The equity markets have seen a significant shift recently, with small-cap and mid-cap stocks drawing substantial investor interest. As valuations in these sectors surge, many investors reconsider blue-chip or large-cap stocks, often viewed as more stable and resilient. This article explores why bluechip stocks may be set for a resurgence and how current market conditions could favor these well-established companies.
So far in 2024, the Nifty 50 represents large-cap companies and has provided investors with around 12% returns. In comparison, the Nifty Midcap 100 and Nifty Smallcap 250 have delivered 22% and 25% returns, respectively, based on market data.
The Nifty Midcap 100’s current price-to-earnings (PE) ratio is 44.19, above its five-year average of 37.36, while the Nifty Smallcap 250 stands at 33.89, higher than its average of 29.05. In contrast, the Nifty 50’s PE ratio 23.32 sits just below its five-year average of 24.68.
It is important to note that many mid-cap and small-cap stocks now hold high valuations, which could limit their future return potential, according to industry experts. Over half of mid-cap index stocks trade with a price-to-earnings (PE) ratio above 40, suggesting potential overvaluation.
Market experts increasingly point to bluechip stocks as valuations in small- and mid-cap sectors reach elevated levels. In the face of economic uncertainty, large-cap stocks present a more secure choice for cautious investors. However, this shift does not mean small- and mid-caps are losing their appeal entirely.
3 Reasons Smallcap and Midcap Markets are Overheating
Record High Valuations:
Small-cap and mid-cap stocks have seen a significant run-up in prices. With high valuations, these stocks may now be trading above their fundamental value, raising concerns about a potential market correction.
Increased Retail Investor Interest:
Retail investors have flocked to smaller stocks for quick gains, increasing prices even further. While this trend is beneficial in the short term, it has created an imbalance in valuations, with some stocks priced much higher than their actual worth.
Vulnerability to Economic Shifts:
Small and mid-cap companies are generally more sensitive to economic shifts, making them riskier in the face of economic slowdowns or inflationary pressures. In contrast, large-cap companies often have diverse revenue streams and global reach, enabling them to withstand economic turbulence better.
The Appeal of Bluechip Stocks in an Overheated Market
Stability and Reliability:
Blue-chip stocks represent large, established companies with proven track records. They tend to be less volatile than small-cap and mid-cap stocks, making them appealing during market uncertainties.
Strong Fundamentals and Valuations:
Unlike their smaller counterparts, many blue-chip stocks are trading at more reasonable valuations. With consistent earnings, robust business models, and often dividend payouts, these stocks offer a safer bet for long-term investors looking for sustained growth.
Defensive Characteristics:
Blue-chip stocks typically can perform well even during economic downturns. Companies in sectors like consumer goods, healthcare, and utilities often remain resilient as they provide essential services that consumers continue to need, regardless of economic conditions.
3 Key Factors Contributing to the Bluechip Comeback
1. Shift in Investor Sentiment:
As the small-cap and mid-cap markets reach high valuations, some investors shift their focus to blue-chip stocks for better value and reduced risk. This shift in sentiment could drive more capital into large-cap stocks.
2. Institutional Investor Interest:
Large institutional investors, such as mutual funds and pension funds, prefer blue-chip stocks for their stability. The increased demand for blue-chip stocks could boost their prices as these investors rebalance their portfolios.
3. Potential Regulatory Concerns:
With high retail involvement and increased volatility in smaller stocks, regulatory measures to stabilize the market could be considered. Such measures could direct investor attention back to the blue-chip sector, less prone to speculative risks.
Key Sectors in the Bluechip Category Poised for Growth
1. Technology and Communication:
With continued demand for digital services, large-cap tech firms remain promising for long-term growth. These companies have significant resources to innovate and adapt to changing market needs.
2. Financial Services:
Banks and financial institutions, which form a substantial part of the blue-chip segment, are seeing renewed interest due to their resilience. As economic activity picks up, these companies are likely to benefit from higher loan demand and fee income.
3. Consumer Goods:
Firms that produce essential consumer goods, often considered defensive stocks, have shown steady performance. The demand for these products remains consistent, regardless of economic fluctuations, making them popular among risk-averse investors.
Risks and Considerations in Reinvesting in Bluechips
Slower Growth Potential:
Blue-chip stocks generally offer slower growth than small-cap and mid-cap stocks, which may not appeal to aggressive investors looking for high returns in a short period.
Sector-Specific Risks:
While blue-chip companies are more stable overall, fluctuating commodity prices and regulatory changes may affect certain sectors, such as energy. Investors should consider sectoral factors before investing.
Interest Rate Sensitivity:
As interest rates rise, some blue-chip companies, especially those with significant debt, may experience increased costs. Rising rates can also affect the discount rate for future cash flows, impacting valuations.
Tips for Investing in Bluechip Stocks
1. Prioritize Diversification:
A diversified portfolio of blue-chip stocks across different sectors can provide stability and growth, minimizing sector-specific risks.
2. Focus on Dividend-Paying Stocks:
Many blue-chip stocks offer dividends, providing an additional income stream. Dividend-paying stocks are often more stable and appeal to investors seeking regular returns.
3. Evaluate Long-Term Fundamentals:
Blue-chip stocks are generally more suitable for long-term investments. Focus on companies with strong fundamentals, steady earnings growth, and sound management practices.
Conclusion
Overheating small-cap and mid-cap markets have raised concerns about a potential correction, prompting investors to consider blue-chip stocks a safer alternative. With solid fundamentals, defensive qualities, and resilience against economic downturns, blue-chip stocks offer stability and growth potential in a turbulent market.
As investors reevaluate their portfolios, bluechips appear poised for a comeback. They provide a more balanced approach to long-term wealth creation.
Disclaimer Note: The securities quoted, if any, are for illustration only and are not recommendatory. This article is for education purposes only and shall not be considered as a recommendation or investment advice by Equentis – Research & Ranking. We will not be liable for any losses that may occur. Investments in the securities market are subject to market risks. Read all the related documents carefully before investing. Registration granted by SEBI, membership of BASL & certification from NISM in no way guarantee the performance of the intermediary or provide any assurance of returns to investors.
FAQ
What are midcap and smallcap stocks?
Midcap stocks are companies with market capitalizations between small and large-cap companies, while small-cap stocks have market capitalizations below midcap companies. These stocks often offer higher growth potential but are also riskier.
Why are midcap and smallcap stocks overvalued?
Recent market rallies have pushed the valuations of these stocks to historical highs. This overvaluation, coupled with a potential economic slowdown and rising interest rates, could lead to a correction.
Why are bluechip stocks poised for a comeback?
Bluechip stocks, or large-cap companies, are often more stable and less volatile than midcap and smallcap stocks. They also tend to have strong fundamentals, dividend yields, and robust business models. As the market matures, investors may shift towards safer, dividend-paying bluechip stocks.
What are the risks of investing in bluechip stocks?
While bluechip stocks are generallyconsidered safer, they are not immune to market fluctuations. Economic downturns, industry-specific challenges, and changes in investor sentiment can negatively impact their performance.
How can I invest in bluechip stocks?
There are multiple ways to invest in blue-chip stocks. You can purchase individual blue-chip stocks directly from the stock market, or choose mutual funds that focus on these established companies. Another option is to invest in exchange-traded funds (ETFs) that track indices composed of blue-chip stocks, offering a diversified approach.
Have you noticed the recent turbulence with Asian Paints? Following its Q2 2024 results, Asian Paints’ share price dropped significantly by 9%, reflecting the sharpest decline in over two and a half years.
This reaction followed a 42% year-on-year drop in profit after tax (PAT), drawing considerable attention from investors and industry watchers alike. Here’s a closer look at what contributed to this outcome and how Asian Paints’ financial performance has evolved.
Understanding the Quarterly Financials
For the quarter ending in September 2024, Asian Paints reported a PAT of ₹ 694.64 crore, marking a substantial fall from the ₹1,205.62 crore recorded in the same period the previous year. This 42% drop in profit paints a challenging picture for the company, particularly compared to previous performance metrics.
Revenue from operations also decreased slightly by 5.1% year-on-year, from ₹8643.77 crore to ₹8201.09 crore. Thus, the actual financials missed the mark on revenue and profit fronts. These numbers point to underlying issues within the business and reveal how a mix of operational challenges and market conditions have impacted overall performance.
Key Factors Behind the Decline
Asian Paints has attributed its subdued quarterly performance to a few primary factors, with the domestic coatings business performance at the top. The company’s revenue growth in this segment stood at only 1.1%, indicating muted demand for paint products within the domestic market.
The value sales of the domestic decorative paints segment remained flat, even though it did report a modest volume growth of around 6%. Amit Syngle, CEO of Asian Paints, highlighted some of the main obstacles the company faced, including erratic monsoon patterns and the delayed festive season, which directly impacted consumer demand.
These factors resulted in consumers deferring purchases, weakening sales during what is typically a peak season. The company also reported that persistent macroeconomic pressures, particularly the rising input costs, significantly impacted its operating margins, leading to a substantial drop in profit. Source: MoneyControl
Market Reaction and Stock Performance
Following the announcement of Q2 results, Asian Paints’ share value fell close to 9%, sending a clear message of concern from the market. This sharp drop is a marked shift for a stock historically known for its stability. As Asian Paints competes within a challenging economic landscape, investor sentiment appears cautious, especially given the combination of weak sales growth and escalating input costs.
This market reaction could be tied to the perceived uncertainties regarding Asian Paints’ ability to maintain its profit margins in the current environment. The demand challenges in the domestic market may signal broader difficulties in sustaining growth, even in traditionally strong segments like decorative paints. This investor caution is reflected in the sharp share price decline, indicating concerns over the company’s future profitability and resilience in the face of these hurdles.
Broader Financial Landscape for Asian Paints
Despite these recent challenges, Asian Paints retains a strong presence in the Indian paint industry. The company’s Q2 report aligns with a larger trend within the industry, where rising raw material costs and volatile market conditions have pressured profit margins. With Asian Paints already holding a robust share of the domestic market, growing its profits while navigating these new cost pressures could be a balancing act in the coming quarters.
In terms of revenue, Asian Paints managed to sustain its topline growth, albeit marginally, despite the challenging conditions. This slight uptick in revenue from operations can be attributed to its resilience and longstanding customer base, even as other parts of the business have slowed.
However, the company’s operating expenses increased due to input cost inflation, largely contributing to the PAT decline. For instance, a rise in crude oil prices has driven up the cost of key raw materials used in paint production, further straining the company’s margins. Source: Asian Paints
A Decade of Growth
The graph illustrates the year-on-year (YoY) growth in Asian Paints’ Profit After Tax (PAT) from 2015 to 2024. The company has experienced substantial growth over the years. The PAT has steadily increased, with notable jumps in 2020, 2022, and 2024. This indicates that the company has successfully implemented strategies that have led to improved profitability.
Asian Paints continues to maintain a strong market position despite the performance shortfall. Macroeconomic factors, such as fluctuating commodity prices and uneven consumer demand patterns, have impacted the company’s ability to deliver growth. However, Asian Paints has demonstrated resilience, adapting its strategies to counterbalance market shifts and maintain its competitive edge.
Looking forward, the company may explore new avenues for growth, both within its core paint products and potentially through diversification in product lines. With the festive season now underway, and as demand stabilizes post-monsoon, Asian Paints will likely be closely watched by investors for any signs of revenue recovery or strategic shifts that could address the recent cost and demand challenges.
In Conclusion,
Asian Paints’ Q2 results reveal a significant decline in profit, primarily driven by weak domestic sales growth and rising input costs. The 42% year-on-year PAT drop underscores the challenges the company faces in sustaining profitability amidst volatile market conditions.
The sharp 9% decline in share value following the report indicates a cautious market sentiment as investors weigh the potential for sustained profitability within this challenging landscape.
Asian Paints’ dominant market position, however, continues to provide stability even as it navigates these complex conditions. Going forward, the company’s response to cost pressures and potential adaptations to consumer demand will play a crucial role in shaping its performance trajectory and market perception in the near term.
Disclaimer Note: The securities quoted, if any, are for illustration only and are not recommendatory. This article is for education purposes only and shall not be considered as a recommendation or investment advice by Equentis – Research & Ranking. We will not be liable for any losses that may occur. Investments in the securities market are subject to market risks. Read all the related documents carefully before investing. Registration granted by SEBI, membership of BASL & certification from NISM in no way guarantee the performance of the intermediary or provide any assurance of returns to investors.
The demand for gold loans in India has surged by 51%, a trend driven by increased difficulty in obtaining personal loans and the rising price of gold. With the Reserve Bank of India (RBI) tightening policies on personal loans, gold loans have emerged as an alternative for many, given their accessibility and the high value of gold collateral.
Bank data from August revealed that loans against gold jewelry surged by an impressive 51% in September, compared to 15% in March. In contrast, personal loans grew at a slower pace of 11.4% in September, marking the slowest rate in nearly four years, as banks became cautious following the RBI’s increase in risk weights on unsecured loans.
It’s important to note that, at ₹1.5 trillion, the total outstanding amount of gold loans is significantly smaller than that of personal loans, which reached ₹14.3 trillion as of 30 September. This comparison shows that personal loans remain a much larger part of the lending market despite the recent surge in gold loans.
RBI’s Concerns Over Gold Loan Lending Practices
In September, the Reserve Bank of India (RBI) raised concerns about gold lending practices, citing issues such as reliance on third-party agencies, insufficient due diligence, and limited monitoring of how funds are ultimately used. According to reports, these warnings are likely tied to the rapid growth in the gold lending sector.
Strengthening Compliance Culture
RBI’s focus on compliance, know-your-customer (KYC) regulations, and thorough process monitoring could help build a stronger compliance culture in India, potentially limiting risky lending practices. “We believe this will drive banks and finance companies to better focus on policies and processes, ultimately enhancing the operational resilience of the system,” she noted.
Large Lenders Embrace Gold Loans
Major lenders are optimistic about the gold loan segment. For instance, the State Bank of India (SBI), the country’s largest lender, saw personal gold loans increase by 28.3% year-on-year, reaching ₹38,826 crore as of 30 September.
Growing Demand for Gold Loans: Key Reasons
Personal Loan Restrictions
Recently, financial institutions have tightened their approval processes for personal loans, particularly for individuals with lower credit scores. Regulatory authorities are increasingly scrutinizing lending standards to curb high default rates. As a result, many who would typically rely on personal loans are exploring alternative options, with gold loans emerging as a practical solution.
The Rising Price of Gold
Gold has seen a steady increase in value over recent years, which has led to a rise in its use as collateral. Since gold is considered a safe and appreciating asset, it enables borrowers to secure higher loan amounts than other asset-backed loans. The growth in gold prices boosts loan-to-value ratios, making gold loans more attractive.
Easier Access to Gold Loans
Gold loans often come with more lenient eligibility criteria than personal loans, making them accessible to a broader range of individuals. These loans do not require credit score evaluations as strictly as personal loans, making them ideal for those facing credit-related rejections. With gold as collateral, lenders are more secure, leading to faster approvals and lower processing times.
Lower Interest Rates on Gold Loans
Compared to personal loans, gold loans generally offer lower interest rates. Gold loans from banks or non-banking financial companies (NBFCs) can be as low as 7-8%, while personal loan rates can range from 10% to 24% or even more, depending on the borrower’s creditworthiness. This affordability factor draws more individuals toward gold loans, especially in financial strain.
Flexible Loan Terms and Repayment Options
Many financial institutions offer flexible repayment options for gold loans, making them easier for borrowers to manage. Options such as bullet repayments, monthly interest payments, or even partial repayments attract those who seek flexibility in repayment schedules.
Two Key Reasons for Difficulty Accessing Personal Loans
Stricter Regulatory Policies
In response to rising personal debt and the risk of defaults, the RBI has enforced stricter guidelines for banks and NBFCs. This includes tighter credit checks and higher thresholds for loan eligibility, making personal loans harder to secure.
Risk of Default in Personal Loans
The economic impact of the pandemic has led to increased defaults, prompting banks to be more cautious with unsecured lending. This conservative approach has shifted demand to more secure loans like gold loans.
Impact of Rising Gold Prices on Loan Demand
As gold prices increase, so does the loan amount that borrowers can secure against their gold assets. This has made gold loans more attractive for borrowers who own gold but need cash.
Higher Loan Value Rising gold prices mean borrowers can leverage their assets for higher loan amounts without additional collateral.
Increased Interest from Rural and Urban Borrowers Urban and rural borrowers, traditionally inclined toward gold ownership, see gold loans as a way to monetize their assets without permanent loss.
Benefits of Gold Loans Over Personal Loans
Secured Nature of the Loan Since an asset backs gold loans, lenders face less risk, resulting in easier approval and lower interest rates for borrowers.
Limited Documentation With fewer requirements than personal loans, gold loans are easier to obtain, appealing to borrowers needing quick cash.
Challenges and Risks Associated with Gold Loans
Risk of Gold Seizure If borrowers fail to repay their gold loans on time, lenders can seize and auction off the gold to recover the loan amount. This risk of losing a valuable family asset can be a major drawback, particularly for lower-income households.
Impact of Gold Price Fluctuations While gold prices have generally trended upward, there is no guarantee that prices will continue to rise. Fluctuations in gold prices could affect the loan-to-value ratio, leading lenders to adjust loan terms or rates in response to market changes.
Interest Rates and Hidden Charges While gold loans generally have lower interest rates than personal loans, they may still have hidden fees, such as processing or penalty charges for delayed payments. Borrowers need to review loan terms to avoid unexpected costs carefully.
Rising Gold Prices and Future Projections
According to the World Gold Council, spot gold prices climbed from ₹ $6,291.85 per gram on 13 May to ₹ $7,300.57 per gram on 8 November, marking a 16% increase. Over the past year, prices have surged by 41%. A report by Goldman Sachs, dated 29 October, further anticipates that gold prices could reach $3,000 per troy ounce by the end of 2025.
Evaluate Your Repayment Capacity Borrowers should assess their ability to repay gold loans on time to avoid the risk of losing their collateral.
Compare Interest Rates and Loan Terms Different lenders offer varying interest rates and terms for gold loans. Borrowers should compare offers to find the best rates and flexible repayment options.
Understand the Loan-to-Value Ratio The LTV ratio determines the maximum loan amount a borrower can receive based on the value of their gold. The loan-to-value (LTV) ratio is capped at 75% for gold loans, meaning borrowers can receive up to 75% of the pledged gold’s value as a loan. However, banks often set internal LTV limits, typically lower than the regulatory maximum.
Be Aware of Additional Fees Borrowers should review loan terms for additional charges, such as processing or penalty fees for late payments, to avoid surprises.
Choose Reputable Lenders Working with reputable financial institutions or NBFCs is essential to ensure fair loan terms and secure handling of the gold collateral.
Conclusion
The 51% surge in gold loan demand reflects the changing lending landscape in India, influenced by the accessibility issues surrounding personal loans and the appeal of gold as collateral. This shift underscores the importance of understanding various loan options in today’s financial environment.
Disclaimer Note: The securities quoted, if any, are for illustration only and are not recommendatory. This article is for education purposes only and shall not be considered as a recommendation or investment advice by Equentis – Research & Ranking. We will not be liable for any losses that may occur. Investments in the securities market are subject to market risks. Read all the related documents carefully before investing. Registration granted by SEBI, membership of BASL & certification from NISM in no way guarantee the performance of the intermediary or provide any assurance of returns to investors.
FAQs
Why is there a surge in gold loan demand?
As personal loan interest rates rise and banks tighten lending norms, individuals are turning to gold loans as an alternative. Gold loans offer lower interest rates and quicker approval processes, making them an attractive option for urgent financial needs.
How do gold loans work?
Gold loans involve pledging gold jewelry or other gold items as collateral. Lenders assess the purity and weight of the gold and provide a loan against it. The loan amount is typically a percentage of the gold’s value.
What are the advantages of gold loans?
Gold loans offer several advantages, including quick disbursal, minimal documentation, flexible repayment terms, and lower interest rates than personal loans. They are also suitable for individuals with a poor credit history.
Are there any risks associated with gold loans?
While gold loans offer several benefits, knowing the risks is important. If the borrower fails to repay the loan, the lender can auction the pledged gold to recover the outstanding amount. Additionally, high interest rates and hidden charges can increase the overall cost of the loan.
Are you ready for an action-packed week in the stock market? This week, three IPOs are set to open, aiming to raise a total of ₹1,160 crores, with Blackbuck leading the way in the mainboard category, targeting ₹1,114.72 crores. Meanwhile, two SME IPOs — Mangal Compusolution and Onyx Biotec — seek to raise ₹16.23 crores and ₹29.34 crores, respectively.
Not only will investors have these new opportunities, but four highly anticipated listings, including Swiggy, will also hit the bourses, offering a fresh wave of excitement. Let’s look into the details to see what these IPOs and listings store for investors this week.
Blackbuck IPO
The BlackBuck IPO is structured as a book-built issue, seeking to raise a total of ₹1,114.72 crores. This includes a fresh issue of 2.01 crore shares worth ₹550 crores and an offer for sale (OFS) of 2.07 crore shares amounting to ₹564.72 crores. Investors are required to apply for a minimum lot size of 54 shares. The final allotment is expected on November 19, 2024, with a tentative listing date set for November 21, 2024, on the BSE and NSE.
The funds raised through the IPO will be utilized for:
Sales and marketing expenses
Capital infusion into its NBFC subsidiary, Blackbuck Finserve
Product development
General corporate purposes
GMP (Grey Market Premium)
As of November 11, 2024, BlackBuck’s IPO has a GMP of ₹24. Given the IPO’s upper price band of ₹273 per share, the expected listing price is approximately ₹297, reflecting a potential gain of 8.79% per share. The GMP is subject to market sentiment, and investors may find this indicator useful for estimating the stock’s initial market interest.
Company Overview
Founded in April 2015, Zinka Logistics Solution Limited, through its BlackBuck app, provides a comprehensive digital platform for truck operators in India. BlackBuck connects 963,345 truck operators, representing 27.52% of India’s trucking market, facilitating streamlined logistics and transportation services. The app offers various services, including payments, telematics, a freight marketplace, and vehicle financing, empowering truck operators to optimize their business operations.
Regarding financial transactions, BlackBuck processed a Gross Transaction Value (GTV) of ₹173,961.93 million in payments as of March 31, 2024. The platform also had an average of 356,050 active telematics devices each month, indicating widespread adoption of its fleet management solutions. Additionally, BlackBuck facilitated 4,035 loans valued at ₹1,967.88 million for vehicle financing across 48 districts in seven Indian states, extending crucial financial support to its users.
SWOT Analysis of Zinka Logistics Solutions Ltd.
STRENGTHS
WEAKNESSES
Market Leadership: BlackBuck is India’s largest digital platform for truck operators, commanding a significant market share and a vast network.
Diverse Offerings: Its range of services, from telematics to vehicle financing, addresses the varied needs of truck operators, enhancing customer loyalty.
Financial Growth: Strong revenue and PAT growth highlight the company’s scalable business model and financial stability.
Reliance on the Indian Market: BlackBuck’s operations are concentrated in India, and its growth is tied to the local logistics sector, limiting global expansion potential.
High Customer Acquisition Costs: Increasing sales and marketing expenditure, a key IPO objective, indicates higher customer acquisition costs in a competitive market.
OPPORTUNITIES
THREATS
Expanding Digital Adoption: As the Indian logistics industry undergoes digitization, BlackBuck has significant opportunities to increase its user base and product offerings.
Growth in Financing Services: Demand for vehicle financing and other NBFC services offers BlackBuck the potential for diversification and revenue growth.
Regulatory Risks: Changes in financial and logistics regulations could impact BlackBuck’s business operations and revenue streams.
Competition: Increased competition in logistics and digital platforms could challenge BlackBuck’s market share, affecting profitability.
Financial Strength
The company’s financials reflect strong growth. Between FY 2023 and FY 2024, Zinka Logistics Solution Limited reported a 62.24% increase in revenue and a 33.24% rise in profit after tax (PAT). This growth demonstrates BlackBuck’s expanding market footprint and its capacity to leverage operational efficiencies for profitability.
The Mangal Compusolution IPO is a fixed-price issue, aiming to raise ₹16.23 crores entirely through a fresh issue of 36.06 lakh shares. This IPO, set to be listed on the BSE SME platform, has a minimum lot size of 3,000 shares, making the minimum investment required for retail investors ₹135,000. High Net-worth Individuals (HNI) must invest in at least two lots (6,000 shares), totaling ₹270,000. The allotment of shares for this IPO is expected on November 18, 2024, with a tentative listing date of November 20, 2024.
The funds raised from the Mangal Compusolution IPO will be used for:
Capital expenditure to enhance infrastructure and service capabilities
General corporate purposes to strengthen overall business operations
GMP (Grey Market Premium)
The most recent Grey Market Premium (GMP) for Mangal Compusolution’s IPO is ₹3 as of November 11, 2024. Given the issue’s fixed price of ₹45 per share, the estimated listing price is around ₹48, which suggests a potential gain of 6.67% per share on the listing. This GMP estimate offers investors an initial indication of market interest in the IPO, although final prices may vary based on market sentiment.
Company Overview
Founded in April 2011, Mangal Compusolution Limited is a hardware rental service provider. The company offers rental solutions catering to businesses’ IT hardware needs across various industries. Mangal Compusolution’s extensive product offerings include servers, laptops, desktops, projectors, router switches, workstations, Plasma/LCD TVs, PA systems, and various other accessories. This allows the company to provide customizable rental IT solutions to small and large enterprises tailored to meet specific client needs.
While Mangal Compusolution serves clients across India, its major clients are in Maharashtra. The company divides its revenue into three primary segments: rental income from leased IT equipment, sales of IT equipment, and IT equipment maintenance service fees. Mangal Compusolution has established itself as a customer-centric provider with services that minimize client operational disruption.
SWOT Analysis of Mangal Compusolution Ltd.
STRENGTHS
WEAKNESSES
Varied Product Range: Mangal Compusolution offers a wide variety of IT products from well-known brands like HP, Dell, and Lenovo, allowing it to meet the diverse needs of different industries.
Customer Focus: The company’s customer-centric approach includes 24/7 support and maintaining backup equipment to ensure zero client downtime.
Reliable Support: The company offers dedicated support teams and maintains an inventory of extra equipment to minimize service interruptions.
Geographical Dependence: While Mangal Compusolution has a nationwide reach, its client base is concentrated in Maharashtra, which could pose a challenge in diversifying geographically.
Dependence on Equipment Leasing: A significant portion of its revenue relies on IT equipment rentals, leaving the company vulnerable to shifts in demand for leased IT hardware.
OPPORTUNITIES
THREATS
Growing Demand for IT Hardware Rentals: With more companies opting for IT hardware rentals over direct purchases, Mangal Compusolution can expand its client base across various sectors.
Expansion Potential: By increasing its presence in additional states, the company could increase revenue and further its growth.
Market Competition: The IT hardware rental industry faces competition from several established and emerging players, which could impact Mangal Compusolution’s market share.
Technological Advancements: Rapid technological changes could lead to higher maintenance costs or the need for frequent upgrades, impacting profitability if not managed effectively.
Financial Strength
For the fiscal year ending March 31, 2024, Mangal Compusolution saw a 62.24% increase in revenue, with a 33.24% rise in profit after tax (PAT) compared to the previous fiscal year ending March 31, 2023. This financial growth underscores the company’s effective expansion and growing client demand for IT hardware rental solutions.
Onyx Biotec IPO is a book-built issue seeking to raise ₹29.34 crores through a fresh issue of 48.1 lakh shares. The minimum application lot size is 2,000 shares, which requires an investment of ₹122,000 for retail investors.
High Net-Worth Individuals (HNI) can invest in a minimum of two lots (4,000 shares), amounting to ₹244,000. The share allotment for this IPO is expected on November 19, 2024, with the tentative listing date on the NSE SME set for November 21, 2024.
The proceeds from the Onyx Biotec IPO are earmarked for the following purposes:
Upgrading the existing manufacturing Unit I to support large-volume parentals for intravenous use
Installing a high-speed cartooning packaging line at manufacturing Unit II for Dry Powder Injections
Prepayment or repayment of certain loans
General corporate purposes
GMP (Grey Market Premium) of Onyx Biotec Ltd
Onyx Biotec IPO’s last recorded GMP is ₹5, as of November 11, 2024, which puts its estimated listing price at ₹66, considering the IPO price band of ₹61. This suggests a potential gain of 8.20% on the listing price per share. The GMP reflects initial interest in the IPO, but the actual listing price may differ based on demand and market conditions.
Company Overview
Founded in May 2005, Onyx Biotec Limited operates within the pharmaceutical manufacturing sector. The company primarily produces Sterile Water for Injections and is a contract manufacturer for pharmaceutical companies specializing in Dry Powder Injections and Dry Syrups.
Onyx Biotec has a robust production capacity, which is supported by two manufacturing units in Solan, Himachal Pradesh. Unit I has a daily production capacity of 638,889 Sterile Water for injection units. In comparison, Unit II produces 40,000 dry powder injections and 26,667 dry syrup units per day in a single shift.
The company’s clients include well-established pharmaceutical brands like Hetero Healthcare Limited, Mankind Pharma Limited, Sun Pharmaceutical Industries Limited, Aristo Pharmaceuticals Private Limited, and Reliance Life Sciences Limited. Through partnerships with these major players, Onyx Biotec has positioned itself as a reliable contract manufacturer, serving domestic and international markets.
SWOT Analysis of Onyx Biotec Ltd.
STRENGTHS
WEAKNESSES
Established Production Capacity: Onyx Biotec operates two high-capacity manufacturing units, allowing it to meet large-scale production demands.
Reputable Client Base: The company partners with well-known brands, enhancing its market credibility and stability.
Growing Revenue and Profitability: Onyx Biotec’s recent revenue and profit growth reflects a solid financial position and operational efficiency.
High Dependency on Contract Manufacturing: Relying heavily on contract manufacturing might limit the company’s control over its revenue sources and expose it to fluctuations in client demand.
Geographic Concentration of Production Facilities: Both manufacturing units are located in Solan, Himachal Pradesh, which could present logistical challenges if expansion or diversification becomes necessary.
OPPORTUNITIES
THREATS
Increased Demand for Injectable Pharmaceuticals: The rising demand for injectable drugs offers growth potential for Onyx Biotec’s current product lines.
Expansion of International Market Reach: Expanding the company’s client base in overseas markets could enhance revenue growth and diversify income streams.
Regulatory Compliance and Industry Standards: The pharmaceutical industry faces stringent regulatory scrutiny, and any non-compliance could lead to operational disruptions or financial penalties.
Intensified Competition: The contract manufacturing sector is competitive, with many players vying for market share, which may pressure pricing and margins.
Financial Strength
Onyx Biotec has demonstrated significant financial growth in recent years. For the fiscal year ending March 31, 2024, the company’s revenue increased by 35.99%, and its profit after tax (PAT) grew by 64.35% compared to the fiscal year ending March 31, 2023. This financial growth underscores the company’s effective management and increasing demand for its products in the pharmaceutical sector.
Healthcare-focused solution provider Sagility India will be the first to list on the mainboard next week, debuting on November 12, following a 3.2x subscription during the November 5-7 bidding period.
Food delivery giant Swiggy and electricity producer ACME Solar Holdings are set to list on November 13, having garnered 3.59 times and 2.75 times subscriptions, respectively. Meanwhile, trading in shares of Niva Bupa Health Insurance Company will commence on November 14.
With three new IPOs and four notable listings, this week’s activity highlights continued momentum in the public market. Each offering presents opportunities for investors to observe, with companies like Blackbuck and Swiggy capturing significant attention. As these firms take their first steps into the public sphere, this week is a key moment in the IPO landscape. Remember, doing your research is important before investing in any IPO.
Disclaimer Note: The securities quoted, if any, are for illustration only and are not recommendatory. This article is for education purposes only and shall not be considered as a recommendation or investment advice by Equentis – Research & Ranking. We will not be liable for any losses that may occur. Investments in the securities market are subject to market risks. Read all the related documents carefully before investing. Registration granted by SEBI, membership of BASL & certification from NISM in no way guarantee the performance of the intermediary or provide any assurance of returns to investors.
Parenthood is a beautiful journey, but it can also be incredibly overwhelming. New parents find they have umpteen choices, from the smallest diaper to the biggest stroller, creating confusion. For the longest time, meeting children’s needs depended on their parents, families, and friends. The baby products industry was ripe for a revolution in this disorganized landscape.
A parent with a vision to bring order and ease to the lives of new parents decided to fill this gap. This $2.7 billion powerhouse has revolutionized how parents shop, offering a one-stop solution that caters to every need, from the tiniest tot to the curious toddler.
