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Trendlyne Marketwatch
Trendlyne Marketwatch
13 Sep 2024
Market closes flat, Godfrey Phillips' board to consider a 2-for-1 bonus share issue
By Trendlyne Analysis

Nifty 50 closed at 25,356.50 (-32.4, -0.1%) , BSE Sensex closed at 82,890.94 (-71.8, -0.1%) while the broader Nifty 500 closed at 23,928.20 (20.9, 0.1%). Market breadth is in the green. Of the 2,268 stocks traded today, 1,396 were on the uptick, and 840 were down.

Indian indices pared their gains in the afternoon session to close flat. The Indian volatility index, Nifty VIX, declined by 4.8% and closed at 12.6 points. Adani Enterprises closed in the red as the Swiss Court reportedly froze $310 million (approx. Rs 2,600.4 crore) across multiple bank accounts in the country. This came as part of the ongoing investigation which showed significant financial activity tied to investment structures in offshore tax havens which owned Adani Group stocks.

Nifty Midcap 100 and Nifty Smallcap 100 closed in the green. BSE Realty and Nifty Media were among the top index gainers today. According to Trendlyne’s Sector dashboard, Hardware Tecnology Services emerged as the best-performing sector of the day, with a jump of over 2.2%.

Most Asian indices closed higher, except Japan’s Nikkei 225 which closed 0.8% lower. European indices are trading in the green. US index futures traded in the green, indicating a positive start to the trading session. Brent crude oil futures are trading in the green. U.S. stock futures climbed in anticipation of a 25 bps cut in interest rates next week. 30,000 Boeing employees vote to go on a strike over demands of higher pay.

  • Money flow index (MFI) indicates that stocks like FDC, Glenmark Life Sciences, Gujarat Fluorochemicals, and Jubilant Pharmova are in the overbought zone.

  • Max Healthcare partners with Lakshdeep Group to acquire a 64% stake in Jaypee Healthcare (JHL), following National Company Law Appellate Tribunal (NCLAT) approval. The deal includes an option to acquire an additional 36% stake and involves raising up to Rs 1,000 crore in short-term loans.

  • Adani Enterprises is falling as the Swiss Court reportedly freezes $310 million (approx. Rs 2,600.4 crore) across multiple bank accounts in the country. This comes as part of the ongoing investigation which showed significant financial activity tied to investment structures in offshore tax havens, like the British Virgin Islands (BVI), Mauritius, and Bermuda that owned Adani stocks.

  • RailTel Corporation of India surges as it a receives a work order worth Rs 19.7 crore from Northern Railways to provide double distant signals for dedicated freight corridor feeder routes in the Lucknow division.

  • According to Prime Database, the Indian real estate sector is enjoying a remarkable year in the capital markets, having raised Rs 14,572 crore through equity issuances such as IPOs and QIPs by August 2024. This positions 2024 as the second-best year on record since the peak of 2007.

  • Foreign institutional investors buy equity worth Rs 8,909.3 crore in the market over the past week, according to Trendlyne's FII dashboard. Index options witness the highest outflow of Rs 32,336.2 crore from foreign investors. Meanwhile, mutual funds are net buyers in the equity market, investing Rs 727.9 crore during the same period.

  • Great Eastern Shipping Co sells its 2005-built Suezmax crude tanker, Jag Lalit, with a deadweight tonnage of about 158,344. The company will deliver the vessel to the new owner by Q3FY25.

  • Godfrey Phillips surges to its all-time high of Rs 7,431 as its board of directors are scheduled to meet on September 20 to consider issuing a 2-for-1 bonus shares to its equity shareholders.

  • Ford Motor plans to reopen a manufacturing plant in Tamil Nadu, India, specifically for exports. The company has submitted a letter of intent to the state's government, following discussions with the chief minister. Ford ceased domestic car production in India in 2021 due to low volumes and ended its export operations in 2022.

  • Sharekhan retains its 'Buy' call on Marico with an upgraded target price of Rs 821. This indicates a potential upside of 20.9%. The brokerage believes that the company's portfolio diversification to premium foods and personal care products will improve revenue growth in the long-term. It expects the company's revenue to grow at a CAGR of 11.4% over FY25-27.

  • Panacea Biotech surges to its 52-week high of Rs 317.9 per share as it receives a long-term loan worth $20 million from the US International Development Finance Corp (DFC). The proceeds from the loan will be used to expand the capacity of drug substance antigens manufacturing used in its hexavalent vaccine EasySix.

  • Transformers & Rectifiers (India) surges as it secures an order worth Rs 114 crore from Rajasthan Rajya Vidyut Prasaran Nigam (RRVPNL) to manufacture a 50 Mega Volt-Ampere (MVA), 132/33 Kilovolt (KV) power transformer.

  • Manappuram Finance and Muthoot Finance rise as high gold prices boost loan growth for gold loan companies and improve the loan-to-value ratio. Gold reached a record high after rising more than 2% yesterday, driven by the continued decline of the US dollar ahead of an anticipated Federal Reserve rate cut next week.

