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Trendlyne Marketwatch
Trendlyne Marketwatch
14 Feb 2024
Market closes higher, Mahindra & Mahindra's Q3FY24 revenue rises 15.8% YoY to Rs 35,218.3 crore
By Trendlyne Analysis

Nifty 50closed at 21,840.05 (96.8, 0.5%), BSE Sensexclosed at 71,833.17 (278.0, 0.4%) while the broader Nifty 500closed at 19,922.30 (139.4, 0.7%). Market breadth is highly positive. Of the 2,016 stocks traded today, 1,341 showed gains, and 640 showed losses.

Indian indices recovered from their day lows and closed in the green. The Indian volatility index, Nifty VIX, fell 2.3% and closed at 15.4 points. National Aluminiumclosed sharply higher as its net profit surged by 83.6% YoY to Rs 470.6 crore in Q3FY24, helped by lower costs of raw materials, power & fuel and employee benefits.

Nifty Smallcap 100 and Nifty Midcap 100 closed in the green, outperforming the benchmark index. Nifty Realty and Nifty Auto closed higher than their Tuesday close.  According to Trendlyne’s sector dashboard, Media emerged as the top-performing sector of the day, with a rise of 3%.

Asian indices recovered from their day lows and closed mixed on a volatile day of trade. European indices extended their gains from the open and traded in the green. US index futures also traded higher, indicating a positive start to the trading session. Brent crude oil futures traded higher after closing in the green for the past eight trading sessions.

  • Hindustan Copper sees a long buildup in its February 29 future series as its open interest rises 16.1% with a put-call ratio of 0.8.

  • One97 Communications falls as the Enforcement Directorate initiates a preliminary inquiry against Paytm Payments Bank. The Reserve Bank of India rules out any review of its decision to restrict Paytm Payments Bank from accepting new deposits from February 29.

  • Tata Power Renewable Energy, a subsidiary of Tata Power, signs a Rs 105 crore power delivery agreement with Tata Communications to build an 18.7 MW group captive solar power plant. The plant is expected to produce 40 million units of power and reduce 30,000 tonnes of carbon emissions annually.

  • Mahindra & Mahindra's Q3FY24 net profit falls marginally, while revenue rises 15.8% YoY driven by the automotive segment. The stock appears in a screener for top Indian export companies.

  • Reports suggest that 11.3 lakh shares (0.1% equity) of CG Power and Industrial Solutions, amounting to approximately Rs 48.1 crore, change hands in a large deal.

  • SBI Securities keeps a 'Buy' rating on JK Lakshmi Cementwith an upgraded target price to Rs 1,090. This indicates a potential upside of 20.5%. The firm is optimistic about the company's recently announced expansion plans helping long-term sustainable growth. It forecasts a 15.1% CAGR in net profit for FY23-26.

  • Vibhor Steel Tubes' Rs 72.2 crore IPO gets bids for 72X the available 35.9 lakh shares on offer on the second day of bidding. The retail investor quota gets bids for 70.8X the available 17.8 lakh shares on offer.

  • National Aluminiumrises sharply as its net profit surges by 83.6% YoY to Rs 470.6 crore in Q3FY24, helped by lower costs of raw materials, power & fuel and employee benefits. Revenue grows by 1.5% YoY, driven by the chemicals segment. It shows up in a screenerof stocks with over a 10% rise in share price in the past three months, with net profit growth.

  • CRISIL Ratings forecasts a significant increase in the operating profit of the domestic airline sector, exceeding 20% in FY25. This growth is driven by a robust return in passenger volume, a stable foreign exchange rate, and the airlines' ability to pass on fluctuating fuel costs to consumers.

  • Technocraft Industries’ net profit falls by 29.4% YoY to Rs 58.3 crore in Q3FY24 due to rising employee benefits and inventory costs. Its revenue increases by 4% YoY to Rs 538.3 crore.

  • JSW Steel'scrude steel production grows by 7% YoY to 23.6 lakh tonne in Q3FY24, helped by increased Indian operations. The company appears in a screenerof stocks with upgraded analyst recommendations or target prices over the past three months.

  • Prestige Estates Projectsfalls sharply as its net profit declines by 9% YoY to Rs 116.3 crore in Q3FY24 due to higher contractor, raw material, land and finance costs. Revenue plunges 22.5% YoY despite its sales rising by 81% YoY. It appears in a screenerof stocks with declining return on equity (RoE) over the past two years.

  • India’s WPI inflation eases to 0.3% in January from 0.7% in December 2023. Wholesale food inflation stands at 3.8%, compared to 5.4% in December.

  • Godrej Properties acquires 12.5 acres in Hyderabad with a revenue potential of Rs 3,500 crore. The planned development is estimated to offer 4 million square feet of saleable area.

  • NODWIN Gaming, a subsidiary of Nazara Technologies, signs an agreement to acquire 100% ownership in Turkey's Ninja Global. The acquisition will help Nazara Technologies expand into Central Asia, where the mobile games market is growing rapidly.

  • Rashi Peripherals’shares debut on the bourses at a 9.2% premium to the issue price of Rs 311. The Rs 600 crore IPO has received bids for 59.7 times the total shares on offer.

  • The Society of Indian Automobile Manufacturers (SIAM) reports a 23.6% YoY increase in two-wheeler sales to around 15 lakh units in January. Passenger vehicle sales also rise 13.6% YoY to 3.9 lakh units.

  • NBCC rises sharply as its net profit rises 58.9% YoY to Rs 113.6 crore in Q3FY24 due to lower land purchase and raw material expenses. Its revenue increases by 12.8% YoY to Rs 2,471.5 crore.

  • Jana Small Finance Bank’s shares debut on the bourses at a 4.3% discount to the issue price of Rs 414. The Rs 570 crore IPO has received bids for 18.5 times the total shares on offer.

  • Capital Small Finance Bank debuts on the bourses at an 8.8% discount to the issue price of Rs 468. The Rs 523.1 crore IPO has received bids for 4 times the total shares on offer.

  • Sanjeev Singhal, Director of Finance at Mazagon Dock Shipbuilders, reaffirms the company's revenue growth forecast of 12-15% for FY24 and around 15% for FY25. He mentions efforts to finalize a submarine order within the year. The firm's Q3FY24 net profit surged 76.9% YoY to Rs 626.8 crore, with revenue increasing by 32.1% YoY.

  • Bharat Electronics signs a Rs 2,167.5 crore contract with the Indian Navy to supply an indigenously designed and developed electronic warfare suite for warships.

  • Zee Entertainment Enterprises' Q3FY24 net profit rises 140.7% YoY to Rs 58.5 crore, while revenue falls 2.5%. The profit boost is attributed to high taxes and high losses from discontinued operations in Q3FY23. The company appears in a screener for stocks with low debt.

  • Wiproacquires a 60% stake in Aggne Global for $66 million (approx. Rs 548.5 crore). This acquisition will strengthen its competitive advantage in the property & casualty insurance segment.

  • IRCTC's net profit grows by 17.4% YoY to Rs 300 crore in Q3FY24 due to reduced raw material and finance costs. Revenue rises by 21.8% YoY to Rs 1,118.3 crore on the back of improvement in the catering, rail neer, internet ticketing and tourism segments. It appears in a screener of stocks with rising net cash flow and cash from operating activities.

  • Nifty 50 was trading at 21,593.65 (-149.6, -0.7%), BSE Sensex was trading at 71,035.25 (-519.9, -0.7%) while the broader Nifty 500 was trading at 19637.60 (-145.3, -0.7%)

  • Of the 1,782 stocks traded today, 403 showed gains, and 1,339 showed losses.

Riding High:

Largecap and midcap gainers today include Hindustan Petroleum Corporation Ltd. (543.30, 8.30%), Bharat Petroleum Corporation Ltd. (623.65, 6.73%) and Indian Bank (525.90, 6.32%).

Downers:

Largecap and midcap losers today include One97 Communications Ltd. (342.15, -10.00%), Info Edge (India) Ltd. (5,112.55, -4.29%) and L&T Technology Services Ltd. (5,402.75, -3.78%).

Crowd Puller Stocks

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

Top high volume gainers on BSE included Mangalore Refinery And Petrochemicals Ltd. (203.95, 11.63%), Jyothy Labs Ltd. (481.60, 11.39%) and Kalpataru Projects International Ltd. (991.95, 10.21%).

Top high volume losers on BSE were L&T Technology Services Ltd. (5,402.75, -3.78%), Relaxo Footwears Ltd. (851.00, -1.92%) and Gujarat Gas Ltd. (559.75, -0.35%).

Natco Pharma Ltd. (884.80, 3.26%) was trading at 8.7 times of weekly average. Grindwell Norton Ltd. (2,195.00, -0.23%) and Elgi Equipments Ltd. (668.15, 8.95%) were trading with volumes 4.9 and 4.2 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

21 stocks made 52 week highs, while 5 stocks tanked below their 52 week lows.

Stocks touching their year highs included - Abbott India Ltd. (29,367.55, 1.67%), Apollo Hospitals Enterprise Ltd. (6,754.10, 0.52%) and Bajaj Auto Ltd. (8,083.30, 2.10%).

Stocks making new 52 weeks lows included - HDFC Bank Ltd. (1,384.05, -0.75%) and Orient Electric Ltd. (192.80, 1.18%).

8 stocks climbed above their 200 day SMA including KNR Constructions Ltd. (270.70, 4.16%) and FSN E-Commerce Ventures Ltd. (153.80, 3.95%). 13 stocks slipped below their 200 SMA including Supreme Industries Ltd. (3,796.80, -3.00%) and Tamilnad Mercantile Bank Ltd. (479.70, -2.70%).

 
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The Baseline
13 Feb 2024
5 analyst picks in the PE buy zone this week
By Abhiraj Panchal

This week, we look at stocks trading in the PE ‘Buy’ zone, as identified by analysts. These stocks are in the 'Buy' zone if their current PE is low compared to the range they have historically traded in.

1. Affle (India):

Axis Direct maintains its ‘Buy’ recommendation on this internet software & services company with a target price of Rs 1,350, indicating an upside of 21.6%. The stock is currently trading in the PE Buy Zone. In Q3FY24, the company’s net profit improved by 11.4% YoY to Rs 76.8 crore, while its revenue increased by 29.6% YoY to Rs 508.9 crore. Analyst Omkar Tanksale believes that the company’s EBITDA improvement was led by a sharp recovery in its international business. 

Tanksale says, “From a long-term perspective, Affle has strong device and client additions. We also believe that the company has superior penetration in the international business and strong revenue growth potential going ahead.” The management is confident that demand will increase in the medium-term due to deals secured in previous quarters. The analyst expects margin improvement and forecasts net sales and profit of Rs 2,118 crore and Rs 599 crore for FY24. 

