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Trendlyne Marketwatch
Trendlyne Marketwatch
14 Aug 2023
Market closes flat, Divi's Laboratories' Q1 net profit down 49.3% YoY to Rs 356 crore

Trendlyne Analysis 

Nifty 50 closed at 19,434.55 (6.3, 0.0%), BSE Sensex closed at 65,401.92 (79.3, 0.1%) while the broader Nifty 500 closed at 16,825.55 (-34.6, -0.2%). Market breadth is in the red. Of the 1953 stocks traded today, 707 were on the uptrend, and 1207 went down.

Indian indices recovered from the losses from the afternoon session and close flat, with the Nifty 50 closing at 19,435. The volatility index, Nifty VIX, rose by 4.2% and closed at 12 points. India’s trade deficit in July rose to $20.7 billion against $20.1 billion in June. India’s imports in July contracted by 17% YoY, while exports shrank by 16% YoY.

Nifty Smallcap 100 and Nifty Midcap 100 closed in the red following the benchmark. Nifty Media and Nifty IT closed higher, compared to Friday’s closing levels. According to Trendlyne’s sector dashboard, healthcare equipment & supplies emerged as the top-performing sector of the day, with a rise of over 0.9%.

Most European indices trade in the green except for England’s FTSE 100 trading lower. US indices futures trade higher, indicating a positive start. Germany’s July wholesale price index (WPI) data indicated wholesale inflation dropping by 2.8% YoY against the estimates of a 2.6% decline. The WPI for June fell by 2.9% YoY.

  • Relative strength index (RSI) indicates that stocks like Shyam Metalics and Energy, Gland Pharma, GMR Airports Infrastructure and REC are in the overbought zone.

  • JK Cement falls as its Q1FY24 net profit decreases by 29.5% YoY to Rs 114.7 crore. The decline is due to higher raw material, finance, power & fuel and freight & forwarding expenses. However, its revenue grows by 22.2% YoY, aided by cement and cement-related products. The company appears in a screener of stocks with declining net profit and margins.

  • India’s merchandise exports stand at $32.3 billion in July and imports at $52.9 billion, while the trade deficit narrows YoY to $20.7 billion.

  • Spicejet surges more than 9% as it posts a net profit of Rs 197.6 crore in Q1FY24 compared to a loss in Q1FY23. However, its revenue declines by 18.5% YoY to Rs 2,003.6 crore due to the air transport and freighter & logistics services. The company shows up in a screener of stocks with high interest payments compared to earnings.

  • Patanjali Foods falls as its Q1FY24 net profit decreases by 63.6% YoY to Rs 87.8 crore. However, its revenue grows by 6% YoY, aided by the edible oils and wind turbine power generation segments. The company appears in a screener of stocks with declining RoA.

  • AstraZeneca Pharma India is rising as its Q1FY24 net profit jumps 167.3% YoY to Rs 53.9 crore, while its revenue increases by 27.2% YoY. The stock shows up in a screener for companies with revenues increasing sequentially over the past four quarters.

  • PR Hari, CMD of Garden Reach Shipbuilders & Engineers, believes that they will be able to continue similar levels of growth for the remainder of the fiscal year. He adds that it has executed orders worth Rs 750 crore during the quarter. Its Q1FY24 net profit rises by 52.8% YoY to Rs 76.7 crore and revenue increases by 33.2% YoY.

  • Adani Group stocks fall as reports suggest that the Securities and Exchange Board of India (SEBI) has filed an application before the Supreme Court seeking 15 more days to submit its report on the Adani-Hindenburg case. SEBI states that it has examined a total of 24 matters, of which investigation into 17 have been completed.

  • Divi's Laboratories falls as its Q1FY24 net profit decreases by 49.3% YoY to Rs 356 crore. Its revenue and EBITDA margin drop by 20.6% YoY and 8.5 percentage points respectively, aided by raw material and employee benefit expenses. The company appears in a screener of stocks with a major fall in TTM net profit.

  • Adani Ports & Special Economic Zone falls as Deloitte Haskins & Sells resigns as the statutory auditor of the company. The company has appointed MSKA & Associates as its new statutory auditor. Adani Ports appears in a screener of stocks with high promoter stock pledges.

