My Newsfeed

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%).

 
logo
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%).

 
logo
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.

 
logo
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)

 
Trendlyne Marketwatch
Trendlyne Marketwatch
01 Aug 2024
Market closes higher, Tata Motors' wholesales decline 11% YoY to 70,161 units in July
By Trendlyne Analysis

Nifty 50 closed at 25,010.90 (59.8, 0.2%) , BSE Sensex closed at 81,867.55 (126.2, 0.2%) while the broader Nifty 500 closed at 23,506.60 (-24.2, -0.1%). Market breadth is sharply down. Of the 2,183 stocks traded today, 686 were gainers and 1,481 were losers.

Markets closed higher after rebounding in late trading. The Indian volatility index, Nifty VIX, fell 2.4% and closed at 12.9 points. Coal India rises to its all-time high of Rs 542.2 per share as its net profit grows by 4.1% YoY to Rs 10,959.5 crore in Q1FY25 and revenue increases by 1.3% YoY to Rs 36,464.6 crore during the quarter.

Nifty Smallcap 100 and Nifty Midcap 100 closed in the red. Nifty Energy and S&P BSE Utilities were among the top index gainers today. According to Trendlyne’s Sector dashboard, Utilities emerged as the best-performing sector of the day, with a rise of 1.8%.

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

  • Money flow index (MFI) indicates that stocks like Just Dial, Torrent Power, CCL Products India and Suven Pharmaceuticals are in the overbought zone.

  • Tata Motors is falling as its total wholesales decline by 11% YoY to 70,161 units in July, due to an 18% YoY and 6% YoY decrease in commercial vehicle and passenger vehicle wholesales, respectively.

  • Tata Power rises as its step-down subsidiary signs a power delivery agreement with Tata Steel for a 70 MW group captive solar power plant at Akola, Maharashtra. This project is expected to generate 154 million units (MUs) of power annually and reduce carbon emissions by 1,15,000 tonnes.

  • Hero FinCorp files a draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) for an initial public offering (IPO) worth Rs 3,668 crore. The IPO consists of an offer for sale (OFS) worth Rs 1,568 crore and a fresh issue valued at Rs 2,100 crore.

  • Ceigall India's Rs 1,252.7 crore IPO gets bids for 0.4X the available 2.2 crore shares on offer on the first day of bidding. The retail investor quota gets bids for 0.6X the available 1.1 crore shares on offer.

  • Akums Drugs and Pharmaceuticals' Rs 1,856.7 crore IPO gets bids for 18.1X the available 1.5 crore shares on offer on the third day of bidding. The retail investor quota gets bids for 15.8X the available 27.1 lakh shares on offer.

  • Sonata Software falls sharply as its net profit declines 4.3% QoQ to RS 105.6 crore in Q1FY25 due to higher inventory and employee benefits expenses. However, revenue grows 13.4% QoQ to Rs 2,546.3 crore, helped by an improvement in the Indian market and strong order wins during the quarter. It features in a screener of stocks with PE higher than their industry PE.

  • Anish Shah, Managing Director of Mahindra & Mahindra, notes the tractor segment has gained 180 bps market share in Q1FY25, and growth across other segments. He projects a 5% volume growth for the tractor segment in FY25. Shah expects the auto business to grow by 15% over the next three years.

  • Bank of Baroda's net profit grows 6.2% YoY to Rs 4,727.8 crore in Q1FY25. Revenue increases by 7.5% YoY to Rs 35,800.9 crore, driven by improvements in the retail and wholesale banking segments. Its asset quality improves as gross and net NPAs decline by 63 bps YoY and 9 bps YoY, respectively.

  • Relaxo Footwears is falling as its Q1FY25 net profit drops 21.2% YoY to Rs 44.4 crore due to an increase in minimum wages, mandated by the government. However, operating revenue rises 1.2% YoY to Rs 748.2 crore during the quarter due to weak consumer sentiments and severe heatwave conditions in many parts of India. The company appears in a screener of stocks where mutual funds increased their shareholding over the past two months

  • Hem Securities initiates a 'Buy' call on KEC International with a target price of Rs 1,100 per share. This indicates a potential upside of 18.3%. The brokerage believes the company will continue to benefit from its healthy order book position, strong execution capabilities, and healthy financial position. It expects the firm's revenue to grow at a CAGR of 9.8% over FY25-26.

  • Restaurant Brands Asia rises more than 3% as 1.5 crore shares (3% equity), amounting to Rs 168.5 crore, reportedly change hands in a large trade.

  • Thomas Cook plunges more than 9% as its Q1FY25 net profit misses Forecaster estimates by 20.2%, despite growing by 3.3% YoY to Rs 75.3 crore. Revenue increases 10.5% YoY to Rs 2,134.3 crore, helped by improvements in the travel & related services and leisure hospitality & resorts segments. It shows up in a screener of high volume, top losing stocks.

  • JK Lakshmi Cement's Q1FY25 revenue falls 9.6% YoY to Rs 1,563.9 crore, misses estimates by 6.3%. Net profit declines 15.3% YoY to Rs 67.6 crore during the quarter. It appears in a screener of stocks where mutual funds decreased their shareholding in the last quarter.

  • GE T&D India surges to its 5% upper circuit as its Q1FY25 net profit rises 174% YoY to Rs 134.5 crore due to reduced finance and inventory costs. Revenue grows 33.5% YoY to Rs 958.3 crore during the quarter. The company appears in a screener of stocks with rising net profit margins on a quarterly and TTM basis.

  • India’s manufacturing PMI moderates to 58.1 in July compared to 58.3 in June, due to a slightly slower growth in new orders and output. The PMI reading has stayed above the 50-mark since July 2021.

  • Bajaj Auto is rising as its wholesales grow 11% to 3.5 lakh units in July. Two-wheeler wholesales increase by 10.7% YoY, while commercial vehicle wholesales improve by 11.2% YoY.

  • Godrej Properties falls as its Q1FY25 net profit rises 3.1X to Rs 520.1 crore due to improvement in inventory costs. However, revenue drops 20% YoY to Rs 739 crore during the quarter. The company appears in a screener of stocks near their 52-week highs.