Curious to know more about this game-changer? Read on…
From A Parent’s Frustration
Supam Maheshwari, a seasoned entrepreneur, was tired of constantly searching for quality baby products in India, only to be met with limited options.
Frustrated by this lack of options for children, inspired him to create a one-stop solution for all a parent’s needs.
Maheshwari’s first venture, Brainvisa Technologies, an e-learning startup that faced challenges during the dot-com bubble. However, this didn’t deter him.
With his partner Amitava Saha, an experienced entrepreneur, he decided to leverage their expertise to tackle the gap in the Indian baby care market.
Together, they founded FirstCry in 2010, a platform designed to simplify parenting offering a wide range of high-quality baby products.
A Name That Resonates with Parents
The name “FirstCry” was carefully chosen to capture the essence of parenthood and the brand’s mission to provide everything a baby needs. It resonated with parents looking for a trusted source for their most precious possessions.
Jan 31, 2021
Innovating Baby Essentials
The Indian parenting landscape was evolving. Nuclear families became more common, and parents sought convenient and trustworthy options.
FirstCry entered the market at the perfect time, offering a wider selection of baby care products.
In The Baby Retail Market
However, conquering the baby care market was challenging. Over 90% of the market was dominated by traditional, offline retailers.
FirstCry’s initial strategy involved online distribution from warehouses across major cities.
To offer parents even more choices, they partnered with local retailers, bringing FirstCry’s products to familiar neighborhood store.
Creating Brands That Nutured Children
FirstCry understood that parenthood was more than just buying products. They launched two private labels, BabyHug and CuteWalk, offering high-quality apparel and footwear.
Additionally, they established “FirstCry Parenting,” a vibrant online community where parents could connect, share experiences, and access valuable resources.
Pioneering Their Way To Success
FirstCry became one of the first online retailers in India to recognize the power of physical stores.
In 2012, they started opening offline stores, allowing parents to touch and feel products before buying. Today, they boast over 400 stores across India, offering an integrated online and offline experience.
The Heartfelt Gesture
FirstCry goes beyond just selling products. Their “FirstCry Box” initiative highlights their commitment to parents.
This thoughtful program distributes complimentary gift boxes containing essential items to new parents in over 6,000 hospitals across India.
It’s a small gesture with a big impact, strengthening FirstCry’s reputation as a caring brand.
Stats Tell the Story
FirstCry has grown exponentially, offering a staggering range of over 200,000 unique products from 5,800+ brands. Its physical presence is equally impressive, with over 380 stores across India.
Beyond products, FirstCry has cultivated a thriving online community of 13 million monthly users, creating a space for parents to connect, share experiences, and access valuable resources.
The FirstCry app has been downloaded over 10 million times, making it the go-to destination for parents in over 125 cities.
Offering a Complete Baby Care Solution
FirstCry has strategically partnered with renowned personalities and brands to enhance its image and reach a wider audience.
Amitabh Bachchan, a legendary figure in Indian cinema, serves as the brand ambassador, lending his credibility and star power to FirstCry’s campaigns.
The company has also collaborated with Bollywood actress Lara Dutta to launch ARIAS, an eco-fashion brand for children.
ARIAS focuses on creating sustainable and stylish clothing, aligning with the growing demand for eco-friendly products.
Addressing The Need Gap
The baby care industry is a complex landscape filled with unique challenges. Every aspect requires meticulous attention, from warehousing and logistics to the delicate nature of baby products.
The diverse range of products, from tiny diaper pins to bulky car seats, presents significant operational hurdles.
Moreover, the fragmented market, dominated by unorganized players, adds complexity.
To succeed, businesses must offer a wide range of products, competitive pricing, and exceptional customer service.
For the Future
FirstCry received investments from SoftBank, Late Sir Ratan Tata, Premji Invest, Mahindra & Mahindra, and TPG Growth, making it a unicorn.
This financial backing let the company expand its operations, invest in technology, and acquire strategic assets at a $2.7 billion valuation.
Firstcry acquired BabyOye, a leading online retailer of baby and maternity products, to strengthen its market position and expand its product range.
They acquired Oi Playschool to foray into the early childhood education sector.
Solidified via Quality & Reliability
FirstCry has established a strong foothold in the Indian baby care market, becoming synonymous with quality and reliability.
While it faces competition from online giants like Myntra, Amazon, and local retailers, FirstCry’s robust brand presence and diverse product offerings have enabled it to maintain a leading position.
Advancing Toward a New Era
FirstCry successfully listed at a 40% premium on the stock markets in August 2024, marking a milestone in its journey.
Its YouTube channel now stands as India’s largest parenting platform, offering support and insights to millions.
FirstCry plans to expand its reach with 380 new stores PAN India over the next three years, including exclusive brand and multi-brand outlets, and also enter the Middle East.
As the Indian market evolves, Small and Medium Enterprises (SMEs) increasingly migrate from SME-specific platforms to main stock exchanges. Over 300 SMEs have already made this move, raising questions about their growth potential and sustainability. Could they transform into major market players like Zomato?
Over the past decade, 295 companies have transitioned from the Small and Medium Enterprises platform to the main index, delivering impressive shareholder gains. More than 110 of these firms have achieved returns exceeding 50%, while the top 50 have yielded returns of 250%, showcasing their potential for significant growth and investor satisfaction.
Performance Overview of the SME Index
Small and Medium Enterprises Index has demonstrated impressive annualized gains, reaching 195% over the last decade. These returns highlight the index’s role in attracting investment to SMEs, supporting economic growth, and generating jobs.
On August 28, 2024, the BSE SME IPO Index peaked at 1,14,991 before correcting to 93,747 on October 25 amid foreign institutional investor (FII) sell-offs. Despite volatility, the index bounced off its 200-day EMA, signaling resilience and potential upward movement. According to industry experts, this bounce at a key support level shows strong investor confidence.
Why Are Small and Medium Enterprises Migrating to Main Exchanges
1. Access to Capital: Migrating to a main exchange gives small and medium enterprises access to a broader pool of institutional investors, allowing them to raise capital on more favorable terms. This is essential for SMEs aiming for expansion and market penetration.
2. Increased Visibility and Credibility: Main exchange listing enhances brand visibility and instills confidence in stakeholders, including customers, suppliers, and partners. This credibility is essential for scaling operations and competing with larger, established firms.
3. Regulatory Rigor and Governance: Moving to a main exchange often demands stricter compliance, which can improve corporate governance standards and operational transparency. This structure attracts investors who are cautious of Small and Medium Enterprise risks but value accountability.
Top 15 Small and Medium Enterprises That Migrated to the Main Exchange
Financial Performance of Waaree Renewable Technologies
In the past year, Waaree Renewable Technologies’ share price surged by 544%, making it one of the hottest stocks in the market. In Q2 FY25, the company saw a 160% rise in net profit to INR 53 crore, with sales increasing 250% to Rs. 524 crore, boosting its market cap to Rs. 18,000 crore.
Listed on the BSE SME Index in August 2012, Waaree Renewable moved to the main exchange in 2019 due to market cap and sales growth. Since then, its performance has consistently impressed investors.
Other Successful SME Migrants
Several other companies, including KPI Green Energy, E2E Networks, Jash Engineering, and Gensol Engineering, have shown strong fundamentals. For example, KPI Green Energy’s Q2 revenue rose 70% to INR 361 crore, with profit up 99% to INR 70 crore, indicating solid long-term growth among SMEs transitioning to the main exchange.
Potential Growth Paths for SMEs on Main Exchanges
1. Mimicking Zomato’s Success Story: Zomato’s rapid scale-up and eventual IPO offer a blueprint for how SMEs might get large-scale investment and user engagement. For a tech-driven SME, for instance, exposure on the main exchange can lead to faster scaling, similar to how Zomato leveraged its online platform to dominate the food delivery market.
2. Sector-Specific Opportunities: SMEs in technology, pharmaceuticals, and finance have shown significant growth potential. Those strategically positioned in these high-growth sectors can benefit from shifting consumer demands and favorable policies, such as the government’s “Make in India” initiative.
Challenges SMEs Face on the Main Exchange
Intense Competition: While main exchanges offer growth opportunities, they expose SMEs to intense competition from well-established companies. Many SMEs may struggle to compete due to limited resources or experience.
Cost of Compliance: Meeting the compliance and reporting standards on a main exchange can be costly and complex. For some SMEs, these requirements might strain their finances, impacting profitability.
Maintaining Consistent Growth: Investor expectations can be demanding on the main exchange, requiring SMEs to demonstrate growth and profitability consistently. A lack of sustained growth may cause stock volatility and erode investor confidence.
Will All SMEs Succeed?
While many SMEs may strive to replicate Zomato’s success, not all are positioned for such transformative growth. Success depends on their sector, adaptability, and capacity to innovate. The main exchange offers a platform, but scaling requires robust business models and resilience. Some SMEs may achieve high valuations, while others may take years to gain traction.
Risks and Considerations for Investors
Despite high returns, ex-SME stocks require careful consideration. These companies must establish credibility through consistent profit growth, fair valuations, and sound governance. High promoter risk also makes institutional investors cautious. Tracking these stocks closely is essential for retail investors, as only a select few might evolve into small or mid-cap entities.
Conclusion
SMEs’ migration to main exchanges marks a significant development in India’s capital markets, opening avenues for growth and investment. While not every SME will reach Zomato’s scale, those with unique value propositions and effective governance could become vital players in the long run.
Disclaimer Note: The securities quoted, if any, are for illustration only and are not recommendatory. This article is for education purposes only and shall not be considered as a recommendation or investment advice by Equentis – Research & Ranking. We will not be liable for any losses that may occur. Investments in the securities market are subject to market risks. Read all the related documents carefully before investing. Registration granted by SEBI, membership of BASL & certification from NISM in no way guarantee the performance of the intermediary or provide any assurance of returns to investors.
FAQs
What does “300 SMEs leap Main Exchange” mean?
This means 300 small and medium-sized enterprises (SMEs) have decided to list their shares on a main stock exchange, like the NSE or BSE in India. This allows them to raise capital from a wider pool of institutional investors.
Why is this a significant development?
This is a significant development because it indicates growing confidence in the Indian economy and the potential of SMEs. Listing on the main exchange gives these companies credibility and access to a larger investor base, which can fuel their growth and innovation.
What does this mean for the future of the Indian economy?
This development signifies a new era for the Indian economy, where SMEs are increasingly important. As more and more SMEs list on the main exchange, it can increase economic activity, job creation, and overall growth. It also highlights the potential of the Indian startup ecosystem and its ability to produce innovative and high-growth companies.
Niva Bupa Health Insurance’s recent ₹2,200 crore IPO has sparked significant interest among investors. With a strong first-day subscription of 65%, the market is buzzing with anticipation. Let’s look deeper into the details of this IPO and explore what it offers to potential investors.
The Niva Bupa Health Insurance IPO, launched on November 7, 2024, is open for subscription until November 11, 2024. This IPO, structured as a book-built issue, aims to raise ₹2,200 crores by combining a fresh issue and an offer for sale (OFS) component. Specifically, the fresh issue consists of 10.81 crore shares valued at ₹800 crores, while the OFS includes 18.92 crore shares amounting to ₹1,400 crores.
Investors must apply for a minimum lot size of 200 shares, translating to a minimum retail investment of ₹14,800. Meanwhile, the minimum investment required for small non-institutional investors (sNII) is set at ₹207,200 for 2,800 shares, and for big non-institutional investors (bNII), the minimum is ₹1,006,400 for 13,600 shares.
After the allocation, which is expected to be finalized by November 12, 2024, Niva Bupa’s shares are slated to list on both the BSE and NSE on November 14, 2024. Source: SEBI
The Niva Bupa Health Insurance IPO attracted solid attention on its opening day, achieving a 65% subscription. Investors bid for 11.19 crore shares against the 17.28 crore shares available. Here’s how the different investor categories contributed on Day 1:
The company aims to allocate the IPO proceeds to achieve two primary objectives:
Augmentation of Capital Base: To strengthen the company’s solvency levels, supporting its financial stability and long-term growth.
General Corporate Purposes: Funds may also be used for other corporate needs as determined by management.
Grey Market Premium (GMP)
The GMP for Niva Bupa Health Insurance IPO is currently ₹0 (as of November 8, 2024). With the price cap at ₹74, the estimated listing price is also expected to be around ₹74, indicating no anticipated premium or discount. This stable GMP suggests market confidence in the company’s valuation, though the premium could change in the days leading to listing based on demand. Source: Livemint
Company Overview
Founded in 2008, Niva Bupa Health Insurance is a joint venture between Bupa Group and Fettle Tone LLP, established to serve the health insurance needs of individuals and families across India. With a strong focus on technology and customer service, the company’s key offerings include:
Retail Health Products: Tailored for individuals and families.
Group Health Products: Designed for corporate clients.
As of March 31, 2024, the company served 14.73 million active insured lives and operated in 22 states and four union territories. Recent initiatives, including a mobile application and website, emphasize digital tools for customer convenience.
Financial Strength
Niva Bupa Health Insurance has demonstrated consistent financial growth in recent years, supported by increasing demand within India’s health insurance sector. Between the fiscal years ending March 31, 2023, and March 31, 2024, the company’s revenue surged by 44.05%, and its profit after tax (PAT) grew substantially by 552.73%.
This growth reflects Niva Bupa’s strategic expansion and operational improvements, including a focus on retail and group health products. Gross written premiums (GWP), a key measure of growth in the insurance industry, also expanded significantly, growing at a compound annual growth rate (CAGR) of 41.27% from fiscal years 2022 to 2024. Retail health premiums alone recorded a CAGR of 33.41%, underscoring the company’s increasing foothold in the individual and family health insurance markets. Source: SEBI
Diverse Product Portfolio: A broad range of products catering to individual and group health insurance needs.
Strong Digital and Automated Systems: Uses AI-driven technology, including machine learning lead scoring, CRM, and telemarketing tools, to enhance customer engagement and service efficiency.
Trusted Brand Parentage: Bupa Group’s established reputation in healthcare and health insurance lends credibility to Niva Bupa.
Experienced Claims Management: The company brings expertise in handling claims and managing provider relationships, which are critical in health insurance.
Heavy Dependence on Technology: While advantageous, high reliance on digital tools can lead to operational vulnerabilities, particularly in data security and technical issues.
Relatively Young in Market Tenure: Compared to some competitors, Niva Bupa is a younger player, which could impact brand loyalty and customer acquisition in some segments.
OPPORTUNITIES
THREATS
Increasing Demand for Health Insurance: Rising healthcare costs and awareness about health insurance in India present an expanding market opportunity.
Potential to Penetrate Untapped Markets: With a presence in 22 states and four union territories, Niva Bupa can still expand to other regions within India.
Innovation in HealthTech: There is scope to leverage AI, mobile apps, and digital platforms further for personalized health solutions, which could lead to increased customer retention.
High Competition in Health Insurance: The Indian health insurance market is competitive, with established players and new entrants vying for market share.
Regulatory Changes: Any changes in health insurance regulations could impact pricing, operational costs, and growth.
Economic Downturn: Customers may prioritize essential expenditures during financial slowdowns, impacting premium collection and profitability.
Conclusion
With good financial performance, a diversified product portfolio, and a promising Day 1 subscription, Niva Bupa Health Insurance’s IPO has garnered investors’ attention. The absence of a Grey Market Premium may suggest a stable listing, which investors will closely watch in the coming days.
Disclaimer Note: The securities quoted, if any, are for illustration only and are not recommendatory. This article is for education purposes only and shall not be considered as a recommendation or investment advice by Equentis – Research & Ranking. We will not be liable for any losses that may occur. Investments in the securities market are subject to market risks. Read all the related documents carefully before investing. Registration granted by SEBI, membership of BASL & certification from NISM in no way guarantee the performance of the intermediary or provide any assurance of returns to investors.
Hindalco, a leading player in the metals sector, recently saw its shares drop by 6% after its U.S.-based subsidiary Novelis reported an 18% decline in second-quarter profits. This downturn reflects Novelis’s various operational challenges, significantly impacting Hindalco’s overall valuation due to its reliance on the subsidiary for international operations.
Hindalco Industries Limited is part of the Aditya Birla Group, a prominent aluminum and copper manufacturing company. It operates domestically and internationally, with Novelis being one of its major assets in the global market. Novelis specializes in rolled aluminum products and has a strong foothold in North America, making it a key contributor to Hindalco’s revenue and profit structure.
Novelis reported an 18% decline in profit for Q2, highlighting challenges in its operational environment. Here are some key aspects of Novelis’ recent performance:
The company faced a demand reduction, leading to lower revenue. It reported an 18% decline in net income, totaling $128 million for the September quarter of 2024-25.
The income decline is attributed to a $61 million charge due to production interruptions at the Sierre plant, higher restructuring and impairment expenses, and Weaker operating performance.
Net sales for Q2 increased by 4.5%, reaching $4,295 million, compared to $4,107 million in the same quarter last year.
EBITDA per tonne stood at $489/t, with adjusted EBITDA at $462 million for the quarter.
The decrease in EBITDA was largely due to higher aluminum scrap prices, an unfavorable product mix, and flood-related disruptions at the Sierre plant.
Additional factors contributed to a substantial dip in Novelis’ profitability, triggering concern among Hindalco’s investors.
Stock Performance Over the Past Year
Hindalco shares have gained approximately 37% over the last 12 months, outperforming the Nifty 50 index, which rose by 26% over the same period.
Market Reaction to Hindalco’s Stock
Following Novelis’ Q2 results, Hindalco’s shares fell by 6%, reflecting investor apprehension over the company’s profitability and growth trajectory. This reaction is rooted in Hindalco’s dependence on Novelis as a revenue stream, and the profit contraction in the subsidiary could have a prolonged impact on Hindalco’s financial stability.
The market response can be attributed to several underlying concerns:
Reliance on Novelis for Revenue: Investors recognize that Hindalco’s performance is highly correlated with Novelis. Any adverse performance in Novelis quickly translates into diminished earnings for Hindalco.
Impact on Earnings per Share (EPS): Lower profits from Novelis are expected to affect Hindalco’s EPS in upcoming quarters, making it less attractive to investors focused on growth and dividend income.
Future Growth Concerns: Given Novelis’ challenges, the market is wary of Hindalco’s short-term growth prospects, which could impact its valuation.
Potential Impact on Hindalco’s Financial Health
Novelis’ performance dip presents several implications for Hindalco’s financial health and strategic direction. Some of the potential effects include:
Short-Term Earnings Volatility: Hindalco might experience volatility in its earnings, especially if Novelis continues to face operational and market challenges. The profit margins could remain pressured, influencing Hindalco’s overall profitability.
Need for Diversification: The dependence on Novelis may prompt Hindalco to explore additional growth opportunities in other regions or sectors to minimize the impact of Novelis’ performance on its consolidated results.
Investor Sentiment and Stock Valuation: Continued weakness in Novelis’ results might lead to a conservative outlook from analysts, affecting Hindalco’s stock rating and valuation multiples in the near term.
Strategic Response from Hindalco and Novelis
To counteract Novelis’s challenges, Hindalco may implement several strategies to restore investor confidence and improve profitability. Here are potential steps that Hindalco and Novelis could consider:
Operational Efficiency Initiatives: Both companies may optimize operational efficiency to reduce costs. This could involve streamlining supply chain processes and adopting energy-efficient technologies to lower production expenses.
Hedging Against Input Costs: Hindalco might use hedging strategies to manage raw material and energy cost fluctuations, which would provide some protection against price volatility.
Product Portfolio Diversification: By expanding into other product lines or enhancing existing ones, Novelis could mitigate its reliance on any one sector, like automotive, which has shown instability.
Expansion into Emerging Markets: Hindalco and Novelis might look toward emerging markets, where demand for aluminum is expected to grow due to infrastructure projects and industrialization. These markets could offer new revenue streams and counterbalance challenges in North America.
Outlook for Hindalco Industries
Despite the current setback, the company has a track record of adapting to market fluctuations. In the long term, Hindalco could recover if it manages to leverage growth opportunities, particularly as the demand for sustainable and lightweight materials grows across industries. Here’s a look at the factors that could support Hindalco’s future growth:
Sustainability Initiatives: Both companies invest heavily in sustainable manufacturing practices, including recycling initiatives. This focus aligns well with the global shift toward sustainability, potentially attracting new clients in the eco-conscious markets.
Focus on Premium Products: Novelis can emphasize premium offerings like high-strength aluminum alloys, which are in demand in aerospace and electric vehicle (EV) manufacturing. These premium products command higher margins and are less susceptible to price wars.
Growth in Electric Vehicles (EVs): The ongoing shift to electric vehicles presents a substantial opportunity for aluminum manufacturers. Lightweight materials are essential for enhancing EV efficiency, and Novelis could capture this growing demand by strengthening its EV sector partnerships.
Conclusion
The recent 6% drop in Hindalco’s share price underscores Novelis’ financial performance’s impact on the parent company. While challenges persist, Hindalco’s proactive strategies and strong industry position could help it navigate this period of volatility. By focusing on operational efficiencies, diversifying its product offerings, and expanding into emerging markets, Hindalco could strengthen its foundation for future growth.
Investors may need to monitor the company’s forthcoming quarters to see if these strategies positively impact its financial health. As the global economic landscape evolves, Hindalco’s ability to adapt and leverage new opportunities will determine its long-term stability and attractiveness as an investment option.
Disclaimer Note: The securities quoted, if any, are for illustration only and are not recommendatory. This article is for education purposes only and shall not be considered as a recommendation or investment advice by Equentis – Research & Ranking. We will not be liable for any losses that may occur. Investments in the securities market are subject to market risks. Read all the related documents carefully before investing. Registration granted by SEBI, membership of BASL & certification from NISM in no way guarantee the performance of the intermediary or provide any assurance of returns to investors.
FAQs
Why did Hindalco shares decline significantly?
Hindalco shares experienced a significant decline due to the disappointing Q2 results of its subsidiary, Novelis. Novelis, a leading producer of aluminum rolling and recycling products, reported an 18% profit drop.
This decline was primarily attributed to lower aluminum prices, increased input costs, and weaker demand in specific key markets. As Novelis is a major contributor to Hindalco’s overall performance, its underperformance negatively impacted the parent company’s stock price.
How does Novelis’s performance impact Hindalco’s overall business?
Novelis is a significant subsidiary of Hindalco and contributes substantially to its overall revenue and profitability. Therefore, any decline in Novelis’s performance directly impacts Hindalco’s financial health. As Novelis is a key player in the global aluminum industry, its challenges can reflect broader industry trends and impact Hindalco’s prospects.
What are the potential implications of this decline for Hindalco’s shareholders?
The decline in Hindalco’s share price due to Novelis’s weak performance can have implications for its shareholders. Short-term investors may experience losses on their investments.
However, long-term investors may view this as a buying opportunity, as the decline may be overstated and the company’s fundamentals remain strong. It’s important for shareholders to closely monitor the situation and assess the long-term prospects of both Hindalco and Novelis.
The Indian market celebrated Trump’s win in the US Presidential elections with a good surge in the major indices. The market saw a short-term boost, driving the indices to their biggest single-day rise in over six weeks. The Nifty 50 jumped 1.12%, reaching 24,484.05, while the Sensex rose by 1.13%, hitting 80,378.13. A few other stocks followed the green suit and made it to the list of top performers for the day.
As the market opens at 9:00 AM today, we present 20 stocks to consider adding to your watchlist. Here are ten stocks with the highest trading volume and ten stocks based on their performance at yesterday’s market close.
Top 10 performers from NIFTY 500 based on the closing figures of 6th November 2024:
Disclaimer Note: The securities quoted, if any, are for illustration only and are not recommendatory. Past performance is not indicative of future results.
Understanding the Top 5 stocks of the list:
Kaynes Technology Ltd.:
Kaynes Technology, established in 2008, leads in electronics manufacturing and IoT solutions, managing everything from design to lifecycle support. It serves key sectors like automotive, aerospace, defense, and IT. In FY2024, Kaynes reported revenue of Rs.1,804.6 crore, and its net profit also grew to Rs.183.28 crore, up from Rs.95.16 crore the previous year.
Although net profit for the June 2024 quarter dipped slightly to Rs.51 crore compared to March 2024, the stock has still delivered a 139.19% return over the past year, as of 6th November 2024. (Source: Annual Report)
Syrma SGS Technology Limited:
Founded in 2004 in Chennai, Syrma SGS Technology Limited provides electronics manufacturing services (EMS) to multiple industries. It supports OEMs across the entire product journey, from concept to large-scale production, with a focus on high-mix volume output. Syrma SGS exports to over 20 countries, highlighting its global presence.
In FY2024, Syrma SGS acquired a 51% stake in Johari Digital Healthcare, a MedTech device developer, and merged its subsidiaries SGS Tekniks and SGS Infosystems. The company achieved a revenue of Rs.3,212.4 crore, marking a 54% year-on-year increase, with exports contributing Rs.811.7 crore (26%). Profit after tax (PAT) reached Rs.124.3 crore, and its return on capital employed (RoCE) stood at 9.9%. (Source: Annual Report)
Dixon Technologies Limited:
Dixon Technologies has been a leader in India’s electronic manufacturing services (EMS) since 1993. Starting with color TVs in 1994, it expanded into consumer durables, home appliances, lighting, mobile phones, and security devices. Dixon also provides repair and refurbishment services for products like set-top boxes, mobile phones, and LED TVs.
Working with top global and Indian brands, it serves as both an original equipment manufacturer (OEM) and an original design manufacturer (ODM). In FY2024, a partnership with Japan’s Rexxam to make air conditioner circuit boards brought in Rs.362 crores. Total revenue for FY2024 hit Rs.17,690.9 crores, marking 45% growth, while PAT rose 47% to Rs.3,749 crores. (Source: Annual Report)
Kalyan Jewellers India Ltd.:
Kalyan Jewellers India Ltd., founded by Chairman and MD Mr. T.S. Kalyanaraman, is one of India’s top five gold jewelry retailers, holding about 6% of the organized market. It designs, manufactures, and sells a wide range of gold and studded jewelry across various price points. With 253 stores across India and the Middle East, the company operates in 23 states and union territories, with 204 showrooms covering major cities.
Its asset-light growth strategy and progress with Candere, soon a wholly-owned subsidiary, reflect its commitment to innovation. In FY2024, Kalyan Jewellers cut non-GML loans by Rs.34.9 crore and increased GML limits by Rs.70.9 crore, lowering working capital loans by Rs.64 crore overall. It generated Rs.18548.3 crore in revenue and a net profit of Rs.596.3 crore. (Source: Annual Report)
Supreme Industries Limited:
Supreme Industries Limited is a top plastic product manufacturer in India, with products across segments like Plastic Piping Systems, Cross Laminated Films, Protective Packaging, Industrial Moulded Components, and Moulded Furniture. It holds a 30.78% stake in Supreme Petrochem Ltd (SPL), which is set to expand with its MASS ABS Project’s first line launching by Q4 of FY2024-25.
In FY2023-24, Supreme Industries recorded net revenue of Rs.10,134.20 crore, achieving a 26.3% growth in product turnover by volume. The company’s PAT was Rs.1,016.17 crore, and its earnings per share (EPS) stood at Rs.80.00. (Source: Annual Report)
Top 10 volume gainers from NIFTY 500 based on the trade volume of 6th November 2024 vs the past one week’s average:
Sno
Symbol
Volume
Volume Change %
1
CCL
8473915
9091.68 %
2
ECLERX
1390879
1659.38 %
3
TIMKEN
374644
542.92 %
4
MEDPLUS
640076
505.33 %
5
ROUTE
461353
463.13 %
6
TITAN
4522891
457.79 %
7
GRANULES
6689249
426.26 %
8
MANKIND
1820051
425.17 %
9
KAYNES
1679694
376.74 %
10
HINDZINC
11646144
332.2 %
(source: NSE on 6th November 2024)
Disclaimer Note: The securities quoted, if any, are for illustration only and are not recommendatory. Past performance is not indicative of future results.
Understanding the stocks of the list:
Continental Coffee Limited:
CCL, originally named The Sahayak Finance and Investment Corporation Limited in 1961, rebranded as Continental Coffee Limited in 1994, shifting focus to instant coffee. In 2002, it was renamed CCL. The company produces, trades, and distributes coffee across India, Vietnam, and Switzerland, with subsidiaries in these countries playing a major role.
As of FY2024, CCL’s wholly-owned subsidiaries include Jayanti Pte (Singapore), Continental Coffee SA (Switzerland), Ngon Coffee (Vietnam), Continental Coffee Pvt Ltd (India), and CCL Food and Beverages Pvt Ltd (India).
CCL reported a turnover of Rs.2653.70 crore in FY2024, up from Rs.2071.22 crore in FY2023. However, net profit fell to Rs.250.08 crore from Rs.283.96 crore the previous year. An interim dividend of Rs.2.50 per equity share was paid during FY2023-24. (Source: Annual Report)
EClerx Services Limited:
EClerx Services Ltd, founded in 2000, provides business process management, automation, and analytics to Fortune 2000 clients in sectors like financial services, retail, media, and technology. It offers advanced analytics, automation, technical support, and digital care to help clients boost sales and retention while cutting costs.
In FY2024, EClerx reported Rs.2925.54 crore in operating income, marking a 10.5% increase, with a PAT of Rs.511.73 crore. The company’s stock has grown at a 25% CAGR over five years, delivering strong returns beyond dividends and buybacks. For the June 2024 quarter, operating revenue increased by 14.2% year-over-year to Rs.781.9 crore, with an EBIT of Rs.155.6 crore. (Source: Annual Report)
Timken India Limited:
Timken India Limited, originally Tata Timken Limited, was founded in 1987 as a joint venture between Tata Steel and The Timken Company. Starting production in Jamshedpur in 1992, each partner initially held a 40% stake, with the public owning the rest. In 1999, Timken acquired Tata Steel’s shares, rebranding the company as Timken India Limited in July 1999.
Timken India manufactures and distributes anti-friction bearings, components, accessories, and mechanical power transmission products across various sectors. It also offers maintenance contracts, refurbishment, and industrial services. The company operates on a calendar year for financials. As of Q3 ending September 2024, Timken India reported revenue of approximately Rs.9529.93 crore ($1.13 billion) and an EBITDA of Rs.1602.42 crore ($190 million). (Source: Annual Report)
MedPlus Health Sevices Limited:
MedPlus is a leading pharmacy retail company with both online and offline stores, established in 2006. Today, it’s India’s second-largest pharmacy retailer by revenue and store count, with 4,407 stores across 10 states and one union territory. MedPlus offers a wide range of products, including pharmaceuticals, wellness items, and FMCG goods.
In FY2024, it reported a revenue of Rs.747.73 crore, reflecting a growth of 23.42% from the previous year, along with a net profit of Rs.65.58 crore. Over the past five years, the company has achieved a 40% CAGR in profit growth. (Source: Annual Report)
Route Mobile Limited:
Route Mobile Limited is a top provider of cloud communication services, specializing in CPaaS (Communications Platform as a Service). It offers messaging, voice, email, SMS filtering, analytics, and monetization solutions to clients worldwide. In May 2024, Route Mobile joined the Proximus Group after Proximus Opal acquired a 57.56% stake in the company.
For the quarter ending June 2024, Route Mobile reported net sales of Rs.1103.42 crore, marking a 14.07% increase from June 2023. However, its net profit for the same period was Rs.78.52 crore, reflecting a 15.06% decrease compared to the previous year. (Source: Annual Report)
Market watchers believe that Trump’s victory could help stabilize stock markets by reducing volatility and refocusing on fundamentals. The domestic market saw strong buying, especially in the IT sector, as there are expectations of higher IT spending in the US. However, investors are advised to stay cautious and make decisions based on thorough research.
Benchmark indices dipped early on Tuesday as investors awaited the results of the US elections and the Fed’s policy review. Concerns over weak domestic quarterly results added to market jitters, raising doubts about sustaining current stock valuations. However, the market gained momentum in the second half, led by a banking sector rally that reversed the trend. By the close, the NIFTY was up 0.85%, reaching 24,229.05, while the SENSEX rose 0.88% to 79,476.63. Several other stocks followed suit, making it to the top performers’ list for the day.
As the market opens at 9:00 AM today, we present 20 stocks to consider adding to your watchlist. Here are ten stocks with the highest trading volume and ten stocks based on their performance at yesterday’s market close.
Top 10 performers from NIFTY 500 based on the closing figures of 5th November 2024:
Disclaimer Note: The securities quoted, if any, are for illustration only and are not recommendatory. Past performance is not indicative of future results.
