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Trendlyne Marketwatch
20 Jul 2023
Market sees a record close, HDFC Securities keeps ‘Buy’ rating on Tanla Platforms

Trendlyne Analysis

Nifty 50 closed at 19,979.15 (146, 0.7%), BSE Sensex closed at 67,571.90 (474.5, 0.7%) while the broader Nifty 500 closed at 17,042.55 (89.1, 0.5%). Of the 1,951 stocks traded today, 951 were on the uptick, and 925 were down.

Indian indices rose towards the final hour of the trading session and closed in the green for a sixth consecutive session. The benchmark Nifty 50 index rose over 145 points and closed above the 19,950 mark. Can Fin Homes closed in the green after its Q1FY24 net profit rose 13.1% YoY to Rs 183.5 crore and revenue increased by 34.8% YoY driven by healthy demand for housing loans.

Nifty Smallcap 100 and Nifty Midcap 100 closed in the green, following the benchmark index. Nifty FMCG and Nifty Pharma closed above Wednesday’s close. According to Trendlyne's sector dashboard, Food, Beverages & Tobacco was the top-performing sector of the day. 

European indices traded in the green, despite the Asian indices closing mixed. US index futures traded in the red as investors assessed Q1FY24 earnings from major US companies. Netflix shares fell nearly 9% in after-hours trading on Wednesday after its revenue fell short of analyst estimates. Brent crude oil futures recovered from its day low and traded flat on a volatile day of trade.

  • ABB India sees a short buildup in its July 27 future series as its open interest rises 16.5% with a put-call ratio of 0.42.

  • Kirloskar Pneumatic Co falls despite its Q1FY24 net profit rising by 10% YoY to Rs 17.9 crore. However, its revenue drops by 10% YoY on the back of a decline in the compression systems segment. The company appears in a screener of stocks in the 'Sell' zone.

  • Zensar Technologies is rising as its Q1FY24 net profit increases 31% QoQ to Rs 156.2 crore due to reduced employee costs and the purchase of traded goods. Its revenue also improves by 1.2% QoQ, as growth in its digital and application services segment remains flat. The stock shows up in a screener for companies with high promoter stock pledges.

  • Sun Pharmaceutical Industries and Century Textiles and Industries touch their 52-week highs of Rs 1,102.7 and Rs 990.9 respectively. The former has risen 9.2% over the past month, while the latter increased by 16.8%.

  • Media, software & services and hardware technology & equipment sectors rise by more than 5.8% over the past week.

  • Havells India falls despite an 18% YoY rise in net profit to Rs 287.1 crore in Q1FY24 due to lower inventory expenses. Its revenue grows by 13.9% YoY on the back of strong performance in cables and Lloyd consumer segments. It appears in a screener of stocks with increasing quarterly profits.

  • India’s domestic crude oil production stands at 2.4 MMT (million metric tonnes) in June, according to the data released by the Oil Ministry. Meanwhile, crude oil imports increase marginally by 0.6% YoY.

  • Sensex and Nifty 50 hit all-time highs of 67,171.4 and 19,972.8, respectively. Nifty Bank also reaches a record high of 46,214.5.

  • HDFC Securities keeps its ‘Buy’ rating on Tanla Platforms and increases the target price to Rs 1,350 from Rs 1,050. This implies an upside of 19%. The brokerage expects the company’s growth to accelerate, driven by a revival in its enterprise business due to rising volumes. It also sees traction in the platform vertical, led by new product launches. It anticipates the company’s revenue to grow at a CAGR of 23.7% over FY23-26.

  • Can Fin Homes is rising as its Q1FY24 net profit grows 13.1% YoY to Rs 183.5 crore and revenue increases by 34.8% YoY driven by healthy demand for housing loans, increased focus on retail lending and improving asset quality. The stock shows up in a screener for companies with profits increasing sequentially over the past three quarters.

