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Trendlyne Marketwatch
Trendlyne Marketwatch
24 Jun 2024
Market closes higher, Century Textiles' subsidiary, Birla Estates, acquires a 16.5 acre land parcel in Pune
By Trendlyne Analysis

Nifty 50 closed at 23,537.85 (36.8, 0.2%), BSE Sensex closed at 77,341.08 (131.2, 0.2%) while the broader Nifty 500 closed at 22,289.10 (52.9, 0.2%). Market breadth is balanced. Of the 2,176 stocks traded today, 1,083 were in the positive territory and 1,063 were negative.

Indian indices closed marginally higher after switching between losses and gains on a volatile day of trade. The Indian volatility index, Nifty VIX, rose 6.7% and closed at 14.1 points. Cipla fell sharply and closed in the red after it received Form 483 with six observations from the US FDA after inspecting the company's manufacturing facility in Goa.

Nifty Smallcap 100 closed flat while the Nifty Midcap 100 closed in the green. Nifty FMCG and Nifty Realty closed higher than their Friday close. According to Trendlyne’s sector dashboard, FMCG emerged as the best-performing sector of the day, with a rise of 3.5% in a volatile market.

Major Asian indices closed flat or lower, except for Japan’s Nikkei 225 and India’s BSE Sensex closing in the green. European indices traded higher after opening flat. US index futures traded flat, indicating a cautious start to the trading session. Brent crude oil futures recovered from their day lows but still traded in the red on a volatile day of trade.

  • Money flow index (MFI) indicates that stocks like C.E. Info Systems, Mahindra Holidays & Resorts India, The Fertilisers and Chemicals Travancore, and Whirlpool of India are in the overbought zone.

  • Route Mobile surges as it signs a pact with Billeasy and enables WhatsApp-based ticketing for Nagpur, Pune, Hyderabad, and Delhi Metro, becoming the largest enabler for such services in India.

  • Century Textiles & Industries rises sharply as its subsidiary, Birla Estates, acquires a 16.5 acre land parcel in Pune with a development potential of 32 lakh square feet and expected revenue of Rs 2,500 crore.

  • Oil and Natural Gas Corp (ONGC) seeks partners to revive the Deen Dayal gas field in the Bay of Bengal, which has seen little success despite a $1.2 billion investment over seven years.

  • S&P Global Ratings predicts India's GDP growth rate at 6.8% in FY25 and 6.9% in FY26. The ratings agency projects an average CPI of 4.5% in FY25 and 4.6% in FY26. The firm foresees a slowdown in growth to 6.8% in FY25 due to elevated interest rates and lower fiscal stimulus, which will moderate demand in non-agricultural sectors.

  • Devansh Trademart, promoter of Gujarat Fluorochemicals, sells a 1.2% stake in the company. It now holds a 4.8% stake.

  • Stanley Lifestyles' Rs 418 crore IPO gets bids for 3.6X the available 1 crore shares on offer on the second day of bidding. The retail investor quota gets bids for 4.6X the available 51.9 lakh shares on offer.

  • Westbridge Crossover Fund sells a 1.2% stake (7.3 lakh shares) in IndiaMART InterMESH worth Rs 189.9 crore, in a block deal on Friday. Meanwhile, Morgan Stanley Asia and SBI Mutual Fund pick 0.3% and 0.9% stakes, respectively, in the company.

  • Sivaramkrishnan Ganapathi, Vice Chairman and MD of Gokaldas Exports, highlights the company’s target to achieve double-digit revenue growth in FY25, and expects an EBITDA margin of around 11.5% by FY26. He adds that the firm aims to double its revenue run rate in the next 3-5 years.

  • Fertilizers stocks like The Fertilisers and Chemicals Travancore, National Fertilizers, Rashtriya Chemicals & Fertilizers, and Madras Fertilizers fall more than 5.8% in trade as the GST council recommends exempting the sector from the current 5% GST on rate rationalisation. The broader fertilizers industry declines by over 4.8% today.

  • Larsen & Toubro's power transmission & distribution (PT&D) business receives an order worth Rs 1,000-2,500 crore to set up a 185 MW solar power plant and a 254 MWh battery energy storage system in Kajra, Bihar.

  • Sanghvi Movers receives two work orders worth Rs 180 crore, which include turnkey customised solutions for independent power producers in the renewable energy sector and ground piping work from the hydrocarbons sector.

  • Goldman Sachs initiates a 'Buy' call on TBO Tek with a target price of Rs 1,970. The brokerage notes positive characteristics of the company's business model, which include an asset-light balance sheet, negative working capital, strong FCF generation, and low competition & regulatory risks. It expects strong growth in the firm's India business.

  • Ujjivan Small Finance Bank is falling as it lowers its loan growth outlook by 500 basis points to 20% in FY25 from 25% earlier due to stress in the microfinance lending segment in certain states.

  • CarTrade Tech falls sharply as 71 lakh shares (15.1% stake), amounting to Rs 588.3 crore, change hands in a block deal. Highdell Investment and MacRitchie Investments are the likely sellers in the transaction.

  • Garden Reach Shipbuilders rises sharply as it bags an order worth $54 million (approx. Rs 451.1 crore) from Germany's Carsten Rehder Schiffsmakler and Reederei. The order is to construct and supply four multi-purpose cargo ships with a capacity of 7,500 deadweight tonnage (DWT) each.

  • Venkatraman Narayanan, MD and CFO of Happiest Minds Technologies, reiterates the company’s revenue growth target of 35-40% in FY25. He highlights the firm has set up GenAI as a separate business unit, and expects it to deliver 10-15% of the revenue in the next few years.

  • NBCC (India) wins a Rs 100 crore order from REC for the construction and renovation of the existing REC Institute of Power Management & Training buildings in Hyderabad

  • Mas Financial Services is rising as it raises Rs 500 crore through a qualified institutional placement. Notable investors include Nippon India Mutual Fund, ICICI Prudential Mutual Fund, Bajaj Life Insurance, SBI General Insurance, and Aditya Birla Sun Life Mutual Fund.

  • Cipla is falling as it receives Form 483 with six observations from the US FDA after conducting an inspection at the company's manufacturing facility in Goa.

  • Adani Ports Special Economic Zone (APSEZ) joins the S&P BSE Sensex index during the semi-annual rejig, while Wipro exits from the 30-stock index. Stocks like ICICI Bank, Infosys, and others are expected to observe a rise in their weights in the index. Nuvama projects passive inflows of $259 million alongside the addition of 14.9 million shares.

  • Lupin rises as it receives an establishment inspection report from the US FDA for its manufacturing facility in Somerset, New Jersey, with a voluntary action indicated status.

  • Welspun Specialty Solutions surges more than 10% as it bags an order worth Rs 117 crore from Bharat Heavy Electricals to supply seamless stainless steel boiler tubes for two 660 MW thermal power projects.

  • Mazagon Dock Shipbuilders rises as reports suggest that the company is in talks with the Defence Ministry for the Kalvari submarine deal worth Rs 35,000 crore.

  • Prestige Estates Projects' board of directors approves issuing equity shares or securities worth Rs 5,000 crore through qualified institutional placements (QIP).

  • Nifty 50 was trading at 23,406.15 (-95.0, -0.4%), BSE Sensex was trading at 76,864.47 (-345.4, -0.5%) while the broader Nifty 500 was trading at 22,166.15 (-70.1, -0.3%).

  • Market breadth is in the green. Of the 1,964 stocks traded today, 1,008 were on the uptick, and 912 were down.

Riding High:

Largecap and midcap gainers today include Tube Investments of India Ltd. (4,288.15, 7.7%), Bajaj Holdings & Investment Ltd. (8,724.80, 6.1%) and Astral Ltd. (2,384.40, 4.9%).

Downers:

Largecap and midcap losers today include Container Corporation of India Ltd. (1,049.35, -3.8%), PB Fintech Ltd. (1,285.05, -3.8%) and Union Bank of India (141.49, -3.7%).

Crowd Puller Stocks

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

Top high volume gainers on BSE included Bombay Burmah Trading Corporation Ltd. (2,014.40, 19.6%), Route Mobile Ltd. (1,750.05, 14.4%) and Kama Holdings Ltd. (2,969.90, 9.9%).

Top high volume losers on BSE were Ujjivan Small Finance Bank Ltd. (45.83, -5.2%), CreditAccess Grameen Ltd. (1,407.70, -4.4%) and Container Corporation of India Ltd. (1,049.35, -3.8%).

Bajaj Holdings & Investment Ltd. (8,724.80, 6.1%) was trading at 15.2 times of weekly average. Maharashtra Scooters Ltd. (8,950, 7.7%) and KSB Ltd. (4,775, -0.1%) were trading with volumes 12.6 and 8.8 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

38 stocks made 52 week highs,

Stocks touching their year highs included - Astral Ltd. (2,384.40, 4.9%), BASF India Ltd. (5,277.35, 1.6%) and Bombay Burmah Trading Corporation Ltd. (2,014.40, 19.6%).

