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The Baseline
11 Jul 2024
The big winners: Five stocks expected to top the Q1FY25 results season | Screener: Stocks with upcoming results and rising share prices
By Tejas MD

It’s a great time to be a stock market investor. The benchmark Nifty 50 is up 11.7% post election, and has risen 26.4% in the past year. In fact, between June 25 and July 4, records fell left and right as the Nifty hit its lifetime high in every single trading session and closed in the green for a fifth straight week. 

So right now, most investors are looking at their portfolios and feeling like geniuses. Over 50% of Nifty500 stocks are near their 52 week highs. In this bull market, losers are few. But how long will the party last?

Analysts are divided on this. While some think this is the best time to invest in the Indian stock market, many are skeptical. 

Kotak Securities expects Nifty 50 companies’ Q1FY25 profit to be flat YoY and decline 10.7% QoQ. Downbeat Q1 results could lead to a correction in a stock market many already find too hot, according to Bloomberg. 

The results season will dictate the market direction, alongside the Union budget on July 23. We take a look at five growth stocks that are expected to stand out from the pack. 

In this week’s Analyticks, 

  • Q1FY25 pre-results special: Five companies set to zoom with high growth, even in a weak results season
  • Screener: Upcoming results for Nifty500 stocks which delivered 10%+ revenue and profit growth in FY24

The big winners: Five stocks expected to top the Q1FY25 results season

Analysts have been picking their favourite stocks ahead of the Q1FY25 results. Among these, we shortlisted five Nifty 500 companies that are predicted to post especially high revenue and net profit growth both YoY and QoQ in the June quarter, according to Trendlyne’s Forecaster. What’s more? These companies already set the bar high with strong results in Q4FY24.

Growth stocks in focus are from five different industries

All five stocks in focus, Apollo Hospitals Enterprise (AHEL), Natco Pharma, Varun Beverages (VBL), KPIT Technologies, and Bajaj Auto are from different industries. 

Except for Apollo Hospitals, all stocks have risen sharply over the past year, and have also outperformed the Nifty 50.

Only Apollo Hospitals lags Nifty 50 in the past year

As a result of the upswing, the Trendlyne Momentum scores for these companies range from neutral to high, indicating buying interest in the market. However, low Valuation scores for Apollo Hospitals, Varun Beverages and KPIT Tech are a sign that they may be expensively priced. 

Natco Pharma top of the five, with good Durability, Valuation and Momentum scores

These companies also have high durability scores, thanks to strong financials and management stability. 

AHEL’s hospitals and labs to drive growth, but expensive valuation raises concerns 

Apollo Hospitals, the first hospital to be included in the Nifty 50 index, is expected to see a sharp rise in revenue (+54.6%) and net profit (139.7%) YoY in Q1FY25. 

Apollo Hospital’s revenue to grow both YoY and QoQ in Q1FY25

Healthcare services like hospitals, and diagnostics & retail health segments are expected to increase margins and drive revenue. The company’s digital business, which includes Apollo 24x7, is still spending more than it earns, and is expected to breakeven in the next six to eight quarters. 

Apollo’s competitive advantage lies in its omnichannel brand presence: it's no longer just a hospital. From clinics, hospitals and diagnostics to pharmacies (online and offline), vertical integration is helping the company to acquire customers from one business unit to another. 

Analysts are positive about the company as it is adding new beds, increasing high-margin surgeries, and broadening its test menu in the diagnostics segment.  

However, analysts believe the hospital’s recent fundraising of Rs 2,475 crore through private equity firm Advent International for its Apollo 24/7 was lower than expected. When the fundraising announcement came out on April 29, the stock fell 8% intraday. But the share price has recovered since, as investors look ahead to its Q1FY25 results. With high profits expected, the company’s PE is also elevated at 103 but is in the neutral zone according to its historical averages.

Landmark anti-cancer drug boosts Natco Pharma, generic weight loss drugs in the pipeline

This pharma company is a specialist in complex generic products, with a focus on high-risk, high-reward drug launches in the US. Natco's export formulations make up 81% of its total revenue. This segment grew 35% in Q4FY24, mainly due to its anti-cancer drug gRevlimid.

Analysts expect these gains to continue in Q1FY25, and for a few more quarters. The stock has a PE of 15.6 and is in the PE Strong Buy Zone indicating that it is currently trading far below its historical PE.

gRevlimid sales to drive Natco Pharma’s topline in Q1FY25 

To offset slowing sales from Revlimid down the line, the management plans to launch 6-7 more niche products. Drugs in the pipeline include generic Ozempic and Wegovy - the blockbuster weight loss and antidiabetic drugs - and gLynparza (anti-cancer). Natco is also banking on new first-to-file (FTF) opportunities as other companies' drug patents expire.  

The company is also focusing on acquisitions in emerging markets. The management plans to use its cash in hand (Rs 2,004 crore available) to fund acquisitions. Rajeev Nannapaneni, CEO of Natco Pharma said, “Emerging markets give you more broad-based earnings, and consistent earnings. Acquisition there is the way to go. Acquisitions in India in comparison, are very expensive.” 

Varun Beverages continues its momentum, expansion in Africa set to be the next growth driver

Varun Beverages is the largest bottler of PepsiCo's beverages globally, outside the US. This company’s share price has nearly doubled in the past year and has jumped by 6.7X in the last three years. VBL’s revenue and net profit are expected to rise by 31.8% and 34.1% YoY in Q1FY25. However, the company is in the PE Sell Zone indicating that it is currently pretty expensive and trading above its historical PE. 

Lower input prices drive margin higher in Q4FY24

Varun Bev plans to increase its international revenue (20% of its sales volume now) and is expanding its footprint in Africa through capacity expansions, acquisitions and licensing rights from PepsiCo. In the Q4FY24 earnings call, Ravi Jaipuria, VBL’s Chairman, mentioned that the Africa business unit is expected to be a major growth engine in revenue and profitability. 

But a growing threat for the company is its rival Coca-Cola's plan to sell a part of its bottling business, Hindustan Coca-Cola Beverages (HCCB). Coca Cola is eyeing an investment of about US$ 800 m to US$ 1 billion in a bid to grow its business and capture market share in India.

Demand for EVs and passenger vehicles fuels KPIT Tech’s growth

ThisIT software company hasrisen by an impressive 61.6% in the past year, outperforming theNifty IT by 24.5 percentage points.KPIT Technologies provides engineering solutions for firms in  the booming CASE (Connected Autonomous Shared and Electric) auto segment. KPIT Tech’s revenue and net profit areexpected to rise both YoY and QoQ in Q1FY25.

However, the company is in the PE Sell Zone and is currently trading above its historical PE. 

Rising EV demand to help KPIT Tech’s topline growth

For FY25, the revenue growth guidance for the IT sector overall is weak. Tier-1 companies are expected to post low single-digit growth, and Tier-2 high-single-digit growth. But KPIT Tech is expected to see 22.4% revenue growth in FY25.  

S.B. Ravi Pandit, Co-Founder and Chairman believes that the outperformance is due to the company’s focus on the mobility industry. 

The growth in the mobility & autonomous space is driving revenue for KPIT. Feature development and integration for auto bodies and auto electronics was the fastest-growing segment for KPIT in Q4FY24, with a rise of 29.4% YoY. This segment contributes to 62% of the total revenue. The company plans to build more domain expertise by adding more capabilities through joint ventures and acquisitions.

Analysts expect Bajaj Auto’s exports to rebound, add to topline growth

The auto & auto components sector has had a pretty good year, with the sector rising 76.6%. But Bajaj Auto has outperformed its sector, and risen 105.9% over the same period. Despite this rise, the TTM PE ratio of this stock (34.5) is lower than its industry average of 39.4. 

Domestic sales have outshone exports in the past year for Bajaj Auto. The 125+ cc segment, which contributes to 75% of the domestic revenue, drove revenue growth on the back of new product launches. 

Overall sales are up, despite muted exports. The company’s export volumes in FY24 were at 65% of the peak seen in FY22. However, analysts expect export markets to recover from the macroeconomic issues they faced in the last two years. This gives Bajaj a lot of room to grow.

Analysts expect Bajaj Auto’s exports to recover in Q1FY25

Analysts also expect growth from domestic premiumisation and export recovery within 3-Wheelers (3W) as the company expands its footprint in CNG 3W and e-autos. 

Screener: Upcoming results for Nifty500 companies which delivered strong FY24 net profit and revenue growth

Finance and IT stocks rise ahead of Q1 results

As the results season starts, we take a look at rising stocks which already saw high growth in net profit and revenue for FY24. This screener shows companies whose share prices are rising as results come up, and with over 10% net profit and revenue growth in FY24. 

The screener is dominated by stocks from the asset management, banking, NBFC and IT consulting & services industries. Major companies that feature in the screener are Persistent Systems, Elecon Engineering, HDFC Life Insurance, HDFC Asset Management, Crisil, L&T Technology Services, Anand Rathi, and Havells India.

Persistent Systems has risen 20.4% over the past month. This IT software & services company’s net profit increased by 18.7% YoY to Rs 1093.5 crore in FY24, driven by improved sales, strong product development, and a well-balanced portfolio mix in the healthcare and BFSI segments. KR Choksey believes that the company’s financial performance will continue to beat its larger IT peers, but may witness a relative slowdown in FY25. Trendlyne’s Forecaster expects its net profit to grow by 32.4% YoY in Q1FY25.

HDFC Life Insurance has risen by 10.9% over the past month ahead of its results, scheduled to be released on July 15. This life insurance company’s net profit grew by 15% YoY to Rs 1,574.1 crore in FY24 due to a higher-than-expected boost in its unit-linked insurance plans (ULIPs). Geojit BNP Paribas expects the company’s cross-selling with HDFC Bank to grow; its reach in tier 2 & 3 cities is also set to improve. Trendyne’s Forecaster estimates its net profit to grow by 25.2% YoY in Q1FY25. 

You can find more screeners here.

 
Trendlyne Marketwatch
Trendlyne Marketwatch
11 Jul 2024
Market closes flat, Ahluwalia Contracts bags an order worth Rs 893.5 crore
By Trendlyne Analysis

Nifty 50 closed at 24,315.95 (-8.5, 0.0%) , BSE Sensex closed at 79,897.34 (-27.4, 0.0%) while the broader Nifty 500 closed at 23,005.25 (27.6, 0.1%). Market breadth is in the green. Of the 2,161 stocks traded today, 1,282 were on the uptick, and 856 were down.

