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The Baseline
15 Nov 2024
Superstar investors turn cautious, shuffle their portfolios | Screener: Stocks in the PE buy zone with high target price upsides
By Tejas MD

Indian equity markets initially celebrated Donald Trump’s win in the US presidential race, rising 1.1% on Nov 6—only to take a sharp U-turn the next day, falling 1.2% as investors took a closer look at his policy plans, which include aggressive tariffs on imports.  Trump in his first term was a temperamental head of state, and he has already complained about India's trade policies: "India is very big with tariffs". Investors are in wait and watch mode this time around.

Indian markets have been moody since September 26. Foreign institutional investors (FIIs) kicked off a historical selling spree, dragging indices downward. Amid the turbulence, domestic institutional investors (DIIs) have emerged as the market’s backbone, stepping in with record-breaking purchases and mitigating the slide.

But, there are still worrying signs. Inflation has been simmering since July, and may have now boiled over.

In October, India’s CPI inflation rose 6.21%, surpassing the expected 5.8% due to high food inflation. 

Indian superstar investors were wary of rising markets and soaring valuations in Q1FY25. And in hindsight, they may have made the right decision. The same caution is visible in Q2, as these investors slowed the pace of investments and sold considerably more than they bought. 

Which hidden gems did superstar investors bet on? And which sectors are they worried about? 

In this week’s Analyticks,

  • Superstar investors get picky in their investments
  • Screener: Stocks in the PE buy zone with high durability scores and price upsides

Let’s dive in.

Superstar investors shuffle their portfolios, trim stakes

Superstar investors made strategic portfolio changes in Q2FY25, with selling activity once again outpacing buying.

Many top superstar investors saw their net worth decline (as of November 11), as recent shareholding data for Q2FY25 came in. The drop is from volatility in key holdings, and strategic selling across multiple companies. 

Notably, the net worth of Rakesh Jhunjhunwala and Associates (now managed by Rare Enterprises), Ashish Kacholia, and Dolly Khanna fell by over 10% as of Nov 11.

Major superstar investors see net worth fall in Q3 after major sells

Vijay Kedia stands out with a 9.4% net worth increase, driven by strong gains in his top holdings—Tejas Networks and Neuland Laboratories—which rose over 20% in the past month. 

Dolly Khanna’s portfolio suffered the largest decline, falling 22.3%, as she reduced her stake in several companies, and with her top holding, Chennai Petroleum Corp, experiencing a 31% drop.

Rare Enterprises also saw its portfolio fall, primarily due to stake reductions. Of the 27 stocks in the portfolio, 17 saw a reduction, with Tata Motors and Baazar Style Retail being the only ones where Jhunjhunwala's stake increased.

Stocks sold by superstar investors outnumber the new buys

Overall, superstar investors appear cautious, showing restraint in both new acquisitions and increasing stakes in existing holdings. Top investors trimmed stakes in 91 companies while adding to just 37. 

Ace investor Sunil Singhania, for instance, refrained from buying new stocks or increasing his stake in any company, instead reducing holdings in 13 out of 22 companies.

New stakes: Superstars pick financially strong and newly listed companies

Two major themes come to light when looking into the buy list of superstars – strong financials and newly listed companies. 

Barring E2E Networks and ASM Technologies, all other companies’ Trendlyne Durability score is in the ‘Good’ category. A high Durability score indicates consistently good financial performance: stable revenues, profits, cash flows and low debt. Newly listed companies that don’t have durability scores are not included in this list.

Superstar investors are buying rising stocks with good financial health

20 Microns and POCL Enterprises top the list with a durability score of 90. When overall DVM scores are considered, POCL Enterprises and Emkay Global Financial Services come out on top as they score a ‘Good’ rating across all three metrics, making them both ‘Strong Performers’. Interestingly, these three top-scoring stocks were added by Dolly Khanna to her portfolio in Q2. 

Even the big investors got sucked into the IPO frenzy in Q2 

One major theme among the buys is superstar investors picking newly listed companies, as the IPO frenzy continues in India, especially the Small and Medium Enterprise (SME) segment. 

Out of 19 new buys, six are newly listed companies. Only Baazar Style and Stanley Lifestyles were Main Line IPOs among these six newly listed stocks. 

All six companies listed in the green, with TAC Infosech’s listing gains at 187.3%. But here’s the kicker - four out of these six companies have fallen in the past quarter, with TBI Corn declining 32.7%. Volatility in the market has affected newly listed companies as well. 

Superstar investors’ new buys in IPOs lag in the past quarter after listing above issue price

The top performer here is Vijay Kedia’s SME stock, TAC Infosec. This software and services company has risen 47.2% in the volatile past quarter. 

A focus on performance: Superstar investors sell overvalued, underperforming small and mid-caps

A major theme across the sell list by superstars is that these stocks are either in the sell zone (trading higher than their historical PEs) or are underperforming the Nifty 50 in the past quarter. 

Only three companies among the 19 sells are in the PE buy zone - Arvind Fashions (Sold by Akash Bhanshali), Mitsu Chem Plast (sold by Porinju Veliyath) and Ujjivan Small Finance Bank (sold by Dolly Khanna). 

Most stocks sold by superstar investors trade in PE Sell Zone

Interestingly, all stocks sold were small or mid-cap companies. In addition, half of the stocks sold have underperformed the benchmark index in the past quarter. 

Textiles sector dominates the superstar sell list 

Textiles apparel & accessories and commercial services & supplies sectors dominate the sell list, followed by chemicals & petrochemicals.

The sells list also includes a loss-making company (negative net profit TTM) - Deepak Spinners. 

Vijay Kedia’s 2020 bet Tejas Networks stands out 

When we look at long-term bets by these superstars, Vijay Kedia’s Tejas Networks and Mukul Agrawal's Neuland Labs come out on top. Tejas Networks and Neuland Labs contribute 2.5% and 7.9% of their portfolios respectively. 

Best performing long-term holdings: Kedia’s Tejas Networks, Mukul Agrawal's Neuland Labs


Interestingly, high-performing Neuland Labs is Kedia’s third-largest holding as well, leading to a sharp rise in Kedia’s portfolio over the past two years.

Bhanshali’s Gujarat Fluorochemicals (32% of total holding value) and Khanna’s Chennai Petroleum Corp (22% of total holding value) on the other hand, are lagging since they bought these stocks. However, Bhanshali's net worth has almost tripled in the past two years due to high performance in their other holdings and fresh buys in new stocks. 

Screener: Stocks in the PE buy zone with high durability scores and target price upsides

Auto stocks have the highest Forecaster target price upside

In the current volatile market environment, where the Nifty 50 has fallen 3.4% over the past month, we look at stocks in the buy zone with strong durability and high target price upside. This screener shows technically strong stocks with high durability scores and target price upside.

Stocks from the automobile & auto components, FMCG, software & services, and cement & construction sectors appear in the screener. The most noticeable stocks in the screener are Signatureglobal (India), Tata Motors, Emami, EIH, Motherson Sumi Wiring India, 3M India, ACC, and Quess Corp.

Tata Motors has one of the highest Forecaster target price upsides, of 38.6% over the next 12 months. But the stock has declined by 27.6% over the past quarter due to lower retail sales. This cars & utility vehicles company has a good Trendlyne Durability score of 85 and a Piotroski score of 8, indicating still healthy financials. ICICI Direct believes that the company’s healthy margins, return ratios, and low leverage on the balance sheet will help in long-term growth.

Emami also features in the screener with a Forecaster target price upside of 26.6% over the next 12 months. This personal products company also has a good Trendlyne Durability score of 80 and a Piotroski score of 9. Anand Rathi expects the company’s growth trajectory to continue on the back of a niche product portfolio, leading market position, recovery in rural sales (50-55% of total revenue), improvement in distribution, direct-to-consumer (D2C) brands, and digital ventures. Emami has also struggled in the volatile market, and its price has fallen 17.3% over the past quarter, underperforming the FMCG sector by 8.2 percentage points.

You can find some popular screeners here.

 
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The Baseline
14 Nov 2024
By Aditi Priya

Elections took place this year in countries representing nearly half of the world’s population. From Taiwan’s January general election to the US presidential race in November, these pivotal votes came amid climate change, inflation, and global economic and geopolitical tensions. Key issues shaping the political landscape include the ongoing Russia-Ukraine war, conflicts in the Middle East, and trade friction between the US and China, the two largest economies.

In 2024, there has been a noticeable rise in far-right parties. Right-wing governments often emphasize traditional values, reduced government regulation, and lower immigration. This year saw numerous countries undergo political changes, with new leaders or governments adopting these ideologies. These shifts suggest the rise of policies that challenge the existing global political order.

Modi and Trump’s wins reflect rising rightward movements in India and the US

Narendra Modi’s win in the June election secured his third term as Prime Minister, extending the BJP's leadership, but with a smaller majority. The continuity is expected to shape India's economic policies, and its approach to global issues, including climate change and trade. Donald Trump’s recent victory in the US elections highlights that this trend of populist, right-wing leaders winning elections is a global one. These leaders and their parties capitalize on frustrations among working-class voters, particularly of global trade threatening their jobs, and rising immigration. The ongoing cost of living crisis as inflation drove up the price of groceries, also contributed to rising support for far-right movements. Trump's stance on immigration was a central theme in his campaigns, and he has promised that mass deportations will start as soon as he takes office. He’s also committed to ending birthright citizenship, and expanding travel bans.

According to Mohit Kumar, chief economist at Jefferies, immigration has become a particularly potent election issue in large Western economies grappling with aging populations and labor shortages. The increase in immigration from regions like Latin America, Africa, and the Middle East has helped fill job vacancies, but created a fertile ground for nationalist, populist movements.

Moody's ratings indicate that India stands to benefit from these shifts in power. The agency highlights that with Trump at the helm, escalating US-China tensions and potential investment restrictions in critical sectors could lead to a redirection of trade and investment. “In the Asia-Pacific, heightened US scrutiny in strategic sectors may prompt a move away from China, potentially weakening its economy and regional growth. In contrast, countries like India and ASEAN nations could gain new opportunities in this evolving landscape,” Moody's stated.

The European Union which includes countries like Hungary, Slovakia, France, Germany, Austria and Netherlands have also seen right-wing populist parties make strong gains or come to power in recent elections. This shift doesn’t seem to stem directly from factors like high immigration rates or poor economic conditions, but rather from broader geopolitical instability. European voters appear increasingly drawn to alternative approaches, signaling a desire for change.

Some nations shift left amid global changes

While voters in most major economies shifted to the right, there are a few countries that moved left. Left-wing governments advocate for greater social and economic equality, often supporting socially liberal ideas and representing socialist or progressive movements.

The United Kingdom also held elections this year, resulting in a victory for the center-left Labour Party after 14 years of Conservative rule. The UK has experienced several years of turbulence, some caused under the Conservative government and some by external factors, that have left many voters feeling pessimistic about the nation's future. The UK's exit from the European Union, followed by the COVID-19 pandemic and Russia’s invasion of Ukraine, severely impacted the economy.

