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Trendlyne Marketwatch
Trendlyne Marketwatch
10 Aug 2023
Market closes lower, Pidilite Industries' Q1 net profit up 32.4% YoY to Rs 468.2 crore

Trendlyne Analysis 

Nifty 50 was trading at 19,541.00 (-91.6, -0.5%), BSE Sensex was trading at 65,759.80 (-236.0, -0.4%) while the broader Nifty 500 was trading at 16,942.20 (-61.7, -0.4%), of the 1,904 stocks traded today, 916 were on the uptrend, and 916 went down.

Indian indices extend the losses from the morning session and trade in the red, with the Nifty 50 trading below the 19,600 mark. India's volatility index, Nifty VIX, rises by 4.1%.

The RBI in its monetary policy meeting today kept the interest rate unchanged at 6.5%. RBI raised the CPI inflation forecast for FY24 to 5.4% from an earlier estimate of 5.1%. Banks have been asked to maintain an incremental cash reserve ratio of 10% on their deposits. This is expected to remove Rs 1 lakh crore liquidity from the banking system.

Nifty Smallcap 100 and Nifty Midcap 100 trade flat with the benchmark index trading lower. Nifty Media and Nifty Metal trade in the green. According to Trendlyne’s sector dashboard, media, commercial services & supplies, and oil & gas are trading higher.

Most major Asian indices trade higher except for Taiwan’s TSEC 50 trading in the red. European indices futures trade higher, indicating a negative start. European luxury stocks gain as China allows group tours to Europe, US, and Japan.

  • Max Financial Services sees a long buildup in its August 31 future series as its open interest rises 29.4% with a put-call ratio of 0.68.

  • Zydus Lifesciences, Godrej Industries, PNC Infratech and Indian Railway Finance Corp's weekly average delivery volumes rise ahead of their Q1FY24 results tomorrow.

  • Samvardhana Motherson International is falling despite its Q1FY24 net profit surging by 325.5% YoY to Rs 600.9 crore and its EBITDA margin expanding by 2.3 percentage points YoY. The company's revenue increases by 27.2% YoY, led by healthy growth in the wiring harness, polymer products and vision systems business verticals. Vivek Chaand Sehgal, Chairman of the company, says, “We have delivered another quarter of strong performance. The automotive industry is stabilising with new cost structures, and Motherson continues to adapt to the evolving landscape.”

  • Zee Entertainment Enterprises surges as the National Company Law Tribunal reportedly approves its merger with Sony. This deal will lead to the creation of a $10 billion media company.

  • V-Mart Retail reports a loss of Rs 21.9 crore in Q1FY24, as against a profit of Rs 20.5 crore in Q1FY23, despite a 14.9% YoY rise in revenue. The loss is due to an increase in inventory costs. The company features in a screener of stocks with low debts.

  • Page Industries rises despite its Q1FY24 net profit falling 23.5% YoY to Rs 158.4 crore due to higher inventory and finance expenses. Its revenue decreases by 7.6% YoY, aided by the e-commerce platform. The company appears in a screener of stocks with declining cash flow from operations.

  • Pidilite Industries is falling despite its Q1FY24 net profit rising 32.4% YoY to Rs 468.2 crore. Its EBITDA margin also expands by 4.5 percentage points YoY to 21.6% and revenue increases by 5.6% YoY, led by its consumer business segment. The stock shows up in a screener for companies with book value per share improving over the past two years.

  • Bata India is falling as its Q1FY24 net profit declines 10.5% YoY to Rs 106.9 crore due to higher inventory costs. Its revenue rises marginally by 1.6% YoY to Rs 958.2 crore. The stock shows up in a screener for companies with declining net profit and profit margins on a YoY basis.

  • TVS Supply Chain Solutions' Rs 880 crore IPO gets bids for 0.24X the available 2.5 crore shares on offer on the first day of bidding. The retail investor quota gets bids for 1.19X of the available 46.3 lakh shares on offer.

  • Aditya Saraogi, CFO of Birla Corp, says the company maintains its guidance of volume growth of over 15% and EBITDA per tonne of around Rs 850 for FY24. The company’s cement sales by volume grew 12.2% YoY in Q1FY24.

  • HDFC Securities initiates coverage on Metro Brands with a ‘Sell’ rating and a target price of Rs 840, implying a downside of 19%. The brokerage believes that the stock is trading at a bloated valuation and sees margin pressure increasing in the coming quarters. It also expects a slowdown in urban demand, a predominance of products below Rs 1,500 in the product mix, and an increasing share of discounted sales to impact the firm's operational performance.

  • CarTrade Tech is rising despite witnessing a 13.1% QoQ decline in net profit to Rs 13 crore in Q1FY24. Its revenue falls by 10.2% QoQ to Rs 8,607 crore. The company appears in a screener of stocks with rising cash flow from operating activities.

  • Zee Entertainment Enterprises rises as it awaits NCLT's verdict on the Sony merger case. However, its Q1FY24 net loss stands at Rs 53.4 crore, compared to a net profit of Rs 106.6 crore in Q1FY23. The company's revenue grows by 6.5% YoY, driven by its subscription business. It appears in a screener of stocks with a significant decline in TTM net profit.

  • ITD Cementation India touches a 52-week high today as it bags an order worth Rs 17,000 crore from Power Grid Company of Bangladesh. The company will collaborate with Transrail Lighting in a joint venture for this project. The project involves the development of a 400 kV double circuit transmission line on a turnkey basis in the Jamuna river crossing section of Bogura-Kaliakair, Bangladesh. It appears in a screener for stocks with strong momentum.

  • CMS Info Systems falls more than 5% as reports suggest that 3.2 crore shares (21.6% equity), amounting to Rs 1,163.3 crore, have changed hands in a large trade.

  • Suzlon rises as its board approves the raising of Rs 2,000 crore through a qualified institutional placement. The board has set the minimum price at Rs 18.4 per share and will approve the issue price on August 14. The company appears in a screener of stocks with increasing FII/FPI shareholdings.

  • PI Industries’ Q1FY24 net profit rises 45.9% YoY to Rs 382.9 crore, while its revenue increases by 23.8% YoY led by robust growth in the agrochemicals segment. The stock shows up in a screener for companies with no debt.

  • JB Chemicals & Pharmaceuticalsrises to a new 52-week high of Rs 2844.5 as its Q1FY24 net profit increases by 35.5% YoY to Rs 142.3 crore. Its revenue grows by 14.8% YoY, aided by the domestic formulations segment. The company appears in ascreener of stocks with increasing net profit and margins.

  • Axis Bank is falling after announcing that the company and its subsidiaries will infuse Rs 1,612 crore into Max Life Insurance Co through preferential allotment. This will raise the bank’s stake in Max Life Insurance Co to 19% from 16.2%. The bank believes that this acquisition will aid in strengthening its position in the life insurance business.

  • JSW Steel’s monthly total crude steel production in July rises by 12% YoY to 20.4 lakh tonnes. Production from its Indian businesses grows 10% YoY to 19.7 lakh tonnes, while it jumps 96% YoY to 67,000 tonnes for the US business. The stock shows up in a screener for companies with decreasing promoter pledges.

  • The RBI's MPC maintains India's real GDP growth forecast for FY24 at 6.5%. It revises the prediction for India’s CPI inflation to 5.4% in FY24 from 5.1%. RBI Governor Shaktikanta Das says the MPC remains committed to keeping inflation at 4%.

  • TVS Supply Chain Solutions raises Rs 396 crore from anchor investors ahead of its IPO by allotting 2.01 crore shares at Rs 197 each. Investors include Tata Mutual Fund, Franklin India Mutual Fund, SBI Life Insurance, Societe Generale, and BNP Paribas Arbitrage.

  • Abbott India touches a new all-time high of Rs 24,744.2 per share as its net profit grows by 41.1% YoY to Rs 290.2 crore in Q1FY24. Revenue increases by 13.4% YoY to Rs 1,479 crore. Its EBITDA margin improves by 328 bps YoY, aided by reduced employee benefit expenses. It shows up in a screener of stocks with rising return on equity over the past two years.

  • Media stocks like TV18 Broadcast, Zee Entertainment Enterprises, Hathway Cable & Datacom and Sun TV Network are rising in trade. The broader sectoral index Nifty Media is also trading in the green.

  • RBI decides to keep the policy repo rate unchanged at 6.5% during the Monetary Policy Committee (MPC) meeting.

  • IRCTC falls as its Q1FY24 net profit decreases by 5.4% YoY to Rs 232.2 crore due to exceptional charges for two Tejas Express trains. However, its revenue grows by 18.7% YoY, aided by the catering, tourism and Rail Neer segments. The company appears in a screener of stocks showing increasing trend in non-core income.

  • Tata Power is rising as its net profit grows by 22.4% YoY to Rs 972.5 crore in Q1FY24. Revenue improves by 5.2% YoY, aided by the transmission and distribution segment. Its EBITDA margin expands by 774 bps YoY owing to reduced costs of fuel and raw materials. The company features in a screener of stocks near their 52-week highs with significant volume.

Riding High:

Largecap and midcap gainers today include Max Financial Services Ltd. (875.00, 10.80%), Trent Ltd. (1,890.00, 5.71%) and JSW Energy Ltd. (327.95, 4.36%).

Downers:

Largecap and midcap losers today include Laurus Labs Ltd. (397.15, -3.22%), ICICI Lombard General Insurance Company Ltd. (1,356.00, -2.73%) and Indraprastha Gas Ltd. (447.80, -2.71%).

Crowd Puller Stocks

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

Top high volume gainers on BSE included Varroc Engineering Ltd. (386.85, 12.83%), Max Financial Services Ltd. (875.00, 10.80%) and Jubilant Pharmova Ltd. (442.00, 9.20%).

Top high volume losers on BSE were Granules India Ltd. (307.50, -4.62%), Bata India Ltd. (1,658.10, -2.48%) and BASF India Ltd. (2,553.25, -1.37%).

Prince Pipes & Fittings Ltd. (709.00, 4.10%) was trading at 7.2 times of weekly average. KNR Constructions Ltd. (254.70, 4.79%) and TV18 Broadcast Ltd. (42.80, 6.34%) were trading with volumes 6.1 and 5.6 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

41 stocks overperformed with 52 week highs,

Stocks touching their year highs included - Abbott India Ltd. (23,919.10, 0.72%), Ashok Leyland Ltd. (187.85, 0.16%) and Aurobindo Pharma Ltd. (870.05, -1.05%).

17 stocks climbed above their 200 day SMA including KNR Constructions Ltd. (254.70, 4.79%) and Jindal Worldwide Ltd. (355.40, 4.75%). 5 stocks slipped below their 200 SMA including Granules India Ltd. (307.50, -4.62%) and Bandhan Bank Ltd. (229.05, -1.40%).

