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The Baseline created a screener Relative outperformers vs Nifty50, …

13 Sep 2021, 12:50AM

Relative outperformers vs Nifty50, with brokerage buy calls and target price upgrades

Stocks that outperformed the Nifty50 in the past one month, with brokerage buy calls and target price upgrades

The Baseline

12 Sep 2021, 10:11PM

Stocks with buy calls and price upgrades, that are outperforming Nifty50

For this week's analysis, we look at five stocks that:

1) have target price upgrades from analysts (within the past month)

2) outperformed the Nifty50 index over the past one month and

3) received multiple broker buy calls in the past one year.

Only 29 stocks qualify for all three criteria across the entire stock universe. We picked out some interesting ones:

Dalmia Bharat: This cement company has caught the attention of brokerages and is in Trendlyne's top screeners as well. It outperformed the Nifty50 by over 14% in the past one month and received five brokerage buy calls over the past year, as well as one target price upgrade in the past month. Geojit notes, "DBL’s strong capacity expansion plans to become a pan India player with 110-130MT by 2031 (48MT by FY24) while maintaining a strong balance sheet (target Net Debt /EBITDA <2x) supports valuation re-rating."
Apollo Hospitals: This healthcare company has been under the radar in the past year with Covid19 limiting patient access and voluntary treatments. But in the past quarter, it has outperformed the Nifty50, and also beat the index by 11% in the past month, and HDFCSec notes that, "With multiple growth drivers in place, Apollo is likely to report strong revenue/EBITDA CAGRs of 31%/52% over the next two years."
KNR Constructions: This construction company is gaining on expectations that it will benefit from the boost in government infrastructure spending. The stock outperformed the Nifty50 by over 3.5% in the past month. As of Jun’21 end, Axis Direct analysts point out, "the KNRCL order book stood robust at Rs 6,596 Cr (2.44x of FY21 revenue), comprising both road and irrigation projects. The current order book size reflects comfortable revenue visibility for the next 2-3 years."
FIEM Industries: This smallcap automotive light and indicator manufacturer has stolen the limelight after emerging as the sole parts supplier for Ola Electric in key products. This pivots this small player into the realm of larger suppliers, opening up to new orders just as the industry is ramping up, according to analysts. The company outperformed the Nifty50 by 34% the past month as investors jumped into the stock on the Ola news.
Oil India: Post result analysis of Oil India have been optimistic about its prospects, with the economic rebound. The company's stock was a muted performer over the past year but has seen a steady climb since May, and outperformed the Nifty50 by over 10.9% in the past month. Brokerages have given the stock three target price upgrades in the last month alone.

The Baseline

12 Sep 2021

Five Interesting Stocks Today

Sobha: For the first time in FY22, this real estate company’s insiders are selling shares. And it’s not just any insider, but the company’s Managing Director. On September 3, JC Sharma, the Managing Director of Sobha sold 30,000 shares worth Rs 2.1 crore in an insider trade, during a week when the stock jumped over 30%. Then, on September 7, he sold another 8,000 shares for Rs 65.3 lakhs in another insider trade. The last time a promoter, promoter group, key managerial personnel, or an institutional investor sold the company’s shares was during the first Covid-19 wave in April 2020 when L&T Mutual Fund sold over 21 lakh shares (2.2% stake). Since then, the stock is up by 4.5X.
NOCIL: Brokers are gushing about this specialty chemical manufacturing company. Three brokerages — Axis Direct, Prabhudas Lilladher, and Motilal Oswal gave it a ‘Buy’ rating with an 11% target price. Axis Direct in a note expects the company’s rubber chemicals division to receive a boost due to the resurgent demand for tyres domestically. The average broker target price is at an upside of 26%.
Blue Dart Express: This logistics company’s stock is rallying with cheap valuations despite Superstar investors taking profits. In one month, the stock is up by nearly 16%. However, it remains historically cheap as its trailing 12-month price to earnings (PE) ratio is 58.5 times compared to an average PE of 85.5 times, putting it in the buy zone. In the June 2021 quarter, Radhakishan Damani’s Bright Start Investments sold 67,000 shares in the company, reducing its stake by 0.28% sequentially.
Apollo Hospitals Enterprise: This healthcare company’s promoters have resumed pledging shares. On September 6, the company’s promoter K Vishweshwar Reddy pledged 70,000 shares worth Rs 35 crore. This is the second time Reddy pledged the company’s shares in FY22. Back in April 2021, he pledged 2 lakh shares worth Rs 58 crore. In Q1FY22, 29.9% of the promoter’s shareholding was locked in pledges, a 200 basis points increase sequentially. This was the first time, promoter’s pledges increased sequentially since Q3FY20.
Greaves Cotton: This engineering company is set to strengthen its position in the electric vehicles market. On September 9, it launched a multi-brand retail store for electric two wheelers, three wheelers, and automotive components. The company already has a strong base in the electric scooter market through its wholly-owned subsidiary Ampere Vehicles. Brokerages value Ampere Vehicles at Rs 1,800 crore and expect it to generate Rs 400 crore in sales by FY23 or 20% of the company’s total expected revenue.

