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Trendlyne Marketwatch
Trendlyne Marketwatch
11 Sep 2024, 03:56PM
Market closes lower, Bharat Electronics bags multiple orders worth Rs 1,155 crore
By Trendlyne Analysis

Nifty 50 closed at 24,918.45 (-122.7, -0.5%) , BSE Sensex closed at 81,523.16 (-398.1, -0.5%) while the broader Nifty 500 closed at 23,531.25 (-112.4, -0.5%). Market breadth is in the red. Of the 2,259 stocks traded today, 753 showed gains, and 1,477 showed losses.

Indian indices extended their losses in the afternoon session to close lower. The Indian volatility index, Nifty VIX, rose 2% and closed at 13.6 points. Bharat Electronics closed higher as it secured multiple orders worth Rs 1,155 crore from Cochin Shipyard and other clients for a complex navigational system for ships, thermal imagers, and other equipment.

Nifty Midcap 100 and Nifty Smallcap 100 closed in the red. Nifty Oil & Gas and Nifty PSU Bank closed lower. According to Trendlyne’s sector dashboard, Hardware Technology & Equipment emerged as the best-performing sector of the day, with a rise of 1.9%.

European indices traded mixed. Major Asian indices closed in the red. US index futures traded lower, indicating a cautious start to the trading session in anticipation of the country’s inflation data. Gamestop Corp fell sharply in pre-opening as its board issued new shares.

  • Relative strength index (RSI) indicates that stocks like Godrej Industries, Glenmark Life Sciences, Eris Lifesciences, and Jai Balaji Industries are in the overbought zone.

  • Gravita India's step-down subsidiary Gravita Netherlands BV signs a memorandum of understanding (MoU) to acquire a waste tyre recycling plant with a capacity of 17,000 metric tonnes per annum (mtpa) in Romania.

  • Bharat Electronics rises as it secures multiple orders worth Rs 1,155 crore from Cochin Shipyard and other clients for a multi-function radar in X band, navigational complex system for ships, thermal imagers, and other equipment.

  • According to a report from Nasscom and consulting firm Zinnov, India had over 1,700 global capability centers (GCCs) in FY24, with their export revenue increasing by over 40% to $65 billion. The rapidly expanding sector has employed more than 19 million people during this period. In FY23, GCC revenue was $46 billion, up 11.4% YoY, with an employee count of around 1.7 million.

  • Infibeam Avenues falls sharply as it turns ex-date for the spinoff of its digital marketing arm, Odigma Consultancy Services. The company sets September 11 as the record date for issuing shares of Odigma Consultancy.

  • Strides Pharma Science secures approval from its shareholders and creditors, along with OneSource and SteriScience. This allows the creation of OneSource Specialty Pharma CDMO by combining Strides' soft gelatin capsules business, SteriScience's sterile injectables, and OneSource's Biologics drug device business.

  • Aurionpro Solutions bags a five-year contract worth Rs 200 crore from the Panvel Municipal Corp (PMC), Maharashtra, to upgrade the city's security infrastructure. The company will install advanced surveillance and smart city technologies and set up data centers, control command centers, and video analytics capabilities to enable real-time monitoring and faster response times.

  • Oil companies such as ONGC and Oil India are declining as recent global developments have led to ample supplies and weaker demand prospects, pushing Brent oil prices below $70 per barrel. Although upstream earnings are currently affected, analysts at Prabhudas Lilladher predict oil prices will rebound to $75-80 per barrel in the near term, despite OPEC+ delaying its planned production increase.

  • JSW Infrastructure rises sharply as it reportedly plans to issue shares worth Rs 5,000 crore through a qualified institutional placement (QIP) to meet capex requirements.

  • Astra Microwave Products rises sharply as it signs a memorandum of understanding (MoU) with Premier Explosives to develop and sell products jointly.

  • Inox India rises as it secures patent rights for its cold storage unit. The patent, titled "Cryogenic Liquid Base Variable Temperature Cold Storage Unit and Method," is granted by the Patents Office, Government of India.

  • Dinesh Nolkha, Managing Director of Nitin Spinners, reiterates the volume growth guidance of 12-13% in FY25. However, realisations are expected to remain flat in the next six months due to changing trends in cotton prices. Nolkha highlights that international cotton prices are falling, while domestic cotton prices are rising due to heavy rains and reduced irrigated areas.

  • Aurobindo Pharma rises as its subsidiary, Eugia Pharma Specialities, receives US FDA approval for its Lidocaine Hydrochloride injection, a local anesthetic drug.

  • Ramco Systems rises to its 52-week high of Rs 455 as it launches version 6.0 of its aviation software. The new version enhances maintenance & engineering (M&E) and maintenance, repair, and overhaul (MRO) operations with AI insights, automation, and improved integration.

  • Century Textiles & Industries rises sharply to its all-time high of Rs 2,689 after it acquires ownership rights of a 10-acre land parcel in Mumbai for Rs 1,100 crore from Wadia Group chairman Nusli Wadia. The land, with a booking value potential of Rs 14,000 crore, will be developed by the company's subsidiary, Birla Estates.

  • Morgan Stanley maintains its 'Overweight' rating on Suzlon Energy with a target price of Rs 73. The brokerage notes a major achievement for the company with a 1.17 GW order win from NTPC. This PSU contract is a significant breakthrough, as it was previously ineligible to bid due to its negative net worth.

  • Sharekhan retains its 'Buy' call on Persistent Systems with a higher target price of Rs 6,200 per share. This indicates a potential upside of 17.1%. The brokerage believes that the company is well-placed for further growth in FY25 owing to strong order booking and deal pipeline across all its verticals. It expects the company's revenue to grow at a CAGR of 18.1% over FY25-27.

  • Windsor Machines rises after its promoter, Castle Equipments, sells its entire 53.9% stake (3.5 crore shares) to Plutus Investments and Holding for Rs 350 crore.

  • Rajoo Engineers signs a $15 million (approx Rs 126 crore) agreement to develop innovative plastic extrusion machinery for an overseas customer. This project is expected to advance packaging technology and extend product shelf life.

  • Spain's Zelestra(an energy company) aims to invest $5 billion (Rs 41,978.9 crore) in India to develop 10GW of wind and solar power by the end of the decade, doubling its earlier 5GW target for 2026. Backed by EQT, the company may also explore opportunities in India's commercial and industrial sectors, as indicated by its CEO, Leo Moreno.

  • Tinna Rubber and Infrastructure signs a joint venture (JV) agreement with Lionshare Holdings and Mbodla Investments in Johannesburg, South Africa. This partnership focuses on acquiring and recycling used tyres, either in India or by setting up a recycling plant in South Africa.

  • CESC's subsidiary, Purvah Green Power, plans to set up a 300 MW solar photovoltaic (PV) power project in India. This includes a 150 MW project connected to the inter-state transmission system (ISTS) under competitive bidding, with an extra 150 MW through a greenshoe option.

  • Reliance Industries' subsidiary, Reliance Retail Ventures, forms a 50:50 joint venture (JV) with Delta Galil to set up an apparel innovation platform in India.

  • Gensol Engineering, in partnership with Matrix Gas & Renewables, secures a project to establish a Green Hydrogen Valley in Pune on a build, own, and operate (BOO) basis. The project will supply green hydrogen to the specialty chemical sector.

  • Nifty 50 was trading at 25,025.40 (-15.7, -0.1%) , BSE Sensex was trading at 81,850.52 (-70.8, -0.1%) while the broader Nifty 500 was trading at 23,639.55 (-4.1, 0.0%)

  • Market breadth is in the green. Of the 1,924 stocks traded today, 1,033 were gainers and 851 were losers.

Riding High:

Largecap and midcap gainers today include Suzlon Energy Ltd. (81.95, 5%), JSW Infrastructure Ltd. (330.70, 4.7%) and Bajaj Auto Ltd. (11,420.75, 3.9%).

Downers:

Largecap and midcap losers today include Tata Motors Ltd. (976.30, -5.7%), Oil India Ltd. (581.70, -4.5%) and Oil And Natural Gas Corporation Ltd. (285.30, -3.5%).

Movers and Shakers

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

Top high volume gainers on BSE included Prism Johnson Ltd. (232.61, 11.8%), R R Kabel Ltd. (1,711.75, 8.7%) and Shoppers Stop Ltd. (886, 8.4%).

Top high volume losers on BSE were Tata Motors Ltd. (976.30, -5.7%) and JBM Auto Ltd. (1,926.15, -0.2%).

Olectra Greentech Ltd. (1,617.55, 3.6%) was trading at 9.3 times of weekly average. Procter & Gamble Health Ltd. (5,410, 2.4%) and JSW Infrastructure Ltd. (330.70, 4.7%) were trading with volumes 7.6 and 5.3 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

41 stocks hit their 52 week highs,

Stocks touching their year highs included - Ajanta Pharma Ltd. (3,390.15, -1.1%), Bajaj Auto Ltd. (11,420.75, 3.9%) and Biocon Ltd. (385.30, -0.3%).

10 stocks climbed above their 200 day SMA including R R Kabel Ltd. (1,711.75, 8.7%) and YES Bank Ltd. (23.82, 3.7%). 17 stocks slipped below their 200 SMA including IRB Infrastructure Developers Ltd. (59.85, -4.1%) and The New India Assurance Company Ltd. (237.75, -3.9%).

 
Trendlyne Marketwatch
Trendlyne Marketwatch
10 Sep 2024, 03:31PM
Market closes higher, Century Textiles acquires approx 10-acre land in Worli, Mumbai
By Trendlyne Analysis

Nifty 50 closed at 25,041.10 (104.7, 0.4%) , BSE Sensex closed at 81,921.29 (361.8, 0.4%) while the broader Nifty 500 closed at 23,643.65 (141.5, 0.6%). Market breadth is ticking up strongly. Of the 2,256 stocks traded today, 1,553 were gainers and 683 were losers.

Indian indices extended their gains in the afternoon session to close higher. The Indian volatility index, Nifty VIX, fell 6.2% and closed at 13.4 points. Century Textiles & Industries touched an all-time high of Rs 2,530 as it acquired approx 10-acre land in Worli, Mumbai, for Rs 1,100 crore, with an estimated booking value potential of Rs 14,000 crore.

Nifty Midcap 100 and Nifty Smallcap 100 closed in the green. Nifty Metal and Nifty Media closed higher. According to Trendlyne’s sector dashboard, Hotels Restaurants & Tourism emerged as the best-performing sector of the day, with a rise of 3.2%.

European indices traded mixed. Major Asian indices closed mixed. US index futures traded mixed, indicating a cautious start to the trading session. Apple unveiled the latest version of its iPhone on Monday, with analysts stating that the new, AI-powered features were in line with expectations.

  • Money flow index (MFI) indicates that stocks like SBI Card and Payment Services, Bajaj Finserv, Suven Pharmaceuticals, and Medplus Health Services are in the overbought zone.

