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The Baseline
08 Nov 2023
By Akshat Singh

In the world of stock markets, identifying bullish sectors can provide a compass to finding great investments. Sector analysis is essential to diversify your investments, make smart investment decisions, and understand broader trends.

In this edition of Chart of the Week, we examine Trendlyne’s sector dashboard to find the top-performing sectors. For each sector, we analyze the companies contributing to the sector's rise. 

Telecom equipment and fertilizer sectors rise on government subsidies and schemes

The telecommunications equipment sector saw an 85.3% share price growth in the past quarter. A primary driver for this surge was ITI, accounting for 90.5% of the sector’s rise, thanks to a 155.3% quarterly increase in its stock price. 

ITI's expansion into laptop and micro PC manufacturing holds the potential for long-term growth, provided it can establish itself as a reliable and competitive player in this market. 

The company's track record of benefiting from government initiatives and contracts, and opportunities stemming from global supply chain disruptions have further increased its stock price in the past quarter.

Next up, we have the fertilizers sector, which has risen 24.5% in the past quarter. This can be attributed to the Centre’s subsidy schemes worth Rs 3,70,000 crore. The Israel-Hamas conflict has also led to an increase in commodity prices due to concerns about the global potash fertilizer supply chain. Ashdod Port, a significant export hub for Israel's potash, is currently operating in emergency mode due to the conflict. This situation places approximately 3% of the world's potash supply at risk, according to Bloomberg. Other major contributors to this sector’s performance  were The Fertilisers and Chemicals Travancore and Gujarat Narmada Valley Fertilizers & Chemicals, with contributions of 76.1% and 6.4%, respectively to sector growth, and quarterly stock price increases of 54.5% and 19.9%.

Realty sector rises, helped by expansion and new launches

We now turn to the realty sector, which has surged by 23.2% in the past quarter. This can be attributed to a positive shift in consumer sentiment, as per Knight Frank’s NAREDCO real estate sentiment index. The optimism of real estate developers primarily stems from the RBI's decision to refrain from raising interest rates for the fourth time and a spike in residential demand during the festive season. REA India says, “Post-pandemic, the demand for home ownership and larger homes, thanks to hybrid working models, have offset concerns about high interest rates.”  

Major contributors to this sector's growth were DLF and Macrotech Developers. These stocks made contributions of 24.2% and 14.2%, respectively, owing to their quarterly stock price increases of 21.6% and 22.2%. DLF hit a new 52-week high of Rs 525.8 on September 5, following the announcement of its plans to launch a series of residential projects worth nearly Rs 20,000 crore across India during this fiscal year. Macrotech Developers acquired seven land parcels to develop housing projects worth Rs 14,300 crore in Mumbai, Pune, and Thane.

Gems & jewellery outshines textile, apparel and accessories

The textiles, apparels & accessories sector rose 18.6% in the past quarter, led by the gems and jewellery industry’s impressive growth of 20.7%. Titan Company, with a 28.8% contribution to the sector's growth and Kalyan Jewellers India, contributing 23.8%, saw their stock prices surge by 12.1% and 87.8%, respectively, over the past quarter. 

Meanwhile, the media sector also performed well, with a 16.9% increase in the past quarter. This achievement was made possible through contributions from Sun TV Network (35.2%) and Zee Entertainment Enterprises (23.1%), driven by quarterly stock price rises of 24.7% and 16%, respectively. Notably, PwC expects the Indian media and entertainment sector to grow at a CAGR of 9.5%, ultimately reaching a market value of $73.6 billion by 2027. PwC expects subscription service revenues to grow at a 13% CAGR, reaching $2.6 billion, while ad-supported services (AVOD) are poised for faster growth from a smaller base.

The telecom services sector also rose by 13.4% in the past quarter, driven by significant contributions by Vodafone Idea (49.1%) and Bharti Airtel (36.4%). During this quarter, Vodafone Idea's stock jumped by 74.5%, while Bharti Airtel saw a 6.9% rise. On November 2, Vodafone Idea increased by 7.4%, following reports of HDFC Bank granting a loan of Rs 2,000 crore to the company to assist in covering license fees and 5G spectrum fees.

Construction sector soars on the back of strong order book and new orders

The cement and construction sector saw a 11.3% increase in the past quarter, thanks to Larsen & Toubro and UltraTech Cement making contributions of 35.4% and 9.2%, respectively. Their share prices rose by 14.1% and 6.1% over the quarter. Larsen & Toubro's robust performance can be attributed to its strong order book and the acquisition of new orders. In H1FY24, the company secured orders worth Rs 1.5 lakh crore, and by September 2023, its order book rose by 21.6% YoY to Rs 4.5 lakh crore.

The transportation sector rose by 10.4% in the past quarter. This increase was primarily fueled by contributions of 43.5% from JSW Infrastructure and 11.8% from Cochin Shipyards, as their respective quarterly stock prices surged by 58.4% and 48.2%. On November 4, JSW Infrastructure's stock price climbed by 9.8%, following its entry into the container train operation business with the acquisition of Sical Multimodal and Rail Transport.

Finally, we move to the general industrials sector, which posted a 10.3% increase in the past quarter. This surge can be primarily credited to Suzlon Energy and Solar Industries India making notable contributions of 29.6% and 14.7%, respectively. Their stock prices rose by 100.3% and 48%, respectively. Suzlon Energy's upward trajectory is fueled by a robust order book, which includes the construction of wind power plants of 1.5 GW capacity and strategic debt reduction plans

 
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The Baseline
07 Nov 2023
Five analyst picks this week with high upside
By Satyam Kumar

Five analyst picks this week with high upside

This week, we take a look at analyst picks with high upsides in target price.

1. Jindal Steel & Power: 

ICICI Securities maintains a ‘Buy’ call on this steel products manufacturer with a target price of Rs 795, indicating an upside of 26.2%. In Q2FY24, the company announced a nearly sevenfold YoY rise in net profit to Rs 1,387.8 crore, while its revenue fell by 9.2% YoY. “The performance missed our estimates but was in line with the consensus,” say analysts Amit Dixit, Mohit Lohia and Pritish Urumkar. 

The analysts believe that opportunistic export sales drove the sales volume. Despite earnings not reaching the anticipated levels, they remain optimistic about the long-term prospects of the company due to the expansion of its Angul-II capex plan to Rs 31,000 crore with a delayed commissioning in Q4FY25. The analysts say, “Our belief is premised in the company’s India-centric focus and steel-focused growth plan, both without pushing leverage higher.” The analysts expect EBITDA of Rs 11,049.3 crore for FY24, growing to Rs 14,507.8 crore in FY25. 

2. Aether Industries: 

HDFC Securities retains its ‘Buy’ call on this specialty chemicals manufacturer with a target price of Rs 1,200. This indicates an upside of 35.6%. In Q2FY24, the company’s net profit grew by 34.4% YoY to Rs 36.7 crore, while its revenue grew by 21.7% YoY to Rs 178.3 crore. Analysts Nilesh Ghuge, Harshad Katkar and Akshay Mane say, “EBITDA and profit exceeded our estimates by 14% and 19%, respectively, mainly due to lower raw material costs and higher other income.”

The analysts believe that the demand slowdown in the agrochemical industry was due to inventory destocking at the customer end and reduced realisations across products. They add that Chinese companies flooding the Indian market with aggressively priced products has adversely impacted the performance of domestic players. 

Despite these challenges, the analysts remain optimistic about the company, on the back of capex-led growth, advanced research and development capabilities, technocratic management, market-leading position in most of its products, strong product pipeline, and marquee customer base.

3. Carborundum Universal: 

Prabhudas Lilladher maintains its ‘Buy’ rating on this other industrial products manufacturer but lowers its target price to Rs 1,408 from Rs 1,482. This implies a still high upside of 31.8%. In Q2FY24, the company’s net profit rose by 14.5% YoY to Rs 101.9 crore and revenue increased by 1.7% YoY. Analysts Amit Anwani and Nilesh Soni attribute the slowdown in revenue growth to “a softening of demand in Europe, Chinese companies dumping products, and the forex impact”. While the ceramics and abrasive segments saw healthy growth, the electrominerals segment dragged due to negative forex movement. 

Even though the management lowered its revenue guidance for FY24 to 5% from 10%, the analysts remain positive on the firm’s prospects. Anwani and Soni believe that the company will see healthy growth in the long term on the back of its new product launches, better market reach, strong exports, and improvement in its recently acquired subsidiaries. The analysts expect the company’s revenue to grow at a CAGR of 11.8% over FY23-26.

4. Bharti Airtel:

Axis Direct maintains its ‘Buy’ rating on this telecom services provider and raises its target price to Rs 1,155 from Rs 1,025. This indicates an upside of 23.3%. Analyst Omkar Tanksale remains optimistic about the stock despite its Q2FY24 net profit and revenue missing the brokerage’s estimates by 46% and 4% respectively. The company’s net profit has declined by 37.5% YoY and revenue grew by 7.3% YoY. Its bottom line was affected by a one-time charge of Rs 1,570 crore, as it paid interest on an additional tax provision related to the Supreme Court’s new ruling on variable license fees. While revenue was impacted “by the devaluation of Nigeria's Naira and other currencies during the period,” Tanksale added.  

However, the analyst adds that the company’s EBITDA margins beat his expectations, thanks to an increase in 4G conversions and a better service mix. 

Tanksale remains optimistic about the telecom giant due to robust growth in its 4G and 5G customer base. He believes that the company will continue to gain market share in the long term, driven by its deep rural penetration, strong subscriber growth, and increasing average revenue per user. He expects the firm’s profit to grow at a CAGR of 13.1% over FY23-25. 

5. Mahanagar Gas: 

Motilal Oswal maintains its 'Buy' rating on this non-electrical utilities company with a target price of Rs 1,310, indicating an upside of 24.3%. Analysts Abhishek Santosh Nigam, Aman Chowdhary, and Rohit Thorat are optimistic, with growth set to accelerate in the industrial and commercial piped natural gas segment over the next two years, primarily because CNG is now 50% cheaper than petrol and 20% cheaper than diesel. In Q2FY24, the company’s net profit grew by 106.4% YoY to Rs 338.5 crore, while its revenue grew by 10.6% YoY.

Nigam, Chowdhary, and Thorat believe that the total volumes met their estimates. They foresee rapid growth in the gas segment over the next two years. The company has implemented consumer-friendly measures, such as removing the take-or-pay clause and offering a discount guarantee to new, heavy-usage customers. The analysts believe that the company is encouraging CNG volume growth in the commercial vehicle segments through incentives like free fuel cards with new vehicle purchases, based on gross vehicle weight.

