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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%).

 
Trendlyne Marketwatch
Trendlyne Marketwatch
07 Nov 2024
Market closes lower, Caplin Point's net profit grows 13.9% YoY to Rs 130.8 crore in Q2FY25
By Trendlyne Analysis

Nifty 50 closed at 24,199.35 (-284.7, -1.2%), BSE Sensex closed at 79,541.79 (-836.3, -1.0%) while the broader Nifty 500 closed at 22,806.25 (-225.0, -1.0%). Market breadth is in the red. Of the 2,278 stocks traded today, 889 were on the uptrend, and 1,366 went down.

Indian indices closed in the red, with the benchmark Nifty 50 index closing at 24,199.4 points. The Indian volatility index, Nifty VIX, rose by 0.5% and closed at around 14.9 points. Swiggy's Rs 11,327.4 crore IPO received bids for 0.3X the available 16 crore shares on offer on the second day of bidding. The retail investor quota got bids for 0.8X the available 2.9 crore shares.

Nifty Smallcap 100 and Nifty Midcap 100 closed in the red. Nifty Metal and Nifty Commodities closed were among the worst-performing indices of the day. According to Trendlyne’s sector dashboard, Telecommunications Equipment emerged as the best-performing sector of the day, with a rise of 3.6%.

European indices are trading in the green, except Russia’s RTSI and MOEX indices which are trading 0.7% lower each. Major Asian indices closed mixed. US index futures are trading higher, indicating a positive start to the trading session. Arista Networks, Airbnb, Duke Energy Corp, Motorola Solutions, and Transdigm Group among others, are set to report their earnings later today.

  • Hindalco Industries sees a short buildup in its November 28 futures series, with open interest increasing by 34.5% and a put-call ratio of 0.7.

  • Caplin Point Laboratories rises to its all-time high of Rs 2,176.8 per share as its net profit grows by 13.9% YoY to Rs 130.8 crore in Q2FY25. Revenue increases by 17% YoY to Rs 503.9 crore, helped by an improvement in the US, regulated, and emerging markets. It features in a screener of stocks with increasing revenue for the past eight quarters.

  • Abbott India's net profit grows 14.6% YoY to Rs 358.6 crore in Q2FY25, helped by inventory destocking and reduced finance costs. Revenue increases by 9.3% YoY to Rs 1,693.2 crore during the quarter. It appears in a screener of stocks with expensive valuations according to Trendlyne valuation score.

  • Motilal Oswal initiates coverage on small-cap rice producer LT Foods with a 'Buy' rating and a target price of Rs 520. The brokerage is bullish on the company, highlighting its strong market share, international expansion plans, and the growing demand for basmati products. With a market share of around 30% in India and 50% in the US, LT Foods has diversified into organic foods and aims for double-digit growth.

  • JK Lakshmi Cement is falling as it reports a net loss of Rs 14 crore in Q2FY25 compared to a net profit of Rs 92.7 crore in Q2FY24. Revenue declines by 21.8% YoY to Rs 1,242.7 crore due to lower sales during the quarter. It shows up in a screener of stocks with decreasing net cash flow.

  • Swiggy's Rs 11,327.4 crore IPO receives bids for 0.3X the available 16 crore shares on offer on the second day of bidding. The retail investor quota gets bids for 0.8X the available 2.9 crore shares.

  • Trent falls sharply as its net profit misses Forecaster estimates by 29.4% despite growing by 46.9% YoY to Rs 335.1 crore due to inventory destocking and lower finance costs. Revenue grows 39.4% YoY to Rs 4,156.7 crore during the quarter. It features in a screener of companies with declining net profit and profit margin (QoQ).

  • Five new stocks, including Voltas and Bombay Stock Exchange, will be added to the MSCI Global Standard Index in the November 25 reshuffle. Voltas and BSE are expected to see inflows of $312 million (approximately Rs 2,600 crore) and $259 million (around Rs 2,150 crore), respectively. Meanwhile, three stocks, including Adani Green Energy and Adani Power, will see a reduction in their index weight.

  • Avalon Technologies surges to its 52-week high of Rs 705 per share as its net profit grows by 140.1% YoY to Rs 17.5 crore in Q2FY25. Revenue rises by 35.6% YoY to Rs 278.9 crore, driven by an increase in the order book. It appears in a screener of stocks with low debt.

  • Sonata Software is falling as its revenue declines by 14% QoQ to Rs 2,189 crore in Q2FY25 due to a reduction in the Indian market. However, net profit grows by 1.1% QoQ to Rs 106.5 crore, helped by lower inventory and finance costs. It shows up in a screener of stocks with weak financials.

  • Bharat Global Enterprises hits its 5% upper circuit as it bags an infrastructure engineering order worth Rs 120 crore from Reliance Industries. The order involves the design, engineering, and construction of a full-fledged high capacity fluidised catalytic cracker (FCC) unit.

  • The Supreme Court invokes its Article 142 powers to order Jet Airways' liquidation, citing the "peculiar and alarming" five-year delay in implementing the resolution plan. It overturns NCLAT's ruling that permitted ownership transfer to the Successful Resolution Applicant (SRA) without full payment as per the plan.

  • Aurionpro Solutions bags a contract from Chennai Metro Rail Corp (CMRL) to supply its automated fare collection (AFC) systems for Phase II of the Chennai metro. As per the contract, Aurionpro will design, manufacture, supply, install, test, commission, and maintain the AFC systems for CMRL.

  • Gujarat Gas rises sharply as its net profit grows by 4.2% YoY to Rs 308.7 crore in Q2FY25, helped by lower raw material costs. However, revenue falls by 0.8% YoY to Rs 3,987.2 crore due to reduced CNG and industrial PNG sales. It appears in a screener of stocks with high volume and high gain.

  • Kansai Nerolac is falling as its net profit declines 30.7% YoY to Rs 122.8 crore in Q2FY25, due to higher raw material costs, employee benefits, and depreciation expenses. Revenue declines marginally by 0.3% YoY to Rs 1,951.4 crore during the quarter. It features in a screener of companies with prices below short, medium, and long-term averages.

  • Srinivasan Nadadhur, CFO of eClerx Services, notes the financial sector has grown faster than the company's overall average, now accounting for 40% of its revenue. He projects H1FY25 margins at 25.1%, slightly adjusted from the previous guidance range of 24-28%. Nadadhur anticipates Q3 will be affected by project roll-offs (completed projects).

  • Chambal Fertilisers & Chemicals rises sharply as its net profit grows by 40.8% YoY to Rs 536.4 crore in Q2FY25 owing to inventory destocking. However, revenue declines by 19.7% YoY to Rs 4,390.2 crore, caused by a reduction in the complex fertilisers segment. It features in a screener of stocks with YoY growth in quarterly net profits and profit margins.

  • Endurance Technologies is rising as its revenue grows by 14.8% YoY to Rs 2,939.2 crore in Q2FY25, helped by improvements in the two and three-wheeler segments. Net profit increases by 31.3% YoY to Rs 203 crore due to inventory destocking and lower inventory costs. It appears in a screener of stocks with high momentum scores.

  • Blue Star falls sharply as its net profit misses Forecaster estimates by 3.4% despite growing by 36.1% YoY to Rs 96.2 crore due to inventory destocking and lower finance costs. Revenue grows by 20.4% YoY to Rs 2,276 crore, driven by improvements in the electro and unitary products segments. It features in a screener of companies with declining revenue every quarter for the past two quarters.

  • Trump's 2024 comeback has sparked a global stock rally, but Indian stocks may face volatility from trade tensions and a stronger dollar. Nuvama Institutional Equities warns that slower exports and rising yields could delay RBI rate cuts, increasing market uncertainty amid slowing earnings and high valuations.

  • Polyab India bags two orders worth Rs 5,649.3 crore from Bharat Sanchar Nigam (BSNL) to design, build, upgrade, operate and maintain BSNL's middle mile network in Karnataka, Goa, Puducherry, and Bihar.

  • Jindal Steel & Power's Q2FY25 net profit declines 38% YoY to Rs 860.9 crore, caused by higher cost of raw materials. Revenue falls 8.4% YoY to Rs 11,248.1 crore due to lower steel sales. It shows up in a screener of stocks with the highest increase in promoter stock pledges.

  • Apollo Hospitals Enterprises surges to its all-time high of Rs 7,433.7 per share as its net profit grows 62.6% YoY to Rs 378.8 crore in Q2FY25. Revenue is up 15.6% YoY to Rs 5,627.5 crore, helped by improvements in the healthcare services, retail health & diagnostics, and digital health & pharmacy distribution segments. It features in a screener of stocks with increasing revenue for the past eight quarters.

  • Tata Steel is rising as it posts a net profit of Rs 833.5 crore in Q2FY25, compared to a net loss of Rs 6,842.1 crore in Q2FY24, driven by inventory destocking. However, revenue declines 3.2% YoY to Rs 53,904.7 crore, impacted by other Indian and South East Asian operations. It features in a screener of stocks where mutual funds increased their shareholding over the past two months.

  • Nifty 50 was trading at 24,448.95 (-35.1, -0.1%), BSE Sensex was trading at 80,276.73 (-101.4, -0.1%) while the broader Nifty 500 was trading at 23,034.05 (2.9, 0.0%)

  • Market breadth is ticking up strongly. Of the 1,933 stocks traded today, 1,301 were on the uptick, and 583 were down.

Riding High:

Largecap and midcap gainers today include Apollo Hospitals Enterprise Ltd. (7,424.85, 6.6%), FSN E-Commerce Ventures Ltd. (191.54, 5.5%) and JSW Energy Ltd. (714.80, 4.7%).

