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Trendlyne Marketwatch
Trendlyne Marketwatch
19 Aug 2024
Market closes flat, ICICI Securities maintains its 'Sell' rating on Mazagon Dock Shipbuilders'
By Trendlyne Analysis

Nifty 50 closed at 24,572.65 (31.5, 0.1%) , BSE Sensex closed at 80,424.68 (-12.2, 0.0%) while the broader Nifty 500 closed at 23,139.75 (83.3, 0.4%). Market breadth is overwhelmingly positive. Of the 2,283 stocks traded today, 1,643 were on the uptick, and 614 were down.

Indian indices closed flat after switching between losses and gains throughout the day. The Indian volatility index, Nifty VIX, fell 0.6% and closed at 14.3 points. CDSL rises to its all-time high of Rs 2,955 as its shareholders approve a bonus issue of shares to equity holders in the ratio of 1:1.

Nifty Smallcap 100 and Nifty Midcap 100 closed in the green. BSE Metal and BSE Oil&Gas were among the top index gainers today. According to Trendlyne’s Sector dashboard, Healthcare Equipment & Supplies emerged as the best-performing sector of the day, with a rise of 6.3%.

Asian indices closed mixed, and European indices are trading mixed as well. US index futures are trading marginally higher, indicating a cautious start to the trading session. Brent crude oil futures are trading lower.

  • Birlasoft sees a long buildup in its August 29 futures series, with open interest increasing by 17.9% and a put-call ratio of 0.3.

  • ICICI Securities maintains a 'Sell' rating on Mazagon Dock Shipbuilders despite margin improvements in Q1FY25 results. The brokerage is cautious due to potential revenue tapering and risks to execution timelines, citing concerns over future performance. It expects the company's revenue to grow at a CAGR of 24.9% over FY25-26.

  • EID Parry (India) approves the early retirement of Managing Director S Suresh, effective August 31. The company appoints Whole-Time Director and CEO Muthiah Murugappan as the new MD, effective September 1.

  • Marine Electricals (India) rises as its subsidiary, Narhari Engineering Works, plans to expand its manufacturing facility in Palghar. The facility will produce naval and marine motors and alternators up to a range of 1 MW.

  • Railway companies report an average decline of around 16% QoQ in their net profits in Q1FY25. The companies’ revenues also declined QoQ; BEML witnessed a 58% decrease, while Ircon and RVNL posted a fall of 39% each.

  • Allcargo Gati reports an 8% MoM increase in total volumes, reaching 1.1 lakh tonnes in July, driven by early festive season preparations. However, volumes are down 3% YoY.

  • Adani Power is reportedly in talks to buy the 600 MW Butibori power plant in Nagpur from Reliance Power's Vidarbha Industries for Rs 2,400-3,000 crore. This acquisition will help Adani connect its nearby Tiroda coal-fired power plant with the Butibori project, enhancing operational efficiency.

  • E2E Networks surges to its all-time high of Rs 2,163.9 per share as its board of directors approves the preferential issue of 24.8 lakh shares at an issue price of Rs 1,694.5 per share, totaling Rs 420.5 crore.

  • India’s domestic air traffic grows 7.3% YoY in July to 1.3 crore passengers, according to the data released by DGCA. IndiGo’s market share rises to 62% in July, while that of Spicejet falls to 3.1%. Air India and Vistara also witness a decline in market share on a MoM basis.

  • Strides Pharma falls as its subsidiary, Strides Alathur, receives a voluntary action indicated classification from the USFDA for its formulations facility in Chennai after a good manufacturing practices (GMP) inspection from April 1 to 5.

  • Zen Technologies rises as it secures a patent grant in India for its 'Mine Detection System'. The system is designed to enhance minefield reconnaissance, planning, and clearance with improved safety and accuracy.

  • Motilal Oswal downgrades Piramal Enterprises to 'Neutral' from 'Buy' with a lower target price of Rs 950 per share. This indicates a potential downside of 2.6%. The brokerage is cautious about the stock as it believes the NBFC will take another 12-15 months to reduce credit costs and improve earnings due to the decline in legacy assets under management (AUM). It expects the firm's AUM to grow at a CAGR of 24% over FY25-26.

  • UBS reiterates its ‘Buy’ rating on Zomato and raises the target price to Rs 320 from Rs 260 earlier. The brokerage says Zomato surprised positively in terms of gross merchandise value (GMV) growth, particularly the 27% YoY growth in food delivery. It lifts GMV estimates by 20-30% for quick commerce and 2-3% for food delivery over FY26-28.

  • Oil exploration & production stocks like Oil India, ONGC, Jindal Drilling & Industries, and Hindustan Oil Exploration are rising in trade as the government reduces the windfall tax on crude to Rs 2,100 per tonne from Rs 4,600 per tonne.

  • Central Depository Services rises sharply to its all-time high of Rs 2,955 as its shareholders approve a bonus issue of shares to equity holders in the ratio of 1:1. The record date for the issue is August 24.

  • Tejas Networks rises as its subsidiary, Saankhya Labs, receives a purchase order worth Rs 96.4 crore from NewSpace India to supply and install satellite communication systems for marine fishing vessels.

  • Electronics Mart India is falling after its promoters Karan Bajaj and Pavan Kumar Bajaj offload a 7.8% stake on Friday. Premchand Devarakonda, the CFO, believes they will not sell a further stake in the near term and hold 65% of the company. He highlights the firm's target of 8-10% SSSG (same-store sales growth), and 15% revenue growth going forward.

  • Media stocks like Saregama India, TV18 Broadcast, Network18 Media & Investments, and PVR INOX rise more than 2% in trade. All constituents of the broader Nifty Media index are trading in the green.

  • GMR Airports Infrastructure rises as its passenger traffic increases 8% YoY to 1.1 crore in July, while aircraft movements grow by 6% YoY to 68,755.

  • Genus Power Infrastructures surges as it receives three orders worth Rs 2,925.5 crore. The contracts involve the design, supply, and installation of 3.7 million smart meters and related infrastructure.

  • Sanjay Banka, CFO of Senco Gold, notes renewed consumer demand for gold due to the decline in customs duty. He says the company’s revenue will grow in the 18-20% range going forward, and remains confident of maintaining leadership in eastern India.

  • Techno Electric & Engineering rises sharply as it enters a partnership with Indigrid to set up two greenfield interstate transmission system (ISTS) projects. As per the partnership, Techno Electric will co-develop and invest a minority stake in Indigrid's Ishanagar Power Transmission and Dhule Power Transmission.

  • Tamilnad Mercantile Bank rises sharply as the Reserve Bank of India (RBI) approves the appointment of Salee Sukumaran Nair as the bank's Managing Director and CEO for the next three years.

  • DCX Systems surges as it receives orders worth Rs 107 crore from domestic and overseas customers to supply electronic kits and cable & wire harness assemblies.

  • Escorts Kubota is rising as it submits an investment intent to the government of Uttar Pradesh to acquire industrial land to set up a greenfield manufacturing facility with an estimated capex of Rs 4,500 crore. The company expects an annual revenue of Rs 10,000 crore from the plant at full capacity.

  • Nifty 50 was trading at 24,612 (70.9, 0.3%), BSE Sensex was trading at 80,680.25 (243.4, 0.3%) while the broader Nifty 500 was trading at 23,149.05 (92.6, 0.4%).

  • Market breadth is highly positive. Of the 2,019 stocks traded today, 1,549 showed gains, and 417 showed losses.

Riding High:

Largecap and midcap gainers today include Varun Beverages Ltd. (1,508.40, 6.1%), Voltas Ltd. (1,607.70, 4.7%) and General Insurance Corporation of India (399.60, 4.0%).

Downers:

Largecap and midcap losers today include Hindustan Zinc Ltd. (495.70, -4.7%), APL Apollo Tubes Ltd. (1,357, -3.6%) and Mahindra & Mahindra Ltd. (2,765.15, -2.7%).

Crowd Puller Stocks

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

Top high volume gainers on BSE included Caplin Point Laboratories Ltd. (1,845.95, 16.4%), Godfrey Phillips India Ltd. (5,238.60, 15.5%) and IIFL Finance Ltd. (454.05, 12.1%).

Top high volume losers on BSE were Hindustan Zinc Ltd. (495.70, -4.7%), Kalyan Jewellers India Ltd. (549.55, -4.1%) and Ujjivan Small Finance Bank Ltd. (41.29, -1.6%).

Angel One Ltd. (2,341.20, 8.4%) was trading at 8.8 times of weekly average. Bombay Burmah Trading Corporation Ltd. (2,379.90, 4.2%) and Zydus Wellness Ltd. (2,240, 0.7%) were trading with volumes 6.9 and 5.2 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

31 stocks hit their 52 week highs,

Stocks touching their year highs included - Ashok Leyland Ltd. (257.50, 0.6%), Aurobindo Pharma Ltd. (1,519.20, 1.1%) and Bombay Burmah Trading Corporation Ltd. (2,379.90, 4.2%).

20 stocks climbed above their 200 day SMA including eClerx Services Ltd. (2,698.70, 8.5%) and Elgi Equipments Ltd. (635, 5.7%). 2 stocks slipped below their 200 SMA including EIH Ltd. (371.15, -1.2%) and Nestle India Ltd. (2,505.05, -0.8%).

 
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The Baseline
16 Aug 2024
Five Interesting Stocks Today - August 16, 2024

1. Voltas:

This consumer electronics company surged 10.8% on Monday after announcing Q1 results that beat estimates on all fronts. The company reported revenue growth of 45.8% YoY, reaching Rs 5,001.3 crore in Q1FY25, surpassing Trendlyne’s Forecaster estimate by 9%. Net profit rose 158.5% YoY to Rs 334.2 crore, beating the estimate by 35.9%.

If we look at the revenue mix, the company’s cooling products segment, which contributed more than 75% to its topline, saw volume growth of 67%. The heat waves drove demand up during the peak summer months, powering the segment’s revenue higher by 51% on a YoY basis. The electro-mechanical projects segment also saw revenue growth of 40% YoY to Rs 949 crore.

Voltas saw its market share fall to 18.7% in FY24 in air conditioners, down from 21.6% in FY23. Meanwhile, its major competitor Blue Star’s market share rose by 25 bps to 13.8%.and hopes to drive it higher by 100 bps every year. 

In its latest annual report, the company projects the overall AC market to grow at a CAGR of 10% in FY25-28. Managing Director and CEO, Pradeep Bakshi, said, “The company has begun the groundwork to set up a manufacturing plant in Tamil Nadu to cater the rising demand for ACs which has grown by 75% in the past few quarters.” He highlights that this facility will have a manufacturing capacity of 2 million cooling units and focus mainly on southern and western India.

BOB Capital Markets maintains its ‘Hold’ rating on Voltas as they are optimistic about future growth, considering the under penetration of ACs in India. They are also upbeat about the growth outlook of its home appliances brand ‘Voltas Beko’ which manufactures fridges, washing machines, etc. as it achieved 12% of sales from e-commerce channels in FY24.

2. Signatureglobal (India):

This realty company has risen 296.8% since its listing on September 23 of last year and has surged 8.9% in the past week following its results announcement on August 7. The company reported a net profit of Rs 6.8 crore in Q1FY25 compared to a net loss of Rs 7.2 crore in Q1FY24. Its operating revenue grew 141.5% YoY to Rs 400.6 crore, driven by a 148% YoY rise in sales in the real estate segment. It beat Forecaster revenue estimates by 92.6%.

