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Trendlyne Marketwatch
Trendlyne Marketwatch
03 Jun 2024
Market closes higher, NMDC's total sales fall by 22% YoY to 2.8 million tonnes in May
By Trendlyne Analysis

Nifty 50 closed at 23,263.90 (733.2, 3.3%), BSE Sensex closed at 76,468.78 (2507.5, 3.4%) while the broader Nifty 500 closed at 21,797.40 (694.1, 3.3%). Market breadth is in the green. Of the 2,180 stocks traded today, 1,397 showed gains, and 744 showed losses.

Indian indices maintained the gains from the afternoon session and closed in the green. The volatility index, Nifty VIX, dropped by 14.9% and closed at 20.9 points. Welspun Corp’s associate, East Pipes Integrated Company for Industry (EPIC), bagged orders worth Rs 3,670 crore from Saudi Arabian Oil Company. The order is to manufacture and supply steel pipes in the next 19 months. 

Nifty Midcap 100 and Nifty Smallcap 100 closed higher following the benchmark index. All major sectoral indices closed higher than Friday’s closing level. According to Trendlyne’s sector dashboard, utilities emerged as the top-performing sector of the day, with a rise of over 7.9%.

Most European indices trade in the green. US indices futures trade higher, indicating a positive start. China’s manufacturing PMI for May expands to 51.7 against estimates of 51.6.

  • PI Industries sees a short buildup in its June 27 future series as its open interest rises 15.1% with a put-call ratio of 0.8.

  • Navin Fluorine International appoints Nitin G Kulkarni as Managing Director of the company for five years, effective from June 24, 2024.

  • IRB Infrastructure Developers rises more than 9% as the National Highways Authority of India (NHAI) announces a hike in toll prices by 5% starting today. The hike is part of the yearly revision based on changes in wholesale price index inflation.

  • NMDC's total sales fall by 22% YoY to 2.8 million tonnes in May as its production declines 37% YoY to 2.3 million tonnes.

  • According to ICRA, domestic steel consumption grows by 11.3% between February and April 2024. The firm revises its FY25 steel demand growth target to 9-10% YoY compared to the earlier estimate of 7-8%, as it expects better realizations and higher deliveries in FY25.

  • Axis Direct downgrades Ahluwalia Contracts to 'Hold' from 'Buy' with a higher target price of Rs 1,160 per share. This indicates a potential downside of 4.1%. The brokerage notes the company’s quarterly performance was backed by robust execution but anticipates a softer Q1FY25 due to election-related disruptions. It expects the company's revenue to grow at a CAGR of 12.9% over FY25-26.

  • Kronox Lab Sciences' Rs 130.2 crore IPO gets bids for 5.9X the available 67 lakh shares on offer on the first day of bidding. The retail investor quota gets bids for 8X the available 33.5 lakh shares on offer.

  • Foreign investor CMDB II sells 18.8 lakh shares (4% stake) of CarTrade Tech, amounting to Rs 168.8 crore, in a bulk deal on Friday. Meanwhile, TT Emerging Markets picks a 1.2% stake in the company.

  • India’s manufacturing PMI moderates to a three-month low of 57.5 in May, from 58.8 in April, due to a slightly slower growth in new orders and output. The PMI missed estimates of 58.4 as some companies reduced working hours due to intense heatwaves, impacting volumes.

  • Shriram Finance rises sharply as it secures $425 million (approx. Rs 3,530.9 crore) and EUR 40 million (approx. Rs 360.7 crore) through a syndicated term loan transaction.

  • PSU bank stocks like Bank of Baroda, State Bank of India, Central Bank of India, and Canara Bank are rising in trade. The broader sectoral index, Nifty PSU Bank, is also trading in the green.

  • JSW Steel launches JSW Magsure, a new patented zinc, magnesium, and aluminium alloy-coated steel product, designed for use in highly corrosive environments.

  • According to data from the National Payments Corp of India, UPI (unified payments interface) transactions rise 49% YoY to a record 14 billion in May, up from 13.3 billion in April.

  • Ashoka Buildcon hits an all-time high of Rs 200 per share as it bags orders worth Rs 2,153 crore from MSRDC for bridge construction projects in Maharashtra.

  • Bajaj Auto’s wholesales rise marginally around 0.1% to 3.5 lakh units in May. Two-wheeler wholesales decline by 0.7% YoY, while commercial vehicle wholesales improved by 5%.

  • REC surges as its board approves raising the foreign borrowing limit to $24 billion. However, the overall borrowing limit in Indian rupees remains at Rs 6 lakh crore. The board also approves raising up to Rs 1.5 lakh crore through the private placement of non-convertible bonds.

  • According to data from the Finance Ministry, India's GST collections rise by 10% YoY to Rs 1.7 lakh crore in May, driven by an increase in revenues from domestic transactions and lower imports. The net GST revenue stands at Rs 1.4 lakh crore.

  • PNC Infratech rises sharply as its subsidiary, PNC Kanpur Highways, receives a Rs 398.6 crore settlement from the National Highways Authority of India (NHAI) under the Vivad Se Vishlvas Il (Contractual Disputes) scheme.

  • General Atlantic Singapore Fund, promoter of KFIN Technologies, sells a 5.8% stake in the company on Friday.

  • Suzlon Energy rises sharply as Morgan Stanley initiates coverage with an 'Overweight' rating and a target price of Rs 58.5 per share, indicating a potential upside of 17%. The brokerage believes the stock is stronger post-deleveraging and well-positioned to benefit from improving macro conditions.

  • India’s GDP grows by 7.8% in Q4FY24, surpassing the estimated 6.9%. For FY24, GDP growth rate stood at 8.2%, up from 7% in FY23.

  • Adani Ports & Special Economic Zone surges as its arm, Adani International Ports Holdings (AIPH), inks a concession agreement with the Tanzania Ports Authority to operate and manage a terminal at Dar es Salaam Port, Tanzania. AIPH has also entered into a share purchase agreement to acquire a 95% stake in Tanzania International Container Terminal Services for $39.5 million.

  • Inox Wind is rising as its board of directors approves the issuance of preference shares worth up to Rs 1,000 crore in multiple tranches on a private placement basis.

  • Welspun Corp rises as its associate, East Pipes Integrated Company for Industry (EPIC), bags orders worth SAR 1.7 billion (approx. Rs 3,670 crore) from Saudi Arabian Oil Co. The order is to manufacture and supply steel pipes in the next 19 months.

  • Aurobindo Pharma's subsidiary, TheraNym Biologics, enters a master service agreement (MSA) with Merck Sharp & Dohme Singapore Trading Pte (MSD) to expand its biologics manufacturing facilities. The company plans to invest Rs 1,000 crore for the expansion, which will help the company venture into the contract manufacturing operations (CMO) business.

  • Markets opened high. Nifty 50 was trading at 23,147.20 (616.5, 2.7%), BSE Sensex was trading at 76,583.29 (2,622.0, 3.6%) while the broader Nifty 500 was trading at 21,706.20 (602.9, 2.9%).

  • Market breadth is ticking up strongly. Of the 1994 stocks traded today, 1,866 were in the positive territory and 99 were negative.

Riding High:

Largecap and midcap gainers today include Adani Power Ltd. (874.50, 15.7%), GAIL (India) Ltd. (230.80, 13.0%) and Power Finance Corporation Ltd. (554.80, 12.7%).

Downers:

Largecap and midcap losers today include GlaxoSmithKline Pharmaceuticals Ltd. (2,494.70, -4.8%), Ipca Laboratories Ltd. (1,127.30, -2.2%) and Zomato Ltd. (175.45, -2.1%).

Movers and Shakers

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

Top high volume gainers on BSE included Adani Power Ltd. (874.50, 15.7%), GAIL (India) Ltd. (230.80, 13.0%) and Bank of Baroda (296.95, 12.1%).

Top high volume losers on BSE were Jyothy Labs Ltd. (393.90, -1.7%), GMM Pfaudler Ltd. (1,214.90, -1.5%) and Ratnamani Metals & Tubes Ltd. (3,359.55, -1.3%).

AIA Engineering Ltd. (3,684, 0.2%) was trading at 9.5 times of weekly average. RBL Bank Ltd. (261.25, 6.3%) and Cera Sanitaryware Ltd. (7,159.90, 2.2%) were trading with volumes 5.8 and 5.6 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

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

Stocks touching their year highs included - Adani Ports & Special Economic Zone Ltd. (1,583.95, 10.2%), Adani Power Ltd. (874.50, 15.7%) and Ambuja Cements Ltd. (670.80, 5.8%).

Stock making new 52 weeks lows included - Eureka Forbes Ltd. (425, -2.0%).

36 stocks climbed above their 200 day SMA including Esab India Ltd. (5,830, 9.7%) and Ramkrishna Forgings Ltd. (709.30, 6.5%). 6 stocks slipped below their 200 SMA including Vinati Organics Ltd. (1,707.95, -1.8%) and Mahindra Holidays & Resorts India Ltd. (399.25, -0.9%).

 
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The Baseline
31 May 2024
Five Interesting Stocks Today - May 31, 2024

1. InterGlobe Aviation (IndiGo): 

This airlines company fell by 3.3% on May 24 after announcing its Q4FY24 results. InterGlobe Aviation's (IndiGo) net profit missed Trendlyne’s Forecaster estimates by 25.9%, despite growing by 106.1% YoY to Rs 1,894.8 crore. The rise in profit was due to healthy demand for air travel, and also due to a deferred tax return of Rs 124.2 crore. However, the company highlighted that FY24 saw headwinds in the form of aircraft groundings. IndiGo currently has 70-80 aircraft grounded due to engine issues. 

During the quarter, revenue grew by 26.7% YoY to Rs 18,505.1 crore, thanks to improvements in passengers carried and higher capacity.IndiGo’s passengers carried grew by 14% YoY to 2.7 crore people over the quarter, while the seating capacity increased by 14.4% YoY. 

The company’s share price declined following its results announcement. Over the past year, however, its share price has risen 76.7%. During Indigo’s earnings call, Petrus Elbers, the CEO said,  “New travel trends are emerging, such as experiential travel, growth in the spirit of tourism, and increasing demand for international travel”. To keep up with these changing trends, the company announced plans to unveil business-class services by the end of the year. Currently, IndiGo offers only economy class, with a fleet size of 367 as of FY24. 

The airline, which has a dominant 60% market share in the domestic market, is now focusing on expanding its long-haul international operations. In April, it announced plans to foray into the wide-body aircraft space, and placed an order for 30 Firm Airbus A350-900 aircraft. Currently IndiGo has a pending order book of around 1,000 aircraft to be delivered up to 2035, offering long-term visibility. IndiGo has also planned partnerships and loyalty programs to boost its international presence. With this expansion and its move towards becoming a full-service airline, it will compete both with Air India and Vistara (whose merger is in progress) and with international carriers. 

