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The Baseline
01 Sep 2023
Five Interesting Stocks Today

1. Coforge

Thissoftware and services company has been in thenews as its promoter, Baring PE, sold its entire stake of 26.6% through block deals on August 24. The stock gained 9.7% on the day of sale. The complete stake sale by promoters removes the impact of the periodic bulk deal sales by the promoter, which had limited the upside for the stock, despite the firm’s consistent performance. 

According toTrendlyne Technicals, the stock has gained 15.9% in the past month, supported by its strong Q1FY24 results. The firm reported a 2.7% QoQ increase in revenue and a 44% rise in net profit during the quarter. The BFSI segment was the major revenue driver, with a QoQ growth of 4%.

Coforge reported its highest-ever deal wins of $531 million in Q1FY24. Its average deal win in the past four quarters stands at $370 million. This has resulted in a 12-month executable order book of $897 million. Coforge has also reported a net addition of 1,482 employees in the trailing 12 months, a positive trend in contrast to the decline observed in its peers’ employee counts. Another strength lies in Coforge’s attrition rate, which is one of the lowest in the industry at 13.3% in Q1FY24.

The management has provided a revenue guidance of 13%-16% for FY24, with a gross margin expansion of around 50 bps. The revenue growth will be backed by the huge order book, while margin expansion will be aided by moderation in onsite expenses, wage hikes, and a lower attrition rate.

America makes up over half of the company’s Q1 revenue. The growth from this region has improved by 5.8% QoQ. However, top-line growth was impacted by EMEA (Europe, Middle East, Africa) and ROW (rest of world), which have grown by only 1%.

Sharekhan says that the complete stake sale by promoters removes the oversupply of shares and doesn’t limit the upside. Also, the deal wins in the quarter provide visibility for revenue growth. The brokerage maintains its ‘Buy’ rating on the stock.

2. Finolex Industries

This pipe manufacturer hit an all-time high of Rs 250 today, a 24.2% increase in the past month following its Q1FY24 results. The company’s profit has surged by 16.2% YoY to Rs 115.3 crore, beating Trendlyne Forecaster's estimate by 5.6%. Its revenue also grew marginally and features in a screener for stocks with increasing revenue for the past three quarters.

The company’s pipe volume has grown by 28.1% YoY, driven by seasonally strong demand from the agriculture sector, and momentum from the plumbing segment. The overall pipe manufacturing sector saw increased volumes, with competitors like Astral and Apollo Pipes reporting volume growth of 31.1% YoY and 47% YoY, respectively.

EBITDA margin contracted by 612 bps sequentially due to the impact on profitability in the PVC (polyvinyl chloride) resin segment. This was the result of a 40.4% YoY drop in PVC resin price, which led to a lower selling price of existing inventory. Finolex’s management has guided for a 15% CAGR in pipe volume over the next five years. The company has also planned a capex of Rs 200 crore and 250 crore for FY24 and FY25, respectively, mostly for mold additions in pipe and fittings, and maintenance. 

As of Q1FY24, the company has a net cash surplus of Rs 1,650 crore. According to Chief Financial Officer Niraj Kedia, “The surplus cash will be used for expansion, or paid out as dividend or buyback if there are no proper investment avenues.”

ICICI Securities maintains a ‘Buy’ call on Finolex Industries on the back of margin expansion due to lower raw material prices in both agriculture and non-agriculture segments.

3. BSE

This banking & finance stock has surged by more than 5% for three consecutive sessions to touch an all-time high of Rs 1,138.8 per share. The boost came as its derivatives market share increased to 3.4% in August from 0% in April. Its expiry day market share also jumped to 11%. According to Trendlyne’s Technicals, the stock has risen by 31.3% over the past month, helping it to appear in a screener of stocks that have gained more than 20% in the same period.

In addition, rumours have surfaced regarding a potential merger of the exchange with the commodity exchange MCX. This is driven by MCX’s need for  technology-related solutions for its trading platform and BSE’s potential to strengthen its position through MCX’s commodity volumes. The silence from the exchanges regarding these rumours has caused many to take the possibility seriously. 

HDFC Securities has upgraded the stock to a ‘Buy’ rating from ‘Accumulate’, with an increased target price of Rs 1,230 per share. This indicates a potential upside of 9.2%. The brokerage believes that the BSE derivatives will grow on the back of onboarding of large member brokers, the launch of new weekly index contracts, hedging activity, and a continued increase in active traders. It expects the exchange’s revenue to grow at a CAGR of 13.1% over FY22-26, led by growth in transaction revenue.

4. Indian Hotels Co

This hotel chain rose by 7.9% between Wednesday and Friday, reaching a high on Wednesday, followed by new highs on both Thursday and Friday. This surge comes on the back of a healthy business outlook for the hotel industry. Given its expansive presence across India, Indian Hotels is expected to benefit from robust domestic demand and the recovery of inbound international travel to pre-covid levels. Puneet Chhatwal, the MD & CEO of Indian Hotels, says, “We continue to envelop India and are present in over 125 locations across 31 states and union territories.”

Along with these industry tailwinds, events such as the ICC Men’s World Cup, G20 Summit, and the Miss World Beauty Contest being hosted in India are expected to boost travel. In Q1FY24, the company opened five new hotels and signed 11 new hotels (Managed Properties). The management’s plans include the opening of more than 20 hotels and a capex of more than Rs 600 crore in FY24. The company has managed to expand its network without taking on a lot of debt, and shows up in a screener for companies with improving cash flows from operations over the past two years.

With demand continuing to outpace supply in the industry, branded hotel chains have been able to raise room rates. The company expects this favourable supply-demand balance to persist in the coming quarters, allowing it to increase room rates without sacrificing occupancy rates during the holiday season in H2FY24. Trendlyne’s Forecaster estimates the hotel chain’s annual revenue and profit to grow by 13.7% YoY and 22.6% YoY in FY24 respectively.

5. Shoppers Stop

This retailing company declined by over 12% in intraday trade on Monday following the exit of its Managing Director & CEO, Venugopal G Nair, effective from August 31, citing personal reasons. Having held the CEO position since November 2020, Nair’s tenure saw the company’s share price surge by over 300%. The company has appointed Kavindra Mishra, the CEO of Homestop, as the  Executive Director & CEO for a period of three years, effective from September 1, 2023.

Under Venugopal’s leadership, the company implemented a growth plan focusing on four key aspects: private label, omnichannel, beauty business, and store expansion. In Q1FY24, Shoppers Stop introduced an affordable retail format called ‘Intune’. According to Nair, “Intune is a ‘Fashion For All’ format, which is one of our strategic initiatives to cater to young families.”

Despite the company's assurance of maintaining the strategy developed during Venugopal’s tenure, its share price has fallen.The company also stated that it would continue to prioritize opening smaller-sized stores for enhanced efficiency and reiterated its plans to add 12-13 departmental stores for FY24. In Q1FY24, the company added six beauty stores, but the opening of the targeted 2-3 department stores was delayed.

During the quarter, Shoppers Stop’s net profit declined by 36.4% to Rs 14.5 crore due to an increase in employee expenses, and depreciation & amortization costs. Meanwhile, its revenue grew by 4.9% to Rs 1,000.9 crore. According to Trendlyne’s Forecaster, the firm’s revenue is expected to increase by 12.3% in FY24.

Post the announcement of the CEO's resignation, Motilal Oswal reiterates its ‘Neutral’ rating, with a target price of Rs 750. The brokerage believes that the company’s focus on growing its beauty segment, improving the private label mix, and opening smaller-sized stores along with steady store addition guidance, should aid revenues.

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
01 Sep 2023
Market closes higher, Coal India's total production in August rises by 13.2% YoY

Trendlyne Analysis

Nifty 50 closed at 19,435.30 (181.5, 0.9%), BSE Sensex closed at 65,387.16 (555.8, 0.9%) while the broader Nifty 500 closed at 17,074.55 (150.3, 0.9%). Of the 1,934 stocks traded today, 1,177 were on the uptick, and 713 were down.

