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The Baseline
13 Nov 2023
Five analyst picks from cement & construction, general industrials
By Suhas Reddy

This week, we take a look at the top analyst picks from the cement & construction and general industrials sectors.

1. Cummins India:

BoB Capital Markets keeps its ‘Buy’ rating on this industrial machinery manufacturer with a target price of Rs 2,200. This implies an upside of 23.7%. In Q2FY24, its net profit grew by 23.1% YoY to Rs 329.1 crore but its revenue fell 1.8% YoY. 

Analysts Vinod Chari, Swati Jhunjhunwala and Arshia Khosla attribute its net profit growth to strong performance in the industrial and distribution segments, which have expanded by 23% and 20% YoY respectively. They add that the firm’s EBITDA margin benefitted from lower commodity costs and a larger share of high-powered products in the mix. The analysts believe that the company’s market leadership helped increase its margin, as it was able to maintain its prices despite low input costs.

Chari, Jhunjhunwala and Khosla see sustainable long-term growth in the domestic power market and believe that the company is well-positioned to adapt to the new emission norms. They expect the firm’s net profit to grow at a CAGR of 15.7% over FY23-25.  

2. Ashoka Buildcon:

HDFC Securities maintains its ‘Buy’ call on this highway developer with a target price of Rs 202, indicating an upside of Rs 44.5%. In Q1FY24, the company’s net profit increased by 76.4% YoY to Rs 112.3 crore, while its revenue grew by 19% YoY to Rs 2,195.3 crore, in line with the brokerage's estimates. 

According to analysts Parikshit D Kandpal, Nikhil Kanodia and Manoj Rawat, the growth in EBITDA margin (up 463 basis points QoQ to 9.2%) is from declining overhead expenses. As the company didn't receive any new orders in Q2FY24, its order book stands at Rs 14,800 crore. The company has set its FY24 inflow guidance at Rs 5,000-6,000 crore due to a shorter ordering period in an  election year, and weaker-than-expected NHAI ordering. 

Despite these challenges, the analysts remain optimistic about Ashoka Buildcon on the back of its “strong order book, improving visibility on asset monetization, and likely cash inflow from asset monetization”.

3. JK Cement:

Motilal Oswal reiterates its ‘Buy’ call on this cement manufacturer with a target price of Rs 3,900. This indicates an upside of 13.9%. In Q2FY24, the company reported a 58.5% YoY rise in net profit to Rs 178.1 crore, while its revenue grew by 23.7% YoY. According to analysts Sanjeev Kumar Singh and Mudit Agarwal, the EBITDA of Rs 4,700 crore is led by higher white cement volumes in its UAE subsidiary, JK Cement (Fujairah), and lower costs.” The white cement volume included a one-off large order (40,000-tonne shipment) to Australia.

The management of JK Cement expects demand to remain strong, barring some moderation in November 2023 due to festivals and state elections. The analysts state that cement prices have increased in the company’s key markets. They say, “JK cement has shown strong volume growth, aided by capacity expansion,” and estimate its volumes to grow at a 12% CAGR over FY24- 26, higher than the industry’s average growth rate. 

4. GE T&D India:

ICICI Securities maintains its ‘Buy’ rating on this industrial machinery company and raises the target price to Rs 460 from Rs 315. This implies an upside of 19%. In Q2FY24, the company posted a net profit of Rs 75.6 crore, compared to a net loss of Rs 13.5 crore in Q2FY23. Its revenue fell marginally by 0.4% YoY to Rs 697.8 crore.  

Analysts Mohit Kumar, Ashwani Sharma, Bharat Kumar Jain and Nikhil Abhyankar remain positive about the company as its order inflow in Q2 grew by 121% YoY and operating margins expanded by 791 bps YoY to 8.7%. They expect an uptick in demand from the transmission segment, stating, “Transmission capital expenditure is likely to see a huge uptick, driven by the need to build renewables infrastructure. To accelerate the build-out, the government has launched a Rs 2.4 lakh crore plan for the new grid.”

The analysts cite the firm’s robust order pipeline and improving margins for the increased target price. They expect the company’s revenue to grow at a CAGR of 17.8% over FY23-26. 

5. HG Infra Engineering:

Axis Direct maintains its ‘Buy’ rating on this construction & engineering firm but cuts the target price to Rs 1,090 from 1,140. This indicates an upside of 28.9%. In Q2FY24, its net profit increased by 17.3% YoY to Rs 96.1 crore and revenue grew by 20% YoY. 

Although analysts Uttam K Srimal and Shikha Doshi are positive about the company’s prospects, they have reduced the target price due to the management’s revision of order inflow guidance to Rs 5,000-6,000 crore from Rs 8,000-9,000 crore in FY24. The company cites delays in tendering by the National Highways Authority of India for the revision. 

However, the analysts are confident about the company’s strong order pipeline and its focus on diversification. They note, “The company is looking to diversify more in railways, metros, and solar projects. The management expects 20-25% of its order book to come from non-road projects in the next 2-3 years.” 

Overall, they expect the firm’s strong order book, execution prowess, asset monetisation and diversification into other sectors to drive healthy revenue growth. The analysts project the company’s net profit to grow at a CAGR of 16.2% over FY23-25. 

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

(You can find all analyst picks here)

 
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Trendlyne Marketwatch
13 Nov 2023
Market closes lower, Axis Direct upgrades its rating on PI Industries to ‘Buy’ from ‘Hold’

Trendlyne Analysis

Nifty 50closed at 19,443.55 (-82, -0.4%), BSE Sensexclosed at 64,933.87 (-325.6, -0.5%) while the broader Nifty 500closed at 17,318.60 (-42.5, -0.2%). Market breadth is in the red. Of the 2,009 stocks traded today, 779 were in the positive territory and 1,182 were negative.

Indian indices extended the losses from the afternoon session and closed in the red, with the Nifty 50closing at 19,444. The volatility index, Nifty VIX, dropped by 1.4% and closed at 11.2 points. Life Insurance Corporation of India’s Q2FY24 net profit declined by 50.3% YoY to Rs 7,925 crore. Its revenue also decreased by 9.3% YoY.

Nifty Smallcap 100 closed in the green, while Nifty Midcap 100 closed flat with the benchmark index closing lower. Nifty PSU Bank and Nifty Energy closed higher than Friday’s closing level. According to Trendlyne’s sector dashboard, coal emerged as the top-performing sector of the day, with a rise of over 4.9%. 

Most European indices trade in the green except for France’s CAC 40 trading in the red. US indices futures trade lower indicating a negative start. On Friday, Fed Chair Jerome Powell hinted that inflation in the US is still a concern and might require another rate hike to curb the price rise.

  • Relative strength index (RSI) indicates that stocks like Alkem Laboratories, Central Depository Services (India), Global Health and Swan Energy are in the overbought zone.

  • Union Bank of India rises over 7% today, trading near its 52-week high. The company ranks high on Trendlyne's Checklist, scoring 65.4%. It features in a screener of stocks where foreign investors have increased their holdings in the past quarter.

  • BSE surges more than 9% as its net profit jumps by 3.6X to Rs 120.5 crore in Q2FY24. Revenue grows by 59.1%, aided by the corporate services, treasury and transaction segments. It appears in a screener of stocks with increasing revenue for the past four quarters.

  • Nazara Technologies, Inox Wind, Power Mech Projects and Updater Services witness an increase in mutual fund holdings in the past month.

