My Newsfeed

Trendlyne Marketwatch
Trendlyne Marketwatch
21 Oct 2024
Market closes lower, L&T Finance's net profit up 16.9% YoY to Rs 695.6 crore in Q2FY25
By Trendlyne Analysis

Nifty 50 closed at 24,781.10 (-73.0, -0.3%) , BSE Sensex closed at 81,151.27 (-73.5, -0.1%) while the broader Nifty 500 closed at 23,263.25 (-177.5, -0.8%). Market breadth is sharply down. Of the 2,335 stocks traded today, 506 were on the uptrend, and 1,806 went down.

Indian indices closed in the red, with the benchmark Nifty 50 index closing at 24,781.1 points. The Indian volatility index, Nifty VIX, rose 5.6% and closed at 13.9 points. HDFC Bank’s net profit grew 5.3% YoY to Rs 16,821 crore in Q2FY25. Revenue rose 9% YoY to Rs 85,499.6 crore, owing to improvements in the retail and wholesale banking segments.

Nifty Midcap 100 and Nifty Smallcap 100 closed in the red, following the benchmark index. S&P BSE Midsmallcap 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 worst-performing sector of the day, with a fall of over 3%.

Asian indices closed mixed while European indices are trading in the red except Russia’s MOEX and RTSI index. US index futures traded in the red, indicating a cautious start to the trading session. Brent crude oil futures are trading in the green. JP Morgan observed significant Q3 earnings downgrades across major regions, with ongoing cuts in both the U.S. and Eurozone. Additionally, it noted that Brent, a key global benchmark typically correlated to sales growth, is indicating potential downside.

  • Relative strength index (RSI) indicates that stocks like Motilal Oswal Financial Services, Mastek, and Anand Rathi Wealth are in the overbought zone.

  • CG Power and Industrial Solutions is falling as its net profit declines 8.8% YoY to Rs 221 crore in Q2FY25. However, revenue rises 20.5% YoY to Rs 2,412.7 crore during the quarter, driven by higher sales in the power and industrial systems segments. It features in a screener of stocks with zero promoter pledge.

  • Mangalore Refinery And Petrochemicals falls sharply as it reports a net loss of Rs 696.9 crore in Q2FY25 compared to a net profit of Rs 1,051.7 crore in Q2FY24 due to higher cost of raw materials and lower inventory sales. However, revenue increases 26% YoY to Rs 28,785.9 crore during the quarter. The company appears in a screener of stocks underperforming their industry price change in the past quarter.

  • L&T Finance's Q2FY25 net profit grows by 16.9% YoY to Rs 695.6 crore. Its revenue increases by 25.1% YoY to Rs 4,019 crore due to improvements in interest and fees & commission incomes. The company appears in a screener of stocks with book value per share improving over the past two years.

  • Reliance Industries’ exports reach multi-quarter lows, both in absolute terms and as a percentage of its oil-to-chemicals (O2C) revenue in the latest quarter, amid ongoing volatility in the global oil market since the pandemic and recent geopolitical tensions. In Q2FY25, the company reported exports of Rs 70,631 crore, down 16% YoY.

  • Jio Financial Services' net profit grows by 3.1% YoY to Rs 689.1 crore in Q2FY25. Revenue increases 14.1% YoY to Rs 693.5 crore during the quarter, helped by higher interest and dividend income. It shows up in a screener of stocks where mutual funds increased their shareholding in the past quarter.

  • RBL Bank plunges to its 52-week low of Rs 175.5 per share as its net profit falls by 24.3% YoY to Rs 222.5 crore in Q2FY25 owing to a tax expense of Rs 69 crore compared to a tax return of Rs 203.5 crore in Q2FY24. However, revenue grows by 20.1% YoY to Rs 4,458.3 crore, driven by the treasury, retail, and corporate banking segments. It features in a screener of stocks with high interest payments compared to earnings.

  • TD Power Systems is rising as it signs a five-year contract with an Indian subsidiary of a major international company to supply traction motors for the European market. The company receives an initial order valued at Rs 18 crore, scheduled for delivery in April 2025. The total contract value is expected to reach Rs 300 crore over the next five years.

  • Rajiv Bajaj, CEO of Bajaj Auto, expects the company will achieve growth close to double digits by December. He highlights the 125cc+ segment has been growing 40% higher than the industry. Bajaj expects a cumulative volume of 45 lakh by year-end, and 47 lakh in FY25, driven by higher exports.

  • Axis Direct retains its 'Buy' call on Nestle India with a lower target price of Rs 2,640 per share. This indicates a potential upside of 12%. The brokerage remains positive on the company's long-term growth owing to improved rural penetration, new product launches, premiumisation of core categories like Maggi noodles, and expansion into new categories. It expects the firm's revenue to grow at a CAGR of 10.7% over FY25-27.

  • Tata Consumer Products falls sharply as its Q2FY25 revenue misses Forecaster estimates by 2.4% despite growing by 11.4% YoY to Rs 4,260.4 crore, attributed to improvements in the Indian and international businesses. Net profit rises by 7.7% YoY to Rs 364.4 crore owing to higher inventory destocking. It shows up in a screener of stocks with weakening technicals and share price decline.

  • Refex Renewables & Infrastructure rises to its 5% upper limit as its wholly-owned subsidiary, Refex Green Power, secures an order worth Rs 480 crore from NTPC to set up a 100 megawatt (MW) solar power project.

  • Foreign institutional investors (FIIs) offload a record Rs 77,701 crore (approx $9.25 billion) worth of shares till October 18, highlights Ace Equity. VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services, notes that FII funds are shifting to Chinese stocks, which remain relatively cheap. For context, Hong Kong's Hang Seng index had a price-to-earnings (P/E) ratio of nearly 12, compared to the Nifty50's roughly 23.

  • JSW Steel and JFE Steel Corp’s joint venture, JSquare Electrical Steel Nashik, enters a share purchase agreement to acquire 100% equity interest in Thyssenkrupp Electrical Steel India for Rs 4,051.4 crore, subject to closing adjustments.

  • IndiaMART InterMESH's Q2FY25 net profit grows by 18% QoQ to Rs 135.1 crore. Revenue increases 7.5% QoQ to Rs 413.2 crore, driven by improvements in the web & related services and accounting software services segments. It shows up in a screener of stocks with increasing revenue for the past eight quarters.

  • ICICI Lombard General Insurance's net profit grows by 20.2% YoY to Rs 694 crore in Q2FY25. Revenue increases 17.1% YoY to Rs 6,147.3 crore during the quarter, driven by higher sales in the fire, marine, health, crop, and motor segments. It features in a screener of stocks with increasing revenue every quarter for the past 3 quarters.

  • Sunil D’Souza, MD and CEO of Tata Consumer Products, highlights improved demand in rural areas, but urban demand has softened. He expects increased volumes in Q3FY25, compared to Q2. D’souza believes the company will achieve EBITDA margin growth of 50-100 bps YoY, and remains bullish about H2FY25.

  • Godrej Properties acquires 3 acres of land in Vastrapur, Ahmedabad, for a residential project with a saleable area of 0.9 million sq. ft. The project, primarily premium apartments, has an estimated booking value of Rs 1,300 crore.

  • Kotak Mahindra Bank falls sharply as its net profit misses Forecaster estimates by 1.9% despite growing by 4.8% YoY to Rs 3,343.7 crore in Q2FY25. Revenue rises by 17.7% YoY to Rs 15,900.5 crore, driven by improved treasury, retail, and wholesale banking segments. The bank's asset quality improves as its gross NPA contracts 23 bps YoY. However, its net NPA expands by 6 bps YoY.

  • Netweb Technologies India is rising as its net profit grows by 66.5% QoQ to Rs 25.7 crore, led by inventory destocking. Revenue increases 68.1% QoQ to Rs 251.1 crore during the quarter. The company appears in a screener of stocks where mutual funds increased their shareholding in the last quarter.

  • Hitesh Doshi, Chief Managing Director of Waaree Energies, highlights the company's plans to utilise the IPO funds to increase its capacity from 13 GW to 21 GW. As of June 2024, its utilized capacity stands at 45%. He adds that the firm plans to launch a 5.4 GW cell manufacturing facility in FY25, which is expected to enhance margins as it becomes operational.

  • PNC Infratech plunges to its 20% lower circuit as the Ministry of Road Transport & Highways (MoRTH) disqualifies the company and its special purpose vehicles (SPVs), PNC Khajuraho Highways and PNC Bundelkhand Highways from its tenders for one year.

  • HDFC Bank rises sharply as its net profit grows 5.3% YoY to Rs 16,821 crore in Q2FY25. Revenue increases 9% YoY to Rs 85,499.6 crore, owing to improvements in the retail and wholesale banking segments. However, the bank's asset quality declines as its gross and net NPA grow by 2 bps and 6 bps YoY, respectively. It appears in a screener of stocks near their 52-week highs with significant volumes.

  • Garden Reach Shipbuilders & Engineers is rising as it receives a contract worth Rs 491 crore from the Naval Physical and Oceanographic Laboratory under the Ministry of Defence's Defence Research and Development Organisation (DRDO) in Kochi. The contract covers the design, development, construction, equipment integration, testing, certification, commissioning, and supply of an Acoustic Research Ship (ARS).

  • Tech Mahindra rises sharply to its 52-week high of Rs 1,745 per share as its net profit grows by 46.8% QoQ to Rs 1,250.1 crore in Q2FY25. Revenue increases 5.2% QoQ to Rs 13,834.7 crore, helped by improvements in the IT and business process services (BPS) segments. It features in a screener of stocks with decreasing provisions.

  • Markets rise on early trading, Nifty 50 was trading at 24,935.75 (81.7, 0.3%), BSE Sensex was trading at 81,676.39 (451.6, 0.6%) while the broader Nifty 500 was trading at 23,513.85 (73.2, 0.3%).

  • Market breadth is in the green. Of the 2,009 stocks traded today, 1,141 were on the uptick, and 817 were down.

Riding High:

Largecap and midcap gainers today include Bajaj Auto Ltd. (10,500.50, 4.3%), Oberoi Realty Ltd. (1,995.55, 3.3%) and Zomato Ltd. (265.70, 3.2%).

Downers:

Largecap and midcap losers today include Tata Consumer Products Ltd. (1,017.05, -7.0%), Jindal Stainless Ltd. (698.85, -5.9%) and ABB India Ltd. (8,279.70, -5.7%).

Volume Rockets

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

Top high volume gainers on BSE included Amber Enterprises India Ltd. (6,344.45, 17.4%), Tejas Networks Ltd. (1,318.60, 11.0%) and Tata Chemicals Ltd. (1,189, 9.3%).

Top high volume losers on BSE were IndiaMART InterMESH Ltd. (2,508.60, -16.7%), RBL Bank Ltd. (176.14, -14.2%) and Tata Consumer Products Ltd. (1,017.05, -7.0%).

TVS Holdings Ltd. (14,000, 3.7%) was trading at 10.3 times of weekly average. Dalmia Bharat Ltd. (1,830.80, -1.2%) and Kama Holdings Ltd. (2,684.15, 2.5%) were trading with volumes 8.9 and 8.8 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

13 stocks made 52 week highs, while 8 stocks were underachievers and hit their 52 week lows.