  • Media stocks like Zee Entertainment Enterprises, Hathway Cable & Datacom, Nazara Technologies, and Saregama India rise more than 3% in trade. All constituents of the broader Nifty Media index are trading in the green, helping it to surge more than 2%.

  • Century Textiles & Industries surges to its all-time high of Rs 2,530 as it acquires approximately 10-acre land in Worli, Mumbai, for Rs 1,100 crore from Nusli Wadia. This land adds an estimated booking value potential of Rs 14,000 crore.

  • ICICI Securities maintains its 'Buy' call on Va Tech Wabag with an upgraded target price of Rs 1,541 per share. This indicates a potential upside of 12.9%. The brokerage believes the company is well positioned to capture the increasing capex in the water segment due to its end-to-end solutions platform, strong brand, and asset-light business mode. It expects the firm's revenue to grow at a CAGR of 19.2% over FY25-26.

  • The Competition Commission of India (CCI) introduces stricter regulations for global mergers and acquisitions in the digital sector. Companies with significant Indian operations now require CCI approval for deals where the target firm has over 10% of its global customers in India and transactions valued at Rs 2,000 crore (about $240 million) or more.

  • Action Construction Equipment rises as it receives an order from the Ministry of Defence (MoD) to supply 99 forklifts.

  • LE Travenues Technology (Ixigo) rises sharply as its bus business, AbhiBus, partners with European bus services provider FlixBus. This partnership will help FlixBus to expand its services in South India. FlixBus tickets will now be available on AbhiBus at a starting price of Rs 99.

  • Lemon Tree Hotels surges as it signs a license agreement for a new hotel in Nashik, Maharashtra, set to open in FY26. The property will be managed by Lemon Tree's wholly-owned subsidiary, Carnation Hotels. It will feature 57 rooms, a restaurant, a banquet hall, a meeting room, a swimming pool, and a spa.

  • Mutual Funds' net equity inflows grow 3% MoM to Rs 38,239 crore in August, according to data released by the Association of Mutual Funds in India (AMFI). However, debt inflows decline 62% YoY. The total AUM of the industry stands at 66.4 lakh crore.

  • SEPC surges to its 5-year high of Rs 32.2 per share as it bags an order worth Rs 182.6 crore from the Irrigation Division, Gov. of Bihar to supply, install, test, operate, and maintain irrigation equipment for drinking water.

  • Zaggle Prepaid Ocean Services surges as it signs an agreement with HDFC ERGO General Insurance to provide its Zaggle Propel reward platform, which includes channel rewards and recognition.

  • ITI rises sharply as it bags an order worth Rs 300 crore from the Bihar Renewable Energy Development Authority (BREDA) to supply and install 1 lakh solar street light systems in the state.

  • Saurabh Gadgil, Managing Director of P N Gadgil Jewellers, forecasts a revenue of Rs 10,000 crore with double-digit margins for FY27. He expects 15% of this revenue to come from studded jewellery. Gadgil highlights the company's goal to reach 60 stores by FY27 and expand to 100-120 stores over the following six years. The bidding process for the company's IPO started today.

  • India Opportunities Growth fund sells 1.1 crore shares (1.7% stake) in Electrosteel Castings, worth approximately Rs 219.5 crore, at an average price of Rs 7,020 per share in a block deal.

  • Ecos (India) Mobility & Hospitality surges to its all-time high of Rs 524.7 as 4 lakh shares (0.7% stake), worth approximately Rs 18.4 crore, change hands in a block deal on Monday at an average price of Rs 460.3 per share. Plutus Wealth Management is the buyer in the transaction.

  • JTL Industries rises after expanding the capacity of its galvanised iron (GI) plant in Maharashtra by 5,000 MT per quarter.

  • Goldman Sachs maintains its ‘Buy’ rating with a target price of Rs 715. The brokerage expects the India business to grow in double digits from FY25. It also projects the foods and premium personal care businesses to grow by 2X in the next three years.

  • Dodona Holdings sells 10.2 crore shares (0.3% stake) in Trent, worth approximately Rs 716 crore, at average price of Rs 7,020 per share in a block deal. Siddharth Yog is the buyer in the transaction.

  • JSW Energy is rising as its subsidiary, JSW Neo Energy, bags an order from Maharashtra State Electricity Distribution (MSEDCL) for a 600 MW wind-solar hybrid project with a 400 MW greenshoe option.

  • HG Infra Engineering surges as it receives a letter of award worth Rs 781.1 crore from the Ministry of Road Transport & Highways (MoRTH) to upgrade the existing 6-lane road, including an elevated corridor, on NH 47 in Gujarat.

  • Prataap Snacks, Gopal Snacks, and Bikaji Foods rise as the Union Finance Minister, Nirmala Sitharaman, announces a GST rate cut from 18% to 12% for namkeens and savoury items at the 54th GST Council meeting.

  • Indian Renewable Energy Development Agency rises sharply as it reportedly signs a memorandum of understanding (MoU) with SJVN and GMR Energy to set up the Karnali hydro-electric project in Nepal with a capacity of 900 MW.

  • GMR Airports Infrastructure is rising as it acquires an additional 10% stake in Delhi International Airport (DIAL) for $126 million (approx. Rs 1,057.9 crore) from Fraport AG Frankfurt Airport Services Worldwide. The acquisition will take GMR Airports' holding in DIAL to 74%.

  • Dixon Technologies (India) rises as its wholly-owned subsidiary, Padget Electronics, signs a memorandum of understanding (MoU) with HP India Sales to manufacture notebooks, desktops, and all-in-one PCs.

  • Ahluwalia Contracts rises sharply as it bags two orders worth Rs 1,307 crore from Signatureglobal Business Park and Signatureglobal Homes for civil structure and finishing works for the Project De-luxe DXP and Iconic Tower in Gurugram.

  • Nifty 50 was trading at 24,974.05 (37.7, 0.2%), BSE Sensex was trading at 81,768.72 (209.2, 0.3%) while the broader Nifty 500 was trading at 23,593.05 (90.9, 0.4%).

  • Market breadth is ticking up strongly. Of the 1,937 stocks traded today, 1,607 were on the uptrend, and 289 went down.

Riding High:

Largecap and midcap gainers today include Tata Power Company Ltd. (445.35, 6.6%), Linde India Ltd. (7,789.95, 5.6%) and Suzlon Energy Ltd. (78.05, 5.0%).

Downers:

Largecap and midcap losers today include HDFC Life Insurance Company Ltd. (702.90, -4.5%), Vedanta Ltd. (440, -4.4%) and Oil India Ltd. (608.90, -4.0%).

Volume Shockers

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

Top high volume gainers on BSE included Prism Johnson Ltd. (208.10, 19.6%), Sumitomo Chemical India Ltd. (608.85, 14.5%) and Aether Industries Ltd. (1,059.35, 8.7%).

ITI Ltd. (300.40, 6.1%) was trading at 14.8 times of weekly average. Atul Ltd. (8,000, 0.6%) and Divi's Laboratories Ltd. (5,426.45, 4.9%) were trading with volumes 4.6 and 4.3 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

34 stocks overperformed with 52 week highs,

Stocks touching their year highs included - Ajanta Pharma Ltd. (3,426.50, 3.9%), Akzo Nobel India Ltd. (3,847.75, 1.9%) and Britannia Industries Ltd. (5,969.90, 0.5%).

22 stocks climbed above their 200 day SMA including Latent View Analytics Ltd. (492.95, 6.3%) and ITI Ltd. (300.40, 6.1%). 4 stocks slipped below their 200 SMA including Alok Industries Ltd. (26.62, -0.3%) and Westlife Foodworld Ltd. (799.45, 0.0%).

 
Trendlyne Marketwatch
Trendlyne Marketwatch
09 Sep 2024
Market closes higher, LIC faces Rs 230 crore GST penalties from Telangana and Tamil Nadu
By Trendlyne Analysis

Nifty 50 closed at 24,936.40 (84.3, 0.3%) , BSE Sensex closed at 81,559.54 (375.6, 0.5%) while the broader Nifty 500 closed at 23,502.15 (24.5, 0.1%). Market breadth is in the red. Of the 2,291 stocks traded today, 825 showed gains, and 1,440 showed losses.

Indian indices closed in the green, with the benchmark Nifty 50 index closing at 24,936.4 points. The Indian volatility index, Nifty VIX, declined by 6.4% and closed at 14.2 points. Hindustan Unilever formed a committee of independent directors to evaluate the prospects of its ice cream business. This move follows Unilever PLC’s plan to separate its global ice cream operations.

Nifty Midcap 100 and Nifty Smallcap 100 closed in the red. Nifty FMCG & BSE FMCG Sector were among the top index gainers today. According to Trendlyne’s Sector dashboard, FMCG emerged as the best-performing sector of the day, with a jump of over 1.7%.

Asian indices closed mixed while European indices are trading in the green. US index futures traded higher, indicating a positive start to the trading session. Brent crude oil futures are trading in the green. Boeing's stock increased by 3% in U.S. premarket trading following a tentative agreement with a union in the U.S. Pacific Northwest, potentially averting a major strike later this week.

  • Relative strength index (RSI) indicates that stocks like Godrej Industries, Piramal Pharma, ICICI Lombard General Insurance, and Eris Lifesciences are in the overbought zone.

  • Life Insurance Corp of India falls after facing Rs 230 crore in GST penalties from Telangana and Tamil Nadu. Telangana's Rs 113.7 crore penalty is for FY19-20, comprising GST, interest, and penalties, while Tamil Nadu's Rs 116.6 crore for FY20-21 with similar charges.

  • JSW Infrastructure rises as it approves a capex of Rs 2,359 crore for the capacity expansion of its Jaigarh and Dharamtar ports. This comes as part of the company's plans to expand capacity to 400 million tonnes (MT) in FY30 from its existing capacity of 170 MT.

  • Thomas Cook (India) and its group company, SOTC Travel, sign a 24-month strategic partnership memorandum of understanding (MOU) with Malaysia Airlines. This partnership aims to capitalize on the growing interest of Indian travelers in Malaysia and other destinations.

  • Union Minister for Heavy Industries, HD Kumaraswamy, announces the extension of the Electric Mobility Promotion Scheme (EMPS) until the launch of the third phase of the Faster Adoption and Manufacturing of Electric Vehicles (FAME-III). The EMPS, set to expire on September 30, will likely be extended for an additional two months.

  • Hindustan Unilever rises sharply to hit a new all-time high of Rs 2,938.2 as it forms a committee of independent directors to evaluate the prospects of its ice cream business. This move follows Unilever PLC’s plan to separate its global ice cream operations.

  • FMCG stocks like Hindustan Unilever, United Breweries, United Spirits, and Dabur India rise more than 2% in trade, helping the broader Nifty FMCG index to surge to its all-time high of 64,466.1.

  • Nibe surges to its 5% upper circuit as its subsidiary, Nibe Space, signs a memorandum of understanding (MoU) with Indian defense, infrastructure companies, and startups to build and operate a private Earth observation constellation, offering images and analytics as a service. Nibe Defence and Aerospace wins four orders worth Rs 50.1 crore from Indian defense companies for supplying and integrating electronic equipment.

