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The Baseline
18 Jul 2023
Five analyst picks with high upsides
By Suhas Reddy

This week we take a look at five analyst picks with high upsides

  1. Piramal Pharma: Edelweiss initiates a ‘Buy’ call on this pharma company with a target price of Rs 130, indicating an upside of 29.9%. The brokerage recommends the company as a long-term investment. Analysts Thakur Ranvir Singh and Harsh Shah say, “Piramal Pharma recorded a revenue CAGR of 15% over the past 10 years, with multiple acquisitions and spin-offs. However, the past few quarters were challenging.” But the analysts expect a strong recovery in the overall business in the coming years. 

Singh and Shah are positive about the company due to a strong product pipeline and increased order inflows as the manufacturing base returns to normal after facing higher attrition during the pandemic. According to analysts, Piramal Pharma faced multiple headwinds over the past couple of years, which hit its valuation. But with the improving performance, they expect the valuation to gradually catch up. 

The analysts expect the macro-environment to improve over the next year and,a significant recovery in Piramal Pharma’s return ratios as the company executes major capex projects. 

  1. Kajaria Ceramics: ICICI Direct maintains a ‘Buy’ call on this ceramic and tiles manufacturer with a target price of Rs 1,680, indicating an upside of 24.1%. Analyst Bhupendra Tiwary says that “Kajaria, with a net cash balance sheet and superior brand, is well positioned in the tiles sector with expanding reach to tier-2 and 3 cities.” The management has guided for a 13-15% YoY volume growth in the tiles segment during FY24, driven by increased demand, capacity utilization, and an enhanced distribution network. They expect exports to grow by 25% in FY24. 

The analyst is also optimistic about the company due to the significant decline in gas prices over the past two quarters. With lower fuel costs, he expects the company to achieve net gains of Rs 130-140 crore in power and fuel expenses in FY24, and pass on net benefits of Rs 50 crore to dealers through trade discounts. Tiwary remains positive as Kajaria is a net cash company (Rs 236 crore in FY23) with a healthy balance sheet.  

  1. Federal Bank: Sharekhan maintains its ‘Buy’ rating on this bank with a target price of Rs 170, implying an upside of 26%. In Q1FY24, its standalone net profit rose 42.1% YoY to Rs 853.7 crore and revenue grew by 38.5% YoY. 

Analysts at Sharekhan maintain their positive outlook due to its sustained loan growth momentum and healthy core fee income. They believe the company will maintain its healthy return ratios despite margin headwinds, thanks to its asset quality and lower credit costs. 

Although the bank’s net interest margin fell in Q1, the analysts are confident that the NIM will rise from H2FY24, supported by higher incremental yields. They added, “We believe the bank still has potential for positive surprises, led by operating leverage and higher core fee income.” The analysts expect the company’s net profit to grow at a CAGR of 17.5% over FY23-25. 

  1. Lemon Tree Hotels: Motilal Oswal keeps its ‘Buy’ rating on this hotel chain with a target price of Rs 115, implying an upside of 25.3%. Analysts Suman Kumar, Meet Jain and Omkar Shintre believe the addition of Aurika MIAL (its largest hotel with 699 rooms) through a management contract will be a game changer for the company. “The addition will improve average room rates (ARR), brand mix and margins at the consolidated level, paving the way for management contracts and exponential growth of management fees,” the analysts add.

They also believe that the company’s restructuring plan will accelerate its debt repayment process. They expect the growth momentum from FY23 to continue in FY24. The analysts anticipate the firm’s revenue to grow at a CAGR of 28.2% over FY23-25. 

  1. Central Depository Services (India) (CDSL): HDFC Securities upgrades its rating on this investment company to 'Buy', with a target price of Rs 1,470, indicating a 22% upside. Analysts Amit Chandra and Vivek Sethia express optimism and expect a recovery akin to the company’s robust performance one year ago in FY21-22.

    Despite a slump in growth in FY23 due to decreased market-linked revenues such as transaction, IPO, and KYC fees, a 30% YoY increase in annuity streams offset this decline.

Chandra and Sethia predict a rebound in FY24, driven by increased Beneficiary Owner (BO) account additions, higher transaction revenues due to delivery volume growth, and a continuous surge in annuity revenue streams. With the company adding 20 lakh accounts monthly, they anticipate CDSL to dominate the BO account market with a 73% share and an 85% incremental share. Currently, only 2% of policies are in demat form. The analysts foresee a recurring opportunity of Rs 152 crore for repositories. Assuming CDSL's 25% market share, they predict an additional income of Rs 38 crore, representing 7% of FY23's revenue.

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

(You can find all analyst picks here)

Trendlyne Marketwatch
Trendlyne Marketwatch
18 Jul 2023
Market closes higher, Polycab India's Q1FY24 net profit grows 81% YoY to Rs 402.8 crore

Trendlyne Analysis

Nifty 50 closed at 19,749.25 (37.8, 0.2%) , BSE Sensex closed at 66,795.14 (205.2, 0.3%) while the broader Nifty 500 closed at 16,872.00 (-0.1, 0%). Of the 1,959 stocks traded today, 691 were on the uptick, and 1,208 were down.

Indian indices closed in the green, with the Nifty 50 closing at an all-time high for a third consecutive trading session. The volatility index, Nifty VIX, rose over 2.9% but closed below the 12% level. Polycab India surged to its all-time high of Rs 4,148.7 per share as its net profit grew 81% YoY to Rs 402.8 crore in Q1FY24.

Nifty Smallcap 100 and Nifty Midcap 100 closed in the red, underperforming the benchmark index. Nifty Energy and Nifty IT closed higher than Monday’s close. According to Trendlyne’s sector dashboard, Healthcare Equipment & Supplies was the top-performing sector of the day.

Major Asian indices closed in the red, except for India’s BSE Sensex and Japan’s Nikkei 225, which closed higher. European indices traded flat as investors looked ahead to Q1FY24 earnings announcements from major companies. Brent crude oil futures traded in the green after falling over 3.5% in the past two trading sessions.

  • Relative strength index (RSI) indicates that stocks like 360 One Wam, Sunteck Realty, RBL Bank and C.E. Info Systems are in the overbought zone.

  • Adani Enterprises rises as Gautam Adani addresses shareholders, dismissing Hindenburg’s report as a "malicious attempt to damage the group's reputation". He adds, “Even during this crisis, the company raised several billions from international investors. No credit agency in India or abroad cut any ratings." He reassures shareholders that the group remains resilient and focused on its long-term goals.

  • ICICI Prudential Life Insurance Company falls despite a 31.7% YoY increase in net profit to Rs 206.2 crore in Q1FY24. Its revenue surges by 52% YoY, but the value of new business drops by 7% YoY. The company appears in a screener of stocks with rising quarterly profits.

  • Polycab India surges to its all-time high of Rs 4,128.6 per share as its net profit grows 81% YoY to Rs 402.8 crore in Q1FY24. Revenue also improves by 42% YoY on the back of an increase in revenue from the wires & cables and international businesses. It shows up in a screener of stocks with prices above short, medium and long-term moving averages.

  • Chetan Ahya, Chief Asia Economist at Morgan Stanley, maintains his forecast of 6.5% average growth for India in FY24. He expects inflation to be around 5% in Q1CY24, and RBI to begin interest rate cuts in February 2024.

  • Ganesh Housing Corp surges as its net profit jumps 12.3x to Rs 161.3 crore in Q1FY24. Revenue also grows 6.4x to Rs 270.4 crore, backed by increased pre-sales and a strong pipeline of projects. It appears in a screener of stocks that have seen improvements in quarterly revenue, net profit, and operating profit margin.

  • Satin Creditcare Network falls as Nordic Microfinance Initiative Fund III sells a 2.2% equity stake (20.4 lakh shares) worth Rs 35.8 crore in the company. The transaction was at Rs 175.5 per share for 15.6 lakh shares and Rs 176.2 per share for the remaining 4.4 lakh shares. The company appears in a screener of stocks with declining quarterly MF shareholdings.

  • Netweb Technologies India's Rs 631 crore IPO gets bids for 6.71X the available 88.6 lakh shares on offer on the second day of bidding. The retail investor quota gets bids for 6.84X of the available 44.9 lakh shares on offer.

  • HDFC Securities downgrades its rating on Angel One to ‘Add’ from ‘Buy’ but increases the target price to Rs 1,815 from Rs 1,800. This implies an upside of 20.7%. The brokerage cites moderation in the number of orders, slower customer acquisition, and increased employee costs for the downgrade. It also believes that the stock is trading at expensive levels after its uptrend over the past six months.

  • One 97 Communications (Paytm) is falling as SoftBank reportedly sells an additional 2% stake worth $250-300 million in the company. This will reduce the investment bank's ownership in the company to below 10% for the first time.

  • Ashish Kacholia adds Ugro Capital to his portfolio in Q1FY24, buying a 1.6% stake in the company. He also increases his stake in Aditya Vision to 2% by purchasing an additional 0.9% stake during the quarter.

  • Happiest Minds Technologies completes its fundraising round of Rs 500 crore through qualified institutional placements. The board has approved the allotment of 54,11,255 shares at an average price of Rs 924 per share. The company appears in a screener of stocks with increasing FII/FPI shareholdings.

  • Rama Steel Tubes is surging as it signs a memorandum of understanding (MoU) with JSW Steel to procure 1 lakh tonnes of hot rolled coils (HRC) used in the manufacturing of steel tubes and pipes. The MoU also establishes Rama Steel Tubes as the official distributor of HRC for JSW Steel in the western region.

  • Dolly Khanna buys a 0.5% stake in Deepak Spinners in Q1FY24. She now holds a 1.7% stake in the company.

  • Endurance Technologies rises as it acquires an additional 5% equity stake (6,850 shares) in Maxwell Energy Systems. The deal was executed at an average price of Rs 10,136 per share, totalling Rs 6.9 crore. Post this deal, Endurance will have a 56% equity stake in Maxwell.

  • Rallis India rises more than 3% in trade after Tata Chemicals acquires 97 lakh shares (4.9% equity) in the company, amounting to Rs 208.6 crore, through a block deal. This will increase Tata Chemicals' shareholding to 55.04%.

