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The Baseline
13 Dec 2024
Five Interesting Stocks Today - December 13, 2024

1. CEAT:

Thistyre manufacturersurged over 10% on Monday following the acquisitionannouncement of Camso's Off-Highway tyres (OHT) business from Michelin in an all-cash deal, valued at approximately $225 million (Rs 1,909 crore).

The acquisition of Camso is expected to strengthen CEAT's position in the OHT market, which currently contributes around 15% of revenues, and widen its customer base. The acquisition also provides CEAT with access to a global network of over 40 international OEMs and premium OHT distributors. 

InQ2 FY25, the company’s revenue increased 8% YoY, but net profit declined by 41.4% on a YoY basis. Even though revenue was in line with Forecasterestimates, net profit missed estimates by 16.4%, due to higher raw material prices in rubber and crude. However, based on Trendlyne’sindustry dashboard, Ceat has outperformed other major players in the auto tyres space over the past month and quarter.

Gross margins declined by 194 bps on a QoQ basis and by 587 bps on a YoY basis in Q2. MD & CEO, Arnab Banerjee,said, “The raw material prices escalated at a very steep rate of 6% (in) Q2 over Q1. It's very difficult to pass on the entire increase through finished goods in such a short period.” CEAT took price hikes across the board in September, and management hints at a further 1.5-2% hike for passenger, truck, and bus tyres.

Given that Camso is a tier-one brand, CFO Kumar Subbiah expects this acquisition to be margin accretive. Camso's off-highway construction equipment tyre and tracks business clocked revenue of around $200 million in 2023 and at the same run rate, Ceat’s revenue from the off-highway tyre business should double once the merger is complete.

2. Zen Technologies:

This defence company has risen by 14.9% in the past week after it made a push into the US defence market. Zen Technologies announced a partnership with Applied Visual Technology (AVT) Simulation, a provider of customized training systems, in Florida. The collaboration should boost simulation and training solutions for defence and security forces.

The company received an Indian patent on November 26 for its tank simulator, the T90 Containerized Crew Gunnery Simulator (T90 CGS). This system enables instructors to customize training scenarios, from basic skill tests to more complex exercises that involve the entire crew working together.

Chairman and MD Ashok Atluri said, "We expect a sizable revenue from this new technology, potentially contributing 5-10% of our revenues over the next three years." He added that the company has demonstrated the product to the US government, though it may take a couple of years before any deals materialize. However, the company expects opportunities in other countries to come sooner. Speaking about the market size, Atluri said, "Our estimates indicate that the market for tank simulators in India is around Rs 4,000 crore and nearly $1 billion overseas."

In Q2FY25, the company’s net profit surged 4.1X YoY to Rs 62.7 crore, while operating revenue grew 3.6X YoY to Rs 241.8 crore, surpassing Trendlyne Forecaster estimates by 26.7% and 20.8%, respectively. As of Q2, the company had an order backlog of ~Rs 960 crore, with an order pipeline of Rs 3,500 crore. The management expects to receive Rs 1,200 crore in orders during H2FY25. 

Motilal Oswal retains its ‘Buy’ call on Zen Technologies with a target price of Rs 2,400. This indicates a potential upside of 10.7%. The brokerage is positive about Zen's partnership with AVT Simulation. It anticipates 67% and 65% CAGR in revenue and net profit over FY25-27, driven by increased order inflows and better working capital management.

3. Bajaj Finance:

This NBFC company has risen 4.8% in the past week, following its investor day on December 10. During the event, Bajaj Finance outlined its long-term strategy and its plans to transition into a FinAI company. 

Under its 2025-29 long-range strategy (LRS), Bajaj Finance aims to grow its customer base to approximately 20 crore and double its retail credit market share to 4-5%. This is a big jump from the company’s current customer base, which stood at 9.2 crore in H1FY25. It also plans to enhance its market presence and increase from 4,245 locations so far in FY25 to over 5,200 by FY29. 

The NBFC also unveiled plans to evolve into BFL 3.0, a FinAI company – powered by fintech and AI, over the next 4-5 years. Bajaj Finance will deploy AI across all its processes, which will help improve efficiency, reduce costs, and enhance customer engagement. Commenting on this, Manish Jain, the CEO said, “We are currently implementing 29 GenAI use cases across 25 workstreams, which is expected to drive cost savings of around Rs 150 crore annually in FY26. You will see this adoption accelerating rapidly in the coming months”. 

In addition, the company highlighted three megatrends in focus - Green Finance, Multi Cloud, and Zero Trust. Bajaj Finance will extend financing for solar and EV products to retail and MSME customers, starting Q4FY25, and targets Rs 2,000 crore of green finance by FY26. 

Bajaj Finance’s net profit had surged 80.8% YoY to Rs 5,613.7 crore in Q2FY25. Revenue increased 27% to Rs 14,491.8 crore, driven by higher assets under management (AUM). The company’s AUM reached Rs 2.8 lakh crore in Q2, a rise of 28% YoY. Bajaj Finance projects an AUM of Rs 4 lakh crore for FY25, and analysts believe it is well-positioned to achieve the target.

Anand Rathi maintains its ‘Buy’ rating on Bajaj Finance with a target price of Rs 7,905. The brokerage believes the company is well poised to achieve its long-range targets due to its strong execution skills, robust customer base, and strong tech architecture.

4. Metropolis Healthcare:

Thishealthcare services company rose 2.6% on December 9 after its board approved theacquisition of a 100% stake in Delhi NCR headquartered Core Diagnostics, for Rs 246.8 crore. Core Diagnostics specialises in oncology testing, offering 1,300 tests and serving more than 6,000 specialty prescribers.

The managementbelieves the acquisition will strengthen the company’s specialty portfolio, including therapy monitoring and cancer confirmatory tests, enhancing its presence in the Rs 4,000-5,000 crore oncology diagnostics market, which is expected to grow at a CAGR of 17.5% from FY25-28. With this acquisition, Metropolis’ revenue contribution from oncology isexpected to grow to 10% from 4%, while specialty contribution will inch up to 41% from 37%. Core Diagnostics’ average revenue per test (ARPT) is Rs 2,300 which is 4.5 times than that of Metropolis Healthcare.

Surendran Chemmenkotil, CEO of Metropolis Healthcaresaid, "With the majority of Core’s revenue coming from Northern and Eastern India, this acquisition provides an opportunity to connect with leading hospitals in these regions." After the merger, Metropolis’ oncology sales team is set toincrease by 3.6 times to 130.

InQ2FY25, Metropolis Healthcare reported a net profit growth of 31.2% YoY to Rs 46.5 crore. Revenue increased 14% YoY to Rs 352.9 crore during the quarter, driven by a 7% growth in number of patients to 3.4 million and a 6% rise in revenue per patient to Rs 1,025. Commenting on the results, Chemmenkotilsaid, “We aim to achieve double-digit volume growth by focusing on our B2C segment and specialty tests while expanding our network to 1,000 towns in the next 12 to 18 months.”

Post the announcement of the acquisition, ICICI Securitiesmaintained its ‘ADD’ rating on Metropolis Healthcare with a target price of Rs 2,335. The brokerage expects an earnings CAGR of 32% over FY25-27 with revenue CAGR at 18.6%. It also expects EBITDA margin to remain in the range of 26-28% over FY26-27.

5. Kalpataru Projects International:

This construction & engineering company has risen by over 4% in the past week. On December 9th, the company and some of its international subsidiaries, secured new orders worth Rs 2,174 crore. These include an elevated metro rail project and a residential building project in India, along with orders in the Transmission & Distribution (T&D) sector both domestically and internationally. Speaking on the newly received orders, the company’s MD & CEO, Manish Mohnot, said, “With these orders, our YTD order inflow stands over Rs 16,300 crore, more importantly; nearly 85% of order intake till date is from our T&D and building & factories (B&F) business.”

KPIL posted a 41% YoY rise in net profit to Rs 125.5 crore in Q2FY25, and a 9.2% YoY increase in revenue due to segment wise revenue jumps in Urban Infra and T&D. The company however missed the Trendlyne Forecaster estimates for revenue by 1% and the net profit estimate by 9.7% due to weaknesses in railways and water segments on the back of delay in tendering and execution activities. It appears in a screener of stocks which have high momentum scores.

The company’s order book as of Q2FY25 stands at Rs 60,631 crore, out of which its T&D business and B&F business contributes the most at 37% and 22%, respectively. Sharekhan analysts estimate that India’s total capital expenditure in infrastructure sectors till FY25 will be around Rs 111 lakh crore. This substantial investment in infrastructure is expected to create strong growth opportunities for the company.

Manish Mohnot, CEO & managing director of the company, said, “Margins are improving due to the new, higher-margin order book secured over the last two years, with positive impact expected for the next 6-8 quarters. We foresee growth and margin improvement over the next two years and are confident in meeting our commitments. Despite challenges in the water business, mainly related to collections in some states, we remain focused on long-term growth.”

Sharekhan has maintained its ‘Buy’ rating on KPIL with a revised target price of Rs 1,570. The brokerage notes that the company’s Q2FY25 standalone performance was slightly weak on margins and profitability, though sales met expectations. It expects improvement driven by a strong order book, better JV & subsidiary performance, and reduced promoter pledges, all of which could act as key re-rating catalysts.

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
13 Dec 2024
Market closes higher, Zomato gets an Rs 803.4 crore GST demand order
By Trendlyne Analysis

Nifty 50 closed at 24,768.30 (219.6, 0.9%) , BSE Sensex closed at 82,133.12 (843.2, 1.0%) while the broader Nifty 500 closed at 23,358.95 (102.6, 0.4%). Market breadth is in the red. Of the 2,261 stocks traded today, 908 were on the uptick, and 1,320 were down.

Nifty 50 closed in the green after rising in the afternoon session. The Indian volatility index, Nifty VIX, fell 1% and closed at 13.1 points. Crisil surged to its new all-time high of Rs 5,896.8 as its board of directors approved the acquisition of a 4.1% stake in Online PSB Loans for Rs 33.3 crore.

Nifty Smallcap 100 closed lower, while Nifty Midcap 100 closed flat. S&P BSE Telecom and Nifty FMCG Index were among the top index gainers today. According to Trendlyne’s sector dashboard, Telecom Services emerged as the top-performing sector of the day, with a rise of 3.7%.

Asian indices closed mixed. European indices are trading mixed. US index futures are trading in the green, indicating a positive start to the trading session. Brent crude oil futures are trading higher as additional sanctions on Iran and Russia increased supply worries.

  • Money flow index (MFI) indicates that stocks like Lemon Tree Hotels, Muthoot Finance, Chalet Hotels, and Persistent Systems are in the overbought zone.

  • Jubilant FoodWorks rises after clarifying that it has no involvement in its parent, Jubilant Bhartia Group's 40% stake acquisition in Hindustan Coca-Cola Beverages (HCCB). The deal will be executed through Jubilant Beverages for approximately Rs 12,500 crore.

  • ICICI Bank plans to sell a 19% stake in ICICI Merchant Services to First Data Holdings (Netherlands) for Rs 160–190 crore. The divestment is expected to be completed by June 30, 2025.

