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Trendlyne Marketwatch
Trendlyne Marketwatch
23 Nov 2023
Market closes flat, Motilal Oswal maintains ‘Buy’ rating on Coal India

Trendlyne Analysis

Nifty 50 closed at 19,802.00 (-9.9, -0.1%), BSE Sensex closed at 66,017.81 (-5.4, 0.0%) while the broader Nifty 500 closed at 17,639.40 (11.7, 0.1%), of the 1,976 stocks traded today, 1,067 showed gains, and 863 showed losses.

Indian indices closed flat, with the benchmark Nifty 50 index closing at 19,802 points. The volatility index, India VIX, fell 4.6% and closed at 11.3 points. Honasa Consumer rose sharply and closed 20% higher after its Q2FY24 net profit grew by 73.2% YoY to Rs 29.4 crore.

Nifty Smallcap 100 closed in the green and outperformed the benchmark index. Nifty Metal and Realty closed higher than their Wednesday close. According to Trendlyne's sector dashboard, Telecommunications Equipment was the top-performing sector of the day as it rose 1.4%.

Major European indices traded in the green, except for the Swiss Market Index, which traded in the red. Major Asian indices closed flat or higher amid positive global cues. US index futures traded flat, indicating a cautious start to the trading session. Brent crude oil futures traded in the red after falling 1.1% on a volatile day of trade on Wednesday.

  • Money flow index (MFI) indicates that stocks like Ratnamani Metals & Tubes, Trent, Alkem Laboratories and The New India Assurance are in the overbought zone.

  • Cipla falls by over 7% as the US FDA issues a warning letter to its manufacturing facility in Pithampura. The US FDA has pointed out violations of good manufacturing practices and regulations concerning product quality at this site.

  • Equitas Small Finance Bank rises as HDFC Mutual Fund acquires a 2.1% stake (2.3 crore shares) in the company. After the acquisition, the AMC holds 6.2% of the bank.

  • Jindal Stainless, JSW Energy, Mphasis and Metro Brands outperform the Nifty 50 index over the past month post their Q2FY24 results.

  • Motilal Oswal maintains its ‘Buy’ rating on Coal India and raises its target price to Rs 380 from Rs 290, indicating an upside of 14.1% from the current market price. The brokerage is optimistic about the company's prospects, noting it is on track to meet its FY24 production target of 780 million tonnes, aligned with rising demand. It also adds that the e-auction premium remaining stable at 85-90% augurs well for the firm.

  • Gandhar Oil Refinery's Rs 500.7 crore IPO gets bids for 15.3X the available 2.1 crore shares on offer on the second day of bidding. The retail investor quota gets bids for 17.2X the available 1.1 crore shares on offer.

  • Flair Writing Industries' Rs 593 crore IPO gets bids for 6.1X the available 1.4 crore shares on offer on the second day of bidding. The retail investor quota gets bids for 7.1X the available 72.1 lakh shares on offer.

  • According to CLSA, Reliance Jio Infocomm's initial public offering (IPO) will be a stock-rerating catalyst for Bharti Airtel. The brokerage has a 'Buy' rating on both Bharti Airtel and Reliance Industries. Jio's market leadership and digital expansion vision justify a premium in valuation.

  • Fedbank Financial Services' Rs 1,092.3 crore IPO gets bids for 0.9X the available 5.6 crore shares on offer on the second day of bidding. The retail investor quota gets bids for 1.3X the available 2.8 crore shares on offer.

  • Tata Technologies' Rs 3,042.5 crore IPO gets bids for 14.9X the available 4.5 crore shares on offer on the second day of bidding. The retail investor quota gets bids for 11.2X the available 1.8 crore shares on offer.

  • Indian Renewable Energy Development Agency's Rs 2,150.2 crore IPO gets bids for 38.8X the available 47.1 crore shares on offer on the third day of bidding. The retail investor quota gets bids for 7.7X the available 23.5 crore shares on offer.

  • Goldman Sachs maintains its ‘Buy’ rating on Adani Ports & Special Economic Zone but increases the target price to Rs 855. The brokerage considers the company’s FY24 volume guidance of 370-390 MT (million tonnes) conservative and believes it could achieve a volume of 405 MT. It also highlights the strong growth in the logistics segment.

  • Realty companies like Indiabulls Real Estate, Sobha, Oberoi Realty, Prestige Estates Projects and Brigade Enterprises are rising in trade. Barring Godrej Properties, all the other constituents of the broader sectoral index, BSE Realty, are trading in the green.

  • Servotech Power Systems is rising as it bags an order for 2,649 EV chargers from Bharat Petroleum Corp. The company will manufacture, supply and install EV chargers across India.

  • Strides Pharma Sciencerises as its unit, Strides Pharma Global, gets US FDA approval for a generic drug equivalent to Braintree Labs' Suprep Bowel Prep Kit. The drug has an estimated market share of $143 million in the USA, as per IQVIA. The company appears in a screenerof stocks with strong momentum.

  • Jitendra Kumar Agarwal, Joint MD of Genus Power Infrastructures, expects the company to close FY24 with revenues between Rs 1,200-1,300 crore. For FY25, he anticipates a quarterly revenue run rate of Rs 500-700 crore. He also expects the company's margins to remain in the mid-teens, and the order book is projected to exceed Rs 20,000 crore by year-end.

  • KRChoksey downgrades its rating onBalaji Amines to ‘Add’ from ‘Buy’ and cuts its target price to Rs 2,172 from Rs 2,803. This implies an upside of 7.5%. The brokerage believes the company’s revenue and profitability will be severely impacted over the next few quarters due to the slowdown in demand and drop in price realisations.

  • Pharmaceutical companies like Cipla, Aurobindo Pharma, Lupin, Ipca Laboratories and Divi’s Laboratories are falling in trade. The broader sectoral index, Nifty Pharma, is also trading in the red.

  • Central Depository Services (India) rises as it becomes the first depository to surpass 10 crore Demat accounts. This is due to the post-pandemic increase in equity investors. The company appears in a screener of stocks nearing their 52-week highs with significant volumes.

  • According to Bloomberg's data analysis, India is the world's most popular emerging market this year. Despite foreign investors withdrawing funds from many other developing economies, India has attracted billions of dollars in investments this year. Analysts predict more broad-based spending in 2024 and expect a recovery in rural demand from its multiyear slump.

  • Power Grid Corporation of India's Committee of Directors approves the Maheshwaram (PG) Substation project in Telangana, estimated at Rs 142.7 crore, and a transmission system development project in Khavda, Gujarat, valued at Rs 224.4 crore. It appears in a screener for stocks with strong momentum.

  • TVS Motor rises to its all-time high of Rs 1,784.9 per share as it enters the Vietnamese market with Minh Long Motors as its distribution partner.

  • InterGlobe Aviation trades flat as the Commissioner of Income Tax (Appeals) stays the tax demand orders of Rs 739.6 crore and Rs 927 crore for FY17 and FY18, respectively.

  • Home First Finance is falling as reports suggest that 86.2 lakh shares (9.8% equity), amounting to Rs 754.4 crore, change hands in a block deal.

  • Telecom stocks like Tata Teleservices (Maharashtra), GTL Infrastructure, Optiemus Infracom and Sterlite Technologies are rising in trade. All constituents of the broader BSE Telecom index are also trading in the green.

  • Ashish Kacholia sells a 1.1% stake in SJS Enterprises for approx Rs 21.8 crore in a bulk deal on Wednesday.

  • Welspun Corpis rising as its subsidiary, Sintex BAPL, receives an approval from the government of Odisha to invest Rs 479.5 crore in establishing a pipe manufacturing unit in Sambalpur. The unit, with a production capacity of 37,520 MT per annum, is expected to be operational in the next three years.

  • Honasa Consumer rises to an all-time high of Rs 388 as its Q2FY24 net profit grows by 73.2% YoY to Rs 29.4 crore. Its revenue increases by 20.8% YoY driven by volume growth. The company appears in a screener of stocks with growing net profit and margins.

Riding High:

Largecap and midcap gainers today include Hindustan Petroleum Corporation Ltd. (326.70, 6.94%), Aditya Birla Fashion and Retail Ltd. (226.30, 5.26%) and YES Bank Ltd. (20.15, 4.95%).

Downers:

Largecap and midcap losers today include Tube Investments of India Ltd. (3,422.45, -8.25%), Cipla Ltd. (1,170.65, -7.93%) and Persistent Systems Ltd. (6,378.85, -3.26%).

Movers and Shakers

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

Top high volume gainers on BSE included EID Parry (India) Ltd. (532.10, 8.37%), Praj Industries Ltd. (615.90, 6.22%) and Indiabulls Real Estate Ltd. (84.25, 5.97%).

Top high volume losers on BSE were Cipla Ltd. (1,170.65, -7.93%), Mas Financial Services Ltd. (842.45, -6.45%) and Home First Finance Company India Ltd. (877.20, -4.08%).

Quess Corp Ltd. (495.25, 1.04%) was trading at 8.4 times of weekly average. Vedant Fashions Ltd. (1,299.00, -0.18%) and Ingersoll-Rand (India) Ltd. (2,931.50, 0.29%) were trading with volumes 8.4 and 7.2 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

28 stocks made 52 week highs,

Stocks touching their year highs included - Ajanta Pharma Ltd. (1,951.40, 1.71%), Bajaj Auto Ltd. (5,925.25, 3.02%) and Bharat Petroleum Corporation Ltd. (411.30, 2.29%).

9 stocks climbed above their 200 day SMA including EID Parry (India) Ltd. (532.10, 8.37%) and Aditya Birla Fashion and Retail Ltd. (226.30, 5.26%). 8 stocks slipped below their 200 SMA including VIP Industries Ltd. (624.00, -0.87%) and PNC Infratech Ltd. (323.85, -0.63%).