  • Patanjali Ayurved, promoter of Patanjali Foods, sells a 7% stake (2.5 lakh equity shares) in the company on Thursday and Friday.

  • Texmaco Rail & Engineering is falling despite its board's approval to raise funds up to Rs 500 crore through various financial instruments like preferential issue, rights issue, qualified institutional placement, follow-on public offer, or a combination of these. It appears in a screener of stocks which are in the 'Sell' zone.

  • Tata Elxsi falls as its net profit drops by 6.3% QoQ to Rs 188.9 crore in Q1FY24. Its revenue rises marginally by 1.5% QoQ on the back of muted growth in the software development & services and system integration & support services segments. The company appears in a screener of stocks with declining quarterly net profit.

  • Amara Raja Batteries falls more than 4% in trade as reports suggest that 2.72 crore shares (15.9% equity), amounting to Rs 1,788.3 crore, have changed hands in a large trade. Clarios ARBL Holding LP is the likely seller in this transaction.

  • Hindware Home Innovation appoints Salil Kappoor as the Chief Executive Officer of the company, with effect from today.

  • IDFC reappoints Mahendra N Shah as Managing Director, effective from October 1, 2023, for a period of one year. The board also appoints Bipin Gemani as the Whole Time Director and Chief Financial Officer, effective from July 17, 2023.

  • Macquarie maintains its ‘Outperform’ rating on HDFC Bank with a target price of Rs 2,110. The brokerage highlights that the bank witnessed low deposit growth due to seasonality in Q1, but loan growth improved on CRB (commercial and rural banking), and personal & home loans.
  • Infosys is rising as it enters into a framework agreement with one of its existing clients to provide AI and automation-led services. The deal is worth $2 billion (Rs 16,411 crore) over the next five years.

  • Sheela Foam rises as it acquires a controlling stake of 94.7% in Kurl-On Enterprises for Rs 2,035 crore. The company has also bought a 35% equity stake in HoK-Furlenco for Rs 300 crore. These deals allow Sheela Foam to expand its customer base and enter the branded furniture and rental furniture segment.

  • LTIMindtree’s Q1FY24 net profit rises 3.4% QoQ to Rs 1,151.5 crore, led by growth in the hi-tech, media and entertainment vertical and a fall in sub-contractor costs. Its revenue marginally increases by 0.1% QoQ due to weakness in the banking, financial services, and insurance segments. The stock shows up in a screener for companies with high momentum scores.

Riding High:

Largecap and midcap gainers today include Polycab India Ltd. (4,128.15, 5.45%), Supreme Industries Ltd. (3,479.00, 3.68%) and Infosys Ltd. (1,475.20, 3.67%).

Downers:

Largecap and midcap losers today include Indian Overseas Bank (25.70, -3.20%), LTIMindtree Ltd. (5,001.15, -2.60%) and One97 Communications Ltd. (840.40, -2.57%).

Volume Rockets

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

Top high volume gainers on BSE included Godrej Agrovet Ltd. (499.15, 5.62%), Polycab India Ltd. (4,128.15, 5.45%) and Saregama India Ltd. (447.75, 5.35%).

Top high volume losers on BSE were CCL Products India Ltd. (620.55, -8.59%), Amara Raja Batteries Ltd. (642.80, -6.16%) and Happiest Minds Technologies Ltd. (935.70, -6.00%).

Sheela Foam Ltd. (1,236.90, 4.20%) was trading at 13.6 times of weekly average. Vaibhav Global Ltd. (346.15, 4.89%) and Rallis India Ltd. (220.90, 2.72%) were trading with volumes 11.9 and 10.4 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

40 stocks hit their 52 week highs, while 1 stock hit their 52 week lows.

Stocks touching their year highs included - AIA Engineering Ltd. (3,509.00, 4.46%), Apollo Hospitals Enterprise Ltd. (5,162.60, -1.09%) and Bajaj Auto Ltd. (4,860.60, 0.57%).

Stock making new 52 weeks lows included - Rajesh Exports Ltd. (509.45, -2.06%).

15 stocks climbed above their 200 day SMA including Vaibhav Global Ltd. (346.15, 4.89%) and Sheela Foam Ltd. (1,236.90, 4.20%). 10 stocks slipped below their 200 SMA including Aptus Value Housing Finance India Ltd. (265.80, -3.68%) and India Cements Ltd. (210.10, -2.03%).

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The Baseline
18 Jul 2023
Chart of the Week: The biggest hits and misses by analysts over the past year
By Akshat Singh

The stock market is a fast-changing environment, where winners and losers can shift rapidly. Analysts closely monitor stocks to identify potential investment opportunities, and provide target prices that reflect their expectations for a stock's future performance. These target prices and recommendations can have a significant impact on the stock price as well.

But we all know how difficult it is, trying to predict the stock market. Picking future stock winners often feels like looking for a black cat in a dark room. In this edition of Chart of the Week, we look at a few Nifty500 stocks over the past year, comparing their actual stock performance to the analyst target upsides in June 2022. 

This analysis is based on a Trendlyne screener that tracks broker calls with the rewind feature.

Sonata Software, Varun Beverages outperform analyst targets

Sonata Software, an IT consulting & software firm, has seen a 98% rally in its stock price over the past year, surpassing the average target upside of 34.1%. It has also exceeded  KRChoksey’s expectations of an upside of 74.1% over its June ‘22 share price, beating it by 23.9 percentage points. The brokerage gave Sonata Software a target price of Rs 931 due to supply chain disruptions and a marginal increase in its international IT service segment income in Q4FY22. 

However, Sonata Software surprised analysts with an overall 20% growth in net profit in FY23. The majority of analysts including KRChoksey had projected a net profit decline of -1% to 7% in FY23. But the company benefited from lower finance and inventory expenses, and robust growth in the recently incubated healthcare and BFSI segments.

In addition, Sonata Software acquired US-based IT firm Quant Systems and received an order worth $160 million in March 2023. The company also formed multiple domestic and international partnerships. 

Now let’s consider ABB India, a heavy electricals major. It has exceeded the average target upside of 1.8% given by analysts a year ago by 73.9 percentage points. It also outperformed ICICI Direct's target upside of 16.4% by a staggering 58.6 percentage points in the past year. 

The company’s estimated net profit growth fell from 27% to 24% from May to November 2022, while the forward PE valuation stood at 65-67x during the same period. HDFC Securities believed that such high valuations would limit the upside from cyclical recovery. However, the firm surpassed analysts' average growth estimates of 24% by achieving a 95% increase in net profit, reaching Rs 1,016 crore in CY22. 

Multiple large-scale orders from companies like ArcelorMittal Nippon Steel and Kanpur Metro helped ABB record order inflows of Rs 3,125 crore, an increase of 36.4% YoY in Q1CY23. The recovery prompted UBS to upgrade the stock to ‘buy’ with a target of Rs 5,000 in June 2023. This upgrade represents an upside of 14% from the price on July 14.

The other two outperformers in our list are tyre manufacturer, Apollo Tyres and Pepsico franchisee Varun Beverages. Apollo Tyres surpassed the average broker target upside of 31.3% last year by 74.7 percentage points and the target upside of  73.6% set by ICICI Securities by 32.3 percentage points. Apollo Tyres  delivered sales growth of 17.3% YoY in FY23, as compared to estimates of 11-12%. 

The stock that surpassed broker targets the most, Varun Beverages went above the average broker target upside of 17.5% by 75.9 percentage points, also easily beating among the more optimistic calls, such as  the target upside of 23% projected by Bonanza India Research

 It has seen its stock price surge by 93.4% in the past year. Despite the impact of rising raw material prices on the industry, Varun Beverages remained resilient. It managed rising inflation in raw material costs, while benefiting from post-pandemic demand and expansion into other PepsiCo verticals. Along with strong revenue and net profit growth of 48% and 115.8% in 2022, the company's new ventures like the indigenous energy drink ‘Sting’ and additional PepsiCo factories contributed to the stock's rally. 

Aarti Industries, Adani Ports disappoint

From outperformers, let’s move on to the underperformers. Aarti Industries  had an average analyst upside of 42.5% one year ago, but its stock price fell by 38.8% in the past year. This specialty chemicals company fell short of the optimistic upside of 66.5% given by HDFC Securities

The company demerged its pharma business, Aarti Pharmalabs, which contributed around 18% to the revenue. As a result, there was an 82.3% YoY decline in net profit in Q3FY23. The net profit  fell by 58.3% in FY23, contradicting analyst expectations of 20-24% growth. 

Similarly, Amara Raja Batteries, an auto industry underperformer, saw its stock price fall by 10.3% over the year, far below the average broker target upside of 57.9%, and a target upside of 41.5% by Chola Wealth Direct in June 2022. The company’s net profit growth dropped from 52.4% QoQ in Q2 to -37.2% QoQ in Q4FY23. The  rising raw material prices due to the Russia-Ukraine war, led to shrinking margins. This downward trend in profitability has persisted from FY21 to FY23. 

Adani Ports & SEZ, an Adani Group stock, has fallen by 2% in the past year, but a year ago had an average broker target upside of 62.3% and a target upside of 26.4% by ICICI Direct. This drop was due to the shock Hindenburg report release in January 2023, which alleged accounting fraud and stock manipulation within the conglomerate. This led to an average fall in share price of 23% across the group’s stocks over the year. 


In the software & services sector, MPhasis had an average analyst upside of 52% a year ago, and a target upside of 52.6% by Anand Rathi. But it fell 10.8% in the past year with the decline in the broader IT sector. The company’s insurance and banking & financial services segments, which form around 60% of its revenue, have been sequentially declining from Q2FY22. Following the collapse of Silicon Valley Bank on March 10, the stock saw a correction of around 18.1% in the subsequent 12 trading sessions. The fall was driven by concerns regarding the company's exposure to the bank.

