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Trendlyne Marketwatch
Trendlyne Marketwatch
23 May 2024
Market closes higher, Garden Reach Shipbuilders' net profit grows by 101.8% YoY to Rs 111.6 crore in Q4
By Trendlyne Analysis

Nifty 50 closed at 22,967.65 (369.9, 1.6%), BSE Sensex closed at 75,418.04 (1197.0, 1.6%) while the broader Nifty 500 closed at 21,489.55 (251.8, 1.2%). Market breadth is in the red. Of the 2,119 stocks traded today, 938 were on the uptick, and 1,137 were down.

Indian indices extended their gains from the afternoon session and closed at their record highs. The Indian volatility index, Nifty VIX, fell 0.4% and closed at 21.4 points. Minda Corp closed lower after its net profit plunged 42% YoY to Rs 70.8 crore in Q4FY24, due to higher raw materials, employee benefits, and finance costs.

Nifty Smallcap 100 and Nifty Midcap 100 closed in the green but underperformed the benchmark index. Nifty PSU Bank and Nifty Infra closed higher than their Wednesday close. According to Trendlyne’s sector dashboard, Commercial Services & Supplies emerged as the best-performing sector of the day, with a rise of 4.3%.

Major European indices trade in the green, except for the UK’s FTSE 100 index trading flat. However, Asian indices closed mixed on a volatile day of trade. US index futures trade in the green, indicating a positive start to the trading session. Brent crude oil futures trade in the green after falling 1% on Wednesday.

  • Money flow index (MFI) indicates that stocks like Jupiter Wagons, ABB India, PNC Infratech, and Hindustan Zinc are in the overbought zone.

  • Taj GVK Hotels & Resorts' Q4FY24 net profit rises 79% YoY to Rs 25.8 crore, helped by lower expenses. Revenue increases 11.7% YoY to Rs 115.8 crore during the quarter. The company appears in a screener of stocks near their 52-week highs.

  • GPT Infraprojects surges as it wins an order worth Rs 554.9 crore from Rail Vikas Nigam for various construction work.

  • Garden Reach Shipbuilders & Engineers surges to its all-time high of Rs 1,424.8 per share as its net profit grows by 101.8% YoY to Rs 111.6 crore in Q4FY24. Revenue rises by 62.7% YoY to Rs 1,091.6 crore. It features in a screener of stocks with increasing net profit for the past four quarters.

  • Reports suggest that 4.1 crore shares (7% equity) of Star Health and Allied Insurance, worth approx. Rs 2,200 crore change hands through block deals. FDI investors, Apis Partners, Madison (MIO), and ROC Capital are the likely sellers in the transaction.

  • Awfis Space Solutions' Rs 598.9 crore IPO gets bids for 3.4X the available 86.3 lakh shares on offer on the second day of bidding. The retail investor quota gets bids for 10.3X the available 15.6 lakh shares on offer.

  • Aether Industries rises as the Gujarat Pollution Control Board (GPCB) revokes the closure order for its manufacturing facility II, after partially halting operations following a fire incident on November 29, 2023. The company can now resume at 75% capacity.

  • Oil India signs an agreement with Numaligarh Refinery to transport additional petroleum products via the NSP (Numaligarh-Siliguri product pipeline) following the commissioning of the Numaligarh Refinery Expansion Project.

  • Nifty 50 hits an all-time high of 22,880.6 today. BSE Sensex also reaches a record high of 75,124.3.

  • Auto stocks like Eicher Motors, Mahindra & Mahindra, Maruti Suzuki India, and Samvardhana Motherson International are rising in trade. The broader sectoral index Nifty Auto hits an all-time high of 23,676.9 today.

  • Torrent Power's Q4FY24 net profit drops 7.6% YoY to Rs 447 crore due to an increase in global fuel prices. However, revenue increases 8.1% YoY to Rs 6,528.5 crore during the quarter. The company appears in a screener of stocks with FII / FPI or institutions increasing their shareholding.

  • Power Grid Corp falls sharply as its net profit declines by 3.6% YoY to Rs 4,166.3 crore in Q4FY24. Revenue falls by 2% YoY to Rs 12,305.4 crore due to a reduction in the transmission segment. The company's board approves a line of credit of Rs 5,000 crore from a consortium of banks.

  • Surendran Chemmenkotil, the CEO of Metropolis Healthcare, highlights the company’s plan to increase its presence into 1,000 towns, with a major focus on northern and eastern markets, over the next two years. He adds that the firm is looking for merger & acquisition opportunities, and aims to set up 25 new labs in FY25.

  • KPI Green Energy's board approves the sub-division of existing equity shares in the proportion of 1:2. The record date for the purpose of the split will be intimated in due course.

  • HEG falls as its board approves the demerger of its graphite business into a new company (to be incorporated) to create two independent entities addressing separate growth prospects. Post-demerger, HEG will consolidate Bhilwara Energy with itself, and the existing company will become a platform for green energy businesses.

  • FSN E-Commerce Ventures' (Nykaa) Q4FY24 net profit jumps 298% YoY to Rs 9 crore, helped by lower inventory and raw material costs. Revenue increases 28% YoY to Rs 1,668 crore during the quarter. The company appears in a screener of stocks where mutual funds have increased their holding over the past two months.

  • Nomura raises the target price on Cipla to Rs 1,535, while it maintains its ’Neutral’ rating. The brokerage believes that the US FDA approval for the therapeutic equivalent version of Somatuline will help gain an additional market share. It also notes the growth in the company’s overall volumes by 10-15% YoY.

  • PSU banks like Indian Bank, Indian Overseas Bank, Bank of Maharashtra and Bank of Baroda rise more than 2% in trade. All constituents of the broader Nifty PSU Bank index are also trading in the green.

  • Godrej Properties sells around 650 homes and achieves a booking value of over Rs 2,000 crore through the launch of its project Godrej Jardinia in Noida.

  • PG Electroplast surges to its all-time high of Rs 2,600 as its net profit grows by 73.2% YoY to Rs 69.6 crore in Q4FY24, helped by returns from sales of inventory. Revenue increases by 30.2% YoY to Rs 1,080 crore, due to improvements in the products, plastic, and electronics segments. It shows up in a screener of stocks with zero promoter pledge.

  • Oravel Stays (OYO) withdraws its draft papers filed with the Securities Exchange Board for an initial public offer (IPO). This is the second time in nearly three years the company has pulled its IPO plans.

  • Go Digit General Insurance’s shares debut on the bourses at a 5.2% premium to the issue price of Rs 272. The Rs 2,615 crore IPO has received bids for 9.6 times the total shares on offer.

  • Minda Corp is falling as its net profit plunges 42% YoY to Rs 70.8 crore in Q4FY24, due to higher raw materials, employee benefits, and finance costs. However, revenue grows by 13.7% YoY to Rs 1,224.8 crore, driven by improvements in the two-wheeler, passenger vehicles, and three-wheeler segments. It appears in a screener of stocks where insiders sold their shareholding.

  • Keystone Realtors' board approves raising funds through a qualified institutional placement (QIP). The board has set the floor price at Rs 682.5 per share for the QIP and aims to raise around Rs 1,000 crore.

  • Jubilant Foodworks rises sharply as its net profit grows 7.3x YoY to Rs 207.5 crore in Q4FY24, helped by an exceptional gain of Rs 170.2 crore. Revenue increases by 23.6% YoY to Rs 1,594.1 crore, driven by improvements in the Indian and International businesses. It features in a screener of stocks with increasing revenue for the past four quarters.

  • Nifty 50 was trading at 22,596.85 (-1.0, 0%), BSE Sensex was trading at 74,253.53 (32.5, 0.0%) while the broader Nifty 500 was trading at 21,272.65 (34.9, 0.2%).

  • Market breadth is ticking up strongly. Of the 1,857 stocks traded today, 1,310 were on the uptick, and 497 were down.

Riding High:

Largecap and midcap gainers today include UNO Minda Ltd. (829.95, 9.5%), Adani Enterprises Ltd. (3,387.30, 7.8%) and Indian Railway Finance Corporation Ltd. (186.50, 6.2%).

Downers:

Largecap and midcap losers today include Deepak Nitrite Ltd. (2,334.90, -5.2%), Lupin Ltd. (1,632.65, -4.9%) and Max Healthcare Institute Ltd. (803.05, -4.2%).

Crowd Puller Stocks

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

Top high volume gainers on BSE included UNO Minda Ltd. (829.95, 9.5%), Adani Enterprises Ltd. (3,387.30, 7.8%) and PNB Housing Finance Ltd. (798.65, 7.2%).

Top high volume losers on BSE were HEG Ltd. (2,247.50, -16.4%), GMM Pfaudler Ltd. (1,323.05, -5.9%) and Deepak Nitrite Ltd. (2,334.90, -5.2%).

Gland Pharma Ltd. (1,881.85, 5.0%) was trading at 11.7 times of weekly average. Jubilant Foodworks Ltd. (475, -1.0%) and Star Health and Allied Insurance Company Ltd. (548.85, 1.7%) were trading with volumes 7.8 and 7.3 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

39 stocks took off, crossing 52 week highs,

Stocks touching their year highs included - Adani Ports & Special Economic Zone Ltd. (1,443.35, 4.7%), Adani Power Ltd. (711.35, 2.9%) and Ashok Leyland Ltd. (212.35, 2.0%).

14 stocks climbed above their 200 day SMA including JK Paper Ltd. (379.80, 2.9%) and Mahindra Holidays & Resorts India Ltd. (410, 2.0%). 6 stocks slipped below their 200 SMA including Balaji Amines Ltd. (2,213.35, -1.1%) and 3M India Ltd. (30,900, -0.9%).

 
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The Baseline
22 May 2024
Should we worry about foreign investors exiting markets?| Screener: stocks where FIIs have cut stake
By Shreesh Biradar

The election this year has come with much nail-biting. It’s not just political parties that are having the jitters – investors are also facing sharp market swings and volatility. The Nifty VIX rose to a 15-month high of 22.3 points as of Tuesday, while the Nifty 50 has been range-bound since the start of the polling season.

