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Trendlyne Marketwatch
Trendlyne Marketwatch
26 Sep 2023
Market closes flat, Poonawalla Fincorp receives approval from the RBI

Trendlyne Analysis

Nifty 50 closed at 19,664.70 (-9.9, -0.1%) , BSE Sensex closed at 65,945.47 (-78.2, -0.1%) while the broader Nifty 500 closed at 17,276.75 (4.2, 0.0%), of the 1,933 stocks traded today, 912 were on the uptrend, and 982 went down.

Indian indices closed flat with the benchmark Nifty 50 index closing at 19,664.7 points. The Indian volatility index, Nifty VIX, rose 2.7% and closed at 11.2 points. GR Infraprojects fell 3.6% after National Highways Logistics Management (NHLML) annulled the bidding process for two projects worth Rs 3,613 crore won by the company.

Nifty Smallcap 100 outperformed the benchmark index and closed in the green, while the Nifty Midcap 100 closed marginally lower. Nifty Metal and Nifty Realty settled higher than their Monday close. According to Trendlyne's sector dashboard, Telecom Services was the top-performing sector of the day as it rose 0.9%.

Major European indices traded in the red, except for England’s FTSE 100 index trading marginally higher. Major Asian indices closed flat or lower. US index futures traded in the red, indicating a negative start to the trading session. Brent crude oil futures extended losses from Monday and traded lower.

  • Dabur India sees a short buildup in its September 28 future series as its open interest rises 21% with a put-call ratio of 0.4.

  • Healthcare equipment & supplies, oil & gas and pharmaceuticals & biotechnology sectors fall by more than 2.5% over the past week.

  • Rail Vikas Nigam is falling despite bagging an order worth Rs 311.2 crore from Central Railway. The project involves the construction of tunnels, bridges and a side-drain retaining wall. The stock shows up in a screener for companies with book value per share improving over the past two years.

  • P. Radhakrishnan, Whole-time Director & CEO of Kesoram Industries, says the company maintains its FY24 volume target of eight metric tonnes, with an EBITDA of about Rs 650 per tonne. He further highlights that the firm may consider hiking prices by Rs 30-40 per cement bag in South India and Rs 50 per bag in the west in early October of this year.

  • Updater Services' Rs 640 crore IPO gets bids for 0.2X of the available 1.2 crore shares on offer on the second day of bidding. The retail investor quota gets bids for 0.7X of the available 22.3 lakh shares on offer.

  • JSW Infrastructure's Rs 2,800 crore IPO gets bids for 2.1X the available 13.6 crore shares on offer on the second day of bidding. The retail investor quota gets bids for 4.5X the available 2.5 crore shares on offer.

  • Manoj Vaibhav Gems N Jewellers' Rs 270 crore IPO gets bids for 2.3X the available 91.2 lakh shares on offer on the third day of bidding. The retail investor quota gets bids for 1.7X the available 45.8 lakh shares on offer.

  • Sun Pharma Advanced Research rises as it incorporates a bio-pharmaceutical arm SPARCLIFE Inc. in Delaware, US, for $50,000. The company will engage a team of professionals to coordinate, review and monitor the global clinical trials through various CROs in the US.

  • Goldman Sachs maintains its ‘Buy’ rating on Larsen & Toubro with an upgraded target price of Rs 2,830. The brokerage expects the company to deliver robust YoY growth in its order inflow, and a double-digit growth in net income in Q2FY24.

  • Suven Pharmaceuticals rises following approval from the Department of Pharmaceuticals, Ministry of Chemicals & Fertilizers, for its acquisition by Berhyanda, Cyprus. Berhyanda is set to acquire a 50.1% shareholding from the company's promoter. The company appears in a screener of stocks nearing their 52-week highs with significant volumes.

  • IT stocks like Mphasis, Coforge, Tech Mahindra, Persistent Systemsand Infosysare falling in trade. All the constituents on the broader sector index, Nifty IT, are also trading in the red.

  • Axis Direct keeps its ‘Buy’ rating on Steel Strips Wheels and raises the target price to Rs 325 from Rs 240, implying an upside of 15.7%. The brokerage believes growth will be driven by rising export demand, an increasing share of alloy wheels and an improving balance sheet. It expects the company’s net profit to grow at a 17% CAGR over FY23-26.

  • Poonawalla Fincorp is rising as it receives approval from the Reserve Bank of India (RBI) to issue co-branded credit cards with IndusInd Bank. This partnership will aid the NBFC to venture into the retail credit segment.

  • HSBC maintains its 'Buy' rating on Maruti Suzuki India with an upgraded target price of Rs 12,000. The brokerage says that the company's market share has peaked in the short run, but believes that the introduction of more hybrid models could further increase it in the medium term. HSBC also anticipates that the company may not achieve its annualised growth target of 10% within seven years.

  • Vishnu Prakash R Punglia rises as its Q1FY24 net profit increases by 52.5% YoY to Rs 16.4 crore due to a fall in inventory cost. Revenue also rises by 49.6% YoY. The company appears in a screener of stocks with annual net profits improving for the past two years.

  • GR Infraprojects is falling as National Highways Logistics Management (NHLML) annuls the bidding process for two projects worth Rs 3,613 crore won by the company. The projects are for the development, operation and maintenance of ropeways in Uttarakhand.

  • Welspun Corp is rising as its subsidiary, Sintex BAPL, signs a memorandum of understanding (MoU) with the government of Telangana to set up a manufacturing unit in the state. The expected capex of the project is Rs 350 crore, with an initial investment of Rs 50 crore for land and infrastructure in FY24. The manufacturing facility will be used to produce a mix of PVC pipes and fittings.

  • Eicher Motors is rising as Jefferies maintains its 'Buy' rating but raises the target price to Rs 4,150. According to the brokerage, the company has been impacted by growing competition concerns in 2023, but believes that it is a favourable time to 'Buy' as competitive concerns are easing. It expects the company's EBITDA to increase by 62% over FY23-26.

  • Century Textiles rises as it enters into a joint venture with M S Ramaiah Realty to develop a 52-acre land parcel in North Bangalore under phase-1 of Birla Trimaya. The project is expected to have a revenue potential of Rs 3,000 crore. The company appears in a screener of stocks nearing their 52-week highs with significant volumes.

  • Wipro sells its 20-year-old building (non-strategic immoveable property) at Chennai’s IT corridor of Sholinganallur to Casagrand Bizpark in a deal worth Rs 266.4 crore.

  • Metal stocks like JSW Steel, Tata Steel, Hindalco Industries, Jindal Steel & Power, NMDC and National Aluminium Co are rising in trade. All constituents of the broader sectoral index, BSE Metal, are trading in the green.

  • Voltamp Transformers declines more than 3% as 13 lakh shares (12.9% equity), amounting to Rs 603.5 crore, change hands in a large trade, according to reports.

  • D B Realty is set to acquire stakes in three hotels, Bamboo Hotel Global Centre, Goan Hotels & Realty and BD & P Hotels for Rs 2,300 crore. These deals are related party transactions and are done at an arm’s length basis. The company believes these acquisitions will enable it to enter into the hospitality sector.

  • Sheela Foam rises as its board approves raising Rs 1,200 crore by qualified institutional placements. The company will allot 1.1 crore shares at an average price of Rs 1,078 per share. It appears in a screener of stocks with low debt.

  • Ashish Kacholia sells a 0.6% stake in Delta Corp for approx Rs 21.7 crore in a bulk deal on Monday

Riding High:

Largecap and midcap gainers today include Vodafone Idea Ltd. (12.10, 7.08%), Varun Beverages Ltd. (967.55, 4.49%) and JSW Energy Ltd. (439.90, 4.45%).

Downers:

Largecap and midcap losers today include Shriram Finance Ltd. (1,884.60, -3.13%), 3M India Ltd. (30,952.60, -2.34%) and Union Bank of India (99.70, -2.30%).

Volume Shockers

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

Top high volume gainers on BSE included Cochin Shipyard Ltd. (1,087.75, 10.63%), Deepak Fertilisers & Petrochemicals Corporation Ltd. (653.20, 5.76%) and Uflex Ltd. (468.70, 5.53%).

Top high volume losers on BSE were HLE Glasscoat Ltd. (507.90, -12.80%), AstraZeneca Pharma India Ltd. (4,413.95, -3.90%) and Muthoot Finance Ltd. (1,236.80, -1.94%).

KRBL Ltd. (417.85, 3.75%) was trading at 8.6 times of weekly average. Eureka Forbes Ltd. (496.15, -1.63%) and Great Eastern Shipping Company Ltd. (851.10, 3.44%) were trading with volumes 6.7 and 6.3 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

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

Stocks touching their year highs included - Coal India Ltd. (286.75, -0.45%), Colgate-Palmolive (India) Ltd. (2,067.90, 3.27%) and Great Eastern Shipping Company Ltd. (851.10, 3.44%).

Stocks making new 52 weeks lows included - Delta Corp Ltd. (140.40, -1.68%) and Gujarat Gas Ltd. (432.00, -1.21%).