Trendlyne Marketwatch
Trendlyne Marketwatch
17 Jul 2023
Market closes higher, KRChoksey maintains its ‘Buy’ rating on Wipro

Trendlyne Analysis

Nifty 50 closed at 19,711.45 (147.0, 0.8%), BSE Sensex closed at 66,589.93 (529.0, 0.8%) while the broader Nifty 500 closed at 16,872.05 (106.6, 0.6%). Of the 1,989 stocks traded today, 1,179 were gainers and 750 were losers.

Indian indices extended their gains from the afternoon session and closed in the green, with the Nifty 50 closing at an all-time high of 19,711. The volatility index, Nifty 50 VIX, increased by 6% and closed at 11.3 points. Ashok Leyland won an order worth Rs 800 crore for the supply of logistics vehicles, field artillery tractors and gun-towing vehicles to the Indian army.

Nifty Smallcap 100 and Nifty Midcap 100 closed in the green, following the benchmark index. Nifty Media and Nifty Bank closed sharply higher compared to Friday’s closing levels. According to Trendlyne’s sector dashboard, media emerged as the top-performing sector of the day with a rise of over 2.7%.

Most European indices trade in the red as China’s GDP numbers dampened investor sentiment. US indices futures trade mixed as investors parse through earnings reports from big banks. Citi Bank held its ‘Buy’ rating on Nvidia despite its rally of 211% year to date. According to Citi, the growing demand for graphic processing units and the China ban will help sustain Nvidia’s growth momentum.

  • Ashok Leyland sees a long buildup in its July 27 future series as its open interest rises 7.7% with a put-call ratio of 0.65.

  • Ircon International is rising as it bags an order worth Rs 144 crore from N F Railway Construction for the supply, installation and commissioning of integrated tunnel communication systems in the Jiribam-Khongsang section.

  • Karur Vysya Bank rises as its net profit increases by 56.7% YoY in Q1FY24 to Rs 358.6 crore and its net interest income grows by 20.3% YoY. Its asset quality improves with net and gross NPAs declining by 134 bps and 429 bps respectively. The company appears in a screener of stocks with strong annual EPS growth.

  • KRChoksey maintains its ‘Buy’ rating on Wipro and raises the target price to Rs 486 from Rs 479. This implies an upside of 16.9%. The brokerage is positive about the IT giant’s prospects on the back of its large deal wins and increasing engagement with existing clients. It also believes that the stock is trading at an attractive valuation. It expects the company’s net profit to grow at a CAGR of 13% over FY23-25.

  • Netweb Technologies India's Rs 631 crore IPO gets bids for 2.3X the available 88.6 lakh shares on offer on the first day of bidding. The retail investor quota gets bids for 3X of the available 44.9 lakh shares on offer.

  • Power Grid Corporation of India's board approves an investment of Rs 4067.3 crore for advanced metering infrastructure projects. The board has also revised the investment proposal for a pilot data centre at Power Grid's Manesar substation to Rs 713.8 crore.

  • Mirae Asset Capital Markets India predicts a promising quarter for Varun Beverages. The company is expected to benefit from favourable weather conditions, organic growth, capacity expansions, and plans to expand distribution to remote areas of the country.

  • Rallis India is rising despite its Q1FY24 net profit declining 6% YoY to Rs 63 crore, while its revenue falls 9.4% YoY. This decline in growth is attributable to weakness in the crop care segment on the back of steep price drops, delayed monsoon and high inventories. According to Trendlyne’s Forecaster, the consensus recommendation from 14 analysts for the company is ‘Sell’.

  • Media stocks like Zee Entertainment Enterprises, TV18 Broadcast and New Delhi Television rise more than 3% in trade. All constituents of the broader Nifty Media index are also trading in the green, aiding it to rise more than 2%.

  • Citi maintains its 'Buy' rating on Federal Bank with a target price of Rs 160 as the brokerage expects it to surpass system-wide credit growth by 4-7% points across the board. It also anticipates faster TD pricing, scale-up of high-yielding products, and equity infusion to boost NIMs in the coming quarters.

  • HDFC Bank is rising as its Q1FY24 standalone net profit increases 30% YoY to Rs 11,951.8 crore and its net interest income (NII) grows by 21% YoY. The bank’s asset quality marginally improves as its Net and Gross NPAs decline by 5 bps and 11 bps YoY respectively. The stock shows up in a screener for companies with improving cash flows and high durability.

  • Larsen & Toubro rises as it bags a large order of Rs 2,500 to 5,000 crore for its water & effluent treatment business. The order is given by the State Water & Sanitation Mission, Uttar Pradesh, to construct a water supply scheme in Ballia and Firozabad. The project involves designing and constructing an intake structure, a water treatment plant, and transmission & distribution pipelines.

  • Ashok Leyland hits a 52-week high of Rs 174.6 as it wins a defence sector order worth Rs 800 crore for the supply of logistics vehicles, field artillery tractors and gun-towing vehicles to the Indian army.

  • The Union Power Ministry expects to raise approximately Rs 15,000 crore through asset monetization in FY24, a figure close to the previous year's estimate of rs 15,308 crore. They could fulfil their objective of Rs 27,000 crore in FY24 with a strong pipeline of assets from Power Grid, NHPC, SJVN, and NTPC.

  • JSW Energy is falling as its net profit decreases by 48.3% YoY to Rs 289.9 crore in Q1FY24. Its revenue also drops by 3.3% YoY due to lower realization in the thermal sector and a decline in coal prices. It appears in a screener of stocks in the 'Sell' zone.

  • Nestle India is rising as the Odisha state government approves the company’s proposal to set up a food processing unit in Mundaamba, Khordha district. The firm plans to invest Rs 894.1 crore in the plant.       

  • GTPL Hathway is surging as its revenue grows by 22.8% YoY to Rs 774.4 crore in Q1FY24, owing to increased revenue from the cable TV and internet services segments. However, the net profit falls by 17% YoY to Rs 35.9 crore due to a rise in finance, employee benefit, and operating expenses. The company features in a screener of stocks with declining net profit and profit margin (YoY).                                                                                                                

  • Jefferies maintains its 'Buy' rating on HDFC Bank with a target price of Rs 2,100. According to brokerage, it is the fastest growing bank with the highest RoE in the 100 billion dollar market cap category. It expects a 17% CAGR in profit and a 16% growth in RoE, driven by asset growth in housing, CRB, and consumption retail segments.
  • Angel One falls as the National Stock Exchange passes an order against the company for allegedly failing to monitor the operations of its Authorized Persons (APs). As a result, the company has to pay a penalty of Rs 1.7 crore and is prohibited from onboarding new APs for six months.

  • Rakesh Jhunjhunwala's portfolio sells a 1.4% stake in Autoline Industries in Q1FY24. It now holds a 2.5% stake in the company.

  • Ashish Kacholia adds SG Finserve to his portfolio in Q1FY24. He buys a 1.2% stake in the company.

  • Vijay Kedia buys a 6.5% stake in Atul Auto in Q1FY24. He now holds a 14.9% stake in the company.

  • JK Lakshmi Cement rises as it invests an additional Rs 350.1 crore in its subsidiary, Udaipur Cement Works (UCW). With this investment, the company acquires a 2.5% equity stake (19.5 crore shares) in UCW. As a result, its total shareholding in UCW increases from 72.5% to 75%.

  • Route Mobile is falling as its promoter plans to sell the entire 57.5% stake of expanded voting share capital to Proximus group. The transaction is valued at Rs 5,922 crore, with a share price of Rs 1,626.4.
  • Orient Electric's MD and CEO Rajan Gupta resigns from his position, effective from July 14. In his place, Desh Deepak Khetrapal has been appointed as the MD of the company for a one-year term.

  • Bandhan Bank is falling as its net profit declines by 18.7% YoY to Rs 721.1 crore in Q1FY24. However, revenue grows 11.5% YoY on the back of an increase in revenue from the retail and commercial segments. The bank's asset quality improves at gross NPA drops by 49 bps YoY. It shows up in a screener of stocks where mutual funds have decreased their shareholding in the past quarter.

  • Archean Chemical Industries rises as its MD and promoter Ranjit Pendurthi acquires a 1.3% equity stake (16.1 lakh shares) in the company. His shareholding now stands at approximately 23% of the paid-up share capital.

  • Avenue Supermarts is rising as its net profit grows 2.5% YoY to Rs 658.8 crore in Q1FY24. Revenue increases 18.2% YoY on the back of growth in general merchandise sales. But its EBITDA margin declines by 130 bps YoY due to higher expenses. It appears in a screener of stocks where analysts have upgraded their recommendation and target price over the past three months.

Riding High:

Largecap and midcap gainers today include Zee Entertainment Enterprises Ltd. (229.65, 6.32%), Indus Towers Ltd. (171.55, 4.73%) and Adani Transmission Ltd. (770.45, 3.79%).

Downers:

Largecap and midcap losers today include JSW Energy Ltd. (293.30, -3.71%), Avenue Supermarts Ltd. (3,713.55, -3.26%) and Zomato Ltd. (80.15, -2.91%).

Crowd Puller Stocks

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

Top high volume gainers on BSE included Sterling and Wilson Renewable Energy Ltd. (333.50, 15.66%), Indiabulls Real Estate Ltd. (68.30, 10.97%) and Piramal Pharma Ltd. (101.10, 9.18%).

Top high volume losers on BSE were Route Mobile Ltd. (1,488.00, -8.45%), Angel One Ltd. (1,587.85, -7.05%) and CCL Products India Ltd. (678.90, -6.99%).

Vaibhav Global Ltd. (330.00, 8.64%) was trading at 13.6 times of weekly average. Ratnamani Metals & Tubes Ltd. (2,628.05, 7.57%) and Latent View Analytics Ltd. (390.40, 5.50%) were trading with volumes 11.6 and 10.5 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

71 stocks took off, crossing 52-week highs,

Stocks touching their year highs included - Apollo Hospitals Enterprise Ltd. (5,219.30, 0.92%), Ashok Leyland Ltd. (172.40, 0.38%) and Bajaj Electricals Ltd. (1,288.05, 4.85%).

