1778.00
-0.10%
Larsen & Toubro Infotech (LTI) delivers eighth straight quarter of YoY growth, Rallis India and 3i Infotech stumble

Midsize tech firm Larsen & Toubro Infotech (which is in 18 stock screeners) delivered a strong Q3 performance today, delivering double digit growth in net profits and revenues YoY (sequential profit showed a decline). The company also grew its operating profit margins at 20.5% YoY. The company has logged the eighth straight quarter of growth, as IT midcaps deliver strong performances even as the bigwigs see a rockier economic environment. 

NIIT Tech and Atul Limited are also seeing their share prices jump on Q3 results. 3i Infotech and Rallis India on the other hand, saw weak Q3 results, with Rallis falling on high volumes on the news.For the full result dashboard, click here

 

Rallis India Ltd.    
18 Jan 2019
167.25
-0.56%
Rallis India disappoints in Q3 results, net profit falls

Agrochemical company Rallis India saw its last year high in Jan 2018, a while ago. And with disappointing Q3 results, its share price looks unlikely to see an immediate recovery, with the company seeing losses YoY for the quarter, with profits falling by over 44.8%. The company reported some revenue growth of 6.97% for the quarter, missing estimates and seeing a sharp decline in its operating profit margin, which fell from 18.8% to 6.6% sequentially. The year on year decline in the margin was over 31%. 

Rallis (which is in 11 stock screeners)  had brokerages mostly bullish about the company after its September results. But declining farm income and rural distress has had an impact on the firm's bottomline, 

ICICI Securities Limited downgraded Rallis India Ltd. to Hold with a price target of 180.0 on 21 Jan, 2019.
Trendlyne Marketwatch    
18 Jan 2019
Opening bell: Markets lower in morning trade, Sun Pharma falls sharply

Markets are lower in morning trade, and breadth is neutral. Of the 392 stocks traded today, 189 were gainers and 165 were losers. Sun Pharmaceutical Industries is currently trading near a six year low after more whistleblower material landed with SEBI, which charged Sun Pharma promoters with collusion and an illegal relationship with Aditya Medisales. Some of the material has been available to investors since yesterday. 

Riding High:

Largecap and midcap gainers today include Gujarat State Petronet Ltd. (182.05 2.42%), L&T Technology Services Ltd. (1717.15 1.40%) and Biocon Ltd. (665.80 1.24%).

Downers:

Largecap and midcap losers today include Sun Pharmaceutical Industries Ltd. (386.55 -9.38%), Au Small Finance Bank Ltd. (631.00 -3.67%) and Motilal Oswal Financial Services Ltd. (662.15 -2.88%).

BSE 500: highs, lows and moving averages

4 stocks hit their 52 week lows.

Stocks making new 52 weeks lows included - Force Motors Ltd. (1574.65 -0.45%) and Nilkamal Ltd. (1363.90 -0.12%).

34 stocks climbed above their 200 day SMA including Essel Propack Ltd. (112.80 2.27%) and GHCL Ltd. (259.20 1.93%). 25 stocks slipped below their 200 SMA including Au Small Finance Bank Ltd. (631.00 -3.67%) and IDBI Bank Ltd. (60.00 -1.15%).

5Paisa Capital Ltd.    
17 Jan 2019
254.95
-1.73%
Results Screener: DCB Bank, 5Paisa Capital among companies seeing rising operating profit margins

The initial few results for the quarter brewed anxiety among investors, as early results showed declining operating margins in multiple companies. Recent results however, suggest a mixed to positive performance. The screener tracking companies with rising operating profit margins in ongoing results show 12 companies reporting rising operating profit margins in the past week, including DCB Bank,Trident, Phillips Carbon Black, and 5Paisa Capital.  The screener requires subscription but screenshot is above. 