 
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The Baseline
23 Nov 2023
By Akshat Singh

While looking at what analysts recommend as stocks to buy, the average target price upside is crucial. This metric looks at the potential share price growth of a stock, as forecasted by analysts. A higher upside percentage indicates a more positive outlook, and a potential for growth beyond the stock’s current valuation. 

It's important to note that analyst predictions are not always accurate – there are unexpected factors that can affect a business, and its stock price. This is a cloudy crystal ball. But analyst calls are one among several factors investors can consider before picking a stock.

In this edition of Chart of the Week, we focus on this screener, which highlights stocks with high target prices and a significant upside according to analysts. We have selected sectors with the highest upside % and the stocks within these sectors driving this upward trend. We have only included stocks with positive price changes in the past six months. 

Analysts highlight chemical sector’s high upside amid expansions

The chemical & petrochemical sector has been on the mend, and Anupam Rasayan India is set for an especially strong performance, according to analysts, with an average share price upside of 42.2%. The stock has risen by 9.7% in the past month. Prabhudas Liladher expects the company’s revenue to grow on the back of three factors: its commercialization of innovative products, a robust order book, and its expansion into fluorination chemistry, which signifies diversification within the industry.

PI Industries also shows promise with an average price upside of 17.5%. The stock has risen by 12.4% in the past six months. According to Axis Direct, PI Health Sciences aims to boost its research capabilities by acquiring firms for a new pharmaceutical centre in Hyderabad. New brand launches and reduced working capital point to the company's growth plans. Finally, we have Aarti Industries with an average share price upside of 16.8%. It has risen  by 5.3% in the past six months. 

Analysts expect high growth in internet software and services 

Next, we move to the software & services sector, where Infibeam Avenues has an average share price upside of 28.7%. Its stock price has risen by 48.6% in the past six months. New-tech company Zomato has an average share price upside of 20.4% and rose by 80.6% in the same period. According to Motilal Oswal, India's food delivery sector is still developing and holds significant growth opportunities. They predict Zomato's revenue to grow at a CAGR of 53% annually from FY23 to FY25 due to its strong market presence in the food delivery and Hyperpure segments. 

PB Fintech’s average share price upside stands at 7.8% and its stock price has risen by 29.7% in the past six months. According to Keynote Capital, the company is going through a crucial growth phase, driven by increased commission revenue, expansion into smaller cities, and effective cost management. Its insurance premiums have grown by 36.5%, due to a surge in health insurance, while lending disbursals rose by 41.6% in Q2FY24. 

Moving on to the banking & finance sector, the Indian Energy Exchange has an average share price upside of 19.6%. The stock has risen by 1.4% in the past month. Similarly, Union Bank of India has an average share price upside of 15.6%, with a 57.9% rise in the past six months. The upside is thanks to management efforts to maintain gross non-performing assets (GNPA) below 6% and net non-performing assets (NNPA) under 1% for FY24. 

As for Can Fin Homes, analysts expect a price upside of 10.2%. The stock has risen by 17% in the past six months. This upside is attributable to an increase in net interest margin (NIM) despite higher credit costs. By closely managing credit and operating expenses, the company aims to improve return ratios.

In the automobiles and auto components sector, CIE Automotive India has the highest average share price upside of 22.1%. The stock has risen by 8.7% in the past six months. Analysts anticipate increased profits due to CIE's decision to sell its German operations, which is expected to increase EBITDA margins for its European business, in line with the company's targeted EBITDA range of 17-18%. 

The two companies of the Minda group, Uno Minda and Minda Corporation, have price upsides of 9.4% and 9.1%, respectively. These stocks have risen by 22.9% and 25.1% in the past six months. 

Cement & construction sector’s outlook strong amid robust order books 

In the cement & construction sector, IRB Infrastructures Developers leads with the highest average share price upside of 39.1%. The stock has risen by 28.8% in the past six months. The positive outlook is tied to the company's steady FY24 construction revenue projection, expected to be in the range of  Rs 5,000-5,500 crore, a 20-25% rise from the previous year. Looking forward, the company plans to bid on projects worth Rs 80,000-85,000 crore by Q3FY24.

KNR Constructions follows with an upside of 14%. The stock has risen by 24% in the past six months. According to Motilal Oswal, although the order inflow has been low so far, the tender pipeline remains strong. Due to reduced awarding activity by NHAI in H1FY24, KNRC has adjusted its FY24 order inflow estimate to Rs 2,000-3,000 crore. With an existing order book of Rs 7,500 crore, the company is projected to achieve an 11% CAGR in revenue for FY23-25. Birla Corporation also has a price upside of 7.8%. The stock has risen by 31.6% over the past six months.

In the FMCG sector, Dabur India is at the forefront with the highest average share price upside of 16.4%. The stock has risen by 4.2% in the past six months. It is followed by Godrej Consumer and Tata Consumer, with price upsides of 15.8% and 6.3%, respectively. Analysts hold a positive outlook for this sector as they foresee improvements driven by lower core inflation, increased government spending, higher urban remittances, and the likelihood of easing raw material prices boosting profit margins.

General industrials and Pharmaceutical stocks rise on regulatory approvals

3M India is the top performer in the General Industrials sector with an average upside of 13.9%. The stock has risen by 29.5% in the past six months. Next in line is defence player Bharat Dynamics, with an upside of 11.3%. The stock has risen by 6.4% in the same period. This optimistic view comes from the Defence Acquisition Council's approval in September 2023 for the production of Dhruvastra missiles, intended for the indigenous ALH Mk-IV helicopters. Elgi Equipments also has an average share price upside  of 7.9%. It has risen by 9.6% in six months.

Shifting to the pharmaceutical & biotechnology sector, Gland Pharma leads with an 11% average share price upside and a stock price rise of 55.2% in the past six months. According to Axis Direct, the company has expanded in Europe by acquiring Cenexi for CDMO operations and established new B2B partnerships in various markets by optimizing its US-approved ANDA portfolio. Major international players like Procter & Gamble Health and Pfizer are also in the spotlight with average upsides of 8.4% and 6.6%, respectively

 
Trendlyne Marketwatch
Trendlyne Marketwatch
22 Nov 2023
Market closes flat, Tata Technologies' IPO gets bids for 6.5X the available shares

Trendlyne Analysis

Nifty 50 closed at 19,811.85 (28.5, 0.1%) , BSE Sensex closed at 66,023.24 (92.5, 0.1%) while the broader Nifty 500 closed at 17,627.70 (0.1, 0%), of the 1,983 stocks traded today, 777 showed gains, and 1,171 showed losses.

Indian indices recovered from the day's low and closed in the green, with the Nifty 50 closing at 19,812. The volatility index, Nifty VIX, dropped by 3% and closed at 11.9 points. Tata Technologies' Rs 3,042.5 crore IPO gets bids for 6.5X the available 4.5 crore shares on offer on the first day of bidding.

Nifty Smallcap 100 closed lower, while Nifty Midcap 100 closed in the green following the benchmark index. Nifty FMCG and Nifty IT closed higher than Tuesday’s closing level. According to Trendlyne’s sector dashboard, textiles apparel & accessories emerged as the top-performing sector of the day, with a rise of over 0.7%.

Most European indices trade in the green except for England’s FTSE 100 in the red. US indices futures trade higher indicating a positive start. The data released by South Africa’s Statistical Office indicated that the country’s CPI inflation for October expanded by 5.9% against estimates of 5.5%.

  • Relative strength index (RSI) indicates that stocks like Ratnamani Metals & Tubes, Trent, Alkem Laboratories, RattanIndia Enterprises and Narayana Hrudayalaya are in the overbought zone.

  • CG Power and Industrial Solutions surges to an all-time high of Rs 469.4 after filing an application with the Ministry of Electronics and Information Technology (MeitY). The application is to set up an Outsourced Semiconductor Assembly and Test (OSAT) facility. They are seeking approval for a subsidy under the Modified Scheme for semiconductor facilities in India.

  • IDBI Bank falls over 3% as the government cancels the bidding process to hire an asset valuer for its planned divestment. The Department of Investment and Public Asset Management cites the receipt of only one bid as the reason for the cancellation, stating plans to invite fresh bids in the future.

  • Sical Logistics is falling despite its consortium with DSPL Mining bagging an order worth Rs 135 crore from Mahanadi Coalfields, a subsidiary of Coal India. The company will have a 25% share in the contract.

  • Realty stocks like Godrej Properties, Oberoi Realty, Phoenix Mills and Brigade Enterprises are falling in trade. All constituents of the broader Nifty Realty index are also trading in the red.

  • Gandhar Oil Refinery's Rs 500.7 crore IPO gets bids for 5.5X the available 2.1 crore shares on offer on the first day of bidding. The retail investor quota gets bids for 6.9X the available 1.1 crore shares on offer.

  • Flair Writing Industries' Rs 593 crore IPO gets bids for 2.2X the available 1.4 crore shares on offer on the first day of bidding. The retail investor quota gets bids for 2.9X the available 72.1 lakh shares on offer.

  • Delhivery falls over 3% as 28.7 lakh shares (0.4% equity), amounting to Rs 110 crore, reportedly change hands in a large trade.

  • Fedbank Financial Services' Rs 1,092.3 crore IPO gets bids for 0.4X the available 5.6 crore shares on offer on the first day of bidding. The retail investor quota gets bids for 0.7X the available 2.8 crore shares on offer.

  • Tata Technologies' Rs 3,042.5 crore IPO gets bids for 6.5X the available 4.5 crore shares on offer on the first day of bidding. The retail investor quota gets bids for 5.4X the available 1.8 crore shares on offer.

