My Newsfeed

Trendlyne Marketwatch
Trendlyne Marketwatch
02 Sep 2024
Market closes higher, Tata Motors' total wholesales decline by 8% YoY in August
By Trendlyne Analysis

Nifty 50 closed at 25,278.70 (42.8, 0.2%) , BSE Sensex closed at 82,559.84 (194.1, 0.2%) while the broader Nifty 500 closed at 23,760.70 (26.2, 0.1%). Market breadth is in the red. Of the 2,278 stocks traded today, 881 were gainers and 1,363 were losers.

Indian indices closed higher but erased much of the gains from the morning session. The Indian volatility index, Nifty VIX, rose 5% and closed at 14.1 points. Varun Beverages surged as its board set September 12 as the record date for its stock split, dividing existing equity shares from a face value of Rs 5 into shares with a face value of Rs 2.

Nifty Smallcap 100 and Nifty Midcap 100 closed in the red. S&P BSE SME IPO and Nifty FMCG Index were among the top index gainers today. According to Trendlyne’s Sector dashboard, Diversified emerged as the best-performing sector of the day, with a rise of 3.1%.

Asian indices closed mixed. European indices are trading in the red, except for Netherlands AEX which is trading flat. US index futures are trading in the red, indicating a negative start to the trading session. Brent crude oil futures are trading lower.

  • Relative strength index (RSI) indicates that stocks like Bajaj Auto, Glenmark Pharmaceuticals, Alkem Laboratories, and Gujarat State Petronet are in the overbought zone.

  • Maithan Alloys announces that its subsidiary, Maithan Ferrous, has activated two 16.5 MVA submerged arc furnaces at its new Ferro Alloy Plant in Bankura, West Bengal. The plant will begin production next week.

  • Tata Motors falls as its total wholesales decline by 8% YoY to 71,693 units in August, due to a 15% YoY and 3% YoY decrease in commercial vehicle and passenger vehicle wholesales, respectively.

  • Hero MotoCorp rises as its monthly wholesales rise 4.8% YoY to 5.1 lakh units in August due to higher motorcycle sales and domestic business. However, its exports grow by 27.4% YoY to 20,097 units during the month.

  • Rajan Venkatesh, Managing Director & CEO of Laxmi Organic Industries, projects the revenue to double by 2028, with margins of 13-14% and a return on capital employed (ROCE) at 20%. He expects the company to be debt-free by 2028 and adds that they are focusing on delivering profitable volume growth in the coming quarters.

  • Adani Energy Solutions rises as it secures a letter of intent for the Khavda Phase IV Part-A project, which involves evacuating 7 GW of renewable energy to the National Grid.

  • Globus Spirits rises to hit its all-time high of Rs 1,154 as Motilal Oswal Mutual Fund acquires 2 lakh shares (0.7% stake) through block deal at an average price of Rs 1,071.5 per unit.

  • Godrej Properties secures a letter of intent (LOI) to develop two premium group housing plots in Gurugram from Haryana Shehri Vikas Pradhikaran (HSVP), with a total bid amount of Rs 515 crore. The plots offer a development potential of over 1 million sq ft and could generate revenue of over Rs 3,400 crore.

  • Larsen & Toubro creates a new business vertical for renewable energy within its infrastructure projects segment, separating it from power transmission and distribution. A Ravindran, Senior Vice President, will lead this vertical.

  • Ramkrishna Forgings divests its wholly-owned subsidiary, Globe All India Services, to Yatra Online for Rs 128 crore. This move allows the company to focus on its core business and also strengthen its balance sheet.

  • NCC surges as it announces receiving orders worth Rs 1,236 crore in August from state government agencies for its irrigation division and other projects.

  • Techno Electric & Engineering surges as it secures a contract to design, build, finance, operate, and transfer Edge Data Centers (EDCs) for RailTel Corporation of India. The company will manage these tasks across 102 cities in India over a twenty-year period, extendable by five years.

  • India’s manufacturing PMI moderates to 57.5 in August, down from 58.1 in July, as output and sales grow at their slowest pace since January, with competitive pressures and inflation concerns dampening business confidence.

  • Dynacons Systems & Solutions rises as it secures a Rs 142.6 crore project from Bank of Maharashtra to supply, install, and maintain Hyper Converged Infrastructure for the Nakshatra-2 private cloud initiative, including five years of maintenance and support.

  • Varun Beverages rises sharply as its board sets September 12 as the record date for its stock split, dividing existing equity shares from a face value of Rs 5 into shares with a face value of Rs 2.

  • Adani Ports & Special Economic Zone's cargo volumes rise 5% YoY to 36.1 million metric tonnes in August. The rise in cargo was primarily driven by containers (11% YoY).

  • DAM Capital predicts that the government's move to lift restrictions on ethanol production from sugarcane juice and B-heavy molasses will likely lead to higher ethanol prices ahead of the new season. The brokerage anticipates that this policy change will boost earnings growth for sugar companies starting in Q3FY25 and contribute to a sector re-rating.

  • Oriana Power surges as it receives a order worth Rs 247.9 crore from Bharat Petroleum Corporation (BPCL) for a 52-MW solar project. The deal includes building transmission lines, obtaining CTU approval, and providing five years of maintenance.

  • Rossell India surges as it completes the demerger of its aerospace and defense units into Rossell Techsys, with the scheme of amalgamation taking effect on August 30.

  • Bajaj Auto is rising as its wholesales grow 16% to 3.9 lakh units in August. Two-wheeler wholesales increase by 18% YoY, while commercial vehicle wholesales improve by 11% YoY.

  • MOIL's stock falls over 3% after the company announces a 20% price reduction for Ferro grades containing 44% manganese. Additionally, Ferro grades with lower manganese content, as well as SMGR (Mn-30% and Mn-25%), Fines, and Chemical grades, will see their prices cut by 15%.

  • Indian Hume Pipe surges to its all-time high of Rs 613.7 as it receives a letter of intent (LOI) for an order worth Rs 858.9 crore from Tapi Irrigation Development Corp, Jalgaon. The project includes building and commissioning a piped distribution network to irrigate 26,907 hectares under the Sulwade Jamphal Kanoli Lift Irrigation project in Dhule district, along with five years of system maintenance.

  • NBCC (India) rises as its board of directors approves a bonus issue of shares to equity holders in the ratio of 1:2. The record date for the issue is October 7.

  • TVS Motor’s wholesales rise 13% YoY to 3.9 lakh units in August, driven by a 14% YoY increase in two-wheelers and a 4% YoY growth in electric vehicles. Exports surge 14% YoY during the same period.

  • Rites rises as it emerges as the lowest bidder for a Rs 224.3 crore order from Tanzania Railways to supply, test, and commission four diesel multiple units for a meter gauge railway (MGR).

  • Nifty 50 was trading at 25,303.50 (67.6, 0.3%), BSE Sensex was trading at 82,725.28 (359.5, 0.4%) while the broader Nifty 500 was trading at 23,795.60 (61.1, 0.3%).

  • Market breadth is in the green. Of the 2,005 stocks traded today, 1,238 were in the positive territory and 724 were negative.

Riding High:

Largecap and midcap gainers today include Gujarat Gas Ltd. (680, 12.0%), Jio Financial Services Ltd. (344.90, 7.2%) and Adani Power Ltd. (670.20, 6.0%).

Downers:

Largecap and midcap losers today include Jindal Stainless Ltd. (739.35, -6.8%), Indus Towers Ltd. (438.95, -4.3%) and Dixon Technologies (India) Ltd. (12,614.45, -4.2%).

Volume Rockets

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

Top high volume gainers on BSE included Gujarat Gas Ltd. (680, 12.0%), Aegis Logistics Ltd. (803.60, 6.8%) and Adani Power Ltd. (670.20, 6.0%).

Top high volume losers on BSE were Archean Chemical Industries Ltd. (707.80, -4.7%) and UNO Minda Ltd. (1,168.30, -0.5%).

Godrej Agrovet Ltd. (813.80, 3.8%) was trading at 9.5 times of weekly average. UTI Asset Management Company Ltd. (1,192.20, 4.0%) and Adani Green Energy Ltd. (1,945.70, 5.9%) were trading with volumes 6.1 and 5.4 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

51 stocks hit their 52 week highs,

Stocks touching their year highs included - Apollo Hospitals Enterprise Ltd. (6,892.50, -0.5%), Aurobindo Pharma Ltd. (1,553.95, -1.0%) and Bajaj Auto Ltd. (11,126.10, 2.2%).

17 stocks climbed above their 200 day SMA including Gujarat State Fertilizer & Chemicals Ltd. (239.16, 4.0%) and SBI Cards and Payment Services Ltd. (744.35, 2.9%). 10 stocks slipped below their 200 SMA including Alok Industries Ltd. (26.63, -2.5%) and Aptus Value Housing Finance India Ltd. (321.50, -2.0%).

 
logo
The Baseline
30 Aug 2024
Five Interesting Stocks Today - August 30, 2024

1. Honasa Consumer:

This personal products company has risen by 7% over the past week. This comes after the NCLT (National Company Law Tribunal) approved its amalgamation with two of its subsidiary companies, Just4Kids and Fusion Cosmeceutics. This amalgamation is expected to help prevent cost duplication and enhance financial efficiencies, making the combined operations more cost-effective.

Just4Kids Services is a platform that gives access to information about playschools and schools, sports classes, and similar events for kids across Delhi, Gurgaon, Noida, Faridabad, and Ghaziabad. Meanwhile, Fusion Cosmeceutics is engaged in the formulation and trading of skin care products.

Over the past three months, Mamaearth’s parent company has risen by over 18.1%. During Q1FY25, the firm’s net profit grew by 40.3% YoY to Rs 40.3 crore, beating Trendlyne’s Forecaster estimates by 11.3%. Revenue was up 19.3% YoY at Rs 554.1 crore,  led by faster growth in emerging brands, market share gains (in face wash and shampoo), and aggressive distribution expansion (30% YoY).

Honasa Consumer is currently focusing on expanding its offline distribution, under a project called ‘Neev’. During Q1, the company’s offline distribution increased by 30% YoY, reaching 2 lakh retail outlets. Commenting on this, Ghazal Alaghh, the Co-founder said, “Our target is to double the offline distribution to 4 lakh retail outlets by FY27”.

