Market Capsule 18th August '24 | Bulls are Back
- samarwealth
- Aug 18, 2024
- 6 min read
Last week commenced with domestic stocks ended flat due to volatility from allegations against the SEBI chief, with the Sensex down 56.99 points and the Nifty 50 falling 20.50 points. On Wednesday, benchmarks modestly recovered after a two-day drop. By Friday, stocks surged for the second consecutive day, with the Sensex up 1,330.96 points and the Nifty 50 rising 397.40 points.
The IT sector performed strongly this week, with the Nifty IT Index rising 4.7%, led by major stocks such as Mphasis Ltd, L&T Technology Services Ltd, Tech Mahindra Ltd, and Coforge Ltd. Meanwhile, the Nifty Realty Index increased by 2.58%, driven by key realty stocks.
The top gainers of the week on the Nifty 50 were Tech Mahindra Ltd (up 5.22%), Wipro Ltd (up 5.08%), Infosys Ltd (up 4.98%), HCL Technologies Ltd (up 4.92%), and Tata Consultancy Services Ltd (up 4.43%).
Japanese markets surged, with the Nikkei up 3.64% to 38,062.67 and the Topix rising 2.99% to 2,678.60, boosted by a weaker yen and strong US market cues. The Nikkei rebounded from last week’s selloff due to higher Bank of Japan interest rates. Meanwhile US stocks continued their upward trend on Thursday, with the Nasdaq rising 2.3% to 17,594.50, the S&P 500 up 1.6% to 5,543.22, and the Dow increasing 1.4% to 40,563.06. Retail sales in July grew 1.0%, surpassing expectations, and initial jobless claims fell to 227,000, boosting market sentiment.
Charting the Pulse of Indices:
A) Sector Wise Performance
B) Heatmap
Heatmap helps investors quickly understand the performance of multiple stocks or sectors in a single view. Color coding, with varying shades indicating the degree of movement - red for declines, green for gains, and sometimes grey or other colors for little or no change. Heatmaps are effective for spotting market patterns and can be a time-saving resource in investment analysis.
C) Market Breadth
A) Nifty 500
Analyzing market breadth is important as it provides insight into the underlying strength or weakness of the market, beyond just looking at benchmark indices. Breadth measures the percentage of securities in NIFTY 500 surpassing specified moving averages over the specified period. Comparing the market breadth of nifty 500 during the previous week's trading sessions, we can analyze that number of stocks above key moving average support areas are reducing by the end of week. This can be considered as a sign of weakness if change is seen to be significant.
Blockbuster Results
Platinum Industries Ltd reported Q1FY25 revenues of ₹102.66 crore (up 66%), EBITDA of ₹20.47 crore (up 26%), and PAT of ₹17.74 crore (up 56%).
Morepen Laboratories Ltd reported Q1 FY25 revenues of ₹458.6 crore (up 14%), EBITDA of ₹55.1 crore (up 93%), and PAT of ₹36.2 crore (up 147%).
Eco Recycling Ltd reported Q1 FY25 revenues of ₹11.40 crore (up 112%), EBITDA of ₹10.23 crore (up 1023%), with an EBITDA margin of 76.12%, and PAT of ₹8.15 crore (up 73.04%).
Voltas Ltd reported a 46.47% YoY revenue growth to ₹4,921 crore, an OPM of 8% (up from 5%), and a 160% YoY increase in PAT to ₹335 crore.
Capacite Infraprojects Ltd reported stellar numbers with a 32.36% YoY revenue growth to ₹570 crore, an OPM of 19% Vs16% last year), and a 179% YoY increase in PAT to ₹53 crore.
Mazagon Dock Shipbuilders Ltd reported an 8.48% YoY revenue increase to ₹2,357 crore, an OPM of 27% (up from 8% last year), and a 121.6% YoY rise in PAT to ₹696 crore.
RattanIndia Enterprises Ltd reported a 97% YoY revenue growth to ₹2,494 crore, with an OPM of 41% and an 851% YoY increase in PAT to ₹378 crore.
Good Results:
Senco Gold Ltd reported a 7.5% YoY revenue growth to ₹1,403.9 crore, a 61.8% YoY increase in EBITDA to ₹108.7 crore, and an 85.4% YoY rise in PAT to ₹51.3 crore.
Subros Ltd. reported a 16.82% YoY revenue growth to ₹810 crore in Q1 FY25, with an OPM of 10% and a 150% YoY increase in PAT to ₹35 crore.
Shilchar Technologies Ltd reported a 59% YoY revenue growth to ₹106.9 crore, a 48% YoY increase in EBITDA to ₹29.50 crore, and a 46% YoY rise in PAT to ₹23.98 crore.
Hi-Tech Pipes Ltd reported a 35% YoY revenue growth to ₹866.98 crore, a 101% YoY increase in EBITDA to ₹42.69 crore, and a 125% YoY rise in PAT to ₹18.05 crore.
Doms Industries Ltd reported a 17.29% YoY revenue growth to ₹445 crore, with an OPM of 19% and a 50% YoY increase in PAT to ₹54 crore.