2. Lemon Tree Hotels:

HDFC Securities maintains a 'Buy' rating on this hotel company with a target price of Rs 152, indicating an upside of 15.2%. The stock is currently trading in the PE Buy Zone. In Q3FY24, the company's revenue improved by 24.3% YoY to Rs 290.9 crore, though net profit dipped by 11.4% YoY to Rs 35.4 crore. Analyst Amit Kumar attributes the profit decline to lower occupancy at Aurika, Mumbai, (opened in October 2023) and ongoing renovations in the Keys portfolio. 

Despite a drop in occupancy by 163 bps YoY to 65.9%, Kumar remains positive due to a 10% growth in average room rate (ARR). He expects the company to reduce its Rs 1,950 crore debt periodically to become debt-free in the next four years. 

Kumar says, “Lemon Tree has a strong expansion plan to build a portfolio of 13,433 rooms in 155 hotels by FY27.” He sees growth in ARR from renovations in the Keys portfolio and increased occupancy at Aurika as key growth drivers. He expects an EBITDA CAGR of 20%, supported by an increase in occupancy to 73-75% over FY24-26.

3. Manappuram Finance:

Motilal Oswal maintains its ‘Buy’ call on this finance company with a target price of Rs 230, indicating an upside of 31.4%. The stock is currently trading in the PE Buy Zone. In Q3FY24, its net profit grew by 34.7% YoY to Rs 428.6 crore. Analysts Abhijit Tibrewal, Nitin Aggarwal, and Gautam Rawtani see profitability in the gold and microfinance businesses as the major driver of the firm's net interest income growth. NII grew 33% YoY to Rs 1,450 crore. They say, “Despite a 20bps increase in the cost of borrowings in Q3, the consolidated Net interest margin (NIM) expanded by 35bps to 15.3% due to healthy expansion in yields across product segments.”

The analysts are positive about the company's future, highlighting its active diversification into non-gold segments to reduce its cyclical dependency on gold loans. In Q3FY24, non-gold products accounted for 49% of the AUM mix, a 7% point YoY increase. They forecast a 9% CAGR in gold loan AUM over FY24-26 and expect net profit to grow at a 27% CAGR over the same period, leading to a consolidated RoE of 20% by FY26.

4. InterGlobe Aviation (Indigo):

Geojit BNP Paribas maintains a ‘Buy’ rating on this airline company with a target price of Rs 3,624, indicating an upside of 18.3%. The stock is currently trading in the PE Buy Zone. Analyst Anil R says, “Healthy demand from leisure and corporate travel continues to aid revenue growth. Average aircraft utilization was healthy at 85.8%.” 

In Q3FY24, Indigo’s net profit jumped 110.8% YoY to Rs 2,998.1 crore, while revenue increased by 30.3% YoY to Rs 19,452.2 crore. The analyst believes that Indigo was able to beat revenue estimates due to a 23.7% YoY surge in the number of passengers and a strong pricing environment. 

Anil expects the phased removal of Pratt & Whitneyengines in 2024 to impact operations. However, he is upbeat about the management’s risk mitigation plans through secondary market leasing. With a market share of 63.4%, he foresees the earnings momentum to continue, led by strong demand and cost efficiencies.

5. State Bank of India:

Bob Capital Markets maintains its ‘Buy’ call on this bank with a target price of Rs 842, indicating an upside of 19.1%. The stock is currently trading in the PE Buy Zone. In Q3FY24, the bank’s net profit fell by 28.5% YoY to Rs 11,064.1 crore, while its net interest income grew by 5% YoY. Analyst Ajit Agrawal attributes the fall in net profit to a one-off pension and ex-gratia provision totalling Rs 7,100 crore. 

The analyst believes that the 14% YoY growth in advances was enabled by robust growth in SME loans, retail book, and express credit. Meanwhile, deposits grew 13% YoY, driven by term deposits. He says, “We pencil in a credit and deposit CAGR of 15% and 13%, respectively, over FY24-FY26.” Agrawal expects the bank’s healthy business growth, stable margins, and asset quality to boost profitability. He forecasts the bank to maintain its NIM at 3% and deliver an RoE of 17% by FY26.

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

(You can find all analyst picks here)

 
Trendlyne Marketwatch
Trendlyne Marketwatch
13 Feb 2024
Market closes higher, Siemens' Q3FY24 net profit grows by 9.2% YoY to Rs 505.4 crore
By Trendlyne Analysis

Nifty 50closed at 21,743.25 (127.2, 0.6%), BSE Sensexclosed at 71,555.19 (482.7, 0.7%) while the broader Nifty 500closed at 19,782.90 (107.7, 0.6%). Market breadth is in the red. Of the 2,017 stocks traded today, 892 were on the uptick, and 1,102 were down.

Indian indices extended the gains from the afternoon session and closed in the green. The volatility index, Nifty VIX, dropped by 1.4% and closed at 15.8 points. Steel Authority of India's (SAIL) net profit drops by 22% YoY to Rs 422.9 crore in Q3FY24 due to higher employee benefit expenses. Revenue also decreases by 6.8% YoY to Rs 23,348.6 crore on reduced revenue from the Bhilai, Durgapur, Rourkela and Bokaro steel plants.

Nifty Midcap 100 and Nifty Smallcap 100 closed higher following the benchmark index. Nifty IT and Nifty PSU Bank closed higher than Monday’s closing level. According to Trendlyne’s sector dashboard, telecommunication equipment emerged as the top-performing sector of the day, with a rise of over 2.8%. 

Most European indices trade lower except for Switzerland’s SMI index trading in the green. US indices futures trade flat, indicating a cautious start. Brent crude prices trade higher around $81.6 per barrel, as Israel prepares for an offensive in Rafah amidst US and Jordan pressuring for an Israel-Hamas truce.

  • Money flow index (MFI) indicates that stocks like Olectra Greentech, EIH, Dr. Reddy's Laboratories and Sun Pharmaceutical Industries are in the overbought zone.

  • Siemens' Q3FY24 net profit grows by 9.2% YoY to Rs 505.4 crore on lower inventory and finance expenses. Its revenue increases by 20% YoY, helped by growing income from mobility, digital industries and smart infrastructures. The company appears in a screener of stocks with improving RoA for the past two years.

  • HPL Electric & Power rises sharply as it bags an order worth Rs 181 crore from a leading advanced metering infrastructure service provider (AMISP) to supply smart meters.

  • Vibhor Steel Tubes' Rs 72.2 crore IPO gets bids for 15X the available 35.9 lakh shares on offer on the first day of bidding. The retail investor quota gets bids for 20.3X the available 17.8 lakh shares on offer.

  • Saurabh Gupta, CFO of Dixon Technologies, identifies the mobile segment as a key growth driver in FY25, expecting it to contribute over 50% of revenue. He also mentions plans to onboard new clients in the IT hardware sector.

  • Entero Healthcare Solutions' Rs 1,600 crore IPO gets bids for 1.3X the available 71.5 lakh shares on offer on the third day of bidding. The retail investor quota gets bids for 1.2X the available 13.1 lakh shares on offer.

  • Surya Roshniwins orders worth Rs 214.5 crore during the week for the supply of MS-coated pipes to a domestic entity over the week.

  • Larsen & Toubrorises as it bags orders worth Rs 1,000-2,500 crore for its hydrocarbon business in the Middle East and India. The orders involve the engineering, procurement, and construction of an enclosed ground flare system in India and a brownfield upgrade of shutdown systems in the Middle East.

  • Retail sales in the automotive industry rise 15% YoY to 21.3 lakh units in January, shows data from the Federation of Automotive Dealers' Association. Two-wheeler retail sales are up around 15% YoY, while car sales increase by 13.3% YoY.

  • Metal stocks like Hindalco Industries, Steel Authority of India (SAIL), National Aluminiumand NMDCfall more than 2% in trade. The broader Nifty Metalindex also falls more than 3% in trade.

  • KIOCL rises sharply as it reports a net profit of Rs 39 crore in Q3FY24 as compared to a net loss of Rs 33.9 crore in Q3FY23. This rise is due to lower inventory, employee benefit, and service contract expenses. Its revenue also increases by 90.9% YoY, helped by growing income from pellet plants.

  • KR Choksey maintains its 'Buy' rating on Tata Motors with an upgraded target price of Rs 1,060 per share. This indicates a potential upside of 17.2%. The firm predicts medium-term growth driven by robust infrastructure initiatives and enhanced industry profitability. It expects the company's revenue to grow at a CAGR of 12.6% over FY23-26.

  • Punjab National Bank (PNB), NMDC, BHEL, Union Bank of India, GMR Airports, and others have been added to the MSCI Global Standard Index during its February review. It has also added 27 stocks like Swan Energy, Honasa Consumer, Ethos, Cello World, and DB Realty to the Small Cap index, while removing six others.

  • GlaxoSmithKline Pharmaceuticals falls as its Q3FY24 net profit declines by 72.2% YoY to Rs 45.7 crore. Its revenue rises by 0.9% YoY. Its EBITDA margin contracts by 142 bps YoY due to higher raw material, inventory, employee benefits, and finance expenses.

  • Krsnaa Diagnostics' Managing Director Pallavi Shantilal Bhatevara steps down to the position of Executive Director, effective March 31, 2024.

  • Hindalco Industries falls sharply amid reports that its Atlanta-based subsidiary, Novalis, has raised the Bay Minette Project's capital cost from $2.5 billion to $4.1 billion and postponed its commissioning by a year. The project involves the construction of an aluminum rolling and recycling plant in the USA.

  • India’s Index of Industrial Production (IIP) grows by 3.8% in December 2023, compared to 2.4% in November, led by growth in the mining, manufacturing and electricity sectors.

  • JSW Steel forms a 50:50 joint venture (JV), JSW JFE Electrical Steel, with JFE Steel Corp, Japan, to produce grain-oriented electrical steel in India. The company will set up the manufacturing base in Bellary, with an expected investment of Rs 5,500 crore.

  • Rail Vikas Nigam rises sharply as it bags a Rs 106.4 crore order from Madhya Pradesh Paschim Kshetra Vidyut Vitran Co. The order involves the supply, installation, testing, and commissioning of a new 11 kV line in Jhabua, MP, and it is expected to be completed in two years.

  • HFCL bags a Rs 141 crore order from Bharat Sanchar Nigam (BSNL) to supply unlicensed band radios (UBRs) and related services. The deal also includes providing products and services to support BSNL's 4G network.

  • India’s CPI inflation eases to 5.1% in January from 5.7% in December 2023, driven by decreasing food prices. Food inflation stands at 8.3%, down from 9.5% in December 2023.

  • Coal India's Q3FY24 net profit rises by 17.8% YoY to Rs 9,093.7 crore due to lower raw material and inventory expenses. Its revenue increases by 2.8% YoY and EBITDA margin expands by 191 bps YoY. The company appears in a screener of stocks with improving book value per share over the past two years.