Morgan Stanley has an ‘Overweight’ rating on IndiGo with an upgraded target price of Rs 5,142. The brokerage believes the company is set to change over the next few years, with loyalty programs, business class, and long-haul international plans. However, it expects near-term cost pressures but says the company has the right strategy, as travel trends are changing. 

2. Samvardhana Motherson International (Motherson Sumi):

This auto parts maker hit a new 52-week high of Rs 157 on Friday after surging 10.3% over the past week following its Q4 and FY24 results announcement. The company reported operating revenue growth of 20.4% YoY to Rs 27,058.2 crore for the quarter, beating Trendlyne’s Forecaster estimates by 3%. Its net profit rose 109.8% YoY to Rs 1,371.8 crore, beating estimates by an astonishing 70%.

The surge in net profit is mainly due to the compensation the company received for hyperinflation in Argentina. The finance cost also decreased by 16.3% YoY to Rs 63.8 crore. Motherson received board approval to raise Rs 5,000 crore through NCDs.

The company has announced six new greenfield projects in India, China, and Poland, adding to the 12 announced previously. It plans to invest Rs 2,000 crore in FY25 for these greenfield projects, with 70% allocated to non-automotive businesses such as aerospace, consumer electronics, as well as health and medical. Samvardhana’s aerospace subsidiary, AD Industries, has become a key supplier of structure and engine components to Boeing and Airbus.

Chairman Vivek Sehgal said, “The majority of growth capex is in emerging markets, and our 18 greenfields are on track to come onstream in FY25 and FY26.” He noted that the company is investing in future growth while still reducing its debt. In the past quarter, the company reduced its debt by Rs 1,800 crore, bringing the current total to Rs 17,351 crore.

Morgan Stanley maintains an ‘Overweight’ rating on Samvardhana Motherson with a higher target price of Rs 176, indicating a potential upside of 16.4%. The brokerage highlights that earnings support is likely to come from its acquisitions, sharp non-auto growth, and improvement in the balance sheet.

3. Torrent Pharmaceuticals: 

This pharma stock surged for three consecutive sessions to touch its all-time high of Rs 2,795 per share on Monday after its net profit grew by 56.4% YoY to Rs 449 crore in Q4FY24 on the back of price hikes. Revenue increased by 11% YoY to Rs 2,776 crore, helped by improvements in the Indian, Germany, and Brazil markets. But net profit missed Trendlyne’s Forecaster estimates by 3%. The company’s board of directors approved raising Rs 5,000 crore by issuing equity shares through a qualified institutional placement (QIP). It features in a screener of stocks with increasing return on equity (RoE) over the last two years.

Growth in the Indian market (50% of total revenue) was driven by new launches in chronic therapies, an expanded field team, and increased sales from brands on the prescription side (Shelcal 500, Unienzyme and Tedibar) and over the counter segments. The Brazil market (16% of total revenue) witnessed growth on the back of price hikes, higher sales volume and new drug launches. Lastly, the German market (10% of total revenue) grew on account of higher tender wins and new product launches. 

Speaking after the results, the company’s CFO and Executive Director, Sudhir Menon, said, “We expect EBITDA margins to improve by 50-100 bps in FY25, on the back of higher traction in the branded generics segment and better operating leverage. We are also planning eight launches in the next year for the US market and are aiming to hit a revenue target of $250-300 million (approx. Rs 2,000-2,500 crore) in the next 3-4 years.” For context, the US market generated a revenue of Rs 1,078 crore in FY24, so this implies a two-fold increase in the next 3-4 years.

Post results, ICICI Direct retains its ‘Buy’ call on the stock with an upgraded target price of Rs 3,080 per share. This indicates a potential upside of 15.9%. The brokerage believes that the company’s ability to market drugs of acquired business brands (Elder, Unichem and Curatio) will drive growth. It expects the company’s revenue to grow at a CAGR of 11.3% over FY25-26.

4. Hindalco Industries:

This aluminium products manufacturer rose 6.1% in the past month and hit its all-time high of Rs 713.5 on Wednesday. Its net profit grew by 31.7% YoY to Rs 3,174 crore in Q4FY24, in line with estimates, while revenue increased marginally. The profit growth was due to decreased inventory costs and raw material expenses, as global aluminum prices in Q4 remained flat and copper prices fell 5.4% YoY. 

The company’s India aluminium volumes (downstream and upstream) rose 17% YoY and 4% YoY, respectively, on the back of higher beverage packaging shipments to the Americas. The copper segment reported an all-time high sales volume, rising 15% YoY. 

Analysts expect domestic demand for aluminium to double to 9 million tonnes (MT) in the next 10 years, on the back of the infrastructure, packaging, electric vehicle and renewable energy spaces. The management hopes to ride this growth, with plans to spend Rs 6,000 crore in capex in FY25. Most of the allocation will be towards aluminium downstream capacity and specialty alumina domain, focusing on value-added products.

In Q4FY24, Hindalco’s debt to EBITDA reduced to 1.2x from 1.5x. The management expects to maintain a low debt ratio despite the high capex. MD Satish Pai says, “All our strategic capex in India is mapped to the cash flow generation in the businesses, and are in line with our capital allocation policy.” 

Management highlights increased competition in specialty products such as container foils due to higher exports from China. However, this may be mitigated with the government sanctions on imports of low grade aluminium, copper, and nickel from December 2023.

In other news, the company’s promoter Birla Group Holdings acquired a 1.2% stake in the company and now holds an 11.4% stake. The company also appears in a screener for stocks where mutual funds have increased their shareholding over the past two months.

Axis Direct maintains a ‘Buy’ call on Hindalco Industries due to its expansion plans such as the Bay Minette, Copper Inner Grooved Tubes and Aluminium downstream projects. The brokerage is optimistic as these expansions will increase EBITDA per tonne after commissioning in FY27.

5. RITES:

This construction & engineering company declined by 6.9% over the past week and announced its results on May 29. The firm missed Trendlyne Forecaster estimates for Q4FY24 for revenue by 16.4% and net profit by 9.2%. The Q4FY24 numbers were disappointing – the company’ net profit declined by 9.2% YoY to Rs 126.1 crore, while its revenue declined by 5.4% YoY due to a fall in domestic leasing and export revenue. The stock shows up in a screener for stocks in the sell zone.

RITES is mainly into infra projects consultancy, turnkey construction, and export of railway vehicles. The company caters to a diverse range of clients across various sectors, including government agencies like Indian Railways, private companies, and international organizations. The company’s order book stands at Rs 5,690 crore as of Q4FY24, out of which a large part worth Rs 2,600 crore is from the consultancy vertical and Rs 2,050 crore worth of orders are from turnkey construction projects. 

Analysts predict that the company’s export segment will pick up by H2FY25. After a prolonged period without export activity, the company recently won two export orders amounting to Rs 1,200 crore. These orders were secured through agreements for the provision of 10 locomotives to CFM Mozambique and 200 locomotives to Bangladesh Railways. Analysts expect the company to grow its revenue at a CAGR of 23% over FY25-FY26E.

Rahul Mithal, Chairman and Managing Director, RITES said: ”From getting export orders of Rs 1,200+ crore after a gap of more than 4 years, and diversifying our Quality Assurance business portfolio, we are on the right track and we will capitalize aggressively on this momentum in the coming FY.” He also guided a capex target of Rs 100-140 crore for FY25 and expects to maintain at least 40% of the order book from the consultancy business.

Axis Direct has given a "Hold" rating on Rites with a price target of Rs 715. The brokerage values the company at 24x FY26 EPS to arrive at a TP of Rs 715/share, implying no upside from the CMP. The brokerage awaits for a better entry point as it notes that higher competitive intensity may impact margins.

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

 
Trendlyne Marketwatch
Trendlyne Marketwatch
31 May 2024
Market closes higher, Apollo Hospitals' Q4 net profit rises 75.6% YoY to Rs 253 crore
By Trendlyne Analysis

Nifty 50 closed at 22,530.70 (42.1, 0.2%), BSE Sensex closed at 73,961.31 (75.7, 0.1%) while the broader Nifty 500 closed at 21,103.30 (64.8, 0.3%). Of the 2,113 stocks traded today, 959 were gainers and 1,109 were losers.

Indian indices fell from their day highs but closed in the green. The Indian volatility index, Nifty VIX, rose 1.7% and closed at 24.6 points. Swan Energy closed sharply lower after its net profit declined by 57.2% YoY to Rs 26.6 crore in Q4FY24 due to higher raw material, inventory, and employee benefits expenses.

Nifty Smallcap 100 and Nifty Midcap 100 closed in the green, taking cues from the benchmark index. Nifty Realty and Nifty Infra trade higher than their Thursday close. According to Trendlyne’s sector dashboard, Commercial Services & Supplies emerged as the best-performing sector of the day, with a rise of 3.5%.

Asian indices closed in the green, with China’s FTSE China 50 and Japan’s  Nikkei 225 index closing in the red. European indices traded flat or lower amid mixed global cues. US index futures traded lower, indicating a negative start to the trading session. Brent crude oil futures traded flat after falling 1.7% on Thursday.

  • Relative strength index (RSI) indicates that stocks like Finolex Cables, Balkrishna Industries, Bharat Dynamics, and Rail Vikas Nigam are in the overbought zone.

  • Orient Electric appoints R S Negi as Chief Executive Officer and Managing Director of the company for five years, effective May 31.

  • Apollo Hospitals' Q4FY24 net profit misses Forecaster estimates by 33% despite growing 75.6% YoY to Rs 253 crore, driven by lower expenses. Its revenue rises 15% YoY to Rs 4,943.9 crore during the quarter. The company appears in a screener of stocks where mutual funds increased shareholding over the past two months.

  • Reports suggest that 75.2 lakh shares (1.2% equity) of One97 Communications (Paytm), worth approx. Rs 296.3 crore, change hands in a large deal.

  • Metal stocks like Jindal Stainless, Adani Enterprises, NMDC, and Hindustan Zinc are rising in trade. The broader sectoral index, Nifty Metal, is also trading in the green.

  • Waaree Renewable Technologies rises as it wins an engineering, procurement, and construction order for a solar power project of 26.4 MW DC capacity on a turnkey basis.

  • Kewal Kiran Clothing's net profit grows by 20.2% YoY to Rs 37.9 crore in Q4FY24, helped by a reduction in inventory and finance costs. Revenue increases by 10.2% YoY to Rs 228 crore. The company's board approves the acquisition of a 50% stake in Kraus Casuals for Rs 166.5 crore to venture into the women's denim and casual wear segment.