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

(You can find all analyst picks here)

 
Trendlyne Marketwatch
Trendlyne Marketwatch
07 Nov 2023
Market closes flat, Alkem Laboratories' Q2 net profit surges by 87.6% YoY

Trendlyne Analysis

Nifty 50closed at 19,406.70 (-5.1, 0.0%), BSE Sensexclosed at 64,942.40 (-16.3, 0.0%) while the broader Nifty 500closed at 17,187.80 (28.4, 0.2%). Market breadth is in the green. Of the 1,999 stocks traded today, 1,043 were in the positive territory and 919 were negative.

Indian indices recovered from the day’s low and closed flat, with the Nifty 50closing at 19,407. The volatility index, Nifty VIX, rose by 0.7% and closed at 11.2 points. Cochin Shipyard’s net profit grew by 60.9% YoY to Rs 181.5 crore in Q2FY24. Revenue rises by 48% YoY on the back of an increase in revenue from the shipbuilding and ship repair segments.

Nifty Midcap 100 and Nifty Smallcap 100 closed in the green, with the benchmark index closing flat. Nifty Pharma and Nifty Bank closed higher than Monday’s closing level. According to Trendlyne’s sector dashboard, healthcare equipment & supplies emerged as the top-performing sector of the day, with a rise of over 1.9%.

Most European indices trade in the red except for Switzerland’s SMI trading flat. US indices futures trade lower, indicating a negative start. Reserve Bank of Australia hiked interest rates by 25 bps to 4.35%, citing a lower-than-expected decline in inflation.

  • Indian Oil Corp sees a long buildup in its November 30 future series as its open interest rises 14.6% with a put-call ratio of 1.1.

  • Alkem Laboratories is rising as its Q2FY24 net profit surges by 87.6% YoY to Rs 620.5 crore, led by a sharp decline in inventory costs and a deferred tax credit of Rs 125.9 crore. Its revenue also increases by 11.7% YoY to Rs 3,440.2 crore. The stock shows up in a screener for companies with low debt.

  • Cochin Shipyard surges over 4% as its Q2FY24 net profit climbs 60.9% YoY to Rs 181.5 crore. Revenues rises by 48% YoY on the back of increased activity in shipbuilding and repair. The board has also approved a 1:2 stock split, dividing each Rs 10 share into two Rs 5 shares.

  • Trent rises to an all-time high of Rs 2,427.1 as its Q2FY24 net profit jumps 152.3% YoY to Rs 234.7 crore. Its revenue grows by 52.7% YoY, aided by growth in the garments and emerging categories. The company appears in a screener of stocks with strong annual EPS growth.

  • Amit Mahajan, Business Development Director at Paras Defence & Space Technologies, affirms the FY24 revenue growth forecast of 30-40%, with expectations of similar levels into FY25. The current order pipeline exceeds Rs 2,000 crore. He highlights the growing focus on the space sector and expects opportunities to exceed Rs 1,000 crore by FY25.

  • ICICI Securities downgrades Crompton Greaves Consumer Electricals to ‘Add’ from ‘Buy’ and lowers its target price to Rs 320 from Rs 350, implying an upside of 13%. The brokerage cites near-term weakness in the lighting and kitchen appliances (Butterfly) segments for the revision. However, it remains optimistic about the firm’s new strategy to focus on improving innovation, supply chain and digital presence.

  • Zydus Lifesciences is rising as its Q2FY24 net profit surges by 53.2% YoY to Rs 800.7 crore on the back of lower raw material costs, while its revenue rises 9.1% YoY. Sharvil Patel, MD of Zydus Lifesciences, says, “We are on track to meet our growth objectives for the year. Going ahead, differentiated launches in the US and a rebound in India business growth, which was constrained by delayed seasonality, will be critical drivers.”

  • ASK Automotive's Rs 833.9 crore IPO gets bids for 0.4X the available 2.1 crore shares on offer on the first day of bidding. The retail investor quota gets bids for 0.6X the available 1 crore shares on offer.

  • Protean eGov Technologies' Rs 490.3 crore IPO gets bids for 3.2X the available 43.8 lakh shares on offer on the second day of bidding. The retail investor quota gets bids for 3.9X the available 21.1 lakh shares on offer.

  • Tata Group is considering the sale of Voltas' home appliance business, according to reports. The group anticipates challenges in expanding the business in a competitive market. However, considerations are at an early stage.

  • ESAF Small Finance Bank's Rs 463 crore IPO gets bids for 73.2X the available 5.8 crore shares on offer on the third day of bidding. The retail investor quota gets bids for 17X the available 2.8 crore shares on offer.

  • Bajaj Financefalls as its board approves a floor price of Rs 7,533.8 per share for its qualified institutional placements (QIP). The company plans to raise Rs 8,800 crore via the QIP issue.

  • Sobhais falling as its Q2FY24 net profit falls 22.2% YoY to Rs 14.9 crore on the back of higher land purchase costs, sub-contractor costs and employee expenses. Its revenue rises by 11.1% YoY to Rs 741.2 crore driven by steady demand for housing.

  • Rajesh Jain, CFO of R R Kabel, says the company's wires & cables business has grown by 24% YoY in H1. He adds that the company targets a volume growth of over 20% in FY24 and that it can achieve a revenue of over Rs 6,500 crore at the current run rate. Jain highlights that the FMEG segment's revenue will be around Rs 780 crore in FY24.

  • Keystone Realtors' subsidiary, Kingmaker Developers, acquires a 100% stake in Real Gem BuildTech for a cash consideration of Rs 231.4 crore.

  • Larsen & Toubro's construction arm secures a contract worth Rs 1,000 to 2,500 crore for water and effluent treatment projects from Odisha's Water Resources Department. The deal involves executing mega lift irrigation schemes.

  • Realty stocks like Macrotech Developers, Swan Energy, Sobha, Oberoi Realty and Godrej Properties are falling in trade. Barring Mahindra Lifespace Developers and Prestige Estate Projects, all the other constituents of the broader sectoral index, Nifty Realty, are trading in the red.

  • Emami is falling as its Q2FY24 net profit drops by 3.1% YoY to Rs 178.5 crore due to higher employee expenses and inventory costs. Its revenue rises by 6.3% YoY, with a strong 12% rise in international markets, while domestic market increases by 4% YoY. The stock shows up in a screener for companies with high promoter stock pledges.

  • Global crude oil prices rise after Saudi Arabia and Russia reaffirm that they would continue with the additional voluntary oil supply cuts till the end of the year.

  • Quess Corp surges over 4% as its net profit grows by 47% QoQ to Rs 71.9 crore in Q2FY24. Revenue rises by 3.2% QoQ, owing to gains in the workforce management, operating asset management and global technology solutions segments. It shows up in a screener of stocks where mutual funds have increased their shareholdings in the past quarter.

  • Hindustan Petroleum Corp is rising as it posts a net profit of Rs 5,826.9 crore in Q2FY24, compared to a net loss of Rs 2,475.7 crore in Q2FY23. However, revenue declines by 10% YoY due to reduced gains from downstream petroleum. It features in a screener of undervalued growth stocks.

  • Honasa Consumer's shares debut on the bourses at a 1.9% premium to the issue price of Rs 324. The Rs 1,701.4 crore IPO has received bids for 7.6 times the total shares on offer.

  • Jefferies maintains its 'Buy' rating on Varun Beverages with an upgraded target price of Rs 1,100. The brokerage notes an uptick in the company's volume growth to the mid-teens in Q3CY23, after a muted trend in the previous quarter. It adds that the plan to increase capacity shows the management's optimism on growth.

  • Media stocks like Zee Entertainment Enterprises, Dish TV India, DB Corpand Saregama Indiaare falling in trade. All constituents of the broader Nifty Mediaindex are also trading in the red.

  • KPR Millsis falling despite its board of directors approving a capex of Rs 400 crore for capacity addition. The company plans to increase garment production capacity to 37,000 MT from 25,000 MT and solar power capacity to 37 MW from 12 MW.

  • Adani Energy Solutionsrises as its Q2FY24 net profit increases by 33.8% YoY to Rs 275.9 crore. Its revenue grows by 13%, aided by its generation, transmission & distribution and trading businesses. The company appears in a screenerof stocks with growing net profit and margins.

  • FSN E-Commerce Venturesis rising as its net profit grows by 42.3% YoY to Rs 5.8 crore in Q2FY24. Its revenue also increases by 22% YoY on the back of improved sales in the beauty & personal care and fashion segments. Its EBITDA margin expands by 18 bps YoY, owing to lower raw material costs. It appears in a screenerof stocks with low debt.

Riding High:

Largecap and midcap gainers today include Trent Ltd. (2,424.00, 8.54%), Solar Industries India Ltd. (5,940.00, 6.34%) and Hindustan Petroleum Corporation Ltd. (278.65, 6.31%).

Downers:

Largecap and midcap losers today include Godrej Properties Ltd. (1,764.60, -3.23%), Oberoi Realty Ltd. (1,210.55, -2.78%) and Atul Ltd. (6,522.05, -2.78%).

Volume Rockets

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

Top high volume gainers on BSE included Jyothy Labs Ltd. (401.40, 8.69%), Trent Ltd. (2,424.00, 8.54%) and Ratnamani Metals & Tubes Ltd. (3,100.00, 7.16%).

Top high volume losers on BSE were Avanti Feeds Ltd. (394.95, -3.03%), Bharat Forge Ltd. (1,054.80, -1.94%) and Alkyl Amines Chemicals Ltd. (2,178.00, -1.53%).

Quess Corp Ltd. (437.80, 2.53%) was trading at 13.8 times of weekly average. Bikaji Foods International Ltd. (519.55, 4.09%) and FSN E-Commerce Ventures Ltd. (149.25, 1.29%) were trading with volumes 8.1 and 7.5 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

33 stocks took off, crossing 52 week highs,

Stocks touching their year highs included - Bombay Burmah Trading Corporation Ltd. (1,457.45, 3.15%), Colgate-Palmolive (India) Ltd. (2,116.80, 0.04%) and Crisil Ltd. (4,350.35, -0.76%).

13 stocks climbed above their 200 day SMA including TeamLease Services Ltd. (2,468.75, 4.12%) and Gujarat State Petronet Ltd. (279.20, 2.42%). 9 stocks slipped below their 200 SMA including PNC Infratech Ltd. (324.10, -2.66%) and Marico Ltd. (524.45, -1.79%).

