01 Sep 2023
31 Aug 2023
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.
#SulaVineyards share price declined over 4% today amid reports of a block deal in the stock. #StockMarketindiahttps://t.co/AmYaCwQ7w7
— Mint (@livemint) August 31, 2023 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.
Aarti Industries says
— Nigel D'Souza (@Nigel__DSouza) August 31, 2023
????Demand in Q2 has gone up by 10% vs Q1 on an average
Guidance
????Substantial growth expected in FY25
????FY25 EBITDA should be around ?1700cr#StockMarket#Niftyhttps://t.co/nkETsSv6fnAjanta 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.
Brokerage Radar | JPMorgan on Maruti Suzuki: Maintain Neutral; Placing Maruti on Positive Catalyst Watch pic.twitter.com/frwkLrbpWC
— ET NOW (@ETNOWlive) August 31, 2023DCX 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.
Medplus Large Trade | 1.5 cr shares (12.8% eq) worth ?1,319 cr change hands at ?860/sh#LargeTrade#BlockDealpic.twitter.com/bm4ZW9HuIH
— CNBC-TV18 (@CNBCTV18Live) August 31, 2023Quant 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%).
31 Aug 2023
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
30 Aug 2023
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.
The government on Tuesday has decided to extend the deadline of production linked incentive (PLI) scheme for automobile and auto component, by another year to 2027-28, reports @ronendrasingh .#PLI#Automobileshttps://t.co/kisjSSwzhM
— businessline (@businessline) August 30, 2023Zee 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.
According to data from the Grid Controller of India, the country saw a record peak shortage of 9.11 gigawatts (GW)—or over 4% of the peak demand—on 21 August, when peak demand was 226GW.
— Mint (@livemint) August 30, 2023
(@riturajbaruah1 & @UjjvalJauhari report)https://t.co/1cZIPKmYmcStrides 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.
#OnETNOW | "High inventory not a result of sales slowing down," Maruti Suzuki's Shashank Srivastava said.@shashankdrives@Maruti_Corppic.twitter.com/92EQdsebVc
— ET NOW (@ETNOWlive) August 30, 2023Rishabh 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.
#SuzlonEnergy Large Trade | 9 cr shares (1% equity) worth ?232 cr change hands in block deal window#BlockDealpic.twitter.com/hw6XOvAn5M
— CNBC-TV18 (@CNBCTV18Live) August 30, 2023Zomato 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%).
30 Aug 2023
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)
29 Aug 2023
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.
29 Aug 2023
29 Aug 2023
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%.
Indian IT services sector's revenue growth will slow down to 3% in the current year from 9.2% in the previous financial year, according to @ICRALimited#ITsector#revenuegrowth#Indiahttps://t.co/WCfeROVyLG
— Business Standard (@bsindia) August 29, 20233M 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.
#StockMarket | Indian steel companies are expected to add ~22 mt of capacities over next two years and drive volume growth. #MarketNewshttps://t.co/X6NWGYWfBG
— Mint (@livemint) August 29, 2023Axis 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.
The Indian economy likely grew at the fastest pace in four quarters in April-June, with economists expecting GDP to have grown by 7.7% on a year-on-year basis.
Read at ????https://t.co/u4OmcDDPjx
by @SiddharthUbiWan | #GDP#Growth#India#RBI— Moneycontrol (@moneycontrolcom) August 29, 2023
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.
Bharti Airtel Block Deal | 1.1 cr shares (0.16% Equity) worth Rs 922.8 cr change hands at an average of Rs 852.9/share #BhartiAirtel#Airtel#LargeTrade#BlockDealpic.twitter.com/vzJQY7G86f
— CNBC-TV18 (@CNBCTV18Live) August 29, 2023
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.
Brokerage Radar | Investec on Indian Bank: Downgrade to Hold from ‘Buy’: NIMs approaching all-time highs; to decline incrementally pic.twitter.com/rwaWP605WW
— ET NOW (@ETNOWlive) August 29, 2023
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%).
28 Aug 2023
Trendlyne Analysis
Nifty 50 was trading at 19,349.55 (83.8, 0.4%), BSE Sensex was trading at 65,153.78 (267.3, 0.4%) while the broader Nifty 500 was trading at 16,904.00 (83.2, 0.5%),of the 1,956 stocks traded today, 1,183 were on the uptick, and 711 were down.
Indian indices extend their gains from the open and trade in the green, with the Nifty 50 rising above the 19,300 mark. Man Infraconstruction surges more than 5% as it plans redevelopments in the western suburbs of Mumbai. The company expects this project to generate a revenue of Rs 4,000 crore over the next five years.
