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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%).

 
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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%).

 
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The Baseline
26 Jul 2024
Five Interesting Stocks Today - July 26, 2024

1. Titan Company:

This jewellery company jumped 6.5% on Budget day, following Finance Minister Nirmala Sitharaman's proposal to lower customs duty on precious metals like gold, silver, and platinum. She proposed cutting the customs duty on gold and silver to 6% from 15%, and reducing the customs duty on platinum to 6.4% from 15.4%.

Analysts expect the recent drop in gold prices to spark demand for gold jewellery in the coming quarter, boosted by the upcoming wedding season. Jewellers have reported a rise in daily demand, with some experiencing a surge of up to 20% since the duty reduction. Titan’s jewellery segment has already seen double-digit growth in the number of buyers in FY24.  On a consolidated basis, the company reported revenue growth of 26.3% YoY to Rs 51,617 crore in FY24, with net profit of Rs 3,496 crore, up 7.6% YoY.

In the Q1FY25 business update, the company said that standalone sales grew 9% on a YoY basis. Its jewellery segment, which contributes over 85% to the total revenue, added 34 stores during the quarter, taking the total count to 699. The watches and wearables segment outperformed other segments in terms of sales growth, with a 15% rise on a YoY basis.

Ajoy Chawla, CEO of the jewellery division at Titan, said, “Q1 is likely to be a little bit more stressed because of the absence of wedding dates and the elections, and the elevated gold prices during April to June period”. However, he expects the second half of the year to be much better compared to the first half.

Motilal Oswal maintains a ‘Buy’ rating on Titan given its growth outlook driven by new store additions, attractive designs, and market share gains. With a target price of Rs 4,100, Titan has a potential upside of 17.3%.

2. United Spirits:

This breweries & distilleries company has risen 8.9% in the past week, reaching an all-time high of Rs 1,450 on Thursday. The surge came after the Andhra Pradesh government announced it would resume buying liquor from top brands, boosting shares of major alcohol companies.

In Q1FY25, United Spirits' profit rose 1.7% YoY to Rs 485 crore, while its revenue increased by 7.6% YoY to Rs 6,273 crore, driven by strong performance in the beverage alcohol segment. EBITDA margin grew by 174 bps YoY to 19.5%. The company appears in a screener of stocks outperforming their respective industry over the past year.

During the quarter, the company saw strong consumer demand for its premium offerings, including the successful launch of McDowell's X-series, which are new beverages targeted at mid-to-upper consumer segments. The firm also acquired stakes in specialty beverage firms like V9 Beverages and Indie Brews, expanding into zero alcohol and premium craft segments.

United Spirits projects a volume growth of 4-5% and aims for a price mix improvement in the premium and above segments. The company’s CFO and Executive Director, Pradeep Jain said, “We project volume growth in the range of 4-5% and a price mix improvement of 6-8% on a full-year basis.” He also highlighted that the company aims to maintain its 'Prestige and Above’ (P&A) segment revenue growth rate in double digits.

Post Q1FY25 results, Edelweiss has upgraded the stock to ‘Buy’, with a higher target price of Rs 1,630. The brokerage remains positive on the company's expansion into new premium categories like tequila and craft spirits. However, the firm is in the PE Sell Zone, currently trading above its historical PE.

3. Newgen Software Technologies:

This IT consulting & software company fell 2.2% on July 18 as its net profit plunged 54.8% QoQ to Rs 47.6 crore in Q1FY25 due to higher employee benefits and other expenses. Revenue declined by 16.1% QoQ to Rs 314.7 crore, caused by weakness in key geographies. The company’s revenue missed Trendlyne’s Forecaster estimates by 1.3%. EBITDA margins contracted 17.6 percentage points to 15.1% in the same period. 

During the quarter, the company’s India and e EMEA (Europe, Middle East and Africa) markets, both of which separately contribute around one-third of the revenue pie saw revenues fall by 23% and 32% QoQ respectively. In contrast, the APAC (Asia Pacific excluding India) and USA markets grew by 23.5% QoQ and 10.5% QoQ, respectively. 

Q1 is typically a weak quarter for IT companies. But this year the bigwigs in the industry reported a decent first quarter, and highlighted green shoots in the banking, financial services, and insurance (BFSI) space. However, for Newgen, the banking segment saw a decline of 17.3% QoQ.  The products and platforms business also declined 41.3% QoQ, resulting in weak quarterly performance.

Meanwhile, Newgen continued to seetraction from its existing and new clients in Q1 and added 13 new clients during the quarter. It secured significant orders from banks in Indonesia, Malaysia, and Qatar. In Q1, Newgen also launched a new product, Newgen LumYn, a Gen AI-powered platform designed  for the banking sector. 

During FY24, revenue was up 27.7% YoY to Rs 1,243.8 crore, while net profit grew by 42.7% YoY. Speaking on the outlook, Virender Jeet, the CEO said, “We would like to keep the historical momentum of over 25% annual topline growth going forward, led by deal wins. We expect around 20% PAT growth and 23-24% EBITDA margins in FY25.”  

Over the past week, Newgen Software rose by 5%, outperforming its industry by 3%. However,  it has surged by 158.6% in the past year. The company is in the PE Strong Sell Zone, and is currently trading above its historical PE. 

Post Newgen’s results, ICICI Securities maintains its ‘Hold’ rating with a target price of Rs 1,010. The brokerage notes the strong traction in lending, trade finance, and supply chain financing solutions. It believes 25% plus growth could sustain in the near term.

4. Gravita India:

This lead & aluminium metals company rose by 21.7% over the past week and announced its results on Monday. For Q1FY25, the company’s net profit increased by 29.3% YoY to Rs 67.3 crore, while its revenue rose by 25.9% YoY due to a rise of 42.6% YoY in lead segment revenue. The firm beat Trendlyne’s Forecaster estimates for revenue by 7.5% and for net profit by 11.3%. The stock shows up in a screener for stocks with strong momentum.

The company’s lead and plastics segment were the revenue drivers in Q1FY25. Lead volumes rose by 43% YoY to 41.9kt, while plastics volumes rose by 18% YoY to 3.2kt. EBITDA per tonne for lead stood at Rs 19,321  and for aluminum it stood at Rs 19,414. The management has upped its lead EBITDA/kg guidance, from Rs 17-18/kg to Rs 18-19/kg for FY25.