  • TVS Supply Chain Solutions' Rs 880 crore IPO gets bids for 2.78X the available 2.5 crore shares on offer on the third day of bidding. The retail investor quota gets bids for 7.61X of the available 46.3 lakh shares on offer.

  • Sterling and Wilson Renewable Energy is rising as it bags an order worth Rs 1,130 crore from Gujarat Industries Power Co for the construction of a solar power project in Khavda, Gujarat. The company shows up in a screener for stocks that have gained more than 20% over a month.

  • India’s WPI inflation contracts to -1.4% in July. Food inflation surges to 7.8%, while prices of mineral oils, basic metals, textiles, and chemicals & chemical products decline.

  • Ramkrishna Forgings is rising as it bags an order worth $13.6 million (approximately Rs 113.2 crore) per year from a North American client. The contract is for the production and supply of rear axle and transmission components for class 5, 6 and 7 vehicles.

  • Jindal Steel & Power is falling as its Q1FY24 net profit declines 15.4% YoY to 1,686.9 crore, while its revenue dips by 3.5% YoY to Rs 12,588.3 crore due to a fall in steel prices. Its EBITDA margin contracts by 5.6 percentage points YoY to 20.8%. The stock shows up in ascreener for companies with high promoter stock pledges.

  • Redington is falling as Managing Director Rajiv Srivastava resigns on Friday due to personal reasons.

  • ITC appoints Hemant Malik as Wholetime Director of the company with effect from August 12, 2023. It also re-appoints Sanjiv Puri as Managing Director and Chairman with effect from July 22, 2024.

  • CLSA maintains its ‘Buy’ rating on Voltas with a target price of Rs 1,000. The brokerage notes a 16% growth in revenue from the company's unitary cooling products segment in Q1FY24. It adds that the firm's volumes have increased by 15%, while its market share declined. It also highlights the weak quarter reported by the electro-mechanical projects & services segment.

  • NMDC rises as its Q1FY24 net profit increases by 12.9% YoY to Rs 1,661 crore. Its revenue also grows by 15.8% YoY, aided by the iron ore, pellet and other mineral & services segments. The company appears in a screener of stocks with strong momentum.

  • Larsen & Toubro wins orders worth Rs 1,000-2,500 crore in India and Bangladesh. The projects include the construction of a cricket stadium in Uttar Pradesh, India and four Hi-Tech IT parks in Bangladesh. The stock shows up in a screener for companies with high TTM EPS growth.

  • Societe Generale buys a 0.5% stake in Rites for approx Rs 58 crore in a bulk deal on Friday.

  • Indian rupee depreciates 16 paise and opens at a 10-month low of 83.01, from the previous close of 82.85 against the US dollar. The fall is on the back of a surge in US Treasury yields and sells by FIIs in the domestic equity market.

  • Metal stocks like Adani Enterprises, Jindal Steel & Power,National Aluminium and Steel Authority of India (SAIL) are falling in trade. The broader sectoral indices Nifty Metal and BSE Metal are also trading in the red.

  • Oil and Natural Gas Corp (ONGC) rises to a new 52-week of Rs 180.5 as its Q1Y24 net profit increases by 18.4% YoY to Rs 14,133.9 crore. This growth is due to reduced expenses on raw materials, inventory, and statutory levies. However, its revenue falls by 9.7% YoY, aided by its refining & marketing and exploration & production segments. The company appears in a screener of stocks with strong momentum.

  • FSN E-Commerce Ventures is falling as its net profit declines by 27.4% YoY to Rs 3.3 crore in Q1FY24 due to increased costs of raw materials, finance, and employee benefits. However, its revenue improves by 23.8% YoY, owing to an increase in revenue from the beauty & personal care and fashion segments. The company appears in a screener of stocks with return on equity (RoE) declining over the past two years.

Riding High:

Largecap and midcap gainers today include NMDC Ltd. (118.70, 4.35%), Indian Railway Finance Corporation Ltd. (50.85, 3.99%) and Bank of India (89.70, 2.81%).

Downers:

Largecap and midcap losers today include FSN E-Commerce Ventures Ltd. (134.30, -8.14%), Jindal Steel & Power Ltd. (662.25, -5.15%) and Muthoot Finance Ltd. (1,282.20, -5.03%).

