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Trendlyne Marketwatch
30 Nov 2023
Market closes higher, Metro Brands enters into a trademark agreement with Foot Locker
By Trendlyne Analysis

Nifty 50 closed at 20,133.15 (36.6, 0.2%), BSE Sensex closed at 66,988.44 (86.5, 0.1%) while the broader Nifty 500 closed at 17,987.95 (83.9, 0.5%), of the 1,990 stocks traded today, 962 were gainers and 987 were losers.

Indian indices closed flat, with the benchmark Nifty 50 index closing at 20,133.2 points. The Indian volatility index, Nifty VIX, dropped marginally and closed at 12.7 points. Metro Brands closed 3.4% higher after it entered into a strategic long-term trademark agreement with the New York-based sports shoe retailer, Foot Locker.

Nifty Smallcap 100 and Nifty Midcap 100 closed in the green, outperforming the benchmark index. Nifty Pharma and Nifty Realty closed higher than their Wednesday close. According to Trendlyne's sector dashboard, Retailing was the top-performing sector of the day as it rose 2%.

Major European indices traded in the green, except for England’s FTSE 100 index, which traded in the red. Major Asian indices closed flat or higher amid mixed global cues. US index futures traded in the green, indicating a positive start to the trading session. Brent crude oil futures extended their gains from Wednesday and traded in the green for a third consecutive trading session.

  • Relative strength index (RSI) indicates that stocks like The New India Assurance, Bajaj Auto, Trent and Bharat Heavy Electricals are in the overbought zone.

  • NBCC (India) rises over 8% in trade and touches a new 52-week high today. The company ranks high on Trendlyne’s Checklist, scoring 59.1%. It also features in a screener of stocks with no debt.

  • Jammu & Kashmir Bank falls amid reported Enforcement Directorate raids at its Srinagar premises. These raids are linked to a Rs 250 crore money laundering case.

  • Delta Corp is rising as it expands into the realty sector through a joint venture with Peninsula Land, committing a capital outlay of Rs 250 crore and holding a majority stake. Peninsula Land also approves the issue of 1.5 crore equity shares and 77.3 lakh compulsorily convertible debentures to Delta Corp, as it will invest Rs 100 crore in the real estate firm.

  • Tata Coffee’s board approves the setting up of an additional freeze-dried coffee facility in Vietnam with a capacity of 5,500 metric tonnes. The company will invest Rs 450 crore in this facility, which will be operational in two years.

  • V-Mart Retail sees three analyst target price downgrades and one recommendation downgrade in the past month. Vedanta, Gujarat Gas and Axis Bank see two analyst target price downgrades over the same period.

  • Healthcare and pharmaceutical companies like Granules India, Alkem Laboratories, Divi’s Laboratories, Lupin and Glenmark Pharmaceuticals are rising in trade. All the constituents of the broader sectoral index, Nifty Healthcare, are trading in the green.

  • Dreamfolks Services rises as it partners with Russia's Grey Wall, offering its customers lounge access in Russia. The company appears in a screener of stocks with growing net profit and margins.

  • Reliance Industries’ retail arm, Reliance Brands, enters into a partnership with France-based SMCP (the parent company of brands like Maje and Sandro). According to the partnership, Reliance Brands will be the distributor of Sandro and Maje in India.

  • Aurobindo Pharmais rising as its subsidiary, Eugia Pharma Specialties, receives final approval from the US FDA to manufacture and market budesonide inhalation suspension, a generic equivalent of the reference listed drug (RLD), Pulmicort Respules. It is used for the treatment of asthma and has a market size of $226.4 million for the year ending September 2023, according to IQVIA.

  • BoB Capital Markets upgrades its rating on Siemensto ‘Buy’ from ‘Hold’ and raises the target price to Rs 4,400 from Rs 3,900. This implies an upside of 21%. The brokerage believes the company’s diverse segment presence makes it well-placed to benefit from the increase in public spending on infrastructure, pent-up private capex and the rising transition to green energy.

  • JSW Infrastructuretrades flat even as its subsidiary, Masad Infra Services, signs a concession agreement with the Government of Karnataka to develop a deep water greenfield port in Keni. The company has also become the guarantor for its unit JSW Terminal UAE's loan of $126 million with Axis Trustee Services.

  • Petronet LNG is rising as 68.5 lakh shares (0.5% equity), amounting to Rs 137.5 crore, change hands in a large trade, according to reports.

  • Thomas Cook plunges almost 5% as its promoter, Fairbridge Capital, plans to sell 3.2 crore shares (a 6.8% stake) of the company through an offer for sale. The board has approved a floor price of Rs 125 per share.

  • Karur Vysya Bank rises with RBI's approval for SBI Mutual Fund to acquire an aggregate holding of up to 9.99% in the bank. It appears in a screener of stocks nearing their 52-week high with significant volumes.

  • Metro Brands is rising as it enters into a strategic long-term trademark agreement with the New York-based sports shoe retailer, Foot Locker. This agreement grants Metro Brands exclusive rights to own and operate Foot Locker’s retail stores in India. The stock shows up in a screener for companies with book value per share improving over the past two years.

  • Rakesh Jhunjhunwala's Rare Enterprises clarifies that it has no connection with the deal in HIM Teknoforge, according to reports. The entity, Rare Enterprise, is not connected to Rare Enterprises or any other group firm of the Jhunjhunwala family.

  • Dharmakirti Joshi, Chief Economist at CRISIL, projects India’s GDP growth at 6.7% for Q2FY24, driven by the services sector. He expects the monsoon's impact to be noticeable in Q3 and notes an increase in trade exposure in recent months.

  • SBI Life Insurance appoints Amit Jhingran as the Managing Director and Chief Executive Officer of the company.

  • Fedbank Financial Services’ shares debut on the bourses at a 1.4% discount to the issue price of Rs 140. The Rs 1,092.3 crore IPO has received bids for 2.2 times the total shares on offer.

  • Gandhar Oil Refinery’s shares debut on the bourses at a 76.3% premium to the issue price of Rs 500. The Rs 500.7 crore IPO has received bids for 64.1 times the total shares on offer.

  • Eicher Motors is rising as Jefferies reiterates its ‘Buy’ rating, with an upgraded target price of Rs 4,650. The brokerage believes that Royal Enfield will see minimal impact from recent launches by competitors. It also highlights the potential for re-rating as confidence in sustaining long-term market share grows.

  • Tata Technologies’ shares debut on the bourses at a 140% premium to the issue price of Rs 500. The Rs 3,042.5 crore IPO has received bids for 69.4 times the total shares on offer.

  • Jupiter Wagons' board of directors approves the qualified institutional placement (QIP) of equity shares worth Rs 700 crore. The board has set a floor price of Rs 331.3 per share.

  • Ultratech Cement nears its 52-week high as it acquires 0.5 MTPA cement grinding assets from Burnpur Cement for Rs 169.8 crore. This acquisition takes the company's total capacity to 133 MTPA.

  • PCBL rises to an all-time high of Rs 271.4 as it forms a joint venture with Kinaltek, with ownership stakes of 51% and 49% respectively. PCBL will initially invest $16 million (approx. Rs 133.3 crore) and plans further commitments totalling $28 million (approx. Rs 233.2 crore) in multiple tranches. This JV is aimed at expanding into the battery application market.