  • Indian Renewable Energy Development Agency's Rs 2,150.2 crore IPO gets bids for 4.5X the available 47.1 crore shares on offer on the second day of bidding. The retail investor quota gets bids for 4.3X the available 23.5 crore shares on offer.

  • According to the Finance Ministry's latest monthly economic review, India is likely to conclude FY24 with solid growth and macroeconomic stability. However, inflation and the influence of external variables on the rupee could pose threats.

  • Wipro signs a strategic partnership with Nvidia to assist healthcare organizations in accelerating the adoption of generative artificial intelligence (gen AI). Wipro will employ NVIDIA AI Enterprise software across its existing healthcare solutions portfolio. It appears in a screener of stocks with low debt.

  • Texmaco Rail & Engineering rises as it launches its qualified institutional placement (QIP) issue to raise Rs 750 crore. The floor price is fixed at Rs 135.9 per share. The company appears in a screener of stocks with strong momentum.

  • Reliance Industries' Chairman and MD, Mukesh Ambani, says the company plans to invest Rs 20,000 crore in West Bengal in the next three years. The investment aims to provide digital life solutions, add new retail stores and develop the bioenergy segment.

  • Rajiv Bajaj, CEO of Bajaj Auto, says that the company is developing a CNG two-wheeler, with an expected launch in 2025. He notes the global absence of CNG two-wheelers, contrasting it with the three-wheeler sector where CNG has been adopted by 60%. He also mentions new launches lined up for the next month and the firm's plans to double production and sales of Triumph motorcycles.

  • HDFC Securities maintains its ‘Buy’ rating on Stylam Industries with a target price of Rs 2,300. This implies an upside of 25.3%. The brokerage is optimistic about the company’s prospects due to its industry-leading EBITDA margins, healthy balance sheet and expanding production capacity. It expects the firm’s net profit to grow at a CAGR of 26.4% over FY23-26.

  • Aurobindo Pharma rises to an all-time high of Rs 1,043 as its subsidiary, Acrotech Biopharma, receives the US FDA approval for its anti-cancer drug, Ryzneuta. The global market share of the drug is estimated to be $6 billion. The company appears in a screener of stocks with growing net profit and margins.

  • RBI Governor Shaktikanta Das highlights that for the past 1.5 years, the focus of the monetary policy has been on controlling inflation. He adds that while there has been a moderation in core inflation, headline inflation remains exposed to food price shocks.

  • Prataap Snack surges more than 5% to touch its 52-week high of Rs 1,080 per share as its promoter, Arun Kumar Mehta, sells 1.3 lakh shares (5.4% stake) in the company in the open market. This transaction takes the promoter holding to 64.3% from 69.8%.

  • GMR Power & Urban Infra (GPUIL) rises as it acquires a 29.1% stake (105 crore shares) in GMR Energy (GEL) for $28.5 million (around Rs 237.3 crore) from Power and Energy International, Mauritius. With this deal, GPUIL now holds an 86.9% stake in GMR Energy.

  • Tata Technologies raises Rs 791 crore from anchor investors ahead of its IPO by allotting around 1.6 crore shares at Rs 500 each. Investors include BNP Paribas Arbitrage, HSBC, Goldman Sachs, Nippon Life India, SBI Mutual Fund, Mirae Asset Mutual Fund and Bajaj Allianz Life Insurance.

  • Goldman Sachs initiates coverage on Polycab India with a 'Buy' rating and a target price of Rs 5,750. The brokerage expects the company to gain from India's infrastructure initiatives and emerging sectors like electric vehicles. It prefers Polycab due to its larger distribution network and greater growth prospects. Meanwhile, it gives a 'Neutral' rating on KEI Industries with a target price of Rs 2,730.

  • Divya Mahesh Vaghela buys a 0.6% stake in FIEM Industries for Rs 15.2 crore in a bulk deal on Tuesday.

  • Pharmaceutical companies like Natco Pharma, GlaxoSmithKline Pharmaceuticals, Sanofi India, Cipla and Pfizer are rising in trade. All the constituents of the broader sectoral index, Nifty Pharma, are also trading in the green.

  • Jindal Stainless falls even as SBICAP Trustee Company informs about the release of its founders' pledged shares. This results in the company having no pledged shares with lenders. The company appears in a screener of stocks with low debt.

  • JK Paper is falling as it receives a demand notice for income tax and penalty totalling Rs 65.6 crore for the assessment year 2020-21. The stock shows up in a screener for companies where mutual funds have decreased their shareholdings in the last quarter.

  • Tata Consultancy Services (TCS) announces a provision of $125 million as an ‘exceptional item’ for Q3FY24, linked to a trade secret lawsuit by US-based Epic Systems. This follows the US Supreme Court rejecting TCS's appeal against an earlier court verdict. Epic Systems filed the lawsuit in 2014, alleging TCS of intellectual property theft.

Riding High:

Largecap and midcap gainers today include CG Power and Industrial Solutions Ltd. (469.35, 19.99%), Tube Investments of India Ltd. (3,730.35, 16.72%) and JSW Energy Ltd. (418.15, 4.43%).

Downers:

Largecap and midcap losers today include Solar Industries India Ltd. (6,649.25, -4.25%), Delhivery Ltd. (385.70, -3.50%) and IDBI Bank Ltd. (60.45, -2.97%).

Crowd Puller Stocks

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

Top high volume gainers on BSE included CG Power and Industrial Solutions Ltd. (469.35, 19.99%), Tube Investments of India Ltd. (3,730.35, 16.72%) and eClerx Services Ltd. (2,627.20, 12.40%).

Top high volume losers on BSE were Sonata Software Ltd. (1,302.30, -4.84%), Raymond Ltd. (1,677.20, -3.74%) and EID Parry (India) Ltd. (491.00, -0.25%).

Vardhman Textiles Ltd. (419.00, 9.06%) was trading at 23.5 times of weekly average. Aegis Logistics Ltd. (328.75, 5.05%) and Godrej Industries Ltd. (667.80, 1.56%) were trading with volumes 14.1 and 8.4 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

33 stocks overperformed with 52 week highs,

Stocks touching their year highs included - Aurobindo Pharma Ltd. (1,055.75, 2.77%), Bajaj Auto Ltd. (5,751.55, 1.15%) and Bosch Ltd. (20,760.00, 0.20%).

10 stocks climbed above their 200 day SMA including Carborundum Universal Ltd. (1,170.05, 6.89%) and Marico Ltd. (532.70, 1.16%). 10 stocks slipped below their 200 SMA including GMM Pfaudler Ltd. (1,538.80, -3.02%) and Devyani International Ltd. (179.95, -2.89%).

 
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The Baseline
21 Nov 2023, 05:08PM
Which stocks did superstar investors sell in Q2FY24?
By Suhas Reddy

Superstar investor portfolios are closely tracked, for valuable insights into market trends and strategies. The proof is in the pudding - the most-watched superstars have a long track-record in increasing their net worth and making high-return picks. These seasoned investors' buying and selling decisions tell us quite a bit about their views on various stocks and sectors.

All superstar investors see their net worth rise in Q2FY24

Previously, we looked at the key superstar buys in Q2FY24. Now, let's analyse their sells. 

Biggest sells by superstars in Q2FY24

Rakesh Jhunjhunwala/RARE Enterprises makes fewer sells compared to previous quarters

Rakesh Jhunjhunwala’s portfolio, currently managed by his wife Rekha Jhunjhunwala, and investment firm Rare Enterprises, cut its stakes in four companies in Q2FY24. Despite these sales, the late big bull’s portfolio grew by 1.6% QoQ to Rs 39,507 crore.

The investment firm reduced its holdings in two companies to below 1% in the July-September quarter. The biggest sell was in the agrochemicals company, Rallis India, where its stake was cut from 7.8% to below 1%. Rallis’ share price has fallen by 4.9% over the past year. 

Similarly, the portfolio took its stake to below 1% from 2.5% in Autoline Industries. This auto parts & equipment stock rose by 6.1% over the past year. 

Jhunjhunwala’s portfolio pares stakes in four companies

The other two sells include firms from the banking and finance sector. It cut its stake in Federal Bank by 0.4% to 3.1% and in Star Health & Allied Insurance Co, a general insurance firm, by 0.6% to 17.25%. 

Ashish Kacholia sells stakes in two recently added stocks 

Ashish Kacholia sold stakes in 11 companies in Q2FY24. During the quarter, his net worth increased by 25.3% QoQ to Rs 2,541.1 crore. He reduced his stakes in Venus Pipes & Tubes and SG Finserve to below 1% each, despite having added these metals and finance companies to his portfolio in Q1. Venus Pipes’ share price rose 14.2% over the quarter while SG Finserve fell by 6.1%. 

Kacholia also scaled back his stakes in Arvind Fashions (apparels and accessories manufacturer) and Bharat Bijlee (electrical engineering company) to below 1% each. Their stock prices rose 17.8% and 69.2% respectively in the past year. He held 1.1% and 1.8% in them respectively in the previous quarter. 

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

Kacholia reduced his stake in auto parts manufacturer SJS Enterprises by 1.1% and now holds 3.2% (stock price increased by 33.2% in the past year). The ace investor also trimmed a 0.4% stake each in Xpro India (containers & packaging company) and NIIT (IT training services provider) and now holds 3.9% and 1.86%, respectively. He cut his stake in Repro India (publishing company) to 3.2% by selling a 0.3% stake.

Kacholia also sold a 0.2% stake in Safari Industries (India) and a 0.1% stake in ADF Foods. He now holds 2.1% in the textile company and a 2.8% stake in the FMCG company. He also slightly reduced his stake in Ami Organics to 2.1%.

