Trendlyne Marketwatch
Trendlyne Marketwatch
26 Jul 2022
Market closes lower, Asian Paints' Q1 net profit surges 78.9% YoY to Rs 1,016.9 crore

Trendlyne Analysis

Indian indices closed in the red, with the volatility index, India VIX, rising above 18%. Nifty 50 fell close to 150 points and closed below the 16,500 mark. Most European stocks traded lower than Monday’s levels amid mixed global cues. However, FTSE 100 traded higher on the back of positive earnings updates. Major Asian indices closed mixed, tracking the US indices, which also closed mixed on Monday. US stocks closed mixed as investors look ahead to the crucial US Federal Reserve meeting this week. The tech-heavy index, NASDAQ 100 closed 0.6% lower, while the Dow Jones rose 0.3%. Brent crude oil futures rose as Russia’s reduction in gas supply to Europe could encourage a switch to crude oil.

Nifty Smallcap 100 and Nifty Midcap 100 closed in the red, following the benchmark index. Nifty Metal and Nifty Realty closed lower than Monday’s levels. Nifty IT closed in the red, tracking the NASDAQ 100, which closed lower on Monday.

Nifty 50 closed at 16,483.85 (-147.2, -0.9%), BSE Sensex closed at 55,268.49 (-497.7, -0.9%) while the broader Nifty 500 closed at 14,141.45 (-138.1, -1.0%)

Market breadth is moving down. Of the 1,890 stocks traded today, 487 showed gains, and 1,352 showed losses.

  • Solara Active Pharma Sciences, Rossari Biotech, Nuvoco Vistas Corp, Motilal Oswal Financial Services, and Chemplast Sanmar are trading with higher volumes as compared to Monday.

  • Bajaj Finserv sees a long build-up in its July 28 future series as its open interest rises 15.2% with a put-call ratio of 0.71.

  • Stocks like Aegis Logistics, Timken India, Shriram Transport Finance Co, Kajaria Ceramics and Can Fin Homes are in the overbought zone, according to the technical indicator relative strength index or RSI and money flow index or MFI.

  • Bajaj Auto’s Q1FY23 net profit rises marginally by 0.6% YoY to Rs 1,163.3 crore. Its revenue increases 8.4% YoY to Rs 8,004.9 crore because of a favourable product mix. EBITDA margin rises 100 bps to 16.6% as three-wheeler wholesales rise.

  • Asian Paints is rising as its Q1FY23 net profit surges 78.9% YoY to Rs 1,016.9 crore and revenue increases 54.1% YoY to Rs 8,606.9 crore. Revenue grows on the back of robust sales volume growth and rising consumer demand. EBITDA margin rises 172 bps YoY to 18.1% despite the cost of materials consumed rising 34.6% YoY to Rs 4,610.3 crore.

  • India's crude oil imports rise 20.8% YoY to 19.2 million tonnes in June 2022. This is the highest quantity of import of crude oil since July 2021. However, LPG imports fall 5.9% YoY in June 2022.

  • IDBI Capital maintains its ‘Buy’ rating on Finolex Industries with a target price of Rs 195, indicating an upside of 39%. Even though the company’s net profit declined 31.8% in Q1FY23, the brokerage expects the company to perform well in the coming quarters. It remains positive on the company’s prospects given its backward integration operations, healthy balance sheet and strong positioning in the domestic agricultural-pipes market. The brokerage estimates the company’s revenue to grow at a CAGR of 6.1% over FY22-24.

  • Jindal Stainless’ Q1FY23 net profit rises 7.7% YoY to Rs 329.4 crore despite EDITDA margin falling 360 bps YoY to 21.2%. This is because finance costs fell 17.3% YoY to Rs 72.1 crore. Revenue increases by 35.7% YoY to Rs 5,474.1 crore.

  • JP Morgan initiates coverage on Sona BLW Precision Forgings with an ‘underweight’ rating and a target price of Rs 485. The brokerage expects its revenue mix to drive revenue growth of 32% CAGR over FY22-25. However, the downside risk is the low margins in the near term. It also expects revenue for FY23-24 to be 7%-9% below consensus estimates.

     

  • Vinati Organics is trading with more than 13 times its weekly average trading volume. Tanla Platforms, EIH, Delta Corp, and Sapphire Foods India are trading at more than four times their weekly average trading volumes.

  • Lupin gets USFDA approval for its generic drug for treatment of high blood pressure. The company estimates an annual sale of $101 million in the US market for this tablet. The medicine will be manufactured in Lupin’s Nagpur plant.

  • Indian Energy Exchange is falling despite its Q1FY23 net profit rising 10% YoY to Rs 69.1 crore and revenue growing 8% YoY to Rs 98.3 crore. Electricity volumes on the exchange rise 10% YoY to 23.4 billion units driven by an increase in electricity consumption. EBITDA margin rises 20 bps YoY to 82.4%.