  • Aster DM Healthcare rises sharply as its net profit surges to Rs 5,145.2 crore in Q1FY25 from Rs 4.9 crore in Q1FY24, helped by the sale of its Gulf business. Revenue grows by 23.7% YoY to Rs 1,050.6 crore during the quarter. It appears in a screener of stocks with the highest FII holding.

  • Morgan Stanley has an ‘Overweight’ rating on Ashok Leyland with a target price of Rs 284 per share. The brokerage believes the company’s share price will increase over the next 60 days. It expects a shallow down-cycle for CVs, and notes the industry’s focus on margins.

  • Sansera Engineering rises as it signs a memorandum of understanding (M0U) with Karnataka Udyog Mitra to acquire 55 acres of industrial land in Harohalli, Bengaluru. The company commits to investing approximately Rs 2,100 crore over the next 3 to 5 years.

  • Coal India rises to its all-time high of Rs 539.9 per share as its net profit grows by 4.1% YoY to Rs 10,959.5 crore in Q1FY25, helped by reduced raw materials, inventory, and employee benefits expenses. Revenue increases by 1.3% YoY to Rs 36,464.6 crore during the quarter. It features in a screener of stocks with YoY growth in quarterly net profit and profit margin.

  • Prestige Estates Projects falls as its Q1FY25 net profit drops 12.8% YoY to Rs 232.6 crore due to high contractor cost. However, revenue rises 10.7% YoY to Rs 1,862.1 crore during the quarter. The company appears in a screener of stocks with zero promoter pledge.

  • Tata Steel's Q1FY25 net profit grows by 51.4% YoY to Rs 959.6 crore, helped by inventory destocking and lower raw materials, and finance costs. However, revenue declines by 9.3% YoY to Rs 55,031.3 crore due to a decrease in the domestic and UK markets. It shows up in a screener of stocks with declining returns on capital employed (RoCE) over the past two years.

  • Nifty 50 was trading at 25,054.05 (102.9, 0.4%), BSE Sensex was trading at 81,949.68 (208.3, 0.3%) while the broader Nifty 500 was trading at 23,612.35 (81.6, 0.4%).

  • Market breadth is ticking up strongly. Of the 1,928 stocks traded today, 1,333 were on the uptick, and 562 were down.

Riding High:

Largecap and midcap gainers today include Adani Energy Solutions Ltd. (1,275.20, 12.1%), Oil India Ltd. (599.05, 3.7%) and Power Grid Corporation of India Ltd. (361.10, 3.7%).

Downers:

Largecap and midcap losers today include General Insurance Corporation of India (411.95, -4.2%), ACC Ltd. (2,487.90, -4.0%) and Dixon Technologies (India) Ltd. (11,670.55, -3.6%).

Volume Shockers

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

Top high volume gainers on BSE included Adani Energy Solutions Ltd. (1,275.20, 12.1%), Jubilant Pharmova Ltd. (866.20, 12.0%) and Firstsource Solutions Ltd. (301, 10.1%).

Top high volume losers on BSE were Sonata Software Ltd. (664.15, -9.9%), KRBL Ltd. (294.75, -7.4%) and Prince Pipes & Fittings Ltd. (645.90, -4.1%).

Capri Global Capital Ltd. (225.55, 7.9%) was trading at 12.2 times of weekly average. Akzo Nobel India Ltd. (3,111.75, 4.6%) and Emami Ltd. (824.10, 0.9%) were trading with volumes 9.4 and 8.0 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

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

Stocks touching their year highs included - Adani Energy Solutions Ltd. (1,275.20, 12.1%), Ajanta Pharma Ltd. (2,792.50, 3.6%) and Akzo Nobel India Ltd. (3,111.75, 4.6%).

Stock making new 52 weeks lows included - Equitas Small Finance Bank Ltd. (80.28, -0.6%).

7 stocks climbed above their 200 day SMA including Capri Global Capital Ltd. (225.55, 7.9%) and Adani Total Gas Ltd. (915.55, 2.2%). 9 stocks slipped below their 200 SMA including Sonata Software Ltd. (664.15, -9.9%) and Birlasoft Ltd. (643, -4.8%).

 
Trendlyne Marketwatch
Trendlyne Marketwatch
31 Jul 2024
Market closes higher, Mahindra & Mahindra’s revenue grows 10.8% YoY to Rs 37,010.1 crore in Q1FY25
By Trendlyne Analysis

Nifty 50 closed at 24,951.15 (93.9, 0.4%), BSE Sensex closed at 81,741.34 (285.9, 0.4%) while the broader Nifty 500 closed at 23,530.80 (89.9, 0.4%). Market breadth is balanced. Of the 2,179 stocks traded today, 1,036 were in the positive territory and 1,127 were negative.

Indian indices extended their gains in the afternoon session and closed in the green. The volatility index, Nifty VIX, rose 2.9% and closed at around 13.3 points. Mahindra & Mahindra’s revenue grew 10.8% YoY to Rs 37,010.1 crore in Q1FY25, however, net profit declined 3.7% YoY to Rs 3,545.8 crore during the quarter.

Nifty Midcap 100 closed in the green, meanwhile, Nifty Smallcap 100 closed in the red. S&P BSE Utiliti and Nifty Metal closed higher. According to Trendlyne’s sector dashboard, Forest Materials emerged as the top-performing sector of the day, with a rise of 1.4%.

European indices traded higher, except Russia’s RTSI index, which traded in the red. Most Asian indices closed higher. US index futures traded in the green, indicating a positive start to the trading session. The Bank of Japan raised its benchmark interest rate to 0.25% from 0-0.1%. The US Federal Reserve will conclude its July meeting later today and is expected to maintain its benchmark interest rate in the 5.25%-5.50% range.

  • Granules India sees a long buildup in its August 29 future series as its open interest rises 35.5% with a put-call ratio of 0.8.

  • Birlasoft's Q1FY25 revenue rises 5.1% YoY to Rs 1,327.4 crore, driven by improvements in the BFSI and energy & utilities segments. Net profit grows 9.2% YoY to Rs 150.2 crore, but misses Forecaster estimates by 7%. It shows up in a screener of stocks with increasing profits every quarter for the past four quarters.