  • SJVN touches a new all-time high of Rs 50.9 per share as its subsidiary, SJVN Green Energy, signs two power purchase agreements (PPA) worth Rs 1,950 crore for 300 MW renewable energy projects. The first PPA is for a 200 MW ground-mounted solar project for Maharashtra State Electricity Distribution. The second PPA is for a 100MW wind power project in Delhi with Solar Energy Corp of India on a build, own and operate basis.

  • Hatsun Agro Products surges more than 7% as its net profit jumps 54.3% YoY to Rs 80.1 crore in Q1FY24. Revenue grows 6.8% YoY, helped by improvement in sales of milk and milk products. The company's EBITDA margin expands 230 bps YoY on the back of reduced expenses. It appears in a screener of stocks with high volume and gain.

  • Jefferies maintains its ‘Buy’ rating on Newgen Software Technologies with a target price of Rs 860. The brokerage says that the company’s revenue is driven by its license sales and anticipates further growth driven by its banking vertical in the coming quarters.

  • Olectra Greentech awards a Rs 395.1 crore order to Megha Engineering & Infrastructure for the construction of a greenfield EV manufacturing facility in Seetharampur, Hyderabad. It is expected to be completed within two years.

  • As the special pre-open call auction held by the National Stock Exchange for Reliance Industries ends, Jio Financial Services’ shares are valued at Rs 261.85 each. According to reports, the share price of the demerged entity beat brokerages’ estimates of Rs 160-190 per share.

  • Finolex Industries is rising as its net profit grows 16.2% YoY to Rs 115.3 crore in Q1FY24. However, revenue remains flat due to decreased revenue from the PVC resin segment and a correction in the prices of PVC pipes. Its EBITDA margin improves by 230 bps YoY, aided by a dip in raw material and finance costs. The company features in a screener of weekly momentum gainers.

  • Dr. Reddy's Laboratories touches a 52-week high today as the USFDA completes a pre-approval inspection (PAI) and routine GMP inspection at their API manufacturing facility in Srikakulam, Andhra Pradesh. It has given a classification of 'no action indicated' (NAI) for the facility. It appears in a screener of stocks with strong momentum.

  • The Ministry of Heavy Industries is expected to issue a tender for applications for the Rs 18,000 crore Advanced Chemistry Cells (ACC) project under the PLI scheme. The scheme aims to provide incentives for the production of 20GWh battery storage capacity. In the first round, Ola Electric, Reliance New Energy, and Rajesh Exports have been deemed eligible for incentives.

  • PNC Infratech rises to a new 52-week high of Rs 368.6 as it signs a concession agreement with National Highway Authority of India for three hybrid annuity mode projects costing Rs 3,264.4 crore. The projects include six-lane greenfield construction on the Varanasi-Kolkata highway in three packages.

  • Vijay Kedia reduces his stake in Ramco Systems to below 1% in Q1FY24, compared to 1.1% held in Q4FY23.

  • Nuvama Wealth upgrades its rating on Bajaj Consumer Care to 'Buy' with a target price of Rs 258. The brokerage believes that Q1FY24 will be the beginning of a promising year for the company. It anticipates a recovery in volumes and robust growth.

  • Ashish Kacholia adds Venus Pipes & Tubes to his portfolio in Q1FY24. He buys a 2% stake in the company.

  • Porinju Veliyath adds Centum Electronics to his portfolio in Q1FY24. He buys a 1% stake in the company.

  • Mastek rises despite a 9.2% YoY drop in its net profit to Rs 70.1 crore in Q1FY24. However, its revenue rises by 22.1% YoY on the back of robust growth in UK & Europe, North America, and Middle East operations. It also signs a definitive agreement to acquire USA-based BizAnalytica for an upfront payment of $16.7 million (Rs 137.2 crore). The company appears in a screener of stocks with negative profit growth and decreasing promoter shareholdings.

  • Tata Communications is rising despite a 29.8% YoY decline in its net profit to Rs 381.7 crore in Q1FY24. However, revenue grows 10.7% YoY on the back of increased revenue from the data services and transformation services segments. Its EBITDA margin plunges 450 bps YoY due to increased expenses. The company appears in a screener of stocks with declining net profit and profit margin (YoY).

