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30 May 2024

Market closes lower, Marksans Pharma's net profit falls 4.4% YoY to Rs 78.3 crore in Q4FY24

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.
#RBI projects real #GDP #growth at 7% in FY25, says outlook for #Indian #economy remains #bright https://t.co/o7qDSzlQIv
— Economic Times (@EconomicTimes) May 30, 2024
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.
#RRKabel Block Deal: 5% equity or 56 lakh shares change hands; TPG Asia likely sellerhttps://t.co/TgCcEPpArs
— CNBC-TV18 (@CNBCTV18Live) May 30, 2024
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.
RHI Magnesita India

Guidance for FY25
???? Overall volumes +8% with Margins at 14% -15%
????Acquired Dalmia asset volumes will +15% with margins at 12%-13%
???? No indications that Dalmia Group wants to sell its stakehttps://t.co/mh2Fts8yiK
— Nigel D'Souza (@Nigel__DSouza) May 30, 2024
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.
RITES chairman and managing director Rahul Mithal said the firm is looking to scale up the share of exports in its revenue to 20-25% by FY26.

(@narayan_subhash reports) https://t.co/ufsbL3o4Qd
— Mint (@livemint) May 30, 2024
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.
Brokerage Radar | Jefferies on Alkem Labs maintains underperform; cuts target price to Rs 4,200 from Rs 4,470@Jefferies @Alkem_Lab pic.twitter.com/zu1JWU2MwU
— ET NOW (@ETNOWlive) May 30, 2024
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%).

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.

29 May 2024

Market closes lower, Alkem Laboratories' Q4FY24 net profit rises 3x YoY to Rs 293 crore

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.
S&P revises #outlook for #India to positive, affirms #rating at BBB-https://t.co/6jlXCaqCA2
— Economic Times (@EconomicTimes) May 29, 2024
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.
ITD CEMENTATION

Margins will be around 10-11% with revenue growth of 20% in FY25

Target 9000-10000 Cr order inflow in FY25

Overseas business will increase from 10% of sales to 30% in 2-3 years

https://t.co/Rr0OTALerf
— Mangalam Maloo (@blitzkreigm) May 29, 2024
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.
RR Kabel says

Guides for FY25
???? Wire & cables +20% volumes growth
???? FMEG revenues of Rs.1000 cr
???? Margins 8%-8.25%

FMEG biz will break even in next 4-5 quarters ????

???? Will announce capex to fuel growth beyond FY25https://t.co/zGdC3Qu8aw
— Nigel D'Souza (@Nigel__DSouza) May 29, 2024
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.
One 97 Communication Ltd., #Paytm's parent, has termed the report of "talks of stake sale with billionaire #GautamAdani", as speculative. The #VijayShekhar-founded company said it is not engaging in any discussions in this regard.https://t.co/ENZa2YlHZf
— Business Today (@business_today) May 29, 2024
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.
Brokerage Radar | Jefferies on Auto Sales says,"Indian auto OEMs should report May wholesale volumes in the next few days"@Jefferies pic.twitter.com/Gfhw6dTKyR
— ET NOW (@ETNOWlive) May 29, 2024
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%).

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.

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)

28 May 2024

Market trades lower, ICICI Direct retains its 'Buy' call on Hindalco Industries

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.
#MarketsWithBS | Why is Nomura betting big on RIL, BEL, Exide, Sona BLW and Uno Minda?@Pun_ditry finds out#Nomura #markets #sharemarket #stockmarket #buzzingstocks #RIL #BEL https://t.co/uZzsAAofeQ
— Business Standard (@bsindia) May 28, 2024
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.
#SunTV #LargeTrade | 10.2 lakh shares (0.3% equity) worth ?65.4 cr change hands at ?640/sh pic.twitter.com/Hig0XohB9G
— CNBC-TV18 (@CNBCTV18Live) May 28, 2024
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.
PI Industries says

???? Expect Industry to get headwinds in next few quarters

???? FY25 Guidance ????Revenue +15% with margins around 26%

???? Pharma Business revenues will hit 1000cr in 4 years#StockFocus https://t.co/fDtLixYSWl
— Nigel D'Souza (@Nigel__DSouza) May 28, 2024
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.
India #GDP Preview: Indian economic growth is expected to remain on track in fourth quarter, despite rising at a slower pace. @PallaviNahata reports ??https://t.co/G3da47T7IL
— NDTV Profit (@NDTVProfitIndia) May 28, 2024
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.
Brokerage Radar | CLSA on Nazara Tech maintains Sell; Cuts target price to Rs 525 from Rs 570@CLSAInsights pic.twitter.com/fUkU1inlwN
— ET NOW (@ETNOWlive) May 28, 2024
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%).