Yogesh Malhotra, CEO of the firm, said that the company is expecting the launch of the aluminum alloy commodity derivative on MCX shortly. He notes that this development would play a crucial role in managing price volatility risks. He added, “We are setting up a pilot project for lithium-ion recycling and our first Indian tire recycling plant at Mundra, both of which are expected to be operational in H1FY26. The paper recycling plant and steel recycling plants are anticipated to be operational by FY27.”  On MCX, aluminum prices are seeing a decline amid concerns over China’s lack of new stimulus. Lead prices have also remained flat. However, analysts predict that global lead production is expected to grow by 4.3% to more than 4.7 million tonnes in 2024. The increase will mainly be fuelled by rising output from key producers such as Australia, the US, and Russia.

The company under its “Vision 2028” has placed  targets of revenue CAGR of >25% and  PAT CAGR of >35%, and aims to increase the proportion of  value added products (VAP) to 50% by entering new verticals. Gravita expects earnings to reach Rs 750-800 crore by 2028. 

According to a report by Avendus Capital, the domestic battery recycling market is expected to grow to Rs 8,371.8 crore by FY30. The company has plans to invest Rs 70-100 crore in the Li-ion vertical, over the next 3 years to grab the opportunity.

Emkay has given a “Buy” rating on Gravita India, with a target price of Rs 1,650. The brokerage has raised its target multiple to 25x, from 23x earlier, thanks to implementation of regulatory norms and a strong outlook from diversification into new verticals.

5. Indian Hotels Company:

This hotels company rose by 11.1% in the past week after announcing positive Q1FY25 results on Friday. The company reported net profit growth of 11.7% YoY to Rs 248.4 crore, while its revenue improved by 5.3% YoY to Rs 1,596.3 crore. However, it missed Trendlyne Forecaster’s net profit estimate by 4.4%. The company also appears in the screener for stocks outperforming their respective industry over the past quarter.

Revenue growth was slower compared to growth in Q4FY24 (18% YoY) as extreme heat waves and elections impacted occupancy. However, its EBITDA margin expanded by 103 bps YoY to 29% due to better operating efficiencies. The firm’s revenue per available room for Q1FY25 stood at Rs 6,900, outperforming its industry and competition with a premium of 60%.

Indian Hotels has opened six hotels in Q1FY25 and one new hotel in July 2024, and it has guided to open 25 new hotels in FY25. At present, the company's portfolio of hotels stands at 224 operational hotels with 102 new hotels in the pipeline. Speaking about growth, Managing Director Puneet Chhatwal said, “We expect a 20% plus revenue growth with sustained margins in FY25. We remain confident that we will deliver on our guidance, backed by diversified revenue growth and tailwinds for the industry.” The management expects the new businesses (Ginger, Qmin, amã Stays & Trails) to accelerate growth to 30%, and a focus on asset management should drive profitability.

Axis Securities maintains a ‘Buy’ call on Indian Hotels Company as it expects the hospitality industry upcycle to be long and sustained. Additionally, it believes upcoming events such as the Women's World Cup hockey and kabaddi championships could improve occupancies.

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
26 Jul 2024
Market closes higher, SJVN secures an order worth Rs 13,947.5 crore from Government of Mizoram
By Trendlyne Analysis

Nifty 50 closed at 24,834.85 (428.8, 1.8%) , BSE Sensex closed at 81,332.72 (1,292.9, 1.6%) while the broader Nifty 500 closed at 23,292.05 (374.8, 1.6%). Market breadth is surging up. Of the 2,168 stocks traded today, 1,482 were on the uptrend, and 663 went down.

Markets closed higher after rising throughout the day. The Indian volatility index, Nifty VIX, fell 2.9% and closed at 12.2 points. SJVN secured a Rs 13,947.5 crore contract from the Government of Mizoram to build a 2,400 MW pumped storage project at Darzo Nallah.

Nifty Smallcap 100 and Nifty Midcap 100 closed in the green, taking cues from the benchmark index. BSE Metal and S&P BSE Telecom were among the top index gainers today. According to Trendlyne’s Sector dashboard, Telecom Services emerged as the best-performing sector of the day, with a rise of 4.1%.

Asian indices closed in the green except Nikkei 225, CSE All-Share and KLCI. European indices are trading in the green except Portugal's PSI and Spain’s IBEX 25 which are trading in the red. US index futures are trading in the green, indicating a positive start to the trading session. Brent crude oil futures are trading lower.

  • Relative strength index (RSI) indicates that stocks like Infosys, Tata Teleservices (Maharashtra), India Cements, and United Spirits are in the overbought zone.

  • BL Kashyap surges to hit an all-time high of Rs 111 as it secures an order worth Rs 160 crore from Suruchi Properties for civil, structural and allied works of residential building at Kodihalli, Bengaluru, to be completed in 20 months.

  • United Breweries' Q1FY25 revenue rises 8.6% YoY to Rs 2,482.5 crore, driven by strong performance in the beer segment. Net profit increases 27.4% YoY to Rs 173.6 crore. It appears in a screener of stocks where mutual funds increased their shareholding in the last quarter.

  • Hardware technology & equipment, software & services, food beverages & tobacco, and pharmaceuticals & biotechnology sectors rise more than 10% in the past month.

  • Foreign institutional investors invest Rs 5,114 crore in the equity market over the past week, according to Trendlyne's FII dashboard. Index options witness the highest inflow of Rs 74,981.3 crore from foreign investors. Meanwhile, mutual funds are net sellers in the equity market, pulling out Rs 1,050.6 crore during the same period.

  • Brokerages predict InterGlobe Aviation's net profit to drop by 28-49% YoY in Q1FY25, owing to higher operating costs and slower revenue growth. Elara Securities forecasts a 28.2% decrease in adjusted net profit to Rs 2,135 crore, attributing this to higher employee expenses and lease costs.

  • Tata Power rises as its subsidiary, Tata Power Solar, partners with Bank of India to provide easy and affordable financing for the installation of rooftop solar and EV charging stations.

  • Sun Pharmaceutical hits an all-time high of Rs 1,712 as it gets US FDA approval for LEQSELVI (deuruxolitinib), an oral JAK inhibitor used for the treatment of severe autoimmune disease alopecia areata in adults.

  • Texmaco Rail & Engineering to acquire rail wagon manufacturer Jindal Rail Infrastructure for Rs 615 crore. This acquisition aims to establish leadership in specialized freight rolling stock, create new product opportunities, enhance the company’s presence in Western India, and boost exports.

