Auto Sales in September 2021 hit by chip shortage and higher fuel prices.

by 5paisa Research Team 04/10/2021

Hopes pinned on the upcoming festive season for the industry weighed down over several months.

Hit hard by global semi-conductor shortage that disrupted production operations, several car-makers including market leader Maruti Suzuki reported lower factory-gate sales numbers in September 2021.

The country’s largest PV-maker, Maruti Suzuki India reported a drop of 57% in monthly domestic PV sales, with 63,111 units being sold in September 2021 as compared to 1,47,912 units in the same month last year, while Mahindra & Mahindra’s domestic PV sales slipped 12% YoY to 13,134 units.

On the other hand, Tata Motors bucked the trend and reported a YoY sales growth of 21% in September 2021 to 25,730 units as compared to 21,199 units last year. In the Electric Vehicle segment, the company crossed the 1,000 unit milestone for the second month in succession to register its highest ever monthly and quarterly sales of 1,078 units and 2,704 units, respectively. The company has seen a near three-fold growth in EV sales with the rising acceptance and popularity of the Nexon EV and Tigor EV.

Domestic PV Sales   

Sep-21 

Sep-20 

% change   

Maruti Suzuki   

63,111 

147,912 

-57 

Tata Motors   

25,730 

21,199 

21 

Mahindra & Mahindra   

13,134 

14,857 

-12 

The story was the same in the two-wheeler space with leading OEMs like Hero Motorcorp - which reported a fall in sales numbers for the month of September despite recording growth on a sequential basis. The domestic sales of the company reported a de-growth of 27% in September 2021 to 5,05,462 units as compared to 6,97,293 units in September 2020. Similarly, Bajaj Auto domestic two-wheeler sales stood at 173,945 units in September 2021, falling 27% over the same period last year.

TVS Motors recorded a marginal increase in domestic two-wheeler sales for September 2021 as compared to the same period last year. The company registered sales of 244,084 units in September 2021 against sales of 241,762 units in September 2020. With pandemic restrictions easing and the festive season soon approaching, it expects the retails to improve significantly in the coming months.

Domestic 2-W Sales  

Sep-21 

Sep-20 

% change  

Hero MotoCorp  

5,05,462  

6,97,293  

-27 

TVS Motor  

2,44,084  

2,41,762  

0.9 

Bajaj Auto  

173,945 

219,500 

-21 

Companies in the Commercial Vehicle (CV) space saw sales improving on a YoY basis in September 2021 on the back of a comparatively lower base last year. The sector was amongst the worst hit due to pandemic-induced economic uncertainty and revision in load-carrying norms.

The players in the CV space are now benefiting from the opening up of the economy with covid restrictions being eased. Bajaj Auto was the standout performer in this space with domestic CV sales almost doubling to 18,403 units in September 2021 as compared to 9,231 units last year.
 

Domestic CV Sales  

Sep-21 

Sep-20 

% change  

Tata Motors  

30,258 

23,211 

30 

TVS Motor  

14,645 

14,360 

1.9 

Mahindra & Mahindra  

12,449 

19,494 

-36 

Bajaj Auto  

18,403 

9,231 

99 

Ashok Leyland  

8,787 

7,835 

12 

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What is the short-term impact on the share price when Rakesh Jhunjhunwala buys them.

What is the short-term impact on the share price when Rakesh Jhunjhunwala buys them?
by 5paisa Research Team 04/10/2021

Rakesh Jhunjhunwala bought Zee Entertainment Enterprises on September 14, 2021, stock has rallied from Rs 205 to Rs 270 with an intraday gain of 39.98%.

Whenever a big bull like Rakesh Jhunjhunwala has an eye on some company people get more interested in those stocks and just buy them. But if you enter a little late you might miss the short-term rally, and will be surprised knowing the impact of his stocks bought in 2021.

There are at least four instances in 2021 where stock price rallied immediately after Rakesh Jhunjhunwala entered the stock. Here are some of them.

  • Rakesh Jhunjhunwala bought Zee Entertainment Enterprises on September 14, 2021, in a bulk deal of 50 lakh shares at an average price of Rs 220. The transaction happened between 9 am and 10 am. The interesting part of the story is the stock has rallied from Rs 205 to Rs 270 with an intraday gain of 39.98%. Now the stock is trading around Rs 300 and the return for Rakesh Jhunjhunwala from the stock is 40% in 20 days.