Movers and Shakers

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

Top high volume gainers on BSE included Mazagon Dock Shipbuilders Ltd. (1,863.10, 6.99%), JBM Auto Ltd. (1,311.10, 6.69%) and Cochin Shipyard Ltd. (687.90, 6.51%).

Top high volume losers on BSE were FSN E-Commerce Ventures Ltd. (134.30, -8.14%), City Union Bank Ltd. (121.50, -5.85%) and Timken India Ltd. (3,218.75, -5.38%).

AstraZeneca Pharma India Ltd. (3,958.75, 1.81%) was trading at 27.1 times of weekly average. Muthoot Finance Ltd. (1,282.20, -5.03%) and PVR INOX Ltd. (1,713.55, 4.56%) were trading with volumes 7.6 and 4.5 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

15 stocks overperformed with 52 week highs, while 2 stocks hit their 52 week lows.

Stocks touching their year highs included - AIA Engineering Ltd. (3,624.30, 0.66%), Alembic Pharmaceuticals Ltd. (790.60, 0.22%) and Aurobindo Pharma Ltd. (871.65, 0.98%).

Stocks making new 52 weeks lows included - UPL Ltd. (590.30, -1.57%) and Vedanta Ltd. (234.00, -1.76%).

4 stocks climbed above their 200 day SMA including NMDC Ltd. (118.70, 4.35%) and Tamilnad Mercantile Bank Ltd. (475.70, 3.31%). 30 stocks slipped below their 200 SMA including Rashtriya Chemicals & Fertilizers Ltd. (106.80, -5.36%) and GMM Pfaudler Ltd. (1,522.60, -4.25%).

 
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The Baseline
11 Aug 2023, 04:35PM
Five Interesting Stocks Today
  1. Dixon Technologies (India) Ltd: Thisconsumer electronics manufacturer is expected to sign new contracts following new government restrictions on importing laptops, tablets, and servers. The stock rose 7.5% on the day of the announcement. Dixon Technologies’ CFO, Saurabh Gupta, commenting onthe news, said, “The company’s IT hardware segment turnover could rise by Rs 3,000-4,000 crore in the next two years due to the government policy.”

In Q1FY24, Dixon’s revenue increased by 14.6% YoY, driven by higher sales in the mobile division. However, TV and LED light sales have been muted. Lower raw material costs led to a 55 bps expansion in gross margins. Dixon’s EBITDA margin improved by 53 bps YoY and is projected to increase by another 30 bps in FY24. New client acquisitions in mobile manufacturing, as well as incremental orders from existing clients are expected to drive revenue growth. The firm aims to improve margins by adding more products through original design manufacturing and backward integration, with a  planned capex of Rs 400 crore for FY24. The stock shows up in thescreener for growth in quarterly net profit and profit margin.

Dixon has partnered with China-based mobile companies Xiaomi and Itel to manufacture smartphones in India. Production is expected to start in September 2023. There are also recentreports that Dixon is in talks with Google to produce Google Pixel Phones in India. Dixon started the production of 4G phones for Jio in May 2023.

BOB Capitals says Dixon Technologies has the ability to deliver revenue and PAT growth of 45% and 60% respectively in FY24. However, the stock’s recent run-up discounts the near-term positive outlook. The brokerage has revised its rating from ‘Buy’ to ‘Hold’. 

  1. Samvardhana Motherson International: This auto parts & equipment manufacturer fell 2.9% on Thursday as its revenue marginally missed Trendlyne’s Forecaster estimates by 0.9% in Q1FY24. However, its net profit jumped 2.3x YoY to Rs 600.9 crore in Q1 but fell 8.1% QoQ. 

Despite the initial fall in share price after the result announcement, it recovered on Friday and closed 1.9% higher. The company's Q1 revenue improved by 27.7% YoY to Rs 22,280.3 crore, aided by an increase in revenue from the wiring harness, modules & polymer products, vision systems and emerging businesses segments. The rise in net profit and revenue helps the company show up in a screener of stocks with good quarterly growth in the recent results.

In terms of geography mix, sales in North America, Europe and China have witnessed YoY growth, but North American and European sales dipped QoQ due to declining demand. According to the management, “Macroeconomic factors are stabilising at elevated levels, while wage bills and interest rates continue to pressure profitability on a QoQ basis.” 

