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02 Dec 2024

Market closes higher, Maruti Suzuki's total wholesales rise 10% YoY in November

Nifty 50 closed at 24,276.05 (145.0, 0.6%), BSE Sensex closed at 80,248.08 (445.3, 0.6%) while the broader Nifty 500 closed at 22,835.85 (148.9, 0.7%). Market breadth is in the green. Of the 2,301 stocks traded today, 1,430 were in the positive territory and 846 were negative.

Indian indices closed in the green, with the benchmark Nifty 50 index closing at 24,274 points. The Indian volatility index, Nifty VIX, increased by 1.9% and closed at 14.7 points. India’s manufacturing PMI declined to an eleven-month low of 56.5 in November, compared to 57.5 in October, driven by rising input cost inflation.

Nifty Midcap 100 and Nifty Smallcap 100 closed in the green, following the benchmark index. 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 2.8%.

Asian indices closed higher while European indices are trading mixed. US index futures traded in the red, indicating a cautious start to the trading session. Brent crude oil futures are trading in the green. Investors are concerned about an impending trade war after Trump threatened on Sunday to impose "100% tariffs" on BRICS nations. He criticized their efforts to create a new currency and move away from the US dollar, warning that the US could cut off trade with the bloc unless they agree to use the dollar.

Money flow index (MFI) indicates that stocks like CCL Products India, The Fertilisers and Chemicals Travancore, and Ramco Cements are in the overbought zone.
Gujarat Gas announces a price hike of Rs 1.5 per kg for compressed natural gas (CNG), effective December 1. The new price will be Rs 77.8 per kg across the state of Gujarat.
Sterling Tools rises sharply as its subsidiary, Sterling Tech-Mobility, partners with China's Zhejiang Meishuo Electric to manufacture latching relays for power transmission in India. The partnership is expected to generate Rs 200 crore revenue by FY30 for Sterling Tools, with an initial Rs 20 crore investment.
Escorts Kubota is falling as its total wholesales decline 9.4% YoY to 8,974 units in November, while its exports decrease 39.5% to 244 units. The company's domestic wholesales drop by 8.1% to 8,730 units.
NMDC's total sales rise 5.5% YoY to 4 million tonnes (MT) in November as its production grows by 18% YoY to 4.5MT.
The Centre announces the removal of windfall tax on aviation turbine fuel (ATF), crude oil products, petrol, and diesel, providing relief to oil majors like Reliance and ONGC. The tax, introduced in July 2022 in response to rising global crude prices, was designed to capture revenue from producers' unexpected gains. The removal is expected to provide a significant boost to refining margins.
Positive news for RIL, ONGC, OIL INDIA

INDIA GOVT. DECIDED TO REMOVE WINDFALL TAX ON CRUDE

INDIA GOVT. DECIDED TO REMOVE CESS ON EXPORTS FROM PETROL AND DIESEL pic.twitter.com/YqwUwjQHh8
— Yatin Mota (@yatinmota) December 2, 2024
Biocon’s arm Biocon Biologics receives US FDA approval for Yesintek, a biosimilar to Johnson & Johnson’s Stelara (ustekinumab). Yesintek is a monoclonal antibody used to treat Crohn’s disease, ulcerative colitis, plaque psoriasis, and psoriatic arthritis. The global market size for ustekinumab is projected at around $11.4 billion in 2024.
Reports suggest that 1.9 crore shares (21% equity) of Home First Finance have changed hands in a block deal. The company's promoters are the likely sellers in the transaction.
HCL Technologies is rising as it partners with Google Cloud Security to deliver AI-driven managed detection and response (MDR) solutions. The service integrates HCLTech’s Fusion Platform with Google Cloud Security technology for better threat detection and response.
India’s manufacturing PMI declines to an eleven-month low of 56.5 in November, compared to 57.5 in October, driven by rising input cost inflation.
India manufacturing PMI eases to joint 11-month low of 56.5 in November.@PallaviNahata reports ??https://t.co/6PVHtpS0Xa
— NDTV Profit (@NDTVProfitIndia) December 2, 2024
TVS Motor is rising as its wholesales grow 10% YoY to 4 lakh units in November, driven by a 12% YoY increase in two-wheelers and a 57% YoY growth in electric vehicles. Exports surge 25% YoY during the same period.
Adani Ports and Special Economic Zone handles 36 million metric tonnes (MMT) of cargo in November, led by a 21% YoY growth in the container segment. January-November cargo volumes grow 7% YoY to 293.7 MMT, driven by containers (19% YoY) and liquids & gas (7% YoY).
Cochin Shipyard rises to its 5% upper limit as it secures a contract worth Rs 1,000 crore from the Ministry of Defence (MoD), Government of India, for the short refit and dry docking of a large Indian naval vessel.
Morgan Stanley maintains its 'Equal-weight' rating on IndusInd Bank with a lower target price of Rs 1,150. The brokerage highlights the 30% drop in share price following the bank's Q2 earnings, driven by concerns over weak asset quality in the microfinance (MFI) segment. The brokerage notes that the risk-reward isn't unfavorable, but near-term risk leans towards the downside.
#BrokerageRadar | Morgan Stanley on IndusInd Bank: Maintain Equal-weight; Cut target price to Rs 1150 from Rs 1400@MorganStanley pic.twitter.com/M8oAKe7Vp4
— ET NOW (@ETNOWlive) December 2, 2024
RBL Bank declines to its 52-week low of Rs 147.5 as it discontinues its eight-year co-branded credit card partnership with Bajaj Finance. This aligns with the bank’s plans to build diverse partnerships with NBFCs like Mahindra & Mahindra Finance, TVS Finance, and other brands like IRCTC and Indian Oil Corp.
Sterling and Wilson Renewable Energy is rising as it secures a Rs 504 crore order from a repeat customer in Rajasthan for the supply, installation, and commissioning of a 396 megawatt peak direct current (MWp DC) solar project.
Mahindra & Mahindra is rising as its wholesales grow by 12% YoY to 79,083 units in November. Passenger vehicle sales increase 16% YoY, while exports are up 53% YoY.
India's GDP growth slowed in Q2FY25, primarily due to weaker performance in the industrial sector. This is the slowest growth in seven quarters, prompting economists to revise their full-year growth projections downward. Barclays has lowered its forecast for FY25 to 6.5%, down from the previous estimate of 6.8%. Despite this, there are still expectations of a recovery in the second half of the fiscal year.
#India's Q2 #GDP growth slowed to a 7-quarter low of 5.4%, but #RBI's #MPC is likely to hold interest rates steady in its Dec review, citing #inflation concerns and liquidity issues. Growth forecast may dip below 7%, while inflation projections rise above 4.5%.@monstermanojit… pic.twitter.com/kr54e1sRP2
— Business Standard (@bsindia) December 2, 2024
GP Petroleums rises sharply as it secures a Rs 223 crore supply agreement with Hindustan Petroleum Corp (HPCL) to provide 50,000 metric tonnes of bulk bitumen (VG30) over a year, with a possible extension.
Cipla 's promoter reportedly sells nearly 1.4 crore shares (1.7% stake), worth Rs 2,000 crore, in a block deal at a floor price of Rs 1,442 per share.
Dixon Technologies surges to its 52-week high of Rs 16,824 as its arm, Padget Electronics, signs a contract with Compal Smart Device India to launch the mass production of Google Pixel.
India’s GDP slows to a seven-quarter low of 5.4% in Q2FY25, down from 6.7% in Q1, below RBI’s projection of 7% growth. The decline is due to slower growth in manufacturing and deceleration in mining and quarrying.
#India’s #GDP #growth slows in Q2 #FY25 to 5.4% amid weak consumption https://t.co/h2cZSda1Hx pic.twitter.com/Lh5GsZ4lnn
— Economic Times (@EconomicTimes) November 29, 2024
Hero MotoCorp's monthly wholesales decline 6.4% YoY to 4.6 lakh units in November due to lower motorcycle sales and domestic business. However, its exports grow by 35.7% YoY to 20,028 units during the month.
Bajaj Auto's domestic wholesales decline by 7% YoY to 2.4 lakh units in November due to a decrease in two-wheeler and commercial vehicle sales by 7% YoY and 5% YoY, respectively. However, the company's exports grow by 24% YoY to 1.8 lakh units during the month.
Rail Vikas Nigam is rising as it emerges as the lowest bidder for a contract worth Rs 642.6 crore from Punjab State Power Corp (PSPCL) to upgrade power distribution infrastructure in Punjab’s Central Zone. The project focuses on reducing losses in high-tension and low-tension power lines under the revamped distribution sector scheme (RDSS).
KEC International secures orders worth Rs 1,040 crore for its transmission and distribution (T&D) business from international markets. The orders include supplying towers, hardware, and poles in the US and constructing 220 kV transmission lines in the Commonwealth of Independent States (CIS).
Nifty 50 was trading at 24,037.75 (-93.4, -0.4%) , BSE Sensex was trading at 79,643.55 (-159.2, -0.2%) while the broader Nifty 500 was trading at 22,630.25 (-56.8, -0.3%)
Market breadth is in the red. Of the 2,011 stocks traded today, 837 were on the uptrend, and 1,109 went down.