Understanding the Top 5 stocks on the list
Gland Pharma Ltd.:
Founded in Hyderabad in 1978, Gland Pharma began as a contract manufacturer of liquid parenteral products. It’s among the largest injectable-focused companies, operating in over 60 countries, including the U.S., Europe, Canada, Australia, and India. With its B2B model, Gland Pharma specializes in developing, manufacturing, and marketing complex injectables. Promoted by Shanghai Fosun Pharma, the company has rapidly expanded across the value chain.
In FY2024, it launched over 89 products, producing nearly 100 crore units. Revenue reached Rs.5664.7 crore, growing 56% year-on-year, with a profit after tax of Rs.772.5 crore and a PAT margin of 14%. Gland Pharma invested Rs.177.4 crore in R&D and kept its debt-to-equity ratio at a low 0.04. The company’s net worth reached Rs.8723.8 crore in FY2024, with a five-year CAGR of 25%. (Source: Annual Report)
Mangalore Refinery And Petrochemicals Ltd.:
Mangalore Refinery & Petrochemicals Limited (MRPL) began as a joint venture between the AV Birla Group and HPCL and is now a subsidiary of ONGC. MRPL refines crude oil, produces petrochemicals, trades aviation fuels, and operates retail outlets and terminals. It entered the retail market with the HiQ brand and now has 101 outlets across Karnataka and Kerala.
In FY24, retail sales volumes reached 2.6 MMT, valued at Rs.15,408 crore, up from 2.3 MMT and Rs.13,428 crore in FY23. The turnover for FY24 was Rs.1,05,190 crore, down from Rs.1,24,686 crore in FY23, but profit rose to Rs.3,596 crore from Rs.2,638 crore. MRPL’s debt-equity ratio improved from 1.70 to 0.94. It recently signed a long-term RLNG supply contract with BPCL, and its joint venture, SMAFL, is expanding aviation fuel operations in South India. (Source: Annual Report)
Himachal Futuristic Communications Limited:
HFCL Ltd. is a prominent telecom infrastructure company known for its extensive product range, including Optical Fiber Cable (OFC), WiFi systems, cloud-based network management, high-density cabinets, PCL splitters, railway communication solutions, and Ethernet.
The company holds the largest market share in India’s OFC segment. Among its recent achievements, HFCL executed one of the largest Control and User Plane Separation (CUPS) broadband networks for BSNL. General Atomics—ASI selected it to develop crucial subsystems for advanced Unmanned Aircraft Systems (UAS).
In the September 2024 quarter, HFCL partnered strategically with General Atomics Aeronautical Systems in the U.S. to develop sub-systems for high-end uncrewed aerial vehicles. The company reported a revenue of Rs.2251.85 crores, reflecting a 6.89% year-on-year increase, with EBITDA at Rs.357.19 crores (up 15.45%) and PAT at Rs.183.98 crores (up 26.25%). HFCL’s order book currently stands at Rs.6151 crores. (Source: Annual Report)
Jindal SAW Ltd.:
Jindal SAW Ltd. is a leading global manufacturer of iron and steel pipes, fittings, and accessories, with facilities in India, the USA, Europe, and the UAE (MENA region). As the market leader in large-diameter Submerged Arc Welded (SAW) pipes, Jindal SAW serves major oil and gas companies, engineering firms, and water resource authorities worldwide. These products are used in oil and gas exploration, transportation, power generation, and water supply.
The company produces LSAW, HSAW, DI, seamless pipes, and carbon, alloy, and stainless steel welded pipes, with a capacity exceeding 4,25,000 MTPA. These pipes cater to petroleum, sugar, steel, automotive, and power industries. In FY2024, Jindal SAW recorded Rs.17,961.96 crore in revenue with a PAT of Rs.1,614.11 crore. Total pipe production, including pig iron, reached around 17,39,795 MT, up from approximately 12,98,598 MT in FY2023. (Source: Annual Report)
Adani Energy Solutions Limited:
AESL, part of the Adani portfolio, is a diverse player in the energy sector with expertise in power transmission, distribution, smart metering, and cooling solutions. It is India’s largest private transmission company, managing over 20,400 circuit kilometers of transmission lines and a 54,600 MVA transformation capacity.
In the September 2024 quarter, AESL raised Rs.8,373 crore through a QIP, marking the largest fundraising event in India’s power sector. The company reported operating revenue of Rs.6,183.7 crore, a PAT of Rs.773.15 crore, a net worth of Rs.20,832.15 crore, and a cash reserve ratio (CRR) of Rs.2,436.53 crore. With a debt-to-equity ratio 1.78 and a net profit margin of 12.16%, AESL remains a major player in the power industry. (Source: Annual Report)
Top 10 volume gainers from NIFTY 500 based on the trade volume of 5th November 2024 vs the past week’s average:
Sno
Symbol
Volume
Volume Change %
1
GLAND
5756367
6199.79 %
2
CHEMPLASTS
4490024
2294.91 %
3
MRPL
30378457
1630.38 %
4
KEC
2492466
917.9 %
5
ALKYLAMINE
297412
724.33 %
6
ABB
2177411
565.28 %
7
RAYMOND
1189377
549.23 %
8
JKPAPER
1885200
527.91 %
9
BATAINDIA
1134015
471.51 %
10
ROUTE
294153
450.1 %
(source: NSE on 5th November 2024)
Disclaimer Note: The securities quoted, if any, are for illustration only and are not recommendatory. Past performance is not indicative of future results.
Understanding the stocks of the list:
Chemplast Sanmar Limited:
Chemplast Sanmar is a leading specialty paste PVC resin producer and ranks second in India for Suspension PVC. It’s a pioneer in dichloromethane, offering custom manufacturing for pharmaceuticals, agrochemicals, and fine chemicals.
In FY2024, Chemplast Sanmar reported a revenue of Rs.3923 crore and an EBITDA of Rs.26 crore, though it faced a loss of Rs.158 crore. Despite this, its stock has shown resilience, delivering an 8.07% one-year return as of 5th November 2024. (Source: Annual Report)
KEC International Ltd.:
KEC International is a leading global EPC infrastructure company, excelling in power transmission, railways, civil and urban infrastructure, solar, oil and gas pipelines, and cables. Part of the RPG Group, it operates across 110+ countries. For FY2024, KEC reported a revenue of Rs.19,914 crore and a net profit of Rs.347 crore. It constructed 2,516 km of transmission lines and had a manufacturing capacity of 4,32,200 MTPA by FY2024. Its order book stood at Rs.30,161 crore in December 2023 and Rs.29,644 crore at the end of FY2024. (Source: Annual Report)
Alkyl Amines Chemicals Limited:
Alkyl Amines, founded by Mr. Yogesh Kothari in 1979, is a leading manufacturer of aliphatic amines in India. With over 100 products, it is a global player in items like acetonitrile, DEHA, DMA-HCLA, and Triethylamine, serving industries such as pharmaceuticals, agrochemicals, and water treatment in over 50 countries.
In FY 2023-24, Alkyl Amines launched a new plant at its Kurkumbh site in Maharashtra to enhance Ethyl Amines production. Additionally, a 4.6 MW solar plant in Talegadh, Gujarat, began operations in January 2024. For FY2024, the company reported revenue of Rs. 1,600.57 crore, a decrease of 14.19%, and a profit after tax (PAT) of Rs. 148.87 crore, down 34.89%. (Source: Annual Report)
ABB India Limited:
ABB India Limited is a comprehensive power equipment manufacturer offering a full range of engineering products, solutions, and services in automation and power technology. As a subsidiary of ABB Ltd, a global leader in electrification and automation, ABB India benefits from centralized R&D facilities and pays royalties to its parent company. ABB also provides management support with board delegates in ABB India.
The company operates on a calendar year for its financial records. As of the third quarter ending September 2024, ABB India reported a 2% growth in orders, totaling around Rs.68,907.15 crore ($8,193 million). Revenue also grew by 2%, reaching approximately Rs.68,553.91 crore ($8,151 million). The operational EBITDA saw a notable increase of 12%, amounting to around Rs.13,061.49 crore ($1,553 million). (Source: Annual Report)
Raymond Limited:
Raymond Limited has been a significant player since 1925. It is involved in textiles, apparel, real estate, FMCG, and engineering. It operates in over 55 countries, including the USA, Europe, Japan, and the Middle East. With 1,638 stores worldwide—1,589 in India and 49 abroad—it is a leading manufacturer of worsted suiting fabric. In June 2023, Raymond demerged its lifestyle business, forming Raymond Lifestyle Limited (RLL).
In FY2024, Raymond expanded by acquiring a 59.25% stake in Maini Precision Products Limited (MPPL). The company reported strong financial results, with revenue reaching Rs.9,286 crore for FY2024. In the first quarter ending June 2024, Raymond’s net profit from continuing operations rose 26.7% to Rs.57.04 crore, up from Rs.45.02 crore in the same quarter last year. Revenue also increased significantly to Rs.937.65 crore, compared to Rs.473.37 crore in June 2023. (Source: Annual Report)
The market dipped significantly due to sharp foreign outflows and geopolitical concerns but showed signs of recovery by the day’s end. While the market’s medium- to long-term outlook remains positive, short-term volatility is likely, as the market could react in either direction. A cautious approach is advised in light of this uncertainty, as sudden shifts may continue to impact stock values.
The major Indian indices seemed gripped by the red trend on Monday, as the index fell against the backdrop of the uncertainties fueled by the US elections and the FOMC (Federal Open Market Committee) interest rate decision. The bearish market pattern continued to drag the NIFTY below 24000, at 23,995 by the end of the day. Even the SENSEX dropped 1.2% to end the day at 78782.24. However, some stocks still resiliently made it to the list of top performers for the day.
As the market opens at 9:00 AM today, we present 20 stocks to consider adding to your watchlist. Here are ten stocks with the highest trading volume and ten stocks based on their performance at yesterday’s market close.
Top 10 performers from NIFTY 500 based on the closing figures of 4th November 2024:
Disclaimer Note: The securities quoted, if any, are for illustration only and are not recommendatory. Past performance is not indicative of future results.
Understanding the Top 5 stocks of the list:
Fine Organic Industries Ltd.:
Founded in 1970 by Mr. Ramesh Shah and Mr. Prakash Kamat, Fine Organics is India’s largest oleochemical-based additives manufacturer. It ranks among the top six global players in polymer additives and specialty food emulsifiers. The company’s additives serve industries such as food, plastics, cosmetics, and coatings. By FY2024, Fine Organics exported to over 80 countries and had a portfolio of 510+ products.
In the June 2024 quarter, 45% of its revenue came from domestic sales, while 55% came from exports. The company’s revenue for this quarter was Rs.550 crore, with a PAT of Rs.113 crore and a PAT margin of 20.6%. (Source: Annual Report)
Firstsource Solutions Limited:
Firstsource Solutions Limited, part of the RP-Sanjiv Goenka Group, is a key player in Business Process Management (BPM). The company provides customized services in Banking, Healthcare, Communications, Media, and Technology. With over 150 global clients, Firstsource works with 18 Fortune 500 companies and 3 FTSE 100 firms.
In FY23, 66% of the company’s revenue came from the US, while 33% came from the UK. For FY2024, Firstsource reported a net profit of Rs.515 crore, an asset base of Rs.60,800 crore, and revenue of Rs.6,340 crore, showing 5.2% growth. The operating margin was 11%, and the dividend yield was 1.21%. In the quarter ending June 2024, net sales reached Rs.1,791.10 crore, a 17.13% increase from the same quarter in 2023. (Source: Annual Report)
Rainbow Children’s Medicare Limited:
Rainbow Children’s Medicare Limited, founded in 1998, is India’s top pediatric multi-specialty hospital chain. It offers vital services like newborn and pediatric intensive care, along with obstetrics and gynecology. With 19 hospitals across six cities and 1,935 beds, it’s the largest pediatric hospital network in the country. Its hospitals in Hyderabad and Bengaluru, plus BirthRight Fertility in Kondapur, were the first in India to receive JCI accreditation.
By FY2024, Rainbow reported a revenue of Rs.1,296.9 crore and a profit after tax of Rs.218.3 crore. The return on capital employed (ROCE) decreased to 21% from 24.61% due to expansion efforts. The company has also enhanced its services, introducing IVF at 11 hospitals and opening three new spoke hospitals in Hyderabad, Bengaluru, and Chennai. (Source: Annual Report)
Gillette India Ltd.:
Gillette India Limited is a public company that excels in grooming and oral care, featuring brands like Fusion5, MACH3, Guard3, Styler, and Presto. It follows a June-May fiscal calendar. For the year ending June 2024, Gillette reported a total income of Rs.2,659.18 crore, a 6.4% increase from Rs.2,499.23 crore the previous year. In the quarter ending June 2024, income was Rs.649.91 crore.
Nearly debt-free, Gillette achieved a net profit of Rs.418.75 crore for FY2024. Its one-year returns were impressive at 50.72% as of October 29, 2024, outperforming the NIFTY50’s 28.45%. The company’s three-year compound annual growth rate (CAGR) for revenue stands at a steady 9.2%. (Source: Annual Report)
Happy Forgings Limited:
Happy Forgings Limited, established in July 1979, is a leading Indian manufacturer of heavy forgings and high-precision machined components. It ranks as the fourth largest producer of complex, safety-critical components in India. HFL primarily serves domestic and global OEMs in the commercial vehicle sector and also supports industries like farm equipment, oil and gas, power generation, railways, and wind turbines.
As of FY2024, HFL holds an AA/STABLE rating from CRISIL and ICRA. It is the second-largest producer of commercial vehicles and high-horsepower industrial crankshafts, boasting an annual forging capacity of 120,000 tonnes. For FY2024, the company reported revenue of Rs.138 crore, marking a 16% growth, while profit after tax (PAT) reached Rs.243 crore, up by 27%. HFL’s PAT margin stands at 17.9%, and its return on capital employed (ROCE) is 21.8%. (Source: Annual Report)
Top 10 volume gainers from NIFTY 500 based on the trade volume of 4th November 2024 vs the past one week’s average:
Sno
Symbol
Volume
Volume Change %
1
FINEORG
259677
1508.6 %
2
PVRINOX
2186664
618.8 %
3
KIMS
789648
470.85 %
4
ZENSARTECH
2263937
428.56 %
5
CAMS
1135515
419.26 %
6
RAINBOW
2710740
400.32 %
7
BAJAJHLDNG
110638
388.15 %
8
HAPPYFORGE
70219
323.46 %
9
VGUARD
1246115
305.07 %
10
WELCORP
1770691
296.07 %
(source: NSE on 4th November 2024)
Disclaimer Note: The securities quoted, if any, are for illustration only and are not recommendatory. Past performance is not indicative of future results.
Understanding the stocks of the list:
PVR Inox Limited:
The merger of PVR Ltd. and INOX Leisure Ltd. in 2022-23 transformed the Indian entertainment landscape, creating the largest multiplex chain in the country. By FY2024, the company achieved 80-90% of its targeted capabilities, operating 1,754 screens across 361 cinemas in 113 cities in India and Sri Lanka. This includes 258 premium and special format screens, making up about 15% of its total.
Post-merger, the company adopted a capital-light model and reduced costs. It plans to cut overall capex in FY’25 by around 25% compared to FY’24 and has partnered with developers for new screen investments. In FY’24, it closed 85 underperforming screens and aims to shut down 70 more in FY’25. The average ticket price increased by 10% to Rs.259, while total revenue rose 17% to Rs.6,203.7 crore. The profit after tax (PAT) was Rs.114.3 crore, with a PAT margin of 1.8%. (Source: Annual Report)
Krishna Institute of Medical Sciences Ltd.:
Krishna Medical Institution Ltd (KIMS), founded in 1973, is one of the largest healthcare groups in Andhra Pradesh and Telangana. It offers a wide range of services, from basic to advanced care, especially in tier-2 and tier-3 cities, with high-quality care available in major cities. KIMS operates 12 centers of excellence with 4,000 beds and 40 specialties across Telangana, Andhra Pradesh, and Maharashtra.
For FY2024, KIMS has a debt-to-equity ratio below 0.75. In 2023-24, it reported revenue of Rs.2,511.2 crore and a profit after tax (PAT) of Rs.336 crore. By June 2024, KIMS achieved a net quarterly revenue of Rs.688.40 crore, a 13.59% increase year-on-year, and a quarterly net profit of Rs.86.60 crore, up 7.16% year-on-year basis. (Source: Annual Report)
Zensar Technologies Limited:
Zensar Technologies is a leading digital solutions and technology services company. It is part of the RPG group based in Mumbai and has its headquarters in Pune, India. The company operates in two main segments: Application Management Services and Infrastructure Management Services. It focuses on industry verticals like Hi-Tech and Manufacturing, Consumer Services, Banking, Financial Services, and Insurance. Zensar has offices in India, the USA, the UK, Europe, and Africa.
For the financial year ending March 2024, Zensar reported a revenue of Rs.38,823 crore. Its net profit was Rs.1,815 crore, nearly doubling from FY2023’s profit of Rs.863 crore. The company’s EBITDA stood at Rs.4,063 crore, while its net worth reached Rs.12,742 crore. The return on capital employed (ROCE) was 13.3% for the same year. (Source: Annual Report)
Computer Age Management Services Ltd:
CAMS is India’s leading mutual funds transfer agency, offering investor services, distributor services, and asset management company services. It is the country’s largest registrar and transfer agent, holding about 69% of the market share. CAMS provides technology-driven and compliance services, along with brokerage computation. The company has a robust presence with 280 service centers across 25 states and 5 union territories.
As of FY2024, CAMS holds a 40% market share in managed policies, with assets under management reaching Rs.36.7 lakh crore and a transaction volume of 59.85 crore. It also became the first RTA at GIFT City to establish full-stack operations for AIFs. The company achieved an impressive 18% year-on-year revenue growth to Rs.34.5 crore. In the June 2024 quarter, net sales rose to Rs.331.40 crore, a 26.83% increase from the previous year, while net profit reached Rs.108.21 crore, up 41.75%. (Source: Annual Report)
Bajaj Holdings & Investment Limited:
Bajaj Holdings & Investment Ltd. operates as an investment company registered as a Non-Banking Financial Institution with the Reserve Bank of India. The company holds over a 36% stake in both Bajaj Auto Ltd. and Bajaj Finserv Ltd. It was demerged from the former Bajaj Auto Ltd., transferring its manufacturing operations to Bajaj Auto and its wind farm and financial services operations to Bajaj Finserv.
As of the half-year ending September 2024, Bajaj Holdings generated a total income of Rs.65,184 crore. The profit after tax (PAT) was Rs.3,047 crore, compared to Rs.2,907 crore in H1 2023-24. All properties, assets, investments, and liabilities from the previous Bajaj Auto Ltd., except for the manufacturing and strategic business operations, remain with Bajaj Holdings. (Source: Annual Report)
The Nifty 50 had a tough start to the week, with bears taking control and pushing the index below its August low during intraday trading. Traders are feeling cautious as volatility has reached a three-month high. Currently, the index is below all key moving averages, which is concerning. While it’s natural to feel panicked during such times, it’s important to stick to your strategies and approach the market with patience.
Samvat 2080 is around the corner, yet the market missed the Diwali luster as it ended in the red zone on Thursday. A sharp sell-off in IT and FMCG stocks pulled the front-line indices down, although support from the pharma sector helped limit the losses. As a result, the Nifty 50 ended Thursday’s session down 0.56%, settling at 24,205. Meanwhile, the Sensex dropped by 0.70%, finishing at 79,386. Despite the drops, a few stocks maintained their green shades and made it to the list of top performers for the day.
As the market opens at 9:00 AM today, we present 20 stocks to consider adding to your watchlist. Here are ten stocks with the highest trading volume and ten stocks based on their performance at yesterday’s market close.
Top 10 performers from NIFTY 500 based on the closing figures of 31st October 2024:
Disclaimer Note: The securities quoted, if any, are for illustration only and are not recommendatory. Past performance is not indicative of future results.
Understanding the Top 5 stocks of the list:
RattanIndia Enterprises Limited:
RattanIndia Enterprises Limited, the flagship of the RattanIndia Group, drives new-age tech businesses in e-commerce, electric vehicles, and drones. Through its digital lending platform, Wefin, it offers instant personal loans, two-wheeler loans, and credit cards by partnering with major banks and NBFCs across India. Its subsidiary, NeoSky India Ltd, is pioneering the drone industry with a 360° portfolio in Drone-as-a-Product and Drone-as-a-Service, expanding its dealer network from 32 to 115 stores in 97 cities across 20 states.
In FY24, consolidated total income surged by 50% to Rs.6,192 crore, with profit after tax rebounding to Rs.424 crore from a previous loss of Rs.286 crore. RattanIndia’s e-commerce arm, Cocoblu, offers a vast selection of 50 lakh unique items, achieving Rs.5,506 crore in revenue—a 35% growth—and an EBITDA of Rs.149 crore, reflecting a 60% year-on-year rise. (Source: Annual Report)
Elgi Equipments Limited:
Elgi Equipments Ltd., founded in 1960, is a mid-cap company in the Electric/Electronics sector. It offers over 400 products, such as air compressors, automotive equipment, and medical air systems. As of FY2024, it operates in over 120 countries.
For 2023-24, Elgi recorded an operating revenue of Rs.3217.8 crore, marking a 6% growth, with a net profit of Rs.311.9 crore and a robust ROCE of 305%. Over three years, the company’s stock delivered a 232.94% return, with a 31.11% increase in the last year (as of 31st October 2024). On that date, the stock’s price-to-earnings (P/E) ratio stood at 64.77. (Source: Annual Report)
Cipla Limited:
Cipla, founded in 1935, is a top Indian pharmaceutical company that works in APIs, respiratory care, and Cipla Global Access. India is its largest market, followed by Africa and North America. Cipla ranks third in India’s pharmaceutical sector and leads in prescription drugs in South Africa. It exports widely, focusing on emerging markets and Europe, with 46 manufacturing sites globally producing over 1,500 products across 78 countries.
In FY2024, Cipla received CDSCO approval to launch the antibiotic plazomicin in India. It also partnered with Sanofi India for CNS product distribution and teamed up with CSIR-CDRI on a new ophthalmic solution. Financially, Cipla achieved a 13% revenue growth, reaching Rs.25,774 crore, with a 31% ROCE. It reduced debt to Rs.247 crore and reported a profit of Rs.4,154 crore, reflecting a 16% PAT margin. (Source: Annual Report)
DOMS Industries Ltd.:
Founded in 2006, DOMS Industries Limited is a leading name in stationery and art supplies, holding a strong 29% share in pencils and 30% in math instrument boxes as of FY23. India’s second-largest player in branded stationery, DOMS, expanded into the Back-to-School segment by acquiring a 51% stake in SKIDO Industries in FY24. Its product line now includes seven categories, and with over 4,750 distributors, DOMS exports to more than 50 countries.
In the June 2024 quarter, the company saw a 17.3% year-on-year revenue growth, reaching Rs.445 crore, while PAT surged by 49.5% to Rs.54.3 crore. It also achieved a PAT margin of 12.2%. (Source: Annual Report))
Rainbow Children’s Medicare Limited:
Rainbow Children’s Medicare Limited, founded in 1998, leads India’s pediatric multi-specialty hospital network. It offers vital newborn and pediatric intensive care, as well as obstetrics and gynecology services. Operating 19 hospitals across six cities with 1,935 beds, Rainbow is the largest pediatric hospital chain in the country. Notably, its hospitals in Hyderabad and Bengaluru, plus the BirthRight Fertility center in Kondapur, were India’s first to receive JCI accreditation.
In FY2024, Rainbow reported Rs.1,296.9 crore in revenue and Rs.218.3 crore in profit after tax. While its return on capital employed (ROCE) dipped to 21% from 24.61% due to new expansions, the company has continued growing, adding IVF services at 11 hospitals and opening three new spoke hospitals in Hyderabad, Bengaluru, and Chennai. (Source: Annual Report)
Top 10 volume gainers from NIFTY 500 based on the trade volume of 31st October 2024 vs the past one week’s average:
Sno
Symbol
Volume
Volume Change %
1
DCMSHRIRAM
781008
1608.5 %
2
GRINDWELL
791588
1445.28 %
3
RTNINDIA
47268532
1287.89 %
4
RAINBOW
2450121
1201.38 %
5
ELGIEQUIP
864864
719.15 %
6
CIPLA
17447648
687.7 %
7
CHEMPLASTS
705019
603.85 %
8
DOMS
501790
508.26 %
9
AIAENG
227291
454.33 %
10
ASAHIINDIA
573414
397.03 %
(source: NSE on 31st October 2024)
Disclaimer Note: The securities quoted, if any, are for illustration only and are not recommendatory. Past performance is not indicative of future results.
Understanding the stocks of the list:
DCM Shriram Limited:
DCM Shriram, part of the DCM Group founded by Sir Shri Ram, operates across diverse sectors. Its agri-rural division spans urea, sugar, ethanol, and hybrid seeds, while the Chloro-Vinyl business offers caustic soda, chlorine, and PVC products. The company also handles power, cement, and Fenesta Building Systems, a specialized business for UPVC and aluminum windows and doors.
In FY2024, DCM Shriram’s total revenue reached Rs.10,922 crore, with a net worth of Rs.6,476.3 crore. Despite a 51% drop in net profit to Rs.447 crore, recent quarterly results show improvement. The company’s June 2024 quarter recorded a net profit of Rs.100.30 crore, marking a 77.27% increase from Rs.56.58 crore in the same period last year. Its dividend payout stood at 22.9%. (Source: Annual Report)
Grindwell Norton Ltd.:
Grindwell Norton Ltd. started with grinding wheels in India and has now expanded into abrasives, ceramics, and performance plastics. It became part of the Saint-Gobain Group in 1990, with Saint-Gobain holding a 51.66% stake today. The company also operates a subsidiary, Saint-Gobain Ceramic Materials Bhutan Private Limited, in Bhutan.
For FY2024, Grindwell Norton reported revenue of Rs.2686.77 crore, a PAT of Rs.383.96 crore, and a net profit margin of 19.21%. It maintains a strong dividend payout ratio of 49% and has minimal debt. Over the past five years, the company has achieved a solid profit growth of 18.6% CAGR while keeping a consistent dividend payout of 46.1%. (Source: Annual Report)
Chemplast Sanmar Limited:
Chemplast Sanmar leads in specialty paste PVC resin production and ranks second in India for Suspension PVC. As a pioneer in Chloromethanes, it also offers custom manufacturing solutions for sectors like pharmaceuticals, agrochemicals, and fine chemicals. In FY2024, Chemplast Sanmar’s revenue reached Rs.3923 crore, with an EBITDA of Rs.26 crore, though it reported a loss of Rs.158 crore. Despite this, its stock has delivered a 7.85% one-year return as of 31st October 2024. (Source: Annual Report)
AIA Engineering Ltd.:
AIA Engineering Ltd. manufactures high-chrome grinding media, liners, and diaphragms—key components in crushing and grinding for the cement, power, and mining sectors. AIA is a trusted partner in these industries, delivering innovative products and solutions that boost productivity. Operating across 120+ countries, it has five manufacturing clusters and over ten warehouses. To diversify, AIA is expanding its non-grinding media business with a Rs.200 crore investment, Rs.110 crore of which has already been utilized.
It also recently added a group captive hybrid (wind and solar) project in Gujarat, increasing renewable capacity to 37.38 MW. In FY 2024, AIA reported Rs.4,853.76 crore in revenue and a PAT of Rs.1,136.99 crore, achieving a 23% PAT margin. (Source: Annual Report)
Asahi India Glass Ltd.:
Asahi India Glass Ltd. (AIS) stands as India’s top value-added glass solutions provider, leading in automotive and architectural glass. Founded in 1984, it emerged as a joint venture between the Labroo Family, Japan’s Asahi Glass Co., and Maruti Suzuki India Ltd., delivering complete glass solutions from manufacturing to installation. AIS operates 12 advanced plants across 8 locations and 10 sub-assembly units.
With a 75% market share, it dominates the passenger car segment in India. In FY2024, AIS posted Rs.4,365.86 crore in revenue, marking an 8% rise from FY2023, along with Rs.327.89 crore in profit after tax and a proposed 200% dividend per share. Notably, AIS became India’s first float glass producer to use “Green Hydrogen” at its F3 plant. (Source: Annual Report)
On Thursday, the main Indian indices closed in the red, while the broader market showed mixed results. The Nifty Midcap 100 index fell by 0.40%, but the Small Cap 100 index rose over 1.15%. Plus, the Nifty 50 ended October down 6.22% at 24,205, mainly due to high valuations, ongoing selling by foreign institutional investors (FIIs), and worries about slowing earnings growth. In this uncertain environment, it’s important to stick to your strategies and proceed cautiously as market sentiment remains volatile.
Indian indices resumed their declining phase after a two-day recovery. While volatility spiked to a two-month high, the indices closed lower to wash the gains of the previous two trading sessions. The NIFTY closed the day at 24340.85, and the SENSEX closed at 79,942.18. However, a few stocks managed to make it to the list of top performers despite the drops in the market.
As the market opens at 9:00 AM today, we present 20 stocks to consider adding to your watchlist. Here are ten stocks with the highest trading volume and ten stocks based on their performance at yesterday’s market close.
Top 10 performers from 30th October NIFTY 500
Based on the closing figures of 30th October 2024:
Disclaimer Note: The securities quoted, if any, are for illustration only and are not recommendatory. Past performance is not indicative of future results.
Understanding the Top 5 stocks of the list:
Action Construction Equipment Limited:
Action Construction Equipment Ltd (ACE) is one of India’s most diversified equipment manufacturers, serving infrastructure, logistics, construction, manufacturing, and agriculture sectors. ACE offers a range of products, including hydraulic mobile cranes, forklifts, backhoe loaders, compactors, tractors, and harvesters. With a rapid service network across 100+ locations, ACE is also the world’s largest pick-and-carry crane manufacturer, reaching over 37 countries.
Founded in 1995 and publicly listed in 2006, ACE saw a strong FY2024 with a 35.86% income rise to Rs.2,990.9 crore. Profit after tax soared by 90% to Rs.327.64 crore. Revenues grew across segments, with cranes up by 37.75% to Rs.2,104.59 crore, construction equipment by 54.82% to Rs.386.21 crore, material handling by 8.60% to Rs.183.69 crore, and agri equipment by 12.06% to Rs.237.05 crore. Net profit margin stands at 11.25%. (Source: Annual Report)
Capri Global Capital Limited:
Capri Global Capital Limited (CGCL) is a leading non-banking financial company (NBFC) in India. It is focused on offering loans for MSMEs, housing finance, and construction finance. Driven by its vision to support financial inclusion, CGCL has expanded its reach nationwide, helping businesses and individuals achieve their financial goals.
For FY 2024, CGCL recorded a net profit of Rs.388.75 crore, with a Return on Capital Employed (ROCE) of 12.66%, and generated revenue of Rs.13.35 billion. This steady performance highlights CGCL’s strong position in the financial sector, contributing meaningfully to its clients’ growth and the wider community. (Source: Annual Report)
Data Patterns (India) Limited:
Data Patterns (India) Limited is one of India’s fastest-growing Defence and Aerospace Electronics companies. With over 35 years in the business, it provides end-to-end solutions and develops innovative indigenous products for space, air, land, and sea platforms, like the LCA-Tejas, Light Utility Helicopter, and BrahMos missile.
Its in-house design capabilities span the full range of aerospace and defense electronics, from processors and power systems to RF equipment and embedded software. In FY2024, Data Patterns reported Rs.519.8 crore in revenue and Rs.181.69 crore in net profit, and the company is almost debt-free. It achieved an 87.3% CAGR profit growth over five years and maintains a healthy 19.9% dividend payout. (Source: Annual Report)
Poonawalla Fincorp Limited:
Poonawalla Fincorp Limited, formerly known as Magma Fincorp, is an RBI-registered NBFC specializing in consumer and MSME financing alongside general insurance. In FY22, it partnered with digital aggregator platforms to drive growth, focusing on retail customers with an average ticket size of Rs.3.5 lakhs as of March 2022. With plans to expand this segment by 15-20% by FY25, the company is also enhancing digital services.
Poonawalla Fincorp reported strong financial performance, with assets under management (AUM) growing 52% to Rs.26,972 crore and net interest income rising 42% to Rs.676 crore. As of FY2024, Profit after tax (PAT) increased by 46%, reaching Rs.292 crore. For the same year, the company also posted a low net NPA of 0.32% and an ROA of 4.62%. (Source: Annual Report)
Redington Limited:
Redington Limited, founded in 1993, is a top distributor of IT and mobility products, serving regions across India, the Middle East, Turkey, and Africa. Around 10% of its revenue — nearly Rs.8409 crore ($1 billion) — now comes from subscription-based models, including Infrastructure, Platform, and Software as a Service. Redington handles end-to-end logistics, from procurement to distribution, selling directly to resellers and dealers. It also provides after-sales and third-party logistics through its subsidiaries.