  • Rakesh Jhunjhunwala bought IIFL Securities Ltd on January 2, 2021, in a bulk deal of 27 lakh shares at an average price of Rs 42.8. As the news spread, the stock rallied from Rs 47 to Rs 50 within two days of the transaction, where the short term gain was 6.3%. Now the stock is trading around Rs 99.2 and the return for Rakesh Jhunjhunwala from the stock is 110% in 10 months.

  • Rakesh Jhunjhunwala bought Fortis Healthcare ltd on March 17 and 18, 2021 in a bulk deal of 1.86 crore shares at an average price of Rs. 185. Within three days of that transaction, the stock rallied from Rs 185 to 212. The short term gain was 10%. Now the stock is trading around Rs 275.60 and the return for Rakesh Jhunjhunwala from the stock is 48.5% in six months.

  • Jhunjhunwala bought Aurobindo Pharma Ltd on April 7, 2021, in a bulk deal of 16.25 lakh shares at an average price of Rs 905. And yes, it happened again, as within two days of the transaction the stock price went from Rs 905 to Rs 952. The short term gain here was 5.19%. Now the stock is trading around Rs.735 and the return for Rakesh Jhunjhunwala from the stock is -18.5% in six months.

One can, if possible, enter the stock purchased by ace investor Rakesh Jhunjhunwala on the same day, and expect outperformance in short term, going by the recent stock price behaviour.

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Five takeaways from D-Mart’s early Q2 sales data

Default Image
by 5paisa Research Team 04/10/2021

Mumbai-based Avenue Supermarts Ltd, which owns and runs retail chain D-Mart, has come up with an early set of numbers for the three months ended September 30, 2021 that showed a rosy business climate as concerns about the Covid-19 pandemic recedes in its key operating markets.

The company’s stock had hit an all-time high two weeks back and has corrected marginally since then. But the company still commands a hefty market value of Rs 2.7 trillion. At this level it is valued over 220x its trailing earnings multiple. The stock opened more than 3% above its previous close on Monday but later moderated and was trading marginally above Friday’s close.

Here are five things that one can decipher from the numbers shared by the company.

Pick-up in consumer sentiment

Consumer sentiments had taken a big hit during the pandemic. While ecommerce activities had picked up pace quickly as people were still apprehensive about going out to shop, restrictions in movement of people had affected physical shopping. Those issues are easing now.

In fact, consumer sentiment was weakening even before the pandemic hit the economy.

D-Mart’s parent Avenue Supermarts’ Q2 sales this year were over 28.5% over the pre-pandemic sales during the corresponding quarter. This shows the weak sentiment has bottomed out and withered with the pandemic and is now poised for better days.

Q2 vs Q2—best quarter ever

On a like-to-like basis, Avenue Supermarts’ standalone revenues have risen 46.6% to Rs 7,649.64 crore for the second quarter ended September 31, 2021. The company, which is promoted by Radhakishan Damani and his family, had clocked revenue from operations of Rs 5,218.15 crore in the July-September quarter a year ago. This means it has managed to stay on double-digit annual growth rate despite the pandemic over the last two years.

It is not just the highest ever Q2 sales by the company, but also the highest level ever in any three-month period, beating the previous best during the third quarter of the last financial year.

Sequential sales uptick

The company’s sequential sales rose around 46% compared to the first quarter ended June 30. The first quarter had seen consumer sentiment slump due to the brutal impact of the pandemic’s second wave, especially in North India. Expectations of a similar wave in other parts of the country had prompted consumers to restrict spending.

Store network up

D-Mart has 12% more stores now compared to the previous year as it increased the count to 246 from 220 at the end of September 2020. Last quarter alone it added eight new stores. This shows the company has been scaling up its business despite the impact of the pandemic in its home market Maharashtra, which has been the worst hit with around a fifth of the total cases in the country and accounting for a third of the deaths to date.

The company’s stores are spread across Maharashtra, Gujarat, Andhra Pradesh, Madhya Pradesh, Karnataka, Telangana, Chhattisgarh, NCR, Tamil Nadu, Punjab and Rajasthan.

D-Mart poised for bumper Diwali quarter?

