Nifty 17026.45 (-2.91%)
Sensex 57107.15 (-2.87%)
Nifty Bank 36025.5 (-3.58%)
Nifty IT 34606.1 (-1.97%)
Nifty Financial Services 17614.7 (-3.56%)
Adani Ports 717.15 (-5.94%)
Asian Paints 3143.10 (-0.04%)
Axis Bank 661.75 (-2.67%)
B P C L 376.85 (-5.81%)
Bajaj Auto 3334.60 (-1.68%)
Bajaj Finance 6807.05 (-4.47%)
Bajaj Finserv 16682.55 (-3.95%)
Bharti Airtel 738.75 (-3.45%)
Britannia Inds. 3555.30 (-0.51%)
Cipla 966.70 (7.42%)
Coal India 155.90 (-1.67%)
Divis Lab. 4937.80 (2.88%)
Dr Reddys Labs 4750.90 (3.47%)
Eicher Motors 2433.90 (-3.43%)
Grasim Inds 1690.10 (-4.34%)
H D F C 2741.70 (-4.40%)
HCL Technologies 1110.05 (-1.31%)
HDFC Bank 1489.90 (-2.36%)
HDFC Life Insur. 670.65 (-2.64%)
Hero Motocorp 2529.40 (-2.52%)
Hind. Unilever 2335.10 (-0.59%)
Hindalco Inds. 417.00 (-6.72%)
I O C L 120.95 (-3.74%)
ICICI Bank 722.20 (-3.84%)
IndusInd Bank 901.80 (-5.99%)
Infosys 1691.65 (-1.79%)
ITC 224.00 (-3.16%)
JSW Steel 628.65 (-7.67%)
Kotak Mah. Bank 1964.30 (-3.48%)
Larsen & Toubro 1778.15 (-3.88%)
M & M 853.75 (-4.20%)
Maruti Suzuki 7170.50 (-5.31%)
Nestle India 19222.25 (0.23%)
NTPC 128.85 (-4.70%)
O N G C 147.10 (-5.16%)
Power Grid Corpn 202.00 (-1.10%)
Reliance Industr 2412.60 (-3.22%)
SBI Life Insuran 1130.35 (-2.51%)
Shree Cement 25945.80 (-2.72%)
St Bk of India 470.50 (-4.09%)
Sun Pharma.Inds. 767.30 (-1.99%)
Tata Consumer 766.70 (-5.09%)
Tata Motors 460.20 (-6.61%)
Tata Steel 1112.30 (-5.23%)
TCS 3446.85 (0.03%)
Tech Mahindra 1527.40 (-2.05%)
Titan Company 2292.30 (-4.40%)
UltraTech Cem. 7394.75 (-2.81%)
UPL 703.80 (-3.23%)
Wipro 621.45 (-2.40%)

Penny Stock Update: These stocks gained up to 7.56% on Thursday

Penny Stock Update: These stocks gained up to 7.56% on Thursday
by 5paisa Research Team 21/10/2021

The equity market continued its downward trend for the third day in a row. BSE Enhanced Value Index is the top gainer while BSE SME IPO is the top loser in today’s trade.

After the Indian market closed in red for two days in sequence, on Thursday (21st October 2021) market became even more volatile and closed in red. In today’s trade, most of the sectoral indices closed in negative whereas, while some managed to stay positive. This is the third-day Nifty 50 and BSE Sensex has closed with the red mark.  In today’s session, they are down by 88.50 points i.e.,0.48% and 336.46 points i.e., 0.55% respectively.

Stocks that dragged the Nifty 50 down are Reliance, Infosys, TCS, Asian Paints and Adani Ports. Likewise, stocks dragging the SENSEX were Reliance, Infosys, Asian Paints, TCS and HCL Tech.

On Thursday, S&P BSE Enhanced Value Index and S&P PSE Finance were top gainers. Enhanced Value Index stocks such as Union Bank, Tata Motors, Punjab National Bank, Bank of Baroda and Grasim Industries closed with a green mark. Shares of Union Bank and Tata Motors were up by 6.19% and 4.30% respectively.

The losers in today’s trade were from S&P BSE TECk, Metal and Telecom index. They closed 2% below their previous close. SME IPO and TECk dropped down by 194.92 points i.e., 2.84% and 340.42 points i.e., 2.14% respectively. On Wednesday’s trade the Telecom index closed positive but in today’s trade slipped down by 1.81%.

Besides the main index constituents, stocks from SME IPO saw a deep cut. Stocks such as Goblin India Ltd, Billwin Industries Ltd, Gian Life Care Ltd and Gensol Engineering Ltd were top losers dragging the index down in red mark. Goblin India Ltd and Billwin Industries Ltd closed down by 13.03% and 7.09% respectively in the Thursday trading session.