  • TV Narendran, MD and CEO of Tata Steel, highlights the company’s plans to invest Rs 16,000 crore in capex, with 75% allocated to projects in India. He adds that the company is focusing on expanding its Kalinganagar plant and decarbonising its operations in the UK.

  • Zomato shares drop over 5% as Macquarie reportedly retains an 'Underperform' rating on the stock with a lower target price of Rs 96 per share. The brokerage warns of a nearly 50% decline in share price in the next year due to rising competition in the quick commerce sector. It shows up in a screener of stocks where mutual funds decreased their shareholding last quarter.

  • Dr. Reddy's Laboratories invests Rs 650 crore in its arm, Aurigene Oncology. Aurigene Oncology will make a similar investment in its arm, Aurigene Pharmaceutical Services, to support its capex and working capital requirements.

  • Foreign institutional investors divest Rs 2,417.8 crore in the equity market over the past week, according to Trendlyne's FII dashboard. Index options witness the highest outflow of Rs 38,231.5 crore from foreign investors. Meanwhile, mutual funds are net buyers in the equity market, injecting Rs 7,760.9 crore during the same period.

  • Gunjan Shah, MD and CEO of Bata India, highlights the company’s focus on premiumisation, casualisation, and store expansion. He adds that the company targets 100-150 store openings each year, with 80% through the franchise route. Shah projects double-digit revenue growth in FY25.

  • Tube Investments of India's subsidiary, TI Clean Mobility, acquires a 23.7% stake in IPLTech Electric for Rs 185 crore. With this, the company's stake increases to 89.4% from 65.7%.

  • ICICI Direct upgrades Natco Pharma to 'Buy' with a higher target price of Rs 1,250 per share. This indicates a potential upside of 24.3%. The brokerage believes that the company's strategy of niche products, geographical expansion, and acquisitions will drive growth. It expects the company's revenue to grow at a CAGR of 22.1% over FY25-26.

  • Sunteck Realty's board approves raising funds worth Rs 2,250 crore. The company plans to raise Rs 1,500 crore through private placements and Rs 750 crore via equity shares or other equity convertible securities.

  • Rajiv Kaul, CEO of CMS Info Systems, projects revenue growth of Rs 2,500-2,700 crore in FY25, and ROCE in the range of 25-27%. He says, AIoT (Artificial Intelligence of Things) offers growth opportunities, and anticipates the revenue contribution to increase to 7-8% in the next three years.

  • Muthoot Finance rises sharply as its net profit surges 17% YoY to Rs 1,139.1 crore in Q4FY24. Revenue grows by 26.7% YoY to Rs 4179.4 crore, driven by an improvement in the gold loan segment. The company shows up in a screener of stocks where mutual funds increased their shareholding last quarter.

  • Welspun Corp's net profit rises 13.8% YoY to Rs 268.5 crore in Q4FY24. Revenue rises 10% YoY to Rs 4,543.7 crore, helped by growth in the steel products segment. The board approves the expansion of its DI pipes capacity by 100 KMTPA in Anjar, with an investment of Rs 300 crore.

  • Swan Energy plunges to its 5% lower circuit as its net profit declines by 57.2% YoY to Rs 26.6 crore in Q4FY24 due to higher raw material, inventory, and employee benefits expenses. However, revenue grows 50.1% YoY to Rs 1,407.1 crore helped by improvements in the construction and distribution & development segments. It shows up in a screener of stocks with high interest payments compared to earnings.

  • Mahindra & Mahindra is rising as BofA Securities upgrades its rating to ‘Buy’, and raises the target price to Rs 3,050. The brokerage believes the company has multiple growth catalysts, which will playout in the next 12-18 months. It anticipates market share gains in the SUV segment and a potential turnaround in the tractor business.

  • Suzlon Energy secures an order from Oyster Green Hybrid One to develop an 81.9 MW wind energy project. Suzlon will install 26 wind turbine generators with a hybrid lattice tubular tower and a rated capacity of 3.2 MW each at the client’s site in Agar, Madhya Pradesh.

  • Krishna Institute of Medical Sciences announces expansion by setting up a 350 bed specialty hospital in Bengaluru.

  • Aarti Industries appoints Suyog Kotecha as the new Chief Executive Officer (CEO) and Executive Director of the company, effective June 17.

  • Bharat Dynamics is rising as its net profit surges by 89% YoY to Rs 288.8 crore in Q4FY24, helped by sales of inventory. Revenue increases by 12.8% YoY to Rs 942.6 crore. It features in a screener of stocks with rising operating profit with expanding operating margins (YoY).

Riding High:

Largecap and midcap gainers today include Adani Total Gas Ltd. (1,039.30, 8.8%), PB Fintech Ltd. (1,294.40, 8.8%) and Adani Power Ltd. (755.80, 8.2%).

Downers:

Largecap and midcap losers today include Ipca Laboratories Ltd. (1,152.15, -7.8%), Page Industries Ltd. (35,954.70, -5.3%) and Linde India Ltd. (8,709.55, -4.8%).

Volume Shockers

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

Top high volume gainers on BSE included Jindal Stainless Ltd. (793.50, 12.1%), Bikaji Foods International Ltd. (593.85, 9.3%) and Adani Total Gas Ltd. (1,039.30, 8.8%).

Top high volume losers on BSE were Welspun Corp Ltd. (548.95, -8.7%), Ipca Laboratories Ltd. (1,152.15, -7.8%) and One97 Communications Ltd. (360.75, -4.4%).

Berger Paints (India) Ltd. (460, -3.7%) was trading at 25.9 times of weekly average. Torrent Power Ltd. (1,501.80, 4.3%) and Praj Industries Ltd. (522.05, 4.2%) were trading with volumes 18.2 and 18.1 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

16 stocks hit their 52-week highs, while 8 stocks were underachievers and hit their 52-week lows.

Stocks touching their year highs included - Adani Power Ltd. (755.80, 8.2%), Blue Star Ltd. (1576.45, 5.1%) and Coromandel International Ltd. (1,304, 0.3%).

Stocks making new 52-week lows included - Atul Ltd. (5,635, -0.8%) and Berger Paints (India) Ltd. (460, -3.7%).

17 stocks climbed above their 200 day SMA including Five-Star Business Finance Ltd. (757.05, 6.5%) and Adani Wilmar Ltd. (355.75, 3.3%). 24 stocks slipped below their 200 SMA including Page Industries Ltd. (35,954.70, -5.3%) and Persistent Systems Ltd. (3,410.50, -3.0%).

 
Trendlyne Marketwatch
Trendlyne Marketwatch
30 May 2024
Market closes lower, Marksans Pharma's net profit falls 4.4% YoY to Rs 78.3 crore in Q4FY24
By Trendlyne Analysis

Nifty 50 closed at 22,488.65 (-216.1, -1.0%), BSE Sensex closed at 73,885.60 (-617.3, -0.8%) while the broader Nifty 500 closed at 21,038.55 (-217.8, -1.0%). Market breadth is highly negative. Of the 2,116 stocks traded today, 495 were on the uptrend, and 1,582 went down.

Indian indices extended the losses from the afternoon session and closed in the red. The volatility index, Nifty VIX, rose by 0.1% and closed at 24.2 points. Alembic Pharmaceuticals received US FDA approval for its Sacubitril and Valsartan tablets, used for cardiovascular disease. The tablets have an estimated market size of $ 5.3 billion in the US. 

Nifty Midcap 100 closed and Nifty Smallcap 100 closed lower following the benchmark index. Nifty Media and Nifty Bank closed higher than Wednesday’s closing levels. According to Trendlyne’s sector dashboard, telecommunication equipment emerged as the top-performing sector of the day, with a rise of over 1.4%.

Most European indices trade in the green, except for Germany’s DAX and Switzerland’s SMI index trading lower. US indices futures trade lower, indicating a negative start. Fitch downgrades China's outlook to negative due to a steady rise in debt. The unemployment rate in the Eurozone for April increases by 6.4% YoY against estimates of 6.5% growth.

  • Money flow index (MFI) indicates that stocks like Sumitomo Chemical India, Jupiter Wagons, 3M India and Finolex Cables are in the overbought zone.

  • Metal stocks like Hindustan Zinc, Hindustan Copper, Tata Steel and APL Apollo Tubes fall more than 3% in trade. All constituents of the broader BSE Metal index are also trading in the red, causing it to plunge almost 3%.

  • Marksans Pharma plunges more than 10% as its net profit declines by 4.4% YoY to Rs 78.3 crore in Q4FY24 due to higher employee benefits and finance costs. However, revenue grows by 16% YoY to Rs 576.5 crore, helped by an improvement in the US & North American and UK & European markets. It appears in a screener of stocks with declining return on equity (RoE) over the past two years.

  • The Reserve Bank of India projects India’s GDP growth at 7% for FY25. The central bank highlights that the outlook for the Indian economy remains bright, driven by robust growth in the financial and corporate sectors.

  • KFIN Technologies plunges as General Atlantic Singapore reportedly sells up to 6.8% stake at an estimated price of Rs 712.5 per share, worth Rs 733 crore.

  • Lemon Tree Hotels is rising as its net profit surges by 52.3% YoY to Rs 67 crore in Q4FY24, helped by a deferred tax credit of Rs 13.7 crore. Revenue grows by 30% YoY to Rs 331.2 crore, on account of an improvement in occupancy rate and revenue per available room (RevPAR). It appears in a screener of stocks with rising net cash flow and cash from operating activities.

  • Avantel surges as it wins an order worth Rs 109.8 crore from Ministry of Defence for the supply of SATCOM equipment.

  • Reports suggest that 56 lakh shares (5% equity) of RR Kabel, worth approx. over Rs 950 crore, change hands in a large trade. TPG Asia is the likely seller in this transaction.

  • Alembic Pharmaceuticals receives US FDA approval for its Sacubitril and Valsartan tablets, used to reduce the risk of cardiovascular death and hospitalization for heart failure in adult patients with chronic heart failure. The tablets have an estimated market size of $ 5.3 billion in the US.

  • Emami surges to its 52-week high of Rs 619 per share as its net profit rises 3% YoY to Rs 148.9 crore in Q4FY24. Revenue grows 6.6% YoY to Rs 891 crore during the quarter. The company appears in a screener of stocks with new 52-week highs today.

  • KR Choksey downgrades Balkrishna Industries to 'Reduce' from 'Hold' with a higher target price of Rs 2,998 per share. This indicates a potential upside of 3.5%. The brokerage notes the company's top-line growth and efficient cost management strategies. However, it remains cautious on the stock due to geopolitical uncertainties and a surge in the stock price. It expects the company's revenue to grow at a CAGR of 15% over FY25-26.