Riding High:

Largecap and midcap gainers today include Dixon Technologies (India) Ltd. (16,763.90, 6.1%), Indraprastha Gas Ltd. (343.55, 5.1%) and Torrent Power Ltd. (1,586.30, 5%).

Downers:

Largecap and midcap losers today include Adani Total Gas Ltd. (772.55, -4.9%), Adani Energy Solutions Ltd. (807, -4.0%) and UNO Minda Ltd. (1,021.80, -2.8%).

Volume Shockers

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

Top high volume gainers on BSE included Castrol India Ltd. (215.25, 7.2%), Affle (India) Ltd. (1,736.20, 7.2%) and Intellect Design Arena Ltd. (764.10, 6.6%).

Top high volume losers on BSE were Emami Ltd. (631.25, -7.7%), Can Fin Homes Ltd. (814.55, -1.1%) and Berger Paints (India) Ltd. (489.60, -0.8%).

Home First Finance Company India Ltd. (1,074.75, 2.2%) was trading at 27.1 times of weekly average. Relaxo Footwears Ltd. (680.20, 1.5%) and Happiest Minds Technologies Ltd. (770.40, 6.5%) were trading with volumes 15.6 and 11.7 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

18 stocks hit their 52 week highs, while 2 stocks tanked below their 52 week lows.

Stocks touching their year highs included - Caplin Point Laboratories Ltd. (2,236.05, 1.8%), Divi's Laboratories Ltd. (6,255.35, 1.3%) and eClerx Services Ltd. (3,542.05, 1.6%).

Stocks making new 52 weeks lows included - RBL Bank Ltd. (155.96, 0.6%) and Equitas Small Finance Bank Ltd. (62.52, 0.3%).

21 stocks climbed above their 200 day SMA including Torrent Power Ltd. (1,586.30, 5%) and Cochin Shipyard Ltd. (1,656.15, 5%). 16 stocks slipped below their 200 SMA including Emami Ltd. (631.25, -7.7%) and Kirloskar Oil Engines Ltd. (1,090, -2.8%).

29 Nov 2024

Five Interesting Stocks Today - November 29, 2024

1. NBCC (India):

This construction and engineering company rose over 3.2% on Thursday after signing a memorandum of understanding (MoU) with Housing & Urban Development Corp (HUDCO) to develop a 10-acre institutional plot in Noida Sector 62. The project, estimated at Rs 600 crore, will have NBCC as the project management consultant.

NBCC has risen by 6.3% over the month, driven by multiple order wins during November worth more than Rs 1,500 crore (excluding the MoU with HUDCO). These include work orders worth Rs 428 crore from the ST & SC Development Department, Government of Odisha, to upgrade primary school hostels and schools across various locations in the state.

Other orders this month include project management consultancy services for Rajasthan State Industrial Development and Investment Corp and building construction for the Bureau of Indian Standards (BIS) across five locations, among others.

During Q2FY25, NBCC reported a 19.8% YoY increase in revenue to Rs 2,458.7 crore, driven by improvements in the PMC (project management consultancy), real estate, and EPC (engineering procurement and construction) segments. Net profit increased 53.4% YoY to Rs 122.1 crore during the quarter, (the company incurred an exceptional expense of Rs 65.4 crore in Q2FY24).

The company’s current order book stands at Rs 84,400 crore. During the first half of the year, NBCC secured Rs 28,100 crore worth of orders, up 19.6% YoY. With a strong order pipeline in place, the focus now falls on the execution of projects. Speaking on this, Kellambally Mahadevaswamy, CMD of the company said, “This is one of the highest ever business secured in six months. We are targeting to take it up to Rs 1 lakh crore at the end of this financial year”.

Trendlyne classifies NBCC (India) as an Expensive Performer. The company is trading in the Strong Sell Zone, indicating that it is currently trading above its historical PE.

2. LTIMindtree:

This IT software firm has risen by 4.1% in the past week, following two developments. The company entered a partnership with Microsoft to jointly invest in AI-powered solutions and create go-to-market strategies, aimed at helping clients accelerate AI adoption. Additionally, Life Insurance Corporation of India (LIC) increased its stake in LTIMindtree (LTIM) from 5% to 7% between March 20 and November 19, 2024, now holding shares worth approximately Rs 12,630 crore.

LTIM reported a 10.3% QoQ growth in net profit, reaching Rs 1,251 crore in Q2FY25, surpassing Trendlyne Forecaster’s estimates by 1.8%. Revenue also rose 3.9% to Rs 9,731.8 crore, driven by growth in the banking, financial services & insurance (BFSI) and technology, media & communications segments. The EBIT margin improved modestly by 50 bps QoQ to 15.5%. The company features in a screener of stocks with increasing revenue every quarter for the past two quarters.

The company secured $1.3 billion in deal wins in Q2, including a $200 million multi-year deal in the manufacturing segment. The company has a strong deal pipeline, with a total contract value (TCV) of $5 billion. Over the past 18 months, LTIM has closed 45+ large deals worth $2 billion, with a balanced portfolio: 30% in banking, financial services & insurance (BFSI), 33% in manufacturing, and 31% in communications.

However, the management expects Q3 to face seasonal headwinds and furloughs (temporary employee absences), which could moderate its momentum to some extent. Chief Financial Officer Vipul Chandra said, “We expect a 200 bps margin impact from wage hikes and furloughs in Q3. Our target EBIT margin is 17-18%, but achieving this will depend on the industry returning to double-digit growth.” Analysts believe that increased spending by BFSI clients on transformation projects will drive growth, despite margin pressures.

LTIM plans to expand its scaled verticals, such as BFSI and Technology, and accelerate overall growth. The management sees AI as its key focus and expects Gen AI to drive the next wave of productivity. It has recently established an AI innovation center in Bengaluru, in partnership with IBM, to accelerate AI adoption for clients.

Motilal Oswal maintains a ‘Buy’ rating on this stock with a target price of Rs 7,400, indicating a potential upside of 19.9%. The brokerage is confident in the company's expertise in data engineering and ERP modernization, positioning it well to benefit from pre-GenAI investments. It expects a net profit CAGR of 19.2% over FY25-27. However, the firm is in the PE Sell Zone, currently trading above its historical PE.

3. Tips Music:

Thismedia and entertainment company gained 3% on November 25 after announcing a direct strategicpartnership with TikTok, the short-form video platform owned by ByteDance. The deal will promote Tips music library globally, excluding India and China.

The agreement between Tips Music and TikTok aims to meet the increasing global demand for Indian music, particularly among non-resident Indians (NRIs) and expatriates. Through this agreement, TikTok users will have access to over 31,000 songs from Tips Music's library, featuring genres from Bollywood classics to regional language hits.

Kumar Taurani, Managing Director of TIPS Musicsaid, “This direct strategic partnership with ByteDance marks an important step in expanding the global footprint and engagement of TIPS Music. The TikTok platform has a massive audience base and this deal improves the discovery of our music.”

InQ2FY25, the company reported a net profit growth of 21.5% YoY to Rs 48.2 crore, while revenue surged 33.7% YoY to Rs 86.2 crore. This growth is attributed to the increasing contribution from digital platforms such as YouTube, Spotify, Saavn, Amazon Music, and Apple Music. Managementexpects overall revenue and net profit to grow by 30% for FY25 and plans to increase market share from the current 8-9% to 10-11% within the next 3-4 years.

Yes Securities hasinitiated a ‘Buy’ rating on Tips Music, with a target price of Rs 1,050. The brokerage believes that favourable industry trends, a strong content acquisition strategy and improved licensing laws will benefit the company in the medium term. They expect revenue and EPS to grow at a CAGR of 38% each over FY25-27, driven by a mix of growth in advertising revenues and premium subscriptions.

4. L&T Finance:

ThisNBFC surged 3.4% over the past week as itannounced a multi-year partnership with Amazon Finance India, a lending service provider to offer loan products through Amazon’s app and website. This will help L&T Finance (LTF) diversify its loan book as it extends loans to Amazon’s merchants as well as customers.

InQ2FY25, the company reported revenue growth of 15.6% YoY at Rs 4,024 crore, with net profit rising 16.9% YoY to Rs 696 crore. Both revenue and net profit beat Forecaster estimates marginally. As disbursements in the retail segment increased 12% YoY, assets under management (AUM) grew 28% YoY to Rs 88,975 crore. Credit costs stayed almost flat YoY which led to 32 bps YoY growth in net interest margins.

During itsinvestor day on November 25, LTF provided insights into its project Cyclops, which is an AI-based underwriting engine still in its beta phase. Managing Director and CEO, Sudipta Roy, says, “Cyclops will help the company transition from a wholesale dominant franchise to a retail-focused NBFC.” Management at LTF highlighted that they introduced the Cyclops project to the two-wheeler business in June ‘24.

Before Cyclops, LTF was able to handle 8,000 requests per day, but now it can handle over 2 lakh requests per day. Customer mix has also improved and shifted towards the ones that have the least number of delinquencies (failed payments by borrowers) due to improved borrower segmentation.