27 May 2024

Market closes flat, Divi's Labs' net profit grows 67.6% YoY to Rs 538 crore in Q4FY24

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.
Goldman Sachs revised upwards its forecast for India's GDP growth for CY24 by 10 bps to 6.7% and expects the RBI to cut interest rates in the Q4CY24 / Q3FY25.

To know more, read here https://t.co/YZ8nBKzYTm @Pun_ditry #GoldmanSachs #IndianEconomy #GDP #RBI #interestrates
— Business Standard (@bsindia) May 27, 2024
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.
#4QWithCNBCTV18 | ‘Demand & pricing trends are holding up. We are in the midst of a virtuous cycle’ #DLF’s Ashok Tyagi says co expects to clock Rs 17,000 cr sales in FY25 with Rs 3,500 coming from the ‘Lux 5’ project in #Gurugram

#earnings #realestate pic.twitter.com/gVUtykYj0Y
— CNBC-TV18 (@CNBCTV18Live) May 27, 2024
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.
Expect wind installations of 4.5-5 GW in FY25 in India, says @Suzlon CFO Himanshu Mody to #NDTVProfit.

For the latest news and updates, visit: https://t.co/by4FF5o0Ew pic.twitter.com/SZr165UFRh
— NDTV Profit (@NDTVProfitIndia) May 27, 2024
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.
Hindalco says ????

Aluminum biz
???? Prices will stabilize around $2,400/tn
????Q1FY25 EBITDA/tn > Q4FY24

Copper
????Q4FY24 was exceptional, quarterly EBITDA run-rate will be 600cr

Will evaluate Hindustan Copper if it comes up for divestment ????@Hindalco_World https://t.co/uJNl52458A
— Nigel D'Souza (@Nigel__DSouza) May 27, 2024
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.
Brokerage Radar | Incred on Divis Lab upgrades to Add from Reduce; Hikes target price to Rs 4,707 from Rs 3,333@IncredMoney pic.twitter.com/aWezhv3dHt
— ET NOW (@ETNOWlive) May 27, 2024
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%).

24 May 2024

Five Interesting Stocks Today - May 24, 2024

1. Info Edge (India):

This internet software & services company has risen by 8% over the past week and touched a 52-week high of Rs 6,545 on Thursday. On May 16, Info Edge (India) reported a net profit of Rs 60.4 crore for Q4FY24, compared to a loss of Rs 272.8 crore in Q4FY23. Its revenue grew 8.7% YoY to Rs 657.4 crore, beating Trendlyne’s Forecaster estimates by 7.2%. EBITDA margins improved by 153 bps YoY to 41% during the quarter.

Info Edge’s recruitment business and cash cow (Naukri), which accounts for 73% of its revenue, grew by 3.4% YoY in Q4. Billings during the quarter were up 7% YoY. Recruitment business growth was slightly slower compared to the other segments due to a slowdown in IT hiring. Hitesh Oberoi, the Managing Director said, “FY24 was a challenging year for the overall recruitment business largely because of the slowdown in IT hiring”. However, he highlighted that there has been an increase in IT job listings and resumes being viewed by hiring managers over the last 3-4 months.

Meanwhile, during Q4FY24, the company’s non-recruitment business verticals, namely 99acres.com (real estate), Jeevansathi.com (matrimony), and Shiksha.com (education) grew by 22.5%, 29.2%, and 22.2% respectively.