  • Zee Entertainment Enterprises rises as it receives approval from the National Company Law Tribunal (NCLT) to withdraw its merger application with Sony Pictures Networks India and Bangla Entertainment, reversing the previous sanction order from August 10, 2023.

  • HCL Technologies completes acquisition of Paris-based software company Zeenea SAS for aprrox. Rs 222.3 crore (€23.9 million). Zeenea’s platform offers metadata management, data cataloging, and governance solutions, enabling organizations to better manage their data assets.

  • BLS International signs an agreement to acquire a 100% stake in Citizenship Invest (CI), a Dubai-based advisory firm, for $31 million (approximately Rs 260 crore). This acquisition expands BLS's services in visas and consular support, particularly for long-term visas such as citizenship and residency.

  • The Solvent Extractors’ Association of India (SEA) reports that India's edible oil imports in August 2024 totaled 15.63 lakh tonnes, down 16% YoY. The share of palm oil imports decreased slightly to 57% from 59%, while the share of soft oils increased marginally to 43% from 41% compared to the previous year.

  • HPL Electric rises as it bags an order worth Rs 143.8 crore to supply smart and conventional meters for a repeat customer.

  • Tata Power rises as it signs a memorandum of understanding (MoU) with its subsidiary, Tata Power EV Charging Solutions, to set up 200 fast-charging stations for electric commercial vehicles (CVs) in Mumbai, Delhi, Chennai, Bengaluru, and Kolkata.

  • Bharat Petroleum Corp is rising as it plans a capex of Rs 1,138 crore to expand its capacity of the Cochin Coimbatore Karur (CCKPL) and Irugur Devangonthi (IDPL) pipelines. CCKPL's capacity will grow to 7 million metric tonnes per annum (MMTPA) from 3.3 MMTPA, while IDPL's capacity will increase to 3.5 MMTPA from 2.4 MMTPA.

  • State Bank of India (SBI) approves a Rs 10,050 crore loan for Damodar Valley Corporation (DVC) to support its 1,600 MW ultra-supercritical thermal power project in Koderma, Jharkhand. The Ministry of Power has designated this project as a key capacity addition initiative for 2030.

  • Godrej Agrovet surges as 24.7 lakh share (or a 1.3% stake), worth Rs 194.1 crore, reportedly change hands in a block deal at an average price of Rs 785 per share.

  • Patanjali Foods falls sharply as 1.2 crore shares (or a 3.3% stake), worth Rs 2,223.4 crore, reportedly change hands in a block deal. Patanjali Group is the likely seller in the transaction.

  • Nazara Technologies is rising as it acquires a 47.7% stake in Moonshine Technology for Rs 832 crore. The company will also invest an additional Rs 150 crore as primary capital in Moonshine in exchange for compulsory convertible preference shares.

  • H.G. Infra Engineering receives an order worth Rs 716.1 crore from Central Railway to construct a new broad-gauge line between the Dhule and Nardana sections under the engineering, procurement, and construction mode.

  • Nifty 50 was trading at 25,343.50 (-45.4, -0.2%) , BSE Sensex was trading at 83,091.55 (128.8, 0.2%) while the broader Nifty 500 was trading at 23,907.40 (0.1, 0%)

  • Market breadth is highly positive. Of the 1,931 stocks traded today, 1,322 were on the uptick, and 564 were down.

Riding High:

Largecap and midcap gainers today include Linde India Ltd. (8,229.35, 8.5%), IDBI Bank Ltd. (94.92, 7.9%) and Oracle Financial Services Software Ltd. (12,261.90, 5.9%).

Downers:

Largecap and midcap losers today include Zomato Ltd. (272.90, -3.9%), Patanjali Foods Ltd. (1,860.95, -3.7%) and Adani Power Ltd. (633.45, -2.7%).

Movers and Shakers

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

Top high volume gainers on BSE included Jubilant Pharmova Ltd. (1,191, 13.8%), Linde India Ltd. (8,229.35, 8.5%) and IDBI Bank Ltd. (94.92, 7.9%).

Top high volume loser on BSE was Patanjali Foods Ltd. (1,860.95, -3.7%).

Godrej Agrovet Ltd. (795.45, 1.8%) was trading at 31.1 times of weekly average. Home First Finance Company India Ltd. (1,203.15, 6.6%) and Westlife Foodworld Ltd. (853.30, 6.6%) were trading with volumes 24.1 and 14.9 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

57 stocks overperformed with 52 week highs,

Stocks touching their year highs included - Apollo Hospitals Enterprise Ltd. (7012, -0.7%), Aurobindo Pharma Ltd. (1,565, 0.2%) and Bajaj Auto Ltd. (11,737.15, 0.1%).

28 stocks climbed above their 200 day SMA including IIFL Finance Ltd. (521.45, 7.2%) and Westlife Foodworld Ltd. (853.30, 6.6%).