Riding High:

Largecap and midcap gainers today include Polycab India Ltd. (4,717.35, 9.48%), HDFC Asset Management Company Ltd. (2,520.15, 4.65%) and PB Fintech Ltd. (776.45, 4.20%).

Downers:

Largecap and midcap losers today include ABB India Ltd. (4,204.00, -6.44%), Shree Cements Ltd. (23,409.05, -2.58%) and ICICI Prudential Life Insurance Company Ltd. (547.75, -2.09%).

Crowd Puller Stocks

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

Top high volume gainers on BSE included Polycab India Ltd. (4,717.35, 9.48%), Hatsun Agro Products Ltd. (1,049.30, 7.52%) and Rail Vikas Nigam Ltd. (128.70, 7.34%).

Top high volume losers on BSE were ABB India Ltd. (4,204.00, -6.44%), Shree Cements Ltd. (23,409.05, -2.58%) and L&T Finance Holdings Ltd. (131.15, -1.76%).

Alembic Pharmaceuticals Ltd. (711.50, 7.33%) was trading at 14.7 times of weekly average. Nippon Life India Asset Management Ltd. (311.30, 4.80%) and Borosil Renewables Ltd. (499.80, 6.06%) were trading with volumes 7.6 and 7.4 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

48 stocks hit their 52-week highs,

Stocks touching their year highs included - Alembic Pharmaceuticals Ltd. (711.50, 7.33%), Ashok Leyland Ltd. (175.70, 1.44%) and Aurobindo Pharma Ltd. (772.60, 2.86%).

11 stocks climbed above their 200 day SMA including Restaurant Brands Asia Ltd. (114.10, 2.93%) and TTK Prestige Ltd. (798.90, 1.76%). 2 stocks slipped below their 200 SMA including Garware Technical Fibres Ltd. (3,091.95, -1.76%) and Network 18 Media & Investments Ltd. (59.70, 0.34%).

 
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The Baseline
20 Jul 2023
Bajaj, Hero come for Royal Enfield | Stocks gaining momentum ahead of results
By Tejas MD

Michael Burry deletes his tweets, because he hates being wrong. But the investor, who became famous for predicting the 2008 financial crisis, is closely followed, and the media documented him in June 2022 warning investors about the coming stock market crash, which he had called “the mother of all crashes”. In March this year, Burry admitted he was wrong to tell investors to sell their stocks. 

In the ever-changing world of stock markets, narratives can quickly shift. US indices are currently at their 52-week highs and Nifty 50 is hovering around its all-time high. 

Last year at this time, it wasn’t just Burry who was worried. Analysts believed a recession was about to hit the global economy, as central banks raised interest rates to combat inflation. 

But the tide turned. As inflation continues to fall, economists say a ‘soft landing’ is likely. Goldman’s Sach has increased its odds of the US avoiding a recession in the next 12 months, to 80%, and India is expected to be the world’s fastest growing economy in FY24.

One sector that has benefited from the changing conditions is the auto sector, which tracks the broader economy - when GDP grows, cars, bikes and tractors start selling. The positive outlook for Indian auto has prompted foreign investors to raise their portfolio allocation to the sector to a record high of 6.5% in June 2023 from 5.2% in June 2022. Domestic investors’ allocation also increased to a multi-month high of 8.2% in June, as they expect strong Q1FY24 earnings for auto companies.

Within India's auto industry, the two-wheeler premium segment has been a hotbed of activity, offering higher margins and a better growth outlook. Top two-wheeler manufacturers are going after this segment with guns blazing. 

Amid the fierce competition, can the undisputed king of premium bikes, Royal Enfield, dodge the ‘bullet’ and remain at the top? Let’s find out. 

