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The Baseline
08 Aug 2024
Which stocks did superstar investors buy in Q1FY25?
By Ruchir Sankhla

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

(You can now also invest in shadow superstar baskets available on Starfolio, which are updated and rebalanced as per Trendlyne's superstar portfolios).

In Q1, superstar investors made fewer additions and more stake sales, with some only making small increases in stakes and no new buys during the quarter. The chart below shows the changes in superstar investors' current portfolio net worth. Note that net worth reflects both changes in current holdings as well as new buys and sells. 

Some superstars see a fall in their net worth in Q1FY25

The public portfolio of each superstar investor indicates their investing style and preferred approaches. The following chart gives a breakdown of the dominant sectors in each investor’s portfolio. 

Sectors preferred by superstars

Sector preferences vary among superstar investors – RARE Enterprises leans towards the textiles apparels & accessories sector, while Ashish Kacholia and Sunil Singhania favor the general industrials sector. Vijay Kedia’s preferred industry is automobiles & auto components. Dolly Khanna prefers the oil & gas industry, and Porinju Veliyath favors software & services.

RARE Enterprises’ only buy is a minor stake in a healthcare company

Rakesh Jhunjhunwala’s portfolio, currently managed by Rekha Jhunjhunwala and RARE Enterprises, fell by around 10.9% to Rs 46,092.1 crore by the end of Q1FY25. During the first quarter, no new additions were made. RARE Enterprises made just a minor stake increase in healthcare facilities firm Fortis Healthcare by 0.1%. The portfolio now holds a 4.2% stake. Over the past year, the company’s share price has increased by 43.7%. 

Ashish Kacholia adds a new listed company to his portfolio

Ashish Kacholia’s net worth declined by 6.9% to Rs 2,718.5 crore after Q1FY25. During the quarter, the marquee investor added recently listed special consumer servicesAwfis Space Solutions to his portfolio, by buying a 4.8% stake. 

Awfis Space Solutions debuted on the stock exchanges on May 30, 2024. The company’s share price has increased by 64.3% from its listing price. 

During Q1, the ace investor also bought a 0.2% stake in Dhabriya Polywood. He now holds a 6.67% stake in the plastic products company. Kacholia added it to his portfolio in Q2FY24 by purchasing a  6.4% stake. The company’s share price has grown by 70.5% over the past year, outperforming its industry by 27.4 percentage points. 

During Q1, Kacholia also bought a minor stake in Brand Concepts. He now holds 1.6% in the specialty retail company. The company’s share price rose by 65.9% in the past year. 


Ashish Kacholia adds Awfis Space Solutions to his Portfolio

Sunil Singhania’s Abakkus Fund makes no new buys in Q1

Sunil Singhania’s Abakkus Fund saw its net worth fall by 4.2% to Rs 2,711.3 crore after Q1FY25. The fund didn’t make any buys during the quarter. The fund’s activity in  Q4FY24 was also limited, adding just minor stakes to current holdings. Abakkus Fund increased its holdings in household appliances manufacturer, Hindware Home Innovation, to 4.5%.  It also added minor stakes in Shriram Pistons & Rings and IIFL Securities. 

Vijay Kedia increases stake in an airline company

Vijay Kedia’s net worth increased by 33.6% to Rs 1,659.9 crore after Q1FY25. During the April-June quarter, the ace investor did not add any new stocks to the portfolio and increased his stake in just one company – airlines stock Global Vectra Helicorp, by buying a 1.9% stake. Kedia now owns 4.9% of the company. Over the past year, the company’s share price has increased by 260.4%.

Vijay Kedia buys a 1.9% stake in Global Vectra Helicorp

Dolly Khanna adds five new companies to her portfolio in Q1

Dolly Khanna’s net worth increased by 25.5% after Q1FY25 to Rs 615.7 crore, she publicly holds 21 companies. During Q1, the investor continued to expand her portfolio by adding five new companies and raising stakes in four others. Among her new investments is a 1.6% stake in capital market company Emkay Global Financial Services and a 1% stake in Tinna Rubber and Infrastructure, a specialty chemicals company. She also bought a 1.1% stake each in textile stock Super Sales India, non-ferrous metals company Nile and bank stock Ujjivan Small Finance Bank. 

Dolly Khanna adds five stocks to her portfolio

During the first quarter, Khanna bought a 0.53% stake inexploration & production companySelan Exploration Technology, taking her holding to 1.56%. She bought a 0.4% stake in breweries & distilleries company Som Distilleries & Breweries and now holds a 1.5% stake. The ace investor added minor stakes in the sugar stockZuari Industries and the housing finance company Repco Home Finance. She now holds 1.9% and 1.2% stakes respectively, in these companies. 

Porinju Veliyath buys a small stake in an IT company 

Porinju Veliyath’s net worth increased by 37.3% to Rs 262.3 crore after Q1FY25. During the first quarter, he increased investments in two companies. The investor bought a 0.4% stake in Aurum Proptech and now holds 4.9% in the IT consulting & software company. In the last one year this company has outperformed its industry by 21%.

Porinju adds minor stakes in Aurum Proptech and TAAL Enterprises

The ace investor also increased his stake in airlines industry company TAAL Enterprise by adding 0.2%, taking his holding to 1.3%. The company has a good durability score of 65. 




 
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The Baseline
07 Aug 2024
By Satyam Kumar

There are two popular ways to generate returns from stocks: 1) when your capital appreciates with share price growth, and 2) dividends. Investing in dividend-paying stocks gives you a share of a company’s profits through regular cash payments. Such high-dividend stocks serve as reliable sources of income. 

The dividend yield, expressed as a percentage, is the annual dividend payment relative to the stock’s current price. The significance of the dividend yield for a company lies in its ability to attract and retain investors for longer. A higher dividend yield boosts the stock’s appeal, especially for investors looking for a steady income.

It's important to note that the dividend yield isn't a static figure; it changes as the stock price fluctuates. A falling stock price can inflate the dividend yield, a factor investors need to consider when analysing this metric. 

In this edition of Chart of the Week, we will look into sectors and companies with the highest 1-year dividend yield over the past year. The full high dividend screener is here.

Aster DM Healthcare gives a special dividend after sale of its Gulf business

Healthcare facilities company Aster DM Healthcare announced a special dividend of Rs 118 per share from the proceeds after the sale of its Gulf business. Its share price rallied after the company completed the separation of its India and GCC businesses on April 3. The management said the Indian healthcare market looks promising and, after segregation, the company would focus on increasing its footprint in India. 

Through both greenfield and brownfield opportunities, the company aims to take its total bed count in India to more than 6,600 in the next three years. The expansion plan will encompass the upcoming Aster Capital in Trivandrum, and Aster MIMS Kasargod projects, and adding bed capacity to existing hospitals. The healthcare company will also be looking at potential markets such as Maharashtra and Uttar Pradesh – while UP is a demographically younger market compared to South India, it is highly underserved when it comes to health facilities. The capital allocation for this expansion is in the range of Rs 1,000 crore.

Indian Oil & its subsidiary Chennai Petroleum Corp. deliver the highest dividend yield among oil & gas companies

The oil & gas sector had a dividend yield of 1.7% in the past year. Companies in the lead are Indian Oil Corporation, Chennai Petroleum Corporation and Bharat Petroleum with dividend yields of 7.2%, 6.1% and 3.8% respectively. It is important to note here that central public sector enterprises must pay a minimum annual dividend of 30% of profit after tax or 5% of net worth, whichever is higher as per guidelines given in 2020.

In FY24, Indian Oil gave a 4X higher dividend of Rs 12 on a YoY basis, thanks to the cheap Russian crude that boosted gross refining margins over the past year. However, Trendlyne’s Forecaster estimates that the dividend per share will fall to Rs 6.8 in FY25. This is because discounts have almost halved to $3-6/barrel from $8-10/barrel in FY24, mainly due to higher freight and insurance costs because of Ukrainian drone attacks. This is evident in the net profit of oil & gas companies in Q1FY25. Indian Oil saw its net profit decline 75.6% YoY, while Chennai Petroleum’s net profit declined by 35.8% on a YoY basis.

Bharat Petroleum also saw its net profit decline by 73.3% on a YoY basis in Q1FY25. Trendlyne’s Forecaster estimates the company will lower its dividend payout by 35.7% in FY25 compared to that in FY24. However, due to inflationary headwinds and a slowing global economy which might even lead to a recession in the US, crude oil prices are trading below the $80 level. This can be a major tailwind for refining margins and profitability, leading to potentially higher payouts/dividends.

Vedanta’s dividend yield takes a hit, as it aims to deleverage balance sheet

The metals & mining sector on the other hand had a dividend yield of 2.1%. Companies with the highest dividend payout in this sector are Vedanta, Coal India and NMDC with yields of 6.3%, 4.9% and 3.9% respectively. All three companies saw their share price nearly double over the past year.

Contrary to the estimate beating dividend per share payout of Rs 101.5 in FY23, Vedanta missed the FY24 dividend payout estimates by 17.1%. This comes as the debt-heavy mining company works to deleverage its balance sheet via strategic demerger and asset sale. In Q4FY24, the company reduced its debt by 10% on a QoQ basis and improved its net debt to EBITDA ratio to 1.5X from 1.7X.

Meanwhile, the banking & financial services firm had an overall dividend yield of 1% in FY24. The top dividend-paying stocks in this sector are ICICI Securities, UTI Asset Management Company and Ujjivan Small Finance Bank, offering yields of 5.2%, 4.8% and 3.5% respectively.

Among the stocks that made it to the list, only Ujjivan Small Finance Bank’s share price fell over the past year.

It’s worth noting that there are many reasons for companies to pay out dividends. While some aim to distribute profits back to shareholders, others might do so due to a lack of significant expansion plans. Companies that pay dividends are typically considered more stable and financially sound and, historically, dividend stocks have proven to be a safe bet during market downturns.

 
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The Baseline
07 Aug 2024
Five stocks to buy from analysts this week - August 7 2024
By Divyansh Pokharna

1. Tata Consumer Products:

Motilal Oswal reiterates a ‘Buy’ rating on this tea & coffee company with a target price of Rs 1,380, indicating a potential upside of 15%. In Q1FY25, Tata Consumer Products' revenue grew 15.6% YoY to Rs 4,391 crore. EBITDA margins improved 80 bps YoY led by strong performance in the international beverage segment and higher coffee prices within the unbranded business.