Sunil Singhania goes on a selling spree

Sunil Singhania’s Abakkus Fund pared stakes in nine companies in Q2FY24. But the Fund’s net worth rose by 12.6% QoQ to Rs 2,382.4 crore during the same period, thanks to gains in the existing portfolio and a few buys. It sold a 1.95% stake in Rajshree Polypack retaining 4.28% of it. The commercial services and supplies company’s stock price grew 23% in the past year.

Sunil Singhania cuts stake in Rajshree Polypack by 1.95%

The fund also trimmed its stakes in Hindware Home Innovation and Ion Exchange (India) (prices increased by 48.6% and 137% in the past year), a consumer durables and utilities company, by 0.5% each. It now holds 4.4% and 2.8% stakes in the companies, respectively. It also reduced its stake in AGI Greenpac (a diversified consumer services company) and Dreamfolks Services (a travel support services company) and now holds 1.4% and 1.5% respectively. 

Abakkus cut a 0.1% stake each in Uniparts India (heavy electrical equipment manufacturer) and Siyaram Silk Mills (textile company) to now hold 2.2% and 1.9% respectively. It also cut a minor stake in CMS Info Systems and Mastek, and now holds 1% and 3.2%, respectively.

Vijay Kedia removes two companies from his portfolio

Vijay Kedia adjusted his portfolio by reducing stakes in six companies in Q2FY24. His net worth increased by 41% QoQ to Rs 1,388.8. He slashed his stakes in Heritage Foods and Panasonic Energy India to below 1% during the quarter, from a 1.2% stake each in the packaged foods and electronic components companies in Q1FY24. The stock price of the former increased by 41.5% while the later fell by 25.7% in the past year.

Vijay Kedia takes stakes to below 1% in two companies

Kedia sold a 3.5% stake in Affordable Robotic & Automation over H1FY24. He now holds a 9.9% stake in the industrial machinery manufacturer. The company rose by 268.6% in the past year. He also cut his stake in Repro India to 6.36% by selling a 0.5% share of the publishing company. 

He sold a 0.2% stake in Elecon Engineering as well. He now holds 1.6% in the industrial machinery manufacturer. He reduced his stake in Tejas Networks (a telecom company) to 2% by selling a 0.1% stake. 

Dolly Khanna offloads stakes in multiple companies in Q2FY24

Dolly Khanna sold significantly in Q2FY24, as she cut her holdings in nine companies. Her portfolio grew by 16.5% QoQ to Rs 359.8 crore in the July-September quarter. However, she has not reduced her stakes in any of these companies below the 1% threshold. 

Dolly Khanna reduces holdings in nine companies

The superstar investor’s biggest sell in Q2 was Pondy Oxides & Chemicals, an other non-ferrous metals manufacturer, in which she reduced her stake by 0.6% to 3.1%. Over the past year, this small-cap company gained 21.9%. 

She lowered her stake in Simran Farms by 0.44% to 1.44%, while stock price has increased by 19.5% over the past year. In Monte Carlo Fashions she cut her holding by 0.42% to 1.94%, while its share price movement has been flat over the past year, rising by a marginal 0.3%. 

She also cut a 0.3% stake in the cement company, KCP, bringing her holding to 1.4%. The ace investor trimmed her stakes by 0.2% each in Chennai Petroleum Corp, Nitin Spinners and Som Distilleries & Breweries, now owning 1.6%, 1.2% and 1.1% in them respectively. She also brought down her stake in Mangalore Chemicals & Fertilizers by 0.1% to 1.2% and slightly reduced her holding in Tinna Rubber and Infrastructure. 

Porinju V Veliyath cuts holdings in nine companies

In Q2FY24, Porinju V Veliyath sold his stakes in nine companies and among them, he pared his holdings to below 1% in five. His portfolio grew by 38% QoQ to Rs 208.7 crore. 

He took his stake in Priti International from 1.3% to below 1%. This furniture manufacturing company gained 49.3% over the past year. He also reduced his stake in Taneja Aerospace & Aviation, to below 1% from 1.2%. This aerospace firm had surged by 93.2% over the past year.  

The ace investor brought his stakes to below 1% from 1.1% each in Lakshmi Automatic Loom Works, Kovilpatti Lakshmi Roller Flour Mills and Ansal Properties & Infrastructure. 

Porinju takes his stakes in five companies to below 1% 

However, the superstar investor’s biggest sell in Q2 was in Ansal Buildwell, a realty company, where he reduced his stake by 1.4% to 2% and the stock had fallen by 5.8% over the past year. He trimmed his stake in the commodity chemicals firm, Ashok Alco-Chem, by 1.1% to 3%. He also cut minor stakes in Max India and Thejo Engineering. 

Mohnish Pabrai sells his stake in a petrochemicals company

Mohnish Pabrai’s net worth increased by 25.6% QoQ to Rs 1,364.9 crore in Q2FY24. During this period, he reduced his stake in Rain Industries to 6.95% by selling a 1.87% stake in the petrochemicals company. Rain Industries reported a loss for the first time after a streak of profitability for five consecutive quarters. Its stock price fell by 17.8% in the past year.

Mohnish Pabrai pares stake in Rain Industries

This analysis by Trendlyne is meant for investor education - to help understand companies and make informed investment decisions on their own. It should not be considered an investment recommendation.

 
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The Baseline
21 Nov 2023, 05:05PM
5 stocks to buy from analysts this week
By Abhiraj Panchal

1. Bajaj Finance:

Axis Securities maintains its 'Buy' call on this banking and finance company with a share price target of Rs 9,425. This indicates a potential upside of 32.7%. Analysts Dnyanada Vaidya and Prathamesh Sawant remain positive on the firm despite an RBI’s directive asking Bajaj Finance to stop approving loans for the Insta EMI Card and eCOM due to non-compliance with online lending regulations, particularly in interest rates and repayment methods.

According to the analysts, this regulation is not expected to significantly impact the company's financials, as only 4.1% of Bajaj Finance's total disbursements come from the EMI card segment. However, they caution that prolonged “restrictions would affect the company’s customer acquisition momentum” since the EMI card segment constitutes 18-21% of total new customer acquisitions. They also expect a potential decline in the return on assets in the case of lower fee income, and pressures in the Net Interest Margin (NIM) in H2FY24.

2. Aarti Industries:

Geojit BNP maintains its ‘Buy’ call on this specialty chemicals manufacturer with a target price of Rs 600. This indicates an upside of 15.1%. In Q2FY24, the company’s net profit fell 27.2% YoY, while its revenue dropped by 13.7% YoY. 

The revenue was lower than the brokerage’s estimates due to inventory destocking and decreasing realisation. According to analyst Anil R, sequential growth in EBITDA was led by falling input costs and operational expenses.

The company’s management says that the worst impacts were observed in H1FY24, with demand revival in dyes, polymers, additives, and some discretionary categories. Aarti Industries has also planned a capex of Rs 3,000 crore for 40 new value-added products over FY24-25. 

The analyst says, “Our confidence is bolstered by the sector's robust growth prospects, Aarti Industries strategic emphasis on portfolio expansion, aggressive capacity expansion, and the anticipated uptick in long-term contracts.” He expects profit to grow by 12% CAGR over FY24-25.

3. Tata Steel:

Bob Capital reiterates its ‘Buy’ call on this steel products manufacturer with a target price of Rs 150, indicating an upside of 18.8%. According to analysts Kirtan Mehta and Yash Thakur, the company’s Q2FY24 performance has been weak but only marginally below their estimates. They suggest a sequential improvement in Q3 is likely, and note that the company’s “profit has bottomed in Q2 as operations in the Netherlands return to breakeven, and India’s H2 demand outlook improves”.

Tata Steel’s cash transition cost assessment of 235 million pounds for redundancies and asset closures aligns broadly with the brokerage’s prior estimate of 250 million pounds for the decarbonisation of its UK operations. The company has planned a similar capex for transitioning the operations in the Netherlands as well. Despite the weak results, the analysts remain confident in Tata Steel’s ability to deliver earnings-accretive growth.

4. KNR Constructions:

HDFC Securities maintains its ‘Buy’ rating on this construction & engineering company with a share price target of Rs 341, implying an upside of 14.3%. In Q2FY24, its net profit grew by 27.8% YoY to Rs 147.4 crore and revenue increased by 8% YoY.  

Analysts Parikshit D Kandpal, Nikhil Kanodia and Manoj Rawat note that while KNR’s revenue and profit growth in Q2 were healthy, its EBITDA margin fell YoY due to volatile raw material prices and higher fixed costs. They add that the firm recorded no new orders in H1FY24, leading to a “revised  FY24 order inflow target range of Rs 3,000-4,000 crore, down from Rs 4,000-5,000 crore earlier”. 

However, the analysts expect the firm to win orders in H2FY24 on the back of diversification into different segments and geographies. Kandpal, Kanodia and Rawat remain optimistic about KNR’s prospects given its healthy balance sheet, strong execution capabilities and order pipeline. They estimate the company’s net profit to grow at a CAGR of 10.4% over FY23-26. 

5. Grasim Industries:

Motilal Oswal keeps its ‘Buy’ rating on this cement manufacturer with a target price of Rs 2,380. This implies an upside of 20.4%. In Q2FY24, its net profit rose by 15.3% YoY to Rs 1,163.8 crore and revenue grew by 10% YoY. Analysts Sanjeev Kumar Singh and Mudit Agarwal attribute the growth in net profit to a healthy performance in the viscose staple fibre (VSF) segment. VSF, a man-made biodegradable fibre, is emerging as an alternative to cotton. However, the analysts point out that the firm’s EBITDA was impacted due to cost pressures in the chemical segment.

