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Trendlyne Marketwatch
Trendlyne Marketwatch
21 Jun 2023
Market closes higher, KRChoksey keeps its 'Accumulate' rating on HDFC Asset Management

Trendlyne Analysis

Nifty 50 closed at 18,856.85 (40.2, 0.2%), BSE Sensex closed at 63,523.15 (195.5, 0.3%) while the broader Nifty 500 closed at 16,240.95 (41, 0.3%). Of the 1,969 stocks traded today, 893 showed gains, and 1,014 showed losses.

Indian indices closed in the green, with the Nifty 50 settling above the 18,850 mark. BSE Sensex touched an all-time high of 63,588.3 but fell from its day high and closed above the 63,500 mark. Lupin closed over 5.4% higher after the company received US FDA approval for its abbreviated new drug application (ANDA) for tiotropium bromide inhalation powder.

Nifty Midcap 100 closed in the green, outperforming the benchmark index. Nifty Media and Nifty Infra closed higher than Tuesday’s close. According to Trendlyne’s sector dashboard, Hardware Technology & Equipment was the top-performing sector of the day.

European indices traded flat or lower, except for Germany’s DAX index, which traded marginally higher. Major Asian indices closed mixed, in line with US index futures. Brent crude oil futures traded higher after closing in the red on Tuesday.

  • Relative strength index (RSI) indicates that stocks like Brightcom Group, Mazagon Dock Shipbuilders, L&T Finance Holdings and IDFC First Bank are in the overbought zone.

  • KR Choksey maintains its 'Accumulate' rating on HDFC Asset Management with a target price of Rs 1,970 per share. This indicates a potential upside of 4%. The broker cites the company's strong distribution network, nationwide presence, and digital platform as sales drivers. It expects the company's revenue to grow at a CAGR of 4.5% for FY22-25.

  • Thermax falls more than 3% and ranks low on Trendlyne's checklist with a score of 47.8%. The stock is in the 'Sell' zone and appears in a screener with improving annual net profit.

  • Shree Cement is falling following reports of the Income Tax Department conducting raids at five of the company's locations in Rajasthan.

  • Electronic components, IT software products and education industries gain more than 50% over the past three months.

  • Shriram Finance and Aether Industries reach their all-time highs of Rs 1,793.5 and Rs 1,104.5 per share, respectively. The former has risen 29.5% over the past month, while the latter rose 19.2% over the same period.

  • Blue Dart Express rises 7% in trade today as Motilal Oswal upgrades its rating to ‘Buy’ from ‘Neutral’, with a target price of Rs 8,040. The brokerage believes that the company will benefit from decreasing aviation turbine fuel (ATF) prices, aircraft additions, and its focus on improving market share.

  • Archean Chemical Industries rises as Societe Generale buys a 0.5% equity stake (6,42,365 shares) via an open market transaction amounting to Rs 32.8 crore at an average price of Rs 510 per share. Meanwhile, Norges Bank sells a 0.8% stake (9,50,000 shares) in the company at an average price of Rs 510.9 per share, amounting to a total of Rs 48.5 crore.

  • HMA Agro Industries’ Rs 480 crore IPO gets bids for 0.55X the available 60.5 lakh shares on offer on the second day of bidding. The retail investor quota gets bids for 0.38X of the available 30.3 lakh shares on offer.

  • Lupin hits a 52-week high at Rs 867.5 per share with US FDA approval for its abbreviated new drug application (ANDA) for tiotropium bromide inhalation powder. This generic equivalent of Sprivia HandiDaler has estimated FY23 US sales of $1,264 million, according to IQVIA. Lupin also signs an MoU with the Maharashtra government to diagnose and treat cardiovascular diseases and chronic obstructive pulmonary disease in Palghar.

  • Apollo Micro Systems, Birlasoft, Power Mech Projects and JTEKT India witness a significant surge in mutual fund holdings in the past month.

  • According to reports, 21.4 lakh shares (0.14% equity) of ICICI Prudential Life Insurance Co, amounting to Rs 120.4 crore, have changed hands in a large trade.

  • IRB Infrastructure Developers, IDFC, Aptus Value Housing Finance and Oil India are trading below their second support or S2 level.

  • ICICI Securities keeps its ‘Buy’ rating on Bharat Electronics and raises the target price to Rs 150 from Rs 140. This implies an upside of 19.6%. The brokerage states that the company is its top pick in the defence sector, given its involvement in upcoming major orders. It expects the firm’s growth to be driven by steady execution and order book expansion.

  • Piramal Enterprises rises over 12.5% and ranks high on Trendlyne's checklist with a score of 65.2%. The stock is currently in the 'Buy' zone and has 'Buy' ratings from 8 brokerage firms. It appears in a screener of stocks with decreasing provisions. 

  • JP Morgan maintains its ‘Overweight’ rating on United Spirits with a target price of Rs 960. The brokerage is optimistic that the company will deliver double-digit revenue growth and improve its profitability metrics.

  • Media stocks like Zee Entertainment Enterprises, Saregama India, Tips Industries, Sun TV Network andPravegare rising in trade. The broader media sector is also trading in the green.

  • Metal & mining stocks like JSW Steel, Hindalco Industries, Jindal Steel & Power, APL Apollo Tubes and National Aluminium co are falling in trade. Barring Coal India, all other constituents of the broader sectoral index, BSE Metal, are trading in the red.

  • Aptus Value Housing Finance India falls over 6% in trade today as 90.5 lakh shares (1.8% equity) of the company, amounting to Rs 234 crore, change hands in a large trade, according to reports.

  • SpiceJet is rising as it signs a settlement agreement with its aircraft lessor, Nordic Aviation Capital, to settle all liabilities for the Q400 aircraft leased by the company. SpiceJet will also induct three previously repossessed Q400 aircraft into its fleet.

  • Pidilite Industries rises as it launches joint venture units with Litokol SPA Italy and Tenax SPA. The newly formed entities, Pidilite Litokol Pvt Ltd (PLPL) and Tenax Pidilite Pvt Ltd (TPPL), will manufacture in Amod, Gujarat. The manufacturing units occupy an area of 27,000 sq ft for Litokol and 21,000 sq ft for Tenax, respectively, and are fully automated.

  • According to reports, 3.1 crore shares (8.3% equity) of Shriram Finance have changed hands in a block deal. Piramal Enterprises is the likely seller in this transaction.

  • Rail Vikas Nigam rises as it receives a letter of acceptance from Chennai Metro Rail for orders worth Rs 4,058.2 crore. The order involves the construction of 12 metro stations for the phase two project of Chennai Metro.

  • SBI Mutual Fund buys a 1.6% stake in HDFC Asset Management Co for Rs 624.5 crore and Small Cap Fund acquires a 1.7% stake for Rs 697.6 crore on Tuesday. Meanwhile, Abrdn Investment Management sells a 10.2% stake for Rs 4,079 crore on the same day.

Riding High:

Largecap and midcap gainers today include Shriram Finance Ltd. (1,734.35, 11.20%), JSW Energy Ltd. (274.30, 6.71%) and Lupin Ltd. (875.05, 5.44%).

Downers:

Largecap and midcap losers today include Polycab India Ltd. (3,418.35, -3.50%), HDFC Asset Management Company Ltd. (2,048.50, -2.68%) and One97 Communications Ltd. (872.95, -2.55%).

Volume Rockets

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

Top high volume gainers on BSE included Piramal Enterprises Ltd. (950.15, 13.32%), Shriram Finance Ltd. (1,734.35, 11.20%) and Aether Industries Ltd. (1,099.80, 9.53%).

Top high volume losers on BSE were Aptus Value Housing Finance India Ltd. (242.50, -8.90%), Home First Finance Company India Ltd. (766.05, -5.53%) and Heidelberg Cement India Ltd. (1,72.85, -0.14%).

Poonawalla Fincorp Ltd. (349.90, 2.56%) was trading at 9.7 times of weekly average. Blue Dart Express Ltd. (7,250.00, 7.54%) and Happiest Minds Technologies Ltd. (1,005.10, 6.34%) were trading with volumes 9.4 and 8.4 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

59 stocks made 52 week highs,

Stocks touching their year highs included - Ajanta Pharma Ltd. (1,509.95, 2.37%), Apollo Tyres Ltd. (419.45, 2.57%) and Balkrishna Industries Ltd. (2,476.40, 0.94%).

19 stocks climbed above their 200 day SMA including Piramal Enterprises Ltd. (950.15, 13.32%) and Blue Dart Express Ltd. (7,250.00, 7.54%). 10 stocks slipped below their 200 SMA including Aegis Logistics Ltd. (339.20, -2.42%) and Alkyl Amines Chemicals Ltd. (2,637.45, -2.23%).

 
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The Baseline
20 Jun 2023
COTW: The biggest wealth destroyers in the Nifty500
By Abdullah Shah

The Indian equity market has witnessed impressive growth over the past five years, with the benchmark Nifty 50 index rising by over 73%. However, not all stocks have fared well during this period. In this edition of the Chart of the Week, we take a look at companies that saw a significant decline in their share prices over the past five years, underperforming the index and destroying investor wealth. 

There are 26 Nifty 500 companies in the wealth destroyers screener, which looks for stocks with negative share price changes in the past five years as well as the past year. The banking & finance sector has the highest number (four) of wealth destroyers. These include Piramal Enterprises, Bandhan Bank, City Union Bank and Motilal Oswal Financial Services. 

The telecom and pharmaceuticals sectors come in second with three companies each. Vodafone-Idea, Indus Towers and Sterlite Technologies represent the telecom industry, while Sun Pharma Advanced Research, Natco Pharma and Biocon show up in the Pharmaceuticals sector.