  • JSW Energy's subsidiary, JSW Neo Energy, receives a letter of award (LoA) from Solar Energy Corp of India (SECI) to construct a 500 MW wind power plant. The company expects its installed generation capacity to reach 9.8 GW by the end of 2024.

  • Mohnish Pabraisells a 2% stake in Edelweiss Financial Serviceson Friday. He now holds a 7.1% stake in the company.

  • Steel Authority of India (SAIL) falls sharply as its net profit drops by 22% YoY to Rs 422.9 crore in Q3FY24 due to higher employee benefit expenses. Revenue also decreases by 6.8% YoY to Rs 23,348.6 crore on reduced revenue from the Bhilai, Durgapur, Rourkela and Bokaro steel plants. It appears in a screener of stocks with declining net profit YoY or QoQ.

Riding High:

Largecap and midcap gainers today include Indian Railway Finance Corporation Ltd. (153.45, 15.42%), Oracle Financial Services Software Ltd. (7,700.85, 6.97%) and NHPC Ltd. (85.80, 5.93%).

Downers:

Largecap and midcap losers today include Hindalco Industries Ltd. (510.10, -12.42%), One97 Communications Ltd. (380.15, -9.96%) and GlaxoSmithKline Pharmaceuticals Ltd. (2179.65, -6.86%).

Movers and Shakers

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

Top high volume gainers on BSE included Indian Railway Finance Corporation Ltd. (153.45, 15.42%), Borosil Renewables Ltd. (540.10, 10.11%) and Aegis Logistics Ltd. (398.90, 9.12%).

Top high volume losers on BSE were Hindalco Industries Ltd. (510.10, -12.42%), GlaxoSmithKline Pharmaceuticals Ltd. (2,179.65, -6.86%) and KRBL Ltd. (338.50, -4.46%).

Kajaria Ceramics Ltd. (1,218.70, 1.96%) was trading at 4.3 times of weekly average. ITI Ltd. (292.65, 4.05%) and Redington Ltd. (199.05, 8.98%) were trading with volumes 4.0 and 3.6 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

18 stocks made 52 week highs, while 9 stocks hit their 52 week lows.

Stocks touching their year highs included - Abbott India Ltd. (28,900.00, 1.48%), Apollo Hospitals Enterprise Ltd. (6.718.90, 1.58%) and Bajaj Auto Ltd. (7,917.40, 1.12%).

Stocks making new 52 weeks lows included - Deepak Fertilisers & Petrochemicals Corporation Ltd. (495.05, -1.00%) and Rajesh Exports Ltd. (333.85, -2.55%).

11 stocks climbed above their 200 day SMA including Cholamandalam Investment & Finance Company Ltd. (1,141.70, 3.64%) and Jindal Worldwide Ltd. (355.65, 3.63%). 17 stocks slipped below their 200 SMA including Emami Ltd. (470.00, -2.66%) and Chemplast Sanmar Ltd. (446.50, -2.40%).

 
Trendlyne Marketwatch
Trendlyne Marketwatch
12 Feb 2024
Market closes lower, NHPC's Q3FY24 net profit declines by 26.8% YoY to Rs 491.9 crore
By Trendlyne Analysis

Nifty 50closed at 21,616.05 (-166.5, -0.8%), BSE Sensexclosed at 71,072.4900 (-523, -0.7%) while the broader Nifty 500closed at 19,675.20 (-286.3, -1.4%). Market breadth is moving down. Of the 2,044 stocks traded today, 323 were gainers and 1,701 were losers.

Indian indices closed in the red after opening marginally higher on a volatile day of trade. The Indian volatility index, Nifty VIX, rose 4% and closed at 16.1 points. Zydus Lifesciences rose 6.4% as its board approved a buyback of 59.7 lakh shares for Rs 1,005 each, capping the total buyback amount at Rs 600 crore. 

Nifty Smallcap 100 and Nifty Midcap 100 closed sharply lower, underperforming the benchmark index. Nifty Metal and Nifty Media closed lower than their Friday close. According to Trendlyne’s industry dashboard, Auto Tyres & Rubber Products emerged as the top-performing industry of the day, with a rise of 1.7%.

Major European indices trade in the green except for England’s FTSE 100 trading flat. Asian indices closed mixed with a majority of Asian markets closed for the Chinese New Year. US index futures traded flat, indicating a cautious start to the trading session. Brent crude oil futures traded lower after rising for five consecutive trading sessions.

  • Relative strength index(RSI) indicates that stocks like Cummins India, Life Insurance Corp of India, EIHand Multi Commodity Exchange of Indiaare in the overbought zone.

  • PSU bank stocks like Central Bank of India, Indian Overseas Bank, Punjab & Sind Bankand Bank of Maharashtraplunge more than 9% in trade. All constituents of the broader Nifty PSU Bankindex are also trading in the red, causing it to fall more than 4%.

  • NHPC falls sharply as its Q3FY24 net profit declines by 26.8% YoY to Rs 491.9 crore due to higher generation, and employee benefit expenses. Its revenue also decreases by 20.4% YoY on lower income from the electricity generation segment. The company appears in a screener of stocks with declining net cash flow.

  • Zydus Lifesciences rises to an all-time high of Rs 863.4 as its board approves a buyback of 59.7 lakh shares for Rs 1,005 each, capping the total buyback amount at Rs 600 crore. The company appears in a screener of stocks with high TTM EPS growth.

  • Ramanpreet Sohi, CFO of Honasa Consumer, reports business value growth in double-digits and volume growth in teens in Q3. He expects a margin expansion of roughly 100-150 basis points from the current levels. The company's Q3FY24 net profit falls by 12% QoQ to Rs 25.9 crore, while its revenue falls by 0.8% QoQ.

  • Hindustan Aeronautics' Q3FY24 net profit rises by 9.2% YoY to Rs 1,261.5 crore. Its revenue increases by 7% YoY and its EBITDA margin improves by 629 bps YoY due to lower finance, inventory, provisions, and impairment expenses. The company appears in a screener of stocks nearing 52-week high with significant volumes.

  • Entero Healthcare Solutions' Rs 1,600 crore IPO gets bids for 0.2X the available 71.5 lakh shares on offer on the first day of bidding. The retail investor quota gets bids for 0.8X the available 13.1 lakh shares on offer.

  • SBI Securities keeps its 'Accumulate' rating on Star Cement with an upgraded target price of Rs 240. This indicates a potential upside of 13.8%. The brokerage remains confident owing to the firm's established track record in the rapidly growing cement markets of North-East and East India. It expects the company's revenue to grow at a CAGR of 13% over FY23-26.

  • Hemant Jalan, CMD of Indigo Paints, projects revenue targets of Rs 1,300-1,400 crore for FY24 and Rs 2,000 crore for FY25. He forecasts an improvement in EBITDA margins by 100-150 basis points, focusing on expansion into Tier 1 and 2 cities.

  • Cera Sanitaryware falls sharply as its Q3FY24 net profit declines by 9.4% YoY to Rs 51.5 crore. Its revenue also decreases by 4.1% YoY and its EBITDA margin drops by 360 bps YoY on higher raw material, employee benefits, and finance expenses. The company appears in a screener of stocks with declining net cash flow.

  • Anupam Rasayan India falls sharply as its Q3FY24 net profit declines by 57.1% YoY to Rs 18.4 crore. Its revenue also decreases by 23.4% YoY on lower income from specialty chemicals segment. Its EBITDA margin contracts by 158 bps YoY due to higher raw material and finance expenses. The company appears in a screener of stocks with declining net profit and margins.

  • Amber Enterprises falls sharply as it reports a net loss of Rs 0.5 crore in Q3FY24 as compared to a net profit of Rs 14.2 crore in Q3FY23. The fall in net profit is due to higher raw material, inventory, employee benefits, and finance expenses. Its revenue decreases by 4.2% YoY.

  • SpiceJet is falling in trade following reports of plans to lay off around 1,400 employees (which constitutes around 15% of its total workforce) to reduce costs. The airline currently has around 9,000-9,500 employees.

  • Shares of Apeejay Surrendra Park Hotel debut on the bourses at a 20% premium to the issue price of Rs 155. The Rs 970.6 crore IPO has received bids for 59.7 times the total shares on offer.

  • Oil and Natural Gas Corp falls as its Q3FY24 net profit decreases by 9.9% YoY to Rs 10,356.4 crore on higher inventory, employee benefits, exploratory wells, and finance expenses. Its revenue declines by 0.8% YoY due to lower income from offshore exploration and onshore exploration, and refining & marketing segments.

  • Bandhan Bank falls as its Q3FY24 net profit misses estimates by 9.2% despite growing by 152.1% YoY to Rs 732.7 crore. Net interest income increases by 21% YoY, helped by the treasury, retail banking and wholesale banking segments. Its asset quality declines as net NPA margin rises by 35 bps YoY.

  • Nuvama Research predicts that the domestic market may see FPI inflows of around $1 billion in the MSCI February review. India's participation in the MSCI EM Index, currently at 17.8%, is expected to exceed 18.5% post-rejig. According to the brokerage, Jindal Stainless, NMDC, and Oberoi Realty, among others, are likely to be included in the index.

  • Easy Trip Planners ventures into the hospitality sector, with its board approving a joint venture, Jeewani Hospitality, to establish a 5-star hotel in Ayodhya. The company commits a Rs 100 crore investment in the JV.

  • SJVN falls sharply as its Q3FY24 net profit decreases by 51.6% YoY to Rs 139 crore. Its revenue declines by 1.6% YoY and EBITDA margin contracts by 112 bps YoY on higher electricity trading and finance expenses. It appears in a screener of stocks with declining RoA for the past two years.

  • Gensol Engineering is surging as its consortium with Matrix Gas & Renewables bags a PLI bid to manufacture an electrolyser plant with a 63 MW per annum capacity under the Sustainable Hydrogen Innovation & Green Hydrogen Technologies (SIGHT) programme.

  • Bharat Madan, CFO of Escorts Kubota, indicates a muted Q4 performance owing to the festive season moving to April. He notes a downturn in overseas volumes, projecting a recovery by Q2FY25. Madan also forecasts a 20-25% growth in exports for FY25.

  • Tata Power Company falls as its Q3FY24 net profit, up by 0.8% YoY to Rs 953 crore, misses estimates by 3.5%. Revenue increases by 6.2% YoY, helped by the renewables and transmission & distribution segments.

  • Minda Corp rises sharply as it bags an order to supply smart key systems to a leading Japanese two-wheeler original equipment manufacturer. These systems will be manufactured at its subsidiary, Spark Minda's plant in Pune.

  • Promoters of Mankind Pharma, Arjun Juneja, Puja Juneja and Sheetal Arora, sell 0.6%, 0.6% and 0.5% stakes in the company, respectively, in a block deal on Friday.