11 stocks climbed above their 200 day SMA including Route Mobile Ltd. (1,750.05, 14.4%) and Kama Holdings Ltd. (2,969.90, 9.9%). 7 stocks slipped below their 200 SMA including Jyothy Labs Ltd. (429.05, -3.6%) and Vedant Fashions Ltd. (1,092.70, -2.5%).

 
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The Baseline
21 Jun 2024
Five Interesting Stocks Today - June 21, 2024

1. Hindustan Aeronautics: 

This defence company touched a new 52-week high of Rs 5,582.8 on Wednesday after it announced that the Ministry of Defence has issued a request for proposal to procure 156 Light Combat Helicopters. The tender, valued at around Rs 50,000 crore, marks the largest single order for choppers to an Indian company.

Defence stocks have rallied in the past few days after Defence Minister Rajnath Singh announced a target to generate Rs 50,000 crore worth of military exports annually, and promised to speed up 'Make in India' initiatives for defence production.

In Q4FY24, Hindustan Aeronautics (HAL) net profit increased by 52.2% YoY to Rs 4,308.7 crore due to lower tax outgo last year, while revenue rose by 16% YoY to Rs 15,326.1 crore. The EBITDA margin expanded by 439 bps YoY to 30.4%, driven by cost optimization. In FY24, revenue grew by 12.9% YoY to Rs 32,277 crore, beating Trendlyne’s Forecaster estimates by 1.9%. The company appears in a screener for stocks with annual profits improving from the last two years.

C.B. Ananthakrishnan, Chairman, and MD of the company said, "We expect order inflows worth Rs 47,000 crore in FY25, including engines for Sukhoi aircraft and helicopters, with our order book expected to grow to Rs 1.2 lakh crore from Rs 94,000 crore in FY24." HAL is expanding its manufacturing capacity in Tumkur and Nashik to ramp up helicopter and Tejas aircraft production, to meet domestic and international demand for advanced aviation solutions. The company expects additional order inflows of Rs 20,000 crore annually in the repair and overhaul segment over the next few years.

ICICI Direct maintains a 'Buy' rating, with a target price of Rs 5,700. The brokerage anticipates HAL to benefit from its strong order backlog and promising growth trajectory. It expects revenue and PAT to grow at 14% and 13% CAGR respectively over FY25-26. The stock’s PE is currently trading at 45.4, relatively lower compared to its defence peers.

2. Coromandel International:

This agri-solutions provider surged to a new 52-week high of Rs 1,688.5 on Thursday following reports of an anticipated tax exemption in the upcoming GST Council meeting on Saturday. Currently, a GST of 5% is levied on fertilisers, and the sector has been demanding an exemption from this tax.

According to Trendlyne’s industry dashboard, the fertilisers industry has topped the charts after rising over 24.1% in the past week. Multiple catalysts have boosted investor confidence, including the expectation of high fertiliser demand driven by a regular monsoon forecasted this year.

Coromandel has also invested in multiple agri-tech startups such as Dhaksha and Ecozen. Drone company Dhaksha operates in drone-based spraying of pesticides, defence and surveillance applications. Coromandel has also increased its stake in Ecozen, which works on sustainable agriculture solutions such as solar-powered irrigation.

President and CFO Jayashree Satagopan says, “The nano-fertilizer segment can see exponential growth in the coming years”. Coromandel recently announced the inauguration of its nano fertiliser plant at the Kakinada complex in Andhra. This plant has the capacity to produce one crore bottles of nano fertilisers per year, thanks to an automated production line, including a robotic arm for bottling operations.

Geojit Financial Services maintains a ‘Hold’ rating on Coromandel as reduced volume and lower subsidy affected revenue in Q4, which declined 27.6% YoY to Rs 3,996.3 crore. However, the brokerage is positive about the company’s growth prospects, thanks to an improvement in capacity utilisation and the launch of new products. They also expect the stabilisation of raw material prices and operational improvements to boost profitability going forward.

3. EID Parry (India):

This food products company surged 11.1% on Wednesday following reports that the Centre might hike minimum support price (MSP) of sugar for the 2024-25 season This decision comes after the National Federation of Cooperative Sugar Factories (NFCSF) filed a request to increase MSP to Rs 42 per kg from Rs 31 per kg. The share price rise was also helped by the government's plan to increase ethanol blending to 20% by 2025.

In the past month, the company's share price has risen by 23.3%, outpacing the industry’s 14% growth. However, in Q4FY24, the company reported a 17.3% YoY decline in revenue to Rs 5,680 crore, due to higher sugarcane costs and the ban on sugar exports. Despite this, its net profit increased by 23.1% YoY to Rs 220.3 crore.

EID Parry aims to increase revenue from non-sugar segments such as branded sugar, distillery operations, and FMCG products (like millets, pulses, and rice) to reduce reliance on the cyclical sugar industry. According to Chairman Venkatachalam, ”The EID Parry of the future is to be positioned as a bioenergy, food and nutrition company.” To support this shift, the company has significantly expanded its distribution network from 39,000 outlets in FY22 to 110,000 outlets in FY24. Additionally, EID Parry's 56% stake in Coromandel International, a leading fertilizer company diversifying into CDMO and specialty chemicals sectors, should help its growth trajectory.

In Q4FY24 mutual fund holdings grew to 11% from 4.1% in Q3 FY24. This increase was driven by significant purchases, including SBI Magnum Children's Benefit Fund acquiring 5.19%, Parag Parikh Flexi Cap Fund buying 1.34%, and Quant Small Cap Fund raising its stake from 1% to 1.50% during the same period.

4. Brigade Enterprises:

This realty company has risen by 3.1% in the past two days after announcing a Rs 150 crore project to develop a third tower of the World Trade Centre (WTC) at Infopark Kochi. The project has a built-up space of 2.6 lakh square feet, and is expected to complete in three years. The company looks to expand in Tier-2 cities including Kochi and Trivandrum, and this project will increase its footprint in Kerala. It features in a screener of stocks near their 52-week high with significant volumes. 

Meanwhile, on June 12, Brigade Enterprises announced its plan to invest Rs 8,000 crore in Chennai by 2030 with a pipeline of projects across all major verticals, covering over 15 million square feet (msf). The gross development value (GDV) of the residential projects is estimated to be over Rs 13,000 crore. This strengthens the company’s plan to make Chennai its second-largest market after Bengaluru. 

According to Pavitra Shankar, the Managing Director, “We aim to double our growth in the city by expanding all four verticals of residential, commercial, retail, and hospitality”. As part of the plan, it announced the launch of Brigade Icon Residences, a resort in Chennai’s ECR Beach, and a luxury hotel. 

In FY25, Brigade plans to launch over 3 msf of residential projects and about 1 msf of commercial developments in Chennai. Due to the ongoing metro expansion and various infrastructure developments, real estate companies are looking at Chennai as the next big real estate market.  As per data from real estate consultancy Anarock, average prices of residential properties have increased across major cities in India. From March 2016-24, average prices in Chennai have risen to Rs 6,200 per sq ft from around Rs 4,800. 

Over the past quarter, Brigade Enterprises has risen by 55.3%, outperforming the industry by 19.1 percentage points. In Q4FY24, the company’s net profit jumped 197.6% YoY to Rs 206.1 crore. Its revenue rose 102% YoY driven by growth across its real estate, leasing, and hospitality segments. The company has a strong pipeline of 22 msf of ongoing projects and around 16 msf of upcoming projects, which should provide revenue visibility for the next few years. 

Nuvama has a ‘Buy’ rating on the company with a target price of Rs 1,496. The brokerage believes a robust launch pipeline and improving occupancy in hospitality and leasing segments will ensure sustainable growth.

5. Craftsman Automation:

This automobile parts manufacturer rose by 9.7% in the past week. The price rose after the company’s board approved raising funds worth up to Rs 1,200 crore via a Qualified Institutional Placement (QIP), by issuing equity shares with a floor price of Rs 4,426.11 per share. The firm plans to use these proceeds to repay certain outstanding borrowings and for expansion. The company says that it is leveraged due to expansion and acquisitions in FY24, and plans to reduce its debt. 

Craftsman Automation intends to target growth opportunities from OEMs in North India. Speaking about expansions, Chairman and Managing Director Srinivasan Ravi said, “We'll be looking at a capex above Rs 500 crore in FY25, and completing stage one of both the Bhiwadi plant (aluminum casting business) and the Kothavadi plant in Coimbatore (industrial business and powertrain business).” 

Looking at annual numbers, Craftsman’s revenue and profits have doubled between FY 22 and FY24. However Q4FY24 was weaker than expected, and the company’s net profit fell 19.7% YoY to Rs 62.3 crore despite a 12.7% YoY rise in revenue to Rs 1,110.7 crore. It missed Trendlyne Forecaster’s net profit estimate by 42%. The profit fell due to increased raw material costs, as well as depreciation and amortization expenses. 

The results were also affected by weak performance in the powertrain segment, as its revenue grew by only 1% YoY. The segment was impacted due to refurbishment costs and capex investments but exports are now expected to increase from key customers like Daimler, and the management projects that the powertrain segment will grow by 8-12% YoY in FY25.

