Tale of the Tape 

Good evening everyone and a very happy Diwali! 

Markets were back in the red. Nifty and Sensex closed down -0.5% each. Midcaps (+0.2%) saw muted gains while Smallcaps (+1.1%) popped off. The advance-decline ratio was in favour of the bulls (3:2).

Most sectors ended in the red. Media (+2.3%) and FMCG (+0.9%) were the top gainers. NBFCs (-1.3%), Pharma (-1%) and Banks (-1%) saw the most selling.

Cipla was the top Nifty loser after analysts raised red flags over future growth. Meanwhile, Marico jumped +9% intraday after a strong Q2 show. More details below.

Our Diwali stocks series wraps up today with top picks from Nirmal Bang. Take a look below.

Five-Star Business Finance, Genesys International and Garden Reach Shipbuilders all saw big moves today. Check out their charts below to find out why.

Results reaction. Star Health fell -4% after its Q2 PAT dipped -11% YoY. Meanwhile, Force Motors was locked in a +20% upper circuit after its bottomline jumped +44% YoY.

Torrent Pharmaceuticals (-2%) was in focus after 1.04 cr shares (3.1% equity) changed hands in a big block deal; the buyers and sellers could not be immediately identified.

Nazara Technologies rallied +4% intraday after acquiring a UK growth marketing agency for Rs 52 cr.

Shriram Properties rallied +7% intraday after inking a joint development agreement for 6 acres prime land in Pune.

Here are the closing prints:

Earnings
Earnings Roundup

Cipla (-4%) was the top Nifty loser after brokerages flagged growth outlook concerns. FYI - its Q2 numbers were decent and in line with Street estimates. The pharma firm posted double-digit growth in its bottomline, its highest-ever EBITDA margins and a more modest +5% YoY bump in topline.

So what’s the problem? For starters, its Q2 show was carried a LOT by Europe, Africa and emerging markets. North America sales were up only +4% YoY, while its domestic business also grew at a meh +5% YoY, missing analyst estimates. Any slowdown in India or the US would be a major red flag.

Beyond this, three of its key products -- Lanreotide, Revlimid and Albuterol -- are facing regulatory challenges. PS - these three drugs account for 20% of Cipla’s FY26 EBITDA. Also, two other key drugs, Advair (respiratory medication) and Abraxane (chemotherapy), were slated for FY25 rollout but have been delayed due to the company’s manufacturing facilities at Pithampur and Goa facing regulatory issues. FYI - Nuvama has cut its target price to Rs 1,593 p/sh (vs Rs 1,663 p/sh earlier).

Here is its Q2 report card:

• Revenue: Rs 7,051 cr; +5% YoY (vs Est: Rs 7,041 cr)

• EBITDA: Rs 1,885 cr; +9% YoY 

• EBITDA Margin: 26.7%

• PAT: Rs 1,303 cr; +15% YoY (vs Est: Rs 1,131 cr)

Cipla is +13% YTD.

Marico jumped +9% intraday on strong Q2 results. Domestic volumes grew +5% YoY led by decent demand in its core business. PS - this is particularly surprising because the company hiked prices across oil products, which normally results in a volume backlash. Margins were down slightly despite the price hikes though, due to higher raw material & employee costs. Overall though, the bottomline still saw a big double-digit jump.

Big Picture: Marico stands out as one of the bright spots in the FMCG sector. It’s mostly because its products (Parachute, Saffola) cater to more affluent urban customers, a segment that hasn’t been affected by the recent slowdown. FYI -  Jefferies has upped its target price to Rs 800 p/sh (vs Rs 780 p/sh earlier) and said the company could see double-digit revenue growth in the near future! Check out the Stocktwits Sentiment Meter below.

Here are its key stats:

• Revenue: Rs 2,664 cr; +8% YoY

• EBITDA: Rs 522 cr; +5% YoY

• EBITDA Margin: 19.6% vs 20.1% YoY

• PAT:  Rs 433 cr; +20% YoY

Marico is +20% YTD.

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