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Trendlyne Marketwatch
Trendlyne Marketwatch
06 May 2024
Market closes flat, CG Power's net profit plunges 45.2% YoY to Rs 233.6 crore in Q4FY24

Nifty 50 closed at 22,442.70 (-33.2, -0.2%), BSE Sensex closed at 73,895.54 (17.4, 0.0%) while the broader Nifty 500 closed at 20,864.95 (-94.6, -0.5%). Market breadth is overwhelmingly negative. Of the 2,111 stocks traded today, 557 were in the positive territory and 1,523 were negative.

Indian indices closed marginally lower after opening in the green. The Indian volatile index, Nifty VIX, rose by 13.2% and closed at 16.6 points. Titan closed 7.2% lower after its net profit missed Forecaster estimates by 20.5% despite growing by 5.6% YoY to Rs 771 crore in Q4FY24. 

Nifty Smallcap 100 and Nifty Midcap 100 closed in the red, underperforming the benchmark index. Nifty IT and Nifty Realty closed higher than their Friday close. According to Trendlyne’s sector dashboard, Realty emerged as the best-performing sector of the day, with a rise of 1.5%. 

Major Asian indices trade in the green, except for Hong Kong’s Hang Seng and India’s BSE Sensex closing flat. European indices traded higher amid positive global cues. US index futures traded in the green, indicating a positive start to the trading session. Brent crude oil futures traded higher after posting 6% weekly losses in the previous week.

  • Money flow index (MFI) indicates that stocks like Escorts Kubota, Ajanta Pharma, Timken India and KFIN Technologies are in the overbought zone.

  • CG Power & Industrial Solutions' net profit plunges by 45.2% YoY to Rs 233.6 crore in Q4FY24 due to rising costs of raw materials and employee benefits expenses. However, revenue grows by 15.2% YoY to Rs 2,191.7 crore on the back of the power systems and industrial systems segments. It appears in a screener of stocks with rising net cash flow and cash from operating activities.

  • One97 Communications hits its lower circuit as President and Chief Operating Officer Bhavesh Gupta tenders his resignation, effective May 31, 2024.

  • Nishant Arya, VC and MD of JBM Auto, highlights strong growth in the e-bus division. He expects revenue of Rs 6,500 crore in FY25, with margins at 12%. He adds that the company targets to deliver 2,500 buses in FY25, compared to 1,000 buses in FY24.

  • Indian Bank's Q4FY24 net profit rises 55.3% YoY to Rs 2,247 crore, while total income improves 18.6% YoY. The bank's net non-performing assets fall 45% YoY. The stock appears in a screener for companies with low debt.

  • Edelweiss keeps its 'Buy' rating on CIE Automotive India with an upgraded target price of Rs 657 per share. This indicates a potential upside of 35.9%. The brokerage believes that the company continues to enhance its operations through revenue diversification, expansion into niche segments, and technological advancements. It also believes that the company's acquisitions will expand its product and client portfolio.

  • Indegene's Rs 1,841.8 crore IPO gets bids for 0.7X the available 2.9 crore shares on offer on the first day of bidding. The retail investor quota gets bids for 0.9X the available 1.5 crore shares on offer.

  • Morgan Stanley upgrades Deepak Nitrite to ‘Overweight’ and raises the target price to Rs 2,985. The brokerage expects the company’s new investment cycle to drive the next leg of re-rating. It believes Deepak Nitrite will double its base earnings by 2028.

  • CarTrade Tech surges as its net profit grows by 50.6% YoY to Rs 22.5 crore in Q4FY24. Revenue increases by 51.5% YoY to Rs 145.3 crore, owing to the consumer and classified segments. It shows up in a screener of stocks with the highest foreign institutional investor (FII) holding.

  • Realty stocks like DLF, Macrotech Developers, Prestige Estates Projects, Godrej Properties, and Sobha are rising in trade. The broader Nifty Realty index touches its 52-week high of 985.5 today.

  • HCL Technologies enters a strategic collaboration with Amazon Web Services to explore and develop GenAI-led use cases, proofs of concept, tools and solutions.

  • Kotak Mahindra Bank surges as its net profit grows by 18.2% YoY to Rs 4,133.3 crore in Q4FY24. Revenue increases by 25.3% YoY to Rs 12,307.1 crore, helped by the treasury, corporate and retail banking segments. The bank's asset quality also improves as its gross and net NPAs contract by 39 bps YoY and 3 bps YoY, respectively. It appears in a screener of stocks with increasing revenue for the past eight quarters.

  • Amit Agarwal, Group CFO of Raymond, highlights the strong growth in the branded apparel business, with plans to open 350-400 stores in the next 2-3 years. He expects the ‘Ethnix' brand to drive growth for the lifestyle business. Agarwal adds that the revenue run-rate per year for Raymond’s real estate business will be around Rs 3,500-4,000 crore over the next 2-3 years.

  • JSW Infrastructure plans to invest over Rs 2,500 crore in FY25 to expand its cargo handling capacity. The management estimates to raise capacity by 50% to 258 million tonnes by 2027, with an investment of Rs 14,000 crore.

  • Muthoot Finance's arm Belstar Microfinance files a draft red herring prospectus on Friday. The IPO comprises a fresh issue of equity shares worth Rs 1,000 crore and an offer for sale of up to Rs 300 crore.

  • Indegene raises Rs 548.8 crore from anchor investors ahead of its IPO by allotting 1.2 crore shares to 36 anchor investors at Rs 452 each. Investors include Capital Group, Fidelity Investments, Jupiter Asset Management, and ICICI Prudential Mutual Fund.

  • India’s Services PMI declines to 60.8 in April from 61.2 in March due to a slight slowdown in new export orders. The PMI reading has remained above the 50 mark since August 2021.

  • PSU Banks like Punjab National Bank, Canara Bank, Bank of Baroda and Union Bank of India fall sharply in trade. All constituents of the broader Nifty PSU Bank index are also trading in the red, causing it to plunge almost 4%.

  • CA Basque Investments sells around 2.1% stake (59.4 crore shares) in Yes Bank for approximately Rs 1,441.6 crore in a bulk deal on Friday. Meanwhile, Goldman Sachs (Singapore) buys a 1.3% stake in the company.

  • Tata Technologies falls sharply as its net profit declines 7.6% QoQ to Rs 157.2 crore in Q4FY24 due to rising costs in technology solutions and employee benefits. Revenue grows marginally by 0.9% QoQ to Rs 1,301 crore, helped by improvements in the technology solutions segment. It features in a screener of stocks with medium to low Trendlyne momentum scores.

  • JP Morgan upgrades Avenue Supermarts to 'Overweight' and raises the target price to Rs 5,400. The brokerage highlights the company's strong revenue growth as a positive indicator and expects an improvement in margins. It sees a favourable risk-reward scenario, with the business well-positioned for acceleration.

  • Angel One's April 2024 client base increases by 62.7% YoY to 2.3 crore. Its number of orders rises by 98.4% to 13.6 crore.

  • Force Motors rises as its April 2024 wholesales grow by 43.5% YoY to 2,624 units. Domestic wholesales increase by 36.5% while exports are up 114.5%.

  • Titan falls sharply as its net profit misses Forecaster estimates by 20.5% despite growing by 5.6% YoY to Rs 771 crore in Q4FY24. Revenue increases by 21.9% YoY to Rs 11,229 crore, driven by the watches & wearables, jewellery and eyecare segments. It features in a screener of stocks where mutual funds have decreased their shareholding in the past quarter.

  • Britannia Industries' net profit declines by 3.6% YoY to Rs 538.3 crore in Q4FY24 due to rising raw material costs. Revenue grows by 3.1% YoY to Rs 4,014.1 crore during the quarter. It shows up in a screener of stocks that have underperformed their industry's price change over the past quarter.

  • Nifty 50 was trading at 22,522.80 (47.0, 0.2%), BSE Sensex was trading at 74,189.56 (311.4, 0.4%) while the broader Nifty 500 was trading at 20,983.35 (23.8, 0.1%).

  • Market breadth is in the green. Of the 1,902 stocks traded today, 1,181 were gainers and 637 were losers.

Riding High:

Largecap and midcap gainers today include Godrej Properties Ltd. (2,842.75, 10.6%), Britannia Industries Ltd. (5,061.60, 6.7%) and Supreme Industries Ltd. (5,273.15, 6.4%).

Downers:

Largecap and midcap losers today include Power Finance Corporation Ltd. (437.80, -8.9%), REC Ltd. (516.60, -7.4%) and Titan Company Ltd. (3,280.15, -7.2%).

Volume Shockers

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

Top high volume gainers on BSE included Godrej Properties Ltd. (2,842.75, 10.6%), Brigade Enterprises Ltd. (1,110.05, 8.8%) and Rainbow Childrens Medicare Ltd. (1,571.30, 7.3%).

Top high volume losers on BSE were Titan Company Ltd. (3,280.15, -7.2%), One97 Communications Ltd. (351.40, -5%) and Shyam Metalics and Energy Ltd. (589.65, -4.1%).

Asahi India Glass Ltd. (639.90, 6.1%) was trading at 32.4 times of weekly average. EPL Ltd. (194.50, 7.2%) and Grindwell Norton Ltd. (2,197.25, 3.9%) were trading with volumes 14.2 and 13.7 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

27 stocks hit their 52 week highs, while 2 stocks hit their 52 week lows.

Stocks touching their year highs included - BASF India Ltd. (4,271.25, 5.1%), Escorts Kubota Ltd. (3,474.10, -0.3%) and Fortis Healthcare Ltd. (464, 2.7%).

Stocks making new 52 weeks lows included - Zee Entertainment Enterprises Ltd. (136.40, -4.7%) and Sheela Foam Ltd. (904.05, -0.3%).

14 stocks climbed above their 200 day SMA including Blue Dart Express Ltd. (7,297.90, 7.0%) and Britannia Industries Ltd. (5,061.60, 6.7%). 19 stocks slipped below their 200 SMA including Titan Company Ltd. (3,280.15, -7.2%) and CSB Bank Ltd. (351.35, -3.9%).

 
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The Baseline
03 May 2024, 05:19PM
Five Interesting Stocks Today - May 3, 2024

1. IndiaMART InterMESH:

This software and services company saw an increase of 8.2% in its share price on Thursday following the release of its Q4 and FY24 results. In Q4, the company’s net profit surged by 78.5% YoY to Rs 99.6 crore, beating Trendlyne’s Forecaster estimates by 26%. During the same period, its revenue rose by 30.9% YoY to Rs 391.9 crore, beating Forecaster’s estimates by 23.4%.