Indian indices closed flat after switching between losses and gains throughout the day. The volatility index, Nifty VIX, fell 3% and closed at around 14 points. Ahluwalia Contracts (India) closed 3.6% higher as it secured a Rs 893.5 crore order from the Airports Authority of India to develop Lal Bahadur International Airport in Varanasi.

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

European indices traded mixed. Most Asian indices closed higher, except India’s Nifty 50 which closed flat. US index futures traded mixed, indicating a cautious start to the trading session. Investors look ahead to the earnings announcements from companies like PepsiCo, Conagra, and Delta Air Lines, scheduled for release later today. Brent crude futures traded higher.

  • Money flow index (MFI) indicates that stocks like Lupin, Rail Vikas Nigam, Dr. Reddy's Laboratories, and Rajesh Exports are in the overbought zone.

  • Indegene shares rise sharply after announcing a strategic collaboration with Microsoft. The partnership aims to scale up the adoption of enterprise-grade generative AI services, enhancing commercial, medical, regulatory, and clinical operations.

  • Bharat Petroleum Corp is rising as Andhra Pradesh CM, N Chandrababu Naidu, reportedly plans to set up an oil refinery and petrochemical complex in the state. The government will procure a 5000-acre land parcel, while the company plans a capex of Rs 60,000-70,000 crore.

  • Rail Vikas Nigam surges to a new all-time high as it receives a Rs 138.4 crore letter of acceptance (LOA) from the Central Railway. The project involves modifying the overhead equipment to upgrade the electric traction system in the Amla-Nagpur Section of the Nagpur division to meet a 3000 MT loading target.

  • Investment firms like Norway's Norfund and Germany's Development Financial Institution (DEG) are reportedly looking to acquire a stake in India Grid Trust's new power transmission platform, valued at approximately $250 million.

  • Oil and gas stocks like Oil India, Hindustan Petroleum Corp, Petronet LNG, and Oil And Natural Gas Corp are rising in trade. All constituents of the sectoral index, BSE Oil & Gas, are trading in the green.

  • Yes Bank rises sharply as Moody's upgrades its outlook from 'stable' to 'positive', expecting improvement in its depositor base and lending franchise, driving enhanced core profitability over the next 12-18 months.

  • Emkay Global initiates a 'Buy' on HG Infra Engineering and sets the target price at Rs 2,100 per share. This indicates a potential upside of 23.9%. The brokerage expects revenue growth led by strong order inflows in the roads segment supported by pickup in awarding activities and expansion in the railways, water, and solar segments. It expects the company's revenue to grow at a CAGR of 16.1% over FY25-27.

  • Nomura reiterates its 'Buy' rating on Ambuja Cements with a higher target price of Rs 780. The rationale includes aggressive capacity expansion, penetration into new markets, industry-leading volume growth, enhanced brownfield opportunities, and efforts toward cost optimization. The brokerage notes the firm's ongoing initiative to increase its capacity by 24 million tonnes by FY26 through organic and inorganic expansions.

  • Shalby surges as it secures a 30-year lease from the Charity Commissioner of Maharashtra to run the Asha Parekh Hospital in Santacruz, Mumbai. This allows the multispecialty hospital chain to expand in Santacruz by adding a new 175+ bed facility.

  • Ahluwalia Contracts (India) rises as it wins an order worth Rs 893.5 crore from the Airports Authority of India to develop Lal Bahadur International Airport in Varanasi.

  • Sula Vineyards' revenue increases by 9.7% YoY to Rs 129.6 crore in Q1FY25. However, wine tourism revenue decreases by 2.5% YoY. It features in a screener of stocks with rising net cash flow and cash from operating activities.

  • Reports suggest that 36 lakh shares (1% equity) of Sun TV Network, amounting to Rs 280 crore, have changed hands in a large trade.

  • Power Grid Corp of India rises to its all-time high of Rs 348.8 per share as its board of directors increases its borrowing limit to Rs 15,000 crore from Rs 12,000 crore for FY25.

  • Glenmark Life Sciences falls sharply as its promoter and promoter group, Glenmark Pharmaceuticals and Mr. Glenn Mario Saldanha, plan to sell over 96 lakh shares (7.8% stake) through an offer for sale (OFS) on the stock exchange.

  • Shipping stocks like Great Eastern Shipping Co, Shipping Corp of India, Shreyas Shipping, and Sadhav Shipping rise more than 12.9% in trade as the industry anticipates a Rs 15,000-Rs 20,000 crore Maritime Development Fund in the upcoming Union Budget. The broader shipping industry surges over 9.5% today.

  • Manoj Verma, COO of Bikaji Foods International, notes the company's target of 13-15% volume growth with 2-4% price hikes this year and an FY25 margin target of 14%. He adds the current capacity utilization stands at 40-45% and aims to take it to 60-65% in the next few years, with a total retail outlet reach of 12-12.5 lakh in the next two years.

  • GE Power India rises as its board approves the plan to sell its hydro and gas power businesses through a slump sale as part of business restructuring.

  • Oriana Power rises sharply to its 5% upper circuit as it bags a Rs 155 crore order for a 40-megawatt peak (MWp) solar project in Rajasthan.

  • HPL Electric & Power surges as it wins orders worth Rs 2,100.7 crore from regular customers to supply smart meters in the normal course of business.

  • Morgan Stanley maintains its ‘Overweight’ rating on InterGlobe Aviation (IndiGo) with a target price of Rs 5,142. The brokerage notes that two large airports are coming up in FY26, leading to further expansion in air travel. It adds that the industry is currently more consolidated. Meanwhile, Morgan Stanley sees a 3% YoY decline in Q1FY25 EBITDA due to inflationary pressures.

  • Tata Elxsi is falling as its net profit declines by 6.5% QoQ to Rs 184.1 crore in Q1FY25 due to higher costs of raw materials and employee benefits expenses. However, revenue grows by 2% QoQ to Rs 958.5 crore, helped by improvements in the software development & services and system integration & support services segments. It shows up in a screener of stocks where mutual funds decreased their shareholding in the past quarter.

  • Zydus Lifesciences gets US FDA approval for sacubitril and valsartan tablets, used to treat chronic heart failure in adults to help reduce the risk of death and hospitalization. Sacubitril and valsartan tablets have annual sales of $5,483 million.

  • Anil Kumar Goel buys a 1% stake in Triveni Engineering & Industries in Q1FY25. He now holds a 4.5% stake in the company.

  • Kalpataru Projects International rises sharply as its joint venture (JV) and international subsidiaries bag multiple orders worth Rs 2,995 crore across the transmission & distribution (T&D), water, and buildings & factories (B&F) businesses.

  • Nifty 50 was trading at 24,360.80 (36.4, 0.2%), BSE Sensex was trading at 80,051.81 (127.0, 0.2%) while the broader Nifty 500 was trading at 23,027.70 (50.1, 0.2%).

  • Market breadth is ticking up strongly. Of the 1,882 stocks traded today, 1,454 were in the positive territory and 397 were negative.

Riding High:

Largecap and midcap gainers today include Oil India Ltd. (551, 7.4%), NHPC Ltd. (114.07, 4.8%) and Hindustan Petroleum Corporation Ltd. (350.05, 4.5%).

Downers:

Largecap and midcap losers today include Tube Investments of India Ltd. (4,248.70, -6.2%), Macrotech Developers Ltd. (1,472.30, -3.5%) and Delhivery Ltd. (377, -2.8%).

Volume Shockers

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

Top high volume gainers on BSE included Engineers India Ltd. (290.25, 10.7%), Oil India Ltd. (551, 7.4%) and Great Eastern Shipping Company Ltd. (1,454.05, 6.7%).

Top high volume losers on BSE were Tube Investments of India Ltd. (4,248.70, -6.2%), Cholamandalam Investment & Finance Company Ltd. (1,404.80, -1.1%) and Elgi Equipments Ltd. (708, -0.9%).

Bayer Cropscience Ltd. (6,570.80, -0.3%) was trading at 8.9 times of weekly average. Sona BLW Precision Forgings Ltd. (719.90, 4.3%) and Sapphire Foods India Ltd. (1,550, -0.3%) were trading with volumes 7.9 and 6.9 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

34 stocks made 52 week highs,

Stocks touching their year highs included - Blue Dart Express Ltd. (8,611.30, 2.6%), Britannia Industries Ltd. (5,761.30, 0.1%) and Zydus Lifesciences Ltd. (1,163.35, -1.4%).

9 stocks climbed above their 200 day SMA including Piramal Enterprises Ltd. (934.40, 2.8%) and Jindal Worldwide Ltd. (338.70, 1.8%). 5 stocks slipped below their 200 SMA including L&T Technology Services Ltd. (4,942.85, -1.9%) and Coforge Ltd. (5,563.50, -1.9%).

 
Trendlyne Marketwatch
Trendlyne Marketwatch
10 Jul 2024
Market closes lower, RVNL bags an order worth Rs 187.3 crore from MMRC
By Trendlyne Analysis

Market sinks in today's trading. Nifty 50 closed at 24,324.45 (-108.8, -0.5%) , BSE Sensex closed at 79,924.77 (-426.9, -0.5%) while the broader Nifty 500 closed at 22,977.65 (-89.7, -0.4%). Market breadth is sharply down. Of the 2,161 stocks traded today, 664 were on the uptick, and 1,482 were down.

Indian indices closed in the red, after opening flat today. The Indian volatility index, Nifty VIX, rose 0.7% and closed at 14.4 points. Adani Ports & Special Economic Zone received a letter of intent (LOI) for a 30-year concession at Gujarat's Deendayal Port.

Nifty Smallcap 100 and Nifty Midcap 100 closed in the red taking cues from the benchmark index. S&P BSE India Infrastructure and Nifty Low Volatility 50 were among the top index gainers today. According to Trendlyne’s Sector dashboard, Diversified Consumer Services emerged as the best-performing sector of the day, with a jump of over 1.2%.

Asian indices closed in the red while European indices are trading higher. US index futures traded higher, indicating a positive start to the trading session. Brent crude oil futures are trading up by 0.2% as industry data showed a bigger-than-expected draw in U.S. inventories.

  • Relative strength index (RSI) indicates that stocks like Laurus Labs, Lupin, Firstsource Solutions, and Infosys are in the overbought zone.

  • Asian Paints rises sharply as it hikes prices by 0.7-1% across its portfolio, effective today. The move reportedly comes to offset rising input costs.

  • Infosys partners with Sector Alarm, backed by global investment firm KKR, for a five-year project to migrate their Enterprise Resource Planning systems to Microsoft Dynamics 365 Finance & Operations, aiming to modernize and streamline financial and operational frameworks.

  • Greaves Cotton's wholly owned subsidiary, Greaves Finance, partners with ACKO to cross-sell insurance and financing options through its evfin platform.