 
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The Baseline
12 Sep 2024
Between Nifty Smallcap, Midcap and Nifty50, one index comes on top | Screener: Stocks with PE lower than longer-term averages
By Tejas MD

On September 3, the Nifty 50 recorded its longest winning streak (14 days) since its inception in 1996. There have been other, shorter rallies like this before, and an analysis of the past six such events reveals a pattern: the index usually fell by 3% on average in the 30 days after a rally, according to Trendlyne's share price history and Samco. Whether this pattern will repeat this time around, is still an open question.

Nifty 50 has delivered negative returns historically after a long gaining streak

Indian indices have surged over the past year, driven by robust economic growth and lower inflation. While India’s growth story looks strong, current market valuations are beginning to worry both investors and analysts.

The Nifty 50 soared 26.3% over the past year. But the star performer has been the Nifty Smallcap 100, which posted a remarkable 50.8% gain in the same period.

Nifty Smallcap 100 remains the top gainer in the past year with a 50.8% rise

With such a rise across all three indices, is the stock market valuation a balloon about to burst?

In this week’s Analyticks,

  • Valuation check: We look into the Nifty Smallcap, Midcap and Nifty50
  • Screener: Stocks which have risen over the past quarter, with PE TTM lower than 3-year, 5-year, and 10-year averages

The winner in the middle: Nifty Midcap beats Smallcap and Nifty 50 indices

While the smallcap index has outperformed its peers over the past year, the longer-term view tells us a different story. When looking at 3, 5, and 10-year time frames, the Nifty Midcap 100 is the stronger performer by far, outshining both the Nifty Smallcap 100 and Nifty 50.

Nifty Midcap 100 outperforms peers in 10, 5 and 3 year gains

The Nifty Midcap 100 has historically commanded a higher price-to-earnings (PE) ratio due to its stronger growth potential. Currently, it has the highest PE among the three major indices, at 44.2. This elevated PE is also a result of a sharp drop in its earnings per share (EPS) following the Q4FY24 results.

Nifty Midcap 100's EPS falls in the past year, Nifty 50 on top in EPS growth

Q1FY25 results did not help the Nifty Midcap’s EPS to recover to March 2024 levels. This was due to companies like HPCL (Oil & Gas), Bharat Dynamics (Defence), Tata Chemicals(Commodity Chemicals) and BSE (Exchange) reporting a significant fall in their EPS. As a result, the Nifty Midcap continues to trade at a high PE. 

Bhaskar Laxminarayan, chief investment officer for Asia at Julius Baer says, “Every investor understands India's growth story, but valuation is a worry. Valuation of largecaps is not as much of a worry as with small and midcaps.”

Nifty 50 is analysts’ top pick, backed by historical data

When examining the valuations of the three indices, the Nifty Smallcap 100 stands out with a current PE of 30.3, well above its historical average. But this elevated valuation is somewhat supported by its strong performance in Q1FY25, where it posted the highest year-on-year (YoY) net profit growth among the three indices.

1 Yr Forward PE of indices below current PE

According to Trendlyne’s results dashboard, the revenue and net profit of the Nifty Smallcap 100 rose 11.9% and 50.9% YoY in Q1FY25 respectively. 

The big jump in net profit was mainly due to Raymond’s net profit rising 591% YoY due to income from discontinued operations. After excluding this, net profit growth for Nifty Smallcap comes to 15%. Nifty 50 and Nifty Midcap’s net profit increased by 6.8% and 9.2% respectively.

The strong growth in smallcaps is expected to continue, boosted by India's GDP growth. This is reflected in the smallcap index's much lower forward PE of 21, compared to its current PE of 30.3. The lower forward PE suggests that high profit growth is expected to continue for these smallcap companies, potentially justifying the current valuation. But a major earnings miss could trigger a sharp correction in the index.

In comparison, the Nifty 50 appears more reasonably valued. Its current PE is below its 5 and 10-year historical averages. It has a forward PE of a very modest 20.5, which makes it even more appealing valuation wise. Goldman Sachs’ Asia-Pacific strategist Sunil Koul said, “One of the key views we have is that you should see a rotation in the Indian market. It was the year of mid and small-caps, but that seems to be changing already over the past month.”

PSUs, auto and banking & finance sectors dominate the top gainer lists

Public sector units (PSUs) have had a great year, and it is not surprising to see some of these becoming star stocks in the Nifty 50, Nifty Midcap 100 and Nifty Smallcap 100 indices. Sectors that stand out are Banking and Finance and Auto. 

Banking and finance stocks are in focus with interest rate cuts on the horizon. The US Federal Reserve is expected to lower rates this month, and India’s RBI Monetary Policy Committee (MPC) will meet on October 9 to decide on its rate action.

Lower interest rates drive loan demand, benefiting banks. However, the top banks will face the challenge of keeping margins up as rates decline. Despite this, the banking and finance sector is attractively valued, with a relatively low PE ratio of 20.1, and the sector is up 10.1% over the past quarter.