8 stocks climbed above their 200 day SMA including Uflex Ltd. (468.70, 5.53%) and Bharat Dynamics Ltd. (1,034.50, 4.36%). 3 stocks slipped below their 200 SMA including Adani Enterprises Ltd. (2,457.95, -0.97%) and Avenue Supermarts Ltd. (3,633.60, -0.83%).

 
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The Baseline
26 Sep 2023
Five analyst picks this week
By Satyam Kumar

1. HDFC Bank: 

ICICI Securities maintains its ‘Buy’ rating on this private bank with a target price of Rs 2,000. This implies an upside of 30.3%. Analysts Jai Prakash Mundhra, Chintan Shah, Renish Bhuva and Vaibhav Arora remain optimistic about the bank's prospects after its analyst conference on September 18. The highlight of the conference was that the NIMs and net worth of the merged entity (HDFC Bank and HDFC) will fall due to the need for additional liquidity, to increase the liquidity coverage ratio. The analysts expect the bank’s NIM to stabilise after Q2FY24 as the merger has resulted in higher non-performing assets. 

Despite short-term performance challenges, the analysts believe the bank's key growth drivers for the medium to long term are intact. They add, “We believe HDFC Bank has given reasonable clarity on the movement of net worth and related matters. The mobilisation of retail deposits and NIM trajectory are likely to be key drivers for the stock price.” They expect the bank’s net profit to grow at a CAGR of 15.9% over FY23-25. 

2. PNC Infratech: 

ICICI Securities maintains a 'Buy' rating on this roads and highways company with a target price of Rs 460, indicating an upside of 25%. Analyst Bhupendra Tiwary is upbeat about PNC's robust execution capabilities, supported by modern equipment and an in-house team for timely project delivery.

Tiwary highlights PNC's healthy order book, now at Rs 18,900 crore after adding new projects worth Rs 4,083 crore. It suggests strong revenue visibility. He expects inflows of about Rs 10,000 crore in FY24, driven by road projects, resulting in an estimated revenue CAGR of 13.5% from FY23-25. He also foresees internal accruals funding equity requirements, supported by the company's strong cash flow generation. As of Q1FY24, PNC maintains a net debt-to-equity ratio of 0.17X.

The analyst notes that the company is in talks with potential investors to monetize its assets, including 12 projects, aiming to complete this process by FY24-end. This strategic move is expected to facilitate the company's scalability in the future.

3. GAIL (India): 

Geojit Financial Services upgrades its rating on this utilities company to 'Buy', with a target price of Rs 142. This implies an upside of 15%. Analyst Vinod T P maintains a positive outlook, citing GAIL's substantial infrastructure expansion and improving sequential performance, thanks to a brighter economic outlook.

Vinod points out that a decrease in operational costs and other expenses has helped the company swing from an operating loss of Rs 336 crore in Q1FY23 to an operating profit of Rs 1,797 crore in Q1FY24. He expects GAIL's planned capex of Rs 9,000 crore for FY24—allocated to pipelines, petrochemicals, city-gas distribution, and equity investments—to drive growth. He is also optimistic about GAIL's plans to construct 100 CNG stations and 2 lakh DNPG stations over the next two years.

The analyst believes that GAIL's earnings performance will benefit from increasingly stable prices and consistent global LNG supplies. Vinod notes that the company is well-placed to capitalise on the growing demand for energy, owing to its diverse revenue streams and ongoing infrastructure expansion.

4. Hero MotoCorp: 

Sharekhan maintains a 'Buy' rating on this 2/3-wheeler company with a target price of Rs 3,629, indicating an upside of 22%. Analysts at Sharekhan are optimistic about the company's focus on volume growth, premiumisation, expansion in the electric vehicle (EV) market, and robust festive sales.

They anticipate volume growth in the premium segment, with over 25,000 bookings for the Harley Davidson X 440 and the launch of the Karizma XMR. They believe Hero’s strategic product rollouts in FY24, targeting both the entry-level and premium segments, will elevate the average selling price and attract new customers, particularly with the launch of Hero 2.0 stores.

The analysts say Hero's electric vehicle (EV) strategy is well-defined with a two-pronged approach. The company is building its own brand, VIDA, while also investing in Ather Energy, a rising name in the domestic EV market with new electric scooter launches. Given the healthy uptick in retail sales during Onam and Ganesh Chaturthi, they expect this momentum to persist, particularly during the 42-day festive period in Q3FY24.

5. Tata Steel: 

Prabhudas Lilladher maintains a ‘Buy’ call on this steel manufacturer with a target price of Rs 144, indicating an upside of 13%. Analyst Tushar Chaudhari bases his call on the company’s recently announced proposal to set up an electric arc furnace at its Port Talbot steel-making facility for a capex of 1.3 billion pounds. The UK government will grant 40% of the project cost. Chaudhari believes this move will address market share, competitiveness and substrate import challenges. Tata has also planned further capex over the next three years, subject to relevant regulatory approvals. 

Chaudhari expects Tata Steel’s current cash losses to end, as the company will import substrate instead of producing at its old facilities. He remains optimistic, expecting a fall in energy costs and believes that the volatility of coking coal prices won’t directly affect the company. He revises FY25 EBITDA estimates upwards by 5% to Rs 41,100 crore.

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

(You can find all analyst picks here)

 
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The Baseline
25 Sep 2023
As the relationship grows strained, we look into Canada’s Indian equity investments
By Suhas Reddy

The relationship between India and Canada has taken a surprising, sour turn this month—sparked by accusations over the killing of a pro-Khalistan Canadian citizen and activist. This has upended a historically friendly relationship with strong financial ties between the two countries. Despite the tit-for-tat expulsions of diplomats, and freeze on free-trade agreements and visa services, Canada has a significant investment in India’s stock market, according to NSDL. With Rs 1.77 lakh crore parked in Indian assets, including Rs 1.5 lakh crore in equities, Canada is the seventh-largest player in India's capital markets. 

Canadian Foreign Portfolio Investors (FPIs) have major investments in Indian infrastructure funds, real estate assets, logistical parks, listed entities and unlisted start-ups. 

The two major Canadian investors in Indian equities are Canada Pension Plan Investment Board (CPPIB) and Caisse de dépôt et placement du Québec (CDPQ). At the end of FY23, CPPIB’s portfolio in India was worth over Rs 1.3 lakh crore and held stakes in about 70 listed Indian firms. By the end of 2022, CDPQ’s portfolio in India was worth around $6 billion. 

Canadian Pension Fund optimistic about India’s internet tech firms

Let’s first look into investments (stakes greater than 1%) held by Canadian pension funds in listed Indian companies. CPPIB currently holds over 1% stake each in six stocks, with its biggest investment in terms of value being in Kotak Mahindra Bank. The total holding value of its investments in these six stocks is Rs 16,002.8 crore. It also owns stakes in the US-listed securities of Infosys, Wipro and ICICI Bank. 

CDPQ’s total holding value in listed companies where its stake is greater than 1% stands at Rs 1,123 crore. Its biggest investment in terms of value is Piramal Enterprises, followed by Mahanagar Gas. 

Holding value of large Canadian FPIs decline

The holding value of Canadian FPIs in the Indian equity market in the Indian equity market reduced over the past year. While CPPIB increased its investment in Indian equity at the beginning of FY23, its holding value fell by 17% YoY and 26.7% QoQ. 

CDPQ slashed its Indian market holdings to less than half, marking a cut of 75.3% YoY and 62.7% MoM.

Holding value of Canadian FPI investments in Indian stocks falls YoY

Canadian firms prefer the banking & finance sector 

Canadian firms have preferred the Indian banking & finance sector over the past year. CPPIB’s portfolio heavily leans towards the banking sector (59.4%), followed by software & services (22.2%) and transportation (11.6%). It also has investments in the telecom sector. 

Canadian investments prefer the banking & finance sector  

CDPQ also primarily focuses on banking & finance, accounting for 66% of its Indian portfolio, with additional stakes in utilities (9.5%) and diversified consumer services (8.7%). The firm has also invested in sectors like realty, cement & construction, and pharmaceuticals & biotechnology.

Over the past few years, CPPIB has expressed plans to invest about a third of its portfolio in emerging markets by 2025, with India featuring prominently. Despite current diplomatic tensions, experts reportedly don’t expect a long-term impact on Canadian investments in India. However, any escalation could put pressure on these investors, and the could put pressure on these investors, and the companies where Canadian holdings are significant.

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

 
Trendlyne Marketwatch
Trendlyne Marketwatch
25 Sep 2023
Market closes flat, ICICI Direct maintains its ‘Buy’ rating on PNC Infratech

Trendlyne Analysis

Nifty 50closed at 19,674.55 (0.3, 0%), BSE Sensexclosed at 66,023.69 (14.5, 0.0%) while the broader Nifty 500closed at 17,272.55 (11.8, 0.1%). Market breadth is holding steady. Of the 1,955 stocks traded today, 934 were on the uptick, and 979 were down.