Riding High:

Largecap and midcap gainers today include Supreme Industries Ltd. (4,431.15, 7.52%), General Insurance Corporation of India (319.55, 4.96%) and GAIL (India) Ltd. (131.90, 4.77%).

Downers:

Largecap and midcap losers today include Indian Bank (396.90, -5.23%), Solar Industries India Ltd. (6,288.90, -3.79%) and Adani Total Gas Ltd. (708.80, -3.24%).

Volume Shockers

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

Top high volume gainers on BSE included NBCC (India) Ltd. (76.10, 8.71%), India Cements Ltd. (251.35, 7.85%) and Great Eastern Shipping Company Ltd. (875.55, 7.76%).

Top high volume losers on BSE were Aether Industries Ltd. (779.75, -5.99%), Indian Bank (396.90, -5.23%) and Solar Industries India Ltd. (6,288.90, -3.79%).

Alembic Pharmaceuticals Ltd. (745.80, 3.67%) was trading at 48.0 times of weekly average. APL Apollo Tubes Ltd. (1,687.65, 2.21%) and Metro Brands Ltd. (1,370.05, 3.17%) were trading with volumes 21.8 and 16.6 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

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

Stocks touching their year highs included - Ajanta Pharma Ltd. (1,976.15, 1.39%), Amara Raja Energy & Mobility Ltd. (710.05, 2.17%) and Axis Bank Ltd. (1,074.25, 1.33%).

Stock making new 52 weeks lows included - Aether Industries Ltd. (779.75, -5.99%).

6 stocks climbed above their 200 day SMA including Aegis Logistics Ltd. (371.95, 6.62%) and Archean Chemical Industries Ltd. (584.90, 3.77%). 5 stocks slipped below their 200 SMA including Sterlite Technologies Ltd. (146.20, -3.85%) and Adani Total Gas Ltd. (708.80, -3.24%).

 
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The Baseline
29 Nov 2023
COTW: Global index rebalances open the gates to foreign inflows into domestic markets
By Bhavani Eswar

Foreign capital is vital for emerging markets like India as it provides essential funds for companies, and helps boost shareholder value. The scale and timing of this foreign money are key for domestic investors. 

But while foreign investors can help the economy, they also bring market volatility, since such money is ‘easy come, easy go’, and affects inflation and local currency demand. 

Recent rebalancing in major global indices, like the MSCI and FTSE, creates opportunities for increased foreign inflows. This edition of Chart of the Week focuses on changes in the Morgan Stanley Capital International (MSCI) indices, a global index provider traded on the NYSE. 

India's increased weight in the MSCI Global Index could lead to inflows of up to $1.5 billion

MSCI's indices are critical benchmarks for global fund allocation, guiding investments in stock markets worldwide. These indices are closely monitored by global entities such as asset managers, hedge funds, banks, companies, and insurance firms. Foreign portfolio investors (FPIs) typically use MSCI indices to guide their allocation of passive funds and have already invested$14.64 billion in Indian equities this year.

Notable among the MSCI indices are the All Country World Index, Frontier Markets Index, and Emerging Markets (EM) Index (launched in 1988, India included in 1994). India's weight in MSCI indices is set to double to 16.3%, second only to China's 29.8%, in three years, after the latest rebalancing, which will take effect from November 30.

India’s benchmark indices have outperformed the EM index, yielding 4.7% returns in the year till October, compared to MSCI EM's -2.1% over the same period. Over 10 years, India's annualized returns stand at 8.3%, against MSCI EM's 1.1%.

Record number of Indian stocks in MSCI after latest rebalancing 

Indian stocks’ weightage in MSCI indices set to rise with nine additions

The MSCI EM index determines stock weights based on free-float market capitalization, which are shares that foreign investors can trade. Greater market capitalization means more weight and allocation from investors. Reliance Industries (with a weight of 1.34%), ICICI Bank (0.91%), and Infosys at (0.87%) are among the top 10 stocks in the MSCI EM index.

In its latest quarterly update, MSCI added nine Indian stocks to the index. Key entries include Tata Motors, Polycab India, Macrotech Developers, IndusInd Bank, and One 97 Communications, the parent company of Paytm. Following this, IndusInd Bank, Suzlon Energy, Persistent Systems, and APL Apollo Tubes are expected to get large investments of $290 million, $264 million, $258 million, and $227 million, respectively, according to Nuvama Research. This brings the total Indian stocks in the index to 131. Notably, no existing Indian stocks were removed to include these new ones.

The latest positive review by MSCI EM comes almost a month after foreign brokerage Morgan Stanley upgraded India to the status of ‘most preferred’ emerging market.

Recent changes in FTSE set to bring additional inflows into Indian equities

Recently, FTSE, another global index provider, implemented adjustments in its semiannual index review on September 18, 2023. It added stocks like Reliance Industries, Wipro, and Bajaj Finance to the India index and expects to attract $120 million from just these three stocks. However, Infosys and HCL Tech might see outflows of $35 million and $15 million, respectively, as reported by IIFL Research.

The addition or removal of a stock from an index can influence its share price. When a stock is added, demand may increase, leading to a possible price hike. If removed, it could face selling pressure, decreasing its price. These changes, therefore, can impact individual investors' portfolio values. 

The rise in inflows is expected to come from passive trackers like index-based exchange-traded funds (ETFs) and mutual funds, not necessarily from active fund managers. While this does not guarantee a rise in overall foreign funds, it boosts market sentiment.

 
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Trendlyne Marketwatch
29 Nov 2023
Market closes higher, Havells India launches its brand Lloyd in the Middle East market
By Trendlyne Analysis

Nifty 50 closed at 20,096.60 (206.9, 1.0%) , BSE Sensex closed at 66,901.91 (727.7, 1.1%) while the broader Nifty 500 closed at 17,904.10 (162.3, 0.9%), of the 1,989 stocks traded today, 929 were in the positive territory and 1,021 were negative.

Indian indices extended the gains from the afternoon session and closed in the green, with the Nifty 50 closing at 20,097. The volatility index, Nifty VIX, rose by 4.4% and closed at 12.7 points. Aurobindo Pharma receives US FDA approval to manufacture and market Darunavir Tablets used to treat human immunodeficiency virus infection. The product has an estimated market size of $275 million.

Nifty Smallcap 100 and Nifty Midcap 100 closed higher following the benchmark index. Nifty Bank and Nifty Auto closed higher than Tuesday’s closing level. According to Trendlyne’s sector dashboard, automobile & auto components emerged as the top-performing sector of the day, with a rise of over 1.3%.

Most European indices trade in the green except for England’s FTSE 100 trading in the red. US indices futures trade higher indicating a positive start. The data released by Spain’s National Institute of Statistics indicated that Spain’s CPI inflation for November expanded by 3.2% YoY against estimates of 3.7% growth.

  • Money flow index (MFI) indicates that stocks like Trent, General Insurance Corp, Bajaj Auto and The New India Assurance are in the overbought zone.

  • Infosys gains as its arm, EdgeVerve Systems, bags an order from the Philippines' Bank of Commerce for its Infosys Finacle Suite, aimed at transforming the core banking system. This suite will replace the bank's existing systems. The company appears in a screener of stocks with improving RoA.