ICICI Securitiesmaintains a ‘Buy’ rating on L&T Finance as they expect these new initiatives to improve operational efficiency. LTF also plans to introduce an automated risk management system by September 2026, which will be able to generate early warning signals resulting in a further decline in credit costs. With AUM growth of 20-25% on a sustained basis, the company aims to double its loan book in the next 3-4 years.

5. Sobha:

This realty company has gained over 10% in the past week after it posted its Q2FY25 result on 15th November. Its net profit rose 74.6% YoY to Rs 26.1 crore, while its revenue increased by 24.8% YoY on the back of a 43.7% rise in real estate segment revenue. The company beat the Trendlyne Forecaster estimates for revenue by 15.5%. However, it missed the net profit estimate by 37.7% as its EBITDA margin contracted by 192bps YoY to 9%. It appears in a screener of stocks which have consistently given high returns over five years in Nifty500.

Q2FY25 was a mixed quarter for the company, with a 32% YoY decline in pre-sales, primarily due to lower demand for recent launches in the first half of the year. The company’s contract manufacturing segment also saw a 22.9% YoY revenue decline. However, completions were up by 28% YoY to around 0.9msf, supporting strong revenue growth. The company’s residential segment has been a growth driver for the company with its collections rising by 8.6% YoY to Rs 2,614 crore due to new launches. Also, the company's extensive land bank across multiple cities has further strengthened its market position.

Analysts note that the company has resolved its debt issues through better operating cash flow and successful completion of its Rs 2,000 crore rights issue, positioning it for aggressive growth. They also mention that the promoter is gradually increasing their stake, and Sobha is expanding its portfolio by acquiring land and forming more joint ventures.

Jagadish Nangineni, managing director of the company, on the EBITDA margins said, “The contracts and manufacturing can give much better margin once we choose the right set of contractual projects or we choose to deemphasize on some of kind of contracts that we are currently undertaking like civil in nature”. He adds that, “The revenue yet to be recognized from the sales that have been done till date, stands at about Rs 14,500 crore and the blended margin for this unrecognized revenue is over 33% and which would be recognized in the next 4 to 5 years.” On FY25 guidance he added, “Our previous guidance of Rs 8,500 crore in pre-sales depends on the timing of our expected launches in the next 5 months. We're hopeful that things will align, but a clearer picture will emerge in the next 2 months as we roll out new products.”

Geojit BNP Paribas has retained an ‘Accumulate’ rating on Sobha with a target price of Rs 1,802. The brokerage expects the company to do well in H2FY25 on the back of planned launches of ~5.5msf in the latter half, from its massive pipeline of ~19.3msf. However, it also points out that as a premium player in the sector, any moderation in real estate demand is a key risk along with any delay in obtaining approvals.

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

29 Nov 2024

Market closes higher, Power Mech bags an order worth Rs 510 crore from Adani Power

Nifty 50 closed at 24,131.10 (217.0, 0.9%) , BSE Sensex closed at 79,802.79 (759.1, 1.0%) while the broader Nifty 500 closed at 22,687 (172.7, 0.8%). Market breadth is in the green. Of the 2,263 stocks traded today, 1,357 were in the positive territory and 867 were negative.

Nifty 50 maintained its gains in the afternoon session to close higher. The Indian volatility index, Nifty VIX, declined 5.1% and closed at 14.4 points. NCC closed over 2% higher as it secured an order worth Rs 3,389.5 crore from the Ken-Betwa Link Project Authority under the Ministry of Jal Shakti, Government of India.

Nifty Midcap 100 and Nifty Smallcap 100 closed higher. Nifty Consumer Durables and Nifty Auto closed in the green. According to Trendlyne’s sector dashboard, Fertilizers emerged as the best-performing sector of the day, with a rise of 5.4%.

European indices are trading mixed. Major Asian indices closed mixed. US index futures are trading higher, indicating a positive start to the trading session. Brent crude oil prices fell 0.5%. Investors are now focusing on the upcoming OPEC+ meeting scheduled for December 5.

Relative strength index (RSI) indicates that stocks like Coforge, Aster DM Healthcare, Laurus Labs, and CCL Products India are in the overbought zone.
Nazara Technologies' subsidiary, NODWIN Gaming, acquires gaming agency Trinity Gaming for Rs 24 crore. The deal involves Rs 4.8 crore in cash and Rs 19.2 crore in equity shares, with completion expected in 60 days.
ITC's wholly-owned subsidiary, Russell Credit (RCL), acquires the entire share capital (4.2 crore equity shares of Rs 10 each) of Greenacre Holdings (GHL) for Rs 42.1 crore.
Pharma stocks like Divi's Laboratories, Torrent Pharma, Alkem Laboratories, and Cipla rise more than 3% in trade, helping the Nifty Pharma index to surge 2.5%.
Ajmera Realty & Infra India rises over 2% as it repays Rs 100 crore of its corporate debt, reducing outstanding borrowings to Rs 693 crore from Rs 793 crore. The debt reduction was funded through a recent equity offering of Rs 225 crore.
Ajmera Realty & Infra India Ltd (ARIIL) has repaid ?100 crore of its corporate debt, reducing outstanding borrowings from ?793 crore to ?693 crore, the company announced in a press release today. https://t.co/XeNtTsf3kg
— businessline (@businessline) November 28, 2024
Dr. Reddy's Laboratories is rising as it launches Toripalimab (Loqtorzi) in India, a drug used to treat nasopharyngeal carcinoma (NPC), a form of head and neck cancer.
Aster DM Healthcare is rising as it reportedly nears an agreement to merge with Blackstone-backed Quality Care India. The combined entity will consist of over 10,000 beds, making it one of India’s largest hospital chains in terms of revenue and bed capacity.
Geojit BNP Paribas upgrades Exide Industries to 'Buy' from 'Hold' but lowers the target price to Rs 517 per share. This indicates a potential upside of 14.8%. The brokerage is positive about the company's medium and long-term outlook due to its focus on developing EV batteries, greenfield expansion of Li-ion batteries, and strong order book. It expects the firm's revenue to grow at a CAGR of 8.2% over FY25-26.
Zomato completes its qualified institutional placement (QIP), raising Rs 8,500 crore by issuing 33.7 crore shares at Rs 252.6 each. The company intends to use the proceeds primarily to expand its quick commerce unit, Blinkit, and advertising & marketing initiatives.
#Zomato on Friday completed its Qualified Institutional Placement, raising Rs 8,500 crore via an allocation of 33.65 crore shares at Rs 252.62 per share.https://t.co/EMXDtp1zaW
— ETMarkets (@ETMarkets) November 29, 2024
Fine Organic Industries announces the resumption of manufacturing operations on November 28, following a fire incident at a nearby plant in Badlapur, Maharashtra, in January. The company is working to restore all other plant activities to normalcy.
Foreign institutional investors buy equity worth Rs 13,454.4 crore in the market over the past week, according to Trendlyne's FII dashboard. Index options witness the highest outflow of Rs 18,965.1 crore from foreign investors. Meanwhile, mutual funds are net sellers in the equity market, divesting Rs 1,528.1 crore during the same period.
Adani Ports is rising as it reportedly signs an agreement with the Kerala government to develop the Vizhinjam Seaport. Under the agreement, Adani Ports will continue the phased development of the Vizhinjam International Seaport. The first phase commissions next month, while the second and third phases are scheduled for completion by 2028.
Saurabh Gupta, CFO of Dixon Technologies (India), expects their EBITDA margins to improve by 100-120 bps over the next 24-28 months as mobile component production increases. He projects a revenue of Rs 35,000-40,000 crore for FY25. Gupta highlights plans to collaborate with more Android companies to manufacture phones.
Dixon mgmt to us,

- As mfg of mobile components goes up, EBITDA margins to go up 100-120 bps in next 24-28 months

- In talks with more android cos to make phones

- Can do revs of b/w Rs.35,000-40,000cr in FY'25#Nifty #BankNifty https://t.co/82lHhWVq5G
— Prashant Nair (@_prashantnair) November 29, 2024
PCBL announces the commissioning of the final 20,000 MTPA phase of its 40,000 MTPA specialty chemical capacity at Mundra, Gujarat. This increases the company's total manufacturing capacity to 7.9 lakh MTPA.
ICICI Direct retains its 'Buy' call on Brigade Enterprises with a higher target price of Rs 1,450 per share. This indicates a potential upside of 17.7%. The brokerage expects the sustained recovery in commercial leasing & hospitality to drive a stable growth momentum. It expects the firm's revenue to grow at a CAGR of 17.5% over FY25-26.
Zee Entertainment Enterprises is rising as its shareholders reject CEO & Managing Director Punit Goenka's reappointment as Managing Director.
CreditAccess Grameen falls sharply as Goldman Sachs downgrades its rating to ‘Sell’ from ‘Buy’ earlier, and lowers the target price to Rs 564. According to the brokerage, the earnings visibility looks dim since asset quality remains a concern. It adds that the accelerating decline in asset quality was a negative surprise (gross NPAs rose to 2.4% in Q2), and predicts further deterioration under the new MFI guidelines.
#GoldmanSachs doubles down on downgrading #CreditAccessGrameen's rating from 'Buy' to 'Sell'.

