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Trendlyne Marketwatch
19 Jun 2024
Market closes lower, Ami Organics' board approves raising Rs 500 crore via QIP
By Trendlyne Analysis

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Riding High:

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

Downers:

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

Volume Shockers

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

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

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

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

BSE 500: highs, lows and moving averages

43 stocks hit their 52-week highs,

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

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

 
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The Baseline
19 Jun 2024
By Satyam Kumar

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

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

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

Companies with high EPS growth estimates are trading at expensive valuations

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

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

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

PSU companies with high EPS growth estimates trade at cheaper valuations

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Riding High:

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

Downers:

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

Crowd Puller Stocks

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

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

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

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

BSE 500: highs, lows and moving averages

75 stocks took off, crossing 52-week highs,

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

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

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

1. KNR Constructions:

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

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

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

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

2. Raymond:

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

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

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

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

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

3. GAIL (India): 

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

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

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

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

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

4. Cummins India:

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

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

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

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

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

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

5. Indian Energy Exchange:

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

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

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

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

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

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

 
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Trendlyne Marketwatch
14 Jun 2024
Market closes higher, Jindal Stainless acquires a 46% stake in Chromeni Steels for Rs 277.9 crore
By Trendlyne Analysis

Nifty 50 closed at 23,465.60 (66.7, 0.3%), BSE Sensex closed at 76,992.77 (181.9, 0.2%) while the broader Nifty 500 closed at 22,214.30 (140, 0.6%). Of the 2,140 stocks traded today, 1,228 were gainers and 888 were losers.

Indian indices maintained the gains from the afternoon session and closed in the green. The volatility index, Nifty VIX, dropped by 5% and closed at 12.8 points. Ambuja Cements acquired a 100% stake in Penna Cement at an enterprise value of Rs 10,442 crore. This acquisition increased the company's capacity by 14 MTPA to 89 MTPA.

Nifty Midcap 100 and Nifty Smallcap 100 closed higher following the benchmark index. Nifty Auto and Nifty Metal closed higher than Thursday’s closing level. According to Trendlyne’s sector dashboard, healthcare equipment & supplies emerged as the top-performing sector of the day, with a rise of over 3.8%.

Most European indices trade in the red. US indices futures trade lower, indicating a negative start. Japan’s industrial production in April contracted by 0.9% MoM against estimates of a 0.1% decline.

  • ABB India sees a short buildup in its June 27 future series as its open interest rises 15.3% with a put-call ratio of 0.7.

  • Godfrey Phillips' Executive Director, Samir Modi, reportedly seeks police protection after accusing his mother of orchestrating an attack on him amid a dispute over estate distribution following the death of the family patriarch six years ago.

  • Signatureglobal's wholly-owned subsidiary, Sternal Buildcon, is set to buy 3.8 acres of land on the Dwarka Expressway in Gurugram. The land has a potential development area of approximately 6 lakh sq. ft.

  • Kolte Patil Developers' CEO Rahul Talele tenders his resignation, effective June 14. The company appoints Atul Bohra as his successor.

  • Citigroup Global Markets Mauritius sells a 0.1% stake (5.2 lakh shares) to Societe Generale in InterGlobe Aviation, worth approx Rs 224 crore, in a block deal on Thursday. The transaction was executed at an average price of Rs 4,300.4 per share.

  • According to Moody's Ratings, India is expected to maintain its position as the fastest-growing economy, keeping up the momentum driven by domestic factors from last year. The ratings agency foresees policy consistency post the general election, with continued emphasis on infrastructure growth and promotion of private sector investments.

  • DCX Systems surges after receiving multiple orders totaling Rs 32.2 crore from domestic and international clients to supply cable and wire harness assemblies. The orders are expected to be fulfilled within the next 12 months.

  • Sectors like telecommunications equipment, general industrials, fertilizers, realty, and cement & construction rise more than 8% in the past week.

  • Zydus Lifesciences is rising as it receives approval from the US FDA for its Azilsartan Medoxomil and Chlorthalidone tablets. The tablets, used to treat high blood pressure, have an estimated annual sales of $77.9 million in the US.

  • Arnab Banerjee, COO of Ceat, expects to maintain leadership in the 2-wheeler segment. He projects a volume growth in high single-digits to low double-digits with margins ranging between 13-14% for the next few quarters. Banerjee also anticipates raw material prices to go up by 5-5.5% and indicates a price hike of 3-3.5%.

  • National Aluminium Co signs a mining lease with the Odisha state government over an area of 698 hectares for bauxite mines in the Koraput district. These mines can produce 3.5 million tonnes of bauxite each year and are estimated to hold reserves of 111 million tonnes, which could support mining operations for 32 years.

  • Jindal Stainless acquires the remaining 46% stake in Chromeni Steels for Rs 277.9 crore, making it a wholly owned subsidiary, effective June 14. The company earlier announced acquisitions on May 1 and June 4, 2024.

  • Tata Elxsi rises as it collaborates with Red Hat to monetize applications and reduce operational expenditures by streamlining 5G network operations for telecommunications and enterprises.

  • India's WPI inflation grows to 2.6% in May from 1.3% in April, marking a 15-month high from February 2023. This rise is due to higher prices of food articles, manufacture of food products, crude petroleum & natural gas, and mineral oils. WPI food index increases to 7.4% in May from 5.5% in April.

  • Shipping Corp rises sharply as it receives an in-principle approval from the NITI Aayog to establish a wholly-owned subsidiary at GIFT City, Gujrat.

  • BNP Paribas Financial Markets sells a 2.3% stake (5.8 crore shares) in L&T Finance, worth approx Rs 986.1 crore, in a block deal on Thursday. BC Investments Vi and BC Asia sell 0.4% and 0.8% stakes, respectively. Meanwhile, Morgan Stanley Asia Singapore PTE and Larsen & Toubro pick up 1.4% and 0.5% stakes in the company.

