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The Baseline
04 Apr 2024
By Satyam Kumar


As the financial year ends, investors are eager to see the FY24 report cards of companies. But there are already predictions from analysts of who the top-rankers will be, ahead of the final quarter’s result season.  

In this edition of Chart of the Week, we take a look at the sectors and companies that analysts believe will come out on top. These have the highest growth estimates for revenue and earnings per share (EPS) for FY24.  

The reference here is this screener of stocks with the highest Trendlyne’s Forecaster growth estimates in annual revenue and EPS in FY24. We have selected stocks with the highest Forecaster estimates from the most dominant sectors.

Banking and finance sector companies estimated to post strong revenue growth in FY24

The banking and finance sector has multiple companies with the highest Forecaster estimates for revenue and EPS in FY24. Lending company CreditAccess Grameen caters to low-income households lacking access to formal sources of financing. Trendlyne’s Forecaster estimates annual revenue growth for FY24 at 43.4% for CreditAccess, with EPS growth of 71.8%. Analysts at ICICI Securities believe that the company’s deeper penetration in rural areas, focus on increasing geographic coverage & diversifying product segments will help growth. In Q3FY24, the company had added 17 new branches, taking its total count to 1,894.

Two other big winners in this space are capital markets companies such as Angel One and ICICI Securities, which are beneficiaries of the bullishness around the Indian stock market. Angel One is Angel Broking, post its rebranding and an aggressive focus on derivatives. Forecaster estimates Angel One’s annual revenue to increase by 45.2%. At the same time, Forecaster estimates ICICI Securities’ revenue to grow by 42.4% and EPS to rise by 48.1% in FY24.

Construction stocks’ order book near all-time highs on the back of robust execution

With their order book near all-time highs, construction companies such as Ahluwalia Contracts, Kalpataru Projects and PSP Projects are benefiting from strong order inflows. This is because of a 33% YoY rise in government spending on infrastructure at Rs 10 lakh crore in FY24 and a strong economy. Forecaster estimates Ahluwalia Contracts’ revenue growth of 33.5% in FY24, with EPS growth of 31.5%. Meanwhile, it estimates Kalpataru Projects’ annual EPS to increase by 50.9%. 

Trendlyne’s Forecaster estimates PSP Projects to post annual revenue growth of 31.2% in FY24, with EPS growth of 16.1%. The company says it’s confident of achieving a Rs 26 billion revenue target for FY24 with 11-12% EBITDA margins. However, since the start of FY24, it has witnessed increasing debt levels. In Q3FY24, debt stood at Rs 478 crore. With a few projects nearing completion, the company plans to reduce it meaningfully.

Consumer demand drives growth in the electronics and automobile sector

Moving to the consumer durables sector, Dixon Technologies is a major beneficiary of the Make in India scheme, with additional support from the government’s production-linked incentive schemes. Trendlyne’s Forecaster estimates revenue growth for Dixon Technologies at 51.4% YoY in FY24, with EPS growth at 54.7%. Meanwhile, Polycab India is benefitting from growing industrial demand for wires and cables as various real estate projects nears completion. 

Consumer electronics company Voltas stands to gain from consumer demand, especially in the cooling space, due to extreme weather conditions. At the same time, premiumisation of products has led to better margins. Forecaster estimates Voltas’ FY24 revenue growth at 23.5%, with EPS growth of 62.3%.

Automobile company Tata Motors witnessed strong demand across all segments in FY24. Forecaster estimates its revenue growth in FY24 at 26.5%, with EPS growth of 1,671%. The significant rise in EPS is mainly due to a jump in sales volumes in its luxury vehicles segment. Also, the margin expansion for Jaguar Land Rover to above 8% in FY24E along with a 50% debt reduction (on a consolidated basis) will help achieve bottom-line growth. In FY23, the company posted a consolidated net profit of Rs 2,414.3 crore, compared to a loss in the previous years. Trendlyne’s Forecaster estimates the revenue growth of auto components companies such as Samvardhana Motherson and UNO Minda at 25.8% and 23.4% respectively in FY24. 

Healthcare facilities company Max Healthcare witnessed its bed occupancy stabilise at 75% levels in 2024. Motilal Oswal expects average revenue per occupied bed to increase by 8% YoY in FY24. Forecaster estimates the company’s revenue growth at 50.4%, with EPS growth of 20.7%. Meanwhile, Apollo Hospitals currently has bed occupancy above 65%, Forecaster estimates revenue growth of 15.4%, with EPS growth of 20.5% in FY24. On the other hand, leisure facilities company, Wonderla Holidays’ is focusing on enhancing customer experience and adding new parks every 3-4 years to drive growth.