Goldman Sachs recently initiated coverage on the stock with a ‘Buy’ rating and a target price of Rs 570. The brokerage highlights that the transformation of India's beauty industry presents a multi-year growth opportunity. Goldman Sachs also notes the significant growth opportunity as Honasa plans to double its offline distribution, driving growth in urban and rural markets.

2. One97 Communications (PayTM):

This digital payment player saw its parent company, One97 Communications’ share price rise 12.2% on Friday as it got approval from the Ministry of Finance for foreign direct investment (FDI) into its payment arm. With this approval, the company can re-apply for its payment aggregator license, which was rejected about two years ago due to compliance issues.

The company aims to refocus on its core business as it sells its ticketing arm to Zomato for Rs 2,048 crore. This move will enable PayTM to strengthen its core payments and financial services distribution business. The decision follows a more than 30% drop in PayTM's share price after the RBI cracked down on its payments bank arm due to irregularities in KYC (know your customer) norms and compliance issues. Currently, more than two years after listing at an issue price of Rs 2,150, the company is trading at a discount of about 70%.

As of July 2024, the company’s UPI market share was 7.8% by volume and 6% by value, according to the data released by the National Payments Corporation of India (NPCI). The RBI's action against Paytm Payments Bank has reignited discussions about capping UPI app market share at 30% to prevent any single platform from becoming too dominant. However, the NPCI postponed this proposal until December 31, 2024. If implemented in the end-of-year review, this proposal could significantly boost PayTM's market share.

Founder and CEO Vijay Shekhar Sharma, said, “The company aims to deliver at least one profitable quarter this financial year.” He emphasises that the company’s focus is returning to payments and cross-selling of financial services as its core business. Sharma also notes that the migration (from Paytm Payments Bank to payment service provider banks - Yes Bank, Axis Bank, HDFC Bank and SBI) of its technology and customers is nearing completion, after which the company can request NPCI’s permission to add new and incremental customers.

Motilal Oswal maintains a ‘Neutral’ rating on PayTM as it expects the sale of its entertainment business to strengthen its balance sheet. This transaction is expected to generate significant profits for PayTM, allowing it to reinvest in other high-potential areas. The firm forecasts that the company's EBITDA will turn positive by FY27.

3. Zee Entertainment Enterprises: 

This broadcasting & cable TV company rose 11.6% on August 27 as it resolved disputes related to the scrapped $10 billion merger with Culver Max Entertainment (CMEPL) operating  as  Sony Pictures Networks India (SPNI). ZEE Entertainment Enterprises (ZEEL) and SPNI, along with Bangla Entertainment, agreed to a non-cash settlement, withdrawing all claims, including the $90 million termination fee for the merger.

The merger failed due to disagreements over valuation, control, and governance. ZEEL and SPNI had differing valuations for their companies, leading to conflicts over merger terms. Disputes also rose over how control would be divided in the merged entity, including decision-making authority and board composition. Questions over Zee’s corporate governance practices further complicated the merger.

This resolution ends the Singapore International Arbitration Centre arbitration and legal proceedings at the National Company Law Tribunal (NCLT). ZEEL’s management stated that the settlement allows both companies to independently pursue future growth in the evolving media and entertainment sector.

In Q1FY25 the company reported a net profit of Rs 118.1 crore compared to a loss of Rs 53.4 crore in Q1FY24, surpassing Trendlyne's Forecaster estimates by 24.3%. The surge in profit was driven by lower finance cost and employee benefit expenses. Revenue grew 7.6% YoY to Rs 2,149.5 crore during the quarter, driven by higher sales from subscription and movie releases. However, the company only released 13 titles, a 60% YoY fall.

ZEEL's total ad revenue decreased by 17.9% QoQ and 3.1% YoY to Rs 910 crore. Post results, MD and CEO Punit Goenka noted Q1FY25 ad revenue was low due to cricket and elections. He expects ad revenue to improve in H2FY25 driven by rural demand recovery, supported by a good monsoon and festive season.

ICICI Securities had retained its 'Buy' rating despite persistent concerns about financial weakness, governance challenges, and unresolved litigation. The brokerage is optimistic due to the improving balance sheet, which is a potential boost to investor confidence.

4. Sonata Software: 

This IT solutions provider rose over 5% on Thursday after it won a multi-million-dollar IT outsourcing deal with a US-based healthcare provider. The AI-powered deal is to upgrade the client’s technology through better IT budget management, and the use of automation and cloud services. Commenting on this, MD & CEO Samir Dhir said, “The deal will impact short-term margins for the next two to four quarters due to the upfront AI investment, but won’t dilute long-term profitability. We expect AI services to account for 20% of our revenue over the next three years.”

Sonata Software won two more large deals in Q1FY25. The company was chosen as a partner to modernize outdated systems to the latest Microsoft technology for a client in Australia. The other cloud deal is with a major US financial firm.

In Q1FY25, the company reported a net profit decline of 12.1% YoY to Rs 105.6 crore due to higher raw material costs. Revenue grew 24.6% YoY to Rs 2,527 crore, surpassing Forecaster estimates by 56.1%. The company generated 27% of its revenue from overseas markets, with 7.5% YoY revenue growth in the International business.

Sonata’s share price has risen by 30.9% over the past year. The company has pushed its $1.5 billion revenue target for its international business to FY27, extending the timeline by two to four quarters due to the macro-economic slowdown. Dhir highlights that the company is “focused on modernization”, noting that cloud and data segments now make up 52% of Sonata's pipeline, up from 15% two years ago. The company also experienced growth in its partnership with Microsoft Fabric, which generated a pipeline of 385 crore across 80 clients.

Post results, KR Choksey downgraded its rating to ‘Accumulate’ as the stock surged 23% since the last rating, limiting further upside. However, it raised the target price to Rs 694, highlighting the company's focus on large deals and AI investments. The brokerage expects long-term growth to be driven by progress with Microsoft Fabric and effective client management.

5. Aether Industries:

This specialty chemicals company rose by 1.2% today and announced its results on July 19th. For Q1FY25, the company’s net profit increased by 0.4% YoY to Rs 29.9 crore, while its revenue rose by 17.5% YoY on the back of a 16.2% YoY rise in revenue in the large scale manufacturing vertical. The firm beat Trendlyne’s forecaster estimates for revenue by 14.7%. It appears in a screener for stocks with improving net cash flow for the last 2 years.

The firm has recently entered into an Exclusive Manufacturing Agreement with Chemoxy International, a subsidiary of the SEQENS group from France, which specializes in Health, Personal Care, and Specialty Ingredients. This three-year contract involves Aether supplying raw materials to Chemoxy, with production starting in 10 months and a volume of over 100 MT per year. Last month, Aether also commissioned site 4 for a strategic supply agreement with Baker Hughes (an energy technology firm). This deal includes six products to be manufactured in India for the first time and supplied globally, with a notable portion allocated for the Indian domestic oil and gas sector.

The company holds an estimated market share of 8-10% in the speciality chemicals space in India.Faiz Nagariya, CFO of the firm, guides the capex run rate of around Rs 300-350 crore for both FY25 and FY26.  

Rohan Desai, whole time Director of the firm said: “During the quarter under review, we witnessed growth in overall volumes, but the prices have been impacted due to China's dumping. We feel the prices have already bottomed out and we are optimistic for an upswing in the business scenario. “ 

He added,  With respect to Aether's business model, we have seen 66% contribution of the total top line coming from large scale manufacturing, 18% coming from contract/exclusive manufacturing, and 14% coming from contract research and manufacturing services business model during Q1FY25. Our export revenues stood at 42% of the total revenue and domestic sales stood at 58%.”

HDFC Securities has maintained a “Buy” rating on Aether Industries, with a target price of Rs 1,117. The brokerage notes that the company’s strategic capital investments are being fuelled by internal accruals and money raised (Rs 750 crore) through QIP. It expects a revenue CAGR of ~43% and an earnings CAGR of ~58% over FY25-27E.

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

 
logo
The Baseline
30 Aug 2024
As China slows down, it is spreading the pain | Screener: Stocks with rising FII holdings and revenue forecast

Imports falling. IBM's research team shutting shop. China's most popular consumer companies like Temu seeing revenue misses. Nepal asking China to wipe out a $216 million loan. 

In 2004, it felt like China was doing everything right. It was rising fast as a manufacturing powerhouse, and seeing GDP growth rates of 10-12%. In 2024 however, it feels like everything is going wrong. China's growth has slowed down quite dramatically, and it is facing multiple global crises - chip sanctions from the US, new tariffs and taxes from the EU and other trading partners. 

China's real estate is struggling while unemployment is up. The country's two-decade long strategy of spending heavily on infrastructure and real estate to boost growth, has hit a wall. This kind of spending has a natural limit: what do you do when you have built all the revenue generating airports and flyovers you need? China's local governments have now started building highways and airports in small towns and villages - such as one in Zhangbei, a rural town of 65,000 people. This infrastructure spending, unlike in the past, is not generating growth.  

China's slowdown may feel like an opportunity for other countries like India to step in. In reality though, there is both promise and danger. China has been so closely tied into India's and the world's supply chains, that bad news for China is impacting countries worldwide. Especially in the short term. 

In this week's Analyticks:

A weaker China changes calculations: India and other countries are rethinking policies as China struggles

Screener: Stocks where FIIs are increasing their shareholding, with high future estimates for revenue growth  

As China's own market weakens, it has turned to exports. Not everyone is happy

Even as China overtook the US to become India's top trading partner in FY24, India has also passed the maximum number of anti-dumping orders against China, across sectors like steel, plastic and chemicals. India's anti-dumping orders have also become highly targeted - on items like include printed circuit boards, industrial machinery, and even niche products like telescopic drawer sliders. 

China's worsening domestic market has forced Chinese companies to shift their focus to exports. And thanks to heavy subsidies, Chinese companies are often able to manufacture below cost and export to international markets.

Consider steel. China is easily the world's biggest steel producer, producing more than 1 billion tons a year, over half the world’s output.The decline of China's massive real estate sector however, has resulted in a lot of steel inventory with no buyers.

Domestic demand in China has fallen over 10%, but exports are ballooning as China's producers look desperately for other markets. Chinese steel exports have jumped 20% YoY and are at the highest level since 2016. 

This problem of excess is not just in the steel sector. Consider the beleaguered European auto sector, where Volkswagen, Mercedes etc are facing imports of high numbers of low-cost, high quality Chinese electric vehicles. EU has responded with heavy tariffs on Chinese EVs - MG maker SAIC, and BYD face additional duties of 36.3% and 17% on their exports to the EU.