Indian indices pared the gains from the afternoon session and closed flat, with the Nifty 50closing at 19,675. The volatility index, Nifty VIX, rose by 2.2% and closed at 10.9 points. Karnataka Bank approves the raising of Rs 1,500 crore through preferential issue, rights issue, and qualified institutional placements.

Nifty Midcap 100 closed in the green, while Nifty Smallcap 100 closed flat, following the benchmark index. Nifty Bank and Nifty Realty closed higher than Friday’s closing levels. According to Trendlyne’s sector dashboard, coal emerged as the top-performing sector of the day, with a rise of over 1.6%.

Most European indices trade in the red. US indices futures trade lower as US lawmakers are attempting to find a resolution to an ongoing budget stand-off ahead of October 1. The federal government is set to run out of funding for its operations on this date, which would force a shutdown.

  • Money flow index (MFI) indicates that stocks like Blue Star, KSB, ITI and Gujarat Ambuja Exports are in the overbought zone.

  • Palm Shelter Estate Development, promoter of Chalet Hotels, buys a 0.2% stake in the company on Friday. It now holds 3.9% of the company.

  • ICICI Securities maintains its 'Add' rating on Balkrishna Industries with an upgraded target price of Rs 2,669 per share. This indicates a potential upside of 4.9%. The brokerage believes that the revival in tyre exports in the agriculture segment and lower inflation in the US will help the company improve its profitability. It expects the company's revenue to grow at a CAGR of 7.7% over FY22-25.

  • ICICI Direct maintains its ‘Buy’ rating on PNC Infratech with a target price of Rs 460, implying an upside of 25.5%. The brokerage is optimistic about the firm’s prospects due to its healthy execution ability, stable margin trajectory and robust order book. It’s positive about the company’s asset monetisation plan, as it would free up capital and drive scalability. It expects the firm’s net profit to grow at a CAGR of 14.3% over FY23-25.

  • The Multi Commodity Exchange of India (MCX) rises over 7% in trade and touches a new 52-week high today. Reports suggest that it is set to introduce a new technology platform, serviced by TCS, from October 1.

  • Indian Metals & Ferro Alloys rises to a new 52-week high of Rs 443.5 as its subsidiary, Utkal Coal, receives Rs 20.7 crore in compensation. The payment is part of the total compensation of Rs 416.7 crore for freehold and leasehold land pertaining to the Utkal 'C' coal mines. The company appears in a screener of stocks with low debt.

  • Updater Services' Rs 640 crore IPO gets bids for 0.1X of the available 1.2 crore shares on offer on the first day of bidding. The retail investor quota gets bids for 0.3X of the available 22.3 lakh shares on offer.

  • JSW Infrastructure's Rs 2,800 crore IPO gets bids for 0.4X the available 13.6 crore shares on offer on the first day of bidding. The retail investor quota gets bids for 1.4X the available 2.5 crore shares on offer.

  • The consumer electronics industry anticipates around 18-20% increase in sales during the festive season, which also coincides with the Cricket World Cup. The industry is expected to surpass Rs 70,000 crore sales in FY24, with festive sales contributing around 25-27%.

  • Manoj Vaibhav Gems N Jewellers' Rs 270 crore IPO gets bids for 0.6X the available 91.2 lakh shares on offer on the second day of bidding. The retail investor quota gets bids for 0.7X the available 45.8 lakh shares on offer.

  • Religare Enterprisesfalls as Burman Group and others announce an open offer to acquire a 26% stake (9 crore shares) at an average price of Rs 235 per share, amounting to Rs 2,116 crore. After the open offer, Burman Group will own a 53.9% stake in the company. It appears in a screenerof stocks with strong annual EPS growth.

  • S&P Global Ratings maintains its forecast for India's GDP growth for FY24 at 6%, noting a slowing global economy, the threat of below-normal monsoons, and the delayed effect of rate hikes.

  • Sugar companies like Shree Renuka Sugars, EID Parry, Balrampur Chinni Mills and Triveni Engineering & Industries are rising. The broader sugar industry is also trading in the green.

  • Strides Pharma Science rises to a new 52-week high of Rs 539 as its subsidiary, Strides Pharma Global, receives approval from the US FDA for Icosapent Ethyl Capsules in 0.5-gram and 1-gram dosages. The drug is used for the treatment of various cardiovascular conditions and has a market size of $1.3 billion (approx Rs 10,803 crore) in the US. The company appears in a screener of stocks with strong momentum.

  • Life Insurance Corp of India is falling as it receives a notice from the Additional Commissioner State Tax, demanding payment of goods and service tax worth Rs 290.5 crore. The company plans to file an appeal against the order before the GST Appellate Tribunal.

  • Karnataka Bank rises as its board approves the raising of Rs 1,500 crore through preferential issues, rights issues, and qualified institutional placements. The bank will issue 3.3 crore shares on a preferential basis at an average price of Rs 239.5, amounting to Rs 800 crore. It appears in a screener of stocks nearing their 52-week highs with significant volumes.

  • CLSA maintains its 'Buy' rating on Bajaj Finance but raises the target price to Rs 9,500. The brokerage believes that the company's capital-raising efforts will help drive long-term growth and indicate stronger-than-expected medium-term loan growth. It has raised the loan growth forecasts by 2-3 percentage points over the next two years.

  • ICICI Lombard General Insurance Co appoints Sanjeev Mantri as the Managing Director and Chief Executive Officer, with effect from December 1, 2023.

  • Zen Technologies surges more than 5% as it bags an order worth Rs 227.7 crore from the Ministry of Defence.

  • Mahindra & Mahindra Financial Services is rising as it completes the acquisition of the remaining 20% stake in its subsidiary, Mahindra Insurance Brokers, for Rs 206 crore.

  • The Asian Development Bank (ADB) lowers its FY24 GDP forecast for India by 10 bps to 6.4%, citing a slowdown in exports and possible agricultural disruptions due to erratic rainfall patterns.

  • Updater Services raises Rs 288 crore from anchor investors ahead of its IPO by allotting 96 lakh shares at Rs 300 each. Investors include Societe Generale, Citigroup Global, Nomura Singapore, Franklin India, Motilal Oswal and ICICI Prudential Mutual Fund.

  • JSW Infrastructure raises Rs 1,260 crore from anchor investors ahead of its IPO by allotting around 10.6 crore shares at Rs 119 each. Investors include Morgan Stanley, Government of Singapore, Monetary Authority of Singapore, Goldman Sachs, SBI Mutual Fund, Aditya Birla Sun Life Trustee and Nippon Life India.

  • Ircon International falls despite bagging an order worth $14.9 million (approx Rs 122 crore) from Sri Lanka Railways. The project involves the design, installation, testing, commissioning, and certification of signalling and telecommunication systems from Maho Junction to Anuradhapura. The company appears in a screenerof stocks with improving net cash flow.

  • Delta Corp plunges almost 10% to touch its 52-week low of Rs 157.9 per share as the Directorate General of GST Intelligence directs the company to pay a tax liability of Rs 11,139.6 crore.

Riding High:

Largecap and midcap gainers today include Bajaj Finance Ltd. (7,819.85, 4.66%), Trent Ltd. (2,157.05, 4.41%) and Dalmia Bharat Ltd. (2,337.55, 4.09%).

Downers:

Largecap and midcap losers today include Berger Paints (India) Ltd. (611.40, -8.65%), Bank of India (106.55, -2.43%) and APL Apollo Tubes Ltd. (1,542.70, -2.25%).

Movers and Shakers

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

Top high volume gainers on BSE included Indiabulls Real Estate Ltd. (85.65, 9.32%), IRB Infrastructure Developers Ltd. (32.10, 7.72%) and Multi Commodity Exchange of India Ltd. (1,902.30, 6.66%).

Top high volume losers on BSE were Delta Corp Ltd. (142.80, -18.59%), Network18 Media & Investments Ltd. (65.95, -3.09%) and Swan Energy Ltd. (291.45, -2.38%).

Sapphire Foods India Ltd. (1,465.95, -1.21%) was trading at 8.7 times of weekly average. Maharashtra Scooters Ltd. (7,984.80, 5.85%) and Westlife Foodworld Ltd. (982.15, 2.78%) were trading with volumes 7.5 and 5.9 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

16 stocks took off, crossing 52 week highs, while 2 stocks were underachievers and hit their 52 week lows.

Stocks touching their year highs included - Balkrishna Industries Ltd. (2,562.35, 0.59%), Blue Star Ltd. (911.70, 1.95%) and Coal India Ltd. (288.05, 1.66%).

Stocks making new 52 weeks lows included - Delta Corp Ltd. (142.80, -18.59%) and Gujarat Gas Ltd. (437.30, -0.52%).

5 stocks climbed above their 200 day SMA including Aavas Financiers Ltd. (1,707.00, 3.24%) and Heidelberg Cement India Ltd. (179.00, 1.02%). 8 stocks slipped below their 200 SMA including Radico Khaitan Ltd. (1,158.35, -2.03%) and Bharat Dynamics Ltd. (991.25, -1.30%).