The Baseline

09 Sep 2021

Chart of the week: Hero stumbles while others see two-wheeler sales rise

As economic activity ramps up, spending on two-wheelers is up. Since the peak of India's second Covid-19 wave, two-wheeler wholesales rose by nearly 82%.

However, the increase is not consistent across two-wheeler makers. For the market leader Hero MotoCorp, two-wheeler wholesales fell consecutively in July and August. But Bajaj Auto, TVS Motor Company, and Eicher Motors' Royal Enfield saw wholesales rise between May and August 2021.

The Baseline created a screener Brokerage Buy Calls and …

06 Sep 2021

Brokerage Buy Calls and Buy/Sell Zone

The Baseline

06 Sep 2021

Five analyst stock picks this week

Jubilant Foodworks: There's plenty to be jubilant about Jubilant Foodworks, according to Motilal Oswal, which gives the company an upside of 17% on a price target of Rs. 4830. "In addition to its delivery and value moat, Jubilant Foodworks is boosting its technological moat to enhance its lead over its QSR peers and aggregators," analysts Krishnan Sambamoorthy and team note. "Given the structural opportunities in the QSR space and JUBI's dominant positioning, with a proven and profitable model, we expect it to be the key beneficiary of favorable trends (shift towards branded players)."
Easy Trip: For ICICI Securities, this newly listed online travel platform is a buy, with a target price of Rs 600 - an upside of 25%. "It is the fastest growing and only profitable company among online travel portals in India," analyst Rashesh Shah writes. He notes key drivers of long term growth of Easy Trip and online travel: "(1) Increased adoption of internet platforms in under-penetrated segments such as hotels, international travel and buses, (2) growth in demand in air and hotel segments due to rising income levels and (3) deeper penetration of travel into lower tier towns."
Bajaj Auto: In the auto sector, it is Bajaj Auto that is speeding away with the prize, according to Axis, which gives the stock an upside of 13%+ on a target price of Rs. 4250. "Prudent cost management by the company led to margin expansion," analyst Darshan Gangar says, "BA’s exports business is doing better than ever, which helped it cover for the weakness in the domestic market. EV business and Triumph partnership will be the key future growth drivers moving forward."
Exide Industries: Geojit is bullish on this battery storage company, giving it an upside of 16% on a target of Rs. 220. "Despite 20% increase in the lead price for the quarter, stringent cost control measures led the PAT to grow by 185% YoY," analyst Saji John observes. "The overall demand scenario is showing sign of pick up due to cyclicality. We expect the margin to show some resilience going forward due to cost optimization." Some risks remain, however. "We factor 140bps lower margin from our early estimate due to lower supply of raw material and demand normalization in the after market segment."
Nazara Technologies: Prabhudas Lilladhar has pressed play on this gaming company, initiating coverage with a bullish buy call - an upside of 29% on a target price of Rs. 2342. Analysts Jinesh Joshi and Shweta Shekhawat write, "Nazara is India’s only listed gaming company with no competitive benchmarking. As business model is scalable and focus is on growth, we don’t rule out intermittent volatility in profitability."

