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Hattrick Of Losses
Yash Upadhyaya
April 16, 2024
Tale of the Tape
Hola Amigos. Markets closed down for a third straight day! 📉
Nifty and Sensex fell -0.6% each as geopolitical concerns and a falling rupee spooked investors. Midcaps were flat, but Smallcaps (+0.7%) bucked the trend. The advance-decline ratio was evenly split. 🤼
Check out the Stocktwits Sentiment Meter:
It was a mixed-bag kinda day for sectors. IT (-2.6%) and PSU Banks (-1.3%) saw the most selling pressure. Oil & Gas (+0.6%), FMCG (+0.4%) and Pharma (+0.4%) witnessed decent gains. 👍
This Ashish Kacholia-backed stock could see a +41% upside in the next year. Read our top story below to find out more. 😎
Bharti Hexacom has been humming along well since its IPO. More details below on why Jefferies is so bullish. 🔥
Exide Industries (+15%) was the top gainer on the NSE 500 after Nomura upgraded its 12-month target price. 🚀
Jio Financial Services rallied +5% intraday on its BlackRock JV entering the broking & wealth management biz. 🤝
Infosys (-3%) was the top Nifty loser ahead of its Q4 results later this week. 👀
LTIMindtree fell -3% after two senior executives resigned. PS - This comes after a spate of exits over the last 18 months. 🚨
CRISIL (-3%) after reporting a -6% drop in Q4 profit. 📊
Vodafone-Idea (-2%) Rs 18,000-cr FPO will open on Thursday. 💸
Dynacons Systems was locked in a 20% upper circuit after bagging a Rs 233-cr order from NABARD. Happy Forgings rallied +7% intraday after bagging a Rs 500 cr brake component order from a global customer. ⚙️
Here are the closing prints:
Nifty | 22,148 | -0.6% |
Sensex | 72,944 | -0.6% |
Bank Nifty | 47,485 | -0.6% |
Stock
To The Moon!
Zaggle Prepaid Ocean Services has been on a ROCKET SHIP. After a muted listing, the stock is up +80% in 7 months. Backed by ace investor Ashish Kacholia, Zaggle’s business model can be kinda confusing but we’ll break it down and lay out its bull case. 💯
About the company: Zaggle is a software services provider that helps corporates manage their spending, reimbursements and reward programmes. FYI - it also issues co-branded prepaid & credit cards for customers to use the incentives Zaggle offers. 💳
What’s popping? Well, in the last 12 months, Zaggle has added over 600 new corporate clients, bumping its total user base to 2,837. A large part of this comes from a new vendor payment solution called Zoyer. It was launched in FY24 and went on to form ~20% of Zaggle’s net 9MFY24 revenues! That is INSANE growth. 🤯
Fun fact: The company also has a customer churn rate of >2%. This is mostly because it charges nominal fees for its corporate clients. Instead, the majority of its topline comes from lenders and other merchants it ties up with for its co-branded cards and services. Finally, Zaggle is planning to expand overseas and its cross-selling opportunity remains HUGE. For two of its core product solutions, the overlap between its customers is only ~20%, implying a big untapped opportunity. 💰
Big Picture: The potential market size for Zaggle’s offerings is projected to hit Rs 13,900 cr by FY27. But let’s be real, these kinds of products are tough. We’ve seen some like Sodexo surge and then flame out. Granted, Zaggle’s approach here is very different and it covers a wider range of services. FYI - Equirus Securities has a target price of Rs 400 p/sh; +41% from current levels! 🔥
Is the stock undervalued? |
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.
Stock
Money Calling
Bharti Hexacom is off to a flier! FYI - its IPO was decently subscribed, but many chose to stay on the sidelines looking at the weak grey market premium. This clearly was a HUGE mistake. The stock closed +43% above its issue price on listing and a further +16% gains in the last five trading sessions! 🤑
For those out of the loop: The company is an Airtel subsidiary that focuses solely on the Rajasthan (40% market share) and Northeast (53% market share) circles. These are two areas that are under-penetrated & under-monetised but show growth potential. The key triggers for the stock are the buy calls issued by brokerages JM Financial and Jefferies. But why are these analysts so bullish? 🤔
For some, it’s a clear case of being able to make a concentrated telecom bet without worrying too much about extra noise. Put simply: Bharti Hexacom allows you to bet on the best parts of Airtel’s business that are growing faster, have a higher return on capital employed AND a better free cash flow conversion. Long-time Airtel investors often have to struggle with not just its India operations but also its Africa business. 🌍
Secondly, they believe the firm’s cash generation will help reduce debt by Rs 5,500 cr and bring down the key ‘net debt to EBITDA’ ratio to 0.4x by FY27. This in turn could boost dividend payouts! FYI - Jefferies is the biggest bull here, with a target price of Rs 1,080 p/sh; +22% from current levels! 🚀
What’s your view on the stock? |
Stocktwits Spotlight
Here’s a bullish chart setup by Raghavendra on Senco Gold. Follow him for more amazing insights and add $SENCO.NSE to your watchlist and track the latest from the community.
Disclaimer: Raghavendra Dathe is not a SEBI registered advisor and you should not construe any information discussed herein to constitute investment advice. Consult your financial advisor prior to making any actual investment or trading decisions.
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