  • Fortis Healthcare is rising despite its Q2FY24 net profit falling 15% YoY to Rs 173.7 crore on a high base in Q2FY23, including a one-time gain of Rs 51.6 crore from the reversal of impairment in its associate firm. Its revenue increases by 10.1% YoY, driven by improved average revenue per operating bed, higher bed occupancy, and a better service mix.

  • Patanjali Keswani, CMD of Lemon Tree Hotels, anticipates the company's occupancy to reach 75% in Q3 (excluding Mumbai Aurika, which is projected to have around 35% occupancy). The company targets to operate around 105 hotels with a total of 10,000 rooms by the end of FY24.

  • Hindustan Copper rises over 6% as its Q2FY24 net profit grows by 134.6% YoY to Rs 60.7 crore. Its revenue grows by 67.8% YoY, aided by increasing volumes. The company appears in a screener of stocks with improving book value per share.

  • Axis Direct upgrades its rating on PI Industries to ‘Buy’ from ‘Hold’ and increases the target price to Rs 4,090 from Rs 4,000. This implies an upside of 11.8%. is optimistic about the company's future, citing an improved product mix, expanding margins, strong brand value, and global presence. It expects the company’s net profit to grow at a CAGR of 26% over FY23-25.

  • Consumer durables stocks like TTK Prestige, Voltas, Amber Enterprises Indiaand Crompton Greaves Consumer Electricalsare falling in trade. All constituents of the broader Nifty Consumer Durablesindex are also trading in the red.

  • Tata Chemicalsis falling as its Q2FY24 net profit falls 31.9% YoY to Rs 428 crore, while its revenue declines by 5.7% YoY due to weak demand in the international markets. R Mukundan, CEO & MD of Tata Chemicals, says, “The demand for soda ash in India and the US was stable. In other markets, softness was observed, especially in the container glass and flat glass sectors, leading to pricing pressure.”

  • Steel Authority of Indiafalls despite reporting a net profit of Rs 1,305.6 crore in Q2FY24, against a net loss of Rs 329.4 crore in Q2FY23, due to lower raw material expenses. Its revenue grows by 13.2% YoY, aided by strong sales from the Bhilai, Rourkela and Bokaro steel plants. The company appears in a screenerof stocks with rising net profit and margins.

  • Goldman Sachs upgrades its rating on India to 'Outperform', citing its strategic appeal. The brokerage says India has the best structural growth prospects, and anticipates mid-teen earnings growth over the next two years.

  • PTC Industries surges more than 3% as its net profit grows by 6.4% YoY to Rs 8.1 crore in Q2FY24. Revenue also grows by 6.4% YoY. However, EBITDA margin contracts by 437 bps YoY due to increased cost of raw materials and employee benefits. The company shows up in a screenerof stocks with improving return on equity (RoE) over the past two years.

  • Protean eGov Technologies’ shares make a flat debut on the bourses at Rs 792. The Rs 490.3 crore IPO has received bids for 23.9 times the total shares on offer.

  • Glenmark Pharmaceuticals is falling as it posts a net loss of Rs 81.9 crore in Q2FY24, as opposed to a net profit of Rs 260.4 crore in Q2FY23. Its revenue rises 6.3% YoY to Rs 3,207.4 crore on the back of robust growth in Europe, which offset a downturn in the US market. The stock shows up in a screenerfor companies with declining net cash flows.

  • Life Insurance Corporation of India falls as its Q2FY24 net profit drops by 50.3% YoY to Rs 7,925 crore. Its revenue also decreases by 9.3% YoY. However, net VNB improves by 11.3% YoY, aided by growth in par and non-par businesses. The company appears in a screener of stocks with declining net cash flow.

  • Unnathan Shekhar, Managing Director of Galaxy Surfactants, says the company's volumes have grown across categories and regions in Q2, with a 9.8% increase in H1FY24, exceeding its estimates. He states that the target for EBITDA per tonne is set at Rs 19,500-20,500, with a double-digit volume growth in FY24.

  • Tech stocks like Persistent Systems, Coforge, MphasiS and L&T Technology Services are falling in trade. All constituents of the broader Nifty IT index are also trading in the red.

  • Oil and Natural Gas Corp falls despite its net profit growing by 65.5% YoY to Rs 13,734.1 crore in Q2FY24. However, revenue declines by 12.9% YoY due to the exploration & production (E&P) and refining & marketing segments. Its EBITDA margin expands by 11 percentage points, aided by a decrease in the cost of raw materials. The company features in a screener of stocks with decreasing revenue for the past two quarters.

  • Eicher Motors rises as its Q2FY24 net profit grows by 54.7% YoY to Rs 1,016.2 crore. Its revenue increases by 19.6% YoY, aided by growth in international markets and non-motorcycle segments. It appears in a screener of stocks nearing their 52-week highs with significant volumes.

  • Morgan Stanley maintains its 'Overweight' rating on Page Industries with a target price of Rs 4,381. The brokerage notes subdued demand in Q2 but points out the company's robust EBITDA margin of 20.8%, despite weak top-line growth. Morgan Stanley predicts a rise in Page Industries' share price in the next 60 days.

  • Jubilant Pharmova is rising as its subsidiary, Jubilant Draximage, receives approval from the US FDA for its abbreviated new drug application (ANDA) for technetium sulfur colloid injection. The injection is used to locate lymph node tumours in patients with breast cancer.

  • Anil Kumar Goel sells a 1.2% stake in Majestic Auto for approx Rs 3.3 crore in a bulk deal on Friday.

  • Coal Indiarises to an all-time high of Rs 337.7 as its Q2FY24 net profit increases by 12.5%YoY to Rs 6,799.8 crore due to lower raw material expenses. Its revenue grows by 9.8% YoY, aided by an increase in the realisation of raw coal. The company appears in a screenerof stocks with strong momentum.

  • Bioconis falling despite its net profit growing by 167.8% YoY to Rs 125.6 crore in Q2FY24. Revenue rises by 49.2% YoY, aided by the biosimilars and research services segments. It appears in a screenerof stocks with increasing cash flow from operations over the past two years.

Riding High:

Largecap and midcap gainers today include Union Bank of India (112.00, 7.13%), Indian Bank (447.05, 6.39%) and YES Bank Ltd. (19.40, 5.43%).

Downers:

Largecap and midcap losers today include Page Industries Ltd. (37,035.85, -3.44%), Biocon Ltd. (227.35, -3.17%) and Abbott India Ltd. (23,149.00, -2.80%).

Movers and Shakers

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

Top high volume gainers on BSE included Hindustan Copper Ltd. (162.05, 8.07%), Motilal Oswal Financial Services Ltd. (1,130.60, 8.04%) and Computer Age Management Services Ltd. (2,683.10, 7.94%).

Top high volume losers on BSE were Glenmark Pharmaceuticals Ltd. (724.45, -5.03%), Swan Energy Ltd. (429.90, -4.35%) and Biocon Ltd. (227.35, -3.17%).

Jubilant Pharmova Ltd. (414.00, 0.41%) was trading at 7.9 times of weekly average. Indian Bank (447.05, 6.39%) and Union Bank of India (112.00, 7.13%) were trading with volumes 6.5 and 5.7 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

34 stocks hit their 52 week highs,

Stocks touching their year highs included - Aurobindo Pharma Ltd. (979.60, 0.03%), BASF India Ltd. (2,862.10, 0.24%) and Canara Bank (404.45, 4.16%).

6 stocks slipped below their 200 SMA including Voltas Ltd. (814.00, -1.84%) and Affle (India) Ltd. (1,018.80, -1.46%).