Though the banking and finance sector has four companies in the screener, overall it has achieved a high 5-year return of 106.5%. The worst performers from this segment are Piramal Enterprises and Bandhan Bank, with share price declines of 66.9% and 54.8% respectively over the past five years. 

Piramal Enterprises’ share price fall can be attributed to investor dissatisfaction with the demerger of Piramal Pharma. The company saw net profit margins decline from 44% to 8% and operating margins drop by 10% during 2018-2022. Bandhan Bank, on the other hand, has underperformed due to a decrease of 200 basis points in its net interest margin between 2018 and 2023. The bank has struggled with bad loans while other banks have improved their asset quality. 

The telecom sector has risen by 133% in the past five years, but companies like Vodafone-Idea, Indus Towers, and Sterlite Technologies have shown poor performance. Jio's disruptive entry in 2018 with free or highly discounted plans, caused a 41% decline in ARPU for the sector between 2018 and 2020. 

Vodafone-Idea has witnessed a significant share price decline of 87.5% over the past five years due to its high debt of Rs 2,22,890 crore. Raising funds remains challenging for the company, given its  debt and falling market share in a capital-intensive sector. Indus Towers, which gets 40% of its total revenue from Vodafone-Idea, has also seen its share price fall sharply in the past five years. Similarly, share price of Sterlite Technologies, a telecom equipment manufacturer, has fallen by 49.2% due to the closure of its Tamil Nadu plant in 2018 following protests citing health hazards.

The pharmaceutical sector has grown by 113.7% in the past five years, outperforming the Nifty 50 index. However, Sun Pharma Advanced Research Company's value declined by 54% over the same period due to decreasing net profit margins and widening losses by 13% from FY18 to FY23, reaching Rs 222.6 crore. 

Similarly, Graphite India, a General Industrials company, experienced a decline of 51.8% in five years as its overall capacity utilisation dropped from 90% in Q3FY22 to 42% in Q3FY23. This drop was due to the closure of a German electrode plant and weak global demand.

A favourite sector for investors over the past five years has been  software and services, which delivered an impressive growth of 141.2%. However, Quess Corp stands out as the sole Nifty500 company from the sector with a significant decline of 65.5%. The employment platform suffered challenges during the pandemic, leading to a 74% drop in its stock value. It reached an all-time low in March 2020. Quess Corp faced additional challenges in 2021 as the Income Tax department made allegations of a Rs 880 crore claim against the company. 

The realty sector also witnessed remarkable growth of 706.3% in the past five years, driven by increased demand for coworking and residential properties. In contrast, Indiabulls Real Estate experienced a sharp decline of 63.2% during the same period.  This decline came from shrinking operating profit margins and a significant net loss of Rs 608.4 crore in FY23, compared to a net profit of Rs 2372.8 crore in FY18. On May 9, 2023, the shares of Indiabulls Real Estate plummeted nearly 20% in trade after the company disclosed that the merger of Nam Estates Private Limited and Embassy One into the company had been withheld by the Chandigarh Bench of the National Company Law Tribunal (NCLT). 

In the media sector, which experienced an overall growth of 166.8% in five years, Zee Entertainment stands out with a decline of 65.2%. The company has been dogged over the years by controversy and scandal. In 2019, Zee faced allegations of links with Nityank Infrapower and Multiventures, which were being investigated by SFIO for deposits exceeding Rs 3,000 crore after demonetisation. This resulted in a 26% drop in Zee’s stock. In February 2023, IndusInd Bank filed a plea against Zee due to non-payment of a Rs 83.1 crore debt, leading to the withholding of the Sony deal. In May 2023, allegations surfaced regarding fund diversion to Essel Group's gold refinery. 

 
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The Baseline
20 Jun 2023
Five analyst picks this week
By Abhiraj Panchal
  1. Hero MotoCorp: Motilal Oswal maintains its ‘Buy’ rating on this two-wheeler manufacturer and increases the target price to Rs 3,500 from Rs 3,100. This implies an upside of 25%. Analysts Jinesh Gandhi, Amber Shukla and Aniket Desai believe that the company is well-placed to benefit from the recovery in domestic demand for two-wheelers, particularly in the 100cc motorcycle segment, which is its core strength. 

They also note that the firm is less vulnerable to the impact of electric vehicles (EVs), as scooters, the category where EVs have gained traction, make up just 8% of its volumes. 

Gandhi, Shukla and Desai highlight the firm’s focus on increasing its penetration in the 100cc motorcycle segment, where it already has a market share of 80%, by attracting first-time buyers through retail financing options. They also like the company’s plans to regain its lost market share in the 125cc segment through product portfolio expansion. The analysts expect the bike maker’s revenue to grow at a CAGR of 11.4% over CY23-25. 

  1. KPR Mill: Sharekhan keeps its ‘Buy’ rating on this textiles company and raises the target price to Rs 800 from Rs 685, implying an upside of 19.6%. Analysts at Sharekhan believe that the firm’s integrated business model and capacity expansion plans will drive growth and improve EBITDA margin in the coming quarters, as demand for sugar textiles and sugar recovers. They also expect strong margin expansion in the garment business on the back of the reduction in cotton prices and an enhanced product mix. They add, “The China+1 strategy, potential free trade agreement (FTA) with the UK, and increasing opportunities in the US market provide a scope of consistent growth for its high margin garment business.”

The analysts expect the garments segment to be the main driver of growth in the medium term, with an order book of Rs 1,000 crore for the next 6 months. They also anticipate the firm to benefit from the gradual demand recovery in Europe. The analysts project this textile manufacturer’s net profit to grow at a CAGR of 27% over FY23-25.  

  1. UltraTech Cement: HDFC Securities maintains a 'Buy' rating on this cement and cement product company with a target price of Rs 9,305. This signals a potential upside of 12.9%. Analysts Rajesh Ravi and Keshav Lahoti hold a positive outlook, given its robust volume growth fuelled by escalating demand. With its recent expansions and strong distribution network, the analysts are confident that the company is well-positioned to meet the growing demand in the market.

The analysts also anticipate improved margins for the company, supported by the significant decline in fuel prices, which will result in reduced operational expenses. They expect the company to sustain accelerated growth in the ready-mix concrete sector, with an increasing plant count at a CAGR of 28% since Q4FY20. As of March 2023, UltraTech Cement has successfully expanded to 231 plants and intends to double this figure. The analysts further project that the company will transition into a net cash position by FY25.

  1. Sundaram Finance: Axis Securities maintains a ‘Buy’ call on this auto-finance company with a target price of Rs 3,015, indicating an upside of 15.4%. In Q4FY23, the company reported a profit of Rs 433.2 crore (up 27.4% YoY), beating Axis’ estimate by 13.8%. But the company missed the brokerage’s net interest income estimate by 4.5%. 

Analysts Prathamesh Sawant, Bhavya Shah and Dnyanada Vaidya say, “We continue to have a positive outlook on Sundaram Finance, given that it’s one of the industry leaders in the vehicle finance segment, and its consistent delivery of superior return on assets.” They believe that the growth prospects in construction and agricultural equipment remain bright, and the recovery in commercial vehicles (CV) was strong throughout FY23. 

The analysts say that Sundaram Finance is well-positioned to maintain its growth momentum due to factors such as good disbursement growth aided by rising CV demand, moderation in cost-income ratio, amiable credit cost aiding improvement in asset quality, and adequate capital.

  1. KEC International: ICICI Securities reiterates its ‘Buy’ call on this heavy electrical equipment manufacturer with a target price of Rs 664. This indicates an upside of 18.4%. Analysts from ICICI, Ashwani Sharma, Mohit Kumar, Bharat Kumar Jain and Nikhil Abhyankar, who attended the company’s annual investor day, say that the management is confident of achieving a top line of Rs 20,000 crore and is cherry-picking orders to focus on profitability. 

The analysts remain optimistic as the company has already secured order inflows of Rs 2,400 crore, which account for approximately 10% of its guidance of Rs 25,000 crore in FY24. The management has also indicated a strong order pipeline worth Rs 1 lakh crore. 

The analysts say, “With a robust orderbook and order pipeline, stability in commodity prices and an improving supply chain, we expect execution to pick up over FY24, followed by improvement in margins.

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

(You can find all analyst picks here)

 
Trendlyne Marketwatch
Trendlyne Marketwatch
20 Jun 2023
Market closes higher, HMA Agro Industries’ IPO gets bids for 0.32X of shares

Trendlyne Analysis

Nifty 50 closed at 18,816.70 (61.3, 0.3%), BSE Sensex closed at 63,327.70 (159.4, 0.3%) while the broader Nifty 500 closed at 16,199.95 (57.8, 0.4%). Of the 1,977 stocks traded today, 1,115 were on the uptick, and 794 were down.

Indian indices extended their gains in the afternoon session, with the Nifty 50 hovering above the 18,800 mark. The volatility index, Nifty VIX, dropped below 12 at the close. On Monday, IndiGoordered 500 Airbus A320 planes valued at around $50 billion.

Nifty Smallcap 100 and Nifty Midcap 100 closed in the green, following the benchmark index. Nifty IT and Nifty Auto closed sharply higher than Monday’s closing levels. According to Trendlyne’s sector dashboard, hardware technology & equipment emerged as the top-performing sector of the day with a rise of over 3%.

Most European indices trade in the red. US indices futures decline as investors await insights on the extent of potential rate hikes from Fed Chair Jerome Powell's congressional hearing scheduled for later today.

  • Cyient beats Sonata Software in YoY revenue growth, price-to-book value, quarterly price change and FII holdings. But it lags in YoY net profit growth, one-year price change, Trendlyne’s durability score and PE ratio.