 
Trendlyne Marketwatch
Trendlyne Marketwatch
06 Nov 2023
Market closes higher, Larsen & Toubro bags order worth Rs 2,500-5,000 crore

Trendlyne Analysis

Nifty 50closed at 19,411.75 (181.2, 0.9%), BSE Sensexclosed at 64,958.69 (594.9, 0.9%) while the broader Nifty 500closed at 17,159.40 (158.5, 0.9%). Market breadth is overwhelmingly positive. Of the 2,022 stocks traded today, 1,324 were on the uptrend, and 652 went down.

Indian indices extended their gains from their open and closed in the green, with the Nifty 50closing at 19,412 points. The Indian volatility index, Nifty VIX, rose 2.1% and closed at 11.1 points. Shipping Corp of India closed deep in the red after its net profit declined by 42.5% YoY to Rs 65.7 crore in Q2FY24.

Nifty Smallcap 100 and Nifty Midcap 100 closed higher, taking cues from the benchmark index. Nifty Energy and Nifty Auto closed higher than their Friday close. According to Trendlyne's sector dashboard, Transportation was the top-performing sector of the day as it rose 1.9%.

Major European indices traded flat or lower. Asian indices closed in the green, with Japan’s Nikkei 225 index closing 2.3% higher. US index futures traded flat, indicating a cautious start to the trading session. Brent crude oil futures traded in the green after falling 2.1% on Friday.

  • Money flow index (MFI) indicates that stocks like Swan Energy, Jindal Saw, CreditAccess Grameen and JK Lakshmi Cement are in the overbought zone.

  • Thermax falls despite a 44.5% YoY surge in Q2FY24 net profit to Rs 157.7 crore. Its revenue improves by 12% YoY, aided by the industrial products and industrial infra segments. The company appears in a screener of stocks with growing net profit and margins.

  • Divi's Laboratories falls as its Q2FY24 net profit decreases 29.4% YoY to Rs 348 crore due to higher inventory and employee benefit expenses. However, its revenue rises marginally by 2.9% YoY. The company appears in a screener of stocks with declining net profit and margins.

  • Adani Group is considering the sale of its 43.97% stake in Adani Wilmar, according to reports. The group is in talks with a number of global consumer goods companies to exit the joint venture, and the transaction is expected to close within the next few months.

  • Greaves Cotton is rising as it sells its land in Pune to Runal Developers for a consideration of Rs 284 crore.

  • Bharat Forge rises as its Q2FY24 net profit rises by 55.7% YoY to Rs 2,272.3 crore, with revenue up by 22.7% YoY due to a strong performance in the forging segment. The stock shows up in a screener of companies with increasing revenue for the past four quarters.

  • Protean eGov Technologies' Rs 490.3 crore IPO gets bids for 1.1X the available 43.8 lakh shares on offer on the first day of bidding. The retail investor quota gets bids for 1.5X the available 21.1 lakh shares on offer.

  • Fitch Ratings raises India's medium-term GDP growth forecast by 70 bps to 6.2%, citing an improvement in employment rates and a marginal increase in the working-age population forecast.

  • ESAF Small Finance Bank's Rs 463 crore IPO gets bids for 8.3X the available 5.8 crore shares on offer on the second day of bidding. The retail investor quota gets bids for 7.9X the available 2.8 crore shares on offer.

  • Varun Beveragesis falling despite its Q2FY24 net profit rising 31.5% YoY to Rs 501.1 crore and its gross margins expanding by 163 bps YoY due to the softening of raw material prices and better realisations. Its revenue increases by 21.2% YoY driven by improving sales volumes. The stock shows up in a screenerfor companies with improving net cash flows over the past two years.

  • Geojit BNP Paribas downgrades its rating on Polycab Indiato ‘Sell’ from ‘Add’ and lowers the target price to Rs 4,473 from Rs 5,147. This implies a downside of 11.8%. The brokerage has a cautious outlook for the company’s prospects due to rising input costs, subdued consumer demand and increasing competitive intensity. It also believes that the stock is trading at a high valuation.

  • Energy stocks like Indian Oil Corp, Adani Green Energy, Tata Powerand Power Grid Corp of Indiaare rising in trade. All constituents of the broader Nifty Energyindex are also trading in the green.

  • Retail sales for the automotive industry decline by 8% YoY to 21.2 lakh units in October, shows data from the Federation of Automotive Dealers' Association (FADA). Two-wheeler retail sales are down 13% YoY, and car sales have fallen by 1.4% YoY. However, the sector saw a record 18% increase in sales during the Navratri season.

  • Marksans Pharma rises as its wholly owned subsidiary, Relonchem, gets marketing authorisation for Cyanocobalamin 50mg film-coated tablets from the UK's Medicines and Healthcare products Regulatory Agency (UK MHRA). It appears in a screener for stocks with strong momentum.

  • Shipping Corp of India plunges over 4% as it net profit declines by 42.5% YoY to Rs 65.7 crore in Q2FY24. Revenue falls by 22.9% YoY due to lower earnings from the liner, bulk carrier and tanker segments. However, its EBITDA margin expands by 200 bps YoY, aided by reduced service costs. The company appears in a screener of stocks with declining revenue for the past two quarters.

  • State Bank of India falls despite an 8% YoY increase in Q2FY24 net profit to Rs 14,330 crore. Its net interest income rises by 12% YoY, with asset quality showing improvement as gross and net NPA decrease by 97 bps and 16 bps YoY, respectively. The bank features in a screener of stocks with growing net profit and margins.

  • HSBC maintains its 'Buy' rating on Zomato with an upgraded target price of Rs 140. The brokerage highlights an increase in gross order value (GOV) across the food delivery and quick commerce segments. It has a positive outlook on the company's long-term prospects, particularly in quick commerce. Zomato reports a net profit of Rs 36 crore in Q2FY24 and a 71.5% YoY rise in revenue.

  • NJ Advisory Services buys a 0.6% stake in Computer Age Management Services for approx Rs 63.1 crore in a bulk deal on Friday.

  • Larsen & Toubro is rising as it bags an order worth Rs 2,500-5,000 crore from GMR Visakhapatnam International Airport. The project involves the construction of Bhogapuram International Airport in Andhra Pradesh. The company shows up in ascreener for stocks with book value per share improving over the past two years.

  • Cello World's shares debut on the bourses at a 27.9% premium to the issue price of Rs 648. The Rs 1,900 crore IPO has received bids for 38.9 times the total shares on offer.

  • Man Industries (India) is rising as it bags multiple orders worth Rs 380 crore from international and domestic clients to supply pipes. These new orders take the company's unexecuted order book to Rs 1,400 crore, slated for execution in the next six months.

  • Ashok Sonthalia, CEO of Titan Co, forecasts jewelry margins to range between 12-13% and projects a 48-49% growth for CaratLane in FY24. He estimates total debt to reach Rs 3,000-3,500 crore in Q3 and reveals that the company is developing new channels for a trendy eyecare line. He adds that India has surpassed China as the largest market for wearable devices.

  • Cigniti Technologies rises despite the resignation of its Managing Director, C V Subramanyam, effective from November 3.

  • JSW Infrastructure surges over 5% as its net profit grows by 88.9% YoY to Rs 254.4 crore in Q2FY24. Its revenue also rises 28.1% YoY to Rs 848.3 crore during the quarter. The company's subsidiary, JSW Terminal (Middle East) FZE, has acquired Marine Oil Terminal Corp and its Fujairah branch for an enterprise value of $187 million (approximately Rs 1,555.3 crore).

  • Vedantatrades flat as it reports a net loss of Rs 1,783 crore in Q2FY24, as compared to a net profit of Rs 1,808 crore in Q2FY23. However, its revenue improves by 6.4% YoY, aided by growth in the oil & gas, copper and iron ore segment. The company appears in a screenerof stocks with declining net profit and margins.

  • InterGlobe Aviationis rising as it posts a net profit of Rs 188.9 crore in Q2FY24, compared to a net loss of Rs 1,583.3 crore in Q2FY23. Its revenue increases by 19.6% YoY on higher passenger volumes. EBITDA margin improves by 14.6 percentage points due to reduced fuel and forex costs. The company appears in a screenerof stocks with improving cash flow from operations over the past two years.

Riding High:

Largecap and midcap gainers today include Zomato Ltd. (123.30, 5.84%), Deepak Nitrite Ltd. (2,138.35, 5.77%) and FSN E-Commerce Ventures Ltd. (147.35, 4.99%).

Downers:

Largecap and midcap losers today include Bank of Baroda (195.60, -4.02%), One97 Communications Ltd. (880.65, -2.59%) and Zee Entertainment Enterprises Ltd. (268.35, -2.52%).

Crowd Puller Stocks

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

Top high volume gainers on BSE included Aarti Industries Ltd. (510.00, 10.74%), JK Cement Ltd. (3,403.30, 8.67%) and Amber Enterprises India Ltd. (3,348.90, 7.44%).

Top high volume losers on BSE were Gujarat Fluorochemicals Ltd. (2,716.00, -1.77%) and Bata India Ltd. (1,555.00, -1.35%).

Privi Speciality Chemicals Ltd. (1,284.60, 5.34%) was trading at 19.2 times of weekly average. Heidelberg Cement India Ltd. (189.25, 0.75%) and FSN E-Commerce Ventures Ltd. (147.35, 4.99%) were trading with volumes 13.3 and 8.0 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

32 stocks hit their 52 week highs,

Stocks touching their year highs included - AIA Engineering Ltd. (3,637.40, -3.39%), Blue Star Ltd. (967.00, -0.48%) and Crisil Ltd. (4,360.00, 3.82%).

22 stocks climbed above their 200 day SMA including Aarti Industries Ltd. (510.00, 10.74%) and JK Lakshmi Cement Ltd. (794.25, 6.63%). 3 stocks slipped below their 200 SMA including Bata India Ltd. (1,555.00, -1.35%) and Bharat Dynamics Ltd. (1,040.60, 0.22%).

 
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The Baseline
03 Nov 2023
Five Interesting Stocks Today

1. KPIT Technologies:

This IT consulting & software company has risen by 10% till Friday, since announcing its Q2FY24 results on Monday. Over the past week, the stock has outperformed the Nifty IT index by 9% as investors reacted to a strong set of numbers. The company’s Q2 net profit grew 5.1% QoQ to Rs 140.9 crore and revenue by 9.3% QoQ, beating Trendlyne Forecaster’s estimates by 5.3% and 2.9%, respectively. This growth was driven by the passenger vehicle vertical and improved net realisations. The stock shows up in a screener for companies with high Piotroski scores (indicating healthy financials) and high return on equity and EPS growth.