For more, visit our Research Reports section: https://t.co/x9gNkEkqzy pic.twitter.com/eUfOVijiwn
— NDTV Profit (@NDTVProfitIndia) November 29, 2024
Steel Authority of India (SAIL) signs a memorandum of understanding (MoU) with John Cockerill Group's Indian arm to adopt green technologies in iron and steelmaking. The partnership focuses on green steel, silicon steel, and advanced cold rolling processes for sustainable production.
Newgen Software Technologies is rising as it receives a purchase order worth Rs 32.4 crore from the Reserve Bank of India (RBI). The order includes the implementation and maintenance of the Regulatory Application Management System (RAMS).
Enviro Infra Engineers’ shares debut on the bourses at a 48.7% premium to the issue price of Rs 148. The Rs 650.4 crore IPO received bids for 89.9 times the total shares on offer.
Japan's largest banks, including Mizuho, Sumitomo Mitsui, and Mitsubishi UFJ, intend to continue supporting the Adani Group despite the bribery charges against Gautam Adani in the US. While some global banks are reassessing their exposure, Japanese lenders remain confident in Adani's ability to repay loans, citing the group's stable, cash-generating assets.
Japan’s biggest banks plan to maintain ties to billionaire Gautam Adani despite US bribery charges https://t.co/MUQnDv7H1V
— Bloomberg Markets (@markets) November 29, 2024
The Ministry of Power appoints NHPC's Chairman and Managing Director (CMD), Raj Kumar, as the new CMD of SJVN for three months.
NCC is rising as it secures an order worth Rs 3,389.5 crore from the Ken-Betwa Link Project Authority under the Ministry of Jal Shakti, Government of India. The project involves planning, design, engineering, and hydro-mechanical works for the Daudhan Dam on an engineering, procurement, and construction (EPC) basis.
PC Jeweller rises sharply as its board of directors approves the stock split of equity shares from one equity share with a face value of Rs 10 into ten equity shares with a face value of Rs 1; sets December 16 as the record date.
Reliance Industries’ wholly-owned subsidiary, Reliance Finance and Investments USA, enters a stock purchase agreement with Wavetech Helium to acquire a 21% stake for a total investment of Rs 101.4 crore ($12 million).
Nifty 50 was trading at 23975.65 (61.5, 0.3%) , BSE Sensex was trading at 79032.99 (-10.8, 0.0%) while the broader Nifty 500 was trading at 22570.25 (55.9, 0.3%)
Market breadth is highly positive. Of the 1894 stocks traded today, 1312 were gainers and 542 were losers.

Riding High:

Largecap and midcap gainers today include Adani Green Energy Ltd. (1,323.90, 21.8%), Adani Energy Solutions Ltd. (840.50, 15.6%) and Life Insurance Corporation of India (985.50, 5%).

Downers:

Largecap and midcap losers today include Colgate-Palmolive (India) Ltd. (2,889.75, -3.7%), Oil India Ltd. (490.60, -2.8%) and Cholamandalam Investment & Finance Company Ltd. (1,233.95, -2.7%).

Movers and Shakers

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

Top high volume gainers on BSE included Easy Trip Planners Ltd. (17.99, 10.2%), Piramal Pharma Ltd. (268.75, 9.5%) and Lloyds Metals & Energy Ltd. (1,049.90, 8.4%).

Top high volume losers on BSE were CreditAccess Grameen Ltd. (902, -8.6%), Poonawalla Fincorp Ltd. (354.45, -4.9%) and TVS Holdings Ltd. (1,1620, -2.3%).

Zee Entertainment Enterprises Ltd. (129.16, 4.9%) was trading at 5.8 times of weekly average. Life Insurance Corporation of India (985.50, 5%) and Gujarat State Fertilizer & Chemicals Ltd. (224.13, 4.8%) were trading with volumes 5.7 and 4.9 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

7 stocks hit their 52 week highs, while 3 stocks hit their 52 week lows.

Stocks touching their year highs included - Caplin Point Laboratories Ltd. (2,196.35, 4.2%), Laurus Labs Ltd. (567.15, 2.8%) and Dixon Technologies (India) Ltd. (15,807.40, 1.3%).

Stocks making new 52 weeks lows included - CreditAccess Grameen Ltd. (902, -8.6%) and Intellect Design Arena Ltd. (715.45, -0.2%).

22 stocks climbed above their 200 day SMA including Gujarat State Fertilizer & Chemicals Ltd. (224.13, 4.8%) and Rashtriya Chemicals & Fertilizers Ltd. (179.04, 3.9%). 5 stocks slipped below their 200 SMA including Kirloskar Oil Engines Ltd. (1,122.45, -3.0%) and Oil India Ltd. (490.60, -2.8%).

29 Nov 2024

The debate over cutting interest rates | Screener: Stocks outperforming a bearish market

By Swapnil Karkare

One can argue that the Reserve Bank of India works like a game of dominoes. The bank makes one move, and it sets off a whole series of cascading events.

There is a Tom & Jerry cartoon that shows RBI's dilemma (my mother used to claim that cartoons were useless, but I have now proven that this is not true). In the cartoon, Jerry tries to take a piece of cheese. A string tied to the cheese pulls an alarm clock, setting off a series of events which ends up with a very heavy box hitting Tom.

In its role as the central bank, RBI is constantly trying to avoid moves that will result in a heavy hit on the Indian economy. But right now, the economy is in a difficult mood. It's dealing with high inflation, a weakening rupee, and capital outflows.

What can the RBI do? On the one hand, prices are rising and the consumer price index (CPI) has crossed the 6% mark – the upper limit of the target inflation range. On the other hand, a slowing economy is hurting businesses.

Should RBI hold interest rates at the current level to bring inflation down, or should it cut rates to boost economic growth? The government is on the side of lower interest rates. Finance Minister Nirmala Sitharaman has pushed for lower rates to drive GDP growth, and Commerce Minister Piyush Goyal has made similar remarks. This has got many hoping that the RBI may cut rates at its next meet.

The central bank however, makes up its own mind. And it sees inflation as a dangerous creature, which if let loose with low interest rates, can create havoc. So it will probably hold rates steady in its December monetary policy meeting, despite the government's displeasure.

A screenshot of a social media post

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In this week's Analyticks,

Push and pull: The debate over interest rates cuts as the Indian economy slows

Screener: Rising stocks recovering towards year highs, and outperforming their sectors

Inflation: No immediate relief in sight

RBI is a cautious central bank, unlikely to cut rates without clear signals. And the big picture is unfriendly right now, because of persistent inflation coming from rising food prices. These increases are partly due to unseasonal rains, which destroyed crops like onions and tomatoes, and strained already fragile supply chains. In October, vegetable prices surged by 42% year-on-year (YoY), driving up the CPI to a 14-month high of 6.2% YoY.

Commerce Minister Piyush Goyal, has suggested that the RBI can ignore food inflation when setting rates. However, food makes up nearly half of household expenditure for many Indians. The central bank cannot just ignore the effect of rising food prices on overall demand.

Despite hopes that food inflation will ease over the next few months as supply conditions improve – thanks to higher mandi arrivals, adequate reservoir levels, and better rabi sowing, the outlook right now is unclear. The State Bank of India (SBI) estimates that consumer inflation will stay higher than the RBI's projection (4.8-4.9% vs. 4.5%) till the end of FY25. This dampens hopes for a rate cut even by February, according to SBI.

Near-term risks: A stronger dollar, and the China factor

Another complicating factor is the stronger US dollar. While a strong dollar has made Indian exports more competitive, India is now importing inflation, particularly in crude oil and other commodities. Being a net importer of goods, imported inflation is hitting India hard. Analysts at Goldman Sachs and UBS expect the dollar to stay strong under a Trump administration, which could keep pushing up the cost of imports.

Then there is China. China is for now, still grappling with deflation, low demand and falling fiscal revenues despite several rounds of stimulus. Lower demand has kept commodity and crude oil prices low.

The CME Group points out that if China can reverse its economic slowdown, we could see higher commodity prices worldwide, so the central bank is keeping an eye on the Chinese recovery.

Growth vs. Inflation: Walking a tightrope

Remember last month’s newsletter on India’s slowdown? We discussed how lower government spending dragged the economy down. However, post-elections, it has picked up compared to the previous year. The jump in government spending is expected to help the economy recover.

Motilal Oswal expects a better second half for businesses, driven by higher government expenditure, a robust kharif crop, and strong rural demand. A rate cut may not be needed urgently if these factors kickstart the recovery.

But there are still factors that can drive prices up, from unseasonal rainfall and supply chain issues to global upheaval that hits oil and commodity prices. Governor Das has warned that a rate cut right now would be "very premature" and "risky".

RBI is unlikely to budge on rate cuts, for now

With high inflation and upward price pressures expected to persist for at least a month, the RBI monetary policy committee is likely to hold rates. Government officials and ministers might not be thrilled with this decision, but it's a common scenario worldwide. Governments often push central banks to cut rates, and rarely call for hikes.

If the economic conditions improve — possibly by February or April 2025, when the MPC meets again —we believe the RBI will be ready to cut rates. Till then, the central bank is likely to keep both the government and investors in a sulk.