Strong order book and international orders in general industrials drive growth

Finally, general industrial companies stand to benefit from a strong order book on the back of domestic as well as international orders. Triveni Turbine witnessed export sales growth of 35% YoY to Rs 190 crore in Q3FY24. The company is seeing a surge in order bookings from the Middle East, North Africa, Europe, Turkey, and the Americas. This has led Forecaster to estimate annual revenue growth of 34.6%, with EPS growth of 40% in FY24. Trendlyne’s Forecaster estimates Bharat Forge’s revenue to grow at 21.3%, with EPS growth at 87.7% in FY24. 

Meanwhile, ABB India is witnessing demand from civil construction players engaged in building public infrastructure assets as they are focusing on high-quality products, which is helping margins. Forecaster estimates the company’s annual revenue growth for FY24 at 21.8%, with EPS growth of 17.7%.

 
Trendlyne Marketwatch
Trendlyne Marketwatch
04 Apr 2024
Market closes higher, Bharti Hexacom's Rs 4,275 crore IPO gets bids for 0.6X the available 4.1 crore shares
By Trendlyne Analysis

Nifty 50 closed at 22,514.65 (80, 0.4%), BSE Sensex closed at 74,227.63 (350.8, 0.5%) while the broader Nifty 500 closed at 20,664.65 (59.0, 0.3%). Market breadth is in the green. Of the 2,122 stocks traded today, 1,266 were gainers and 827 were losers.

Indian indices recovered from the day’s low and closed in the green. The volatility index, Nifty VIX, dropped by 1.7% and closed at 11.3 points. Au Small Finance Bank's Q4FY24 total deposits rose 26% YoY to Rs 87,182 crore and gross advances grew by 25% YoY to Rs 73,999 crore. Its CASA ratio stood at 33% as against 38% in Q4FY23. 

Nifty Midcap 100 closed flat, while Nifty Smallcap 100 closed higher following the benchmark index closing flat. Nifty IT and Nifty Bank closed higher than Wednesday’s closing level. According to Trendlyne’s sector dashboard, retailing cemerged as the top-performing sector of the day, with a rise of over 2.5%.

Most European indices trade in the green. US indices futures trade flat, indicating a cautious start. The data released by Hamburg Commercial Bank indicated Eurozone’s Services PMI for March expanded to 51.5 against estimates of 51.1.

  • Kotak Mahindra Bank sees a long buildup in its April 25 future series as its open interest rises 13.8% with a put-call ratio of 0.6.

  • Equitas Small Finance Bank's Q4FY24 total deposits rise 43% YoY to Rs 25,349 and gross advances grow by 23% YoY to Rs 27,861 crore. Its CASA ratio stands at 42% as against 32% in Q4FY23.

  • G M Breweries falls as its EBITDA margin drops 437 basis points to 15.8% in Q4FY24. However, the company's profit rises 146% YoY to Rs 86.6 crore, with a revenue growth of 11.7%.

  • According to a poll of economists, the RBI will keep the repo rate unchanged and retain the monetary policy stance of 'withdrawal of accommodation'. Nirmal Bang expects a delay in rate cuts due to concerns over persistently high inflation fueled by heatwaves.

  • IT stocks like Tata Consultancy Services, Infosys, HCL Technologies, Wipro, and LTIMindtree are rising in trade. All constituents of the broader Nifty IT index are also trading in the green.

  • Bharti Hexacom's Rs 4,275 crore IPO gets bids for 0.6X the available 4.1 crore shares on offer on the second day of bidding. The retail investor quota gets bids for 0.9X the available 75 lakh shares on offer.

  • Au Small Finance Bank surges as its Q4FY24 total deposits rise 26% YoY to Rs 87,182 crore and gross advances grow by 25% YoY to Rs 73,999 crore. Its CASA ratio stands at 33% as against 38% in Q4FY23.

  • Anand Agarwal, CFO of V-Mart, notes an improvement in demand and footfall compared to the last two years. However, he highlights uncertainty regarding further expansion in demand. Agarwal adds that the company's SSSG (same-store sales growth) is projected to increase in the high single digits in the medium term.

  • Suryoday Small Finance Bank surges in trade as its total deposits rise 50% YoY to Rs 7,775 crore, while gross advances increase by 50% YoY to Rs 8,650 crore in Q4FY24.

  • ICICI Direct retains its 'Buy' rating on Coal India with an upgraded target price of Rs 550. This indicates a potential upside of 24.2%. The brokerage is optimistic about the stock due to healthy volume growth, a robust net cash positive balance sheet, and its significant contribution to India’s energy requirements. It expects the company's revenue to grow at a CAGR of 8.7% over FY23-26.

  • Oil and gas stocks like Oil And Natural Gas Corp, Petronet LNG, Hindustan Petroleum Corp and Indian Oil Corp are falling in trade. The broader sectoral indices, BSE Oil & Gas and Nifty Oil & Gas, are also trading in the red.

