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Trendlyne Marketwatch
Trendlyne Marketwatch
27 Mar 2024
Market closes higher, Gensol Engineering appoints Kapil K Nirmal as Chief Executive Officer
By Trendlyne Analysis

Nifty 50 closed at 22,141.05 (136.4, 0.6%), BSE Sensex closed at 72,996.31 (526.0, 0.7%) while the broader Nifty 500 closed at 20,099.35 (94.1, 0.5%). Of the 2,133 stocks traded today, 823 showed gains, and 1,270 showed losses.

Indian indices maintained their gains from the afternoon session and closed in the green. The Indian volatility index, Nifty VIX, fell 0.9% and closed at 12.7 points. Larsen & Toubro closed higher after the company’s buildings and factories vertical won multiple orders worth Rs 2,500-5,000 crore from domestic and international markets.

Nifty Smallcap 100 closed in the green, while the Nifty Midcap 100 ended the trading session flat. Nifty Infra and Nifty Energy closed higher than their Tuesday close.  According to Trendlyne’s sector dashboard, Oil & Gas emerged as the top-performing sector of the day, with a rise of 2.2%.

Major Asian indices closed in the red, except for India’s BSE Sensex and Japan’s Nikkei 225 indices closing in the green. Most European indices traded flat or higher, amid mixed global cues. US index futures traded higher, indicating a positive start to the trading session. Brent crude oil futures traded lower after closing in the red on a volatile day on Tuesday.

  • Relative strength index (RSI) indicates that stocks like Avenue Supermarts, Cummins India, Apar Industries and Torrent Power are in the overbought zone.

  • Ipca Laboratories inks an agreement with Omexa Formulary to develop an anti-cancer biosimilar for the global market.

  • Lupin receives a Rs 477.3 crore income tax demand for the assessment year 2021-22 from the Income Tax Department. The company plans to file a rectification application and an appeal regarding the demand.

  • Tata Motors' EV business, Tata Passenger Electric Mobility, signs a memorandum of understanding (MoU) with Hindustan Petroleum Corp to set up EV charging infrastructure in the country. The companies are also planning to launch a co-branded radio-frequency Identification (RFID) card for a payment system at the charging stations.

  • According to BNP Paribas, increased raw material costs provide a new challenge for FMCG firms, possibly resulting in lower-than-projected Q4 profitability. The brokerage notes that rising raw material costs, such as crude oil, palm oil, and lactic acid bacteria used in dairy products, could affect margin estimates.

  • SRM Contractors' Rs 130.2 crore IPO gets bids for 10.8X the available 43.4 lakh shares on offer on the second day of bidding. The retail investor quota gets bids for 9.8X the available 21.7 lakh shares on offer.

  • Reliance Power rises as its arms Kalai Power and Reliance Cleangen settle debt worth Rs 1,023 crore with Authum Investment.

  • Tanla Platforms, Capri Global Capital, Suzlon Energy, and Vodafone Ideaunderperform their respective industries by more than 20% in the past month.

  • Sheetij Agarwal, Whole Time Director at Shyam Metalics and Energy, discusses plans for a greenfield expansion into aluminium rolled products with an investment of about Rs 450 crore. He also reveals that the company has secured a letter of intent for a composite license for the Surjagad-1 iron ore block, covering 1,526 hectares.

  • ICICI Direct retains its 'Buy' rating on PNC Infratech with an upgraded target price of Rs 550. This indicates a potential upside of 25.6%. The brokerage believes that the resultant cash from asset monetisation will free up capital and drive scalability for the company. It expects the company's revenue to grow at a CAGR of 11.4% over FY23-26.

  • HDFC Mutual Fund increases its shareholding in Crompton Greaves Consumer Electricals by 2.4% to 9.5% as of March 22.

  • Gensol Engineering appoints Kapil K Nirmal as Chief Executive Officer for Solar EPC business in the Middle East.

  • ICICI Bank is facing criticism for allegedly trying to influence ICICI Securities' minority shareholders to support its proposal to delist the broking and investment banking division.

  • Aster DM Healthcare is plunging as equity firm, Olympus, reportedly offloads 5.1 crore shares (or 10.1% stake) in the company for Rs 2,070 crore in a block deal.

  • Adani Power rises as it receives the Competition Commission of India’s approval for the 100% acquisition of Lanco Amarkantak Power.

  • Caplin Point Laboratories rises as its arm, Caplin One Labs, starts operations at its Oncology facility at Kakkalur, near Chennai. The investment commitment for the facility is Rs 150 crore.

  • UBS upgrades ABB India to 'Buy' with an upgraded target price of Rs 7,550. The brokerage notes high double-digit growth across domestic and export orders, particularly from the motion and electrification segments. It expects a 23% increase in order inflow over 2023–26E.

  • Larsen & Toubro's buildings and factories vertical wins multiple orders worth Rs 2,500-5,000 crore from domestic and international markets. It secures a contract from the Ministry of Health, Sultanate of Oman, to construct a hospital and another to build a temple access corridor in Assam.