Analysts Sumant Kumar and Meet Jain highlight the acquisitions of Capital Foods and Organic India, which contributed nearly 5% to the company’s revenue. They are optimistic about the company's plans to diversify its product portfolio through the ready-to-drink segment, and its entry into the branded dry fruits market. Additionally, the company plans to digitize its supply chain to improve operational efficiency and cost management.

Kumar and Jain are positive about the management's focus on strengthening the core business and expanding its distribution network. They project a revenue and PAT CAGR of 12% and 20% respectively, over FY25-26.

2. Granules India:

ICICI Direct maintains a ‘Buy’ rating on this pharmaceuticals company with an upgraded target price of Rs 765. This indicates an upside of 16.5%. In Q1FY25, Granules India’s revenue grew 20% YoY to Rs 1,176 crore driven by a 45% increase in US sales, which accounts for 74% of total sales.

The company saw a 90% YoY growth in EBITDA, driven by enhanced margins and a favorable product mix. Analysts Siddhant Khandekar and Shubh Mehta are upbeat about the company's plans to produce essential raw materials in-house to secure its supply chain.They are positive about Granules expanding its product portfolio, particularly in formulations, with a targeted launch of 7-8 products annually in the US. The firm’s Genome Valley plant began operations in March, which increased its production capacity to 2 billion units. 

ICICI Direct projects a revenue CAGR of 12.9% and a net profit CAGR of 37.9% over FY25-26, driven by the company’s emphasis on increasing sales of its formulation products, especially in the US and Europe.

3. NLC India:

Axis Direct initiates a ‘Buy’ rating on this electric utilities company with a target price of Rs 340, indicating a potential upside of 30.2%. In FY24, the company’s net profit rose 32.8% YoY to Rs 1,854,1 crore, missing Forecaster estimates by 7.4%. However, operating revenue fell 19.6% YoY to Rs 12,999 crore.

Analysts Aditya Welekar and Darsh Solanki notes the company’s plans to increase its mining capacity from 50 MTPA to 102 MTPA, thermal power capacity from 4,640 MW to 10,465 MW, and renewable energy capacity from 1,431 MW to 8,059 MW by 2030. These capacity expansions will require a capital expenditure of Rs 1 lakh crore. These efforts aim to diversify cash flows and mitigate risks during the thermal power expansion.

Welekar and Solanki value the conventional thermal business at 1.8 times the FY33 equity projections. They value the regulated mining business at 1.9 times FY26 equity, the renewable energy business at 9.0 times EV/EBITDA on FY26 EBITDA, and the merchant coal business at 7.0 times EV/EBITDA on FY26 EBITDA.

4. Indraprastha Gas:

Sharekhan has a ‘Buy’ rating on this non-electrical utilities company with a target price of Rs 648, indicating a potential upside of 19.4%. In Q1FY25, the company’s net profit fell 7.8% YoY to Rs 481.2 crore but beat Trendlyne’s Forecaster estimates by 11.5%. Its operating revenue rose 3.3% YoY to Rs 3,520.6 crore driven by a 7.4% increase in the sales volume of piped natural gas (PNG), reaching 198.4 million standard cubic meters (scm) compared to 184.7 million scm in Q1FY24.

Analysts note the company’s capex for FY25 is projected to be Rs 1,700-1,800 crore, with around Rs 300 crores spent in Q1FY25. They also highlight the company’s plans to establish 10 new compressed biogas (CBG) plants in FY25, with an estimated project cost of Rs 300-350 crore, shared equally in a joint venture. The company plans to expand its network by adding 90 new CNG stations.

The analysts expect increased consumption from ongoing infrastructure development and the introduction of CNG-compatible bikes to enhance consumption levels. The growth in LNG sales, which benefits from higher margins, also contributes to this optimistic forecast.

5. ICICI Lombard General Insurance:

Geojit BNP Paribas maintains a ‘Buy’ rating on this general insurance company with a target price of Rs 2,331, indicating an upside of 20.5%. In Q1FY25, the company’s gross direct premium income (GDPI) rose 20.4% YoY to Rs 7,688 crore, beating the industry’s 13.3% YoY growth. It appears in a screener of stocks outperforming their industry during the quarter. 

The health segment saw a growth of 28.5% YoY, helped by the launch of a new health insurance solution ‘Elevate’. The analyst remains optimistic about the boost in the retail health business, driven by shifting consumer preferences and improved servicing capabilities. ICICI Lombard has expanded its product offerings with new long-term insurance products for the private car and 2-wheeler segment.

Geojit projects ICICI Lombard’s premium earnings to grow at 16.4% CAGR and net profit CAGR of 25.1% over FY25-26, helped by its strong product mix and demand of its product by customers.


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

(You can find all analyst picks here)

 
Trendlyne Marketwatch
Trendlyne Marketwatch
07 Aug 2024
Market closes higher, TVS Motor hits all-time high after revenue rises 14.9% YoY in Q1FY25
By Trendlyne Analysis

Nifty 50 closed at 24,268.50 (276.0, 1.2%), BSE Sensex closed at 79,349.06 (756.0, 1.0%) while the broader Nifty 500 closed at 22817.05 (373.8, 1.7%). Market breadth is surging up. Of the 2,217 stocks traded today, 1,817 were in the positive territory and 373 were negative.

Indian indices maintained the gains from the morning session and closed in the green. The Indian volatility index, Nifty VIX, fell 13.5% and closed at 16.2 points. TVS Motor rose sharply to an all-time high of Rs 2,618 as its revenue increased 14.9% YoY to Rs 10,406.9 crore for Q1FY25 and net profit rose 6.1% YoY to Rs 460 crore during the quarter.

Nifty Smallcap 100 and Nifty Midcap 100 closed in the green. Nifty CPSE and Nifty PSE were among the top index gainers today. According to Trendlyne’s Sector dashboard, Telecommunications Equipment emerged as the best-performing sector of the day, with a rise of 5.1%.

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

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

  • Venky's (India) surges to its 20% upper circuit as its Q1FY25 net profit grows 3.9x YoY to Rs 75.2 crore, helped by reduced raw materials and finance costs. However, revenue declines by 17% YoY to Rs 818.5 crore due to a decrease in the oilseed segment. It appears in a screener of stocks with price above short, medium and long term moving averages.

  • Pidilite Industries rises sharply as its revenue grows 3.7% YoY to Rs 3,395.4 crore in Q1FY25, driven by strong performance in consumer & bazaar and B2B segment. Net profit rises 20.6% YoY to Rs 571.3 crore during the quarter. It appears in a screener of stocks with book value per share improving in last two years.

  • BASF rises sharply to its all-time high of Rs 6,933.1 as its Q1FY25 net profit rises 95.7% YoY to Rs 220.6 crore due to lower inventory and finance costs. Revenue grows 17.5% YoY to Rs 3,966.9 crore during the quarter. The company appears in a screener of stocks with high momentum scores.

  • Foreign Portfolio Investors (FPIs) invest Rs 32,365 crore ($3.87 billion) in Indian equities in July, marking the second-largest monthly inflow of 2024. The highest inflows this year occurred in March at Rs 35,098 crore, while June saw inflows of Rs 26,565 crore. Vipul Bhowar, Director at Waterfield Advisors, attributes the rebound in FPI inflows to India’s stable political environment, ongoing economic reforms, and appealing market valuations.

  • ICICI Direct keeps its 'Buy' call on Coal India with a higher target price of Rs 650 per share. This indicates a potential upside of 22.8%. The brokerage remains positive on the stock due to healthy volume growth, and diversification efforts in new sunrise spaces. It expects the company's revenue to grow at a CAGR of 7% over FY25-26.

  • PI Industries rises sharply as its revenue grows 8.3% YoY to Rs 2,068.9 crore in Q1FY25, driven by its agrochemicals segment. Net profit rises 17.2% YoY to Rs 448.8 crore during the quarter. It appears in a screener of stocks where mutual funds increased their shareholding in the last quarter.

  • Gulf Oil Lubricants India rises sharply as its Q1FY25 net profit rises 26.5% YoY to Rs 86 crore due to lower inventory costs. Revenue grows 10.1% YoY to Rs 894 crore during the quarter. The company appears in a screener of stocks with improving cash flow from operation over the last two years.

  • Dilip Asbe, MD and CEO of the National Payments Corporation of India (NPCI), reports that credit card transactions via the Unified Payments Interface (UPI) have reached Rs 10,000 crore. Of this amount, around Rs 100 to Rs 200 crore are attributable to credit line transactions on UPI. He clarifies that these credit lines are pre-approved, short-term, small-ticket loans. Although the adoption of credit lines has been gradual, NPCI is not concerned about the scale of their uptake.

  • Cummins India rises sharply as its net profit grows by 30.8% YoY to Rs 462.6 crore in Q1FY25 owing to reduced inventory and employee benefits expenses. Revenue increases by 4.9% YoY to Rs 2,419.3 crore, helped by an improvement in the engines and lubricants segments. The company's Managing Director, Ashwath Ram, resigns effective August 31 to take on a full-time global role with Cummins USA.

  • TVS Motor rises sharply to an all-time high of Rs 2,618 as its revenue rises 14.9% YoY to Rs 10,406.9 crore for Q1FY25, driven by improvements in its vehicles and financial services segments. Net profit for the quarter rises 6.1% YoY to Rs 460 crore. The stock appears in a screener of stocks outperforming their industry price change during the quarter.

  • AIA Engineering rises sharply as its board of directors approves the buyback of 10 lakh shares at Rs 5,000 per share, totaling Rs 500 crore. The record date is set for August 20.

  • NMDC cuts the price of iron ore lumps by Rs 600, bringing it down to Rs 5,350 per tonne. Similarly, the price of iron ore fines has been reduced by Rs 500, now standing at Rs 4,610 per tonne, down from Rs 5,110 per tonne.