 
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The Baseline
10 Nov 2023
Which stocks did superstar investors buy in Q2FY24?
By Abhiraj Panchal

Superstar investors like Rekha Jhunjhunwala, Ashish Kacholia and Vijay Kedia are closely watched for their buys and sells. Their picks help investors gain insights into current market trends, and identify interesting stocks. In this piece, we look at some investments made by these superstar investors during Q2FY24.

The chart below compares superstar investors' current portfolio net worth to that of the previous quarter. Net worth is impacted not just by changes in current holdings, but also by new buys and sells. 

All superstars see a rise in their net worth in Q2FY24

Each superstar investor's public portfolios reveal approaches fairly unique to their investing style. The chart below provides a breakdown of the sectors that hold the largest share of each investor’s portfolio. 

Industries preferred by superstars

Rare Enterprises (Rakesh and Rekha Jhunjhunwala) prefers textiles, apparels and accessories stocks, while Sunil Singhania favours chemicals and petrochemicals. Ashish Kacholia and Porinju Veliyath lean towards software and services. Vijay Kedia’s favoured sector is automobiles & auto components, while Dolly Khanna’s preference is skewed towards oil and gas.

Rare Enterprises (Rakesh and Rekha Jhunjhunwala) remains conservative in Q2

Rakesh Jhunjhunwala’s portfolio, now managed by Rekha Jhunjhunwala and Rare Enterprises following his passing, grew by 1.6% QoQ to Rs 39,507 crore in Q2FY24. The firm increased its stakes in six companies and made one new addition in the July-September quarter. Rare Enterprises added a new investment in Karur Vysya Bank, a scheduled commercial bank, with a 4.6% stake buy. 

Rare Enterprises buys a 4.6% stake in Karur Vysya Bank

The investment firm also increased its holding in D B Realty by 0.6% to 2%. The realty company rose by 115.1% in Q2FY24. It also raised its stake in Fortis Healthcare, a healthcare facilities provider, by 0.2% to 4.7%. The stock rose 8.3% in Q2FY24.  

The Jhunjhunwala portfolio added minor stakes in Tata group companies – Tata Motors and Titan. It also bought a minor stake in the IT training services firm, Aptech. 

Ashish Kacholia adds multiple stocks to his portfolio 

Ashish Kacholia’s net worth rose by 25.3% QoQ to Rs 2,541.1 crore in Q2FY24. During the quarter, he added multiple small and micro-cap stocks into his portfolio. He acquired an 8.5% stake in Universal Autofoundry, an auto parts manufacturer. He also expanded into the general industrial sector, securing stakes of 6.4%, 5.4% and 2.2% in Dhabriya Polywood, BEW Engineering and Balu Forge Industries respectively.

Ashish Kacholia buys an 8.5% stake in Universal Autofoundry

The marquee investor also added Vasa Denticity, a healthcare equipment supplier, to his portfolio and now holds 3.8% of the company. He also purchased a 2.8% stake in an education company, NIIT Learning Systems and 1.8% and 1.7% stakes in Aeroflex Industries (iron and steel products company) and Zaggle Prepaid Ocean Services (software and services company), respectively, during the quarter. 

Kacholia increased his stakes in Faze Three and Agarwal Industrial Corp to 5.4% and 4% from the previous holdings of 5.2% and 3.9%, respectively, in Q1.

Sunil Singhania’s Abakkus Fund adds two new small-cap companies

Sunil Singhania’s Abakkus Fund saw its net worth rise by 12.6% QoQ to Rs 2,382.4 crore in Q2FY24. It added TTK Healthcare (a pharma company) and EMS (a utilities company) to its portfolio, with o1.1% and 1.7% stake additions respectively. 

Sunil Singhania adds TTK Healthcare and EMS to the portfolio

Besides the new buys, Abakkus made minor portfolio adjustments through selective purchases. It increased its share in Rupa & Company, a textile firm, by a marginal 0.1%, taking the holding up to 4.2%. It also bought a 0.1% stake in IIFL Securities, and now holds a 3.3% stake. The capital market company’s stock price grew by 42.3% during Q2FY24.

The fund also purchased minor stakes in two industrial machinery manufacturers, Dynamatic Technologies and The Anup Engineering. It now holds 2.9% and 3.9% stakes respectively in these companies.

Vijay Kedia buys stakes in Atul Auto for three consecutive quarters 

Vijay Kedia’s portfolio net worth increased by 41% QoQ to Rs 1,388.8 crore in Q2FY24. He added Om Infra to his public portfolio in Q2 by buying a 2.6% stake in the construction company. 

Vijay Kedia buys a 6% stake in Atul Auto

In a show of continued confidence, Kedia raised his stake in Atul Auto by 6% and now holds 20.9%. This marks the third consecutive quarter of increased investment in this auto components manufacturer since Q3FY23. He also bought a minor stake in Vaibhav Global and now holds 2% of the textile manufacturer. 

Dolly Khanna continues her buying spree from Q1FY24

Dolly Khanna’s net worth rose by 16.5% QoQ to Rs 359.8 crore in Q2FY24. Continuing her buying streak from Q1FY24, Dolly Khanna added four new companies to her portfolio and increased her stakes in three stocks during the July-September quarter. 

The ace investor bought a fresh stake (1.3%) in KCP Sugar & Industries Corp, a small-cap sugar company. She also added another sugar company to her portfolio by purchasing a 1.1% stake in Rajshree Sugars & Chemicals.

Dolly Khanna buys a 1.3% stake in KCP Sugar & Industries Corp

The two other new additions to the superstar’s portfolio include Salzer Electronics (an electrical products manufacturer) and Prakash Industries (an iron & steel products company). She bought 1.1% and 1% stakes in them respectively. 

Khanna increased her stake in Prakash Pipes by 0.5% to 3.2% and raised her holding in Talbros Automotive Components by 0.1% to 1.6%. She also added a minor stake in Control Print. 

Porinju Veliyath adds three new companies to his portfolio

Porinju Veliyath’s net worth grew by 38% QoQ to Rs 208.7 crore in Q2FY24. He added three new companies to his portfolio and increased his stake in one company. His new additions include Arrow Greentech (a plastic products maker), in which he bought a 1.1% stake. He also purchased a 1% stake in Singer India (a household appliances firm) and P G Foils (an aluminium company). 

Porinju buys a 1.1% stake in Arrow Greentech

Porinju increased his stake in Aurum Proptech by 0.2% to 3.5%. The IT consulting & software firm gained 6.4% in Q2FY24.

Mohnish Pabrai continues to invest in Edelweiss

Mohnish Pabrai’s net worth in Q2FY24 increased by 25.6% QoQ to Rs 1,364.9 crore. He increased his stake in Edelweiss Financial Services for the fourth consecutive quarter with an additional purchase of 0.1%. 

      Mohnish Pabrai buys a 0.1% stake in Edelweiss Financial Services

 
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The Baseline
10 Nov 2023
Five Interesting Stocks Today

1. Hindustan Petroleum Corporation: 

This refineries/petro-products firm rose 6.3% on November 7 after reporting a net profit of Rs 5,827 crore in Q2FY24, against a net loss of Rs 2,475.7 crore in Q2FY23. This turnaround was due to higher refining margins and volumes. According to Trendlyne’s Technicals, the company rose 17.4% in the past week, outperforming the Nifty Oil & Gas index by 14.1%. The company also beat Trendlyne Forecaster's profit estimates by 55.7%.