  • Hero MotoCorp'snet profit surges by 50.6% YoY to Rs 1,093.4 crore in Q3FY24. Revenue grows by 20.6% YoY to Rs 9,787.9 crore, helped by improved two-wheeler sales and a hike in its prices. It appears in a screenerof stocks where mutual funds have increased their shareholding in the past quarter.

Riding High:

Largecap and midcap gainers today include Zydus Lifesciences Ltd. (856.65, 6.41%), MRF Ltd. (1,43,802.75, 4.90%) and Astral Ltd. (1,938.40, 4.64%).

Downers:

Largecap and midcap losers today include NHPC Ltd. (81.00, -15.84%), General Insurance Corporation of India (346.60, -14.42%) and Bharat Forge Ltd. (1,130.95, -13.93%).

Volume Rockets

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

Top high volume gainers on BSE included Jubilant Ingrevia Ltd. (483.20, 12.11%), Godfrey Phillips India Ltd. (2,581.80, 8.73%) and Star Cement Ltd. (208.35, 6.74%).

Top high volume losers on BSE were Bharat Forge Ltd. (1,130.95, -13.93%), Amber Enterprises India Ltd. (3,696.60, -11.09%) and Anupam Rasayan India Ltd. (830.45, -9.98%).

BASF India Ltd. (3,392.85, 5.59%) was trading at 8.2 times of weekly average. Global Health Ltd. (1,346.50, 6.07%) and Cera Sanitaryware Ltd. (7,706.00, -4.14%) were trading with volumes 5.4 and 5.3 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

32 stocks took off, crossing 52 week highs, while 5 stocks tanked below their 52 week lows.

Stocks touching their year highs included - ACC Ltd. (2,636.35, 0.32%), Ambuja Cements Ltd. (563.50, -2.20%) and Apollo Hospitals Enterprise Ltd. (6,614.45, 2.75%).

Stocks making new 52 weeks lows included - Deepak Fertilisers & Petrochemicals Corporation Ltd. (500.05, -2.96%) and Vinati Organics Ltd. (1,613.40, -1.38%).

10 stocks climbed above their 200 day SMA including Jubilant Ingrevia Ltd. (483.20, 12.11%) and Jindal Worldwide Ltd. (343.20, 5.99%). 16 stocks slipped below their 200 SMA including Shree Renuka Sugars Ltd. (46.10, -6.77%) and Asahi India Glass Ltd. (520.30, -4.82%).

 
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The Baseline
11 Feb 2024
The sector winners of the FY25 Budget | Screener: stocks FIIs and MFs bought more of
By Shreesh Biradar

One expects an election year budget to focus on sops for key vote banks, rather than on long-term thinking. But Finance Minister Nirmala Sitharaman surprised everyone by going the other way.

The subsidy cuts and lower fiscal deficit emphasis in the “Viksit Bharat (Developed India)" Budget, suggests that the Finance Minister was not paying attention to the usual crowd. Sitharaman seemed to be talking to international investors rather than Indian voters, when she emphasized spending discipline.

The message was happily received: the yield on India's 10 year bond immediately dropped by 11 bps, lowering borrowing costs. A lower deficit and debt level will boost India’s credit rating outlook, and make Indian bonds a lot more attractive to foreign investors ahead of India’s inclusion in global bond indexes in June.

So June is what seems to be on the FM's mind, rather than the election months of April/May.

The government has also focused on capital expenditure, particularly on manufacturing and infrastructure, by raising the capex allotment by 11.1% to Rs 11.1 lakh crore for FY25. This budget aims for short-term utilization, a shift from the previous 2-3 year long capex plan.

Half of FY25 budget capex dedicated to railways and roads

Although the capex increase has been criticized as being too modest, especially when compared to the substantial hikes in FY22 (40%), FY23 (24%), and FY24 (37%), Sitharaman pushed back, stating that capex levels are already high, and that the current increase was generous.

Despite the upcoming elections, the government has chosen not to open its wallet to please key vote constituencies. The government seems confident about retaining power without the usual populist measures like tax breaks for the middle class, or schemes for the rural economy.  The budget instead focuses on boosting important sectors.

In this week’s Analyticks:

  • Budget impact: FY25 Budget focuses benefits on key sectors
  • Screener: MFs and FIIs buying stocks that got a Budget boost in auto parts, pharma, oil, defence and electric utilities sectors

Let’s jump in.

Government wants to get out of the red zone, with an eye on cutting deficits

This government is not a fan of debt. A focus on reducing the fiscal deficit has become a hallmark of the Modi years (except for the Covid-19 period). The government has targeted the fiscal gap by limiting budgetary spending.

For FY25, the fiscal deficit is expected to decrease to 5.1% of GDP (FY24RE at 5.8%) and drop further to 4.5% in FY26. 

India’s fiscal deficit narrows in post-Covid recovery

The budget estimates for FY25 predict an 11.7% increase in total receipts to Rs 30.8 lakh crore, with spending set to rise by 6.1% to Rs 47.6 lakh crore. A lower increase in spending will reduce the deficit.

The government has scaled back spending in areas like fertilisers (-13.1%), education & literacy (-7%), food and public distribution (-3.4%), and roads & bridges (-1.6%). Most of the budgetary cuts have targeted departments that provide subsidies, but generate low revenue. 

Traditional sectors have seen lower allocation in FY25

Emerging sectors like semiconductors, telecommunications, renewable energy, defence and EV manufacturing have been rewarded, and received significant investment. The manufacturing sector overall is expected to boost the economy and create more jobs.

Sectors like automobiles, defence, telecom, oil & gas, utilities and pharmaceuticals have seen increased allocation. 

Increased allocation to PLI scheme to benefit Auto and Auto OEMs

The government has cut FAME subsidies for electric vehicles (EVs), and instead increased allocation to the EV ecosystem, favoring EV batteries and auto OEMs. The government has been vocal about the benefits of the production-linked incentive (PLI) scheme and has increased allocation for it by Rs 3,500 crore.

To date, auto and auto component manufacturers have been allocated Rs 25,938 crore (FY23-27) under the PLI Scheme. The increased PLI spending by the government has attracted investments of around Rs 67,390 crore in the sector till December 2023.

Tata Motors jumps in week post-budget

Firms like Motherson Sumi Wiring, Exide Industries and Hero MotoCorp are  in line to benefit from the PLI Scheme. Despite delays in  shortlisting, these firms are likely to gain post-allotment. Tata Motors, for instance, received the eligibility certificate for the PLI scheme only in December 2023. This comes at a time when auto sales have been encouraging. Meanwhile, smaller firms are postponing their capex plans to  maximise their benefits from the scheme post-approval.

Defence sees higher budgetary allocation

The defence industry’s allocation has increased by 9% in the FY25 budget, with nearly 23% (Rs 40,777 crore) earmarked for aircraft and aero engines. While most of this spending will be in buying foreign-manufactured fighter aircraft, the defence-offset policy requires foreign firms to invest a portion of their deal value within India, a boost for domestic manufacturers.

Domestic firms often establish joint ventures (JVs) with these foreign counterparts to manufacture parts for these systems. These JV firms also export parts to foreign buyers.

Astra Microwave Products has formed a JV with Israel’s Rafael Defence to manufacture communication systems, and has won orders for satellite sub-systems, airborne radar, etc from DRDO, ISRO and Defence PSUs.

Astra Microwave sees sharp gains post-budget

Bharat Dynamics has also inked pacts with Thales to manufacture 70 mm laser-guided rockets in India. India is pursuing the sale of Tejas aircraft (developed by HAL) to smaller nations like Cairo, Egypt and Argentina.

Energy stocks rise with increased support for OMCs and renewable energy

The oil & gas industry has been taking advantage of  Russian sanctions and India’s strategic shifts in oil procurement. However, with the volatile global scenario and tensions in the Suez Canal, the government has increased capital support for oil marketing companies by Rs 15,000 crore. 

This move has led to significant gains for Indian Oil Corporation, Hindustan Petroleum Corporation, and Bharat Petroleum Corporation post-budget.

Oil marketing companies rise post-budget

The index of industrial production (IIP) for electricity has increased by 6.9% YoY from April to December 2023, a figure expected to double by 2045. Previous budgets increased allocations for thermal projects to ensure  24-hour electricity supply. However, many projects are still being implemented.

To meet India’s growing energy needs and fast-track energy generation, the FY25 budget has raised the allocation for renewable energy like solar from Rs 7,623 crore to Rs 12,602 crore.

This budgetary focus is set to benefit electrical utilities and allied firms. Major beneficiaries include electricity producers like Adani Green, NTPC, and Coal India; transmission and distribution firms like Power Grid Corporation of India); and finance firms like Power Finance Corporation.

Screener: Stocks bought by MFs and FIIs, that got a Budget boost in the auto parts, pharma, oil, defence and electric utilities sectors

Mankind Pharma, Inox Wind lead in MF and FII holding QoQ change

Here we take a look at companies that mutual fund and foreign institutional investors (FIIs) bought in the latest quarter. These companies are also from five industries that should benefit from the FY25 budget –auto parts & equipment, pharmaceuticals, electric utilities, refineries/petro-products and defence. 

Major stocks that appear in the screener are Mankind Pharma, Inox Wind, Lupin, KPI Green Energy, Pricol and Ami Organics.

Mankind Pharma leads with a 3.7 percentage point QoQ rise in MF holdings to 9.8% in Q3FY24.Invesco India Focused Fund Regular Growth bought a 4.2% stake in the company during the quarter. FIIs also bought a 2.6% stake in the company during the same period. 

Inox Wind comes next with a mutual fund holding increase of 2.9 percentage points to 10% in Q3FY24. The electric utilities company’s FII holding also grew by 6 percentage points during the quarter. Smallcap World Fund bought a 2.3% stake in the company over the past quarter, while East Bridge Capital Master Fund I Ltd bought a 1.5% stake.

You can find more screenershere,

Signing off this week,

The Trendlyne Team

 
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The Baseline
09 Feb 2024, 05:27PM
Five Interesting Stocks Today

1. Can Fin Homes:

This housing finance company has risen by 1.8% in the past week, following the Finance Minister’s announcement to build two crore homes under the PM Awas Yojana and introduce a scheme for middle-class home buyers. In Q3FY24, the firm’s net profit increased by 32% YoY to Rs 2,001 crore due to a 236 bps YoY decrease in operating margin to 14.7%. The transition to centralized disbursement in October 2023, prompted by fraud detection at its Ambala Branch in Haryana, led to a 23% YoY fall in Q3 disbursements to Rs 1,879 crore and moderate AUM growth of 13% YoY to Rs 34,053 crore.