  • Shyam Metalics and Energy's stainless steel sales rise 37% YoY to 5,699 tonnes in July. However, aluminium foil sales decline marginally on a YoY basis to 1,571 tonnes. The company's speciality alloys sales grows 12% YoY, carbon sales decrease by 4% YoY, and sponge iron sales decrease by 4% YoY while that of pellets increase by 2% YoY.

  • Welspun Corp rises after its associate, East Pipes Integrated Company, secures contracts worth Rs 525 crore for manufacturing, supplying and coating steel pipes over a 24-month period.

  • Bosch's revenue increases 3.8% YoY to Rs 4,316.8 crore in Q1FY25, driven by improvements in the automotive and consumer goods segments. Net profit rises by 13.9% YoY to Rs 466 crore during the quarter, helped by inventory destocking. It appears in a screener of stocks with quarterly net profit growth and increasing profit margins.

  • Reports suggest that the Indian government is reassessing its plans for an offer for sale (OFS) of Hindustan Zinc, which is expected to be done in FY25. The government is considering diluting its stake in the company in tranches.

  • Gland Pharma falls sharply as its net profit declines 25.9% YoY to Rs 143.8 crore in Q1FY25 due to higher inventory, employee benefits, and finance costs. However, revenue increases 16.6% YoY to Rs 1,453.1 crore on account of growth in the USA, Europe, Canada, Australia and New Zealand. It shows up in a screener of stocks with negative profit growth and promoters decreasing shareholding.

  • GR Infraprojects emerges as the lowest bidder for establishing a transmission scheme on a build, own, operate, and transfer basis for integration of Tumkur?II REZ in the state of Karnataka.

  • Gujarat Gas' Q1FY25 net profit rises 53.1% YoY to Rs 330.7 crore due to reduction in spot gas prices and increase in volumes. Revenue grows 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.

  • Nuvama initiates a 'Buy' rating on JTL Industries with a target price of Rs 303. The brokerage highlights the firm's volume growth, margin expansion, and increased capacity. It projects a strong profit CAGR of 38% for FY25–27, driven by capacity expansion and a better product mix. However, Nuvama also warns of potential risks, including a possible slowdown in the economy or the steel sector and fluctuations in steel prices.

  • Lupin surges to a new 52-week high of Rs 2,030 per share as its net profit rises 77.2% YoY to Rs 801.3 crore in Q1FY25, helped by reduced inventory and finance costs. Revenue increases 17.2% YoY to Rs 5,668.1 crore, driven by a rise in the India, North America, Europe, the Middle East and Africa (EMEA) and active pharmaceutical ingredient (API) businesses. It appears in a screener of stocks with improving return on equity (RoE) over the past two years.

  • Bata India's Q1FY25 net profit rises 62.8% YoY to Rs 174.1 crore. However, revenue falls 1.4% YoY to Rs 944.6 crore due to the elections and extreme heat wave during the last quarter. The company appears in a screener of stocks with increasing profits every quarter for the past 3 quarters.

  • Suzlon Energy rises sharpy as its board of directors approves the acquisition of a 76% stake in Renom Energy Services for a total consideration of Rs 660 crore.

  • Tata Power rises as its Q1FY25 revenue grows by 13.3% YoY to Rs 17,541 crore, driven by an improvement in the generation, renewables and transmission & distribution (T&D) segments. However, net profit remains flat at Rs 971.9 crore due to higher power, fuel, transmission, raw materials and employee benefits expenses. It features in a screener of stocks with improvement in cash flow over the past two years.

  • Markets rise on early trading, Nifty 50 was trading at 24283.55 (291, 1.2%) , BSE Sensex was trading at 79464.49 (871.4, 1.1%) while the broader Nifty 500 was trading at 22728.55 (285.3, 1.3%)

  • Market breadth is overwhelmingly positive. Of the 1895 stocks traded today, 1715 were on the uptrend, and 159 went down.

Riding High:

Largecap and midcap gainers today include Oil India Ltd. (616.35, 7.9%), Oil And Natural Gas Corporation Ltd. (327.90, 7.1%) and Cummins India Ltd. (3,766.55, 6.9%).

Downers:

Largecap and midcap losers today include Gland Pharma Ltd. (2,032, -3.6%), Shree Cements Ltd. (25,389.60, -2.7%) and IndusInd Bank Ltd. (1,343.35, -2.7%).

Volume Shockers

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

Top high volume gainers on BSE included BASF India Ltd. (6,933.15, 20%), Cochin Shipyard Ltd. (2,378.25, 3.8%) and VIP Industries Ltd. (448.10, 0.9%).

Top high volume losers on BSE were EIH Ltd. (374.95, -5.5%), Gland Pharma Ltd. (2,032, -3.6%) and Shree Cements Ltd. (25,389.60, -2.7%).

Sapphire Foods India Ltd. (1,648.65, -0.5%) was trading at 8.8 times of weekly average. AIA Engineering Ltd. (4,439.90, -0.5%) was trading with volume 3.3 times weekly average on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

27 stocks made 52 week highs, while 2 stocks were underachievers and hit their 52 week lows.

Stocks touching their year highs included - Ajanta Pharma Ltd. (2,938.60, 5.4%), Akzo Nobel India Ltd. (3,225.15, 3.9%) and Atul Ltd. (8,021.20, 3.3%).

Stocks making new 52 weeks lows included - IndusInd Bank Ltd. (1,343.35, -2.7%) and Equitas Small Finance Bank Ltd. (79.20, 0.0%).

14 stocks climbed above their 200 day SMA including Alok Industries Ltd. (26.23, 4.6%) and Aster DM Healthcare Ltd. (395.45, 4.3%). 7 stocks slipped below their 200 SMA including EIH Ltd. (374.95, -5.5%) and Bata India Ltd. (1,463.80, -3.4%).

 
Trendlyne Marketwatch
Trendlyne Marketwatch
06 Aug 2024
Market closes lower, Vedanta's net profit grows 54% YoY to Rs 5,095 crore in Q1FY25
By Trendlyne Analysis

Nifty 50 closed at 23,992.55 (-63.1, -0.3%), BSE Sensex closed at 78,593.07 (-166.3, -0.2%) while the broader Nifty 500 closed at 22,443.30 (-99.2, -0.4%). Market breadth is in the red. Of the 2,232 stocks traded today, 820 were on the uptick, and 1,382 were down.

Indian indices erased their gains from the morning session and close in the red. The volatility index, Nifty VIX, plunged 8% and closed at around 18.7 points. Vedanta closed marginally higher as its revenue increased by 5.5% YoY to Rs 35,764 crore in Q1FY25, while net profit rose 54% YoY to Rs 5,095 crore.

Nifty Midcap 100 and Nifty Smallcap 100 closed lower following the benchmark index. BSE Realty closed in the green, while Nifty PSU Bank closed in the red. According to Trendlyne’s sector dashboard, Forest Materials emerged as the best-performing sector of the day, with a rise of 2.4%.

European indices traded lower amid weak global cues. Major Asian indices closed mixed. US index futures traded mixed, indicating a cautious start to the trading session. Alphabet lost its antitrust case on Monday as a federal judge ruled that the company had violated antitrust laws by engaging in monopolistic tactics in its search business.

  • Money flow index (MFI) indicates that stocks like Ajanta Pharma, PCBL, Jubilant Pharmova, and Granules India are in the overbought zone.

  • NCC's Q1FY25 net profit grows 20.9% YoY to Rs 209.9 crore. Revenue rises 26.2% YoY to Rs 5,528 crore during the quarter, driven by high sales in the construction segment. The company appears in a screener of stocks with improving return on equity (ROE) over the last two years.

  • Vedanta's revenue increases 5.5% YoY to Rs 35,764 crore in Q1FY25, driven by improvements in zinc, lead & silver, and aluminium segments. Net profit rises 54% YoY to Rs 5,095 crore during the quarter, helped by inventory destocking. It appears in a screener of stocks where mutual funds increased their shareholding in the last quarter.

  • Motherson Sumi Wiring India's revenue increases 16.7% YoY to Rs 2,184.8 crore in Q1FY25. Net profit rises 20.9% YoY to Rs 148.9 crore during the quarter, helped by inventory destocking. It shows up in a screener of stocks with growth in quarterly net profit with increasing profit margin.

  • Unicommerce eSolutions' Rs 276.6 crore IPO gets bids for 1.7X the available 4.1 crore shares on offer on the first of bidding. The retail investor quota gets bids for 7.6X the available 25.6 lakh shares on offer.

  • Consumer goods manufacturers like Marico and Britannia Industries highlight improved rural demand trends in Q1FY25, with companies reporting increased sales of their products in recent months. They attribute this positive change to better monsoon conditions, moderate inflation, and improved rural employment.

  • Brainbees Solutions' Rs 4,193.7 crore IPO gets bids for 0.1X the available 5 crore shares on offer on the first of bidding. The retail investor quota gets bids for 0.4X the available 90.1 lakh shares on offer.

  • Ola Electric Mobility's Rs 6,145.6 crore IPO gets bids for 2.1X the available 46.5 crore shares on offer on the third of bidding. The retail investor quota gets bids for 3.6X the available 8.5 crore shares on offer.

  • Axis Direct retains its 'Buy' call on State Bank of India with a higher target price of Rs 1,030 per share. This indicates a potential upside of 26.8%. The brokerage believes the company's net interest income (NII) will continue to grow, driven by a healthy credit-deposit (CD) ratio and improved asset quality. It expects the bank's NII to grow at a CAGR of 8.9% over FY25-27.

  • Infosys reportedly seeks an additional ten days to respond to the pre-show cause notice issued by the Directorate General of GST Intelligence (DGGI). The company clarified that the tax demand for FY17-2018 stands at Rs 3,898 crore. Infosys had received a tax demand of over Rs 32,000 crore related to services received from its overseas branches between July 2017 and FY21-22.

  • Bharti Hexacom's Q1FY25 net profit surges by 101.9% YoY to Rs 511.2 crore, helped by a 79.4% YoY decline in current tax. Revenue grows by 10.7% YoY to Rs 19,50.5 crore, owing to improvements in mobile services and home & office services segments. It shows up in a screener of stocks with expensive valuations according to the Trendlyne valuation score.