Indian indices extended their gains from the afternoon session and closed in the green, with the Nifty 50 rising above the 19,400 mark. The volatility index, Nifty VIX, fell 5.7% and closed at 11.4 points. Maruti Suzuki India closed 3.2% higher after its August wholesales rose by 14.5% YoY to 1,89,082 units. Its total domestic wholesales and total exports also increased by 14.5% YoY.

Nifty Smallcap 100 and Nifty Midcap 100 closed higher, taking cues from the benchmark index. Nifty PSU Bankand Nifty Metal closed sharply higher than their Thursday’s close. According to Trendlyne's sector dashboard, Coal was the top-performing sector of the day as it rose 2.9%.

Major Asian indices closed in the green, except for Hong Kong’s Hang Seng index, which closed lower. European indices recovered from their day lows and traded flat or higher. US index futures traded in the green, indicating a positive start to the trading session. Brent crude oil futures extended their gains from Thursday and traded in the green for a fourth consecutive trading session.

  • Bharat Heavy Electricals sees a long buildup in its September 28 future series as its open interest rises 47% with a put-call ratio of 1.2.

  • Coal India is rising as its monthly production in August increases by 13.2% YoY to 52.3 metric tonnes. Its offtake improves by 15.3% YoY to 59 metric tonnes. It appears in a screener for stocks with strong momentum.

  • Sumitomo Chemical India (SCIL) falls despite executing definitive agreements to acquire an 85% equity stake in Barrix Agro Sciences for Rs 85 crore. This allows SCIL to diversify into integrated pest management (IPM) and integrated plant nutrition management (IPNM) products. The company appears in a screener of stocks with no debt.

  • Tata Motors is rising despite its total monthly wholesales in August falling by 1.1% YoY to 76,261 units. The company’s domestic sales remain flat as its passenger vehicle sales decrease by 3% YoY, while its commercial vehicle sales rise by 2% YoY.

  • Mazagon Dock Shipbuilders is rising as it launches its fourth ship of the project 17A frigate series. The ship, named Mahendragiri, boasts advanced features.

  • Rishabh Instruments' Rs 490.8 crore IPO gets bids for 31.7X the available 77.9 lakh shares on offer on the third day of bidding. The retail investor quota gets bids for 8.4X the available 39 lakh shares on offer.

  • Rupen Patel, CMD of Patel Engineering, says the company expects revenue growth of around 15% and margin expansion of 14-15% in FY24. He highlights that the order book currently stands at around 20,000 crore and the firm is working on reducing the Rs 1,950 crore debt.

  • Motilal Oswal Financial Services is falling despite its plan to invest in Gufic Biosciences by acquiring 3.3% of the post paid-up share capital of the company for Rs 100 crore through a preferential issue.

  • Motilal Oswal maintains its ‘Buy’ rating on Vinati Organics with a target price of Rs 2,150. This implies an upside of 15.2%. The brokerage expects the company’s growth to be driven by new product launches and higher production capacity. It expects the firm’s revenue to grow at a CAGR of 11.8% over FY23-25.

  • Maruti Suzuki India's August wholesales rise by 14.5% YoY to 1,89,082 units. Its total domestic wholesales and total exports also increase by 14.5% YoY.

  • Rating agency Moody’s Investors Service hikes India’s GDP growth forecast for 2023 to 6.7% from the earlier estimate of 5.5%. At the same time, it lowers the 2024 growth forecast to 6.1% from 6.5%. It also highlights the risk of higher food prices and agricultural commodity prices.

  • Firstsource Solutions rises to its 52-week high of Rs 174.8 as it appoints Ritesh Mohan Idnani as the new MD and CEO, effective from September 1. This follows the resignation of Vipul Khanna, who served as MD and CEO until August 31.

  • Telecommunications equipment, Forest Materials, Hotels, Restaurants & Tourism and Chemicals & Petrochemicals sectors rise more than 4% over the past week

  • Mahindra & Mahindra is rising as its total auto wholesales in August grow by 19% YoY to 70,350 units. The increase is led by passenger and commercial vehicle sales volumes increasing by 25% YoY and 10% respectively. However, total wholesales remain flat YoY in the company’s farm equipment segment due to a fall in exports.

  • India’s Manufacturing PMI jumps to a three-month high of 58.6 in August, from 57.7 in July, amid robust growth in demand and an increase in new orders.

  • BSE hits an all-time high as the exchange increases its buyback offer price to Rs 1,080 from Rs 816 per equity share. The record date for determining eligible shareholders for the buyback is set for September 14, 2023. The total size of the buyback is Rs 374.8 crore.

  • PVR INOX falls in trade despite the company reporting the highest-ever monthly admissions (1.9 crore guests) in August. It records a gross box office revenue of Rs 532 crore and appears in a screener of stocks with strong momentum.

  • Torrent Pharmaceuticals declines as reports suggest that the company might have submitted a non-binding bid to acquire shares in Cipla. The firm is not willing to comment on these speculative reports due to the absence of verified data. It appears on a screener for stocks within the 'Sell' zone.

  • NCC rises to an all-time high of Rs 176.6 as it bags four orders worth Rs 8,398 crore in August for its electrical division. The orders are from MSEDCL, North Bihar Power Distribution and Bangalore Electricity Supply. The projects include the installation of advanced metering infrastructure and distribution automation systems. The company appears in a screener of stocks with strong momentum.

  • India’s GDP grows to 7.8% in Q1FY24, driven by the services sector and higher capital expenditure.

  • Bajaj Auto is rising despite its total monthly wholesales in August declining by 15% YoY to 3.4 lakh units on the back of a 20% YoY decrease in overall two-wheeler wholesales. This dip in sales is due to a fall in domestic wholesales in the two-wheeler segment and reduced exports in the commercial vehicle segment. The stock shows up in a screener of stocks affected by weak monsoons.

  • BNP Paribas Arbitrage buys a 1.22% stake in ACC for approx Rs 460.2 crore in a bulk deal on Friday.

  • IDFC First Bank falls more than 2%, as reports suggest that 28.1 crore shares (4.5% equity), amounting to Rs 2,526 crore, change hands in a large trade.

  • ITD Cementation is surging in trade as it secures a marine contract worth Rs 3,290 crore. The company shows up in a screener for stocks with consistently high returns over the past five years.

  • Metal stocks like Tata Steel, Hindalco Industries, Jindal Steel & Power, National Aluminium Co and Steel Authority of India are rising in trade. The broader sectoral index, BSE Metal, is also trading in the green.

  • Reliance Industries is rising as Viacom18 reportedly secures the TV and digital rights for the Indian cricket team's home matches. These rights are valid from September 2023 to March 2028 for Rs 5,963 crore. The company appears in a screenerof stocks with improving RoA.

  • Genus Power Infrastructure’s wholly owned subsidiary bags an order worth Rs 2,247.4 crore for the design, supply and installation of smart meters. The company’s total order book stands at Rs 11,000 crore. The stock shows up in a screener for companies with book values per share improving over the past two years.

Riding High:

Largecap and midcap gainers today include Indian Railway Finance Corporation Ltd. (55.75, 11.06%), Vodafone Idea Ltd. (10.00, 10.50%) and Steel Authority of India (SAIL) Ltd. (96.95, 6.89%).

Downers:

Largecap and midcap losers today include HDFC Asset Management Company Ltd. (2,431.25, -3.68%), Torrent Pharmaceuticals Ltd. (1,785.80, -3.08%) and Max Healthcare Institute Ltd. (574.95, -2.48%).

Movers and Shakers

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

Top high volume gainers on BSE included Bharat Heavy Electricals Ltd. (136.15, 12.29%), Indian Railway Finance Corporation Ltd. (55.75, 11.06%) and DCM Shriram Ltd. (1,034.55, 10.99%).