Another contributing factor to the stock’s uptick is the management’s upgraded constant currency revenue growth guidance for FY24 to 37%, a rise from the previous 27-30%. This revision comes despite the soft demand environment in the IT industry. The management expects robust growth across verticals, driven by its strong deal pipeline. In Q2, its total contract value stood at $156 million.

Kishor Patil, the CEO and MD of KPIT Technologies, said, “Our medium-term business fundamentals and growth drivers remain unchanged. While the geopolitical situation and economic uncertainty across geographies are leading to a softer macro environment, we keep a watchful eye on our clients’ business priorities.”

In the near term, KPIT Technologies expects sustained growth in the passenger vehicle segment, along with plans to increase client engagement and expand services in the commercial vehicle vertical. The management plans to expand into the off-highway four-wheeler segment in the near term and to broaden its operations to other segments in the mobility space in the longer-term.

2. Nippon Life India Asset Management:

This asset management company rose 5.5% on Tuesday, following an 18.6% YoY surge in net profit to Rs 244.4 crore in Q2FY24. The stock has also risen by 20% over the past month, helping it appear in a screener of stocks near their 52-week highs with significant volumes.

Its revenue improved by 20% YoY to Rs 397.5 crore during the quarter, and it beat Trendlyne’s Forecaster estimates for net profit and revenue by 12.5% and 12.6%, respectively. 

Growth came on the back of a 23% YoY increase in assets under management (AUM) from mutual funds to Rs 3.5 lakh crore during the quarter. The improved mutual fund AUM also contributed to an 18 bps QoQ increase in its equity market share to 6.5%. This growth is aided by a boom in the mutual fund market, which has been growing at a CAGR of 21% over FY20-23. With mutual fund penetration in India as a percentage of GDP at 14%, much lower than the global average, there is significant growth potential for AMCs.

In Q1FY24, the company was selected to oversee the Employees' Provident Fund Organization (EPFO) and Corpus for Exchange-Traded Fund (ETF) investments, which began in early July 2023. The management foresees an additional AUM of Rs 1.5 lakh crore, with an annual profit impact of Rs 5-6 crore in the future.

The firm’s overall market share (including ETF, equity and debt) increased by 16 bps YoY to 7.5%. Sundeep Sikka, the ED and CEO of the company, commented, “We continue to witness an uptick in overall market share, driven by gains across most asset classes and a strong increase in equity market share.”

Post results, Axis Direct maintains its ‘Buy’ rating on the stock with an upgraded target price of Rs 430 per share. This indicates a potential upside of 9.3%. The brokerage believes that despite the relatively lower penetration of mutual funds in India, the AMC is well-positioned to enhance its AUM growth in the future. It expects the company’s revenue to grow at a CAGR of 13.8% over FY23-25.

3. Birlasoft: 

This IT consulting and software company hit its all-time high of Rs 593 on Friday and rose by 11.1% in the past week. The surge in price comes after the company reported a 5.5% QoQ rise in its Q2FY24 net profit to Rs 145.1 crore, while its revenue grew by 3.8%. It beat Trendlyne Forecaster’s net profit and revenue estimates by 5.7% and 1.4%, respectively. The company also features in a screener for durable stocks with improving cash flow.

The growth was led by its performance in the Americas, which accounted for 85.8% of revenue and a 5.3% QoQ rise. The manufacturing, BFSI, and digital & cloud segments have grown by 4.3%, 5.3%, and 11.9% QoQ, respectively.  Its EBITDA margin expanded by 52 basis points QoQ to 15.7% despite higher wages and subcontract costs. 

Deal bookings during the quarter were robust, and recovered from a weak Q1FY24. Birlasoft won a $100 million-plus deal from an existing client and booked new deals worth $167 million during Q2FY24.

The management has guided for a muted Q3 due to high attrition (27.4% in Q2FY24), which has impacted the IT sector as a whole. But the company says it will be able to limit these attrition effects, and expects growth to recover in Q4. Speaking about future prospects, Chief Financial Officer Kamini Shah said, “We continue to win deals, generate strong cash flows, and are also seeing moderating attrition levels, all of which gives us the confidence to deliver healthy growth in FY24.”

HDFC Securities maintains its ‘Buy’ call on Birlasoft on the back of an upward earnings growth trajectory, supported by an extensive service portfolio, better market positioning compared to peers, and recent management changes. 

4. Oberoi Realty:

This realty firm rose 2.8% on October 27 as its Q2FY24 net profit increased by 43.4% YoY to Rs 456.8 crore due to lower operating costs. According to Trendlyne’s Technicals, the stock rose 15.2% and outperformed the Nifty Realty by 2.6% in the past week.

In Q2FY24, the company’s revenue improved by 76.8% YoY to Rs 1,243.8 crore, exceeding Trendlyne’s Forecaster estimates for revenue and net profit by 28.5% and 53.3%, respectively. The company’s operating profit margin has also improved by 7.3%  YoY. This helped the company appear in a screener of stocks with improving operating profit and margins.

The rise in revenue was driven by robust pre-sales bookings of Rs 970 crore across Sky City in Borivali, 360 West in Worli, and a pickup in sales in Enigma in Mulund. The company anticipates launching new projects with a gross development value of Rs 1,800 core in H2FY24, and has expanded into Northern India with projects in Gurugram.

The management expects the Borivali Mall to be completed by Q4FY24, which will add a rental income of Rs 350 crore to its yearly pot. The Commerz III project, slated for completion by Q1FY25, is projected to add an annual rental income of Rs 500 crore. The company has reduced its net debt, thanks to a robust cash flow of Rs 700 crore from its core business. This has resulted in a 3.9% QoQ increase in the closing cash balance.

Vikas Oberoi, the Chairman & MD of the company, said, “We believe that the real estate market will continue its upward trajectory, driven by strong demand for established brands, spacious apartments and a desire for home ownership. We expect good demand in retail, fueled by the festive season and increased consumer confidence”.

ICICI Securities expects the company’s rental income to rise to Rs 1,130 crore in FY25E from Rs 290 crore in FY23, as rental operations from these new projects start from Q1FY25E. The Pokhran Road project is also expected to add value to the company’s revenues, leading the brokerage to maintain an “Add” rating on the stock post its Q2FY24 results.

5. Godrej Consumer Products

This FMCG firm has risen over 4.7% in the past two days, after announcing a 20.6% YoY increase in net profit to Rs 432.8 crore in Q2FY24. The jump was driven by a moderation in raw material prices. According to Sudhir Sitapati, the Managing Director and CEO, “The quicker-than-anticipated integration of Raymond Consumer Care and favourable palm oil costs led to profit growth”. 

Meanwhile, its revenue has increased by 6.2% YoY to Rs 3,601.9 crore, marginally beating Trendlyne’s Forecaster estimates by 0.6%, led by healthy growth in overall volumes. The company has risen 2.9% over the past month, outperforming the FMCG sector by 1.1%. 

During the quarter, sales of Godrej Consumer’s homecare segment (which contributes around 36% of revenue) grew 5% YoY, led by air fresheners. However, the personal care segment, which makes up 59% of revenue, saw a 1% contraction due to muted growth in the hair colour range. 

In international markets (which make up over 40% of total revenue), Godrej Consumer’s Indonesia business saw an 11% YoY growth in volumes, aided by its household insecticide business, as well as a favourable macro environment. The Africa, US & Middle East business recorded a 3% growth in volumes. Sudhir Sitapati said, “The company plans to reorganise the hair fashion segment in small East African countries, including Kenya, to improve profitability.” 

Following the earnings release, Motilal Oswal reiterated its ‘Buy’ rating on Godrej Consumer Products with an upgraded target price of Rs 1,150. The brokerage has a positive outlook on the company’s international business and expects it to deliver double-digit sales growth over FY23-25E. As a result, the company features in a screener of companies where brokers have upgraded their recommendations or target prices over the past three months. 

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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The Baseline
03 Nov 2023
Seven stocks that beat expectations, despite global worries | Outperformers screener for Q2
By Tejas MD

The earnings season is crunch time for equity markets, as investors and analysts compare the promises CEOs had made to actual results. 

But the Q2 season has been shadowed by concerns beyond balance sheets. Factors like rising oil prices due to the Israel-Hamas conflict, stubborn inflation, and the possibility of high interest rates sticking around for longer, have slowed market momentum. 

These concerns have also spooked foreign institutional investors (FIIs), who, after six consecutive months of net buying, sold a net of Rs 18,893.8 crore in September, and Rs 19,982.6 crore in October in Indian stocks. In contrast, domestic institutional investors (DIIs) have been net buyers since April.

But India still remains the most favoured FII destination among emerging markets.

FIIs will now look at corporate earnings for signals on where markets are headed. Currently, the Nifty 500 index shows a revenue growth of 10.3% YoY in Q2FY24, with operating profits rising by 25.8%. Let’s take a look at the sectors and stocks that are driving the Nifty 500’s overall revenue growth.

In this week’s analytics, 

  • Seven Stars: Seven high-growth stocks from three sectors are beating expectations
  • Outperformers Screener:Companies that beat revenue and net profit estimates, and posted strong Q2 results 

Banking and finance stocks lead the charge in beating Q2 estimates

The banking and finance sector has taken the lead in driving the Nifty 500’s performance in Q2FY24, with several companies beating Forecaster estimates for both revenue and net profit. The other out-performers are consumer durables and , surprisingly, a few companies in the software and services sector.

Banking and finance companies lead YoY revenue and net profit growth in Q2

Key players driving this momentum include CreditAccess Grameen, Canara Bank, Karur Vysya Bank, Cyient, Tanla Platforms, Dixon Technologies (India) and Polycab India.

Except for Polycab India, all the highlighted companies rose in reaction to results, with CreditAccess Grameen rising 8.5%. Over the past quarter, Dixon Technologies has led the pack overall with a 32.7% increase. 

Banking and finance stocks rise post results, and in the past quarter

CreditAccess, Canara Bank and Karur Vysya not only jumped on the day of results but have continued to rise since the result announcements.

Profits roll in: Banking and finance companies build momentum

Companies from the banking and finance (including NBFCs) industries have been resilient in the past few quarters, and posted high revenue and net profit growth in Q2 as well, mirroring positive results from sector front-runners like HDFC Bank and ICICI Bank. Three companies in focus posted a net interest income increase (both YoY and QoQ), helped by strong loan demand:

Net interest income rises YoY and QoQ as loan demand stays strong in Q2

CreditAccess Grameen saw a 53.3% YoY jump in net interest income, thanks to an expanding gross loan portfolio. Canara Bank and Karur Vysya Bank also reported net interest income growth, fuelled by a spike in loans in the retail segment. Karur Vysya’s personal loans jumped 2.2 times YoY, while Canara Bank’s retail loans grew by 10.5%. 