Of the top five highest gainers in the Nifty 50, two are from the auto sector –  Bajaj Auto and Hero Motocorp. The auto sector has been on the rise with strong demand in the rural segment driving sales in the past quarter. The sector is also up 59.4% in the past year, according to Trendlyne’s sector dashboard, and has a PE ratio of 36.4 as opposed to Nifty 50’s 23.5. 

Banking and auto stocks outperform in the past year

The other three top gainers in the list include Bharat Petroleum Corp, Coal India and Adani Ports & Special Economic Zone. 

Among the Nifty Smallcap 100, Banking and Finance sector stocks appear twice. Housing and Urban Development Corp (HUDCO) and Multi Commodity Exchange of India (MCX) are from this sector. 

Other top-performing stocks include Rail Vikas Nigam (RVNL), Oil India, Suzlon Energy, Cochin Shipyard, NBCC, Prestige Estates Projects, Oracle Financial Services and Tata Investment Corp.  

Screener: Low PE stocks which have risen over the past quarter with PE TTM lower than 3-year, 5-year, and 10-year averages

Auto stocks’ TTM PE is lower than their 3yr average PE

PE ratio shows the stock price of the company relative to its earnings per share (EPS). It is widely used by investors and analysts reviewing a stock's relative valuation. This screener shows stocks with trailing twelve months (TTM) PE values less than average three-year, five-year and ten-year PE values. 

The screener is dominated by stocks from the automobiles & auto components, and pharmaceuticals & biotechnology sectors. Major stocks that feature in the screener are Great Eastern Shipping, JK Paper, Bharat Petroleum Corp, Tata Motors, Welspun Corp, Natco Pharma, Bombay Burmah Trading and Ceat.

Great Eastern Shipping’s TTM PE stands at 6.4 compared to its 3-year and 5-year PE at 7.3 and 8.4, respectively. The TTM PE ratio reflects the most recent earnings. The shipping company’s revenue and net profit increased by 18.1% YoY and 18% YoY, respectively in Q1FY25. This rise in earnings has led to a lower TTM PE ratio compared to the 3-year and 5-year average P/E ratios.

JK Paper also features in the screener with its TTM PE falling to 8 from its 3-year average of 10.3 and 5-year average of 8.2. This paper & paper products company’s TTM PE declined on the back of its stock price falling by 7.4% over the past month due to a disappointing Q1FY25 due to margin pressures. Despite a 16% rise in sales volume, net sales growth was offset by higher raw material costs, which rose 23% YoY. Other expenses increased 40% YoY due to an acquisition. Consequently, EBITDA margin fell by 1376 bps YoY to 16.4%, and net profit dropped 55% YoY to Rs 1.4 billion.

However, IDBI Capital expects the company’s margins to improve in Q2FY25 on account of price hikes across its product portfolio. 

You can find some popular screeners here.


 
Trendlyne Marketwatch
Trendlyne Marketwatch
12 Sep 2024
Market closes higher, Minda Corp's board approves raising Rs 1,000 crore via a QIP
By Trendlyne Analysis

Nifty 50 closed at 25,388.90 (470.5, 1.9%) , BSE Sensex closed at 82,962.71 (1,439.6, 1.8%) while the broader Nifty 500 closed at 23,907.35 (376.1, 1.6%). Market breadth is in the green. Of the 2,253 stocks traded today, 1,401 were in the positive territory and 823 were negative.

Indian indices closed in the green, with the benchmark Nifty 50 index touching a record high of 25,430.4 points. The Indian volatility index, Nifty VIX, declined by 3.3% and closed at 13.2 points. NBCC (India) signed a Rs 1,600 crore memorandum of understanding (MoU) with Mahanagar Telephone Nigam (MTNL) to jointly develop a 13.9 acre land parcel owned by MTNL in Delhi.

Nifty Midcap 100 and Nifty Smallcap 100 closed in the green, taking cues from the benchmark index. Nifty Metal and BSE Metal were among the top index gainers today. According to Trendlyne’s Sector dashboard, Telecom Services emerged as the best-performing sector of the day, with a jump of over 3.1%.

Asian indices closed mixed while European indices are trading in the green except Russia’s MOEX & RTSI. US index futures traded in the green, indicating a positive start to the trading session. Brent crude oil futures are trading in the green. U.S. stock futures climbed after a tech-driven rally on Wall Street in the previous session. Global semiconductor stocks also rose, with Nvidia's shares jumping 8.2% on Wednesday, marking its largest one-day gain in six weeks.

  • Granules India sees a short buildup in its September 26 futures series, with open interest increasing by 120.2% and a put-call ratio of 1.

  • Wanbury surges to its 5% upper circuit as it announces plans to launch two new active pharmaceutical ingredients, Dextromethorphan, a cough suppressant, and Ketamine, an anaesthetic used for medical purposes.

  • Ashika Credit Capital rises to its all-time high of Rs 308.6 per share as its board of directors schedules to meet on Tuesday to consider a fundraising proposal by issuing equity shares or convertible warrants.