  • Macquarie expects Honasa Consumer to achieve a sales CAGR exceeding 20% over the next 3-5 years, driven by the offline expansion of its flagship brand, Mamaearth. The brokerage highlights Honasa's ability to understand changing preferences and its access to over 6 million users, facilitating growth across new brands.

  • Brigade Enterprises is rising as it enters a joint development agreement with United Oxygen to develop a 3 lakh square feet office space in Bengaluru. The gross development value (GDV) of the office is Rs 340 crore.

  • RBL Bank is rising as its total deposits grow by 22% YoY to Rs 1 lakh crore, while gross advances increase by 19% YoY to Rs 85,640 in Q4FY24.

  • Vedanta's Q4FY24 total aluminium production rises 4% YoY to 6 lakh tonnes, driven by growth in Lanjigarh refinery's operational performance.

  • Shantanu Roy, Chairman & Managing Director at BEML, expects orders worth Rs 6,000 crore in defence and Rs 58,000 in rail & metro segments. He aims to secure 50% of the available awards through bidding. Roy projects a revenue growth CAGR of 18-20% over the next 3-4 years.

  • HDFC Bank is rising as its gross advances surge by 55.4% YoY to Rs 25.1 lakh crore in Q4FY24, helped by growth in domestic retail, commercial and rural banking loans. Its deposits also increase by 26.4% to Rs 23.8 lakh crore during the quarter.

  • Bajaj Finance invests Rs 2,000 crore in its subsidiary, Bajaj Housing Finance, by subscribing to a rights issue.

  • Avenue Supermarts hits a 52-week high of Rs 4,715 as its revenue for Q4FY24 rises 19.9% YoY to Rs 12,393.5 crore.

  • India’s Services PMI rises to 61.2 in March from 60.6 in February on the back of robust demand leading to sales growth and business activity. This is the 32nd consecutive month the PMI has stayed above the 50 mark.

  • KEC International touches its all-time high of Rs 838.8 as it bags an order worth Rs 816 crore across its various businesses. Its civil business secures orders for infrastructure projects in India, the transmission business secures orders for tower supply in the US, and its cable business wins an order for various types of cables in India and overseas.

  • GE Power surges as it bags two orders worth Rs 774.9 crore from Jaiprakash Power Ventures to set up a thermal power plant in Nigrie and to supply and erect a boiler at the Bina thermal power plant.

  • Mohnish Pabrai sells a 2.9% stake in Edelweiss Financial Services for approx Rs 188.2 crore in a bulk deal on Wednesday.

  • Angel One is rising as its average daily turnover (ADTO) grows by 111.3% YoY to Rs 44 lakh crore in March. Its client base also improves by 61.5% YoY to 2.2 crore, with total order numbers rising by 41.9% YoY in the same month. The company appears in a screener of stocks with relative outperformance over the past month.

  • Upbeat trading today, as Nifty 50 was trading at 22,580.65 (146, 0.7%), BSE Sensex was trading at 74,413.82 (537, 0.7%) while the broader Nifty 500 was trading at 20,754.80 (149.1, 0.7%)

  • Market breadth is highly positive. Of the 1,909 stocks traded today, 1,680 were in the positive territory and 198 were negative.

Riding High:

Largecap and midcap gainers today include Zomato Ltd. (187, 4.9%), UNO Minda Ltd. (729.30, 4.6%) and Ipca Laboratories Ltd. (1,276.15, 4.2%).

Downers:

Largecap and midcap losers today include Dabur India Ltd. (506.05, -4.7%), Colgate-Palmolive (India) Ltd. (2,707, -3.3%) and ICICI Lombard General Insurance Company Ltd. (1,638.30, -3.2%).

Volume Shockers

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

Top high volume gainers on BSE included Elgi Equipments Ltd. (653.35, 10.9%), Alkyl Amines Chemicals Ltd. (2,159.20, 10.8%) and Jubilant Pharmova Ltd. (636.90, 9.9%).

Top high volume losers on BSE were Dabur India Ltd. (506.05, -4.7%), Nuvoco Vistas Corporation Ltd. (320.75, -2.1%) and AstraZeneca Pharma India Ltd. (5,080.50, -0.2%).

KEC International Ltd. (769.75, 5.6%) was trading at 91.9 times of weekly average. Balaji Amines Ltd. (2,273.70, 7.1%) and Gujarat Ambuja Exports Ltd. (180.45, 7.0%) were trading with volumes 9.9 and 9.8 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

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

Stocks touching their year highs included - Adani Power Ltd. (642, 3.9%), Ambuja Cements Ltd. (624.70, -1.6%) and Blue Star Ltd. (1,348.30, 0%).

Stock making new 52 weeks lows included - Dabur India Ltd. (506.05, -4.7%).