  • SEBI has instructed the National Stock Exchange (NSE) to review the related party transactions between Linde India and Praxair India Pvt (PIPL). This action follows shareholder complaints claiming that these transactions, including the transfer of the hydrogen carbon oxidation business to PIPL, occurred without proper approval.

  • Pharma stocks like Divi's Laboratories, Laurus Labs, Biocon, and Ipca Laboratories are rising in trade. The broader sectoral index, Nifty Pharma, hits all-time high of 21,519.8.

  • Mahanagar Gas rises as its Q1FY25 net profit of Rs 288.8 crore beats Forecaster estimates by 13%, despite falling by 21.6% YoY. Revenue declines 9.9% YoY to Rs 1,665.8 crore during the same period. The company appears in a screener of stocks near their 52-week highs.

  • SpiceJet rises as the Supreme Court rejects former promoter Kalanithi Maran's plea challenging the Delhi High Court's 2018 arbitral award of Rs 578 crore.

  • Jupiter Wagons' Q1FY25 net profit surges by 46.2% YoY to Rs 91.9 crore, helped by inventory destocking. Revenue grows by 17.5% YoY to Rs 887.7 crore, driven by strong order wins. It appears in a screener of stocks with improving book value over the past two years.

  • Sobha falls sharply after 47.4 lakh shares (5% stake), amounting to Rs 865 crore, reportedly change hands in a block deal. Anamudi Real Estate is the likely seller in the transaction.

  • MphasiS surges to a new 52-week high of Rs 3,047.1 per share as its net profit grows by 2.9% QoQ to Rs 404.5 crore in Q1FY25, helped by a reduction in employee benefits and finance costs. Revenue rises marginally by 0.6% QoQ to Rs 3,496 crore, driven by an improvement in the banking & financial services, logistics & transportation, technology media & telecom, and insurance segments. It features in a screener of stocks outperforming their industries over the past quarter.

  • Morgan Stanley downgrades Cyient to "Underweight" with a reduced target price of Rs 1,550, as it misses Q1FY25 earnings estimates. The brokerage expresses caution over the revised revenue guidance due to high ask rates and weak historical performance. It projects an EPS CAGR of 1.6% for FY24-26.

  • Chalet Hotels to acquire 11-acre land parcel in Goa for Rs 137 crore from Shiva Goa Palace to develop a five-star luxury hotel.

  • Cyient plunges more than 7% as its net profit declines by 23.9% QoQ to Rs 143.9 crore in Q1FY25. Revenue falls by 9.9% QoQ to Rs 1,696.8 crore due to a decrease in the digital, engineering & technology (DET) and design led manufacturing (DEL) segments. It shows up in a screener of stocks underperforming their industries in the past quarter.

  • Sanstar's shares debut on the bourses at a 14.7% premium to the issue price of Rs 95. The Rs 510.1 crore IPO received bids for 83 times the total shares on offer.

  • Hero MotoCorp secures a favorable ruling from the Income Tax Appellate Tribunal (ITAT), which overturns an income tax demand of Rs 2,336.7 crore for AY12 related to Hero's joint venture with Honda, terminated in 2010. The company also received separate tax demand notices totaling approximately Rs 605 crore, including interest, for Assessment Years (AY) 2013-14 through AY 2017-18 and FY19-20 from the income tax department.

  • Sterling and Wilson Renewable Energy wins two orders worth Rs 328 crore. The orders include development of standalone BESS plant in Rajasthan and a 20 MW floating solar project in Karnataka.

  • Indus Towers rises as it considers a proposal for the buyback of fully paid-up equity shares. The board will meet on July 30 to discuss the proposal.

  • SJVN surges as it bags an order worth Rs 13,947.5 crore from the Government of Mizoram to set up a 2,400 MW pumped storage project across the Darzo Nallah.

  • Tech Mahindra falls sharply as its revenue in Q1FY25 declines by 0.7% QoQ to Rs 13,150.2 crore due to a decrease in the IT segment. However, net profit rises by 28.8% QoQ to Rs 851.5 crore, helped by a reduction in subcontracting expenses. The company appears in a screener of stocks with declining return on equity (RoE) over the past two years.

  • Nifty 50 was trading at 24,467.45 (61.4, 0.3%), BSE Sensex was trading at 80,158.50 (118.7, 0.2%) while the broader Nifty 500 was trading at 23,003.60 (86.4, 0.4%)

  • Of the 1,906 stocks traded today, 1,505 showed gains, and 371 showed losses.

Riding High:

Largecap and midcap gainers today include General Insurance Corporation of India (410.50, 10.3%), One97 Communications Ltd. (509.05, 10.0%) and Shriram Finance Ltd. (2,925, 9.2%).

Downers:

Largecap and midcap losers today include Mankind Pharma Ltd. (2,055.90, -4.1%), Rail Vikas Nigam Ltd. (552.35, -4.1%) and United Breweries Ltd. (2,037, -3.4%).

Volume Shockers

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

Top high volume gainers on BSE included The New India Assurance Company Ltd. (291.73, 12.9%), General Insurance Corporation of India (410.50, 10.3%) and Infibeam Avenues Ltd. (31.36, 9.3%).

Top high volume losers on BSE were BASF India Ltd. (5,793.15, -6.2%), Cyient Ltd. (1,789.90, -5.5%) and Route Mobile Ltd. (1,642.30, -5.0%).

Home First Finance Company India Ltd. (1,061.50, 3.1%) was trading at 9.7 times of weekly average. Adani Energy Solutions Ltd. (1,051.95, 0.2%) and Equitas Small Finance Bank Ltd. (86.96, -1.9%) were trading with volumes 7.9 and 7.6 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

54 stocks overperformed with 52 week highs,

Stocks touching their year highs included - Alembic Pharmaceuticals Ltd. (1,216.35, 1.3%), Apollo Tyres Ltd. (550.40, 2.5%) and Ashok Leyland Ltd. (246.38, 6%).

15 stocks climbed above their 200 day SMA including Infibeam Avenues Ltd. (31.36, 9.3%) and Network18 Media & Investments Ltd. (91.59, 8.6%). 7 stocks slipped below their 200 SMA including Mankind Pharma Ltd. (2,055.90, -4.1%) and SBI Cards and Payment Services Ltd. (721.70, -1.2%).