Post results, Motilal Oswal maintains its ‘Buy’ rating on the stock with an upgraded target price of Rs 115 per share. This indicates a potential upside of 17.8%. The brokerage remains positive about the company’s future based on the overall recovery of the industry, , strong order book execution for Samvardhana Motherson Automotive Systems Group BV (SMRPBV), receding cost inflation, and capacities in place for growth. 

The stock has a consensus estimate of ‘Buy’ from 13 out of 18 analysts. However, it is in ‘the Sell’ zone based on the time it has spent below its current PE.

  1. Trent: This retailer rose by over 6% in trade on Thursday and touched its all-time high of Rs 1,915. This uptrend follows the release of its Q1FY24 results on Wednesday. The company’s net profit has risen by 32.9% YoY to Rs 173.5 crore and revenue grew by 45.8% YoY, beating Trendlyne’s Forecaster estimates by 19.7% and 14.7% respectively. This growth comes despite a slowdown in discretionary spending, and subdued market conditions. In addition to exceeding Forecaster estimates, Trent has also outperformed its peers. For instance, Aditya Birla Fashion & Retail posted a net loss of Rs 141.4 crore in Q1FY24, while Shoppers Stop’s net profit fell by 36.5% YoY to 14.5 crore. 

The company’s progress was driven by a 40% YoY growth in store count, reaching a total of 609 fashion stores. The company added seven Westside stores in Q1, taking the total to 221, and added 40 Zudio stores (also closed 4 stores), bringing the total to 388. The firm plans to add 200 Zudio stores in FY24. Noel N Tata, Chairman of Trent, says, “We will further expand our reach, aiming to be even closer  and more convenient for  customers, reinforcing our brand commitment.”

Despite its healthy performance, the fashion retailer’s gross margins have contracted by 479 bps YoY to 44.5%. According to ICICI Securities, the fall in margins is due to an increasing mix of Zudio, which has a relatively lower margin profile. While Westside serves as the company’s flagship brand, Zudio represents its value-fashion brand. Also, a 70.2% YoY rise in rental expenses increased pressure on its margins. 

Overall, the company’s balance sheet is healthy despite its expansion strategy. Trent plans to aggressively increase its store count in key markets and expand its digital presence to drive growth in the coming quarters.

  1. Zomato: This food delivery services provider reported its first-ever profit in Q1FY24 on the back of  a 64.2% YoY revenue growth. Despite a loss before tax, a deferred tax credit of Rs 17 crore has resulted in a net profit of Rs 2 crore, beating Trendlyne Forecaster’s estimated loss of Rs 168.5 crore. Post results, Zomato touched a 52-week high of Rs 102.9 on Monday and has risen by 7.9% in the past week. It also features in a screener for stocks with the highest recovery from 52-week lows.

Temporary store closures in Delhi and reduced traffic of delivery partners in April-May (summer season) impacted Blinkit’s (quick commerce segment) gross order value, resulting in muted growth. Yet, its average order value improved. On the other hand, the Hyperpure platform saw a 27% YoY growth in revenue as Zomato increased the minimum order value. 

Easing competitive pressures in the quick commerce segment, driven by a lack of funding for smaller players, is expected to contribute to future growth. Zomato dominates the food delivery market and boasts an increasing user base. Chief Financial Officer Akshant Goyal says, “We expect our business to remain profitable and continue to deliver over 40% YoY top-line growth for at least the next couple of years.”

Given improved visibility of profitability and sustained improvement in underlying operating metrics, ICICI Securities maintains a ‘Buy’ call on Zomato, and expects Blinkit to turn profitable by FY25 and Hyperpure by FY26. According to Trendlyne’s Forecaster, the company has a consensus recommendation of ‘Buy’ from 25 analysts, of which 17 are ‘Strong Buy’.

  1. Emami: This personal products company has risen around 15% since Monday and is trading near its 52-week high of Rs 524 after reporting healthy Q1FY24 results. As a result, the company’s share price has outperformed its sector by 21.7% in the past month and features in a screener of stocks with strong momentum.

The company’s net profit surged by 86.5% YoY to Rs 137.7 crore, driven by a fall in the cost of inventory, and beat Trendlyne’s Forecaster estimates by 12.3%. Its revenue also rose by 6.8% YoY, due to healthy growth in both domestic and international businesses. Its gross margins also improved by 240 bps on the back of easing input costs and a better product mix. 