  • Rites falls as its Q1FY25 net profit drops 26.8% YoY to Rs 79 crore due to higher employee benefits and supply expenses. Revenue declines 10.7% YoY to Rs 485.7 crore during the quarter, caused by lower sales in the consultancy and export segments. The company appears in a screener of stocks where mutual funds increased their shareholding over the past two months.

  • Mahindra & Mahindra is rising as its revenue grows 10.8% YoY to Rs 37,010.1 crore in Q1FY25, helped by improvements in the automotive and financial services segments. However, net profit declines 3.7% YoY to Rs 3,545.8 crore during the quarter. It shows up in a screener of stocks outperforming their industry price change during the quarter.

  • Anand Rathi expects solid growth in automobile wholesales due to improved retail and inventory levels. The brokerage anticipates strong volume growth across all segments, particularly in two-wheelers. It upgrades its growth forecast for M&H CVs to high single digits, driven by robust bus demand (14% CAGR), ongoing replacement demand, and positive infrastructure and economic activity.

  • Bharat Heavy Electricals falls as its net loss expands by 3.2% YoY to Rs 211.4 crore in Q1FY25 due to higher raw materials and inventory costs. However, revenue grows by 9.1% YoY to Rs 5,581.8 crore, driven by a rise in the power and industry segments. It appears in a screener of stocks with declining cash flow from operations over the past two years.

  • Akums Drugs and Pharmaceuticals' Rs 1,856.7 crore IPO gets bids for 2.9X the available 1.5 crore shares on offer on the second day of bidding. The retail investor quota gets bids for 6.9X the available 27.1 lakh shares on offer.

  • Ambuja Cements' Q1FY25 net profit drops 28.6% YoY to Rs 646.3 crore due to higher raw material and inventory costs. Revenue declines 4.6% YoY to Rs 8,311.5 crore during the quarter. The company appears in a screener of stocks where mutual funds increased their shareholding over the past two months.

  • Anurag Mantri, Executive Director & Group CFO of Jindal Stainless, guides a 20% volume growth for FY25 and EBITDA ranging from 18,000-20,000/tonne. He adds that exports grew at subpar levels of 10-12% amid the Red Sea crisis. He highlights the company's target to achieve an EBITDA of Rs 750-800 crore and 20% volume growth in FY25.

  • Macrotech Developers' Q1FY25 net profit surges by 166.4% YoY to Rs 475.3 crore. Revenue rises by 74.6% YoY to Rs 2,918.3 crore, helped by increased pre-sales and collections. It shows up in a screener of stocks with the highest recovery from their 52-week lows.

  • Hubtown rises as its board approves raising Rs 935 crore by issuing preferential shares to private investors and an additional Rs 275 crore by issuing warrants to promoters.

  • Autoline Industries surges as it secures a Rs 204 crore supply contract with Tata Motors Passenger Vehicle. The contract involves manufacturing tools and supplying sheet metal parts and assemblies, with Rs 147 crore annually for parts and a one-time Rs 57 crore for tooling.

  • Tata Motors enters the top ten most valued global auto firms with a $51 billion market cap, the highest among Indian auto companies. The firm now ranks 10th among the international players. Analysts highlight that easing semiconductor chip challenges for Jaguar Land Rover (JLR) has reduced the order backlog and expanded the order book.

  • Indus Towers' Q1FY25 net profit grows 42.9% YoY to Rs 1,925.9 crore, helped by a Rs 759.7 crore return from allowances for doubtful receivables. Revenue rises by 4.3% YoY to Rs 7,439.4 crore, driven by increased sales. It appears in a screener of undervalued growth stocks.

  • Quality Investment Holdings sells a 12.8% stake (3.3 crore shares) in PNB Housing, worth Rs 2,573.8 crore, in a bulk deal on Tuesday. Meanwhile, Singapore Government entities, Aditya Birla Life MF, and DSP Blackrock MF pick 2.9%, 1.1%, and 0.5% stakes respectively in the company.

  • PDSL rises as ICICI Prudential Mutual Fund buys 10 lakh shares (0.7% stake) at an average price of Rs 554.7 per share in a bulk deal on Tuesday.

  • Saurabh Gupta, CFO of Dixon Technologies, highlights the company’s target to increase the production volume of mobile phones to 28-30 million units in FY25. He says mobile phones provide the largest opportunity, but expects the IT hardware segment to be the next growth driver. Gupta projects revenue of Rs 3,000-4,000 crore from the segment in FY26.

  • Titagrah Rail Systems falls sharply as its revenue falls by 1% YoY to Rs 903.1 crore due to a decline in the passenger rail segment. Net profit grows by 5.5% YoY to Rs 71.3 crore. It appears in a screener of stocks with PE higher than industry PE.

  • GAIL (India) surges to its all-time high of Rs 245.9 per share as its net profit grows by 77.6% YoY to Rs 3,182.9 crore in Q1FY25, helped by lower raw material and inventory costs. Revenue rises 6.2% YoY to Rs 35,042.4 crore, attributed to an increase in the transmission services, natural gas marketing, and city gas segments. It appears in a screener of stocks with an improvement in net cash flow and cash from operating activities.

  • Tata Consumer falls as its Q1FY25 net profit drops 8.3% YoY to Rs 290.3 crore due to a lower share of profits from associates and joint ventures. However, revenue rises 16.3% YoY to Rs 4,352.1 crore during the quarter. The company appears in a screener of stocks where mutual funds increased their shareholding over the past two months.

  • Investec maintains its ‘Buy’ on Angel One with a lower target price of Rs 2,500. The brokerage expects a 30% drop in the number of derivatives orders per client for the company, following the draft guidelines issued by SEBI. It anticipates the firm to increase the price per order to Rs 25 from Rs 20 earlier.

  • Hindustan Zinc is falling as it receives a tax demand worth Rs 1,289.1 crore from the Incom Tax Department following the assessment of its FY21 income.

