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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Riding High:

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

Downers:

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

Movers and Shakers

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

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

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

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

BSE 500: highs, lows and moving averages

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

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

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

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

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

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

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

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

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

In this week's Analyticks:

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

Screener: Multibagger stocks which are rising in the past quarter

Let's take a closer look.

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

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

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

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

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

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

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

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

Screener: Multibagger stocks which are rising in the past quarter

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

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

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

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

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

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

You can find some popular screeners here.

 
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The Baseline
08 Nov 2024
Five Interesting Stocks Today - November 08, 2024

1. Larsen & Toubro:

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

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

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

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

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

2. Apollo Hospitals Enterprise: 

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

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

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

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

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

3. ABB India:

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

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

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

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

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

4. Cipla:

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

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

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

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

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

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

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

5. Vedanta:

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

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

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

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

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

 
Trendlyne Marketwatch
Trendlyne Marketwatch
08 Nov 2024
Market closes lower, Vedanta reports a net profit of Rs 4,352 crore in Q2FY25

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Riding High:

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

Downers:

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

Movers and Shakers

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

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

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

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

BSE 500: highs, lows and moving averages

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Riding High:

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

Downers:

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

Movers and Shakers

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

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

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

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

BSE 500: highs, lows and moving averages

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Riding High:

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

Downers:

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

Movers and Shakers

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

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

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

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

BSE 500: highs, lows and moving averages

13 stocks overperformed with 52 week highs,

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

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

 
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The Baseline
05 Nov 2024
By Satyam Kumar

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

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

Banks shine in Q2, wealth management & related firms outperform

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

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

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

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

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

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

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

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

OMCs miss estimates on all fronts

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Riding High:

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

Downers:

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

Crowd Puller Stocks

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

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

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

Chemplast Sanmar Ltd. (484.70, 2%) was trading at 21.6 times of weekly average. Procter & Gamble Health Ltd. (5,597, 5.9%) and R R Kabel Ltd. (1,515.55, -0.2%) were trading with volumes 20.1 and 11.4 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

6 stocks took off, crossing 52 week highs, while 1 stock hit their 52 week lows.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Riding High:

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

Downers:

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

Volume Rockets

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

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

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

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

BSE 500: highs, lows and moving averages

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

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

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

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

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

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

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

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

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

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

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

In this week's Analyticks:

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

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

Banking and tech are the front-benchers this quarter

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

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

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

Average revenues jump, but companies struggle with margins and profitability

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

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

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

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

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

Banking & finance stocks have the highest positive surprise in Q2FY25

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

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

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

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

You can find some popular screeners here.