In Q1FY24, FMCG companies saw their operating margins expand YoY, thanks to the cooling of inflation over the past few months and a gradual recovery in rural demand. Mohan Goenka, Vice-Chairman and Whole-Time Director of the company, says, "Going forward, we expect a steady recovery in rural demand, led by the easing of liquidity pressure, forecast of near normal monsoon and moderation of inflation.”

Despite a rise in revenue, the company’s summer product segment has witnessed a 5% decline in sales due to erratic summer and monsoon conditions across the country. Meanwhile, sales across the non-summer portfolio (which consists of Zandu pain management, BoroPlus and Kesh King ranges) grew by 16%.

ICICI Securities maintains its ‘Add’ rating post Emami’s Q1 results, but raises the target price to Rs 520. The brokerage has a positive outlook on the FMCG company, noting its distribution expansion plans and new product launches. Emami makes it to a screener of stocks where brokers have upgraded recommendations or target prices 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
11 Aug 2023, 03:45PM
Market closes lower, Allcargo Logistics' Q1 net profit down 53.7% YoY to Rs 122.6 crore

Trendlyne Analysis

Nifty 50 closed at 19,428.30 (-114.8, -0.6%), BSE Sensex closed at 65,322.65 (-365.5, -0.6%) while the broader Nifty 500 closed at 16,860.15 (-79.7, -0.5%). Of the 1,924 stocks traded today, 739 were on the uptick, and 1,133 were down.

Indian indices extended their losses from the afternoon session and closed in the red, with the Nifty 50 closing below the 19,450 mark. Indian indices posted weekly losses for a third straight week after hitting their all-time high on July 20. HCL Technologies closed over 2.9% higher after it signed a deal worth $2.1 billion with Verizon Business to provide managed network solutions to its global enterprise customers.

Nifty Smallcap 100 and Nifty Midcap 100 closed in the red, following the benchmark index. Nifty Media and Nifty Pharma closed sharply lower than their Thursday’s close. According to Trendlyne's sector dashboard, Media was the top-performing sector of the week as it rose over 6.9%.

European indices traded in the red, in line with most major Asian indices. US index futures traded flat or lower, indicating a cautious start to the trading session. Brent crude oil futures traded flat after falling over 1.3% on Thursday.

  • Money flow index (MFI) indicates that stocks like Gland Pharma, Cipla, FDC and Indian Railway Finance Corp are in the overbought zone.

  • 3M India and Force Motors touch their 52-week highs of Rs 29,310 and Rs 3,342.7 respectively. The former has risen 4.5% over the past month, while the latter increased by 29.1%.

  • Apollo Hospitals Enterprise falls as its Q1FY24 net profit decreases by 47.5% YoY to Rs 166.6 crore due to higher inventory and employee benefit expenses. However, its revenue rises by 16.6% YoY, aided by healthcare services and digital health & pharmacy distribution. The company appears in a screener of stocks with declining quarterly profits.

  • Apollo Tyres plunges more than 7% despite its net profit surging by 123.8% YoY to Rs 396.9 crore in Q1FY24. Its revenue improves by 5.1% YoY, aided by the Asia Pacific Middle East and Africa (APMEA) and Europe segments. However, the revenue misses Trendlyne's Forecaster estimates by 1.4%. It appears in a screener of stocks where mutual funds have decreased their holdings.

  • Baba Kalyani, CMD of Bharat Forge, says 80% of the company’s defence business is exports, with a strong demand for defence products across different countries. He adds that it targets Rs 12,000 crore in revenue from the defence vertical in FY24.

  • Raymond touches a 52-week high as its Q1FY24 net profit rises by 1,216.8% YoY to Rs 1,065.3 crore due to gains from the complete shareholding acquisition of Castello Italia, ltaly. Its revenue also increases by 2.5% YoY. The company appears in a screener of stocks with strong momentum.

  • Info Edge (India) falls despite posting a Q1FY24 net profit of Rs 158.6 crore, compared to a net loss of Rs 272.8 crore in Q4FY23. The profit rise is aided by reduced advertising and promotion expenses. However, its revenue grows by 4.1X YoY on the back of growth in the recruitment solutions and real estate segments. The company appears in a screener of stocks with MACD crossover above the signal line.