But for European auto manufacturers, that was not enough. So EU has also now imposed a 9% duty on Chinese-made Teslas. Turkey is also planning tariffs on Chinese EVs, while Indonesia is set to impose import duties of up to 200% on textile products, which are mainly from China.

Countries exporting China's domestic market struggle

Over the past decade, many countries started to export heavily to China's massive domestic market, which welcomed them with open arms. Chinese consumers wanted Audis, BMWs, Prada bags. Now Chinese purses, Prada or otherwise, are zipping shut, and trading partners are feeling the pain. China's imports are declining and are at a four month low. Germany's exports to China fell by nearly 10% last year, and its economy shrunk. 

American companies like Apple, Nike, and Starbucks are all similarly losing steam in China. India's gems and jewellery industry had dismal results in the most recent quarter - China accounts for a third of India's cut and polished diamond exports, and demand has weakened. 

Another factor with falling imports is cultural. Under Xi Jinping, China is increasingly, turning inward. Consider the movies that the Chinese are watching. China is typically a major market for US studios, but this summer, ticket sales fell by 50% year on year. More than 80% of box office revenues this year was instead, from local releases. Hollywood movie Deadpool & Wolverine opened at No. 1 in most countries, but in China it opened at No. 2, behind a Chinese comedy, Successor. 

Now, China wants its money back

The diminishing of China is visible in one other area - lending. China was the world's biggest bilateral lender in 2017. Now as its economy has slowed, it trying to get its money back.

Developing countries around the world owe China around $1.5 trillion. Thanks to projects like the $3.7 billion hydropower station that China funded in Angola, the country's debt to China is nearly 4% of the country's GDP.

One of the countries that is on the hook for billions of dollars in Chinese loans, is Pakistan. Pakistan has laid off an estimated seven million textile workers as it struggles with debt. The government says it cannot afford to keep the textile factories running as it tries to deal with soaring interest payments.  

Many of these economies who borrowed from China are now in financial distress: Chinese government loans have a 2% interest rate compared with the 1.54% norm from the World Bank. On top of this, Chinese lenders also have a penalty interest rate of 8.7% for late payments. The World Bank says that the total value of interest payments of the 75 poorest countries in the world has jumped 4X, and will exceed their combined annual spending on health, education and infrastructure.

From 2008-2021, China accounted for over 40% of global GDP growth. The way China now handles its trade and lending relationships as it slows down, is going to be key, so that it doesn't drag the world economy down with it.  

Screener: Stocks where FIIs are increasing their shareholding with high Trendlyne Forecaster estimates for YoY revenue growth

FIIs increase stake in the banking and software sectors

As Q1FY25 results season has ended, we take a look at the stocks that were the top picks for foreign institutional investors (FIIs), which also have strong YoY growth estimates for revenue in Q2FY25. This screener shows companies increasing FII holding QoQ in Q1FY25 and high Trendlyne Forecaster estimates for revenue YoY growth in Q2FY25.

The screener is dominated by stocks from the banking & finance, software & services, pharmaceuticals & biotechnology, consumer durables, and automobiles & auto components sectors. Major stocks that appear in the screener are Indus Towers, Coforge, KFIN Technologies, Yes Bank, MphasiS, RBL Bank, Gland Pharma, and Craftsman Automation.

Coforge shows up in the screener with its FII holding increasing by 6.4 percentage points QoQ in Q1FY25. Major funds which bought stake in the company are New World Fund (bought a 1.5% stake), and Smallcap World Fund (bought a 0.4% stake). The company also has a Forecaster estimated revenue growth of 24.9% YoY for Q2FY25. Dolat Capital believes that the IT company is well positioned for revenue growth owing to its multiple contract wins in the breadth-first search algorithm (BFS) and insurance segments, and increased contribution from its acquisitions of Cigniti and OptML.

KFIN Technologies’ FII holding grew by 6.1 percentage points QoQ in the past quarter. The most notable buyers of the company’s stock were Employees Provident Fund Board (bought 1.5% stake), The India Fund (bought 1.2% stake), and Aberdeen New India Investment Trust (bought 1.1% stake). Trendlyne’s Forecaster expects the company’s revenue to grow by 27% YoY in Q2FY25. ICICI Securities expects the company’s revenue to grow on the back of improving equity mix in mutual funds assets under management (AUM), market share expansion, a strong new listing pipeline in the issuer solutions business, and client wins in its international business. The issuer solutions business provides banking solutions to corporates like banks, mutual funds, and PSUs.

You can find some popular screeners here.

 
logo
The Baseline
30 Aug 2024
Five stocks to buy from analysts this week - August 29, 2024
By Ruchir Sankhla

1. Karur Vysya Bank:

Asit C Mehta initiates a ‘Buy’ rating on this bank with a target price of Rs 265 implying a 18.6% upside. The bank reported net profit growth of 18.9% YoY to Rs 458.7 crore in Q1FY25 while its operating revenue grew 21.3% YoY to Rs 2,284.5 crore. Analyst Akshay Tiwari and Shweta Upadhyay highlight that the gross non-performing assets (GNPA) and net non-performing assets (NNPA) declined from 8.7% and 3.9% in FY20 to 1.3% and 0.4% respectively in Q1FY25.

The analysts expect the bank to see growth in its retail and MSME loan portfolios, while corporate lending growth may remain subdued. The bank's initiatives to attract retail customers should lead to an increase in retail deposits, thereby improving its CASA ratio and driving higher net interest margins. Asset quality continues to improve, supported by healthy recoveries and lower loan defaults.

Tiwari and Upadhyay project the bank's loan book will grow at a CAGR of 16.3% over FY 25-27 (CAGR of 19.7% excluding corporate loans). Margins are expected to improve to 4.4% by FY27. Additionally, they anticipate the bank's net interest income (NII) and PAT to increase at CAGRs of 18% and 25%, respectively, over the same period.

2. Royal Orchid Hotels:

Edelweiss maintains its ‘Buy’ rating on this hotels company with a target price of Rs 477. This indicates a potential upside of 29.4%. Royal Orchid’s revenue grew 6% YoY to Rs 73 crore in Q1FY25, driven by strong room additions (up 13.7% YoY). However, the EBITDA margin declined by 347 bps YoY to 22.8%. Analysts Amit Agarwal and Rishith Shah predict, “Margins will face pressure in FY25, declining to 23.8% due to higher fixed costs to aid its property expansion.”

The analysts are still bullish, due to the company’s expansion plans. The company plans to add 1,900 rooms across 26 hotels in FY25, expanding its total inventory to nearly 7,826 rooms. It aims to drive growth through new management contracts and revenue-sharing agreements. The company also recently opened a new five-star hotel in Mumbai with 300 rooms, expecting an average room rate (ARR) of Rs 9,000–11,000 and approximately Rs 120 crore in revenue at an 80% occupancy rate.

Agarwal and Shah expect a 16.3% revenue CAGR over FY25-26, driven by a 5% ARR growth from improved occupancy, over 1,200 new rooms, increased food & beverages income, and higher in-resort spending.

3. Kalpataru Projects International:

Emkay reiterates its ‘Buy’ rating on Kalpataru Projects International (KPIL), setting a target price of Rs 1,550, indicating a potential upside of 15.9%. This construction and engineering company reported a 19.1% YoY decline in net profit to Rs 93 crore in Q1FY25, while revenue grew by 8.2% YoY to Rs 4,609 crore.

Analysts Ashwani Sharma and Chinmay Kabra noted that KPIL’s order inflow for the year stands at Rs 7,000 crore, down 5% YoY due to a higher base, despite strong growth in the power transmission & distribution (T&D) and water segments. The company has a robust order backlog of Rs 57,100 crore, with FY25 order inflow guidance set at Rs 23,000 crore.

A key positive for KPIL is its recent arbitration win against the National Highways Authority of India (NHAI) for two road projects. The company is also progressing with the divestment of Vindhyachal Expressway and Indore Real Estate, and expects to  generate Rs 550 crore  in cash flow from these two assets by FY25.

Sharma and Kabra project a 20% CAGR in revenue, 27% in EBITDA, and 38% in PAT over FY 25-27. The company’s strong order book and favorable industry conditions support a one-year forward PE ratio of 20 times.

4. Mankind Pharma:

Motilal Oswal maintains a ‘Buy’ rating on this pharmaceutical company with a target price of Rs 2,760, indicating a 13.7% upside. Analyst Tushar Manudhane notes that Mankind is focused on launching innovative products in the high-barrier chronic and consumer segments. The recent launch of Nimulid, a consumer wellness product, generated Rs 13.3 crore in revenue for FY24. Additionally, the company is expanding its presence in Tier I and metro cities through hospital partnerships.

Mankind’s acquisition of Bharat Serums and Vaccines (BSV) has enhanced its R&D, manufacturing, and institutional capabilities while gaining access to a specialty portfolio and a new distribution channel. BSV’s strong presence in women’s healthcare includes unique drugs with no direct competitors.

Manudhane is upbeat about Mankind’s expansion into new sectors such as pet food, agritech, and ayurveda (following the acquisition of Upakarma). He anticipates a 14% CAGR in earnings and a 180 bps margin expansion over FY25-26, driven by increased footprint in metro and Tier-I cities and expanding the number of brands in the Rs 50-100 crore range.

5. EFC:

Khambatta Securities gives a ‘Buy’ rating to small cap company EFC, setting a target price of Rs 863, which suggests a potential upside of 72.3%.This realty firm reported a net profit increase of 190.5% YoY to Rs 15.1 crore in Q1FY25 and its revenue grew 84.6% YoY to Rs 105.3 crore during the quarter. The company is in a PE buy zone.

The analyst notes that flexible office spaces have transformed India's commercial real estate sector, doubling from 29.3 million sq ft (MSF) in 2019 to 61 MSF in 2023, making it the fastest-growing market.The sector is projected to reach 126 MSF by 2028, absorbing over 40 MSF annually as companies return to office. EFC has established a strong market presence, delivering projects for major clients including Conneqt and Tech Mahindra, and securing its largest contract with Coforge to develop 100,000 square feet of commercial space.

The analyst expects revenue to grow at an annualized average rate of 77% over the next few years while forecasting a PAT CAGR of 105%, driven by profitability gains and adds that at a FY26 forward PE of 11.2 times, the EFC stock looks attractive.