Revenue growth was driven by the company’s pre-sales, which reached Rs 3,120 crore in Q1FY25, marking a remarkable growth of 255% YoY with a 63% CAGR in pre-sales over FY21-24. Pradeep Kumar Aggarwal, Chairman and Whole-Time Director, said, "In the first quarter itself, we have achieved 30% of our annual pre-sales target. We are planning to launch a few projects over the coming quarters, which are likely to boost our operational targets.” The growth is primarily due to the successful launch of Phase 1 of the group housing project 'TITANIUM SPR' in Sector 71, Gurgaon – the project has accounted for 87% of sales.

The company plans to increase its launches by four-fold YoY to 32 million sq. ft. (msf) worth Rs 16,000 crore in FY25 (from Rs 4,200 crore in FY24). Some of the existing projects in the pipeline for FY25 include premium projects in Gurgaon at Sector 71, Sector 84 and Sector 37D, worth Rs 8,700 crore, as well as mid-income projects with independent floors at Sohna, Haryana with gross development value (GDV) of approximately Rs 5,800 crore. Additionally, the company will launch industrial plot projects at Sohna and Manesar in Haryana, worth Rs 1,500 crore.

In Q4FY24 Signatureglobal had launched its first premium project, Deluxe-DXP at Sector 37D in Gurugram, which sold out in 48 hours. Its second high-priced project also received a strong response, with 85% of inventory sold at launch.

Motilal Oswal has initiated a ‘Buy’ rating with a target price of Rs 2,000. The brokerage believes that the strong pre-sales growth will lead to a rapid scale-up across key parameters, such as cash flows, revenue and profitability, enhancing the company’s execution capability and future growth potential. The firm expects the growth momentum to remain intact and estimates that Signatureglobal will deliver a 35% CAGR in bookings over FY25-27.

3. FSN E-Commerce (Nykaa): 

This internet retail company rose over 1% after its net profit surged 191.9% YoY to Rs 9.6 crore in Q1FY25. Revenue rose 22.8% YoY to Rs 1,746.1 crore during the quarter, driven by growth in the beauty & personal care (BPC) and fashion segments. The company’s revenue was in line with Trendlyne’s Forecaster estimates, but profit missed estimates by 43.5%. 

During the quarter, Nykaa’s GMV (gross merchandise value) grew 25% YoY, with the BPC segment’s (constituting over 76% of the total GMV) GMV rising 28%. Nykaa’s owned brands GMV grew 47% YoY in Q1. The fashion segment (which makes up 23% of the total GMV) saw its GMV increase by 15% YoY in a highly competitive space. Analysts noted that fashion GMV growth was slower compared to 27% in Q4FY24, due to a drop in store visits, and slower demand amid fewer wedding dates during the quarter. Nykaa provided discounts across its beauty and fashion categories due to the lack of festivities, but expects discounts to moderate in Q3 and Q4 as demand picks up in the festive season.

Meanwhile, Nykaa continued to expand its retail network, with stores reaching the 200 mark. During the quarter, the company announced the acquisition of an additional 39% stake in Dot & Key Wellness for Rs 265.3 crore. With this, company's stake will increase from 51% to 90%. Earlier in March the e-commerce company entered the GCC (Gulf Cooperation Council) Beauty space, under the brand Nysaa. GCC Beauty is estimated to be a $30 billion market and the company expects this to be a significant growth driver in the future.

Nykaa increased its warehouse count to 44 in Q1, with an aim to improve its delivery timelines. Falguni Nayar said, “Given the investments we have made in the space, our key objective is to improve consumer experiences by getting the product into the consumer’s hands faster. We aim to deliver 70–80% of orders placed in major cities and 50% of other cities, on the same day or the next day by September”.

ICICI Securities maintains its ‘Add’ rating with a target price of Rs 210. The brokerage remains cautious on the company and believes success in the fashion business can be difficult given the intense competition in the category. 

4. Aurobindo Pharma: 

This pharmaceuticals company rose by 4.1% in three sessions after posting its Q1FY25 results on Saturday. Its revenue increased by 10.5% YoY to Rs 7,567 crore, in line with Forecaster estimates, driven by improvements in the US, Europe, and in rest of the world (ROW) formulations, as well as a rise in the active pharmaceutical ingredient segment. 

The company’s stock price rose by 4.5% on August 7 after it received final approval from the US FDA to manufacture and market Estradiol Vaginal Inserts. The drug is a generic equivalent of Novo Nordisk’s VAGIFEM, and has an estimated market size of $268 million. However, it pared its gains on Friday and fell 2% after the US FDA issued a warning letter for its Eugia II formulations manufacturing plant.

Aurobindo’s net profit grew by 61.5% YoY to Rs 919.2 crore, backed by reduced raw material costs. However, net profit still missed Forecaster estimates by 3.1%. The US formulations segment (which contributes to 47% of total revenue) witnessed just 8% revenue growth YoY. Growth was helped by improvements in specialty and injectables. 

Growth was muted and in single digits due to the remedial actions taken by the company after the US FDA issued an official action indicated (OAI) status on its Eugia III plant. The rest of the world (ROW) formulations experienced a 49.2% YoY rise in revenue during the quarter, led by new product launches. 

The company has been rapped on the knuckles multiple times by the FDA this year, and received multiple Form 483s or its Eugia plant in India since December 2023. This has resulted in a hit of $30-40 million in its revenue in Q4FY24 and Q1FY25, combined with a remediation cost of $8-9 million for the plant. These consistent issues have led to the company posting a 3-year revenue CAGR of 5.5%, which is lower than its competitors like Cipla (10.9%), Dr Reddy’s Laboratories (14.3%) and Sun Pharmaceutical Industries (13.2%). As a result, the company has developed the Vizag plant as a back-up and expects US FDA approval by the end of FY25. Puvvala Yugandhar, CEO of Eugia, expects the plant to be running at full capacity from Q2FY25 onwards.

Speaking on the company’s results, its Vice-Chairman and MD, K Nithyananda Reddy, says, “Our EBITDA margin remained at 21.4% and is in line with expectations. EBITDA margins are supported by stable raw material prices. We are confident in our ability to achieve our EBITDA growth target of 21-22% for FY25. We also expect the current pricing scenario in the US market to continue.” 

Post results, Axis Direct maintains its ‘Buy’ call on the company with a higher target price of Rs 1,612 per share. This indicates a potential upside of 7.3%. The brokerage remains confident about the stock due to its new launches in the US formulations and planned entry into biosimilars, peptides, and contract development & manufacturing organizations (CDMO) services. It expects the company’s revenue to grow at a CAGR of 5.7% over FY25-26.

5. Oil India:

This oil exploration and production company rose by 10.6% over the past week after the Ministry of Petroleum and Natural Gas approved a 20% premium on gas prices from new wells. Oil India plans to grow its gas output by 50% over FY25-26, building gas production infrastructure to increase domestic production.

The company’s net profit rose 32.2% YoY to Rs 1,885.8 crore, helped by inventory destocking. Revenue grew 30.9% YoY to Rs 9,350 crore in Q1FY25, beating Trendlyne’s Forecaster estimates by 70%. The Gross Refining Margin (GRM) of Numaligarh Refinery (NRL) stood at $6.4 per barrel in Q1FY25, compared to a negative margin of $15.6 per barrel in Q1FY24. 

Analysts predict that the GRM across the industry will decline to $6-8 per barrel in FY25, down from an average of $10-12 per barrel in FY24 – a narrowing discount on Russian crude and a decrease in the profit margin from selling refined products are impacting GRMs.

The company’s NRL expansion project, with a total cost of Rs 28,000 crore, has achieved 65% progress and is expected to be completed by December 2025. CFO Rupam Baura said “Once the new capacity is installed, we expect it to operate at around 50-60% in the first year, gradually ramping up to 90% by the second year. This expansion will increase the refinery’s capacity from 3 MMTPA to 9 MMTPA.” The firm plans to build a gas pipeline to connect the stranded North Brahmaputra fields which has a capacity of 3 bcm, equivalent to FY24 gas production.

Post results, Prabhudas Lilladher has upgraded the stock to ‘Buy’ with a raised target price of Rs 766. This indicates a potential upside of 13%. It remains positive about the NRL expansion, expecting it to boost gas production. Prabhudas Lilladher predicts that Oil India will see volume CAGRs of 8% for oil and 16% for gas over FY25-26.

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
16 Aug 2024
Market closes higher, Reliance Power's Q1FY25 net loss decreases 67% YoY to Rs 97.9 crore
By Trendlyne Analysis

Nifty 50 closed at 24,541.15 (397.4, 1.7%) , BSE Sensex closed at 80,436.84 (1,331.0, 1.7%) while the broader Nifty 500 closed at 23,056.50 (383.9, 1.7%). Market breadth is surging up. Of the 2,235 stocks traded today, 1,511 were in the positive territory and 693 were negative.

Indian indices closed higher after extending gains throughout the day. The Indian volatility index, Nifty VIX, fell 6.7% and closed at 14.4 points. Glenmark Pharmaceuticals closed almost 5% higher as its Q1FY25 net profit surged 126.9% YoY to Rs 340.2 crore, while revenue rose 7.2% YoY to Rs 3,275.7 crore.

Nifty Midcap 100 and Nifty Smallcap 100 closed in the green. Nifty IT and Nifty Realty closed higher. According to Trendlyne’s sector dashboard, Software & Services emerged as the best-performing sector of the day, with a rise of 2.9%.

Most European indices trade higher, except UK’s FTSE 100 and Russia’s RTSI and MOEX indices. All Asian indices closed in the green. US index futures traded higher, indicating a positive start to the trading session. UK retail sales increased by 1.4% YoY in July compared to a fall of 0.3% in June, according to the Office for National Statistics.

  • Relative strength index (RSI) indicates that stocks like Triveni Turbine, Colgate-Palmolive (India), V-Guard Industries, and Granules India are in the overbought zone.

  • Motilal Oswal initiates coverage on Signatureglobal (India) with a 'Buy' call and a target price of Rs 2,000 per share. This indicates a potential upside of 31.5%. The brokerage is positive on the stock as it believes that growth in pre-sales will lead to a scale-up in revenue and profitability. It expects the company's revenue to grow at a CAGR of 105% over FY25-26.

  • Reliance Power surges as its Q1FY25 net loss decreases 67% YoY to Rs 97.9 crore, driven by lower employee benefit expenses and reduced finance costs. Revenue rises 3.7% YoY to Rs 1,992.2 crore during the quarter. The company appears in a screener of stocks where mutual funds increased their shareholding over the past two months.

  • IT stocks like MphasiS, L&T Technology Services, Wipro and Tech Mahindra rise more than 3% in trade. All constituents of the broader Nifty IT index are also trading in the green, helping it to surge more than 2%.

  • HSBC initiates a ‘Buy’ rating on the recently listed Ola Electric with a target price of Rs 140. The brokerage believes EV manufacturing costs will decline substantially by FY27/28, while ICE (internal combustion engine) scooters may increase due to emission standards. It sees Ola as a buying opportunity citing lower costs and a positive risk-reward for its battery venture.

  • KDDL falls as its Q1FY25 net profit drops 33.1% YoY to Rs 17.3 crore. However, revenue rises 8.6% YoY to Rs 359.9 crore during the quarter, driven by higher sales in the watches, accessories and luxury items segment. The company appears in a screener of stocks with improving ROA over the past two years.

  • Foreign institutional investors sell equity worth Rs 4,870.5 crore in the market over the past week, according to Trendlyne's FII dashboard. Index options witness the highest inflow of Rs 46,332.3 lakh crore from foreign investors. Meanwhile, mutual funds are net buyers in the equity market, investing Rs 5,379.8 crore during the same period.