  • TVS Supply Chain Solutions' Rs 880 crore IPO gets bids for 1.03X the available 2.5 crore shares on offer on the first day of bidding. The retail investor quota gets bids for 3.62X of the available 46.3 lakh shares on offer.

  • Axis Direct downgrades its rating on UNO Minda to ‘Hold’ from ‘Buy’ but raises the target price to Rs 620 from Rs 600. This implies an upside of 5.2%. The brokerage cites the stock’s recent run-up in the market for lowering its rating. However, it believes the firm will continue its operational outperformance on the back of its EV product portfolio, robust order book and capacity expansion projects.

  • Lemon Tree Hotels falls despite its Q1FY24 net profit rising 69.4% YoY to Rs 23.5 crore. Its revenue grows by 16.8% YoY, aided by average room rent and occupancy. The company appears in a screener of stocks with improving RoA.

  • Allcargo Logistics falls as its Q1FY24 net profit decreases by 53.7% YoY to Rs 122.6 crore due to higher employee benefits and finance expenses. Its revenue drops by 42.2% YoY, aided by international supply chain and express distribution. The company appears in a screener of stocks with declining quarterly revenues.

  • Foreign institutional investors invest Rs 3,256.9 crore in the equity market over the past week, according to Trendlyne's FII dashboard. Meanwhile, index options witness the highest outflow of Rs 16,074.1 crore from foreign investors.

  • Zydus Lifesciences' Q1FY24 net profit jumps 109.7% YoY to Rs 1,086.9 crore as EBITDA margins expand by 8.3 percentage points YoY. Its revenue rises by 28.4% YoY, led by robust growth in the US formulations segment. The stock shows up in a screener for companies with revenue increasing sequentially for the past four quarters.

  • Anuj Poddar, MD & CEO of Bajaj Electricals, reports a 6% growth in appliance segment volumes during Q1, with the fans segment declining around 10-11%. He says that achieving a double-digit EBITDA margin for FY24 is not feasible, but remains optimistic and assures that the trajectory will be upward.

  • Tilaknagar Industries is rising as it prepays a restructured debt amounting to Rs 176.2 crore to Edelweiss Asset Reconstruction. The company has funded the prepayment through a loan of Rs 130 crore from Kotak Mahindra Bank and utilizing internal accruals.

  • Torrent Power is falling despite its net profit growing by 3% YoY to Rs 517.3 crore in Q1FY24. Revenue also improves by 12.6% YoY, aided by the generation, transmission & distribution and renewables segments. The company appears in ascreener of affordable stocks with high return on equity and momentum.

  • Citibank sells a 1.1% stake in Tata Motors for approx Rs 2,089.2 crore in a bulk deal on Thursday.

  • The MSCI Global Standard Index adds eight companies, including Ashok Leyland, Astral, Cummins India, and Supreme Industries, to its list during its August review. Meanwhile,ACC has been excluded from the MSCI Global Standard India Index, while the MSCI India SmallCap index has seen 41 new additions.

  • K P R Developers, promoter of KPR Mill, sells a 0.5% stake in the company for approx Rs 114.1 crore in a bulk deal on Thursday.

  • GMM Pfaudler rises in trade as its Q1FY24 net profit increases by 22% YoY to Rs 835.2 crore. Revenue improves by 23.4% YoY due to robust performance in its overseas segment. It appears in a screener of companies with zero promoter pledge.

  • PSU banks like Indian Overseas Bank, Central Bank of India, UCO Bank, Punjab & Sind Bank and Bank of Maharashtra are rising in trade. The broader sectoral index, Nifty PSU Bank, is also trading in the green.

  • Morgan Stanley has an ‘Overweight’ rating on Page Industries and raises the target price to Rs 44,738. The brokerage believes that the company's margins have improved sharply in Q1 on the back of cost-control measures. It adds that the firm's volume has been impacted by lower demand, but the management is hoping for a strong festive season.

  • Life Insurance Corporation of India rises as its Q1FY24 net profit increases by 13.9X YoY to Rs 9,543.7 crore due to a change in the accounting of solvency margin. While its revenue grows by 12% YoY, the gross value of new business added drops by 7% YoY. The company appears in a screener of stocks with strong annual EPS growth.