 
Trendlyne Marketwatch
Trendlyne Marketwatch
25 Jul 2024
Market closes flat, RVNL bags an order worth Rs 191.5 crore from South Eastern Railway
By Trendlyne Analysis

Nifty 50 closed at 24,406.10 (-7.4, 0.0%) , BSE Sensex closed at 80,039.80 (-109.1, -0.1%) while the broader Nifty 500 closed at 22,917.25 (-4.2, 0.0%). Market breadth is holding steady. Of the 2,167 stocks traded today, 1,103 were gainers and 1,048 were losers.

Indian indices pared losses in the afternoon session and closed flat. The volatility index, Nifty VIX, rose 7.3% and closed at 12.6 points. Jindal Steel & Power fell sharply as its net profit declined 20.6% YoY to Rs 1,340.2 crore in Q1FY25 due to higher raw material, employee benefits, and finance costs. However, revenue grew 8% YoY to Rs 13,652.3 crore, driven by higher crude steel sales.

Nifty Smallcap 100 and Nifty Midcap 100 closed lower. Nifty Oil & Gas and Nifty Energy closed in the green. According to Trendlyne’s Sector dashboard, Hardware Technology & Equipment emerged as the top-performing sector of the day, with a rise of 1.7%.

Fresh concerns about US GDP growth, and earnings misses this quarter have caused a selloff across global markets. Most Asian indices closed lower, except Sri Lanks’s CSE All-Share index, which closed in the green. European indices traded lower amid weak global cues. US index futures traded lower, indicating a cautious start to the trading session. Ford Motor fell in the pre-opening market as it posted an earnings per share of 47 cents in Q2, 30.9% lower than estimates. However, the company’s automotive revenue stands at $44.8 billion, beating estimates by 1.8%.

  • Money flow index (MFI) indicates that stocks like Avanti Feeds, Just Dial, ITC, and Torrent Pharmaceuticals are in the overbought zone.

  • Indraprastha Gas falls as its Q1FY25 net profit declines 7.8% YoY to Rs 481.2 crore due to higher stock purchases. Revenue grows 3.3% YoY to Rs 3,520.6 crore during the quarter. The company features in a screener of stocks where mutual funds increased their shareholding over the past two months.

  • Canara Bank's Q1FY25 revenue increases by 14.1% YoY to Rs 34,020.2 crore, driven by growth in gross advances and global deposits. Net profit rises 10.5% YoY to Rs 3,905.3 crore, helped by lower provisions. The bank's asset quality also improves, with gross and net NPAs declining by 101 bps and 33 bps YoY, respectively.

  • BOB Capital retains its 'Buy' call on Hindustan Unilever with a higher target price of Rs 3,349 per share. This indicates a potential upside of 24.1%. The brokerage anticipates revenue growth driven by a good monsoon, improved agricultural yield, and rural recovery. It expects the company's revenue to grow at a CAGR of 5.7% over FY25-26.

  • ICICI Bank is set to announce its Q1FY25 results on Saturday. Analysts anticipate a 10-12% YoY growth in net profit for the quarter. However, concerns remain as they warn about potential margin pressures due to elevated credit costs, which could exceed the industry average.

  • Indian Energy Exchange's Q1FY25 net profit increases 27.2% YoY to Rs 96.4 crore. Revenue grows 18.8% YoY to Rs 123.6 crore due to higher electricity demand and coal production. The company features in a screener of stocks with no debt.

  • Rites wins an order worth Rs 321.3 crore from the Directorate of Medical Education & Research for project management consultancy on a turnkey basis to construct a new government medical college in Amravati, Maharashtra.

  • JK Paper falls sharply as its Q1FY25 net profit plunges by 54.7% YoY to Rs 139.7 crore due to higher raw materials and employee benefits expenses. However, revenue grows by 6.3% YoY to Rs 1,742.7 crore, helped by an increase in the paper & packaging segment. It features in a screener of stocks with decreasing revenue, profits, and operating profit margin (QoQ).

  • Akum Drugs sets the price band for its IPO at Rs 646-679 per share. The issue, valued at Rs 1,855 crore, consists of a fresh issue worth Rs 680 crore and an offer for sale of around Rs 1,175 crore. The issue opens on July 30.

  • CG Power and Industrial Solutions rises sharply as its Q1FY25 net profit increases 18.4% YoY to Rs 241.1 crore. Revenue grows 18.8% YoY to Rs 2,227.5 crore due to increased sales in the power systems and industrial systems segments. The company features in a screener of stocks with no debt.

  • Infra Engineering wins an order worth Rs 763.1 crore from the Ministry of Road Transport and Highways for improving and upgrading a two-lane stretch with paved shoulders configuration of the Bahuvan Madar Majha to Jagarnathpur section.

  • Nestle India is falling as its Q1FY25 revenue misses Forecaster estimates by 4.9%, despite growing 3.6% YoY to Rs 4,853.1 crore. Net profit rises by 6.9% YoY to Rs 746.6 crore during the quarter. It shows up in a screener of stocks where mutual funds decreased their shareholding in the last quarter.

  • Nomura upgrades Tata Motors to 'Buy' with a higher target price of Rs 1,294. The brokerage sees significant upside potential from Jaguar Land Rover's (JLR) operational improvements and separation of commercial vehicles from passenger vehicles. It expects margins to rise from 7.8% in FY25 to 8.5% by FY27 and potentially reach 11-12% by FY30, driven by the transition from internal combustion engines (ICE) to new electric vehicles.

  • State Bank of India (SBI) signs a non-binding memorandum of understanding (MoU) with the Foreign, Commonwealth & Development Office (FCDO), UK for £750 million (approx. Rs 8,093 crore). Both FCDO and SBI will invest £375 million (approx. Rs 4,046 crore) each over an agreed timeline.

  • Jyothy Labs surges more than 7% as its Q1FY25 net profit grows by 5.6% YoY to Rs 101.7 crore, helped by a reduction in inventory costs. Revenue rises 7.3% YoY to Rs 755.5 crore, driven by increased sales from the fabric care, dishwashing, household insecticides, and personal care segments. It appears in a screener of stocks with improving return on equity (RoE) over the past two years.

  • Craftsman Automation falls sharply as its net profit declines by 28.6% YoY to Rs 53.2 crore in Q1FY25 due to higher inventory, employee benefits, finance, and sales & services costs. However, its revenue increases by 11% YoY to Rs 1,156 crore, driven by an increase in the powertrain, aluminium products, and industrial & engineering segments. The company shows up in a screener of stocks with declining net profit for the past three quarters.