  • Polyplex Corp surges as it reports a net profit of Rs 53.5 crore in Q1FY25 compared to a loss of Rs 3.1 crore in Q1FY24 due to reduced expenses on stock purchases and inventory destocking. Revenue grows 8% YoY to Rs 1,685.6 crore during the quarter. The company appears in a screener of stocks where mutual funds increased their shareholding over the past two months.

  • Aditya Saraogi, CFO of Birla Corp, says H1FY25 will be challenging for the company, but expects a strong recovery in the second half. He highlights the company’s capex at Rs 800 crore for FY25, and projects debt at Rs 3,150 crore.

  • SpiceJet's net profit declines by 19.9% YoY to Rs 158.3 crore in Q1FY25 due to higher aircraft lease costs. Revenue falls by 8.3% YoY to Rs 2,077.8 crore, caused by a reduction in the air transport services segment. It shows up in a screener of stocks with declining cash flow from operations over the past two years.

  • KIOCL falls as its Q1FY25 net loss decreases 12.6% YoY to Rs 50.7 crore. Revenue declines 70.6% YoY to Rs 147.4 crore during the quarter, reportedly due to a forced shutdown of operations caused by a collapse in the national market. The company features in a screener of stocks with declining revenue over the past two quarters.

  • HDFC Life Insurance receives a tax demand order of Rs 112 crore from the Commercial Tax Officer, Chandigarh. The company plans to appeal the demand order with the Appellate Authority within the specified period.

  • Srinivasan Nadadhur, CFO of Eclerx Services, expects margin recovery over the next three quarters. He highlights the company’s target of achieving double-digit revenue growth in FY25, with margins around 24-28%. Nadadhur adds that the deal pipeline looks healthy, with a majority of opportunities in the financial services space.

  • GMR Power and Urban Infra surges as it reports a net profit of Rs 1,225.2 crore in Q1FY25 compared to a loss of Rs 205.3 crore in Q1FY24. Revenue grows 43.4% YoY to Rs 1,611.9 crore during the quarter, driven by higher sales in the power and roads segment. The company appears in a screener of stocks with increasing profits over the past four quarters.

  • Axis Direct keeps its 'Buy' call on Happiest Minds Technologies with a lower target price of Rs 930 per share. This indicates a potential upside of 21.1%. The brokerage remains positive on the stock as it is well-placed to deliver strong growth, driven by multiple long-term contracts with the world’s leading brands. It expects the company's revenue to grow at a CAGR of 13.5% over FY25-26.

  • Ola Electric Mobility surges as its revenue grows by 34.3% YoY to Rs 1,718 crore in Q1FY25, led by an improvement in the automotive business. However, its net loss expands by 30% YoY to Rs 347 crore due to higher raw material and employee benefits expenses. The company also enters the motorcycle segment by launching a Roadster portfolio in the price range of Rs 75,000 to Rs 2 lakh.

  • Analysts expect that Adani Energy Solutions could see inflows of around $250 million by August end, after MSCI announced it lifted restrictions on Adani stocks, making them eligible for inclusion in the MSCI India index.

  • Sunteck Realty surges as it reports a net profit of Rs 22.8 crore in Q1FY25 compared to a loss of Rs 6.7 crore in Q1FY24. Revenue grows 348.2% YoY to Rs 316.3 crore during the quarter, driven by increased collections and pre-sales. The company appears in a screener of stocks where mutual funds increased their shareholding over the past two months.

  • Aurobindo Pharma falls sharply as it receives a warning letter from the US FDA for its Eugia III formulation manufacturing plant. This comes after the plant received an official action indicated (OAI) status from the US FDA on the plant on May 25.

  • Electronics Mart India rises as nearly 3.1 crore shares (8% stake), amounting to Rs 712.6 crore, reportedly change hands in a block deal at an average price of Rs 232 per share.

  • Morgan Stanley maintains its ‘Overweight’ rating on Zomato with a target price of Rs 278. The brokerage notes the rising competitive intensity in the quick commerce business, which could delay profitability assumptions. It also emphasises that retaining market leadership is crucial for the company's long-term success.

  • KNR Constructions surges as its Q1FY25 net profit rises 25.9% YoY to Rs 172.6 crore, driven by lower expenses on the cost of materials, subcontracts and spreading & assortment. Revenue grows marginally by 0.4% YoY to Rs 985 crore during the quarter. The company features in a screener of stocks with improving net cash flow from past two years.

  • Glenmark Pharmaceuticals' Q1FY25 net profit surges 126.9% YoY to Rs 340.2 crore, owing to lower raw material and finance costs. Revenue rises 7.2% YoY to Rs 3,275.7 crore, helped by improvements in the Indian, European, and rest of the world (ROW) markets. It appears in a screener of stocks outperforming their industries in the past quarter.

  • Power Mech Projects surges as it receives a Rs 114.3 crore contract from Coastal Energen for the operation and maintenance of the 1,200 megawatt (MW) Mutiara Thermal Power Plant.

  • Paras Defence and Space Technologies surges as it secures a Rs 305 crore order from Larsen & Toubro to manufacture and supply 244 Sight-25HD EO (electro-optics) systems, including extended warranty and logistics support, for their CIWS program.

  • The market opened on an upbeat note. Nifty 50 was trading at 24,342.40 (198.7, 0.8%), BSE Sensex was trading at 79,726.41 (620.5, 0.8%) while the broader Nifty 500 was trading at 22,855.15 (182.5, 0.8%).

  • Market breadth is highly positive. Of the 1,944 stocks traded today, 1,590 were gainers and 319 were losers.

Riding High:

Largecap and midcap gainers today include PB Fintech Ltd. (1,691.95, 7.5%), MphasiS Ltd. (2,910.95, 7.1%) and Aditya Birla Capital Ltd. (216.09, 6.2%).

Downers:

Largecap and midcap losers today include Hindustan Zinc Ltd. (519.90, -9.1%), Varun Beverages Ltd. (1,421.85, -2.8%) and Adani Energy Solutions Ltd. (1,085.30, -2.6%).

Volume Shockers

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

Top high volume gainers on BSE included Zensar Technologies Ltd. (797.60, 7.7%), Nippon Life India Asset Management Ltd. (686.85, 7.5%) and MphasiS Ltd. (2,910.95, 7.1%).

Top high volume losers on BSE were Hindustan Zinc Ltd. (519.90, -9.1%) and J B Chemicals & Pharmaceuticals Ltd. (1,966.50, -0.1%).

RHI Magnesita India Ltd. (627.35, 6.0%) was trading at 59.7 times of weekly average. Firstsource Solutions Ltd. (307.70, 6.0%) and L&T Technology Services Ltd. (5,207.55, 5.9%) were trading with volumes 9.3 and 6.9 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

20 stocks overperformed with 52 week highs, while 1 stock tanked below their 52 week lows.

Stocks touching their year highs included - CCL Products India Ltd. (683.65, 2.9%), Colgate-Palmolive (India) Ltd. (3,534.65, 1.9%) and Coromandel International Ltd. (1,759.75, 4.3%).

Stock making new 52 weeks lows included - CreditAccess Grameen Ltd. (1,222, 3.8%).

21 stocks climbed above their 200 day SMA including Piramal Enterprises Ltd. (947.35, 7.4%) and RHI Magnesita India Ltd. (627.35, 6.0%). 10 stocks slipped below their 200 SMA including Olectra Greentech Ltd. (1,608.40, -2.1%) and KIOCL Ltd. (407.45, -1.9%).

 
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The Baseline
14 Aug 2024
Which stocks did superstar investors sell in Q1FY25?
By Melissa Koshy

Investments by superstar investors like RARE Enterprises, Ashish Kacholia, Sunil Singhania, and Vijay Kedia are closely tracked by investors for valuable insights into the market. Their buys and sells help investors identify interesting sectors and stocks. Here we look at the sells made by these superstar investors during Q1FY25.

The chart below shows the changes in superstar investors' current portfolio net worth. Note that net worth reflects both changes in current holdings as well as new buys and sells. 

Some superstar investors see their net worth rise in Q1FY25

Previously, we looked at the key superstar buys in Q1FY25. Now, let's analyse their sells. During the latest quarter, most superstars went on a selling spree as many stocks hit sky-high valuations, and adjusted their holdings in key sectors. The following chart shows their biggest sells during this period. 

Biggest sells by superstars in Q1FY25

RARE Enterprises makes minor stake sales 

Rakesh Jhunjhunwala’s portfolio made some cuts, but with a cautious knife. The portfolio, currently managed by Rekha Jhunjhunwala and investment firm RARE Enterprises, cut minor stakes in multiple companies. The portfolio’s net worth grew 4.5% to Rs 50,586.1 crore after Q1FY25.

Jhunjhunwala’s portfolio pares minor stakes in multiple companies

In the April-June quarter, the late big bull’s portfolio cut a 0.2% stake in internet software company Nazara Technologies, and now holds an 8.37% stake. Its share price rose by 37.3% in the past year, underperforming its industry by 71.1 percentage points. This is the third consecutive quarter the portfolio has reduced its stake in the company. RARE also cut a 0.2% stake in edible oils maker Agro Tech Foods, taking the holding to 7.3%. Previously, it held an 8.1% stake in the firm since Q1FY24 before reducing it to 7.5%. 

During the latest quarter, RARE reduced a minor 0.1% stake each in bank stocks — Federal Bank, and Karur Vysya Bank. It now holds 2.5% and 4.27%, respectively, in the banks. 

RARE Enterprises also sold a 0.1% stake each in other industrial goods firm Raghav Productivity Enhancers, other financial services company Crisil, capital markets stock Geojit Financial, and pharmaceuticals firm Jubilant Pharmova during the quarter. The portfolio now holds 5%, 5.36%, 7.2%, and 6.57%, respectively, in these companies. 

Ashish Kacholia goes on a selling spree

Does Ashish Kacholia know something that we don’t, about the stock market? His net worth fell by 15.9% to Rs 2,847.1 crore after Q1FY25 as he pulled back on multiple stocks. The investor, who is usually a bullish player in midcap and smallcap stocks, reduced his stakes inAdor Welding to below 1% from 4.2% in Q4FY24. The Industrial goods company’s share price rose by 16.8% in the past year underperforming its sector by 128.9 percentage points. 

Kacholia sells stakes in multiple companies

The marquee investor also reduced his stake in the non-ferrous metals company Gravita India to below 1% compared to 2.2% in Q4FY24. This company is in a strong PE sell zone with its promoter holdings decreasing from 66.48% in Q4FY24 to 63.37% in Q1FY25.

Kacholia also cut his stake to below 1% each in apparels & accessories company Vaibhav Global, finance company Ugro Capital, industrial machinery company HLE Glascoat, iron & steel products retailer Shankara Building Products, and restaurants chain Barbeque-Nation Hospitality.

He reduced his stakes in other companies – 0.7% in Shaily Engineering Plastics, 0.5% in Garware Hi-Tech Films, 0.4% in Repro India, 0.1% in NIIT Learning Systems, 0.2% in Ami Organics and 0.3% in Aditya Vision. He also sold 0.8% each in PCBL and Sastasundar Ventures during the quarter. A likely reason for Kacholia’s multiple sells is the soaring valuations in the midcap and smallcap space. 