  • Prataap Snacks rises as it announces the commencement of commercial production at its new Jammu & Kashmir unit. It has a total capacity of about 10,000 MT per annum.

  • Sanofi India is rising after announcing a partnership with Cipla for the distribution and promotion of its central nervous system (CNS) product range in India. According to the partnership, Cipla will distribute six of Sanofi's CNS brands.

  • Aster DM Healthcare declines more than 6%, as 5.1 crore shares (10.1% equity), amounting to Rs 2,070 crore, reportedly change hands in a large trade.

  • Reliance Industries rises as Goldman Sachs maintains its 'Buy' rating on the stock with an upgraded target price of Rs 3,400. This indicates a potential upside of 15.2%. The brokerage predicts improvements in the company's overall performance as capex peaks in its retail and Jio Telecom sectors.

  • Central Depository Services (India) falls as Standard Chartered Bank is likely to sell its entire 7.2% stake for $151 million through a block deal.

  • Oil & gas stocks like Aegis Logistics, Reliance Industries, Castrol India and Oil India rise more than 2% in trade. All constituents of the broader Nifty Oil & Gas index are also trading in the green.

  • Piramal Enterprises invests Rs 2,000 crore in its subsidiary, Piramal Capital & Housing Finance, via a rights issue. The subsidiary will use the fund for business or general corporate purposes.

Riding High:

Largecap and midcap gainers today include Supreme Industries Ltd. (4,189.85, 6.1%), ABB India Ltd. (6,279.95, 5.9%) and NHPC Ltd. (89.90, 4.9%).

Downers:

Largecap and midcap losers today include Bajaj Holdings & Investment Ltd. (8,007.15, -4.8%), Solar Industries India Ltd. (8,879.75, -4.5%) and Relaxo Footwears Ltd. (782.75, -4.0%).

Volume Shockers

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

Top high volume gainers on BSE included NLC India Ltd. (238.70, 11.0%), JM Financial Ltd. (77.90, 8.3%) and Lloyds Metals & Energy Ltd. (608, 7.4%).

Top high volume losers on BSE were Aster DM Healthcare Ltd. (405.55, -7.2%), Bajaj Holdings & Investment Ltd. (8,007.15, -4.8%) and Relaxo Footwears Ltd. (782.75, -4.0%).

Lakshmi Machine Works Ltd. (14,825, 2.6%) was trading at 74.2 times of weekly average. Prism Johnson Ltd. (177.90, 4.3%) and Procter & Gamble Hygiene & Healthcare Ltd. (16,564.35, 0.3%) were trading with volumes 24.1 and 10.0 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

23 stocks overperformed with 52-week highs, while 7 stocks were underachievers and hit their 52-week lows.

Stocks touching their year highs included - Bajaj Auto Ltd. (9,124.30, 1.8%), Indus Towers Ltd. (282.30, -0.5%) and Bosch Ltd. (30306.65, -1.2%).

Stocks making new 52-week lows included - Relaxo Footwears Ltd. (782.75, -4.0%) and Vinati Organics Ltd. (1,499.70, -3.8%).

18 stocks climbed above their 200 day SMA including Ramkrishna Forgings Ltd. (701.50, 7.0%) and Supreme Industries Ltd. (4189.85, 6.1%). 8 stocks slipped below their 200 SMA including TV18 Broadcast Ltd. (46.50, -4.0%) and Garware Technical Fibres Ltd. (3,252.45, -2.7%).

 
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The Baseline
27 Mar 2024
5 stocks to buy from analysts this week
By Abhiraj Panchal

1. Varun Beverages:

Axis Direct maintains its ‘Buy’ call on this non-alcoholic beverages company and Pepsi bottler with a target price of Rs 1,550, indicating an upside of Rs 10.6%. Analysts Preeyam Tolia and Suhanee Shome say, “The company achieved a strong all-round performance, despite a weak and challenging demand environment. It saw a volume growth of 13.9% YoY in  CY23 driven by robust double-digit volume expansion.” 

The analysts are optimistic about the company’s focus on investment and expansion of manufacturing facilities at Bundi and Jabalpur for juices and value-added dairy products. It is also setting up new plants in Uttar Pradesh, Maharashtra, and Odisha, which will increase its total capacity by 45%. The company also announced the acquisition of South African-based BevCo. The analysts believe that this acquisition will provide significant synergy benefits along with a market expansion opportunity.

The analyst expects the company to continue its growth momentum led by expansion in its distribution reach mainly in rural areas with an expected addition of 4-5 lakh outlets per year.

2. Zydus Lifesciences:

Sharekhan reiterates a ‘Buy’ call on this pharma company with a target price of Rs 1,100. This indicates an upside of 7.9%. In February, the company’s domestic sales and volumes grew 11.2% YoY and 0.8% YoY, respectively. The analysts note that this growth was driven by key brands like Lipaglyn, Monotax and Amicin. 

Analysts like Zydus Lifesciences’ move to acquire the Liqmed business, which has 16 products approved in the UK and five new products approved in the US. Liqmeds currently is a profitable business with a small revenue size which is expected to scale up. 

