Market closes lower, Maruti Suzuki India's Q4 net profit rises 57.7% YoY

Trendlyne Analysis

Nifty 50 closed in the red amid high selling pressure towards the end of the trading session to fall over 1% from the day’s peak. Most Asian indices closed in the green as US indices closed sharply higher on Thursday led by the tech-heavy NASDAQ 100. Meta’s Q4 results lifted the US market but lackluster results by Amazon sent the stock over 9% lower during after-market hours trading. Market volatility is expected to continue on the back of China’s growth fears, looming US rate hikes, and the geopolitical crisis in Europe. The US dollar continues to gain amid prospect of aggressive rate hikes in the US. Crude oil trades at elevated levels as the geopolitical crisis in Europe continues to disrupt its supply chain. European indices join the global trend and trade higher amid mixed earnings reports.

Nifty Smallcap 100 and Nifty Next 50 closed in the red, following the benchmark index. Nifty Realty and Nifty Auto closed lower than Thursday’s levels. Nifty IT closed in the red, tracking the NASDAQ 100 futures, which is trading lower.

Nifty 50 closed at 17,102.55 (-142.5, -0.8%), BSE Sensex closed at 57,060.87 (-460.2, -0.8%) while the broader Nifty 500 closed at 14,783.35 (-130.6, -0.9%)

Market breadth is moving down. Of the 1,866 stocks traded today, 561 were on the uptick, and 1,268 were down.

Shilpa Medicare, Kansai Nerolac Paints, Westlife Development, and Ajanta Pharma are trading with higher volumes as compared to Thursday.
UltraTech Cement’s Q4FY22 net profit rises 47.3% YoY to Rs 2,613.7 crore on reversal of provision of income tax of Rs 323.35 crore and revenue rises 9.6% YoY to Rs 15,859.7 crore. However, profit before tax falls 13.9% YoY to 2,275.6 crore. EBITDA falls 16% YoY to Rs 3,165 as power and fuel costs rise 46.7% YoY to Rs 3,594.8 crore.
Maruti Suzuki India's Q4FY22 net profit rises 57.7% YoY to Rs 1,839 crore and revenues rise 11% YoY to Rs 25,514 crore. Sales volume improves sequentially by 13.5% to 4,88,830 units whereas it was down 0.7% YoY in Q4FY22. Higher sales realization primarily drive the topline growth in Q4FY22
Gillette India’s Q4FY22 net profit rises marginally by 0.3% YoY to Rs 40.7 crore with revenue increasing 5.5% to Rs 566.5 crore. However, the company’s total expenses rose 11.3% YoY to Rs 457.8 crore with the cost of materials surging 131% to Rs 159.3 crore.
Rainbow Childrens Medicare’s Rs 1,580.8-crore IPO gets bids for 12.4X of the available 2.1 crore shares on offer on the last day of bidding. The retail investor quota gets bids for 1.4X of the available 1 crore shares on offer.
Zomato slumps below its lower end of IPO price band and touches an all-time low of Rs 71.4 on the bourses. The stock is falling for three consecutive sessions.
Axis Securities maintains a ‘Buy’ rating on Trent with a target price of Rs 1,350, indicating an upside of 10%. The brokerage believes that the company is well-placed to grow in the post-Covid-19 era, led by its success in the Westside apparel store chain, the ramp-up of Zudio apparel stores, sustainable margins, and a healthy balance sheet.
Schaeffler India and Crisil touch an all-time high of Rs 2,441.5 and Rs 3,785 respectively. Both stocks are rising for three consecutive sessions.
Stocks like Asian Paints, eClerx Services, United Breweries, and Sunteck Realty, among others, crossed their 100-day simple moving average (SMA) today.
General Insurance Corporation of India is trading with more than 39 times its weekly average trading volume. Prism Johnson, Shriram City Union Finance, Varroc Engineering, and Eris Lifesciences are trading at more than seven times their weekly average trading volumes.
IndiaMART InterMESH’s Q4FY22 net profit rises 3% YoY to Rs 57 crore and revenue rises 22% YoY to Rs 231 crore. EBITDA margin falls by 20 percentage points to 28% as manpower costs increase by 53% YoY to Rs 87 crore.
Genus Power Infrastructures is rising as it receives an order worth Rs 828.5 crore from state utility. The project will entail designing an advanced metering infrastructure system with supply, installation, and commissioning of 10 lakh smart prepaid meters.
Stocks like Nestle India, ACC, Angel One, and Tata Elxsi, among others, are outperforming the Nifty 50 index over the week, post results
Vedanta rises despite reporting a fall in Q4FY22 net profit by 4.8% YoY to Rs 7,261 crore. However, revenue from operations rises 41% YoY to Rs 39,342 crore because of higher sales volumes and an increase in commodity prices. EBITDA for the company jumps 51% YoY to Rs 13,768 crore with EBITDA margin rising 300 bps to 39%. The board recommends an interim dividend of Rs 31.5 per share with May 9 as the record date.
Shriram Transport Finance surges as its Q4FY22 net profit rises 44.2% YoY to Rs 1,091.2 crore and revenue rises 13.1% YoY to Rs 5,087.6 crore. Net Interest Income (NII) rises 22.16% YoY to Rs 2,627.8 crore and AUM (assets under management) rises 8.4% YoY to Rs 1.27 lakh crore.
Mphasis's Q4FY22 profit rises 9.6% QoQ to Rs 392.1 crore as the revenue rises 6.6% QoQ to Rs 3,316.8 crore. In FY22, the company's profit rises 17.6% YoY to Rs 1,430.9 crore.
Fineotex is falling despite its Q4FY22 profit rising 46% YoY to Rs 16.5 crore and revenues increasing by 56% to Rs 121.6 crore. India business revenues double YoY in Q4FY22 to Rs 101.7 crore. Fineotex’s FY22 revenue rises 58% YoY to Rs 373.7 crore and net profit increases by 29.4% to Rs 55.1 crore.
Ambuja Cements' Q4FY22 net profit declines 30.4% YoY to Rs 658.9 crore on rising fuel costs. Revenue rises 2.3% YoY to Rs 7,990.3 crore on the back of sales volume rising 3.4% YoY to 7.5 million tonnes per annum. EBITDA margin falls by 680 bps YoY to 20.5% as power and fuel expenses rise 34.5% YoY to Rs 2,072 crore.
Varroc Engineering surges as it signs a securities purchase agreement with a French firm Compagnie Plastic Omnium SE to divest its four-wheeler lighting systems operations in the US and Europe. The value of the transaction is 600 million euros. The company plans to divest its operations in the USA, Brazil, Mexico, Poland, Czech Republic, Germany, Turkey, and Morocco.
Biocon’s Q4FY22 net profit falls 4% YoY to Rs 283.9 crore despite a revenue increase of 20.9% to Rs 2,746 crore. Raw material costs rise 21% YoY to Rs 747.8 crore in Q4FY22. Generics segment revenue grows 26% YoY to Rs 717 crore on the back of new product launches in the US.
Axis Bank’s Q4FY22 net profit rises 54% YoY to Rs 4,118 crore with an increase in net interest income by 17% YoY to Rs 8,815 crore. Provisions fell 54% YoY to Rs 987 crore. Total advances grew 15% YoY to Rs 7.07 lakh crore with retail loans rising 21% YoY to Rs 4 lakh crore. The bank's asset quality improved with gross NPA falling 88 bps YoY to 2.8% and net NPA by 32 bps to 0.73%.