  • Thermax rises sharply as it signs a license agreement with Ceres Power to manufacture and provide green hydrogen solutions using Ceres solid oxide electrolysis cell (SOEC) technology, covering stack modules and electrolyser systems.

  • Nifty 50 rises to a record high of 25,430.2 today, fueled by gains in financial and IT stocks, following economic data from the US that alleviated growth concerns.

  • HDFC Bank rises as reports emerge the company is in talks with global banks to offload loans worth $1 billion (approx. Rs 8,398 crore) in a bid to reduce its credit book and improve the credit-to-deposit ratio. Notable banks in discussions with HDFC Bank include Barclays Plc, Citigroup, JPMorgan Chase, and ICICI Bank.

  • Bharti Airtel rises to a new all-time high of Rs 1,609.2 after signing a deal with Sparkle for additional capacity on the Blue-Raman submarine cable system to diversify its global undersea cable network. Airtel will further diversify its global network and meet growing data demands in India and nearby regions.

  • Consumer durables stocks like Kalyan Jewellers, Aditya Birla Fashion & Retail, Havells India, and Amber Enterprises rise more than 1% in trade. All constituents of the broader BSE Consumer Durables index are trading in the green, helping it touch its all-time high of 66,009.4.

  • UBS maintains its ‘Buy’ rating on Zomato with a target price of Rs 283.6, citing optimism about the company’s growth. The brokerage highlights that Zomato vs Swiggy is a push-and-pull scenario, continuing into Q2FY25. It projects the company’s GMV to grow by 7% QoQ in Q2.

  • Varun Beverages rises sharply as it trades ex-stock split. The company had approved a 2:5 stock split, reducing the share price to Rs 635.5 from Rs 1,569.2, increasing the float in the market.

  • Minda Corp is rising as its board of directors approves raising Rs 1,000 crore through a preferential issue, qualified institutional placement (QIP), or other modes.

  • CE Info Systems rises as it partners with Zoomcar to offer car rental services on the Mappls app. The collaboration will leverage Zoomcar's fleet and Mappls' AI-powered integration to provide road trip and travel solutions.

  • Maruti Suzuki introduces a new CNG variant of the Swift hatchback in India, priced between Rs 8.2-9.2 lakh. This move is part of its eco-friendly strategy following the discontinuation of diesel models. The company aims to sell six lakh CNG vehicles by the end of FY25.

  • Kalpataru Projects International rises as it bags multiple orders worth Rs 2,774 crore from the domestic and international markets. The orders include transmission and distribution (T&D) projects overseas, and engineering, procurement, and construction (EPC) contracts for airport extensions and a residential building in India.

  • Shree Tirupati Balajee Agro Trading Company's shares debut on the bourses at an 8.4% premium to the issue price of Rs 83. The Rs 169.7 crore IPO received bids for 55.8 times the total shares on offer.

  • Bharat Petroleum Corp rises as its exploration and production arm, and its 50:50 joint venture (JV) partner, Indian Oil Corp, receives a production concession from the Supreme Council for Financial & Economic Affairs (SCFEA). The concession is for a 6,162 square kilometer (sq km) of land and gives the JV equity rights to the oil procured from the land.

  • Ola Electric Mobility, JBM Auto, and Ashok Leyland, along with other EV automakers, rise as the government approves a new Rs 10,900 crore subsidy scheme for the sector. The two-year scheme, called PM E-Drive, focuses on two-wheelers, three-wheelers, and buses, supporting 24.8 lakh electric two-wheelers, 3.2 lakh electric three-wheelers, and 14,028 electric buses.

  • Adani Ports & Special Economic Zone rises as it signs a 30-year concession agreement with Deendayal Port Authority to operate a 5.7 million tonne capacity multipurpose terminal in Kandla, Gujarat. The company secures the contract by offering Rs 200 per ton royalty.

  • Cholamandalam Investment & Finance surges to its all-time high of Rs 1,562.4 as Jefferies reportedly maintains 'Buy' on the stock with an upgraded target price of Rs 1,800 per share. This indicates a potential upside of 16%. The brokerage believes the company will benefit from the rate-cut cycle owing to its strong auto loan portfolio and focus on building a network in the non-auto business.

  • Inox Wind rises sharply as its subsidiary, Resco Global Wind Services, completes a Rs 350 crore equity raise through a preferential allotment to non-promoter investors. The funds will be used to scale up its wind energy business in India.

  • The Open Network for Digital Commerce (ONDC) has reached a new milestone of 100 million transactions in under 18 months. Namma Yatri, a ride-hailing platform on ONDC, has topped a cumulative $100 million (Rs 839.8 crore) in driver earnings and 50 million trips since its inception. CEO T Koshy highlights the platform's target to democratize e-commerce, ensuring equal participation for all segments of society, merchants, and buyers.

