Trendlyne Marketwatch    
23 May 2022
Market closes lower, Divi's Laboratories' Q4 profit rises 78.2% YoY to Rs 894.6 crore

Trendlyne Analysis

Nifty 50 gives up its intraday gains and closes in the red on a volatile day of trade. Nifty 50 rose over 3% last week after two straight weeks of losses amid mixed global cues. Asian indices closed mixed as investors continue to monitor the prevailing high inflation, rising interest rates, and supply chain disruptions. The tech-heavy US index, NASDAQ 100 closed 0.3% lower while S&P 500 and Dow Jones closed flat on Friday. The Dow Jones fell over 19% from its all-time high and closed in the red for the eighth consecutive week. Crude oil prices edge higher after steadying last week as demand is expected to rise as Shanghai prepares to lift stringent lockdowns after two months. European indices follow the Asian markets and trade higher than Friday’s levels.

Nifty Smallcap 100 and Nifty Midcap 100 closed in the red, following the benchmark index. Nifty Auto closed in the green while Nifty Metal closed over 8% lower than Friday’s levels after Centre imposed export duty on steel. Nifty IT closed in the green despite the tech-focused NASDAQ100 closing lower on Friday.

Nifty 50 closed at 16,214.70 (-51.5, -0.3%), BSE Sensex closed at 54,288.61 (-37.8, -0.1%) while the broader Nifty 500 closed at 13,835.80 (-59.3, -0.4%).

Market breadth is in the red. Of the 1,909 stocks traded today, 693 were on the uptrend, and 1,179 went down.

  • Sundaram Finance, TeamLease Services, Dhani Services, and Saregama India are trading with higher volumes as compared to Friday.

  • M&M sees a long build-up in its May 26 futures series as its open interest rises 12.9% with put to call ratio at 0.51.

  • Divi's Laboratories is falling despite a 78.2% YoY rise in its Q4FY22 profit to Rs 894.6 crore. The profit rises as EBITDA margins rise 342 bps to 42.9% on the back of a near 42% rise in revenues to Rs 2,570.8 crore.

  • Shree Cements is falling as its Q4FY22 net profit falls 17.7% YoY to Rs 657.2 crore even though revenue rises 3.9% YoY to Rs 4,501.6 crore. Profit is down on the back of power and fuel costs rising nearly 76% YoY to Rs 1,266.7 crore which led to the operating margin to contract by 8.4 percentage points to 21%.

  • eMudhra’s Rs 412.8-crore IPO gets bids for 96% of the available 1.1 crore shares on offer on the second day of bidding. The retail investor quota gets bids for 1.7X of the available 57.6 lakh shares on offer.

  • Edelweiss maintains a ‘Buy’ rating on Krishna Institute of Medical Sciences with a target price of Rs 1,832, indicating an upside of 45%. The brokerage is positive on the company on the back of its aggressive expansion plans in Nashik and Bangalore hospitals worth Rs 500 crore. The brokerage expects the company’s revenue to grow at a CAGR 31.2% over FY22-FY24.

  • Bharat Heavy Electricals is falling despite reporting Q4FY22 profit of Rs 912.5 crore against loss of Rs 1,036.3 crore in Q4FY21. The profit increases due fall in other expenses. Revenue rises 12.9% YoY to Rs 8,181.7 crore during the quarter. In FY22, the company reports profit of Rs 446 crore against loss of Rs 2,697.1 crore in FY21.

  • Mahindra Logistics is trading with more than seven times its weekly average trading volume. Sequent Scientific, Cochin Shipyard, Metro Brands, and Allcargo Logistics are trading at more than four times their weekly average trading volumes.

  • IT stocks like Tata Consultancy Services, Infosys, HCL Technologies, Wipro, and Tech Mahindra, among others, are trading in green. The broader sectoral index Nifty IT is also rising in trade

  • Amara Raja Batteries is falling as its Q4FY22 net profit falls 47.8% YoY to Rs 98.8 crore on the cost of materials consumed rising 10% YoY to Rs 2,064.1 crore. However, revenue rises 2.9% YoY to Rs 2,196.9 crore, driven by healthy sales volume growth of industrial batteries and robust demand in the automotive sector from the export markets.

  • Stocks like Bharti Airtel, ITC, Coal India, ABB India, and Pidilite Industries, among others, are outperforming their sector over the past month.

  • Nifty 50 sees a long build up in its May 26 futures series as its open interest rises 5.5% with put to call ratio at 1.12

  • Metal stocks like JSW Steel, Tata Steel, Hindalco Industries and Jindal Steel & Power , among others are falling in trade. The broader sectoral index Nifty Metal is also trading in the red.

  • Power Grid Corporation falls despite its Q4FY22 net profit rising 17.9% YoY to Rs 4,156.4 crore even though revenue rises marginally by 2.3% YoY to Rs 11,067.9 crore. Profit grows on the back of the company selling its stake in five of its subsidiaries and a deferred tax credit of Rs 911.5 crore. In FY22, net profit rises 39.8% YoY to Rs 16,824.1 crore and revenue rises 4.6% YoY to Rs 42,697.9 crore.