Riding High:

Largecap and midcap gainers today include General Insurance Corporation of India (130.15, 9.74%), Shriram Transport Finance Company Ltd. (1,202.05, 5.28%) and Max Healthcare Institute Ltd. (413.85, 4.26%).

Downers:

Largecap and midcap losers today include Axis Bank Ltd. (728.60, -6.57%), Indraprastha Gas Ltd. (352.40, -6.39%) and Bajaj Holdings & Investment Ltd. (5,169.45, -6.33%).

Volume Shockers

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

Top high volume gainers on BSE included General Insurance Corporation of India (130.15, 9.74%), Varroc Engineering Ltd. (444.45, 7.99%) and Shriram Transport Finance Company Ltd. (1,202.05, 5.28%).

Top high volume losers on BSE were Can Fin Homes Ltd. (592.15, -6.95%), Axis Bank Ltd. (728.60, -6.57%) and Gujarat Gas Ltd. (482.40, -5.80%).

Gillette India Ltd. (5,265.20, 3.18%) was trading at 22.4 times of weekly average. Prism Johnson Ltd. (114.10, 0.88%) and Shriram City Union Finance Ltd. (1,708.60, 3.53%) were trading with volumes 17.7 and 17.2 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

9 stocks overperformed with 52-week highs, while 1 stock was an underachiever and hit its 52-week lows.

Stocks touching their year highs included - Crisil Ltd. (3,684.45, 2.67%), GHCL Ltd. (619.25, 1.05%) and Mangalore Refinery And Petrochemicals Ltd. (73.75, 6.88%).

Stock making new 52 weeks lows included - Zomato Ltd. (71.75, -2.84%).

13 stocks climbed above their 200 day SMA including Laurus Labs Ltd. (583.35, 2.00%) and United Breweries Ltd. (1,585.90, 1.01%). 26 stocks slipped below their 200 SMA including Can Fin Homes Ltd. (592.15, -6.95%) and Axis Bank Ltd. (728.60, -6.57%).