Foreign institutional investors in particular have grown wary of the volatility. They are at their most pessimistic level since 2012, shorting Indian stocks significantly, and have withdrawn around $3.5 billion from Indian equities in May alone. For now, foreign outflows have not dented valuations much, as inflows from domestic institutions have jumped.

Rising bond yields in the US have also contributed to FII withdrawal. Bond yields are up as the timing of likely rate cuts by the US Fed keeps getting postponed, shifting from June-July to September-October. And despite tensions between the US and China, cheaper valuations of Chinese and Hong Kong equities (currently trading at 10 PE) have been tempting foreign investors.

Mihir Vora, Chief Investment Officer of Trust Mutual Fund, says, “ FII outflows are on account of election uncertainty. India in the longer term will see FII inflows, as it is one of the fastest growing countries among large economies”. 

Historically, FIIs have returned to Indian markets post elections. Will this year be different?

In this week’s Analyticks:

  • FIIs exit stocks: How is the exodus impacting Indian markets?
  • Screener: Stocks where FII/FPIs are decreasing shareholding, with falling stock prices over the past month

Let’s get into it.

Election-led volatility, rising US bond yields trigger FII outflows

Volatility – a good measure of risk in the market – has risen significantly over the past month for India. But this is not the first time an election has driven the Nifty VIX up. The volatility index shot up during the 2014 election (a change election), to 38 points. In 2019, when the BJP won reelection, it rose to 29 points. Comparatively, the current rise of the Nifty VIX is on the lower side. 

But foreign investors hate uncertainty, and net outflows are likely to persist until the results are announced. If a single party wins, FIIs might return quickly to Indian equities.

Nifty VIX on the lower side so far, compared to the past two general elections

The strengthening US dollar has also fuelled FII outflows since a depreciating rupee eats into investor gains. Another reason for the outflow has been rising bond yields in the US. 

Sticky inflation and a strong American job market have put the US Fed in a tight spot as far as cutting interest rates is concerned. Rate cuts are now expected only in September, and the expected rate cut size has gone down from 90 bps at the start of 2024 to around 44 bpsnow. As a result, US treasury yields shot up from 3.8% at the start of 2024 to 4.7% by the end of April. The rising yield has attracted foreign investors.

Historically, Indian indices fall with a rise in US treasury bond yields, due to FII outflows. Recent DII inflows have buffered the fall, as domestic institutions invested Rs 2,50,903 crores from April 2023 to April 2024.

Rising US bond yields have triggered FII selling

Largecaps impacted by FII outflow, DIIs protect the fall

Since the start of 2024, FIIs have withdrawn nearly Rs 84,318 crore worth of equity from the Indian market. In the same period, DIIs invested around Rs 1,52,620 crore.

DIIs sustain Indian markets amid FII outflows in the past 12 months

The Nifty 50 has risen 3.3% from the start of 2024, while Nifty Midcap 100 and Nifty Smallcap 100 have gained 11.5% and 11% respectively. FII money has mainly been in largecap and midcap stocks, while DIIs have invested in midcap and smallcap.

As a result, the FII outflow from largecaps has been cushioned only a bit by DIIs. The midcap and smallcap rallies have been backed by DII inflows, despite concerns about their expensive valuations.

Telecommunication and consumer services sectors get maximum inflows, while FMCG and financial services see an exodus.

The telecom services sector saw the highest inflows from FIIs in 2024. The inflows were driven by Vodafone Idea’s FPO. The Vodafone issue saw FIIs buying 65% (Rs 11,700 crore) of the Rs 18,000 crore FPO.  The sector also saw FII investments in Bharti Airtel, which has gained significant market share in the past year, even as it raised overall tariff rates.

The capital goods (general industrial) sector saw investments in the defence industries. The defence industry was aided by large orders from the government – Indian defence firms won orders of more than $7 billion in FY24. Capital goods firms involved in infrastructure and real estate also saw increased volumes, due to higher election spending by the government and an uptick in real estate activity.

The telecommunication sector has led FPI inflows since January 2024

The financial services sector on the other hand, saw the highest selling in 2024. Most of the selling came in private banks and NBFCs, which have faced liquidity concerns and stiff competition from public sector banks. HDFC Bank – usually an FII favourite – saw the biggest exodus. HDFC Bank’s margins are under pressure, while merger woes continue. 

The FMCG sector also saw pressure as rural consumption slowed. The premiumization of products led to lower offtake in price-sensitive rural geography. However, higher consumption in urban areas has offset this a bit.

FIIs may choose India over China in the long run

Chinese stocks are now at at an attractive valuation compared to India. The government stimulus in China (around $138 billion) and the recent pick-up in industrial production have driven foreign inflows up. But the economic woes in the country and the rising threat of a US-China trade war may dent enthusiasm for the Chinese market in the longer term.

The International Monetary Fund (IMF) has guided India’s GDP growth of 6.8% for 2024, which is the highest among emerging economies. In comparison, China is expected to slow down to 4.6% GDP growth in 2024, from 5.2% in 2023. India’s inflation, currently at 4.8%, is also predicted to decline post-monsoons due to an expected fall in vegetable prices. 

While most emerging economies are struggling with price rises, slowdowns and geo-political tensions, India has so far not seen a major dent in growth. Increased tariffs on Chinese goods from the US and EU have impacted its growth prospects, and India is being seen by the world as a good alternative. 

In this scenario, current FII outflows are not a big worry. DIIs have been actively investing without any signs of slowing down. Foreign investors are expected to return in two phases, first, post-election, and then after the Fed starts rate cuts in the second half of 2024. Until then, DIIs will run the show.

Screener: FII/FPI decreasing shareholding QoQ with falling stock prices over the past month

Banking and finance stocks see highest FII outflows in Q4FY24

As the shareholding data for the final quarter of FY24 has come out, we take a look at stocks that saw a decline in their foreign institutional investor (FII) holdings during the quarter. This screener shows stocks where FII decreased their stake QoQ, where share prices declined over the past month.

The screener is dominated by stocks from the banking & finance, software & services, textiles, apparels & accessories and diversified consumer services sectors. Major stocks that appear in the screener are Aster DM Healthcare, Route Mobile, Kalyan Jewellers, PVR INOX, HDFC Bank, Star Health and Allied Insurance, Indus Towers and Indiabulls Housing Finance.

Aster DM Healthcare’s FII holding contracted the most by 7.5 percentage points in Q4FY24, while its stock price also plunged by 30.8% over the past month. The fall in stock price is mainly due to the company giving out a special dividend of Rs 118 per share on April 23.  Olympus Capital Asia Investments was the largest seller in the healthcare stock with a sale of an 8.9% stake in the company. The sold shares were picked up by mutual funds like Nippon Life India Trustee Ltd-A/C Nippon India Small Cap Fund (2.1% stake) and Franklin India Smaller Companies Fund (0.6% stake), and retail investors (1% stake).

FIIs sold a 5% stake in PVR INOX in Q4FY24, the stock has also fallen 5.3% over the past month. Funds like Plenty Private Equity Fund I and Multiples Private Equity Fund II LLP, among others sold a total of 2.3% stake in the movies & entertainment company. The sold stake was picked up by mutual funds like Nippon Life India Trustee Ltd-A/C Nippon India Mul (1.5% stake), HDFC Trustee Company Ltd. A/C Hdfc Capital Builder (3.8% stake and ICICI Prudential Multicap Fund (1.4% stake). 

You can find more screeners here.


 
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The Baseline
22 May 2024
Chart of the Week: 13 of the 15 stocks constituting the Nifty Metal index trade near all-time highs
By Satyam Kumar

A week ago, US President Joe Biden imposed a new tariff hike on Chinese products, which is projected to affect around $18 billion in annual imports from China. He accused China of heavily subsidising products, causing Chinese companies to produce more than what the market can absorb and then dumping the excess at unfairly low prices. He said, “When you follow tactics like this, you’re not competing. It’s not competition, it’s cheating.”

Since the tariff hike on May 14, the Nifty Metal index as of May 22 has posted a sharp rally of 9.1%, as Indian exporters stand to gain from a fairer playing field. However, experts caution about US tariffs diverting the dumping of Chinese goods to India.

In this edition of Chart of the Week, we will be looking at the performance of India’s metal index, Nifty Metal, over the past year. As of May 22, the index has risen 76.6%, outperforming the benchmark Nifty 50, which has increased by 24.1%. This rise is mainly due to quick government intervention against Chinese dumping and surging commodity prices globally.

Hindustan Zinc and Vedanta drove index gains in the past quarter

In the past quarter, the metal index rose 24.4%, with approximately 70% of the gains driven by Vedanta and its subsidiary Hindustan Zinc. Since March 28, 2024, Vedanta and Hindustan Zinc have surged by 81% and 154%, respectively. This rally can be attributed to clarifications on debt distribution post-demerger and rising prices of base metals such as zinc, lead and silver.

On September 29, 2023, Vedanta's Chairman, Anil Agarwal, announced the creation of independent verticals through the demerger of Vedanta and Hindustan Zinc. He expects the demerger to be completed by the end of this year. The company also clarified that debt will be divided among demerged entities based on the ratio of assets allocated. In Q4FY24, the company reduced its debt by 10% QoQ to Rs 56,338 crore.

Hindustan Copper is the best-performing stock in the index, with gains of 299% in the past year. The company's shares have consistently risen in line with increased demand and movements in copper prices. Copper, an essential base metal, plays a pivotal role in the energy transition ecosystem, serving as a key component in manufacturing electric vehicles, power grids, and wind turbines. Recently, speculations of a shortage fueled by talks of output cuts by smelters have led copper prices to surge by over 25% since the start of the year.

Commodity trading company Adani Enterprises also gained 59.4% in the past year. On May 22, the company surged 18.9% as the conglomerate received a clean chit from the Supreme Court of India regarding the Hindenburg case. The apex court appointed a six-member committee following allegations of stock manipulation and accounting fraud by U.S.-based short-seller Hindenburg Research.

Selling by FPIs led index to decline in the Sept-Oct 2023 period

Among all the sectors, the metals and mining sector saw the highest FPI outflow of Rs 8,531 crore in FY24. Companies faced major hurdles due to the dumping of steel at cheaper rates and sub-standard imports from China. Between April and July 2023, steel imports from China to India rose 62% YoY, leading to a significant sell-off by foreign portfolio investors (FPI) of Rs 12,009 crore in August and September last year.