The outlook for FY25 is positivefor housing financiers due to potential rate cuts and strong GDP growth. The management aims to double the loan book size (currently Rs 34,000 crore) over the next four years, expecting monthly disbursements to shoot up to Rs 1,000 crore by Q4FY25 from Rs 700 crore currently.

The firm’s Net Interest Income (NII) grew by 30.6% YoY to Rs 329 crore, and its Net Interest Margin (NIM) expanded 30bps YoY to 3.9% in Q3. The gross NPA ratio worsened by 31bps YoY to 0.91% in Q3 due to one-time loan restructuring of around Rs 90 crore. However, asset quality is expected to improve by FY24, thanks to the financier’s low-risk customer profile (72% salaried professionals and 26% self-employed).

Axis Securities foresees high margins in the near term, as they expect reduced loan refinancing rates from the National Housing Bank. A recent credit rating upgrade by ICRA is also expected to benefit the firm's cost of funds.

2. Bharat Petroleum Corp: 

This refineries/petro-products stock has surged by 20.8% over the past week, touching its all-time high of Rs 635.3 per share on Thursday. This rise comes after the company posted a 82.1% YoY growth in net profit to Rs 3,181.4 crore for Q3FY24 on January 29. Despite a 2.5% YoY decrease in revenue to Rs 1.3 lakh crore, it beat Trendlyne’s Forecaster estimates by 14.3%. Its net profit also exceeded Forecaster estimates by 5.5%. The company shows up in a screener of Trendlyne’s high-return, technically strong value stocks.

The decline in revenue is on account of lower demand, despite a 5% YoY increase in crude oil production volume to 9.9 MMT during the quarter. Its EBITDA margin has expanded by 170 bps YoY to 5.1%, owing to lower raw materials and finance costs. Brent crude prices fell by 10.4% in 2023, helping margin expansion and boosting the company’s stock prices. The company has given a dividend yield of 5.5% over the past year. 

The government has allotted Rs 15,000 crore to oil marketing companies in the FY25budget. The oil refiner and marketer has also planned a capex of Rs 1.5 lakh crore for the next five years. G Krishnakumar, the Chairman and Managing Director, said, “Of this Rs 1.5 lakh crore, we have earmarked Rs 75,000 crore for refineries and Petchem ventures, about Rs 32,000 crore in the upstream business (oil exploration and production), and Rs 25,000 crore each in gas and marketing infrastructures.”

Post-results, Yes Securities maintains its ‘Buy’ rating on the stock with a target price of Rs 620 per share. The brokerage is optimistic about BPCL's strategic debt reduction, its targeted capex and enhanced refining efficiency. 

3. Trent: 

This retailing company has risen by 23% in the past three days, touching an all-time high of Rs 3,937.4 on Thursday following strong Q3 results. Trent’s net profit more than doubled by 152.3% YoY to Rs 374.4 crore, beating Trendlyne’s Forecaster estimates by 41.7%. As a result, it features in a screener of stocks with consistently increasing profits for the past three quarters.

Revenue grew by 50.5% YoY, led by store expansion and increased footfall. During the quarter, it opened five Westside stores and 50 Zudio stores, taking the total store count to 227 and 460 respectively. 

The company’s Star business (which contributes around 19% to total revenue) reported a 26% YoY revenue increase, led by strong LFL (like-for-like) growth of 24% and volume growth.  Noel N Tata, Chairman of the company, said, “Star business is attracting more customers, becoming an essential growth driver.”

Additionally, the share of Trent’s own brand in Star's sales increased from 57% in Q3FY23 to 69%, driving margin growth. Trent’s EBITDA margin expanded by 336 bps to 18.8% during the quarter.

After the company’s earnings announcement, Motilal Oswal reiterates its ‘Buy’ rating on Trent with an upgraded target price of Rs 4,200. The brokerage is optimistic about the company’s long-term growth prospects, driven by LFL growth, retail expansion, and scale-up within Zudio.

4. Cipla:

This pharma company hit its all-time high of Rs 1,457.7 on Thursday, with a 13.2% increase in the past month. This rise was driven by a 31.8% YoY growth in its Q3FY24 net profit to Rs 1,055.9 crore. Cipla’s  revenue also increased by 14.6% YoY, aligning with Trendlyne Forecaster estimates. The company appears in a screener for stocks with improving RoCE over the past two years. 

Cipla’s EBITDA margin improved by 225 bps to 26.5%, led by a better product mix, price hikes in the US, and easing of cost inflation. The North American market led this growth, reporting a 19.8% YoY increase in revenue on the back of high volume in Lanreotide, which holds a 20% market share in the US. The drug is used to treat patients with endocrine and gastric tumors. Lanreotide’s US sales, around $470 million, are projected to grow at a CAGR of 4.1% by 2032.

Despite price hikes by Indian manufacturers in the US, Indian drugs remain cheaper than their US counterparts, leading to higher purchases by US distributors. Also, drug shortages in segments like asthma, cancer and chronic diseases have seen higher price realisation. The company’s 9MFY24 EBITDA margin stands at 25.4%. Chief Financial Officer Ashish Adukia said, “FY24 EBITDA margin is expected to be higher than the earlier guidance of 23-24%.” 

Going forward, the management plans to prioritize the Indian market, which accounts for 44% of its total revenue, by strengthening its portfolio offerings. Meanwhile, the North American vertical will focus on executing the existing portfolio. According to the management, “Research and development spending is largely directed toward the US market and could represent around 6% of revenue in the near to medium term.”

BoB Capital Markets retains its ‘Buy’ call on Cipla. It expects strong margins and a healthy profit CAGR of 20% over FY24-FY26 on the back of new launches in North America, a recovery in Africa and the API business, and ongoing momentum in the Indian market.

5. Varun Beverages:

This non-alcoholic beverage firm rose by 3.4% on Tuesday after its Q4CY23 earnings announcement, where net profit surged by 76.5% YoY to Rs 132 crore on increased sales volumes. The company’s EBITDA margin also improved by 180 bps YoY due to lower raw material expenses. The company appears in a screener of stocks with improving return on equity over the past two years. According to Trendlyne’s Technicals, the stock has risen by 7.9% in the past month, outperforming the food and beverage sector, which fell 3%. 

In Q4CY23, revenue increased by 21% YoY to Rs 2,670 crore, driven by an 18% YoY growth in volume and a 2% YoY hike in realization per case to Rs 171. The volume growth in soft drinks and juices was at 25% and 14% YoY, respectively. However, net debt increased by 38.7% YoY to  Rs 4,730 crore by the end of Q4CY23. 

The management anticipates robust growth in Gatorade (sports drink), juice, and value-added dairy segments, with plans to increase production capacity by 200%. The energy drink market in India, led by Sting, now accounts for 15% of the company's volume mix, well above the industry average of 6%. The India business saw a 13% YoY increase in sales volumes, thanks to an improved sales mix. 

International markets, on the other hand, had a revenue growth of 16% YoY in Q4CY23, benefitting from better realization. The company plans to boost its capex by 71.4% to Rs 3,600 crore in 2024 and expand the number of outlets in India by 14.3% to 40 lakh by Q4CY24. 

Motilal Oswal foresees a 23% CAGR in revenue, EBITDA, and PAT until 2025, driven by increased market penetration in India and Africa, higher product acceptance, ongoing capacity and distribution expansion, rural refrigeration growth, and scaling up of international operations. The brokerage maintains its ‘Buy’ rating on the stock.

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
09 Feb 2024, 03:55PM
Market closes higher, Alkem Laboratories' Q3FY24 net profit rises by 30.8% YoY to Rs 595 crore
By Trendlyne Analysis

Nifty 50closed at 21,782.50 (64.6, 0.3%), BSE Sensexclosed at 71,595.49 (167.1, 0.2%) while the broader Nifty 500closed at 19,961.50 (-26.1, -0.1%). Market breadth is overwhelmingly negative. Of the 2,013 stocks traded today, 575 were on the uptick, and 1,414 were down.

Indian indices extended the gains from the afternoon session and closed in the green. The volatility index, Nifty VIX, dropped by 2.4% and closed at 15.5 points. Life Insurance Corp of India’s Q3FY24 net profit grows by 49.1% YoY to Rs 9,444.4 crore. Its net premium income also increases by 4.7% YoY and the value of new business added improves by 14% YoY.

Nifty Midcap 100 and Nifty Smallcap 100 closed lower with the benchmark index closing in the green. Nifty FMCG and Nifty PSU Bank 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%. 

Most European indices trade higher except for France’s CAC 40 trading in the red. US indices futures trade flat, indicating a cautious start. US equity mutual funds saw an $11.7 billion outflow in the past week, as Fed Chair Jerome Powell indicated that markets need to wait further for rate cuts.

  • The Ramco Cements sees a long buildup in its February 29 future series as its open interest rises 46.3% with a put-call ratio of 0.4.

  • Zydus Lifesciences’ board approves the buyback of equity shares worth Rs 6,000 crore or 0.59% of outstanding shares at Rs 1,005 each, implying a premium of around 25%.

  • Alkem Laboratories' Q3FY24 net profit rises by 30.8% YoY to Rs 595 crore on lower inventory and finance expenses. Its revenue increases by 9.3% YoY on growing income from international markets. It appears in a screener of stocks with high TTM EPS growth.

  • VP Nandakumar, MD & CEO of Manappuram Finance, projects non-gold AUM growth to exceed 30%, with overall AUM expected between 18% and 20%. In Q3FY24, gold loans comprised 51.4% of its portfolio. He also notes an improvement in NIMs to 15.4%, expected to be maintained in the coming quarters.

  • Rashi Peripherals' Rs 600 crore IPO gets bids for 26.3X the available 1.4 crore shares on offer on the third day of bidding. The retail investor quota gets bids for 8.2X the available 71.2 lakh shares on offer.

  • Jana Small Finance Bank's Rs 570 crore IPO gets bids for 9.1X the available 1 crore shares on offer on the third day of bidding. The retail investor quota gets bids for 1.6X the available 49.1 lakh shares on offer.

  • Capital Small Finance Bank's Rs 523.1 crore IPO gets bids for 2.1X the available 81.5 lakh shares on offer on the third day of bidding. The retail investor quota gets bids for 2.1X the available 40.9 lakh shares on offer.

  • India’s domestic oil demand rises 8.3% YoY in January to 20 million tonnes. Petrol and diesel consumption increase by 9.6% YoY and 3.5% YoY, respectively, over the same period.

  • Foreign institutional investors withdraw Rs 1,082.7 crore from the equity market over the past week, according to Trendlyne's FII dashboard. Index options witness the highest outflow of Rs 82,584.6 crore from foreign investors. Meanwhile, mutual funds are net buyers in the equity market, injecting Rs 570.8 crore during the same period.

  • MRFfalls as its Q3FY24 net profit misses Forecaster estimatesby 4.1% despite growing by 191.5% YoY to Rs 509.7 crore, helped by lower raw material costs. Revenue also rises by 9.2% YoY to Rs 6,162.5 crore. It features in a screenerof stocks with declining net cash flow.