  • Parmod Sagar, MD and CEO of RHI Magnesita, expects the company’s volumes to grow by more than 8% YoY, and margins of around 14-15% in FY25. He highlights that the firm’s exports growth was down to 10% in FY24, and expects it to improve by 20-23% in the next 2-3 years.

  • ISGEC Heavy Engineerings' net profit declines by 17.2% YoY to Rs 71.3 crore in Q4FY24. Revenue falls by 8.6% YoY to Rs 1,872 crore, impacted by the manufacturing and construction segments. The company features in a screener of stocks with falling quarterly revenue and net profit (YoY).

  • GMR Airports Infrastructure's net loss narrows by 72.6% YoY to Rs 121 crore in Q4FY24, driven by lower expenses. Its revenue rises 29.1% YoY to Rs 2,446.8 crore during the quarter. The company appears in a screener of stocks where mutual funds increased shareholding over the past two months.

  • Aditya Birla Capital invests Rs 300 crore on a rights basis in the equity shares of its arm, Aditya Birla Housing Finance.

  • Awfis Space Solutions’ shares debut on the bourses at a 13.6% premium to the issue price of Rs 383. The Rs 598.9 crore IPO has received bids for 108.6 times the total shares on offer.

  • Rahul Mithal, CMD of Rites, highlights the company’s target to increase revenue contribution from exports to 20-25% by FY26. He states that Rites is bidding for tenders for rolling stock supplies, consultancy operations, and quality assurance businesses across Southeast Asia, Africa, West Asia, and Latin America.

  • Ahluwalia Contracts' net profit surges by 176.9% YoY to Rs 199.8 crore in Q4FY24, helped by an exceptional gain of Rs 195 crore. Revenue grows by 34.9% YoY to Rs 1,176 crore owing to an improvement in the contract work segment. It features in a screener of stocks with improving return on equity (RoE) over the past two years.

  • Hero MotoCorp's associate company, Hero FinCorp, approves an initial public offering comprising a fresh issue of equity shares aggregating up to Rs 4,000 crore and an offer for sale by certain existing and eligible shareholders.

  • Edelweiss Financial Services plunges more than 10% as the Reserve Bank of India (RBI) orders the company to cease operations of its subsidiaries, ECL Finance and Edelweiss Asset Reconstruction. The RBI instructs ECL Finance to stop any structured transactions related to its wholesale exposures, while Edelweiss Asset Reconstruction is ordered to stop acquiring financial assets.

  • Jefferies maintains its ‘Underperform’ rating on Alkem Laboratories, and lowers the target price to Rs 4,200. The brokerage highlights that the company's Q4 results missed estimates, with sales declining across all major regions. It notes Alkem’s plans for M&As in India, compared to the earlier focus on organic growth.

  • SJVN falls sharply as its revenue misses Forecaster estimates by 12% after falling 1.6% YoY to Rs 573.2 crore in Q4FY24. However, net profit surges by 3.6x YoY to Rs 61.1 crore, helped by an exceptional gain of Rs 103.8 crore during the quarter. It shows up in a screener of stocks underperforming their industries over the last quarter.

  • IRB Infrastructure Developers falls as reports suggest promoters are likely to sell a 4% stake in the company to raise Rs 1,512 crore.

  • Welspun Corp's Saudi Arabia-based arm East Pipes signs a contract worth Rs 316 crore with Alrawaf Contracting for the coating and supply of steel pipes.

  • Tata Steel is falling as its net profit plunges 64.1% YoY to Rs 611.5 crore in Q4FY24 due to higher employee benefits and finance costs. Revenue declines by 6.8% YoY to Rs 58,863.2 crore, caused by a decrease in the Indian, European, and Asian markets. The company's board also approves plans to invest up to Rs 17,407.5 crore in its subsidiary, T Steel Holdings Pte, to repay the external debt at offshore entities and to support restructuring costs at Tata Steel UK.

  • Nifty 50 was trading at 22,670.30 (-34.4, -0.2%), BSE Sensex was trading at 74,365.88 (-137.0, -0.2%) while the broader Nifty 500 was trading at 21,241.30 (-15, -0.1%).

  • Market breadth is in the green. Of the 1,875 stocks traded today, 1,018 were on the uptrend, and 794 went down.

Riding High:

Largecap and midcap gainers today include Linde India Ltd. (9,144.85, 8.7%), One97 Communications Ltd. (377.40, 5.0%) and Page Industries Ltd. (37,964.75, 4.1%).

Downers:

Largecap and midcap losers today include Hindustan Zinc Ltd. (666.50, -6.4%), Cummins India Ltd. (3,596.80, -6.2%) and Alkem Laboratories Ltd. (4,946.80, -6%).

Volume Shockers

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

Top high volume gainers on BSE included Emami Ltd. (611.85, 16.8%), RHI Magnesita India Ltd. (736.35, 10.6%) and Linde India Ltd. (9,144.85, 8.7%).

Top high volume losers on BSE were IRB Infrastructure Developers Ltd. (65.20, -10.3%), Cummins India Ltd. (3,596.80, -6.2%) and Alkem Laboratories Ltd. (4,946.80, -6%).

KNR Constructions Ltd. (302.60, 8.1%) was trading at 18.7 times of weekly average. Bata India Ltd. (1,372.20, -0.1%) and Poly Medicure Ltd. (1,778.35, -3.0%) were trading with volumes 8.8 and 7.4 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

14 stocks hit their 52 week highs, while 6 stocks tanked below their 52 week lows.

Stocks touching their year highs included - Coromandel International Ltd. (1,300.20, 1.0%), Cummins India Ltd. (3,596.80, -6.2%) and EID Parry (India) Ltd. (676.75, -1.5%).

Stocks making new 52 weeks lows included - Atul Ltd. (5,711, -2.7%) and Berger Paints (India) Ltd. (477.55, -3.1%).

9 stocks climbed above their 200 day SMA including RHI Magnesita India Ltd. (736.35, 10.6%) and Page Industries Ltd. (37,964.75, 4.1%). 25 stocks slipped below their 200 SMA including Max Financial Services Ltd. (926.70, -4.6%) and APL Apollo Tubes Ltd. (1,533.25, -4.1%).

 
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The Baseline
30 May 2024
China is trying to win the global EV race | Screener: Auto stocks outperforming their sector
By Tejas MD

Recently, Donald Trump made headlines in the media when he warned that there would be a ‘bloodbath’ if he lost the US elections. The bloodbath Trump was referring to? The threat American car companies face from Chinese auto players. Trump promised a 100% tariff on auto imports if he was elected.

Foreign companies are convenient villains for politicians running for election. US President Biden and Donald Trump have been trying to outdo each other in sounding tough on China in particular. So Biden in response, imposed new tariffs on Chinese products on May 14, including a 100% tariff on Chinese electric vehicles (EVs).

Biden said, “The competition hasn’t been fair. For years, the Chinese government has poured state money into Chinese companies. This is not competition, it's cheating”. 

It is not just the US that is worried about cheaper, technologically advanced Chinese EV cars. In Europe, almost a fifth of the EVs sold last year were made in China, a share expected to reach 25% in 2024. The Chinese presence is being felt in India as well. Two major Chinese EV players, BYD and MG Motors are among the fastest-growing EV manufacturers in India. 

Will high import taxes by the US shift China’s EV plans to India and heat up the competition in this segment? Let’s dive in. 

In this week’s Analyticks,

  • Chinese cars come for everyone: Can China's EV makers disrupt the global auto industry?
  • Screener: Auto stocks outperforming the sector with the highest revenue and net profit growth in Q4FY24

US decides ‘prevention is better than cure’, limits Chinese EVs before they grow 

On May 14, US President Joe Biden imposed a big tariff hike on Chinese products, expected to affect around $18 billion in yearly imports from China. The highlight was tariffs on Chinese EVs quadrupling to 100% to protect domestic auto companies. 

US raises tariffs on Chinese EVs to 100% 

When it comes to pricing, it's very hard to beat Chinese EV makers. China's EV edge is not just about low wages - it dominates the supply chain for a key, critical technology, lithium-ion batteries. China holds 85-95% of production capacity for major battery components. And subsidies by the Chinese government significantly helps bring down costs.

These advantages have helped China corner the market: it dominates the global electric vehicle industry, accounting for 60% of EVs sold worldwide

One example of a value-for-money EV is BYD’s sub $10,000 Seagull electric car. The car undercuts the average price of an American EV by more than $50,000. Even with tariffs, Seagull will be the cheapest EV in the US. 

India is no different when it comes to the threat of Chinese EVs. India already has two Chinese EV makers selling here: BYD, which imports from China, and MG Motors, which manufactures with a local partnership with the JSW Group. With the US imposing high tariffs, analysts are worried about China trying to storm the Indian market.

The Indian government had previously reduced the import duty of EVs to 15% from 100%, and required that companies make a minimum investment of $500 million to start local manufacturing. Chinese companies can avoid tariffs completely if they manufacture locally via joint ventures.

One example of this is Chinese EV startup Leapmotor partnering with the third-largest carmaker Stellantis, which owns several brands including Citroën, Fiat and Jeep. Stellantis is considering manufacturing electric vehicles from its Chinese joint venture partner Leapmotor at its Tamil Nadu plant. 

The company is planning a small EV, T03, and an SUV, C10. If launched, the price of T03 would be below Rs 6 lakh while that of SUV C10 would be below Rs 15 lakh. 

Chinese players offer EVs across price segments

At less than Rs 6 lakh, T03 can easily undercut MG Motor’s popular MG Comet, which is priced at Rs 7 lakh (ex-showroom New Delhi). And the SUV C10 will give tough competition to top-selling EV models from Tata Motors and Mahindra & Mahindra.

Currently, Tata Motors holds over 70% of the EV market, followed by MG Motors, Mahindra & Mahindra, Citroen and BYD. Analysts expect Chinese players to give Indian EV makers like Tata Motors a run for their money.

One factor that has been helping EV sales in India is the FAME subsidies, which reduces the prices for an EV buyer. But this can change with the new budget allocation in place. 

India cuts EV subsidies, while the Chinese government pumps money into EV manufacturers

In the interim budget 2024, the Centre cut the allocation for its FAME scheme by 44% to Rs 2,671 crore. FAME 2, which ended on March 31 was extended through a new scheme, the Electric Mobility Promotion Scheme (EMPS), to promote the sale of electric two-wheelers and three-wheelers in the country. Notably, four-wheelers were left out of the list. Car makers will have to rely on the Auto PLI scheme (outlay of Rs 25,938 crore) to reduce their costs. 

In India, the Income Tax department allows the buyer to claim tax savings of up to Rs 1.5 lakh ($1,800) on interest paid on a loan made to purchase an electric car. This is small potatoes compared to the US, which gives consumers a $7,500 (Rs 6.2 lakh) clean-vehicle tax credit while China offers $4,180. 

