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Trendlyne Marketwatch
Trendlyne Marketwatch
10 May 2024
Market closes higher, Cipla's Q4FY24 net profit rises by 78.6% YoY to Rs 939 crore
By Trendlyne Analysis

Nifty 50 closed at 22,055.20 (97.7, 0.4%), BSE Sensex closed at 72,664.47 (260.3, 0.4%) while the broader Nifty 500 closed at 20,469.10 (124.3, 0.6%). Of the 2,064 stocks traded today, 1,284 showed gains, and 739 showed losses.

Indian indices extended their gains from the open and closed in the green. The Indian volatility index, Nifty VIX, rose 1.5% and closed at 18.5 points. Escorts Kubota hit its all-time high and closed 3% higher after its net profit grew by 16.4% YoY to Rs 251.9 crore in Q4FY24.

Nifty Smallcap 100 and Nifty Midcap 100 closed in the green, taking cues from the benchmark index. Nifty Energy and Nifty Infra closed higher than their Thursday close.  According to Trendlyne’s sector dashboard, FMCG emerged as the best-performing sector of the week, with a rise of 3.7%.

Major European indices traded in the green, taking cues from the Asian indices amid positive global cues. US index futures traded in the green, indicating a positive start to the trading session. Brent crude oil futures traded in the green after rising for two straight trading sessions on Wednesday and Thursday.

  • Dr. Lal Pathlabs sees a long buildup in its May 30 future series as its open interest rises 15.8% with a put-call ratio of 0.6.

  • Aurobindo Pharma gets an observation from the US FDA following an inspection at the API manufacturing facility of its arm, Apitoria Pharma.

  • Cipla's Q4FY24 net profit surges by 78.6% YoY to Rs 939 crore, owing to a fall in raw material and finance costs. Revenue increases by 7.3% YoY to Rs 6,082.4 crore on the back of the India, North America, South Africa and R&D segments. It features in a screener of stocks with zero promoter pledge.

  • Great Eastern Shipping Co rises sharply as its net profit grows by 25.4% YoY to Rs 905.1 crore in Q4FY24 due to lower fuel, oil & water, and finance costs. Revenue increases by 2.8% YoY to Rs 1,497.3 crore, helped by the shipping and offshore segments. It shows up in a screener of stocks with rising dividend yields for the past five years.

  • Atul Kumar Goel of Punjab National Bank notes that the bank's loan growth has remained consistent with previous quarters, focusing on retail, agriculture, and MSME sectors. He anticipates Net Interest Margins (NIMs) to be between 2.9-3% for FY25 and aims for a slippage ratio of less than 1%.

  • TBO Tek's Rs 1,550.8 crore IPO gets bids for 24.9X the available 92.9 lakh shares on offer on the third day of bidding. The retail investor quota gets bids for 18.6X the available 16.8 lakh shares on offer.

  • Aadhar Housing Finance's Rs 3,000 crore IPO gets bids for 6.4X the available 7 crore shares on offer on the third day of bidding. The retail investor quota gets bids for 1.8X the available 3.5 crore shares on offer.

  • TVS Holdings to acquire an 80.7% stake in Home Credit India Finance for Rs 554.1 crore. Home Credit India Finance, a consumer financing and personal loans provider, reported assets under management totaling Rs 5,535 crore as of March 31, 2024.

  • Amit Syngle, CEO of Asian Paints, states that there will be no further price cuts in the near term, and adds that pricing for Q1FY25 has remained flat so far. He also sees an improvement in demand in the rural sector.

  • Foreign institutional investors withdraw Rs 11,568.8 crore from the equity market over the past week, according to Trendlyne's FII dashboard. Meanwhile, mutual funds are net buyers, injecting Rs 1,321.6 crore during the same period.

  • Strides Pharma Science rises as its arm, Strides Pharma Global, gets US FDA approval for sevelamer carbonate tablets, used in preventing hypocalcemia (low levels of calcium in the body) caused by elevated phosphorus. The market size for sevelamer carbonate tablets is $181 million.

  • Mahanagar Gas falls sharply as its net profit declines by 6.2% YoY to Rs 252.3 crore in Q4FY24. Revenue remains flat at Rs 1,771.5 crore, with an increase in PNG sales being offset by a decrease in CNG sales. It features in a screener of high-volume and top-losing stocks.

  • CLSA downgrades Sula Vineyards to ‘Underperform’ and reduces the target price to Rs 515. The brokerage anticipates challenges in revenue and margin growth for FY25, citing potential medium-term impacts from the revised wine industrial promotion scheme. It also notes muted demand in key markets, including Mumbai and Goa.

  • Polycab India's Q4FY24 net profit rises 29.1% YoY to Rs 553.5 crore, with revenue also up by 29% YoY. The growth is largely driven by the wires and cables segment. The company appears in a screener for stocks with increasing revenue for the past two quarters.

  • KR Choksey retains its 'Buy' rating on Poonawalla Fincorp with a target price of Rs 555. This indicates a potential upside of 19.6%. The brokerage is positive on the stock owing to its strong digital footprint, improving operating leverage, adequate capital and provision buffer, and industry tailwinds. It expects the company's net interest income (NII) to grow at a CAGR of 37.3% over FY24-26.

  • Abbott India rises as its Q4FY24 net profit increases by 24% YoY Rs 287.1 crore and revenue grows by 9.1% YoY. The company's board approves a final dividend of Rs 410 per share for FY24, setting July 19, 2024, as the record date. It appears in a screener for stocks with low debt.

  • Pranav Amin, Managing Director of Alembic Pharmaceuticals, says that the company aims for gross margins of more than 70% in FY25. He expects EBITDA margins to exceed 20% in the next three years. Amin adds that the company targets double-digit revenue growth in the US, and plans to launch 25 products.

  • Escorts Kubota rises to its all-time high of Rs 3,582 as its net profit grows by 16.4% YoY to Rs 251.9 crore in Q4FY24. However, revenue declines by 5.5% YoY to Rs 2,093.5 crore, impacted by the agri machinery products and railway equipment segments. It shows up in a screener of stocks where analysts have upgraded their recommendation and target prices in the past quarter.

  • Intellect Design Arena plunges as its net profit declines by 13.4% QoQ to Rs 73 crore in Q4FY24 due to increasing raw material and finance costs. Revenue decreases by 3.2% QoQ to Rs 613.7 crore, impacted by the platform segment. It appears in a screener of stocks where mutual funds have decreased their shareholding in the last quarter.

  • Shyam Metalics and Energy's April 2024 stainless steel sales rise 33.7% YoY to 6,886 tonnes and aluminium foil sales increase by 22.1% YoY to 1,338 tonnes. The company's speciality alloys sales fall 6.8% YoY, while pellet sales decrease by 62.2% YoY.

  • Go Digit sets the price band for its IPO at Rs 258-272 per share. The issue, valued at Rs 2,615 crore, consists of a fresh issue worth Rs 1,125 crore and an offer for sale of around Rs 1,490 crore. The issue opens on May 15.

  • Bharti Enterprises sells a 0.8% stake (38.5 lakh shares) in ICICI Lombard General Insurance for approximately Rs 663.2 crore in a block deal on Thursday. Meanwhile, ICICI Bank, Axis Mutual Fund, Morgan Stanely and others pick up stakes in the company.

