Trendlyne Marketwatch
Trendlyne Marketwatch
03 Feb 2025
Market closes lower, KPR Mill's Q3 net profit misses Forecaster estimates by 4.4%
By Trendlyne Analysis

 

Nifty 50 closed at 23,361.05 (-121.1, -0.5%), BSE Sensex closed at 77,186.74 (-319.2, -0.4%) while the broader Nifty 500 closed at 21,402.55 (-179.2, -0.8%). Market breadth is highly negative. Of the 2,415 stocks traded today, 591 were in the positive territory and 1,792 were negative.

Indian indices closed in the red, with the benchmark Nifty 50 index closing at 23,361.1 points. The Indian volatility index, Nifty VIX, rose 1.8% and closed at 14.4 points. Divi's Laboratories closed more than 5% higher as its Q3FY25 net profit grew 64.5% YoY to Rs 589 crore owing to inventory destocking and a deferred tax refund of Rs 37 crore. 

Nifty Smallcap 100 and Nifty Midcap 100 closed in the red, tracking the benchmark index. S&P BSE Capital Goods and S&P BSE Industrials were among the worst index performers today. According to Trendlyne’s Sector dashboard, Forest Materials emerged as the best-performing sector of the day, with a rise of 3.4%.

Asian indices closed lower, except Sri Lanka’s CSE All-Share index, which closed 1.2% higher. Most European indices are trading in the red. US index futures are trading in the red, following President Donald Trump’s decision to impose trade tariffs on China, Canada, and Mexico. Brent crude oil futures are trading higher.

  • Relative strength index (RSI) indicates that stocks like Maruti Suzuki, Zensar Technologies, Bajaj Finance, and United Breweries are in the overbought zone.

  • Dhanuka Agritech's net profit rises 21.3% YoY to Rs 55 crore in Q3FY25 due to lower raw material costs and better operational efficiency. Revenue increases 10.4% YoY to Rs 445.3 crore during the quarter. The company appears in a screener of stocks outperforming their industry price change over the past quarter.

  • Nuvama Wealth Management's revenue grows 22.7% YoY to Rs 1,031.8 crore in Q3FY25, driven by improvements in the wealth & asset management and capital markets businesses. Net profit rises 43% YoY to Rs 252.1 crore during the quarter. It shows up in a screener of stocks with increasing return on capital employed (RoCE) over the last two years.

  • Emkay maintains a 'Buy' rating on Tata Motors with a target price of Rs 950. The brokerage notes that India's commercial vehicle (CV) outlook is improving, driven by positive trends in fleet utilization, freight rates, and financing. While global demand uncertainties remain, it believes JLR's focus on improving product mix and profitability will support continued broad-based improvement.

  • KPR Mill's net profit grows 8.1% YoY to Rs 202.3 crore in Q3FY25. Revenue increases 23.2% YoY to Rs 1,529.2 crore, driven by higher sales from the textile and sugar segments during the quarter. The company appears in a screener of stocks with declining ROE over the past two years.

  • Globus Spirits rises sharply as it announces a 4.4% price hike on regular and other brands in Rajasthan, effective April 1, 2025.

  • Divi's Laboratories rises sharply as its Q3FY25 net profit grows 64.5% YoY to Rs 589 crore owing to inventory destocking and a deferred tax refund of Rs 37 crore. Revenue increases 23.1% YoY to Rs 2,401 crore during the quarter. It features in a screener of stocks near their 52-week highs with significant volumes.

  • Morgan Stanley believes the Union Budget successfully boosted consumption through tax cuts, increased capex via state transfers, and maintained fiscal consolidation, which should support economic recovery and macro stability. However, the brokerage remains watchful about the 14.4% income tax collection growth target.

  • L&T Technology Services is rising as its smart world business partners with Arizona Technology Council to expand its presence in smart city and digital solutions. This partnership improves Arizona's tech ecosystem and promotes innovation.

  • IndusInd Bank's net profit plunges 39% YoY to Rs 1,401.3 crore in Q3FY25, caused by higher interest, provisions, and employee benefits expenses. However, revenue grows 8.5% YoY to Rs 15,151 crore, driven by an improvement in the treasury, retail, and corporate banking segments. The bank's asset quality worsens as its gross and net NPAs rise 33 bps YoY and 11 bps YoY, respectively.

  • Neogen Chemicals is rising as its net profit grows 8.5X YoY to Rs 10 crore in Q3FY25, driven by inventory destocking and lower employee benefit expenses. Revenue increases 22.5% YoY to Rs 201.4 crore during the quarter. The company appears in a screener of stocks where mutual funds increased their shareholding over the past two months.

  • Jefferies initiates coverage on Adani Power with a 'Buy' rating and a price target of Rs 660. The brokerage expects the company’s merchant capacity to reach 12-13% by FY30, contributing 19-20% to EBITDA. It also anticipates power demand to rebound to 7%, similar to the levels seen during the capex upcycle from FY03 to FY09, following recent weakness.

  • Bandhan Bank is falling as its Q3FY25 net profit declines 41.8% YoY to Rs 426.5 crore due to higher provisions, employee benefits, and interest expenses. However, revenue grows 26.2% YoY to Rs 6,574.6 crore, helped by an improvement in the treasury, retail, and corporate banking segments. The bank's asset quality improves as its gross and net NPAs decline by 234 bps YoY and 93 bps YoY, respectively.

  • Oil & Natural Gas Corp falls sharply as its revenue decreases by 0.8% YoY to Rs 1.7 lakh crore in Q3FY25 due to decline in refining & marketing and petrochemicals segments. Net profit drops 16.7% YoY to Rs 8,239.9 crore, missing the Forecaster estimates by 15%. It features in a screener of stocks with increasing trend in non-core income.