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

(You can find all analyst picks here)

 
Trendlyne Marketwatch
Trendlyne Marketwatch
30 Aug 2024
Market closes higher, Technocraft's board approves buyback worth Rs 130 crore
By Trendlyne Analysis

Nifty 50 closed at 25,235.90 (84.0, 0.3%) , BSE Sensex closed at 82,365.77 (231.2, 0.3%) while the broader Nifty 500 closed at 23,734.55 (103.2, 0.4%). Market breadth is in the green. Of the 2,234 stocks traded today, 1,249 were on the uptick, and 958 were down.

Indian indices maintained their gains from the morning session to close higher. The Indian volatility index, Nifty VIX, fell 2.9% and closed at 13.4 points. Prestige Estates Projects closed 3.7% higher after its board of directors approved a qualified institutional placement (QIP) of equity shares at a floor price of ?1,755.1 per share.

Nifty Midcap 100 and Nifty Smallcap 100 closed in the green. Nifty Bank and Nifty Pharma closed higher. According to Trendlyne’s sector dashboard, Realty emerged as the best-performing sector of the day, with a rise of 1.6%.

European indices traded mixed, while major Asian indices closed higher. US index futures traded mixed, indicating a cautious start to the trading session. Investors look ahead to the release of the PCE (personal consumption expenditures) price index data, the Federal Reserve’s preferred inflation measure. PCE inflation is expected to rise 0.2% MoM or 2.6% YoY in July.

  • Money flow index (MFI) indicates that stocks like Trent, Gillette India, Mankind Pharma, and Godrej Industries are in the overbought zone.

  • Technocraft Industries (India) rises as its board approves a Rs 130 crore buyback of up to 2.9 lakh equity shares at Rs 4,500 per share. The buyback offer will open on September 2 and close on September 6.

  • Lemon Tree Hotels signs a license agreement for a new hotel in Ayodhya, set to open in FY26. The property will be managed by Lemon Tree's wholly-owned subsidiary, Carnation Hotels, and feature 72 rooms.

  • Healthcare stocks like Glenmark Pharmaceuticals, Metropolis Healthcare, Alkem Laboratories, and Dr Lal Pathlabs rise more than 2% in trade. All constituents of the broader Nifty Healthcare index are trading in the green, helping the index touch a new all-time high of 14,554.2.

  • According to reports, Adani Group has invested approximately Rs 2,000 crore in the Dharavi Redevelopment Project (DRP), Asia's largest slum redevelopment initiative covering 640 acres in Mumbai. The group has already disbursed Rs 1,000 crore to the Indian Railways for 27 acres of land designated for the project. Further funds are being allocated for a comprehensive survey to assess the number of tenements in Dharavi, anticipated to be completed by March 2025.

  • Mahindra & Mahindra signs a non-binding memorandum of understanding (MoU) with Sentrycs to explore creating advanced anti-drone solutions for civilian and military use in India.

  • Piramal Pharma rises as its board of directors approves the subscription to 13.9 crore preference shares of its wholly-owned subsidiary, Piramal Dutch Holdings NV, for approximately Rs 1,306.6 crore, in exchange for an existing unsecured loan.

  • Motilal Oswal retains its 'Buy' call on HCL Technologies with a higher target price of Rs 2,000 per share. This indicates a potential upside of 13.6%. The brokerage believes the company will outperform its competitors due to its go-to-market (GTM) strategy, combining the IT services and R&D businesses. It expects the firm's revenue to grow at a CAGR of 5.9% over FY25-27.

  • According to a poll of economists, India's gross domestic product (GDP) is estimated to grow 6.8% in the April–June period compared to 7.2% in the previous quarter. Gross value added is projected to grow by 6.5%. Economic growth likely slowed in Q1FY25 due to subdued government spending and weaker demand.

  • Foreign institutional investors buy equity worth Rs 9,098.2 crore in the market over the past week, according to Trendlyne's FII dashboard. Index options witness the highest outflow of Rs 18,799.9 crore from foreign investors. Meanwhile, mutual funds are net buyers in the equity market, investing Rs 4,339.5 crore during the same period.

  • SJVN reportedly signs a memorandum of agreement (MoA) with the Government of Arunachal Pradesh to develop five hydroelectric projects totaling 5,097 MW. Etalin and Attunli hydroelectric plants (HEPs) are in advanced stages of clearance, requiring an investment of approximately Rs 44,000 crore and generating around 15,787 million units of electricity annually.

  • Hindustan Oil Exploration Co rises sharply as it announces the successful activation of wells D1 and D2 in the western offshore Block B-80 field. The company reports that both wells are in the stabilization phase.

  • Pramod Patwari, CFO of Balrampur Chini Mills, believes the Centre’s decision to remove the cap on sugarcane diversion for ethanol production eliminates uncertainty. He projects ethanol volumes of 22-23 crore litre for FY25, and 30 crore for FY26.

  • Tech Mahindra rises as it signs a memorandum of understanding (MoU) with Marshall Group to collaborate on innovative and sustainable solutions in aerospace and defense.

  • Welspun Living’s promoter, Balkrishan Goenka’s family trust, sells 3.8 crore shares (3.9% stake) worth Rs 781.5 crore in a block deal. The transaction was executed at an average price of Rs 205.2 per share.

  • Max Estates' board of directors approves the qualified institutional placement (QIP) of equity shares at a floor price of Rs 628.7 per share.

  • MSCI's August rejig is set to take effect today, which is estimated to lead to net inflows worth $5.5 billion into the Indian stock market. The MSCI Global Standard index will add seven stocks and remove one. HDFC Bank will see an increase in its weight within the index. According to IIFL Alternative Research, India's weight in the MSCI Emerging Markets (EM) index is projected to reach a record 20%, up from 19.4%.

  • Great Eastern Shipping Co sells its 2011-built Supramax Dry Bulk Carrier, Jag Rani, with a deadweight tonnage of about 56,820. The company will deliver the vessel to the new owner by Q3FY25.

  • Garden Reach Shipbuilders & Engineers rises sharply as it signs a memorandum of understanding (MoU) with the National Highway Infrastructure Development Corp (NHIDCL) to supply double-lane bridges.

  • SpiceJet falls sharply as it reportedly temporarily ceases the paid employment of 150 cabin crew members amid financial and legal woes. The Directorate General of Civil Aviation (DGCA) has placed the company under enhanced surveillance, and the Delhi High Court has asked the airline to ground three engines and return them to its lessors in 15 days.

  • Macquarie maintains its ‘Overweight’ rating on TVS Motor and Hero MotoCorp, and a ’Neutral’ stance on Bajaj Auto and Eicher Motors. The brokerage notes the robust growth in the two-wheeler segments and believes it will continue to lead FY25 growth. The brokerage anticipates volume growth in the low teens in FY25, driven by rural demand recovery and rising EV penetration.

  • ITI surges as it secures its first order from the State Election Commission (SEC) of West Bengal to supply 500 electronic voting machines (EVMs).

  • Rail Vikas Nigam rises as it signs a memorandum of understanding (MOU) with Patel Engineering to cooperate and establish a framework for achieving synergies in hydro and other infrastructure projects, both in India and overseas.

  • Life Insurance Corp of India receives a goods and services tax demand worth Rs 605.6 crore from the Deputy Commissioner of State Tax, Mumbai.

  • Prestige Estates Projects' board of directors approves the qualified institutional placement (QIP) of equity shares at a floor price of Rs 1,755.1 per share.

  • Markets opened high. Nifty 50 was trading at 25,239.55 (87.6, 0.4%) , BSE Sensex was trading at 82,637.03 (502.4, 0.6%) while the broader Nifty 500 was trading at 23,720.90 (89.5, 0.4%)

  • Market breadth is highly positive. Of the 1,909 stocks traded today, 1,455 showed gains, and 419 showed losses.

Riding High:

Largecap and midcap gainers today include One97 Communications Ltd. (621.90, 12.2%), Jindal Stainless Ltd. (793.40, 7.8%) and Au Small Finance Bank Ltd. (688.70, 7.6%).

Downers:

Largecap and midcap losers today include Vodafone Idea Ltd. (15.64, -4.1%), APL Apollo Tubes Ltd. (1,462.10, -2.7%) and Voltas Ltd. (1,743.65, -2.5%).

Movers and Shakers

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

Top high volume gainers on BSE included One97 Communications Ltd. (621.90, 12.2%), Jindal Stainless Ltd. (793.40, 7.8%) and Au Small Finance Bank Ltd. (688.70, 7.6%).

Top high volume losers on BSE were Vodafone Idea Ltd. (15.64, -4.1%), Cochin Shipyard Ltd. (1,886.65, -3.5%) and Capri Global Capital Ltd. (205.52, -3.2%).

Praj Industries Ltd. (766.90, 5.2%) was trading at 21.3 times of weekly average. Prestige Estates Projects Ltd. (1,813.15, 5.1%) and HDFC Bank Ltd. (1,636.90, -0.1%) were trading with volumes 14.5 and 14.4 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

49 stocks took off, crossing 52 week highs,

Stocks touching their year highs included - Abbott India Ltd. (3,0152, 0.6%), Apollo Hospitals Enterprise Ltd. (6,927.50, 1.0%) and Aurobindo Pharma Ltd. (1,569.40, 0.4%).

19 stocks climbed above their 200 day SMA including Au Small Finance Bank Ltd. (688.70, 7.6%) and ZF Commercial Vehicle Control Systems India Ltd. (1,5880, 3.9%). 9 stocks slipped below their 200 SMA including Engineers India Ltd. (217.50, -3.0%) and Usha Martin Ltd. (331.35, -1.7%).

 
Trendlyne Marketwatch
Trendlyne Marketwatch
29 Aug 2024
Market closes higher, LT Foods' board approves the acquisition of a 17.5% stake in Nature Bio-Foods
By Trendlyne Analysis

Nifty 50 closed at 25,151.95 (99.6, 0.4%) , BSE Sensex closed at 82,134.61 (349.1, 0.4%) while the broader Nifty 500 closed at 23,631.40 (15.5, 0.1%). Market breadth is overwhelmingly negative. Of the 2,242 stocks traded today, 665 were on the uptrend, and 1,553 went down.

Indian indices closed in the green, with the benchmark Nifty 50 index closing at 25,151.9 points. The Indian volatility index, Nifty VIX, declined by 1.2% and closed at 13.8 points. InterGlobe Aviation’s promoter, Rakesh Gangwal, has reportedly sold 2.3 crore shares (5.8% stake) worth Rs 10,300 crore in a block deal.