Collections in FY24 grew 16% YoY to Rs 480 crore. Within this growth, a 10% increase was attributed to rising average revenue per user (ARPU), while the remaining 6% came from new user additions. The ARPU itself rose by 10.6% YoY to Rs 55,900, as subscribers migrated to higher-priced packages and churn in the gold and platinum tiers decreased. Top-tier subscribers account for above 50% of paid suppliers and approximately 75% of revenue. 

The company's EBITDA margin expanded to 28.1%, compared to 24.6% the previous year, primarily due to reduced sales and marketing costs. Productivity gains from eliminating tier-4 towns and underperforming areas further boosted margins. 

CEO Dinesh Agarwal expressed optimism about IndiaMART's growth potential, noting that the company has only penetrated 40% of his estimated 100 million B2B buyers in India. After a decline in unique business inquiries to 88 million in FY23, inquiries have regained momentum, reaching pre-FY23 levels of 93 million in FY24. Agarwal said, “The company could comfortably exceed 100 million unique business inquiries in FY25.”

Anand Rathi reiterated its ‘Buy’ call on IndiaMART. Analysts at Anand Rathi are positive about the company’s prospects due to its networking effect, negative working capital requirements, asset-light model, and healthy cash balance of Rs 2,340 crore. With a target price of Rs 3,250, IndiaMART InterMESH has a potential upside of 16.1%.

2. Vedant Fashions:

This retailing company has fallen around 1.9% in the past two days after announcing its results. In Q4FY24, Vedant Fashions’ revenue grew by 7.8% YoY, but missed estimates by 2.3%. Its net profit grew by 6.3% YoY to Rs 115.6 crore. However, its EBITDA margins declined by 90 bps YoY to 48.2% during the quarter due to higher raw material costs, finance costs, and depreciation expenses. 

Vedant’s same-store sales growth (SSSG) slipped 3% YoY during the quarter. The company witnessed pressures in Tier 2 and Tier 3 cities due to lower consumer demand. Organized players such as Raymond and Tasva are expanding into Tier 1/2 cities. In addition, new players are also entering the industry. However, Motilal Oswal believes that the company will not lose market share. 

According to Trendlyne’s Technicals, Vedant Fashion’s share price has declined by 28.3%, over the past six months, underperforming the retailing sector by 11.2%. The management highlighted that FY24 performance was impacted due to significantly fewer weddings, muted consumer demand, and the high base last year. Vedant Modi, the Chief Revenue Officer (CRO), during the company’s earnings call said, “Q1FY25 is going to be weak given that there are close to no weddings happening during the quarter. However, Q2 onwards, we are very confident about the business, and that is when things should pick up”.

Vedant Fashion continued its retail expansion by adding three stores during the March quarter and 27 in FY24, compared to 54 stores in FY23. It is now focused on consolidating its smaller stores and moving into larger store formats. Vedant Fashions is also now focusing on the South Indian market. 

Post the company’s performance, ICICI Securities maintains its ‘Add’ rating with a target price of Rs 1,000. The brokerage highlights a slower-than-expected pick-up in consumer demand and rise in competition from branded retailers as key downside risks for the company.

3. ACC:

This cement and cement products manufacturer rose around 5% ahead of its results. It then fell by 2% in the past week post its Q4 numbers release. The company’s share price has increased by 43.3% in the past year, outperforming its industry by 4.8%. In Q4FY24, its profit rose 300% YoY to Rs 944.8 crore, while revenue improved 12.6% YoY to 5,528.5 crore. It beat Trendlyne Forecaster’s net profit estimates by 53.8%. This growth in profitability can be attributed to increased demand, volume expansion, cost reduction, and efficiency improvement efforts. 

Despite an 8% YoY fall in realization due to low cement prices, ACC’s EBITDA margin improved by 5.7 percentage points YoY to 15.5%. Its EBITDA per tonne in FY24 has almost doubled to Rs 830, led by an effort to reduce cost. Raw material and freight costs declined by double digits YoY. CEO Ajay Kapur said, “Securing raw materials at cost-competitive prices, and focused capex will help in cost optimization by 8-10%.”

ACC reported volume growth of 22% YoY to 10.9 mtpa in FY24 (above expectations), thanks to capacity expansions. The company provides long-term visibility on volume growth with its aggressive capacity additions plan. Kapur said, “We are growing stronger over time with our efficiency improvement initiatives. Our current market share is 14% and we target to grow to 20% in FY28.”

The management is positive about the cement industry on the back of the government’s infra push, higher budgetary allocation, green energy transition, demand-supply dynamics, and greater consolidation. They expect higher capacity utilization on demand growth of 8-9%. 

To double its capacity to 140 million tonnes by FY28, the company plans to open 35 new grinding facilities. Post the acquisition in Thoothukudi, Tamil Nadu, it plans new grinding units across Chhattisgarh, Bengal, Maharashtra, Uttar Pradesh, Rajasthan, and Gujarat.

Axis Direct is optimistic about ACC’s volume growth. It expects the firm’s recent launch of a new greenfield integrated unit in Ametha and the complete acquisition of ACCPL to help meet higher cement demand. However, the brokerage is cautious about lower cement prices. The company appears in a screener for stocks with broker price or recommendation upgrades in the past month.

4. MphasiS: 

This IT consulting & software company rose by 2.8% over the past week after it announced its results on 25th April. The firm beat the Trendlyne Forecaster estimates for Q4FY24 for revenue by 1.5%, however missed the net profit estimate by 1.5%. For Q4FY24 the company’s net profit fell by 2.9% YoY to Rs 393.2 crore on the back of rise in finance and depreciation costs, while its revenue rose by 2.1% YoY. The stock shows up in a screener for companies with weak momentum.

The firm’s Total Contract Value (TCV) has declined by 42.7% YoY in Q4FY24 at $177 million. However, the deal landscape has improved overall, especially in the capital market space. Mphasis stands out with the highest revenue concentration from its top ten clients among its peers. This may be now hurting the business, since challenges in the broader economic environment and the trend of insourcing within these top accounts have hindered growth. The revenue from its top client decreased by 4.7% QoQ, while revenues from clients ranked 2nd to 5th declined by 1.2% QoQ. However, large deal wins outside its top 10 clients grew by 73% YoY over FY24.

Citing economic uncertainty, the management has maintained their last year’s margin guidance of 15.25-16.25%. Nitin Rakesh, CEO and MD  of Mphasis said “ Our Total Contract Value for the last four quarters has been around $ 1.38 billion. This quarter, we've seen some pickup in activity, but it's still not fully ramped up. So I think we'll focus on closing the current order book.”

ICICI Securities has maintained a "sell" rating on MphasiS with a price target of Rs 1.950. The brokerage said: “ Although deal conversion is improving and FY25 outlook is positive, these are already built into our estimates. The company’s margin guidance for FY25 was also subpar at 14.6-16%. Factoring in new guidance, we adjust our FY25E/26E EPS by -4.1%/1.9%, factoring in the guided margin. We continue to value the stock on 18x FY26E EPS of Rs 106.”

5. Indian Oil Corp: 

This oil marketing & distribution company’s stock price remained flat at 0.03% over the past week after its decline on Tuesday due to its poor Q4FY24 results was later offset by a price recovery, due to the government’s tax reduction on petroleum crude exports. 

The stock had fallen 4.5% on Tuesday after net profit plunged by 50% YoY to Rs 5,148.9 crore in the quarter, due to a net loss in the petrochemicals segment, as well as higher employee benefits and finance costs. Revenue dropped by 3.1% YoY to Rs 2.2 lakh crore. The share price recovery of  2.7% on Thursday was due to a windfall tax reduction announced by  the Indian government on petroleum crude, which was brought down to Rs 8,400 per metric tonne from Rs 9,6000 per metric tonne. 

The company appears in a screener of stocks underperforming their industry price change in the quarter. Its net profit missed Trendlyne’s Forecaster estimates by 21.6%, while revenue beat Forecaster estimates by 9.4%. Its EBITDA margin contracted by 225 bps YoY to 5.3% due to its gross refining margin (GRM) falling by 44% YoY to $8.4 per barrel. This comes after crude oil prices surged by 16% during Q4FY24. 

Stating its plans for the upcoming financial year, the management says, “We plan to set up a subsidiary to undertake a low carbon, green energy business, with an equity investment of Rs 1,304 crore. We also plan to establish 1 gigawatt (GW) of renewable energy capacity across the country with an investment of 5,215 crore.”

Post results, Nirmal Bang maintains its ‘Sell’ rating on the stock with a target price of Rs 109 per share. This indicates a potential downside of 37.1%. The brokerage expects the company’s refining business to face headwinds due to subdued global macros, as well as growth in EVs and renewable power capacity. It expects the company’s revenue to decline at a CAGR of 5.8% over FY24-26. However, Motilal Oswal thinks otherwise with its ‘Buy’ rating on the stock, as it believes that the refining segment’s performance will remain healthy given the robust oil demand. 

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

 
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The Baseline
03 May 2024, 05:02PM
Which stocks did superstar investors buy in Q4FY24?
By Melissa Koshy

Investments by superstar investors like RARE Enterprises, Ashish Kacholia, Sunil Singhania, and Vijay Kedia are closely tracked by investors for valuable insights about the market. Their buys and sells help investors identify potentially profitable sectors and stocks. Here we look at the buys made by these superstar investors during Q4FY24.

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

In Q4, even superstar investors got a little spooked by the volatile market, and made fewer additions and more stake sales. The chart below shows the changes in superstar investors' current portfolio net worth. Note that net worth reflects both changes in current holdings as well as new buys and sells. 

Some superstars see a fall in their net worth in Q4FY24

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

Sectors preferred by superstars

Industry preferences vary among these investors – RARE Enterprises leans towards the textiles apparels & accessories sector, while Ashish Kacholia and Sunil Singhania favour the general industrials sector. Vijay Kedia’s preferred industry is telecom services. 

RARE Enterprises increases stake in a realty stock

Rakesh Jhunjhunwala’s portfolio, currently managed by Rekha Jhunjhunwala and RARE Enterprises, grew by around 7% QoQ to Rs 51,742.8 crore by the end of Q4FY24. During the January-March quarter, the firm did not add any new stocks to its portfolio and increased its stake in just one company – realty stock Valor Estate (formerly DB Realty), buying a 1.7% stake. It now owns 4.7% of the company. The company’s share price rose by 166.2% over the past year. 