Stocks touching their year highs included - HCL Technologies Ltd. (1,843.60, -0.8%), JM Financial Ltd. (147.05, -7.3%) and Multi Commodity Exchange of India Ltd. (6,629, 1.0%).

Stocks making new 52 weeks lows included - IDFC First Bank Ltd. (70.40, -1.6%) and IndusInd Bank Ltd. (1,308.25, -2.9%).

8 stocks climbed above their 200 day SMA including Kama Holdings Ltd. (2,684.15, 2.5%) and L&T Technology Services Ltd. (5,255, 2.4%). 35 stocks slipped below their 200 SMA including PNC Infratech Ltd. (366.80, -20%) and IndiaMART InterMESH Ltd. (2,508.60, -16.7%).

 
logo
The Baseline
18 Oct 2024
Five Interesting Stocks Today - October 18, 2024

1. HDFC Asset Management Company:

Thisasset management company rose 6.8% over the past week after announcing itsQ2FY25 results on October 15. The company’s net profit surged by 31.8% YoY to Rs 576.8 crore, while revenue improved by 38% to Rs 887.2 crore, led by a strong growth in assets under management (AUM). Its quarterly average AUM was 75.8K crore, representing a 44.6% growth. The company appears in ascreener of stocks with book value per share improving over the past two years.

HDFC AMC's market share in quarterly AUM increased by 30 basis points YoY, reaching 11.5%.  With a 49.4% rise in unique customers, the firm now has 11.8 million unique customers and 20.7 million live accounts. HDFC AMC saw faster growth in smaller cities (B-30) compared to larger cities (T-30), driven by 24 new branches and stronger distribution. B-30 locations constituted 19.5% of the average AUM in September.

Over the past 3-4 years, HDFC AMC has introduced nearly 100 new products. The management has indicated that there may be fewer product launches in the next couple of quarters but aims to increase its market share across key categories, including equity MFs, debt funds, liquid funds, and SIPs. MD and CEO Navneet Munotsaid, "We are looking to attract funds from NRIs in our existing products. We have established a wholly owned subsidiary in GIFT City, HDFC AMC International IFSC, where one of our products will launch soon, followed by three more, all supporting domestic mutual funds." 

Munot mentioned that HDFC AMC has made significant investments over the past 25 years, resulting in a diverse product range. He expects continued growth as the company aims to increase its market share (11.5% currently) and expand its participation in the industry.

Post results, KR Choksey hasmaintained a ‘Buy’ rating with a target price of Rs 5,388, indicating a potential upside of 14.4%. The brokerage highlights that the company is well-positioned to benefit from the growing trend of systematic investments and increasing financial literacy among retail investors.

2. HCL Technologies:

This IT consulting firm surged to a new 52-week high of 1,885 on Wednesday after rising 2.7% over the past week, as it announced Q2 results. HCL reported revenue growth of 8.4% YoY at Rs 28,376 crore, with net profit up 10.5% at Rs 4,235 crore. Both revenue and profit exceeded Forecaster estimates by 1.7% and 5.7%, respectively.

If we look at the revenue mix, the IT & Business services segment, accounting over 75% of the total revenue, witnessed growth of 8.3% on a YoY basis in Q2. Meanwhile, HCL Software, which made up over 10% of total revenue, outperformed other segments with 14.5% growth. With growth across all verticals, the company has raised the lower end of its FY25 revenue guidance from 3% to 3.5%, and is now targeting YoY growth between 3.5% to 5%.

HCL won 20 deals in Q2 – 12 from services and 8 from HCL Software – with a total contract value of $2.2 billion (Rs 18,500 crore). Commenting on orders in the GenAI segment, MD & CEO, C. Vijayakumar, said, “We had strong order wins in GenAI-related programs. Most of the deals are now getting embedded with AI capabilities.” He also highlighted the wide adoption of HCLTech's GenAI platform, AI Force, for the transformation of services with AI capabilities.

Motilal Oswal has named HCL Tech as its top pick among large-cap IT firms, based on its IMPACT framework. This framework evaluates companies on factors like industry exposure, margin expansion, partnership, automation threat, client strategies and next-gen readiness. They believe the firm is well positioned to benefit from the GenAI revolution. With a target price of Rs 2,300, this IT firm has a potential upside of 23.8%.

3. Nestle India:

This packaged foods company declined by 3.4% after its result declaration on 17th October. The company’s net profit rose by 6.9% YoY to Rs 746.6 crore in Q2FY25, while its revenue rose by 3.6% on the back of rising domestic sales. The results were a disappointment, and missed Trendlyne’s Forecaster estimates for revenue by 9.7% and the net profit estimate by 16.5% due to declining export sales. The stock appears in a screener for stocks with PE higher than the industry PE.

In Q2FY25, the company’s EBITDA margin shrunk by 130 basis points to 22.9%, falling short of the analyst poll expectation of 24.2%. HDFC Securities highlighted that the demand environment for the FMCG sector remains challenging due to subdued macro indicators, inventory corrections by some companies and adverse weather conditions affecting cold beverage consumption. However, they anticipate a sector recovery in H2FY25, driven by healthy reservoir levels that should enhance rabi season crop output.

The company’s e-commerce business saw a 38% growth, the highest in seven quarters.It contributed 8.3% to domestic sales, largely due to quick commerce. Organized trade also grew, fueled by demand for noodles, beverages, and premium products. The company emphasised that its ‘Rurban’ strategy helped penetration and distribution in rural markets, adding over 800 new touchpoints, including cash distributors and wholesale hubs. 

Nestle India Chairman and Managing Director Suresh Narayanan said that some key brands like ‘nescafe’ coffee saw pressure due to softer consumer demand and high commodity prices, especially for coffee and cocoa. In the last nine months, he said that 65% of their top 12 brands, including ‘Maggi’ noodles, ‘Milkmaid’ and ‘Munch’ chocolate have shown positive double digit volume growth. He said: “Despite a challenging external environment with muted consumer demand, we remained resilient in our pursuit to deliver growth.” 

In April, the company faced controversy over sugar in its infant product, ‘Cerelac.’ In response MD, Sunil Narayanan announced the launch of 14 variants with no refined sugar. 

HDFC Securities has given a ‘Accumulate’ rating to Nestle with a target price of Rs 2,700. The brokerage projects the company’s revenue/PAT/EBITDA to grow at a 9%, 14%, 12% CAGR respectively from FY25 to FY27, driven by increased competitive intensity in infant nutrition, undoing of price laddering in bundle packs of Maggi, and downtrading in coffee business to weigh on revenue growth.

4. KEI Industries:

This electrical equipment maker has declined by over 14% in the past three days since the announcement of its Q2FY25 results on October 15. During the quarter, net profit missed Trendlyne’s Forecaster estimates by 6.4% despite growing by 10.4% YoY to Rs 154.8 crore. The company’s EBITDA margins contracted by 70 bps to 9.7% due to higher raw material costs, finance costs, and employee expense benefits. The volatility in copper and aluminum prices also impacted margins. The company hiked prices by 10% to offset this. However, the management believes this will average out over six months.

Revenue for KEI increased by 17.5% YoY to Rs 2,296.6 crore, driven by the cables & wires (C&W). During the quarter, the cables segment (which constitutes 93% of the revenue) grew by 21% YoY. The engineering, procurement & construction (EPC) projects segment (which contributes ~6% to the revenue) declined  58% YoY, mainly due to delays in the execution of projects. As of September 2024, KEI Industries’ pending order book stands at Rs 3,847 crore. 

The wire maker has announced a Rs 2,000 crore QIP (qualified institutional placement) to support the Sanand project. The project requires a capex of Rs 1,800-1,900 crore. The QIP will help the company avoid additional borrowing as it aims to become debt-free. Commercial production at the plant is set to begin in Q1FY26 and has a revenue potential of Rs 5,000 crore.  

Going forward, KEI Industries anticipates strong demand from the solar renewable energy and transmission sectors. Thermal power projects, pump storage projects, data centers, and highway tunnelling projects are also expected to drive demand. CMD Amit Gupta said, "We expect recovery due to strong demand from the energy sector as well as capacity additions. For FY25, we expect revenue growth of ~17% and margins at 10.5-11%. Over the longer term, we aim to grow our revenues by 15-16% CAGR". 

Anand Rathi highlights that KEI is seeing strong demand from data centres, solar and wind renewable energy. The brokerage believes the company will benefit from the structural demand for cables and wires. It maintains its ‘Hold’ rating, with a target price of Rs 4,796.

5. PNC Infratech:

This roads & highways company rose 4.4% on October 16, and touched its one-month high after securing two engineering, procurement and construction (EPC) orders worth Rs 4,630 crore from Maharashtra State Road Development Corp (MSRDC). The first project involves the construction of the Pune Ring Road, spanning 13.8 km from Indori to Chimbali, valued at Rs 2,268 crore. The second project includes building a 28.9 km expressway connector from Jalna to Nanded, valued at Rs 2,362 crore.

The company also rose 2.3% on October 14 after receiving a Rs 2,039.6 crore order from the City & Industrial Development Corporation of Maharashtra (CIDCO). This contract includes integrated infrastructure development of roads, construction of major and minor structures such as flyovers, minor bridges, vehicular underpasses (VUPS), pedestrian underpasses (PUPS), and allied electrical works, including street lighting.

T. R. Rao, Director (Infra) of PNC Infratech, said that the company has revised its revenue guidance for FY25, and is now expecting a 10% YoY decline instead of 10% YoY growth. However, they anticipate revenue to grow 15% YoY in FY26. As of June 30, the company’s unexecuted order book stands at Rs 19,098 crore, which is 2.5 times of FY24 revenue. PNC Infratech aims to secure new orders worth Rs 13,000 - 15,000 crore in FY25.

In Q1FY25, the company reported a net profit growth of over 2X YoY to Rs 575.2 crore, driven by a 29.7% decline in material costs, while revenue grew 4.1% YoY to Rs 2,197.8 crore. This company is currently in a strong PE buy zone.

Geojit BNP Paribas upgraded its rating for PNC Infratech from “Hold” to “Accumulate,” with a target price of Rs 526. The brokerage anticipates sales growth of approximately 17.2% and an EBITDA margin of around 13.4% in FY26.

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
18 Oct 2024
Market closes higher, Hindustan Zinc's profit rises 34.6% YoY to Rs 2,327 crore in Q2FY25
By Trendlyne Analysis

Nifty 50 closed at 24,854.05 (104.2, 0.4%) , BSE Sensex closed at 81,224.75 (218.1, 0.3%) while the broader Nifty 500 closed at 23,440.70 (63.7, 0.3%). Market breadth is in the red. Of the 2,282 stocks traded today, 1,033 were gainers and 1,227 were losers.

Nifty 50 closed higher after rising throughout the day. The Indian volatility index, Nifty VIX, fell 2.6% and closed at 13 points. Axis Bank’s net profit grew 18% YoY to Rs 6,917.6 crore in Q2FY25. The bank's asset quality improved, with its gross and net NPAs contracting by 29 bps and 2 bps YoY, respectively, during the quarter.

Nifty Smallcap 100 closed flat, while Nifty Midcap 100 closed in the green. Nifty Private Bank and BSE Metal Index were among the top index gainers today. According to Trendlyne’s Sector dashboard, Metals & Mining emerged as the best-performing sector of the day, with a rise of 1.1%.