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Number of FIIs/FPIs holding stock fell by 7 to 26 in Dec 2018 qtr.
Federal Bank Ltd.    
17 Jan 2019
89.65
1.07%
Federal Bank results beat estimates but margins hit, Motilal Oswal has a tough Q3

Federal Bank(which is in 13 stock screeners) was one of several companies that released results today, and while it beat estimates with net profit rising 28.3% YoY and revenues up 18% YoY, the bank's operating profit margin took a hit, falling 7.8% YoY. 

Provisions climbed 17% for the bank, Asset quality was stable with a slight rise. Gross bad loans as a percentage of total loans rose to 3.14% at the end of December, compared to 3.11% in the previous quarter, and 2.52 % a year earlier. On the brokerage side of financial markets, Motilal Oswal took a hit in its performance, with declining net profits and revenues - it fell 71.8% and 11.1% respectively, in a significant ouch for its investors. For the full results dashboard click here

Federal Bank Ltd. has an average target of 107.00 from 15 brokers.
The Baseline    
17 Jan 2019
Screener: Stocks that benefit from lower crude oil prices

As Brent oil prices have fallen from the sharp highs of late 2018, many companies in india breathed a sigh of relief. However, the impact of high oil prices is disproportionate across Industries, and in the Indian stock market. Some sectors are disproportionately affected: this screener tracks stocks in these sectors.  Plastics, Tyre and Textile companies for example, have significant crude oil-linked companies, and struggle with margins when crude oil prices soar. Similarly, Airlines, Auto and OMCs, as well as Transport and Logistics companies, benefit from lower oil prices, and airline companies see outright margin destruction during high oil price periods.  

Lower oil prices are not always good news. Indian exporters exporting to gulf countries for example, are impacted negatively when oil prices fall, as these countries are hit with lower revenues. Oil manufacturing countries also invest in the Indian stock markets, and falling oil prices impact FII inflows. 

Trendlyne Marketwatch    
17 Jan 2019
Opening bell: markets are up in morning trade, VIP Industries gains on buy call

Markets are up in morning trade, and breadth is balanced. Of the 431 stocks traded today, 218 were on the uptrend, and 167 went down. VIP Industries has jumped on Ambit Capital's buy target on the company. The target price was set at Rs 653.

Riding High:

Largecap and midcap gainers today include Rajesh Exports Ltd. (611.95 3.63%), Graphite India Ltd. (767.60 1.93%) and Indiabulls Housing Finance Ltd. (845.05 1.86%).

Downers:

Largecap and midcap losers today include Motilal Oswal Financial Services Ltd. (643.45 -5.71%), Godrej Properties Ltd. (725.50 -1.49%) and InterGlobe Aviation Ltd. (1121.50 -1.32%).

BSE 500: highs, lows and moving averages

1 stock made 52 week highs,

Stock touching their year highs included - Apollo Hospitals Enterprise Ltd. (1349.90 0.17%).

35 stocks climbed above their 200 day SMA including ITI Ltd. (116.15 3.89%) and GE T&D India Ltd. (319.95 1.72%). 18 stocks slipped below their 200 SMA including Exide Industries Ltd. (250.50 -0.85%) and Indraprastha Gas Ltd. (272.40 -0.84%).

Trendlyne Marketwatch    
16 Jan 2019
The Closer: Markets end day flat, Phillips Carbon Black gains on strong results

It was a flat end to the day for markets, and breadth is holding steady. Of the 1177 stocks traded today, 505 were in the positive territory and 572 were negative. Carbon company Phillips Carbon Black jumped today in share price after strong Q3 results. DCB Bank and HT Media, on the other hand, fell on weak performances. 

Riding High:

Largecap and midcap gainers today include Graphite India Ltd. (752.80 8.19%), Gujarat State Petronet Ltd. (178.20 4.92%) and InterGlobe Aviation Ltd. (1133.90 4.70%).

