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Trendlyne Marketwatch
Trendlyne Marketwatch
29 Feb 2024
Market closes higher, Mangalore Refinery and Petrochemicals' Sanjay Varma resigns as CEO and MD
By Trendlyne Analysis

Nifty 50 closed at 21,982.80 (31.7, 0.1%), BSE Sensex closed at 72,500.30 (195.4, 0.3%) while the broader Nifty 500 closed at 20,090.05 (69.7, 0.4%). Market breadth is horizontal. Of the 2,043 stocks traded today, 1,034 were in the positive territory and 974 were negative.

Indian indices extended the gains from the afternoon session and closed in the green. The volatility index, Nifty VIX, dropped by 4.6% and closed at 15.6 points. Coal India is set to form a joint venture (JV) company with Bharat Heavy Electricals to engage in the coal to chemicals business. Coal India will hold a 51% stake in the Rs 11,700 crore JV.

Nifty Midcap 100 and Nifty Smallcap 100 closed higher following the benchmark index. Nifty PSU Bank and Nifty Metal closed higher than Wednesday’s closing level. According to Trendlyne’s sector dashboard, commercial supplies & services 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 Switzerland’s SMI index trading lower. US indices futures trade lower, indicating a negative start. The CPI inflation for the Eurozone in February increased by 2.5% YoY against 2.8% growth in January.

  • Money flow index (MFI) indicates that stocks like Zydus Lifesciences, ICICI Lombard General Insurance, PB Fintech and Havells India are in the overbought zone.

  • Mangalore Refinery and Petrochemicals is falling as Sanjay Varma resigns as CEO and MD of the company with effect from February 28. The board has appointed Mundkur Shyamprasad Kamath as Managing Director.

  • Adani Enterprises is rising as its arm Adani Airport Holdings signs a joint venture and share purchase agreement for the acquisition of a 50% stake in Semolina Kitchens.

  • Zee Entertainment Enterprises falls sharply following reports that Sony Group has pulled out of its merger with the company, as indicated by multiple filings sent to the National Company Law Tribunal (NCLT).

  • Lumax Auto Technologies rises more than 8% as reports suggest that 28.6 lakh shares (4.2% equity), amounting to Rs 128.8 crore, change hands in a large trade.

  • Mukka Proteins' Rs 224 crore IPO gets bids for 1.3X the available 5.6 crore shares on offer on the first day of bidding. The retail investor quota gets bids for 2.2X the available 2.8 crore shares on offer.

  • Platinum Industries' Rs 235.3 crore IPO gets bids for 45X the available 96.3 lakh shares on offer on the third day of bidding. The retail investor quota gets bids for 40.1X the available 48.2 lakh shares on offer.

  • Exicom Tele-Systems' Rs 446.1 crore IPO gets bids for 63X the available 1.8 crore shares on offer on the third day of bidding. The retail investor quota gets bids for 96.7X the available 31.4 lakh shares on offer.

  • According to a poll of economists, India's GDP growth is projected to expand by 6.6% during the October- December quarter. They expect a resilient economy that will grow 7% In FY24.

  • Punjab & Sind Bank is rising as its board approves a plan to raise up to Rs 2,000 crore in multiple tranches through the issuance of equity shares and bonds. Equity shares will be issued via a public issue, rights issue, qualified institutional placement (QIP) or preferential issue.

  • CG Power and Industrial Solutions receives a Rs 188.8 crore income tax demand for assessment year 2022-23 from the Income Tax Department. The company plans to appeal against the order's disallowances/additions and seek rectification for apparent mistakes.

  • JSW Infrastructure rises sharply as Motilal Oswal reportedly initiates coverage on the stock with a 'Buy' rating and a target price of Rs 300. This indicates a potential upside of 17.9%. The brokerage believes that it is the fastest-growing port infrastructure company, with a focus on increasing market share. It also expects the company's cash flow generation to remain strong despite acquisitions.

  • SoftBank sells over 1.4 crore shares, roughly a 2.2% stake, of One97 Communications (Paytm) in the open market over the past month, reducing its shareholding to 2.8% from 5%.

  • Suzlon Energy bags an order for a 30 MW wind power project from EDF Renewables. Suzlon will supply 10 wind turbine generators with a rated capacity of 3 MW each, and the electricity generated will be supplied to Gujarat Urja Vikas Nigam.

  • NBCC (India) inks a Rs 150 crore agreement for infrastructure projects and repair/renovation of IFCI properties. The company has also announced an e-auction for approx 61,000 sq ft of commercial space valued at Rs 272.7 crore.

  • Media stocks like Zee Entertainment Enterprises, Network18 Media & Investment, TV18 Broadcast, and Saregama India are falling in trade. All constituents of the broader Nifty Media index also trade in the red as Reliance forms a JV with Viacom18 and Disney.

  • Healthcare stocks like Max Healthcare Institute, Apollo Hospitals Enterprises and Fortis Healthcare decline as the Supreme Court instructs the central government to address discrepancies in healthcare charges. Reports suggest that, under the Clinical Establishment Rule, 2012, the apex court has asked the Centre to take immediate action and determine fees chargeable to patients.

  • Shriram Finance is rising as the National Stock Exchange (NSE) replaces UPL with Shriram Finance in its Nifty 50 index, effective March 28.

  • Kaveri Seed rises sharply as its buyback of 44.8 lakh shares, valued at Rs 325 crore at Rs 725 per share, starts today, with the closing set for Wednesday.

  • Coal India is set to form a joint venture (JV) company with Bharat Heavy Electricals to engage in the coal to chemicals business. Coal India will hold a 51% stake in the Rs 11,700 crore JV.

  • Jio Financial Services rises as it's set to join the Nifty Next 50 index during the NSE's semi-annual index rebalancing. REC, Power Finance Corp, Indian Railway Finance Corp, and Adani Power will also be included in the Nifty Next 50 index, while Adani Wilmar, Muthoot Finance, PI Industries, Procter & Gamble Hygiene & Healthcare will be removed.

  • GPT Healthcare’s shares debut on the bourses at a 15.6% premium to the issue price of Rs 186. The Rs 525.1 crore IPO has received bids for 8.5 times the total shares on offer.

  • Mukka Proteins raises Rs 67.2 crore from anchor investors ahead of its IPO by allotting around 2.4 crore shares at Rs 28 each. Investors include Elara India Opportunities Fund, Saint Capital Fund, Eminence Global Fund, and Neomile Growth Fund.

  • Venus Pipes & Tubes rises as it announces its foray into the fittings business and capacity expansion for its seamless and welded pipes and tubes.

  • Reliance Industries enters into a joint venture agreement with Viacom18 Media and Walt Disney, merging Viacom18 into Star India through a court-approved arrangement. Post-merger, Reliance will own 16.3%, Viacom18 will have 46.8%, and Disney will hold a 36.8% stake in the JV. Additionally, Reliance will invest Rs 11,500 crore in the venture.

  • Nifty 50 was trading at 21,931.15 (-20, -0.1%), BSE Sensex was trading at 72,220.57 (-84.3, -0.1%) while the broader Nifty 500 was trading at 19,982.25 (-38.2, -0.2%).

  • Market breadth is balanced. Of the 1,813 stocks traded today, 874 were gainers and 884 were losers.

Riding High:

Largecap and midcap gainers today include Berger Paints (India) Ltd. (606.70, 7.53%), APL Apollo Tubes Ltd. (1,547.55, 5.79%) and Bajaj Holdings & Investment Ltd. (9,149.60, 5.10%).

Downers:

Largecap and midcap losers today include Max Healthcare Institute Ltd. (793.35, -6.83%), Apollo Hospitals Enterprise Ltd. (6,101.60, -4.10%) and Oil India Ltd. (546.55, -3.63%).

Volume Shockers

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

Top high volume gainers on BSE included Berger Paints (India) Ltd. (606.70, 7.53%), Ingersoll-Rand (India) Ltd. (3,658.15, 7.42%) and Triveni Turbine Ltd. (498.20, 6.89%).

Top high volume losers on BSE were Max Healthcare Institute Ltd. (793.35, -6.83%), KSB Ltd. (3,659.60, -6.81%) and Prestige Estates Projects Ltd. (1,166.75, -5.07%).

J B Chemicals & Pharmaceuticals Ltd. (1,561.85, -2.40%) was trading at 9.5 times of weekly average. NMDC Ltd. (225.90, 1.28%) and Union Bank of India (146.30, 3.87%) were trading with volumes 9.2 and 8.9 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

15 stocks made 52 week highs, while 7 stocks were underachievers and hit their 52 week lows.

Stocks touching their year highs included - Bajaj Holdings & Investment Ltd. (9,149.60, 5.10%), Indus Towers Ltd. (252.80, 3.33%) and JK Cement Ltd. (4,514.90, 1.53%).

Stocks making new 52 weeks lows included - Atul Ltd. (6,227.00, 2.39%) and Bata India Ltd. (1,405.00, -0.10%).