23 stocks climbed above their 200 day SMA including Sterling and Wilson Renewable Energy Ltd. (333.50, 15.66%) and Vaibhav Global Ltd. (330.00, 8.64%). 7 stocks slipped below their 200 SMA including Aptus Value Housing Finance India Ltd. (275.95, -3.31%) and Avenue Supermarts Ltd. (3,713.55, -3.26%).

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The Baseline
14 Jul 2023
Post Rakesh Jhunjhunwala, is Rare Enterprises more cautious in its stock picks?
By Abhiraj Panchal

Rakesh Jhunjhunwala, also known as the Big Bull, passed away in August 2022, after an illness. It marked the end of a storied, celebrated career as an investor - Jhunjhunwala’s picks were closely followed in the Indian stock market, and his buys and sells could trigger a market-wide frenzy. He started his investment journey in 1985 with Rs 5,000, and at the time of his death, had an estimated net worth of $5.8 billion. 

According to Forbes' Rich List, Jhunjhunwala was the 36th richest person in the country. One of his notable early successes was his investment in Tata Tea, where he purchased 5,000 shares at Rs 43 each in 1986 and saw the price rise to Rs 143 in three months. Some of his other recent portfolio investments included Crisil, Titan, Praj Industries, and Aurobindo Pharma

Jhunjhunwala owned the stock trading firm Rare Enterprises. Since his passing, his portfolio has been managed by the Rare Enterprises team, headed by Utpal Sheth and Amit Goela. 

Jhunjhunwala was a famously hands-on investor. He got into the details, regularly quizzed company management, and attended earnings calls – he would dial into the Titan quarterly earnings calls frequently. With new management now at the helm of Rare Enterprises, it is only natural to question whether its investment strategy has changed. We take a look at how the portfolio has evolved post-Rakesh Jhunjhunwala.

Net worth dropped for two consecutive quarters under Rare team

The Big Bull’s net worth rose sequentially for each quarter from Q4FY20 to Q3FY22, increasing approximately 4X during that period. But after his passing, the net worth dropped for two consecutive quarters from Rs 34,804 crore in Q3FY22, to Rs 25,397.5 crore in Q1FY23. The portfolio has since then shown some recovery as Indian markets rose.

Jhunjhunwala's portfolio net worth stood at Rs 31,988.1 crore in Q4FY23. The fall in net worth was driven by declines in holding values, not stakes sales. 

The provisional net worth for Q1FY24 stands at Rs 38,885.3 crore, up 21.6% since the previous quarter, but shareholding filings for the quarter are still pending

Slight changes in market cap preferences at Rare

In Q1FY23, Rakesh Jhunjhunwala held stakes in 9 large-cap companies, 11 mid-cap companies, 13 small-cap and 3 micro-cap companies.

Under Rare Enterprises, there have been some modifications in the portfolio's market cap preferences. The firm holds stakes in nine large-cap companies, while the number of mid-cap and small-cap companies has reduced to 7 and 11 respectively. It had also invested in a new microcap, Raghav Productivity Enhancers, by  Q1FY23. 

What stocks did Rare add and reduce stakes in? 

The management team at Rare Enterprises made changes to the portfolio by adding new stocks and reducing stakes in others. In Q3FY23, Rare purchased a 0.9% stake in Rallis India (an agrochemicals company) and Federal Bank, taking the total stakes up to 10.3% and 3.5%, respectively. It also bought 0.8% and 0.6% stakes in banking and finance companies Geojit Financial Services and Canara Bank, during the same quarter. It also increased its stakes in Tata Motors and NCC

Major changes in terms of additions by Rare came in Q4FY23. The firm added Raghav Productivity Enhancers (other industrial goods company) and Sun Pharma Advanced Research (a pharma company) to the portfolio. It bought 5.1% and 1.9% stake in them respectively.


During Q3FY23 and Q4FY23, Rare Enterprises cut stakes in Anant Raj (a realty company), Man Infraconstruction (construction and engineering company) and cement manufacturer Orient Cement. The firm sold a 1.6% stake in pharma company Dishman Carbogen Amcis in Q3FY23, before reducing its stake below 1% in Q4FY23.  Among other major stake cuts, Rare sold a 1% stake in Singer India (it now holds 7%). 

Sector preferences remain unchanged

There’s not much difference in the sector preferences of Rare Enterprises and Rakesh Jhunjhunwala. The top five preferred sectors are the same. Textiles, apparel and accessories continues to be the top preferred sector with 36.6% of the total portfolio value in Q4FY23, the same as Q1FY23. 

The banking and finance sector follows with a concentration of 25.7% in Q4FY23 (down 1.3 percentage points since Q1FY23). Retailing makes up 10% of the portfolio in Q4FY23, marginally lower than Q1FY23.

However, there have been some other changes in the portfolio since Rare's control. The general industrials and consumer durables sectors occupy a smaller section, while the healthcare equipment & supplies sector is no longer part of the portfolio, as compared to Q1FY23.

Rare Enterprises' newly added stock rises by 12.2% since the addition

D B Realty, Man Infraconstruction and Indian Hotels were the top three performing companies in Q1FY23, with one-year price changes of 121.1%, 98.8% and 59.7%, respectively. Currently, the best-performing stocks in the portfolio are Karur Vysya Bank, Aptech and NCC, all showing a one-year price change of above 100%. Raghav Productivity Enhancers, which was added by Rare, increased by 12.2% since its addition in Q4FY23

Comparing risk preferences: Rare Enterprises vs Rakesh Jhunjhunwala

When we compare the three-month and one-year beta values, Rakesh Jhunjhunwala’s portfolio had an average three-month beta of 1 and a one-year beta of 1.1 in Q1FY23, making it more volatile than the overall stock market (the stock market beta is considered to be 1, any stock with a beta more than 1 is more volatile, and less than 1 is less volatile). 

In comparison, the current average beta under Rare Enterprises is 0.6 for three months and 0.8 for one year, making it less volatile than it used to be. This suggests that Rare may be more risk averse compared to Rakesh Jhunjhunwala in their stock picks. 

Among the new stocks added by Rare Enterprises, Raghav Productivity Enhancers and Sun Pharma Advanced Research have one-year betas of 1.2 and 0.5, respectively. Stocks in which Rare reduced its stake to below 1% - Anant Raj, Man Infraconstruction and Orient Cement - have betas above 1, indicating that they are relatively riskier stocks.

Rare Enterprises takes a cautious turn

Despite a few additions to the portfolio, including a small-cap and a mid-cap company, Rare Enterprises has largely maintained the sector preferences established by Rakesh Jhunjhunwala. However, there are signs that Rare is more risk-averse compared to the renowned risk-taker and finder of diamonds in the rough, Rakesh Jhunjhunwala. 

While the long-term outcomes of this approach are yet to unfold, it remains to be seen whether Rare's more cautious approach will prove fruitful in India’s stock market. India’s GDP recovery means that established players in key sectors will rise with the rising tide of the economy. But the real skill of Jhunjhunwala as a stock market investor was in finding and betting on young, fast-growing companies early. Investors will be watching to see if the old magic is still there. 

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The Baseline
14 Jul 2023
Five Interesting Stocks Today
  1. CEAT: This auto tyre manufacturer has risen by 17.5% over the past month till Friday. The uptrend is driven by a healthy outlook for the company on the back of analysts seeing robust demand and improving margins. The management’s future plans have also helped boost positive sentiment around the stock. 

In an investor meet last month, the company announced plans till FY26, which include increasing market share across segments. CEAT expects to maintain its leadership position in the 2-wheeler segment and become the market leader in the PV segment. The firm plans to achieve this through associations with OEMs, new launches in the EV space, and a focus on SUVs. It also plans to double its revenue from international business. 

In an interview, Arnab Banerjee, MD & CEO of CEAT, said that the firm is focusing on expanding the production capacity of its agricultural radial tyres. He added, “This is the most profitable segment, and the capex is going towards it.” Demand for these tyres is primarily from international markets. 

For FY24, the company expects volumes to grow in the low-to-mid single digits, driven by strong demand in the replacement segment. It anticipates export market recovery to be slow due to high inflation. However, the management expects raw material costs to remain steady, allowing them to pass on the benefits to customers.  The stock shows up in a screener for companies benefiting from lower crude oil prices. Prabhudas Lilladher believes that any impact from lacklustre exports, moderate growth and high-interest costs on the bottom line will be offset by lower commodity prices and cost controls in FY24.

  1. Tata Consultancy Services: This IT consulting & software company rose 2.5% on Thursday, despite its net profit falling 2.8% QoQ to Rs 11,047 crore in Q1FY24. The positive reaction in TCS’ share price was likely due to a 2% growth in its order book QoQ, to $10.2 billion, a five quarter high. Its net profit also beat Trendlyne’s Forecaster estimates by 1.2%. The company shows up in a screener of stocks with falling profit margins (QoQ).

In Q1FY24, the IT giant’s revenue remained flat QoQ at Rs 59,381 crore, narrowly missing Forecaster estimates. It was impacted by reduced revenue from the BFSI, communication, and technology & services segments, which together contribute to 46% of the company’s revenue. According to the management, the demand slowdown was due to macroeconomic concerns, which led to the reprioritization of deals, and pauses and deferrals in non-critical projects. However, K Krithivasan, Chief Executive Officer (CEO) and Managing Director of the company expects an increase in long-term demand from the rise of new technologies that use generative AI.

ICICI Securities maintains a ‘Buy’ rating on the stock with a reduced target price of Rs 3,780, indicating a potential upside of 7.5%. The brokerage has reduced the target price due to uncertainty about demand in the banking, hi-tech and telecom sectors. It expects the company’s revenue to grow at a CAGR of 7.8% over FY23-26.

  1. Craftsman Automation: Thisauto parts and equipment manufacturer has seen its stock price rise by 16.9% in the past week, while the broader benchmarkNifty Auto increased only 0.8%. The stock is currently trading at a 52-week high, according toTrendlyne’s Technicals. The firm is diversifying its business beyond the commercial vehicle segment. It acquired DR Axion in December 2022, which has resulted in a significant shift in its revenue composition. The contribution from the passenger vehicle segment has increased from 7% to 30%.The firm has also received export orders in the tractors and construction equipment segment.