  • JK Lakshmi Cementrises to an all-time high of Rs 999.9 as its Q3FY24 net profit grows by 88.1% YoY to Rs 143.7 crore. Its revenue increases by 9.1% YoY and EBITDA margin improves by 600 bps YoY due to lower employee benefits and power & fuel expenses.

  • J Kumar Infraprojects' 50% JV with NCC, J Kumar-NCC (JV), bags a Rs 4,548.1 crore order from the Brihanmumbai Municipal Corp (BMC) for constructing a coastal road from Bangur Nagar to Mindspace Malad interchange, including an elevated road.

  • Pramod Patwari, CFO of Balrampur Chini Mills, reports an uptick in cane supply, with distilleries running at full capacity in Q3. He anticipates a potential reduction in ethanol output next quarter but expects a 10-11% revenue increase in FY24. Patwari believes that higher sap costs will be offset by volume growth and improved recovery.

  • Patanjali Foods falls as its Q3FY24 net profit declines by 19.6% YoY to Rs 216.5 crore due to higher inventory, employee benefits, and finance expenses. Its revenue decreases by 0.1% YoY, impacted by the edible oils segment. It appears in a screener of stocks with declining net profit and margins.

  • Max Healthcare hits a new 52-week high of Rs 883.9 as its board announces the acquisition of a 100% stake in Alexis Multi-Specialty Hospital for Rs 412 crore. The deal will strengthen Max Healthcare’s presence in western India.

  • Zomato rises to a new 52-week high of Rs 151.4 as its Q3FY24 net profit grows by 139.8% YoY to Rs 138 crore due to lower employee benefit, finance, and advertisement expenses. Its revenue increases by 65.3% YoY, helped by growing income from the food delivery, hyperpure supplies, and quick commerce segments.

  • Rajendra Gogri, CMD of Aarti Industries, says FY24 performance has been impacted by the global slowdown but raises FY25 EBITDA guidance to Rs 1,450-1,700 crore. He confirms the commissioning of new plants in FY25 is on schedule, expecting sizable export growth in the coming quarters.

  • AstraZeneca Pharma India falls as its profit drops 46.1% YoY to Rs 15.8 crore, while its revenue rises 22.7% YoY. The dip in profit is due to increasing inventory costs. The company appears in a screener for stocks with improving book value per share for the past two years.

  • Life Insurance Corp of India rises to an all-time high of Rs 1,175 as its Q3FY24 net profit grows by 49.1% YoY to Rs 9,444.4 crore. Its net premium income also increases by 4.7% YoY and the value of new business added improves by 14% YoY. It appears in a screener of stocks with strong annual EPS growth.

  • Entero Healthcare Solutionsraises Rs 716.4 crore from anchor investors ahead of its IPO by allotting 56.9 lakh shares at Rs 1,258 each. Investors include the Government of Singapore, Smallcal World Fund Inc, Morgan Stanley, Goldman Sachs, Copthall Mauritius, Jupiter India Fund, SBI General Insurance, and Magna Umbrella Fund.

  • Amit Syngle, CEO of Asian Paints says, the industrial paints segment’s contribution to total sales will likely grow to 7-8% from the current 4-5%. He adds that the company will maintain margins in the range of 18-20%. Syngle also expects the company’s revenue to reach Rs 1 lakh crore in the next decade.

  • Rail Vikas Nigam falls sharply as its Q3FY24 net profit declines by 6.2% YoY to Rs 358.6 crore. Its revenue decreases by 6.4% YoY and EBITDA margin contracts by 18 bps on rising employee benefit expenses.

  • Bharat Heavy Electricals bags an order worth Rs 5,500 crore from Haryana Power Generation Corp to set up an 800 MW ultra-supercritical expansion unit at Deen Bandhu Chhotu Ram Thermal Power Plant in Haryana. As per the order, the company will supply the equipment, and set up and commission the plant.

  • Ashish Kacholiabuys a 1.7% stake in Megatherm Inductionfor approx Rs 7.1 crore in a bulk deal on Thursday.

  • Torrent Powerfalls sharply as its net profit plunges by 47.4% YoY to Rs 359.8 crore in Q3FY24 due to higher electrical energy and fuel costs. Revenue falls by 1.2% YoY, impacted by the power generation segment. It appears in a screenerof stocks with declining net cash flow.

Riding High:

Largecap and midcap gainers today include Grasim Industries Ltd. (2,168.50, 5.41%), Zee Entertainment Enterprises Ltd. (203.25, 5.15%) and Vodafone Idea Ltd. (15.50, 4.73%).

Downers:

Largecap and midcap losers today include Power Finance Corporation Ltd. (428.85, -8.47%), General Insurance Corporation of India (405.00, -8.18%) and One97 Communications Ltd. (419.85, -6.00%).

Crowd Puller Stocks

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

Top high volume gainers on BSE included Prism Johnson Ltd. (183.00, 7.58%), Welspun Living Ltd. (157.50, 6.49%) and Birla Corporation Ltd. (1,696.15, 6.49%).

Top high volume losers on BSE were AstraZeneca Pharma India Ltd. (5,722.35, -12.90%), Power Finance Corporation Ltd. (428.85, -8.47%) and Ratnamani Metals & Tubes Ltd. (3,187.45, -7.82%).

JK Lakshmi Cement Ltd. (935.95, 2.03%) was trading at 22.6 times of weekly average. The Ramco Cements Ltd. (901.75, -7.45%) and Escorts Kubota Ltd. (2,807.25, -4.28%) were trading with volumes 13.9 and 10.1 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

38 stocks took off, crossing 52 week highs, while 4 stocks hit their 52 week lows.

Stocks touching their year highs included - ACC Ltd. (2,628.05, 4.67%), Apollo Hospitals Enterprise Ltd. (6,437.35, 3.31%) and Bajaj Holdings & Investment Ltd. (8,608.00, -0.76%).

Stocks making new 52 weeks lows included - UPL Ltd. (457.95, -1.48%) and Vinati Organics Ltd. (1,635.90, -2.27%).

9 stocks climbed above their 200 day SMA including Clean Science & Technology Ltd. (1,405.00, 2.40%) and RHI Magnesita India Ltd. (702.00, 1.83%). 21 stocks slipped below their 200 SMA including The Ramco Cements Ltd. (901.75, -7.45%) and Sundram Fasteners Ltd. (1,128.60, -5.10%).

 
Trendlyne Marketwatch
Trendlyne Marketwatch
08 Feb 2024, 03:45PM
Market closes lower, BEML's net profit falls by 27.3% YoY to Rs 48.2 crore in Q3
By Trendlyne Analysis

Nifty 50 closed at 21,717.95 (-212.6, -1.0%), BSE Sensex closed at 71,567.84 (-584.2, -0.8%) while the broader Nifty 500 closed at 19,987.55 (-122, -0.6%), of the 2,018 stocks traded today, 762 showed gains, and 1,240 showed losses.

Indian indices extended their losses from the afternoon session and closed in the red. The Indian volatility index, Nifty VIX, rose 2.1% and closed at 15.8 points. The Monetary Policy Committee (MPC) kept the policy repo rate unchanged at 6.5% after its meeting. However, RBI Governor Shaktikanta Das said that the RBI is prepared to undertake appropriate policy actions, as warranted.

Nifty Smallcap 100 closed in the red, while the Nifty Midcap 100 closed flat. Nifty Media and Nifty Energy closed higher than their Wednesday levels.  According to Trendlyne’s sector dashboard, Retailing emerged as the top-performing sector of the day, with a rise of 1.7%.

Major Asian indices closed in the green, except for India’s BSE Sensex and Hong Kong’s Hang Seng closing in the red. Japan's Nikkei 225 index closed at its highest level in 34 years after a high-ranking Bank of Japan (BOJ) official signaled that any policy tightening would be gradual. European indices traded in the green, while the US index futures traded flat. Brent crude oil futures traded flat after closing in the green for three straight days.

  • Money flow index (MFI) indicates that stocks like Indian Overseas Bank, Cummins India, EIH and Torrent Power are in the overbought zone.

  • BEML falls as its Q3FY24 net profit decreases by 27.3% YoY to Rs 48.2 crore. However, its revenue rises by 0.9% YoY and EBITDA margins contract by 328 bps YoY on higher raw material expenses.

  • Power Grid Corp rises as its Q3FY24 net profit grows by 10.5% YoY to Rs 4,028.2 crore. Its revenue increases by 2.5% YoY, helped by rising income from the transmission segment. The company's EBITDA margin expands by 57 bps YoY due to lower finance expenses.

  • Star Health and Allied Insurance Co. declines more than 2% as reports suggest that 10.5 lakh shares (0.2% equity), amounting to Rs 59.8 crore, change hands in a large trade.

  • Rashi Peripherals' Rs 600 crore IPO gets bids for 2.4X the available 1.4 crore shares on offer on the second day of bidding. The retail investor quota gets bids for 2.8X the available 71.2 lakh shares on offer.

  • Jana Small Finance Bank's Rs 570 crore IPO gets bids for 1.4X the available 1 crore shares on offer on the second day of bidding. The retail investor quota gets bids for 1.9X the available 49.1 lakh shares on offer.

  • Capital Small Finance Bank's Rs 523.1 crore IPO gets bids for 1X the available 81.5 lakh shares on offer on the second day of bidding. The retail investor quota gets bids for 1.1X the available 40.9 lakh shares on offer.

  • Mutual Funds' net equity inflow surges by 28% MoM to Rs 21,749 crore in January, according to data released by the Association of Mutual Funds in India (AMFI). Total AUM stands at Rs 52.7 lakh crore during the same period.

  • PSU bank stocks like Indian Bank, State Bank of India, Bank of Indiaand Canara Banksurge more than 3% in trade. The broader Nifty PSU Bankindex also rise over 2%, helping it touch its all-time high of 6,931.8.

  • Cummins Indiarises to an all-time high of Rs 2,648.8 as its Q3FY24 net profit grows by 20.6% YoY to Rs 498.9 crore. Its revenue increases by 16.3% YoY, helped by rising income from the engines segment. Its EBITDA margin also improves by 281 bps YoY on lower raw material and inventory expenses.

  • RBI Governor Shaktikanta Das says that the regulatory action against One97 Communications(Paytm) resulted from the company's continued non-compliance with demands for corrective actions in its payment bank business. Previously, the RBI had barred Paytm's payment bank from conducting operations starting after February 29.

  • TCS hits a new 52-week high of Rs 4,158 following its multi-year partnership with Enento Group to modernize Enento's IT infrastructure and digital workplace.

  • According to a report from the International Energy Agency, India's oil demand is expected to increase by 1.2 million barrels per day by 2030, accounting for about one-third of the global demand. As of 2023, the country has become the world's second-largest net importer of crude oil.