 
Trendlyne Marketwatch
Trendlyne Marketwatch
14 Nov 2024
Market closes flat, Bharat Forge's net profit grows 13.2% YoY to Rs 243 crore in Q2FY25
By Trendlyne Analysis

Nifty 50 closed at 23,532.70 (-26.4, -0.1%) , BSE Sensex closed at 77,580.31 (-110.6, -0.1%) while the broader Nifty 500 closed at 21,963.10 (48.2, 0.2%). Market breadth is in the green. Of the 2,248 stocks traded today, 1,201 were on the uptrend, and 1,030 went down.

Indian indices closed in the red, with the benchmark Nifty 50 index closing at 23,532.7 points. The Indian volatility index, Nifty VIX, fell around 4.3% and closed at around 14.8 points. Zinka Logistics Solutions' Rs 1,114.7 crore IPO received bids for 0.3X the available 2.3 crore shares on offer on the second day of bidding. The retail investor quota got bids for 0.9X the available 41.9 lakh shares.

Nifty Midcap 100 and Nifty Smallcap 100 closed higher. Nifty Auto closed in the green, while Nifty PSU Bank closed in the red. According to Trendlyne’s sector dashboard, FMCG emerged as the worst-performing sector of the day, with a fall of 1.6%.

European indices are trading mixed. Major Asian indices closed mixed. US index futures are trading higher, indicating a positive start to the trading session. Walt Disney, Applied Materials, JD.com, and Oklo among others, are set to report their earnings later today. Investors will also be watching Fed Chair Jerome Powell’s economic outlook today, following a 25 bps rate cut earlier this month.

  • PI Industries sees a short buildup in its November 28 futures series, with open interest increasing by 31% and a put-call ratio of 1.3.

  • Ipca Laboratories rises as its Q2FY25 net profit grows by 50.6% YoY to Rs 244.1 crore due to lower net exceptional items and finance costs. Revenue rises 8.9% YoY to Rs 1,810.9 crore during the quarter. The company shows up in a screener of stocks outperforming their industry price change during the quarter.

  • Agro Tech Foods' board of directors approves the acquisition of a 100% stake in Del Monte Foods for a total consideration of Rs 1,300.1 crore.

  • Happiest Minds Technologies falls to its new 3-year low of Rs 732 as its net profit misses Forecaster estimates by 16.9% after declining 3% QoQ to Rs 49.5 crore in Q2FY25 due to higher finance costs. However, revenue increases 12.5% QoQ to Rs 521.6 crore, driven by higher sales from the product & digital engineering services segment during the quarter. The company appears in a screener of stocks underperforming their industry price change in the quarter.

  • S&P expects India's infrastructure spending and private consumption will drive strong economic growth, with GDP projected to expand by 6.5-7% annually during FY25-27. The firm also highlights that the country's positive economic outlook will help sustain the asset quality of banks. S&P forecasts the banking sector's non-performing loans will decline to about 3% of gross loans by March 31, 2025, due to healthier corporate balance sheets, stricter underwriting standards, and enhanced risk management practices.

  • Hindustan Aeronautics is rising as its Q2FY25 net profit grows by 22.1% YoY to Rs 1,510.5 crore, helped by inventory destocking. Revenue increases 6% YoY to Rs 5,976.3 crore during the quarter, while its EBITDA margin increases marginally by 30 bps. The company features in a screener of stocks with growing quarterly net profit and margin (YoY).

  • Zinka Logistics Solutions' Rs 1,114.7 crore IPO receives bids for 0.3X the available 2.3 crore shares on offer on the second day of bidding. The retail investor quota gets bids for 0.8X the available 41.9 lakh shares.

  • National Aluminium is rising as its net profit surges by 5.6x YoY to Rs 1,046 crore in Q2FY25, helped by lower raw materials and power & fuel expenses. Revenue grows by 30.9% YoY to Rs 4073.3 crore due to improvements in the chemicals and aluminium segments. It appears in a screener of strong-performing, under-radar stocks.

  • India’s WPI inflation rises to a four-month high of 2.4% in October, up from 1.8% in September, driven by a sharp increase in the prices of food items. Food articles inflation surged to 13.4% during the month, up from 11.5% in September.

  • Lumax Auto Technologies is rising as its net profit beats Forecaster estimates by 17.5% as it grows 56.5% YoY to Rs 42.9 crore in Q2FY25 due to lower cost on purchases of traded goods. Revenue increases 20.3% YoY to Rs 842.9 crore during the quarter. The company appears in a screener of stocks with book value per share improving over the past two years.

  • Banco Products surges to its 20% upper circuit as its Q2FY25 net profit surges by 109.8% YoY to Rs 138.7 crore, helped by inventory destocking. Revenue rises 23.8% YoY to Rs 888.8 crore during the quarter. The company's board of directors approves a bonus issue of shares to equity holders in the ratio of 1:1.

  • Vodafone Idea falls to its 52-week low of Rs 7.3 per share as its net loss misses Forecaster estimates by 11.5% despite contracting by 17.9% YoY to Rs 7,175.9 crore in Q2FY25 due to lower network & IT outsourcing and marketing, content, customer acquisition & service expenses. Revenue grows by 4.5% YoY to Rs 11,232.2 crore, helped by improvements in service revenue. It shows up in a screener of stocks with high interest payments compared to earnings.

  • Ceigall India reportedly plans to sell five road projects under the hybrid annuity model (HAM) in a deal valued at $540 million (approximately Rs 4,500 crore). Two projects are underway, while the other three are still pending clearances. The company plans to sell the assets once all five projects are completed.

  • Thermax rises sharply as its Q2FY25 net profit grows by 24.9% YoY to Rs 197 crore. Revenue increases by 12.8% YoY to Rs 2,671.4 crore, led by improvements in the industrial products, industrial infra, Groon Solutions, and chemical segments. It features in a screener of stocks with improving return on equity (RoE) over the past two years.

  • Deepak Nitrite's subsidiary, Deepak Chem Tech (DCTL), enters an agreement with Trinseo's German units to acquire polycarbonate resin technology and manufacturing assets, relocating them to Dahej, India, for a Rs 5,000 crore project producing 165,000 MT annually.

  • Rashtriya Chemicals & Fertilizers is rising as its net profit grows 52.2% YoY to Rs 78.6 crore in Q2FY25 due to lower cost of materials and inventory destocking. Revenue increases 3.2% YoY to Rs 4,289.6 crore, driven by higher sales from the trading segment during the quarter. The company appears in a screener of stocks where mutual funds increased their shareholding over the past two months.

  • Ramesh Kalyanaraman, Executive Director of Kalyan Jewellers, expects FY25 revenue growth to align with H1FY25 levels, with margins around 6.5%. He believes the company’s market share will improve to double digits compared to 7% currently. Kalyanaraman notes that demand remains strong even post-festive season.

  • Apollo Tyres' rises sharply as its Q2FY25 revenue increases by 2.5% YoY to Rs 6,437 crore, driven by growth in Asia Pacific, Middle East & Africa (APMEA) and Europe markets. However, net profit declines 37.3% YoY to Rs 297.5 crore due to higher raw materials and employee benefit expenses. The company appears in a screener of stocks with book value per share improving over the last two years.

  • Niva Bupa Health Insurance Co’s shares debut on the bourses at a 5.6% premium to the issue price of Rs 74. The Rs 2,200 crore IPO received bids for 1.8 times the total shares on offer.

  • Dilip Buildcon is falling as its revenue declines by 12.9% YoY to Rs 2,520 crore in Q2FY25, impacted by the engineering, procurement, & construction (EPC) projects & road infrastructure maintenance segments. However, net profit surges 242.8% YoY to Rs 235.2 crore, helped by lower raw materials and employee benefits expenses. It appears in a screener of stocks with high promoter stock pledges.

  • Pavitra Shankar, MD of Brigade Enterprises, anticipates strong demand in the luxury segment over the medium to long term. She notes that realizations have increased by 35% on a like-for-like basis over the past 18-24 months, while gross debt is around Rs 4,500 crore, with 90% of it securitized. The company continues to experience strong demand for real estate nationwide, particularly in the premium housing segment. Shankar highlights that the company filed the DRHP for its hospitality business on Oct 30th.

  • Torrent Power is falling as its net profit misses Forecaster estimates by 16.9% as it declines 8.5% YoY to Rs 481 crore in Q2FY25 due to reduced merchant power sales and renewable output. However, revenue increases 3.1% YoY to Rs 7,175.8 crore during the quarter. The company appears in a screener of stocks where mutual funds decreased their shareholding last quarter.

  • Godrej Industries rises sharply as its net profit surges by 229.5% YoY to Rs 287.6 crore in Q2FY25, helped by lower inventory costs. Revenue grows by 20.3% YoY to Rs 5,118.2 crore, driven by improvements in the chemicals, estate & property development, finance & investments, and dairy segments. It features in a screener of stocks with the highest consistent returns over the past five years.

  • Garden Reach Shipbuilders & Engineers is rising as its net profit beats Forecaster estimates by 12.7% as it grows 21.1% YoY to Rs 97.8 crore in Q2FY25 due to lower cost of products for resale. Revenue increases 28.4% YoY to Rs 1,152.9 crore during the quarter. The company appears in a screener of stocks with improving ROE over the past two years.

  • Eicher Motors rises sharply as its net profit grows 8.3% YoY to Rs 1,100.3 crore in Q2FY25, led by inventory destocking. Revenue increases by 5.2% YoY to Rs 4,616.9 crore during the quarter. It appears in a screener of stocks with the highest FII holding.

  • Nifty 50 was trading at 23,579.05 (20, 0.1%), BSE Sensex was trading at 77,636.94 (-54.0, -0.1%) while the broader Nifty 500 was trading at 21,972.50 (57.6, 0.3%).

  • Market breadth is highly positive. Of the 1,920 stocks traded today, 1,311 were gainers and 577 were losers.

Riding High:

Largecap and midcap gainers today include Eicher Motors Ltd. (4,883.70, 6.4%), Jio Financial Services Ltd. (318.35, 6.3%) and Deepak Nitrite Ltd. (2,638.50, 5.8%).

Downers:

Largecap and midcap losers today include Torrent Power Ltd. (1,559, -5.2%), PI Industries Ltd. (4,250, -4.4%) and Indraprastha Gas Ltd. (405.80, -3.3%).

Movers and Shakers

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

Top high volume gainers on BSE included Network18 Media & Investments Ltd. (84.82, 8.8%), Eicher Motors Ltd. (4,883.70, 6.4%) and Jio Financial Services Ltd. (318.35, 6.3%).

Top high volume losers on BSE were SKF India Ltd. (4,518.55, -7.4%), Torrent Power Ltd. (1,559, -5.2%) and PI Industries Ltd. (4,250, -4.4%).

Mishra Dhatu Nigam Ltd. (320.30, 4.5%) was trading at 23.5 times of weekly average. Westlife Foodworld Ltd. (705.90, -2.8%) and Godrej Industries Ltd. (931.95, -0.1%) were trading with volumes 9.1 and 7.2 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

1 stock took off, crossing 52 week highs, while 18 stocks were underachievers and hit their 52 week lows.

Stock touching their year highs included - HCL Technologies Ltd. (1,858.95, -0.3%).

