Trendlyne Marketwatch    
18 May 2022
Market closes flat, Teamlease Services Q4 profit rises 61% YoY

Trendlyne Analysis

Indian indices closed flat after posting their highest daily gains in three months on Tuesday. Most Asian indices closed higher on Wednesday tracking the US indices, which closed sharply higher on Tuesday. The tech-heavy NASDAQ 100 rose 2.6% despite US Federal Reserve Chairman Jerome Powell’s hawkish remarks on Tuesday. Chairman Powell said the US central bank will keep raising interest rates until there is “clear and convincing” evidence that inflation is in retreat. Investors continue to monitor the prevailing high inflation levels, tightening monetary policies, and geopolitical crisis in Europe. In the last week, foreign investors have sold over Rs 11,328.5 crore worth shares of Indian companies. UK’s consumer price index or CPI rises 9% in April hitting a 40-year high.

Nifty Smallcap 100 and Nifty Midcap 100 closed lower despite the benchmark index closing flat. Nifty FMCG and Nifty Pharma closed higher than Tuesday’s levels. Nifty Metal, which rose over 6.8% on Tuesday, closed in the red. Nifty IT gave up its gains and closed lower, despite the NASDAQ 100 closing in the green on Tuesday.

Nifty 50 closed at 16,240.30 (-19, -0.1%), BSE Sensex closed at 54,208.53 (-109.9, -0.2%) while the broader Nifty 500 closed at 13,918.20 (-7.9, -0.1%)

Market breadth is in the green. Of the 1,876 stocks traded today, 1,013 showed gains, and 829 showed losses.

  • Dhani Services, Glenmark Life Sciences, Phoenix Mills, and Finolex Cables are trading with higher volumes as compared to Tuesday.

  • Dr. Lal Pathlabs sees a short build-up in its May 26 futures series after it announces Q4FY22 results. Its open interest rises 10.4% with put to call ratio at 0.51

  • Garments & apparel company Gokaldas Exports surges and hits an all-time high of Rs 519.9 on robust quarterly performance, growing order book and its ability to deal with supply-chain disruptions. The company’s net profit is up 2.8X to Rs 61 crore while revenues jump 58% YoY to Rs 588 crore for Q4FY22.

  • Teamlease Services Q4FY22 profit rises 61% YoY to Rs 31.6 crore and revenue rises 35% YoY to Rs 1,822 crore. In FY22, profit falls 49.7% to Rs 39.5 crore as employee benefits and other expenses increase.

  • Ruchi Soya surges as it announces acquisition of food retail business of Patanjali Ayurved for Rs 690 crore. It will also acquire manufacturing plants of Patanjali at Padartha, Haridwar, and Newasa. The acquisition is likely to be complete by July 15. The company also plans to change its name from Ruchi Soya Industries Limited to Patanjali Foods Limited, subject to approval from regulatory authorities.

  • Sugar stocks like Uttam Sugar Mills, Rajshree Sugars & Chemicals, Triveni Engineering & Industries, and Piccadily Agro Industries among others are rising in trade as cabinet advances 20% ethanol blending target In petrol to 2025-26 from 2030

  • Ethos’ Rs 472.3- crore IPO gets bids for 22% of the available 39.8 lakh shares on offer on the first day of bidding. The retail investor quota gets bids for 43% of the available 19.6 lakh shares on offer. The public offer comprises of a fresh issue up to Rs 375 crore as well as an offer for sale of up to Rs 97.3 crore.

  • Paradeep Phosphates’ Rs 1,501.7-crore IPO gets bids for 42% of the available 26.8 crore shares on offer on the second day of bidding. The retail investor quota gets bids for 81% of the available 13.1 crore shares on offer.

  • Edelweiss maintains a ‘Buy’ rating on Brigade Enterprises with a target price of Rs 605, indicating an upside of 40%. The brokerage has a positive outlook on the company on the back of strong demand in residential segment and a rise in occupancy rate in the commercial space. The brokerage expects the company’s revenue to grow at a CAGR of 9.2% over FY22-FY24.

  • Tube Investments of India is trading with more than 14 times its weekly average trading volume. Sudarshan Chemical Industries, Wockhardt, NOCIL, and Galaxy Surfactants are trading at more than five times their weekly average trading volumes.

  • Avenue Supermarts, Bandhan Bank, PI Industries, and Coforge, among others, are rising over the past week after announcing their Q4FY22 results

  • DLF's Q4FY22 profit falls 15.7% YoY to Rs 405.3 crore and revenue falls 13.35% YoY to Rs 1,652.1 crore. In FY22, net profit rises 37.24% to Rs 1,500.9 crore on the back of increasing demand across segments and geographies. The Board recommends interim dividend of Rs 3 per share.

  • Metropolis Healthcare and Hindustan Petroleum Corporation touch 52-week low of Rs 1,766.1 and Rs.283.3 respectively. Both stocks are falling for three consecutive sessions.

  • S&P Global Ratings cuts India’s growth projection for FY23 to 7.3% from 7.8% on rising inflation and the extension of the ongoing geopolitical conflict. High inflation for a long duration may require central banks to raise rates affecting output and employment.