  • Crisil Ratings projects jewellery retailers’ revenue to increase by 22-25% YoY in FY25, compared to its previous estimates of 17-19%. The rating agency attributes this growth to higher volumes, driven by a decline in retail gold prices following the announcement of the customs duty cut to 6% in the Union Budget.

  • RBM Infracon surges to its 5% upper circuit as it bags a Rs 3,498 crore order from Oil and Natural Gas Corp (ONGC). The contract covers Rs 3,371 crore for crude and Rs 127 crore for gas at Nandej, valid for 15 years.

  • Minda Corp rises as its board of directors schedules to meet on Thursday to consider raising funds by issuing equity shares through a preferential issue, qualified institutional placement (QIP), rights issue, or other modes.

  • Suzlon Energy is rising as it secures a 1,166 megawatt (MW) order from NTPC's arm, NTPC Green Energy, to install a total of 370 wind turbine generators (WTGs), making it the largest wind energy order in India.

  • Electric two-wheeler manufacturer Ather Energy plans to go public with an initial public offering (IPO) that features a fresh issue of shares valued at Rs 3,100 crore. The IPO also includes an offer for sale of up to 22 million shares by investors and promoters. As part of the offer for sale, Tarun Sanjay Mehta and Swapnil Babanlal Jain will each sell 1 million equity shares.

  • SpiceJet rises sharply after announcing plans to issue shares to Carlyle Aviation in a restructuring deal. The deal will convert Rs 335.8 crore from Carlyle’s total dues of Rs 1,155.7 crore into equity, reducing SpiceJet's debt to Rs 818.5 crore.

  • Mangalore Chemicals & Fertilizers falls after temporarily shutting down operations at its ammonia and urea plants to replace the reformer catalyst.

  • Metro Brands' promoters, Farah Malik Bhanji, Alisha Rafique Malik, and Zia Malik Lalji, among others, sell a 2.2% stake in the company for Rs 750 crore in a bulk deal on Friday.

  • Suvankar Sen, Managing Director & CEO of Senco Gold, highlights the company’s plans to invest Rs 50-60 crore in its non-jewellery business, and Rs 25-30 crore annually thereafter. He notes that the non-jewellery segment currently accounts for about 4-5% of total revenue, with gross margins ranging from 30-35%. Sen adds that September has been a strong month for both the industry and the company.

  • Gala Precision Engineering's shares debut on the bourses at a 36.3% premium to the issue price of Rs 529. The Rs 167.9 crore IPO has received bids for 201.4 times the total shares on offer.

  • Nazara Technologies is rising as it acquires a 48.4% stake (or 5,157 shares) in Paper Boat Apps for a total cash consideration of Rs 300 crore. The company has completed the first tranche of payment of RS 225 crore.

  • Oriana Power rises sharply as its subsidiary, Truere Surya, bags a contract worth Rs 520 crore from Dalmia Cement to set up a 128 MW solar power plant in Tamil Nadu. Dalmia Cement also acquires a 26% stake in Truere Surya for Rs 44.8 crore to source solar power as a captive consumer.

  • UBS maintains a 'Buy' rating on Shriram Finance with a higher target price of Rs 3,850. The brokerage notes the merger synergies continue to support growth. It believes the net interest margin (NIM) compression is temporary and highlights that expanding into new segments will be crucial for growth. The brokerage expects asset quality to remain stable and has kept its credit cost guidance unchanged.

  • Granules India falls as it receives six observations from the US FDA following an inspection at its Gagillapur facility in Hyderabad, Telangana.

  • Godfrey Phillips India's board of directors approves the appointment of Bina Modi as its Managing Director for the next five years, effective November 14.

  • Ion Exchange (India) rises as it secures a contract worth Rs 168 crore from Tecnimont SpA, Italy, for de-oiling, demineralization, and condensate poly unit packages for the Abu Dhabi National Oil Company Hail & Ghasha development project.

  • Mazagon Dock Shipbuilders is rising as it bags an order worth Rs 1,486.4 crore from Oil & Natural Gas Corp (ONGC) for a subsea pipeline replacement on an engineering, procurement, and construction (EPC) basis.

  • Nifty 50 was trading at 24,800.50 (-51.7, -0.2%), BSE Sensex was trading at 80,961.66 (-222.3, -0.3%) while the broader Nifty 500 was trading at 23,371.75 (-106.0, -0.5%).

  • Market breadth is overwhelmingly negative. Of the 2,015 stocks traded today, 468 were in the positive territory and 1,495 were negative.

Riding High:

Largecap and midcap gainers today include General Insurance Corporation of India (402.65, 5.0%), Gujarat Fluorochemicals Ltd. (3,976.50, 4.4%) and One97 Communications Ltd. (627.65, 4.0%).

Downers:

Largecap and midcap losers today include Power Finance Corporation Ltd. (523.60, -4.0%), Oil And Natural Gas Corporation Ltd. (298.90, -3.2%) and Bajaj Holdings & Investment Ltd. (10,357.10, -3.1%).

Crowd Puller Stocks

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

Top high volume gainers on BSE included Alembic Pharmaceuticals Ltd. (1,203.35, 8.8%), Jubilant Pharmova Ltd. (1,031.20, 8.4%) and The New India Assurance Company Ltd. (257.05, 3.0%).

Top high volume losers on BSE were Jupiter Wagons Ltd. (508.50, -7.1%), Granules India Ltd. (666.85, -3.1%) and R R Kabel Ltd. (1,528.55, -3.0%).

Anand Rathi Wealth Ltd. (3,840, -2.0%) was trading at 4.2 times of weekly average. Dabur India Ltd. (662.35, 2.8%) and Narayana Hrudayalaya Ltd. (1,377, 2.3%) were trading with volumes 3.2 and 3.1 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, while 1 stock hit their 52 week lows.

Stocks touching their year highs included - Dabur India Ltd. (662.35, 2.8%), Divi's Laboratories Ltd. (5,170, 0.6%) and FDC Ltd. (562.10, -1.6%).

Stock making new 52 weeks lows included - CSB Bank Ltd. (310.80, -1.2%).

8 stocks climbed above their 200 day SMA including Usha Martin Ltd. (363.30, 3.5%) and Tata Elxsi Ltd. (7,839.05, 3.3%). 23 stocks slipped below their 200 SMA including Sonata Software Ltd. (660.50, -4.2%) and Mangalore Refinery And Petrochemicals Ltd. (189.76, -3.8%).

 
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The Baseline
06 Sep 2024
Five Interesting Stocks Today - September 06, 2024

1. Medplus Health Services:

This healthcare supplies company rose by over 8% in the past week. The firm recently obtained a stay order on the suspension of its Vikhroli, Maharashtra store. In the past week, ICICI Prudential India Opportunities Fund acquired 18.1 lakh shares of the company for Rs 111.6 crore, while ICICI Prudential Pharma Healthcare & Diagnostics purchased a 1.4% stake. Additionally, the Government of Singapore bought 11.5 lakh shares.

For Q1FY25, the company’s net profit had surged by 279.4% YoY to 14.4 crore, while its revenue rose by 15.8% YoY on the back of 15.3% YoY rise in its retail segment revenue. The firm beat trendlyne’s Forecaster estimates for net profit by 16.5%, but missed the revenue estimate by 0.5%. The stock appears in a screener for stocks with strong momentum.

At its recent Annual General Meeting (AGM), the firm's management emphasized their strategy to deepen market penetration in core areas, particularly in tier-2 and smaller locations, which now account for approximately 50% of their stores. They also outlined plans to open over 600 new stores in FY25. Currently, the company is the second-largest organized retail pharmacy network, with 4,444 physical stores as of Q1FY25, trailing only Apollo Pharmacy, which has 6,074 stores.

In June, the company introduced Medplus brand generics, offering discounts of 50-80%. In FY24, these products generated revenues of Rs 747 crore on a gross merchandise value (GMV) basis, accounting for 8.3% of net revenue. For FY25, Sujit Mahato, CFO of the firm maintained previously guided revenue growth of 20%. He adds that, “Given that a significant portion of our sales is now coming from MedPlus private label, and these are all selling at half the price of our regular brands. This will affect our overall top line.”

Analysts note that major organized retail companies are significantly impacting the pharma retail sector by expanding market reach and intensifying competition. These chains bring advanced supply chains, extensive distribution networks, and strong marketing power, leading to increased consumer access and higher sales volumes. They project India’s retail pharmacy market to grow at ~10% CAGR from 2022-30, with organized pharmacy penetration reaching ~23% by FY27.

HDFC Securities has maintained a “Buy” rating on Medplus Health Services, with a target price of Rs 820. The brokerage anticipates gradual margin improvement, driven by a favorable mix of factors: consistent growth in mature stores (2+ years, with ~9-10% margin), a rising share of margin-enhancing private-label and Medplus-brand generics, and an efficient supply chain.

2. AU Small Finance Bank:

This banking firm surged 9.8% over the past week as it submitted an application to the RBI for a voluntary transition into a universal bank. This shift could benefit AU Small Finance Bank (SFB) by allowing it less stringent regulatory norms. Analysts predict the transition will broaden its target market and enhance visibility among depositors.

In April, the central bank had announced guidelines related to the eligibility criteria for small finance banks seeking a voluntary transition to a universal bank. The RBI stated that only profitable and listed small finance banks with a minimum net worth of Rs 1,000 crore and a gross non-performing assets (NPA) ratio of less than 3% for the last two fiscal years are eligible to apply for the transition.

In Q1FY25, the bank reported net interest income growth of 54.1% YoY to Rs 1,920 crore. Gross NPA on loans disbursed stayed constant at 1.8%, well below RBI’s requirement for a universal bank transition. If granted this status, its capital adequacy ratio (buffer capital it is required to hold) requirement would decrease from the current level of 15% to 11.5%. In addition to that, the bank would no longer be required to keep at least half of its loan portfolio in loans worth less than Rs 25 lakh.

MD and CEO Sanjay Agarwal said, "We don’t have to do anything extra in terms of balance-sheet build-up to get the license. So, there won’t be any extra cost for this." He also emphasized that the transition should be smooth as the bank is already governed under Schedule Commercial Bank regulations, meaning no additional costs are expected.

NDTV Profit reports that Goldman Sachs initiates coverage on AU SFB with a ‘Buy’ rating, and sets the highest target price of Rs 831 among analysts tracking the bank. With the lender’s growing market share in deposits, the brokerage forecasts an EPS CAGR of 27% over FY25-27.

3. Radico Khaitan:

This breweries and distilleries company saw a 10% increase in its stock price in the past week. This followed the government's decision on August 29 to remove the cap on the amount of sugarcane that can be used for ethanol production. Ethanol is a key ingredient in alcoholic beverages, and removing the cap on sugar diversion is expected to increase the supply of ethanol. This, in turn, could benefit companies involved in the alcoholic beverage industry by reducing the cost of raw materials. 