 
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The Baseline
22 Sep 2023
Five Interesting Stocks Today

1.Blue Star:

This air conditioner manufacturer rose by 13.6% over the past week till Friday, as it floated its Qualified Institutional Placement (QIP) to raise up to Rs 1,000 crore. It has set the floor price for the QIP at Rs 784.55 per share, nearly a 2% discount from Monday’s closing price of Rs 800. The management plans to use the capital to fund its capex plans of capacity expansion and also reduce its debt. The company has planned a capex of Rs 750 crore over the next three years, with the major portion of it being executed in FY24 and FY25. It shows up in a screener for stocks in the PE Buy zone with a high Durability score and rising Momentum score. 

With air-conditioner penetration at less than 10% in India, B. Thiagarajan, MD of Blue Star said, “The long-term prospects for the business will continue to be good and we project that for the industry and Blue Star the growth will be at least 10% and 15% respectively in FY24.”

According to ICICI Securities, intense summer conditions and rising affordability will drive robust demand in the industry in the coming years. It also expects the company to gain market share in the coming quarters given its dominant market presence and focus on distribution expansion. According to Trendlyne’s Forecaster, the consensus recommendation from 20 analysts on the stock is a ‘Buy’. 

Although the firm’s largest segment, unitary products (room air conditioners), saw muted revenue growth in Q1FY24 due to unseasonal rains in North India, it still managed to gain market share in the segment. Nikhil Sohoni, CFO of Blue Star noted, “While the summer season impacted room air conditioner sales, we hope that demand will revive in the festive season”. He added, “We are optimistic about the prospects for the rest of the year.”

2. UPL:

This agrochemicals firm is seeing an uptick in demand for its products in North and South America. These regions contributed 20.5% to the company’s overall revenue. In a recent report Citi anticipates that the profitability of United States farmers in CY23 will surpass historical levels. The US Agriculture Department forecasts an increase in soybean production in Latin America during the current fiscal year. Citi adds that prices of generic chemicals are close to bottoming out, and a recovery appears to be on the cards from the first half of 2024. According to Trendlyne Technicals, the stock increased by 5% in the past month.

The company’s Q1FY24 net profit fell by 81.1% YoY to Rs 166 crore and its revenue dropped by 17.2% YoY. The weak set of numbers has driven the stock down by 10.4%  in the past three months. However, management indicated that new products such as Evolution and Feroce are outperforming in the market. The revenue from these differentiated products has risen from 24% to 35% of total revenues in Q1FY24. Looking ahead, the management expects a subdued demand from the domestic market in the near term, especially in Q2FY24, but anticipates a recovery starting in H2FY24.

KR Choksey says that the company's medium-term goal is to reduce net debt, aiming to achieve a Net Debt/EBITDA ratio below one while maintaining an 'investment grade' credit rating. They anticipate that UPL's emphasis on high-growth products like differentiated offerings, specialty chemicals, and seeds will boost market share and drive future revenue growth. 

3. SJVN: 

This electric utilities company has been volatile over the past few trading days. Following an 8.4% rise in share price in two consecutive sessions, SJVN plunged over 13% intra-day on Thursday after Centre’s Power Ministry (representing the President of India, promoter of the company) launched an offer for sale (OFS) to offload up to 4.9% equity stake in the company.  

This comes right after the company’s share price surged 6.6% on Wednesday and touched a new 52-week high, after it signed a MoU with Power Finance Corp for financial assistance of projects worth Rs 1.2 lakh crore. The projects include renewable energy and thermal generation projects to be set up at a total cost of approximately Rs 1.2 lakh crore. 

Despite the sharp fall on Thursday, the company’s share price has risen 30.3% in the past month, following multiple order wins. Earlier this month, the company, through its arm SJVN Green Energy, signed a power purchase agreement with Bhakra Beas Management Board (BBMB) for an 18 MW solar power project. The project is expected to be commissioned by August 2024.

In August, it received an order from Assam Power Development Corp for three solar power projects with a cumulative capacity 320 MW. It features in a screener of stocks that are up by more than 20% over the past month.

JM Financial has a ‘Buy’ rating on SJVN as the brokerage has a positive outlook on India’s hydroelectric power sector. According to Trendlyne’s Forecaster, its revenue is expected to increase by 9% in FY24.  

4. Power Grid Corp of India: 

We have one more electric utilities stock this week. Power Grid rose 2.1% over the past week, outperforming the Nifty 50 index, which fell  2.1% over the same period. It appears in a screener of stocks near their 52-week highs with significant volume. 

This rise comes after Union Power Minister, RK Singh said that India plans to add 25-30 GW of thermal power capacity. This is in addition to the 50 GW expansion which is already under construction. The increase in thermal power capacity is on the back of ever increasing power demand, which reached a record high of 241 GW towards the end of August. 

The company also emerged as the preferred bidder under tariff based competitive bidding (TBCB) to establish an inter-state transmission system project in Rajasthan on September 11. The project is to establish a new 765/400 kV substation along with a static synchronous compensator (STATCOM) at Ramgarh and a 765kV D/C transmission line.

Sharekhan maintained its ‘Buy’ rating on the stock with a target price of Rs 290 per share. The brokerage believes that the company’s orders in hand worth Rs 48,700 crore and a strong order pipeline in the transmission segment will aid in profitability growth. It expects the company’s net profit to grow at a CAGR of 8.6% over FY22-25. It also has a ‘Buy’ consensus from 13 out of 19 analysts tracking the stock.

5. Hindalco Industries: 

This aluminium manufacturer fell 5.9% since its 52-week high of Rs 508.9 on September 14, 2023. It hit a 52-week high after the company inked a partnership agreement with Italy-based Metra SpA to enhance aluminium extrusion and fabrication technology to manufacture Vande Bharat rail coaches. It plans to invest Rs 2,000 crore for the project. Novelis, a subsidiary, signed a contract with Ball Corp to supply aluminium beverage can sheets to Ball’s can-making plants. 

In Q1FY24, Hindalco beat Trendlyne Forecaster’s estimate for net profit by 24.5% despite its profit falling 40.4% YoY to Rs 2,454 crore. Its revenue also fell by 8.3% YoY but beat the estimate by 6.7%. Sales were affected in Q1 due to the destocking of cookware, but the management is optimistic that sales volumes will recover and exceed expectations in Q2 as destocking is almost over, and due to high demand. 

Hindalco’s Silvassa extrusion facility started operations in Q1 and the company is increasing its capacity. Its Aditya Aluminium's cold-rolling facility is also expected to begin by FY25. This will lead to a 50% increase in downstream aluminium capacity by FY25. The aluminium manufacturer has guided a capex of Rs 4,000-4,500 crore for Indian operations for FY24. It has also guided capex for the arm Novelis of $1.6-1.9 billion focusing on increasing greenfield rolling capacity, removing bottlenecks and setting up recycling units.

Geojit BNP Paribas has upgraded Hindalco to a ‘Buy’ on the back of strong domestic demand, volume growth, successful completion of destocking, improved margins, and ambitious expansion projects in the downstream business. The analysts also expect the cost of aluminium and coal prices to decline further in Q2. The company appears in a screener for stocks with brokers upgrading recommendations or target prices in 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.

 
Trendlyne Marketwatch
Trendlyne Marketwatch
22 Sep 2023
Markets closes lower, Lupin acquires five brands from Menarini

Trendlyne Analysis

Nifty 50 closed at 19,674.25 (-68.1, -0.3%) , BSE Sensex closed at 66,009.15 (-221.1, -0.3%) while the broader Nifty 500 closed at 17,260.80 (-42.7, -0.3%), of the 1,898 stocks traded today, 871 were gainers and 986 were losers.

Indian indices pared their gains and settled in the red, with the Nifty 50 falling over 0.3% and closing at 19,674.3 points. The Indian volatility index, Nifty VIX, fell 1.5% and closed at 10.7 points. NCC and J Kumar Infraprojects bagged an order worth Rs 6,301.1 crore through their joint venture. NCC’s share in the JV is 51% which amounts to Rs 3,213.6 crore and J Kumar Infraprojects’ share is 49%, amounting to Rs 3,087.5 crore.

Nifty Smallcap 100 outperformed the benchmark index and closed in the green, while the Nifty Midcap 100 closed marginally flat. Nifty Auto and Nifty PSU Bank closed higher than their Thursday close. According to Trendlyne's sector dashboard, Telecommunications Equipment was the top-performing sector of the day as it rose 3.5%.

Major Asian indices closed in the green, except for India’s BSE Sensex and Japan’s Nikkei 225 closing in the red. US index futures traded up, indicating a positive start to the trading session. Brent crude oil futures traded lower after closing flat on a volatile day on Thursday.

  • Relative strength index (RSI) indicates that stocks like Cholamandalam Financial Holdings, Sundaram Finance, KSB and Sunteck Realty are in the overbought zone.

  • JSW Steel rises as its subsidiary Periama Holding enters into an agreement to sell plant, property, equipment and mineral rights of Caretta Minerals for $24 million (approx. Rs 199 crore). The purchasing entity is West Virginia Properties. The company appears in a screener of stocks nearing 52-week high with significant volumes.