  • BLS International surges almost 10% as its net profit grows by 65.7% YoY to Rs 114.2 crore in Q1FY25. Revenue increases 30.6% YoY to Rs 510.2 crore, attributed to a rise in the visa & consular services and digital services segments. The company's board approves fundraising of Rs 2,000 crore through public or private offerings, qualified institutional placements (QIP), or other modes.

  • Housing and Urban Development Corp (HUDCO) surges as it signs a non-binding memorandum of understanding (MoU) with Rites to collaborate on a broad spectrum of consultancy and fee-based projects, covering all stages from concept to commissioning.

  • Rajesh Sharma, Managing Director of Capri Global Capital, projects net interest income (NII) growth of 30-35% for the year and expects net interest margins (NIMs) to improve going ahead. He guides an asset under management (AUM) of Rs 20,000-21,000 crore for FY25. Sharma highlights the firm's target of around $40-50 crore of insurance distribution this year.

  • V-Mart Retail rises sharply as its revenue grows by 15.9% YoY to Rs 786.1 crore in Q1FY25, driven by improvement in the retail trade segment. It reports a net profit of Rs 12.1 crore in Q1FY25 compared to a net loss of Rs 21.9 crore in Q1FY24. It shows up in a screener of stocks outperforming their industry price change during the quarter.

  • Power Mech Projects receives an order worth Rs 110.6 crore from Dangote Petroleum Refinery for the operation and maintenance (O&M) of a 400 MW captive power plant (CPP) and utilities of petroleum oil refinery at Dangote, Nigeria.

  • Oil & Natural Gas Corp's Q1FY25 net profit falls sharply by 32.1% YoY to Rs 9,936.5 crore due to higher raw materials, inventory, survey & exploration, finance costs, and statutory levies. However, revenue grows by 1.9% YoY to Rs 1.7 lakh crore, helped by improvements in the offshore, onshore, and refining & marketing segments. It features in a screener of stocks with declining profits for the past three quarters.

  • JP Morgan maintains its 'Overweight' rating on Bharti Airtel with a target price of Rs 1,500 per share. The brokerage notes that capital expenditures on India wireless and overall have decreased to 19% and 20%, respectively, for Q1FY25. It believes this reduction in capex will boost the firm's free cash flow from its India operations by 30% sequentially and 83% YoY.

  • Akums Drugs and Pharmaceuticals' shares debut on the bourses at a 6.8% premium to the issue price of Rs 679. The Rs 1,856.7 crore IPO has received bids for 63.6 times the total shares on offer.

  • Brigade Enterprises rises sharply as its net profit surges by 117.3% YoY to Rs 83.7 crore in Q1FY25. Revenue grows by 62.4% YoY to Rs 1,113.4 crore, driven by an increase in the real estate, hospitality, and leasing segments. The company's subsidiary, Brigade Tetrarch, enters an agreement to develop 1.4 million square feet of leasable office space. The space will generate an annual income of Rs 100 with an investment of Rs 750 crore.

  • Patel Engineering rises as it bags a Rs 317.6 crore contract, along with its JV partner for an irrigation project from the Government of Maharashtra. The company's share in this contract is worth Rs 111.2 crore.

  • Jefferies maintains its ‘Buy’ call on Marico with an upgraded target price of Rs 780. The brokerage highlights the improving growth trends, positive outlook, and improved volume growth. Jefferies adds that the growth outlook remains positive, however, the situation in Bangladesh needs to be monitored.

  • Aster DM Healthcare's CEO, Nitish Shetty, tenders his resignation, effective August 5, to pursue entrepreneurial opportunities.

  • Deepak Nitrite surges as its Q1FY25 net profit rises 35.1% YoY to Rs 202.5 crore, driven by lower inventory and material costs. Revenue grows 22.5% YoY to Rs 2,166.8 crore during the quarter due to higher sales from the phenolics segment. The company appears in a screener of stocks where mutual funds increased their shareholding over the past two months.

  • Tata Chemicals' net profit plunges by 74.2% YoY to Rs 135 crore in Q1FY25, caused by higher employee benefits and freight & forwarding expenses. Revenue declines by 10.1% YoY to Rs 3,836 crore due to a decrease in the basic chemistry products and specialty products segments. It shows up in a screener of stocks underperforming their industries in the past quarter.

  • Bharti Airtel's Q1FY25 net profit rises 157.9% YoY to Rs 4,159.9 crore due to lower net exceptional items. Revenue rises 2.8% YoY to Rs 38,506.4 crore during the quarter. The company appears in a screener of stocks with zero promoter pledge.

  • Markets rise on early trading, Nifty 50 was trading at 24,339.65 (284.1, 1.2%), BSE Sensex was trading at 79,705.23 (945.8, 1.2%) while the broader Nifty 500 was trading at 22,867.80 (325.4, 1.4%).

  • Market breadth is ticking up strongly. Of the 1,955 stocks traded today, 1,784 showed gains, and 141 showed losses.

Riding High:

Largecap and midcap gainers today include Patanjali Foods Ltd. (1,761.90, 4.5%), Godrej Properties Ltd. (2,934.10, 3.5%) and Ipca Laboratories Ltd. (1,319.35, 2.8%).

Downers:

Largecap and midcap losers today include Marico Ltd. (628.50, -6.5%), LIC Housing Finance Ltd. (651.85, -5%) and Power Finance Corporation Ltd. (474.05, -4.8%).

Crowd Puller Stocks

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

Top high volume gainers on BSE included KPR Mill Ltd. (945.55, 14.4%), BLS International Services Ltd. (385.10, 10.1%) and Schneider Electric Infrastructure Ltd. (788.65, 5.2%).

Top high volume losers on BSE were Honeywell Automation India Ltd. (51,200, -3.6%), Shree Cements Ltd. (26,101.35, -2.7%) and Ingersoll-Rand (India) Ltd. (4,002.70, -0.9%).

Vardhman Textiles Ltd. (519, 4.0%) was trading at 10.6 times of weekly average. Welspun Living Ltd. (180.09, 3.3%) and Triveni Turbine Ltd. (619.45, 4%) were trading with volumes 6.4 and 5.9 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

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

Stocks touching their year highs included - Ajanta Pharma Ltd. (2,779.90, -2.2%), Cera Sanitaryware Ltd. (9,833.60, 4.2%) and Colgate-Palmolive (India) Ltd. (3,390, 0.7%).

Stock making new 52 weeks lows included - Equitas Small Finance Bank Ltd. (79.22, -1.7%).

21 stocks climbed above their 200 day SMA including Network18 Media & Investments Ltd. (93.98, 7.1%) and NMDC Steel Ltd. (55.99, 3.8%). 20 stocks slipped below their 200 SMA including Mahindra Lifespace Developers Ltd. (564.75, -3.1%) and Bank of India (118.93, -2.8%).

 
Trendlyne Marketwatch
Trendlyne Marketwatch
05 Aug 2024
Market closes lower, Marico's net profit grows 8.7% YoY to Rs 464 crore in Q1FY25
By Trendlyne Analysis

Nifty 50 closed at 24,055.60 (-662.1, -2.7%), BSE Sensex closed at 78,759.40 (-2,222.6, -2.7%) while the broader Nifty 500 closed at 22,542.45 (-717, -3.1%). Market breadth is sharply down. Of the 2,264 stocks traded today, 178 were in the positive territory and 2,066 were negative.

Indian indices extend the losses from the afternoon session and close deep in the red. The volatility index, Nifty VIX, surged 42.3% and closed at around 20.4 points. Marico closed 1.5% higher in a weak market as its net profit grew by 8.7% YoY to Rs 464 crore in Q1FY25. Revenue increased by 6.2% YoY to Rs 2,680 crore during the quarter.

Nifty Midcap 100 and Nifty Smallcap 100 closed sharply lower following the benchmark index. Nifty Consumer Durables and Nifty IT closed in the red. According to Trendlyne’s sector dashboard, Telecommunications Equipment emerged as the worst-performing sector of the day, with a fall of 5.1%.

European indices traded lower amid weak global cues. Major Asian indices also closed in the red. US index futures traded sharply lower, indicating a negative start to the trading session. Goldman Sachs raises its 12-month recession odds in the US by 10 percentage points to 25% but believes potential rate cuts by the Federal Reserve will limit the risk. It also forecasts a 50 bps rate cut in September if the August employment report is as weak as the July report.

  • Dr Lal Pathlabs sees a long buildup in its August 29 future series as its open interest rises 11.6% with a put-call ratio of 0.3.

  • Power Mech Projects wins a Rs 142.5 crore order from Meenakshi Energy to revive Phase II (2 x 350 MW) in Nellore, Andhra Pradesh, within eight months.

  • Amara Raja Energy & Mobility's Q1FY25 net profit rises 29.6% YoY to Rs 249.1 crore. Revenue grows 16.7% YoY to Rs 3,263.1 crore during the quarter due to healthy traction from international operations. The company appears in a screener of stocks with zero promoter pledge.

  • Marico is rising as its net profit grows by 8.7% YoY to Rs 464 crore in Q1FY25. Revenue increases by 6.2% YoY to Rs 2,680 crore, driven by improvements in the Indian and international markets. It features in a screener of stocks with prices above short, medium, and long-term moving averages.

  • Reports suggest that 14.1 crore shares of Jubilant Pharmova, amounting to Rs 119.6 crore, have changed hands in a block deal.

  • Ola Electric Mobility's Rs 6,145.6 crore IPO gets bids for 0.7X the available 46.5 crore shares on offer on the second of bidding. The retail investor quota gets bids for 2.7X the available 8.5 crore shares on offer.

  • Ceigall India's Rs 1,252.7 crore IPO gets bids for 3.8X the available 2.2 crore shares on offer on the third day of bidding. The retail investor quota gets bids for 3X the available 1.1 crore shares on offer.

  • Devyani International's Q1FY25 revenue rises 44.3% YoY to Rs 1,221.9 crore, beats Forecaster estimates by 3.6%. It reports a net profit of Rs 22.4 crore in Q1FY25 compared to a net loss of Rs 1.6 crore in Q1FY24. It appears in a screener of stocks where mutual funds increased their shareholding in the last quarter.

