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

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

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

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

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

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

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

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

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

Ashish Kacholia adds three new stocks to his portfolio

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

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

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

Sunil Singhania’s Abakkus Fund makes minor portfolio adjustments

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

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

Dolly Khanna increases holdings in nine companies

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

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

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

Porinju Veliyath diversifies portfolio with two new companies 

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

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

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

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

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

Mohnish Pabrai increases stake in Edelweiss for third consecutive quarter 

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Trendlyne's analysts identify stocks that are seeing interesting price movements, analyst calls, or new developments. These are not buy recommendations.

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

Trendlyne Analysis

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Riding High:

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

Downers:

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

Volume Rockets

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

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

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

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

BSE 500: highs, lows and moving averages

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Check out the full screener here.

 
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Trendlyne Marketwatch
03 Aug 2023
Market closes lower, Sun Pharmaceutical Industries' Q1FY24 net profit falls by 1.9% to Rs 2,022.5 crore

Trendlyne Analysis

Nifty 50 closed at 19,381.65 (-144.9, -0.7%), BSE Sensex closed at 65,240.68 (-542.1, -0.8%) while the broader Nifty 500 closed at 16,772.30 (-86.7, -0.5%). Market breadth is in the green. Of the 1936 stocks traded today, 1017 were in the positive territory and 850 were negative.

Indian indices closed in the red, with the Nifty 50 closing below the 19,400 mark. The Indian volatility index, India VIX, settled above 11 points. Varun Beverages closed 2% higher after its Q1FY24 net profit rose 26.2% YoY to Rs 993.8 crore on the back of lower raw material costs, higher realisations and operational efficiencies.

Nifty Smallcap 100 and Nifty Midcap 100 closed higher, despite the benchmark index closing in the red. Nifty Media and Nifty Pharma closed higher than Thursday’s close. According to Trendlyne's sector dashboard, Pharmaceuticals & Biotechnology was the top-performing sector of the day in a weak market.

Major European indices traded in the red, in line with the Asian indices, which closed lower. US index futures traded in the red, indicating a negative start to the trading session. Brent crude oil futures also traded lower after falling 2.7% on Thursday.

  • Relative strength index (RSI) indicates that stocks like Escorts Kubota, Eris Lifesciences, BEML and Cipla are in the overbought zone.

  • Sun Pharmaceutical Industries' Q1FY24 net profit falls by 1.9% to Rs 2,022.5 crore, while revenue rises by 10.7%. The decline in profit is due to the rise in input costs and employee benefit expenses. The company features in a screener for stocks with low debt.

  • Jefferies maintains its ‘Underperform’ rating on Hindustan Petroleum but raises the target price to Rs 225. The brokerage says the company reported strong results in Q1FY24 but highlights that earnings have peaked. It also believes that the increase in oil prices will impact marketing.

  • Mahindra and Mahindra (M&M) enters into a securities subscription agreement of Rs 1,200 crore with Temasek Holdings. As part of this agreement, Temasek will acquire a 1.5% to 3% stake in M&M's EV business, Mahindra Electric Automobile (MEAL), at a valuation of Rs 80,580 crore.

  • Akzo Nobel India rises to an all-time high of Rs 2,930.9 as its Q1FY24 net profit increases by 42.9% YoY to Rs 109.9 crore. Its revenue grows by 7% YoY on the back of the coatings segment. The company appears in a screener of stocks with improving RoA.

  • SBFC Finance's Rs 1,025 crore IPO gets bids for 1.91X the available 13.4 crore shares on offer on the first day of bidding. The retail investor quota gets bids for 2.06X of the available 6.6 crore shares on offer.

  • Dixon Technologies (India) rises by over 8% today as the government bans the import of laptops, personal computers, tablets, etc. for foreign companies without proper licenses. This firm operates in the electronic manufacturing services (EMS) space in India and will directly benefit from this ban. It appears in a screenerof stocks with strong momentum.

  • Dabur India recovers after an initial 3% fall today as its Q1FY24 net profit rises 5.4% YoY to Rs 463.9 crore, and revenue grows by 10.9% YoY, led by its consumer care and food segments. The company had declined earlier today as reports surfaced claiming the presence of carcinogenic materials (cancer-causing substances) in its honey product, Dabur Honey.

  • Tech giant Apple plans to shift at least 20% of iPhone production to India from China, amid Washington- Beijing tensions and Covid-induced uncertainty.

  • Hindustan Petroleum Corp falls despite its Q1FY24 net profit rising to Rs 6,765.5 crore, compared to a net loss of Rs 8,557.1 crore in Q1FY23. The growth is due to lower raw material expenses and inventory. Its revenue grows by 4.3% YoY, beating Trendlyne's Forecaster estimates by 9.1%. The company appears in a screener of stocks with increasing quarterly profits.

  • Motilal Oswal downgrades its rating on Oberoi Realty to ‘Neutral’ from ‘Buy’ but raises the target price to Rs 1,200 from Rs 1,140. This implies an upside of 10.4%. The brokerage cites the stock's current valuation for the downgrade. However, it remains optimistic about the firm’s prospects, given its healthy launch pipeline in FY24.

  • Varun Beverages is rising as its Q1FY24 net profit rises 26.2% YoY to Rs 993.8 crore on the back of lower raw material costs, higher realisations and operational efficiencies. Its revenue increases by 13.6% YoY despite a soft demand environment caused by high unseasonal rainfall in Q1. The company shows up in a screener for stocks with consistently high returns over the past five years.

  • Sterlite Technologies rises as it bags an order worth Rs 250 crore from a public sector entity. The project involves designing, building, commissioning, and maintaining 2 data center facilities across India. The company appears in a screener of stocks with increasing quarterly net profit and margins.

  • FSN E-Commerce Ventures (Nykaa) is declining as it responds to a Reuters report about the departure of five key executive employees from the firm. The company says that they have hired new top-level executives as part of a strategic realignment and cost rationalization, and to address the growing complexity of the business. It appears in a screener of stocks with a major fall in TTM net profit.

  • Vedanta falls sharply as reports suggest that 16.5 crore shares (4.5% equity) of the company, amounting to Rs 4,270 crore, change hands in a block deal. Promoter Twin Star Holding is the likely seller in this transaction.

  • Zydus Lifesciences is rising as it receives final approval from the US FDA to manufacture and market indomethacin suppositories. The drug is a generic version of the reference listed drug (RLD) indocin suppositories, used to treat arthritis patients. According to IQVIA, the drug has an estimated annual sales of $95 million in the USA for the year ended April 2023.

  • Hero MotoCorp is falling after the Enforcement Directorate (ED) reportedly seized cash and jewellery worth Rs 25 crore during raids on the executive chairperson Pawan Kant Munjal and other top officials of the company. The ED also claims to have discovered "incriminating" documents in the residences and offices of Pawan Kant Munjal and others.

  • ICICI Prudential Life Insurance and Societe Generale buy a 0.8% and 0.5% stake in Campus Activewear respectively in bulk deals on Wednesday.

