Tale of the Tape 

Howdy folks!

Nifty (-0.4%) and Sensex (-0.3%) were back in the red after Israel and Iran exchanged deadly attacks for a 5th straight day. Midcaps and Smallcaps saw deeper cuts; down -0.7% each. The advance-decline ratio ended in favor of the bears (4:1). 

Except IT (+0.7%), all other sectors ended in the red. Pharma (-1.9%) led today’s losses after Trump said tariffs would be rolled out soon. Metals (-1.4%) and Oil & Gas (-0.7%) were hit by selling pressure too.

Ambit Capital sees a +40% upside in this construction stock. Read our top story below to find out more.

Arisinfra Solutions IPO kicks off tomorrow. Check out our analysis below to help you decide whether to subscribe.

Zee Entertainment, Happiest Minds and Vishal Mega Mart saw big swings today. Take a look at their charts below to find out why.

Hindustan Zinc cracked -5% after announcing a massive Rs 12,000-cr investment plan to boost its refined metal capacity.

Hyundai Motor India was in focus after finally starting PV engine production at its Talegaon plant.

Godrej Properties (+1%) acquired land in Pune with Rs 3,100-cr revenue potential.

Shipping Corporation of India (-8%) was the top NSE 500 loser after investors booked profits. PS - the stock is still up +15% over the last month.

Axiscades Technologies hit a +5% upper circuit after inking an MoU with a big European client.

Stock
Pullin’ In The Dough

Interarch Building Solutions has been on FIRE! The stock is up +78% in the past year completely ignoring the broader market blues. We know what you’re thinking: is it too late to join the party? Here’s what experts say.

For the unaware: the company is a top 3 player in the ‘pre-engineered buildings’ (PEB) space that caters to manufacturing & construction clients. Its PAT has grown at a whopping 40% CAGR over the last decade mostly due to large order wins. Its current average contract size is >2.5x the pre-Covid orders. Fun fact: it recently won the largest-ever PEB order in India from a tyre manufacturer in Gujarat.

What’s popping? Well, Interarch is heavily investing in a two-pronged growth strategy. First, getting into ‘sunrise’ industries -- aka clean energy, batteries and semiconductors. These require a different product fit and dedicated capacity. Secondly, it’s looking at expanding its own core offerings; for example foraying into multi-story or ‘heavy’ building structures. FYI - it’s spent Rs 120 cr in the last two years to beef up capacity in its Andhra and new Gujarat facility just for this. All of this is why experts are predicting a 21% CAGR jump in profit over the next three years.

The big question though: after its recent rally, how much of this is already priced in? Ambit Capital says its premium valuations are justified given superior growth, short-cycle order execution and low construction risks.

TL;DR: Interarch is setting up for a new wave of growth which may justify its premium price tag. That said, watch out for key negative triggers including volatile raw material (steel) prices. Ambit sees a +40% upside over the next two years.

Specials
BSE - Wait or Invest?

After a +3x in the last 1 year, BSE is a stock that everyone has an eye on. But, does it have room for further upside from current levels? Check out our latest video where we cover the company’s fundamentals, technicals, brokerage ratings and SEBI RA views in ~5 mins.