  • VST Tillers Tractors falls as its Q4FY24 net profit declines 13.5% YoY to Rs 34.8 crore and revenue drops 13.4% YoY. The company's EBITDA margin also decreases 54 bps YoY to 17.7%. It appears in a sreener for stocks where mutual funds have increased stakes in the past month.

  • Solara Active Pharma Sciences' board approves the rights issue of shares worth Rs 450 crore, sets an issue price of Rs 375 per share.

  • Bharat Petroleum Corp falls sharply as its net profit plunges by 30.3% YoY to Rs 4,789.6 crore in Q4FY24 due to higher excise duty, raw material and employee benefit expenses. Its revenue also declines by 1% YoY to Rs 1.3 lakh crore, impacted by the downstream petroleum segment. It appears in a screener of stocks with dereasing cash flow from operations over the past two years.

Riding High:

Largecap and midcap gainers today include Hindustan Zinc Ltd. (525.50, 15.2%), Honeywell Automation India Ltd. (46,823.20, 8.3%) and Endurance Technologies Ltd. (2,112, 8.0%).

Downers:

Largecap and midcap losers today include Bank of Baroda (254.85, -3.0%), Sona BLW Precision Forgings Ltd. (590.20, -2.5%) and PB Fintech Ltd. (1,202.25, -2.5%).

Volume Rockets

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

Top high volume gainers on BSE included Jupiter Wagons Ltd. (488.55, 16.3%), Hindustan Zinc Ltd. (525.50, 15.2%) and Jindal Worldwide Ltd. (353.30, 9.0%).

Top high volume losers on BSE were Intellect Design Arena Ltd. (874.95, -14.6%), Home First Finance Company India Ltd. (817.70, -3.7%) and Mahanagar Gas Ltd. (1,300.35, -2.2%).

Galaxy Surfactants Ltd. (2,471.30, 0.7%) was trading at 12.4 times of weekly average. G R Infraprojects Ltd. (1,336, 1.8%) and Polycab India Ltd. (6155.65, 6.1%) were trading with volumes 9.8 and 9.4 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

10 stocks overperformed with 52-week highs, while 7 stocks were underachievers and hit their 52-week lows.

Stocks touching their year highs included - Astral Ltd. (2,158.65, 4.2%), Escorts Kubota Ltd. (3,553.30, 3.1%) and Hero MotoCorp Ltd. (4,877.40, 2.4%).

Stocks making new 52-week lows included - Asian Paints Ltd. (2,771.25, 2.3%) and Berger Paints (India) Ltd. (490.25, 1.9%).

10 stocks climbed above their 200 day SMA including Jindal Worldwide Ltd. (353.30, 9.0%) and Sapphire Foods India Ltd. (1,417.15, 3.5%). 24 stocks slipped below their 200 SMA including Orient Electric Ltd. (208.75, -2.8%) and Rain Industries Ltd. (156.55, -2.7%).

 
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The Baseline
10 May 2024
Which stocks did superstar investors sell in Q4FY24?
By Abhiraj Panchal

Tracking superstar investors’ portfolio changes provides investors with useful clues about market trends and potential investment strategies. Their stock and sector choices tell us where they are optimistic or cautious, helping other investors decide on their approaches.

Some superstars see their net worth fall after Q4FY24

Previously, we looked at the key superstar buys in Q4FY24. Now, let's analyse their sells. Most superstars went on a selling spree this quarter as markets grew volatile. The chart shows their biggest sells during this period.

Biggest sells by superstars in Q4FY24

RARE Enterprises adjusts holdings in key sectors

Rakesh Jhunjhunwala’s portfolio, currently managed by Rekha Jhunjhunwala and investment firm RARE Enterprises, reduced stakes in multiple companies in Q4FY24. The portfolio’s net worth fell 9.5% to Rs 46,822.89 crore after Q4FY24.

RARE Enterprises cuts stakes in banking and finance stocks

In the January-March quarter, the late big bull’s portfolio cut a 0.9% stake in capital markets company Geojit Financial Services. Its share price rose by 139.1% in the past year, underperforming its industry by 31.6 percentage points.  RARE now holds a 7.3% stake in the firm. RARE also reduced stakes in bank stocks — Canara Bank, Federal Bank, and Karur Vysya Bank by 0.6%, 0.4%, and 0.3% respectively. 

RARE Enterprises cut a 0.6% stake each in construction company NCC, edible oils maker Agro Tech Foods, and healthcare facilities firm Fortis Healthcare in Q4FY24, reducing its holding to  12.5%, 7.5%, and 4.1% respectively.  It also sold a 0.5% stake in internet software company Nazara Technologies, and 0.3% in cars & utility vehicles maker Tata Motors.

During Q4, Jhunjhunwala’s portfolio also trimmed its stake in Tata Communications by 0.3%. It now holds a 1.6% stake in the telecom services company. It cut a 0.2% stake in pharmaceuticals company Wockhardt, taking the holding to 1.9%. It also reduced its holding in other industrial goods firm Raghav Productivity Enhancers to 5.1% during the quarter. 

Ashish Kacholia cuts stakes in four small-cap companies to below 1%

Ashish Kacholia’s net worth rose by 2.4% to Rs 2,991 crore after Q4FY24. He reduced his stakes in Likhitha Infrastructure to below 1% from 1.8% in Q3FY24. The construction & engineering company’s share price rose by 20.4% in the past year underperforming its industry by 59.6 percentage points. 

In addition, Kacholia cut his stake in La Opala RG (houseware company) and Best Agrolife (agrochemicals company) to below 1% from previous stakes of 1.7% and 1.4% in Q3. La Opala RG and Best Agrolife fell by 14.8% and 46% over the past year. Kacholia also cut stake in packaged foods manufacturer ADF Foods to below 1%. 

Kacholia cuts stakes in four companies to below 1% 

The ace investor also sold 0.9% of his stake in Shankara Building Products, leaving him with a 1.1% holding in the iron and steel company. He reduced his stake in Garware Hi-Tech Films, a containers and packaging company, to 3.4%. He also sold a 0.4% stake in Repro India (publishing) and a 0.3% stake in Genesys International Corp (IT consulting and software), now holding 2.8% and 1.3%. 

Kacholia sold a 0.2% stake each in Universal Autofoundry (auto parts manufacturer), Ador Welding (industrial goods), Xpro India (containers and packaging company), and Safari Industries (apparel and accessories). He now holds 8.3%, 4.2%, 3.7%, and 1.9%, respectively, in them. He reduced his stakes in apparel and accessories company Vaibhav Global to 1.1%, specialty retail company Aditya Vision to 1.9%, and education company NIIT Learning Systems to 2.1%.

In H2FY24, Kacholia sold a 2.8% stake in Virtuoso Optoelectronics. He now holds 2.6% in the consumer durables firm.

Sunil Singhania’s Abakkus Fund goes on a selling spree in Q4

Sunil Singhania’s Abakkus Fund saw its net worth fall -5.3% to Rs 2,680.9 crore after Q4FY24. The fund reduced its stake in Dreamfolks Services to below 1% during the quarter, after holding a 1.5% stake in the travel support services company in Q3FY24. Its share price rose by 20.9% over the past year underperforming its industry by 49.4 percentage points. It also cut its stake in AGI Greenpac and CMS Info Systems to below 1%. It held 1.1% in the containers and packaging firm and 1% in the financial services company in Q3FY24. Their prices increased by 43.8% and 37.7% over the past year.