  • Lupin, Aurobindo Pharma, Zydus Lifesciences, Laurus Labs and Ipca Laboratories are rising in trade. Barring Pfizer, all other constituents of the broader sectoral index, Nifty Pharma, are also trading in the green.

  • India’s Services PMI jumps to a 13-year high of 62.3 in July from 58.5 in June amid strong demand and an increase in new orders.

  • Mankind Pharma rises as its Q1FY24 net profit increases by 66.4% YoY to Rs 486.9 crore due to lower inventory and finance expenses. Its revenue also grows by 20.1% YoY on the back of expansion in the domestic consumer healthcare and exports segments. The company appears in a screener of stocks nearing their 52-week high with significant volumes.

  • Gujarat Gas is falling as its net profit plunges by 43.4% YoY to Rs 215.9 crore in Q1FY24 owing to an increase in employee benefit and excise duty expenses. Its revenue also declines by 26% YoY due to reduced natural gas prices. The company features in a screener of stocks with declining profits for the past three consecutive quarters.

  • Morgan Stanley raises its rating on India to ‘Overweight’, citing favourable valuations and sound growth outlook. The brokerage believes the country is poised for significant and sustained economic growth.

  • Ambuja Cements acquires a 56.7% stake in Sanghi Industries at an enterprise value of Rs 5,000 crore. The acquisition will be fully funded through internal accruals.

  • InterGlobe Aviation falls despite its Q1FY24 net profit rising to Rs 3,090.6 crore, compared to a net loss of Rs 1064.3 crore in Q1FY23. The growth is due to lower aircraft fuel expenses. Its revenue also grows by 31.8% YoY, beating Trendlyne's Forecaster estimates by 4.4%. The company appears in a screener of stocks with increasing quarterly profits and margins.

  • Titan is falling as its net profit declines by 4% YoY to Rs 756 crore in Q1FY24 due to an increase in expenses for raw materials, employee benefits and advertising. However, its revenue grows by 21% YoY, aided by improved sales from the jewellery, watches & wearables and eyecare segments. It appears in a screener of stocks where mutual funds have decreased their shareholding in the past quarter.

Riding High:

Largecap and midcap gainers today include Indian Railway Finance Corporation Ltd. (44.70, 12.59%), Dixon Technologies (India) Ltd. (4,443.35, 7.66%) and IDBI Bank Ltd. (64.40, 6.45%).

Downers:

Largecap and midcap losers today include Vedanta Ltd. (254.05, -6.65%), Godrej Properties Ltd. (1,573.00, -5.23%) and Kansai Nerolac Paints Ltd. (320.50, -4.90%).

Movers and Shakers

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

Top high volume gainers on BSE included KSB Ltd. (2,717.65, 18.06%), FDC Ltd. (372.95, 8.73%) and Dixon Technologies (India) Ltd. (4,443.35, 7.66%).

Top high volume losers on BSE were Vedanta Ltd. (254.05, -6.65%), Kansai Nerolac Paints Ltd. (320.50, -4.90%) and InterGlobe Aviation Ltd. (2,447.75, -4.58%).

VIP Industries Ltd. (597.95, 1.27%) was trading at 15.4 times of weekly average. MRF Ltd. (1,06,973.35, 4.27%) and Gujarat Gas Ltd. (455.05, -3.60%) were trading with volumes 7.4 and 6.5 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

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

Stocks touching their year highs included - Abbott India Ltd. (24,555.80, 1.96%), Ajanta Pharma Ltd. (1,721.55, 2.23%) and Akzo Nobel India Ltd. (2,900.50, 4.30%).

Stocks making new 52 weeks lows included - UPL Ltd. (600.45, -3.02%) and VIP Industries Ltd. (597.95, 1.27%).

7 stocks climbed above their 200 day SMA including Laurus Labs Ltd. (384.35, 5.42%) and Indian Railway Catering & Tourism Corporation Ltd. (660.20, 3.52%). 16 stocks slipped below their 200 SMA including Mas Financial Services Ltd. (758.75, -4.05%) and Sheela Foam Ltd. (1142.00, -2.86%).

 
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The Baseline
02 Aug 2023
Five outperformers that beat expectations in Q1 | Stocks where promoters increased pledged shares
By Deeksha Janiani

It's that time of the year, when promises that CEOs made in the previous quarter are checked against actual financial results.

And so far, it’s been a mixed bag for Q1FY24.  

Sectors like banking and finance, auto ancillaries, capital goods and construction have continued to outperform, with impressive growth and a promising outlook. Uday Kotak, Managing Director at Kotak Mahindra Bank, said that the financial sector "is in its Goldilocks period. Clock striking midnight feels far away for Cinderella.” 

In contrast, the IT sector and a few FMCG players have seen a growth slowdown so far. And textiles and chemicals players were hit by a YoY decline in their Q1 revenue and profits.

When we look beyond sectoral trends, an intriguing volume story has also emerged this quarter.

With inflation falling and demand bouncing back, several big companies reported a strong jump in their Q1 sales volumes. This is especially true for building material companies like UltraTech Cement, Supreme Industries and APL Apollo. 

Similar signs of a volume rebound are visible in the pharma and FMCG spaces. But there are also bigwigs like HUL, who were left out and are still waiting for the volume recovery to come their way.

One group of companies in particular, managed to impress the street with their growth. This week, we bring you an exclusive report on these five players, which surpassed analyst expectations and sector performance to deliver outstanding Q1 results. 

In this week’s Analyticks:

  • Q1FY24 outperformers: Companies that surprised investors with a strong Q1 showing
  • Screener: Stocks where promoters increased pledged shares QoQ

Let’s get into it.

Results special: Five companies that beat estimates in Q1

In this week’s edition, we look at five players that easily beat revenue and profit growth expectations in Q1FY24. Many of these companies are also reasonably valued relative to their future prospects.  

L&T beats expectations with strong infra and energy execution 

This engineering & construction major beat analysts' net profit expectations by 19% in Q1. Revenue for its core engineering business jumped nearly 50%, thanks to a pick up in project execution in infrastructure and energy.

Order wins were equally encouraging for L&T in Q1. The company received bookings across segments like railways, renewables, rural water supply, transmission & distribution, and commercial & residential buildings. 

For the rest of FY24, L&T sees order prospects worth Rs 10.07 lakh crore, an increase of over 30% from the previous year. Prospects - meaning projects that L&T can bid for - have risen due to higher activity in the Middle East, especially Saudi Arabia, where the government is flush with budget surpluses. 

R Shankar Raman, CFO at L&T, commented onthe Middle East growth,“Recently, there has been a shift in investment preference in the Middle East. They want to develop rail networks, invest in solar energy and green hydrogen. Fortunately, that plays to our strengths.” 

Tata Motors:  Jaguar Land Rover presses the accelerator

This auto major beat analyst expectations on net profit by 16% in Q1FY24. This was driven by a 40% surge in revenue and a seven percentage point rise in EBITDA margin. The highlight of the quarter was the JLR business. 