The analysts say, “Zydus is focusing on specialty products both in India and the US, through its rare and orphan disease portfolio which will aid the firm towards reaching $100 million in the specialty portfolio by FY26.” They expect Zydus Lifesciences’ earnings to grow by 15% CAGR from FY24-26 led by approvals in multiple high-margin businesses like specialty and injectables, leading to double-digit growth in both the US and India.

3. Granules India:

ICICI Direct recommends a ‘Buy’ call on this pharma company with a target price of Rs 515, indicating an upside of 18.1%. Analyst Siddhant Khandekar is positive about the company due to its plans to expand its product and therapeutic basket. He says, “The company is focusing more on formulations to drive growth backed by volumes, especially in the US and Europe. It plans to file eight products in the US every year. The analyst likes the firm also due to its backward integration plans with a green technology focus. 

Khandekar says that despite its recent history of flat revenue growth, Granules India’s margins have improved. He believes that this was a result of 47% YoY growth in formulations to Rs 766 crore, driven by increased volumes in the US across all major products, especially controlled substances. He recommends the call on the back of the company’s compelling risk-reward matrix and its ability to play in its strength areas.

4. Mahanagar Gas:

HDFC Securities recommends a ‘Buy’ call on this utilities company with a target price of Rs 1,535. This indicates an upside of 12.8%. Analysts Harshad Katkar, Nilesh Ghuge, Akshay Mane and Prasad Vadnere believe that the company’s recent price correction – due to the Petroleum and Natural Gas Regulatory Board’s notice on the end of infrastructure exclusivity in Mumbai – is overdone. The analysts say that this notice will not have a material impact on the company’s operations as it would be extremely difficult for any competitor to access significantly cheaper natural gas and set up a new CNG station network at similar costs and locations.

The analysts are also optimistic about the company due to the recent improvement in new CNG vehicle registrations. New CNG vehicle registrations for February 2024 rose 64% YoY to 6,196 units. They expect the company’s volume growth to accelerate, led by its increased focus on expanding the CNG retail network, its marketing efforts, improvement in CNG vehicle registrations, incremental volume growth from UEPL acquisition, and additional volumes from the industrial segment. They expect a 9% CAGR volume growth over FY24-26.

5. Prince Pipes & Fittings:

Geojit BNP Paribas reiterates its ‘Buy’ call on this plastic products manufacturer with a target price of Rs 659, indicating an upside of 15.9%. In 9MFY24, the company’s revenue declined by 6.1% YoY, attributed to a drop in realization. However, analyst Anil R believes that going forward, steady real estate sector and plumbing demand will drive volume growth, and he anticipates revenue to grow at an 18.6% CAGR from FY24-26. He expects the margins to remain healthy at 13.4% over FY24-26, supported by lower input prices and a better product mix. 

Anil R is also optimistic about the company’s acquisition of the Aquel bathware brand. He believes that at peak capacity, the revenue contribution from Aquel would be Rs 120 crore. He concludes, “We anticipate that healthy demand from construction and plumbing, a strong summer, better pricing actions, and stable input prices will drive volumes.”

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

(You can find all analyst picks here)

 
Trendlyne Marketwatch US
Trendlyne Marketwatch US
27 Mar 2024

Markets closed down today . Dow Jones was trading at 39318.38 (-26.1, -0.1%) , S&P 500 was trading at 5211.95 (-4.5, -0.1%) while the broader US Tech Composite was trading at 16355.07 (-11.6, -0.1%)

Riding High:

Largecap and midcap gainers today include Etao International Co Ltd. (4.72, 1715.4%), Homology Medicines Inc (16.89, 1696.8%) and Sizzle Acquisition Corp - Units (1 Ord & 1/2 War) (20.88, 122.1%).

Downers:

Largecap and midcap losers today include Altitude Acquisition Corp - Ordinary Shares - Class A (0, -100%), Frontier Investment Corp - Ordinary Shares - Class A (0, -100%) and L Catterton Asia Acquisition Corp - Ordinary Shares - Class A (0, -100%).

IXIX-CFD: highs, lows and moving averages

33 stocks outperformed, hitting 52 week highs, Stocks touching their year highs included - Celanese Corp - Ordinary Shares - Series A (166.47, -0.9%), Allstate Corp (The) (171.11, 1.3%), Netflix Inc. (631.74, 0.7%) and Boston Scientific Corp. (67.89, 0.9%).

4 stocks climbed above their 200 day SMA including McCormick & Co., Inc. - Ordinary Shares (Non Voting) (76.91, 10.0%) and United Airlines Holdings Inc (45.73, 1.9%).

10 stocks slipped below their 200 SMA including Dominion Energy Inc (46.86, -2.9%) and Boston Properties, Inc. (61.51, -2.2%).

121 stocks are currently overbought in RSI including McCormick & Co., Inc. - Ordinary Shares (Non Voting) (76.91, 10.0%), United Airlines Holdings Inc (45.73, 1.9%) and Kimberly-Clark Corp. (126.26, 0.9%).