  • Navin Fluorine falls as its Q1FY25 net profit drops 16.8% YoY to Rs 51.2 crore due to higher inventory cost. Revenue grows 6.6% YoY to Rs 523.7 crore during the quarter but misses Forecaster estimates by 9.1%. The company appears in a screener of stocks with promoter decreasing their shareholding.

  • Torrent Power surges to its all-time high of Rs 1,750 per share as its Q1FY25 net profit grows by 88% YoY to Rs 972.2 crore. Revenue rises by 22.9% YoY to Rs 9,110 crore, driven by improvements in the generation, transmission & distribution, and renewables segments. It features in a screener of stocks with increasing book value over the past two years.

  • Castrol India rises as its Q1FY25 net profit rises 3% YoY to Rs 232.2 crore due to lower inventory costs. Revenue grows 4.8% YoY to Rs 1,397.5 crore during the quarter.  The company appears in a screener of stocks with growth in net profit and profit margin (QoQ).

  • Nifty 50 was trading at 24,898.10 (40.8, 0.2%) , BSE Sensex was trading at 81,655.90 (200.5, 0.3%) while the broader Nifty 500 was trading at 23,489.25 (48.4, 0.2%)

  • Market breadth is ticking up strongly. Of the 1904 stocks traded today, 1339 showed gains, and 526 showed losses.

Riding High:

Largecap and midcap gainers today include Torrent Power Ltd. (1,866.45, 16.6%), Tata Communications Ltd. (1,990.75, 4.4%) and Gland Pharma Ltd. (2,141.60, 4.0%).

Downers:

Largecap and midcap losers today include FSN E-Commerce Ventures Ltd. (192.99, -3.5%), Indus Towers Ltd. (433.15, -3.1%) and Rail Vikas Nigam Ltd. (601.50, -2.1%).

Movers and Shakers

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

Top high volume gainers on BSE included Torrent Power Ltd. (1,866.45, 16.6%), CCL Products India Ltd. (675, 9.8%) and Granules India Ltd. (630.10, 7.0%).

Top high volume losers on BSE were IndiaMART InterMESH Ltd. (2,944.85, -6.6%), Poly Medicure Ltd. (1,871.60, -4.8%) and Birlasoft Ltd. (675.65, -4.8%).

Tanla Platforms Ltd. (993.15, 2.6%) was trading at 10.1 times of weekly average. Suven Pharmaceuticals Ltd. (997.20, 5.6%) and Jubilant Pharmova Ltd. (773.25, 5.3%) were trading with volumes 8.0 and 6.2 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

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

Stocks touching their year highs included - AIA Engineering Ltd. (4,621.35, -0.9%), Ajanta Pharma Ltd. (2,695.10, 6.5%) and Ashok Leyland Ltd. (257.09, 1.4%).

Stock making new 52 weeks lows included - Equitas Small Finance Bank Ltd. (80.77, -1.3%).

7 stocks climbed above their 200 day SMA including Tanla Platforms Ltd. (993.15, 2.6%) and Kansai Nerolac Paints Ltd. (307.20, 0.9%). 4 stocks slipped below their 200 SMA including Birlasoft Ltd. (675.65, -4.8%) and GMM Pfaudler Ltd. (1,444.85, -1.1%).

 
logo
The Baseline
30 Jul 2024
By Satyam Kumar

Capital expenditure (capex) is a key number that investors watch. It tells them how forward-looking a company is, and how invested it is in its future. Such spending is essentially,  a bet on upcoming growth. 

Capex growth forecasts by analysts is thus a useful proxy for future bullishness, and helps justify current valuations. These forecasts tell us which companies are making the biggest bets on expansion and growth. Higher forecasts suggest good financial health, and also indicate the company's confidence and commitment to long-term growth.

In this edition of Chart of the Week, we look at a screener of stocks with high Forecaster capex growth estimates. The bubble chart circles represent the size of capex growth estimates. We also look at the individual sectors poised for high capex growth in the coming year and identify the biggest contributors.

Better-than-expected Q1 results and capex plans for FY25 suggest a turnaround in Software & Services

Happiest Minds and Zensar Tech have the highest capex growth estimates in the software and services sector for FY25

Five of the 25 stocks in our chart belong to the software & services sector. This expansion in the IT sector comes after around two years of slowing growth and disappointing numbers. IT firms reported better-than-expected results in Q1FY25 because of the rise in the number of deal wins. This came after major central banks have already cut or hinted at a probable rate cut i.e. lower borrowing rates starting this year, as inflation comes down in major global economies. 

Happiest Minds Technologies leads with an estimated capex growth of 2,751.9% for FY25, the highest forecast among the Nifty500 stocks. The estimated capex for FY25 is Rs 294 crore compared to Rs 10.3 crore in FY24. This aligns with the aspirations of the company’s Chairman, Ashok Soota, who says that FY25 will be their best year in terms of revenue growth since the IPO.

In Q1FY25, the company acquired PureSoftware and Macmillan Learning and added 1,250 employees. These acquisitions strengthen its presence in key verticals like BFSI, Healthcare, and Education. The company also looks forward to ramp-up orders from the Generative AI segment. It expects to achieve $1 billion in revenue by 2031, driven by organic growth initiatives, strategic acquisitions, and new technology capabilities in Gen AI and bioinformatics.

Zensar Technologies follows with a capex growth estimate of 863%, while Mphasis and Birlasoft are expected to incur capex growth of 406% and 250%, respectively. Another software & services firm, Just Dial started this year on a positive note, with net profit growth of 69.3% YoY to Rs 141 crore in Q1FY25. Trendlyne’s Forecaster expects Just Dial to have an estimated capex of Rs 51 crore in FY25, signifying growth of 273% on a YoY basis. 

Metals & mining sector companies plan to fulfill capex with internal accruals

Maharashtra Seamless has the highest planned capex growth estimates in the mining sector for FY25

In the metals and mining sector, Maharashtra Seamless stands out with the highest capex growth estimate of 1,395% for FY25. The company had taken debt for a Telangana plant and rig acquisition, but prepaid it in full in October ‘22 and June ‘23 respectively through internal accruals. For FY25-26, the company plans to spend over Rs 800 crore from their cash in hand and internal accruals.

