Trendlyne Marketwatch
Trendlyne Marketwatch
05 May 2023
Market closes lower, Federal Bank's Q4 net profit surges 67% YoY to Rs 902.6 crore

Trendlyne Analysis

Nifty 50 closed at 18,069.00 (-186.8, -1.0%), BSE Sensex closed at 61,054.29 (-695.0, -1.1%) while the broader Nifty 500 closed at 15,278.60 (-126.9, -0.8%). Of the 1,943 stocks traded today, 657 showed gains, and 1,223 showed losses.

Indian indices extended their losses and closed over 1% lower, with the volatility index, India VIX, rising by over 5%. However, the benchmark Nifty 50 index rose 0.8% in the past week. United Breweries fell over 2% after its Q4 net profit fell 94% YoY to Rs 981 crore.

Nifty Midcap 100 and Nifty Smallcap 100 closed in the red, following the benchmark index. However, Nifty Auto and Nifty FMCG closed higher than their Thursday levels. According to Trendlyne’s sector dashboard, telecommunications equipment was the top-performing sector of the day and also the week.

European indices traded in the green, taking cues from the US indices futures, which also traded higher. Major Asian indices closed higher, except for India’s BSE Sensex and China’s Shanghai SE Composite Index, which closed in the red. Brent crude oil futures traded over 1.5% higher but crude oil prices are still down 8% in the past week.

  • Federal Bank sees a short buildup in its May 25 future series as its open interest rises 61.2% with a put-call ratio of 0.44.

  • Mahindra & Mahindra Financial Services touches its 52-week high of Rs 289.2 today. It has risen over 20% in the past month. The company features in a screener of stocks where brokers have upgraded their recommendations or target prices in the past three months.

  • Symphony is falling as its Q4FY23 net profit plunges by 74.6% YoY to Rs 16 crore and its revenue drops by 19.8% YoY due to a 22% YoY decline in the air-cooling segment. The stock shows up in a screener for companies with decreasing cash flows from operations over the past two years.

  • Cholamandalam Financial Holdings and Sapphire Foods India rise 20.7% and 10.1% over the past week, ahead of their results on May 12.

  • KFIN Technologies is plunging as its revenue declines by 2.7% QoQ to Rs 183.1 crore in Q4FY23. However, its EBIDTA margin improves by 290 bps QoQ, aiding the net profit to grow 6.8% QoQ. The company shows up in a screener of stocks with increasing net profit and profit margin (YoY).

  • Telecommunications equipment, hotels, restaurants & tourism, forest materials and commercial services & supplies sectors rise more than 4% in the past week.

  • Federal Bank is plunging despite its net profit growing by 67% YoY to Rs 902.6 crore in Q4FY23. Its asset quality improves as gross and net NPAs decline by 44 bps YoY and 27 bps YoY. However, the bank witnesses a 55% YoY increase in provisions.

  • NMDC, HDFC Bank, Dabur India, IndusInd Bank and United Breweries are trading below their third support or S3 level.

  • Bharat Forge is falling as its Q4FY23 net profit declines 42.5% YoY due to higher raw material costs, finance costs and other expenses. Its revenue marginally rises by 1.6% YoY. The stock shows up in a screener for companies with declining cash flows from operations over the past two years.

  • According to reports, one of Spicejet’s lessors, Aircastle, files a case at the National Company Law Tribunal (NCLT) to initiate an insolvency process against the airline for non-payment of dues. The first hearing of this case is set to take place on Monday at the Delhi bench of NCLT.

  • Securities and Exchange Board of India (SEBI) plans to issue directives to brokers and mutual funds to limit the use of financial influencers in their advertising and marketing campaigns, according to reports. SEBI is worried about the rise in influencers sharing financial advice on social media, which could mislead retail investors.

  • Mohit Malhotra, CEO of Dabur India, says the company aims to achieve an EBITDA margin of around 19-19.5% in FY24. He adds that Dabur's revenue growth could be in the low double-digit.

  • Manappuram Finance's Managing Director VP Nandakumar, in a statement today, clarifies that the ED probe is not related to the company but a now non-existent private entity called Manappuram Agro Farms. The enforcement actions are against the promoter and not the company, he adds.

  • KRChoksey maintains its ‘Buy’ rating on Kotak Mahindra Bank with a target price of Rs 2,330. This implies an upside of 19%. The brokerage remains positive about the bank’s prospects due to its improving asset quality, strong brand value, healthy credit growth and rising market share. It expects the company’s net profit to grow at a CAGR of 12.7% over FY23-25.

  • United Breweries is falling as its net profit declines 94% YoY to Rs 981 crore in Q4FY23. The rise in employee benefits expense, cost of raw materials and other expenses has caused the EBITDA margin to plunge by 5.9 percentage points YoY to 1.6%. The company features in a screener of stocks with declining profits for the past three quarters.

  • Media stocks like Zee Entertainment Enterprises, Sun TV Network, PVR and Network 18 Media & Investment are falling in trade. The broader sectoral index Nifty Media is also trading in the red.

  • R Dilip Kumar, CFO of Sundram Fasteners, says the company targets to improve its margin to 17% in FY24. He adds that it expects to generate 15% revenue from the EV segment.