  • Acrysil is falling despite its Q4FY22 net profit rising 24.1% YoY to Rs 16.5 crore and revenues increasing by 33.9% YoY to Rs 141.1 crore. Raw material costs rise 71.2% YoY in Q4FY22 to Rs 52,2 crores and total expenses increase by 38% to Rs 119 crore. Net profit rises 65.5% YoY in FY22 to Rs 65.3 crore and revenues increase by 55.4% to Rs 494 crore.

  • NOCIL is rising as Q4FY22 profit rises 84.6% YoY to Rs 68.92 crore and revenue rises 43.7% YoY to Rs 462.74 crore. In FY22, profit rises 99.2% to Rs 176.11 crore.

  • Indian Oil Corporation falls as its Q4FY22 net profit is down 26.3% YoY to Rs 6,645.7 crore because of a jump in deferred tax expense by 1.4X YoY to Rs 160.4 crore. Revenue increases 25.9% YoY to Rs 2.1 lakh crore. Revenue from petroleum products rises 25.9% YoY to Rs 1.9 lakh crore in Q4FY22. The company’s FY22 revenue rises 41.5% YoY to Rs 7.28 lakh crore (without GST), the highest standalone revenue given out by an Indian Company.

  • Dr. Lal Pathlabs is falling as its Q4FY22 net profit declines 26.5% YoY to Rs 61.3 crore. However, revenue rises 11.9% YoY to Rs 495.5 crore as its non-Covid revenue increases by 12.2% YoY to Rs 419.7 crore. Operating profit margin decreases 280 bps YoY in Q4FY22 to 25.2% on the back of high employee benefit expenses and finance costs.

  • Premium watch retailer Ethos raises Rs 141.6 crore from investors by selling 16.1 lakh equity shares at Rs 878 per share to nine anchor investors. Investors include ICICI Prudential Flexi Cap Fund, Jupiter India Fund, Saint Capital Fund, UPS Group Trust, Nomura Singapore, among others.

  • Minda Corp is rising as its Q4FY22 profit jumps 5.9 times YoY to Rs 75.9 crore and revenues rise by 18.9% YoY to Rs 952.3 crore. Net profit jumps mainly due to a tax credit of Rs 22 crore related to earlier years. Net profit jumps 3.6 times YoY in FY22 to Rs 191.9 crore and revenues rise by 24.9% to Rs 3,000.1 crore.

  • Bharti Airtel’s Q4FY22 net profit jumps 1.4X QoQ to Rs 2,008 crore. Revenue increases 5.4% QoQ to Rs 31,500 crore because of a 20% tariff hike taken in November 2021. Revenue from home services rises 10% QoQ to Rs 876.2 crore and mobile services (India) increases 9.5% to Rs 17,616.8 crore. The operating margin is up 3.1 bps QoQ to 23.7%. The company recommends a dividend of Rs 3 per fully paid-up equity share and Rs 0.75 per partly paid-up equity share for FY22.

Riding High:

Largecap and midcap gainers today include Ruchi Soya Industries Ltd. (1,187.85, 9.60%), Adani Power Ltd. (294.70, 4.99%) and Petronet LNG Ltd. (223.50, 4.88%).

Downers:

Largecap and midcap losers today include Dr. Lal Pathlabs Ltd. (2,051.95, -6.07%), Indian Oil Corporation Ltd. (118.05, -5.10%) and Hindustan Petroleum Corporation Ltd. (243.65, -4.77%).

Movers and Shakers

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

Top high volume gainers on BSE included Sudarshan Chemical Industries Ltd. (509.70, 19.34%), Wockhardt Ltd. (283.25, 15.78%) and Great Eastern Shipping Company Ltd. (440.90, 10.85%).

Top high volume losers on BSE were Route Mobile Ltd. (1,288.30, -14.66%), Metropolis Healthcare Ltd. (1,753.45, -9.28%) and Dr. Lal Pathlabs Ltd. (2,051.95, -6.07%).

Tube Investments of India Ltd. (1,669.30, -1.39%) was trading at 18.1 times of weekly average. Galaxy Surfactants Ltd. (2,687.80, 3.34%) and NOCIL Ltd. (254.35, 4.54%) were trading with volumes 7.2 and 7.0 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

5 stocks made 52-week highs, while 9 stocks hit their 52-week lows.

Stocks touching their year highs included - Coromandel International Ltd. (929.50, -1.41%), Great Eastern Shipping Company Ltd. (440.90, 10.85%) and Mangalore Refinery And Petrochemicals Ltd. (89.35, 9.97%).

Stocks making new 52 weeks lows included - Bharat Petroleum Corporation Ltd. (331.90, -3.08%) and Hindustan Petroleum Corporation Ltd. (243.65, -4.77%).

28 stocks climbed above their 200 day SMA including Praj Industries Ltd. (369.80, 7.03%) and Petronet LNG Ltd. (223.50, 4.88%). 5 stocks slipped below their 200 SMA including Indian Oil Corporation Ltd. (118.05, -5.10%) and Prestige Estates Projects Ltd. (426.55, -4.69%).

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