Trendlyne Marketwatch    
26 Jun 2019, 03:45PM
Markets close higher, metal and power stocks gain

 Sensex and Nifty50 ended higher, up 0.4% and 0.43% respectively.  Market breadth is even. Of the 1030 stocks traded today on the Sensex, 473 were on the uptrend, and 454 went down. For all the day's updates, click here. Metal and power were the top gainers among indices today. 

Riding High:

Largecap and midcap gainers today includ e Emami Ltd. (316.15 8.46%), Tata Global Beverages Ltd. (272.60 5.33%) and SBI Life Insurance Company Ltd. (715.00 5.15%).

Downers:

Largecap and midcap losers today include PI Industries Ltd. (1144.90 -2.85%), Britannia Industries Ltd. (2729.00 -2.77%) and Bayer Cropscience Ltd. (3260.00 -2.72%).

Volume Shockers

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

Top high volume gainers on BSE included Allahabad Bank (47.55 12.28%), Dilip Buildcon Ltd. (445.00 11.25%) and Dhanuka Agritech Ltd. (412.00 7.99%).

Top high volume losers on BSE were Aster DM Healthcare Ltd. (122.90 -10.94%), Bombay Burmah Trading Corporation Ltd. (919.00 -4.06%) and Britannia Industries Ltd. (2729.00 -2.77%).

Cholamandalam Financial Holdings Ltd. (468.00 -1.90%) was trading at 27.0 times of weekly average. APL Apollo Tubes Ltd. (1523.60 -1.32%) and Century Plyboards (India) Ltd. (160.90 2.98%) were trading with volumes 19.2 and 8.7 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

16 stocks overperformed with 52 week highs, while 10 stocks were underachievers and hit their 52 week lows.

Stocks touching their year highs included - Abbott India Ltd. (8940.00 4.56%), Bajaj Finance Ltd. (3629.00 1.60%) and Container Corporation of India Ltd. (568.00 2.79%).

Stocks making new 52 weeks lows included - Bayer Cropscience Ltd. (3260.00 -2.72%) and Bombay Burmah Trading Corporation Ltd. (919.00 -4.06%).

21 stocks climbed above their 200 day SMA including Allahabad Bank (47.55 12.28%) and Suzlon Energy Ltd. (5.85 11.43%). 1 stock slipped below their 200 SMA including Mahindra Lifespace Developers Ltd. (396.00 -1.00%).

Tube Investments of India Ltd.    
26 Jun 2019, 01:19PM
396.70
-0.80%
Shifting focus to exports, Tube Investments draws investor interest

By Suhani Adilabadkar

Tube Investments of India (which is in 16 stock screeners) a pioneer in the bicycle industry, was recreated in 2017 through a restructuring exercise undertaken by Murugappa group. The demerger of TI Financial Holdings Limited created Tube Investments Of India (TII) vested with manufacturing business while TI Financial Holdings retained financial services. Though shareholder value was unlocked for investors, the investor journey started all over again for Tube Investments stock with re-listing on 2nd November 2017. 

Quick Takes:

  • Revenue and EBDITA grew 9% and 31% YoY, while PAT jumped 27% YoY in March FY19.
  • Operating margins improved from a low of 7.58% in March quarter FY18 to 9% in Q4 FY19, hitting a double digit peak of 10% in December FY19.
  • TII’s three business verticals, Engineering and Metals Formed Products grew 5% and 17% YoY respectively whereas the Cycles division reported loss of Rs. 6 crore.
  • TII has launched new businesses, TI Macho TMT bars and TI Truck Body Works (TBW) diversifying its revenue stream.
  • The company has planned a capex of Rs. 275-300 crore for FY19-20. 

Tube Investments of India – BSA Champ

TII’s history dates back to the birth of TI Cycles of India (TICI) in collaboration with TI of UK right after Indian independence. The joint venture forayed into tube and chain manufacturing as a backward integration measure forming Tube Products of India (TPI) and TI Diamond Chain in 1955.

TPI, TI Diamond and TI Cycles were merged to form the present entity, which is the second largest manufacturer and marketer of cycle and accessories in India. The maker of BSA, Hercules, Ladybird brands along with premium international brands Cannondale, Bianchi and Ridley, TII has a 23% market share in domestic retail bicycle industry. The Cycles and Accessories division contributed 21% in FY19 and is currently in the ‘no-growth zone’ overtaken by other two divisions, Engineering and Metal Formed Products.

Engineering division manufactures cold rolled steel strips and precision steel tubes catering to the needs of the automotive, boiler, bicycle, general engineering and process industries. Largely dependent on passenger, commercial and two-wheeler vehicle industry, Engineering division contributes nearly 50% of the total revenue basket. Next in line, Metal Formed Products division manufactures Auto Chains and Sprockets for Two wheelers, Fine Blanked parts and door frames for Passenger cars and cold rolled formed sections for railway wagons and passenger coaches constituting 28% of the total revenue stream in FY19.