  • Jammu & Kashmir Bank's Q4FY23 profit rises 297.7% YoY to Rs 472.6 crore, aided by good recoveries. Its revenue also increases by 21.2% YoY. The bank shows up on a screener of stocks with low debt.

  • Blue Star is rising as its Q4FY23 net profit nearly triples YoY to Rs 225.3 crore, aided by realising a gain of Rs 170.8 crore from the sale of land. Revenue also increases by 16.7% YoY, driven by growth across all its business segments. The company’s board has approved the issue of bonus equity shares in the ratio of 1:1.

  • Apollo Tyres, Castrol India and Westlife Foodworld's weekly average delivery volumes rise ahead of their Q4FY23 results on Tuesday

  • Tech Mahindra acquires an additional 29% stake in Tech Mahindra Arabia, its joint venture with Midad, for a cash consideration of $11.1 million ( approximately Rs 90.7 crore). TechM now holds an 80% stake in TechM Arabia, while Midad holds 20%.

  • Anant Goenka, Vice Chairman of Ceat, says the company targets to generate 25-30% of revenue from the international market in the near term. He adds that Ceat plans to improve growth in the two-wheeler and PV segments.

  • Manappuram Finance falls as the Directorate of Enforcement freezes assets worth Rs 143 crore of its Managing Director VP Nandakumar under the Prevention of Money Laundering Act, 2002. The assets include 19 crore equity shares in the company.

  • Adani Enterprises' Q4FY23 profit rises 137.4% YoY to Rs 722.5 crore. Its revenue also grows 26.2% YoY on the back of positive performance by the integrated resources management and airports business segments. The company shows up in a screener for stocks with consistently high returns over five years.

  • Hero MotoCorp is rising as its net profit improves by 37% YoY to Rs 859 crore in Q4FY23. Its revenue also grows by 12% YoY on the back of improvement in volume sold during the quarter. The company shows up in a screener of stocks with increasing profit for the past three years.

  • Macquarie maintains its ‘Outperform’ rating on TVS Motor with a target price of Rs 1,354. The brokerage says the company is its top pick in the two-wheeler space. It also raises PAT estimates for FY24E to 5%.

  • TVS Motor Co is rising as its consolidated Q4FY23 net profit increases 21.1% YoY to Rs 336.1 crore, and its revenue grows by 22% YoY. The healthy performance is driven by a premium product mix, falling commodity prices, and easing semiconductor supply constraints. The stock shows up in a screener for companies with consistently high returns over the past five years.

  • Tata Power’s Q4FY23 net profit rises 54.6% YoY to Rs 777.7 crore, aided by higher other income. Its revenue improves 4.1% YoY, with the transmission & distribution segment growing by 16.4% YoY. The stock shows up in a screener for companies with high TTM EPS growth.

  • Indian markets slumped today. Nifty 50 was trading at 18,153.35 (-102.5, -0.6%) , BSE Sensex was trading at 61,163.10 (-586.2, -1.0%) while the broader Nifty 500 was trading at 15,359.60 (-45.9, -0.3%)

  • Market breadth is highly positive. Of the 1,699 stocks traded today, 1,133 were in the positive territory and 475 were negative.

Riding High:

Largecap and midcap gainers today include Cholamandalam Investment & Finance Company Ltd. (991.85, 4.38%), TVS Motor Company Ltd. (1,214.95, 3.93%) and MRF Ltd. (9,8614.05, 3.68%).

Downers:

Largecap and midcap losers today include Federal Bank Ltd. (127.75, -8.36%), HDFC Bank Ltd. (1,625.65, -5.91%) and Housing Development Finance Corporation Ltd. (2,702.30, -5.58%).

Volume Shockers

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

Top high volume gainers on BSE included Restaurant Brands Asia Ltd. (107.95, 9.32%), ITI Ltd. (105.60, 8.64%) and Hitachi Energy India Ltd. (3,729.80, 7.60%).

Top high volume losers on BSE were Manappuram Finance Ltd. (105.55, -11.49%), Federal Bank Ltd. (127.75, -8.36%) and IndusInd Bank Ltd. (1,073.30, -5.40%).

HLE Glasscoat Ltd. (623.85, 4.49%) was trading at 18.1 times of weekly average. Happiest Minds Technologies Ltd. (871.45, 5.13%) and Symphony Ltd. (941.10, -5.27%) were trading with volumes 12.6 and 10.4 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

21 stocks overperformed with 52-week highs, while 3 stocks hit their 52-week lows.

Stocks touching their year highs included - Apollo Tyres Ltd. (368.90, 2.54%), Bharat Petroleum Corporation Ltd. (365.45, -0.79%) and Carborundum Universal Ltd. (1,100.25, -2.06%).

Stocks making new 52 weeks lows included - V-Mart Retail Ltd. (2,067.45, -1.26%) and TeamLease Services Ltd. (2,028.50, -2.79%).

14 stocks climbed above their 200 day SMA including ITI Ltd. (105.60, 8.64%) and HLE Glasscoat Ltd. (623.85, 4.49%). 15 stocks slipped below their 200 SMA including Manappuram Finance Ltd. (105.55, -11.49%) and IndusInd Bank Ltd. (1,073.30, -5.40%).

 
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