  • Morgan Stanley expects that Indian companies will likely report muted earnings in Q1 due to a high base. The brokerage expects revenue and net profit growth of 6% and 7%, respectively for companies in the Sensex index. It is ‘Overweight’ on financials, consumer discretionary, industrials and technology.

  • Sharekhan retains its 'Buy' call on Dabur India with a higher target price of Rs 715 per share. This indicates a potential upside of 12.8%. The brokerage sees revenue growth in the medium term driven by market share gains, distribution expansion, investments in power brands, and new launches. It expects the company's revenue to grow at a CAGR of 8% over FY25-26.

  • Siemens' consortium with Rail Vikas Nigam reportedly wins a Rs 766 crore order from Bangalore Metro Rail Corp for the electrification of the Bengaluru Metro Phase 2 project. The company will receive its share of approx Rs 558 crore as part of the consortium.

  • Lloyds Metals & Energy raises Rs 1,218 crore through a qualified institutional placement (QIP). The company issues 1.8 crore shares at Rs 696 per share to long-only funds, mutual funds, and insurance companies.

  • BofA Securities downgrades its rating on HDFC Bank to 'Neutral' with a lower target price of Rs 1,830. The brokerage expects FY25 will pose challenges for the lender. It anticipates a balanced mix of positives and negatives during the year. It foresees the risk-reward ratio remaining within a narrow range over the coming 12 months.

  • Delhivery falls as 2.3 crore shares (3.2% stake), amounting to Rs 910.2 crore, reportedly change hands in a block deal. The Canada Pension Plan Investment Board (CPPIB) is a likely seller in the transaction.

  • IDBI Capital initiates coverage on Sansera Engineering with a 'Buy' call and a target price of Rs 1,625 per share. This indicates a potential upside of 19.%. The brokerage believes the company's expansion into high-margin export markets will further boost profitability and EPS. It expects revenue to grow at a CAGR of 10.7% over FY25-27.

  • Supreme Industries rises sharply as Jefferies upgrades the target price to Rs 6,700 per share while maintaining its 'Buy' call. This indicates a potential upside of 12.8%. The brokerage believes the company is well-positioned in housing, capex, and agriculture, estimating a 25% EPS CAGR over FY24-27.

  • India and Russia aim to boost bilateral trade to $100 billion by 2030, address trade imbalances, remove non-tariff barriers, and explore collaboration within the Eurasian Economic Union (EAEU). Trade between the two countries reached $65.6 billion in FY24, marking a 33% annual increase and nearly 5X higher than pre-pandemic levels of $10.1 billion. Trade has notably surged since 2022, driven by Indian fuel importers purchasing discounted Russian crude.

  • Auto stocks like Mahindra & Mahindra, Tata Motors, Bajaj Auto, TVS Motor, and Hero MotoCorp are falling in trade. All constituents of the broader sectoral index, Nifty Auto, barring Maruti Suzuki and Eicher Motors are also trading in the red.

  • Adani Port receives a letter of intent (LOI) for a 30-year concession at Deendayal Port. The agreement involves developing, operating, and maintaining Berth No. 13 for handling multipurpose clean cargo, including container cargo.

  • Krishna Institute of Medical Sciences acquires a 100% stake in Chalasani Hospitals for Rs 75 crore. Chalasani Hospitals is a 200-bed multi-specialty hospital in Vizag.

  • According to a poll of economists, India’s retail inflation is expected to rise to 4.8% in June, driven by vegetable prices, which surged due to extreme weather conditions. Prices of staples like onions, tomatoes, and potatoes grew by double digits in June.

  • Mankind Pharma rises sharply after 37 lakh shares (0.9% stake), amounting to Rs 770.7 crore, reportedly change hands in a block deal. Hema CIPEF is the likely seller in the transaction.

  • Rail Vikas Nigam rises sharply as it bags an order worth Rs 187.3 crore from Maharashtra Metro Rail Corp (MMRC) to construct six elevated metro stations in Nagpur.

  • Bansal Wire Industries' shares debut on the bourses at a 39.1% premium to the issue price of Rs 256. The Rs 745 crore IPO has received bids for 59.6 times the total shares on offer.

  • Mahindra & Mahindra declines more than 6% as it announces price cuts for its top-selling SUV 'XUV 700' by 10% from Rs 21.5 lakh to Rs 19.5 lakh on an ex-showroom basis due to overall weak passenger vehicle demand.

  • Emcure Pharmaceuticals' shares debut on the bourses at a 31.4% premium to the issue price of Rs 1,008. The Rs 1,952 crore IPO has received bids for 67.9 times the total shares on offer.

  • Delta Corp falls sharply as its net profit plunges by 68.1% YoY to Rs 21.7 crore in Q1FY25. Revenue declines by 28.3% YoY to Rs 195.8 crore due to lower sales from the gaming operations and hospitality segments. It appears in a screener of stocks with declining net cash flow.

  • BLS International Services' arm, BLS International FZE, acquires a 100% stake in iDATA for Rs 720 crore. iDATA is a Turkey-based visa and consular services provider.

  • Havells India is rising as it plans to expand its cable production capacity at the Alwar plant by 41.2 lakh km annually by March 2026 with an investment of Rs 375 crore.

  • Nifty 50 was trading at 24,394.75 (-38.5, -0.2%) , BSE Sensex was trading at 80,481.36 (129.7, 0.2%) while the broader Nifty 500 was trading at 23,061.65 (-5.7, 0.0%)

  • Of the 1,943 stocks traded today, 1,244 were on the uptrend, and 663 went down.

Riding High:

Largecap and midcap gainers today include Rail Vikas Nigam Ltd. (609.95, 12.4%), Indian Railway Finance Corporation Ltd. (203.71, 4.0%) and Asian Paints Ltd. (2,996.45, 3.2%).

Downers:

Largecap and midcap losers today include Mahindra & Mahindra Ltd. (2,732, -6.6%), UNO Minda Ltd. (1,060.25, -4.5%) and Bandhan Bank Ltd. (192.43, -4.2%).

Volume Rockets

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

Top high volume gainers on BSE included Shoppers Stop Ltd. (895.95, 16.8%), Indigo Paints Ltd. (1,538.20, 10.7%) and Rajesh Exports Ltd. (315.35, 10.1%).

Top high volume losers on BSE were Mahindra & Mahindra Ltd. (2,732, -6.6%), Multi Commodity Exchange of India Ltd. (3,717.95, -4.1%) and Indian Energy Exchange Ltd. (176.12, -4.0%).

Pfizer Ltd. (5,018.80, 6.5%) was trading at 16.1 times of weekly average. Prism Johnson Ltd. (172.20, 4.7%) and Swan Energy Ltd. (721.75, -0.8%) were trading with volumes 9.6 and 9.2 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

32 stocks made 52 week highs,

Stocks touching their year highs included - Aurobindo Pharma Ltd. (1,337.10, 0.4%), Bharat Electronics Ltd. (333.85, -0.3%) and Britannia Industries Ltd. (5,755.55, 1.5%).

8 stocks climbed above their 200 day SMA including Indigo Paints Ltd. (1,538.20, 10.7%) and Westlife Foodworld Ltd. (855.90, 2.4%). 12 stocks slipped below their 200 SMA including Jindal Worldwide Ltd. (332, -3.4%) and Gujarat Narmada Valley Fertilizers & Chemicals Ltd. (687.20, -2.5%).

 
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The Baseline
10 Jul 2024
Chart of the Week: Current market breadth indicates bullish momentum for the Nifty500
By Satyam Kumar

Nifty500 recently crossed the landmark 23,000 level, as it witnessed a swift rally rising 13.5% post-elections. 

How broad-based is the momentum right now?  In the June quarter, 234 of the 500 stocks in the index were trading at a discount of more than 10% from their 52-week highs, which means that more than 50% of Nifty500 stocks were hovering near year highs, a bullish signal. 

Analysing data from the past five years, we see that the Nifty500 is more likely to hit new highs when more than 50% of its stocks are trading near their year highs.

In this week’s Chart of the Week, we take a look at the number of Nifty500 stocks trading at a discount of over 10% from their 52-week highs, for every quarter over the past five years. We try to identify the correlation between overall market sentiment and the performance of Nifty500.

This screener tracks all Nifty500 stocks trading at a discount of more than 10% from their 52-week highs. Here, the screener rewind feature came in handy as it helped us to go back in time and see the number of stocks that were trading at a discount in previous quarters. 

Markets witness a roller coaster ride during the pandemic

On March 12, 2020, Nifty500 saw a decline of over 8% as Karnataka confirmed its first death from the Covid pandemic. The market also took a hit as the World Health Organization (WHO) declared the COVID-19 outbreak a global pandemic. In the weeks following up to March 12, the index had already set foot on a steady descent, declining more than 20% as Covid cases rose across the country.

Two weeks later, on March 23, Nifty500 crashed by another 917 points after falling 12.8% in a single day. The next day, PM Modi called for a complete lockdown as the death toll in India reached 10 and over 14,000 globally. Looking back in time, we can see that the lockdown imposed from March 24 eventually turned out to be a positive one for the stock market. Nifty500 also found the floor of what seemed like a bottomless pit at 6,151.6. 

Low interest rate period post-pandemic boost market to new highs 

Even though the lockdown seemed like a necessary caution to contain the spread of the deadly virus, it led to another set of tensions—an economic slowdown globally which led to many people losing their jobs. With everything at a standstill, consumption plummeted, and businesses began to fail. By the end of Q4FY20, the number of Nifty500 stocks trading at a discount of more than 10% jumped to 400, up from 281 stocks a quarter earlier.

To counter this, central banks worldwide slashed interest rates to negligible levels, injecting money into the economy to spur growth. The Reserve Bank of India (RBI) reduced its repo rate to 4% in May ‘22, and the US Fed slashed interest rates to 0.25% in March ‘22. This led to rampant borrowing and growth among major economies, causing most stocks to rally to all-time highs. Nifty500 rallied from a pandemic low of 6,151.6 to a high of 16,004.5 in just over a year and a half.

Low borrowing costs worldwide boost the economy, but send inflation sky-high

But, just as the world came out of the pandemic, another problem arose. Rising inflation started hitting both consumers and businesses. In Q3FY22, 364 Nifty500 stocks traded at a discount of more than 10%, which is a significant jump compared to 247 stocks a quarter ago.

In a bid to control inflation, central banks started raising interest rates. As a result, most of the companies, now used to low pandemic-era rates, were hit by rising financial costs on their bottom line. In the chart above, it is clear that the market sentiment remained bearish for six consecutive quarters starting from Q3FY22 to Q4FY23. During this period, more than 70% of the stocks belonging to the Nifty500 index traded at a discount of more than 10% from their annual highs.