March Quarter FY19

March quarter numbers reported a strong yearly performance while there was a decline on the quarterly front. Revenue grew 9% YoY from Rs. 1233 crore to Rs. 1347 crore. Higher operational efficiency for the firm has led to EBDITA rising 31% YoY, reported at Rs. 123 crore compared to Rs. 94 crore in the corresponding quarter previous year.

EBDITA margin also expanded handsomely by 152 bps, with the margin coming out at 9.1% for Q4 FY19. Consequently, PAT jumped 27% YoY from Rs. 45 crore in Q4 FY18 to Rs. 57 crore in March FY19. Revenue mix was driven by 17% YoY growth from Metal Formed Products followed by 5% mild jump in Engineering revenues and Cycles and Accessories division reporting a loss of Rs. 6 crore against Rs. 20 crore loss the same period last year.

Even with the quarterly picture somewhat disappointing with Revenue and EBDITA reporting de-growth of 8% and 16% QoQ respectively, the stock looks stable and has in-fact gained 73% from its 52-week low last year. 

In a Stabilizing Trajectory

TII stock has been up over the past six months on account of various measures adopted by the company with respect to Revenue growth, profitability, Return on Capital Employed and Free cash flows. Over the past four quarters Revenue growth has been strong with impressive operating margins which improved from a low of 7.58% in March quarter FY18 to 9% in Q4 FY19, hitting double digit peak of 10% in December FY19.

This improvement has been on account of operational efficiency measures such as fixed cost reduction, improved performance across logistics, power cost savings and broad basing steel mix by sourcing Chinese imports. Thus, even with the backdrop of a slowing auto industry, investors have been bullish about TII, especially with strong competitors like Sundram Fasteners and Motherson Sumi bucking the trend and currently getting closer to their 52-week lows.

It can’t be just operational efficiency working out for TII. Growth is the long-term mantra for long term investor interest and the company is working towards it. It’s not the Cycle business that is creating the magic - the Cycle and Accessories segment is in fact reporting slowing growth and losses over the past few years which the management intends to reverse by improving logistical efficiencies, sourcing, inventories and developing new innovative designs.  Even though the Cycle business is now a low growth business for TII, the company is looking to improve its current EBIT level of 1.5% to 5% in FY20. 

Moving on to faster growth segments, the Engineering division has grown its Net Sales at CAGR of 24% and PBIT at 32%, and Metal Formed Products division is moving at 14% and 18% respectively over the past two years. But the hindrance remains, auto dependency for both divisions stands at around 70%. With respect to Engineering business, to counter domestic auto slow down, exports have become a fresh focus, which have grown 31% YoY constituting 15% of total Engineering revenues.

Another major growth driver has been the large diameter welded tubes in the non-auto segment, which is exhibiting significant export growth even after US anti-dumping duty was imposed as Europe and Asia filled the growth void. With exports contributing 20% and rest domestic sales, large diameter tubes have been growing strongly, with the highest growth in the December quarter, showing 23% YoY volume growth and 50% YoY in value terms.

With respect to Engineering exports, TII MD, Mr. Vellayan Subbiah further added, “In export we are developing new products so basically the way it works as you know we do front fork exports as well, but our non-front fork also we have started off developing new products with our European OEM partners, and some of these new products are going into pilot this year. We do believe that those products will give us a very good boost for growth in the 19-20 and 20-21 years in terms of export volumes from the engineering side”. 

Moving on to Metal Formed Products division which has reported the highest quarterly growth of 17% YoY is driven by Auto Chains, Doorframes, Railways products, Industrial Chains and Fine-Blanking. Though the auto chain segment is facing uncertainty with respect to auto slowdown, the company had two customer wins for Industrial chains on the export side during the quarter, witnessing strong opportunities in Europe,

The Railways business is being extended to MCF in Bareli and is expecting good growth next year, fine blanking and in particular door frames have performed well as TII’s largest customer, Hyundai production has not slowed due to higher exports.

Lastly, coming to its subsidiary, Shanti Gears currently in 10% growth zone contributing 4% to TII’s consolidated revenues in FY19 and is expected to move to a trajectory of 15-20% range for  revenue and the profit growth.

 TII is also entering truck body fabrication business by launching Truck Body Works (TBW) and forayed into construction business by launching TI Macho TMT Bars in 2018. That's a lot of new verticals, and execution will be key for the company to show solid returns. The third new business, relating to optical side is also coming up though finer details are yet to be disclosed. Clarifying on new business strategy, Mr. Vellayan Subbiah said, “So in-years they will provide us less but in the out years they will start helping us bridge the revenue gap to allow us to hit that 17% number that cannot come from the core businesses. So, in our estimates we should be able to hit at least a 13% to 14% number from the existing business mix and then satisfy the rest from new business in the in-years”.  With a capex plan of Rs. 275-300 crore in FY19-20, the company is hoping that its stabilizing phase will quickly transform into a strong growth zone.  