During Karur Vysya Bank's Q2FY24 earnings call, MD and CEO Ramesh Babu said, “Retail growth has remained steady (+17%) compared to the last quarter, with most of the growth coming from mortgages, both residential and non-residential”. 

Karur Vysya and Canara Bank’s deposits also grew at 12.8% and 9% YoY respectively in Q2. However, their deposits grew at a slower pace compared to loans, which can put pressure on margins going forward. 

Falling attrition rates help software & services companies’ margins in Q2

Software and services firms have had some tough times recently – this sector is highly dependent on global customers, and the slowdown internationally has hit both deal wins and margins. In Q2, industry leaders TCS and Infosys saw single-digit revenue growth, and TCS marginally missed revenue estimates. 

However, mid-cap companies like Cyient and Tanla Platforms posted strong results, beating Trendlyne’s Forecaster estimates for revenue and profit.  

Cyient and Tanla showcase rising revenue YoY and QoQ in Q2

Cyient’s digital engineering and technology segment, which saw a 22% YoY increase, has been key to its revenue boost. Meanwhile, Tanla’s enterprise communications segment (SMS and WhatsApp broadcasts) drove its top-line growth. 

While talking about new growth verticals, Cyient’s management said that its automotive segment is gaining traction on autonomous and connectivity solutions, and that the demand trend for these services looks very strong. 

Both companies have reported YoY rises in operating profit margins due to cost optimization measures and lower employee expenses on the back of falling attrition rates. 

Operating profit margin rises sharply YoY but moderates QoQ

Consumer durables companies see margins rise as raw material prices fall

Consumer electronics company Dixon Technologies posted high QoQ and YoY revenue growth in Q2, on the back of a 76.8% YoY rise in its mobile manufacturing segment. Dixon, which operates under various production-linked incentive (PLI) schemes, is set to begin production of Google Pixel 8 phones, according to Bloomberg.

Mobile manufacturing segment drives Dixon Tech’s revenue in Q2FY24

Polycab India, a cable and wire manufacturer, is not far behind in revenue and profit growth, with increases of 26.6% and 58.9% YoY respectively in Q2FY24. In the Q2 earnings call, Chirayu Upadhyaya, Polycab’s Head of Investor Relations, said, “The cables segment grew with rising demand in the defense sector, which accounts for over 21% of revenues in the first half of the year.”

As both companies' top and bottom lines grew, operating profit margins also rose YoY thanks to a fall in raw material prices, and a favourable product mix. 

Operating profit margins rise YoY on better product mix

Screener: Companies that beat revenue and net profit estimates, with strong Q2 results

Oberoi Realty tops Forecaster estimates in revenue surprise % 

This screener shows stocks from the Nifty 500 that have beaten Trendlyne's revenue and net profit Forecaster estimates for Q2FY24. Stocks from Banking and Finance, Software and Services, Consumer durables, Realty and Retailing feature in the screener. 

Major stocks that appear in the screener are Oberoi Realty, ICICI Securities, Nippon Life India Asset Management, PNB Housing Finance, HDFC Asset Management, Central Depository Services (India) and PVR INOX.

Oberoi Realty’s revenue grew by 76.8% YoY to Rs 1,217.4 crore in Q2FY24, aiding it to beat its Forecaster estimates by 28.5%. The realty company’s revenue increased on the back of gains from Oberoi Mall, Commerz and The Westin Mumbai Garden City. Its net profit also expanded by 43.3% YoY, thanks to reduced raw material and operating expenses.

PVR INOX’s revenue grew the most by 191.2% YoY to Rs 1,999.9 crore in Q2FY24. This helped the retailing company outperform Trendlyne’s Forecaster estimates by 7.8%. Its revenue rose on the back of a jump in the average ticket price (ATP) and spend per head (SPH). It posted a net profit of Rs 166.3 crore in Q2FY24 against a net loss of Rs 71.2 crore in Q2FY23.

You can find some popular screenershere.

Signing off this week,

The Trendlyne Team

 
Trendlyne Marketwatch
Trendlyne Marketwatch
03 Nov 2023
Market closes higher, Raymond acquires a 59.2% stake in Maini Precision for Rs 682 crore

Trendlyne Analysis

Nifty 50closed at 19,230.60 (97.4, 0.5%), BSE Sensexclosed at 64,363.78 (282.9, 0.4%) while the broader Nifty 500closed at 17,000.95 (110.2, 0.7%). Market breadth is in the green. Of the 1,995 stocks traded today, 1,265 were on the uptrend, and 674 went down.

Indian indices maintained the gains from the morning session and closed in the green, with the Nifty 50 closing at 19,231. The volatility index, Nifty VIX, dropped by 1.8% and closed at 10.9 points. Zomato’s Q2FY24 net profit stood at Rs 36 crore, compared to a net loss of Rs 251 crore in Q2FY23. Its revenue grew by 71.5% YoY, aided by robust growth in the food ordering & delivery and quick commerce segments.

Nifty Midcap 100 and Nifty Smallcap 100 closed in the green, following the benchmark index. Nifty Realty and Nifty Media closed sharply higher than Thursday’s closing level. According to Trendlyne’s sector dashboard, forest materials emerged as the top-performing sector of the day, with a rise of over 2.2%.

Most European indices trade in the green. US indices futures trade higher, indicating a positive start. According to data released by S&P, the UK’s composite PMI for October increased to 48.7 against estimates of 48.6. UK’s composite PMI for October stood at 48.6.

  • Relative strength index (RSI) indicates that stocks like Angel One, Swan Energy, Multi Commodity Exchange of India and CreditAccess Grameen are in the overbought zone.

  • Zomato rises sharply as its Q2FY24 net profit stands at Rs 36 crore, compared to a net loss of Rs 251 crore in Q2FY23. Its revenue grows by 71.5% YoY, aided by robust growth in the India food ordering & delivery, hyperpure supplies and quick commerce segments. The company appears in a screener of stocks with increasing revenue over the past four quarters.

  • Lupin rises as it enters into a licensing and supply agreement with Zydus Lifesciences to co-market Saroglitazar, a drug used to treat chronic liver diseases in India. It appears in a screener for stocks with strong momentum.

  • Titan is rising as its net profit grows by 10.1% YoY to Rs 915 crore in Q2FY24. Revenue improves by 25% YoY on the back of growth in the watches & wearables, jewellery and eyecare segments. However, its EBITDA margin contracts by 234 bps YoY due to increased raw material, finance, employee benefits and advertising expenses. The company appears in a screener of stocks bought by superstar investors.

  • Bayer Cropscience rises as its Q2FY24 net profit grows by 36.1% YoY to Rs 222.9 crore, aided by lower inventory, employee benefit and finance expenses. Its revenue increases by 11.4% YoY due to growth in the corn seeds and crop protection segments. The company appears in a screener of stocks with high TTM EPS growth.

  • Motilal Oswal says that Q2FY24 earnings of Nifty 50 companies have mostly been in line with its estimates, driven by cyclical sectors like BFSI and auto. The brokerage highlights that companies likeICICI Bank, HDFC Bank, Bajaj Auto and Hero MotoCorp beat its expectations in terms of profit, while UPL, Wipro and SBI Life missed estimates.

  • MRF is falling despite its net profit jumping by 4.5X YoY to Rs 586.7 crore and EBITDA margin sharply expanding by 10.4 percentage points YoY to 18.6%. Its profitability surges on the back of declining raw material costs. On the other hand, its revenue increases by 6.7% YoY. The stock shows up in a screener for companies with declining net cash flows.

  • Arvind Fashion rises sharply as it enters into a share purchase agreement with Reliance Beauty & Personal Care to sell its entire stake in its subsidiary, Arvind Beauty Brands, for Rs 99 crore. The company appears in a screener of stocks with strong momentum.

  • Adani Ports & Special Economic Zone reports a record-breaking 48% YoY increase in cargo volumes for October, reaching 37 million metric tonnes. In the first seven months of FY24, the company has managed a total of 240 million metric tonnes of cargo, reflecting an 18% YoY growth.

  • Whirpool of India is falling as its Q2FY24 net profit decreases by 23.6% YoY to Rs 36.6 crore due to increasing employee benefit expenses and finance costs. Its revenue also drops by 5.6% YoY to Rs 1,521.6 crore. It features in a screener of companies with a YoY decline in quarterly net profit and profit margin.

  • Raymond is rising as it acquires a 59.2% stake in Maini Precision Products for Rs 682 crore. This acquisition will help the company enter the aerospace, defence and electric vehicles segments.

  • Sanjay Purohit, the CEO and MD of Sapphire Foods, says the quick service restaurant (QSR) space is experiencing demand headwinds, and the pizza category's downturn is temporary. He adds that the company's internal target is 5-7% of same-store-sales growth (SSSG) and the company would double its retail footprint in four years.

  • HDFC Securities upgrades its rating on Ambuja Cements to ‘Buy’ from ‘Add’ and maintains its target price at Rs 480, implying an upside of 14.5%. The brokerage is optimistic about the company’s growth outlook and sees the firm’s plans to double production capacity as a key positive. It expects the firm’s net profit to grow at a CAGR of 17.1% over FY23-25.

  • ESAF Small Finance Bank's Rs 463 crore IPO gets bids for 0.8X the available 5.8 crore shares on offer on the first day of bidding. The retail investor quota gets bids for 1.2X the available 2.8 crore shares on offer.

  • HDFC Mutual Fund acquires a 0.4% stake in Karur Vysya Bank through open markets on Wednesday.

  • Suzlon Energyrises to an all-time high of Rs 34.2 as its Q2FY24 net profit grows by 78.1% YoY to Rs 102.3 crore, aided by falling inventory and finance expenses. However, its revenue declines by 1% YoY due to lower sales in the wind turbine generator segment. The company appears in a screenerof stocks with improving book value per share.

  • Kirloskar Oil Enginesplunges more than 5% as its net profit declines by 6.9% YoY to Rs 78 crore in Q2FY24. However, its revenue grows by 6.2% YoY, aided by gains in B2B and B2C segments. Its EBITDA margin contracts by 110 bps YoY due to rising costs for raw materials, finance and employee benefits. The company appears in a screenerof stocks where mutual funds have decreased their shareholdings over the past quarter.

  • Abhijit Roy, the CEO and MD of Berger paints, reports a 10.9% increase in company volume for Q2, with expectations for continued growth. The company's market share has risen to 20.1% in H1FY24 from 19.3% in FY23. Roy adds that Berger Paints is well-prepared for new industry competition from Grasim. He also highlights ongoing efforts in network expansion and the roll-out of key digital initiatives.