  • According to a poll of economists, RBI's monetary policy committee (MPC) will maintain the status quo for the eighth straight meeting, scheduled for 6-8th August. The benchmark lending rate, or the repo rate, is expected to remain unchanged at 6.5%.

  • Cera Sanitaryware rises as its board approves a Rs 130 crore buyback of up to 1.1 lakh equity shares at Rs 12,000 per share. The company sets August 16 as the record date for the buyback.

  • Insolation Energy's subsidiary, Insolation Green Infra, signs a memorandum of understanding (MoU) with Ganesh Décor India to set up a 22.68 MW solar power project worth Rs 118 crore in Rajasthan. The company also bags an order worth Rs 24.4 crore from Jaipur Vidyut Vitaran Nigam for a 4.7 MW solar project in Kusum.

  • Archean Chemical Industries falls sharply as its net profit declines by 52.2% YoY to Rs 44.9 crore in Q1FY25. Revenue decreases by 37.2% YoY due to lower sales of bromine, industrial salt, and potassium sulphate. It appears in a screener of stocks with high promoter pledges.

  • InterGlobe Aviation (IndiGo) is set to introduce the ‘IndiGo Stretch’ business class for 12 routes including Chennai, Bangalore, Hyderabad, and Mumbai, starting mid- November. The company also announces plans to launch a customer loyalty programme 'IndiGo BluChip' by September.

  • Ashoka Buildcon emerges as the lowest bidder for two engineering, procurement, and construction (EPC) projects from the Mumbai Metropolitan Region Development Authority (MMRDA). The quoted bid prices are Rs 289.6 crore and Rs 991.2 crore.

  • Shree Renuka Sugars falls sharply as its net loss expands 19.8% YoY to Rs 165.5 crore in Q1FY25, due to higher inventory costs and foreign exchange losses. Revenue grows 32.8% YoY to Rs 3033.9 crore, helped by improvement in the milling and refinery segment. It shows up in a screener of stocks underperforming their industry price change during the quarter.

  • Axis Direct retains its 'Buy' call on Zomato with a target price of Rs 280 per share. This indicates a potential upside of 9.8%. The brokerage believes the company's revenue will increase due to strong demand from the top 10 cities and improved demand for Blinkit. It expects the firm's revenue to grow at a CAGR of 28.7% over FY25-26.

  • Jewellery retailers Titan and Kalyan expect losses of Rs 550 crore and Rs 120 crore, respectively, over the next two quarters due to the 9% reduction in gold import duty announced during the 2024 Budget. Ramesh Kalyanaraman, Executive Director of Kalyan Jewellers, anticipates a one-time write-off of Rs 120 crore in the short term, distributed between Q2 and Q3.

  • Delhivery posts a net profit of Rs 54.4 crore in Q1FY25 compared to a net loss of Rs 89.4 crore in Q1FY24, helped by lower employee benefits expenses. Revenue grows by 12.4% YoY to Rs 2,282.2 crore, owing to improvements in the express parcel and PTL freight segments. It shows up in a screener of stocks with improving return on assets (RoA) over the past two years.

  • Tata Power receives a letter of intent (LOI) from PFC Consulting, a wholly owned subsidiary of Power Finance Corp, to acquire Paradeep Transmission, a project special purpose vehicle (SPV), for Rs 256 crore.

  • Indian Energy Exchange's electricity volume rises 29% YoY to 10,039 million units (MU) in July. IEX Green Market achieves a volume growth of 259% YoY to 989.6 MU.

  • Jefferies believes the FY25 earnings of cement companies are at risk due to price weakness and competitive pressures. The brokerage notes that cement prices are near their 3-4-year lows. It highlights that the muted demand growth trend has continued in July due to monsoons and a slow pickup of new projects. Jefferies sees no scope for price hikes in the near term.

  • Gland Pharma receives Form 483 with three observations from the US FDA after conducting a good manufacturing practices (GMP) inspection at its Pashamylaram facility in Hyderabad.

  • Britannia Industries' Q1FY25 net profit grows by 10.5% YoY to Rs 505.6 crore, helped by reduced inventory costs. Revenue increases by 5.9% YoY to Rs 4,305.9 crore during the quarter. It features in a screener of stocks near their 52-week highs with significant volumes.

  • JK Tyre & Industries falls as its Q1FY25 net profit misses Forecaster estimates by 7.5%, despite rising 37.4% YoY to Rs 211.4 crore due to reduced inventory costs. However, revenue drops 2.1% YoY to Rs 3,639.1 crore during the quarter due to lower sales from Mexico. The company appears in a screener of stocks where mutual funds increased their shareholding over the past two months.

  • Titan falls sharply as its net profit declines by 5% YoY to Rs 715 crore in Q1FY25 due to higher raw materials, employee benefits, finance, and advertisement costs. However, revenue grows by 11.4% YoY to Rs 13,386 crore, on account of improvement in the watches & wearables, jewellery, and eyecare segments. It appears in a screener of stocks underperforming their industries over the past quarter.

  • Gloom in markets in early trading. Nifty 50 was trading at 24,301.30 (-416.4, -1.7%), BSE Sensex was trading at 78,588.19 (-2,393.8, -3.0%) while the broader Nifty 500 was trading at 22,801.70 (-457.8, -2.0%)

  • Market breadth is sharply down. Of the 2,033 stocks traded today, 110 were on the uptick, and 1,901 were down.

Riding High:

Largecap and midcap gainers today include Marico Ltd. (672.15, 1.5%), Dabur India Ltd. (634, 1.0%) and Hindustan Unilever Ltd. (2,715.90, 0.9%).

Downers:

Largecap and midcap losers today include Samvardhana Motherson International Ltd. (175.51, -9.2%), LIC Housing Finance Ltd. (686.15, -8.3%) and Adani Energy Solutions Ltd. (1,159.10, -8.1%).

Volume Rockets

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

Top high volume gainers on BSE included Cera Sanitaryware Ltd. (9,436.70, 5.6%), Dr. Lal Pathlabs Ltd. (3,160.15, 2.1%) and Devyani International Ltd. (181.27, 1.9%).

Top high volume losers on BSE were Samvardhana Motherson International Ltd. (175.51, -9.2%), LIC Housing Finance Ltd. (686.15, -8.3%) and Can Fin Homes Ltd. (782, -6.5%).

Tamilnad Mercantile Bank Ltd. (447.40, -0.8%) was trading at 30.4 times of weekly average. Medplus Health Services Ltd. (663.60, -1.5%) and Ratnamani Metals & Tubes Ltd. (3,497.25, -2.9%) 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

7 stocks took off, crossing 52 week highs, while 4 stocks were underachievers and hit their 52 week lows.

Stocks touching their year highs included - Ajanta Pharma Ltd. (2,841.85, 0.5%), J B Chemicals & Pharmaceuticals Ltd. (1,904, -1.2%) and Sun Pharmaceutical Industries Ltd. (1,720.35, -0.7%).

Stocks making new 52 weeks lows included - IDFC Ltd. (104.87, -3.7%) and Equitas Small Finance Bank Ltd. (80.57, -1.3%).

2 stocks climbed above their 200 day SMA including Nestle India Ltd. (2,510.90, 0.6%) and Delhivery Ltd. (406.10, -2.4%). 47 stocks slipped below their 200 SMA including Tanla Platforms Ltd. (912.65, -6.9%) and Can Fin Homes Ltd. (782, -6.5%).

 
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The Baseline
02 Aug 2024
Five Interesting Stocks Today - August 02, 2024

1. Zen Technologies:

This defense company has jumped 11.2% since the declaration of its Q1FY25 results on July 28 and has risen 32.5% over the last month. In Q1FY25, the company’s net profit grew 68.8% YoY to Rs 79.5 crore, and its operating revenue increased 92.2% YoY to Rs 254.6 crore during the quarter. However, its EBITDA margin decreased by 10%. On 26 July, Zen Technologies hit a 5% upper circuit as it launched four AI-powered robots for the global defense market. The IP-owned robot products are Hawkeye, Barbarik-URCWS (Ultralight Remote Control Weapon Station), Prahasta, and Sthir Stab 640.

Ashok Atluri, Chairman and Managing Director of the firm said, “Training and simulation, including virtual simulators and live ranges, are our cornerstone. Recently, the armed forces have recognized the need for tactical training, preparing soldiers for combat. This shift is expected to drive significant growth for our company and we are confident about meeting our guidance of Rs 900 crores of turnover in the current financial year.“ The company has an outstanding order book valued at Rs 1,158.5 crore as of June 30, a 113% YoY growth. This includes orders worth Rs 647.9 crore for training simulators and Rs 510.9 crore for anti-drone systems. Typically, the company receives a higher number of new orders in Q2 and Q3.

Motilal Oswal has given a ‘Buy’ rating on Zen Technologies with a target price of Rs 1,820. The brokerage states that the current valuation of ZEN is still cheaper than that of other comparable companies in the private defense sector and expects a CAGR of 63% in revenue, 57% in EBITDA, and 57% in PAT during FY 25-27.

2. Navin Fluorine International:

This commodity chemicals company fell by over 4.4% after it announced its results on Tuesday. The company’s net profit fell by 16.8% YoY to Rs 51.2 crore in Q1FY25, while its revenue rose by 6.9% YoY. The firm missed Trendlyne’s forecaster estimates for revenue by 9.2% and for net profit by 17.1%. The stock shows up in a screener for stocks with PE higher than the industry PE.

A big driver of the profit decline was  the company’s specialty chemical segment revenue falling by 30% YoY. It was affected by poor demand and inventory optimization efforts by global clients. By H1FY24, chemical companies lowered their expectations due to weak global demand from a European recession, U.S. inflation, and a slow recovery in China. 

High inventory levels from over-ordering in previous years has resulted in less than 1% YoY growth in chemical output. In response, companies are focusing on cost reduction and improving efficiencies to counter falling production. It was the less profitable High-Performance Product (HPP) segment that was the primary revenue driver for Navin Fluorine, with a 66% YoY growth attributed to stable operations at the Dahej plant and increased utilization and sales of new R32 gas for compressors and refrigerators.