China is also doubling down on EV subsidies. China spent roughly $173 billion in subsidies to support the new energy-vehicle sector between 2009 and 2022.  

There have also been instances of the Chinese government pumping money into struggling companies—in one case, giving the equivalent of $27.5 million to a company that had sold fewer than 2,000 cars in the first quarter of 2024.

With such generous government subsidies, Chinese automakers may even be competitive with the tariffs in place. Research firm Rhodium Group says that Chinese EVs can extract higher profits in Europe, as price wars back home push their margins to the floor. The Seal U model makes BYD a $15,300 profit in the EU, but a mere $1,400 profit in China. So the expected EU tariff (15% to 30%) isn’t going to deter automakers from shipping to the EU.

Given all these moving parts, the Indian government may have to rethink its strategy regarding EV subsidies and tariffs. This will become especially important once JVs from Chinese companies pick up. 

While the option to form JVs with Chinese companies is also available to Tata Motors and M&M, this route may not go down too well with Indian consumers as sentiment towards Chinese companies has soured. We will have to wait and see if the Centre will put the brakes on Chinese EVs, and how the competition will pan out. 

Screener:Auto stocks outperforming the sector with the highest revenue and net profit growth in Q4FY24

Auto parts & equipment stocks have the highest revenue and net profit YoY growth in Q4

As we enter the final leg of the Q4 results season, we take a look at the automobile & auto components stocks with the highest YoY growth in revenue and net profit. This screener shows automobiles & auto components stocks that have outperformed the sector over the past month, and had the highest revenue and net profit YoY growth in Q4FY24.

The screener is dominated by stocks from the auto parts & equipment and commercial vehicles industries. Major stocks that appear in the screener are Jupiter Wagons, JBM Auto, UNO Minda, Samvardhana Motherson International, TVS Motor, Endurance Technologies, TVS Holdings and Gabriel India. 

Jupiter Wagons has the highest YoY growth in revenue and net profit at 56.7% and 168.2%, respectively in Q4FY24. Revenue rose on the back of the commercial vehicles company’s order wins worth Rs 1,530 crore in the railways, defence and auto equipment manufacturing segments. The sharp increase in net profit was mainly due to a 95.7% YoY reduction in deferred tax. 

TVS Motor’s Q4FY24 revenue rose by 25% YoY to Rs 9,998.9 crore, while its net profit grew by 15.1% YoY to Rs 387 crore. Its revenue increased on the back of a jump in sales volumes and the introduction of new products (iQube e-scooter in India and Ronin motorcycle in Colombia) to its portfolio. The 2/3-wheeler company’s net profit rose due to the company’s price hikes during the quarter, and as raw material costs fell. 

You can find more screeners here.

 
Trendlyne Marketwatch
Trendlyne Marketwatch
29 May 2024
Market closes lower, Alkem Laboratories' Q4FY24 net profit rises 3x YoY to Rs 293 crore
By Trendlyne Analysis

Nifty 50 closed at 22,704.70 (-183.5, -0.8%), BSE Sensex closed at 74,502.90 (-667.6, -0.9%) while the broader Nifty 500 closed at 21,256.30 (-131.1, -0.6%). Market breadth is in the red. Of the 2,118 stocks traded today, 892 were gainers and 1,176 were losers.

Indian indices extended the losses from the afternoon session and closed in the red. The volatility index, Nifty VIX, dropped by 0.1% and closed at 24.2 points. Amara Raja Energy & Mobility's net profit grew 61.3% YoY to Rs 229.8 crore in Q4FY24. Revenue increased by 19.7% YoY to Rs 2,941.2 crore.

Nifty Smallcap 100 closed flat, while Nifty Midcap 100 closed lower following the benchmark index. Nifty Metal and Nifty Pharma closed higher than Tuesday’s closing level. According to Trendlyne’s sector dashboard, retailing emerged as the top-performing sector of the day, with a rise of over 0.9%. 

Most European indices trade in the red. US indices futures trade lower, indicating a negative start. Bank of Japan’s Board Member, Seiji Adachi hinted at increasing interest rates if the yen continues to fall against the US dollar.

  • Relative strength index (RSI) indicates that stocks like Finolex Cables, Balkrishna Industries, Schaeffler India, and Rail Vikas Nigam are in the overbought zone.

  • Alkem Laboratories' Q4FY24 net profit rises 3x YoY to Rs 293 crore. Profit was impacted due to an impairment loss in Q4FY23. Revenue increases by 1.1% YoY to Rs 2,935.8 crore during the quarter. The company appears in a screener of stocks near their 52-week highs.

  • Gujarat Narmada Valley Fertilizers & Chemicals' net profit declines by 61.3% YoY to Rs 130 crore in Q4FY24. Revenue falls by 7.4% YoY to Rs 2,218 crore, impacted by the chemicals segment. The company features in a screener of stocks with falling quarterly revenue and net profit (YoY).

  • Amara Raja Energy & Mobility's net profit grows by 61.3% YoY to Rs 229.8 crore in Q4FY24. Revenue increases by 19.7% YoY to Rs 2,941.2 crore, owing to an improvement in the lead acid batteries and allied products segment. It shows up in a screener of stocks with rising net cash flow and cash from operating activities.

  • S&P Global Ratings revises its outlook for the Indian economy to 'positive' from 'stable' and affirms its 'BBB-' rating. The firm cites strong growth and improved government expenditure despite a high fiscal deficit.

  • Aditya Birla Fashion and Retail's net loss expands by 22.8% YoY to Rs 229 crore in Q4FY24. However, its revenue rises 18.3% YoY to Rs 3,406 crore due to improvements in the ethnic and others segments. The company appears in a screener of stocks near their 52-week highs.

  • TCPL Packaging rises sharply as its Q4FY24 net profit surges 20.2% YoY to Rs 29 crore due to lower inventory costs. Revenue grows by 2.6% YoY to Rs 393.4 crore during the quarter. It shows up in a screener of stocks where mutual funds have increased their shareholding in the past quarter.

  • MTAR Technologies falls sharply as its net profit plunges 84.3% YoY to Rs 4.9 crore in Q4FY24. Revenue declines by 28.7% YoY to Rs 143.4 crore. The company shows up in a screener of stocks with high promoter pledges.

  • Jayanta Basu, MD of ITD Cementation, projects revenue growth of 20% in FY25, with margins around 10-11%. He highlights the company’s target to achieve an order inflow in the range of Rs 9,000-10,000 crore. Basu also expects the revenue contribution from its overseas business to improve to 30% in the next 2-3 years.

  • Cello World rises sharply as its board of directors approves issuing 86.5 lakh shares with a face value of Rs 5 per share through a qualified institutional placement (QIP).

  • BHEL enters into a technology transfer agreement with the Bhabha Atomic Research Centre (BARC) to manufacture a 50 kW alkaline electrolyser system designed for hydrogen production.

  • Suzlon Energy rises sharply as it bags an order to supply 175 wind turbines with a total capacity of 551.3 MW for Aditya Birla Group's sites in Rajasthan and Gujarat.

  • Rajesh Jain, CFO of RR Kabel, expects volume growth of over 20% YoY in its wires and cables business in FY25. He also projects margins of 8-8.2% for the year and anticipates a revenue contribution of Rs 1,000 crore from the FMEG segment.

  • Rites' net profit falls 1.5% YoY to Rs 136.6 crore in Q4FY24. Revenue drops 6.3% YoY to Rs 643 crore due to a decline in export sales and the domestic construction project segment. The company appears in a screener of stocks with no debt.

  • IRCTC falls sharply as its net profit misses Forecaster estimates by 3.5% despite growing 1.9% YoY to Rs 285.2 crore in Q4FY24, helped by a decrease in tourism expenses. Revenue increases by 18.2% YoY to Rs 1,187.4 crore due to improvements in the catering, Rail Neer, internet ticketing, and tourism segments. It shows up in a screener of stocks with improving net cash flow for the past two years.

  • Prestige Estates Projects falls as its net profit declines by 70.1% YoY to Rs 140 crore in Q4FY24 due to higher inventory and land costs. Revenue falls by 17.8%% YoY to Rs 2,164 crore during the quarter. The company features in a screener of stocks with falling quarterly revenue and net profit (YoY).

  • One97 Communications (Paytm) hits the upper circuit following reports that CEO Vijay Shekhar Sharma was in talks with Gautam Adani to sell his stake in the company. However, Paytm clarified that the news is 'speculative' and it is not engaged in any such discussions.

  • IDBI Capital downgrades Century Plyboards to 'Hold' from 'Buy' with a lower target price of Rs 606 per share. This indicates a potential downside of 7.8%. The brokerage believes that the company will sustain subdued demand till Q2FY25. It expects the company's revenue to grow at a CAGR of 9% over FY25-26.

  • Man Industries bags multiple domestic and international orders worth Rs 490 crore to supply pipes in the next 6-8 months. This takes the company's total order book to Rs 2,600 crore.

  • Inox Wind Energy, promoter of Inox Wind, sells 5.5 crore shares (16.9% stake), amounting to Rs 828.2 crore, in a bulk deal on Tuesday. Meanwhile, Morgan Stanley Asia Singapore Pte, Okoworld Okovision, Goldman Sachs (Singapore) Pte, and BNP Paribas Arbitrage pick up stakes in the company.

  • Jefferies expects wholesales growth of 10-12% YoY for TVS Motor and Bajaj Auto, and 6-8% YoY for Eicher Motor and Hero MotoCorp. The brokerage has a positive outlook on the Indian auto space, and prefers the two-wheelers segment over four-wheelers.

  • Timken Singapore Pte, promoter of Timken India, sells 50 lakh shares (6.6% stake), amounting to Rs 1,956.7 crore, in a block deal on Tuesday. Timken now holds a 51.1% stake in the company. Meanwhile, The Government of Singapore, Nippon India Mutual Fund, and the Monetary Authority of Singapore pick up 3.8%, 0.5%, and 0.6% stakes, respectively.

  • Brigade Enterprises rises sharply to its all-time high of Rs 1,331.5 per share as its net profit surges 197.6% YoY to Rs 206.1 crore in Q4FY24. Revenue grows by 102.1% YoY to Rs 1,762.6 crore, owing to improvements in the real estate, leasing, and hospitality segments. It appears in a screener of stocks outperforming their industries in the last quarter.

  • Hindware Home Innovation falls sharply as its net profit plunges 88% YoY to Rs 2.1 crore in Q4FY24 due to higher raw materials, employee benefits, finance, and power & fuel expenses. However, revenue rises marginally by 1% YoY to Rs 782.9 crore, helped by an improvement in the building products segment. The company's board of directors appoints Naveen Malik as the Chief Executive Officer, effective from Tuesday.