  • Kalpataru Projects International falls despite its Q2FY24 net profit rising 3.5% YoY to Rs 89 crore. Its revenue grows 19% YoY, aided by growth in the engineering, procurement and construction segment. The company appears in a screener of stocks with high momentum scores.

  • Dabur India is rising as its Q2FY24 net profit rises 5.1% YoY to Rs 515 crore and gross margin expands by 295 bps YoY. Its revenue grows by 7.3% YoY, driven by the consumer care segment. The stock shows up in a screener for companies with zero promoter pledges.

  • Auto stocks like Tata Motors, Tube Investments of India, Hero MotoCorp and Eicher Motors are rising in trade. All constituents of the broader Nifty Auto index are also trading in the green.

  • India’s Services PMI drops to 58.4 in October from 61 in September due to a moderation in demand and competitive pressures.

  • Mahindra & Mahindra Financial Services rises as its October disbursements hit around Rs 5,250 crore, mirroring the previous year's figure. The year-to-date disbursements total up to about Rs 30,700 crore, marking a 16% YoY increase. The company also shows a 3% YoY improvement in collection efficiency.

  • Sheela Foam appoints Tushaar Gautam as its Managing Director (MD), effective immediately. It also names Rahul Gautam, former MD, as the Whole-Time Director and Chairman.

  • Ratnamani Metals & Tubes is rising as its Q2FY24 net profit surges 65.9% YoY to Rs 163.9 crore and EBITDA margins expand by 80 bps YoY. Its revenue rises by 25.7% YoY, led by healthy growth in the steel tubes & pipes segment. The stock shows up in a screener for companies with low debt.

  • Citi downgrades its rating on Tata Steel to 'Sell' and lowers the target price to Rs 100. The downgrade reflects concerns over domestic steel prices and potential risks if Chinese steel prices do not pick up . According to the brokerage, there is also concern about the company's restructuring plans and future profitability.

  • Kotak Mahindra Life Insurance buys a 0.6% stake in Minda Corp for approx Rs 45.6 crore in a bulk deal on Thursday.

  • ESAF Small Finance Bank raises Rs 135.2 crore from anchor investors ahead of its IPO by allotting around 2.3 crore shares at Rs 60 each. Investors include Founders Collective Fund, Alchemie Ventures Fund, Copthall Maritius Investment, BNP Artitrage, Kotak Mahindra Life Insurance Co and Edelweiss Tokio Life Insurance Co.

  • JK Lakshmi Cements surges more than 5% as its net profit grows by 51.8% YoY to Rs 92.7 crore in Q2FY24. Revenue increases by 14.6% YoY, aided by higher sales. The company also plans to set up an additional cement grinding unit with a capacity of 13.5 lakh tonnes per annum. The expansion has a capex of Rs 225 crore and is expected to be completed in the next two years.

  • Indian Energy Exchangerises as its Q2FY24 net profit grows by 21.4% YoY to Rs 86.5 crore. Its revenue also increases by 16.9% YoY, aided by higher trading volumes in the conventional power and green power segments. The company appears in a screenerof stocks with growing net profit and margins.

  • Tata Motorsis rising as it posts a net profit of Rs 3,764 crore in Q2FY24, compared to a loss of Rs 944.6 crore in Q2FY23. Its revenue increases by 32% YoY on the back of improved sales from commercial vehicles and Jaguar Land Rover. It appears in a screenerof stocks showing a shift from negative to positive in sales and profit, along with strong price momentum.

Riding High:

Largecap and midcap gainers today include Zomato Ltd. (116.50, 8.32%), Bayer Cropscience Ltd. (5,226.05, 6.54%) and Apollo Hospitals Enterprise Ltd. (5,153.20, 5.45%).

Downers:

Largecap and midcap losers today include Cholamandalam Investment & Finance Company Ltd. (1,134.30, -3.66%), Supreme Industries Ltd. (4,379.45, -2.98%) and MRF Ltd. (1,07,723.25, -2.51%).

Movers and Shakers

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

Top high volume gainers on BSE included JK Lakshmi Cement Ltd. (744.85, 10.48%), Zomato Ltd. (116.50, 8.32%) and JM Financial Ltd. (88.70, 7.13%).

Top high volume losers on BSE were Godfrey Phillips India Ltd. (2,149.00, -8.50%), Cholamandalam Investment & Finance Company Ltd. (1,134.30, -3.66%) and 360 One Wam Ltd. (532.95, -3.37%).

Bayer Cropscience Ltd. (5,226.05, 6.54%) was trading at 41.5 times of weekly average. Orient Electric Ltd. (221.20, 1.96%) and Ratnamani Metals & Tubes Ltd. (2,900.15, 2.64%) were trading with volumes 15.5 and 10.3 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

26 stocks made 52 week highs, while 2 stocks tanked below their 52 week lows.

Stocks touching their year highs included - Blue Star Ltd. (971.70, 4.81%), Canara Bank (387.50, -0.17%) and DLF Ltd. (595.85, 3.11%).

Stocks making new 52 weeks lows included - Aegis Logistics Ltd. (283.25, -2.16%) and Sumitomo Chemical India Ltd. (372.20, -0.27%).

22 stocks climbed above their 200 day SMA including JK Lakshmi Cement Ltd. (744.85, 10.48%) and Computer Age Management Services Ltd. (2,390.65, 5.62%). 2 stocks slipped below their 200 SMA including Sapphire Foods India Ltd. (1,306.05, -0.96%) and Poonawalla Fincorp Ltd. (347.70, -0.56%).

 
Trendlyne Marketwatch
Trendlyne Marketwatch
02 Nov 2023
Market closes higher, GR Infraprojects bags an order worth Rs 1,226.9 crore from NHAI

Trendlyne Analysis

Nifty 50closed at 19,133.25 (144.1, 0.8%), BSE Sensexclosed at 64,080.90 (489.6, 0.8%) while the broader Nifty 500closed at 16,890.80 (157.9, 0.9%). Market breadth is surging up. Of the 1,995 stocks traded today, 1,361 were in the positive territory and 599 were negative.

Indian indices extended their gains from the afternoon session and closed in the green, with the Nifty 50closing at 19,133.3 points. The Indian volatility index, Nifty VIX, fell 8.1% and closed at 11.1 points. Godrej Properties closed 3.1% higher after its Q2FY24 net profit rose by 8.4% YoY to Rs 72.6 crore, while its revenue increased by 107.8% YoY due to robust sales in the NCR region.

Nifty Smallcap 100 and Nifty Midcap 100 closed in the green and outperformed the benchmark Nifty 50 index. Nifty IT and Nifty Energy closed higher than their Wednesday close. According to Trendlyne's sector dashboard, Realty was the top-performing sector of the day as it rose 2.1%.

Major European indices traded higher amid positive global cues. Asian indices closed in the green, except for China’s Shanghai SE Composite Index closing lower. US index futures traded higher, indicating a positive start to the trading session. Brent crude oil futures traded in the green after falling 0.8% on a volatile day on Wednesday.Alkem Laboratories sees a long buildup in its November 30 future series as its open interest rises 21% with a put-call ratio of 0.6.

  • Prism Johnson, Godfrey Philips India, Chambal Fertilisers & Chemicals, and MRF rise 16.5%, 14.3%, 3.8%, and 1.6% respectively over the past week, ahead of their Q2FY24 results tomorrow.

  • Adani Power is rising as its Q2FY24 net profit jumps by 9.5X YoY to Rs 6,594.2 crore, led by reduced fuel costs, lower import coal prices, and a one-time deferred tax credit of Rs 1,370.6 crore. Revenue surges by 84.4% YoY due to increased sales volume and merchant sales. The stock shows up in a screener for companies with high TTM EPS growth.

  • Godrej Properties rises as its Q2FY24 net profit rises by 21.5% YoY to Rs 66.8 crore, while its revenue increases by 107.8% YoY due to robust sales in the NCR region. The stock shows up in a screener for stocks with strong momentum.

  • According to reports, 1.2 crore shares (0.2% equity) of HDFC Bank, amounting to approximately Rs 1,811.5 crore, have changed hands in a large trade.

  • Sun Pharmaceuticals Industries rises as its Q2FY24 net profit grows by 5% YoY to Rs 2,375.5 crore due to lower raw material expenses. Its revenue improves by 13.1% YoY, aided by growth in India, the rest of the world, and emerging markets. The company appears in a screener of stocks with growing net profit and margin.

  • KRChoksey downgrades its rating on Laxmi Organic Industries to ‘Hold’ from ‘Buy’ and lowers the target price to Rs 258 from Rs 302, implying an upside of 1.5%. The brokerage believes weak global demand for industrial solutions, unfavourable product mix and a lack of visible revenue growth in the specialty segment will impact growth in the near-to-medium term.

  • GR Infraprojects is rising as it bags an order worth Rs 1,226.9 crore from the National Highways Authority of India. The order pertains to the construction of four lanes of NH 530B from Devinagar to Kasganj Bypass.

  • Honasa Consumer's Rs 1,701.4 crore IPO gets bids for 7.6X the available 2.9 crore shares on offer on the third day of bidding. The retail investor quota gets bids for 1.3X the available 52.5 lakh shares on offer.

  • Shashank Srivastava, Senior Executive Officer - Marketing and Sales of Maruti Suzuki India, says that the company's October wholesales have outpaced industry growth. Retail sales also see a strong 9% increase ahead of the festive season. He notes a slight dip in the company's SUV market share in October. Srivastava also claims that demand is robust as the semiconductor supply shortage appears to be over.

  • Triveni Turbinesrises as its Q2FY24 net profit improves by 39% YoY to Rs 64.2 crore due to lower inventory expenses. Its revenue grows by 32.5% YoY, aided by robust demand in the industrial and American Petrol Institute (API) drive turbines segment. The company appears in a screenerof stocks with high TTM EPS growth.

  • LIC Housing Financedeclines despite its Q2FY24 net profit rising by 283.4% YoY to Rs 1,193.5 crore, with revenue also up by 32.6% YoY due to an increase in interest income. The stock shows up in a screenerof volume shockers stocks.

  • Kotak Mahindra Bankis rising as it enters an agreement with Kotak Mahindra General Insurance and Zurich Insurance. According to the agreement, Zurich Insurance will buy a 51% stake in Kotak Mahindra General Insurance for Rs 4,051 crore. The company will have the option to acquire an additional 19% stake within three years of the initial transaction.

  • India's GST collections rise 13% YoY to Rs 1.7 lakh crore in October, driven by increased consumer spending during the festive season and strict anti-evasion measures.