In this week’s Analyticks,

  • Ready to rumble: Bajaj and Hero partner with foreign players to take on Royal Enfield 
  • Screener: Nifty 500 outperformers ahead of results with rising Trendlyne momentum score and high durability

Bajaj and Hero go after Royal Enfield to win buyers of premium bikes

Shares of Eicher Motors, which makes Royal Enfield motorcycles, plunged 5% on July 4 after Bajaj Auto and Hero Motocorp announced new motorcycle launches. These were no ordinary launches - Bajaj and Hero have partnered with foreign players Triumph and Harley Davidson to challenge Royal Enfield, the dominant player in the premium motorcycle segment (> 250 cc) with an 86% market share.

These parnerships present the first big threat to Royal Enfield's India dominance - Triumph and Harley are iconic, global bike brands. Who can forget the Terminator riding in on a Harley Davidson FatBoy?

Under threat, Eicher Motors has underperformed both Nifty 50 and Nifty Auto in the past quarter. 

While Hero unveiled the Harley-Davidson X 440, Bajaj Auto launched its Triumph Speed 400 in the first week of July. The pricing of both motorcycles came in lower than expected, at around Rs 2.3 lakh ex-showroom. These two bikes will directly compete with Royal Enfield’s top-selling models - Classic 350 (Rs 1.93 lakh), Himalayan, and Meteor 350. 

The strategic pricing of these new bikes shows how badly Bajaj and Hero’s want to capture market share from Royal Enfield. During the post-launch meeting, Rajiv Bajaj, the CEO of Bajaj Auto, did not hold back. He compared his approach to the infamous American bank robber William Sutton. He said, “When asked, why do you rob banks, he (William Sutton) said, that's where the money is. So if Royal Enfield is where the money is, then we have no choice but to rob that bank."

Niranjan Gupta, Hero’s CEO, said, “We are here to win in the premium segment, whatever it takes.”

It is obvious that the CEOs of these two-wheeler manufacturers are now laser-focused on a segment that was left to Royal Enfield for the past decade. Why the change of heart? 

Premium two-wheelers beat industry’s volume growth, with higher margins

Domestic two-wheeler volumes grew 17% in FY23 after falling for three consecutive years. However, the numbers are still below FY15. During the three years of declining volumes, the premium motorcycle segment fell more slowly, compared to the overall numbers. 

In FY23, premium motorbikes made a strong comeback, rising 37% compared to industry volume growth of 17%. This segment is projected to keep growing faster than the industry.  

Analysts see rising purchasing power and growing incomes driving these sales. India is getting richer, and people's tastes are changing. During 2018-22, India is estimated to have produced 70 new millionaires every day.

A People Research on India’s Consumer Economy (PRICE) report suggests that by 2030, the country's demographics could change from the current inverted pyramid - with a small rich class and a large low-income class - to a rudimentary diamond, where a big part of the low-income group moves up to become middle class. 

These shifts explain the premiumization trend that is gaining momentum across consumer sectors like FMCG and hotels. The auto industry is no different. 

Royal Enfield, which focuses only on the premium segment, is the established leader in this space with a market share of 86%, followed by Jawa (5%), Honda (5%), and Bajaj (3%). Bajaj and Hero are now hoping to put a serious dent in RE’s market share. 

Can Harley and Triumph break Royal Enfield's dominance?

Barring Hero, the other companies below saw rising domestic sales volumes YoY in Q1FY24, indicating robust Indian demand. However, exports for all four two-wheeler manufacturers has been disappointing, falling YoY. Analysts expect muted export growth in FY24.

Following the new vehicle launches, Prabhudas Lilladher saidin its report that the competition will disrupt the market for Royal Enfield, and that the company will need to move fast to maintain its dominance. The brokerage reduced its target price on Eicher Motors by 14% to Rs 3,460. HDFC Securities also reduced its target price as it believes aggressive competition could hurt growth.  

However, ICICI Securities is asking everyone to calm down, and believes that the steep reaction in Eicher Motors’ share price is unwarranted. It expects that the premium 2W market in India will increase in size as consumers have new choices.