  • Honasa Consumer falls sharply as 3.5 crore shares (10.9% stake), worth approximately Rs 1,763.3 crore, change hands in a block deal at an average price of Rs 500 per share. Peak XV Partners, Sequoia Capital, Redwood Trust, Fireside Ventures, Stellaris Ventures, and Sofina Ventures are reportedly the sellers in the transaction.

  • Hindustan Petroleum Corp is rising as its board of directors approves the construction of a pipeline from Visakh to Raipur with an estimated capex of Rs 2,212 crore. The board has also revised its capex for the Visakh Refinery modernization project to Rs 30,609 crore, expected to be operational by October.

  • NBCC (India) rises sharply as it signs a Rs 1,600 crore memorandum of understanding (MoU) with Mahanagar Telephone Nigam (MTNL) to jointly develop a residential or commercial space at a 13.9-acre land parcel owned by MTNL in Delhi.

  • Tata Steel rises sharply as it signs a grant funding agreement worth £500 million (approx Rs 5,475.1 crore) with the UK government for its £1.3 billion project to install an electric arc furnace at Port Talbot.

  • Markets rise on early trading, Nifty 50 was trading at 25,016.35 (97.9, 0.4%), BSE Sensex was trading at 81,930.18 (407.0, 0.5%) while the broader Nifty 500 was trading at 23,665.85 (134.6, 0.6%).

  • Market breadth is ticking up strongly. Of the 1,926 stocks traded today, 1,436 were gainers and 450 were losers.

Riding High:

Largecap and midcap gainers today include Gujarat Fluorochemicals Ltd. (4,296.45, 6.5%), CG Power and Industrial Solutions Ltd. (729.15, 5.7%) and Zomato Ltd. (283.90, 4.5%).

Downers:

Largecap and midcap losers today include Biocon Ltd. (376.60, -2.3%), FSN E-Commerce Ventures Ltd. (207.69, -2%) and YES Bank Ltd. (23.43, -1.6%).

Crowd Puller Stocks

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

Top high volume gainers on BSE included Kaynes Technology India Ltd. (5,165.85, 10.8%), Engineers India Ltd. (226.91, 7.9%) and FDC Ltd. (612.65, 6.0%).

Top high volume losers on BSE were Granules India Ltd. (564.90, -16.5%), Honasa Consumer Ltd. (493.85, -5.4%) and Kama Holdings Ltd. (2,672.05, -0.9%).

Krishna Institute of Medical Sciences Ltd. (2,735.90, 2.6%) was trading at 10.0 times of weekly average. JBM Auto Ltd. (1,994.45, 3.6%) and CG Power and Industrial Solutions Ltd. (729.15, 5.7%) were trading with volumes 8.9 and 5.8 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

43 stocks took off, crossing 52 week highs,

Stocks touching their year highs included - Ajanta Pharma Ltd. (3,390, 0%), Apollo Hospitals Enterprise Ltd. (7,061.80, 2.3%) and Bajaj Auto Ltd. (11,723.50, 2.7%).

15 stocks climbed above their 200 day SMA including Engineers India Ltd. (226.91, 7.9%) and L&T Finance Ltd. (174.36, 4.9%). 10 stocks slipped below their 200 SMA including Tamilnad Mercantile Bank Ltd. (474.90, -0.8%) and ITI Ltd. (291.45, -0.6%).

 
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The Baseline
12 Sep 2024
Five stocks to buy from analysts this week - September 12, 2024
By Ruchir Sankhla

1. Bajaj Auto:

Sharekhan reiterates its ‘Buy’ rating for this 2/3 wheeler manufacturer, setting a target price of Rs 12,584, a potential upside of 7.8%. The analyst highlights that the company has seen a 9.8% increase in sales in FY25, with domestic volumes rising 12.6% and export volumes up 5.4%. While exports remain modest, recovery in the Nigerian market could drive further growth. Its CNG motorcycle, Freedom 125, is gaining popularity, and production capacity is set to expand to 50,000 units per month by January 2025.

The company is also strengthening its position in the electric vehicle (EV) market, holding a 14% share in the domestic electric 2-wheeler segment and a 36% share in the electric 3-wheeler segment. Upcoming EV product launches are expected to support future growth.

The brokerage expects the company’s volume growth to improve, supported by rural market recovery, strong 125cc sales, and festive season demand, while export recovery and CNG expansion should boost growth. The analysts anticipate a EBITDA CAGR of 19% over FY25-26 and EV/EBITDA to be 22.3 times in FY26.

2. Godrej Consumer Products:

Motilal Oswal maintains a ‘Buy’ rating on this personal products maker with a target price of Rs 1,700. This indicates an upside of 12.7%. Analysts Naveen Trivedi, Pratik Prajapati and Tanu Jindal highlight Godrej Consumer Products’ (GPCL)  strategic moves in FY24 across various geographies. In India, the company launched ‘Project Vistaar’ to improve its rural reach and expand sales channels. In Indonesia, it has adopted a distributor-led model in general trade, which it said lowered its operational costs. Additionally, GCPL’s focus on e-commerce in the US drove 15%+ growth, and now accounts for 8% of its total business.

