Volatility and consolidation are expected to continue in the coming week, with focus on the Federal Reserve policy meeting and global cues, in the absence of domestic cues, experts said.
During the last week, the BSE Sensex plunged more than 950 points to 58,841, and the Nifty50 fell a little more than 300 points to 17,531. The Nifty Midcap 100 index declined 1.7 percent and Smallcap 100 index slipped 1.2 percent.
Ceat | CMP: Rs 1597.25 | The stock price jumped over 15 percent after the company’s management laid out the strategic roadmap in its annual investor meet. Increasing market share across key segments and ramping up exports are some of the key focus areas for the management. The company aims to double exports revenue to Rs 3500 crore by FY26 from Rs 1800 crore in FY22. CEAT OHT tyres have been well received in Europe and are priced lower by 20-25 percent, the management said in investor meet.
Vedanta | CMP: Rs 290.75 | The share price gained 9 percent in the week gone by. The mining conglomerate and Taiwanese electronics manufacturing giant Foxconn will make one of the largest ever investments of Rs 1.54 lakh crore in setting up India’s first semiconductor plant in Gujarat. The 60:40 joint venture of Vedanta-Foxconn will set up a semiconductor fab unit, a display fab unit, and a semiconductor assembling and testing unit on a 1000-acre land in the Ahmedabad district. Also, Vedanta Resources said it plans to pump in another Rs 25,000 crore for expansion of its aluminium, ferrochrome and mining businesses in the state. Jigar Patel of Anand Rathi Shares & Stock Brokers feels that on the indicator front, daily MACD (moving average convergence and divergence) is giving bullish crossover above zero line along with daily RSI (relative strength index) is above 70 levels indicating bullish bias in said counter. Upside till Rs 355 with plausible support seen at Rs 280. One can hold (if already bought) and add (if considering fresh buy) at the current market price.
Maharashtra Scooter | CMP: Rs 5044.15 | The share price added over 8 percent after the company declared an interim dividend of Rs 100 per equity share. The board of Maharashtra Scooters on Tuesday, 13 September 2022, declared an interim dividend of Rs 100 per equity share of face value of Rs 10, for the financial year ending 31 March 2023. The company has fixed 23 September 2022 as the record date for the same. The interim dividend will be dispatched on or around Monday, 10 October 2022.
KRBL | CMP: Rs 351.85 | The scrip rose over 15 percent last week amid surge in prices and chaos in the international rice market after India banned the export of the cereal. Recently the government banned the export of broken rice and imposed a 20 percent duty on exports of non-basmati rice amid fears of a continuing rise in retail prices of the cereal. Prices have gone up on expectations of lower output of the kharif crop due to uneven distribution of the southwestern monsoon that has affected sowing.
Tata Investments | CMP: Rs 2767.10 | The stock surged 51 percent in the week gone by. Tata Investment recorded an appreciation of 38 percent in its NAV in FY22 and realised gains of Rs 430.61 crore on equity investments (post-tax) taking advantage of the buoyant markets. Going forward the performance will be dependent on how global factors, the economy and corporate earnings shape up over the second half of the year, the company said. The company aims to remain invested in leaders in sectors, which they believe have potential to remain value accretive over the medium and long term. The company further said it continues to invest for the long term while availing opportunities to realize gains to augment the operating income for dividend distribution. Tata Investment Corporation’s consolidated net profit last quarter jumped 67.05 percent to Rs 89.94 crore on 64.70 percent increase in total income to Rs 102.08 crore in Q1 June 2022 over Q1 June 2021.
HCL Tech | CMP: Rs 896.90 | The scrip slipped over 5 percent as the firm laid off 350 employees globally who were working on its client Microsoft’s news related products, signalling an increasingly tough business environment. The employees were informed about the same in a town hall last week, people familiar with the development said. “Microsoft had an issue with the quality of work. We used to monitor, curate and edit content for its news platform MSN from across countries like India, Europe and the US. They had recently automated the process as well for global news monitoring. Prior to this, two years ago, Burda Media was managing this site,” one of the employees who was laid off told Moneycontrol seeking anonymity.
Tech Mahindra | CMP: Rs 1033.20 | The stock shed over 8 percent in the week gone by. Goldman Sachs has downgraded its ratings on Tech Mahindra to ‘sell’ citing a sharp cut in dollar revenue growth forecast for the IT sector, according to media reports. The brokerage said the high share valuation of IT companies do not factor in a ‘material’ revenue growth slowdown in FY24.
Tanla Solutions | CMP: Rs 796.55 | The stock was down over 8 percent last week. The company said it will buyback 14.16 lakh or 1.04 percent of the total equity shares at a price of Rs 1,200 apiece. Tender offer route will be used to carry out the buyback process. The company will spend Rs 170 crore on the buyback. As of March 2022, Tanla’s net cash flow stood at Rs 278 crore. The company last quarter reported a sequential decline of 28.6 percent in its profit after tax (PAT) for the quarter ended June. Compared to the corresponding quarter of last year, the PAT is down 4 percent.
Dr Lal Pathlabs | CMP: Rs 2296.70 | The scrip shed over 9 percent last week. Credit Suisse has an “underperform” rating on Dr Lal and expects a downside of nearly 45 percent from its current market price. Although the diagnostic industry is expected to delivery a 10 percent Compounded Annual Growth Rate (CAGR), the brokerage is concerned over the companies’ margin profile as they spend more on customer acquisition, network expansion, digitalisation, and rationalisation of prices of non-specialized tests. “There is additional risk of higher payout structure to franchises, which poses further downside risk to margins,” the brokerage said in its note, according to CNBC-TV18 report. Credit Suisse expects the company’s Return on Capital Employed to fall to 20-25 percent over the next five years, from the current levels of 40-50 percent.
Mahindra Lifespace | CMP: Rs 460.75 | The stock was down 14 percent amid weak market conditions. Arvind Subramanian, MD & CEO, Mahindra Lifespaces is continuing to see strong end-user demand, which is driving the residential markets. “It has been a fantastic quarter two seasonally. Particularly in the Mumbai market, the quarter two tends to be softer because of the monsoons and other factors but this year we have seen a very strong growth sequentially from quarter four onwards,” Subramanian told CNBC-TV18. The realty firm is looking to acquire a few land parcels this fiscal to build housing projects with sales potential of Rs 3,000-4,000 crore, a top company official said. The company will acquire these land parcels either through outright purchase or by forming Joint Development Agreements (JDAs) with landowners.
Sandip Das
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