The bearish trend came to a halt as RBI surprised markets by holding interest rates steady at 6.5% on April 6 following six consecutive hikes. Most analysts had expected one final 25 basis point (bps) hike in the RBI's current tightening cycle, which has seen it raise the repo rate by a total of 250 bps since May last year. 

As soon as rate hikes stopped, and speculations surrounding rate cuts started to emerge, Nifty500 witnessed a swift rally to break the 16,000 mark on June 7 last year. In Q1FY24, there is a significant decline in the number of stocks that are trading at a discount of more than 10% from their one-year high, halving from 403 in Q4FY23 to 206 in Q1FY24, suggesting a bullish stance. 

Nifty500 rises to new all-time highs as PM Modi wins historic third term

The number of stocks trading at sharp discounts fell further to 157 indicating strong bullish momentum in Q3FY24, with Nifty500 rallying by around 12% during the same quarter. This rise came after the Modi-led Bharatiya Janata Party was able to score victory in three of the four state elections in December 2023, leading to speculations of Modi easily winning a third term as Prime Minister in the upcoming Lok Sabha elections. 

However, this bullish momentum faded in the months leading up to the election. In the chart above, we can see a bearish blip in Q4FY24 as 341 Nifty500 stocks were trading at a discount of more than 10% from their one-year highs. But, as Narendra Modi was eventually reelected as PM for his third term with the help of a coalition government, volatility returned to normal levels. More than 50% of stocks were trading near their 52-week high at the end of Q1FY25 as Nifty500 crossed the 22,500 mark.

Currently, markets are looking bullish as only 207 of the total Nifty500 stocks are trading at a discount of more than 10% from their annual highs. The Nifty500 is poised to trade above the 23,000 level, with around 60% of its constituents trading near their one-year highs. With inflation under control, analysts expect the RBI to start the rate-cutting cycle in Q3FY25. 

Meanwhile, keep an eye on the Q1 results coming this month, coupled with the Budget announcement due on July 23, which could determine the course of the markets going forward.

 
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The Baseline
09 Jul 2024
Five stocks to buy from analysts this week - July 09, 2024
By Divyansh Pokharna

1. Mishra Dhatu Nigam:

ICICI Direct maintains a ‘Buy’ rating on this defence stock with a target price of Rs 600, indicating a potential upside of 14.9%. Analysts Chirag Shah and Vijay Goel note that the company uses advanced manufacturing to develop a variety of special metals and alloys (like titanium, steel, and super alloys based on nickel, iron, and cobalt) for the defence, space, and energy sectors.

Analysts observe that as of the end of May 2024, the company has an order backlog of Rs 1,767 crore, approximately 1.7 times the FY24 revenues. About 78% is from the defence sector, 12% from space, 5% from exports, and 5% from other areas. This distribution ensures strong revenue growth visibility for the next two years. The company anticipates an order inflow of Rs 1,150 crore in FY25, building on Rs 1,322 crore worth of orders received in FY24.

Analysts Shah and Goel anticipate that the company's operational performance will improve substantially in the coming quarters, led by improvements in supply chain and inventory management. For the FY 25-26 period, they expect a CAGR of revenue/EBITDA and PAT at 23%, 41%, and 57%, respectively.

2. Supreme Industries:

Sharekhan maintains a ‘Buy’ rating on this plastic products company with a higher target price of Rs 6,850, indicating a potential upside of 15.5%. Supreme Industries (SIL) saw its overall volumes rise 22% YoY, with plastic pipe volumes up 27% in April-May 2024.

The analysts foresee strong growth potential for SIL through capacity expansions and product diversification. SIL plans to expand its manufacturing capabilities by adding three new greenfield sites, bolstering its piping system capacity to 10.5 LTPA and plastic pipe system capacities to 8.4 LTPA by FY25 end. It has a committed capex of Rs 1,500 crore, covering ongoing projects and new expansions. The company's focus includes enhancing its product portfolio in protective packaging and valves, and advancing renewable energy initiatives to meet 30% of energy requirements through renewable sources by March 2025. 

Sharekhan anticipates SIL to benefit from sustained agriculture and infrastructure demand and stabilized PVC prices. It projects a revenue CAGR of 17% and an adjusted PAT CAGR of 18.7% over FY25-27, driven by the company's internal funding for aggressive expansions.  

3. Dabur India:

BOB Capital maintains a ‘Buy’ rating on this personal products company, with an upgraded target price of Rs 742. This indicates a potential upside of 18.8%. Dabur’s Q1FY25 business update showed sales growth of mid to high single digits, with domestic volumes improving and earnings slightly ahead of sales growth.

Dabur plans to accelerate sales growth through FY25, supported by government initiatives and improving rural demand post-monsoon. Analyst Lokesh Gusain has a positive outlook on Dabur and expects domestic volumes to improve further, and gross margins to expand due to stable commodity prices. The company is focused on enhancing its home and personal care (HPC) and Healthcare segments, which saw high single-digit volume growth. Dabur is also expanding its international market presence, despite currency challenges in Turkey and Egypt.

Analyst Gusain highlights that Dabur's focus on "natural" products positions it well to benefit from rural recovery, as demand in this segment grows.  He projects a revenue CAGR of 11.1% and an adjusted PAT CAGR of 12.4% over FY25-26.

4. BLS International:

Edelweiss initiates a ‘Buy’ rating on this travel services firm, with a target price of Rs 518, indicating a potential upside of 36.1%. The company’s revenue grew 7.6% YoY to Rs 3,677 crore in FY24, and its net profit rose 50% YoY to Rs 313 crore, supported by strong demand in housing and infrastructure sectors.

As the travel sector booms, BLS International plans to grow its visa and consular services by integrating new technologies.  The company is looking to expand its global footprint, particularly in Europe and North America. Analyst Nikhil Shetty is upbeat about BLSIN's cost-effective approach in offering government-to-citizen (G2C) services and managing banking correspondence. Reduction in operational expenses and tech adoption is expected to drive profitability for the company, and market share gains in the competitive visa outsourcing industry.

Shetty sees potential in BLSIN's strategy to expand digital services and increase touch points across India, and expects this to enhance revenue and profitability in banking correspondence through value-added services (VAS). He sees the firm's profit and revenue growing at a CAGR of 34.8% and 30.1%, respectively, over FY25-26.

5. DOMS Industries:

Axis Direct initiates a ‘Buy’ rating on this commodity printing/stationery company with a target price of Rs 2,670, indicating a potential upside of 18.7%. Analysts Preeyam Tolia and Suhanee Shome say, “The Indian stationery and art material market is projected to grow at a 13% CAGR from FY23 to FY28, reaching Rs 71,600 crore by FY28, from Rs 38,500 crore in FY23.” DOMS Industries held a market share of 13% in FY23.

The analysts highlight the company’s acquisition of a new 44-acre greenfield facility, which should support future growth. The company is focused on launching new products such as bags and toys and is expanding into the larger pens market instead of small pencil segments by maintaining a strategic partnership with FILA for global reach and R&D capabilities.

Tolia and Shome expect the company to achieve CAGR growth rates of 25% for revenue, 26% for EBITDA, and 28% for PAT from FY25 to FY27. They expect EBITDA margins to range between 17% and 18% during FY 25-27, with ROCE increasing to 25% in FY27 from 22% in FY24.

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

(You can find all analyst picks here)

 
Trendlyne Marketwatch
Trendlyne Marketwatch
09 Jul 2024
Market closes higher, Maruti Suzuki benefits from UP government's hybrid car fee waiver
By Trendlyne Analysis

Nifty 50 closed at 24,433.20 (112.7, 0.5%) , BSE Sensex closed at 80,351.64 (391.3, 0.5%) while the broader Nifty 500 closed at 23,067.35 (96.2, 0.4%). Market breadth is holding steady. Of the 2,169 stocks traded today, 1,041 showed gains, and 1,111 showed losses.

Indian indices extended their gains from the afternoon session and closed at an all-time highs. The Indian volatility index, Nifty VIX, rose 5%and closed at 14.3 points. Maruti Suzuki closed higher following the Uttar Pradesh government's decision to waive registration fees on hybrid cars to promote green technology.

Nifty Smallcap 100 and Nifty Midcap 100 closed in the green, taking cues from the benchmark index. Nifty Auto and Nifty Pharma were among the top index gainers today. According to Trendlyne’s Sector dashboard, Automobiles & Auto Components emerged as the best-performing sector of the day, with a rise of 1.7%.

Asian indices closed in the green except Hang Seng, FTSE China 50 and SET which closed flat. European indices are trading mixed. US index futures are trading in green, indicating a positive start to the trading session. Brent crude oil futures are trading in the red.

  • HDFC Life Insurance Co and HDFC Asset Management Co rise by 3.8% and 1.8% respectively over the past week, ahead of their Q1FY25 results on July 15.

  • JK Cement sees a long buildup in its July 25 future series as its open interest rises 46.7% with a put-call ratio of 1.1.

  • Diamond Power Infrastructure rises as it bags an order worth Rs 899.8 crore from Adani Energy Solutions to supply new generation aluminum alloy conductors.

  • RPP Infra Projects surges to its all-time high of Rs 169.4 after securing orders worth Rs 310 crore. The contracts include building a new district jail in the Hapur and Jaunpur districts of Uttar Pradesh under the engineering, procurement, and construction (EPC) model.

  • Moody’s retains India’s CY24 GDP growth forecast at 6.8%. The firm notes growing domestic and international demand is boosting GDP growth across emerging markets (EMs), though the outcomes vary significantly among different countries. The agency anticipates inflation to decrease to 5.2% this year from 5.7% in 2023, further declining to 4.8% in the subsequent year.

  • Alembic Pharmaceuticals gets US FDA approval for bromfenac ophthalmic solution, used to treat postoperative inflammation and reduce ocular pain in cataract surgery patients. It has an estimated annual sales of $182 million.

  • Maruti Suzuki rises sharply following the Uttar Pradesh government's decision to waive registration fees on hybrid cars to promote green technology. The state's move includes strong hybrids under EV benefits, boosting vehicle sales.

  • H.G. Infra signs a memorandum of understanding (MoU) with Ultra Vibrant Solar Energy to acquire shares or voting rights in solar power plant projects, either by incorporating new companies or by purchasing shares in the existing company.

  • Mutual Funds' net equity inflows grow by 17% MoM to Rs 40,608.2 crore in June, according to data released by the Association of Mutual Funds in India (AMFI). Equity AUM of the industry stands at 25.4 lakh crore, while total AUM stands at Rs 61.2 lakh crore during the same period.