  • Apollo Tyres rises to its all-time high of Rs 557.9 as its net profit grows by 78.1% YoY to Rs 496.6 crore in Q3FY24 on the back of lower raw material and finance costs. Revenue increases by 2.7% YoY, driven by the APMEA and Europe segments. It shows up in a screener of stocks with improving return on equity (RoE) over the past two years.

  • Inox Wind hits a new 52-week high of Rs 578.8 following an agreement with CESC to install and supply equipment for 1,500 MW of wind capacity over 3-4 years.

  • Sobha is falling sharply as its net profit declines by 52.6% YoY to Rs 15.1 crore in Q3FY24 due to higher raw material and employee benefit expenses. Revenue falls by 21.1% YoY, impacted by the real estate and contractual & manufacturing segments. It appears in a screener of stocks with declining net profit and profit margin (YoY).

  • The RBI raises its projection for India's GDP growth to 7.3% in FY24 and sets FY25 growth at 7%. RBI's MPC retains its FY24 CPI inflation forecast at 5.4%, and projects 4.5% for FY25.

  • Borosil Renewablesfalls as it reports a net loss of Rs 15.6 crore in Q3FY24, as against a net profit of Rs 5.2 crore in Q3FY23 due to higher raw material and employee benefit expenses. Revenue rises 30.7% YoY to Rs 333.8 crore. The company appears in a screenerfor stocks with zero promoter pledge.

  • General Insurance Corpof India rises to an all-time high of Rs 460.9 as its Q3FY24 net profit grows by 34.9% YoY to Rs 1,518 crore due to lower employee benefit expenses. However, its gross premium income falls by 13.1% YoY, impacted by declines in fire, agriculture and marine insurance segments.

  • Tata Consumer Products' Q3FY24 net profit falls 20.7% YoY to Rs 278.9 crore, while revenue rises 9.7% YoY. Profit falls due to higher costs from acquisitions, past service, and business restructuring. The company appears in a screener for stocks with low debt.

  • The RBI decides to keep the policy repo rate unchanged at 6.5% during the Monetary Policy Committee meeting.

  • Ashoka Buildcon plunges sharply as its net profit declines by 21.2% YoY to Rs 107.3 crore in Q3FY24 due to increased expenses for raw materials, construction, employee benefits, and finance. Revenue grows by 38.4% YoY, driven by the construction & contract segment. Its order book also declines by 18.4% YoY to Rs 13,167 crore.

  • KEC International rises as it bags orders worth Rs 1,175 crore for its transmission & distribution, civil and solar businesses from Indian and American clients. The orders involve a 765 kV transmission for Power Grid Corp, transmission hardware supply to American clients, and construction of a residential building and solar power plant in India.

  • Artisan International Value Fund sells a 1.2% stake in Indus Towers for approx Rs 717.3 crore in a bulk deal on Wednesday.

  • Lupin rises as its Q3FY24 net profit grows 4x to Rs 613.1 crore on lower inventory and finance expenses. Its revenue increases by 20.4% YoY, helped by growing income from North America, India, Europe, the Middle-East and African regions. It appears in a screener of stocks with high TTM EPS growth.

Riding High:

Largecap and midcap gainers today include General Insurance Corporation of India (441.10, 9.20%), Cummins India Ltd. (2,585.25, 7.71%) and Trent Ltd. (3,841.95, 6.50%).

Downers:

Largecap and midcap losers today include One97 Communications Ltd. (446.65, -9.99%), UCO Bank (63.30, -7.46%) and Indian Overseas Bank (74.00, -7.09%).

Crowd Puller Stocks

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

Top high volume gainers on BSE included The New India Assurance Company Ltd. (304.40, 11.56%), General Insurance Corporation of India (441.10, 9.20%) and Bharat Dynamics Ltd. (1,912.65, 9.00%).

Top high volume losers on BSE were ITC Ltd. (414.55, -3.99%), Manappuram Finance Ltd. (182.80, -3.87%) and Thermax Ltd. (3,208.75, -2.33%).

Just Dial Ltd. (893.60, 7.95%) was trading at 22.2 times of weekly average. Zydus Wellness Ltd. (1,636.95, 0.51%) and Cummins India Ltd. (2,585.25, 7.71%) were trading with volumes 7.8 and 7.5 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

77 stocks took off, crossing 52 week highs, while 2 stocks tanked below their 52 week lows.

Stocks touching their year highs included - Abbott India Ltd. (28,278.00, -1.56%), Apollo Tyres Ltd. (538.80, -2.43%) and Bajaj Holdings & Investment Ltd. (8,658.00, 0.54%).

Stocks making new 52 weeks lows included - UPL Ltd. (464.85, -2.71%) and Vinati Organics Ltd. (1,674.00, -0.45%).

5 stocks climbed above their 200 day SMA including EPL Ltd. (196.15, 2.06%) and Indigo Paints Ltd. (1,442.30, 0.41%). 18 stocks slipped below their 200 SMA including Timken India Ltd. (2,961.50, -3.61%) and Dalmia Bharat Ltd. (2,100.35, -3.25%).

 
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The Baseline
08 Feb 2024, 01:55PM
Which stocks did superstar investors sell in Q3FY24?
By Melissa Koshy

Tracking changes in the portfolios of superstar investors offers valuable insights into market trends and strategies. The investment choices of these seasoned investors reflect their bullish or bearish stances on various stocks and sectors, and gives other investors a roadmap on potential investing strategies. 

All superstar investors see their net worth rise in Q3FY24

Previously, we looked at the key superstar buys in Q3FY24. Now, let's analyse their sells. 

Biggest sells by superstars in Q3FY24

RARE Enterprises reduces its stake in Nazara Technologies

Rakesh Jhunjhunwala’s portfolio, currently managed by his wife Rekha Jhunjhunwala and investment firm Rare Enterprises, reduced stakes in two companies in Q3FY24. The portfolio’s net worth grew by around 22% QoQ to Rs 48,186.3 crore during the quarter.

In the October-December quarter, the late big bull’s portfolio cut a 1% stake in the software & services company, Nazara Technologies. This sale reduced the portfolio’s holding to 9%, down from a steady 10% held since Q1FY23. Over the past quarter, its share price has risen by 8.4%.  

Jhunjhunwala’s portfolio pares stakes in two companies

Rare Enterprises also trimmed 0.1% from its stake in banking major Federal Bank, taking its holding to 3%. This is the second consecutive quarter where it has reduced its stake in the bank. Federal Bank has seen a 3.5% increase in its stock price over the past quarter. 

Sunil Singhania pares stake in a micro-cap company to below 1%

Sunil Singhania’s Abakkus Fund saw its net worth rise by 19.2% QoQ to Rs 2,838.9 crore in Q3FY24. The fund reduced its stake in Rajshree Polypack to below 1% during the quarter, after holding a 4.3% stake in the containers and packaging company in Q2FY24. Rajshree’s stock price rose 50.3% in the past year.

Singhania trims his stake in Rajshree Polypack to below 1%

The fund also trimmed its stakes in Ion Exchange (India) and EMS (prices increased by 78.9% and 174.5% in the past year) by 0.64% and 0.36% It now holds 2.14% and 1.35% stakes in the utilities companies. It also sold a 0.3% stake in AGI Greenpac and now holds 1.1% of the diversified consumer services company. 

Abakkus cut 0.1% each in Ethos (specialty retail company), Technocraft Industries (India) (iron and steel products manufacturer) and Siyaram Silk Mills (textile company) to now hold 1.2%, 2.7% and 1.8% respectively. It also cut a minor stake in Sarda Energy & Minerals and IIFL Securities, now holding 2.2% in the iron and steel products manufacturer and 3.3% in the capital markets company.

Ashish Kacholia scales back stakes in three companies to below 1%

Kacholia sells a 1.54%% stake in ADF Foods

Ashish Kacholia’s net worth rose by 8.8% QoQ to Rs 2,764.2 crore in Q3FY24. He reduced his stakes in SJS Enterprises (auto parts & equipment company) and TARC (realty company) to below 1% from previous stakes of 3.2% and 2.2%  in Q2FY24. SJS Enterprises and TARC rose by 32.5% and 308.1% over the past year. He also cut his stake in IT training services company NIIT to below 1% from 1.9% in Q2. NIIT’s stock price fell by 59.4% in the past year. 

The ace investor also sold 1.54% of his stake in ADF Foods, leaving him with a 1.21% holding in the packaged foods company. He cut his stake in Best Agrolife, an agrochemicals company, to 1.4% by selling a 0.9% stake.

Vijay Kedia cuts stake in a hotels company to below 1% 

Vijay Kedia’s net worth increased by 6.3% QoQ to Rs 1,475.6 crore in Q3FY24. During this period, he slashed his stake in Mahindra Holidays & Resorts India to below 1%, down from a 1% stake held in the hotels company in Q2FY24. The company's stock price rose by 62.9% in the past year.

Kedia cuts a 0.2% stake in Talbros Automotive Components

Kedia also sold a 0.2% stake in Talbros Automotive Components during Q3FY24. He now holds a 1% stake in the auto parts manufacturer. The company rose by almost 3x in the past year. He also cut his stake in Elecon Engineering Company to 1.5% by selling a 0.1% share of the industrial machinery company. 

Mohnish Pabrai sells stake in a petrochemicals company 

Pabrai cuts a 2.6% stake in Rain Industries

Mohnish Pabrai’s net worth fell by 0.5% QoQ to Rs 1,358.7 crore in Q3FY24. During the quarter, he reduced his holding in Rain Industries to 4.4% by selling a 2.6% stake. This marks the second consecutive quarter of reduction in this petrochemicals company, whose stock price has risen by 13.5% over the past year.

Dolly Khanna reduces stakes in multiple companies

Dolly Khanna pares stakes in multiple companies

Dolly Khanna actively reduced her holdings in Q3FY24, trimming her stake in 11 companies, including four where her stake fell below 1%. Despite these sales, her net worth increased by 17.5% QoQ to Rs 422.9 crore during the quarter.

Khanna cut her stake in textiles, apparels & accessories firm Monte Carlo Fashions to below 1% from a 1.9% stake in Q2. Its stock price has fallen by 13.5% over the past quarter. She also reduced her stakes in textile company Nitin Spinners (a 1.2% stake held in Q2), breweries firm Som Distilleries & Breweries (a 1.1% stake in Q2), and auto tyres & rubber products manufacturer Tinna Rubber and Infrastructure (a 1.3% stake held in Q2) to below 1%. 

Further adjustments were made to Pondy Oxides & Chemicals, a non-ferrous metals manufacturer, reducing her stake by 0.63% to 2.44%. Over the past year, this small-cap company has gained 155.2%. 