  • Pennar Industries enters a joint venture (JV) with Zetwerk Manufacturing Businesses to manufacture and sell solar modules and cells, including the development and operations of the manufacturing unit.

  • India reaches $1 trillion (approximately Rs 83 lakh crore) in cumulative FDI inflows since 2000, fueled by a favorable business environment and innovation. FDI inflows increased by 26% in H1FY25, totaling $42.1 billion (around Rs 3.5 lakh crore). Taiwanese companies have significantly boosted their investments in India, exceeding $665 million (around Rs 5,500 crore) between 2018 and 2024, amid global trade tensions.

  • Astra Microwave Products is rising as its joint venture, Astra Rafael Comsys, secures an order worth Rs 255.9 crore from the Ministry of Defence. The order involves supplying 93 additional sets of software defined radios (SDR) and related components for the Su-30 MKI fighter aircraft.

  • One MobiKwik Systems' Rs 572 crore IPO receives bids for 50.5X the available 1.2 crore shares on offer on the last day of bidding. The retail investor quota gets bids for 108X the available 21.6 lakh shares.

  • Vishal Mega Mart's Rs 8,000 crore IPO receives bids for 6.5X the available 75.7 crore shares on offer on the last day of bidding. The retail investor quota gets bids for 1.8X the available 37.8 crore shares.

  • UBS maintains a 'Neutral' rating on IndusInd Bank and Axis Bank, reducing target prices to Rs 1,150 and Rs 1,210, respectively. The brokerage has a cautious stance on several Indian banks and non-banking financial companies (NBFCs), highlighting concerns over rising non-performing loans (NPLs), particularly in the commercial vehicle (CV) & business loan segments, and worsening portfolio quality.

  • Kalpataru Projects International sets a floor price of Rs 1,215 per equity share for its Rs 1,000 crore qualified institutional placement (QIP).

  • JK Tyre & Industries is rising as it secures a long-term loan of EUR 30 million (approximately Rs 266 crore) from DEG, a German development finance institution. The funds will support the sustainable expansion of production capacities at the company’s facility in Madhya Pradesh.

  • Indus Towers signs a power purchase agreement (PPA) with JSW Green Energy Eight, a special purpose vehicle (SPV), to procure renewable energy under a captive mode. It also plans to invest Rs 38 crore in the SPV through equity shares.

  • Krishnan Ramachandran, MD & CEO of Niva Bupa Health Insurance, believes that exempting GST on health insurance will raise costs. He projects the company’s gross written premium to surpass Rs 7,000 crore in FY25 and expects a combined ratio below 98% by the end of the year. Ramachandran anticipates the company will grow faster than the market over the next 3-5 years.

  • Innovia Multiventures LLP sells a 1.2% stake (32.3 lakh shares) in Godrej Properties worth approximately Rs 949.9 crore in a block deal on Thursday. Meanwhile, promoter Godrej Industries picks up a stake in the company.

  • Crisil rises to its new all-time high of Rs 5,788.8 as its board of directors approves the acquisition of a 4.1% stake in Online PSB Loans for Rs 33.3 crore.

  • Ambuja Cements begins power transmission from its 200 MW solar project in Khavda after receiving clearance from the Western Regional Load Dispatch Centre (WRLDC). The company plans to commission the remaining 806 MW capacity in phases from March to June 2025.

  • Jefferies upgrades Indian Oil Corp to 'Buy' with a higher target of Rs 185. The brokerage believes the company is well-positioned to benefit from improved refining margins among its peers due to a higher refining to marketing ratio. It notes the risk-reward is favourable after a correction of nearly 20% in the share price over the past three months until November.

  • Bajel Projects is rising as it secures a contract from Solapur Transmission to supply goods and services. The project involves establishing a 400/220 kV Solapur Power Station and two 400 kV line bays at Power Grid Solapur in Maharashtra.

  • Zomato receives a Goods & Services Tax (GST) demand order worth Rs 803.4 crore, including interest and penalty, from the Joint Commissioner of CGST & Central Excise in Thane, Maharashtra.

  • Reliance Industries reportedly signs a 10-year deal with Russia's Rosneft to import crude oil worth $12-13 billion annually.

  • India’s CPI inflation declines to 5.5% in November from 6.2% in October, below the RBI’s medium-term target of 2-6%, driven by lower vegetable prices. Meanwhile, industrial production (IIP) rose marginally to 3.5% YoY in October, fueled by growth in manufacturing.

  • Ashok Leyland announces a price increase of up to 3% on its entire range of commercial vehicles, effective January 2025, due to inflation and higher commodity prices.

  • G R Infraprojects is rising as it receives a letter of intent (LoI) worth Rs 107.7 crore from PFC Consulting for a transmission project in Karnataka. The work includes setting up a pooling station near Bijapur, building a power line to Raichur, and installing reactors and line bays.

  • Hindustan Aeronautics is rising as it secures an order worth Rs 13,500 crore from the Ministry of Defence (MoD) to supply 12 Su-30MKI aircraft and associated equipment to the Indian Air Force.

  • Tata Motors is rising as it announces a price hike of up to 2% for its entire range of trucks and buses, effective January 1, 2025. The price increase is to offset rising input costs.

  • Nifty 50 was trading at 24,470.45 (-78.3, -0.3%) , BSE Sensex was trading at 81,121.71 (-168.3, -0.2%) while the broader Nifty 500 was trading at 23,169.30 (-87.1, -0.4%)

  • Market breadth is highly negative. Of the 1,930 stocks traded today, 597 were on the uptrend, and 1,282 went down.

Riding High:

Largecap and midcap gainers today include Bharti Airtel Ltd. (1,681.75, 4.4%), One97 Communications Ltd. (984.25, 3%) and Page Industries Ltd. (48,742.25, 2.8%).

Downers:

Largecap and midcap losers today include UCO Bank (46.89, -3.6%), Steel Authority of India (SAIL) Ltd. (124.76, -3.5%) and Indian Overseas Bank (55.68, -3.5%).

Crowd Puller Stocks

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

Top high volume gainers on BSE included KPR Mill Ltd. (1,080.35, 6.1%), Crisil Ltd. (5,817.75, 5.3%) and Westlife Foodworld Ltd. (813.75, 4.6%).

Top high volume loser on BSE was Glenmark Pharmaceuticals Ltd. (1,518.15, -1.1%).

BASF India Ltd. (5,675.50, 0.6%) was trading at 3.7 times of weekly average. JBM Auto Ltd. (1,763.25, 3.3%) and Star Cement Ltd. (229.96, 4.4%) were trading with volumes 3.6 and 3.6 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

13 stocks hit their 52 week highs, while 3 stocks tanked below their 52 week lows.

Stocks touching their year highs included - Crisil Ltd. (5,817.75, 5.3%), EID Parry (India) Ltd. (941.80, 0.0%) and HCL Technologies Ltd. (1,968.80, 1.7%).

Stocks making new 52 weeks lows included - Asian Paints Ltd. (2,407.65, 0.8%) and IndusInd Bank Ltd. (986.65, -1.1%).

9 stocks climbed above their 200 day SMA including Westlife Foodworld Ltd. (813.75, 4.6%) and Star Cement Ltd. (229.96, 4.4%). 42 stocks slipped below their 200 SMA including Archean Chemical Industries Ltd. (669.30, -3.5%) and NMDC Ltd. (233.73, -2.9%).

 
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The Baseline
13 Dec 2024
The winners and losers of 2024 | Screener: Consistent share price gainers over five years
By Swapnil Karkare

It's December, which means that analysts are scrambling over each other to predict the market's path for the next year. Morgan Stanley for instance, forecasts that the Sensex will touch 1,05,000 in 2025.

Morgan Stanley was quite gung-ho about the Sensex in December 2023 as well, and predicted 86,000 for 2024. The index only briefly flirted with the 86,000 level this year but then tumbled.

Humans are bad at guessing the future. In 1924 for example, people predicted that food would be unaffordable in 2024 - "milk will be served with a medicine dropper and an egg will be the price of a woman’s love.” So at least Morgan Stanley has been a bit more accurate.

The market saw a lot of volatility this year. Financial and industrial stocks surged while auto and FMCG stocks tanked. Signs of the economy slowing down and a sell-off by foreign investors led to a correction in September.

But certain stocks emerged as the clear winners of 2024, even as others struggled. This saw different company CEOs saying very different things about the 2025 outlook. For example PB Fintech, one of the top gainers, has been quite optimistic, saying, “We are not seeing any signs of a slowdown yet.” On the other hand, Asian Paints, one of the top losers, has been more guarded, with CEO Amit Syngle stating, “We are being cautious about demand because we feel that other consumer industries have seen challenging demand conditions.”

Why are some companies still doing well, while others struggled? We take a closer look at the top winners and losers in the Nifty 200 index.

In this week's Analyticks,

  • The top ten: Winners and losers of 2024
  • Screener: Consistent Highest Return Stocks over Five Years 

The Fundamentals vs. Valuations struggle

Fundamentals matter! Investors pay especially close attention to company financials in volatile markets. As a result, companies with strong fundamentals (reflected by Trendlyne Durability Scores above 60) saw skyrocketing prices.The laggards tended to have poor durability scores.

Even after market corrections, fundamentals have continued to drive stock performance—for instance, the rise of BSE Ltd. and the fall of Bajaj Auto.

However, stretched valuations among top gainers hint at either peaking prices or a TINA (There Is No Alternative) problem within sectors. Investors may be piling into these stocks due to a lack of better options, despite high valuations.

Let us dive into the top gainers and losers of 2024. Within each top ten list, we look more closely at the top five winners and losers.

Top Gainers: These stocks got a boost from strong financials, and a booming sector story

Oracle Financial Services Software

Oracle has benefitted from a surge in technology spending by banks – a 7% increase among the top 5 US banks, which are embracing GenAI. Oracle generates 90% of its revenue from product licenses, including solutions like Oracle FLEXCUBE Universal Banking. 

It reported 18% YoY growth in revenue and a 38% YoY jump in net profits in Q2FY25. Oracle Corp, its parent company in the US, has also outperformed major tech giants like Microsoft, Apple, and Salesforce this year.

PB Fintech

PB Fintech, the parent company of Policybazaar and Paisabazaar, has shifted towards Unit Linked Insurance Plans (ULIPs). This pivot, along with strong insurance renewals have helped it beat challenges in the credit business. Revenue increased 47% YoY in H1FY25. 

Revenue from new businesses - such as corporate insurance, an agent aggregator platform, and the UAE retail insurance - surged 87% YoY in Q2FY25. The company has secured the account aggregator (NBFC-AA) license from the RBI, adding another growth lever.

Dixon Technologies

Dixon Technologies has evolved from manufacturing LED TVs to becoming a one-stop shop for electronics manufacturing services (EMS) in India. It manufactures mobile phones, refrigerators, wearables, and lighting products and is now venturing into laptops and IT hardware manufacturing. Its big-name partners include Xiaomi, Samsung, Apple, Nokia, Motorola, Panasonic, Acer and Bosch. 