Redington’s automated distribution centers are located in Chennai, Kolkata, and Dubai, supporting a vast network of over 50,000 business partners. For FY 2024, Redington reported a revenue of Rs.89,610 crore with a net profit of Rs.1219 crore, achieving a Return on Capital Employed (ROCE) of 22.5% and a Return on Equity (ROE) of 17.0%. (Source: Annual Report)
Top 10 volume gainers from30th October NIFTY 500
Based on the trade volume of 30th October 2024 vs the past one week’s average:
Sno
Symbol
Volume
Volume Change %
1
CGCL
23178129
19579.43 %
2
REDINGTON
17864597
1852.98 %
3
DATAPATTNS
3047628
1720.47 %
4
HONAUT
67634
1583.93 %
5
VTL
1824008
1038.4 %
6
MARICO
13797761
696.51 %
7
ITI
3929521
692.56 %
8
LXCHEM
7004637
645.36 %
9
TORNTPHARM
3410175
631.16 %
10
ABCAPITAL
29299209
429.13 %
(source: NSE on 30th October 2024)
Disclaimer Note: The securities quoted, if any, are for illustration only and are not recommendatory. Past performance is not indicative of future results.
Understanding the stocks of the list:
Honeywell Automation India Limited:
HAIL started in 1987 as a joint venture between Tata and Honeywell, originally called Tata Honeywell Limited. In 2004, Honeywell Asia Pacific Inc. acquired Tata’s stake, renaming it Honeywell Automation India Limited. HAIL leads in integrated automation, software, and process solutions, offering turnkey Automation & Control systems. It’s a Fortune 500 company with a wide product range, including environmental, combustion, and sensing controls. Additionally, it provides engineering services in automation and control globally.
As of FY2024, HAIL’s revenue stands at Rs.40,582 crore, growing 18% year-over-year. Profit after tax (PAT) reached Rs.5,014 crore with a 14% growth rate, while its net worth hit Rs.36,062 crore, marking a 13% increase. The company’s dividend payout ratio is 18%, with a 5-year revenue CAGR of 11.5% and a PAT CAGR of 15.2%. (Source: Annual Report)
Vardhman Textiles Limited:
Vardhman Textiles Limited is a leading Indian textile manufacturer specializing in yarn, fabrics, acrylic fiber, garments, and special steel. The company produces 240,000 metric tons of yarn and 220 million meters of woven fabric each year. With subsidiaries like Vardhman Acrylics Limited, it operates in 75 countries and ranks among India’s top three woven fabric manufacturers.
Since 2022, net profits have declined. In FY2024, the profit after tax (PAT) was Rs.608 crore, with a PAT margin of 6.31%. Although revenue dropped from Rs.9841 crore in FY2023 to Rs.9299 crore, the company’s net worth increased to Rs.8805 crore. On a positive note, Vardhman’s stock has performed well, providing a 3-year return of 17.70% and a 1-year return of 28.54% as of 30th October 2024. (Source: Annual Report)
Marico Limited:
Marico Limited is a leading consumer goods company in India focused on beauty and wellness. Operating since 1990, it has reached over 25 countries in Asia and Africa, offering popular brands in hair care, skin care, edible oils, healthy foods, male grooming, and fabric care. Currently, 95% of its brands lead their markets.
Marico impacts the lives of 1 in 3 Indians with trusted names like Parachute, Saffola, Hair & Care, Nihar Naturals, and Beardo, among others. In the quarter ending June 2024, the company reported a revenue of Rs.9,653 crore, with 26% coming from international business (Rs.2,521 crore) and a net profit of Rs.1,470 crore. (Source: Annual Report)
ITI Ltd.:
ITI Limited, India’s first public sector unit post-independence, is a key player in telecom manufacturing. It focuses on providing telecom equipment and services, especially for telephone communication. In FY2023, ITI Limited signed an MOU with C-DOT to transfer technology for 4G radios and received a Rs.2,421.49 crore order from BSNL for indigenous 4G technology.
For FY2024, it secured a Rs.300 crore order for solar street light systems in Bihar under the Mukhyamantri Gramin Solar Street Light Yojana. Additionally, it received its first Electronic Voting Machine (EVM) order from West Bengal’s State Election Commission for 500 sets. In the June 2024 quarter, ITI Limited reported revenue of Rs.519.98 crore but faced a loss of Rs.91.08 crore. Despite this, the net loss improved from Rs.102.6 crore the previous year. (Source: Annual Report)
Laxmi Organic Industries Limited:
Laxmi Organic Industries Limited, founded in 1989, focuses on specialty chemicals. It primarily produces Ethyl Acetate, Acetic Acid, and Diketene Derivative Products (DDP). With operations in over 30 countries and 11 offices in India, it stands as a leader in Acetyl, Ketene, and DiKetene intermediaries in India and ranks among the top five globally.
In FY2024, the company’s revenue reached Rs.2893.2 crore, with a net worth of Rs.1797.6 crore. As of 30th October 2024, its stock provided a one-year return of 6.02%. However, its quarterly net profit for June 2024 was Rs.34.35 crore, down 10.38% from Rs.38.33 crore in June 2023. (Source: Annual Report)
Mixed global cues, weak corporate earnings, and persistent FII selling led to a volatile market on Wednesday. Plus, NIFTY at this rate is headed to mark one of the worst months since the pandemic. In a market like this, it is suggested that you maintain a cautious stance and invest only after thorough research.
The primary indices rebounded on Tuesday during the second half of the trading session and closed the day in the green. The recovery was mainly fueled by strong performances from major players, which also helped keep the markets positive for the second day. As a result, the Nifty 50 closed up by 0.52%, reaching 24,466. Meanwhile, the Sensex gained 0.45%, closing the day at 80,368. A few other stocks stayed on top of the green zone and entered the list of top performers for the day.
As the market opens at 9:00 AM today, we present 20 stocks to consider adding to your watchlist. Here are ten stocks with the highest trading volume and ten stocks based on their performance at yesterday’s market close.
Top 10 performers from 29th October NIFTY 500
Based on the closing figures of 29th October 2024:
Disclaimer Note: The securities quoted, if any, are for illustration only and are not recommendatory. Past performance is not indicative of future results.
Understanding the Top 5 stocks of the list:
Deepak Fertilisers and Petrochemicals Corporation Limited:
Founded in 1979, Deepak Fertilisers and Petrochemicals Corporation Ltd. spans fertilizers, agri services, bulk chemicals, mining chemicals, and real estate. It’s India’s sole producer of Prilled and Medical-grade Ammonium Nitrate and leads in IPA manufacturing and marketing. The company also produces NP Prill 24:24:0 fertilizer, Bentonite Sulphur, and specialty fertilizers.
With plants in Maharashtra, Andhra Pradesh, Haryana, and Gujarat, Deepak Fertilisers reported Rs.2,281 crore revenue in Q1 FY2025, slightly down by 1.4% due to lower commodity prices. Despite this, its EBITDA margin rose to 20.4% from 12.1% YoY, with a net profit growth of 75.7% to Rs.200 crore, giving an 8.8% net profit margin. In July 2024, the NCLT approved the demerger of the TAN business. (Source: Annual Report)
Syrma SGS Technology Limited:
Founded in 2004 in Chennai, Syrma SGS Technology Limited is an electronics manufacturing services (EMS) provider for various industries. It supports OEMs throughout the product journey, from concept to mass production, with a focus on high-mix volume output. Syrma SGS exports to over 20 countries, emphasizing global reach.
In FY2024, the company acquired a 51% stake in Johari Digital Healthcare, a MedTech device developer, and merged two of its subsidiaries, SGS Tekniks and SGS Infosystems. Its revenue reached Rs.3,212.4 crore, a 54% year-on-year increase, with exports contributing Rs.811.7 crore (26%). The company’s profit after tax (PAT) was Rs.124.3 crore, and its return on capital employed (RoCE) stood at 9.9%. (Source: Annual Report))
Gillette India Ltd.:
Gillette India Limited, a public company, leads in grooming and oral care with brands like Fusion5, MACH3, Guard3, Styler, and Presto. The company follows the June- May calendar for its financial records. For the year ending June 2024, it reported a total income of Rs.2659.18 crore, marking an increase of around 6.4% from the previous year’s Rs.2499.23 crore. As of the quarter ending June 2024, this figure was Rs.649.91 crore.
Nearly debt-free, Gillette posted an FY2024 net profit of Rs.418.75 crore. Its 1-year returns stood strong at 50.72% as of 29th October 2024, outperforming the NIFTY50’s 28.45%. The company’s 3-year CAGR revenue is steady at 9.2%. (Source: Annual Report)
JSW Infrastructure Limited:
JSW Infrastructure Limited, part of the JSW Group, began operations in 2006, offering maritime services like cargo handling, storage, and logistics. As India’s second-largest commercial port operator, it has a 170 MTPA capacity and manages two port terminals in the UAE with an additional 41 MTPA. In February 2024, JSW partnered with the Jawaharlal Nehru Port Authority to establish two liquid berths with a 4.5 MTPA capacity.
Its September 2023 IPO, priced between Rs.113-119 per share, saw strong demand, oversubscribing by 37 times. JSW’s FY2024 results showed a big improvement, with net debt reduced to Rs.65 crore from Rs.2,216 crore and earnings rising to Rs.4,032 crore. (Source: Annual Report)
Vedant Fashions Limited:
Vedant Fashions Limited is a key player in the Indian celebration wear market, providing a wide range of brands for every festive occasion. As the largest company in men’s Indian wedding and celebration wear, VFL’s flagship brand, Manyavar, leads the industry. The company has also expanded with brands like Mohey, Twamev, Mebaz, and Manthan, reaching customers across India and internationally in the USA, Canada, the UK, and the UAE.
Despite facing an unusual Q1 FY25, marked by minimal wedding dates, VFL achieved a strong gross margin of 67.7% and healthy EBITDA and PAT margins of 47.8% and 26.1%, respectively. In the June 2024 quarter, VFL reported a revenue of Rs.239.8 crore and a net profit of Rs.62.5 crore, with an impressive ROCE of 85.27%. (Source: Annual Report)
Top 10 volume gainers from 29th October NIFTY 500
Based on the trade volume of 29th October 2024 vs the past one week’s average:
Sno
Symbol
Volume
Volume Change %
1
GILLETTE
850450
5279.19 %
2
KSB
1260516
1283.17 %
3
SYRMA
28958733
1205.03 %
4
KPIL
1134608
852.99 %
5
FEDERALBNK
67922263
741.02 %
6
JSWINFRA
16829216
620.7 %
7
SUMICHEM
3115341
614.68 %
8
SAPPHIRE
1975369
405.09 %
9
MANYAVAR
416824
393.5 %
10
RAMCOCEM
2046350
370.77 %
(source: NSE on 29th October 2024)
Disclaimer Note: The securities quoted, if any, are for illustration only and are not recommendatory. Past performance is not indicative of future results.
Understanding the stocks of the list:
KSB Limited:
KSB is a top supplier of pumps and valves from Germany, operating two companies in India: KSB Limited and MIL Controls Ltd. Established in 1960 and based in Pune, KSB India manufactures pumps, valves, and control systems, catering to a growing market. The company has invested in modern facilities to produce centrifugal pumps and industrial valves and distributes these products across the Indian subcontinent. It has manufacturing plants in Pimpri, Chinchwad, Khandala, Vambori, Coimbatore, and Sinnar.
KSB India’s robust infrastructure includes seven manufacturing units, four zonal offices, 14 branch offices, six service stations, over 350 authorized service centers, 22 warehouses, and more than 1,100 dealers. By June 2024, KSB India reported a total income of Rs.655.5 crore and a net profit of Rs.89.9 crore. (Source: Annual Report)
Kalpataru Power Transmission Limited:
Kalpataru Power Transmission Ltd, established in 1981, is a leading global EPC company specializing in power transmission, distribution, oil and gas pipelines, railways, and biomass power generation. Part of the Kalpataru Group, it operates in 73 countries and oversees over 250 projects across more than 30 nations. The company recently expanded into Sweden and Brazil through acquisitions of Linjemontage and Fasttel.
With a record-high order book of Rs.58,415 crores—up 27%—Kalpataru secured a US$900 million oil and gas pipeline order from Aramco in FY24 and ventured into underground tunneling. It achieved its highest-ever revenue of Rs.19,626 crores, maintained stable net debt at Rs.2,591 crores, and reported a PAT of Rs.516 crores. (Source: Annual Report)
Federal Bank Limited:
The Federal Bank Limited, established in 1931 as Travancore Federal Bank, is a prominent bank in India. It provides retail and corporate banking services, including debit cards and foreign exchange. With 1,504 branches and 2,015 ATMs, it serves around 1.85 crore customers, making it Kerala’s largest private-sector bank.
In FY2024, the bank reported its highest-ever profit after tax (PAT) of Rs.3,721 crore, a 24% increase from last year. Net advances rose to Rs.2,09,403 crore, up 20%, while total deposits reached Rs.2,52,534 crore, marking an 18% growth. The return on equity (ROE) is 14.73%, with a proposed dividend payout of 7.85%. The capital adequacy ratio stands at 16.13%, and the net NPA is 0.60%. The bank’s assets under management (AUM) grew by 34% to Rs.12,192 crore. (Source: Annual Report)
Sumitomo Chemical India Ltd.:
Sumitomo Chemical India Ltd. (SCIL) is a major player in agrochemicals, animal nutrition, and environmental health, backed by its parent company, Sumitomo Chemical. SCIL offers various technical and formulation products and has achieved backward integration for some. The integration of Excel Crop Care has enhanced its portfolio of generics and specialty products, strengthening its position in India’s crop protection market. SCIL also operates globally, including in Africa.
In FY2024, it acquired a majority stake in Barrix Agro Sciences, which specializes in pheromones. The company reported a revenue of Rs.2,843.9 crore for FY2024, with a profit after tax (PAT) of Rs.369.7 crore and a return on capital employed (ROCE) of 20.8%. (Source: Annual Report)
Sapphire Foods India Limited:
Sapphire Foods India Limited is one of the largest QSR companies in the country. It is supported by Sapphire Foods Mauritius Limited and private equity investors. The company has a solid ownership structure featuring a 25.1% equity lock-in with YUM. The company operates more than 400 outlets for KFC, Pizza Hut, and Taco Bell across India, Sri Lanka, and the Maldives.
In FY2024, Sapphire Foods saw a revenue increase of 15%, totaling Rs.2588 crore. For the June 2024 quarter, it reported a net profit of Rs.8.19 crore. Over the last five years, Sapphire Foods has achieved a remarkable 26% CAGR in profit growth, showcasing its strong performance in the QSR market. (Source: Annual Report)
Indian indices turned around today. The Nifty50 started off slow but made a strong comeback in the afternoon. There’s potential for the index to reach a higher range at this recovery rate. However, it’s essential to stay true to your portfolio strategy. Allow the short-term outlook to influence your portfolio only after carefully researching all market components.
The market finally snapped its five-day declining streak, with the Nifty PSU Bank Index leading the way with a 4% growth. Positive global cues, a 6% drop in crude oil prices, and a short-covering rally led to Monday’s recovery. Consequently, the NIFTY closed at 24,339, and the SENSEX closed the day at 80,005, marking a 0.6% gain. A few other stocks ended green and made it to the list of top performers for the day.
As the market opens at 9:00 AM today, we present 20 stocks to consider adding to your watchlist. Here are ten stocks with the highest trading volume and ten stocks based on their performance at yesterday’s market close.
Top 10 performers from 28th October NIFTY 500
Based on the closing figures of 28th October 2024:
Disclaimer Note: The securities quoted, if any, are for illustration only and are not recommendatory. Past performance is not indicative of future results.
Understanding the Top 5 stocks of the list:
Syrma SGS Technology Limited:
Syrma SGS Technology Limited, founded in 2004 in Chennai, specializes in electronics manufacturing services (EMS) across multiple industries. It offers complete solutions, from concept development to large-scale production, helping OEMs with product co-creation and realization. Known for its high-mix volume production, Syrma SGS exports to over 20 countries.
In FY2024, it acquired a 51% stake in Johari Digital Healthcare, a MedTech device developer, and merged its subsidiaries, SGS Tekniks and SGS Infosystems. The company’s revenue hit Rs.3,212.4 crore, marking a 54% year-on-year growth, with Rs.811.7 crore (26%) from exports. Profit after tax (PAT) reached Rs.124.3 crore, and its return on capital employed (RoCE) stood at 9.9%. (Source: Annual Report)
Firstsource Solutions Limited:
Firstsource Solutions Limited, part of the RP-Sanjiv Goenka Group, is a major player in Business Process Management (BPM). It offers tailored services in sectors like Banking, Healthcare, Communications, Media, and Technology. With a portfolio of over 150 global clients, Firstsource serves 18 Fortune 500 and 3 FTSE 100 companies.
In FY23, the company generated 66% of its revenue from the US and 33% from the UK. For FY2024, it recorded a net profit of Rs.515 crore, with an asset base of Rs.60,800 crore and revenue of Rs.6,340 crore, reflecting 5.2% growth. The operating margin stood at 11%, and its dividend yield reached 1.21%. In the quarter ending June 2024, net sales rose to Rs.1,791.10 crore, up by 17.13% compared to the June 2023 quarter. (Source: Annual Report)
Indian Bank Limited:
Indian Bank, established in 1907, is the seventh-largest public sector bank in terms of deposits and advances. It offers various services, including deposits, loans, and various banking operations across segments like Treasury, Corporate Banking, and Retail Banking. With 5,847 branches, 4,937 ATMs, and 11,297 Business Correspondents nationwide, Indian Bank ensures accessible and efficient service.
In FY2024, Indian Bank reported a net interest income of Rs.23,274 crore (up 15% YoY) and a net profit of Rs.8,063 crore (up 53% YoY). Deposits reached Rs.6,88,000 crore, while gross advances stood at Rs.5,33,773 crore, reflecting an 11% and 13% growth, respectively. The bank’s net NPA was at 0.43%, with a net worth of Rs.47,491 crore and a global business tally of Rs.12,21,773 crore (up 12% YoY). For Q2 FY2024, net NPA dropped to 0.27%, and net profit was Rs.2,707 crore. (Source: Annual Report)
Bandhan Bank Limited:
Bandhan Bank aims to serve underbanked markets throughout India. It began as Bandhan Financial Services Pvt. Ltd. (BFSL) in 2006 and became the largest NBFC-MFI by 2014. In 2015, after receiving a banking license from the RBI, it started operating as Bandhan Bank, taking over BFSL’s microfinance portfolio. Today, in 2024, Bandhan Bank has a strong presence with 3.35 crore customers, offering a variety of banking products for both micro and general banking.
As of FY2024, its total advances reached Rs.1,24,721 crore, and total deposits were Rs.1,35,202 crore, with CASA deposits at Rs.50,151 crore and a CASA ratio of 37.09%. The bank’s net worth stands at Rs.20,366 crore, with a profit after tax of Rs.2,230 crore, a capital adequacy ratio of 18.28%, a net interest margin of 7.35%, and a net NPA of 1.11%. It operates through 4,597 banking units across the country. (Source: Annual Report)
Archean Chemical Industries Limited:
Archean Chemical Industries Limited stands out as India’s largest bromine and industrial salt exporter for Fiscal 2021. The company leads specialty marine chemical manufacturing, focusing on producing and exporting bromine, industrial salt, and sulphate of potash globally. It is also the first integrated plant in India to manufacture these products. In the past year, Archean established two new subsidiaries: Idealis Chemicals Private Limited and Neun Infra Private Limited.
For the financial year 2023-24, the consolidated profit after tax reached Rs.31,897.07 lakhs, with a consolidated net worth of Rs.1,70,155.05 lakhs as of March 31, 2024. The revenue for FY2024 was Rs.1,329.58 crore, reflecting a remarkable return on capital employed (ROCE) of 24%. Importantly, Archean operates as a debt-free company. (Source: Annual Report)
Top 10 volume gainers from 28th October NIFTY 500
Based on the trade volume of 28th October 2024 vs the past one week’s average:
Sno
Symbol
Volume
Volume Change %
1
ACI
6447547
2700.35 %
2
SYRMA
12240431
2266.1 %
3
INDIGO
9138921
1142.88 %
4
INDIANB
8107445
782.44 %
5
RAINBOW
483779
724.24 %
6
POONAWALLA
20132899
602.3 %
7
ARE&M
2940610
493.36 %
8
IDFCFIRSTB
195248873
468.27 %
9
CHOLAFIN
5699062
391.61 %
10
JBMA
582445
376.11 %
(source: NSE on 28th October 2024)
Disclaimer Note: The securities quoted, if any, are for illustration only and are not recommendatory. Past performance is not indicative of future results.
Understanding the stocks of the list:
Interglobe Aviation Ltd.:
Interglobe Aviation Ltd, known as IndiGo, is India’s largest passenger airline and operates as a low-cost carrier. It serves 86 destinations, including 24 international ones, focusing on low fares, on-time flights, and friendly service. Launched in August 2006 with just one aircraft, IndiGo’s fleet has expanded to 262 planes. As of FY24, IndiGo holds about 62% of the Indian aviation market, a steady increase since 2007, and approximately 18% in the international segment.
It ranks as the 7th largest airline globally based on daily departures and is the first Indian airline with a fleet of over 360 aircraft. In FY2024, IndiGo reported revenues of Rs.68,904.3 crore, a 26.6% increase, and a profit after tax of Rs.8,172.5 crore. The airline operates 2,016 daily flights, covering 121 destinations and serving 10.7 crore customers, marking a 25% increase. (Source: Annual Report)
Rainbow Children’s Medicare Limited:
Rainbow Children’s Medicare Limited, founded in 1998, is India’s leading pediatric multi-specialty hospital chain. It provides essential services like newborn and pediatric intensive care, as well as obstetrics and gynecology. With 19 hospitals across six cities and 1,935 beds, it is the largest pediatric hospital network in the country. Its hospitals in Hyderabad and Bengaluru, along with BirthRight Fertility in Kondapur, were the first in India to earn JCI accreditation.
By FY2024, the company reported a revenue of Rs.1,296.9 crore and a profit after tax (PAT) of Rs.218.3 crore. However, the return on capital employed (ROCE) fell to 21% from 24.61% due to expansion from new hospitals. Rainbow has also expanded its services, introducing IVF at 11 hospitals and launching three new spoke hospitals in Hyderabad, Bengaluru, and Chennai. (Source: Annual Report)
Poonawalla Fincorp Limited:
Poonawalla Fincorp Limited, formerly Magma Fincorp Limited, is a non-deposit-taking NBFC registered with the RBI. It focuses on financing for consumers and MSMEs and provides general insurance services. In FY22, it partnered with various digital aggregator platforms to boost growth. The business serves retail customers, with an average ticket size of around Rs.3.5 lakhs as of March 2022. Poonawalla Fincorp aims to grow this segment by 15-20% by FY25 while enhancing its digital services.
The company has shown strong growth in assets under management (AUM), reaching Rs.26,972 crore, a 52% increase year-over-year. Its net interest income rose to Rs.676 crore, reflecting a 42% increase, while profit after tax (PAT) reached Rs.292 crore, up 46% year-over-year. With a low net NPA of 0.32% and a return on assets (ROA) of 4.62%, Poonawalla Fincorp demonstrates solid financial health. (Source: Annual Report)
Amara Raja Batteries Limited:
Amara Raja Batteries Limited (ARBL) is a leader in the Indian storage battery industry. It specializes in manufacturing lead-acid batteries for industrial and automotive use. As the flagship company of the Amara Raja Group, ARBL serves prestigious OEMs and exports its products to over 50 countries. In India, it is the go-to supplier for major telecom service providers, telecom equipment manufacturers, and sectors like UPS, Indian Railways, Power, and Oil & Gas.
The company plans to invest Rs.400 crore in Phase I of a lead recycling facility at ARCSPL and up to Rs.1,500 crore through ARACT over the next 2-2.5 years. With a routine annual capex of Rs.300-350 crore, this plant will meet 30% of its lead requirements. ARBL boasts a ROCE of 19%, a 10-year revenue CAGR of 13%, and a CRISIL credit rating of AA+. (Source: Annual Report)
IDFC First Bank:
IDFC First Bank offers a wide range of banking services across India. It was formed by merging IDFC Bank and Capital First on December 18, 2018. As the first bank to provide monthly credit on savings accounts, it has grown significantly, with a total business exceeding Rs. 4 lakh crore. The bank provides over 25 products, including retail banking, SME services, corporate banking, and wealth management. With 944 branches and 1,164 ATMs nationwide, it reported a CAGR of 37% in customer deposits as of FY2024.
The bank issued loans and advances worth Rs.2,00,965 crore, growing by 25.14%. Its net NPA is 0.60%, and total deposits reached Rs.2,00,576 crore, marking a 38.68% increase. The CASA ratio stands at 47.25%, and the capital adequacy ratio is 16.11%. The bank’s net worth is Rs.32,161 crore, with a PAT of Rs.2,957 crore, reflecting a 21.31% increase. (Source: Annual Report)
Indian indices opened positively on Monday despite mixed global cues, gaining momentum through the day. However, profit booking at higher levels trimmed some of these intraday gains. So, even with visible recovery signs, it’s wise to weigh each investment decision carefully, considering all market factors.
The market slide continues for the fifth consecutive day. The drop triggered by sustained selling pressure from the FIIs dragged NIFTY below the support to touch the 24100 intraday level. By the end of the trading session, the NIFTY closed at 24,180.80, and the SENSEX closed at 79,402.29. Amidst the declining market, a few stocks stayed resilient and made it to Friday’s list of top performers.
As the market opens at 9:00 AM today, we present 20 stocks to consider adding to your watchlist. Here are ten stocks with the highest trading volume and ten stocks based on their performance at yesterday’s market close.
Top 10 performers 25th October from NIFTY 500
Top 10 performers from NIFTY 500 based on the closing figures of 25th October 2024:
*Disclaimer Note: The securities quoted, if any, are for illustration only and are not recommendatory. Past performance is not indicative of future results.
Understanding the Top 5 stocks on the list
Thermax Limited:
Thermax Limited offers a range of solutions across energy, environment, and chemical sectors. Its product lineup includes boilers, heaters, chillers, power plants, solar equipment, air pollution control systems, and waste recycling plants. Thermax is recognized worldwide for its vapor absorption cooling and heating systems, with chillers widely used for industrial refrigeration and air conditioning. It also has expertise in setting up power, cogeneration, and trigeneration plants, with installations exceeding 3,500 MW.
Operating in over 30 countries, Thermax works with 147 channel partners, fulfilling 10,282 orders. In FY2024, Thermax reported revenue of Rs.9,323 crore, marking a 13% growth, alongside an order book worth Rs.9,355 crore. It declared a dividend of Rs.12 per share, with international revenue reaching Rs.2,048 crore and PAT at Rs.643 crore, up by 32%. The government has also invested Rs.26.2 crore in Thermax’s R&D projects. (Source: Annual Report)
Jammu and Kashmir Bank Limited:
Jammu and Kashmir Bank Ltd (J&K Bank), established in 1938, is headquartered in Srinagar. It was the first J&K company listed on BSE and NSE and remains a key banking player in the Union Territories of J&K and Ladakh. J&K Bank provides various banking services like deposits, credit, forex, remittances, and digital banking, catering to households, businesses, government bodies, and corporates. With 1,001 branches across 22 states and UTs—832 in J&K, 37 in Ladakh, and 132 elsewhere—J&K Bank has a broad reach.
The Government of J&K is the majority stakeholder, though the bank operates autonomously. J&K Bank also owns JKB Financial Services Limited and sponsors J&K Grameen Bank. It became the first Scheduled Commercial Bank to achieve PCIDSS Version 4 Certification. As of June 2024, J&K Bank reported a net interest income of Rs.1369.23 crore and a net profit of Rs.415.49 crore, with deposits and gross advances rising by 9% and 12%, respectively. (Source: Annual Report)
Laurus Labs Limited:
Founded in 2005, Laurus Labs is a research-driven pharmaceutical and biotech company. It leads globally in select Active Pharmaceutical Ingredients (APIs) for anti-retroviral, oncology, cardiovascular, and gastro therapeutics. Laurus also provides CMO and CDMO services, from clinical-phase development to commercial manufacturing, and supports global innovators. Laurus Labs has a strong reputation in high-growth therapeutic areas with 6,500+ employees, including over 1,050 scientists across 11+ global agency-approved facilities.
For H1 FY2025, Laurus reported revenues of Rs.2,419 crore, marking 1% growth, with EBITDA at Rs.353 crore, reflecting a 14.6% margin due to lower asset utilization and growth project costs. Nearly 80% of CAPEX (Rs.2,800 crore) supports a large, diverse project portfolio. R&D expenditure was Rs.131 crore (5.4% of revenues), while net profits reached Rs.33 crore, down 47% year-over-year. Higher CAPEX and negative operating leverage impacted ROCE at 5.6% for H1 FY2025. (Source: Annual Report)
Max Healthcare Limited:
Max Healthcare, India’s second-largest hospital chain by revenue, EBITDA, and market cap, operates 20 facilities with over 4,300 beds in NCR Delhi, Haryana, Punjab, Uttarakhand, and Maharashtra. It offers services through primary care clinics and multi- and super-specialty hospitals, with about 85% of beds in Metro and Tier 1 cities. In FY2024, Max Healthcare’s revenue grew by 15.7% to Rs.7,215 crore, while PAT rose 17.8% to Rs.1,058 crore. Its net worth reached Rs.8,408 crore, with a low net debt of Rs.131 crore, yielding a debt-equity ratio of 0.15. The hospital also published over 400 research papers in FY2023-24. (Source: Annual Report)
Sundaram Finance Limited:
Sundaram Finance, a deposit-taking NBFC founded in 1954, offers vehicle and home finance, mutual funds, and insurance services. Its FY2024 capital adequacy ratio (CRAR) stood at 20.5%, well above the 15% requirement. Return on net worth improved to 17.5%, up from 14.9% last year.
Disbursements grew by 25% to Rs.26,163 crore, with gross receivables rising 28.6% to Rs.51,385 crore. Net profit reached Rs.1,454 crore, marking a 33.64% increase, while revenue from operations totaled Rs.5,479.94 crore. The company maintained “AAA” ratings with a “Stable Outlook” from CRISIL and ICRA. (Source: Annual Report)
Top 10 volume gainers from NIFTY 500 based on the trade volume of 25th October 2024 vs the past week’s average:
*Disclaimer Note: The securities quoted, if any, are for illustration only and are not recommendatory. Past performance is not indicative of future results.
Understanding the Top 5 stocks on the list:
Chalet Hotels Ltd.:
Chalet Hotels operates in hospitality, commercial, retail, and real estate development, with properties like Novotel Pune Nagar Road, JW Marriott Mumbai Sahar, and The Westin Hyderabad Mindspace. In FY2024, it added Courtyard by Marriott Aravali Resort and The Westin Hyderabad HITEC City.
Chalet ranked in the top 10 globally among hotels, resorts, and cruise lines in 2023-24. Over the last five years, it achieved a 135% CAGR in profit growth. In FY2024, Chalet’s revenue reached Rs.1,437 crore, marking a 22% growth, with an ROCE of 12.1% and PAT margin of 19.4%. The company’s net worth stood at Rs.1,851.3 crore, supported by assets with a book value of Rs.3,214.5 crore. (Source: Annual Report)
Home First Finance Company India Limited:
Home First Finance Company provides housing loans to first-time homebuyers in low- and middle-income groups. Its primary lending—87% of its portfolio—is for buying or constructing homes. Operating through 133 branches across 13 states, it has a strong presence in Gujarat, Maharashtra, Karnataka, and Tamil Nadu.
The company went public on January 21, 2024, raising Rs.1153 crore with a 19% listing gain. As of FY2024, it manages Rs.9698 crore in assets. For the June 2024 quarter, revenue hit Rs.336.41 crore, up from Rs.255.04 crore the previous year. Over three years, revenue grew by 33.2%, and as of 25th October 2024, its stock has risen 23.65% in the past year. (Source: Annual Report)
IndusInd Bank Limited:
IndusInd Bank, established in 1994 as India’s first private sector bank under the Banking Regulation Act, began in Mumbai under the leadership of Srichand P Hinduja of the Hinduja Group. Initially focused on serving the NRI community, it has since expanded to offer various financial products and services to corporate and retail clients across India, including at International Financial Service Centres.