Another major player, Jindal Stainless, is expected to grow its capex by 252% in FY25. The company has announced a total expansion capex of around Rs 5,400 crore. They are also partnering with a Singapore entity to set up a 1.2 million tons per annum stainless steel weld shop in Indonesia, where JSL will hold a 49% stake with an outlay of around Rs 700 crore.

Close behind are Lloyds Metals & Energy and Welspun Corp., with capex growth estimates of 245% and 222%, respectively, in FY25. Lloyds Metals has announced plans to remain debt-free even though the company intends to execute a capex of Rs 33,000 crore. The company has delivered a 55%+ return on employed capital in the past two years.

Transportation sector companies are spending heavily to keep up with India’s growth in the coming years

Three transportation sector firms have high planned capex growth for FY25

Forecaster estimates that InterGlobe Aviation (Indigo) will incur a capex of around Rs 15,000 crore, signifying a growth of 1,253% YoY. CEO Pieter Elbers aims to double Indigo’s fleet size by 2030 from around 350 aircraft at present to 600 aircraft. The company plans to add 10 new destinations and approximately 6,000 employees in FY25. It also aims to add one new aircraft per week to expand its domestic and international operations. For this, Indigo placed an order for 500 aircraft with Airbus in June ‘23, setting a new record for the largest aircraft order in the history of commercial aviation.

Another transportation company, JSW Infrastructure, is expected to incur capex growth of 642% in FY25. The company has planned a capex of Rs 2,500 crore in FY25 to expand its cargo handling capacity. Joint MD and CEO, Arun Maheshwari, said, “By 2027, the company anticipates a 50% increase in capacity to 258 million tonnes with an investment of Rs 14,000 crore.” He also highlighted that the company will fund these expansion plans and new projects with internal accruals, leveraging a strong balance sheet with low debt.

Solar EPC firms to gain from India’s plan to lower carbon footprint by 2030

Solar engineering, procurement and construction (EPC) firm Sterling and Wilson Renewable Energy plans to capitalise on India’s target of 500 GW of non-fossil-based energy, aiming to reduce the carbon footprint by 45% by 2030. Reduced solar prices and overcapacity in the Chinese market have also worked in favour of  EPC players in building their captive solar power plants. Forecaster expects Sterling and Wilson’s capex to surge by 1,469% in FY25.

Similarly, battery manufacturer Amara Raja Energy & Mobility is expected to incur capex growth of 284% in FY25. Meanwhile, Forecaster estimates Patanjali Foods and Eris Lifesciences to incur 10x capex costs compared to last year to fund their growth ambitions. 

It is evident that companies have become more cautious about debt-driven spending after enduring a prolonged high-interest rate environment. In the past year, many companies have significantly ramped up their debt repayments to reduce their finance costs. Now, they are taking a more conservative approach and are looking to fund their growth aspirations with the cash they have on hand

 
Trendlyne Marketwatch
Trendlyne Marketwatch
30 Jul 2024
Market closes higher, RVNL wins an order worth Rs 739 crore from the Himachal Pradesh State Electricity Board
By Trendlyne Analysis

Nifty 50 closed at 24,857.30 (21.2, 0.1%) , BSE Sensex closed at 81,455.40 (99.6, 0.1%) while the broader Nifty 500 closed at 23,440.90 (46.7, 0.2%). Market breadth is in the green. Of the 2,183 stocks traded today, 1,276 were on the uptick, and 888 were down.

Indian indices saw a volatile afternoon session but closed in the green. The volatility index, Nifty VIX, fell 0.5% and closed at around 12.9 points. Colgate-Palmolive touched an all-time high of Rs 3,408.9 as its Q1FY25 net profit grew 33% YoY to Rs 364 crore. Revenue rose by 13.6% YoY to Rs 1,520.1 crore during the quarter.

Nifty Midcap 100 and Nifty Smallcap 100 closed in the green. Nifty Realty and Nifty Metal closed higher. According to Trendlyne’s sector dashboard, Forest Materials emerged as the top-performing sector of the day, with a rise of 2.9%.

European indices traded higher, except the UK’s FTSE 100 and Portugal’s PSI, which traded in the red. Asian indices closed lower, except India’s Nifty 50 and Thailand’ SET index which closed in the green. US index futures traded mixed, indicating a cautious start to the trading session. The Federal Reserve will begin its two-day policy meeting later today, and investors will be looking for clues over the timing and number of rate cuts to expect this year.

  • Relative strength index (RSI) indicates that stocks like Infosys, Deepak Fertilisers & Petrochemicals Corp, India Cements, and PI Industries are in the overbought zone.

  • Nifty Oil & Gas hits an all-time high as BPCL and HPCL gain following the Petroleum and Natural Gas Regulatory Board's revision in pipeline tariffs for transporting petroleum products. The new rates are 75% of rail tariffs for petroleum products and 100% for liquefied petroleum gas.

  • Data Patterns falls as its Q1FY25 net profit misses Forecaster estimates by 1.1%, despite rising 26.9% YoY to Rs 32.8 crore. Revenue grows 16% YoY to Rs 104.1 crore during the quarter. The company appears in a screener of stocks with no debt.

  • Shyam Metalics & Energy rises as its net profit grows by 35.3% YoY to Rs 276.1 crore in Q1FY25, helped by inventory destocking. Revenue increases by 8.9% YoY to Rs 3,662.5 crore during the quarter. It features in a screener of stocks near their 52-week highs.

  • Varun Beverages' Q1FY25 revenue rises 28.7% YoY to Rs 7,333.7 crore, beating estimates by 2.3%. Net profit grows 25.5% YoY to Rs 1,261.8 crore during the quarter. It appears in a screener of stocks where mutual funds increased their shareholding in the last quarter.

  • SEBI approves the IPOs for PN Gadgil Jewellers, KRN Heat Exchanger, Ecos India Mobility, and Premier Energies. The funds raised through the initial offerings are allocated for corporate expansions and debt repayment. It also returns the draft prospectus documents of Vishal Mega Mart, NBFC Avanse Financial Services, Sai Life Sciences, and BMW Ventures.