Here is the list of penny stock that gained up to 8% on a closing basis on Thursday 21st October 2021:

Sr No.   

Stock   

LTP    

Price Gain%   

1.   

Consolidated Construction Consortium Ltd  

0.70  

7.69%  

2.   

Visagar Polytex Ltd  

0.80  

6.67%  

3.   

Zenith Steel Pipes & Industries Ltd  

1.00  

5.26%  

4.   

C & C Constructions Limited  

3.15  

5.00%  

5.   

Digjam Ltd  

19.95  

5.00%  

6.   

Gayatri Highways Ltd  

1.05  

5.00%  

7.   

National Steel and Agro Industries Ltd  

6.3  

5.00%  

8.   

Vikas Lifecare Ltd  

4.20  

5.00%  

9.   

Indowind Energy Limited  

9.50  

4.97%  

10.   

Visa Steel Limited  

15.58  

4.97%  

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Indian Hotels Q2 loss shrinks, revenue more than doubles as pandemic wanes

by 5paisa Research Team 21/10/2021

Indian Hotels Co. Ltd on Thursday reported a revival in its fortunes as second-quarter losses declined significantly from the previous three months, when the second wave of the coronavirus pandemic had jolted its business.

The Tata Group company that operates the Taj hotel chain reported a consolidated loss slightly in excess of Rs 130 crore for the quarter ended September 30. This is a significant improvement over the April-June period when it had lost Rs 301.5 crore on a consolidated basis. 

In fact, this was a massive improvement even over the same period last year when Indian Hotels lost Rs 252 crore on a consolidated basis, as the country went into a nationwide lockdown in the wake of the first wave of the pandemic. 

In the three months ended September, Indian Hotels clocked consolidated revenue of Rs 752.28 crore as against just Rs 370.3 crore in the previous three months and Rs 323.54 crore a year earlier. 

These improved numbers come even as Indian Hotels’ subsidiary Roots Corporation, which runs the budget chain Ginger Hotels, is reportedly set to float an initial public offering. 

Indian Hotels Q2: Other highlights

1) Indian Hotels clocked a consolidated loss of Rs 432 crore for April-September as against Rs 564 crore a year earlier.

2) Its board approved a rights issue and a qualified institutional placement of Rs 2,000 crore each.

3) Indian Hotels will acquire a 39.84% stake in Roots Corp for Rs 500 crore and make it a wholly owned subsidiary.

4) It will buy the stake from Omega TC Holdings Pte Ltd, Tata Capital Ltd, Tata Investment Corporation and Piem Hotels.

Indian Hotels management commentary

Indian Hotels said its business has been impacted during the half-year period on account of COVID-19. The company said it witnessed softer revenue during the first quarter due to the second wave of COVID-19 and consequent lockdowns in several states in India. However, as the lockdowns were lifted, it saw demand coming back. 

The management of the company said that it has secured additional financing for the next 12 months to prevent disruption of the operating cash flows and to enable it to meet its debts and obligations.

Puneet Chhatwal, Managing Director and CEO at IHCL, said that overall recovery has been stronger and quicker after the second wave.

“IHCL has seen significant improvement in performance quarter on quarter and the revenues grew by 132% over Q2 last year. The company has delivered a positive EBITDA of Rs 97 crore in this quarter,” he said.

Chhatwal also said that the fundraise of Rs 4,000 crore will enable it to be a zero-debt company in the future and help fund the company’s expansion as well as its capital expenditure plans.

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JSW Steel smashes Q2 earnings, revenue growth estimates

by 5paisa Research Team 21/10/2021

JSW Steel Ltd on Thursday came out with strong quarterly results that beat estimates for both profit and revenue growth on the back of robust demand and sales of value-added and special products.

The largest domestic steel producer in India reported a consolidated net profit of Rs 7,179 crore for the July-September period, up four-and-a-half times from Rs 1,595 crore in the quarter ended September 2020.

On a sequential basis, consolidated net profit rose 21.6% from Rs 5,900 crore in the three months ended June 30.

The billionaire Sajjan Jindal-led steelmaker’s consolidated revenue rocketed 68.7% year-on-year to Rs 32,503 crore and increased 12.5% sequentially.

However, the company’s stock price declined 1.74% to close at Rs 673.45 apiece in a weak Mumbai market on Thursday. The results were declared after trading stopped for the day.

Analysts were expecting profit to be around Rs 6,500 crore or less and revenue to be under Rs 32,000 crore.

JSW Steel Q2: Other highlights

1) Crude steel production at standalone level stood at 4.1 million tonnes.

2) Average capacity utilization was 91% for the quarter, similar to Q1 FY22, mainly due to planned shutdowns.

