Tale of the Tape 

Good evening everyone and Happy Raksha Bandhan!  

Nifty and Sensex ended barely changed in another boring range-bound trading session. Midcaps (+0.2%) were also subdued, while Smallcaps (+1.7%) took off. The advance decline ratio was in favour of the bulls (3:2).

Except Auto (-0.9%) and Banks (-0.3%), all other sectors ended in the green. Metals (+1.9%) was the top gainer while Oil & Gas (+1.5%) and PSU Banks (+1.2) saw healthy gains.

FIIs have been exiting India for sometime now. Read our top story to find three stocks that have been hurt the most.

Interarch Building Products IPO kicked off today. Check out our analysis to help you decide whether to subscribe.

Shriram Finance, Genus Power and Zomato saw big movements today. Look at their charts below to find out why.

PVR Inox rallied +4% intraday after reports said Stree 2 had strong box office collections.

Ola Electric hit a +10% upper circuit today. PS - the stock is now just 6 rupees away from DOUBLING its IPO price, which is insane.

Paytm (+1%) was in focus after Bernstein said it could hit profitability by 2026-27.

Caplin Point Laboratories jumped +15% after its Chennai plant got Brazilian regulatory approval, which will pave the way for market entry. 

Order wins. Mishra Dhatu Nigam gained +4% after bagging a Rs 285 cr contract. DCX Systems was locked in a +5% upper circuit after winning a Rs 107 electronics kit order.

Here are the closing prints:

Market
FIIs Hit Exit

The Nifty has beaten its Asian peers in 2024. No surprise considering the Indian bull market, but the real shocker is that it’s done this completely without foreign institutional investor (FII) help. ICYMI - FIIs have sold stocks worth Rs 30,000 cr since the Budget alone. Overall FII shareholding is now at an 11-year-low!

There are a lot of reasons for this including high valuations, a lack of US interest rate cuts and global uncertainty. For most of the market, this doesn’t matter too much because domestic investors are picking up the slack. But it does hurt individual stocks. So here are 3 names that saw the biggest FII selloff QoQ. PS - we’ve excluded some stocks that saw huge block deals to provide a more accurate picture.

1) Route Mobile saw its FII shareholding drop to 5.75% in Q1FY25 vs 15.8% in Q4FY24. The company’s last two quarters have been a mixed bag, with the bottomline declining. Its European and Latin American markets have been seeing headwinds. Also, forex fluctuations have hurt its Nigerian biz. FYI - Route is down -8% YTD and it has corrected sharply from its June highs.

2) Restaurants Brand Asia’s foreign ownership dropped a little over 6 percentage points QoQ. FYI - most QSR firms have been struggling over the last year. Muted consumer spending + stiff competition from Zomato & Swiggy have eaten a chunk of their profits. While Restaurant Brands Asia has resorted to discounts to prop up sales, it still reported a loss in Q1FY25. The company is down -7% YTD.

3) Kotak Mahindra Bank’s FII stake fell to 33.16% vs 37.59% in the March quarter. This isn’t a huge surprise. Foreign investors have slowly been trimming their ownership since Uday Kotak left. And in the last few months, the lender has seen RBI action and leadership issues. The stock is down -7% YTD.

Stocktwits Specials
IREDA: 5-Min Review

IREDA is down -22% from it's all-time highs. Is it the right time to buy the dip? 

Check out our recent stock analysis video where we cover all the major updates around IREDA. Along with this, we also breakdown the fundamentals of the company & discuss SEBI RAs’ views on the stock.

IPO
Interarch Building Products IPO Review

Interarch Building Products IPO opened for subscription today! The price band is fixed at Rs 850-900 p/sh. The company aims to raise Rs 600 cr from the IPO.

Founded in 1983, the company is a leading pre-engineered steel building (PEB) player. Simply put they make full structures for their customers and also sell PEB materials such as ceilings, roofings and claddings. Some of its top customers include Grasim Industries, Berger Paints and Timken India. Interarch is also the second-biggest player in terms of capacity (1.41 lakh mpta), with four manufacturing facilities spread across India and two more on the anvil. The company has had a decent last two years, with its topline growing at 25% CAGR since FY21.

FYI - the IPO is mostly an “Offer for Sale’, with the fresh issue only being around Rs 200 cr. The money raised will be used for capex expansion and upgrading its tech.

FY24 snapshot:

• Revenue: Rs 1,293 cr; +15% YoY

• EBITDA: Rs 113 cr; +7% YoY

• EBITDA Margin: 8.74% vs 9.47%

• PAT: Rs 86 cr; +6% YoY

Big Picture: The domestic PEB industry grew at a 8% CAGR from FY19 to FY24. But experts project it to ramp up to 12% CAGR over the next five years on the back rising demand for quick and affordable construction. The shift from unorganised to organised players (currently only ~40% of the market) will also benefit Interarch big time. In the short-term, a lot depends on its expansion into new geographic areas like western India. FWIW - the IPO is also VERY reasonably priced and current grey market data suggests it may list at a cool 36% premium!Interarch Building Products IPO opened for subscription today! The price band is fixed at Rs 850-900 p/sh. The company aims to raise Rs 600 cr from the IPO.

Charts

Movers and Shakers

Here are three companies that saw big moves today!

1) Zomato rallied +6% intraday after Blinkit smashed new records for the Raksha Bandhan festive season. FYI - it reported all-time high orders in a day and highest-ever orders per minute! UBS also said it sees a +21% upside from current levels, further boosting sentiment. PS - the stock eventually ended in the red due to MAJOR profit-booking.

2) Genus Power was locked in a 5% upper circuit after it won multiple orders worth Rs 2,925 cr. The awards are for meter systems and will take place over the next 8-10 years, providing solid revenue visibility. FYI -  Genus’s total order book now stands at a whopping Rs 24,383 cr.

3) Shriram Finance hit an all-time high after HSBC bumped up their target price. Shriram has several potential re-rating triggers including a rating upgrade in the months ahead. ICYMI - Shriram also had a decent Q1, pulling ahead of most of the NBFC pack. HSBC sees a +17% upside from current levels.

Check out their charts below:

Links That Don’t Suck

📈 Should you buy IREDA shares? | IREDA Targets | IREDA share analysis | IREDA share news in Hindi 

💬 Got a burning question? Ask SEBI RA Arun aka Harmonics Trader

😇 Goldman Sachs cuts odds of U.S. recession to 20% after retail and jobs data 

⚕️ Is India Really At Risk Of A Monkeypox Outbreak?

🏏 Lyon on India: 'Ten years of unfinished business'

🍿 Stree 2 box office collection: Shraddha Kapoor-Rajkummar Rao’s film crosses Rs 280 crore mark

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