Rare Enterprises buys a 1.7% stake in Valor Estate

Ashish Kacholia adds small and micro-cap companies to his portfolio

Ashish Kacholia’s net worth rose by 5.7% QoQ to Rs 2,920.4 crore in Q4FY24. During the quarter, he added five new stocks to his portfolio. He acquired a 6.5% stake in Cosmic CRF. The iron and steel products manufacturer’s share price has risen by 34.8% in the past six months. He also bought a 3.2% stake in each Walchandnagar Industries (industrial machinery company) and Sanjivani Paranteral (pharma company). 

Ashish Kacholia buys stakes in Cosmic CRF, Man Industries and others in Q4

Kacholia also added Man Industries (India), buying a 2.1% stake in the iron and steel products manufacturer. He also introduced Megatherm Induction, an industrial machinery producer, into his portfolio during the quarter and now holds a 1.7% stake.

The ace investor bought a 0.4% stake in Basilic Fly Studio and now holds a 2.8% in the movies and entertainment company. Kacholia increased his stake in Zaggle Prepaid Ocean Services (IT software and services) to 2.4% by buying 0.2% during the quarter. He also bought an additional 0.12% stake in Brand Concepts, taking his holding to 1.56% in the specialty retail company.

Sunil Singhania’s Abakkus Fund adds a minor stake in Hindware Home Innovation

Sunil Singhania’s Abakkus Fund saw its net worth fall marginally by 0.3% QoQ to Rs 2,831.6 crore in Q4FY24. The fund didn’t make any significant buys and its activity this quarter was limited to adding minor stakes to current holdings. It increased its holdings in household appliances manufacturer, Hindware Home Innovation, to 4.5% from 4.4% held previously. In the past year, its share price has fallen by 8.6%.

Abakkus also added minor stakes in Shriram Pistons & Rings and IIFL Securities. It now holds 2.3% in the industrial machinery company and 3.3% in the capital markets company. 

Vijay Kedia adds three companies to his portfolio

Vijay Kedia’s net worth decreased by 15.8% QoQ to Rs 1,242.7 crore in Q4FY24. Kedia added three new stocks to his portfolio during the quarter. He bought a 2.9% stake in airline company Global Vectra Helicorp during the quarter. Its share price rose by 273.9% in the past year.

Vijay Kedia adds Global Vectra, Mahindra Holidays & Reliance Infra in Q4

The marquee investor now holds a 1% stake in Mahindra Holidays & Resorts India. He had cut his stake in the hotel company to below 1% in Q3FY24. He also added Reliance Infrastructure, an electric utility company, by buying a 1% stake. 

Dolly Khanna adds three new companies to her portfolio

Dolly Khanna’s net worth increased by 15% QoQ in Q4FY24 to Rs 490.5 crore, she publicly holds 19 companies. During the quarter, the ace investor continued to expand her portfolio by adding two new companies and raising stakes in six others. Among her new investments, she bought a 1.1% stake in the housing finance company Repco Home Finance. The share price of these companies zoomed 174.4% in the past year. Khanna also added Selan Exploration Technology, an oil exploration & production company by buying a 1% stake. 

Dolly Khanna adds two stocks to her portfolio

During the quarter, Khanna bought a 0.6% stake in sugar stock Zuari Industries, taking her holding to 1.8%. The ace investor added a 0.3% stake in finance (including NBFCs) company Ujjivan Financial Services taking her holding to 1.4%. She bought around 0.1% stake each in construction & engineering company J Kumar Infraprojects , sugar stock KCP Sugar & Industries Corp, fertilizer company Mangalore Chemicals, and hotels company Savera Industries.

Porinju Veliyath expands his portfolio with new additions

Porinju Veliyath’s net worth decreased by 15% QoQ to Rs 191.1 crore in Q4FY24. During the quarter, he added three new companies to his portfolio, and increased investments in one company. The investor added airlines company TAAL to his portfolio in the latest quarter by buying a 1.1% stake. Porinju also bought a 1.7% stake in containers & packaging firm Mitsu Chem Plast.  

Porinju adds TAAL Enterprises and Mitsu Chem to his portfolio

Porinju continued to increase his holding in pharma company Kerala Ayurveda, by adding a 0.4% stake. He currently holds a 5.2% stake in the company. Its share price has risen by 209.7% in the past year.

 
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The Baseline
03 May 2024, 05:01PM
India’s rising military exports boost defence stocks | Screener: Defence stocks with strong estimates
By Shreesh Biradar

After the Russia-Ukraine war, PM Modi, in a conversation with Vladimir Putin, said, “This is not a time of war”. But while global leaders welcomed the statement, military spending has shot up worldwide.

Military spending has jumped on the back of rising 'tensions' - the word we use for worsening relationships between heavily armed states. Russia-Ukraine and Israel-Gaza have already caused thousands of deaths. Risky face-offs have been happening between China and its East Asian neighbours, between India and China, and between Israel and Iran.

Each time, these countries backed off from the cliff's edge, before these fights could blow up into a bigger war. But heads of state have recently exchanged increasingly aggressive statements. When Phillipines President Ferdinand Marcos Jr congratulated the winner of Taiwan's election (who the Chinese disliked), China summoned the Filipino ambassador and warned him, "don't play with fire". After China's renaming of various parts of Arunachal Pradesh, Defence Minister Rajnath Singh asked recently, "What if we rename parts of China? Don't try to hurt our self-respect."

As the situation grows more volatile, countries are busy forming military alliances and building in-house defence systems. Heads of state continue to say that peace is crucial, but money talks: global military spending has increased to $2,443 billion in 2023, a 6.3% rise from 2022. This is the highest jump since 2009.

Military spending by the US ($916 billion) and China ($296 billion) account for nearly half of global spending. India spends around $83.6 billion, making it the fourth largest. But unofficial numbers of China's military spend are even higher. According to the American Enterprise Institute, China spent $710 billion - more than twice its official figure - on its military.

To counter the threat of a China that is busy arming itself with long-range drones, nuclear warheads and AI systems, smaller Asian countries are partnering with India, the US and key regional powers like Japan and South Korea. Over the past decade, India has shifted from a non-aligned player to a strategic ally for the US, Japan and Australia. Australian PM Anthony Albanese noted, “China has amassed the greatest military build-up of any nation since World War II. So the regional defence cooperation of India, Japan and Australia is key to bringing stability to the South China Sea”.

While India’s defence manufacturing is small compared to the G20 countries, our defence exports have already risen by 32% to Rs 21,083 crore in FY24. These exports are boosting domestic defence players.

In this week’s Analyticks:

  • Defence sector boom: India’s rising defence exports are a win for the domestic industry
  • Screener: Rising defence stocks with high Forecaster growth estimates for revenue and EPS in FY24

Let’s get into it.

India’s military expenditure is rising in an uneasy world

India’s skirmishes with China in the Galwan Valley, and the Balakot strikes in Pakistan brought India close to war-like scenarios. As the borders become uneasy, India is ramping up military expenditure by modernising its weapon systems. Most of the spending has been towards procuring more fighter aircraft, unmanned capabilities, helicopters, tanks and artillery guns.

India’s military spending is 28% of China’s official military spending, and just 11% of unofficial numbers. China has also been spending (nearly $43 billion) on R&D and in-house systems. 

China’s military expenditure has increased almost 3 fold in the past 14 years

China has developed 5th generation J-20 fighter planes, which are far superior to India’s indigenous Tejas (developed by HAL). To counter China, India is buying foreign aircraft like Rafael along with existing MIGs. 

Pakistan's military expenditure of around $8.5 billion has been constrained due to its economic crisis. Pakistan is spending around 14.5% of its GDP towards its military, and has strengthened its China relationship by increasing defence imports from China by 43%.


 Pakistan is spending nearly 15% of its GDP on military

Old relationships are also fraying and countries are finding new friends. India’s military partnership with Russia has weakened as China, Pakistan and Russia have grown closer, especially after the Russia-Ukraine war. Russia has been supplying defence systems to both Pakistan and China, which is a serious threat as major Indian defence systems are Russian.

So India is quickly changing its defence strategy - Russia accounted for 76% of India’s procurement in 2014, but only 36% today. Indian defence deals are now being signed with France, the US, Israel, Spain and Germany.

India is building military alliances while increasing defence exports

India is no longer a 'non aligned' country. It has been building alliances with key players and providing military assistance to countries in distress. 

The Quad group, comprising India, the US, Japan, and Australia is working for security in the South China Sea. The group is conducting maritime exercises with smaller nations like the Philippines and Taiwan.

India has also increased defence exports to allies. It dispatched the first batch of its supersonic Brahmos missiles to the Philippines in a $375 million deal. Brahmos missiles are known for their high range and precision with a striking capability range of 500 km,  speeds up to 3.5 Mach and are capable of evading radar systems.

India’s defence exports rise 32% in FY24

To beat back the Turkey-Pakistan alliance, India is supplying Akash missiles to Armenia in a Rs 6,000 crore deal. Countries like Singapore, Egypt, Sri Lanka, UAE, Turkmenistan, and Malaysia have shown interest in buying the indigenously developed Light Combat Aircraft (LCA) Tejas.

Defence firms are seeing big opportunities with offset policies

India’s defence budget increased by 4.7% YoY to Rs 6,21,450 crore in FY25. Most of the spending is toward buying foreign-manufactured fighter aircraft. The government's clause in the defence offset policy (foreign firms need to invest a certain percentage of the deal value in India) is a big boost for domestic manufacturers. The offset policy has resulted in $7.9 billion in new orders for domestic firms. Defence stocks have outperformed the broader indices owing to an uptick in new orders.

Defence stocks outperform the Nifty 50 in the past year by huge margins

Zen Technologies Chairman Ashok Atluri expects the firm's revenue to grow by 50% CAGR for the next four years. Zen Technologies has bagged orders for Tank simulators and anti-drone systems. The firm has an order book size of Rs 1,500 crore with an export order book of Rs 437 crore. 

PSU defence firms like Hindustan Aeronautics and Bharat Electronics have also been winners of the offset scheme. HAL has delivered two Hindustan-228 aircraft to Guyana Defence Forces and has made tie-ups with General Electricals USA for the manufacturing of aircraft engines. HAL expects to double its revenue in FY25 due to order execution of 83 Tejas aircraft.