  • GM Breweries is rising as its net profit grows by 25.3% YoY to Rs 24.9 crore in Q1FY25. Its revenue increases by 3.7% YoY to Rs 600.6 crore during the quarter. It features in a screener of stocks with annual net profit growth higher than sector average net profit growth.

  • BOB Capital Markets retains 'Hold' on Marico with a higher target price of Rs 699 per share. This indicates a potential upside of 10.3%. The brokerage expects margin and destocking pressure in the indirect channel over the next 2-3 quarters. It expects the company's revenue to grow at a CAGR of 6.5% over FY25-26.

  • Rail Vikas Nigam rises sharply to its all-time high of Rs 619 as 1.4 crore shares (0.7% equity), amounting to Rs 827 crore, reportedly change hands in a block deal. The transaction was executed at an average price of Rs 585 per share.

  • Shares of rice milling firms like LT Foods and KRBL are surging following reports that the Indian government may lift restrictions on white rice exports with a fixed duty. The government is considering scrapping the 20% levy on parboiled rice shipments. India's rice exports fell by 21% to 2.9 million tonnes in the first two months of FY25, with non-basmati rice shipments down 32% to 1.93 million tonnes.

  • RateGain Travel rises sharply as it secures a multi-year partnership with Malaysia Airlines. This partnership will allow Malaysia Airlines to use RateGain’s AirGain platform to improve its pricing intelligence and competitive advantage.

  • Larsen & Toubro is rising as its precision engineering systems business bags an order worth Rs 1,000-2,500 crore from Hindustan Shipyard to construct two fleet support ships (FSS). The company also acquires a 100% stake in SiliConch Systems for a total consideration of Rs 183 crore.

  • Godrej Industries' promoters buy a 12.7% stake worth Rs 3,800 crore on Monday. The promoters include Nadir Godrej, Tanya Dubash, Nisaba Godrej, and Pirojsha Godrej.

  • A poll of analysts suggests Tata Consultancy Services' revenue will grow by 1.5% QoQ, reaching Rs 62,170 crore in Q1FY25 from Rs 61,237 crore in Q4FY24. They attribute this growth to the increased implementation of earlier secured contracts. However, they caution that this could be partly offset due to delays in the expansion of the BSNL deal and revenue reductions in the current discretionary portfolio.

  • Inox Wind is rising as it bags an order to supply its 3 MW wind turbine generators (WTGs) for a 200 MW wind project on a turnkey basis. The company will also provide operations and maintenance (Q&M) services post commissioning.

  • Utkarsh Small Finance Bank receives approval from the Reserve Bank of India (RBI) to reappoint Govind Singh as its Managing Director and CEO for three years, effective September 21.

  • Swan Energy surges as BlackRock, through its three affiliates, buys 45.6 lakh shares worth Rs 304 crore in the company via a block deal.

  • Citi maintains its ‘Sell’ rating on Persistent Systems with a target price of Rs 3,080. The brokerage expects strong growth in Q1 but sees a sequential decline in margins. It notes the management’s projection of a further decline in Q2 margins due to wage hikes. Citi anticipates the total contract value (TCV) will remain in a similar range as in previous quarters.

  • Dolly Khanna buys a 0.5% stake in Selan Exploration Technology in Q1FY25. She now holds a 1.6% stake in the company.

  • Ashish Kacholia buys a 0.2% stake in Dhabriya Polywood in Q1FY25. He now holds a 6.7% stake in the company.

  • Pitti Engineering surges to its all-time high of Rs 1,204 per share as its board of directors approves a qualified institutional placement (QIP) of shares worth Rs 360 crore. The board also sets the floor price at Rs 1,054.3 per share.

  • Torrent Power rises sharply as it signs a memorandum of understanding (MoU) with ARS Steels & Alloy International (ARS) and Torrent Urja 14 (TU14) to set up a 50 megawatt peak (MWp) solar power plant in Tamil Nadu.

  • Nifty 50 was trading at 24,356.30 (35.8, 0.2%) , BSE Sensex was trading at 80,066.19 (105.8, 0.1%) while the broader Nifty 500 was trading at 23,039.85 (68.7, 0.3%).

  • Market breadth is ticking up strongly. Of the 1,937 stocks traded today, 1,479 were gainers and 425 were losers.

Riding High:

Largecap and midcap gainers today include Gland Pharma Ltd. (2,031.80, 7.8%), Maruti Suzuki India Ltd. (12,827.70, 6.7%) and Union Bank of India (139.78, 4.9%).

Downers:

Largecap and midcap losers today include Rail Vikas Nigam Ltd. (542.75, -4.1%), Schaeffler India Ltd. (4,298.40, -4.0%) and Indian Railway Finance Corporation Ltd. (195.85, -3.1%).

Volume Shockers

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

Top high volume gainers on BSE included Bombay Burmah Trading Corporation Ltd. (2,379.85, 18.6%), Jubilant Ingrevia Ltd. (590, 11.1%) and Gland Pharma Ltd. (2,031.80, 7.8%).

Top high volume loser on BSE was Atul Ltd. (6,790.60, -0.5%).

Mangalore Refinery And Petrochemicals Ltd. (232.82, 6.4%) was trading at 21.6 times of weekly average. Welspun Living Ltd. (160.62, 5.2%) and Indian Overseas Bank (64.54, 4.1%) were trading with volumes 13.1 and 7.8 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

51 stocks took off, crossing 52 week highs,

Stocks touching their year highs included - Aegis Logistics Ltd. (937.10, 1.1%), Aurobindo Pharma Ltd. (1,331, 2.0%) and Bharat Electronics Ltd. (334.80, 0.1%).

12 stocks climbed above their 200 day SMA including KRBL Ltd. (331.20, 7.3%) and IndiaMART InterMESH Ltd. (2,724, 2.9%). 6 stocks slipped below their 200 SMA including IIFL Finance Ltd. (501.30, -2.0%) and Procter & Gamble Hygiene & Healthcare Ltd. (16,637, -1.2%).

 
Trendlyne Marketwatch
Trendlyne Marketwatch
08 Jul 2024
Market closes flat, Larsen & Toubro bagged orders worth Rs 10,000-15,000 crore from Middle East
By Trendlyne Analysis

Nifty 50 closed at 24,320.55 (-3.3, 0.0%) , BSE Sensex closed at 79,960.38 (-36.2, -0.1%) while the broader Nifty 500 closed at 22,971.15 (-16.5, -0.1%). Market breadth is in the red. Of the 2,207 stocks traded today, 840 were on the uptick, and 1,347 were down.

Indian indices closed flat after switching between losses and gains throughout the day. The volatility index, Nifty VIX, rose 7.1% and closed at 13.6 points. Larsen & Toubro's renewables business bagged orders worth Rs 10,000-15,000 crore from a Middle East client to set up two solar power plants with a cumulative capacity of 3.5 GW.

Nifty Smallcap 100 and Nifty Midcap 100 closed in the red. Nifty Consumer Durables and Nifty PSU Bank closed lower. According to Trendlyne’s Sector dashboard, Fertilizers emerged as the top-performing sector of the day, with a rise of 2.2%.

Major European indices traded higher, while major Asian indices closed lower. Most US index futures traded flat or lower, indicating a mixed start to the trading session. Paramount and Skydance enter a merger agreement worth $8 billion earlier today.

  • Money flow index (MFI) indicates that stocks like Castrol India, Infosys, Craftsman Automation, and Garden Reach Shipbuilders & Engineers are in the overbought zone.

  • GRM Overseas rises sharply as it partners with Diplomat Georgia to expand its basmati rice brand 'Tanoush' in Georgia through Diplomat's distribution channel. According to the agreement, Diplomat Georgia will have exclusive rights to distribute GRM's products for two years.

  • CG Power & Industrial Solutions surges to its all-time high of Rs 783.8 per share as its board of directors appoints Amar Kaul as the new Managing Director and CEO for five years, effective July 25.

  • According to data from Grant Thornton, Q1CY24 sees 501 deals worth $21.4 billion, reaching a new quarterly volume record since Q2CY22. Mergers & acquisitions and private equity deals totaled 467, valued at $14.9 billion. This represents a 9% increase in volume but a 28% decrease in value compared to the previous quarter, as there were no mega-mergers such as the Reliance-Disney deal in Q1CY24.

  • HPL Electric & Power rises sharply as it signs a memorandum of understanding (MoU) with Guangxi Ramway Technology, China. The agreement focuses on local manufacturing through phased manufacturing, technical tie-up, and procurement for assembling latching relays in India.

  • ICICI Prudential Life Insurance's new business premium rises 14.1% YoY to Rs 1,511 crore in June, and the new business sum assured increases by 13.6% YoY to Rs 85,348 crore.

  • Rail Vikas Nigam surges to its all-time high of Rs 567.5 per share after 1.5 crore shares change hands in a block deal. This was driven by a positive market sentiment following an MoU with Delhi Metro Rail Corp and plans by the Railway Ministry to manufacture an additional 10,000 non-AC coaches to cater the growing demand.

  • Reports suggest that Blackstone and its consortium partners Abu Dhabi Investment Authority and Singapore’s GIC are in talks with Haldiram's promoters for a controlling stake in the business at a valuation of up to Rs 70,000 crore. The Haldiram's family is looking to sell only a 51% stake but the current discussions with Blackstone are likely to see a stake sale of around 74%.

  • Sharekhan retains its 'Buy' call on Bajaj Finance with a target price of Rs 9,300 per share, indicating a potential upside of 31.4%. The brokerage remains confident in the stock due to its strong AUM growth led by diverse product offerings, customer acquisition, and cross-selling abilities. It expects the company's revenue to grow at a CAGR of 15.8% over FY25-26.

  • NLC India is rising as it acquires its second commercial coal mine block, with a total coal reserve of approximately 1,377 million tonnes, at Machhakata, Odisha.

  • Larsen & Toubro's renewables business bags orders worth Rs 10,000-15,000 crore from a Middle East client to set up two solar power plants with a cumulative capacity of 3.5 GW.

  • Reports suggest that 39.2 lakh shares (around 1.3% equity) of Swan Energy, amounting to Rs 261 crore, have changed hands in a block deal.

  • Union Bank of India's Q1FY25 deposits rise 8.5% YoY to Rs 12.2 lakh crore, and advances increase by 11.5% YoY to Rs 9.1 lakh crore. The bank's domestic CASA deposits grow by 3.8% YoY.