  • According to reports, Nomura maintains its ‘Buy’ rating on Britannia Industries with a target price of Rs 5,425 after visiting the firm’s Ranjangaon plant in Maharashtra. The brokerage remains positive about the company’s prospects due to its strong pipeline of new launches, increased diary capacity, and margin improvement.

  • Thyrocare Technologies rises over 6% in trade today, as 29.11 lakh shares (5.51% equity) of the company, amounting to Rs 142.14 crore, change hands, according to reports.

  • Healthcare services stocks like Dr. Lal Pathlabs, Metropolis Healthcare, Vijaya Diagnostic and Thyrocare Technologies are rising in trade. The broader healthcare services industry is also trading in the green.

  • Affle (India), Happiest Minds Technologies, Piramal Enterprises and Tejas Networks are trading above their third resistance or R3 levels, despite Nifty 50 trading in the red.

  • HMA Agro Industries’ Rs 480 crore IPO gets bids for 0.32X the available 60.5 lakh shares on offer on the first day of bidding. The retail investor quota gets bids for 0.20X of the available 30.3 lakh shares on offer.

  • Healthcare equipment & supplies, commercial services & supplies and retailing sectors rise by more than 12% over the past month.

  • IT software product stocks like Intellect Design Arena, RateGain Travel Technologies, Aurionpro Solutions and Subex are rising in trade. The broader IT software products industry is also trading in the green.

  • JP Morgan maintains its 'Overweight' rating on Bank of Baroda with a target price of Rs 230. The brokerage highlights Bank of Baroda's rapid public sector transformation and notes that the bank's retail loan growth is faster than that of private banks, indicating an improvement in market share.

  • ITI rises as it signs a tripartite MoU with Telecommunications Consultants India (TCIL) and Centre for Development of Telematics (CDOT) to synergize R&D initiatives in telecommunications, with a focus on telecommunication products and smart city services. It appears in a screener of stocks with strong momentum.

  • Amber Enterprises rises more than 10% and ranks high on Trendlyne's checklist with a score of 65.2%. The stock is in the 'Buy' zone and has 'Buy' ratings from 10 out of 17 brokerage firms. It appears in a screener of stocks with upgrades in broker recommendations.

  • Subros rises 20% to reach a five-year high of Rs 434.1 following the Ministry of Roads and Highways' directive to equip all trucks with an AC driver compartment. This development places Subros in a screener of stocks with low debt.

  • Sula Vineyards is rising as Kotak Institutional Equities initiates coverage on the stock with an ‘Add’ rating and a target price of Rs 500. The brokerage believes the company can achieve re-rating if it continues to outperform its peers in the alcoholic beverage space and maintain its market share in the wine market.

  • Pidilite Industries, Avenue Supermarts, Nestle India, Tata Motors and Kajaria Ceramics outperform the Nifty 500 index over a five-year period.

  • SBI Mutual Fund, under various schemes, sells a 0.1% stake in Triveni Turbine on Friday. It now holds a 6.7% stake in the company.

  • Axis Direct maintains its ‘Buy’ rating on Rites and raises the target price to Rs 450 from Rs 410. This implies an upside of 15.4%. The brokerage believes that the firm’s healthy order book, efficient execution prowess and clean balance sheet will enable it to benefit from the Centre’s increased investment in infrastructure.

  • Fertilizer stocks like The Fertilizers & Chemicals Travancore, Gujarat Narmada Valley Fertilizers & Chemicals andGujarat State Fertilizers & Chemicals are rising in trade. The broader fertilizers sector is also trading 2.7% higher than its open.

  • HDFC Asset Management Corporation rises as Abrdn Investments plans to exit as a promoter by selling its 10.2% equity stake (2,17,00,000 shares) in an offer priced between Rs 1,800 and Rs 1,892.5.

  • Jefferies initiates coverage on J B Chemicals & Pharmaceuticals with a ‘Buy’ rating and a target price of Rs 2,680. The brokerage believes that synergistic acquisitions and targeted new launches will help the company outperform industry growth.

  • HMA Agro Industries raises Rs 144 crore from anchor investors ahead of its IPO by allotting 24.6 lakh shares at Rs 585 per share. Investors include Craft Emerging Market Fund PCC, Minerva Ventures Fund, Forbes EMF, Coeus Global Opportunities Fund and Radiant Global Fund.

  • InterGlobe Aviation hits an all-time high of Rs 2,490 as it places an order worth $50 billion with European aircraft manufacturer Airbus SE for 500 aircraft.

  • IGSEC Heavy Engineering is rising as it starts commercial production of ethanol in its wholly owned subsidiary's plant, Saraswati Sugar Mills Limited. They have also increased the production capacity of their Ethanol Plant from 100 kiloliters per day to 160 kiloliters per day. It appears in a screener of stocks with strong momentum.

  • Timken India falls over 6% today as 84.5 lakh shares (11% equity) of the company, amounting to Rs 2,629 crore, change hands, according to reports. Its parent company, Timken Singapore, is likely the seller in this transaction.

  • IIFL Securities falls as SEBI bans the company from onboarding new clients for two years over the misuse of client funds. The market regulator states that the company has violated rules regarding the segregation of funds and securities of clients between 2011 and 2017. In response, the firm is preparing to challenge the order in the Securities Appellate Tribunal.

  • ITC finalises a deal to acquire an additional 857 compulsorily convertible preference shares of Rs 10 each from Mother Sparsh. This acquisition will result in ITC's ownership stake in Mother Sparsh increasing from 22% to 26.50%.

  • HDFC Bank enters into a scheme of amalgamation to sell a 90% stake in its subsidiary, HDFC Credila Financial Services, to a consortium of Baring Private Equity Asia and ChrysCapital. The deal is valued at Rs 9,060.4 crore, with HDFC Credila receiving an investment of Rs 2,003.6 crore as part of the transaction. Following the completion of the deal, HDFC Bank will retain a 10% stake in the company.

Riding High:

Largecap and midcap gainers today include HDFC Asset Management Company Ltd. (2,104.90, 11.23%), Shriram Finance Ltd. (1,559.65, 6.11%) and Balkrishna Industries Ltd. (2,453.45, 4.54%).

Downers:

Largecap and midcap losers today include Zee Entertainment Enterprises Ltd. (173.30, -6.45%), Container Corporation of India Ltd. (636.35, -3.72%) and Max Healthcare Institute Ltd. (584.05, -2.93%).

Crowd Puller Stocks

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

Top high volume gainers on BSE included HDFC Asset Management Company Ltd. (2,104.90, 11.23%), Jamna Auto Industries Ltd. (105.35, 9.40%) and Amber Enterprises India Ltd. (2,278.25, 8.11%).

Top high volume losers on BSE were Timken India Ltd. (3,250.80, -6.82%) and Archean Chemical Industries Ltd. (531.00, -4.38%).

ITI Ltd. (110.85, 1.93%) was trading at 10.5 times of weekly average. Central Bank of India (28.95, 5.08%) and UTI Asset Management Company Ltd. (690.45, 0.52%) were trading with volumes 8.4 and 5.5 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

32 stocks overperformed with 52-week highs, while 1 stock was an underachiever and hit its 52-week low.

Stocks touching their year highs included - Ashok Leyland Ltd. (167.25, -0.42%), CCL Products India Ltd. (653.50, -0.96%) and Cummins India Ltd. (1899.50, 1.24%).

Stock making new 52 weeks lows included - Zee Entertainment Enterprises Ltd. (173.30, -6.45%).

16 stocks climbed above their 200 day SMA including HDFC Asset Management Company Ltd. (2,104.90, 11.23%) and Saregama India Ltd. (374.65, 10.06%). 8 stocks slipped below their 200 SMA including Jindal Worldwide Ltd. (324.75, -3.03%) and Vodafone Idea Ltd. (7.40, -2.63%).

 
Trendlyne Marketwatch
Trendlyne Marketwatch
19 Jun 2023
Market closes lower, ICICI Sec lowers rating on Prince Pipes & Fittings to ‘Add’ from ‘Buy’

Trendlyne Analysis

Nifty 50 closed at 18,755.45 (-70.6, -0.4%), BSE Sensex closed at 63,168.30 (-216.3, -0.3%) while the broader Nifty 500 closed at 16,142.15 (-39.3, -0.2%). Of the 2,005 stocks traded today, 872 were in the positive territory and 1,058 were negative.

Indian indices closed in the red, with the Indian volatility index, Nifty VIX, rising by over 3.6%. The benchmark Nifty 50 index fell over 70 points and closed below the 18,800 mark. Shriram Finance closed nearly 5% higher after 99.2 lakh shares (2.65% equity) amounting to Rs 1,390 crore, changed hands in a block deal.

Nifty Smallcap 100 and Nifty Midcap 100 closed higher, outperforming the benchmark index. Nifty Pharma and Nifty IT closed higher than Friday’s close. According to Trendlyne’s sector dashboard, Diversified was the top-performing sector of the day.

Major Asian indices closed in the red, except for Australia’s ASX All Ordinaries index, which closed higher. European indices traded in the red, despite the US indices futures trading in the red. US markets will remain closed today due to Juneteenth National Independence Day. Brent crude oil futures recovered from their day low and traded marginally higher on a volatile day of trade.

  • Money flow index (MFI) indicates that stocks like HEG, Poly Medicure, One97 Communications and Home First Finance are in the overbought zone

  • Five-Star Business Finance rises 9% in trade, aiding it in appearing in a screener of stocks near their 52-week highs. According to Trendlyne's Forecaster, the stock has a consensus recommendation of 'Strong Buy' from three analysts. It has also risen 20.3% over the past month, enabling the company to be featured in a screener of stocks that have been overbought by the money flow index (MFI).