Motilal Oswal reiterates the ‘Buy’ call on Craftsman Automation and expects a CAGR of 15% in revenue and 27% in profit over FY25-26. Despite a near-term slowdown likely in key segments like commercial vehicles and tractors, the brokerage foresees traction from off-highway and stationary engine segments, as Craftsman has received orders that are expected to commence production in FY25. Motilal expects the revenue from this segment to scale up to $100 million over the next 4-5 years. The company appears in a screener for stocks with increasing shareholding by foreign investors and/or institutions.

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

 
Trendlyne Marketwatch
Trendlyne Marketwatch
21 Jun 2024
Market closes lower, Bajaj Consumer Care to buyback shares worth Rs 166.5 crore
By Trendlyne Analysis

Nifty 50 closed at 23,501.10 (-65.9, -0.3%), BSE Sensex closed at 77,209.90 (-269.0, -0.4%) while the broader Nifty 500 closed at 22,236.20 (-68.9, -0.3%). Of the 2,130 stocks traded today, 938 were gainers and 1,167 were losers.

Indian indices saw losses in the afternoon session and closed in the red.  Markets had opened in the green amid good news for IT stocks, with US company Accenture seeing a higher than expected revenue growth forecast. But the mood turned. 

The Indian volatility index, Nifty VIX, fell by 1.27% and closed at 13.2 points. 

Nifty Smallcap 100 and Nifty Midcap 100 closed in the red, taking cues from the benchmark index. However, Nifty IT held on to its gains and closed higher. According to Trendlyne’s Sector dashboard, Telecom services emerged as the best-performing sector of the day, with a rise of 2.1%.

Major Asian indices closed in the red, except for Taiwan’s Weighted index closing in the green. US index futures traded in the green, indicating a positive start to the session. Brent crude oil futures traded lower after gains earlier in the week. Tesla's share price has continued to struggle amid signs of an increasingly distracted CEO, with Elon Musk reportedly hiring former Tesla employees for his new AI startup.

  • Relative strength index (RSI) indicates that stocks like Coromandel International, Samvardhana Motherson International, The Fertilisers and Chemicals Travancore, and C.E. Info Systems are in the overbought zone.

  • Vodafone Idea rises as it completes its 5G rollout obligation across all 17 circles, according to the Department of Telecommunications.

  • Time Technoplast rises sharply as it receives final approval from the Petroleum and Explosives Safety Organization (PESO) to manufacture and supply high-pressure type-IV composite cylinders for hydrogen.

  • Sun Pharmaceuticals rises as it enters a licensing agreement with Japan-based Takeda Pharma to market Vonoprazan tablets in India. The tablets are used to treat gastrointestinal issues.

  • Anil Gupta, CMD of KEI Industries says, the labour strikes at the company’s plants in Rakholi and Chinchpada are withdrawn, and highlights a production loss of Rs 10 crore. He says KEI targets a double-digit market share in the wires business. Gupta projects revenue growth of 15-16%, with margins at 11% in FY25.

  • Stanley Lifestyles' Rs 418 crore IPO gets bids for 0.8X the available 1 crore shares on offer on the first day of bidding. The retail investor quota gets bids for 1.1X the available 51.9 lakh shares on offer.

  • Akme Fintrade (India)'s Rs 132 crore IPO gets bids for 32.1X the available 78.7 lakh shares on offer on the third day of bidding. The retail investor quota gets bids for 30.7X the available 36.6 lakh shares on offer.

  • DEE Development Engineers' Rs 418 crore IPO gets bids for 28.6X the available 1.5 crore shares on offer on the third day of bidding. The retail investor quota gets bids for 15.3X the available 74.8 lakh shares on offer.

  • Reports suggest that 1.7 crore shares (0.6% equity) of Axis Bank, amounting to Rs 2,088.2 crore, have changed hands in a large deal.

  • Bernstein Research maintains its 'Outperform' rating on Zomato, but upgrades the target price to Rs 230, implying a potential upside of 16%. The brokerage expects the quick commerce business' margins to improve along with its asset-light model.

  • Mrs. Bectors Food Specialities' board approves raising up to Rs 400 crore by issuing any instrument or security including equity shares, debenture, warrants, and any other equity-based instruments or securities.

  • Bajaj Consumer Care rises as it sets July 2, 2024, as the record date for the buyback of shares worth Rs 166.5 crore.

  • India’s flash manufacturing PMI rises to 58.5 in June, compared to 57.5 in May. The flash services PMI stands at 60.4 during the same period.

  • Tata Consultancy Services rises as it signs a deal with Xerox for cloud and GenAI-driven innovation. The agreement also includes developing an ERP (enterprise resource planning) system and an operating model for enhanced business outcomes.

  • Amara Raja Energy & Mobility invests 20 million euros to acquire an additional 4.5% stake in Norwegian firm InoBat AS, bringing its total holding to 9.3%. InoBat AS specializes in research and development and produces batteries for custom electric vehicle designs.

  • Bikaji Foods rises sharply after Nuvama Institutional Equities initiates a 'Buy' call with a target price of Rs 885 per share. This indicates a potential upside of 22.1%. The brokerage remains positive on the stock due to its strong regional presence, customer loyalty, and snack sector expansion plans. Nuvama expects revenue to grow at a CAGR of 18% over FY25-27.

  • JP Morgan notes a slow recovery in demand for staples and mass discretionary products, but expects the pace to pick up in FY25. The brokerage highlights the capex trend across packaged foods, QSR, and paints segments. It recommends ‘Buy’ on Asian Paints, Tata Consumer, Jubilant Foodworks, and United Spirits.

  • Hindustan Zinc rises as it signs an agreement with US-based AEsir Technologies to jointly develop zinc batteries.

  • Equity stake of 9.3% stake in Aster DM Healthcare reportedly changes hands in block deals today. Private equity firm Olympus is the likely seller in the transaction.

  • Axis Direct maintains its 'Buy' call on Dalmia Bharat and raises its target price to Rs 2,140, indicating an upside of 16%. The brokerage is optimistic about the company's ongoing expansion plan to become a pan-India player and sustained demand due to the government’s infrastructure spending. It expects volume and profit to grow at a CAGR of 9% and 26%, respectively, over FY25-FY26.

  • Allied Blenders and Distillers, sets the price band for its IPO at Rs 267-281 per share. The issue, valued at Rs 1,500 crore, consists of a fresh issue worth Rs 1,000 crore and an offer for sale of around Rs 500 crore. The issue opens on June 25.

  • Stanley Lifestyles raises Rs 161.1 crore from anchor investors ahead of its IPO by allotting around 43.7 lakh shares at Rs 369 each. Investors include East Spring Investments India, Quant Mutual Fund, Meru Investment Fund, Franklin India, and HDFC Mutual Fund.

  • Porinju Veliyath buys a 0.5% stake in Indiabulls Real Estate for approx Rs 49.9 crore in a bulk deal on Thursday.

  • GE Power India rises as it wins a Rs 243.5 crore order from NTPC GE Power Services for the repair and maintenance of steam turbines.

  • Avataar Holdings sells around 2% stake (21.6 lakh shares) in RateGain Travel Technologies, worth approx Rs 160.6 crore, in a block deal on Thursday. Meanwhile, Axis Mutual Fund, ICICI Prudential Mutual Fund, and Morgan Stanley Asia pick 0.8%, 0.6%, and 0.2% stakes, respectively, in the company.

Riding High:

Largecap and midcap gainers today include General Insurance Corporation of India (406.30, 4.8%), Bayer Cropscience Ltd. (6,482.95, 4.4%) and APL Apollo Tubes Ltd. (1,646.60, 4.2%).

Downers:

Largecap and midcap losers today include Torrent Power Ltd. (1,503.45, -5.8%), Coromandel International Ltd. (1,549.90, -5.7%) and Tube Investments of India Ltd. (3,983.25, -5.5%).

Volume Rockets

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

Top high volume gainers on BSE included Cera Sanitaryware Ltd. (9,090.30, 9.6%), HLE Glascoat Ltd. (481.60, 6.8%) and Rail Vikas Nigam Ltd. (409.75, 5.8%).

Top high volume losers on BSE were Torrent Power Ltd. (1,503.45, -5.8%), Tube Investments of India Ltd. (3,983.25, -5.5%) and Pfizer Ltd. (4,612.05, -3.6%).

Aster DM Healthcare Ltd. (367.55, 3.2%) was trading at 32.9 times of weekly average. Poly Medicure Ltd. (2,067.80, 3.3%) and Raymond Ltd. (2,527.90, 5.1%) were trading with volumes 21.0 and 18.2 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

38 stocks hit their 52-week highs,

Stocks touching their year highs included - Axis Bank Ltd. (1,237.45, -0.2%), BASF India Ltd. (5,196.90, -0.7%) and Bayer Cropscience Ltd. (6,482.95, 4.4%).