In 2022, the bank became the first in India to partner with NPCI for cross-border NRI remittances via UPI. With a diversified loan book, IndusInd Bank has 54% of its loans in consumer banking and 46% in corporate banking. Key areas such as vehicle financing, micro-financing, and diamond manufacturer financing make up 43% of its portfolio, all of which have performed strongly during recent challenges.
As of the quarter ending September 2024, the bank’s key stats are as follows: Loans stand at Rs.3,57,159 crore, deposits at Rs.4,12,397 crore, and CASA at Rs.1,47,944 crore, representing 36%. The net profit is Rs.1,331 crore, down 40% YoY. (Source: Annual Report)
Dixon Technologies Limited:
Dixon Technologies has led India’s electronic manufacturing services (EMS) since 1993. From producing color TVs in 1994, it has expanded to consumer durables, home appliances, lighting, mobile phones, and security devices. Dixon also offers repair and refurbishment services for products like set-top boxes, mobile phones, and LED TVs.
Dixon has cemented its industry position by serving top global and domestic brands as an original equipment manufacturer (OEM) and an original design manufacturer (ODM). In FY2024, it partnered with Japan’s Rexxam to manufacture air conditioner circuit boards, adding Rs.362 crores in revenue. Dixon’s total FY2024 revenue reached Rs.17,690.9 crores, with a 45% growth rate, while PAT grew by 47% to Rs.3,749 crores. Return on capital employed (ROCE) was 38%. (Source: Annual Report)
Poonawalla Fincorp Limited:
Poonawalla Fincorp Limited, previously known as Magma Fincorp Limited, is a non-deposit-taking NBFC registered with the RBI. It focuses on consumer and MSME financing and General Insurance services. In FY22, it partnered with various digital aggregator platforms to boost growth in this segment. The business, serving retail customers, had an average ticket size of about Rs.3.5 lakhs as of March 2022.
The company aims to increase this segment by 15-20% by FY25 while enhancing its digital services. Poonawalla Fincorp has consistently grown its assets under management (AUM), reaching Rs.26,972 crore, up 52% year-over-year. Net interest income stood at Rs.676 crore, reflecting a 42% increase. The profit after tax (PAT) was Rs.292 crore, marking a 46% year-over-year growth. The net NPA is low at 0.32%, with a return on assets (ROA) of 4.62%. (Source: Annual Report)
The mutual fund’s inflow slightly relaxed mixed global cues and selling pressure, which helped the DIIs absorb the sales. However, the early-hour gains were washed away, and the indices fell further. It is easy to fall into the short-term trap in a market like this. Still, stick to your strategy and adjust after carefully considering only the market and security factors.
20 stocks to add to your watchlist -25th October
Thursday’s drop marks the fourth straight day of losses for the indices. Indian stocks faced challenges in gaining momentum, primarily due to significant declines in FMCG and realty stocks. This pressure led the frontline indices to a flat close. Although banking stocks, especially from the public sector, offered some support, it wasn’t enough to lift the index higher.
Consequently, the NIFTY closed at 24,399, while the SENSEX ended at 80,065. With the background of such drops, some of the stocks still made it to the list of top performers for the day.
As the market opens at 9:00 AM today, we present 20 stocks to consider adding to your watchlist. Here are ten stocks with the highest trading volume and ten stocks based on their performance at yesterday’s market close.
Disclaimer Note: The securities quoted, if any, are for illustration only and are not recommendatory. Past performance is not indicative of future results.
Understanding the Top 5 stocks of the list:
Sona BLW Precision Forgings Ltd.:
Sona BLW Precision Forgings is an automotive technology company based in India. It started as a joint venture with Mitsubishi Metal Corporation, initially named Sona Okegawa Precision Forgings Ltd. In 2016, the partnership ended, and in FY19, the company acquired Comstar, a leader in charging systems, rebranding itself as Sona Comstar. The company focuses on designing, manufacturing, and supplying engineered automotive systems and components, including mechanical and electrical hardware and software solutions. In FY2024, it achieved revenue of Rs.3,184.8 crore, with net profits increasing by 31% to Rs.131 crore. Sona operates 10 manufacturing plants and 4 R&D centers, holding a net order book of Rs.22,600 crore. Additionally, its return on capital employed (ROCE) and return on equity (ROE) are impressive at 31% and 28.5%, respectively. (Source: Annual Report)
Aster DM Healthcare Limited:
Aster DM Healthcare was founded by Dr. Azad Moopen in 1987 as a single clinic in Dubai, UAE. It has grown into a leading private healthcare provider in multiple segments, including hospitals, clinics, pharmacies, and diagnostic labs, serving patients from various economic backgrounds in the GCC and India. As of April 3, 2024, the listed entity focuses solely on its India business. Aster emphasizes clinical excellence and has a significant presence in healthcare. It operates 19 hospitals with 4,994 beds, 13 clinics, 212 pharmacies under the Alfaone brand, and 232 labs and patient experience centers across five Indian states. Recently, in H1 FY2025, Aster was recognized as the Best Healthcare Brand of the Year by The Economic Times for H1 ending September 2024. It reported a revenue of Rs.2,088 crore, an 18% growth, and a PAT of Rs.171 crore, an impressive 88% increase. The overall operating EBITDA margin stood at 19.6% for H1 FY25, with 69% occupancy across its facilities. (Source: Annual Report)
Adani Total Gas Limited:
AGL operates in the City Gas Distribution (CGD) sector, supplying natural gas to homes, businesses, industries, and vehicles. Promoted by the Adani Group and Total Energy, both hold a 37.4% stake in the company. AGL focuses on developing CGD networks and offering piped natural gas (PNG) and compressed natural gas (CNG). The company has also ventured into e-mobility and biomass through its subsidiaries and has a 50:50 joint venture for gas meter manufacturing. As of June 2024, AGL boasts an installed capacity of 14.7 MW and is constructing over 740 charge points. For June 2024, AGL reported net sales of Rs 1,145.49 crore, marking an 8.47% increase from the previous year. Its quarterly net profit reached Rs 171.84 crore, reflecting a 14.39% rise compared to June 2023. (Source: Annual Report)
Adani Wilmar Ltd.:
Incorporated in 1999, Adani Wilmar Ltd specializes in edible oils, food, and other FMCG products. It’s a joint venture between Adani and Singapore’s Wilmar Group, a prominent agribusiness. The company offers a wide range of packed products under brands like Fortune, King’s, Raag, Bullet, and more. Adani Wilmar also operates in essential segments, including castor derivatives, oleo derivatives, and de-oiled cake. Its overseas subsidiary in Bangladesh focuses on trading and refining crude edible oil. With 23 manufacturing units and 38 leased units, the company is a market leader in edible oils and excels in castor exports and oleochemicals. It ranks as the second largest for soya nuggets and wheat flour. As of FY2024, Adani Wilmar reported a total turnover of Rs.51,262 crore, a sales volume of 60 lakh MT, PAT of Rs.148 crore, EBITDA of Rs.2,235 crore, and a ROCE of 5%. Remarkably, it operates debt-free. (Source: Annual Report)
Syngene Limited:
Syngene, established in 1993 as a subsidiary of Biocon, is India’s first Contract Research Organization (CRO). It has grown into an integrated service provider, offering complete drug discovery, development, and manufacturing services on one platform. The company’s research and manufacturing facilities span 1.9 million square feet across multiple locations. Syngene serves various industries, including pharmaceuticals, animal health, agrochemicals, consumer packaged goods, and chemicals. It has over 400 active clients, including 13 of the top 15 global pharma companies. The company holds over 400 patents jointly with its clients and employs over 6,000 scientists. In FY2024, Syngene’s revenue from operations increased by 9% to Rs.3,489 crore, while profit after tax rose by 12% to Rs.519 crore. However, for the quarter ending September 2024, revenue declined by 2% year-on-year to Rs.891 crore, and profit after tax fell by 13% to Rs.182 crore. (Source: Annual Report)
Top 10 performers 24th October from NIFTY 500
Based on the trade volume of 24th October 2024 vs the past week’s average:
Sno
Symbol
Volume
Volume Change %
1
ASTERDM
22407300
3019.28 %
2
KPITTECH
10867415
1390.88 %
3
SONACOMS
27594618
1254.41 %
4
ESCORTS
1595628
888.15 %
5
IIFL
11982378
882.32 %
6
HINDUNILVR
9216245
681.46 %
7
AWL
7968001
669.74 %
8
LALPATHLAB
1232966
597.62 %
9
ATGL
3161478
593.01 %
10
SYNGENE
3245205
567.68 %
(source: NSE on 24th October 2024)
Disclaimer Note: The securities quoted, if any, are for illustration only and are not recommendatory. Past performance is not indicative of future results.
Understanding the stocks of the list:
KPIT Technologies Ltd.:
KPIT is a global technology company focused on software solutions for an autonomous, clean, smart, and connected future. With over 13,000 Automobelievers worldwide, it specializes in embedded software, AI, and digital solutions, helping customers speed up the adoption of next-generation mobility technologies.
The company has development centers in Europe, the USA, Japan, China, Thailand, and India, positioning itself as a key partner in the automotive and mobility ecosystem for creating software-defined vehicles. In Q1 FY25, KPIT achieved impressive results, with a 24.8% year-over-year revenue growth and a 52.4% increase in profit after tax (PAT). For the quarter ending June 2024, it reported revenues of Rs.1,317.8 crore and a PAT of Rs.165.92 crore, marking its 16th consecutive growth quarter. (Source: Annual Report)
Escorts Ltd.:
Escorts Ltd. is a top engineering conglomerate in India, specializing in Agri-machinery, Construction Equipment, and Railway Equipment. In FY24, the company generated 70% of its revenue from Agri Machinery, down from 76% in FY23. Construction Equipment accounted for 19%, up from 14%, while Railway Equipment contributed 11%, slightly increasing from 10% in the previous year.
As of FY24, Escorts holds an 11.6% share of the domestic tractor market, up from 10% in FY23, and a 5.1% share in the export tractor market. It commands around 39% of the construction equipment market for cranes and has a presence in compactors and BHL as well. The company operates eight plants in India and one in Poland, with an annual production capacity of 2,500 units. As of FY24, Escorts has an order book worth Rs.950 crore in Railway Equipment. The company is almost debt-free and reported revenues of Rs.8,850 crore, with a net profit of Rs.1,049 crore and a dividend payout of 19%. (Source: Screener)
IIFL Finance Ltd.:
IIFL Finance Ltd is a leading NBFC in India, providing loans for homes, gold, businesses, and microfinance. It has a strong national presence with over 6,000 partners and 100+ branches. Its institutional broking covers 273 stocks across 20+ sectors, representing 75% of India’s market capitalization. As of FY2024, IIFL’s total assets under management (AUM) reached Rs.188,300 crore, with mutual fund AUM at Rs.10,800 crore. The company achieved a 33% return on equity and a remarkable 71% increase in average daily turnover. Demat accounts also grew by 11.9%, reaching 15.14 crore. In FY2024, total revenue hit Rs.2,231.3 crore, a 63% increase from FY2023, with a net profit of Rs.512.1 crore, up 106%. IIFL’s net worth stood at Rs.1,783 crore, and it announced a dividend payout of Rs.3.0 per share. (Source: Annual Report)
Hindustan Unilever Limited:
Hindustan Unilever operates in the FMCG sector, focusing on Home Care, Beauty and Personal Care, and Food and refreshments. With manufacturing facilities spread across India, the company primarily sells its products within the country. Its brands are found in over 8 million stores, and nearly 90% of Indian households use at least one of its products. The company leads the market in about 90% of its categories. As of FY2024, it reported a turnover of Rs.59,579 crore and a profit after tax of Rs.10,114 crore, with a dividend per share of Rs.42. The net worth stands at Rs.50,973 crore. The underlying sales growth was 3%, and the underlying volume growth reached 2%. Hindustan Unilever also maintained a healthy EBITDA margin of 23.8%. (Source: Annual Report)
Dr. Lal PathLabs Limited:
Dr. Lal PathLabs Limited is a top consumer healthcare brand in India, renowned for its diagnostic services. It operates a vast network across the country, offering a wide range of tests for diagnosis, disease prevention, monitoring, and treatment. Serving individual patients, hospitals, healthcare providers, and corporates, the company boasts over 70 years of experience and is the largest diagnostics chain in India. In the last five years, it has helped more than 12.2 crore patients. In the March 2024 quarter, Dr. Lal PathLabs reported a 12% revenue CAGR over three years, reaching Rs.545 crore, which is an 11.1% growth. The profit after tax (PAT) was Rs.86 crore, marking a remarkable 50.8% increase, with a PAT margin of 15.7%. Additionally, the equity dividend for FY23-24 stands at 240%. (Source: Annual Report)
FII selling is increasing due to reports of a slowdown in corporate earnings, which has led to continuous declines in the indices. In these circumstances, it is suggested that investors stay cautious and avoid chasing temporary rallies. While it’s a good idea to accumulate quality stocks during dips, it’s essential to do so with careful planning and analysis.
Top 10 performers on 23rd October from NIFTY 500
Based on the closing figures of 23rd October 2024:
Disclaimer Note: The securities quoted, if any, are for illustration only and are not recommendatory. Past performance is not indicative of future results.
Understanding the Top 5 stocks of the list:
Deepak Fertilisers and Petrochemicals Corporation Limited:
Deepak Fertilisers and Petrochemicals Corporation Ltd, founded in 1979, operates in fertilizers, agri services, bulk chemicals, mining chemicals, and real estate. It is the only producer of Prilled and Medical-grade Ammonium Nitrate in India and a leading manufacturer and marketer of IPA. The company also uniquely manufactures NP prill 24:24:0 fertilizer and is a market leader in Bentonite Sulphur and specialty fertilizers. With manufacturing facilities in Maharashtra, Andhra Pradesh, Haryana, and Gujarat, Deepak Fertilisers reported revenue of Rs.2,281 crores in Q1 FY2025, reflecting a slight 1.4% decline due to lower commodity prices. However, its EBITDA margin in the same quarter improved significantly to 20.4%, up from 12.1% YoY. Net profit grew by 75.7% to Rs.200 crore, resulting in a net profit margin of 8.8%. The NCLT also approved the demerger of the TAN business in July 2024. (Source: Annual Report)
Coforge Limited:
Coforge is an IT services company offering comprehensive software solutions. It ranks among the top 20 Indian software exporters and provides services in areas like product engineering, digital solutions, data analytics, AI/ML, cloud computing, business process re-engineering, and Low Code/ No Code platforms. Coforge serves over 260 global clients, including British Airways, ING Group, SEI Investments, Sabre, and SITA. To enhance its project mobilization, the company has established subsidiaries in the US, Singapore, Australia, the UK, Germany, and Thailand. It also partners with major IT firms worldwide. In FY2024, Coforge acquired a 70% stake in NIIT Technologies Ltd. and partnered with Salesforce to launch Coforge ENZO, an environmental solution for decarbonization challenges. The company boasts a repeat business rate of 92%, consistent revenue growth of 16% CAGR over six years, and reported revenue of Rs.9,179 crore in FY2024. It achieved a profit after tax of Rs.808 crore, a growth of 16.5%, with a PAT margin of 8.8%. The executable order book reached Rs.10,088.82 crore (US$1.02 billion). (Source: Annual Report)
Amber Enterprises India Ltd.:
Amber Enterprises India Ltd, established in 1956, dominates India’s Room Air Conditioner (RAC) market with a 23.6% share and leads as a top OEM/ODM with 29%. The company offers a range of products, including RACs, heat exchangers, and fans. Recently, it expanded into washing machines through a partnership with Resojet Private Limited and acquired Ascent Circuits for PCB production. In June 2024, Amber saw a 41% revenue increase, driven by strong summer RAC demand. The company also raised its stakes in ILJIN and Ever to 90.2%. For FY2024, Amber reported revenues of Rs.6,729 crore and profits of Rs.139 crore. Its Return on Capital Employed (ROCE) was 12.61%, and Profit After Tax (PAT) was Rs.75 crore, reflecting a margin of 3.1%. (Source: Annual Report)
Persistent Systems Ltd.:
Persistent Systems offers software engineering and strategy services to help businesses modernize and implement new solutions. It develops its own software and frameworks with pre-built integrations and partners with major providers like Salesforce and AWS. The company delivers comprehensive Digital Engineering solutions in areas such as Product & Platform Engineering, CX & Design-Led Transformation, Cloud-enabled Enterprise Modernization, Data & Artificial Intelligence, and Intelligent Automation. For the second consecutive year, it was recognized as a Challenger in the 2024 Gartner Magic Quadrant™ for Public Cloud IT Transformation Services. In FY2024, Persistent Systems reported a profit after tax of ₹1,093.49 crore, an 18.7% increase year-on-year, with a revenue CAGR of 24.0% between FY20 and FY24. Total FY24 revenue reached ₹9,921.59 crore, reflecting a 14.5% year-on-year growth. The persistent dividend yield over the past five years stands at 23.2%. (Source: Annual Report)
Titagarh Rail Systems Limited:
Titagarh Rail Systems Ltd, formerly known as Titagarh Wagons Limited, was established in 1997. It specializes in manufacturing and selling freight wagons, passenger coaches, metro trains, train electricals, steel castings, specialized equipment, bridges, and ships. The company serves both domestic and export markets. Notably, it is the only Indian firm that produces both wagons and coaches, holding a market share of 25-30% in the wagon industry. In July 2024, Titagarh Rail began exporting, shipping its first batch of eight converters to Titagarh Firema S.p.A in Italy for Rs. 65 crore. Additionally, in November 2023, it partnered with ABB to supply propulsion systems for metro projects in India. As of Q1 FY25, its consolidated order book stood at Rs. 14,117 crore, down from Rs. 15,123 crore in FY22. For the June 2024 quarter, the company reported revenue of Rs. 903.1 crore, a profit after tax of Rs. 71.3 crore, and a PAT margin of 7.9%. (Source: Annual Report)
Top 10 performers 23rd October from NIFTY 500
Based on the trade volume of 23rd October 2024 vs the past one week’s average:
Sno
Symbol
Volume
Volume Change %
1
GMDCLTD
18661150
1567.77 %
2
DEEPAKFERT
5555984
1462.63 %
3
RAJESHEXPO
2889275
748.36 %
4
PERSISTENT
2690817
692.65 %
5
FSL
27757330
642.39 %
6
COFORGE
3624867
610.22 %
7
MFSL
5991810
573.86 %
8
CANFINHOME
2265745
558.9 %
9
M&MFIN
16610279
426.23 %
10
OLECTRA
3002023
335.85 %
(source: NSE on 23rd October 2024)
Disclaimer Note: The securities quoted, if any, are for illustration only and are not recommendatory. Past performance is not indicative of future results.
Understanding the stocks of the list:
Gujarat Mineral Development Corporation Ltd.:
Gujarat Mineral Development Corporation Ltd. (GMDC) stands out in India’s mining and power sectors. It specializes in lithium, bauxite, fluorspar, multi-metals, manganese, and renewable energy sources like wind and solar. GMDC has zero debt and ranks 469th in India’s Fortune 500 (2023), making it one of the top five mining companies by market capitalization. As the second-largest lignite producer in India and the leader in Gujarat, GMDC supplies vital resources to industries such as textiles, chemicals, ceramics, and power. In FY2024, the company reported its third-highest turnover of Rs.2463 crore and a net profit of Rs.614 crore, maintaining a healthy 34.9% dividend payout. (Source: Annual Report)
Rajesh Exports Limited:
Rajesh Exports Ltd, established in 1989, is a leading global player in gold manufacturing and exports. The company operates across the entire gold value chain, handling everything from refining to retail. It processes about 35% of the world’s gold and has the capacity to refine 2,400 tons of precious metals each year. Rajesh Exports has shown consistent profitable growth since its start and has paid 100% dividends for the last decade. Its retail brand, SHUBH Jewellers, is well-recognized in the market. For FY2024, the company reported a net profit of Rs.337.03 crore and a total income of Rs.2,80,676.35 crore. As of the June 2024 quarter, it remains debt-free, with revenue of Rs.47,552.6 crore and a net profit of Rs.271.6 crore. (Source: Annual Report)
Firstsource Solutions Limited:
Firstsource Solutions Limited is a leading player in Business Process Management (BPM) and part of the RP-Sanjiv Goenka Group. The company provides customized services across various sectors, including Banking, Healthcare, Communications, Media, and Technology. With over 150 global clients, it serves 18 Fortune 500 and 3 FTSE 100 companies. In FY23, 66% of its revenue came from the US, while the UK contributed 33%. For FY2024, the company reported a dividend yield of 1.21% and a net profit of Rs.515 crore. It has an asset base of Rs.60,800 crore and revenue of Rs.6,340 crore, reflecting a 5.2% year-on-year increase. The operating margin stood at 11.0%, with a net profit of Rs.510 crore. In the quarter ending June 2024, net sales reached Rs.1,791.10 crore, marking a 17.13% increase compared to the same quarter in 2023. (Source: Annual Report)
Max Financial Services Limited:
Max Financial Services Limited, part of the Max Group, was founded on February 24, 1988. It is the holding company for Max Life Insurance and also generates income from investments. The company focuses on managing business investments and providing advisory services to its group companies. It holds an 81.83% stake in Max Life Insurance, India’s largest non-bank life insurer and the fourth-largest private insurer. In FY24, MFSL reported consolidated revenues of Rs.46,618 crore, a 48% rise due to higher investment income. Excluding investment income, revenues grew 16%, with a profit after tax of Rs.393 crore. (Source: Annual Report)
Can Fin Homes Limited:
Can Fin Homes Ltd. is a deposit-taking housing finance company registered with the National Housing Bank (NHB), with Canara Bank owning a 29.99% stake. It offers smaller housing loans to salaried, professional, and self-employed non-professional borrowers. Headquartered in Bengaluru, it has a pan-India presence with 186 branches, 21 Affordable Housing Loan Centres, and 12 satellite offices. The company’s credit rating has been upgraded to AAA (ICRA & CARE). Key ratios for FY24 include a NIM of 3.73%, a cost of borrowing at 7.4%, and a cost-to-income ratio of 16.74%. Gross NPA stands at 0.82%, with a capital adequacy ratio of 24.61%. The company posted a net profit of Rs.749.83 crore and offers a dividend yield of 0.79%. (Source: Annual Report)
Amidst the mixed global cues, the indices opened on a negative note but didn’t break the support at 24400. The intraday market texture looked weak, which is why it is suggested that investors refrain from making any immediate changes in their portfolios without going through all the market parameters and company statistics.
Top 10 stock performers 22nd October from NIFTY 500
Based on the closing figures of 22nd October 2024:
Disclaimer Note: The securities quoted, if any, are for illustration only and are not recommendatory. Past performance is not indicative of future results.
Understanding the Top 5 stocks of the list:
City Union Bank Limited:
City Union Bank Limited, originally named The Kumbakonam Bank Limited, was established in 1904. Headquartered in Kumbakonam, Tamil Nadu, it offers a variety of banking services. The bank operates across Treasury, Corporate and Wholesale Banking, Retail Banking, and Other Banking Operations. As of FY2024, CUB has 800 branches and 1,677 ATMs. It maintains a Tier I CRAR of 22.69% and a total CRAR of 23.73%. For FY24, the revenue breakdown is: Retail Banking (59%), Treasury (20%), and Corporate/Wholesale Banking (20%). Key figures include deposits of Rs. 55,657 crore, gross advances of Rs. 46,481 crore, and total business of Rs. 1,02,138 crore. The bank manages Rs. 70,826 crore in assets and has a net worth of Rs. 8,374 crore. CASA deposits stand at Rs.17,050 crore, with a net interest income of Rs. 2,123 crore and a net profit of Rs.1,016 crore. (Source: Annual Report)
Poly Medicure Limited:
Poly Medicure Limited is an Indian company known for manufacturing and exporting medical devices. It specializes in plastic medical disposables and surgical devices, offering over 130 products. These include devices for infusion therapy, oncology, anesthesia, respiratory care, urology, gastroenterology, blood management, surgery, dialysis, wound drainage, and veterinary care. By FY2024, the company expanded its operations to more than 125 countries and secured over 325 patents. It reported a revenue of Rs.1,375.79 crore and a profit after tax of Rs.258.25 crore, a rise from Rs.179.28 crore in FY2023. Poly Medicure’s net worth is Rs.1,470.05 crore. (Source: Annual Report)
Varun Beverages Limited:
Varun Beverages Ltd, a key player in the beverage industry, has been associated with PepsiCo since the 1990s. It is one of PepsiCo’s largest franchisees globally, producing and distributing a variety of soft drinks, non-carbonated beverages, and packaged water under PepsiCo’s trademarks. Major brands include Pepsi, 7UP, Mirinda, Mountain Dew, and Tropicana Juices. The company follows the calendar year for its financial records. In 2023, operations spanned 10 countries, with 83% of revenues coming from India, Sri Lanka, and Nepal and 17% from Morocco, Zambia, and Zimbabwe. The company ensures high operational efficiency through backward integration for producing packaging materials. Varun Beverages also owns a 55% stake in Lunarmech Technologies and has agreed to acquire 100% of South Africa’s BevCo. For CY2023, Varun Beverages reported a 13.9% year-on-year sales volume growth, with a PAT growth of 35.6% to Rs.2101.8 crore and a net revenue of Rs.16042.6 crore. Its net worth stands at Rs.7084.7 crore. (Source: Annual Report)
Hindustan Zinc Ltd.:
Hindustan Zinc, established in 1966, is the world’s second-largest zinc producer and ranks fifth in global silver production, with 714 tonnes annually. It controls 75% of India’s zinc market and is headquartered in Udaipur, Rajasthan. A subsidiary of Vedanta Limited, Hindustan Zinc operates multiple zinc-lead mines and smelters in Rajasthan, along with a silver refinery. The company also manages thermal, solar, and wind power plants. In FY2024, it posted a revenue of Rs.28,082 crore and a PAT of Rs.7759 crore, with a 151% dividend payout. For the September 2024 quarter, it reported a revenue of Rs.8252 crore, up 22% y-o-y, driven by higher metal volumes and prices. Hindustan Zinc also recorded its highest EBITDA in six quarters at Rs.4164 crore and a PAT of Rs.2389 crore. Recently, it signed an MoU with the Jawaharlal Nehru Centre for Advanced Scientific Research (JNCASR), supported by the Government of India’s Department of Science & Technology. (Source: Annual Report)
Tube Investments of India Limited:
Tube Investments of India Limited (TII) is a leading manufacturer across industries like Automotive, Railway, Construction, Mining, and Agriculture. It is the largest manufacturer of cold-drawn welded steel tubes in India and the market leader in transmission chains while also being the second-largest producer of cycle transmission chains. TII operates through three main verticals: Engineering, Metal Formed Products, and Bicycles. In line with its growth strategy, the company has expanded into TMT bars and truck body building and is exploring optic lenses and vision systems for the auto industry. In May 2023, it ventured into Contract Development and Manufacturing Operations and the active pharmaceutical ingredients business. TII operates 35+ manufacturing locations. As of the June 2024 quarter, its revenue stood at Rs.2228 crore, with a PAT of Rs.241 crore. (Source: Annual Report)
Top 10 stock performers 22nd October from NIFTY 500
Based on the trade volume of 22nd October 2024 vs the past one week’s average:
Sno
Symbol
Volume
Volume Change %
1
CUB
91266807
4280.85 %
2
JYOTHYLAB
8314518
2823.88 %
3
SUPREMEIND
558662
633.81 %
4
PNCINFRA
12390696
481.95 %
5
ROUTE
256821
332.63 %
6
KAJARIACER
354785
295.74 %
7
SHRIRAMFIN
3938250
286.03 %
8
ISEC
675249
265.76 %
9
TIINDIA
655535
248.58 %
10
ANURAS
121650
244.46 %
(source: NSE on 22nd October 2024)
Disclaimer Note: The securities quoted, if any, are for illustration only and are not recommendatory. Past performance is not indicative of future results.
Understanding the stocks of the list:
Jyothy Labs Ltd.:
Jyothy Labs Limited, founded by Mr. M. P. Ramachandran in 1983 in Thrissur, Kerala, is a key player in the Indian FMCG sector. The company’s products span across fabric care, dishwashing, household insecticides, and personal care, with popular brands like Ujala, Maxo, Margo, Exo, Henko, and Pril. For FY2024, Jyothy Labs posted consolidated revenue of Rs.2,757 crore and a PAT of Rs.369 crore. It reaches customers through 0.12 crore direct outlets, 9,900+ channel partners, and 0.28 crore outlets. In the June 2024 quarter, net sales stood at Rs.741.81 crore, a 7.96% increase from the previous year, while net profit rose by 5.65% to Rs.101.73 crore. (Source: Annual Report)
Supreme Industries Limited:
Supreme Industries Limited is India’s leading plastic product manufacturer, offering a wide range of products. It operates in segments like Plastic Piping Systems, Cross Laminated Films, Protective Packaging, Industrial Moulded Components, and Moulded Furniture. The company holds a 30.78% stake in Supreme Petrochem Ltd (SPL). SPL is advancing its expansion plan, with the first line of the MASS ABS Project expected to start by Q4 of FY2024-25. For FY2023-24, Supreme Industries reported net revenue of Rs.10,134.20 crore, with a 26.3% increase in product turnover by volume. The PAT for this period was Rs.1,016.17 crore, and the earnings per share (EPS) were Rs.80.00. (Source: Annual Report)
PNC Infratech Limited:
PNC Infratech Limited began as PNC Construction Company Private Limited on August 9, 1999. It became a limited company in 2001 and was renamed in 2007. Today, it is a key player in infrastructure development and management in India. The company offers engineering, procurement, and construction (EPC) services, either on a turnkey or item-rate basis. It handles projects under various models like DBFOT, OMT, and HAM. By FY2024, PNC Infratech completed 88 major infrastructure projects, earning Rs.8,650 crore (up 9%) and a PAT of Rs.909 crore (up 38%), with a margin of 10.5%. Its net worth stands at Rs.5,185 crore, and it holds an order book of Rs.20,400 crore. The company enjoys strong credit ratings: CARE AA+ for long-term debt and CARE A1+ for short-term debt. (Source: Annual Report)
Route Mobile Limited:
Route Mobile Limited is a leading cloud communications platform service provider specializing in CPaaS (Communications Platform as a Service). It offers services like messaging, voice, email, SMS filtering, analytics, and monetization to clients globally. In May 2024, Route Mobile became part of the Proximus Group, after Proximus Opal acquired a 57.56% stake. For the June 2024 quarter, Route Mobile reported net sales of Rs.1103.42 crore, a 14.07% increase compared to June 2023. However, its net profit for the same period was Rs.78.52 crore, showing a 15.06% decrease from the previous year. (Source: Annual Report)
Kajaria Ceramics Limited:
Kajaria Ceramics Ltd. is a top manufacturer and trader of ceramic and vitrified tiles in India. It ranks as the largest in the country and the eighth largest globally. The product range includes ceramic wall and floor tiles, polished and glazed vitrified tiles, bathware, and plywood. In FY23, tiles accounted for about 88% of the revenue, while other products contributed 12%. For FY2024, Kajaria reported a net profit margin of 9.22%, with a net profit of ₹422 crore and a return on capital employed of 21.90%. Its net worth is ₹2,617 crore, with total revenue reaching ₹4,578 crore. In the June 2024 quarter, net sales were ₹1,113.69 crore, reflecting a 5% increase from the previous year, while net profit stood at ₹89.82 crore. (Source: Annual Report)
The market has fallen into a bear trap, with the benchmark Nifty 50 breaking several key support levels. This suggests that selling pressure may continue for a while. Experts warn that if the index breaks the next support at 24,400, it could drop to around 24,000 or even the August low of about 23,900. While this situation might present a chance to buy fundamentally strong companies at lower prices, it’s crucial to consider every decision carefully. It is suggested you conduct a thorough analysis of market conditions and the companies involved before making any moves.
Top 10 stock performers from 21st October NIFTY 500
Based on the closing figures of 21st October 2024:
Disclaimer Note: The securities quoted, if any, are for illustration only and are not recommendatory. Past performance is not indicative of future results.
