InterGlobe Aviation Ltd.    
18 Apr 2019
DVM stock Interglobe Aviation soars in share price

Airline stock Interglobe Aviation (which is in 26 stock screeners) entered Trendlyne's DVM Screeners (subscription required) on April 2 at Rs. 1,420. Since then, share price has soared hitting new highs, and has risen over 14% in the last week alone.

The company has seen its fortunes in stock markets rise even as Jet Airways has sunk - Jet Airways still doesn't have a path to rescue despite talks with multiple airline companies and lenders. One caution for airline stocks however is rising crude oil prices, which has crossed over $70 per barrel in recent days. 

InterGlobe Aviation Ltd. has gained 81.75% in the last 6 Months
Trendlyne Marketwatch    
18 Apr 2019
LIVE Markets Today: RIL jumps on Aramco buzz

Markets are up in morning trade and breadth is horizontal. Of the 474 stocks traded today, 226 were in the positive territory and 191 were negative.

2:40 pm: RIL shares are up nearly 3% after Reuters reports that Saudi Aramco, the world's biggest oil producer, is in talks to buy a stake of at least 20% in the company's refining and petrochemicals businesses.

1:40 pm: Star Cement, Minda Industries among top gainers in share price today. Both stocks are also seeing substantial traded volumes. 

12:44 pm: Wipro is rising today after March quarter results, and announcement of buyback. The Rs. 10,500 crore buyback is for 32.31 crore shares (5.35 percent equity) at a price of Rs 325 per share. The share price is currently at Rs. 285.

Riding High:

Largecap and midcap gainers today include Max Financial Services Ltd. (461.10 6.24%), InterGlobe Aviation Ltd. (1646.80 4.25%) and Tata Motors Limited (DVR) (114.85 3.33%).


Largecap and midcap losers today include Crisil Ltd. (1574.00 -2.84%), Oberoi Realty Ltd. (559.45 -2.70%) and Graphite India Ltd. (459.15 -2.54%).

BSE 500: highs, lows and moving averages

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

Stocks touching their year highs included - ICICI Bank Ltd. (409.20 0.31%), InterGlobe Aviation Ltd. (1646.80 4.25%) and Spicejet Ltd. (147.85 11.42%).

Stock making new 52 weeks lows included - Reliance Communications Ltd. (2.40 -4.00%).

10 stocks climbed above their 200 day SMA including Star Cement Ltd. (105.75 5.75%) and Himatsingka Seide Ltd. (239.55 4.15%). 6 stocks slipped below their 200 SMA including Crisil Ltd. (1574.00 -2.84%) and Andhra Bank (28.75 0.00%).

Trendlyne Talk    
17 Apr 2019
NEW features: F&O screeners, and 12 year backtesting

We are constantly working to improve our products, and we have just launched some new features at the request of users. 

- A performance update: Despite volatile markets, our DVM screeners have been on the upswing. Four stocks were added in recent weeks to our Long Term Select screener, and all four have delivered positive returns. 

Feature updates:

- Now run backtests starting from 2007 to check returns on screeners! That's six more years added to backtesting. This brings the backtest period to 12 years

New Futures and Options Screeners:  We have added 24 Futures and Options parameters to our screener system! You can now build screeners combining multiple factors such as Open Interest change %, Volume Change and more. 

Happy investing!

Cholamandalam Investment and Finance (CIFC) rises in a beleaguered industry

By Suhani Adilabadkar

The NBFC party ended in August 2018. Strong demand, growing AUM and rising stock prices all came to a halt and the NBFC sector witnessed its ‘Minsky Moment’, the term coined during 1997 Asian Debt Crises. In layman terms, the phrase refers to the highly unsustainable growth of a bull market coming to an abrupt end.

In the Indian context, a lack of commitment to the most basic and fundamental financial principle, financing long term assets with long term debt, has triggered the IL&FS fallout and led to a shakeout of the entire financial system. The repercussions are still being felt and even after a 50 basis point cut handed out by RBI along with OMOs and Rupee Dollar swaps to restore liquidity, banks are still averse to pass on the benefit to the beleaguered NBFC sector.

As a result, higher borrowing costs, lower GDP growth and tighter liquidity conditions have turned the tide against the NBFC sector which had been growing at a CAGR of 20% over the past ten years.