Tata Motors’ JLR division sells high-margin luxury SUVs. It saw a strong jump in the wholesales of Range Rover, Range Rover Sport and Defender during the quarter. Sales were particularly strong in regions like North America, the Middle East and China. 

The company expects the demand for the JLR division to rise in H2FY24, as it ramps up production. It also sees a recovery in demand for its commercial vehicles after the monsoons. The management acknowledged the especially strong growth in heavy commercial vehicles, which is expected to continue.

Tata Motors faced high net losses between FY19 and FY22, but it was back in the black in FY23. Analysts predict that the company’s profits will jump over 8X in the next two years, helped by a low base. Consequently, it has attractive valuations. 

JSW Steel 'steals' the show with robust sales volume and lower costs

This metals company exceeded analyst profit estimates by a whopping 162% in Q1. Lower input and power costs drove a margin rise of over five percentage points. 

A jump in steel sales volume boosted JSW Steel’s revenue growth. The infrastructure and construction space drove demand, as did its retail customer segment. 

Going forward, the company has guided for steel sales of 25 million tonnes in FY24, which translates to 12% YoY growth. JSW Steel also plans to expand its production capacity by over 30% in the next two years. Analysts expect the company to benefit from rising government capex, and predict a rebound in net profits by FY25. 

Cipla's American business helps it shine 

This pharma major surpassed analyst net profit estimates by 11% in Q1. The top-line growth was driven by a strong performance of the US business, and a decent show in the India business.

Cipla saw robust volume growth for its basic generics business in the US. Commenting on this, Umang Vohra, CEO at Cipla, said, “The supply-demand equation in the US market is readjusting and competition is falling, due to companies going up for sale or facing bankruptcy. This is resulting in growth for Cipla's base families. Pricing pressures are also easing.”

Cipla’s branded prescription business in India also did well in Q1, beating the growth of the broader pharmaceutical market. The company’s growth has been especially strong in the respiratory and cardiac segments.

Going ahead, Cipla has a good launch pipeline for the US market. The company is reasonably valued and analysts foresee a profit growth of over 20% in the next two years.

Favourable demand for wires and cables is boosting Polycab India

This consumer durables player beat consensus net profit (net income) estimates by 46% in Q1FY24. The revenue growth in its flagship wires and cables division drove the bottom line, with a 50-60% YoY volume jump. 

Infrastructure, electricity transmission & distribution, and the real estate segments drove domestic demand for wires and cables. Exports also saw strong momentum, thanks to healthy demand from the oil and gas, and renewables sectors. 

Commenting on the growth trajectory, Gandharv Tongia, CFO at Polycab, said, “We should be able to get to a top line of Rs 20,000 crore by FY26, but it is also possible that we achieve it sooner.” The management's confidence here suggests growth beyond the target CAGR of over 12%. 

Analysts expect that the company will achieve a revenue and net profit growth of over 18% in the next two years. But the stock is currently trading at expensive valuations relative to its prospects.  

Screener: Stocks where promoters have increased pledged shares QoQ in Q1

As the latest shareholding data for companies comes out, we take a look at the stocks that saw a significant rise in promoter-pledged shares (which indicates higher loans taken out against stock). This screener shows stocks with increasing promoter pledges over the past quarter. This is typically a negative signal for a company.

The screener has 18 stocks from Nifty 500 and one stock from Nifty 50, representing sectors like banking, pharmaceuticals & biotechnology and utilities. Major stocks that appear in the screener are Hindustan Zinc, Eris Lifesciences, Max Financial Services, Ajanta Pharma, PVR Inox and Aurobindo Pharma.

Hindustan Zinc stands out with the highest rise of 11.8 percentage points QoQ in promoter-pledged shares. Its promoter, Vedanta, increased its pledged shares to 99.4% of its total holding. It pledged 4.4% of its holding on May 25 to Glencore International against a loan of $250 million and 3.3% of its holding to Axis Trustee Services for an undisclosed amount. 

Max Financial’s promoters increased their pledge by 8.3 percentage points over the past quarter. This takes the promoter pledge to 93.3% of their total holding. The life insurance player struggled with declining net profits and profit margin in Q4FY23. 

Eris Lifesciences’ promoters pledged 11.4% of their holding in Q1FY24. This is the first time the promoters have pledged shares. Share price performance dwindled as it posted declining net profit and revenue for the second consecutive quarter in Q4FY23. 

You can find some popular screeners here.

 
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Trendlyne Marketwatch
02 Aug 2023
Market closes lower, Ipca Labs acquires 33.4% stake in Unichem Lab for Rs 1,034.1 crore

Trendlyne Analysis

Nifty 50 closed at 19,526.55 (-207, -1.1%), BSE Sensex closed at 65,782.78 (-676.5, -1.0%) while the broader Nifty 500 closed at 16,858.95 (-192.2, -1.1%). Of the 1,947 stocks traded today, 519 showed gains, and 1,388 showed losses.

Indian indices extend the losses from the morning session and close in the red, with the Nifty 50 closing at 19,527. The volatility index, Nifty VIX, rose by 9.7% and closed at 11.3 points. Godrej Properties’ Q1FY24 net profit jumps 174.3% YoY to Rs 125 crore against the consensus estimates of Rs 131 crore.

Nifty Smallcap 100 and Nifty Midcap 100 closed in the red following the benchmark. All major sectoral indices closed lower than Tuesday’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 2.4%. 

Most European indices trade in the red. US indices futures trade lower, indicating a negative start. Global rating agency Fitch lowers US credit rating to AA+ from AAA. The rating agency flagged concerns over the rising debt burden and the government’s inefficiency in resolving pressing fiscal issues. The rating agency predicted the US government’s fiscal deficit to reach 6.3% of GDP in 2023 against 3.7% in 2022.

  • Money flow index (MFI) indicates that stocks like BEML, Kansai Nerolac Paints, Ajanta Pharma and Eris Lifesciences are in the overbought zone.

  • SpiceJet reportedly seeks shareholder approval to issue 5.9% equity to Carlyle Aviation Partner. The lessor plans to convert its debt of $28 million to equity and values the airline's share at Rs 48 per share.

  • Godrej Properties’ Q1FY24 net profit jumps by 174.3% YoY to Rs 124.9 crore, and revenue surges by 282.6% YoY on the back of strong traction in deliveries, business development and cash collections. However, its sales bookings fall by 11% YoY due to a delay in launches. The stock shows up in a screener for companies with net profits rising sequentially over the past three quarters.

  • Strides Pharma Science plunges more than 6% as its revenue declines 1.1% YoY to Rs 9,299.9 crore in Q1FY24. However, its net loss contracts by 32.1% YoY owing to a decrease in raw material, employee benefits and finance costs. The company appears in a screener of stocks with high promoter pledge.

  • Campus Activewear falls as 91 lakh shares (3% equity) of the company, amounting to Rs 265.2 crore, change hands through block deals.

  • Ipca Laboratories acquires 33.4% controlling stake in Unichem Laboratories for Rs 1,034.1 crore. The deal received approval from the Competition Commission of India on July 27. Ipca plans to make a 26% open offer to public shareholders following SEBI regulations. The company appears in a screener of stocks with low debt.