15 stocks climbed above their 200 day SMA including Balaji Amines Ltd. (2,273.70, 7.1%) and Ujjivan Small Finance Bank Ltd. (54.30, 6.3%). 5 stocks slipped below their 200 SMA including Patanjali Foods Ltd. (1,380.80, -1.7%) and Eris Lifesciences Ltd. (839.70, -1.3%).

 
Trendlyne Marketwatch US
Trendlyne Marketwatch US
04 Apr 2024

Markets closed down today . Dow Jones was trading at 39059.20 (-12.4, 0.0%) , S&P 500 was trading at 5203.45 (-3.0, -0.1%) while the broader US Tech Composite was trading at 16255.56 (-15.2, -0.1%)

Riding High:

Largecap and midcap gainers today include USD Partners LP - Unit (0.14, 180%), ARCA biopharma Inc (3.20, 87.1%) and two - Ordinary Shares - Class A (10.70, 71.5%).

Downers:

Largecap and midcap losers today include Edoc Acquisition Corp - Ordinary Shares - Class A (0, -100%), PepperLime Health Acquisition Corp - Ordinary Shares - Class A (0, -100%) and Power & Digital Infrastructure Acquisition II Corp - Units (1 Ord Class A & 1/2 War) (0, -100%).

IXIX-CFD: highs, lows and moving averages

30 stocks outperformed, hitting 52 week highs, Stocks touching their year highs included - Williams Cos Inc (39.37, 0.2%), Progressive Corp. (211, 0.5%), NRG Energy Inc. (72.08, 5.1%) and Raymond James Financial, Inc. (129.34, 0.5%).

22 stocks slipped below their 200 SMA including Ulta Beauty Inc (440.38, -15.3%) and Estee Lauder Cos., Inc. - Ordinary Shares - Class A (146.66, -4%).

146 stocks are currently overbought in RSI including .

147 stocks are currently oversold in RSI including Ulta Beauty Inc (440.38, -15.3%) and Estee Lauder Cos., Inc. - Ordinary Shares - Class A (146.66, -4%).

 
Trendlyne Marketwatch
Trendlyne Marketwatch
03 Apr 2024
Market closes flat, National Aluminium's FY24 metal sales rise 1.3% YoY
By Trendlyne Analysis

Nifty 50 closed at 22,446.40 (-6.9, 0.0%), BSE Sensex closed at 73,876.82 (-27.1, 0.0%) while the broader Nifty 500 closed at 20,613.65 (43.9, 0.2%). Of the 2,131 stocks traded today, 1,552 were gainers and 550 were losers.

Indian indices settled flat after switching between losses and gains. The Indian volatility index, Nifty VIX, fell 2.4% and closed at 11.4 points. Sunteck Realty closed in the green after entering a 29-year lease agreement worth Rs 2,000 crore with Bennett Coleman & Co for its 2 lakh square foot commercial building in Mumbai.

Nifty Smallcap 100 and Nifty Midcap 100 closed in the green, outperforming the benchmark index. Nifty PSU Bank and Nifty Media closed higher than their Tuesday close. According to Trendlyne’s sector dashboard, Fertilizers emerged as the top-performing sector of the day, with a rise of 3.2%.

Major Asian indices closed in the red, except for India’s BSE Sensex closing flat. European indices traded flat or higher, except for the UK’s FTSE 100 index trading lower. US index futures traded flat, indicating a cautious start to the trading session. Brent crude oil futures traded flat after rising for four straight consecutive trading sessions.

  • Money flow index (MFI) indicates that stocks like Linde India, Carborundum Universal, Maruti Suzuki India and Bajaj Finance are in the overbought zone.

  • Whirlpool of India, EID Parry (India), Swan Energy, and Kalyan Jewellers India witness an increase in mutual fund holdings in the past month.

  • National Aluminium's FY24 metal sales rise 1.3% YoY to 4.7 lakh metric tonnes. It records cast metal production of 4.6 metric tonnes.

  • HDFC Mutual Fund decreases its shareholding in Mishra Dhatu Nigam (Midhani) by 2% to 7.1% as of April 1.

  • EV sales rise 41% YoY in FY24 despite subsidy cuts and regulatory shifts. Due to this, the nation's overall EV penetration has increased to 6.8% in FY24 from 5.3% in FY23, and the number of EV registrations grew to over 1.6 million in FY24 from 1.1 million in FY23.

  • Bharti Hexacom's Rs 4,275 crore IPO gets bids for 0.2X the available 4.1 crore shares on offer on the first day of bidding. The retail investor quota gets bids for 0.3X the available 75 lakh shares on offer.

  • Sunteck Realty rises as it enters a 29-year lease agreement worth Rs 2,000 crore with Bennett Coleman & Co for its 2 lakh square foot commercial building in Mumbai.

  • Realty stocks like Macrotech Developers, Godrej Properties, DLF and Oberoi Realty are falling in trade, causing the broader Nifty Realty index to plunge more than 2%.