Downers:

Largecap and midcap losers today include Adani Energy Solutions Ltd. (964.05, -10.4%), Hindalco Industries Ltd. (648.10, -8.5%) and Trent Ltd. (6,505.50, -6.5%).

Movers and Shakers

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

Top high volume gainers on BSE included ITI Ltd. (266.49, 14.9%), KIOCL Ltd. (389.65, 13.6%) and DCM Shriram Ltd. (1,255, 12.3%).

Top high volume losers on BSE were Adani Energy Solutions Ltd. (964.05, -10.4%), Hindalco Industries Ltd. (648.10, -8.5%) and Trent Ltd. (6,505.50, -6.5%).

Swan Energy Ltd. (535.90, 8.1%) was trading at 31.0 times of weekly average. Apollo Hospitals Enterprise Ltd. (7,424.85, 6.6%) and KEC International Ltd. (1,050.70, 7.6%) were trading with volumes 10.2 and 9.0 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

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

Stocks touching their year highs included - Apollo Hospitals Enterprise Ltd. (7,424.85, 6.6%), Caplin Point Laboratories Ltd. (2,121.70, 1.3%) and City Union Bank Ltd. (180.92, 0.9%).

Stock making new 52 weeks lows included - Prince Pipes & Fittings Ltd. (474, -1.4%).

18 stocks climbed above their 200 day SMA including C.E. Info Systems Ltd. (2,070, 4.0%) and Narayana Hrudayalaya Ltd. (1,271.05, 1.7%). 16 stocks slipped below their 200 SMA including Adani Energy Solutions Ltd. (964.05, -10.4%) and Brigade Enterprises Ltd. (1,155.45, -4.2%).

 
Trendlyne Marketwatch
Trendlyne Marketwatch
06 Nov 2024
Market closes higher, Trident's Q2FY25 net profit declines 8.3% YoY to Rs 83.2 crore
By Trendlyne Analysis

Nifty 50 closed at 24,484.05 (270.8, 1.1%), BSE Sensex closed at 80,378.13 (901.5, 1.1%) while the broader Nifty 500 closed at 23,031.20 (351.4, 1.6%). Market breadth is ticking up strongly. Of the 2,289 stocks traded today, 1,826 were in the positive territory and 443 were negative.

Indian indices closed in the green, with the benchmark Nifty 50 index closing at 24,484.1 points, in response to the US election results. The Indian volatility index, Nifty VIX, fell around 7.8% and closed at around 14.9 points. Swiggy's Rs 11,327.4 crore IPO received bids for 0.1X the available 16 crore shares on offer on the first day of bidding. The retail investor quota got bids for 0.5X the available 2.9 crore shares.

Nifty Smallcap 100 and Nifty Midcap 100 closed higher. Nifty FMCG and Nifty Auto closed in the green. According to Trendlyne’s sector dashboard, Hardware Technology & Equipment emerged as the best-performing sector of the day, with a rise of 4.9%.

European indices are trading mixed. Major Asian indices closed mixed. US index futures are trading higher, indicating a positive start to the trading session, as Donald Trump claims victory in the presidential election. Novo Nordisk, Toyota Motor, Qualcomm, Honda Motor, and CVS Health among others, are set to report their earnings later today.

  • Relative strength index (RSI) indicates that stocks like Gillette India, Deepak Fertilisers & Petrochemicals Corp, and Syrma SGS Technology are in the overbought zone.

  • Trident's Q2FY25 net profit declines by 8.3% YoY to Rs 83.2 crore, caused by higher employee benefits and finance costs. Revenue falls 4.8% YoY to Rs 1,724.3 crore due to a reduction in the towel and paper & chemicals segments. It appears in a screener of stocks with high market cap and lower public shareholding.

  • IT stocks like Tata Consultancy Services, Infosys, HCL Technologies, Wipro, and LTIMindtree are rising in trade. All constituents of the broader Nifty IT index are also trading in the green.

  • Rites is falling as its net profit declines by 27.8% YoY to Rs 73 crore in Q2FY25, caused by increased employee benefits expenses. Revenue decreases by 7.7% YoY to Rs 562.1 crore due to a reduction in the consultancy and turnkey projects segments. It appears in a screener of stocks with declining return on capital employed (RoCE) over the past two years.

  • Sandeep Garg, MD of Welspun Enterprises, highlights the company’s target to achieve an order book of around Rs 17,000-20,000 crore by the end of FY25. He expects orders worth Rs 3,000-4,000 crore from the Department of Telecommunications. Garg also maintains the revenue guidance of Rs 4,000 crore for the year.

  • Axis Direct retains its 'Buy' call on Steel Strips Wheels with a lower target price of Rs 265 per share. This indicates a potential upside of 23.9%. The brokerage expects the company's revenue will grow due to increasing tractor volumes, alloy wheel order growth, expansion into aluminium knuckles & two-wheeler electric motor hub-wheels, and higher demand in the US and European markets. It expects the company's revenue to grow at a CAGR of 9.5% over FY25-27.

  • Swiggy's Rs 11,327.4 crore IPO receives bids for 0.1X the available 16 crore shares on offer on the first day of bidding. The retail investor quota gets bids for 0.4X the available 2.9 crore shares.

  • Granules India rises sharply as its net profit beats Forecaster estimates by 2.6% despite falling by 4.8% YoY to Rs 97.2 crore in Q2FY25 due to higher employee benefits expenses. Revenue declines by 18.6% YoY to Rs 969.9 crore, caused by a reduction in the North American, Europe, Latin America (LATAM), India, and the rest of the world (ROW) markets. It shows up in a screener of stocks with an increasing trend in non-core income.

  • RBI Governor Shaktikanta Das anticipates higher inflation in October compared to September. He hihglight that the central bank remains agile, with no immediate pressure for a rate cut. Das also notes that economic activity remains strong, with the services sector performing well.

  • Triveni Engineering & Industries is falling as it reports a net loss of Rs 19.2 crore in Q2FY25 compared to a net profit of Rs 29.1 crore in Q2FY24 due to higher raw materials, inventory, excise duty, employee benefits, and finance costs. However, revenue grows by 8.1% YoY to Rs 1,762 crore, helped by improvements in the sugar and distillery segments. It shows up in a screener of stocks with weak financials.

  • Waaree Renewable Technologies surges to its 5% upper circuit as its net profit grows by 160.2% YoY to Rs 53.5 crore in Q2FY25. Revenue rises by 249.7% YoY to Rs 527.9 crore, driven by improvements in the engineering, procurement & construction (EPC) and power segments. It appears in a screener of stocks with improving cash flow from operations over the past two years.

  • Berger Paints' Q2FY25 net profit declines by 7.5% YoY to Rs 269.7 crore, caused by higher inventory and employee benefits expenses. However, revenue increases by 0.5% YoY to Rs 2,795.7 crore during the quarter. It shows up in a screener of stocks with prices below short, medium, and long-term moving averages.

  • Anthony Cherukara, CEO of VST Tillers Tractors, expects to maintain the EBITDA margins at around 13% in H2FY25, and 11-13% in FY25, due to positive sentiment post a good monsoon. He anticipates revenue growth driven by small farm machines, tractors, and distribution segments.

  • Oil India rises sharply as its net profit surges by 4.8x YoY to Rs 2,016.2 crore in Q2FY25, helped by reduced raw materials, excise duty, inventory, employee benefits, and statutory levies expenses. However, revenue decreases by 3.4% YoY to Rs 8886.9 crore, impacted by the crude oil, natural gas, and refinery products segments. It features in a screener of stocks with the highest recovery from their 52-week lows.

  • eClerx Services surges to its all-time high of Rs 3,291 per share as its net profit grows by 25.7% QoQ to Rs 140.2 crore in Q2FY25. Revenue increases 14.8% QoQ to Rs 845 crore during the quarter. It features in a screener of stocks with prices above short, medium, and long-term moving averages.

  • Hindustan Zinc falls sharply as its promoter, the Government of India plans an offer for sale (OFS) of 5.3 crore shares (or a 1.3% stake) of the company at a floor price of Rs 505 per share. In case of an oversubscription, the promoter plans to increase the offer size to a 2.5% stake in the company.

  • India’s services PMI increases to 58.5 in October from a 10-month low of 57.7 in September, driven by growth in output and consumer demand. The PMI reading, however, stays above the 50 mark for the 39th consecutive month.

  • Indian Energy Exchange's electricity volume rises 4% YoY to 9,642 million units (MU) in October. IEX Green Market achieves a volume growth of 364% YoY to 872 MU.

  • JK Tyre & Industries is falling as its net profit declines by 44.2% YoY to Rs 135 crore in Q2FY25 due to higher raw materials and finance costs. Revenue decreases by 6.7% YoY to Rs 3.643.2 crore, caused by a reduction in the Indian and Mexican markets. It shows up in a screener of stocks where promoters decreased shareholding by more than 2% QoQ.

  • GAIL (India) rises sharply as its net profit grows by 10.2% YoY to Rs 2,689.7 crore in Q2FY25, helped by reduced inventory, employee benefits, and finance costs. Revenue increases by 3% YoY to Rs 34,258 crore, attributable to improvements in the transmission services, natural gas marketing, petrochemicals, LPG & liquid hydrocarbons, and city gas segments. It features in a screener of stocks with rising net cash flow and cash from operating activities.

  • Retail sales for the automotive industry increase 32.1% YoY to 28.3 lakh units in October, shows data from the Federation of Automotive Dealers' Association. Two-wheeler retail sales are up 36.3%% YoY, while cars grow by 32.4% YoY. FADA expects the upcoming wedding season will boost demand for 2W and cars.