  • Dhampur Sugar Mills Chief Executive Officer, Anant Pande, resigns on Thursday due to personal reasons.

  • Foreign institutional investors sell stocks worth Rs 3,520.7 crore in the equity market over the past week, according to Trendlyne's FII dashboard. Meanwhile, index options witness the highest outflow of Rs 1.1 lakh crore from foreign investors.

  • Jairam Sampath, Whole Time Director and CFO at Kaynes Technology India, expects greater traction in Q3 and Q4 of FY24, with robust momentum expected in FY25. He mentions smart meters as a good prospect for the firm and a developing area. As of July 1, 2023, the company's order book was well over Rs 3,000 crore.

  • Manoj Vaibhav Gems N Jewellers' Rs 270 crore IPO gets bids for 0.1X the available 91.2 lakh shares on offer on the first day of bidding. The retail investor quota gets bids for 0.3X the available 45.8 lakh shares on offer.

  • Signatureglobal (India)'s Rs 730 crore IPO gets bids for 11.9X the available 1.1 crore shares on offer on the third day of bidding. The retail investor quota gets bids for 6.8X the available 19.9 lakh shares on offer.

  • Sai Silks (Kalamandir)'s Rs 1,201 crore IPO gets bids for 4.4X the available 3.9 crore shares on offer on the third day of bidding. The retail investor quota gets bids for 0.9X the available 2 crore shares on offer.

  • NCC and J Kumar Infraprojects are rising as they bag an order worth Rs 6,301.1 crore through their joint venture. NCC’s share in the JV is 51% which amounts to Rs 3,213.6 crore and J Kumar Infraprojects’ share is 49%, amounting to Rs 3,087.5 crore. The project involves the construction and operation of tunnels in Mumbai.

  • Lupin is falling despite acquiring five brands in the gastroenterology, urology and anti-infectives segments from Menarini for a cash consideration of Rs 101 crore. The companies had previously signed an agreement to market these brands in India in July 2021.

  • Zaggle Prepaid Ocean Services’ shares make a flat debut on the bourses, at Rs 164. The Rs 563.4 crore IPO has received bids for 12.6 times the total shares on offer.

  • Samhi Hotels’ shares debut on the bourses at a 6% premium to the issue price of Rs 126. The Rs 1,370.1 crore IPO has received bids for 5.3 times the total shares on offer.

  • Tech Mahindra hits a new 52-week high as it approves the merger of Tech Mahindra Credit Solutions with Tech Mahindra (Americas), a wholly-owned subsidiary of the company. It appears in a screener for stocks with strong momentum.

  • Motilal Oswal maintains its ‘Buy’ rating on Hindalco Industries and raises the target price to Rs 550 from Rs 510, implying an upside of 15.6%. The brokerage remains positive about the firm’s prospects due to its expanding capacity, strong capacity and shift towards high-value-added downstream products.

  • Suzlon Energy bags an order to develop 29.4 MW of wind capacity for the 100 MW wind-solar hybrid energy project of BrightNight located in Maharashtra. The company will supply 14 wind turbines with a capacity of 2.1 MW each.

  • Prabhudas Lilladher initiates coverage on the recently listed R R Kabel with a ‘Buy’ rating and a target price of Rs 1,407. The brokerage is optimistic about the company's position in the Wires & Cables (W&C) sector. They highlight RR Kabel's strong brand, diverse product range, well-planned capacity expansion, growing dealer and distribution network, and distribution-focused export business as factors contributing to their positive outlook.

  • PSU bank stocks like Union Bank of India, Central Bank of India, Canara Bank and Bank of Baroda are rising in trade. The broader sectoral index Nifty PSU Bank is also trading in the green.

  • UltraTech Cement enters into an agreement with India Cements for purchasing a total of 73.8 acres of land in Andhra Pradesh in a deal worth Rs 70 crore. It appears in a screenerfor stocks with high momentum scores.

  • Manoj Vaibhav Gems N Jewellers raises Rs 81.1 crore from anchor investors ahead of its IPO by allotting 37.7 lakh shares at Rs 215 each. Investors include Quantum-State Investment Fund, Nexus Global Opportunities Fund, AG Dynamics Funds, Coeus Global Opportunities Fund and Chhatisgarh Investments.

  • The Finance Ministry’s August Economic Review states that food prices are moderating. It highlights that the risks of stock market correction and geopolitical developments may impact investor sentiment. It has given a baseline estimate for India’s FY24 GDP at 6.5%.

  • IRB Infrastructure Developers is rising as it achieves financial closure of Rs 2,092 crore to upgrade NH-27 to six lanes with paved shoulders. This includes financing of Rs 1,446 crore through lenders.

  • Sunteck Realty falls despite creating a joint platform with International Finance Corp with a total investment of Rs 750 crore. The platform will promote the development of nearly 12,000 housing units across four to six green housing projects within the Mumbai Metropolitan Region (MMR). The company appears in a screener of stocks with growing profit and margins.

  • ideaForge Technology is rising as it bags an order worth Rs 58 crore to supply 400 Surveillance Copters with accessories. The stock shows up in a screener for companies with low debt.

  • JP Morgan is set to include India in its GBI-EM (Government Bond Index-Emerging Markets) index, effective from June 28, 2024. It has stated that 23 Indian Government Bonds are eligible and that India will have a maximum weight of 10% on the index.

  • Rail Vikas Nigam rises as it receives an order worth Rs 1,272 crore in a joint venture with Tracks & Towers Infratech. The scope of the order involves construction of a 6-lane greenfield Varanasi Ranchi-Kolkata highway. The company appears in a screener of stocks with strong momentum.

  • ICICI Lombard General Insurance falls as Managing Director and Cheif Executive Officer, Bhargav Dasgupta, resigns on Thursday to pursue a career opportunity outside the country. His last working date shall be intimated in due course of time.

  • Rakesh Jhunjhunwala's portfolio buys a 4.4% stake in D B Realty on September 15, 2023. It now holds 5.6% in the company.

  • Glenmark Pharmaceuticals agrees to sell a 75% stake in its subsidiary, Glenmark Life Sciences (GLS), to Nirma for Rs 5,652 crore. Post the stake sale, the company will own a 7.8% stake in GLS. Glenn Saldanha, Chairman and MD of Glenmark Pharmaceuticals said “This deal aligns with Glenmark’s strategic intent of moving up the value chain to become an innovative/brand-led organization, with continuous focus on our core therapeutic areas of dermatology, respiratory and oncology.”

Riding High:

Largecap and midcap gainers today include JSW Energy Ltd. (422.10, 7.19%), Berger Paints (India) Ltd. (669.30, 6.63%) and Union Bank of India (101.85, 5.65%).

Downers:

Largecap and midcap losers today include Zydus Lifesciences Ltd. (595.60, -3.26%), Info Edge (India) Ltd. (4,300.35, -3.14%) and Macrotech Developers Ltd. (740.60, -2.94%).

Crowd Puller Stocks

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

Top high volume gainers on BSE included Housing and Urban Development Corporation Ltd. (85.80, 18.84%), Century Textiles & Industries Ltd. (1,086.00, 6.80%) and Berger Paints (India) Ltd. (669.30, 6.63%).

Top high volume losers on BSE were Glenmark Pharmaceuticals Ltd. (802.80, -3.01%) and Cholamandalam Financial Holdings Ltd. (1,194.30, -0.76%).

Carborundum Universal Ltd. (1191.25, 2.68%) was trading at 14.8 times of weekly average. Gujarat Ambuja Exports Ltd. (314.95, 6.12%) and La Opala RG Ltd. (423.15, 0.81%) were trading with volumes 6.8 and 4.2 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

12 stocks overperformed with 52 week highs, while 2 stocks were underachievers and hit their 52 week lows.

Stocks touching their year highs included - Berger Paints (India) Ltd. (669.30, 6.63%), Canara Bank (382.95, 5.08%) and Indian Bank (420.85, 3.94%).

Stocks making new 52 weeks lows included - Gujarat Gas Ltd. (439.60, -0.33%) and Vedanta Ltd. (225.05, -0.64%).

4 stocks climbed above their 200 day SMA including Berger Paints (India) Ltd. (669.30, 6.63%) and Deepak Fertilisers & Petrochemicals Corporation Ltd. (624.25, 1.98%). 8 stocks slipped below their 200 SMA including Bharat Dynamics Ltd. (1,004.35, -2.13%) and Sheela Foam Ltd. (1,106.15, -1.95%).

 
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The Baseline
21 Sep 2023
By Akshat Singh

Finding stocks that can beat the index is a mix of analysis, strategy and betting on the right sectors. Investors are constantly looking out for indicators that can point to stocks with high potential upside. 

One useful indicator is stocks that have gained value over the past month but are still trading well below (>30%) their 52-week highs. 

Ahead of September quarter results, we look for stocks showing positive changes over the past month but are still far from their 52-week highs (>30% distance). This screener includes a total of 15 such Nifty 500 stocks. 