Sunil Singhania’s Abakkus Fund adjusts holdings in key sectors

Sunil Singhania’s Abakkus Fundsaw its net worth fall 10.3% to Rs 2,741 crore after Q1FY25. The fund reduced its stake in Route Mobile to below 1% during the quarter, after holding a 2.4% stake in the internet services & software company in Q4FY24. Its share price has risen marginally by 0.7% over the past year, underperforming its industry by 107.6 percentage points. It also reduced its stake in PSP Projects, a construction and engineering company, to below 1% from 1.5% in Q4FY24.

Singhania trims his stake in Route Mobile and PSP Projects to below 1%

Singhania’s fund also trimmed its stake in IIFL Securities by 0.2%, now holding 3.1% of the capital markets company. It sold a 0.1% stake in Mastek and now holds 3% in the IT consulting & software company. 

Abakkus cut a 0.09% stake in the construction & engineering company HG Infra Engineering. It now holds 1.35% compared to 1.44% in Q4FY25. Its share price rose by 60.3% in the past year, underperforming its industry by 33 percentage points. 

Vijay Kedia cuts stakes in three companies

Vijay Kedia reduced his holdings in three companies in Q1FY25, with stakes below 1% in two companies. His net worth dropped 12.8% to Rs 1,615.2 crore since the end of Q1FY25. During the quarter he reduced his stake to below 1% in auto parts & equipment manufacturer Talbros Automotive Components and in electric utilities company Reliance Infrastructure from 1% each in Q4FY24. Over the past year, its share price increased by 28.8%, underperforming its industry by  82.

Kedia reduces stakes in Talbros Auto, Reliance Infra to below 1%

Kedia also cut his stake in Patel Engineering to 1.4% from 1.6% in Q4 FY24. The ace investor had added the construction & engineering company to his portfolio in Q4FY23, by buying a 1.3% stake. The company’s share price has fallen by 7.6% over the past quarter.

Dolly Khanna cuts stakes in four companies 

Dolly Khannareduced her holdings in four companies in Q1FY25, including one where her stake fell below 1%. Her net worth has increased by 4.2% to Rs 608.4. crore since the end of Q1FY25. During the quarter, she reduced her stake in Salzer Electronics (an other electrical equipment/ products manufacturer) to below 1%, from the 1% held in Q4FY24. She added the firm to her portfolio in Q2FY24 by buying a 1.1% stake but reduced her holding to 1% in Q3. Over the past year, Salzer has risen by 195.6%, underperforming its industry by 978.4 percentage points. 

Dolly Khanna pares stakes in Salzer Electronics, Deepak Spinners and others

During the April-June quarter, Dolly Khanna cut her stake in Deepak Spinners by 0.7% to 1.04%. She held a 1.77% stake in the small-cap textiles company in Q4FY24. 

The ace investor reduced 0.1% stake each in National Oxygen and Control Print, taking her holding to 1.16% and 1.1%, respectively, in the industrial gases and computer hardware companies. 

Porinju Veliyath cuts stakes in two companies in Q1

Porinju V Veliyath’s net worth increased by 17.3% to Rs 224.2 crore after Q4FY24. During the quarter, he reduced his stakes in two companies. Porinju cut a 0.2% stake in Mitsu Chem Plast, taking his holding to 1.5%. He added the containers & packaging firm to his portfolio in Q4FY24 by buying a 1.7% stake. Over the past year, the company’s share price has declined by 25.2%, underperforming its industry by 85.8 percentage points. 

Porinju pares stakes in Kaya and Mitsu Chem

During the latest quarter, the marquee investor reduced a minor stake (0.1%) in special consumer services company Kaya, taking his holding to 2.9%. He has consistently held a 3% stake for a year since Q4FY23. The company has an expensive valuation with a score of 19.7, but a moderately bullish momentum score of 63.7. 

Mohnish Pabrai reduces stake in a realty company to below 1% 

Mohnish Pabrai’s net worth fell by 81.1% to Rs 92.5 crore after Q1FY25, and publicly holds just one company currently. During the quarter, he reduced his holding in Sunteck Realty to below 1%, from 2.2% in Q4FY24.  He consistently held a 6.7% stake in the company since Q1FY23, before reducing it to 2.2% in the March quarter. The realty company’s share price has risen by 58.5% over the past year but underperformed its industry by 60.4 percentage points.

Pabrai trims stakes in two companies in Q1

During Q1, Pabrai cut his stake in Edelweiss Financial Services by 3.9%, taking his holding to 1.2%. He held a 5.1% stake in the other financial services company in Q4FY24. Over the past quarter, Edelweiss has risen by 9.9%, underperforming its industry’s 22.9% growth.

 
Trendlyne Marketwatch
Trendlyne Marketwatch
14 Aug 2024
Market closes flat, Mazagon Dock Shipbuilders net profit surges 121.5% YoY to Rs 696.1 crore
By Trendlyne Analysis

Nifty 50 closed at 24,143.75 (4.8, 0.0%) , BSE Sensex closed at 79,105.88 (149.9, 0.2%) while the broader Nifty 500 closed at 22,672.65 (-33.2, -0.2%). Market breadth is overwhelmingly negative. Of the 2,225 stocks traded today, 732 were gainers and 1,471 were losers.

Indian indices closed flat after switching between losses and gains throughout the day. The Indian volatility index, Nifty VIX, fell 4.5% and closed at 15.4 points. SJVN closed 3.7% higher as its Q1FY25 net profit rose 31.4% YoY to Rs 357.1 crore. Revenue grew 29% YoY to Rs 870.4 crore during the quarter.

Nifty Midcap 100 and Nifty Smallcap 100 closed in the red. Nifty Media and Nifty Metal closed lower. According to Trendlyne’s sector dashboard, Software & Services emerged as the best-performing sector of the day, with a rise of 1.5%.

European indices traded higher, while Asian indices closed mixed. US index futures traded higher, indicating a positive start to the trading session. Confectionery and food giant Mars reportedly nears a deal to acquire Pringles and Pop-Tarts maker Kellanova in a deal worth more than $29 billion.

  • Money flow index (MFI) indicates that stocks like Ajanta Pharma, Triveni Turbine, Natco Pharma, and Lupin are in the overbought zone.

  • Mazagon Dock Shipbuilders rises sharply as its revenue increases 8.5% YoY to Rs 2,172.8 crore in Q1FY25. Net profit surges 121.5% YoY to Rs 696.1 crore during the quarter due to lower material costs. It shows up in a screener of stocks outperforming their industry price change during the quarter.

  • Muthoot Finance's revenue grows 28.9% YoY to Rs 4,473.9 crore in Q1FY25, beating the Forecaster estimates by 95.5%. Net profit increases 14.5% YoY to Rs 1195.7 crore during the quarter, helped by a deferred tax credit of Rs 38 crore. It appears in a screener of stocks with increasing profits every quarter for the past four quarters.

  • Gabriel India surges as its Q1FY25 net profit rises 37.1% YoY to Rs 57.6 crore. Revenue grows 17.5% YoY to Rs 805.7 crore during the quarter, driven by higher sales in the utility vehicles and van segments. The company appears in a screener of stocks where mutual funds increased their shareholding over the past two months.

  • Alok Gupta, Managing Director of Allied Blenders & Distillers, highlights the company’s target to achieve double-digit volume growth in FY25. He projects margins in the 11-12% range in FY25. Gupta says the firm aims for revenue of Rs 5,500 crore in FY27, with margins over 15%.

  • Swan Energy's net profit grows by 87.7% YoY to Rs 138.9 crore in Q1FY25, helped by lower finance costs. Revenue rises by 43.7% YoY to Rs 1,161.6 crore, owing to improvements in the energy and distribution & development segments. It features in a screener of stocks with increasing net cash flow and cash from operating activities.

  • Nazara Technologies' revenue declines 1.6% YoY to Rs 250.1 crore in Q1FY25 due to weak performance in the gaming and Ad tech segments. However, net profit rises by 16% YoY to Rs 22.6 crore during the quarter, owing to lower cost of stock in trade. It appears in a screener of stocks with quarterly net profit growth and increasing profit margin YoY.

  • MTAR Technologies falls as its Q1FY25 net profit drops 78.2% YoY to Rs 4.4 crore, driven by high employee benefits and inventory expenses. Revenue declines 15.9% YoY to Rs 128.3 crore during the quarter. The company appears in a screener of stocks with declining profits for the past two quarters.

  • Piramal Enterprises declines sharply after CLSA downgrades its rating to ‘Underperform’ with a lower target price of Rs 860. The brokerage notes negative credit costs and one-off gains have supported the company’s operating profit performance. It highlights that some segments of the retail book continue to see a deteriorating 90-plus days past due (DPD) trend, and believes this may add pressures to growth and credit costs.

  • KR Choksey downgrades Sun Pharmaceutical Industries to 'Accumulate' from 'Buy' with an unchanged target price of Rs 1,827 per share. This indicates a potential upside of 5.1%. The brokerage is cautious about the company due to its slow growth rate in the US and the rest of the world (ROW) segments combined with the QoQ volume decline in Winlevi. It expects the firm's revenue to grow at a CAGR of 10.4% over FY25-26.

  • HEG falls sharply as its revenue declines 14.9% YoY to Rs 571.5 crore in Q1FY25 due to reduced graphite production. Net profit decreases by 83.4% YoY to Rs 23 crore during the quarter. The company announces a 1:5 stock split, pending member approval. It has also received a show cause notice for Rs. 282.3 crore IGST refund and penalty.

  • Manappuram Finance falls sharply as its Q1FY25 net profit misses Forecaster estimates by 4.4%, despite growing by 11.8% YoY to Rs 554.6 crore. Revenue rises by 22.1% YoY to Rs 2,511.9 crore due to improvements in the gold loan and microfinance segments. It appears in a screener of stocks with increasing provisions in recent results.

  • India’s WPI inflation eases to 2% in July from a 16-month high of 3.4% in June, driven by reduced prices of food articles, manufactured products, mineral oils, and crude petroleum & natural gas.

  • Gensol Engineering's consortium with Matrix Gas and Renewables secures an order worth Rs 450 crore to set up a 300 MW plant. This includes a previously awarded 63 MW in the first tranche of the SECI tender under the production-linked incentive (PLI) scheme to set up a hydrogen electrolyser manufacturing plant.

  • Marksans Pharma rises sharply as its revenue grows 18.1% YoY to Rs 590.6 crore in Q1FY25. Net profit rises 29.3% YoY to Rs 88.8 crore during the quarter, helped by inventory destocking. It appears in a screener of stocks where FII/FPI and institutions are increasing their shareholding.

  • Hero MotoCorp's Q1FY25 net profit rises 47.3% YoY to Rs 1,045.9 crore. Revenue grows 15.4% YoY to Rs 10,210.8 crore during the quarter, driven by a sharp recovery in market share in the 125 cc segment, fueled by the new Xtreme 125 cc model. The company appears in a screener of stocks with an improving book value per share over the past two years.

  • Companies like Tata Steel, NMDC, and MOIL are falling after the Supreme Court rules that states can recover past dues on mineral rights from April 1, 2005 in terms of royalty and tax from mining companies. The tax on mineral wealth will be applied retrospectively and companies can pay taxes in a staggered manner over 12 years.

  • FSN E-Commerce Ventures is rising as its net profit surges 192.1% YoY to Rs 9.6 crore in Q1FY25. Revenue increases 22.7% YoY to Rs 1,753.4 crore due to improvements in the fashion and beauty segments. The company plans to buy an additional 39% stake in Dot & Key for Rs 265 crore.

  • Bombay Dyeing executes definitive agreements with Goisu Realty for the Phase-II sale of its Worli land, receiving Rs 537.8 crore in total.