11 stocks climbed above their 200 day SMA including IndiaMART InterMESH Ltd. (2,658, 1.7%) and EPL Ltd. (194.07, 1.1%). 8 stocks slipped below their 200 SMA including Narayana Hrudayalaya Ltd. (1,200.30, -2.6%) and Vedant Fashions Ltd. (1,129.40, -2.2%).

 
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The Baseline
20 Jun 2024
5 stocks to buy from analysts this week - June 19, 2024
By Ruchir Sankhla

1. Minda Corp:

Axis Direct maintains a ‘Buy’ rating on this auto parts and equipment manufacturer with a target price of Rs 502, indicating a potential upside of 7.5%. In Q4FY24 the company’s revenue grew 13.7% YoY to Rs 1,224.8 crore. Analyst Neeraj Chadawar highlights that during the quarter, Minda Corp secured orders worth approximately Rs. 2,000 crore, with electric vehicles making up over 30% of these orders. By March 2024, the total new orders amounted to Rs. 10,000 crore across various product lines.

Analysts are positive about the company’s growth due to new order wins and Minda’s focus on EVs. They expect EBITDA margins to improve from approximately 11.1% in FY24 to around 12.7% by FY26, driven by a richer product mix. They estimate a CAGR of 17% in revenue, 26% in EBITDA, and 38% in adjusted PAT over FY 25-26, supported by a strong order book and a confident management.

2. Praj Industries:

Prabhudas Lilladher maintains a ‘Buy’ rating on this industrial machinery company with a target price of Rs 815, indicating a potential upside of 19.1%. The analysts Amit Anwani and Shirom Kapur highlight the company’s goal to achieve three times its revenue by 2030, largely driven by exports. Praj intends to increase its export revenue share to around 50% by 2030 (vs 19% currently).

Anwani and Kapur remain positive on the company in the long run due to its leadership in domestic ethanol (50-55% market share) and the company’s focus on new technologies such as 2G ethanol,sustainable aviation fuel (SAF), bio-manufacturing, and multi-feedstock plants. They aim to expand their services business to approx. 10% of revenue by 2030 (vs 4% currently) by focusing on building distribution channels across global markets.

Anwani and Kapur note that the stock is currently trading at a P/E ratio of 37.4 times and 29.2 times for FY 25-26. They expect the stock to trade at a P/E of 34 times for FY26, factoring substantial long-term growth opportunities amid a stable policy environment.

3. Mankind Pharma:

Motilal Oswal initiates a ‘Buy’ rating on this pharma company with a target price of Rs 2,650, indicating a potential upside of 19.7%. Analysts Tushar Manudhane and Akash Manish Dobhada note that Mankind Pharma plans to boost growth over the next three to five years by expanding its business in chronic therapies with more niche products, and by strengthening its presence in metro and Tier-1 cities.

Analysts believe the company is broadening its reach by investing heavily in brand building, in both the prescription and consumer healthcare markets by acquiring Panacea Biotec to enter the transplant segment and licensing products like Neptaz, Symbicort, and Nobeglar to strengthen its position in cardiology, diabetes, and respiratory therapies.

Manudhane and Dobhada anticipate achieving a 16% earnings growth for FY 25-27, driven by a 12% sales increase and a 270 basis point margin expansion. They also expect the company to grow more brands into the INR 500 million to INR 1 billion range, given its strong brand presence and sustainable earnings growth.

4. CESC:

Sharekhan retains a  ‘Buy’ rating on this electric utilities company with a target price of Rs 170, indicating a potential upside of 13.7%. In Q4FY24 the company’s revenue grew by 25.7% YoY, while its net profit fell 7.7% YoY to Rs 400 crore due to higher operating and depreciation expenses.

The analyst notes that CESC plans to aggressively expand its real estate portfolio, aiming to add 3 GW of capacity with a capital expenditure of approximately Rs. 12k-13k crore over the next 4-5 years. The growth offers a good value proposition to investors, according to the brokerage. The company is seeing lower real estate costs, strong growth prospects, and likely improvement in environmental, social, and governance (ESG) ratings. Additionally, its subsidiary CESC Projects has been awarded a contract by the Solar Energy Corporation of India to set up a 10,500 tonnes per annum green hydrogen production facility in India.

The analyst is optimistic about the real estate capex and the turnaround of power distribution businesses. They expect the valuation to be at 1.9 times its projected book value for FY2026, with a promising dividend yield of 3-4%.

5. SJS Enterprises:

Edelweiss reiterates ‘Buy’ rating on this auto parts & equipment smallcap manufacturer with a target price of Rs 980, indicating a potential upside of 25.8%.In Q4FY24 SJS’ revenue grew by 72% YoY to Rs 188.7 crore and its net profit rose 73.6% YoY to Rs 26.7 crore. These gains were driven by a shift towards premium products, increased content per vehicle, and significant cross-selling opportunities from the acquisitions of Exotech Plastics Pvt and Walter Pack India (WPI).

Analyst Piyush Parag notes that the company has recently focused on mergers and acquisitions to diversify its product portfolio and introduce value-added products. The management is also targeting the North American market through acquisitions to expand its client base and strengthen its product offerings, aiming to increase market presence and revenue.
Parag forecasts significant growth for the company, with a projected sales, EBITDA, and PAT CAGR of 20%, 25%, and 34% respectively from FY24 to FY26. He expects an adjusted Return on Equity (RoE) and Return on Capital Employed (RoCE) to reach 20% and 28% by 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
20 Jun 2024
Market closes higher, ICICI Direct retains a 'Buy' call on Mahindra & Mahindra
By Trendlyne Analysis

Nifty 50 closed at 23,567 (51, 0.2%), BSE Sensex closed at 77,478.93 (141.3, 0.2%) while the broader Nifty 500 closed at 22,305.10 (80.2, 0.4%). Of the 2,148 stocks traded today, 1,377 were on the uptick, and 745 were down.

Indian indices closed in the green after seeing volatility throughout today's trading. The Indian volatility index, Nifty VIX, fell 2.6% and closed at 13.3 points. Disappointing economic data from the US has pushed gold prices to a two week high, and the rupee hit a record low of 83.65 against the dollar. 

Nifty Smallcap 100 and Nifty Midcap 100 closed in the green, taking cues from the benchmark index. Nifty Realty and Nifty Metal were among the top index gainers today. According to Trendlyne’s Sector dashboard, Fertilizers emerged as the best-performing sector of the day, with a jump of over 14%.

Asian indices closed in the red, except for Japan’s Nikkei 225 index which closed higher. European indices are trading higher amid mixed global cues. Brent crude oil futures are trading up 0.2% amid expectations of higher travel demand.

  • Gujarat Narmada Valley Fertilizers & Chemicals sees a long buildup in its June 27 future series as its open interest rises 36.5% with a put-call ratio of 0.6.

  • The Ministry of Defence appoints Manoj Jain as the Chairman & Managing Director of Bharat Electronics, effective June 20.

  • Tata Communications rises as it secures a five-year $250 million (approx. Rs 2,091 crore) sustainability-linked loan from ANZ, DBS Bank, and Export Development Canada (EDC) to meet its carbon emission reduction targets and enhance long-term sustainability.

  • Akme Fintrade (India)'s Rs 132 crore IPO gets bids for 8.3X the available 78.7 lakh shares on offer on the second day of bidding. The retail investor quota gets bids for 11.4X the available 36.6 lakh shares on offer.

  • Sponge iron and TMT bars manufacturer, Vraj Iron & Steel, sets the price band for its IPO at Rs 195-207 per share. The size of the issue is Rs 171 crore, and is completely a fresh issue. The issue opens on June 26.

  • DEE Development Engineers' Rs 418 crore IPO gets bids for 6.3X the available 1.5 crore shares on offer on the second day of bidding. The retail investor quota gets bids for 6.5X the available 74.8 lakh shares on offer.

  • ICICI Direct retains its 'Buy' call on Mahindra & Mahindra with a higher target price of Rs 3,420 per share. This indicates a potential upside of 18.9%. The brokerage remains positive on the stock due to its strong market share in the SUV and tractor segments, robust new products portfolio and focus on capital efficiency. It expects revenue to grow at a CAGR of 14.4% over FY25-26.

  • PNB Housing Finance falls as over 1.3 crore shares (5.2% stake), amounting to Rs 1,095.1 crore, reportedly change hands in a block deal. General Atlantic and Asia Opportunities Fund are the likely sellers in the transaction.

  • Reports suggest that 83.4 lakh shares (2.1% equity) of Chambal Fertilisers & Chemicals, amounting to Rs 443 crore, have changed hands in a large deal.

  • Metal stocks like Vedanta, NMDC, Hindustan Zinc, and National Aluminium are rising in trade. The broader sectoral indices, Nifty Metal and BSE Metal are also trading in the green.

  • Sun Pharmaceutical Industries falls as it receives a warning letter from the US FDA for its Dadra facility. The warning letter summarises violations concerning Current Good Manufacturing Practice (cGMP) regulations, the contents of which will be made public by the USFDA in due course.