 
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The Baseline
09 Aug 2023, 06:19PM
Generational shift: Four trends are changing the face of the Indian consumer
By Tejas MD

In June this year, the US narrowly escaped a debt default, as its government made the deadline just in time to raise the debt ceiling. Now, the country's infamously high debt level (an eye-watering $32.7 trillion, 121.2% of its March 2023 GDP) is again in the news, after global rating agency Fitch downgraded the US credit rating to AA+ from AAA on August 2.

Fitch flagged concerns over the rising debt burden and the inability among American politicians to reach an agreement to bring down debt. 

This rating change had a ripple effect on global equity markets, reminding us that when the US sneezes, the world catches a cold.

But the effect of the downgrade is being felt far less in one country: India. Here, it's a temporary setback. Morgan Stanley just upgraded India’s rating to ‘Overweight’, and raised the country’s market position from sixth to first. The brokerage believes that the country is poised for sustained economic growth with a strong capex and profit outlook.

This upgrade comes just four months after Morgan Stanley raised India from ‘underweight’ to ‘equal weight’ on March 31. It marks how fat we have come - just a decade ago, Morgan Stanley had labelled India one of the 'Fragile Five' and 'risky' for foreign investments.

A key driver for this growth is a big shift in India’s income pyramid. India is projected to change in the next decade from a poor-dominant country to a middle-class dominant one.

Source: ICE360

Such transformation for a country happens only once in several generations. In Europe, this shift happened post World War-II in the 1950s and 1960s, when Europe's economies grew at 6-8% a year. The growth propelled some European businesses into worldwide fame - France's fashion labels, Germany's car makers, Italy's clothing companies went from regional, family-owned businesses to international brands: Chanel, Volkswagen, Gucci. The US saw similar income growth and disruption between 1955 and 1970.

For India, this change will bring many millions of Indians out of poverty, with more than 100 million people moving to middle-income households, and 20 million to rich households. This will lead to a rapid rise in consumption and spending.  India's consumers are changing fast.

The winners of this shift? Yet to be decided.

In this week’s Analyticks,

  • In the midst of change: India’s consumers are seeing four big trends
  • Deep pockets screener: Stocks with increasing annual operating cash flow, and operating profit margin

Four trends are changing the Indian consumer story 

The world is expected to add another billion consumers over the next eight years. The Data Lab defines this 'consumer' as those spending at least $12 per day (measured using 2017 purchasing power parity or PPP prices).

Even as the global consumer class grows, some countries will see a decline due to aging populations and lower fertility rates – a list that includes Japan and several European countries. From 2022 to 2030, Japan is expected to lose 4 million consumers, while Italy’s and Germany’s consumer population could shrink as well.

Asia is projected to contribute around 82% of new consumers in 2024, with India and China jointly accounting for over half of this increase. As China’s population ages, India will surpass it in new additions to the consumer class. Consequently, India is on track to becoming the leading global driver of consumer growth. Given this, we look at four key trends that are reshaping the Indian consumer story.

Trend 1: D2C and local brands are challenging FMCG giants

The Direct-to-Consumer (D2C) market in India is growing fast, and is expected to reach $100 billion by 2025. Several smaller and local players here are competing with the big guns. This ant vs elephant battle has seen some unexpected gains for small competitors, which are stealing market share from big FMCG companies.

Smaller players are doing this by disrupting the traditional distribution channels, and selling lower-priced products without any middleman. Karnataka's Teju Masala for instance, which started off selling spices from a moped in the local market, is growing at 65% annually; Delhi-based, Virat-Kohli backed RageCoffee is in 32 cities and claims to be growing at 3X in demand and production.

The rapid rise in online shoppers is helping D2C businesses. India gained125 million online shoppers in the past three years, with another 80 million projected to join by 2025. 

To counter this, FMCG majors like Nestle are now focussing on e-commerce sales. Suresh Narayanan, Nestle India's Chairman and Managing Director said, “E-commerce continues to perform strongly and accounts for almost 6.5% of sales in Q1FY24 with quick commerce driving the growth”. Meanwhile, Dabur is planning to acquire D2C companies to tap into this segment. In the Q1FY24 earnings call, Mohit Malhotra, CEO of Dabur said, “We are scouting for D2C brands. If we come across a company which is synergistic to us, we will evaluate and if it seems financially worthwhile, we will acquire the company.”

Listed FMCG majors also face competition from local brands. Volume growth for local brands (+12.7% YoY in FY23) outpaced national brands(+8.5% YoY in FY23).

During the Q1FY24 Earnings call, Hindustan Unilever's CFO Ritesh Tiwari agreed with the numbers, “Small players are growing faster than the large players - this is evident from the latest quarter’s data."

Trend 2: Rise of the ‘mass’ consumer class

A recent Redseer survey reveals the rise of a mass consumer class (annual income between Rs 2.5-10 lakh), besides the affluent (> Rs 10 lakh) and striver (< Rs 2.5 lakh) classes. 

The Indian retail industry is projected to grow at a CAGR of 10% to reach $2 trillion by 2030. Within this growth story, mass consumers are expected to contribute 65% to the overall retail market by 2030. This segment is also set to grow the fastest, with a CAGR of nearly 12%.

Nearly 60% of these mass consumers are willing to buy unbranded products, if they get the right value. The willingness to switch from big FMCG brands to smaller alternatives is pushing major FMCG companies to rethink their strategies. 

Trend 3: Rise of the nuclear family drives premium FMCG demand

One would assume that India’s joint families, which usually consist of around seven people, would spend more compared to nuclear families, which have an average of three people. But it’s the nuclear families that are shelling out more money each month,due to their preference for premium products. 

South India leads when it comes to the rise of nuclear families, with 69% of households classified as nuclear in 2022. However, in North India, joint families are still the majority.

Nuclear families make up 50% of Indian households in 2022, a big shift from a 34% share in 2008. This development bodes well for companies following the ‘premiumization’ trend.  

Trend 4: Tier 2 and 3 cities drive growth in consumer spends

According to reports, Tier II and III cities drove consumer purchases during the Diwali season, accounting for 64 per cent of all transactions. Almost 125 million customers placed orders across platforms during this period, with a significant boost from Tier II cities. 

In addition, rural demand is making a comeback, as inflation eased over the past two quarters.  

Sanjay Agarwal, CFO of Jyothi Labs said, “The impact of inflation in rural areas has been much higher than urban. And as inflation has been receding, growth that we are seeing in rural is coming back.”

With all these trends in play amid a fast-growing consumer class, major FMCG companies have some tough decisions to make. Big companies are typically slowwhen it comes to adapting to change, especially when competing with disruptive trends and new-age brands. 

However, this disruption is great for Indian consumers - it brings innovation to both sides of the income scale. As families shift towards nuclear structures, product premiumization gains traction; while the rise of the mass consumer class helps value-driven brands.

And as the consumer space sees more competition, a few homegrown Indian brands are likely to become truly big, mirroring the trends we saw in US and Europe half a century ago. 

Screener: Stocks with bumper cash in hand, with increasing cash flow and profit margins

Cash flow from operating activities is an important measure for a company - having surplus cash from operations allows it to invest in new projects, repay loans and launch new products. This screener shows stocks that have seen a YoY rise in their annual cash flow from operations and operating profit margin.

The screener has 38 stocks from the Nifty 500 and seven stocks from the Nifty 50 index. It is dominated by stocks from the automobile & auto components, banking and chemicals & petrochemicals sectors. Major stocks that appear in the screener are Chalet Hotels, Indian Hotels, ICICI Lombard General Insurance, Lupin, Fine Organic Industriesand Dr Reddy’s Laboratories.

Chalet Hotels and Indian Hotels lead this pack with a 19.9 and 17.7 percentage points YoY rise in operating profit margin in FY23, respectively. This improvement is compared to a low base in FY21 and FY22, due to the Covid lockdown. Chalet Hotels also saw its cash flow from operating activities improve to Rs 476.9 crore in FY23, compared to Rs 62.2 crore in FY22. The company has implemented cost management processes, resulting in reduced real estate development costs and higher cash flow from operating activities.

Indian Hotels saw its cash flow from operating activities jump to Rs 1,619 crore in FY23 from Rs 671.6 crore in FY22. This was on the back of what the company called a disciplined approach to capital allocation, which reduced provisions and finance costs.

ICICI Lombard General Insurance's cash flow also improved to Rs 2,290.1 crore in FY23from Rs 809.1 crore in FY22. It is the only stock in the screener which turned an operating loss in FY22 into an operating profit in FY23, with an operating profit margin of 7.1%. The insurance company’s rise in cash flow was aided by an increase in premiums and advanced premiums received from policyholders.

You can find some popular screeners here.

 
Trendlyne Marketwatch
Trendlyne Marketwatch
09 Aug 2023, 03:45PM
Market closes higher, Bharat Forge's Q1 net profit jumps 150% YoY to Rs 297.6 crore

Trendlyne Analysis

Nifty 50 closed at 19,632.55 (61.7, 0.3%), BSE Sensex closed at 65,995.81 (149.3, 0.2%) while the broader Nifty 500 closed at 17,003.85 (54.6, 0.3%). Of the 1,939 stocks traded today, 1,065 were gainers and 824 were losers.

Indian indices rebounded from their day lows and closed in the green on a volatile day of trade. The benchmark Nifty 50 index closed above the 19,600 mark. Bajaj Consumer Care closed 2.9% higher and touched a new 52-week high after its net profit rose 36.3% YoY to Rs 46.2 crore in Q1FY24. 

Nifty Smallcap 100 and Nifty Midcap 100 closed in the green, following the benchmark index. Nifty Metal and Nifty Media closed over 2% higher than their Tuesday’s close. According to Trendlyne's sector dashboard, Coal was the top-performing sector of the day. 

European indices traded in the green, despite the Asian indices closing mixed. US index futures traded higher, hinting at a positive start to the trading session after losses on Tuesday that were sparked by a downgrade of several regional banks by Moody's.

  • Relative strength index (RSI) indicates that stocks like Lupin, Indian Railway Finance Corp, Cipla and Gland Pharma are in the overbought zone.

  • Trent is rising as its Q1FY24 net profit rises 32.9% YoY to Rs 173.5 crore, while its revenue grows by 45.7% YoY to Rs 2,628.4 crore. However, its EBITDA margins contract by 219 bps YoY to 14% due to higher rent expenses, input costs and employee expenses. The stock shows up in a screener for companies with strong annual EPS growth.