  • Tata Consultancy Services, HDFC Bank,ICICI Bank and Hindustan Unilever have TTM PE ratios that trade above their respective industries by 0.1, 1.1, 0.5, and 0.7 points, respectively.

  • IIFL Finance is rising as DSP Mutual Fund purchases a 1.3% equity stake (50,00,000 shares) in the company. The deal has been executed at an average price of Rs 500 per share.

  • The Centre announces the sale of 92.44 lakh shares (0.15% equity) of Coal India to eligible employees of the company through an offer for sale (OFS). The employee OFS is scheduled to open on Wednesday.

  • Hindustan Petroleum rises as it wins a major long-term contract from ONGC Petro additions (OPaL). HPCL has secured the contract through competitive bidding against a tender by OPaL. Under this contract, the company has agreed to supply OPaL with 13.5 trillion British thermal units (Btu) of Natural Gas from October 2023 to May 2026.

  • Global oil prices drop by more than 1% amid concerns over China's faltering post-Covid recovery. Brent crude oil price falls to $75.94 per barrel.

  • ICICI Securities downgrades its rating on Prince Pipes and Fittings to ‘Add’ from ‘Buy’ with a target price of Rs 703. This implies an upside of 4.7%. The brokerage cites the stock price run-up in the past three months for lowering its rating on the firm. However, it maintains a positive outlook on the company due to its comprehensive product portfolio, focus on expanding distribution and emphasis on branding.

  • Aavas Financiers is rising despite Small Cap World Fund offloading a 0.9% equity stake (7,08,978 shares) in the company at an average price of Rs 1,350 per piece

  • Astra Microwave Products, Kalpataru Projects International, Mankind Pharma and Engineers India witness an increase in mutual fund holdings in the past month.

  • PSU banks like Central Bank of India, Bank of Baroda, Bank of India, UCO Bank and Punjab & Sind Bank are rising in trade. Barring State Bank of India, all other constituents of the broader sectoral index, Nifty PSU Bank, are trading in the green.

  • CreditAccess Grameen rises more than 5% and ranks high on Trendlyne's checklist with a score of 56.5%. The stock is in the 'Strong Buy' zone and has 'Buy' ratings from 11 out of 12 brokerage firms. It appears in a screener of stocks with strong annual EPS growth.

  • Kotak Institutional Equities upgrades its rating on Jindal Steel and Power to ‘Buy’ from ‘Reduce’ and raises the fair value by 27.6% to Rs 740. The brokerage says that the company is best placed among its peers in terms of risk-reward ratio.

  • Healthcare services companies like Dr. Lalpath Labs, Metropolis Healthcare, Vijaya Diagnostic Centre, Thyrocare Technologies and Kovai Medical Center and Hospital are rising in trade. The broader healthcare services industry is also trading in the green.

  • Sharekhan maintains its ‘Buy’ rating on Can Fin Homes and raises the target price to Rs 880 from Rs 720. This implies an upside of 16.8%. Can Fin Homes remains the brokerage’s top pick among housing finance companies due to its healthy loan growth, stable asset quality and improving margins. The brokerage expects the company’s net profit to grow at a CAGR of 18.4% over FY23-25.

  • Dr. Reddy's Laboratories is rising as the US FDA concludes its good market practice (GMP) inspection of the company's active pharmaceutical ingredient (API) facility in Bollaram, Hyderabad. During the inspection from June 12 to June 16, no observations have been made.

  • Gufic BioSciences touches a new 52-week high today as it receives approval from the National Medical Products Administration (NMPA), China, for its product Prilocaine (API). The company believes this approval will help the expansion of the product in China and enable the exploration of the Chinese market. It appears in a screener of stocks with strong momentum.

  • Reports suggest that 99.2 lakh shares (2.65% equity) of Shriram Finance, amounting to Rs 1,390 crore, change hands in a block deal. TPG India Investment Fund is the likely seller in this transaction.

  • Kalyan Jewellers rises as Nomura India Investment Fund Mother Fund, Franklin Templeton Mutual Fund and BNP Paribas Arbitrage buy a 3.3% equity stake (3,39,55,978 shares) in the company at an average price of Rs 113.1. Meanwhile, Highdell Investment sells a 6.2% equity stake (6,41,02,561 shares) at the same price.

  • JP Morgan highlights the significant loan growth in the NBFC sector, surpassing that of banks. The brokerage adds that both domestic and foreign investors have allocated less capital to this segment. It maintains Bajaj Finance and L&T Finance as its top picks.

  • Castrol India is rising as it signs an agreement with Mahindra Insurance Brokers to sell eligible vehicle insurance policies through Castrol Auto Service workshops. The workshops will also be able to register as cashless claim sites with other insurance companies.

  • Mohnish Pabrai buys a 2.07% stake in Edelweiss Financial Services on June 8, 2023. He now holds a 9.09% stake in the company.

  • Adani Enterprises' subsidiary, Adani Digital Labs, signs an agreement to acquire a 100% equity stake in Stark Enterprises, commonly known as Trainman. Trainman is an online platform for train booking and information services.

  • CDPQ sells a 0.9% stake in Piramal Pharma for approximately Rs 99.8 crore in a bulk deal on Friday, while VTIAX picks up a 0.5% stake for Rs 58.7 crore.

Riding High:

Largecap and midcap gainers today include Jindal Steel & Power Ltd. (574.50, 5.57%), Shriram Finance Ltd. (1,469.85, 4.88%) and FSN E-Commerce Ventures Ltd. (150.45, 4.23%).

Downers:

Largecap and midcap losers today include Adani Enterprises Ltd. (2,401.40, -4.31%), CG Power and Industrial Solutions Ltd. (364.50, -3.34%) and Tata Motors Limited (DVR) (311.30, -2.89%).

Movers and Shakers

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

Top high volume gainers on BSE included Alok Industries Ltd. (17.00, 10.39%), Mangalore Refinery And Petrochemicals Ltd. (78.70, 9.61%) and Five-Star Business Finance Ltd. (650.20, 8.42%).

Top high volume losers on BSE were Adani Enterprises Ltd. (2,401.40, -4.31%), CG Power and Industrial Solutions Ltd. (364.50, -3.34%) and Chalet Hotels Ltd. (418.65, -2.16%).

Krishna Institute of Medical Sciences Ltd. (1,702.00, 4.24%) was trading at 12.4 times of weekly average. CreditAccess Grameen Ltd. (1,272.65, 8.10%) and Borosil Renewables Ltd. (548.75, 3.63%) were trading with volumes 8.2 and 7.5 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

47 stocks made 52-week highs,

Stocks touching their year highs included - Abbott India Ltd. (23,133.00, 1.86%), Ashok Leyland Ltd. (167.95, 2.16%) and Aurobindo Pharma Ltd. (678.05, -0.67%).

16 stocks climbed above their 200 day SMA including Alok Industries Ltd. (17.00, 10.39%) and Infibeam Avenues Ltd. (15.85, 4.62%). 7 stocks slipped below their 200 SMA including Vodafone Idea Ltd. (7.60, -2.56%) and Kotak Mahindra Bank Ltd. (1,824.55, -1.77%).

 
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The Baseline
16 Jun 2023
Five Interesting Stocks Today
  1. TVS Motor: This auto manufacturer hit its all-time high of Rs 1,384 this week following the announcement that its TVS Motor (Singapore) arm has acquired an additional 25% stake in Swiss E-Mobility Group (Holding) AG (SEMG). The total cost of the acquisition comes to around Rs 180 crore (517.36 Swiss francs per share for 38,217 equity shares).

SEMG is an electronic bike platform that sells its own branded e-bikes. To improve its presence in the electronic vehicle (EV) market, TVS Motor had previously purchased a 75% stake in SEMG in January 2022. With the recent acquisition, TVS now owns 100% of SEMG, turning it into a wholly owned step-down subsidiary. 

According to a business update, TVS Motor’s May 2023 wholesales of EV TVS iQube electric stand at 17,953 units (up almost 7x YoY) and 97 thousand units (up almost 10x) in FY23. The management says, “TVS iQube has a healthy booking pipeline of over 30,000 units and we are confident of continued improvement of supplies in the coming months.” According to reports, TVS held a market share of 13.8% among the top 20 EV two-wheeler manufacturers in April 2023.

Axis Direct is optimistic about TVS Motor and has increased its target price to Rs 1,450 due to its promising future EV plans, among other reasons. The company also appears in a screener for stocks with broker price upgrades in the past month. According to the brokerage, TVS will be launching EVs in different customer segments in the next three quarters.

  1. APL Apollo Tubes: This iron & steel products manufacturer rose by 8% over the past week till Friday, driven by the street’s optimistic outlook on the business. The company is expected to be a major beneficiary of the Centre’s increased focus on infrastructure spending, with rising demand for structural steel products across sectors. The company’s current PE ratio is 57.3, while its forward PE is 41.5. 

Motilal Oswal believes that the company is well-positioned to capitalise on the growing demand, thanks to its market leadership, product portfolio and extensive distribution networks. It expects the firm to gain market share in the coming quarters. According to Trendlyne’s Forecaster, the consensus recommendation on the stock from 13 analysts is ‘Buy’. The stock also shows up in a screener for companies with broker target price revisions and recommendation upgrades over the past three months. 

The management aims to increase its sales volumes to 5 million tonnes in FY26, up from 2.28 million tonnes in FY23. It plans to achieve this capacity expansion through organic means, and become debt-free by the end of FY24. In an interview, Deepak Goyal, CFO of the company, said that 75% of the 5 million tonnes sales volume target will consist of high-margin value-added products. Given the improving product mix, the company expects its EBITDA per tonne to rise from Rs 4,481 in FY23 to Rs 5,000 by FY24 and exceed Rs 6,000 by FY25.