  • PSP Projects receives new work orders worth Rs 257.27 crore. The orders include development of Ahmedabad airport in the institutional segment worth Rs 128.01 crore, pharmaceutical project in the industrial segment worth Rs 98.99 crore, and remaining orders worth Rs 30.26 crore are from the precast segment.

  • GlaxoSmithKline Pharmaceuticals’ Q1FY23 net profit rises 8.3% YoY to Rs 116.2 crore as revenue rises 3.7% YoY to Rs 745.1 crore. Cost of raw materials falls 3.1% to Rs 286.9 crore. EBITDA margin rises 203 bps YoY to 56.4%.

  • Agriculture commodity prices fall with wheat and cotton leading the pack. In the last three months, cotton is down 31%, while wheat is down 28%. Corn prices are down 20% month-to-date in July.

  • IT stocks like MphasiS, L&T Technology Services, MindTree, and Infosys, among others, are falling in trade. The broader sectoral index Nifty IT is also trading in red.

  • Tata Steel is falling as its Q1FY23 net profit declines 12.8% YoY to Rs 7,765 crore as the cost of materials consumed increases 64.1% YoY to Rs 26,319.9 crore. Input costs increase due to elevated coking coal prices. However, revenue rises 18.8% YoY to Rs 63,430.1 crore driven by high steel realisations in India and Europe. Revenue from Tata Steel India grows 15.6% YoY to Rs 32,021.1 crore and Tata Steel Europe increases 33.5% YoY to Rs 25,960.9 crore.

  • Jefferies maintains its ‘Buy’ rating on Zomato with a target price of Rs 100, indicating an upside of more than 50%. It believes the company is moving toward better unit economics and that it will break even in the foreseeable future

  • Bajaj Finserv is rising as its board of directors will consider sub-division of shares and/or a bonus issue of shares in its meeting on Thursday. The board will also consider the company’s Q1FY23 results for approval in the same meeting.

  • Tech Mahindra is falling as its Q1FY23 net profit falls nearly 25% QoQ to Rs 1,131.6 crore despite revenue rising 4.9% QoQ to Rs 12,707.9 crore. The profit was hurt by a 8.3% QoQ rise in its employee costs to Rs 6,550 crore. EBIT margin came in at 11%, down 360 bps QoQ. New deal wins in Q1FY23 were $802 million, down 20.7% QoQ.

  • Axis Bank’s Q1FY23 net profit jumps 91% YoY to Rs 4,125.3 crore as provisions fall 75% YoY to Rs 777 crore. Net interest income rises 21% YoY to Rs 9,384 crore with net interest margin improving 14 bps YoY to 3.6%. Revenue from retail banking rises 17% YoY to Rs 19,631.6 crore while revenue from corporate and wholesale banking increases 23% to Rs 7,336.7 crore. Asset quality improves as gross NPAs fall 109 bps YoY to 2.7% in Q1FY23.

Riding High:

Largecap and midcap gainers today include Bajaj Finserv Ltd. (13,313.00, 5.50%), Sun TV Network Ltd. (465.80, 5.22%) and JSW Steel Ltd. (597.75, 2.09%).

Downers:

Largecap and midcap losers today include Zomato Ltd. (41.65, -12.50%), One97 Communications Ltd. (698.90, -7.80%) and Persistent Systems Ltd. (3,333.95, -7.56%).

Movers and Shakers

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

Top high volume gainers on BSE included EIH Ltd. (155.00, 7.56%), Bajaj Finserv Ltd. (13,313.00, 5.50%) and Sun TV Network Ltd. (465.80, 5.22%).

Top high volume losers on BSE were Tanla Platforms Ltd. (730.60, -20.00%), Zomato Ltd. (41.65, -12.50%) and GlaxoSmithKline Pharmaceuticals Ltd. (1,465.25, -2.04%).

Vinati Organics Ltd. (2,184.45, 3.07%) was trading at 15.7 times of weekly average. Delta Corp Ltd. (193.05, 4.58%) and Sapphire Foods India Ltd. (1,133.90, 2.73%) were trading with volumes 8.2 and 5.8 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

7 stocks overperformed with 52-week highs, while 5 stocks were underachievers and hit their 52-week lows.

Stocks touching their year highs included - ITC Ltd. (302.45, 0.45%), Timken India Ltd. (2,896.15, 0.18%) and Vinati Organics Ltd. (2,184.45, 3.07%).

Stocks making new 52 weeks lows included - Sterlite Technologies Ltd. (133.20, -6.76%) and Tanla Platforms Ltd. (730.60, -20.00%).

9 stocks climbed above their 200 day SMA including EPL Ltd. (184.85, 2.67%) and Navin Fluorine International Ltd. (4,242.35, 0.81%). 23 stocks slipped below their 200 SMA including Angel One Ltd. (1,349.35, -4.58%) and Narayana Hrudayalaya Ltd. (628.60, -3.74%).

 
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