PSU defence firms have the largest order books in the industry

Bharat Electronics has reported a 13.7% growth in its revenue for FY24. The firm has benefited from export orders of Akash missile systems, communication systems for naval ships, radars, night vision devices and so on. The firm is expected to win orders of around Rs 50,000 crore in FY25 and FY26, and is expected to grow its revenue by 20% CAGR in the same period.

Mazagaon Dock Shipbuilders supplies ships and submarines to the Indian Navy. It has recently won orders for the supply of patrol vessels (Rs 1,612 crore) and hybrid-powered vessels (Rs 350 crore). Its current order book stands at Rs 35,000 crore. It has formed a JV with Germany’s Thyssenkrupp to bid for Rs 45,000 crore worth six P-75 class submarines for the Indian Navy. The firm is also looking at exports to countries like Sri Lanka, Brazil and South America.

While Indian firms are benefiting from increased global military spending, India still lacks key technology and depends on foreign counterparts. Defence tech has been seeing rapid innovations in unmanned systems, drone warfare, deep tech and now artificial intelligence. We need to step up our game by investing in R&D and scaling up domestic manufacturing in these areas, to truly gain an edge in both exports and on the battlefield.

Screener: Rising defence stocks with high Forecaster growth estimates for revenue and EPS in FY24

Defence stocks boast double-digit growth forecasts from analysts

As the result season is ongoing, we take a look at the booming sector of defence and stocks which are touted for growth in FY24. This screener shows defence stocks that have risen over the past year with high durability and Forecaster growth estimates for revenue and EPS in FY24.

Major stocks that appear in the screener are Data Patterns, Bharat Dynamics, Mazagon Dock Shipbuilders, Bharat Electronics and Astra Microwave Products.

Data Patterns has the highest Trendlyne Forecaster estimates for YoY revenue growth at 26.7% in FY24, Forecaster also expects the company’s EPS to grow 32.7% YoY. The company rose by 78.6% over the past year. Nirmal Bang is positive on the stock on the back of high demand from the armed forces for defence electronic systems, and the company’s diversified ability to design and develop in multiple domains – space, air, land and marine. 

Bharat Dynamics also features in the screener with Trendlyne Forecaster estimates for revenue and EPS YoY growth at 16.3% and 49.5% for FY24. The company has risen 94.3% over the past year. Analysts believe that the company’s large order book will provide headroom for growth over the next 3-4 years with order execution picking up in H2FY24 and FY25. Analysts also expect the company to receive an influx of orders as it is the primary provider of guided missiles and torpedoes to the Indian Armed Forces.

You can find more screeners here.

 
Trendlyne Marketwatch
Trendlyne Marketwatch
03 May 2024, 03:45PM
Market closes lower, MRF's net profit grows 16.3% YoY to Rs 396.1 crore in Q4

Nifty 50 closed at 22,460.90 (-187.3, -0.8%), BSE Sensex closed at 73,747.13 (-864.0, -1.2%) while the broader Nifty 500 closed at 20,945.20 (-138.4, -0.7%). Of the 2,063 stocks traded today, 647 were on the uptrend, and 1,377 went down.

Indian indices pared their gains and closed in the red after hitting their all-time highs during the morning trading session. The volatility index, Nifty VIX, rose sharply by 8.7% and closed at 14.6 points. MRF closed lower after its net profit missed Forecaster estimates by 25.4% despite growing 16.3% YoY to Rs 396.1 crore in Q4FY24.

Nifty Smallcap 100 and Nifty Midcap 100 closed in the red, taking cues from the benchmark index. Nifty Auto and Nifty Energy closed lower than their Thursday close. According to Trendlyne’s sector dashboard, Telecommunications Equipment emerged as the best-performing sector of the week, with a rise of 3%.

Major Asian indices closed flat or higher, except for India’s BSE Sensex closing in the red. European indices traded in the green amid positive global cues. US index futures traded higher, indicating a positive start to the trading session. Brent crude oil futures traded marginally lower after closing flat on a volatile day on Thursday.

  • Relative strength index (RSI) indicates that stocks like KFIN Technologies, Voltas, Escorts Kubota and Schaeffler India are in the overbought zone.

  • Century Textiles & Industries, Dr. Reddy's Laboratories, and Pidilite Industries' weekly average delivery volumes rise ahead of their Q4FY24 results on Monday.

  • Raymond reappoints Gautam Hari Singhania as the Managing Director for a period of five years, effective July 1, 2024.

  • Go Fashion falls to a 52-week low of Rs 933.3 as its net profit falls by 11.7% YoY to Rs 41.7 crore in Q4FY24, impacted by higher costs for raw materials, subcontracting, employee benefits, and finance. However, revenue grows by 15.3% YoY to Rs 181.7 crore during the quarter. The stock appears in a screener of stocks trading below their short, medium, and long-term average prices.

  • Harin Kanani, Managing Director of Neogen Chemicals, expects a recovery in agrochemicals demand in H2FY25. He adds that the non-battery business revenue will reach around Rs 750-800 crore in FY25, and Rs 1,000 crore by FY26.

  • Godrej Properties' Q4FY24 profit rises 5.3% YoY to Rs 478 crore and revenue increases 4.1% YoY. EBITDA grows by 3% to Rs 649 crore. The company appears in a screener for stocks near their 52-week highs with significant volumes.

  • MRF falls sharply as its net profit misses Forecaster estimates by 25.4% despite growing 16.3% YoY to Rs 396.1 crore in Q4FY24. Revenue rises by 8.7% YoY to Rs 6,349.4 crore during the quarter. It shows up in a screener of stocks with high promoter pledges.

  • Godfrey Phillips India rises as it inks a product supply agreement with Ferrero India. The company will distribute/resell packaged food products manufactured by Ferrero through select channels.

  • Citi Research maintains its ‘Buy’ rating on Adani Ports with an upgraded target price of Rs 1,782. The brokerage notes the company’s strong Q4 performance and healthy FY25 guidance. It adds that the FY25 capex plan shows strong cash flows and balance sheets, and also indicates its intention to accelerate growth in the medium term.

  • IT stocks like Tata Consultancy Services, Infosys, HCL Technologies, Wipro, and LTIMindtree are falling in trade. All constituents of the broader Nifty IT index are also trading in the red.

  • ICICI Securities maintains its 'Buy' rating on Havells India with an upgraded target price of Rs 1,940 per share. This indicates a potential upside of 16.3%. The brokerage believes that the company's commissioning of a new plant for cables and wires will help with higher revenue growth. It expects the company's revenue to grow at a CAGR of 13.6% over FY24-26.

  • Shriram Properties rises as it acquires a land parcel in Bengaluru to develop a residential community. This project has a revenue potential of over Rs 250 crore and is expected to be developed over the next three years.

  • Anil Gupta, CMD of KEI Industries, says demand remains strong and he expects revenue to grow by more than 15-16% YoY, with margins around 11% in FY25. He adds that exports will grow by over 50% YoY due to a healthy order book and inquiries.

  • Foreign institutional investors withdraw Rs 2,367.3 crore from the equity market over the past week, according to Trendlyne's FII dashboard. Meanwhile, mutual funds are net buyers, injecting Rs 5,930.4 crore during the same period.

  • HDFC Mutual Fund sells a 1% stake in Cyient for approx Rs 204.1 crore in a bulk deal on Thursday.

  • Ceat falls as its net profit drops 18.8% YoY to Rs 108.6 crore, despite a 4.1% increase in revenue. The decline in profit is due to higher raw material costs and a one-time legal obligation cost. The stock appears in a screener for companies with declining debt.

  • Reports suggest that 63.6 crore shares (2.2% equity) of Yes Bank, amounting to Rs 1,602 crore, change hands in a large deal. Carlyle is a likely seller in the transaction.

  • Max Estates surges as it inks an agreement for a potential residential project on 18.2 acres in Gurugram. Its gross development value is estimated at over Rs 9,000 crore.

  • Bajaj Finance surges in trade as the RBI lifts restrictions on two of its products, eCom and online digital ‘Insta EMI card’.

  • Coforge plunges as its net profit declines by 6% QoQ to Rs 223.7 crore in Q4FY24 due to rising employee benefits and finance costs. However, revenue grows by 1.5% QoQ to Rs 2,358.5 crore, helped by improvements in the Americas and EMEA businesses, which were slightly offset by declines in the Asia Pacific and India sectors. It appears in a screener of stocks with declining cash flow.

  • Morgan Stanley maintains its ‘Equal-weight’ rating on Federal Bank with an upgraded target price of Rs 180. The brokerage notes the bank’s strong asset quality and low credit costs. It believes that RoAs will remain strong as there are no likely rate cuts in the near term.

  • Mazagon Dock Shipbuilders is rising as it bags an order worth $42 million (approx. Rs 350.2 crore) from a European client to construct three multipurpose hybrid power vessels.

  • MOIL rises as its April 2024 production rises 22% YoY to 1.6 lakh tonnes. The company achieves sales of 1.2 lakh tonnes, up 17% YoY.

  • Ajanta Pharma proposes a buyback offer worth Rs 285 crore for up to 10.3 lakh equity shares at Rs 2,770 per share. The company has set May 30, 2024, as the record date for the buyback.

  • Coal India's Q4FY24 net profit grows by 25.8% YoY to Rs 8682.2 crore, helped by lower raw material and employee benefit costs. However, revenue declines by 1.9% YoY to Rs 37,410.4 crore. It appears in a screener of stocks where analysts upgraded their recommendation or target price in the past quarter.

Riding High:

Largecap and midcap gainers today include Hindustan Zinc Ltd. (459.70, 6.4%), Coal India Ltd. (473.15, 4.2%) and Supreme Industries Ltd. (5,010.10, 4.1%).

Downers:

Largecap and midcap losers today include Coforge Ltd. (4,482.70, -10.1%), SRF Ltd. (2,554.50, -4.3%) and MRF Ltd. (1,28,694.95, -3.9%).

Movers and Shakers

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

Top high volume gainers on BSE included Blue Dart Express Ltd. (6,823, 9.3%), Ajanta Pharma Ltd. (2,391.05, 7.0%) and Hindustan Zinc Ltd. (459.70, 6.4%).