Quick Takes:

  • Chola Finance (in 14 stock screeners) has maintained CAGR of 26% and 16% respectively for PAT and Revenue over the past five years.
  • CIFC stock has multiplied five times since 2014.
  • GNPA ratio declined to 2.7% in Q3 FY19 compared to 3.7% same period previous year in Q3 FY19.
  • CIFC’s diversification across products and geographies will fortify its business model enabling it to navigate through violent VUCA waters.
  • Operations spreads across 27 states with 79% of its presence across tier III & VI cities and towns through 891 branches.

Cholamandalam Investment And Finance Company

Some NBFCs may survive better than others - some have life jackets, some are trying to plug in loopholes in their survivor boats whereas the financially disciplined with strong management pedigree are breaking away from the pack and rising since February this year. The best among the resilient pack is Cholamandalam Investment And Finance Company (CIFC), part of the Murugappa Group.

CIFC commenced operations as an equipment financing company and over the years evolved as a comprehensive financial services provider offering vehicle finance, home loans, home equity loans, SME loans, investment advisory services and variety of other financial services.  CIFC is spread across 27 states with 79% of its presence across tier III & IV cities and towns through 891 branches boosting AUM of Rs. 500 bn as on 31st December 2018.

Chola finance rebooted itself in 2011 after terminating its joint venture with DBS Bank Singapore. The JV seeded in 2006 soured as DBS focussed on retail whereas Cholas wanted to move ahead with asset lending. Consequently, the Murugappas acquired DBS stake and infused Rs. 2500 mn, which sported an AUM of Rs. 13400 crore in FY 12.

Currently, the full-fledged NBFC has three main revenue originations, Vehicle Finance, Home Equity (LAP) and Home Loans.  Vehicle Finance is the major revenue generator contributing 75% of total revenues followed by Home Equity at 17% and Home Loans and other misc segments constituting 8-9%. 

Sailing Up The VUCA River

Chola Finance has gone through the volatile August-December period with an average revenue growth rate of 30% for the past three quarters. The December quarter was robust for the company, with Revenue and PAT rising 32% and 22% respectively and AUM growth of 29% at Rs.50,393 cr compared to Rs.39,005 cr in Q3 FY18. GNPA ratio declined to 2.7% in Q3 FY19 compared to 3.7% same period previous year. Provision coverage ratio improved to 45.2% during the quarter against 36.8% in Q3FY18. On the whole, CIFC has maintained CAGR of 26% and 16% respectively for PAT and Revenue over the past five years. No doubt the stock price has multiplied five times since 2014.

But with rising borrowing costs and slowing growth as predicted in the recent RBI policy, sailing up the VUCA river would be quite strenuous. The company however seems to be quite confident of its future growth strategy. As auto sector which contributes three fourths of its revenues moves in the slow lane, Chola has made its business model potentially resilient enough to counter a domestic slowdown.

Its Home equity division, which started ten years ago, has achieved a sizeable AUM of Rs. 11000 cr as on 31st December 2018 contributing 23% to total AUM. Home equity disbursements grew by 18% and PBT by 59% YoY. In addition to this, CIFC is remixing its vehicle strategy, moving towards fast growing high yield products such as LCVs, tractors, two-wheelers and three-wheeler substituting low yield HCVs which are degrowing since past few months.

This product mix change would not only improve revenues but also stabilize NIMs. Vehicle finance revenues have grown 33% YoY in the current slowdown scenario due to its wide product basket and vast geographic reach.  As per the recent December numbers, disbursement/portfolio mix has spread across the country with largest contribution by Eastern states of about 31%, followed by South at 29% and North and West at 21% and 20% respectively. Thus, Chola Finance’s diversification across products and geographies will fortify its business model enabling it to navigate through violent VUCA waters.

Coming to its funding profile, the company's Capital Adequacy Ratio stands at 17.80%, well above RBI stipulated 15% with Tier I of 13.1%. Moving on to tenacious cost of borrowings, CPs constitute just 10% of its borrowing mix with Bank borrowings contributing 39%. As per RBI’s latest diktat risk weights for NBFCs will be with respect to their rating thus benefiting strong players like Cholamandalam Finance to reduce their borrowing costs.