  • Ambuja Cements falls as Sanghi Industries rises on reports of a possible majority stake acquisition by the Gautam Adani-led company. Ambuja Cements is expected to buy out the owners of Sanghi Industries, giving the small-cap cement company an enterprise value of Rs 5,000 crore.

  • Thyrocare Technologies is falling as its Q1FY24 net profit drops by 20.4% YoY to Rs17.3 crore. However, revenue rises by 5.5% YoY due to an improvement in diagnostic testing services. It appears in a screener of stocks with high momentum scores.

  • India’s GST collections rise 11% YoY to Rs 1.6 lakh crore in July, according to the data released by the finance ministry.

  • Adani Ports & Special Economic Zone records a 7% YoY rise in cargo volumes to 34 million metric tonnes in July 2023. Container volume increases by 23% YoY, while liquids and gas volume improves by 27%.

  • KRChoksey downgrades its rating on Sonata Software to ‘Add’ from ‘Buy’ but raises the target price to Rs 1,148 from Rs 1,122. This implies an upside of 9.3%. The brokerage cites the stock’s expensive valuations for the recommendation downgrade. However, it is positive about the firm’s medium-to-long-term prospects given its strong deal momentum, focus on enterprise clients and tailwinds in the managed cloud services.

  • Redington falls as its Q1FY24 net profit decreases by 21.2% YoY to Rs 248.8 crore due to higher inventory, employee benefits, and finance expenses. However, its revenue grows by 26.3% YoY, aided by robust growth in Singapore, India & South Asia, and the rest of the world regions. The company appears in a screener of stocks with declining quarterly profits.

  • Metal & mining stocks like Jindal Steel & Power, National Aluminium Co, Coal India, Tata Steel and NMDC are falling in trade. All the constituents of the broader sectoral index, BSE Metal, are also trading in the red.

  • Zee Entertainment Enterprises is falling as IDBI Bank moves the National Company Law Appellate Tribunal (NCLAT) to challenge the National Company Law Tribunal's decision to set aside its plea to initiate insolvency proceedings against the media company. The petition is listed to be heard by the NCLAT bench today.

  • Rating agency Fitch Ratings downgrades the US's long-term foreign-currency issuer default rating (IDR) to ‘AA+’ from ‘AAA’ with a "stable" outlook. The downgrade is due to factors including fiscal deterioration and increasing government debt.

  • Sula Vineyards falls as it receives an excise demand notice of Rs 115.9 crore issued by the Minister of State Excise Revenue, Government of Maharashtra. The company appears in a screenerof stocks with a negative breakdown at third support.

  • Kushal Pal Singh, promoter of DLF, sells his entire 0.6% stake for approx Rs 727.1 crore in the company on Tuesday. Promoter group Mallika Housing LLP also sells a 0.2% stake in the company.

  • Syrma SGS Technology is falling despite its Q1FY24 net profit rising by 83% YoY to Rs 28.5 crore. Its revenue improves by 59.1% YoY, driven by a robust performance in the consumer segment. It appears in ascreener of companies with low debt.

  • Ambuja Cements falls despite a 20.4% YoY rise in its net profit to Rs 905.6 crore in Q1FY24. Revenue grows by 8.5% YoY, aided by an improvement in sales. Its EBITDA margin expands by 288 bps YoY on the back of reduced employee benefits and power & fuel expenses. The company features in a screener of stocks with increasing revenue for the past two quarters.

  • Syrma SGS Technology acquires a 51% stake (17.7 lakh shares) in Johari Digital Healthcare for Rs 229.5 crore. This marks the firm's entry into the lucrative electronic medical devices market.

  • Thermax rises despite its Q1FY24 net profit falling 0.1% YoY to Rs 58.9 crore. However, its revenue grows by 18.6% YoY on the back of robust growth in the industrial products and green solutions segment. The company appears in a screener of stocks with strong momentum.

  • TVS Motor Co is rising as its total wholesales in July increase by 3.6% YoY to 3,25,977 units, led by healthy growth in domestic two-wheeler sales. Its total two-wheeler wholesales improve by 4.2% YoY, driven by a 17% YoY growth in domestic two-wheeler wholesales. However, its exports decline by 20.4% YoY.

  • Power Grid Corporation of India rises as its board of directors approves an investment in an 85 MW solar power project at Nagda, Madhya Pradesh. The project will cost Rs 554.9 crore and will be implemented in 10 months. The company appears in a screener of stocks with improving RoCE.

  • Morgan Stanley maintains its ‘Overweight’ rating on Navin Fluorine International but lowers the target price to Rs 4,951. The brokerage is bullish on the company’s balanced business mix, strong agrochemical portfolio, and new orders. Despite a 17.4% decline in net profit to Rs 61.5 crore, the company's revenue has increased by 23.5% to Rs 491.2 crore in Q1FY24.

  • GE Power India is rising as it bags a contract worth Rs 444 crore from Gujarat State Electricity Corp for the manufacturing and installation of a flue gas desulfurization system. The stock shows up in a screener for companies with zero promoter pledge.

  • Bikaji Foods International rises to an all-time high of Rs 504 as its Q1FY24 net profit increases by 156.5% YoY to Rs 41.7 crore. The growth was due to lower inventory and finance expenses. Its revenue grows by 15.1% YoY on the back of growth in the ethnic and western snacks segment. The company appears in a screener of stocks with strong annual EPS growth.

  • Metro Brands’ Q1FY24 net profit declines by 11.4% YoY to Rs 92.8 crore on the back of higher input costs and employee expenses. However, its revenue rises by 14.7% YoY as it expands its presence across markets. The company added 27 new stores and entered eight new cities in Q1. It shows up in a screener for companies with cash flows from operations declining over the past two years.

Riding High:

Largecap and midcap gainers today include Laurus Labs Ltd. (364.60, 1.76%), Bayer Cropscience Ltd. (4,584.25, 1.71%) and Divi's Laboratories Ltd. (3,690.60, 1.40%).

Downers:

Largecap and midcap losers today include NHPC Ltd. (49.20, -5.29%), Zee Entertainment Enterprises Ltd. (226.75, -4.35%) and Max Financial Services Ltd. (775.65, -4.27%).

Crowd Puller Stocks

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

Top high volume gainers on BSE included Star Cement Ltd. (158.70, 10.36%), JM Financial Ltd. (82.55, 5.63%) and Prism Johnson Ltd. (129.35, 4.06%).

Top high volume losers on BSE were Redington Ltd. (164.20, -10.37%), Campus Activewear Ltd. (290.00, -4.29%) and Bosch Ltd. (18,262.25, -3.86%).

KEC International Ltd. (633.85, 1.36%) was trading at 19.7 times of weekly average. Metro Brands Ltd. (1,059.70, 1.77%) and Triveni Turbine Ltd. (398.40, 1.31%) were trading with volumes 10.4 and 10.3 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

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

Stocks touching their year highs included - Berger Paints (India) Ltd. (711.65, 1.32%), Caplin Point Laboratories Ltd. (910.00, 0.28%) and Carborundum Universal Ltd. (1,240.55, -3.58%).