  • Sachin Tikekar, President and Joint MD of KPIT Technologies, expects growth to revive in the US in H2FY25. Post-recovery, he anticipates the US business to gradually reach $50 million per quarter. Tikekar highlights that most of its business in Asia comes from Japan, but the company has started to diversify into China as well.

  • Rail Vikas Nigam wins an order worth Rs 191.5 crore from South Eastern Railway to develop a 132 KV traction substation, sectioning post, and a sub-sectioning post on the Rajkhaswan-Nayagarh-Bolani section.

  • PG Electroplast surges to its all-time high of Rs 464 per share as its Q1FY25 net profit grows by 147.6% YoY to Rs 83.7 crore. Revenue increases by 95.1% YoY to Rs1,324.6 crore, attributed to a rise in sales in the washing machines and TV & electronics segments. It features in a screener of stocks with improving cash flow from operations in the past two years.

  • Axis Bank falls sharply as its Q1FY25 net profit misses Forecaster estimates by 0.4%, despite growing by 4.1% YoY to Rs 6,034.6 crore. Revenue rises by 17% YoY to Rs 35,844.2 crore, driven by an increase in the treasury, corporate, and retail banking segments. The bank's asset quality improves as its gross and net NPAs decline by 42 bps YoY and 7 bps YoY, respectively.

  • Macquarie initiates an ‘Outperform’ rating on Polycab India with a target price of Rs 7,576. The brokerage notes strong demand in the cable & wire (C&W) business across domestic and overseas markets. It also believes the worst is over for the FMEG space and sees growth driven by a focus on premium products and branding, as well as in house manufacturing.

  • Radhakishan Damani sells a 1.7% stake in VST Industries for approx Rs 107.8 crore in a bulk deal on Wednesday.

  • Jindal Steel & Power falls sharply as its net profit declines 20.6% YoY to Rs 1,340.2 crore in Q1FY25 due to higher raw material, employee benefits, and finance costs. However, revenue grows 8% YoY to Rs 13,652.3 crore, driven by higher crude steel sales. It appears in a screener of stocks with high promoter pledges.

  • RBL Bank is falling as Baring Private Equity Asia reportedly plans to divest its entire 7.9% stake worth Rs 1,081 crore.

  • Larsen & Toubro's net profit rises 11.7% YoY to Rs 2,785.72 crore in Q1FY25. Revenue increases by 14.3% YoY during the quarter, driven by the infrastructure projects segment. The company appears in a screener for stocks with increasing mutual fund shareholding in the past month.

  • Markets fell in early trading. Nifty 50 was trading at 24,235.85 (-177.7, -0.7%), BSE Sensex was trading at 79,641.96 (-506.9, -0.6%) while the broader Nifty 500 was trading at 22,783.45 (-138, -0.6%)

  • Market breadth is in the red. Of the 1,926 stocks traded today, 735 were gainers and 1,150 were losers.

Riding High:

Largecap and midcap gainers today include Tata Motors Limited (DVR) (747.25, 6.4%), Tata Motors Ltd. (1,090.95, 6.2%) and Adani Green Energy Ltd. (1,820.50, 6.1%).

Downers:

Largecap and midcap losers today include Axis Bank Ltd. (1,175.90, -5.1%), Indian Railway Finance Corporation Ltd. (183.56, -4.5%) and Au Small Finance Bank Ltd. (631.65, -4.2%).

Crowd Puller Stocks

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

Top high volume gainers on BSE included MMTC Ltd. (120.91, 17.9%), Data Patterns (India) Ltd. (3,393.95, 10.0%) and Jyothy Labs Ltd. (547.70, 7.8%).

Top high volume losers on BSE were Axis Bank Ltd. (1,175.90, -5.1%), RBL Bank Ltd. (230.20, -3.3%) and Nestle India Ltd. (2,480.65, -2.4%).

Mahindra Holidays & Resorts India Ltd. (477.15, 2.2%) was trading at 9.6 times of weekly average. Godfrey Phillips India Ltd. (4,294.45, 2.8%) and Vaibhav Global Ltd. (334.25, 4.4%) were trading with volumes 8.4 and 6.9 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

36 stocks hit their 52 week highs,

Stocks touching their year highs included - Alembic Pharmaceuticals Ltd. (1,200.95, 2.2%), BASF India Ltd. (6,172.95, 4.7%) and Zydus Lifesciences Ltd. (1,205.80, 2.2%).

14 stocks climbed above their 200 day SMA including Jai Balaji Industries Ltd. (903.05, 5%) and Kama Holdings Ltd. (2,793.20, 2.8%). 14 stocks slipped below their 200 SMA including Westlife Foodworld Ltd. (833, -2.8%) and Nestle India Ltd. (2,480.65, -2.4%).

 
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The Baseline
24 Jul 2024
By Satyam Kumar

The FY25 Budget marked a volatile day for Indian equity markets. All major indices nosedived after Finance Minister Nirmala Sitharaman, in her Budget speech, proposed increasing taxes on stock market gains. Long-term capital gains will now attract a tax of 12.5% compared to 10% earlier, while short-term capital gains tax was raised from 15% to 20%. Taxes were also hiked on F&O transactions.

Meanwhile, Sitharaman proposed reducing the corporate tax rate on foreign companies from 40% to 35% to become the top alternative in the “China plus one” strategy, and attract foreign capital. 

Post-elections, the Indian equity markets in June and the first fortnight of July witnessed a total inflow of Rs 47,284 crore in equities. Before that, Foreign Portfolio Investors (FPIs) had withdrawn Rs 34,286 crore in April and May due to poll jitters and concerns over sticky inflation. Since then, a better-than-expected earnings season has helped build investor confidence and attract FPIs back to Indian equity markets.

In this week’s Chart of the Week, we take a look at sectors with the highest FPI activity over the past year. FPIs consistently poured money into capital goods companies, with a total inflow of Rs 47,422 crore. The consumer services sector was the second favourite among FPIs, attracting a net investment of Rs 36,570 crore. 

The financial services sector, on the other hand, witnessed the highest FPI outflow of Rs 35,066 crore in the past year. The sector has recently underperformed due to high borrowing rates, resulting in lower net interest margins as advance growth outpaced deposit growth over the past year.

Capital goods, consumer services and telecom emerge as FPI favourites

More than half of the total investment of around Rs 2 lakh crore by FPIs went into capital goods, consumer services and telecom sectors. Capital goods companies have benefited from a robust order backlog and a steady inflow of fresh orders. This growth was supported by stable commodity prices and increased government infrastructure spending, as well as production-linked incentive (PLI) schemes. The “China plus one” strategy has also helped the order surge.