  • Foreign institutional investors invest Rs 8,960 crore in the equity market over the past week, according to Trendlyne's FII dashboard. However, index options witness the highest outflow of Rs 1.2 lakh crore from FIIs. Meanwhile, mutual funds were net buyers of equity worth Rs 6,352.5 crore during the same period.

  • Non-banking finance company Akme Fintrade (Aasaan Loans) sets the price band for its IPO at Rs 114-120 per share. The issue size is Rs 132 crore and is completely a fresh issue. The issue opens on June 19.

  • Havells India is set to expand the manufacturing capacities of air conditioners at Ghiloth and Sricity to 15 lakh units per annum. The proposed investment for the expansion is around Rs 50-60 crore.

  • Vodafone Idea's board approves a preferential issue of equity shares up to 166 crore shares, worth Rs 2,458 crore, via a preferential issue to Nokia Solutions & Networks India and Ericsson India.

  • Rites rises sharply as it signs a memorandum of understanding (MoU) with Delhi Metro Rail Corp (DMRC) for operations and management of metro projects in India and abroad.

  • CLSA retains its 'Buy' rating on Prestige Estates Projects with a higher target price of Rs 2,320. The brokerage expects the operating cash flow will substantially support the company's capex and project pipeline growth. It believes that the firm's valuation is still at a discount to its peers.

  • Suven Pharmaceuticals rises as it plans to acquire 100% equity shares of Sapala Organics. The company expects to complete the acquisition of a 67.5% stake in Q2FY25 for Rs 229.5 crore.

  • Anil Kumar Goel sells a 0.9% stake in Dhampur Sugar Mills for approx Rs 14.8 crore in a bulk deal. He also sells a 0.7% stake in Dwarikesh Sugar Industries for approx Rs 9.9 crore.

  • Ambuja Cements is rising as it acquires a 100% stake in Penna Cement at an enterprise value of Rs 10,442 crore. This acquisition increases the company's capacity by 14 MTPA to 89 MTPA.

  • Puravankara rises sharply as its board of directors approves issuing shares worth Rs 1,000 crore through a qualified institutional placement (QIP).

Riding High:

Largecap and midcap gainers today include ABB India Ltd. (9,020, 6.8%), Schaeffler India Ltd. (4,825.60, 6.7%) and Life Insurance Corporation of India (1,066.85, 6.4%).

Downers:

Largecap and midcap losers today include MphasiS Ltd. (2,408.85, -1.9%), GlaxoSmithKline Pharmaceuticals Ltd. (2,654.85, -1.7%) and Hindustan Zinc Ltd. (661.90, -1.6%).

Volume Shockers

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

Top high volume gainers on BSE included Mazagon Dock Shipbuilders Ltd. (3,877.55, 14.4%), Chemplast Sanmar Ltd. (621.50, 11.8%) and SKF India Ltd. (6,921.20, 11.6%).

Top high volume loser on BSE was La Opala RG Ltd. (317.25, -3.5%).

ICICI Lombard General Insurance Company Ltd. (1,730.90, 4.1%) was trading at 15.8 times of weekly average. Craftsman Automation Ltd. (4,700, 6.4%) and JK Paper Ltd. (490.80, 10.0%) were trading with volumes 12.7 and 8.3 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

77 stocks overperformed with 52-week highs,

Stocks touching their year highs included - Ambuja Cements Ltd. (677.20, 1.9%), Ashok Leyland Ltd. (239.84, 1.3%) and Bajaj Auto Ltd. (9,961.75, 0.4%).

16 stocks climbed above their 200 day SMA including Craftsman Automation Ltd. (4,700, 6.4%) and Restaurant Brands Asia Ltd. (111.13, 4.0%). 7 stocks slipped below their 200 SMA including MphasiS Ltd. (2,408.85, -1.9%) and Deepak Fertilisers & Petrochemicals Corporation Ltd. (593.60, -1%).

 
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Trendlyne Marketwatch
13 Jun 2024
Market closes higher, Bondada Engineering bags a Rs 939.4 crore from NLC India
By Trendlyne Analysis

Nifty 50 closed at 23,398.90 (76.0, 0.3%), BSE Sensex closed at 76,810.90 (204.3, 0.3%) while the broader Nifty 500 closed at 22,074.30 (113.4, 0.5%). Of the 2,165 stocks traded today, 1,303 showed gains, and 833 showed losses.

Indian indices maintained the gains from the afternoon session and closed in the green. The volatility index, Nifty VIX, dropped by 6.2% and closed at 13.5 points. Larsen & Toubro bagged a Rs 2,500-5,000 crore order from ONGC to set up four wellhead platforms, a 140 km long pipeline and associated topside modifications at Tapti Daman block off the west coast of India.

Nifty Midcap 100 and Nifty Smallcap 100 closed higher following the benchmark index. Nifty Realty and Nifty IT closed higher than Wednesday’s closing level. According to Trendlyne’s sector dashboard, realty emerged as the top-performing sector of the day, with a rise of over 2.1%.

Most European indices trade in the red. US indices futures trade mixed, indicating a cautious start. Eurozone’s industrial production in April contracted by 0.1% MoM against estimates of 0.1% growth.

  • Money flow index (MFI) indicates that stocks like Sunteck Realty, Coromandel International, Emami, and Bikaji Foods International are in the overbought zone.

  • Sharekhan maintains its 'Buy' call on CESC with a higher target price of Rs 170 per share. This indicates a potential upside of 13.7%. The brokerage believes the revival in renewable energy capex and the turnaround of the distribution business will drive earnings growth. It expects the company's revenue to grow at a CAGR of 6.1% over FY25-26.