143 stocks are currently oversold in RSI including Dominion Energy Inc (46.86, -2.9%) and Boston Properties, Inc. (61.51, -2.2%).

 
Trendlyne Marketwatch
Trendlyne Marketwatch
26 Mar 2024
Market closes lower, RateGain Travel Tech enters a strategic partnership with Summerwind GSA
By Trendlyne Analysis

Nifty 50 closed at 22,004.70 (-92.1, -0.4%), BSE Sensex closed at 72,470.30 (-361.6, -0.5%) while the broader Nifty 500 closed at 20,005.25 (10.7, 0.1%). Market breadth is overwhelmingly negative. Of the 2,146 stocks traded today, 640 were in the positive territory and 1,471 were negative.

Indian indices maintained the losses from the afternoon session and closed in the red. The volatility index, Nifty VIX, rose by 4.9% and closed at 12.8 points. Spicejet inked a settlement agreement with Export Development Canada to resolve liabilities totaling $90.8 million (Rs 755 crore). This settlement will generate savings worth $68.3 million (Rs 567 crore) for Spicejet. 

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

Most European indices trade flat, except for Italy’s FTSE MIB trading higher. US indices futures trade higher, indicating a positive start. Sales of new homes in the US fell to 6.6 million units in February, against estimates of 6.8 million units.

  • Info Edge (India) sees a short buildup in its March 28 future series as its open interest rises 26.8% with a put-call ratio of 0.4.

  • RateGain Travel Technologies rises as it announces a strategic partnership with Summerwind GSA to provide AI-powered tools to navigate market trends, adjust to pricing fluctuations dynamically and harness actionable intelligence.

  • Avenue Supermarts rises as ICICI Securities upgrades the stock to ‘Add’ and expects it to outperform Nestle India in the medium term. The brokerage maintains a ‘Hold’ rating on Nestle.

  • Zydus Lifesciences touches a new 52-week high of Rs 1,027.8 as it receives final approval from the US FDA to market Letermovir tablets. It is used to prevent viral disease in bone marrow and kidney transplant patients. The tablet has estimated annual sales of $289.5 million in the US.

  • According to a poll of economists, the RBI's Monetary Policy Committee is expected to maintain the status quo during the upcoming MPC meeting, while exercising caution regarding inflation.

  • Beige reportedly plans to sell a 2.9% stake in Mankind Pharma through block deals today. The total deal value is estimated to be around Rs 2,459.5 crore.

  • SRM Contractors' Rs 130.2 crore IPO gets bids for 3.6X the available 43.4 lakh shares on offer on the first day of bidding. The retail investor quota gets bids for 3.6X the available 21.7 lakh shares on offer.

  • Spicejet rises as it inks a settlement agreement with Export Development Canada to resolve liabilities totalling $90.8 million (Rs 755 crore). This settlement will generate savings worth $68.3 million (Rs 567 crore) for Spicejet.

  • Bharti Hexacom sets its IPO price band at Rs 542-570 per share. The issue, valued at Rs 4,275 crore, is completely an offer-for-sale. The issue opens on April 3.

  • Airlines, heavy electrical equipment, department stores, and other telecom servicesindustries rise more than 9% over the past month.

  • HG Infra Engineering rises as it bags an order worth Rs 534 crore from Jodhpur Vidyut Vitran Nigam for the engineering, procurement and construction (EPC) of a 125.7 MW solar power plant.

  • Hinduja Global Solutions enters into an agreement with its arm, Indusind Media and Communications, to sell its optical fibre assets, for Rs 208 crore

  • S&P Global upgrades India's FY25 GDP growth forecast by 40 basis points to 6.8%, below the RBI and the Centre's 7% projection. It sees 7.6% growth in FY24, noting inflation and higher rates have slowed household spending, impacting H2FY24 GDP growth in demand-driven economies like India.

  • Hindustan Aeronautics rises sharply as it bags an order worth Rs 194 crore from the Guyana Defence Force to supply two Hindustan-228 aircraft.

  • Lupin announces plans to sell its trade generics business in India on a slump sale basis to Lupin Life Sciences, its wholly-owned subsidiary, for approximately Rs 100-120 crore.

  • Rail Vikas Nigam surges as it signs a Rs 229.4 crore memorandum of understanding (MoU) with the Airports Authority of India (AAI) to construct an underpass. The underpass will connect the operational area to the AAI residential colony in Kolkata.

  • Jefferies upgrades InterGlobe Aviation (IndiGo) to 'Hold', with a target of Rs 3,435. The brokerage predicts strong capacity growth, stating flight groundings haven't significantly affected the company. However, it warns pilot fatigue could restrict growth if not managed properly.

  • Ambuja Cements, promoter of Sanghi Industries, sells a 2% stake in the company on Friday, to meet SEBI norms. It now holds a 60.4% stake.

  • JSW Energy's step-down subsidiary, JSW Renewable Energy, signs a business transfer agreement with Reliance Power to buy the 45 MW Vashpet Wind Project for Rs 132 crore.