  • NBCC (India) rises sharply as its net profit grows by 24.5% YoY to Rs 141.5 crore in Q4FY24, helped by lower employee benefits expenses. Revenue increases by 42.2% YoY to Rs 4,075.9 crore, led by improvements in the project management consultancy (PMC) and engineering, procurement & construction (EPC) segments. It features in a screener of stocks with the highest recovery from their 52-week lows.

  • Nifty 50 was trading at 22,779.35 (-108.8, -0.5%), BSE Sensex was trading at 74,826.94 (-343.5, -0.5%) while the broader Nifty 500 was trading at 21,271.35 (-116, -0.5%).

  • Market breadth is highly negative. Of the 1,864 stocks traded today, 583 were on the uptrend, and 1,225 went down.

Riding High:

Largecap and midcap gainers today include UNO Minda Ltd. (866.05, 5.3%), One97 Communications Ltd. (359.45, 5.0%) and Samvardhana Motherson International Ltd. (147.70, 4.0%).

Downers:

Largecap and midcap losers today include ICICI Prudential Life Insurance Company Ltd. (556.20, -4.5%), Bayer Cropscience Ltd. (4,996.15, -4.4%) and InterGlobe Aviation Ltd. (4,027.55, -4.0%).

Volume Rockets

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

Top high volume gainers on BSE included Campus Activewear Ltd. (296.10, 18.3%), Grindwell Norton Ltd. (2,590.55, 8.3%) and EID Parry (India) Ltd. (686.85, 8.3%).

Top high volume losers on BSE were PNB Housing Finance Ltd. (735.75, -6.6%), Ujjivan Small Finance Bank Ltd. (50.45, -4.9%) and ICICI Prudential Life Insurance Company Ltd. (556.20, -4.5%).

Shoppers Stop Ltd. (732, -1.7%) was trading at 12.2 times of weekly average. Ipca Laboratories Ltd. (1,294, -2.0%) and Medplus Health Services Ltd. (689.60, -1.9%) were trading with volumes 8.3 and 4.6 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

17 stocks took off, crossing 52 week highs, while 2 stocks hit their 52 week lows.

Stocks touching their year highs included - Amara Raja Energy & Mobility Ltd. (1,213.15, -2.8%), Divi's Laboratories Ltd. (4,448, 1.3%) and EID Parry (India) Ltd. (686.85, 8.3%).

Stocks making new 52 weeks lows included - KRBL Ltd. (272.90, -0.7%) and Anupam Rasayan India Ltd. (761.35, 0.0%).

11 stocks climbed above their 200 day SMA including Campus Activewear Ltd. (296.10, 18.3%) and Garware Technical Fibres Ltd. (3,625.15, 3.6%). 14 stocks slipped below their 200 SMA including Hatsun Agro Products Ltd. (1,023.50, -8.6%) and PNB Housing Finance Ltd. (735.75, -6.6%).

 
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The Baseline
29 May 2024
Chart of the Week: Companies that outperformed their industry this year in ROCE and ROE
By Satyam Kumar

Investors often are on the lookout for companies with a high return on capital employed (ROCE), as this indicates how efficiently the company is able to generate profits from the money it spends. 

While ROCE tells us how effectively a company utilises its debt and equity funds, the return on equity (ROE) metric tells us how effectively a company creates value for its shareholders. By focusing on companies with both high ROCE and ROE, investors can identify firms that are good at generating profits and in creating substantial value for shareholders.

In this edition of Chart of the Week, we take a look at companies that have outperformed their industry peers in ROCE and ROE in FY24. We have selected the top eight stocks from a screener of Nifty 500 companies with the highest ROCE.

FMCG companies have the highest return ratios among Nifty500 stocks

Colgate-Palmolive (India), a personal products company, outperformed its industry ROCE of 31.3% by delivering an ROCE of 92.3% for FY24. The company posted an ROE of 70.6%, higher than the industry average of 28.4%. Colgate aims to build value for its shareholders by focusing on premiumisation as the growth strategy.

Similarly, packaged foods company Nestle India exceeded its industry ROCE of 63.6% by delivering an ROCE of 82.7% for FY24. The company posted an ROE of 117.7%, higher than the industry average of 78.3% driven by growth in its instant noodles and chocolate products. To maintain its impressive returns, Nestle India plans to launch its high-margin premium coffee brand Nespresso by the end of 2024. The company has also formed a joint venture with Dr. Reddy’s to bring nutraceutical products to Indian consumers.

Finance companies gain from rising investor interest in the Indian economy

Capital markets company ICICI Securities outperformed its industry ROCE of 46.1% by delivering an ROCE of 70.4% for FY24. The company also posted an ROE of 43.3%, higher than the industry average of 29.9%. Buoyed by the rising investor interest in the Indian markets, the company witnessed growth in its broking business and investment banking arm.

Public infrastructure finance company REC outperformed its industry ROCE of 41.4% by delivering an ROCE of 68.6% for FY24. However, the company posted a lower ROE of 20.4%, as its debt capital is eight times more compared to its shareholder's capital as of March 2024. The company in FY24 reported its highest-ever loan sanctions at over Rs 3.6 lakh crore, up 33.7% YoY. Loan disbursements in the previous fiscal also rose 66.7% YoY, with a significant portion allocated to the renewable energy sector at Rs 1.4 lakh crore, up 539% YoY.

Part of the Murugappa Group, Cholamandalam Financial Holdings outperformed its industry ROCE of 24.1% by delivering an ROCE of 50.3% for FY24. The company posted an ROE of 17.3%, higher than the industry average of 13.6%.

Metals & mining companies reduce their debt and plan to fund their capex through internal accruals

Despite belonging to a capital-intensive industry, mining company Lloyds Metals & Energy, outperformed its industry ROCE of 38.9% by delivering an ROCE of 58.7% for FY24. The company also posted an ROE of 44.2%, higher than the industry ROE of 26.3%. The miner’s share price has posted gains of 110% in the past year. The company incurred a capex of Rs 1,690 crore in FY24, primarily funded through internal accruals. In a bid to further boost its operational efficiency, Lloyds is constructing an 85 km slurry pipeline to reduce its freight costs.

Coming to an iron and steel products company, Jai Balaji Industries outperformed its industry ROCE of 14.2% by delivering an ROCE of 55.9% for FY24. The company posted an ROE of 58.5%, significantly higher than the industry ROE of 12.1%. Jai Balaji created more value for equity holders by significantly reducing its debt from over Rs 4,000 crore as of March 2022 to Rs 1,502 crore in March 2024. In addition, total shareholders’ funds have tripled compared to a year ago to Rs 1,504 crore in FY24.

Tata Consultancy Services (TCS), an IT consulting and software company, outperformed its industry in terms of ROCE despite the headwinds in the IT sector. For FY24, TCS achieved a ROCE of 63.5%, higher than the industry average of 42.9%, driven by 32 bps rise in operating profit margin after falling for two consecutive years. Their banking and financial services segment which contributes most (37.7%) to their revenue posted a growth of 5.6% YoY to Rs 90,928 crore. The company posted a ROE of 50.7%, surpassing the industry average of 34.4%. The IT firm has been consistently improving the value it generates for its shareholders with ROE CAGR of 10.6% in the past three years.

 
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The Baseline
28 May 2024
5 stocks to buy from analysts this week - May 28, 2024
By Satyam Kumar

1. Bank of Baroda:

Geojit BNP Paribas maintains its ‘Buy’ rating on this bank, raising its target price to Rs 294, indicating a potential upside of 8.7%. In Q4FY24, the company reported revenue growth of 15.2% YoY to Rs  33,774.9 crore, with net profit rising 2.3% YoY to Rs 4,886.5 crore. Analyst Vinod T P attributes the muted profit growth to higher interest expenses, which rose 24.1% YoY to Rs 17,791 crore.

Vinod says, “The bank’s interest income rose 14.4% YoY to Rs 29,583 crore, driven by expansion in the retail loan segment which increased 20.7%.” He is upbeat about BoB as their asset quality improved in Q4, buoyed by a decline in gross non-performing assets (GNPA) and net non-performing assets (NNPA) to 2.9% and 0.7% respectively.

Analyst Vinod is optimistic as the bank has guided deposit growth in the range of 10-12% for FY25. He is also positive as Bank of Baroda aims to lower its GNPA and NNPA further, to 2.5% and 0.5% in FY25.

2. Astral:

Edelweiss maintains a ‘Buy’ rating on this plastic products manufacturer with a target price of Rs 2,476, indicating a potential upside of 13.9%. In Q4FY24, the company’s revenue increased 8.1% YoY and 18.8% QoQ to Rs 1,635.3 crore while its net profit decreased 11.7% YoY (but rose 60% QoQ) to Rs 181.6 crore. He notes that the decline in net profit was due to a decline in EBITDA due to higher employee cost (up 39% YoY) after the ramp up of new plant locations.

Analyst Nikhil Shetty attributes the quarterly improvement to growth in plumbing volumes, which rose 27% QoQ. He is upbeat as the management plans to set up manufacturing in Central India after the expansion in Hyderabad and Kanpur. He highlights the company’s plans to enter the PVC-O pipes segment, which is a cheaper alternative to iron pipes and is used in fresh water and high-pressure applications. He expects a revenue CAGR of 22.6% in FY25-26, buoyed by lower commodity prices and higher real estate activity.

3. JSW Steel:

ICICI Direct assigns a ‘Buy’ call to this steel products manufacturer with a target price of Rs 1,125, indicating an upside of 24.7%. In Q4FY24, the company’s net profit fell 64.6% YoY to Rs 1,299 crore, while revenue decreased marginally to Rs 46,511 crore. According to analysts Shashank Kanodia and Manisha Kesari, the profit was impacted due to higher raw material costs at its Indian operations and a drop in metal realizations.

However, the analysts are optimistic about JSW Steel’s expansion plan. The company plans to increase its domestic steel production capacity to 42 million tonnes per annum (mtpa) by H1FY28, and gradually expand it to 50 mtpa by FY31. It also plans on increasing its downstream capacities to raise its share of high-margin value-added products. The analysts model a volume growth of 10% CAGR over FY25-26 to 30 metric tonnes in FY26.

Kanodia and Kesari expect the EBITDA per tonne to improve with demand recovery in global markets, improved steel prices, and lower coking coal costs. The analysts conclude, “With strategic capacity expansion in place, favorable steel demand, and improvement in profitability, JSW Steel is poised to deliver a 450 bps improvement in margins in FY25.”