Stocks making new 52 weeks lows included - Birla Corporation Ltd. (1,085.30, 0.1%) and IndusInd Bank Ltd. (1,017.15, -1.9%).

21 stocks climbed above their 200 day SMA including Deepak Nitrite Ltd. (2,638.50, 5.8%) and Zydus Wellness Ltd. (1,961, 5.0%). 39 stocks slipped below their 200 SMA including Crompton Greaves Consumer Electricals Ltd. (371.05, -3.6%) and Devyani International Ltd. (163.96, -3.0%).

 
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The Baseline
13 Nov 2024
Five stocks to buy from analysts this week - November 13, 2024
By Ruchir Sankhla

1. CCL Products India:

Axis Direct maintains its ‘Buy’ rating on this tea & coffee company with a target price of Rs 820, indicating an upside potential of 17.6%. In Q2FY25 its net profit grew 21.5% YoY to Rs 74 crore beating Forecaster estimates by 6.3%, while its revenue rose 21.4% to Rs 738.7 crore, driven by  approximately 10% volume growth during the quarter. 

Analysts Preeyam Tolia and Suhanee Shome note that the domestic business generated Rs 105 crore, with Rs 70 crore from the branded segment; the company aims for Rs 300 crore in branded sales by FY25. Analysts also mention that the company is expanding beyond Southern India into new markets. The Vietnam plant is set to start freeze-dried coffee production by Q3FY25, with high initial utilization, while the Indian plant will begin operations within a month, targeting 30% utilization in year one, 60% in year two, and 80% thereafter.

Tolia and Shome highlight the company’s steady performance despite fluctuations in coffee prices. They project a net sales CAGR of 21.5% and EBITDA growth of 29.9% for FY25-27, considering the impact of higher coffee prices, increased depreciation, and rising interest costs.

2. KEC International:

Sharekhan retains its ‘Buy’ rating on KEC International with a target price of Rs 1,100, indicating an upside of 13.9%. This heavy electrical equipment company reported a net profit growth of 53% YoY to Rs 85.4 crore in Q2FY25, helped by reduced erection & subcontracting and finance costs, while its revenue increased 13.4% YoY to Rs 5,119.9 crore during the quarter.

Analysts note that the company’s year-to-date order intake jumped 50% YoY to Rs 13,482 crore, mainly from Rs 9,000 crore in Transmission & Distribution (T&D) and Rs 1,350 crore in Railways. Management expects 20% growth in the T&D segment for FY25, supported by faster execution while the Civil segment anticipates 30% growth on a Rs 10,000 crore order backlog. KEC's new aluminum conductor plant, set to start dispatches in November, is expected to enhance competitiveness in T&D.

Analysts are optimistic about the company’s growth, given its strong order book of around Rs 42,500 crore (including L1). The brokerage forecasts a 16% revenue growth over FY25-27, along with steady margin improvement.

3. Blue Jet Healthcare:

ICICI Securities maintains a ‘Buy’ rating on this pharmaceuticals company with a target price of Rs 600, indicating a potential upside of 15.8%. Blue Jet Healthcare reported revenue growth of 16.2% YoY to Rs 220.3 crore in Q2FY25, outperforming Trendlyne’s Forecaster estimates by 10.8%.

Analysts Sanjesh Jain and Mohit Mishra say, “Rise in revenue was partly impacted by rising goods-in-transit. But this was offset by the strong ramp-up in cardiovascular molecule supplies to innovators.”

Analysts notes that the contrast media segment fell 11.1% YoY, due to longer European delivery times. However, Blue Jet expects growth in this area by CY25. The company recently started producing a new molecule (product) with an 80 kilolitres (KL) capacity, with invoicing starting in the fourth quarter of FY25. The pharma intermediates (PI)/ active pharmaceuticals ingredients (APIs) segment grew 172.1% YoY, supported by a new facility at Ambernath, and is on track for peak utilization by FY25 end.

Jain and Mishra expect the company to grow revenue sharply with a good new product pipeline, and expect stable margins over the next two years. They project EBITDA growth of 31.2% in FY25 and 29.9% in FY26.

4. Endurance Technologies:

Motilal Oswal reiterates its ‘Buy’ rating on Endurance Technologies with a target price of Rs 2,825, indicating an upside potential of 17.8%. This auto parts and equipment manufacturer reported a net profit growth of 31.3% YoY to Rs 203 crore in Q2FY25. Revenue rose 14.8% to Rs 2.939.2 crore during the quarter. According to Trendlyne’s DVM scores it's a strong performer that is getting expensive.

Analysts Aniket Mhatre, Amber Shukla and Aniket Desai highlight that the company’s European business also performed well, with revenue increasing by 6.4% YoY to €66.9 million (approximately Rs 600.8 crore). Analysts note order wins in the first half of FY25 totaled Rs 310 crore. Expansion plans include a new alloy wheel plant with a 4.5 million unit capacity, set to launch by September 2025, which will help Endurance increase its two-wheeler (2W) alloy wheel market share to 25%. Management also aims to increase its share of the four-wheeler business from 25% to 45% by FY30. 

Mhatre, Shukla, and Desai estimate a CAGR of approximately 14% in revenue, 17% in EBITDA, and 24% in PAT for FY25-27, driven by a recovery in key industries, including the domestic 2W and European PV sectors.

5. Blue Star:

BOB Capital Markets maintains a ‘Buy’ rating on this consumer electronics company with a target price of Rs 2,100, indicating a potential upside of 19.3%. Blue Star’s net profit rose 36.1% YoY to Rs 96.2 crore in Q2FY25. Revenue increased 20.6% YoY to Rs 2,294.5 crore during the quarter. Analyst Arshia Khosla highlights strong performance of the room air conditioner (RAC) segment in H1FY25, RAC volumes grew 53%. The company holds a 13.75% market share in RACs, with 50% of sales through modern retail formats.

The company is making progress in the commercial AC market, with a Rs 5,000 crore order book, fueled by sectors like data centers and commercial real estate. Blue Star is also expanding internationally, with successful shipments to the US, despite challenges in water cooler production and slowdowns in the European market.

Khosla expects a CAGR of 19% in revenue and 30% in earnings from FY25-27, driven by strong performance in the electro-mechanical projects (EMP) and unitary cooling products (UCP) segments, cost-saving initiatives, and enhanced operating efficiency.

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

(You can find all analyst picks here)




 
Trendlyne Marketwatch
Trendlyne Marketwatch
13 Nov 2024
Market closes lower, Kalyan Jewellers' net profit falls 3.4% YoY to Rs 130.6 crore in Q2FY25
By Trendlyne Analysis

Nifty 50 closed at 23,559.05 (-324.4, -1.4%) , BSE Sensex closed at 77,690.95 (-984.2, -1.3%) while the broader Nifty 500 closed at 21,914.95 (-416.1, -1.9%). Market breadth is sharply down. Of the 2,257 stocks traded today, 201 were on the uptick, and 2,046 were down.

Indian indices closed in the red, with the benchmark Nifty 50 index closing at 23,559.1 points. The Indian volatility index, Nifty VIX, increased by 5.7% and closed at 15.7 points. India’s CPI inflation jumped to a 14-month high of 6.2% in October, breaching RBI’s medium-term target of 2-6%, driven by surging food prices.

Nifty Midcap 100 and Nifty Smallcap 100 closed in the red, following the benchmark index. S&P BSE Allcap and S&P BSE Large MidCap were among the top index gainers today. According to Trendlyne’s Sector dashboard, Hardware Technology & Equipment emerged as the best-performing sector of the day, with a rise of 1.5%.

Asian indices closed mixed while European indices are trading in the green. US index futures traded in the red, indicating a cautious start to the trading session. Brent crude oil futures are trading in the green. Shopify soared 20% after the Canadian e-commerce retailer forecast Q4 revenue growth above estimates. Netflix was also in the spotlight after it announced that the advertising-tier of its streaming service now has 70 million monthly active users.

  • Relative strength index (RSI) indicates that stocks like Colgate-Palmolive (India), Asian Paints, and Aurobindo Pharma are in the oversold zone.

  • Kalyan Jewellers India falls sharply as its net profit declines by 3.4% YoY to Rs 130.6 crore in Q2FY25, caused by increased raw materials, employee benefits, and finance costs. However, revenue grows by 37.6% YoY to Rs 6,091.4 crore, led by improvements in the domestic and Middle Eastern markets. It shows up in a screener of stocks with the highest increase in promoter pledges.

  • Suven Pharmaceuticals is rising as its net profit beats Forecaster estimates by 41.2% as it grows 3.3% YoY to Rs 82.2 crore in Q2FY25. Revenue increases 11.5% YoY to Rs 257.7 crore, driven by a 40% YoY rise in CDMO business during the quarter. The company appears in a screener of stocks with increasing profits every quarter for the past two quarters.

  • 3M India falls sharply as its net profit declines 8.4% YoY to Rs 133.8 crore in Q2FY25 due to higher raw materials, inventory, finance, and employee benefits expenses. However, revenue grows by 6.8% YoY to Rs 1,129 crore, led by improvements in the safety & industrial, health care, and consumer segments. It appears in a screener of stocks with PE higher than industry PE.

  • NTPC Green Energy, the green energy subsidiary of NTPC, sets the price band for its initial public offering (IPO) at Rs 102-108. The issue, valued at Rs 10,000 crore, consists solely of a fresh issue of equity shares and is set to open on November 19.

  • Alkem Laboratories is rising as its net profit grows 11% YoY to Rs 688.6 crore in Q2FY25, driven by inventory destocking. Revenue decreases marginally YoY to Rs 3,414.7 crore during the quarter. The company appears in a screener of stocks where mutual funds increased their shareholding in the last quarter.

  • Zinka Logistics Solutions' Rs 1,114.7 crore IPO receives bids for 0.2X the available 2.3 crore shares on offer on the first day of bidding. The retail investor quota gets bids for 0.4X the available 41.9 lakh shares.

  • Geojit BNP Paribas upgrades KEC International to 'Buy' from 'Accumulate' with a higher target price of Rs 1,192 per share. This indicates a potential upside of 22.2%. The brokerage expects the company's revenue and margins to improve due to higher order wins in the transmission & distribution (T&D) segment, completion of legacy projects, and the government's focus on thermal and renewable energy projects. It expects the firm's revenue to grow at a CAGR of 15.1% over FY25-27.

  • According to a report by SBI Research, the Reserve Bank of India (RBI) is unlikely to cut interest rates in February due to ongoing inflationary pressures. The report forecasts a gradual easing of inflation beginning in January, with an average of 4.8-4.9% for FY25, still above the RBI's target of 4.5%.

  • Prism Johnson is falling as it reports a net loss of Rs 89.8 crore in Q2FY25 compared to a net profit of Rs 182.7 crore in Q2FY24, due to higher employee benefits, manufacturing, and finance costs. Revenue declines 7.9% YoY to Rs 1,699.2 crore, impacted by the cement, H&R Johnson, and insurance segments. It shows up in a screener of stocks with an increasing trend in non-core income.