Nifty Midcap 100 and Nifty Smallcap 100 closed in the red. S&P BSE Midsmallcap & S&P BSE Large MidCap were among the top index gainers today. According to Trendlyne’s Sector dashboard, Oil & Gas emerged as the best-performing sector of the day, with a jump of over 1.2%.

Asian indices closed mixed while European indices are trading higher. US index futures traded higher, indicating a positive start to the trading session. Brent crude oil futures are trading in the red. Oil prices declined due to new indications of reduced summer crude demand, following a lower-than-expected drop in weekly U.S. crude supplies. Additionally, a rebound in the US Dollar Index put further pressure on prices, as investors have largely factored in anticipated U.S. rate cuts starting next month.

  • Britannia Industries sees a long buildup in its August 29 futures series, with open interest increasing by 64.7% and a put-call ratio of 0.3.

  • LT Foods' board of directors approves the acquisition of a 17.5% stake in Nature Bio-Foods for Rs 110 crore from India Agri Business Fund II. This acquisition makes the company a wholly-owned subsidiary of LT Foods.

  • SpiceJet reportedly struggles with financial troubles, denying passengers boarding in Dubai due to unpaid dues. Employees also face delays, with July salaries arriving in August.

  • Reliance Industries rises as its board of directors is scheduled to meet on September 5 to consider issuing 1:1 bonus shares to its equity shareholders.

  • Morgan Stanley maintains an 'Overweight' rating on HCL Technologies with a target price of Rs 1,705, citing the management’s favorable short-term outlook, especially in financial services. The brokerage highlights the company’s diversified portfolio and efforts to increase wallet share.

  • Indian Renewable Energy Development Agency is rising as its board approves raising Rs 4,500 crore in one or more tranches through a follow-on public offer (FPO), qualified institutional placement (QIP), preferential issue, or other modes.

  • NLC India signs a 25-year power usage agreement with Telangana state DISCOMs to supply 200 MW of solar power under the central public sector undertaking (CPSU) scheme. The project generates around 1,300 crore units of green energy and reduces carbon emissions by 90 lakh tonnes.

  • NBCC sells 3.5 lakh sq. ft. of commercial space at Down Town, Sarojini Nagar, New Delhi, for Rs 1,342.3 crore via a bulk e-auction for the Ministry of Housing and Urban Affairs.

  • One97 Communications' subsidiary, Paytm Payment Services (PPSL), receives Foreign Direct Investment (FDI) approval from the Government of India. PPSL will now resubmit its payment aggregator license application following this approval.

  • Intellect Design Arena is rising as it enters a partnership with Wipro to use its eMACH.ai platform to provide IT solutions in the banking & financial services industry.

  • Sharekhan maintains its 'Buy' call on CESC with a higher target price of Rs 236 per share. This indicates a potential upside of 23.2%. The brokerage expects revenue growth driven by renewable energy capex revival and turnaround of the distribution business. It expects the company's revenue to grow at a CAGR of 9.4% over FY25-26.

  • TV18 Broadcast and Network18 Media & Investments rise as the Competition Commission of India (CCI) approves the merger of RIL and Disney's Indian media assets, setting the stage for a new media giant. As per the deal entered in February, Viacom18 merged with Star India through a court-sanctioned scheme. The joint venture, valued at Rs 70,350 crore ($8.5 billion), will receive Rs 11,500 crore ($1.4 billion) from Reliance Industries to support its growth.

  • Sonata Software rises sharply as it secures a multi-million IT outsourcing deal with a US-based healthcare and wellness company. The deal aims to help clients optimize IT budgets and modernize their technology using AI and automation.

  • Reports suggest that 97 lakh shares (2.1% stake) of PB Fintech, amounting to Rs 1,610 crore, have changed hands in a block deal. Tencent Cloud Europe BV is the likely seller in the transaction.

  • Tata Steel acquires an additional 178.3 crore shares in its subsidiary, Tata Steel Holdings, for $280 million (approx. Rs 2,349.5 crore).

  • Citi maintains its 'Buy' rating on Vodafone Idea with a price target of Rs 22. The brokerage is optimistic that the Supreme Court will agree to review the firm's AGR Curative petition. It believes a favorable decision could substantially alleviate the company's AGR debt. The potential benefits are estimated to be between Rs 4-5 per share or possibly more than a 25% increase over the current market price.

  • Aarti Drugs' board approves a Rs 59.9 crore buyback of up to 6.7 lakh equity shares at Rs 900 per share. It sets September 5 as the record date for the buyback.

  • Welspun Living's promoter reportedly plans to sell a 4.6% stake worth Rs 889.5 crore at a floor price of Rs 197 per share in a block deal.

  • JSW Energy's subsidiary, JSW Neo Energy, receives a letter of award (LoA) from Maharashtra State Electricity Distribution (MSEDCL) for an additional 400 MW wind-solar hybrid power project under the greenshoe option of Phase-III.

  • UBS initiates a 'Buy' on power financiers REC and Power Finance Corp, given India’s high growth in renewable power generation and infra push. The brokerage estimates that around 20% of these companies’ total loan books are now in renewables and infrastructure, and expects it to reach 40% by FY29.

  • Biocon rises as its subsidiary, Biocon Biologics, signs an agreement with Janssen Biotech, Janssen Biotech Ireland and Johnson & Johnson (collectively known as Janssen). The agreement will help Biocon commercialize its Bmab 1200, a proposed biosimilar to Stelara, in Europe, UK, Canada, and Japan.

  • InterGlobe Aviation falls as its promoter, Rakesh Gangwal, reportedly plans to sell 2.3 crore shares (5.8% stake) worth Rs 10,300 crore in a block deal.

  • KEC International is surging as it wins two orders worth Rs 1,171 crore to supply a 400 Kv transmission line in UAE and a 380 Kv transmission line in Saudi Arabia.

  • Genus Power Infrastructure rises sharply as it bags three orders worth Rs 4,469 crore to design an advanced metering infrastructure (AMI) and supply 5.59 million smart prepaid meters.

  • Nifty 50 was trading at 25,029 (-23.4, -0.1%), BSE Sensex was trading at 81,739.56 (-46, -0.1%) while the broader Nifty 500 was trading at 23,604.50 (-11.5, -0.1%).

  • Market breadth is horizontal. Of the 1,953 stocks traded today, 994 were on the uptrend, and 920 went down.

Riding High:

Largecap and midcap gainers today include Tata Motors Ltd. (1,121.65, 4.4%), One97 Communications Ltd. (554.50, 3.1%) and Tata Motors Limited (DVR) (768.65, 2.9%).

Downers:

Largecap and midcap losers today include Tata Elxsi Ltd. (7,922.45, -3.7%), Tube Investments of India Ltd. (4,004.55, -3.6%) and FSN E-Commerce Ventures Ltd. (209.55, -3.5%).

Volume Rockets

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

Top high volume gainers on BSE included TV18 Broadcast Ltd. (51.59, 7.7%), Whirlpool of India Ltd. (2,194.80, 5.8%) and Concord Biotech Ltd. (1,705.60, 5.8%).

Top high volume losers on BSE were Welspun Living Ltd. (196.50, -5.2%), Kama Holdings Ltd. (2,770, -3.5%) and Procter & Gamble Hygiene & Healthcare Ltd. (16,540, -2.7%).

KEC International Ltd. (900.75, 3.8%) was trading at 17.3 times of weekly average. Sonata Software Ltd. (656.90, 5.2%) and ZF Commercial Vehicle Control Systems India Ltd. (15,329.25, 0.8%) were trading with volumes 11.8 and 8.8 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

29 stocks took off, crossing 52 week highs,

Stocks touching their year highs included - Abbott India Ltd. (29,900, -0.2%), Bajaj Auto Ltd. (10,807.85, 1.4%) and Bajaj Finserv Ltd. (1,755.65, 2.5%).

10 stocks climbed above their 200 day SMA including TV18 Broadcast Ltd. (51.59, 7.7%) and Mahindra Holidays & Resorts India Ltd. (414.75, 2.7%). 22 stocks slipped below their 200 SMA including Tanla Platforms Ltd. (939.60, -3.3%) and Procter & Gamble Hygiene & Healthcare Ltd. (16,540, -2.7%).

 
Trendlyne Marketwatch
Trendlyne Marketwatch
28 Aug 2024
Market closes flat, Ahluwalia bags an order worth Rs 350.4 crore from BALCO
By Trendlyne Analysis

Nifty 50 closed at 25,052.35 (34.6, 0.1%), BSE Sensex closed at 81,785.56 (73.8, 0.1%) while the broader Nifty 500 closed at 23,615.95 (11.1, 0.1%). Market breadth is in the red. Of the 2,239 stocks traded today, 871 were on the uptrend, and 1,335 went down.

Indian indices erased their gains from the afternoon session to close flat. The Indian volatility index, Nifty VIX, rose 2.3% and closed at 13.9 points. Advait Infratech surged to its 5% upper circuit limit as it secured an order worth Rs 296 crore from Solar Energy Corporation of India to set up manufacturing capacities for 200 MW of electrolysers.

Nifty Smallcap 100 and Nifty Midcap 100 closed flat. Nifty IT and Nifty Healthcare Index were among the top index gainers today. According to Trendlyne’s Sector dashboard, Retailing emerged as the best-performing sector of the day, with a rise of 1.7%.

Asian indices closed mixed. European indices are trading in the green, except for Russia’s RTSI and MOEX which are trading in the red. US index futures are trading flat, indicating a cautious start to the trading session. Brent crude oil futures are trading lower.

  • Relative strength index (RSI) indicates that stocks like Tata Elxsi, Glenmark Pharmaceuticals, Krishna Institute of Medical Sciences, and Gujarat State Petronet are in the overbought zone.

  • Sharekhan retains its 'Buy' call on Zydus Wellness with a target price of Rs 3,000 per share. The brokerage remains positive due to strong cash flow, with FCF at Rs 218 crore in FY25 and improving return ratios. It projects the company's revenue and PAT to grow at a CAGR of 14% and 34%, respectively, over FY25-26.

  • JBM Auto rises sharply as its subsidiary, JBM Electric Vehicles, bags an order from LeafyBus to supply 200 electric luxury buses. The expected time of delivery is 24 months.