  • Dr. Reddy's Laboratories and Dixon Technologies (India) touch their 52-week highs of Rs 5,880 and Rs 4,967.7 respectively. The former has risen 12.8% over the past month, while the latter increased by 15.8%.

  • Kalyan Jewellers India rises to an all-time high of Rs 189 as its Q1FY24 net profit increases by 33.2% YoY to Rs 143.5 crore. Its revenue also grows by 31.3% YoY, aided by the jewellery business. The company appears in a screener of stocks with improving book value per share.

  • Bajaj Consumer Care touches a new 52-week high of Rs 237.7 per share as its net profit grows by 36.3% YoY to Rs 46.2 crore in Q1FY24. Its revenue also improves by 8.3% YoY, aided by growth in the ADHO segment and increased sales in the international market. Its EBITDA margin expands by 311 bps YoY. The company appears in a screener of stocks with FIIs increasing their holding.

  • Bharat Forge is rising as its Q1FY24 net profit jumps by 150% YoY to Rs 297.6 crore and revenue grows by 40% YoY. Its EBITDA margin improves by 35 bps YoY to 15.35%. The company will also invest Rs 150 crore into its wholly owned subsidiary, Kalyani Powertrain. The stock shows up in a screener for companies with revenues increasing sequentially over the past three quarters.

  • Mutual Funds' net inflow surges MoM to Rs 82,046 crore in July, according to data released by the Association of Mutual Funds in India (AMFI). Equity inflow stands at Rs 7,626 crore during the same period.

  • Brigade Enterprises falls as its Q1FY24 net profit decreases by 56.1% YoY to Rs 38.5 crore. Its revenue drops by 25.5% YoY due to decline in the real estate segment. The company appears in a screener of stocks with declining net cash flow.

  • Healthcare equipment & supplies, telecommunications equipment and pharmaceuticals & biotechnologysectors rise more than 3% in the past week.

  • Banking stocks like ICICI Bank, HDFC Bank, Federal Bank and Bandhan Bank are falling in trade. All constituents of the broader BSE Bankex index are also trading in the red.

  • Sudarshan Chemicals rises to a new 52-week high of Rs 566.9 as its Q1FY24 net profit increases by 37.7X YoY to Rs 267 crore. This growth is to the sale of a freehold land in Pune for Rs 356 crore. Its revenue improves by 10.3% YoY, aided by the pigments industries. The company appears in a screener of stocks with strong momentum.

  • ICICI Securities upgrades its rating on GE T&D India to ‘Buy’ from ‘Hold’ and raises the target price to Rs 315 from Rs 200, implying an upside of 10.4%. The brokerage turns positive about the company’s prospects on the back of improving order intake and expanding margins. It expects the firm’s revenue to grow at a CAGR of 23.4% over FY23-25.

  • EIH rises as its Q1FY24 net profit increases by 65.2% YoY to Rs 103.8 crore. Its revenue grows by 26.7% YoY and its EBITDA margins improve by 7.5 percentage points YoY due to lower finance expenses. The company appears in a screener of stocks with improving RoA.

  • Dish TV India surges as Q1FY24 net profit rises by 15.1% to Rs 20.5 crore, despite an 18% fall in revenue. This profit growth is due to reduced finance costs and depreciation & amortisation expenses. The company appoints Manoj Dobhal as Chief Executive Officer, with effect from August 23, 2023.

  • According to a poll of economists, India's retail inflation is expected to have surged to 6.4% in July, surpassing RBI’s tolerance band of 2-6% for the first time in five months, due to rising food costs. Food prices, which constitute nearly half of the inflation basket, jumped due to erratic monsoons across the country.

  • ideaForge Technology is falling as its Q1FY24 net profit drops by 54.2% YoY to Rs 18.6 crore due to a sharp increase in inventory costs and employee expenses. Its revenue also declines by 2.2% YoY to Rs 97.1 crore. The stock shows up in a screener for companies with declining net cash flows.

  • Gensol Engineering rises in today's trade as it bags an order from Odisha Renewable Energy Development Agency (OREDA) for a 5-year operational lease worth Rs 115 crore for providing 300 electric cars. It appears in a screener for stocks with strong momentum.

  • ICICI Lombard General Insurance is falling as it receives a show cause notice (SCN) with a tax demand of Rs 273.4 crore from the Directorate General of GST Intelligence. The SCN relates to an industry-wide issue on the applicability of GST on salvage-adjusted and ineligible input tax credits for settled motor claims. In protest, the company has deposited Rs 104.1 crore without accepting any liabilities and plans to file a response.

  • Lupin touches 52-week high as it receives approval from the US FDA for its new drug application for Fluocinolone Acetonide Oil. It will be manufactured at Lupin’s Somerset facility in the US. The company appears in a screener for stocks with strong momentum.

  • Adani Wilmar falls sharply as reports suggest that Adani Enterprises may consider selling a 44% stake in the company. Following the sale, Gautam Adani and his family will likely keep a minority stake in their personal capacity.

  • Zydus Family Trust, promoter of Zydus Wellness, buys a 1% stake in the company on Tuesday. It now holds a 10.5% stake.

  • Oil India falls as its Q1FY24 net profit decreases by 50.9% YoY to Rs 1,426.6 crore. Its revenue drops by 56.5% YoY due to decline in crude oil, refinery products and liquified petroleum gas (LPG) segments. The company appears in a screener of stocks with declining quarterly net profit and margins.

  • Phoenix Mills is rising despite its net profit dropping by 66.5% YoY to Rs 240.5 crore. The sharp fall in profitability is due to a high base in Q1FY23 on the back of a one-time gain of Rs 556.8 crore. The firm’s revenue rises by 41.1% YoY, driven by healthy retail consumption. Its EBITDA margins also expand by 4.5 percentage points YoY to 60.7%.

  • Satish Pai, Managing Director of Hindalco, believes that costs will decline by 3% in Q2, with LME realisations around $2,100-2,300 per tonne. He also anticipates aluminium EBITDA per tonne to be around $700, and Novelis EBITDA to touch $525 per tonne by Q4 or earlier.

  • Siemens falls despite its Q1FY24 net profit rising 51.5% YoY to Rs 455.5 crore. Its revenue improves by 15.4% YoY, aided by the smart infrastructure, mobility and digital industries. The company appears in a screener of stocks with high TTM EPS growth.

  • SBI Life Insurance Co is rising after announcing the appointment of Amit Jhingran as Managing Director and CEO of the company. The firm shows up in a screener for stocks with strong momentum.

  • Coal India’s Q1FY24 net profit declines by 9.8% YoY to Rs 7,971 crore due to higher employee costs and contractual expenses. However, its revenue rises by 2.5% YoY on the back of increased sales volumes. The company shows up in a screener for stocks in the PE buy zone, with high durability scores and rising momentum scores.

Riding High:

Largecap and midcap gainers today include JSW Energy Ltd. (314.25, 8.05%), Aditya Birla Fashion and Retail Ltd. (216.10, 7.03%) and Bharat Forge Ltd. (963.10, 6.33%).

Downers:

Largecap and midcap losers today include Adani Wilmar Ltd. (378.15, -3.77%), Bata India Ltd. (1,700.30, -3.17%) and Divi's Laboratories Ltd. (3,737.70, -2.83%).

Movers and Shakers

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

Top high volume gainers on BSE included V-Guard Industries Ltd. (315.35, 10.30%), JSW Energy Ltd. (314.25, 8.05%) and Shyam Metalics and Energy Ltd. (450.90, 7.08%).

Top high volume losers on BSE were Brigade Enterprises Ltd. (565.95, -3.82%), Adani Wilmar Ltd. (378.15, -3.77%) and Medplus Health Services Ltd. (895.70, -1.48%).

Shoppers Stop Ltd. (805.25, -0.04%) was trading at 16.2 times of weekly average. Latent View Analytics Ltd. (401.25, 5.61%) and Data Patterns (India) Ltd. (2,112.30, 3.99%) were trading with volumes 11.0 and 9.9 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

43 stocks hit their 52-week highs,

Stocks touching their year highs included - AIA Engineering Ltd. (3598.00, 1.04%), Ashok Leyland Ltd. (187.55, 2.10%) and Aurobindo Pharma Ltd. (879.25, 1.32%).

13 stocks climbed above their 200 day SMA including Mas Financial Services Ltd. (811.85, 6.37%) and Voltas Ltd. (849.45, 4.09%). 7 stocks slipped below their 200 SMA including Indiabulls Real Estate Ltd. (67.15, -1.61%) and HLE Glasscoat Ltd. (590.00, -1.53%).

 
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The Baseline
08 Aug 2023, 04:42PM
Five analyst picks that outperformed their industry over the past month
By Suhas Reddy

This week we take a look at five analyst picks that outperformed their industry in the past month:

  1. Birlasoft: HDFC Securities initiates a ‘Buy’ call on this IT consulting and software company with a target price of Rs 530, indicating an upside of 17.4%. In Q1FY24, the company’s net profit increased by 22.6% QoQ to Rs 137.5 crore, while revenue grew by 4.3% QoQ. The company’s stock price has improved by 27.3% in the past month, outperforming its industry by 23.2%.

Analysts Apurva Prasad, Amit Chandra and Vinesh Vala initiate this call on the back of large client mining and high deal win momentum. Birlasoft’s revenue per client has increased by 70% over the past three years. Based on the brokerage’s mid-tier IT assessment, the analysts say, “Birlasoft features above the peer median in its services portfolio, above the median in financials and valuation, and below the median in execution and growth framework.” Overall they believe it is well-positioned within mid-tier peers. They also remain optimistic due to the strong momentum in Oracle and SAP Cloud services. They expect a revenue CAGR of 10% over FY24-26.

  1. Hindalco Industries: Axis Direct upgrades this aluminium products manufacturer to a ‘Buy’ with a target price of Rs 515. This indicates an upside of 13.2%. The company’s Q1FY24 net profit fell by 40.4% YoY to Rs 2,454 crore, while its revenue declined by 8.7% YoY. The company has risen by 7.6% in the past month, outperforming its industry by 8.7%. The upgrade comes after the announcement of Q1 results for the company’s arm, Novelis. 

Novelis’ shipments have declined by 9% YoY due to destocking, but analyst Aditya Welekar believes that this trend will gradually improve over FY24. The Novelis arm's profit and adjusted EBITDA fell by 49% YoY and 25% respectively, but they were still higher than the brokerage’s estimates. 

Welekar remains optimistic about the company on the back of macro headwinds bottoming out as rate hikes near their peak. He says, “We foresee more shipment visibility in the short and long term, and lower raw material costs. The lower Aluminium prices resulting from supply exceeding demand in China and the drop in thermal coal prices create a higher upside for the stock.” 