The stock was recently in the news after rising 7.5% on November 8, aided by a 10% decline in Brent crude oil prices the previous week. This surge in stock price has placed the company in a screener of stocks with strong momentum.

The management plans to upgrade its Vizag refinery, to increase production by 67% to 15 metric tonnes. This upgrade will be completed by Q4FY24, and is expected to increase the firm’s refining margins by 25% per barrel. Additionally, HPCL’s Rs 37,000 crore investment in the Barmer refinery project in Rajasthan will help the company enter the oil to chemical segment.

In Q2, HPCL's gross debt was Rs 51,800 crore, a decrease of 24% YoY. However, debt levels are still relatively high due to an ambitious capex plan of Rs 75,000 crore over the next five years, and an annual spending rate of approximately Rs 14,000-15,000 crore. 

ICICI Securities, for the rest of FY24, expects lower gross refining margins (GRMs) but stronger retail margins compared to Q2 averages. It projects increased volumes in both the refining and marketing segments, driven by the expansion of Vizag facility and the construction of the Barmer Refinery. It also foresees a recovery in fuel consumption by H2FY24. The broker maintains a ‘Buy’ rating on the stock.

2. Ratnamani Metals & Tubes:

This iron & steel company has risen 18.6% over the past week to touch its all-time high of Rs 3,465 per share. The rise came after it announced a 65.9% YoY growth in its Q2FY24 net profit to Rs 163.4 crore on November 2. Revenue increased by 25.7% YoY due to growth in the steel tubes & pipes and bearing rings segments. Its net profit beat Trendlyne's Forecaster estimates by 40.6%, but revenue missed by 1.9%.

The company’s net profit has improved on the back of its EBITDA margin expanding by 554 bps YoY to 22% in Q2FY24 due to a  better product mix.  The stock appears in a screenerfor companies with  quarterly growth in net profit and profit margin. However, its order book fell by 8% YoY to Rs 2,975 crore, which includes Rs 607 crore worth of export orders. The order book fell due to weak demand in the carbon steel segment. 

Manoj Sanghvi, the business head, said, “In the future, we expect to see good traction in the core energy segment, and other critical applications across various industrial segments. This will help us deepen our customer base by expanding the product basket.”

Post results, Keynote Capitals downgraded the stock to a ‘Neutral’ rating from ‘Buy’, with a target price of Rs 3,113 per share. This indicates a potential downside of 6.9%. The brokerage believes that it is difficult for the company to maintain its high growth levels in net profit and revenue. It expects the company’s sales to grow at a CAGR of 17.3% over FY22-26.

3. Prince Pipes & Fittings:

This pipes manufacturer rose 15.3% in intraday trade on Wednesday, after it announced its Q2FY24 results. The street cheered as the company was back in the black on a YoY basis, with a net profit of Rs 70.6 crore in Q2FY24, against a loss of Rs 24.1 crore in Q2FY23. Its profitability has improved on the back of normalising Poly Vinyl Chloride (PVC) prices, improved product mix, and better pricing. Its EBITDA margin shot up to 14.3% from -1.8% in Q2FY23. The company also beat Trendlyne Forecaster’s profit estimates by 55.9%. It shows up in a screener for companies with improving cash flows and high durability scores. 

The management has guided for an improvement in sales volumes, which will be on par with its peers. Over the past few quarters, the firm’s volume growth had lagged behind the industry’s due to its limited presence in key segments such as high-density Polyethylene (HDPE) pipes (used in government infrastructure projects). Prince Pipes has expanded its production capacity for HDPE pipes, which helped improve volumes in Q2. Its volume growth had been impacted by unfavourable pricing, which the firm rectified with its recent price adjustments. 

The management expects PVC prices to remain stable and has guided for an  EBITDA margin of 12-14% over the medium term. ICICI Securities believes that the company will see healthy revenue growth, led by improved demand from the plumbing, infrastructure and agriculture sectors. 

4. Jyothy Labs:

This FMCG company hit its all-time high of Rs 424.7 on Thursday, marking a 14.9% rise over the past week. The spike came after the company reported 61.1% YoY growth in its Q2FY24 net profit to Rs 104.2 crore, with revenue increasing by 12.2% YoY to Rs 745.6 crore. It beat Trendlye Forecaster’s net profit estimates by 14%, while revenue met the forecast. The company features in a screener for durable stocks with improving cash flow.

Jyothy Labs’ expansion into new geographies, market share gain and strength across segments have been key factors behind its growth. The EBITDA margin expanded by 628 basis points YoY to 18.5% due to a reduction in raw material costs. The expansion was primarily in the fabric care segment (43% of total sales), where margins grew by 1,100 basis points to 26.1%. All segments, except for household insecticides, reported double-digit growth. The fabric care and dishwashing segments saw revenues rise by 11% YoY and 10% YoY respectively, while personal care reported a 22% YoY increase. The company has managed to sustain demand despite constant inflationary pressures affecting FMCG products. 

However, the management has noted a rise in competitive pressures and is focused on boosting volumes and maintaining growth rates. Managing Director M R Jyothy stated, “Jyothy Labs will handle increasing competition with promotional spending and wider distribution.” For FY24, the management expects sales to continue their growth trajectory, driven by volume. 

ICICI Securities maintains its ‘Buy’ call on Jyothy Labs, projecting an EBITDA and net profit CAGR of 31% and 39%, respectively, over FY24-25. This outlook is based on the management’s focus on market share gains and volume growth. 

5. Trent

This retailing company has risen around 11.2% in the past four days, and touched its all-time high today, after strong Q2 earnings. Trent’s net profit surged by 152.3% YoY to Rs 234.7 crore, beating Trendlyne’s Forecaster estimates by 69.8%. This was driven by lower finance expenses. Its revenue also improved by 52.7% YoY, aided by growth in its garments and emerging categories (which include beauty and personal care, innerwear, and footwear). 

With a 19.7% increase in the past month, Trent has outperformed its sector by 15.6%. The rise in share price places it in a screener of companies with strong momentum.

Its strong performance in Q2 is led by its like-for-like (LFL) growth of 10% and retail expansion. According to ICICI Securities, Trent’s LFL growth is the highest in the apparel space. During the quarter, the company opened six Westside stores and 27 Zudio stores, taking the total store count to 222 and 411, respectively. Noel N Tata, the Chairman, said, “We will expand and deepen our store presence with the aim of being closer to customers.”

The company’s Star business (hypermarket and supermarket store chain) has also reported a 30% YoY increase in revenue, led by strong LFL and volume growth. Axis Securities remains positive about Trent’s performance despite the muted consumer demand environment. It maintains its ‘Buy’ rating with an upgraded target price of Rs 2,750. The brokerage expects the company to deliver strong sales growth in the coming quarters, driven by rapid store expansion.

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
10 Nov 2023
Market closes higher, Hindalco Industries' Q2 net profit drops by 0.4% YoY to Rs 2,196 crore

Trendlyne Analysis

Nifty 50 closed at 19,425.35 (30.1, 0.2%) , BSE Sensex closed at 64,904.68 (72.5, 0.1%) while the broader Nifty 500 closed at 17256.60 (37.7, 0.2%), of the 1,994 stocks traded today, 1,014 were gainers and 935 were losers.

Indian indices closed marginally higher, with the benchmark Nifty 50 index closing at 19,425.4 points. The Indian volatility index, Nifty VIX, rose 1.2% and closed at 11.1 points. Mahindra & Mahindra closed 1.8% lower after its Q2FY24 net profit declined 15.3% YoY to Rs 2,347.8 crore due to higher cost of materials consumed and employee expenses.