Understanding the Top 5 stocks of the list:
Amber Enterprises India Ltd.:
Amber Enterprises India Ltd, founded in 1956, holds 23.6% of India’s Room Air Conditioner (RAC) market and leads as a top OEM/ODM with a 29% share. It offers products like RACs, heat exchangers, and fans. Recently, it ventured into washing machines by partnering with Resojet Private Limited and acquired Ascent Circuits for PCB production. In June 2024, Amber’s revenue jumped 41%, fueled by strong RAC demand during summer. It also increased its stakes in ILJIN and Ever to 90.2%. For FY2024, revenue reached Rs.6,729 crore, while profits stood at Rs.139 crore. The Return on Capital Employed (ROCE) was 12.61%, and Profit After Tax (PAT) came to Rs.75 crore, with a 3.1% margin. (Source: Annual Report)
Tejas Networks Limited:
Tejas Networks Ltd, founded in 2000, designs and manufactures wireline and wireless networking products. The company emphasizes technology, innovation, and R&D. Its products support telecom providers, utilities, governments, and defense networks in over 75 countries. Now part of Panatone Finvest Limited, a Tata Sons subsidiary, Tejas had a strong order book of Rs.8,221 crore by the end of FY2024. In June 2024, net sales reached Rs.1,562.77 crore, a significant 731.75% jump from Rs.188 crore in June 2023. The net profit for Q1 FY2025 stood at Rs.77 crore, down from Rs.147 crore in March 2024, but a notable improvement from the Rs.26 crore loss in June 2023. (Source: Annual Report)
Tata Chemicals Limited:
Incorporated in 1939, Tata Chemicals Ltd (TCL) is part of the Tata Group and produces basic chemistry and specialty products. It is the third-largest global soda ash producer, with over two-thirds of its production being cost-effective natural soda ash. TCL is also the sixth-largest sodium bicarbonate maker worldwide and a key player in agri-services and crop protection in India through Rallis India. As of September 2024, TCL ranked 16th among India’s Top 50 Most Sustainable Companies by Business World and held the top spot in the chemicals sector. The company has filed 219 patents, with 147 granted. For the same quarter, TCL reported revenue of Rs.3999 crore, a 6% increase from June 2024, driven by higher soda ash volumes and prices. However, PAT stood at Rs.267 crore, lower than Rs.393 crore in September 2023 but higher than the previous quarter. (Source: Annual Report)
Indigo Paints Limited:
Indigo Paints began in 2000, focusing on decorative paints. Its range includes exterior and interior emulsions, putties, primers, and wood coatings, all sold under the ‘Indigo’ brand. The company is based in Pune, with plants in Jodhpur, Kochi, and Pudukkottai. In FY24, Indigo Paints expanded into construction and waterproofing by acquiring Apple Chemie India. Following the acquisition, Apple Chemie’s revenue grew by 50% in Q4 FY2024. For FY2024, Indigo Paints reported revenue of Rs.1,320.3 crore, a 21.87% increase from FY2023, and a net profit margin of 11.27%, amounting to Rs.147.32 crore. Additionally, it earned a net profit of Rs.26.65 crore for the quarter ending June 2024. (Source: Annual Report)
CRISIL Ltd.:
CRISIL Ltd is a global analytics firm offering ratings, research, risk, and policy advisory services. It’s India’s top rating agency, with over 35,000 large and medium-scale entities rated. It also provides high-end research for major banks and corporations. CRISIL operates in three segments: ratings (28% of revenue, 51% of profits), research (65% of revenue), and advisory (7% of revenue). Following SEBI regulation changes, it separated its credit ratings business into a subsidiary, CRISIL Ratings Ltd. In H1FY24, CRISIL acquired renewable energy consulting firm Bridge To India Energy Pvt. Ltd. For the year ending December 2023, CRISIL’s income from operations stood at Rs.3140 crore, with an 11% CAGR growth. The profit after tax was Rs.658 crore, and the net worth per share reached Rs.299.4. (Source: Annual Report)
Top 10 stock performers from 21st October NIFTY 500
Based on the trade volume of 21st October 2024 vs the past week’s average:
Sno
Symbol
Volume
Volume Change %
1
TEJASNET
13350379
2004.87 %
2
INDIAMART
5190211
1354.27 %
3
TATACONSUM
11484610
1311.33 %
4
RBLBANK
63857447
808.73 %
5
AMBER
4610465
794.26 %
6
DALBHARAT
1093603
723.98 %
7
BBTC
709318
660.12 %
8
UCOBANK
19914386
603.33 %
9
JINDALSAW
6327071
484.6 %
10
INDIGOPNTS
1106689
411.89 %
(source: NSE on 21st October 2024)
Disclaimer Note: The securities quoted, if any, are for illustration only and are not recommendatory. Past performance is not indicative of future results.
Understanding the stocks of the list:
IndiaMART Ltd.:
IndiaMART, India’s first and largest B2B digital marketplace, is reshaping the B2B landscape. It helps Small and Medium Businesses (SMEs) adapt quickly to the digital era, making the online marketplace accessible and engaging. With nearly 60% market share in the online B2B classifieds space, IndiaMART leads the industry. It boasts ~7.9 million supplier storefronts, ~2.14 lakh paying subscribers, ~108 million live product listings, ~24 million unique business inquiries, and 252 million repeat users. There are ~194 million registered buyers, with a repeat rate of 53%, and CRM handles ~136 million replies and callbacks. For the quarter ending September 2024, 37% of suppliers were also buyers. Revenue from operations reached Rs.348 crore, up 18% year-on-year. The company’s net profit stood at Rs.135 crore, with a 33% margin and 95% growth. Total collections were Rs.356 crore, marking a 6% increase. (Source: Annual Report)
Tata Consumer Products Ltd.:
Tata Consumer Products Ltd., a key company in the Tata Group, is a leader in India’s food and beverages sector and globally. It’s the world’s second-largest tea company, with a solid market presence in South Asia, Canada, the UK, North America, Australia, Europe, the Middle East, and Africa. The company houses several well-known brands. Tata Salt is India’s largest salt brand, while Tata Tea is the second-largest tea brand in the country. Tetley leads in Canada and ranks third in the UK. Himalayan is the top natural mineral water brand in India, Eight O’Clock is the fourth largest coffee brand in the USA, and Tata Sampann is recognized for its pulses, spices, and staples. Among the top 10 FMCG companies in India, Tata Consumer Products saw a slight decline in market share for tea and salt in FY24. Revenue stood at Rs.15,200 crore, with 7% international growth. For Q2FY25, revenue hit Rs.4,214 crore, showing a 13% increase, and net profit was Rs.367 crore with an 8.7% margin. (Source: Annual Report)
RBL Bank Limited:
RBL Bank, founded in 1943, is one of India’s top private-sector banks. It provides specialized services in Corporate Banking, Commercial Banking, Branch & Business Banking, Retail Assets, and Treasury & Financial Markets Operations. The bank has a growing presence across the country, serving over 16.06 million customers through 550 branches, 1,332 business correspondent branches (including 297 banking outlets), and 406 ATMs in 28 states and Union Territories. In the first half of FY25, ending September 2024, RBL Bank’s financials showed positive growth. Net Interest Income rose by 14% year-on-year, reaching Rs.3,315 crore, while other income increased by 25% to Rs.1,733 crore. The bank’s net profit went up by 2%, amounting to Rs.594 crore. Advances saw a 15% rise, totaling Rs.87,882 crore, and overall deposits grew by 20% to Rs.1,07,959 crore. Additionally, the bank’s CASA ratio stood at 33.6%, and the capital adequacy ratio improved to 15.9%. (Source: Annual Report)
Dalmia Bharat Limited:
Dalmia Bharat is a cement manufacturing and selling company that started in 1939. It is the fourth largest cement manufacturer in India by installed capacity. Founded by Late Shri Jaidayal Dalmia, the Dalmia Bharat Group is one of the fastest-growing and most profitable groups in the country. The company has a strong market position in the attractive East, North-East, and South regions of India. In FY2024, Dalmia Bharat achieved a 9% five-year CAGR growth in revenue and a 6% growth in EBITDA. Its net profit saw a 20% five-year CAGR growth. The company reported ₹14,691 crore in revenue from operations, an increase of 8.4%. Its EBITDA reached ₹2,639 crore, growing by 13.4%. Sales volume hit 28.8 million tonnes, up by 11.8%. However, the profit after tax (PAT) was ₹853 crore, a decrease of 20.9%. (Source: Annual Report)
Bombay Burmah Trading Corporation Limited:
Bombay Burmah Trading Corporation Limited (BBTCL) was founded in 1863 and is a flagship company of the Wadia Group. Initially, it focused on the teak business to meet domestic demand. In 1913, BBTCL expanded into tea plantations in South India. Today, it operates in many sectors, including tea, coffee, biscuits, dairy, auto-electric products, white goods, and healthcare products. With over 150 years of history, BBTCL remains a key player in the Wadia Group, one of India’s oldest conglomerates, which has a diverse presence in consumer goods, healthcare, and real estate. For FY2024, BBTCL reported a total revenue of Rs.382.75 crore and a net loss of Rs.588 crore. By June 2024, its total income rose to Rs.4403.30 crore, with a net profit of Rs.471.62 crore. (Source: Annual Report)
The indices failed to hold the gains on Monday and slipped into the red zone. However, with the positive global cues, it is even more difficult to say whether the trend is likely to continue during the week. It is thus suggested to maintain a cautious stance towards the investments and analyze every market aspect thoroughly before closing a deal.
Top 10 stock performers 18th October from NIFTY 500
Based on the closing figures of 18th October 2024:
Disclaimer Note: The securities quoted, if any, are for illustration only and are not recommendatory. Past performance is not indicative of future results.
Understanding the Top 5 stocks of the list:
Motilal Oswal Financial Services Limited:
Motilal Oswal Financial Services Ltd., a mid-cap firm founded in 1987, serves 1.6 million customers in 550+ cities and towns through 2,500+ locations. It offers various services, including wealth management, broking, asset management, private equity, and investment banking.
By FY2024, the company reported a net profit of Rs.2,446 crore, a significant 161.5% rise from FY2023’s Rs.935 crore. Over the past five years, it achieved a profit growth of 52.7% CAGR. Additionally, it managed assets worth Rs.3.8 lakh crore in FY2024. (Source: Annual Report)
Mazagon Dock Shipbuilders Limited:
Mazagon Dock Shipbuilders Limited is one of India’s oldest shipyards, with roots going back to 1774. It became a Private Limited Company in 1934 and was taken over by the government in 1960. Since then, it has emerged as the country’s top warship builder, crafting vessels for the Navy and offshore structures. By 2024, Mazagon Dock had delivered 802 vessels, including 28 warships, 7 submarines, and various commercial ships and platforms. In FY24, it secured orders worth over Rs.6,000 crore, earned Rs.9,466.58 crore in revenue, and posted a net profit of Rs.1,936.97 crore. The company maintained a 24.5% dividend payout and saw a 5-year CAGR profit growth of 29.5%. (Source: Annual Report)
Axis Bank Limited:
Axis Bank, founded in December 1993, is India’s third-largest private sector bank and the fourth-largest credit card issuer, with a 19.8% market share in FY24. It operates 5,577 branches and has international offices in Dubai, Singapore, Abu Dhabi, Sharjah, and Dhaka. As of September 2024, the bank reported a 3.99% Net Interest Margin, a 16.61% Capital Adequacy Ratio, and a 0.34% Net NPA. Profit After Tax increased 18% YOY to Rs.6,918 crore. The CASA ratio is 40.6%, advances rose 11% YOY to Rs.9,99,979 crore, and total deposits grew 14% YOY to Rs.10,86,744 crore. The loan book expanded by 12% YOY, with retail loans accounting for 71% of the Rs.5,98,715 crore total. (Source: Annual Report)
Finolex Industries Limited:
Finolex Industries Ltd. (FIL), founded in 1981, is a major player in the PVC industry. It offers durable PVC-U pipes and fittings for agriculture, construction, and industrial needs. FIL operates in two segments: PVC Resin and PVC Pipes & Fittings. It’s one of the top competitors in India’s domestic PVC market and has the country’s second-largest capacity for PVC pipes. What makes FIL unique is its vertical integration, as it produces its own PVC resin—the main raw material for pipes. In the quarter ending June 2024, FIL’s income was Rs.1,195.39 crore, down 6.55% from the previous quarter. Despite this, net profit jumped to Rs.500.23 crore from Rs.161 crore in the previous quarter. (Source: Annual Report)
Anand Rathi Wealth Limited:
Anand Rathi Wealth Ltd, founded on March 22, 1995, is a leading name in India’s wealth management scene. It’s one of the top three non-bank mutual fund distributors, offering various financial products. By March 2024, the firm’s 10-year strategy helped 155 clients with assets over Rs.10 crores achieve a 14.6% annual return, with 46% less risk compared to the NIFTY 50 Index. In FY2024, it reported Rs.752 crores in revenue, marking a 35% increase from last year. The AUM grew 52% to Rs.59,351 crores, while PAT rose 34% to Rs.226 crores. About 52.4% of clients hold Rs.5-50 crores in assets, with many crossing the Rs.50 crore mark. Additionally, 23.6% of the AUM comes from clients with over Rs.50 crores in assets, and around 24% of clients have portfolios below Rs.5 crores. (Source: Annual Report)
Top 10 stock performers 18th October from NIFTY 500
Based on the trade volume of 18th October 2024 vs the past one week’s average:
Disclaimer Note: The securities quoted, if any, are for illustration only and are not recommendatory. Past performance is not indicative of future results.
Understanding the stocks of the list:
Manappuram Finance Ltd.:
Manappuram Finance, a non-banking finance company (NBFC), offers a variety of services, like gold loans and money exchange. It is a Systemically Important non-deposit-taking NBFC (NBFC-ND) and the second-largest gold loan lender in India. The company is a leader in process innovation for gold loans, securely managing 59 metric tons of household gold jewelry for 2.5 million active customers.
With a network of over 5,000 branches, Manappuram’s assets under management (AUM) reached Rs.42,100 crore in FY2024, marking an 18.7% growth. Its profit after tax (PAT) rose by 46.5% to Rs.2,197.5 crore, and revenue increased by 32.1% to Rs.8,848 crore. The gold loan portfolio stands at Rs.20,700 crore, with an average gold AUM per branch of Rs.5.86 crore. (Source: Annual Report)
DOMS Industries Ltd.:
DOMS Industries Limited, founded in 2006, specializes in stationery and art supplies. It’s India’s second-largest player in the branded stationery and art market, with a 29% share in pencils and 30% in math instrument boxes in FY23. DOMS operates in over 40 countries and expanded into the Back-to-School segment by acquiring a 51% stake in SKIDO Industries in FY24. As of June 2024, it offered 7 product categories and had a network of 4,750+ distributors, exporting to more than 50 countries. In the June 2024 quarter, operating revenue grew 17.3% year-on-year to Rs.445 crore, while PAT rose 49.5% to Rs.54.3 crore, with a 12.2% PAT margin. (Source: Annual Report)
Mahanagar Gas Limited:
Mahanagar Gas Ltd is India’s top city gas distributor, supplying CNG for vehicles and PNG to homes, businesses, and industries in Mumbai, Thane, and Raigad. Its extensive pipeline network stretches 6,968 km, serving around 12.5 lakh households, with plans to reach 16 lakh. It also caters to 4,200 commercial and industrial clients. In FY2024, Mahanagar Gas launched a joint venture with Baidyanath LNG, creating India’s first LNG retail outlet. Through its subsidiary, Unison Enviro Pvt Ltd, it connected 3,30,330 homes to PNG, the highest for any city gas distributor. Additionally, the company invested in 3EV Industries, which makes electric three-wheelers. For FY2024, Mahanagar Gas reported a net profit of Rs.1,289 crore, a net worth of Rs.5,143 crore, and total revenue of Rs.6,862 crore. (Source: Annual Report)
Indraprastha Gas Limited:
Indraprastha Gas Limited (IGL) was established in 1998 and specializes in city gas distribution in Delhi and surrounding areas like Noida, Ghaziabad, and Gurugram. It is the only distributor of CNG and PNG in Delhi, with CNG accounting for 75% of its sales volume. IGL is a joint venture among GAIL, BPCL, and the Delhi Government, which owns a 5% equity stake. The company serves over 25.6 lakh residential connections and 10,000 industrial customers, operating 819 CNG stations. By FY2024, IGL expanded to 32 districts across 11 Geographical Areas, fulfilling more than 21% of the sector’s demand. It also recorded its highest profit after tax at Rs.1,748 crore, with daily sales averaging 8.43 million cubic meters and total sales reaching Rs.14,363.23 crore. (Source: Annual Report)
Tejas Networks Limited:
Tejas Networks Ltd, founded in 2000, specializes in designing and manufacturing wireline and wireless networking products. The company focuses on technology, innovation, and R&D. Its products serve telecom service providers, utilities, governments, and defense networks across over 75 countries. Tejas is now part of Panatone Finvest Limited, a Tata Sons subsidiary. By the end of FY2024, it had an impressive order book of Rs.8,221 crore. As of June 2024, Tejas reported net sales of Rs.1,562.77 crore, a significant increase of 731.75% compared to Rs.188 crore in June 2023. The company’s net profit for Q1 of FY2025 was Rs.77 crore, down from Rs.147 crore in March 2024, but an improvement from a loss of Rs.26 crore in June 2023. (Source: Annual Report)
The market was headed towards recovery, led by banking and metal stocks. However, the trigger that started the losing streak, persistent sell-offs by the FIIs, has yet to settle. It is thus suggested to keep a vigilant stand regarding any of your investment decisions.
Top 10 stock performers 17th October from NIFTY 500
Based on the closing figures of 17th October 2024:
Disclaimer Note: The securities quoted, if any, are for illustration only and are not recommendatory. Past performance is not indicative of future results.
Understanding the Top 5 stocks of the list:
Mphasis Ltd.:
Mphasis, a global IT solutions provider, focuses on cloud and cognitive services, using advanced technology to help businesses transform worldwide. In June 2006, Electronic Data Systems acquired Mphasis, which later became part of Hewlett-Packard after HP bought EDS. In September 2016, Blackstone Group took over HP’s stake and continues to support Mphasis. In FY2024, Mphasis expanded its investments to Riyadh and nearshore models in Taiwan, Mexico, Poland, and Costa Rica. The company launched the Mphasis Gen AI Foundry with AWS and introduced DeepInsights™ Doc AI. It also formed partnerships with Kore.ai, WorkFusion, and CoreStack. For FY2024, Mphasis reported net revenue of Rs.13,278.5 crore, a 42% year-on-year increase, along with a 73% growth in large deal wins. The company achieved a net profit of Rs.1,684.35 crore. (Source: Annual Report)
Karur Vysya Bank Limited:
Karur Vysya Bank provides a range of banking and financial services, covering retail banking, corporate banking, and treasury operations. It serves over 80 lakh customers through 838 branches across India. As of FY2024, the bank achieved a total business of Rs.1,63,536 crore, reflecting a 16% growth, and recorded a net profit of Rs.1,605 crore with a net interest margin of 4.19%. The capital adequacy ratio stands at 16.67%, supported by total deposits of Rs.89,113 crore and total advances amounting to Rs.74,423 crore. The bank maintains a low net NPA of 0.40%, while its CASA balances total Rs.27,085 crore. Karur Vysya Bank continues to strengthen its presence across the country with a solid financial performance. (Source: Annual Report)
HEG Limited:
HEG Ltd is one of India’s leading graphite electrode makers and exporters. It runs the world’s largest integrated graphite electrode plant, with an annual capacity of 80,000 tons. Part of the LNJ Bhilwara Group, HEG is also active in IT, power, and textiles. It makes various grades of electrodes like UHP, SHP, and HP, and has been exporting 65-70% of its production to 35 countries for over 20 years. In June 2024, HEG’s revenue fell to Rs.571.46 crore from Rs.671.43 crore a year ago, while net profit dropped to Rs.23.04 crore from Rs.139.08 crore. However, its stock price still showed a 44.60% return over the past year, as of 17th October 2024. (Source: Annual Report)
Central Bank of India Ltd.:
Founded in 1911, the Central Bank of India is one of the country’s oldest banks, operating through 4,500 branches. It serves across segments like Treasury Operations, Corporate/Wholesale Banking, Retail Banking, and other banking services. The Treasury segment covers government and other securities, money market, and Forex operations. In FY2023-24, the bank expanded its co-lending network, adding 12 new partnerships with top NBFCs and HFCs, bringing the total to 26 alliances. For FY2024, the bank saw a net profit jump to Rs.2,549 crores, marking a 61.13% year-on-year growth. The total business grew to Rs.6.36 lakh crores. The Net NPA reduced from 1.77% to 1.23%. Total deposits reached Rs.385,011 crore, and advances hit Rs.251,745 crore, a 15.60% increase. CASA deposits were Rs.191,969 crore. (Source: Annual Report)
Latent View Analytics Limited:
Latent View Analytics Ltd offers various analytics services, including consulting, business insights, predictive analytics, data engineering, and digital solutions. It serves blue-chip clients across industries like Technology, BFSI, CPG & Retail, Industrials, and more. Notably, it’s the first analytics company listed on a stock exchange. As of the June 2024 quarter, Latent View’s clientele includes over 30 Fortune 500 companies. The company reported a revenue of Rs.178.9 crore, showing a 21.1% year-on-year growth. Its Profit After Tax (PAT) stood at Rs.38.9 crore, with a PAT margin of 19.8%. (Source: Annual Report)
Top 10 stock performers 17th October from NIFTY 500
Based on the trade volume of 17th October 2024 vs the past one week’s average:
Sno
Symbol
Volume
Volume Change %
1
CRISIL
981961
1963.33 %
2
CHENNPETRO
5661062
1379.16 %
3
BAJAJ-AUTO
3668895
1086.72 %
4
LATENTVIEW
1641774
863.29 %
5
CENTRALBK
23788282
849.61 %
6
KARURVYSYA
14404896
789.1 %
7
MPHASIS
5357498
704.43 %
8
BLUEDART
111737
683.1 %
9
KPIL
1238095
465.37 %
10
TVSMOTOR
2812222
365.99 %
(source: NSE on 17th October 2024)
Disclaimer Note: The securities quoted, if any, are for illustration only and are not recommendatory. Past performance is not indicative of future results.
Understanding the stocks of the list:
CRISIL Ltd.:
CRISIL Ltd is a global analytics company that provides ratings, research, risk, and policy advisory services. It’s India’s top rating agency, having rated over 35,000 large and medium-scale entities, and is a leading provider of high-end research for major banks and corporations. The company operates in three segments: ratings, which account for 28% of revenue and are the most profitable, contributing 51% of total profits; research, which makes up 65% of revenue; and advisory, with a 7% share. Following SEBI regulation changes, CRISIL separated its credit ratings business into a wholly owned subsidiary, CRISIL Ratings Ltd. In H1FY24, it acquired Bridge To India Energy Pvt. Ltd., a renewable energy consulting firm. As of the year ending December 2023, CRISIL’s income from operations was Rs.3140 crore, reflecting an 11% CAGR growth, with a profit after tax of Rs.658 crore and a net worth per share of Rs.299.4. (Source: Annual Report)
Chennai Petroleum Corporation Ltd.:
CPCL is a major player in the petroleum industry, offering a wide range of products. It enjoys Miniratna I status and partners with IOCL to market LPG, Motor Spirit, ATF, and Diesel, catering to diverse needs. It also provides specialty products like Paraffin Wax, MTO, and petrochemical feedstocks, which are crucial for industries. CPCL runs a Wax Plant with a 30,000 MT annual capacity. In FY2024, it reported a net worth of Rs.8,593 crore, up by 37%. The debt-to-equity ratio is 0.32, with a profit after tax (PAT) of Rs.2,711 crore and a turnover of Rs.79,207 crore. The company paid a 30.21% dividend and achieved a return on capital employed (ROCE) of 32%. (Source: Annual Report)
Bajaj Auto Limited:
Bajaj Auto, the flagship of the Bajaj Group, is known for manufacturing two-wheelers and three-wheelers. Based in Pune, India, it exports to 79 countries across regions like Latin America and Southeast Asia. The company holds a 48% stake in KTM, a brand specializing in sports and super sports bikes, up from 14% in 2007. Bajaj is the second-largest player in India’s motorcycle segment by volume and the world’s largest producer of three-wheelers. It’s also India’s top exporter of two-wheelers and three-wheelers. In FY2024, Bajaj achieved record revenue of Rs.44,685 crores, marking a 23% year-on-year growth. Profit after tax reached Rs.7,479 crores, up by 33%. Additionally, exports contribute 32% to its revenue. (Source: Annual Report)
Blue Dart Express Limited:
Blue Dart Express Limited, founded in 1983, focuses on time-sensitive deliveries. It offers door-to-door service through a robust ground and air transportation network. As South Asia’s leading courier and air express distribution company, Blue Dart reported a revenue of Rs.5,267.83 crore in FY2024, with a profit after tax (PAT) of Rs.288.64 crore and a net worth of Rs.1,438.63 crore. Its return on capital employed (ROCE) was 26.6%. In the June 2024 quarter, net sales reached Rs.1,342.71 crore, marking an 8.5% increase from Rs.1,237.55 crore in June 2023. However, net profit fell by 12.83%, dropping from Rs.61.28 crore in June 2023 to Rs.53.42 crore in June 2024. (Source: Annual Report)
Kalpataru Power Transmission Limited:
Kalpataru Power Transmission Ltd, founded in 1981, is a top global EPC company focused on power transmission, distribution, oil and gas pipelines, railways, and biomass power generation. As part of the Kalpataru Group, it operates in 73 countries and manages over 250 projects across 30+ nations. Recently, the company expanded into Sweden and Brazil by acquiring Linjemontage and Fasttel. Its key subsidiaries include Linjemontage, Fasttel, and Kalpataru Power Chile SpA. With a record-high order book of Rs.58,415 crores, reflecting a 27% growth, Kalpataru secured a US$ 900 million oil and gas pipeline order from Aramco in FY24 and entered underground tunneling. The company also achieved its highest-ever revenue of Rs.19,626 crores, with stable net debt at Rs.2,591 crores and a PAT of Rs.516 crores. (Source: Annual Report)
Despite the positive global cues, the domestic market faced considerable losses. This downturn was primarily due to widespread selloffs in several sectors, especially in auto, realty, consumer durables, and finance. While many investors tend to look for an opportunity window, it is suggested to continue with a cautious approach when making investment decisions in an indecisive market like this one.
Top 10 stock performers 16 October from NIFTY 500
Based on the closing figures of 16th October 2024:
Disclaimer Note: The securities quoted, if any, are for illustration only and are not recommendatory. Past performance is not indicative of future results.
Understanding the Top 5 stocks of the list:
UTI Asset Management Company Limited:
UTI, India’s oldest mutual fund, was the first to bring mutual funds to the country. It pioneered equity mutual funds and children’s plans. Registered with SEBI under the SEBI (Mutual Funds) Regulations, 1996, UTI holds a 5.37% market share in the mutual fund industry and 27.4% in the National Pension System. It has a strong presence with 193 touchpoints nationwide. In 2023-24, UTI’s Assets Under Management grew to Rs.18.48 lakh crore, while domestic mutual fund QAAUM reached Rs.2.91 lakh crore. The company also reported a 75% rise in consolidated profit after tax, totaling Rs.766 crore. (Source: Annual Report)
RailTel Corporation of India Limited:
RailTel, a “Navratna” Central Public Sector Enterprise, is one of India’s top ICT providers and a major telecom infrastructure company. It has a Pan-India optic fiber network, covering over 61,000 route kilometers and 6,108 railway stations. RailTel also has 21,000+ km of citywide access across the country. Founded on 26th September 2000, RailTel posted a total income of Rs.2,622 crores and a PAT of Rs.246 crores for FY2024, showing a 31% growth in both turnover and profit compared to last year. In the June 2024 quarter, it reported a total income of Rs.482.73 crores, a 32.47% drop from the March 2024 quarter but a 25.36% rise from June 2023. RailTel’s net profit for this quarter was Rs.38.39 crores. The company also maintained a 39.2% dividend payout and stayed nearly debt-free in FY2024. (Source: Annual Report)
Vardhman Textiles Limited:
Vardhman Textiles Limited is a top Indian textile manufacturer known for yarn, fabrics, acrylic fiber, garments, and special steel. The company produces 240,000 metric tons of yarn and 220 million meters of woven fabric each year. With subsidiaries like Vardhman Acrylics Limited and VTL Investments Limited, it operates in 75 countries, ranking among India’s top three woven fabric manufacturers. However, since 2022, net profits have dipped. In FY2024, the PAT stood at Rs.608 crore with a PAT margin of 6.31%. The company’s net worth increased to Rs.8805 crore, though revenue dropped to Rs.9299 crore from Rs.9841 crore in FY2023. Despite these declines, Vardhman’s stock performed well, delivering a 3-year return of 19.14% and a 1-year return of 31.06% as of 16th October 2024 with a P/E ratio of 19.10. (Source: Annual Report)
Amber Enterprises India Ltd.:
Amber Enterprises India Ltd, founded in 1956, controls 23.6% of India’s Room Air Conditioner (RAC) market and leads as a top OEM/ODM with 29% market share. It offers products like RACs, heat exchangers, and fans. Recently, Amber expanded into washing machines through a partnership with Resojet Private Limited and acquired Ascent Circuits for PCB production. In June 2024, revenue surged 41%, driven by high RAC demand during the summer. Amber also raised its stakes in ILJIN and Ever to 90.2%. For FY2024, revenue reached Rs.6,729 crore, with a profit of Rs.139 crore. The Return on Capital Employed (ROCE) stood at 12.61%, and the Profit After Tax (PAT) was Rs.75 crore, with a 3.1% margin. (Source: Annual Report)
Action Construction Equipment Limited:
Action Construction Equipment Ltd is India’s most diversified CE manufacturer, operating in infrastructure, construction, manufacturing, logistics, and agriculture. It makes and markets hydraulic mobile cranes, mobile tower cranes, material handling equipment like forklifts, road construction machines such as backhoe loaders and compactors, and agricultural tools like tractors and harvesters. It has the fastest service and support network across 100+ locations in India and is the world’s largest pick-and-carry crane manufacturer, with a presence in over 37 countries. Founded in 1995, the company went public in 2006. In FY2024, total income rose by 35.86% to Rs.2,990.9 crore, and profit after tax jumped 90% to Rs.327.64 crore compared to FY23. Revenues from cranes grew by 37.75% to Rs.2,104.59 crore, construction equipment by 54.82% to Rs.386.21 crore, material handling by 8.60% to Rs.183.69 crore, and agri equipment by 12.06% to Rs.237.05 crore. Net profit margin stands at 11.25%. (Source: Annual Report)
Top 10 stock performers 16 October from NIFTY 500
Based on the trade volume of 16th October 2024 vs the past one week’s average:
Sno
Symbol
Volume
Volume Change %
1
NUVOCO
4326394
2851.06 %
2
RAILTEL
29665034
1161.68 %
3
GRINDWELL
280100
827.91 %
4
DCMSHRIRAM
383595
791.14 %
5
KEI
2539992
757.65 %
6
UTIAMC
2603305
663.24 %
7
BLS
12421109
635.45 %
8
ACE
1434786
598.27 %
9
INDIGOPNTS
765535
595.7 %
10
AMBUJACEM
20190855
566.99 %
(source: NSE on 16th October 2024)
Disclaimer Note: The securities quoted, if any, are for illustration only and are not recommendatory. Past performance is not indicative of future results.