  1. Star Cement: ICICI Direct keeps its ‘Buy’ rating on this cement manufacturer with a target price of Rs 185, indicating an upside of 13.3%. The stock has risen by 9.8% in the past month, outperforming its industry by 6.9%. 

Analysts Cheragh Sidhwa and Raghvendra Goyal are optimistic about the company’s plans to gain market share by doubling its production capacity by FY26. They add, “Post the expansion, the company's overall clinker and cement capacity will increase to 5.8 MT and 9.7 MT, respectively, by FY25.” They believe the firm’s healthy operating cash flows will aid in meeting its capex requirements for capacity expansion, thus keeping its debt levels low. 

The analysts note that the firm is well-placed to benefit from the Centre’s initiatives to boost infrastructure development in the North-Eastern region, as it already holds a 25% market share. They expect the company’s net profit to grow at a CAGR of 17.2% over FY23-25. 

  1. L&T Technology Services: Motilal Oswal maintains its ‘Buy’ rating on this IT consulting & software company with a target price of Rs 4,760, implying an upside of 11.3%. The stock has risen by 8.5% over the past month, outperforming its industry by 4.4%. In Q1FY24, its net profit increased by 0.5% QoQ to Rs 311.1 crore and revenue grew by 22.8% QoQ. 

Analysts Mukul Garg, Pritesh Thakkar and Raj Prakash Bhanushali highlight the company's unique positioning in the engineering, research and development (ER&D) sector. Unlike its competitors, L&T Technology Services operates across multiple verticals, enabling it to draw opportunities from various industries. They add, “The firm uses its presence in multiple verticals, strong domain knowledge and technology capabilities to provide differentiated offerings across its client base.”

The analysts believe that digitisation is accelerating spending towards ER&D and expect the firm to capitalise on this, given its strong capabilities and market presence. They estimate the company’s revenue to grow at a CAGR of 18.8% over CY23-25. 

  1. Metro Brands: ICICI Securities maintains its 'Buy' rating on this footwear company with a target price of Rs 1,200, implying an upside of 11.9%. The analysts at ICICI Securities hold a positive outlook, supported by the company’s record growth among its peers. It has a retail expansion rate of 27% YoY. In Q1FY24, the company's revenue increased by 14.7% YoY to Rs 582.5 crore, while net profit improved  by 35.5% QoQ. The stock has risen by 5.8% over the past month, outperforming its industry by 3%.

The analysts express confidence in the ongoing integration of Metro’s Cravatex brands, projecting a 3% revenue contribution with minimal impact on net profit margins. Additionally, they see a resolution of its inventory issues by the end of FY24. A key highlight is the strong performance of the premium segment ( the Rs 3,000+ price point), which has exhibited a 31% YoY outperformance over the value range. This adds momentum to brand value growth. Outperformance in the women's and kids' wear segments has also sustained.

Despite negative same-store sales growth, the analysts expect momentum to improve from the addition of 27 new stores in Q1FY24 and the potential for further expansion.

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

(You can find all analyst picks here)

 
Trendlyne Marketwatch
Trendlyne Marketwatch
08 Aug 2023, 03:45PM
Market closes flat, Axis Direct downgrades rating on KEC International to ‘Hold’ from ‘Buy’

Trendlyne Analysis

Nifty 50 closed at 19,570.85 (-26.5, -0.1%) , BSE Sensex closed at 65,846.50 (-107.0, -0.2%) while the broader Nifty 500 closed at 16,949.25 (-7.1, 0.0%). Of the 1,938 stocks traded today, 915 were on the uptick, and 962 were down.

Indian indices extend the losses from the morning session and close in the red, with the Nifty 50 closing at 19,571. The volatility index, Nifty VIX, rose by 2.1% and closed at 11.3 points. Gland Pharma’s Q1FY24 net profit contracts by 15.3% YoY to Rs 194 crore against the consensus estimates of Rs 177 crore.

Nifty Smallcap 100 and Nifty Midcap 100 closed in the green with the benchmark index closing in the red. Nifty PSU Bank and Nifty Media closed higher than Monday’s closing levels. According to Trendlyne’s sector dashboard, media emerged as the top-performing sector of the day, with a rise of over 1%.

Most European indices trade in the red. US indices futures trade lower, indicating a negative start. The data released by the German Statistical Office indicated July CPI cooled down to 6.2% against 6.4% in June.

  • Money flow index (MFI) indicates that stocks like Eris Lifesciences, FDC, KSB, Lupin and Poly Medicure are in the overbought zone.

  • Hero MotoCorp (in partnership with Harley-Davidson) halts booking after receiving 25,597 orders for its top-end X440 variant due to overwhelming demand. This indicates that Hero MotoCorp will likely eat into Royal Enfield's massive market share. Similar to Harley-Davidson, Triumph has partnered with Bajaj Auto to compete against Eicher Motors' Royal Enfield.

  • Adani Ports is falling despite its net profit growing by 82.6% YoY to Rs 2,114.7 crore in Q1FY24. Revenue improves by 24% YoY, aided by the port and SEZ activities segment. Its EBITDA margin also expands by 19 percentage points YoY on the back of foreign exchange gains earned this quarter, compared to a loss in Q1FY23. The company appears in a screener of stocks with decreasing promoter pledge.

  • Axis Direct downgrades its rating on KEC International to ‘Hold’ from ‘Buy’ but raises the target price to Rs 645 from Rs 570, implying an upside of 1.6%. The brokerage believes there is limited upside in the stock. However, it expects the company’s well-diversified order book to drive revenue growth in the coming quarters.

  • Tata Power Company rises as it signs an MoU with the Government of Maharashtra to develop 2,800 MW pumped hydro storage projects, with a proposed total investment of approximately Rs 13,000 crore. The aim is to support the clean energy landscape of Maharashtra and the country.

  • Concord Biotech's Rs 1,550 crore IPO gets bids for 24.86X the available 1.5 crore shares on offer on the last day of bidding. The retail investor quota gets bids for 3.87X of the available 73.2 lakh shares on offer.

  • Max Healthcare Institute falls despite its Q1FY24 net profit rising by 38.9% YoY to Rs 240.1 crore. Its revenue grows by 20.8% YoY due to the growth in average revenue per bed and occupied bed days. The company appears in a screener of stocks with strong annual EPS growth.

  • BofA Securities raises its Nifty 50 target for December 2023 to 20,500 from the earlier estimate of 18,000 as it anticipates the US to avoid recession. The revision is also supported by factors such as healthy domestic inflows and mostly positive Nifty returns.

  • GAIL rises in trade today as Custom Commissioner (Appeals), Pune, revokes the entire demand of Rs 934 crore, including penalty and interest, which was imposed on the firm on March 29, 2023. It appears on a screener for stocks with strong momentum.

  • ITD Cementation rises to an all-time high of Rs 199 as its Q1FY24 net profit grows by 73.7% YoY to Rs 52.2 crore. Its revenue increases by 66.4% YoY due to robust growth in the construction segment. The company appears in a screener of stocks with increasing quarterly revenue.

  • Hindalco Industries is falling as its Q1FY24 net profit falls 40.4% YoY to Rs 2,454 crore, while its revenue declines by 8.7% YoY due to subdued volumes. Revenue from its Novelis and aluminium business division falls on a YoY basis. Its EBITDA margins also contract by 375 bps YoY to 10.8%.

  • Hero MotoCorp rises as it receives 25,597 bookings for the Harley-Davidson X440 since the opening of the booking window on July 4. The company appears in a screener of stocks with high TTM EPS growth.

  • Mindspace Business Parks REIT appoints Ramesh Nair as the Chief Executive Officer (CEO) of the company, effective from September 1. As a result, the company elevates Vinod Rohira from his role as CEO to Board Member.

  • Maruti Suzuki rises as its board approves the acquisition of a 100% stake in Suzuki Motors Gujarat. The company appears in a screener of stocks with low debt.

  • Krishna Institute of Medical Sciences is falling despite its Q1FY24 net profit rising by 15.2% YoY to Rs 80.8 crore .Revenue increases by 21.6% YoY, led by robust growth from Telangana. It appears in a screener of stocks with high volume and are top losers.

  • Ramesh Kancharla, CMD of Rainbow Children’s Medicare, says, Q1 is seasonally a weaker quarter. He adds that the company aims to increase the occupancy rate above 50%. He expects the ARPOB (average revenue per occupied bed) to improve YoY in FY24. The firm’s net profit has dropped by 23.5% QoQ, while revenue fell 10.3% QoQ in Q1FY24.

  • PB Fintech plunges more than 5% as its net loss expands by 27.5% QoQ to Rs 11.4 crore in Q1FY24. Its revenue declines by 23.4% QoQ due to reduced revenue from the services segment. The company appears in a screener of stocks with low Piotroski scores.

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

  • Tata Chemicals is falling as its Q1FY24 net profit declines 9.7% YoY to Rs 532 crore due to higher employee costs, power costs and freight charges. Its revenue increases 5.6% YoY led by growth in the basic chemistry products segment. The stock shows up in a screener for companies with strong annual EPS growth.

  • Railtel touches a new 52-week high today as it bags an order worth Rs 700 crore for 10 years from Pimpri Chinchwad Smart City to provide end-to-end services for the monetization of PCSCL City Network Infrastructure on a revenue-sharing model. It appears in a screener for stocks with strong momentum.

  • Hemant Jalan, CMD of Indigo Paints, says the company’s growth is outpacing the industry due to its focus on larger cities. He adds that it targets to double its revenue over the next 2-3 years, expanding at a CAGR of 30%. He anticipates the firm’s market share to improve further from the current 2.5%.

  • Porinju Veliyath buys a 0.6% stake in Gati for nearly Rs 12.5 crore in a bulk deal on Monday.

  • Gland Pharma rises despite its Q1FY24 net profit falling by 15.3% YoY to Rs 194.1 crore. However its revenue increases by 33.8% YoY, aided by robust growth in Europe and India. The company appears in a screener of stocks with declining quarterly net profit and margins.

  • Genus Power Infrastructures is rising as it receives a letter of award worth Rs 2,209.8 crore for the design, supply and installation of 21.77 lakh smart prepaid meters. Post this order, the company’s order book currently stands at Rs 8,200 crore.

  • Morgan Stanley maintains its ‘Overweight’ rating on Britannia Industries but lowers the target price to Rs 5,013. The brokerage highlights that the company’s volume growth was a miss during the quarter. Britannia’s net profit has grown by 32.4%, while revenue increased by 8.4% in Q1FY24.

  • BEML rises to an all-time high of Rs 2,134.5 as it bags a new order worth Rs 3,177 crore from Bangalore Metro Rail Corp. The order involves the designing, manufacturing, supplying, installing, testing, and commissioning of 318 standard gauge metro cars. The company appears in a screener of stocks with improving RoA.