Anish P Ganatra, CFO of the firm, said: “To strengthen the product pipeline in the specialty chemicals vertical we have established an R&D center in Surat and have introduced a new agro molecule in this center for a global major, with an annual peak revenue potential of Rs 40-50 crore over the next three years.” Ganatra also highlighted the signing of a supply agreement for a patented agrochemical product catering to the Japanese market, with an incremental annual revenue potential of Rs 20-30 crore in CY25. The firm’s  priority for the coming quarter is to commission the Agro Specialty project, with a capex of Rs 540 crore.

Axis Direct has given a “Sell” rating on Navin Fluorine International, with a target price of Rs 3,135. The brokerage has revised estimates downward due to the slower-than-expected recovery in the Specialty Chemicals. The brokerage believes that long term growth prospects remain strong and the growth is likely to pick up towards the end of FY25 – but this is subject to project stabilization and optimal capacity utilization. It values the stock at 27x FY26E, which implies a downside of 17% from the CMP.

3. Dixon Technologies:

This smartphone manufacturer rose 6.8% in the past week as its Q1 results beat estimates on all fronts. The company reported a revenue growth of 101.2% YoY to Rs 6,588 crore, beating Trendlyne’s Forecaster estimate by 13%. Net profit rose 94.2% YoY to Rs 133.7 crore, beating forecasts by 20.6%.

Dixon’s 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. The company currently manufactures smartphones and feature phones for brands such as Xiaomi, Motorola, and Samsung. Notable growth was seen in volumes of Motorola smartphones during Q1, driven by rising export orders. In the past four fiscal years, Dixon’s smartphone production capacity has increased at a CAGR of around 100%, thanks to their aim to add capacity of 15 million units on an annual basis.

Dixon’s shares took a hit on Budget day after the Finance Minister proposed to cut import duty on mobile phones and chargers from 20% to 15%. However, Dixon Tech MD, Atul Lall says that the mobile manufacturing ecosystem has matured in India and expects the ‘Made In India’ trend to continue. He also said that India should make all the components going into the smartphones domestically, and expects a package for the component sector soon.

During the earnings call for Q1, Lall said, “We are looking to capture 55-60% of the smartphone market after the Ismartu acquisition, which will add 10-12 million to the current production capacity of 45 million.” He also highlighted that the company plans to deepen its manufacturing capabilities by partnering with HTC for display module technology, with production anticipated to begin in FY26.

BOB Capital Markets maintains a ‘Buy’ rating on Dixon Technologies. The brokerage is upbeat on the company’s outlook because of the strong performance in the mobile & EMS segment. They raised their EPS estimates for FY25/26 by 7% due to the company’s leading position in the electronics manufacturing sector. With a target price of Rs 13,800, the stock has a potential upside of 18.4%.

4. Colgate-Palmolive (India):

This FMCG company has risen by 6.8% over the past week after announcing positive Q1FY25 results on Monday. The company reported net profit growth of 33% YoY to Rs 364 crore, helped by inventory destocking and lower finance costs. Revenue rose 13% YoY to Rs 1,496.7.1 crore, driven by improvements in the toothpaste, toothbrush, and personal care segments. Net profit beat Trendlyne’s Forecaster estimates by 9.6%, while revenue surpassed estimates by 4.5%. EBITDA margins also expanded 238 bps YoY to 34% during the quarter. 

During the quarter, the company reported double-digit sales growth in the toothpaste segment, led by a 7-9% volume growth. The personal care brand Palmolive, which consists of body wash and hand wash, continued to experience strong growth but currently lacks a significant presence in rural areas. The company aims to expand its personal care footprint in India, focusing on the high-growth body wash segment. 

Over the past month, Colgate-Palmolive has risen by 17.6%, outperforming its sector’s by 11.5%. The company witnessed a pick-up in domestic demand in Q1. According to Prabha Narasimhan, the Managing Director & CEO, “We have seen continued demand pickup in rural markets outpacing growth in urban markets for the second quarter in a row”. The re-launch of the Colgate Strong Teeth toothpaste brand helped drive rural growth. Colgate has continued to add new products, increase investments in advertising, and expand its distribution network. During the quarter, ad spends rose 10% YoY.

The company’s peers like Hindustan Unilever, Dabur, and Emami reported a good first quarter and also highlighted signs of rural recovery. Dabur’s CEO said, “The timely arrival of monsoon coupled with a rural-centric Budget with a focus on rural infrastructure, agriculture, and employment is a key positive for the overall sector”. 

Post Colgate’s earnings announcement, Axis Securities has a ‘Hold’ rating with a target price of Rs 3,050. But the brokerage believes the recent sharp rise in share price has capped its upside potential. It anticipates that increasing competitive intensity may further impact long-term growth prospects. 

5. Kaynes Technology:

This electrical equipment manufacturer rose by 4.3% over the past week, following the release of its Q1FY25 results. The company’s net profit rose 106.6% to Rs 50.8 crore, surpassing Trendlyne’s Forecaster estimates by 14.7%. The company appears in a screener of stocks with growth in quarterly net profit with increasing profit margin YoY.

Revenue grew 74.3% to Rs 532.3 crore, beating Forecaster estimates by 4.6%. This was led by strong growth in the automotive (up 56% YoY) and industrial & EV (up 2.7x YoY) verticals. The industrial vertical's revenue contribution increased by 19 percentage points YoY, reaching 55% during the quarter.

Kaynes’ order book has grown to Rs 5,040 crore during the quarter, including major orders in aerospace, EV, and medical sectors. It has onboarded a leading medical equipment provider for exports to Europe and the US, anticipating significant revenue growth from this partnership.

The company plans to expand its business into the outsourced semiconductor assembly and test (OSAT) sector, focusing on modern chip packaging. This expansion is expected to boost exports, which currently makes up 15% of the order book. Commenting on this, Director and Chief Financial Officer Jairam Sampath said, “We anticipate exports to climb from 15% to about 20-25% by FY26, driven by chip packaging in the OSAT sector and expansion in aerospace and medical electronics segments.”

Motilal Oswal retains a “Buy” rating on the stock with a target price of Rs 5,000. The brokerage notes that the Telangana facility, starting by the end of August 2024, will boost the company’s EMS capabilities, especially in the smart meter sector. It remains positive on Kaynes’s strong order book growth, projecting a revenue CAGR of 62% and a PAT CAGR of 78% for FY25-26.

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

 
Trendlyne Marketwatch
Trendlyne Marketwatch
02 Aug 2024
Market closes lower, Maruti Suzuki India's wholesales decline 0.5% YoY to 1.9 lakh units in July
By Trendlyne Analysis

Nifty 50 closed at 24,717.70 (-293.2, -1.2%), BSE Sensex closed at 80,981.95 (-885.6, -1.1%) while the broader Nifty 500 closed at 23259.45 (-247.2, -1.1%). Market breadth is in the red. Of the 2,222 stocks traded today, 816 were in the positive territory and 1,380 were negative.

Market closed in red extending the losses in the afternoon session. The Indian volatility index, Nifty VIX, rose by 10.8% and closed at 14.3 points. Maruti Suzuki India’s wholesales declined 0.5% YoY to 1.9 lakh units in July due to a 28.3% YoY decrease in commercial vehicle wholesales.

Nifty Midcap 100 and Nifty Smallcap 100 closed in red. S&P BSE Midsmallcap & LargeMidcap were among the top index gainers today. According to Trendlyne’s Sector dashboard, Forest Materials emerged as the best-performing sector of the day, with a jump of over 0.7%.

Asian indices closed in red while European indices are trading lower. US index futures traded lower, indicating a cautious start to the trading session. The benchmark 10-year Treasury yield dropped below 4% for the first time since February. Apple’s quarterly services revenue rises along with jump in iPad sales. 

  • Relative strength index (RSI) indicates that stocks like Adani Energy Solutions, Granules India, Ajanta Pharma, and Firstsource Solutions are in the overbought zone.

  • Saregama India falls as its Q1FY25 net profit drops 13.8% YoY to Rs 37.3 crore due to increased content investments. However, revenue rises 6.7% YoY to Rs 173 crore during the quarter. The company appears in a screener of stocks with declining cash flow from operations for the last two years.

  • Computer Age Management Services' Q1FY25 net profit surges 41.3% YoY to Rs 107 crore, beating Forecaster estimates by 5.1%. Revenue increases 26.8% YoY to Rs 331.4 crore during the quarter. It appears in a screener of stocks where mutual funds increased their shareholding over the past two quarters.

  • KR Choksey maintains its 'Buy' call on Varun Beverages with a higher target price of Rs 1,845 per share. This implies a potential upside of 17.1%. The brokerage believes the company's expansion plans and strategic market positioning with its partnership with Pepsico will help improve revenue and profitability. It expects the firm's revenue to grow at a CAGR of 12.7% over FY25-26.

  • Jefferies reiterates its 'Buy' rating on Adani Enterprises with a target price of Rs 3,800. The brokerage's positive outlook is fueled by robust performance metrics and strategic growth in the company's key sectors. It expects a gradual unlocking of value across various businesses over the next few years. The board has already approved the demerger of its FMCG division to Adani Wilmar, which is expected to be finalised by the end of FY25.

  • Ola Electric Mobility's Rs 6,145.6 crore IPO gets bids for 0.3X the available 46.5 crore shares on offer on the first day of bidding. The retail investor quota gets bids for 1.3X the available 8.5 crore shares on offer.

  • Ceigall India's Rs 1,252.7 crore IPO gets bids for 1X the available 2.2 crore shares on offer on the second day of bidding. The retail investor quota gets bids for 1.4X the available 1.1 crore shares on offer.

  • RailTel Corp of India rises as its revenue grows by 19.4% YoY to Rs 558.1 crore in Q1FY25, driven by improvements in the telecom and project work services segments. Net profit increases by 29.9% YoY to Rs 48.7 crore during the quarter. It shows up in a screener of stocks outperforming their industry price change during the quarter.

  • Aloke Bajpai, Group CEO of LE Travenues Technology (Ixigo), highlights Tier 2 & 3 cities are the highest usage markets for the company and expects demand to rise 50% over the next decade. He adds that the firm's online travel agent market share as of Dec 2023 was at 6.5% vs 5.9% YoY and expects it to improve further this year. He aspires to move from mid-single digits in the flight segment to double digits.