  1. Tata Communications: This telecom services company has risen by 15.5% over the past week till Friday, and shows up in a screener for stocks that have grown by more than 20% over the past month. The positive sentiment towards the stock rose after the firm’s Institutional Investors & Analysts Day 2023, held on June 7. 

The management has announced that it aims to double its data revenue to Rs 28,000 crore by FY27, driven by a projected annual growth rate of 35% in its digital services segment. The company expects this  growth to be led by the revenue contribution from million-dollar accounts rising from 35% to over 50%, and a higher share of digital platform services in total revenue, anticipated to rise from 32% to over 50% in FY27. 

The company is also gaining traction in international markets on the back of its increased manpower and successful execution of projects. The management is making strategic acquisitions to improve its presence in international markets. The company’s subsidiary, Tata Communications (Netherlands), completed the acquisition of the US-based video production and distribution company, Switch Enterprises, for $58.8 million (around Rs 486 crore) in an all-cash deal on May 1. This acquisition is expected to enhance Tata Communications’ live production capabilities, while providing Switch’s customer base with global reach.

With these plans in motion, the management anticipates a surge in revenue from international markets in the coming quarters and it maintains an EBITDA margin guidance of 23-25% over the next three years. ICICI Securities remains bullish about the firm’s future plans, given its robust order wins and international business growth.

  1. One97 Communications Ltd (PayTM): Thissoftware and services firm has seen its stock price rise by 15.9% in the past week, reaching its 52-week high, according to Trendlyne’sTechnicals. The company  is involved in payment services and loan disbursement. It reported narrowed losses of Rs 170 crore in Q4FY23, compared to Rs 760 crore in Q4FY22. With 52% YoY growth, the company's revenue from operations reached Rs 23,350 crore, driven by higher gross merchandise value and increased loan disbursements. The margin growth was led by an increase in payment processing charges and a cut down on promotional cash-back incentives. The number of merchants paying for device subscriptions increased by 17% QoQ to 6.8 million in Q4FY23, and grew to 7.5 millionin May 2023. The firm plans to add 1 million subscription-based devices per quarter.

Paytm has partnered with SBI cards and NPCI to launch credit cards, adding another revenue stream to the firm. Paytm’s expected credit loss for postpaid service declined from 1.2% in Q3FY23 to 0.9% in Q4FY23. The management has guided net payments margins to remain around 8 bps of the gross merchandise value. Paytm’s CEO Vijay Shekhar Sharma has stated that the firm’s top priority is to achieve positive free cash flow in the near term. The CEO is also bullish on artificial general intelligence to enhance business efficiency, although he has yet to give details on AI implementation.

According to ICICI Securities, Paytm is projected to increase its revenue by 32% CAGR and net payment margins by 27% CAGR between FY23-25. The growth in revenue will be driven by increased loan disbursements and higher cloud and commerce revenue. The brokerage has estimated adjusted EBITDA to turn positive (Rs 8,376 crore) in FY24 and maintains a ‘Buy’ rating with a target price of Rs 1,055. 

  1. KEC International: This heavy electric equipment company rose over 2% on Wednesday and hit an all-time high of Rs 586.2 after winning new orders worth Rs 1,373 crore across various businesses. The company’s railway business, which contributes 21% to the total revenue, has won an order for signalling and telecommunication, for an automatic block signalling (ABS) system, while its Transmission & Distribution (T&D) business bagged an order for the supply of towers in India and the USA, among others. 

According to the management, the company’s expansion into the ABS segment aligns with the Centre’s focus on increasing the capacity, speed and safety of the Indian Railway network.

Prabhudas Lilladher and Nomura are optimistic about the company’s long-term growth prospects due to its strong order book and healthy execution. In FY23, KEC’s order inflow went up 30% to Rs 22,378 crore, while its order book stood at Rs 30,553 crore. However, Sharekhan has downgraded its rating on the stock to ‘Hold’ from ‘Buy’, with a target price of Rs 555, as it expects limited gains from the current valuations. According to the brokerage, the company’s margins were below its estimates in H2FY23. 

The consensus recommendation on the company from 22 analysts is ‘Buy’, with 12 suggesting a ‘Strong Buy’ and five recommending a ‘Buy’. However, KEC International is currently in the ‘Strong Sell’ zone due to its current PE being significantly higher than its historical PE ratios. 

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
16 Jun 2023
Market closes higher, ICICI Securities maintains its ‘Buy’ rating on KEC International

Trendlyne Analysis

Nifty 50 closed at 18,826.00 (137.9, 0.7%) , BSE Sensex closed at 63,384.58 (467.0, 0.7%) while the broader Nifty 500 closed at 16,181.45 (123.2, 0.8%). Of the 1,979 stocks traded today, 1,187 were on the uptick, and 712 were down.

Indian indices extend gains from the afternoon session and close in the green, with Nifty 50 hovering above the 18,800 mark. The volatility index, Nifty 50 VIX, drops below 11 at the close.

Nifty Smallcap 100 and Nifty Midcap 100 closed in the green, following the benchmark index. Nifty Bank and Nifty Media closed sharply higher than Thursday’s closing levels. According to Trendlyne’s sector dashboard, retailing emerged as the top-performing sector of the day with a rise of over 2.6%.

Most European indices trade in the green. US indices futures trade higher indicating a positive start. Major global banks like J. P. Morgan, UBS and Standard Chartered have cut China’s GDP growth forecast for 2023 from 5.5%– 6.0% to 5.0%– 5.5% range.

  • Relative strength index (RSI) indicates that stocks like Dixon Technologies (India), Olectra Greentech,Tanla Platformsand Brightcom Group are in the overbought zone.

  • Route Mobile and Exide Industries hit their 52-week highs of Rs 1,597 and Rs 217 respectively. Route Mobile has risen 15.3% in the past month, while the other increased by 12.8%.

  • Capri Global Capital falls more than 6.5% and ranks low on Trendlyne's checklist with a score of 43.5%. The stock is in the 'Strong Sell' zone and appears in a screener with no promoter pledge.

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

  • ICICI Securities maintains its ‘Buy’ rating on KEC International and raises the target price to Rs 664 from Rs 590. This implies an upside of 20.3%. The brokerage expects the company’s order execution to pick up in FY24, driven by a robust order book, stability in commodity prices and an improving supply chain. It anticipates the firm’s revenue to grow at a CAGR of 15% over FY23-25.

  • Reports suggest that SoftBank may sell small stakes in One97 Communications (Paytm) and Zomato over the next few sessions. The investment bank holds around 11% and 3.4% stakes in Paytm and Zomato respectively.

  • Bajaj Auto is trading below its third support or S3 level despite the market trading in the green.

  • Media Stocks like Zee Entertainment Enterprises, Network 18 Media & Investments, Saregama India and TV18 Broadcast are rising in trade. The broader media sector is also trading in the green.

  • Triveni Engineering & Industries' annual return on equity (RoE) stands at 67.2% in FY23, rising 54.6 percentage points over the past five years.

  • Angel One, Fine Organic Industries, Aditya Birla Capital and Brightcom Group outperform their industries in terms of annual growth and capital returns.

  • Shipping companies like Mazagon Dock Shipbuilders, Great Eastern Shipping Co, Garden Reach Shipbuilders and Shipping Corp of India are rising in trade. The broader shipping industry is also trading in the green.

  • Macquarie downgrades its rating on Mphasis to ‘Underperform’ from ‘Neutral', but maintains ‘Outperform’ on Mastek. The brokerage says Q1FY24 will be a weak quarter for IT companies due to the possible impact of a recession in the US.

  • Vedant Fashions, Coforge, Crompton Greaves Consumer Electricals and Affle (India) witness an increase in mutual fund holdings in the past month.

  • Retailing, healthcare equipment & suppliesand general industrials sectors rise more than 4% over the past week.

  • Axis Direct maintains its ‘Buy’ rating on Sundaram Finance and raises the target price to Rs 3,015 from Rs 2,605. This implies an upside of 16.2%. The brokerage remains positive about the firm’s outlook due to its robust AUM growth momentum, improving asset quality and healthy disbursement growth. It expects the company’s net profit to grow at a CAGR of 13.7% over FY23-25.

  • PDS experiences a rise in its stock price as its subsidiary, PDS Lifestyle, successfully completes the acquisition of a 100% stake in New Lobster. The acquisition positions New Lobster as the global hub for PDS' Ted Baker brand, serving as a core licensee and operating partner. It appears in a screener of stocks with strong momentum.

  • Private banks like IDFC First Bank, RBL Bank, Bandhan Bank, Federal Bank and HDFC Bank are rising in trade. All constituents of the broader sectoral index, Nifty Private Bank, are also trading in the green.

  • Kalyan Jewellers surges over 10% in trade today as reports suggest that 6.41 cr shares (6.2% equity) of the company, amounting to Rs 725 crore, change hands through block deals.

  • BC Asia Investments VII, BC Asia Investments III and Integral Investments South Asia IV sell a sum of 0.73% stake in Axis Bank in a block deal on Thursday. According to reports, Bain Capital is the likely seller.

  • Shares of IKIO Lighting debut on the bourses with a 37.7% premium to the issue price of Rs 285. The Rs 607 crore IPO has received bids for 28.99 times the total shares on offer.

  • JP Morgan has an 'Overweight' rating on Ashok Leyland with a target price of Rs 175. According to the brokerage, the company plans to improve its market share in the M&HCV & LCV segments. It adds that Ashok Leyland is also focused on improving margins in the CV space.

  • Paras Defence and Space Technologies is rising as it secures a Rs 53 crore contract from the Ministry of Defense for the realization of optronic Periscopes for ICS. It appears in a screener of stocks with strong momentum.