During third quarter, the NBFC maintained liquid cash of Rs. 4,000 - 5,000 cr to tide over liquidity crises indicating strong financial strength and superior management quality. Coupled with this, strong growth prospects and high asset quality, CIFC management is pretty confident as Mr. Arun Alagappan, Executive Director, CIFC clarified, “Definitively, what we are expecting is Home Equity business to grow by about 15%. We are looking at BS-VI which is coming in April 2020, we definitively see some buying. So that is why we are looking at pre-buying which will happen, so we are looking at over 20% growth in the business and that is why you can see 75% in the book anyway and the average growth will be about 20% for next year”.

Cholamandalam Investment & Finance Company Ltd. has gained 20.01% in the last 6 Months
Bata India Ltd.    
16 Apr 2019
DVM stock Bata India hits new year high

Bata India has been in Trendlyne's top DVM Screeners (subscribers get access as well as alerts) since March. The share price of the stock hit a year high today, even as the company plans additional presence in smaller cities. 

The company is among the stocks with the highest FII holdings in the Indian market, with 10.4% of stocks with FIIs. It has also seen holdings increasing among institutional and mutual fund players QoQ. 

The company's strong December performance, where net profits jumped over 51% YoY, is in line with management comments of increasing revenue from more upmarket offerings, helping the firm improve its margins. Management reports two significant factors driving growth - "premiumisation", and growth from tier3 and tier4 cities.

Bata India Ltd. is trading above it's 200 day SMA of 1089.28
16 Apr 2019
Vanguard Fund expands its investments in NCC, Bharat Financial, UPL

The investment company Vanguard Fund has upped its portfolio in India, increasing its stake so far in ten companies, including Zee Entertainment, NCC Limited, HDFC, Bharat Financial Inclusion, and others. The company's investments in India in the latest quarter approximate to around Rs. 30,900 crore. 

Trendlyne Marketwatch    
16 Apr 2019
Markets are up in morning trade, Jet Airways in free fall

Markets rise on early trading, up by 0.64%, and market breadth is holding steady. Of the 405 stocks traded today, 229 were on the uptrend, and 144 went down.

1:30 pm: Jet Airways stock is in free fall, as operations shut down and planes are grounded temporarily. 

12:30 pm: 34 lakh shares of PC Jeweller changed hands in a block deal. Share price is up on high volumes today. PC Jeweller is in the big insider buys last week screener.

Riding High:

Largecap and midcap gainers today include ICICI Bank Ltd. (403.40 2.75%), Indian Oil Corporation Ltd. (157.20 1.98%) and Motilal Oswal Financial Services Ltd. (720.80 1.87%).


Largecap and midcap losers today include Oberoi Realty Ltd. (584.45 -1.77%), Coromandel International Ltd. (439.35 -1.49%) and Godrej Properties Ltd. (941.95 -1.37%).

BSE 500: highs, lows and moving averages

7 stocks took off, crossing 52 week highs, while 1 stock were underachiever and hit their 52 week lows.

Stocks touching their year highs included - Gillette India Ltd. (7888.95 1.20%), Indraprastha Gas Ltd. (321.00 -0.31%) and Info Edge (India) Ltd. (1933.15 -0.10%).

Stock making new 52 weeks lows included - Reliance Communications Ltd. (2.50 -3.85%).

16 stocks climbed above their 200 day SMA including Motilal Oswal Financial Services Ltd. (720.80 1.87%) and Minda Industries Ltd. (358.35 1.83%). 4 stocks slipped below their 200 SMA including Tata Motors Limited (DVR) (111.00 -0.54%) and Tata Power Company Ltd. (71.60 0.35%).

Results Analyzer: Network18, others hit by lower operating profit margins

Six results came in today, with Network 18 and TV18 Broadcast getting the most significant coverage in the news.

Network 18 (which is in 12 stock screeners, including the low durability score screener) reported losses in both net profit YoY change and EBIDT, with operating profit margins declining significantly, falling over 74%. The company however, said that the previous quarters weren't comparable due to changes in business structure - Viacom18 Media Pvt Ltd and IndiaCast Media Distribution Pvt Ltd freshly became subsidies of the company with effect from March 2018, and TV18 Home Shopping Network Ltd and NW18 HSN Holdings Pic ceased to be subsidiaries from February 2018. 

TV18 also fell sharply on high volumes after the company reported a double digit decline in operating profit margins - despite revenue and net profit growth, margins fell by over 15% YoY, resulting in missed estimates for the firm. 

Network 18 Media & Investments Ltd. is trading below it's 30 day SMA of 34.92