Top high volume losers on BSE were Five-Star Business Finance Ltd. (728.25, -4.88%) and Torrent Pharmaceuticals Ltd. (1,785.80, -3.08%).

ZF Commercial Vehicle Control Systems India Ltd. (14,900.00, 7.81%) was trading at 11.2 times of weekly average. JM Financial Ltd. (86.10, 10.10%) and Heidelberg Cement India Ltd. (192.25, 2.75%) were trading with volumes 7.7 and 6.1 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

72 stocks took off, crossing 52-week highs,

Stocks touching their year highs included - AIA Engineering Ltd. (3,689.00, -0.17%), Bharat Electronics Ltd. (137.85, 3.49%) and Bharat Heavy Electricals Ltd. (136.15, 12.29%).

9 stocks climbed above their 200 day SMA including YES Bank Ltd. (17.35, 3.27%) and Bandhan Bank Ltd. (235.10, 2.40%). 7 stocks slipped below their 200 SMA including NOCIL Ltd. (220.00, -1.98%) and Pidilite Industries Ltd. (2,498.25, -0.67%).

 
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The Baseline created a screener Example mcap screener
01 Sep 2023
 
Trendlyne Marketwatch
Trendlyne Marketwatch
31 Aug 2023
Market closes lower, Rishabh Instruments' Rs 490.8 crore IPO gets bids for 2.5X of shares

Trendlyne Analysis

Nifty 50 closed at 19,253.80 (-93.7, -0.5%), BSE Sensex closed at 64,831.41 (-255.8, -0.4%) while the broader Nifty 500 closed at 16924.30 (-44.7, -0.3%). Market breadth is horizontal. Of the 1,925 stocks traded today, 946 were gainers and 927 were losers.

Indian indices extended the losses from the afternoon session and closed in the red, with the Nifty 50 closing at 19,254. The volatility index, Nifty VIX, rose by 2.2% and closed at 12.1 points. According to a Reuters poll of economists, India’s GDP in Q1FY24 is expected to have grown at 7.7%.

Nifty Midcap 100 and Nifty Smallcap 100 closed higher with the benchmark index closing in the red. Nifty Realty and Nifty IT closed higher, compared to Wednesday’s closing levels. According to Trendlyne’s sector dashboard, telecommunication equipment emerged as the top-performing sector of the day, with a rise of over 2.6%.

Most European indices trade in the green. US indices futures trade higher, indicating a positive start. The data released by Eurostat indicated that the Eurozone’s CPI in August increased by 5.3% against the estimates of 5.1%.

  • Relative strength index (RSI) indicates that stocks like Solar Industries India, Escorts Kubota, Archean Chemical Industries and Suzlon Energy are in the overbought zone.

  • Maruti Suzuki rises to its all-time high of Rs 10,065 per share. It ranks high on Trendlyne's checklist with a score of 78.3%. The stock is in the Buy zone according to the time spent below its current PE. It has a 'Buy' consensus from 28 out of 38 analysts. The company appears in a screener of stocks with strong growth in its annual EPS.

  • Zydus Lifesciences receives final approval from the US FDA for its isotretinoin capsules. The capsule is a generic version of the reference listed drug, accutane capsules and is used in the treatment of severe cystic acne. The drug has an estimated annual sales of $165 million for the year ended July 2023, according to IQVIA.

  • BLS International Services and Welspun India touch their 52-week highs of Rs 296.4 and Rs 127.8 respectively. The former has risen 19.5% over the past month, while the latter increased by 11.1%.

  • Nazara Technologies is rising as it announces that it is considering raising funds through the issuance of equity shares on a preferential basis. The stock shows up in a screener for companies with zero promoter pledges.

  • HDFC Securities upgrades its rating on BSE to ‘Buy’ from ‘Add’ and raises the target price to Rs 1,230 from Rs 940, implying an upside of 18.1%. The brokerage turns positive about the company’s prospects on the back of the success in the derivatives segment led by the launch of a weekly options contract in May. It expects the firm’s market share in the derivatives segment to reach 10% by the end of FY24 from 3.4% currently.

  • Rishabh Instruments' Rs 490.8 crore IPO gets bids for 2.5X the available 77.9 lakh shares on offer on the second day of bidding. The retail investor quota gets bids for 2.8X the available 39 lakh shares on offer.

  • Sula Vineyards is falling as reports suggest that 1.1 crore shares (13.1% equity), amounting to approximately Rs 540 crore, have changed hands in a block deal. Verlinvest Asia Pte is the likely seller in the transaction.

  • According to reports, companies like Colgate-Palmolive, Jubilant Foodworks (Domino's Pizza), Castrol India and Mastek are facing GST claims aggregating Rs 30,000 crore from their respective states. The GST comes on account of transfer of intellectual property rights (IPR) which attracts 18% GST and is currently issued to 200 companies.

  • Natco Pharma rises as it acquires 5.8% stake in USA's ISCA for a cash consideration of $2 million (Rs 16.5 crore). The objective of this acquisition is investment for biocontrol of pests. The company appears in a screener of stocks with high TTM EPS growth.

  • Zee Entertainment Enterprises is falling as the National Company Law Appellate Tribunal (NCLAT) sets October 11 as the date to hear IDBI Bank's plea against the company.

  • Vijay Kedia buys a 1.7% stake in Atul Auto today for approx Rs 19.4 crore through market purchase.

  • IT stocks like Persistent Systems, Coforge, Mphasis, L&T Technology Services and LTIMindtree are rising in trade. All the constituents of the broader sectoral index, Nifty IT, are also trading in the green.

  • Rajendra V Gogri, CMD of Aarti Industries, says that demand is increasing across products and he expects Q2FY24 volumes to grow by 10% QoQ. He adds that the topline growth of the company in FY24 will be similar to FY23, but is positive that it will improve significantly in FY25.

  • Ajanta Pharma falls despite receiving final US FDA approval to market Topiramate Extended-Release Capsules in varying strengths (25 mg, 50 mg, 100mg and 200mg). The drug is used in treating seizures and has a market size of  $175 million in the United States. The company appears in a screener of stocks with improving net cash flow.

  • Zen Technologies rises in trade as it bags an order from Ministry of Defense worth Rs 72.3 crore for implementing the Framework on Simulators that the Government released in September 2021. It appears on a screener for stocks with strong momentum.

  • Aeroflex Industries’ shares debut on the bourses at a 75.9% premium to the issue price of Rs 108. The Rs 351 crore IPO has received bids for 97.1 times the total shares on offer.

  • JP Morgan maintains its ‘Neutral’ rating on Maruti Suzuki with a target price of Rs 8,800. The brokerage keeps a watchful eye on positive catalysts and foresees its potential to outperform competitors in the next two months. It also anticipates robust wholesale volume figures, which will lead to an improvement in market share.

  • DCX Systems is rising following its announcement of entering into a joint venture with ELTA Systems, a subsidiary of Israel Aerospace Industries. The purpose of the joint venture is to develop, produce and distribute obstacle-detection solutions to the railways industry. The stock shows up in a screener for companies with high TTM EPS growth.

  • Tata Power Renewable Energy signs a power distribution agreement with Sanyo Special Steel Manufacturing India to set up a captive solar plant with a capacity of 28.1 MW. The plant is expected to produce 61.9 million units of electricity annually and is expected to be commissioned by March 2024.

  • SVF Growth (Singapore) sells a 1.2% stake in Zomato for approx Rs 947 crore in a bulk deal on Wednesday.

  • Medplus Health Services falls more than 8% today as 1.5 crore shares (12.8% equity), amounting to Rs 1,319 crore, change hands in a large trade, according to reports.

  • Quant Mutual Fund sells a 0.5% stake in Zee Entertainment Enterprises for approx Rs 128.4 crore in a bulk deal on Wednesday.

  • Adani Enterprises is falling as The Guardian reports that the Adani family allegedly invested in its own shares discreetly through multiple foreign accounts in Mauritius, based on documents obtained by the Organised Crime and Corruption Reporting Project (OCCRP).