  • Systematix initiates coverage on Shailey Engineering with a target price of Rs 720. The brokerage notes the company's large customer base across segments like automotive, lighting, and healthcare. It also adds that the company is a major player in high-precision engineered plastic products.

  • Star Health & Allied Insurance is rising as it enters a strategic partnership with PhonePe to offer insurance policies. As per the partnership agreement, Star Health’s health insurance policies will be available, with monthly and annual payment options, on the PhonePe app.

  • Granules India receives Form 483 with five observations after a US FDA inspection at its US subsidiary, Granules Pharmaceuticals' facility in Virginia.

  • PNC Infratech's subsidiary, PNC Raebareli Highways, enters a Rs 117.2 crore settlement with the National Highways Authority of India (NHAI) under the Vivad se Vishwas-II (contractual disputes) scheme.

  • Citi Research expects AUM growth to continue for most NBFCs and housing finance companies, except LIC Housing Finance, L&T Finance, and Piramal Enterprises. However, it highlights increased cost pressure on NBFCs' borrowings due to banks passing on the impact of increased risk weights.

  • Sona BLW Precision Forgings receives certification under the PLI scheme for auto and auto components. The certification was awarded for its second hub wheel motor designed for electric two-wheelers.

  • Anupam Rasayan India inks an agreement worth $90 million (Rs 743 crore) with a Japanese multinational company to supply two advance intermediates using fluorination chemistry.

  • Shriram Properties is falling as it receives a Rs 446.8 crore penalty order from the Deputy Commissioner of Income Tax, Chennai, for FY19.

  • According to an Indian Cellular and Electronics Association (ICEA) report, the value of mobile devices produced in India rises by 17% YoY to Rs 4.1 lakh crore in FY24, despite stagnant domestic sales volume. Smartphone sales have stayed largely stable at 145–150 million units. Experts credit the rising adoption of 5G phones for the increase in average phone sale prices.

  • HCL Technologies is rising as its UK arm, HCL Investments, enters a memorandum of understanding (MoU) with its joint venture (JV) partner, State Street International Holdings, to divest its stake in the JV for $172.5 million (approx. Rs 1,438.9 crore).

  • SRM Contractors’ shares debut on the bourses at a 2.5% premium to the issue price of Rs 210. The Rs 130.2 crore IPO has received bids for 86.6 times the total shares on offer.

  • JSW Energy touches its all-time high of Rs 558 as its board of directors approves the issue of equity shares worth Rs 5,000 crore through a qualified institutional placement (QIP). The board has set a floor price of Rs 510.1 per share.

  • The World Bank raises India's FY25 GDP growth projection by 20 bps to 6.6%. It notes that India is a major contributor to robust output growth in South Asia. The bank expects a moderation in inflationary pressures and strong growth in services and industry, with the latter driven by construction and real estate activity.

  • Bharti Hexacom raises Rs 1,923.8 crore from anchor investors ahead of its IPO by allotting around 3.4 crore shares at Rs 570 each. Investors include Fidelity Funds, Abu Dhabi Investment Authority, BNP Paribas Trust Services Singapore, Morgan Stanley, HSBC, Smallcap World Fund, Axis Mutual Fund, Whiteoak Capital and Mirae Asset.

  • YES Bank's Q4FY24 deposits rise 22.5% YoY to Rs 2.6 lakh crore while advances grow by 14.1% YoY to 2.3 lakh crore. Its CASA ratio stands at 30.8%.

  • Gensol Engineering's FY24 revenue rises 141% YoY to Rs 960 crore. Chairman and Managing Director Anmol Singh Jaggi says, "This financial performance reflects a growth trajectory exceeding the guidance given in our last earnings conference call in January 2024."

  • Chalet Hotels approves Qualified Institutional Placement of equity shares at a premium of Rs 782, aggregating to Rs 1,000 crore.

Riding High:

Largecap and midcap gainers today include Punjab National Bank (136.25, 7.5%), JSW Energy Ltd. (580, 7.0%) and IDBI Bank Ltd. (87.75, 5.2%).

Downers:

Largecap and midcap losers today include Macrotech Developers Ltd. (1,113.85, -4.6%), Godrej Properties Ltd. (2,405.50, -3.7%) and DLF Ltd. (905.20, -3.2%).

Movers and Shakers

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

Top high volume gainers on BSE included Capri Global Capital Ltd. (237.75, 16.3%), Mazagon Dock Shipbuilders Ltd. (2,232, 11.9%) and Cera Sanitaryware Ltd. (7,625, 10.6%).

Top high volume losers on BSE were Ipca Laboratories Ltd. (1,222.15, -0.9%), Shree Cements Ltd. (26,367.05, -0.6%) and Metro Brands Ltd. (1,096, -0.6%).