  • Welspun Corp invests in its subsidiary, Bhargavi Renewable, a special purpose vehicle (SPV), to provide 15.5 MWp of ground-mounted solar power to the company and its subsidiaries. The company agrees to invest up to Rs 3.5 crore, holding up to 22.7% equity share capital.

  • Dabur India rises sharply following a positive Q1FY25 update. The company anticipates mid to high single-digit consolidated revenue growth, driven by a strong momentum in the food and healthcare segments.

  • Gillette India appoints Kumar Venkatasubramanian as Managing Director for a period of five years.

  • India's defence sector has surged by 200% over the past year, outpacing major sectors and benchmark indices. According to a Nomura report, defence spending has grown 10% annually in the past decade, exceeding the global average of 3%. The government aims for self-reliance in manufacturing, backing the sector with policy reforms and higher annual defense expenditure. Defence exports have soared from Rs 686 crore in 2013-14 to Rs 21,083 crore this year.

  • Coforge is rising as it enters a share purchase agreement (SPA) with Cigniti Technologies to buy an additional 76.4 crore shares (or a 28% stake) for Rs 1,072 crore.

  • IndusInd Bank's Q1FY25 net advances rise 16% YoY to Rs 3 lakh crore, and deposits grow by 15% YoY to Rs 3.5 lakh crore. The bank's CASA ratio stands at 39.9%.

  • Anil Kumar Goel cuts stake in Dwarikesh Sugar Industries to below 1% in Q1FY25. He held a 4.2% stake in the company in Q4FY24.

  • Investec initiates a ‘Buy’ rating on NHPC, Inox Wind, Kalpataru Projects, KEC International, and a ‘Hold’ on JSW Energy. The brokerage expects strong power demand until FY32. It notes the focus on thermal energy to meet rising demand, and expects the wind and transmission space to witness a fresh round of capex.

  • Dolly Khanna adds Tinna Rubber and Infrastructure to her portfolio in Q1FY25. She buys a 1% stake in the company.

  • Apcotex Industries is falling as it halts production operations at its manufacturing plant in Taloja due to heavy rainfall.

  • Titan's revenue grows by 9% YoY in Q1FY25, owing to improvements in the jewellery, watches & wearables, emerging businesses, and CaratLane segments. It appears in a screener of stocks with increasing return on capital employed (RoCE) over the past two years.

  • Man Industries (India) wins an order worth Rs 1,850 crore from an international oil and gas company to supply high value-added line pipes for a mega offshore project.

  • Nifty 50 was trading at 24,299.10 (-24.8, -0.1%), BSE Sensex was trading at 79,915 (-81.6, -0.1%) while the broader Nifty 500 was trading at 23,016.35 (28.7, 0.1%).

  • Market breadth is surging up. Of the 2,029 stocks traded today, 1,383 were on the uptrend, and 614 went down.

Riding High:

Largecap and midcap gainers today include Rail Vikas Nigam Ltd. (565.90, 15.2%), One97 Communications Ltd. (472.35, 8.2%) and Indian Railway Finance Corporation Ltd. (202.02, 7.3%).

Downers:

Largecap and midcap losers today include Au Small Finance Bank Ltd. (642.70, -4.5%), Bank of Baroda (262.35, -4.2%) and Persistent Systems Ltd. (4,586.30, -3.9%).

Movers and Shakers

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

Top high volume gainers on BSE included Rail Vikas Nigam Ltd. (565.90, 15.2%), Rashtriya Chemicals & Fertilizers Ltd. (228.39, 12.0%) and Indian Railway Finance Corporation Ltd. (202.02, 7.3%).

Top high volume losers on BSE were Au Small Finance Bank Ltd. (642.70, -4.5%), Titan Company Ltd. (3,156.20, -3.5%) and Shoppers Stop Ltd. (766, -2.8%).

Metro Brands Ltd. (1286.05, 5.6%) was trading at 50.7 times of weekly average. Gujarat Mineral Development Corporation Ltd. (421.85, 5.1%) and Great Eastern Shipping Company Ltd. (1,343.20, 6.0%) were trading with volumes 13.8 and 9.1 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

47 stocks made 52 week highs,

Stocks touching their year highs included - Aegis Logistics Ltd. (926.75, 0.5%), Aurobindo Pharma Ltd. (1,305.40, 0.1%) and BASF India Ltd. (5,599.15, 4.1%).

6 stocks climbed above their 200 day SMA including ITC Ltd. (443.60, 2.3%) and HDFC Life Insurance Company Ltd. (620.90, 2.2%). 7 stocks slipped below their 200 SMA including Au Small Finance Bank Ltd. (642.70, -4.5%) and Eureka Forbes Ltd. (477, -3.2%).

 
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The Baseline
05 Jul 2024
Five Interesting Stocks Today - July 5, 2024

1. Solar Industries India:

This industrial products company rose by 23.7% over the past week as its subsidiary Economic Explosives(EEL) launched three new explosives, SEBEX-2, SITBEX-1 and SIMEX-4 last week. These explosives are expected to improve the effectiveness of warheads, aerial bombs, underwater weapons etc. Reports suggest that the Indian Navy has completed certification tests for all three explosives and have given orders for the same. 

For FY24, the company’s net profit increased by 10.4% YoY to Rs 835.9 crore, while its revenue declined by 12.1% YoY due a Rs 40 crore hit from hyperinflation in Ghana and Turkey, and currency depreciation (55% in Q4FY24) in Nigeria. The stock shows up in a screener for stocks with strong momentum.

In FY24, the company’s order book surged by 74.2% YoY to Rs 5,129 crore from Rs 2,944 crore in FY23. The defense order book was at ~Rs 2,600 crore out of which Rs 1,499 crore (57.7%) were export orders. For FY25 the company’s management expects defense revenue to rise 3X and domestic explosives volume to rise by 15%. On the FY24 results Manish Nuwal, the Managing Director & CEO, is bullish about growth, saying: “In FY24, improved domestic business and increased defense sales boosted margins, achieving a record EBITDA of Rs 1,414 crore. We plan a Rs 800 crore capital expenditure in FY25 to expand production capacities, particularly in defense and explosives..” The company is investing in counter drone technology and rocket systems.

Solar Industries says that it is in the “final stages” of negotiations for securing orders for Pinaka (multi-barrel rocket launcher) from the Indian Army and is already supplying the Nagastra1 exploding drones to the Indian Army. 

ICICI Securities has given Solar Industries India a “Buy” rating, with a target price of Rs 13,250. The brokerage, noting the improved prospects, has raised its P/E multiple to 65x (earlier 55x) based on FY26 EPS, resulting in an upgraded target price from the previous level of Rs 11,000.

2. Larsen & Toubro (L&T):

This construction and engineering firm surged 6.6% in the past month after winning significant (Rs 1,000 to 2,500 crore) as well as large (Rs 2,500 to 5,000 crore) orders from ONGC, including pipeline replacements and new developments off India’s west coast. Its power transmission & distribution arm also won a significant order to build a 185MW solar plant.

In FY24, L&T posted a revenue growth of 20.9% YoY to Rs 2,25,271 crore, with net profit growth of 24.7% YoY at Rs 13,059 crore. Trendlyne’s Forecaster estimates revenue growth of 11% YoY in Q1 FY25. The company appears in a screener of stocks with highest FII holdings.

Order inflows for L&T surged 31.4% YoY to Rs 3,02,812 crore, with 54% being international orders, up from 38% a year ago. Its energy segment’s contribution to total order inflow increased from 13% in FY23 to 24% in FY24.CFO Shankar Raman said, “L&T expects a 10% growth in domestic order inflow for FY25 due to the government’s investment-first approach.”

Whole-time Director & President of Energy at L&T, Subramanian Sarma said, “I think all in all, in both our core markets in the Middle East and West Asia, as well as in India, we see a large pipeline in the next 6 to 12 months.” He also highlighted the company’s focus on energy transition and green development.

ICICI Direct maintains a ‘Buy’ rating on L&T because of the company’s focus on improving ROE to 18% by FY26 from 14.9% in FY24. They aim to achieve this through profitable bidding, on-time execution and monetising non-core assets. With a target price of Rs 4,300, L&T has a potential upside of 18.6%.

3. Star Health and Allied Insurance:

This general insurance company has risen by 10.7% over the past week after outlining its growth plans at its analyst day. The company aims to double its gross written premium (GWP) to Rs 30,000 crore and triple its profit after tax (PAT) to Rs 2,500 crore by FY28.

Star Health witnessed strong growth in FY24, with a 37% YoY increase in net profit to Rs 845 crore. The company’s GWP grew by 18% YoY, benefiting from a strong market share in retail health and focused efforts on the employer-employee group segment, particularly in SMEs and MSMEs. Investments in technology, such as AI-powered fraud detection, have led to improved claim turnaround times and operational efficiency.

During the year, it achieved a 40% growth in digital channels, with  customer-centric initiatives to improve retention and drive future growth.The company plans to expand its distribution network by adding 1 lakh agents by FY25, improving digital capabilities, and partnerships with banks, NBFCs, and corporate agents. Star Health has a strong solvency ratio of 2.2, supporting their financial strength and growth potential. CEO Anand Roy says, “We are focusing on balanced growth, splitting 50-50 between value and volume. We are expanding our agency network, digital channels, and strengthening group health. We expect a 15-25% price hike in FY25. Compared to peers, we hold a 33% market share and lead the retail health segment.”

Motilal Oswal maintains a "Buy" rating on the stock with a target price of Rs 730. This indicates a potential upside of 24.7%. The brokerage believes Star Health's focus on high-quality business, stricter underwriting standards, and planned price increases for key products position them well to achieve their growth targets.

4. Cello World:

This household products manufacturer rose 3.1% and touched a 52-week high of Rs 1,025 per share on Thursday. This comes after it announced the launch of its Rs 775 crore qualified institutional placement (QIP). Cello plans to issue 86.5 lakh equity shares at a floor price of Rs 896.9. 

The funds raised from the QIP issue will be used for various purposes, including investment in Cello Consumerware. The investment will help set up a new facility to produce stainless-steel bottles, plastic insulated ware, and household articles. Cello World will also use the funds to repay debt, and for working capital requirements.

Over the past month, Cello World has risen by 16.3%. During FY24, the company’s revenue grew by 11.3% YoY to Rs 2,000.3 crore, driven by growth in the consumer ware segment. The segment contributes 66.2% to the total revenue. Its net profit rose 24% YoY. 

Cello World leads in terms of market capitalization in the household products industry. The company’s peers include Carisyl and smaller players like Hardwyn India and Interiors & More. Its PE TTM stands at 63.7, compared to the industry’s 60.8.  