  • Venus Remedies rises sharply after the company wins a contract from UNICEF for its antibiotic product, Ceftriaxone 1mg, in the Beta Lactam antibiotics tender.

  • The Adani Group allocates $3 billion for cement sector acquisitions, aiming to dominate India's cement industry. The group is reportedly eyeing Hyderabad's Penna Cement, Gujarat's Saurashtra Cement, Jaiprakash Associates' cement division, and Vadraj Cement from ABG Shipyard.

  • Reliance Industries' subsidiary, Jio Platforms' joint venture with Luxemburg's SES receives approval from the Indian space regulator to operate satellites. This will help the JV to set up a gigabit fibre internet in the country.

  • Larsen & Toubro rises as its hydrocarbon business bags a Rs 2,500-5,000 crore order from ONGC to set up four wellhead platforms, 140 km long pipeline and associated topside modifications at Tapti Daman block off the west coast of India.

  • Sugar stocks like Shree Renuka Sugars, Bajaj Hindusthan Sugar, Dalmia Bharat Sugar, and Bannari Amman Sugars rise more than 7.5% in trade as the government considers raising the minimum selling price of sugar. The broader sugar industry surges over 6% today.

  • Power Mech Projects rises sharply as more than 2.7 lakh shares, amounting to Rs 131 crore, reportedly change hands in a block deal.

  • Realty stocks like DLF, Macrotech Developers, Godrej Properties, Prestige Estates Projects, and Oberoi Realty are rising in trade. The broader Nifty Realty index is also trading in the green, and touches its 52-week high of 1,122.2 today.

  • KIOCL is surging as the Steel Ministry reportedly signs to commence operations at the Devadari iron ore mine. The company plans to procure around 3 million tonnes of iron in FY25.

  • Reports suggest that 5.2 lakh shares of InterGlobe Aviation (IndiGo), amounting to Rs 224 crore, change hands in a block deal.

  • Whirlpool rises to touch its 52-week high of Rs 1,837.8 per share, boosted by a partnership with Hindustan Unilever's Surf Excel brand. The collaboration aims to deliver superior cleaning performance and convenience to households.

  • Exide Industries surges to its all-time high of Rs 549.9 per share as it invests Rs 75 crore in its subsidiary, Exide Energy Solutions. This takes the company's total investment in its subsidiary to Rs 2,452.2 crore.

  • Saksoft surges as it signs an agreement to acquire 100% ownership in Augmento Labs for Rs 100 crore. This will strengthen Saksoft's presence in the digital engineering space and provide access to enterprise clients.

  • India’s Index of Industrial Production (IIP) grows by 5% in April, compared to 4.9% in March, led by growth in the mining, manufacturing, and electricity sectors.

  • L&T Finance rises sharply as 8.8 crore shares (3.5% stake), amounting to Rs 1,500 crore, reportedly change hands in a block deal. Bain Capital & BNP Paribas are the likely sellers in the transaction.

  • One97 Communications (Paytm) rises sharply as it partners with Samsung to set up Samsung Wallet, which will be used for flight, bus, movie, and event ticket bookings.

  • Sobha rises as its board approves the rights issue of 1.2 crore shares worth up to Rs 2,000 crore. The record date of the issue is set as June 19.

  • India’s CPI inflation eases marginally to a year low of 4.8% in May. Food inflation remains flat at 8.7%, while fuel and light inflation contracts to 3.8%.

  • Gensol Engineering rises sharply to its 5% upper circuit as it bags a Rs 2,680 crore order from Gujarat Urja Vikas Nigam to set up 250 MW/500 MWh standalone battery energy storage systems (BESS). The project will supply electricity on an “On-Demand” basis to Gujarat State's DISCOMs for the next 12 years.

  • 360 One Wam acquires Moneygoals Solutions and Banayantree Services for Rs 85.8 crore. Moneygoals Solutions provides business advisory, product management, and other business support services, while Banayantree Services is into digital distribution of financial products.

  • Torrent Pharmaceuticals is falling as it receives Form 483 with five observations from the US FDA after conducting a pre-approval inspection (PAI) and a good manufacturing practices (GMP) inspection at its facility in Gujarat.

  • Bondada Engineering rises sharply as it bags an order worth Rs 939.4 crore from NLC India to set up a 600 MW grid-connected solar power project in Gujarat, including operations and maintenance, for three years.

Riding High:

Largecap and midcap gainers today include Oracle Financial Services Software Ltd. (9,658, 10.5%), One97 Communications Ltd. (428.05, 6.4%) and Cholamandalam Investment & Finance Company Ltd. (1,436.10, 5.7%).

Downers:

Largecap and midcap losers today include Marico Ltd. (611.25, -2.9%), APL Apollo Tubes Ltd. (1,539.35, -2.6%) and Hindustan Zinc Ltd. (672.40, -2.3%).

Crowd Puller Stocks

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

Top high-volume gainers on BSE included Shree Renuka Sugars Ltd. (49.30, 11.6%), Delta Corp Ltd. (135.28, 11.4%) and KIOCL Ltd. (476.85, 11.4%).

Top high volume loser on BSE was Marico Ltd. (611.25, -2.9%).

Archean Chemical Industries Ltd. (658.95, 5.9%) was trading at 15.2 times of weekly average. Usha Martin Ltd. (414.80, 9.7%) and DCM Shriram Ltd. (1,057.40, 6.7%) were trading with volumes 10.8 and 10.3 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

62 stocks overperformed with 52-week highs,

Stocks touching their year highs included - Aegis Logistics Ltd. (841.10, 9.7%), Ambuja Cements Ltd. (664.50, -0.6%) and BASF India Ltd. (4,897.90, 1%).