  • SJVN surges as its Q1FY25 net profit rises 31.4% YoY to Rs 357.1 crore. Revenue grows 29% YoY to Rs 870.4 crore during the quarter, driven by higher energy generation from hydro and solar power. The company appears in a screener of stocks with an improving book value per share for the last two years.

  • JP Morgan maintains its ‘Overweight’ rating on Rainbow Childrens Medicare with a target price of Rs 1,530. The brokerage says Q1 revenue aligned with estimates, while EBITDA exceeded expectations. It notes the decline in ARPOBs (average revenue per occupied bed) due to a high base, but highlights the uptick in occupancy at mature and new hospitals.

  • Ahluwalia Contracts plunges as its net profit declines by 38.5% YoY to Rs 30.6 crore in Q1FY25 due to higher raw material, construction, sub-contracting, employee benefits, and finance costs. However, revenue grows by 20.7% YoY to Rs 930.1 crore, owing to a rise in the contract work segment. It shows up in a screener of stocks with declining net cash flow.

  • Vedanta's board approves the sale of up to 11 crore equity shares, representing a 2.6% stake in Hindustan Zinc, through an offer for sale (OFS).

  • NBCC (India) rises sharply as its net profit grows by 39.2% YoY to Rs 104.6 crore in Q1FY25. Revenue increases 11.3% YoY to Rs 2,197.8 crore, driven by improvements in the project management consultancy (PMC), real estate, and the engineering, procurement & construction (EPC) segments. It appears in a screener of stocks with increasing return on capital employed (RoCE) over the past two years.

  • Apollo Hospitals is rising as its net profit surges 81.9% YoY to Rs 315.5 crore in Q1FY25. Revenue grows by 15.2% YoY to Rs 5,122.8 crore, driven by improvements in the Apollo Health & Lifestyle, healthcare services, and pharmacy distribution & digital health segments. It features in a screener of stocks with increasing revenue for the past eight quarters.

  • Nifty 50 was trading at 24145.20 (6.2, 0.0%) , BSE Sensex was trading at 79065.22 (109.2, 0.1%) while the broader Nifty 500 was trading at 22707.15 (1.4, 0.0%)

  • Market breadth is in the red. Of the 1918 stocks traded today, 850 were on the uptick, and 1018 were down.

Riding High:

Largecap and midcap gainers today include One97 Communications Ltd. (538.80, 6.5%), PB Fintech Ltd. (1,574.05, 6.2%) and UNO Minda Ltd. (1,107, 5.6%).

Downers:

Largecap and midcap losers today include NMDC Ltd. (210.94, -6.0%), Suzlon Energy Ltd. (76.77, -5.0%) and Oil India Ltd. (658.90, -4.1%).

Volume Rockets

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

Top high volume gainers on BSE included Chennai Petroleum Corporation Ltd. (965.70, 7.9%), PB Fintech Ltd. (1,574.05, 6.2%) and SJVN Ltd. (142.13, 3.7%).

Top high volume losers on BSE were Piramal Enterprises Ltd. (882.40, -10.5%), Hero MotoCorp Ltd. (5,072.45, -3.3%) and SKF India Ltd. (5,099.70, -2.2%).

V-Guard Industries Ltd. (519.10, -0.2%) was trading at 11.4 times of weekly average. ICICI Securities Ltd. (805.65, 2.5%) and Apollo Hospitals Enterprise Ltd. (6,515.85, -1.1%) were trading with volumes 6.1 and 5.3 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

8 stocks took off, crossing 52 week highs, while 4 stocks hit their 52 week lows.

Stocks touching their year highs included - Ajanta Pharma Ltd. (3,045.90, -4.1%), Oil India Ltd. (658.90, -4.1%) and Trent Ltd. (6,438.35, 0.9%).

Stocks making new 52 weeks lows included - IDFC First Bank Ltd. (70.60, -1.1%) and RBL Bank Ltd. (205.67, -4%).

8 stocks climbed above their 200 day SMA including One97 Communications Ltd. (538.80, 6.5%) and Mahindra Lifespace Developers Ltd. (587.55, 4.5%). 28 stocks slipped below their 200 SMA including Piramal Enterprises Ltd. (882.40, -10.5%) and NMDC Ltd. (210.94, -6.0%).

 
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The Baseline
14 Aug 2024
Five stocks to buy from analysts this week - August 14 2024
By Ruchir Sankhla

1. Maruti Suzuki India:

KRChoksey maintains a ‘Buy’ rating on this cars and utility vehicles manufacturer with a target price of Rs 14,148, indicating a potential upside of 15.3%.  The stock is currently in a strong PE buy zone. The company saw a strong performance in Q1FY25, where its net profit rose 48.9% YoY to Rs 3,759.7 crore, driven by cost reduction initiatives, favorable commodity prices and foreign exchange rate. Revenue grew 10.6% YoY to Rs 36,839.9 crore.

Analyst Unnati Jadhav says, “The growth was primarily driven by strong export sales which increased by 11.6% YoY, with Jimny being the highest exported vehicle during the quarter.” She notes the company’s plans to double its production to 4 million vehicles by FY30-31 from the current level of 2.2 million.

Jadhav anticipates that stronger rural markets will drive increased demand for hatchbacks, as the company aims to boost exports and CNG sales. Revenue, EBITDA, and adjusted PAT are expected to grow at a CAGR of 11.5%, 9.4%, and 12.6%, respectively, over FY25-FY26, as margins continue to improve.

2. Coal India:

ICICI Direct makes a ‘Buy’ call on this coal mining and production company with a target price of Rs 650 and a potential upside of 24.6%. The company reported a net profit of Rs 10,959.5 crore for Q1FY25, up 37.5% YoY. This increase was driven by lower material costs, reduced employee benefits, and decreased inventory. Its revenue grew 2.2% YoY to Rs 38,349.2 crore. Coal India is classified a strong performer as shown by its DVM score.

Analyst Shashank Kanodia and Manisha Kesari note that the company is expanding its portfolio into new areas, including coal gasification through JV agreements with BHEL and GAIL, investments in thermal power such as Mahanadi Basin Power and exploring acquisitions of critical mineral assets both domestically and internationally. They remain optimistic about Coal India, citing strong volume growth prospects, ongoing diversification into emerging sectors, a healthy net cash positive balance sheet, and dividend yield of approximately 5%. Analysts expect coal production to grow at an 11% CAGR from FY25 to FY26 to 950 metric tonne (MT) by FY26, and anticipate a 7% CAGR growth in sales and PAT over the same period.

3. Krishna Institute of Medical Sciences (KIMS):

Edelweiss retains a ‘Buy’ recommendation on Krishna Institute of Medical Sciences (KIMS) setting a target price of Rs 2,560, suggesting a potential upside of 15.2%. This healthcare facilities company posted a 7.2% YoY increase in net profit to Rs 86.6 crore and a 13.8% YoY rise in revenue to Rs 693 crore in Q1 FY25. Analysts Thakur Ranvir Singh and Pawan Bhatia say,”Growth in revenue was helped by 21% YoY rise in ARPOB, 8% YoY growth in IP volume and 10% rise in OP volume”.

KIMS plans to add approximately 1,800 beds in two years through various greenfield and brownfield plans. Analysts highlight that the company is on track to commence operations at its Nasik unit (300-beds) and newly acquired 200-bed multi-specialty Queen’s NRI Hospital (QNRI) at Vizag in Q2FY25, which is expected to improve performance in H2FY25.

Singh and Bhatia believe the company has a strong expansion plan for the next 3 years, anticipating an increase in the total bed capacity to approximately 6,300 in FY27 from 3,975 in FY24. They retain their FY25 estimates, with a revenue, EBITDA, PAT CAGR of 23%, 22%, 19% respectively for FY 25-26. They also revised theirFY26 revenue, EBITDA and PAT forecasts upwards  by 6%, 5%, 8% due to the addition of new beds.

4. Oil And Natural Gas Corporation:

Emkay maintains a ‘Buy’ rating on this exploration and production company with a target price of Rs 360. This indicates an upside of 7.2%. The company has received approval for the restructuring of its ONGC Petro Additions (OPaL) project. The government has approved a Rs 10,501 crore investment in OPaL, including financial support for raw materials, with gas priced up to 20% above the Administered Price Mechanism (APM).

ONGC reported a revenue growth of 19% YoY to Rs 1,69,562.3 crore in Q1FY25, but missed the Forecaster estimates by 5.8%. The revenue increase was driven by higher crude sales, while lower gas output impacted results. ONGC Videsh (OVL) saw costs reduce due to a shift in royalty payments from cash to kind, though production remained unchanged.

Analysts Sabri Hazarika, Harsh Maru, and Arya Patel are optimistic about ONGC’s investment in green energy, targeting 10GW by CY30, and its plans to expand gas production capacity by developing new wells throughout the year. They anticipate positive developments in premium gas pricing and a boost from increased capex for Mozambique projects.

5. Tech Mahindra:

Geojit BNP Paribas upgrades this IT consulting firm to ‘Buy’ with a target price of Rs 1,645, indicating a potential upside of 9.4%. The company’s EBITDA margin improved by 180 bps, and lower interest expenses supported net profit growth in Q1FY25. However, revenue dropped 1.2% YoY to Rs 13,006 crore, impacted by the communications segment.

The company introduced TechM VerifAI, a framework for validating AI systems, and developed over 100 AI solutions. During the quarter, Tech Mahindra expanded its workforce by 2,165 employees, and continued strategic initiatives like Project Fortius and Turbocharge to enhance margins. The analyst says, “The company's investment in AI and its workforce expansion, coupled with cost-saving initiatives, should  yield enhanced margins and drive growth in the manufacturing segment”. Additionally, they anticipate stable demand in the BFSI segment, as the company continues to explore new opportunities with existing clients. 

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

(You can find all analyst picks here

 
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The Baseline
13 Aug 2024
COTW: When it comes to the Olympic race, India lags in medals to GDP ratio
By Satyam Kumar

The Paris 2024 Summer Olympics ended with Indian athletes winning a total of six medals (one silver, five bronze) –three in shooting, and a medal each in hockey, wrestling, and athletics (javelin). 

Successful Olympic athletes like Abhinav Bindra and Neeraj Chopra have won golds in the past and have become national heroes, inspiring others. Rifle shooter Abhinav Bindra was the first Indian to win an Olympic gold medal in an individual event at Beijing in 2008 and was the only one to do so for over a decade before Neeraj’s javelin triumph at Tokyo in 2020.

Last year in October, Prime Minister Modi expressed hopes that India would host the Olympics in 2036, pledging to leave no stone unturned in the effort. However, there is still a lot of work to be done if we want to get a piece of the global sports action.

The International Monetary Fund in May projected that India will surpass Japan to become the 4th largest economy in the world in terms of nominal GDP in 2025. With a growth rate of over 7%, India will very likely become the third largest economy in the coming years. However our performance in the Olympics is a different story. 

India stands last in terms of number of medals to GDP ratio in the 2024 Olympics, at 0.05 medals for every $100 billion in GDP.

In this week’s Chart of the Week, we explore why India lags so far behind in global sports. Countries like the United States, China, and Australia dominate the medal tally, and even smaller developing nations like Jamaica, Mexico, and Brazil are far ahead of us.

An Olympic medal is a rarity in India: one per 250 million people

India ranks last in medal density among the most populous nations

In 2023, India beat China to become the most populous country in the world, with over 1.4 billion people. More than half of the population is under the age of 25, and the average age in India is 29 years, compared to 37 in China and 48 in Japan. 