  • Zydus Wellness is rising as its net profit grows by 33.8% YoY to Rs 147.7 crore in Q1FY25, helped by lower raw materials and finance costs. Revenue increases by 20.1% YoY to Rs 846 crore on the back of improvement in the food & nutrition and personal care segments. It features in a screener of stocks with more than 20% in stock price in the past month.

  • Godrej Agrovet's Q1FY25 net profit rises 28.3% YoY to Rs 135.2 crore due to improved realisations in the domestic crop protection business and margin expansion in animal feed and dairy businesses. However, revenue falls 6.3% YoY to Rs 2,350.8 crore during the quarter. The company appears in a screener of stocks with zero promoter pledge.

  • Shakti Pumps surges to its 5% upper circuit as it bags an order worth Rs 558.2 crore from the Department of Agriculture, Uttar Pradesh, for the supply, installation, and commissioning of 12,537 solar water pumping systems.

  • Tata Motors Group CFO P.B. Balaji highlights Jaguar Land Rover (JLR) does not intend to take advantage of India's new electric vehicle policy, which provides import duty concessions to companies establishing manufacturing operations in the country. He also emphasises the company has recently localised manufacturing Range Rover and Range Rover Sport and anticipates a significant increase in orders for these models.

  • TTK Prestige rises sharply to its new 52-week high of Rs 1,013.5 as its board approves a Rs 200 crore buyback of up to 16.7 lakh equity shares at Rs 1,200 per share. The company sets August 14 as the record date for the buyback.

  • Triveni Engineering & Industries falls sharply as its Q1FY25 net profit declines by 53.7% YoY to Rs 31.3 crore due to higher inventory and employee benefits expenses. However, revenue rises by 6.9% YoY to Rs 1,544.8 crore, helped by an increase in the sugar & distillery segments. It shows up in a screener of stocks with declining net cash flow.

  • RattanIndia Power rises as it reports a profit of Rs 93 crore in Q1FY25, compared to a loss of 549.4 crore in Q1FY24 due to lower finance costs. Revenue grows 10% YoY to Rs 931.8 crore during the quarter. The company appears in a screener of stocks where mutual funds increased their shareholding over the past two months.

  • Abhay Soi, the CMD of Max Healthcare highlights that a 6-7% increase in high-end surgeries led to ARPOB (average revenue per occupied bed) growth. He adds that the company targets a capex of Rs 5,000-5,500 crore over the next four years. Soi anticipates that the Dwarka facility will breakeven by the end of FY25.

  • Netweb Technologies India rises sharply after 20.5 lakh shares (3.6% stake), amounting to Rs 459 crore, reportedly change hands in a block deal. The company's promoters are the likely sellers in the transaction.

  • Hero MotoCorp falls as its monthly wholesales decline 5.4% YoY to 3.7 lakh units in July due to lower motorcycle sales and domestic business. However, its exports grow by 13% YoY to 22,739 units during the month.

  • GR Infraprojects falls as its Q1FY25 net profit drops 49.8% YoY to Rs 155.5 crore. However, revenue decreases 18.1% YoY to Rs 2,030.3 crore during the quarter due to lower business growth in the build, operate, and transfer (BOT) segment. The company appears in a screener of stocks where mutual funds increased their shareholding in the past month.

  • Morgan Stanley has an ‘Underweight’ rating on Eicher Motors with a target price of Rs 3,533. The brokerage believes the company’s share price will decline over the next two months. It highlights the muted volumes, in the Royal Enfield segment.

  • Maruti Suzuki India falls sharply as its wholesales decline 0.5% YoY to 1.9 lakh units in July due to a 28.3% YoY decrease in commercial vehicle wholesales.

  • SJS Enterprises surges to its all-time high of Rs 958 as its Q1FY25 net profit rises 54.6% YoY to Rs 27.8 crore. Revenue grows 60.8% YoY to Rs 188.6 crore during the quarter, due to strong business growth in passenger vehicles, consumer segments, and exports. The company appears in a screener of stocks with zero promoter pledge.

  • Kalyan Jewellers rises as its net profit grows by 23.5% YoY to Rs 177.8 crore in Q1FY25, helped by inventory destocking and a deferred tax return of Rs 29.6 crore. Revenue increases by 26.7% YoY to Rs 5,557.6 crore, driven by new showrooms and customer additions. It features in a screener of stocks with the highest recovery from their 52-week lows.

  • Tata Motors is falling as its Q1FY25 net profit misses Forecaster estimates by 2.6%, despite growing by 73.8% YoY to Rs 5,566 crore. Revenue rises by 5.8% YoY to Rs 1.1 lakh crore, helped by improvements in the commercial vehicles and vehicle financing segments. It appears in a screener of stocks with increasing costs YoY for long-term projects.

  • Markets fell in early trading. Nifty 50 was trading at 24,821.75 (-189.2, -0.8%) , BSE Sensex was trading at 81,208.97 (-658.6, -0.8%) while the broader Nifty 500 was trading at 23,333.10 (-173.5, -0.7%)

  • Market breadth is moving down. Of the 1,956 stocks traded today, 275 were gainers and 1,647 were losers.

Riding High:

Largecap and midcap gainers today include Zomato Ltd. (262.34, 12.1%), Adani Wilmar Ltd. (383.15, 10.0%) and One97 Communications Ltd. (527, 6.1%).

Downers:

Largecap and midcap losers today include Cummins India Ltd. (3,510.85, -8.0%), Escorts Kubota Ltd. (3,905.20, -5.9%) and Eicher Motors Ltd. (4,726.70, -4.9%).

Volume Rockets

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

Top high volume gainers on BSE included Zomato Ltd. (262.34, 12.1%), Adani Wilmar Ltd. (383.15, 10.0%) and Jammu & Kashmir Bank Ltd. (116.96, 6.8%).

Top high volume losers on BSE were Cummins India Ltd. (3,510.85, -8.0%), Eicher Motors Ltd. (4,726.70, -4.9%) and Thermax Ltd. (4,984.30, -3.8%).

Ramkrishna Forgings Ltd. (887.20, 4.7%) was trading at 10.9 times of weekly average. Bikaji Foods International Ltd. (739.25, 3.4%) and Hatsun Agro Products Ltd. (1,270.55, 4.4%) were trading with volumes 10.5 and 6.4 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

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

Stocks touching their year highs included - Ajanta Pharma Ltd. (2,828.50, 1.3%), Akzo Nobel India Ltd. (3,117.50, 0.2%) and Aurobindo Pharma Ltd. (1,443.30, 0.7%).

Stock making new 52 weeks lows included - Equitas Small Finance Bank Ltd. (81.59, 1.6%).

3 stocks climbed above their 200 day SMA including eClerx Services Ltd. (2,439.95, -0.1%) and Adani Total Gas Ltd. (908.90, -0.7%). 17 stocks slipped below their 200 SMA including Gujarat Narmada Valley Fertilizers & Chemicals Ltd. (679.45, -3.4%) and Bank of Baroda (243.70, -3%).

Vistas Corporation Ltd. (340.20, -1.8%).

 
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The Baseline
02 Aug 2024
Superstar investors on a selling spree as markets hit record highs | Screener: Promoters increase pledges in these stocks
By Tejas MD

You know the experience of watching someone blow air into a balloon? They puff and puff and sometimes they keep going even when the balloon looks about to pop. That's what investors have been feeling, with the Indian indices.

We've seen yet another all-time high for the Nifty 50 this week: the benchmark index has hit its all-time high for the eleventh week in a row. The bull run is now a full gallop, and the Nifty is within kissing distance of 25,000 as of this writing. 

US markets on the other hand, have recently struggled as the tech-heavy Nasdaq 100 fell 3.6% on Friday, the most since 2022. Tesla and tech stocks took a beating as investors and analysts reconsidered the promise of AI. The S&P 500 and Dow Jones also fell on Friday, down 2.3% and 1.2%. Bloomberg called the sudden drop ‘scary and long overdue’ – the S&P 500 had been on a 17-month streak without a drop of 2%, unseen since 2007. 

But Indian markets seem unbothered by US weakness, and managed to hit another all-time high on Monday. This long upward trend has investors biting their nails. This nervousness is also showing up in the portfolios of superstars. Investors like Kacholia and Singhania sold much more than they bought in Q1FY25.

Which sectors are superstar investors worried about? And which are the few stocks that they bought?  

In this week’s Analyticks,

  • Watching the balloon: Superstar investors think twice before adding new companies to their portfolios
  • Screener: Promoters that increased pledged shares QoQ in Q1FY25

Let’s dive in.

Superstar investors go on a selling spree as markets hit all-time highs

Superstar investors have turned picky with their investments as the market heats up. 

Many top superstar investors saw their portfolio net worth fall in Q2FY25 (till July 29) – the trend is visible in the new shareholding data for Q1FY25. This is not because of underperformance but because superstar investors have sold their holdings in many companies. The portfolio net worth of  Ashish Kacholia, Sunil Singhania, and Vijay Kishanlal Kedia has fallen at least 7.5% in Q2FY25 till July 29, as they went into selloff mode. 

Major superstar investors see net worth fall in Q2 after major sells

Dolly Khanna’s portfolio on the other hand, has risen the highest (9.6%) as this superstar investor increased her stake in many companies, and bought new stakes in five companies. Rakesh Jhunjhunwala’s portfolio, now managed by Rare Enterprises, has remained flat as the team did not make any big changes, but sold small stakes in seven companies. 

Ashish Kacholia, who favors small-cap companies, sold his stake to below 1% in seven companies, and made only one new buy. Singhania and Kedia did not buy any new stocks in the past quarter, and each cut stakes to below 1% in two companies.

Singhania and Kedia did not add any new stock to their portfolios in Q1

In all, the superstars in focus bought new stakes in only ninecompanies (Khanna bought in five) and sold their stakes to below 1% in 21 companies. 

Superstar investors are selling overvalued and loss-making companies

When it comes to sells, it’s a particular kind of stock that is being dropped: the stock is either in the PE sell zone (trading higher than their historical PEs) or is making losses.