  • Bharat Heavy Electricals rises to an all-time high of Rs 121.5 as it bags an order to set up a 2x800 MW Supercritical Thermal Power project in Chhattisgarh  from NTPC. The project involves civil and structural works for the engineering, procurement and construction (EPC) package and is expected to be commissioned in the next 4 years. The company appears in a screener of stocks with strong momentum.

  • Rail Vikas Nigam is rising as it emerges as the preferred bidder with a bid of Rs 256.2 crore at an auction held by Maharashtra Metro Rail Corp for multiple projects. The orders are for multiple metro stations and a multistoried building at Tulsi School Land.

Riding High:

Largecap and midcap gainers today include Gland Pharma Ltd. (1,741.45, 9.15%), CG Power and Industrial Solutions Ltd. (429.35, 4.87%) and Persistent Systems Ltd. (5,370.70, 3.56%).

Downers:

Largecap and midcap losers today include Torrent Pharmaceuticals Ltd. (1,842.50, -5.74%), Power Finance Corporation Ltd. (260.20, -4.64%) and Adani Green Energy Ltd. (928.65, -4.31%).

Volume Rockets

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

Top high volume gainers on BSE included Alok Industries Ltd. (19.85, 11.20%), NCC Ltd. (169.60, 10.20%) and Gland Pharma Ltd. (1,741.45, 9.15%).

Top high volume losers on BSE were Medplus Health Services Ltd. (811.40, -8.94%), Torrent Pharmaceuticals Ltd. (1,842.50, -5.74%) and Power Finance Corporation Ltd. (260.20, -4.64%).

Supreme Industries Ltd. (4,457.70, 1.16%) was trading at 18.4 times of weekly average. ACC Ltd. (2,005.75, 0.26%) and Cummins India Ltd. (1,707.75, -1.36%) were trading with volumes 17.4 and 17.4 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

46 stocks overperformed with 52 week highs, while 1 stock were underachiever and hit their 52 week lows.

Stocks touching their year highs included - Bharat Forge Ltd. (1,070.35, 1.25%), Bharat Heavy Electricals Ltd. (121.25, 2.15%) and Cera Sanitaryware Ltd. (9,520.00, 2.14%).

Stock making new 52 weeks lows included - Vedanta Ltd. (232.30, -1.78%).

9 stocks climbed above their 200 day SMA including Sterlite Technologies Ltd. (171.55, 3.44%) and Bajaj Electricals Ltd. (1,161.20, 2.38%). 11 stocks slipped below their 200 SMA including Hindustan Petroleum Corporation Ltd. (248.10, -3.73%) and Bharat Petroleum Corporation Ltd. (340.55, -3.24%).

 
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The Baseline
31 Aug 2023
US market comes back to life for Indian pharma | Screener: Outperforming pharma stocks
By Tejas MD

After hitting its all-time high of 19,991.9 on July 20, the Nifty 50 index missed the much-anticipated 20K level by a sneeze and reversed course. The benchmark is now set to post a monthly loss in August – for the first time since February this year. 

High food inflation in July due to El Nino and a fear of contagion from the shadow banking crisis in China dampened investor sentiment in August. The 20,000 mark remains elusive so far for the Nifty. 

The deathless zombie that is inflation also returned – it rose above the RBI’s upper tolerance limit of 6% in July. 

Food prices had started rising in June, and accelerated in July as farmers across India were hit by unseasonal rains and heatwaves that destroyed several crops. The resulting unexpected rise in food inflation has made investors cautious. 

But despite the Nifty falling in the past month, one industry that rose is Pharmaceuticals. In fact, this industry has outperformed the Nifty 50 over the past quarter and year. 

The pharma sector’s rise accelerated after its Q1FY24 results, as these companies showed healthy revenue and profit growth thanks to a turnaround in the US generics market. This comes after a long period of weakness for Indian drug makers. Is the pharma sector set to continue outperforming in the coming months? Let’s find out.

In this week’s Analyticks, 

  • Mood shift: US market back on pharma companies’ radar as pricing pressures ease
  • Screener: Pharma stocks rising more than 5% over the past month, with YoY growth in net profit and revenue, and operating margin growth

A tough time for Indian pharma in the US may finally end

Domestic pharma companies were the pandemic stars of 2020, but their lights dimmed in 2021 and 2022. The Nifty Pharma underperformed the benchmark Nifty 50 index by 14% and 15.5% in 2021 and 2022 respectively. The US generics market, which had been a cash cow for Indian pharma in the past decade, failed to deliver after the US regulator encouraged more competition in this space. The resulting pressure on prices hit profitability hard. 

But the prolonged period of intense competition in the US saw many losers. On Cipla’s Q1FY24 earnings call, Umang Vohra, Managing Director and Global CEO said, “A large number of US companies are either amalgamating, merging, or going bankrupt. That is eliminating a number of players in the system.”

The pricing pressure has as a result, eased in the past two quarters and the management of all major Indian companies see a better outlook in US generics for FY24. 

Better supply, new launches and lower raw material costs are also driving the generics segment’s rebound.  

The two tough years for Indian pharma saw them improvising more. Drug makers like Sun Pharma, Cipla and Zydus Lifesciences diversified their product mix into complex generics, specialty drugs, peptides and injectables, where the pricing pressure was lower.

Now with the generics segment also recovering, pharma companies are reaping benefits from their efforts in higher-margin complex generics as well as the generics segment.  

Pharma companies outperform the Nifty 50 over the past quarter and six months

US pharma market outperforms Indian market in FY23

Revenue from the US generics market for top pharma companies rose 16% YoY in FY23 and outperformed the domestic market’s growth by a big margin. 

US generics market turns around while the Indian market growth moderates

Top pharma companies’ US business rose sharply in Q1FY24 while Indian business growth moderated.

US and International businesses drive Indian pharma companies’ revenue in Q1FY24

New product launches with drug exclusivity like Revlimid helped grow profit margins in the past two quarters. Companies are focussing on multiple new launches, as margins here are higher before competitors launch alternatives.

To launch a new product in the US, companies need approval from the US Food and Drug Administration (USFDA) via the abbreviated new drug application (ANDA). India’s share in ANDA approvals was at 49% (a record high) of all ANDAs approved in FY23.

Indian drug makers’ ANDA approval share bounces back after a dip in 2021


Falling raw material and freight costs help margins recover

In 2021 and 2022, raw material and freight costs were at an all-time high for pharma companies. But in 2023, raw material and freight costs are on a downtrend. 

Input prices fall YoY after reaching all-time highs in 2022

Input prices of major raw materials like para amino phenol and antibiotics have fallen over the past year and helped pharma companies’ margins rise QoQ and YoY in Q1FY24. 

New product launches and falling input prices help margins rise in Q1

However, active pharmaceutical ingredient (API) manufacturers like Divi's Laboratories are still facing margin pressure, as these companies import a higher percentage of their inputs (key starting materials) from China, which has pricing power. 

China’s share in India’s key starting materials import rises in FY23

API manufacturers also have to compete with China in exports. If China's API exports ramp up, these bulk drug manufacturers’ margin pressures could persist through the year. 

Revenue visibility is high, but growth opportunities are murky

The Indian pharma market (IPM) is expected to grow at a steady CAGR of 8-10% over the next five years. Key factors that drive the IPM are volume growth, price hikes and new product launches. The main reason for IPM growth moderating in FY23 is the slower volume growth.

Indian pharma industry grows 9.3% in FY23 led by price hikes

Pharma companies have tried to offset this with price hikes, but they don’t have complete pricing power. The National Pharmaceutical Pricing Authority sets ceiling prices for several essential drugs that are part of the National List of Essential Medicines (NLEMs).

These ceiling prices are revised in line with changes in the wholesale price index (WPI) to factor in inflation on a YoY basis. 

Number of drugs covered under NLEM is on a steady rise

For non-NLEM products, Indian pharma companies can increase prices by up to 10% every year.