GCPL aims to drive growth in rural markets by introducing affordable products for price-sensitive consumers. It has set up a transportation management system to streamline its delivery routes, improve demand forecasting, and reduce excess inventory.

Trivedi, Prajapati and Jindal are upbeat about GCPL’s acquisition of Raymond Consumer Care, which has added brands like Park Avenue to its portfolio. The company reduced RCCL’s inventory from 90 to 15-20 days, improving operational efficiency despite a 25% revenue drop in FY24 as it cuts excess stock. The management anticipates that the segment will generate Rs 600 crore in revenue in FY25.

3. AIA Engineering:

Asit C Mehta initiates a ‘Buy’ rating on this other industrial goods company with a target price of Rs 5,106, suggesting a upside potential of 18.2%. Analyst Abhinav Kapadia says that the company sees growth in supplying more advanced materials for mining. These materials are used to grind down gold, copper, and iron ore more efficiently than traditional ones. Currently, less than 15% of the market uses these advanced materials, suggesting a large opportunity to increase usage.

Analysts say AIA Engineering's new mill liner plant improves its products with less wear, better output, and lower costs. AIA is expected to gain a strong position in the global mining industry, similar to its leadership in the cement sector. Its partnerships with EE Milling Solutions and the purchase of MPS Australia have helped improve equipment design and cut costs for customers.

Kapadia highlighted that the company achieved a revenue, EBITDA, and PAT CAGR of 19%, 20%, and 27%, respectively, from FY21 to FY24. He expects EBITDA and PAT margins to remain stable at 29% and 24% in FY25 and FY26, despite export challenges arising from the ongoing Red Sea crisis.

4. Awfis Space Solutions:

Edelweiss maintains ‘Buy’ rating on this consumer services company with a target price of Rs 1,013, indicating a potential upside of 40%. Analysts Amit Agarwal and Rishith Shah point out that the company is set to benefit from favorable market dynamics, including a 25-27% CAGR in demand for flexible office space due to hybrid working models, increased global capability centres (GCCs), and decentralization of office space by larger firms. The company expects the average seat rental to rise by 5-6% annually.

The analysts note that the company plans to add 40,000 seats in FY25, expanding from its current inventory of 95,030 seats, and has a capex budget of around Rs 140 crore for fitouts. Their expansion strategy focuses on Tier I and Tier II cities, targeting smaller 100-200 seat centers for better pricing. The firm uses a capital-light managed aggregation model, sharing fitout costs with landlords to boost returns while maintaining an asset-light approach, without owning properties

Agarwal and Shah forecast a revenue, EBITDA, and PAT CAGR of 40.1%, 68.6%, and 92.3% respectively for FY25-27, excluding Ind AS 116 adjustments.

5. Va Tech Wabag:

ICICI Securities maintains its ‘Buy’ rating on Va Tech Wabag with a target price of Rs 1,541, suggesting an upside of 8.2%. Analysts Mohit Kumar, Abhijeet Singh and Nidhi Shah highlight that this non-electrical utilities company recently secured a contract from the Middle East for a 300 million litre per day (MLD) desalination plant. 

This greenfield project, located on the west coast of Saudi Arabia near Yanbu al-Bahr, is set to be completed in 30 months and is valued at Rs 2700 crore, exceeding FY24 engineering, procurement, and construction (EPC) revenues of Rs 2300 crore.

Analysts say that with this order, Wabag’s EPC order book is expected to rise to Rs 7800 crore, improving the book-to-bill ratio to 3.4 times. The operation and maintenance order book stands at Rs 4500 crore. Revenue growth estimates for FY26 have been increased to 20% from earlier projection of 15%. Wabag also has a strong pipeline in the Middle East, having bid for projects worth $100 crore and pre-qualified for a 1000 MLD desalination project.

Kumar, Singh, and Shah expect revenue and earnings CAGR of 15% and 20%, respectively, along with a 300 basis point expansion in return on equity from FY25 to FY26, driven by order book expansion, improved execution, and enhanced margins.

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
11 Sep 2024
Chart of the Week: Crude oil prices at 52-week low boosts prospects for India
By Satyam Kumar

Crude oil prices fell below $70, marking a new 52-week low on September 10 due to oversupply concerns and a weak demand outlook. A week ago, OPEC+ announced it would postpone its planned oil supply increase until the start of 2025.

OPEC, or the Organization of the Petroleum Exporting Countries, was established in 1960 by Iraq, Iran, Kuwait, Saudi Arabia, and Venezuela. The organization has since grown to include 13 member nations. OPEC operates like a cartel, regularly meeting to set oil production targets and coordinate output to manage global oil prices.

In 2016, in response to falling oil prices driven by a surge in United States crude production—also known as shale oil—OPEC signed an agreement with 10 other oil-producing countries, forming OPEC+. Among these countries was Russia, the world’s third-largest oil producer accounting for more than 10% of global production.

