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The Baseline

05 Jan 2021

Five Interesting Stocks Today

Eicher Motors: This two-wheeler and commercial vehicle maker’s recovering sales numbers pushed up its stock price. In December 2020, total sales rose by 37% on a yearly basis, and by 16% on a monthly basis. Its price is up by 12% since December 21 nearing a 52-week high.
Rashtriya Chemicals & Fertilizers: This chemical company’s stock is up by 8% in the past two weeks, and is 5% off the 52-week high. Its current trailing 12-month (TTM) PE of 8.7 is below its historic average PE of 21.3, putting it in the buy-zone.
Tata Consultancy Services: This IT-services company’s results are expected later this week, and in anticipation, the stock has jumped 8% since the month began. Its gains have outpaced that of its rivals Wipro and Infosys, which are up by 5.2% and 3.1% respectively.
Punjab National Bank: This public sector bank is being offloaded by mutual funds. Between July to December, mutual funds sold 13.6 crore shares in the company, with net outflows in each month. In that time, its stock declined by 2%, while the benchmark Nifty gained 32% and the Nifty PSU Bank index gained 23%.
City Union Bank: Brokerages are positive about this bank. In the past month, it received one recommendation upgrade and three target price upgrades in four broker reports. Its average broker target price is 8% higher than its market price.

The Baseline

02 Jan 2021

Five Interesting Stocks Today

Orient Cement: This cement company’s price has jumped by 20% since the month began, higher than the 8.5% gain of the cement industry. Despite the rise, it remains in the neutral zone as its trailing 12-month (TTM) price to earnings ratio of 18 is lower than the median PE of 21.8.
Kotak Mahindra Bank: This private-sector bank’s insiders are disposing equity. In this week alone, over 36,000 shares worth Rs 7.3 crore were disposed in 15 market sales. This includes 15,500 shares worth Rs 3.1 crore disposed by promoters and directors of the company.
KNR Constructions: In December, this infrastructure company’s stock has gained 14% to a new 52-week high and its board approved a bonus issue in a 1:1 ratio. It was also one of two infrastructure companies receiving a ‘Buy’ rating from ICICI Securities in its sector report.
Jindal Poly Films: This polyester-packaging film company’s CEO resigned from the company effective immediately. Its stock price is down by 11.5% since August.
Chemcon Speciality Chemicals: Plutus Wealth Management, a UK-based investment company picked up 10 lakh shares worth Rs 42.8 crore in this chemical company. The company listed on exchanges only in September, at a premium of 71% over its upper IPO price band. Since listing, its price has dropped by 14%.

The Baseline

30 Dec 2020

Five Interesting Stocks Today

Larsen & Toubro: This construction engineering company’s stock jumped 42% in Q3, pushing its trailing 12-month (TTM) PE from 11.2 to 15.8. Despite this, its TTM PE is below its historic average PE of 24.4, putting it in the buy zone.
SBI Life Insurance Company: Brokerages were positive on this life insurance company in Q3. In the past three months, it received one recommendation upgrade and five target price upgrades from brokers. Its average broker target price is 11.8% higher than its market price.
JK Cement: This mutual fund company’s stock is down by 11% since the month began, while the benchmark index is up by 6%. Given its slump, SBI Mutual cut its stake by nearly 1% disposing over 7 lakh shares in the company last week.
Info Edge: This internet company’s chairman and non-executive director recently disposed over 5,700 shares worth Rs 2.6 crore via a market sale. In December, over 77,000 shares worth Rs 23 crore were disposed across 19 market sales
Sumitomo Chemical India: This chemicals company saw massive mutual fund buys this quarter. In September 2020, mutual funds held 52.4 lakh shares, and by December, they acquired an additional 40 lakh shares. Since July, it has seen net mutual fund inflows in every month.

The Baseline

26 Dec 2020

Five Interesting Stocks Today

Shalby: After Monday’s market fall, this hospital chain operator’s price has jumped by 8.5% and is 2% off its 52-week high. On the back of this price momentum, its delivery volume has shot up. It’s delivery volume this week was 43.7%, against an average monthly delivery volume of 33.4%, and an average 6-month delivery volume of 35.6%.
Max Financial Services: This life insurance company’s managing director and vice-chairman disposed 2 lakh shares worth 12.8 crores via a market sale. Earlier this week, private equity firm KKR, sold 37.4 lakh shares in the company for Rs 245 crores, representing 1.08% of the company.
Alkem Laboratories: This pharmaceutical company’s stock price has jumped by 8% since the end of November, outpacing the Nifty Pharma index which gained 5%. Despite this price rise, its trailing 12-month PE stands at 23.6 times, against a historic PE of 28.8 times, and lower than the Nifty Pharma PE of 37.9 times.
Ujjivan Small Finance Bank: Mutual funds have taken a liking to this small finance bank. Between October to November, mutual funds acquired 38 lakh shares in the company, the third month of successive mutual fund inflow, against 78.8 lakh shares disposed between March to July.
Lemon Tree Hotels: The promoter group of this hotel company disposed4.1 crore shares, representing 5.1% of the company via a market sale. Its stock rose by nearly 50% between November 24 to December 8 as a Covid-19 vaccine began deployment, but since then is down by 16.5%.