  • Kalpataru Projects falls as its Q1FY25 net profit drops 19.1% YoY to Rs 93 crore due to higher erection, sub-contracting & other project expenses. However, revenue grows 8.1% YoY to Rs 4,587 crore during the quarter, driven by power transmission & distribution and buildings & factories business. The company appears in a screener of stocks where mutual funds increased their shareholding over the past two months.

  • Akums Drugs and Pharmaceuticals' Rs 1,856.7 crore IPO gets bids for 0.8X the available 1.5 crore shares on offer on the first day of bidding. The retail investor quota gets bids for 2.1X the available 27.1 lakh shares on offer.

  • Axis Direct retains its 'Buy' call on ICICI Bank with a higher target price of Rs 1,425 per share. This indicates a potential upside of 16.2%. The brokerage expects increased revenue and profitability in the medium term, backed by strong credit and deposit growth and improving asset quality. It projects the company's net interest income (NII) to grow at a CAGR of 10.3% over FY25-27.

  • Sumant Kathpalia, CEO of IndusInd Bank, highlights Q1FY25 as a stable quarter, despite being a typically weaker period for the bank. He projects a return on assets (ROA) of 1.8% by Q3 and around 1.9-2% by Q4FY25. The bank aims to maintain its liquidity coverage ratio (LCR) above 110%, noting that LCR guidelines will only have a minor impact, remaining in single digits.

  • Maharashtra Seamless falls as its Q1FY25 net profit drops 37.4% YoY to Rs 129.3 crore due to lower sales and higher inventory. Revenue falls 5.8% YoY to Rs 1,151 crore during the quarter. The company features in a screener of stocks where mutual funds increased their shareholding over the past two months.

  • Wonderla Holidays falls sharply as its net profit declines by 25.1% YoY to Rs 63.2 crore in Q1FY25 due to higher raw material and employee benefits expenses. Revenue decreases by 6.7% YoY to Rs 177.5 crore due to reduced footfall. It shows up in a screener of stocks with medium to low Trendlyne momentum scores.

  • Quess Corp rises as its Q1FY25 net profit increases 117.1% YoY to Rs 103.8 crore due to lower material costs. Revenue grows 8.7% YoY to Rs 5,013.3 crore during the quarter. The company appears in a screener of stocks with new 52-week highs today.

  • Company promoters take advantage of the booming markets with a selling spree in Q1FY25. The promoters of India’s top 500 companies have sold shares totaling Rs 61,840 crore, the highest in the past nine months.

  • IdeaForge Technology falls sharply as its net profit declines by 93.8% YoY to Rs 1.2 crore in Q1FY25 due to a sharp increase in raw material costs. Revenue decreases by 8.4% YoY to Rs 92.2 crore. It shows up in a screener of stocks with declining profits from the past two quarters.

  • ACC is falling as its Q1FY25 net profit declines by 22.5% YoY to Rs 361.4 crore due to higher raw material costs. Revenue decreases by 1% YoY to Rs 5,226.6 crore, helped by increased clinker and cement sales. It features in a screener of stocks underperforming their industries in the past quarter.

  • CESC surges as it acquires a 63.9% stake in Purvah Green Power, a wholly-owned subsidiary of Crescent Power, for Rs 205 crore. This acquisition aims to expand CESC's renewable energy business.

  • Ashok Atluri, CMD of Zen Technologies, reiterates the company’s FY25 revenue guidance of Rs 900 crore and export target of Rs 300 crore. He highlights the strong traction of orders in the anti-drone segment, and expects orders to pick up in Q3 and Q4.

  • Jindal Saw surges to its all-time high of Rs 648 per share as its net profit grows by 66.7% YoY to Rs 441.1 crore in Q1FY25. Revenue rises by 12.1% YoY to Rs 4,984.8 crore, driven by increased sales of iron & steel pipes and pellets. It shows up in a screener of stocks with improving cash flow from operations in the past two years.

  • ITD Cementation India receives a contract to construct a residential colony in New Delhi worth approx Rs 1,237 crore.

  • Rail Vikas Nigam wins an order worth Rs 739 crore from the Himachal Pradesh State Electricity Board to develop a distribution infrastructure at the Central Zone of Himachal Pradesh.

  • Nomura maintains its ‘Buy’ rating on KEC International with an upgraded target price of Rs 1,030. The brokerage notes the robust growth and the company’s focus on margins. It expects gross margins to recover starting in Q3FY25, driven by easing supply chain issues and increased contributions from new projects.

  • Tata Steel approves infusing funds in T Steel Holdings by acquiring 557.3 crore shares for $875 million (Rs 7,324.4 crore).

  • Colgate-Palmolive surges to its all-time high of Rs 3,408.9 per share as its net profit grows by 33% YoY to Rs 364 crore in Q1FY25, helped by inventory destocking and lower finance costs. Revenue rises by 13.6% YoY to Rs 1,520.1 crore, driven by improvements in the toothpaste, toothbrush, and personal care segments. It appears in a screener of stocks with negative to positive growth in sales and net profit with strong price momentum.

  • Reports suggest that a 13.1% equity of PNB Housing Finance has changed hands for Rs 2,642 crore in block deals. Carlyle Group's Quality Investment Holdings is the likely seller.

  • Hindustan Petroleum Corp's net profit plunges by 90.6% YoY to Rs 633.9 crore in Q1FY25 due to higher raw material, inventory, and finance costs. However, revenue grows by 1.4% YoY to Rs 1.2 lakh crore, helped by an improvement in the downstream petroleum segment. It features in a screener for stocks where mutual funds reduced their shareholding in the past quarter.

  • Nifty 50 was trading at 24,840.60 (4.5, 0.0%), BSE Sensex was trading at 81,349.28 (-6.6, 0.0%) while the broader Nifty 500 was trading at 23,429.65 (35.5, 0.2%).

  • Market breadth is overwhelmingly positive. Of the 1,954 stocks traded today, 1,432 were on the uptrend, and 489 went down.

Riding High:

Largecap and midcap gainers today include FSN E-Commerce Ventures Ltd. (200.03, 9.4%), Adani Energy Solutions Ltd. (1,124.90, 6.9%) and Suzlon Energy Ltd. (68.22, 5.0%).