Singhania trims stakes three companies to below 1%

Singhania’s fund also trimmed its stake in Siyaram Silk Mills by 0.2%, now holding 1.6% of the textile company. It sold a 0.14% stake in Route Mobile and now holds 2.44%in the internet software and services company. 

Abakkus cut 0.1% each in Carysil (household products manufacturer), Mastek (IT consulting firm), and DCM Shriram Industries (sugar producer). It now holds 5.8%, 3.1%, and 2.9%, respectively. It also reduced its stake in Sarda Energy & Minerals and Ion Exchange (India). It now holds 2.1% in the iron and steel products manufacturer and 2% in the utilities company.

Vijay Kedia cuts stakes in four companies

Vijay Kedia’s net worth has risen 30.5% to Rs 1,622 crore. In Q4, he slashed his stake in Neuland Laboratories by 0.2% and now holds 1.1% in the pharma company. The company's share price rose by 262.9% in the past year outperforming its industry by 199.5 percentage points. He also sold a 0.13% stake in Elecon Engineering during Q4FY24. He now holds a 1.34% stake in the industrial machinery company. 

  Kedia sells stakes in Neuland Labs, Om Infra, Elecon Engineering

Kedia also cut his stake in Om Infra to 2.5% by selling a 0.1% stake in the construction and engineering company. He sold a 0.1% stake in Siyaram Silk Mills and now holds 1% in the textiles firm.

Dolly Khanna cuts stakes in two companies to below 1%

Dolly Khanna reduced her holdings in multiple companies in Q4FY24, including two where her stakes fell below 1%. Her net worth has increased by 10.7% to Rs 543.1 crore since the end of Q4FY24. During the quarter, she reduced her stakes in KCP (a cement & cement products manufacturer) and Simran Farms to below 1%, from the 1.1% and 1% held in Q3. This marks the fifth consecutive quarter where she has reduced her stake in the packaged foods company. Over the past year, KCP has risen by 56.6%, underperforming its industry by 24.3 percentage points. 

Dolly Khanna pares stakes in multiple companies

The ace investor cut a 1.1% stake in Pondy Oxides & Chemicals and now holds 1.3% in the non-ferrous metals company. She had a 2.4% stake in Q3. Khanna also trimmed her stake in plastic products company Prakash Pipes by 0.27% to take her holding to 2.87%. She sold a 0.2% stake in Chennai Petroleum Corp and currently holds 1.1% in the refineries/ petro-products company. 

The investor also reduced her holding in textiles company Deepak Spinners to 1.77% during the quarter. 

Mohnish Pabrai reduces stakes in three mid-cap companies

Mohnish Pabrai’s net worth fell by 54.5% to Rs 483.1 crore after Q4FY24. During the quarter, he reduced his holding in Rain Industries to below 1%, from 4.4% in Q3. The petrochemical company’s share price has risen by 6.3% over the past year but underperformed its industry by 46.3 percentage points.

Pabrai cuts stakes in three companies

Pabrai cut his stake in Sunteck Realty by 4.5% during the quarter. He now holds a 2.2% stake in the realty company. He also reduced his stake in Edelweiss Financial Services to 5.1% by selling a 2.6% stake in the financial services provider.

Porinju Veliyath cuts stakes in three companies

Porinju V Veliyath’s net worth increased by 17.3% to Rs 224.2 crore after Q4FY24. During the quarter, he reduced his stakes in three companies, with holdings in one dropping below 1%. 

Porinju cuts stakes in Arrow Greentech, Duroply, RPSG Ventures

Porinju also cut his stake in Arrow Greentech to below 1%. Porinju had added the company to his portfolio in Q2FY24, buying 1.1%.  The company’s share price has risen by 93.5% over the past year outperforming its industry by 22 percentage points. 

The ace investor also sold a 0.91% stake in forest products company Duroply Industries, taking his holding to 5.54%. During the quarter, he cut a 0.2% stake in RPSG Ventures and now holds 1.4% in the IT consulting & software company. 

 
Trendlyne Marketwatch
Trendlyne Marketwatch
09 May 2024
Market closes lower, HPCL's Q4FY24 net profit declines 24.9% YoY to Rs 2,709.3 crore
By Trendlyne Analysis

Nifty 50 closed at 21,957.50 (-345, -1.6%), BSE Sensex closed at 72,404.17 (-1062.2, -1.5%) while the broader Nifty 500 closed at 20,344.80 (-360.1, -1.7%). Market breadth is overwhelmingly negative. Of the 2,069 stocks traded today, 277 showed gains, and 1,761 showed losses.

Indian indices extended the losses from the afternoon session and closed in the red. The volatility index, Nifty VIX, rose by 6.5% and closed at 18.2 points. Hindustan Petroleum Corp’s Q4FY24 net profit declined by 24.9% YoY to Rs 2,709.3, while revenue grew by 6% YoY.

Nifty Midcap 100 and Nifty Smallcap 100 closed lower following the benchmark index. Nifty Auto closed higher than Wednesday’s closing level. According to Trendlyne’s sector dashboard, hardware technology & equipment emerged as the top-performing sector of the day, with a rise of over 0.4%. 

Most European indices trade in the red, except for Germany’s DAX trading higher. US indices futures trade lower, indicating a negative start. Brent crude prices trade above $84 per barrel as a report published by Goldman Sachs suggested that OPEC+ might extend the voluntary production cuts beyond June.

  • Money flow index (MFI) indicates that stocks like Escorts Kubota, Tube Investments of India, Emami and Blue Dart Express are in the overbought zone.

  • Hindustan Petroleum Corp is falling as its Q4FY24 net profit declines 24.9% YoY to Rs 2,709.3 crore. The decline is due to higher material costs, employee benefit expenses and finance costs. However its revenue grows by 6% YoY.

  • Bank of Baroda is rising as the Reserve Bank of India (RBI) lifts restrictions on the bank's app, BoB World, allowing it to onboard customers.

  • Alkyl Amines Chemicals falls sharply as its net profit declines by 20.9% YoY to Rs 38.5 crore in Q4FY24. Revenue decreases by 13.5% YoY to Rs 356.6 crore during the quarter. It shows up in a screener of stocks with declining return on equity (RoE) over the past two years.

  • Jefferies has a ‘Buy’ rating on TVS Motor Co with a target price of Rs 2,525. The brokerage sees strong growth for India’s two-wheeler segment and says that the export market is recovering. Jefferies highlights the company's improved margins, which reached 11.1% in FY24, and its gains in market share.

  • TBO Tek's Rs 1,550.8 crore IPO gets bids for 2.6X the available 92.9 lakh shares on offer on the second day of bidding. The retail investor quota gets bids for 7.4X the available 16.8 lakh shares on offer.

  • Aadhar Housing Finance's Rs 3,000 crore IPO gets bids for 1.1X the available 7 crore shares on offer on the second day of bidding. The retail investor quota gets bids for 0.7X the available 3.5 crore shares on offer.

  • Venus Pipes & Tubes' Q4FY24 net profit rises 86.5% YoY to Rs 25 crore and its revenue increases 26.8% YoY. Its margin also improves 786 basis points YoY to 20.1%. The company appears in a screener for stocks trading near their 52-week high.

  • Mutual Funds' net inflow stands at Rs 2.4 crore in April, compared to an outflow of Rs 1.6 crore in March, according to data released by the Association of Mutual Funds in India (AMFI). Net AUM stands at Rs 52.2 lakh crore during the same period.

