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The Baseline
05 Apr 2024
Five Interesting Stocks Today - April 5, 2024

1. Latent View Analytics:

This data processing services company rose by 8.2% over the past week after it acquired a 70% stake in Indian IT services company Decision Point on March 28 for $39.1 million (approx. Rs 326.3 crore). Decision Point is a leader in business improvement using artificial intelligence (AI), and revenue growth management solutions. The acquisition,Latent View says, will give it a foothold in the retail CPG segment. It will also give access to new clients and geographies. The company appears in a screener of stocks where mutual funds increased their shareholding in the past month.

Decision Point will also bring new large clients in the Retail CPG vertical, and in new regions like LatAm, US (its clients are largely US firms and are billed in $) and India. As a higher margin business, Decision Point can play a role in restoring LatentView’s operating margins to its historic levels of 32.1% (stands at 24.4% in FY23). 

Speaking on the acquisition, the management commented, “Decision Point derives about 8% revenue from Beagle GPT (the GenAI app used by Fortune 500 retail CPG clients), which helps the company have multiple revenue streams. After the integration, the retail CPG segment will become the second largest (20% of revenue by FY25) vertical for the company.”

Post the acquisition, Anand Rathi Wealth Management maintains its ‘Buy’ rating on the stock with a target price of Rs 630. This indicates a potential upside of 14.6%. The brokerage expects the company to maintain industry-leading growth in Q4FY24, despite the prevailing tough environment, followed by strong growth in FY25 supported by Decision Point’s integration (expected to be completed in Q1FY25).

2. AU Small Finance Bank:

This small finance bank has risen by 4.8% in the last two days after releasing its Q4 business update. Its total deposits have risen 26% YoY to Rs 87,182 crore and gross advances grew by 25% YoY to Rs 73,999 crore. 

The management noted that the macro environment has remained challenging in Q4FY24, due to intense competition among banks to mobilize deposits. However, the expansion in the bank’s business groups, such as urban branch banking (which focuses on the urban market and constitutes 79% of deposits) and swadesh banking (which focuses on the core market and makes up 21% of deposits) have driven deposit growth during the quarter. 

AU Bank has risen by 12.4% over the past week, outperforming its industry by 8.3%. On Monday, the bank announced the merger with Fincare SFB, after receiving approval from the RBI on March 4. Fincare has previously served a total customer base of approximately 54 lakh across 1,292 branches, with a strong presence in South India. After the merger, AU Bank’s total branch count will reach around 2,334, serving over 1 crore customers. 

The merger enables AU Bank to expand into new geographical areas, especially in South India. This increased presence will facilitate the distribution of its products and services to a larger customer base, and help strengthen its market position in the south. According to Trendlyne’s Forecaster, the bank’s revenue is expected to grow by 26% YoY in FY24.

Motilal Oswal reiterated its ‘Buy’ rating with a target price of Rs 720. This implies an upside of 13.4%. It believes that the overall business of the bank will become more diversified,  gaining presence in high-yielding MFI (micro-finance) and gold loan. 

3. Tata Technologies:

This software and services company has surged by 9.9% in the past week following its joint venture (JV) announcement with BMW Group. This partnership involves building a software hub with a 1,000+ workforce to provide the BMW Group with automotive software and digital engineering services. JM Financial estimates that the JV could add 4-5 percent to their bottom line. 

This collaboration is also expected to diversify the company’s client base, which is currently dominated by Tata group firms that account for approximately 33% of revenue as of Q3FY24.

Tata Tech’s IPO worth Rs 3,042.5 crore was oversubscribed 69.4 times and debuted with substantial gains of 162.6%. Currently, the stock trades 124.3% above its issue price since November 2023. Price consolidation in the past few months was mainly because of investors cashing in on bumper listing gains.  Trendlyne’s Forecaster estimates the company’s revenue to grow by 14% YoY in FY24. At the same time, it forecasts its net profit to increase by 12.5% YoY. 