The changes will become more significant once the next sugarcane-crushing season begins. Crushing season in India is typically from October to March or April.

The price rise is also supported by positive Q1FY25 results. Radico’s revenue and net profit grew by 19.3% YoY and 20.6% YoY, respectively, reaching Rs 1,140.2 crore and Rs 76.3 crore. Despite the temporary closure of liquor shops due to elections, Radico Khaitan's volume remained unaffected, and revenue exceededTrendlyne's Forecaster estimates by 0.6%. The major contributor to this was the Prestige & Above brands category, where volume increased by 14.3% YoY. The revenue of this category alone reached Rs 499.5 crores, a 19.1% YoY increase.

Dilip Banthiya, Chief Financial Officer, commented on the results and performance: "Going forward, our focus will be on improving our profitability along with the cash flow generation and more efficient working capital management, resulting in debt reduction.” 

Sharekhan maintains a Buy rating with a target price of Rs 1,995 per share. According to the brokerage, the company’s focus on high-end products and backward integration is expected to drive strong double-digit earnings growth in FY25-26. It expects the company’s revenue to grow at a CAGR of 18.6% over FY25-26.

4. Hindustan Petroleum Corporation: 

This oil exploration and production company has risen 4.4% over the past week to touch its all-time high of Rs 457.2, after crude oil prices fell over 4% amid concerns over lower global demand growth, particularly from the two largest economies of the world - the US and China. This surge in stock price has placed the company in a screener of stocks with strong momentum.

In Q1FY25, Hindustan Petroleum Corp (HPCL) reported a net profit decline of 90.6% YoY to Rs 633.9 crore, missing Trendlyne Forecaster estimates by 55.3%. This decline was attributed to weak gross refining margins and rising crude oil costs, with total expenses increasing by 8.6% YoY to Rs 1.21 lakh crore during the quarter. However, the company achieved its highest-ever quarterly sales volume of 12.6 million metric tonnes (MMT), marking a 6% YoY increase.

The earnings of oil marketing companies (OMCs) usually rely on refining and marketing margins. OMCs have kept retail prices largely unchanged for the past 28 months which has led to significant losses. HPCL’s marketing loss on LPG stood at Rs 2,540 crore. Bharat Petroleum Corp (BPCL) and Indian Oil Corp (IOCL) also reported similar losses, amounting to Rs 2,300 crore and Rs 5,200 crore, respectively.

The  Rajasthan refinery, starting in FY26, is a joint venture between HPCL (74%) and the government of Rajasthan (26%) with a capacity of 9 MMTPA. The project has a total estimated cost of Rs 72,937 crore, with Rs 48,001 crore already invested by the end of Q1FY25. The management is confident, noting that 80% of the project has been completed. This refinery will boost HPCL's refining capacity by 30% and is projected to contribute 37% to FY26 EBITDA.

HPCL has increased its Russian crude usage to 30-35% with the expansion of the Vizag refinery and anticipates greater benefits from this crude along with a faster ramp-up at Vizag. Commenting on this, Chairman and MD Pushp Kumar Joshi stated, “We aim to reach 3.5 MMT per quarter by the second half of FY25, up from the current production of 3 MMT, and increase refinery capacity to 15 MMT by FY28.”

Motilal Oswal has maintained a “Buy” rating on HPCL, with a target price of Rs 460. The brokerage highlights that separating and listing the company’s lubricant business might increase the stock’s value by up to Rs 33 per share. Additionally, upgradation of the Vizag unit and the start of the Rajasthan refinery at the end of Q4FY25 are expected to drive growth.

5. Gujarat Gas:

This non-utility electrical company surged 12% on Monday after its board approved a major restructuring. Gujarat State Petroleum Corporation (GSPC), Gujarat State Petronet, and Gujarat State Petroleum Corporation Energy will merge into India’s largest city gas distribution company, Gujarat Gas (GGL). The newly formed company will then separate its transmission business into a new entity, GSPL Transmission Limited (GTL).

The merger will combine the operations of Gujarat State Petroleum Corporation and Gujarat Gas to simplify processes and improve organizational structure. This will reduce internal transactions, leading to higher earnings for Gujarat Gas. It isl also expected to help expand their gas trading market and strengthen competitiveness. 

Post merger, Gujarat Gas is likely to have better profit margins, returns, and cash flow. Shareholders of Gujarat State Petronet will get shares in both Gujarat Gas and the new GSPL Transmission Limited.

Milind Torawane, Managing Director of Gujarat Gas and also MD of Gujarat State Petroleum Corporation Limited, said, ”The board has approved the scheme to simplify the structure, enabling GGL and GTL to pursue their growth strategies more effectively and expand their operations.” According to the management's growth projections, Gujarat Gas is expected to become one of India’s largest integrated players in the gas trading and city gas distribution sectors.

In Q1FY25 the company reported a net profit increase of 53.1% YoY to Rs 330.7 crore due to reduction in spot gas prices and increase in volumes. Revenue grew 17.7% YoY to Rs 4,450.3 crore during the quarter. The company appears in a screener of stocks where mutual funds increased their shareholding over the past two months.

Nirmal Bang upgrades Gujarat Gas to ‘Buy’ from ‘Sell,’ with a new target price of Rs 702, up from Rs 552. The upgrade is driven by expected gains from gas sourcing benefits post-merger, and a favorable tax shield. Key factors include new earnings from GSPC’s gas trading, potential value-added tax (VAT) savings, and improved competitiveness in Industrial piped natural gas. EBITDA is projected to grow at a CAGR of 17.5% over FY 25-27.

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
06 Sep 2024
Market closes lower, Pidilite Industries signs a partnership agreement with CollTech Group
By Trendlyne Analysis

Market sinks in today's trading. Nifty 50 closed at 24,852.15 (-293.0, -1.2%) , BSE Sensex closed at 81,183.93 (-1,017.2, -1.2%) while the broader Nifty 500 closed at 23,477.70 (-285.1, -1.2%). Market breadth is highly negative. Of the 2,238 stocks traded today, 625 were gainers and 1,592 were losers.

Indian indices closed lower after falling throughout the day. The Indian volatility index, Nifty VIX, rose 7.1% and closed at 15.2 points. VA Tech Wabag secured an approximately Rs 2,700 crore order from the Saudi Water Authority for a 300 million litre per day (MLD) seawater desalination plant in Saudi Arabia.

Nifty Smallcap 100 and Nifty Midcap 100 closed in the red, taking cues from the benchmark index. Nifty PSU Bank and S&P BSE Telecom Index were among the biggest index losers today. According to Trendlyne’s Sector dashboard, Fertilizers emerged as the worst-performing sector of the day, with a fall of 2.5%.

Asian indices closed mixed. European indices are trading in the red. US index futures are trading in the red as investors awaited job data, which will impact the Federal Reserve's decision on an interest rate cut later this month. Brent crude oil futures are trading higher.

  • Money flow index (MFI) indicates that stocks like Bajaj Finserv, Eris Lifesciences, KEC International, and Chalet Hotels are in the overbought zone.

  • Synergy Green Industries surges to its all-time high of Rs 469 as it receives orders worth Rs 163.7 crore from Vestas Wind Systems for 2 megawatt (MW) and 4 MW parts, split equally between domestic and export requirements.

  • Sansera Engineering signs a long-term deal with Dynamatic Technologies to produce complex components for the Airbus A220 door program.

  • Godfrey Phillips India surges to its all-time high of Rs 7,095 per share as its board of directors schedules a meeting on September 20 to consider a share buyback.

  • RITES emerges as the lowest bidder for a major infrastructure project by the UP State Bridge Corporation. The project involves supervising, monitoring, and ensuring the quality and safety of bridges, rail overpasses/underpasses, flyovers, and elevated roads across multiple districts in Uttar Pradesh. If awarded, the contract will last 36 months from the date of the letter of award.

  • Pidilite Industries rises as it signs a partnership agreement with CollTech Group to serve as the exclusive distributor of CollTech’s extensive range of products in India.

  • Shyam Metalics and Energy's stainless steel sales rise 91% YoY to 7,060 million tonnes (MT) in August. Aluminium foil sales increase by 23% YoY to 1,561 MT. The company's speciality alloys sales grows 29% YoY, and carbon sales rise by 25% YoY.

  • Gujarat Mineral Development Corporation (GMDC) rises after the coal ministry reportedly allocates the Kudanali Lubri coal mine to the company.

  • Peak XV Partners Investments (formerly Sequoia India) reportedly increased the size of its block deal for Indigo Paints, launched on September 5, from Rs 750-800 crore to Rs 1,550 crore due to strong demand. As a result, the firm has sold 22% of its stake, doubling the initially planned dilution of 11%.

  • KPI Green Energy receives approval for 12.72 MW wind-solar hybrid power projects under its captive power producer (CPP) segment.

  • Foreign institutional investors buy equity worth Rs 11,885.5 crore in the market over the past week, according to Trendlyne's FII dashboard. Index options witness the highest outflow of Rs 56,340.2 crore from foreign investors. Meanwhile, mutual funds are net sellers in the equity market, divesting Rs 1,753.5 crore during the same period.

  • Motilal Oswal maintains its 'Buy' call on Coal India with an upgraded target price of Rs 600 per share. This indicates a potential upside of 22.7%. The brokerage remains positive on the stock due to its strong volume outlook, healthy e-auction premiums, and lower costs. It expects the company's revenue to grow at a CAGR of 9.1% over FY25-26.

  • Reports indicate that the Securities and Exchange Board of India (SEBI) plans to tighten derivative rules to raise entry barriers and make trading more costly, aiming to curb retail investors' speculation on risky contracts. The regulator will restrict options contract expiries to one per exchange per week and nearly triple the minimum trading amount.

  • Phoenix Mills rises as it announces September 21 as the record date for its 1:1 bonus share issue, pending shareholders' approval at the annual general meeting (AGM) on September 13.

  • Reliance Industries' board of directors approves a bonus issue of shares to equity holders in the ratio of 1:1. This means that each shareholder will receive one fully paid-up equity share, with a face value of Rs 10, for every share they hold on the record date.

  • Baazar Style Retail’s shares make a flat debut on the bourses at Rs 389. The Rs 834.7 crore IPO received bids for 40.7 times the total shares on offer.

  • Morgan Stanley notes that while the Indian IT sector has seen a significant rally, there is still potential for further gains. This is attributed to an ongoing revenue upgrade cycle that is likely to maintain high valuations. The brokerage expects this cycle, which started in Q1FY25, to continue for at least one to two more quarters, supporting sustained high multiples. 

  • Matrimony.com rises as its board approves a Rs 72 crore buyback of approximately 7 lakh equity shares at Rs 1,025 per share.

  • Strides Pharma rises sharply as its subsidiary, Strides Pharma Global, gets US FDA approval for a generic version of Theophylline extended-release tablets. According to IQVIA, the tablets, used for treating chronic asthma and other lung diseases, have a market size of $22.3 million.

  • VA Tech Wabag surges after winning a $317 million (approximately Rs 2,700 crore) order from the Saudi Water Authority for a 300 million litre per day (MLD) mega seawater desalination plant in Saudi Arabia.