Screener: Rising stocks recovering towards year highs, and outperforming their sectors

General Industrials & IT stocks rise the most in the past month

In the current bearish market environment where the Nifty 50 is trading at a discount of 7.9% from its 52-week high of 26,277.6, we look at stocks that have risen the most over the past month, outperforming their sectors and trading near their year highs. This screener shows rising stocks over the past month trading near their year highs which are also outperforming their sectors.

The screener contains stocks from the banking & finance, pharmaceuticals & biotechnology, software & services, general industrials, and diversified consumer services sectors. Notable stocks in the screener are Kirloskar Brothers, Vijaya Diagnostic Centre, Jyoti CNC Automation, KFIN Technologies, Gillette India, Mastek, eClerx Services, and CCL Products India.

Kirloskar Brothers has risen the most, by 36.9% over the past month, helping it to outperform the general industrials sector by 33.4 percentage points. This has helped the stock to recover towards its 52-week high of Rs 2,684 per share and it is currently trading at a discount of 17%. The industrial machinery company (which manufactures engineered, industrial, agriculture and domestic pumps, valves, and hydro turbines) has been on the rise since reporting its Q2FY25 results on October 29 where its revenue and net profit grew by 14.7% YoY to Rs 1,050.1 crore and 89.9% YoY to Rs 95.1 crore, respectively. Its revenue increased on the back of Rs 1,162 crore worth of new orders during the quarter, while its net profit surged, led by higher volumes, cost control initiatives undertaken by the company, and a reduction in raw material prices.

Vijaya Diagnostic Centre comes in next after rising by 27.9% over the past month, outperforming the diversified consumer services sector by 28.6 percentage points. This has helped the stock to recover towards its 52-week high of Rs 1,250 per share and is currently trading at a discount of 7.4% from its year-high. This healthcare services company’s price rose on the back of its revenue and net profit growing by 28.7% YoY to Rs 187.5 crore and 25.9% YoY to Rs 41.9 crore, respectively, in Q2FY25. Its revenue increased on the back of an improvement in patient footfall and higher test samples.

You can find some popular screeners here.

28 Nov 2024

Five stocks to buy from analysts this week - November 28, 2024

By Ruchir Sankhla

1. Bharti Airtel:

Geojit BNP Paribas reiterates its ‘Buy’ rating on this telecom services provider with a target price of Rs 1,711, indicating an upside of 9.7%. The company reported a net profit growth of 168% YoY to Rs 3,593.2 crore in Q2FY25. Revenue increased by 11.6% YoY to Rs 41,728 crore, helped by improvements in the Indian mobile services, Airtel business, and home services segments.

The analyst highlights that average revenue per user (ARPU) of the company has increased to Rs 233 from Rs 203 a year earlier, supported by recent tariff hikes. Airtel's customer base grew 4.3% YoY to 563 million. The company installed 5,000 additional towers and 15,200 mobile broadband stations, enhancing connectivity. The capital expenditure for the quarter stands at Rs 7,675 crore, with Rs 6,260 crore incurred in India and Rs 1,415 crore in Africa.

Geojit expects a CAGR of 13.4% in sales, 14.8% in EBITDA, and 40.7% in net profit over FY25-26.

2. Sansera Engineering:

ICICI Direct retains its ‘Buy’ rating on this auto parts & equipment company, setting a target price of Rs 2,000, indicating an upside potential of 29.3%. The company reported a net profit growth of 7.8% YoY to Rs 50.7 crore in Q2FY25, while revenue rose 10.6% YoY to Rs 767.2 crore during the quarter.

Analysts Shashank Kanodia, Manisha Kesari and Bhavish Doshi highlight the company’s strong order book which stands at Rs 2,010 crore as of Q2FY25 (vs Rs 1,930 crore in Q2FY24), with 51% from higher-margin segments like non-auto and auto tech agnostic parts. Around 60% of orders are from international markets. Sansera is focusing on diversifying its revenue mix, aiming to lower automotive internal combustion engine dependency from 73% to 60% and improve tech agnostic and non-auto sectors to 20% each. The management aims to grow the non-auto segment with a CAGR of 35-40%.

Kanodia, Kesari, and Doshi expect a CAGR of 17% in revenue, 22.3% in EBITDA, and 36.4% in net profit for the period FY25-27, with revenue anticipated to reach around Rs 4,500 crore by FY27.

3. Sky Gold:

Edelweiss maintains a ‘Buy’ rating on this gems & jewellery manufacturer with a target price of Rs 4,500, indicating an upside potential of 16.9%. In Q2FY25, the company reported a net profit growth of 4X YoY to Rs 36.7 crore. Its revenue rose 98.7% YoY to Rs 788.6 crore, due to the recent duty cut which led to a surge in footfalls during the quarter.

Analyst Palash Kawale highlights that strong festive demand and recent acquisitions supported overall volume growth of 38% YoY to 345 kg/month this quarter. Management plans to increase volumes through new clients and higher sales to existing customers. Exports reached Rs 69 crore in Q2FY25 from Rs 14 crore in Q2FY24, contributing 9%, and are expected to reach 10% by year-end. Margin gains from value-added products, along with the sale of mutual fund holdings and reinvestment of the proceeds into fixed deposits, drove profitability.

Commenting on the results, Kawale said, “Given its record of overachieving its targets in the past combined with management’s execution capabilities, we believe that Sky Gold can be a long-term growth story.” The analyst expects revenue, EBITDA, and net profit to grow by 53%, 61%, and 73%, respectively over FY25-27.

4. CESC:

Sharekhan maintains a ‘Buy’ rating on this electric utilities company with a target price of Rs 217, indicating an upside of 24.5%. CESC reported a net profit growth of 1.4% YoY to Rs 353 crore in Q2FY25, driven by strong performances in Haldia and Dhariwal. Dhariwal Infrastructure and Haldia Energy’s profits increased by 19% and 12%, respectively, reaching Rs 81 crore and Rs 74 crore helped by higher power generation. However, the growth was partially offset by the standalone business due to higher interest expenses. The company’s revenue rose by 2% to Rs. 4,819 crore.

CESC plans to commission 1.5 GW of solar and 1.7 GW of wind capacity by FY29, with transmission connectivity of both expected to be granted in Q3FY25. Currently, 3.2 GW of wind projects are in engineering, procurement & construction (EPC) mode with Inox Wind, Suzlon, and Ecoren. Additionally, CESC Projects, a subsidiary of CESC, plans to set up a 10,500 TPA Green Hydrogen facility within the next three years.

The company implemented a 5.7% tariff hike starting in June to recover fuel and power purchase adjustment costs. The analysts say, "The 5.7% tariff hike, along with renewable energy investments and the turnaround of the distribution business, will boost earnings." They expect the company’s revenue and net profit to grow by 7.5% and 11.5%, respectively, over FY25-27.

5. Lemon Tree Hotels:

IDBI Capital maintains its ‘Buy’ rating on this hotels company with a target price of Rs 145. This indicates a potential upside of 11.6%. Lemon Tree Hotels’ (LTH) management highlights that Aurika Mumbai targets over 60% occupancy in Q3, up from 50% in Q2, by focusing on high-rate international crew business, which offers higher average rates and more predictable demand.

Analysts Archana Gude and Sarthak Awasthi note, “We remain positive on LTH within the mid-scale hotels segment due to its operational scale and the opening of Aurika, Mumbai, which will further boost earnings." They believe the management's strong outlook on inventory expansion and debt repayment is encouraging despite margin challenges in FY25 due to cost escalations.

In Q2FY25, the company reported a revenue growth of 21% YoY to Rs 284.4 crore, beating Trendlyne Forecaster estimates by 1.6%. However, net profit fell 27% due to lower available rooms and higher expenses from ongoing renovations.

The management is upbeat about growth in H2FY25, with October-November showing 15% revenue and 20% EBITDA growth YoY, driven by increasing wedding and banquet demand, particularly from destination weddings and social events. They expect renovation spending in FY25 to be Rs 100-110 crore, with 60% focused on high-value properties like Delhi and Mumbai.

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

(You can find all analyst picks here)

28 Nov 2024

Market closes lower, Godrej Properties' board approves QIP of shares worth Rs 6,000 crore

Nifty 50 closed at 23,914.15 (-360.8, -1.5%) , BSE Sensex closed at 79,043.74 (-1190.3, -1.5%) while the broader Nifty 500 closed at 22,514.35 (-177.4, -0.8%). Market breadth is in the green. Of the 2,257 stocks traded today, 1,269 were in the positive territory and 961 were negative.

Indian indices closed in the red, with the benchmark Nifty 50 index closing at 23,914.2 points. The Indian volatility index, Nifty VIX, increased by 3.9% and closed at 15.2 points. KEC International’s transmission & distribution (T&D) business secured new orders worth Rs 1,704 crore from Power Grid Corp of India.

Nifty Midcap 100 and Nifty Smallcap 100 closed in the green. Nifty High Beta 50 and S&P BSE IPO were among the top index gainers today. According to Trendlyne’s Sector dashboard, Utilities emerged as the best-performing sector of the day, with a rise of 2.4%.