  • HCL Technologies is rising as it signs a deal worth $2.1 billion with Verizon Business to provide managed network solutions to its global enterprise customers. The total contract value will be spread out over the next six years. The stock shows up in a screener for companies with book value per share improving over the past two years.

  • Steel Authority of India falls as its Q1FY24 net profit decreases by 73.6% YoY to Rs 212.5 crore due to higher finance and inventory expenses. However, its revenue grows by 2.6% YoY, aided by Salem, IISCO and Durgapur steel plants. The company appears in a screener of stocks with a significant drop in TTM net profit.

  • Hero MotoCorp’s Q1FY24 net profit rises 20.3% YoY to Rs 710.1 crore and revenue grows by 4.8% YoY. Its EBITDA margin expands by 250 bps YoY to 13.8%, driven by softening commodity costs, cost-saving programs and strategic price hikes. Niranjan Gupta, CEO of the company, says, "The key economic indicators are trending in a positive direction, and a normal monsoon augurs well for demand, as we will soon enter the festive season.”

Riding High:

Largecap and midcap gainers today include Indian Overseas Bank (30.55, 13.36%), Gujarat Fluorochemicals Ltd. (2,916.10, 6.51%) and Supreme Industries Ltd. (4,071.35, 5.72%).

Downers:

Largecap and midcap losers today include Alkem Laboratories Ltd. (3,822.10, -7.71%), Torrent Power Ltd. (639.90, -4.71%) and Info Edge (India) Ltd. (4,460.80, -4.06%).

Volume Rockets

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

Top high volume gainers on BSE included Indian Overseas Bank (30.55, 13.36%), Kalyan Jewellers India Ltd. (202.40, 11.52%) and GMM Pfaudler Ltd. (1,590.10, 9.67%).

Top high volume losers on BSE were Apollo Tyres Ltd. (395.85, -8.27%), Alkem Laboratories Ltd. (3,822.10, -7.71%) and Polyplex Corporation Ltd. (1,195.45, -4.76%).

Supreme Industries Ltd. (4,071.35, 5.72%) was trading at 13.5 times of weekly average. Relaxo Footwears Ltd. (956.60, 0.94%) and Central Bank of India (32.95, 6.63%) were trading with volumes 8.4 and 8.1 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

32 stocks hit their 52-week highs,

Stocks touching their year highs included - 3M India Ltd. (29,350.00, 4.38%), AIA Engineering Ltd. (3,600.65, 0.37%) and Ashok Leyland Ltd. (187.10, 0.48%).

15 stocks climbed above their 200 day SMA including GMM Pfaudler Ltd. (1,590.10, 9.67%) and RHI Magnesita India Ltd. (724.25, 7.42%). 5 stocks slipped below their 200 SMA including Container Corporation of India Ltd. (677.95, -2.67%) and Pfizer Ltd. (3,965.25, -1.84%).

 
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The Baseline
10 Aug 2023, 06:21PM
Chart of the Week: HDFC AMC and Timken India top in promoters selling shares in the June quarter
By Akshat Singh

Promoters, being the driving force behind a company, have a clearer view of its operations, strategies, and potential. Their level of ownership reflects their confidence in the company's growth prospects. 

So high promoter holdings can signify strong ownership and confidence in the company., The high stake aligns their interests with shareholders and provides management stability. Fluctuations in promoter holdings can indicate potential risks, impacting market sentiment, and raising concerns about minority shareholders' interests. It can also signal strong buying interest from an outside investor, which compels promoters to sell some stock. So while promoter selling can be a negative signal for the company, it has to be viewed in context of the company’s overall performance and the size of the promoter’s current holding.

In this edition of Chart of the Week, we will analyze companies from a screener which shows the percentage QoQ change in promoter holdings.

Major sectors that appear in the screener are general industrials, banking & finance and automobile & auto components. Notable stocks include MTAR Technologies, HDFC Asset Management Company and Craftsman Automation.