  • Oil & gas stocks like GAIL (India), Oil India, Castrol India and Oil & Natural Gas Corp fall sharply in trade today. All constituents of the broader Nifty Oil & Gas index are also trading in the red, causing the index to fall more than 2%.

  • SKF India rises sharply as its Q4FY24 net profit grows by 42.5% YoY to Rs 175.2 crore, owing to inventory sales. Revenue increases by 9.9% YoY to Rs 1,203.4 crore during the quarter. The company appears in a screener of stocks where FIIs are increasing their shareholding.

  • Sula Vineyards is falling as its Q4FY24 net profit falls 4.9% YoY to Rs 13.6 crore, despite a 10.7% YoY rise in revenue. EBITDA margin falls 110 basis points to 30.2% during the quarter. The company appears in a screener for stocks with increasing revenue for the past two quarters.

  • Sharad Mahendra, Joint MD and CEO of JSW Energy, notes that the renewable energy segment performed below expectations in FY24. However, he expects the company to exceed its 10 GW renewable energy target for FY25. Mahendra also predicts a power demand increase of 7.5-8% in FY25.

  • EMS emerges as the lowest bidder for a project worth Rs 148.1 crore. The contract includes the supply, installation, testing, and commissioning of infrastructure works under the Revamped Reforms Linked Distribution Sector Scheme in Rural Dehradun.

  • ICICI Direct initiates coverage on Gujarat Fluorochemicals with a 'Buy' rating and a target price of Rs 3,320 per share. This indicates a potential upside of 22%. The brokerage believes that the company will receive traction in the fluoropolymers and battery materials segments in the medium term. It expects the company's revenue to grow at a CAGR of 23.6% Over FY24-26.

  • Nifty Auto hits an all-time high of 22,994.6. Auto stocks like TVS Motor, Hero MotoCorp, Tata Motors and Mahindra & Mahindra are rising in trade.

  • The RBI reportedly sends an advisory on cash disbursal of loans to NBFCs, particularly targeting those providing gold loans like Manappuram Finance and Muthoot Finance. The central bank has mandated that no NBFC should disburse loans exceeding Rs 20,000 in cash. It has also instructed these companies to ‘strictly adhere' to the provisions of the IT Act concerning cash disbursements.

  • Bajaj Consumer Care falls sharply as its Q4FY24 net profit declines by 12.1% YoY to Rs 35.6 crore due to an increase in employee benefit expenses. Revenue decreases by 4.9% YoY to Rs 234.2 crore on reduced rural sales. It appears in a screener of stocks with declining net cash flow.

  • TVS Motor rises as its Q4FY24 net profit increases by 15.1% YoY to Rs 387 crore and revenue grows by 23.5% YoY. EBITDA margin also improves by 100 bps to 11.3%. The company appears in a screener for stocks that have received broker price or recommendation upgrades in the past month.

  • Kirloskar Oil Engines rises sharply to its all-time high of Rs 1,169.9 as its Q4FY24 net profit surges by 88.3% YoY to Rs 148.6 crore. Revenue increases by 20% YoY to Rs 1,660 crore, owing to improvements in the B2B and B2C segments. It features in a screener of stocks where mutual funds have increased their shareholding in the past month.

  • Nomura initiates coverage on Hindustan Aeronautics and Bharat Electronics with a ‘Buy’ rating and target prices of Rs 4,750 and Rs 300, respectively. The brokerage projects significant growth for India’s defence sector, driven by increasing defence budgets, modernization, and the Centre’s focus on indigenous manufacturing. Nomura sees a $138 billion opportunity for the industry over FY24-32.

  • Alembic Pharmaceuticals receives US FDA approval for multiple products, including diazepam injections for managing anxiety disorders, selexipag tablets for treating pulmonary arterial hypertension, and binimetinib tablets, a kinase inhibitor.

  • DLF announces approximately Rs 5,590 crore in sales from its luxury residential project, DLF Privana West. The development spans over 12.6 acres and includes 795 residences across five towers.

  • Rail Vikas Nigam bags an order worth Rs 167.3 crore from South Eastern Railway to upgrade the electric traction system at the Chakradharpur division.

  • NBCC (India) is rising as it bags work orders worth Rs 400 crore from the Supreme Court for constructions in Chhattisgarh and Kerala.

  • Nifty 50 was trading at 22,300.15 (-2.4, 0.0%), BSE Sensex was trading at 73,324.97 (-141.4, -0.2%) while the broader Nifty 500 was trading at 20,726 (21.1, 0.1%).

  • Market breadth is overwhelmingly positive. Of the 1,805 stocks traded today, 1,241 showed gains, and 509 showed losses.

Riding High:

Largecap and midcap gainers today include Adani Power Ltd. (612.80, 5.5%), One97 Communications Ltd. (333, 5%) and TVS Motor Company Ltd. (2,063.60, 3.4%).

Downers:

Largecap and midcap losers today include Larsen & Toubro Ltd. (3,275.45, -6.1%), NHPC Ltd. (93.65, -5.3%) and United Breweries Ltd. (1,910.70, -5.2%).

Volume Rockets

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

Top high volume gainers on BSE included SKF India Ltd. (4,935, 8.0%), Adani Power Ltd. (612.80, 5.5%) and Tata Investment Corporation Ltd. (6,874.10, 5.0%).

Top high volume losers on BSE were Piramal Enterprises Ltd. (815.80, -8.9%), Manappuram Finance Ltd. (165.80, -7.9%) and Larsen & Toubro Ltd. (3,275.45, -6.1%).

Prism Johnson Ltd. (154.05, 0.2%) was trading at 14.6 times of weekly average. Campus Activewear Ltd. (253.20, 2.4%) and Jupiter Wagons Ltd. (420.25, 2.9%) were trading with volumes 12.8 and 9.9 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

11 stocks made 52 week highs, while 9 stocks were underachievers and hit their 52 week lows.

Stocks touching their year highs included - Eicher Motors Ltd. (4,568.05, -0.7%), Mahindra & Mahindra Ltd. (2,212.55, 1.4%) and State Bank of India (819.80, 1.1%).

Stocks making new 52 weeks lows included - Asian Paints Ltd. (2,710.10, -4.7%) and Bata India Ltd. (1,298.55, -1.7%).

5 stocks climbed above their 200 day SMA including SKF India Ltd. (4,935, 8.0%) and CSB Bank Ltd. (356.85, 0.9%). 28 stocks slipped below their 200 SMA including Orient Electric Ltd. (214.70, -6.6%) and Chemplast Sanmar Ltd. (457.45, -5.3%).

 
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The Baseline
08 May 2024, 06:57PM
By Satyam Kumar

The Nifty 500 gained 39.1% in FY24, and 17% since our last analysis of top Nifty500 contributors in October 2023. Higher government spending on infrastructure and railways has made Indian Railways Finance Corp. (IRFC), REC, and Larsen & Toubro the most consistent performers, taking them to the top 15 of highest Nifty500 contributors.

In the past month, the Nifty500 has been trading sideways as Nifty VIX, representing the market volatility, rose sharply by 50% over the same time period. What traders call the ‘fear gauge’ has been rising amid concerns that the ruling party may win fewer seats than initially expected.

In this edition of Chart of the Week, we look at the top 15 stocks that drove the Nifty500’s rise in FY24. These stocks accounted for 26.6% of the Nifty500’s 39.1% gain, which translated to an overall contribution of 10.4 percentage points. 

