Trendlyne Marketwatch    
10 Aug 2022
Market closes flat, Tata Chemicals’ Q1 profit surges 2X YoY to Rs 589 crore

Trendlyne Analysis

Indian indices closed flat after gyrating between losses and gains on a volatile day of trade. European indices followed the global trend and traded lower than Tuesday’s levels. Major Asian indices closed in the red, tracking the US indices which closed lower on Tuesday. US stocks fell as investors look ahead to the US inflation print release scheduled later today. The tech-heavy index, NASDAQ 100 fell 1.2% while the S&P 500 closed 0.4% lower. Brent crude oil futures traded lower after a volatile day of trade on Tuesday. Tight crude oil supply due to the geopolitical crisis, and fears of slow economic growth remain the key factors affecting the crude oil price.

Nifty Smallcap 100 and Nifty Midcap 100 closed in the red, despite the benchmark index closing flat. Nifty Metal and Nifty Auto closed higher than Monday’s levels. Nifty IT closed lower, taking cues from the NASDAQ 100, which fell 1.2% on Tuesday.

Nifty 50 closed at 17,534.75 (9.7, 0.1%), BSE Sensex closed at 58,817.29 (-35.8, -0.1%) while the broader Nifty 500 closed at 14,985.80 (-7.6, -0.1%)

Market breadth is in the red. Of the 1,897 stocks traded today, 772 showed gains, and 1,080 showed losses.

  • Crisil, Thermax, SIS, and Carborundum Universal are trading with higher volumes as compared to Monday.

  • Tata Chemicals sees a long build-up in its August 25 future series as its open interest rises 49.9% with a put-call ratio of 0.88.

  • Tata Power is rising in trade as the company will set up EV charging points across JP Infra’s residential projects in order to promote sustainable mobility in Mumbai.

  • Stocks like ZF Commercial Vehicle Control Systems India, Pidilite Industries, Bajaj Finance, IDFC First Bank, and Adani Enterprises are in the overbought zone, according to the technical indicator relative strength index or RSI.

  • Apollo Hospitals Enterprise is rising as it acquires a hospital facility in Gurugram, Haryana. It acquires the asset from Nayati Healthcare for a total consideration of Rs 450 crore. This hospital facility is situated in the hospital zoned land, with a potential of 650 beds spread across 7 lakh square feet. The integrated healthcare complex is set to be commissioned in a span of 24 months.

  • Public sector banks like State Bank of India, Punjab National Bank, Indian Overseas Bank, Union Bank of India and Bank of India are falling in trade. The broader sectoral index Nifty PSU Bank is also trading in the red.

  • Hindalco is rising as its Q1FY23 net profit rises 47.8% YoY to Rs 4,119 crore as revenue from Novelis (subsidiary of Hindalco), aluminium (both upstream and downstream) and copper segments rise. Novelis’ revenue grew 38% YoY because of better product pricing and a favourable product mix. The company’s net debt falls 23% YoY in Q1.

  • ICICI Securities maintains its ‘Buy’ rating on Indraprastha Gas with a target price of Rs 540. This indicates an upside of 50.4%. The brokerage expects a growing addressable market, cost pass-through mechanisms and rising demand will support strong sales volume growth in the coming quarters. It estimates the company’s revenue to grow at a CAGR of 12% over FY22-24.

  • Tata Chemicals is trading with more than ten times its weekly average trading volume. City Union Bank, Galaxy Surfactants, G R Infraprojects, and Fine Organic Industries are trading at more than seven times their weekly average trading volumes.

  • NBCC (India) is rising in trade after it bags three work orders worth Rs 258 crore. This includes a Memorandum of Understanding (MOU) with the Centre’s Ministry of External Affairs for redevelopment of an old housing complex in New Delhi.

  • Tata Chemicals is rising as its net profit surges 2X YoY to Rs 589 crore on the back of higher realisations across all its business verticals. Profit rises as strong demand and higher realisations offset elevated raw material, logistics, and energy costs. Revenue rises 34.2% YoY to Rs 3,995 crore on the back of robust demand for soda ash across geographies. EBITDA margin rises 500 bps YoY to 25%.

  • AIA Engineering hits a 52-week high of Rs 2,650 as its Q1FY23 net profit rises 27.6% YoY to Rs 190.4 crore. Revenues surge 45% YoY because of improved supply-chain and customer demand. However, its freight outward expenses are on a higher side as it rose 72% YoY, but the management expects the prices to cool off in the coming quarters. The company expects capex of Rs 300 crore in FY23 which includes projects like Mill Lining and hybrid and solar power project.