We begin with the companies where promoters have the highest holdings, but are reducing their stake. Topping this list is HDFC Asset Management Company, which has a promoter holding of 52.6% in June 2023. The firm has seen its promoter holding reduce by 10.2 percentage points QoQ. HDFC AMC’s promoter Arbdn Investment divested a 10.2% stake and exited as a promoter just before the HDFC merger. This ended the JV it had formed with Housing Development Finance Corp to form HDFC AMC. The sold holdings have been acquired by foreign institutional investors (FIIs) and mutual Funds (MFs), which have invested 5.5% and 4.3% stakes respectively. A notable FII that invested is SmallCap World (0.4% stake), and MFs are SBI Mutual Fund (7% stake) and Nippon Life India (1.8% stake). 

Now, we move on to the auto components major, Craftsman Automation with a promoter holding of 55% in June 2023. Its promoter divested a 3.8% stake in the June quarter. The divestment was compensated by a 3.3% investment from FIIs. Among the major investors, Goldman Sachs (1.2% stake) stands out. This interest by FIIs in the stock aided its price to grow by 44.8% over the past quarter.

In the general industrial sector, RHI Magnesita India and Timken India have a promoter holding of 55.5% and 57.7% in June 2023.They have seen their promoter holdings decrease by 4.66 percentage points and 10.1 percentage points QoQ respectively. For RHI Magnesita, this was compensated by investments from FIIs and MFs, accumulating to 1.5 and 5.3 percentage points respectively. A major MF investor in this case is Axis Mutual Fund (0.2% stake). 

On the other hand, Timken India’s reduction in shareholding has primarily been compensated by investments from MFs, aggregating to 5.2%. Prominent MF investors include SBI Tax Advantage Fund (4.7% stake), Nippon Life (0.8% stake) and Aditya Birla Sun Life (1.2% stake).  

From the higher promoter holding companies, we move on to the ones with lower promoter holdings with falling stake. MTAR Technologies’ has a promoter holding of 39.1% and has been reduced by 7.5 percentage points in June 2023. Kalpataru Projects International also saw a dip of 6.1 percentage points. Some of the stakes sold by promoters were picked up by FIIs (1.2%) and MFs (3.9%). MFs that invested in the company are ICICI Prudential (1.4% stake) and Aditya Birla Sun Life (2.4% stake). 

Central Depository Services’ promoter holding stood at 15% in June 2023,  after a decrease of 5 percentage points QoQ. It has a single promoter, BSE (Bombay Stock Exchange). The promoter selling was compensated by an increase in MF stake by PGIM India Trustee (1.4% stake). According to Trendlyne’s Shareholding data, 47.9% stake of the company lies with the public. 

Unlike HDFC AMC, other banking & finance majors like PNB Housing Finance and Home First Finance Company India have comparatively lower promoter holdings of 28.2% and 30.2% as of June 2023. PNB’s promoter shareholding fell by 4.4 percentage points QoQ. In March 2023, the company raised Rs 2,494 crore through a rights issue, because of which the promoter shareholding went down to 28%. Similarly, Home First’s promoter shareholding fell by 3.3 percentage points QoQ. This was offset by FIIs and MFs purchasing 1.9% and 2.2% stakes respectively. Notable investors include Invesco India Tax Plan (1% Stake) among MFs and Government of Norway Pension Fund (3.2% Stake) among FIIs.

The sole representative of the software & services sector in our list, Coforge, saw its promoters reducing their holdings by 3.5 percentage points QoQ to 26.6%. This sale was made by its promoter, Baring PE, through a subsidiary, Hulst BV. This was balanced by MFs investing a 4.3% stake. The MFs that invested in the company are Aditya Birla Sun Life (0.1% stake), Motilal Oswal Flexi Cap Fund (2.7% stake), Mirae Asset (1.1% stake) and Invesco India Contra Fund (1.2% stake). Motilal Oswal maintains a ‘Neutral’ rating and says  that the company’s robust performance growth and profitable deal wins in FY24 have likely been factored into the stock price, leaving limited potential upside.  

Lastly, Sona BLW Precision Forgings’ promoter holding has declined by 3.2 percentage points QoQ to 29.8% in June 2023. As of December 2022, the company’s total promoter holding stands at 53.5%. But with Blackstone selling its entire stake of 20.5% in March 2023, the holding has been lowered to 33%. Again in May 2023, the company’s promoter, Aureus Investment, reduced its exposure by 3.2%. 

 
Trendlyne Marketwatch
Trendlyne Marketwatch
10 Aug 2023, 03:30PM
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
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
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
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
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%).