Singh and Agarwal expect the company’s margins to stabilise in H2FY24 on the back of caustic soda prices improving from their lows. They see the slight rise in VSF prices in China and the launch of its paint business as key positives. They add, “We believe that the firm raising Rs 4,000 crore through a rights issue will ease pressure on the balance sheet and support  its growth plans.” The analysts expect the company’s revenue to grow at a CAGR of 9.5% over FY23-25. 

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

(You can find all analyst picks here)

 
Trendlyne Marketwatch
Trendlyne Marketwatch
21 Nov 2023, 03:55PM
Market closes higher, KRChoksey maintains ‘Buy’ rating on Tata Motors

Trendlyne Analysis

Nifty 50closed at 19,783.40 (89.4, 0.5%), BSE Sensexclosed at 65,930.77 (275.6, 0.4%) while the broader Nifty 500closed at 17,627.60 (54.0, 0.3%). Market breadth is in the green. Of the 1,989 stocks traded today, 1,038 showed gains, and 899 showed losses.

Indian indices maintained their gains from the afternoon session and closed in the green, with the Nifty 50closing at 19,783.4 points. The Indian volatility index, Nifty VIX, rose 0.6% and closed at 12.2 points. Godrej Properties closed 2.2% higher after its Executive Chairperson, Pirojsha Godrej, said the company is on track to meet its sales target of Rs 14,000 crore in FY24, according to reports.

Nifty Midcap 100 and Nifty Smallcap 100 closed flat, underperforming the benchmark index. Nifty Realty and Nifty Media closed higher than their Monday close. According to Trendlyne's sector dashboard, Commercial Services & Supplies was the top-performing sector of the day as it rose 1.4%.

Major Asian indices closed flat or higher, except for Hong Kong’s Hang Seng index closing in the red. European indices trade mixed after opening higher. US index futures trade marginally lower, indicating a cautious start to the trading session. Brent crude oil futures trade in the red after rising 5.8% in the past two trading sessions.

  • Indian Energy Exchange sees a long buildup in its November 30 future series as its open interest rises 9.6% with a put-call ratio of 0.6.

  • Godrej Properties is rising as its Executive Chairperson, Pirojsha Godrej, says the company is on track to meet its sales target of Rs 14,000 crore in FY24, according to reports. The company’s H1FY24 sales bookings grow by 48% YoY to Rs 7,288 crore.

  • Infosys rises as it collaborates with Proximus, a digital services and communications solutions provider from Belgium, for an IT modernization and consolidation project. This agreement will allow Proximus to upgrade its IT stack and increase its offering portfolio. It appears in a screener for stocks with strong momentum.

  • Angel One, Apar Industries and eClerx Services' annual return on capital employed(RoCE) stands at 56.7%, 46.6% and 34.8%, respectively, outperforming their industries by 8.8, 24.5 and 14.8 percentage points.

  • KRChoksey maintains its ‘Buy’ rating on Tata Motors with a target price of Rs 784, implying an upside of 15%. The brokerage expects Jaguar-Land Rover to see an uptick in sales volumes, higher commercial vehicle realisations, and expanding margins in the passenger vehicle segment, led by new launches. It expects the firm’s revenue to grow at a CAGR of 17% over FY23-25.

  • Retailers and white goods manufacturers are concerned about the RBI's revision of the risk weight for unsecured consumer loans, including personal and credit card loans, on November 17. They fear this may impact their margins and are waiting for more clarity on the matter.

  • Indian Renewable Energy Development Agency's Rs 2,150.2 crore IPO gets bids for 2X the available 47.1 crore shares on offer on the first day of bidding. The retail investor quota gets bids for 2X the available 23.5 crore shares on offer.

  • Datamatics Global Services signs a contract with a US-based company to provide digital experience services. The client targets to spend $36 million (approx Rs 300 crore) over five years. The stock shows up in a screener for companies with high TTM EPS growth.

  • Realty companies like Oberoi Realty, Godrej Properties, Prestige Estates Projects, Brigade Enterprises and Mahindra Lifespace Developersare rising in trade. Barring Phoenix Mills, all the other constituents of the broader sectoral index, BSE Realty, are trading in the green.

  • Goldman Sachs raises its Nifty target to 21,800 by the end of 2024, indicating a 10.7% increase over Monday's closing level of 19,694. According to their analysts, returns are likely to be back loaded given the challenging global backdrop and political uncertainty ahead of the 2024 elections.

  • Strides Pharma Science is rising as its subsidiary, Strides Pharma Global Pte, receives approval from the USFDA for its Levetiracetam Oral Solution USP, 100 mg/ml, which is used in the treatment of seizures. The oral solution has a market size of approximately $55 million in the US (as per IQVIA).

  • Motilal Oswalkeeps its ‘Buy’ rating on NMDC and raises its target price to Rs 190 from Rs 135, implying an upside of 11.3%. The brokerage remains optimistic about the company’s prospects, expecting increased volumes, better iron ore prices, and strong demand. It estimates the firm’s revenue to grow at a CAGR of 14.5% over FY23-25.

  • ICICI Lombard General Insurance appoints Sanjeev Mantri as Managing Director and Chief Executive Officer for a period of five years, effective December 1, 2023.

  • According to Bizom, a retail intelligence platform, FMCG sales, excluding staples like edible oils, wheat, and rice, have increased by 4.4% YoY during Diwali. The growth is driven by robust demand in the dairy, home care and confectionary categories. Meanwhile, the beverages segment reports a 4.7% YoY decline in demand.

  • RateGain Travel Technologies is rising after successfully raising Rs 600 crore from qualified institutional buyers through the issue of 93.3 lakh shares at a price of Rs 643 each. The company plans to use these funds for strategic investments and acquisitions. The stock shows up in a screener for companies with improving RoCE over the past two years.

  • Som Distilleries & Breweries is rising as it receives approval from the Excise department to expand its beer capacity at the Hassan plant.

  • HDFC Life Insurance rises as it enters into a corporate tie-up with Karnataka Bank to offer life insurance products to the bank's customers. The company appears in a screener of stocks nearing 52-week high with significant volumes.

  • Incred Wealth downgrades its rating on SBI Cards and Payment Services to 'Reduce' and cuts the target price to Rs 600. The brokerage believes that the company will be adversely affected by the RBI increasing the risk weight on credit card receivables. It also lowers its margin and growth expectations and foresees the gradual rise in cost of funds to harm the company's margins.

  • KEC International rises as it bags orders worth Rs 1,005 crore for railways, transmission & distribution (T&D) and cables projects across India, the Middle East, Europe, Africa and America. It appears in a screener for stocks with improving cash flow and good durability.

  • State Bank of India appoints Vinay Tonse as Managing Director, with his tenure extending till November 30, 2025, reports suggest.

  • Consumer durables stocks like Rajesh Exports, Voltas, Havells India and Titan are rising in trade. All constituents of the broader BSE Consumer Durables index are also trading in the green.

  • Antony Cherukara, CEO of VST Tillers Tractors, says that the company has lowered its growth guidance for tractors to a low single-digit in FY24, from the earlier projection of 10-15%. He anticipates a revenue growth of 20%, with the tiller segment growing by 15-20%. He also highlights the firm’s target to achieve a revenue of Rs 3,000 crore by FY26.

  • Indian Renewable Energy Development Agency raises Rs 643.3 crore from anchor investors ahead of its IPO by allotting 20.1 crore shares at Rs 32 each. Investors include Goldman Sachs, Societe Generale, BNP Paribas Arbitrage, ICICI Prudential Mutual Fund, Nippon Life India, Kotak Mahindra Life Insurance and SBI Life Insurance Co.

  • ABB India is rising as it partners with Titagarh Rail Systems to supply propulsion systems for metro rolling stock projects in India. The partnership has already won orders to design and supply equipment for metro coaches in Gujarat.

  • Container Corp of Indiais rising as it signs a memorandum of understanding with Indraprastha Gasto set up liquified natural gas (LNG) and compressed natural gas (CNG) infrastructure at its terminals. Both companies will also explore the feasibility of transporting LNG through railway rakes from LNG terminals near sea ports to various locations in India.

  • Vascon Engineersis surging as it receives a letter of intent worth Rs 356.8 crore from Pimpri Chinchwad Municipal Corporation (PCMC). The order involves the construction of a general hospital building for PCMC hospital. The company appears in a screenerof stocks with growing net profit and margins

Riding High:

Largecap and midcap gainers today include Oberoi Realty Ltd. (1,406.60, 4.27%), Ashok Leyland Ltd. (178.05, 3.43%) and Zee Entertainment Enterprises Ltd. (251.75, 3.35%).

Downers:

Largecap and midcap losers today include Coal India Ltd. (334.20, -3.90%), Oil And Natural Gas Corporation Ltd. (191.20, -3.36%) and Max Healthcare Institute Ltd. (604.30, -2.78%).

Crowd Puller Stocks

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

Top high volume gainers on BSE included Rallis India Ltd. (235.75, 9.17%), SJVN Ltd. (81.50, 7.31%) and KNR Constructions Ltd. (298.45, 6.06%).

Top high volume losers on BSE were Thermax Ltd. (2,687.75, -3.59%), Gujarat State Petronet Ltd. (272.60, -1.45%) and AIA Engineering Ltd. (3454.60, -0.85%).

Sunteck Realty Ltd. (472.30, 4.08%) was trading at 9.3 times of weekly average. BASF India Ltd. (3,052.40, 3.77%) and EPL Ltd. (198.95, 2.90%) were trading with volumes 9.3 and 7.3 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

44 stocks overperformed with 52 week highs, while 1 stock tanked below their 52 week lows.

Stocks touching their year highs included - Ajanta Pharma Ltd. (1,969.15, -0.13%), Aurobindo Pharma Ltd. (10,27.25, 2.92%) and Bajaj Auto Ltd. (5,685.95, 0.63%).

Stock making new 52 weeks lows included - Alkyl Amines Chemicals Ltd. (2,130.00, -0.07%).

