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The Baseline
17 Dec 2024
By Aditi Priya

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

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

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

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

Consumer durables sector leads with top-performing IPOs

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Riding High:

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

Downers:

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

Movers and Shakers

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

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

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

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

BSE 500: highs, lows and moving averages

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

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

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

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

 
Trendlyne Marketwatch
Trendlyne Marketwatch
16 Dec 2024
Market closes lower, NBCC bags projects worth Rs 489.6 crore in Chhattisgarh and Jaipur
By Trendlyne Analysis

Nifty 50 closed at 24,668.25 (-100.1, -0.4%), BSE Sensex closed at 81,748.57 (-384.6, -0.5%) while the broader Nifty 500 closed at 23,352.45 (-6.5, 0.0%). Market breadth is in the green. Of the 2,323 stocks traded today, 1,261 were gainers and 1,042 were losers.

Indian indices closed in the red, with the benchmark Nifty 50 index closing at 24,647.8 points. The Indian volatility index, Nifty VIX, rose 7.6% and closed at 14 points. India’s WPI inflation declined to 1.9% in November from a four-month high of 2.4% in October, driven by a decline in the prices of food items.

Nifty Midcap 100 and Nifty Smallcap 100 closed in the green. BSE Realty Index and Nifty Realty were among the top index gainers today. According to Trendlyne’s Sector dashboard, Realty emerged as the best-performing sector of the day, with a rise of 2.9%.

Asian indices closed in the red and European indices are trading lower. US index futures traded in the green, indicating a positive start to the trading session. Brent crude oil futures are trading in the red following disappointing Chinese economic data and ahead of the upcoming Federal Reserve policy meeting. Last week, the International Energy Agency highlighted a decline in China's oil demand, fueling concerns about oversupply in the year ahead.

  • Relative strength index (RSI) indicates that stocks like Swan Energy, Persistent Systems, Kaynes Technology, and Chalet Hotels are in the overbought zone.

  • Vakrangee surges as it schedules a meeting on December 21 to consider fundraising through a rights issue, preferential issue, QIP, warrants, or other permissible modes.

  • RBL Bank receives approval from the Reserve Bank of India (RBI) to reappoint R Subramaniakumar as its Managing Director (MD) and Chief Executive Officer (CEO) for the next three years, effective June 23, 2025.

  • NBCC (India) is rising as it receives various work orders worth Rs 489.6 crore. This includes a Rs 459.6 crore order from the Chhattisgarh Department of Tribal and Scheduled Caste to build Eklavya Model Residential Schools and a Rs 30 crore order from PDUNIPPD, New Delhi, to construct a building for the Composite Regional Centre (CRC) in Jamdoli, Jaipur.

  • India's private sector growth reaches a four-month high in December, driven by strong demand across services, manufacturing, and record job creation. The composite PMI rose to 60.7, indicating robust expansion. Easing inflation and a positive outlook suggest continued growth in 2025. Service providers led sales growth during the month, while improving international demand also boosted sales, with goods seeing a faster increase than services.

  • Jindal Worldwide rises sharply as its board of directors schedules to meet on January 7, 2025, to consider and approve the issue of bonus shares to its shareholders.

  • JK Paper rises sharply as its board approves the merger of Horizon Packs, Securipax Packaging, and JKPL Utility Packaging into the parent company. The board also approves the acquisition of a 60% stake in Radhesham Wellpack, with the balance of 40% to be acquired within two years.

  • Elcid Investments is rising as it submits an application to the Reserve Bank of India (RBI) to register its Non-Banking Financial Company (NBFC) as a Type-I NBFC-ND.

  • Arul Selvan, CFO of Cholamandalam Investment & Finance Co, projects an asset under management (AUM) growth of around 25-28% in FY25. He expects the commercial vehicle segment may not witness significant growth in Q3 but notes the growing interest in financing heavy commercial vehicles among small road transport businesses.

  • Caplin Point Laboratories receives approval from the US FDA for its abbreviated new drug application (ANDA) for Difluprednate Ophthalmic Emulsion (Eye drops), used to treat inflammation and pain post-ocular surgery and endogenous anterior uveitis. The product is equivalent to Sandoz’s Durezol, with an estimated market size of approx. $21 million in the year ending October 2024, according to IQVIA.

  • Waaree Energies receives orders from a domestic client for two projects totalling 398 MW. The order involves the supply of solar modules, set to commence in FY25-26.

  • JSW Energy is rising as it secures multiple renewable energy projects in the Commercial and Industrial (C&I) power market. The company's total power generation capacity reaches 20 GW with these projects. Its locked-in renewable energy C&I capacity now totals 3.1 GW, which includes 2,654 MW of JSW Group's captive capacity and 445 MW of third-party C&I capacity.

  • India’s WPI inflation declines to 1.9% in November from a four-month high of 2.4% in October, driven by a decline in the prices of food items. Primary articles inflation declines to 5.5% during the month, down from 8.1% in October.

  • Lupin acquires trademarks for three anti-diabetes brands – Gibtulio, Gibtulio Met, and Ajaduo, from Boehringer Ingelheim International GmbH. This acquisition will help the company strengthen its diabetes portfolio in India.