In response, the Indian government imposed a five-year anti-dumping duty on specific types of Chinese steel in September 2023. This tax, levied on imported goods priced below fair market value, aims to curb Chinese imports. The industry is also expected to address production gaps in 2024, supported by policy reforms, incentives, and expansion plans by industry giants such as Tata Steel, Vedanta, and JSW Steel.

Expanding manufacturing PMI boosts outlook for the metal sector

Manufacturing activity, which is indicated by the Purchasing Managers’ Index (PMI), is said to be expanding when it is higher than 50. The PMI for India has been above 50 for all of the past year, signifying robust growth in the manufacturing space. Rising PMI is often directly correlated to the higher demand for metals. On April 1, the metal index rose 3.7% after both the US and China posted expansion in their manufacturing activity in March 2024.

The US saw its manufacturing activity expand in March 2024 as it posted a PMI of 50.3 for the first time since September 2022. Although this figure is just above the threshold of 50, which separates expansion from contraction (PMI below 50), it ended a 16-month streak of shrinking activity. 

Similarly, China's manufacturing activity expanded in March for the first time since September 2023, as its manufacturing PMI rose to 50.8 from 49.1 in February. The data offered some relief to China’s policymakers, even as a crisis in the property sector remains a drag on the economy.

Higher steel prices & anti-dumping duty help steel makers

In November 2023, the metal index posted a monthly gain of 8.8%. This rise came after steel-producing constituents witnessed a significant uptick in their share prices as they benefitted from the surging steel prices. This rise in steel prices was due to a rapid decline in inventories and a recovery in end-consumer demand. Since November 2023, companies like Steel Authority of India (SAIL), Tata Steel and JSW Steel have risen 110.3%, 49.5% and 27.5% respectively.

Another factor that is playing in their favour is the higher tariff imposed by governments across the globe to curb Chinese dumping. India saw a 62% rise in steel imports from China to India between April and July 2023, compared to the same period last year. The Indian government imposed an anti-dumping duty of $613 per tonne on flat base steel wheels from China for five years. Similarly, the US government on May 14 raised tariffs on some steel and aluminium products to 25%, citing China's "unfair" policies that were harming workers and businesses in the US. The rising anti-China mood in the commodity market has boosted Indian metal stocks, a trend that is likely to continue in the coming quarters.

 
Trendlyne Marketwatch
Trendlyne Marketwatch
22 May 2024
Market closes higher, Hitachi Energy's net profit surges 123.7% YoY to Rs 113.7 crore in Q4
By Trendlyne Analysis

Nifty 50 closed at 22,597.80 (68.8, 0.3%), BSE Sensex closed at 74,221.06 (267.8, 0.4%) while the broader Nifty 500 closed at 21,237.75 (50.1, 0.2%). Of the 2,120 stocks traded today, 1,016 were gainers and 1,058 were losers.

Indian indices extended their gains from the afternoon session and closed in the green. The Indian volatility index, Nifty VIX, fell 1.6% and closed at 21.5 points. JK Tyre & Industries closed sharply higher after its Q4FY24 net profit rose 55.4% YoY to Rs 175 crore, due to a Rs 133.4 crore return from inventories and lower finance costs.

Nifty Smallcap 100 closed in the red, despite the benchmark index closing in the green. Nifty Midcap 100 closed higher but underperformed the Nifty 50. Nifty IT and Nifty FMCG closed higher than their Tuesday close. According to Trendlyne’s sector dashboard, Telecommunications Equipment emerged as the best-performing sector of the day, with a rise of 2.2%.

Major Asian indices closed flat or lower, except for India’s BSE Sensex closing higher. European indices also traded flat or lower, taking cues from Asian indices. US index futures traded marginally lower, indicating a cautious start to the trading session. Brent crude oil futures traded in the red after falling 1.4% on a volatile day on Tuesday.

  • Relative strength index (RSI) indicates that stocks like Balkrishna Industries, Hindustan Zinc, Havells India and Siemens are in the overbought zone.

  • SpiceJet rises as it seeks a refund of Rs 450 crore out of the Rs 730 crore it previously paid to former promoter Kalanithi Maran and his firm, KAL Airways, following the Delhi High Court’s order on May 17.

  • KR Choksey downgrades Tata Motors to 'Accumulate' from 'Buy' with a lower target price of Rs 1,043 per share. This indicates a potential upside of 10.1%. The brokerage expects a near-term slowdown due to subdued growth in the domestic PV and CV sectors amid industry obstacles. It projects the company's revenue to grow at a CAGR of 15.5% over FY25-26.

  • Indian Bank's board approves raising Rs 5,000 crore via qualified institutional placement, follow-up public offer, or rights issue. The board also approves raising Rs 2,000 crore by issuing perpetual bonds and Rs 5,000 crore through long-term infrastructure bonds.

  • IREDA plans to launch an FPO (follow-on public offer) this year to capitalise on rising financing opportunities in the energy transition space and enhance the company's growth.

  • M&M Financial Services rises as it receives a 'Corporate Agent' certification from the IRDAI. This will help the company to sell life, health and general insurance.

  • Awfis Space Solutions' Rs 598.9 crore IPO gets bids for 1X the available 86.3 lakh shares on offer on the first day of bidding. The retail investor quota gets bids for 4X the available 15.6 lakh shares on offer.

  • Hitachi Energy India's net profit surges 123.7% YoY to Rs 113.7 crore in Q4FY24, beating Forecaster estimates by 89.2%. Revenue grows by 27.1% YoY to Rs 1,695.3 crore helped by an improvement in order inflow from exports. It shows up in a screener of stocks with more than 20% rise in the past month.

  • K Natarajan, MD and CEO of Galaxy Surfactants, highlights the company’s target to achieve volume growth of 6-8% and EBITDA/mt of around Rs 20,500-21,500 in FY25. He expects demand recovery in the US and Europe.

  • Strides Pharma gets US FDA approval for Sucralfate Oral Suspension, marking the first Indian approval for this complex formulation. It is a therapeutic equivalent version of Carafate, used to treat diseases in the gastrointestinal tract, and has a market size of $124 million.

  • Metropolis Healthcare's net profit rises 9% YoY to Rs 36.5 crore in Q4FY24. Revenue increases 17% YoY to Rs 331 crore during the quarter, driven by strong growth in the B2C segment, and the Mumbai market. The company features in a screener of stocks with new 52-week highs today.

  • Granules India's promoter, Krishna Prasad Chigurupati, sells a 3.1% stake (75 lakh equity shares) in the company through a block deal.

  • Jefferies notes the moderation in spending for the credit card industry in April. The brokerage highlights that SBI Cards, Axis Bank, ICICI Bank, and Kotak Mahindra Bank have witnessed a marginal MoM rise in spending share, while that of HDFC Bank and IndusInd Bank fell.

  • Awfis Space Solutions raises Rs 268.6 crore from anchor investors ahead of its IPO by allotting 70.1 lakh shares at Rs 383 each. Investors include Ashoka Whiteoak ICAV, HDFC Mutual Fund, ICICI Prudential Mutual Fund, Nippon Life India, Axis Mutual Fund, Motilal Oswal MF, and Edelweiss.

  • One97 Communications' revenue declines by 2.7% YoY to Rs 2,398.8 crore in Q4FY24 due to disruptions in the payments business caused by the RBI ban. Net loss expands 3.3x to Rs 549.6 crore caused by higher employee benefits expenses. It features in a screener of stocks underperforming their industries in the last quarter.

  • JK Tyre's Q4FY24 net profit rises 55.4% YoY to Rs 175 crore, due to a Rs 133.4 crore return from inventories and lower finance costs. Revenue increases 1.8% YoY to Rs 3,698.5 crore during the quarter. The company features in a screener for strong performer, under radar stocks (DVM).

  • Bhanu Chopra, Managing Director of RateGain Travel Tech, expects organic growth at 20% in FY25, compared to over 30% in FY24. He adds that the company targets to double its revenue to Rs 2,000 crore in the next few years. Chopra adds that RateGain aims to improve EBITDA margins by 100-200 bps.

  • Cipla gets US FDA approval for its abbreviated new drug application for Lanreotide Injection. It is a therapeutic equivalent version of Somatuline and is used for the treatment of patients with acromegaly and gastroenteropancreatic neuroendocrine tumors. Somatuline has an annual market size of $898 million.

  • HG Infra Engineering surges as it wins two orders worth Rs 4,142.2 crore from Maharashtra State Road Development Corp to construct expressways.

  • Suzlon Energy rises sharply as it bags an order to supply 134 wind turbines with a rated capacity of 3 MW each for the development of a 402 MW wind energy project by Juniper Green Energy in Rajasthan.

  • Reports suggest that 2.2 crore shares (3.5% equity) of Apollo Tyres, worth approx over Rs 1,000 crore, change hands in a block deal. Private equity firm Warburg Pincus is a likely seller in this transaction.

  • Anil Kumar Goel sells a 0.7% stake in GRP for approx Rs 8.3 crore in a bulk deal on Tuesday.

  • GAIL (India) to reportedly invest Rs 50,000 crore to build a 1.5 million tonnes per annum ethane cracking unit in Madhya Pradesh.

  • PNC Infratech surges to its all-time high of Rs 485 per share as it emerges as the lowest bidder of Rs 4,994 crore for two road projects in an auction held by the Maharashtra State Road Development Corporation (MSRDC). The projects include the construction of an access-controlled ring road in Pune and an access-controlled expressway connector from Jalna to Nanded.

  • Bharat Heavy Electricals falls sharply as its net profit declines by 25.6% YoY to Rs 489.6 crore in Q4FY24. Revenue grows by 0.9% YoY to Rs 8,416.8 crore due to an increase in the industry segment. It appears in a screener of stocks where mutual funds decreased their shareholding in the last quarter.

Riding High:

Largecap and midcap gainers today include General Insurance Corporation of India (379.30, 10.0%), Macrotech Developers Ltd. (1,312.60, 5.6%) and Solar Industries India Ltd. (9,945.90, 5.3%).