  • NTPC is rising at its Q4FY22 net profit rises 13.7% YoY to Rs 5,166.5 crore and revenue rises 19% YoY to Rs 37,724.4 crore. The maximum revenue growth came from the generation segment, rising 20.3% YoY to Rs 36,211.5 crore. The operating margin rises by 499 bps YoY to Rs 30.8% on higher revenue.

  • Narayana Hrudayalaya is falling as its Q4FY22 net profit increases marginally by 1.3% YoY to Rs 68.9 crore. However, revenues rise 12.3% YoY to Rs 950.5 crore as patient footfalls rise 8.7% to 5.1 lakh in its domestic hospitals. Revenues rise 43.1% YoY in FY22 to Rs 3,735.9 crore with its average revenue per patient rising 8% YoY to Rs 1.1 lakh.

  • Oil stocks like Reliance Industries, Bharat Petroleum Corporation, Hindustan Petroleum Corporation, among others are trading lower despite the Centre announcing a reduction in excise duty on petrol and diesel, on Saturday. The central excise duty on petrol will reduce by Rs 8 per litre and diesel will drop by Rs 6 per litre.

  • Indigo Paints is rising as its Q4FY22 net profit rises 39.1% YoY to Rs 34.6 crore. Revenue rises 13.7% YoY to Rs 290.9 crore mainly due to price hikes. Net profit rises 18.6% YoY in FY22 to Rs 84 crore and revenues increase by 26.1% to Rs 916.9 crore.

  • One97 Communications (Paytm) Q4FY22 contributing profit (revenue from operations minus direct costs) surges 210% YoY to Rs 539 crore. Revenue from operations rises 89% YoY to Rs 1,541 crore with major revenue growth in financial services & others. Financial services & others grow 342% YoY to Rs 168 crore. Paytm’s number of loans disbursed increases 374% YoY to 65 lakh worth Rs 3,553 crore. Paytm’s average monthly transacting users (MTU) rises 41% YoY to 7.1 crore.

  • Thermax is rising despite its Q4FY22 net profit falling 4.5% YoY to Rs 102.5 crore on the back of high commodity and freight costs. Raw material cost rises 53.7% YoY in Q4FY22 to Rs 1,250.3 crore. However, revenues rise 25.9% YoY to Rs 2,027.6 crore on the back of high growth in its energy segment. Net profit rises 51.1% YoY to Rs 312.3 crore in FY22 and revenues increase by 27.7% to Rs 6,255.3 crore.

  • Nifty Realty and Nifty Auto are rising as the Ministry of Finance levies export duty on 11 iron and steel intermediates. The imposition on the export duty of iron and steel products will reduce exports but ensure a higher supply of steel in India. With high supply and low steel prices, the clock may turn in favour of sectors like auto and real estate in reducing input costs.

Riding High:

Largecap and midcap gainers today include JSW Energy Ltd. (310.40, 5.81%), AIA Engineering Ltd. (1,892.95, 5.69%) and Adani Power Ltd. (327.85, 5.00%).

Downers:

Largecap and midcap losers today include Jindal Steel & Power Ltd. (395.55, -17.39%), JSW Steel Ltd. (547.55, -13.24%) and Tata Steel Ltd. (1,022.95, -12.61%).

Movers and Shakers

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

Top high volume gainers on BSE included Sequent Scientific Ltd. (131.25, 14.43%), Nilkamal Ltd. (2,091.65, 8.50%) and V Mart Retail Ltd. (3,316.45, 8.22%).

Top high volume losers on BSE were Jindal Stainless Ltd. (125.65, -18.09%), Jindal Steel & Power Ltd. (395.55, -17.39%) and JSW Steel Ltd. (547.55, -13.24%).

Mahindra Logistics Ltd. (473.65, 5.44%) was trading at 30.0 times of weekly average. Cochin Shipyard Ltd. (343.10, 5.96%) and Dhanuka Agritech Ltd. (719.65, -1.08%) were trading with volumes 9.4 and 8.4 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

6 stocks overperformed with 52-week highs, while 12 stocks were underachievers and hit their 52-week lows.

Stocks touching their year highs included - Adani Power Ltd. (327.85, 5.00%), Mangalore Refinery And Petrochemicals Ltd. (88.15, -4.96%) and Hindustan Aeronautics Ltd. (1,815.80, 3.33%).

Stocks making new 52 weeks lows included - JSW Steel Ltd. (547.55, -13.24%) and Lupin Ltd. (618.50, -3.12%).

25 stocks climbed above their 200 day SMA including Cochin Shipyard Ltd. (343.10, 5.96%) and JSW Energy Ltd. (310.40, 5.81%). 10 stocks slipped below their 200 SMA including Jindal Steel & Power Ltd. (395.55, -17.39%) and Equitas Small Finance Bank Ltd. (47.90, -8.85%).

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