Asian indices closed mixed. European indices are trading mixed. US index futures are trading in the green, indicating a positive start to the trading session. Brent crude oil futures are trading lower.

  • Money flow index (MFI) indicates that stocks like Mastek, Hitachi Energy India, Divi's Laboratories, and Motilal Oswal Financial Services are in the overbought zone.

  • Aether Industries' revenue rises by 21.1% YoY to Rs 198.8 crore in Q2FY25 due to strong performance in the large-scale manufacturing segment. However, net profit declines 5.1% YoY at Rs 348 crore due to lower inventory sales. It shows up in a screener of stocks where mutual funds have increased their shareholding in the past quarter.

  • Hindustan Zinc's net profit rises 34.6% YoY to Rs 2,327 crore in Q2FY25. Revenue increases 20.9% YoY to Rs 8,004 crore, driven by higher sales from the zinc, lead, and silver metals segment during the quarter. The company appears in a screener of stocks with increasing revenue every quarter for the past three quarters.

  • Emkay upgrades Mahindra & Mahindra Financial Services to 'Buy' from 'Sell' with a higher target price of Rs 360 per share. This indicates a potential upside of 23.6%. The brokerage believes the company's medium-to-long-term strategy will deliver diversified and profitable growth. It expects the firm's net profit to grow at a CAGR of 31.15 over FY25-27.

  • Anil Rai Gupta, Chief Managing Director of Havells India, anticipates margin improvements in H2FY25 compared to H1, with core margins at around 13%, excluding Lloyd. He notes a positive start to the festive season. Gupta highlights the new cables manufacturing facility in Tumkur began operations last month, and plans for an additional Rs 450 crore expansion.

  • Elecon Engineering plunges as its Q2FY25 net profit falls 1% YoY to Rs 87.7 crore due to higher raw materials and employee benefits expenses. However, revenue grows by 4.4% YoY to Rs 519.5 crore, helped by an improvement in the material handling equipment segment. It shows up in a screener of stocks with sells by superstar investors.

  • Tata Communications is rising as its net profit grows 3% YoY to Rs 227.2 crore. Revenue increases 18.4% YoY to Rs 5,767.4 crore, driven by a 21% YoY growth in data revenue during the quarter. The company appears in a screener of stocks where mutual funds increased their shareholding over the past two months.

  • Hindware Home Innovation's board of directors approves the rights issue of 1.1 crore shares worth Rs 250 crore at an issue price of Rs 220 per share. The board sets October 25 as the record date for the rights issue.

  • According to JM Financial, Oberoi Realty, Adani Energy, Voltas, and Alkem Laboratories, among others, will likely be included in the MSCI India Standard Index as part of its rebalancing. The index rejig is scheduled for November 6, with changes effective from November 26.

  • Ajmera Realty rises sharply as its board of directors approves the preferential issue of 31.6 lakh shares worth Rs 225 crore at an issue price of Rs 711 per share.

  • JSW Energy's step-down subsidiaries, JSW Renew Energy Six and JSW Renew Energy Thirty, sign power purchase agreements (PPAs) with Maharashtra State Electricity Distribution Company (MSEDCL) for Solar-Wind Hybrid projects connected to the state transmission utility (STU), with a total capacity of 1,200 MW. The agreements are set for a 25-year term at a tariff of Rs 3.6 per kWh.

  • Polycab India is falling as its net profit misses Forecaster estimates by 1.7% despite growing by 3.3% YoY to Rs 439.8 crore in Q2FY25. Revenue increases 31.1% YoY to Rs 5,574.6 crore, helped by improvements in the wires & cables and fast-moving electrical goods (FMEG) segments. It shows up in a screener of stocks where promoters are decreasing their shareholding.

  • Indraprastha Gas and Mahanagar Gas decline as they confirm a 20% ad hoc reduction in the allocation of cheap APM gas for the CNG segment, effective October 16. According to JM Financial, the latest cut will likely result in cheap $6.5 per mmBtu APM gas being replaced with expensive gas costing $10-14 per mmBtu. This may lead to increased weighted average gas cost for the CNG business, causing a CNG price hike of Rs 3.5-5/kg or 5-7%.

  • Foreign institutional investors sell equity worth Rs 11,687.4 crore in the market over the past week, according to Trendlyne's FII dashboard. Index options witness the highest inflow of Rs 51,321.1 crore from foreign investors. Meanwhile, mutual funds are net buyers in the equity market, investing Rs 6,357.8 crore during the same period.

  • Tata Chemicals' net profit plunges 54.7% YoY to Rs 194 crore in Q2FY25 due to higher employee benefits and freight & forwarding expenses. Revenue remains flat YoY at Rs 3,999 crore but beats Forecaster estimates by 2.1%. It shows up in a screener of stocks underperforming their industries in the past quarter.

  • Mazagon Dock Shipbuilders surges as its board of directors schedules a meeting on October 22 to consider the declaration of interim dividend for FY25 and sub-division / split of equity shares. The company sets October 30 as the record date for its interim dividend.

  • Godavari Biorefineries sets its IPO price band at Rs 334-352 per share. The issue size is Rs 554.9 crore, with a fresh issue worth Rs 325 crore and an offer for sale of around Rs 229.9 crore. The issue opens on October 23.

  • Ceat's net profit drops 41.5% YoY to Rs 121.5 crore due to higher raw material costs. However, revenue increases 8.2% YoY to Rs 3,304.5 crore, surpassing the Forecaster estimates marginally by 0.6%. It appears in a screener of stocks with improving book value over the past two years.

  • Zomato's board of directors schedules a meeting for October 22 to consider a proposal to raise funds via a qualified institutional placement (QIP) of equity shares. The board will also announce the company's Q2FY25 earnings during the meeting.

  • Axis Bank is rising as its net profit grows by 18% YoY to Rs 6,917.6 crore in Q2FY25. Revenue increases 17.3% YoY to Rs 37,141.7 crore, driven by improvements in the treasury, corporate, and retail banking segments. The bank's asset quality improves as its gross and net NPAs contract by 29 bps and 2 bps YoY, respectively, during the quarter.

  • Manappuram Finance plunges more than 12% after the Reserve Bank of India (RBI) imposes restrictions, citing material supervisory concerns. RBI has barred its subsidiary, Asirvad MFI, from sanctioning or disbursing loans, effective October 21. Due to this action, various brokerages have downgraded the stock's rating.

  • LTIMindtree falls sharply as its net profit grows by 10.3% QoQ to Rs 1,251 crore in Q2FY25. Revenue increases by 3.9% QoQ to Rs 9,731.8 crore owing to improvements in the banking, financial services & insurance (BFSI), technology, media & communications, manufacturing & resources, and consumer business segments. However, it appears in a screener of stocks with an increasing trend in non-core income.

  • Diamond Power Infrastructure receives an order worth Rs 99.9 crore from Reverence Infrastructure India to supply 11KV aluminum cables for a project under the Revamped Distribution Sector Scheme (RDSS).

  • Wipro rises sharply as its Q2FY25 net profit grows by 6.8% QoQ to Rs 3,208.8 crore, helped by lower sub-contracting & technical, facility, and travel expenses. Revenue increases 2.5% QoQ to Rs 23,263.5 crore, driven by improvements in the Americas, Europe, and Asia Pacific, Middle East, & Africa (APMEA) segments. It features in a screener of stocks with increasing net profit for the past four quarters.

  • Infosys falls sharply as its net profit misses Forecaster estimates by 4.4% despite growing 2.2% QoQ to Rs 6,506 crore in Q2FY25. Revenue increases 3.8% QoQ to Rs 41,698 crore, attributed to improvements in the financial services, retail, communication, energy, utilities, resources & services, manufacturing, hi-tech, and life sciences segments. It features in a screener of stocks with expensive valuations according to the Trendlyne valuation score.

  • Nifty 50 was trading at 24,610.95 (-138.9, -0.6%) , BSE Sensex was trading at 80,742.93 (-263.7, -0.3%) while the broader Nifty 500 was trading at 23,187.70 (-189.3, -0.8%)

  • Market breadth is highly negative. Of the 1,896 stocks traded today, 289 were on the uptick, and 1,579 were down.

Riding High:

Largecap and midcap gainers today include Mazagon Dock Shipbuilders Ltd. (4,526.35, 6.8%), Axis Bank Ltd. (1,196.85, 5.7%) and Honeywell Automation India Ltd. (51,677.45, 4.3%).

Downers:

Largecap and midcap losers today include Indraprastha Gas Ltd. (451.70, -10.5%), LTIMindtree Ltd. (5,991.70, -6.3%) and Zomato Ltd. (257.45, -4.8%).

Movers and Shakers

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

Top high volume gainers on BSE included Aditya Birla Real Estate Ltd. (3,052.80, 6.9%), Mazagon Dock Shipbuilders Ltd. (4,526.35, 6.8%) and Tejas Networks Ltd. (1,187.70, 5.5%).

Top high volume losers on BSE were Manappuram Finance Ltd. (153.27, -13.6%), Indraprastha Gas Ltd. (451.70, -10.5%) and Mahanagar Gas Ltd. (1,582.25, -10.2%).

Go Digit General Insurance Ltd. (365, 1.2%) was trading at 6.7 times of weekly average. Ceat Ltd. (2,972.85, 2.8%) and Polycab India Ltd. (7,120.40, 0%) were trading with volumes 6.2 and 5.1 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 4 stocks tanked below their 52 week lows.

Stocks touching their year highs included - Motilal Oswal Financial Services Ltd. (1,029.70, 10.8%), Multi Commodity Exchange of India Ltd. (6,561.15, 3.5%) and Torrent Power Ltd. (1,973.65, 1.8%).

Stocks making new 52 weeks lows included - Zee Entertainment Enterprises Ltd. (132.46, 5.3%) and Anupam Rasayan India Ltd. (726.45, 0.4%).

10 stocks climbed above their 200 day SMA including Axis Bank Ltd. (1,196.85, 5.7%) and Mahindra & Mahindra Financial Services Ltd. (291, 3.1%). 36 stocks slipped below their 200 SMA including Indraprastha Gas Ltd. (451.70, -10.5%) and Mahanagar Gas Ltd. (1,582.25, -10.2%).

 
logo
The Baseline
17 Oct 2024
Is India's growth engine slowing down? Screener: Upcoming results of profit growth stocks
By Swapnil Karkare

In the last week of September, I visited Kochi. Uusally it's bustling, but this time, the city felt low on energy. The Marine Drive crowd had thinned, the spice sellers looked bored, and the malls were mostly filled with window shoppers and college students playing hooky from class. I thought it might be because of the rains or the Pitrupaksha season, when Indians avoid new purchases. 

A week later, the RBI announced its monetary policy, and commentary on the Indian economy flooded my news feed. From slowing car sales to subdued production, slowdown became the talk of the town. Headlines from The Economist and Bloomberg suggested that India's growth may be running out of steam. Perhaps what I saw in Kochi meant something more.

Despite our hopes for India as a ‘China+1’ economic destination, the world's fastest growing nation may be on a bumpy road. Is India reverting to the mean after the post-pandemic boom? Will growth bounce back?

In this week's Analyticks:

  • Is the world's major growth engine right now - India - slowing down?
  • Screener: Upcoming results for Nifty500 companies with previous quarter profit growth greater than 10% both YoY and QoQ

Let's do a health check.