6 stocks climbed above their 200 day SMA including Berger Paints (India) Ltd. (606.70, 7.53%) and APL Apollo Tubes Ltd. (1,547.55, 5.79%). 22 stocks slipped below their 200 SMA including Privi Speciality Chemicals Ltd. (1,175.40, -3.41%) and Home First Finance Company India Ltd. (868.20, -2.26%).

 
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The Baseline
29 Feb 2024
Chart of the week: Internet software, realty firms see profit and revenue surge, chemical stocks struggle
By Satyam Kumar

Following the Q3 results season, we turn to Trendlyne’s results dashboard to assess the performance of various industries, and identify top performers as well as those that struggled. We also check drivers of positive or negative industry sentiment. This edition of Chart of the Week looks at the YoY growth in revenue and net profit for Q3FY24 across industries and their large-cap stocks. 

Leading the pack in terms of revenue and profit growth for the quarter are internet software and services, realty, and consumer electronics industries.

Zomato, PB Fintech drive growth in internet software and services

The internet software and services industry registered an average net profit growth of 292.6% YoY and revenue growth of 33.2% YoY in Q3FY24. 

This surge was helped by Zomato and PB Fintech, which saw net profit rise 139.8% and 143.6% YoY, respectively. Additionally, 21 of 31 stocks in the industry posted a profit increase  during the quarter.

Zomato’s profit boost was on the back of its quick-commerce arm Blinkit, which saw a 27% QoQ revenue growth. Its food delivery segment’s revenue also increased by 10% QoQ, helped by a higher take rate of 20.1% (up 70 bps QoQ) after introducing a platform fee.

PB Fintech’s revenue rose by 42.8% YoY, driven by its insurance and credit businesses, which grew by 44.3% and 35.5% YoY, respectively.

The realty industry posted an average net profit growth of 211% YoY in Q3FY24, with a 21.4 % YoY improvement in revenue amid strong customer demand. Key contributors included Macrotech Developers, Phoenix Mills, and Brigade Enterprises respectively, with their net profit up by 24.4%, 58.4%, and 29.2% YoY. The industry’s revenue boost was largely due to Macrotech Developers and Brigade Enterprises reporting record pre-sales of Rs 3,410 crore (up 12% YoY) and Rs 1,520 crore (up 51% YoY), in Q3FY24. Phoenix’s mall consumption went up by 25% YoY to Rs 3,300 crore with rising income levels and urbanisation, while its rental income was up 33% YoY to Rs 447 crore during the quarter.

The consumer electronics industry also saw its net profit and revenue improve by 172.5% YoY and 29.7% YoY during the quarter. Dixon Technologies (India), Voltas, and Blue Star contributed to this growth with their profits up by 85.8%, 72.5%, and 71.9% YoY, respectively. This growth was supported by major policy changes and production-linked incentive (PLI) schemes by the Indian government to attract large global players into this space. Dixon Technologies in particular, saw its revenue double on a YoY basis in Q3FY24, thanks to its mobile and electronic manufacturing segment, with a growth of 251% YoY to Rs 3,214 crore. Voltas and Blue Star also reported net profit growth on festive sales and rise in demand for air conditioners.

While these three industries celebrated robust Q3FY24 results, others like commodity chemicals, fertilizers, and agrochemicals faced declines in both revenue and net profit during the same period.

Weak demand and Chinese competition dampen chemical industry’s revenue

The chemical industry faced continued price pressures in Q3FY24, while inventory rationalisation by end-user agrochemical companies is coming to an end. Weak demand and ongoing Chinese dumping resulted in subdued revenues and margins.

The agrochemicals industry was impacted the most, recording a 125.8% YoY decline in average net profit and a 21.3% YoY fall in revenue. UPL, Bayer Cropscience, and Sumitomo Chemical India saw revenue declines of 27.7%, 8% and 28.1% YoY, respectively. This downturn was due to a sharp decrease in price realisation, pressured by higher supplies from China as Covid-related restrictions eased.

Meanwhile, the commodity chemicals industry saw a 53.4% YoY plunge in average net profit and a 7.6% YoY fall in revenue during the quarter. Tata Chemicals and Navin Fluorine International reported significant profit drops of 59.6% YoY and 26.8% YoY, respectively. The decline in net profit was mainly due to industry-wide channel destocking and inventory reduction.

The fertilizers industry also saw a 67.3% YoY decline in net profit, while its average revenue decreased by 32.9% YoY during Q3FY24. Coromandel International and The Fertilisers and Chemicals Travancore faced sharp decreases of 56.2% YoY and 81.7% YoY in net profit during the quarter.

 
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The Baseline
28 Feb 2024
Is the Nifty Index overvalued post-results? | Screener: Nifty50 stocks with rising margins and profits
By Shreesh Biradar

The GDP numbers for major countries in the most recent quarter, were a big 'ouch', painting a grim picture of the global economy. The UK reported negative growth and entered a technical recession, hurting its already unpopular Prime Minister, Rishi Sunak. Germany and Japan are in the same boat.

So far, India is better placed. Although official GDP growth figures haven't been released yet for the December quarter early estimates suggest a strong growth rate of 6.5%-7%. Jefferies predicts that the Indian economy will become the third-largest by 2027.

India’s growth has been helped by muted inflation, the China +1 strategy, a stable currency, and higher government spending.

For Nifty 50 companies, revenue has grown on average by 6.2% YoY in the December quarter, slower than India's expected GDP growth. The difference suggests a slowdown in the formal sector, due to downturns in major industries like IT, agrochemicals, specialty chemicals, and packaged foods.

But if we look at profit, the Nifty 50 registered an impressive 17.3% YoY growth, thanks to lower input costs and product premiumization. Sectors like auto, metals and realty are outperforming the broader market in profit growth. Five Nifty companies — Tata Motors, HDFC Bank, Tata Steel, ICICI Bank, and JSW Steel — contributed 56% of the index's YoY profit growth.

The Nifty 50’s current PE stands at 22.8, which is below its five-year average of 25.9. The lower valuation is due to a slowdown in the overall topline, and concerns over debt-fueled consumption. 

  • Nifty 50 results review: IT and chemicals underperform, while auto and metals shine
  • Screener: Nifty 50 stocks surging over the past month with rising operating profit and operating profit margin

Let’s get into it.

Concerns rise with revenue slowdown

The Nifty 50 reported subdued revenue growth in the latest quarter, due to multiple factors - a weaker-than-expected monsoon from the El Nino effect, soft rural demand, and reduced global IT spending.

The IT sector, a heavyweight in the Nifty 50, saw only a 3.2% increase in the top line, and marked its first net profit decline of 1.4% in the past 26 quarters. 

Revenue trends: Auto, metals, realty, and banks excel amid slowdown in chemical, IT, and OMC sectors

Packaged food and agrochemical sectors were especially hit by lower rural consumption. "Urban growth has continued to outpace rural growth across many industries, and an uneven monsoon hit kharif crop output," Rohit Jawa, the CEO of HUL noted. Although a good monsoon in FY25 is expected to drive a recovery in rural spending, many companies in consumption-driven sectors still see muted demand in the first half of FY25.   

The refineries and petroleum sector suffered from lower consumption and crude prices, though the demand for petroleum products is expected to grow by 3% in FY25. Specialty chemicals faced challenges from higher Chinese imports, which has pressured domestic sales volumes and margins.

On the other hand, industries like banks, auto parts & equipment and iron & steel products have led revenue growth for the Nifty 50. Banks benefitted from higher loan growth, while the auto sector’s revenue was boosted by price increases and festive season sales. 

Margin growth helps the bottom line

The Nifty 50 saw its profit margins grow because of lower input costs, festive demand, higher price realization, increased exports, and a stronger USD.

Nifty 50 sees margin expansion in four consecutive quarters

Margins in the auto parts and equipment industry got a boost from lower commodity prices and higher price realization, with an uptick in volumes during the festive season.

Oil marketing companies have benefited from buying crude at lower prices from Russia and exporting more refined oil to European nations, improving refining margins. However, this may change as nations buying from Russia face a higher risk of sanctions.

The iron & steel industry saw better margins from domestic consumption and lower costs. However, rising Chinese imports have put pressure on margins lately. Meanwhile, the pharma sector has benefited from stable prices in the US, and better domestic sales.

Banks and IT sector to drive earnings in FY25

The banking sector has seen margin contraction this quarter due to the rising cost of funds and lower yields on advances. But with interest rates expected to drop in FY25, banks should see margins recover, supported by high loan growth. Credit growth in banks is projected at  14% for FY25, with profits expected to grow by around 22% YoY. 

India's IT sector, which had surged during the Covid years, has been impacted by spending cuts by BFSI clients, leading to lower revenue and margin contraction. As interest rates surged globally, customers have also postponed IT infrastructure spends.  

With its cash cow failing to deliver, tech CEOs are looking for other ways to grow. New verticals are all the rage - utilities, telecom, automobile, retail and manufacturing. Tech companies are also tapping into newer markets in Asia, Africa and the Middle East. Wipro for example, is bullish on digital solutions and AI in FY25, while HCL Tech is betting on non-BFSI verticals. TCS is expecting a surge in order inflows from India.

With global interest rates expected to drop post-June 2024, the IT sector may see a revival in client spending, especially in Q3FY25. 

