Tale of the Tape 

Happy Friday everyone! 🍻

Nifty (+0.7%) and Sensex (+0.8%) pulled back sharply after opening gap-down to end their 4-day losing streak. However, Midcaps (-0.6%) and Smallcaps (-0.1%) failed to replicate the same performance. The advance-decline ratio was in favour of the bears (3:2). 📉

It was an even mix of red and green across sectors. Real Estate (-0.7%), Pharma (-0.6%) and IT (-0.4%) witnessed selling pressure. On the other hand, Banks (+1%), and Metals (+1%) were the key sources of strength. 💪

Infosys’ weak Q4 results spoiled hopes of an IT recovery. Meanwhile, Bajaj Auto was the top Nifty loser despite RECORD Q4 numbers. More details below. 📊

Looking for a safe haven amid all this volatility? Read our top story below to see which stocks pay out the most dividends. 🤑

Motilal Oswal Financial Services (+7%) will consider issuing bonus shares on April 26. ✌️

Aurionpro Solutions was locked in a +5% upper circuit after acquiring a majority stake in an AI firm for Rs 135 cr. 🤖

Indus Towers (+2%) ended higher after Nuvama said it could see $229 million in inflows if included in the MSCI Emerging Markets Index. 💰

Sun Pharma Advanced Research was locked in a -5% lower circuit for the sixth day in a row! PS - it halted a key Parkinson’s drug trial last week. 💊

Canara Bank was in focus after it set May 15 as the record date for its 1:5 stock split. ✂️

Here are the closing prints: 

Earnings
Earnings Roundup

Bajaj Auto posted a solid set of Q4 numbers that beat Street estimates! Strong double-digit domestic volume growth helped boost the topline. Higher sales of premium motorcycles, price hikes AND lower input costs aided margins & profitability. FYI - On the EV front, Bajaj also reported its HIGHEST-EVER quarterly sales for the Chetak scooter. Also, its Triumph motorcycle volumes expanded to 18.8k units, most of which went for export. 🏍️

If results were good, why did the stock slip -3% and end up being the top Nifty loser? While  three brokerages have upped their target price, there are a few analysts who believe the stock is overvalued. They also feel a lot of the positives are already priced in. ICYMI - Bajaj Auto has more than DOUBLED in the last year, the second-best performing Nifty stock after Tata Motors. 🔥

Here is its Q4 report card:

• Revenue: Rs 11,485 cr; +29% YoY (vs Est: Rs 11,118 cr)

• EBITDA: Rs 2,307 cr; +34% YoY (vs Est: Rs 2,211 cr)

• EBITDA Margin: 20.1% vs 19.3%

• Profit: Rs 1,936 cr; +35% YoY (vs Est:1,870

Big Picture: The domestic picture looks good after a somewhat sluggish 2023. But EVs could take a blow with the lack of subsidies and exports still haven’t recovered. With pricey valuations, analysts say it’s tough to see where Bajaj Auto stock goes from here. 👀

Bajaj Auto is +106% over the last year.

Infosys (-1%) Q4 results missed Street estimates on most counts. Key business verticals like financial services saw a -8% YoY drop, while the North American market (its biggest) saw a -2% YoY decline. Europe was the only bright spot (+6% YoY revenue), but it wasn’t enough to turn the tide. 😣

FYI - the company’s headcount for FY24 also declined by over 25,000 people, the first such drop in over TWENTY YEARS.  Finally, don’t be fooled by the jump in profit. Operating margins were FLAT, so the bottom line bump is due to one-offs ( other income + interest on a tax refund). 🔍

Here are its Q4 stats:

• Revenue: $4.56 billion; -2.1% QoQ (vs Est: $4.7 billion) 

• Net Profit: Rs 7,969 cr; +30% YoY (vs Est: Rs 6,180

Big Picture: CEO Salil Parekh tried to put a positive spin on it, pointing out that the ‘total contract value’ in FY24 was its highest ever at $17.7 billion. The problem is that deal wins no longer are translating into revenue in a tough demand environment. The proof of the pudding is in Infosys’s FY25 revenue guidance which is just 1%-3% in constant currency terms. 👎

FYI - as with most things these days, analysts are divided. The most bullish upside projection is +24% from current levels (Morgan Stanley), while the most bearish is a -18% downside (Macquarie). 🤼

Infosys is down -9% YTD.

Specials

4 Multibagger Stocks To Buy - By Jefferies

Are you on the lookout for multibagger stocks to invest in? Don't worry, we've got you covered!

In our recent video, we delve into four multibagger stock picks by Jefferies. With detailed reasoning on why one might consider investing in each of these stocks, we also share their respective targets and much more. Watch the video to learn more.

Stocks

Moneyball

The Middle East is on fire, oil prices are jumping and nobody knows what will happen with interest rates. These are crazy times and markets are volatile AF. If you’re looking for a safe haven, don’t worry we got you covered. And no, we aren’t talking about gold but tried and tested dividend-paying stocks. Here’s the top three for the last 12 months: 💸

1) Vedanta: An all-time market favourite for paying out dividends. Not because founder Anil Agarwal loves his shareholders, but because he needs to repay debt. Vedanta’s dividend yield was a whopping 26.84% over the last year. Fun fact: the second biggest dividend payer is also a Vedanta firm (Hindustan Zinc, 18.7% yield). So, will the payouts continue to flow? Yes at the very least until the firm’s big demerger exercise gets over. That’s set for December 2024, but let’s be real, these things take time. ⏳

2) Coal India: The stock has historically underperformed, but it’s always paid out solid dividends. FYI - in the last 12 months, its dividend yield was 5.35%. Experts say you can depend on Coal India to keep churning out dividends; there’s nothing to suggest it will stop soon. And the cherry on top is that the stock is finally doing well as India’s power demand surges! ⚡

3) Gujarat State Fertilizers & Chemicals: No surprise that a Gujarat PSU is pretty high up on the list with a dividend yield of 4.41%. ICYMI - last year, the state govt mandated that all PSUs must pay shareholders a MINIMUM dividend of at least 30% PAT or 5% of their net worth. This has been great for minority shareholders and we’ve seen the immediate benefits over the last year. 😇

Charts

Movers and Shakers

Here’s a look at this week’s top NSE500 movers. Elecon Engineering took the pole position after rallying +20%. 🥇 Just Dial (+19%) hit the highest level since July 2021. Sun Pharma Advanced (-19%) closed down for a second straight week. Max Healthcare (-11%) posted its worst single week fall since May 2022 📉 Check out their charts below:

Links That Don’t Suck

💯 4 Multibagger Stocks to Buy | Stocks to Buy in 2024 | Jefferies Stock Picks 

💬 Stocktwits is hosting a free AMA with Neetika. Click to ask 

🚀 Breakout Alert: Ramco Systems. Click to know the targets shared by SEBI RA

🤖 Meta Introduces Free-To-Use AI Assistant Tool To Instagram, WhatsApp, And Messenger; Here’ What It Can Do 

🏏 Jasprit Bumrah's Public Declaration Of Mumbai Indians Role Is 'Message' For Captain Hardik Pandya

🧘 Self-made millionaire who retired at 35 shares the first time he felt financially secure

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