GDP matters for stock markets

Stock markets often draw ire for not reflecting the real economy. But contrary to popular belief, markets do tend to reflect reality in the longer run. Our analysis of quarterly GDP growth rates and Nifty returns shows that over the past two decades, the broader market index has closely tracked economic growth. So if GDP growth stumbles, the markets will feel the brunt.



In the first quarter of this financial year, India’s GDP growth slowed to 6.7% YoY from 7.8% YoY the previous quarter. Many analysts have forecast a further decline in the growth rate in the second quarter. For example, Motilal Oswal estimates 6-6.5% growth in 2QFY25 (RBI is more optimistic than most, and forecasts 7% growth). 

Can this year's festive season cheer up consumers?

As we entered the September quarter, rising raw material costs, a drop in car sales, a high unemployment rate and a decline in tax collections together put the brakes on the Indian economy. 

Amnish Aggarwal, Head of Research at Prabhudas Lilladher, expressed caution about the FMCG sector owing to higher raw material costs. Similarly, Garima Kapoor, an economist at Elara Securities, pointed out that consumer spending has taken a hit, especially in cities due to dwindling savings and slow hiring in sectors like technology and retail. 

The rural areas are seeing some upside. Thanks to normal monsoons, farmers are cultivating more land. The drop in demand for jobs under the MNREGA scheme is another good sign. This scheme usually sees an uptick in employment when the rural economy is struggling, and a decline in demand suggests things are looking better.

Titan, Mamaearth, Himalaya, Dabur, Denver, Bata, and several D2C brands have joined Meesho Mall ahead of the festive season to tap into the tier-2+ market, where the e-commerce platform is popular. The platform has reportedly seen a 40% rise in orders during its recent Mega Blockbuster Sale. 

Online marketplaces have overall registered a 26% increase in just one week of festive sales, selling almost Rs. 55,000 crore worth of goods. ET reported that tier-2 and tier-3 cities accounted for a larger chunk of demand. We need to watch whether this demand holds steady through the next year and spreads across all sectors.

A long wait for the capex cycle

Last week, the statistical ministry released production data for August 2024, which had production contracting by 0.1% over last year. RBI’s Industrial Outlook Survey for Q2FY25 showed manufacturers less optimistic due to slowing demand, lower production, and low-capacity utilisation. However, companies expect marginal improvements in Q3FY25.


Mayank Jha, an economist at HDFC Bank, discussed in a LinkedIn post, emerging weakness in investment growth. Although we have seen a capital expenditure surge in a few sectors, there hasn’t been a broad-based recovery. Firms often announce large capex plans but fail to implement them due to lower capacity utilization. For instance, capex plans in electronics, food processing and textiles have largely remained on paper. 


On one hand, we're still waiting for the long-promised surge in private capex. On the other hand, government capex seems to have hit its limit. The elections stalled both central and state government capex, causing a loss of momentum. Dwindling tax revenues have made it even more challenging to meet the budgeted capex levels while keeping the fiscal math in check. 

Although the finance minister has assured a pickup in government capex after the subdued first quarter, this will be tough to deliver. The government faces the dual challenge of dwindling tax revenues and the need to keep the fiscal deficit in check. A war in the Middle East and rising oil prices for India could constrain government finances even more.

Outlook

I wish we had a (working) crystal ball to predict what the FY25 growth rate would be. Forecasts for FY25 have swung wildly, between 6.5% and 8%. Basically, no one knows.

One way to look at these numbers is that the 8% GDP growth mark achieved in FY24 is now the highest estimate for FY25, and may be out of reach. India's economic engine for now, may have shifted to a lower gear.

Screener: Upcoming results for Nifty500 companies with previous quarter net profit growth greater than 10% YoY and QoQ

Banking stocks among those with the highest net profit growth in Q1FY25

As we enter the result season for Q2FY25, we look at stocks that delivered the highest net profit growth in the previous quarter. This screener shows companies whose results are upcoming, whose net profits YoY and QoQ showed growth greater than 10% in Q1FY25. 

The screener is dominated by stocks from the banking & finance, software & services, chemicals & petrochemicals, food beverages & tobacco, and FMCG sectors. The most notable stocks in the screener are Zee Entertainment Enterprises, Max Financial Services, Biocon, Star Health and Allied Insurance, United Breweries, Go Digit General Insurance, Pidilite Industries, and Petronet LNG. 

Zee Entertainment Enterprises witnessed the highest QoQ and YoY net profit growth of 784.6% and 321.1%, respectively in its Q1FY25. This broadcasting & cable TV stock’s net profit surged due to the company’s efforts to optimize costs, helping to reduce manpower and marketing expenses. The company is scheduled to announce its results on Friday. Analysts at Keynote Capital believe that while concerns around ZEEL’s weak financials, governance, and litigation outcomes continue to persist, the initial signs of improving business are positive. But this company's last few quarters have been bumpy.

Star Health and Allied Insurance’s net profit grew by 216.9% QoQ and 56.7% YoY in Q1FY25, helped by strong investment performance and a Rs 25 crore tax return during the quarter. With its results to be announced on October 29, ICICI Securities believes that this general insurance company will grow in FY25, owing to price hikes, higher growth in new channels, recovery of new business growth, and better investment performance. 

You can find some popular screeners here.

 
Trendlyne Marketwatch
Trendlyne Marketwatch
17 Oct 2024
Market closes lower, Central Bank of India's net profit surges 51% YoY to Rs 912.8 crore in Q2
By Trendlyne Analysis

Nifty 50 closed at 24,749.85 (-221.5, -0.9%) , BSE Sensex closed at 81,006.61 (-494.8, -0.6%) while the broader Nifty 500 closed at 23,377 (-296.2, -1.3%). Market breadth is overwhelmingly negative. Of the 2,291 stocks traded today, 531 showed gains, and 1,731 showed losses.

Indian indices closed in the red after paring gains in the morning session. The Indian volatility index, Nifty VIX, rose 2.6% and closed at around 13.4 points. Hyundai Motor India’s Rs 27,870.1 crore IPO received bids for 2.4X the available 10 crore shares on offer on the last day of bidding. The retail investor quota got bids for 0.5X the available 4.9 crore shares.

Nifty Midcap 100 and Nifty Smallcap 100 closed lower. Nifty Realty and Nifty Auto closed deep in the red. According to Trendlyne’s sector dashboard, Hardware Technology & Equipment emerged as the worst-performing sector of the day, with a fall of 3.5%.

European indices traded higher, except Russia’s RTSI and MOEX indices which closed 0.4% lower each. Major Asian indices closed mixed. US index futures traded higher, indicating a positive start to the trading session as investors gear up for the country’s retail sales data expected to come out later today.

  • Bajaj Auto sees a short buildup in its October 31 futures series, with open interest increasing by 55.7% and a put-call ratio of 0.7.

  • Karur Vysya Bank rises as its net profit grows by 25.1% YoY to Rs 473.6 crore in Q2FY25. Revenue increases 22.3% YoY to Rs 1,324 crore, driven by improvements in the treasury, corporate, and retail banking segments. The bank's asset quality improves as its gross and net NPAs contract by 63 bps and 15 bps YoY, respectively, during the quarter.

  • Central Bank of India rises sharply as its net profit surges by 50.8% YoY to Rs 912.8 crore in Q2FY25, helped by reduced provisions. Revenue increases by 17.1% YoY to Rs 9,849.3 crore, driven by improvements in the treasure, retail, and wholesale banking segments. The bank's asset quality improves as its gross and net NPAs decline by 3 bps YoY and 95 bps YoY, respectively.

  • JSW Energy's subsidiary, JSW Renew Energy Seventeen, signs its first power purchase agreement (PPA) for a wind-solar hybrid project in Gujarat with Gujarat Urja Vikas Nigam (GUVNL). The agreement involves the supply of 192 MW of hybrid energy at Rs 3.3 per kWh for 25 years.

  • Foreign portfolio investors like Societe Generale, UBS Principal Capital Asia, and Tiger Pacific Master reduce their stakes in Paytm to below 1% in the September quarter. This selloff has contributed to a broader decline in foreign institutional ownership, with total foreign portfolio and foreign direct investment decreasing from 58.2% in June to 55.5% by September.

  • Kolte-Patil Developers rises sharply as its Q2FY24 sales value increases by 22% YoY to Rs 770 crore, driven by a 16% YoY growth in realisations to Rs 7,472 per sq ft. Collections rise 16% YoY to Rs 550 crore during the quarter.

  • Hyundai Motor India’s Rs 27,870.1 crore IPO received bids for 2.1X the available 10 crore shares on offer on the last day of bidding. The retail investor quota gets bids for 0.5X the available 4.9 crore shares.

  • KR Choksey initiates coverage on Cyient DLM with a 'Buy' call and a target price of Rs 842 per share. This indicates a potential upside of 21.4%. The brokerage believes the company is well positioned for growth in the next three years owing to strong long-term customer relationships, a strengthening order book, expansion plans in the US, and increased focus on the business-to-supplier (B2S) segments. It expects the firm's revenue to grow at a CAGR of 30.5% over FY25-27.

  • Auto stocks like Bajaj Auto, Hero Moto, and Maruti Suzuki face significant selling pressure. Bajaj Auto, during its September quarter results, expressed concerns about muted demand, lowering its growth guidance to 3-5%. This caution comes despite analysts and investors expecting a strong sales rebound during the festive season, usually a time of increased consumer spending in the auto sector.

  • Tata Power receives a letter of intent (LoI) from REC Power Development to acquire ERES-XXXIX Power Transmission, a project-specific special purpose vehicle (SPV). The project involves constructing a 765/400 kV GIS substation at Gopalpur, ~190 km of transmission lines, and 12 km of 400 kV line. The contract spans 35 years, with annual transmission charges of Rs 289.7 crore.

  • Reliance Industries is rising as its board sets October 28 as the record date for its 1:1 bonus share issue

  • Nestle India is falling as its net profit declines by 0.9% YoY to Rs 899.5 crore in Q2FY25, due to higher raw materials, finance, and corporate social responsibility expenses. However, revenue grows marginally by 0.8% YoY to Rs 5,110.9 crore, owing to improvements in the e-commerce, organised trade, and out-of-home (OOH) segments. It shows up in a screener of stocks with weakening technicals and share price decline.

  • Amit Chadha, Managing Director of L&T Technology Services, highlights the company’s medium-term target to achieve $2 billion in revenues. He also reiterates the FY25 revenue growth guidance of 8-10% and EBIT margin of 16%. Chadha expects the company’s margins will improve over H2FY25.

  • Crisil is rising as its Q2FY25 net profit grows by 12.9% YoY to Rs 171.6 crore. Revenue increases by 10.3% YoY to Rs 811.8 crore, driven by an improvement in the rating services segment. The company appears in a screener for stocks with no debt.

  • Larsen & Toubro's hydrocarbon arm bags an order worth Rs 1,000-2,500 crore to set up a 1,200 million tonnes per day (MTPD) nitrogen, phosphorus, and potassium (NPK) fertiliser plant for Rashtriya Chemicals and Fertilizers in Raigad. The company will carry out the order on a license, engineering, procurement, and construction (L-EPC) basis, and also set up associated utilities and off-site facilities for the plant.

  • Ircon International is rising as it signs a memorandum of understanding (MoU) with Patel Engineering to collaborate on identifying, pursuing, and executing infrastructure projects in India and overseas.