This week’s Chart of the Week looks at the reasons behind falling crude oil prices and how these trends may affect India and its equity markets.

Weak demand in the US & China and an increasing supply of US crude led to decline in crude prices

US increases crude production to all-time high levels, while OPEC+ cuts

Oil posted its biggest weekly drop in 11 months as a weak US jobs report added to concerns about tepid demand in the world’s largest consumer of crude. Oil prices have trended lower since early July, with weakness in the economies of China and the US — the top two oil consumers — creating fears about demand.

According to U.S. Energy, the production of crude oil in the United States, also known as shale oil has steadily risen in recent years to all-time high levels, adding supply pressure and messing up OPEC’s calculations as oil demand weakens. 

Falling crude oil prices a boost for the Indian economy

India imports more than 80% of its crude oil needs, so falling oil prices will significantly reduce the country's import bill. This will help narrow the trade deficit and boost foreign exchange reserves. 

High oil prices typically lead to a stronger US dollar against other currencies, which puts downward pressure on the Indian rupee. This is because high oil prices drive up demand for dollars as it is the preferred currency used in oil trade across the globe–so much so that it is referred to as the petrodollar trade. So falling crude oil prices can alleviate the pressure on the rupee.

According to India Today, the government is considering lowering oil prices to reduce inflation by bringing down energy costs. High retail prices for petrol and diesel tend to drive up domestic commodity prices, as increased oil costs raise production and transportation expenses across various sectors, squeezing profit margins. As the world's fourth-largest energy consumer, behind China, the US, and the European Union, India is especially sensitive to shifts in global oil prices.

Indian oil marketing companies & airlines would directly benefit from lower crude oil prices

Oil marketing and distribution companies such as Indian Oil Corporation, Bharat Petroleum Corporation, and Hindustan Petroleum Corporation stand to benefit from falling crude oil prices, as it is a key input material. Despite crude price fluctuations, retail fuel prices have remained near Rs 100 for the past few years. As a result, declining crude prices, coupled with stable retail prices, will significantly enhance their profit margins.

These companies saw their net profit surge nearly tenfold during the Russia-Ukraine war. This was due to US sanctions on Russian crude, which left Russia with limited buyers and forced it to sell at discounted rates. Consequently, India's crude imports from Russia skyrocketed, increasing from $2.3 billion in 2021 to $25.5 billion in 2022, and nearly doubling again to $48.6 billion in 2023. 

Although Russia still supplies 40% of India’s crude oil, the price advantage has lessened due to higher insurance and freight costs.

Similarly, for airlines like InterGlobe Aviation (IndiGo), fuel expenses make up more than 30% of its total expenses. Lower crude oil prices can help reduce operating costs and boost profit margins.

Paint, tyre and lubricant manufacturers that use crude oil derivatives as raw materials would witness higher gross profit

Paint manufacturers such as Asian Paints, Berger Paints (India), and Kansai Nerolac Paints will benefit from lower crude oil prices, as more than 40% of their revenue is spent on raw materials, many of which are crude oil derivatives. Gulf Oil Lubricants India will also see a reduction in operating costs in the coming quarters if crude oil prices remain low.

On the other hand, rubber prices have risen by 24% over the past year, squeezing profit margins for tyre manufacturers. Companies like Balkrishna Industries, MRF, Apollo Tyres, and Ceat have taken price hikes over the past year to offset rising costs. However, as the prices of crude oil derivatives decline with falling oil prices, rubber costs are expected to decrease, which will, in turn, benefit these tyre manufacturers.

The recent decline in crude oil prices offers significant advantages to various sectors in India. Overall, crude oil prices at or below $70, is good for the Indian economy. However, global economic dynamics, particularly demand trends in the US and China, will be critical in shaping the long-term outlook for crude prices and their impact on India.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Riding High:

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

Downers:

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

Movers and Shakers

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

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

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

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

BSE 500: highs, lows and moving averages

41 stocks hit their 52 week highs,

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Riding High:

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

Downers:

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

Volume Shockers

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

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

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

BSE 500: highs, lows and moving averages

34 stocks overperformed with 52 week highs,

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Riding High:

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

Downers:

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

Crowd Puller Stocks

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

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

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

Anand Rathi Wealth Ltd. (3,840, -2.0%) was trading at 4.2 times of weekly average. Dabur India Ltd. (662.35, 2.8%) and Narayana Hrudayalaya Ltd. (1,377, 2.3%) were trading with volumes 3.2 and 3.1 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

13 stocks overperformed with 52 week highs, while 1 stock hit their 52 week lows.

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

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

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

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

1. Medplus Health Services:

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

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

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

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

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

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

2. AU Small Finance Bank:

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

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

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

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

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

3. Radico Khaitan:

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

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

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

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

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

4. Hindustan Petroleum Corporation: 

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

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

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

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

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

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

5. Gujarat Gas:

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Riding High:

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

Downers:

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

Volume Rockets

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

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

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

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

BSE 500: highs, lows and moving averages

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

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

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

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