  • Sobha falls as its Q1FY24 net profit decreases by 12% YoY to Rs 12.1 crore due to higher inventory expenses. However, its revenue rises by 57.8% YoY, aided by robust growth in the real estate segment. The company appears in a screener of stocks with declining net profit and margins.

  • Godrej Consumer Products’ Q1FY24 net profit falls by 7.6% YoY to Rs 318.8 crore despite its EBITDA margins expanding by 190 bps YoY to 18.6%. The profitability drop is due to a one-time expense of Rs 81.8 crore from the acquisition of Raymond Consumer Care Business and other restructuring costs. Its revenue increases by 10.4% YoY, driven by healthy growth across domestic and international business segments.

Riding High:

Largecap and midcap gainers today include Gland Pharma Ltd. (1,611.05, 20.00%), Indian Bank (392.65, 13.12%) and Bayer Cropscience Ltd. (4,827.30, 5.11%).

Downers:

Largecap and midcap losers today include PB Fintech Ltd. (760.15, -4.76%), Zomato Ltd. (93.45, -4.25%) and Max Healthcare Institute Ltd. (559.50, -4.09%).

Crowd Puller Stocks

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

Top high volume gainers on BSE included Gland Pharma Ltd. (1,611.05, 20.00%), Indian Bank (392.65, 13.12%) and Angel One Ltd. (1,701.00, 12.36%).

Top high volume losers on BSE were HLE Glasscoat Ltd. (599.15, -6.50%), Medplus Health Services Ltd. (909.20, -4.42%) and Borosil Renewables Ltd. (480.40, -4.25%).

Krishna Institute of Medical Sciences Ltd. (1,831.00, -1.36%) was trading at 11.5 times of weekly average. Bayer Cropscience Ltd. (4,827.30, 5.11%) and Sunteck Realty Ltd. (390.50, 5.46%) were trading with volumes 9.4 and 8.8 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

38 stocks took off, crossing 52 week highs,

Stocks touching their year highs included - Alembic Pharmaceuticals Ltd. (790.00, -0.42%), Aurobindo Pharma Ltd. (867.80, -0.05%) and Bank of Maharashtra (36.25, 7.09%).

8 stocks climbed above their 200 day SMA including Gland Pharma Ltd. (1,611.05, 20.00%) and VIP Industries Ltd. (659.00, 5.59%). 10 stocks slipped below their 200 SMA including HLE Glasscoat Ltd. (599.15, -6.50%) and Rain Industries Ltd. (156.15, -3.34%).

 
Trendlyne Marketwatch
Trendlyne Marketwatch
07 Aug 2023
Market closes higher, India Cements posts a net loss of Rs 87.4 crore in Q1FY24

Trendlyne Analysis

Nifty 50 closed at 19,597.30 (80.3, 0.4%), BSE Sensex closed at 65,953.48 (232.2, 0.4%) while the broader Nifty 500 closed at 16,956.35 (65.8, 0.4%). Market breadth is in the green. Of the 1,965 stocks traded today, 1,056 were on the uptick, and 870 were down.

Indian indices closed in the green, with the Nifty 50 settling just below the 19,600 mark. The Indian volatility index, Nifty VIX, rose sharply by over 5%. Emami closed 2.2% higher after its Q1FY24 net profit rose by 86.5% YoY to Rs 137.7 crore, while its gross margins expanded by 240 bps YoY to 64.5%, led by an easing of raw material prices.

Nifty Midcap 100 and Nifty Smallcap 100 closed in the green, following the benchmark index. Nifty Pharma and Nifty Realty closed higher than Friday’s levels.  According to Trendlyne's sector dashboard, Healthcare Equipment & Supplies was the top-performing sector of the day. 

Major European indices traded in the red, amid mixed global cues. Asian stocks closed mixed, while the US index futures traded in the green, indicating a positive start to the session. Brent crude oil futures traded lower after gaining around 3.2% in the last two trading sessions.

  • Relative strength index (RSI) indicates that stocks like Lupin, Indian Railway Finance Corp, Cipla and BSE are in the overbought zone.

  • Balmer Lawrie & Company and Alkem Laboratories touch their 52-week highs of Rs 157.8 and Rs 4,168.7 respectively. The former has risen 13.8% over the past month, while the latter increased by 17.8%.

  • Whirlpool of India is falling as its net profit declines by 10.6% YoY to Rs 74.9 crore in Q1FY24. Revenue falls by 2% YoY to Rs 2,038.6 crore. Its EBITDA margin also drops by 28 bps YoY due to increased employee benefits and finance costs. The company appears in a screener of stocks with declining revenue and net profit YoY.

  • Gujarat Narmada Valley Fertilizers & Chemicals is falling as its Q1FY24 net profit declines by 84.6% YoY to Rs 88 crore, while its EBITDA margin contracts by 21.9 percentage points YoY to 6.4%. Revenue also falls by 38.7% YoY led by a strong decline across its business segments. The stock shows up in a screener for companies with declining net cash flows.

  • According to a poll of economists, RBI’s monetary policy committee (MPC) is expected to keep interest rates and policy stance unchanged at its meeting this week. They anticipate India's CPI inflation to rise to 6% in July.

  • Emami is rising as its Q1FY24 net profit surges by 86.5% YoY to Rs 137.7 crore, while its gross margins expand by 240 bps YoY to 64.5%, led by an easing of raw material prices. Its revenue rises by 6.8% YoY, driven by healthy growth in both domestic and international businesses. The company shows up in a screener for stocks in the PE buy zone with high durability scores and rising momentum scores.

  • SBFC Finance's Rs 1,025 crore IPO gets bids for 70.16X the available 13.4 crore shares on offer on the third day of bidding. The retail investor quota gets bids for 10.99X of the available 6.6 crore shares on offer.

  • Concord Biotech's Rs 1,550 crore IPO gets bids for 2.26X the available 1.5 lakh shares on offer on the second day of bidding. The retail investor quota gets bids for 2.72X of the available 73.2 lakh shares on offer.

  • Eris Lifesciences is rising despite its net profit staying flat at Rs 94.8 crore in Q1FY24. Revenue grows by 17.1% YoY, helped by improved sales in branded formulations, anti-diabetic and cardiovascular franchises. It appears in a screener of stocks with increasing cash flow from operations over the past two years.

  • ICICI Securities downgrades Alembic Pharmaceuticals from 'Hold' to 'Reduce' but raises the target price to Rs 705 from Rs 590, implying a 10.9% downside. Despite high valuation concerns, the brokerage foresees improved overall profitability due to lower depreciation expenses and increased research & development spending. It estimates a 32.6% CAGR in net profit for FY23-25.

  • Fortis Healthcare falls as its Q1FY24 net profit declines by 8.6% YoY to Rs 111.8 crore due to a rise in medical consumable and drug expenses. However, revenue increases by 10.4% YoY. It appears in a screener of stocks with high volume and are top losers.

  • India Cements is falling as it posts a net loss of Rs 87.4 crore in Q1FY24, compared to a net profit of Rs 80 crore in Q1FY23, on the back of rising raw material costs. Its revenue declines by 5.1% YoY to Rs 1,436.7 crore. It shows up in a screener of stocks with the highest increase in promoter pledges.

  • Coromandel International is rising as its arm, Dhaksha Unmanned Systems, bags an order worth Rs 165 crore for the supply of 200 drones to the Indian Army. The stock shows up in a screener for companies with book value per share improving over the past two years.

  • Chander Agarwal, MD of TCI Express, says Q1 tends to be a soft quarter for the company. He adds that it has taken a price hike during the quarter and anticipates revenue growth of 13–14% and EBITDA growth of 20% in FY24.

  • Telecom stocks like HFCL, ITI and Tejas Networks are seeing an increase of more than 4% in trade. The broader S&P BSE Telecom index is also trading more than 2% higher.

  • Navin Fluorine International falls more than 3%, following a directive from the Gujarat Pollution Control Board to halt operations at their industrial plant of NFASL in GIDC Dahej. The board has also asked the firm to pay Environment Damage Compensation of Rs 1 crore. The company appears in a screener of stocks with weak momentum.

  • Aditya Birla Fashion & Retail is falling as it posts a net loss of Rs 141.4 crore in Q1FY24, compared to a net profit of Rs 97.5 crore in Q1FY23. Its revenue grows by 11.2% YoY but EBITDA margin contracts by 6.4 percentage points YoY to 11% due to weak demand, high-cotton prices and higher investments into its subsidiaries.

  • Bharat Heavy Electricals is falling as its net loss expands by 83.3% YoY to Rs 351.7 crore in Q1FY24 due to an increase in employee benefits and raw materials expenses. However, revenue grows by 7.1% YoY, aided by the power and industry segments. The company appears in a screener of stocks in the sell zone.

  • C.E. Info Systems rises and hits a 52-week high as its Q1FY24 net profit increases by 15% QoQ to Rs 32.2 crore, while revenue improves by 17.8% QoQ. EBITDA also grows 25.2% YoY to Rs 37.4 crore. The company features in screener for stocks with low debt.

  • Retail sales for the automotive industry rise 10% YoY to 17.7 lakh units in July, shows data from the Federation of Automotive Dealers' Association. Two-wheeler retail sales are up 8.2% YoY, while cars increase by 4% YoY.

  • Yatharth Hospital & Trauma Care Services' shares debut on the bourses at a 2% premium to the issue price of Rs 300. The Rs 685.5 crore IPO has received bids for 36.2 times the total shares on offer.

  • Zen Technologies surges and hits an all-time high of Rs 674.85 as its Q1FY24 profit rises by 531.5% YoY to Rs 47.1 crore, while revenue increases by Rs 244.4 crore. Ashok Atluri, Chairman and MD of the company, says, "This strong performance in the quarter was driven by the successful execution of a significant part of the simulation export and domestic anti-drone orders."

  • Morgan Stanley downgrades its rating on Delhivery to ‘Equal-weight’ but raises the target price to Rs 460. The brokerage anticipates incremental margins to normalize eventually and revenue CAGR to be sustained at 18-20% in the future.

  • One97 Communications (Paytm) surges as Managing Director and Chief Executive Officer Vijay Shekhar Sharma buys a 10.3% stake in the company from Antfin (Netherlands) Holdings BV. He now holds 19.4%, making him the largest stakeholder in the company.

  • Porinju Veliyath buys a 1% stake in P G Foils for approx Rs 2.9 crore in a bulk deal on Friday.