Asian indices closed in the red except for Japan’s Nikkei 225 index, which closed in the green while European indices are trading higher. US index futures traded in the green, indicating a positive start to the trading session. Brent crude oil futures are trading in the green. OPEC+ has postponed its meeting on output cuts to December 5. Crude prices are currently around $75 per barrel, which is below the level for many OPEC members to meet their budgetary requirements.

HDFC Life Insurance sees a short buildup in its November 28 futures series, with open interest increasing by 50.8% and a put-call ratio of 0.8.
Vardhman Textiles' board approves a 31 million metre per annum increase in processed fabric capacity at Vardhman Fabrics, Budhni, Madhya Pradesh. The expansion aims to meet the growing demand for processed fabric in the export and domestic markets, with a total capital investment of approximately Rs 350 crore.
Godrej Properties' board of directors approves the qualified institutional placement (QIP) of shares worth Rs 6,000 crore at a floor price of Rs 2,727.4 per share.
Emkay maintains its 'Reduce' call on Mahindra & Mahindra with a target price of Rs 2,700 per share, indicating an upside of 7.3%. The brokerage cites concerns over slower electric vehicle (EV) sales, despite new launches, due to customer worries about charging infrastructure and resale value. It believes these issues may worsen with rising competition and competitive pricing in the EV sector over the next 6-12 months.
Amit Dahanukar, CMD of Tilaknagar Industries, highlights the launch of a new luxury brandy, Monarch Legacy, priced at Rs 6,750 for 750 ml in Maharashtra, and adds the company is receiving export orders. Dahanukar notes that brandy makes up 94% of the company’s sales and 20% of India's overall alcohol market. He projects a revenue of Rs 1,600-1,700 crore for FY25.
Tilaknagar says

???? Launched Luxury brandy 'Monarch Legacy', received export orders

????Will distribute Samsara Gin & Sitara Rum

FY25 Guidance????Revenue at Rs.1600-1700 cr

Appreciates 'Imperial Blue' ????doesn't clarify on interest in buying companyhttps://t.co/kizT3lbRbS
— Nigel D'Souza (@Nigel__DSouza) November 28, 2024
Servotech Power Systems rises sharply as it bags an order worth Rs 30.2 crore from Uttarakhand New and Renewable Energy Development Agency (UREDA) to develop a 5.6 MW on-grid rooftop solar power plant.
Borosil Renewables is rising as its board appoints Melwyn Moses as the new Chief Executive Officer (CEO) of the company, effective December 2.
NTPC Green Energy rises sharply as its subsidiary, NTPC Renewable Energy, begins commercial operations of 55 MW out of 105 MW at the Shajapur solar project in Madhya Pradesh.
ZF Group sells a 4.3% stake in its Indian subsidiary, ZF Commercial Vehicles Control Systems India, for Rs 1,022 crore. The move aims to increase financial flexibility for ZF's growth plans while maintaining its majority shareholding in the Indian market leader. Aditya Birla Sun Life Mutual Fund was among the buyers, and Wabco Asia's holding in the company has come down to 63.2% from 67.5%.
#ZFGroup sells 4.3 pc stake in #Indian #subsidiary for Rs 1,022 crorehttps://t.co/CfmPnSkG76
— Economic Times (@EconomicTimes) November 28, 2024
GAIL (India) is rising as its subsidiary, GAIL Mangalore Petrochemicals, re-engages with the process licensor, INEOS, to support the revitalisation of its 1.3 million metric tonnes per annum (MMTPA) purified terephthalic acid (PTA) manufacturing plant.
Sonata Software secures a multi-million dollar modernization deal in Australia with an access solutions client. The deal will help streamline the client’s operations across 13 countries in the Asia-Pacific (APAC) region by upgrading systems, improving data management, and enhancing reporting.
Tata Consultancy Services partners with the Indian Institute of Technology Kharagpur to set up an advanced research centre. The centre will focus on high-quality research in digital health, robotics, and intelligent systems, utilizing edge computing, embedded systems, and artificial intelligence.
Nuvama initiates coverage on consumer electronics makers - Electronics Mart India & Aditya Vision with a 'Buy' rating and a target price of Rs 237 and Rs 672, respectively. The brokerage notes that India’s electronic retailing is highly localized, making it hard to displace established players. It adds that both companies are competitors in the same segment but have adopted distinct and successful growth strategies, focusing on non-overlapping markets.
CONSUMER ELECTRONIC RETAILERS IN FOCUS

Nuvama Initiates Coverage on - Electronics Mart India & Aditya Vision

Electronics Mart
Rating: BUY & Target: 237
- Robust Cashflow from Telangana to support expansion into NCR
- Expect Revenue/EBITDA/PAT CAGR of 21%/20%/18% over… pic.twitter.com/zpWDdcfnyh
— Mangalam Maloo (@blitzkreigm) November 28, 2024
Lloyds Engineering Works is rising as it enters a partnership with Fincantieri SpA to jointly manufacture products for the Indian Navy and Coast Guard.
Ashoka Buildcon is rising as it secures an order worth Rs 192.7 crore from Madhya Pradesh Poorv Kshetra Vidyut Vitaran (MPPKVVCL), Jabalpur. The project includes setting up 11 kV lines, LT lines, transformer substations, and related works to separate mixed feeders and transformers.
Natco Pharma sells a 14.4-acre land parcel in Telangana for a cash consideration of Rs 115.6 crore, including infrastructure costs.
Sumit Gupta, Research Analyst at Centrum Broking, notes that Indian pharma companies are well-positioned to benefit from opportunities arising from the US Biosecure Act. After a solid Q2 performance, US market-focused companies will likely outperform their peers focused on the domestic market. Gupta’s top picks in the sector are Sun Pharmaceutical Industries and Dr. Reddy's Laboratories.
Indian #pharma companies likely to gain in long run from U.S. Biosecure Act, believes #CentrumBrokings' Sumit Gupta.

Read ??https://t.co/q94XlxnPnz
— NDTV Profit (@NDTVProfitIndia) November 28, 2024
NBCC (India) rises sharply as it signs a memorandum of understanding (MoU) with Housing & Urban Development Corp (HUDCO) to develop a 10-acre institutional plot in Noida Sector 62. NBCC will serve as the project management consultant, and the project is estimated to cost Rs 600 crore.
Ujjivan Small Finance Bank rises sharply as it sells its written-off loans portfolio and non-performing assets (NPAs) worth Rs 270.4 crore to an asset reconstruction company (ARC) for Rs 40.6 crore.
BEML is rising as it secures an order worth Rs 2,501 crore from Chennai Metro Rail to design, manufacture, supply, test, and commission standard gauge metro rolling stock. The contract also includes a 15-year comprehensive maintenance agreement and personnel training.
One97 Communications (Paytm) is rising as UBS maintains its ‘Neutral’ rating but raises the target price to Rs 1,000. The brokerage highlights that the new target price reflects a significant improvement in the company’s share price. It anticipates revenue-driven growth as most of the cost optimization is already complete. UBS also expects the company to achieve an adjusted EBITDA breakeven by Q4FY25.
#MarketsWithMC | UBS predicts Paytm to hit adjusted EBITDA breakeven by Q4, doubles price target

Read for more ????https://t.co/ABLCPILJY4 #Paytm
— Moneycontrol (@moneycontrolcom) November 28, 2024
Nazara Technologies rises as its board of directors approves the preferential allotment of 89.6 lakh equity shares worth Rs 855 crore at an issue price of Rs 954.3 per share.
KEC International rises to a new all-time high of Rs 1,094.7 as its transmission & distribution (T&D) business secures new orders worth Rs 1,704 crore from Power Grid Corp of India. The contract includes the design, supply, and installation of 765 kV transmission lines and GIS substations.
PCBL is rising as the Andhra Pradesh government allots a 116.6-acre land parcel to the company to set up a chemical manufacturing facility in the state with an expected capex of Rs 3,718 crore.
Waaree Renewable Technologies rises sharply as it receives a term sheet for a Rs 1,233.5 crore project to set up a 2,012.5 megawatt peak direct current (MWp DC) ground-mount solar photovoltaic (PV) project.
Nifty 50 was trading at 24,289.35 (14.5, 0.1%), BSE Sensex was trading at 80,297.56 (63.5, 0.1%) while the broader Nifty 500 was trading at 22,732.70 (41, 0.2%).
Market breadth is highly positive. Of the 1,881 stocks traded today, 1,352 showed gains, and 488 showed losses.

Riding High:

Largecap and midcap gainers today include Adani Total Gas Ltd. (803.85, 15.8%), Adani Green Energy Ltd. (1,087.20, 10%) and Adani Energy Solutions Ltd. (726.85, 10%).

Downers:

Largecap and midcap losers today include SBI Life Insurance Company Ltd. (1,428.60, -5.1%), Max Financial Services Ltd. (1,140.30, -4.0%) and Mahindra & Mahindra Ltd. (2,898.70, -3.5%).

Crowd Puller Stocks

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

Top high volume gainers on BSE included Adani Total Gas Ltd. (803.85, 15.8%), ITI Ltd. (295.67, 7.3%) and Ujjivan Small Finance Bank Ltd. (35.84, 6.9%).