  • Cello World is falling as its net profit misses Forecaster estimates by 6% despite growing 2.1% YoY to Rs 81.6 crore in Q2FY25. Revenue increases marginally YoY to Rs 490.1 crore, driven by headwinds in export demand, especially for writing instruments, during the quarter. The company appears in a screener of stocks with declining ROE over the past two years.

  • Varun Beverages' board of directors approves the acquisition of SBC Tanzania, SBC Beverages Ghana, Tanzania, and Ghana-based Pepsico licensed packaging and distribution companies for $169.6 million (approx. Rs 1,431.1 crore). The board also approves the acquisition of the remaining 39.9% stake in Lunarmech Technologies for Rs 200 crore.

  • The Society of Indian Automobile Manufacturers (SIAM) reports a 14.2% YoY increase in two-wheeler sales to 21.6 lakh units in October. Passenger vehicle sales rise 0.9% YoY to 3.9 lakh units.

  • Sula Vineyards is falling as its net profit declines 37.3% YoY to Rs 14.5 crore in Q2FY25. Revenue decreases 1.1% YoY to Rs 141.2 crore, driven by a slowdown in consumer demand, particularly in urban areas, during the quarter. The company appears in a screener of stocks with declining revenue every quarter for the past two quarters.

  • PNC Infratech plunges to its 52-week low of Rs 295.6 per share as its net profit declines by 43.6% YoY to Rs 83.5 crore in Q2FY25 due to higher employee benefits and finance costs. Revenue decreases by 24.2% YoY to Rs 1,463.8 crore, impacted by the road and water segments. It shows up in a screener of stocks with prices below short, medium, and long-term moving averages.

  • PNB Housing Finance falls as 2.6 crore shares (a 10% stake), worth approximately Rs 2,455 crore, reportedly change hands in a block deal at an average price of Rs 939.3 per share. Carlyle Group's arm, Quality Investment Holdings, is the likely seller in the transaction.

  • According to NSDL data, four IPOs have raised around Rs 18,534 crore this month. However, foreign institutional investors (FIIs) contributed only Rs 2,900 crore, making up just 15% of the total bids, a sharp drop from over 100% in September and 50% in October. Analysts believe FIIs are reducing their investments in India and globally due to the recent shift in US leadership.

  • KNR Constructions rises sharply as its net profit surges 3x YoY to Rs 441.5 crore in Q2FY25 on the back of a reduction in sub-contracting and spreading & assortment expenses. Revenue grows by 100.4% YoY to Rs 2,092.1 crore during the quarter. It appears in a screener of undervalued growth stocks.

  • ACME Solar Holdings’ shares debut on the bourses at a 13.2% discount to the issue price of Rs 289. The Rs 2,900 crore IPO received bids for 2.8 times the total shares on offer.

  • Swiggy’s shares debut on the bourses at a 7.7% premium to the issue price of Rs 390. The Rs 11,327.4 crore IPO received bids for 3.6 times the total shares on offer.

  • India’s CPI inflation jumps to a 14-month high of 6.2% in October, breaching RBI’s medium-term target of 2-6%, driven by surging food prices. Meanwhile, industrial production (IIP) rose 3.1% YoY in September, fueled by growth in manufacturing.

  • DCX Systems falls to its 5% lower limit as its net profit declines 73.7% YoY to Rs 5.2 crore in Q2FY25. Revenue is down 36.7% YoY to Rs 195.6 crore amid macroeconomic uncertainties and continued geo-political tensions in parts of the world. The company appears in a screener of stocks underperforming their industry price change in the quarter.

  • Ashoka Buildcon rises sharply as its net profit surges by 4.6x YoY to Rs 457 crore in Q2FY25, helped by raw materials and finance costs and a deferred tax return of Rs 37.9 crore. Revenue grows by 15.2% YoY to Rs 2,529 crore during the quarter. It features in a screener of stocks with rising net cash flow and cash from operating activities.

  • Bosch is rising as its net profit beats Forecaster estimates by 5.9% despite falling 46.3% YoY to Rs 536.7 crore in Q2FY25 due to unpredictable rainfall and several macroeconomic factors. However, revenue increases 6.4% YoY to Rs 4,394.3 crore, driven by increased sales in passenger cars and off-highway segments during the quarter. The company appears in a screener of stocks outperforming their industry price change in the quarter.

  • Kalpataru Projects International, along with its joint ventures and subsidiaries, secures orders worth Rs 2,273 crore. The orders include transmission & distribution (T&D) projects within India and international markets and residential building projects in India.

  • Nifty 50 was trading at 23,831.75 (-51.7, -0.2%) , BSE Sensex was trading at 78,495.53 (-179.7, -0.2%) while the broader Nifty 500 was trading at 22,261.80 (-69.3, -0.3%)

  • Market breadth is in the red. Of the 1,919 stocks traded today, 652 were in the positive territory and 1,229 were negative.

Riding High:

Largecap and midcap gainers today include Zydus Lifesciences Ltd. (963.75, 1.5%), Alkem Laboratories Ltd. (5,571.20, 1.2%) and Havells India Ltd. (1,614.10, 0.7%).

Downers:

Largecap and midcap losers today include Suzlon Energy Ltd. (54.03, -9.0%), Central Bank of India (52.02, -5.3%) and UCO Bank (41.61, -5.2%).

Volume Shockers

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

Top high volume gainers on BSE included KNR Constructions Ltd. (307.60, 8.2%), Suven Pharmaceuticals Ltd. (1,262.30, 4.8%) and Bharti Hexacom Ltd. (1,426, 3.7%).

Top high volume losers on BSE were Gujarat Narmada Valley Fertilizers & Chemicals Ltd. (545, -7.5%), Varroc Engineering Ltd. (500.05, -7.4%) and Century Plyboards (India) Ltd. (749.55, -6.1%).

PNB Housing Finance Ltd. (924.65, -6.0%) was trading at 30.5 times of weekly average. Medplus Health Services Ltd. (683.60, 1.2%) and Balkrishna Industries Ltd. (2,652.70, -3.3%) were trading with volumes 6.8 and 6.3 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

24 stocks hit their 52 week lows.

Stocks making new 52 weeks lows included - Asian Paints Ltd. (2,470.50, -0.2%) and Birla Corporation Ltd. (1,084.50, -1.7%).

6 stocks climbed above their 200 day SMA including KNR Constructions Ltd. (307.60, 8.2%) and Medplus Health Services Ltd. (683.60, 1.2%). 62 stocks slipped below their 200 SMA including Suzlon Energy Ltd. (54.03, -9.0%) and HBL Power Systems Ltd. (518.60, -6.9%).

 
Trendlyne Marketwatch
Trendlyne Marketwatch
12 Nov 2024
Market closes lower, Hyundai Motor's net profit down 15.5% YoY to Rs 1,375.5 crore in Q2
By Trendlyne Analysis

Nifty 50 closed at 23.883.45 (-257.9, -1.1%) , BSE Sensex closed at 78,675.18 (-821.0, -1.0%) while the broader Nifty 500 closed at 22,331.05 (-260.4, -1.2%). Market breadth is moving down. Of the 2,256 stocks traded today, 518 were on the uptrend, and 1,715 went down.

Nifty 50 closed lower after extending losses in the afternoon session. The Indian volatility index, Nifty VIX, rose 2.2% and closed at 14.6 points. Britannia Industries fell as its net profit declined 9.6% YoY to Rs 531.5 crore in Q2FY25 due to weak consumer demand amid higher commodity prices.

Nifty Smallcap 100 and Nifty Midcap 100 closed in the red. BSE Power and Nifty PSE Index were among the top index losers today. According to Trendlyne’s sector dashboard, Telecommunications Equipment emerged as the worst-performing sector of the day, with a fall of 4.8%.

Asian indices closed in the red, except for Indonesia’s IDX Composite and Sri Lanka’s CSE All-Share, which closed higher. European indices are trading in the red. US index futures are trading in the red as investors assess the potential policies of the incoming Trump administration indicating a negative start to the trading session. Brent crude oil futures are trading higher.

  • Money flow index (MFI) indicates that stocks like ITI, Syrma SGS Technology, and Crisil are in the overbought zone.

  • Alembic Pharmaceuticals is rising as it receives final approval from the USFDA for its abbreviated new drug application (ANDA) for Ivabradine tablets. The drug is a therapeutic equivalent of Amgen's reference-listed drug (RLD), Corlanor tablets, used in the treatment of heart failure. The drug has a market size of $145.3 million for the year ending September 2024, according to IQVIA.

  • Blue Dart Express is falling as its net profit declines by 14% YoY to Rs 62.8 crore in Q2FY25 due to higher freight, handling & servicing, employee benefits, and finance costs. However, revenue grows by 9.6% YoY to Rs 1,457.1 crore during the quarter. It appears in a screener of stocks with declining return on capital employed (RoCE) over the last two years.

  • Hyundai Motor India is falling as its net profit declines by 15.5% YoY to Rs 1,375.5 crore in Q2FY25 due to increased inventory and employee benefits expenses. Revenue decreases by 8.4% YoY to Rs 17,452.6 crore during the quarter. It shows up in a screener of stocks with medium to low Trendlyne momentum scores.

  • M.V. Narasimham, CFO of Dr. Reddy's Laboratories, emphasizes the company's plan to improve its IPM (Indian Pharmaceutical Market) ranking from 10th to 5th within five years. He highlights the growing presence in the chronic segment, including the US-based Sigma acquisition. Narasimham underlines the importance of biosimilars, with upcoming launches of Abatacept, Denosumab, and Rituximab.

  • Azad Engineering's net profit grows 8.1% YoY to Rs 21 crore, driven by inventory destocking and lower finance costs in Q2FY25. Revenue increases 34.6% YoY to Rs 111.5 crore during the quarter. The company secures an order of around Rs 340 crore ($40 million) from Arabelle Solutions, France, to supply key components for the nuclear power industry.

  • EPL rises sharply as its net profit surges by 72.3% YoY to Rs 87 crore in Q2FY25, owing to lower finance costs. Revenue grows by 8.8% YoY to Rs 1,100.2 crore on the back of an improvement in the Africa, Middle East & South Asia (AMESA), East Asia & Pacific (EAP), Americas and European markets. It features in a screener of stocks outperforming their industries in the last quarter.

  • HMA Agro Industries surges to its 10% upper circuit as its net profit surges 5.4x YoY to Rs 51.9 crore in Q2FY25, helped by inventory destocking and deferred tax returns. Revenue increases 22.7% YoY to Rs 1,478 crore during the quarter. It features in a screener of stocks with PEG lower than the industry average PEG.

  • Reports suggest that the Centre is considering relaxing quarterly spending limits to meet its capex target for FY25. Federal spending slowed in Q1 due to national elections, with total expenditure through September at 44% of the full-year target. Analysts suggest this weaker spending has contributed to the recent slowdown in India's high-frequency economic indicators.

  • NBCC (India) is rising as it receives work orders worth Rs 448.7 crore. These include a Rs 50 crore order from GAIL for office fit-out works in New Delhi, a Rs 136 crore order from New India Assurance for building demolition and construction in Mumbai, and a Rs 262.7 crore order from the Income Tax Department for constructing Pratyaksha Kar Bhawan and a residential complex in Kanpur.