16 stocks climbed above their 200 day SMA including Chemplast Sanmar Ltd. (447.00, 4.35%) and VIP Industries Ltd. (633.35, 3.79%). 2 stocks slipped below their 200 SMA including Sterlite Technologies Ltd. (149.00, -2.36%) and Marico Ltd. (526.60, 0.16%).

 
Trendlyne Marketwatch
Trendlyne Marketwatch
20 Nov 2023, 03:58PM
Market closes lower, Talbros Automotive Components wins orders worth Rs 580 crore

Trendlyne Analysis

Nifty 50closed at 19,694.00 (-37.8, -0.2%), BSE Sensexclosed at 65,655.15 (-139.6, -0.2%) while the broader Nifty 500closed at 17,573.65 (-26.9, -0.2%). Market breadth is even. Of the 2,017 stocks traded today, 976 showed gains, and 999 showed losses.

Indian indices extended the losses from the afternoon session and closed in the red, with the Nifty 50closing at 19,694. The volatility index, Nifty VIX, rose by 2.7% and closed at 12.2 points. Cipla received a warning letter from the US FDA for its Pithampur manufacturing facility.

Nifty Smallcap 100 and Nifty Midcap 100 closed flat with the benchmark index closing lower. Nifty PSU Bank and Nifty IT closed higher than Friday’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 3.6%. 

Most European indices trade in the green except for England’s FTSE 100 and Switzerland’s SMI index trading in the red. US indices futures trade higher indicating a positive start. Former OpenAI CEO and co-founder Sam Altman, who was fired by the board, joins OpenAI investor Microsoft to lead its advanced AI research team.

  • Money flow index (MFI) indicates that stocks like Solar Industries India, Alkem Laboratories, Suzlon Energy and Ratnamani Metals & Tubes are in the overbought zone.

  • Dreamfolks Services rises as it partners with three new airports in Malaysia — Kuala Lumpur, Kota Kinabalu and Kuching international airports. The company appears in a screener of stocks with improving annual net profit.

  • SVF Doorbell (Cayman) sells a 2.5% stake in Delhivery for approx Rs 738.6 crore in a bulk deal on Friday.

  • KRChoksey maintains its ‘Buy’ rating on Ashok Leyland with a target price of Rs 221, indicating an upside of 28.7%. The brokerage expects the firm’s sales volume to continue rising on the back of healthy demand for commercial vehicles, distribution expansion and new launches. It also sees margin expansion driven by softening input costs, higher net realisations and operating efficiencies. The brokerage expects the firm’s revenue to grow at a CAGR of 11.8% over FY23-25.

  • EIH surges over 4.8% and ranks high in Trendlyne's checklist with a score of 78.3%. The stock is in the strong buy zone. It appears in a screener of stocks with high TTM EPS growth.

  • Brent crude oil prices rise on expectations of OPEC+ deepening supply cuts to support prices. This upturn comes after a four-week decline due to fading worries about potential supply disruptions in the Middle East, caused by the Israel-Hamas conflict.

  • Hindustan Unilever sees five analyst target price downgrades and two recommendation downgrades in the past month. Can Fin Homes, NOCIL and ICICI Prudential Life Insurance see four analyst target price downgrades over the same period.

  • Software stocks like HCL Technologies, Persistent Systems, L&T Technology Services, Wipro and Mphasis are rising in trade. Barring Infosys, all the other constituents of the broader sectoral index, Nifty IT, are trading in the green.

  • Tata Investment Corpsurges almost 14% to touch its all-time highof Rs 4,518.3 per share. It has Trendlyne durability and momentum scores above 60. However, the stock is in the 'Sell' zone. It appears in a screenerfor high-return, technically strong value stocks.

  • Companies like TVS Motor, Yes Bank and IDFC First Bank, among others, are set to be included in the S&P BSE 100 index, while Tata Elxsi, Mphasis, Voltas and others will make an exit, during the reconstitution of S&P BSE indices. The changes will be effective from December 18.

  • Tata Consultancy Servicesrises as it signs an agreement with Australia’s primary securities exchange, ASX, to provide a next-generation clearing and settlement platform. This new system, replacing the current one, will cater to the Australian market using TCS’ flagship product, TCS BaNCS, for market infrastructure. It appears in a screenerfor stocks with strong momentum.

  • Persistent Systemstouches a new 52-week high of Rs 6,494, following the launch of a new open-source maintenance service. This will enable firms to keep their open-source software up to date with patches, help with bug fixes and incorporate the latest software releases.

  • Blue Dart Express announces a strategic partnership with India Post to introduce automated digital parcel lockers at selected post offices.

  • Manoj Sanghvi, Business Unit Head at Ratnamani Metals & Tubes, says the company targets to achieve a margin of 16-18% in FY24. He adds that its order book stands at Rs 2,950 crore and 20% of its revenue comes from exports. Sanghvi states that the company aims to achieve a 10% growth in its revenue.

  • Mankind Pharma surges to its all-time high of Rs 2,035 per share as the Financial Times Stock Exchange (FTSE) adds the stock to its All-World, Large-Cap, Total Cap and All-Cap Indices.

  • Geojit BNP Paribas maintains its ‘Buy’ rating on Bank of Baroda and raises the target price to Rs 222 from Rs 217. This implies an upside of 12.1%. The brokerage believes the bank’s net interest income will see robust growth on the back of its expanding loan book. It adds that the firm’s improving asset quality will aid in sustainable long-term growth.

  • Zen Technologies is rising as it bags an order worth Rs 42 crore for the export of simulators. The stock shows up in a screener for companies with strong annual EPS growth.

  • Ashok Atluri, the Managing Director of Zen Technologies, announces the company's revenue targets of Rs 450 crore for FY24 and Rs 900 crore for FY25. He also states that the current order book is at Rs 100 crore and a new export order of Rs 42 crore is set to be executed in the coming 18 months.

  • Orpheus Trading, promoter of 360 One Wam, sells a 0.3% stake in the company on Thursday. It now holds below 0.1%.

  • Newgen Software is rising as its board of directors informs the exchanges about its intent to issue bonus shares to its equity shareholders. The board will meet on November 27 to consider the proposal for the issuance of bonus shares.

  • Exide Industries touches its 52-week high of Rs 286.3 per share as it wins the right to use the 'Chloride' trademark in India from the Delhi High Court. This comes after the company signed a settlement agreement with Vertiv Company Group and Vertiv Energy to dispose off the suits in Delhi High Court.

  • UBS maintains its ‘Buy’ rating on Indian Hotels Co with an upgraded target price of Rs 500. The brokerage notes that the market is doubtful about growth in average room revenue (ARR) and occupancy. However, it remains positive on the overall market supply-demand balance. It believes the company will consistently outperform in room availability, ARR, and occupancy growth.

  • Larsen & Toubro falls as it receives tax penalties of Rs 111.3 crore for 2016 and Rs 127.6 crore for 2017 from the General Tax Authority of Qatar. The company also bags a mega order worth Rs 10,000-15,000 crore for its hydrocarbon business in the Middle East. The company appears in a screener of stocks with growing quarterly net profit and margins.

  • Talbros Automotive Components is falling despite winning multiple orders worth Rs 580 crore from international and domestic clients. The orders are to be executed in the next five years, starting from FY25.

  • Dalmia Bharat Sugar and Industriesfalls as it faces operational disruptions due to farmers' agitation in Kolhapur. The company appears in a screenerof stocks with declining RoE.

  • Oberoi Realtyrises to its all-time high of Rs 1,349 per share as it acquires a 14.8-acre land parcel in Gurugram from Ireo Residencies for Rs 597 crore. The company plans to develop a luxury residential housing project there.

Riding High:

Largecap and midcap gainers today include Adani Wilmar Ltd. (310.70, 5.32%), GlaxoSmithKline Pharmaceuticals Ltd. (1,647.95, 4.52%) and PB Fintech Ltd. (829.45, 3.33%).

Downers:

Largecap and midcap losers today include Solar Industries India Ltd. (6,956.50, -5.87%), Balkrishna Industries Ltd. (2,496.70, -5.56%) and Zomato Ltd. (118.15, -3.31%).

Movers and Shakers

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

Top high volume gainers on BSE included Tata Investment Corporation Ltd. (4,501.75, 15.17%), Latent View Analytics Ltd. (450.50, 9.25%) and ITI Ltd. (278.75, 7.07%).

Top high volume losers on BSE were Rajesh Exports Ltd. (351.95, -6.87%), Aster DM Healthcare Ltd. (338.00, -3.18%) and Chemplast Sanmar Ltd. (428.35, -1.86%).

EIH Ltd. (243.30, 4.65%) was trading at 9.8 times of weekly average. Eureka Forbes Ltd. (519.30, -1.58%) and Sheela Foam Ltd. (1145.10, 3.86%) were trading with volumes 8.2 and 8.1 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

57 stocks hit their 52 week highs, while 2 stocks tanked below their 52 week lows.

Stocks touching their year highs included - Ajanta Pharma Ltd. (1,967.95, 2.42%), Apollo Hospitals Enterprise Ltd. (5,473.95, -0.09%) and Aurobindo Pharma Ltd. (998.10, -0.92%).

Stocks making new 52 weeks lows included - Rajesh Exports Ltd. (351.95, -6.87%) and Adani Wilmar Ltd. (310.70, 5.32%).

12 stocks climbed above their 200 day SMA including Sheela Foam Ltd. (1,145.10, 3.86%) and Just Dial Ltd. (715.00, 2.28%). 7 stocks slipped below their 200 SMA including Sterlite Technologies Ltd. (152.60, -3.14%) and Adani Enterprises Ltd. (2,149.85, -2.67%).