You would imagine that this kind of demographics would produce hundreds of thousands of talented Indian athletes. 

But despite  having the highest youth population, only 117 Indians went to compete in the Olympics this year. China in comparison, sent around 388 people who participated in a total of 33 events. From the above chart, it is clear that qualifying for the Olympics events and winning medals is very rare for India. If we look at the tally this year, India has won only one medal per 250 million people, which translates to 0.004 medals per million people. Meanwhile, countries like the United States, Japan and Brazil won 0.38, 0.36 and 0.10 medals respectively per million people.

Sports: A neglected field in terms of government spending

Budget allocation for sports has been below 0.1% for the past decade

The percentage of the total budget allocated to the Ministry of Youth Affairs and Sports, which oversees sports, games, and youth welfare programs, is abysmal. For over a decade, this allocation has remained below 0.1% of the total budget. This underinvestment could be a major reason why a country with the largest youth population ranks 71 in terms of medal tally in the 2024 Olympics.

Over the past decade, the government has launched various initiatives to promote sports in India. To enhance Olympic and Paralympic performance, the Ministry of Youth Affairs and Sports introduced the Target Olympic Podium Scheme (TOPS) in 2014. It ensures that a ‘core group of athletes’ have all necessary, personalised support in terms of foreign exposure, hiring of specific coaches, training and competition abroad.

In 2018, another program was launched by the name “Khelo India Program” which aimed at reviving the sporting culture in India at the grassroots. It has been more than five years since the programme was launched, and has seen participation of around 20,000 athletes. 3,000 athletes identified as Khelo India Athletes are currently training at Khelo India Academies, and are given an out-of-pocket allowance of Rs 10,000 per month.

A lot of noise, but not enough money: China spends ten times more than India on sports

At the outset, it looks like the government has only revamped the names of various sports programs but changed little else. For instance, Sports Authority of India (SIA) centers have been renamed Khelo India Academies, but little to no effort have been put into increasing the budget allocation.

India has aims to become a developed nation by 2047. To compete globally at a level that reflects our rising economic strength, India needs substantial investment in infrastructure and athlete development. In the FY25 Budget, the government has allocated Rs 3,442 crore for the development of sports, which translates to approx. $410 million. In comparison,, China spent around $3.2 billion in 2023, and has plans to spend around $1 billion in 2024.

The cause of our medal drought is clear: sports in India is severely underfunded and has failed to  keep up with other nations. The government's ambitious goal of hosting the Olympics in 2036 may not materialze if we don’t do a big overhaul, in funding as well as infra and training for young athletes. 

To excel on the global stage and nurture our talent, the Indian government needs to step up to the plate. Else we will continue to finish dead last in the race.

 
Trendlyne Marketwatch
Trendlyne Marketwatch
13 Aug 2024
Market closes lower, Dilip Buildcon's net profit rises 1,036% to Rs 139.8 crore in Q1FY25
By Trendlyne Analysis

Nifty 50 closed at 24,139 (-208, -0.9%) , BSE Sensex closed at 78,956.03 (-692.9, -0.9%) while the broader Nifty 500 closed at 22,705.80 (-210.1, -0.9%). Market breadth is moving down. Of the 2,251 stocks traded today, 561 showed gains, and 1,659 showed losses.

Markets closed lower after falling throughout the day. The Indian volatility index, Nifty VIX, rose 1.9% and closed at 16.2 points. JSW Steel's board has approved the acquisition of a 66.7% economic interest in the Australian mining company M Res NSW for $120 million (Rs 1,007.5 crore).

Nifty Smallcap 100 and Nifty Midcap 100 closed in the red. Nifty Financial Services and S&P BSE Telecom were among the top index losers today. According to Trendlyne’s Sector dashboard, Textiles Apparels & Accessories emerged as the best-performing sector of the day, with a rise of 0.3%.

Asian indices closed in the green. European indices are trading mixed. US index futures are trading in the green except Small Cap 2000 which is trading in the red, indicating a positive start to the trading session. Brent crude oil futures are trading lower.

  • Relative strength index (RSI) indicates that stocks like Granules India, Ajanta Pharma, Suzlon Energy, and Colgate-Palmolive (India), are in the overbought zone.

  • Godrej Industries' Q1FY25 net profit rises 81.1% YoY to Rs 322.5 crore due to reduced inventory costs. However, revenue falls 5.7% YoY to Rs 4,247.93 crore during the quarter. The company appears in a screener of stocks where mutual funds increased their shareholding over the past two months.

  • Hindalco Industries' net profit grows by 25.3% YoY to Rs 3,074 crore in Q1FY25, helped by inventory destocking, lower power & fuel, and finance costs. Revenue increases by 7.6% YoY to Rs 57,437 crore, driven by improvements in the Novelis, upstream aluminium, downstream aluminum, and copper segments. It appears in a screener of stocks with improving cash flow from operations over the past two years.

  • Dilip Buildcon's revenue grows 7.3% YoY to Rs 3,134.2 crore in Q1FY25, driven by strong improvements in EPC projects & road infra maintenance segment. Net profit rises 1,036% YoY to Rs 139.8 crore helpd by inventory destocking and a deferred tax credit of Rs 75.3 crore. It appears in a screener of stocks with quarterly net profit growth and increasing profit margin YoY.

  • Happiest Minds Technologies falls as its Q1FY25 net profit drops 29.1% QoQ to Rs 51 crore due to non-recurring expenses and higher amortization & financing costs from recent acquisitions. However, revenue rises 11.1% QoQ to Rs 463.8 crore during the quarter. The company appears in a screener of stocks with improving operating cash flow over the past two years.

  • StoxBox anticipates Hero MotoCorp to deliver strong Q1FY25 results. The brokerage forecasts an expansion in EBITDA margins due to the company's focus on enhancing its portfolio. Hero MotoCorp is expected to capitalize on its strategic advancements in the 125cc and 400cc+ segments, and make steady progress in the electric two-wheeler market through new launches in the mid and mass segments this fiscal year.

  • IPCA Laboratories rises to its all-time high of Rs 1,402.6 per share as its net profit grows by 18.1% YoY to Rs 192.2 crore in Q1FY25. Revenue increases by 29.6% YoY to RS 2,113.2 crore, helped by an improvement in the the Indian and international markets. It shows up in a screener of stocks with low debt.

  • Dixon Technologies rises sharply as it acquires a 50.1% majority stake in Ismartu India for Rs 276 crore, completing the first tranche of the deal. This acquisition makes Ismartu a subsidiary of Dixon Technologies.

  • Man Industries' Q1FY25 net profit declines by 21.1% to Rs 19.1 crore due to higher inventory and employee benefits expenses. Revenue falls by 6.8% YoY to Rs 768.8 crore, caused by a decrease in the manufacturing segment. The company plans to set up a 0.4-0.5 million tonnes (MT) pipe manufacturing and coating facility in Saudi Arabia with an estimated capex of Rs 600 crore.

  • India's weight in the Morgan Stanley Capital International (MSCI) EM Index has increased from approximately 8% in 2020 to 20%, driven by recent gains in the Sensex and Nifty 50. Seven stocks, including Rail Vikas Nigam (RVNL), Dixon Technologies, and Vodafone Idea, were added to the MSCI Global Standard Index during the August rejig. However, Bandhan Bank exited the index.

  • Inox Wind surges as it receives an order for 51 MW from Everrenew Energy to supply its latest 3 MW wind turbine generators (WTGs) and provide post-commissioning multi-year operations and maintenance (O&M) services.

  • Olectra Greentech surges as its revenue grows 45.3% YoY to Rs 313.9 crore in Q1FY25, driven by improvements in the insulator and e-vehicle segments. Net profit rises 10.9% YoY to Rs 20.7 crore during the quarter. It appears in a screener of stocks where mutual funds increased their shareholding in the last quarter.

  • Axis Direct downgrades SAIL to 'Hold' from 'Buy' with a lower target price of Rs 130 per share. The brokerage is cautious about the stock due to the delays and capex overruns for its hot metal expansion project. It expects the company's revenue to grow at a CAGR of 2.4% over FY25-26.

  • Morgan Stanley Capital International (MSCI) announces the resumption of normal operations and the implementation of its index review, including adjustments to the number of shares (NOS), foreign inclusion factor (FIF), and domestic inclusion factor (DIF) for Adani Group and its associated securities. This decision comes amid ongoing scrutiny of the Adani Group companies following allegations from Hindenburg Research.

  • Brainbees Solutions' shares debut on the bourses at a 40% premium to the issue price of Rs 465. The Rs 4,193.7 crore IPO has received bids for 12.2 times the total shares on offer.

  • Campus Activewear falls as its Q1FY25 net profit drops 19.4% YoY to Rs 25.4 crore. Revenue declines 4.1% YoY to Rs 339.2 crore during the quarter, impacted by weak demand in rural and semi-urban areas due to the general elections. The company appears in a screener of stocks with improving operating cash flow over the past two years.

  • Hindustan Copper rises sharply as its Q1FY25 net profit surges by 139.8% YoY to Rs 113.4 crore, helped by inventory destocking. Revenue grows by 30.1% YoY to Rs 500.4 crore during the quarter. It features in a screener of stocks with growth in operating profit and increasing operating profit margin (YoY).

  • Goldman Sachs downgrades Bata India to ‘Sell’ with a lower target price of Rs 1,300. The brokerage notes the company’s deteriorating SSSG growth trend, and the lag in distribution channel sales. It adds that Bata’s initiatives are taking longer to yield results, and highlights muted sales growth.

  • Unicommerce eSolutions' shares debut on the bourses at a 117.6% premium to the issue price of Rs 108. The Rs 276.6 crore IPO has received bids for 168.3 times the total shares on offer.

  • JSW Steel's board approves the acquisition of M Res NSW for $120 million (Rs 1,007.5 crore) through its wholly-owned subsidiary, JSW Steel (Netherlands). The company will acquire a 66.7% economic interest in M Res NSW by subscribing to its non-voting Class B shares.

  • Senco Gold rises sharply as its net profit surges by 85.3% YoY to Rs 51.3 crore in Q1FY25, driven by inventory destocking. Revenue grows by 7.7% YoY to Rs 141.6 crore during the quarter. It shows up in a screener of stocks with book value improving over the past two years.

  • India’s CPI inflation eases to a five-year low of 3.5% in July, led by the base effect. Food inflation moderates to 5.1%, compared to 8.4% in June. Rural inflation falls to 4.1% in July, while urban inflation stands at 3%.

  • NMDC's Q1FY25 net profit rises 19.3% YoY to Rs 1,970.8 crore, driven by reduced inventory and lower royalty and levy expenses. Revenue grows marginally by 0.4% YoY to Rs 5,414.2 crore during the quarter. The company features in a screener of stocks with improving net cash flow over the past two years.

  • Housing and Urban Development Corp is rising as its net profit grows by 25.2% YoY to Rs 557.8 core in Q1FY25, owing to lower employee benefits and deferred tax expenses. Revenue increases by 18.7% YoY to Rs 2,197.2 crore during the quarter. It appears in a screener of stocks with improving revenue for the past four quarters.

  • Jubilant Industries surges as its Q1FY25 net profit rises 25.7% YoY to Rs 25.8 crore due to lower material costs. Revenue grows 2.7% YoY to Rs 358.1 crore during the quarter, driven by higher sales from the performance polymers & chemicals segment. The company appears in a screener of stocks with the highest recovery from 52-week lows.