The magic pill for pharma: a diversified product and geo mix

Banking on just US business growth could be risky for Indian pharma companies, as USFDA regulations and inspections can play spoilsport. For example, Cipla’s share fell over 7% after its Pithampur unit got eight observations from the USFDA in February. This issue is yet to be resolved. This is where a diversified product and geo mix comes into play to reduce risks. 

Like any other industry, pharma goes through different cycles as business dynamics change. In a Crisil discussion, Lakhshay Kataria, CFO of J B Chemicals & Pharmaceuticals said, “Two years ago we were apprehensive about the US and international market, but now the US market looks lucrative. So, diversification is key and companies with varied product and geo mixes can ride the winds of change in different geos, and grow at a faster rate”.

Screener: Pharma stocks that are rising over 5% in the past month, with net profit and margin growth

 Natco Pharma’s revenue growth is among the highest in the pharma sector

This week, we take a look at pharma stocks that have performed better than the sector in Q1FY24. This screener shows pharma stocks which have risen more than 5% in share price with growth in Q1FY24 revenues, net profit and operating profit margin. 

Major stocks in the screener are Caplin Point Laboratories, JB Chemicals & Pharmaceuticals, Lupin, Natco Pharma and Ajanta Pharma.

Caplin Point Laboratories rose 20.9% over the past month, the highest among the pharma stocks. It rose on the back of a 14.2% YoY growth in its revenue in Q1FY24, aided by improved sales in the semi-regulated markets of Latin America and Africa which contributed to 86% of its revenue. The company’s net profit increased by 21.7% YoY, which helped in expanding its operating profit margin.

Natco Pharma gained 8.2% over the past month owing to a 28.9% YoY growth in its revenue in Q1FY24, the highest in the pharma sector. Improvement in sales from gRevlimid, domestic and agrochemicals businesses helped revenues improve. Its net profit grew by 31.2% YoY thanks to a reduction in employee benefit expenses.

Lupin has risen 12.7% over the past month due to a 28.6% YoY growth in its revenue in Q1FY24. Improvement in sales from North America, India and active pharmaceutical ingredient (API) businesses led to topline growth. The company also posted a net profit of Rs 452.3 crore in Q1FY24 compared to a loss in Q1FY23. 

You can find more screeners here.

Signing off,

The Trendlyne Team

 
Trendlyne Marketwatch
Trendlyne Marketwatch
30 Aug 2023
Market closes flat, Rishabh Instruments' Rs 490.8 crore IPO gets bids for 0.7X of shares

Trendlyne Analysis

Nifty 50 closed at 19,347.45 (4.8, 0.0%), BSE Sensex closed at 65,087.25 (11.4, 0.0%) while the broader Nifty 500 closed at 16,968.95 (41.7, 0.3%). Of the 1,920 stocks traded today, 1,204 were in the positive territory and 664 were negative.

Indian indices pared their gains from the afternoon session and closed flat, with the Nifty 50 settling just below the 19,350 mark. The Indian volatility index, Nifty VIX, fell 3.5% and closed at 11.8 points. The Centre extended the PLI scheme for automobiles and auto components by one year. Post extension, the five-year scheme will be active until FY28.

Nifty Smallcap 100 rose 1% and closed in the green, outperforming the benchmark index. Nifty FMCG and Nifty IT settled above their Tuesday’s close. According to Trendlyne's sector dashboard, Hotels, Restaurants & Tourism was the top-performing sector of the day as it rose 3.9%.

Major European indices traded lower, except for the UK’s FTSE index, which traded marginally higher. Spanish CPI inflation rose for the second month in a row to 2.6% in August. Asian indices closed flat or higher. US index futures traded in the red, indicating a negative start to the trading session. Brent crude oil futures extended their gains from Tuesday and traded higher.

  • ICICI Bank sees a long buildup in its August 31 future series as its open interest rises 23.6% with a put-call ratio of 0.5.

  • MTAR Technologies rises as it receives the defence industrial license for the production of various mechanical and electronic subsystems.

  • Control Print and DCX Systems touch their 52-week highs of Rs 794.7 and Rs 347.8 respectively. The former has risen 14.9% over the past month, while the latter increased by 21.2%.

  • HDFC Bank, Fortis Healthcare, Eris Lifesciences and Amara Raja Batteries witness a significant surge in mutual fund holdings in the past month.

  • IT stocks like Mphasis, Coforge, Persistent Systems, LTIMindtree and HCL Technologies are rising in trade. All the constituents of the broader sectoral index, Nifty IT, are also trading in the green.

  • Cipla sees five analyst target price upgrades and one recommendation upgrade in the past month. InterGlobe Aviation (IndiGo), Trent, Hero MotoCorp and Dabur India see four analyst target price upgrades over the same time period.

  • Rishabh Instruments' Rs 490.8 crore IPO gets bids for 0.7X the available 77.9 lakh shares on offer on the first day of bidding. The retail investor quota gets bids for 0.9X the available 39 lakh shares on offer.

  • Titagarh Rail Systems rises as it wins an order from the Gujarat Metro Rail Corp worth Rs 350 crore for the supply of 30 standard gauge cars for Ahmedabad metro.

  • The Centre extends the PLI scheme for automobiles and auto components by one year. Post extension, the five-year scheme will be active until FY28. It also plans to disburse incentives on a quarterly basis, instead of yearly, and add two more agencies for testing vehicle components as per the industry’s suggestions.

  • Zee Entertainment Enterprises is rising as the Securities Appellate Tribunal (SAT) refuses to stay the Supreme Court's order to bar Punit Goenka from the boards of Zee Group.

  • Prabhudas Lilladher maintains its ‘Buy’ rating on Reliance Industries and raises the target price to Rs 2,898 from Rs 2,822. This implies an upside of 19.4%. The brokerage remains positive about the company’s prospects due to its transition towards new-age technologies and robust cash flows to fuel growth coming from its refining and petrochemical segment. It expects the firm’s net profit to grow at a CAGR of 10.7% over FY23-25.

  • Metal stocks like Welspun Corp, Steel Authority of India (SAIL), Hindustan Copper and Tata Steel are rising in trade. All constituents of the broader Nifty Metal index are also trading in the green.

  • APL Apollo Tubes rises as its promoter Rahul Gupta exits the company by selling 0.5% equity stake (15 lakh shares). The deal was executed through an open market transaction at an average price of Rs 1,621.5 per share aggregating to Rs 243.4 crore.

  • Oil & gas stocks like Chennai Petroleum Corp, Hindustan Petroleum Corp, Bharat Petroleum Corp and Indian Oil Corp are falling in trade as the government reduces LPG Cylinder prices to Rs 903 from Rs 1,103.

  • India witnesses a record power shortage of 9.11 gigawatts (GW), shows data from the Grid Controller of India. Power demand has been rising since July hitting record levels in August, leading to an increase in shortage of power.

  • Strides Pharma is rising as its subsidiary, Strides Pharma Global, Singapore receives final approval from the US FDA for its mycophenolate mofetil oral suspension. The drug is a generic version of reference listed drug (RLD), cellcept oral solution by Roche Palo Alto. It has a market value of $41 million according to IQVIA.

  • MPS rises as its subsidiary MPS Interactive Systems is set to acquire 65% stake in Liberate Group, Australia and New Zealand. The acquisition will be done at AUD 9.3 million (Rs 49.8 crore). The company appears in a screener of stocks with no debt.

  • Shakti Pumps (India) touches a new 52-week high today as it receives an order for  7,781 pumps worth Rs 358 crore from Haryana Renewable Energy Department (HAREDA) under the KUSUM-3 scheme. It appears on a screener for stocks with strong momentum.

  • Shashank Srivastava, Senior Executive Officer (Marketing and Sales) at Maruti Suzuki India, anticipates robust sales across the auto industry in August. He sees an uptrend in production due to the ease in supply of semiconductors. However, he expects production to moderate in a few models.

