August 2021 Week Ending ‘21st Volume #1 Once-a-week Updates on Indices Gaining Indices Index LTP Change (%) FMCG 38596 1754 (4.8%) IT 33351 672 (2.1%) Losing Indices Index LTP Change Nifty closed on a dropping cliff (%) August as such started on a very good note for Nifty futures. It broke Metal 5335 -463 out of its range and close closed above 16000 for the first time (8.0%) creating a new ATH (All Time High) Smallcap 9850 -349 It took some days to halt but Nifty futures continued its way up creating a 100 (3.4%) new high of 16688. But on Thursday the trend halted. Nifty futures gapped Bank 35033 -1135 but closed below Wednesday high giving a setback for the bulls. And on (3.1%) Friday it seems bears unleashed their wrath from the word go. It started Auto 9904 -273 with gap down and a struggle managed to close down 138 points (-0.84%). (2.7%) It erased all the weekly gains and closed -78 points (0.5%) on weekly basis. Pharma 13711 -337 Biggest loss contributors were stock from Metals (Vedanta, Welspun, (2.4%) National Aluminium, NMDC, Jindal Steel, Sail etc.), followed by Banks Midcap 27124 -475 (IDFC First, RBL Bank, The Federal Bank, PNB, SBI etc.) and Autos 100 (1.7%) (Ashok Leyland, Bharat Forge, Tata Motors, TVS, Bosch etc.) Infrastruct 4490 -74 Some respite came from good performance by FMCG players (Hindustan ure (1.6%) Unilever, Britannia, Nestle, United Spirits etc.) and IT firms (Midtree, Nifty 13943 -121 Mphasis, TCS etc.) 500 (0.9%) With FIIs pulling lots out of cash, it might seem to be a halting point for a while for Nifty. Long trades could be found in FMCG and IT while short selling could be done in metals and Autos. FII Cash Activity (in Rs. Cr) 1 | P a g e Once-a-week Nifty 50 - Advances to Declines Advances to Declines, 32 Declines Ratio Advances, 18 0 5 10 15 20 25 30 35 Gainers Losers 20-Aug- Change 20-Aug- Change Symbol 21 Change % Symbol 21 Change % HINDUNILVR 2619.4 214.9 8.9% HINDALCO 403.65 -38.4 -8.7% BRITANNIA 3895.95 316.4 8.8% JSWSTEEL 684.6 -64.45 -8.6% BAJFINANCE 6661.1 504.55 8.2% TATAMOTORS 283.1 -24.15 -7.9% NESTLEIND 19571.25 1301.7 7.1% UPL 728.25 -50.85 -6.5% TATACONSUM 847.3 39.85 4.9% TATASTEEL 1375.6 -86.05 -5.9% BAJAJFINSV 14978.55 661.05 4.6% SBIN 406.7 -24.5 -5.7% ASIANPAINT 3112.95 124.25 4.2% COALINDIA 135.6 -8.15 -5.7% TCS 3559.5 96.1 2.8% ONGC 110.2 -5.9 -5.1% EICHERMOT 2601.65 54.85 2.2% KOTAKBANK 1703.55 -84.45 -4.7% TITAN 1876.8 38.9 2.1% LT 1593.6 -74.8 -4.5% INFY 1732.95 20.75 1.2% INDUSINDBK 979.45 -44.7 -4.4% TECHM 1399.2 16.05 1.2% BHARTIARTL 613.7 -23.35 -3.7% M&M 785.65 7 0.9% NTPC 114.15 -4.1 -3.5% WIPRO 620.05 4.55 0.7% ICICIBANK 680.7 -24.1 -3.4% HDFC 2722.05 17.9 0.7% POWERGRID 178.6 -6.15 -3.3% ULTRACEMCO 7493.35 32.65 0.4% HEROMOTOCO 2697.5 -74.7 -2.7% RELIANCE 2148.25 2.6 0.1% DIVISLAB 4818.7 -130 -2.6% BPCL 455.2 0.3 0.1% AXISBANK 740.25 -19.65 -2.6% ADANIPORTS 687.2 -16.95 -2.4% SUNPHARMA 761.15 -17.15 -2.2% Advances to Declines ratio for the MARUTI 6850.9 -151.3 -2.2% DRREDDY 4556 -96.2 -2.1% week ended stood at 0.56 which is BAJAJ-AUTO 3751.5 -74.25 -1.9% bearish in nature. Money is ITC 208.9 -2.55 -1.2% SBILIFE 1125.3 -13.3 -1.2% rotating from Autos to Pharma SHREECEM 26291.15 -309.25 -1.2% and now FMCG IOC 103.5 -1.15 -1.1% GRASIM 1484.65 -12.25 -0.8% HDFCBANK 1514.75 -11.45 -0.8% CIPLA 890.85 -3.55 -0.4% HDFCLIFE 667.85 -2.65 -0.4% HCLTECH 1117.35 -2.1 -0.2% FMCG IT Metal Auto Pharma Infra Small Cap 100 Midcap 100 Advances 13 8 0 3 2 6 14 26 Declines 2 2 15 12 8 24 86 74 2 | P a g e Once-a-week Investor activity Amount (Rs. Individual Action Stock Date Quantity Price In lakhs) Mahendra Girdharilal Sold NBI Industrial Finance 18-Aug-21 35,328 2,950 1,042 Amount (Rs. Institutional Action Stock Date Quantity Price In lakhs) Govt. of Singapore Bought Aavas Financiers 20-Aug-21 7,77,124 2,452 19,055 Goldman Sachs Bought CarTrade Tech 20-Aug-21 9,60,042 1,563 15,010 Elara India Opportunites Fund Bought Karda Construction 