The share of electric vehicles (EVs) in India's auto sales has surged to 6.4% in 2023 from 1.75% in 2021, indicating a shift in consumer preference towards EVs over the past two years. This suggests that India has crossed the tipping point in mass adoption of EVs, with sales now exceeding 5% of overall auto sales. Tata Technologies, with its extensive expertise in automotive technology, is well-positioned to capitalise on this EV trend.

CEO, Warren Harris, says "We see very strong tailwinds as the industry pivots towards alternative propulsion systems and connected services." Despite some OEMs suggesting a slowdown in EV sector growth, Harris remains upbeat, believing otherwise from a product engineering perspective. Additionally, he highlighted optimism in the aerospace sector, citing their relationship with Airbus.

Joindre Capital has initiated a 'Buy' rating on Tata Technologies. They believe that the company's expertise in the engineering, research and development (ER&D) space, along with its long-standing relationships with OEMs worldwide, increasing outsourcing demand, and rising EV adoption will drive growth.

4. Mahindra & Mahindra

This cars & utility vehicles manufacturer rose by 4.8% over the past week. The company recently signed an agreement with Volkswagen group, where it will equip its new electric platform INGLO with electric components from Volkswagen´s Modular electric drive matrix (MEB) and unified cells. The company plans to launch five all-electric SUVs on INGLO, starting December 2024.The company also signed an Memorandum of understanding (MoU) with Adani Total Energies E-Mobility to set up EV charging infrastructure across the country. 

Trendlyne’s Forecaster estimates the company's net profit to grow by 27.8% to Rs 1,980 crore in Q4FY24 due to its strong PV order book in Q4FY24, while revenue should improve by 6.7% YoY. The firm beat the Trendlyne Forecaster’s estimates for Q3FY24 for net profit by 5.9%, but missed the revenue estimate by 0.3%.

The company’s total wholesales for FY24 rose by 18.1% YoY to 8.3 lakh units and the passenger vehicles domestic wholesales rose by 12.9% YoY to 40,631 units. But rural demand has been weak, driving YoY declines in  commercial vehicles, 3W and tractor wholesales – these fell 6.1%, 7.3%, 27.8% respectively. 

However, demand is reportedly strong for its new launches, specially the SUV’s priced above Rs 10-12 lakh. The company is ramping up its SUV production capacity to 49k units per month, from the current 40-42k units. 

Rajesh Jejurikar, ED & CEO, Auto & Farm Sectors of the firm, said, “ New bookings continue to be healthy at around 50,000 per month and the order backlog stands at around 2.3 lakh units. The rural economy is experiencing challenges, but tractor subsidies have decreased, benefiting the industry. Farm machinery growth is 29%, with a goal of 40% this year. In the urban space there are segments, particularly the rich, where we are seeing increased demand for certain vehicles.”

ICICI Direct recommends a ‘Buy’ for Mahindra & Mahindra with a target price of Rs 2,225. The brokerage maintains its bullish stance on M&M due to the company's market leadership in the SUV and tractor segments. The brokerage expects sales to grow at 14.2% CAGR in FY23-26E amid 9.4% blended volume CAGR. The adjusted PAT is expected to grow to Rs 11,496 crore by FY26E.

The brokerage currently values M&M based on Sum Of The Parts (SOTP) at Rs 2,225 (11x FY26E standalone EV/EBITDA and Rs 300 per share value accruing for the Electric PV arm).

5. Aditya Birla Fashion and Retail (ABFRL):

This department stores company rose by 15.5% in the past week. The rise came after the company announced a vertical demerger of its Madura Fashion & Lifestyle (MFL) business into a separate listed entity. This move aims to create two growth engines, with distinct plans to create value and allocate capital. Managing Director Ashish Dikshit said, “The restructuring will help the company focus on different strategies for each business segment.”