The Baseline

23 Dec 2020

Five Interesting Stocks Today

Kolte-Patil Developers: This real estate company’s chief financial officer (CFO) resigned from the company effective immediately. The company’s stock price sharply recovered by 16% after Monday’s drop, outperforming the Nifty Realty index, down by 2% since the week began.
Persistent Systems: This IT-services company’s price has jumped by 30% since November to hit a lifetime high. The price rise has pushed its trailing 12-month PE from 23.1 to 30.6 times in the past month, placing it in the sell zone.
Hero MotoCorp: Broker excitement towards this two-wheeler market leader has cooled off. ICICI Securities, in its recent report on the automobile industry, downgraded the company’s stock from Buy to Hold. The only downgrade in the two-wheeler market, while its competitor Bajaj Auto received a ‘Buy’ rating.
Chalet Hotels: This hotel company’s promoter recently acquired 1 lakh shares worth Rs 1.8 crore via a market purchase. Since the month began, over 3.2 lakh shares worth Rs 5.6 crore have been acquired by promoters. These acquisitions by promoters were the first insider trades since April 2020.
Birlasoft: This software company’s foreign institutional investor (FII) Acadia Partners sold 67 lakh shares worth Rs 137.6 crore via a bulk deal. Out of this, 8 lakh shares worth Rs 16.4 crore were picked up by four mutual funds - Aditya Birla Sun Life, ICICI Prudential, Invesco, and Avendus.

The Baseline

18 Dec 2020, 02:21AM

Five Interesting Stocks Today

Max Financial Services: This insurance company’s stock has shot up by 15% since October, reaching a new 52-week high, and is less than 2% off its lifetime high. Its trailing 12-month (TTM) PE is 69.9, against an average historic PE of 92.4, putting it in the ‘neutral zone.’ The average TTM PE of the life insurance industry is 71.7.
Dixon Technologies: This consumer durables company’s promoters have resumed disposing equity. This week over 5,300 shares worth Rs 6.6 crore were disposed. In the past two months, over 55,000 shares were disposed worth Rs 58 crore. Since the beginning of the month, its price is up by 19%.
Westlife Development: This fast-food restaurant operator which holds the master franchisee for McDonald’s in South and West India is up by 10% since the week began. This week saw its competitor, Burger King India list at a premium of 92% to its upper IPO price band, and its food service provider Mrs. Bectors Food Specialties’ IPO.
Va Tech Wabag: This water treatment company in which Rekha Jhunjhunwala holds an 8% stake is seeing mutual fund exits. Between July to November, mutual funds disposed 5.4 lakh shares, with 1.6 lakh shares sold last month. For the quarter ended September 2020, its mutual fund holding was 3.5%, down from 7% in September 2019.
Apollo Tyres: Brokers are turning cold on this tyre manufacturing company. Recently, ICICI Securities downgraded its recommendation on the stock from ‘Buy’ to ‘Hold.’ After its Q2 earnings, Dolat Capital and BOB Capital Markets each decreased their target price on the stock. Its average broker target price is a downside of 19.7% against its market price.

The Baseline

16 Dec 2020

Five Interesting Stocks Today

Sequent Scientific: This pharmaceutical company’s promoter group has been steadily disposing its equity. Since the month began, the promoter group disposed over 8 lakh shares worth Rs. 13.8 crores in 8 market sales.
Ramkrishna Forgings: This carbon and steel manufacturing company’s stock is trading with high delivery volume. The stock’s daily delivery volume (75%) on 14 December jumped over its weekly (25.4%) and monthly (44.8%) delivery average. This rising delivery is accompanied by rising price as its stock has risen by 45% since October.
Rashtriya Chemicals & Fertilizers: This chemical company’s price has shot up by 30% since November and is 4% off its 52-week high. However, it still remains historically undervalued, as its current trading 12-month PE of 8.9 is below its average PE of 21.4, putting it in the ‘buy zone.’
Chalet Hotels: With a Covid-19 vaccine being deployed, this hotel operator’s stock is rising. Since the month began its stock has climbed 30% and the rating agency ICRA has upgraded its term loans from BB+ to BBB+, and short-term loans from A4+ to A2.
Nesco: Mutual funds are trimming their holding in this engineering company. Since May 2020, mutual funds have sold over 1.3 lakh shares in the company. November was the seventh straight month of mutual fund outflows.

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

Stocks with negative PEG

The Baseline

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.