19 stocks climbed above their 200 day SMA including Shree Renuka Sugars Ltd. (49.30, 11.6%) and Archean Chemical Industries Ltd. (658.95, 5.9%). 4 stocks slipped below their 200 SMA including APL Apollo Tubes Ltd. (1,539.35, -2.6%) and Century Plyboards (India) Ltd. (680, -0.2%).

 
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Trendlyne Marketwatch
12 Jun 2024
Market closes higher, ICICI Securities keeps its 'Buy' rating on Birla Corp

Nifty 50 closed at 23,322.95 (58.1, 0.3%), BSE Sensex closed at 76,606.57 (150.0, 0.2%) while the broader Nifty 500 closed at 21,960.95 (109.0, 0.5%). Of the 2,168 stocks traded today, 1,426 were gainers and 714 were losers.

Indian indices maintained the gains from the afternoon session and closed in the green. The volatility index, Nifty VIX, dropped by 2.6% and closed at 14.4 points. Tata Communications signs a five-year global broadcasting services deal for the World Athletics Series, including the World Championships in Tokyo in 2025.

Nifty Smallcap 100 and Nifty Midcap 100 closed higher following the benchmark index. Nifty Pharma and Nifty Media closed higher than Tuesday’s closing level. According to Trendlyne’s sector dashboard, telecommunication equipment emerged as the top-performing sector of the day, with a rise of over 2.2%.

Most European indices trade in the green. US indices futures trade higher, indicating a positive start. Britain's GDP in April was stagnant MoM, and grew by 0.6% compared to April 2023.

  • Relative strength index (RSI) indicates that stocks like Emami, Coromandel International, Endurance Technologies, and Bikaji Foods International are in the overbought zone.

  • LTIMindtree rises as it announces the inauguration of its regional headquarters in Riyadh as a part of its expansion in the Kingdon of Saudia Arabia (KSA) and the Middle East.

  • ICICI Securities keeps its 'Buy' rating on Birla Corp with a lower target price of Rs 1,870 per share. This indicates a potential upside of 22.8%. The brokerage expects improved profitability on the back of govt incentives entitled to the Muktaban facility, lower fuel prices, increasing premium products, and improvement in capacity utilisation. It expects the company's net profit to grow at a CAGR of 50.6% over FY25-26.

  • Ola Electric receives SEBI approval for its Rs 7,250 crore IPO, according to reports. The IPO will consist of a fresh issue worth Rs 5,500 and an offer for sale of approx. Rs 1,750 crore. The company plans its stock market debut within a month.

  • Tube Investments of India and Tl Clean Mobility enter into an agreement with South Asia Growth lnvest and South Asia EBT Trust to acquire convertible preference shares for Rs 160 crore in Tl Clean Mobility.

  • Tata Communications rises as it signs a five-year global broadcasting services deal for the World Athletics Series, including the World Championships in Tokyo in 2025. The company will provide customized live content to broadcasters worldwide.

  • LE Travenues Technology's Rs 740.1 crore IPO gets bids for 44.7X the available 4.4 crore shares on offer on the third day of bidding. The retail investor quota gets bids for 40.7X the available 79.6 lakh shares on offer.

  • Haldiram Snacks is reportedly considering an initial public offering (IPO) after its attempt to sell its stake to foreign investors failed due to a valuation mismatch. The IPO discussions are in the early stages, and the controlling shareholders will determine the offer price and proceed with the sale accordingly.

  • Dredging Corp of India` hits an all-time high of Rs 1,129.2 as its bags an order worth Rs 2,015.9 crore from Syama Prasad Mookerjee Port Authority for maintenance dredging of the Hooghly's shipping channel. The contract is for a period of five years.

  • Vodafone Idea gets in-principle approval for a Rs 14,000 crore loan from a State Bank of India-led consortium of banks. The funds will be used to repay operational creditors, roll out the 5G network, and bid for additional spectrum.

  • Brigade Enterprises announces plans to invest Rs 8,000 crore in Chennai by 2030 to expand its business in the city by launching residential, office, retail, and hospitality projects with over 15 million square feet.

  • The World Bank projects India’s GDP to grow at an average of 6.7% from FY25-27, driven by strong domestic demand, and a surge in investment and services activity.

  • Axis Direct upgrades KEC International to 'Buy' from 'Hold' with a higher target price of Rs 845 per share. This indicates a potential upside of 2.7%. The brokerage believes the company's strong order book and L1 position offer healthy revenue visibility for the next two years. It expects the company's revenue to grow at a CAGR of 9% over FY25-26.

  • AGS Transact Technologies rises sharply as it begins deploying 1,350 ATMs from a State Bank of India order won in FY24, with completion expected by H1FY25.

  • Nifty 50 hits an all-time high of 23,442 today. The benchmark index surges 7% over the past week.

  • Union Bank of India is rising as its board of directors approves the fundraising of Rs 10,000 crore via qualified institutional placement (QIP), bonds, and other modes in multiple tranches.

  • Jefferies has a 'Buy' rating on GMR Airports Infrastructure with a target price of Rs 100. The brokerage notes that the expansion of Delhi and Hyderabad airports will aid traffic growth and non-aero revenues. It adds that the company has filed a new tariff application for Delhi International Airport, to be implemented by Q4FY25, and notes the management's focus on developing its airport platform strategy.

  • Rites is rising as it signs a memorandum of understanding (MoU) with Eastern Railway's Andal Diesel Shed, West Bengal, to set up a framework for the repair and maintenance of diesel-electric locomotives.

