Trendlyne Blog: The Baseline, Latest on stock market and finance in India and the world.

The Baseline

11 Dec 2020

Five Interesting Stocks Today

JSW Steel: This steel manufacturing company’s promoters are decreasing pledged equity. Since the beginning of the month promoters have received 2.7 crore shares worth Rs. Rs. 997.5 crores as revocation of pledged holdings. Between September 2019 to September 2020, promoters’ pledged shareholding dropped from 50.1% to 26.2%.
IDBI Bank: An independent director of this bank, who also serves as an external member on the RBI’s Monetary Policy Committee (MPC) has tendered her resignation with immediate effect.
Mahindra & Mahindra: This vehicle manufacturer’s chairman emeritus and former CEO disposed over 5,000 shares worth Rs. 37.5 crores via three market sales in the past two weeks. Since the beginning of last month, insiders disposed nearly 85,000 shares worth over Rs. 3 crores.
Lux Industries: This apparel manufacturer’s price has shot up by 15% in the past month, and is 4.8% off its 52-week high. Despite this price increase, its trailing 12-month PE of 28.4 times remains clear of the average historic PE of 37.5 times, putting it in the ‘neutral zone.’
Godrej Industries: This group company’s promoters have been increasing their stake in the company via market purchases. On December 8, over 1 lakh shares worth Rs. 4.5 crores were acquired via two market purchases. In November, 15 lakh shares worth Rs. 63.6 crores were reacquired in six market purchases.

The Baseline created a screener Stocks with negative PEG

04 Dec 2020

Five Interesting Stocks Today

Dixon Technologies: On December 1, insiders disposed of over 6,700 shares in this consumer electronics company for Rs. 7.6 crores via 33 market sales. This includes 1,000 shares disposed of by the promoter. In November, a total of 1.2 lakh shares were disposed for Rs. 115.4 crores via 71 market sales by insiders including promoters and key management personnel.
Bandhan Bank: This bank is catching mutual funds’ attention again. Between February to July 2020, mutuals dumped over 3 crore shares in the company, but since then have picked up 5.2 crore shares. At the end of Q2, mutual funds held a 4.9% stake in the company, up from 1.7% in Q1.
Gujarat Industries Power Company: This power generation PSU’s price has jumped up by 17.8% since the beginning of November and is 6.5% off its 52-week high. However, with a trailing 12-month PE of 5.5 against an average PE of 7.4, it remains in the ‘buy-zone'.
V Mart Retail: This hypermart’s promoter group, holding a 1% stake in the company, has resumed disposal of its holding. Recently, it disposed 25,000 shares worth Rs. 5.7 crores via a market sale. In September, the promoter group disposed 57,000 shares worth Rs. 11.4 crores via two market sales.
Godfrey Phillips India: This tobacco company’s promoter group is back to reacquiring its equity. On December 2, it acquired 50,000 shares at Rs. 4.5 crores via a market purchase. In less than three months, the promoter group acquired 1.2 lakh shares worth Rs. 11.3 crores via 12 market purchases.

The Baseline

02 Dec 2020

Five Interesting Stocks Today

Huhtamaki India: Since the beginning of November, this packaging company’s price has risen by 13.3% and is off its 52-week high by 1.7%. Despite this price rise, its trailing 12-month (TTM) P/E of 14.5 is below its average P/E of 32, putting it in the ‘buy-zone.’
InfoEdge: In the previous month, insiders disposed of over 40,500 shares in this IT-services company for Rs. 8.9 crores via 15 market sales. Its price rose by 18.4% in November, making a new lifetime high.
Emami: This FMCG conglomerate’s promoter group, holding a 11.4% stake in the company recently created a pledge using 9.5 lakh shares worth nearly Rs. 40 crores. At the end of September 2020, pledged shareholding was 46.5% of promoter holding, down from 90.6% in the previous quarter.
Maruti Suzuki: Brokers are bearish on this automobile manufacturer, and its monthly sales numbers don’t help. It received two broker recommendation downgrades in the past month, four downgrades since July, and has an average broker target price 4.3% below its current price. Despite the festive season, its total sales declined by 16% from October to November.
Phoenix Mills: This realty company is the pick of mutual funds. Since July, mutual funds have acquired 91.6 lakh shares in the company, increasing their stake by 57%. At the end of September 2020 mutual funds held 14.9% of the company, against 5.9% in September 2019.

