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The Baseline created a screener Stocks Close to their …

12 Mar 2021

Stocks Close to their All Time High

Stocks that are trading near their all time highs

The Baseline

12 Mar 2021

Five Interesting Stocks Today

IDBI Bank: After exiting the Reserve Bank of India’s prompt corrective action or PCA framework, IDBI Bank’s shares rose 10% in trade. With this, some of the lending curbs imposed on the bank by the banking regulatory would cease. This move comes in the heels of news flow that LIC is planning to sell its stake in the bank to ease its path to an eventual IPO later this year. There are also reports that both the government and LIC are planning on selling their stakes together.
Indian Energy Exchange: The electricity trading platform surged to a life-time high of Rs 349 during trade today a couple of days after it announced that National Stock Exchange and ONGC have bought stakes in the company’s subsidiary Indian Gas Exchange (IGX). This comes a few weeks after Adani Gas, Torrent Gas and GAIL announced stake purchases in IGX, taking the stake sale in the subsidiary to over 40%. The company’s monthly volumes of electricity traded also jumped 50% YoY in February 2020, aiding the stock’s movement.
Tata Power: Two news items have helped the Tata Power stock skyrocket in the past couple of days--one is the proposed setting up of an infrastructure investment trust or InvIT for its solar assets and the second is the news flow that the company is in plans to set up charging infrastructure for Tesla Inc in India. The company’s stock touched a 52-week high of Rs 114.50 today.
Ambuja Cements: Mutual funds have been decreasing their holdings in Ambuja Cements. In February 2020, mutual funds sold nearly 40 lakh shares in the company. The last time mutual funds increased their stake on a month-on-month basis was September 2020.
Uflex: This company’s stock is up by 17.7% in the past one month after reaching its 52-week high. However, its valuation remains cheap relative to its historic averages despite the rally. The trailing twelve-month (TTM) price-to-earnings (PE) ratio is 4.4 times, against a historic average PE of 5.6 times, putting it in the buy-zone.

The Baseline created a screener Nifty 500 - Brokers' …

12 Mar 2021

Nifty 500 - Brokers' top picks

Nifty 500 - Brokers' top picks based on recommendation upgrade and positive target price.

The Baseline

10 Mar 2021

Chart of the week - Pharmaceutical companies' Q3 R&D spend

In Q3, for the third consecutive quarter, pharmaceutical companies recorded strong revenue growth. Even with an expanding top-line, pharma companies continued to allocate a healthy 5-10% of revenue to research & development expenses. You can check out industry-wise results here.

The Baseline

09 Mar 2021, 10:00PM

Five Interesting Stocks Today

Tube Investments: This Murugappa Group auto components company hit its lifetime high today in share price. TII has partnered with a Korean firm to design electric three wheelers. MD Vellayan Subbiah said that the company will start manufacturing and selling electric three wheelers by the end of this calendar year.
Aditya Birla Fashion and Retail: This retail company's promoter has been buying shares via market purchases, purchasing over 820,000 shares across two transactions. The stock has seen a recent recovery in its share price, although it has still not hit the levels it was at one year ago.
Interglobe Aviation: This airline company has seen a jump in delivery volume over the last two trading days. Its share price has been falling with rising delivery after hitting a fresh year high on March 4.
Coforge: This IT software company typically flies under the radar, receiving less news coverage compared to its peers. But the business has caught the attention of brokerages, which have issued four buy calls on the firm in the past three months, citing large deal wins in the insurance and health verticals in its December quarter.
Laurus Labs: This pharma company is seeing its short term SMAs trading above its longer 200 day SMAs. The company’s share price has outperformed the Nifty50 in the past one year, rising over 313%. However, the stock has underperformed the index in the last month and quarter, and its recent share price decline has put it in the PE Buy Zone.

