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Happy Monday Everyone 😊
The market continued to rise, with the Nifty (+O.4%) and Sensex (+ 0.2%) hitting new all-time highs. Midcaps (+ 0.9%) popped off while SmallCaps (+ 0.5%) had a decent day. The advance-decline ratio was in Favour of bulls (3:2) 💪
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| NIFTY 50 CHART ANALYSIS |
Except for IT (- 0.3%), all sectors ended in the green. PSU banks (+ 3.1%), oil & gas (+2%), and real estate (+1.3%) were the top winners🔥
Zomato (+ 3%) hit an all-time high after hiking its platform fees. What explains the move? Read our top story below to find out 🔍
HCL tech rallied +5% intraday on decent Q1 numbers. Meanwhile, IREDA hit a new all-time high on a strong Q1 show. More details below 📊
Tanla platforms, Zen technologies, and JK Tyre all saw big movements.
Aurobindo Pharma (+ 4%) hit a record high after it said it would consider a share buyback plan on July 18🤑
Varun Beverages gained +3% after expanding its snack portfolio in Zimbabwe and Zambia
Order wins: Ashok Layland (+2%) was in focus after it bagged a big Rs 980 cr bus order from the Maharashtra government. Apollo Microsystems was locked in a +5% upper circuit after winning a drone system order from the Indian army.
Q1 result reactions: Bank of Maharashtra was up +6% after its net profit jumped +47% YoY. Avenue Supermarket (+1%) posted decent Q1 numbers, with Nuvama raising its target price to Rs. 5091 p/sh👍
Earning Roundup
HCL TECH rallied +5% intraday before giving up its gain after posting solid Q1 results, overall revenue and profit beat street estimates as demand slowly picked up across verticals & geographies. That said, its bottom line was boosted by a 70$ million one-time bumps in other revenue.
The company said it was on track to maintain its FY25 revenue growth guidance of 3% - 5% in constant currency terms. The only sour note was that new deal wins came in at $ 1.57 billion in Q1 (vs $ 2.29 billion QoQ).
Here are its key stats:
- Revenue: $3.36 billion; -1.9% QoQ (vs Est: $3.34 billion)
- EBIT margin: 17.1% vs 17.6 % in Q4 (vs Est: 16.7%)
- PAT: Rs. 4257 cr, + 6.8% QoQ (vs Est: 3776 cr)
Big picture: Overall results were decent but not great, just like TCS. The company's key financial services vertical declined -1.3% Yoy. American biz was up +8% YoY in constant currency terms. The more bullish analysts say that HCL's FY25 guidance doesn't take into account hopes of a rate cut in the US and a general rebound in global economic growth. Noumra raised its target price to Rs. 1720 p/sh (vs Rs 1560 p/sh earlier), +9% from current levels!
HCL tech is +6% YTD.
IREDA (+3%) reported blockbuster Q1 results. Strong power sector demand boosted loan disbursals by +68% YoY, which in turn propped up the topline. Its overall loan book came in at Rs. 63150 cr, +34% YoY. NIMs were flat but asset quality improved, helping bump up the bottom-line💰
Here is its Q4 Report Card:
- Net interest income: Rs. 508 cr, +38% YoY
- PAT: Rs. 384 cr, +30% YoY
- GNPA: 2.19% vs 2.36% QoQ
- Net NPA: 0.95% vs 0.99% QoQ
Most analysts remain bullish on the stock, but the big bear here is Philips capital which sees a -56% downside from current levels! The brokerage warns that higher exposure to the private sector could raise credit costs, put pressure on margins and ensure that earning growth doesn't keep up with the loan growth.
IREDA is up nearly 3x YTD.
CHARTBUSTERS
Here are three companies that saw big movement today!
1. Tanla Platforms rallied over 10% intraday after they signed a deal with a 'global tech major' to help curb scams on their messaging platforms by identifying fraudulent platforms phone numbers. This big boosts to tanla's AI-driven anti-phishing solution. While tanla didn't share the customer's name, some reports say the deal is with meta-owned WhatsApp! 📱
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| TANLA PLATFORMS |
2. JK TYRE rallied +13% intraday after reports said industry biggie MRF will hike prices. Why is this a big deal? Mostly because raw material costs have spiked from the start of 2024. JK Tyre and others have already announced price hikes so with MRF doing the same, nobody gets hurt. Experts say more hikes are needed in the future as they have barely kept up with cost increase.
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| JK TYRE |
3. Zen Technology hit a +5% upper circuit after it rolled out four new defence products and said it would focus on AI - powered robots! all the new launches revolved around surveillance, tracking and generally security. AI and defence are top investor buzzwords right now which explains the stock's movement! 🚀
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| ZENSAR TECHNOLOGY |
| NIFTY | 24587 | +0.4% |
| SENSEX | 80665 | +0.2% |
| BANK NIFTY | 52456 | +0.% |