Downers:

Largecap and midcap losers today include Varun Beverages Ltd. (1,577.40, -6.4%), Torrent Pharmaceuticals Ltd. (3,111.15, -2.7%) and Godrej Consumer Products Ltd. (1,439.80, -2.6%).

Volume Shockers

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

Top high volume gainers on BSE included PCBL Ltd. (331.95, 10.8%), Computer Age Management Services Ltd. (4,695.05, 9.6%) and Fine Organic Industries Ltd. (5,872.65, 9.4%).

Top high volume losers on BSE were Varun Beverages Ltd. (1,577.40, -6.4%), CSB Bank Ltd. (330.25, -4.2%) and Vardhman Textiles Ltd. (556.65, -2.1%).

Kansai Nerolac Paints Ltd. (304.55, 8.1%) was trading at 20.3 times of weekly average. FSN E-Commerce Ventures Ltd. (200.03, 9.4%) and Trident Ltd. (40.78, 6.8%) were trading with volumes 13.8 and 9.2 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

55 stocks hit their 52 week highs, while 1 stock tanked below their 52 week lows.

Stocks touching their year highs included - Ajanta Pharma Ltd. (2,530.55, 4.6%), Apollo Tyres Ltd. (559.65, 1.4%) and Aurobindo Pharma Ltd. (1,396.10, -0.6%).

Stock making new 52 weeks lows included - Equitas Small Finance Bank Ltd. (81.81, -0.8%).

18 stocks climbed above their 200 day SMA including Kansai Nerolac Paints Ltd. (304.55, 8.1%) and Trident Ltd. (40.78, 6.8%). 4 stocks slipped below their 200 SMA including Westlife Foodworld Ltd. (828.20, -1.1%) and GMM Pfaudler Ltd. (1,461, -0.3%).

 
Trendlyne Marketwatch
Trendlyne Marketwatch
29 Jul 2024
Market closes flat, L&T secures domestic and international orders worth Rs 2,500-5,000 crore
By Trendlyne Analysis

Nifty 50 closed at 24,836.10 (1.3, 0.0%) , BSE Sensex closed at 81,355.84 (23.1, 0.0%) while the broader Nifty 500 closed at 23,394.20 (102.2, 0.4%). Market breadth is in the green. Of the 2,222 stocks traded today, 1,244 were gainers and 948 were losers.

Market closed flat after paring gains in the afternoon session. The Indian volatility index, Nifty VIX, rose by 5.7% and closed at 12.9 points. UltraTech Cement's board approved the acquisition of India Cements by purchasing the promoter's stake, resulting in a majority ownership of 55.5%.

Nifty Midcap 100 and Nifty Smallcap 100 closed in green. Nifty High Beta 50 and BSE Cap Goods were among the top index gainers today. According to Trendlyne’s Sector dashboard, Media emerged as the best-performing sector of the day, with a jump of over 3.4%.

Asian indices closed in green while European indices are trading higher. US index futures traded higher, indicating a positive start to the trading session. This week will focus on central banks, as the Federal Reserve, Bank of England, and Bank of Japan are all set to hold policy meetings. Additionally, major tech earnings announcements will continue, with Microsoft scheduled to report on Tuesday and Meta on Wednesday.

  • Money flow index (MFI) indicates that stocks like United Spirits, Just Dial, Alembic Pharmaceuticals, and Jyothy Labs are in the overbought zone.

  • Cyient DLM rises sharply as it inks a contract with Boeing to produce battery diode modules (BDM) for the 787 Dreamliner.

  • Filatex Fashions rises as its arm, Filatex Mines and Minerals, wins an export order worth $35 million (Rs 293 crore) from Bloom flora Ventures to supply white marble.

  • JSW Energy's wholly owned subsidiary, JSW Neo Energy, secures a letter of intent (LoI) from Gujarat Urja Vikas Nigam to set up a 192 MW hybrid power plant, with an additional 96 MW under the green shoe option.

  • Post-results commentary from several banks indicates most private lenders faced an increase in new bad loans due to seasonal factors worsened by general elections and heat waves, particularly in retail sectors like personal loans and credit cards. Some stress also came from agricultural loans. Despite this, the net profit of nine large private banks rose 26% YoY to Rs 44,308 crore in Q1FY25. However, analysts warn that the upcoming quarter may be challenging.

  • ICICI Bank rises as its net profit grows 10% YoY to Rs 11,695.8 crore in Q1FY25. Revenue increases by 29.2% YoY to Rs 67,270.1 crore, driven by improvements in the retail, treasury, and life insurance segments. Its net interest income rises by 7% YoY, and asset quality weakens as gross and net NPAs rise by 61 bps YoY and 5 bps YoY, respectively.

  • Power Grid Corp of India falls as its net profit misses Forecaster estimates by 11.8%, despite growing by 3.5% YoY to Rs 3,723.9 crore in Q1FY25. However, revenue remains flat at Rs 11,279.6 crore due to a reduction in the transmission business. It shows up in a screener of stocks with declining return on equity (RoE) over the past two years.

  • Larsen & Toubro rises as its power transmission & distribution (PT&D) business secures orders worth Rs 2,500-5,000 crore from India and abroad. The domestic order is for two 765kV transmission line packages in the Jaisalmer/Barmer Renewable Energy Zone, Rajasthan. The foreign orders are to set up substations in Saudi Arabia and the UAE.

  • UltraTech Cement's board approves the acquisition of India Cements by purchasing the promoter's stake, resulting in a majority ownership of 55.5%. The company plans to acquire an additional 33% stake in India Cements from its promoters and associates for Rs 390 per share, totaling an enterprise value of Rs 1,900 crore, subject to regulatory approvals.

  • Sanofi's Q1FY25 revenue falls 35.1% YoY to Rs 468.3 crore and misses Trendlyne's Forecaster estimates by 37.4%. Net profit declines by 16% YoY to Rs 103.2 crore during the quarter. It shows up in a screener of stocks underperforming their industry price change during the quarter.