MFL’s portfolio consists of lifestyle, casual wear, and sportswear brands like Louis Phillippe, Van Heusen, Allen Solly, Peter England, American Eagle, Forever 21, and Reebok. After the demerger, ABFRL’s portfolio will consist of value retail, ethnic, luxury, and digital brands. The demerger will allow ABFRL to focus on high-growth segments where there are tailwinds from a shift to premiumization, the rise of super-premium and luxury brands, and rapid growth in digital-first brands.

Trendlyne’s Forecaster estimates the firm to report a loss of Rs 293.2 crore in Q4FY24 and expects revenue to fall 16.9% YoY. The company reported a net loss of Rs 186.9 crore in Q4FY23. Analysts are cautious due to the company’s rising debt and inefficient working capital management. They believe that any misstep can lead to inventory liquidation-led margin loss or derailed growth. ABFRL also appears in a screener for stocks with low Piotroski scores (companies with weak financials).

Axis Securities maintains a ‘Hold’ on the company on the back of near-term challenges, such as a slowdown in discretionary spending due to lower demand from tier-2/3/4 cities, a sharp increase in debt, and an increase in ad spending.

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

 
Trendlyne Marketwatch
Trendlyne Marketwatch
05 Apr 2024
Market closes flat, Godrej Properties sells inventory worth Rs 2,690 crore in its Mumbai project
By Trendlyne Analysis

Nifty 50 closed at 22,513.70 (-1.0, 0%), BSE Sensex closed at 74,248.22 (20.6, 0.0%) while the broader Nifty 500 closed at 20,715.10 (50.5, 0.2%). Market breadth is in the green. Of the 2,118 stocks traded today, 1,286 were gainers and 798 were losers.

Indian indices closed flat after opening marginally lower on a volatile day of trade. The Indian volatility index, Nifty VIX, rose 1.1% and closed at 11.3 points. IndusInd Bank closed in the green after its Q4FY24 net advances rose 18% YoY to Rs 2.9 lakh crore and deposits grew by 14% YoY to Rs 3.4 lakh crore. 

Nifty Smallcap 100 and Nifty Midcap 100 wwclosed in the green, outperforming the benchmark index. Nifty Bank and Nifty FMCG closed higher than their Thursday close. According to Trendlyne’s sector dashboard, Fertilizers emerged as the top-performing sector of the week, with a rise of 12.3%.

Major Asian indices closed in the red, except for India’s BSE Sensex closing flat. European indices traded lower amid weak global cues. US index futures traded in the green after falling on a volatile day on Thursday. Brent crude futures traded flat after rising for six consecutive trading sessions.

  • Relative strength index (RSI) indicates that stocks like Thermax, Siemens, Muthoot Finance and Quess Corp are in the overbought zone.

  • Godrej Properties sells inventory worth Rs 2,690 crore in its Mumbai project, Godrej Reserve, with an estimated revenue potential of Rs 7,000 crore.

  • Sobha is falling despite its Q4FY24 sales value rising 2.8% YoY to Rs 1,504 crore. Average price realisation improves by 13.5% YoY to Rs 11,230 per square feet, supported by the launch six projects.

  • Globus Spirits is rising as it signs a new Joint Venture (JV) agreement with ANSA McAL to manufacture, source, and distribute beer in India, with an initial focus on introducing the Carib beer brand in the Indian market.

  • Marico reports low-single-digit consolidated revenue growth in the Q4FY24, led by year-end price cuts in key domestic portfolios. In the coming years, the company anticipates low double-digit operating profit growth driven by a robust increase in operating margin. According to the company, it is expected to meet its full-year margin guidance.

  • Amber Enterprises India's arm, AT Railway Sub Systems, and South Korea-based Yujin Machinery sign a new Joint Venture (JV) agreement to manufacture a range of driving gears, couplers, and pantographs for various types of rolling stocks.

  • Bharti Hexacom's Rs 4,275 crore IPO gets bids for 29.9X the available 4.1 crore shares on offer on the third day of bidding. The retail investor quota gets bids for 2.8X the available 75 lakh shares on offer.