The brokerage also predicts that the introductory promotional pricing for Triumph and Harley bikes will end after selling a pre-specified number of units. Notably, only 10% of RE’s domestic sales come from bike models priced at Rs 2.6 lakh on-road. As Bajaj and Hero raise the prices of their new premium bikes from the current Rs 2.3 lakh, the price gap with RE could widen, allowing the company to recapture its market. 

Royal Enfield is fighting back with a plan to roll out two to three motorcycles in the next five months. Right now, RE stands out from the competition with its cult following and the history it brings to the table. Originally a British company, it was acquired by Eicher Motors in 1995, but reached new heights only in the past decade. RE’s units sold rose from 25,000 in 2005 to 8,34,895 in FY23. 

Even though Honda and Jawa tried to compete with Royal Enfield in recent years, they were unable to match its scale and popularity. But Triumph and Harley have arrived in India with their own history and fanbase. The new players have the real potential to accelerate the competition in the premium 2W segment. 

Screener: Nifty 500 outperformers ahead of results, with rising Trendlyne momentum score and high durability

As the Q1 results season takes off, we look at stocks that are rising ahead of their upcoming earnings announcements. The stocks in this screener have outperformed the Nifty 500 over the past week ahead of their results, with increasing Trendlyne momentum scores and high durability. 

The screener shows 28 stocks from the Nifty 500 index and four from the Nifty 50 index. It features stocks from the banking & finance, automobile & auto components and software & services sectors. Major stocks that appear in the screener are Zensar Technologies, Mahindra Holidays & Resorts India, RBL Bank,  MphasiS, Aarti Drugs and Craftsman Automation.

Zensar Technologies has risen 12.7% over the past week, with its Trendlyne momentum score improving by 8.7 points over the past month, in anticipation of the company’s result on Thursday. Axis Securities expects the company’s revenue to grow by 1.8%, owing to increased revenue from the hi-tech segment. The brokerage also expects a recovery in the digital business, driven by the banking, financial services and insurance (BFSI) segment. 

MphasiS has gained  12.2% over the past week, ahead of its result on Thursday. It has also seen a 17-point rise in its Trendlyne momentum score to 51.6 over the past month. Investors expect the company to beat the modest revenue and net profit projections given by analysts, after bellwether TCS easily beat its estimates.

Craftsman Automation comes in with a 9.9% surge in the past week, leading up to its results on July 24. It has a high Trendlyne momentum score of 66.9. Motilal Oswal expects the company’s revenue to jump 10% YoY due to the realisation of revenue from DR Axion India’s acquisition, and growth in the storage segment. The brokerage also estimates its EBITDA margin to remain flat, despite the softening of aluminium costs due to a weak product mix.

You can find some popular screeners here.

Signing off this week,

The Trendlyne Team

 
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Trendlyne Marketwatch
19 Jul 2023
Market closes higher, Bank of Maharashtra's Q1 net profit up by 95.2% YoY

Trendlyne Analysis

Nifty 50 closed at 19,833.15 (83.9, 0.4%), BSE Sensex closed at 67,097.44 (302.3, 0.5%) while the broader Nifty 500 closed at 16,953.50 (81.5, 0.5%). Of the 1,945 stocks traded today, 1,099 showed gains, and 785 showed losses.

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 19,846. The volatility index, Nifty 50 VIX, dropped by 0.9% and closed at 11.6 points. Bank of Maharashtra’s net profit increased by 95.2% YoY to Rs 882 crore in Q1FY24.

Nifty Smallcap 100 and Nifty Midcap 100 closed in the green, following the benchmark index. Nifty Media and Nifty Energy closed sharply higher compared to Tuesday’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 4.1%.

Most European indices trade in the green. US indices futures trade mixed as investor brace for earnings report from Goldman Sachs, Tesla and Netflix. Microsoft shares closed at an all-time high on Tuesday after it announced pricing for its AI suite tools.

  • Money flow index (MFI) indicates that stocks like Aarti Drugs, Sun TV Network, Mahindra Holidays & Resorts Indiaand Bayer Cropscience are in the overbought zone.