  • Swiggy raises Rs 5,085 crore from anchor investors ahead of its IPO by allotting 13 crore shares at Rs 390 each. Investors include Fidelity Investments, Blackrock, HSBC, Nomura, Government Pension Fund Global, Citadel, Mirae Asset India, Nippon Mutual Fund, and Axis Mutual Fund.

  • Dr Reddy's Laboratories is rising as its revenue grows by 16.5% YoY to Rs 80,162 crore in Q2FY25, driven by improvements in the pharmaceutical services & active ingredients and global generics segments. It appears in a screener of stocks with improving book value over the past two years.

  • Mankind Pharma surges to its all-time high of Rs 2,874 crore as its net profit grows 30.4% YoY to Rs 653.5 crore in Q2FY25. Revenue increases 15.1% YoY to Rs 3,185.9 crore, driven by improvements in the domestic and international markets. It features in a screener of stocks with RSI indicating price strength.

  • Titan is falling as its net profit declines by 23.1% YoY to Rs 704 crore in Q2FY25 due to higher raw materials, inventory, employee benefits, finance, and advertisement expenses. However, revenue grows by 15.8% YoY to Rs 14,656 crore, driven by improvements in the watches & wearables, jewelry, and eyecare segments. It appears in a screener of stocks with weakening technicals and share price decline.

  • Nifty 50 was trading at 24,262.90 (49.6, 0.2%), BSE Sensex was trading at 79,736.87 (260.2, 0.3%) while the broader Nifty 500 was trading at 22,764.10 (84.3, 0.4%).

  • Market breadth is overwhelmingly positive. Of the 1,952 stocks traded today, 1,523 were gainers and 390 were losers.

Riding High:

Largecap and midcap gainers today include Dixon Technologies (India) Ltd. (15,647.60, 8.6%), Supreme Industries Ltd. (4,683.95, 7.4%) and GAIL (India) Ltd. (208.92, 6.4%).

Downers:

Largecap and midcap losers today include Hindustan Zinc Ltd. (513.10, -8.3%), ICICI Prudential Life Insurance Company Ltd. (716.25, -2.2%) and Tube Investments of India Ltd. (4,096.80, -2.1%).

Movers and Shakers

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

Top high volume gainers on BSE included Kaynes Technology India Ltd. (5,872.95, 10.6%), Dixon Technologies (India) Ltd. (15,647.60, 8.6%) and eClerx Services Ltd. (3,284.85, 8.1%).

Top high volume losers on BSE were Hindustan Zinc Ltd. (513.10, -8.3%), Timken India Ltd. (3,350, -2.2%) and Titan Company Ltd. (3,177.05, -1.7%).

CCL Products India Ltd. (719.75, 7.5%) was trading at 79.4 times of weekly average. Granules India Ltd. (579.65, 5.3%) and Medplus Health Services Ltd. (670, 2.1%) were trading with volumes 6.6 and 6.0 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

13 stocks overperformed with 52 week highs,

Stocks touching their year highs included - City Union Bank Ltd. (179.38, 0.3%), Deepak Fertilisers & Petrochemicals Corporation Ltd. (1,391.65, 5.3%) and eClerx Services Ltd. (3,284.85, 8.1%).

34 stocks climbed above their 200 day SMA including GAIL (India) Ltd. (208.92, 6.4%) and Adani Energy Solutions Ltd. (1,076.30, 6.0%). 3 stocks slipped below their 200 SMA including Indus Towers Ltd. (342.05, 0.0%) and ABB India Ltd. (7,164.05, 0.4%).

 
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The Baseline
05 Nov 2024
By Satyam Kumar

Who doesn’t enjoy surprises? The word makes us think of something pleasing and unexpected. However, when viewed through the lens of an analyst with specific forecasts about a company’s performance, surprises can be negative too, as we’ll explore in this article. 

If you check the quarterly reports of analysts, available here, it typically begins with an assessment of whether the firm exceeded or missed estimates for revenue, net profit, margins, and other key metrics in their results. These beats and misses significantly impact the company’s share price. In this week’s chart of the week, we’ll look at Trendlyne’s Analyst Estimates dashboard to review companies that either beat or missed forecasted estimates for Q2 FY25.

Banks shine in Q2, wealth management & related firms outperform

Most banks reported strong results in Q2, with firms like ICICI Bank and Axis Bank exceeding analyst expectations for revenue and net profit. Improved asset quality and sustained loan growth boosted earnings; deposits however, remain a concern, impacting profitability. Changing savings preferences have driven customers away from deposit accounts, as more and more people buy into the idea of “Mutual Funds sahi hai.” 

Public Sector Undertaking (PSU) banks like the Bank of Baroda, Punjab National Bank, and Union Bank of India outperformed estimates by significant margins. Many PSU banks currently offer strong valuations, with Trendlyne Valuation Scores above 70. This trend aligns with Nifty PSU Bank—an index of 12 government banks—trading at a discount of over 15% from its 52-week high.

On the contrary, Kotak Mahindra Bank missed its consensus estimates due to higher slippages (bad debt), particularly in the credit card and microfinance segments, impacted by macroeconomic stress and borrower overleveraging. In response to this, traders and investors led Kotak’s share price down by over 4% on the result announcement day, October 21. The RBI's ban on digital customer onboarding by Kotak due to a tech embargo has also slowed growth, especially in new credit cards. A positive development for the bank, however, was the significant growth in deposits, driven by the relaunch of ActivMoney, an alternative to fixed deposits.

All asset management companies, including HDFC AMC, Nippon Life India, UTI AMC, and Aditya Birla Sun Life AMC, surpassed estimates by wide margins, reflecting increased investor confidence in India’s long-term economic growth. Other firms, like CDSL, MCX, and KFIN Technologies, also reported strong results, benefiting from similar trends.

Consumer electronics, realty and general industrials were a mixed-bag

The past few years have been favourable for consumer electronics manufacturers in India. Demand continues to rise, driven by rapid advancements in technology, such as the shift from 3G to 4G to 5G and the emergence of generative AI. On the supply side, the government has introduced policies to incentivize local manufacturing of electronic goods, supporting industry growth. 

Rising disposable incomes have also blurred the line between essential and discretionary products. What was once considered a luxury is now viewed as a norm. Companies like Dixon Technologies and Amber Enterprises exceeded revenue and net profit estimates by significant margins. In contrast, Voltas missed estimates slightly during a seasonally weak quarter, as much of its revenue relies on air-conditioner sales.

The real estate sector experienced a mixed performance, with both upbeat and downbeat results. DLF, Godrej Properties, and Prestige Estates Projects reported positive Q2 results, while Macrotech Developers, Oberoi Realty, and Phoenix Mills posted weaker-than-expected results. Similarly, in the general industrials sector, companies like BHEL and Jindal Saw exceeded expectations, whereas Grindwell Norton, Suzlon Energy, Supreme Industries, and AIA Engineering underperformed relative to Forecaster estimates.

OMCs miss estimates on all fronts

Q2 was a real bummer for oil marketing companies (OMCs) such as Indian Oil, Bharat Petroleum, and Hindustan Petroleum. All of these firms missed net profit estimates and saw it decline for another quarter — a negative trend that started in Q2 last year. However, just before this downhill journey, these OMCs had reported all-time high net profits because of cheap Russian crude that India imported last year. Even today, India imports most of its crude oil from Russia (above 40%), but it is not as cheap, creating pressure on their profit margins.

Meanwhile, in the pharma industry, it feels like the firms were struggling to manage both sides of the scale — one side representing revenue and the other side representing net profit. Pharma bellwethers like Sun Pharmaceutical and Cipla barely managed to meet their revenue consensus, while delivering on higher than expected net income. On the contrary, firms like Torrent Pharmaceuticals, Ajanta Pharma, and Piramal Pharma missed Forecaster's net profit estimates, primarily due to their growth-seeking approach.

 
Trendlyne Marketwatch
Trendlyne Marketwatch
05 Nov 2024
Market closes higher, SJVN's Q2FY25 revenue grows by 16.5% YoY to Rs 1,108.4 crore
By Trendlyne Analysis

Nifty 50 closed at 24,213.30 (218.0, 0.9%), BSE Sensex closed at 79,476.63 (694.4, 0.9%) while the broader Nifty 500 closed at 22,679.85 (161.6, 0.7%). Market breadth is in the green. Of the 2,287 stocks traded today, 1,446 were on the uptrend, and 805 went down.

Nifty 50 closed in the green after paring its losses in the afternoon session. The Indian volatility index, Nifty VIX, fell by 3.4% and closed at 16.1 points. Sagility India raised Rs 945.4 crore from anchor investors ahead of its IPO by allotting around 31.5 crore shares at Rs 30 each. 

Nifty Smallcap 100 and Nifty Midcap 100 closed higher. Nifty Metal and Nifty Financial Services were among the top-performing indices of the day. According to Trendlyne’s sector dashboard, Hardware Technology & Equipment emerged as the best-performing sector of the day, with a rise of 3.1%.

European indices are trading higher. Major Asian indices closed in the green, except Australia’s S&P ASX 200 and South Korea’s KOSPI, which closed 0.4% and 0.5% lower, respectively. US index futures are trading in the green, indicating a positive start to the trading session. Apollo Global Management, Thomson Reuters Corp, Emerson Electric, and Marathon Petroleum Corp among others, are set to report their earnings later today.

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

  • SJVN is rising as its Q2FY25 revenue grows by 16.5% YoY to Rs 1,108.4 crore, driven by higher generation from the hydro and wind power plants. Net profit rises marginally by 0.3% YoY to Rs 441.1 crore during the quarter. It appears in a screener of stocks with improving book value over the last two years.

