Tale of the Tape 

Hola Amigos!

Markets struggled to climb higher. Nifty and Sensex gave up their early morning gains to end in the red. Midcaps were flat, while Smallcaps (-0.4%) saw deeper cuts. The advance-decline ratio was in favour of the bears (3:2).

It was a mixed-bag kinda day for sectors. Metal (+1.4%) stocks shined while Rea Estate (-1.4%) and NBFCs (-1%) saw profit booking.

This AI stock has HUGE upside potential, according to Monarch Capital. Read our top story below to find out more.

Crizac’s IPO kicked off today! Check out our analysis below to help you decide whether to subscribe.

RBL Bank, Dreamfolks Services and Tata Communications saw big moves. Look at their charts below to find out why.

Max Healthcare (+1%) and IndiGo were in focus after Nuvama said they would likely be added to the Nifty index.

Anil Ambani stocks were under pressure after SBI said it classified its Reliance Communications account as ‘fraud’. PS - Reliance Power and Reliance Infra were down -2% each.

Sigachi Industries cracked -8% after reports said its destroyed factory was operating without a fire no-objection certificate. PS - the stock is down -25% over the last week.

RITES jumped +6% after bagging two orders from Africa Rail and the Indian Railways.

Inox Winds was up +3% after Motilal Oswal initiated coverage; the brokerage sees a further +19% upside from current levels.

HDB Financial Services had a solid market debut, with the stock ending at Rs 840 p/sh; +14% higher than its IPO price.

Stock
What’s Popping!

After a great 2024, Netweb Technologies has corrected by a whopping -38% from its 52-week highs. We know what you’re thinking: is it time to buy the dip or is there more pain ahead? Here’s what you need to know.

For the unaware: Netweb is India’s only end-to-end IT solutions provider for high-end computing clients in sectors ranging from AI and auto to pharma and FMCG. It’s a full-stack player, offering servers & switches, which lets it offer its products at 10%-15% cheaper prices than global rivals like HP and Dell.

Analysts say its topline could grow at a cool +40% CAGR over FY25-27 based on these two factors:

1) Artificial intelligence: AI is booming and with the GOI’s Rs 10,000-cr India AI mission, Netweb should be able to win a chunk of proposed projects. Experts say this vertical could grow to ~20% of topline by FY28 vs ~14% currently.

2) High-performance computing: The sector is small in India, but with a huge growth runway in fields like auto (vehicle simulation for testing), pharma (drug discovery) and FMCG (product R&D). To keep up with demand it saw in FY25, it has added a new hardware plant that will open by FY27 and add +30% extra capacity.

Big Picture: A huge total addressable market, consistent deal wins and a strong Rs 4000-cr order pipeline are setting up Netweb for a strong FY26-28. After the stock’s recent drop, analysts also say it sits at a comfortable price tag right now. FYI - Monarch Networth Capital has a target price of Rs 2,450 p/sh; +32% upside from current levels.