  • Century Textiles & Industries rises to a new 52-week high of Rs 979, despite reporting a net loss of Rs 5.9 crore in Q1FY24. This is in contrast with a net profit of Rs 46.3 crore in Q1FY23. Its net sales decrease by 6% YoY due to a drop in the textiles and pulp & paper segments. The company appears in a screener of stocks with declining net cash flow.

  • Jubilant Pharmova is falling as its Q1FY24 net profit declines 86.4% YoY to Rs 6.4 crore on a high base, as it received a deferred tax credit of Rs 16.6 crore in Q1FY23. Profitability also takes a hit due to rising raw material prices, finance costs and employee expenses. Its revenue grows 8.7% YoY, led by the radio pharma and generics segments.

  • Network 18 Media & Investments plunges more than 5% as its net loss widens by 11.7x YoY to Rs 38.7 crore in Q1FY24 due to a 3.9x YoY surge in operational costs. However, its revenue rises 141.7% YoY to Rs 3,790.1 crore. The company shows up in a screener of stocks with high interest payments compared to earnings.

  • Bank of Maharashtra rises as its net profit increases by 95.2% YoY to Rs 882.1 crore in Q1FY24. Its net interest income also improves by 38.8% YoY on the back of growth in the treasury and corporate banking segments. The company appears in a screener of stocks with strong annual EPS growth.

  • Netweb Technologies India's Rs 631 crore IPO gets bids for 90.4X the available 88.6 lakh shares on offer on the third day of bidding. The retail investor quota gets bids for 19.2X of the available 44.9 lakh shares on offer.

  • Infosys, Coforge, United Spirits and Tanla Platforms' weekly average delivery volumes rise ahead of their Q1FY24 results tomorrow.

  • Asian Development Bank (ADB) maintains its forecast for India's economic growth at 6.4% in FY24 on the back of robust domestic demand. The bank predicts a further decline in inflation as energy and food costs decrease. ADB expects India's GDP to reach 6.7% in FY25.

  • TV18 Broadcast rises to a new 52-week high of Rs 45.2 as its net profit increases 31.7% YoY to Rs 44.3 crore in Q1FY24. Its revenue is up by 160.8% YoY. However, its EBITDA margin falls by 240 bps on the back of increased operational and marketing, distribution & promotional expenses. The company appears in a screener of stocks with increasing yearly and quarterly net profits.

  • ICICI Securities downgrades its rating on Just Dial to ‘Add’ from ‘Buy’ with a target price of Rs 870. This implies an upside of 8.5%. The brokerage believes the stock has a limited upside, given its recent uptrend. While acknowledging the stability of the company's core business, ICICI Securities expects delays in commercial launches of new initiatives.

  • Ramkrishna Forgings is rising as it commences commercial operations at its Jharkhand plant. This will enhance the company’s output by 23,800 tonnes per year, taking its total production capacity to 2,10,900 tonnes per year. The company shows up in a screener for stocks with high consistent returns over the past five years.

  • Rakesh Jhunjhunwala's portfolio cuts its stake in Prozone Intu Properties to below 1% in Q1FY24, compared to 2.1% held in Q4FY23.

  • HSBC initiates coverage on Titagarh Rail Systems with a ‘Buy’ rating and a target price of Rs 730. The brokerage believes that the Centre’s plan to increase the number of freight trains and order prospects from the metro segment will augur well for the firm.

  • CIE Automotive India rises to its all-time high of Rs 579.8 per share as its net profit surges 59.7% YoY to Rs 301.7 crore in Q1FY24. Its revenue also grows 4.7% YoY, aided by improvement in the India and Europe segments. Its EBIDTA margin expands 250 bps YoY, helped by a drop in raw materials prices. The company appears in a screener of stocks with consistently high returns over the past five years.

  • Adani Transmission rises as its smart meter contract value stands at Rs 3,700 crore in Q1FY24. Its energy sales grow by 7.6% YoY to 275.4 crore units on the back of expansion of operational distribution networks.