Typically, the third quarter of a financial year is a big one for retailers as the country sees multiple festivals across the country. In fact, last year, despite the pandemic, the sequential growth in sales for D-Mart was over 41%.

If the company manages to see a similar high tide this year, it could be set for well over Rs 10,000 crore in sales in Q3 of 2020-22. If the suppressed demand gets unlocked this could also top the Rs 11,000-crore mark.

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Best Performing International Funds.

Best Performing International Funds.
by 5paisa Research Team 04/10/2021

Best Performing International Funds.

At the end of August 2021, international funds have a combined asset under management (AUM) of approximately Rs 26000 crore.

In the last one year there has been a fad of investing in international funds under the pretext of diversification. There are almost 45 Fund of Funds (FOF) in India that invest in international markets. At the end of August 2021, they have a combined asset under management (AUM) of approximately Rs 26000 crore. The interesting part is that in the last couple of months there has been an increase in inflows in China dedicated funds despite their bad performance. Since last October, Chinese authorities have started a regulatory crackdown in some of the tech giants of China, which has seriously impacted returns of the fund that invest in the Chinese market.

Two funds Axis Greater China Equity fund and Edelweiss Greater China Equity Off-shore Fund has seen their AUM growing tremendously in the last few months despite its net asset value (NAV) giving negative returns.

The last one month has not been very good for any international funds. Except for a couple of them, all the 39 international FOFs have given negative returns. Compare this with Nifty 50, which has given a return of 1.2% in the same period. Even in the last year the Indian equity market and funds dedicated to the Indian equity market on average have generated better returns than the international funds.

So, you can apportion some part of your portfolio towards international funds, however, the majority should go to equity dedicated funds at least for now.

In the following table, we are giving you the top 10 International FOFs based on last one year returns.

 

Funds  

Fund Manager  

AUM(in Rs. cr)  

Expense Ratio (%)  

Benchmark Index  

 NAV  (Rs)  

Return (%)1 mo  

Return (%)3 mo  

Return (%)6 mo  

Return (%)1 yr  

DSP World Energy Fund-Reg(G)  

Jay Kothari  

145.8  

2.05  

MSCI World  

16.85  

3.23  

1.59  

10.68  

49.83  

Principal Global Opportunities Fund(G)  

Rajat Jain  

37.5  

1.35  

MSCI All Country World Small Cap Index  

45.78  

-2.14  

-0.8  

6.44  

41.96  

Edelweiss US Value Equity Offshore Fund-Reg(G)  

Bhavesh Jain  

74.4  

2.38  

Russell 1000 Index  

22.48  

-1.23  

-1.6  

5.71  

34.94  

Invesco India Feeder - Invesco Pan European Equity Fund-Reg(G)  

Neelesh Dhamnaskar  

27.9  

0.67  

MSCI Europe Index (Total Return Net)  

12.88  

-4.14  

-3.06  

3.5  

33.84  

Invesco India Feeder - Invesco Global Equity Income Fund(G)  

Neelesh Dhamnaskar  

10  

1.14  

MSCI World Index-Net Dividend  

16.88  

-3.57  

-3.19  

4.41  

32.54  

Edelweiss US Technology Equity FOF-Reg(G)  

Bhavesh Jain  

1888  

2.35  

Russell 1000 Equal Weighted Technology Index  

18.73  

-4.1  

-3.22  

3.69  

30.85  

DSP US Flexible Equity Fund-Reg(G)  

Laukik Bagwe  

604.2  

2.47  

Russell 1000 Index  

39.49  

-1.48  

-0.53  

7.49  

30.82  

Edelweiss Eur Dynamic Equity Off-shr Fund-Reg(G)  

Bhavesh Jain  

110.9  

2.37  

MSCI Europe Index (Total Return Net)  

14.92  

-4.35  

-3.37  

3.91  

30.73  

Aditya Birla SL Global Excellence Equity FoF(G)  

Vinod Narayan Bhat  

119.9  

1.32  

MSCI World  

22.8  

-5.39  

-0.79  

11.95  

28.5  

Motilal Oswal Nasdaq 100 FOF-Reg(G)  

Swapnil P Mayekar  

3631.5  

0.5  

Nasdaq-100  

22.74  

-4.92  

-0.01  

12.43  

28.19  

 

 

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These stocks are likely to be in focus on October 5.