3) On a year-on-year basis, steel production rose 6%.

4) Sales of saleable steel were 3.79 million tonnes, up 5% sequentially, as Q1 was impacted by Covid-19.

5) Exports increased by 26% sequentially as domestic demand was subdued due to monsoon.

6) Operating EBITDA was Rs 8,673 crore, lower by 8.6% QoQ but up 108% year-on-year.

JSW Steel commentary, outlook

The company said quarterly sales were affected by inventory build-up due to start of its new downstream facilities and increase in inventories at ports.

JSW Steel’s EBITDA margin for Q2 was 31%. This is lower than the first quarter primarily due to elevated prices of iron ore, coking coal and other key inputs like power, natural gas and ferroalloys. 

Demand from automobile companies remained subdued due to a shortage of chips. However, JSW said construction and infrastructure activities are likely to gain momentum in the second half of the current fiscal (October-March).

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Lodha firm Macrotech Developers swings to Q2 profit even as stock corrects

by 5paisa Research Team 21/10/2021

Macrotech Developers Ltd, part of Mumbai-based Lodha Group, swung to a consolidated net profit for the second quarter as a more than two-fold jump in revenue outpaced the increase in expenses.

The company said it posted a net profit of Rs 223.36 crore for the July-September quarter, compared with a loss of Rs 362.58 crore a year earlier.

Consolidated revenue from operations jumped to almost Rs 2,124 crore from Rs 901 crore in the corresponding quarter last year.

However, the company’s shares ended 1.7% down at Rs 1,030.35 apiece on the BSE in a weak Mumbai market. The stock has fallen 16% over the past five sessions from a peak of Rs 1,225 apiece last week.

Still, Macrotech shares are more than double the price of Rs 486 apiece at which the company floated its initial public offering in April this year.

The company has a market capitalisation of Rs 46,089.44 crore, making it the third-largest listed developer in India after DLF Ltd and Godrej Properties Ltd.

Macrotech Developers Q2: Other highlights

1) The company’s total expenses jumped to Rs 1.906.64 crore from Rs 1,075.30 crore a year earlier.

2) Projects costs soared to Rs 1,432 crore from Rs 650 crore a year earlier.

3) Macrotech’s finance costs halved to Rs 156 crore from Rs 310 crore as it used most of the money raised in the IPO to cut debt.

4) Macrotech had raised net proceeds of Rs 2,407.7 crore in the IPO and used Rs 1,500 crore to pay off loans.

Macrotech Developers commentary

The company said that the outbreak of the COVID-19 pandemic caused a slowdown in economic activity and that its operations slowed due to lockdowns announced by authorities to control the pandemic.

However, its operations as well as economic activities have gradually resumed with requisite precautions.

The company said it continues to monitor the situation but added that the actual impact of Covid-19 on its future operations remains uncertain and will depend on the spread of the pandemic.

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L&TI Q2- Price target of Rs.6620 with strong growth prediction of 24% expected

by 5paisa Research Team 21/10/2021

Growth of the different verticals

Larsen & Toubro Infotech’s key players are its three verticals- BFSI (47% of revenue), Manufacturing (16% of revenue) and Hitech (13% of revenue). Lets talk about the highest revenue earning vertical first. The BFSI vertical grew in all the regions and had a 28% YoY growth. It performed better than all the other companies in the same sector proving to be a vertical that the company can instill full confidence in. According to LTI, its digital offerings are the key reason that the vertical has grown more compared to its peers.

Manufacturing, the second highest revenue earner also had quiet a good quarter with 21% YoY growth in all the sub- sectors. According to the management, there are strong deals being entered into by the vertical which will further ensure sustainable growth in this vertical.

The Hi tech vertical has been one of the top three sectors to come out of the pandemic with flying colours due to the post pandemic flurry of tech spending. It grew by 44.9% YoY. Same as the other sectors, the growth is expected to sustain.

The demand in the retail sector in LTI has been mostly driven by the United States and grew by only 6% YoY.

 

Capital and productivity in the Q2

The company’s hiring for this quarter is at a 4 year high as the revenue growth had increased. 4,084 people have been hired in the second quarter of FY22. Due to the higher amount of people hired, the utilization fell from 83.7% in Q1 FY22 to 81.6% in Q2 FY22. The company has decided to increase the amount of freshers by 1000. Two wage hikes have been given to the employees. According to the employees, the production is assumed to remain stable as the ratios have stabilized now and a price increase is estimated over a medium term.

 

From the client’s perspective

The new client addition has increased has been increasing over the last two quarters and has been steady throughout the year. In the $10mn+ tranche of clients the number has increased from 15 to 43 and in the $20mn+ tranche, the number has increased by 3 and lastly, in the $50mn+ tranche, the number increased by 1. The Revenue per client has increased by 11% in Q2FY22.