Craftsman Automation is also engaging with EV manufacturers and has received orders to supply e-axles for an EV player. The firm plans a capex of Rs 320 crore in FY24 for the refurbishment of outdated equipment and semi-automation in material handling. The firm is also looking to reduce its debt by 20% during the same fiscal year. The stock shows up in ascreener for companies with high TTM EPS growth.

The management has guided revenue to grow by 20% in FY24, aided by higher volumes from new customers and a ramp-up in the export of powertrain orders from existing clients. Domestic growth in the first half of FY24 will be driven by the passenger vehicle segment, while the construction and farm machinery division is expected to contribute in the second half.

According toMotilal Oswal, the firm’s ability to establish a presence in the EV segment, and its healthy order wins across the board will help its revenue growth. It has managed to create niche products and also has superior capital efficiency, resulting in higher growth rates compared to the industry. The brokerage maintains a ‘Buy’ rating on the firm.

  1. PCBL: This chemicals & petrochemicals company has had a volatile week. It fell over 3% on Wednesday after hitting its 52-week high of Rs 178.3 on Monday. PCBL rose around 2% on Monday after it commissioned the first phase of its capacity expansion in specialty chemicals at Mundra, Gujarat. But the rise was short-lived as the stock fell post its Q1FY24 results announcement.

    Its net profit fell 15% YoY to Rs 109.2 crore in Q1FY24 due to a higher tax rate of 29%, as against 21.5% in Q1FY23. It also reported a 4.4% YoY drop in its revenue to Rs 1,347 crore. This is likely due to the 4.7% YoY fall in the carbon black segment, which contributes to around 97% of the total revenue. Lower realisations during the quarter also accounted for the revenue decline. 

PCBL’s newly commissioned project in Mundra, which was announced on Monday, has a specialty chemical production capacity of 20,000 MTPA (metric tonnes per annum). This will enable the company to meet growing demand. Once completed,  the Mundra plant will have a production capacity of 40,000 MTPA. 

Following the capacity expansion announcement and results, ICICI Securities has maintained its ‘Buy’ rating on the company and increased the target price to Rs 200 from Rs 180. This implies an upside of 26.7%. The brokerage believes that the steady growth in domestic demand augurs well for the company in the coming years. As a result, it appears in a screener of companies where brokers have upgraded their recommendation or target price in the past three months. 

  1. Indian Oil Corp: This oil and gas company hit its 52-week high of Rs 101.45 on Monday. The price rise came after the board’s approval for a capital raise of up to Rs 22,000 crore through a rights issue. This may result in a dilution of 13% in shareholding for existing investors. The funds raised from the rights issue are expected to be spent on Indian Oil’s capex and emission-reduction plans.

Reports suggest that the fundraising is likely part of the government’s initiative to support state-run fuel retailers’ net zero carbon emission projects. This aligns with the Centre’s plans in its 2023-24 budget. 

On the same day, Indian Oil Corp also approved a 50:50 joint venture (JV) with Sun Mobility (Singapore) to establish a battery-swapping business in India. Indian Oil will invest Rs 1,800 crore in the JV till FY27. The board has also approved an investment of $78.3 million in its Singapore arm for the acquisition of a stake in Sun Mobility.

Indian Oil Corp features in a screener for stocks with target price upgrades by brokerages in the past three months. Motilal Oswal remains optimistic and gives a ‘Buy’ call on the back of the company’s plan to commission various projects over the next two years and its margin recovery in refining. According to Trendlyne’s Forecaster, the company has a consensus recommendation of ‘Buy’ from 30 analysts.  

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
14 Jul 2023
Market closes higher, Monte Carlo Fashions Q1 sales rise 20% QoQ

Trendlyne Analysis

Nifty 50 closed at 19,564.50 (150.8, 0.8%), BSE Sensex closed at 66,060.90 (502.0, 0.8%) while the broader Nifty 500 closed at 16,765.45 (141.6, 0.9%). Of the 1,954 stocks traded today, 1,287 were in the positive territory and 606 were negative.

Indian indices extended their gains from the afternoon session and closed in the green, with the Nifty 50 closing at 19,564. The volatility index, Nifty 50 VIX, dropped by 2.4% and closed at 10.7 points. Q1FY24 exports of India's services and merchandise declined by 7.3% YoY to $182.7 billion, while imports dropped by 10.2% to $205.3 billion.

Nifty Smallcap 100 and Nifty Midcap 100 closed in the green, following the benchmark index. Nifty IT and Nifty Metal closed sharply higher compared to Thursday’s closing levels. All other major sectoral indices closed higher. According to Trendlyne’s sector dashboard, software & services emerged as the top-performing sector of the day with a rise of over 3.7%.

Most European indices trade in the green, except for Germany’s DAX trading lower. US indices futures trade flat as earnings reports from big banks like JP Morgan, Citigroup and Wells Fargo are awaited later today. The shutdown of Libyan oil fields due to leakage resulted in higher Brent crude prices.

  • Money flow index (MFI) indicates that stocks like UTI Asset Management, Star Health and Allied Insurance, Indian Bank and Mahindra Holidays & Resorts India are in the overbought zone.

  • Unichem Laboratories rises as its net loss narrows by 97.1% YoY to Rs 0.67 crore in Q1FY24 on the back of reduced inventory and finance costs. Its revenue rises by 36.7% YoY. The company appears in a screener of stocks with increasing quarterly profits.

  • Orient Electric falls 6.4% in trade today, causing it to appear in a screener of stocks trading below the third support or S3 level. The stock is in the 'Sell' zone and has an analyst consensus of 'Buy'.

  • Gland Pharma rises as the US FDA concludes its inspection of the company's Dundigal Facility in Hyderabad, with one 483 observation issued. The inspections were conducted from July 2 to 14. The company appears in a screener of stocks with improving book value per share.

  • Hardware technology & equipment, forest materials and transportation sectors rise by more than 29% over the past 90 days.

  • Great Eastern Shipping Co and SKF India touch their all-time highs of Rs 820 and Rs 5,350 respectively. While the former has risen by 9% over the past month, the latter increased by 10.2%.

  • India's merchandise exports in June amount to around $33 billion, while imports reach $53.1 billion. Its trade deficit narrows to $20.1 billion, compared to $22.1 billion in May.

  • Monte Carlo Fashions is rising as its sales in Q1FY24 rise 20% QoQ, driven by healthy demand during the festive and wedding seasons in India. The stock shows up in a screener for companies with book value per share increasing over the past two years.

  • Utkarsh Small Finance Bank's Rs 500 crore IPO gets bids for 51.26X the available 12.1 crore shares on offer on the third day of bidding. The retail investor quota gets bids for 58.42X of the available 2.2 crore shares on offer.

  • Axis Direct downgrades its rating on HCL Technologies to ‘Hold’ from ‘Buy’ and lowers the target price to Rs 1,200 from Rs 1,245. This implies an upside of 4.5%. The brokerage lowers its rating as the IT giant misses its revenue and profit estimates for Q1FY24. Also, given the delay in spending by clients and the supply-side constraints still persisting, the brokerage sees a challenging environment for the company in the near term.

  • Granules India rises as its wholly owned foreign subsidiary, Granules Pharmaceuticals, gets approval from the USFDA for its abbreviated new drug application (ANDA) for Acetaminophen and Ibuprofen tablets. It appears in a screener of stocks with low debt.

  • Media stocks like Zee Entertainment Enterprises, Dish TV India, New Delhi Television, Navneet Education and Sun TV Network are rising in trade. Barring PVR INOX, all other constituents of the broader sectoral index, Nifty Media, are trading in the green.

  • India’s WPI inflation declines to -4.1% in June from -3.5% in May. The decrease is due to a fall in the prices of mineral oils, basic metals and crude petroleum, among others.

  • Patanjali Foods is surging as its promoters decide against exercising the oversubscription option from its offer for sale. The company announced the sale of 7% equity shares through an AFS on Thursday.

  • GMR Power and Urban Infra is rising as it receives orders from Purvanchal Vidyut Vitran Nigam and Dakshinanchal Vidyut Vitran Nigam to implement a smart metering project in Uttar Pradesh. The company will install, integrate and maintain 75.7 lakh smart meters. The stock shows up in a screener for companies with strong annual EPS growth.

  • According to economists, falling crude oil prices are unlikely to reduce domestic inflation as the benefits from the decline in prices are yet to be passed on to retail customers.

  • IT stocks like Mphasis, Tech Mahindra, Coforge, L&T Technology Services and LTIMindtree are rising in trade. The broader sectoral index, Nifty IT, is also trading in the green.                                                                                                 

  • Oil and Natural Gas Corp (ONGC) touches a new 52-week high of Rs 169.8 per share as it reportedly signs three agreements with Indradhanush Gas Grid (IGGL). Under these agreements, ONGC will utilise IGGL's pipelines to supply natural gas from the Jorhat, Silchar and Tripura facilities to its customers in the northeastern states.                                      

  • Nalin Gupta, Managing Director of J Kumar Infra, says the company is expected to grow at a CAGR of 15-16% in the next few years. He adds that its EBITDA margin is at 14-15% and aims to improve margins in the future.
  • JBM Auto touches a 52-week high as it receives an order to supply around 5,000 electric buses to different STUs in Gujarat, Haryana, Delhi, Telangana, Orissa, and other regions. The company will also supply these buses to multiple Fortune 500 organisations and top corporates in India. It appears in a screener of stocks with strong momentum.

  • Shares of Senco Gold debut on the bourses at a 35.6% premium to the issue price of Rs 317. The Rs 405 crore IPO has received bids for 77.3 times the total shares on offer.

  • Omers Administration Corp sells a 2.1% stake in CSB Bank for approx Rs 105.8 crore in a bulk deal on Thursday.

  • Morgan Stanley maintains its 'Equal-weight' rating on Federal Bank with a target price of Rs 145. The brokerage says NIM (net interest margin) recovery will be slow-paced. The bank's net profit has risen 42% YoY to Rs 854 crore in Q1FY24, and NII increased by 19.6%.
  • Vanderbilt University sells a 0.58% stake in Century Textiles & Industries for approx Rs 58.7 crore in a bulk deal on Thursday.