  • The recent cut in gold import duties from 15% to 6% is expected to drive a substantial rise in gold purchases, especially during the forthcoming festive and wedding season. Rajeev Yadav, Deputy CEO of AU Small Finance Bank, said, “The reduction in gold import duties has greatly increased demand in the Indian market, resulting in a significant drop in domestic gold prices, exceeding expectations.”

  • Ahluwalia Contracts (India) surges as it secures an order worth Rs 350.4 crore from Bharat Aluminium Company (BALCO) to design and build 756 two-bedroom apartments on an EPC basis in Korba, Chhattisgarh.

  • Wipro rises sharply as it announces an expanded collaboration with Dell Technologies, integrating the Dell AI Factory into its Enterprise AI-Ready Platform. This expansion, involving NVIDIA technologies, aims to enhance AI adoption across cloud, data centers, and edge environments.

  • Shoppers Stop rises sharply as it announces a strategic collaboration with makeup brand Max Factor. This partnership will introduce the Hollywood label into India’s brick-and-mortar retail market through House of Beauty.

  • GRM Overseas acquires a 44% equity stake in Swmabhan Commerce (Rage Coffee) through primary infusion and secondary buyouts. Rage Coffee is co-owned by Bharat Sethi, Sixth Sense Ventures, and prominent figures such as cricketer Virat Kohli.

  • Indian Oil Corp signs a memorandum of understanding (MoU) with Rashtriya Ispat Nigam (RINL) to supply oils and greases to the Visakhapatnam steel plant for five years and provide technical support for lubrication and oil management.

  • Advait Infratech surges to its 5% upper circuit as it bags an order worth Rs 296 crore from Solar Energy Corp of India to set up manufacturing capacities of 200 MW of electrolysers.

  • Indostar Capital Finance rises as it sells a significant portion of its stressed loans, amounting to Rs 356.8 crore, to Pridhvi Asset Reconstruction and Securitisation Company (PARAS) as part of its retail-focused strategy. The sale, resolved on August 27, was conducted under RBI's Swiss Challenge method.

  • GQG Partners acquires an additional 4.5 crore shares (0.4% equity) of GMR Airports, raising its stake to around 5.2% as of August 23.

  • IT stocks like LTIMindtree, Wipro, Coforge, L&T Technology Services, and MphasiS rise more than 3% in trade. All constituents of the broader Nifty IT index are trading in the green, helping it touch its all-time high of 42,707.7.

  • DCX Systems surges as it receives a purchase order worth approximately Rs 187.3 crore from an overseas customer to supply electronic kits.

  • NBCC rises sharply as its board of directors is set to meet on August 31 to consider the issuance of bonus shares to its equity shareholders.

  • Indus Towers' board approves the buyback of 5.67 crore equity shares, which will increase Bharti Airtel's shareholding from 48.9% to over 50%. Post-buyback, Indus Towers will become a subsidiary of Bharti Airtel.

  • Orient Technologies' shares debut on the bourses at a 39.8% premium to the issue price of Rs 206. The Rs 214.8 crore IPO received bids for 151.7 times the total shares on offer.

  • Skipper rises as its board of directors approves raising funds worth Rs 600 crore by issuing equity and debt instruments.

  • Servotech Power Systems rises as it partners with 62 DISCOMs across India under the Pradhan Mantri-Surya Ghar Mufti Bijli Yojana. This partnership strengthens Servotech’s role in renewable energy and helps consumers access government subsidies for solar solutions.

  • UBS maintains its ‘Neutral’ rating on Bharti Airtel and ‘Buy’ on Vodafone Idea, anticipating potential relief measures from the government. The brokerage also expects 60-75% of the tariff hikes taken by the telecom companies to translate into revenue over the next three quarters.

  • Zydus Lifesciences rises as the US FDA approves its Amantadine extended-release capsules for treating dyskinesia in Parkinson’s patients undergoing levodopa therapy.

  • Aditya Birla Capital invests Rs 300 crore in Aditya Birla Housing Finance by subscribing to the company's rights to meet its funding requirements and improve its leverage ratio.

  • ICICI Prudential Life Insurance falls as it gets a GST demand worth Rs 429.1 crore from the Deputy Commissioner of State Tax, Maharashtra.

  • PNC Infratech is rising as it emerges as the lowest bidder for a Rs 380 crore project from the National Highways Authority of India (NHAI). The project involves the construction of an additional 3-lane bridge over River Ganga to connect Buxar and Bharauli on NH-922 in Uttar Pradesh and Bihar on hybrid annuity mode (HAM).

  • Nifty 50 was trading at 25041.45 (23.7, 0.1%) , BSE Sensex was trading at 81786.13 (74.4, 0.1%) while the broader Nifty 500 was trading at 23638.40 (33.6, 0.1%)

  • Market breadth is overwhelmingly positive. Of the 1,947 stocks traded today, 1,358 were in the positive territory and 559 were negative.

Riding High:

Largecap and midcap gainers today include LTIMindtree Ltd. (6,127.55, 6.5%), Trent Ltd. (7,242.10, 5.4%) and L&T Technology Services Ltd. (5,678.60, 3.5%).

Downers:

Largecap and midcap losers today include Tata Elxsi Ltd. (8,227.50, -8.3%), Hindustan Zinc Ltd. (511.25, -4.0%) and FSN E-Commerce Ventures Ltd. (217.15, -3.7%).

Movers and Shakers

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

Top high volume gainers on BSE included NBCC (India) Ltd. (195.71, 10.2%), LTIMindtree Ltd. (6,127.55, 6.5%) and Trent Ltd. (7,242.10, 5.4%).

Top high volume losers on BSE were Tata Investment Corporation Ltd. (7,190.45, -2.6%), Aditya Birla Fashion and Retail Ltd. (314.85, -2.2%) and Esab India Ltd. (6,152.55, -0.8%).

GMM Pfaudler Ltd. (1,401.75, 3.3%) was trading at 55.5 times of weekly average. Intellect Design Arena Ltd. (981.95, 1.1%) and JBM Auto Ltd. (1,953.35, 2.9%) were trading with volumes 9.6 and 9.6 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

39 stocks took off, crossing 52 week highs,

Stocks touching their year highs included - Abbott India Ltd. (29,955.25, 0.7%), Akzo Nobel India Ltd. (3,539.35, 2.8%) and Aurobindo Pharma Ltd. (1,564.20, 0.8%).

10 stocks climbed above their 200 day SMA including Engineers India Ltd. (225.55, 4.9%) and GMM Pfaudler Ltd. (1,401.75, 3.3%). 6 stocks slipped below their 200 SMA including Adani Energy Solutions Ltd. (1,027.15, -1.8%) and R R Kabel Ltd. (1,601.55, -1.2%).

 
logo
The Baseline
28 Aug 2024
By Satyam Kumar

At the monetary policy meeting on August 8, the Reserve Bank of India's (RBI) rate-setting panel maintained India's economic growth outlook, projecting GDP growth of 7.2% for FY25, after keeping the repo rate unchanged at 6.5%. 

The GDP growth forecast for the full year and the upcoming quarters is unchanged, but RBI’s forecast for Q1FY25 has been revised down to 7.1%. A poll conducted by Financial Express among economists suggests that Q1 growth, estimated at 6.7%, will be the lowest compared to the past five quarters. This slowdown is attributed to weaker manufacturing and agricultural activity, alongside a decline in government spending. The National Statistical Office (NSO) is set to release the Q1FY25 GDP data on August 30.

According to Trendlyne’s Results dashboard, more than 60% of the Nifty500 companies have reported positive net profit growth in their results for the quarter ending June 30. This edition of Chart of the Week looks at YoY growth in revenue and net profit across industries, and the biggest contributors here.

Exchanges & capital markets industry continue to outperform in Q1FY25

India’s capital markets have been on a consistent upward trajectory over the past few years, and the last quarter was no exception. Markets hit new highs, with Nifty50 near its all-time of 25,073 after rising 30% over the past year. Revenue growth in the industry has reached new highs with each passing quarter driven by rising investor confidence. According to Trendlyne’s Results Dashboard, the exchange industry witnessed its revenue double on a YoY basis in Q1. 

For BSE, transaction charges—which make up more than half of the total revenue—soared by 5.6X YoY to Rs 366 crore. Revenue from equity derivatives also jumped to Rs 242 crore, compared to just Rs 1.6 crore in Q1FY24, thanks to a relaunch of derivatives in May last year. However, net profit declined 40.1% YoY to Rs 265.1 crore due to a higher base, which is evident on a QoQ comparison, where it surged 147.6%. Similarly, revenue for MCX India surged 52.3% YoY to Rs 253 crore, with net profit rising 464.2% YoY to Rs 111 crore due to a lower base in the corresponding quarter during the previous year.

The capital markets industry registered an overall revenue and net profit growth of 60.1% and 73.8% respectively, in Q1FY25. Firms like Motilal Oswal Financial Services, ICICI Securities and Angel One contributed significantly to this surge.

Consumer electronics and realty ride the tide of better living standards

The consumer electronics industry saw average revenue growth of 51.7% YoY, while net profit surged 139.5%. Once considered a luxury, room air-conditioners (AC) have become mainstream as summers get hotter. AC manufacturers like Voltas and Blue Star reported net profit growth of 158.5% and 102.6% respectively in Q1FY25, driven by high demand. None of the above-mentioned companies were able to keep up with the rising demand in the peak summer months of April to June. This led them to announce huge capex in FY25 in a bid to double their manufacturing capacity by FY26, to prepare for the next summer.

Another consumer electronics front-runner, Dixon Technologies saw revenue and net profit almost doubled on a YoY basis in Q1FY25 driven by the Make in India initiative. The rise in sales was driven by their mobile and electronic manufacturing services (EMS) division. This division saw revenue growth of 189% YoY to Rs 5,192 crore, and contributed 79% to the total revenue in Q1FY25, compared to 55% during the same period last year.

Meanwhile, the realty industry had a mixed performance in Q1FY25, with both winners and losers. However, the industry registered an average revenue and net profit growth of 24.9% and 140.6% respectively. Firms like Macrotech Developers, Oberoi Realty and Brigade Enterprises contributed significantly to the growth of the industry.

Gems & jewellery industry moderates in Q1, while the movies & entertainment industry witnesses a decline

Industry leader, Titan saw its revenue moderate in Q1FY25 driven by rising gold prices which led to subdued demand. Meanwhile, Kalyan Jewellers India and Senco Gold saw their net profit surge 23.5% and 85.3% respectively on a YoY basis driven by healthy same-store-sales growth and new store additions. On the contrary, Rajesh Exports’ share price continues to hit new lows as its net profit falls to 96.2% YoY to Rs 12 crore due to high operating costs.