Chemical & petrochemical stocks rise on new products and PLI schemes

Of the 15 stocks in the screener, five are from the chemical & petrochemical sector. In a welcome development for the raw material-sensitive sector, the Finance Minister, Nirmala Sitharaman on July 23 announced that the Centre is considering a Production Linked Incentive (PLI) scheme to promote Industry 4.0, aimed to reduce carbon intensity across the industry. 

In chemicals,  Deepak Fertilisers & Petrochemicals has risen by 12.6% in the past month. It is currently 42.4% away from its 52-week high. This chemical manufacturer signed two purchase agreements with GAIL, causing its stock to rise by 3.3% on September 4. Hopes for new urea orders also helped, especially after China halted its exports on September 7. 

The second stock from the sector, Epigral’s share price rose by 11.3% in the past month and is currently 41.8% below its 52-week high. This boost came after it recently announced a venture into the production of chlorinated polyvinyl chloride (CPVC) compounds, with an additional capex of Rs 25 crore. 

Aarti Industries also rose by 12% over the past month. It is currently 43.1% away from its 52-week high. According to Sharekhan, the company’s Nitrotoluene volumes increased by 77.6% YoY, opening up an untapped market in India. The company is planning to invest Rs 3,000 crore in this product line in FY24 and FY25. 

Packaging majors rise with growing market demand

Two key players in the containers & packaging sector, Uflex and Polyplex Corp, rose by 16.4% and 3.7%, respectively in the past month, and are currently 44% and 46.9% below their 52-week highs. 

Uflex’s CMD, Ashok Chaturvedi, highlighted increased demand in India as a driving force. He noted that the company's recently inaugurated plastic and polyester film manufacturing lines in Dharwad, Karnataka, are in operation. This expansion has resulted in an impressive 22% YoY increase in sales volume for the quarter, which can be attributed to the month change.

Software & services stocks grow on strong order books and new regions 

Moving on to the software & services sector, which has three standout stocks: FSN E-Commerce Ventures surged by 7.5% in the past month and is currently 39.8% below its 52-week high. The company’s revenue improved by 24% YoY in Q1FY24. According to ICICI Securities, the firm’s order conversion rate, a sign of quality traffic, continues to improve. 

The personal care business reported an average order value (AOV) of Rs 1,849, up 4% YoY, while the fashion business saw a robust AOV of Rs 4,058, a 9% YoY increase.

Another stock in this sector, Quess Corp rose by 5.6% in the past month and currently trades 35.6% below its 52-week high.  

Easy Trip Planners rose by 15.3% in the past month and is currently trading 41.4% below its 52-week high. The company acquired a 51% stake in three companies, Guideline Travels Holidays India, Dook Travels, and Tripshope Travel Technologies, which led the stock price to surge by 2% on August 1. The management also indicated that their Dubai operations saw strong growth, with revenue reaching Rs 53 crore in Q1FY24, a 22% QoQ increase.

In summary, this screener throws light on diverse sectoral trends. The chemical & petrochemical sector stands to gain from new products and a potential PLI scheme. Commercial services are responding to market demand, while software & services firms are expanding their order books. Investors will have to wait for Q2FY24 results for further insights into corporate performance. 

 
Trendlyne Marketwatch
Trendlyne Marketwatch
21 Sep 2023
Market closes lower, Axis Direct keeps its ‘Buy’ rating on PNC Infratech

Trendlyne Analysis

Nifty 50closed at 19,742.35 (-159.1, -0.8%), BSE Sensexclosed at 66,230.24 (-570.6, -0.9%) while the broader Nifty 500closed at 17,303.50 (-145.9, -0.8%). Market breadth is highly negative. Of the 1,914 stocks traded today, 562 were on the uptick, and 1,309 were down.

Indian indices extended their losses from afternoon session and closed in the red, with the Nifty 50closing at 19,742. The volatility index, Nifty VIX, dropped by 2.8% and closed at 10.8 points. Ipca Laboratories has acquired an additional 19.3% stake in Unichem Laboratories.

Nifty Midcap 100 and Nifty Smallcap 100 closed lower, following the benchmark index. Nifty Media and Nifty IT closed flat. All other major sectoral indices closed lower. According to Trendlyne’s sector dashboard, media emerged as the top-performing sector of the day, with a rise of over 0.6%.

Most European indices trade in the red except for the Swiss Market Index trading higher. US indices futures trade lower, indicating a negative start. US 10-year benchmark bond yields rose to a 15-year high of 4.4% post the Fed’s hawkish commentary on Wednesday.

  • Glenmark Pharmaceuticals sees a short buildup in its September 28 future series as its open interest rises 7.7% with a put-call ratio of 0.5.

  • Ipca Laboratories falls despite acquiring an additional 19.3% stake (1.4 crore shares) in Unichem Laboratories. The deal has been executed at an average price of Rs 440 per share, amounting to Rs 598 crore. The company appears in a screener of stocks with no debt.

  • Biocon falls despite its subsidiary, Biocon Biologics, receiving European Commission approval for the marketing of YESAFILI. The drug is used for the treatment of neovascular degeneration and has an annual sales of $ 1.8 billion (approx. Rs 14,964 crore) in the European Union. The company appears in a screener of stocks with improving cash flow from operations.

  • Morgan Stanley maintains its 'Overweight' rating on Zomato and hikes the target price to Rs 125. The brokerage believes that the platform fees charged by the company have received positive feedback from its user base. Over the next six quarters, Morgan Stanley expects the company to achieve an adjusted EBITDA margin of around 4-5% in the food delivery sector.

  • UPL is rising following reports that Citi has maintained its ‘Buy’ rating on the company, with a target price of Rs 800, implying an upside of 30% from the current market price. The brokerage believes that the improvement in agriculture production in the US and Latin America bodes well for the company as it derives a significant portion of its revenue from these two regions.

  • Mahindra & Mahindra is falling as its associate company, Resson Aerospace Corp, files for voluntary dissolution. Mahindra & Mahindra will receive approx 4.7 million canadian dollars upon liquidation.

  • A global sugar deficit is anticipated for the 2023-24 season starting in October. However, most trade organisations, industry groups, and the Indian government believe that domestic supplies will exceed demand. This outlook is expected to hold true even after accounting for ethanol diversion next year.

  • ICICI Securities upgrades its rating on Tech Mahindra to ‘Buy’ from ‘Sell’ and raises the target price to Rs 1,552 from Rs 910, indicating an upside of 19.9%. The brokerage believes that the company’s margins will improve in the coming quarters due to reduced subcontractor costs, divestment of non-strategic business, and an increase in offshore business. It is optimistic about the firm’s new CEO’s ability to drive growth.

  • Sai Silks (Kalamandir)'s Rs 1,201 crore IPO gets bids for 0.3X the available 3.9 crore shares on offer on the second day of bidding. The retail investor quota gets bids for 0.3X the available 2 crore shares on offer.

  • Signatureglobal (India)'s Rs 730 crore IPO gets bids for 1.6X the available 1.1 crore shares on offer on the second day of bidding. The retail investor quota gets bids for 2.5X the available 19.9 lakh shares on offer.

  • Jefferies predicts that Indian banks are likely to witness pressure on their NIMs (net interest margins) amid rising interest rates over the coming 2-3 quarters. The brokerage expects IndusInd Bank’s margins to remain near the current levels. It also notes that Axis Bank may see a compression of 10-15 bps, while ICICI Bank and SBI may see a compression of 30-40 bps.

  • KSB surges more than 5% in trade to touch its all-time highof Rs 3,084 per share. It ranks high on Trendlyne's checklist with a score of 69.6%. However, the company is in the 'Sell' zone and appears in a screenerof stocks with improving return on equity (RoE) over the past two years.

  • BLS International Services is falling as the Indian government cancels visa services for Canadian nationals for an indefinite period of time, according to the company's website.

  • DCB Bank is rising as the Reserve Bank of India (RBI) approves HDFC Asset Management Company to acquire an aggregate 9.5% stake in the bank. The RBI has also given HDFC AMC a period of one year from the date of approval to complete the acquisition. The Centre has also granted HDFC AMC permission to acquire a 9.5% stake in Federal Bank.

  • Axis Direct keeps its ‘Buy’ rating on PNC Infratech with a target price of Rs 435, implying an upside of 18.5%. The brokerage remains positive about the company’s prospects due to its robust order book, better execution credentials, healthy balance sheet and focus on diversification. It expects the company’s standalone revenue to grow at a CAGR of 12.3% over FY23-25.

  • Shashank Srivastava, Executive Vice-President at Maruti Suzuki, expects strong monthly sales for the company in September. He believes that Maruti Suzuki is on track to accomplish its target of capturing a 25% market share in the SUV  segment by the end of FY24. He also notes that the PV market will grow by 5-7% in FY24.

  • Equitas Small Finance Bank rises as HDFC Asset Management Company gets RBI approval to acquire a 9.5% stake in the bank's paid-up equity capital or voting rights. It appears on a screener for stocks with high Piotroski Scores.