  • Samvardhana Motherson International’s subsidiary, Samvardhana Motherson Automotive Systems, announces the acquisition of Brazil-based auto component maker Baldi Industria in a cash deal worth $7.8 million (approx. Rs 66.2 crore). The transaction is set to close by Q1FY26.

  • Rites is rising as it secures a contract worth Rs 297.7 crore from the Ministry of External Affairs, Government of India. The contract involves providing project implementation services to construct an Integrated Check Post (ICP).

  • Paper companies like JK Paper and West Coast Paper are rising, following reports of an increase in paper prices by 1-4% in January and 8-10% in February and March. Additionally, Q3 and Q4 are strong quarters for these companies, driven by increased paper demand due to syllabus and curriculum changes in educational institutions and boards.

  • Wockhardt surges to its new 52-week high of Rs 1,536.6 as it announces the successful use of its drug Zaynich (WCK 5222) in a US cancer patient. The drug is nearing Phase III study completion for global approval.

  • Happy Forgings secures an order worth Rs 140 crore to supply crankshafts for the passenger vehicle industry. The company will commence delivery of the components from FY26, following the completion of testing and approval processes.

  • Premier Explosives rises to its 10% upper circuit as it signs a memorandum of understanding (MoU) with Global Munition, a subsidiary of NIBE Ordnance and Maritime (a NIBE Group Company), to set up a 51:49 joint venture (JV) to manufacture defence and aerospace products.

  • Jefferies maintains its 'Buy' rating on PI Industries, with a lower target price of Rs 4,865. The brokerage highlights a lower revenue growth forecast from one of the company's largest Tokyo-based clients, Kumiai Chemicals, for November 2024 to October 2025, citing a 7% YoY decline in pyroxasulfone sales. However, it expects healthy growth in FY26, driven by new product momentum and pyroxasulfone inventory normalisation.

  • HG Infra Engineering is rising as its wholly-owned subsidiary, HG Chennai-Tirupati (II) Highway, secures an order worth Rs 862.1 crore from the National Highways Authority of India (NHAI). The project involves building 4-lane and 6-lane highways in Andhra Pradesh.

  • HBL Power Systems surges to its all-time high of Rs 739.7 per share as it bags an order worth Rs 1,522.4 crore from Chittaranjan Locomotive Works to supply, install, and commission onboard train collision avoidance system (TCAS) equipment in 2,200 locomotives.

  • Afcons Infrastructure is rising as it secures a contract worth Rs 1,006.7 crore from Madhya Pradesh Metro Rail Corp (MPMRCL). The project includes the partial design and construction of an elevated viaduct and 13 elevated metro stations, connecting Bhadbhada Chauraha to Ratnagiri Tiraha as part of the Bhopal Metro Rail Project.

  • Dixon Technologies surges to its all-time high of Rs 18,212 per share after forming a 51:49 joint venture (JV) with vivo India to expand into original equipment manufacturing (OEM) of electronic devices, including smartphones.

  • Nifty 50 was trading at 24,747 (-21.3, -0.1%), BSE Sensex was trading at 82,031.83 (-101.3, -0.1%) while the broader Nifty 500 was trading at 23,393.15 (34.2, 0.2%).

  • Market breadth is surging up. Of the 2,044 stocks traded today, 1,578 were in the positive territory and 423 were negative.

Riding High:

Largecap and midcap gainers today include Oberoi Realty Ltd. (2,253.50, 6.4%), Dixon Technologies (India) Ltd. (18,831.80, 4.9%) and FSN E-Commerce Ventures Ltd. (174.56, 3.8%).

Downers:

Largecap and midcap losers today include Schaeffler India Ltd. (3,487.90, -2.6%), Adani Green Energy Ltd. (1,168.05, -2.5%) and Adani Energy Solutions Ltd. (811.90, -2.5%).

Volume Shockers

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

Top high volume gainers on BSE included Jindal Worldwide Ltd. (427.85, 10.7%), Sun Pharma Advanced Research Company Ltd. (230.71, 8.8%) and Five-Star Business Finance Ltd. (704.85, 8.6%).

Top high volume losers on BSE were Jubilant Pharmova Ltd. (1,080.50, -3.0%) and Timken India Ltd. (3,175.30, -0.8%).

Oberoi Realty Ltd. (2,253.50, 6.4%) was trading at 6.7 times of weekly average. KIOCL Ltd. (392.40, 5.2%) and Prestige Estates Projects Ltd. (1,830.75, 4.3%) were trading with volumes 5.1 and 4.5 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

23 stocks hit their 52 week highs, while 1 stock were underachiever and hit their 52 week lows.

Stocks touching their year highs included - Crisil Ltd. (5,791.95, -0.4%), eClerx Services Ltd. (3,821.50, 0.2%) and HCL Technologies Ltd. (1,954.40, -0.7%).

Stock making new 52 weeks lows included - ZF Commercial Vehicle Control Systems India Ltd. (11,585.15, 0.9%).

15 stocks climbed above their 200 day SMA including Action Construction Equipment Ltd. (1,408.15, 5.1%) and Indigo Paints Ltd. (1,486.40, 3.9%). 9 stocks slipped below their 200 SMA including Supreme Petrochem Ltd. (730, -3.1%) and Titan Company Ltd. (3,438.20, -2.0%).

 
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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)