  • Tanfac Industries surges as it signs a framework agreement worth $81 million (approx. Rs 675 crore) over the next five years with Japanese specialty chemical companies to supply refrigerant gas.

  • Ashok Atluri of Zen Technologies says, the company focuses on enhancing its existing product line, and highlights plans for new launches in the next 18 months. He notes the strong demand in its anti-drones segment from domestic and foreign governments. Atluri projects the company's revenue at Rs 900 crore in FY25.

  • PE firm WestBridge Capital sells a 1.8% stake (1.3 crore shares) in AU Small Finance Bank, amounting to Rs 845 crore, in a bulk deal. Meanwhile, Goldman Sachs Mauritius picks 43.3 lakh shares in the company worth Rs 281.8 crore.

  • Kamidi Narsimha Reddy, promoter of KNR Constructions, sells a 1.9% stake in the company on Wednesday. He now holds a 30.6% stake.

  • Brigade Enterprises rises as it inks an agreement to develop a third world trade center tower at Infopark, Kochi. The project is worth Rs 150 crore.

  • DCB Bank is rising as Motilal Oswal upgrades its rating to 'Buy' with a target price of Rs 175. The brokerage notes the recovery in loan growth driven by the bank's shift towards retail loans. It expects GNPA and NNPA ratios to improve to 2.6% and 0.8%, respectively, by FY26, and projects credit costs at 0.5%.

  • CE Info Systems surges as Goldman Sachs reportedly initiates coverage with a 'Buy' call and a target price of Rs 2,800 per share. This indicates a potential upside of 24.3%. The brokerage believes the company is well positioned for growth due to market leadership in the fast-growth end-markets, with an 80% market share in automotive OEM navigation software. It expects revenue to grow at a CAGR of 38% over FY25-27.

  • Sapphire Foods India rises as its board approves the sub-division/split of its existing equity shares from one equity share with a face value of Rs 10 into five equity shares with a face value of Rs 2.

  • Blue Dart Express rises as it collaborates with Skye Air to launch drone deliveries and focus on the growing e-commerce sector.

  • Reliance Jio gains 26.9 lakh wireless subscribers on a net basis in April, while Bharti Airtel adds 7.5 lakh. Vodafone Idea’s subscribers continue to decline, with a loss of 7.3 lakh on a net basis.

  • KEI Industries is falling as labour strikes at its plants in Rakholi and Chinchpada partially affect operations. Reports suggest the company will have a potential production loss of Rs 8 crore per day.

  • Anil Kumar Goel sells a 0.5% stake in Dhampur Sugar Mills for approx Rs 8.5 crore in a bulk deal on Wednesday.

  • Som Distilleries & Breweries falls sharply as the Madhya Pradesh Excise Department reportedly revokes the company's license. This comes after 50 minors were rescued from its distillery in the Raisen district of Bhopal.

  • Indian Oil enters a 50:50 joint venture (JV) with GPS Renewables to advance biofuel adoption. The JV will focus on integrating biogas technologies to convert waste into compressed biogas (CBG).

Riding High:

Largecap and midcap gainers today include Bharat Forge Ltd. (1,791.40, 5.2%), Gujarat Fluorochemicals Ltd. (3,424, 5.0%) and Deepak Nitrite Ltd. (2,605.25, 4.8%).

Downers:

Largecap and midcap losers today include Power Finance Corporation Ltd. (481.35, -3.6%), Tube Investments of India Ltd. (4,213.40, -3.3%) and Linde India Ltd. (8,710.65, -2.6%).

Movers and Shakers

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

Top high volume gainers on BSE included C.E. Info Systems Ltd. (2,409.65, 20%), Rashtriya Chemicals & Fertilizers Ltd. (222.26, 20%) and Chambal Fertilisers & Chemicals Ltd. (557.85, 19.3%).

Top high volume losers on BSE were PNB Housing Finance Ltd. (791.80, -5.7%), Sun Pharmaceutical Industries Ltd. (1,471, -2.2%) and Route Mobile Ltd. (1,517.15, -2.0%).

Sapphire Foods India Ltd. (1,576.30, 1.1%) was trading at 11.9 times of weekly average. Gujarat Narmada Valley Fertilizers & Chemicals Ltd. (765.55, 9.8%) and Deepak Fertilisers & Petrochemicals Corporation Ltd. (728.15, 12.8%) were trading with volumes 11.3 and 8.8 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

30 stocks overperformed with 52-week highs,

Stocks touching their year highs included - BASF India Ltd. (5,234.50, 6.7%), Bharat Forge Ltd. (1,791.40, 5.2%) and Carborundum Universal Ltd. (1,749.05, -2.9%).

10 stocks climbed above their 200 day SMA including India Cements Ltd. (233.15, 6.7%) and Gujarat Fluorochemicals Ltd. (3,424, 5.0%). 7 stocks slipped below their 200 SMA including Aether Industries Ltd. (868.50, -1.2%) and Cyient Ltd. (1,870.50, -1.1%).

 
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The Baseline created a screener High Momentum - Stocks …
20 Jun 2024
This screener looks for high Technical Momentum Score stocks. As seen in the screener, stocks with high Momentum Scores significantly outperform indices. The strategy is optimized to pick the top 20 stocks with the highest Momentum scores. This screener is a dynamic strategy that changes stocks based on daily momentum, and momentum changes. Stocks enter and exit this screener on an ongoing basis. To follow this strategy, set a screener alert. For this strategy, we recommend a weekly alert. This is a shorter-term strategy due to its focus on technicals.
 
Trendlyne Marketwatch
Trendlyne Marketwatch
19 Jun 2024
Market closes lower, Ami Organics' board approves raising Rs 500 crore via QIP
By Trendlyne Analysis

Nifty 50 closed at 23,516 (-41.9, -0.2%), BSE Sensex closed at 77,337.59 (36.5, 0.1%) while the broader Nifty 500 closed at 22,224.90 (-104.7, -0.5%). Of the 2,146 stocks traded today, 809 showed gains, and 1,315 showed losses.

Indian indices pared the gains from the afternoon session and closed in the red. The volatility index, Nifty VIX, rose by 5.7% and closed at 13.7 points. Reports suggest Vodafone is likely to sell a 19% stake in the Indus Towers for Rs 17,000 crore in a bulk deal.

Nifty Midcap 100 and Nifty Smallcap 100 closed lower following the benchmark index. Nifty Bank and Nifty IT closed higher than Tuesday’s closing level. According to Trendlyne’s sector dashboard, fertilizers emerged as the top-performing sector of the day, with a rise of over 5.2%.

Most European indices trade in the red, except for Italy’s FTSE MIB trading flat. US indices futures trade flat, indicating a cautious start. UK’s CPI inflation for May declined to 2% from 2.3% in April, hitting the Bank of England's inflation target for the first time in three years.

  • Money flow index (MFI) indicates that stocks like Varroc Engineering, Home First Finance, JK Paper, and Bikaji Foods International are in the overbought zone.

  • Axis Bank and its subsidiaries enter an agreement to acquire an additional stake worth up to Rs 336 crore in Max Life Insurance. This will increase the shareholding of the Axis Entities in Max Life to around 20%.

  • Datamatics Global rises sharply as it secures a patent for its AI-powered document processing software TruCap plus. The software facilitates automated document processing for structured, semi-structured, and unstructured documents.

  • Bharat Forge plans to invest $40 million in its wholly-owned subsidiary, Bharat Forge Aluminum USA, to support capital expenditure for an aluminum forging facility.

  • Crude oil prices rise marginally due to increased tensions between Russia and Ukraine, and the West Asian region. August Brent oil futures hover around $85.3 per barrel, while August WTI (West Texas Intermediate) crude oil futures trade around $80.7 per barrel.

  • Akme Fintrade (India)'s Rs 132 crore IPO gets bids for 1.6X the available 78.7 lakh shares on offer on the first day of bidding. The retail investor quota gets bids for 2.5X the available 36.6 lakh shares on offer.

  • DEE Development Engineers' Rs 418 crore IPO gets bids for 1.2X the available 1.5 crore shares on offer on the first day of bidding. The retail investor quota gets bids for 1.6X the available 74.8 lakh shares on offer.

  • SEPC surges as its board approves a rights issue of 15.4 crore equity shares for an aggregate amount not exceeding Rs 200 crore. The company has fixed June 25, 2024, as the record date.

  • CLSA reiterates its 'Buy' rating on Varun Beverages with a higher target price of Rs 1,977. The brokerage believes the company's enhanced affordability of offerings and expansion into new territories and product lines will help support growth. It notes that broader distribution channels are contributing to increased market penetration.

  • Sona BLW Precision Forgings receives certification under the PLI scheme for automobile and auto components from the Ministry of Heavy Industries. The certification was awarded for its traction motors designed for electric three-wheelers.

  • Reports suggest that 62.5 lakh shares (11.7% stake) of Sansera Engineering, amounting to Rs 750 crore, have changed hands in a block deal. Client Ebene and CVCIGP II Employee Ebene are the likely sellers in the transaction.