The Baseline

27 Nov 2020

Five Interesting Stocks Today

JSW Energy: This power generation company’s promoters are back to pledging their holding. On 24 November 1.1 crore shares valued at Rs. 69.5 crores were pledged by promoters. Prior to this, between November 1 to November 17, 1.12 crore pledged shares were released for Rs. 67.9 crores. As of September 30, 44.5% of promoter holding was pledged.
Future Consumer: This FMCG company’s CEO Rajnikant Sabnavis resigned from the company with effect from 27 November 2020. In Q2, the company reported a net loss of Rs. 146.8 crores against a net loss of Rs. 16.7 crores in the year-ago period, with quarterly revenue declining by 78.7% on a YoY basis.
Aurobindo Pharma: This pharmaceutical company’s promoter disposed 3 lakh shares in the company valued at Rs. 25.3 crores via a market sale this week. Since November 10, its stock has climbed 13.9% on the back of strong quarterly results. In Q2, the company reported a 26% YoY increase in quarterly net profits at Rs. 805.6 crores with revenues increasing by 13% annually.
CCL Products: This coffee company’s stock price has increased by 12.8% since the month began and is 5.5% off its 52-week high. However, with a trailing twelve month (TTM) PE of 20.7 against an average PE of 23.9, it remains in the neutral zone. Mutual funds have also been accumulating the stock, doubling their position between January to October 2020.
Gland Pharma: This pharmaceutical company only listed on bourses last week. Despite a big-money public offering of Rs. 6,480 crores at Rs. 1,500 per share, its retail portion was subscribed only 0.24 times. However, it listed at a premium of 14%, and in its first week of trading is up by over 40%.

The Baseline

24 Nov 2020

Five Interesting Stocks Today

Narayana Hrudayalaya: This hospital chain operator’s stock hit its lifetime high despite weak Q2 performance. It reported a net loss of Rs. 3.4 crores against a profit of Rs. 45.3 crores in the year-ago period, with revenue declining by 26.9% yearly. In the past two weeks, its price has risen by 15%.
CESC: This power-utility company’s stock price is falling with rising delivery volume. The average weekly delivery volume (66.7%) is higher than its monthly weekly delivery volume (43.2%) and 6-month weekly delivery volume (27.5%). Since mid-September, it has lost 13.3%.
InterGlobe Aviation: Thie airline company’s stock is being offloaded by top management. On November 21, its senior vice president and CSO disposed over 21,000 shares at Rs. 3.6 crores via two market sales. In November, over 38,700 shares at Rs. 6.3 crores were disposed by top management personnel via 9 market sales.
Blue Star: Brokers have changed their tune on this airconditioner company following its Q2 results. Nirmal Bang and Dolat Capital have downgraded the stock to ‘Accumulate’ and ‘Sell’ with an average broker target price at a downside of 16.9% against its current price.
Aavas Financiers: This housing finance company recently saw a big shareholding change. Au Small Finance Bank divested its 4.5% stake, while Nomura India Investment Fund and SBI Life Insurance acquired 9 lakh and 6.6 lakh shares for a 1.1% and a 0.8% stake in the company respectively. Since late September 2020, this housing finance company’s stock has risen by 16.5%.

