Friday’s Are For Profit Booking

Tale of the Tape 

Howdy folks. Happy Friday! 🍻

Nifty (-0.3%) and Sensex (-0.4%) ended in the red after some heavyweight selling. Midcaps and Smallcaps were down -0.2% each. The advance-decline ratio was in favour of the bears (3:2). 📉

Most sectors ended in the red. FMCG (-1.2%), PSU Banks (-1.1%) and Oil & Gas (-1.1%) got beat up the most. IT (+0.8%) and Metals (+0.4%) saw some buying. 👍

Are IT stocks at an inflection point? Read our top story below on what Accenture’s results tell us about the sector’s future. 🔮

Stanley Lifestyles IPO opened for subscription today! Check out our analysis below to help you decide whether to invest. 🔍

Vodafone-Idea was up +4% after reports said it completed initial 5G rollout obligations in 17 circles. PS - if it didn’t do this, it would’ve lost its spectrum. 🛜

Aster DM Healthcare gained +7% after 4.7 cr shares (9.3% equity) changed hands in a block deal; reports say PE firm Olympus Capital Asia was the likely seller. 🤝

IREDA was up +7% after being added to a key FTSE index.

Bikaji Foods International hit a 52-week-high after Nuvama initiated coverage on the stock; the brokerage sees a +21% upside from current levels. 🔥

Mrs Bectors Food Specialities (-2%) was in focus after its board approved raising Rs 400 cr. 💰

Hindustan Zinc (+2%) gained after signing a supply MoU with a US battery maker. 🔋

Here are the closing prints:







Bank Nifty



Stocktwits Alert! 🧳 ✈️ 

Hey, everyone. Just a quick heads up – I’ll be off the grid from June 24 to July 2, enjoying a much-needed vacation in beautiful Vietnam. That means the daily rip will be taking a little break too. I appreciate your love and patience while I’m away. Can’t wait to come back refreshed and ready to share more awesome content with y’all. Stay tuned for some exciting updates when I return! See you soon. ✈️

Tech’s The Way Mahi Ve!!!

IT stocks popped off today, rallying up to +4% intraday after Accenture’s Q3 results threw a bone to both optimists AND pessimists. Why does Accenture matter? It is one of the biggest IT services companies in the world and its quarterly results are generally a good predictor of what to expect from our very own IT companies! 📊

So what does Accenture’s report card say? Let’s start with the good stuff. Overall bookings were up +22% YoY, with outsourcing booking rising +42% YoY to an ALL-TIME HIGH of $11.8 billion! Equally important: the company’s management said the ‘bookings-to-revenue’ conversion has improved and consulting will be returning to growth after 5 straight quarters of decline! 🫡

On the more muted side, it also narrowed its annual revenue guidance and the results were in-line with expectations. In other words, the broader picture is similar to last quarter, which wasn’t too great. 🤷

But that doesn’t matter too much for the IT sector. Why? Because we’re at a point where ‘not bad news’ = ‘good news’. The industry as a whole missed out on the 2023-24 bull run, its downsides have been priced in and valuations are decent. 👍

There is also a broader sense that the IT sector has bottomed out. Headcounts have been ‘rationalised’ and companies are gearing up for more AI biz. On the global front, Europe has started cutting rates and the inflation battle seems to have been won. The only thing left, and yes it's a big one, is for the US market to start rebounding and discretionary tech spending to pick up. 📈

As Nomura puts it: “FY25 Street estimates for Indian IT services companies have been adequately rationalised, and they face little downgrade risk from current levels… expect a sustainable strong demand environment to drive healthy earnings growth over the next three years.”


Cochin Shipyard - Wait Or Invest?

With +7.5x returns in the last 1 year, Cochin Shipyard 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.


Stanley Lifestyles IPO Review

Stanley Lifestyles IPO opened for subscription today! The price band is fixed at Rs 351- 369 p/sh. The company aims to raise Rs 537 cr from the IPO. 💸

For the unaware, Stanley is a leading luxury furniture brand that deals in everything from sofas and armchairs to beds and kitchen cabinets. The company is the fourth-largest home furniture player by revenue, but its retail presence in India is about four times bigger than their nearest competitor! FYI -  Stanley has 62 stores across 21 cities in 11 states and union territories. They are also a full-stack player: designing, manufacturing and retailing their products with the help of two manufacturing facilities in Karnataka. Finally, the firm has seen impressive growth, with its topline growing +40% YoY in FY22 and FY23. 🔥

FYI - the IPO’s fresh issue will help Stanley raise Rs 200 cr, the rest being done through the ‘Offer for Sale’ route. The money raised will help it open 24 new stores between FY25-FY27. 🛒

9MFY24 snapshot:

  • Revenue: Rs 313 cr

  • EBITDA Margin:18.4%

  • EBITDA: Rs 58 cr

  • PAT: Rs 20 cr

Big Picture: Stanley is a play for India’s booming luxury market. FYI - the premium furniture & home goods industry is projected to hit $10.5 billion by FY27 (vs $5.3 billion in FY23). As you can guess, its biz is also closely tied to the fortunes of India’s luxury real estate sector, which has exploded in the last two years. We’ll have to see if the good times continue and when they don’t, how Stanley manages to adapt. The IPO pricing is on the expensive side though, with most analysts calling this a long-term bet. That said, current grey market data suggests it may list at a strong 44% premium! 🚀

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Movers and Shakers

Here’s a look at this week’s top NSE500 movers. FACT took the pole position after rallying +45%. 🥇 MapMyIndia (+29%) hit a new all-time high after Goldman Sachs initiated coverage. Linde India (-10%) closed down on a weekly basis for the 4th time in the last 5 weeks. Chemplast Sanmar (-10%) saw profit booking after last week’s massive jump. 📉 Check out their charts below:

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