Banks set to boost topline, IT eyes margin expansion in FY25 

Nifty 50 valuations appear reasonable

The Nifty 50 has gained 12.2% in the past month, sparking debate on whether it's valued too high compared to its global peers. Given India's status as the fastest-growing major economy and Nifty 50’s impressive 17.2% earnings growth in Q3FY24, a premium valuation seems justified.

The Nifty 50’s current PE of 22.8 is also below its 5-year and 10-year averages.

Nifty 50 PE trades below long-term averages

The lower valuation compared to historical averages is on account of a slowdown in its topline and an expected margin moderation in FY25. The index's long-term averages were also marginally skewed by the high valuations in the Covid period.

However, the Nifty 50’s one-year forward PE of 19.4 suggests that the valuation is within a reasonable range, and FY25 will give it more room to grow.

Screener: Nifty 50 stocks surging over the past month with rising operating profit and operating profit margin

BPCL leads in month change, while Adani Ent leads in operating profit margin growth

Continuing our analysis of the Nifty 50's performance, we look into which stocks in the index have the highest YoY growth in operating profit and operating profit margin in the latest quarter. 

This screener focuses on Nifty 50stocks that have surged over the past month, and saw a rise in operating profit and operating profit margin.

Leading the pack is the automobile & auto components sector, with five out of 11 stocks coming from this sector. Major stocks that appear in the screener are Bharat Petroleum Corp, Mahindra & Mahindra, Power Grid Corp of India, Tata Motors, Maruti Suzuki India, Adani Ports & SEZ, Sun Pharmaceutical Industries and Adani Enterprises.

Mahindra & Mahindra has risen by 19.3% over the past month, owing to its operating profit growing by 18.5% YoY to Rs 6,224 crore in Q3FY24. Its operating profit margin also expanded by 48 bps YoY to 17.6%, helped by increased sales of premium vehicles (XUV 700, Thar & Scorpio-N) and improved price realization. 

Power Grid Corp of India’s share price has surged by 19.1% in the last 30 days, while its operating profit grew by 3.2% YoY in Q3FY24. This utilities company’s operating profit margin increased by 57 bps YoY to 88.4% on the back of reduced finance costs and lower provisions for depreciation and interest payments. 

You can find more screenershere.

 
Trendlyne Marketwatch
Trendlyne Marketwatch
28 Feb 2024
Market closes lower, Sharekhan reiterates its 'Buy' rating on Triveni Turbine
By Trendlyne Analysis

Nifty 50 closed at 21,951.1500 (-247.2, -1.1%), BSE Sensex closed at 72,304.88 (-790.3, -1.1%) while the broader Nifty 500 closed at 20020.40 (-272.5, -1.3%). Of the 2,056 stocks traded today, 294 were in the positive territory and 1,747 were negative.

Indian indices extended their losses from the afternoon session and closed in the red. The volatility index, Nifty VIX, rose 3.8% and closed at 16.3 points. Dreamfolks Services rose sharply and closed 5.1% higher after Motilal Oswal reportedly initiated coverage on the company with a 'Buy' rating and a target price of Rs 650. This indicates a potential upside of 29.5%.

Nifty Smallcap 100 and Nifty Midcap 100 closed in the red, taking cues from the benchmark index. Nifty PSU Bank and Nifty Energy closed sharply lower than their Tuesday close. According to Trendlyne’s sector dashboard, the Telecommunications Equipment sector fell the most as it closed 4.6% lower in a weak market.

Major Asian indices closed flat or lower, except for South Korea’s KOSPI index closing in the green. However, European indices traded mixed on a volatile day of trade. US index futures traded flat, indicating a cautious start to the trading session. Brent crude oil futures traded lower after settling in the red on Tuesday.

  • Relative strength index (RSI) indicates that stocks like Zydus Lifesciences, Tata Investment Corp, Data Patterns (India) and ICICI Lombard General Insurance are in the overbought zone.

  • Bharat Electronics rises to a new 52-week high of Rs 209 per share. The company ranks high on Trendlyne’s checklist, scoring 72.7%. It also features in a screener of companies with no debt.

  • Bajaj Healthcare surges over 14% following a definitive contract development and manufacturing organization (CDMO) agreement with clients in the UK and Europe to supply 15 active pharmaceutical ingredients (APIs).

  • Sharekhan reiterates its 'Buy' rating on Triveni Turbine with an upgraded target price of Rs 550 per share. This indicates a potential upside of 19.2%. The brokerage believes that the heavy electricals manufacturer will be on a high growth trajectory, led by strong order inflows and a promising inquiry pipeline. It expects net profit CAGR of 37.6% over FY23-26.

  • Spicejet and AerCap mutually settle their $29.9 million (Rs 250 crore) dispute through amicable negotiations, avoiding litigation. SpiceJet will save Rs 235 crore through this settlement.

  • Bharat Highways InvIT's Rs 2,500 crore IPO gets bids for 0.1X the available 10.3 crore shares on offer on the first day of bidding.

  • Platinum Industries' Rs 235.3 crore IPO gets bids for 16.5X the available 96.3 lakh shares on offer on the second day of bidding. The retail investor quota gets bids for 19.7X the available 48.2 lakh shares on offer.

  • Exicom Tele-Systems' Rs 446.1 crore IPO gets bids for 19.2X the available 1.8 crore shares on offer on the second day of bidding. The retail investor quota gets bids for 48.1X the available 31.4 lakh shares on offer.

  • New US sanctions on Russia could disrupt Russian oil deliveries to India, complicating negotiations for annual supply contracts for Indian state refiners. Concerns are growing that these sanctions may hinder access to vessels for Russian oil, potentially driving up freight costs.

  • Allcargo Logistics is falling as its less than container load (LCL) volume declines by 3% YoY in January 2024 due to delayed shipments to Latin America, Europe and America because of Red Sea issues. However, its full container load (FCL) shipment volume increases by 10% YoY during the month.

  • Utility stocks like KPI Green Energy, Jaiprakash Power Ventures, Reliance Power and Orient Green Power plunge more than 4% in trade. All constituents of the broader S&P BSE Utility index are also trading in the red.

  • Ahluwalia Contracts (India) receives Rs 218 crore in settlement from its dispute against Emaar MGF Construction for certain grievances that had risen during the execution of the Common Wealth Games Village Project.

  • Cochin Shipyard rises over 2% as PM Narendra Modi is set to inaugurate its first indigenously developed and built hydrogen fuel cell catamaran ferry vessel today. This pilot project aims to demonstrate the technology in the maritime sector. The vessel was constructed in Thoothukudi, Tamil Nadu.

  • Anupam Rasayan India sets up a wholly owned subsidiary, Anupam USA, in Delaware, US, to conduct business activities aligned with its main operations.

  • Media stocks like Network18 Media & Investments, TV18 Broadcast, Zee Entertainment Enterprises and Hathway Cable & Datacom are falling in trade. The broader sectoral index, Nifty Media, is also trading in the red.

  • Tanla Platforms is rising as it extends its exclusive partnership with Truecaller for business messaging.

  • Reports suggest that 19.7 lakh shares (01% equity) of FSN E-Commerce Ventures (Nykaa), amounting to 30.5 crore, change hands in a large trade.

  • Dreamfolks Services rises sharply as Motilal Oswal reportedly initiates coverage on the company with a 'Buy' rating and a target price of Rs 650. This indicates a potential upside of 29.5%. The brokerage believes that the company's revenue growth will be driven by competitive fares, rising leisure travel, new airports and government push.

  • GE T&D India rises as it wins a Rs 370 crore order from Power Grid Corp of India to supply shunt reactors for various transmission system projects in India.

  • Salasar Techno Engineering signs an agreement worth Rs 200 crore with ZETWERK Businesses to supply 25,000 MT of solar structures. The order is expected to be completed in 12 months.

  • Vimal Kejriwal, Sr. Vice President of KEC International, says that the company may achieve Rs 23,000 crore order inflows in FY25, with a 15% growth rate. Its FY24 margin is expected to be 6.5%, and the company plans to reduce its debt by Rs 500 crore in Q4. He adds that freight costs and shipping times have increased due to the Red Sea crisis.

  • Juniper Hotels’ shares debut on the bourses at a 1.4% premium to the issue price of Rs 360. The Rs 1,800 crore IPO has received bids for 2.1 times the total shares on offer.

  • Columbia Petro Chem buys a 0.5% stake in BLS International Services for approx Rs 78.4 crore in a bulk deal on Tuesday.

  • SJVN's subsidiary, SJVN Green Energy, bags a 100 MW solar power project at a Rs 2.6 per unit tariff through an auction by Gujarat Urja Vikas Nigam, including a 25-year power purchase agreement. The projected capex is Rs 642 crore.

  • Vodafone Idea's board approves raising Rs 20,000 crore via equity shares and equity-linked instruments, with promoters participating in the fundraising. The company is also in talks with lenders for debt funding of Rs 45,000 crore. The fundraising will support the expansion of 4G coverage, 5G network rollout, and capacity expansion.