Nifty Smallcap 100 and Nifty Midcap 100 trade in the green, following the benchmark index. Nifty PSU Bank and Nifty Realty trade higher than Friday’s close. According to Trendlyne’s sector dashboard, Forest Materials, Telecommunications Equipment and coal sectors are trading higher.
Major European indices trade in the green, led by tech and auto stocks. Asian indices also trade higher, in line with the US index futures, which trade in the green after closing higher on a volatile day of trade on Friday. Markets in the United Kingdom remain closed for a summer bank holiday.
Relative strength index (RSI) indicates that stocks like Solar Industries India, Escorts Kubota, C.E. Info Systems and Apar Industries are in the overbought zone.
Solar Industries India and J B Chemicals & Pharmaceuticals touch their all-time highs of Rs 4,848 and Rs 2,937 respectively. The former has risen by 27.8% over the past month, while the latter increased by 17.4%.
Schaeffler India to acquire a 100% stake in KRSV Innovative Automotive Solutions for Rs 142.4 crore. KRSV Innovative owns the brand Koovers, which is an automotive aftersales B2B e-commerce platform. The stock shows up in a screener for companies with no debt.
Piramal Enterprises rises as it readies its buyback offer for 1.4 crore equity shares at an average price of Rs 1,250 per share, aggregating to Rs 1,750 crore. The offer will open on August 31 and close on September 6. The company appears in a screener of stocks with strong momentum.
Bharat Forge surges to its all-time high of Rs 1,056.8 per share as Kalyani Rafael Advanced Systems, a joint venture between its subsidiary and Rafael Advanced Systems wins an order worth RS 2,875.1 crore. The order is from the Indian Ministry of Defence to supply missile systems over the next 12 months.
Larsen & Toubro is rising as it receives shareholder approval for its Rs 10,000 crore share buyback. On July 25, the company announced that it would be buying back 3.3 crore equity shares which amounts to a 2.4% stake. The maximum price of the share buyback has been set at Rs 3,000, nearly a 12% premium from the current market price.
Vishnu Prakash R Punglia's Rs 308.9 crore IPO gets bids for 87.8X the available 2.2 crore shares on offer on the third day of bidding. The retail investor quota gets bids for 32X of the available 1.1 crore shares on offer.
Credit rating agency ICRA anticipates the profitability of non-banking financial companies-microfinance institutions (NBFCs – MFIs) to grow 2.7-3% in FY24 and 3.2-3.5% in FY25 on the back of lower credit costs. It adds that the AUM growth is expected to be around 24-26% in FY24.
The profitability of non-banking financial companies-microfinance institutions (NBFCs-MFIs) is expected to jump to 2.7-3% in 2023-24 and further to 3.2 to 3.5% in FY2025, said ICRA.
— Moneycontrol (@moneycontrolcom) August 28, 2023
Read at ????https://t.co/3i0m5Wp59C#ICRA#MFI#NBFCUNO Minda rises after promoter Nirmal Kumar Minda sells a 1.3% stake in the company in a bulk deal on Friday.
PSU bank stocks like Union Bank of India, Punjab National Bank, Indian Bank and Bank of Maharashtra are rising in trade. All constituents of the broader Nifty PSU Bank index are also trading in the green.
ICICI Securities keeps its ‘Sell’ rating on Mphasis with a target price of Rs 1,727. This implies a downside of 27.2%. The brokerage remains pessimistic about the firm as it sees weak near-term growth due to subdued demand in the Banking and Financial Services vertical, which makes up nearly 50% of revenue. Also, it points out that the company has weaker digital capabilities and lower margins compared to its peers.
According to reports, around 5.5 crore shares of Zomato have changed hands in multiple block deals. Names of the buyers and sellers have not been ascertained. However, Softbank is a likely seller as the lock-in period for investors post-Blinkit deal ended on August 25.
#MarketsWithBS | Shares of Zomato rallied 6% to Rs 96 on the BSE in Monday’s intra-day trade.#Zomato#BSE#markets#sharemarket#buzzingstocks#stockmarkethttps://t.co/cWKEyhAKTJ
— Business Standard (@bsindia) August 28, 2023Garden Reach Shipbuilders & Engineers touches its all-time high of Rs 843.9 per share as it signs a memorandum of understanding (MoU) with DEMPO Group. The MoU is for a collaboration to build commercial vessels in three shipyards of DEMPO at Goa and Bhavnagar.
LT Foods rises after it clarifies that it won't be affected by the Centre's rule to hold lower-priced basmati exports. The company's products are priced above the said limit of $1200 per ton. Other rice exporters like KRBL, GRM Overseas and Chaman Lal Setia are falling in trade.