  • UNO Minda surges as its Q2FY25 net profit grows 9% YoY to Rs 245.2 crore, owing to lower inventory costs. Revenue increases by 17% YoY to Rs 4,247 crore, attributed to improvements in the switches, lighting, and castings segments. It appears in a screener of stocks with high momentum scores.

  • Larsen & Toubro's arm, L&T Energy CarbonLite Solutions, secures a project worth over Rs 15,000 crore from NTPC to set up thermal power plants. The project includes two units of an 800-megawatt (MW) plant at Gadarwara in Madhya Pradesh and three units at Nabinagar in Bihar.

  • JP Morgan upgrades Life Insurance Corp of India to ‘Overweight’ from ‘Underweight’ and raises the target price to Rs 1,075. The brokerage believes the company will sustain its growth momentum, driven by a favourable shift in its product mix. It adds that LIC’s focus on high-ticket products will likely keep delivering strong results.

  • Oil & Natural Gas Corp is rising as its net profit beats Forecaster estimates by 11.1% despite falling by 25% YoY to Rs 10,272.5 crore in Q2FY25 due to higher raw materials, employee benefits, finance, and exploration well costs. However, revenue grows by 8.2% YoY to Rs 1.6 lakh crore, helped by the refining & marketing and petrochemicals segments. It features in a screener of stocks with improving cash flow from operations over the past two years.

  • NMDC is falling as its net profit misses Forecaster estimates by 18% despite growing by 18.1% YoY to Rs 1,211.6 crore in Q2FY25. Revenue increases 22.5% YoY to Rs 4,918.9 crore, driven by higher sales from the iron ore and pellet & other minerals segments. The company appears in a screener of stocks underperforming their industry price change in the quarter.

  • Rail Vikas Nigam is rising as it emerges as the lowest bidder for a project worth Rs 294.9 crore from South Central Railway to double the railway track between Navipet and Indalvai stations, covering 33.7 km. This work is part of the Mudkhed-Medchal doubling project in Telangana.

  • Ajay Patil, VP & Chief Financial Officer of Cummins India, maintains double-digit revenue growth guidance for FY25 and expects a stable demand environment across domestic markets. He notes the company has met demand for CPCB 4+ gensets and anticipates H2FY25 will be a key phase for price discovery. Patil expects the company to maintain its margin profile in H2, though he anticipates increased pricing competition.

  • Triveni Turbine rises sharply as its net profit surges by 41.6% YoY to Rs 90.9 crore in Q2FY25. Revenue increases by 29.4% YoY to Rs 520.7 crore, helped by a 25% YoY growth in orders to Rs 572 crore during the quarter. It features in a screener of stocks with dividend yield greater than the sector dividend yield.

  • L&T Technology Services rises sharply as it acquires a 100% stake in Intelliswift Software Inc and Intelliswift Software (India) for a total consideration of $110 million (approx. Rs 928.3 crore).

  • Sagility India’s shares debut on the bourses at a 3.5% premium to the issue price of Rs 30. The Rs 2,106.6 crore IPO received bids for 3.2 times the total shares on offer.

  • Vikas Gupta, MD-Operations of PG Electroplast, announces increased revenue guidance of Rs 4,250 crore for FY25. He highlights the company's fundraising plans for working capital requirements via the QIP route in FY25. He expects an asset turn of 4-5x & 18-20% ROCE on investments for the upcoming quarter.

  • Britannia Industries is falling as its net profit misses Forecaster estimates by 11.6% as it declines 9.6% YoY to Rs 531.5 crore in Q2FY25 due to weak consumer demand amid higher commodity prices. However, revenue rises 5.3% YoY to Rs 4,667.6 crore during the quarter. The company appears in a screener of stocks with declining profits every quarter for the past three quarters.

  • Jubilant Foodworks rises sharply as its net profit beats Forecaster estimates by 9.2% despite falling by 34.1% YoY to Rs 64 crore in Q2FY25 due to higher raw material, inventory, employee benefits, and finance costs. Revenue grows by 44.3% YoY to Rs 1,984.9 crore, driven by improvements in Domino's and emerging business segments. It appears in a screener of stocks with improving revenue for the past four quarters.

  • Bank of India is rising as its net profit grows 61.6% YoY to Rs 2,373.7 crore in Q2FY25. Revenue increases 16% YoY to Rs 17,354.6 crore, driven by improvements in the treasury, wholesale, and retail banking segments during the quarter. The bank's asset quality improves as its gross and net NPAs contract by 143 bps and 60 bps YoY, respectively.

  • Hindalco Industries rises as its net profit surges by 78% YoY to Rs 3,909 crore in Q2FY25, helped by lower power & fuel and finance costs. Revenue grows by 8.5% YoY to Rs 59,278 crore, attributed to an improvement in the Novellis, upstream & downstream aluminium, and copper segments. It features in a screener of companies reducing their debt.

  • Nifty 50 was trading at 24,219.20 (77.9, 0.3%), BSE Sensex was trading at 79,706.03 (209.9, 0.3%) while the broader Nifty 500 was trading at 22,680.85 (89.5, 0.4%)

  • Market breadth is surging up. Of the 1,896 stocks traded today, 1,245 were gainers and 612 were losers.

Riding High:

Largecap and midcap gainers today include UNO Minda Ltd. (1,002.60, 8.8%), Jubilant Foodworks Ltd. (636.85, 5.8%) and Macrotech Developers Ltd. (1,240.95, 4.5%).

Downers:

Largecap and midcap losers today include Britannia Industries Ltd. (5,027.55, -7.5%), Samvardhana Motherson International Ltd. (166.04, -5.0%) and Bosch Ltd. (33,278.50, -4.9%).

Crowd Puller Stocks

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

Top high volume gainers on BSE included KIOCL Ltd. (402.15, 12.2%), UNO Minda Ltd. (1,002.60, 8.8%) and Jubilant Foodworks Ltd. (636.85, 5.8%).

Top high volume losers on BSE were BASF India Ltd. (6,702.75, -14.8%), Jyothy Labs Ltd. (441.35, -7.6%) and Britannia Industries Ltd. (5,027.55, -7.5%).

Triveni Turbine Ltd. (647.95, 3.6%) was trading at 25.1 times of weekly average. The Ramco Cements Ltd. (910, 4.5%) and MMTC Ltd. (79.42, 1.8%) were trading with volumes 15.2 and 11.8 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

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

Stocks touching their year highs included - eClerx Services Ltd. (3,312.20, -2.0%), Federal Bank Ltd. (207.27, -0.2%) and Fortis Healthcare Ltd. (643.20, 3.1%).

Stocks making new 52 weeks lows included - Asian Paints Ltd. (2,474.85, -2.7%) and Birla Corporation Ltd. (1,103.65, -3.2%).

17 stocks climbed above their 200 day SMA including Macrotech Developers Ltd. (1,240.95, 4.5%) and HBL Power Systems Ltd. (556.85, 3.3%). 27 stocks slipped below their 200 SMA including Britannia Industries Ltd. (5,027.55, -7.5%) and Great Eastern Shipping Company Ltd. (1,124.90, -4.7%).

 
Trendlyne Marketwatch
Trendlyne Marketwatch
11 Nov 2024
Market closes flat, Premier Energies' Q2 net profit grows 3.9x YoY to Rs 206 crore
By Trendlyne Analysis

Nifty 50 closed at 24,141.30 (-6.9, 0.0%), BSE Sensex closed at 79,433.81 (-52.5, -0.1%) while the broader Nifty 500 closed at 22,591.40 (-54.3, -0.2%). Market breadth is sharply down. Of the 2,295 stocks traded today, 645 were gainers and 1,628 were losers.

Nifty 50 erased its gains in the afternoon session to close flat. The Indian volatility index, Nifty VIX, declined 1.4% and closed at 14.3 points. Tata Motors’ net profit declines 10% YoY to Rs 3,450 in Q2FY25. Revenue falls 3.5% YoY to Rs 1 lakh crore during the quarter.

Nifty Midcap 100 and Nifty Smallcap 100 closed in the red. Nifty IT was among the top index gainers today, while Nifty Healthcare was among the worst-performing indices. According to Trendlyne’s Sector dashboard, Hardware Technology & Equipment emerged as the best-performing sector of the day, with a rise of 2.5%.

Asian indices closed lower, except Japan’s Nikkei 225 which closed 0.2% higher. European indices are trading in the green. US index futures traded in the green, indicating a positive start to the trading session, in anticipation of the inflation data to come out this week. Brent crude oil futures are trading in the red.

  • Relative strength index (RSI) indicates that stocks like ITI, Page Industries, and Apollo Hospitals Enterprise are in the overbought zone.

  • Graphite India is falling as its net profit declines 75.7% YoY to Rs 195 crore in Q2FY25. Revenue decreases 18.9% YoY to Rs 643 crore, driven by 25.2% YoY lower sales in the graphite and carbon segment. The company appears in a screener of stocks where mutual funds increased their shareholding over the past two months.

  • Premier Energies' Q2FY25 net profit surges by 3.9x YoY to Rs 205.9 crore due to inventory destocking and a deferred tax return of Rs 20.2 crore. Revenue jumps by 121.4% YoY to Rs 1,553.6 crore, driven by improvements in the cell and module segments. It appears in a screener of stocks with the consistent highest return stocks over the past five years.

  • Keystone Realtors rises to its new all-time high of Rs 801.1 as its net profit rises 14.3X YoY to Rs 66.3 crore in Q2FY25 due to inventory destocking and lower finance cost. However, revenue decreases by 13.7% YoY to Rs 533.1 crore during the quarter. The company appears in a screener of stocks with book value per share improving over the last two years.

  • AMFI data shows that despite a 6% drop in Nifty and heavy FII outflows, mutual fund investors poured Rs 41,886 crore into equities in October, up 22% MoM. Debt funds saw a net inflow of Rs 1.6 lakh crore, reversing the previous month's Rs 1.1 lakh crore outflow. All equity categories saw inflows, with sectoral and thematic funds attracting the highest at Rs 12,278 crore.

  • Concord Biotech is rising as its net profit grows by 18.2% YoY to Rs 95.7 crore in Q2FY25, helped by inventory destocking and lower finance costs. Revenue increases by 18.4% YoY to Rs 320.2 crore during the quarter. It features in a screener of stocks with improving return on equity (RoE) over the past two years.

  • Geojit BNP Paribas upgrades TVS Motor to 'Buy' from 'Accumulate' with a lower target price of Rs 2,774 per share. This indicates a potential upside of 12.3%. The brokerage believes the company's domestic rural demand will remain strong, driven by favourable monsoons and better crop yields, with an expansion in exports for premium and electric vehicles. It expects the firm's revenue to grow at a CAGR of 18.5% over FY25-26.

  • Aarti Industries falls sharply to its new 3-year low of Rs 427 as its net profit misses Forecaster estimates by 29.6% after declining 42.3% YoY to Rs 52.3 crore in Q2FY25. However, revenue rises 11.9% YoY to Rs 1,627.5 crore, driven by a 22% YoY increase in non-energy business volumes during the quarter. The company appears in a screener of stocks underperforming their industry price change in the quarter.