Top high volume losers on BSE were SBI Life Insurance Company Ltd. (1,428.60, -5.1%), Max Financial Services Ltd. (1,140.30, -4.0%) and HDFC Life Insurance Company Ltd. (657.70, -3.4%).

Prism Johnson Ltd. (192.12, 2.1%) was trading at 14.8 times of weekly average. Indian Renewable Energy Development Agency Ltd. (208.41, 5.7%) and Birla Corporation Ltd. (1,208, 4.9%) were trading with volumes 5.3 and 4.7 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

10 stocks took off, crossing 52 week highs,

Stocks touching their year highs included - Caplin Point Laboratories Ltd. (2,107.35, 1.2%), eClerx Services Ltd. (3,463, 0%) and EID Parry (India) Ltd. (866.70, 1.7%).

20 stocks climbed above their 200 day SMA including ITI Ltd. (295.67, 7.3%) and Indian Renewable Energy Development Agency Ltd. (208.41, 5.7%). 13 stocks slipped below their 200 SMA including HDFC Life Insurance Company Ltd. (657.70, -3.4%) and Indigo Paints Ltd. (1,430.75, -2.0%).

27 Nov 2024

Market closes higher, Siemens' Q2FY25 net profit grows 45.4% YoY to Rs 830.7 crore

Nifty 50 closed at 24,274.90 (80.4, 0.3%), BSE Sensex closed at 80,234.08 (230.0, 0.3%) while the broader Nifty 500 closed at 22,691.70 (129.3, 0.6%). Market breadth is highly positive. Of the 2,264 stocks traded today, 1,521 were on the uptick, and 710 were down.

Nifty 50 closed higher after rising in the afternoon session. The Indian volatility index, Nifty VIX, fell 4.4% and closed at 14.6 points. Adani Group stocks rose after the company clarified that its chairman, Gautam Adani, and other executives are not facing bribery charges, according to the US Department of Justice.

Nifty Smallcap 100 and Nifty Midcap 100 closed in the green. S&P BSE Utilities and BSE Power Index were among the top index gainers today. According to Trendlyne’s sector dashboard, Commercial Services & Supplies emerged as the top-performing sector of the day, with a rise of 6%.

Asian indices closed mixed, while European indices are trading mixed. US index futures are also trading mixed, indicating a cautious start to the trading session. Brent crude oil futures are trading higher as traders assess the potential impact of a ceasefire deal between Israel and Hezbollah, alongside an unexpected, substantial draw in US oil inventories.

Money flow index (MFI) indicates that stocks like Eris Lifesciences, Indian Hotels, Mastek, and Krishna Institute of Medical Sciences are in the overbought zone.
BCL Industries rises sharply after it secures a letter of acceptance (LoA) to supply 60 lakh litres of Extra Neutral Alcohol (ENA) from its Bathinda distillery to Rajasthan State Ganganagar Sugar Mills over six months, with a potential 50% order increase.
Aptus Value Housing Finance India rises as 32.9 lakh shares (0.7% stake), worth approximately Rs 105.4 crore, change hands in a bulk deal on Tuesday at an average price of Rs 320.4 per share. Westbridge Crossover Fund is the seller in the transaction.
Sharekhan downgrades MOIL to 'Hold' from 'Buy' with a higher target price of Rs 330 per share. This indicates a potential upside of 5.8%. The brokerage expects the company's volumes to grow, led by higher domestic demand for steel, however, it believes that the uncertain pricing environment for manganese ore and steel will offset revenue growth. It expects the firm's revenue to grow at a CAGR of 18.1% over FY25-27.
Adani Group companies rise sharply after Adani Green Energy clarifies that Gautam Adani, Sagar Adani, and senior executive Vneet Jaain have been cleared of all bribery charges by the US Department of Justice. However, three charges are still part of the indictment.
Shares of Adani Group companies jumped up to 16% after Adani Green Energy issued a clarification saying Gautam Adani, Sagar Adani and senior executive Vneet Jaain are clear of all bribery charges as per the US Department of Justicehttps://t.co/qGI2Eek8EA
— ETMarkets (@ETMarkets) November 27, 2024
Siemens rises as its Q2FY25 net profit grows 45.4% YoY to Rs 830.7 crore, led by lower inventory costs and a deferred tax credit of Rs 74.5 crore. Revenue increases 11.3% YoY to Rs 6,373.6 crore, driven by improvements in the energy, smart infrastructure, mobility, and digital industries segments. It features in a screener of stocks outperforming their industry price change in the quarter.
Indian Overseas Bank is rising as it receives a tax return of Rs 1,238.3 crore from the Income Tax Department for FY20.
RailTel Corp of India is rising as it receives a work order worth Rs 15.2 crore from Kakinada Smart City Corp (KSCCL) for the supply, installation, testing, commissioning, and maintenance of the existing integrated command communication center in Kakinada.
Cyient DLM rises over 3% as HDFC Mutual Fund raises its stake in the company by 2.2% or 17.4 lakh shares, increasing its holding from 7.7% to 9.9%. The fund now owns a total of 78.1 lakh shares of the company.
#CyientDLM shares gain after #HDFCMutualFund increases stake. #NDTVProfitStocks

Read more ??https://t.co/x0CnzHPn7H
— NDTV Profit (@NDTVProfitIndia) November 27, 2024
Dabur India receives a tax demand order worth Rs 320.6 crore, including interest, from the CGST Commissionerate, Chandigarh.
TARC rises sharply as it sells 50% of its TARC Ishva residential project for Rs 1,350 crore. The project was launched in September 2024, and the company anticipates selling the remaining inventory soon.
Suprajit Engineering is rising as it signs a memorandum of understanding (MoU) with Chuo Spring, Japan. The partnership establishes a 50:50 joint venture (JV) in India to design, manufacture, and supply transmission cables. It also includes a technical assistance agreement, giving the JV access to Chuo Spring’s proprietary Japanese transmission cable technology.
Morgan Stanley has an 'Overweight' rating on LTIMindtree with a target price of Rs 7,050. The brokerage notes that while discretionary spending may remain pressured, the company’s sales momentum will stay positive, driven by a strong deal pipeline and new client acquisitions. However, other brokerages, like Nomura, remain cautious, highlighting the ongoing challenges in discretionary spending that could impact near-term growth.
#MarketsWithMC | Brokerages mixed on LTIMindtree as it outlines revenue target of $10 billion by FY31-32

Read on????https://t.co/uktmaKmJ5o #StockMarket
— Moneycontrol (@moneycontrolcom) November 27, 2024
NBCC (India) is rising as it secures a Rs 316 crore order from the Odisha government's ST & SC development department for upgrading primary school hostels under the state sector scheme.
CG Power and Industrial Solutions is rising as its subsidiary G.G.Tronics India secures a KAVACH order worth approx. Rs 500-600 crore from Chittaranjan Locomotive Works, West Bengal, Government of India. The order includes the supply, installation, testing, and commissioning of onboard KAVACH equipment as per RDSO specifications, including 11 years of annual maintenance.
Talbros Automotive Components surges as it secures orders worth Rs 475 crore, along with its joint ventures (JVs), in the domestic and export markets. These include a Rs 75 crore order for the EV segment, Rs 145 crore for exports, and various products like gaskets, heat shields, chassis, and hoses.
Morgan Stanley initiates coverage on Coal India with an ‘Overweight’ rating with a target price of Rs 525. The brokerage believes the increasing power demand outlook for India will help improve the company’s volumes and earnings growth. It adds that the strong balance sheet will support investments.
#BrokerageRadar | Morgan Stanley on Coal India: Initiate Overweight with target price of Rs 525@MorganStanley @CoalIndiaHQ #StockMarket pic.twitter.com/4drfiKqnUH
— ET NOW (@ETNOWlive) November 27, 2024
Kotak Mahindra Bank is rising as the Competition Commission of India (CCI) approves the bank's Rs 4,100 crore acquisition of Standard Chartered Bank's unsecured personal loans portfolio in India.
Zaggle Prepaid Ocean Services rises to its 5% upper limit as it enters an agreement with Mastercard Technology. Under this partnership, Mastercard will recommend Zaggle's SaaS platform, payment solutions, and card products to corporate customers and other ecosystem entities on a referral basis.
NTPC Green Energy’s shares debut on the bourses at a 3.2% premium to the issue price of Rs 108. The Rs 10,000 crore IPO received bids for 2.4 times the total shares on offer.
Amnish Aggarwal, Head of Research at Prabhudas Lilladher, believes the capital goods sector is currently one of the best performers in terms of financial results, as profit growth and order books for companies in this sector have been strong. He lists ABB and Siemens as the leading and most formidable industry players.
Amnish Aggarwal, Head of Research, Prabhudas Lilladher, says capital goods is perhaps the best performing sector in terms of numbers, because the profit growth of all the capital goods companies and even the order books have been looking quite decent.https://t.co/NtPjsVFdpo
— ETMarkets (@ETMarkets) November 27, 2024
NTPC is rising as its subsidiary, NTPC Green Energy, signs a memorandum of understanding (MoU) with Chhattisgarh State Power Generation (CSPGCL) to develop 2000 MW renewable energy projects in the state. NTPC Green also forms a 50:50 joint venture with Maharashtra State Power Generation (MAHAGENCO) to develop, operate, and maintain renewable energy parks in the state.
Lumax Auto Technologies is rising as it acquires a 60% stake in Greenfuel Energy Solutions' alternate fuels business for Rs 153.1 crore through its wholly-owned subsidiary, Lumax Resources, to enter into the green and alternate fuels segment.
Olectra Greentech is rising as it gives a guarantee to REC for a loan worth Rs 2,500 crore issued by its promoter's step-down subsidiary, Evey Trans (MSR). Evey Trans will use the proceeds to manufacture buses.
Wipro rises to its 52-week high of Rs 596 per share as it extends its partnership with Marelli for the next four years. As part of the agreement, Wipro's FullStride cloud will migrate Marelli's Milan data centre and other local server rooms to the cloud to centralise their operations.
Nifty 50 was trading at 24,196.65 (2.2, 0.0%), BSE Sensex was trading at 80,121.03 (117.0, 0.2%) while the broader Nifty 500 was trading at 22,563.75 (1.3, 0.0%).
Market breadth is overwhelmingly positive. Of the 1,891 stocks traded today, 1,308 were in the positive territory and 535 were negative.