The investor trimmed her stake by 0.4% in packaged foods firm Simran Farms, taking her holding to 1%. Khanna also reduced her stake in an oil & gas stock Chennai Petroleum Corp by 0.3%, bringing her holding to 1.3%. 

During the October-December quarter, Khanna brought down her stake in auto parts & equipment manufacturer Talbros Automotive Components by 0.23% to 1.34%. She also slightly reduced her holding in an electrical equipment firm Salzer Electronics (now owns 1%) and plastic products firm Prakash Pipes (now holds 3.1%). 

Porinju V Veliyath adjusts holdings in key sectors

Porinju cuts a 0.58% stake in Duroply Industries

Porinju V Veliyath sold his stakes in three companies during the quarter, with holdings in two dropping below 1%. His net worth rose by 8.2% QoQ to Rs 225.9 crore in Q3. 

He trimmed his stake in forest products manufacturer Duroply Industries by 0.58% to 6.45%. The company’s share price has risen by 62.8% over the past year. 

During the quarter, Porinju reduced his stakes in Shalimar Paints and Singer India to below 1%. He has consistently held a 1.6% stake in furnishing paints manufacturer Shalimar Paints since Q4FY22. Meanwhile, he added consumer durables firm Singer India to his portfolio in Q2FY24, but he reduced his stake to below 1% in Q3. 

 
Trendlyne Marketwatch
Trendlyne Marketwatch
07 Feb 2024
Market closes flat, Trent's net profit rises 124.2% YoY to Rs 374.4 crore in Q3
By Trendlyne Analysis

Nifty 50 closed at 21,930.50 (1.1, 0.0%), BSE Sensex closed at 72,210.22 (24.1, 0.0%) while the broader Nifty 500 closed at 20,109.55 (75.8, 0.4%), of the 2,026 stocks traded today, 1,129 were gainers and 863 were losers.

Indian indices recovered from the day’s low and closed flat. The volatility index, Nifty VIX, dropped by 1.8% and closed at 15.5 points. Brigade Enterprises Q3FY24 net profit grows by 29.2% YoY to Rs 73.5 crore due to lower sub-contractor and inventory expenses. Its revenue increased by 40.7% YoY, helped by rising income from the real estate, hospitality and leasing segments.

Nifty Smallcap 100 and Nifty Midcap 100 closed higher with the benchmark index closing flat. Nifty Media and Nifty PSU Bank closed higher than Tuesday’s closing level. According to Trendlyne’s sector dashboard, retailing emerged as the top-performing sector of the day, with a rise of over 5%.

Most European indices trade flat except for Italy’s FTSE MIB trading in the green. US indices futures trade flat, indicating a cautious start. German industrial production in December contracted by 1.6% MoM against estimates of a 0.4% decline.

  • Relative strength index (RSI) indicates that stocks like Indian Overseas Bank, EIH, Indian Oil Corp and Bharat Petroleum Corp are in the overbought zone.

  • Sanghvi Movers rises sharply to an all-time high of Rs 1,017.9 as its Q3FY24 net profit grows by 76.1% YoY to Rs 61.3 crore. Its revenue increases by 34.1% YoY and EBITDA margin expands by 640 bps YoY due to lower employee benefit expenses.

  • Trent rises sharply to an all-time high of Rs 3,438 as its Q3FY24 net profit grows by 124.2% YoY to Rs 374.4 crore. Its revenue increases by 50.5% YoY, helped by Star business, beauty & personal care, and clothing segments. It appears in a screener of stocks with improving book value per share.

  • HDFC Securities maintains its 'Buy' rating on HG Infra Engineering with an upgraded target price of Rs 1,338. This indicates a potential upside of 42.7%. The brokerage believes that the pick-up in project execution and a healthy balance sheet will drive the company's growth, projecting a 14.5% revenue CAGR for FY23-26.

  • Rashi Peripherals' Rs 600 crore IPO gets bids for 0.6X the available 1.4 crore shares on offer on the first day of bidding. The retail investor quota gets bids for 0.9X the available 71.2 lakh shares on offer.

  • Jana Small Finance Bank's Rs 570 crore IPO gets bids for 0.5X the available 1 crore shares on offer on the first day of bidding. The retail investor quota gets bids for 0.9X the available 49.1 lakh shares on offer.

  • Dhanuka Agritech signs a 'Letter of Intent' with Spain's Kimitec, forming a joint venture focused on the research and promotion of biological products to enhance crop health.

  • Capital Small Finance Bank's Rs 523.1 crore IPO gets bids for 0.3X the available 81.5 lakh shares on offer on the first day of bidding. The retail investor quota gets bids for 0.5X the available 40.9 lakh shares on offer.

  • Apeejay Surrendra Park Hotels' Rs 970.6 crore IPO gets bids for 20.4X the available 3.5 crore shares on offer on the third day of bidding. The retail investor quota gets bids for 23.3X the available 61.9 lakh shares on offer.

  • TRF rises sharply to hit a new 52-week high of Rs 327.7 following its board's decision to cancel the merger with Tata Steel, citing business improvement since the 2022 merger agreement.

  • Reports suggest that 3.6 crore shares (1.3% equity) of Indus Towers, amounting to Rs 770 crore, change hands in a large trade.

  • Brigade Enterprisesrises to an all-time high of Rs 1,108 as its Q3FY24 net profit grows by 29.2% YoY to Rs 73.5 crore due to lower sub-contractor and inventory expenses. Its revenue increases by 40.7% YoY, helped by rising income from the real estate, hospitality and leasing segments.

  • Intellect Design Arenahits a new 52-week high of Rs 994.9 as it bags an order from Turkey’s VakifBank International to transform its banking operations. This marks Intellect's second European banking transformation deal in the past month.

  • V-Mart Retail rises as its Q3FY24 net profit grows by 41.4% YoY to Rs 28.2 crore due to lower inventory expenses. Its revenue increases by 16% YoY, helped by growing income from retail trade and digital marketplace businesses. It appears in a screener of stocks with growing net profit and margins.

  • TT Jagannathan, Chairman of TTK Prestige, notes a demand decline due to shifts in discretionary spending, describing it as cyclical with expectations of a Q4 recovery. He foresees high single-digit revenue growth and margins of about 15% in FY25.

  • Jyoti Structures rises as it wins a contract worth Rs 290 crore from Torrent PowerGrid to develop a multi-circuit transmission line in Gujarat.

  • Tata Steel completes the amalgamation of Tata Steel Mining, Tata Steel Long Products, S&T Mining Company, The Tinplate Company of India, and Tata Metaliks into its operations, streamlining its business portfolio.

  • JB Chemicals & Pharmaceuticalssurges to its all-time highof Rs 1,940 as its net profit grows by 25.9% YoY to Rs 133.6 crore in Q3FY24. Revenue rises by 6.5% YoY, helped by improvement in the domestic formulations segment. It features in a screenerof stocks with rising FII holding.

  • Reports suggest that 10 lakh shares (0.3% equity) of SRF, amounting to Rs 227.3 crore, change hands in a large trade.

  • L&Tbags three power transmission and distribution orders worth Rs 2,500-5,000 crore in India and the Middle East. These contracts include building a 75MW floating solar plant in Jharkhand's Panchet dam, a 380kV substation in Saudi Arabia, and executing voltage conversion orders in Kuwait.

  • Suraj Estate Developersrises following the announcement of its luxury residential project 'Suraj Lumina' in Mumbai with an estimated gross development value of Rs 100 crore. The project, featuring 35 units across 22,376 sq ft, is slated for completion by 2028.

  • Berger Paints (India)'s Q3FY24 net profit rises by 49.1% YoY to Rs 299.6 crore. Its revenue increases by 7.3% YoY and EBITDA margin improves by 367 bps YoY on lower raw material, inventory and finance expenses. It appears in a screener of stocks with growing net profit and margins.

  • Anuj Kathuria, President of JK Tyre & Industries, notes a slowdown in the agricultural sector. He also expects muted demand in the MHCV (medium and heavy commercial vehicles) segment in Q4. However, Kathuria believes that sales in the 2W and 3W segments will improve in Q4.

  • Godawari Power & Ispat rises sharply following the Ministry of Environment's approval to expand its iron ore pelletisation capacity from 2.7 MTPA to 4.7 MPTA in Chhattisgarh. The company expects the expansion to be completed by Q1FY26.

  • MN Ventures sells a 0.5% stake in HFCL for approx Rs 73.5 crore in a bulk deal on Tuesday.

  • FSN E-Commerce Ventures (Nykaa) rises as its Q3FY24 net profit grows by 97.7% YoY to Rs 16.2 crore on lower inventory expenses. Its revenue increases by 22.3% YoY, helped by the beauty & personal care and fashion segments. The company's board has approved an investment of Rs 150 crore via rights issue.

  • Britannia Industries' Q3FY24 net profit falls by 40.3% YoY to Rs 556.4 crore due to higher raw material, inventory and employee benefit expenses. However, its revenue improves by 1.4% YoY on rising income from rural and international businesses.

Riding High:

Largecap and midcap gainers today include Trent Ltd. (3,607.50, 18.86%), Indian Overseas Bank (79.65, 17.91%) and YES Bank Ltd. (29.80, 17.32%).

Downers:

Largecap and midcap losers today include Endurance Technologies Ltd. (1,983.25, -6.24%), Kansai Nerolac Paints Ltd. (318.90, -4.46%) and Gland Pharma Ltd. (2,049.00, -4.27%).

Volume Shockers

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

Top high volume gainers on BSE included EIH Ltd. (425.00, 19.57%), Trent Ltd. (3,607.50, 18.86%) and YES Bank Ltd. (29.80, 17.32%).

Top high volume losers on BSE were Navin Fluorine International Ltd. (3,093.20, -5.16%), Indian Energy Exchange Ltd. (145.10, -5.07%) and Prince Pipes & Fittings Ltd. (646.45, -4.02%).

J B Chemicals & Pharmaceuticals Ltd. (1,799.95, 4.33%) was trading at 24.4 times of weekly average. V-Mart Retail Ltd. (2,120.70, 0.94%) and Delta Corp Ltd. (151.60, 10.94%) were trading with volumes 19.7 and 14.3 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

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

Stocks touching their year highs included - Abbott India Ltd. (28,740.00, 1.49%), Apollo Tyres Ltd. (552.20, -0.14%) and Bajaj Holdings & Investment Ltd. (8,611.85, 1.89%).

Stock making new 52 weeks lows included - Navin Fluorine International Ltd. (3,093.20, -5.16%).

16 stocks climbed above their 200 day SMA including Triveni Turbine Ltd. (469.60, 10.55%) and Pidilite Industries Ltd. (2,695.85, 3.11%). 6 stocks slipped below their 200 SMA including Prince Pipes & Fittings Ltd. (646.45, -4.02%) and Timken India Ltd. (3,072.50, -3.96%).