  • Nuvama maintains its 'Buy' rating on Jubilant Ingrevia, and sets a higher target price of Rs 849. The brokerage expects the company's EBITDA contribution from its specialty chemicals business to grow from 48% in FY24 to 65% by FY27. They also anticipate a recovery in the agrochemicals sector and early progress in the diketene business, which are expected to boost margins.

  • Angel One's average daily turnover (ADTO) grows by 57.9% YoY to Rs 44.9 lakh crore in August. Its client base also improves by 62.9% YoY to 2.7 crore, with total order numbers rising by 40.8% YoY in the same month.

  • Mrs. Bectors Food Specialities' surges as it reportedly plans to issue shares worth Rs 400 crore through a qualified institutional placement (QIP) with an indicative price of Rs 1,550 per share.

  • Ashoka Builldcon surges to its all-time high of Rs 284.7 per share as its subsidiary, Viva Highways, sells its land in Pune for a consideration of Rs 453 crore.

  • KEC International surges to its all-time high of Rs 1,037.1 per share as it bags an order worth Rs 1,423 crore to design, supply, and install 380 kV transmission lines in Saudi Arabia.

  • Nifty 50 was trading at 25,088.80 (-56.3, -0.2%) , BSE Sensex was trading at 82,080.74 (-120.4, -0.2%) while the broader Nifty 500 was trading at 23,742.70 (-20.1, -0.1%)

  • Market breadth is ticking up strongly. Of the 1,921 stocks traded today, 1,363 showed gains, and 520 showed losses.

Riding High:

Largecap and midcap gainers today include Gujarat Fluorochemicals Ltd. (3,808.90, 8.1%), SBI Cards and Payment Services Ltd. (800.65, 4.3%) and Marico Ltd. (665.25, 3.3%).

Downers:

Largecap and midcap losers today include Vodafone Idea Ltd. (13.35, -11.5%), Indian Bank (523.45, -5%) and Indus Towers Ltd. (423.10, -4.5%).

Volume Rockets

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

Top high volume gainers on BSE included Godfrey Phillips India Ltd. (7,205.85, 12.4%), Gujarat Fluorochemicals Ltd. (3,808.90, 8.1%) and Galaxy Surfactants Ltd. (3,056.15, 4.8%).

Top high volume losers on BSE were IDBI Bank Ltd. (88.33, -4.5%), State Bank of India (782.50, -4.4%) and NLC India Ltd. (269.15, -4.2%).

Indigo Paints Ltd. (1,479.35, -4.0%) was trading at 90.6 times of weekly average. Gujarat Mineral Development Corporation Ltd. (370.90, 1.8%) and Aavas Financiers Ltd. (1,875.85, 3.3%) were trading with volumes 6.9 and 6.5 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

33 stocks made 52 week highs, while 1 stock hit their 52 week lows.

Stocks touching their year highs included - Ajanta Pharma Ltd. (3,350.35, 0.6%), Akzo Nobel India Ltd. (3,760, 2.0%) and Bajaj Finserv Ltd. (1,857.15, -0.4%).

Stock making new 52 weeks lows included - CSB Bank Ltd. (314.50, -1.3%).

16 stocks climbed above their 200 day SMA including Gujarat Fluorochemicals Ltd. (3,808.90, 8.1%) and GMM Pfaudler Ltd. (1,409.10, 3.5%). 20 stocks slipped below their 200 SMA including Vodafone Idea Ltd. (13.35, -11.5%) and Canara Bank (103.38, -4.5%).

 
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The Baseline
05 Sep 2024
Five stocks to buy from analysts this week - September 5, 2024
By Divyansh Pokharna

1. Tata Technologies:

ICICI Securities reiterates its ‘Buy’ rating on this software and services company with a target price of Rs 1,290, implying an upside of 22.1%. Tata Technologies has recently expanded its capabilities in internal combustion engine (ICE) to EV conversions, validated by its work in converting the Tata Tigor and Tiago models. Analysts Ruchi Mukhija, Seema Nayak, and Aditi Patil are upbeat about the company’s growth prospects, supported by its partnerships with OEMs like Agratas in the evolving EV market.

The company is shifting from a hardware-focused portfolio to one centered on software, which aims to improve the car user experience. It has formed a joint venture with BMW to set up a center in India, with a software team of 4,000-5,000 people. Mukhija, Nayak, and Patil said, “The company’s focus on AI-driven solutions should boost the productivity of its engineers and planners across product design, digital modelling, and sales processes.”

Tata Technologies has also started developing battery solutions for 2-3 wheelers, giving it a competitive edge as batteries make up about 50% of EV costs. The analyst expects revenue and net profit CAGR of 13.7% and 16% respectively over FY25-27.

2. Nippon Life India Asset Management:

Sharekhan maintains a ‘Buy’ rating on this asset management company with a target price of Rs 840, indicating an upside of 22.2%. The company saw strong growth across all its segments, with equity asset under management (AUM) now contributing 50% of total AUM compared to 45% in FY24. Nippon Life Asset Management (NAM) is working on growing its market share and boosting SIP flows. Its SIP market share has risen to 11% from 8% in FY24. Recently, the company launched a new fund offer (NFO) for the Nifty 500 Equal Weight Index Fund, which is gaining attention.

Analysts are positive about NAM’s prospects, expecting AUM growth of 22-24% over FY25-27. In Q1FY25, the company’s revenue grew 35% YoY to Rs 635.8 crore, surpassing the Trendlyne Forecaster estimates by 23.5%. The firm has managed the expected drop in revenue from SEBI’s pricing changes by growing its AUM and increasing its market share. It is focused on improving the efficiency of existing branches rather than opening new branches. 

Analysts are confident that strong retail flows and innovative passive schemes will drive NAM India's growth. They also highlighted that NAM India’s equity funds have consistently outperformed those of its peers, leading to stronger net inflows and market share gains.

3. L&T Technological Services:

Motilal Oswal maintains a ‘Buy’ rating on this IT consulting & software firm with a target price of Rs 6,300, indicating a 10.8% upside. L&T Technology Services (LTTS) has updated its go-to-market approach by focusing on fast-growing areas like mobility, sustainability, and tech, aiming to take advantage of new opportunities in these sectors.

Mobility margins increased from 14.7% in FY21 to 19.6% in FY24, while sustainability margins rose by 400 basis points, reaching 28.2% over the same period. Analysts Abhishek Pathak and Keval Bhagat said, “Margins may stay steady in the short term, but growth in mobility and sustainability could push them to the higher end of the target range over the next three years”. The company also highlighted increased  growth in the oil and energy markets, with the shift from engineering, procurement, and construction (EPC) to EPC management (EPCM) to boost industrial growth.

Pathak and Bhagat are optimistic about LTTS’s expansion into AI and embedded systems, which are expected to drive future growth and enhance innovation across its business. They project a 10.6% revenue CAGR and 12.6% PAT CAGR over FY25-26.

4. Arvind Fashions:

Anand Rathi maintains a ‘Buy’ rating on this apparels and accessories company with a target price of Rs 689, indicating a potential upside of 18.7%. Arvind Fashions reported a net profit rise of 119.7% to Rs 80 crore in FY24 while its revenue fell 4% YoY to Rs 4,472.6 crore during the year.

Analysts Vaishnavi Mandhaniya and Shreya Baheti indicate that for FY25, the company will prioritize increasing brand value through product innovation and strategic advertising. They will also focus on expanding and updating their retail network, while improving profitability by maximizing full-price sales and optimizing costs. Additionally, the company aims to become debt-free by leveraging surplus cash generated from enhanced operational efficiencies.

Mandhaniya and Baheti are optimistic about the company's prospects, anticipating 12% and 22% CAGR in sales and EBITDA, respectively, over FY25-26. They expect the RoCE to increase to 20.2% by FY26. Reflecting these improved operations, they have raised the target multiple to 13 times FY26 EV/EBITDA, up from 12 times.

5. Emami:

Khambatta Securities maintains a ‘Buy’ rating on Emami with a target price of Rs 943, suggesting a 14.4% upside. This personal products company reported a net profit rise of 10.8% YoY to Rs 152.6 crore in Q1FY25. Operating revenue increased 9.7% YoY to Rs 906.1 crore during the quarter. Analysts noted that the 8.7% YoY domestic volume growth, contributing 85% of sales, was a key driver of overall growth. Emami’s personal care brands Navratna & Dermicool saw a  27% YoY increase, while the Healthcare range grew 11% YoY due to new products and strong digital sales. However, hair care brand Kesh King experienced a 15% YoY decline.

The analysts note that despite geopolitical challenges and currency depreciation in key markets, the international business grew 10.2% YoY in Q1FY25. The strong international performance was primarily driven by double-digit growth in the MENA and South Asian Association for Regional Cooperation (SAARC) regions. 

The analysts anticipate that the company’s ongoing investment in its brands will position it favorably for the mid-to-long term. They project EBITDA margins to reach 26.7% in FY25 and 27.2% in FY26, with PAT margins expected to be 20.6% and 21.4% for the same periods, respectively.

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

(You can find all analyst picks here)

 
Trendlyne Marketwatch
Trendlyne Marketwatch
05 Sep 2024
Market closes flat, Alembic Pharma gets USFDA nod for Albendazole Tablets
By Trendlyne Analysis

Nifty 50 closed at 25,145.10 (-53.6, -0.2%) , BSE Sensex closed at 82,201.16 (-151.5, -0.2%) while the broader Nifty 500 closed at 23,762.80 (13.9, 0.1%). Market breadth is in the green. Of the 2,239 stocks traded today, 1,315 were on the uptick, and 904 were down.

Indian indices closed in the red after erasing its gains from the morning session. The Indian volatility index, Nifty VIX, fell by 1.2% and closed at 14.2 points. Data from Prime Database shows that Indian domestic companies are expected to raise over Rs 1.2 lakh crore through initial public offerings (IPOs) in the coming year. At least 22 IPOs, totaling Rs 15,530 crore, have already been approved by the market regulator SEBI.

Nifty Midcap 100 and Nifty Smallcap 100 closed in the green. Nifty Media and BSE Consumer Durables were among the top index gainers today. According to Trendlyne’s Sector dashboard, Hardware Technology & Equipment emerged as the best-performing sector of the day, with a jump of 2.7%.

Asian indices closed in mixed while European indices are trading mixed. US index futures traded lower, indicating a cautious start to the trading session. The artificial intelligence giant, NVIDIA Corp denied reports about receiving a subpoena from the US Department of Justice (DoJ) as part of an antitrust probe in its AI business.

  • Max Financial Services sees a short buildup in its September 26 futures series, with open interest increasing by 57% and a put-call ratio of 0.5.

  • PTC Industries is rising as its subsidiary, Aerolloy Technologies bags an order from Israel Aerospace Industries (IAI) for the supply of titanium cast components for aerospace applications.