  • Torrent Power surges over 12% in trade and touches a new 52-week high today. The company ranks high on Trendlyne’s Checklist, scoring 78.3%. It also features in a screener of companies with zero promoter pledges.

  • Realty, utilities and general industrial sectors rise by more than 10% over the past month.

  • Bandhan Bank, Zensar Technologies, Suzlon Energy, and IDFC witness a decrease in mutual fund holdings in the past month.

  • Bharat Petroleum Corp gains as it declares an interim dividend of Rs 21 per equity share for FY24. The board fixes December 12, 2023, as record date.

  • Capacit'e Infraprojects wins an order worth Rs 101 crore from Tridhaatu Aranya Developers for the Aranya Phase-II project.

  • Antique Stock Broking initiates coverage on Yatra Online with a ‘Buy’ rating and target price of Rs 168. The brokerage believes that the company will benefit from the recovery in corporate travel. It also anticipates an improvement in gross bookings.

  • HDFC Securities initiates coverage on Kaynes Technology India with a ‘Buy’ rating and a target price of Rs 2,850. This implies an upside of 16.6%. The brokerage cites the company's superior execution skills and focus on value addition as key factors for capitalising on rising domestic electronics demand and the Centre's import substitution initiative. It expects the firm’s revenue to grow at a CAGR of 42% over FY23-26.

  • IT stocks like Wipro, Persistent Systems, MphasiSand LTIMindtreeare rising in trade. All constituents of the broader Nifty ITindex are also trading in the green.

  • Aether Industriesis falling as it notifies the exchanges of a fire incident that took place at its manufacturing plant in Surat, Gujarat. The company states that 25 people were injured in the incident, while no casualties were reported.

  • Bharat Heavy Electricals rises as it signs a memorandum of cooperation (MoC) with Electricite de France, a state-owned French company. This MoC will maximise local content in the Jaitapur nuclear power project, set to be established by NPCIL in India. Additionally, the company bags an order worth Rs 2,956 crore from the Ministry of Defence for 16 super rapid gun mount.

  • The total market capitalisation of all BSE-listed companies reaches $4 trillion ( approximately Rs 333 lakh crore), driven by positive sentiments in the Indian equity market.

  • Aurobindo Pharma receives US FDA approval to manufacture and market Darunavir Tablets indicated, used to treat human immunodeficiency virus infection. The product has an estimated market size of $274.8 million.

  • Tata Power is rising as its subsidiary, Tata Power Renewable Energy, receives a letter of award (LoA) to develop a 200 MW firm and dispatchable renewable energy (FDRE) project with SJVN. The project, expected to be completed within 24 months, will take the company's total renewable energy capacity to 8,314 MW.

  • RR Kabel falls amid reports of income tax department searches at its offices nationwide. The company appears in a screener of stocks with declining net profit and margins.

  • Reports suggest that 38.9 lakh shares (0.3% equity) of ICICI Prudential Life Insurance Co, amounting to Rs 214.9 crore, have changed hands in a large trade.

  • Auto stocks like Samvardhana Motherson International, Hero Motocorp, Mahindra & Mahindra and Bosch are rising in trade. All constituents of the broader Nifty Auto index are also trading in the green, helping it to touch its all-time high of 17,377.4.

  • Siemens is falling as its Q2FY24 net profit declines 12.4% YoY to Rs 571.3 crore due to higher raw material, inventory and project buyout costs. However, its revenue rises 24.7% YoY, led by healthy growth in the energy, smart infrastructure and mobility segments. The company has also announced an investment of Rs 416 crore to expand capacity in power transformers and vacuum interrupters.

  • Shares of Indian Renewable Energy Development (IREDA) debut on the bourses at a 56.2% premium to the issue price of Rs 32. The Rs 2,150.2 crore IPO has received bids for 38.8 times the total shares on offer.

  • Rajeev Samant, the Chief Executive Officer (CEO) of Sula Vineyards, reports minimal impact from unseasonal rains on wine grapes and expects a big harvest this year. He adds that table grapes have been affected by the rainfall. Samant also highlights that Q3 is a strong quarter seasonally.

  • Havells India launches its brand Lloyd in the Middle East market. It has partnered with TeknoDome, a distribution company in Dubai, for the desired coverage and reach.

  • Aster DM Healthcare rises to an all-time high of Rs 381.8, as its promoter-owned Alpha GCC is set to buy the current owner's (Moopen family) stake in Aster DM Healthcare FZC for $1 billion (approx. Rs 8,330.1 crore). Post the deal, Alpha GCC Holdings will be jointly owned by Aster India and Fajr Capital advisors in a 35:65 ratio.

  • Zomato is rising as reports suggest that Alipay Singapore, an arm of Alibaba Group, plans to sell its entire 3.4% stake (29.6 crore shares) for Rs 3,300 crore through block deals.

  • PCBL’s board approves the acquisition of a 100% stake in Aquapharm Chemicals, a specialty chemicals company, for Rs 3,800 crore. It believes this acquisition will help its entry into the global specialty chemical segments of water treatment chemicals and oil & gas chemicals. The stock shows up in a screener for companies with low debt.

Riding High:

Largecap and midcap gainers today include Adani Total Gas Ltd. (732.55, 13.71%), Torrent Power Ltd. (941.40, 11.53%) and Muthoot Finance Ltd. (1,415.85, 5.44%).

Downers:

Largecap and midcap losers today include Adani Power Ltd. (433.10, -2.94%), One97 Communications Ltd. (867.35, -2.40%) and Zee Entertainment Enterprises Ltd. (249.70, -2.38%).

Volume Rockets

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

Top high volume gainers on BSE included Aster DM Healthcare Ltd. (395.45, 18.88%), Adani Total Gas Ltd. (732.55, 13.71%) and Torrent Power Ltd. (941.40, 11.53%).

Top high volume losers on BSE were Aether Industries Ltd. (829.40, -8.41%), Linde India Ltd. (5,703.75, -2.71%) and Zee Entertainment Enterprises Ltd. (249.70, -2.38%).

Borosil Renewables Ltd. (441.05, 6.68%) was trading at 24.1 times of weekly average. Minda Corporation Ltd. (373.15, 10.99%) and Graphite India Ltd. (502.15, 5.83%) were trading with volumes 13.9 and 12.9 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

55 stocks hit their 52 week highs,

Stocks touching their year highs included - Adani Power Ltd. (433.10, -2.94%), Axis Bank Ltd. (1,060.15, 3.82%) and Bajaj Auto Ltd. (6,069.95, 1.20%).

9 stocks climbed above their 200 day SMA including Adani Total Gas Ltd. (732.55, 13.71%) and ICICI Bank Ltd. (939.60, 1.52%). 4 stocks slipped below their 200 SMA including Sterlite Technologies Ltd. (152.05, -3.31%) and Devyani International Ltd. (177.75, -0.86%).

 
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Trendlyne Marketwatch
28 Nov 2023
Market closes higher, KRChoksey initiates coverage on Laurus Labs with an ‘Add’ rating
By Trendlyne Analysis

Nifty 50closed at 19,889.70 (95, 0.5%), BSE Sensexclosed at 66,174.20 (204.2, 0.3%) while the broader Nifty 500closed at 17,741.80 (98.3, 0.6%). Market breadth is balanced. Of the 2,019 stocks traded today, 948 showed gains, and 1,033 showed losses.