The consumer services sector ranked second in FPI interest, with net positive inflows even during highly volatile months leading up to the election. Higher discretionary spending over the past year has boosted investor confidence in the sector. The telecom sector caught the attention of FPIs, attracting investments worth Rs 28,461 crore, with over 90% of the total investment coming in the last five months. The recent tariff hike by telecom companies is expected to drive growth in average revenue per user and expand their net profit margins in the coming quarters. 

IT sector is gaining traction post surprise outperformance in Q1 results

The information technology sector also saw a notable shift, with FPIs turning net buyers and investing Rs 2,765 crore from July 1 to 15. This was a reversal from the net selling of Rs 981 crore observed in June. The IT sector showed early signs of recovery in their Q1FY25 results, driven by opportunities in the GenAI segment and potential rate cuts in the US in September. This recovery could boost orders from the BFSI segment, which constitutes around 50% of revenue for IT companies.

Similarly, the auto sector has also seen net FPI inflows post-elections. With expectations of a good monsoon this year, analysts are predicting a volume uptick in the sales of two-wheelers and three-wheelers. The EV sector, however, received no direct subsidies or announcements in the Union Budget for FY25.

Healthcare and FMCG sectors witness turnaround post elections

The healthcare sector, comprising the pharma and hospital industries, witnessed an inflow of Rs 14,822 crore over the past year. Analysts expect the pharma industry to deliver earnings growth driven by better product mix, and improved margins. Over the past year, hospitals saw growth in average revenue per occupied bed, alongside steady capacity additions, leading to higher net income and revenue visibility.

The FMCG sector, on the other hand, has seen net outflows of over Rs 20,000 crore in the past year. However, during the first July fortnight (i.e. first half of the month), the sector saw a net inflow of Rs 1,809 crore. This turnaround for FMCG came as reports surfaced of a recovery in rural demand in recent months. Tobacco company ITC rallied after the government, in the 2024 Budget, decided to maintain the current tax rates on cigarette and tobacco products, which contributed around 75% to its profit before taxes as of Q4FY24.

Stocks that have seen the highest increase in FII holdings in the past quarter

Banks & telecom sector stocks witness a sharp rise in FII holdings

The above chart represents the top eight Nifty500 stocks that saw the highest jump in FII holdings in terms of percentage points on a QoQ basis. You can take a look at all the stocks where FIIs have increased their shareholding in the past quarter in the “FII/FPI increasing their shareholding” screener. 

Telecom company Vodafone Idea (VI) has seen its share price surge from Rs 13 at the time of FPO to Rs 19 in the past month, following a fundraise of Rs 18,000 crore through the FPO. The company plans to use the proceeds for 5G expansion and to clear dues of around Rs 10,000 crore to the tower company Indus Towers. FPIs have significantly increased their shareholding in both companies in the past quarter.

Meanwhile, FPIs have also increased their stake in Ujjivan Small Finance Bank and CSB Bank by 21.2 and 7.4 percentage points respectively. Both banks are currently trading at fair valuations as they have a Trendlyne valuation score of around 70.

These FPI trends in different sectors reflect both global economic trends, changing investor preferences and sector-specific challenges/policies in India. Right now, the overall sentiment surrounding India is increasingly positive, and this has shown up in the return of foreign funds in recent months.

 
Trendlyne Marketwatch
Trendlyne Marketwatch
24 Jul 2024
Market closes lower, KEC International bags orders worth Rs 1,422 crore from India and the USA
By Trendlyne Analysis

Nifty 50 closed at 24,413.50 (-65.6, -0.3%) , BSE Sensex closed at 80,148.88 (-280.2, -0.4%) while the broader Nifty 500 closed at 22,921.45 (56.3, 0.3%). Market breadth is overwhelmingly positive. Of the 2,162 stocks traded today, 1,684 showed gains, and 459 showed losses.

Indian indices saw losses in the afternoon session and closed in the red. The volatility index, Nifty VIX, fell 7.8% and closed at 11.8 points. KEC International closed higher as it bagged two orders worth Rs 1,422 crore in the transmission & distribution (T&D) business from India and the USA. 

Nifty Smallcap 100 and Nifty Midcap 100 closed higher. Nifty IT and Nifty Realty closed in the green. According to Trendlyne’s Sector dashboard, Telecommunications Equipment emerged as the top-performing sector of the day, with a rise of 4.4%. 

Asian indices closed lower, except Sri Lanks’s CSE All-Share index, which closed in the green. European indices traded mixed amid mixed global cues. US index futures traded mixed, indicating a cautious start to the trading session. Tesla’s EV deliveries declined 5% YoY to 443K units in Q2.

  • Relative strength index (RSI) indicates that stocks like Hindustan Unilever, Just Dial, ITC, and India Cements are in the overbought zone.

  • Housing and Urban Development Corp (HUDCO) rises as it signs a memorandum of understanding (MoU) with the Government of Rajasthan. HUDCO will provide financial assistance of up to Rs 1 lakh crore for housing and urban infrastructure projects in Rajasthan over the next five years.

  • Prabhudas Lilladher downgrades JSW Steel to 'Accumulate' with a lower target price of Rs 1,022 per share. This indicates a potential upside of 15.6%. The brokerage believes the company's revenue growth will accelerate by Q3FY25 after commissioning its Vijayanagar and BPSL brownfield projects. It expects revenue to grow at a CAGR of 11.1% over FY25-26.

  • Alembic Pharmaceuticals hits an all-time high of Rs 1,193 after it gets US FDA approval for fluphenazine hydrochloride tablets, used to treat psychotic disorders.

  • Virender Jeet, CEO of Newgen Software, highlights the company's margin target of 22-24% for FY25. He adds that Q1FY25 was seasonally the weakest for the firm. Jeet adds that the India & Middle East business will grow faster than the overall rate, and US deal wins will be key growth drivers.

  • Federal Bank is rising as its Q1FY25 revenue grows by 25.8% YoY to Rs 7,663.7 crore, driven by strong performance in the treasury and retail banking segments. Net profit increases by 16.7% YoY to Rs 1027.5 crore. The bank's asset quality also improves, with gross and net NPAs declining by 27 bps and 9 bps YoY, respectively.