  • Coal India falls sharply as its monthly coal production declines 0.8% YoY to 77.8 million metric tonnes in January. However, its total sales rises 2.2% YoY to 68.6 million tonnes.

  • Railway stocks like IRCTC, RVNL, and IRFC decline in trade as the FY26 Union Budget keep Indian Railways' capital expenditure unchanged at Rs 2.5 lakh crore. The ministry's internal and extra-budgetary resources (IEBR) for FY26 also remain flat at Rs 13,000 crore, a significant drop from Rs 52,783 crore in FY24.

  • Aster DM Healthcare is rising as its Q3FY25 revenue grows 12.3% YoY to Rs 1,082.8 crore during the quarter. However, net profit declines 69.2% YoY to Rs 64.4 crore, caused by higher inventory, professional fees, employee benefits, finance, and depreciation & amortisation expenses. It appears in a screener of undervalued growth stocks.

  • Mahindra & Mahindra is rising as its wholesales grow by 16% YoY to 85,432 units in January. Passenger vehicle sales increase 18% YoY, while exports nearly double.

  • HBL Engineering, in partnership with Shivakriti International, receives a letter of acceptance (LoA) for an order worth Rs 410.4 crore from the Ahmedabad Division of Western Railway. The order covers the supply and installation of the way-side Kavach system on the Ahmedabad-Palanpur and Ahmedabad-Samakhiyali sections, spanning a total of 402 kilometers.

  • State-owned OMCs such as BPCL and Indian Oil are declining, and analysts expect them to continue struggling in FY26 due to insufficient budget support. The LPG subsidy budget for FY26 stands at Rs 12,100 crore, below estimates. ICICI Securities notes that even with an LPG subsidy of Rs 14,700 crore for FY25, OMCs still face profitability issues, with an under-recovery of over Rs 30,000 crore for 9MFY25.

  • Vedanta's net profit grows 76.2% YoY to Rs 3,547 crore in Q3FY25 owing to lower power & fuel and depreciation & amortisation expenses. Revenue rises 9.5% YoY to Rs 39,795 crore, led by an improvement in the zinc, lead, & silver, aluminium, and copper segments. It appears in a screener of stocks with increasing debt.

  • Eicher Motors rises to a new all-time high of Rs 5,575.5 as its total sales grow by 20% YoY to 91,132 units in January. Domestic vehicle sales increase 21.2% YoY, while exports are up 26.8% YoY.

  • GR Infraprojects is falling sharply as its Q3FY25 revenue declines 16.7% YoY to Rs 1,797.4 crore due to a reduction in the engineering, procurement, & construction (EPC), and build, operate & transfer (BOT) segments. However, net profit grows 8.1% YoY to Rs 262.6 crore, helped by lower construction, inventory, employee benefits, and finance costs. It shows up in a screener of stocks with low Piotroski scores.

  • Hero MotoCorp's monthly wholesales rises 2.1% YoY to 4.4 lakh units in January due to higher scooter sales and domestic business. Exports surge 1.4X YoY to 30,495 units during the month.

  • Markets opened on a low note. Nifty 50 was trading at 23,263 (-219.2, -0.9%) , BSE Sensex was trading at 76,795.26 (-710.7, -0.9%) while the broader Nifty 500 was trading at 21,320.25 (-261.5, -1.2%)

  • Market breadth is highly negative. Of the 2,010 stocks traded today, 365 were on the uptrend, and 1,587 went down.

Riding High:

Largecap and midcap gainers today include Voltas Ltd. (1,401.30, 5.8%), Cholamandalam Investment & Finance Company Ltd. (1,337.65, 5.7%) and Bajaj Finance Ltd. (8,425.80, 5.3%).

Downers:

Largecap and midcap losers today include Siemens Ltd. (5,225.90, -9.1%), Samvardhana Motherson International Ltd. (130.61, -8.4%) and Thermax Ltd. (3,575.75, -7.8%).

Crowd Puller Stocks

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

Top high volume gainers on BSE included Hatsun Agro Products Ltd. (1,011.70, 6.2%), Westlife Foodworld Ltd. (825.85, 5.9%) and Maharashtra Scooters Ltd. (9,770, 5.2%).

Top high volume losers on BSE were Siemens Ltd. (5,225.90, -9.1%), Housing and Urban Development Corporation Ltd. (198.11, -8.9%) and Rites Ltd. (232.40, -8.7%).

Metro Brands Ltd. (1,295.05, 4.8%) was trading at 13.9 times of weekly average. Supreme Petrochem Ltd. (615.10, -1.0%) and Sapphire Foods India Ltd. (326.80, 3.5%) were trading with volumes 10.4 and 10.0 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

6 stocks hit their 52 week highs, while 13 stocks were underachievers and hit their 52 week lows.

Stocks touching their year highs included - Bajaj Finance Ltd. (8,425.80, 5.3%), Eicher Motors Ltd. (5,485.25, 1.8%) and SRF Ltd. (2,942.70, 4.1%).

Stocks making new 52 weeks lows included - Bank of Baroda (207.99, -1.4%) and Bharat Petroleum Corporation Ltd. (249.55, -2.4%).

22 stocks climbed above their 200 day SMA including Ajanta Pharma Ltd. (2,982.75, 9.7%) and Westlife Foodworld Ltd. (825.85, 5.9%). 31 stocks slipped below their 200 SMA including Anant Raj Ltd. (590.20, -7.6%) and Rail Vikas Nigam Ltd. (407.15, -6.1%).

 
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