  • Vodafone Idea is rising as its net loss contracts 18% YoY to Rs 6,432.1 crore in Q1FY25, owing to lower network, IT outsourcing, license, spectrum usage, marketing, content, customer acquisition, and finance costs. Revenue grows by 0.8% YoY to Rs 10,764.6 crore during the quarter. It features in a screener of stocks outperforming their industries in the past quarter.

  • Nifty 50 was trading at 24339 (-8, 0.0%) , BSE Sensex was trading at 79552.51 (-96.4, -0.1%) while the broader Nifty 500 was trading at 22927.80 (12.0, 0.1%)

  • Market breadth is in the green. Of the 1974 stocks traded today, 1173 were on the uptrend, and 761 went down.

Riding High:

Largecap and midcap gainers today include PB Fintech Ltd. (1,482.65, 3.8%), Oil India Ltd. (687.35, 3.0%) and Aurobindo Pharma Ltd. (1,505.80, 3.0%).

Downers:

Largecap and midcap losers today include Zydus Lifesciences Ltd. (1,175.45, -6.0%), Hindustan Zinc Ltd. (580, -5.6%) and Deepak Nitrite Ltd. (2,847.80, -5.6%).

Volume Rockets

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

Top high volume gainers on BSE included Triveni Turbine Ltd. (787.05, 12.3%), Kaynes Technology India Ltd. (4,670, 8.6%) and Olectra Greentech Ltd. (1,653.40, 7.2%).

Top high volume losers on BSE were Aarti Industries Ltd. (621.15, -15.5%), AIA Engineering Ltd. (4,547.20, -5.5%) and Cello World Ltd. (882.15, -3.0%).

Godrej Industries Ltd. (888.65, -1.2%) was trading at 18.0 times of weekly average. ICICI Securities Ltd. (785.90, 3.8%) and JBM Auto Ltd. (1,903.45, 3.4%) were trading with volumes 8.3 and 7.3 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

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

Stocks touching their year highs included - Ajanta Pharma Ltd. (3,180, 3.7%), Aurobindo Pharma Ltd. (1,505.80, 3.0%) and Cipla Ltd. (1,583.45, -0.2%).

Stock making new 52 weeks lows included - Equitas Small Finance Bank Ltd. (75.15, -3.0%).

7 stocks climbed above their 200 day SMA including Olectra Greentech Ltd. (1,653.40, 7.2%) and Shree Renuka Sugars Ltd. (47.36, 2.6%). 22 stocks slipped below their 200 SMA including Aarti Industries Ltd. (621.15, -15.5%) and Navin Fluorine International Ltd. (3,277.05, -5.5%).

 
Trendlyne Marketwatch
Trendlyne Marketwatch
12 Aug 2024
Market closes lower, Voltas surged as its Q1FY25 net profit grew by 158.5% YoY
By Trendlyne Analysis

Nifty 50 closed at 24,347 (-20.5, -0.1%), BSE Sensex closed at 79,648.92 (-57.0, -0.1%) while the broader Nifty 500 closed at 22,915.85 (-7.7, 0.0%). Market breadth is in the red. Of the 2,280 stocks traded today, 1,067 were on the uptick, and 1,191 were down.

Indian indices erased their gains from the afternoon session and closed flat. The volatility index, Nifty VIX, rose 3.5% and closed at 15.9 points. Voltas surged to its all-time high of Rs 1,568.7 per share as its Q1FY25 net profit grew by 158.5% YoY to Rs 334.2 crore. Revenue rose 45.8% YoY to Rs 5,001.3 crore during the quarter.

Nifty Midcap 100 and Nifty Smallcap 100 closed in the green. Nifty Realty and BSE Consumer Durables closed higher. According to Trendlyne’s sector dashboard, Hardware Technology & Equipment emerged as the best-performing sector of the day, with a rise of 2.2%.

European indices traded mixed, while most Asian indices closed in the green. US index futures traded mixed, indicating a cautious start to the trading session. Crude prices continued to rise for the fifth consecutive session with the US Crude Futures rising 0.9% and Brent Crude growing 0.7% due to sustained geopolitical tensions in the Middle East.

  • Votas sees a long buildup in its August 29 futures series, with open interest increasing by 39.1% and a put-call ratio of 0.6.

  • ONGC rises as the government approves its Rs 10,501 crore investment in ONGC petro additions (OPaL), including feedstock support with gas priced up to 20% above the administrative price mechanism (APM) price.

  • Kaveri Seed surges to its all-time high of Rs 1,180 per share as its net profit grows by 5.8% YoY to Rs 289.5 crore in Q1FY25, helped by lower inventory costs and tax expense. Revenue rises by 8.6% YoY to Rs 812.4 crore during the quarter. It features in a screener of stocks with increasing net cash flow and cash from operating activities.

  • Usha Martin's Q1FY25 net profit rises 3.4% YoY to Rs 104.1 crore. Revenue grows 1.5% YoY to Rs 826.4 crore, driven by higher sales from the wire and wire ropes segment. The company features in a screener of stocks with improving cash flow from operations over the past two years.

  • Adani stocks decline following allegations by Hindenburg Research that SEBI Chairperson Madhabi Puri Buch and her husband held undisclosed investments in obscure offshore funds in Bermuda and Mauritius. According to the report, these are the same entities allegedly used by Vinod Adani to inflate stock prices artificially.

  • CE Info Systems rises sharply as its revenue rises 13.5% YoY to Rs 101.5 crore in Q1FY25. Net profit grows 12.2% YoY to Rs 35.9 crore during the quarter due to lower hardware material costs. It appears in a screener of stocks with increasing revenue every quarter for the last four quarters.

  • ICICI Direct keeps its 'Buy' call on Eicher Motors with a higher target price of Rs 5,750 per share. This indicates a potential upside of 19.2%. The brokerage is confident on the stock due to its efforts for two-wheeler premiumisation which will help sustain top-line growth. It expects the company's revenue to grow at a CAGR of 10.6% over FY25-26.

  • Bharat Dynamics falls sharply as its revenue declines 35.8% YoY to Rs 191.2 crore in Q1FY25, missing Forecaster estimates by 65.6%. Net profit drops 82.7% YoY to Rs 7.2 crore during the quarter. It appears in a screener of stocks with PE higher than their respective industry PE.

  • Sanjeev Sharma, Managing Director of ABB India, highlights the company’s robust project pipeline, consisting of projects from core, railways, and metros sectors. He expects double-digit growth in CY24. Sharma says the company missed its Rs 150-200 crore revenue target due to events like elections and budget.

  • Amara Raja Energy & Mobility rises sharply as its wholly-owned subsidiary, Amara Raja Advanced Cell Technologies (ARACT), reportedly signs a memorandum of understanding (MoU) with Piaggio Vehicles. The MoU aims to develop and supply LFP (lithium iron phosphate) lithium-ion (Li-ion) cells and chargers for Piaggio's electric vehicles.

  • Voltas surges to its all-time high of Rs 1,568.7 per share as its Q1FY25 net profit grows by 158.5% YoY to Rs 334.2 crore. Revenue rises 45.8% YoY to Rs 5,001.3 crore, helped by improvements in the unitary cooling products, electro-mechanical projects & services, and engineering products & services segments. It shows up in a screener of high volume and high gain stocks.

  • Suven Pharmaceuticals' revenue falls 33.6% YoY to Rs 230.7 crore in Q1FY25, missing Forecaster estimates by 26.7%. Net profit declines 49.6% YoY to Rs 60.8 crore during the quarter. It appears in a screener of stocks where mutual funds decreased their shareholding in the last quarter.

  • Ahead of the MSCI India Standard Index rejig, JM Financial expects eight stock additions, including Dixon Technologies, Railway Vikas Nigam (RVNL), and Vodafone Idea, among others. The brokerage anticipates the eight stocks will likely attract passive inflows worth $1.239 billion.

  • Anup Engineering surges as it secures two critical orders totaling over Rs 100 crore, with approximately 90% of the value coming from a European EPC contractor for a project in the UAE.

  • Shipping Corp of India surges as its net profit grows by 69.9% YoY to Rs 291.5 crore in Q1FY25. Revenue rises by 27% YoY to Rs 1,558.4 crore due to improvements in the liner, build carrier, tanker, and technical & offshore segments. It features in a screener of stocks with rising net cash flow over the past two years.

  • Balkrishna Industries' revenue rises 25.7% YoY to Rs 2,714.5 crore in Q1FY25, beating Forecaster estimates by 7.8%. Net profit grows 47.6% YoY to Rs 490 crore during the quarter. It appears in a screener of stocks with quarterly net profit growth and increasing profit margin YoY.

  • Reports suggest that CVC Capital Partners has outbid EQT to become the top contender for Aavas Financiers. The current promoters, Kedaara Capital and Partners Group were looking to exit their eight-year investment, which has yielded a 6x return. They hold around 26.5% stake in Aavas, with Kedaara Capital owning a marginally higher share than Partners Group.

  • Inox Wind rises sharply as it posts a net profit of Rs 51.8 crore in Q1FY25, compared to a net loss of Rs 64.4 crore in Q1FY24. Revenue grows by 84.7% YoY to Rs 650.5 crore due to an increase in the order book by 254% YoY during the quarter. It appears in a screener of stocks with growth in operating profit and margin (YoY).

  • Aurobindo Pharma's Q1FY25 net profit rises 61% YoY to Rs 919.2 crore due to lower material costs. Revenue increases 10.5% YoY to Rs 7,567 crore during the quarter. The company features in a screener of companies with increasing revenue over the past four quarters.

  • Siemens' Q1FY25 net profit grows by 26.8% YoY to Rs 577.7 crore, led by lower inventory costs. Revenue grows by 7.1% YoY to Rs 5,360.3 crore, driven by improvements in the smart infrastructure, mobility, and digital industries segments. It features in a screener of stocks with negative to positive growth in sales and profit with strong price momentum.

  • Abhijit Roy, Managing Director of Berger Paints, notes the limited impact of new entrants. He highlights the 2.5% price hike taken by the company, and expects improved margins going forward. Roy projects a volume growth of around 14-15% in H2, and market share in the 20-21% range.

  • CESC surges as its Q1FY25 net profit rises 8.9% YoY to Rs 378 crore. Revenue declines 12.8% YoY to Rs 4,863 crore during the quarter, driven by increased power demand amid strong manufacturing activity and scorching summer weather. The company features in a screener of stocks with zero promoter pledge.

  • Jubilant Foodworks rises to its 52-week high of Rs 621.7 per share as its net profit surges by 93% YoY to Rs 55.8 crore in Q1FY25. Revenue grows by 45.1% YoY to Rs 1,950.2 crore due to increased sales from Domino's and new customer additions. It appears in a screener of stocks with high momentum scores.

  • Mazagon Dock Shipbuilders rises as it secures a contract worth Rs 4,676 crore from Oil and Natural Gas Corp (ONGC) for wellhead platforms and associated pipeline project (DSF-II) on an EPC reimbursable basis.

  • Bajaj Consumer Care falls as its Q1FY25 net profit drops 19.7% YoY to Rs 37.1 crore. Revenue declines 9% YoY to Rs 245.9 crore during the quarter due to planned one-time market hygiene corrections in wholesale discounts and rationalization of schemes. The company appears in a screener of stocks with increasing revenue every quarter for the past three quarters.

  • Nifty 50 was trading at 24,268.70 (-98.8, -0.4%), BSE Sensex was trading at 79,466.87 (-239.0, -0.3%) while the broader Nifty 500 was trading at 22,790.40 (-133.1, -0.6%).