4. Shree Cements:

KR Choksey upgrades its rating on this cement manufacturing company to ‘Buy’ with a higher target price of Rs 30,662. This indicates a potential upside of 20.5%. In Q4FY24, the company reported a revenue growth of 6.4% YoY to Rs 5,582.4 crore, with net profit rising 28.4% YoY to Rs 674.9 crore. Analyst Unnati Jadhav highlights that EBITDA rose 59.9% YoY due to margin expansion led by higher inventory gains, better usage of alternate fuels, lower freight costs and employee expenses. She also attributes the growth in revenue to capacity expansion and higher capacity utilisation. 

Jadhav is upbeat as the company intends to fund its capex plans worth Rs 4,500 crore for FY25 through internal accruals and does not intend to raise additional funds. Shree Cements also intends to reduce its logistics costs by investing in their private railway siding and expects to move 25% of their goods via rail in 3-4 years. She expects the firm to post revenue CAGR of 11.8% and adjusted net profit CAGR of 14.2% over FY25-26.

5. Ujjivan Small Finance Bank:

Axis Direct maintains its ‘Buy’ call on this small finance bank with a target price of Rs 64, indicating an upside of 19.7%. In Q4FY24, the bank’s net profit rose 6.5% YoY to Rs 329.6 crore, beating the brokerage's estimates, while its net interest income improved by 26% YoY. Analysts Dnyanada Vaidya and Prathamesh Sawant note that the growth was led by a 24% YoY increase in advances and margin expansion. The bank’s deposits improved 26% YoY while disbursements grew 11% YoY, which the analysts say was driven by strong growth in the non-MFI segments.

Vaidya and Sawant say, “Healthy demand across products, along with a gradual scale-up in new products (gold and vehicle loans), should help the bank sustain its growth momentum over the medium term.”

The analysts expect NIM to remain at 9% in FY25, supported by loan repricing, but expect margins to contract due to a shift in portfolio mix towards secured lending. They also estimate that operating costs will remain elevated as the company plans to invest in technology and human resources to build a better platform. 

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

(You can find all analyst picks here)

 
Trendlyne Marketwatch
Trendlyne Marketwatch
28 May 2024
Market trades lower, ICICI Direct retains its 'Buy' call on Hindalco Industries
By Trendlyne Analysis

Nifty 50 closed at 22,888.15 (-44.3, -0.2%), BSE Sensex closed at 75,170.45 (-220.1, -0.3%) while the broader Nifty 500 closed at 21,387.35 (-105.7, -0.5%). Market breadth is highly negative. Of the 2,115 stocks traded today, 567 were on the uptrend, and 1,509 went down.

Indian indices extended their losses from the afternoon session and closed in the red. The Indian volatility index, Nifty VIX, rose by 4.4% and closed at 24.2 points. NMDC closed lower after its Q4FY24 net profit fell 37.8% YoY to Rs 1,412.7 crore despite an 18.2% YoY rise in revenue. 

Nifty Smallcap 100 and Nifty Midcap 100 closed in the red, taking cues from the benchmark index. However, Nifty Media and Nifty Pharma closed higher than their Monday close. According to Trendlyne’s Sector dashboard, FMCG emerged as the best-performing sector of the day, with a rise of 0.7%.

Major Asian indices fell from their open and closed flat or lower, except for Taiwan’s SE index closing in the green. European indices traded mixed on a volatile day of trade. US index futures traded in the green, indicating a positive start to the trading session. Brent crude oil futures traded marginally higher after closing in the green for two straight trading sessions.

  • Money flow index (MFI) indicates that stocks like Bharat Dynamics, Jupiter Wagons, Mazagon Dock Shipbuilders, and Garden Reach Shipbuilders & Engineers are in the overbought zone.

  • J Kumar Infraprojects' Q4FY24 net profit rises 34.9% YoY to Rs 99.7 crore, while its revenue increases by 25.4% YoY. EBITDA margin for the quarter stands at 14.3%, compared to 14.1% in Q4FY23. The company appears in a screener for stocks relatively outperforming their industry over the past year.

  • Realty stocks like Brigade Enterprises, Phoenix Mills, Sobha, and Prestige Estates Projects are falling in trade. The broader sectoral indices, BSE Realty and Nifty Realty, are also trading in the red.

  • Nomura believes that India will be the largest beneficiary of the 'China+1' strategy. It holds a positive outlook on the electronics, autos, solar energy, and pharma sectors, driven by the supply chain relocation and the Centre’s focus on boosting manufacturing. Among these sectors, Nomura is bullish on Reliance Industries, Bharat Electronics, Exide Industries, Sona BLW, and UNO Minda.

  • Concord Biotech is falling after Ontario Inc. sells a 3.4% stake in the company, amounting to Rs 519 crore, through a block deal.

  • AstraZeneca Pharma India rises sharply as its net profit surges 128.6% YoY to Rs 39.5 crore in Q4FY24. Revenue grows by 33.9% YoY to Rs 391.9 crore, helped by approval of new medicines and indications. It shows up in a screener of stocks where mutual funds increased their shareholding last quarter.

  • Power stocks like CG Power & Industrial Solutions, Adani Power, ABB India and NHPC fall more than 2% in trade. All constituents of the broader BSE Power index are also trading in the red.

  • Reports suggest that 10.2 lakh shares (0.3% equity) of Sun TV Network, amounting to Rs 65.4 crore, change hands in a large deal.

  • NMDC's Q4FY24 net profit falls 37.8% YoY to Rs 1,412.7 crore despite an 18.2% YoY rise in revenue. Profit decreases due to higher royalty expenses and accounting of one-time penal and interest charges. The company increases prices for lump iron ore and fines by 65.5% and 64%, respectively.

  • ICICI Direct retains its 'Buy' call on Hindalco Industries with a higher target price of Rs 835 per share. This indicates a potential upside of 23%. The brokerage remains positive on the stock driven by its strategic capacity expansions at Novelis & Indian operations, and strong demand drivers for aluminium. It expects the company's net profit to grow at a CAGR of 19.2% over FY25-26.

  • PB Fintech is falling after Tencent Cloud Europe sells a 1.2% stake in the company, amounting to Rs 677 crore, through a block deal.

  • Mayank Singhal, Vice Chairman and MD of PI Industries, anticipates strong headwinds in the agrochemicals sector globally in the next few quarters. He projects revenue growth of 15% for FY25 and expects the pharma business to generate over Rs 1,000 crore annually within the next four years.

  • Adani Enterprises is rising as its board of directors approves the fundraising of Rs 16,600 crore via qualified institutional placement (QIP) and other modes in multiple tranches.

  • GMDC falls sharply as its net profit declines by 54.2% YoY to Rs 207.1 crore in Q4FY24. Revenue falls by 31.8% YoY to Rs 822.5 crore, due to a reduction in the power and mining segments. The company features in a screener of stocks with fall in quarterly revenue and net profit (YoY).

  • Reliance Industries' subsidiary, Radisys Corporation, plans to provide support to Ghana-based Next-Gen InfraCo (NGIC) with the launch of 5G services across Ghana in the next six months, followed by expansion to other parts of Africa.

  • According to a poll of economists, India’s GDP is estimated to grow by 6.9% in Q4FY24, and 7.7% in FY24. The GDP numbers are scheduled to be released on Friday.

  • Goodyear India falls as it reports a net loss of Rs 4.2 crore in Q4FY24, compared to a profit of Rs 33.6 crore in Q4FY24, due to weak demand for tractors and trucks. Its revenue drops 15% YoY to Rs 554 crore during the quarter. The company appears in a screener of stocks near their 52-week low.

  • National Aluminium Co rises sharply to its all-time high of Rs 206.3 as its net profit surges by 101.4% YoY to Rs 996.7 crore in Q4FY24, helped by lower raw material costs. However, revenue declines by 1.7% YoY to Rs 3,663.1 crore, due to a reduction in the chemicals and aluminium segments. It features in a screener of stocks where mutual funds increased their shareholding in the last two months.

  • Va Tech Wabag rises as it wins a five-year operation and maintenance contract worth Rs 85 crore from Nama Water Services for the Al Duqm desalination plant in Oman.

  • CLSA maintains its ‘Sell’ rating on Nazara Technologies and lowers the target price to Rs 525, citing Q4 earnings below estimates. The brokerage notes the decline in revenue in the Ad Tech and eSports segments.

  • Natco Pharma rises sharply as its net profit surges by 40.1% YoY to Rs 386.3 crore in Q4FY24, helped by lower raw material costs. Revenue grows by 19.8% YoY to Rs 1,110.3 crore due to an improvement in the pharmaceuticals segment. It appears in a screener of stocks with improving book value per share increasing in the last two years.

  • Adani Energy Solutions' board approves raising Rs 12,500 crore through a qualified institutional placement or other permissible modes.

  • Keystone Realtors raises Rs 800 crore via qualified institutional placement. The company sells shares to institutional investors such as Quant MF, SBI Life Insurance, and SBI General Insurance.

  • LIC of India rises as its Q4FY24 net profit grows by 2.4% YoY to Rs 13,672.6 crore. Revenue increases by 25.3% YoY to Rs 2.5 lakh crore, helped by an improvement in premiums. It features in a screener of stocks with a decrease in provisions.

  • Nifty 50 was trading at 22,974.30 (41.9, 0.2%), BSE Sensex was trading at 75,585.40 (194.9, 0.3%) while the broader Nifty 500 was trading at 21,538.85 (45.9, 0.2%).

  • Market breadth is in the green. Of the 1,884 stocks traded today, 1,102 showed gains, and 708 showed losses.

Riding High:

Largecap and midcap gainers today include 3M India Ltd. (33,914.55, 9.6%), GlaxoSmithKline Pharmaceuticals Ltd. (2,480.50, 5.1%) and Coromandel International Ltd. (1,291.10, 3.6%).

Downers:

Largecap and midcap losers today include Indian Overseas Bank (70.60, -5.2%), UCO Bank (58.15, -4.7%) and IDBI Bank Ltd. (86, -4.1%).

Crowd Puller Stocks

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

Top high volume gainers on BSE included Hatsun Agro Products Ltd. (1,119.75, 11.9%), 3M India Ltd. (33,914.55, 9.6%) and Garware Technical Fibres Ltd. (3,499.80, 9.1%).

Top high volume losers on BSE were Borosil Renewables Ltd. (481.10, -5.0%), Capri Global Capital Ltd. (211.70, -4.5%) and Ingersoll-Rand (India) Ltd. (4,347, -4.5%).

Aarti Drugs Ltd. (495.70, 2.7%) was trading at 22.3 times of weekly average. Sumitomo Chemical India Ltd. (449, 1.8%) and Sun TV Network Ltd. (660.70, 3.8%) were trading with volumes 13.6 and 11.6 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

17 stocks made 52 week highs, while 1 stock tanked below their 52 week lows.