  • Britannia Industries' Q1FY24 net profit grows by 32.4% YoY to Rs 457.1 crore. Revenue improves by 8.4% YoY, aided by a strong distribution network and sales growth. Its EBITDA margin expands by 370 bps YoY, owing to a drop in inflation. The company features in a screener of stocks where FIIs are increasing their holdings QoQ.

Riding High:

Largecap and midcap gainers today include Indian Railway Finance Corporation Ltd. (49.75, 10.43%), Max Healthcare Institute Ltd. (583.35, 8.37%) and One97 Communications Ltd. (850.70, 6.79%).

Downers:

Largecap and midcap losers today include Aditya Birla Fashion and Retail Ltd. (199.45, -4.93%), Adani Green Energy Ltd. (965.90, -4.61%) and Balkrishna Industries Ltd. (2,370.35, -4.52%).

Crowd Puller Stocks

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

Top high volume gainers on BSE included Poly Medicure Ltd. (1,455.35, 14.47%), HFCL Ltd. (73.15, 11.76%) and ITI Ltd. (119.90, 8.80%).

Top high volume losers on BSE were Gujarat Ambuja Exports Ltd. (238.65, -6.80%), Aditya Birla Fashion and Retail Ltd. (199.45, -4.93%) and Adani Green Energy Ltd. (965.90, -4.61%).

Sanofi India Ltd. (7,339.85, 5.15%) was trading at 10.0 times of weekly average. Zydus Wellness Ltd. (1,464.45, 2.36%) and Sterlite Technologies Ltd. (158.30, 4.35%) were trading with volumes 6.6 and 5.9 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

38 stocks took off, crossing 52 week highs, while 2 stocks hit their 52 week lows.

Stocks touching their year highs included - Alembic Pharmaceuticals Ltd. (793.30, 1.65%), Aurobindo Pharma Ltd. (868.25, 3.17%) and Zydus Lifesciences Ltd. (655.20, 0.84%).

Stocks making new 52 weeks lows included - Rajesh Exports Ltd. (516.75, 1.52%) and Vedanta Ltd. (237.95, -3.68%).

8 stocks climbed above their 200 day SMA including HFCL Ltd. (73.15, 11.76%) and Swan Energy Ltd. (254.50, 4.28%). 5 stocks slipped below their 200 SMA including Gujarat Ambuja Exports Ltd. (238.65, -6.80%) and Gujarat Narmada Valley Fertilizers & Chemicals Ltd. (559.70, -4.45%).

 
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The Baseline
05 Aug 2023
Which stocks did superstar investors buy in Q1FY24?
By Abhiraj Panchal

Superstar investors and their portfolio changes give us useful insights into financial markets, and help in identifying interesting, potentially under-the-radar stocks. In this analysis, we take a look at some of the biggest investments made by superstar investors during Q1FY24.

Each superstar has their own investing preferences, as seen in the chart below. It shows the sectors that hold the largest share of each investor’s portfolio. 

Rare Enterprises (Rakesh Jhunjhunwala) has a clear preference for textiles, apparels and accessories stocks, while Sunil Singhania favours software and services. Ashish Kacholia and Mohnish Pabrai lean towards chemicals and petrochemicals. Vijay Kedia’s favoured sector is telecom services, while Porinju’s preference lies in diversified consumer services. Dolly Khanna skews towards oil and gas.

Rare Enterprises (Rakesh Jhunjhunwala) makes no new additions to its portfolio

Rakesh Jhunjhunwala’s portfolio grew by 21.6% QoQ to Rs 38,885.3 crore in Q1FY24. Since the big bull’s passing, the portfolio has been managed by his wife, Rekha Jhunjhunwala and  Rare Enterprises, which is currently headed by Utpal Sheth and Amit Goela. 

The investment firm made very few purchases in the quarter, and increased its stake in only three companies. Also, there were no new stock additions to the portfolio in the April-June quarter. 

The portfolio raised its stake in Escorts Kubota by 0.2% to 1.6%. The commercial vehicles manufacturing giant rose by 20.1% in Q1FY24. 

Rare Enterprises also raised its stakes in two Tata Group companies. It added an additional 0.1% stake in Titan and a 0.5% stake in Tata Communications, increasing its total holdings to 5.4% and 1.84% respectively. During Q1FY24, Titan rose by 20.1% and Tata Communications gained 27.8%. 

Ashish Kacholia adds three new stocks to his portfolio

Ashish Kacholia’s net worth rose by 22.4% QoQ to Rs 2028.4 crore in Q1FY24. He added Venus Pipes & Tubes to his portfolio, buying a 2% stake in the steel pipes manufacturer. He also added finance companies Ugro Capital and SG Finserve by purchasing 1.6% and 1.2% stakes in them, respectively.

The marquee investor bought a 0.9% stake in Aditya Vision, a specialty retailer, and now holds 2% of the company. He purchased a 0.3% stake in Knowledge Marine & Engineering Works (a marine port and services provider), increasing his holding to 2.8%. He increased his stake in chemical companies Yasho Industries and Agarwal Industrial Corp to 4.2% and 3.9% respectively by buying 0.2% and 0.1% stakes.

Kacholia bought minor stakes and increased his holdings in Beta Drugs and Fineotex Chemical to 12.5% and 2.8%, respectively.

Sunil Singhania’s Abakkus Fund makes minor portfolio adjustments

Sunil Singhania’s Abakkus Fund’s net worth fell by 2.3% QoQ to Rs 2115.6 crore in Q1FY24. It made minor changes to the portfolio, with selective purchases and additions. It purchased a 0.1% stake in Dynamatic Technologies, taking the holding up to 2.9%. The industrial machinery company’s stock price grew by 43.3% in the past quarter. It also bought a 0.1% stake in HIL, a cement products manufacturer, and now holds a 3.2% stake in the company.

Abakkus also purchased minor stakes in IIFL Securities (capital markets company), ADF Foods (packaged foods player) and Sarda Energy & Minerals (steel manufacturer). It now holds 3.2%, 1.5% and 2.2% stakes in the companies, respectively.

Dolly Khanna increases holdings in nine companies

Dolly Khanna’s portfolio grew by 37.1% QoQ to 308.9 crore in Q1FY24. After a few consecutive quarters of conservative purchases, the superstar investor is back on a buying spree. She increased her stakes in nine companies during Q1. The superstar investor’s purchases were spread across various sectors and industries such as metals and mining, textiles, auto parts and equipment, plastic products, fertilizers, and breweries and distilleries. 

The ace investor raised her stake in the other non-ferrous metals company, Pondy Oxides & Chemicals, by 0.6% to 3.7%. She added another 0.5% stake each in Deepak Spinners and Talbros Automotive Components, taking her holdings to 1.7% and 1.5% respectively. 

Khanna increased her holding in Monte Carlo Fashions by 0.3% to 2.4%. She also raised her holdings in Control Print, Mangalore Chemicals & Fertilizers and Prakash Pipes by 0.1% to 1.2%, 1.3% and 2.8% respectively. The superstar investor purchased minor stakes in Nitin Spinners and Som Distilleries & Breweries, taking her holdings to 1.4% and 1.3% respectively.

Porinju Veliyath diversifies portfolio with two new companies 

Porinju V Veliyath’s net worth grew by 9.7% QoQ to Rs 151.3 crore in Q1FY24. He added two new companies, Centum Electronics (an electronic components manufacturer) and Kokuyo Camlin (stationary products and art materials company), to his portfolio by purchasing a 1% stake in each of them. 

The ace investor also increased his stake in four companies in Q1. He raised his stake in Aurum Proptech by 1.4% to 3.4% and Kerala Ayurveda by 1.3% to 3.2%. He added a 0.2% stake in Duroply Industries, taking his holding to 7%. The superstar investor also added a minor stake in Kaya, taking his holding to 3%. 

Vijay Kedia almost doubles his stake in a small-cap company

Vijay Kedia’s net worth increased by 65.3% QoQ to Rs 984.9 crore in Q1FY24. He bought a 6.5% stake in Atul Auto and now holds a 14.9% stake in the auto components manufacturer. The investor bought a 0.4% stake in Patel Engineering during the quarter and now holds 1.7% of the company. 

Kedia also bought a 0.1% stake in Precision Camshafts (auto components) and Neuland Laboratories (pharma) each. He now holds 1.2% and 1.3% in them respectively. 

Mohnish Pabrai increases stake in Edelweiss for third consecutive quarter 

Mohnish Pabrai’s net worth in Q1FY24 marginally increased by 3.1% QoQ to Rs 1086.41 crore. He increased his stake in Edelweiss Financial Services for the third consecutive quarter and bought an additional 0.6% stake in the company. Except for this financial services company, he made no changes to the portfolio.

 
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The Baseline
04 Aug 2023
Five Interesting Stocks Today
  1. Escorts Kubota: This commercial vehicles stock rose by 1.4% intraday after posting a 106.1% YoY growth in net profit, reaching Rs 289.3 crore for Q1FY24 on Tuesday. Its revenue has also improved by 15.9% YoY to Rs 2,355.7 crore, owing to increased sales in the agri machinery, construction and railway segments. This helped the company feature in a screener of stocks with improving net profit for the past three consecutive quarters. Notably, both net profit and revenue also beat Trendlyne’s Forecaster estimates by 33.3% and 7%, respectively. 

This increase in net profit is on the back of a reduction in the cost of stock in trade and a 1-2% price hike across all models and variations implemented in November 2022. Commenting on its near-term performance, Nikhil Nanda, the Chairman and Managing Director said, “With further advancement of monsoon, adequate reservoir levels, better liquidity and consumer credit availability, we expect demand to improve. The construction segment is also poised for growth, owing to government incentives and a focus on faster execution of infrastructure projects.”

Post results, Motilal Oswal maintains its ‘Neutral’ rating on the stock, with an upgraded target price of Rs 2,450 per share. This suggests a potential downside of 4.9%. The brokerage believes that the company’s near-term demand outlook is positive, led by healthy monsoon conditions and lower channel inventory. However, it warns of headwinds the company will face, like the impact of the high base of FY23 and reducing subsidies by state governments. The brokerage expects the company’s revenue to grow at a CAGR of 7.9% over FY23-25.

  1. Chalet Hotels: This hotel company hit an all-time high of Rs 497 on July 27, 2023. The stock price has increased by 10.3% over the past month, outperforming its industry’s change of 3.4%. In Q1FY24, the company’s profit grew by 210.6% YoY to Rs 88.7 crore, beating Trendlyne Forecaster’s estimate by 77.2%. Despite a 100 bps YoY decrease in the EBITDA margin, the adjusted margin (after deducting one-time tax and expenses) grew by 110 bps YoY. The company also appears in a screener for stocks with increasing net profit and margin. 