  • Rishabh Instruments raises Rs 147.2 crore from anchor investors ahead of its IPO by allotting 33.4 lakh shares at Rs 441 each. Investors include HDFC Mutual Fund, Aditya Birla Sun Life Insurance Co, Quant Mutual Fund, 3P India Equity Fund 1 and Tata Multicap Fund.

  • Lupin rises as its subsidiary Lupin Pharma Canada announced launch of Propranolol LA (long-acting) capsules. The drug is used for the treatment of various cardiovascular conditions. The company appears in a screener of stocks with improving net cash flows.

  • Dalmia Bharat appoints Puneet Dalmia as the new Managing Director & CEO, he will be succeeding Mahindra Singh, whose decade-long tenure will come to an end on December 8. The board has decided to retain the services of Mahindra Singh as Director and Strategic Advisor to the MD & CEO.

  • Suzlon Energy touches a 52-week high of Rs 25.8. Reports suggest that 9 crore shares (1% equity) of the company, amounting to Rs 232 crore, have changed hands in a block deal.

  • Zomato rises as approx 10 crore shares, aggregating to 1.2% stake in the company, change hands in block deals.

  • IndiaMART InterMESH trades flat despite submitting a letter of offer for buyback of 12.5 lakh shares with a face value of Rs 10. The amount shall not exceed Rs 500 crore by way of tender offer on a proportionate basis. The company appears in a screener of stocks nearing 52-week high with significant volumes.

  • Mahindra Lifespace Developers, Indiabulls Real Estate, Macrotech Developers, Oberoi Realty and Phoenix Mills are rising in trade. All the constituents of the broader sectoral index, Nifty Realty, are also trading in the green.

  • G R Infraprojects’ wholly owned subsidiaries execute a concession agreement with the National Highways Authority of India for two projects in Karnataka worth Rs 1,457 crore. The stock shows up in a screener for companies with book value per share improving over the past two years.

Riding High:

Largecap and midcap gainers today include Indian Hotels Company Ltd. (416.65, 5.95%), Zomato Ltd. (99.80, 5.39%) and Jio Financial Services Ltd. (231.25, 4.99%).

Downers:

Largecap and midcap losers today include Indian Bank (380.55, -2.86%), JSW Energy Ltd. (356.80, -2.57%) and Hindustan Petroleum Corporation Ltd. (257.70, -2.35%).

Movers and Shakers

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

Top high volume gainers on BSE included Uflex Ltd. (463.30, 19.99%), Sterlite Technologies Ltd. (165.85, 8.72%) and Sun Pharma Advanced Research Company Ltd. (249.75, 8.56%).

Top high volume losers on BSE were Hindustan Petroleum Corporation Ltd. (257.70, -2.35%), TTK Prestige Ltd. (777.70, -1.38%) and Aavas Financiers Ltd. (1,586.90, -0.89%).

Polyplex Corporation Ltd. (1,216.70, 8.33%) was trading at 17.2 times of weekly average. Mahindra Lifespace Developers Ltd. (559.35, 4.15%) and Prestige Estates Projects Ltd. (610.50, 6.56%) were trading with volumes 9.7 and 8.0 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

33 stocks hit their 52-week highs, while 1 stock was an underachiever and hit its 52-week low.

Stocks touching their year highs included - Axis Bank Ltd. (983.35, 0.27%), Berger Paints (India) Ltd. (715.65, -0.67%) and Bharat Forge Ltd. (1,057.15, -1.21%).

Stock making new 52-week lows included - Rajesh Exports Ltd. (493.15, 1.19%).

21 stocks climbed above their 200 day SMA including Sterlite Technologies Ltd. (165.85, 8.72%) and TeamLease Services Ltd. (2,434.10, 4.15%). 4 stocks slipped below their 200 SMA including Bandhan Bank Ltd. (230.85, -2.10%) and State Bank of India (567.40, -1.30%).

 
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The Baseline
30 Aug 2023
Five analyst picks this week
By Suhas Reddy

1. Pidilite Industries:

Geojit BNP Paribas upgrades its rating on this adhesives manufacturer to ‘Buy’ from ‘Hold’ and raises the target price to Rs 2,792 from Rs 2,726. This implies an upside of 8.4%. In Q1FY24, the company’s net profit rose 32.4% YoY to Rs 468.2 crore and revenue grew by 5.6% YoY. Analyst Anil R says, “Performance in Q1FY24 was driven by volume growth in domestic Consumer & Bazaar (C&B) business segments.” He also points out that a reduction in raw material prices along with operational efficiencies aided healthy growth in net profit. 

The firm’s management expects deeper expansion into rural areas, uptick in construction activity and a good monsoon to push growth in the near term. Also, the company sees exports rising in Q2FY24 and Q3FY24. 

In light of Pidilite’s healthy Q1 performance and the recent correction in the stock price, Anil R believes the firm is trading at an attractive valuation, thus the upgrade in recommendation and target price. He expects the company’s net profit to grow at a CAGR of 30% over FY23-25.

2. 3M India:

ICICI Securities maintains its 'Buy' rating on this industrial machinery company with a target price of Rs 35,200, implying an upside potential of 11.5%. Analysts Aniruddha Joshi, Karan Bhuwania, and Nilesh Patil have a positive outlook, given the growth of 3M’s end-user industries such as automotive, infrastructure, and manufacturing. These factors bode well for 3M India.

The analysts highlight the company's pricing power, successfully transferring added costs and boosting EBITDA margins to 15.3% in FY23 from 11.7% in FY22. They foresee growth through new products and strategic partnerships, coupled with expenditure reduction in ad spend and working capital, driving improved FY23 margins.

Additionally, the analysts are of the opinion that the company boasts robust brand value and stands to gain from its well-established distribution network. They also factor in 3M India's global relationships with major manufacturers. They believe that 3M India should benefit significantly from its access to the technological resources of its parent company.

3. Mahindra & Mahindra:

Sharekhan maintains its buy call on this automobile manufacturer and raises its target price to Rs 1,736. This indicates an upside of 9.9%. Analysts from Sharekhan say, “Mahindra & Mahindra strategically aims to strengthen positioning in the overseas market with the introduction of global products.” 

The analysts remain optimistic as the company introduced multiple concept vehicles to cater to domestic as well as international markets in the tractor, E-SUV, and pick-up vehicle segment. Mahindra launched the OJA platform in the lightweight tractor segment and Thar.e in the electric SUV segment. Even though historically the company’s operating performance was largely dependent on the tractor segment, the analysts now believe that the auto segment will drive its operating performance in the coming years due to increasing volumes going ahead. 

The analysts maintain the call on the back of a robust order book in the private vehicle segment, market leadership in the tractor segment, opportunity to grow in farm machinery and its road map for the electric vehicles space.

4. CIE Automotive India:

ICICI Direct assigns a ‘Buy’ rating to this auto parts manufacturer with a target price of Rs 625, indicating an upside of 21.4%. The company’s management plans to incur a growth capex of approx 5% of its sales. At the same time, it plans on improving operational efficiencies in its European operations. 

Given the new order wins in the electric vehicle (EV) domain accompanied by  the growing domestic market, cyclical upswing in commercial vehicle space, and steady demand for two-wheelers, the analyst Shashank Kanodia says, “CIE is well poised for double-digit revenue growth and a further improvement in margins.”

The analyst believes that India is being looked at as a credible alternate manufacturing hub amid the China +1 trend, and so will be a focus for auto ancillaries. He also remains positive about the company as it is actively de-risking its existing business product profile by entering into EV products, which provide growth longevity. He assigns the call on the back of improving margins, return ratios and consistent healthy cash flow generation.

5. Bajaj Auto:

Axis Securities maintains a 'Buy' rating on this 2/3 wheeler company with a target price of Rs 5,400, indicating an upside of 15.8%. Analysts Aditya Welekar and Shridhar Kallani are optimistic about the company's future due to its focus on electric vehicles (EV) and premium motorcycles, which align with changing industry trends.