 
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The Baseline
17 Nov 2023
Five Interesting Stocks Today

1. Computer Age Management Services:

This capital markets company has risen by 19.2% in the past week, touching its 52-week high of Rs 2,890 per share on Thursday. In Q2FY24, it posted a 17.1% YoY growth in net profit to Rs 84.5 crore and a 13.5% YoY increase in revenue to Rs 275.1 crore, in line with Trendlyne’s Forecaster estimates. The company appears in screeners of stocks with increasing revenue and net profit over the past four quarters.

The stock’s EBITDA margin has expanded by 150 bps YoY to 58%, aided by improved operational leverage, as its expenses grew more slowly than the revenue. The company’s revenue increased on the back of growth in client additions, transaction volumes, and the SIP book. The company’s assets under management (AUM) also rose by 20.3% YoY, owing to growing interest in mutual funds among retail investors. 

Commenting on the performance, Anuj Kumar, the Managing Director of the company, said, “Our overall assets under service touched a lifetime high of Rs.32.6 lakh crore, and our mutual fund market share is steady at 68.5%. Equity assets grew by 28% YoY on the back of rising share in equity sales alongside steady market movement.”

Post results, Motilal Oswal Financial Services maintains its ‘Buy’ rating on the stock with a target price of Rs 2,950 per share. This indicates a potential upside of 4.1%. The brokerage believes that the company’s mutual fund segment will deliver strong growth in AUM in the long term. It also foresees favourable macro triggers and investments in the non-mutual fund segment boosting revenue growth. It expects the company’s net profit to grow at a CAGR of 13.5% over FY23-25.

2. Eicher Motors:

This automobile manufacturer hit its 52-week high of Rs 3,898 on Friday, marking a 9.1% rise over the past week. The price rise followed the announcement of its Q2FY24 financial results. The company’s net profit has increased by 54.7% YoY to Rs 1,016.2 crore, beating Trendlyne Forecaster’s estimate by 3.7%. It also reported its highest-ever revenue from operations of Rs 4,388.3 crore, a 19.6% YoY increase. In Q2FY24, Royal Enfield registered its highest wholesale performance with close to 2,29,500 motorcycles sold, while VECV also recorded its highest sales of 19,551 units. 

Despite the introduction of premium motorcycles by competitors like Bajaj Auto and Hero Motocorp, in collaboration with international brands Triumph and Harley Davidson respectively, Eicher Motors’  management says that it is confident about their position in the >250cc motorcycle segment. 

In the past month, Royal Enfield launched the new Himalayan 450 and an updated Bullet with a J-series engine. Managing Director Siddhartha Lal said, “Both motorcycles have spurred immense consumer interest across the world.” The management believes that the new Himalayan has the potential to become a “game-changer” in the export market, where it currently maintains its market share (8% in America, 9% in Europe and 9% in EMEA) despite a declining industry trend. 

Eicher Motors is also venturing into electric mobility, having presented an electric motorcycle concept based on the Himalayan Testbed. In addition, VECV has begun delivering electric buses to customers and signed MoUs with leading e-commerce and mobility firms for the supply of over 1000 electric trucks and buses. 

Axis Direct maintains its ‘Buy’ call on Eicher Motors on the back of its strong quarterly performance and new launches, but remains cautious in the face of increasing competition. The company also appears in a screener for stocks with recommendations or target price upgrades by brokers.

3. Manappuram Finance:

This banking and finance company has risen by over 11.2% in the past week, touching a new 52-week high on Thursday. This rise follows its Q2FY24 net profit increasing by 20.4% YoY to Rs 419.9 crore, beating Trendlyne’s Forecaster estimates by 7%. The rise in share price places the company in a screener of stocks with prices above their short, medium and long-term moving averages. The company’s revenue has also increased by 16.5%, driven by its gold loan and microfinance segments. 

The strong performance is led by robust growth in the company’s AUM (up 27% YoY) and net interest income or NII (up 26% YoY). The AUM for the quarter increased by 27% to Rs 38,950 crore, driven by healthy growth in the MFI (microfinance institution), vehicles, and housing segments. Further, its gold loan AUM (which constitutes 53% of the total AUM) expanded by 8% YoY. VP Nandakumar, the Managing Director, said, “The share of non-gold vertical in our total AUM is now at 47%, in line with our objective of achieving a 50-50 portfolio between gold and non-gold verticals.” The company has guided for a gold loan growth of 8-10% YoY in FY24 and is focused on maintaining pricing discipline in gold loans despite high competition. 

Following the results, Axis Securities maintains its ‘Buy’ rating, with a target price of Rs 160. The brokerage believes Manappuram Finance is well-positioned to continue its growth momentum as it focuses on growing its AUM with a sustainable diversified mix, maintaining its stable asset quality. 

4. Power Finance Corporation:

This banking and finance company has risen by 14.1% over the past week till Friday, led by its stellar Q2FY24 earnings released on November 8. The stock outperformed the benchmark Nifty Financial Servicesby 13.7% during the same period. The company’s net profit rose by 27% YoY to Rs 3,847 crore and revenue grew by 16% YoY to Rs 17,964 crore. The top-line growth was driven by an increase in lending in the energy transition segment. The company beat Trendlyne Forecaster’s net profit estimates by 24%. 

According to the management, the company has been able to maintain its market share of 25% in the renewable energy segment due to a sharp rise in disbursals. It noted that the renewable energy space alone has seen a 37% YoY growth in disbursals compared to H1FY23. The company's total disbursals surged by 150% YoY, from Rs 21,790 crore in H1FY23 to Rs 55,562 crore in H1FY24, due to increased lending to renewable energy projects. Higher recoveries and improved diligence in loan disbursals have led to a 98 bps fall in the firm’s Gross NPAs (bad loans) from 4.38% in H1FY23 to 3.4% in H1FY24.

“In the medium to long term, we see existing business to be complemented by opportunities in energy transition and E-mobility,” noted its CMD Parminder Chopra. The firm is looking to maintain its leadership in lending to renewable energy projects, especially in the North Eastern region of India. In the present quarter, the firm has also forayed into airport funding projects, diversifying its revenue sources further.

5. NTPC: 

This electric utilities firm rose 5.7% in the past week following the announcement of its Q2FY24 results. The company’s net profits improved by 38.2% YoY, while its revenue only saw a marginal increase of 1.8% YoY due to lower income from the generation segment. According to Trendlyne’s Technicals, the stock has risen by 15.7% in the past three months. 

The company’s EBITDA margins have expanded by 260 bps on account of lower fuel expenses. In H1FY24, NTPC increased its total capacity by 5.1% YoY, with the majority of it in thermal capacity. This will help the company manage inconsistencies in renewable energy production.

The company has set a capex target of Rs 28,400 crore for FY24, with around 47% of it already utilised in the first half. The stock appears in a screener of companies with improving quarterly net profit and profit margins.

NTPC has also reduced its reliance on imported coal, with production from its captive mines rising by 29.4% YoY and imports dropping by 50% YoY. Despite a 3.4% YoY decrease in average tariff from April to September 2023, the firm offset it by increasing its electricity generation by 5.6% YoY in Q2FY24.

BOB Capital says that the company's strategic shift towards renewable energy makes it a solid player in the green energy sector. Due to this diversification, the brokerage believes that the company is well-positioned in the power generation space. It maintains a ‘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
17 Nov 2023
Market closes lower, Motilal Oswal reiterates its ‘Buy’ rating on Grasim Industries

Trendlyne Analysis

Nifty 50closed at 19,731.80 (-33.4, -0.2%), BSE Sensexclosed at 65,794.73 (-187.8, -0.3%) while the broader Nifty 500closed at 17,600.50 (7.4, 0.0%). Market breadth is holding steady. Of the 1,986 stocks traded today, 973 were on the uptick, and 983 were down.

Indian indices recovered from their day lows and closed marginally lower, with the benchmark Nifty 50 index closing at 19,731.8 points. GMR Airport Infrastructure closed in the green as reports suggested a 19% YoY growth in its total passenger traffic for October, reaching 98.4 lakh. 

Nifty Smallcap 100 and Nifty Midcap 100 closed marginally higher, outperforming the benchmark index. Nifty Pharma and Nifty FMCG closed higher than their Thursday close. According to Trendlyne's sector dashboard, Hardware Technology & Equipment was the top-performing sector of the week as it rose 7.8%.

Major European indices traded flat or higher, despite the Asian indices closing mixed. US index futures traded marginally higher, indicating a positive start to the trading session. Brent crude oil futures traded in the green after falling 4.3% on Thursday and are set to post weekly losses for a fourth straight week.

  • Relative strength index (RSI) indicates that stocks like Suzlon Energy, Alkem Laboratories, Ratnamani Metals & Tubes and Solar Industries India are in the overbought zone.

  • BSEand The New India Assurancetouch their 52-week highsof Rs 2,445 and Rs 155.2 per share, respectively. The former has risen by 22.2% over the past week, while the latter rose 10.5%.

  • Multi Commodity Exchange of India, MTAR Technologies, Cholamandalam Financial Holdings, and PCBL witness a decrease in mutual fund holdings in the past month.

  • Lupin receives approval from the US Food and Drug Administration for its abbreviated new drug application for ganirelix acetate injection. This injection had an estimated annual sales of $84 million in the US till September 2023.

  • Reports suggest that telecom operators are expected to lose Rs 250 crore in SMS revenue to the OTT segment as OTT messaging traffic in India is expected to reach 2,440 crore by 2028.

  • Tata Investment Corp surges over 18.4% to an all-time high of Rs 3,884.8 per share. It ranks high in Trendlyne's checklist with a score of 59.1%. However, it is in the strong sell zone. It appears in a screener of stocks with strong momentum.

