Back To Back Positive Weeks!

Happy Party GIF by Habitat

 

Tale of the Tape 

Hola amigos. Another week draws to an end. 

Nifty and Sensex reversed a majority of yesterday’s losses to end the week in the green. PS - markets posted consecutive weekly gains for the first time since hitting the all-time high in September. Midcaps (+0.2%) and Smallcaps (+0.8%) also extended their unbeaten streak. The advance-decline ratio (3:1) favored the bulls. 

Except for Real Estate and PSU Banks, down -0.5 each, all the other sectors closed higher. Pharma (+2.4%) stocks single handedly pushed markets higher. Energy (+1.4%) and Autos (+1%) also saw healthy gains. 

This smallcap company is making big strides in the semiconductor industry. Brokerages see +40% from current levels. Check out our top story for all the details. 

Suraksha Diagnostics’ 850 cr IPO opened for subscription today. Should you invest or avoid it? Find out below. 

Adani Group stocks were up big time after Japan’s top banks including Mizuho Financial Group, Sumitomo and Mitsubishi reiterated their support for the Group. Adani Green rallied ~22%. 

Bharti Airtel (+4%) was the top gainer on Nifty after ICICI Sec upgraded the stock. They see a further +15% upside from current levels. CreditAccess Grameen (-8.5%) was the top loser on NSE500 after a double downgrade by Goldman Sachs. 

Listing gain. Enviro Infra Engineers closed at Rs 207 p/sh; +40% from its IPO price. 

Easy Trip Planners rallied +14% after the stock traded ex-date for its 1:1 bonus. 

Zee Entertainment rose +5% after shareholders rejected the reappointment of Punit Goenka as Director. 

Insurance stocks were volatile amidst reports that IRDAI may limit their use of banking channels for distribution. On a separate note, the GOI is considering a proposal to increase foreign direct investment (FDI) to 100%.

Here are the closing prints:

Nifty

24,131

+0.9%

Sensex

79,803

+1.0%

Bank Nifty

52,056

+0.3%

Stock
Betting on India’s Semiconductor Theme

Computer Technology GIF by Matthew Butler

Semiconductors are THE hottest thing in the tech and finance world currently. We know that India wants to be the global hub of electronics manufacturing which requires a ton of investment. To ease this burden, the GOI announced a $10 billion subsidy plan to manufacture and supply Make In India chips. 

There’s still a long road ahead but the good news is that we’re headed in the right direction. So what if I told you that you could profit from this mulit-year/decade opportunity by investing in the right company. 

For the unaware, Rashi Peripherals is a leading pan-India distributor of IT hardware & software products. A few years back, the company forayed into embedded and semiconductor business. They even roped in Vivek Tyagi, ex-Western Digital, to lead this vertical. The company has partnered with over 25 global technology brands and recently opened their first state-of-the-art Embedded Lab in Bengaluru. 

The company's ability to procure, design and test chips gives them an edge over peers in the semiconductor segment. Its huge investments in production and R&D have started to pay off with multiple orders from large automakers in India. PS - they also recently won a Rs 1,500 cr AI data center project from Yotta. The company is confident of achieving 50%+ growth in the semiconductor segment in the coming years albeit on a much smaller scale. 

Besides this, the company’s traditional ICT business is also firing on all cylinders. Strong demand during the festive season + expansion into distribution for quick commerce brands have driven growth. The company’s inventory days and cash conversion cycle have also improved by 10%-15% in the first six months of FY25. 

The company’s industry leadership, and strong balance sheet along with all the above factors make it a prime candidate for a re-rating, according to Monarch Capital. FYI - they have a 12-month target price of Rs 560 p/sh; +42% from current levels.

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