Despite lower sales volumes in FY23, analysts at Axis Securities believe the company performed well. They attribute this success to higher average selling prices (ASPs) of their vehicles, driven by price hikes, increased domestic sales, and a larger share of the 125cc+ segment and three-wheeler sales.

The analysts also highlight the company's strong brand value, citing its exclusive dealership networks for KTM and the recent launch of Triumph motorcycles. They consider the company's investment plans for FY24 as a significant growth driver, with Rs 1,000 crore allocated for expansion, which includes Rs 500 crore specifically for the EV segment.

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
29 Aug 2023
By Akshat Singh

One thing CEOs cannot avoid is attention to their compensation packages. If you are in the C-suite of a listed company, your salary is inevitably going to be discussed and compared to your peers. There is danger on the upside (“Aren’t they getting too much?”) and on the downside (“Maybe they are not a great CEO.”) 

But these salaries also showcase a company's values, their talent retention strategies, and dedication to fairness. Narayana Murthy, the founder of Infosys, was for example extremely against high salaries for the top management, saying that a CEO salary should not be more than 25X of the least paid employee. That rule, if we look at the top paid CEOs, has long been thrown out of the window. 

CEO salaries are also potential red flags. For instance, a big YoY jump in CEO pay when the company’s revenue or net profit fell considerably in the same period raises corporate governance questions. 

In this edition of Chart of the Week, we explore major market sectors to examine the highest CEO salaries from Trendlyne’s CEO salary dashboard, and compare them as a percentage of their companies' FY23 revenues.

We begin our analysis with the most highly-paid sector, software and services. Thierry Delaporte, the Managing Director & CEO of Wipro, leads with an annual remuneration of Rs 82.4 crore in FY23. This is a 3.3% rise from his remuneration in FY22 as the company’s revenue grew by 14% YoY in FY23 while the net profit declined by 7.2% YoY. His earnings account for 0.1% of the company’s FY23 revenue. 

In the same sector, Sandeep Kalra, the Executive Director & CEO of Persistent Systems, earns an annual salary of Rs 61.7 crore in FY23, a substantial 31.6% rise from FY22. This is 0.7% of the company’s FY23 revenue of Rs 8,421.2 crore. The company did very well during the IT slowdown, posting an increase in net profit by 33.4% YoY in FY23. 

Coming in third is Nitin Rakesh, the Managing Director & CEO of Mphasis, who receives an annual remuneration of Rs 59.2 crore in FY23, equivalent to 0.4% of the company’s FY23 revenue of Rs 13,960.1 crore.

Turning our attention to the banking and finance sector, Keki M Mistry, the Vice-Chairman & CEO of Housing Development Finance Corp, emerges as a prominent figure with an annual salary of Rs 20.8 crore in FY23. However, it's worth noting that HDFC is delisted due to the significant merger involving HDFC and HDFC Bank. As of August 2023, Keki Mistry is no longer CEO and is to be a ‘strategic advisor’ to all the financial ventures of Poonawalla Group. VP Nandakumar, the Managing Director & CEO of Manappuram Finance, receives an annual remuneration of Rs 18.6 crore in FY23, a 6% increase from FY22. This increase can be attributed to a 12.6% YoY growth in net profit in FY23. This is  0.3% of the company’s FY23 revenue of Rs 6,749.9 crore. 

Shalabh Saxena, the Managing Director & CEO of Spandana Sphoorty Financial, comes in third, and draws an annual salary of Rs 15.7 crore in FY23, constituting 1.1% of the company’s FY23 revenue of Rs 1,477 crore. The CEO's salary rose to 15.6 crore from 15.7 lakh in FY22 due to the share based payment of Rs 15.1 crore made by the company in FY23.

In the automobiles and auto components sector, Jayadev Galla, the Chairman, MD & CEO of Amara Raja Batteries, commands an annual remuneration of Rs 52.6 crore, marking a 38.5% increase from FY22. The rise in remuneration can be credited to a surge in net profit of 35.5% YoY for the company in FY23. His earnings make up 0.5% of the company’s FY23 revenue of Rs 10,480.2 crore. 

Meanwhile, Rajiv Bajaj, the Managing Director & CEO of Bajaj Auto, gets an annual salary of Rs 47.6 crore in FY23, reflecting a modest 4.3% increase from FY22. This remuneration constitutes 0.1% of the company’s revenue of Rs 37,642.9 crore in FY23.

Vivek Vikram Singh, Managing Director & Group CEO of Sona BLW Precision Forgings comes in third. He was paid Rs 12.5 crore as remuneration in FY23. His salary was reduced by 14.2% from FY22 due to a muted growth of 9% in the company’s net profit in FY23. 

In the research & development heavy pharmaceutical and biotechnology sector, Kiran S Divi, the Whole-Time Director & CEO of the family-run Divi’s Laboratories, holds the highest annual remuneration of Rs 24.8 crore in FY23, despite experiencing a 34.2% reduction in pay from FY22. The company saw a fall in net profit of 38.4% YoY in FY23. His earnings represent 0.3% of the company’s revenue in FY23. Chava Satyanarayana, the Executive Director & CEO of Laurus Labs, follows with an annual salary of Rs 18.6 crore in FY23, followed by Umang Vohra, the Managing Director & Global CEO of Cipla, who earns Rs 17.5 crore.

Lastly, we look at the cost-sensitive metals and mining sector, where TV Narendran, the Managing Director & CEO of Tata Steel, commands an annual remuneration of Rs 18.7 crore in FY23, marking a 4.3% decrease from FY22. This fall can be associated with a fall in net profit of 78.2% YoY in FY23 . 

Sunil Duggal, the Whole-Time Director & CEO of Vedanta, receives an annual salary of Rs 14.6 crore. Although the company’s net profit fell by 43.8% YoY in FY23 his compensation increased by 33.8% in the same period. 

Jayant Acharya, Joint Managing Director & CEO of JSW Steel comes in third. He was compensated with Rs 10.7 crore as remunerations in FY23. His salary surged by 137.1% from FY22 levels although the company's net profit fell by 80% in FY23.

For more details on annual CEO salaries, you can check Trendlyne’s CEO Salary Dashboard.

 
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The Baseline created a screener screener test
29 Aug 2023
 
Trendlyne Marketwatch
Trendlyne Marketwatch
29 Aug 2023
Market closes higher, Maruti Suzuki plans to invest Rs 45,000 crore to double its capacity

Trendlyne Analysis

Nifty 50 closed at 19,342.65 (36.6, 0.2%) , BSE Sensex closed at 65,075.82 (79.2, 0.1%) while the broader Nifty 500 closed at 16,927.30 (52, 0.3%). Of the 1,931 stocks traded today, 1,117 were on the uptrend, and 753 went down.

Indian indices fell from their day highs but managed to close marginally higher, with the Nifty 50 settling below the 19,350 mark. The Indian volatility index, Nifty VIX, fell 1.4% but still closed above 12.2 points. Maruti Suzuki closed higher after its Chairman R.C. Bhargava announced that the company plans to invest Rs 45,000 crore to double its production capacity to 4 million cars by FY30-31.

Nifty Midcap 100 and Nifty Smallcap 100 closed in the green, outperforming the benchmark index. Nifty Realty and Nifty IT settled higher than their Monday’s close. According to Trendlyne's sector dashboard, Chemicals & Petrochemicals was the top-performing sector of the day as it rose 3.1%.

Major European indices traded in the green, taking cues from the Asian indices, which closed higher. US index futures traded flat, indicating a cautious start to the trading session. Brent crude oil futures recovered from their day lows and traded in the green on a volatile day.

  • Money flow index (MFI) indicates that stocks like Chemplast Sanmar, Cera Sanitaryware, Shyam Metalics & Energy and KFIN Technologies are in the overbought zone.