Stocks in Focus on October 5.
by 5paisa Research Team 04/10/2021

Benchmark indices, Sensex and Nifty have ended with a gain of 0.91% each after trading in red for the previous four consecutive trading sessions.

Except for consumer durables, all the sectoral indices ended in green, with realty, metal and power sectors catching the limelight. In the broader markets, the BSE Midcap and BSE Smallcap indices gained 1.51% and 1.71%, respectively. 

Following stocks are likely to be in focus on Tuesday:

NTPC - The share price of the company has touched a fresh 52-week high of Rs 145.75, rising 4% on the back of the company's plan to list its subsidiaries by March 2024. The subsidiaries are NTPC Renewable Energy Ltd (NTPC REL), North Eastern focused 100% subsidiary of NTPC (NEEPCO) and NVVN.

Max Healthcare Institute - Max Healthcare Institute is further expanding its presence and bed capacity in the NCR region by the addition of two hospitals of approximate 500 beds each in Gurugram. The hospitals, once operational, will also cater to the economically weaker section of the society at concessional rates.
 

Metal Stocks - The BSE Metal Index has gained 2.26% in Monday's trading session outperforming the benchmark indices. National Aluminium Company, SAIL, Hindalco, Vedanta and Jindal Steel were the top-performing stocks within the index. Metal stocks are likely to be in focus on Tuesday.

52-week high stocks - The stocks of National Aluminium Company, SAIL, Hindalco, Vedanta and Jindal Steel have hit their 52-week high prices in the initial trading session of the week. They are likely to be in focus on Tuesday.

Bullish Stochastic Crossover: Maharashtra Seamless, HEG, Solar Industries and Aarti Industries gained 13%, 12.21%, 11.13% and 8.70% respectively on Monday. A bullish stochastic crossover was seen in these counters in Monday's trading session. These outperforming stocks may trade with a bullish bias on Tuesday.

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These stocks see huge volume burst in the last leg of the trading session!

These stocks see huge volume burst in the last leg of the trading session!
by 5paisa Research Team 04/10/2021

These stocks see huge volume burst in the last leg of the trading session!

Valiant Organics, GNFC, Navin Fluorine, Laxmi Organic has witnessed volume burst in the last 75-minutes of trade.

As the saying goes, the first and the last hour of each trading session is the most important and active in terms of price and volume. More so, the activity in the last hour is said to be of utmost importance because most of the pro traders and institutions are active at this time. Hence, when a stock sees a good spike in volume in the last leg of trade along with price rise it is said to be the pro and institutions have a keen interest in the stock. Market participants should keep a close watch on these stocks as they can witness good momentum in the short-medium term.

So, based on this principle we have shortlisted four stocks, which have witnessed volume burst in the last leg of trade along with price rise.

Valiant Organics: The stock of Valiant Organics jumped nearly 7% and settled near the day’s high. However, the most striking fact is that the stock has witnessed a majority of the volume activity in the last 75-minutes of the trading session. Total traded volume for the trading session was nearly 1.57 lakh and 60% of the volume activity was seen in the last 75-minutes of trading. Furthermore, the price too witnessed a sharp spike in the last 75-minutes, which indicates that there was a lot of interest seen in the stock. Hence, market participants can keep a close on this stock.  

Gujarat Narmada Valley Fertilizers and Chemicals (GNFC): The stock hit a fresh 52-week high on Monday as it surged 7%. The stock witnessed volume burst in the last 75-minutes of trade along with price rise. The stock has witnessed nearly 45% volume of the day in the last 75-minutes of trade. Keep a watch on this stock. 

Navin Fluorine International: The stock has witnessed a faster retracement as it has retraced 78.6% of down-move which took almost five days in just two trading sessions. Furthermore, the stock has formed a higher-high and higher low as compared to its previous trading session bar. The stock has witnessed a price and volume spurt in the last 75-minutes of the trading session. A little over 50% of the volumes were recorded in the last 75-minutes. Considering the robust volume and price activity witnessed in the last 75-minutes of trade, don’t miss out on this stock.

Laxmi Organic Industries: The stock was locked at a 5% upper circuit limit on Monday. The stock had witnessed price rise along with volume burst in the last 75-minutes of the trading session. As 40% of the volume activity was seen in the last 75-minutes of the trading session, don’t turn a blind eye to this stock.