Stock making new 52 weeks lows included - Campus Activewear Ltd. (290.00, -4.29%).

6 stocks climbed above their 200 day SMA including PVR INOX Ltd. (1,609.15, 2.79%) and Laurus Labs Ltd. (364.60, 1.76%). 23 stocks slipped below their 200 SMA including Redington Ltd. (164.20, -10.37%) and Rain Industries Ltd. (163.25, -3.97%).

 
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Trendlyne Marketwatch
01 Aug 2023
Market closes flat, Bosch's Q1 net profit up by 22.5% YoY to Rs 409.3 crore

Trendlyne Analysis

Nifty 50 closed at 19,733.55 (-20.3, -0.1%) , BSE Sensex closed at 66,459.31 (-68.4, -0.1%) while the broader Nifty 500 closed at 17,051.15 (-7.9, -0.1%). Of the 1,950 stocks traded today, 1,146 were in the positive territory and 745 were negative.

Indian indices pare the early gains from the morning session and close flat, with the Nifty 50 closing at 19,734. The volatility index, Nifty VIX, dropped by 1.2% and closed at 10.3 points. Bosch’s Q1FY24 net profit increases by 22.5% YoY to Rs 409 crore against the consensus estimates of Rs 384 crore.

Nifty Smallcap 100 closed in the green, while Nifty Midcap 100 closed flat, following the benchmark. Nifty IT and Nifty Metal closed higher, compared to Monday’s closing levels. According to Trendlyne’s sector dashboard, coal emerged as the top-performing sector of the day, with a rise of over 4.3%.

Most European indices trade in the red. US indices futures trade lower, indicating a negative start. The data released by Hamburg Commercial Bank (HCOB) indicated that the Eurozone’s July manufacturing purchasing managers’ index (PMI) contracted to 42.7 from 43.4 in June. The Eurozone manufacturing PMI for July is at a 38-month low, with the sharpest decline reported from France, Germany, Austria and Ireland.

  • Escorts Kubota sees a long buildup in its August 31 future series as its open interest rises 29% with a put-call ratio of 0.72.

  • Escorts Kubota touches a 52-week high as its net profit jumps 106.2% to Rs 289.9 crore in Q1FY24. Its revenue rises 15.9% YoY to Rs 2,355.2 crore. The company features in a screener of stocks with strong momentum.

  • Yes Bank rises as it clarifies reports about the acquisition of Spandana Sphoorthy. The bank aims to enhance its business in priority sectors through organic and inorganic sources, but at present, it has not made any acquisitions. It appears in a screener of stocks with increasing profits for the past two quarters.

  • PVR Inox rises despite reporting a net loss of Rs 44.1 crore in Q1FY24, against a net profit of Rs 68.3 crore in Q1FY23. The loss is due to higher consumption of food & beverage and finance expenses. Its revenue grows by 32.4% YoY on the back of robust growth in the movie exhibition segment. The company appears in a screener of stocks with declining net profit and margins.

  • Mahindra & Mahindra is rising as its total auto wholesales in July grow by 18% YoY to 66,124 units. The increase is led by utility vehicle sales volumes increasing by 30% YoY to 36,205 units, its highest-ever SUV sales in a month. The company’s farm equipment segment also sees its total wholesales rise by 8% due to healthy domestic demand, which offsets the fall in exports.

  • Coal India rises as its July production grows by 13.4% YoY to 53.6 metric tons. The company appears in a screener of stocks with improving RoA.

  • India’s fiscal deficit widens by 21.2% YoY to $4.51 trillion in Q1FY24. This increase is due to a strong improvement in capital expenditure, a rise in tax devolution to state governments, and efforts to offset the increase in non-tax revenues.

  • Ambuja Cements, Carborundum Universal, Engineers India and Hindustan Petroleum’s weekly average delivery volumes rise ahead of their Q1FY24 results tomorrow.

  • Axis Direct downgrades its rating on IDFC First Bank to ‘Hold’ from ‘Buy’ but raises the target price to Rs 90. This implies an upside of 1.9%. The brokerage sees a limited upside for the stock, given its current valuation. However, it remains positive about the bank’s prospects due to its stable margins, strong growth in advances, and improving asset quality.

  • Bosch rises as its Q1FY24 net profit increases by 22.5% YoY to Rs 409.3 crore. Its revenue also grows by 20.7% YoY, driven by the automotive products segment. The company appears in a screener of stocks with high TTM EPS growth.

  • Bajaj Auto’s total monthly wholesales in July fall by 10% YoY to 3,19,747 units due to a 15% YoY decline in total two-wheeler wholesales. However, the company’s commercial vehicle wholesales rise by 29% YoY. The stock shows up in a screener for companies with declining cash flows.

  • Larsen & Toubro's arm, L&T Construction, wins multiple orders worth Rs 2,500-5,000 crore for its heavy civil infrastructure business. The orders include an underground metro project from Rail Vikas Nigam and a mandate and rehabilitation of structures for special systems from a Middle Eastern client.

  • Hero MotoCorp's stock falls over 4% as ED reportedly raids its chairman Pawan Munjal’s residence in connection with a case by the Directorate of Revenue Intelligence. It appears on a screener for volume shocker stocks.

  • Reliance Jio gains 30.4 lakh wireless subscribers in May on a net basis, while Bharti Airtel adds 13.3 lakh and Vodafone Idea loses 28.9 lakh.

  • Cochin Shipyard rises as it is upgraded to 'Schedule A' from 'Schedule B' of central public sector enterprise. This will enable the company to operate with the larger senior management capacity required for managing its seven units across the country. The company appears in a screener of stocks nearing a 52-week high with significant volumes.

  • IRB Infrastructure Developers is falling as its Q1FY24 net profit decreases by 63.2% YoY to Rs 133.8 crore due to increased roadwork and site expenses. Revenue also declines by 12.5% YoY due to poor performance in the construction & unallocated corporate segment. It appears in a screener of stocks with weak momentum.

  • Reliance Industries is falling despite signing an MoU with Brookfield Asset Management to explore opportunities to manufacture renewable energy and decarbonization equipment in Australia. Brookfield has outlined a plan to invest $20-30 billion over the next 10 years to accelerate its energy transition.

  • Petronet LNG is rising as its Q1FY24 net profit increases by 13% YoY to Rs 819.3 crore, aided by a 20.2% YoY fall in the cost of raw materials. However, its revenue declines by 18.3% YoY to Rs 11,656.4 crore. The stock shows up in a screener for companies with net profit growth and profit margin growth.

  • Transport Corporation of India is rising as its Q1FY24 net profit increases by 5.9% YoY to Rs 82.3 crore. However, its revenue falls by 4.6% YoY due to poor performance in the seaways division. It appears in a screener of companies with zero promoter pledge.