  • Rail Vikas Nigam rises as it bags an order worth Rs 837.7 crore from the Eastern Railways to construct bridges, retaining walls, level crossing, and side drains, among others, between Kalipahari and Pradhankhuta.

  • Alkyl Amines Chemicals rises sharply as its net profit grows by 74.2% YoY to Rs 47.5 crore in Q2FY25. Revenue increases 19.6% YoY to Rs 424.1 crore during the quarter. It features in a screener of stocks with increasing profits over the past three quarters.

  • Deepak Goyal, Director & Group CFO of APL Apollo Tubes, highlights the company’s volume guidance of 3.2-3.3 MT for FY25. He projects EBITDA/tonne at Rs 4,000-5,000/tn for H2FY25. Goyal expects the company will be debt-free in the coming 1-2 quarters.

  • ICICI Direct maintains its 'Buy' call on Shalby with a lower target price of Rs 310 per share. This indicates a potential upside of 33%. The brokerage believes the company's plans to expand into metros and tier-1 cities and an asset-light franchisee-based expansion in tier II-VI towns will help improve revenue. It expects the firm's revenue to grow at a CAGR of 15.5% over FY25-26.

  • VST Industries is falling as its Chief Executive Officer (CEO) & Managing Director Arun Maheshwari tenders his resignation, effective November 5. The company appoints Naresh Kumar Sethi as his successor for a period of five years.

  • Saregama India falls sharply as its net profit declines by 6.7% YoY to Rs 44.9 crore in Q2FY25 due to higher operational, employee benefits, advertisement & sales promotion, and royalty expenses. However, revenue grows by 37.1% YoY to Rs 254.4 crore, attributed to improvements in the music, artist management, and video segments. It shows up in a screener of stocks with declining cash from operations over the past two years.

  • Ashish Kacholia’s portfolio stock, E2E Networks, hits its 5% upper circuit as Larsen & Toubro enters an agreement to acquire up to 21% stake worth Rs 1,079 crore in the company. L&T will initially buy up to 15% stake through preferential allotment.

  • KEC International is falling as its net profit misses Forecaster estimates by 23.1% despite growing by 53% YoY to Rs 85.4 crore in Q2FY25, helped by reduced erection & subcontracting and finance costs. Revenue increases 13.4% YoY to Rs 5,119.9 crore, driven by the engineering, procurement & construction (EPC) segment. It appears in a screener of stocks with an increasing trend in non-core income.

  • Tilaknagar Industries surges to its all-time high of Rs 345 per share as its net profit grows by 57.2% YoY to Rs 58.2 crore in Q2FY25 owing to inventory destocking and lower finance costs. Revenue rises by 10.1% YoY to Rs 826.7 crore during the quarter. It appears in a screener of stocks with PEG lower than industry PEG.

  • JK Paper is falling as its net profit plunges by 57.5% YoY to Rs 128.5 crore in Q2FY25, caused by increased raw materials, employee benefits, and finance costs. However, revenue grows marginally by 0.3% YoY to Rs 1,714.9 crore, helped by an improvement in the paper & packaging segment. It shows up in a screener of stocks with RSI indicating price weakness.

  • Embassy Office Parks REIT announces the resignation of its CEO, Aravind Maiya, effective immediately, following a directive by SEBI. This comes after concerns about Maiya’s professional background amid an investigation by the National Financial Reporting Authority.

  • Bata India's Q2FY25 net profit grows by 52.9% YoY to Rs 52 crore, helped by reduced inventory expenses. Revenue rises by 2.4% YoY to Rs 854.3 crore, driven by exclusive brand store additions for Power and Hush Puppies. It appears in a screener of stocks with increasing profits for the past three quarters.

  • KP Energy surges to its 5-year high of Rs 636.4 per share as it bags multiple orders from KPI Green Energy to set up renewable energy projects with a total capacity of 1,003.7 MW. The orders include two solar-wind hybrid projects and a solar project to be carried out on an engineering, procurement, construction, and commissioning (EPCC) basis.

  • Metal stocks like JSW Steel, Tata Steel, Hindustan Zinc, Hindalco Industries, Vedanta, and Jindal Steel & Power are rising in trade. The broader Nifty Metal index is also trading in the green.

  • Bernstein expects a further decline in the Indian stock market, highlighting that the current market prices have not fully factored in the potential economic slowdown. This comes after almost half of the NSE100 companies that released their Q2 earnings missed estimates by more than 4%. It forecasts the Nifty 50 will drop to 23,500 by year-end due to muted growth and weak demand.

  • Procter & Gamble Health surges to its 52-week high of Rs 5742.4 per share as its net profit grows by 25.6% YoY to Rs 82.3 crore in Q2FY25, helped by lower raw materials and employee benefits expense. Revenue increases 1.8% YoY to Rs 316.7 crore during the quarter. It features in a screener of stocks with dividend yield greater than the sector dividend yield.

  • Amara Raja Energy & Mobility is falling sharply as its net profit misses Forecaster estimates by 10.1% after falling by 1.2% YoY to Rs 235.6 crore in Q2FY25 due to higher raw materials, inventory, and employee benefits expenses. However, revenue grows by 9.6% YoY to Rs 3,276.2 crore, driven by the lead acid batteries & allied products segment. It shows up in a screener of high volume and top losing stocks.

  • Raymond is rising as its Q2FY25 revenue surges by 114.8% YoY to Rs 1,100.7 crore, helped by improvements in the tools & hardware, auto components, and real estate segments. However, net profit plunges 62.4% YoY to Rs 60 crore due to increased property development, raw materials, employee benefits, finance, and manufacturing & operating expenses. It features in a screener of stocks outperforming their industries in the past month.

  • Morgan Stanley maintains its ‘Overweight’ rating on Apollo Hospitals Enterprise with a target price of Rs 7,110. The brokerage notes the company’s plans to set up a 500-bed hospital in Worli, Mumbai. It expects the share of metro cities in the overall mix will increase to 60% by FY29 from 57% in FY24, likely supporting RoCE expansion.

  • Indian Railway Catering & Tourism Corp's net profit grows by 4.5% YoY to Rs 307.9 crore in Q2FY25, helped by reduced raw materials, tourism, and finance costs. Revenue increases 8.1% YoY to Rs 1,124 crore, attributed to improvements in the catering, Rail Neer, and internet ticketing segments. It appears in a screener of stocks with improving cash flow from operations over the past two years.

  • Sagility India raises Rs 945.4 crore from anchor investors ahead of its IPO by allotting around 31.5 crore shares at Rs 30 each. Investors include Government Pension Fund Global, Nomura, Whiteoak Capital, Edelweiss, Florida Retirement, and Mirae Asset India.

  • Gland Pharma rises sharply as its revenue grows 2.7% YoY to Rs 1,465.5 crore in Q2FY25, attributed to improvements in the USA, Canada, Australia, and New Zealand markets. However, net profit declines by 15.7% YoY to Rs 163.5 crore due to higher inventory and employee benefits expenses. It features in a screener of stocks with low debt.

  • ABB India is falling as its net profit misses Forecaster estimates by 7.8% despite growing by 21.4% YoY to Rs 440.5 crore in Q2FY25 owing to lower raw materials and inventory costs. Revenue rises by 5.6% YoY to Rs 3,005.1 crore, driven by improvements in the motion and electrification segments. It appears in a screener of stocks where mutual funds decreased their holding in the past quarter.

  • Nifty 50 was trading at 24,023.85 (28.5, 0.1%), BSE Sensex was trading at 78,542.16 (-240.1, -0.3%) while the broader Nifty 500 was trading at 22,553.05 (34.8, 0.2%).

  • Market breadth is surging up. Of the 1,938 stocks traded today, 1,356 were gainers and 546 were losers.

Riding High:

Largecap and midcap gainers today include Gland Pharma Ltd. (1,832.85, 13.8%), Adani Energy Solutions Ltd. (1,015, 5.2%) and Oil India Ltd. (495.60, 4.9%).

Downers:

Largecap and midcap losers today include PB Fintech Ltd. (1,627, -5.1%), Torrent Power Ltd. (1,709.90, -4.9%) and Tube Investments of India Ltd. (4,183.30, -3.8%).

Crowd Puller Stocks

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

Top high volume gainers on BSE included Gland Pharma Ltd. (1,832.85, 13.8%), Mangalore Refinery And Petrochemicals Ltd. (163.84, 11.0%) and Hatsun Agro Products Ltd. (1,146.70, 7.4%).

Top high volume losers on BSE were PB Fintech Ltd. (1,627, -5.1%), Torrent Power Ltd. (1,709.90, -4.9%) and Amara Raja Energy & Mobility Ltd. (1,319.55, -4.0%).

Chemplast Sanmar Ltd. (484.70, 2%) was trading at 21.6 times of weekly average. Procter & Gamble Health Ltd. (5,597, 5.9%) and R R Kabel Ltd. (1,515.55, -0.2%) were trading with volumes 20.1 and 11.4 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 1 stock hit their 52 week lows.

Stocks touching their year highs included - Deepak Fertilisers & Petrochemicals Corporation Ltd. (1,321.45, 3.4%), Gillette India Ltd. (10,590, 1.9%) and National Aluminium Company Ltd. (235.03, 1.8%).

Stock making new 52 weeks lows included - Delhivery Ltd. (353.90, 0.1%).

17 stocks climbed above their 200 day SMA including Hatsun Agro Products Ltd. (1,146.70, 7.4%) and Oil India Ltd. (495.60, 4.9%). 21 stocks slipped below their 200 SMA including ABB India Ltd. (7,132.85, -3.1%) and KEI Industries Ltd. (3,939.80, -2.9%).

