Tale of the Tape 

Good evening everyone. Markets snapped their five-day losing streak

Nifty (+0.7%) and Sensex (+0.8%) started off the Diwali week with a bang. Midcaps (+0.8%) and Smallcaps (+1.2%) also had a good day. The advance-decline ratio was in favour of the bulls (3:2).

It was a wave of green across sectors. PSU Banks (+3.8%), Metals (+2.6%) and Pharma (+1.3%) were the top gainers.

Interglobe Aviation was the top NSE 500 loser after posting Q2 losses. Shriram Finance was the top Nifty gainer after a solid Q2 show. More details below.

Our Diwali series continues! Read our story below on Axis Securities’s top picks for Samvat 2081.

BHEL, Inox Wind and Bandhan Bank saw big moves today. Check out their charts below to find out why.

Waaree Energies had a blockbuster market debut, ending the day +56% from its IPO price of Rs 1,503 p/sh.

United Breweries (-2%) dipped after Citi downgraded the stock, citing regulatory & operational challenges to its margins.

Results reaction. Coal India (-4%) was the top Nifty loser after Q2 PAT fell -22% YoY. Yes Bank jumped +7% after a strong Q2 show.

ITD Cementation (-1%) was in focus on reports that the Adani Group may acquire it. 

SpiceJet rallied +4% intraday after launching 32 new flights for its domestic operations.

Here are the closing prints:

Earnings
Earnings Roundup

Interglobe Aviation (-8%) was the top NSE 500 loser after weak Q2 results. The major problem though was that Indigo reported its first quarterly loss in nearly two years on the back of higher fuel costs + grounding-related expenses. Passengers flown increased by an okay-ish +6% YoY to 27.8 million due to lower demand.

To top it off, Indigo also said it expects per-passenger revenue to drop next year. CFO Gaurav Negi said: "Basis the trends of October, we are estimating early- to mid-single-digit moderation in passenger unit revenues for the third quarter…”  Not great!

Here is its Q2 report card:

• Revenue: Rs 16,970 cr: +14% YoY (vs Est: Rs 16,790 cr)

• EBITDAR: Rs 2,434; -1% YoY

• EBITDAR Margin: 14.3% vs 16.4% YoY

• Net Loss: Rs 987 cr vs Rs 189 cr profit YoY (Est: Rs 134 cr profit)

Big Picture: Some of the weakness in Q2 is due to base effect. After all, Indigo has been KILLING it for the last two years. It's natural for growth to moderate even as the airline grapples with volatile oil prices. FYI - most brokerages are bullish, even though they’ve cut their target price on weaker future earnings. Jefferies has a target of Rs 5,100 p/sh (vs Rs 5,225 p/sh earlier)

Interglobe Aviation is +35% YTD

Shriram Finance (+5%) was the top Nifty gainer after solid Q2 results. Robust demand in its commercial vehicle (CV) & small biz segments boosted lending income. Its core CV loan book jumped +14% YoY to hit Rs 1.12 lakh cr.  FYI - all segments but personal loans registered growth YoY, which is a big positive. Overall, Assets under Management grew at a healthy +20% YoY to hit Rs 2.43 lakh cr.

The only slightly sour notes were that its gross ‘stage-3’ assets -- aka loans overdue for more than 90 days --  were up +3% QoQ to hit Rs 12,764 cr. Also, net interest margins saw a tiny decline. Nothing alarming at all, but should be a key monitorable moving forward. PS - they also approved a 1:5 stock split, which boosted sentiment.

Here are its key stats:

• Net Interest Income: Rs 5,607 cr; +16% YoY (vs Est: Rs 5,457 cr)

• PAT: Rs 2,071 cr; +18% YoY (vs Est: Rs 2,077 cr)

• Gross NPA: 5.32% vs 5.79% YoY

• Net NPA: 2.64% vs 2.80% YoY

Shriram Finance is +60% YTD.

Stocktwits Spotlight
Diwali 2024 Picks - By SEBI RAs 🚀

We’ve curated a list of top stock picks by SEBI RA’s. In less than 5 minutes, we’ll walk you through these top picks that have a timeframe of ~12 months and also cover key fundamental, technical and news events surrounding these stocks.

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