  • Subir Malhotra, promoter of Capacit’e Infraprojects, sells his entire 3% stake (around 25.3 lakh shares) in the company, worth approximately Rs 69.4 crore, in a bulk deal on Friday. Paragon Partners Growth Fund also sells a 1% stake in the company. Meanwhile, Valiant Mauritius Partners buys a 5.1% stake.

  • Mankind Pharma declines more than 2% as 7.1 lakh shares (3.2% equity), amounting to Rs 2,736.8 crore, reportedly change hands in multiple block deals.

  • Adani Ports & SEZ is rising as it acquires a 95% stake in Gopalpur Ports for Rs 1,349 crore from its existing shareholders. The company has bought a 56% stake from SP Port Maintenance and a 39% stake from Orissa Stevedores.

  • UNO Minda rises as it inks an agreement with Starcharge Energy to manufacture and supply electric vehicle supply equipment in India.

  • Maruti Suzuki is falling as it recalls 11,851 units of Baleno and 4,190 units of WagonR due to faulty fuel pumps causing engine stalling or starting issues.

  • Welspun Corp's Saudi Arabian subsidiary, East Pipes Integrated Company for Industry (EPIC), bags a SAR 230 million (approx. Rs 512 crore) contract from Saline Water Conversion Corp (SWCC) to manufacture and supply steel pipes.

  • Nifty 50 was trading at 22,058.65 (-38.1, -0.2%), BSE Sensex was trading at 72,396.97 (-435.0, -0.6%) while the broader Nifty 500 was trading at 19,976.75 (-17.9, -0.1%).

  • Market breadth is in the green. Of the 1,933 stocks traded today, 1,000 showed gains, and 854 showed losses.

Riding High:

Largecap and midcap gainers today include Torrent Power Ltd. (1,405, 9.5%), InterGlobe Aviation Ltd. (3,492.05, 6.2%) and Oil India Ltd. (611.45, 5.1%).

Downers:

Largecap and midcap losers today include General Insurance Corporation of India (327.10, -2.4%), Patanjali Foods Ltd. (1,348.30, -2.3%) and Zee Entertainment Enterprises Ltd. (139.25, -2.3%).

Volume Rockets

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

Top high volume gainers on BSE included Apar Industries Ltd. (7,050.35, 11.1%), Gujarat Pipavav Port Ltd. (216.30, 9.3%) and Finolex Cables Ltd. (967.35, 8.7%).

Top high volume loser on BSE was Honeywell Automation India Ltd. (37,333, -0.2%).

Mankind Pharma Ltd. (2,250.50, 1.7%) was trading at 49.8 times of weekly average. Max Financial Services Ltd. (987.75, 4.6%) and Redington Ltd. (207.40, 1.0%) were trading with volumes 5.0 and 4.2 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

23 stocks made 52 week highs, while 11 stocks tanked below their 52 week lows.

Stocks touching their year highs included - Indus Towers Ltd. (283.65, 4.6%), Bosch Ltd. (30,680.35, 1.7%) and Zydus Lifesciences Ltd. (1,017.05, 1.7%).

Stocks making new 52 weeks lows included - Delta Corp Ltd. (117.70, -2.1%) and Rajesh Exports Ltd. (279.45, -1.9%).

14 stocks climbed above their 200 day SMA including V-Mart Retail Ltd. (2,076.50, 3%) and Esab India Ltd. (5,328.10, 2.3%). 9 stocks slipped below their 200 SMA including Trident Ltd. (37.40, -3.2%) and Pfizer Ltd. (4,272.15, -1.8%).

 
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The Baseline
22 Mar 2024
Five Interesting Stocks Today

1. Bharat Electronics:

This defence stock rose by 1.2% in the past week outperforming the Nifty 50, as it won orders worth Rs 1,940.4 crore from the Indian Navy. The first order for the supply of communication and electronic warfare sensors is worth Rs 847.7 crore, while the second order for the supply of line-replaceable units is worth Rs 1,092.7 crore. The company also announced a second interim dividend worth Rs 0.7 per equity share for FY24. 

The company’s YTD FY24 order inflow stands at Rs 32,716.3 crore (compared to Rs 20,000 crore in FY23). The total current order book is to be around Rs 73,500 crore. According to the management, execution for most projects will occur between three to four years. 

Bharat Electronics manufactures specialised electronics for the Indian defence industry. It is engaged in the development of new products, technology modules, subsystems and components. It is well-positioned to capture growth opportunities in Indian defence and space electronics, as analysts expect this space to grow at 13-14% CAGR over FY24-27. Trendlyne’s Forecaster estimates profit to grow by 8% YoY in Q4FY24 while revenue improves by 28% YoY. 

Bharat Electronics currently generates around 90% of its revenue from the defence sector, supplying products to the Indian Government, while the non-defence segment contributes only around 9%. However, ICICI Direct recommends a ‘Buy’ call as it believes that the company’s strategy to diversify into the non-defence segment and increase exports & services will aid growth and de-risk its business. The brokerage also expects revenue and profit to grow at a CAGR of 14.3% & 17.6% respectively over FY24-26. The company appears in a screener for stocks with price or recommendation upgrades by brokers in the past month.

