1. Ashok Leyland: This truck manufacturer’s stock touched its all-time high of Rs 169.4 on Tuesday and rose by 11.8% over the past month till Thursday. The surge in stock price comes on the back of a robust business outlook and a major deal win. This month, the company bagged orders worth $75 million to supply 1,400 buses in the UAE. This is the largest order for buses it has received in the UAE to date.

The company’s total wholesales for the month of August rose by 51% YoY, mainly driven by the surge in demand for trucks and buses. The management says the company’s diverse product portfolio mix and robust distribution network led to an increase in sales and market share. The firm’s domestic market share in trucks improved by 490 bps YoY to 31.1% in Q1. This healthy performance helped the stock make it to this screener which lists companies that outperformed their industry in the past 90 days.

The management expects the demand environment to improve due to increasing construction, infrastructure and mining activities. It also expects the re-opening of schools, colleges and offices to improve demand for buses. The light commercial vehicle segment’s sales volume will continue to grow on rising demand from the e-commerce and agriculture sectors. The street largely holds a bullish outlook for the stock, with a consensus recommendation of ‘Strong Buy’. According to KRChoksey, the company’s pipeline of new product launches will help increase its market share. The management anticipates better profitability in the coming quarters on softening commodity prices and a robust demand environment.

2. Federal Bank: This bank's stock rose 9% in trade on Monday on speculative reports of the bank merging with another private bank. However, the bank denied the news and called it speculative. The stock tanked 8% after the bank issued this clarification. However, this did not affect the stock’s overall performance as it shows up in a screener where it is outperforming its industry by 14.2% in the past 90 days. It also shows up on the screener identifying stocks where FIIs increased their holding.

In a recent interview, the bank’s CEO Shyam Srinivasan said that rupee depreciation has helped improve the bank’s NRI (non-resident Indians) funds account. 21% of India’s remittances are now coming in through the bank. He also adds that earlier these funds were just lying with the bank, but now, the activity in these accounts has improved with investments into properties and other finances. He expects remittances to improve in the upcoming quarter. 

Recently brokerage Nirmal Bang gave a ‘Buy’ rating for this stock as its retail loan AUM (assets under management) improve to 55% in Q1FY23. It also expects asset quality to improve. What impressed the brokerage was the corrective measures taken by the bank to disburse small ticket-sized corporate loans to counter risk. The bank also reported an improved net interest margin to 3.2% in Q1FY23. However, the brokerage believes that the bank should have a higher contingency buffer. Trendlyne’s consensus recommendation saw 21 brokerages recommending a ‘Buy’ on the stock in September.

3. Brigade Enterprises: This realty stock hit its all-time high of Rs 575.4 on Wednesday and has been on an upswing since announcing its Q1FY23 results on August 2. The company’s net profit rose over 4X YoY to Rs 87.7 crore beating Trendlyne’s Forecaster estimates by 161%. Its sales bookings in the residential segment jumped 70% YoY in the same period. The realty firm benefitted from the resurgence in demand for housing, office spaces, and travel as it is present in the residential, commercial, retail, and hospitality segments.

The management expects a favourable demand environment to continue over the coming quarters, and to meet this demand it has added projects worth Rs 500 crore in H2CY22. It plans to add more projects in the remainder of FY23. The company has been funding these projects from the proceeds from its qualified institutional placement (QIP), through which it raised approx Rs 500 crore. This has helped it maintain strong cash flows and a healthy balance sheet. It shows up on this screener which lists companies whose cash flows from operations have been consistently improving over the past two years.

Going forward, the management anticipates leasing out 1.7 million square feet of vacant space by the end of FY23. It expects the growth in rental income to be driven by a rise in demand for office space and retail space. The recovery in rental income will help reduce the risk associated with the residential segment, it added. In the coming years, the company plans to focus on increasing its presence in newer markets, specifically in the residential and commercial segments.

4. Angel One: The stock of this broking company jumped nearly 14% after it released its business update for August 2022. The company also outperformed the Nifty 500 index by roughly 15 percentage points in the past week. Angel One acquired 4.5 lakh new clients in the month gone by, up by over 28% on a MoM basis. This is especially noteworthy as the company’s client acquisition run rate had fallen to 3.4 lakh clients in June and July after peaking in May.

The average daily  orders rose to over 36 lakh after continuously falling between February and July owing to tepid market activity and bearish sentiment. The Indian markets came alive in August backed by renewed investment fervor especially among foreign institutional investors. The FIIs pumped in roughly Rs 54,000 crore in the Indian equity markets in August, highest since December 2020. Higher market activity also caused Angel One’s average daily turnover to rise over 20% MoM across its product segments. However, the company ended up losing market share in the derivatives segment while it gained over 3% share in the commodities segment. Angel One now holds over 50% market share in the upcoming commodities segment. 

The company now has a client base of over 11 crore and its management is confident that strong client acquisition growth will continue, backed by higher participation of millennials in the markets. Prabhakar Tiwari, Chief Growth Officer, Angel One believes that the total number of demat accounts in the country will cross the 20 crore mark over the next three to four years, doubling from current levels. The company is also in the process of deploying its ‘Super App’ to deliver a personalised investment experience. Angel One beat consensus estimates of analysts in Q1FY23 and is all set to clock over 20% topline growth in FY23.

5. One97 Communications (Paytm): This internet company re-appointed Vijay Shekhar Sharma as its MD & CEO in the last week of August. According to reports, it looks like the CEO is on borrowed time to convert its books to black, given the stock lost 60% of its value since its IPO in November 2021 and investors were not happy.

However, recently Paytm has been in the news for entirely different reasons. The stock fell 2.5% on September 3 after the ED raided the premises of Paytm along with Razorpay and Cashfree, on suspicion of a loan racket run around by Chinese nationals. According to reports, ED seized some Rs 17 crore worth of funds in the form of merchant IDs and bank accounts. Although the company gave an official clarification saying that none of the funds frozen by ED belongs to Paytm or its group companies, the investors are yet to gain their trust back in the stock. 

On September 6, the company published its monthly operational update. Given that the Reserve Bank of India (RBI) has banned Paytm from onboarding new customers, its monthly transacting users (MTU) are still up in August. However, this is just an 11.3% increase since the ban. The number of loans disbursed increased 246% YoY while gross merchandise value is up 72%. The management says that it is seeing a lot of upsell opportunities in this business. Paytm will have to focus on getting the maximum out of its existing users, given that it will take at least 3-5 months for the RBI to take a call on the imposed ban.

Trendlyne's analysts identify stocks that are seeing interesting price movement, analyst calls, or new developments. These are not buy recommendations.