With revenue growth of more than 200% YoY in H1FY25, Dixon's mobile and EMS division is the fastest-growing segment. It is one of the key beneficiaries of the government’s Production-Linked Incentive (PLI) scheme. Its revenue has surged from over Rs. 12,000 crore in FY23 to nearly the same in Q2FY25 alone.

Rail Vikas Nigam Ltd. (RVNL)

RVNL has won some coveted railway projects, including the Nagpur metro, infrastructure work in the Central zone, an EPC contract in Maharashtra, and much more. It has expanded internationally through projects in Saudi Arabia, Botswana, Dubai, Uzbekistan and the Maldives. 

The company's inclusion in the MSCI India Index has attracted foreign investors, increasing FII shareholding from 2% to 5% last year. However, its revenue and profit have declined by 13% YoY and 26% YoY in H1FY25, raising doubts over its ability to keep the rally going.

Cochin Shipyard

The government's push for indigenous defence manufacturing has given Cochin Shipyard a big boost, with defence contracts making up 70% of its order book. It can now build and repair larger vessels such as LNG carriers and new-generation aircraft carriers. 

It booked solid growth in revenue and net profits of 26% YoY and 30% YoY in H1FY25. It has a total order book of Rs. 22,500 crore, a shipbuilding pipeline worth Rs. 7,800 crore, and mid-stage proposals valued at Rs. 30,000 crore.  

Top Losers: The backbenchers of 2024

Vodafone Idea

Having Vodafone Idea in your portfolio feels like a recipe for heartburn. Each year, the company sees a rollercoaster of highs and lows, where brief moments of optimism are interrupted by more challenges. The company's debt pile of over Rs. 2 lakh crore has been worsened by negative equity. From 22.75 crores in September 2023 to 21.25 crores in September 2024, its subscriber count has reduced year after year. 

Brokers highlight that the financial position will become more vulnerable once AGR dues become payable from FY26 onwards. According to Kotak Institutional Equities, the company is staring at a cash shortage of Rs. 10,400 crore over FY25-27 and Rs. 74,000 crore during FY28-32. 

IndusInd Bank

The banking sector faces pressures from rising stress in unsecured lending and microfinance portfolios. IndusInd Bank pushed microfinance loans aggressively in recent quarters, and these now account for 9% of IndusInd’s loan book as of September 2024. The gross NPAs in this segment have jumped from 5.16% in Q1FY25 to 6.54% in Q2FY25. That has led to a 39% YoY drop in net profit of Q2FY25. 

The bank faces a long road to recovery. Although other banks are also stretched, the impact on credit costs for IndusInd is higher (140 bps vs. 50-60 bps), according to Macquarie Capital. Analysts expect microfinance stress to remain high even in Q3. 

Asian Paints

A once-star consumer play is struggling with weak demand, rising raw material costs, and unseasonal rainfall, which have impacted the paint industry and affected revenues, margins and profits.

Rising competition within the paint industry has also eroded the market share of Asian Paints. Sales and profits have been declining year-on-year for the last three quarters. FIIs have been exiting from this stock gradually, from over 20% in FY22 to 17% in FY23 to 15% in September 2024. 

Bandhan Bank

Despite impressive revenue growth averaging 22% YoY, Bandhan Bank's asset quality problem has raised its ugly head again, with gross NPAs rising from 3.8% in Q4FY24 to 4.7% in Q2 FY25.

Impressive loan book growth has delivered over 30% YoY net profit growth in the last four quarters. However, weakness in its microfinance portfolio and governance-related issues have taken a toll on the stock prices. Recently, ICRA downgraded the non-convertible debentures (NCDs) to AA- from AA. 

Adani Total Gas

Adani Total Gas saw a steady 5-10% YoY revenue growth over the past year. However, after four consecutive quarters of double-digit net profit growth, the company's Q2FY25 net profit increased by a modest 7%. Due to limited availability, the government has reduced the allocation of Administrative Price Mechanism (APM) gas to City Gas Distribution (CGD). Adani Total Gas has seen a 13% reduction in its allocations, which will affect its financials.

The controversies have also left it limping. The Hindenburg report and the US bribery case have negatively impacted Adani Group stocks, discouraging foreign investors. Foreign shareholding has declined from 17% in September 2022 to 13% in September 2024.

2024 was a sector story

In 2024, sectors such as insurance, chemicals, construction materials, FMCG and private sector banks have lagged the index, especially after recent market corrections. But sectors like durables, industrials, financial services, realty, healthcare, technology, and public sector banks have shown resilience and growth. 

Improving capital expenditure spending has raised the growth outlook across some industries. A stronger US economy and the China plus one strategy has raised the export potential for Indian manufacturers in pharma, chemicals and IT. However, depressed demand and stagnant incomes have put pressure on consumer, microfinance and auto. 

2025 comes with a new US administration, continuing chaos in the Middle East, and a new RBI governor. Can Sensex touch 1,05,000 next year, or will the predictors be crying into their cups? We shall see.

Screener: Consistent Highest Return Stocks over Five Years

Electrical equipment stocks have the highest price growth in five years

The Indian stock market has been facing pressure for a few months now due to an increase in inflation, global conflicts, and high foreign institutional investor (FII) selloff. This week, we ook at stocks that have given consistently high returns over the last five years. This screener shows stocks which saw the highest performance in the past 5 years while also rising in the past one or two years.

The screener majorly consists of stocks from the heavy electrical equipment, electric utilities, industrial machinery, iron & steel products, and IT consulting & software industries. The most notable stocks appearing in the screener are CG Power & Industrial Solutions, Elecon Engineering, HBL Power Systems, RattanIndia Enterprises, Mazagon Dock Shipbuilders, BSE, Jupiter Wagons, and Suzlon Energy.

CG Power & Industrial Solutions has the highest 5-year price change of 6,461.3% among Nifty 500 stocks in the screener. This heavy electrical equipment company has continued to rise by 75.3% over the past year despite poor market conditions. It has recovered from a sharp decline in revenue and net profit during the Covid lockdown and has achieved its pre-Covid levels of Rs 8,152.2 crore and Rs 1,427 crore, respectively in FY24. On the other hand, it has posted a net loss during FY16-20 which rose sharply to first a net profit of Rs 1,427 crore in FY24. Consistently falling raw material costs and the company’s efforts to reduce procurement and production expenses helped in net profit growth.

Elecon Engineering comes in next with a 4,167.4% growth in its stock price over the last five years. This industrial machinery stock has continued to grow by 41% in the past year. It has given a moderate revenue CAGR growth of 9% over the last five years due to the effect of the lockdown, however, over the past three years, its CAGR growth has rebounded to 23.6%. Similarly, its net profit gave a net profit CAGR of 38.4% over the last five years compared to a CAGR of 83.4% over the past three years. The company took strong measures to curb expenses during the Covid period which has helped it to achieve its highest operating profit margin of 24% in FY24, contributing to net profit growth.

You can find some popular screeners here.

 
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The Baseline
12 Dec 2024
By Aditi Priya

Looking at Q2FY25 shareholding data, some companies stand out with significant increases in public shareholding and foreign institutional investments (FIIs). More retail investors are actively participating in the market, marking a big shift in how Indians invest. The total number of demat accounts in India has surged to 18.2 crore as of November 2024 increasing by 34.8% YoY. This represents an addition of 31.7 lakh demat accounts in November. 

Retail investors were net buyers in the Indian equity market, even during the market correction in October and November. A  report by Motilal Oswal says that India is set to grow strongly in the next decade, driven by favourable demographics and rising income. “Over the next decade, the demographic dividend will accelerate,” the analysts wrote, “with over 100 million people joining the workforce and about 100 mn households entering the middle-income class.” 

In this chart of the week, we analyze companies where public shareholding has increased or decreased the most over the past quarter and examine the reasons behind these changes.

Retail investors and FIIs have been favouring stocks from the banking and finance sector. In this sector, retail investors have increased their stakes in companies like RBL Bank, Ujjivan Small Finance Bank, Equitas Small Finance Bank, and Angel One. Meanwhile, FIIs have raised their holdings in stocks such as Indian Energy Exchange, Nuvama Wealth, and PNB Housing Finance.

Outside banking, sectors like cement & construction and software & services have seen a rise in public shareholding. Retail investors have reduced their stakes in FMCG, media, realty, and general industries.

RBL Bank & GMR Airports see public shareholding jump in Q2FY25

RBL Bank (RBL) witnessed a 7.5 percentage points QoQ increase in public shareholding by retail investors during the second quarter as Foreign Portfolio Investors (FPIs) reduced their stake to 13.6% from 27.1% in June. The bank reported a 19.9% YoY growth in revenue in Q2FY25, with net interest income rising by 9% YoY and deposits by 20% YoY. 

The cement & construction company, GMR Airports saw a 5.5 percentage points QoQ increase in its public shareholding. FPIs have reduced their stake in the company by more than 10 percentage points.  

Ujjivan Small Finance Bank (SFB) saw a 4.9 percentage points QoQ increase in public shareholding during the past quarter, bringing total public holding to nearly 73%. FPIs sold 2.3 percentage points stake while mutual funds and insurance companies sold marginal stakes. In Q2FY25, the bank reported a 15.2% YoY revenue growth, with deposits increasing by 17% and the CASA ratio improving 26% to 25.9%. On November 27, Ujjivan SFB announced the sale of a stressed loan portfolio, including written-off loans worth Rs 270.4 crore (as of September 30, 2024). The sale reflects a positive move as it reduces the burden of non-performing assets, improving financial stability.

Equitas Small Finance Bank and Angel One also witnessed a nearly 4.5 percentage point QoQ increase in public shareholding. In case of Equitas, mutual funds like Franklin India, Nippon life india, Invesco india and Dsp Mutual Fund have reduced their stake marginally. Similarly, in Angel One, Nippon Life India trustee growth fund, Motilal Oswal Large and Midcap Fund and FPIs have reduced their stakes. 

Public shareholding moves in contrast with FII holdings

The screener reveals another interesting trend - an increase in public shareholding often coincided with a decrease in FII stakes, and vice versa, in Q2FY25. Sterling and Wilson is the only company where public shareholding, DII, and FII holdings all increased in the past quarter as the promoter holdings reduced by over 7 percentage points. The company posted a 113% YoY net profit growth, and a 37% YoY revenue growth in Q2FY25. 

In the banking and finance sector, public shareholding decreased in Indian Energy Exchange, Nuvama Wealth, and PNB Housing Finance, while FII holdings rose. Nuvama Wealth saw a 6.7 percentage point QoQ drop in public shareholding, offset by a 7.1 percentage point QoQ  rise in FII holdings. The company's promoter group (Pagac Ecstasy) marginally reduced its stake by 0.5 percentage points, while funds like Smallcap World and Morgan Stanley increased their holdings. This shift likely reflects institutional confidence in the company’s growth prospects. 

PNB Housing Finance also saw a 13.7 percentage points QoQ decrease in public shareholding, while the FIIs increased their stakes by 4.3 percentage points over the past quarter. The Government of Singapore and the Monetary Authority of Singapore increased their stake by 5 percentage points and 1.3 percentage points respectively while Asia Opportunities v reduced its stake by 3.7 percentage points. Mutual funds like HSBC Small Cap fund, Nippon India Small Cap Fund, Aditya Birla Sun Life PSU equity fund and Hdfc Large and Mid cap fund have also increased their stake along with the FIIs. 