Anupam Rasayan India Ltd. (895.15, 0.9%) was trading at 16.4 times of weekly average. Hindustan Zinc Ltd. (328.85, 4.2%) and Laurus Labs Ltd. (440, 6.0%) were trading with volumes 6.1 and 5.6 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

36 stocks took off, crossing 52 week highs,

Stocks touching their year highs included - Adani Power Ltd. (617.85, 5%), Ambuja Cements Ltd. (635.25, 0.1%) and Bharat Electronics Ltd. (221.55, 0.3%).

23 stocks climbed above their 200 day SMA including Gujarat Narmada Valley Fertilizers & Chemicals Ltd. (693.60, 5.3%) and Escorts Kubota Ltd. (3,001.35, 4.4%). 3 stocks slipped below their 200 SMA including Britannia Industries Ltd. (4,830.50, -1.4%) and Ashok Leyland Ltd. (174.10, -1.4%).

 
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The Baseline
02 Apr 2024
5 stocks to buy from analysts this week
By Abhiraj Panchal

1. Dalmia Bharat:

BOB Capital Markets upgrades this cement products manufacturer to ‘Buy’ with a target price of Rs 2,443. This indicates an upside of 22.7%. Analysts Milind Raginwar and Shree Kirloskar say, “Dalmia Bharat is set to tap growth opportunities by consolidating its India presence, and its plans to address shortages by enhancing capacity in its major regions.” They expect the company’s market share to grow in FY25-26. 

Dalmia Bharat plans to enhance capacity utilisation to 27.1 million tonnes in FY26 from 22.9 million tonnes currently. It also plans to raise cement capacity by 13.3% to 49.5 million tonnes in FY26. The analysts are also optimistic about the company due to its plans to enhance its alternative energy sources. Raginwar and Kirloskar expect these measures to improve EBITDA margin by 4.7% points to 21.7% in FY26.

Given its healthy margins, focus on calibrated growth and limited balance sheet stress, the analysts believe that Dalmia Bharat is poised for sustained growth.

2. Birlasoft:

Sharekhan maintains a ‘Buy’ call on this IT consulting and software company with a target price of Rs 950. This indicates an upside of 24.7%. The analysts at Sharekhan met the company’s management to get an update on its outlook and growth plans. They say, “Birlasoft remains well placed to deliver top-quartile performance, guided by a revamped management, a robust order book and deal ramp-ups.” They believe that the company is witnessing a decent flow of cost take-out deals, which should drive a rebound in new deals after the moderation in Q3FY24.

With the senior leadership hiring complete, the analysts are positive that the management is focused on agile growth. They say that it is investing in emerging technologies such as generative AI along with scaling up its existing capabilities in Microsoft Azure, AWS, GCP, and Cloud platforms. 

The analysts expect 15% and 23% CAGR growth in sales and profit respectively, over FY25-26. 

3. BSE:

HDFC Securities maintains a ‘Buy’ call on this exchange with a target price of Rs 3,050. This indicates an upside of 12.6%.  Analyst Amit Chandra says, “BSE has attained a 20% and 7% notional and premium market share, respectively, largely driven by the rising popularity of its derivatives contracts.” He is optimistic as the Sensex weekly contract has been a success, and Bankex is gaining strength. The analyst believes that BSE derivatives will continue to grow, with the growth led by the scaling of the Bankex contract, a higher volume of proprietary traders, and greater participation of Foreign Portfolio Investors. 

Chandra believes that the core settlement guarantee fund (SGF) pool is increasing across exchanges, led by regulatory initiatives to mitigate risk. Also, the settlement costs for BSE are 2.5X that of NSE. The analysts expect SGF and settlement costs to fall gradually as economies of scale come into play. Assuming an 11% market share in premium in FY26, the analyst expects derivatives to contribute 43% of the company’s total revenue. He expects a revenue CAGR of 34% over FY25-26, led by a revival in transaction revenue. 

4. Sagar Cements:

Geojit BNP Paribas upgrades this cement products manufacturer to ‘Buy’ with a target price of Rs 246, indicating an upside of 11.6%. The company’s Q3FY24 revenue grew by 16% YoY, which the analyst Vincent Andrews believes was aided by volume growth of 14% YoY and realisation growth of 2.4% YoY. However, capacity utilisation was lower due to state elections, floods and festivals. The analyst reduces volume guidance for FY24 due to low capacity utilisation but expects an improvement in capacity utilisation over the next financial year.

Andrews expects margin improvement, supported by a ramp-up in recently acquired units, improvement in the green power mix, and deployment of electric trucks and wheel loaders. He believes that the healthy demand outlook, given the strong government focus on infrastructure along with the company’s consistent focus on lowering costs and improving operational efficiencies, will aid growth and margins. The analyst expects revenue to grow at a 17% CAGR over FY25-26.