Riding High:

Largecap and midcap gainers today include Havells India Ltd. (1,534.35, 4.44%), Max Financial Services Ltd. (964.35, 3.09%) and Vedant Fashions Ltd. (1,020.70, 3.03%).

Downers:

Largecap and midcap losers today include Vodafone Idea Ltd. (13.65, -13.88%), Zee Entertainment Enterprises Ltd. (162.00, -6.39%) and Godrej Properties Ltd. (2,353.55, -5.60%).

Volume Rockets

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

Top high volume gainers on BSE included Jindal Worldwide Ltd. (414.00, 13.81%), Rainbow Childrens Medicare Ltd. (1,429.20, 11.11%) and Aegis Logistics Ltd. (443.50, 6.39%).

Top high volume losers on BSE were Varun Beverages Ltd. (1397.85, -4.71%), IIFL Finance Ltd. (581.25, -4.38%) and La Opala RG Ltd. (337.15, -3.15%).

Triveni Turbine Ltd. (466.10, 1.50%) was trading at 18.8 times of weekly average. V-Guard Industries Ltd. (330.05, 2.40%) and Mazagon Dock Shipbuilders Ltd. (2113.90, 1.02%) were trading with volumes 12.9 and 7.7 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

28 stocks took off, crossing 52-week highs, while 6 stocks tanked below their 52-week lows.

Stocks touching their year highs included - Bharat Electronics Ltd. (205.65, 0.15%), Cipla Ltd. (1,477.00, -0.70%) and DLF Ltd. (899.00, -1.90%).

Stocks making new 52 weeks lows included - Atul Ltd. (6081.70, -2.21%) and Page Industries Ltd. (34,451.35, -3.43%).

9 stocks climbed above their 200 day SMA including Tanla Platforms Ltd. (1,007.10, 0.93%) and JK Paper Ltd. (368.20, 0.49%). 16 stocks slipped below their 200 SMA including IIFL Finance Ltd. (581.25, -4.38%) and India Cements Ltd. (224.55, -4.18%).

 
Trendlyne Marketwatch
Trendlyne Marketwatch
27 Feb 2024
Market closes higher, DCM Shriram's board approves its entry into the advanced materials business
By Trendlyne Analysis

Nifty 50 closed at 22,198.35 (76.3, 0.3%), BSE Sensex closed at 73,095.22 (305.1, 0.4%) while the broader Nifty 500 closed at 20,292.85 (37.1, 0.2%). Market breadth is in the red. Of the 2,057 stocks traded today, 705 were gainers and 1,325 were losers.

Indian indices maintained the gains from the afternoon session and closed in the green. The volatility index, Nifty VIX, rose by 0.8% and closed at 15.7 points. JSW Energy's arm, JSW Neo Energy, wins an order from SJVN to set up an ISTS-connected solar capacity of 700 MW.

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

Most European indices trade in the green except for Switzerland’s SMI index trading lower. US indices futures trade flat, indicating a cautious start. Zoom Video Communications shares jumped 13% pre-market after it reported earnings per share of $1.22 for the quarter ending January 2024, beating the estimates by 6%.

  • Shriram Finance sees a short buildup in its February 29 future series as its open interest rises 31.5% with a put-call ratio of 0.4.

  • ICICI Direct upgrades Greenply Industries to 'Buy' from 'Hold', with a higher target price of Rs 320. This indicates a potential upside of 16.6%. The brokerage predicts that the completion of a large number of residential real estate projects from FY25 onwards will boost the growth of the building materials segment. It expects the company's revenue to grow at a CAGR of 15.6% over FY23-26.

  • Delhivery is rising as wellness brand Plix extends its partnership with the company for cross-border freight shipping services.

  • The Board of Control for Cricket in India selects Angel One as an Associate Partner for the Indian Premier League for a period of five years ending 2028.

  • Jefferies downgrades its rating on Dixon Technologies (India) and Whirlpool of India to 'Underperform', with a target price of Rs 5,920 and Rs 1,125, respectively. The brokerage expects demand to weaken, affecting the B2C mix of both companies.

  • DCM Shriram is rising as its board of directors approves its entry into the advanced materials business. The company plans to invest a capex of Rs 1,000 crore in the epoxy resins and downstream products businesses.

  • KFIN Technologies, SBI Life Insurance, and Macrotech Developersoutperform the Nifty 50 index over the past month after their Q3FY24 results.

  • Platinum Industries' Rs 235.3 crore IPO gets bids for 4.3X the available 96.3 lakh shares on offer on the first day of bidding. The retail investor quota gets bids for 6X the available 48.2 lakh shares on offer.

  • The National Company Law Tribunal (NCLT) approves IndusInd International Holdings' Rs 9,650 crore resolution plan for Reliance Capital. In November 2021, the Reserve Bank of India had superseded Reliance Capital's board due to governance issues and payment defaults.

  • Exicom Tele-Systems' Rs 446.1 crore IPO gets bids for 4.5X the available 1.8 crore shares on offer on the first day of bidding. The retail investor quota gets bids for 13.7X the available 31.4 lakh shares on offer.

  • Andhra Cements falls sharply as its promoter, Sagar Cements, sells a 5% stake (or 46.1 lakh shares) in the company in the open market. This sale takes the promoter's shareholding to 90% from 95%.

  • Mahanagar Gas signs an agreement to acquire a 31% stake in 3ev Industries for Rs 96 crore.

  • Cello World is rising as Motilal Oswal initiates coverage with a ‘Buy’ rating and a target price of Rs 1,100. The brokerage notes the company’s strong brand presence, wide distribution network, and robust manufacturing capability. It expects the company to grow faster than its industry. MOSL also projects Cello to post a revenue CAGR of 18% over FY23-26.

  • Happiest Minds Technologies rises sharply as it plans to set up a new vertical organisation structure comprising six industries – Industrial, manufacturing and energy & utilities, healthcare & life sciences, retail, CPG and logistics, banking, financial services & insurance (BFSI), hi-tech and media & entertainment, and edtech.

  • Reports suggest that a 27% equity stake of CMS Info Systems, amounting to Rs 1,594 crore, has changed hands in a block deal. Promoter Sion Investment Holdings is the likely seller.

  • TCS is rising as UBS Securities reportedly upgrades it to 'Buy' from 'Neutral', with an increased target price of Rs 4,700. This indicates a potential upside of 15.4%. The brokerage believes that the company's large deal momentum and recovery in the BFSI segment will drive revenue growth.

  • Indian Renewable Energy Development Agency (IREDA) rises more than 4% as reports suggest that 5 crore shares (1.9% equity), amounting to Rs 767 crore, change hands in a block deal.

  • JSW Energy's arm, JSW Neo Energy, wins an order from SJVN to set up an ISTS-connected solar capacity of 700 MW.

  • Hind Rectifiers surges to its 10% upper circuit following an order win of over Rs 200 crore from Indian Railways.

  • Exicom Tele-Systems raises Rs 178 crore from anchor investors ahead of its IPO by allotting around 1.3 crore shares at Rs 142 each. Investors include Maybank Asiapac Ex-Japan Equity I Fund, Nepean Long Term Opportunities Fund, JM Financial Mutual Fund, SBI General Insurance, and Abakkus Diversified Alpha Fund. Meanwhile, Platinum Industries raises Rs 70.6 crore from anchor investors.

  • Devyani International is falling as 67.2 lakh shares (0.6% equity), amounting to approximately Rs 106.2 crore, change hands in three large deals.

  • Multi Commodity Exchange of India signs a memorandum of understanding (MoU) with the Jakarta Futures Exchange (JFX). This collaboration aims at knowledge sharing, research, education, and other market development initiatives.

  • Minerva Ventures Fund buys a 0.5% stake in Easy Trip Planners for approx Rs 43.9 crore in a bulk deal on Monday.

  • One97 Communications' (Paytm) Chief Executive Officer Vijay Shekhar Sharma resigns as Chairman and board member of Paytm Payments Bank on Monday.

  • Power Mech Projects bags an order worth Rs 396.3 crore to construct an electrified railway line in Chhattisgarh on an engineering, procurement and construction (EPC) basis.

  • Nifty 50 was trading at 22091.2000 (-30.9, -0.1%) , BSE Sensex was trading at 72723.5300 (-66.6, -0.1%) while the broader Nifty 500 was trading at 20270.0500 (14.3, 0.1%)

  • Market breadth is overwhelmingly positive. Of the 1811 stocks traded today, 1221 were on the uptick, and 527 were down.

Riding High:

Largecap and midcap gainers today include ICICI Lombard General Insurance Company Ltd. (1,726.75, 4.62%), Sona BLW Precision Forgings Ltd. (688.10, 3.61%) and PB Fintech Ltd. (1,135.45, 3.33%).

Downers:

Largecap and midcap losers today include Vodafone Idea Ltd. (15.85, -5.93%), Adani Energy Solutions Ltd. (1,122.70, -4.54%) and Shriram Finance Ltd. (2,372.40, -4.54%).

Volume Shockers

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

Top high volume gainers on BSE included Intellect Design Arena Ltd. (1,058.70, 7.68%), Jamna Auto Industries Ltd. (124.15, 7.44%) and KNR Constructions Ltd. (280.90, 5.15%).