  • Meghna Infracon Infrastructure rises sharply to an all-time high of Rs 568.4 as it announces the launch of “Manju Villa,” a new luxury residential project in Goregaon, Mumbai. The project is expected to generate Rs 37 crore in revenue.

  • Premier Energies surges as it receives an order worth Rs 215 crore from the Uttar Pradesh Department of Agriculture to supply, install, and commission 8,085 solar water pumping systems, along with a 5-year comprehensive warranty.

  • Easy Trip Planners surges over 10% following the board's approval to set up a wholly-owned subsidiary for manufacturing electric buses. This move is pending necessary approvals from the Ministry of Corporate Affairs.

  • Alembic Pharma rises sharply as it recieves USFDA approval for Albendazole Tablets USP, 200 mg. These tablets are used to treat neurocysticercosis created by the pork tapeworm and cystic hydatid disease of the liver, lung and peritoneum caused by the dog tapeworm.

  • Rama Steel Tubes is surging as it enters a partnership with Onix Renewable to provide steel structures and single-axis trackers for solar projects undertaken by Onix.

  • Nazara Technologies rises as it signs a memorandum of understanding (MoU) with the Government of Telangana to establish an AI Center of Excellence (AI CoE), focusing on innovation in gaming and digital entertainment.

  • Data from Prime Database shows that Indian domestic companies are expected to raise over Rs 1.2 lakh crore through initial public offerings (IPOs) in the coming year. At least 22 IPOs, totaling Rs 15,530 crore, have already been approved by the market regulator SEBI. Notable among them are SK Finance and Asirvad Micro Finance, which are projected to raise Rs 2,200 crore and Rs 1,500 crore, respectively.

  • Goldiam International surges to its all-time high of Rs 355 per share as it bags an export order worth Rs 70 crore from retailers in the US for diamond-studded gold jewellery.

  • Sapphire Foods India surges to its new all-time high of Rs 364.4 as it trades on its record date for stock split. The company subdivides its existing equity shares, with a face value of Rs 10 each, into five new shares with a face value of Rs 2.

  • Dilip Buildcon rises sharply as it emerges as the lowest bidder for a Rs 1,341 crore project by Konkan Railway Corp. The project involves constructing a twin tube unidirectional tunnel and a four-lane approach road in Kerala, on an engineering, procurement & construction (EPC) basis.

  • Arnab Banerjee, MD & CEO of Ceat, forecasts double-digit growth with margin improvement in H2FY25. He adds that the company has already raised prices by 3-4% in FY25 and plans another price hike in September due to a 50% rise in rubber prices in 2024.

  • Mahanagar Telephone Nigam (MTNL) is falling as it defaults on a Rs 5,625.5 crore payment to a consortium of banks including Union Bank of India, State Bank of India, and Punjab & Sind Bank, among others.

  • Sharekhan retains its 'Buy' call on IndusInd Bank with a target price of Rs 1,750 per share. This indicates a potential upside of 22.2%. The brokerage believes that the company's near-term business outlook remains stable, except for increased slippage in the credit card and microfinance institution (MFI) businesses, which is expected to normalise in H2FY25. It expects the bank's net interest income (NII) to grow at a CAGR of 8.3% over FY25-26.

  • Century Textiles & Industries rises as it purchases land in Kalwa, Thane, from Hindalco Industries with a Rs 400 crore corporate guarantee. This guarantee supports the acquisition, which will be paid in multiple installments.

  • The Federation of Automobile Dealers Associations (FADA) reports that the inventory of passenger vehicles (PV) has reached concerning levels. FADA President Manish Raj Singhania notes that instead of addressing the issue, PV manufacturers are increasing monthly dispatches to dealers, worsening the situation.

  • Max Financial Services falls as nearly 1.5 crore shares (4.3% stake), amounting to Rs 1,637 crore, reportedly change hands in a block deal on Thursday.

  • Sona BLW Precision Forgings is rising as its board of directors approves raising Rs 2,400 crore through a qualified institutional placement (QIP) of shares at a floor price of Rs 699 per share.

  • Zaggle Prepaid Ocean Services surges as it enters into an agreement with Blue Star to provide its Zaggle Save platform, which handles expense management and employee benefits, for Blue Star's workforce.

  • Anand Roy, Managing Director of Star Health and Allied Insurance, states that the company is exploring collaborations with insurers in Africa and West Asia for inward reinsurance opportunities via GIFT City. He adds that many customers come to India for treatment, so the firm is working on positioning the company to serve as both an inward reinsurance provider and a concierge for claim services.

  • Linde India rises sharply as it enters an agreement with Tata Steel to acquire two 1,800 tonnes per day air suppression units (ASU) for its Kalinganagar Phase 2 expansion project.

  • Glenmark Pharmaceuticals' US arm enters a settlement worth $25 million (approx. Rs 209.9 crore) with the US Department of Justice (DoJ) after conducting a False Claims Act and Anti-Kickback Statute investigation.

  • RailTel Corporation of India rises as it receives a work order worth Rs 11 crore from Northern Railways for a telecom project.

  • Suzlon Energy enters a property sale and leaseback agreement for its headquarters, One Earth, in Pune. The company sells the property to 360 ONE Alternates Asset Management for Rs 440 crore. Suzlon will lease it back for up to five years, with the option to sub-lease or license the property.

  • Nifty 50 was trading at 25,237.80 (39.1, 0.2%), BSE Sensex was trading at 82,469.79 (117.2, 0.1%) while the broader Nifty 500 was trading at 23,815.30 (66.4, 0.3%).

  • Market breadth is highly positive. Of the 1,911 stocks traded today, 1,532 showed gains, and 344 showed losses.

Riding High:

Largecap and midcap gainers today include Gujarat Fluorochemicals Ltd. (3,475.10, 9.7%), Zomato Ltd. (254.85, 4.9%) and Bosch Ltd. (34,015.05, 4.8%).

Downers:

Largecap and midcap losers today include Oil India Ltd. (658.45, -3.5%), Torrent Power Ltd. (1,689.30, -2.6%) and Dixon Technologies (India) Ltd. (12,451.15, -2.6%).

Volume Shockers

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

Top high volume gainers on BSE included Gujarat Fluorochemicals Ltd. (3,475.10, 9.7%), Caplin Point Laboratories Ltd. (2,129.70, 8.2%) and Craftsman Automation Ltd. (6,338.70, 5.3%).

Top high volume losers on BSE were Amara Raja Energy & Mobility Ltd. (1,449, -2.6%) and Max Financial Services Ltd. (1,123.80, -0.8%).

Linde India Ltd. (7,464.95, 3.7%) was trading at 7.6 times of weekly average. Sunteck Realty Ltd. (595.70, 4.5%) and PVR INOX Ltd. (1,572.80, 3.0%) were trading with volumes 5.3 and 4.3 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

46 stocks made 52 week highs,

Stocks touching their year highs included - Akzo Nobel India Ltd. (3,689.65, 3.6%), Apollo Hospitals Enterprise Ltd. (6,987.10, 0.8%) and Biocon Ltd. (386.15, 1.8%).

14 stocks climbed above their 200 day SMA including Gujarat Fluorochemicals Ltd. (3,475.10, 9.7%) and EIH Ltd. (388.80, 4.1%). 4 stocks slipped below their 200 SMA including Nestle India Ltd. (2,506.95, -1.1%) and Engineers India Ltd. (217.36, -0.5%).

Riding High:

Largecap and midcap gainers today include Gujarat Fluorochemicals Ltd. (3,524.30, 11.3%), Zomato Ltd. (254.85, 4.9%) and Avenue Supermarts Ltd. (5,308.15, 4.1%).

Downers:

Largecap and midcap losers today include Oil India Ltd. (654.90, -4.0%), Torrent Power Ltd. (1,673.40, -3.5%) and UNO Minda Ltd. (1,132.90, -3.0%).

Volume Rockets

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

Top high volume gainers on BSE included Gujarat Fluorochemicals Ltd. (3,524.30, 11.3%), Easy Trip Planners Ltd. (43.07, 10.8%) and Caplin Point Laboratories Ltd. (2,101.10, 6.7%).

Top high volume losers on BSE were Amara Raja Energy & Mobility Ltd. (1,447.50, -2.7%), Cera Sanitaryware Ltd. (9,200, -1.7%) and Max Financial Services Ltd. (1,117.25, -1.4%).

Linde India Ltd. (7,430, 3.2%) was trading at 9.0 times of weekly average. GMR Airports Infrastructure Ltd. (95.77, 2.5%) and PVR INOX Ltd. (1,580.15, 3.5%) were trading with volumes 7.3 and 7.0 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

48 stocks took off, crossing 52 week highs,

Stocks touching their year highs included - Akzo Nobel India Ltd. (3,665, 2.9%), Apollo Hospitals Enterprise Ltd. (6,934.30, 0.1%) and Biocon Ltd. (382.85, 0.9%).

17 stocks climbed above their 200 day SMA including Gujarat Fluorochemicals Ltd. (3,524.30, 11.3%) and Easy Trip Planners Ltd. (43.07, 10.8%). 4 stocks slipped below their 200 SMA including Nestle India Ltd. (2,504.90, -1.2%) and Engineers India Ltd. (217.03, -0.7%).

 
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The Baseline
05 Sep 2024
A rising preference for pricey goods among Indian customers
By Swapnil Karkare

I don’t want to sound like that building uncle (I haven’t reached the ‘uncle’ age yet) who complains about the modern world and “kids these days”.

But I have to say, life was a lot simpler for Indian consumers a few years ago. At least, it felt that way. Let's take this cup of tea, simmering by my side while I type. A cup of tea was black tea powder, milk and sugar. Dessert meant a sizzling brownie or gajar halwa. “Skincare? What’s that?”men would ask. But in the last few years, and especially after Covid, things have changed.

Now, tea can be green, fifty kinds of herbal, black, iced. Milk can be low-fat, lactose-free, A2, or oat and nut-based varieties. In addition to the usual Indian desserts, we have to resist gelato, baklava, tiramisu, parfait. And skincare? It’s a full-blown daily routine with people casually dropping names like paraben, niacinamide, and hyaluronic as if they are talking about apples, mangoes and bananas. Every decision feels complicated.

The market is all about wellness, quality and experimentation. Whether it’s food, clothes, cars, or home décor, we’re seeking premium and niche products and services.

Remember when Uber offered its ill-fated Mercedes taxi rides in India, via Uber Black? It didn’t appeal to enough customers, and Uber discontinued it in 2014. Earlier this year, Dara Khosrowshahi, the company’s CEO said, 'Indians are extremely demanding, but are not willing to pay for anything'.

But now, Uber’s premium service is growing at a much faster rate than its budget rides. That has prompted the company to bring Uber Black back. So perhaps enough Indians are willing to pay.

As India gets wealthier, a significant number of people are upgrading their lifestyle,  and firms are getting on board fast to cater to them.