Downers:

Largecap and midcap losers today include Bharat Heavy Electricals Ltd. (301.95, -5.4%), Linde India Ltd. (9,283.55, -4.2%) and NMDC Ltd. (273.20, -3.2%).

Volume Rockets

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

Top high volume gainers on BSE included PNC Infratech Ltd. (517.60, 13.1%), General Insurance Corporation of India (379.30, 10.0%) and Finolex Cables Ltd. (1,159.60, 9.6%).

Top high volume losers on BSE were Gujarat State Fertilizer & Chemicals Ltd. (221.55, -8.2%), Global Health Ltd. (1240.45, -7.1%) and Bharat Heavy Electricals Ltd. (301.95, -5.4%).

Sheela Foam Ltd. (924.95, 0.1%) was trading at 15.2 times of weekly average. Metropolis Healthcare Ltd. (1956.05, 2.8%) and KNR Constructions Ltd. (276, 5.4%) were trading with volumes 12.6 and 12.3 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

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

Stocks touching their year highs included - Adani Power Ltd. (691.45, 1.7%), Aurobindo Pharma Ltd. (1,222.75, 0.4%) and Bharat Electronics Ltd. (283.60, 3.5%).

Stock making new 52-week lows included - CCL Products India Ltd. (565.10, 2.0%).

13 stocks climbed above their 200 day SMA including KNR Constructions Ltd. (276, 5.4%) and Vinati Organics Ltd. (1,766, 3.4%). 13 stocks slipped below their 200 SMA including AIA Engineering Ltd. (3,650, -2.5%) and Orient Electric Ltd. (216.50, -2.3%).

 
Trendlyne Marketwatch
Trendlyne Marketwatch
21 May 2024, 03:51PM
Market closes flat, Man Industries (India) wins new export orders worth Rs 505 crore

Nifty 50 closed at 22,529.05 (27.1, 0.1%), BSE Sensex closed at 73,953.31 (-52.6, -0.1%) while the broader Nifty 500 closed at 21,187.65 (43.2, 0.2%). Market breadth is in the red. Of the 2,176 stocks traded today, 799 were gainers and 1,340 were losers.

Indian indices pared the gains from the afternoon session and closed flat. The volatility index, Nifty VIX, rose by 6.2% and closed at 21.8 points. Biocon's arm Biocon Biologics gets US FDA approval for Yesafili, an interchangeable biosimilar to Aflibercept, used to treat different types of ophthalmology conditions. Aflibercept has an annual market size of $5.9 billion.

Nifty Smallcap 100 closed lower, while Nifty Midcap 100 closed in the green with the benchmark index closing flat. Nifty Metal and Nifty Media closed higher than Friday’s closing level. According to Trendlyne’s sector dashboard, metal & mining emerged as the top-performing sector of the day, with a rise of over 5.2%. 

Most European indices trade in the red. US indices futures trade flat, indicating a cautious start. Post tariff increases by the US government on Chinese products, US Treasury Secretary Janet Yellen stated that the US and Europe need to stop intake of China’s excess goods.

  • Astral sees a short buildup in its May 30 future series as its open interest rises 23.8% with a put-call ratio of 0.4.

  • Man Industries (India) wins new export orders worth Rs 505 crore. Its total unexecuted order book stands at approx Rs 2,100 crore to be executed in the next six to eight months.

  • Deepak Nitrite's net profit rises 8.5% YoY to Rs 254 crore in Q4FY24. Revenue increases 8.4% YoY to Rs 2,126 crore during the quarter, due to an improvement in the phenolics segment. The company features in a screener of stocks near their 52-week highs.

  • Aether Industries falls sharply as it posts a net loss of Rs 1.4 crore in Q4FY24 compared to a net profit of Rs 37.6 crore in Q4FY23, due to higher employee benefits and finance costs. Revenue declines by 30% YoY to Rs 129.1 crore, caused by a reduction in the large scale manufacturing, contract manufacturing, and contract research and manufacturing segments. It shows up in a screener of stocks underperforming their industries in the past quarter.

  • CB Ananthakrishnan, Director-Finance and CFO of Hindustan Aeronautics says, the company targets revenue growth of 15% in the next 2-3 years. He expects an order book of around Rs 1.2 lakh crore in FY25 and projects it to reach Rs 3 lakh crore in three years.

  • Vodafone Idea rises as it approves raising Rs 2,075 crore by allotting equity shares to Oriana Investments on a preferential basis.

  • Wheels India surges as its Q4FY24 net profit rises 78.7% YoY to Rs 38.3 crore, while its revenue increases marginally YoY to Rs 1,274.5 crore. Profit grows due to a fall in inventory costs. The company plans to spend Rs 200 crore on capex in FY25. It appears in a screener for stocks with more than a 20% rise in share price.

  • Rail Vikas Nigam surges as it wins an order worth Rs 148.3 crore from South Eastern Railway to develop an electric traction system for the Kharagpur-Bhadrak section.

  • India’s domestic air traffic grows 2.4% YoY in April to 1.3 crore passengers, according to the data released by DGCA. IndiGo and Air India’s market share rises to 60.6% and 14.2% respectively, in April, while that of Vistara falls to 9.2%.

  • Tata Steel surges to its all-time high of Rs 174.6 per share as it reportedly signs an agreement with National Grid's Electricity System Operator. As per the agreement, National Grid will build a new electrical framework to power Tata Steel's electric arc furnace in Port Talbot by the end of 2027.

  • Trident falls sharply as its net profit plunges 57.1% YoY to Rs 56.6 crore in Q4FY24, due to higher raw materials, employee benefits, and finance costs. However, revenue grows by 7.6% YoY on the back of improvements in the yarn and towel segments. It appears in a screener of stocks with increasing non-core income.

  • NIBE surges as it inks a technology transfer pact with the Defence Ministry to manufacture and sell anti-terrorist vehicles to central and state defence agencies.

  • Himanshu Baid, Managing Director of Poly Medicure, highlights the company’s target to achieve revenue growth of over 22-25% YoY, and margin expansion of 100-150 bps in FY25. He adds that the firm aims to improve growth in renal business by 50-60% YoY.

  • India Cements' Q4FY24 loss narrows 73% YoY to Rs 60.6 crore due to a fall in input cost, power & fuel, and transportation expenses. The company's revenue decreases 13.9% YoY during the quarter. It appears in a screener of stocks with increased shareholding by mutual funds in the past month.

  • Metal stocks like Vedanta, Coal India, Hindalco Industries and Tata Steel rise sharply in trade, helping the broader BSE Metal index to surge to its all-time high of 33,405.8.

  • Indian Railway Finance Corp's board approves fundraising of up to Rs 50,000 crore for FY25 from both domestic and international markets through various methods.

  • Nomura upgrades its rating on Vodafone Idea to ‘Neutral’ and raises the target price to Rs 15. The brokerage has an improved outlook on the company after its fundraise and Q4 results, which were in line with estimates. It notes an improvement in ARPU (average revenue per user) and a moderation in the pace of subscriber loss.

  • Biocon's arm Biocon Biologics gets US FDA approval for Yesafili, an interchangeable biosimilar to Aflibercept, used to treat different types of ophthalmology conditions. Aflibercept has an annual market size of $5.9 billion.

  • Shriram Properties inks a joint development agreement to develop a 4-acre land parcel in Bengaluru. The proposed project will comprise 270 apartments, with an aggregate revenue potential of over Rs 250 crore.

  • IFGL Refractories falls sharply as its net profit plunges 57.4% YoY to Rs 12.5 crore in Q4FY24 due to higher raw materials, employee benefits, and finance costs. Revenue grows 6.7% YoY to Rs 401.2 crore, owing to improvements in the Indian and European markets. It appears in a screener of stocks with declining return on equity (RoE) for the past two years.

  • Aptus Value Housing is falling as 3.6 crore shares (7.2% equity) of the company, amounting to approximately Rs 1,075 crore, change hands in a large deal.

  • Bharat Electronics surges as its Q4FY24 net profit rises 30% YoY to Rs 1,797.1 crore, while its revenue increases by 34.3% YoY. The company's EBITDA margin drops by 156 bps YoY to 26.7% during the quarter. It appears in a screener for stocks with no debt.

  • Patel Engineering rises sharply as its net profit surges by 78% YoY to Rs 140.3 crore in Q4FY24, helped by lower employee benefits expenses, construction and finance costs. Revenue grows by 11.7% YoY to Rs 1,374.3 crore on the back of an improvement in the civil construction segment. It features in a screener of stocks with high analyst ratings with at least 20% upside.

  • Kalpataru Projects International inks three contracts worth Rs 7,550 crore with Aramco for engineering, procurement, and construction of the master gas system network. The project involves laying more than 800 km of lateral gas pipelines.

  • Ujjivan Small Finance Bank's net profit grows 6.5% YoY to Rs 329.6 crore in Q4FY24. Revenue increases by 29.4% YoY due to improvements in the treasury, retail, and wholesale banking segments. The bank's asset quality improves as its gross NPA contracts by 65 bps YoY. It shows up in a screener of stocks with improving revenue for the past eight quarters.

  • Nifty 50 was trading at 22,474.75 (-27.3, -0.1%), BSE Sensex was trading at 73,822.85 (-183.1, -0.3%) while the broader Nifty 500 was trading at 21,118.85 (-25.6, -0.1%).

  • Market breadth is in the red. Of the 2,001 stocks traded today, 693 were on the uptrend, and 1,220 went down.

Riding High:

Largecap and midcap gainers today include Hindustan Zinc Ltd. (741.30, 19.6%), Balkrishna Industries Ltd. (3,052.70, 9.1%) and Vedanta Ltd. (491.70, 7.2%).

Downers:

Largecap and midcap losers today include Delhivery Ltd. (389.75, -10.4%), PB Fintech Ltd. (1,286.30, -5.5%) and Astral Ltd. (2,078.20, -5.3%).

Crowd Puller Stocks

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

Top high volume gainers on BSE included Rail Vikas Nigam Ltd. (341.75, 14.0%), SJVN Ltd. (148.15, 10.0%) and Balkrishna Industries Ltd. (3,052.70, 9.1%).

Top high volume losers on BSE were Delhivery Ltd. (389.75, -10.4%), Aptus Value Housing Finance India Ltd. (297.65, -5.8%) and City Union Bank Ltd. (145, -5.3%).