  • HDFC Life Insurance receives a GST order from the state tax unit of Gujarat, amounting to Rs 103 crore. The order relates to issues such as short payment of GST, excess availment of Input Tax Credit, and short reversal of proportionate Input Tax Credit.

  • HSBC Global Research maintains a 'Buy' rating on Voltas with an upgraded target price of Rs 1,350. The brokerage highlights Voltas' leading position in the underpenetrated room AC category in India. It has also increased margin assumptions for the unitary cooling products segment by 40–50bps for FY24–26.

  • Bajaj Finance's AUM grows by 34% YoY to Rs 3.3 lakh crore in Q4FY24. New loans booked also improve by 4% YoY to 7.9 million in the quarter. It appears in a screener of stocks where revenue has increased for the past eight quarters.

  • Special consumer services, aerospace, photographic products, and copperindustries surge more than 14% over the past week.

  • Foreign institutional investors invest Rs 653 crore in the equity market over the past week, according to Trendlyne's FII dashboard. Index options witness the highest inflow of Rs 1.2 lakh crore from foreign investors. Meanwhile, mutual funds are net buyers in the equity market, injecting Rs 499 crore during the same period.

  • The equity held by foreign investors in HDFC Bank declined in the March quarter, failing to meet the requirements set by index provider MSCI to raise the stock's weight on the index. The stake held by foreign investors in the bank dropped to 24.95%, slightly below the MSCI requirement of 25%, as FPIs reduced their stake.

  • Puravankara is rising as its FY24 sales jump 90% YoY to Rs 5,914 crore. The collections for the quarter increase by 60% YoY to Rs 3,609 crore.

  • Cipla receives six observations from the US FDA following a good manufacturing practices inspection at its facility Patalganga, Maharashtra.

  • ICICI Direct keeps its 'Buy' rating on ACC with an upgraded target price of Rs 3,225 per share. This indicates a potential upside of 24.8%. The brokerage highlights ACC's strategic growth position, driven by operational efficiencies, robust volume growth, and a strong balance sheet with a net-cash position. It forecasts a revenue CAGR of 8.8% for FY24-26.

  • Nadir Godrej, Chairman of Godrej Agrovet, foresees palm oil prices to remain steady despite earlier expectations of a rise due to high demand. Going forward, he anticipates improved margins for the company and has high expectations for its cattle feed division.

  • The Reserve Bank of India approves the appointment of Anil Kumar Sharma as Executive Director and Chairman of Equitas Small Finance Bank, effective April 25, 2024.

  • Aavas Financiers surges in trade as its AUM rises 22% YoY to Rs 17,300 crore in Q4FY24. The company’s disbursements grow 20% YoY to Rs 18,900 crore during the quarter.

  • Prestige Estates Projects rises as it acquires 21 acres in Bengaluru for Rs 450 crore to develop a residential project, with an estimated gross development value of Rs 4,500 crore.

  • The RBI decides to keep the policy repo rate unchanged at 6.5% during the Monetary Policy Committee meeting. It forecasts FY25 GDP growth at 7% and expects retail inflation to remain at 4.5% for the fiscal year. Revised CPI inflation estimates for Q1 and Q2 of FY25 stand at 4.9% and 3.8% respectively.

  • IndusInd Bank's Q4FY24 net advances rise 18% YoY to Rs 2.9 lakh crore and deposits grow by 14% YoY to Rs 3.4 lakh crore. The bank's CASA ratio stands at 40.1%.

  • Rashi Peripherals surges as it bags two orders worth Rs 1,511 crore from NMDC Data Centre to supply information and communication technology (ICT) products.

  • Kalyan Jewellers India rises as its India operations report a revenue growth of 38% YoY in Q4FY24, driven by healthy same-store sales growth. Its Middle East business also records a 14% YoY revenue increase. The company appears in a screener of stocks with improving book value per share for the past two years.