  • Ankit Thakker, CEO of Jupiter Life Line Hospitals, expects a pick up in occupancies as newer capacities mature. He highlights the company achieved a 60% occupancy rate in Indore during Q2, with the overall average occupancy rate for H1FY25 rising to 67.2%, marking a 4.9% YoY increase. Thakker adds that the company is focusing on expanding in western India.

  • Orient Cement's net profit plunges by 90.6% YoY to Rs 2.3 crore in Q2FY25, caused by higher inventory and employee benefits expenses. Revenue declines by 24.2% YoY to Rs 547.6 crore during the quarter. It appears in a screener of stocks with declining net cash flow.

  • Ola Electric Mobility falls to its all-time low of Rs 70.6 per share as its revenue misses Forecaster estimates by 12.8% despite growing by 42.5% YoY to Rs 1,314 crore in Q2FY25, helped by an improvement in the automotive segment. Net loss contracts by 5.5% YoY to Rs 495 crore, driven by inventory destocking. It shows up in a screener of stocks with medium to low Trendlyne momentum scores.

  • KPI Green Energy appoints Alok Das as the new Group Chief Executive Officer (CEO) of KP Group, effective November 11.

  • Chintan Thakkar, CFO of InfoEdge (India), expects double-digit revenue growth in FY25, with the non-IT segment accounting for 45-50%. He also highlights the company’s branch expansion plans in Tier 2-3 towns.

  • Alembic Pharmaceuticals receives approval from the USFDA for its abbreviated new drug application (ANDA) for Diltiazem Hydrochloride extended-release capsules, used to treat hypertension. The capsules are equivalent to Bausch Health’s Cardizem CD extended-release capsules, which have an estimated market size of $105.3 million in the year ending June 2024, according to IQVIA.

  • Jupiter Wagons falls sharply as its Q2FY25 net profit misses Forecaster estimates by 22.9% despite growing by 9.3% YoY to Rs 89.7 crore, helped by inventory destocking. Revenue rises by 15.1% YoY to Rs 1,018.8 crore, driven by improvements in the railway wagons, CMS crossing, containers, wheels, axles, wheelsets, brake discs, and axle box segments.

  • Fortis Healthcare is rising as its net profit grows by 1.6% YoY to Rs 176.5 crore in Q2FY25. Revenue increases by 12.2% YoY to Rs 2,001.6 crore, driven by an improvement in the healthcare and diagnostics segments. It appears in a screener of stocks with rising net cash flow and cash from operating activities.

  • Goldman Sachs initiates coverage on United Spirits with a 'Buy' rating and a target price of Rs 1,650. The brokerage notes that India’s spirits market is experiencing a premiumisation trend, a shift the company is well-positioned to capitalise on. It adds that the India-UK trade deal could reduce Scotch import tariffs, potentially driving further growth in the category.

  • Asian Paints falls sharply to its new 3-year low of Rs 2,506 as its net profit misses Forecaster estimates by 36.8% after declining 42.4% YoY to Rs 694.6 crore in Q2FY25. Revenue decreases 5.3% YoY to Rs 8,027.5 crore, driven by muted consumer sentiments and extended rains and floods in some parts of the country during the quarter. The company appears in a screener of stocks with declining profits every quarter for the past two quarters.

  • Shipping Corp of India surges as its net profit grows by 4.4x YoY to Rs 291.4 crore in Q2FY25. Revenue increases 28.3% YoY to Rs 1,491.2 crore, driven by improvements in the liner, bulk carrier, tanker, and technical & offshore segments. It features in a screener of stocks with relative outperformance versus industry over the past week.

  • DCX Systems is rising as it receives an export order worth approximately Rs 460.3 crore ($54.8 million) from Lockheed Martin Global, USA, to supply electronic assemblies. The order is set for execution within 12 months.

  • Viren Prasad Shetty, Executive Vice Chairman and COO of Narayana Hrudayalaya announces the completion of capex for Health City Cayman Islands (HCCI), with its impact expected over the next 4-6 quarters. He anticipates government approval for the company's IP business in Cayman in the coming weeks. Shetty highlights that restricted inflows from Bangladesh were offset by strong performance in India, where the company will focus moving forward.

  • Welspun Corp falls sharply as its net profit declines by 25.4% YoY to Rs 287 crore in Q2FY25 due to higher employee benefits and finance costs. However, revenue grows by 19.2% YoY to Rs 3,364.2 crore, attributed to a reduction in the steel products segment. It appears in a screener of stocks with promoters decreasing their shareholding.

  • Life Insurance Corp of India is falling as its Q2FY25 net profit grows by 3.8% YoY to Rs 7,728.7 crore due to higher tax provisions. However, revenue grows by 11.7% YoY to Rs 2.3 lakh crore, driven by improvements in first-year premium, new business premium, and assets under management (AUM). It shows up in a screener of stocks with weak financials.

  • Solar Industries India receives an export order worth Rs 580 crore from an international client to supply defence products; to be delivered over the next five years.

  • Tata Motors’ net profit declines 10% YoY to Rs 3,450 in Q2FY25, missing Forecaster estimates by 30.1%. Revenue declines 3.5% YoY to Rs 1 lakh crore during the quarter. It features in a screener of stocks with declining revenue every quarter for the past two quarters.

  • Markets opened on a low note. Nifty 50 was trading at 24,061.20 (-87, -0.4%), BSE Sensex was trading at 79,034.15 (-452.2, -0.6%) while the broader Nifty 500 was trading at 22,518 (-127.7, -0.6%).

  • Market breadth is moving down. Of the 2,018 stocks traded today, 471 showed gains, and 1,504 showed losses.

Riding High:

Largecap and midcap gainers today include Biocon Ltd. (348.70, 8.5%), Power Finance Corporation Ltd. (481.85, 7.2%) and Power Grid Corporation of India Ltd. (329.80, 4.3%).

Downers:

Largecap and midcap losers today include Asian Paints Ltd. (2,543.10, -8.2%), UPL Ltd. (515.15, -7.6%) and Tube Investments of India Ltd. (3,620.20, -7.0%).

Movers and Shakers

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

Top high volume gainers on BSE included Biocon Ltd. (348.70, 8.5%), ITI Ltd. (327.35, 7.6%) and Power Finance Corporation Ltd. (481.85, 7.2%).

Top high volume losers on BSE were Asian Paints Ltd. (2,543.10, -8.2%), UPL Ltd. (515.15, -7.6%) and Aarti Industries Ltd. (439.75, -7.3%).

Devyani International Ltd. (174.60, 2.2%) was trading at 7.9 times of weekly average. Tube Investments of India Ltd. (3,620.20, -7.0%) and Chalet Hotels Ltd. (885.85, -0.7%) were trading with volumes 6.7 and 6.5 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

6 stocks took off, crossing 52 week highs, while 7 stocks were underachievers and hit their 52 week lows.

Stocks touching their year highs included - Federal Bank Ltd. (207.73, 0.5%), Indian Hotels Company Ltd. (729.75, -0.4%) and Coforge Ltd. (8,068, 1.4%).

Stocks making new 52 weeks lows included - Asian Paints Ltd. (2,543.10, -8.2%) and Astral Ltd. (1,713.55, -4.2%).

8 stocks climbed above their 200 day SMA including ITI Ltd. (327.35, 7.6%) and Power Finance Corporation Ltd. (481.85, 7.2%). 34 stocks slipped below their 200 SMA including C.E. Info Systems Ltd. (1,889.50, -8.2%) and UPL Ltd. (515.15, -7.6%).

 
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The Baseline
09 Nov 2024
Multibaggers dominate in a few sectors | Screener: Stocks which have held on to massive gains in a volatile market

What a difference a day makes. On November 4, the US presidential polls were a dead heat. Many experts predicted that Kamala Harris would squeak out a win, while prediction markets were betting on Trump. On election day Donald Trump swept to an easy victory, defeating Democrats even in the historic strongholds of the 'blue wall' states. 

What does this election result mean for India? A Trump administration would be more pro-market and pro-crypto. Trump, despite claiming to be 'a friend to India', is suspicious of globalization, and has promised a universal tariff of 10% on all US imports, and retaliatory tariffs on India. 

Still, as many are discovering today, trying to predict the future is a dangerous game. So rather than make predictions,  we look at the past and present. Past and present multibaggers, to be precise.

In a bull market, many investor portfolios are in the green. But when markets turn volatile, some stocks are better to hanging on to their gains than others.  

In this week's Analyticks:

The steady ships: Companies and sectors that are holding on to their gains in a volatile market

Screener: Multibagger stocks which are rising in the past quarter

Let's take a closer look.

As the multibagger count falls, which stocks are holding up? 

While investors watch the market mood closely, the still-standing Oracle of Omaha, Warren Buffett, has some advice: "Remember that the stock market is a manic-depressive." So amid the shifts that keep happening, we need to look for clear trendlines. 

A useful marker of market bullishness is the number of multibaggers in the stock universe. As momentum turned positive at the end of 2023, the number of stocks with more than 100% change in share price jumped sharply, peaking in March 2024. 

The momentum has slowed since then, although the decline has not been steep --  indices after all are still up 27% from September 2023.

The Nifty500 index however, shows a sharper swing. Gainers had surged by the end of March, but since then  there has been a broad decline. 

What is interesting are the stocks that have continued to surge. Currently, the big gainers in the Nifty500 are dominated by financial companies like exchanges (BSE, MCX), capital markets players (Motilal Oswal, CDSL, Nuvama Wealth), and funding agencies for the public sector (IREDA, IRFC). Manufacturing companies across industries are also upbeat - from consumer electronics players like Dixon Tech to equipment players like Kaynes Technology. In these sectors, the bullish sentiment has been consistent. 

Capital market players  in particular, have continued to outperform the market. Companies like Motilal Oswal, BSE and others are up by double-digit percentages over the past month. A surge in IPOs and inverstor interest in stocks and mutual funds has driven the growth of demat accounts, with an average of 4 million new accounts opening every month. And despite the muted forecasts for GDP, Indian manufacturing is showing signs of a recovery, with players across verticals reporting a jump in order book volumes and a rise in demand. 

Both trendline and sector specific movements are going to be key for investors in the coming months. While economists and analysts are seeing a slowdown in GDP growth, some sectors will stay resilient, keeping gains strong in the top performers in these segments.

Screener: Multibagger stocks which are rising in the past quarter

Quarter winners: Tech, consumer electronics, industrials are among the big gainers

The Indian equity markets have seen a massive sell-off of Rs 88,267.9 crore by foreign investors in the past month, resulting in the Nifty 50 falling by 3.2% in the same period. In this volatile market, we look at multibagger stocks which have continued their growth. This screener shows multibagger stocks which are rising in the past quarter despite a volatile market.

The screener is dominated by stocks from the software & services, pharmaceuticals & biotechnology, general industrials, banking & finance, and consumer durables sectors. Most notable stocks in the screener are Trent, Oracle Financial Services Software, Dixon Technologies (India), BSE, PB Fintech, Bharti Hexacom, Kalyan Jewellers India, and Siemens. 