  • Market breadth is sharply down. Of the 1,958 stocks traded today, 547 were gainers and 1,372 were losers.

Riding High:

Largecap and midcap gainers today include Rail Vikas Nigam Ltd. (575.85, 11.1%), Voltas Ltd. (1,582.55, 10.8%) and Jubilant Foodworks Ltd. (651.35, 8.8%).

Downers:

Largecap and midcap losers today include Balkrishna Industries Ltd. (2,844.65, -7.0%), Life Insurance Corporation of India (1,074.35, -5.2%) and Astral Ltd. (1,937.90, -4.6%).

Volume Shockers

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

Top high volume gainers on BSE included Inox Wind Ltd. (208.55, 19.7%), Rail Vikas Nigam Ltd. (575.85, 11.1%) and Voltas Ltd. (1,582.55, 10.8%).

Top high volume losers on BSE were Sun TV Network Ltd. (818.80, -10.7%), Balkrishna Industries Ltd. (2,844.65, -7.0%) and Bharat Dynamics Ltd. (1,343.95, -6.3%).

Star Cement Ltd. (214.17, 7.7%) was trading at 11.3 times of weekly average. PNC Infratech Ltd. (484.60, 4%) and Jubilant Foodworks Ltd. (651.35, 8.8%) were trading with volumes 9.2 and 9.1 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

28 stocks took off, crossing 52 week highs, while 1 stock tanked below their 52 week lows.

Stocks touching their year highs included - AIA Engineering Ltd. (4,813.35, 2.2%), Ajanta Pharma Ltd. (3,069.90, 2.4%) and Aurobindo Pharma Ltd. (1,461.80, 0.8%).

Stock making new 52 weeks lows included - Equitas Small Finance Bank Ltd. (77.46, -1.6%).

9 stocks climbed above their 200 day SMA including Redington Ltd. (199.41, 4.9%) and NMDC Ltd. (229.63, 3.7%). 13 stocks slipped below their 200 SMA including Aster DM Healthcare Ltd. (385.50, -5.5%) and Mishra Dhatu Nigam Ltd. (420.70, -5.0%).

 
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The Baseline
09 Aug 2024
Five Interesting Stocks Today - August 09, 2024

1. BSE:

This stock market exchange saw an 8.4% surge on Thursday following the announcement of its Q1 results after market hours on Wednesday. The firm posted a revenue growth of 2.5X YoY at Rs 674 crore in Q1FY25, surpassing Trendlyne's Forecaster estimate by 14.5%. Adjusted net profit rose 2.6X YoY to Rs 265 crore, beating estimates by 14%.

In Q1FY25, transaction charges, which make up more than half of the total revenue, soared 5.6X YoY to Rs 366 crore. Revenue from equity derivatives jumped to Rs 242 crore, compared to just Rs 1.6 crore in Q1FY24, thanks to a relaunch in May last year. However, the currency derivatives segment faltered as revenue plunged by 85% YoY, following the RBI mandate requiring traders to demonstrate foreign currency exposure to participate in this segment.

BSE shares had surged 6% on July 31 after SEBI proposed seven key amendments to curb the FnO frenzy. SEBI had observed that most traders lose money on expiry day trading, where premiums are low but risk is high. One of the amendments aims to limit both NSE and BSE to only one weekly expiry contract each. 

Analysts anticipate these changes to impact FnO volumes. But they also forecast a significant market share gain for BSE from its current 20% level, since these amendments are expected to impact NSE more severely, as it currently holds 80% market share with four weekly expiry contracts on different days, compared to BSE's two.

MD & CEO Sundararaman Ramamurthy said, “BSE’s foray into single stock derivatives space from July 1, 2024, with a mid-month expiry, has gained considerable traction.” He highlights that performance has exceeded his expectations, with a total turnover of Rs 341 crore in July.

Motilal Oswal reiterates its ‘Neutral’ rating on BSE due to the uncertainty surrounding potential new regulations for FnO. However, they view the relaunch of BSE derivatives products last year as a game-changer and expect the recent launch of stock derivatives to drive further market share gains for BSE.

2. Adani Wilmar:

This edible oils company rose by 10.6% over the past week, after Adani Enterprises approved a scheme of arrangement to demerge its food FMCG business and transfer it to Adani Wilmar, along with investments in Adani Commodities LLP.

Adani Wilmar reported a net profit of Rs 313.2 crore in Q1FY25 compared to a net loss of Rs 78.9 crore in Q1FY24, helped by inventory destocking. Revenue grew 9.6% YoY to Rs 14,168.6 crore, during the quarter. The firm missed Trendlyne’s forecaster estimates for revenue by 1.6%, but beat net profit estimates by 81.9%. 

Adani Wilmar got a boost from a notable increase in volumes, with edible oils up 12% YoY and Foods & FMCG up 42% YoY. The company increased its market share by 60 bps to 19% in the edible oil business, with its brand "Fortune" leading the segment. The firm’s market share in edible oil is nearly 1.5 times that of its next competitor, Patanjali Foods, dominating in North and Central India. CFO Shrikant Kanhere said, “We expect 30-40% YoY annual volume growth for the next three years once our Gohana plant is operational, enabling a more efficient in-house supply chain.”

The company has broadened its product range with "Pehli Dhaar," a cold-pressed mustard oil, and is utilizing its established distribution network to boost food product sales and reach more customers. It plans to cover 50,000 rural towns by March 2025 to enhance product distribution. Adani Wilmar also aims to expand its export business, focusing on specialty chemicals and branded food products, to explore new markets.

KRChoksey maintains its “Accumulate” rating with an upgraded target price of Rs 382.4, indicating a potential upside of 6.5%. The brokerage highlights favorable commodity prices, improved margins, and a scaling up of the food portfolio as drivers for future growth.

3. Godrej Consumer Products:

This personal products maker has declined more than 3.9% in the past two days after announcing its Q1FY25 results. Its revenue declined 3% YoY to Rs 3,409 crore in Q1, missing Forecaster estimates by 2.4%. This was largely due to a 25% YoY decline in GAUM ( Godrej Africa, USA, and Middle East).  Net profit grew 41.4% YoY to Rs 450.7 crore during the quarter, but missed estimates by 8.2%. 

International markets (which make up around 37% of the total revenue), saw Godrej Consumer’s Indonesia business outperform, with a 7% YoY growth in volumes. The growth was led by its hair colour business, and the newly launched Stella Electric Diffuser. However, Africa, US & Middle East business volumes declined due to devaluation of Nigeria’s naira currency, and the Red Sea crisis. 

In the domestic business, the homecare segment (which contributes around 38% of revenue) grew 8% YoY led by air fresheners and liquid detergent. However, the household insecticide business was impacted by severe heatwaves. The management highlighted that Goodknight Agarbatti is scaling up and gaining market share from unorganised incense stick players. Meanwhile, the personal care segment (contributing around 58% of the revenue) sales grew by 6% YoY. 

Meanwhile, Godrej Consumer Products announced its entry into the pet care industry, by creating a subsidiary, Godrej Pet Care, with an expected cash investment of Rs 500 crore planned over the next five years. The production will begin in Q2FY26, and the company will have a manufacturing agreement with Godrej Agrovet, operating in the animal feed and agribusiness sectors. Aasif Malbari, the CFO acknowledged the jump in pet ownership in India, saying,  “Pet foods is a Rs 5,000-crore category with the potential for strong double-digit growth for the next few decades”.

Post results, Motilal Oswal maintains its ‘Buy’ rating with a target price of Rs 1,700. The brokerage believes the implementation of disruptive innovations, the introduction of access packs, expansion into new growth categories, and increased advertising expenditure will contribute to a consistently robust growth trajectory. 

4. Carborundum Universal:

This industrial products company fell by over 10.8% over the past week. It announced its results on July 31s – the company’s net profit fell by 0.2% YoY to Rs 112.5 crore in Q1FY25, while its revenue fell by 2.4% YoY, mainly on the back of declines in electro minerals and ceramics segment revenues. The firm missed trendlyne’s forecaster estimates for revenue by 5.4% and for net profit by 14.7%. The stock shows up in a screener for stocks in the PE sell zone.

Electro minerals are the basic raw material used in the manufacturing of abrasives and for surface preparation in tile and paint industries. Carborundum Universal manufactures these, as well as industrial ceramics like Zirconia Ceramic, which is used in the food industry for grinding applications. The company’s consolidated electro-minerals sales struggled in Q1, falling by 9% YoY to Rs 380 crore due to a drop in price realization by 4-6% from Chinese dumping. Consolidated ceramics sales fell by 6% YoY to Rs 270 crore, primarily due to delays in refractory orders. 

China has cast a shadow on Carborundum Universal’s numbers. Analysts note that the firm has reported a muted set of results since the last four quarters on account of competition with Chinese abrasives, loss of a customer in engineered ceramics, and the decline of the Russian ruble, which negated the gains of growth in subsidiaries’ revenues.

Sridharan Rangarajan, MD of the firm, commented: “For FY25, in the previous call  we said that full-year consolidated sales growth could be 9% to 11% and consolidated sales could be Rs. 5,100 to 5,200 crore. We are confident of delivering the same. We expect growth of 11% to 12% in Abrasives, 12% to 14% in Ceramics as told earlier. We maintain the same stands for Electro Minerals as well, a growth of 5% to 6%. Abrasive India growth would be 9% to 11%. We expect the second half to be better. All the projects that we plan to execute are in line and we are confident of what we guided in the last call.”

Despite management optimism, ICICI Securities has downgraded the stock to a “Sell” rating with a target price of Rs 1,450. The brokerage highlights that due to its well-diversified and large product basket, the firm is a key beneficiary of the increased focus on hi-tech manufacturing in the domestic market. However, with near-term headwinds in mind, the brokerage has maintained Its target price and now values the stock at 36x FY26 EPS.

5. Torrent Power:

This electric utilities company surged 16.5% to its all-time high of Rs 1,908 per share on 31 July, the day after its Q1FY25 results. The company’s net profit grew by 88% YoY to Rs 972.2 crore, beating Forecaster estimates by 50.1% while its operating revenue rose by 22.9% YoY to Rs 9,110 crore, largely driven by higher merchant power sales of 1.7 billion units (vs. 400 million units YoY).

During the quarter, the company reported a sales growth of 65% YoY in the generation segment from Rs 2,229.3 crore in Q1FY24 to Rs 3,677.6 crore in Q1FY25. Its transmission and distribution segment grew 4.7% YoY to Rs 6,934.3 crore while its renewables segment grew 5.5% YoY.

The company also signed a memorandum of understanding (MoU) with AIA Engineering and Torrent Urja 16 to supply renewable energy. This agreement involves developing and setting up hybrid projects with a capacity of up to 33 MW in Gujarat. The power will be supplied to AIA's production units through open access from the TU16 project.

Saurabh Mashruwala, Chief Financial Officer of the company said, “The current electricity market conditions are favorable for generators like us, given sufficient capacity and the lack of recent major investments in thermal power. We expect to reach 5 GW of renewable energy capacity in the next two to three years.” The company is capitalizing on these favorable conditions by investing in the development of two major transmission projects. The first, the Khavda Transmission Project, which has a return on equity of 15% and is expected to cost more than Rs 800 crores. Second is the Solapur transmission project which will involve an investment of Rs 470 crores.

ICICI Securities maintains a ‘Hold’ rating on the stock with a target price of Rs 1,825. The brokerage does not expect contribution to decline in the next three quarters, leading to moderation in quarterly profit, and expects EBITDA margin to be 17.1% in FY25 and 18.7% in FY26.

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