Tale of the Tape 

Happy Monday y’all. 

Markets started off the new week on a strong note. Nifty and Sensex rose +0.5% each. Midcaps (+0.7%) and Smallcaps (+0.4%) also climbed higher. Over 3 stocks advanced for every 1 loser on the NSE500. Check out the heatmap:

Not a single sector ended in the red. Auto, IT and FMCG gained ~1% each. Metals (+0.9%) and Real Estate (+0.8%) also witnessed healthy gains. 

Balkrishna Industries tanked over 9% intraday on mixed Q4 results and uncertainty surrounding its new business. GE Vernova T&D was locked in a 10% upper circuit on blockbuster Q4 results

Aegis Vopack Terminal’s Rs 2800 cr IPO kicked off today. Check out our analysis below to help you decide whether to subscribe.

Zomato aka Eternal (-5%) was the top Nifty loser after FTSE, MSCI weight reduction. Reports indicate that stock may see $840 million of FII selling. 

Divi’s Lab (+4%) hit a new all-time high after winning a long-term supply deal. The deal size and name of the company were not disclosed. 

Concor was in focus. Global brokerage firm Jefferies raised its 12-month target price to Rs 825 p/sh; +11% from current levels.

Results reaction. GNFC (+6%) reported a 62% YoY increase in profits. Gillette India jumped +10% intraday on strong operational performance. 

Samvardhana Motherson is reportedly in talks to acquire Japanese auto parts maker Marelli Holdings.

Earnings
Earnings Roundup

Balkrishna Industries tanked over 9% intraday on mixed Q4 results and uncertainty surrounding its new business. Volumes were flat YoY while margins contracted due to higher raw material costs. A one-time forex loss of Rs 58 cr dented the company’s bottomline. To be fair, the results are not soo bad to justify the steep cut. 

In fact, it's the company’s decision to expand into the truck and car radial tyre market that’s got investors sweating. This segment is highly consolidated and price-sensitive, dominated by well established players like MRF, Apollo, JK Tyre and Ceat. These companies have spent decades building deep OEM relationships, vast dealer networks and servicing ecosystems. Balkrishna will need to invest heavily in these areas before seeing any results and even then there is no guarantee of success. PS - Kotak sees a further -15% downside from current levels. 

• Revenue: Rs 2747 cr; +3% YoY

• EBITDA: Rs 602 cr; -10% YoY 

• EBITDA Margin: 21.9% vs 24.9% 

• PAT: Rs 362 cr; -25% YoY

Balkrishna Industries is down 13% YTD.

GE Vernova T&D was locked in a 10% upper circuit on blockbuster Q4 results. The company reported all-time high Sales, EBITDA and Net Profit! The company won new orders worth Rs 3,000 cr in Q4; +2x YoY. PS - their total orderbook stands at Rs 12,700 cr, implying revenue visibility for 3-4 years. Going forward, the company is confident about long-term demand with scope for future margin expansion! PS - Nuvama sees a further +10% upside from current levels! Here is its Q4 report card:

• Revenue: Rs 1153 cr; +26% YoY

• EBITDA: Rs 252 cr; +2.2x YoY

• EBITDA Margin: 21.9% vs 12.1%

• PAT: Rs 186 cr; +3x YoY 

GV T&D is +1% YTD.

Specials
HUGE Dividend Alert! 🚨

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