  • Tech Mahindra appoints Mohit Joshi as the Managing Director and Chief Executive Officer of the company, effective from December 20, 2023, subject to approval from shareholders. He has also been appointed as a Whole Time Director and designated as Managing Director (Designate) from June 20, 2023, until December 19, 2023.

  • RITES rises as it secures an order worth $8,11,75,500 (Rs 665.1 crore) from the National Railways of Zimbabwe. The contract involves the supply of rolling stock, including 3000 HP diesel-electric locomotives and high-sided open wagons. It appears in a screener of stocks with no promoter pledge.

  • A consortium of Ramkrishna Forgings and Titagarh Rail Systems bags a contract worth Rs 12,226.5 crore from the Ministry of Railways to manufacture and supply 15.4 lakh forged wheels over 20 years. According to the agreement, the consortium will deliver 40,000 wheels in the first year, followed by 60,000 wheels in the second year and 80,000 wheels in each subsequent year.

Riding High:

Largecap and midcap gainers today include Emami Ltd. (403.00, 5.59%), HDFC Life Insurance Company Ltd. (609.55, 5.43%) and Schaeffler India Ltd. (3,184.55, 4.97%).

Downers:

Largecap and midcap losers today include Macrotech Developers Ltd. (624.20, -3.68%), Adani Wilmar Ltd. (419.35, -2.74%) and JSW Energy Ltd. (256.60, -2.19%).

Movers and Shakers

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

Top high volume gainers on BSE included Kalyan Jewellers India Ltd. (131.10, 14.80%), Mazagon Dock Shipbuilders Ltd. (1,187.60, 12.62%) and Wockhardt Ltd. (215.20, 11.50%).

Top high volume losers on BSE were Bajaj Auto Ltd. (4,641.95, -1.69%), Solar Industries India Ltd. (3,799.15, -1.20%) and Equitas Small Finance Bank Ltd. (86.20, -1.20%).

Mangalore Refinery And Petrochemicals Ltd. (71.80, 7.40%) was trading at 11.2 times of weekly average. Polyplex Corporation Ltd. (1,357.65, 5.65%) and Adani Transmission Ltd. (810.90, -0.47%) were trading with volumes 9.1 and 7.3 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

46 stocks overperformed with 52 week highs,

Stocks touching their year highs included - AIA Engineering Ltd. (3,477.00, 4.49%), Apollo Hospitals Enterprise Ltd. (5,200.05, -0.36%) and Bharat Electronics Ltd. (125.20, 2.67%).

20 stocks climbed above their 200 day SMA including Wockhardt Ltd. (215.20, 11.50%) and Alok Industries Ltd. (15.40, 9.22%). 1 stock slipped below their 200 SMA including Wipro Ltd. (381.30, -1.97%).

 
Trendlyne Marketwatch
Trendlyne Marketwatch
15 Jun 2023
Market closes lower, G R Infraprojects bags contract worth Rs 1,085.5 crore from NHAI

Trendlyne Analysis

Nifty 50 closed at 18,688.10 (-67.8, -0.4%), BSE Sensex closed at 62,917.63 (-310.9, -0.5%) while the broader Nifty 500 closed at 16,058.25 (-25.8, -0.2%). Of the 1,980 stocks traded today, 842 were on the uptick, and 1,088 were down.

Indian indices extend losses from the afternoon session and close in the red, with Nifty 50 hovering below the 18,700 mark. The volatility index, Nifty VIX, drops below 12 at the close. MCA orders an investigation into Hero MotorCorp in fund diversion case.

Nifty Smallcap 100 and Nifty Midcap 100 closed in the green, despite the benchmark index closing lower. Nifty FMCG and Nifty Pharma closed sharply higher than Wednesday’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 6.8%.

Most European indices trade lower except for England’s FTSE 100 trading in the green. US indices futures trade lower indicating a negative start. ECB is set to raise the interest rate by 25 bps later today to reign in inflation. Eurozone inflation for May was recorded at 6.1%, a multi-fold increase from ECB’s 2% target.

  • Apollo Hospitals Enterprise sees a long buildup in its June 29 future series as its open interest rises 20% with a put-call ratio of 0.94.

  • Zee Entertainment falls more than 3.5% and ranks low on Trendlyne's checklist with a score of 43.5%. The stock is in the 'Strong Sell' zone and appears in a screener with declining quarterly profits.

  • Tanla Platforms, Tube Investments of India, J B Chemicals & Pharmaceuticals, Varun Beverages and JBM Auto outperform the Nifty 500 index over a 5-year period.

  • G R Infraprojects rises as it wins a contract worth Rs 1,085.5 crore from the National Highway Authority of India (NHAI) for the four laning of NH-530B spanning from Kasganj Bypass to Chandar Nagar in Uttar Pradesh. It appears in a screener with zero promoter pledge.

  • Bharat Heavy Electricals, in consortium with Titagarh Rail Systems, inks a contract worth Rs 24,000 crore with Indian Railways to manufacture 80 fully assembled Vande Bharat sleeper train sets by 2029 and maintain them for 35 years, according to reports.

  • Edible oil companies like BCL Industries, Adani Wilmar, Patanjali Foods and Gujarat Ambuja Exports are rising in trade. This follows reports suggesting that the Ministry of Food & Public Distribution has lowered the import duty on refined soya bean and sunflower oil, resulting in a 5% decrease in the cost of edible oils for consumers.

  • Domestic air traffic has grown 36.1% YoY in May. According to the data released by DGCA, domestic airlines transported 132.1 lakh passengers. IndiGo's market share improved by 390 bps, while Air India gained 80 bps.

  • Dalmia Bharat touches a new 52-week high today after signing an MoU with SaltX Technology to implement their EAC (Electric Arc Calciner) technology, which can electrically produce quick lime and cement. It appears in a screener for stocks with low debt.

  • Pharmaceutical stocks like Zydus Lifesciences, Aurobindo Pharma, Dr. Reddy’s Laboratories, Divi’s Laboratories and Natco Pharma are rising in trade. Barring GlaxoSmithKline Pharmaceuticals, all other constituents of the broader index, Nifty Pharma, are also trading in the green.

  • Indian Oil Corp and Poly Medicure touch their52-week highsof Rs 93.7 and Rs 1,146.95, respectively. Indian Oil Corp has risen 11.4% in the past month, while the other increased by 16.1%.

  • Cochin Shipyard is rising as its arm, Udupi Cochin Shipyard, bags a Rs 580 crore order from Wilson Shipowning, a Norway-based company. The order involves the design and construction of six new-gen diesel-electric general cargo vessels. It shows up in a screener with improving cash flows from operations over the past two years.

  • Morgan Stanley downgrades Tata Chemicals' rating from 'Overweight' to 'Equal-weight' and lowers the target price to Rs 916. The brokerage cites the impact of declining energy prices on low-cost producers, which is expected to result in earnings downgrades.
  • Aurionpro Solutions hits the upper circuit a day after the acquisition of a 1.15% equity stake (2,63,237 shares) in the company by Sumeet Nagar's Malabar India Fund. The deal has been executed at an average price of Rs 880.23 per share. The stock appears in a screener of stocks with improving annual net profit.                                                                                                       
  • BoB Capital Markets maintains its ‘Hold’ rating on Voltas with a target price of Rs 900, implying an upside of 11.8%. The brokerage anticipates the firm’s Q1FY24 performance to be below expectations due to unseasonal rainfall dampening summer demand. It also foresees market share decline and tough competition as obstacles to future growth.                              
  • Mahindra & Mahindra, InterGlobe Aviation,Dr. Reddy's Laboratories, Adani Wilmar and L&T Finance Holdings are trading above their third resistance or R3 levels.                                                                                                                                          
  • Retailing stocks like Avenue Supermarts, Vedant Fashions, PVR INOX and V-Mart Retail are rising in trade. The broader retailing sector is also trading in the green.                                                                                                                                     
  • Dilip Buildcon is rising as it completes the rehabilitation and upgradation project of a six-lane highway in Odisha, with a project cost of Rs 1,522 crore. The stock appears in a screener for companies with strong momentum.                                       
  • Great Eastern Shipping Company rises more than 4.5% and ranks high on Trendlyne's checklist with a score of 87%. The stock is in the 'Strong Buy' zone and appears in a screener with improving book value per share.                                                  
  • Reports suggest that 2.25 crore shares (0.75% equity) of Axis Bank, amounting to Rs 2,178 crore, change hands in a block deal. Bain Capital is the likely seller in this transaction.

  • Godrej Properties hits a 52-week high of Rs 1,575 as it announces plans to buy a 7.4 acre land parcel for a luxury residential project in Kolkata.

  • Small Cap World Fund sells a 1.62% stake in Aavas Financiers for approx Rs 173.4 crore in a bulk deal on Wednesday.

  • JP Morgan initiates coverage on Apollo Hospitals and Fortis Healthcare with an ‘Overweight’ rating, while giving a 'Neutral' call on Max Healthcare and Global Health. The brokerage highlights that profitability has improved for the hospitals, and expects a 19% EBITDA CAGR during FY23-26.
  • Ashish Kacholia sells a 1.04% stake in D-Link (India) for approx Rs 8.4 crore in a bulk deal on Wednesday.

  • SJVN signs a memorandum of understanding (MoU) with Maharashtra State Power Generation Co (MAHAGENCO) to develop 5,000 MW of renewable energy projects. The MoU includes exploring the feasibility of various forms of renewable energy and participating in hydropower plant tenders. With this agreement, SJVN's project portfolio reaches 54,065 MW.

  • BSE sells a 4.5% stake in Central Depository Services for approximately Rs 467.7 crore in a bulk deal on Wednesday, while ICICI Prudential Technology Fund picks up a 0.5% stake for Rs 52 crore.