  • India’s manufacturing PMI falls marginally to 57.7 in July from 57.8 in June. The PMI reading, however, stays above the 50-mark for the 25th consecutive month, indicating an expansion in manufacturing activity.

  • Rail Vikas Nigam rises as it bags two projects worth Rs 331.6 crore from Madhya Pradesh Poorv Kshetra Vidyut Vitran Co. The order involves the supply, installation, testing and commissioning of new transmission lines in two packages of Jabalpur Company Area. The company appears in a screener of stocks with improving cash flow from operations.

  • Sterling and Wilson Renewable Energy is falling as promoter Shapoorji Pallonji and Co sells a 0.4% stake in the company. It now holds an 18.1% stake.

  • DLF is falling as reports suggest that a promoter sells a 0.9% stake worth Rs 1,185 crore in the company in a block deal.

  • Jefferies downgrades its rating on GAIL to 'Underperform' with a target price of Rs 105. The brokerage says the company's Q1FY24 results took a hit due to the transmission and petrochemical segments. It also expects high gas prices to restrain EBITDA growth in transmission.

  • Engineers India is falling despite bagging an order worth Rs 837.3 crore from Oil and Natural Gas Corp for the renovation of the Hazira plant in Gujarat. The project is estimated to be completed in 45 months. The stock shows up in a screener for companies with declining cash flows from operations over the past two years.

  • KEI Industries falls despite its Q1FY24 net profit rising by 17% YoY to Rs 121.4 crore due to lower inventory expenses. However, its revenue grows by 14.1% YoY on the back of the cables & wires and engineering, procurement & construction projects segments. The company appears in a screener of stocks with improving book value per share.

  • Centre raises windfall tax on locally produced crude oil to Rs 4,250 per tonne from Rs 1,600 earlier. It also increases the export tax on diesel to Rs 1 per litre from 'Nil', while keeping it unchanged on petrol and aviation turbine fuel (ATF).

  • Adani Energy Solutions (formerly Adani Transmission) rises despite its Q1FY24 net profit decreasing by 5.9% YoY to Rs 175.1 crore. However, its revenue grows by 16.1% YoY on the back of robust growth in the generation, transmission & distribution and trading segments. The company appears in a screener of stocks with declining quarterly profits.

  • Maruti Suzuki India’s Q1FY24 net profit jumps 143.7% YoY to Rs 2,525.2 crore, aided by better realisations and a 14.3% YoY decline in raw materials prices. The revenue rises by 22% YoY, driven by a 6.4% YoY growth in total sales volume in Q1. The stock shows up in a screener for companies with high TTM EPS growth.

Riding High:

Largecap and midcap gainers today include IDBI Bank Ltd. (62.95, 8.63%), Atul Ltd. (7210.30, 6.09%) and Indian Railway Finance Corporation Ltd. (40.50, 6.02%).

Downers:

Largecap and midcap losers today include Power Grid Corporation of India Ltd. (251.80, -5.36%), Polycab India Ltd. (4,630.20, -3.87%) and Max Healthcare Institute Ltd. (572.30, -3.80%).

Crowd Puller Stocks

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

Top high volume gainers on BSE included KIOCL Ltd. (237.95, 15.09%), Jindal Worldwide Ltd. (339.50, 9.68%) and IDBI Bank Ltd. (62.95, 8.63%).

Top high volume losers on BSE were KEI Industries Ltd. (2,270.35, -6.55%), Aptus Value Housing Finance India Ltd. (267.90, -5.34%) and Hero MotoCorp Ltd. (3,102.10, -3.17%).

Affle (India) Ltd. (1,138.85, 6.06%) was trading at 9.8 times of weekly average. Polyplex Corporation Ltd. (1,282.70, 4.79%) and Grindwell Norton Ltd. (2,439.50, 5.24%) were trading with volumes 8.3 and 8.1 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

70 stocks took off, crossing 52 week highs, while 1 stock tanked below their 52 week lows.

Stocks touching their year highs included - Akzo Nobel India Ltd. (2,820.00, 1.61%), Apollo Tyres Ltd. (427.25, -1.28%) and Astral Ltd. (2,000.60, 1.59%).

Stock making new 52 weeks lows included - UPL Ltd. (625.70, 0.16%).

18 stocks climbed above their 200 day SMA including KIOCL Ltd. (237.95, 15.09%) and Jindal Worldwide Ltd. (339.50, 9.68%). 4 stocks slipped below their 200 SMA including Aptus Value Housing Finance India Ltd. (267.90, -5.34%) and Blue Dart Express Ltd. (6,611.30, -1.74%).

 
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The Baseline
01 Aug 2023
Five Construction and Metal Stock Picks from Analysts
By Satyam Kumar

This week we look at five analyst picks from the construction and metal sector: 

  1. Larsen & Toubro: HDFC Securities maintains its 'Buy' rating on this construction and engineering company, with a target price of Rs 3,002, implying an upside of 12.2%. Analysts Parikshit D Kandpal, Nikhil Kanodia, and Manoj Rawat are optimistic about its all-time high order book of Rs 4.1 lakh crore. In Q1FY24, the company's profit surged by 46.5% YoY to Rs 2,493 crore, while revenue saw a 33.5% YoY increase, surpassing Trendlyne Forecaster's estimates by 18% and 19%, respectively.

The analysts at HDFC Securities are confident in the company's consistent outperformance, driven by robust execution. They believe that infrastructure margins have reached the lowest point and are likely to improve in the future. Analysts also expect an improvement in the performance of its subsidiaries.

The analysts estimate a robust prospects pipeline for 9MFY24, with an estimated value of Rs 10 lakh crore compared to Rs 7.5 lakh crore a year ago, indicating promising growth opportunities. Notably, they estimate a significant uptick in the hydrocarbon prospect pipeline, valued at Rs 3.5 lakh crore, suggesting potential opportunities in the energy sector.

  1. Jindal Stainless: ICICI Securities maintains a ‘Buy’ call on this steel manufacturer with a target price of Rs 445. This indicates an upside of 13.1%. In Q1FY24, the company reported a 132.1% YoY growth in net profit to Rs 745.8 crore and an 86.3% increase in revenue. It beat Trendlyne Forecaster’s net profit estimate by 23.9%. The company’s EBITDA stands at Rs 1,120 crore, up 35% YoY (beating the brokerage’s estimate by 9%). 

Analysts Amit Dixit, Mohit Lohia and Pritish Urumkar remain positive about Jindal Stainless as its shipments rose by 54% YoY to a record level. Its domestic subsidiaries have also performed well, while overseas subsidiaries faced challenges. The management foresees a 20-25% growth in volume in FY24 and FY25 each. They expect the acquisition of Jindal United Steel to eliminate related-party transactions and drive synergies across the full value chain. 

The analysts say, “We perceive Jindal Steel to be in the pole position to capture domestic growth as it is the only domestic producer with spare capacity.” They have raised their EBITDA estimates for FY24 and FY25  to  16% and 12%, respectively, factoring in higher sales volume and lower power and fuel costs.