Aether Industries Ltd. (838.70, 0.9%) was trading at 14.5 times of weekly average. Star Cement Ltd. (244.75, 8.5%) and Global Health Ltd. (1,335.20, -4.9%) were trading with volumes 13.9 and 13.2 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

63 stocks hit their 52 week highs, while 2 stocks were underachievers and hit their 52 week lows.

Stocks touching their year highs included - Adani Power Ltd. (680.05, 7.2%), Ashok Leyland Ltd. (211.35, 0.4%) and Aurobindo Pharma Ltd. (1,218.25, 1.3%).

Stocks making new 52 weeks lows included - CCL Products India Ltd. (553.85, -2.6%) and Anupam Rasayan India Ltd. (785.10, 0.1%).

7 stocks climbed above their 200 day SMA including Vinati Organics Ltd. (1,705.90, 2.3%) and JK Lakshmi Cement Ltd. (793.20, 1.9%). 16 stocks slipped below their 200 SMA including Delhivery Ltd. (389.75, -10.4%) and Aptus Value Housing Finance India Ltd. (297.65, -5.8%).

 
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The Baseline
20 May 2024, 05:54PM
Five high-upside stocks from analysts this week - May 20, 2024
By Abhiraj Panchal

Today we take a look at five stock picks from analysts with high upside potential.

1. DLF:

Edelweiss maintains a ‘Buy’ rating on this realty developer with a target price of Rs 1,081, indicating a potential upside of 27%. In Q4FY24, the company reported revenue growth of 47% YoY to Rs 2,316.7 crore, with net profit rising 61.5% YoY to Rs 920.7 crore. Analysts Amit Agarwal and Rishith Shah say, “We are upbeat on the company’s growth story given its robust launch pipeline, brand recall, favourable dynamics in its home turf, improving annuity income, and market consolidation.” DLF’s recent luxury projects in North India have sold out within a few days. 

Analysts are optimistic about the company’s steady presales of Rs 14,777 crore, down 2% YoY primarily due to a higher base in the previous year. New launches of around 6 million square feet (msf) constituted 82% of presales, while the remaining 18% came from existing projects. 

Agarwal and Shah are positive about the company’s outlook as the management forecasted a launch pipeline of Rs 36,000 crore for FY25. They also forecast a revenue CAGR of 11% for FY25-26 owing to the launch pipeline of Rs 94,000 crore with an additional land bank of 132 msf, for which development plans are yet to be finalised.

2. Safari Industries (India):

IDBI Capital maintains a ‘Buy’ call on this luggage maker with a target price of Rs 2,535, indicating an upside of 20%. The company’s net profit grew by 13.4% YoY to Rs 43.2 crore in Q4FY24, while its revenue improved by 21.3% YoY to Rs 370.5 crore. 

Analyst Ajit Sahu says, “Safari Industries Q4FY24 sales were in line with our expectations.” He believes that the growth occurred due to improvements in tourism activities. He also notes, “Over the past two years, Safari has gained market share from its peers”. The analyst states that Safari Industries' sales grew by 21% YoY outperforming VIP Industries’ sales growth of 15% YoY in FY24.

Sahu is optimistic about the company as it sets up a greenfield manufacturing unit in Jaipur. He believes that future growth will come from its initiative to sell premium products like Urban Jungle (the premium luggage collection). He applauds the management’s ability to outperform industry sales growth and also expand operating margins to higher levels. He estimates profit and revenue to grow at a 26.5% and 19% CAGR, respectively, over FY25-26.

3. CreditAccess Grameen:

KR Choksey maintains its ‘Buy’ call on this finance company with a target price of Rs 1,850, indicating an upside of 29.9%. In Q4FY24, the company’s net profit grew by 33.9% YoY to Rs 397.1 crore (1.1% above the brokerage’s estimates), while total revenue improved by 36.9% YoY to Rs 1,459.1 crore. Analyst Unnati Jadhav says, “CreditAccess Grameen reported stellar operating performance during the quarter, but saw deterioration in asset quality led by higher slippages.”

The analyst is optimistic about the company's expansion strategy and expects it to be key to business momentum going forward. The company added 194 branches during FY24, bringing its total infrastructure strength to 1,967 branches. The analyst also says that the NBFC succeeded in controlling its borrowing costs through a cost-effective borrowing mix, and expects it to remain stable and bring predictability to its overall margins in FY25.

Jadhav continues to be positive about CreditAccess Grameen due to its leadership, improving geographical footprint, superior return ratios, consistent operating performance, and industry tailwinds.

4. Sansera Engineering:

Axis Direct maintains a ‘Buy’ rating on this auto parts and equipment manufacturer with a target price of Rs 1,270. This indicates a potential upside of 19.8%. In Q4FY24, the firm reported revenue growth of 19.7% YoY to Rs 745.6 crore, with net profit rising 31.1% YoY to Rs 46.1 crore. 

Analysts Shridhar Kallani and Aditya Welekar note, “For FY24, the share of auto components has reduced to 75%, while non-auto & tech and aerospace segment has increased to 20% and 5%, respectively.”

Kallani and Welekar are upbeat on the company’s capex plan of Rs 400 crore in FY25 and Rs 350 crore in FY26, mainly towards electric vehicle components and non-auto products. They expect the company to post a CAGR of around 20.8% for EBITDA and 29.4% for net profit over FY25-26. They attribute this growth to the sales mix tilting towards non-auto components, growth in the export business, and recovery in its its Sweden operations led by improved operational efficiency.

5. NCC:

ICICI Direct maintains its ‘Buy’ call on this construction and engineering company with a target price of Rs 320. This indicates a potential upside of 15.2%. In Q4FY24, the firm’s net profit increased by 25.3% YoY to Rs 239.2 crore, while revenue grew by 31.1% YoY. 

Analysts Bhupendra Tiwary and Hammaad Ahmed Ulde are optimistic about NCC’s order book. Its order book stands at Rs 57,536 crore, largely driven by Rs 18,439 crore worth of orders secured in FY24, a growth of 37% YoY. The management has guided for an order book inflow of Rs 20,000-22,000 crore, with ordering likely to be impacted owing to elections in the first half. Considering the order book, the analysts expect a revenue CAGR of 15% over FY25-26. With healthy execution, the analysts estimate EBITDA margins at 10% and 10.5% in FY25 and FY26, respectively, and expect a 26% earnings CAGR over FY25-26.

The analysts say, “NCC is a key beneficiary of the tailwinds in the buildings, roads, water, mining and electrical segments. Given strong order book visibility and improving balance sheet strength, it is poised for healthy growth ahead.”

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

(You can find all analyst picks here)

 
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The Baseline
18 May 2024
How bad is India's wealth divide? | Screener: High and consistent dividend stocks

The recent Ambani wedding - of their youngest son Anant - was a media event that seemed impossible to avoid. It wasn't just the tabloids and the TV channels that were doing what felt like round the clock coverage. Even the business dailies couldn't stay away. There were so many questions: did the bride plagiarize her speech? What shoes did Nita wear to the sangeet? Etc. 

 One eye-catching moment was completely unchoreographed. It was Meta CEO Mark Zuckerberg and his wife admiring the bridegroom's $1M Richard Mille watch.  The tweets and articles this moment alone generated, is a symptom of our current billionaire obsession.

My mother used to say that it is unseemly to count other people's money. Here however, I have a good reason for doing it. Recently, some economists like Adam Tooze have made the argument that billionaires shouldn't exist. The inequality that results from the oversized share billionaires have over a country's resources, they argue, damages the economy, and results in much fewer resources for the rest of us.

In this week's Analyticks:

How big - and damaging - is India's wealth divide?

Screener: The highest and most consistent dividend stocks

Let's do some counting.

How big is India's wealth divide, really?

Those of us who live in urban India are used to seeing slum towns in one area of the city, and fancy gated communities with several swimming pools on the very next road. It is also something that visitors to India love to talk about as evidence of our high inequality levels. 

But in reality, India is not as unequal as some other countries in share of wealth. 

A troubling sign however, is when we look at annual incomes rather than wealth. Here, the share of India's richest is far higher than countries like the US and China. The top 10% of Indians are cornering a big share of national income every year.

The average annual income in India is just around Rs. 2.34 lakh -- a pretty small number. But the divide between the top 1% and everyone else is pretty large. And the top .001% of the population eclipses even them.   

India’s richest 1% people have 22.6% of our national income, the highest in over a century .  

Indians tend to invest most of the money that they make in land -- land and buildings together are 90% of Indian household wealth. This percentage hasn't changed much in 60 years. The share of financial assets for Indian households has increased from 4% in 1981 to around 10% today. When we look at total accumulated household wealth, the class divide is large. 

The wealthiest 10,000 individuals in India own on average, assets of Rs. 2,260 crore each (Rs 22.6 billion), or 16,763 times the wealth of the average Indian. These are the people wearing Mielle watches, Lora Piana sweaters and taking chartered flights. For this group, queuing up for a first class seat on a commercial airline means failure, not success. 

India's wealth divide didn't start with any one government

The vast accumulation of resources by a small group of people did not happen with one government, or in a few years. The problem of the Indian middle class steadily losing out, and the top 10% getting richer has been happening since the early 1990s. No Indian government from any political party has so far, been able to pause this.

Some of the wealth gains for the top 10% and top 1% of the population, has been driven by the stock markets -- the Sensex for instance, has grown by 7300% between 1990 and 2023.

But a group cornering more resources is a self-fulfilling problem, since they use these resources and influence to get even more. This means that over time, the influence of the top 1% on policies, governments and even elections become disproportionately high.

In India, we see this skew everywhere. In the stock market, just 32% of listed companies -- 1,700 companies -- have a market cap of over Rs. 500 crore. Both market capitalization and profits are skewed towards the largest conglomerates in India. 

The rise of these billionaire entrepreneurs means they are busy influencing policy in every aspect of the government, and attempting to push out competition in entire sectors - telecom, power, gas, retail etc. Tariffs that benefit companies and promoters but hurt consumers have been on the rise. Subsidy policies disproportionately favour large corporations over SMEs, like PLI schemes. 