Nifty Smallcap 100 and Nifty Midcap 100 closed in the green, outperforming the benchmark index. Nifty Energy and Nifty Infra closed higher than their Thursday close. According to Trendlyne's sector dashboard, Metals & Mining was the top-performing sector of the day as it rose 1%.

Major Asian indices closed in the red, except for India’s BSE Sensex closing flat. European stocks traded lower amid weak global cues. US index futures traded flat, indicating a cautious start to the trading session. Brent crude oil futures traded in the green but are set to post weekly losses for a third straight week.

  • United Spirits sees a short buildup in its November 30 future series as its open interest rises 17.7% with a put-call ratio of 0.4.

  • Maruti Suzuki sees nine analyst target price upgrades and one recommendation upgrade in the past month. Nestle India, HCL Technologies, and Bajaj Auto see seven analyst target price upgrades over the same time period.

  • Hindustan Aeronautics rises to an all-time high of Rs 2,110.9 as its Q2FY24 net profit grows 1.3% YoY to Rs 1,236.7 crore due to lower impairment and work-in-progress expenses. Its revenue increases by 9.5% YoY. The company appears in a screener of stocks with improving book value per share.

  • Shyam Metalics and Energy is rising as its net profit surges by 3.2X YoY to Rs 484.1 crore. The rise is due to deferred and previous year tax returns. However, its revenue is down by 4.7% YoY. The company features in a screener of stocks near their 52-week highs with significant volumes.

  • Axis Direct keeps its ‘Buy’ rating on HG Infra Engineering with a target price of Rs 1,090. This implies an upside of 26.4%. The brokerage is positive about the company’s prospects given its robust order book, execution prowess and asset monetisation. It expects the firm’s net profit to grow at a CAGR of 16% over FY23-25.

  • Engineers India's Q2FY24 profit rises 69.6% YoY to Rs 127.5 crore, while its revenue falls marginally by 2.9% YoY. Its profit rises due to a fall in sub-contracts, and material and equipment expenses. The company features in a screener for stocks with no debt.

  • Petronet LNG is falling as 61 lakh shares (0.4% equity) amounting to Rs 118.4 crore change hands, according to reports.

  • Hindalco Industries falls as its Q2FY24 net profit drops by 0.4% YoY to Rs 2,196 crore on the back of higher raw material and finance expenses. Its revenue decreases by 3.6% YoY due to lower sales in the Novelis and aluminium upstream segments. It appears in a screener of stocks with declining net cash flow.

  • GR Infraprojects plunges over 4% as its Q2FY24 net profit falls by 35.4% YoY to Rs 217.2 crore. Revenue declines by 11.9% YoY due to fewer orders from the engineering, procurement and construction (EPC) segment. However, the company has bagged an order worth Rs 200 crore from RITES for a passenger ropeway in Jammu and Kashmir.

  • Campus Activewear falls to an all-time low of Rs 237.8 as its Q2FY24 net profit drops by 97.8% YoY to Rs 0.3 crore. Its revenue also decreases by 22.4% YoY amid channel inventory corrections, and EBITDA margin drops by 360 bps YoY due to higher inventory and employee benefit expenses. The company appears in a screener of stocks with declining net profit and margins.

  • Srikrishnan H, Managing Director of Karnataka Bank, reports an 8-9% increase in deposit growth. He highlights the pressure on NIMs due to rising cost of funds but retains a NIM guidance of 3.5-3.7% for FY24. He expects a rise in NII, led by growth in advances.

  • Foreign institutional investors take out Rs 931.1 crore from the equity market over the past week, according to Trendlyne's FII dashboard. Meanwhile, index options witness the highest outflow of Rs 1 lakh crore from foreign investors. Mutual Funds invest Rs 624.5 crore in the equity market over the same period.

  • Mahindra & Mahindra is falling as its Q2FY24 net profit declines 15.3% YoY to Rs 2,347.8 crore due to higher cost of materials consumed and employee expenses. Its revenue increases by 15.3% YoY led by robust growth in the automotive segment.

  • Subrosis surging as its net profit jumps by 175% YoY to Rs 27.8 crore in Q2FY24. Revenue grows by 17% YoY to Rs 813.4 crore, contributing to a 305 bps YoY expansion in EBITDA margin. It appears in a screenerof stocks with improving book value per share over the past two years.

  • Force Motors rises sharply as its Q2FY24 net profit jumps 387.6% YoY to Rs 93.9 crore due to lower inventory, finance and capitalized expenses. Its revenue improves 41.9% YoY, aided by robust sales in the domestic and export segments. The company appears in a screener of stocks nearing their 52-week highs.

  • The Society of Indian Automobile Manufacturers (SIAM) reports a 15.8 YoY rise in passenger vehicle sales, reaching 3.9 lakh units in October. Meanwhile, two-wheeler sales have risen by 20% to around 19 lakh.

  • Honasa Consumer (Mamaearth) falls 11.7% from its issue price of Rs 324 per share since its listing on Tuesday.

  • ESAF Small Finance Bank's shares debut on the bourses at an 18.3% premium to the issue price of Rs 60. The Rs 463 crore IPO has received bids for 73.2 times the total shares on offer.

  • Smallcap World Fund sells a 0.5% stake in Aegis Logistics for approx Rs 54 crore in a bulk deal on Thursday.

  • GlaxoSmithKline Pharmaceuticals rises as its Q2FY24 net profit increases by 12.5% YoY to Rs 217.5 crore due to lower raw material expenses. Its revenue also grows by 4.9% YoY, aided by the anti-infectives and dermatology segments. The company appears in a screener of stocks nearing their 52-week highs with significant volumes.

  • Aptus Value Housing Finance is rising as 74 lakh shares (1.5% equity), amounting to Rs 213.4 crore, reportedly change hands in a block deal.

  • Muthoot Finance is falling despite its net profit rising by 14.3% YoY to Rs 991 crore and revenue increasing by 22.5% YoY. This growth is driven by healthy demand for gold loans across the urban and semi-urban markets. The stock shows up in a screener for companies with zero promoter pledges.

  • NBCC India falls as its Q2FY24 net profit decreases by 16.6% YoY to Rs 79.6 crore due to a one-time land purchase expense and higher work & consultancy costs. However, its revenue grows by 1.7% YoY, aided by growth in the project management consultant segment. The company appears in a screener of stocks with growing net profit and margins.

  • Garden Reach Shipbuilders & Engineers receives an order worth Rs 840 crore from the National Centre for Polar and Ocean Research (NCPOR) for the construction and delivery of an ocean research vessel. The stock shows up in a screener for companies with improving net cash flows over the past two years.

  • Aurobindo Pharma is rising as its Q2FY24 net profit jumps by 84.9% YoY to Rs 757.2 crore and EBITDA margin expands by 485 bps YoY to 19.4%. Its revenue increases by 25.8% YoY, driven by the US formulations segment. The stock shows up in a screener for companies with a sequential increase in net profit over the past three quarters.

Riding High:

Largecap and midcap gainers today include Vedanta Ltd. (245.25, 4.27%), Power Finance Corporation Ltd. (287.70, 3.75%) and NMDC Ltd. (168.70, 3.47%).

Downers:

Largecap and midcap losers today include Zee Entertainment Enterprises Ltd. (248.95, -5.29%), United Spirits Ltd. (1,044.35, -4.81%) and Indian Oil Corporation Ltd. (98.05, -4.76%).