During Q1, Chalet Hotels implemented a strategic approach of raising prices at the expense of occupancy. Consequently,  the occupancy rate fell by 8 percentage points YoY to 70%, while the average room rate (ARR) surged by 38% YoY. This led to an increase of 24% YoY in revenue per available room (revPAR). 

Q2 is generally a weak quarter for hotels since the monsoon keeps people at home. But the demand outlook looks strong due to events like the G20 summit, the ODI World Cup, and demand from international travellers returning to pre-covid levels. Managing Director and Chief Executive Officer of Chalet Hotels, Sanjay Sethi, said, “India's strong economic indicators, a robust demand-supply environment, and ongoing capex initiatives bode well for the future of Chalet Hotels.” 

Prabhudas Lilladhar maintains its ‘Buy’ call on the firm and expects a revenue and EBITDA CAGR of 25% and 31% respectively over FY24-25 on the back of revPAR growth and operationalization of hotel/commercial assets. The brokerage believes that the upcoming events and new projects will drive future growth. According to Trendlyne Forecaster, the company has a consensus recommendation of ‘Buy’ from nine analysts.

  1. InterGlobe Aviation: This airline company fell by 4.6% in trade on Thursday, despite its healthy Q1FY24 performance. It is back in the black after posting its highest-ever quarterly net profit of Rs 3,090.6 crore, compared to a net loss of Rs 1,064.3 crore in Q1FY23. The stock beat Trendlyne Forecaster’s net profit estimates by 53.8%. Its profitability has improved on the back of a decline in average fuel prices and forex-related gains. Its revenue rose by 29.8% YoY, driven by an 18.8% YoY increase in capacity and a 30.1% YoY growth in passenger numbers. 

Despite its robust bottom-line performance, the street holds a bleak near-term outlook for the company, as doubts linger if the airline can replicate its Q1 success in Q2FY24. Brokerages point out that the firm benefited from Go First suspending its operations in May. According to reports, JM Financial expects the company’s Q2 profitability to be hit by higher aviation turbine fuel (ATF) costs and lower fares in the seasonally weak quarter. ATF prices have risen by 1.6% since July, which will increase margin pressure in Q2. 

Motilal Oswal believes that the company is not out of the woods yet as it has to ground 40 aircraft due to engine failures. However, the brokerage is optimistic about the company’s long-term prospects as it believes that IndiGo is well-positioned to expand its network given its strong order book. In June, the company placed an order for 500 Airbus A320 aircraft, making it the largest single purchase agreement in the history of commercial aviation. 

Despite potential headwinds in Q2FY24, the management has guided for a 25% YoY and 6% QoQ increase in capacity and also expects the passenger load factor to increase. 

  1. Cyient Ltd: Thissoftware and services firm saw its stock price rise by 8.9% in the past week, according to Trendlyne’s Technicals. Its Q1FY24 earnings reported a 34.9% YoY increase in revenue and a 52.4% surge in net profit, underperformingTrendlyne’s Forecaster estimates by 2.1% and 2.7% respectively. The EBITDA margins expanded by 30 bps YoY on account of lower administrative and general expenses, but an increase in employee wages moderated the growth. Also, a 270 bps QoQ drop in attrition rate helped increase the bottom line. 

Cyient’s transportation and sustainability segments grew by 3.5% and 4.4% respectively, while the new growth units (NGU) and connectivity verticals declined by 6.5% and 3.4%. Demand softness in the semiconductor and wireless segment impacted overall growth.

Cyient anticipates further growth in its Digital Engineering and Technology (DET) sector, driven by higher order intake from maintenance, repair and overhaul (MRO) projects in aerospace, and investments in clean energy and EV.   

Cyient won six large deals worth $49 million in the quarter, contributing to a total contract value of $193 million, a YoY increase of 32.5%. The management expects FY24 revenue to grow at a rate of 15-20%, with margin expansion in the range of 150-250 bps. This expansion will be on account of higher utilisation, lower attrition, and automation in certain divisions. The stock shows up in thescreener for firms with increasing profit margins and QoQ growth in net profit.

Cyient separated its Design Led Manufacturing division (DLM) asCyient DLM and listed it on the stock exchange on July 10, 2023. The IPO was subscribed 71.35 times and saw a gain of 52% from its IPO price on the listing day.

Axis Securities says Cyient’s stable order inflow in challenging times and margin expansion provides visibility for sustained growth momentum. The brokerage maintains its ‘Buy’ rating.

  1. UPL: This agrochemical company has fallen around 4% since Monday and touched a new 52-week low of Rs 600.4 on Thursday, after a weak show in Q1FY24. It has fallen by 23.7% in the past two years, making it a part of a screener of stocks with weak momentum.

UPL’s net profit dropped by 81.1% YoY to Rs 166 crore, missing Trendlyne’s Forecaster estimates by 56% in Q1FY24. Its revenue also decreased by 17% to Rs 8,963 crore, and the EBITDA margin fell by 387 bps to 17.8% due to slowdown in the agrochemical and broader chemical industries, pricing pressures, and muted demand. According to the management, “The market is witnessing pricing pressure, given the high base of the previous year and aggressive price competition from Chinese exporters."

During the quarter, UPL’s crop protection segment (which contributes around 85% to the total revenue) underperformed, with a revenue fall of around 30%. Meanwhile, the seeds business segment (which contributes around 10% of the revenue) rose by 29.7%. 

In contrast, other major agrochemical players like PI Industries have seen their CSM (custom synthesis and manufacturing) segment contribute 76% of the total revenue, and insecticides, fungicides and herbicides constitute 79% of Sumitomo Chemical's revenue. Trendlyne’s Forecaster shows PI Industries’ revenue to grow by 13.8% YoY in Q1FY24.

Mike Frank, the CEO of UPL, says, “We anticipate demand to remain subdued in Q2FY24 but expect performance to improve sequentially. We are optimistic about demand recovery in H2FY24 as channel inventory normalizes.” The company has cut its FY24 revenue growth guidance to 1-5% from 6-10% earlier and EBITDA growth guidance to 3-7% from 8-12%. It also targets at least a 50% cost reduction for FY24.

Post the Q1FY24 results, ICICI Securities maintains its ‘Add’ rating but lowers the target price to Rs 673, as it expects higher competition and input inflation. As a result, the company makes it to a screener of stocks with broker downgrades in price or recommendation in the past month.

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
04 Aug 2023
Market closes higher, SBI's Q1 net profit up 178.2% YoY to Rs 16,884.3 crore

Trendlyne Analysis

Nifty 50 closed at 19,517.00 (135.4, 0.7%), BSE Sensex closed at 65,721.25 (480.6, 0.7%) while the broader Nifty 500 closed at 16,890.60 (118.3, 0.7%). Of the 1,935 stocks traded today, 1,209 showed gains, and 665 showed losses.

Indian indices pare gains from the afternoon session and close in the green, with the Nifty 50 closing at 19,517. The volatility index, Nifty VIX, dropped by 5.5% and closed at 10.6 points. State Bank of India’s Q1FY24 net profit increased by 178.2% YoY to Rs 16,884 crore against the consensus estimates of Rs 15,328 crore.

Nifty Smallcap 100 and Nifty Midcap 100 closed in the green following the benchmark. Nifty Private Bank and Nifty IT closed higher than Thursday’s closing levels. According to Trendlyne’s sector dashboard, hardware, technology & equipment emerged as the top-performing sector of the day, with a rise of over 3.7%.

Most European indices trade in the green except for Switzerland’s SMI trading lower. US indices futures trade higher, indicating a positive start. Crude oil prices gained more than 2% since Thursday, as Saudi Arabia extended a production cut of 1 million barrels of oil per day till September.

  • Mahanagar Gas sees a short buildup in its August 31 future series as its open interest rises 36.9% with a put-call ratio of 0.3.

  • Axis Direct downgrades its rating on Ambuja Cements to ‘Hold’ from ‘Buy’ but raises the target price to Rs 455 from Rs 435. This implies a downside of 3.6%. The brokerage believes the stock has a limited upside given its recent uptrend, leading to the rating downgrade. However, it remains optimistic about the firm’s prospects on the back of healthy demand trends and cost reduction initiatives.

  • Kalpataru Projects International falls as reports suggest that the Income Tax Department is conducting searches at the company's premises in Rajasthan and Mumbai. The company appears in a screener of stocks with high promoter pledges.

  • Alkyl Amines Chemicals, Jindal Worldwide and Max Healthcare Institute’s weekly average delivery volumes rise ahead of their Q1FY24 results on Monday.

  • Devyani International is falling as its net profit plunges 84.1% YoY to Rs 117.6 crore in Q1FY24. However, revenue grows by 20.1% YoY owing to growth in sales from major franchises like KFC and Pizza Hut. Its EBITDA margin declines by 320 bps due to an increase in the cost of materials consumed and employee benefit and finance expenses. The company features in a screener of stocks with declining net cash flow.

  • Mahindra & Mahindra is falling despite its Q1FY24 net profit surging by 59.8% YoY to Rs 3,508.4 crore, while its revenue grows by 19.3% YoY. This healthy performance is driven by its robust growth in the automotive segment. The stock shows up in a screener for companies with revenue rising sequentially over the past four quarters.

  • Jefferies believes Dixon Technologies will benefit from the Centre's decision to restrict the import of electronic devices like laptops, personal computers, and tablets, as it strengthens the Centre's focus on indigenization. The brokerage has a 'Hold' rating on the company and expects robust sales in FY23-26.

  • Concord Biotech's Rs 1,550 crore IPO gets bids for 0.34X the available 1.5 lakh shares on offer on the first day of bidding. The retail investor quota gets bids for 0.47X of the available 73.2 lakh shares on offer.

  • SBFC Finance's Rs 1,025 crore IPO gets bids for 3.88X the available 13.4 crore shares on offer on the second day of bidding. The retail investor quota gets bids for 3.91X of the available 6.6 crore shares on offer.

  • State Bank of India falls despite its Q1FY24 net profit rising by 178.2% YoY to Rs 16,884.3 crore. Its net interest income grows by 32% YoY, aided by the treasury, corporate/wholesale banking and retail banking operations segments. The bank's asset quality improves as gross and net NPA ratios decline by 115 bps and 29 bps respectively. The company appears in a screener of stocks with high TTM EPS growth.

  • Foreign institutional investors take out Rs 223.8 crore from the equity market over the past week, according to Trendlyne's FII dashboard. Meanwhile, index options witness the highest outflow of Rs 61,461 crore from foreign investors.

  • Mahanagar Gas is falling despite its Q1FY24 net profit surging by 98.9% YoY to Rs 368.4 crore, aided by a decline in the cost of natural gas. The firm’s revenue grows by 16.2% YoY, driven by growth in sales volume of piped natural gas (PNG). However, the company’s total gas sales volume declines by 1% YoY, as compressed natural gas (CNG) sales volume falls by 2.3% YoY.