  • UBS downgrades SRF to a 'Sell' rating with a lower target price of Rs 2,100. The brokerage attributes weak demand for agrochemicals and the increasing market share of Chinese companies as the key factors. It also anticipates that refrigerant gas prices will remain low, adding to ongoing growth challenges for the company.

  • ICICI Direct retains its 'Buy' call on PVR INOX with a higher target price of Rs 1,960 per share. This indicates a potential upside of 21.3%. The brokerage expects the company's footfall to increase, owing to the upcoming festive quarter and strong content pipeline, which will lead to increased advertisement revenue. It expects the firm's revenue to grow at a CAGR of 11% over FY5-27.

  • MphasiS rises as its net profit grows 4.7% QoQ to Rs 423.3 crore in Q2FY25 owing to lower employee benefits and finance costs. Revenue increases by 2.8% QoQ to Rs 3,594.9 crore, attributed to improvements in the banking & financial services, technology media & telecom, and insurance segments. It features in a screener of stocks near their 52-week highs with significant volumes.

  • Oriana Power surges as it reportedly secures a contract worth Rs 375 crore from Maharashtra State Electricity Distribution Co (MSEDCL) to construct a 75-megawatt alternating current (MW AC) solar power plant.

  • Antique Stock Broking maintains its ‘Sell’ rating on Rallis India with a target price of Rs 310. The brokerage believes that a recovery in the agrochemical industry, new product launch pipeline, and a steady scale-up of the CSM (custom synthesis manufacturing) business will drive long-term growth. It also highlights the company’s premium valuations.

  • Bikaji Foods International's subsidiary, Bikaji Foods Retail, acquires a 53% stake in Hazelnut Factory Food Products for Rs 131 crore.

  • L&T Technology Services is falling as its Q2FY25 net profit misses Forecaster estimates by 4.6% despite growing 1.9% QoQ to Rs 319.6 crore. Revenue rises by 4.5% QoQ to Rs 2,637.9 crore, driven by improvements in the mobility, sustainability, and hi-tech segments. It appears in a screener of stocks with an increasing trend in non-core income.

  • Rail Vikas Nigam is rising as it secures a contract worth Rs 270 crore from Maharashtra Metro Rail Corp to construct ten elevated metro stations under Nagpur Metro Rail Project Phase-2, including seven in Reach 3A and three in Reach 4A.

  • Bajaj Auto's net profit falls by 31.4% YoY to Rs 1,385.4 crore in Q2FY25. Revenue increases by 22.2% YoY to Rs 13,247.3 crore, driven by higher sales from the automotive and financing segments. The company appears in a screener of stocks where mutual funds increased their shareholding over the past two months.

  • Nifty 50 was trading at 24,956.75 (-14.6, -0.1%), BSE Sensex was trading at 81,753.79 (252.4, 0.3%) while the broader Nifty 500 was trading at 23,639.55 (-33.6, -0.1%).

  • Market breadth is even. Of the 1,939 stocks traded today, 943 were on the uptrend, and 938 went down.

Riding High:

Largecap and midcap gainers today include MphasiS Ltd. (3,080.20, 5.8%), Central Bank of India (58.97, 2.7%) and Infosys Ltd. (1,968.10, 2.5%).

Downers:

Largecap and midcap losers today include Bajaj Auto Ltd. (10,119.45, -12.9%), Havells India Ltd. (1,805.55, -6.9%) and Oberoi Realty Ltd. (1,903.70, -6.3%).

Volume Rockets

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

Top high volume gainers on BSE included MphasiS Ltd. (3,080.20, 5.8%), Honasa Consumer Ltd. (424.25, 3.4%) and Titagarh Rail Systems Ltd. (1,170.05, 3.3%).

Top high volume losers on BSE were Bajaj Auto Ltd. (10,119.45, -12.9%), Havells India Ltd. (1,805.55, -6.9%) and Tata Communications Ltd. (1,830.05, -4.8%).

Crisil Ltd. (4,765.05, -0.5%) was trading at 23.0 times of weekly average. Chennai Petroleum Corporation Ltd. (943.40, 1.6%) and Blue Dart Express Ltd. (8,311.20, -2.1%) were trading with volumes 16.3 and 12.2 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 were underachiever and hit their 52 week lows.

Stocks touching their year highs included - Firstsource Solutions Ltd. (338.20, 0.2%), Oberoi Realty Ltd. (1,903.70, -6.3%) and Tech Mahindra Ltd. (1,699, 2.3%).

Stock making new 52 weeks lows included - Equitas Small Finance Bank Ltd. (71.24, -1.1%).

5 stocks climbed above their 200 day SMA including Sterling and Wilson Renewable Energy Ltd. (621.55, 1.6%) and Chennai Petroleum Corporation Ltd. (943.40, 1.6%). 22 stocks slipped below their 200 SMA including Bharat Heavy Electricals Ltd. (254.20, -5.7%) and Tata Communications Ltd. (1,830.05, -4.8%).

 
logo
The Baseline
17 Oct 2024
Five stocks to buy from analysts this week - October 17, 2024
By Ruchir Sankhla

1. Escorts Kubota:

Emkay upgrades its rating to ‘Buy’ for this commercial vehicles manufacturer, setting a target price of Rs 4,700, an upside potential of 21.2%. Analysts Chirag Jain, Jaimin Desai, Nandan Pradhan and Omkar Rane highlight that tractors are likely entering an upcycle from the second half of the fiscal year due to healthy monsoons and an increase in Kharif acreage, which is at the highest in four years. The recent monsoon brought about 8% more rainfall than the long-term average, supporting farm incomes.

Analysts note that while industry volumes declined by 8% YoY in FY24, prospects for a cyclical recovery appear strong. Global tractor manufacturers are also increasingly sourcing components from India, creating a potential opportunity of around $500 million for the company as it expands exports and develops new products.

Jain, Desai, Pradhan, and Rane note that the company is pursuing several initiatives across products, channels, and capacity to capture growth opportunities in both Indian and export markets. As a result, they project a revenue CAGR of 23.7% and an EBITDA CAGR of 26% over FY25-27.

2. Blue Dart Express:

Motilal Oswal reiterates a ‘Buy’ rating on Blue Dart Express with a target price of Rs 9,900, indicating an upside of 16.6%. Analysts Alok Deora and Saurabh Dugar cite the strong growth potential of this transportation logistics company, which has seen improved demand and network expansion.

Blue Dart Express has announced a price hike of 9-12%, effective January 2025, to offset inflationary costs and protect margins. Analysts mention that with the festive season approaching, the company expects higher capacity utilization for its new aircraft, leading to improved efficiency and margins. New routes like Guwahati are gaining momentum. Additionally, the company’s surface express segment, which contributes 30% of its revenues, is expected to grow faster than its air segment, supporting overall growth.

Deora and Dugar highlight that Blue Dart Express’ standalone EBITDA margin is expanding, driven by improved capacity utilization and the shift of volumes from third-party cargo to its own aircraft. They project a CAGR of 18% in net sales and 33.8% in EBITDA over FY 25-27.

3. Tata Consultancy Services:

Sharekhan maintains a ‘Buy’ rating on this IT consulting and software company with a target price of Rs 5,230 indicating a potential upside of 27.7%. Tata Consultancy Services' net profit fell by 1.1% QoQ to Rs 11,909 crore in Q2FY25 due to higher employee benefits and equipment & software license expenses. However, revenue grew by 2.2% QoQ to Rs 64,988 crore, supported by improvements in the banking, financial services & insurance (BFSI), manufacturing, consumer, and life sciences & healthcare segments.

Analysts note that, energy & utilities grew 7%, while manufacturing rose 5.3% YoY. However, communication & media fell by 10.3% and technology by 1.9%. Analysts highlight that the order book stood at $8.6 billion, with North America contributing $4.2 billion. Growth markets like India surged by 95.2%, while North America saw a 2.1% decline.

Analysts mention that the easing cycle of US Federal Reserve rate cuts and stable macro data, supports a strong growth recovery outlook for the IT sector and TCS. They project a CAGR of 8.2% in sales and 10.3% in profit after tax over FY 25-27.

4. Narayana Hrudayalaya:

ICICI Direct maintains a ‘Buy’ rating on this hospitals player with a target price of Rs 1,485, indicating a potential upside of 15.3%. Despite a slowdown in recent quarters, the company showed signs of recovery in India during Q1FY25, with revenue improving by 8% YoY to Rs 1,341 crore, driven by a 10% growth in India, reaching Rs 1,086 crore. However, growth in the Cayman Islands (a UK overseas territory) was limited, with revenue rising by 5% to Rs 267 crore. The average revenue per occupied bed (ARPOB) for Indian hospitals reached Rs 41,370 during the quarter, reflecting an 11% YoY increase.

Analysts Siddhant Khandekar and Shubh Mehta are upbeat about Narayana Hrudayalaya’s plans for capital expenditure of Rs 3,000 crore over the next 2-3 years, focusing on cities like Bengaluru and Kolkata where it has established strong brand loyalty. They said, "We believe the company is well-positioned to handle the impact on its balance sheet, despite negative free cash flow in FY25-26, as its margins and return ratios are strong."

The company has seen a significant reduction in losses from its new hospitals, which has positively impacted margins. Additionally, a new hospital in the Cayman Islands is set to commence operations in H2FY25. Khandekar and Mehta project a revenue CAGR of 10.2% and a net profit CAGR of 7.6% for FY25-26.

5. Eureka Forbes:

ICICI Securities initiates a ‘Buy’ rating on this consumer electronics company with a target price of Rs 660, indicating an upside of 6.9%. Analysts Aniruddha Joshi and Manoj Menon highlight that Eureka Forbes’ planned phase-1 transformation, focused on expanding its distribution network, is progressing as expected. The company’s investments in this area have started delivering positive results and are expected to drive growth in FY 25-26. Its service network has expanded to 19.5K pin codes in FY24 from 10.5K in FY22, growing at a CAGR of 36.3%.

Joshi and Menon are optimistic about the phase-2 transformation, which is set to revolve around improving the service business. Eureka plans to improve customer service experience through better technology and higher service quality. Its digital-based complaint resolution system has enabled the company to achieve a 33% reduction in quality-related complaints during FY24.

Eureka is also investing heavily to improve its market penetration in India's water purifier industry (currently 6%) by launching affordable products, increasing media campaigns, and expanding its distribution network to attract first-time buyers. The analysts also believe that the company’s investment in the distribution network will drive growth in FY25-26.

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

(You can find all analyst picks here)

 
Trendlyne Marketwatch
Trendlyne Marketwatch
16 Oct 2024
Market closes lower, HSCL's net profit grows 34.7% to Rs 135.4 crore in Q2FY25
By Trendlyne Analysis

Nifty 50 closed at 24,971.30 (-86.1, -0.3%) , BSE Sensex closed at 81,501.36 (-318.8, -0.4%) while the broader Nifty 500 closed at 23,673.15 (-62.6, -0.3%). Market breadth is even. Of the 2,307 stocks traded today, 1,176 were on the uptrend, and 1,097 went down.

Indian indices closed in the red, with the benchmark Nifty 50 index closing at 24,971.3 points.  The Indian volatility index, Nifty VIX, rose 0.4% and closed at around 13.1 points. Hyundai Motor India’s Rs 27,870.1 crore IPO received bids for 0.2X the available 10 crore shares on offer on the second day of bidding. The retail investor quota got bids for 0.3X the available 4.9 crore shares.