Top high volume losers on BSE were Shriram Finance Ltd. (2,372.40, -4.54%), Akzo Nobel India Ltd. (2,637.30, -1.69%) and Westlife Foodworld Ltd. (790.05, -1.44%).

DCM Shriram Ltd. (1,004.05, 2.79%) was trading at 8.6 times of weekly average. ICICI Lombard General Insurance Company Ltd. (1,726.75, 4.62%) and KEC International Ltd. (697.60, 3.96%) were trading with volumes 7.8 and 7.7 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

43 stocks overperformed with 52 week highs, while 2 stocks were underachievers and hit their 52 week lows.

Stocks touching their year highs included - Astral Ltd. (2,095.25, 0.52%), Bajaj Holdings & Investment Ltd. (8,703.00, -1.13%) and Bharat Electronics Ltd. (205.35, 0.54%).

Stocks making new 52 weeks lows included - Whirlpool of India Ltd. (1,263.20, 0.19%) and TCI Express Ltd. (1,180.20, -1.04%).

5 stocks climbed above their 200 day SMA including Crompton Greaves Consumer Electricals Ltd. (290.80, 0.95%) and Tanla Platforms Ltd. (997.85, 0.94%). 10 stocks slipped below their 200 SMA including JK Paper Ltd. (366.40, -2.25%) and Coromandel International Ltd. (1,039.50, -2.17%).

 
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The Baseline
26 Feb 2024
5 stocks to buy from analysts this week
By Abhiraj Panchal

1. CIE Automotive India:

Axis Direct maintains its ‘Buy’ rating on this auto part and equipment manufacturer with a target price of Rs 565. This indicates an upside of 22.2%. Analysts Shridhar Kallani and Aditya Welekar say, “The company’s Indian operations are likely to outperform underlying industry growth in the medium term.”

In Q4CY23, the company reported a net profit of Rs 168.9 crore, as against a loss of 657.8 crore in Q4CY22. Meanwhile, its revenue showed only marginal YoY changes. The analysts believe that the subdued revenue growth was due to decreased sales of medium and heavy commercial vehicles and delayed ramp-up of new electric vehicle (EV) export orders.

However, Kallani and Welekar expect growth in the Indian operations to surpass estimates, thanks to increased orders from OEMs (original equipment manufacturers), demand-backed capital expenditure, and overall industry growth. 

The analysts highlight the company’s potential for long-term growth in India and Mexico, led by increased capacities, opportunities for operational efficiency improvements, and a healthy balance sheet. They estimate a revenue CAGR of 9.6% from the Indian operations and 5.7% from European business over CY24-26.

2. Tata Consumer Products:

KRChoksey reiterates its ‘Buy’ rating on this tea and coffee company with a target price of Rs 1,352, indicating an upside of 14.9%. Analyst Unnati Jadhav says, “Tata Consumer’s focus on driving growth through organic and inorganic expansion will lead to double-digit topline growth in the medium-term.” In Q3FY24, the company’s revenue grew 9.7% YoY to Rs 3,863.5 crore, while its net profit decreased 20.7% YoY to Rs 278.9 crore.

Jadhav believes that the decline in net profit was due to exceptional items worth Rs 91.5 crore related to acquisitions and restructuring expenses.

The analyst expects the acquisition of Capital Foods and Organic India to boost profitability, led by superior margins from the acquired business. She foresees revenue growth, backed by distribution expansion, innovation, premiumization and inorganic play. She remains optimistic as the management has indicated current margins of 15% as the new base and expects further expansion. Jadhav forecasts revenue, EBITDA and profit to grow by 13.9%, 21.1% and 24.7% CAGR, respectively, over FY24-26.

3. Va Tech Wabag:

Sharekhan maintains its ‘Buy’ call on this utilities company with a target price of Rs 850, indicating an upside of 6.2%. Analysts at Sharekhan say, “VA Tech Wabag has been exhibiting good operating performance, driven by a better order mix and improved execution efficiencies.” During Q3FY24, the company’s profit improved 33.4% YoY to Rs 62.9 crore. 

Despite divesting two European entities, the company managed to increase its sales by 8.1% YoY to Rs 704 crore, thanks to revenue from new and large projects. 

The analysts remain optimistic about Va Tech Wabag on the back of its robust order book (approx Rs 11,900 crore) and a promising order pipeline. They say, “A well-funded and strong order book with healthy revenue visibility provides comfort in execution and collections going ahead.” They also believe that the company is focused on margin improvement and cash flow generation, which positions it for growth in the medium to long term.

4. Sudarshan Chemical Industries:

ICICI Direct recommends a ‘Buy’ call on this specialty chemicals company with a target price of Rs 705, indicating an upside of 17.1%. In Q3FY24, the company’s profit increased by almost 25x YoY but fell 18.3% QoQ to Rs 14.6 crore, while revenue grew by 7.8% YoY but fell 6% QoQ to Rs 570 crore. Analyst Siddhant Khandekar believes that this YoY growth was led by a 11% increase in domestic pigment sales, which accounts for 49% of total revenues. 

Khandekar is positive about the company due to its “sustained focus on specialty pigments (2/3 of the portfolio), for which it has incurred significant capex”. Sudarshan Chemical has announced the launch of four new pigments in the domestic market and two in export markets. He expects an uptick in margin on the back of improving operating leverage. He also says that the company has visible growth in international markets, especially the US, and opportunities brewing from global consolidations and exits of larger players. 

5. Huhtamaki India:

SBI Securities recommends a ‘Buy’ call on this small-cap containers and packaging company with a target price of Rs 393. This indicates an upside of 11.4%. Analysts from SBI Securities say, “Huhtamaki has an established market position in the premium flexible packaging market, supported by its diversified product range and a strong, diverse customer profile.” They believe that the company has a strong competitive advantage due to its client base, including marquee clients like Colgate Palmolive, GlaxoSmithKline, Pepsico, and Coca-Cola.

The analysts are also optimistic about the company’s move towards sustainable packaging solutions, which is in line with client goals for all packaging to be recyclable by 2030. The analysts like Huhtamaki for its improving financial position, driven by strong operating cash flows. 

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

(You can find all analyst picks here)

 
Trendlyne Marketwatch
Trendlyne Marketwatch
26 Feb 2024
Market closes lower, GPT Healthcare's Rs 525.1 crore IPO gets bids for 2.7X the available 2 crore shares on offer
By Trendlyne Analysis

Nifty 50closed at 22,122.05 (-90.7, -0.4%), BSE Sensex closed at 72,790.13 (-352.7, -0.5%) while the broader Nifty 500closed at 20,255.8000 (-57.7, -0.3%). Market breadth is in the red. Of the 2,089 stocks traded today, 801 were on the uptick, and 1,256 were down.

Indian indices extended their losses from the open and closed in the red. The Indian volatility index, Nifty VIX, rose 4.2% and closed at 15.6 points. Larsen & Toubro closed in the green after its railways business won an order worth Rs 1,000-2,500 crore through its long-term Japanese partner, Sojitz Corp, for the construction of phase 2A of the Jakarta Mass Rapid Transit Project.

Nifty Smallcap 100 and Nifty Midcap 100 closed in the red, taking cues from the benchmark index. Nifty IT and Nifty Metal closed lower than their Friday close.  According to Trendlyne’s sector dashboard, Forest Materials emerged as the top-performing sector of the day, with a rise of 2.6%. 

Major Asian indices closed in the red, except for Japan’s Nikkei 225 and Taiwan’s SE indices closing in the green. European indices traded flat or lower amid weak global cues. US index futures traded flat, indicating a cautious start to the trading session. Brent crude oil futures traded in the red after closing 2.1% lower on Friday.

  • Money flow index (MFI) indicates that stocks like Thermax, Indian Hotels, Archean Chemical Industries and Varun Beverages are in the overbought zone.

  • Exicom Tele-Systems, a power management solutions provider, will open for IPO subscription tomorrow. The price band for the issue is Rs 135-142 per share. The issue size is Rs 446.1 crore, with a fresh issue of Rs 329 crore and an offer for sale of Rs 95.1 crore. Platinum Industries, a stabilizers manufacturer will also open for subscription tomorrow.

  • Geojit BNP Paribas upgrades Avanti Feeds to 'Accumulate' from 'Hold', raising the target price to Rs 569, an 11.3% potential upside. The brokerage cites an improved shrimp production outlook and expects a correction in excess supply in export markets, helping profitability growth. It forecasts a 23.5% CAGR in net profit over FY23-26.

  • Avantika Saraogi, Executive Director of Balrampur Chini Mills, says that the revenue potential for the company's new 75,000-tonne polylactic acid factory will be Rs 1,500-2,000 crore. She adds that the company will be investing an estimated Rs 2,000 crore over the next 2.5 years.

  • Alkem Laboratories clarifies that the allegations of tax evasion are factually incorrect. The company states that it had cooperated with the IT department during the survey proceedings in September 2023.

  • Transformers & Rectifiers (India)rises sharply as it receives an order worth Rs 232 crore from Power Grid Corp of India. The order is for the design, engineering and supply of five autotransformers.