To understand which were the top stocks that drove the surge in the index, we tracked the change in market capitalization for stocks in the Nifty500 and compared it to the total change in the index market cap.

PSU stocks increase their contribution to the Nifty500 index

Among the 15 stocks on our list, three belong to the public sector, specifically the banking and finance domain. Within this sector, IRFC and REC represent financial institutions, while the Life Insurance Corporation of India is from the life insurance industry. The top performer among the three, IRFC rose 458% in FY24, contributing 3.4% to Nifty500’s gains. Meanwhile, LIC of India and REC registered gains of 70.7% and 295.3% in the past fiscal year driving the Nifty500 higher by 1.7% and 1.4% respectively.

Hindustan Aeronautics, a defence company, has risen sharply by 153.2% in the past fiscal year, contributing 1.4% to Nifty500’s gains. The company reported revenue growth of 11% YoY to Rs 29,810 crore in FY24 benefiting from the government’s defence outlay in the budget, which rose by 13% YoY to Rs 5.9 lakh crore in FY24. UBS expects the company’s order book to triple to Rs 2.4 lakh crore by FY26, from that of Rs 80,000 crore at the end of FY23.

Meanwhile, construction company Larsen & Toubro witnessed a 76.4% rise in FY24, contributing 1.6 percentage points to Nifty500’s annual gain. This growth was fueled by the government’s increased infra spending, with a 33% higher allocation of Rs 10 lakh crore for capex in the infrastructure sector in the FY24 budget. In addition, order inflow from international markets from the hydrocarbon and infrastructure segment in Saudi Arabia and the Middle East also boosted its growth.

Reliance and Bharti Airtel gain from market consolidation in the telecom space

In FY24, the oil and gas company Reliance Industries’ share price increased 32.2%, contributing 2.6% to the Nifty500’s overall gain. The company’s EBITDA for FY24 increased 16.1% YoY to Rs 1,78,677 crore, driven by significant growth in its retail and telecom divisions.

Similarly, telecom company Bharti Airtel saw its share price rise by 64.2% in FY24, contributing 1.8% to Nifty500’s gains. The company’s consistent market share expansion and organic improvements in average revenue per user have boosted the company’s profit margins. The company also stands to benefit from a probable tariff hike post-election in H1FY24, as indicated by Chairman, Sunil Bharti Mittal.

Meanwhile, IT major Tata Consultancy Services added 1.4% to Nifty500 as its share price surged 24.4% over the past fiscal year. In FY24, the company witnessed a 25.2% YoY increase in deal wins, with a total contract value amounting to USD 42.7 billion.

Top Adani Group companies surge to pre-Hindenburg levels

Three Adani group companies have made it to the top 15 list, as they rise above pre-Hindenburg levels. The three stocks, namely Adani Enterprises, Adani Ports & SEZ, and Adani Power witnessed impressive gains of 99.7%, 126.1%, and 207.1% respectively in FY24.

However, this surge was also due to a lower base after a substantial correction in the share prices of Adani Group stocks, after allegations from Hindenburg Research that accused Gautam Adani of stock manipulation and accounting fraud.

Even though Adani claimed that the accusations were false, the conglomerate is making an effort to address issues highlighted in the report by repaying debt and reducing promoter share pledges. Investments from GQG Partners, and securing projects such as Dharavi redevelopment have also played to their advantage.

Rising consumer demand drives realty and auto stocks higher

DLF, a realty company, gained 157% in FY24, helping drive Nifty500 higher by 1.4% in the fiscal. This was led by a demand surge for residential properties across top cities in India. The company sold 1,113 luxury apartments priced above Rs 7 crore in Gurugram, generating Rs 7,200 crore in just three days after launch.

In the automobile space, high demand drove Bajaj Auto and Tata Motors' share prices higher by 141% and 147% contributing 1.5% and 2% respectively to Nifty500’s gains in FY24.  Meanwhile, rising discretionary spending and the introduction of platform fees fueled Zomato’s share price growth of 262% in FY24. This resulted in the company’s contribution of 1.7% to Nifty500’s gains in the past fiscal year.

 
Trendlyne Marketwatch
Trendlyne Marketwatch
08 May 2024, 03:45PM
Market closes flat, Sonata Software's Q4 revenue falls by 12.1% QoQ to Rs 2,191.6 crore
By Trendlyne Analysis

Nifty 50 closed at 22,302.50 (0, 0%), BSE Sensex closed at 73,466.39 (-45.5, -0.1%) while the broader Nifty 500 closed at 20,704.90 (68.9, 0.3%). Of the 2,072 stocks traded today, 1,203 were in the positive territory and 825 were negative.

Indian indices pared the gains from the afternoon session and closed in the red. The volatility index, Nifty VIX, rose by 0.4% and closed at 17.1 points. Hero MotoCorp's Q4FY24 net profit rose 16.4% YoY to Rs 943.5 crore and revenue improved by 12.9% YoY.

Nifty Midcap 100 and Nifty Smallcap 100 closed higher with the benchmark index closing flat. Nifty Metal and Nifty Oil & Gas closed higher than Tuesday’s closing level. According to Trendlyne’s sector dashboard, metals & mining emerged as the top-performing sector of the day, with a rise of over 1.8%.

Most European indices trade in the green, except for Italy’s FTSE MIB trading flat. US indices futures trade flat, indicating a cautious start. Brent crude prices dropped by 1.2% today as the oil inventories in the US rose by 5,09,000 barrels in the past week.

  • Relative strength index (RSI) indicates that stocks like Marico, Schaeffler India, Emami and Timken India are in the overbought zone.

  • Hero MotoCorp's Q4FY24 net profit rises 16.4% YoY to Rs 943.5 crore and revenue improves 12.9% YoY. Its EBITDA margin stands at 14.3%, up by 120 basis points YoY. The company appears in a screener for stocks with increasing profits for the past two quarters.

  • Delta Corp partners with Alpha Alternatives Fund Advisors and Peninsula Land to set up a real estate development platform. The companies plan to deploy Rs 765 crore for residential redevelopment in Mumbai, Alibagh, Khopoli, Karjat, and Pune.

  • Cipla gets an observation from the US FDA after its current Good Manufacturing Practices inspection at the firm's manufacturing facility in Kurkumbh, Maharashtra.

  • V Anatha Nageswaran, Chief Economic Adviser to the Government of India, expects the country's economy to grow by over 7% in FY25. He also projects that the economy will continue to grow by 6.5-7% for a decade, driven by infrastructure investment.

  • TBO Tek's Rs 1,550.8 crore IPO gets bids for 0.6X the available 92.9 lakh shares on offer on the first day of bidding. The retail investor quota gets bids for 1.8X the available 16.8 lakh shares on offer.

  • Aadhar Housing Finance's Rs 3,000 crore IPO gets bids for 0.3X the available 7 crore shares on offer on the first day of bidding. The retail investor quota gets bids for 0.2X the available 3.5 crore shares on offer.

  • Indegene's Rs 1,841.8 crore IPO gets bids for 19.7X the available 2.9 crore shares on offer on the third day of bidding. The retail investor quota gets bids for 5.9X the available 1.5 crore shares on offer.

  • Vimal Kejriwal, Managing Director of KEC International, highlights the company’s target to achieve revenue growth of 15% and EBITDA margins of 7.5% in FY25. He adds that revenue has declined by Rs 300-400 crore in Q4 due to supply chain issues.