Riding High:

Largecap and midcap gainers today include Adani Total Gas Ltd. (694.05, 19.8%), Adani Power Ltd. (523.05, 19.5%) and Adani Enterprises Ltd. (2,397.80, 11.5%).

Downers:

Largecap and midcap losers today include UNO Minda Ltd. (1,046.50, -2.9%), Bajaj Holdings & Investment Ltd. (10,221.85, -2.4%) and Ipca Laboratories Ltd. (1,529, -2.4%).

Volume Shockers

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

Top high volume gainers on BSE included Engineers India Ltd. (201.85, 9.7%), Aster DM Healthcare Ltd. (478.60, 8.8%) and Aditya Birla Real Estate Ltd. (2,796.20, 7.6%).

Top high volume loser on BSE was ZF Commercial Vehicle Control Systems India Ltd. (12,427.95, -13.7%).

Quess Corp Ltd. (691.75, 6.2%) was trading at 15.4 times of weekly average. R R Kabel Ltd. (1,464, 0.2%) and HBL Power Systems Ltd. (616.40, 6.5%) were trading with volumes 5.6 and 4.6 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

11 stocks hit their 52 week highs, while 5 stocks were underachievers and hit their 52 week lows.

Stocks touching their year highs included - eClerx Services Ltd. (3,462.85, 2.5%), Federal Bank Ltd. (212.88, -0.4%) and HDFC Bank Ltd. (1,812.30, 1.5%).

Stocks making new 52 weeks lows included - Adani Energy Solutions Ltd. (660.80, 10%) and ZF Commercial Vehicle Control Systems India Ltd. (12,427.95, -13.7%).

14 stocks climbed above their 200 day SMA including KEI Industries Ltd. (4,319.75, 6.1%) and Indian Energy Exchange Ltd. (171.71, 3.4%). 6 stocks slipped below their 200 SMA including Sunteck Realty Ltd. (511.55, -2.3%) and Craftsman Automation Ltd. (4,990.60, -2.1%).

26 Nov 2024

Chart of the Week: IT and banking sectors outperform Nifty, while FMCG and auto struggle

By Aditi Priya

Over the past quarter, the Indian market has turned volatile, as both global and domestic pressures pile up. As the dollar strengthened and US elections resulted in a Trump win, foreign Institutional Investors (FIIs) were net sellers over the past quarter, with total net sales amounting to Rs 67,601 crore in equity. India’s Q2FY25 GDP growth is also expected to show a slight slowdown.

According to rating agency ICRA, the GDP growth rate is expected to dip marginally to 6.5%, compared to 6.7% in the previous quarter. However, the RBI has maintained its FY25 GDP growth forecast at 7.2%. It has adjusted the second-half estimate to 7.4%, despite a weaker first quarter and has revised the second-quarter forecast to 7% (down from 7.2%). Heavy rainfall and weaker corporate profits have contributed to this slowdown. India's retail inflation also increased to 6.2% in October, up from 5.5% in the previous month, primarily driven by higher food prices, surpassing RBI’s upper tolerance level of 6%. Madan Sabnavis, Chief Economist, Bank of Baroda described the pace of consumer price inflation as shocking. He noted, “While inflation for cereals and pulses may ease gradually, vegetables will take longer to stabilize. Core inflation also shows an upward trend, particularly in personal care products, as rising input costs are passed on to consumers.” This, he said, makes a rate cut in December unlikely.

While overall market sentiment has been negative, several sectors have outperformed the Nifty50 index in the past quarter. Key sectoral indices like IT, financial services, banking, services and realty have been resilient, delivering strong returns amid tough conditions. On the other hand, sectors such as metal, infra, auto, FMCG, energy and oil & gas have struggled, underperforming the broader market due to weaker consumer demand, as well as global uncertainty and inflationary pressure.

In this week’s Chart of the Week, we take a look at Trendlyne’s Indices Dashboard to identify the sectors that have outperformed and underperformed the flagship Nifty50 over the past quarter.

IT sector rebounds and emerges as the top-performing sector over the past quarter

The IT sectoral index Nifty IT has emerged as the best-performing sector, posting a 7.3% gain over the past quarter. Average revenue rose by 6.6% YoY in Q2FY25, driven by strong demand for emerging technologies such as Generative AI, machine learning, and cloud transformation. Tech Mahindra saw YoY net profit jump in triple digits, with a jump of 132.8%.

Its growth was fueled by positive sequential growth across all verticals, except manufacturing and healthcare. IT companies got a boost due to interest rate cuts in the US and EU. Salil Parekh, CEO of Infosys, notes, “Historically when interest rates are cut and inflation is better controlled in Western Europe and the US, spending on large technology programs tends to rise.”

The financial services and banking sector indices also outperformed Nifty50, rising 3.5% and 2.5%, respectively, over the past quarter. Banks saw higher YoY growth in deposits in Q2FY25 compared to Q1FY25, driven by increased efforts to attract deposits through higher rates and innovative schemes. Punjab National Bank, the second-largest public sector bank, recorded a 10.9% YoY growth in domestic deposits, up from 8.1% in Q1FY25.

The services sector index has risen 2.1% over the past quarter, with Zomato’s net profit increasing by 33.7% YoY for Q2FY25. The telecom services company Bharti Airtel saw a massive increase in the net profit to Rs 2,517.6 in Q2FY25 from a loss of Rs 293 crore in Q2 last year.

The Nifty Realty Index has also outperformed Nifty50, posting a return of 1.1% over the past quarter. The festive season typically sees an increase in consumer and business activity boosted by new project launches. Developers like Oberoi Realty reported strong net profit growth. It reported a profit of Rs 463.6 crore in Q2FY25, compared to a net profit of Rs 194.4 crore in the same quarter last year.

Oil & Gas, FMCG and Infrastructure are top losers over the past quarter

The Nifty Oil & Gas index has significantly underperformed Nifty50, falling 16.9% over the past quarter. This decline is primarily due to the poor performance of oil marketing companies (OMCs) such as Indian Oil, Bharat Petroleum, and Hindustan Petroleum, which reported a substantial drop in net profit (between 70-99%) during Q2FY25. The Q2 profit came in well below expectations, as weaker oil refining margins and larger-than-expected inventory losses pushed core profit before tax (PBT) into the negative territory.

The Nifty FMCG index saw a 8.8% decline over the past quarter. Rising costs and inflation impacted FMCG companies’ topline and bottom line. To counter rising raw material costs, many companies took steps to control expenses, which slightly helped reduce the impact on their profits. ITC stood out as one of the few exceptions, posting a 15.8% increase in revenue in Q2FY25, beating its Forecaster estimate. Other companies such as Colgate-Palmolive, Britannia, Nestlé, and Dabur fell short of their revenue estimates.

The Nifty Auto index has fallen 9.4% over the past quarter. This was mainly due to the passenger vehicle segment seeing a 1.8% drop in Q2FY25 compared to the same period last year, likely due to demand saturation in urban markets and sales disruptions caused by the extended monsoon. Commercial vehicles also recorded an 11% decline in Q2FY25 compared to the previous year, which was likely driven by a slowdown in industrial and construction activity.

The Nifty Infrastructure index has declined by 6.6% over the past quarter. UltraTech Cementsaw a decline of 33.9% YoY in the net profit in Q2FY25. The cement and construction company, Larsen & Toubro’s net profit also fell 26.5% in Q2. Additionally, the government has spent only Rs 3.1 lakh crore on capex by August 2024, or 27% of its annual target. This leaves a 73% shortfall, compared to 37.4% spent in the same period last year.

The Nifty Metal index has fallen by 4% over the past quarter, with 9 out of its 15 constituents, including Tata Steel, Hindustan Zinc, Hindalco Industries, Hindustan Copper, and Jindal Steel, falling during this period