Market closes higher, Zydus Wellness Q3 profit jumps 13X YoY

Trendlyne Analysis

Markets rose in today's trading. Nifty 50 closed at 17,780.00 (203.2, 1.2%) , BSE Sensex closed at 59,558.33 (695.8, 1.2%) while the broader Nifty 500 closed at 15,293.35 (177.2, 1.2%)

Market breadth is surging up. Of the 1,851 stocks traded today, 1,364 showed gains, and 460 showed losses.

Procter & Gamble Hygiene & Healthcare, Zydus Wellness, Quess Corp, and Orient Electric are trading with higher volumes as compared to Tuesday.
ICICI Securities upgrades its rating on United Breweries to 'Buy' from 'Hold' with a target price of Rs 1,900, indicating an upside of 13.64%. The brokerage sees the company's Rs 800-crore bank balance, strong supply chain, and strong return ratios to propel long term-growth for the company. For Q3FY22, The company's revenue rises 23% YoY to Rs 1,581 crore and profit rises 39% to Rs 100 crore.
Zydus Wellness Q3FY22 net profit jumps 13 times YoY to Rs 23.3 crore despite a 2.3% rise in revenues to Rs. 385 Crore. The sugar substitutes segment saw Sugarfree continue to remain the market leader a 96% market share (up 104 bps over Q3FY2021).
Hero MotoCorp's wholesales drop 21.69% YoY to 3,80,476 units comprising of 3,57,845 units of motorcycles (down 20.3% YoY) and 22,631 units of scooters (down 38.6% YoY). Exports rises 20.4% YoY to 21,816 units.
Indian Hotels Company generates a net profit of Rs 76 crore in Q3FY22 as against a loss of Rs 119 crore in Q3FY21. The hotel major's revenues grow 2X to Rs 1,134 crore in Q3 led by a swift recovery in occupancy rates driven by a robust festive and holiday season.
Spandana Sphoorty Financial is trading with more than 22 times its weekly average trading volume. Capri Global Capital, Westlife Development, Tata Teleservices (Maharashtra), and VIP Industries are trading at more than eight times their weekly average trading volumes.
Vodafone Idea is rising in trade after Care Ratings upgrades its credit rating on the company's long-term bank facilities and non-convertible debentures (NCDs) to B+ from B- with a ‘Stable’ outlook. The change in rating is because of the company opting for a 4-year moratorium on statutory dues towards adjusted gross revenues and spectrum leading to conversion of interest into equity to the tune of 35.8% of the company's shares. This helped the company in saving Rs 1 lakh crore in cashflows, improving its financials and allowing the funds to be invested in capex.
Adani Ports & SEZ's Q3FY22 net profit falls 6.6% YoY to Rs 1,472.3 crore and revenues rise marginally by 1.35% to Rs 4,422.7 crore. A 11% YoY fall in quarterly cargo volumes to 68 million metric tonnes owing to lower imports of coal and an erosion of 53 bps in EBITDA margins cause the overall fall in earnings.
Eicher Motors is rising even though its arm Royal Enfield's January 2022 total wholesales drop 15% YoY to 58,838 units. Exports rises 102% to 9,112 units. VE Commercial Vehicles' wholesales, the company's joint venture with Volvo, drop 4.2% to 5,434 units.
Alembic Pharmaceuticals is rising after the company receives a tentative approval from US Food & Drug Administration approval for Fesoterodine Fumarate Extended-Release tablets.
NMDC's iron ore sales for the month of January 2022 rise 13.4% YoY to 4.24 million tonnes (MT) led by rise in offtake in the state of Karnataka. Recently, the company also increased the prices of lump ore by Rs 300 to Rs 5,200 per tonne on higher steel demand
Kansai Nerolac's Q3FY22 net profit falls 37% YoY to Rs 128 crore despite revenues rising 14% YoY to Rs 1,820 crore. Spike in raw material costs, especially in crude oil, lead to EBITDA margin erosion of 7.8 percentage points YoY which ultimately cause the decline in profitability.
Tech Mahindra’s Q3FY22 net profits rise 2.2% QoQ to Rs 1,369 crore as revenue from operations rose 5.2% QoQ to Rs 11,451 crore. EBITDA rose 2.2% QoQ to Rs 2,060 crore while EBITDA margins contracted 30 bps QoQ to 18%. Total expenses for the quarter increase by 5.6% QoQ to Rs 9,786.8 crore as employee costs went up by 4.5% to Rs 5,660 crore

Riding High:

Largecap and midcap gainers today include Dr. Lal Pathlabs Ltd. (3,211.35, 7.72%), Union Bank of India (49.80, 6.98%) and Vodafone Idea Ltd. (11.40, 6.54%).

Downers:

Largecap and midcap losers today include Jubilant Foodworks Ltd. (3,301.60, -4.03%), Balkrishna Industries Ltd. (2,320.75, -3.05%) and Cholamandalam Investment & Finance Company Ltd. (639.20, -2.26%).

Movers and Shakers

21 stocks in BSE 500 are trading on high volumes today.

Top high volume gainers on BSE included Spandana Sphoorty Financial Ltd. (404.50, 19.99%), VIP Industries Ltd. (676.55, 12.33%) and Elgi Equipments Ltd. (381.90, 12.01%).

Top high volume losers on BSE were IFB Industries Ltd. (973.70, -5.94%), Alkyl Amines Chemicals Ltd. (3,211.30, -4.29%) and V Mart Retail Ltd. (3,743.90, -0.55%).

Capri Global Capital Ltd. (598.30, 5.17%) was trading at 25.8 times of weekly average. Westlife Development Ltd. (492.30, -0.50%) and Sudarshan Chemical Industries Ltd. (612.85, 4.44%) were trading with volumes 14.1 and 9.3 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

16 stocks took off, crossing 52-week highs,

Stocks touching their year highs included - Bank of Baroda (109.40, 3.06%), Canara Bank (269.65, 4.21%) and CCL Products India Ltd. (510.10, 8.24%).

38 stocks climbed above their 200 day SMA including Dishman Carbogen Amcis Ltd. (206.95, 7.09%) and Prince Pipes & Fittings Ltd. (716.45, 5.98%). 8 stocks slipped below their 200 SMA including AIA Engineering Ltd. (1,917.90, -1.84%) and GAIL (India) Ltd. (145.70, -1.22%).