  • Punjab & Sind Bank rises as its net profit grows by 18.9% YoY to Rs 181.5 crore in Q1FY25, helped by a provision return of Rs 336.1 crore from NPAs. Revenue increases by 14.1% to Rs 2,846 crore on the back of an improvement in the treasury, retail and corporate banking segments. The bank's asset quality improves as its gross and net NPAs decline by 208 bps YoY and 36 bps YoY, respectively.

  • Gensol Engineering rises as it secures an order worth Rs 463 crore for a solar plant at Gujarat's Khavda RE Power Park, involving engineering, design, procurement, installation, testing, and commissioning.

  • Brainbees Solutions, the parent company of FirstCry is set to file a red herring prospectus (RHP) with SEBI this week, say reports. As per the DRHP, the offer includes a fresh issue of around Rs 1,1816 crore and an offer for sale of more than 5.4 crore shares. 

  • Nuvama Wealth Management surges to its all-time high of Rs 6,138 per share as its Q1 net profit grows by 79.6% YoY to Rs 221 crore. Revenue rises by 46.7% YoY to Rs 952.7 crore, attributed to improvements in the wealth management, asset management, and capital markets segments. It appears in a screener of stocks with increasing quarterly revenue for the past eight quarters.

  • NBCC (India) rises as its arm, HSCC (India), wins an order worth Rs 411.5 crore from Medical Education & Ayush Government of Maharashtra to construct a new government medical college of 100 student capacity and 430 bedded Hospital at Buldhana.

  • Bandhan Bank surges more than 10% as its net profit grows 47.5% YoY to Rs 1,063.5 crore in Q1FY25, helped by lower provisions. Revenue rises by 23.5% YoY to Rs 6,063.4 crore, driven by an increase in the retail and wholesale banking segments. The bank's asset quality improves as its gross and net NPAs decline by 253 bps YoY and 103 bps YoY, respectively.

  • Rajan Venkatesan, CFO of Latent View Analytics, highlights the company didn't meet its Q1FY25 guidance due to a delay in finalising some large deals. He adds that margins were impacted due to wage hikes and visa-related expenses. However, he believes margins will improve as revenue grows. For FY25, he projects an organic growth rate of 16-18%, with EBITDA margins at 22-23%.

  • Bharat Heavy Electricals rises as it bags an engineering, procurement & construction (EPC) order worth Rs 10,000 crore from Damodar Valley Corp to set up two 800 MW thermal power stations in Jharkhand.

  • Maruti Suzuki India gets a final assessment order with an income tax demand of Rs 779.2 crore and a show cause notice to initiate penalty proceedings.

  • Cholamandalam Investment & Finance appoints Ravindra Kumar Kundu as the Managing Director, effective October 7, 2024.

  • Ola Electric sets the price band for its IPO at Rs 72-76 per share. The issue, valued at Rs 6,146 crore, consists of a fresh issue worth Rs 5,500 crore and an offer for sale of approx Rs 646 crore. The issue opens on August 6.

  • KEC International is rising as its net profit surges by 106.9% YoY to Rs 87.6 crore in Q1FY25, helped by reduced erection & subcontracting and employee benefits expenses. Revenue grows by 7.3% YoY to Rs 4,555 crore, driven by an improvement in the engineering, procurement & construction (EPC) segment. The company's board also approves raising Rs 4,500 crore through a qualified institutional placement (QIP).

  • City Union Bank's Q1FY25 net profit rises 16.4% YoY to Rs 264.5 crore, while its revenue increases by 8.9% YoY. The bank's board approves raising up to Rs 500 crore capital via a qualified institutional placement.

  • Anamudi Real Estates sells a 4.7% stake in Sobha for approx Rs 857.7 crore in a bulk deal on Friday.

  • InterGlobe Aviation's Q1FY25 net profit beats Forecaster estimates by 28.3%, despite falling by 11.7% YoY to Rs 2,728.8 crore due to higher fuel, aircraft rentals, employee benefits, and finance costs. Revenue grows by 18% YoY to Rs 20,248.9 crore, helped by increased capacity. It features in a screener of stocks with improving cash flow from operations in the past two years.

  • Nifty 50 was trading at 24,941.05 (106.2, 0.4%), BSE Sensex was trading at 81,722.64 (389.9, 0.5%) while the broader Nifty 500 was trading at 23,425.65 (133.6, 0.6%).

  • Market breadth is ticking up strongly. Of the 1,997 stocks traded today, 1,649 were in the positive territory and 315 were negative.

Riding High:

Largecap and midcap gainers today include Bandhan Bank Ltd. (218.87, 13.7%), Rail Vikas Nigam Ltd. (606.30, 9.8%) and Indian Railway Finance Corporation Ltd. (195.27, 6.5%).

Downers:

Largecap and midcap losers today include Jindal Stainless Ltd. (739.45, -3.3%), MphasiS Ltd. (2,931.60, -3.2%) and Macrotech Developers Ltd. (1,361, -3.0%).

Crowd Puller Stocks

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

Top high volume gainers on BSE included Rites Ltd. (759.15, 13.8%), Bandhan Bank Ltd. (218.87, 13.7%) and Kaynes Technology India Ltd. (4,594.15, 8.1%).

Top high volume losers on BSE were Equitas Small Finance Bank Ltd. (82.44, -5.2%), CSB Bank Ltd. (344.55, -3.8%) and Tube Investments of India Ltd. (4,158.55, -0.1%).

FDC Ltd. (529.20, 5.4%) was trading at 12.1 times of weekly average. Adani Wilmar Ltd. (344.60, 6.0%) and Eris Lifesciences Ltd. (1,096.10, 2.1%) were trading with volumes 9.8 and 9.1 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

64 stocks overperformed with 52 week highs,

Stocks touching their year highs included - Alembic Pharmaceuticals Ltd. (1,239.05, 1.9%), Apollo Tyres Ltd. (551.75, 0.3%) and Ashok Leyland Ltd. (256.35, 4.1%).

17 stocks climbed above their 200 day SMA including Bandhan Bank Ltd. (218.87, 13.7%) and Adani Wilmar Ltd. (344.60, 6.0%). 2 stocks slipped below their 200 SMA including Laxmi Organic Industries Ltd. (257.45, -5.2%) and Mankind Pharma Ltd. (2,063, 0.4%).