Honasa Consumer, a personal products company, witnessed a 5.4 percentage point QoQ decline in public shareholding during the past quarter. At the same time, FPIs increased their stake significantly by over 5 percentage points. Mutual funds also raised their holdings, marginally, by 0.3 percentage points.

 
Trendlyne Marketwatch
Trendlyne Marketwatch
12 Dec 2024
Market closes lower, Gland Pharma gets US FDA nod for Phytonadione Injectable ampules
By Trendlyne Analysis

Nifty 50 closed at 24,548.70 (-93.1, -0.4%), BSE Sensex closed at 81,289.96 (-236.2, -0.3%) while the broader Nifty 500 closed at 23,256.40 (-101.8, -0.4%). Market breadth is moving down. Of the 2,275 stocks traded today, 664 were gainers and 1,588 were losers.

Indian indices closed in the red, with the benchmark Nifty 50 index closing at 24,548.7 points. The Indian volatility index, Nifty VIX, fell 0.6% and closed at 13.2 points. Shakti Pumps (India) closed deep in the green as it received a contract worth Rs 754.3 crore from Maharashtra State Electricity Distribution Company (MSEDCL).

Nifty Midcap 100 and Nifty Smallcap 100 closed lower. Nifty IT and Nifty Metal closed in the green. According to Trendlyne’s sector dashboard, Forest Materials emerged as the best-performing sector of the day, with a rise of 3.4%.

European indices are trading in the green. Major Asian indices closed mixed. US index futures are trading in the red, indicating a cautious start to the trading session as CPI inflation rises to 2.7% in November from 2.6% in October.

  • Dehlivery sees a long buildup in its December 26 futures series, with open interest increasing by 36.8% and a put-call ratio of 0.2.

  • GHCL surges to its all-time high of Rs 759.4 as it receives environmental clearance from the Ministry of Environment, Forest and Climate Change (MoEFCC) for its soda ash greenfield project in Kutch, Gujarat.

  • Gopal Snacks falls sharply as it faces disruption following a major fire at its Rajkot facility. The company announces that it has ramped up operations at the Modasa and Nagpur plants and is collaborating with third-party manufacturers for additional capacity.

  • BOB Capital Markets downgrades Ajanta Pharma to 'Sell' from 'Buy' with a lower target price of Rs 2,528 per share. This indicates a potential upside of 9.9%. The brokerage is negative on the stock due to its plans to avoid diversifying into newer therapies in India over the next two years and lower EBITDA margin compared to its domestic-focused peers. It expects the firm's revenue to grow at a CAGR of 10.8% over FY25-26.

  • Aye Finance, a non-banking finance company focused on SMEs, plans to raise up to Rs 1,450 crore through an initial public offering (IPO). The IPO will consist of a fresh issue of equity shares worth up to Rs 885 crore and an offer for sale (OFS) amounting to Rs 565 crore.

  • One MobiKwik Systems' Rs 572 crore IPO receives bids for 13.2X the available 1.2 crore shares on offer on the second day of bidding. The retail investor quota gets bids for 45.2X the available 21.6 lakh shares.

  • Vishal Mega Mart's Rs 8,000 crore IPO receives bids for 1X the available 75.7 crore shares on offer on the second day of bidding. The retail investor quota gets bids for 0.9X the available 37.8 crore shares.

  • Tata Consultancy Services (TCS) rises as it extends its partnership with Telenor Denmark. TCS inks a five-year deal to manage Telenor's IT infrastructure, using advanced automation to enhance operations and user experiences.

  • Britannia Industries is falling after CEO Rajneet Kohli warns of challenging quarters ahead. He notes the impact of persistent inflation on the industry, with improved rural demand but slower urban growth expected to continue for 1-2 quarters. Britannia has raised prices on biscuits, rusks, and cakes amid rising input costs, with further hikes planned for the January-March quarter.

  • ACME Solar Holdings rises as it secures a 250 MW renewable energy project at Rs 4.56/unit in NHPC’s e-reverse auction. The project includes a greenshoe option, potentially expanding capacity to 500 MW as part of a 1,200 MW initiative.

  • Gland Pharma is rising as it receives approval from the US FDA for its Phytonadione Injectable Emulsion ampules, used to treat coagulation disorders caused by vitamin K deficiency. The product is equivalent to Hospira's Vitamin K1 injectable emulsion, with an estimated market size of $15 million in the year ending September 2024, according to IQVIA.

  • Indian Railway Finance Corp is falling as it receives a Goods & Services Tax (GST) demand order worth Rs 230.6 crore from the Office of the Assistant Commissioner (ST).

  • Analysts expect India's retail inflation to ease in the range of 5.4-5.8% in November, following a rise to 6.2% in October. Barclays sees signs of economic momentum, suggesting that inflation has peaked. The firm anticipates a potential 25 basis points cut in the policy repo rate by the Monetary Policy Committee in February, depending on the inflation outlook and its impact on economic growth.

  • Neuland Laboratories is falling as 4.9 lakh shares (3.8% stake), worth approximately Rs 780.3 crore, reportedly change hands in a block deal at an average price of Rs 15,900 per share. Smallcap World Fund is likely the seller in the transaction.

  • Shriram Finance is falling as it sells its entire 84.4% stake in its subsidiary, Shriram Housing Finance, to Warburg Pincus-owned Mango Crest Investment for a total consideration of Rs 3,929 crore.

  • Nuvama Wealth Management falls sharply as 30 lakh shares (8.4% stake), worth Rs 2,100 crore, reportedly change hands in a block deal at an average price of Rs 7,025 per share. Edel Finance Company and Ecap Equities are the likely sellers in the transaction.

  • Macquarie maintains its 'Outperform' rating on Delhivery with a target of Rs 460. The brokerage notes the company's target to increase market share through pricing strategies. It believes the threat posed by quick commerce (QC) to e-commerce companies is exaggerated. Macquarie expects the scaling up of part truckload (PTL) business to enhance operational efficiencies.

  • Shakti Pumps (India) rises to its 5% upper limit as it receives a contract worth Rs 754.3 crore from Maharashtra State Electricity Distribution Company (MSEDCL). The contract involves the design, manufacture, supply, transport, installation, testing, and commissioning of 25,000 standalone off-grid DC solar photovoltaic water pumping systems (SPWPS) under the Magel Tyala Saur Krushi Pump Scheme.

  • Waaree Energies rises as it receives a letter of award (LoA) from Rewa Ultra Mega Solar (RUMSL) to develop a 170 MW solar plant in Madhya Pradesh. The project will supply energy to Madhya Pradesh Power Management Company and Indian Railways through the titer-state transmission system (ISTS).

  • Reliance Power is rising as its subsidiary, Reliance NU Suntech, secures a 930 MW solar energy contract from the Solar Energy Corporation of India (SECI). The company will also install a 465 MW battery energy storage system (BESS).

  • Morgan Stanley sees green shoots in India's steel industry in 2025 and anticipates price growth. It maintains an 'Overweight' rating on JSW Steel and Jindal Steel & Power, 'Equal-weight' on Tata Steel, and an 'Underweight' rating on SAIL. The brokerage forecasts a 7% growth in steel demand in FY26 and an increase in domestic prices as the gap with global prices narrows. Morgan Stanley notes the pace of demand recovery in China will be a key factor.

  • PC Jeweller is rising as its board of directors approves the preferential issue of 5.2 crore shares worth up to Rs 1,510 crore at an issue price of Rs 292 per share. The company will use these funds to partially settle outstanding debts.

  • Sammaan Capital is rising as its board of directors approves raising funds worth Rs 2,500 crore through a qualified institutional placement (QIP) of equity shares.

  • Afcons Infrastructure is rising as its joint venture (JV), Afcons – Hindustan, emerges as the lowest bidder (L1) for a water supply project worth Rs 503.9 crore. The project, awarded under the Jal Jeevan Mission by the Government of Rajasthan, aims to provide water supply to 353 villages in Dungarpur district.

  • Godawari Power & Ispat is rising as it signs an agreement with GAIL (India) to supply regasified liquefied natural gas (RLNG) to its upcoming pellet plant over seven years.

  • Nifty 50 was trading at 24,650.65 (8.9, 0.0%), BSE Sensex was trading at 81,493.23 (-32.9, 0.0%) while the broader Nifty 500 was trading at 23369.15 (11, 0.1%).

  • Market breadth is in the green. Of the 1,943 stocks traded today, 1,059 were gainers and 839 were losers.

Riding High:

Largecap and midcap gainers today include Adani Green Energy Ltd. (1,217.95, 6.1%), Adani Power Ltd. (539.85, 4.0%) and Adani Energy Solutions Ltd. (818.15, 3.4%).

Downers:

Largecap and midcap losers today include Jubilant Foodworks Ltd. (672.10, -5.0%), Indus Towers Ltd. (343.85, -4.4%) and Syngene International Ltd. (870.05, -3.8%).

Movers and Shakers

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

Top high volume gainers on BSE included Chalet Hotels Ltd. (1,017, 9.7%), Star Cement Ltd. (220.24, 9.5%) and Adani Green Energy Ltd. (1,217.95, 6.1%).

Top high volume losers on BSE were National Aluminium Company Ltd. (230.78, -7.5%), Nuvama Wealth Management Ltd. (6,945.40, -4.8%) and Network18 Media & Investments Ltd. (74.19, -4.1%).

Tata Teleservices (Maharashtra) Ltd. (85.39, 5.6%) was trading at 16.7 times of weekly average. Century Plyboards (India) Ltd. (852.65, 4.7%) and Gland Pharma Ltd. (1,772, -0.2%) were trading with volumes 12.0 and 8.1 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

24 stocks made 52 week highs, while 2 stocks were underachievers and hit their 52 week lows.

Stocks touching their year highs included - eClerx Services Ltd. (3,829.95, 0.9%), EID Parry (India) Ltd. (941.75, 3.4%) and Firstsource Solutions Ltd. (383.70, 0.3%).

Stocks making new 52 weeks lows included - Asian Paints Ltd. (2,389.55, -1.2%) and ZF Commercial Vehicle Control Systems India Ltd. (11,699, -0.6%).

8 stocks climbed above their 200 day SMA including Star Cement Ltd. (220.24, 9.5%) and Tata Teleservices (Maharashtra) Ltd. (85.39, 5.6%). 20 stocks slipped below their 200 SMA including Hatsun Agro Products Ltd. (1,080, -4.9%) and Indus Towers Ltd. (343.85, -4.4%).

 
Trendlyne Marketwatch
Trendlyne Marketwatch
11 Dec 2024
Market closes higher, UGRO Capital secures a patent for its GRO Score credit scoring model
By Trendlyne Analysis

Nifty 50 closed at 24,641.80 (31.8, 0.1%), BSE Sensex closed at 81,526.14 (16.1, 0.0%) while the broader Nifty 500 closed at 23,358.15 (43.3, 0.2%). Market breadth is neutral. Of the 2,279 stocks traded today, 1,167 showed gains, and 1,088 showed losses.