  • One97 Communications (Paytm) is rising as its average monthly transacting users in July increase by 19% YoY to 9.3 crore. Its merchant payment volumes also grow by 101% YoY. The loan distribution business sees its disbursements jump up 148% YoY to Rs 5,194 crore. The stock shows up in a screener for companies with improving return on capital employed (RoCE) over the past two years.

  • Krsnaa Diagnostics is rising after the High Court of Rajasthan ruled in its favour regarding an agreement for providing laboratory and diagnostic services in Rajasthan. Earlier, the Rajasthan government had cancelled the acceptance letter awarded by the National Health Mission to a consortium of the firm and Telecommunications Consultants India.

  • India’s FPI flows touch an 11-month high, as FPIs purchase Indian shares worth Rs 46,618 crore ($5.63 billion) on a net basis in July, according to data from the National Securities Depository (NSDL). This has driven the Nifty 50 and S&P BSE Sensex to record highs.

  • Twin Star Holdings, promoter of Vedanta, sells a 4.1% stake in the company in a bulk deal on Thursday. Copthall Mauritius Investment and Societe Generale are the buyers.

  • Deepak Nitrite rises despite its Q1FY24 net profit falling by 36.1% YoY to Rs 149.9 crore. Its revenue also decreases by 12.9% YoY due to a decline in the advanced intermediaries and phenolics segment. The company appears in a screener of stocks with improving book value per share.

  • Zomato surges as it reports a net profit of Rs 2 crore in Q1FY24, compared to a loss in Q1FY23. Its revenue rises by 64.2% YoY. Deepinder Goyal says, "We expect our business to remain profitable going forward and will continue to deliver 40%+ YoY top line (adjusted revenue) growth for at least the next couple of years."

  • Vir Advani, Vice-Chairman of Blue Star, says, the company anticipates double-digit sales growth for FY24. He adds that a portion of the funds raised will be used to reduce the net debt, which is now at Rs 283 crore. Blue Star's net profit rises by 12.3% YoY to 83.4 crore and revenue up by 12.9% in Q1FY24.

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

  • JM Financial is falling as its net profit contracts by 11% YoY to Rs 176.6 crore in Q1FY24. However, its revenue grows by 34.6%, aided by improvements in interest, brokerage, and fees & commission income. The lender's asset quality depreciates as its gross NPA increases by 60 bps YoY. It features in a screener of stocks with a decline in quarterly net profit and profit margin (YoY).

  • Cipla touches 52-week high today as reports suggest that Blackrock is expected to acquire over 33% promoter stake in the firm. The exit of the previous promoters, the Hamied family, from the company is expected to be formally initiated. It appears on a screener for stocks with strong momentum.

  • Concord Biotech raises Rs 464.95 crore from anchor investors ahead of its IPO by allotting 62.7 lakh shares at Rs 741 each. Investors include HSBC Mutual Fund, Government Pension Fund Global, Abu Dhabi Investment Authority, Amundi Funds, Polar Capital Funds and Pinebridge Global Funds.

  • JP Morgan maintains its ‘Underperform’ rating on Gujarat Gas with a target price of Rs 350, citing disappointing Q1 results due to margin compression. The brokerage expects margin and volume volatility to continue for the firm.

  • Eicher Motors rises as its Q1FY24 net profit increases by 50.4% YoY to Rs 918.3 crore. Its revenue grows by 22.7% YoY and EBITDA margin improves by 470 bps YoY. The company appears in a screener of stocks with increasing quarterly revenue.

  • Lupin rises as its Q1FY24 net profit increases to Rs 452.3 crore, compared to a net loss of Rs 89.1 crore in Q1FY23. Its revenue grows by 28.6% YoY on the back of robust growth in North America, India, Europe, Middle East and Africa. The company appears in a screener of stocks with strong annual EPS growth.

  • Bharti Airtel’s Q1FY24 net profit marginally rises by 0.4% YoY to Rs 1,612.5 crore, despite its revenue growing by 14.3%. The profit decline is mainly due to a one-time loss of Rs 3,416.3 crore caused by the devaluation of the Nigerian currency. Its average revenue per user grows by 9.8% YoY to Rs 200. The stock shows up in a screener for companies with revenues rising sequentially for the past eight quarters.

Riding High:

Largecap and midcap gainers today include Zomato Ltd. (95.40, 10.23%), PB Fintech Ltd. (781.00, 8.25%) and LIC Housing Finance Ltd. (426.65, 8.19%).

Downers:

Largecap and midcap losers today include Aditya Birla Fashion and Retail Ltd. (209.80, -5.05%), Cummins India Ltd. (1,796.10, -4.52%) and Max Healthcare Institute Ltd. (538.30, -3.13%).

Volume Rockets

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

Top high volume gainers on BSE included Zomato Ltd. (95.40, 10.23%), LIC Housing Finance Ltd. (426.65, 8.19%) and Info Edge (India) Ltd. (4,886.70, 7.69%).

Top high volume losers on BSE were Mahanagar Gas Ltd. (1,056.25, -5.75%), Cummins India Ltd. (1,796.10, -4.52%) and Kalpataru Projects International Ltd. (606.20, -3.88%).

Amber Enterprises India Ltd. (2,504.25, 3.91%) was trading at 5.7 times of weekly average. Dixon Technologies (India) Ltd. (4,616.25, 3.89%) and Welspun Corp Ltd. (321.20, -2.80%) were trading with volumes 5.1 and 4.8 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

37 stocks took off, crossing 52-week highs, while 1 stock was an underachiever and hit its 52-week low.

Stocks touching their year highs included - Akzo Nobel India Ltd. (2,822.80, -2.66%), Alembic Pharmaceuticals Ltd. (780.40, -0.08%) and Apollo Tyres Ltd. (437.30, 1.33%).

Stock making new 52 weeks lows included - Vedanta Ltd. (247.05, -2.76%).

12 stocks climbed above their 200 day SMA including Jubilant Foodworks Ltd. (517.15, 5.27%) and FSN E-Commerce Ventures Ltd. (147.55, 2.86%). 6 stocks slipped below their 200 SMA including Metropolis Healthcare Ltd. (1,359.25, -3.44%) and Bajaj Finserv Ltd. (1,486.30, -0.49%).

 
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The Baseline
03 Aug 2023
FII and MF holding changes: Shriram Fin wins with FIIs, while Timken leads with Mutual Funds
By Akshat Singh

Retail investors often pay close attention to the preferences of mutual funds and foreign portfolio investors, as they are considered the ‘smart money’ that can influence and move financial markets. In this edition of Chart of The Week, we look into the Q1FY24 shareholding data for companies with the highest increases in foreign institutional investment (FII) holdings QoQ. We also identify companies with an increase in their domestic institutional investment (DII) holding% with the help of a screener. 

According to Trendlyne's FII/DII activity data, FIIs have been net buyers in Indian equities since March 2023 and MFs have followed suit since June. In the above screener, we have companies from the banking & finance, diversified, general industrials, retailing and hotels, restaurant & tourism sectors. Notable companies in the list include HDFC Asset Management Company, Devyani International, Timken India, Craftsman Automation, Vedant Fashion and Aditya Birla Capital. 

We begin with the banking & finance sector, where we find two companies: Shriram Finance and HDFC Asset Management Company. Shriram Finance has the highest FII holding increase of 5.6 percentage points in Q1FY24. Mutual funds have also increased their stake in the company by 2.8%. Shriram’s stock price rose by 28.8% in the past quarter. Shriram Finance is currently the largest retail NBFC in the country after the merger of Shriram Transport Finance Co and Shriram City Union Finance. According to Motilal Oswal, the merger brings benefits like increased product sales and financial strength. 

Notable FII investors in Shriram Finance are T.Rowe Emerging Markets (1% stake), Vanguard (1% stake), and Government of Singapore (3.3% stake). The MF holding jump is mainly due to the investments made by Kotak Mahindra (1.4% stake).  

HDFC Asset Management, on the other hand, has seen an increase of 5.5 percentage points in FII holdings and 4.3 percentage points in MF holding in Q1FY24. Its stock price rose by 26.9% in the past quarter. The key FII investor in this case is SmallCap World Fund (0.4% stake), while the major DIIs are SBI Mutual Fund (7% stake), and Nippon Life India Trustee (1.8% stake).

Moving on to the hotels, restaurant & tourism sector, we have two major companies, namely Devyani International and Sapphire Foods. Devyani International’s FII holdings surged by 2.3% in Q1FY24. 

Sapphire Foods stands out with the highest FII holding increase of 3.2 percentage points in its sector and an MF holding rise of 1.7 percentage points in Q1. The FII holding rise is mainly due to investments by Fidelity Funds (0.4% stake) and Kotak Funds (0.2% stake). Similarly, the MF holding increase is led by Nippon India (1.4% stake) and Franklin India (0.4% stake). According to ICICI Securities, despite challenges in Q1FY24, the company’s revenue is expected to  grow by 16.5% QoQ. Both KFC and Pizza Hut (PH) India faced sluggish demand during Q4FY23, with PH India declining by 2% in SSSG (Same Store Sales Growth), while KFC saw a 2% increase. 

In the auto & auto components sector, Craftsman Automation has the highest FII holding increase of 3.3 percentage points in Q1FY24. The investment by Goldman Sachs (1.2% stake) contributed to this surge. The stock has surged 49% in the past quarter. According to Motilal Oswal, the company has diversified its business and reduced its dependence on specific segments. The recent acquisition of DR Axion boosted its presence in passenger vehicles (PVs) and decreased reliance on commercial vehicles (CVs). It has also entered the electric Vehicle (EV) segment. 

As for Timken India, a general industrials major, it has the highest MF holding increase of 5.2% in the past quarter, the highest in its sector. The MFs that invested in the company are SBI Tax Advantage Fund (4.7% stake), Nippon India (0.8% stake),  and Aditya Birla Sun Life (1.2% stake). Analysts predict that significant capital investments over the next three years will serve as the main catalyst for the stock’s growth. These investments will focus on various projects, including the development of Vande Bharat trains, freight wagons, electric locomotives, and other initiatives. 

In the retail sector, Aditya Birla Capital’s FII and MF holdings have increased by 3.2% and 0.37% respectively. Vedant Fashions’ FII and MF holdings also rose by 2.9% and 3.9% respectively in the past quarter. Similarly, the consumer electronics major, Dixon Technologies, surged by 3% and 1.8% in FII and MF holdings respectively. The software & services major, KPIT Technologies, saw an increase of 2.5% in FII holdings in the same period. 

Check out the full screener here.