 

Financial

The revenue of Q2 FY22 saw an increase of 7.9% QoQ and 25.8% YoY as it increased from Rs.405 million in Q2 FY21 to Rs.509 million in Q2 FY22. The Net profit fell by 10% YoY in this quarter from Rs.248 crore in Q2 FY21 to Rs.223 crore in Q2 FY22. This can be attributed to the fall in Interest income to Rs.2903 crore (12% YoY).

Q2 FY22 saw the highest disbursement in rural finance at Rs.4987 crore which is 51% higher than from the Q1 FY22. EBITDA value grew by 7% QoQ during this quarter but in YoY, the EBITDA value fell by 340bps. As soon as the supply side betters and becomes more manageable, the growth of EBITDA is assumed to be as high as the growth of the revenue.

 

Projections by analysts

A revenue growth of 24% in FY22 and 20% in FY23 has been estimated by the analysts. This growth in revenue will help the company offset the high amount of hiring taken up in this quarter. A medley of changes has been estimated to occur in the EBIT margin which touched 19.3% in FY21 and its projected to come down to 17.5% in FY22 and rise to 18.3% in FY23.

The price target has been set at Rs.6620 and a HOLD recommendation has been issued by the analysts.

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Chart Busters: Top trading set-ups to watch out for Friday

Chart Busters: Top trading set-ups to watch out for Friday
by 5paisa Research Team 22/10/2021

The benchmark index, Nifty has continued its downward journey for the third consecutive day. However, the index has taken support at the 13-day EMA level and recovered almost 130 points from the days low. The index has closed at the 18178.10 level with a loss of 88.50 points or 0.48%. The banking benchmark index, Bank Nifty has gained 512 points or 1.30%. From the daily low, the Bank Nifty has recovered almost 602 points and ended above the 40000 mark for the first time. Among the constituents of Bank Nifty, the Kotak Mahindra Bank and RBL Bank were top gainers.

Here are the top trading set-ups to watch out for Friday.  

Kotak Mahindra Bank: After registering the high of Rs 2077.80, the stock has witnessed minor throwback along with low volume. The throwback was halted near the 38.2% Fibonacci retracement level of its prior upward move (Rs 1688.90-Rs 2077.80). On Thursday, the stock has given a cup like pattern breakout. The depth of the cup pattern is 7% and its length is 15 trading sessions. Further, this breakout was supported by a robust volume of more than double of 50-days average volume, indicating strong buying interest by market participants. All the moving averages based on trade set-ups are showing a bullish strength in the stock. Daryl Guppy’s multiple moving averages is suggesting a bullish strength in the stock. The stock is trading above all the 12 short and long term moving averages. The averages are all trending up, and they are in a sequence. Interestingly, the leading indicator, 14-period daily RSI has taken support near the 60 zone, and bounced back sharply. This indicates a super bullish range shift as per the RSI range shift rules. The ADX is reasonably good at 22.15 levels. The +DI is above the -DI and ADX shows strength in the trend. Technically, all the factors are currently aligned in support of the bulls. Hence, we would advise the traders to be with a bullish bias. As per the measure rule of the cup pattern, the upside target is placed at Rs 2230 level. While on the downside, the 20-day EMA is likely to provide the cushion in case of any immediate decline. The 20-day EMA is currently placed at the Rs 1997 level.

Jindal Worldwide: Majorly, the stock is displaying a bullish trend as it is marking the sequence of higher tops and higher bottoms on the daily chart. Further, it is trading above its short and long-term moving averages. These averages are edging higher, which is a bullish sign. After registering the high of Rs 121.90, the stock has witnessed minor correction, which is halted near the 20-day EMA level. On Thursday, the stock has given a 9-days consolidation breakout on the daily chart. This breakout was supported by above 50-days average volume. The momentum indicators and oscillators are also suggesting further bullish momentum in the stock. The leading indicator, 14-period daily RSI is in the super bullish zone and it has given bullish crossover on Thursday. The daily MACD stays bullish as it is trading above its zero line and signal line. The MACD histogram is suggesting further bullish momentum. The stock is clearly on uptrend and trend strength is extremely high. The Average Directional Index (ADX), which shows trend strength, is as high as 56.16 on a daily chart and 45.36 on a weekly chart. Generally above 25 levels is considered as a strong trend. In both time frames, the stock is meeting the criteria. Based on the above observations, we expect the stock to continue its upward movement and test levels of Rs 133.60 followed by Rs 140 in the medium term. On the downside, the 13-day EMA is likely to act as strong support for the stock.

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