  • Angel One rises as its net profit increases by 22% YoY to Rs 181.6 crore in Q1FY24. Its revenue also grows by 18% YoY on the back of robust growth in client base and orders. The company appears in a screener of stocks with improving quarterly net profit.

  • Realty stocks like Macrotech Developers, Godrej Properties, Phoenix Mills, Mahindra Lifespace Developers and Oberoi Realty are rising in trade. Barring Sobha, all other constituents of the broader sectoral index, BSE Realty Index, are trading in the green.

  • Wipro’s Q1FY24 net profit falls 6.7% QoQ to Rs 2,870.1 crore, while its revenue declines by 1.6% QoQ. The company’s performance is impacted by the weakness in the banking and insurance sectors. The consensus recommendation on the company from 40 analysts is ‘Sell’.

Riding High:

Largecap and midcap gainers today include Zee Entertainment Enterprises Ltd. (216.00, 8.60%), MphasiS Ltd. (2,069.55, 7.67%) and L&T Technology Services Ltd. (4,094.95, 5.41%).

Downers:

Largecap and midcap losers today include REC Ltd. (160.30, -3.02%), Max Healthcare Institute Ltd. (600.75, -2.97%) and PB Fintech Ltd. (741.85, -2.75%).

Volume Rockets

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

Top high volume gainers on BSE included JBM Auto Ltd. (1,466.60, 11.44%), Mastek Ltd. (2,151.50, 9.29%) and Aptus Value Housing Finance India Ltd. (284.30, 8.28%).

Top high volume losers on BSE were Angel One Ltd. (1,708.30, -2.06%), Power Grid Corporation of India Ltd. (240.05, -1.25%) and Bosch Ltd. (18,901.55, -1.20%).

Sonata Software Ltd. (1,053.65, 6.40%) was trading at 9.9 times of weekly average. Saregama India Ltd. (428.50, 7.31%) and Welspun India Ltd. (103.15, 7.84%) were trading with volumes 6.9 and 6.6 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

50 stocks hit their 52-week highs,

Stocks touching their year highs included - 3M India Ltd. (28,285.00, -1.93%), Bajaj Holdings & Investment Ltd. (7,534.75, 1.71%) and Zydus Lifesciences Ltd. (595.35, 0.66%).

20 stocks climbed above their 200 day SMA including Aptus Value Housing Finance India Ltd. (284.30, 8.28%) and MphasiS Ltd. (2,069.55, 7.67%). 6 stocks slipped below their 200 SMA including Orient Electric Ltd. (240.65, -6.76%) and Sobha Ltd. (555.50, -1.84%).

Trendlyne Marketwatch
Trendlyne Marketwatch
13 Jul 2023
Market closes higher, Federal Bank's Q1FY24 net profit rises 42.1% YoY to Rs 853.7 crore

Trendlyne Analysis

Nifty 50 closed at 19,413.75 (29.5, 0.2%), BSE Sensex closed at 65,558.89 (165.0, 0.3%) while the broader Nifty 500 closed at 16,623.90 (-17.2, -0.1%). Of the 1,968 stocks traded today, 605 were on the uptrend, and 1,311 went down.

Indian indices fell from their day highs but managed to close marginally higher, with the Nifty 50 settling above the 19,400 mark. The Indian volatility index Nifty VIX, stayed flat and below 11%. Hindalco Industries rose over 2.5% and closed in the green, after the company sold its land in Kalwa, Maharashtra, to Century Textiles and Industries, a wholly owned subsidiary of Birla Estates, for Rs 595 crore.

Nifty Midcap 100 and Nifty Smallcap 100 closed in the red, underperforming the benchmark index. Nifty Metal and Nifty IT closed higher than Wednesday’s close. According to Trendlyne's sector dashboard, Software & Services was the top-performing sector of the day. 

European indices traded in the green, in line with the Asian indices, which closed higher amid positive global cues. US index futures also traded in the green, extending their gains from Wednesday. Brent crude oil futures traded marginally higher after rising 3% in the past two trading sessions.

  • Relative strength index (RSI) indicates that stocks like Olectra Greentech, Mazagon Dock Shipbuilders, Exide Industries and Kalyan Jewellers India are in the overbought zone.

  • Bhansali Engineering Polymers is falling as its Q1FY24 revenue declines 12.7% YoY to Rs 294.5 crore. However, its net profit grows 5.8% YoY to Rs 50.5 crore, owing to a reduction in expenses and tax. The company shows up in a screener of stocks with reducing RoCE over the past two years.

  • 5Paisa Capital rises to a new 52-week high of Rs 444.3 as its net profit jumps by 96.8% YoY to Rs 14.5 crore in Q1FY24 on the back of lower finance costs. Its revenue also increases marginally by 0.6% YoY. The company appears in a screener of stocks with increasing quarterly profits.

  • Hindalco Industries rises as it sells its land in Kalwa, Maharashtra, to Century Textiles and Industries, a wholly owned subsidiary of Birla Estates, for Rs 595 crore. It appears in a screener of stocks with strong momentum.

  • Federal Bank's Q1FY24 net profit rises 42.1% YoY to Rs 853.7 crore, while net interest income increases 19.6% YoY. The rise in income is driven by the retail banking segment. The bank features in a screener for stocks with improving net profit over the past four quarters.

  • Citi India expects CPI to increase to 6.4% in July and 6.1% in August if tomato prices remain unchanged. The brokerage raises its headline CPI forecast to 5.3% from the previous 4.9% and lowers the average core CPI estimate to 4.6% from 4.8% earlier.

  • Sterling and Wilson Renewable Energy’s Q1FY24 net loss narrows by 73% YoY to Rs 95.5 crore. However, its revenue declines 57.3% YoY due to a 59.8% YoY fall in its EPC (Engineering, Procurement and Construction) segment.

  • Lupin falls as US FDA issues form 483 with two observations to its Nagpur oral solid dosage facility. The inspections were conducted between July 3 to 11. The company appears in a screener of stocks with decreasing promoter shareholding.

  • Patanjali Foods falls as its promoter, Patanjali Ayurved, proposes an offer for sale for a 7% equity stake (2.5 crore shares). The shares will be offered at Rs 1,000 per share, and the oversubscription option will represent up to 9% equity shares (32,579,537 shares) of the company. The offer is scheduled to take place on July 13 & 14.

  • Utkarsh Small Finance Bank's Rs 500 crore IPO gets bids for 16.2X the available 12.1 crore shares on offer on the second day of bidding. The retail investor quota gets bids for 36.7X of the available 2.2 crore shares on offer.

  • India's Index of Industrial Production (IIP) grows by 5.2% in May, up from 4.5% in April, driven by robust growth in the manufacturing and mining sectors.

  • G R Infraprojects is rising as it receives a letter of award for the construction of a four-lane highway worth Rs 737.2 crore in Uttar Pradesh. The stock shows up in a screener for companies with improving cash flows and high durability scores.

  • IT stocks like Tata Consultancy Services, Infosys, Coforge, LTIMindtree and Mphasis are rising in trade. The broader sectoral index, Nifty IT, is also trading in the green.

  • HDFC Securities downgrades its rating on Alkyl Amines Chemicals to ‘Sell’ from ‘Reduce’ and lowers the target price to Rs 2,100 from Rs 2,294. This implies a downside of 15.6%. The brokerage believes the company’s margins and realisations will decline due to increased dumping of products by China amid a correction in raw material prices.

  • DreamFolks is rising as it announces a strategic collaboration with Plaza Premium Group to expand its global lounge network. The collaboration will see the inclusion of more than 340 Plaza Premium lounges in over 70 international airports into DreamFolks’ global lounge network starting from July 24.

  • Godrej Properties touches a new 52-week high of Rs 1,638.5 after emerging as the highest bidder in an e-auction held by the Haryana Shehri Vikas Pradhikaran. The company has signed a letter of intent for the development of two group housing plots on Golf Course Road, Gurugram. The projects are estimated to have a revenue potential of Rs 3,100 crore.

  • India’s CPI inflation rises to 4.8% in June after touching a 25-month low of 4.3% in May, due to a surge in food prices. Food inflation rises to 4.5% in June compared to 3% in May.

  • UltraTech Cement rises as it commissions a brownfield cement capacity of 1.3 mtpa at Sonar Bangla, West Bengal, taking the unit’s capacity to 3.3 mtpa. The company’s total grey cement manufacturing capacity in India now stands at 131.25 mtpa. It appears in a screener for stocks with strong momentum.

  • Adani Green Energy rises as its sale of energy increases by 69.6% YoY to 602.3 crore units in Q1FY24. The operational capacity of the company also surges by 43% YoY to 8,316 MW. It appears in a screener of stocks with improving RoA.

  • SpiceJet is rising as its promoter, Ajay Singh, proposes to invest around Rs 500 crore in the airline to strengthen its financial position. This infusion will give the airline additional credit facilities of Rs 206 crore under the emergency credit line guarantee scheme.

  • Apis Growth sells a 0.91% stake in Star Health and Allied Insurance for approx Rs 323.4 crore in a bulk deal on Wednesday.

  • Aurobindo Pharma's subsidiary APL Healthcare receives final approval from US FDA to manufacture and sell Sevelamer Hydrochloride tablets. The drug is used to treat chronic kidney diseases. The company appears in a screener of stocks with strong momentum.

  • Ashish Kacholia buys a 0.1% stake in Agarwal Industrial Corp in Q1FY24. He now holds a 3.9% stake in the company.

  • Morgan Stanley maintains its 'Overweight' rating on IndusInd Bank with a target price of Rs 1,725. The brokerage expects the bank's margins to outperform as the rate cycle is peaking. It also anticipates strong Q1 earnings on the back of moderation in credit cost and healthy top-line growth.
  • Porinju Veliyath buys a 1.4% stake in Aurum Proptech in Q1FY24. He now holds a 3.4% stake in the company.

