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- Markets Inch Higher For A 4th Straight Day
Markets Inch Higher For A 4th Straight Day
Yash Upadhyaya
August 21, 2024
Tale of the Tape
Hola Amigos! Markets extended their gaining streak to day 4.
Nifty & Sensex closed with minor gains after a weak start. Midcaps (+0.3%) saw decent gains while Smallcaps (+1.2%) soared. The advance-decline ratio was in favour of the bulls (3:2). Check out the Stocktwits Sentiment Meter:
It was a mixed-bag kinda day for sectors. FMCG (+1.4%) and Pharma (+0.9%) saw the most buying. Real Estate (-1.3%) and PSU Banks (-0.4%) witnessed profit booking.
This recently listed company has doubled from its IPO price and could see another +29% rise from current levels. Read our top story below to find out more.
Orient Technologies IPO kicked off today. Check out our analysis below to help you decide whether to subscribe.
PNB Housing Finance, Nykaa and ICICI Securities saw big movements today. Look at their charts below to find out why.
Divi's Laboratories (+4%) was in focus after a US court blocked the launch of a rival drug.
Brokerage reactions. Varun Beverages gained +4% after Bank of America initiated coverage on the stock; it sees a +19% upside from current levels. Meanwhile, Tech Mahindra (-1%) downgraded the stock, citing overstretched valuations.
Delhivery (-2%) was in focus after 88.76 lakh shares (1.2%) equity changed hands in a block deal; the buyers and sellers were not immediately known.
GE T&D India was locked in a -5% lower circuit after its promoters said they are considering selling a small stake.
Genus Power was locked in a +5% upper circuit for a second time this week after it won smart meter orders worth Rs 3,609 cr.
Here are the closing prints:
Nifty | 24,770 | +0.3% |
Sensex | 80,905 | +0.1% |
Bank Nifty | 50,686 | -0.2% |
Stock
Awesome Gains: +2x In 3 Months 📈
Awfis Space Solutions has been KILLING it!! The stock has DOUBLED since its IPO in May and showing no signs of slowing down. We know what you’re thinking: what the hell is going on here?
For the unaware, the company is the largest provider of workspace centres for other companies. They do everything from offering co-working spaces to designing & building offices. FYI - Awfis also caters to revenue-adjacent spaces such as food & beverages, IT support and event hosting and meetings.
What’s popping? For starters, experts project flex office seat demand to boom in the next two years growing at a 23% CAGR. This will be led by two big factors: a revival in start-up funding after a long winter and the rise of ‘global capability centres’ which is a HUGE factor in India’s office leasing industry right now.
To handle this demand, Awfis is kicking off an insane expansion plan. It will add 108k seats (29% CAGR) over FY24-FY27. As a result, the company’s industry capacity share will grow from ~6% in FY21 to 11% in FY27, with occupancy projected to remain stable in the 71%-73% range. The cherry on top is that Awfis will not take on any debt to do all of this. That’s because it's shifting to an asset-light model that shares inventory risk & capex with landlords.
Big Picture: After Covid, many predicted the death of commercial offices. That isn’t quite true as Awfis has shown. Big employers need hybrid spaces and newer formats that offer better cost benefits. This is something Awfis is looking to capitalize on with its huge expansion. FYI - Nuvama has initiated coverage on the stock and has a target price of Rs 1,013 p/sh; +29% from current levels!
What’s your view on the stock? |
Stocktwits Specials
IREDA: 5-Min Review
IREDA is down -22% from it's all-time highs. Is it the right time to buy the dip?
Check out our recent stock analysis video where we cover all the major updates around IREDA. Along with this, we also breakdown the fundamentals of the company & discuss SEBI RAs’ views on the stock.
IPO
Orient Technologies IPO Review
Orient Technologies IPO opened for subscription today! The price band is fixed at Rs 195-206 p/sh. The company aims to raise Rs 215 cr from the IPO.
Founded in 1997, Orient is a IT solutions provider that specializes in data centre & end-user computing (52% of FY24 topline). FYI - some of its marquee clients include Dell, Nutanix and Fortinet. The company recently entered the ‘device as a service’ (DaaS) segment, where it provides IT hardware on a subscription model. Finally, Orient’s been doing well: revenue has grown at a CAGR of 14% over FY22-FY24, while PAT grew 10%!
FYI - the fresh issue of the IPO is about Rs 120 cr with the rest being done through the ‘Offer for Sale’ route. Some of the money (Rs 10 cr) will go to building a new Navi Mumbai office, while the remaining will be used for other capex purposes.
FY24 snapshot:
Revenue: Rs 603 cr; +13% YoY
EBITDA: Rs 57 cr; +16% YoY
EBITDA Margin: 9.4% vs 9.1% YoY
PAT: Rs 41 cr; +8% YoY
Big Picture: The big thing to watch out for is Orient’s DaaS biz which is expected to grow at a 9% CAGR to hit Rs 57,000 cr by FY28 on the back of hybrid workforces + rising cyber threats. On the flipside, the company makes 99% of its money from domestic clients. This makes sense because there’s less competition, but it also comes with lower billing rates + long tender processes for GOI contracts. Future growth depends on its ability to expand abroad and take away market share from bigger rivals. FWIW - the IPO is reasonably priced and current grey market data suggests it may list at a decent 27% premium!
Are you applying for the IPO? |
Charts
Movers and Shakers
1) PNB Housing Finance jumped +10% intraday after 1.39 cr shares (5% equity) changed hands in a big block deal. Reports say General Atlantic was the likely seller. It’s tough to blame PE firms for hitting the exit door when markets are at all-time highs.
2) ICICI Securities fell -8% after the National Company Law Tribunal approved its delisting plans. FYI - this whole saga has been controversial, starting with ICICI offering shares of its bank over hard cash to exiting shareholders. Allegations of the lender trying to influence shareholders, minority shareholders including Quantum MF filed petitions against the delisting, complaining the share swap ratio was bad! It’s all over now, but a rather bittersweet ending.
3) Nykaa hit a fresh all-time high today as investors factored in a solid upcoming festive season. ICYMI - the company’s Q1 results were a bit of a mixed bag. While all metrics were solid, overall growth came slightly below expectations. Here’s hoping Nykaa kills it during Diwali!
Check out their charts below!
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