To tackle the problem we must first acknowledge it. For example, economists have pointed out that a wealth tax of just 2% on the total net wealth of the 162 wealthiest Indian families in 2022 "would have provided revenue equal to  0.5% of the national income -- more than twice the central government’s budget expenditures on the NREGA".

A wealth tax is nothing new and has been implemented even in Ancient Greece, when the 'eisphora' wealth tax was levied on the richest 4% of the Athens population. A practical wealth tax would tax liquid assets above a certain threshold, the enormous amount of wealth that is idle and "trapped" in bank accounts. But this is just a beginning. For these curves to really shift, we must start the conversation.

Screener: High and consistent dividend yield stocks

PSUs lead in 3-yr dividend yield %

This screener shows stocks with high and consistent dividend yields over one, two and five years. It features the top 10 stocks with the highest dividend yield in the last three years. These companies have also outperformed the Nifty 50 in the past year. 

The screener excludes stocks that have given a very high one-time/special dividend in the past two years. A high one-time dividend can inflate historical dividend yield, and such stocks may not be consistent high dividend stocks. 

The screener is optimised to show 10 stocks with high 3-year dividend yield %. Seven of the 10 stocks currently in the screener are from the public sector. Major stocks that appear in the screener are Vedanta, Coal India, ICICI Securities, Power Grid Corp of India, Oil & Natural Gas Corp and Power Finance Corp. 

FY24 has seen an increase in government budgets, contributing to growth in stock prices for these public sector companies. These public companies also have to give out a certain percentage of dividends every year – according to government guidelines, all public sector companies must give out at least 30% of their net profit or 5% of net worth (whichever is higher) for annual dividends. As a result, they tend to dominate the screener. Non-PSU stocks in the screener are ICICI Securities (capital markets), Tech Mahindra (IT consulting & software) and Gujarat Pipavav (marine port & services).

This screener also appears in Starfolio’s free featured baskets. This basket is great for long-term investors looking for high dividend-paying companies to generate passive income. This particular basket was created on March 10, 2023, with an annual rebalancing frequency. Its latest rebalance was on May 3, 2024, and the next scheduled one is on May 1, 2025. Each stock in the basket holds an equal weight of 10%, with seven being large-cap and three mid-cap stocks. 

Since its creation, the basket has given pretty impressive returns of 249.1% (not including dividends) over the past 14 months. The basket outperformed the Nifty 50 index by 221.3 percentage points in the same period. 

You can find more screenershere.

 
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The Baseline
17 May 2024
Five Interesting Stocks Today - May 17, 2024

1. Oberoi Realty:

This Mumbai-based realty developer hit a new 52-week high of Rs 1771.5 on Friday after surging 19.5% over the week, following the release of its Q4 and FY24 results. In Q4FY24, the company reported operating revenue growth of 36.8% YoY to Rs 1,314.8 crore, surpassing Trendlyne’s Forecaster estimate by 2.8%. Its net profit rose 64.1% YoY to Rs 788 crore, beating forecaster estimates by 136%. The company got a boost from strong demand for its luxury projects and was able to reduce inventory significantly, leading to lower operating costs.

Oberoi Realty’s rental portfolio, which contributed around 12% of Q4 revenue, grew 68% YoY to Rs 155 crore. Occupancy levels at Commerz I and II have increased by 8% and 6% respectively on an annual basis. A new entrant to their leasing portfolio, Commerz III, has already reached an occupancy of 50% with Morgan Stanley occupying most of it. The management aims to expand occupancy levels to 80-85% in the next two quarters.

The company’s board has approved a fundraising of up to Rs 4,000 crore by issuing non-convertible debentures and a qualified institutional placement of equity shares. The funds will be used for ongoing and upcoming projects.

Chairman and Managing Director, Vikas Oberoi says, “The company will be able to achieve the Rs 1,000 crore mark from its rental portfolio from its current levels of 450 crore by the end of FY25.” He also highlighted that most of its realty peers have already sold their properties, leaving them with little to no competition. As a result, the company expects to sell its inventory of Rs 5,000 crore, mostly ready-to-move properties, in the next 24-30 months. 

Zee Business reports that HDFC Securities maintains a ‘Buy’ rating on Oberoi Realty. Analysts are optimistic due to the cash flow visibility from ready-to-move-in inventory in the 360 West and Mulund projects, along with other new projects. With a target price of Rs 1,833, this real estate developer has a potential upside of 5.2%.

2. Polycab India: 

This consumer durables company surged by 11.8% over the past week and hit a new 52-week high of Rs 6,542.9 on Friday. This comes after its net profit rose 29.1% YoY to Rs 553.5 crore in Q4FY24, beating Trendlyne’s Forecaster estimates by 13.5%. Its revenue also rose by 29% YoY during the quarter, driven by the wires and cables segment. As a result of the rise in share price, Polycab India features in a screener of stocks with prices above short, medium, and long-term moving averages.

The company’s wires and cables (W&C) segment, which constitutes around 85% of the revenue, grew by 19.3% YoY during the quarter. In comparison, its peers Havells India and KEI Industries saw W&C segment growth of 14.1% and 17.9%, respectively YoY. In FY24, Polycab’s market share in the W&C industry improved to 25-26% (compared to 22-24% in FY23). 

Cables and wires manufacturers have gained overall, from the increased demand in the real estate and infrastructure sectors, as well as increased government capex. Polycab’s FMEG segment also witnessed healthy growth at 17.3% YoY due to higher demand.

According to Gandharv Tongia, the CFO, “Rural market is growing, and with consumer goods players witnessing a good run, more investments are likely. In addition to domestic markets, we see a lot of demand coming in from Europe, Australia, and other countries. All this is expected to help sustain the demand momentum in the cables and wire segment.” The consumer durables maker expects to achieve its target of Rs 20,000 crore in revenue, as per its Project Leap by the end of FY26. It has also guided a capex of Rs 10,000-11,000 crore over the next two years.

Earlier this year, the Income Tax Department allegedly detected unaccounted cash sales by the company and conducted raids at various premises. The management highlighted that it was instructed to provide explanations for certain queries. Polycab has not been charged any penalty so far.

Post the company’s results, Prabhudas Lilladher maintains its ‘Buy’ rating on Polycab with an upgraded target price of Rs 7,086. The brokerage sees revenue and PAT CAGR of 17.9% and 16.6%, respectively, over FY25-26, led by a strong domestic demand environment and expected improvement in international business.

3. Siemens: 

This heavy electrical equipment company surged 17.2% over the past week and hit its all-time high of Rs 7,249.1 per share on Thursday as its net profit rose 70.2% YoY to Rs 802.5 crore in Q4FY24. Revenue increased by 18.6% YoY to Rs 5,681 crore, driven by improvements in the energy, smart infrastructure, mobility, and digital segments. 

The company’s net profit beat Trendlyne’s Forecaster estimates by 36.3%. However, revenue missed estimates by 0.6%. The revenue miss was due to a decline in order booking to Rs 5,180 crore in Q4FY24 compared to an order inflow of Rs 25,400 crore in Q3FY24 which, according to the management, was due to delays in deal finalisation. It shows up in a screener of stocks with negative to positive growth in sales and net profit with strong price momentum.

Siemens also approved a capex of Rs 550 crore for capacity expansion. It also plans the demerger of its energy business into a separate listed entity, Siemens Energy. The company’s board of directors approved issuing one share of Siemens Energy for one share held in Siemens. In FY24, the company’s energy business recorded a revenue of Rs 6,080.3 crore, contributing to 33.2% of its total revenue. 

Speaking on the company’s capex plans, Sunil Mathur, MD and CEO, said, “Siemens is focused on expanding its operations, with the expansion of the gas insulated switchgear (GIS) factory in Goa (approx. Rs 330 crore) and a new metro train manufacturing facility in Aurangabad (approx. Rs 190 crore), which is set to serve multiple international markets.”

Post results, Motilal Oswal maintains its ‘Buy’ call on the stock with an upgraded target price of Rs 7,800 per share. This indicates a potential upside of 8.6%. The brokerage remains positive on the company due to its spending in the transmission and business and its strong positioning to win orders in the railway segment. It expects the company’s revenue to grow at a CAGR of 13.1% over FY25-26.

4. Zomato:

This internet software and services company fell 3.5% on Monday after announcing its results. In the past year, the firm's share price has risen by 209.3%, outperforming its industry by 91.6 percentage points. In Q4FY24, the company reported a net profit of Rs 175 crore, compared to a loss of Rs 188.2 crore in Q4FY23. The company’s revenue grew 70.5% YoY. It appears in a screener for stocks with increasing revenue every quarter for the past eight quarters. However, the company missed Trendlyne Forecaster’s net profit estimate by 13%. The estimates miss was due to a higher employee stock option plan (ESOP) cost. The total ESOP charge for Q4FY24 was Rs 161 crore.

Zomato’s revenue from the food delivery business grew 48.4% YoY, while Hyperpure (its B2B business) increased by 99% YoY. Blinkit, its quick commerce segment, grew by 111.9% YoY and turned EBITDA positive in March 2024. It added 75 stores in Q4, taking its total store count to 526. 

The company expects to add another 100 stores in the next quarter and reach 1,000 stores by the end of FY25. CEO Deepinder Goyal said, “With the aggressive store expansion plans, the EBITDA is likely to be lower for the next few quarters.” In steady state, he expects it to be 4-5% as a percentage of gross order value.

Among other news, in the past week, Zomato surrendered its payment aggregator license and its application for the mobile wallet license. The management believes that it doesn't have a significant competitive advantage in the payments space and hence does not foresee the payments business as commercially viable.

CLSA upgraded its rating to a 'Buy' due to Zomato's strong guidance for Blinkit and steady performance in food delivery, despite ESOP costs impacting profits in Q4. Analysts are optimistic about the company’s achievement of breakeven for Blinkit and plan to prioritize its growth. They also believe that the expansion will impact the short-term profitability of the company but say that it will help the business become a quick-commerce leader.

5. JK Cement:

This cement & cement products company rose by 2.4% on Monday after it announced its result on May 12. The firm beat Trendlyne’s Forecaster estimates for Q4FY24 for revenue by 0.8%, but missed the net profit estimate by 20.8%. For Q4FY24, the company’s net profit rose by 95.7% YoY to Rs 219.8 crore on the back of 29% decline in power and fuel costs, while revenue rose by 11.9% YoY. The stock shows up in a screener for companies with strong annual EPS growth.