In this week's Analyticks:

Going premium: The rise of the 'discerning' Indian customer

Screener: Rising stocks where Forecaster expects a high target price upside in the next 12 months

Indian pockets are getting deeper

Goldman Sachs recently noted that India’s affluent class–people earning above $10,000 (equivalent to Rs. 8.3 lakhs) per annum–rose in the last couple of decades. It jumped from 20 million in 2011 to 60 million in 2023, and accounts for 4.1% of the total population. GS expects this to reach 100 million by 2027.


People Research on India’s Consumer Economy (PRICE) expects the middle-class to increase to 61% of the total population by 2047, from 31% in 2021. The combo of upward income mobility, more choices, better tech and economic growth has already upgraded the lives of many Indians. It's visible across different pockets of the country, including smaller towns and villages. 

Plus, we have access to global trends, thanks to the internet. We are not just comparing our house to the people next door. Instead we are discussing the viral kitchen renovation we saw online.

Food brands react to premiumisation and rising health awareness

A positive fallout from Covid, if any, has been rising health awareness. It started with at-home workouts and better food habits. Consumers are now spending more on healthier options, and companies have noticed. 

Parag Milk Foods which owns a popular dairy products brand, Govardhan, also operates a premium brand called ‘Pride of Cows’, known for single-source and organic dairy products. In 2020, it forayed into premium curd and ghee. 

Tata Consumer acquired Soulfull, a health-focused millet cereals company, in 2021, and Organic India, Fabindia’s herbal tea brand, in 2024. Amul has launched a high-protein segment selling milk at Rs. 396 a litre, which is seven times the price of the Amul Taaza pouch. 

Hindustan Unilever (HUL) has launched over 70% of its new products in the premium segment in the last two years while Parle has shifted 60-65% of its new launches to the premium segment, up from 40% pre-Covid. Premium products now account for 25% of total sales for HUL, up by 300 basis points (bps) in the last three years and 12% for Nestle, up by 150 bps over last five years.

Tapping high-end consumers in fashion

“Premiumisation gives us better realisation,” Shailesh Chaturvedi, Arvind Fashions’ MD & CEO says. That’s how the company managed to improve its gross margins by 80 bps last quarter. In the previous quarter, sales of Aditya Birla Fashion & Retail (ABFRL)’s luxury segment and AjioLuxe, Reliance Retail’s online luxury shopping platform, jumped 18% and 39% YoY, respectively. Shoppers Stop’s premium brands now account for 57% of total sales, up from 54% last year.

People are becoming picky about the labels they wear, thanks to influencer marketing, global exposure and rising aspirations. Google Trends shows folks getting increasingly curious about premium products – checking out reviews, buying something because their friends or colleagues have it.


Brands are figuring out how to market high-end products to mid-premium customers. This is especially crucial in a weak season, as these consumers are less sensitive to downturns, and companies can offset lower sales in the budget segment with higher margins on premium items. India’s luxury fashion revenue is projected to cross $1.5 billion in 2024, compared to $11 billion in China and $28 billion in the US.

'Premium' is becoming a whole lifestyle

Once we have fancier clothes, taking care of them means more spending. We switch from semi-automatic machines to fully automatic, from powder soap to liquids, and fabric conditioner. This has benefited the likes of P&G and HUL. India's Electronic stores are complaining that semi-automatic washing machines have become a slow-moving inventory.

It doesn’t stop here. We need everything a notch up: accessories, skincare, shoes, phones, homes, cars and so on. Surveys shows that more Indians especially prefer buying premium in 'visible luxury' categories like smartphones, clothes, shoes, and laptops.


Banks vie for affluent customers

Recently, SBI announced it would hire 2000 executives to revive its wealth management arm and attract wealthy clients. Similarly, Axis Bank has expanded its wealth management business Burgundy Private, to Tier II and III cities.

HDFC Bank has launched the BizBlack Metal Edition Credit Card this year to tap self-employed and business people. Such premium metal credit cards have become a status symbol. A few years ago, only a few big banks offered them. But in the last few years, IndusInd Bank, IDFC First Bank, Yes Bank and AU Small Finance Bank have entered this segment.

Credit cards in general are gaining popularity as more Indians indulge in high-end shopping and air travel. The allure of loyalty points, deep discounts, and lounge access is driving growth. As of July 2024, Indians hold around 10.5 crore credit cards. In the last one year, the number of outstanding cards have increased by 16%, the transaction value has jumped 19% while the number of transactions have spiked by 38%. 

Impact on industrial goods

The rise of luxury products has also affected other sectors, boosting the demand for better-quality raw materials and intermediary products. For example, rising sales of sports utility vehicles (SUVs), electric vehicles (EVs) and luxury cars have benefitted the auto components industry. 

Strong demand for 3BHK, 4BHK and luxury homes means better quality cement and construction materials. Cement companies data reinforce this trend. Star Cement registered its highest-ever sales of premium cement in Q1 FY25 (9% of total sales). Dalmia Bharat continues to improve its premium share from 11% in FY19 to 21% in FY24 while that of Nuvoco Vistas from 34% in FY22 to 37% in FY24.

Take Apar Industries, the world’s largest aluminium and alloy conductor manufacturer. The company leads in premium quality conductors and cables used in various sectors like renewables, power, railways, EVs, etc. In the last three years, the volume of those conductors has grown by 37% CAGR while that of cables by 48%. That’s because its clients are shifting to better quality products. 

At the end, consumers are better taken care of

While I may complain about having to take so many decisions about the smallest things, it's clear that premiumization helps both businesses and consumers. But going back into 'uncle' mode - the trend also highlights the widening gap between the rich and the poor. The premium segment is still very small, even if it's fast growing.

There is an expectation however, that India's GDP growth, combined with more effective social programs, will bring more Indians into this aspirational demographic. As India continues to grow, we can expect this trend to gain ground across industries.

Screener: Rising stocks where Forecaster expects a high target price upside in the next 12 months

Fashion & lifestyle stocks see high target price upside by Forecaster

The Indian markets have been trading flat over the past week, with the Nifty 50 index rising by just 0.5%. In this environment, we look at FMCG, consumer durables, food and fashion & lifestyle stocks which have risen over the past month with a high target price upside by Trendlyne’s Forecaster. This screener shows rising stocks where Forecaster expects stock prices to gain in the next 12 months.

Notable stocks that appear in the screener are Sai Silks (Kalamandir), Raymond, Electronics Mart India, Eureka Forbes, La Opala RG, Pitti Engineering, EID Parry (India), and Arvind. 

Raymond features in the screener due to its 53.3% target price upside expected by Trendlyne’s Forecaster in the next 12 months. Analysts like Motilal Oswal believe that the textile company’s de-merger of its real estate and engineering businesses will help carve out individual growth strategies for both businesses. According to the broker, the company has created strong value by selling its FMCG business, demerging the lifestyle business, and setting up an engineering unit ‘Newco’ after the MPPL acquisition. The demerger of the lifestyle business has also helped the company’s stock price to rise by 7.9% over the past month.

Electronics Mart India comes next with a Forecaster estimated target price upside of 25% in the next 12 months. According to Anand Rathi, this specialty retail company’s revenue will grow on the back of volume growth. It expects the company to increase its profitability, driven by optimising store operations and improving inventory management.

You can find some popular screeners here.

 
Trendlyne Marketwatch
Trendlyne Marketwatch
04 Sep 2024
Market closes lower, Lupin launches Mirabegron Extended-Release tablets in the US
By Trendlyne Analysis

Nifty 50 closed at 25,198.70 (-81.2, -0.3%) , BSE Sensex closed at 82,352.64 (-202.8, -0.3%) while the broader Nifty 500 closed at 23,748.90 (-39.6, -0.2%). Market breadth is even. Of the 2,237 stocks traded today, 1,086 were in the positive territory and 1,131 were negative.

Indian indices closed in the red, with the benchmark Nifty 50 index closing at 25,198.7 points. The Indian volatility index, Nifty VIX, rose by 3.9% and closed at 14.4 points. India’s IPO fundraising reached a 27-month high in August, with 10 companies collectively raising Rs 17,048 crore. This represents the largest primary market fundraising since May 2022.

Nifty Midcap 100 and Nifty Smallcap 100 closed in the red. Nifty MidSmall Healthcare & S&P BSE Midsmallcap were among the top index gainers today. According to Trendlyne’s Sector dashboard, Retailing emerged as the best-performing sector of the day, with a jump of over 1.6%.

Asian indices closed in the red while European indices are trading in the red with an exception of Russia’s MOEX and RTSI which are trading higher. US index futures traded lower, indicating a cautious start to the trading session. Brent crude oil futures are trading in the red. A significant selloff occurred following news about the potential resolution of a dispute in Libya, which had previously halted the country's crude production and exports.

  • Relative strength index (RSI) indicates that stocks like Gujarat State Petronet, Godrej Industries, Eris Lifesciences, and Bajaj Finserv are in the overbought zone.

  • Lupin rises to its all-time high of Rs 2,282 per share as it launches Mirabegron Extended-Release tablets in the US, after receiving approval from the US FDA. These tablets are a generic equivalent of Myrbetriq Extended-Release tablets from Astellas Pharma Global Development. According to IQVIA, the market size of the drug was $1.6 billion as of July 2024.

  • SpiceJet rises as Chairman and MD, Ajay Singh, reportedly considers diluting a 10% stake and raising up to Rs 3,000 crore through qualified institutional placement (QIP). The company plans to conduct QIP roadshows in Mumbai, Hong Kong, and Singapore to attract institutional investors.

  • RITES signs a memorandum of understanding (MoU) with NBCC (India) to collaborate on consultancy and EPC projects. The partnership will focus on urban energy, water management, transport, infrastructure, and township development, covering all phases from concept to commissioning.

  • India’s services PMI rises to 60.9 in August, from 60.4 in July. However, Composite PMI remains unchanged at 60.7. The PMI reading stays above the 50 mark for the 37th consecutive month.

  • GlaxoSmithKline Pharmaceuticals is rising as it receives an income tax refund of Rs 222.2 crore from the Income Tax Department.

  • Krishna Institute of Medical Sciences rises to hit its all-time high of Rs 2,654 as the board sets September 13 as the record date for its stock split, dividing existing equity shares from one equity share with a face value of Rs 10 into five equity shares with a face value of Rs 2.

  • Samvardhana Motherson International is reportedly set to launch a share sale this month, raising up to $715 million through a Qualified Institutional Placement. The funds will be used for debt repayment, expansion, and capital expenditure.

  • Singapore’s CapitaLand Investment plans to more than double its funds under management in India to more than Singapore $14.8 billion (Rs 90,280 crore) by 2028.

  • Motilal Oswal maintains its 'Buy' call on VRL Logistics with a higher target price of Rs 660 per share. This indicates a potential upside of 12.5%. The brokerage believes that the company's sales volumes will grow due to the pick-up in agricultural and textile commodity sales driven by strong monsoons. It expects the company's revenue to grow at a CAGR of 14% over FY25-26.

  • PSU banks like Canara Bank, Indian Bank, Bank of Baroda, and Punjab National Bank fall by more than 1.5% in trading. All constituents of the broader Nifty PSU Bank index trade in the red.