  • HCL Technologies falls as its net profit declines by 11.3% QoQ to Rs 3,534 crore in Q1FY24. Its revenue also dips by 1.2% QoQ to Rs 26,296 crore on the back of muted growth in HCL software and IT & business services segments. Moreover, its EBITDA margins contract by 190 bps due to an increase in employee benefit expenses. The company appears in a screener of stocks with declining quarterly revenue.

  • Tata Consultancy Services is rising despite its net profit falling by 2.8% QoQ to Rs 11,074 crore in Q1FY24. EBITDA margin contracts by 110 bps QoQ owing to an increase in employee benefit expenses. The company appears in a screener of stocks with declining quarterly net profit and profit margin (QoQ).

Riding High:

Largecap and midcap gainers today include Zomato Ltd. (82.20, 6.06%), Supreme Industries Ltd. (3,375.90, 4.28%) and PB Fintech Ltd. (762.85, 3.87%).

Downers:

Largecap and midcap losers today include Federal Bank Ltd. (126.75, -5.59%), Patanjali Foods Ltd. (1,165.10, -5.00%) and JSW Energy Ltd. (298.90, -4.49%).

Volume Rockets

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

Top high volume gainers on BSE included Tejas Networks Ltd. (820.15, 11.24%), Phoenix Mills Ltd. (1,677.90, 6.56%) and Zomato Ltd. (82.20, 6.06%).

Top high volume losers on BSE were Federal Bank Ltd. (126.75, -5.59%), Patanjali Foods Ltd. (1,165.10, -5.00%) and Prestige Estates Projects Ltd. (567.55, -3.01%).

Tanla Platforms Ltd. (1,074.10, 4.59%) was trading at 19.3 times of weekly average. Symphony Ltd. (878.00, -0.40%) and KIOCL Ltd. (194.95, 4.47%) were trading with volumes 13.8 and 13.1 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

54 stocks hit their 52-week highs, while 2 stocks were underachievers and hit their 52-week lows.

Stocks touching their year highs included - 3M India Ltd. (28,842.95, 1.36%), Akzo Nobel India Ltd. (2,737.75, 0.56%) and Bajaj Auto Ltd. (4,866.45, -0.25%).

Stocks making new 52 weeks lows included - UPL Ltd. (631.00, -2.00%) and Aarti Industries Ltd. (448.30, -1.58%).

8 stocks climbed above their 200 day SMA including KIOCL Ltd. (194.95, 4.47%) and Tata Consultancy Services Ltd. (3,340.55, 2.47%). 12 stocks slipped below their 200 SMA including Federal Bank Ltd. (126.75, -5.59%) and Delta Corp Ltd. (179.55, -5.25%).

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The Baseline
12 Jul 2023
Jagdishan has big dreams for HDFC Bank | Stocks outperforming their sectors on returns, RoCE and RoE
By Deeksha Janiani

Today (July 12) was HDFC's last day on the stock market, after its merger into HDFC Bank. “Our history cannot be erased,” Deepak Parekh insisted when he retired from HDFClast month.

HDFC was Parekh's life's work. The chairman emeritus set aside his American dreams and returned to India from New York in 1978, to join the country's first home financier. Over the next 45 years, HDFC funded homes for nine million families and built a loan book of over Rs 6 lakh crore. 

HDFC was originally the promoter at HDFC Bank, and held 19% stake in its subsidiary. Parekh described this reverse merger in typical Indian fashion: “As the son grows older, he acquires the father's business.”

But this “son” has a difficult challenge ahead. HDFC Bank has underperformed the Nifty 50 and the banking sector over the past three years. It has lagged behind its peer, ICICI Bank, in growth. Regulatory hiccups have also hurt the bank. 

HDFC Bank’s current CEO Sashi Jagdishan heads the merged entity, and his task is a difficult one. HDFC, as Deepak Parekh said, has its own DNA. The already big bank has gotten even bigger with the merger, and there will be ego clashes in management, inherited problems, slow-growing verticals.

Given all this, can Jagdishan usher in a new growth era?

In this week’s Analyticks:

  • The game plan for HDFC Bank: Big bets on retail, focus on customer relationships 
  • Screener:Stocks outperforming their sectors on quarterly price returns, annual RoCE and RoE

Let’s get into it.


Sashi's plan to "create a new HDFC Bank every four years"

The marriage of HDFC and HDFC Bank becomes official on the stock exchanges from July 13. With this, the bank will be the second most valuable Indian company and assume the highest weightage in the benchmark Nifty 50 - the new 'Baahubali'

On a global level, it will become the fourth biggest bank, surpassing global behemoths HSBC, Wells Fargo and Morgan Stanley. 

Within the banking sector, HDFC Bank is still the second largest in terms of its advances. But post-merger, its loan book is more than double the size of ICICI Bank’s as of March 2023.

Laying out his vision for the bank, Jagdishan said, “The pace at which we plan to grow, we can create a new HDFC Bank every four years.” He aims to expand the bank’s asset base at a CAGR of 18%. The addition of HDFC's mortgage book is a big boost here.

Home loans open up cross-selling opportunities

Mortgages now occupy over 25% of HDFC Bank’s advances, with an average tenure of 20 years. The long relationship the bank has with its home loan customers gives it an opportunity to cross-sell other loan products like personal loans, auto loans and credit cards. 

The bank can also strengthen its relationship with home loan customers on the liability side. Right now around 70% of HDFC’s customers (3.5 million) do not have either a savings account or a term deposit with the bank. This is another path for the bank to expand its customer base.

But there is one problem to having a large share of mortgages in the bank’s advances – compression of margins. According to the management, HDFC Bank’s net interest margins are expected to dip to 3.7-3.8% levels, given the lower yields on home loans. 

Going ahead, Jagdishan sees significant growth opportunities in the home loans segment as it is still underserved and underpenetrated.

HDFC Bank wants to get serious: focus moves from sales to 'relationships' 

With HDFC, HDFC Bank has got subsidiaries like HDFC Life, HDFC AMC and HDFC Ergo under its umbrella. The financial products now available to it will reshape the bank's approach to sales. 

Jagdishan says that the new product suite means “moving from sales management to relationship management.” The focus will be on maximizing sales at the individual level.

To do this, the bank plans to “enhance customer experience” by providing truly digital products. For instance, a relationship manager can execute a sale by extending an ‘Xpress car loan’ or a ‘10-second personal loan’ to an existing home loan customer. With a small nudge and the click of a button, the deal is done. 

But of course, there is plenty of slip between the cup and the lip - it's not going to be easy to execute these plans, given the intense competition in the banking industry. HDFC Bank has historically been a massive, slow-moving business surrounded by younger, more agile competitors.

The bank is talking 'digital' under Jagdishan - during HDFC Bank's Investor Day last month, Jagdishan mentioned 'digital' over twenty times - but this area has been a struggle for HDFC Bank as its competitors modernize. The frequent crashes of its online and digital systems are what got HDFC Bank into trouble with the RBI in the first place.

Some of the 'visionary' ideas being discussed are also already in the market - ICICI Bank, for instance, offers an ‘Insta Personal Loan’ with disbursals taking place in just 3 seconds. While the RBI scrutiny on HDFC Bank was active from December 2020 to March 2022, ICICI Bank made big strides in digitization at the expense of HDFC Bank. 

So, digital capabilities alone won’t do the trick.  

Prospects look good for commercial business, but not as much for corporate

HDFC Bank has big expectations from its retail business. But it’s the rural and commercial segments that fired up growth between FY21-FY23. The MSME loans division has been an especially bright star - the bank has grown its market share here by over six percentage points. It also enjoys the lowest NPAs in this industry.

The bank has a lot of scope to expand its market share in MSME financing in at least 200 districts. However, it’s a little cautious in this segment in the short term due to the upcoming general elections, which often result in higher receivables for smaller businesses. 

As for the corporate book, HDFC Bank says it will adopt a selective approach in choosing assets. The focus will be on supply chain finance, loans under the PLI schemes, and new customers. The bank forfeited financing opportunities worth Rs 1 lakh crore in FY23 due to lower margins. It looks like corporate business is not as much of a priority for the bank now. 

HDFC Bank eyes cheaper funds, upper middle class customers

As HDFC Bank hopes to grow bigger faster, getting low-cost funds is critical. But it faces intense competition here among banks for current and savings account customers. 

HDFC Bank’s management is confident in its ability to grow its deposits by tapping into HDFC’s existing customer base and expanding its branch network. The bank is especially focused on capturing the rising middle and upper-middle-class customer segments through new branch additions. Of course, this is the same coveted demographic other Indian banks are aiming for.

While HDFC Bank has multiplied investors’ wealth by nearly 20% CAGR since 2000, achieving market expectations in the past five years has been challenging. This leaves little room for  error for current CEO Sashi Jagdishan.

Jagdishan's blueprint for the bank is promising, but ambition is only the starting point. Execution makes for all the difference between the winner and the runners-up, and investors will be waiting to see if Jagdishan and his team can bring the money in, over the coming quarters. 


Screener: Stocks outperforming their sectors in terms of quarter price change, annual RoCE and RoE 

This screener shows stocks that have outperformed their respective sectors in terms of quarterly price change, annual return on capital employed (RoCE) and annual return on equity (RoE), as per FY23 numbers that have come in. These stocks also enjoy high Trendlyne momentum and durability scores. The screener has 38 stocks from the Nifty 500 and seven stocks from the Nifty 50

The screener is dominated by the auto, banking, consumer durables and FMCG sectors. Major stocks in the screener are Colgate Palmolive (India), Nestle India, The Fertilizers & Chemicals Travancore, Angel One and Sanofi India.

Colgate Palmolive has the highest annual RoCE of 79.3% in FY23 and an annual RoE of 61%. Its RoE is high due to robust net profit margin and healthy asset turnover. FMCG companies are not capital-intensive in general and their brands are well established. The stock has risen 17% over the past quarter, outperforming FMCG overall by 6.2 percentage points. 

Nestle India has an annual RoCE of 57.8% in FY23, outperforming the FMCG sector by 25.6 percentage points. Given the presence of established brands like Maggi, Kitkat, Munch and Nescafe in its portfolio, it has a high operating profit margin of 22% and a good asset churn of 2X. These factors contributed to a high RoE of 97.2% in FY23. The company’s stock price grew 17% over the past quarter, outperforming FMCG overall by 6.3 percentage points.