  • Motilal Oswal reiterates its ‘Buy’ rating on Grasim Industries with a target price of Rs 2,380. This implies an upside of 20.3%. The brokerage is positive about the firm’s prospects on the back of its viscose staple fibre segment. It also expects its EBITDA margin to expand in the coming quarters. The brokerage expects the company’s revenue to grow at a CAGR of 9.5% over FY23-25.

  • Hardware technology & equipment, software & services and realty sectors rise by more than 4.3% over the past week.

  • Dinesh Khara, Chairman of State Bank of India expects the bank's capital requirements to grow by 55-60 bps due to the increase in credit risk weight to 125%. He also states that the board of directors has approved raising Rs 10,000 crore.

  • Foreign institutional investors invest Rs 5,913.4 crore in the equity market over the past week, according to Trendlyne's FII dashboard. However, index options witness the highest outflow of Rs 86,783.5 crore from foreign investors.

  • GMR Airport Infrastructurerises as reports suggest a 19% YoY growth in its total passenger traffic for October, reaching 98.4 lakh. The company appears in a screenerof stocks with improving annual net profit for the past two years.

  • Reports suggest that India's weightage in the MSCI emerging markets (EM) index is expected to rise by 42 bps to 16.3%, aided by the inclusion of nine new stocks. This change will come into effect from November 30, increasing India's representation to 131 stocks, which is an all-time high.

  • Delhiveryis falling as reports suggest that Softbank is looking to offload its 4% stake worth $150 million (Rs 1,249.2 crore) in the company through a block deal. The company shows up in a screenerfor stocks with low Piotroski scores, implying weak financials.

  • Kotak Mahindra Bank appoints Ashok Vaswani as the Managing Director and Chief Executive Officer, with effect from January 1, 2024.

  • Anup Bagchi, the Chief Executive Officer of ICICI Prudential Life Insurance, expects its average premium equivalent (APE) to reach the industry average by the end of FY25. He also expects retail protection to stabilise at 25-30%.

  • IRB Infrastructure Developers rises to an all-time high of Rs 38.4 after Moody's confirmed the company's good long-term financial rating. Moody's maintains its Ba1 CFR rating, indicating confidence in IRB's financial stability, despite expecting some temporary weakening over the next 12-18 months.

  • Technocraft Industries (India) falls as it discontinues the production of melange yarn in its Murbad, Maharashtra, factory. The segment currently contributes 5.7% to the total revenue. The company appears in a screener of stocks with declining net profit and margins.

  • Apple's Chinese component manufacturer, Luxshare, invests $330 million (approximately Rs 2,747 crore) in Vietnam instead of India. The move comes after the company failed to expand in India due to the political tension with China.

  • HDFC Securities maintains its ‘Buy’ rating on KNR Constructions with a target price of Rs 341, implying an upside of 21.2%. The brokerage remains optimistic about the company’s prospects due to its strong balance sheet, robust execution capabilities and strong order pipeline. It expects the firm’s net profit to grow at a CAGR of 10.4% over FY23-26.

  • SJVN rises as it signs a 200 MW wind power purchase agreement with Solar Energy Corp of India. The project, to be developed by SJVN Green Energy, is expected to cost Rs 1,400 crore and is slated for commissioning by November 2025. The company appears in a screener of stocks with increasing quarterly profits.

  • PSU banks like Union Bank of India, State Bank of India, Punjab National Bank and Bank of India are falling in trade as the Reserve Bank of India increases credit risk weight to 125% from 100%. All constituents of the broader Nifty PSU Bank index are also trading in the red.

  • AGS Transact Technologies wins an order worth Rs 1,100 crore from State Bank of India. This contract, to be executed over the next seven years, involves deploying over 2,500 ATMs as part of the bank's outsourced/managed services portfolio.

  • Brigade Enterprisessurges more than 4% as it signs a joint development agreement (JDA) with Krishna Priya Estates and Micro Labs. The JDA aims to develop 2 million square feet of residential housing in Yelahanka, Bengaluru, with a gross development value (GDV) of Rs 2,100 crore.

  • DCX Systemsrises as its board approves the raising of Rs 500 crore in one or more tranches through public issues, preferential issues, rights issues, private placements, QIP or any combination. The company appears in a screenerof stocks with high TTM EPS growth.

  • JSW Infrastructureis rising as it bags an order worth Rs 4,119 crore from the Karnataka Maritime Board to develop the Keni port in Karnataka. The port will begin operations with a capacity of 44 MTPA and then expand to 117 MTPA by 2035.

Riding High:

Largecap and midcap gainers today include FSN E-Commerce Ventures Ltd. (167.65, 9.25%), Solar Industries India Ltd. (7,390.50, 7.94%) and General Insurance Corporation of India (259.00, 7.05%).

Downers:

Largecap and midcap losers today include Aditya Birla Capital Ltd. (170.95, -5.66%), SBI Cards and Payment Services Ltd. (732.85, -5.14%) and IDBI Bank Ltd. (62.65, -4.50%).

Volume Rockets

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

Top high volume gainers on BSE included Tata Investment Corporation Ltd. (3,908.90, 20.00%), Varroc Engineering Ltd. (554.75, 16.88%) and FSN E-Commerce Ventures Ltd. (167.65, 9.25%).

Top high volume losers on BSE were RBL Bank Ltd. (234.80, -7.76%), Aditya Birla Capital Ltd. (170.95, -5.66%) and SBI Cards and Payment Services Ltd. (732.85, -5.14%).

Delhivery Ltd. (399.75, -3.41%) was trading at 45.1 times of weekly average. Rossari Biotech Ltd. (726.15, -0.34%) and Rites Ltd. (477.25, 6.11%) were trading with volumes 12.1 and 8.7 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

62 stocks hit their 52 week highs, while 1 stock were underachiever and hit their 52 week lows.

Stocks touching their year highs included - Ajanta Pharma Ltd. (1,921.40, -0.45%), Apollo Hospitals Enterprise Ltd. (5,478.95, 2.63%) and Bajaj Auto Ltd. (5,631.50, 1.45%).

Stock making new 52 weeks lows included - Rajesh Exports Ltd. (377.90, -3.76%).

11 stocks climbed above their 200 day SMA including Pidilite Industries Ltd. (2,510.30, 2.08%) and Godrej Consumer Products Ltd. (996.95, 1.75%). 7 stocks slipped below their 200 SMA including Aditya Birla Capital Ltd. (170.95, -5.66%) and State Bank of India (563.05, -3.69%).

 
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The Baseline
16 Nov 2023
By Bhavani Eswar

Retail investors often look to superstar investors for insights on which stocks and sectors are worth investing in. Some even invest in shadow portfolios to follow the strategies of these investors. In this edition of Chart of the Week, we analyse top superstar investors’ net worth over the past four quarters using data from Trendlyne’s Superstar investor dashboard.

Despite the Indian equity market’s high volatility, the net worth of most superstar investors rose over the past year. 

The Indian Volatility Index, Nifty VIX, saw significant fluctuations and increased by 7.6% and 13.5% in December 2022 and January 2023, respectively. This heightened volatility and the muted performance by the Nifty 50 led to many superstars registering negative returns in Q3 and Q4FY23. The Nifty 50 fell by almost 2% in each quarter during this period.  

Superstar investors’ winning formula: low-debt stocks with high returns 

Top holdings drive superstar investors' net worth growth in the past year

Despite the high volatility in Q3 and Q4FY23, the one-year change in most superstar investors’ net worth has increased significantly overall. Their strategy of staying invested and adding investments when markets fell, has helped most superstar investors’ net worth grow in the past year.  

Rekha Jhunjhunwala leads the pack with a 209% surge in her net worth. This steep growth is largely due to inheriting her late husband Rakesh Jhunjhunwala’s portfolio and consistently increasing her stake in Titan. In addition, Titan and Tata Motors, her top two holdings, have risen by 24% and 57% over the past year. 

An interesting trend among these investors is their preference for companies with low or no debt. For instance, Vijay Kedia’s top three holdings, Atul Auto, Tejas Network, and Elecon Engineering Company, which form half of his portfolio, either have minimal debt or are debt-free. This strategy of combining low debt with high revenue growth has yielded results for him. 

Mid and small-cap stocks, known for their higher risk-reward ratio, have delivered high returns to investors like Kedia. Two of his top three holdings have risen by almost 100% over the last year. Kedia’s net worth increased by 65% and 40% in Q1 and Q2FY24, respectively. Overall, his portfolio has grown by 88% over the past year, making him the second-best performer after Rekha Jhunjhunwala.

The portfolios of many superstar investors are dominated by stocks from sectors like retailing, banking and finance, and textile apparel. More than 70% of these portfolios have exposure to these sectors. The average revenue growth for the top holdings of Ashish Kacholia, and Anil Kumar Goel over the past three years has exceeded 100%. Consequently, their net worth has increased significantly, by 38% and 35%, respectively, in the past year.

Monish Parbai and Nemish Shah have seen moderate growth  in their net worth due to the subdued performance of their top holdings like Sunteck Realty and Lakshmi Machine Works. 

Sunil Singhania’s portfolio has 28 stocks spread across sectors like software and services, metals and mining, and consumer durables. Two of his top three holdings have risen by over 100%, contributing to his net worth rising by more than 30% in the past year.

In contrast, two superstar investors, Dolly Khanna and Radhakishan Damani, have reported a decline in net worth over the past year. More than 95% of Radhakishan Damani’s portfolio was invested in Avenue Supermarts which fell by 8% last year. Dolly Khanna, on the other hand, cut her stake in several holdings in Q3 and Q4FY23, leading to a fall in her net worth. 

Superstar investors are not immune to market volatility. But while their portfolios fell in Q3 and Q4FY23, in line with the broader market, have bounced back strongly since then.