Understanding the stocks of the list:
Nuvoco Vistas Corporation Ltd.:
Nuvoco Vista Corporation Ltd (NVCL), part of the Nirma Group, is known for its diverse offerings, from chemicals to real estate. As India’s 5th largest cement group, it has a 25 MMTPA capacity and leads the East Indian market. Nuvoco operates in three segments: Cement, Ready-Mix Concrete (RMX), and Modern Building Materials (MBM), with a presence in 85 locations, including 11 cement plants and 58 RMX plants. It has played a role in key projects like Bharatmala Pariyojana, the Mumbai-Ahmedabad bullet train, and the Western Dedicated Freight Corridor. In FY2024, Nuvoco achieved its highest-ever EBITDA of Rs.1,657 crores, alongside revenue of Rs.10,733 crores and a PAT of Rs.147 crores (1.37% margin). Its ROCE was 5.49%. (Source: Annual Report)
Grindwell Norton Ltd.:
Grindwell Norton Ltd. started manufacturing grinding wheels in India and has grown into a major player in abrasives, ceramics, and performance plastics. In 1990, it became part of the Saint-Gobain Group, a global leader in sustainable construction, with Saint-Gobain currently holding a 51.66% stake in the company. Grindwell Norton also has a subsidiary in Bhutan, Saint-Gobain Ceramic Materials Bhutan Private Limited. For FY2024, the company reported revenue of Rs.2686.77 crore, a PAT of Rs.383.96 crore, and a net profit margin of 19.21%. It maintains a strong dividend payout ratio of 49% and is almost debt-free. Over the past five years, Grindwell Norton has delivered impressive profit growth, with an 18.6% CAGR, while consistently maintaining a healthy dividend payout of 46.1%. (Source: Annual Report)
DCM Shriram Limited:
DCM Shriram, part of the DCM group founded by Sir Shri Ram, operates in diverse sectors. Its agri-rural business covers urea, sugar, ethanol, and hybrid seeds, while its Chloro-Vinyl business focuses on caustic soda, chlorine, and PVC products. It also manages power and cement operations. In addition, Fenesta Building Systems, its value-added business, specializes in UPVC and aluminum windows and doors. As of FY2024, DCM Shriram maintained a 22.9% dividend payout. The company’s total revenue stood at Rs.10,922 crore, compared to Rs.11,547 crore the previous year, with a net worth of Rs.6,476.3 crore. Net profit for FY2023-24 was Rs.447 crore, a 51% drop from the previous year’s Rs.911 crore. However, in the June 2024 quarter, net profit surged to Rs.100.30 crore, up 77.27% from Rs.56.58 crore in the same period last year. (Source: Annual Report)
KEI Industries Limited:
KEI started in 1968 as a partnership, initially focusing on making rubber cables for house wiring. Today, KEI Industries Ltd manufactures a range of wires and cables (W&C) like EHV, HT, and LT cables, serving both Indian and international markets. It also offers Engineering, Procurement, and Construction (EPC) services, catering to retail and institutional clients. With over 30,000 channel partners, KEI’s products reach customers in more than 55 countries worldwide. The company is a market leader in India and a preferred supplier for private and public sector clients globally. In FY 2023-24, KEI achieved a turnover of Rs.8,104.08 Cr., up from Rs.6,908.17 Cr. in FY 2022-23, marking a growth of about 17.31%. The net profit for FY 2023-24 stood at Rs.581.05 Cr., compared to Rs.477.38 Cr. in the previous year, reflecting a 21.72% increase. (Source: Annual Report)
BLS International Services Limited:
BLS International Services Ltd. is a leader in visa, passport, consular, and citizen services. Business Today Magazine has recognized it as one of “India’s Most Valuable Companies.” It partners with 46 client governments, including diplomatic missions, embassies, and consulates, and operates in 66 countries with over 50,000 centers globally. In the June 2024 quarter, the company completed the iDATA acquisition, expanding its market share in Europe. It also signed a Share Purchase Agreement to acquire a 55% controlling interest in Aadifidelis Solutions Pvt. Ltd. For Q1 FY25, the company’s revenue grew by 28.5% year-over-year to Rs.492.7 crore, up from Rs.383.5 crore in Q1 FY24. Its profit after tax rose to Rs.120.8 crore, a 70.1% increase from Rs. 71.0 crore in Q1 FY24, with a PAT margin of 24.5%. The visa and consular business revenue increased by 35.9% year-over-year to Rs.414.1 crore. (Source: Annual Report)
Weak global cues and disappointing September quarter earnings are dampening market sentiment. Despite this, the medium- to long-term outlook remains positive. Foreign investors have been selling off domestic shares this month, causing some local traders to feel uneasy. Many others, however, have taken a cautious approach as volatility continues.
Top 10 stock performers 15 October from NIFTY 500
Based on the closing figures of 15th October 2024:
Disclaimer Note: The securities quoted, if any, are for illustration only and are not recommendatory. Past performance is not indicative of future results.
Understanding the Top 5 stocks of the list:
Angel One Limited:
Angel One Ltd is a financial services company providing stock, commodity, and currency broking, margin trading, depository services, mutual fund distribution, and lending as an NBFC. It also acts as a corporate insurance agent. As of June 2024, Angel One was among the top two for incremental SIPs in Q1 2025, with a client funding book of Rs.3,409.4 crore. The company reported a total net income of Rs.1,110 crore for the quarter, marking a 4.9% rise. However, profit after tax (PAT) declined by 13.9%, settling at Rs.290 crore. The client base also expanded by 11.2%, reaching 2.47 crore. (Source: Annual Report)
Vijaya Diagnostic Centre Limited:
Vijaya Diagnostic Centre Ltd. is South India’s largest diagnostic chain, offering services like nuclear medicine, radiology, lab tests, and health check-ups. It was one of the region’s first to provide PET-CT scans. With 146 centers in 20 cities and NABL-certified labs, it caters to over 400 companies with Corporate Wellness solutions. In FY2024, it acquired PH Diagnostic Centre in Pune, making it a subsidiary. For FY2023-24, Vijaya Diagnostic reported a 21.6% ROCE and a net profit of Rs.114.47 crore. In Q1 FY2024, its revenue reached Rs.156.2 crore, showing a 29.1% year-on-year growth, with a PAT of Rs.31.3 crore and a PAT margin of 20.1%. (Source: Annual Report)
Motilal Oswal Financial Services Limited:
Motilal Oswal Financial Services Ltd., founded in 1987, is a mid-cap firm serving 1.6 million customers across 550+ cities and towns through 2,500+ locations. It offers wealth management, retail and institutional broking, asset management, commodity broking, private equity, investment banking, and more. By FY2024, the company recorded a net profit of Rs.2,446 crore, marking a 161.5% increase from FY2023’s Rs.935 crore. It also achieved a 5-year profit growth of 52.7% CAGR. Additionally, the firm reported assets under management (AUM) of Rs.3.8 lakh crore in FY2024. (Source: Annual Report)
Network18 Media & Investments Limited:
Network18 Media & Investments Limited is India’s leading media and entertainment group, spanning TV, digital content, films, e-commerce, and print. It operates through subsidiaries like TV18 Broadcast Limited and Viacom 18 Media, with stakes in digital content and commerce. It also holds shares in publications like Forbes India and Overdrive. In FY2024, Network18 earned Rs.10,825.66 crore in revenue but faced a loss of Rs.388.96 crore. The company’s net worth was Rs.6,553.2 crore, with a debt-to-equity ratio of 1.10. In the first quarter of FY2025, its net sales reached Rs.3,140.92 crore, showing a 3.03% dip from the June 2023 quarter. (Source: Annual Report)
Five Star Business Finance Limited:
Five Star Business Finance Limited, founded in 1984, is a fast-growing NBFC-ND-SI that provides secured business loans to micro-entrepreneurs and self-employed people in South India. It saw a 65% CAGR from FY17 to FY21. Recently, it expanded by adding 27 branches, taking the total to 547, up from 386 as of June 30, 2023. For the June 2024 quarter, the company reported a gross NPA of 1.41% and a PAT of Rs.251.6 crore, with a loan portfolio worth Rs.10,343.9 crore. Its net interest margin is 16.72%, and the return on assets is 8.23%. The assets under management grew 36% year-on-year to Rs.10,340 crore, while the net worth reached Rs.5,450 crore. (Source: Annual Report)
Top 10 stock performers 15 October from NIFTY 500
Based on the trade volume of 15th October 2024 vs the past week’s average:
Sno
Symbol
Volume
Volume Change %
1
AETHER
3333785
4736.61 %
2
FIVESTAR
10235273
1212.97 %
3
ANGELONE
20907651
1122.5 %
4
SUNTECK
2544418
1077.26 %
5
MOTILALOFS
15761777
1007.1 %
6
NETWORK18
34108809
879.2 %
7
MASTEK
925789
724.16 %
8
AEGISLOG
1351134
447.96 %
9
PVRINOX
1696730
431.85 %
10
FINEORG
77745
361.58 %
(source: NSE on 15th October 2024)
Disclaimer Note: The securities quoted, if any, are for illustration only and are not recommendatory. Past performance is not indicative of future results.
Understanding the stocks of the list:
Aether Industries Ltd.:
Aether Industries Limited, founded in 2013 in Surat, Gujarat, specializes in specialty chemicals. It provides advanced intermediates to pharmaceuticals, agrochemicals, and oil and gas sectors. The company grew at a 28.74% CAGR from FY 2018 to FY 2024. It’s also active in CRAMS (Contract Research and Manufacturing Services), supported by its R&D and Pilot Plant facilities. Aether joined the UN Global Compact Network India and earned a Silver EcoVadis Medal. It went public with an IPO in June 2022. For FY 2024, the total income was Rs.637.38 crore, with a net profit of Rs.82.49 crore, down 37% from FY 2023. A spike in stock trade volume occurred on 15th October 2024 after announcing a significant contract manufacturing deal with Chemoxy International Ltd, a SEQENS group subsidiary. (Source: Annual Report)
Sunteck Reality Ltd.:
Sunteck Realty Limited, based in Mumbai, develops high-end residential and commercial properties across the Mumbai Metropolitan Region (MMR). It’s a leading developer in the Western Suburbs with a 50 million sq ft launch pipeline, and it has expanded to the Eastern Suburbs with 12.1 million sq ft under development. So far, it has delivered 17 projects worth Rs.9,000 crore (US$1.2 billion). As of June 2024, pre-sales rose 30% year-on-year to Rs.502 crore, while collections grew 19% to Rs.342 crore. Sunteck also launched a new project in Dubai’s Burj Khalifa Community, Downtown, with a gross development value of Rs.9,000 crore. Additionally, it partnered with IFC (World Bank Group) and has a net worth of Rs.3,147 crore. (Source: Annual Report)
Mastek Limited:
Mastek, founded in 1982, is a major player in enterprise tech solutions. With nearly 40 years in IT, it has evolved from offering basic IT services to becoming a partner in digital transformation. Mastek provides various services, including application development, support, ERP, cloud migration, business intelligence, agile consulting, and digital commerce. In Q1 FY2025, Mastek launched its icxPro platform in collaboration with NVIDIA, which is a significant milestone in its growth strategy. The company reported revenue of Rs.812.9 crore for Q1 FY2025, reflecting a 9.9% increase compared to last year. However, its profit after tax (PAT) for the quarter was Rs.71.5 crore, a decrease of 2.8% year-over-year, with a return on capital employed (ROCE) of 15.4%. Over the past twelve months, Mastek’s stock has risen by 22.91% as of 15th October 2024. (Source: Annual Report)
Aegis Logistics Limited:
Aegis Logistics, previously Aegis Chemical Industries Ltd., has been around since 1956. It provides logistics solutions for oil, gas, chemicals, and petrochemicals. As a leading player in India’s logistics sector, Aegis runs bulk liquid terminals, LPG terminals, filling plants, pipelines, and LPG stations. In FY2024, it teamed up with Royal Vopak to create Aegis Vopak Terminals Ltd. The company saw its operational profit rise to Rs.993.62 crore from Rs.815.07 crore the previous year. In FY2024, it achieved a net profit margin of 9.54% and a return on net worth of 14.62%. Aegis also declared two interim dividends: 250% at Rs.2.50 per share and 200% at Rs.2 per share during FY 2023-24. (Source: Annual Report)
PVR Inox Limited:
The merger of PVR Ltd. and INOX Leisure Ltd. in 2022-23 was a game changer for the Indian entertainment scene, creating the largest multiplex chain in the country. As of FY2024, the company has already achieved 80-90% of its targeted combined capabilities. It now operates 1,754 screens across 361 cinemas in 113 cities in India and Sri Lanka, with 258 premium and special format screens making up about 15% of its portfolio. Post-merger, the company is moving to a capital-light model and cutting costs. It plans to reduce overall capex in FY’25 by around 25% compared to FY’24 and has partnered with developers for new screen investments. In FY’24, it closed 85 underperforming screens and expects to shut down 70 more in FY’25. In FY2024, the average ticket price rose 10% to Rs.259, while total revenue grew 17% to Rs.6,203.7 crore. The PAT was Rs.114.3 crore, with a PAT margin of 1.8%. (Source: Annual Report)
The short-term trend of Nifty remains choppy, with the market stuck in a broader range of 25,200-24,900 levels. If it makes a decisive move above 25,200, you might see an upside towards 25,500-25,600 levels soon. However, due to weak Q2 results from some major companies and poor global cues, it’s best not to rely too heavily on any predictions. Be cautious with your portfolio decisions while anticipating the announcements of second-quarter results for various companies.
Top 10 stock performers 14 October from NIFTY 500
Based on the closing figures of 14th October 2024:
Disclaimer Note: The securities quoted, if any, are for illustration only and are not recommendatory. Past performance is not indicative of future results.
Understanding the Top 5 stocks of the list:
Aptus Value Housing Finance India Ltd.:
Aptus Value Housing Finance India Ltd focuses on home loans for self-employed and low to middle-income families, mainly in semi-urban and rural areas. It targets first-time homebuyers using self-occupied residential property as collateral. Founded in 2010, Aptus offers housing loans, business loans, quasi-home loans, and insurance support across 267 locations in India. Recently, CARE upgraded its rating to ‘AA-; Positive.’ Aptus has shown strong profitability with a Return on Equity (RoE) of 18.13% and a five-year CAGR of 30% as of June 2024. For the June 2024 quarter, its loan book stood at Rs.9,072 crore, total income at Rs.405 crore, and PAT at Rs.172 crore. The assets under management (AUM) grew 27% year-on-year, with a gross NPA of 1.3%. (Source: Annual Report)
Central Depository Services (India) Ltd:
Central Depository Services Limited (CDSL) plays a vital role in the capital market. It provides services to exchanges, clearing corporations, depository participants (DPs), issuers, and investors. You can hold and trade securities electronically, like equities, bonds, mutual funds, and Treasury Bills. In 2023-24, CDSL celebrated its 25th anniversary and became the first depository to exceed 11.5 crore demat accounts. By the end of FY2024, it reached 11.56 crore investor accounts, boasting a 76% market share. CDSL generated Rs.907 crore in revenue and had a net profit of Rs.420 crore. It collaborated with 580 depository participants and supported 23,060 active companies, offering a record dividend of Rs.22 per share. For the June 2024 quarter, CDSL reported a total income of Rs.286.90 crore, up 7.30% from the previous quarter and 65.02% from June 2023. Its stock saw a growth of 12.92% over three years. (Source: Annual Report)
BSE Limited:
The Bombay Stock Exchange (BSE) is India’s and Asia’s first stock exchange, founded in 1875 on Dalal Street, Mumbai. It got official recognition in 1956 and is famous for its incredible trading speed of just 6 microseconds. In 1986, the BSE launched the S&P BSE SENSEX to monitor market performance. By 2017, it became India’s first listed stock exchange. For FY 2023-24, the BSE reported a remarkable 70% increase in total income, reaching Rs.1617.90 crore. Additionally, net profit soared by 97%, hitting Rs.404.14 crore. (Source: Annual Report)
Federal Bank Limited:
The Federal Bank Limited, originally founded in 1931 as Travancore Federal Bank, is a leading bank in India. It offers retail and corporate banking services, including debit cards and foreign exchange. With 1,504 branches and 2,015 ATMs, it serves around 1.85 crore customers, making it the largest private sector bank in Kerala. As of FY2024, the bank has three associate companies: Federal Operations & Services Limited (100% stake), Ageas Federal Life Insurance Company Limited (26% stake), and Fedbank Financial Services Limited (61.58% stake). This year, it reported its highest-ever profit after tax (PAT) of Rs.3,721 crore, marking a 24% year-on-year growth. The company’s net advances reached Rs.2,09,403 crore, an increase of 20%, while total deposits rose to Rs.2,52,534 crore, which was up 18% year-on-year. The return on equity (ROE) is 14.73%, with a proposed dividend payout ratio of 7.85%. The capital adequacy ratio stands at 16.13%, and the net NPA is at 0.60%. The bank’s assets under management (AUM) grew by 34% to Rs.12,192 crore. (Source: Annual Report)
Raymond Limited:
Raymond Limited has been a key player since 1925, spanning textiles, apparel, real estate, FMCG, and engineering. It operates in over 55 countries, including the USA, Europe, Japan, and the Middle East. With 1,638 stores globally—1,589 in India and 49 abroad—it’s a leading manufacturer of worsted suiting fabric. In June 2023, Raymond demerged its lifestyle business, creating Raymond Lifestyle Limited (RLL). In FY2024, Raymond expanded its reach by acquiring a majority stake of 59.25% in Maini Precision Products Limited (MPPL). The company reported impressive financials, with revenue hitting Rs.9,286 crore for FY2024. In the first quarter ending June 2024, Raymond’s net profit from continuing operations rose by 26.7% to Rs.57.04 crore, up from Rs.45.02 crore in the same quarter last year. Revenue also surged to Rs.937.65 crore, compared to Rs.473.37 crore in June 2023. (Source: Annual Report)
Top 10 stock performers 14 October from NIFTY 500
Based on the trade volume of 14th October 2024 vs the past one week’s average:
Sno
Symbol
Volume
Volume Change %
1
POLYMED
677581
1272.2 %
2
APTUS
18934108
746.49 %
3
JKCEMENT
410555
513.27 %
4
KSB
803920
397.42 %
5
RAYMOND
1402337
393.04 %
6
PGHH
26971
318.81 %
7
PNCINFRA
3253634
316.9 %
8
DMART
4876725
313.28 %
9
CDSL
18199843
282.33 %
10
OBEROIRLTY
3256065
279.87 %
(source: NSE on 14th October 2024)
Disclaimer Note: The securities quoted, if any, are for illustration only and are not recommendatory. Past performance is not indicative of future results.
Understanding the stocks of the list:
Poly Medicure Limited:
Poly Medicure Limited is an Indian manufacturer and exporter of medical devices. It specializes in plastic medical disposables and surgical devices, offering over 130 products in various areas. These include infusion therapy, oncology, anesthesia, respiratory care, urology, gastroenterology, blood management, surgery, wound drainage, dialysis, and veterinary medical devices. As of FY2024, Poly Medicure operates in more than 125 countries. It has been granted over 325 patents. The company reported a revenue of Rs.1,375.79 crore and a profit after tax of Rs.258.25 crore, up from Rs.179.28 crore in FY2023. Its net worth stands at Rs.1,470.05 crore. (Source: Annual Report)
JK Cement Limited:
JK Cement is a leading cement manufacturer in India, established in 1974. As a member of the JK Organisation, it has over 40 years of experience in producing and selling cement and related products. In 1984, it became the first Indian company to set up a dry process White Cement facility, starting with a capacity of 50,000 TPA, which has now grown to 3.05 MnTPA, including a plant in Fujairah, UAE. The company ranks among the top 10 grey cement manufacturers in India and is the fifth-largest in North India and sixth-largest in the central region. As of FY2024, it reported revenues of Rs.10,918 Crores, a 17% increase. Net sales reached Rs.10,563 Crores, up 16%, and PAT was Rs.831 Crores, a 65% growth. The company also invested Rs.1.19 Crores in R&D and declared a dividend of Rs.20 per share. (Source: Annual Report)
KSB Limited:
KSB is a leading supplier of pumps and valves based in Germany, with two companies in India: KSB Limited and MIL Controls Ltd. KSB India is a major manufacturer of pumps, valves, systems, and control valves, with a strong presence across the country through its sales and marketing companies, manufacturing plants, and service operations. Founded in 1960 and headquartered in Pune, KSB India focuses on serving the needs of a growing market. The company has invested in top-notch facilities to produce centrifugal pumps and industrial valves, distributing them throughout the Indian subcontinent. Its plants in Pimpri, Chinchwad, Khandala, Vambori, Coimbatore, and Sinnar showcase outstanding manufacturing practices. KSB India’s infrastructure includes seven manufacturing units, four zonal offices, 14 branch offices, six service stations, over 350 authorized service centers, 22 warehouses, and more than 1,100 dealers. As of June 2024, KSB India reported a total income of Rs.655.5 crore and a net profit of Rs.89.9 crore. (Source: Annual Report)
Procter & Gamble Hygiene and Health Care Limited:
Procter & Gamble Hygiene and Health Care Limited focuses on making and selling well-known packaged fast-moving consumer goods in femcare and healthcare. Its portfolio features leading brands like WHISPER, India’s top feminine hygiene brand. VICKS, the country’s No. 1 healthcare brand, and Old Spice. WHISPER continues to lead the hygiene market. Recently, the company launched Whisper Choice Aloe Vera in the “Comfort & Soft” segment and upgraded its flagship Ultra and Choice products. As of June 2024, PGHH reported a total income of Rs. 939.06 crore and a net profit of Rs.79.67 crore. (Source: Annual Report)
PNC Infratech Limited:
PNC Infratech Limited started as PNC Construction Company Private Limited on August 9, 1999. It became a limited company in 2001 and changed its name in 2007. Today, it is a leader in infrastructure development and management in India. The company provides engineering, procurement, and construction (EPC) services, either on a turnkey or item-rate basis. It manages projects using various models, including DBFOT, OMT, and Hybrid Annuity Mode (HAM). By FY2024, PNC Infratech completed 88 major infrastructure projects, generating revenue of Rs.8,650 crore (up 9%) and a PAT of Rs.909 crore (up 38%), with a margin of 10.5%. Its net worth is Rs.5,185 crore, and it has an order book of Rs.20,400 crore. The company enjoys strong credit ratings of CARE AA+ for long-term debt and CARE A1+ for short-term debt. (Source: Annual Report)
The positive global cues have caused the market to bounce back. However, any investment decision needs to be thought through in detail, keeping the market factors and company trends in mind. A cautious approach is suggested for your portfolio.
Top 10 stock performers 11 October from NIFTY 500
Based on the closing figures of 11th October 2024:
Disclaimer Note: The securities quoted, if any, are for illustration only and are not recommendatory. Past performance is not indicative of future results.
Understanding the Top 5 stocks of the list:
Usha Martin Limited:
Usha Martin Ltd, established in 1960, specializes in manufacturing and selling steel wires, wire ropes, strands, and related machinery. Over the years, it has become a market leader with a broad product range. Its Ranchi plant is one of the largest wire rope factories globally. Usha Martin operates in over 70 countries, supported by 250+ distribution centers and partners. In FY2024, it expanded by creating a new entity in Saudi Arabia to serve the oil, energy, and infrastructure sectors. It also took full ownership of its joint venture in Thailand. The company reported FY2024 revenue of Rs.3,225.2 crore (down 1.3%) and a 21% growth in PAT to Rs.424.1 crore, with an ROCE of 21.9%. (Source: Annual Report)
Bandhan Bank Limited:
Bandhan Bank focuses on serving underbanked markets across India. It started as Bandhan Financial Services Pvt. Ltd (BFSL) in 2006 and became the largest NBFC-MFI by 2014. After getting a banking license from the RBI, it began operations as Bandhan Bank in 2015, taking over BFSL’s microfinance portfolio. Today, Bandhan Bank has a PAN-India presence with 3.35 crore customers, offering various banking products for both micro and general banking. As of FY2024, Bandhan Bank’s total advances stand at Rs.1,24,721 crore, total deposits at Rs.1,35,202 crore, with CASA deposits at Rs.50,151 crore and a CASA ratio of 37.09%. The bank’s net worth is Rs.20,366 crore, PAT Rs.2,230 crore, capital adequacy ratio 18.28%, net interest margin 7.35%, and net NPA at 1.11%. It operates through 4,597 banking units across India. (Source: Annual Report)
Nippon Life India Asset Management Limited:
Nippon Life India Asset Management Limited (NAM India) has been a prominent player in the Indian market since 1995. It manages mutual funds, exchange-traded funds (ETFs), portfolio management services, alternative investment funds, pension funds, and offshore funds. NAM India is promoted by Nippon Life Insurance Company, one of Japan’s leading private life insurers. It operates through 94 branches and a vast network of over 1,01,000 distributors. As of FY2024, the company’s assets under management (AUM) reached Rs.5,23,828 crore, marking a 44% growth from FY2023. It reported a profit after tax (PAT) of Rs.1,107 crore, showing 53% growth. NAM India manages 2.43 crore portfolios with a unique investor base of 1.65 crore and has a nearly 99% dividend payout ratio. (Source: Annual Report)
BSE Limited:
The Bombay Stock Exchange (BSE), founded in 1875 on Dalal Street, Mumbai, is India’s and Asia’s first stock exchange. It became officially recognized in 1956 and is known for its lightning-fast trading speed of 6 microseconds. In 1986, the BSE introduced the S&P BSE SENSEX to track market performance and became India’s first listed stock exchange in 2017. For FY 2023-24, BSE saw a 70% rise in total income, reaching Rs. 1617.90 crore, and a 97% jump in net profit to Rs. 404.14 crore. By 11th October 2024, the BSE SENSEX grew by 22.43% over three years, while NIFTY50 increased by 26.01%. (Source: Annual Report)
Network18 Media & Investments Limited:
Network18 Media & Investments Limited is India’s most diverse media and entertainment group. It operates across TV, digital content, filmed entertainment, film production, e-commerce, print, and more through its subsidiaries, TV18 Broadcast Limited and Viacom 18 Media. It also has stakes in digital content and commerce and is a major shareholder in publications like Forbes India and Overdrive. In FY2024, Network18 reported revenue of Rs.10,825.66 crore, with a loss of Rs.388.96 crore. Its net worth stood at Rs.6,553.2 crore, and its debt-to-equity ratio was 1.10. In the first quarter of FY2025, the company’s net sales were Rs.3,140.92 crore, reflecting a 3.03% decline compared to the June 2023 quarter. (Source: Annual Report)
Top 10 stock performers 11 October from NIFTY 500
Based on the trade volume of 11th October 2024 vs the past one week’s average:
Sno
Symbol
Volume
Volume Change %
1
USHAMART
44645327
5780.3 %
2
BANDHANBNK
129824335
1082.33 %
3
RAJESHEXPO
3032034
917.35 %
4
JUSTDIAL
4245050
704.86 %
5
ANANDRATHI
418090
653.96 %
6
SPARC
2255357
602.42 %
7
TRITURBINE
7114817
426.61 %
8
CUMMINSIND
1851769
391.23 %
9
IPCALAB
1850010
327.21 %
10
CREDITACC
891002
250.3 %
(source: NSE on 11th October 2024)
Disclaimer Note: The securities quoted, if any, are for illustration only and are not recommendatory. Past performance is not indicative of future results.
Understanding the stocks of the list:
Rajesh Exports Limited:
Rajesh Exports Ltd, incorporated in 1989, is a global leader in gold manufacturing and exports. It operates across the entire gold value chain, from refining to retailing, and processes 35% of the world’s gold. The company has the capacity to refine 2,400 tons of precious metals annually. Since its inception, it has consistently shown profitable growth and has paid out 100% dividends for the past 10 years. Its retail brand, SHUBH Jewellers, is well-known in the market. For FY2024, Rajesh Exports reported a net profit of Rs.337.03 crore and a total income of Rs.2,80,676.35 crore. As of the June 2024 quarter, it remains debt-free, with revenue of Rs.47,552.6 crore and a net profit of Rs.271.6 crore. (Source: Annual Report)
Just Dial Limited:
Justdial is India’s leading local search engine, offering search services across its app, website, and voice/text platforms. It operates in over 250 cities and 11,000 pin codes with around 12,000 employees across telesales, marketing, and ground activities. The company earns 70% of its revenue from 11 major cities like Mumbai, Bengaluru, and Delhi. Its tech and R&D division is based in Bengaluru. By Q1 FY25, Justdial had 583,690 active paid campaigns, 149.1 million ratings and reviews, and 44.9 million listings. The same quarter saw 181.3 million unique visitors. For June 2024, Justdial’s revenue hit Rs.280.6 crore, with a net profit of Rs.141.2 crore and a 38.4% profit margin. (Source: Annual Report)
Anand Rathi Wealth Limited:
Anand Rathi Wealth Ltd, founded on March 22, 1995, is a top player in India’s wealth solutions sector. It ranks among the top three non-bank mutual fund distributors, offering a range of financial products and services. By March 2024, 155 clients with over Rs.10 crores in assets saw a 14.6% annual return with 46% less risk than the NIFTY 50 Index, thanks to its 10-year strategy. In FY2024, the firm reported Rs.752 crores in revenue, up 35% from the previous year. The AUM grew 52% to Rs.59,351 crores, and PAT rose 34% to Rs.226 crores. 52.4% of its clients hold between Rs.5 and Rs.50 crores in investible assets, with many exceeding Rs.50 crores. Meanwhile, 23.6% of the AUM comes from clients with over Rs.50 crores in assets, and around 24% of clients have portfolios below Rs.5 crores. (Source: Annual Report)
Sun Pharma Advanced Research Company Limited:
SPARC is a clinical-stage biopharmaceutical firm dedicated to developing innovative treatments to improve patient care worldwide. Established in 2007 after a demerger from Sun Pharmaceutical Industries Limited, SPARC stands out as India’s first listed pharma R&D company. The founders still hold 70% ownership and actively invest in the company. SPARC focuses on oncology, neurodegeneration, and immunology, with a presence in the US and India. Its research facility in Vadodara spans 46,000 sq. ft., housing over 200 scientists across 42 labs. In FY2024, SPARC generated revenues of Rs.75.55 crore but faced a loss of Rs.387.21 crore, resulting in an earnings per share (EPS) of Rs.11.93. As of October 11, 2024, the company’s shares saw a negative return of -5.65% over the past year. (Source: Annual Report)
Triveni Turbine Limited:
Triveni Turbine Limited (TTL) is a leader in industrial heat and power solutions, focusing on steam turbines up to 100 MW. It dominates India’s industrial steam turbine market and ranks among the top global manufacturers. TTL specializes in steam turbine solutions for industrial heating and power generation, including renewable options. In 2022, TTL acquired a 70% stake in TSE Engineering, South Africa, and established a subsidiary in Texas, USA, by FY2024. The company serves customers in over 20 industries across over 80 countries, with over 6,000 turbines installed worldwide. In FY2024, TTL reported a net profit of Rs.269 crore and declared a 15% dividend payout, achieving a 31.3% return on equity. For the June 2024 quarter, TTL’s net sales rose 23.08% to Rs.463.28 crore, while net profit increased by 31.74% to Rs.80.03 crore, up from Rs.60.75 crore in June 2023. (Source: Annual Report)
Concerns about the Middle East conflict, foreign portfolio investor (FPI) outflows, and worries over potential earnings moderation have affected investor sentiment. The market is experiencing selling pressure with every rise. However, strong performance in key sectors like IT, pharma, and metals is helping to slow the downward trend. Given the current situation, it’s wise to adopt a cautious approach to your investment decisions until the market indices display decisive trends.
Disclaimer Note: The securities quoted, if any, are for illustration only and are not recommendatory. Past performance is not indicative of future results.
Understanding the Top 5 stocks of the list:
Gujarat Ambuja Exports Ltd.:
Gujarat Ambuja Exports (GAEL) has been producing corn starch derivatives, soya derivatives, feed ingredients, cotton yarn, and edible oil since 1991. It focuses on the food, pharmaceutical, and feed industries with a solid growth strategy in agro-processing. GAEL holds a leading position in this domain. The company operates through 80+ distributors across 10 domestic locations and exports to over 100 countries. In FY2024, its machinery investment reached Rs.1,276 Crore. GAEL reported a revenue of Rs.4,927 Crore in FY2024, with a net profit of Rs.346 Crore and a 15% RoCE. The dividend per share was Rs.0.35. The company also delivered a three-year return of 68.43% as of 9th October 2024. (Source: Annual Report)
Divi’s Laboratories Ltd.:
Divi’s Laboratories Ltd., based in Hyderabad, has been a leading player in the pharmaceutical industry for over 30 years. It has two manufacturing units and focuses on producing high-quality APIs, Intermediates, and Registered Starting Materials, supplying over 100 countries. The company operates in three segments: Generic APIs, Custom Synthesis, and Nutraceuticals. With a total capacity of 14,600 M³, it offers 160 products across different therapeutic areas. Divi’s has two subsidiaries in New Jersey and Basel to serve its nutraceutical clients better. Despite a drop in net profit margin to 19.70% in FY2024 from 22.67% in FY2023, revenue from operations increased to Rs.7,845 crore. The net profit for the quarter ending June 2024 also rose to Rs.430 crore. (Source: Annual Report)
Central Depository Services (India) Ltd:
Central Depository Services Limited (CDSL) is a key player in the capital market, offering services to exchanges, clearing corporations, depository participants (DPs), issuers, and investors. It lets you hold and transact securities electronically, including equities, bonds, mutual funds, and Treasury Bills. In 2023-24, CDSL celebrated its 25th anniversary and became the first depository to surpass 11.5 crore demat accounts. By the end of FY2024, CDSL had 11.56 crore investor accounts, holding a 76% market share, with a revenue of Rs.907 crore and a net profit of Rs.420 crore. It worked with 580 depository participants and supported 23,060 live companies, offering the highest-ever dividend per share of Rs.22. For the June 2024 quarter, CDSL’s total income was Rs.286.90 crore, reflecting a 7.30% increase from the previous quarter and a 65.02% rise compared to June 2023. Its stock showed a 4.45% growth over three years. (Source: Annual Report)
RITES Limited:
RITES Limited, founded in 1974, is a major public sector player in India’s transport consultancy and engineering. It’s the exclusive export arm of Indian Railways for rolling stock, except in Thailand, Malaysia, and Indonesia. RITES deals with locomotives, coaches, wagons, and train sets in various gauges. It also offers consultancy, exports, leasing, and turnkey solutions for railways, metros, airports, and highways. In FY2024, RITES had a strong dividend yield of 3.08%, with a payout ratio of 88.3%. However, in June 2024, its net sales dropped to Rs. 485.76 crore, down 10.76% from the previous year. The quarterly net profit also fell by 26.84%, reaching Rs. 79.02 crore, and EBITDA decreased by 28.62%, standing at Rs. 128.27 crore. (Source: Annual Report)
Gujarat Fluorochemicals Limited:
Gujarat Fluorochemicals Limited, part of the INOX Group, was formed in 2018 after a demerger from GFL Ltd. It is a leading producer of fluoro-polymers, chemicals, fluoro-specialties, and refrigerants in India. Globally, it’s one of the top five in the fluoropolymers market, exporting to regions like Europe, the Americas, Japan, and Asia. Some of its famous brands include Inoflon, Flounox, Inoflar, Inoclub, and Refron. With a presence in 16 countries, the company has grown at a 20% CAGR over the past five years. Backed by 30 years of experience in fluorine chemistry, it posted Rs. 4,281 crores in revenue for FY2024, with Rs. 435 crores in PAT and a 10% PAT margin. Its ROCE for FY2024 stands at 14.63%. (Source: Annual Report)
Top 10 stock performers 9 October from NIFTY 500
Based on the trade volume of 9th October 2024 vs the past one week’s average:
Sno
Symbol
Volume
Volume Change %
1
RITES
25278248
909.68 %
2
TORNTPOWER
4857383
748.81 %
3
GAEL
15218515
688.95 %
4
ELGIEQUIP
1289206
467.93 %
5
IDFC
65252142
401.0 %
6
BIRLACORPN
609134
385.99 %
7
IDFCFIRSTB
120767984
278.63 %
8
MAHABANK
39969400
277.36 %
9
SKFINDIA
152708
276.27 %
10
METROBRAND
257738
270.64 %
(source: NSE on 9th October 2024)
Disclaimer Note: The securities quoted, if any, are for illustration only and are not recommendatory. Past performance is not indicative of future results.