Top high volume losers on BSE were Coforge Ltd. (4,482.70, -10.1%), MRF Ltd. (1,28,694.95, -3.9%) and Ceat Ltd. (2542, -3.1%).

Kansai Nerolac Paints Ltd. (289.95, 1.4%) was trading at 10.7 times of weekly average. Piramal Pharma Ltd. (151.30, 5.6%) and Elgi Equipments Ltd. (654.25, -0.6%) were trading with volumes 10.0 and 7.1 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

45 stocks hit their 52-week highs, while 1 stock hit their 52-week lows.

Stocks touching their year highs included - Ajanta Pharma Ltd. (2,391.05, 7.0%), Ashok Leyland Ltd. (202.30, 0.5%) and BASF India Ltd. (4,040.20, 0.7%).

Stock making new 52-week lows included - Kotak Mahindra Bank Ltd. (1,548.05, -1.8%).

14 stocks climbed above their 200 day SMA including Blue Dart Express Ltd. (6,823, 9.3%) and Emami Ltd. (498.05, 2.6%). 19 stocks slipped below their 200 SMA including Network18 Media & Investments Ltd. (83.55, -3.7%) and Ceat Ltd. (2,542, -3.1%).

 
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The Baseline
02 May 2024
Chart of the Week: The biggest misses by institutional analysts over the past year
By Satyam Kumar

Retail investors often rely on analysts to navigate the ups and downs of financial markets and help them spot potential winners. But predicting stock prices is tough. Many things can go wrong – such as a worse than expected monsoon (which hurt Deepak Fertilisers) or a regulatory move against a company (RBI vs PayTM).

This Chart of the Week takes a look at Nifty 500 stocks over the past year, and compares their actual performance to the Forecaster share price estimate from analysts one year ago, in April 2023.  We have selected stocks where analysts made the biggest misses, whose share price performance diverged the most from the 12 month forecast in April 2023.                                                                                                            

Asia’s oldest exchange stock leads the rally

BSE, formerly the Bombay Stock Exchange, rose 518.1% in the past year, compared to Forecaster’s 12-month upside estimate of 17.8% in April 2023. The exchange’s revenue in Q3FY24 has grown 76.1% YoY to Rs 431.4 crore, while its net profit during the same period went up by 109.5% YoY to Rs 108.2 crore. These improvements were primarily driven by market share gains in the derivatives segment. The exchange's strategic decision to shift the expiry day of their derivatives contracts, such as Sensex and Bankex, from Thursday to Friday, and subsequently to Monday for Bankex, has contributed significantly to its increased market share.

Capital markets company, Anand Rathi Wealth has also benefited from the rising interest in the Indian equity market among the domestic as well as international investor community. The stock has risen 365.8% in the past year, beating the Forecaster estimates of 24.7% by a huge margin. The wealth manager’s assets under management stood at Rs 59,351 crore in FY24, up 52% compared to Rs 38,993 crore at the end of FY23.

PSUs give outsized returns in FY24

The S&P BSE PSU Index has gained 97.3% in the past year, as per Trendlyne Technicals. This rise of the PSU index was backed by a government capex push of Rs 10 lakh crore. These and other government initiatives are a big boost to the infrastructure sector, and this is reflected in the share prices of PSU stocks. In the Union Budget of 2023-24, the Indian Railways received a capital outlay of Rs 2.4 lakh crore.

Indian Railway Finance Corporation (IRFC) rose 460.6% in the past year, compared to the Forecaster estimate of 24.8% at the start of FY24. This Navratna PSU borrows funds from financial markets to fund the acquisition/creation of assets that are leased out to the Indian Railways. The rise came mostly after the government announced plans to boost Indian Railways by introducing high-speed trains like Vande Bharat and dedicated freight corridors.

Similarly, another PSU operating in the construction and engineering industry, Ircon International also benefited from the government's plans to lay dedicated freight corridors. This company has an order book of Rs 29,400 crore, with 72% of it coming from the railways, 21% from roads, and remaining from other sectors. With promising revenue visibility for the upcoming years, Ircon has given returns of 296.8% in the past year beating Forecaster’s estimate of (16.1%) in April ’23. 

Erratic, weak monsoon hurts Deepak Fertilisers and UPL

Commodity chemical manufacturer Deepak Fertilisers & Petrochemicals has gained only 2.3% in the past year, compared to Forecaster’s 86% estimated in April ’23. This moderation in its share price was mainly because the company has seen consistent underperformance in sales in FY24, with profits declining in its fertilisers segment. This was mainly due to weak and erratic monsoons over the past year. In Q3FY24, the company’s revenue declined 33.1% YoY to Rs 1,863.8 crore, while its net profit declined 76.9% YoY to Rs 57.6 crore. Looking at its profitability in the past three quarters, the company in its fertilizers segment reported a net profit of Rs 42.3 crore in Q2 and reported a net loss of Rs 68.7 crore and Rs 0.8 crore in Q1 and Q3 respectively.

Similarly, agrochemical company UPL also posted a net loss of Rs 1,217 crore in Q3FY24, compared to a profit of Rs 1,087 crore in Q3FY23. This resulted in a decline of 29.1% in the past year, contrary to Forecaster’s estimated upside of 38.3%. 

Adani Energy & Rajesh Exports disappoint analysts the most

Adani Energy Solutions, an electric utilities firm, saw a significant decline in its share price following the release of the Hindenburg report on January 24 last year. The report accused the Adani group of manipulating stock prices, which adversely affected investor confidence in the company. Adani Energy also saw a 9.5% year-on-year decrease in net profit to Rs 1,137 crore. This led to the stock rising marginally by 7.1%, missing Forecaster’s estimates of 229.2% upside, predicted at the start of FY24.

Gems and Jewellery company, Rajesh Exports declined 43.1% in the past year, contrary to Forecaster’s estimated upside of 97.2% in April ’23. The company is reportedly involved in various compliance issues, including instances of missing documents during earnings filings, which were further compounded by declining revenues. Their net profit for Q3FY24 slumped 97% YoY at Rs 12.4 crore. According to Trendlyne’s Technicals, Rajesh Exports fell to a 5-year low at Rs 261 on March 28, 2024.

One97 Communications, an internet software and services firm, faced a major setback following the Reserve Bank of India’s (RBI) directive on January 31. The RBI ordered Paytm Payments Bank to cease banking services due to persistent non-compliance concerns. The stock has been stabilizing after its Founder & CEO, Vijay Shekhar Sharma resigned from the Payments Bank board. However, the company’s share price has gone down 42.1% in the past year, compared to Forecaster’s estimated upside of 42.2% in the starting of the previous fiscal.

 
Trendlyne Marketwatch
Trendlyne Marketwatch
02 May 2024
Market trades higher, Bajaj Auto's April 2024 wholesales grow by 17.2% YoY to 3.9 lakh units
By Trendlyne Analysis

Nifty 50 closed at 22,648.20 (43.4, 0.2%), BSE Sensex closed at 74,611.11 (128.3, 0.2%) while the broader Nifty 500 closed at 21,083.60 (86.4, 0.4%). Market breadth is neutral. Of the 2,074 stocks traded today, 1,002 were gainers and 1,034 were losers.

Indian indices recovered from their day lows and closed in the green. The Indian volatility index, Nifty VIX, rose by 4.5% and closed at 13.5 points. Dabur India closed sharply higher after its net profit grew by 16.2% YoY to Rs 349.5 crore in Q4FY24, helped by reduced cost of raw materials. 

Nifty Smallcap 100 closed flat, while the Nifty Midcap 100 closed in the green. Nifty Energy and Nifty Metal closed higher than their Wednesday close. According to Trendlyne’s sector dashboard, Retailing emerged as the best-performing sector of the day, with a rise of 1.5%.

Major Asian indices closed in the green, except for Japan’s Nikkei 225 closing flat. European indices traded flat or lower amid mixed global cues. US index futures traded in the green, indicating a positive start to the trading session. Brent crude oil futures traded flat after closing in the red for three straight trading sessions.

  • REC sees a short buildup in its May 30 future series as its open interest rises 19.8% with a put-call ratio of 1.3.

  • Dabur India rises sharply as its net profit grows by 16.2% YoY to Rs 349.5 crore in Q4FY24, helped by reduced cost of raw materials. Revenue increases by 5.1% YoY to Rs 2,814.6 crore, owing to improvements in the consumer care, food and retail segments. It shows up in a screener of stocks with high analyst ratings, with at least 20% upside.

  • Adani Ports & SEZ rises as its net profit grows by 76.2% YoY to Rs 2,039.7 crore in Q4FY24 due to lower employee benefits and finance costs. Revenue increases by 19% YoY to Rs 6,896.5 crore, owing to improvements in domestic cargo and SEZ segments. It features in a screener of stocks near their 52-week highs with significant volumes.

  • Anil Rai Gupta, the MD of Havells India, notes an improvement in the company's performance in H2FY24. He sees a better FY25 compared to FY24, with EBITDA margins expected to be between 13% and 14.5%, excluding the Lloyd business. Gupta also expects the company to gain market share over the next 3-5 years.

  • PSE stocks like REC, Hindustan Petroleum Corp, Power Finance Corp and Power Grid Corp are rising in trade. The broader sectoral index, Nifty PSE, is also trading in the green.

  • Federal Bank rises sharply as its Q4FY24 revenue grows by 26.6% YoY to Rs 5,978.4 crore, driven by improvements in the treasury, retail, and corporate banking segments. Net profit increases by 0.4% YoY to Rs 906.3 crore, helped by a return in provisions. The bank's asset quality also improves, with gross and net NPAs declining by 23 bps and 9 bps YoY, respectively.

  • Bharat Heavy Electricals rises as it inks a partnership agreement with HIMA Middle East (Dubai), an arm of HIMA Paul Hildebrandt (Dubai), for the railway signalling business.

  • Suvamoy Saha, the MD of Eveready India, attributes the muted topline growth in Q4 to external factors such as weak rural demand for batteries and flashlights, and price erosion in the lighting segment. He adds that the company is targeting double-digit revenue growth in FY25, with expected margins ranging from 10-12%.

  • KR Choksey maintains its 'Buy' rating on Maruti Suzuki with an upgraded target price of Rs 14,975 per share. This indicates a potential upside of 17%. The brokerage remains positive on the stock owing to its strong capex plans in the medium term, focus on high-demand spaces like SUVs, CNG, hybrids & EVs, robust export markets and margin stability. It expects the company's revenue to grow at a CAGR of 12.6% over FY24-26.