Volume Rockets

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

Top high volume gainers on BSE included Nesco Ltd. (756.45, 11.88%), Caplin Point Laboratories Ltd. (1,199.00, 8.36%) and IFB Industries Ltd. (921.70, 7.60%).

Top high volume losers on BSE were Zee Entertainment Enterprises Ltd. (248.95, -5.29%), AstraZeneca Pharma India Ltd. (4,652.90, -5.29%) and United Spirits Ltd. (1,044.35, -4.81%).

Campus Activewear Ltd. (258.85, -1.95%) was trading at 14.7 times of weekly average. Muthoot Finance Ltd. (1,273.25, -3.05%) and Engineers India Ltd. (137.70, 6.54%) were trading with volumes 12.4 and 10.0 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

24 stocks hit their 52 week highs, while 4 stocks tanked below their 52 week lows.

Stocks touching their year highs included - Ajanta Pharma Ltd. (1,887.85, 0.68%), Aurobindo Pharma Ltd. (979.70, 3.04%) and Caplin Point Laboratories Ltd. (1,199.00, 8.36%).

Stocks making new 52 weeks lows included - Petronet LNG Ltd. (194.70, -2.67%) and Rain Industries Ltd. (144.10, -1.54%).

8 stocks climbed above their 200 day SMA including EID Parry (India) Ltd. (503.35, 2.36%) and Chemplast Sanmar Ltd. (447.30, 2.05%). 9 stocks slipped below their 200 SMA including G R Infraprojects Ltd. (1,106.85, -3.93%) and SKF India Ltd. (4,615.00, -0.77%).

 
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Trendlyne Marketwatch
09 Nov 2023
Market closes lower, Welspun Corp posts a net profit of Rs 384.7 crore in Q2FY24

Trendlyne Analysis

Nifty 50closed at 19,395.30 (-48.2, -0.3%), BSE Sensexclosed at 64,832.20 (-143.4, -0.2%) while the broader Nifty 500closed at 17,218.90 (-40.8, -0.2%). Market breadth is in the red. Of the 1,984 stocks traded today, 786 were on the uptick, and 1,152 were down.

Indian indices pare the gains from the afternoon session and close in the red, with the Nifty 50closing at 19,395. The volatility index, Nifty VIX, dropped by 0.5% and closed at 11 points. Global rating agency Moody’s retained India’s GDP growth rate at 6.7% for 2024. However, the report pointed out weak exports to be sustained by demand in the domestic market.

Nifty Midcap 100 closed in the green, while Nifty Smallcap 100 closed lower following the benchmark index. Nifty Auto and Nifty Realty closed higher than Wednesday’s closing level. According to Trendlyne’s sector dashboard, coal emerged as the top-performing sector of the day, with a rise of over 1.9%. 

Most European indices trade in the green except for the benchmark Euronext 100 index trading lower. US indices futures trade flat as investors look for a cautious start. The data released by Eurostat indicated that the Eurozone’s September retail sales contracted by 2.9% YoY against estimates of a 3.1% decline.

  • Money flow index (MFI) indicates that stocks like Alkem Laboratories, BSE, Multi Commodity Exchange of India and Ratnamani Metals & Tubes are in the overbought zone.

  • Samvardhana Motherson International is falling as its net profit declines by 18.2% YoY to Rs 201.5 crore in Q2FY24. However, revenue grows by 28.5%, aided by sales growth across wiring harness, modules & polymer products, vision systems and integrated assemblies. It appears in a screener of stocks with reduced mutual fund holdings over the past quarter.

  • Mutual Funds' net equity inflow rises MoM to Rs 19,932 crore in October, according to data released by the Association of Mutual Funds in India (AMFI). The total AUM (assets under management) reaches Rs 46.7 lakh crore

  • Adani Ports & Special Economic Zone is falling despite its net profit rising by 4.2% YoY to Rs 1,747.8 crore. This modest growth is due to the write-off of a past MAT credit on the election of a new tax regime. However, its revenue is up 27.6% YoY, led by its port and SEZ activities.

  • Finolex Cables rises as its Q2FY24 net profit grows by 178.4% YoY to Rs 154.2 crore due to lower inventory expenses. Its revenue increases by 8.8% YoY, aided by rising sales of electrical cables and copper rods. The company appears in a screener of stocks with improving net cash flow.

  • BoB Capital Markets upgrades its rating on Alkem Laboratories to ‘Hold’ from ‘Sell’ and raises the target price to Rs 3,850 from Rs 3,300. This implies a downside of 9.8%. The brokerage cites the recovery in the firm’s international business and expanding margins for the revision.

  • Eris Lifesciences reaches a 52-week high following the signing of a definitive agreement to purchase Biocon Biologics’ India-based branded formulations business in nephrology and dermatology for Rs 366 crore. This acquisition marks Eris' entry into nephrology and will also enable it to strengthen its position in dermatology.

  • ASK Automotive's Rs 833.9 crore IPO gets bids for 51.1X the available 2.1 crore shares on offer on the third day of bidding. The retail investor quota gets bids for 5.7X the available 1 crore shares on offer.

  • Nazara Technologies is rising as its net profit grows by 1.6% QoQ to Rs 19.8 crore in Q2FY24. Revenue increases by 16.8% QoQ, driven by the e-sports segment. It shows up in a screener of stocks with expanding return on capital employed (RoCE) over the past two years.

  • Power Finance Corp rises to an all-time high of Rs 280.5 as its Q2FY24 net profit grows by 28.3% YoY to Rs 3,847.4 crore due to lower impairment expenses on financial instruments. Its revenue increases by 17% YoY, aided by higher interest and dividend income. The company appears in a screener of stocks with increasing net profit and margins.

  • Gunjan Shah, MD and CEO of Bata India, highlights that the past few quarters have been challenging for the company due to muted discretionary demand. He adds that the company aims for double-digit profit growth. Shah outlines plans to open 40-50 new stores each quarter, with 80% being franchise-based expansions.

  • Brigade Enterprisesrises to an all-time high of Rs 750.2 as its Q2FY24 net profit jumps 72.1% YoY to Rs 133.5 crore due to lower sub-contractor and license & plan approval expenses. Its revenue increases by 54.3% YoY, aided by growth in the real estate, hospitality and leasing segments. The company appears in a screenerof stocks with strong annual EPS growth.

  • MTAR Technologies plunges more than 9% as its net profit declines by 17.1% YoY to Rs 20.4 crore in Q2FY24. However, its revenue grows by 32.2% YoY, aided by new clean energy contracts. Parvat Srinivas Reddy, the MD of the company, says, “We have revised our annual revenue guidance for FY24 to Rs 670-700 crore from the earlier forecast of Rs 830-860 crore."

  • Lupin is rising as its Q2FY24 net profit jumps 277.3% YoY to Rs 489.5 crore and revenue grows 21.5% YoY led by robust sales growth in the US. Its EBITDA margin expands by 800 bps YoY to 19.4%. The stock shows up in a screener for companies with improving cash flows and high durability scores.

  • Somany Ceramics rises with a 99.5% YoY surge in Q2FY24 net profit to Rs 29.3 crore due to lower raw material and power & fuel expenses. Its revenue increases by 6% YoY, aided by improved tiles and bathware sales. The company appears in a screener of stocks with improving book value per share.

  • According to a poll of economists, India's CPI inflation is expected to moderate to 4.8% in October from 5% in September, driven by a reduction in food inflation. However, there is caution regarding a potential increase in vegetable prices.