2. Swan Energy:

This realty stock has had a topsy-turvy week. It plunged by 23.8% in the two weeks ending March 15 after IFFCO (Indian Farmers Fertiliser Cooperative Limited - A government-owned fertilizer producer) moved the National Company Law Tribunal (NCLT) against the company and their joint venture (JV), Triumph Offshore. It asked the tribunal to restrain their JV firm from passing any resolution without its approval and issuing any shares to lenders against loans. 

IFFCO owns 49% of the JV (Triumph Offshore), while Swan Energy is the majority stakeholder with a 51% stake. The JV’s board consists of three nominees from Swan, two from IFFCO and two independent directors. IFFCO alleges that the JV signed an agreement with a consortium of banks to secure a term loan of Rs 1,604 crore by mortgaging the entire share capital of IFFCO. 

However, the stock recovered to rise by 27.7% over the past week after the NCLT denied interim relief to IFFCO and directed the JV to hold a board meeting before April 4 to discuss issues raised by the minority shareholder. The minority holder also alleged that the JV is pre-paying debt which could result in dilution of IFFCO’s shareholding in Triumph. 

On March 1, the company raised Rs. 3,000 crore through a qualified institutional placement (QIP). The issue price of the QIP was set at Rs. 670 per share. The funds raised through the QIP will be used for the modernisation of the recently acquired Reliance Naval and Engineering shipyard at Pipavav. Additionally, a portion of the funds will be allocated for project expansion and debt reduction.

After securing these funds, the company’s subsidiary, Swan LNG, prepaid a loan of Rs 2,206 crore along with interest to a consortium of banks on March 2. The company’s subsidiary Veritas also won an order worth Rs 155.9 crore in a consortium with Genesys International Corp from the Brihanmumbai Municipal Corporation (BMC). 

3. Sun Pharmaceuticals:

This pharmaceutical company is nearing its all-time highs following approval from the Australian Therapeutic Goods Administration for Winlevi, which is used to treat acne in people aged 12 and above. With approval from the Australian health authority, Sun Pharma will have the exclusive rights to sell the product in the country starting Q1FY25.

Sun Pharma’s global specialty segment sales, constituting 19.2% of overall sales, will get a boost from the recent additional marketing approval for Winlevi. According to Statista, the skin treatment market in Australia and Oceania is expected to grow at 6.0% CAGR during FY24-28, reaching USD 610 million.

However, due to deviations in manufacturing practices norms, the drug manufacturer had to recall 55,000 bottles of generic medication for treating gout from the American market. The US FDA stated that microbial contamination was reported in stagnant water in the duct of the manufacturing equipment. The affected lot was produced at Sun Pharma's Dadra-based plant.

Trendlyne’s Forecaster estimates that the company’s annual net profit growth will be 9% in FY24 compared to FY23. It estimates revenues in FY24 to grow by 9.9%.

Managing Director Dilip Shanghvi plans to increase the company's R&D spending to USD 1 billion in the next three to five years. The company aims to raise its R&D spend from the current 7% of revenues, to 9%. The company spends 40% of its overall R&D budget to develop new products. Shanghvi noted that while the R&D amount will increase, the percentage spent on new products will continue to be the same.

KR Choksey maintains a 'Buy' rating on Sun Pharma, and expects that global specialty sales will receive a lift from the addition of Australian marketing rights. Consequently, they have raised the company's sales and net income estimates to a CAGR of 10.9% and 16.0%, respectively, up from the previous estimates of 10.6% and 15.3%. With a target price of Rs 1,827, the stock has a potential upside of 13.6%.

4. Cochin Shipyard:

This marine ports & services company has risen by 12.2% in the past week. The company recently launched its first indigenously developed hydrogen fuel cell ferry, and has also started work on its Sea Shuttle zero emission container project, which is being built for Samskip, a Netherlands logistics firm.

Trendlyne’s Forecaster estimates profits to decline by 13.5% YoY due to high working capital requirements in Q4FY24, while revenue is expected to improve by 49% YoY. The firm beat Trendlyne Forecaster estimates for Q3FY24 for net profit by 86.1% and for revenue by 11.8% thanks to growth in its ship building and ship repair segments.

Cochin Shipyard’s current orderbook stands at Rs 21,500 crore in ship-building, with above Rs 800 crore worth of contracts in the ship-repair segment. The company's capabilities have improved after the establishment of its new dry dock facility and International Ship Repair Facility (ISRF). It plans to add four more workstations, which are expected to be completed by mid-2024. 

Cochin Shipyard’s total export orders stand at around Rs 2,688 crore and it is also seeing strong demand from various types of vessels plying within Europe, as an estimated 2,500 vessels are scheduled to be replaced with green vessels.