  • Castrol India’s Managing Director Sandeep Sangwan resigns, effective October 31. The company appoints Kedar Lele as the new MD for five years, effective November 1, 2024.

  • B L Kashyap & Sons wins orders worth Rs 1,021 crore. Orders include the construction of a hotel structure and shell work from Sattva Homes and composite steel structural work from DLF City Centre.

  • VP Nandakumar, MD & CEO of Manappuram Finance, expects to launch the Asirvad MFI IPO in the next 2-3 months. He projects around 10-12% gold loan growth for FY25 and expects the non-gold growth momentum to continue. Nandakumar highlights that AUM growth for Q4FY24 stood at 18.7% YoY, and the calculated net interest margin(NIM) at 15%.

  • Media stocks like Sun TV Network, Zee Entertainment Enterprises, PVR INOX, Network18 Media & Investments, and TV18 Broadcast are rising in trade. The broader sectoral index, Nifty Media, is also trading in the green.

  • TVS Supply Chain Solutions surges as it inks a deal with Daimler Truck AG's arm, Daimler Truck South East Asia, for integrated supply chain solutions service in Singapore.

  • Ashish Kacholia sells a 2.9% stake in Ador Welding for approx Rs 48.7 crore in a bulk deal on Tuesday.

  • HCL Technologies rises sharply as it extends its partnership with Germany's apoBank with an estimated value of $278 million (approx. Rs 2,322.8 crore) for the next 7.5 years. The company also extends its engineering research and development partnership with Olympus.

Riding High:

Largecap and midcap gainers today include Max Healthcare Institute Ltd. (870.50, 8.5%), One97 Communications Ltd. (402.50, 5.8%) and LIC Housing Finance Ltd. (715.40, 5.2%).

Downers:

Largecap and midcap losers today include APL Apollo Tubes Ltd. (1,580.85, -3.2%), Pidilite Industries Ltd. (3,078.50, -3.1%) and Marico Ltd. (629.50, -2.8%).

Movers and Shakers

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

Top high volume gainers on BSE included Sunteck Realty Ltd. (579.15, 9.6%), Max Healthcare Institute Ltd. (870.50, 8.5%) and Privi Speciality Chemicals Ltd. (1,264.10, 7.3%).

Top high volume loser on BSE was Prism Johnson Ltd. (160.82, -2.0%).

Tanla Platforms Ltd. (959.05, 4.0%) was trading at 12.0 times of weekly average. Tata Teleservices (Maharashtra) Ltd. (80.96, 6.2%) and Trident Ltd. (40.48, 7.0%) were trading with volumes 9.1 and 8.6 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

47 stocks overperformed with 52-week highs,

Stocks touching their year highs included - Ashok Leyland Ltd. (238.04, 0.0%), Bajaj Auto Ltd. (9,904.25, 0.9%) and BASF India Ltd. (4849.40, 3.3%).

17 stocks climbed above their 200 day SMA including Privi Speciality Chemicals Ltd. (1,264.10, 7.3%) and Trident Ltd. (40.48, 7.0%). 3 stocks slipped below their 200 SMA including Century Plyboards (India) Ltd. (681.65, -1.3%) and PCBL Ltd. (244.01, -1.0%).

 
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The Baseline
12 Jun 2024
By Satyam Kumar

Both institutional and retail investors rely on analyst forecasts of the future outlook for companies, and the direction of their share prices. But unexpected positive or negative news (such as the June 4 election results) can also cause stock prices to shift. For instance, when ICICI Bank reported a positive revenue surprise of 66.1% on Saturday, April 27, its stock price in the next trading session went up by 4.7%.

Keeping track of predictions by institutional analysts is not easy. This is where Trendlyne’s Forecaster helps – it keeps track of analyst estimates for the company’s financials and target prices, providing a consensus. In case the company reports better or worse financials than expected, Forecaster keeps track of this in the surprises section.

In this Chart of the Week, we look at companies that delivered either positive or negative revenue surprises in FY24. We use a screener for stocks that posted surprises greater than 15% in their FY24 results. In the interactive chart above, green bubbles represent positive surprises, while red bubbles indicate negative surprises.

Financial firms beat revenue estimates, driven by demand for retail loans

ICICI Bank’s revenue for FY24 exceeded estimates, thanks to loan growth from the retail segment over the past year. Revenue from the retail segment surged 29.7% YoY in FY24, and the treasury segment also grew by 34.4% YoY, as demand for treasuries increased with high interest rates. ICICI Bank outperformed estimates by 66.1%.

Retail-focused NBFCPoonawala Fincorp saw its total assets under management rise by 55% YoY to Rs 25,003 crore, with disbursements more than doubling in FY24. To further boost growth in the retail segment, the company launched a co-branded credit card in partnership with IndusInd Bank. Similarly, another NBFC, Piramal Enterprises posted a revenue growth of 12% YoY at Rs 10,020.3 crore, beating Forecaster estimates by 31.1%.

Meanwhile, two insurance players, SBI Life Insurance Company and Max Financial Services (MFSL) beat revenue estimates for FY24 by 21.9% and 20.1% respectively. These companies benefited from rising awareness which boosted insurance protection demand.

Holding companies, which derive a major chunk of revenue from their insurance business, also reported estimate-beating revenue. Aditya Birla Capital and Bajaj Finserv posted revenue growth of 14.4% and 34.5% in FY24 beating estimates by 27.9% and 21.9% respectively.

Realty developers see robust growth in presales, but miss estimates due to delayed completions

Real estate developer Sobha saw its presales rise by 28% YoY to Rs 6,600 crore, driven by a 19% improvement in realisation to Rs 11,000 per square foot and a 7% increase in volumes. However, the company’s annual revenue of Rs 3,097 crore in FY24 was 21.9% below Forecaster estimates because of delays in project completion.