  • Gujarat Narmada Valley Fertilizers & Chemicals falls as its Q2FY24 net profit drops by 23.5% YoY to Rs 182 crore. Its revenue decreases by 16.5% YoY due to weaker fertilizer and chemical sales. The company also announces a buyback of 5.5% equity (84.8 lakh shares) at Rs 770 per share, amounting to Rs 652.8 crore, with a record date of November 24.

  • IRB Infrastructure is rising as its monthly toll collection rises 30% YoY to Rs 447.7 crore in October. The stock shows up in a screener for companies with improving RoCE over the past two years.

  • Welspun Corp surges to its all-time high of Rs 495.9 per share as it posts a net profit of Rs 384.7 crore in Q2FY24 compared to a net loss of Rs 56.6 crore in Q2FY23. Revenue rises by 106.7% YoY, aided by improved pipe and building material sales. It features in a screener for high-return, technically strong stocks.

  • Bharat Heavy Electricals falls as it reports a net loss of Rs 238.1 crore in Q2FY24, against a net profit of Rs 12.1 crore in Q2FY23, due to higher raw material expenses. Its revenue decreases by 2.1% YoY on the back of a downturn in the segment. The company appears in a screener of stocks with significant drops in TTM net profit.

  • RBI Governor Shaktikanta Das says the global economy is facing various macro and geopolitical shocks. He adds that global growth is muted due to higher inflation. Das highlights that although inflation is declining in India, it is exposed to food price shocks. He also states that India's growth is on track.

  • Tata Power falls despite its Q2FY24 net profit rising 6.9% YoY to Rs 875.5 crore due to lower fuel expenses. Its revenue grows by 13% YoY, aided by growth in the generation, renewables and transmission & distribution segment. The company appears in a screener of stocks with rising net profit and margins.

  • Biocon is trading flat as its subsidiary, Biocon Biologics, enters into an agreement with Eris Lifesciences to sell its dermatology and nephrology branded formulations business units for Rs 366 crore.

  • Ashish Kacholiasells a 0.5% stake in SJS Enterprisesfor approx Rs 10.5 crore in a bulk deal on Wednesday.

  • Mazagon Dock Shipbuildersis rising as its Q2FY24 net profit surges by 55.6% YoY to Rs 332.9 crore. Revenue grows by 7.4% YoY, aided by increased order book. Its EBITDA margin expands by 279 bps YoY, owing to lower costs for raw materials and finance. The company appears in a screenerof stocks with improving cash flow and good durability.

Riding High:

Largecap and midcap gainers today include Power Finance Corporation Ltd. (277.30, 5.22%), UNO Minda Ltd. (631.35, 4.88%) and Mahindra & Mahindra Ltd. (1,552.05, 4.35%).

Downers:

Largecap and midcap losers today include Endurance Technologies Ltd. (1,623.90, -5.84%), Supreme Industries Ltd. (4,225.50, -3.67%) and Tube Investments of India Ltd. (3,152.05, -3.08%).

Movers and Shakers

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

Top high volume gainers on BSE included Sun Pharma Advanced Research Company Ltd. (256.80, 8.08%), Aegis Logistics Ltd. (315.85, 7.41%) and BASF India Ltd. (2,846.00, 6.86%).

Top high volume losers on BSE were KRBL Ltd. (353.90, -8.96%), Mishra Dhatu Nigam Ltd. (359.85, -7.48%) and SKF India Ltd. (4,650.60, -6.68%).

Eris Lifesciences Ltd. (912.25, 1.61%) was trading at 17.2 times of weekly average. FDC Ltd. (386.05, 5.51%) and Esab India Ltd. (6,399.95, -0.91%) were trading with volumes 13.3 and 10.7 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

40 stocks hit their 52 week highs, while 2 stocks were underachievers and hit their 52 week lows.

Stocks touching their year highs included - Aurobindo Pharma Ltd. (950.75, 1.52%), BASF India Ltd. (2,846.00, 6.86%) and Coal India Ltd. (323.55, 1.94%).

Stocks making new 52 weeks lows included - Adani Wilmar Ltd. (300.55, -1.83%) and Campus Activewear Ltd. (264.00, -0.99%).

5 stocks climbed above their 200 day SMA including Au Small Finance Bank Ltd. (690.55, 2.25%) and Bata India Ltd. (1,572.15, 0.98%). 11 stocks slipped below their 200 SMA including KRBL Ltd. (353.90, -8.96%) and SKF India Ltd. (4,650.60, -6.68%).

 
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Trendlyne Marketwatch
08 Nov 2023
Market closes higher, Arvind Fashions reports a loss of Rs 24.2 crore in Q2FY24

Trendlyne Analysis

Nifty 50 closed at 19,443.50 (36.8, 0.2%) , BSE Sensex closed at 64,977.72 (35.3, 0.1%) while the broader Nifty 500 closed at 17,259.70 (71.9, 0.4%), of the 1,994 stocks traded today, 1,079 showed gains, and 867 showed losses.

Indian indices closed in the green, with the benchmark Nifty 50 index closing at 19,443.5 points. The Indian volatility index, Nifty VIX fell 1.3% and closed at 11 points. Deepak Nitrite closed 2% higher after its Q2FY24 net profit grew 17.5% YoY to Rs 205.1 crore due to lower raw material expenses.

Nifty Smallcap 100 and Nifty Midcap 100 closed higher, outperforming the benchmark index. Nifty Pharma and Nifty Realty closed higher than their Tuesday close. According to Trendlyne's sector dashboard, Forest Materials was the top-performing sector of the day as it rose 2.6%.

Major Asian indices closed mixed after starting the trading session on a positive note. European indices traded flat or lower amid mixed global cues. US index futures traded marginally flat, indicating a cautious start to the trading session. Brent crude oil futures traded in the red after falling 4.4% on a volatile day on Tuesday.

  • Relative strength index (RSI) indicates that stocks like Trent, Indian Oil Corp, Multi Commodity Exchange of India and CreditAccess Grameen are in the overbought zone.

  • Infosys signs a three-year strategic collaboration agreement (SCA) with Amazon Web Services (AWS). The collaboration aims to deliver technology transformation and industry-specific solutions to the financial sector across Europe, the Middle East and Africa.

  • Granules India, Aurobindo Pharma, Abbott India, eClerx Services and Apollo Hospitals Enterprise rise 9.9%, 9.7%, 8%, 6.7% and 5.9% over the past week, respectively, ahead of their Q2FY24 results tomorrow.

  • According to reports, the Centre is considering lowering import taxes on certain electric vehicles from the UK, in order to secure a free-trade deal by the end of the year.

  • HDFC Securities maintains its ‘Buy’ rating on Federal Bank and raises its target price to Rs 190 from Rs 175, indicating an upside of 29.4%. The brokerage is optimistic about the bank’s prospects due to its ability to monetise its partnerships, robust loan growth and rapid growth in high-yielding products.

  • Godrej Industries is falling as its Q2FY24 net profit decreases by 44.1% YoY to Rs 87.3 crore. Its revenue declines by 2% YoY due to a slowdown in the chemicals and realty segments. The company shows up in a screener for stocks with high promoter stock pledges.

  • Dollar Industries rises more than 4% as its net profit grows by 43.9% YoY to Rs 24.9 crore in Q2FY24. Revenue increases by 21.2% YoY, aided by an increase in the number of distributors. It appears in a screener of stocks with high volume and high gain.

  • ASK Automotive's Rs 833.9 crore IPO gets bids for 0.9X the available 2.1 crore shares on offer on the second day of bidding. The retail investor quota gets bids for 1.3X the available 1 crore shares on offer.