Madhu S Nair, Chairman and MD of the firm, said, “We would exceed our all-time best gross revenue turnover targets. And for FY25, we will try to raise it by 12-15% on top of that. EBITDA margin would be around 18-19% for FY25.”  

ICICI Direct recommends a ‘Buy’ on Cochin Shipyard with a target price of Rs 1,055. They say “We expect CSL to witness significant YoY growth in revenues & profitability over FY24-26E, led by execution pick-up in both segments and increasing share of the margin accretive ship-repair segment. We estimate revenue and PAT to grow at around 23% & 36% CAGR respectively over FY23-26E as against the de-growth seen over FY20-23.”

5. Avenue Supermarts (DMart):

This billionaire-owned discount hypermarket chain touched a fresh 52 week high today, and rose 6.9% over the past week. On Thursday, CLSA initiated a buy call on the Damani-owned company with a target price of Rs. 5,107, implying an upside of 18.8%. This is the highest target in the consensus – the average target from analysts on DMart according to Trendlyne Forecaster is Rs. 4,108. 

DMart opened 17 new stores in 9MFY24 and 90 stores in the last two years to hit a total of 341, and its management has highlighted a focus on rural areas and new states in its ongoing expansion. CLSA expects these new store additions to ramp up considerably and triple in the next ten years (by FY34), as the chain builds up its network to a store to population density ratio like Walmart in the US. 

With only 5% of DMart’s addressable Indian market in the organized sector, the half a billion dollar opportunity here is a large pie. Analysts argue that D-Mart has a better than even chance of winning a significant market share here, since it offers the lowest prices on its range of food, FMCG, general merchandise and apparel products.

The company also recently appointed former SEBI chief Chandrashekhar Bhave as chairman of the company's board. Bhave, who has previously been on the boards of Tejas Networks and M&M Financial Services, will take over on April 1.

For investors, DMart may be in a sweet spot currently in its valuation – it is in the PE   Buy/Neutral Zone. The stock had seen consecutive monthly declines between July and October 2023, pulling it into a more affordable PE range compared to its historical trend. However even at this lower level, its PE stands at 107, which is above the industry average.

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
22 Mar 2024
Market closes higher, KEC International wins orders worth Rs 1,004 crore
By Trendlyne Analysis

Nifty 50 closed at 22,096.75 (84.8, 0.4%), BSE Sensex closed at 72,831.94 (190.8, 0.3%) while the broader Nifty 500 closed at 19,994.60 (97.2, 0.5%). Of the 2,111 stocks traded today, 1,361 were on the uptick, and 700 were down.

Indian indices recovered from their day lows and closed in the green. The Indian volatility index, Nifty VIX, fell 2.3% and closed at 12.2 points. KEC International closed higher after winning orders worth Rs 1,004 crore for its transmission & distribution, civil, railways and cables businesses from India and the Americas.

Nifty Smallcap 100 and Nifty Midcap 100 closed in the green, following the benchmark index. Nifty Pharma and Nifty Realty closed higher than their Thursday close. However, Nifty IT closed in the red after Accenture revised its CY24 revenue growth to 1-3% from 3-5%. According to Trendlyne’s sector dashboard, healthcare equipment & supplies emerged as the top-performing sector of the week, with a rise of 6.3%.

Major Asian indices closed flat or lower, except for India’s BSE Sensex closing in the green. European indices traded mixed on a volatile day of trade. US index futures traded higher, indicating a positive start to the trading session. Brent crude oil futures traded flat after closing in the red for two straight trading sessions.

  • Money flow index (MFI) indicates that stocks like Sanofi India, VIP Industries, Gujarat Alkalies & Chemicals and Hindustan Unilever are in the oversold zone.

  • Delta Corp, Teamlease Services and NMDC's mutual fund holdings decline 435 bps MoM, 387 bps MoM and 230 bps MoM, respectively, in February.

  • Century Textiles is falling as its board approves the proposal to discontinue most textile operations at Birla Century, Bharuch. The company will continue only some manufacturing and allied operations to supply yarn to its joint venture with Grasim Industries, Birla Advanced Knits.

  • Sectors like realty, hardware technology & equipment, healthcare equipment & supplies and general industrials rise more than 4% in the past week.

  • Nuvama estimates that ITC's weight in the S&P BSE Sensex will increase, potentially attracting $50 million in inflows. However, BAT's stake sale is expected to have no impact on global indices since the 24% maximum foreign ownership limit is already used by MSCI and FTSE index providers.

  • Dhanlaxmi Bank rises as its board approves increasing the amount of the proposed rights issue to Rs 300 crore.

  • Hindustan Zinc receives GST demand for Rs 91.9 crore, including penalty and interest from Udaipur GST authority.

  • Realty stocks like Swan Energy, Brigade Enterprises, Prestige Estates Projects and Sobha surge more than 4% in trade. All constituents of the broad Nifty Realty index are also trading in the green.

  • Shashank Srivastava, Senior Executive Officer at Maruti Suzuki, says that by 2030, 15% of the company's sales will be electric vehicles (EVs) and 25% hybrid cars. Despite the limited number of hybrid cars currently, they are outselling EVs, he notes. He adds that the firm's retail sales for March were lower than expected, but enquiry flow remains positive.