Promoters pledge reduced to 0.08% of holdings in Mar 2019 qtr.
The Baseline    
26 Jun 2019, 12:28PM
Red Flag Screener: Companies whose debt has been downgraded

The Red Flag Screener tracking companies whose debt has received downgrades, include Canara Bank, Nandan Denim, Reliance Capital, and others. These companies have notified the exchanges that they received a downgrade on their debt from various credit rating agencies. This screener is live and updates as announcements come in. These revisions have come in within the past twelve months, and in some cases such as DHFL, involved sharp rating downgrades. 

Larsen & Toubro Ltd.    
26 Jun 2019, 11:08AM
1557.00
1.43%
In the battle between Nalanda and L&T, L&T won

The Singapore-based Nalanda fund (which holds 23 publicly listed investments in India, post its Mindtree exit) had opposed the L&T takeover of Mindtree, saying that the price offered by the engineering conglomerate for shares was unfair. However, now Nalanda has exited the company, selling its entire 10.6% stake to L&T in the open offer, after SEBI reportedly wrote to Nalanda in response to a complaint. 

Some shareholders had complained that Nalanda founder Pulok Prasad was trying to convince minority shareholders to not sell to L&T, a violation of the law if Nalanda was doing this without a counter offer to L&T. Nalanda backed down at SEBI's letter and sold off its stake.

At the open offer price, Nalanda Capital makes a 4x return on its Mindtree shares (it has held Mindtree since Q3 2015). The exit of Nalanda alongside the open offer has already caused L&T to cross over 51% stake in the company, and the majority shareholder is now flexing its muscles, with rumors that it is out to replace Mindtree's CEO in favor of someone more focused on aggressive growth. 

Larsen & Toubro Ltd. has gained 26.48% in the last 1 Year
Trendlyne Marketwatch    
26 Jun 2019, 09:45AM
LIVE: Markets up, Indiamart Intermesh IPO subscribed 3.22X

Markets are up in trade and breadth is neutral to positive.  Sensex and Nifty50 ended higher, up 0.35% and 0.37% respectively.  

  • Torrent Power has hit a fresh year high today following its nod from the GERC for power procurement, between the company's UNOSUGEN power plant and its Distribution Business for the cities of Ahmedabad, Gandhinagar and Surat.
  • The Rs 475 crore IPO by IndiaMART InterMESH got fully subscribed on Day 2 and saw subscription of 3.22 times till 2 pm in the final bidding stages today. 
  • Earnings call of Shree Pushkar Chemicals.
  • Britannia says reports of its Managing Director resigning are inaccurate. Share price of the FMCG company is trending lower. 
  • Brickwork Ratings has revised Reliance Capital's long-term debt rating to BBB with negative implications.
  • Resignation of Compliance Officer at Kwality Pharmaceuticals and Jyoti Structures
  • VGuard and Torrent Power are among stocks hitting new year highs.
  • Dewan Housing Finance (DHFL) falls sharply in share price after defaulting for the second time on commercial paper debt. The company said it made a proportionate payment of 40 percent - Rs.150 crore payment towards maturity of commercial papers of aggregate value of Rs 375 crore
     
Riding High:

Largecap and midcap gainers today include SBI Life Insurance Company Ltd. (707.50 4.04%), Emami Ltd. (301.20 3.33%) and NTPC Ltd. (141.70 2.50%).

Downers:

Largecap and midcap losers today include Edelweiss Financial Services Ltd. (164.00 -2.00%), Ajanta Pharma Ltd. (960.15 -1.40%) and Bharat Petroleum Corporation Ltd. (388.10 -1.10%).

BSE 500: highs, lows and moving averages

5 stocks made 52 week highs, while 4 stocks were underachievers and hit their 52 week lows.

Stocks touching their year highs included - Power Finance Corporation Ltd. (136.15 1.26%), Power Grid Corporation of India Ltd. (205.35 1.91%) and REC Ltd. (162.50 1.12%).

Stocks making new 52 weeks lows included - Central Bank of India (20.40 0.00%) and La Opala RG Ltd. (182.90 -0.14%).

8 stocks climbed above their 200 day SMA including Supreme Industries Ltd. (1069.10 1.63%) and Engineers India Ltd. (120.15 1.52%). 2 stocks slipped below their 200 SMA including Birla Corporation Ltd. (575.00 0.15%) and Vardhman Textiles Ltd. (1064.95 0.65%).