Trent turns up in the screener after rising by 221.6% in the past year. This department stores company has continued this trend in recent months, rising 27.5% in the past quarter after posting positive results in Q1FY25 where its revenue and net profit grew by 54.8% YoY to Rs 4,150.4 crore and 126.3% YoY to Rs 392.6 crore, respectively. 

The growth in stock price is further supported by new Westside and Zudio store additions in August. The company, which has fallen 5.4% over the past month, is set to release its Q2FY25 results on Thursday with Trendlyne’s Forecaster expecting its revenue and net profit to grow by 42.8% YoY and 102.2% YoY, respectively.

Investor darling Dixon Technologies (India) has risen 173.7% in the last year. This consumer electronics company’s stock price increased by 23.9% in the past quarter, driven by strong Q2FY25 results. Its revenue grew by 133.2% YoY to Rs 11,528.4 crore on the back of an improvement in the mobile phones, electronic manufacturing services (EMS), home appliances, and lighting products segments. On the other hand, net profit increased by 263.3% YoY to Rs 389.9 crore during the quarter. The company’s stock was also added to the MSCI index on August 13. It also entered memorandums of understanding (MoUs) with HP and Asus on September 9 and September 13, respectively, to manufacture laptops.

You can find some popular screeners here.

 
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The Baseline
08 Nov 2024, 05:33PM
Five Interesting Stocks Today - November 08, 2024

1. Larsen & Toubro:

This construction & engineering company has risen 8.3% since October 30, after reporting its Q2FY25 results on that day and the announcement this week of the acquisition of a 21% stake in E2E Networks for Rs 1,407 crore. Its net profit and revenue grew 13% YoY to Rs 703.6 crore, and 20.1% YoY to Rs 62,655.9 crore during the quarter, respectively. This helped net profit and revenue to beat Trendlyne’s Forecaster estimates by 1.2% and 5.9% respectively. The company features in a screener of stocks with negative to positive growth in sales and profits with strong price momentum.

L&T’s revenue rose owing to improvements in infrastructure projects (51.9% of revenue), energy projects (14.2% of revenue), hi-tech manufacturing (3.5% of revenue), IT & technology services (19.2% of revenue), and financial services segments (6.2% of revenue). However, the company’s order inflow fell 10% YoY to Rs 80,045 crore due to a high base and heavy monsoons. 45% of the order inflow was from domestic clients, while international clients contributed 55%. 

In the earnings call, Larsen & Toubro’s Executive Vice President, P Ramakrishnan said, “With the current order book at Rs 1.5 lakh crore in H1FY25, we expect the order inflow to grow 10% YoY to Rs 3.3 lakh crore in FY25. This will help our group revenues to grow by 15% YoY during the fiscal year.”

Post the acquisition in E2E Networks, Larsen & Toubro entered a partnership with the company to provide GenAI solutions in India. L&T will utilise E2E’s cloud and AI cloud platform, and its expertise in data center management.

Post results, ICICI Direct maintains its ‘Buy’ call on L&T with a target price of Rs 4,262 per share. This indicates a potential upside of 16.9%. The brokerage believes the company’s order backlog growth and a pick-up in execution will help to beat its guidance for FY25. It expects the company’s revenue to grow at a CAGR of 14.7% over FY25-26.

2. Apollo Hospitals Enterprise: 

Thishospital chain surged 6.6% on Thursday following theannouncement of its Q2 results. Apollo reported a 15.6% YoY growth in revenue, at Rs 5,628 crore, with a 62.6% YoY increase in net profit at Rs 379 crore. Both revenue and net profit surpassedForecaster estimates by 1.5% and 5.2%, respectively. JPMorgan has maintained an ‘Overweight’ rating on the stock as the results were in line with estimates.

If we look at therevenue mix, the healthcare services segment, which contributes to more than half of the total revenue, saw a 13.8% YoY growth. This growth was driven by a higher occupancy rate of 73% this quarter, up from 68% last year, along with a 6% increase in average revenue per patient. The company plans to add over 1,700 beds by FY26, with another 1,800 expected in the following 3-4 years.

Apollo HealthCo, the company’s digital health and pharmacy arm contributing over 40% of the total revenue, grew 17% YoY. This segment turned profitable this quarter, reporting a net profit of Rs 19 crore with an EBITDA margin of 2.3%. In an interview with CNBC-TV18, Managing Director Suneeta Reddy said, “Apollo HealthCo will achieve a 7-8% EBITDA margin over the next three years, following the integration of Keimed.” She also noted that this merger will be EPS accretive, enhancing profitability from the first year.

Meanwhile, the retail health & diagnostics segment, Apollo Health & Lifestyle Ltd (AHLL), reported a Rs 4.6 crore loss this quarter. Reddyexpects AHLL to reach profitability by the end of this fiscal year. Apollo’s management indicated plans to enter the insurance business to boost overall margins. They highlighted that the license and other related formalities faced a one-quarter delay but expect it to be completed by Q3.

Post results, Motilal Oswalmaintains a ‘Buy’ rating on Apollo Hospitals, anticipating that its hospital business and Apollo 24/7 (part of Apollo HealthCo) will drive future earnings. They forecast a CAGR of 16% in revenue and 30% in net profit over FY25-27. With a target price of Rs 8,660, the stock presents a potential upside of over 16%.

3. ABB India:

This heavy electrical equipment company has fallen by 5.2% over the past week following the announcement of its Q3CY24 results on November 4. ABB India’s net profit grew by 21.4% YoY to Rs 440.5 crore owing to lower raw materials and inventory costs. However, it missed Forecaster estimates by 7.8%. Meanwhile, revenue increased 5.6% YoY to Rs 3,005.1 crore. 

During the quarter, revenue growth was driven by improvements in the robotics & motion (up 8% YoY) and electrification (11% YoY) segments. However, the process automation segment declined 12% YoY. Analysts highlighted that the company’s performance was below expectations due to lower-than-expected order inflows and execution. They note the quarter was impacted by a shift in the order book mix, with a higher share of long-gestation (to be executed in 18-24 months), large-sized orders. Large orders make up about 25% of the current order book.

In Q3, ABB India’s order inflow stood at Rs 3,342 crore, up 11% YoY. The electrification segment contributed 53% of the total inflow driven by large orders from the data centre segment for smart power and distribution solutions divisions.

ABB India’s order backlog as of September 30 stood at Rs 9,995 crore, an increase of 25% YoY, providing revenue visibility for the next few quarters. Commenting on this, T. Sridhar said “We are able to maintain the momentum of orders, comprising of both large as well as base orders, base orders being the maximum”.

Motilal Oswal maintains its ‘Buy’ rating on ABB India with a target price of Rs 8,500 crore. The brokerage remains positive on ABB due to its ability to benefit from high growth segments - electrification, data centre, and motion, as well as its wide offerings and deeper penetration network. It projects the company’s revenue and PAT to grow by 15% YoY and 51% YoY, respectively in CY24.

4. Cipla:

This pharmaceuticals company rose by 3% over the past week as the company’s manufacturing facility in Goa received a Voluntary Action Indicated (VAI) from USFDA after a routine inspection. Analysts expect that this could speed up the company’s gAbraxane development process. 

The drug is a chemotherapy treatment for various types of cancer. It was delayed for the past two years and in its recent commentary, the company’s management guided for a further delay till H1FY27 as it waits for further approvals.

The company declared its Q2FY25 result on 29th October. Its net profit rose by 15.2% to Rs 1,302.5 crore on the back of decline in finance and depreciation expenses, while its revenue rose by 5.7%. The firm beat Trendlyne’s Forecaster estimates for revenue by 0.2% and the net profit estimate by 7.2%. The stock appears in a screener of stocks where mutual funds increased shareholding in the past month.

In Q2FY25, the company’s revenue grew due to strong double-digit growth in the One Africa segment, emerging markets, and Europe. The One Africa business which includes South Africa, grew by 23.9% YoY on the back of Direct-to-Market (DTM) and Business-to-Business (B2B) categories in North Africa, and opportunistic tender wins, including vaccine tenders. However, the India segment grew by only 4.7% YoY as it witnessed slower seasonal growth.

Analysts note that currently, only one company—Sandoz(Switzerland), in partnership with Jiangsu Hengrui of China—has launched gAbraxane in the US market, with Cipla set to be the second player. Given the lack of competition in the generic market, they see this as a significant opportunity for Cipla. As a complex oncology product, Cipla has significant moat here and it’s expected to take longer for other players to enter the market. Analysts estimate gAbraxane could represent a $600-800 million opportunity, with Cipla potentially generating $80 million in sales by FY27.

The company’s CEO Umang Vohra said, “We are on track to achieve our margin guidance for the year, between 24.5-25.5%. The last 12 months have been audit heavy with our facilities of Invagen, Kurkumbh, Patalganga, China and Goa audited. All these facilities have been cleared with either a VAI or NAI.”On the drugs in development stage, he added, “De-risking of generic asthma drug Advair has been progressing as per expectations. We expect to launch it in H1FY26.”

KR Choksey has retained an ‘Accumulate’ rating on Cipla with a target price of Rs 1,680. The brokerage has increased its FY26 EPS estimate to Rs 62.6 from Rs 60.6 previously. It expects the company’s top-line to grow, especially in high-growth regions like South Africa and emerging markets. The brokerage anticipates a rebound in respiratory products in domestic business and launch of generic drug Advair by H1FY26.

5. Vedanta:

This metals stock was flat today, fell over 1.3% in the past week, and rose 5.9% up over the quarter. The company announced better than expected Q2 results that showed a turnaround in performance, reporting a net profit of Rs 5,603 crore for the September quarter as against a loss of Rs 915 crore in the quarter last year. Both the aluminium and oil businesses beat expectations, helping its overall net profit beat estimates by 79%. Weak zinc prices had hurt the business the previous year, 

Vedanta’s numbers were also helped by lower taxes -  taxes fell to Rs 2,030 crore this quarter, from Rs 9,092 crore in the same quarter last year. Net debt came down as well, falling by around Rs 4,400 crore QoQ to Rs 56,927 crore. This brings its Net Debt/EBITDA ratio to 1.49x, the best level in six quarters. 

Arun Mishra, the Executive Director of Vedanta, noted that this quarter delivered "our highest-ever first-half EBITDA of Rs 20,639 crore, with 46% growth YoY.” He said that he expected the rest of the year to be strong as well. “We believe the second half numbers will show a further ramp up, as major new projects come online." The cyclical metal business is right now in Vedanta's favour, with both aluminium and zinc prices up globally by double digits in the quarter.

The consensus from analysts on the stock is a buy.  In a separate press release, the company said that the proposed demerger of its businesses (where it will split its major businesses of zinc, oil, aluminium, power, steel and base metals into six separate listed entities) is on track. The demerger was expected to be completed by the end of FY25. However, the latest press note has mentioned no specific timeline or end date.

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
08 Nov 2024, 03:58PM
Market closes lower, Vedanta reports a net profit of Rs 4,352 crore in Q2FY25

Nifty 50 closed at 24,148.20 (-51.2, -0.2%), BSE Sensex closed at 79,486.32 (-55.5, -0.1%) while the broader Nifty 500 closed at 22,645.65 (-160.6, -0.7%). Market breadth is overwhelmingly negative. Of the 2,264 stocks traded today, 619 showed gains, and 1,627 showed losses.