  • Pidilite Industries falls sharply as its net profit misses Forecaster estimates by 27.5% despite growing 6.2% YoY to Rs 300.6 crore in Q4FY24. Revenue grows by 7.9% YoY to Rs 2,901.9 crore, helped by the consumer & bazaar and b-2-b segments. It appears in a screener of stocks where promoters are decreasing their shareholding.

  • Jindal Saw falls sharply as its net profit declines by 4% QoQ to Rs 502.2 crore in Q4FY24 despite growing by 40.6% YoY. Revenue grows by 4.6% YoY to Rs 542.5 crore owing to an improvement in the iron & steel segment. It appears in a screener of stocks outperforming their industries over the past week.

  • United Breweries’ Q4FY24 net profit surges 8.3X to Rs 81.5 crore. Its revenue rises by 17.3% YoY, driven by growth in the premium segment. The company’s sales volume increases 10.9% YoY, led by the South and East regions.

  • Morgan Stanley upgrades Container Corp of India to ‘Equal-weight’ and raises the target price to Rs 1,076. The brokerage notes the increase in the share of rail in India’s freight mix. It expects strong growth in the company’s volumes, driven by the commissioning of western DFC (dedicated freight corridor), and continued growth momentum for domestic containers.

  • PSE stocks like REC, Power Finance Corp, GAIL (India) and Steel Authority of India (SAIL) are rising in trade. The broader sectoral index, Nifty PSE, is also trading in the green.

  • Axis Direct keeps its 'Buy' rating on Aarti Drugs with a target price of Rs 570 per share. This indicates a potential upside of 19.1%. The brokerage believes that the company's exports will improve on expectations of interest rate deductions, low stock levels and a rise in demand. It expects the company's revenue to grow at a CAGR of 8.2% over FY24-26.

  • Indraprastha Gas rises as its Q4FY24 net profit increases by 9.1% YoY to Rs 433.8 crore, while its revenue declines 2% YoY. The company's total sales volume grows 4% YoY to 3,084.5 million standard cubic metres. The company appears in a screener for stocks with no debt.

  • Vivek Lohia, Managing Director of Jupiter Wagons, expects significant growth in FY25 due to the company’s strong order book. He highlights the company’s target to achieve revenue of Rs 2,000-3,000 crore in the wheels business. Lohia sees order inflows resuming after the ongoing elections.

  • Larsen & Toubro bags multiple orders worth Rs 5,000-10,000 crore from Indian and international clients. The orders include setting up two 150 MW AC floating solar panels in India and a 400 kV gas-insulated substation in Kuwait.

  • Sonata Software plunges over 12% as its Q4FY24 revenue falls by 12.1% QoQ to Rs 2,191.6 crore, impacted by declines in both Indian and international businesses. However, it posts a net profit of Rs 110.4 crore during the quarter, compared to a loss of Rs 46.2 crore in Q4FY23, helped by reduced costs of raw materials and tax. It shows up in a screener of stocks with more than 20% fall in price over the past month.

  • Aadhar Housing Finance raises Rs 897.9 crore from anchor investors ahead of its IPO by allotting 2.8 crore shares at Rs 315 each. Investors include Morgan Stanley, Nepean Long Term Opportunities Fund, CLSA Global, Theleme India Master Fund, and Clarus Capital. Meanwhile, TBO Tek raises Rs 696.5 crore from anchor investors, including Nomura Funds, Goldman Sachs, HSBC Global, and Fidelity Funds.

  • Retail sales for the automotive industry rise 26.7% YoY to 22.1 lakh units in April, shows data from the Federation of Automotive Dealers' Association. Two-wheeler retail sales are up 33.2% YoY, while cars increase by 15.9% YoY. FADA notes that growth in the 2W and PV segments is driven by new launches.

  • Patel Engineering's joint venture wins an irrigation project worth Rs 342.8 crore from the Office of the Executive Engineer, Government of Maharashtra. The contract is for the construction of a water lifting arrangement.

  • Voltas falls as its Q4FY24 net profit declines 19.1% YoY to Rs 116.4 crore, despite a 41.8% YoY rise in revenue. The drop in profit is attributed to rising raw material and inventory costs. The company appears in a screener for stocks with increasing revenue for the past two quarters.

  • JSW Energy is rising as its net profit grows by 29.1% YoY to Rs 351.3 crore in Q4FY24, helped by lower fuel costs. Revenue increases by 3.2% YoY to Rs 2,755.9 crore on the back of improvements in the renewable energy portfolio, greenfield capacity additions and higher thermal generation. Additionally, the company's board has approved a Rs 10,000 crore fundraising in multiple tranches via a preferential issue, private issue or qualified institutional placement (QIP).

  • Dr Reddy's Laboratories' net profit grows by 36.3% YoY to Rs 1,307 crore in Q4FY24. Revenue rises by 12.5% YoY to Rs 7,083 crore during the quarter, owing to the North America, Europe and emerging markets segments. It features in a screener of stocks near their 52-week highs with significant volumes.

Riding High:

Largecap and midcap gainers today include Bharat Forge Ltd. (1,405.15, 13.3%), Hindustan Zinc Ltd. (471.85, 5.8%) and REC Ltd. (534, 5.3%).

Downers:

Largecap and midcap losers today include Gujarat Fluorochemicals Ltd. (3,306.70, -5.8%), Voltas Ltd. (1,318.80, -5.1%) and One97 Communications Ltd. (317.15, -5%).

Volume Rockets

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

Top high volume gainers on BSE included Bharat Forge Ltd. (1,405.15, 13.3%), Balaji Amines Ltd. (2,296.90, 9.9%) and Capri Global Capital Ltd. (233.25, 9.5%).

Top high volume losers on BSE were Sonata Software Ltd. (540.05, -15.4%), Voltas Ltd. (1,318.80, -5.1%) and JSW Energy Ltd. (557.25, -4.6%).

Quess Corp Ltd. (626.70, -0.4%) was trading at 9.3 times of weekly average. CreditAccess Grameen Ltd. (1,428.65, 0.6%) and Alkyl Amines Chemicals Ltd. (2,099.90, 4.8%) were trading with volumes 7.7 and 7.3 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

14 stocks made 52-week highs, while 5 stocks were underachievers and hit their 52-week lows.

Stocks touching their year highs included - Bharat Forge Ltd. (1,405.15, 13.3%), Escorts Kubota Ltd. (3,538.40, 2.8%) and Finolex Industries Ltd. (276.70, -2.6%).

Stocks making new 52-week lows included - Berger Paints (India) Ltd. (501.30, -2.3%) and The Ramco Cements Ltd. (765, 1.1%).

12 stocks climbed above their 200 day SMA including Balaji Amines Ltd. (2,296.90, 9.9%) and Chemplast Sanmar Ltd. (483.05, 5.5%). 18 stocks slipped below their 200 SMA including Sonata Software Ltd. (540.05, -15.4%) and SRF Ltd. (2,339.10, -3.2%).

 
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The Baseline
07 May 2024, 05:49PM
5 stocks to buy from analysts this week - May 7, 2024
By Abhiraj Panchal

1. UltraTech Cement:

ICICI Direct maintains a ‘Buy’ rating on this cement manufacturer with a target price of Rs 12,430. This indicates a potential upside of 27.1%. In Q4FY24, the company’s revenue went up by 9.4% YoY to Rs 20,554.6 crore, and its net profit increased 35.6% YoY to Rs 2,258.1 crore. This surge in profit was on the back of improved EBITDA per ton at Rs 1,089 in FY24 from Rs 1,005 a year ago. The company reported volume growth of 13% YoY in FY24.