Indian indices closed in the green, with the benchmark Nifty 50 index closing at 24,641.8 points. The Indian volatility index, Nifty VIX, fell 3.7% and closed at 13.3 points. Vishal Mega Mart's Rs 8,000 crore IPO received bids for 0.4X the available 75.7 crore shares on offer on the first day of bidding. The retail investor quota got bids for 0.5X the available 37.8 crore shares.

Nifty Midcap 100 and Nifty Smallcap 100 closed higher. Nifty Realty and Nifty Consumer Durables closed in the green. According to Trendlyne’s sector dashboard, Hardware Technology & Equipment emerged as the best-performing sector of the day, with a rise of 3.2%.

European indices are trading mixed. Major Asian indices closed mixed. US index futures are trading mixed, indicating a cautious start to the trading session as markets await the consumer price index (CPI) inflation print. CPI inflation is expected to rise to 2.7% in November from 2.6% in October.

  • Money flow index (MFI) indicates that stocks like Varroc Engineering, Asahi Glass, Trident, and eClerx Services are in the overbought zone.

  • Inox Green Energy Services is rising as it expands into the solar energy business through Inox Solar. Inox Solar plans an initial capacity of 5 GW of solar modules and 2.5 GW of solar cell manufacturing capacity by 2026 with a capex of Rs 1,500 crore.

  • DEE Development Engineers is rising as it secures a purchase order worth $16.5 million (approximately Rs 140 crore) from a new customer to supply prefabricated pipe spools.

  • UGRO Capital receives a patent for its proprietary credit scoring model, GRO Score. The patent, Method and System for Modelling Credit Scorecards, highlights the company’s approach to credit evaluation for underserved borrowers.

  • Tesla is reportedly in early talks with a real estate firm to secure a location in New Delhi. The company seeks 3,000-5,000 square feet for its showroom, a larger space for delivery and service operations, and a consumer experience centre. In April, CEO Musk had planned to meet Prime Minister Modi during an India trip, which was later cancelled.

  • One MobiKwik Systems' Rs 572 crore IPO receives bids for 4.5X the available 1.2 crore shares on offer on the first day of bidding. The retail investor quota gets bids for 18.3X the available 21.6 lakh shares.

  • Vishal Mega Mart's Rs 8,000 crore IPO receives bids for 0.3X the available 75.7 crore shares on offer on the first day of bidding. The retail investor quota gets bids for 0.4X the available 37.8 crore shares.

  • Infosys is rising as its joint venture (JV) with Temasek, Infosys Compaz, partners with Singapore-based StarHub to accelerate operations and drive innovation. Infosys Compaz will transform the company into a cloud-based enterprise, focusing on AI, cloud technology, cybersecurity, and digital change.

  • Jefferies maintains its 'Buy' rating on State Bank of India, with a target price of Rs 1,030. The brokerage highlights the bank's strong asset quality and robust earnings outlook. It adds that the bank is well-positioned to manage interest rate cuts, given that its loans are linked to the marginal cost of funds-based lending rate (MCLR).

  • Hinduja Global Solutions is rising as its arm, HGS CX Technologies' board of directors, approves the merger of five of its US subsidiaries with itself. The merging subsidiaries include Hinduja Global Solutions LLC, HGS Digital LLC, HGS (USA) LLC, HGS Canada Holdings LLC, and Teklink International LLC.

  • PNC Infratech surges as its subsidiary, Hathras Highways, completes a Rs 738 crore highway project in Uttar Pradesh, involving the four-laning of NH-530B. The project was completed on October 31, 2024, well ahead of its December 31 deadline.

  • Aurionpro Solutions is rising as it signs a deal with one of the largest banks in the Kingdom of Saudi Arabia (KSA) to modernise its corporate banking technology using Aurionpro’s global transaction banking platform, iCashpro+.

  • Swiggy declines over 3% as the one-month lock-in period for anchor investors expires today. Approximately 6.5 crore shares (3% stake) of the company are eligible for trading, giving anchor investors the option to offload up to 50% of their holdings if required. The lock-in period for the remaining 50% of shares held by anchor investors will end on February 9, 2025.

  • Housing and Urban Development Corp (HUDCO) signs a memorandum of understanding (MoU) with Delhi Development Authority (DDA) to organise capacity-building programmes for DDA officials. The company will also provide consultancy for residential, commercial, institutional, residential & commercial, and institutional projects undertaken by the DDA.

  • BEML rises sharply as it secures a Rs 136 crore contract from the Defence Ministry to supply high-mobility vehicles for the battlefield surveillance system (BFSS). The vehicles will feature advanced designs and operate efficiently in extreme terrains and altitudes.

  • Bharat Global Developers rises to its 5% upper limit as it secures a Rs 650 crore contract from Tata Agro & Consumer Products. The contract involves the annual supply of premium agricultural commodities, including tea leaves, coffee beans, organic pulses, and dry fruits.

  • Adani Ports & Special Economic Zone announces it will finance the Colombo West International Terminal project in Sri Lanka using its internal accruals, opting out of US DFC funding. Adani Group received $553 million (approximately Rs 4,600 crore) in funding last year from the US International Development Finance Corporation for this project.

  • Geojit BNP Paribas upgrades Britannia Industries to 'Buy' from 'Hold' but lowers the target price to Rs 5,290 per share. This indicates a potential upside of 8.5%. The brokerage believes that despite high inflation, the company's ability to balance volume growth with pricing strategy and optimise its distribution network will drive profitability. It expects the firm's revenue to grow at a CAGR of 8.9% over FY25-26.

  • Saakshi Medtech & Panels surges as it secures a Rs 250 crore letter of business award (LoBA) from Mahindra & Mahindra. The five-year contract, valid until 2029, involves supplying EV panels with a three-year warranty.

  • LTIMindtree enters a partnership with GitHub to develop AI-driven software engineering. This partnership will utilise GitHub's development operations (DevOps) AI-driven pair programming with LTIMindtree's knowledge in digital engineering and AI transformation to drive enterprise innovation.

  • Avenue Supermarts (DMart) is falling as Goldman Sachs reiterates its ‘Sell’ rating and cuts the target price to Rs 3,425. The brokerage is bearish on the company due to increasing competition. It adds that DMart lacks an advantage in fresh food in urban areas, and much of India’s grocery market is beyond its reach.

  • Reports suggest that 85.3 lakh shares (12% equity) worth Rs 606 crore of Awfis Space Solutions have changed hands in a block deal. Promoter Peak XV Partners Investments and shareholders Bisque and Link Investment Trust are likely the sellers in the transaction.

  • NTPC Green Energy is rising as its wholly-owned subsidiary, NTPC Renewable Energy, secures a 500 MW solar power project from the Solar Energy Corporation of India (SECI). The project includes the development of a 250 MW/1000 MWh Energy Storage System (ESS) alongside the solar capacity.

  • Indian Overseas Bank is rising as it receives a tax refund order worth Rs 1,359.3 crore from the Income Tax (IT) Department for the assessment year FY16.

  • HG Infra Engineering is rising as it receives a letter of acceptance (LoA) worth Rs 763.1 crore from the Ministry of Road Transport and Highways (MoRTH). The project involves upgrading National Highway 227B, from Bahuvan Madar Majha to Jagarnathpur in Uttar Pradesh, to a two-lane road with paved shoulders.

  • Nifty 50 was trading at 24,616 (6.0, 0.0%) , BSE Sensex was trading at 81,568.39 (58.3, 0.1%) while the broader Nifty 500 was trading at 23,332.80 (17.9, 0.1%)

  • Market breadth is ticking up strongly. Of the 1,962 stocks traded today, 1,410 were on the uptrend, and 508 went down.

Riding High:

Largecap and midcap gainers today include Indian Railway Finance Corporation Ltd. (164.91, 5.1%), Tata Communications Ltd. (1,839.95, 3.7%) and Dalmia Bharat Ltd. (1,964, 3.4%).

Downers:

Largecap and midcap losers today include Avenue Supermarts Ltd. (3,708.30, -2.9%), Adani Green Energy Ltd. (1,148.05, -2.4%) and Indian Bank (583.15, -2.3%).

Volume Shockers

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

Top high volume gainers on BSE included PNC Infratech Ltd. (347.90, 12.4%), Jupiter Wagons Ltd. (552.30, 11.1%) and Jubilant Ingrevia Ltd. (849.95, 8.2%).

G R Infraprojects Ltd. (1,612, 0.0%) was trading at 10.2 times of weekly average. Titagarh Rail Systems Ltd. (1,312.85, 6.6%) and Prism Johnson Ltd. (196.63, 2.3%) were trading with volumes 10.1 and 9.8 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

16 stocks hit their 52 week highs, while 1 stock tanked below their 52 week lows.

Stocks touching their year highs included - Bajaj Holdings & Investment Ltd. (11,167.75, -0.3%), EID Parry (India) Ltd. (911, -0.6%) and Indian Hotels Company Ltd. (836.40, -0.3%).

Stock making new 52 weeks lows included - ZF Commercial Vehicle Control Systems India Ltd. (11,763.65, -2.0%).

20 stocks climbed above their 200 day SMA including Jupiter Wagons Ltd. (552.30, 11.1%) and Titagarh Rail Systems Ltd. (1,312.85, 6.6%). 15 stocks slipped below their 200 SMA including Trident Ltd. (36.68, -2.3%) and Cera Sanitaryware Ltd. (7,803.50, -2.0%).

 
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The Baseline
11 Dec 2024
Five stocks to buy from analysts this week - December 11, 2024
By Ruchir Sankhla

1. Tata Power:

Motilal Oswal reiterates a ‘Buy’ rating on this electric utilities company with a target price of Rs 509, indicating an upside potential of 17%. Analysts Abhishek Nigam and Preksha Daga note that Tata Power plans a capex of Rs 1.5 lakh crore over the next five years, approximately three times the capex incurred over the last five years. As part of this, the company has revised its annual capex guidance for FY26-27 to Rs 25,000-26,000 crore, up from the earlier range of Rs 22,000-23,000 crore.

The analysts highlight that the company expects to double its transmission and distribution capacity to 10,500 circuit kilometers (cKm) by FY30, up from the current 4,633 cKm. The operational green capacity target for 2030 has been increased to 23 GW from the earlier 20 GW. Meanwhile, the under-construction pipeline has significantly expanded to 10 GW, up from 3.7 GW previously.

Nigam and Daga note that the management plans to double its EBITDA and net profit to Rs 30,000 crore and Rs 10,000 crore by FY30, respectively. They expect a CAGR of 7.3% in net sales, 6% in EBITDA over FY25-27.

2. Supreme Industries:

Sharekhan retains its ‘Buy’ rating on this plastic products manufacturer with a target price of Rs 5,700, indicating an upside potential of 15.8%. In Q2FY25, the company reported a net profit decline of 15% YoY to Rs 206.6 crore. Revenue decreased 1.4% YoY to Rs 2,288 crore during the quarter. Regarding the results, analysts said, “Earnings were hit by the sharp fall in PVC prices, weak infrastructure demand and extended monsoons.”