  • GPT Healthcare's Rs 525.1 crore IPO gets bids for 2.7X the available 2 crore shares on offer on the third day of bidding. The retail investor quota gets bids for 1.9X the available 98.8 lakh shares on offer.

  • Alkem Laboratories plunges as the Income Tax Department reportedly finds substantial tax evasion by the company. The department says that the company has allegedly made excessive deductions, valuing more than Rs 1,000 crore, for its manufacturing units in Sikkim.

  • Dixon Technologies (India)hits an all-time high of Rs 7,048 as its arm Padget Electronics reportedly inks a contract with Compal Smart Device India to manufacture mobile phones. It has also launched a new factory in Dehradun to manufacture washing machines.

  • Max Healthcare Institute'sboard of directors approves the acquisition of a 21,946 square meter land parcel in Lucknow for Rs 167 crore through an e-auction. The board has also approved the construction of a 500-bed hospital with a built-up area of 8 lakh square feet.

  • SJVNis rising as it signs a Power Usage Agreement (PUA) with Jammu & Kashmir Power Corp for the supply of 300 MW solar power.

  • Asian Paints is falling as CLSA downgrades its rating to ‘Sell’ from ‘Underperform’ and lowers the target price to Rs 2,425. The brokerage notes that the paints industry will see a significant increase in competition with the launch of Grasim Industries’ Birla Opus. It believes that the company’s growth and margins may be affected due to the competitive pressure.

  • One97 Communications rises to its 5% upper circuit following the Reserve Bank of India's (RBI) instruction to the National Payments Corporation of India (NPCI) to inspect the company's request to become a third-party application provider (TPAP) for UPI operations.

  • Larsen & Toubro's railways business group wins an order worth Rs 1,000-2,500 crore through its long-term Japanese partner, Sojitz Corp, for the construction of phase 2A of the Jakarta Mass Rapid Transit Project.

  • Piramal Pharma receives two observations after a US FDA inspection for a product expected to be manufactured at its Lexington (USA) facility.

  • According to Nomura, India Inc delivers strong Q3 earnings with BSE 200 companies recording 30% earnings growth YoY, surpassing estimates. The brokerage notes earnings upgrades in the automobile, transportation, and power sectors. The brokerage recommends State Bank of India, ICICI Bank, Mahindra & Mahindra, Reliance Industries, and Larsen & Toubro as its top stock picks.

  • IT stocks like Persistent Systems, Mphasis, LTIMindtree and Tech Mahindra are falling in trade. The broader sectoral index, Nifty IT, is also trading in the red.

  • Skipper rises sharply as it bags an order worth Rs 737 crore from Power Grid Corp of India to design, supply and construct a 765 kV transmission line.

  • Infibeam Avenues rises as it acquires a 20% stake in XDuce for $10 million. XDuce is an enterprise application and AI development company based in the United States.

  • Rajendra V Gogri, CMD of Aarti Industries, highlights that demand for agrochemicals remains under pressure but is expected to normalise in the coming quarters. He anticipates better performance in Q4FY24 compared to Q3, and EBITDA ranging between Rs 950-1,000 crore in FY24.

  • Shree Cementsis falling as it receives a demand order for Rs 261.9 crore from the Income Tax Department concerning income tax returns in CY22.

  • Ujwal Pagariya sells a 0.7% stake in Olectra Greentechfor approx Rs 115.3 crore in a bulk deal on Friday.

  • Reliance Industriesreportedly signs an agreement with Walt Disney to merge their Indian media businesses. According to the report, Reliance Industries will have the majority stake (61% stake) in the merged entity.

  • Gensol Engineeringsigns two engineering, procurement and construction (EPC) contracts worth Rs 337.7 crore. The contacts include a 250 MWac solar power project in Rajasthan and a 50 MWac solar power plant in Maharashtra.

  • Nifty 50was trading at 22,165.65 (-47.1, -0.2%), BSE Sensexwas trading at 73,044.81 (-98.0, -0.1%) while the broader Nifty 500was trading at 20,301.75 (-11.8, -0.1%).

  • Market breadth is highly positive. Of the 1,891 stocks traded today, 1,250 were on the uptrend, and 576 went down.

Riding High:

Largecap and midcap gainers today include Adani Energy Solutions Ltd. (1,176.15, 8.72%), PB Fintech Ltd. (1,098.85, 7.21%) and One97 Communications Ltd. (428.10, 4.99%).

Downers:

Largecap and midcap losers today include Alkem Laboratories Ltd. (5,061.85, -6.63%), General Insurance Corporation of India (401.90, -4.57%) and Vodafone Idea Ltd. (16.85, -3.99%).

Volume Shockers

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

Top high volume gainers on BSE included Adani Energy Solutions Ltd. (1,176.15, 8.72%), 360 One Wam Ltd. (769.60, 6.64%) and Infibeam Avenues Ltd. (36.75, 6.52%).

Top high volume losers on BSE were Alkem Laboratories Ltd. (5,061.85, -6.63%), Bandhan Bank Ltd. (202.60, -2.71%) and Persistent Systems Ltd. (8,425.40, -2.62%).

Mahindra Holidays & Resorts India Ltd. (431.90, 5.51%) was trading at 9.0 times of weekly average. Capri Global Capital Ltd. (999.10, 3.74%) and Abbott India Ltd. (28,480.00, -0.79%) were trading with volumes 5.3 and 4.9 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

38 stocks overperformed with 52 week highs, while 2 stocks tanked below their 52 week lows.

Stocks touching their year highs included - Adani Ports & Special Economic Zone Ltd. (1,338.15, 1.32%), Ambuja Cements Ltd. (608.60, 0.94%) and Astral Ltd. (2,084.45, 0.41%).

Stocks making new 52 weeks lows included - TCI Express Ltd. (1,192.55, -0.37%) and RHI Magnesita India Ltd. (574.75, -3.30%).

7 stocks climbed above their 200 day SMA including KPR Mill Ltd. (779.35, 4.45%) and Adani Wilmar Ltd. (398.70, 2.24%). 6 stocks slipped below their 200 SMA including Shree Renuka Sugars Ltd. (47.35, -2.27%) and Divi's Laboratories Ltd. (3,577.35, -1.94%).

 
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The Baseline
23 Feb 2024
Five Interesting Stocks Today

1. Thermax:

This heavy electrical equipment company hit an all-time high of Rs 3,772.9 per share on Friday, with a 22.3% rise in the past month. This rise followed a licensing and technical assistance deal with South Korea’s Flowtech. The deal enables Thermax to obtain technology to manufacture polycarboxylate ether products known for their water-reducing abilities, and improve concrete setting time. This will also strengthen its construction chemicals business, which currently accounts for 7% of its top line. The company appears in a screener of stocks with rising mutual fund shareholding in the past month.

In Q3FY24, Thermax’s net profit rose 88.9% YoY to Rs 238.3 crore, beating Trendlyne’s Forecaster estimates by 54%, while its revenue grew 13.9% YoY to Rs 2,382.8 crore, slightly missing forecasts by 1.1%. This profit boost was mainly from an exceptional gain of Rs 126 crore, from transferring leasehold rights for a vacant plot. 

The firm's green energy solution contributes 5.1% to revenue, while accounting for 50% of interest payments. This has significantly impacted profitability.

Thermax has not received any significant orders in the past two quarters due to a slowdown in the domestic business. However, its management is optimistic that bidding for domestic power projects will lead to a quarterly order inflow of Rs 2,400 crore for the next three quarters. They expect it to ramp up after Q1FY25, helped by projects in the Middle East.

MD and CEO, Ashish Bhandari, announced plans to invest Rs 1,000 crore in Gujarat to  set up renewable energy capabilities and build-own-operate customer plants for biomass over FY25.

Post-results, HDFC Securities maintains a ‘Buy’ rating on Thermax as they expect the company to benefit from its investments in the clean energy and sustainability sectors. They expect a revenue CAGR of 10.6% and adjusted profit after tax CAGR of 18% over FY24-26.

2. JK Lakshmi Cement:

This cement & cement products manufacturer rose by 3.5% over the past week, as brokerages like HDFC Securities, Axis Securities, and SBI Securities maintain their ‘Buy’ ratings on the stock. Its Q3FY24 net profit has risen by 88.1% YoY to Rs 143.7 crore and revenue increased by 9.1% YoY. It beat Trendlyne Forecaster estimates for net profit by 9.4% but missed revenue estimates by 3.1%. However, its EBITDA margin improved by 588 bps YoY on the back of a decline in fuel expenses and higher price realization. The company appears in a screener of stocks in the Nifty 500 with consistently high returns over five years.

In Q3FY24, JK Lakshmi Cement reported a 7.6% YoY increase in sales volume to 29.6 lakh tonnes. The growth in margin was supported by premium cement sales, which accounted for 25% of trade sales volume. The firm’s fuel expense dropped by 14.7% YoY thanks to enhanced renewable energy use and its waste heat recovery system (WHRS). Due to the imposition of busy season charges by railways, the company moved 90% of its volume by road and the remainder by train, leading to a 5% YoY increase in freight cost per tonne to Rs 1,330. 