During FY24, the company launched a new facility in Rajasthan with an annual capacity of around 20,000 tonnes, to expand the glassware segment. The capex for the project is Rs 250 crore. It is targeting Rs 460–475 crore in revenue from glassware and opalware in FY25. Cello plans to premiumize some of its product lines and also expand its existing portfolio by developing a new range of products. For FY25, Cello targets a 15–17% revenue growth, with EBITDA margins around 24–26%.

Motilal Oswal believes consumption trends will remain muted in Q1 in the consumer discretionary space but sees a gradual volume recovery. The brokerage expects improved consumer demand later in the year, helped by a normal monsoon, improving macros, and continued government spending. 

The brokerage has a ‘Buy’ rating on Cello World with a target price of Rs 1,090. The brokerage is optimistic due to the company’s plans for new product launches, inorganic acquisitions in existing segments, and expansion of the distribution network. However, the company is in the PE Strong Sell Zone indicating that it is currently trading above its historical PE.

5. KEC International:

This heavy electrical equipment manufacturer has risen 29.2% in the past month and hit its all-time high of Rs 968.8 on Wednesday. The price rise came after multiple order wins. It received orders worth Rs 1,017 crore for a solar PV project in Rajasthan and an EPC project in the Middle East. It also got Rs 1,025 crore worth of orders from India, Africa, and the Americas., it also announced that it had won additional orders worth Rs 2,063 crore in multiple verticals varying from T&D (transmission and distribution), railways, and cables to civil business work.

KEC International’s current order book stands at Rs 38,000 crore, approximately 2x the FY24 revenue. It has a bid pipeline of Rs 1.3 lakh crore. The management also expects an order intake of Rs 25,000 crore in FY25. Chief Financial Officer Rajeev Aggarwal says, “We expect a 15% growth in turnover and guide for 7.5% margins for FY25 and close to double-digit margins in FY26.” The management expects its peak debt to remain at the current level of around Rs 5,000 crore; however, it expects the finance charge as a percentage of revenue to decline to 2.5% from over 3% in FY24.

Trendlyne Forecaster estimates KEC International’s net profit to rise 4.3% in Q1FY25. In FY24, the company’s profit grew by 97% YoY to Rs 346.8 crore, while its revenue improved by 15.3% YoY. Its EBITDA margin increased by 130 basis points YoY to 6.1%. However, it missed Trendlyne Forecaster’s net profit estimate by 7.9%.

Prabhudas Lilladher maintains a ‘Hold’ call on KEC International given its healthy execution momentum and revenue visibility from non-T&D segments. The brokerage expects growth to be driven by domestic T&D and civil businesses and expects international T&D and railways to remain soft in FY25. The company appears in a screener for stocks with increasing shareholding by foreign investors and/or institutions.

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
05 Jul 2024
Market closes flat, RVNL signs MoU with Delhi Metro Rail Corp
By Trendlyne Analysis

Nifty 50 closed at 24,323.85 (21.7, 0.1%) , BSE Sensex closed at 79,996.60 (-53.1, -0.1%) while the broader Nifty 500 closed at 22,987.65 (73.5, 0.3%). Market breadth is in the green. Of the 2,178 stocks traded today, 1,240 were on the uptrend, and 919 went down.

Indian indices closed flat after switching between losses and gains throughout the day. The volatility index, Nifty VIX, fell 1.2% and closed at 12.7 points. Rail Vikas Nigam touched an all-time high of Rs 498.5 as it signed a Memorandum of Understanding (MoU) with Delhi Metro Rail Corp (DMRC) to participate in upcoming projects in India and abroad as a project service provider.

Nifty Smallcap 100 and Nifty Midcap 100 closed in the green. Nifty FMCG and Nifty PSU Bank closed higher.  According to Trendlyne’s Sector dashboard, Oil & Gas emerged as the top-performing sector of the day, with a rise of 2.2%. 

European indices traded flat or higher, while major Asian indices closed mixed. Most US index futures traded higher, indicating a positive start to the trading session. Investors look ahead to the release of the key monthly labor market report later today. Brent crude oil futures traded higher.

  • Relative strength index (RSI) indicates that stocks like Garden Reach Shipbuilders & Engineers, Mazagon Dock Shipbuilders, Fine Organic Industries, and Persistent Systems are in the overbought zone.

  • Reliance Infrastructure's arm Mumbai Metro One(MMOPL) to reportedly receive a one-time settlement consideration from Maharashtra for its Rs 1,700 crore debt owed to lenders.

  • GPT Infraprojects surges to its all-time high of Rs 157 per share as its board of directors approves raising funds worth Rs 175 crore through a qualified institutional placement (QIP) or other modes.

  • Steel Authority of India rises sharply as the Steel Executives Federation of India proposes merging SAIL with Rashtriya Ispat Nigam (RINL), Ferro Scrap Nigam (FSNL), and Nagarnar steel plant to achieve capacity expansion targets and address resource challenges.

  • Bajaj Auto is rising as it launches the world's 1st CNG bike, 'Bajaj Freedom 125'. The starting price of the bike is Rs 95,000. The bike can operate on petrol and compressed natural gas (CNG), allowing riders to switch between the two.

  • Emcure Pharmaceuticals' Rs 1,952 crore IPO gets bids for 27.7X the available 1.4 crore shares on offer on the third day of bidding. The retail investor quota gets bids for 5.9X the available 68.8 lakh shares on offer.

  • Bansal Wire Industries' Rs 745 crore IPO gets bids for 20.4X the available 2.2 crore shares on offer on the third day of bidding. The retail investor quota gets bids for 10.6X the available 1.1 crore shares on offer.

  • Foreign institutional investors divest Rs 2,450.7 crore in the equity market over the past week, according to Trendlyne's FII dashboard. Index options witness the highest outflow of Rs 66,912.9 crore from foreign investors. Meanwhile, mutual funds are net buyers in the equity market, injecting Rs 4,532.8 crore during the same period.

  • Nirmal Bang initiates coverage on HUDCO with a target price of Rs 375. The brokerage notes that the company has a strong relationship with state governments and their agencies, which gives them a better chance to provide loans. It sees growth opportunities in the infra lending space, improvement in NIMs and strong capital position.

  • Ahluwalia Contracts (India) rises sharply to its all-time high of Rs 1,542.4 as it secures an order worth Rs 572 crore from the Airports Authority of India for the development of a new civil enclave at Darbhanga Airport in Bihar.

  • Thermax rises as its arm, Thermax Babcock & Wilcox Energy Solutions, wins an order worth Rs 513 crore from Jindal Energy Botswana to supply two 550 TPH boilers.

  • Rail Vikas Nigam rises sharply to its all-time high of Rs 455 as it signs a Memorandum of Understanding (MoU) with Delhi Metro Rail Corp (DMRC) to participate in upcoming projects in India and abroad as a project service provider.

  • Indian markets have surged 11% in the past month after the election results on June 4, led by renewed foreign investor interest. This marks the strongest post-election rally since May 2019 and May 2014. In May 2019, markets saw a slight 0.1% dip one month after elections, while in May 2014, they surged 5.8%. Sunil Subramaniam, MD of Sundaram Mutual Fund, predicts the Sensex could reach 90,000 by year-end, driven by increased foreign investments.

  • Kalyan Jewellers India rises as its India operations report a revenue growth of 29% YoY in Q1FY25, driven by healthy same-store sales growth. Its Middle East business also records a 16% YoY revenue increase. The company appears in a screener of stocks where mutual funds increased their holding in the past quarter.

  • RailTel Corp of India rises as it receives a work order worth Rs 23.9 crore from Webel Technology to upgrade and enhance existing IT and non-IT DC infrastructure at the West Bengal State Data Centre (WBSDC) in Monibhandar.

  • Raymond surges as it announces a vertical demerger of its real estate business into its wholly owned subsidiary, Raymond Realty. The new entity will seek automatic listing on stock exchanges, and each Raymond shareholder will receive one share of Raymond Realty for every share held in Raymond.

  • Titan Co is falling as Kotak Institutional Equities downgrades its rating to ‘Reduce’ and lowers the target price to Rs 3,075. The brokerage anticipates an increase in competitive intensity with the launch of Aditya Birla Group’s Novel Jewels. The brokerage sees multiple margin headwinds, and adds that the risk-reward is unfavourable. It cuts the EPS estimates by 5-6% for FY25-27E.

  • Mahindra Lifespace Developers rises sharply as it bags a third redevelopment project in Mumbai with an estimated gross development value (GDV) of Rs 1,800 crore. The company also acquires a land parcel in South Bengaluru with a potential GDV of Rs 250 crore.

  • HDFC Mutual Fund sells a 0.9% stake in Restaurant Brands Asia for approx Rs 50.3 crore in a bulk deal on Thursday.

  • Macrotech Developers' Q1FY25 pre-sales rise 20% YoY to Rs 4,030 crore. The collections for the quarter increase by 12% YoY to Rs 2,690 crore.

  • BEML hits a new 52-week high at Rs 5,488 today, following reports indicating the company's progress in delivering all ten trainsets by year-end and seeking a repeat order. This is crucial as the Indian Railways aims to complete trials of the first Vande Bharat sleeper rakes by August.

  • Radhakishan Damani buys a 2% stake in VST Industries in Q1FY25. He now holds a 34.7% stake in the company.

  • Sunil Singhania cuts stake in PSP Projects to below 1% in Q1FY25. He held a 1.5% stake in the company in Q4FY24.

  • Angel One is rising as its average daily turnover (ADTO) grows by 92.7% YoY to Rs 43.8 lakh crore in Q1FY25. Its client base also improves by 64.2% YoY to 2.5 crore, with total order numbers rising by 85.9% YoY in the same quarter. The company appears in a screener of stocks where mutual funds increased their holding in the past month.

  • Ircon International rises sharply as its joint venture (JV) with Paras Railtech and PCM Strescon Overseas Ventures bags an order worth Rs 750.8 crore from Rail Vikas Nigam. The orders are for the design, supply, installation, testing, and commissioning of broad gauge ballastless track (BLT), supply of ballast, and installation of track in Uttarakhand.

  • Nifty 50 was trading at 24,210.70 (-91.5, -0.4%), BSE Sensex was trading at 79,794.51 (-255.2, -0.3%) while the broader Nifty 500 was trading at 22,881.75 (-32.5, -0.1%)

  • Of the 1,950 stocks traded today, 1,310 were on the uptick, and 603 were down.

Riding High:

Largecap and midcap gainers today include Rail Vikas Nigam Ltd. (491.05, 17.3%), YES Bank Ltd. (26.64, 11.2%) and CG Power and Industrial Solutions Ltd. (772.20, 6.9%).