5. South Indian Bank:

ICICI Direct recommends a ‘Buy’ call on this bank with a target price of Rs 35, indicating an upside of 19.5%. The analyst Vishal Narnolia says, “Post restructuring, the bank now is focused on a five-step strategy to steer its growth and profitability.” According to him, this ‘five-step strategy’ includes a focus on accelerating growth in MSME and retail portfolios, improving branch productivity, and lowering a relatively higher cost-to-income ratio. The other two steps are sourcing new business through partnerships and enhancing compliance architecture.

Narnolia believes that focusing on MSME and retail loans will improve margins. He also notes that a healthy liabilities franchise, recent capital raising and scope to increase the credit-to-deposit ratio will keep margins steady. He expects advances to grow at 13% CAGR over FY25-26. He concludes, “With business transformation imbibed and new competitive leadership, the current trajectory of business restructuring is expected to continue.”

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

(You can find all analyst picks here)

 
Trendlyne Marketwatch
Trendlyne Marketwatch
02 Apr 2024
Market closes flat, Ion Exchange rises sharply as it bags a Rs 250.7 crore order from Material Construction
By Trendlyne Analysis

Nifty 50 closed at 22,453.30 (-8.7, 0.0%), BSE Sensex closed at 73,903.91 (-110.6, -0.2%) while the broader Nifty 500 closed at 20,569.75 (77.2, 0.4%). Market breadth is overwhelmingly positive. Of the 2,128 stocks traded today, 1,644 were in the positive territory and 460 were negative.

Indian indices recovered from the day’s low and closed flat. The volatility index, Nifty VIX, dropped by 3.6% and closed at 11.6 points. Defence company Bharat Electronics' FY24 turnover increased by 13.7% YoY to Rs 19,700 crore. During the year, the company secured orders worth Rs 35,000 crore, bringing its total order book to around Rs 76,000 crore. 

Nifty Smallcap 100 and Nifty Midcap 100 closed higher, with the benchmark index closing flat. Nifty Metal and Nifty Media closed higher than Monday’s closing level. According to Trendlyne’s sector dashboard, fertilizers emerged as the top-performing sector of the day, with a rise of over 1.8%.

Most European indices trade in the green, except for France’s CAC 40 and Germany’s DAX trading flat. US indices futures trade lower, indicating a negative start. Germany’s manufacturing PMI in March contracted to 41.9 against estimates of 41.6.

  • Relative strength index (RSI) indicates that stocks like Siemens, ABB India, Indus Towers and Carborundum Universal are in the overbought zone.

  • Tata Motors sees three analyst target price upgrades over the past month. PNC Infratech, Sun Pharmaceutical Industries, and Granules India see two analyst target price upgrades over the same period.

  • Hindustan Copper's FY24 metal in concentrate production rises 11% YoY to 27,404 tonnes. Its ore production increases by 13% YoY to 3.8 million tonnes.

  • Aluminium and aluminium products, department stores, other telecom services, copper, and industrial gasesindustries rise more than 9% over the past month.

  • According to data released by the finance ministry, India witnessed the second-highest GST collections of around Rs 1.8 lakh crore in March, rising 11.5% YoY. For FY24, collections came in at Rs 20.2 lakh crore, up 11.7% YoY.

  • Ion Exchange rises sharply as it bags a Rs 250.7 crore order from Material Construction, UAE, to engineer, manufacture and commission a desalinating water unit in North Africa.

  • Metal stocks like Steel Authority of India (SAIL), Vedanta, APL Apollo Tubes and Hindustan Zinc rise more than 2% in trade. All constituents of the broader Nifty Metal index are also trading in the green, helping the index touch its all-time high of 8,672.6.

  • Mankind Pharma rises as it approves a slump sale of its over-the-counter business to a newly proposed arm, Mankind Consumer Products.

  • Vinati Saraf Muterja, Managing Director of Vinati Organics, says Q4 will be better than Q3 for the company. She forecasts topline growth of 20-25% and expects margins to remain stable around 26% in FY25. Muterja adds that the government's imposition of anti-dumping duty on Para-Tertiary Butyl Phenol (PTBP) won't have much impact, as it constitutes less than 10% of the total revenue.

  • Tata Technologies is surging as it forms a 50:50 joint venture (JV) with BMW Holding BV, Netherlands, to set up an automotive software and IT development hub in Pune, Bengaluru and Chennai. The JV will deliver automotive software, including software-defined vehicle (SDV) solutions for its premium vehicles and digital transformation solutions for business IT.

  • Choice International is rising as its arm, along with its JV partner Solar91 Cleantech, bags an order worth Rs 520 crore from Jodhpur Vidyut Nigam to develop a solar plant.

  • AU Small Finance Bank’s board announces a merger with Fincare Small Finance Bank, integrating Fincare SFB's branches into AU Small Finance Bank's network.