Riding High:

Largecap and midcap gainers today include Avenue Supermarts Ltd. (3,917.70, 5.75%), Tube Investments of India Ltd. (2,978.50, 5.09%) and Dixon Technologies (India) Ltd. (4,577.00, 4.66%).

Downers:

Largecap and midcap losers today include Zee Entertainment Enterprises Ltd. (186.60, -4.23%), Hero MotoCorp Ltd. (2,843.05, -3.02%) and Punjab National Bank (50.40, -2.70%).

Crowd Puller Stocks

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

Top high volume gainers on BSE included HEG Ltd. (1639.30, 15.48%), Poly Medicure Ltd. (1,126.45, 12.94%) and Supreme Petrochem Ltd. (410.40, 8.06%).

Top high volume losers on BSE were CreditAccess Grameen Ltd. (1,189.45, -2.33%), Indian Overseas Bank (24.30, -1.02%) and GlaxoSmithKline Pharmaceuticals Ltd. (1,400.00, -0.86%).

PNC Infratech Ltd. (323.65, 1.57%) was trading at 13.6 times of weekly average. AstraZeneca Pharma India Ltd. (3,650.90, -0.04%) and Great Eastern Shipping Company Ltd. (753.75, 4.45%) were trading with volumes 8.0 and 7.6 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

52 stocks made 52-week highs,

Stocks touching their year highs included - AIA Engineering Ltd. (3,326.50, 1.00%), Apollo Hospitals Enterprise Ltd. (5,218.75, 4.19%) and Apollo Tyres Ltd. (407.35, -0.21%).

12 stocks climbed above their 200 day SMA including Avenue Supermarts Ltd. (3,917.70, 5.75%) and Brightcom Group Ltd. (28.65, 4.95%). 7 stocks slipped below their 200 SMA including Wipro Ltd. (388.95, -1.89%) and Kotak Mahindra Bank Ltd. (1,833.50, -1.67%).

 
Trendlyne Marketwatch
Trendlyne Marketwatch
14 Jun 2023
Market closes higher, fertilizer stocks are rising in trade

Trendlyne Analysis

Nifty 50 closed at 18,755.90 (39.8, 0.2%), BSE Sensex closed at 63,228.51 (85.4, 0.1%) while the broader Nifty 500 closed at 16,084.05 (35.9, 0.2%). Of the 1,986 stocks traded today, 1,034 were on the uptick, and 884 were down.

Indian indices closed marginally higher, with the benchmark Nifty 50 index closing above the 18,750 mark. KEC International closed over 3% higher as it secured orders worth Rs 1,373 crore across various business segments including railways, civil, transmission & distribution, and cables.

Nifty Smallcap 100 and Nifty Midcap 100 closed in the green, following the benchmark index. Nifty Energy and Nifty Metal closed higher than Tuesday’s close. According to Trendlyne’s sector dashboard, Fertilizers was the top-performing sector of the day.

Major European indices traded in the green, in line with the US indices futures. Most Asian indices closed flat or higher, except for Hong Kong’s Hang Seng index, which closed in the red. Investors look ahead to the U.S. Federal Reserve’s latest policy-setting decision, to be announced tomorrow. Analysts expect the US Fed to pause rates for the first time since January 2022.

  • Money flow index (MFI) indicates that stocks like Power Finance Corp, Tata Communications, Astral and C.E. Info Systems are in the overbought zone

  • The Fertilizers & Chemicals Travancore rises 14.4% in trade, positioning it in a screener for stocks near their 52-week high. It also ranks high on Trendlyne's checklist with a score of 72.7% and is in the 'Sell' zone.

  • Maruti Suzuki India, Housing Development Finance Corp, Kotak Mahindra Bank and Larsen & Toubro have TTM PE ratios that trade above their respective industries by 2.19, 0.58, 6.31, and 2.37 points, respectively.

  • Jefferies reportedly maintains its ‘Buy’ rating on SBI Cards and Payment Services and raises the target price by 19% from its previous target price to Rs 1,100 per share. The brokerage highlights favorable industry growth outlook, strong spending growth, increased net interest income, and improved credit costs as reasons for the upgrade.

  • V-Mart is rising as 5.8 lakh shares (3% equity) of the company, amounting to Rs 116 crore, change hands in a large trade, according to reports.

  • Fertilizer stocks like Coromandel International, The Fertilisers & Chemicals Travancore, Gujarat Narmada Valley Fertilizers & Chemicals and Rashtriya Chemicals & Fertilizers are rising in trade. The broader fertilizers sector is also trading in the green.

  • Galaxy Surfactants rises more than 5% and ranks high on Trendlyne's checklist with a score of 69.6%. The stock is in the 'Buy' zone and has five buy ratings out of eight from brokerages. It appears in a screener of stocks with high momentum scores.

  • IPCA Laboratories is falling as the US FDA issues Form 483 with 11 observations regarding the company's manufacturing facility in Ratlam, Madhya Pradesh, after conducting an inspection from June 5 to June 13.

  • Central Depository Services (India) is falling as reports suggest that 56.3 lakh shares (5.4% equity) of the company, amounting to Rs 586 crore, change hands in a large trade today.

  • Metal stocks like APL Apollo Tubes, JSW Steel, Tata Steel, Jindal Stainless and Hindustan Copper are rising in trade. Barring Hindustan Zinc, all other constituents of the broader index, Nifty Metal, are also trading in the green.

  • Dhampur Sugar rises as it completes the expansion of its grain-based distillery's capacity to 100 KLPD (kilolitres per day). This increased capability can be used interchangeably for molasses, syrup, and grain. It appears in a screener of stocks with increasing quarterly profits.

  • The Securities and Exchange Board of India (SEBI) imposes Rs 40 lakh fine on Brightcom Group's promoters after finding them guilty of violating the provisions of insider trading from April 2020 to August 2021.

  • HDFC Securities maintains its ‘Buy’ rating on UltraTech Cement and raises the target price to Rs 9,305 from Rs 8,670. This implies an upside of 12.3%. The brokerage remains positive about the company’s prospects on the back of strong volume growth, falling raw material prices and a healthy balance sheet. It expects the firm’s revenue to grow at a CAGR of 8.5% over FY23-25.

  • India’s WPI inflation falls to -3.48% in May, down from -0.92% in April, driven by lower prices of mineral oils, basic metals, food products, and crude petroleum.

  • Granules India is rising as it gets US FDA approval for its Abbreviated New Drug Application (ANDA) for levetiracetam tablets, which are used for seizure therapy. The annual US market for the drug is approximately $247 million as of March 2023. It appears in a screener for stocks with low debt.

  • Vodafone Idea surges as it reportedly plans to raise Rs 14,000 crore through new share issuance, with half of the amount contributed by promoters Aditya Birla Group and UK's Vodafone Group. The promoters will invest Rs 2,000 crore as fresh equity, while an additional Rs 7,000 crore will be raised from external investors.

  • Ramkrishna Forgings touches a new 52-week high today as it bags a 4.5 million euro order for supplying undercarriage parts for a prominent European railway passenger coach manufacturer. It appears on a screener for stocks with strong momentum.

  • Indian rupee appreciates 9 paise to 82.28 against the US dollar in early trade today, led by a weak dollar, falling crude oil prices, and foreign fund inflows.

  • Zydus Lifesciences rises as its Ahmedabad unit receives a clean chit from the US Food and Drug Administration with no observations. It appears in a screener of low-debt stocks.

  • Societe Generale sells a 0.6% stake in Nazara Technologies for approx Rs 27.3 crore in a bulk deal on Tuesday.              

  • JP Morgan downgrades its rating on Persistent Systems to ‘Underweight’ from ‘Neutral’ and cuts the target price to Rs 4,100 from Rs 4,200. The brokerage emphasizes that the company's high exposure to discretionary spending (83%) sets it apart from its peers.

  • Plutus Wealth Management buys a 0.78% stake in Zee Entertainment Enterprises for approx Rs 143 crore in a bulk deal on Tuesday.

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

  • KEC International rises as it secures orders worth Rs 1,373 crore across various business segments including railways, civil, transmission & distribution, and cables. The company appears in a screener for stocks with no promoter pledge.

  • Anupam Rasayan India signs a letter of intent worth $256 million (Rs 2,186 crore) with a Japanese specialty chemical company. The order involves the supply of a new-age patented life science active ingredient for five years from 2025. The stock shows up in a screener for companies with book value per share increasing over the past two years.

Riding High:

Largecap and midcap gainers today include 3M India Ltd. (28,500.00, 5.76%), Tata Consumer Products Ltd. (862.50, 5.20%) and Patanjali Foods Ltd. (1,094.60, 4.78%).

Downers:

Largecap and midcap losers today include Zomato Ltd. (74.10, -5.36%), Macrotech Developers Ltd. (649.75, -4.39%) and Sona BLW Precision Forgings Ltd. (509.85, -3.74%).

Volume Rockets

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

Top high volume gainers on BSE included PCBL Ltd. (158.55, 8.52%), Shyam Metalics and Energy Ltd. (340.45, 7.26%) and V-Mart Retail Ltd. (2,099.65, 6.07%).

Top high volume losers on BSE were KPIT Technologies Ltd. (1,039.70, -4.85%), Tata Chemicals Ltd. (977.95, -2.21%) and Welspun India Ltd. (93.35, -2.20%).

Anupam Rasayan India Ltd. (1,073.30, -1.12%) was trading at 7.0 times of weekly average. KEC International Ltd. (566.80, 2.66%) and Tata Coffee Ltd. (251.10, 5.93%) were trading with volumes 6.8 and 6.5 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

52 stocks overperformed with 52-week highs,

Stocks touching their year highs included - 3M India Ltd. (28,500.00, 5.76%), AIA Engineering Ltd. (3,293.55, 1.08%) and Astral Ltd. (1,968.65, -1.91%).