Analysts Vijay Goel and Ankit Shah expect EBITDA per ton to further improve to Rs 1,255 by FY26. They expect further cost reduction of Rs 200-300 per ton leading to improvement in EBITDA over the next three years. They attribute this development to be led by higher usage of low-cost energy from renewable sources and optimising freight costs. They forecast that volumes will grow from 119.1 million tonnes per annum (mtpa) in FY24 to 144 mtpa by FY26 due to capacity expansion of 21.5 mtpa. Analyst Goel and Shah say, “UltraTech is strongly placed to benefit from its aggressive capacity addition plans and its focus on further reducing its cost structure.” Goel and Shah also estimate revenue to grow at 10.8% CAGR over the same period.

2. Maruti Suzuki India:

KR Choksey maintains its ‘Buy’ call on this car manufacturer with a target price of Rs 14,975, indicating an upside of 20.4%. In Q4FY24, Maruti Suzuki reported a 48% YoY growth in its net profit to Rs 3,952.3 crore, while its revenue grew by 20.9% YoY. It sold 5.8 lakh units during the quarter, up by 13.4% YoY. Analyst Unnati Jadhav says, “Maruti Suzuki’s volume growth in terms of domestic business and exports was better than the industry’s.”

Jadhav says that the sequential decline in average realizations led to slightly lower revenue, 1.5% lower than estimated, while sequential gross margin pressure led to lower-than-estimated EBITDA and margin. 

However, the analyst continues to be positive about the firm’s growth due to its capex plans in the medium term, focus on high-demand spaces (SUVs, CNG, and hybrids) along with penetration in electric vehicles, and strength in export markets. She expects margins to be largely steady on the back of better realization and cost reduction. She estimates a revenue and profit CAGR of 12.6% each over FY25-FY26.

3. Ajanta Pharma:

BOB Capital Markets maintains a ‘Buy’ call on this pharma company with a target price of Rs 2,585, indicating an upside of 7.1%. In Q4FY24, the company’s profit rose 65.8% YoY to Rs 202.7 crore while revenue increased by 18.6% YoY. The analyst Saad Shaikh says that the growth was led by a reduction in API prices, logistics costs and tailwinds from increased product shortages in the US.

Shaikh is optimistic about the firm because it has 22 products awaiting US FDA approval, and expects to launch six to eight products in FY25. He believes this will lead to an overall growth of 5-8% in the US business. In India, the analyst expects the company to maintain a 200-300 basis points outperformance over the Indian pharma market for FY25.

Although Ajanta’s management expects logistics costs to escalate due to the ongoing Red Sea crisis, Shaikh says that the EBITDA margin should hold at its current level in FY25. He anticipates Ajanta Pharma achieving a 13% revenue CAGR over FY25-FY26, driven by its continued outperformance over the Indian Pharma Market (IPM), recovery in the US, strong growth in recent quarters, and a good outlook due to the launch of new products.

4. KPIT Technologies:

Axis Direct maintains a ‘Buy’ rating on this IT consulting firm with a target price of Rs 1,750. This indicates a potential upside of 15.6%. In Q4FY24, the company’s revenue increased 30.4% YoY to Rs 1,334.4 crore, while its net profit rose by 47.3% YoY to Rs 164.4 crore. Analyst Omkar Tanksale says, “Strong revenue growth momentum will continue backed by robust deal wins and strong addition of capabilities.”

Tanksale is upbeat as the company outperformed its estimates on all fronts. He attributes this quarter’s 10 bps rise in profit margin  to strong volume growth and a favourable currency mix. He is also positive about future revenue visibility as the company has multiple long-term contracts with the world’s leading automotive players. Tanksale expects KPIT to be one of the fastest-growing companies in Indian IT services moving forward. 

5. Poonawalla Fincorp:

Motilal Oswal reiterates a ‘Buy’ call on this finance company with a target price of Rs 570. This indicates an upside of 19.2%. In Q4FY24, the company’s net profit rose 83.6% YoY to Rs 331.7 crore (beating the brokerage’s estimate) and its net interest income increased by 48% YoY (in-line with the brokerage’s estimates). 

Analysts Abhijit Tibrewal, Gautam Rawtani and Nitin Aggarwal say, “Poonawalla Fincorp is committed to boosting its productivity through digitization and is preparing for growth by introducing new products such as co-branded credit cards (to be launched in the next 2-3 weeks).” The analysts say that the company has laid down a robust foundation for sustainable profitability through initiatives that will lead to lower operating costs, higher business volumes, and robust asset quality. 

The analysts estimate AUM and profit growth of 37% and 39% CAGR over FY25-FY26. They believe that the segments focused by the firm, namely consumer and small business finance, have a huge market opportunity and expect the firm to maintain its NIM of more than 9% over FY25-FY26.

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

(You can find all analyst picks here)

 
Trendlyne Marketwatch
Trendlyne Marketwatch
07 May 2024, 03:54PM
Market closes lower, Kajaria Ceramics' net profit falls 5.2% YoY to Rs 102.4 crore in Q4

Nifty 50 closed at 22,302.50 (-140.2, -0.6%), BSE Sensex closed at 73,511.85 (-383.7, -0.5%) while the broader Nifty 500 closed at 20,636.05 (-228.9, -1.1%). Market breadth is sharply down. Of the 2,077 stocks traded today, 420 were on the uptick, and 1,627 were down.

Indian indices maintained the losses from the afternoon session and closed in the red. The volatility index, Nifty VIX, rose by 2.5% and closed at 17 points. Jaiprakash Associates, the flagship company of Jaypee Group, defaulted on a loan repayment of Rs 4,616 crore due on April 30.

Nifty Midcap 100 and Nifty Smallcap 100 closed lower following the benchmark index. Nifty FMCG and Nifty IT closed higher than Monday’s closing level. According to Trendlyne’s sector dashboard, FMCG emerged as the top-performing sector of the day, with a rise of over 3.7%. 

Most European indices trade in the green. US indices futures trade flat, indicating a cautious start. The Reserve Bank of Australia maintained its interest rates at 4.35% as inflation remained sticky at 3.6% in the first quarter of 2024. The central bank further stated that the rate cuts can only be expected after the first half of 2025.

  • Godrej Consumer Products sees a long buildup in its May 30 future series as its open interest rises 15.1% with a put-call ratio of 0.7.

  • Kajaria Ceramics' net profit falls by 5.2% YoY to Rs 102.4 crore in Q4FY24 due to increased costs for raw materials, employee benefits, and finance. However, revenue grows by 3% YoY to Rs 1,240.8 crore, driven by improved sales of tiles. It appears in a screener of stocks with zero promoter pledge.

  • Graphite India falls sharply as its net profit declines by 44.8% YoY to Rs 16 crore in Q4FY24. Revenue falls by 11.7% YoY to Rs 720 crore, impacted by the graphite and carbon segment. It appears in a screener of stocks with declining net profit and profit margin (YoY).

  • Aditya Saraogi, CFO of Birla Corp, expects a boost in demand post-elections, but sees a short-term impact due to monsoons. He sees higher EBITDA from the Mukutban unit, with volumes at 2.7 MT in FY25.