Nifty Midcap 100 closed lower, while Nifty Smallcap 100 closed flat.  Nifty FMCG and Nifty Consumer Durables closed in the red. According to Trendlyne’s sector dashboard, Forest Materials emerged as the best-performing sector of the day, with a rise of 2.9%.

European indices traded mixed. Major Asian indices closed mixed. US index futures traded mixed, indicating a cautious start to the trading session. Stellantis announces plans to recall over 20K hybrid crossover SUVs in the US due to concerns over the brake pedal.

  • Relative strength index (RSI) indicates that stocks like Ipca Laboratories, Usha Martin, and Hitachi Energy India are in the overbought zone.

  • Himadri Speciality Chemical is rising as its net profit grows 34.7% YoY to Rs 135.4 crore in Q2FY25. Revenue increases by 13.4% YoY to Rs 1,150.5 crore, driven by higher sales from the carbon materials and chemicals segment. The company appears in a screener of stocks where mutual funds increased their shareholding over the past two months.

  • Ugro Capital is rising as it secures a loan worth $40 million (approx. Rs 330 crore) from the United States International Development Finance Corp (US DFC). The lender will use this loan to invest in small businesses.

  • Wockhardt rises to hit its new 52-week high of Rs 1,126.5 as it files for its fast-acting insulin analog, Aspart injection, with the Drug Controller General of India. The insulin will be available in cartridges, vials, and prefilled disposable pens for diabetes management.

  • Macquarie suggests that Swiggy, gearing up for its IPO, is four to six quarters behind its competitor Zomato. It notes that Swiggy's gross order value (GOV) is about 26.5% lower than Zomato's. Swiggy reported a GOV of $820 million (Rs 6,800 crore) in Q1FY25, compared to Zomato's $1,116 million (Rs 9,300 crore) during the same period in the food delivery sector. In addition, Swiggy has a monthly transacting user base of 14 million, while Zomato leads with 20 million users.

  • Motilal Oswal maintains its 'Buy' call on HCL Technologies with a higher target price of Rs 2,300 per share. This indicates a potential upside of 23.1%. The brokerage believes the company's investments in next-gen platforms will help improve client expenses. It expects the firm's revenue to grow at a CAGR of 11.9% over FY25-27.

  • HDFC Life Insurance rises as its net profit grows by 14.8% YoY to Rs 433 crore in Q2FY25. Revenue increases by 23.8% YoY to Rs 28,489.3 crore, owing to improvements in annual premium equivalent (APE) and new business premium. It shows up in a screener of stocks outperforming their industry price change during the quarter.

  • Amber Enterprises India is rising as it enters a joint venture agreement with Korea Circuit to manufacture printed circuit boards (PCBs) in India. Amber, via its subsidiary IL JIN Electronics, will hold a 70% stake, aiming to meet India's growing electronics demand.

  • Nidhu Saxena, MD & CEO of Bank of Maharashtra, says that the cost of deposits has increased by 37 bps YoY. He notes the improved traction in CASA deposits and highlights the bank’s NIM (net interest margin) guidance of 3.7-3.9%.

  • South Indian Bank rises sharply as its net profit grows 18.2% YoY to Rs 324.7 crore in Q2FY25. Revenue increases 12.9% YoY to Rs 2,804.2 crore during the quarter. The bank's asset quality improves as its gross and net NPAs decline by 56 bps YoY and 39 bps YoY, respectively. It shows up in a screener of stocks with increasing revenue for the past eight quarters.

  • Ceigall India emerges as the lowest bidder for a Rs 207 crore project from the State Highway Authority of Jharkhand. The project involves constructing a four-lane elevated road from near Sahajanand Chowk to near Judge Colony in Ranchi.

  • Ashoka Buildon is rising as it bags an order worth Rs 1,126.6 crore from Brihanmumbai Municipal Corporation (BMC) to construct a flyover in Sion, Mumbai.

  • Waaree Energies sets its IPO price band at Rs 1,427-1,503 per share. The issue size is Rs 4,321.4 crore, with a fresh issue worth Rs 3,600 crore and an offer for sale of around Rs 721.4 crore. The issue opens on October 21.

  • Akums Drugs & Pharmaceuticals is rising as it enters a license & distribution agreement with Triple Hair. As per the agreement, Akums Drugs will receive exclusive rights to develop and market products recently innovated by Triple Hair in India.

  • Cochin Shipyard falls sharply as the central government announces plans to sell a 5% stake worth Rs 2,026 crore through an offer for sale at Rs 1,540 per share. The offer includes a base sale of 2.5%, with an option to sell an additional 2.5%.

  • Godrej Properties is rising as it emerges as the highest bidder for three adjoining plots intended for a group housing project in Sector 5-A, Kharghar. The plots cover 6.5 acres and offer a development potential of 2 million square feet. The estimated total revenue potential is Rs 3,500 crore.

  • Reports indicate that Ola Electric has engaged EY India for a project focused on addressing after-sales issues and customer complaints. This initiative follows growing dissatisfaction among customers and a government notice regarding consumer rights violations. EY India is expected to help improve operations, enhance spare parts management, and strengthen customer support in regions with a few service centres.

  • Ambuja Cements falls as nearly 1.5 crore shares (0.6% stake), amounting to Rs 909 crore, reportedly change hands in a block deal at an average price of Rs 586 per share.

  • Larsen & Toubro's heavy civil infrastructure arm bags an order worth Rs 1,000-2,500 crore from Uttar Pradesh Metro Rail Corp (UPMRCL) to design and construct line-2 of Agra Metro Phase-1. The scope of work includes the construction of a 15.1 km elevated viaduct, 14 stations, and a 2.6 km depot.

  • PNC Infratech surges as it secures two orders worth Rs 4,630 crore from Maharashtra State Road Development Corp (MSRDC). The first project involves the construction of the Pune Ring Road, spanning 13.8 km from Indori to Chimbali, valued at Rs 2,268 crore. The second project includes building a 28.9 km expressway connector from Jalna to Nanded, valued at Rs 2,362 crore.

  • Nomura downgrades HDFC Life Insurance Co to a 'Neutral' rating with a target price of Rs 735. The brokerage cites sustained growth and weak margins as key reasons. It believes the company will need to deliver a VNB (value of new business ) margin of approximately 25.4% in H2FY25 to achieve at least 15% YoY growth in VNB in FY25, which seems challenging. Nomura also notes the current valuation adequately reflects the company's positive aspects.

  • Rallis India surges as its net profit beats Forecaster estimates by 32.3% after growing 19.5% YoY to Rs 98 crore in Q2FY25, owing to lower raw material costs. Revenue rises by 12.1% YoY to Rs 938 crore due to an increase in the crop care and seeds segments. It features in a screener of stocks with negative to positive growth in sales and profit with strong price momentum.

  • RailTel Corp of India is rising as it receives a work order worth Rs 79.8 crore from the Maharashtra Housing and Area Development Authority (MHADA). The order involves selecting a service provider to set up, migrate, and manage MHADA's cloud data centre and disaster recovery site.

  • KEI Industries is falling as its Q2FY25 net profit misses Forecaster estimates by 6.4% despite growing by 10.4% YoY to Rs 154.8 crore, helped by inventory destocking. Revenue increases by 17.5% YoY to Rs 2,296.6 crore, driven by the cables & wires and engineering, procurement & construction (EPC) projects segments. The company's board approves a qualified institutional placement (QIP) of equity shares worth Rs 2,000 crore.

  • G R Infraprojects is rising as it secures a contract worth Rs 1,885.6 crore from Maharashtra State Road Development Corporation (MSRDC) to build a section of the Pune Ring Road in Pune District. The project connects Kalyan/Rathwade village to Shivare/Kusgaon village and will be completed on an engineering, procurement, and construction (EPC) basis.

  • Nifty 50 was trading at 25,012.45 (-44.9, -0.2%) , BSE Sensex was trading at 81,663.57 (-156.6, -0.2%) while the broader Nifty 500 was trading at 23,717.40 (-18.3, -0.1%)

  • Market breadth is in the green. Of the 1,908 stocks traded today, 1,111 were on the uptick, and 752 were down.

Riding High:

Largecap and midcap gainers today include HDFC Asset Management Company Ltd. (4,827.90, 6.0%), Tube Investments of India Ltd. (4,510.80, 4.3%) and Voltas Ltd. (1,881.30, 3.9%).

Downers:

Largecap and midcap losers today include Oil India Ltd. (527.20, -5.8%), Polycab India Ltd. (7,181.50, -4.1%) and Trent Ltd. (7,805.80, -3.9%).

Volume Rockets

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

Top high volume gainers on BSE included Aditya Birla Sun Life AMC Ltd. (779.05, 11.6%), UTI Asset Management Company Ltd. (1,329, 7.8%) and Amber Enterprises India Ltd. (5,491.65, 6.3%).

Top high volume losers on BSE were KEI Industries Ltd. (4,384.80, -6.5%), Oil India Ltd. (527.20, -5.8%) and Zydus Lifesciences Ltd. (1,020.10, -3.6%).

Nuvoco Vistas Corporation Ltd. (362.55, 3.8%) was trading at 43.3 times of weekly average. DCM Shriram Ltd. (1,121.75, 6.0%) and Grindwell Norton Ltd. (2,511.35, 1.8%) were trading with volumes 9.3 and 9.2 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

19 stocks made 52 week highs, while 3 stocks were underachievers and hit their 52 week lows.

Stocks touching their year highs included - HCL Technologies Ltd. (1,865.25, -0.3%), Motilal Oswal Financial Services Ltd. (962.05, 4.1%) and Multi Commodity Exchange of India Ltd. (6,428.30, -1.3%).

Stocks making new 52 weeks lows included - CreditAccess Grameen Ltd. (1,024.10, -2.9%) and CSB Bank Ltd. (309.30, 1%).

14 stocks climbed above their 200 day SMA including PNC Infratech Ltd. (466, 4.4%) and Chennai Petroleum Corporation Ltd. (928.95, 4.1%). 12 stocks slipped below their 200 SMA including ZF Commercial Vehicle Control Systems India Ltd. (14,900, -4.9%) and Bata India Ltd. (1,422, -2.0%).

 
logo
The Baseline
15 Oct 2024
By Aditi Priya

The Indian stock market has been highly volatile over the past month, with the Nifty 50 slipping approximately 1% while struggling to stay above the 25,000 mark. This was mainly due to the geopolitical tensions in the Middle East, uncertainty around US interest rate cuts and expensive valuations. Additionally, the recent stimulus measures in China have drawn global investor attention, leading to a shift in focus from Indian equities to Chinese markets, further contributing to the pressure on Indian stocks. 

Many high-beta stocks, known for their greater volatility, saw negative returns over the past month. Beta is a measure of a stock's volatility in relation to a benchmark index like the Nifty50 or the BSE Sensex. A beta of 1 means the stock moves with the market, while a beta higher than 1 indicates greater volatility, implying higher risk. Stocks with a beta lower than 1 are less volatile than the market. High beta stocks can be good investments for traders who don’t mind risk and a little bit of worry with their breakfast, since these can deliver higher returns. 