The movies and entertainment industry also registered a decline in their business owing to general elections and a cricket-heavy season which resulted in a 13% YoY drop in movie releases. PVR INOX’s revenue and net profit declined on a YoY basis by 8.8% and 119% respectively in Q1FY25. Similarly, Prime Focus’ revenue and net profit declined on a YoY basis by 32.8% and 75.3% respectively.

Healthcare facilities & fertilizers industry show early signs of recovery

Both healthcare facilities and fertilizers industries reported average revenue moderation corresponding to the same quarter during the previous year but delivered positive net profit growth on a YoY basis in Q1FY25.

The healthcare facilities industry’s average revenue growth declined by 3.1% in Q1, but the net profit surged by 488% on a YoY basis. Apollo Hospitals Enterprise, Fortis Healthcare and Aster DM Healthcare contributed significantly to this surge in net profit. Apollo Hospitals witnessed growth across all segments, driven by higher occupancy and outpatient volumes. Similarly, Fortis’ occupancy increased from 64% in Q1 last year to 67% in Q1FY25 leading to higher revenue per occupied bed.

Similarly, the fertilizer industry saw its average revenue growth decline by 5.7% in Q1FY25, however, net profit surged 12% YoY driven by forecasts of a good monsoon this year. National Fertilizers and Chambal Fertilisers & Chemicals saw moderate revenue growth, but net profit rose 92.8% and 32.4% respectively on a YoY basis.

 
Trendlyne Marketwatch
Trendlyne Marketwatch
27 Aug 2024
Market closes flat, Shilpa Medicare gets USFDA approval for its Bortezomib injection
By Trendlyne Analysis

Nifty 50 closed at 25,017.75 (7.2, 0.0%) , BSE Sensex closed at 81,711.76 (13.7, 0.0%) while the broader Nifty 500 closed at 23,604.85 (43.1, 0.2%). Market breadth is in the green. Of the 2,246 stocks traded today, 1,228 showed gains, and 997 showed losses.

Indian indices erased their gains from the afternoon session to close flat. The Indian volatility index, Nifty VIX, fell 1.2% and closed at 13.6 points. Zee Entertainment Enterprises closed sharply higher as it resolved all disputes related to the merger with Sony Pictures Networks India in a non-cash settlement.

Nifty Midcap 100 and Nifty Smallcap 100 closed higher. Nifty Media and S&P BSE Telecom closed in the green. According to Trendlyne’s sector dashboard, Hardware Technology Equipment emerged as the best-performing sector of the day, with a rise of 4.5%.

European indices traded higher, except Switzerland’s SMI index which is trading in the red. Asian indices closed mixed. US index futures traded higher, indicating a positive start to the trading session. Edgar Bronfman Jr withdrew from the bidding process to acquire Paramount Global. The media executive had previously submitted a $6 billion bid to acquire the media conglomerate on August 20.

  • Money flow index (MFI) indicates that stocks like Minda Corp, Trent, Craftsman Automation, and Poly Medicure are in the overbought zone.

  • DEE Development Engineers secures a Rs 26 crore order from L&T Energy Hydrocarbon. The order involves providing comprehensive piping spool fabrication services, including post-weld heat treatment, blasting, painting, and related tasks.

  • Zee Entertainment Enterprises surges as it resolves all disputes related to the merger with Sony Pictures Networks India in a non-cash settlement. The companies also agree to withdraw all claims in the ongoing arbitration at the Singapore International Arbitration Centre and all related legal proceedings initiated in the National Company Law Tribunal (NCLT).

  • Shriram Finance, HDFC Life Insurance, SBI Life Insurance, and Tata Motors outperform their respective industries by more than 10 percentage points in the past quarter.

  • Reports indicate that a surprise inspection has been underway at Granules India's Gagillapur facility in Hyderabad since yesterday. This facility, which handles formulations and PFI businesses, accounted for over 70% of the company's revenue in Q1FY25.

  • Shilpa Medicare rises sharply following the USFDA approval for its Bortezomib injection, used to treat blood plasma cell cancer. Bortezomib is crucial for treating multiple myeloma and specific types of lymphoma.

  • Reports suggest that nearly 5.2 lakh shares (2% stake) of Rolex Rings, amounting to Rs 126 crore, have changed hands in a block deal at an average price of Rs 2,519 per share.

  • Sharekhan keeps its 'Buy' call on ICICI Lombard General Insurance with an upgraded target price of Rs 2,550 per share. This indicates a potential upside of 18.5%. The brokerage believes the company's premium market share, focus on balancing growth, and risk selection using data analytics will help improve profitability. It expects net profit to grow at a CAGR of 13.6% over FY25-27.

  • South Korea-based LG Electronics reportedly considers an initial public offering for its India business, to help reach its target of $75 billion in revenue from the electronics segment by 2030.

  • RailTel Corp of India rises as it secures a work order worth Rs 70.9 crore from Eastern Railway to implement unified communication Infrastructure. This includes local area network (LAN) infrastructure, internet protocol exchange, voice over internet protocol (VoIP) based control communication, and an IP-multiprotocol label switching network across eastern railway.

  • Adani Group-owned Holderind Investments sells 7 crore shares (2.8% stake) in Ambuja Cements worth Rs 4,251 crore in a block deal. Conversely, GQG Partners acquires a 1.8% stake in the company worth Rs 2,746.8 crore at an average price of Rs 625.5 per share.

  • Bharti Airtel rises as it enters into a partnership with Apple to provide exclusive Apple TV+ and Apple Music offers in India. Customers with Airtel Xstream plans will receive Apple TV+ with premium Airtel plans, while Wynk Premium subscribers can access Apple Music with exclusive deals.

  • Brokerages believe the Indian cement sector will remain under pressure, with a possible recovery in the second half of FY25. The weak pricing environment of 2024 is expected to persist until the end of the monsoon season, which continues to dampen demand. Nomura notes that price hikes were led by the south and central regions, with increases of Rs 25 and Rs 22 per bag, respectively. However, it anticipates a reduction in these prices.

  • Ceigall India rises sharply as its Q1FY25 net profit grows 76.6% YoY to Rs 77.9 crore. Revenue rises 26.5% YoY to Rs 822.4 crore during the quarter, driven by improvements in annuity projects and engineering, procurement & construction (EPC) segments. The company appears in a screener of stocks with improving annual profits over the last two years.

  • Rail Vikas Nigam rises as it emerges as the lowest bidder (L1) for an order worth Rs 111.4 crore from Southern Railway to provide a multi-section digital axle counter (MSDAC) and replace audio frequency track circuits (AFTCs) in the Chennai Division’s automatic block signalling sections.

  • JSW Infrastructure rises sharply as Jefferies reportedly initiates coverage on the stock with a 'Buy' call and a target price of Rs 375 per share. This indicates a potential upside of 16.7%. The brokerage is positive on the private sector ports in India as it expects the companies to benefit from market share gains, expansions and acquisitions.

  • Anil Gupta, Managing Director of KEI Industries, projects a conservative 16-17% revenue growth and 11% margins for FY25. He notes strong demand from solar and energy projects, with exports expected to account for 15-16% of sales, marking a 50% YoY increase. Gupta also highlights the growing demand for extra high voltage (EHV) and flexible high voltage (FHV) cables, especially at data centers.

  • Medi Assist Healthcare Services surges as its wholly owned subsidiary, Medi Assist Insurance TPA, announces plans to acquire a 100% stake in Paramount Health Services & Insurance TPA from Fairfax Asia and the Shah family in a deal valued at over Rs 400 crore.

  • Bondada Engineering surges to a new all-time high of Rs 3,684.5 per share as it bags multiple orders worth Rs 575.7 crore from Lumina Clean Energy, Purelight Energy, and VVKR Photovoltaics Energy to set up grid-connected solar power plants.

  • JSW Energy rises as its wholly owned subsidiary, JSW Neo Energy, receives a letter of award (LoA) from Maharashtra State Electricity Distribution Company (MSEDCL) to set up a 200 MW wind-solar hybrid power project.

  • Reports suggest that 1.3 crore shares (3.3% equity) of Tata Technologies, amounting to Rs 1,367.4 crore, have changed hands in a large trade.

  • GPT Infraprojects is rising as its board of directors approves the qualified institutional placement (QIP) of equity shares at a floor price of Rs 183.8 per share.

  • Hindustan Unilever receives a tax demand worth Rs 962.8 crore from the Deputy Commissioner of Income Tax Department, Mumbai, for the non-deduction of TDS while making payment for the acquisition of India HFD IPR.

  • Coforge is rising as Motilal Oswal Funds buys a 1.9% stake (approx 2 crore shares) through a block deal.

  • UltraTech Cement raises $500 million (Rs 4,196.5 crore) through a sustainability-linked loan with six participating banks.

  • Nifty 50 was trading at 25,029.85 (19.3, 0.1%), BSE Sensex was trading at 81,656.24 (-41.9, -0.1%) while the broader Nifty 500 was trading at 23,596.40 (34.7, 0.2%).

  • Market breadth is in the green. Of the 1,927 stocks traded today, 1,208 were in the positive territory and 680 were negative.

Riding High:

Largecap and midcap gainers today include Tata Elxsi Ltd. (8,971.40, 16.8%), JSW Infrastructure Ltd. (332.50, 7.6%) and REC Ltd. (617.35, 4.7%).

Downers:

Largecap and midcap losers today include Syngene International Ltd. (827.90, -3%), Cummins India Ltd. (3,768.60, -2.4%) and PB Fintech Ltd. (1,777.95, -2.3%).

Crowd Puller Stocks

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

Top high volume gainers on BSE included Tata Investment Corporation Ltd. (7,385.45, 19.5%), Tata Elxsi Ltd. (8,971.40, 16.8%) and Zee Entertainment Enterprises Ltd. (150.83, 11.6%).

Top high volume loser on BSE was Sona BLW Precision Forgings Ltd. (707.45, -1.2%).

Gujarat Ambuja Exports Ltd. (145.91, 7.9%) was trading at 12.7 times of weekly average. JSW Infrastructure Ltd. (332.50, 7.6%) and eClerx Services Ltd. (2,809.25, 1.9%) were trading with volumes 10.1 and 8.6 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

46 stocks hit their 52 week highs,

Stocks touching their year highs included - Akzo Nobel India Ltd. (3,444.75, 6.4%), Ashok Leyland Ltd. (262.15, 0.8%) and Aurobindo Pharma Ltd. (1,551.95, 0.3%).