  • Macrotech Developers' Q4FY24 pre-sales rise 40% YoY to Rs 4,230 crore. The collections for the quarter increase by 20% YoY to Rs 3,510 crore.

  • Nifty 50 was trading at 22,464.20 (-50.5, -0.2%), BSE Sensex was trading at 74,037.31 (-190.3, -0.3%) while the broader Nifty 500 was trading at 20,646.75 (-17.9, -0.1%).

  • Market breadth is in the green. Of the 1,877 stocks traded today, 1,056 were gainers and 765 were losers.

Riding High:

Largecap and midcap gainers today include Indraprastha Gas Ltd. (460.10, 5.3%), SBI Cards and Payment Services Ltd. (730.35, 5.2%) and ICICI Lombard General Insurance Company Ltd. (1,717.80, 4.9%).

Downers:

Largecap and midcap losers today include Linde India Ltd. (6,782.65, -3.6%), Vedant Fashions Ltd. (913.55, -3.1%) and Adani Power Ltd. (626.70, -2.4%).

Movers and Shakers

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

Top high volume gainers on BSE included IIFL Finance Ltd. (401.25, 13%), Aavas Financiers Ltd. (1,598.55, 10.1%) and NBCC (India) Ltd. (138.35, 9.3%).

Top high volume losers on BSE were Vedant Fashions Ltd. (913.55, -3.1%) and Poly Medicure Ltd. (1,569, -0.2%).

Asahi India Glass Ltd. (595.55, 4.9%) was trading at 26.5 times of weekly average. Indraprastha Gas Ltd. (460.10, 5.3%) and Gujarat Gas Ltd. (548.35, 0.3%) were trading with volumes 5.6 and 5.2 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

32 stocks hit their 52 week highs,

Stocks touching their year highs included - BASF India Ltd. (3,627.50, 1.5%), Bharat Electronics Ltd. (224.50, 1.9%) and Indus Towers Ltd. (314, 2.4%).

12 stocks climbed above their 200 day SMA including Aavas Financiers Ltd. (1,598.55, 10.1%) and Indraprastha Gas Ltd. (460.10, 5.3%). 5 stocks slipped below their 200 SMA including Finolex Cables Ltd. (993.50, -1.9%) and ZF Commercial Vehicle Control Systems India Ltd. (14,736.50, -1.6%).

 
Trendlyne Marketwatch US
Trendlyne Marketwatch US
05 Apr 2024

Markets closed down today . Dow Jones was trading at 38599.73 (33.6, 0.1%) , S&P 500 was trading at 5151.28 (4.1, 0.1%) while the broader US Tech Composite was trading at 16084.02 (11.2, 0.1%)

Riding High:

Largecap and midcap gainers today include Candel Therapeutics Inc (6.90, 310.7%), two - Ordinary Shares - Class A (10.70, 71.5%) and Allurion Technologies Inc (2.89, 67.1%).

Downers:

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

IXIX-CFD: highs, lows and moving averages

52 stocks outperformed, hitting 52 week highs, Stocks touching their year highs included - Williams Cos Inc (39.01, -0.9%), Progressive Corp. (208.63, -1.0%), NRG Energy Inc. (70.56, -2.0%) and Raymond James Financial, Inc. (127.91, -1.3%).

11 stocks climbed above their 200 day SMA including Conagra Brands Inc (30.40, 4.6%) and Ulta Beauty Inc (451.76, 2.7%).

9 stocks slipped below their 200 SMA including Aon plc. - Ordinary Shares - Class A (313.35, -3.4%) and Dollar Tree Inc (129.96, -3.2%).

188 stocks are currently overbought in RSI including Conagra Brands Inc (30.40, 4.6%), Ulta Beauty Inc (451.76, 2.7%) and Kellogg Co (57.51, 1.6%).

150 stocks are currently oversold in RSI including Aon plc. - Ordinary Shares - Class A (313.35, -3.4%) and Dollar Tree Inc (129.96, -3.2%).

 
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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
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%).