1. KEC International: This heavy electrical company stock started the week with a 9% surge, but fell 3% on Tuesday. However, it rose 5% on Wednesday after it bagged an order worth Rs 1,108 crore, according to a filing released by the company. The order contains projects in transmission and distribution, as well as oil & gas in India, the Middle East, and Africa. This is the second big order recently won by the company, following an order worth Rs 1,313 crore on August 16.

Despite a robust order book and the stock price rising 21.8% in the past 90 days, this stock shows up on the screener of stocks underperforming their industries. KEC International is underperforming the heavy electrical equipment industry by 8.5% in the past 90 days.

However, brokerages like ICICI Direct and ICICI Securities are enthusiastic about the new order book and maintain a ‘Buy’ rating on the stock. Trendlyne’s consensus recommendation shows 14 analysts who recommend a ‘Buy’ rating on the stock. The management also says that they expect order growth of 15% for FY23. But the major concern about the increase in the net working capital (NWC) cycle remains. However, KEC management says that with the diversification into railways, civil, and oil and gas pipelines, the NWC will reduce to 130-135 days by Q4FY23 from 148 days in Q1FY23.

2. Dixon Technologies (India): This consumer electronics manufacturer’s stock rose 4% in intra-day trade on Tuesday. The rise came after its subsidiary Padget Electronics received approval for the disbursement of incentives worth Rs 53.3 crore under the production-linked incentive (PLI) scheme. The company will be receiving incentives for the manufacturing of mobile phones. In fact, it is the first company under this scheme to receive approval for the disbursement of funds from the government, as it achieved the investments and revenue targets set by the government.
   
   The management is looking to capitalize on the centre’s push for manufacturing in India, as it has received approval under five PLI schemes, for LED components, IT hardware, mobile phones, air conditioners, and wearables & hearables. This has led to the stock making it to this screener which lists companies benefitting from PLI schemes. 
   
   Dixon’s net profit in Q1FY23 surged by 151.6% YoY, driven by the mobile and consumer electronic manufacturing services segments. The management expects the mobile segment to drive revenue growth in the coming quarters in FY23, as it expects orders from Motorola and Samsung to rise. It also plans to increase production volumes in all its business verticals, as demand is expected to increase on rising orders and customer acquisition. The company has planned a capex outlay of Rs 310-320 crore for the rest of FY23. It intends to use this capital to expand production capacity, invest in PLI-related schemes and diversify its product portfolio mix. Overall, the firm aims to increase its total production capacity by 40% by the end FY23.
   
    
3. Bharat Electronics: This defence electronics company hit its life high in five of the last ten trading sessions. The stock is up 36% since it announced its Q1FY23 results in July. With the stock price hitting multiple life highs, the company comes up in a screener that lists stocks with strong momentum and current price above short, medium, and long-term moving averages.

This Navratna public sector company held an investor outreach program from September 12-15, where the company reiterated its revenue growth guidance of 15% in FY23, in line with Trendlyne’s Forecaster estimates of 14.3%. The management also said that the company is focusing on non-defense businesses, which accounted for 10.2% of revenues in FY22. Over the next two to three years, the company aims to get 20% of its total revenue from the non-defence sector. In line with this strategy, BEL recently signed a memorandum of understanding (MoU) with UK-based Smiths Detection, to offer advanced, high-energy scanning systems to the Indian market. It also signed an MoU with NHPC for setting up a 1,000-megawatt solar manufacturing unit in India. The company's order book position stood at Rs 55,333 crore in Q1FY23 with an expected order inflow of Rs 20,000 crore in FY23. With a huge order book in hand, the focus now turns to execution - how well it can fulfill these orders.

4. Kalyan Jewellers: The stock of this jewellery maker outperformed the Nifty 500 index by over 15 percentage points in the past week and touched its life-high today. The company also surpassed its IPO issue price of Rs 87 apiece for the first time this week. The stock has been buzzing in trade on the expectation of bumper sales in Q2FY23.

The gold prices in USD/Kg corrected close to 15% between April and September 2022, according to the World Gold Council. This augurs well for gold jewellery demand in India’s upcoming festive and wedding season. In fact, Kalyan Jewellers saw a stronger sales momentum in July than in Q1FY23 for both the Indian and Middle East markets. The official festive season in the southern part of India began as of August end with the arrival of Onam. The southern market actually happens to be the stronghold of Kalyan Jewellers and the company derives 65% of its sales from the same. Now, the company is looking to expand in other regions and will invest around Rs 250 to 300 crore by this Diwali. Back in July, its initial target was to open 10 stores across Delhi NCR, Maharashtra, Uttar Pradesh, Orissa and Chhattisgarh. Since then, it has already opened three stores taking its store count to over 160. Coupled with the sales from new stores and strong traction in its flagship market, the company may rake in higher YoY revenue and profits for Q2FY23.

According to Kalyan Jewellers, the organized retail market for gold jewellery will grow at a rate of 14% YoY in FY23, faster than the broader gold jewellery demand. This definitely augurs well for the company and consensus estimates of analysts see its net profits rising over 40% in FY23.

5. Zensar Technologies: This IT stock is falling for the last three consecutive sessions, nearing its 52-week low on Thursday. It fell 2% on Wednesday after the company held its investor meeting. In its investor meeting, the management noted that it is seeing a fall in demand from clients, especially from the retail, manufacturing and technology segments. The company’s major clients are from the US (71% of the client base) where the economy is slowing, and businesses are starting to conserve cash. Given this, Motilal Oswal’s report suggests that the technology segment might take a dip in terms of demand as many tech companies have started to lay off employees.

Despite headwinds, Motilal Oswal gives a ‘Buy’ rating on Zensar with a target price upside of 15% as it expects revenue to grow in FY23. It also expects margins to improve and key accounts to recover during the year. In its investor presentation, the management says that demand and order book is still robust from the BFSI (banking and financial services) segment, (56% growth in Q1FY23). The company also has 5 mergers & acquisition deals on the table for execution. The stock also shows up on a screener of companies whose RoE is improving from the past two years.

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