  • NMDC rises as its total sales in April 2024 grow by 2.9% YoY to 3.5 million metric tonnes, despite a slight drop in production.

  • IFCI surges to its 10% upper circuit as it posts a net profit of Rs 215.5 crore in Q4FY24, compared to a loss of Rs 232.5 crore in Q4FY23. This profit is attributed to reductions in employee benefits, finance costs, and impairment of financial instruments. Revenue also grows by 9% YoY to Rs 382.9 crore during the quarter. The company appears in a screener of stocks with decreased provisions.

  • Mahindra & Mahindra's overall auto wholesales rise 13% YoY to 70,471 units in April 2024. Domestic passenger vehicle wholesales grow by 18% YoY and total exports improve 2% YoY.

  • Aadhar Housing Finance sets the price band for its IPO at Rs 300-315 per share. The issue, valued at Rs 3,000 crore, consists of a fresh issue worth Rs 1,000 crore and an offer for sale of Rs 2,000 crore. The issue opens on May 8.

  • Jindal Stainless announces a Rs 5,400 crore investment plan to expand its melting and downstream capacities. The company will allocate Rs 3,350 crore for expanding and upgrading the infrastructure of its downstream lines in Jaipur and Odisha. It also plans to acquire a 54% stake in Chromeni Steels for Rs 1,340 crore.

  • Mishra Dhatu Nigam wins an order worth Rs 139 crore. After this order win, the company's total open order position stands at Rs 1,830 crore.

  • REC surges to its all-time high of Rs 555.7 as its Q4FY24 net profit grows by 33.8% YoY to Rs 4,016.3 crore due to reduced provisions. Revenue increases by 24.7% YoY to Rs 12,613.1 crore during the quarter. It appears in a screener of stocks where mutual funds have increased their holding over the past quarter.

  • India’s manufacturing PMI drops to 58.8 in April from 59.1 in March due to a modest slowdown in new orders and output. The PMI reading remains above the 50 mark for the 34th consecutive month.

  • Bajaj Auto rises as its April 2024 wholesales grow by 17.2% YoY to 3.9 lakh units. Two-wheeler wholesales increase by 18.7% YoY, while commercial vehicle wholesales improve by 7.3%.

  • Arpwood Partners Investment and Arpwood Capital, promoters of SBFC Finance sell their entire 5.2% stake (5.6 crore shares), for approximately Rs 493.7 crore in a bulk deal on Tuesday. Meanwhile, Custody Bank of Japan, Morgan Stanley Asia Singapore, and SBI Mutual Fund pick up 1.1%, 0.6%, and 1.8% stakes, respectively.

  • Astec Lifesciences is rising as Adi Godrej and family make an open offer to acquire a 26% stake (or 51 lakh shares) in the company at Rs 1,069.8 per share for an aggregate amount of Rs 545.5 crore.

  • Arul Selvan of Cholamandalam Investment and Finance says that the company is targeting an AUM growth of 20-25% YoY in FY25. He adds that the vehicle finance segment will make up 50% of the total AUM, with home loans and LAP (loan against property) contributing 30%. Selvan also expects an increased contribution from new segments like SME and unsecured loans.

  • Kotak Mahindra Bank falls as its joint Managing Director Krishnan Venkat Subramanian resigns with immediate effect on Tuesday to pursue other opportunities.

  • Tata Motors' April 2024 total wholesales rise 11.4% YoY to 77,521 units, led by a 31% YoY increase in commercial vehicle wholesales. Total domestic wholesales also grow by 12% YoY.

  • Havells India rises to its all-time high of Rs 1,706.9 per share as its net profit grows by 24.8% YoY to Rs 446.7 crore in Q4FY24. Revenue increases by 12% YoY to Rs 5,442 crore due to improvements in the switchgears, cables, lighting & fixtures, electrical consumer durables and Lloyd consumer segments. It shows up in a screener of stocks with increasing net profit and profit margin.

  • IndiaMART InterMESH is rising as its net profit surges 78.5% YoY to Rs 99.6 crore in Q4FY24. Revenue increases by 17.1% YoY to Rs 314.7 crore, owing to improvements in the web & related services and accounting software services segments. It features in a screener of stocks with increasing revenue for the past eight quarters.

  • Nifty 50 was trading at 22,650.60 (45.8, 0.2%), BSE Sensex was trading at 74,388.81 (-94.0, -0.1%) while the broader Nifty 500 was trading at 21,073 (75.8, 0.4%).

  • Market breadth is ticking up strongly. Of the 1,876 stocks traded today, 1,399 were on the uptrend, and 412 went down.

Riding High:

Largecap and midcap gainers today include REC Ltd. (553.90, 9.2%), Cholamandalam Investment & Finance Company Ltd. (1,301.60, 9.1%) and Hindustan Petroleum Corporation Ltd. (533.50, 7.7%).

Downers:

Largecap and midcap losers today include Supreme Industries Ltd. (4,812.05, -4.9%), Godrej Properties Ltd. (2,532.70, -4.3%) and Patanjali Foods Ltd. (1,451.35, -3.9%).

Volume Shockers

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

Top high volume gainers on BSE included REC Ltd. (553.90, 9.2%), Raymond Ltd. (2,294.55, 9.1%) and Cholamandalam Investment & Finance Company Ltd. (1,301.60, 9.1%).

Top high volume losers on BSE were Godrej Industries Ltd. (894.15, -6.9%), Godrej Properties Ltd. (2,532.70, -4.3%) and Rossari Biotech Ltd. (733.20, -2.1%).

IndiaMART InterMESH Ltd. (2,861.05, 8.2%) was trading at 32.0 times of weekly average. Avanti Feeds Ltd. (558.20, 4.8%) and BASF India Ltd. (4,014.10, 7.4%) were trading with volumes 10.7 and 8.9 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

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

Stocks touching their year highs included - Ashok Leyland Ltd. (201.35, 4.5%), BASF India Ltd. (4,014.10, 7.4%) and Bharat Heavy Electricals Ltd. (292.70, 3.9%).

Stock making new 52 weeks lows included - Kotak Mahindra Bank Ltd. (1,575.65, -3.0%).

11 stocks climbed above their 200 day SMA including IndiaMART InterMESH Ltd. (2,861.05, 8.2%) and Orient Electric Ltd. (226, 3.5%). 10 stocks slipped below their 200 SMA including JM Financial Ltd. (84.45, -5.0%) and CreditAccess Grameen Ltd. (1,466.95, -2.8%).

 
Trendlyne Marketwatch
Trendlyne Marketwatch
30 Apr 2024
Market closes lower, Indian Oil Corp's net profit falls 50% YoY to Rs 5,148.9 crore in Q4
By Trendlyne Analysis

Nifty 50 closed at 22,604.85 (-38.6, -0.2%), BSE Sensex closed at 74,482.78 (-188.5, -0.3%) while the broader Nifty 500 closed at 20,997.20 (5, 0.0%). Market breadth is in the red. Of the 2,077 stocks traded today, 912 were gainers and 1,119 were losers.

Indian indices pared the gains from the afternoon session and closed in the red. The volatility index, Nifty VIX, rose by 5.1% and closed at 12.9 points. Indian Oil Corp’s net profit declined by 50% YoY to Rs 5,149 crore in Q4FY24 due to higher employee benefits and finance costs. Revenue also dropped by 3.1% YoY to Rs 2.2 lakh crore, impacted by the petroleum products segment.

Nifty Midcap 100 and Nifty Smallcap 100 closed flat with the benchmark index closing lower. Nifty Realty and Nifty Auto closed higher than Monday’s closing level. According to Trendlyne’s sector dashboard, retailing emerged as the top-performing sector of the day, with a rise of over 1.7%. 

Most European indices trade in the red, except for England’s FTSE 100 trading higher. US indices futures trade lower, indicating a negative start. The provisional data indicated Eurozone’s GDP increased by 0.4% YoY in Q1 against estimates of 0.2% growth.

  • Money flow index (MFI) indicates that stocks like Escorts Kubota, Aegis Logistics, Just Dial and Hindustan Aeronautics are in the overbought zone.

  • Indian Oil Corp falls sharply as its net profit declines by 50% YoY to Rs 5,148.9 crore in Q4FY24 due to higher employee benefits and finance costs. Revenue also drops by 3.1% YoY to Rs 2.2 lakh crore, impacted by the petroleum products segment. It appears in a screener of stocks with declining net cash flow.

  • KR Choksey reiterates its 'Buy' rating on Axis Bank with an upgraded target price of Rs 1,345 per share. This indicates a potential upside of 15.6%. The brokerage believes that the bank's investment in technology and branch expansion will improve its operating leverage. It expects the company's net profit to grow at a CAGR of 13.2% over FY24-26.

  • Auto stocks like Mahindra & Mahindra, Exide Industries, Ashok Leyland and Apollo Tyres are rising in trade. The broader sectoral index, Nifty Auto, is also trading in the green.

  • Manappuram Finance rises to a 52-week high of Rs 207.3 as SEBI approves the IPO of its subsidiary, Asirvad Micro Finance. The company had filed a draft prospectus with SEBI in October 2023, which was later put on hold.

  • Exide Industries' Managing Director (MD) and Chief Executive Officer (CEO) Subir Chakraborty retires, effective today. The company appoints Avik Kumar Roy as the new MD and CEO, effective May 1, 2024.

  • NHPC is rising as it reportedly signs an agreement with Norway-based Ocean Sun to explore the implementation of floating solar energy technology in India.

  • Newgen Software Technologies surges as its Q4FY24 profit rises 54% QoQ to Rs 105.3 crore and revenue grows by 16.6% QoQ. The Europe, Middle East and Africa markets contribute the most towards this revenue growth. The company appears in a screener of stocks with low debt.

  • Nifty 50 reaches a record high of 22,783.4 today, inches closer to the 22,800 mark.

  • Granules India is rising as it receives final approval from the US FDA for its abbreviated new drug application (ANDA) for colchicine capsules. The tablet is a generic equivalent of Hikma International Pharmaceuticals' reference listed drug (RLD), Mitigare capsules, used for the treatment of gout flares.

  • Trent surges to its all-time high of Rs 4,670 per share as its net profit rises 15.8x YoY to Rs 712.1 crore in Q4FY24 owing to an exceptional gain from leasing activities. Revenue grows by 51.1% YoY to Rs 3,297.7 crore during the quarter. It shows up in a screener of stocks with increasing net profit for the past four quarters.

