme Court’s decision on Adjusted Gross Revenue (AGR) added financial pressure, requiring the company to pay significant dues. The company is also struggling with a shrinking customer base, lagging far behind Reliance Jio and Airtel, and rising costs, leading to doubts about its long-term financial health.

Similarly, Rajesh Exports, a gems and jewellery company, saw its stock decline by 36.3% over the past year, struggling with multiple challenges. The company faced regulatory compliance issues, including missing documents in earnings filings and tax-related controversies. The company also faced allegations of ambiguous transactions and lapses in disclosures, leading to accusations of misleading financial reporting. 

In addition, Rajesh Exports has struggled with declining revenues and thin profit margins since Q2FY24, making it difficult for the company to generate sustainable profits.

 
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.