  • PG Electroplast rises to an all-time high of Rs 2,036.3 as its Q1FY23 net profit increases by 106.1% YoY to Rs 33.8 crore. Its revenue also grows by 26.5% YoY on the back of robust growth in domestic sales. Furthermore, the company announces a fundraise by qualified institutional placements, setting a floor price of Rs 1,641.1 per share for the offer. The company appears in a screener of stocks with growing net profit and margins.

  • Finolex Industries surges more than 5% in trade to reach its 52-week high of Rs 241.2 per share. The stock has a consensus estimate of 'Buy' from eight out of 13 analysts. However, it is in the Sell zone according to time spent below its current PE. The company appears in a screener of overbought stocks according to the money flow index (MFI).

  • Maruti Suzuki’s Chairman R.C. Bhargava announces that the company plans to invest Rs 45,000 crore to double its production capacity to 4 million cars by FY30-31. The management also expects the company’s revenue to double during the same time period.

  • Bharat Forge rises to touch its 52-week high of Rs 1,076 as reports suggest that Nomura finds the stock to be trading at an attractive valuation. The brokerage keeps a ‘Buy’ rating on the stock, with a target price of Rs 1,157. It expects rapid growth in the defence business vertical on the back of a robust order inflow.

  • Credit rating agency ICRA expects revenue growth in the IT services sector to decrease to 3-5% in FY24, citing muted demand. It also anticipates a decline in profitability, with the operating profit margin narrowing to 20-21%.

  • 3M India, Atul, Gujarat Fluorochemicals, Thermax and Pidilite Industries are trading above their third resistance or R3 levels.

  • KPI Green Energy bags multiple orders totaling a 9.7 MW capacity of solar power projects. Out of the total capacity, 4.7 MW will be undertaken by KPI Green Energy while 5MW will be undertaken by its subsidiary, Sun Drops Energia.

  • Lupin receives approval from the US Food and Drug Administration for its Abbreviated New Drug Application for Pirfenidone Capsules. The drug had estimated annual sales of $95 million in the United States as of June 2023.

  • Pyramid Technoplast’s shares debut on the bourses at a premium of 12.7% over the issue price of Rs 166. The IPO of Rs 153.1 crore has received bids for 18.3 times the available shares.

  • Prabhuas Lilladher expects Indian steel companies to add around 22 MT of capacities over the next two years and boost volume growth. The brokerage believes JSW Steel, Jindal Steel & Power and Tata Steel are primed to benefit from the upcoming capacity addition. It has initiated coverage on the following companies with a ‘Buy’ rating.

  • Axis Direct keeps its ‘Buy’ rating on JK Cement with a target price of Rs 3,560, implying an upside of 10.4%. The brokerage expects the company to sustain its growth path, benefiting from expanded production capacity and strong market reach. It expects the firm’s net profit to grow at a CAGR of 62.2% over FY23-25.

  • Bayer Cropscience’s Vice Chairman, Managing Director and CEO, Duraiswami Narain, resigns from his post with effect from October 31, owing to his planned return to Bayer US. Simon Wiebusch will replace him starting from November 1.

  • As per an economist poll, India's GDP is expected to have grown by 7.7% YoY in Q1FY24, marking the fastest rate in four quarters. This growth is attributed to strong domestic demand and the government's emphasis on capital expenditure.

  • Rashtriya Chemicals & Fertilizers surges more than 5% as the Department of Public Enterprise grants the company Navratna status. Companies with the Navratna status can invest up to Rs 1,000 crore without needing approval from the central government.

  • Forest materials, telecommunications equipment, fertilizers and chemicals & petrochemicals sectors gain more than 4% in trade over the past week.

  • Indiabulls Housing Finance is falling despite Hrti buying 1.5% stake (or 71.8 lakh) shares in the company for Rs 132.6 crore in a bulk deal.

  • University of Notre Dame Du Lac sells a 2.9% stake (around 1.7 crore shares) in Star Health and Allied Insurance Co, for approximately Rs 1,016 crore in a bulk deal on Monday. In another deal, Fidelity Investment Trust picks up a 2.1% stake (1.2 crore shares) in the company.

  • According to reports, 1.1 crore shares (0.16% equity) of Bharti Airtel, amounting to Rs 922.8 crore, have changed hands in a block deal.

  • Som Distilleries & Breweries is witnessing a rise after gaining approval to supply its beer brands to Chhattisgarh. The company has already initiated the initial shipments to the state. It appears in a screener for stocks with strong momentum.

  • Capacit'e Infraprojects is rising as it bags an order worth Rs 575 crore in a joint venture with Mohan Mutha Exports from Rail Vikas Nigam. This is an engineering, procurement and construction order to be executed in Maldives within a period of 18 months. The company appears in a screener of stocks with strong annual EPS growth.

  • Investec has downgraded its rating on Indian Bank to 'Hold', while simultaneously raising the target price to Rs 430. The brokerage's rationale is based on the anticipation that, despite the bank's net interest margins (NIMs) approaching their historical peak, there will be a gradual decline. The analysis also indicates that the bank will benefit significantly from the reduction in credit costs over the short term.

  • Gokaldas Exports surges in trade following its agreement to acquire UAE-based apparel manufacturer Atraco Group for an equity value of $55 million (around Rs 454.5 crore). The funding will involve a mix of debt and internal accruals. The stock shows up in a screener for companies with high consistent returns over the past five years.

  • Zomato rises despite Tiger Global Management's Internet Fund III offloading its remaining 1.4% equity shares (12.3 crore shares) and subsequently exiting the company. The deal was executed through an open market transaction at an average price of Rs 91 per share aggregating to Rs 1,123.8 crore. The company appears in a screener of stocks with low durability.

  • Realty stocks like Macrotech Developers, Indiabulls Real Estate, DLF, Sobha and Brigade Enterprises are rising in trade. Barring Phoenix Mills, all the other constituents of the broader sectoral index, Nifty Realty, are trading in the green.

  • SJVN’s wholly-owned subsidiary, SJVN Green Energy bags orders worth Rs 1,900 crore from the Assam Power Development Corp. The orders involve the construction of three solar power projects with a cumulative capacity of 320 MW in Assam.

Riding High:

Largecap and midcap gainers today include Deepak Nitrite Ltd. (2,170.20, 6.46%), JSW Energy Ltd. (366.20, 5.46%) and Macrotech Developers Ltd. (672.75, 4.31%).

Downers:

Largecap and midcap losers today include Union Bank of India (86.25, -6.30%), Procter & Gamble Hygiene & Healthcare Ltd. (15,770.00, -3.97%) and One97 Communications Ltd. (852.90, -3.39%).

Volume Shockers

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

Top high volume gainers on BSE included Vaibhav Global Ltd. (442.05, 11.98%), PCBL Ltd. (170.20, 8.51%) and Alkyl Amines Chemicals Ltd. (2,515.60, 8.50%).

Top high volume losers on BSE were Union Bank of India (86.25, -6.30%), APL Apollo Tubes Ltd. (1,625.10, -2.62%) and Kajaria Ceramics Ltd. (1,441.85, -1.90%).

Eureka Forbes Ltd. (511.15, 2.11%) was trading at 31.9 times of weekly average. Gujarat Pipavav Port Ltd. (127.95, 7.07%) and SIS Ltd. (459.00, -0.44%) were trading with volumes 17.3 and 15.9 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

29 stocks took off, crossing 52 week highs, while 1 stock were underachiever and hit their 52 week lows.

Stocks touching their year highs included - 3M India Ltd. (31,581.15, 3.64%), Berger Paints (India) Ltd. (720.45, 1.61%) and Bharat Forge Ltd. (1,070.10, 1.99%).

Stock making new 52 weeks lows included - Rajesh Exports Ltd. (487.35, -3.53%).

13 stocks climbed above their 200 day SMA including NOCIL Ltd. (228.70, 4.88%) and Indraprastha Gas Ltd. (462.65, 4.28%). 2 stocks slipped below their 200 SMA including Gujarat State Petronet Ltd. (273.95, -1.17%) and Dabur India Ltd. (550.15, -0.72%).