In addition to the various lines of online business, the company has invested in several start-up companies. As of March 2024, Info Edge holds 13.6% and 12.7% stakes in Zomato and PB Fintech (PolicyBazaar), respectively. The management reiterated no plans to sell their holdings in these companies, given their growth prospects. Other strategic investments include Nopaperforms Solutions, Ambition Box, and AarogyaAI. The company highlighted that businesses like Ambition Box and Job Hai have begun monetizing in Q4, and have the potential to grow at a faster pace moving forward.

Post Info Edge’s results announcement, JM Financial upgraded its rating to 'Buy' and raised the target price to Rs 7,000. According to the brokerage, billings growth slowdown in the recruitment segment has bottomed out. It expects EBITDA margins to expand from 40.1% in FY24 to 44.7% in FY27.

2. Balkrishna Industries:

This off-highway tyre manufacturer hit a new 52-week high of Rs 3,174.3 on Tuesday after surging 17.5% in the past week, following the release of its Q4 and FY24 results. In Q4FY24, the company reported revenue growth of 20.2% YoY to Rs 2,852.7 crore, surpassing Trendlyne’s Forecaster estimates by 15.4%. During the same period, its net profit went up by 87.4% YoY to Rs 486.8 crore, beating estimates by 29.1%.

The revenue beat was mainly driven by a 13% volume expansion due to market share gains on a YoY basis, and partially passing higher freight tariffs (due to the Red Sea crisis) onto customers. The increase in net profit was supported by improving EBITDA margins, which grew by 460 basis points YoY to 24.9%.

Geographically, 47.1% of the company’s revenue comes from Europe, 26.8% from India, 16.9% from the Americas, and the rest from other regions. On the global front, the company has a market share of 5-6%. Balkrishna aims to increase it to around 10% in the next five years through diversification and better penetration in the OEM segment, particularly in the non-farm tyre category. Currently, sales from replacements account for 71.1% of revenue, while OEMs contribute 27%.

Joint Managing Director Rajiv Poddar said, “The company is considering price hikes in the coming quarter to counter rising raw material prices, especially in natural rubber, and freight costs.” He also emphasized that India will be a focus market for the firm due to significant growth in the replacement market.

Sharekhan upgrades Balkrishna Industries to ‘Buy’ with a target price of Rs 3,195. Analysts are upbeat as the management is looking for volume growth in FY25 with margins stable at current levels. They also expect a revival in demand and are positive about the company’s market share strategies.

3. HG Infra Engineering:

This construction & engineering stock has risen by 46.5% over the last month due to its strong Q4FY24 results on May 8 and two order wins on Wednesday. Its Q4FY24 net profit grew by 11.2% YoY to Rs 190 crore, while revenue increased by 11.1% YoY to Rs 1,713.9 crore. Its net profit missed Trendlyne’s Forecaster estimates by 10.3%, but revenue beats estimates by 12.4%. The company appears in a screener of stocks outperforming their industries in terms of price change over the past month.

HG Infra’s revenue increased on the back of its order book increasingly diversifying with the addition of solar projects to its existing portfolio of road engineering, procurement and construction (EPC), railways and water projects. Despite a rise in revenue, its order inflow for FY24 stood at Rs 4,350 crore, 45.6% lower than the management’s estimate of Rs 8,000 crore on account of a reduction in orders from the National Highways Authority of India (NHAI) due to elections.

However, the election effect is waning, as the company bagged two orders worth Rs 4,142.2 crore from Maharashtra State Road Development Corp (MSRDC) from the Maharashtra government on Tuesday. Road EPC projects accounted for 38% of the total order book of Rs 12,434 crore in FY24, while 40% originated from hybrid annuity model (HAM) road projects, 22% from railway projects, and the rest from other projects.

Post results, the company’s Chairman and Managing Director, Harendra Singh, said, “We have five solar projects which are expected to be completed by H1FY25. We expect to add new projects worth Rs 11,000-12,000 crores in road, railway, solar and water segments to sustain and scale our business. We believe that we will achieve 15-20% growth in the top line in the coming years and maintain a steady margin in the range of 15-16%.”

Post results, Axis Direct maintains its ‘Buy’ call on the stock with a target price of Rs 1,320 per share. Since the release of the analyst call on May 13, the stock has risen by 28.5%, achieving the target price. The brokerage believes that the company’s revenue will grow on the bank of a strong order book position, better order intake, diversification into related sectors as well as the government’s infrastructure focus. It expects the company’s revenue to grow at a CAGR of 15% over FY25-26.