  • Godrej Consumer Products is rising as its Q2FY24 net profit rises 20.6% YoY to Rs 432.8 crore and EBITDA margins expand by 360 bps YoY, driven by a decline in raw material costs. Its revenue also rises by 6.2% YoY to Rs 3,601.9 crore, led by a 10% YoY growth in volumes. The stock shows up in a screener for companies with low debt.

  • Power stocks like JSW Energy, Bharat Heavy Electricals, Tata Powerand Adani Green Energy are rising in trade. All constituents of the broader BSE Power index are also trading in the green.

  • Skipper rises as it bags new orders worth Rs 924 crore, including a Rs 788 crore order from the domestic transmission & distribution (T&D) business of Power Grid Corporation of India and a Rs 136 crore order for several other domestic T&D projects. It appears in a screener for stocks with strong momentum.

  • Sudhir Sitapati, CEO of Godrej Consumer Products, expects H2 earnings to match H1, with a predicted 10% volume growth driven by festive demand. The company's strong pesticide business in Indonesia and upcoming advancements in Africa are set to improve margins. Its Q2FY24 net profit rises by 20.6% YoY to Rs 432.8 crore, while its revenue grows by 6.9% YoY.

  • Tata Steel is falling as it posts a net loss of Rs 6,196.2 crore in Q2FY24, compared to a net profit of Rs 1,514.4 crore in Q2FY23. The loss is due to a Rs 3,255.1 crore impairment provision for non-current assets in Europe and a Rs 3,612 crore provision for restructuring European operations. Revenue drops 7.1% YoY to Rs 55,681.9 crore, with downturns in both European and Indian segments.

  • Telecom stocks like RailTel Corp of India, Indus Towers, Tata Communications, Avantel and OnMobile Global are rising in trade. Barring Optiemus Infracom, all the other constituents of the broader sectoral index, S&P BSE Telecom, are trading in the green.

  • Gujarat Mineral Development Corp plunges more than 8% as its net profit declines by 50.7% YoY to Rs 74.6 crore in Q2FY24. Revenue falls by 29% YoY due to a reduction in revenue from the mining segment. It shows up in a screener of stocks with YoY decline in quarterly net profit and profit margin.

  • India’s manufacturing PMI drops for the second consecutive month to 55.5 in October from 57.5 in September. This is due to weakened demand in the consumer goods segment. The PMI reading, however, stays above 50 for the 28th straight month, indicating an expansion in manufacturing activity.

  • PSU bank stocks like Bank of India, Union Bank of India, Indian Overseas Bank and Bank of Maharashtra are rising in trade. All constituents of the broader Nifty PSU Bank index are also trading in the green.

  • GAIL (India) is rising as it signs an agreement with Bharat Petroleum Crop (BPCL) to procure propane for its petrochemical plant in Maharashtra for the next 15 years. The contract, worth an estimated Rs 63,000 crore, will supply a total of 600 KTPA of propane.

  • Britannia Industries rises as its Q2FY24 net profit improves by 19.1% YoY to Rs 587.6 crore due to lower inventory and employee benefit expenses. Its revenue grows by 1.2% YoY, aided by improved realisations. The company appears in a screenerof stocks with growing net profit and margins.

  • Hero MotoCorpis rising as its net profit surges by 46.2% YoY to Rs 1,006.3 crore in Q2FY24. Its revenue also improves by 4.1% YoY, aided by an increase in two-wheeler sales. EBITDA margin expands by 260 bps YoY due to reduced raw material and finance costs. The company appears in a screenerof stocks near their 52-week highs.

Riding High:

Largecap and midcap gainers today include Vodafone Idea Ltd. (13.75, 7.42%), REC Ltd. (302.40, 6.91%) and Power Finance Corporation Ltd. (257.65, 6.38%).

Downers:

Largecap and midcap losers today include Solar Industries India Ltd. (5,318.50, -3.67%), Schaeffler India Ltd. (2,651.00, -3.22%) and Gland Pharma Ltd. (1,490.75, -2.82%).

Movers and Shakers

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

Top high volume gainers on BSE included Hitachi Energy India Ltd. (4,471.25, 7.63%), REC Ltd. (302.40, 6.91%) and KRBL Ltd. (378.25, 5.95%).

Top high volume losers on BSE were Deepak Fertilisers & Petrochemicals Corporation Ltd. (594.75, -6.95%), Kansai Nerolac Paints Ltd. (310.90, -1.32%) and Hero MotoCorp Ltd. (3,052.10, -1.30%).

Minda Corporation Ltd. (337.40, -0.53%) was trading at 9.1 times of weekly average. Aptus Value Housing Finance India Ltd. (289.80, 1.28%) and Sun Pharma Advanced Research Company Ltd. (237.90, 3.64%) were trading with volumes 9.0 and 5.6 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

19 stocks overperformed with 52 week highs, while 3 stocks tanked below their 52 week lows.

Stocks touching their year highs included - Canara Bank (388.15, 1.27%), Colgate-Palmolive (India) Ltd. (2,124.65, 1.61%) and Vodafone Idea Ltd. (13.75, 7.42%).

Stocks making new 52 weeks lows included - Aegis Logistics Ltd. (289.50, 2.10%) and Sumitomo Chemical India Ltd. (373.20, -0.16%).

22 stocks climbed above their 200 day SMA including Triveni Turbine Ltd. (391.70, 9.15%) and KRBL Ltd. (378.25, 5.95%). 8 stocks slipped below their 200 SMA including Deepak Fertilisers & Petrochemicals Corporation Ltd. (594.75, -6.95%) and Sapphire Foods India Ltd. (1,319.80, -0.73%).

 
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The Baseline
02 Nov 2023
Chart of the Week: Food and Hotels sectors see big promoter holding changes in Q2
By Akshat Singh

For the average investor, big changes in a company’s promoter holdings  offer crucial signals. When promoters buy shares, it can indicate their confidence in the business, a positive sign for other investors.

But a promoter's sale of shares is not an automatic red flag—it can be due to many reasons, such as realizing profits, regulatory compliance or tax planning. 

In this edition of Chart of the Week, we analyze the top five companies from the Nifty 500 that have seen the biggest QoQ changes in promoter holdings. We will assess two screeners: one for the highest QoQ rises and the other for the highest QoQ falls in promoter holdings over the past quarter. 

Adani group companies see high promoter buying in Q2

We begin with companies where promoters already holding a substantial company stake, have further increased their holdings. Bombay Burmah Trading Corp (BBTC), Adani Enterprises and Adani Energy Solutions stand out here, with promoter holdings increasing by 8.1 percentage points, 500 basis points and 490 basis points to 74.1%, 72.6% and 73.2% respectively in the past quarter. 

BBTC’s stakes were bought by Wallace Brothers Trading & Industrial (8.1%). However, on September 12,  India Ratings, an affiliate of Fitch, downgraded BBTC to India A+ from India AA due to its 33% stake in GoAir, which raised concerns. 

Adani Enterprises' holdings were acquired by promoter Kempas Trade and Investments (2.8%) in the previous quarter, while Adani Energy Solutions' shares were taken up by Gelt Bery Trade and Investment (4.9%) during the same period. These transactions occurred amid allegations of "opaque investments" against Adani, with reports suggesting that the group funneled millions of dollars into publicly traded stocks of its group companies through offshore structures. 

Turning to companies with relatively lower promoter holdings that have seen an uptick in the past quarter, we have Rallis India and Piramal Enterprises. Their promoter holdings rose by 500 basis points and 270 basis points, respectively, to 55.1% and 46.2%. On July 18, Tata Chemicals acquired a 5% stake in Rallis India to strengthen its position in the company. 

Meanwhile, Piramal Enterprises’ promoters, V3 Designs (0.3%) and PRL Realtors (0.2%), picked up stakes in the company during the same quarter.

MFs and FIIs compensate for high promoter selling

We now focus on firms with significant promoter holdings that have seen a sell-off by promoters in the past quarter. This includes Shyam Metalics and Energy, Patanjali Foods and Sheela Foam, where promoters reduced their holdings by 6.7 percentage points, 7 percentage points, and 7.5 percentage points respectively, leading to adjusted promoter stakes of 81.6%, 73.8%, and 65.5%.

Shyam Metalics and Energy's promoters, Narantak Dealcomm and Shubham Buildwell, sold a 5.1% stake through an offer for sale on September 11 to comply with SEBI's minimum public shareholding norms. Domestic institutional investor (DII) Tata AIA Life Insurance Company offset the divestment by purchasing a 1.3% stake. 

Patanjali Foods' majority promoter, Patanjali Ayurved, divested 7% of its stake in the company through a Rs 2,533.9 crore offer for sale on July 14. This offering attracted the FPI, GQG partners, which acquired 2% of the company's stake for its Emerging Markets funds, along with a 1.3% purchase by other investors. 

Sheela Foam's Q2 promoter divestment included CEO Tushaar Gautam (3.6%), and Rangoli Resorts (1.4%). These sales were offset by purchases by mutual funds (MFs) such as SBI Small Cap Fund (0.4%), Nippon Life India Trustee (1.8%), Kotak Funds (2.5%), and the insurance company SBI Life Insurance (1.8%).

Now, let's shift our focus to companies where already low promoter holdings have been pared down further. GMM Pfaudler and Restaurant Brands Asia stand out here, with promoters divesting 13.6 percentage points and 25.4 percentage points, respectively, in the last quarter. Consequently, their ownership has dwindled to 25.2% and 15.4%, respectively. Promoter Pfaudler sold a 13.6% stake in GMM Pfaudler on August 18, of which 9.9% was acquired by private equity (PE) investor Chrys Capital, while the remaining shares were purchased by Canara Robeco Mutual Fund (1.5%). Additionally, foreign portfolio investors (FPIs) like Taiyo Greater India Fund (0.4%) and First Sentier Investors (1.3%) bought stakes in the company.

Restaurant Brands Asia's promoter, QSR Asia, divested 25.4% of its holdings in the last quarter, making it the highest promoter sell-off QoQ in the Nifty 500. This divestment was purchased by mutual funds (MFs) such as Quant Small Cap Fund (2.8%) and Tata Mutual Fund (2.8%). FPIs alo participated, with Goldman Sachs Funds (1.2%) and Franklin Templeton Investment Funds (1%), and the insurance company ICICI Prudential Life Insurance (6.9%) acquiring shares.