Mahindra Lifespace Developers’ revenue in FY24 declined 57.7% YoY to Rs 279.1 crore, missing the Forecaster estimate by 50.8%. The Mahindra Group’s real estate arm witnessed its net profit decline 3.1% YoY due to higher construction expenses and inventory buildup from under-construction projects.

Similarly, realty companies Signatureglobal (India) and Sunteck Realty also missed Forecaster estimates by 38.4% and 51.4% respectively.

Industry outperformer TVS Motors beat Forecaster estimates, while JBM Auto misses as its components business lags

Two-wheeler manufacturer TVS Motor Company saw its annual revenue in FY24 rise by 22.2% YoY, beating Forecaster estimates by 24.2%. The company outperformed its industry with 34% and 17% YoY growth in the domestic motorcycle and scooter segments, respectively, compared to industry growth of 14% and 13% YoY driven by demand for premium vehicles. Analysts at Axis Securities expect this momentum to continue, buoyed by the launch of multiple products across all its segments over the next few quarters.

CEO of TVS Motor Company, K.N. Radhakrishnan, said, "The rural market is slowly and steadily changing; I'm able to see some recovery happening." He expects this recovery because of forecasts of a normal monsoon this year.

Meanwhile, auto components maker JBM Auto fell short of analyst expectations, with annual revenue missing Forecaster estimates by 22.3%. This shortfall was due to a 2.3% YoY decline in revenue from its component division, totalling Rs 2,978.7 crore in FY24. However, the company in the past few years has emerged as a major player in the electric bus domain. Its electric bus segment, which contributed Rs 1,741.2 crore in FY24, witnessed growth of 217% YoY.

 
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Trendlyne Marketwatch
11 Jun 2024
Markets closes flat, NBCC (India) wins multiple orders worth Rs 878.2 crore
By Trendlyne Analysis

Nifty 50 closed at 23,264.85 (5.7, 0.0%), BSE Sensex closed at 76,456.59 (-33.5, 0.0%) while the broader Nifty 500 closed at 21,852 (43.8, 0.2%). Market breadth is in the green. Of the 2,169 stocks traded today, 1,377 showed gains, and 764 showed losses.

Indian indices pared the gains from the afternoon session and closed flat. The volatility index, Nifty VIX, dropped by 9.8% and closed at 14.8 points. Raymond's real estate arm, Raymond Realty, bags a Rs 2,000 crore redevelopment project in Bandra (East), Mumbai. Raymond Realty had also signed three joint development agreements in Bandra, Sion, and Mahim, with an estimated revenue potential of over Rs 5,000 crore.

Nifty Smallcap 100 and Nifty Midcap 100 closed higher with the benchmark index closing flat. Nifty Realty and Nifty Media closed higher than Monday’s closing level. According to Trendlyne’s sector dashboard, telecommunications equipment emerged as the top-performing sector of the day, with a rise of over 4.1%.

Most European indices trade in the red. US indices futures trade lower, indicating a negative start. Global rating agency, Moody’s warned that France’s outlook could be cut to “negative” from “stable” due to potential political instability leading to credit risk. The warning comes after France announced snap elections later this month.

  • GMR Airports Infrastructure sees a short buildup in its June 27 future series as its open interest rises 16.5% with a put-call ratio of 0.6.

  • Edelweiss retains its 'Buy' call on Royal Orchid Hotels with an upgraded target price of Rs 477 per share. This indicates a potential upside of 30.6%. The brokerage anticipates revenue growth driven by improved occupancy, the addition of rooms, expansion in the restaurant & banquet portfolio, and a revival in large-scale weddings. It expects the company's revenue to grow at a CAGR of 16.3% over FY25-26.

  • NBCC (India) surges as it wins multiple orders worth Rs 878.2 crore. The orders include the development of land parcels for Kochi Metro Rail, the construction of a Boys College for Hindu College, an office and training institute for ICSI, and a centralized core repository for Oil India.

  • Persistent Systems enters a partnership with Google Cloud to expand its presence in the US, India, UK, and Australia. The companies will develop industry-specific solutions to promote the adoption of generative AI using Google Cloud's Gemini models and other technologies.

  • Sameer Khetarpal, CEO and MD of Jubilant Foodworks, notes that India has the highest number of Domino's outlets (2,000 outlets) in a country outside of the US. He adds that the company's margins have bottomed out and expects like-for-like growth momentum to continue in Q1. He adds that Jubilant has extended the free delivery option to the World Cup season as well.

  • LE Travenues Technology's Rs 740.1 crore IPO gets bids for 5.9X the available 4.4 crore shares on offer on the second day of bidding. The retail investor quota gets bids for 14.4X the available 79.6 lakh shares on offer.

  • Adani Enterprises rises as its subsidiary, Adani Defence & Aerospace, signs an agreement with EDGE Group to set up research & development (R&D) facilities in India, UAE and other global markets. As per the agreement, the companies will develop missiles, weapons, unmanned platforms and cyber systems.

  • IRB Infrastructure Developers falls sharply as 41.2 crore shares (6.8% stake), amounting to Rs 2,656 crore, reportedly change hands in a block deal. Cintra Investments, an infra subsidiary of Dutch major Ferrovial, is the likely seller in the transaction.

  • According to a poll of economists, India’s retail inflation is expected to remain flat at 4.8% in May. Economists expect food inflation to remain elevated due to higher prices of vegetables, cereals, and pulses.

  • HG Infra Engineering hits an all-time high of Rs 1,768.7 as its arm HG Solar Projects, incorporates a subsidiary HG Jaipur Solar Project to carry out solar power business.