4. Cipla:

This pharma company rose by 10.4% in the past month following multiple announcements. In the past week. The firm received final approval from the US FDA for its Lanreotide injection product, used in tumor treatment. The Lanreotide injection is a generic version of the Somatuline Depot injection. According to IQVIA, Somatuline Depot has annual sales of approximately $898 million.

Cipla also announced its Q4FY24 results this month. Its net profit improved by 80.1% YoY to Rs 939 crore, while revenue increased by 9.2% YoY. It beat Trendlyne Forecaster’s net profit estimates by 10%. The company’s EBITDA grew by 12.1% YoY. The profit growth was due to higher non-operating income as the firm received a Rs 309.7 crore dividend from one of its subsidiaries. The company also appears in a screener for stocks with annual profit growth higher than sector profit growth.

The company plans to incur Rs 1500 crore in capex in FY25. Ashish Adukia, Chief Financial Officer, said, “We expect the EBITDA margin for FY25 to increase by 200 basis points to about 24.5-25.5% compared to FY24.” The management expects to spend 6-7% of revenue in FY25 on research and development.

Meanwhile, four promoters of Cipla sold a total of 2.5% stake (aggregating to 2.1 lakh shares) in the company through open markets. Buyers include global and domestic funds such as ICICI Prudential Mutual Fund, Aditya Birla Mutual Fund, Axis Mutual Fund, Societe Generale, and Morgan Stanley Asia.

Axis Direct maintains a ‘Buy’ call on Cipla due to its better-than-expected results from business in the US. The brokerage believes results were driven by more US distributors buying manufactured drugs from India, a shortage of drugs in a few segments and the launch of products like gSynbicort and Peptide with a market size of $300-400 million.

5. PVR INOX:

This movies & entertainment company declined by 1.4% after it announced its results on May 14. The firm missed Trendlyne Forecaster revenue estimates for Q4FY24 by 29.1% and the net profit estimate by 68.3%. The company’s net loss reduced by 61.2% YoY to Rs 219.8 crore on the back of a 4.9% decline in movie exhibition costs. The stock shows up in a screener for stocks with low PE.

The company’s customer footfall declined by 10.7% QoQ to 32.6 million in Q4FY24 on the back of fewer movie releases and promotional offers. Analysts suggest that the upcoming 2024 general elections and T20 Cricket World Cup may exert pressure on the movie pipeline for Q1FY25, potentially resulting in decreased occupancy levels.

The company’s management anticipates improvements in revenues and costs in FY25. But the effect of streaming platforms on theatre footfalls is a factor that the management does not have a clear answer for. The company plans to reduce losses by cutting annual capital spending, and is exploring options like franchising for its outlets..

The company’s management anticipates a reduction of approximately 25% in total capital expenditure for FY25 compared to the previous year, as it rolls out a new screen portfolio, where its landlord partners will co-invest for most of the screen growth.

Sanjeev Kumar Bijli, Executive Director of the company, said that in FY24 PVR Inox exited 85 underperforming screens and are going to shut down about 70 underperforming screens in FY25. He adds “We will be very selective in adding new cinemas and plan to open about 120 new streams in FY 25, prioritizing expansion efforts in South India.”

The company is prioritizing the southern region due to the considerable success of its new program "PVR passport," which offers customers the opportunity to watch four movies per month at PVR INOX theaters for just Rs 87 per ticket. Southern enrollments in PVR passport lead at 35%, followed closely by the North and West regions at approximately 33% each.

Motilal Oswal has retained its "Neutral" rating on PVR INOX with a price target of Rs 1,400. The brokerage says that maintaining occupancy and traction in ad revenues amid an increasing threat from deep-pocketed OTT players is key. The brokerage values PVR INOX at 13x FY26E EV/EBITDA to arrive at a TP of Rs 1,400.

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

24 May 2024

Market closes flat, InterGlobe Aviation's net profit rises by 106.1% YoY to Rs 1,894.8 crore in Q4