Analysts note that the company is entering the gas piping market with an initial capacity of 3,000 tonnes per month, set to begin sales in the current quarter. The annual market size for gas pipes is estimated at 1 lakh tonnes. The company's total capital expenditure plan stands at Rs 1,500 crore. Plastic pipes capacity is set to increase to 8.4 lakh tonnes by FY25, up from 7.4 lakh tonnes in FY24.

Analysts mention that the management expects a revenue/net profit CAGR of 16%/18% over FY25-27. The brokerage notes healthy demand outlook and incremental capacity additions are likely to drive an 18% net earnings CAGR over FY25-27.

3. Dhanuka Agritech:

Axis Direct recommends a ‘Buy’ rating on this agrochemicals manufacturer with a target price of Rs 1,760, indicating an upside potential of 9.7%. Analysts Sani Vishe and Shivani More highlight that the company has recently shifted its outlook from negative to positive for FY25. The business has a portfolio of  approx. 90 products and a pan-India distribution network with around 6,500 distributors and dealers, along with 80,000 retailers.

In Q2FY25, Dhanuka Agritech’s revenue grew 5.9% YoY to Rs 654.3 crore, but missed Forecaster estimates by 1.3%. Analysts attribute the miss to around Rs 100 crore in sales returns from Q1 due to continuous rainfall in the months of August and September, which delayed the spraying of insecticide. However, with good reservoir levels and favorable groundwater conditions, Rabi acreages are expected to improve.

Initially, the management had anticipated a 100 bps YoY decline in margins for FY25. However, this outlook has now been revised to a 100 bps improvement, driven by positive market response to new product launches like Purge, LaNevo, and MYCORe SUPER.

Vishe and More expect that the company will deliver strong top-line and margin growth in FY25, driven by a robust product mix, improving prices, and a strong Rabi season. They expect the firm's revenue to grow at a CAGR of 17.3% over FY25-27.

4. Uno Minda:

Geojit BNP Paribas upgrades its rating to ‘Buy’ on this auto parts manufacturer with a target price of Rs 1,209. This indicates a potential upside of 13.4%. Uno Minda reported a 17.2% YoY revenue growth to Rs 4,245 crore in Q2FY25, driven by new customer additions in the 2-wheeler (2W) and 4-wheeler (4W) segments and leveraging its client base. EBITDA margin improved by 28 bps to 11.4%, supported by a superior product mix. The company’s management expects margins to remain in the 11-12% range in FY25, considering the ongoing capex and expansion efforts.

The automotive industry saw a 9% YoY increase in production volumes for Q2FY25, driven primarily by the 2W segment, which saw a 12.5% rise, reaching 62.6 lakh units. Analyst Saji John said, "The channel inventory correction has shown signs of improvement over the past two months, and we expect the auto industry to deliver stronger volume growth in the second half of the fiscal year compared to the first." 

The company is working on increasing its kit value across all segments by expanding capacity and forming partnerships, despite the slow growth in the EV market. It has partnered with Hyundai Mobis to manufacture automotive speakers and secured a significant order for EV charging solutions from a Japanese original equipment manufacturer (OEM). John expects a revenue CAGR of 24% and a net profit CAGR of 23.7% over FY25-27.

5. Sonata Software:

Emkay initiates a ‘Buy’ rating on this IT solutions provider with a target price of Rs 780, indicating an upside of 16.3%. The company’s international IT services business achieved a 26% revenue CAGR over FY21-24 and a 4.3% quarterly growth over the past 10 quarters. While revenue growth slowed in the last three quarters due to macro uncertainty, analysts Dipesh Mehta and Kevin Shah view this as a “temporary setback”. They expect strong growth as market conditions improve, with increased consumer spending anticipated in CY25.

Sonata Software has a long-standing partnership with Microsoft. Mehta and Shah believe the partnership gives SSOF an opportunity for growth within the Microsoft ecosystem. Sonata expects AI services to contribute 20% to the company’s revenue in the next three years.

Sonata aims for a revenue of $1.5 billion by FY27. The company’s focus on building a large-deal team has led to consistent growth in deals worth over $5 million, increasing from 10 in FY23 to 14 in FY24, and 6 in H1FY25. Analysts expect the company to return to top-quartile revenue growth as demand stabilizes.

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

(You can find all analyst picks here)

 
Trendlyne Marketwatch
Trendlyne Marketwatch
10 Dec 2024
Market closes flat, Shriram Pistons' arm to acquire TGPEL for Rs 220 crore
By Trendlyne Analysis

Nifty 50 closed at 24,610.05 (-9.0, 0.0%) , BSE Sensex closed at 81,510.05 (1.6, 0%) while the broader Nifty 500 closed at 23,314.90 (22.9, 0.1%). Market breadth is horizontal. Of the 2,283 stocks traded today, 1,081 were on the uptick, and 1,176 were down.

Indian indices closed flat, with the benchmark Nifty 50 index closing at 24,610 points. The Indian volatility index, Nifty VIX, declined 2.3% and closed at 13.8 points. The Centre appointed Sanjay Malhotra as the new Governor of the Reserve Bank of India, succeeding Shaktikanta Das, for three years, effective December 11.

Nifty Midcap 100 and Nifty Smallcap 100 closed in the green. S&P BSE SME IPO and Nifty Realty were among the top index gainers today. According to Trendlyne’s Sector dashboard, Forest Materials emerged as the best-performing sector of the day, with a rise of 4%.

Asian indices closed mixed while European indices are trading lower. US index futures traded in the red, indicating a cautious start to the trading session. Brent crude oil futures are trading in the red. Oracle reported Q2 revenue of $14.1 billion, a 9% YoY increase, although slightly below estimates. The company remains positive about the future, with CEO Safra Catz forecasting that total Oracle cloud revenue will exceed $25 billion in fiscal 2025.

  • Relative strength index (RSI) indicates that stocks like Coforge, Central Depository Services (India), PB Fintech, and Lemon Tree Hotels are in the overbought zone.

  • Shriram Pistons & Rings (SPRL) rises as its subsidiary, SPR Engenious, announces the acquisition of a 100% stake in TGPEL Precision Engineering for Rs 220 crore. The deal focuses on expanding SPRL’s product portfolio beyond ICE powertrains and is expected to be completed by December 2024.

  • Gujarat Gas is rising as it hikes industrial gas prices for its Morbi customers by Rs 2.3 per standard cubic metre (scm), bringing the price to Rs 47 per scm, effective December 11.

  • PG Electroplast closes its Rs 1,500 crore QIP offer of around 2.1 crore equity shares on December 9 at an issue price of Rs 699 per share. The issue price reflects a 0.9% discount to the QIP floor price.

  • Indraprastha Gas' 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.

  • Sharekhan believes the recent geopolitical developments in the Middle East, including the fall of the Syrian regime, could add uncertainty and risk premiums to crude oil prices. In addition, China’s shift in monetary policy will likely drive long-term growth in oil demand. While short-term factors like stimulus hopes and geopolitical risks could push oil prices to $72, the medium to long-term outlook remains bearish due to oversupply. The brokerage expects WTI crude to trade under $65 and Brent under $69 in H1CY25.

  • Alkem Laboratories' board of directors approves the transfer of its generics business to its subsidiary, Alkem Wellness, on a slump sale basis for a consideration of Rs 750 crore.

  • Syngene International is rising as 82.2 lakh shares (2% stake), worth approximately Rs 706 crore, reportedly change hands in a block deal at an average price of Rs 858.5 per share. Biocon is the likely seller in the transaction.

  • Torrent Power’s Rs 3,500 crore qualified institutional placement (QIP) gets oversubscribed 4X, receiving bids of Rs 14,000 crore. The company allotted 2.3 crore equity shares at Rs 1,503, offering a 3.4% discount to the floor price of Rs 1,555.8.

  • CLSA initiates an 'Outperform' rating on Swiggy with a target price of Rs 708. The brokerage is optimistic about the company, citing its strong growth potential in the large total addressable market (TAM) within the food delivery and quick commerce (QC) segments. It also anticipates improvements in execution, with accelerating growth and profitability. The brokerage projects the Indian quick commerce space to grow 6X between FY25-27.

  • Reliance Industries is reportedly in talks with banks for a $3 billion loan to refinance its $2.9 billion debt, including interest, due in 2025.

  • Religare Enterprises surges to its 5-year high of Rs 304.6 per share as the Reserve Bank of India (RBI) reportedly approves the Burman family's proposal to acquire an additional 26% stake in the company.

  • Greaves Cotton surges to its all-time high of Rs 245.8 after Vijay Kedia buys 12 lakh shares (0.5% equity) worth Rs 25 crore via a block deal. The transaction was executed at an average price of Rs 208.9 per share.

  • Mutual Funds' net equity inflows decline to Rs 60,295 crore in November, down from Rs 2.4 lakh crore in October, according to data released by the Association of Mutual Funds in India (AMFI). However, the net asset under management (AUM) of the MF industry increases to 68.1 lakh crore compared to Rs 67.3 lakh crore last month.

  • Tejas Networks signs a three-year contract with Vodafone Idea to supply its TJ1400 & TJ1600 network system packets and optical transmission products to improve Vodafone's backhaul capacity and boost network performance.

  • NBCC (India) secures an order worth Rs 432 crore from the Central University of Odisha. The company will provide project management consultancy (PMC) services for constructing a net-zero sustainable campus at the university's Sunabeda location.

  • Bharat Forge is rising as it raises Rs 1,650 crore through a qualified institutional placement (QIP) on Monday at an issue price of Rs 1,320 per share.

  • Anish Shah, MD & CEO of Mahindra Group, notes rural consumption, government spending, and private sector investments as key drivers for the group's expansive capex plans of around Rs 30,000 crore over three years. He highlights these investments will focus on electric vehicles, solar energy, and farm machinery. The group is also exploring opportunities in emerging areas - healthcare, drones, and consumer sectors, ensuring that new ventures align with the firm's strengths.

  • Axis Direct upgrades Dhanuka Agritech to 'Buy' from 'Hold' but lowers the target price to Rs 1,760 per share. This indicates a potential upside of 12.3%. The brokerage expects the company will deliver strong top-line and margin growth in FY25, driven by a robust product mix, improving prices, and a strong Rabi season. It expects the firm's revenue to grow at a CAGR of 17.3% over FY25-27.

  • GE Vernova T&D India rises to its new all-time high of Rs 1,980 as it receives an order worth approximately Rs 400 crore from Sterlite Power. The contract involves the supply and supervision of 765KV power transformers and reactors for the Khavda project.

  • DCM Shriram is rising as it enters an agreement with a special purpose vehicle (SPV), JSW Renew Energy Thirty Two, to set up a 68 MW wind-solar hybrid project to replace the existing 40 MW coal plant. The company will invest Rs 57.1 crore in the SPV.

  • The Centre’s Cabinet Appointments Committee appoints Sanjay Malhotra as the new Governor of the Reserve Bank of India, succeeding Shaktikanta Das, for three years, effective December 11.

  • Metropolis Healthcare's board approves the acquisition of Delhi NCR-based specialty cancer testing chain Core Diagnostics in a cash and stock deal worth Rs 246.8 crore.