  • Exicom Tele-Systems falls sharply as Late Rakesh Jhunjhunwala-backed RARE Enterprises offloads 15.9 lakh shares at an average price of Rs 348.6 per share.

  • Indian Railways launches Vande Bharat Sleeper trains, set to debut by year-end. Kinet Railway Solutions, a joint venture between Russian firm TMH and Rail Vikas Nigam (RVNL), won the international tender to produce 120 trainsets (1,920 coaches) under a contract worth $6.5 billion (Rs 54,576.5 crore).

  • IT stocks like Wipro, MphasiS, LTIMindtree, and Infosys fall more than 2% in trade. All constituents of the broader Nifty IT index are trading in the red.

  • Minda Corp rises as it signs a technology licensing agreement with China's Sanco Connecting to locally develop EV connection systems, including charging gun assemblies, power distribution units, and battery distribution units. This collaboration is expected to strengthen Minda Corp's electrical distribution systems in the growing EV market.

  • ICICI Securities retains its 'Buy' rating on Tata Technologies with a target price of Rs 1,290 per share, indicating a potential upside of 21.9%. The brokerage remains confident in the firms growth potential, citing the company's emphasis on deepening partnerships with OEM ecosystem stakeholders to accelerate the transition to a software/SDV portfolio. It expects the company's revenue to grow at a CAGR of 15.5% over FY25-27.

  • Investment banker DAM Capital Advisors submits its draft prospectus to SEBI for an initial public offering (IPO). The IPO will consist solely of an offer-for-sale (OFS) of up to 3.2 crore equity shares, with no fresh issue of shares.

  • Ecos (India) Mobility & Hospitality's shares debut on the bourses at a 16.8% premium to the issue price of Rs 334. The Rs 601.2 crore IPO received bids for 64.3 times the total shares on offer.

  • General Insurance Corporation of India falls as central government announces plans to sell 6.8% stake worth Rs 4,700 crore. This will be done through an offer for sale at an average price of Rs 395 per share.

  • VST Industries gets approval from NSE and BSE for a bonus issue of 15.4 crore equity shares with a face value of Rs 10 each. Shareholders to receive 10 new equity shares for each equity share they have in the company.

  • IPO fundraising surges to a 27-month high in August, with 10 companies raising a total of Rs 17,048 crore. This marks the largest primary market fundraising since May '22. Of the total amount, fresh issues account for 57% of the total amount, or Rs 9,715 crore, while the remaining Rs 7,333 crore was raised via offer for sale (OFS) route.

  • Westbridge AIF I sells 1.5% stake (1.1 crore shares) in AU Small Finance Bank at an average price of Rs 676.1 per share, worth approx Rs 736.6 crore, in a bulk deal on Tuesday. AU Small Finance Bank submits an application to the Reserve Bank of India on Tuesday, requesting approval for a voluntary transition from a small finance bank to a universal bank.

  • Texmaco Rail & Engineering enters an agreement with Jindal Rail Infrastructure to acquire a 100% stake in the company for Rs 614 crore. The acquisition will help Texmaco in the R&D, design, and manufacturing of commodity-specific freight wagons.

  • Indian Energy Exchange's electricity volume rises 17.1% YoY to 9,914 million units (MU) in August. IEX Green Market achieves a volume growth of 259.5% YoY to 871 MU.

  • NHPC signs a memorandum of understanding (MoU) with the Department of Energy, Gov. of Maharashtra to set up pumped storage systems and other renewable energy sources (water, solar, wind, and hybrid). The pumped storage systems in Kengadi (1,550 MW), Savitri (2,250 MW), Kalu (1,150 MW), Jalond (2,400 MW) in Maharashtra with a capacity of 7,500 MW.

  • Market sinks in morning trading. Nifty 50 was trading at 25,089.80 (-190.1, -0.8%), BSE Sensex was trading at 82,023.59 (-531.9, -0.6%) while the broader Nifty 500 was trading at 23,627.40 (-161.1, -0.7%).

  • Market breadth is moving down. Of the 1,938 stocks traded today, 597 were in the positive territory and 1,309 were negative.

Riding High:

Largecap and midcap gainers today include Biocon Ltd. (379.40, 4.8%), Hindustan Petroleum Corporation Ltd. (445.10, 4.5%) and Berger Paints (India) Ltd. (597.70, 3.6%).

Downers:

Largecap and midcap losers today include Oil India Ltd. (682.25, -6.5%), General Insurance Corporation of India (397.85, -5.6%) and Federal Bank Ltd. (187.87, -3.5%).

Volume Shockers

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

Top high volume gainers on BSE included CCL Products India Ltd. (832, 15.3%), Piramal Pharma Ltd. (213.03, 10.3%) and Jubilant Ingrevia Ltd. (742.35, 10.2%).

Top high volume losers on BSE were General Insurance Corporation of India (397.85, -5.6%), KSB Ltd. (880.15, -5.1%) and Mastek Ltd. (2,829.80, -2.6%).

Indigo Paints Ltd. (1,539.75, 6.2%) was trading at 19.4 times of weekly average. Aether Industries Ltd. (931.50, 4.6%) and BEML Ltd. (4,106.70, 6.7%) were trading with volumes 16.4 and 10.1 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

33 stocks took off, crossing 52 week highs,

Stocks touching their year highs included - Akzo Nobel India Ltd. (3,570, 1.7%), Bajaj Finserv Ltd. (1,871.90, 0.3%) and Bajaj Holdings & Investment Ltd. (11,067.70, 1.5%).

12 stocks climbed above their 200 day SMA including Prism Johnson Ltd. (182.32, 3.8%) and Medplus Health Services Ltd. (719, 2.9%). 11 stocks slipped below their 200 SMA including Punjab National Bank (112.94, -2.3%) and C.E. Info Systems Ltd. (2,025.20, -2.1%).

 
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The Baseline
04 Sep 2024
By Satyam Kumar

For the first time in six quarters, India’s quarterly GDP growth on a YoY basis came in below estimates at 6.7% for Q1FY25. This was primarily due to subdued government spending and a decline in manufacturing activity. Despite this slight moderation in short-term growth, the World Bank remains optimistic about India’s long-term growth outlook. They revised their growth projection for the current fiscal upward to 7%, from the previous estimate of 6.6%.

If we look at the equity markets, India’s influence in the MSCI Global Standard Index, also known as the World Index, has been growing rapidly. India currently holds a weightage of around 18%, second only to China, which has a weightage of approximately 25%. This marks a significant increase from levels below 10% at the end of 2020.

In this week’s Chart of the Week, we take a look at Trendlyne’s Sector Dashboard to identify the top-performing sectors over the past quarter. We focus on the top eight sectors that have delivered maximum gains, highlighting the stocks and underlying factors that have contributed the most.

Early signs of growth propel the fertilizers and software & services sectors

The fertilizers sector emerged as the best-performing sector, posting 34.1% gains over the past quarter. Average net profit growth more than doubled on a YoY basis in Q1FY25. This growth was driven by a good monsoon and initiatives taken by the government to boost the sector. For instance, the government is developing a national policy to boost local fertilizer manufacturing. The Fertilisers and Chemicals Travancore, Coromandel International and Chambal Fertilisers & Chemicals were the highest contributing stocks as they rose 41.8%, 36.6% and 28.6% respectively over the past quarter.

The software and services sector also saw significant growth, soaring 30.8% over the past quarter, driven by early signs of recovery in the IT industry. This was buoyed by demand for emerging technologies like Generative AI, machine learning and cloud transformation. Tata Consultancy Services (TCS) rose 19.7% over the past quarter driven by positive sequential growth among all verticals except media and communication. Q1FY25 marked the first positive revenue growth on a QoQ basis after four quarters of sequential decline.

IT consulting & software company Infosys saw a 34% uptick in its share price over the past quarter, accounting for 20% of the sector’s overall gain during the period. The company’s financial services segment, which contributes around 27% to the overall revenue, reported positive growth on a YoY basis after six quarters.

Retailing & consumer durables companies witness growth driven by rising demand for their products

The retailing sector has risen 29.5% over the past quarter, with Trent alone contributing 67.3% to the sector’s gains, as it surged 53.2%. Avenue Supermarts contributed 16% to the overall sector gains.

Trent posted revenue growth of 54.8% YoY to Rs 4,150 crore in Q1FY25, with net profit rising 126.3% YoY to Rs 393 crore. The company’s strategy to focus on its affordable, trend-led fashion retail store, Zudio, has been a key driver of revenue growth as consumers gravitate toward value products amid high inflation.

The consumer durables sector also recorded a 20% gain over the past quarter, supported by the “Make in India” initiative amid growing demand for electronics goods. The industry saw an average net profit growth of 45% YoY in Q1FY25. Electronics manufacturer, Dixon Technologies (India), contributed 18.4% to the overall sectoral gains after rising 42.6% over the past quarter. Similarly, Voltas, an air conditioner (AC) manufacturer gained 26.8% over the past quarter, contributing 8.5% to sectoral gains. This rise came on the back of high demand for ACs in the peak summer months from April to June.

Uptick in exports drives the pharmaceuticals & chemicals sector higher

The pharmaceuticals & biotechnology sector gained 26.7% over the past quarter. Pharmaceutical firms like Sun Pharmaceutical Industries and Lupin were the major contributors as they gained 23% and 40% respectively over the past quarter. Growth in Sun Pharma was led by global specialty sales and emerging market segments. Lupin, on the other hand, witnessed its net profit rise by 77% on a YoY basis to Rs 801 crore in Q1, driven by new product launches and improved product mix.

The chemicals and petrochemicals sector surged by 24.3% over the past quarter, as India strengthened its position in the global chemicals market. This growth was driven by increasing interest from global companies looking to source from India in a bid to de-risk their supply chains.

Leading carbon black producer, PCBL saw its stock price double over the past quarter, contributing 8% of the overall sectoral gains. This rise followed the company’s announcement to increase its global presence with capacity additions via brownfield and greenfield expansions, taking the total capacity to 10 lakh tonnes (currently, 7.7 lakh tonnes). Similarly, agrochemicals company PI Industries and specialty chemicals firm BASF India also contributed 7.7% and 6.4% to the sectoral gains over the past quarter.

Food, beverages & tobacco and FMCG companies capitalise on shifting consumption trends

The food, beverages and tobacco sector gained 21.6% over the past quarter. Cigarettes and tobacco manufacturers like ITC and Godfrey Phillips India accounted for around 50% of the sector’s gains. This growth was driven by stable cigarette taxes and enforcement against illegal trade, which helped the legal cigarette industry recover volumes. Breweries & distilleries company United Spirits also gained 25% over the past quarter driven by its premium products, and contributed over 10% to the overall sectoral gains.

Likewise, the FMCG sector gained 20.3% over the past quarter, led by moderation in raw material prices and an uptick in rural consumption. Personal products companies Hindustan Unilever and Colgate-Palmolive (India) gained significantly over the past quarter contributing over 40% to the sectoral gains.