Downers:

Largecap and midcap losers today include Aditya Birla Fashion and Retail Ltd. (200.70 -4.29%), Cummins India Ltd. (841.55 -4.12%) and Indiabulls Ventures Ltd. (379.75 -2.40%).

Movers and Shakers

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

Top high volume gainers on BSE included ITI Ltd. (112.70 19.26%), Lux Industries Ltd. (1324.25 8.53%) and Graphite India Ltd. (752.80 8.19%).

Top high volume losers on BSE were Jet Airways (India) Ltd. (270.30 -7.97%), Engineers India Ltd. (122.40 -3.01%) and ICICI Securities Ltd. (253.80 -2.98%).

Eveready Industries India Ltd. (225.45 -1.25%) was trading at 42.5 times of weekly average. Coffee Day Enterprises Ltd. (289.65 2.24%) and Godrej Agrovet Ltd. (509.75 3.02%) were trading with volumes 20.0 and 17.8 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

5 stocks hit their 52 week highs, while 1 stock tanked below their 52 week lows.

Stocks touching their year highs included - Aarti Industries Ltd. (1539.15 -1.69%), Apollo Hospitals Enterprise Ltd. (1348.30 1.44%) and Info Edge (India) Ltd. (1667.75 -0.70%).

Stock making new 52 weeks lows included - Sun Pharma Advanced Research Company Ltd. (178.15 -2.54%).

36 stocks climbed above their 200 day SMA including ITI Ltd. (112.70 19.26%) and InterGlobe Aviation Ltd. (1133.90 4.70%). 17 stocks slipped below their 200 SMA including Great Eastern Shipping Company Ltd. (303.80 -3.85%) and Sobha Ltd. (460.30 -3.09%).

Aarti Industries Ltd.    
16 Jan 2019
1549.90
-1.28%
The right chemistry for growth: Aarti Industries ramps up expansion plans

By Suhani Adilabadkar

While the Benzene formula is a tough one for us ordinary adults going about our lives, the widespread use of this chemical makes it among the top 20 in the world. This colourless, volatile, aromatic liquid greases the functioning of several sectors of the economy. It is used intensively in printing, tyre manufacturing, as an industrial solvent, fuel and for manufacturing various chemical and plastic products.

For Aarti Industries (in 13 stock screeners), Benzene derivatives is its core competency. With its PAT growing more than twofold over the past five years and the Chinese chemical speciality sector on the backfoot, the company is at an inflection point with diversification into Toluene value chain and its pharmaceutical segment is the next revenue growth driver.

Quick Takes

  • Aarti Industries is the largest benzene derivatives producer in the country and also a leading manufacturer globally with its global market share appromixating between 25-40% in various categories. The company was a multi-bagger stock in 2016-18,
  • The quarterly growth has been strong for the September quarter with PAT reported at Rs. 123 cr rising 1.5 times or 57% YoY. This has been Aarti Industries best performance since inception with all three business segments.
  • Growth guidance of 12-15% for volume and 30% for PAT for the current year topping it up with capex of Rs. 1000 for FY19 and FY20.
  • Highly diversified product portfolio as no customer or product accounts for more than 8% of total revenues.
  • The Indian pharmaceutical industry has been uneasy over its high dependence on Chinese APIs and intermediates. This presents a growth opportunity for players like Aarti Industries.

Building financial strength with the right chemistry?