20-Aug-21 28,00,000 22 628 Resonance Opportunites Fund Bought Reliance Chemotex 20-Aug-21 90,000 121 109 Societe General Sold Exaaro Tiles 20-Aug-21 2,50,000 122 304 HDFC Mutual Fund Bought Aavas Financiers 20-Aug-21 4,25,000 2,453 10,423 Kuber India Fund Bought Suryoday Small Finance Bank 18-Aug-21 20,00,000 167 3,335 KKR Mauritius Sold Coffee Day 18-Aug-21 19,03,533 29 561 Elara India Opportunites Fund Bought Karda Construction 18-Aug-21 6,50,000 23 147 Govt. of Singapore Bought Aavas Financiers 18-Aug-21 31,94,786 2,450 78,270 Elara India Opportunites Fund Bought Karda Construction 17-Aug-21 9,61,340 22 207 Lotus Global Investment Bought CIL Nova Petrochemcials 16-Aug-21 9,44,117 25 232 Morgan Stanley Sold Exxaro Tiles 16-Aug-21 2,54,380 127 323 Globe Fincap Sold MPS Infotechnics 16-Aug-21 6,00,00,000 0.25 150 Birla Sunlife Mututal Bought Krsnaa Diagnostic 16-Aug-21 2,30,000 1,023 2,354 It could be observed that Govt. of Singapore is buying stake in Aavas Financiers, where FII holdings have been increasing continuously for last 9 quarters (16.57% to 32.13%). In total they have invested Rs. 973 crores in Aavas. Promoter companies Partners Group and Lake District are offloading their shares which were lapped up by a group of Sovereign Wealth Funds like Singapore and Abu Dhabi including others institutions Key Figures of Aavas Financiers Aavas Financiers (earlier known as “Au Housing in Rs. Cr 31-Mar-18 31-Mar-19 31-Mar-20 31-Mar-21 CAGR Finance Limited”) is primarily providing home Net Sales 494 710 903 1103 31% loans to customers belonging to low- and middle- EBITDA 332 522 677 829 36% Net Profit 93 176 249 289 46% income segment in semi-urban and rural area RoE 8.04% 11.79% 12.72% 12.93% Aavas does granular, secured, small ticket size RoA 2.30% 3.64% 3.75% 3.48% lending (around Rs. 8 lacs avg. ticket size #) in rural and semi-urban India with a focus on the self- employed segment. Aavas has focused on in-house sourcing # and collections with a high touch model. Aavas has been able to sustain spreads of 5%+ along with stable asset quality because of its deep presence in semi urban and rural India along with its ability to lend to customers who have no formal income proofs. Stock has generated 273% returns since its listing in Oct ‘18 3 | P a g e Once-a-week Investor activity Moreover, Elara India Fund is buying stakes in Karda Constructions where they have invested Rs. 9 crore in three different tranches. Here also FIIs stakes are up from 0.28% a year ago to 6.18% as of June 2021. Key Figures of Karda Construction Karda Construction was incorporated in 2007 in Rs. Cr 31-Mar-18 31-Mar-19 31-Mar-20 31-Mar-21 CAGR with a focus on quality and affordable Net Sales 127 105 114 121 -2% developments. It was founded by Mr. Naresh EBITDA 32 30 27 35 3% Net Profit 13 12 10 20 15% Karda in 2007. He has more than 25 years of RoE 22.96% 13.62% 9.76% 17.91% experience in construction industry. RoA 4.77% 4.28% 3.47% 6.71% Company has established its brand “Hari” for all of its projects and have won many accolades in Maharashtra. The company currently has 11 Ongoing and 3 Planned projects, which it expects to provide an estimated total Carpet Area of 17,13,725 square feet. It has a strong pipeline of Rs. 11.85 crore, of which 70% of the projects are expected to be live by 2025. It has 7 lakh sq.ft. of land reserves in Nashik district and other parts of Maharashtra. It has declared excellent first quarter results For FY22. Total income rose from Rs. 17.76 cr in 1QFY21 to Rs.20.28 cr in 1QFY22, a 14% rise. Whereas, PAT grew astronomically 252% from Rs.1.74 cr in 1QFY21 to Rs.6.14 cr in 1QFY22 Editors’ TechnoFunda Pick: Antony Waste Handling Antony Waste is one of the leading names in Municipal Solid Waste (MSW) providing a full spectrum of services, which includes collection, transportation, processing and disposal services. It has a fleet of ~1,150 vehicles out of which ~970 are fitted with GPS tracking devices.