  • PNC Infratech falls as the Central Bureau of Investigation (CBI) conducts searches at the company's corporate office, other offices, and the residences of MD Yogesh Kurnar Jain and Whole-time Director Talluri Raghupati Rao. Jain is also summoned before the CBI Office, details of which are pending.

  • JBM Auto inks an agreement with MUON India (a Macquarie Group company) to deploy over 2,000 electric buses over the next few years.

  • Sanjai Kumar, the Chief Managing Director of RailTel Corp of India, highlights the company's total orderbook of Rs 24,700 crore at the FY24 end, of which Rs 2,000 crore will be executed in FY25. He projects revenue growth of more than 30% for FY25, with margins of around 16%. He adds that the company's Kavach system (a cab signaling train control system with anti-collision features) has a revenue potential of Rs 24,000-5,000 crore over 3-4 years.

  • Raymond's real estate arm, Raymond Realty, bags a Rs 2,000 crore redevelopment project in Bandra (East), Mumbai. Raymond Realty had also signed three joint development agreements in Bandra, Sion, and Mahim, with an estimated revenue potential of over Rs 5,000 crore.

  • Suzlon Energy rises sharply as it bags an order to supply 33 wind turbines with a rated capacity of 3 MW each for a 104 MW wind energy project by AMPIN Energy Transition in Rajasthan.

  • Mahindra & Mahindra's overall auto wholesales rise 16.7% YoY to 71,682 units in May. Domestic passenger vehicle wholesales grow by 17.4% YoY and total exports improve by 2.1% YoY.

  • Monthly net inflows through SIPs surge to a new peak of Rs 20,904 crore in May, marking the 11th consecutive month of record highs, as per data from the Association of Mutual Funds in India (AMFI). However, new SIP accounts registered stood at 49.7 lakh, down from 63.6 lakh recorded the previous month.

  • Realty stocks like Mahindra Lifespace Developers, Prestige Estates Projects, Oberoi Realty and DLF are rising in trade. All constituents of the broader Nifty Realty index are also trading in the green, helping it to touch its 52-week high of 1,104.2.

  • InterGlobe Aviation falls as reports suggest that promoter entity InterGlobe Enterprises, is likely to sell a 2% stake at a minimum price of Rs 4,266 per share, amounting to Rs 3,293.3 crore.

  • PTC Industries surges to its all-time high of Rs 11,753.9 per share as it joins the government's special purpose vehicle (SPV), Advanced Materials (Defence) Testing Foundation, under the Defence Testing Infrastructure Scheme (DTIS).

  • The Indian unit of Hyundai Motor is likely to file a draft prospectus with SEBI in the next two weeks, say reports. The company aims to raise around $2.5 billion (approx. Rs 20,875 crore), with the launch planned for September-October this year.

  • Rail Vikas Nigam (RVNL) rises as its consortium with Siemens wins an order worth Rs 394.2 crore from Bangalore Metro Rail Corp to develop rail traction electrification, including traction substations, auxiliary substations, and SCADA systems. RVNL also gets a Rs 138.5 crore order from Central Railway to upgrade the electric traction system in the Amla-Nagpur section.

  • The Reserve Bank of India (RBI) reportedly rejects Edelweiss Financial Services' proposal to reappoint Rajkumar Bansal as the Managing Director and Chief Executive Officer (CEO) of its subsidiary, Edelweiss ARC.

  • Transformers & Rectifiers (India) rises as it launches a qualified institution placement to raise Rs 500 crore. The floor price of the issue is Rs 699.9 per share.

  • NLC India rises sharply as its board of directors approves raising a foreign currency loan of $600 million (approx. Rs 5,007.1 crore) through external commercial borrowings (ECB). The board also approves investing Rs 994.5 crore in its subsidiary, NLC India Renewables, in exchange for equity shares.

  • Nifty 50 was trading at 23,247.60 (-11.6, -0.1%), BSE Sensex was trading at 76,680.90 (190.8, 0.3%) while the broader Nifty 500 was trading at 21,824.30 (16.1, 0.1%).

  • Market breadth is highly positive. Of the 1,924 stocks traded today, 1,380 were in the positive territory and 510 were negative.

Riding High:

Largecap and midcap gainers today include Oil India Ltd. (648.55, 6.8%), Linde India Ltd. (8,997.15, 6.6%) and Oil And Natural Gas Corporation Ltd. (273.55, 5.6%).

Downers:

Largecap and midcap losers today include InterGlobe Aviation Ltd. (4,369.50, -4.3%), One97 Communications Ltd. (380.55, -2.2%) and ICICI Lombard General Insurance Company Ltd. (1,645.35, -2.1%).

Volume Shockers

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

Top high volume gainers on BSE included NBCC (India) Ltd. (156.58, 9.5%), HFCL Ltd. (107.57, 9.4%) and Jindal Worldwide Ltd. (362.50, 7.3%).

Top high volume losers on BSE were IRB Infrastructure Developers Ltd. (66.12, -5.8%) and Poly Medicure Ltd. (1,831.60, -1.2%).

Varroc Engineering Ltd. (665.50, 7.2%) was trading at 13.7 times of weekly average. Home First Finance Company India Ltd. (924.50, 6.9%) and Aavas Financiers Ltd. (1,847.70, 6.5%) were trading with volumes 8.3 and 7.4 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

44 stocks hit their 52 week highs,

Stocks touching their year highs included - Ashok Leyland Ltd. (237.96, 2.8%), Balkrishna Industries Ltd. (3,231.20, -0.6%) and BASF India Ltd. (4,694.55, 3.0%).

26 stocks climbed above their 200 day SMA including Jindal Worldwide Ltd. (362.50, 7.3%) and Home First Finance Company India Ltd. (924.50, 6.9%). 7 stocks slipped below their 200 SMA including Cyient Ltd. (1,863.75, -1.3%) and Route Mobile Ltd. (1,564, -0.8%).