Downers:

Largecap and midcap losers today include HDFC Bank Ltd. (1,648.10, -4.6%), PB Fintech Ltd. (1,379.45, -2.9%) and Vedant Fashions Ltd. (1,095.85, -2.7%).

Volume Shockers

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

Top high volume gainers on BSE included Rail Vikas Nigam Ltd. (491.05, 17.3%), YES Bank Ltd. (26.64, 11.2%) and Vardhman Textiles Ltd. (535.90, 10.5%).

Top high volume loser on BSE was Medplus Health Services Ltd. (669.30, -3.0%).

Ircon International Ltd. (307.75, 10.0%) was trading at 14.7 times of weekly average. Blue Star Ltd. (1,705.25, 6.2%) and Raymond Ltd. (3,229.50, 9.9%) were trading with volumes 14.5 and 14.1 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

59 stocks took off, crossing 52 week highs,

Stocks touching their year highs included - Aegis Logistics Ltd. (922, 3.5%), Aurobindo Pharma Ltd. (1,303.55, 3.9%) and BASF India Ltd. (5,379.10, 3.0%).

6 stocks climbed above their 200 day SMA including Westlife Foodworld Ltd. (853.60, 3.7%) and Hatsun Agro Products Ltd. (1,106.20, 2.5%). 3 stocks slipped below their 200 SMA including APL Apollo Tubes Ltd. (1,570, -0.7%) and Bajaj Finance Ltd. (7,138, 0.4%).

 
Trendlyne Marketwatch
Trendlyne Marketwatch
04 Jul 2024
Market closes higher, Mazagon Dock secures 'Navratna' status
By Trendlyne Analysis

Nifty 50 closed at 24302.15 (15.7, 0.1%) , BSE Sensex closed at 80049.67 (62.9, 0.1%) while the broader Nifty 500 closed at 22914.20 (63, 0.3%). Market breadth is in the green. Of the 2177 stocks traded today, 1138 showed gains, and 1014 showed losses.

Indian indices closed in the green, after seeing volatility throughout today's trading. The Indian volatility index, Nifty VIX, fell 2.7% and closed at 12.8 points. Mazagon Dock surged to it's all-time high of Rs 5,550 per share after it secured the 'Navratna' status. With this the company has joined the Rs 1 lakh crore market capitalization club.

Nifty Smallcap 100 and Nifty Midcap 100 closed in the green taking cues from the benchmark index. Nifty High Beta 50 and S&P BSE SME IPO were among the top index gainers today. According to Trendlyne’s Sector dashboard, Healthcare Equipment & Supplies emerged as the best-performing sector of the day, with a jump of over 2.8%.

Asian indices closed in the green while European indices are trading higher. US index futures traded flat, indicating a cautious start to the trading session. Brent crude oil futures are trading down by 0.4% as the soft U.S. economic data raised some concerns over long-term demand.

  • JK Cement sees a long buildup in its July 25 future series as its open interest rises 13.4% with a put-call ratio of 0.4.

  • UltraTech is reportedly in advanced talks to acquire Orient Cement (OCL). This move aims to strengthen UltraTech's market position in southern and western India amid the ongoing sector consolidation efforts.

  • Tata Motors' arm, Jaguar Land Rover's total wholesales in the UK rises 5.3% YoY to 6,421 units in June. Land Rover wholesales grow by 13.2% YoY to 5,246 units.

  • Power stocks have delivered strong performance due to power shortages amid weak monsoons, rising agricultural demand, and air-conditioning usage. The BSE Power index has surged 100% in a year, with 10 of 13 stocks yielding substantial returns. HSBC Securities expects valuations to stabilise post-summer amid capacity expansions, efficient management, La Nina (cooling of sea-surface temperatures), and a high base effect.

  • Mazagon Dock surges to its all-time high of Rs 5,550 per share after it secures the 'Navratna' status, granting it greater flexibility and autonomy in operations. This milestone also helps the company to join the Rs 1 lakh crore market capitalisation club.

  • Emcure Pharmaceuticals' Rs 1,952 crore IPO gets bids for 3.3X the available 1.4 crore shares on offer on the second day of bidding. The retail investor quota gets bids for 2.8X the available 68.8 lakh shares on offer.

  • Bansal Wire Industries' Rs 745 crore IPO gets bids for 3.8X the available 2.2 crore shares on offer on the second day of bidding. The retail investor quota gets bids for 4.7X the available 1.1 crore shares on offer.

  • Reliance Industries’ retail arm, Reliance Retail Ventures, reportedly plans to launch Chinese fast fashion brand Shein in India in the coming weeks. The products will be sold on Reliance Retail’s app and physical stores.

  • Sun Pharma rises sharply after the European Medicines Agency (EMA) validates the marketing authorization application (MAA) for Nidlegy, submitted with Philogen S.p.A. on June 3. Nidlegy is partnered with Sun Pharma to treat skin cancers in Europe, New Zealand, and Australia.

  • Gujarat Pipavav's containers carried falls 17.1% YoY to 165 20-foot equivalent units (TEU) in Q1FY25. Its container trains also decline by 8.2% YoY to 480 during the quarter.

  • ITD Cementation falls after its promoter, Italian Thai Development Public Co, which owns a 46.6% stake, considers divesting its investments in the company.

  • Max Estates is rising as it receives approval from the New Okhla Industrial Development Authority (NOIDA) to purchase an additional 20,000 square metres of floor area ratio (FAR) for its residential project in Noida.

  • Key vegetable prices are expected to remain high till September amid heatwaves and lower market arrivals and cool down as fresh supplies arrive. IMD forecasts July rainfall to exceed the long-term average by over 106%. Kaushik Das, Chief Economist at Deutsche Bank, expects food and beverage prices to increase by 2.4% MoM and 8% YoY in June, up from 0.7% and 7.9% in May, respectively. He predicts June CPI inflation at around 5% due to these higher prices.

  • Bandhan Bank's loans and advances rise 21.8% YoY to Rs 1.3 lakh crore in Q1FY25, while deposits increase by 22.8% YoY. Its CASA ratio stands at 33.4%, down 2.6 percentage points.

  • Marico partners with Kaya, a dermatological solutions provider, to manage sales and marketing of Kaya's 75+ personal care products. This collaboration has led to Kaya's stock hitting a 10% upper circuit.

  • Edelweiss retains its 'Buy' call on Suraj Estates Developers with a target price of Rs 757 per share. This indicates a potential upside of 22.3%. The brokerage believes the company will see new product additions once it launches most of its existing projects considering its land reserves, strong brand value and improved balance sheet. It expects the company's pre-sales to grow at a CAGR of 35% over FY25-27.

  • Anand Roy, CEO of Star Health and Allied Insurance Co, projects a gross written premium of Rs 18,000 crore in FY25. He highlights the company’s target to achieve growth of 18%, compared to the general insurance industry’s growth of 15-17%. Roy adds that the retail book will continue to drive growth for the company.

  • Inox Wind (IWL) surges as its promoter, Inox Wind Energy, infuses Rs 900 crore via the sale of equity shares of IWL through block deals. The funds will be utilised to reduce its external term debt to achieve a net debt-free status.

  • Bajaj Finance's AUM grows by 31% YoY to Rs 3.5 lakh crore in Q1FY25. New loans booked also improve by 10% YoY to 11 million in the quarter. It appears in a screener of stocks with zero promoter pledges.

  • Vedanta's Q1FY25 aluminium production rises 3% YoY to 5.9 lakh tonnes, while saleable steel production grows by 10% YoY to 3.5 lakh tonnes. Its oil and gas output falls 17% YoY to 1.1 lakh average daily gross operated production.

  • Kotak Institutional Equities upgrades its rating on Lupin to 'Add' with a higher target price of Rs 1,805. The brokerage believes the firm's strong US trajectory will continue in FY25-26, along with robust earnings in upcoming quarters. It raises FY25-27 EPS estimates by 3-16% on higher US sales and EBITDA margins.

  • Brigade Enterprises rises as it announces the development of an eight-acre residential project in Bengaluru, with a gross development value of Rs 1,100 crore.

  • GE T&D India surges to its all-time high of Rs 1,721 per share as it bags an order worth 64 million Euros (approx. Rs 576.6 crore) from Grid Solutions SAS for supplying and supervising high-voltage products.

  • Cello World surges to its all-time high of Rs 970 per share as its board of directors approves the issuance of shares worth Rs 775 crore through a qualified institutional placement (QIP). The board sets a floor price of Rs 896.1 per share for the QIP.

  • Nifty 50 was trading at 24,347.40 (60.9, 0.3%), BSE Sensex was trading at 80,321.79 (335.0, 0.4%) while the broader Nifty 500 was trading at 22,925.65 (74.5, 0.3%).

  • Market breadth is surging up. Of the 1,970 stocks traded today, 1,573 were gainers and 373 were losers.

Riding High:

Largecap and midcap gainers today include Lupin Ltd. (1,759.30, 7.9%), Solar Industries India Ltd. (12,170.25, 6.1%) and Bajaj Holdings & Investment Ltd. (9,841, 5.9%).

Downers:

Largecap and midcap losers today include PB Fintech Ltd. (1,420.25, -2.9%), HDFC Bank Ltd. (1,727.15, -2.4%) and FSN E-Commerce Ventures Ltd. (171.39, -2.1%).

Crowd Puller Stocks

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

Top high volume gainers on BSE included Galaxy Surfactants Ltd. (3,114.70, 12.4%), Honasa Consumer Ltd. (486.70, 11.9%) and AstraZeneca Pharma India Ltd. (7,128.85, 11.4%).

Top high volume loser on BSE was Ingersoll-Rand (India) Ltd. (4,547.25, 0.0%).

Inox Wind Ltd. (157.01, 10.2%) was trading at 19.3 times of weekly average. Rites Ltd. (747.70, 7.1%) and Lloyds Metals & Energy Ltd. (775, 4.9%) were trading with volumes 15.4 and 6.7 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

51 stocks overperformed with 52 week highs,

Stocks touching their year highs included - Bajaj Holdings & Investment Ltd. (9,841, 5.9%), Indus Towers Ltd. (404.05, 1.9%) and Biocon Ltd. (361.30, 0.0%).

12 stocks climbed above their 200 day SMA including Ipca Laboratories Ltd. (1,177.80, 2.1%) and Gujarat Mineral Development Corporation Ltd. (397.40, 1.5%). 5 stocks slipped below their 200 SMA including Bajaj Finance Ltd. (7,107.05, -2.1%) and Hatsun Agro Products Ltd. (1079, -2.0%).