  • ZF Commerical Vehicle plunges as 14.5 lakh shares (7.6% stake), amounting to Rs 2,287 crore, reportedly change hands in a block deal. Wabco Asia is the likely seller in the transaction.

  • Tata Motors announces a price hike of 2% for its commercial vehicles, effective July 1, to offset the impact of rising commodity prices.

  • Delta Corp surges over 16% as it anticipates relief from retrospective taxes ahead of the GST Council meeting on June 22. The council will likely amend the CGST Act to waive unpaid GST dues owing to uncertainties or common business practices.

  • Bernstein initiates coverage on Bajaj Finance with a 'Market-Perform' rating and a target price of Rs 6,800. The brokerage notes the company faces several challenges, including a sector-wide slowdown in consumption credit, risks of scale-up in new segments having limited overlap with current core segments, and increased competitive intensity.

  • Kalpataru Constructions, promoter of Kalpataru Projects International, sells a 5.3% stake (86.9 lakh shares) amounting to approx. Rs 1,003.4 crore in a bulk deal on Tuesday. Meanwhile, the Custody Bank of Japan picks a 0.6% stake in the company.

  • RBI Governor Shaktikanta Das projects a GDP growth rate of 7.3% for Q1FY25. He anticipates sustained economic momentum fueled by the revival in rural demand, increased government spending, and higher services exports. Das highlights inflation has been decreasing, and achieving further disinflation could be challenging, given the volatility in food prices. He cautions against prematurely changing the policy stance at this juncture.

  • DEE Development Engineers raises Rs 125 crore from anchor investors ahead of its IPO by allotting 61.6 lakh shares at Rs 203 each. Investors include Morgan Stanley Asia, Citigroup Global Markets Mauritius, HDFC Mutual Fund, Aditya Birla Sun Life Trustee, and Kotak Mahindra Trustee. Meanwhile, Akme Fintrade raises Rs 38 crore from anchor investors including Sigma Global Fund, Zeal Global Opportunities Fund, and SB Opportunities Fund.

  • Shanghai Fosun Pharmaceutical Group's arm, Fosun Pharma Industrial, plans to sell a 5% stake in Gland Pharma for $172 million in block deals.

  • Bank stocks like IndusInd Bank, ICICI Bank, Kotak Mahindra Bank, and HDFC Bank are rising in trade. Nifty Bank hits an all-time high of 51,256 today.

  • Amur S Lakshminarayanan, CEO of Tata Communications, highlights the company's investments in various areas that could help achieve the data revenue target of Rs 28,000 crore. He anticipates improved margins over the medium and long term, supported by increasing EBITDA and better conversion rates, leading to improved cash flows.

  • Ami Organics rises as its board approves raising Rs 500 crore via a qualified institution placement by offering shares at a floor price of Rs 1,228.7 per share.

  • Indus Towers falls as reports suggest that Vodafone will likely sell a 19% stake in the company for Rs 17,000 crore in a bulk deal.

  • Porinju Veliyath buys a 0.7% stake in Protean eGov Technologies for approx Rs 35.4 crore in a bulk deal on Tuesday.

  • Craftsman Automation's board approves raising funds worth up to Rs 1,200 crore via a qualified institution placement by issuing equity shares having a face value of Rs 5 each.

Riding High:

Largecap and midcap gainers today include Zomato Ltd. (198.49, 5.2%), HDFC Bank Ltd. (1,657.85, 3.1%) and Axis Bank Ltd. (1,226.65, 2.9%).

Downers:

Largecap and midcap losers today include Endurance Technologies Ltd. (2,593.60, -5.0%), Zee Entertainment Enterprises Ltd. (154.34, -4.1%) and Hindustan Aeronautics Ltd. (5,311.95, -4%).

Volume Shockers

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

Top high volume gainers on BSE included Delta Corp Ltd. (147.41, 11.5%), EID Parry (India) Ltd. (8,14.80, 11.1%) and Jubilant Ingrevia Ltd. (555.80, 7.9%).

Top high volume losers on BSE were ZF Commercial Vehicle Control Systems India Ltd. (16,244.85, -6.0%), KNR Constructions Ltd. (358.15, -3.7%) and Indus Towers Ltd. (334, -3.1%).

Gland Pharma Ltd. (1,828.10, -0.6%) was trading at 11.7 times of weekly average. Chambal Fertilisers & Chemicals Ltd. (467.65, 6.7%) and Au Small Finance Bank Ltd. (656.95, -1.1%) were trading with volumes 10.0 and 8.1 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

43 stocks hit their 52-week highs,

Stocks touching their year highs included - Avanti Feeds Ltd. (639.35, -0.1%), Axis Bank Ltd. (1,226.65, 2.9%) and Balkrishna Industries Ltd. (3,289.60, -1.7%).

14 stocks climbed above their 200 day SMA including Delta Corp Ltd. (147.41, 11.5%) and Deepak Fertilisers & Petrochemicals Corporation Ltd. (645.50, 4.2%). 11 stocks slipped below their 200 SMA including RHI Magnesita India Ltd. (660.60, -4.0%) and Titan Company Ltd. (3,462.35, -3.5%).

 
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The Baseline
19 Jun 2024
By Satyam Kumar

As the dust surrounding the election finally settles, the volatility index India VIX has dropped by over 50% since June 4, after peaking at around 31.7 the day the Lok Sabha election results were announced. Markets breathed a sigh of relief after the Centre signaled continuity, with the BJP-led NDA alliance forming a government with Narendra Modi re-elected as Prime Minister for a third term. There were no changes in significant ministries such as Finance, Highway, Defence and Home. 

Markets are now looking ahead to the upcoming results season for the first quarter of the current fiscal year. In this week’s Chart of the Week, we take a look at a screener of companies that have high Forecaster earnings per share (EPS) growth estimates for Q1FY25. We also look at their trailing twelve-month price-to-earnings (PE TTM) ratio to assess their current valuations.

In the interactive chart above, each bubble represents a company, with its size directly proportional to its EPS growth estimate. Companies with expensive valuations having high PE TTM are shown in red, while those with comparatively cheaper valuations are in green.

Companies with high EPS growth estimates are trading at expensive valuations

Beauty products retailerFSN E-Commerce Ventures (Nykaa), has the highest EPS growth estimates among its Nifty500 peers at 400% YoY for Q1FY25. With such high EPS growth expectations by institutional analysts, the share price has risen steadily and the stock is at an eye-popping valuation, with a PE TTM of 1,514. Nykaa launched ‘Nysaa’ in Q4FY24 for the GCC market which includes UAE, Saudi Arabia, Qatar, Oman, Kuwait and Bahrain. Management believes that GCC’s beauty and personal care market size of around $30 billion offers headroom for high growth. Nysaa’s e-commerce platform was launched in Jan’24 and its first offline store was opened in Mar’24 in Dubai.

Another retail player, Trent has seen its share price surge 206% in the past year, and it currently trades at a PE TTM of 125.4. The company is seen doubling down on the expansion of its value retail segment ‘Zudio’ with stores growing from 352 in FY23 to 545 in FY24. Motilal Oswal expects it to further grow at a CAGR of 24.5% in FY25-26. Forecaster estimates EPS growth of 285% in Q1FY25.

Similarly, electronics manufacturerDixon Technologies saw its share price rise 147.3% in the past year, boosted by the PLI and Make in India government schemes. Analysts are bullish on this stock and project an EPS growth consensus of 100% YoY in Q1FY25. The stock is currently trading at an expensive valuation given its future growth prospects, with a PE TTM of 182.9. The company is a top pick for premium smartphone makers like Apple and Google to localise their production in India.

PSU companies with high EPS growth estimates trade at cheaper valuations

With the current government’s infra outlay, analysts expect PNC Infratech to post EPS growth of 239% in Q1FY25. The company is trading at PE TTM of 13.4 as it declined by 10.1% after the Central Bureau of Investigation (CBI) investigated a few of its officials related to a Rs 10 lakh bribery case. However, analysts remain bullish on this stock, with expectations of new orders from the re-elected ministry. 

Another PSU, Punjab National Bank, is also trading at a very inexpensive valuation with a PE TTM of 15.6, with Forecaster estimating EPS growth of 177% in Q1. Over the past three fiscal years (FY21-24), its EPS grew at a CAGR of 47.2%. Even though the net interest margins have declined owing to the fairly high cost of funds, the bank benefited from lower provisions, which declined by 59% YoY thanks to lower NPA provisions and provision reversals.

Meanwhile, oil & gas company Petronet LNG is expected to report EPS growth of 149% in Q1FY25. The stock currently trades at a PE TTM of 13.3. The newly formed government has revived talks on the inclusion of natural gas under the GST scheme. Analysts expect this move to lower prices by $0.8-0.9 per mmBtu, leading to faster adoption and volume expansion.