Aarti Industries has traversed across the entire midcap mania of 2018 with resilience and robust quarterly numbers. It is one of the few midcap stocks to sustain its growth momentum of over the past five years with the scrip more than doubling since Jan 2016 to its current Rs.1400 levels.
The CAGR for PAT stands at 19% with Operating Profits rising twofold over the past five years. The quarterly growth has been nothing less than impressive for the September quarter with PAT reported at Rs. 123 cr rising 1.5 times or 57 % YoY.
Contribution by high value products, strong volume growth and favourable currency movement aided robust numbers with revenues at Rs. 1300 cr rising 46% YoY and 20% sequentially. Operating Profit jumped 51% YoY with margin expansion of 58 basis points
mainly driven by geographically diversified business model. The operating profit margin came out at 18.6% and net profit margin moved north by 62 basis points to 9.46% in the September quarter FY19.
This has been Aarti Industries best performance since inception with all three segments, Specialty Chemicals, Pharmaceuticals and Home &Personal Care gaining. The specialty chemical segment contributes 80% of its total revenues and grew 10% in volumes with a revenue expansion of 50% YoY. Pharmaceuticals, driven by higher operating leverage, followed with 40% revenue growth and EBIT expansion of 53% YoY. Home and Personal Care segment, time-lined to be demerged by the end of FY19, reported 13%
revenue growth with EBIT impacted by higher input costs and change in product mix.
Though Aarti Industries seem to be on sturdy growth wheels,  factors such as currency market and crude volatility might be concerns in the near term.

Long Term Growth Bonding
Rupee depreciation has been a boon for Aarti Industries' export revenues . The company manages crude volatility  through its formula-based pricing model, passing on raw material (benzene) variations to customers leading to stable EBDITA margins. Nevertheless, apart from the raw material pricing model, the company has been following its diversified or highly
de-risked business model both geographically and with respect to product portfolio stabilizing its revenue stream and buffeting its bottom-line.

Revenue source is well spread across the US and UK contributing 26% and 25% respectively, China and Japan 10% each and
Rest Of the World, 29%. No customer or product accounts for more than 8% of total revenues.

Aarti Industries is the largest benzene derivatives producer in the country and also a leading manufacturer globally with its global market share ranging between 25-40%. The companyhas emerged as the only integrated global scale manufacturer
of benzene derivatives, boosting higher margins for its varied co-products and processes such as ‘Chlorination’, where it stands as the third largest player along with ‘Nitration’ and ‘Ammonolysis’ with fourth and second ranking globally.

Aarti Industries has now diversified beyond benzene and forayed into Toluene value chain commissioning its Nitro Toluene
facility at Jhagadia and entering ethylene-based chemistry in FY16-17 with an investment of Rs. 110 cr. With the Jhagadia facility already at 50% utilization, the company expects to achieve peak levels in the coming years with estimated revenue expectation of Rs. 350-400 cr per annum.
Specialty Chemical division received a booster shot with Rs. 4000 cr, 10 year herbicide intermediate contract and topping it up with another, Rs. 10,000 cr, 20 year contract for a high value speciality chemical intermediate during FY 17-18.

With Chinese companies seeing a rising cost structure and stringent pollution norms, global firms are diversifying their raw material
dependence and India seems to be the favoured partner for new lucrative deals. Even global Pharmaceutical companies share similar sentiments looking for alternative sourcing arrangements.

In addition to that Indian pharmaceutical industry has been uneasy over its high dependence on Chinese APIs and intermediates. This presents a growth opportunity for players like Aarti Industries with its 45 commercial APIs, 2 USFDA-approved facilities, andbackward integrated API facilities.

The company has earmarked Rs. 300 crore of capex exclusively for pharmaceuticals over the next three years. The company management has given a robust growth guidance, 12-15% for volume and 30% for PAT growth for the current year topping it up with capex of Rs. 1000 for FY19 and FY20. 

Aarti Industries Ltd. has gained 38.39% in the last 1 Year
Biocon Ltd.    
16 Jan 2019
671.50
1.28%
Screener: Companies with upcoming results, seeing positive shifts in share price

As results come in, some stocks are seeing positive share price shifts in the lead up to their result announcement. This  upcoming results stock screener identifies those stocks that have seen their share price rise in the leadup to results announcement. These include pharma stocks such as Biocon and Indoco Remedies as well as media companies like DB Corp, and tech firms like Wipro

Number of FIIs/FPIs holding stock rose by 6 to 270 in Dec 2018 qtr.