  • Bharat Electronics rises as it bags orders worth Rs 634 crore to maintain the Akash missile system, telescopic sights for guns, communication equipment, jammers, and electric voting machines (EVMs), among others.

  • Vodafone Idea is rising as its board of directors approves issuing 175.5 crore shares worth Rs 1,980 crore through a preferential issue to its promoters, Omega Telecom Holdings and Usha Martin Telematics. Omega Telecom will invest up to Rs 1,280 crore, while Usha Martin will invest Rs 700 crore.

  • Nifty 50 was trading at 24,622.40 (3.4, 0.0%), BSE Sensex was trading at 81,575.96 (67.5, 0.1%) while the broader Nifty 500 was trading at 23,308.60 (16.6, 0.1%).

  • Market breadth is in the green. Of the 1,950 stocks traded today, 1,189 were in the positive territory and 723 were negative.

Riding High:

Largecap and midcap gainers today include Cholamandalam Investment & Finance Company Ltd. (1,336.30, 4.2%), FSN E-Commerce Ventures Ltd. (172.56, 3.9%) and Jindal Steel & Power Ltd. (1,002.35, 3.6%).

Downers:

Largecap and midcap losers today include Life Insurance Corporation of India (948.20, -3.9%), Adani Green Energy Ltd. (1,176.65, -3.3%) and Rail Vikas Nigam Ltd. (458.60, -2.5%).

Volume Rockets

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

Top high volume gainers on BSE included Nippon Life India Asset Management Ltd. (805.90, 9.7%), Varroc Engineering Ltd. (585.35, 9.4%) and Clean Science & Technology Ltd. (1,398.30, 8.5%).

Top high volume losers on BSE were VIP Industries Ltd. (481.55, -4.8%), Just Dial Ltd. (1,088, -4.6%) and Route Mobile Ltd. (1,424.05, -4.2%).

JBM Auto Ltd. (1,737.30, 7.6%) was trading at 23.6 times of weekly average. Kansai Nerolac Paints Ltd. (263.30, -3.7%) and Anupam Rasayan India Ltd. (770.40, 4.9%) were trading with volumes 12.6 and 7.0 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

16 stocks took off, crossing 52 week highs, while 2 stocks hit their 52 week lows.

Stocks touching their year highs included - EID Parry (India) Ltd. (916.80, 2.3%), HCL Technologies Ltd. (1,936.35, 1.4%) and MphasiS Ltd. (3,181.80, 2.5%).

Stocks making new 52 weeks lows included - Asian Paints Ltd. (2,388.90, -0.1%) and ZF Commercial Vehicle Control Systems India Ltd. (12,006.35, -2.4%).

27 stocks climbed above their 200 day SMA including Varroc Engineering Ltd. (585.35, 9.4%) and Hatsun Agro Products Ltd. (1,166.45, 7.6%). 13 stocks slipped below their 200 SMA including VIP Industries Ltd. (481.55, -4.8%) and Cochin Shipyard Ltd. (1,633.40, -3.0%).

 
Trendlyne Marketwatch
Trendlyne Marketwatch
09 Dec 2024
Market closes lower, Biocon's Bengaluru API facility gets a US FDA VAI classification
By Trendlyne Analysis

Nifty 50 closed at 24,619 (-58.8, -0.2%), BSE Sensex closed at 81,508.46 (-200.7, -0.3%) while the broader Nifty 500 closed at 23,292 (-20.1, -0.1%). Market breadth is in the green. Of the 2,321 stocks traded today, 1,243 showed gains, and 1,049 showed losses.

Nifty 50 closed lower after switching between gains and losses throughout the day. The Indian volatility index, Nifty VIX, fell 0.2% and closed at 14.1 points. Biocon fell as it received an establishment inspection report (EIR) with a voluntary action indicated (VAI) status from the US FDA for its API facility in Bengaluru, Karnataka.

Nifty Smallcap 100 and Nifty Midcap 100 closed in the green. Nifty FMCG and Nifty Media Index were among the top index losers today. According to Trendlyne’s sector dashboard, Telecommunications Equipment emerged as the top-performing sector of the day, with a rise of 4.6%.

Asian indices closed mixed. European indices are trading mixed. US index futures are trading flat as investors await the release of key inflation data, indicating a cautious start to the trading session. Brent crude oil futures are trading higher due to increased uncertainty in the Middle East following the fall of Syrian President Bashar al-Assad's regime.

  • Money flow index (MFI) indicates that stocks like Central Depository of India, Maharashtra Seamless, Laurus Labs, and The Fertilisers & Chemicals Travancore are in the overbought zone.

  • Shree Renuka Sugars rises as the National Company Law Tribunal (NCLT) approves the merger of its subsidiaries, including Monica Trading, Shree Renuka Agri Ventures, and Shree Renuka Tunaport, into the parent company.

  • RailTel Corp of India is rising as it receives multiple work orders worth Rs 29.6 crore. These include Rs 13.4 crore to provide 4G LTE-R infrastructure for South Central Railways and a Rs 16.2 crore order from the Employees Provident Fund Organisation for MPLS services across 140 locations.

  • Geojit BNP Paribas downgrades Manappuram Finance to 'Sell' from 'Buy' with a lower target price of Rs 152 per share. This indicates a potential upside of 11.3%. The brokerage believes the company's regulatory issues will affect its assets under management (AUM) growth in the medium term. It expects the firm's net interest income (NII) to grow at a CAGR of 6.5% over FY25-26.

  • Reports suggest that Flipkart, India's largest e-commerce company, valued at $36 billion (approximately Rs 3 lakh crore), is preparing for an IPO within the next 12-15 months. The Walmart-owned company has relocated its domicile from Singapore to India and plans to launch a public share sale by the end of 2025.

  • Shyam Metalics and Energy's stainless steel sales rise 51% YoY to 6,064 million tonnes (MT) in November. Aluminium foil sales increase 30% YoY to 2,018 MT. The company's speciality alloy sales grow 43% YoY, and carbon sales rise by 15% YoY.

  • Styrenix Performance Materials rises to its new all-time high of Rs 2,895 as its board of directors approves the acquisition of INEOS Styrolution (Thailand) for $20 million (approximately Rs 169.4 crore). INEOS supplies specialty ABS, high-heat ABS, and SAN polymers to customers in Southeast Asia and China. The acquisition improves Styrenix's market position and expands its footprint in the engineering polymers sector.

  • Hyundai Motor India plans to set up 600 public EV fast charging stations across India over the next seven years. The company expects to commission 50 charging stations by the end of 2024.

  • Crude oil futures are rising amid rising tensions in West Asia following the removal of Syrian President Bashar al-Assad. Traders will closely monitor the potential consequences of a regime change in Syria and its impact on the broader Middle East, especially oil production. Although Syria's oil output has been nearly depleted due to the ongoing civil war, the situation remains uncertain.

  • Biocon falls sharply as it receives an establishment inspection report (EIR) with a voluntary action indicated (VAI) status from the US FDA for its API facility in Bengaluru, Karnataka.

  • Servotech Power Systems is rising as it partners with LESSzwei GmbH (LESS2) to develop and deploy 100% solar-powered EV charging infrastructure for micromobility, such as e-bikes, e-scooters, and e-cargo bikes in urban areas of Germany.

  • Welspun Corp rises to its all-time high of Rs 824.4 as it secures two large orders in the US for HSAW and HFIW pipes. The orders involve supplying coated pipes for a natural gas pipeline project, set for execution in FY25 and FY26.

  • Adani Ports & Special Economic Zone rises after its Krishnapatanam Port in Andhra Pradesh gets a Navigational Safety at Ports Committee (NSPC) certificate from the Government for petroleum imports in the country until March 2026.

  • Roto Pumps is rising as it secures over 400 orders for its newly launched Solar Submersible Pumping Systems under the brand 'Roto Rudra' for agriculture, irrigation, and renewable energy projects. The orders are from Australia, South Africa, and the Indian states of Chhattisgarh and Maharashtra.

  • Star Health & Allied Insurance falls sharply as it receives a show-cause notice from the Insurance Regulatory and Development Authority of India (IRDAI) after an inspection in 2022.

  • Easy Trip Planners is rising as it announces three acquisitions to expand into new sectors. It acquires 49% of Dubai-based Pflege Home Health Care Center for Rs 30 crore, entering medical tourism and home healthcare markets. It invests Rs 100 crore for a 50% stake in Jeewani Hospitality for hotel operations and Rs 39.2 crore for 49% of Australia’s Planet Education, entering the global education market.

  • Macquarie maintains a 'Neutral' rating on Godrej Consumer Products with a lower target price of Rs 1,260. The brokerage raises concerns that the ongoing palm inflation will likely delay the normalization of soap volumes and margins. It also aligns with the firm's perspective that the growth impact of insecticides is more seasonal.

  • Rites is rising as it emerges as the top scorer (H-1 bidder) for a $9.7 million (approximately Rs 82.3 crore) engineering services contract in Guyana. The project involves upgrading the Palmyra to Moleson Creek Highway.

  • Suven Pharmaceuticals acquires a 56% stake in US-based NJ Bio for Rs 535 crore. As part of the deal, Suven has invested Rs 411 crore to purchase shares from minority stakeholders and Rs 124 crore in primary equity to fund capacity expansion at NJ Bio's 80,000-square-foot facility in Princeton. The acquisition positions Suven in the $2.7 billion global ADC outsourcing market, expected to grow by 25% annually.

  • Wipro partners with SIAM.AI, a member of the NVIDIA Cloud Partner program in Thailand, to develop an AI-powered digital assistant named "Sukjai" for the Tourism Authority of Thailand. The assistant will provide 24/7 support and information on transportation guidelines and schedules, destinations and lodging availability, activity recommendations, and crowd flow details at popular attractions.

  • Textile companies like Trident and Welspun Living are rising by over 6% following reports that Bangladesh's interim government is considering the sale of ownership in 32 companies under the Beximco Group as a long-term solution to the ongoing workers' unrest over unpaid salaries and allowances.

  • NLC India is rising sharply as it emerges as the successful bidder for the New Patrapara South Coal Mine in Odisha in an auction held by the Ministry of Coal (MoC).

  • Laurus Labs' subsidiary, Laurus Bio, enters an agreement for a Rs 120 crore investment from Eight Roads Ventures and F-Prime Capital. Laurus Labs will also invest Rs 40 crore in the subsidiary.

  • Ceat surges to its all-time high of Rs 3,370.6 per share as it acquires Camso's off-highway construction equipment tyre and tracks business from the Michelin Group for a cash consideration of $225 million (approx. Rs 1,906.6 crore).

  • JSW Energy is rising as it bags a letter of award (LoA) from NTPC to set up a 400 MW Inter-State Transmission System (ISTS) connected solar power project.

  • Nifty 50 was trading at 24,680.95 (3.2, 0.0%), BSE Sensex was trading at 81,568.19 (-140.9, -0.2%) while the broader Nifty 500 was trading at 23,338.65 (26.6, 0.1%).

  • Market breadth is surging up. Of the 2,042 stocks traded today, 1,563 were on the uptrend, and 435 went down.