  • Tata Motors' arm, Jaguar Land Rover, reports a 19% YoY increase in UK wholesales to 5,627 units in April 2024. Jaguar's wholesales grow by 92%, while Land Rover sales rise by 7%.

  • Jaiprakash Associates, the flagship company of Jaypee Group, defaults on a loan repayment of Rs 4,616 crore due on April 30.

  • Indegene's Rs 1,841.8 crore IPO gets bids for 4.5X the available 2.9 crore shares on offer on the second day of bidding. The retail investor quota gets bids for 3.1X the available 1.5 crore shares on offer.

  • JSW Energy reportedly nears completion of a technology transfer partnership with a Chinese lithium-ion cell manufacturer. The partnership aims to set up a 60,000-tonne lithium-ion refinery and cell factory in Odisha.

  • Marico surges as its net profit rises 5.3% YoY to Rs 318 crore as input cost and tax expenses fall. Its revenue declines marginally to Rs 2,293 crore. The company appears in a screener for stocks with low debt.

  • KR Choksey upgrades ACC to 'Buy' from 'Accumulate' with an improved target price of Rs 2,923. This indicates a potential upside of 19.5%. The brokerage says that synergies derived from the parent company will help support strong volume growth and enhanced margins for the cement & cement products manufacturer. It expects the company's revenue to grow at a CAGR of 8.8% over FY24-26.

  • DCM Shriram is falling sharply as its net profit plunges by 36.9% YoY to Rs 117.8 crore in Q4FY24 due to higher excise duty on sale of goods, employee benefits and finance costs. Revenue declines by 11.1% YoY to Rs 2,531.2 crore, impacted by the chloro-vinyl, sugar, bioseed and fertiliser segments. It features in a screener of stocks with growing costs YoY of long-term projects.

  • Kotak Institutional Equities predicts that new regulations on the recycling and reuse of plastic packaging could hurt FMCG companies such as Colgate-Palmolive India, Nestle, and Britannia due to increased packaging costs. However, the firm identifies companies like ITC, Uflex, and EPL as major beneficiaries, as they can offer recyclable solutions and economical alternatives to plastics.

  • Hindustan Zinc's board approves interim dividend of Rs 10 per equity share, amounting to Rs 4,225.3 crore, for FY25. The record date for the purpose of payment is set as May 15, 2024.

  • IRB Infrastructure Developers' April 2024 toll collection rises 29.5% YoY to Rs 502.8 crore. The company registered a 24% YoY growth in toll revenue for FY24.

  • Gland Pharma receives US FDA approval for its plerixafor injection, a generic equivalent of Genzyme Corp's MOZOBIL injection. The injection is used to treat lymphoma and multiple myeloma and has a market size of $152 million for the year ending January 2024, according to IQVIA.

  • Natarajan Srinivasan, MD and CEO of CG Power and Industrial Solutions, expects revenue growth of 20-25%, with margins at 15% in FY25. He highlights pressures in the motor business but expects improvement post-elections. Srinivasan adds that the motor business' market share has improved to 38%.

  • Redington's step-down subsidiary, Arena Bilgisayar Sanayi Ve Ticaret, sells 100% of the equity in its arm, Paynet eme Hizmetler, to Iyzi Payment and Electronic Money Services for $87 million, plus net cash of approximately $5 million.

  • FMCG stocks like Hindustan Unilever, Nestle India, Godrej Consumer Products, Britannia Industries, and Tata Consumer Products, are rising in trade. The broader sectoral index, Nifty FMCG, rises more than 2%.

  • Lupin is falling as its net profit misses Forecaster estimates by 28.5% despite growing by 52.3% YoY to Rs 359.4 crore in Q4FY24. Revenue grows by 13% YoY to Rs 4,895.1 crore, helped by an improvement in the India, North America, Growth Markets and EMEA markets. It shows up in a screener of stocks with increasing net profit for the past four quarters.

  • Morgan Stanley initiates coverage on Titagarh Rail Systems with an ‘Overweight’ rating and target price of Rs 1,285. The brokerage sees a strong recovery in India’s railways and believes the company will be a major beneficiary. It expects a 28% earnings CAGR for Titagarh over FY24-27.

  • Tube Investments of India enters into an agreement with South Asia Growth lnvest lll LLC and South Asia EBT Trust lll (GEF) to subscribe to equity shares and compulsorily convertible preference (CCP) shares in Tl Clean Mobility for Rs 580 crore.

  • Gillette India's Managing Director L V Vaidyanathan resigns to pursue other interests. His resignation is effective from April 30, 2024.

  • Va Tech Wabag wins a consortium order worth 34 million euros from Office National De L’assainissement for developing a wastewater treatment plant in Tunisia.

  • Godrej Consumer Products posts a net loss of Rs 1,893.2 crore in Q4FY24, compared to a net profit of Rs 452 crore in Q4FY23, due to an increase in employee benefits and advertisement expenses. Revenue grows by 6.1% YoY to Rs 3,365.1 crore owing to improvements in the home care, personal care and Park Avenue businesses. It appears in a screener of stocks with declining net cash flow.

  • Nifty 50 was trading at 22,463.75 (21.1, 0.1%), BSE Sensex was trading at 73,983.16 (87.6, 0.1%) while the broader Nifty 500 was trading at 20,853.10 (-11.9, -0.1%).

  • Market breadth is in the red. Of the 1,860 stocks traded today, 833 were gainers and 962 were losers.

Riding High:

Largecap and midcap gainers today include Marico Ltd. (583.50, 10.0%), Godrej Consumer Products Ltd. (1,322.35, 5.8%) and Hindustan Unilever Ltd. (2,379.40, 5.5%).

Downers:

Largecap and midcap losers today include SRF Ltd. (2,416.85, -6.6%), JSW Energy Ltd. (584.05, -5.4%) and YES Bank Ltd. (22.85, -5.2%).

Volume Shockers

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

Top high volume gainers on BSE included Jyothy Labs Ltd. (456.55, 10.2%), Marico Ltd. (583.50, 10.0%) and Godrej Consumer Products Ltd. (1,322.35, 5.8%).

Top high volume losers on BSE were SRF Ltd. (2,416.85, -6.6%), Route Mobile Ltd. (1,456.70, -5.1%) and Century Textiles & Industries Ltd. (1,843.30, -4.6%).

Chalet Hotels Ltd. (878, 1.8%) was trading at 12.8 times of weekly average. Happiest Minds Technologies Ltd. (821.95, 2.0%) and IIFL Finance Ltd. (389, 2.1%) were trading with volumes 9.6 and 8.7 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

15 stocks overperformed with 52 week highs, while 5 stocks were underachievers and hit their 52 week lows.

Stocks touching their year highs included - Zydus Lifesciences Ltd. (980.85, -3.9%), Colgate-Palmolive (India) Ltd. (2,861.40, 0.1%) and Finolex Industries Ltd. (283.95, 4.2%).

Stocks making new 52 weeks lows included - The Ramco Cements Ltd. (756.85, -1.4%) and Syngene International Ltd. (669.05, -0.7%).

12 stocks climbed above their 200 day SMA including Marico Ltd. (583.50, 10.0%) and Dabur India Ltd. (558.45, 5.2%). 25 stocks slipped below their 200 SMA including Ceat Ltd. (2,349.20, -5.9%) and Gujarat Narmada Valley Fertilizers & Chemicals Ltd. (650.70, -4.1%).

 
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
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
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.