  • PSP Projects wins a work order worth Rs 229.5 crore for the construction of a mall and a multiplex for Thoth Mall and Commercial Real Estate.

  • Nuvama Institutional Equities expects Vodafone Idea to be included in the MSCI Global Standard Index during its August review. The brokerage sees Thermax, FSN E-Commerce (Nykaa), Alkem Laboratories, and SAIL as other likely inclusions to the index.

  • Shoppers Stop’s Q4FY24 net profit jumps 62.5% YoY to Rs 23.2 crore due to reduced inventory costs. Its revenue increases by 13.2% YoY to Rs 1,046.3 crore, driven by healthy demand in its beauty segment and luxury products.

  • Rites rises as it wins an order worth $111.3 million from Bangladesh Railway to supply 200 broad gauge passenger carriages.

  • KFIN Technologies rises as its Q4FY24 net profit improves 30.8% YoY to Rs 74.5 crore and revenue increases by 24.1% YoY to Rs 234.9 crore. The domestic mutual fund investor solutions segment contributes most towards this revenue growth. The company appears in a screener of stocks that have gained more than 20% in the past month.

  • Vivek Mathur, the CFO of KFIN Technologies, guides a revenue growth of 15-20% in FY25. He expects margins to be in the range of 40-45% for the company. Mathur highlights that revenue from international business has increased to 11% in FY24, and expects it to improve to 15% going ahead.

  • Rail Vikas Nigam's joint venture with Kerala Rail Development Corp receives a contract worth Rs 439 crore from Southern Railway to redevelop Thiruvananthapuram Central Railway Station.

  • Rashtriya Chemicals & Fertilizers is rising as the Ministry of Chemicals and Fertilizers approves an investment of Rs 2,169.7 crore in Talcher Fertilizers. Talcher Fertilizers is a joint venture (JV) among GAIL, Coal India and Fertilizer Corp.

  • JNK India’s shares debut on the bourses at a 49.6% premium to the issue price of Rs 415. The Rs 649.5 crore IPO has received bids for 28.1 times the total shares on offer.

  • Mahindra & Mahindra touches a 52-week high of Rs 2,152 following the launch of the XUV 3XO Compact SUV. Investec says this will enhance the compact SUV market share, and strengthen the overall UV franchise of the company. The brokerage maintains its ‘Buy’ rating with a target price of Rs 2,200.

  • SBFC Finance falls as its promoter reportedly sells its entire 5.5% stake worth Rs 536.5 crore in a bulk deal.

  • KEC International rises sharply as it bags multiple orders worth Rs 1,036 crore from Indian and overseas clients in the transmission & distribution (T&D), railways and cables segments.

  • The Ministry of Corporate Affairs approves the appointment of Hitesh Kumar Sethia as the Managing Director and Chief Executive Officer of Jio Financial Services.

  • Tata Chemicals falls sharply as it posts a net loss of Rs 827 crore in Q4FY24 compared to a net profit of Rs 711 crore in Q4FY23 due to higher provisions. Revenue declines by 21.1% YoY to Rs 3,475 crore, impacted by the basic chemistry products and specialty products segments. It appears in a screener of stocks with declining revenue for the past four quarters.

  • Nifty 50 was trading at 22,695.30 (51.9, 0.2%), BSE Sensex was trading at 74,746.98 (75.7, 0.1%) while the broader Nifty 500 was trading at 21,074.45 (82.3, 0.4%).

  • Market breadth is ticking up strongly. Of the 1,850 stocks traded today, 1,417 showed gains, and 370 showed losses.

Riding High:

Largecap and midcap gainers today include REC Ltd. (507.15, 9.5%), Power Finance Corporation Ltd. (441.55, 6.3%) and Schaeffler India Ltd. (3,689.85, 6.1%).

Downers:

Largecap and midcap losers today include Indian Oil Corporation Ltd. (168.85, -4.5%), Aditya Birla Capital Ltd. (231.40, -3.8%) and YES Bank Ltd. (26.15, -3.5%).

Volume Shockers

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

Top high volume gainers on BSE included REC Ltd. (507.15, 9.5%), JM Financial Ltd. (88.90, 9.1%) and Gillette India Ltd. (6,667.90, 7.4%).

Top high volume losers on BSE were Eureka Forbes Ltd. (471.20, -5.5%), Indian Oil Corporation Ltd. (168.85, -4.5%) and Rossari Biotech Ltd. (749.25, -4.0%).

Star Cement Ltd. (237.20, 4.3%) was trading at 17.8 times of weekly average. Procter & Gamble Hygiene & Healthcare Ltd. (16,070, -0.7%) and Symphony Ltd. (966.50, 1.6%) were trading with volumes 14.4 and 11.5 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

46 stocks took off, crossing 52 week highs, while 1 stock were underachiever and hit their 52 week lows.

Stocks touching their year highs included - Ashok Leyland Ltd. (192.65, 3.9%), Astral Ltd. (2,118.10, 3.1%) and Axis Bank Ltd. (1,165.90, 0.6%).

Stock making new 52 weeks lows included - Sheela Foam Ltd. (904.40, -1.1%).

18 stocks climbed above their 200 day SMA including JM Financial Ltd. (88.90, 9.1%) and Gillette India Ltd. (6,667.90, 7.4%). 7 stocks slipped below their 200 SMA including Cyient Ltd. (1,806.50, -1.9%) and Balrampur Chini Mills Ltd. (395.55, -1.5%).

 
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The Baseline
29 Apr 2024
5 stocks to buy from analysts this week - April 29, 2024
By Satyam Kumar

1. Welspun Living:

Sharekhan maintains its ‘Buy’ rating on this textiles company with a target price of Rs 181. This indicates an upside of 19.3%. In Q4FY24, the company’s net profit rose by 16.4% YoY to Rs 146 crore, and its revenue increased 19.2% YoY to Rs 2,616.7 crore. Analysts at Sharekhan are positive as the company stands to benefit from India signing a free trade agreement (FTA) with the UK, which will help boost revenue in the long term.

Management has given cautious guidance for the near term given the geopolitical tensions. However, the analysts are confident of long-term growth prospects due to large opportunities in the export markets, entry into the home textile segment, and benefits from the ‘China + 1’ strategy. 

Analysts at Sharekhan forecast a 10-12% revenue growth in FY25 driven by fashion towels and flooring segments, coupled with capacity additions. They maintain EBITDA margin guidance at 15-15.5% for FY25.

2. Nestle India:

Axis Direct maintains a ‘Buy’ call on this packaged foods manufacturer with a target price of Rs 2,880, indicating an upside of 14.8%. In Q4FY24, the company’s profit increased 12.4% YoY to Rs 934.2 crore and its revenue grew by 8.8% YoY. It reported EBITDA margins of 25.7%, up 289 basis points YoY. Analysts Preeyam Tolia and Suhanee Shome say, “Nestle delivered resilient all-round performance, driven by growth across all categories, with a healthy balance in product mix, pricing, and volume growth.”

Tolia and Shome are positive about the company due to its efforts toward rural penetration and premiumization in its core categories, and differentiated product launches by adding new categories like Nespresso and Purina Pet Care. They believe the firm’s direct-to-customer platform and its focus on a fast-growing nutraceutical portfolio will help it increase demand. They expect Nestle sales and profit to grow at 13% and 18% CAGR respectively over FY24-25. The analysts are also optimistic about Nestle’s joint venture with  Dr Reddy’s to launch a nutritional portfolio.

3. Hatsun Agro Products:

ICICI Securities upgrades this packaged foods manufacturer to a ‘Buy’ call with a target price of Rs 1,190. This indicates an upside of 8.3%. In Q4FY24, the company’s net profit rose by 108.7% YoY to Rs 52.2 crore and its revenue increased 14.4% YoY to Rs 2,049 crore. Analysts Aniruddha Joshi, Manoj Menon, Karan Bhuwania, and Nilesh Patil are optimistic due to its strong volume-led revenue growth and no price hikes in the past year. The analysts noted that the company reported 10-quarter high gross margins of 30.7% on the back of deflationary trends in raw material prices.  

The analysts expect margin expansion to continue in FY25 due to lower milk prices, higher revenue share of ice cream, accumulation of low-priced inventory, and improved capacity utilisation at the Solapur and Govindapur facilities. They estimate EBITDA margin to be 12.1% in FY25 compared to 11.3% in FY24. The company has introduced two chocolate brands, Hanobar and Havia in FY24 which analysts believe to be margin and value accretive in the medium-term.

4. HDFC Asset Management:

KRChoksey maintains a ‘Buy’ rating on this asset management company with a target price of Rs 4,235, indicating an upside of 12.3%. In Q4FY24, the company’s net profit increased 43.8% YoY to Rs 540.8 crore, and its revenue went up by 33.5% YoY to Rs 851.3 crore. Analyst Unnati Jadhav is upbeat as assets under management went up 39.1% YoY to Rs 60,730 crore driven by a higher tilt toward equity-oriented assets. In FY24, the company expanded its product offerings by launching five new funds. Also, it has enhanced its passive front by launching five index funds and two ETFs. 

According to the management, the employee cost for FY24 increased by 13.0% YoY as it included an ESOP cost of Rs 47 crore. However, Jadhav is optimistic as management expects ESOP costs to reduce in FY25 to Rs 20 crore. At the same time, she believes that the company will continue to invest in its digital infrastructure to support its distribution partners. In FY25-26, Jadhav expects revenue and profit CAGR of 21.5% and 19.7% respectively.

5. Patel Engineering:

Hem Securities initiates a ‘Buy’ call on this construction and engineering company with a target price of Rs 80. This indicates an upside of 26.2%. The analyst Mudit Jain believes the firm’s order book of Rs 19,134 crore and its book-to-bill ratio of 4.3X provide multi-year revenue visibility.

Jain says, “Patel Engineering being the leader in hydroelectric EPC projects is expected to get a good amount of orders in this space.” The firm has 42 hydropower projects with an aggregate capacity of 18,034 MW under construction. He believes that around 27,000 MW of hydropower projects will be announced in the coming years and expects the company to win major orders from this pipeline.

Jain notes that the order inflow was muted during the quarter mainly due to the Lok Sabha elections. However, the management is confident that order awarding will be robust post elections. They have guided for 15-20% growth in the order book for FY25. The analyst expects the small-cap company to post decent numbers going forward on the back of increased execution, and expects order inflows to increase. 