Cement & construction firms with high growth prospects trade at fair valuations

Analysts are bullish on cement-producing companies as their operating margins have improved in recent quarters due to debt repayment and industry consolidation. Forecaster estimates Q1FY25 EPS growth of 84.2%, 115.5% and 67.5% for Dalmia Bharat, Birla Corporation, and JK Cement, respectively. Both cement and construction firms stand to benefit from the government’s budget outlay of Rs 11,11,111 crore. Construction firm Larsen & Toubro is currently trading at a PE TTM of 39.7, with Forecaster estimating EPS growth of 55.2% in Q1.

On the other hand, auto manufacturer Tata Motors is also trading at a PE TTM of 10.5. Forecaster estimates EPS growth of 121.3% in Q1FY25 as the company cleared off its debt taken by domestic business in the previous quarter, leading to lower financing costs and better profitability in the upcoming quarters. Margins have also risen in recent quarters driven by demand for luxury Jaguar Land Rover vehicles.

 
Trendlyne Marketwatch
Trendlyne Marketwatch
18 Jun 2024
Market closes higher, Rail Vikas Nigam wins a contract worth Rs 160.1 crore
By Trendlyne Analysis

Nifty 50 closed at 23,557.90 (92.3, 0.4%), BSE Sensex closed at 77,301.14 (308.4, 0.4%) while the broader Nifty 500 closed at 22,329.60 (115.3, 0.5%). Of the 2,178 stocks traded today, 1,164 were in the positive territory and 1,000 were negative.

Indian indices extended the gains from the afternoon session and closed in the green. The volatility index, Nifty VIX, rose by 1.2% and closed at 13 points. Alembic Pharmaceuticals gets US FDA approval for its Dabigatran Etexilate capsules used in reducing the risk of stroke and blood clots in adult patients. The capsules have an estimated market size of $179 million annually.

Nifty Midcap 100 and Nifty Smallcap 100 closed higher following the benchmark index. Nifty Realty and Nifty Bank closed higher than Friday’s closing level. According to Trendlyne’s sector dashboard, fertilizers emerged as the top-performing sector of the day, with a rise of over 5.4%.

Most European indices trade in the red, except for Switzerland’s SMI index trading flat. US indices futures trade flat, indicating a cautious start. Eurozone’s CPI inflation for May increased to 2.6% from 2.4% in April.

  • Relative strength index (RSI) indicates that stocks like Endurance Technologies, Coromandel International, Home First Finance, and JK Paper are in the overbought zone.

  • Biocon falls as it receives Form 483 with three observations from the US FDA after conducting a good manufacturing practices (GMP) inspection at the company's API manufacturing facility in Visakhapatnam.

  • GMR Airports Infrastructure rises as its passenger traffic increases 7% YoY to 1.1 crore, while aircraft movements grow by 6% YoY to 69,055.

  • Jubilant Pharmova declines by more than 3% as the US FDA issues 15 observations after conducting an audit of the Jubilant HollisterStier General Partnership’s (JHSGP) contract manufacturing facility in Montreal, Canada.

  • Gallantt Ispat rises sharply to hit its upper limit after it emerges as the preferred bidder for Rajasthan's Todupura Iron ore block, as confirmed by the Director of Mines and Geology.

  • Alembic Pharmaceuticals gets US FDA approval for its Dabigatran Etexilate capsules used in reducing the risk of stroke and blood clots in adult patients. The capsules have an estimated market size of $179 million annually.

  • Dhanlaxmi Bank’s board appoints Ajith Kumar K K as the Managing Director and Chief Executive Officer, for a period of three years, effective June 20, 2024.

  • Reports suggest that 20.4 lakh shares (1.7% equity) of Alkem Laboratories, amounting to Rs 1,011 crore, change hands in a large trade.

  • JNK India rises as it wins a Rs 350-500 crore order from Reliance Industries for a gas cracker unit de-bottlenecking project at Reliance’s Nagothane manufacturing division.

  • NBCC secures an order worth Rs 70 crore from the Grid Controller of India for planning, designing, and executing interior and infrastructure work at Grand Rue to establish GRID-INDIA in New Delhi. The company has won orders worth Rs 1,500 crore in the last two weeks.

  • Som Distilleries & Breweries falls as reports suggest that the National Commission for Protection of Child Rights finds children working at the firm's plant in Madhya Pradesh. However, the firm clarifies that the child labour concerns are related to its associated company, and blames private contractors for the mishap.

  • Godawari Power and Ispat rises sharply to its all-time high of Rs 1,179.9 after its board approves a Rs 301 crore buyback of up to 21.5 lakh equity shares at Rs 1,400 per share. The company sets June 28 as the record date for the buyback.

  • Zomato is reportedly in talks to acquire Paytm’s movies, and ticketing business in a deal worth Rs 1,500-1,900 crore. The company clarifies that a binding agreement has not yet been signed.

  • Rail Vikas Nigam wins a contract worth Rs 160.1 crore from East Coast Railway for providing automatic block signaling system and alteration in existing stations.

  • Goldman Sachs Funds sells a 0.8% stake in Restaurant Brands Asia for approx Rs 42.8 crore in a bulk deal on Friday.

  • Marshall Wace Investment-Eureka Fund sells a 0.4% stake (14.7 lakh shares) in Shriram Finance, amounting to approx. Rs 393.8 crore in a block deal on Friday. Meanwhile, BNP Paribas Financial Markets buys a stake in the company.

  • Mohit Joshi, CEO and MD of Tech Mahindra, anticipates improved demand conditions in the next 6-12 months. He highlights the company’s target of 500 bps margin expansion, and projects EBIT margin of 15% by FY27.

  • Infinite Trade & Investment, promoter of Adani Enterprises, buys a 2% stake in the company. It now holds a 74% stake.

  • Hindustan Aeronautics rises as the Ministry of Defence issues a request for proposal for the procurement of 156 light combat helicopters.

  • LE Travenues Technology’s shares debut on the bourses at a 48.5% premium to the issue price of Rs 93. The Rs 740.1 crore IPO has received bids for 98.3 times the total shares on offer.

  • Fitch Ratings raises India's FY25 growth forecast to 7.2% from 7% in March, citing increased consumer spending and investment. The ratings agency predicts growth rates of 6.5% and 6.2%, respectively, for 2025-26 and 2026-27, growth this fiscal year.

  • Larsen & Toubro's buildings and factories vertical wins multiple orders worth Rs 1,000-2,500 crore. Orders include the construction of a super-speciality hospital for the Asian Institute of Gastroenterology and an office space in Mumbai for another client.

  • BLS E-Services surges as it inks an agreement to acquire a 55% stake in Aadifidelis Solutions and its affiliates for an enterprise value of Rs 190 crore.

  • Porinju Veliyath sells a 0.7% stake in Allcargo Gati. He now holds a 2.9% stake in the company.

  • Keshav Power, promoter of Dalmia Bharat, sells a 0.9% stake (16 lakh shares) amounting to approx Rs 300.2 crore in a block deal on Friday. Meanwhile, Dalmia Bharat Refractories picks up a stake in the company.

Riding High:

Largecap and midcap gainers today include Hindustan Aeronautics Ltd. (5,533.45, 6.4%), Avenue Supermarts Ltd. (5,039.30, 6.3%) and IDFC First Bank Ltd. (81.46, 4.4%).

Downers:

Largecap and midcap losers today include Bank of India (122.22, -2.8%), Zydus Lifesciences Ltd. (1,078.95, -2.8%) and Max Healthcare Institute Ltd. (903.05, -2.7%).

Crowd Puller Stocks

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

Top high volume gainers on BSE included MMTC Ltd. (83.83, 9.9%), Metro Brands Ltd. (1,252.75, 8.9%) and Ramkrishna Forgings Ltd. (809.30, 8.6%).

Top high volume losers on BSE were Kalpataru Projects International Ltd. (1,165, -4.5%), Gujarat Ambuja Exports Ltd. (141.81, -4.4%) and Jubilant Pharmova Ltd. (733.65, -3.0%).

Asahi India Glass Ltd. (669.55, 8.0%) was trading at 13.5 times of weekly average. Alembic Pharmaceuticals Ltd. (868, -2.3%) and Cera Sanitaryware Ltd. (8,090, 5.8%) were trading with volumes 7.5 and 7.0 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

75 stocks took off, crossing 52-week highs,

Stocks touching their year highs included - Avanti Feeds Ltd. (639.75, 7.6%), Bajaj Auto Ltd. (9,918.20, -0.4%) and Balkrishna Industries Ltd. (3,345.60, 3.2%).

20 stocks climbed above their 200 day SMA including Metro Brands Ltd. (1,252.75, 8.9%) and Kajaria Ceramics Ltd. (1,362.50, 6.1%). 10 stocks slipped below their 200 SMA including Gujarat Fluorochemicals Ltd. (3,190, -2.4%) and Alembic Pharmaceuticals Ltd. (868, -2.3%).

 
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The Baseline
14 Jun 2024
Five Interesting Stocks Today - June 13, 2024

1. KNR Constructions:

This Andhra-based construction firm has surged 58.2% in the past month. The stock got a boost after the Telugu Desam Party (TDP) won state elections with a single-party majority in Andhra Pradesh in June. TDP also won 16 seats in the Lok Sabha elections, becoming a significant part of the new NDA government at the centre. TDP leader and Chief Minister of Andhra, Chandrababu Naidu is seen as a pro-development politician, who believes in aggressive spending on new infrastructure.