  • Foreign institutional investors pull out Rs 1,285.3 crore from the equity market over the past week, according to Trendlyne's FII dashboard. Index options also witness the highest outflow of Rs 66,305.2 crore from foreign investors. Meanwhile, mutual funds are net buyers in the equity market, injecting Rs 5,897.2 crore during the same period.

  • KEC International wins orders worth Rs 1,004 crore for its transmission & distribution, civil, railways and cables businesses from India and the Americas.

  • Sarda Energy & Minerals surges as its subsidiary joint venture, Natural Resources Energy, gets a licence from the Government of Maharashtra for the Surjagad 1 iron ore block.

  • Bharat Dynamics rises as its board approves a stock split, dividing each existing equity share with a face value of Rs 10 into two with a face value of Rs 5 each, subject to shareholders' approval.

  • Goldman Sachs reportedly initiates coverage on Metro Brands with a 'Buy' rating and a target price of Rs 1,450 per share. This indicates a potential upside of 28.2%. The brokerage believes that the company is better positioned than its peers and expects it to successfully leverage opportunities in sports & athleisure.

  • Mazagon Dock Shipbuilders is rising as the Mumbai Port Authority allots 14.6 acres and a building to the company on a 29-year lease for Rs 354 crore.

  • Welspun Corp wins orders worth Rs 2,039 crore from India and USA for line pipes.

  • New Delhi and London hope to sign the free-trade agreement (FTA) by July. The agreement is expected to enhance market access for Indian exporters in sectors such as textiles, machinery, auto parts, and marine products.

  • Muthoot Finance acquires an additional 4.5% stake (60 lakh shares) in its subsidiary, Belstar Microfinance, for Rs 300 crore.

  • Man Infraconstruction rises sharply as it acquires a luxury residential project in Marine Lines, Mumbai, with a revenue potential of Rs 2,100 crore.

  • IT stocks like HCL Technologies, Coforge, LTIMindtree and L&T Technology Services are falling in trade. The broader sectoral index, Nifty IT, is also trading in the red.

  • InterGlobe Aviation (IndiGo) plans to add more than one aircraft weekly, hire nearly 6,000 employees in FY25, and introduce about 10 new destinations. It aims to expand to a 600+ aircraft fleet by 2030. The management expects early double-digit growth in capacity and passengers for FY25.

  • TVS Holdings approves an interim dividend of Rs 94 per share on 2 lakh equity shares for FY24. The company fixes April 2, 2024, as the record date.

  • Tata Communications is rising as its board approves the sale of its digital services business to its subsidiary, Novamesh, for a consideration of Rs 458 crore.

  • Prestige Estates Projects acquires 62.5 acres in NCR for Rs 468 crore. The acquired land will be primarily developed for residential use, with educational and retail spaces.

  • Gensol Engineering is rising as it wins a Rs 520 crore order from the Maharashtra government to develop a 100 MW AC/135 MWp solar power project on 500 acres in the state.

Riding High:

Largecap and midcap gainers today include Indus Towers Ltd. (271.30, 8.4%), Solar Industries India Ltd. (9,322, 4.8%) and Indian Railway Finance Corporation Ltd. (140.95, 4.2%).

Downers:

Largecap and midcap losers today include LTIMindtree Ltd. (5,005, -3%), Infosys Ltd. (1,508.85, -3.0%) and Coforge Ltd. (5,540.10, -2.9%).

Movers and Shakers

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

Top high volume gainers on BSE included Star Cement Ltd. (232.30, 10.5%), Laxmi Organic Industries Ltd. (246.45, 8.2%) and Carborundum Universal Ltd. (1,248.90, 8.1%).

Top high volume losers on BSE were HCL Technologies Ltd. (1,557.85, -2.4%), 360 One Wam Ltd. (665.85, -1.1%) and The Ramco Cements Ltd. (806.45, -0.9%).

Jindal Worldwide Ltd. (332.20, 0.4%) was trading at 8.2 times of weekly average. Symphony Ltd. (864, 4.6%) and Chemplast Sanmar Ltd. (443.90, 1.6%) were trading with volumes 6.1 and 5.9 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

14 stocks took off, crossing 52-week highs, while 1 stock hit their 52-week lows.

Stocks touching their year highs included - Bajaj Auto Ltd. (8,945.25, 2.2%), Bharti Airtel Ltd. (1,236.10, 1.3%) and Indus Towers Ltd. (271.30, 8.4%).

Stock making new 52-week lows included - Hindustan Unilever Ltd. (2256.55, 0.6%).

27 stocks climbed above their 200 day SMA including Carborundum Universal Ltd. (1,248.90, 8.1%) and Trident Ltd. (38.65, 4.5%). 7 stocks slipped below their 200 SMA including Gujarat Ambuja Exports Ltd. (160.05, -3.1%) and Coforge Ltd. (5,540.10, -2.9%).