Turnarounds:
Nahar Spinning Mills Ltd reported a 9.61% YoY revenue growth to ₹820.88 crore, with an OPM improving to 6.24% from 1.22%, and a PAT of ₹6.64 crore compared to a loss of ₹17.51 crore.
Juniper Hotels Ltd reported a 19.11% YoY revenue growth to ₹200 crore, with an OPM of 31% and a PAT of ₹12 crore, compared to a loss of ₹11 crore.
AWFIS Space Solutions Ltd reported a 37.31% YoY revenue growth to ₹257.74 crore, with an OPM of 30.67% and a PAT of ₹2.79 crore, compared to a loss of ₹8.31 crore.
1. HBL Power Systems Ltd
2. HPL Electric & Power Ltd
3. Aurionpro Solutions Ltd
4. Thangamayil Jewellery Ltd
5. Va Tech Wabag Ltd
Corporate Developments
Order Wins:
Dee Development Engineers Ltd received a ₹338.09 crore purchase order from DOW Chemical Canada ULC. Link
Power Mech Projects Ltd received a ₹114.30 crore order for O&M of the 1200 MW Mutiara Thermal Power Plant. Link
Paras Defence and Space Technologies Ltd received a ₹305 crore order from L&T for manufacturing and supplying 244 Sight-25HD EO Systems with extended warranty and logistics support. Link
PSP Projects Ltd received work orders worth ₹653.67 crore. Link
Diamond Power Infrastructure Ltd received a ₹40.12 crore Letter of Intent from L&T Construction for supplying AL 59 Zebra Conductors. Link
Vascon Engineers Ltd. received a ₹331.38 crore Letter of Acceptance from PWD Konkan, Mumbai, for constructing a Medical College, 500-bed hospital, and ancillary buildings at Sindhudurg. Link
Bondada Engineering Limited has received an additional work order valued at ₹85 crore from M/s. Bharat Sanchar Nigam Limited (BSNL). Link
GE Power India Limited has received a purchase order of INR 47.27 crores (Excluding GST 18%) from Steag Energy Services (India) Private Limited. Link
Ashapuri Gold Ornament Ltd received work orders worth ₹105 crore. Link
Croissance Ltd received a civil construction order worth ₹50 crore. Link
JNK India Ltd received a large order from HPCL to set up a new HP TDAE Process Plant at the Mumbai Refinery on an LSTK basis. Link
DCX Systems Ltd has secured contracts/orders totaling INR 107 crore from both domestic and international customers. Link
Share Splits/Bonus Issue:
Money Masters Leasing & Finance Ltd has scheduled a stock split for 22nd August, 2024 reducing the face value of its shares from ₹10 to ₹1
Central Depository Services (India) Ltd has announced a bonus Issue with a record date set for 23rd August, 2024, to be issued in a 1:1 ratio.
Sprayking Ltd has announced a bonus Issue with a record date set for 21st August, 2024, to be issued in a 1:1 ratio
Memorandum of Agreement/Agreements:
JNK India Ltd received a major order from HPCL to set up an HP TDAE Process Plant at the Mumbai Refinery on an LSTK basis.. Link
Eco Hotels and Resorts Limited signed a deal for a group of three (3) hotels consisting of 94 rooms in Sindhudurg, Maharashtra. Link
Techno Electric & Engineering Company Ltd partners with IndiGrid for developing greenfield transmission projects Link
Block/Bulk Deals:
Brainbees Solutions Ltd: Tntbc As The Trustee Of Nomura India Stock Mother Fund (Nomura) Nismf bought 32,25,660 shares @ ₹681
Nexus Select Trust: The Vanguard Group bought 1,14,50,476 shares @ ₹138
Electronics Mart India Ltd: Sbi Mutual Fund bought 1,51,00,000 shares @ ₹230
Acquisitions & Mergers:
Ramkrishna Forgings Ltd completed the acquisition of 100% equity in Resortes Libertad S.A. de C.V., a Mexican company. Link
Sun Pharmaceutical Industries Limited has agreed to invest up to $15 million in Pharmazz Inc., acquiring over 5% equity. Link
Tata Steel Ltd acquired 115.92 crore equity shares worth ₹1,528.24 crore in T Steel Holdings Pte. Ltd, maintaining it as a wholly owned subsidiary. Link
Ambuja Cements Ltd approved the acquisition of a 100% stake in Penna Cement Industries Ltd by entering into a binding agreement. Link
Other Important News:
Urja Global Limited announces the pre-launch of its high-speed electric scooter "CHETNA," complete with HOMOLOGATION CERTIFICATE and RTO registration. Link
Great Eastern Shipping Company Limited has taken delivery of a 2013-built Medium Range Product Tanker named "Jag Priyanka." Link
Ola Electric strengthens market leadership, launches electric motorcycles and announces integration of its own cells in EVs by Q1FY26. Link
That's all for now! I hope you enjoyed the content. Do share your comments below! Disclaimer: Any stock or company discussed above should not be considered as a Buy/Sell recommendation. We personally or our clients might or might not have a position in any of the stocks discussed. This newsletter is purely is for educational purposes only.
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