  1. Dalmia Bharat: Geojit BNP Paribas upgrades its rating on this cement manufacturer to ‘Buy’ from ‘Hold’ and raises the target price to Rs 2,234 from Rs 2,200. This implies an upside of 14.3%. In Q1FY24, the firm’s net profit fell 33.7% YoY to Rs 130 crore but revenue grew by 9.8% YoY. 

Despite the fall in net profit, analyst Vincent Andrews turns positive about the company’s prospects, given its healthy volume growth and a strong focus on capacity expansion. He is optimistic about its FY24 volume growth guidance of 15-17% and believes it is on track to achieve this target through organic expansion and acquisitions. He adds, “The demand outlook is positive, given the Centre’s focus on infrastructure & housing and pre-election spending.”

Although Dalmia Bharat’s EBITDA margin contracted despite volume growth in Q1, the analyst anticipates margins to improve in the coming quarters due to declining fuel costs. He expects the company’s net profit to grow at a CAGR of 38.3% over FY23-25. 

  1. Tata Steel: Bob Capital Markets maintains a ‘Buy’ call on this steel manufacturer with a target price of Rs 145, indicating an upside of 17.6%. In Q1FY24, the company’s profit fell by 91.8% YoY to Rs 634 crore, and revenue declined by 4.8% YoY. Its EBITDA was 6% ahead of consensus but 1% below BoB’s forecast. 

Analysts Kirtan Mehta and Yash Thakur remain positive as Tata Steel is prioritizing capex plans over leverage targets. They say, “This is a positive decision as completion of ongoing capex will generate cash flows and help lower leverage over the medium term.” The company has maintained its capex plan of Rs 16,000 crore for FY24. 

The analysts also remain optimistic about Europe operations turning EBITDA-positive, the potential resolution of the restructuring in UK operations, and the startup of the blast furnace at TSK. “We remain confident of Tata Steel’s ability to weather the downturn and deliver on earnings-accretive growth,” they conclude.

  1. UltraTech Cement: KRChoksey keeps its ‘Buy’ rating on this cement maker and raises the target price to Rs 9,439 from Rs 9,105. This implies an upside of 13.5%. In Q1FY24, the company’s net profit rose by 6.6% YoY to Rs 1,688.5 crore and revenue grew by 17%. It beat Trendlyne Forecaster’s revenue and profit estimates by 2% and 0.8% respectively. 

Analyst Abhishek Agarwal attributes the firm’s healthy Q1 performance to a 20% YoY growth in volume, led by robust demand. He also cites lower energy costs for margin expansion and profit growth. He believes that “the recent correction in energy prices will continue to ease margin pressures in the medium-term”.

With the demand environment remaining strong, Agarwal expects the company’s capacity expansion efforts to drive future growth and market share gains. “Given the ongoing capex, UltraTech Cement is poised to maintain its industry leadership,” he adds. The analyst anticipates the company’s revenue to grow at a CAGR of 16.4% over FY23-25. 

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

(You can find all analyst picks here)

 
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Trendlyne Marketwatch
31 Jul 2023
Market closes higher, UPL's Q1FY24 net profit drops 81.1% YoY to Rs 166 crore

Trendlyne Analysis

Nifty 50 closed at 19,753.80 (107.8, 0.6%), BSE Sensex closed at 66,527.67 (367.5, 0.6%) while the broader Nifty 500 closed at 17,059.00 (110.7, 0.7%). Of the 1,978 stocks traded today, 1,257 were on the uptick, and 670 were down.

Indian indices closed in the green, with the Nifty 50 rising above the 19,750 mark. The Indian volatility index, Nifty VIX, rose sharply by 2.7%. NTPC closed over 3.6% higher as its Q1FY24 net profit increased by 23.8% YoY to Rs 4,873.2 crore, led by a decline in fuel costs.

Nifty Smallcap 100 and Nifty Midcap 100 closed in the green and outperformed the benchmark index. Nifty Energy and Nifty Realty closed higher than Friday’s close. According to Trendlyne's sector dashboard, General Industrials was the top-performing sector of the day.

Major Asian indices closed in the green, except for Taiwan’s TSEC 50 index, which closed lower. European indices recovered from their day lows and traded flat or higher, in line with the US index futures. Investors awaited key eurozone growth and inflation data, scheduled to be released later today. Brent crude oil futures traded higher and are set to post their biggest monthly gains since January 2022.

  • Money flow index (MFI) indicates that stocks like Finolex Industries, Sterling and Wilson Renewable Energy, Engineers India and Finolex Cables are in the overbought zone.

  • UPL is falling as its Q1FY24 net profit plunges by 81.1% YoY to Rs 166 crore, and revenue decreases by 17.2% YoY due to a 21.2% YoY drop in its crop protection business. The company has also slashed its FY24 revenue guidance to 1-5% from 6-10% earlier. Mike Frank, the CEO of UPL, says, "The global agrochemical industry has been going through a challenging phase over the past two quarters as distributors prioritized destocking and focused on tactical purchases amid high channel inventories."

  • NHPC touches a 52-week high as reports suggest that 2.3 crore shares (0.2% equity), amounting to Rs 116.1 crore, have changed hands in a block deal.

  • Piramal Enterprises plunges more than 5% as its net profit declines 95% YoY to Rs 577 crore in Q1FY24. This fall is due to a one-time exceptional profit the company earned in Q1FY23. Its revenue improves by 126.3% YoY, aided by growth in assets under management. The company appears in a screener of stocks with a decline in net profit and profit margin (YoY).

  • IDFC First Bank rises to a new 52-week high of Rs 88.3 as its Q1FY24 net profit increases by 61.3% YoY to Rs 765.2 crore. Its net interest income also grows by 39.5% YoY, driven by the treasury and retail banking segments. The bank's asset quality improves as its gross and net NPA ratios fall by 119 bps and 60 bps YoY respectively. It appears in a screener of stocks with increasing quarterly net profit and margins.

  • Welspun India surges by more than 10% as its Q1FY24 net profit jumps 621.4% YoY to Rs 162.7 crore, and its EBITDA margin expands by 6.5 percentage points YoY to 14.2%. Its revenue rises 11.6% YoY, led by healthy growth in the home textiles and flooring segments. BK Goenka, the Chairman of Welspun Group, says, "The domestic consumer business further strengthened its market leadership, with Brand Welspun being the most widely distributed Home Textile brand in India, increasing its reach with a presence at more than 13,000 outlets pan India."

  • Bharti Airtel prepays a loan of Rs 8,024 crore to the Department of Telecommunications. The loan is part of its deferred liabilities for the spectrum acquired in the 2015 auction. The company appears in a screener of stocks with strong momentum.

  • Mangalore Refinery And Petrochemicals is falling as its Q1FY24 net profit declines by 62.6% YoY to Rs 1014.8 crore. Revenue also decreases by 23% YoY. It appears in a screener of stocks with falling profit margins YoY.

  • Rajneesh Karnatak, MD & CEO of Bank of India, says it targets a deposit growth of 10-11% and loan growth of Rs 11-12% in FY24. He adds that the bank will maintain its net interest margins at 3-3.05%.