Stocks touching their year highs included - Aegis Logistics Ltd. (749.80, 0.7%), Amara Raja Energy & Mobility Ltd. (1,247.65, 2.1%) and Ashok Leyland Ltd. (226.85, 0.1%).

Stock making new 52 weeks lows included - KRBL Ltd. (274.85, -0.4%).

8 stocks climbed above their 200 day SMA including Hatsun Agro Products Ltd. (1,119.75, 11.9%) and 3M India Ltd. (33,914.55, 9.6%). 11 stocks slipped below their 200 SMA including C.E. Info Systems Ltd. (1,910, -3.3%) and Gujarat Fluorochemicals Ltd. (3,123.05, -2.6%).

 
Trendlyne Marketwatch
Trendlyne Marketwatch
27 May 2024
Market closes flat, Divi's Labs' net profit grows 67.6% YoY to Rs 538 crore in Q4FY24
By Trendlyne Analysis

Nifty 50 closed at 22,932.45 (-24.7, -0.1%), BSE Sensex closed at 75,390.50 (-19.9, 0.0%) while the broader Nifty 500 closed at 21,493 (9.3, 0.0%). Market breadth is in the red. Of the 2,154 stocks traded today, 777 were on the uptick, and 1,327 were down.

Indian indices pared their gains from the afternoon session and closed flat. The Indian volatility index, Nifty VIX, rose by 6.8% and closed at 23.2 points. Divi's Laboratories hit its 52-week high and closed higher after its net profit grew 67.6% YoY to Rs 538 crore in Q4FY24. The company’s revenue also increased by 18.1% YoY to Rs 2,382 crore during the quarter.

Nifty Smallcap 100 and Nifty Midcap 100 closed in the green, outperforming the benchmark index. Nifty Bank and Nifty IT closed higher than their Friday close.  According to Trendlyne’s sector dashboard, Banking and Finance emerged as the best-performing sector of the day, with a rise of 0.9%.

Major Asian indices closed in the green, except for India’s BSE Sensex index closing flat. European indices traded flat or higher amid mixed global cues. US index futures traded marginally lower, indicating a cautious start to the trading session. Brent crude oil futures traded in the green after rising 0.8% on Friday.

  • Relative strength index (RSI) indicates that stocks like Bharat Dynamics, Bharat Electronics, Schaeffler India, and Hindustan Aeronautics are in the overbought zone.

  • HCL Technologies is rising as it collaborates with its arm to manufacture custom silicon chips that support AI-driven business operations.

  • Divi's Laboratories surges to its 52-week high of Rs 4,359 per share as its net profit grows 67.6% YoY to Rs 538 crore in Q4FY24. Revenue increases by 18.1% YoY to Rs 2,382 crore during the quarter. It features in a screener of stocks with zero promoter pledge.

  • PSU bank stocks like Indian Overseas Bank, UCO Bank, Punjab & Sind Bank, and Central Bank of India are rising in trade. The broader sectoral index, Nifty PSU Bank, is also trading in the green.

  • Goldman Sachs raises India’s GDP growth forecast by 10 bps to 6.7% in CY24. The brokerage now expects the RBI to begin with interest rate cuts in Q4CY24, from the earlier projection of Q3. It says the monetary policy committee is cautious about persistent food inflation due to supply disruptions amid ongoing hot weather conditions in many parts of India.

  • Spicejet falls as Delhi High Court reportedly upholds its order asking the company to return two leased aircraft and three engines to TWC Aviation.

  • Awfis Space Solutions' Rs 598.9 crore IPO gets bids for 50.1X the available 86.3 lakh shares on offer on the last day of bidding. The retail investor quota gets bids for 41.2X the available 15.6 lakh shares on offer.

  • Astra Microwave is rising as its net profit surges 302.9% YoY to Rs 54.4 crore in Q4FY24. Revenue grows by 37.5% YoY to Rs 356.7 crore on the back of healthy execution of space orders. It shows up in a screener of stocks with increasing revenue every quarter for the past three quarters.

  • Ashok Kumar Tyagi, the Co-CEO of DLF, notes the strengthening demand for luxury real estate on a QoQ basis. He expects the company to achieve sales of Rs 17,000 crore in FY25, with Rs 3,500 crore coming from the Lux 5 project in Gurugram. Tyagi also highlights the company’s launch pipeline, which includes projects in Goa and Mumbai.

  • KR Choksey retains its 'Accumulate' rating on Devyani International with a target price of Rs 172 per share. This indicates a potential upside of 12.5%. The brokerage remains cautious on the stock due to persistent demand challenges and changing customer preferences in favor of other food categories. It expects the company's revenue to grow at a CAGR of 28.7% over FY25-26.

  • Aurobindo Pharma's Q4FY24 net profit rises 79.5% YoY to Rs 908.8 crore, helped by lower expenses. Revenue increases 16.8% YoY to Rs 7,715 crore during the quarter. The company features in a screener of stocks with increasing profits every quarter for the past four quarters.

  • Nifty 50 rises for five consecutive sessions and hits an all-time high of 23,108.4 today. Stocks like Divi's Laboratories, IndusInd Bank, and Larsen & Toubro are among the top performers in the index.

  • Himanshu Mody, CFO of Suzlon Energy, anticipates the execution of the current order book in the next eight quarters. He adds that the current 3.3 GW order book has a revenue potential of more than Rs 19,800 crore over the next two years.

  • NTPC touches its all-time high of Rs 380.5 per share as its Q4FY24 net profit grows by 26.9% YoY to Rs 6,168.7 crore. Revenue rises by 9.1% YoY to Rs 48,816.6 crore, helped by an improvement in the power generation segment. It features in a screener of stocks where mutual funds increased their shareholding in the past two months.

  • AXISCADES Technologies' arm Mistral Solutions wins an order worth Rs 90 crore from Bharat Electronics to develop radar processing systems.

  • Bosch rises as its Q4FY24 profit increases by 41.7% YoY to Rs 564 crore, led by growth in the automotive products segment. Revenue improves by 6.2% YoY during the quarter. The company appears in a screener for stocks hitting a 52-week high today.

  • Satish Pai, Managing Director of Hindalco Industries, expects aluminium prices to stabilise at around $2,400/tonne compared to the current $2,550. He projects improved EBITDA/tonne in Q1, higher than Q4 levels. Pai highlights the capex spending in FY24 at Rs 4,200 crore, and Rs 6,000-7,000 crore planned for FY25.

  • Reliance Power falls sharply as it reports a net loss of Rs 397 crore in Q4FY24, compared to a profit of Rs 321 crore in Q4FY23 due to higher expenses on PPE and capital work in progress. However, its revenue increases 15.6% YoY to Rs 2,193 crore during the quarter. The company appears in a screener of stocks with foreign institutional investors (FII) or institutions increasing their shareholding.

  • Cochin Shipyard surges to its all-time high of Rs 2,100 per share as its net profit rises sharply by 6.6x to Rs 258.9 crore in Q4FY24. Revenue grows by 103.5% YoY to Rs 1,366.2 crore on account of an improvement in the ship building and ship repair segments. It shows up in a screener of stocks with dividend yield higher than their sector dividend yield.

  • Rail Vikas Nigam rises as it wins an order worth Rs 187.3 crore from Maharashtra Metro Rail Corp to construct elevated metro stations.

  • InCred Equities upgrades Divi’s Laboratories to ‘Add’ and raises the target price to Rs 4,707, as the company’s Q4 results beat estimates. The brokerage notes the significant rise in enquiries and improved visibility in the CCS (custom chemical synthesis) business.

  • United Spirits is rising as its net profit surges 136.3% YoY to Rs 241 crore in Q4FY24. Revenue grows by 14% YoY to Rs 6,622 crore, led by improvements in the beverage alcohol, and sports segments. It shows up in a screener of stocks near their 52-week highs with significant volumes.

  • Nazara Technologies' promoter, Mitter Infotech, sells a 6.4% stake in a block deal. Meanwhile, Plutus Wealth Management buys a stake in the company.

  • Macrotech Developers is rising as its subsidiary enters a share purchase agreement to acquire a 50% stake in Siddhivinayak Realties for Rs 415.6 crore.

  • Torrent Pharmaceuticals rises sharply as its net profit grows by 56.4% YoY to Rs 449 crore in Q4FY24. Revenue increases by 11% YoY to Rs 2,776 crore, helped by improvements in the Indian, Germany, and Brazil markets. It features in a screener of stocks with increasing return on equity (RoE) over the last two years.

  • Nifty 50 was trading at 23,001.65 (44.6, 0.2%), BSE Sensex was trading at 75,655.46 (245.1, 0.3%) while the broader Nifty 500 was trading at 21,553.90 (70.2, 0.3%).

  • Market breadth is in the green. Of the 1,964 stocks traded today, 1,242 were on the uptick, and 653 were down.

Riding High:

Largecap and midcap gainers today include Indian Overseas Bank (74.50, 10.9%), Ashok Leyland Ltd. (226.70, 7.6%) and UCO Bank (61, 7.1%).

Downers:

Largecap and midcap losers today include Hindustan Zinc Ltd. (706.90, -4.8%), Linde India Ltd. (8,704.25, -4.5%) and Solar Industries India Ltd. (9,686.85, -3.2%).

Crowd Puller Stocks

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

Top high volume gainers on BSE included ZF Commercial Vehicle Control Systems India Ltd. (16,261.50, 20%), Indian Overseas Bank (74.50, 10.9%) and Glenmark Pharmaceuticals Ltd. (1,119.45, 8.1%).

Top high volume losers on BSE were EIH Ltd. (443.95, -5.9%), Sun TV Network Ltd. (636.65, -4.3%) and Aurobindo Pharma Ltd. (1,196.35, -3.1%).

Krishna Institute of Medical Sciences Ltd. (1,820.40, -2.9%) was trading at 11.9 times of weekly average. Torrent Pharmaceuticals Ltd. (2,655.25, 1.6%) and AstraZeneca Pharma India Ltd. (6,432.80, 6.8%) were trading with volumes 9.3 and 9.2 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

35 stocks made 52 week highs,

Stocks touching their year highs included - Adani Ports & Special Economic Zone Ltd. (1,431.65, 1.1%), Aegis Logistics Ltd. (744.65, 4.8%) and Amara Raja Energy & Mobility Ltd. (1,221.55, 0.9%).

12 stocks climbed above their 200 day SMA including ZF Commercial Vehicle Control Systems India Ltd. (16,261.50, 20%) and Kajaria Ceramics Ltd. (1,301.55, 2.2%). 16 stocks slipped below their 200 SMA including eClerx Services Ltd. (2,180.80, -2.8%) and Jindal Worldwide Ltd. (334.20, -2.3%).