The company saw a 19% increase in volumes in FY24, thanks to the recent expansion of cement capacity in central India, where utilization rates reached 85%. Additionally, its new expansion plan aims to boost total Grey Cement capacity from 22 mtpa to 30 mtpa, at a capital cost of Rs 2,850 crore.

The company expects demand to pick up in Q3FY25 post the elections and monsoon in Q1 & Q2. With the government's increased attention on infrastructure development in states like UP and Maharashtra, there's anticipation of accelerated per-capita cement consumption in the future. The company’s upcoming Prayagraj unit is expected to commence in Q2FY25.

The company’s management expects volume growth of ~10% vs. industry growth of ~7% in FY25 along with further cost reduction of Rs 150-200/tn by FY26. For its paint business, the management expects the sales to reach Rs 300 crore in FY25 and Rs 500 crore in FY26. In Q1FY25, the company anticipates a slight decrease in power and fuel expenses. 

Axis Direct has retained its "Buy" rating on JK Cement with a price target of Rs 4,340. The brokerage expects the company’s revenue to reach a CAGR of 14% over FY25-26 and expects the company to report an EBITDA margin in the range of 18-20% with EBITDA/tonne of Rs 1,140/1215 in FY25E/FY26E, driven by higher volumes, stable realizations, and lower costs.

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
17 May 2024
Market closes higher, Endurance Technologies' Q4 net profit rises 54% YoY to Rs 210.2 crore
By Trendlyne Analysis

Nifty 50 closed at 22,466.10 (62.3, 0.3%), BSE Sensex closed at 73,917.03 (253.3, 0.3%) while the broader Nifty 500 closed at 21,064.55 (135.5, 0.7%). Of the 2,139 stocks traded today, 1,358 were gainers and 735 were losers.

Indian indices maintained the gains from the afternoon session and closed in the green. The volatility index, Nifty VIX, dropped by 1% and closed at 19.8 points. Endurance Technologies Q4FY24 net profit rose 54% YoY to Rs 210.2 crore, beating Forecaster estimates by 20.8%. Revenue increased by 20.2% YoY during the quarter.

Nifty Smallcap 100 and Nifty Midcap 100 closed higher following the benchmark index. Nifty Metal and Nifty Media closed higher than Thursday’s closing level. According to Trendlyne’s sector dashboard, metal & mining emerged as the top-performing sector of the day, with a rise of over 2.1%.

Most European indices trade in the red, except for Switzerland’s SMI index trading lower. US indices futures trade flat, indicating a cautious start. Eurozone’s CPI inflation for April remains unchanged at March levels of 2.4%.

  • Money flow index (MFI) indicates that stocks like Schaeffler India, ABB India, Jupiter Wagons, and Honeywell Automation India are in the overbought zone.

  • GPT Infraprojects rises as its Q4FY24 net profit increases by 64.7% YoY to Rs 18.8 crore, while revenue grows by 12.9% YoY. Its EBITDA margin improves by 160 bps YoY to 12.4%. The company appears in a screener for stocks with a 20% growth in share price over the past month.

  • Endurance Technologies surges as its Q4FY24 net profit rises 54% YoY to Rs 210.2 crore, beating Forecaster estimates by 20.8%. Revenue grows 20.2% YoY during the quarter. The company features in a screener of companies with zero promoter pledge.

  • Axis Direct maintains a 'Hold' call on Colgate-Palmolive (India) with a target price of Rs 2,500. The brokerage is optimistic about the company's long-term strategy to drive revenue growth by launching new products, marketing, rural market penetration, etc. It estimates net profit and sales to grow at 12.7% and 10.3% CAGR, respectively over FY25-26.

  • Rajesh Jejurikar, Executive Director and CEO (Auto and Farm Sector) of Mahindra & Mahindra, projects a growth of 15-17% in the SUV portfolio for FY25 and expects electric SUVs to constitute 20-30% of the portfolio by 2027. He highlights the strong EBIT margin in their tractor business despite decline in volume.

  • IDBI Capital retains its 'Buy' call on NCC with a target price of Rs 300 per share. This indicates a potential upside of 8.2%. The brokerage is optimistic about the company's order inflow and mentions that the order book of Rs 57,500 crore continues to provide revenue visibility.

  • Go Digit General Insurance's Rs 2,614.7 crore IPO gets bids for 5.4X the available 5.3 crore shares on offer on the third day of bidding. The retail investor quota gets bids for 3.5X the available 92.1 lakh shares on offer.

  • Karur Vysya Bank receives the Reserve Bank of India's approval to appoint J Natarajan as the Executive Director.

  • The United Nations revises India’s GDP growth forecast for FY24 to 6.9% (from 6.2% earlier), and 6.6% in FY25. The organization sees economic growth driven by strong public investment and private consumption.

  • Info Edge (India) rises as it reports a net profit of Rs 60.4 crore in Q4FY24, compared to a loss of Rs 272.8 crore in Q4FY23. Its revenue jumps by 376.6% YoY. The company's revenue was lower in Q4FY23 due to market loss on investments included in other income. Info Edge appears in a screener for stocks with decreased shareholding by mutual funds.

  • Wonderla Holidays falls as its Q4FY24 net profit declines 35.5% YoY to Rs 22.6 crore due to a rise in input cost and employee benefit expenses. Revenue decreases by 6.9% YoY during the quarter. The company appears in a screener for stocks with low debt.

  • eClerx Services falls as its Q4FY24 net profit declines 1.5% YoY to Rs 130.5 crore, despite a 13.1% YoY rise in revenue. Profit falls due to higher employee benefit expenses. The company's board approves the proposal for a buyback of up to 13.8 lakh shares worth Rs 385 crore.

  • Indrajit Mookerjee, Executive Director and VC of Texmaco Rail, highlights the execution run-rate of 850 wagons per month, and says the company will maintain the same rate going forward. He says the updated orderbook stands at Rs 8,000 crore/ 14,600 wagons. Mookerjee expects revenue growth of around 50% in FY25.

  • Consumer durables stocks like Crompton Greaves Consumer Electricals, Dixon Technologies (India), Amber Enterprises India, and Cera Sanitaryware are rising in trade. The broader sectoral indices, BSE Consumer Durables and Nifty Consumer Durables are also trading in the green.

  • Cresta Fund sells a 0.6% stake (20 lakh shares) in Jindal Saw, for approximately Rs 108.3 crore in a block deal on Thursday. Meanwhile, Nippon India Small Cap Fund and Societe Generale pick up stakes in the company.

  • Sanghvi Movers' Q4FY24 net profit rises 40.7% YoY to Rs 47.7 crore, while revenue increases by 34.5% YoY. The company's board approves a stock split in the proportion of 1:2, implying 1 share will be sub-divided into 2 shares.

  • Transport Corp of India plans to acquire two cargo ships worth around $35-40 million in FY25, to boost its seaways business. The company is exploring shipbuilding options in China, Japan, and Korea and anticipates placing new orders by the second half of the year.

  • Larsen & Toubro's buildings and factories business vertical wins multiple orders worth Rs 1,000-2,500 crore. The orders include the construction of a Medical College and Hospital Campus in Kolkata, as well as add-on orders from some of its existing projects.

  • Glenmark Pharmaceuticals is rising as it receives final approval from the US FDA for Brimonidine Tartrate and Timolol Maleate Ophthalmic Solution. The ophthalmic solution, used in the treatment of increased eye pressure, has an estimated annual sales of $290 million in the US.

  • Mahindra & Mahindra hits an all-time high of Rs 2,554 as its Q4FY24 net profit rises 4.5% YoY, while revenue increases by 9% YoY. The company's board approves an investment of Rs 12,000 crore in its electric vehicles arm, Mahindra Electric Automobile, over the next three years.

  • Reports suggest that 83.7 lakh shares (around 1.9% stake) of PB Fintech change hands in two block deals. The company’s promoters are likely sellers in this transaction.

  • BEML surges as it wins an order worth Rs 250 crore from Northern Coal Fields for dump trucks.

  • Zydus Lifesciences' arm, Zydus Lifesciences Global FZE, inks an exclusive licensing and supply agreement with MSN Laboratories for manufacturing and supplying cabozantinib tablets in the US market. The tablet has an addressable market of $1,464 million in the US.

  • Vodafone Idea's Q4FY24 losses extend by 19.6% YoY to Rs 7,674.6 crore despite a marginal rise in revenue. The loss widens due to an increase in finance costs. The company appears in a screener for stocks with decreasing mutual funds holding.

  • Crompton Greaves Consumer Electricals' Q4FY24 net profit rises 5.5% YoY to Rs 138.4 crore. Revenue increases by 9.4% YoY during the quarter, driven by the electric consumer durables segment. The company appears in a screener for stocks with rising net cash flow and cash from operating activity.

Riding High:

Largecap and midcap gainers today include GlaxoSmithKline Pharmaceuticals Ltd. (2,287, 13.1%), Dixon Technologies (India) Ltd. (8,938.40, 8.2%) and Solar Industries India Ltd. (8,900, 7.2%).

Downers:

Largecap and midcap losers today include Honeywell Automation India Ltd. (5,2912, -5.1%), MphasiS Ltd. (2,311.60, -2.5%) and Voltas Ltd. (1,288.30, -2.5%).

Crowd Puller Stocks

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

Top high volume gainers on BSE included Kaynes Technology India Ltd. (3,080.35, 20.0%), Crompton Greaves Consumer Electricals Ltd. (391.90, 15.6%) and GlaxoSmithKline Pharmaceuticals Ltd. (2,287, 13.1%).

Top high volume losers on BSE were eClerx Services Ltd. (2,278.80, -5.1%), SBI Life Insurance Company Ltd. (1,434.20, -1.2%) and Motherson Sumi Wiring India Ltd. (68.65, -1.2%).