Photo by Appaiah

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Trendlyne Marketwatch    
25 Jun 2019, 03:45PM
Markets break losing streak, close higher

Markets closed up today with a 0.80% gain in the Sensex, and 0.83% higher for the Nifty50. The market breadth was tilted in favour of buyers. About 911 stocks gained and 834 shares declined on National Stock Exchange. For updates that happened through the day, see here

Riding High:

Largecap and midcap gainers today include Torrent Power Ltd. (271.70 11.81%), Emami Ltd. (290.35 7.52%) and Oberoi Realty Ltd. (565.70 4.37%).

Downers:

Largecap and midcap losers today include ICICI Lombard General Insurance Company Ltd. (1102.00 -6.31%), SBI Life Insurance Company Ltd. (674.35 -5.06%) and Quess Corp Ltd. (560.45 -4.85%).

Volume Shockers

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

Top high volume gainers on BSE included Torrent Power Ltd. (271.70 11.81%), TVS Srichakra Ltd. (1915.60 5.54%) and JK Tyre & Industries Ltd. (79.80 5.00%).

Top high volume losers on BSE were ICICI Lombard General Insurance Company Ltd. (1102.00 -6.31%), Shilpa Medicare Ltd. (335.65 -3.55%) and Syngene International Ltd. (325.55 -1.60%).

Hindustan Aeronautics Ltd. (720.30 2.75%) was trading at 60.9 times of weekly average. Jagran Prakashan Ltd. (105.90 0.86%) and DB Corp Ltd. (195.15 0.18%) were trading with volumes 26.5 and 19.5 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

6 stocks took off, crossing 52 week highs, while 17 stocks hit their 52 week lows.

Stocks touching their year highs included - DCB Bank Ltd. (240.35 4.64%), Godrej Properties Ltd. (982.20 2.31%) and REC Ltd. (160.90 2.81%).

Stocks making new 52 weeks lows included - Bharat Forge Ltd. (435.85 0.20%) and Cadila Healthcare Ltd. (230.40 2.22%).

10 stocks climbed above their 200 day SMA including Torrent Power Ltd. (271.70 11.81%) and India Cements Ltd. (104.95 10.13%). 8 stocks slipped below their 200 SMA including Equitas Holdings Ltd. (119.95 -3.42%) and Vardhman Textiles Ltd. (1062.85 -0.70%).

The Baseline    
25 Jun 2019, 02:41PM
Screener: Stocks seeing large insider/SAST sells

The stock screener that tracks insider/SAST sells looks at companies that saw sells by promoters and other insiders last week greater than 1% of total shares. This screener is a live one that updates in realtime as trades are reported to the exchanges. Suprajit Engineering tops the list after the company's promoter-directors disposed a total of 38% of total shares via inter-se transfers. Piramal Enterprises has sold nearly 10% of Shriram Transport Finance in the market. Similarly, Sobha sold Sobha - promoters disposed of a significant stake at real-estate firm Sobha

Trendlyne Marketwatch    
25 Jun 2019, 09:45AM
LIVE: CEO seat shaky at Mindtree
Riding High:

Largecap and midcap gainers today include Oberoi Realty Ltd. (554.80 2.36%), Torrent Power Ltd. (247.85 2.00%) and Emami Ltd. (274.80 1.76%).

Downers:

Largecap and midcap losers today include SBI Life Insurance Company Ltd. (682.00 -3.98%), Motherson Sumi Systems Ltd. (116.35 -3.88%) and ICICI Lombard General Insurance Company Ltd. (1149.00 -2.32%).

BSE 500: highs, lows and moving averages

1 stock made 52 week highs, while 11 stocks hit their 52 week lows.

Stock touching their year highs included - Trent Ltd. (431.65 2.24%).

Stocks making new 52 weeks lows included - Cadila Healthcare Ltd. (226.35 0.42%) and eClerx Services Ltd. (763.90 -2.40%).

5 stocks climbed above their 200 day SMA including Ujjivan Financial Services Ltd. (293.85 2.39%) and Cummins India Ltd. (761.35 1.24%). 7 stocks slipped below their 200 SMA including Welspun Corp Ltd. (137.60 -1.61%) and Parag Milk Foods Ltd. (244.15 -1.15%).

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The Baseline    
24 Jun 2019
Screener: Stocks with consistent share price growth over 5 yrs, affordable PE

The stock market is volatile, as investors find out sooner or later, and even the best stocks weather downturns over earnings uncertainty, economic growth impacts, rising commodity prices, and so on. However, there are stocks that perform consistently in the market, and the consistent stocks screener (subscription, but screenshot above) attempts to identify stocks that have shown share price growth over the past 5 years, with growth % increasing in the last year and last two years. 

Among the stocks qualifying in this screener are Permanent Magnets, Saksoft and others. Across the market, only 42 stocks qualify for this screener strategy.