In Q4FY24, the company posted operating revenue growth of 13.5% YoY to Rs 1,414 crore, beating Trendlyne’s Forecaster estimate by 15.6%. Its net profit rose 139.9% YoY to Rs 353.3 crore, surpassing estimates by 194%. Profits were on the higher side thanks to interest income received from subsidiaries.

Current order book of the company stands at Rs 6,505 crore (including two projects worth Rs 1,200 crore that the company won recently). Executive Director K. Jalandhar Reddy summarized the optimistic mood when he said, “After elections, there will be a lot of orders mainly from the highway segment”. He also highlighted that the company could receive orders worth Rs 2,000-3,000 crore in the next two months linked with the 100-day plan of the Ministry of Road, Transport and Highways post-elections. For FY25, the company is targeting an order inflow of Rs 5,000-6,000 crore.

IDBI Capital maintains a ‘Hold’ rating on the company as the brokerage expects revenue to be weak and mainly dependent on order inflows. With the main focus on highway projects, they believe that the company is looking to diversify into other segments such as metro, mining, railway and solar.

2. Raymond:

This textiles company has surged by 8.4% over the past week. This comes after its real estate arm, Raymond Realty, won two redevelopment projects in Mumbai on June 8 – residential projects in Bandra East with a revenue potential of over Rs 2,000 crore. 

This is in addition to joint development agreements that it previously signed for three projects in the Mumbai suburbs, with an estimated development value of over Rs 5,000 crore. Raymond also owns a 100-acre plot in Thane, Mumbai, with a revenue potential of over Rs 25,000 crore expected over the next few years. Due to the rise in share price, the company features in a screener of stocks with strong momentum.

The real estate business has been a clear outperformer for Raymond. During Q4FY24, the company’s net profit increased by 17.9% YoY to Rs 229.2 crore. Revenue was up 21.3% YoY, beating Trendlyne’s Forecaster estimates by 12.8%. The real estate segment led the growth, which surged 2.4x YoY during the quarter. Meanwhile, the company’s branded apparel segment rose by 23.2% YoY during Q4, and improved domestic market conditions led to a 7% YoY growth in the engineering business. Raymond plans to expand its branded apparel stores, and expects to add over 500 new stores in the next three years.

According to Amit Agarwal, the Group CFO, “The real estate market maintains an upward momentum, driven by increasing residential demand that will persist in the forthcoming quarters”. Raymond hopes to derive a significant revenue contribution (40-45%) from its real estate and engineering divisions over the next 4-5 years. In FY24, revenue contribution from the real estate segment increased to 17%, up from 13% the previous year. Meanwhile, the lifestyle business accounted for 74% of the revenue. 

The company has previously announced the demerger of its lifestyle business into a separate listed entity. The merger will result in two distinct net-debt-free companies - the existing listed company, Raymond, will deal in real estate business and engineering, while the lifestyle business will be listed as Raymond Consumer Care (RCCL). The company has already received approvals from SEBI, shareholders, and creditors. An update on the NCLT approval is awaited. RCCL is expected to be listed within the next 2-3 months, subject to this approval.

3. GAIL (India): 

This non-electrical utilities company rose by 6.7% in the past week after announcing a capex plan worth Rs 60,000 crore. Part of this is for setting up a 1,500 KTA ethane cracker project, with a product slate of various ethylene derivatives, and a greenfield petrochemicals complex in Madhya Pradesh. Commercial production at the plant is likely to start only in FY31, according to reports.

Indian oil and gas companies are expanding their petrochemicals business to meet growing demand. GAIL spent 30% of its total capex of Rs 11,426 crore in FY24 on petrochemicals and plans to spend 40-45% of its FY25 capex (Rs 11,500 crore) on petrochemicals. Rakesh Kumar Jain, Director of Finance, said, “The production of the petrochemical segment will increase in FY25, due to maintenance undertaken this year. Production will increase from 7.7 lakh tons to 8.1 lakh tons in FY25.”

In Q4FY24, the company’s profit rose 289.3% YoY to Rs 2,468.7 crore despite a 2.3% YoY fall in revenue. Profit rose on the back of decreased inventory expenses. It also beat Trendlyne Forecaster’s net profit estimate by 5.9%. The company’s turnover dropped 10% YoY mainly due to the softening of natural gas prices. But this decrease was partly offset by an increase in the volume of the petrochemicals business.

Speaking about volume guidance, Jain said, “We expect that in the coming two years, our volumes are likely to increase by 10-12 million metric standard cubic meters per day (MMSCMD) per year, so, we are expecting an average volume of 130-132 MMSCMD in FY25 and 140-142 MMSCMD in FY26.”

However, Prabhudas Lilladher maintains a ‘Sell’ call on GAIL as the brokerage believes that existing consumers (except power) already consume an optimal amount of gas, and they expect only a few new consumer additions. The company appears in a screener for stocks with increasing shareholding by mutual funds in the past quarter.

4. Cummins India:

This industrial machinery company rose by 9.1% over the past week and announced its results on May 30. The firm beat Trendlyne Forecaster estimates for Q4FY24 for revenue by 9.1% and net profit estimate by 35.2%. In Q4FY24, the company’s net profit increased by 54% YoY to Rs 537.3 crore, while its revenue increased by 19.7% YoY on the back of improving Engines and Lubricant segment revenues. It shows up in a screener for stocks with consistent high returns over five years in Nifty500.

In Q4FY24, the company's domestic powergen, distribution, and industrial vertical revenue rose by 40%, 25% and 60%, respectively. However the exports business declined due to subdued demand in Europe & Latin America, and due to geopolitical tensions in the Middle East and African regions. Regarding the exports, Ashwath Ram, Managing Director, Cummins India, said, “ Exports dropped to 18% of sales this year, with major declines in Europe (nearly halving), and in the Middle East, Africa, and Asia Pacific. No export market grew for us last year.” 

Concerns for FY25 include geopolitical crises and funding availability in African markets. The European markets are the most impacted as countries are trying to get out of internal combustion products as emission regulations grow stricter, and are preferring clean energy products. 

Aswath Ram added, “For exports, our ambition is to get back to 30-35% of our sales being exports. So, we are not just giving up on it.” On FY25 growth he added: “We think the opportunities are there for us to continue to grow at the 2x GDP level for FY25.”

The company recently started the manufacturing of new gensets complying with the Central Pollution Control Board’s CPCB IV+ emission norms, which became mandatory from June 2024 for all genset manufacturers. These gensets constituted 33% of the revenue in this quarter and grew by 25% QoQ in the genset sales mix, thanks to replacement demand. 

Sharekhan has given Cummins India a “Buy” rating, with a target price of Rs 4,200. The brokerage notes that the company is well-positioned for the transition to the new norms, with favorable long-term implications in terms of revenue and profitability. The brokerage sets a revenue/PAT CAGR of ~18%/21% over FY25-FY26E and notes that the valuations at 40x FY26E EPS might seem optically high, but they see growth tailwinds from government spending on infrastructure. Weaker exports however, remain a red flag and a number investors will need to closely track.

5. Indian Energy Exchange:

This exchange stock has risen by 10.5% over the past week, touching its 52-week high of Rs 182.6 per share today after its volumes grew 28.9% YoY to 10,633 million units (MU) in May. This was backed by a 21% YoY improvement in electricity volumes. The stock has also risen by 23.8% over the past month, helping the company to feature in a screener of stocks that outperformed their industries in the same period.

The company’s renewable energy certificates (REC) were at an all-time low price of Rs 165 each in May. This helped buyers like Distribution Companies (DISCOMS) and Captive Power Producers (CPPs) to meet their renewable purchase obligations, and voluntary customers to buy sustainable electricity at a lower rate. The company’s REC segment surged by 640.3% YoY to 1,055 MU.

IEX’s revenue grew by 15.2% YoY to Rs 149.3 crore in Q4FY24, beating Trendlyne’s Forecaster estimates by 17.8%. Its net profit increased by 9.5% YoY to Rs 96.7 crore, missing Forecaster estimates by 7.3%. The company’s revenue increased on the back of its day-ahead market (DAM) price, remaining flat at Rs 5.1 per unit which helped drive up trading on its platform. 

Satyanarayan Goel, Chairman, and Managing Director of the company said, “For FY25, Indian power sector demand is expected to grow by 8%, and in the first 45 days of this year, that demand has grown by almost 12%. This jump will help our REC segment to grow by 25-30% YoY and the green segment to increase by 50% YoY.”

Post results, Keynote Capitals maintains its ‘Under Review’ rating on the stock. The brokerage believes that despite the company’s improving business prospects, there is uncertainty related to market coupling, which could significantly impact the business's fundamentals if it occurs. Market coupling is a model currently being tested, where the buy and sell bids on all the exchanges will be aggregated, which means that there will be one price for electricity traded on all the exchanges. 

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