 
Trendlyne Marketwatch
Trendlyne Marketwatch
04 Nov 2024
Market closes lower, VST Tillers Tractors' net profit up 22.9% YoY to Rs 44.8 crore in Q2FY25
By Trendlyne Analysis

Nifty 50 closed at 23,995.35 (-309, -1.3%), BSE Sensex closed at 78,782.24 (-941.9, -1.2%) while the broader Nifty 500 closed at 22,518.30 (-305.3, -1.3%). Market breadth is moving down. Of the 2,368 stocks traded today, 557 were in the positive territory and 1,788 were negative.

Indian indices closed in the red ahead of US election results, with the benchmark Nifty 50 index closing at 23,995.4 points. The Indian volatility index, Nifty VIX, rose around 5% and closed at 16.7 points. Afcons Infrastructure’s shares made their debut on the bourses at an 8% discount to the issue price of Rs 463. The Rs 5,430 crore IPO received bids for 2.6 times the total shares on offer. 

Nifty Midcap 100 and Nifty Smallcap 100 closed lower. Nifty Media and Nifty Auto closed in the red. According to Trendlyne’s sector dashboard, Hardware Technology & Equipment emerged as the best-performing sector of the day, with a rise of 1.7%.

European indices are trading mixed. Major Asian indices closed mixed. US index futures are trading mixed, indicating a cautious start to the trading session. Vertex Pharmaceuticals, Palantir Technologies, Constellation Energy, and Marriott International among others, are set to report their earnings later today.

  • Relative strength index (RSI) indicates that stocks like Poly Medicure, Crisil, and Piramal Pharma are in the overbought zone.

  • VST Tillers Tractors' net profit grows by 22.9% YoY to Rs 44.8 crore in Q2FY25, helped by lower inventory expenses. Revenue increases 6.1% YoY to Rs 310.2 crore, driven by an increase in sales of power tillers, power weeders, and reapers. It features in a screener of stocks with rising net cash flow and cash from operating activities.

  • Solar Industries India bags an order worth Rs 399.4 crore from an international client to supply defence products over the next three years.

  • Tube Investments of India declines as its Q2FY25 net profit falls by 22.3% YoY to Rs 206.8 crore, caused by increased raw materials, inventory, and employee benefits expenses. However, revenue grows by 14.4% YoY to Rs 4,995.2 crore owing to improvements in the engineering, metal-formed products, electric vehicles, gears & gear products, power systems, and industrial systems segments.

  • Niva Bupa Health Insurance Company sets its IPO price band at Rs 70-74 per share. The issue size is Rs 2,200 crore, with a fresh issue worth Rs 800 crore and an offer for sale of around Rs 1,400 crore. The issue opens on November 6.

  • Exide Industries falls sharply as its net profit declines 14.1% YoY to Rs 231.3 crore in Q2FY25 due to higher raw materials, employee benefits, and finance costs. However, revenue increases 1.8% YoY to Rs 4,490.3 crore, driven by improvements in the two-wheeler & four-wheeler replacement and industrial uninterruptible power supply (UPS) & solar segments. It appears in a screener of stocks with increasing trend in non-core income.

  • IDBI Capital upgrades Ami Organics to 'Buy' from 'Hold' with a higher target price of Rs 2,250 per share. This indicates a potential upside of 13.8%. The brokerage expects sustained growth in key molecules, combined with the scale-up of the contract development and manufacturing organization (CDMO) segment, will help improve revenue. It expects the firm's revenue to grow at a CAGR of 31.7% over FY25-27.

  • Bharat Global Developers surges to its 5% upper circuit as it bags an order worth Rs 300 crore from McCain India Agro to supply 2 lakh tonnes of potatoes in the next six months.

  • Umesh Chowdhary, CEO of Titagarh Rail Systems, says the company delivered 900 wagons per month in Q2FY25, and projects it to be over 1,000 wagons/month for FY25. He highlights that the order book stands at Rs 25,000 crore, with 50% coming through JVs. Chowdhary maintains the EBITDA margin guidance at 12% and expects a 300-400 bps jump in the passenger EBITDA.

  • Hatsun Agro Products is falling as its net profit declines by 17.1% YoY to Rs 64.3 crore in Q2FY25, caused by higher employee benefits and finance costs. However, revenue grows by 8.3% YoY to Rs 2,078.7 crore during the quarter. It shows up in a screener of stocks with weak financials.

  • DCM Shriram's Q2FY25 net profit surges 95.2% YoY to Rs 62.9 crore, helped by lower inventory and fuel & power expenses. Revenue increases 11.8% YoY to Rs 3,184 crore driven by improvements in the chloro-vinyl, sugar, Shriram farm solutions, bioseed, and fertilizer segments. It features in a screener of stocks with dividend yield greater than the sector dividend yield.

  • Hero MotoCorp's monthly wholesales rise 18.1% YoY to 6.8 lakh units in October due to higher motorcycle sales and domestic business. Its exports grow by 43% YoY to 21,688 units during the month.

  • Partho Banerjee, Senior Executive Officer, Marketing and Sales at Maruti Suzuki, expects strong sales in November due to “a few lakh” weddings, carrying forward the festive momentum. The company posted retail sales of 2 lakh units in October, driven by festive sales.

  • Bajaj Auto is falling as its domestic wholesales decline by 8% YoY to 3 lakh units in October due to a decrease in two-wheeler and commercial vehicle domestic wholesales by 8% YoY and 6% YoY, respectively. However, the company's exports grow by 24% YoY to 1.8 lakh units during the month.

  • Energy stocks like Indian Oil Corp, Tata Power, Bharat Petroleum Corp, and Coal India fall more than 3% in trade. All constituents of the broader Nifty Energy index are also trading in the red, causing the index to plunge more than 3%.

  • IRB Infrastructure Developers falls sharply as its net profit misses Forecaster estimates by 1.8% despite growing 4.3% YoY to Rs 99.9 crore in Q2FY25. Revenue declines by 6.6% YoY to Rs 1,751.6 crore due to a reduction in the construction segment. It appears in a screener of stocks with high promoter pledges.

  • India’s manufacturing PMI rises to 57.5 in October, compared to the nine-month low of 56.5 in September, driven by robust demand for Indian goods.

  • Biocon falls sharply as it reports a net loss of Rs 16 crore in Q2FY25 compared to a net profit of Rs 125.6 crore in Q2FY24 due to higher inventory, employee benefits, and deferred tax expenses. Revenue remains flat at Rs 3,622.9 crore as gains in the biosimilars segment were offset by declines in the generics and research services segments. It shows up in a screener of stocks with RSI indicating price weakness.

  • Larsen & Toubro's Q2FY25 net profit grows 13% YoY to Rs 703.6 crore. Revenue increases 20.1% YoY to Rs 62,655.9 crore owing to improvements in the infrastructure projects, energy projects, hi-tech manufacturing, IT & technology services, and financial services segments. It features in a screener of stocks with high momentum scores.

  • Tata Power is falling as its net profit misses Forecaster estimates by 12.3% despite growing by 5.8% YoY to Rs 926.5 crore in Q2FY25 owing to lower fuel and raw material costs. Revenue rises by 11.9% YoY to Rs 16,219.8 crore, attributable to the transmission & distribution segments. It appears in a screener of stocks with increasing debt.

  • DAM Capital initiates a ‘Buy’ rating on Bharti Airtel with a target price of Rs 1,907. The brokerage expects strong multi-year growth in the home broadband segment and steady expansion in the B2B business. It projects the company’s wireless subscribers to grow by more than 2% annually, with average revenue per user rising 7% every year for the next decade.

  • Afcons Infrastructure’s shares debut on the bourses at an 8% discount to the issue price of Rs 463. The Rs 5,430 crore IPO received bids for 2.6 times the total shares on offer.

  • Bondada Engineering rises as its Q2FY25 net profit surges by 142.2 % YoY to Rs 36 crore, helped by lower raw material expenses. Revenue jumps by 62.7% YoY to Rs 483.4 crore, driven by the engineering, procurement & construction (EPC) segment. It features in a screener of stocks with improving return on equity (RoE) over the past two years.

  • Narayana Hrudayalaya is falling as its net profit declines by 12.3% YoY to Rs 198.6 crore in Q2FY25 due to higher raw materials and employee benefits expenses. However, revenue grows by 7.6% YoY to Rs 1,423.6 crore, helped by the medical & healthcare-related services segment. It shows up in a screener of stocks with growing costs YoY from long-term projects.

  • Welspun Corp is rising as it bags two orders worth approx. Rs 1,300 crore from the US to supply coated helical submerged arc welding (HSAW) pipes for natural gas pipelines.

  • Nifty 50 was trading at 24,128.25 (-176.1, -0.7%), BSE Sensex was trading at 79,573.72 (-150.4, -0.2%) while the broader Nifty 500 was trading at 22,636.30 (-187.3, -0.8%).

  • Market breadth is overwhelmingly negative. Of the 2,050 stocks traded today, 526 were in the positive territory and 1,468 were negative.

Riding High:

Largecap and midcap gainers today include Info Edge (India) Ltd. (7,722.75, 3.4%), Max Healthcare Institute Ltd. (1,036.60, 2.9%) and Punjab National Bank (103.65, 2.6%).

Downers:

Largecap and midcap losers today include Rail Vikas Nigam Ltd. (446.20, -5.3%), Solar Industries India Ltd. (9,887.65, -4.9%) and Star Health and Allied Insurance Company Ltd. (488.80, -4.5%).

Volume Rockets

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

Top high volume gainers on BSE included Fine Organic Industries Ltd. (5,133.10, 5.8%), Rainbow Childrens Medicare Ltd. (1,630.35, 5.2%) and Galaxy Surfactants Ltd. (3,050, 4.0%).