The Fertilizers and Chemicals Travancore stands out in the fertilizers sector with an RoCE of 57% in FY23 and an RoE of 48.1%. The company ranks among the highest in the fertilizers sector in terms of RoCE and outperforms the sector by 23 percentage points. The stock rose 17% over the past quarter, outperforming its sector in price by 32.6 percentage points.

You can find some popular screenershere.

Trendlyne Marketwatch
Trendlyne Marketwatch
12 Jul 2023
Market closes lower, Utkarsh Small Finance Bank's IPO gets bids for 4.7X of shares

Trendlyne Analysis

Nifty 50 closed at 19,384.30 (-55.1, -0.3%), BSE Sensex closed at 65,393.90 (-223.9, -0.3%) while the broader Nifty 500 closed at 16,641.05 (-7.0, 0.0%). Of the 1,961 stocks traded today, 999 were on the uptick, and 891 were down.

Indian indices fell from their day highs and closed in the red, with the Nifty 50 falling below the 19,400 mark. Indian volatility index, Nifty VIX, closed below 11%. Lupin rose over 2.9% and hit a new 52-week high after receiving an establishment inspection report from the US FDA for its Pithampur unit-2 facility,

Nifty Smallcap 100 and Nifty Midcap 100 closed in the green, despite the benchmark index closing in the red. Nifty Media and Nifty PSU Bank closed higher than Tuesday’s levels. According to Trendlyne's sector dashboardHardware Technology & Equipment was the top-performing sector of the day.

Major European indices traded in the green, despite the Asian indices closing mixed. European stocks traded higher, in line with the US index futures as investors awaited US CPI inflation data, which is set to be released later today. Brent crude oil futures extended gains from Tuesday and traded in the green after closing nearly 2% higher in the previous trading session.

  • HDFC Asset Management sees a long buildup in its July 27 future series as its open interest rises 14.8% with a put-call ratio of 0.83.

  • Ahluwalia Contracts is rising as it bags an order worth Rs 199.6 crore from Indian Financial Technology and Allied Services. The project involves work for Enterprise Computing and Cybersecurity Training Institute at Bhubaneshwar, Odisha. The company’s order inflow in FY24 stands at Rs 4,377.4 crore.

  • J B Chemicals & Pharmaceuticals rises over 5% to touch a new 52-week high of Rs 2,773.9 and ranks high on Trendlyne's checklist with a score of 69.6%. The stock has 'Buy' ratings from 11 out of 13 brokerage firms. It appears in a screener of stocks with no promoter pledge.

  • SpiceJet is falling as reports suggest that the Directorate General of Civil Aviation (DGCA) has put the airline under enhanced surveillance. The move is aimed at ensuring compliance with safety obligations in light of the company's ongoing financial challenges. However, a SpiceJet spokesperson says that no such communication has been received from the DGCA.

  • Utkarsh Small Finance Bank's Rs 500 crore IPO gets bids for 4.7X the available 12.1 crore shares on offer on the first day of bidding. The retail investor quota gets bids for 13.75X of the available 2.2 crore shares on offer.

  • Kamlesh Shah, Group CFO of Elecon Group, anticipates a correction in the company’s margins due to a change in products. He has given a revenue guidance of Rs 2,000 crore on a consolidated basis for FY24. The company reports a 72.5% YoY increase in its net profit and a 26.4% rise in revenue in Q1FY24.
  • Steel Strips Wheels is falling as its net profit remains flat at Rs 47.4 crore in Q1FY24. Its revenue grows by 3.9% QoQ but EBIDTA margin drops by 20 bps QoQ owing to higher employee benefits, finance and other expenses. The company appears in a screener of stocks with declining quarterly revenue and net profit.

  • Tatva Chintan Pharma Chem's board approves the raising of Rs 200 crore via equity-linked instruments with a face value of Rs 10 per share. It appears on a screener for volume shockers.

  • Bharti Airtel signs an agreement to acquire an aggregate of 45.6% equity stake in Lavelle Networks. Currently, the company holds a 25% stake in Lavelle Networks. The acquisition of an additional 20.6% stake will occur in multiple tranches.

  • ICICI Securities downgrades its rating on Gujarat Gas to ‘Hold’ from ‘Buy’ and lowers the target price to Rs 494 from Rs 585, implying an upside of 4.5%. The brokerage believes the company will face strong margin pressures in FY24 due to declining LPG and propane prices. It adds that the firm might find it difficult to focus on volume growth and margin expansion at the same time.                                                                                                                                  

  • The Society of Indian Automobile Manufacturers (SIAM) reports a 1.7% YoY increase in two-wheeler sales to 13.3 lakh units in June, while passenger vehicle sales reach 3.3 lakh units.

  • Marksans Pharma rises to a new 52-week high of Rs 103 today as it receives final approval from the US FDA for its abbreviated new drug application. The approval is for its over-the-counter pain-relieving drugs, Acetaminophen and Ibuprofen tablets.

  • Prestige Estates Projects rise as it reportedly acquires land in south Mumbai from DB Realty for Rs 704 crore. It appears in a screener of stocks with strong momentum.

  • Jahangir Aziz, Head of Emerging Market Economics at JP Morgan, anticipates at least one more rate hike by the US Fed. He says India's core inflation is easing, however, food inflation is still an issue. He also expects India's growth to slow down in the second half of FY23.

  • PSU bank stocks like Punjab & Sind Bank, Indian Bank, UCO Bank and Central Bank of India are rising in trade. All constituents of the broader Nifty PSU Bank index are also trading in the green.

  • Sterlite Technologies is rising as it forms a partnership with Windstream, a US-based communications and technology company, to assist in its fiber expansion projects. Kinetic, a subsidiary of Windstream, plans to invest $2 billion to expand gigabit internet services across its presence in 18 states.

  • PVR INOX is rising as the GST Council lowers the tax on food and beverages at cinema halls to 5% from 18%. The stock shows up in a screener for companies with decreasing promoter pledges.

  • Piramal Pharma is rising as Nuvama Wealth initiates coverage with a ‘Buy’ rating and a target price of Rs 130. The brokerage expects a strong recovery in the company’s business in the coming years, driven by factors like normalisation of macro headwinds and capital expansion.
  • Utkarsh Small Finance Bank raises Rs 222.8 crore from anchor investors ahead of its IPO by allotting 8.9 crore shares at Rs 25 per share. Investors include SBI Mutual Fund, ICICI Prudential AMC, Goldman Sachs Funds, SBI Life Insurance Co, Edelweiss Trusteeship and Founders Collective Fund.

  • Dolly Khanna sells a 0.6% stake in KCP in Q1FY23. She now holds a 1.7% stake in the company.

  • Citi downgrades its rating on Pidilite from 'Buy' to 'Sell' and lowers the target price by 21.4% to Rs 2,200. The brokerage believes that the firm's FY24 estimates already account for margin expansion.
  • Elgi Equipments rises to a new 52-week high of Rs 619 as it secures a 10-year supply order from Siemens. The order involves the supply and maintenance of air generation and treatment units, as well as compressors. The company appears in a screener of stocks with strong momentum.

  • Ashish Kacholia reduces his stake in D-Link (India) to below 1% in Q1FY24, compared to 2.1% in Q4FY23.

  • Online gaming stocks like Nazara Technologies and Delta Corp are falling as the GST Council imposes a 28% tax on online gaming, casinos and horse racing. The tax is likely to be levied on the total value of bets placed on a platform. Nazara Technologies declines despite clarifying that the GST levy applies only to the skill-based real money gaming segment, which contributed 5.2% to its revenue in FY23.

  • Lupin rises to a new 52-week high of Rs 930 as it receives an establishment inspection report from the US FDA. The report is for its Pithampur unit-2 facility, which manufactures oral solids and ophthalmic dosage. The inspections were conducted from March 21 to 29.

  • Wipro announces the launch of Wipro ai360, an AI-first innovation ecosystem, aimed at integrating Artificial Intelligence (AI) across its platforms. Along with this, the firm will invest $1 billion in advancing AI capabilities over the next three years. Wipro also plans to provide AI training to all 2.5 lakh employees.

Riding High:

Largecap and midcap gainers today include One97 Communications Ltd. (854.75, 5.95%), PB Fintech Ltd. (734.40, 5.46%) and Indian Bank (324.30, 4.58%).

Downers:

Largecap and midcap losers today include Gujarat Fluorochemicals Ltd. (2,695.55, -2.42%), LTIMindtree Ltd. (4816.20, -2.19%) and Gujarat Gas Ltd. (470.40, -2.12%).

Crowd Puller Stocks

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

Top high volume gainers on BSE included Mazagon Dock Shipbuilders Ltd. (1,731.85, 8.79%), Elgi Equipments Ltd. (583.20, 6.91%) and J B Chemicals & Pharmaceuticals Ltd. (2,603.50, 6.28%).

Top high volume losers on BSE were Delta Corp Ltd. (189.50, -23.19%), Swan Energy Ltd. (230.00, -7.28%) and Poly Medicure Ltd. (1,104.05, -3.56%).

Aarti Drugs Ltd. (492.65, 5.32%) was trading at 16.8 times of weekly average. Just Dial Ltd. (777.55, 2.65%) and Housing Development Finance Corporation Ltd. (2,724.30, -0.84%) were trading with volumes 13.7 and 8.1 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

51 stocks took off, crossing 52-week highs,

Stocks touching their year highs included - 3M India Ltd. (28,300.00, 1.17%), Akzo Nobel India Ltd. (2,724.90, 0.94%) and Apollo Tyres Ltd. (432.60, -0.17%).

9 stocks climbed above their 200 day SMA including Sun TV Network Ltd. (488.90, 2.66%) and Shree Cements Ltd. (2,4261.40, 1.28%). 5 stocks slipped below their 200 SMA including Delta Corp Ltd. (189.50, -23.19%) and Swan Energy Ltd. (230.00, -7.28%).