  • EKI Energy is falling after India's Minister for New and Renewable Energy RK Singh says India will not allow export of carbon credits till its commitment of cutting carbon emission intensity of its GDP by 45% is met.

  • Indian Hotels is rising as its net profit jumps 2.3X QoQ to Rs 170.1 crore. Profit rises as a surge in demand leads to occupancy rates and average room rates exceeding pre-Covid levels. Revenue grows 45.2% QoQ to Rs 1,266.1 crore driven by a rise in revenue from room and food & beverage services. EBITDA margin in Q1FY23 rises by 11.4 percentage points to 31.3% over the pre-pandemic levels of Q1FY20.

  • JSW Energy's arm JSW Neo Energy agrees to acquire a portfolio of 1,753 MW of renewable energy generation capacity from Mytrah Energy for Rs 10,531 crore

  • One97 Communications (Paytm) partners with Piramal Capital & Housing Finance (Piramal Finance) to offer loans to merchants and small businesses. This partnership will enable Paytm to expand its loan distribution to small cities and towns of India. Paytm plans to disburse loans worth Rs 10 lakh with a repayment period of 6-24 months.

  • All IT stocks are trading in the red. Stocks like Infosys, HCL Technologies, Wipro, Tech Mahindra and Larsen & Toubro Infotech are down by more than 1.5%. The broader sectoral index Nifty IT is also falling in trade.

  • Delhivery is falling as its Q1FY23 net loss widens to Rs 399 crore compared to Rs 129.5 crore in Q1FY22. The management attributes this to one-time events like spends on increase in capacity, rise in fuel prices, rent and wages. The company’s freight handling and servicing costs are up 67% and depreciation expenses surge 2.2X YoY. However, revenue increases 32.5% to Rs 1,745 crore as the number of express parcel shipments goes up. Revenue from services increases with cross-border services revenue increasing 53% YoY.

  • Power Grid Corp of India is falling as its net profit declines 36.6% to Rs 3,801.2 crore. Profit falls due to rising employee benefit expenses and other expenses. Revenue grows 6.7% YoY led by the transmission segment’s revenue rising 5.9% YoY to Rs 10,703 crore. The company’s revenue from the consultancy and telecom segments increases by 50.6% and 60.2%, respectively. Its operating margin falls 327 bps YoY to 84.8%.

  • Adani Ports and SEZ's Q1FY23 net profit is down 16% YoY to Rs 1,072.4 crore due to a 3.1X surge in forex losses (Rs 1,201.1 crore). Revenue rose marginally by 0.7% YoY. The management is positive about future growth as it plans to commission two more terminals for cargo handling. Its Q1FY23 cargo volumes were up 8% YoY.

Riding High:

Largecap and midcap gainers today include Indraprastha Gas Ltd. (379.80, 5.87%), Hindalco Industries Ltd. (440.10, 4.44%) and Adani Power Ltd. (339.75, 3.39%).

Downers:

Largecap and midcap losers today include Oil India Ltd. (186.90, -5.58%), MRF Ltd. (83,466.60, -4.85%) and 3M India Ltd. (22,750.30, -4.11%).

Volume Rockets

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

Top high volume gainers on BSE included Fine Organic Industries Ltd. (6,737.85, 15.63%), Tata Chemicals Ltd. (1,074.15, 12.24%) and JK Paper Ltd. (422.60, 8.67%).

Top high volume losers on BSE were Natco Pharma Ltd. (672.85, -10.35%), Suven Pharmaceuticals Ltd. (439.00, -8.64%) and 3M India Ltd. (22,750.30, -4.11%).

City Union Bank Ltd. (176.70, 8.54%) was trading at 12.9 times of weekly average. G R Infraprojects Ltd. (1,405.85, 6.23%) and Galaxy Surfactants Ltd. (3,228.45, 2.43%) were trading with volumes 9.9 and 9.8 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

24 stocks made 52-week highs, while 2 stocks were underachievers and hit their 52-week lows.

Stocks touching their year highs included - Aegis Logistics Ltd. (283.45, -1.60%), AIA Engineering Ltd. (2,582.00, 7.80%) and Bharat Electronics Ltd. (287.40, 1.97%).

Stocks making new 52 weeks lows included - Alembic Pharmaceuticals Ltd. (652.85, -1.64%) and Zensar Technologies Ltd. (234.55, 2.27%).

15 stocks climbed above their 200 day SMA including NCC Ltd. (66.30, 4.16%) and Narayana Hrudayalaya Ltd. (681.10, 3.25%). 24 stocks slipped below their 200 SMA including Avanti Feeds Ltd. (463.95, -9.51%) and eClerx Services Ltd. (2,144.00, -6.97%).

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