11 stocks climbed above their 200 day SMA including Motilal Oswal Financial Services Ltd. (693.40, 4.04%) and Kansai Nerolac Paints Ltd. (450.10, 1.94%). 3 stocks slipped below their 200 SMA including HDFC Asset Management Company Ltd. (1,933.85, -2.14%) and Supreme Petrochem Ltd. (378.55, -0.51%).

 
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The Baseline
14 Jun 2023
India's electric vehicles are facing speedbumps | Screener for stocks in the PE buy zone with rising momentum
By Shreesh Biradar

In 1908, the Ford Model T set off a transportation revolution as the first mass-produced car with an internal combustion engine (ICE). It had no seatbelts or windows, 20 horsepower (hp) and a top speed of 72 km/hr.

ICE vehicles have evolved a lot since that first car - the modern Ford GT MK IV has 40 times the power, with 800 hp and a top speed of 472 km/hr.  

Before the Model T, roads across cities had to be cleaned every day of huge amounts of horse manure, because people were mostly travelling in horse carriages. The car was a relief to everyone who had to walk around while trying not to step into horse poop. Now more than a hundred years later, electric vehicles are emerging as a cleaner, better alternative to traditional cars.

Elon Musk, the poster boy worldwide for electric cars, made EVs a disruptive force against ICE cars with Tesla. Several auto manufacturers before him had tried to sell electric vehicles without success - small, cramped cars that nobody wanted to be seen in. Tesla paved the way for EVs to become both competitive and a status symbol.

But so far, the Indian story has been different. Despite India introducing its first domestically manufactured electric car, the Reva, in 2001, the country has lagged behind major markets in increasing electric vehicle usage. 

In this week’s Analyticks:

  • Facing speedbumps: EVs in India need an ecosystem boost
  • Screener: Stocks in the PE Buy zone with reasonable durability score, rising momentum score and strong Q4FY23 performance

Let’s get into it.

Tata, Mahindra, Ola, Hero, and TVS have become leading electric mobility manufacturers in India. In FY23 alone, the country saw a hockey-stick change in demand, with 11,71,944 electric vehicle sales - more than the total EVs sold in India over the past decade.

Fortune Business Insightsexpects India's electric vehicle market to grow from $3.2 billion in 2022 to $114 billion by 2029 – a CAGR of 66.5%.

Norway has the highest EV penetration in the world right now, with 79.2%. The Norwegian government has passed legislation requiring that all cars sold in 2025 be zero-emission (electric or hydrogen-powered) vehicles. In comparison, the Indian government is far behind and is targeting to achieve 30% EV penetration by 2030.

Station shortage: 2,577 for EVs vs 80,000 for ICE

To promote electric vehicles, the Indian government has adopted a three-pronged approach by subsidizing EV  consumption, building charging infrastructure across the country, and incentivizing local EV manufacturing. 

Under the National Electric Mobility Mission Plan (NEMMP), the goal is to set up one charging station every three kilometres in cities and one every 25 kilometres on highways. However, only 2,577 charging stations have been installed so far, a  stark contrast to the nearly 80,000 fueling stations India has for ICE vehicles.

The government's Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME) scheme offers subsidies for electric vehicles. To qualify, the vehicle must have at least 70 km of range and a minimum speed of 40 km/hr. Additionally, the government has set norms requiring 50% of the vehicle’s manufacturing to be done in India. These initiatives have led to a price decline of Rs 10,000 - 15,000 for electric two-wheelers.

Data source: moneycontrol

To make lithium-ion battery packs more competitive in terms of pricing, the government has reduced the Goods and Services Tax (GST) on these batteries from 18% to 5%. The new Production Linked Incentive (PLI) programme for this industry is also expected to promote domestic battery manufacturing. 
Government initiatives have shown positive results for the electric two-wheeler segment, which registered sales of 1 lakh units in the month of May 2023, double the average during FY23. However, problems such as the lack of charging infrastructure on highways and battery limitations continue to hinder the growth of EV passenger vehicle sales. 

Two-wheeler startups, auto equipment manufacturers lead the EV revolution

Electric two-wheelers account for nearly 61.5% of all EVs sold in India, followed by three-wheelers (34%) and passenger vehicles (3.4%). As two-wheelers are designed for traveling a shorter distance, the technology makes them more attractive.

Electric two-wheeler sales have captured 3.2% of India's two-wheeler market, while the share for passenger vehicles stands at 1.6%. As of December 2022, EVs accounted for 16.8% of all vehicle sales in Delhi, marking a YoY growth of 86%.

Startups like Ola Electric (21.9%), Okinawa Autotech (15.6%), Hero Electric (12.9%) and Ampere Vehicles (12.1%) account for nearly 50% of the total two-wheeler electric vehicle sales in India.

The simplicity of electric vehicles, with fewer than 20 moving parts compared to the 2,000+ parts in IC engines, has put traditional OEM manufacturers at a disadvantage. Consequently, their focus has shifted towards technological development like sensors, software, wiring and batteries. 

OEM manufacturers are signing joint ventures with electric vehicle startups to update their product portfolio. Uno Minda, for instance, has signed a JV with foreign firms to manufacture battery packs, smart plugs, residual current device (RCD) cables and motor controllers. This will enhance its kit value from the currentRs 8,000 per vehicle to Rs 50,000 per vehicle.

In the hunt for technology neutrality, Igarashi Motors is developing motors that can be used for both IC engines and electric vehicles. The firm, through a third party, supplied motor parts to Tesla for a short while.

Bosch has also been investing in the development of electric mobility solutions like battery management systems, electric axles and vehicle control units. While these have fewer takers in India, there has been a noticeable global uptick in the sales of such technology. 

India struggles in battery manufacturing, lags behind China

Battery manufacturing has a crucial role in the electric vehicle industry, accounting for nearly 30-40% of the total vehicle cost.  India lags behind in this key aspect, with China controlling around 75% of the battery manufacturing market. The United States, Hungary and Germany also have a significant presence in this space.

Indian firms have not made big investments in battery technology, unlike global players who are working on improving the energy density of batteries to give EVs more travel range. Some of the highest-performing battery cells – Tesla’s upcoming 4,680 cells and LG Energy Solutions’ Ultium cells – can reach energy densities of over 300 Wh/kg, up from around 100-150 Wh/kg a decade ago. 

Major economies are making rapid progress in setting up giga-factories. China has an installed capacity of 5,462 GWh for lithium-ion battery manufacturing, followed by Europe (1193 GWh) and North America (1047 GWh).

Indian firms are yet to make much headway here. Some Indian companies are taking steps now in battery manufacturing - Tata Group is developing a 20 GWh plant in Gujarat, Exide Industries plans to invest Rs 6,000 crore in a 12 GWh plant, and Amara Raja Batteries is investing around Rs 9,500 crore to set up a 16 GWh plant along with a 5 GWh plant for a battery pack assembly unit. Many non-technical players like Reliance, Amperex and OLA are betting on lithium-ion battery manufacturing by acquiring or investing in new plants.

However, the current trend suggests that battery manufacturers may struggle to scale up production to meet the rising demand for EVs. Many Indian auto manufacturers instead import battery packs from China, assemble them domestically, and sell them under different brand names.  

India's electric vehicle ecosystem has witnessed significant growth and government support in recent years. But it still relies heavily on imports, and India needs to ramp up its battery manufacturing capabilities a lot faster. Building out manufacturing and improving charging infrastructure is essential to reduce oil imports and unlock the full potential of electric mobility for India.

Screener: Stocks in PE Buy zone with reasonable durability score, rising momentum score and strong Q4FY23 performance

To find promising stocks, investors often look for a combination of factors that indicate a good investment opportunity. This screener looks for automobile & auto componentsstocks in the PE Buy zone with reasonable durability and rising momentum scores, all while delivering strong YoY growth in net profit and revenue in Q4FY23. A stock is in the PE Buy Zone if it is trading at a PE lower than its historical PE average.

Major stocks in the screener include Titagarh Wagons, Eicher Motors, Maruti Suzuki, Banco Products and Mahindra & Mahindra.

Titagarh Wagons has traded below its current PE only 1.7% of the time. This commercial vehicles manufacturer posted a 102.6% YoY revenue growth in Q4FY23, while its net profit improved by 293.3% YoY, supported by strong demand and the government’s increased budgetary allocation for railways. This has helped the stock to grow by 20.7% over the past month, boosting its Trendlyne Momentum score by 5.6 points to 74.7 in the same period. The company also plans to increase its wagon manufacturing capacity from 8,400 units to 12,000 units per annum.

Eicher Motors, known for its two and three-wheeler vehicles,  has traded for 22.8% of the time below its current PE. The company witnessed its revenue increase by 19.1% YoY in Q4FY23, while its net profit grew by 48.4% YoY, backed by a higher-than-estimated average selling price (ASP) and falling input costs. The stock has a high Trendlyne durability score of 60 and saw a 5.9 point increase in its momentum score to 56.6 over the past month. The company also plans to launch multiple new products in the next 18-24 months.

Car manufacturer Maruti Suzuki India has traded 26% of the time below its current PE. It posted a 19.9% YoY rise in revenue and a 42.4% YoY growth in its net profit in Q4FY23, backed by increased demand for SUVs in the domestic market, higher sales volume and product prices. The stock has a Trendlyne Momentum score of 64.6, an improvement of 12.3 points MoM, and a high Durability score of 80.

You can find more popular screenershere.

Signing off this week,

The Trendlyne Team