Only two stocks in the sell list are exceptions here, being profitable and trading in the PE buy zone – Shankara Building Products and Route Mobile. Kacholia and Mukul Agarwal sold their stakes in Shankara Building Products to below 1%. 

Most stocks sold by superstar investors trade in PE Sell Zone

Superstar investors sell industrials, metals stocks

General Industrials and Metals and Mining sectors dominate the sell list, followed by Consumer Durables and textiles. Interestingly, Goldman Sachs noted that American hedge funds are also selling off industrial stocks, amid concerns around GDP growth for the US and China. 

General Industrials sector dominates the superstar sell list 

The sells list also includes loss-making companies (negative net profit TTM) – Reliance Infra, Sterlite Technologies, Barbeque-Nation, and Dish TV India. 

Expert investors are buying new stakes in financially strong, moderately valued and rising companies

Three themes come to light when looking at the buy list – strong financials, rising share prices and moderate value. 

Barring Paytm and Super Sales India, all other companies’ Trendlyne Durability score is in the ‘Good’ category. A high Durability score indicates good and consistent financial performance: stable revenues, profits, cash flows and low debt. 

Superstar investors are buying rising stocks with good financial health

Paytm is the only loss-making company that features in the list, bought by Akash Bhanshali. During the same quarter, Softbank, which had an initial investment in Paytm of around $1.55 billion, exited its position at a loss of 12%-14%. 

Nile and Dilip Buildcon top the list with a durability score of 80 and 75. These two companies’ momentum and valuation scores are also in the good category, making them ‘Strong Performers’.

Investors look to ride the momentum on moderately valued stocks

Eight out of the nine companies bought recently have PE TTM lower than their sector PE. 

In addition, the PEG ratio, which includes the net profit growth component into the PE ratio, is lower than one for all companies except Ujjivan. A PEG ratio of less than one can indicate undervaluation. Paytm (loss-making) and newly listed Awfis Space Solutions, are excluded in this analysis. 

Most stocks bought by superstar investors are trading below their sector PE TTM


The final theme among the stocks in the buy list is Momentum - a critical factor in a bull market. All stocks except Ujjivan Small Finance Bank have risen in the past quarter. 

Only Ujjivan Small Finance Bank underperforms Nifty 50 in the past quarter and year

Ashish Kacholia’s new bet Awfis Space Solutions, which was listed on May 30, is already up 81.6%. Top performers over the past year include Tinna Rubber, Emkay Global and Nile. 

Rakesh Jhunjhunwala’s old bet Titan outshines in long term growth

When we look at long-term bets by these superstars, late Rakesh Jhunjhunwala’s Titan and Mukul Agarwal's Neuland Labs come out on top. Titan and Neuland Labs respectively contribute to 33.7% and 5.7% of their portfolios. 

Best performing long-term holdings: Jhunjhunwala's Titan, Mukul Agarwal's Neuland Labs

Bhanshali’s Gujarat Fluorochemicals (27.3% of total holding value) and Kedia’s Atul Auto (24.7% of total holding value) on the other hand, have failed to beat the benchmark index in terms of share price performance since they bought these stocks. However, both these superstar investors’ net worth has almost doubled in the past year, due to high performance in their other holdings and fresh buys in new stocks. 

India's superstar investors have become famous for their patience during the ups and downs of the market. The recent, increased selling in their portfolios could be an important signal. Warren Buffett once said, ‘Be fearful when others are greedy’. And right now, valuations of many stocks look greedy indeed.

Screener: Promoters increasing pledged shares QoQ in Q1FY25

Banking and construction stocks see a rise in promoter pledges in Q1FY25

As the latest shareholding data for companies came in, we took a look at stocks that saw a significant rise in promoter-pledged shares (which indicates higher loans taken out against stock). This screener identifies companies where pledged shares by promoters are greater than 20% and have increased QoQ in Q1FY25.

The screener has stocks from the banking, cement & construction and metals & mining sectors. Major stocks that appear in the screener are 360 One Wam, IRB Infrastructure Development, Max Financial Services, Kalpataru Projects, India Cements, Hindustan Zinc, and Lloyds Metals & Energy. Most of the stocks in the screener have seen their promoters also sell stakes over the past quarter. 

360 One Wam stands out with the highest rise of 9.2 percentage points QoQ in promoter-pledged shares. This takes the promoter pledge to 40.5% of their total holding in Q1FY25. Yatin Shah holds a 3.7% stake in the company and has pledged 73.6% of his holding, while Kush Family Private Trust and Kyra Family Private Trust have a 1.5% stake each and have pledged 100% of their holding. 

IRB Infrastructure Developers’ promoters increased their pledges by 6.4 percentage points in Q1FY25. This takes the company’s promoter pledge to 55.3% of their total holding in the company. IRB Holdings holds a 29.5% stake in the company and has pledged 56.9% of its total holding. 

You can find some popular screeners here.

 
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The Baseline
01 Aug 2024
Five stocks to buy from analysts this week - July 31 2024
By Ruchir Sankhla

1. Thyrocare Technologies:

ICICI Securities maintains a ‘Buy’ rating on this healthcare services company with a target price of Rs 825, indicating a potential upside of 6.3%. In Q1FY25 the company’s net profit rose 39.7% YoY to Rs 24.2 crore, beating Trendlyne’s Forecaster estimates by 11.4%. Its operating revenue grew 16.3% to Rs 156.9 crore, driven by the pathology business. 

Analysts Abdulkader Puranwala and Nisha Shetty state, "Thyrocare’s management is diversifying its historically high-volume test-focused business model." They note the recent launch of bundled test packages like 'Jaanch,' which grew 25% year-over-year, and the acquisition of Polo Labs and Think Healthcare to expand Thyrocare’s test menu and service offerings.

Puranwala and Shetty expect Thyrocare to achieve a 33% earnings CAGR from FY25 to FY26, with an RoCE of approximately 22.3% by FY26. They project cumulative free cash flow generation of Rs 260 crore over the same period. While the stock has recently hit a fresh year high, it has underperformed the Sensex and Nifty over five years.

2. Jindal Steel & Power:

Motilal Oswal reiterates a ‘Buy’ rating on this iron and steel products company with a target price of Rs 1,200, indicating a potential upside of 22.9%. In Q1FY25 the company’s net profit fell 20.5% YoY to Rs 1,340.2 crore, but beat Trendlyne’s Forecaster estimates by 6.9%. Revenue grew 8% to Rs 13,652.3 crore, driven by healthy volumes.

Analysts Alok Deora and Sonu Upadhyay note that as of June 2024, the company has spent approximately Rs 17,500 crore of the Rs 31,000 crore allocated for its capital expenditure plan and aims to incur the remaining Rs 13,500 crore over the next three years. They also highlight that the management does not anticipate any cost increases due to the delay in the BOF-II plant expansion, which is expected to be completed by the second quarter of FY25.

Analysts say, “While first-quarter results were slightly below our estimate, the outlook remains bright.” They expect ongoing capital expenditures to lead to more value-added products, resulting in better profitability.

3. Pitti Engineering:

KRChoksey retains a ‘Buy’ rating on this electrical equipment manufacturer with a target price of Rs 1,379, indicating a potential upside of 15.1%. In FY24 the company reported a net profit rise of 53.3% to Rs 90.2 crore, beating Forecaster estimates by 21.5%. Operating revenue grew 9.2% to Rs 1,201.6 crore.

Analyst Unnati Jadhav notes that the company has agreed to acquire 100% of Dakshin Foundry’s equity for Rs 153.1 crore. Dakshin Foundry specializes in high-quality castings from materials like ductile iron, grey iron, low carbon steel and alloy steel. In March 2024, the company also acquired Bagadia Chaitra Industries (BCIPL) for Rs 124.9 crore. The analyst believes these acquisitions will boost production capacity and operational capabilities, supporting the company's inorganic growth strategy.

Jadhav expects a CAGR of 26.8% for revenue, 29.7% for EBITDA, and 42.9% for PAT over FY25-26 and anticipates FY26 EPS to be Rs 57.5 due to strong demand across various sectors, and increased capacity from recent acquisitions.

4. Coforge:

Axis Direct maintains a ‘Buy’ rating on this IT consulting and software company with a target price of Rs 6,895. This indicates an upside of 9.2%. In Q1FY25, the company‘s revenue grew 1.8% YoY to Rs 2,400.8 crore, but missed Trendlyne’s Forecaster estimates by 1.1%. Net profit fell by 19.4% YoY to Rs 133.2 crore due to higher operating expenses and acquisition-related costs. The company witnessed increased demand in North America, which contributes 50% of its revenue.

Analyst Omkar Tanksale highlights that the company’s growth is supported by a strong deal pipeline, with significant wins in the banking, financial services and insurance (BFSI) and travel sectors. He expects continued momentum from these deals and anticipates the revival of the BFSI sector, projecting double-digit growth in FY25.  

Tanksale notes concerns about cross-currency headwinds affecting margins but remains positive about the company’s growth potential and strong deal pipeline in the long term perspective.He projects a revenue CAGR of 20.9% and an adjusted PAT CAGR of 29.7% over FY25-26.

5. Schaeffler India:

Sharekhan maintains a ‘Buy’ rating on this auto parts and equipment manufacturer with an upgraded target price of Rs 4,764. This indicates an upside of 13.3%. In Q2CY24, Schaeffler’s net profit grew 12.8% YoY to Rs 253 crore. Analysts attribute this growth to increased exports and expansion into new markets in Asia. The analysts state “The improvement in export performance can be attributed to the completion of de-stocking in the European market, and the rise of new markets in the Asia-Pacific region.”

Analysts highlight Schaeffler’s focus on high-value electric vehicle components, domestic demand, and export revenues. They expect continued momentum from its railways business and see potential growth in the non-bearings segment, driven by innovative solutions for hybrid power trains.The management remains positive about the company's order wins, backed by its technological expertise and cost-effective manufacturing.

The analysts project revenue and net profit CAGR of 16.8% and 19.5% respectively, over CY25-26, driven by Schaeffler’s strategic focus on localisation, expanding its product portfolio, and leveraging its brand equity in the aftermarket business.

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

(You can find all analyst picks here)