  • Go Fashion surges as its Q1FY25 net profit rises 9% YoY to Rs 28.6 crore, driven by lower inventory and raw material costs. Revenue rises 15.7% YoY to Rs 220 crore during the quarter. The company features in a screener of stocks with no debt.

  • KEC International rises as it bags two orders worth Rs 1,422 crore in the transmission & distribution (T&D) business from India and the USA. The domestic order is from Power Grid Corp for 765 kV and 400 kV transmission lines, while the export order is for substation structures.

  • India’s business activity accelerates to a 3-month high, with the HSBC flash manufacturing PMI rising to 58.5 in July. The flash services PMI stands at 61.1 during the same period.

  • MIC Electronics' Chief Executive Officer (CEO) Kalidindi Satyanarayana Raju resigns. The company appoints Rakshit Mathur as his successor, effective August 1, 2024.

  • M&M Financial Services is rising as its net profit grows 38.7% YoY to Rs 497.6 crore in Q1FY25. Revenue increases by 19.7% YoY to Rs 4,354.9 crore during the quarter, driven by strong performance in the core financing segment. It appears in a screener of stocks outperforming their industry price change during the quarter.

  • Sharda Cropchem surges as it reports a net profit of Rs 27.3 crore in Q1FY25, compared to a loss of Rs 88.6 crore in Q1FY24. Revenue rises 23.1% YoY to Rs 804.4 crore during the quarter. The company features in a screener of stocks where mutual funds increased shareholding over the past two months.

  • Himanshu Mody, CFO of Suzlon Energy, expects blended margins in the 17-18% range for FY25. He highlights the company focused on balance sheet consolidation in FY24 and targets execution this year. Mody adds that the energy sector has seen a policy push beyond the budget, and the emphasis on renewable energy has been evident.

  • Adani Green rises as its subsidiary, Adani Renewable Energy, operationalises a 250 MW wind power project in Gujarat. The project features India's largest onshore wind turbines, each with a capacity of 5.2 MW.

  • United Spirits' Q1FY25 profit rises 1.7% YoY to Rs 485 crore, while its revenue increases by 7.6% YoY. EBITDA margin grows 174 bps YoY to 19.5%. The company appears in a screener of stocks outperforming their respective industry over the past year.

  • ICICI Prudential Life Insurance surges to its 52-week high of Rs 689 per share as its net profit grows 8.9% YoY to Rs 225.4 crore in Q1FY25, helped by lower advertisement and publicity expenses. Revenue increases by 8.1% YoY to Rs 25,458.4 crore during the quarter. It shows up in a screener of stocks with a decrease in provisions.

  • ITC reaches a new 52-week high of Rs 510.6 after the Finance Minister keeps taxes unchanged for the tobacco industry in the 2024 Union Budget. Jefferies upgrades the company to a 'Buy' with a higher target price of Rs 585. The brokerage notes that the last tobacco tax hike was 2%, as of February 2023, and this stability will allow ITC firm to focus on volumes with minimal price hikes. It expects GST taxes to remain stable until March 2026.

  • Bajel Projects rises sharply as it secures a letter of award worth Rs 586.2 crore from PowerGrid Corp of India. The contract involves supplying goods and services for transmission line TL01, a 765 kilovolt (KV) line from Beawar to Mandsaur, part of Rajasthan's 5.5 gigawatt (GW) renewable energy project.

  • Schaeffler India rises as its net profit rises 6.9% YoY to Rs 253.5 crore in Q1FY25. Revenue increases by 12.8% YoY during the quarter, driven by the automotive technologies and bearings & industrial solutions segments. The company appears in a screener for stocks with no debt.

  • Thyrocare Technologies rises sharply as its net profit grows by 39.7% YoY to Rs 24.2 crore in Q1FY25. Revenue increases by 18.1% YoY to Rs 160.5 crore on the back of an improvement in the diagnostic testing services segment. It shows up in a screener of stocks where mutual funds increased their shareholding over the past two months.

  • Investec re-initiates a ‘Fast Sell’ on Asian Paints and Berger Paints (India). The brokerage foresees no significant improvement in the demand environment. It believes rising competition, inferior product mix, and price cuts will restrict FY25 revenue growth to 2-4% YoY. Investec also sees risks due to higher raw material costs and employee benefit expenses and believes the current valuations do not account for these risks.

  • Bajaj Finance's net profit rises 13.8% YoY to Rs 3,401.5 crore in Q1FY25, while revenue increases by 28.7% YoY. Net NPA stands at 0.5% as compared to 0.4% in Q1FY24. The company appears in a screener of stocks with increasing shareholding by mutual funds.

  • Al Mehwar Commercial Investments sells a 0.7% stake in Elgi Equipments for approx Rs 154.6 crore in a bulk deal on Tuesday.

  • Torrent Pharmaceuticals falls sharply as its Q1FY25 net profit misses Forecaster estimates by 3%, despite growing by 20.9% YoY to Rs 457 crore. Revenue increases by 9.8% YoY to Rs 2,883 crore, helped by the improvements in Indian, Germany, and Brazil markets. It features in a screener of stocks with increasing revenue for the past four quarters.

  • Hindustan Unilever's net profit grows by 2.2% YoY to Rs 2,610 crore in Q1FY25, helped by a reduction in inventory and employee benefits expenses. Revenue increases 1.8% YoY to Rs 15,694 crore, driven by improvements in the home care, beauty & well-being, and foods & refreshment segments. It appears in a screener of stocks with rising net cash flow and cash from operating activity.

  • Nifty 50 was trading at 24,452.20 (-26.9, -0.1%), BSE Sensex was trading at 80,217.21 (-211.8, -0.3%) while the broader Nifty 500 was trading at 22,880.75 (15.6, 0.1%)

  • Of the 1,888 stocks traded today, 1,452 were on the uptrend, and 397 went down.

Riding High:

Largecap and midcap gainers today include IDBI Bank Ltd. (97.50, 12.8%), ICICI Prudential Life Insurance Company Ltd. (694.25, 8.8%) and Life Insurance Corporation of India (1,160.55, 6.8%).

Downers:

Largecap and midcap losers today include Godrej Consumer Products Ltd. (1,459.05, -3.8%), Bandhan Bank Ltd. (188.10, -3.8%) and Dabur India Ltd. (634.15, -2.8%).

Crowd Puller Stocks

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

Top high volume gainers on BSE included MMTC Ltd. (102.60, 20%), IDBI Bank Ltd. (97.50, 12.8%) and Castrol India Ltd. (270.55, 9.7%).