Indian indices recovered from their day lows and closed in the green, with the Nifty 50closing at 19,870.7 points. The Indian volatility Index, Nifty VIX, rose sharply by 7.3% and closed at 12.2 points. Retail sales for the automotive industry jumped 19% YoY to 37.9 lakh units during the festive period, showed data from the Federation of Automotive Dealers' Association.

Nifty Midcap 100 and Nifty Smallcap 100 closed higher, following the benchmark index. Nifty Metal and Nifty Energy closed sharply higher than their Friday close. According to Trendlyne's sector dashboard, Commercial Services & Supplies was the top-performing sector of the day as it rose 5.1%.

Major Asian indices closed flat or higher, except for Hong Kong’s Hang Seng index closing lower. European stocks traded in the red amid mixed global cues. US index futures traded marginally lower, indicating a cautious start to the trading session. Brent crude oil futures traded in the green after closing lower for a fourth consecutive trading session on Monday.

  • Relative strength index (RSI) indicates that stocks like The New India Assurance, General Insurance Corp of India, Trent and Alkem Laboratories are in the overbought zone.

  • Jubilant Foodworks trades flat as its subsidiary, Jubilant Foodworks Netherlands, plans to acquire the remaining 51.2% stake in Domino's Pizza Eurasia for €73 million (approx. Rs 666.2 crore). This will be funded by a new term loan facility from HSBC bank. The company appears in a screener of stocks with low debt.

  • Aster DM Healthcare is falling as reports suggest that the company will soon announce the sale of its Gulf Cooperation Council (GCC) business, which is valued at an estimated $1 billion.

  • Tata Power Company rises as it plans to invest a capex of Rs 60,000 crore by FY27. Around 45% of this will be used for expansion in the renewable energy segment. The company appears in a screener of stocks with improving RoA.

  • Maruti Suzuki announces plans to increase the prices of its automotive products starting January 1, citing higher commodity prices and inflationary pressures.

  • Kaynes Technology India, Kalyan Jewellers India, and Power Finance Corp’s stock prices increase 237.4%, 231.9% and 206.5% respectively over the past year.

  • Vascon Engineers rises as its board is set to consider a fundraising initiative in its meeting on November 30. The plan includes issuing equity shares through various modes. The company appears in a screener of stocks with strong annual EPS growth.

  • United Breweries is rising as it announces its entry into the Indian draught beer market with the launch of Heineken Silver Draught Beer. The product will initially be launched in Mumbai, Thane and Pune. The stock shows up in a screener for companies with book value per share improving over the past two years.

  • HSBC upgrades its rating on Indian Oil Corp, Bharat Petroleum Corp and Hindustan Petroleum Corp to ‘Buy’ from ‘Hold’ and raises their target prices. The brokerage believes that the strong balance sheets of the companies and the potential for reduced crude prices could improve their short-term profitability.

  • Cello World rises as its Q2FY24 net profit increases by 3.3% to Rs 80 crore due to lower inventory expenses. Its revenue grows by 3.6% YoY, helped by the writing instruments and consumer ware segments. The company appears in a screener of stocks nearing 52-week high with significant volumes.

  • KRChoksey initiates coverage on Laurus Labswith an ‘Add’ rating and a target price of Rs 404, implying an upside of 8.8%. The brokerage expects growth driven by new launches, market share gains in the finished dosage forms (FDFs) segment, and increasing opportunities in the biologic and contract development and manufacturing organisation divisions. It expects the firm’s revenue to grow at a CAGR of 11.6% over FY23-26.

  • PSU banks like Punjab National Bank, Bank of India, Bank of Baroda, Union Bank of Indiaand Punjab & Sind Bankare rising in trade. Barring Indian Bank, all the other constituents of the broader sectoral index, Nifty PSU Bank, are also trading in the green.

  • DB Realty rises as its promoter group sells a 2.9% stake (1.5 crore shares), raising Rs 301 crore. This fund has been infused into the company to fulfil its related party transactions and clear unsecured interest-free loans. This move makes the company debt-free as of November 30. It appears in a screener of stocks with decreasing promoter pledges.

  • Retail sales for the automotive industry jumps 19% YoY to 37.9 lakh units during the festive period, shows data from the Federation of Automotive Dealers' Association. Two-wheeler retail sales increase 21% YoY, and passenger vehicles sales are up 10% YoY.

  • One97 Communications is falling as Berkshire Hathaway sells its entire 2.5% stake in the company for Rs 1,371 crore. The sale has been made through an open market transaction, with Ghisallo Master Fund and Copthall Mauritius Investment acquiring the shares.

  • BSE is rising as Jefferies reportedly initiates coverage on the stock with a ‘Buy’ rating and a target price of Rs 2,700. The brokerage believes that the company will benefit from India’s healthy GDP growth, financialisation of savings, and rising equity market participation. It expects the company’s revenue to grow at a CAGR of 45% over FY23-26.

  • Oil & gas stocks like Adani Total Gas, Hindustan Petroleum Corp, Indian Oil Corp and Bharat Petroleum Corp rise more than 2% in trade. The broader BSE Oil & Gasindex is also trading more than 2% up.

  • Macrotech Developers rises to its all-time high of Rs 917 per share as its Managing Director and Chief Executive Officer (CEO), Abhishek Lodha, reports a reduction in the company's debt by Rs 540 crore in Q2FY24 to Rs 6,730 crore. He also expects the net debt to fall below Rs 6,000 crore by the end of FY24.

  • KPI Green Energy is rising as its subsidiary, Sun Drops Energia, bags orders to establish solar power projects with a total capacity of 4.7 MW under its captive power producer (CPP) segment.

  • Welspun Corp appoints Gerald Mosley as the Chief Executive Officer of its arm, Welspun Tubular LLC, with effect from November 27, 2023.

  • Utilities stocks like Adani Energy Solutions, Adani Power, Adani Green Energy and Torrent Power surge more than 5% in trade. The broader BSE Utilities index is also trading more than 2% up.

  • S&P Global Ratings raises India’s FY24 GDP growth forecast to 6.5%, citing strong domestic momentum. However, it has lowered its FY25 estimate to 6.4% from the earlier 6.9%, anticipating a slowdown due to muted global growth and the delayed impacts of interest rate hikes.

  • Shivalik Bimetal Controls is rising as it signs a memorandum of Understanding (MoU) with a Swiss company, Metalor Technologies International SA. The MoU is for setting up a joint venture to manufacture and sell electrical contacts.c

  • Fortis Healthcare is rising as its subsidiaries enter an agreement to sell Fortis Malar Hospital to MGM Healthcare for Rs 128 crore. Under the agreement, Fortis will divest its business operations along with land and building assets.

  • Netweb Technologies Indiarises sharply as it announces partnership with Nvidia, the company will be a manufacturing partner for Nvidia's Grace CPU chip and GH200 server design. Netweb will be producing ten servers variations under its Tyrone range. The company appears in a screener of stocks with improving cash flow from operations.

  • IRB Infrastructure Developersis rising as its special purpose vehicle (SPV), IRB Lalitpur Tollway, signs a concession agreement worth Rs 4,428 crore with the National Highways Authority of India (NHAI). The concession is for tolling, operation, and maintenance of the NH44 for the next 20 years.