  • Auto stocks like Apollo Tyres, Mahindra & Mahindra, Tata Motors, Hero MotoCorp and Samvardhana Motherson International are falling in trade. Barring Cummins India, all other constituents of the broader sectoral index, BSE Auto, are also trading in the red.

  • Vijay Kedia converts a 5.3% stake in Atul Auto to equity from warrants on Wednesday. Following the transaction, his equity holding in the company stands at 18.2%.

  • EMS’ shares debut on the bourses at a 33.7% premium to the issue price of Rs 211. The Rs 321.3 crore IPO has received bids for 75.3 times the total shares on offer.

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

  • India’s domestic crude oil production rises by 2.1% YoY to 2.5 MMT (million metric tonnes) in August, according to data from the Oil Ministry. Meanwhile, crude oil imports have increased by 6.2% YoY.

  • Cipla is falling as the US FDA issues a Form 483 with five observations after conducting an inspection at the manufacturing facility of InvaGen Pharmaceuticals, a subsidiary of the company.

  • SJVN falls despite the Power Ministry selling up to a 2.5% stake (9.7 crore shares) via an offer for sale (OFS). The floor price of the OFS is set at Rs 69 per share, amounting to Rs 669.3 crore. The company appears in a screener of stocks with improving book value per share.

  • Karur Vysya Bank is rising as the Reserve Bank of India (RBI) gives HDFC AMC approval to acquire an aggregate 9.5% stake in the bank.

Riding High:

Largecap and midcap gainers today include Adani Power Ltd. (382.45, 3.81%), Hindustan Petroleum Corporation Ltd. (263.45, 2.19%) and REC Ltd. (259.10, 1.89%).

Downers:

Largecap and midcap losers today include NHPC Ltd. (52.35, -5.68%), ICICI Prudential Life Insurance Company Ltd. (565.05, -3.94%) and Indian Railway Finance Corporation Ltd. (74.45, -3.56%).

Volume Shockers

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

Top high volume gainers on BSE included KSB Ltd. (3,122.35, 13.54%), KIOCL Ltd. (319.20, 4.26%) and Cholamandalam Financial Holdings Ltd. (1,200.00, 2.86%).

Top high volume losers on BSE were Anupam Rasayan India Ltd. (877.85, -5.07%), Ratnamani Metals & Tubes Ltd. (2,600.00, -2.21%) and Honeywell Automation India Ltd. (40,300.00, -0.81%).

Multi Commodity Exchange of India Ltd. (1,749.45, 1.74%) was trading at 5.1 times of weekly average. Nuvoco Vistas Corporation Ltd. (369.05, 1.01%) and JM Financial Ltd. (85.65, 1.42%) were trading with volumes 4.7 and 3.8 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

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

Stocks touching their year highs included - Glenmark Pharmaceuticals Ltd. (827.70, -3.37%), Indian Bank (404.90, -2.47%) and Phoenix Mills Ltd. (1,830.00, 0.03%).

Stocks making new 52 weeks lows included - Delta Corp Ltd. (175.45, -0.79%) and Vedanta Ltd. (226.50, -2.29%).

2 stocks climbed above their 200 day SMA including Pidilite Industries Ltd. (2,517.00, 0.71%) and Atul Ltd. (7,096.40, -0.74%). 12 stocks slipped below their 200 SMA including Anupam Rasayan India Ltd. (877.85, -5.07%) and Sheela Foam Ltd. (1,128.10, -3.47%).

 
Trendlyne Marketwatch
Trendlyne Marketwatch
20 Sep 2023
Market closes lower, Axis Direct upgrades its rating on Tata Steel to ‘Buy’ from ‘Hold’

Trendlyne Analysis

Nifty 50 closed at 19,901.40 (-231.9, -1.2%) , BSE Sensexclosed at 66,800.84 (-796, -1.2%) while the broader Nifty 500 closed at 17,449.35 (-164.3, -0.9%), of the 1,918 stocks traded today, 637 were in the positive territory and 1,244 were negative.

Indian indices extended their losses from the afternoon session and closed in the red, with the Nifty 50 falling 1.2% and settling at 19,901.4 points. The Indian volatility index, Nifty VIX, rose 2.7% and closed at 11.1 points. The Organisation for Economic Cooperation and Development (OECD) raised India’s GDP growth forecast for FY24 to 6.3% from its earlier estimate of 6%.

Nifty Smallcap 100 and Nifty Midcap 100 closed lower, taking cues from the benchmark index. Nifty Infra and Nifty FMCG closed lower than their Thursday close. According to Trendlyne's sector dashboard, Coal was the top-performing sector of the day as it rose 1% in a weak market.

Most European indices traded in the green, except for England’s FTSE 100 trading flat. However, major Asian indices closed in the red. US index futures traded marginally higher as investors awaited the US Fed’s interest rate decision, scheduled to be announced later today. Brent crude oil futures traded in the red after hitting a 10-month high of $95.9 per barrel on Tuesday.

  • Money flow index (MFI) indicates that stocks like Indian Overseas Bank, Central Bank of India, UCO Bank and HCL Technologies are in the overbought zone.

  • Escorts Kubota rises as its board of directors approves the incorporation of a wholly owned subsidiary as an NBFC. The proposed company will be incorporated with an authorised capital of Rs 700 crore, and the board has approved the infusion of capital up to Rs 200 crore. The company appears in a screener of stocks with no debt.

  • G R Infraprojects declines despite its subsidiary, GR Yamuna Bridge Highway, completing a concession agreement with the Ministry of Road Transport and Highways for the construction of a highway (Yamuna Bridge) in Uttar Pradesh, worth Rs 737.2 crore. It appears on a screener for stocks with increasing revenue for three consecutive quarters.

  • ABB India is rising as it enters a partnership with SMS Group to supply and install medium voltage motors and drives for ArcelorMittal Nippon Steel's hot strip mill in India.

  • Axis Direct upgrades its rating on Tata Steel to ‘Buy’ from ‘Hold’ and raises the target price to Rs 145 from Rs 125. This implies an upside of 12.8%. The brokerage turns positive about the company after the UK Government agreed to grant a 500-million-pound grant for the green transition of Tata Steel's Port Talbot facility. However, it expects the full impact of the transition to be known after negotiations with the employee union conclude.

  • Droneacharya Aerial Innovations rises more than 5% as it signs a franchise agreement with Switzerland’s Wollstone Capital SA for $2.7 million (Rs 23 crore). The company plans to set up 30 Remote Pilot Training Organizations (RPTOs) across India. This collaboration's major goal is to increase drone sales, services, and certified training.

  • Sai Silks (Kalamandir)'s Rs 1,201 crore IPO gets bids for 0.1X the available 3.9 crore shares on offer on the first day of bidding. The retail investor quota gets bids for 0.1X the available 2 crore shares on offer.

  • Signatureglobal (India)'s Rs 730 crore IPO gets bids for 0.5X the available 1.1 crore shares on offer on the first day of bidding. The retail investor quota gets bids for 0.9X the available 19.9 lakh shares on offer.

  • The Organisation for Economic Cooperation and Development (OECD) raises India’s GDP growth forecast for FY24 to 6.3% from the earlier estimate of 6%.  It also revises the inflation projection to 5.3% from 4.8% earlier.

  • Yatra Online's Rs 775 crore IPO gets bids for 1.6X the available 3.1 crore shares on offer on the third day of bidding. The retail investor quota gets bids for 2.1X the available 56.1 lakh shares on offer.

  • Ashok Buildcon is rising as it secures orders worth Rs 645.7 crore from Maharashtra State Electricity Distribution Co. The contracts involve the development of distribution infrastructure under the Revamped Distribution Sector Scheme to carry out energy loss reduction projects.

  • IIFL Finance is rising as HSBC initiates coverage with a ‘Buy’ rating and a target price of Rs 790. According to the brokerage, the company has strengthened its business by making strategic changes like enhanced liability management and stronger risk management. It believes that these changes will aid growth and improved earnings over FY23-26E.

  • Metal stocks like Jindal Stainless, JSW Steel, Vedanta, Jindal Steel & Power and Steel Authority of India are falling in trade. Barring Welspun Corp, all the other constituents of the broader sectoral index, Nifty Metal, are trading in the red.

  • ICICI Securities maintains its ‘Buy’ rating on Bharat Heavy Electricals and raises the target price to Rs 150 from Rs 120. This implies an upside of 20.1%. The brokerage believes that the company will be the key beneficiary of the Centre’s renewed focus on thermal capacity addition. It expects the firm’s revenue to grow at a CAGR of 18.3% over FY23-25.

  • Caplin Point Laboratories declines in trade despite its subsidiary, Caplin Steriles, receiving final approval from the USFDA for its Norepinephrine Bitartrate Injection USP. This injection recorded US sales of approximately $40 million (Rs 333 crore) for the 12-month period ending June 2023. It appears on ascreener for stocks with high momentum scores.

  • SJVN is rising as it signs an MoU with Power Finance Corp for financial assistance to set up renewable energy and thermal power generation projects worth nearly Rs 1.2 lakh crore. The term loan is proposed at 70% of the project cost, which may increase for renewable energy projects based on project requirements.