Top high volume loser on BSE was Bandhan Bank Ltd. (188.10, -3.8%).

V-Guard Industries Ltd. (467.50, 2.8%) was trading at 7.0 times of weekly average. Quess Corp Ltd. (686.40, 6.3%) and United Spirits Ltd. (1,382.85, 3.8%) were trading with volumes 6.6 and 6.2 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

31 stocks overperformed with 52 week highs,

Stocks touching their year highs included - Alembic Pharmaceuticals Ltd. (1,175.40, 8.3%), BASF India Ltd. (5,904.95, 4.2%) and Indus Towers Ltd. (426.15, -1.9%).

20 stocks climbed above their 200 day SMA including Sonata Software Ltd. (737.65, 7.9%) and Alok Industries Ltd. (27.07, 6.7%). 3 stocks slipped below their 200 SMA including Bajaj Finserv Ltd. (1,579.25, -2.5%) and Capri Global Capital Ltd. (210.75, -1.4%).

 
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The Baseline
23 Jul 2024
Five stocks to buy from analysts this week - July 23, 2024
By Divyansh Pokharna

1.Infosys:

Axis Direct recommends a ‘Buy’ rating on this IT consulting and software company with a target price of Rs 1,950, indicating a potential upside of 6.1%. The bigwigs of IT have got a boost in Q1FY25 after several quarters of weak numbers and high attrition. In Q1FY25, the company's net profit fell by 20.1% QoQ to Rs 6,368 crore but showed a 7.1% YoY growth, beating Forecaster estimates by 1.3%. Revenue fell 1.2% QoQ to Rs 40,153 crore due to a reduction in the retail and hi-tech segments. 

Analyst Omkar Tanksale notes a strong recovery in BFSI and other verticals, which boosted the tech major. He notes that the management expects sustained demand for Gen AI and improved client engagement, which should lead to higher realizations. The company’s total contract value (TCV) surpassed expectations by securing deals worth $4.1 billion.

Tanksale expects improvement in the North American region and Europe to sustain strong demand. The company anticipates demand should pick up further as uncertainties resolve in the next 2-3 quarters, leading to consistent deal wins.

2. Bajaj Auto:

Sharekhan maintains a ‘Buy’ rating on this 2/3-wheeler manufacturer, with a target price of Rs 11,400, indicating an upside of 21.5%. In Q1FY25, the company reported revenue growth of 15% YoY to Rs 12,267.4 crore, with net profit up 18.1% YoY to Rs 1,941.8 crore. Analysts attribute this growth to an improved motorcycle sales mix and an expansion in EBITDA margin by 130 bps YoY to 23.6%.

Bajaj Auto (BAL) expects the 2-wheeler industry to grow by 6-7% in FY25, largely driven by the 125+ cc segment. The company plans to expand its manufacturing capacity for CNG motorcycles to 40,000 unitspermonth by Q4FY25. The brokerage says, “We believe BAL's segment-specific brands are attracting attention as premium segment demand surpasses entry-level segments.” African markets have yet to fully recover, but the management expects improved export performance in Q2FY25 compared to Q1FY25.

Analysts are positive about BAL benefiting from the expanding CNG network in India, boosting demand for its CNG three-wheelers due to its market leadership. Sharekhan projects a revenue CAGR of 15.6% and an adjusted PAT CAGR of 17.9% for FY25-26.

3. India Glycols:

Edelweiss initiates a ‘Buy’ rating on this chemicals company, with a target price of Rs 1,365, indicating a potential upside of 31.1%. The stock also hit a new year high in the past week. Analyst Ranvir Singh is positive about the company’s prospects on the back of increased biofuel opportunities. The company's bio-based specialties and performance chemicals (BSPC) segment grew 26% YoY, contributing 65% to its revenue in FY24.

Singh expects India Glycols to benefit from its expanded ethanol production capacity, aiming to triple its production levels from FY23 by mid-FY25. He highlights the company’s diversification into biofuels, and expanded supplies for its spirits business as growth drivers. Additionally, the company has established a joint venture with Clariant International to enhance its specialty chemicals segment via Clariant’s expertise and resources.

Singh anticipates revenue and profit CAGR of 15.9% and 40% respectively over FY25-26. He notes that the firm is focused on refining the BSPC revenue mix and improving the balance sheet by reducing the debt.

4. Gabriel India:

ICICI Direct maintains a ‘Buy’ call on this auto parts and equipment manufacturer, with a target price of Rs 600, indicating an upside of 26.5%. The company’s net profit rose by 40% YoY to Rs 185 crore in FY24, while its revenue increased 12.5% YoY.

Gabriel holds a market share of over 30% in the 2-wheeler segment and a 70% share in the electric 2-wheeler market.Analysts Shashank Kanodia and Manisha Kesar are upbeat about the company's outlook, highlighting its outperformance in the 2-wheeler segment driven by strong domestic demand and recovering export volumes. The company also plans to expand its SUV presence by entering the sunroof segment through a JV with Inalfa Roof System, bolstering its growth potential.

Kanodia and Kesar foresee Gabriel benefiting from strong partnerships in the EV sector and a cash positive balance sheet, with continued margin strength and growth. They project a revenue and net profit CAGR of 9.3% and 24.2% respectively over FY25-26.

5. Reliance Industries:

BOB Capital reiterates its ‘Buy’ rating on this refineries and petroleum products company with a target price of Rs 3,585, indicating a potential upside of 20.4%. In Q1FY25 the company’s net profit fell 5.4% YoY to Rs 15,138 crore, missing Forecaster estimates by 9%. This decline was driven by a 5% lower EBITDA in retail and 4% lower in oil & gas. Revenue rose 11.7% YoY to Rs 231,784 crore due to an 18% YoY increase in revenue from the Oil-to-Chemicals (O2C) segment.

Despite the estimates miss, analyst Kirtan Mehta is upbeat, noting that Digital Services' EBITDA grew 8.9% YoY in Q1 and should accelerate further in Q2, due to recent tariff hikes of 13-20%. These hikes are expected to raise average revenue per user (ARPU) for Reliance Jio by 11% annually to Rs 245 by FY27. 

Mehta expects a 22% annual growth in EBITDA for both digital services and retail over FY25-FY27. Additionally, RIL’s overall EBITDA is projected to grow 11% annually during this period, primarily driven by a 22% CAGR in the consumer business.

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

(You can find all analyst picks here)