NMDC Steelis rising after announcing that its Nagarnar Steel Plant produced hot-rolled coil, nine days after producing hot metal. Amitava Mukherjee, Chairman, MD and Director Finance of NMDC said, “With today's development we emerge as the newest entrant in the domestic steel market and have put Bastar on the steel map."
Amber Enterprises India rises in trade as the Singapore government bought over 11 lakh shares, amounting to Rs 316 crore. Ascent Investment Holdings Pte sold (3.7% equity) 12.6 lakh shares worth Rs 353 crore, through block deals. Amber Enterprises appears on a screener for stocks with strong momentum.
Morgan Stanley maintains its ‘Overweight’ rating on Hindustan Aeronautics and raises the target price to Rs 4,365, on the back of a strong growth outlook in India’s aerospace industry. The brokerage expects the firm's products to continue gaining traction to replace foreign-made products.
Brokerage Radar | Morgan Stanley on HAL: Maintain Overweight; HAL's products continue to get traction to replace foreign fleet pic.twitter.com/icrsLLGkJi
— ET NOW (@ETNOWlive) August 28, 2023Man Infraconstruction surges more than 5% as it plans redevelopments in the western suburbs of Mumbai with a carpet area of 17 lakh square feet. The company expects this project to generate a revenue of Rs 4,000 crore over the next five years.
CCL Products falls as its subsidiary Ngon Coffee Company, Vietnam faces a key machinery breakdown. This will interrupt the company's production and consequently affect 6-10% of the net profit. The company appears in a screener of stocks with declining net profit and margins.
Brightcom Group is falling as Chairman & Managing Director Suresh Reddy resigns from the company on Sunday. Chief Financial Officer Narayana Raju also resigns from his post.
Star Health and Allied Insurance Co is falling in trade as reports suggest, 1.9 crore shares (3.7% equity), have changed hands in a block deal.
Star Health Large Trade | 1.9 Cr shares (3.7% equity) change hands in block deal window#StarHealth#BlockDealpic.twitter.com/F9P6SYhBYP
— CNBC-TV18 (@CNBCTV18Live) August 28, 2023BEML is rising as it wins an export order worth $16.7 million (approximately Rs 138 crore) from KAMSS, Russia for its Dozer BD355.
Vijay Kedia buys a 1.7% stake in Atul Auto for approx Rs 19.4 crore in a bulk deal on Friday.
Patel Engineering rises as it bags an order worth Rs 1,818.6 crore along with joint venture partner from NHPC. The order involves construction of head race tunnels for the Dibang multipurpose project. The company appears in a screener of stocks with improving RoA.
Bharat Electronics is rising as it receives an order worth Rs 1,075 crore from Hindustan Shipyards to supply combat management systems (CMS), communication systems, EW systems and other sensors for fleet support ships. This takes the company's order book to Rs 11,380 crore in FY24.
Riding High:
Largecap and midcap gainers today include Solar Industries India Ltd. (4,824.40, 4.94%), Vodafone Idea Ltd. (9.00, 3.45%) and UNO Minda Ltd. (612.45, 3.31%).
Downers:
Largecap and midcap losers today include One97 Communications Ltd. (878.60, -2.29%), CG Power and Industrial Solutions Ltd. (410.60, -1.76%) and Oil India Ltd. (278.00, -1.66%).
Crowd Puller Stocks
10 stocks in BSE 500 are trading on high volumes today.
Top high volume gainers on BSE included Jamna Auto Industries Ltd. (117.60, 8.39%), Laxmi Organic Industries Ltd. (283.35, 7.47%) and Maharashtra Scooters Ltd. (6,766.35, 5.25%).
Top high volume loser on BSE was CCL Products India Ltd. (595.95, -1.82%).
Restaurant Brands Asia Ltd. (121.95, 4.68%) was trading at 9.4 times of weekly average. Star Health and Allied Insurance CompanyLtd. (610.65, 0.07%) and Fine Organic Industries Ltd. (4,707.75, 3.99%) were trading with volumes 6.1 and 6.0 times weekly average respectively on BSE at the time of posting this article.
BSE 500: highs, lows and moving averages
23 stocks overperformed with 52 week highs,
Stocks touching their year highs included - AIA Engineering Ltd. (3,656.90, 0.24%), Bank of Maharashtra (39.75, 1.53%) and Cera Sanitaryware Ltd. (9,236.90, -1.08%).
9 stocks climbed above their 200 day SMA including Laxmi Organic Industries Ltd. (283.35, 7.47%) and Gujarat Narmada Valley Fertilizers & Chemicals Ltd. (589.35, 3.72%). 4 stocks slipped below their 200 SMA including State Bank of India (572.60, 0.46%) and Shoppers Stop Ltd. (718.50, 1.33%).
25 Aug 2023