 
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The Baseline
11 Jun 2024
5 stocks to buy from analysts this week - June 11, 2024
By Ruchir Sankhla

1. Lemon Tree Hotels:

IDBI Capital upgrades this hotel company  to a ‘Buy’ with a target price of Rs 162, indicating a potential upside of 13.2%. In Q4FY24, the company’s profits increased 52% YoY to Rs 67 crore, while revenue grew 30.3% YoY. The results were in line with the brokerage's estimates for net sales, while net profit was a beat. The company’s EBITDA margin declined 295 basis points YoY. Analysts Archana Gude and Sarthak Awasthi attribute this fall tohigher expenses in renovating existing hotels in order to garner higher average room rates. 

The analysts say “We anticipate robust inventory addition through management contracts and franchises, to drive sustainable margin improvement in the mid-long term.” The company has signed 12 new management and franchise contracts, adding  667 new rooms in Q4 to their pipeline.

Gude and Awasthi see the company as a strong player in mid-scale hotels due to its operations and renovation efforts. They expect the average daily rate (ADR)to get a substantialpush in the mid-term. Additionally, they commend the company's outlook on inventory addition and balance sheet strengthening through debt repayment.

2. HCL Technologies:

Axis Direct recommends a ‘Buy’ rating on this IT consulting & software company with a target price of Rs 1,550, indicating a potential upside of 8.3%. Analyst Omkar Tanksale says, “HCL Technologies’ Q4 results outperformed its Indian counterparts, mainly because of diversified business – IT services contributed 74% of its revenue while engineering and research & development (ER&D) and product & platform contributed 16% and 10% to total revenues respectively.” During Q4FY24, its profit increased marginally YoY to Rs 3,986 crore, while revenue grew 6.8% YoY to Rs 28,915 crore.

Tanksale is optimistic about the deal pipeline and expects the company to sign deals in FY25 as well. The firm’s new deal-wins increased to $2.3 billion in Q4, of which 21 were large deals — 13 in the services vertical and 8 in the software vertical.

The analyst mentions that ER&D has seen strong investment and resilient demand compared to other traditional services during economic uncertainty. He believes this long-term demand will remain strong, and expects the IT sector to regain momentum in H2FY25 and onwards. However, he is cautious of near-term demand amid lower spending and AI headwinds. Tanksale expects revenue to grow in the range of 3%–5% YoY in FY25while the company’s management retains EBIT margin guidance of 18%–19%.

3. Birla Corp:

ICICI Direct gives a ‘Buy’ call to this cement and cement products manufacturer with a target price of Rs 1,870, indicating an upside of 22.3%. Analysts Vijay Goel and Ankit Shah are optimistic about the company’s new cement facility at Muktaban with a 3.9 mtpa capacity. With the new facility giving the company access to newer growth markets in western India, they expect cement volumes to pick up. They estimate a volume CAGR of 8.7% over FY25-26. 

Goel and Shah say, “Focus on operational efficiencies will drive improvement in EBITDA per tonne over FY25-26.” They note that EBITDA per tonne improved sharply – by 66% YoY to Rs 815 in FY24, driven by measures like raw material sourcing and captive coal & power usage.

They believe that with the government’s incentives for the Muktaban facility, lower fuel prices, and an increasing share of premium products, the company’s margins and profitability will improve over FY25-26. They estimate EBITDA per tonne to improve to Rs 925 in FY25 and Rs 1,017 in FY26, and expect revenue to grow at 9% while profit grows at double digits, of  51% CAGR over FY25-26.

4. Supriya Lifescience:

KR Choksey retains a ‘Buy’ rating on this pharma company with a target price of Rs 401, indicating a potential upside of 7.6%. In Q4FY24, the company’s net profit fell 3.4% YoY to Rs 36.9 crore due to an increase in inventory expenses, while its revenue grew 11.1% YoY to Rs 158 crore, beating the brokerage’s estimates by 5.8% due to growth in the vitamin and anti-histamine segment.

Analyst Unnati Jadhav believes that the company’s regulated market share will increase going forward and support its profitability as it will launch new products in FY25 and commercialise contracts in the pipeline in H2FY25.

The analyst is optimistic about the firm’s Ambernath facility (CDMO projects) as it starts production in Q2FY25 and expects it to reach peak capacity in two to three years. She expects this plant to contribute 20% to 25% of total revenue within the next two to three years. Going forward, Jadhav expects the revenue to grow at 20.1% CAGR and profit to grow at 22.3% CAGR over FY25-FY26.

5. Kewal Kiran Clothing:

Anand Rathi upgrades to a ‘Buy’ call on this apparel and accessories manufacturer with a target price of Rs 811, indicating an upside of 17.1%. In Q4FY24, the company’s net profit improved by 20.2% YoY to Rs 37.9 crore, while revenue grew by 10.2% YoY in line with the brokerage’s estimates. Analysts Vaishnavi Mandhaniya and Shreya Baheti note that the company’s efforts to reduce finished goods inventory to align with the fast-changing trends in the fashion industry, and its focus on profitability led to a 75% YoY increase in operating cash flows to Rs 140 crore.

Mandhaniya and Baheti are upbeat on the company and note that it strengthened its presence in women’s wear by acquiring a 50% stake in Kraus Casuals for Rs 170 crore. They believe future growth is promising despite the intense competition in this space, and will be driven by the channel mix, network expansion, and category extensions to kids’ and women’s wear. The analysts estimate sales and profit to grow at a CAGR of 15.9% and 12.6%, respectively, over FY25-26.

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

(You can find all analyst picks here)