Tale of the Tape 

Howdy folks. Welcome back to the Daily Rip! 👋

Nifty and Sensex hit new highs yet AGAIN, ending up by +0.4% each. Midcaps (+0.5%) and Smallcaps (+1.1%) popped off as well. The advance-decline ratio was in favour of the bulls (3:2). 🚀

It was a mixed-bag kinda day for sectors. Real Estate (+1.9%) and Banks (+0.9%) saw the most buying. Pharma (-0.4%) and Metals (-0.2%) witnessed minor cuts. 💸

Zomato (+1%) wants to take on BookMyShow. Bold bet or a recipe for disaster? Read our top story below to find out more. 🍿

Mahindra & Mahindra left investors excited after its analyst meet. More details below on the top takeaways. 💯

IIFL Finance, Paras Defence and Som Distilleries saw big movements today. Check out their charts below to find out why. 🔥

Hindustan Aeronautics (+6%) hit a record high after getting an RFP from the defence ministry for 156 light combat helicopters. 🚁

Ixigo had a blockbuster market debut, ending the day +78% higher than its IPO price of Rs 93 p/sh. 🤑

Kalpataru Projects International fell -4% after 90.3 lakh shares (5.6% equity) changed hands in a block deal. Reports say the promoter was the likely seller. 🤝

USFDA reactions. Biocon (-2%) fell after the regulator issued three observations for its Vizag facility. Jubilant Pharmova was down -3% after it got 15 observations for its Montreal facility in Canada. 🚨

HFCL (+5%) hit a 52-week-high after the EU exempted it from anti-dumping duties imposed on other Indian optical fibre makers. ✅

Here are the closing prints:

Stock
Zomato’s Big Plans

Zomato is in talks with Paytm to acquire its movie & event ticketing biz! Reports say the deal could end up being worth 1,500 cr. While it may seem like one is being scavenged for parts (Paytm) and the other is biting off more than it can chew (Zomato), both companies could be walking away with a win here. Here’s what you need to know: 🍿

Let’s start with Paytm. This is a no-brainer. The company gets the cash it needs, it gets to focus on its core biz and lets Vijay Shekhar Sharma fix the perception that Paytm has grown too big for him to properly control. 💯

With Zomato, it’s tougher to understand. It doesn’t have experience with movie tickets, but it does run live events (‘Zomaland’ festivals that combine food & music). The company has said it sold nearly 200k tickets on its platform for FY23. Zomato’s ‘going out vertical’ did report Rs 260 cr in revenue in FY24. But let’s be real, this is an afterthought and just 2% of the company’s overall biz. 📊

What makes matters worse is that there is almost no synergy. When the company got into instant commerce, aka Blinkit, it made sense. Zomato could re-use its logistics network, knowledge of customers, software & algorithms. With movie tickets, there’s very little of that. 👀

So, why? The answer is that Zomato needs to sell something as its next growth engine. Food delivery as a whole will likely tap out in the next few years. Blinkit, which has drawn major investor attention in the last 2 years, is starting to be seen as a success story. This means Zomato has to feed the hungry markets with something new. That leaves tickets. 🎟️

FYI - BookMyShow is the big daddy here, projected to have hit Rs 1,400 cr in topline for FY24. Can Zomato compete, or will it end up like Paytm, with too many verticals that it can’t manage properly? We’ll have to wait and find out. ⏰

Specials

Turning Point For Tata Motors?

2024 is still going strong for Tata Motors. But is it a good buy at current levels? Check out our recent video covering technicals, fundamentals, brokerage rating & SEBI RAs' views on this Tata group stock.

Stocks

M&M Analyst Day: Key Takeaways 

Mahindra & Mahindra (+2%) hit a record high after analysts were left impressed during its recent investor meeting. FYI - M&M has been killing it lately, with the stock up +74% YTD and surpassing Tata Motors to become the second most-valued automaker! Here are the top takeaways from the analyst meet: 😎

1) Strong PV pipeline: The company will launch 16 new cars over the next six years. Nine of these will be normal petrol & diesel SUVs, while seven will be brand-new electric vehicles (EVs). FYI - experts are super bullish about the new EV models, calling it the company’s bet to drive into the “premium” lane. FYI - this sector is expected to boom, but will also see stiffer competition with Maruti launching its first EV in 2025. ⚡

2) Farm equipment: It’s no secret that this vertical sucked for M&M in FY24. Even in Q4, its tractor sales volumes declined -20% YoY. Its market share has also dropped to 39.4% (vs 40.7% YoY). That said, the company points out there are a BUNCH of positive triggers on the horizon. This includes the GOI boosting rural consumption, a strong 2024 monsoon and signs of a rebound in some rural markets. 🚜

3) Commercial vehicles: Finally, the company is doubling down on the LCV segment, in which it has ~50% market share. This makes sense, considering the heavy truck segment is very crowded these days. It also has key launches planned in the medium category: five ICE vehicles and two BEVs. 🚌

TL;DR: A lot of positive triggers, but a lot of competition. Execution will be key. FYI - Multiple brokerages have upped their target price, with Jefferies’s Rs 3,510 p/sh the highest on the Street now. 🔥

Charts

Chartbusters

Here are three companies that saw BIG movements today:

1) IIFL Finance was up +9% intraday after the company said it had rectified all the issues pointed out in the special RBI audit! ICYMI - back in January, the regulator asked IIFL to stop issuing gold loans over “material supervisory concerns”. This was a big blow, but it looks like IIFL is on the road to recovery. PS - the stock is still down -16% YTD. 📈

2) Paras Defence was locked in a +20% upper circuit for the second session in a row! FYI - the immediate triggers are several large block deals. The first was Abu Dhabi Investment Authority acquiring a 1.44% stake last week. And today, two more transactions (one for a 1.8% stake, the other for 4.4% equity). To cap it off, the company estimates its order book will quadruple in the next 3 years to Rs 2,500 cr. 💰

3) Som Distilleries tanked -16% intraday after authorities said they found 50 children working at the company’s plant in Madhya Pradesh. FYI - the firm has said that a private contractor was responsible for the offence. Also, the plant belongs to one of the group’s associate private companies and not the listed firm. This helped the stock recover, but there’s no way to give a positive spin on this one. ⛔

Check out their charts below:

Links That Don’t Suck

💯 Tata Motors: End of Bull Run? | Tata Motors Latest News |Tata Motors Share Analysis

✌️ Ramesh Damani: The best time to invest in India was in 1991 and the second best time is today 

🪙 Is Trump Behind The New DJT Memecoin On Solana? What We Know 

😇 Foreign Holiday? Nah! Summer Vacations Will Always Mean Naani Ka Ghar To Me

🏏 'No unity. Everyone separated left and right': Gary Kirsten livid after Pakistan's embarrassing T20 World Cup exit 

🕺 ​​Diljit Dosanjh is officially India’s most fashionable man

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