  • Rakesh Sharma, Executive Director at Bajaj Auto, says the auto industry has witnessed an increase in demand since July, and it has been evenly distributed across urban and rural areas. He adds that the demand for exports has improved in Q2. However, Sharma warns that exports are under pressure due to rising inflation rates and currency devaluation, and anticipates a slower recovery in exports.

  • HDFC Bank is falling as its management expects its non-performing assets (NPAs) to rise and net interest margin (NIM) to contract, owing to the merger with HDFC.

  • Tata Motors is rising following its announcement of a 3% price increase for its commercial vehicles, effective from October 1. The company states that the price hike is to offset the residual impact of high input costs in the past few quarters.

  • R R Kabel’s shares debut on the bourses at a 14% premium to the issue price of Rs 1,035. The Rs 1,964 crore IPO has received bids for 18.7 times the total shares on offer.

  • Reliance Industries declines as reports suggest that 1.9 crore shares (0.3% equity), amounting to Rs 4,512 crore, change hands in a block deal.

  • Aurobindo Pharma's subsidiary, APL Healthcare, receives Form 483 from the US FDA with one observation. This comes after the US FDA performed inspections at the company's formulation manufacturing facility in Andhra Pradesh.

  • Sai Silks (Kalamandir) raises Rs 360.3 crore from anchor investors ahead of its IPO by allotting 1.6 crore shares at Rs 222 each. Investors include Societe Generale, Citigroup Global Markets Mauritius, BNP Paribas Arbitrage, SBI Mutual Fund, Whiteoak Capital, HDFC Mutual Fund and Mirae Asset India.

  • Signatureglobal (India) raises Rs 318.5 crore from anchor investors ahead of its IPO by allotting 82.7 lakh shares at Rs 385 each. Investors include Nomura Trust, Morgan Stanley, Societe Generale, Lion Global Investment Funds, Goldman Sachs, Quant Mutual Fund and Max Life Insurance Co.

  • Blue Star rises to an all-time high of Rs 836 as it opens its Rs 1,000 crore qualified institutional placement issue at a floor price of Rs 784.5. The company appears in a screenerof stocks with strong momentum.

  • NBCC (India)is rising as it bags an order worth Rs 150 crore from the Khadi & Village Industries Commission. The contract involves designing and building office and residential structures across India.

Riding High:

Largecap and midcap gainers today include Au Small Finance Bank Ltd. (755.45, 3.62%), JSW Energy Ltd. (407.50, 3.44%) and Polycab India Ltd. (5,287.60, 2.97%).

Downers:

Largecap and midcap losers today include Indian Overseas Bank (43.85, -5.50%), HDFC Bank Ltd. (1,563.70, -4.01%) and Max Healthcare Institute Ltd. (554.15, -3.53%).

Movers and Shakers

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

Top high volume gainers on BSE included Blue Star Ltd. (907.30, 13.41%), Varroc Engineering Ltd. (493.90, 4.39%) and Au Small Finance Bank Ltd. (755.45, 3.62%).

Top high volume losers on BSE were Reliance Industries Ltd. (2382.15, -2.23%) and Alembic Pharmaceuticals Ltd. (776.35, -0.89%).

Sheela Foam Ltd. (1,168.65, 1.70%) was trading at 4.6 times of weekly average. Mahindra & Mahindra Financial Services Ltd. (309.50, 2.67%) was trading with volume 4.2 times weekly average on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

21 stocks made 52 week highs, while 1 stock tanked below their 52 week lows.

Stocks touching their year highs included - Alembic Pharmaceuticals Ltd. (776.35, -0.89%), Axis Bank Ltd. (1,027.30, 0.25%) and Balkrishna Industries Ltd. (2,543.00, 0.64%).

Stock making new 52 weeks lows included - Orient Electric Ltd. (215.35, -2.36%).

3 stocks climbed above their 200 day SMA including Sheela Foam Ltd. (1,168.65, 1.70%) and Aavas Financiers Ltd. (1,673.00, 0.54%). 9 stocks slipped below their 200 SMA including SRF Ltd. (2,319.85, -2.06%) and Ambuja Cements Ltd. (428.15, -1.95%).

 
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The Baseline
18 Sep 2023
Five analyst picks this week
By Suhas Reddy

1. Ashok Leyland: 

Axis Direct maintains its ‘Buy’ rating on this commercial vehicle manufacturer with a target price of Rs 210, implying an upside of 14.4%. Analysts Aditya Welekar and Shridhar Kallani believe that the company is well-positioned to benefit from the long-term upswing in the commercial vehicle (CV) sector, given its dominant market share and new product launches. They also see its margins improving in the long run due to “operational efficiencies, a material cost reduction programme, softening of commodity costs, and pricing discipline”. 

After interacting with Ashok Leyland’s pan-India dealer network, Welekar and Kallani report a general optimism about the CV upcycle. They note that the demand for medium and heavy commercial vehicles is still strong, while there is a slowdown in the light commercial vehicle segment. The analysts are optimistic about the firm’s strategy to penetrate traditionally weak markets in Northern and Eastern India, grow in the central region, and defend its market share in the southern market. The analysts expect the company’s net profit to grow at a CAGR of 34% over FY23-26.  

2. Astra Microwave Products: 

ICICI Securities maintains a 'Buy' rating on this defence company with a target price of Rs 510, indicating an upside of 20.4%. Analysts Chirag Shah and Vijay Goel emphasize the company's significant strengths in research and development, and  manufacturing. 

The analysts highlight Astra’s ascent up the value chain, transitioning from the manufacturing of subsystems to the development and production of a wide range of high-end, critical microwave and radio frequency-based equipment. They note that the company has a healthy order book, currently standing at Rs 1,580 crore, which is twice its FY23 revenue.

Shah and Goel expect a substantial influx of future orders, given the government's increased capital allocation to the defence and space sectors, which is aimed at reducing defence imports and promoting domestic production. The analysts project impressive growth rates, with EBITDA and PAT expected to grow at a CAGR of 26.3% and 46.7%, respectively, over FY23-25.

3. Bharat Heavy Electricals: 

Geojit Financial Services maintains a 'Buy' rating on this heavy electrical equipment company with a target price of Rs 154, indicating an upside of 21.8%. Analyst Vinod T P holds a positive outlook, primarily because the company, in collaboration with Titagarh Rail Systems, has secured a contract worth Rs 24,000 crore from the Indian Railways. This contract is for the manufacture and supply of 80 Vande Bharat sleeper trains by 2029. Vinod highlights an additional order for an annual maintenance contract, under which Bharat Heavy Electricals will undertake comprehensive maintenance of these trains for 35 years.

The analyst foresees improvements in margins and profitability in the future, driven by increasing revenues in both the power and industrial segments, This outlook is further supported by a robust order book due to the Vande Bharat project, and ongoing efforts towards cost optimization. Moreover, with its well-established reputation and government support, the  company looks well-positioned to thrive in India's evolving energy sector.

4. Maruti Suzuki India: 

Motilal Oswal reiterates its ‘Buy’ call on this car manufacturer with a target price of Rs 11,900, indicating an upside of 13.1%. Analysts Jinesh Gandhi, Amber Shukla and Aniket Desai say, “Stable growth in the domestic private vehicles (PV) market and a favourable product lifecycle augur well for Maruti Suzuki India.” 

The analysts remain optimistic as the company plans to increase its production capacity by another two million units over the next nine years. They notethat Maruti aims to “establish market leadership in the SUV segment”, given its current and upcoming launches in this product category. Moreover, the development of electric vehicles is underway at its Gujarat plant and the first model is to be launched in FY25. The company is also focusing on CNG and other clean fuel options, as it has extended the S-CNG technology to six more models. This would reduce its carbon footprint.

The analysts expect market share gains and margin recovery in FY24, driven by an improvement in supplies, a favourable product lifecycle, a stronger product mix, and operating leverage.

5. Archean Chemical Industries: 

ICICI Securities maintains its ‘Buy’ call on this chemicals company with a target price of Rs 750. This indicates an upside of 24.1%. Analysts Sanjesh Jain, Akash Kumar and Ashvik Jain maintain their stance on the back of recent trends in Bromine prices. They say, “Bromine prices dropped to a 15-year low in China in June but partly recovered in August.” They believe the price fall is due to a mix of greed, speculation and a sudden drop in demand. 

The analysts expect China’s ongoing destocking to last through 2023, positively impacting all bromine producers. This is because China depends on imports to meet its demand, and thus, it cannot create overcapacity. 

Jain, Kumar and Jain say that Archean Chemical’s Q1FY24 result was relatively better despite volatile bromine prices. The resilience is thanks to the company's long-term contracts, and strong performance in the industrial salts segment. The analysts expect Bromine to witness volume recovery by Q4FY24, and prices to firm up only in FY25. They are also optimistic as the company is in the process of commissioning its derivative plant, which increases earnings visibility during the forecasted period.

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

(You can find all analyst picks here