  • Rakesh Jhunjhunwala's portfolio sells a 4.8% stake in Metro Brands in Q1FY24. It now holds a 9.6% stake in the company.

  • Bikaji Foods International rises over 8% and touches its 52-week high as the company acquires a 49% stake amounting to Rs 5.1 crore in Bhujialalji.

  • Porinju Veliyath adds Kokuyo Camlin to his portfolio in Q1FY24, buys a 1% stake

  • B L Kashyap & Sons rises as it bags an order worth Rs 369 crore from DLF Home Developers. The order involves civil structure and waterproofing works for DLF's The Arbour project and is expected to be completed in 33 months. The company appears in a screener of stocks with strong momentum.

  • ICICI Lombard General Insurance is falling despite its net profit growing 11.8% YoY to Rs 390 crore in Q1FY24. Its gross direct premium income increases by 18.9% YoY, aided by improvement in premiums from the retail & corporate health and motor segments. It features in a screener of stocks near their 52-week highs with significant volumes.

  • Jio Financial Services is set to demerge from Reliance Industries on Thursday. The NSE and BSE will hold a special pre-open session for Reliance Industries to discover the share price of Jio Financial.

  • Media stocks like TV18 Broadcast, Network 18 Media & Investments, Zee Entertainment Enterprises, Navneet Education and Sun TV Network are rising in trade. All the constituents of the broader index, Nifty Media, are also trading in the green.

  • L&T Technology Services falls despite its net profit rising by 0.5% QoQ to Rs 311.1 crore in Q1FY24. Its revenue increases by 9.5% QoQ on the back of robust growth in the transportation segment. The company appears in a screener of stocks with improving quarterly revenue.

  • IndusInd Bank’s Q1FY24 net profit rises 32.5% YoY to Rs 2,123.6 crore, while its net interest income grows 18% YoY. The bank’s robust performance is driven by healthy growth in the retail banking and corporate/wholesale banking segments. Its asset quality also improves, with Gross and Net NPAs declining by 41 bps and 9 bps YoY respectively.

Riding High:

Largecap and midcap gainers today include Polycab India Ltd. (4,308.85, 4.38%), Punjab National Bank (64.15, 4.14%) and Patanjali Foods Ltd. (1,323.00, 3.95%).

Downers:

Largecap and midcap losers today include ICICI Prudential Life Insurance Company Ltd. (559.45, -2.66%), Endurance Technologies Ltd. (1,661.05, -1.97%) and Tube Investments of India Ltd. (3,192.00, -1.82%).

Movers and Shakers

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

Top high volume gainers on BSE included Tata Teleservices (Maharashtra) Ltd. (80.95, 10.44%), TV18 Broadcast Ltd. (42.90, 9.16%) and Finolex Cables Ltd. (977.65, 9.03%).

Top high volume losers on BSE were Network 18 Media & Investments Ltd. (59.50, -7.54%), Jubilant Pharmova Ltd. (386.85, -2.83%) and CIE Automotive India Ltd. (517.85, -2.36%).

KEI Industries Ltd. (2,563.10, 5.07%) was trading at 14.6 times of weekly average. Bikaji Foods International Ltd. (448.65, 5.24%) and KRBL Ltd. (373.60, 5.18%) were trading with volumes 9.8 and 6.0 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

46 stocks made 52-week highs,

Stocks touching their year highs included - Ashok Leyland Ltd. (173.20, -0.14%), Aurobindo Pharma Ltd. (751.10, -0.27%) and Zydus Lifesciences Ltd. (607.50, 0.91%).

9 stocks climbed above their 200 day SMA including Tata Teleservices (Maharashtra) Ltd. (80.95, 10.44%) and Rain Industries Ltd. (167.65, 2.73%). 12 stocks slipped below their 200 SMA including Network 18 Media & Investments Ltd. (59.50, -7.54%) and MMTC Ltd. (33.45, -1.33%).

 
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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)

 
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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.

 
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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.

 
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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%).