But still, they insist, the company is a good investment. "We believe that a portfolio approach to gaming eliminates shelf life risks, as the business model can be altered depending on technological advancements and changing taste of consumers. With net cash balance sheet of Rs 4.8bn, Nazara has plans to expand its gaming portfolio inorganically which offers distinct option value."

The Baseline

02 Sep 2021

Some auto execs see big jumps in pay, despite downturn

FY21 was a tough year for automobile original equipment manufacturers (or auto OEMs) due to the pandemic and lockdowns. However, it was a good year for some auto OEMs' executives. Three of the top four listed two-wheeler makers' Managing Directors' (MD) remuneration ratios jumped in FY21 (The remuneration ratio is the ratio of the salary of a company's top management to the median employee's).

As per Eicher Motors' annual report, MD Siddhartha Lal's salary was Rs 21.1 crore in FY21, or 340 times the salary of the median employee. This was an increase from 311 times the median salary in FY20. Meanwhile, Eicher Motors' net profits in FY21 fell by 26%.

Rajiv Bajaj, MD of Bajaj Auto, received an annual salary of Rs 40.5 crore (621 times the median salary), and Pawan Munjal received an annual salary of Rs 86.9 crore (826 times the median salary). Bajaj Auto and Hero MotoCorp's FY21 net profits fell by 7% and 20%, respectively.

The Baseline

01 Sep 2021

Five Interesting Stocks Today

Adani Transmission: This power transmission company’s stock rose 74.7% over the last month and is currently the most overbought stock out of the Nifty500 stocks. It is strongly overvalued according to technical indicators like RSI over 70 and MFI and is trading above all the simple moving averages. This company’s shares are the best performing in the Nifty 500.
AU Small Finance Bank: This small finance bank has seen high level exits over the past few months, and now its head of internal audit Sumit Dhir resigned for personal reasons. The company’s management clarified that it is still in discussions with him to retain his services. This dragged the company’s stock down by 12% on Tuesday as investors were jittery about another high level exit after the bank’s Chief Risk Officer Alok Gupta quit in July, a few months after taking up his position. The bank said there have been no other exits from top management apart from these two.
PI Industries: This agrochemical company has impressed analysts with six brokerages upgrading their target prices for the company’s shares of the past one month. In Q1FY22, the company posted a 12.6% rise in revenues to Rs 1,194 crore and net profit was up 22.3% YoY to Rs 187.2 crore. On a sequential basis, revenues were flat, and profits rose by 4.1.% Analysts are enthused by the company’s foray into the pharmaceutical space by acquiring Ind-Swift Laboratories’ active pharmaceutical ingredients business for nearly Rs 1,530 core.
Infibeam Avenues: This fintech company’s rose nearly 19% and ended trade at Rs 47.35 and saw its weekly volumes rise nearly four times its weekly average of 82 lakh shares. This is a stock volatile over the past 4-5 months as it has hovered between Rs 39-55 for the past one year, with many ups and downs. The stock crossed all its simple moving averages on Tuesday.
Max Healthcare Institute: This hospital chain company’s stock rose nearly 15% in two sessions at the end of Tuesday and touched a new 52-week high of Rs 398.85, before ending at Rs 386.10. The company announced on Friday, after market hours, that its subsidiary bought the rights to develop a 500-bed hospital at Saket in South Delhi. The land on which the hospital will be built is situated between two of its existing hospitals in that area. Once all its facilities are integrated in Saket, Max Healthcare will have amongst the largest healthcare complexes in Asia with an over 2,300 bed integrated facility in Saket by 2024.

The Baseline created a screener Multiple broker buy calls …

31 Aug 2021

Multiple broker buy calls over the past year

Stocks with multiple broker buys over the past year

The Baseline created a screener Stocks with buy calls …

31 Aug 2021

Stocks with buy calls from brokerages, promoter shareholding increase and low volatility

Low volatility stocks with buy calls and increase in promoter shareholding