Top high volume losers on BSE were Sun Pharma Advanced Research Company Ltd. (205.13, -5.0%), PVR INOX Ltd. (1,498, -4.9%) and KIOCL Ltd. (321.50, -4.1%).

Shoppers Stop Ltd. (658.50, -3.5%) was trading at 17.9 times of weekly average. Hatsun Agro Products Ltd. (1,068, -3.8%) and Welspun Corp Ltd. (731.70, -0.2%) were trading with volumes 7.3 and 6.7 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

9 stocks hit their 52 week highs, while 2 stocks hit their 52 week lows.

Stocks touching their year highs included - City Union Bank Ltd. (178.45, 0.4%), Crisil Ltd. (5,479.90, 0.3%) and Federal Bank Ltd. (204.29, 0.1%).

Stocks making new 52 weeks lows included - Astral Ltd. (1,750.80, -1.5%) and Birlasoft Ltd. (549.80, -1.3%).

3 stocks climbed above their 200 day SMA including Macrotech Developers Ltd. (1,194.95, -1.0%) and Hatsun Agro Products Ltd. (1,068, -3.8%). 29 stocks slipped below their 200 SMA including Craftsman Automation Ltd. (4,997.60, -4.0%) and Star Cement Ltd. (203.56, -3.9%).

 
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The Baseline
31 Oct 2024
Some sectors show positive signs in a downbeat quarter | Screener: Stocks beating their estimates

The CEOs are less bombastic, the analysts are concerned, and the investors are brooding over the red in their portfolios.

Much of the talk in these past few weeks has been around India Inc's disappointing Q2 results. Revenue growth across sectors and industries looks in the range of 5-7% YoY, the slowest in four years. Large bellweather companies like Reliance Industries have reported disappointing numbers, missing estimates.

Among the underperfomers is the cement and construction sector, whose results so far have shown negative average revenue growth and falling margins. One factor here is the strong monsoon, which while great for agriculture, has delayed construction activity across the country.

But a bigger factor, as the Nuvoco Vistas management pointed out, is falling government spending. "Union government capex has dropped 19% YoY, and state governments’ capex declined by 6% YoY in the first five months of FY25, after a 40% surge in the previous year," they noted. "Some states have seen 35%+ drops in state capex spending." 

Construction and cement account for one-fifth of corporate earnings, so weakness here has dragged down overall performance. Sectors such as industrial machinery and plastics are also struggling, and consumer demand remains weak across sectors like FMCG, auto, and retail.

Still, there are some bright spots emerging in the results. In our hunt for silver linings, we take a closer look at these. 

In this week's Analyticks:

It's results season!: In a downbeat quarter, who are the outperformers?

Screener: Rising stocks outperforming Forecaster estimates in revenue and EPS in Q2FY25

Banking and tech are the front-benchers this quarter

As Q2 results have rolled in, one emerging bright spot has been banks. Stronger deposit growth has helped drive net profits up. Net interest income is higher, although it is growing slower than it did over the past two years. Still, steady performances from major banks like ICICI Bank has helped boost sentiment for this part of India Inc. 

Another sector that is emerging from the doldrums, is IT and software. According to tech CEOs, discretionary spending is coming back globally, with Mastek CEO Umang Nahata noting that "sentiment in the market is positive compared to what it was earlier." Infosys has increased its guidance for the second consecutive quarter amid this shift.

A relatively surprising entry here is textiles. The textile sector has struggled for the past several quarters with rising competition from players in Vietnam and Bangladesh, as well as weak demand for intermediary products. This quarter however, there are hints of green shoots, with rising revenues overall. Welspun Group Chairman Balakrishan Goenka has pointed to the growth of the advanced textiles segment and global brands as drivers for Indian players. "Domestic demand," he notes, "has also ramped up." 

Average revenues jump, but companies struggle with margins and profitability

Even in these better performing sectors, there are some concerning trends. Textiles is still struggling with margin growth, despite double digit revenue expansion. Banks while growing, are seeing a more muted result than previous quarters. 

When domestic growth slows, investors and analysts alike look to export-oriented sectors like software and textiles. While the jury is still out on the outlook for the textile sector, IT companies, particularly IT services, are coming out of the doldrums, thanks to drivers like interest rate cuts in the US and EU. Salil Parekh, the Infosys CEO noted, "Typically we have seen that when interest rate cuts begin and inflation is more in control in Western Europe and the US, spending on large technology programs increases". 

But what is driving overall Q2 weakness? Management across sectors point to the slowing Indian economy. There are some clear warning signs: slower credit growth and higher food inflation. FMCG growth,which used to be in the double digits a couple of quarters ago, is now down to 1.5% to 2%.  All of this points to Indians growing more protective of their wallets. 

So even as consumer spending recovers globally,  we need to keep an eye on Indian demand, particularly in urban areas. "The pressure points are coming from mega cities and metros," Nestle India Chairman Suresh Narayanan says. This lack of consumer confidence is set to suppress the performance for much of India Inc. 

Screener: Rising stocks outperforming Forecaster estimates in revenue and EPS in Q2FY25

Banking & finance stocks have the highest positive surprise in Q2FY25

With the result season in full flow, we take a look at companies that have outperformed Trendlyne’s Forecaster estimates. This screener shows stocks rising over the past month while outperforming Forecaster estimates in revenue and earnings per share (EPS) in Q2FY25.

The screener is dominated by stocks from the banking & finance, software & services, and consumer durables sectors. Most notable stocks that feature in the screener are Amber Enterprises, Dixon Technologies, Nippon Life India Asset Management, Aditya Birla Sun Life AMC, Indian Bank, Federal Bank, Great Easter Shipping, Multi Commodity Exchange of India, and City Union Bank.

Amber Enterprises’ revenue and EPS beat Trendlyne’s Forecaster estimates by 44.8% and 1,283.3% in Q2FY25. Revenue beat estimates, helped by the consumer electronics company’s revenue growing by 81.2% YoY on the back of an improvement in the consumer durables (which contributes to 64% of total revenue) and electronic manufacturing services (EMS) (contributes 29%). The company’s EPS outperformance was driven by a net profit of Rs 19.2 crore in Q2FY24 compared to a Rs 6.9 crore loss in Q2FY24.

Nippon Life India Asset Management also shows up in the screener after beating Forecaster estimates for revenue and EPS by 21.2% and 14.3%, respectively in Q2FY25. This asset management company’s revenue beat estimates owing to higher assets under management and improved inflows in the SIP and equity funds segments. EPS beat Forecaster estimates after growing by 47.3% YoY to Rs 360.1 crore during the quarter.

You can find some popular screeners here.

 
Trendlyne Marketwatch
Trendlyne Marketwatch
30 Oct 2024
Market closes lower, Kaynes Tech's net profit grows 87.5% YoY to Rs 60.2 crore in Q2FY25
By Trendlyne Analysis

Nifty 50 closed at 24,340.85 (-126, -0.5%), BSE Sensex closed at 79,942.18 (-426.9, -0.5%) while the broader Nifty 500 closed at 22,749.80 (-45.3, -0.2%). Market breadth is ticking up strongly. Of the 2,308 stocks traded today, 1,801 showed gains, and 483 showed losses.

Indian indices closed in the red, with the benchmark Nifty 50 index closing at 24,340.9 points. The Indian volatility index, Nifty VIX, rose 6.9% and closed at 15.5 points. Larsen & Toubro’s transmission and distribution (T&D) business won orders worth Rs 5,000-10,000 crore to expand and strengthen electricity grids in the Middle East and Africa. 

Nifty Smallcap 100 and Nifty Midcap 100 closed in the green. S&P BSE SME IPO and Nifty Media were among the top index gainers today. According to Trendlyne’s Sector dashboard, Healthcare Equipment & Supplies emerged as the best-performing sector of the day, with a rise of 5.5%.

Asian indices closed mixed 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 green. Alphabet's Q3 results exceeded Wall Street expectations, primarily driven by robust demand for computing and data services necessary for supporting artificial intelligence models, which are enhancing returns for its cloud computing division.

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

  • Shalby’s net profit declines 43% YoY to Rs 173.4 crore in Q2FY25 attributed to higher employee benefit, depreciation & amortisation expenses and finance costs. Revenue drops 2.2% YoY to Rs 2,122.7 crore during the quarter. The company features in a screener of stocks with declining profits every quarter for the past three quarters.

  • Kaynes Technology's net profit grows by 87.5% YoY to Rs 60.2 crore in Q2FY25 but misses Forecaster estimates by 1.1%. Revenue grows by 63.8% YoY to Rs 605.7 crore during the quarter. It features in a screener of stocks with increasing net profit and profit margin (YoY).

  • Aadhar Housing Finance, Usha Martin, and Apollo Hospitals Enterprise rise by 9%, 5.9%, and 1.3% respectively, ahead of their Q2FY25 results on November 6.

  • According to a report from the World Gold Council, India purchased gold worth Rs 1.7 lakh crore in Q2FY25, despite a 28% increase in global prices. Gold demand rose 18% YoY to 248.3 tonnes in Q2, driven by higher jewellery consumption and increased investment in gold.

  • AIA Engineering's Q2FY25 net profit declines by 21% YoY to Rs 256.7 crore due to higher inventory and employee benefits expenses. Revenue falls 19.4% YoY to Rs 1,044.2 crore during the quarter. It appears in a screener of stocks with declining profits over the past three quarters.