  • HDFC Securities downgrades its rating on JK Lakshmi Cement to ‘Add’ from ‘Buy’ and lowers the target price to Rs 700 from Rs 815. This implies an upside of 13.4%. The brokerage believes the company’s plans of capacity expansion and acquisitions by raising debt will impact its balance sheet and return ratios. It also adds that the firm’s net profit in Q1FY24 missed its estimates.

  • NTPC is rising as its Q1FY24 net profit increases by 23.8% YoY to Rs 4,873.2 crore, led by a decline in fuel costs. However, its revenue marginally falls by 0.2% YoY due to a 1.3% YoY decrease in its generation segment. The management also announces the separation of its coal mining business into a 100% subsidiary, NTPC Mining.

  • UCO Bank falls despite its Q1FY24 net profit rising by 80.8% YoY to Rs 223.5 crore. Its net interest income grows by 35.6% YoY on the back of robust growth in the treasury, corporate banking and retail banking operations segment. The bank's asset quality improves as its gross and net NPA ratios fall by 294 bps and 131 bps YoY respectively. The company appears in a screener of stocks with increasing quarterly revenue.

  • GAIL is rising as UBS double-upgrades its rating to ‘Buy’ from ‘Sell’ and raises the target price to Rs 150. The brokerage believes that the markets are yet to fully factor in the benefits of realized tariffs (from tariff integration), the scope of India's growing gas consumption, and the expansion of GAIL's pipeline.

  • SBI Cards and Payment Services falls as its net profit decreases by 0.5% YoY to Rs 593.3 crore. However, its revenue rises by 4% YoY on the back of growth in interest and fees & commission income. The NBFC's asset quality declines as its gross and net NPA ratios increase by 17 bps and 9 bps YoY respectively. The company appears in a screener of stocks with declining net profit and margins.

  • Glenmark Life Sciences is rising as reports suggest that Nirma Group is the frontrunner to acquire the company for an estimated consideration of Rs 6,664 to 7,000 crore from Glenmark Pharmaceuticals.

  • The Delhi High Court rejects SpiceJet’s former promoter Kalanithi Maran’s plea seeking Rs 1,323 crore damage claim from the company, according to reports. The high court also refuses to interfere with the 2018 arbitral award that has asked SpiceJet to refund Rs 579 crore along with interest to Maran.

  • Nazara Technologies rises as its net profit increases 7.6X QoQ to Rs 19.5 crore due to lower content, event and web server expenses. However, its revenue falls by 12% QoQ on the back of a decline in the gaming and eSports segments. The company appears in a screener of stocks with increasing quarterly net profit and margins.

  • Metal stocks like APL Apollo Tubes, NMDC, Hindalco Industries, Tata Steel and Steel Authority of India are rising in trade. All the constituents of the broader sectoral index, BSE Metal, are also trading in the green.

  • Bandhan Bank rises more than 2% in trade as reports suggest that 1.8 crore shares (1.1% equity), amounting to Rs 385.4 crore, have changed hands in a block deal.

  • Chalet Hotels rises as its Q1FY24 net profit increases by 210.6% YoY to Rs 88.7 crore, while revenue improves by 21% YoY. The profit rise is on the back of high deferred tax credit. The company features in a screener for stocks with strong annual EPS growth.

  • Bank of India rises as its Q1FY24 net profit increases 2.8X YoY to Rs 1,551.1 crore. Its net interest income also grows by 44% YoY on the back of robust growth in the treasury, wholesale banking and retail banking operations segment. Its asset quality improves as the gross and net NPAs decline by 263 bps and 56 bps YoY respectively. The company appears in a screener of stocks with increasing quarterly profits.

  • Power Grid Corp of India rises as it wins transmission system projects for the evacuation of power from a renewable energy zone in Rajasthan and for a solar energy zone in Ananthpuram and Kurnool, Andhra Pradesh.

  • Macquarie remains cautious on the hospitals space in the medium term as it believes that soft demand and capacity expansion may impact the companies’ profitability. It initiates an ‘Underperform’ rating on Apollo Hospitals and Max Healthcare.

  • Power Mech Projects surges to a new all-time high of Rs 5,069.5 per share as it bags an order worth Rs 30,438 crore from SAIL in a consortium with PC Patel Infra. The order is for a mine development & operation (MDO) project of the Tasra open cast project (OCP) in Dhanbad, which will also include setting up a 3.5 MTPA coal washery and supplying steel grade coking coal to SAIL.

  • United Breweries falls as its Q1FY24 net profit decreases by 16% YoY to Rs 136.2 crore due to higher excise duty expenses. However, its revenue rises by 0.9% YoY on the back of marginal growth in the beer segment. The company appears in a screener of stocks with a major fall in TTM net profit.

  • Marico remains flat despite a 15.6% YoY rise in its net profit to Rs 427 crore in Q1FY24. However, its revenue declines by 3.2% YoY on the back of a fall in the prices of products. Its EBITDA margin improves by 494 bps YoY, aided by a reduction in the cost of raw materials. The company appears in a screener of stocks with high promoter pledges.

Riding High:

Largecap and midcap gainers today include Indian Railway Finance Corporation Ltd. (38.20, 8.99%), Adani Power Ltd. (273.30, 5.70%) and Supreme Industries Ltd. (3,550.00, 5.66%).

Downers:

Largecap and midcap losers today include Syngene International Ltd. (796.10, -3.49%), Apollo Hospitals Enterprise Ltd. (5,173.45, -3.24%) and Zomato Ltd. (84.10, -3.11%).

Crowd Puller Stocks

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

Top high volume gainers on BSE included Hindustan Copper Ltd. (141.10, 10.36%), Welspun India Ltd. (109.65, 9.32%) and Indian Railway Finance Corporation Ltd. (38.20, 8.99%).

Top high volume losers on BSE were Rossari Biotech Ltd. (840.00, -3.97%), Narayana Hrudayalaya Ltd. (1,010.50, -3.50%) and NLC India Ltd. (117.00, -1.60%).

KIOCL Ltd. (206.75, 7.99%) was trading at 15.0 times of weekly average. Eris Lifesciences Ltd. (791.70, 2.12%) and NOCIL Ltd. (220.80, 2.96%) were trading with volumes 11.4 and 10.0 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

81 stocks took off, crossing 52-week highs, while 1 stock hit their 52-week lows.

Stocks touching their year highs included - Abbott India Ltd. (23,999.35, -0.25%), Balkrishna Industries Ltd. (2,542.35, 3.16%) and Bharat Forge Ltd. (931.45, 3.17%).

Stock making new 52 weeks lows included - UPL Ltd. (624.70, -0.07%).

17 stocks climbed above their 200 day SMA including KIOCL Ltd. (206.75, 7.99%) and Adani Power Ltd. (273.30, 5.70%). 6 stocks slipped below their 200 SMA including Blue Dart Express Ltd. (6,728.15, -2.87%) and United Breweries Ltd. (1,540.25, -1.92%).