Indian indices closed in the red, with the benchmark Nifty 50 index closing at 24,110.5 points. The Indian volatility index, Nifty VIX, declined 2.5% and closed at 14.6 points. State Bank of India's Q2FY25 net profit grew by 27.9% YoY to Rs 18,331.4 crore. Revenue grew 15.1% YoY to Rs 1.3 lakh crore, driven by improvements in the treasury, retail, and corporate banking segments. 

Nifty Smallcap 100 and Nifty Midcap 100 closed in the red, following the benchmark index. Nifty Growth Sectors 15 and Nifty IT were among the top index gainers today. According to Trendlyne’s Sector dashboard, Telecommunications Equipment emerged as the best-performing sector of the day, with a rise of 4.3%.

Asian indices closed lower while European indices are trading in the red with an exception of the Russian MOEX & RTSI index which is trading in the green. US index futures traded in the green, indicating a positive start to the trading session. Brent crude oil futures are trading in the red. In his press conference following the rate cut decision, Fed Chair Jerome Powell suggested that the US economy could outperform expectations next year and that inflation is still on track to return to the 2% target.

  • Money flow index (MFI) indicates that stocks like Crisil, Syrma SGS Technology, and Deepak Fertilisers & Petrochemicals Corp are in the overbought zone.

  • Vedanta is rising as it reports a net profit of Rs 4,352 crore in Q2FY25 compared to a net loss of Rs 1,783 crore in Q2FY24, helped by a 77.7% YoY reduction in taxes. However, revenue falls by 1.6% YoY to Rs 38,934 crore due to a decline in the oil & gas and iron ore segments. It appears in a screener of stocks with the highest recovery from their 52-week lows.

  • Sharekhan retains its 'Hold' rating on Carborundum Universal with a higher target price of Rs 1,620 per share. This indicates a potential upside of 13.9%. The brokerage expects the company's growth will continue due to rising capex, China +1 strategy, government initiatives to support domestic manufacturing, and increasing demand for specialty products. It expects the firm's revenue to grow at a CAGR of 10.2% over FY25-27.

  • State Bank of India's Q2FY25 net profit grows by 27.9% YoY to Rs 18,331.4 crore, helped by reduced employee benefits expenses. Revenue increases 15.1% YoY to Rs 1.3 lakh crore, driven by improvements in the treasury, retail, and corporate banking segments. The bank's asset quality improves as its gross and net NPAs decline by 42 bps YoY and 11 bps YoY, respectively.

  • Zinka Logistics Solution, a company providing a digital platform for truck operators, sets the price band for its initial public offer (IPO) at Rs 259-273 per share. The offer includes a fresh issue of Rs 550 crore and an offer for sale of up to 2.1 crore shares by existing shareholders and promoters. The issue opens on November 13.

  • Ashok Leyland is rising as its net profit grows 34.1% YoY to Rs 705.6 crore in Q2FY25, helped by reduced raw material costs. However, revenue falls by 1.8% YoY to Rs 11,261.8 crore due to a reduction in the commercial vehicles segment. It features in a screener of stocks with decreasing promoter pledges.

  • Swiggy's Rs 11,327.4 crore IPO receives bids for 2.4X the available 16 crore shares on offer on the third day of bidding. The retail investor quota gets bids for 1X the available 2.9 crore shares.

  • MRF is falling as its net profit declines by 19.8% to Rs 470.7 crore in Q2FY25 due to higher raw materials and employee benefits expenses. However, revenue grows by 11.2% YoY to Rs 6,994.3 crore during the quarter. It shows up in a screener of stocks with current prices below short, medium, and long-term moving averages.

  • Jefferies initiates a 'Buy' rating on TBO Tek with a target price of Rs 2,000. The brokerage notes the company's gross transaction value (GTV) has grown at a 24% CAGR from FY19-24, driven by a 16% CAGR in the air segment and a 39% CAGR in the hotels segment. Jefferies projects a 20% CAGR for TBO Tek's GTV over FY25-27. It also expects the current valuations to sustain, given the strong growth outlook for the company.

  • Aditya Birla Fashion and Retail reports a net loss of Rs 185.9 crore in Q2FY25, compared to estimates of a Rs 216.4 crore loss. Revenue grows by 13% YoY to Rs 3,643.9 crore during the quarter. It features in a screener of stocks where mutual funds increased shareholding over the past two months.

  • Cummins India is rising as its net profit grows 36.5% YoY to Rs 449.4 crore in Q2FY25. Revenue increases by 30% YoY to Rs 2,613.9 crore, driven by the engines and lubricants segments. It features in a screener of stocks with improving return on equity (RoE) over the past two years.

  • Sanofi India is falling as its net profit plunges by 45.9% YoY to Rs 82.2 crore in Q2FY25 due to higher raw material costs and lower inventory sales. However, revenue grows by 5% YoY to Rs 526.3 crore during the quarter. It appears in a screener of stocks with declining profits for the past four quarters.

  • Parmod Sagar, CEO and Managing Director of RHI Magnesita India, expects volumes to pick up in H2FY25, with margins hovering in a 14-15% range. He also highlights that alumina pricing is rapidly increasing. Sagar adds that he has no insight into whether Dalmia plans to sell its stake in RHI.

  • Emami is falling as its revenue misses Forecaster estimates by 2.2% despite growing by 3% YoY to Rs 890.6 crore in Q2FY25. Net profit grows by 19.1% YoY to Rs 212.7 crore during the quarter, driven by inventory destocking, lower raw material, and advertisement & sales promotion expenses. It appears in a screener of stocks where RSI indicates price weakness.

  • Ircon International is falling as its net profit declines by 17.9% YoY to Rs 206 crore in Q2FY25 due to higher finance costs. Revenue decreases 19.1% YoY to Rs 2,538.6 crore, caused by a reduction in the domestic and international businesses. It appears in a screener of stocks where mutual funds decreased their shareholding in the last quarter.

  • Kilburn Engineering is rising as it secures an order worth Rs 126 crore for four rotary dryer packages from a large rock phosphate manufacturer.

  • Reliance Power drops over 5% after the government agency overseeing the National Solar Mission bars it from bidding in future tenders for three years. The restriction follows the discovery that Reliance NU BESS submitted fake bank guarantees. Solar Energy Corp. of India (SECI) reveals the bank guarantee submitted by Reliance was counterfeit, as it did not match the earnest money deposit.

  • Steel Authority of India (SAIL) falls sharply as its net profit declines 31.3% YoY to Rs 897.2 crore in Q2FY25. Revenue decreases by 16.8% YoY to Rs 24,842.2 crore due to a reduction in the Bhilai, Durgapur, Rourkela, Bokaro, IISCO, and Salem steel plants. It shows up in a screener of stocks with medium to low Trendlyne momentum scores.

  • ITI rises sharply as its consortium emerges as the lowest bidder for the Rs 3,022 crore BharatNet Phase-3 project in Himachal Pradesh, West Bengal and Andaman & Nicobar Islands.

  • Indian Hotels surges to its all-time high of Rs 724.7 crore as its net profit grows by 3.3x YoY to Rs 554.6 crore in Q2FY25, helped by a sale of its stake in Taj SATS Air Catering. Revenue rises by 27.6% YoY to Rs 1,890.2 crore, driven by improvements in the hoteliering and air & institutional catering segments. It features in a screener of stocks with consistently high returns over the past five years.

  • Motilal Oswal maintains its 'Buy' rating on Trent with a target price of Rs 8,200. The brokerage highlights industry-leading growth fueled by strong same-store sales growth (SSSG), improved store productivity, and significant expansion of its footprint. It also notes the scaling up of Zudio and new category additions as key drivers, providing substantial growth potential in the coming years.

  • Brigade Enterprises signs a joint development agreement for a residential project in Chennai. The project spans around 1 million square feet, with a gross development value of Rs 800 crore.

  • Rail Vikas Nigam falls sharply as its net profit declines by 27.2% YoY to Rs 286.9 crore in Q2FY25, caused by higher operations and finance costs. Revenue decreases 1.4% YoY to Rs 5,136.1 crore during the quarter. It appears in a screener of stocks with growing costs YoY for long-term projects.

  • NHPC is falling as its net profit declines by 41.2% YoY to Rs 909 crore in Q2FY25 due to higher employee benefits and finance costs. However, revenue increases 9.3% YoY to Rs 3,402.1 crore during the quarter. It shows up in a screener of stocks with high market cap and lower public shareholding.

  • Lupin rises sharply as its net profit surges by 74.1% YoY to Rs 852.6 crore in Q2FY25, helped by lower inventory and finance costs. Revenue grows by 12.5% YoY to Rs 5,715 crore, driven by the pharmaceuticals segment. It features in a screener of stocks with negative to positive growth in sales and profit with strong price momentum.

  • Nifty 50 was trading at 24,086.75 (-112.6, -0.5%), BSE Sensex was trading at 79,359.16 (-182.6, -0.2%) while the broader Nifty 500 was trading at 22,676.95 (-129.3, -0.6%).

  • Market breadth is highly negative. Of the 1,925 stocks traded today, 480 were gainers and 1,404 were losers.

Riding High:

Largecap and midcap gainers today include Indian Hotels Company Ltd. (732.90, 7.2%), One97 Communications Ltd. (848.55, 6.6%) and Page Industries Ltd. (48,002.90, 6.5%).

Downers:

Largecap and midcap losers today include Suzlon Energy Ltd. (62.50, -6.4%), Rail Vikas Nigam Ltd. (447.95, -6.3%) and Petronet LNG Ltd. (328.90, -5.1%).

Movers and Shakers

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

Top high volume gainers on BSE included ITI Ltd. (304.24, 14.2%), Indian Hotels Company Ltd. (732.90, 7.2%) and Motilal Oswal Financial Services Ltd. (997.65, 6.8%).

Top high volume losers on BSE were Signatureglobal (India) Ltd. (1,268.50, -8.4%), Aarti Industries Ltd. (474.40, -7.9%) and GMM Pfaudler Ltd. (1,279.50, -7.2%).

Latent View Analytics Ltd. (496.25, 6.2%) was trading at 33.3 times of weekly average. India Cements Ltd. (361.15, 0.3%) and Page Industries Ltd. (48,002.90, 6.5%) were trading with volumes 13.3 and 8.9 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

10 stocks overperformed with 52 week highs, while 4 stocks tanked below their 52 week lows.

Stocks touching their year highs included - Apollo Hospitals Enterprise Ltd. (7,421.40, -0.1%), City Union Bank Ltd. (178.82, -1.2%) and DCM Shriram Ltd. (1,242.20, -1.0%).

Stocks making new 52 weeks lows included - Prince Pipes & Fittings Ltd. (464.55, -2.5%) and Delhivery Ltd. (346.85, -2.0%).

8 stocks climbed above their 200 day SMA including ITI Ltd. (304.24, 14.2%) and Latent View Analytics Ltd. (496.25, 6.2%). 33 stocks slipped below their 200 SMA including Signatureglobal (India) Ltd. (1,268.50, -8.4%) and GMM Pfaudler Ltd. (1,279.50, -7.2%).