The Baseline

20 Nov 2020

Five Interesting Stocks Today

Thyrocare Technologies: This diagnostic chains operator’s delivery volume has doubled since November 11 from 27.5% to 58.2%. The delivery volume is higher than its weekly average (46.7%), monthly average (38.5%), and 6-month average (26%). This rise in delivery is coupled with its share price dropped by 17.4% since October.
KNR Constructions: Brokers remain bullish on this construction company despite Q2 PAT declining by 29% y-o-y. ICICI Securities, HDFC Securities, Motilal Oswal, and Dolat Capital maintained a ‘Buy’ on the company and raised the target price. The average broker target price is 37.2% higher than the current price.
PTC India: This energy company has seen mutual funds continue to cut their holding. On 17 November, Aditya Birla Sun Life Mutual Fund disposed of 60 lakh shares in the company via a market sale. This is the second disposal after it sold 59.2 lakh shares on October 20. In total, the mutual fund disposed of a 4% stake in the company. Its mutual fund holding has dropped for 8 consecutive quarters, from 14.5% in September 2018 to 6.4% in September 2020.
Gulf Oil Lubricants of India: This oil company under the Hinduja Group’s share price has jumped by 18.6% in the past week to a 6-month high and is 10% off its 52-week high. However, with a trading twelve months (TTM) PE ratio of 23.8, against an average PE of 30.6, it’s still in the ‘buy zone.’
Dixon Technologies: On November 18, this consumer electronics company’s insiders have disposed of over 3,400 shares at Rs. 3.5 crores via 12 separate market sales. Its price has surged by 20% in one month.

The Baseline

18 Nov 2020

1. JSW Energy: The promoter groups of this power company received a total of 1.1 crore shares valued at Rs. 67.9 crores as revocation of pledged shares. The company’s pledged shareholding is 44.5% of promoter holding.

2. Shree Cements: This cement manufacturing company’s price has jumped by 17.8% since October, reaching a new 52-week high. It’s now 3.4% off its lifetime high. Its peers in the cement industry, ACC, Ambuja Cement and UltraTech Cement, each made record-highs in the past month.

3. Gujarat Gas: This natural gas distribution company’s Q2FY21 net profit stood at Rs. 475 crores, an 8-fold jump against the year-ago period. Following its strong earnings, brokers were upbeat. BOB Capital Markets and ICICI Securities upgraded their recommendations to ‘Buy’ each. The average broker target price following the Q2 results is an upside of 16% against the company’s trading price.

4. Divi’s Laboratories: This pharmaceutical company promoter and board members are disposing of its stock. In the past week, the company’s whole-time director and promoter disposed of over 10,600 shares at Rs. 3.5 crores. In total, insiders have disposed of over 13,900 shares at Rs. 4.6 crores since the beginning of the month, with the stock price rising by 12.6%.

5. Siemens: Mutual funds have turned cold on this power distribution company. In February 2020, mutual funds held over 1.2 crore shares, and by October, their holdingdropped by 60% to 50 lakh shares. The company saw mutual funds disposing shares in each of the past 8 months.

The Baseline

13 Nov 2020

Five Interesting Stocks Today

Forbes & Company: This engineering company under the Shapoorji Pallonji Group has declined by 4% since the beginning of the week and by 11% since the beginning of the month in anticipation of its quarterly results which is expected on 13 November.
Kansai Nerolac Paints: This third largest paint-manufacturing company’s stock price has increased by 7.4% in the past month, and is 8% off its 52-week high and 12.9% off its lifetime high. The two largest pain manufacturing companies (Asian Paints and Berger Paints) each hit their respective lifetime highs last week.
Thyrocare Technologies: This diagnostic chains company has seen its delivery volume spike as its price decreased. Its average weekly delivery volume (52.5%) has jumped over its average monthly delivery volume (38.1%) and average 6-month delivery volume (26.3%), with its price dropping by 7.8% over the past week and by 12.9% since October.
Dixon Technologies: This electronics company’s chairman and CEO have disposed of over 98,000 shares in the company via four market sales valued at Rs. 98.6 crores. Back in September, Vanguard Emerging Markets Fund purchased1.5 lakh shares in the company for Rs. 139.6 crores, in that time its stock has climbed 19.4%.
Crompton Greaves Consumer Electricals: Promoters of this household appliances company have significantly cut their stake. Amalfiaco and MacRitchie, two private equity firms sold 5.5 crore shares or 8.7% of the company, worth Rs. 1,631 crores, while HDFC Life Insurance Company, SBI Mutual Fund, and Societe Generale purchased 1.8 crore shares for Rs. 545.6 crores.

The Baseline created a screener Pharma stocks with recent …

13 Nov 2020

Pharma stocks with recent downturns in share price

Pharma stocks seeing negative week change in share price