Affle (India) Ltd. (1175.25, 7.4%) was trading at 20.0 times of weekly average. Whirlpool of India Ltd. (1,559.55, 3.3%) and Prince Pipes & Fittings Ltd. (668.60, 1.3%) were trading with volumes 14.9 and 12.8 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

45 stocks took off, crossing 52-week highs,

Stocks touching their year highs included - Ashok Leyland Ltd. (207.85, 0.6%), Astral Ltd. (2,303, 1.3%) and Bharat Electronics Ltd. (248.20, 4.3%).

19 stocks climbed above their 200 day SMA including JK Paper Ltd. (376.95, 7.7%) and Affle (India) Ltd. (1,175.25, 7.4%). 5 stocks slipped below their 200 SMA including Dabur India Ltd. (535.80, -1.2%) and Dr. Reddy's Laboratories Ltd. (5,799.55, -0.9%).

 
Trendlyne Marketwatch
Trendlyne Marketwatch
16 May 2024
Market closes higher, GAIL (India)'s Q4FY24 net profit rises 260.1% YoY to Rs 2,177 crore
By Trendlyne Analysis

Nifty 50 closed at 22,403.85 (203.3, 0.9%), BSE Sensex closed at 73,663.72 (676.7, 0.9%) while the broader Nifty 500 closed at 20,929.05 (187.2, 0.9%). Market breadth is in the green. Of the 2,137 stocks traded today, 1,171 showed gains, and 921 showed losses.

Indian indices gyrated between losses and gains throughout the day and closed in the green. The Indian volatility index, Nifty VIX, fell 1.3% and closed at 20 points. Honeywell Automation India hit its all-time high and closed sharply higher after its net profit grew 32.2% YoY to Rs 148.2 crore in Q4FY24, due to lower employee benefits expenses. 

Nifty Smallcap 100 and Nifty Midcap 100 closed in the green, taking cues from the benchmark index. Nifty FMCG and Nifty Realty closed higher than their Wednesday close. According to Trendlyne’s Sector dashboard, General Industrials emerged as the best-performing sector of the day, with a rise of 2.4%.

Major European indices traded flat or lower, despite the Asian indices closing in the green. US index futures traded flat or higher, indicating a positive start to the trading session. Brent crude oil futures traded in the red after closing marginally higher on a volatile day on Wednesday.

  • Relative strength index (RSI) indicates that stocks like Timken India, Siemens, CG Power and Industrial Solutions and Cummins India are in the overbought zone.

  • GAIL (India)'s Q4FY24 net profit rises 260.1% YoY to Rs 2,177 crore despite a 2.7% YoY fall in revenue. Profit grows on the back of fall in input and inventory costs. The company appears in a screener for stocks with growth in net profit with increasing profit margin.

  • Varroc Engineering, Astral, Balkrishna Industries, and Poly Medicure rise by 9.2%, 8.8%, 4.9% and 3.2% respectively over the past week, ahead of their Q4FY24 results tomorrow.

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

  • Awfis Space Solutions sets the price band for its IPO at Rs 364-383 per share. The issue, valued at Rs 598.9 crore, consists of a fresh issue worth Rs 128 crore and an offer for sale of around Rs 470.9 crore. The issue opens for subscription on May 22.

  • Caplin Point Laboratories is rising as its net profit grows by 19.1% YoY to Rs 121.6 crore in Q4FY24. Revenue increases by 17.4% YoY to Rs 470.5 crore due to an improvement in the US and emerging markets. It shows up in a screener of stocks with increasing revenue for the past eight quarters.

  • Go Digit General Insurance's Rs 2,614.7 crore IPO gets bids for 0.5X the available 5.3 crore shares on offer on the second day of bidding. The retail investor quota gets bids for 2.2X the available 92.1 lakh shares on offer.

  • Texmaco Rail & Engineering rises sharply as its net profit surges 2.5x YoY to Rs 45.3 crore in Q4FY24, driven by lower finance costs. Revenue increases by 38% YoY to Rs 1,164.1 crore, owing to improvements in the freight car and electrical infrastructure segments. It features in a screener of stocks with rising return on equity (RoE) for the past two years.

  • India’s merchandise trade deficit widens to $19.1 billion in April, compared to $15.6 billion in March. Merchandise exports stood at around $35 billion in April, while imports were at $54.1 billion.

  • Reliance Industries' arm, REC Solar Holdings AS, sells its 100% stake in REC Solar Norway AS to Elkem ASA for around $22 million.

  • KR Choksey retains its 'Buy' call on State Bank of India with an upgraded target price of Rs 975 per share. This indicates a potential upside of 20.6%. The brokerage believes that the bank is well-positioned for future growth due to its strong financial performance and favorable market conditions. It expects the company's net interest income to grow at a CAGR of 14.7% over FY24-26.

  • Happiest Minds Technologies announces a strategic partnership with Solvio to provide salesforce implementations offering practical solutions on a global scale, transforming client engagements and increasing operational efficiencies.

  • Tribhuwan Adhikari, MD and CEO of LIC Housing Finance, highlights the company’s target to achieve double-digit growth in disbursement and loans in FY25. He expects the net interest margins (NIMs) in the range of 2.7-2.9% for the year. Adhikari also sees an improvement in asset quality in FY25.

  • Brightcom Group plunges to its 52-week low of Rs 11.7 per share as the NSE and BSE reportedly suspend trading its shares from June 14. This comes after the company failed to comply with SEBI's regulations to submit its financial results for Q2FY24 and Q3FY24. The company will be allowed to trade only on the first day of each week for the next six months starting June 30.

  • NLC India falls sharply as its net profit plunges 86.2% YoY to Rs 114.2 crore in Q4FY24 due to higher employee benefits expenses. Revenue decreases by 31.1% YoY to Rs 4,034.4 crore, impacted by the mining and power generation segments. It appears in a screener of stocks with declining net cash flow.

  • Adani Energy Solutions completes acquisition of 100% stake of Essar's Mahan-Sipat transmission assets for Rs 1,900 crore.

  • Saurabh Gupta, CFO of Dixon Technologies (India), sees significant growth opportunities in the mobile segment. He highlights the company’s target to achieve revenue of Rs 30,000-32,000 crore, and EBITDA margins of around 3.9-4.2% in FY25.

  • Honeywell Automation India surges to its all-time high of Rs 53,484.6 as its net profit grows 32.2% YoY to Rs 148.2 crore in Q4FY24, due to lower employee benefits expenses. Revenue rises by 11.9% YoY to Rs 950.7 crore during the quarter. It shows up in a screener of stocks with improving net cash flow for the last two years.

  • Oil India rises as its board of directors is set to meet on May 20 to discuss the issuance of bonus shares to its equity shareholders.

  • NCC surges as its Q4FY24 net profit rises 25.3% YoY to Rs 239.2 crore, while its revenue increases by 31.1% YoY to Rs 6,530.1 crore. Its EBITDA rises 18.5% to Rs 551 crore. The company appears in a screener for stocks with low debt.

  • Centre lowers the windfall tax on locally produced crude oil to Rs 5,700 per tonne from Rs 8,400 earlier. Meanwhile, the tax on diesel, aviation turbine fuel (ATF), and petrol remains ‘Nil’.

  • Pricol surges to its all-time high of Rs 464 per share as its net profit grows by 39.3% YoY to Rs 41.5 crore in Q4FY24. Revenue increases by 12% YoY to Rs 588.5 crore during the quarter. It shows up in a screener of stocks with zero promoter pledge.

  • Brookfield India Real Estate Trust is set to acquire a 50% stake in four assets from Bharti Enterprises. This includes commercial properties totaling 3.3 million square feet, valued at Rs 6,000 crore.

  • Titagarh Rail Systems rises sharply as its net profit surges by 63.7% YoY to Rs 78.9 crore in Q4FY24, helped by a fall in finance costs. Revenue increases by 8.8% YoY to Rs 1,067.1 crore, driven by an improvement in the freight rail systems segment. It appears in a screener of stocks with increasing net profit for the past four quarters.

  • Jindal Stainless falls sharply as its net profit plunges by 34.6% YoY to Rs 500.7 crore in Q4FY24, due to higher employee benefits, finance, stores & spares consumed, and power & fuel expenses. Revenue declines by 3% YoY to Rs 9,509 crore, caused by lower nickel prices and weak exports. It features in a screener of stocks with growing costs YoY for long-term projects.

  • Nifty 50 was trading at 22,292.60 (92.1, 0.4%), BSE Sensex was trading at 73,338.24 (351.2, 0.5%) while the broader Nifty 500 was trading at 20,831.30 (89.5, 0.4%).

  • Market breadth is surging up. Of the 1,885 stocks traded today, 1,529 were gainers and 298 were losers.

Riding High:

Largecap and midcap gainers today include Honeywell Automation India Ltd. (55,737.50, 13.1%), Hindustan Aeronautics Ltd. (4,603.70, 10.1%) and Oberoi Realty Ltd. (1,711.15, 8.7%).

Downers:

Largecap and midcap losers today include Bandhan Bank Ltd. (179.60, -5.4%), Mankind Pharma Ltd. (2,092.55, -4.5%) and Canara Bank (113.70, -4.5%).

Volume Shockers

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

Top high volume gainers on BSE included Honeywell Automation India Ltd. (55,737.50, 13.1%), Hindustan Aeronautics Ltd. (4,603.70, 10.1%) and NCC Ltd. (273.55, 8.8%).

Top high volume losers on BSE were Bandhan Bank Ltd. (179.60, -5.4%), Mankind Pharma Ltd. (2,092.55, -4.5%) and Kama Holdings Ltd. (2,474.90, -2.0%).

FDC Ltd. (472.80, 3.9%) was trading at 11.1 times of weekly average. Carborundum Universal Ltd. (1,646.20, 7.4%) and 3M India Ltd. (29,999, 4.8%) were trading with volumes 10.6 and 8.2 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

37 stocks made 52 week highs,

Stocks touching their year highs included - Adani Power Ltd. (640.35, 0.1%), Ashok Leyland Ltd. (206.65, 2.6%) and Astral Ltd. (2,273.05, 2.7%).

11 stocks climbed above their 200 day SMA including Sunteck Realty Ltd. (446, 4.5%) and eClerx Services Ltd. (2,401.90, 4.3%). 7 stocks slipped below their 200 SMA including Sundram Fasteners Ltd. (1,185.30, -2.1%) and PI Industries Ltd. (3,608.30, -1.5%).