The Baseline

05 Mar 2021

Five Interesting Stocks Today

EID Parry: This sugar producer’s stock is up by 11% in two weeks and is now 4.3% off its 52-week high and 8% off its lifetime high. Its valuation remains cheap relative to its historic average as its trailing 12-month (TTM) price to earnings (PE) ratio is 10.2 times, below the median PE ratio of 33.7 times. This puts it in the buy zone.
Acrysil: This household appliances maker’s marquee investor has cut its stake. This week, Ashish Kacholia’s Everest Finance & Investment Co, sold 5.3 lakh shares, cutting its stake by 2%. The company also counts Sunil Singhania’s Abakkus Asset Managers as an institutional investor, holding a 6.4% stake.
Indian Railway Catering & Tourism Corporation: This railway company has caught the eye of mutual funds. At the end of January 2021, mutual funds held 81.4 lakh shares in the company, up from 50 lakh shares in December 2020. In one month, its stock price has jumped 34%.
Ajanta Pharma: This pharmaceutical company’s stock is falling and its delivery volume is rising. Its average delivery volume this week jumped to 56%, ranging from 29% to 70%. This is higher than the average monthly delivery volume of 41%. Its stock price is down by 5% in two weeks.
State Bank of India: This public sector bank’s index outperformance has paused. In the past month and quarter, its stock beat the benchmark Nifty 50 by 14% and 40% respectively reaching a lifetime high. However, in the past week, it has underperformed the Nifty 50 by 4%.

The Baseline

03 Mar 2021

Chart of the week - High valuations of commodity chemical companies

Commodity chemical companies have rallied in 2021. This has pushed their valuations above historic averages. Of the top-4 commodity chemical companies, four are trading with the trailing 12-month (TTM) price-to-earnings (PE) ratio above historic averages. Only one company is in the buy zone.

The Baseline

03 Mar 2021

Five Interesting Stocks Today

JK Lakshmi Cement: This cement manufacturing company’s stock is up by 24% in one month, going past a two-year high. Its valuation remains historically cheap as its trailing 12-month (TTM) price to earnings (PE) ratio is 13.2 times, below the median PE of 45.4 times. This puts it in the potential buy zone.
Mahindra & Mahindra: This automobile manufacturer reported a 41% YoY increase in the sales of passenger vehicles in February 2021, and a 25% YoY rise in tractor sales. In January 2021, it announced a price hike in its PVs and commercial vehicles (CVs). Even with the price rise and higher sales, its stock is down by 12% in one month.
Amara Raja Batteries: Brokers are bearish on this auto-parts and equipment manufacturer’s stock. Two brokerages - ICICI Securities and Motilal Oswal have given a recommendation of ‘Reduce’ and ‘Neutral’ respectively. The brokerages expect the rise of electric vehicles to eat away the company’s lead-acid business. The average broker target price is at a downside of 3% against the market price despite a decline of 8.8% in one month.
Axis Bank: This private sector lender’s promoter Life Insurance Corporation of India (LIC) which holds an 8.5% stake is decreasing its holding. Last week, LIC sold 16.2 lakh shares for Rs 125.5 crore via a market sale.
Godrej Agrovet: This agricultural company’s promoters are buying the company’s shares via market purchases. Last week alone, the promoters purchased over 77,000 shares for Rs 3.7 crore via six market purchases. In 2021, the promoters have purchased 1.5 lakh shares worth Rs 7.6 crore.

The Baseline

26 Feb 2021

Five Interesting Stocks Today

Aarti Industries: This chemicals company’s promoters are selling shares via market sales. This week alone nearly 45,000 shares were sold for Rs 5.4 crore. Since the year began, promoters have sold 1.6 lakh shares worth Rs 19.7 crore, and directors sold 5,400 shares worth Rs 65 lakhs across 14 market sales.
GMM Pfaudler: This glass-lined equipment manufacturer’s stock is up by 13% in two weeks. This jump has pushed its price over the 200-day exponential moving average (EMA), 100-day EMA, and 50-day EMA. The stock price has still not recovered from its heavily discounted offer for sale (OFS) in September 2020.
Cochin Shipyard: Mutual funds are selling this shipbuilders shares in droves. In April 2020, mutual funds held 94 lakh shares in the company. Between April to January 2021, they disposed of 97% of their stake, holding just 2.4 lakh shares in the company in January 2021.
Page Industries: Brokers have turned cold on this innerwear company. In the past month, two brokers - Geojit BNP Paribas and Chola Wealth have downgraded their recommendations on the stock while ICICI Securities and Axis Direct have maintained a ‘Hold’ rating. Its average broker target price is still at a downside of 4% despite its stock dropping by 10% in three weeks.
Burger King India: This quick-service restaurant’s insiders have pledged shares for the first time since it listed in December 2020. This week, 1.4 lakh shares worth Rs 2 crore were pledged by insiders. Its stock price has dropped by 25% since its first week of trading.

The Baseline

24 Feb 2021

Chart of the week - Nifty50 top 5 most overbought companies

Since the year began the benchmark Nifty50 rose by 5%, but some index companies saw far bigger gains. This buying pressure pushed them into the overbought zone. Here are the top 5 most overbought companies in the Nifty50 based on their relative strength index (RSI) and stock price change in 2021.