Riding High:

Largecap and midcap gainers today include Adani Total Gas Ltd. (644.20, 19.97%), Adani Energy Solutions Ltd. (865.10, 18.65%) and Adani Power Ltd. (446.20, 12.34%).

Downers:

Largecap and midcap losers today include JSW Energy Ltd. (409.45, -2.73%), Macrotech Developers Ltd. (869.50, -2.46%) and Tata Communications Ltd. (1,683.50, -2.34%).

Volume Shockers

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

Top high volume gainers on BSE included Adani Total Gas Ltd. (644.20, 19.97%), Adani Energy Solutions Ltd. (865.10, 18.65%) and Adani Power Ltd. (446.20, 12.34%).

Top high volume losers on BSE were Raymond Ltd. (1,579.75, -4.17%) and Thermax Ltd. (2,574.55, -1.96%).

Adani Green Energy Ltd. (1,052.80, 12.25%) was trading at 26.0 times of weekly average. HLE Glascoat Ltd. (545.75, 5.68%) and Adani Enterprises Ltd. (2,423.50, 8.90%) were trading with volumes 12.1 and 8.2 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

45 stocks hit their 52 week highs,

Stocks touching their year highs included - Adani Power Ltd. (446.20, 12.34%), Bajaj Auto Ltd. (5,998.15, 1.14%) and Bharat Heavy Electricals Ltd. (156.05, 2.50%).

9 stocks climbed above their 200 day SMA including Adani Energy Solutions Ltd. (865.10, 18.65%) and Adani Enterprises Ltd. (2,423.50, 8.90%). 5 stocks slipped below their 200 SMA including Raymond Ltd. (1,579.75, -4.17%) and Devyani International Ltd. (179.30, -1.59%).

 
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The Baseline
28 Nov 2023
5 stocks to buy from analysts this week
By Satyam Kumar

1. Axis Bank:

HDFC Securities maintains its 'Buy' rating on this bank with a target price of Rs 1,150, indicating an upside of 13%. In Q2FY24, the company reported a revenue growth of 32% YoY to Rs 27,417.5 crore, while its net profit increased by 10.5% YoY. Analysts Krishnan ASV, Neelam Bhatia, and Akshay Badlani are optimistic about its improved deposit quality and aggressive credit card rollout following the Citi acquisition.

Analysts believe that the bank is investing in technology, using initiatives like Siddhi and Sparsh to improve branch productivity and consumer engagement. These efforts are expected to reach full potential in 7-8 quarters, putting the bank in line with its peers. Deposits have shown a steady improvement, with a 550 bps reduction in outflow rates over the past two years. In the past six quarters, the bank has increased lendable deposits by 34% while reducing non-lendable deposits by 17%.

After the acquisition of Citi's wealth business, Axis Bank now holds the third-largest wealth management franchise, with AUM exceeding Rs 4.5 trillion. With a dominant position in merchant acquisition (19% market share in PoS terminals), the bank is expected to maintain steady performance and deliver an RoE of 16-17% over the next few years, according to the analysts. 

2. Coal India:

Motilal Oswal maintains its 'Buy' rating on this coal company with a target price of Rs 380, indicating an upside of 12.3%. In Q2FY24, its net profit increased by 12.5% YoY to Rs 6,799.7 crore and revenue increased by 9.9% YoY. Analysts Alok Deora and Parthiv Deepak Jhonsa are confident in the company's ability to achieve its production target of 780 million tonnes in FY24, driven by robust consumption demand.

Deora and Jhonsa expect Coal India’s e-auction premiums to remain stable at 85-90%, reflecting its goal to produce 1 billion metric tonnes within the next three years. With an expected 7.2% growth in domestic power generation to 1,750 billion units in FY24, analysts foresee increased demand for coal. The company is also diversifying its portfolio by investing Rs 150 billion in setting up 3 GW of solar capacity by FY26.

Deora and Jhonsa believe that the company is well-positioned to capitalise on future growth opportunities. They add that any post-election rise in fuel supply agreement prices could further boost the company's financial performance. 

3. Devyani International:

KRChoksey maintains its ‘Buy’ rating on this quick service restaurant with a target price of Rs 230, implying an upside of 28.7%. In Q2FY24, the firm’s net profit fell by 43.2% YoY to Rs 33.4 crore and revenue increased by 9.6% YoY. Analyst Unnati Jadhav believes that the company faced seasonal weakness and a challenging macroeconomic environment in Q2, leading to lower same-store sales growth (SSSG) and average daily sales (ADS), impacting profitability. However, she notes that its revenue has grown on the back of new store additions, despite unfavourable market conditions.  

Jadhav expects consumer sentiment to improve in the coming quarters and believes that Devyani is well-placed to benefit from this through its aggressive store expansion plans. She adds, “The brand contribution margin should improve going forward due to operating leverage and new store stabilisation.” She also believes that the firm is on track to meet its target of 2,000 stores by 2026. The analyst sees the firm’s expansion into non-metro cities in India as a key positive. She expects Devyani’s revenue to grow at a CAGR of 22.5% over FY23-25.

4. The Ramco Cements:

Geojit BNP Paribas maintains its ‘Buy’ rating on this cement products manufacturer with a target price of Rs 1,119. This indicates an upside of 16.2%. In Q2FY24, the company’s net profit surged to Rs 72 crore (up 23x YoY), while its revenue increased by 30.6% YoY. Analyst Vincent Andrews cites strong volumes and margin improvements in the quarter for the rating. The company has guided for a 20% volume growth in FY24. 

According to the analyst, the firm’s EBITDA margin has sharply improved by 680 bps YoY to 17.1%, mainly due to lower input costs and higher volumes. He notes that despite high capex during FY19-24 (Rs 5,000 crore as against Rs 1,030 crore in FY19), resulting in increased debt, the net debt-to-EBITDA ratio has improved to 3.3x from 4.5x in the last capex cycle. Andrews concludes, “The Ramco Cements’ capacity expansions, coupled with government push on infra and housing, will help future volumes. Lower input costs and a focus on deleveraging post FY24 will support valuation.”

5. Finolex Cables:

Sharekhan maintains its ‘Buy’ rating on this electrical equipment company with a target price of Rs 1,100, indicating an upside of 15.7%. In Q2FY24, the company’s net profit grew by 21% YoY to Rs 165 crore, while its revenue was up by 8.9% YoY at Rs 1,187 crore.

Despite challenges like unseasonal rains affecting discretionary spending and the FMCG segment last quarter, the management considers a margin guidance of 14% realistic, provided raw material prices stabilize. It is also planning a capex of Rs 400 crore in the next 12-18 months to expand capacity across various product categories.

Analysts predict long-term growth for the company, driven by demand in key sectors like automotive, construction, and industrials. They also expect the government's Bharat Net program to boost demand for its communication cables. “Its capacity expansion across all product categories and backward integration in the optical fiber cables (OFC) segment will drive volume and margin growth in the long run,” say the analysts.

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

(You can find all analyst picks here)

 
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The Baseline
24 Nov 2023
2023 sees IPOs rebound, as investors grow optimistic
By Tejas MD

The IPO market is a useful mirror, reflecting the mood of investors. In 2022, it showed caution and hesitation, but 2023 tells a different story – one of recovery.  

In 2022, high inflation and rising interest rates led to a quiet year for Indian IPOs. However, IPOs are back in fashion in 2023 as inflation eases to the RBI's target levels, and investor confidence rises.