Riding High:

Largecap and midcap gainers today include Supreme Industries Ltd. (5,012.65, 5.8%), Delhivery Ltd. (371.10, 5.1%) and Bajaj Holdings & Investment Ltd. (11,122, 4.2%).

Downers:

Largecap and midcap losers today include Godrej Consumer Products Ltd. (1,127.85, -8.7%), Syngene International Ltd. (867.90, -5.6%) and Star Health and Allied Insurance Company Ltd. (468.15, -4.2%).

Movers and Shakers

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

Top high volume gainers on BSE included C.E. Info Systems Ltd. (1,908.45, 16.1%), ITI Ltd. (368.10, 14.6%) and Ceat Ltd. (3,415.75, 10.3%).

Top high volume losers on BSE were Godrej Consumer Products Ltd. (1,127.85, -8.7%), Marico Ltd. (607.75, -4.1%) and Laurus Labs Ltd. (571.90, -3.0%).

Trident Ltd. (37.99, 10.2%) was trading at 46.3 times of weekly average. Sundram Fasteners Ltd. (1,181.20, 4.3%) and Varroc Engineering Ltd. (534.85, 3.4%) were trading with volumes 17.6 and 11.5 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

21 stocks made 52 week highs, while 1 stock hit their 52 week lows.

Stocks touching their year highs included - Ceat Ltd. (3,415.75, 10.3%), City Union Bank Ltd. (186.27, 0.7%) and Deepak Fertilisers & Petrochemicals Corporation Ltd. (1,381.55, -3.0%).

Stock making new 52 weeks lows included - Asian Paints Ltd. (2,391.85, -1.6%).

25 stocks climbed above their 200 day SMA including ITI Ltd. (368.10, 14.6%) and Trident Ltd. (37.99, 10.2%). 10 stocks slipped below their 200 SMA including Marico Ltd. (607.75, -4.1%) and MMTC Ltd. (82.01, -2.1%).

 
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The Baseline
06 Dec 2024, 05:37PM
Five Interesting Stocks Today - December 06, 2024

1. Dixon Technologies:

This smartphone manufacturer rose 11.6% over the past week to hit an all-time high of Rs 17,530 on Thursday. The surge came after the announcement that its subsidiary, Padget Electronics, will commence mass production of Google Pixel smartphones in collaboration with Compal Smart Device India. Google aims to ship over 10 million Pixel phones globally this year, following the shipment of about 10 million units in 2023.

Dixon Technologies' revenue surged 2.3X YoY to Rs 11,528.4 crore in Q2FY25, driven by a 235% YoY rise in its mobile & EMS segment. However, the company expects the contribution from the mobile segment to reduce from 70% to 60-65% by FY26, due to strong order inflow in the telecom and IT hardware segments.

In the IT hardware segment, Dixon has partnered with four of the top five players, covering 70-75% of the market, and plans to scale up production in the coming quarters. The company will begin production for Lenovo in Q3FY25, followed by Asus in Q4FY25, and targets a revenue of Rs 4,500-5,000 crore in the next 2-3 years for the IT hardware segment.

Telecom segment revenues have grown sharply, rising from Rs 17.3 crore in FY22 to Rs 690 crore in FY24, driven by increasing demand from Bharti Airtel for set-top boxes. To support this growth, Dixon plans to double its telecom capacity at its Noida facility.

The company’s production-linked incentives (PLI) are ending in FY26. PLI is a government scheme that offers financial incentives to companies to increase their production in specific sectors. Dixon Technologies has been declared eligible under the reworked PLI 2.0 scheme for IT products. Commenting on this, MD Atul Lall said “We have committed to a total production value of Rs 48,000 crore over the six years of the PLI scheme. By the third year, we expect our annual revenue to stabilize between Rs 4,500-5,000 crore.”

Sharekhan maintains a ‘Buy’ rating on Dixon with a target price of Rs 18,800, indicating a potential upside of 7.9%. The brokerage believes that onboarding top-tier clients in the IT hardware segment positions Dixon for growth in the coming years. While the mobile & EMS segment is expected to lead, other verticals, including IT hardware and laptops, are likely to contribute to overall performance.

2. PG Electroplast:

This consumer electronics company has gained 16.2% over the past week following board approval for a qualified institutional placement (QIP) to raise Rs 1,500 crore on December 4. This QIP will result in an equity dilution of 6.7%.

PG Electroplast posted a 56.3% YoY rise in net profit to Rs 19.3 crore in Q2FY25, and a 45.7% increase in revenue YoY due to a strong order book across its product lines. The product business (mainly home appliances), contributing 53.7% to the total revenue, grew 106% YoY. The room air conditioners (RAC) segment saw a growth of 212% due to the extended summer season, while the washing machine business grew 23% YoY during the same period. Operating profit margins improved by 3% YoY in Q2, driven by cost control and operating leverage.

Last month, the company, through its wholly owned subsidiary PG Technoplast, signed a definitive agreement with Spiro Mobility, an electric two-wheeler company based in Africa. Under the agreement, the company will serve as Spiro Mobility’s exclusive manufacturing partner for electric vehicles in India. Vishal Gupta, MD (Finance), said, “We are looking at a revenue of around Rs 500 crore by the second year of operation.”

Nuvama maintains a ‘Buy’ rating after the company surpassed Q2FY25 expectations by 10%. The brokerage expects the company to achieve a revenue and net profit CAGR of 29% and 43%, respectively, over FY25-27. However, it highlights unfavourable weather conditions and delays in ramping up new categories as key risks.

3. Aster DM Healthcare:

Thishealthcare company surged 11.4% over the past eight trading sessions, following a merger announcement with Blackstone-backed hospitals operator Quality Care India (QCIL). The merged entity, Aster DM Quality Care, aims to become one of India's top three hospital chains in terms of revenue and bed capacity.

The new entity will have a network of 38 hospitals and over 10,150 beds across 27 cities and nine states with a market presence in South and Central India. Aster shareholders will own 57.3% of the merged entity, while QCIL shareholders will hold the remaining 42.7%. Azad Moopen, Founder and Chairman of Aster DM Healthcare, will continue as the Executive Chairman, and Varun Khanna, Group MD of Quality Care, will become the MD and Group CEO of the merged entity.

Alisha Moopen, Deputy Managing Director of Aster DM Healthcare,said “The merged entity will be uniquely positioned to pursue both brownfield and greenfield expansion projects with plans to reach 13,300 bed capacity by FY27.” 

InQ2FY25, Aster DM Healthcare reported a revenue of Rs 1,086.4 crore beating Trendlyne’s Forecaster estimates by 1.3%, despite declining 67.2% YoY due to the sale of its GCC (Gulf Cooperation Council) business to a consortium led by Fajr Capital in Q4FY24. However, the company’s revenue grew by 8.5% QoQ.

In H1FY25, the company’s average revenue per occupied bed (ARPOB)rose by 11.8% YoY to Rs 43,600. The company plans toadd 1,800 beds by FY27, increasing its total capacity to 6,800.

After the merger announcement, Prabhudas Lilladharmaintains its ‘Buy’ rating with a target price of Rs 620, indicating an upside potential of 26.4%. The brokerage expects an EBITDA CAGR of 24% over FY25-27 and notes that the management aims for a 10-15% increase in EBITDA over the next 3-4 years driven by optimizing material and manpower costs.

4. Cochin Shipyard:

This marine port & services company rose 5% on December 2 after securing a contract worth Rs 1,000 crore from the Defence Ministry. The contract involves the short refit and dry docking of a large Indian naval vessel. In addition, the Defence Acquisition Council approved five capital acquisition proposals totalling over Rs 21,772 crore, providing a boost to defence stocks like Hindustan Aeronautics, Bharat Dynamics, and shipbuilders including Cochin Shipyard. The procurement includes equipment for the Indian Navy, Coast Guard, and Air Force. 

Cochin Shipyard has surged by 7.1% over the past week. This rise in share price is also driven by a memorandum of understanding (MoU) signed by the company with Seatrium Letourneau USA. This involves designing and providing critical equipment for jack-up rigs for the Indian market on November 25.

As of September 30, 2024, Cochin Shipyard’s order backlog stands at Rs 22,000 crore,  providing strong revenue visibility over the next few years. Speaking on this Madhu S Nair, the CEO said, “Our order book reached an all-time high during the second quarter, which involved building 65 ships, with the bulk of the orders coming from Germany, Norway, Cyprus, and the Netherlands. Apart from these, we have our focus on making green ships and already fulfilling orders for hydrogen fuel cell and methanol ships, electric ships, hybrid ships, and other sophisticated ships.” During the quarter, the company completed the capacity expansion of its dry dock and international ship repair facility. This is expected to improve its operational capability, enabling the construction and repair of larger vessels. 

The company reported a 13% YoY increase in revenue to Rs 1,143.2 crore in Q2, led by better execution in the shipbuilding and ship repair segments. Net profit grew 4.1% YoY to Rs 188.9 crore during the quarter. However, EBITDA margins declined 260 bps YoY to 18%, due to higher input costs and lower shipbuilding margins.

Geojit BNP Paribas has a ‘Buy’ rating on Cochin Shipyard with a target price of Rs 1,557, which the company has already surpassed. The brokerage believes the company’s long-term prospects have improved in terms of capacity expansion, order visibility, and ship repair orders.

5. Solar Industries India:

This industrial products company rose by over 3% on December 2 as it received its largest-ever export order worth Rs 2,039 crore for the supply of defence products, over a period of four years. Following this, on December 4, the Defence Acquisition Council, led by Defence Minister Rajnath Singh approved five defence acquisition proposals worth over Rs 21,772 crore, creating a potential opportunity for the company in defence orders.

The company released its Q2FY25 result on November 13. Its net profit rose by 48.2% YoY to Rs 285.9 crore, while its revenue rose 28.9% YoY on the back of a rise in defence order inflows. However, the company missed Trendlyne Forecaster's revenue estimate by 10% and net profit estimate by 21% due to delays in the Indian 'Pinaka' (rocket launcher) order and slow growth in the construction and infrastructure segments. It appears in a screener of stocks that have consistently given high returns over five years in Nifty500.

ICICI Securities notes that the market is underestimating the impact of the company's ongoing export order inflows in the defence sector. With Rs 4,500 crore in orders for CY24, they expect annual revenue growth of Rs 1,100–1,300 crore. The defence order book, at Rs 3,360 crore before Q2FY25, is expected to rise to Rs 5,000–5,200 crore with the new order.

Manish Nuwal, CEO & managing director of the company, revised the FY25 capex guidance upward to Rs 1,200 crore and also expects defence product sales of Rs 1,500 crore, making up 20% of total sales. Regarding the Pinaka orders, he said, “Due to Diwali and the holiday season, Pinaka orders were delayed, but we expect to receive them within a month, marking a significant milestone for our company.”

ICICI Securities retains its ‘Buy’ rating on Solar Industries with a target price of Rs 13,250. The brokerage notes that the incremental earnings from domestic orders are likely to sustain defence revenues for the company at Rs 1,800-2,500 crore on average and keep margins elevated over the next four years. At this stage, the brokerage’s FY26 EPS estimate is 10% higher than consensus and it believes that upward revisions are likely. 

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