  • Aditya Birla Capital touches its all-time high of Rs 199.6 after Macquarie initiates coverage with an 'Outperform' rating and a target price of Rs 230. The brokerage believes the firm will show strong growth in earnings. It adds that the company is its top pick in the NBFC space, and sees a 2x upside potential in 3 years.

  • HG Infra Engineering surges as it gets two letters of awards worth Rs 156 crore from Jodhpur Vidyut Vitran Nigam for developing solar power plants.

  • Consumer Durables stocks like Havells India, Dixon Technologies (India), Voltas, and Blue Star are rising in trade. The broader Nifty Consumer Durables index is also trading in the green, reaching its 52-week high of 33,177.8 today.

  • BOB Capital Markets upgrades Dalmia Bharat to 'Buy' from 'Hold' with a target price of Rs 2,443. This indicates a potential upside of 23.7%. The brokerage believes that the company is poised for balanced growth on the back of its healthy margins and focus on calibrated growth. It expects the company's revenue to grow at a CAGR of 11% over FY23-26.

  • BoFA maintains its 'Underperform' rating on IndiaMART InterMESH but lowers the target price to Rs 2,100. The brokerage notes a growth slowdown but expects better margins to drive overall growth. It predicts slower Q4 net additions and a collections growth deceleration, potentially affecting revenue growth.

  • Bharat Electronics rises as its FY24 turnover increases 13.7% YoY to Rs 19,700 crore. During the year, the company secured orders worth Rs 35,000 crore, bringing its total order book to around Rs 76,000 crore.

  • TVS Motor’s March wholesales rise 12% YoY to 3.2 lakh units, driven by a 12% YoY rise in two-wheelers and a 6% increase in three-wheelers. Exports surge 23% YoY.

  • CSB Bank is rising as its total deposits grow by 21.3% YoY to Rs 29,719 crore, while gross advances increase 17.9% YoY to Rs 24,574 in Q4FY24.

  • India’s manufacturing PMI rises to a 16-year high of 59.1 in March from 56.9 in February, driven by strong production and new orders. The PMI reading remains above 50 for the 33rd consecutive month.

  • Aditya Birla Fashion and Retail rises with plans to demerge its Madura Fashion & Lifestyle business into a separate listed entity.

  • Infosys is falling as it receives a Rs 341 crore tax demand notice from the Income Tax Department for FY21.

  • Bajaj Auto rises as its total wholesales in March increase by 25.5% YoY to 3.7 lakh units. Domestic wholesales grow by 18.2%, while exports improve by 38.5%.

  • Hero MotoCorp's monthly wholesales decline by 5.6% YoY to 4.9 lakh units in March due to lower motorcycle sales and domestic business. The company appears in a screener of stocks with increased mutual fund shareholding last quarter.

  • Nifty 50 was trading at 22,435.55 (-26.5, -0.1%), BSE Sensex was trading at 73,908.36 (-106.2, -0.1%) while the broader Nifty 500 was trading at 20,507.30 (14.8, 0.1%).

  • Market breadth is overwhelmingly positive. Of the 1,898 stocks traded today, 1,277 showed gains, and 572 showed losses.

Riding High:

Largecap and midcap gainers today include Aditya Birla Capital Ltd. (200.95, 10.5%), Linde India Ltd. (7,000, 8.8%) and Oil India Ltd. (630.20, 6.6%).

Downers:

Largecap and midcap losers today include Vodafone Idea Ltd. (13.45, -3.9%), Indus Towers Ltd. (304.80, -3.3%) and Procter & Gamble Hygiene & Healthcare Ltd. (16,100, -3.0%).

Movers and Shakers

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

Top high volume gainers on BSE included Aditya Birla Fashion and Retail Ltd. (237, 12.0%), Tanla Platforms Ltd. (932, 10.7%) and Aditya Birla Capital Ltd. (200.95, 10.5%).

Top high volume losers on BSE were IndiaMART InterMESH Ltd. (2,622, -3.3%), Great Eastern Shipping Company Ltd. (987.90, -1.0%) and Rainbow Childrens Medicare Ltd. (1,344, -0.6%).

Symphony Ltd. (951.50, 9.6%) was trading at 14.8 times of weekly average. Century Plyboards (India) Ltd. (662, 1.9%) and Varroc Engineering Ltd. (564.40, 10.2%) were trading with volumes 12.3 and 10.9 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 Ports & Special Economic Zone Ltd. (1,402.85, 2.0%), Ambuja Cements Ltd. (636, 2.3%) and Bajaj Auto Ltd. (9,271.05, 2.5%).

37 stocks climbed above their 200 day SMA including Aditya Birla Fashion and Retail Ltd. (237, 12.0%) and Aditya Birla Capital Ltd. (200.95, 10.5%). 6 stocks slipped below their 200 SMA including Procter & Gamble Hygiene & Healthcare Ltd. (16,100, -3.0%) and Metro Brands Ltd. (1,100, -2.6%).