The benchmark Nifty 50 index is up 8.8% in 2023. This renewed enthusiasm is visible globally as well. The US indices S&P 500 and Nasdaq 100 have risen by 18.4% and 46.5% in 2023.

Right now, the pessimists are losing money: Michael Burry, the investor known for his ‘big short’ during the 2008 global financial crisis and who had predicted a US market crash in 2023, closed his short positions worth $1.6 billion in the S&P 500 and Nasdaq in September, at a 40% loss. 

India is set to be the fastest-growing major economy in FY24, and many companies are trying to ride the growth wave by launching their IPOs. But how does their performance compare to those in previous years? Let’s explore. 

In this week’s Analyticks, 

  • IPO fever: 2023 sparks a wave of new listings, breaking 2022's quiet spell
  • Screener: IPO stocks listed in the past two years with the highest 1-year jump in share price, plus YoY revenue and profit growth in Q2FY24

2023 sees an IPO bonanza, as markets recover 

The IPO market saw a downturn in pandemic year 2020, with a 14.9% fall in listings. But the recovery in 2021 made it the ‘Year of IPOs’. The number of mainboard IPOs exceeded those of small and medium enterprises (SMEs) in 2021, as larger companies rode positive market sentiment, helped by a 24.12% rise in the Nifty 50.

2023 marks the highest number of IPOs listed in five years  

After a bull run in 2021, 2022 brought volatility, fueled by high inflation, rising interest rates, and geopolitical tensions. As a result, many companies scrapped their IPO plans citing unfavourable market conditions.

But in 2023, the total number of IPO listings has risen sharply, and reached the highest level in the past five years.

Vast majority of IPOs list in the green

Over the past five years, the number of IPOs listing with gains has increased. As of November 20, 2023, 83% of IPOs have listed above their issue prices. 

IPO success rate climbs: Majority list in the green 

The average listing gains of the five most successful mainline IPOs in each year tell an interesting story.

2022 sees dip in the top five IPOs' average listing gains 

The average gain was the highest in 2021 (157.3%) but dropped significantly in 2022, due to investor hesitancy after the underperformance of several high-profile tech IPOs in 2021. 

Only Zomato trades higher than its issue price among new-age tech companies

However, 2023 signals a positive shift. Not only has the number of listed mainline and SME IPOs crossed 2022’s total, the average listing gains of the most successful ones have also improved sharply, from 49.7% to 77.5% in 2023.

Banking and finance IPOs excel in 2023

Two companies from the banking and finance sector, Utkarsh Small Finance Bank and SBFC Finance, are among the top four IPOs this year, thanks to the sector's overall uptrend.

Utkarsh Small Finance Bank rises since its successful listing in July 2023

The most successful IPO of the year, ideaForge Technology from the defense sector, debuted with a 92.7% gain. However, the stock has since fallen sharply and is currently trading only 20% above its issue price. This IPO also had the second-highest total subscription at 106x its offer. The Indian government's defense spending boost has increased investor interest in this sector.

All four IPOs in 2023 garner strong investor interest with high subscription rates 

Netweb Technologies, a software and services company, saw strong interest from qualified institutional buyers (QIBs) and listed at high gains. However, since its listing on July 27, the stock has declined by over 15%.

Stock prices of three out of the four most successful IPOs have now fallen below their listing gains. This trend suggests that investors are cashing in on initial gains to secure profits. Three of these IPOs listed in July 2023, a month when the Nifty 50 closed in the green for the fifth consecutive month. 

Post-2021, investors seem more inclined toward companies with strong fundamentals, especially after loss-making companies were listed at extremely high valuations, but failed to meet expectations.

Barring ideaForge Technologies, which turned profitable in FY22, the other three top IPOs in 2023 have displayed consistent profitability.

ideaForge Technology turns profitable in FY22

With still a month left in the year, India's IPO landscape is bustling with activity. In the coming weeks, five companies, including Tata Technologies and the Indian Renewable Energy Development Agency (IREDA), are set to collectively raise over Rs 7,300 crore. The IPO recovery is a confidence signal in the Indian economy, and more companies are lining up to list in the coming months.

Screener: IPO stocks listed in the past two years with highest 1-year change, and YoY revenue and profit growth in Q2FY24

Kaynes Tech leads in 1-year change % among IPOs listed in the past two years

This screener shows profit-making mainline IPO stocks listed in the past two years that have risen the most over the past year, with YoY revenue and net profit growth in Q2FY24. The screener is dominated by the banking & finance, consumer durables, diversified consumer durables, textiles, apparels & accessories and software & services sectors. 

Major stocks that appear in the screener are Kaynes Technology India, Kalyan Jewellers India, Anand Rathi Wealth, Electronics Mart India, RateGain Travel Technologies and Global Health.

Kaynes Technology India has risen by 322.5% since its listing on the bourses on November 22, 2022. Its net profit grew by 53.8% YoY to Rs 32.3 crore, while revenue increased by 32.1% YoY in Q2FY24. The profit increase is on the back of improvement in the automotive, industrial and aerospace, outer-space & strategic electronics segments.

Kalyan Jewellers comes next with a 238.5% rise over the past year. Listed on March 26, 2021, at Rs 73.9 per share, its net profit and revenue grew by over 27% YoY in Q2FY24. This profit rise was aided by an improvement in operational leverage, new customer additions and new showrooms.

You can find more screeners here.

 
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The Baseline
24 Nov 2023
Five Interesting Stocks Today

1. Narayana Hrudayalaya:

This healthcare facilities firm has been in the news after announcing a Rs 1,000 crore super speciality hospital in Kolkata, leading to a 3.3% rise in its stock on November 21. According to Trendlyne’s Technicals, the stock rose 8.2% over the past week, outperforming the Nifty Healthcare index by 6.6%. The outperformance was due to its lower valuation compared to peers, improved profitability of its newer hospitals post-expansion, and upcoming growth plans in both domestic and Cayman Island hospitals.

In Q2FY24, the company’s revenue improved by 14.3% YoY, backed by rising average revenue per patient. The company’s EBITDA margins increased by 230 bps YoY, driven by increased revenue realization per bed in its domestic and Cayman Island hospitals. The company appears in a screener of stocks with growing quarterly net profit and margins. 

The management plans a capex of Rs 1,140 crore in FY24, having already invested Rs 394 crore in H1FY24. The capex will focus on technological upgrades for better patient care and operational efficiency, as well as development in the Cayman Islands. Revenue growth was observed in new hospitals, with improved EBITDA. 

Prabhudas Lilladher says that the company comes at an attractive valuation compared to its peers. The ramp-up in its Cayman unit, which will be operational in H1FY25, will be key. The broker maintains a ‘buy’ rating on the company.

2. CG Power and Industrials:

This heavy electrical equipment manufacturer’s shares have surged to a record high of Rs 498 each, with a 20% rise on Wednesday alone. The rise follows the Murugappa Group company's announcement that it is seeking approval to set up a semiconductor assembly unit – an area where the Indian government has long aspired to be a key player. 

In its regulatory filing, CG Power said it had applied to the Ministry of Electronics and Information Technology (MeitY), proposing a project with an outlay of Rs 6,592 crore over the next five years. The project is part of a  scheme offering 50% capex support from the Centre.