  • Protean eGov Technologies' Rs 490.3 crore IPO gets bids for 9.4X the available 43.8 lakh shares on offer on the third day of bidding. The retail investor quota gets bids for 7X the available 21.1 lakh shares on offer.

  • B Bhaskara Rao, CMD of Krishna Institute of Medical Sciences (KIMS), expects a 100-200 bps increase in occupancy for H2FY24, with average revenue per occupied bed (ARPOB) reaching Rs 32,000-33,000. He also highlights the company's plans to add 1,500-1,800 beds in the next 18-24 months, aiming to boost its revenue.

  • Deepak Nitrite rises as its Q2FY24 net profit grows by 17.5% YoY to Rs 205.1 crore due to lower raw material expenses. However, its revenue declines by 9% YoY on the back of falling advanced intermediaries and phenolics segment. The company appears in a screener of stocks with improving net cash flow.

  • Gujarat Pipavav Port rises sharply as its Q2FY24 net profit jumps by 28% YoY to Rs 92.3 crore due to lower operating expenses. Its revenue increases by 11.6% YoY. The company appears in a screener of stocks with growing net profit and margins.

  • Greaves Cottonfalls as it reports a net loss of Rs 190.8 crore in Q2FY24, against a net profit of Rs 28.9 crore in Q2FY23, on account of provisions for FAME subsidy. However, its revenue improves by 4% YoY, aided by growth in the engines and cables & control levers segments. The company appears in a screenerof stocks with declining net profit and margins.

  • Realty stocks like Swan Energy, Sobha, Prestige Estates Projects, Brigade Enterprisesand Mahindra Lifespace Developersare rising in trade. All the constituents of the broader sectoral index, Nifty Realty, are trading in the green.

  • According to a report by S&P Global Commodity Insights, demand for India's oil products has risen by 1.6% MoM in October, led by increased mobility and consumption during the festive season. It raises its forecast for 2023 oil demand to around 2.6 lakh barrels per day.

  • Arvind Fashions rises despite reporting a loss of Rs 24.2 crore in Q2FY24, compared to a profit of Rs 9.4 crore in Q2FY23. Its revenue rises 11.7% YoY to Rs 201.8 crore. The loss is attributed to a one-time provision for impairment costs. The companyfeatures in a screener for stocks with improving book value per share for the past two years.

  • Mahindra & Mahindra rises as it enters into a share purchase agreement to sell its entire stake in its subsidiary, Mahindra Aerospace Australia (MAAPL), to George Morgan, a director on MAAPL's board. The company appears in a screener of stocks with improving RoCE.

  • Shree Cements is falling despite its net profit rising by 143.6% YoY to Rs 446.6 crore in Q2FY24. Revenue increases by 18.9% YoY, aided by higher sales and capacity utilisation. It features in a screener of stocks where foreign investors have increased their holdings in the past quarter.

  • ICICI Securities downgrades its rating on Varroc Engineering to ‘Add’ from ‘Buy’ but raises the target price to Rs 529 from Rs 406, implying an upside of 14.1%. The brokerage believes the company is currently trading at an expensive valuation but increases the target price, expecting improved profitability due to declining energy and raw material costs, and better cash flows.

  • N Venu, MD and CEO of Hitachi Energy India, reports a 36% sequential growth in orders with a healthy order pipeline across transmission and renewables segments. He highlights that there are supply chain issues but foresees an improvement. He adds that the company targets a 10% EBITDA margin for FY25.

  • Prince Pipes and Fittings rises sharply as it posts a net profit of Rs 70.6 crore in Q2FY24, against a net loss of Rs 24.1 crore in Q2FY23, due to lower raw material expenses. Its revenue grows by 3.3% YoY. The company appears in a screener of stocks with strong momentum.

  • Power Grid Corp of India falls despite its net profit rising by 3.6% YoY to Rs 3,781.4 crore in Q2FY24. Revenue grows by 1% YoY on the back of increased revenue from the transmission, consultation and telecom segments. Its EBITDA margin expands by 340 bps YoY, aided by lower employee benefits and other expenses. The company appears in a screener of stocks with zero promoter pledge.

  • Indian Railways Catering & Tourism Corp falls despite its Q2FY24 net profit rising 30.3% YoY to Rs 294.7 crore. Its revenue grows by 23.2% YoY, aided by the catering, internet ticketing and tourism segment. The company appears in a screener of stocks with improving cash flow from operations.

  • Macquarie maintains its 'Underperform' rating on Zydus Lifesciences with a target price of Rs 490. The brokerage says the company's Q2 earnings were a mixed bag, with revenue and EBITDA missing its estimates by 8% each. Meanwhile, PAT beats estimates by 15%, driven by an increase in other income.

  • Genus Power Infrastructures' arm wins an order worth Rs 2,259.9 crore for the appointment of Advanced Metering Infrastructure Service Providers. This includes designing an advance metering infrastructure system with supply, installation and commissioning of 27.33 lakh smart prepaid meters. Numerous State Electricity Boards have commenced the bidding process to procure the smart meters.

  • Prestige Estates Projects is rising as its Q2FY24 net profit surges 6X YoY to Rs 850.9 crore and revenue increases by 56.6% YoY to Rs 2,236.4 crore, driven by robust demand for housing. The stock shows up in a screener for companies with improving book value over the past two years.

  • Apollo Tyres’ Q2FY24 net profit jumps 2.6X YoY to Rs 474.3 crore, thanks to a sharp decline in raw material costs. Its revenue rises 5.4% YoY, with growth across Asia, Africa and Europe. The stock shows up in a screener for companies with sequentially rising net profits over the past four quarters.

Riding High:

Largecap and midcap gainers today include Hindustan Petroleum Corporation Ltd. (299.50, 7.48%), YES Bank Ltd. (17.95, 6.85%) and Alkem Laboratories Ltd. (4,232.70, 5.10%).

Downers:

Largecap and midcap losers today include Bharat Forge Ltd. (1,034.00, -1.97%), Gland Pharma Ltd. (1,625.20, -1.69%) and Shree Cements Ltd. (26,270.50, -1.56%).

Volume Shockers

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

Top high volume gainers on BSE included Prince Pipes & Fittings Ltd. (720.60, 15.26%), NLC India Ltd. (151.80, 7.51%) and Hindustan Petroleum Corporation Ltd. (299.50, 7.48%).

Top high volume losers on BSE were Mishra Dhatu Nigam Ltd. (388.95, -5.13%), Rain Industries Ltd. (148.30, -4.14%) and Restaurant Brands Asia Ltd. (114.10, -3.43%).

Shoppers Stop Ltd. (657.70, 3.04%) was trading at 12.6 times of weekly average. Gujarat Pipavav Port Ltd. (133.30, 6.51%) and Apollo Tyres Ltd. (410.30, 6.82%) were trading with volumes 9.9 and 9.9 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

40 stocks made 52 week highs,

Stocks touching their year highs included - Aurobindo Pharma Ltd. (936.55, 3.77%), Colgate-Palmolive (India) Ltd. (2,137.65, 0.98%) and DLF Ltd. (595.90, 0.58%).

10 stocks climbed above their 200 day SMA including Prince Pipes & Fittings Ltd. (720.60, 15.26%) and Asian Paints Ltd. (3,095.25, 2.04%). 5 stocks slipped below their 200 SMA including Infosys Ltd. (1,391.00, -0.95%) and Anupam Rasayan India Ltd. (916.55, -0.66%).

 
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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)

 
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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%).