13 stocks climbed above their 200 day SMA including Tanla Platforms Ltd. (977.65, 4.2%) and SBI Cards and Payment Services Ltd. (736.75, 2.3%). 3 stocks slipped below their 200 SMA including ZF Commercial Vehicle Control Systems India Ltd. (15,321.50, -1.8%) and Route Mobile Ltd. (1,581.95, -0.8%).

 
Trendlyne Marketwatch
Trendlyne Marketwatch
26 Aug 2024
Market closes higher, IDFC gets a Rs 202.5 crore tax refund from the IT Dept for AY 23-24
By Trendlyne Analysis

Nifty 50 closed at 25,010.60 (187.5, 0.8%) , BSE Sensex closed at 81,698.11 (611.9, 0.8%) while the broader Nifty 500 closed at 23,561.75 (143.1, 0.6%). Market breadth is neutral. Of the 2,287 stocks traded today, 1,139 showed gains, and 1,126 showed losses.

Indian indices maintained their gains from the morning session to close higher. The Indian volatility index, Nifty VIX, rose 1.8% and closed at 13.8 points. Shilpa Medicare closed sharply higher as it announced the successful completion of phase-3 studies for its novel product SMLNUD07 – NorUDCA, used to treat non-alcoholic fatty liver disease (NAFLD).

Nifty Midcap 100 and Nifty Smallcap 100 closed higher. Nifty FMCG and Nifty Consumer Durables closed in the green. According to Trendlyne’s sector dashboard, Healthcare Equipment & Supplies emerged as the best-performing sector of the day, with a rise of 3.6%.

European indices traded mixed. Asian indices closed mixed. US index futures traded mixed, indicating a cautious start to the trading session. Crude oil prices traded higher amid concerns that any potential widening of the conflict in the Middle East could disrupt regional oil supplies. Federal Reserve Chair Jerome Powell's comment "The time has come for policy to adjust" has also improved the global economic and fuel demand outlook.

  • Relative strength index (RSI) indicates that stocks like PCBL, Minda Corp, Glenmark Pharmaceuticals, and Central Depository Services (India) are in the overbought zone.

  • Hinduja Global rises sharply as Legends Global Opportunities acquires 7.1 lakh shares (1.5% stake) at Rs 885 per share. Meanwhile, New Leaina Investments sells 3.6 lakh shares (0.8% stake) in the company at Rs 904 each.

  • One97 Communications falls sharply as SEBI reportedly issues a show cause notice to its founder, Vijay Shekhar Sharma, for allegedly misrepresenting facts during its initial public offering (IPO) in November 2021. The regulator has also issued show cause notices to board members of the company who served during the IPO.

  • IDFC receives a tax refund of Rs 202.5 crore from the Income Tax Department for AY 23-24.

  • Vivek Lohia, Managing Director of Jupiter Wagons, expects strong demand for freight rolling stock in the coming years. He highlights that the company will invest an additional Rs 2,000 crore in Bonatrans' business, with a focus on the wagon business and components for passenger and freight transportation.

  • Honasa Consumer surges to hit its all-time high of Rs 537.9 after the National Company Law Tribunal approves its amalgamation with Just4Kids Services and Fusion Cosmeceutics. The NCLT also waives the requirement for shareholder meetings and directs the company to notify the regulatory authorities.

  • UNO Minda’s joint venture with Tokai Rika, Tokai Rika Minda India, announces an investment of Rs 200 crore to set up a new manufacturing facility in Neemrana, Rajasthan. The plant will produce smart keys, shift levers, and seat belts, with a monthly capacity of 3.8 lakh units.

  • IT stocks like Persistent Systems, HCL Technologies, Wipro, and Tech Mahindra rise more than 2% in trade. All constituents of the broader Nifty IT index are trading in the green.

  • Rajiv Bajaj, Managing Director of Bajaj Auto, highlights the company’s target to achieve sales of 40,000 units of its CNG motorcycle Freedom 125. He also announces plans to launch affordable and premium electric scooters in FY25, post the festive season.

  • Motilal Oswal retains its 'Buy' call on Mankind Pharma with an upgraded target price of Rs 2,760 per share. This indicates a potential upside of 15.6%. The brokerage remains positive on the stock owing to its expansion in major therapies portfolio, growth in chronic therapies market share, and presence in metro/Tier-I cities. It projects the company's revenue to grow at a CAGR of 7.4% over FY25-26.

  • EFC receives a letter of intent (LOI) to acquire a prime property valued at over Rs 80 crore. The property is located in Pune, covers 49,556 square feet, and has a seating capacity of more than 1,500 people.

  • Shilpa Medicare rises sharply to hit its all-time high of Rs 777.9 as it announces the successful completion of phase-3 studies for its novel product SMLNUD07 – NorUDCA. This product is used to treat non-alcoholic fatty liver disease (NAFLD), which reportedly affects 188 million people in India.

  • Jefferies initiates a ‘Buy’ rating on recently listed Emcure Pharmaceuticals with a target price of Rs 1,600. The brokerage highlights the company’s strong expertise in developing complex molecules, and notes the advantage due to minimal exposure to the volatile US market.

  • Transport Corp of India falls sharply as its board of directors approves the buyback of 13.3 lakh shares (or a 1.7% stake) for Rs 1,200 per share, totaling Rs 160 crore. The board sets September 4 as the record date for the buyback.

  • Medplus Health Services falls sharply as nearly 1.5 crore shares (12.8% stake), amounting to Rs 950 crore, reportedly change hands in a block deal at an average price of Rs 616 per share.

  • NIIT rises to its 20% upper circuit as Ramesh Damani buys 8 lakh shares (0.6% stake) for Rs 10.2 crore in a bulk deal on Friday at an average price of Rs 127.5 per share.

  • According to BofA Securities, the auto sector experienced a sluggish August, with the upcoming month being crucial due to early festivals. Demand trends were weak in the passenger vehicles segment, showing a 10% YoY decline, with elevated channel inventory and discounts. In contrast, demand for two-wheelers remains stable. The brokerage anticipates a recovery for commercial vehicles in the second half of FY25.

  • Interarch Building Products' shares debut on the bourses at a 44.3% premium to the issue price of Rs 900. The Rs 600.3 crore IPO received bids for 93.5 times the total shares on offer.

  • KR Choksey maintains its 'Reduce' rating on Balkrishna Industries with a lower target price of Rs 2,768 per share. This indicates a potential upside of 2.8%. The brokerage is cautious on the stock due to rising freight and raw material costs, low demand, and high inventory levels. It expects the company's revenue to grow at a CAGR of 14.5% over FY25-26.

  • Lemon Tree Hotels signs a license agreement for a 175-room property in Surat under its upscale brand, Aurika Hotels & Resorts. The property is expected to open in FY30 and will be managed by Lemon Tree Hotels’ subsidiary, Carnation Hotels.

  • Reports suggest that 1.3 crore shares (1.7% equity) of Au Small Finance Bank, amounting to Rs 804 crore, have changed hands in a block deal.

  • Bharat Heavy Electricals is rising as it bags an order worth more than Rs 11,000 crore from Adani Power and its subsidiary, Mahan Energen. The order is to set up three supercritical thermal power projects with a capacity of 2x800 MW in Kawai, Rajasthan and Madhya Pradesh.

  • Dr Reddy's Laboratories is falling as it receives a Form 483 from the US FDA with three observations after completing a product-specific pre-approval inspection (PAI) at its formulations manufacturing facility in Andhra Pradesh.

  • Ashoka Buildcon rises as it emerges as the lowest bidder for an order worth Rs 478 crore from the Mumbai Metropolitan Region Development Authority (MMRDA) to design and construct an elevated road from Kalyan-Murbad Road to Pune Link Road, crossing the Karjat-Kasara railway line.

  • KEC International rises sharply as its transmission & distribution (T&D) and cables businesses bag orders worth Rs 1,079 crore from India, the Middle East, and the Americas. The orders are for 765 kV/ 400 kV transmission lines in India, 230/132 kV transmission lines in Saudi Arabia and Oman, upgrading a 400 kV transmission line in the UAE, and supply of towers, hardware, and poles in the Americas.

  • Nifty 50 was trading at 24,891.05 (67.9, 0.3%), BSE Sensex was trading at 81,388.26 (302.1, 0.4%) while the broader Nifty 500 was trading at 23,489.90 (71.3, 0.3%).

  • Market breadth is overwhelmingly positive. Of the 2,001 stocks traded today, 1,396 were gainers and 556 were losers.

Riding High:

Largecap and midcap gainers today include Tata Elxsi Ltd. (7,683.05, 8.4%), PB Fintech Ltd. (1,819.35, 7.9%) and Macrotech Developers Ltd. (1,215.05, 4.6%).

Downers:

Largecap and midcap losers today include Zydus Lifesciences Ltd. (1,108.45, -6.0%), One97 Communications Ltd. (530.40, -4.4%) and FSN E-Commerce Ventures Ltd. (219.52, -3.2%).

Volume Shockers

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

Top high volume gainers on BSE included JM Financial Ltd. (102.55, 11.8%), Gujarat State Petronet Ltd. (376.95, 11.3%) and Motilal Oswal Financial Services Ltd. (760.10, 9.1%).

Top high volume losers on BSE were Zydus Lifesciences Ltd. (1,108.45, -6.0%) and Alembic Pharmaceuticals Ltd. (1,095.55, -0.5%).

Medplus Health Services Ltd. (637.45, 0.4%) was trading at 97.2 times of weekly average. Honasa Consumer Ltd. (508.85, 8.6%) and Craftsman Automation Ltd. (6,263.75, 6.3%) were trading with volumes 84.5 and 16.5 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

47 stocks overperformed with 52 week highs,

Stocks touching their year highs included - Aurobindo Pharma Ltd. (1,547.85, 0.6%), Bajaj Auto Ltd. (10,432.55, 0.3%) and Caplin Point Laboratories Ltd. (1,841.80, 5.3%).

9 stocks climbed above their 200 day SMA including Tata Elxsi Ltd. (7,683.05, 8.4%) and Macrotech Developers Ltd. (1,215.05, 4.6%). 5 stocks slipped below their 200 SMA including One97 Communications Ltd. (530.40, -4.4%) and Sammaan Capital Ltd. (167.52, -1.8%).