In Q2FY24, the firm reported a revenue growth of 19.5% YoY to Rs 2,000 crore, beating Trendlyne’s Forecaster estimates by 1.6%. Its net profit also rose by 35.4% YoY to Rs 242 crore. Due to its success in generating cash, the firm appears in a screener of stocks with improving cash flow from operations. According to Trendlyne’s Forecaster, the company’s annual revenue is expected to rise by 17.8% in FY24.

The management has approved capacity expansion in both the industrial and power systems segments at multiple units in Bhopal, with an investment of Rs 35 crore. A similar expansion plan has been approved for units in Nashik, with an investment of Rs 155 crore. Geojit BNP Paribas expects the company to incur a capex of Rs 500 in FY24 and FY25, driven by strong domestic order book. 

3. Welspun Corp:

This iron & steel products company has been on the rise over the past month, touching its 52-week high of Rs 562.9 per share on November 21. The surge is on the back of strong results, new order wins, and approvals for expansion. Its stock price has risen by 25.6% over the past month, featuring in a screener of stocks with prices above short, medium and long-term moving averages.

The stock rose by 8.5% on November 12 after its associate company, East Pipes Integrated Company for Industry (EPIC), signed a contract worth approximately Rs 1,000 crore with Saudi Aramco. The contract involves supplying large-diameter steel pipes to Aramco for the next 13 months. 

The company’s subsidiary, Sintex BAPL, also received approval from the government of Odisha to invest Rs 479.5 crore in a new pipe manufacturing unit in Sambalpur on Wednesday. The facility, set to have a production capacity of 37,520 MT per annum, is expected to become operational in the next three years. 

Welspun Corp also posted a net profit of Rs 384.7 crore in Q2FY24 compared to a net loss of Rs 56.6 crore in Q2FY23. Its revenue surged by 106.7% YoY to Rs 4,059.4 crore, thanks to improved sales in the pipeline and building materials segments. Trendlyne’s Forecaster expects the company’s revenue to grow by 49.9% YoY and net profit to surge by 4.6x YoY in FY24. 

Commenting on its latest order wins, Vipul Mathur, MD and CEO of the company, said, “Our associate company, EPIC in Saudi Arabia has a confirmed order book exceeding two years. The execution of the recent Aramco order, valued at SAR.1.8 billion (approximately Rs 4,000 crore), has started.”

4. Aurobindo Pharma

This pharmaceutical company touched an all-time high of Rs 1,043 on Wednesday (November 22), following the US FDA approval of the anti-cancer drug, Ryzneuta, developed by its subsidiary Acrotech Biopharma. The global market size of the drug is approximately $6 billion. Aurobindo Pharma’s share price has risen by 5.8% in the past week, further boosted by a successful US FDA inspection at the manufacturing facility of another subsidiary, APL Healthcare, which resulted in zero observations. As a result, it features in a screener of stocks with the highest recovery from their 52-week lows. 

Over the past month, the stock has risen by 18.1%, outperforming its industry. Its net profit in Q2FY24 surged by around 85% to Rs 757.2 crore, while the EBITDA margin expanded by 485 bps YoY to 19.4%, driven by low material cost and a favourable product mix. According to Santhanam Subramanian, the Chief Financial Officer, “We are on track to achieve the 20% plus EBITDA margin target set internally for the year.”

Aurobindo Pharma’s revenue has grown by 25.7% YoY, led by healthy performance in the formulations and API (active pharmaceutical ingredients) businesses (up 29% YoY and 20.3% YoY, respectively). During the quarter, the revenue from US formulations (excluding Puerto Rico) increased by 35.7% YoY to Rs 3,385 crore, driven by volume growth, stable demand, and new product launches. 

KR Choksey maintains its ‘Accumulate’ rating on Aurobindo, with an upgraded target price of Rs 1,090. The brokerage is optimistic about the company’s strong pipeline of 40 new products slated for launch in the next 12 months, providing growth opportunities in existing and new businesses. 

5. UNO Minda: 

This auto parts manufacturer hit its all-time high of Rs 694.7 on Friday, marking a rise of 17% since the announcement of its Q2FY24 results on November 7. Its profit has increased by 32.3% YoY to Rs 225 crore, while its revenue grew by 25.5% YoY to Rs 3,630.2 crore. It beat Trendlyne Forecaster’s net profit and revenue estimates by 9.9% and 6%, respectively. Its EBITDA margin improved by 42 bps sequentially to 11.1%, due to a fall in employee and other expenses.

The growth in Q2FY24 has been on the back of continued capacity expansion and market share gains. The company also witnessed growth across all product verticals. The switch segment, which accounts for 28% of total revenue, grew by 26% YoY, while the lighting and casting segments increased by 23% and 21%, respectively. The company features in a screener for stocks with low debt.

For FY24, UNO Minda has planned a capex of around Rs 700-800 crore. The firm commissioned its electric vehicles component and systems plant in Q2FY24. According to ICRA, EV penetration is expected to double from the current 2-3% to 4-6% by FY25, which will potentially increase the company’s orders from original equipment manufacturers.

UNO Minda has approved the setting up of a new greenfield plant with a capacity of 1.2 lakh alloy wheels per month, responding to strong demand as the existing capacity is fully utilised. According to the management, “The new plant will lead to a potential 2-3X growth over the next seven years.”

Axis Securities upgraded its rating on UNO Minda to ‘Buy’, citing continued outperformance and consistent execution capabilities. It forecasts revenue and profit CAGR of 15% and 19% respectively, over FY24-26. 

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

 
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Trendlyne Marketwatch
24 Nov 2023
Market closes flat, JSW Steel completes the last tranche of its Rs 750 crore investment in JSW paints
By Trendlyne Analysis

Nifty 50 closed at 19,794.70 (-7.3, 0.0%) , BSE Sensex closed at 65,970.04 (-47.8, -0.1%) while the broader Nifty 500 closed at 17,643.50 (4.1, 0.0%), of the 1,974 stocks traded today, 893 were in the positive territory and 1,040 were negative.

Indian indices recovered from the day’s low and closed flat, with the Nifty 50 closing at 19,795. The volatility index, Nifty VIX, rose by 0.1% and closed at 11.3 points. Tata Technologies and Flair Writing Industries' IPO gets bids for 35X and 21.9X on the third day of bidding.

Nifty Smallcap 100 closed higher, while the Nifty Midcap 100 closed flat following the benchmark index. Nifty Pharma and Nifty Healthcare closed higher than Thursday’s closing level. According to Trendlyne’s sector dashboard, commercial services & supplies emerged as the top-performing sector of the day, with a rise of over 1.8%.

Most European indices trade in the green except for England’s FTSE 100 in the red. US indices futures trade higher indicating a positive start. The data released by Hamburg Commercial Bank indicated that Germany’s manufacturing PMI in November declined to 42.3 against estimates of 41.2.

  • Berger Paints (India) sees a short buildup in its November 30 future series as its open interest rises 12.5% with a put-call ratio of 0.4.

  • KRChoksey maintains its 'Accumulate' rating on Sonata Software with an upgraded target price of Rs 1,403 per share. This indicates a potential upside of 8.3%. The company's partnerships with Google, SAP, AWS, and Microsoft, among others, will bring more orders. It expects the IT company's net profit to grow at a CAGR of 21.9% over FY23-25.