In this edition of Chart of the Week, we analyze the top eight companies with the highest beta within the Nifty500 universe, over the past month and past year. These stocks have been impacted by a variety of factors, ranging from market expansion to financial performance.

Kaynes Technology leads high-beta stocks with 20% monthly gains

Kaynes Technology has the highest beta value of 2.8 over the past month and 1.4 over the past year with its stock posting 20% gains in the past month. The major reason behind this is that the company is expanding into new markets, including automotive, industrial, and medical electronics. Kaynes recently opened a manufacturing facility in Hyderabad to enhance its global competitiveness. Additionally, the company secured approval to build an Outsourced Semiconductor Assembly and Test (OSAT) facility in Sanand, Gujarat, which will produce 6.3 million chips per day for various applications. On a YoY basis, Kaynes has posted impressive gains of 110.9%.

The next highest beta stock is engineering consultancy company, Engineers India Ltd. with a beta value of 2.5 over the past month and 2 over the past year. The stock has fallen almost 3% over the past month. The share price of the company has been falling after it posted weak results in Q1FY25 with falling net profit on YoY and QoQ basis on August 9, 2024. On a YoY basis, Engineers India has posted gains of 44.8% with the beta value of 2.

HFCL, a leading player in the telecommunication equipment industry, also makes the list, posting 9.1% losses over the past month with the beta value of 2.4. Despite this, the stock is still performing well over the past year, posting gains of over 93% with the one year beta value of 2.

Construction stocks see short-term decline, but long-term growth looks strong

Construction and engineering companiesSterling and Wilson Renewable Energy and Rites Ltd. have also witnessed volatility in the past month with beta values at 2.2 and 2.3, respectively. Both companies have seen a fall in their share price over the past month. However, one-year returns of these companies have increased by a significant amount.

Housing and Urban Development Corp (HUDCO), a housing finance company, has also been very volatile in the past month with the one month beta value of 2.3 and one year beta value of nearly 2. Weak Q1FY25 results with a 27.4% fall in net profit has caused the share price to fall. However, the stock has performed well over the past year, posting gains of over 158%.

Electric utilities company Inox Wind has been one of the top performers among high-beta stocks, delivering remarkable gains of 321.6% over the past year with the beta value of the stock being nearly 1.5. However, in the past month, the stock has experienced notable volatility, with a beta value rising to 2.2, and its price declined by 6.2%. This drop followed a significant block trade in which approximately 2.75 crore shares, or 5% of the company's total equity, were traded on the exchanges. The trade occurred as Inox Wind's promoter, Inox Wind Energy Ltd. (IWEL), planned to sell up to 5% of the company's equity in a block deal.

In summary, while these stocks have high-risk profiles, they also offer the potential for significant returns, attracting investors willing to brave the volatility. High-beta stocks remain a popular choice for traders seeking opportunities to capitalize on short-term price fluctuations in a volatile market. This data reveals that while some high-beta stocks have managed to outperform, others have succumbed to the market’s turbulence, underscoring the dual nature of high-risk investments.

 
Trendlyne Marketwatch
Trendlyne Marketwatch
15 Oct 2024
Market closes lower, Newgen Software's profit surges 47.8% QoQ to Rs 70.3 crore in Q2FY25
By Trendlyne Analysis

Nifty 50 closed at 25,057.35 (-70.6, -0.3%) , BSE Sensex closed at 81,820.12 (-152.9, -0.2%) while the broader Nifty 500 closed at 23,735.70 (8.7, 0.0%). Market breadth is neutral. Of the 2,310 stocks traded today, 1,120 showed gains, and 1,154 showed losses.

Indian indices closed in the red, with the benchmark Nifty 50 index closing at 25,057.4 points. The Indian volatility index, Nifty VIX, rose 0.1% and closed at 13 points. Reliance Industries’ net profit declined by 4.8% YoY to Rs 16,563 crore in Q2FY25. The stock declined by over 2% post results.

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

Asian indices closed in the red while European indices are trading mixed. US index futures traded in the red, indicating a cautious start to the trading session. Brent crude oil futures are trading in the red. Nvidia mentioned that its customers are still purchasing its current range of chips. However, it also noted that the production of its next-generation Blackwell chips has been postponed until the fourth quarter.

  • Money flow index (MFI) indicates that stocks like Usha Martin, Hitachi Energy India, Ipca Laboratories, and National Aluminium are in the overbought zone.

  • Newgen Software Technologies' net profit surges by 47.8% QoQ to Rs 70.3 crore in Q2FY25. Revenue grows by 12.6% QoQ to Rs 379.7 crore, driven by improvements in the Indian, Europe, the Middle East and Africa (EMEA), Asia-Pacific (APAC), and USA markets. It features in a screener of stocks with growth in quarterly net profit and profit margin.

  • Bank of Maharashtra is rising as its net profit surges 44.2% YoY to Rs 1,326.8 crore in Q2FY25. Revenue grows 18.7% YoY to Rs 6,017.4 crore, driven by improvements in the treasury operations, corporate, and retail banking segments. The bank's asset quality improves as its gross and net NPAs contract by 35 bps and 3 bps YoY, respectively, during the quarter.

  • PVR Inox is rising as its revenue beats Forecaster estimates by 4.8%, despite declining 19% YoY to Rs 1,622 crore in Q2FY25. The company reports a net loss of 11.8 crore during the quarter, compared to a profit of Rs 166.3 crore in Q2FY24. It appears in a screener of stocks where FIIs and institutions have increased their shareholding.

  • Economists believe the Reserve Bank of India is unlikely to cut interest rates in December after September's inflation hit a nine-month high. Goldman Sachs Group and Deutsche Bank AG still anticipate an easing by the RBI in December but acknowledge the likelihood has increased that any potential cut may be delayed until next year.

  • RPP Infra Projects surges to its 5% upper circuit as it secures an order worth Rs 217.6 crore from the Chief Engineer & Project Director (EAP), Mumbai. The project involves improving the Kothore Digar Satana Malegaon Chalisgaon Pachora Shendurni Pahur Wakadi Road in Jalgaon District, Maharashtra.

  • Motilal Oswal upgrades Ipca Laboratories to 'Buy' from 'Neutral' with a higher target price of Rs 1,950 per share. This indicates a potential upside of 15%. The brokerage is positive on the stock, driven by a strong domestic brand franchise, improved US FDA compliance, US business revival, and synergic benefits of the Unichem acquisition. It expects the company's revenue to grow at a CAGR of 16.1% over FY25-27.

  • Exxaro Tiles is rising as its board of directors approves the sub-division/split of one equity share of the company having a face value of Rs 10 each, into ten equity shares with a face value of Rs 1 each.

  • Ahead of Nestle India’s earnings on Thursday, brokerages project net profit growth of 7-8% YoY for Q2FY25. Revenue is expected to grow by 5-7% YoY driven by price hikes taken by the company and believes sales growth momentum will continue.

  • BEML secures a contract worth Rs 866.9 crore from Integral Coach Factory (ICF), Chennai, to design, manufacture, and commission two high-speed trainsets, each comprising eight cars worth Rs 27.9 crore.

  • IFGL Refractories is rising as it forms a 51:49 joint venture (JV) with Seychelles-based Marvels International Group (MIG) to manufacture bricks in India.

  • KPI Green Energy is rising as it signs power purchase agreements (PPAs) with Gujarat Urja Vikas Nigam (GUVNL) for 620 megawatts alternating current (MWAC) of renewable energy projects. This includes a 250 MWAC grid-connected solar photovoltaic power project and a 370 MWAC grid-connected hybrid renewable energy project.

  • HSBC maintains its ‘Buy’ rating on Maruti Suzuki with a target price of Rs 14,500. The brokerage notes higher inventory levels amid a decline in sales of cars in Q2FY25. It expects weak dispatches in Q3 but bets on new launches lined up for 2025.

  • Lyka Labs is rising as it receives approval from the Central Drugs Standard Control Organisation (CDSCO) to manufacture and market Pregabalin Gel 8% w/w, used to treat diabetic neuropathic pain.

  • Sunteck Realty rises sharply as its pre-sales grow 32.7% YoY to Rs 524 crore in Q2FY25, helped by a 24.8% YoY increase in collections to Rs 267 crore. It appears in a screener of stocks with zero promoter pledge.

  • Garuda Construction and Engineering’s shares debut on the bourses at a 10.5% premium to the issue price of Rs 95. The Rs 264.1 crore IPO received bids for 7.5 times the total shares on offer.

  • SpiceJet resolves a $23.4 million (Rs 196.7 crore) dispute with Aircastle (Ireland) Designated Activity Co and Wilmington Trust SP Services (Dublin) outside of court for a total of $5 million (Rs 42 crore). The settlement also includes agreements regarding the handling of specific aircraft engines.

  • Angel One surges as its net profit grows by 39.1% YoY to Rs 423.4 crore in Q2FY25. Revenue increases by 44.5% YoY to Rs 1,516 crore, driven by improving client base, number of orders, and average daily turnover. It shows up in a screener of stocks that have gained over 20% in the past month.

  • TD Power Systems is rising as it secures two large orders worth Rs 142 crore from two international gas engine original equipment manufacturers (OEM) to supply gas engine generators.

  • HCL Technologies rises to its all-time high of Rs 1,882.8 per share as its Q2FY25 net profit beats Forecaster estimates by 5.6% despite staying flat at Rs 4,235 crore. Revenue grows by 0.5% QoQ to Rs 29,381 crore, helped by improvements in the IT & business services, engineering & R&D services, and HCL Software segments. It appears in a screener of stocks outperforming their industries over the past month.

  • India’s CPI inflation rises to a nine-month high of 5.5% in September. Food inflation rises to 9.2%, compared to 5.7% in August. Rural inflation is up at 5.9%, while urban inflation increases to 5.1% in September.

  • JSW Infrastructure is rising as it receives a letter of intent from the Maharashtra Maritime Board to develop, operate, manage, and maintain an all-weather multipurpose port in Murbe village, Palghar District, Maharashtra, under a Public Private Partnership (PPP) model.

  • Reliance Industries is falling as its net profit declines by 4.8% YoY to Rs 16,563 crore in Q2FY25 due to higher raw materials, excise, employee benefits, and finance costs. However, revenue grows 0.7% YoY to Rs 2.4 lakh crore, driven by improvements in the oil to chemicals (O2C) and digital services segments. It features in a screener of stocks with declining net cash flow.

  • Va Tech Wabag rises to a new all-time high of Rs 1,744.2 as it secures an order worth Rs 1,000 crore from Indosol Solar. The contract covers the design, engineering, supply, installation, testing, and commissioning of a 100 MLD desalination plant for Indosol Solar's solar PV manufacturing unit in Andhra Pradesh.

  • J Kumar Infraprojects is rising as it receives a work order worth Rs 297.8 crore from the Pune Municipal Corporation to develop the Mula River from Wakad Bypass to Sangvi Bridge.

  • Nifty 50 was trading at 25,198.50 (70.6, 0.3%), BSE Sensex was trading at 82,101.86 (128.8, 0.2%) while the broader Nifty 500 was trading at 23,796.75 (69.7, 0.3%).

  • Market breadth is in the green. Of the 1,933 stocks traded today, 1,184 were gainers and 690 were losers.

Riding High:

Largecap and midcap gainers today include Hindustan Petroleum Corporation Ltd. (422.90, 4.2%), Varun Beverages Ltd. (611.05, 3.3%) and Deepak Nitrite Ltd. (2,932.60, 3.0%).