 
Trendlyne Marketwatch
Trendlyne Marketwatch
31 Oct 2023, 03:46PM
Market closes lower, GAIL's Q2FY24 net profit increases 85.8% YoY to Rs 2,444 crore

Trendlyne Analysis

Nifty 50 closed at 19,079.60 (-61.3, -0.3%) , BSE Sensex closed at 63,874.93 (-237.7, -0.4%) while the broader Nifty 500 closed at 16,801.10 (-25, -0.2%), of the 1,982 stocks traded today, 989 were on the uptick, and 944 were down.

Indian indices extended the losses from the afternoon session and closed in the red, with the Nifty 50 closing at 19,080. The volatility index, Nifty VIX, rose by 3% and closed at 11.8 points. GAIL’s (India) Q2FY24 net profit increased by 85.8% YoY to Rs 2,444 crore due to lower raw material and inventory expenses. Its revenue dropped by 14.7% YoY on the back of a downturn in its natural gas marketing and LPG & liquid hydrocarbons segments.

Nifty Midcap 100 closed in the green, while Nifty Smallcap 100 closed flat, with the benchmark index closing lower. Nifty Realty and Nifty Media closed higher than Monday’s closing level. According to Trendlyne’s sector dashboard, fertilizer emerged as the top-performing sector of the day, with a rise of over 4.3%.

Most European indices are trading in the green. US indices futures trade higher, indicating a positive start. According to data released by Eurostat, the Eurozone’s GDP for Q3 increased by 0.1% YoY, against estimates of 0.2% growth.

  • Relative strength index (RSI) indicates that stocks like Angel One, Swan Energy and CreditAccess Grameen are in the overbought zone.

  • GE T&D India is rising as it bags orders worth approximately Rs 500 crore from Power Grid Corp of India (PGCIL). The contract involves the supply of power transformers and shunt reactors for PGCIL’s transmission system projects in India. The company shows up in a screener for stocks with the highest recoveries from their 52-week lows.

  • Indian Oil Corporation rises as it reports a Q2FY24 net profit of Rs 13,114.3 crore, compared to a net loss of Rs 991.6 crore in Q2FY23, aided by lower raw material and inventory expenses. However, its revenue falls by 11.9% YoY due to lower realisation in the petroleum products segment. The company appears in a screener of stocks with increasing quarterly profits for the past three quarters.

  • DCX Systems surges more than 8% as its net profit grows by 159.3% YoY to Rs 20.4 crore in Q2FY24. Revenue improves by 77.8% YoY, owing to an increased order book from the cables and wire harness segment. Its EBITDA margin expands by 16 bps YoY, aided by reduced finance and other expenses. The company appears in a screener of stocks with the highest recovery from their 52-week lows.

  • Shalabh Saxena, CEO & MD of Spandana Sphoorty Financial, says the company's AUM could reach Rs 12,000 crore by the end of FY24. He also mentions that they have been producing 5.5-5.8% RoA (Return on Assets), against a forecasted 4.5%. He adds that the company targets an AUM of Rs 15,000 crore by FY25, as stated in their Vision 2025 plan.

  • GAIL (India) rises as its Q2FY24 net profit increases 85.8% YoY to Rs 2,444 crore due to lower raw material and inventory expenses. However, its revenue drops by 14.7% YoY on the back of a downturn in its natural gas marketing and LPG & liquid hydrocarbons segments. The company appears in a screener of stocks with growing net profit and margins.

  • Honasa Consumer's Rs 1,701.4 crore IPO gets bids for 0.1X the available 2.9 crore shares on offer on the first day of bidding. The retail investor quota gets bids for 0.3X the available 52.5 lakh shares on offer.

  • Cello World's Rs 1,900 crore IPO gets bids for 1.4X the available 2.2 crore shares on offer on the second day of bidding. The retail investor quota gets bids for 1X the available 1.1 crore shares on offer.

  • V Vaidyanathan, the MD and CEO of IDFC First Bank, says the bank targets a 24-25% credit growth and over 40% deposit growth in the remaining two quarters of FY24. He also highlights that the bank is set to prioritise deposit over advance growth to repay legacy infrastructure bonds. He also affirms that the IDFC First Bank-IDFC merger is on track.

  • HDFC Securities upgrades its rating on Ujjivan Small Finance Bank to ‘Buy’ from ‘Add’ and raises the target price to Rs 75 from Rs 50. This implies an upside of 43.3%. The brokerage is positive about the bank’s growth prospects due to its rising disbursements, healthy collections and lower credit costs.

  • Castrol Indiadeclines despite its Q3CY23(July-September) net profit rising by 3.9% YoY to Rs 194.4 crore due to a fall in raw material costs. Revenue also increases by 5.6% YoY. The stock shows up in a screenerfor companies with a decline in net profit.

  • GMR Airports Infrastructure is rising despite reporting a net loss of Rs 91 crore in Q2FY24, compared to a net profit of Rs 207.8 crore in Q2FY23. This is due to higher depreciation and interest charges. However, its EBITDA margin has improved to 53% (up 400 bps YoY). The company's revenue has risen 30% YoY, led by strong growth in passenger traffic.

  • Filatex Indiais falling despite its board of directors approving an expansion of the manufacturing capacity of recycling chips from polyester and textile waste to 20,000 MTPA. The company estimates a capex of Rs 150 crore for the expansion.

  • Pidilite Industries surges as Goldman Sachs upgrades its rating to 'Buy' from 'Sell' and raises the target price to Rs 2,725. According to the brokerage, the earnings downgrade cycle is now concluded, and the company is witnessing the emergence of new growth opportunities. However, it cautions that a slowdown in housing construction and rising input costs could impact margins.

  • PSP Projects is rising as it bags multiple construction orders worth Rs 200.3 crore in Gujarat. This takes the total order inflow in FY24 to Rs 958.6 crore. The stock shows up in a screener for companies with improving cash flows and high durability scores.

  • Blue Star surges to its all-time high of Rs 955 per share as its net profit grows by 66.1% YoY to Rs 70.7 crore in Q2FY24. Revenue expands by 19.5% YoY on the back of the electro-mechanical projects, air conditioning systems and unitary products segments. It features in a screener of stocks with YoY growth in quarterly net profit and profit margin.

  • Larsen & Toubro's hydrocarbon business bags a contract worth more than Rs 15,000 crore from a Middle Eastern client to set up a gas compression plant.

  • Sivaramakrishnan Ganapathi, Vice-Chairman & MD of Gokaldas Exports, anticipates a robust H2FY24 after a challenging H1, aided by a large order book. He says the company has added manpower to improve operations. He highlights the acquisition of Atraco Group (a Middle Eastern apparel company) and expects it to contribute to incremental revenue in Q4. Gokaldas Exports' Q2FY24 net profit fell by 48.2% YoY to Rs 23.7 crore, while revenue was down 11.7% YoY.

  • Honasa Consumer raises Rs 765.2 crore from anchor investors ahead of its IPO by allotting around 2.4 crore shares at Rs 324 each. Investors include Abu Dhabi Investment Authority, Government Pension Fund Global, Goldman Sachs, Smallcap World Inc, Carmignac Portfolio, Franklin Templeton, Invesco, Whiteoak Capital MF, and Nippon Life India.

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

  • DLF rises as its Q2FY24 net profit increases by 30.6% YoY to Rs 622.8 crore due to decreased employee expenses and finance costs. Its revenue also grows by 8.5% YoY. The stock shows up in a screener for companies with strong momentum.

  • Jefferies maintains its 'Buy' rating on UPL but cuts the target price to Rs 675. The brokerage cites the company's Q2 sales shortfall, attributing it to global channel destocking and increased pricing pressures. It reduces the FY24-26 EPS estimates by 9-10% but sees an improvement in H2.

  • APL Apollo Tubes falls despite its net profit growing by 35.1% YoY to Rs 202.9 crore in Q2FY24. Revenue improves by 16.7% YoY, aided by increased sales volumes of Apollo Structural, Apollo Z and Apollo Galv. It appears in a screener of stocks with high FII holdings.

  • Marico is falling despite its Q2FY24 net profit rising 17.3% YoY to Rs 353 crore, led by lower raw material costs. Its revenue falls by 0.8% YoY on the back of price cuts and a sluggish pace of recovery in rural demand. The stock shows up in a screener for companies with high promoter stock pledges.

  • Tata Motors rises as it wins an arbitration case to recover Rs 766 crore from West Bengal Industrial Development Corp for their Sinur Nano Project. The company appears in a screener of stocks with strong annual EPS growth.

  • TVS Motor Co’s Q2FY24 net profit remains flat YoY at Rs 386.3 crore due to higher cost of materials and employee expenses. Its revenue rises 16% YoY to Rs 9,932.8 crore, led by a 5% YoY growth in overall sales volume. The stock shows up in a screener for companies with declining cash flows from operations over the past two years.

Riding High:

Largecap and midcap gainers today include Pidilite Industries Ltd. (2,458.00, 6.31%), Procter & Gamble Hygiene & Healthcare Ltd. (17,500.00, 4.90%) and Patanjali Foods Ltd. (1,367.90, 4.52%).

Downers:

Largecap and midcap losers today include Supreme Industries Ltd. (4,329.25, -4.26%), Siemens Ltd. (3,330.95, -2.90%) and Mahindra & Mahindra Ltd. (1,458.60, -2.62%).

Volume Shockers

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

Top high volume gainers on BSE included Piramal Pharma Ltd. (104.50, 9.48%), Pidilite Industries Ltd. (2,458.00, 6.31%) and Nippon Life India Asset Management Ltd. (391.45, 5.54%).

Top high volume losers on BSE were DCM Shriram Ltd. (926.50, -4.88%), CCL Products India Ltd. (590.15, -4.53%) and Fine Organic Industries Ltd. (4,419.70, -3.67%).

Blue Star Ltd. (884.65, 1.43%) was trading at 21.1 times of weekly average. Galaxy Surfactants Ltd. (2729.75, 4.74%) and V-Guard Industries Ltd. (297.55, -1.81%) were trading with volumes 13.7 and 5.8 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

9 stocks took off, crossing 52 week highs, while 3 stocks tanked below their 52 week lows.

Stocks touching their year highs included - Blue Star Ltd. (884.65, 1.43%), Canara Bank (384.35, 0.46%) and Motilal Oswal Financial Services Ltd. (1,038.05, 2.28%).

Stocks making new 52 weeks lows included - Petronet LNG Ltd. (199.60, -1.04%) and UPL Ltd. (540.50, 0.34%).

14 stocks climbed above their 200 day SMA including Triveni Turbine Ltd. (359.20, 6.05%) and City Union Bank Ltd. (138.10, 3.33%). 15 stocks slipped below their 200 SMA including CCL Products India Ltd. (590.15, -4.53%) and TeamLease Services Ltd. (2,346.20, -3.71%).