The firm’s clinker capacity and grinding capacity utilization stood at 105% and 79% respectively for the quarter. The management has guided capex plans of Rs 2,500 crore for the next 2-3 years. The capex will be used to add 2.3 MT in clinker capacity and another 4.6 MT for the grinding unit.

Management expects a volume growth of 8-10% in Q4FY24 and highlights a reduction in cement costs across most locations, which are currently 2-3% lower than Q3FY24 exit levels.

SBI Securities has given a ‘Buy’ rating to the company, with a target price of Rs 1,090. They say, “The company’s recently announced expansion plans, coupled with its target to reach a full-year EBITDA/Tonne of Rs 1,000 in the next 14-18 months, will aid long-term sustainable growth.” 

3. Quess Corp: 

Thissoftware and services firm rose by 7.8% on Monday following its announcement of a demerger into three entities: Quess Corp (workforce management), Digitide Solutions (insurance technology and human resource organization), and Bluspring Enterprises (facility management and industrial services). These segments currently contribute 68%, 14%, and 18% to the company’s revenue, respectively. The demerger aims to improve valuations and enable a focus on pure-play verticals. It is expected to be completed in 12-15 months, with shareholders getting one share each of Digitide Solutions and Bluspring Enterprises for every share held in Quess Corp.

In  Q3FY24, the company reported a revenue increase of 8.4% YoY and a net profit decline of 27.4%. It missedTrendlyne’s Forecaster estimates by 4.4% and 18.9%, respectively. The decline in profitability was on account of higher employee expenses as the firm added 22,000 employees in the past two quarters. It also reduced spending in Indian IT staffing. Some employees have been placed in the BFSI, manufacturing and telecom segments.  

The firm has reduced marketing expenses and is trying to enhance the client base to increase employee utilization. The firm's CEO, Guruprasad Srinivasan, stated that the firm has been focusing on niche segments like e-commerce, healthcare, FMCG and industrials to offset the spending cuts in the IT sector.

Quess Corp has also cut its gross debt by Rs 110 crore to Rs 400 crore. Margins are expected to expand in FY25, owing to a rebound in India’s IT solutions and increased infrastructure activities like port development, airports, and power plants, which would boost the company’s manpower supply business.

Motilal Oswal Securities predicts a 50% net profit CAGR over FY24-FY26 on a low base of FY24. Formalization of labour reforms and margin expansion are expected to drive the bottom line. However, due to concerns over taxation, a weak macroeconomic environment, and high valuations, the brokerage maintains a ‘Neutral’ rating on the firm.

4. NBCC (India): 

This construction & engineering company has risen by 4.6% over the past week, after winning multiple orders and signing two memorandums of understanding (MoUs). The company bagged three orders worth Rs 369 crore from multiple clients on Monday. The orders include infrastructure development for Rani Lakshmi Bai Central Agricultural University in Jhansi, a court complex and residential quarters in Telangana, and renovations of Noida’s ICAI Bhavan.

On Tuesday, NBCC won an order worth Rs 560 crore to construct the permanent campus of NIT Sikkim. The company also signed an agreement with the Greater Noida Authority to develop a purchasable floor area ratio (FAR) for five existing Amrapali projects on Thursday, with a total value of Rs 10,000 crore. It also signed two MoUs with Housing and Urban Development Corp to provide consultancy services and asset monetisation activities. 

NBCC released its Q3FY24 results on February 13, reporting a 60.3% YoY increase in net profit to Rs 110.7 crore. Its revenue also grew by 13.7% YoY to Rs 2,405.5 crore, beating Trendlyne’s Forecaster estimates by 10.8%. The revenue boost was on the back of improvement in the PMC, real estate and EPC segments. It appears in a screener of stocks with a 10% increase in share price over three months, with rising net profit growth.

Kellambally Mahadevaswamy, CMD of the company, said, “The company has a robust order backlog, with our consolidated order book reaching Rs 5,300 crore. We have set a target of around Rs 12,000 crore for the next financial year, a significant hike from the current target of Rs 8,000 crore.”

5. Devyani International:

This restaurant chain has fallen by 11.5% over the past month following an 86.6% YoY drop in its Q3FY24 net profit to Rs 9.6 crore. It missed Trendlyne’s Forecaster estimates by 77.4%. The decline was due to increased finance costs, employee benefits and depreciation expenses. A lower deferred tax credit (Rs 1.8 crore) compared to Q3FY23 (Rs 14.3 crore), and an exceptional item worth Rs 8.8 crore also contributed to the decline. In addition, Yum Restaurants India sold its entire 4.4% stake (5.3 crore shares) in Devyani International for approximately Rs 871.1 crore through a block deal on Wednesday.

Despite opening new stores (a 24% increase YoY), its revenue only grew by 6.7% YoY due to subdued same-store sales growth (SSSG) in the KFC and Pizza Hut brands. KFC and Pizza Hut reported SSSG of -4.7% and -13%, driven by falling dine-in sales. The management said that the pizza category remains under pressure due to increasing competition from unorganised players. 

The past quarter has been volatile for QSR (quick services restaurant) companies, with demand dipping after the Cricket World Cup and Diwali seasons. According to Ravi Jaipuria, the Chairman of Devyani International, “Consumer sentiment remains subdued, despite Q3 traditionally being a strong and festive quarter. We have also seen the impact of certain international geopolitical events on the American brands that we deal with.” However, the management is hopeful of a recovery in the next few quarters.

The company added 94 stores in Q3, taking the total to 1,452. It also acquired 283 KFC stores in Thailand. Devyani plans to add 250-275 stores in Q4 and is on track to achieve its target of 2,000 stores in FY24.

Motilal Oswal reiterates its ‘Buy’ rating on the stock with a lower target price of Rs 195. The brokerage remains cautious due to the demand challenges in the near term.

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
23 Feb 2024
Market trades flat, Kalyani Steels signs an MoU with the government of Odisha
By Trendlyne Analysis

Nifty 50closed at 22,212.70 (-4.8, 0.0%), BSE Sensexclosed at 73,059.7400 (-98.5, -0.1%) while the broader Nifty 500closed at 20,313.50 (29.6, 0.2%). Market breadth is in the green. Of the 2,035 stocks traded today, 1,071 were gainers and 932 were losers.

Indian indices pared the gains from the morning session and closed flat. The volatility index, Nifty VIX, dropped by 1.5% and closed at 15 points. Sona BLW Precision Forgings receives certification under the PLI scheme for manufacturing of the hub wheel drive motor for electric two-wheelers.

Nifty Smallcap 100 and Nifty Midcap 100 closed higher with the benchmark index closing flat. Nifty Media and Nifty Pharma closed higher than Thursday’s closing level. According to Trendlyne’s sector dashboard, forest materials emerged as the top-performing sector of the day, with a rise of over 1.4%. 

Most European indices trade mixed. US indices futures trade flat, indicating a cautious start. On Thursday, NVIDIA shares closed 16.4% higher as its earnings beat estimates by 12.2%. Germany slipped into a technical recession after its Q4 2023 GDP contracts by 0.2% YoY.

  • Relative strength index(RSI) indicates that stocks like Indian Hotels, Tata Investment Corp, Varun Beveragesand Zydus Lifesciencesare in the overbought zone.

  • ideaForge Technologyrises as it showcases products in the US market, signalling the firm’s entry into the US market. The drone manufacturer is globally ranked fifth in the dual-use category of civil and defence sectors.

  • Zuari Industriesrises as it enters into a sale deed with Zuari Infinity to sell 2.3 lakh square meters of land parcels in Goa for a consideration of 83.4 crore.

  • Kalyani Steelsrises sharply as it signs a memorandum of understanding (MoU) with the government of Odisha to set up two manufacturing facilities in the state. The company will establish a 0.7 MTPA steel & auto parts manufacturing complex and a 10,000 TPA aero & defence parts plant with a total estimated capex of Rs 11,750 crore.

  • The Board of Cricket Control in India (BCCI) selects Ceatas the official partner to sponsor certain segments of the Indian Premier League. Ceat is to spend an aggregate amount of Rs 240 crore over the next five years.

  • GPT Healthcare's Rs 525.1 crore IPO gets bids for 0.6X the available 2 crore shares on offer on the second day of bidding. The retail investor quota gets bids for 1.1X the available 98.8 lakh shares on offer.

  • Juniper Hotels’ Rs 1,800 crore IPO gets bids for 0.9X the available 2.9 crore shares on offer on the third day of bidding. The retail investor quota gets bids for 1.1X the available 52.6 lakh shares on offer.

  • KR Choksey maintains its 'Accumulate' rating on Glenmark Pharmaceuticalswith a target price of Rs 984. This implies a potential upside of 9.1%. The brokerage believes that the company's injectable portfolio in the US, the launch of Ryaltris in various markets and momentum with key brands in existing geographies will drive growth going forward. It expects the company's revenue to grow at a CAGR of 9.2% over FY23-26.