Downers:

Largecap and midcap losers today include Oil India Ltd. (559.45, -4.6%), HDFC Life Insurance Company Ltd. (714.25, -3.6%) and Bajaj Auto Ltd. (11,521.50, -3.2%).

Volume Rockets

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

Top high volume gainers on BSE included Angel One Ltd. (3,224.55, 18.4%), Motilal Oswal Financial Services Ltd. (924.45, 11.8%) and Network18 Media & Investments Ltd. (87.09, 10.1%).

Top high volume losers on BSE were Jindal Steel & Power Ltd. (968.70, -2.5%), Mahindra Holidays & Resorts India Ltd. (386.10, -1.3%) and Motherson Sumi Wiring India Ltd. (64.38, -0.9%).

Aether Industries Ltd. (937.25, -0.8%) was trading at 53.3 times of weekly average. Five-Star Business Finance Ltd. (894.75, 8.6%) and Sunteck Realty Ltd. (596.35, 7.6%) were trading with volumes 16.0 and 13.6 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

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

Stocks touching their year highs included - Divi's Laboratories Ltd. (6,106.70, -1.7%), Glenmark Pharmaceuticals Ltd. (1,804.90, -0.7%) and HCL Technologies Ltd. (1,870.10, 0.8%).

Stock making new 52 weeks lows included - CSB Bank Ltd. (306, 0.3%).

12 stocks climbed above their 200 day SMA including Angel One Ltd. (3,224.55, 18.4%) and Mastek Ltd. (2,908.25, 4.9%). 10 stocks slipped below their 200 SMA including NMDC Ltd. (232.08, -2.1%) and Tata Steel Ltd. (155.63, -1.7%).

 
Trendlyne Marketwatch
Trendlyne Marketwatch
14 Oct 2024
Market closes higher, HCC wins an order worth Rs 1,031.6 crore from MSRDC
By Trendlyne Analysis

Nifty 50 closed at 25,127.95 (163.7, 0.7%) , BSE Sensex closed at 81,973.05 (591.7, 0.7%) while the broader Nifty 500 closed at 23,727.05 (115.8, 0.5%). Market breadth is in the red. Of the 2,345 stocks traded today, 1,080 were on the uptick, and 1,224 were down.

Nifty 50 closed higher after rising in the morning session. The Indian volatility index, Nifty VIX, fell 1.7% and closed at 13 points. Wipro's board of directors scheduled to meet on October 16-17 to consider a proposal for a bonus issue.

Nifty Smallcap 100 and Nifty Midcap 100 closed in the green, taking cues from the benchmark index. Nifty Realty and BSE Realty Index 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 2.6%.

Asian indices closed in the green, except for China’s Hang Seng and FTSE China 50 index which closed in the red. European indices are trading mixed. US index futures are trading mixed, indicating a positive start to the trading session. Brent crude oil futures are trading lower as China's stimulus plans failed to inspire confidence among investors.

  • Relative strength index (RSI) indicates that stocks like Divi's Laboratories, Ipca Laboratories, and Hitachi Energy India are in the overbought zone.

  • Alok Industries falls as its net loss widens by 49.9% YoY to Rs 262.1 crore in Q2FY25, due to higher finance costs. Revenue decreases 35% YoY to Rs 898.8 crore during the quarter. It appears in a screener of stocks with book value per share deteriorating over the past two years.

  • Hindustan Construction Co is rising as it receives a letter of acceptance (LoA) worth Rs 1,031.6 crore from Maharashtra State Road Development Corporation. The project involves building a two-lane bridge over Agardanda Creek, connecting Tokekhar and Turumbadi in Raigad District, as part of the Revas-Reddi Coastal Highway (MSH-04).

  • Reports suggest that 10.4 lakh shares (0.3% equity) of Trent, amounting to Rs 846.1 crore have changed hands in a block deal.

  • Sharekhan maintains its 'Buy' call on Tata Motors with a higher target price fo Rs 1,319 per share. This indicates a potential upside of 41.9%. The brokerage believes the company's sales will improve on the back of a recovery in sales of Jaguar Land Rover in H2FY25. It expects the firm's revenue to grow at CAGR of 11.2% over FY25-26.

  • Vascon Engineers surges as it receives a letter of acceptance (LoA) worth Rs 57.2 crore from Mumbai Metro Rail Corporation, Government of Maharashtra. The LoA involves building a commercial structure at Kalbadevi (K2) on specific land parcels in the Bhuleshwar Division. The project aims to support the rehabilitation of people affected by the Metro Line 2/3 in Kalbadevi Girgaon.

  • Hathway Cable & Datacom rises sharply as its net profit grows 28.6% YoY to Rs 25.8 crore in Q2FY25. Revenue increases by 6% YoY to Rs 512.7 crore, helped by improvements in the cable television and securities trading segments. It shows up in a screener of stocks with increasing revenue for the past two quarters.

  • The Society of Indian Automobile Manufacturers (SIAM) reports a 1.4% YoY decline in overall PV sales to 3.56 lakh units in September. Two-wheeler and three-wheeler sales increase 15.8% YoY and 6.7% YoY to 20.3 lakh and 79,683 units, respectively.

  • Eraaya Lifespaces is rising as its board of directors schedules a meeting for October 19 to consider a proposal for a stock split.

  • PNC Infratech is rising as it receives an order worth Rs 2,039.6 crore from the City & Industrial Development Corporation of Maharashtra (CIDCO) to develop over 20-meter-wide roads, build major and minor structures, and complete electrical works.

  • Oil & Natural Gas Corp reportedly plans to set up mini-LNG plants to transport natural gas from wells in areas without pipelines. The company plans to set up these plants in five locations in Andhra Pradesh, Jharkhand, and Gujarat.

  • India’s WPI inflation rises to 1.8% in September from 1.3% in August, driven by a sharp increase in the prices of food items. Food articles inflation surged to 11.5% during the month, up from 3.1% in August.

  • Adani Energy Solutions enters an agreement with Kenya Electricity Transmission Co (Ketraco) to develop, finance, and manage transmission infrastructure in Kenya. The project is estimated to cost $736 million and involves constructing transmission lines and substations.

  • Sudarshan Chemical Industries' board of directors schedules a meeting on Wednesday to consider raising funds by issuing equity shares through a preferential issue, qualified institutional placement (QIP), rights issue, or other modes.

  • Valor Estate secures a letter of acceptance from the Municipal Corporation of Greater Mumbai (MCGM) to construct 13,374 affordable housing units under the project-affected persons (PAP) Scheme. The project has a completion timeline of 60 months.

  • Mutual funds increase their stake in One97 Communications (Paytm) by 15% in Q2FY25, compared to 6.8% in Q1FY25. Mutual funds raised their holdings in the company significantly between July and September, as it achieved a 70% return.

  • KR Choksey retains its 'Accumulate' call on Tata Consultancy Services with a target price of Rs 4,587 per share. This indicates a potential upside of 11.1%. The brokerage expects the company's revenue to grow, driven by expectations of increased discretionary spending due to interest rate cuts. It expects the firm's revenue to grow at a CAGR of 8.5% over FY25-27.

  • Gensol Engineering surges as it secures an order worth AED 81.6 million (Rs 186 crore) from UAE’s leading sustainable development and clean energy development company. The project involves designing, constructing, and providing long-term operation and maintenance for 23 megawatt peak (MWp) rooftop solar photovoltaic (PV) systems in Dubai.

  • JSW Energy is rising as it enters an energy storage facility agreement (ESFA) with the Maharashtra State Electricity Distribution Company (MSEDCL) to procure 1,500 MW or 12,000 megawatt-hours (MWh) of pumped hydro energy storage. As per the agreement, JSW will supply energy storage capacity for 40 years at a fixed capacity charge of Rs 84.7 lakh per MW per annum.

  • JP Morgan initiates coverage on Larsen & Toubro with an ‘Overweight’ rating and target price of Rs 4,360. The brokerage believes the company is well-positioned to navigate the capex cycle in India and the Middle East. It also highlights the attractive valuations and strong earnings growth.

  • Wipro rises as its board of directors schedules to meet on October 16-17 to consider a proposal for a bonus issue.

  • Ashoka Buildcon is rising as it bags orders worth Rs 2,000 crore from Maharashtra State Road Development Corp (MSRDCL) for the engineering, procurement, and construction work of two bridges in Ratnagiri, Maharashtra.

  • Premier Energies is rising as its subsidiaries, Premier Energies International and Premier Energies Photovoltaic, receive orders worth Rs 765 crore from various customers to supply solar PV cells and modules.

  • Avenue Supermarts falls sharply as its Q2FY25 net profit misses Forecaster estimates by 4.6% despite growing 5.8% YoY to Rs 659.6 crore, helped by inventory destocking. Revenue increases by 14.3% YoY to Rs 14,478 crore during the quarter. It shows up in a screener of stocks where mutual funds have decreased their shareholding in the last quarter.

  • Nifty 50 was trading at 25,055.95 (91.7, 0.4%), BSE Sensex was trading at 81,647.90 (266.5, 0.3%) while the broader Nifty 500 was trading at 23,686.65 (75.4, 0.3%).

  • Market breadth is ticking up strongly. Of the 2,009 stocks traded today, 1,301 showed gains, and 642 showed losses.

Riding High:

Largecap and midcap gainers today include Federal Bank Ltd. (196.74, 4.9%), Oberoi Realty Ltd. (1,997.80, 4.1%) and Wipro Ltd. (549.55, 4.0%).

Downers:

Largecap and midcap losers today include Avenue Supermarts Ltd. (4,183.60, -8.5%), Bandhan Bank Ltd. (200.06, -4.9%) and Colgate-Palmolive (India) Ltd. (3,522.45, -4.5%).

Volume Rockets

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

Top high volume gainers on BSE included Aptus Value Housing Finance India Ltd. (389.65, 8%), Esab India Ltd. (6,463, 5.1%) and Oberoi Realty Ltd. (1,997.80, 4.1%).

Top high volume losers on BSE were Avenue Supermarts Ltd. (4,183.60, -8.5%), Colgate-Palmolive (India) Ltd. (3,522.45, -4.5%) and Procter & Gamble Hygiene & Healthcare Ltd. (16,526.85, -0.7%).

Poly Medicure Ltd. (2,387.50, 1.9%) was trading at 13.7 times of weekly average. KSB Ltd. (914.15, 0.9%) and JK Cement Ltd. (4,310, 1.7%) were trading with volumes 6.6 and 6.4 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

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

Stocks touching their year highs included - Divi's Laboratories Ltd. (6,207, 1.1%), Glenmark Pharmaceuticals Ltd. (1,818.15, 1.5%) and HCL Technologies Ltd. (1,855.90, 0.9%).

Stocks making new 52 weeks lows included - CreditAccess Grameen Ltd. (1,055, -1.9%) and CSB Bank Ltd. (305.90, -0.5%).

6 stocks climbed above their 200 day SMA including Narayana Hrudayalaya Ltd. (1,268.80, 3.9%) and Mastek Ltd. (2,776, 2.4%). 12 stocks slipped below their 200 SMA including Avenue Supermarts Ltd. (4,183.60, -8.5%) and Bandhan Bank Ltd. (200.06, -4.9%).