  • Procter & Gamble Hygiene & Healthcare’s Q2FY25 net profit grows marginally by 0.6% YoY to Rs 211.9 crore, missing the Forecaster estimates by 9.4%. Revenue remains flat at Rs 1,132.7 crore. The company shows up in a screener of stocks with declining revenue every quarter for the past three quarters.

  • Sterlite Technologies posts a net loss of Rs 14 crore in Q2FY25 compared to a net profit of Rs 34 crore in Q2FY24 due to higher raw materials costs. Revenue declines by 5.2% YoY to Rs 1,419 crore, caused by a reduction in the optical networking, global services, and digital & technology solutions segments. It appears in a screener with low DVM stocks.

  • Satyanarayana Raju, CEO of Canara Bank, highlights the bank is on track to meet its net interest margin (NIM) guidance for FY25, despite an overall increase in deposit costs within the banking sector. For Q2FY25, the bank's NIM stood at 2.88%, a decline of 2 bps from the previous quarter. At the beginning of the financial year, the bank had aimed for a NIM in the range of 2.9%.

  • Larsen & Toubro’s transmission and distribution (T&D) business bags orders worth Rs 5,000-10,000 crore to expand and strengthen electricity grids at high-voltage levels in the Middle East and Africa. The company will also implement an energy management system for a country-wide electricity network.

  • Geojit BNP Paribas upgrades Bajaj Finance to 'Buy' from 'Hold' with a higher target price of Rs 7,924 per share. This indicates a potential upside of 13.6%. The brokerage believes the lender will benefit from the falling credit costs and potential margin expansion from rate cuts, which could support lower-margin products and new businesses. It expects the company's net interest income (NII) to grow at a CAGR of 20.4% over FY25-26.

  • Redington surges as its net profit beats Forecaster estimates by 12.3% despite falling by 3.5% YoY to Rs 292.9 crore in Q2FY25. However, revenue grows by 11.9% YoY to Rs 24,952.2 crore, helped by improvements in the Singapore, India & South Asia (SISA) and rest of the world (ROW) segments. It features in a screener of stocks with the highest FII holdings.

  • Five-Star Business Finance falls over 11%, but Nuvama Research retains its 'Buy' rating on the stock, with a target price of Rs 1,010. Despite a reduction in growth guidance and lower incremental yield, the brokerage believes the company will outperform its peers in terms of growth and profitability. It highlights that Five-Star's earnings indicate the strength of its business model amid significant stress among many small lenders.

  • GlaxoSmithKline Pharmaceuticals is rising as its net profit grows by 16.1% YoY to Rs 252.2 crore in Q2FY25, helped by lower finance costs and depreciation expenses. Revenue increases 5.6% YoY to Rs 1,010.8 crore during the quarter. It features in a screener of companies where mutual funds increased their shareholding in the last quarter.

  • Media stocks like Sun TV Network, PVR INOX, Network18 Media & Investment, and Zee Entertainment Enterprises are rising in trade. All constituents of the broader Nifty Media index are also trading in the green.

  • Honeywell Automation falls sharply as its net profit declines 5.6% YoY to Rs 115.1 crore in Q2FY25 due to higher cost of raw materials. Revenue decreases by 6.9% YoY to Rs 1,065.1 crore during the quarter. It shows up in a screener of high volume and top losing stocks.

  • Sanjay Swarup, CMD of Container Corp of India, projects volume growth of more than 18% and margins at around 25-26% for FY25. He anticipates improved realizations in the second half of the fiscal year and maintains the FY25 export-import (EXIM) volume guidance of 15-25% for the company's domestic business.

  • Voltas is falling as its net profit misses Forecaster estimates by 1.8% despite growing by 265.3% YoY to Rs 134 crore in Q2FY25, helped by inventory destocking. Revenue rises by 15.3% YoY to Rs 2,724.6 crore, driven by improvements in the unitary cooling products and engineering products & services segments. It appears in a screener of stocks with an increasing trend in non-core income.

  • Godrej Agrovet is falling as its Q2FY25 net profit misses Forecaster estimates by 7.3% despite growing by 6.6% YoY to Rs 112.3 crore. Revenue declines 4.7% YoY to Rs 2,461.3 crore due to a reduction in the animal feed, vegetable oil, crop protection, and poultry & processed food segments. It appears in a screener of stocks where RSI indicates price weakness.

  • Godavari Biorefineries’ shares debut on the bourses at a 12.5% discount to the issue price of Rs 352. The Rs 554.8 crore IPO received bids for 1.8 times the total shares on offer.

  • Economists believe the Reserve Bank of India (RBI) will likely cut its key policy rate by a quarter point to 6.25% in December to support slowing economic growth. Despite a surprising rise in inflation to 5.5% in September, it is projected to average 4.9% this quarter and drop to 4.6% in January-March, giving RBI the room to ease policy. The central bank has maintained interest rates at their highest level since early 2019 over the past ten meetings.

  • Shriram Properties is rising as it signs a joint development agreement for a six-acre land in Undri, Pune. The company will develop over 650 apartments and some retail or commercial spaces with an aggregate saleable area of more than 1 million square feet. The project has a revenue potential of approx. Rs 700-750 crore, to be developed over four years.

  • Force Motors surges more than 15% as its net profit grows 43.8% YoY to Rs 135 crore in Q2FY25, helped by lower finance costs. Revenue increases 7.7% YoY to Rs 1,949.9 crore during the quarter. It features in a screener of stocks with improving return on equity (RoE) over the past two years.

  • Marico rises sharply as its net profit grows by 19.8% YoY to Rs 423 crore in Q2FY25. Revenue increases by 9.2% YoY to Rs 2,746 crore, driven by improvements in the Indian and international markets. It appears in a screener of stocks near their 52-week highs.

  • Prestige Estates Projects is falling as its net profit declines by 77.4% YoY to Rs 192.2 crore in Q2FY25 due to higher raw materials, contractor, employee benefits, and finance costs. Revenue decreases by 25.6% YoY to Rs 2,423.8 crore, caused by lower sales and collections. It shows up in a screener of stocks where promoters are decreasing their shareholding.

  • Nifty 50 was trading at 24,365.20 (-101.7, -0.4%), BSE Sensex was trading at 80,237.85 (-131.2, -0.2%) while the broader Nifty 500 was trading at 22,726.55 (-68.5, -0.3%).

  • Market breadth is highly positive. Of the 1,950 stocks traded today, 1,276 were in the positive territory and 632 were negative.

Riding High:

Largecap and midcap gainers today include Indian Railway Finance Corporation Ltd. (155.55, 8.4%), Rail Vikas Nigam Ltd. (465.35, 6.0%) and Aditya Birla Capital Ltd. (215.37, 5.3%).

Downers:

Largecap and midcap losers today include Honeywell Automation India Ltd. (45,193.30, -7.7%), Dixon Technologies (India) Ltd. (14,175.60, -5.1%) and Voltas Ltd. (1,697.90, -4.1%).

Movers and Shakers

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

Top high volume gainers on BSE included Capri Global Capital Ltd. (210.68, 14.2%), Data Patterns (India) Ltd. (2,478.50, 12.5%) and Action Construction Equipment Ltd. (1,304.80, 10.1%).

Top high volume losers on BSE were Honeywell Automation India Ltd. (45,193.30, -7.7%), Voltas Ltd. (1,697.90, -4.1%) and Hitachi Energy India Ltd. (13,695.85, -3.9%).

Redington Ltd. (182.77, 9.7%) was trading at 19.2 times of weekly average. Vardhman Textiles Ltd. (458.10, 4.7%) and ITI Ltd. (228.65, 5.2%) were trading with volumes 10.6 and 9.2 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

8 stocks overperformed with 52 week highs, while 3 stocks hit their 52 week lows.

Stocks touching their year highs included - City Union Bank Ltd. (174.43, -1.4%), Crisil Ltd. (5,372.30, 3.2%) and Deepak Fertilisers & Petrochemicals Corporation Ltd. (1,214.75, -1.4%).

Stocks making new 52 weeks lows included - Astral Ltd. (1,746.90, -0.7%) and Sheela Foam Ltd. (809.45, -1.9%).

28 stocks climbed above their 200 day SMA including Laxmi Organic Industries Ltd. (269.65, 6.9%) and Aditya Birla Capital Ltd. (215.37, 5.3%). 9 stocks slipped below their 200 SMA including Honeywell Automation India Ltd. (45,193.30, -7.7%) and Cipla Ltd. (1,418.25, -4.0%).

 
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The Baseline
30 Oct 2024
Five stocks to buy from analysts this week - October 30, 2024
By Divyansh Pokharna

1. Varun Beverages:

KR Choksey maintains a ‘Buy’ call on thisbeverages company with a target price of Rs 738, indicating a potential upside of 21.1%. Varun Beverages reported revenue growth of 24.1% YoY to Rs 4,804.7 crore in Q3CY24, outperforming analyst expectations by 3.6% and Trendlyne’s Forecaster estimates by 4.9%. This growth was primarily fueled by strong performance in its carbonated soft drinks, juices, and water segments.

The company’s net profit grew by 23.7% YoY to Rs 619.6 crore, driven by higher sales and improved margins. The growth was partially offset by an 89.7% increase in finance costs related to the acquisition of BevCo, a Kerala-based beverage company. Analyst Dipak Saha notes that the company’s expansion in India is on track, with new facilities expected to be commissioned before summer next year. With some facilities opening in early 2025 (January-February) and the rest by August, Saha expects this expansion to double the firm’s capacity from current levels.

The company also plans to expand its facilities in Africa to double its capacity there by February 2025. Saha remains optimistic, noting that ongoing expansion in Africa, new facilities in India, and product innovations like an upcoming jeera-based beverage should be the major growth drivers for the company.