  • IndusInd Bank partners with Indraprastha Gas (IGL) to facilitate the acceptance of digital rupee, India's central bank digital currency (CBDC). This collaboration aims to allow customers at select IGL stations in Delhi NCR to make payments using the digital rupee. It appears in a screener for stocks with strong momentum.

  • Maruti Suzuki India's board of directors approves the issue and allotment of 1.23 crore shares, amounting to Rs 12,841.1 crore, on a preferential basis to Suzuki Motor Corp. This will facilitate the acquisition of a 100% stake in Suzuki Motor Gujarat.

  • Gandhar Oil Refinery's Rs 500.7 crore IPO gets bids for 64.1X the available 2.1 crore shares on offer on the third day of bidding. The retail investor quota gets bids for 28.9X the available 1.1 crore shares on offer.

  • Ganesha Ecosphere rises more than 4% as its board approves raising Rs 350 crore through qualified institution placements. The company appears in a screener of stocks with improving RoE.

  • Flair Writing Industries' Rs 593 crore IPO gets bids for 46.7X the available 1.4 crore shares on offer on the third day of bidding. The retail investor quota gets bids for 13X the available 72.1 lakh shares on offer.

  • India’s credit card spending rises 25.4% MoM to around Rs 1.8 lakh crore, driven by growth in PoS (point of sale) transactions and e-commerce payments during the festive season.

  • Fedbank Financial Services' Rs 1,092.3 crore IPO gets bids for 2.2X the available 5.6 crore shares on offer on the third day of bidding. The retail investor quota gets bids for 1.8X the available 2.8 crore shares on offer.

  • Tata Technologies' Rs 3,042.5 crore IPO gets bids for 69.4X the available 4.5 crore shares on offer on the third day of bidding. The retail investor quota gets bids for 16.5X the available 1.8 crore shares on offer.

  • GATIrises over 3% as it launches a Surface Transhipment Centre and Distribution Warehouse (STCDW). It is strategically located to reduce transit time and enable businesses to deliver products faster to their customers.

  • Telecommunications equipment, pharmaceuticals & biotechnology and textiles apparels & accessories sectors rise by more than 2.3% over the past week.

  • Jefferies adds Coal India, Honasa Consumer, Eicher Motors, NTPC, HDFC Bank, and ICICI Prudential Life Insurance Co to its India model portfolio, replacing Power Grid Corporation of India, Marico, Maruti Suzuki, and NBFCs. The brokerage has lowered its weightage on NBFCs as the rate cut cycle is expected to be at least six months away.

  • RateGain Travel Technologies trades flat as Aditya Birla Sun Life Mutual Fund sells a 2.1% stake (20.2 lakh shares) in the company. The deal, conducted in the open market, amounts to Rs 11.8 crore. The company appears in a screener of stocks with strong annual EPS growth.

  • Foreign institutional investors withdraw Rs 2,488.7 crore from the equity market over the past week, according to Trendlyne's FII dashboard. Index options also witness the highest outflow of Rs 1.1 lakh crore from foreign investors. meanwhile, mutual funds invest Rs 1,300.3 crore in the equity market over the same period.

  • HDFC Securities initiates coverage on Sai Silks with a ‘Buy’ rating and a target price of Rs 385, implying an upside of 32.8%. The brokerage expects the company to benefit from the growing preference for organised saree retailers over unorganised retailers, citing its diverse price range and expansive presence. It projects a CAGR of 40.2% in net profit.

  • Morgan Stanley has an ‘Overweight’ rating on Zomato, with a target price of Rs 140. The brokerage notes the growing engagement of mature users and increased online spending, especially in the quick commerce segment. It also expects consistent performance in the food delivery business.

  • JSW Steel rises as it completes the last tranche of its Rs 750 crore investment in JSW paints. This last instalment involves an investment of Rs 75 crore. With this acquisition, JSW Steel holds a 12.8% stake in JSW Paints.

  • Healthcare stocks like Dr Lal Pathlabs, Lupin, Syngene International and Metropolis Healthcare are rising in trade. Barring Apollo Hospitals Enterprise, all constituents of the broader Nifty Healthcare index are also trading in the green.

  • Prestige Estates Projects launches a new residential project, Prestige Glenbrook, in Bangalore. It has a developable area of 0.7 million square feet and a revenue potential of Rs 550 crore. It appears in a screener for stocks with strong momentum.

  • One97 Communications (Paytm) declines over 2% as 1.6 crore shares (2.56% equity), amounting to Rs 1,441 crore, reportedly change hands in a block deal.

  • Lupin rises as it receives tentative US FDA approval for its abbreviated new drug application of Canagliflozin Tablets, 100 mg and 300 mg. The drug is used to treat adults with type two diabetes and has an estimated annual sales of $561 million in the USA.

  • Smallcap World Fund Inc buys a 2.7% stake in Home First Finance for approx Rs 208.5 crore in a bulk deal on Thursday.

  • NMDC is rising as it increases the prices of iron ore and fines by Rs 200 per tonne to Rs 5,400 and Rs 4,460 per tonne, respectively, effective from November 23. The stock shows up in a screener for companies with low debt.

  • Apar Industries opens its qualified institutional placement issue to raise Rs 1,000 crore at a floor price of Rs 5,540.3 per equity share. The company shows up in a screener for stocks with zero promoter pledges.

Riding High:

Largecap and midcap gainers today include General Insurance Corporation of India (307.10, 16.46%), Life Insurance Corporation of India (677.65, 9.71%) and Hindustan Aeronautics Ltd. (2,240.30, 4.38%).

Downers:

Largecap and midcap losers today include CG Power and Industrial Solutions Ltd. (429.15, -6.77%), One97 Communications Ltd. (892.55, -3.34%) and Mahindra & Mahindra Financial Services Ltd. (263.90, -3.03%).

Crowd Puller Stocks

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

Top high volume gainers on BSE included The New India Assurance Company Ltd. (209.00, 19.98%), General Insurance Corporation of India (307.10, 16.46%) and Life Insurance Corporation of India (677.65, 9.71%).

Top high volume losers on BSE were One97 Communications Ltd. (892.55, -3.34%), Asahi India Glass Ltd. (566.30, -1.59%) and Equitas Small Finance Bank Ltd. (94.35, -0.79%).

DCM Shriram Ltd. (938.55, 4.11%) was trading at 20.5 times of weekly average. Sun Pharma Advanced Research Company Ltd. (273.05, 6.14%) and Data Patterns (India) Ltd. (1,979.65, 6.87%) were trading with volumes 11.6 and 9.7 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

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

Stocks touching their year highs included - Bajaj Auto Ltd. (5,930.30, 0.09%), Bharat Heavy Electricals Ltd. (152.25, 6.65%) and Blue Star Ltd. (1,009.90, 3.38%).

Stock making new 52 weeks lows included - Polyplex Corporation Ltd. (1,017.40, -0.07%).

11 stocks climbed above their 200 day SMA including Life Insurance Corporation of India (677.65, 9.71%) and Sterling and Wilson Renewable Energy Ltd. (340.15, 2.92%). 6 stocks slipped below their 200 SMA including VIP Industries Ltd. (614.65, -1.51%) and Marico Ltd. (523.65, -1.37%).

 
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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