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

(You can find all analyst picks here)

 
Trendlyne Marketwatch
Trendlyne Marketwatch
29 Apr 2024
Market closes higher, ICICI Direct retains its 'Buy' rating on IndusInd Bank
By Trendlyne Analysis

Nifty 50 closed at 22,643.40 (223.5, 1%), BSE Sensex closed at 74,635.11 (905.0, 1.2%) while the broader Nifty 500 closed at 20,992.20 (152.9, 0.7%). Market breadth is balanced. Of the 2,103 stocks traded today, 1,034 were in the positive territory and 1,019 were negative.

Indian indices extended their gains from the afternoon session and closed in the green. The Indian volatility index, Nifty VIX, rose 12.1% and closed at 12.2 points. KPIT Technologies closed sharply higher after its Q4FY24 profit grew by 5.9% QoQ to Rs 165.9 crore and revenue increased by 4.6% QoQ. The European region contributed the most towards the company’s revenue growth.

Nifty Smallcap 100 and Nifty Midcap 100 closed in the green but underperformed the benchmark index. Nifty Energy and Nifty Bank closed higher than their Friday close. According to Trendlyne’s sector dashboard, Telecommunications Equipment emerged as the best-performing sector of the day, with a rise of 2.6%.

European indices traded in the green, taking cues from the Asian indices. US index futures traded higher, indicating a positive start to the trading session. Brent crude oil futures traded marginally lower after rising 1.1% on a volatile day on Friday.

  • Relative strength index (RSI) indicates that stocks like Motilal Oswal Financial Services, Voltas, Aegis Logistics and Aditya Birla Capital are in the overbought zone.

  • ICICI Direct retains its 'Buy' rating on IndusInd Bank with an upgraded target price of Rs 1,850, indicating a potential upside of 24.6%. The brokerage forecasts an increase in the bank’s revenue, driven by improved granularity in assets and liabilities, growth in the new retail and SMSE segments, and strong asset quality. It expects the bank's net interest income (NII) to grow at a CAGR of 17% over FY24-26.

  • Metals & mining, telecommunications equipment, and fertilizerssectors rise more than 15% in the past month.

  • Mahindra Lifespace Developers falls sharply as its revenue plunges by 94.4% YoY to Rs 14.3 crore in Q4FY24, impacted by the projects, project management, and development segments. However, net profit surges 134.9 times YoY, driven by a decrease in raw material costs. The company features in a screener of stocks that have underperformed their industries in the past quarter.

  • HSBC Global Research downgrades its rating on SBI Cards and Payment Services to ‘Reduce’ and cuts the target price to Rs 650 due to higher credit costs and asset quality pressures. SBI Cards’ Q4FY24 net profit rises 11% YoY to Rs 662.4 crore, and revenue increases 15.5% YoY. Credit costs grow 50% YoY during the quarter.

  • Shakti Pumps (India) hits the upper circuit as profit rises to Rs 89.7 crore in Q4FY24 from Rs 2.2 crore in Q4FY23. Its revenue grows by 233% YoY to Rs 610.1 crore on the back of Indian operations, while revenue from overseas operations falls. The company appears in a screener for stocks with low debt.

  • KPIT Technologies rises as its Q4FY24 profit grows by 5.9% QoQ to Rs 165.9 crore and revenue increases by 4.6% QoQ. The European region contributes the most towards revenue growth. The company appears in a screener for stocks with growth in net profit, with increasing profit margin.

  • Techno Electric & Engineering reaches a 52-week high of Rs 1,067.6 as it bags multiple orders worth Rs 4.063 crore from domestic entities. The orders include the establishment/execution of 765 kV substation packages for PowerGrid Corp and Adani Power, and the installation and operation of smart meters.

  • Sanjay Agarwal, MD of Au Small Finance Bank, highlights the bank’s target to double its balance sheet size to Rs 2.5 lakh crore in three years. He says this will be driven by the merger with Fincare SFB and the country’s growing consumption trend.

  • PSU bank stocks like Bank of India, Union Bank of India, Indian Bank and Central Bank of India are rising in trade. All constituents of the broader Nifty PSU Bank are also trading in the green, helping the index touch its all-time high of 7,502.6.

  • Multi Commodity Exchange of India is falling as the Securities and Exchange Board of India (SEBI) demands the company to pay a higher regulatory fee based on the annual turnover, including the notional value of options contracts.

  • Yes Bank rises sharply as its net profit surges by 123.2% YoY to Rs 451.9 crore in Q4FY24, helped by a reduction in provisions and a tax return, compared to a tax expense in Q4FY23. Revenue increases by 19.8% YoY due to improvements in the treasury, corporate, and retail banking segments. The bank’s asset quality also improves, with gross and net NPAs contracting by 50 bps and 20 bps YoY, respectively.

  • IREDA is rising as it receives the 'Navaratna' status from the Centre’s Department of Public Enterprises. Pradip Kumar Das, the CMD, says the company’s next target is to achieve the Maharatna status. He adds that the firm aims to continue 30% revenue growth, and expects the share of emerging businesses to increase to 45-50%.

  • Gland Pharma receives US FDA approval for Cetrorelix Acetate for Injection, a bioequivalent and therapeutically equivalent of Cetrotide, used to prevent premature LH surges. It has annual sales of approx $129 million.

  • Ircon International rises as its joint venture with Dineshchandra R Agrawal Infracon wins a construction order worth Rs 1,198.1 crore from East Coast Railway.

  • Apollo Hospitals Enterprise falls sharply as its board approves a Rs 2,475 crore investment in its subsidiary, Apollo Hospitals Co. by Advent International. Apollo Hospitals Co, in turn, acquires an 11.2% stake in Keimed for Rs 625.4 crore.

  • Amit Kumar Sinha, the CEO of Mahindra Lifespace Developers, says Q4 has been a strong quarter for the company in terms of pre-sales. He adds that the new launch in Kandivali, Mumbai, has driven bookings. Sinha also expects the company to exceed the FY25 guidance of Rs 2,500 crore in terms of bookings.

  • BSE falls after SEBI orders the company to pay a regulatory fee on the annual turnover, including the options contract fee.

  • IDFC First Bank falls sharply as its net profit declines by 9.8% YoY to Rs 724.4 crore in Q4FY24. However, revenue increases by 27.9% YoY to Rs 8,219.2 crore, driven by loans and advancements. The bank's asset quality is also improving, with gross and net NPAs contracting by 63 bps and 26 bps YoY, respectively. It appears in a screener of stocks with high interest payments compared to earnings.

  • Glenmark Pharmaceuticals receives US FDA approval for Acetaminophen and Ibuprofen tablets. Acetaminophen, a bioequivalent to Advil, has annual sales of $84.1 million.

  • Morgan Stanley maintains its ‘Overweight’ rating on InterGlobe Aviation (IndiGo) with an upgraded target price of Rs 4,615. The brokerage believes that the company has a large and sustainable moat. It expects a ramp-up in outbound travel and sees an expansion in the domestic and international markets to 370 million passengers in FY30.

  • ATC Telecom Infrastructure sells a 2.2% stake in Vodafone Idea for approx Rs 1,840.3 crore in a bulk deal on Friday.

  • ICICI Bank reaches its all-time high of Rs 1,131.7 as its net profit grows by 17.4% YoY to Rs 10,707.5 crore in Q4FY24. Revenue increases by 22.3% YoY to Rs 37,948.4 crore, driven by improvements in the deposits, domestic loans, retail loans, and business banking segments. It features in a screener of stocks with increasing revenue over the past eight quarters.

  • Maruti Suzuki is rising as its net profit surges 47.1% YoY to Rs 3,952.3 crore in Q4FY24. Revenue increases by 19.1% YoY to Rs 36,694.2 crore, helped by the domestic and export markets. It appears in a screener of stocks with growth in net profit and profit margin (QoQ).

  • HCL Technologies is falling as its net profit declines 8.4% QoQ to Rs 3,986 crore in Q4FY24 due to higher inventory, employee benefits and finance costs. Revenue remains flat at Rs 28,499 crore, with growth in the IT & business services segment offset by reductions in the engineering & R&D services and HCL software segments. It features in a screener of stocks where mutual funds have reduced their shareholding in the past quarter.

  • Nifty 50 was trading at 22,491.05 (71.1, 0.3%), BSE Sensex was trading at 73,981.92 (251.8, 0.3%) while the broader Nifty 500 was trading at 20,916.45 (77.1, 0.4%).

  • Market breadth is overwhelmingly positive. Of the 1,910 stocks traded today, 1,585 were gainers and 268 were losers.

Riding High:

Largecap and midcap gainers today include Supreme Industries Ltd. (4,955.15, 14.2%), Au Small Finance Bank Ltd. (637.95, 6.4%) and Indian Bank (559.05, 6.2%).

Downers:

Largecap and midcap losers today include HCL Technologies Ltd. (1,387.40, -5.9%), Apollo Hospitals Enterprise Ltd. (5,968.35, -4.6%) and Vodafone Idea Ltd. (13.45, -3.9%).

Crowd Puller Stocks

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

Top high volume gainers on BSE included Supreme Industries Ltd. (4,955.15, 14.2%), Jamna Auto Industries Ltd. (141.75, 7.3%) and JBM Auto Ltd. (1,907.50, 7.1%).

Top high volume losers on BSE were HCL Technologies Ltd. (1,387.40, -5.9%), Apollo Hospitals Enterprise Ltd. (5,968.35, -4.6%) and IDFC Ltd. (121.65, -4.4%).

BLS International Services Ltd. (349.95, 6.2%) was trading at 10.2 times of weekly average. AIA Engineering Ltd. (3,771.85, -3.4%) and Vaibhav Global Ltd. (425.30, 6.1%) were trading with volumes 10.1 and 6.9 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

42 stocks made 52 week highs,

Stocks touching their year highs included - Aegis Logistics Ltd. (696.15, 9.5%), Axis Bank Ltd. (1,159.25, 2.6%) and Bank of Maharashtra (71.05, 5.0%).

16 stocks climbed above their 200 day SMA including Vaibhav Global Ltd. (425.30, 6.1%) and Finolex Cables Ltd. (1,035.05, 3.1%). 8 stocks slipped below their 200 SMA including Craftsman Automation Ltd. (4,423.50, -5.6%) and IDFC Ltd. (121.65, -4.4%).