2. ICICI Bank:

Edelweiss reiterates its ‘Buy’ rating on this bank with a higher target price of Rs 1,490. This indicates a potential upside of 11.9%. In Q2FY25, the bank's net interest income (NII) increased by 3% QoQ to Rs 20,048 crore, though net interest margin (NIM) fell by 9 bps to below 4.3%. Meanwhile, the cost-to-income (C/I) ratio improved to 38.6%, down 108 bps, as operating expenses remained stable due to lower employee costs.

Analysts Raj Jha, Umang Patil, and Sanjana Faujdar, said, “The contraction in NIM was expected but improved C/I ratio & lower credit cost is a positive. We expect the bank to maintain strong performance due to its digital initiatives and solid balance sheet.” 

ICICI Bank is optimistic about its balance sheet, as it does not anticipate any loan growth challenges in FY25 and is confident in generating sufficient deposits to fund loan growth. The management indicated that there are many opportunities present to drive risk-calibrated growth, particularly in the credit card segment, which currently constitutes 5% of the overall mix and has a minimal impact on credit costs.

Jha, Patil, and Faujdar noted that operating expenses may rise slightly in H1 FY25 due to increased spending related to festive activities and technology investments. They expect the bank’s price-to-earnings (P/E) ratio to decrease from 17.9 in FY24 to 13.4 by FY26.

3. Strides Pharma Science:

Sharekhan reiterates its ‘Buy’ rating on this pharma company with a target price of Rs 1,874, indicating a potential upside of 25.5%. The analysts highlight Strides Pharma’s investment in nasal sprays and other areas, as part of a long-term strategy focused on achieving $400 million plus in revenue from the generics segment. The company has identified three opportunities within the nasal spray market, which they believe will compensate for a decline in soft gelatin volumes.

In Q2FY25, the company reported a 20% YoY revenue growth to Rs 1,201 crore, largely driven by its US business, which achieved record sales of $75 million. EBITDA margin improved by 71 bps YoY to 20%. The company saw unexpectedly high demand for the GLP-1 drug, used in the treatment of diabetes and obesity. The surge was driven by two key factors: the dosage requirement for pens — an injection to deliver insulin into the body, is twice as high, and some customers miscalculated their volume forecasts, resulting in greater demand than initially expected. The company also relaunched products from its inactive portfolio, resulting in a surge in market share and revenue in the US.

The analysts note that cost control measures and a healthy product mix support the 20% annual EBITDA growth guidance for FY25. They expect a revenue CAGR of 12.5% and a net profit CAGR of 33.3% over FY25-27.

4. Can Fin Homes:

Axis Direct maintains a ‘Buy’ rating on this housing finance company, with a target price of Rs 1,000, implying a potential upside of 15.9%. Can Fin Homes has shown strong growth in sanctions and disbursements, with the latter up 30% YoY to Rs 2,617 crore in Q2FY25. The company’s management anticipates this momentum to continue, projecting total disbursements of ~Rs 10,000 crore for FY25.

Analysts Dnyanada Vaidya and Pranav Nawale said, “Driven by positive expectations on NIMs, along with the availability of multiple levers, we anticipate a healthy CAGR of 15% in NII and 17% in earnings over FY25-27.” They believe the cost ratios are expected to remain between 17-18% due to the company’s investment in technology and the establishment of a marketing team.

The company’s management expects assets under management (AUM) growth of 13-14% in FY25, with further acceleration to 15-17% by FY26 onwards. Vaidya and Nawale attribute this growth to the addition of 15-20 branches each year and the company's expansion into North and West India.

5. ICICI Prudential Life Insurance Company:

Motilal Oswal maintains a ‘Buy’ rating on this life insurance firm with a target price of Rs 900, implying a potential upside of 17.1%. The company reported a 13.1% YoY growth in new business premium (NBP) to Rs 4,930 crore in Q2FY25. Value of new business grew 1.6% YoY to Rs 590 crore, but margins declined 460 bps on a YoY basis to 23.4%, missing analysts’ expectations of 25%. This margin decline was due to a shift towards Unit Linked Insurance Plans (ULIPs), which generally have lower margins.

Analysts Prayesh Jain and Nitin Aggarwal are optimistic about the insurer’s strategy to grow its network and introduce new products, which cater to customers seeking investment benefits and greater liquidity. Additionally, to enhance financial stability, the company plans issuance of non-convertible debentures worth Rs 1,400 crore. 

Analysts are optimistic as the company sees strong growth potential in its proprietary channels due to increased investments in expanding its agency network and enhancing the skills of its agents. Jain and Aggarwal expect the firm to deliver a VNB CAGR of 20% over FY25-27.

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

(You can find all analyst picks here)

 
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The Baseline
29 Oct 2024
By Satyam Kumar

The ongoing correction in the Indian stock market has left many retail investors wondering about the reasons behind the heavy selling. While the Middle East war is an important factor here, the relatively expensive valuations of the Indian firms, downbeat Q2 results, and a slowing Indian economy are other reasons.

Foreign institutional investors (FIIs), who are the most fickle players in a stock market, have according to Trendlyne’s FII & DII dashboard, sold over Rs 90,000 crore worth of equities in the Indian market in October (the highest ever in a single month). This suggests that FIIs are booking profits and reallocating some investments to China, which currently appears to be a more affordable market. As a result, the Nifty50 is trading at a discount of over 7% from its all-time high. Even promoters, who are closely tracked for their long-term bets on their companies, have been cashing out a sizeable chunk of their holdings.

This chart of the week takes a look at promoter activity over the past quarter. Given promoters' significant influence over board selection and key decisions, their trading activity can be a leading indicator that gives insights into the future of the business. According to Trendlyne’s shareholding stock screeners, promoters of 155 of the top 500 firms have reduced their shareholding, while just 23 increased it over the past quarter.

Stocks with expensive PEs see corrections, promoters selling stakes

Many stocks trading at very high price-to-earnings (PE) ratios or with a Trendlyne valuation score of below 35 have seen significant correction over the past month. An easy-to-understand value metric tracked on Trendlyne is the percentage of days the stock has traded below the current PE ratio. If this is more than 80%, it indicates that the stock usually trades below its current PE and is at a relatively high valuation, or in the “Strong Sell Zone”. This could explain why promoters are cutting their stake.

Out of the 155 stocks where promoters decreased their stake in the last quarter, 93, or 60%, are in the Sell Zone or Strong Sell Zone. Firms like Prestige Estates Project, Vedanta, Max Financial Services, KPR Mill, and Adani Energy Solutions are in the Strong Sell Zone. Meanwhile, JK Tyre & Industries, Welspun Living, Patanjali Foods and 33 other firms are in the Sell Zone — which means that stock has traded below the current PE for at least 60% of the days.

Notable sells by promoters

According to a Trendlyne screener that tracks promoter stake cuts of over 2% in Nifty500 firms, 31 companies have witnessed significant promoter selling over the past quarter. Companies appearing in this screener include GE T&D India, Easy Trip Planners, Route Mobile, Sterling and Wilson Renewable Energy, InterGlobe Aviation and Adani Energy Solutions among others.

GE T&D India, an industrial machinery firm, saw its promoter offload a 15.6% stake via an offer for sale priced at Rs 1,400 per share — around Rs 300 below the then trading price. This resulted in stock hitting a lower circuit of 5% the day the offer opened for subscription on September 19.

Meanwhile, Easy Trip Planners’ promoter, Nishant Pitti sold half of his stake in the past quarter and currently holds only 14.2%. This has reduced the cumulative promoter holding from 64.3% a quarter ago to slightly above 50% as of September 2024. The stock currently trades at nearly half its 52-week high of Rs 54.

Similarly, at the end of August 2024, Rakesh Gangwal, co-founder and promoter of airline operator, InterGlobe Aviation (Indigo), sold a 6% equity stake valued at over Rs 10,000 crore. The Gangwal-backed promoter group’s stake has dropped from 36.7% in 2019 to 13.5% as of September 2024. This includes the 8.2% stake of Chinkerpoo Family Trust – whose trustees are Shobha Gangwal and JPMorgan Trust Company of Delaware – and Rakesh Gangwal's personal 5.3% stake.

This all started when the partnership between co-founders Rahul Bhatia and Rakesh Gangwal soured and fell apart in 2019. In February 2022, Gangwal resigned from IndiGo’s board as a non-executive, non-independent director and announced plans to reduce his stake. “I have been a shareholder in the company for more than 15 years, and it's only natural to someday think about diversifying one's holdings,” Gangwal explained in his resignation letter.

Significant corrections have led to stake additions

With the ongoing correction in the Indian stock market, many stocks are trading at a substantial discount from their all-time highs. Promoters are taking this as an opportunity to increase their stakes, though the list of buyers is notably shorter compared to the number of sellers.

While major promoter sells often make news headlines, however, the case is not the same when they increase their stake. This is likely because they don’t want to drive up the price while they are stacking up on those shares. Trendlyne’s screener, however, constantly tracks these activities and currently highlights over 20 stocks where promoters have increased their holdings over the past quarter.

For instance, Maharashtra Seamless, a steel pipe manufacturer, saw its promoter, Jindal Group, add around 2.5 lakh shares year-till-date in 2024. Trendlyne categorises this stock as a “Value Stock, Under Radar”, noting the company’s sound financials, with the stock currently trading at a discount of over 40% from its all-time high.

Similarly, Adani Green Energy, an Adani-Group firm, witnessed stake additions over the past two quarters as the stock currently trades at a discount of around 25% from its 52-week high. Other notable companies where promoters increased their stake over the last quarter include Indus Towers, GMR Airports Infrastructure, and Kalyan Jewellers India, among others.