  • Jio Financial Services rises over 10% today and crosses the Rs 2 lakh crore market capitalization mark for the first time. This comes amid speculations from two weeks ago about the company discussing the acquisition of Paytm's wallet business since November.

  • Foreign institutional investors invest Rs 3,539.9 crore in the equity market over the past week, according to Trendlyne's FII dashboard. On the other hand, index options witness the highest outflow of Rs 65,895.6 crore from foreign investors. Meanwhile, mutual funds are net buyers in the equity market, injecting Rs 3,192.4 crore during the same period.

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

  • Goldman Sachs downgrades Yes Bankto 'Sell' from 'Neutral' with an unchanged target price of Rs 16 per share. This indicates a potential downside of 39.9%. The brokerage highlights the bank's contracting margins and bottoming of credit cost improvements.

  • According to Petroleum Planning and Analysis Cell (PPAC) data, India's crude oil imports reached a 21-month high in January, fuelled by a surge in demand caused by robust industrial activity. Crude oil imports increased by 5.7% YoY and 9.5% MoM to 21.4 million metric tonnes in January.

  • Hotels, Education, Electronic Components, and Telecom Cablesindustries rise more than 8% over the past week.

  • Dilip Buildcon'ssubsidiary signs a concession agreement worth Rs 270.1 crore with the Public Works Department, Goa, for the construction of observatory towers, viewing galleries and parking facilities for the new Zuari Bridge.

  • Bharat Forge infuses 15 million euros (approximately Rs 133.6 crore) in its arm, Bharat Forge Global Holding GmbH (BFGH). This amount will then be invested into Bharat Forge Holding (BFH) for further investment in its subsidiary, Bharat Forge Aluminiumtechnik GmbH.

  • Reports suggest that 81.7 lakh shares (0.3% equity) of Federal Bank, amounting to Rs 125.3 crore, change hands in two large trades.

  • IT stocks like L&T Technology Services, MphasiS, Persistent Systemsand Coforgeare rising in trade. All constituents of the broader Nifty IT index are also trading in the green.

  • Vodafone Idea surges as it announces that its board will meet on Tuesday to consider a fundraising proposal. The proposal will involve one or more tranches, including rights issue, further public offer, private placement, or qualified institutional placement (QIPs).

  • Kirloskar Ferrous Industriesis falling as it temporarily suspends operations of its mini blast furnace at the Hiriyur plant due to poor market conditions.

  • Citi initiates coverage on Honasa Consumer with a 'Buy' rating and a target price of Rs 550. The brokerage expects its company-specific initiatives to drive growth. It notes that the company's moderate margin expansion and entry into new subcategories will benefit the business in the long run.

  • Morepen Laboratories is rising as its board of directors approves the issue of equity shares worth Rs 350 crore through a qualified institutional placement (QIP).

  • Ramkrishna Forgingsrises as its board approves the initiation of manufacturing and supply operations from its Mexico facility., backed by a $3.5 million per annum (approx Rs 29 crore per annum) agreement with a North American client. This will also help the board approve a Rs 90 crore investment to set up a facility to manufacture passenger vehicle components.

  • Angel Oneis rising as its board of directors approves raising Rs 2,000 crore in multiple tranches by issuing equity shares via preferential issue, follow-on public offer (FPO) or qualified institutional placement (QIP).

  • Eureka Forbes’promoter, Lunolux, sells a 10% stake (1.9 crore shares) in the company for approximately Rs 976.7 crore in a block deal on Thursday. Meanwhile, Goldman Sachs and Morgan Stanley Asia buy 1.2% and 1% stakes in the company.

  • Nifty 50was trading at 22,256.05 (38.6, 0.2%), BSE Sensexwas trading at 73,358.74 (200.5, 0.3%) while the broader Nifty 500was trading at 20,339.80 (55.9, 0.3%).

  • Market breadth is highly positive. Of the 1,800 stocks traded today, 1,428 were on the uptrend, and 325 went down.

Riding High:

Largecap and midcap gainers today include Adani Wilmar Ltd. (389.95, 8.12%), Vodafone Idea Ltd. (17.55, 7.67%) and Indus Towers Ltd. (241.15, 7.11%).

Downers:

Largecap and midcap losers today include YES Bank Ltd. (26.20, -3.50%), NHPC Ltd. (91.65, -2.60%) and Indian Overseas Bank (67.5000, -2.53%).

Movers and Shakers

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

Top high volume gainers on BSE included Usha Martin Ltd. (333.45, 9.98%), Indiabulls Housing Finance Ltd. (207.00, 9.67%) and Adani Wilmar Ltd. (389.95, 8.12%).

Top high volume losers on BSE were Ratnamani Metals & Tubes Ltd. (2,976.55, -3.26%), Galaxy Surfactants Ltd. (2,475.45, -1.14%) and G R Infraprojects Ltd. (1,268.05, -0.04%).

Zydus Wellness Ltd. (1,595.70, 0.33%) was trading at 22.7 times of weekly average. Welspun Living Ltd. (161.20, 3.97%) and Gujarat Alkalies & Chemicals Ltd. (821.60, -0.04%) were trading with volumes 12.9 and 11.9 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

42 stocks took off, crossing 52 week highs,

Stocks touching their year highs included - Adani Ports & Special Economic Zone Ltd. (1,320.70, 0.74%), Ambuja Cements Ltd. (602.95, 1.72%) and Astral Ltd. (2,075.90, 5.64%).

12 stocks climbed above their 200 day SMA including Usha Martin Ltd. (333.45, 9.98%) and Adani Wilmar Ltd. (389.95, 8.12%). 8 stocks slipped below their 200 SMA including Eureka Forbes Ltd. (482.10, -2.00%) and Balaji Amines Ltd. (2,238.05, -1.31%).

 
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The Baseline
23 Feb 2024
By Bhavani Eswar

The global economy's fragile state in 2023, shaped by rising geopolitical tensions, high interest rates, and elevated inflation, has led major institutions such as the IMF and OECD to project a bleak outlook for global growth in 2024. 

Key economies, including Japan and the United Kingdom, have already slipped into technical recessions – defined as GDP contraction for at least two successive quarters – during the September-December quarter of 2023. This is troubling for India, as six major countries that are facing recession (Germany, Japan, Thailand, Malaysia, South Africa, and the UK) are key trading partners, making up 10% of its total trade.

Another factor impacting world trade is the Houthi rebels’ presence on the crucial Red Sea trade route, which is responsible for 12% of global trade. The rebel attacks have forced exporters to reroute a major share of their shipments away from the Suez, significantly increasing travel distances and costs. Going around the Cape of Good Hope adds around 6,000 km to trips connecting Europe and Asia, leading to increased freight and fuel costs for exporters.

In this edition of the Chart of the Week, we examine the trends in countries’ trade balances and assess their trade surplus/deficit. Emerging economies like India and China have witnessed sharp changes in their trade balances in 2023. 

Emerging markets see steep monthly fall in trade balances in 2023

China, the world’s largest exporter, saw its trade surplus fall by 18.7% YoY to $264.2 billion in 2023 due to weak global and domestic demand for Chinese goods. Its trade surplus slumped the most in February 2023 by 87% MoM to $11.8 billion, following a 6.8% YoY decline in exports during January and February 2023. 

Meanwhile, the US trade deficit increased by 11.1% in 2023. It widened by 24.5% MoM to $74.6 billion in April 2023, reaching its highest level since October 2022. According to the US Commerce Department, this marked the largest MoM increase in the trade deficit since April 2015, driven by a fall in the value of goods exports like crude oil. 

As trade balances in China and the US moved negatively, India’s trade deficit expanded to an all-time high of $31.5 billion in October 2023. This surge was due to a 70% increase in oil, gold, and silver imports during the period. 

From April 2023 to January 2024, India’s merchandise exports decreased by 4.5% YoY to $353.9 billion and imports declined by 6.7% YoY to $561.1 billion. 

In January 2024 however, India’s trade deficit fell to $17.5 billion, an 11% improvement from December. This was due to a 6.9% MoM decrease in imports and a 4% MoM fall in exports. The export decline was driven by a rise in freight charges due to disruptions along the Red Sea trade route, which handles 30% of Indian exports.

Russia remained a major trading partner, accounting for 44.8% of Indian imports during the same period. India’s primary export destinations included Australia, Singapore, the United Kingdom, China, and the UAE. Rating agency ICRA expects India’s trade deficit to be between $20 billion and $25 billion in the remaining months of FY24, resulting in a current account deficit (CAD) of around 1.7% of GDP in Q4FY24.

Germany’s trade surplus increased by 41.5% in 2023, with the December trade surplus reaching its highest since January 2021 at $24.2 billion. This growth was driven by increased demand for German manufactured goods in the US, UK, and China. 

Vietnam has emerged as a success story in global trade, posting a trade surplus for the eighth consecutive year. The country reported a trade surplus of $28 billion for 2023 as imports in 2023 fell 8.9% to $327.5 billion. Although exports also declined by 4.4% YoY to $355.5 billion, this was due to an 8.3% drop in smartphone shipments, its largest export item. To compensate for the fall in exports, Vietnam extended a value-added tax cut to boost domestic consumption.