Understanding the stocks of the list:
Torrent Power Limited:
Torrent Power Ltd, part of the Torrent Group, is one of India’s leading power utility companies. It operates in power generation, transmission, and distribution, with a strong presence in Gujarat, Maharashtra, Uttar Pradesh, and Karnataka. The company is known for handling large power projects and plays a key role in Gujarat’s private sector. It also manufactures and supplies power cables. Recently, Torrent Power secured renewable project contracts of around 956 MW, with high CUF requirements. The company now has about 3 GWp of renewable capacity under construction, involving a capex of Rs.18,000 crore. Their total renewable capacity is expected to reach 4.3 GW in the next 2-3 years, nearing their goal of 5 GW. In FY2024, Torrent Power’s generation capacity was 4,328 MW. For the June 2024 quarter, net sales increased by 23.28% to Rs.9,033.73 crore, while net profit surged 87.96% to Rs.972.24 crore from Rs.517.27 crore in June 2023. (Source: Annual Report)
Elgi Equipments Limited:
Elgi Equipments Ltd., established in 1960, is a mid-cap player in the Electric/Electronics sector. They offer over 400 products, including air compressors, automotive equipment, diesel-powered portable compressors, and medical air systems. Their presence spans 120+ countries as of FY2024. In 2023-24, Elgi reported an operating revenue of Rs.3217.8 crore, reflecting 6% growth. The net profit stood at Rs.311.9 crore, with a return on capital employed (ROCE) of 305%. The company’s stock has delivered 233.68% returns over three years and 35.32% in the past year, as of 9th October 2024. On the same date, the stock’s price-to-earnings (P/E) ratio was 63.78. (Source: Annual Report)
IDFC Limited:
IDFC Limited, established in 1997, is a Non-Banking Finance Company (NBFC) regulated by the Reserve Bank of India. It holds investments in IDFC FIRST Bank and IDFC AMC, with a 36.60% stake in the former and 99.96% in the latter. Previously, IDFC focused on financing infrastructure projects in energy, telecom, and industrial sectors until 2015. IDFC operates through listed entities like IDFC FIRST Bank, while other businesses are unlisted. It has investments totaling INR 7,386 crore in financial services such as banking, asset management, investment banking, broking, and infrastructure debt funds. These are managed under IDFC Financial Holding Company Limited. As of FY2024, the company is nearly debt-free, showing strong profit growth of 30.8% CAGR over the last five years, with a net profit of INR 1,046 crore. (Source: Annual Report)
Birla Corporation Limited:
Birla Corporation Limited is the flagship company of the M.P. Birla Group. Founded in 1919 as Birla Jute Manufacturing Company Limited, it was shaped by the vision of the Late Mr. Madhav Prasad Birla. The company manufactures various cement types, including OPC, PPC, fly ash-based PPC, Low-Alkali Portland Cement, and Portland Slag Cement. It also has a significant presence in the jute goods industry. Recently, Birla Corporation acquired 100% of Reliance Cement Company, a subsidiary of Reliance Infrastructure, for an enterprise value of Rs.4,800 crores. In the fiscal year 2023-24, it reported a turnover of Rs.9,662.72 crores and a net profit of Rs.420.56 crores. As of FY2024, its net worth stands at Rs.6,674 crores, with a debt-to-equity ratio of 0.67 times and a dividend payout of 25%. (Source: Annual Report)
IDFC First Bank:
IDFC First Bank provides a variety of banking services across India. It was formed by merging the former IDFC Bank and Capital First on December 18, 2018. This bank was the first to offer monthly credit on savings accounts. With a total business exceeding Rs. 4 lakh crore, it offers over 25 products, including retail banking, SME services, corporate banking, and wealth management. IDFC First Bank operates 944 branches and 1,164 ATMs nationwide. As of FY2024, customer deposits grew at a CAGR of 37%. The bank issued loans and advances worth Rs.2,00,965 crore, a growth of 25.14%. Its net NPA stands at 0.60%, while total deposits reached Rs. 2,00,576 crore, marking a 38.68% increase. The CASA ratio is 47.25%, and the bank’s capital adequacy ratio is 16.11%, with a net worth of Rs.32,161 crore and a PAT of Rs.2,957 crore, reflecting a 21.31% increase. (Source: Annual Report)
Central banks worldwide are easing rates as inflation falls. The US Federal Reserve recently cut rates for the first time in over four years. Following this trend, the RBI has also taken action as early signs of slowing economic growth emerge. In the markets, things turned around in the second half, with stocks slipping into the red due to selective profit-taking. Investors are becoming more cautious as the second-quarter earnings season approaches. For markets to perform well moving forward, strong conviction is important. However, clear signals might take time to appear. Given the current situation, staying cautious with your investments is suggested.
Top 10 stock performers 8th October 2024 from NIFTY 500
Disclaimer Note: The securities quoted, if any, are for illustration only and are not recommendatory. Past performance is not indicative of future results.
Understanding the Top 5 stocks of the list:
One 97 Communications Ltd. (Paytm):
Paytm, India’s top consumer and merchant digital ecosystem, was founded in 2000. By March 2021, it had over 333 million customers and 21 million registered merchants. In FY2024, its merchant subscriptions hit 1.07 crore, with 9.6 crore monthly users. The company’s loan distribution saw strong growth, disbursing Rs.52,390 crore in loans, a 48% increase from the previous year. Paytm also issued 12 lakh cards through partnerships with SBI Card, HDFC Bank, and Kotak Bank. While its revenue reached Rs.9,978 crore, it recorded a net loss margin of 14.3%. On a positive note, Paytm reduced its debt, with a debt-to-equity ratio of just 0.01. (Source: Annual Report)
Safari Industries Ltd.:
Safari Industries has been in the luggage business since 1974, offering both hard and soft luggage under brands like Safari, Magnum, Genius, and Genie. Recently, they introduced a budget-friendly range of polypropylene (PP) luggage available in standalone stores, canteen stores, and e-commerce platforms like Amazon and Flipkart. Their products are also sold through B2B and B2C channels. The company has experienced strong growth, with a 44.7% CAGR over the last five years (as of FY2024). Its stock price rose by 52.84% in the past year, as of August 7th, 2024. For FY2024, Safari’s revenue from operations reached Rs.1,550.42 crore, with total income at Rs.1,564.30 crore, up from Rs.1,221.44 crore the previous year. (Source: Annual Report)
BSE Limited:
The Bombay Stock Exchange (BSE) is India’s first stock exchange, established in 1875 on Dalal Street, Mumbai. It was also Asia’s first stock exchange and gained official recognition in 1956. BSE is famous for its ultra-fast trading speed of 6 microseconds. In 1986, it introduced the S&P BSE SENSEX to track market performance. BSE became India’s first listed stock exchange in 2017. For FY 2023-24, its total income jumped 70% to Rs.1617.90 crore, and net profit increased 97% to Rs.404.14 crore. It also created a Capital Redemption Reserve of Rs.1,73,064 due to share buybacks. As of 8th October 2024, the BSE SENSEX rose 35.92% in three years, while NIFTY50 grew 39.78%. (Source: Annual Report)
Triveni Turbine Limited:
Triveni Turbine Limited (TTL) is a leader in industrial heat and power solutions, focusing on steam turbines up to 100 MW. TTL dominates India’s industrial steam turbine market and is among the top global manufacturers. They specialize in steam turbine solutions for industrial heating and power generation, including renewable options. In 2022, TTL acquired a 70% stake in TSE Engineering, South Africa, and established a subsidiary in Texas, USA, by FY2024. The company serves customers in over 20 industries across 80+ countries, with more than 6,000 turbines installed worldwide. In FY2024, TTL reported a net profit of Rs. 269 crore and declared a 15% dividend payout. They also achieved a 31.3% return on equity. In the June 2024 quarter, TTL’s net sales rose 23.08% to Rs. 463.28 crore, while their net profit increased by 31.74% to Rs. 80.03 crore from Rs. 60.75 crore in June 2023. (Source: Annual Report)
HEG Limited:
HEG Ltd is one of India’s top manufacturers and exporters of graphite electrodes. It operates the world’s largest integrated graphite electrode plant, with a yearly production of 80,000 tons. As part of the LNJ Bhilwara Group, HEG is also involved in IT services, power, and textiles. The company produces different grades of graphite electrodes, like UHP, SHP, and HP, exporting 65-70% of its output to 35 countries for over 20 years. In June 2024, HEG’s revenue dropped to Rs.571.46 crore from Rs.671.43 crore in June 2023, while its net profit declined to Rs.23.04 crore from Rs.139.08 crore. HEG’s stock price, on the other hand, gave a return of 37.66% over the past year as of 8th October 2024. (Source: Annual Report)
Top 10 stock performers 8th October 2024 from NIFTY 500
Based on the trade volume of 8th October 2024 vs the past one week’s average:
Sno
Symbol
Volume
Volume Change %
1
AIAENG
459268
621.56 %
2
TRITURBINE
3983241
444.37 %
3
GPIL
5820327
334.86 %
4
GILLETTE
104121
305.72 %
5
CARBORUNIV
392423
263.01 %
6
RVNL
19575176
250.24 %
7
MFSL
2057619
249.51 %
8
DIXON
1221261
236.49 %
9
ZFCVINDIA
18518
205.45 %
10
GRSE
2039399
180.1 %
(source: NSE on 8th October 2024)
Disclaimer Note: The securities quoted, if any, are for illustration only and are not recommendatory. Past performance is not indicative of future results.
Understanding the stocks of the list:
AIA Engineering Ltd.:
AIA manufactures high-chrome grinding media, liners, and diaphragms, known as mill internals. These are essential for crushing and grinding in the cement, power, and mining industries. As a leading partner in the Mining, Cement, and Quarry sectors, AIA Engineering Ltd. offers innovative products and complete solutions to boost productivity. The company operates across 120+ countries, with five manufacturing clusters and 10+ warehouses. It’s currently expanding its non-grinding media business with a planned investment of Rs.200 crores, Rs.110 crores of which has already been spent. AIA also added a group captive hybrid project (wind and solar) in Gujarat, increasing renewable energy capacity to 37.38 MW. As of FY 2024, the company’s revenue reached Rs.4,853.76 crore, with a PAT of Rs.1,136.99 crore and a 23% PAT margin. (Source: Annual Report)
Godawari Power & Ispat Limited:
Godawari Power & Ispat (GPIL) specializes in mining iron ore and producing iron ore pellets, sponge iron, steel billets, wire rods, and ferro alloys, along with generating electricity. It operates two captive mines, Ari Dongri, and Boria Tibu, with a total reserve of 165 MnT, supporting over 35 years of production. These mines cover 85% of its iron ore needs, cutting down raw material costs. In FY 2024, GPIL achieved impressive growth, increasing steel billet production by 48%, sponge iron by 20%, and ferro alloys by 18%. It also bought back 2.15 million shares at Rs.1400 per share. The company’s revenue reached Rs.5,455 crores, with a PAT rise of 18% and an ROCE of 28%. (Source: Annual Report)
Gillette India Ltd.:
Gillette India Limited is a public company that operates in the grooming and oral care segments. It offers popular brands like Fusion5, SkinGuard Sensitive, MACH3, Guard3, Styler, and Presto. For the quarter ending March 2024, Gillette reported a total income of Rs.686.43 crore. This was a 6.15% increase from Rs.646.65 crore last quarter and an 8.81% jump from Rs.630.84 crore in March 2023. The company is nearly debt-free and posted a net profit of Rs.356 crore for FY2024. As of 8th October 2024, its 1-year returns were 42.14%, significantly outperforming the NIFTY50’s 39.78%. Plus, the company’s 3-year CAGR revenue is maintained at 9.2% as of the same date. (Source: Annual Report)
Carborundum Universal Ltd.:
CUMI, part of the 124-year-old Murugappa Group, started in 1954 as an abrasives company. Over time, it has grown into a fully integrated “mines-to-market” operation, handling everything from mining to power generation, manufacturing, marketing, and distribution. CUMI produces abrasives, ceramics, refractories, and electro-minerals, offering rigid and flexible abrasives like Bonded Abrasives, Coated Abrasives, Metal Working Fluids, and Super Abrasives. With over 70 years of experience, CUMI holds a 30% share of India’s bonded abrasives market. It has a manufacturing presence in 5 countries and sells to 40+ countries. In FY2024, revenue reached Rs.4,628.2 crore with a PAT of Rs.461.3 crore. For the June 2024 quarter, net sales were Rs.1,197.54 crore, slightly down from Rs.1,203.22 crore in June 2023. Net profit dropped to Rs.112.96 crore, while EBITDA saw a marginal rise to Rs.200.59 crore. (Source: Annual Report)
Rail Vikas Nigam Limited:
Rail Vikas Nigam Ltd (RVNL) is a Navratna Company established in 2003 by the Government of India. It operates as a fully-owned public sector unit under the Ministry of Railways. RVNL focuses on various rail infrastructure projects, including doubling tracks, gauge conversions, new lines, railway electrification, major bridges, workshops, and production units. It also shares freight revenue with the Railways per its concession agreements. By March 2005, RVNL was fully operational and had received an “Excellent” rating from the Department of Public Enterprises for nine years, ranking first among Railway PSUs four times in the last five years. As of FY2024, RVNL reported a revenue of Rs.21,732.58 crore, a net worth of Rs.7,867.28 crore, and a dividend of Rs.439.94 crore. The profit after tax (PAT) was Rs.1,463 crore, with a three-year CAGR net profit growth rate of 12% and a return on equity of 21%. Its return on capital employed (RoCE) for FY2024 was 19%, slightly up from 18% in FY2023. (Source: Annual Report)
While geopolitical conditions have trapped multiple markets in a lingering negative sentiment, the RBI Policy has raised the levels of uncertainty in the Indian indices. The current recovery phase can be used to selectively lighten positions. However, it is imperative that you remain cautious with your selections and make all your decisions only after thorough market research.
Top 10 stock performers 7th October 2024 from NIFTY 500
Disclaimer Note: The securities quoted, if any, are for illustration only and are not recommendatory. Past performance is not indicative of future results.
Understanding the Top 5 stocks of the list:
Finolex Industries Limited:
Finolex Industries Ltd. (FIL), founded in 1981, is a key player in the PVC industry. It offers durable PVC-U pipes and fittings for agriculture, construction, and industrial use. FIL has two main divisions: PVC Resin and PVC Pipes & Fittings. It’s a leading competitor in the domestic PVC markets and holds India’s second-largest capacity for PVC pipes. What sets FIL apart is its vertical integration, producing its own PVC resin, the primary raw material for pipes. For the quarter ending June 2024, FIL’s income was Rs.1,195.39 crore, a 6.55% drop from the previous quarter. However, net profit rose to Rs.500.23 crore from Rs.161 crore in the previous quarter. (Source: Annual Report)
CG Power & Industrial Solutions Ltd.:
CG Power & Industrial Solutions offers utilities, industries, and consumers sustainable electrical energy solutions. The company operates in two main segments: Power Systems and Industrial Systems. It has been around for over 85 years and was recently acquired by Murugappa Group’s Tube Investments, with a Rs.700 crore infusion in FY2020. The Industrial Systems division focuses on Motors & Drives and Railways, while Power Systems deals with transformers and switchgears. CG has nine manufacturing plants in India and one in Sweden, with 3,113 employees. In FY2024, the company earned Rs.8,046 crore in revenue, up 15% from Rs.6,973 crore in FY2023. The order intake reached Rs.10,512 crore, and its unexecuted order book grew by 44% to Rs.6,411 crore. India Ratings upgraded CG’s long-term credit rating to ‘IND AA+’. The company paid an interim dividend of Rs.199 crore, with a PAT of Rs.870 crore and a net worth of Rs.3,017 crore. (Source: Annual Report)
AstraZeneca India Limited:
AstraZeneca India, founded in 1979 and based in Bengaluru, Karnataka, manufactures and sells pharmaceuticals in areas like cancer, cardiovascular health, respiratory issues, gastrointestinal problems, neurosciences, and infections. It’s supported by AstraZeneca plc, a global biotech company from England. As of September 30, 2024, AstraZeneca Pharma India Ltd. (AZPIL) recorded a one-year return of 76.98% and a three-year return of 157.96%. In FY2024, the company had a dividend payout of 39.3% and reported a net profit of Rs. 162 crore. For the quarter ending June 2024, AZPIL’s revenue grew by 29% year-on-year. (Source: Annual Report)
Supreme Industries Limited:
Supreme Industries Limited is India’s top plastic product manufacturer, offering many products. It operates in categories like Plastic Piping Systems, Cross Laminated Films, Protective Packaging, Industrial Moulded Components, Moulded Furniture, and more. The company holds a 30.78% stake in Supreme Petrochem Ltd (SPL). In FY2024, SPL is moving forward with its ambitious expansion plan. The first line of the MASS ABS Project is on track and expected to start by Q4 of FY2024-25. For FY2023-24, Supreme Industries reported net revenue of Rs.10,134.20 crore, with a 26.3% growth in product turnover by volume. The PAT for the same period was Rs.1,016.17 crore, and the earnings per share (EPS) stood at Rs.80.00. (Source: Annual Report)
Blue Dart Express Limited:
Blue Dart Express Limited, founded in 1983, specializes in time-sensitive deliveries. It provides door-to-door service via its ground and air transportation network. Blue Dart is South Asia’s leading courier and air express distribution company. In FY2024, the company reported revenue of Rs.5,267.83 crore, with a PAT of Rs.288.64 crore and a net worth of Rs.1,438.63 crore. Its return on capital employed (ROCE) was 26.6%. For the June 2024 quarter, net sales reached Rs.1,342.71 crore, an 8.5% increase from Rs.1,237.55 crore in June 2023. However, net profit for the same quarter dropped by 12.83%, from Rs.61.28 crore in June 2023 to Rs.53.42 crore in June 2024. (Source: Annual Report)
Top 10 stock performers 7th October 2024 from NIFTY 500
Based on the trade volume of 7th October 2024 vs the past one week’s average:
Sno
Symbol
Volume
Volume Change %
1
FINPIPE
11331818
1448.65 %
2
BRIGADE
2470388
337.14 %
3
ASTRAZEN
1116761
299.92 %
4
NATCOPHARM
2566447
261.09 %
5
MPHASIS
2253788
248.79 %
6
CGPOWER
8376679
247.17 %
7
APTUS
4043162
240.72 %
8
UTIAMC
762246
212.22 %
9
CRISIL
106552
209.46 %
10
RVNL
13064366
199.97 %
(source: NSE on 7th October 2024)
Disclaimer Note: The securities quoted, if any, are for illustration only and are not recommendatory. Past performance is not indicative of future results.
Understanding the stocks of the list:
Brigade Enterprises Ltd.:
Brigade Enterprises Ltd was founded in 1986 and is based in Bengaluru, focusing on real estate development in South India. The company has completed over 250 buildings, totaling more than 70 million square feet across Bengaluru, Mysuru, Chennai, Ahmedabad, Hyderabad, and Kochi. It’s among the top 10 listed developers in India by market capitalization, serving over 40,000 customers. Brigade’s diverse portfolio includes residential and commercial properties, SEZs, hospitality, townships, and schools. It also partners with global investors, including the GIC (Government of Singapore Investment Corporation). In FY2024, Brigade achieved record sales of Rs.6,013 crore. Revenue reached Rs.5,064.2 crore, marking a 42% growth, with a PAT of Rs.401 crore—up 81%. Collections rose by 9% to Rs.5,915 crore, and net worth stood at Rs.3,557.8 crore. They also inaugurated Ramaiah Memorial Hospital at Brigade Orchards, their 135-acre smart township. (Source: Annual Report)
NATCO Pharma Limited:
NATCO Pharma Limited (NATCO) is a pharmaceutical company that focuses on research and development. It develops, manufactures, and markets complex products for niche therapeutic areas. NATCO operates in three segments: finished dosage formulations (FDF), active pharmaceutical ingredients (APIs), and contract manufacturing. The company targets niche opportunities in the US, focusing on Para IV and First-to-File molecules. It has begun winning tenders in Asian markets like Malaysia and Thailand. NATCO is dedicated to high-barrier-to-entry products that involve intricate chemistry, challenging delivery systems, or complex manufacturing processes. For the quarter ending June 2024, the profit after tax was Rs.668.5 crore, with a PAT margin of 47.4%. Total revenue reached Rs.1,410.7 crore, including Rs.1,210.1 crore from pharma export formulations. The Board declared an interim dividend of Rs.3 per equity share of Rs.2 each. (Source: Annual Report)
Mphasis Ltd.:
Mphasis is a global IT solutions provider specializing in cloud and cognitive services. It uses next-generation technology to help businesses transform worldwide. In June 2006, Electronic Data Systems Corporation acquired Mphasis, which later became a subsidiary of Hewlett-Packard (HP) after HP acquired EDS. In September 2016, Blackstone Group acquired HP’s stake, and they still promote Mphasis today. In FY2024, Mphasis invested in Riyadh and nearshore models in Taiwan, Mexico, Poland, and Costa Rica. The company launched the Mphasis Gen AI Foundry with Amazon Web Services (AWS) and introduced DeepInsights™ Doc AI. It also formed strategic partnerships with Kore.ai, WorkFusion, and CoreStack. For FY2024, Mphasis reported a net revenue of Rs.13,278.5 crore, marking a 42% year-on-year increase. It also saw a 73% rise in large deal wins and a net profit of Rs.1,684.35 crore. (Source: Annual Report)
Aptus Value Housing Finance India Ltd.:
Aptus Value Housing Finance India Ltd is a home loan company focused on self-employed and low to middle-income families, mainly in semi-urban and rural areas. They primarily target first-time homebuyers, using self-occupied residential property as collateral. Aptus offers a range of products, including housing loans, business loans, quasi-home loans, and insurance support. Founded in 2010, it operates in 267 locations across India. Recently, CARE upgraded its rating to ‘AA-; Positive’ from ‘AA-; Stable.’ Aptus has shown strong profitability, with a Return on Equity (RoE) of 18.13% and a five-year CAGR of 30% as of June 2024. In the June 2024 quarter, Aptus reported a loan book of Rs.9,072 crore, a total income of Rs.405 crore, and a PAT of Rs.172 crore. Its assets under management (AUM) grew by 27% year-on-year, with a gross NPA of 1.3%. (Source: Annual Report)
Dr. Lal PathLabs Limited:
UTI is India’s oldest mutual fund registered with SEBI under the SEBI (Mutual Funds) Regulations, 1996. It was the first to introduce mutual funds in India, paving the way for equity mutual funds and children’s plans. With a 5.37% mre, achieving a 23% PAT arket share in the mutual fund industry and 27.4% in the National Pension System, UTI has a solid presence, operating 193 touchpoints across the country. In 2023-24, its Assets Under Management grew to Rs.18.48 lakh crore, while the domestic mutual fund QAAUM reached Rs.2.91 lakh crore. Additionally, the company reported a 75% rise in consolidated profit after tax, totaling Rs.766 crore. (Source: Annual Report)
The geopolitical tensions resulted in a weak market texture globally. It is thus possible that the market may see non-directional activities in the sessions ahead. Hence, it is suggested that you keep a cautious approach and be very selective in your stock-picking decisions in the trading sessions to come.
Disclaimer Note: The securities quoted, if any, are for illustration only and are not recommendatory. This article is for education purposes only and shall not be considered as a recommendation or investment advice by Equentis – Research & Ranking. We will not be liable for any losses that may occur. Investments in the securities market are subject to market risks. Read all the related documents carefully before investing. Registration granted by SEBI, membership of BASL & the certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors.
With Donald Trump’s victory securing him a second term in the White House, many wonder how his leadership will shape global financial landscapes—especially for Indian investors.
For those following US-India trade ties, Trump’s win has implications for trade policies, market fluctuations, and investment flows. But what does this mean specifically for Indian markets and investors?
Immediate Market Response To Donald Trump Win
A Donald Trump win triggered a swift response in the Indian markets. On November 6, Indian stock indices rallied, with the Nifty climbing above 24,500 and the Sensex jumping by 900 points, closing at 80,378.13. Gains were broadly distributed, particularly in sectors like IT, realty, oil & gas, and power, which surged by over 2%.
The mid-and small-cap indices also experienced a 2% boost, outperforming the benchmark. These gains suggest optimism among Indian investors, largely due to Trump’s business-friendly policies, which may align well with India’s growth sectors.
As election results came in, Bitcoin crossed the $75,000 mark for the first time, indicating a solid rally fueled by “Donald Trump Trades.” Indian crypto exchanges such as CoinSwitch and CoinDCX reported increased trading volumes, with heightened interest linked to Trump’s endorsement of digital assets.
This shift points to rising optimism around cryptocurrency in India. It suggests that Trump’s pro-crypto stance could positively impact Indian crypto markets and investments in exchange-traded funds (ETFs) that offer exposure to digital assets. Source: Moneycontrol
Foreign Portfolio Inflows: A Renewed Focus on India
Donald Trump’s victory may also influence foreign portfolio investments (FPIs) in Indian markets. In October, FPIs shifted from net buyers to net sellers, with a sell-off of Rs 94,017 crore. However, Trump’s return could prompt renewed foreign investments in India, especially given the alignment of US-India trade interests.
With India viewed as a strategic alternative to China, a realignment of supply chains might encourage FPI inflows in technology, defense, and clean energy sectors. Both countries’ efforts to bolster mutual economic ties could drive steady capital inflows into the Indian markets, possibly reversing the recent trend of FPI outflows. Source: BusinessToday
Mutual Fund Performance and US-India Diversification
Investors in US-focused Indian mutual funds saw substantial returns in 2024, with some funds delivering gains of up to 38%. Notably, funds like the Mirae Asset NYSE FANG+ETF Fund of Funds, Mirae Asset S&P 500 Top 50 ETF, and Bandhan US Equity FoF recorded returns of 38%, 35%, and 31%, respectively. In comparison, domestic funds in India’s large, mid-, and small-cap categories posted 16%, 26%, and 25% returns, respectively.
As US-focused funds continued to outperform, Indian investors benefited from geographical diversification. Given Trump’s economic priorities, US markets could see continued stability, which would favor US-focused investments within Indian mutual funds and maintain robust returns for investors. Source: MoneyControl
Trade Relations and Manufacturing Opportunities for India
Trump’s policies, often characterized by his “America First” approach, could benefit Indian manufacturers and exporters. His plans to tighten trade restrictions on China might lead more US companies to shift manufacturing operations from China to India.
This shift could open export opportunities for Indian businesses in the machinery, textiles, and chemicals sectors as companies look to diversify their supply chains. Stronger dollar values could further boost Indian exports, particularly in telecommunications, pharmaceuticals, and automotive components. Source: MoneyControl
Strengthening India-US Trade Relations
Under Trump’s administration, India and the US have built a solid partnership grounded in mutual economic goals, technological collaboration, and trade growth. Trump’s pro-business stance could deepen this alliance with the US, already a leading investor in India across sectors like technology, infrastructure, and renewable energy.
As the demand for skilled Indian workers rises in industries pivotal to both countries, India’s role in the global digital economy could strengthen, promoting cross-border growth in tech, renewable energy, and sustainable development. Source: Livemint
Geopolitical Considerations and Global Tensions
Trump’s foreign policy, particularly regarding Ukraine and the Middle East, may have ripple effects on global markets, including India. Analysts predict that Trump could push for a ceasefire in the Ukraine conflict, potentially easing geopolitical tensions.
In the Middle East, he has been vocal in his support for Israel and Saudi Arabia, and his policy on Iran may become even more assertive. Regarding China, while continuity is expected, Trump’s trade stance remains steadfast, potentially creating indirect opportunities for Indian industries as US-China trade relations stay strained.
Currency Implications and Rupee Volatility
The Indian rupee may experience downward pressure as the US dollar strengthens under Trump’s leadership. On Wednesday, the rupee closed at a record low of 84.28 per dollar. A stronger dollar could make Indian exports more competitive and increase import costs.
To manage the rupee’s volatility, the Reserve Bank of India (RBI) has maintained a significant foreign exchange reserve of $684.8 billion as of October 25. The RBI stands ready to use these reserves to stabilize the rupee in case of any adverse impacts from global market volatility, ensuring excellent stability in the domestic currency markets. Source: Livemint
A Potential Shift in the Dollar’s Strength
Trump has often favored a weaker dollar to boost American manufacturing competitiveness. For India, a weaker dollar could reduce export profits and potentially make the country less attractive for foreign investments.
While weakening the dollar could boost US manufacturing, it poses challenges, as a weaker dollar might drive inflation. Implementing this would be complex, involving a delicate balance between inflation control and supporting American industry. Such policies may have cascading effects on Indian trade, investment, and currency stability.
Conclusion
Donald Trump’s second term in office presents Indian investors with opportunities and challenges. With potential shifts in trade policies, the strengthening of India-US relations, and volatility in currency and crypto markets, Indian investors are likely to feel the ripple effects across multiple sectors.
As markets respond to these global changes, Indian investors can expect opportunities in diversified mutual funds, sectors aligned with manufacturing and export, and sectors poised for growth as trade between the two countries deepens.
Disclaimer Note: The securities quoted, if any, are for illustration only and are not recommendatory. This article is for education purposes only and shall not be considered as a recommendation or investment advice by Equentis – Research & Ranking. We will not be liable for any losses that may occur. Investments in the securities market are subject to market risks. Read all the related documents carefully before investing. Registration granted by SEBI, membership of BASL & certification from NISM in no way guarantee the performance of the intermediary or provide any assurance of returns to investors.
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What is an Investment Advisory Firm?
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An investment advisory firm is a company that helps investors make decisions about buying and selling securities (like stocks) in exchange for a fee. They can advise clients directly or provide advisory reports and other publications about specific securities, such as high growth stock recommendations. Some firms use both methods, like Research & Ranking, India’s leading stock advisory company, specializing in smart investments and long-term stocks since 2015.
Why choose a SEBI Registered Investment Advisor?
An investment advisory firm is a company that helps investors make decisions about buying and selling securities (like stocks) in exchange for a fee. They can advise clients directly or provide advisory reports and other publications about specific securities, such as high growth stock recommendations. Some firms use both methods, like Research & Ranking, India’s leading stock advisory company, specializing in smart investments and long-term stocks since 2015.
What is the Role of an Investment/Stock Market Advisory Firm in India?
An investment advisory firm is a company that helps investors make decisions about buying and selling securities (like stocks) in exchange for a fee. They can advise clients directly or provide advisory reports and other publications about specific securities, such as high growth stock recommendations. Some firms use both methods, like Research & Ranking, India’s leading stock advisory company, specializing in smart investments and long-term stocks since 2015.
Is investment advisory the same as wealth management?
