Tale of the Tape 

Good evening everyone! 👋 

Nifty and Sensex ended -0.5% lower, but managed to recover from the day’s lows. Midcaps (-0.3%) followed suit while Smallcaps (-0.9%) were hit harder. The advance-decline ratio was in favour of the bears (3:2). 📉 

Most sectors ended in the red. Auto (-2%), Metals (-1.6%) and PSU Banks (-1.4%) got beat up the most. Pharma (+0.4%) and FMCG (+0.3%) saw minor gains. 👍️ 

The UP government recently scored a massive point for hybrid cars. What does this mean for EVs and your favourite auto stocks? Read our top story below to find out. 🔍️ 

Citi sees this ad tech stock rallying +14% in the next year. More details below. 🚀 

RVNL, Asian Paints and Mankind Pharma all saw big movements today. Check out their charts below to find out why. 🔥 

Mahindra & Mahindra (-7%) was the top Nifty loser after it announced price cuts for its popular SUV models. 🤕 

Supreme Industries was in focus after Jefferies slapped a buy call on the stock; the brokerage sees +13% upside from current levels. ✅ 

Emcure Pharma had a solid market debut, ending the day +35% higher than its IPO price of Rs 1,008 p/sh. 💊 

Delhivery (-1%) was in focus after 2.34 cr shares (3.17%) equity changed hands in a block deal; reports say the Canada Pension Plan Investment Board was the likely seller. 🤝 

KIMS rallied +4% intraday after acquiring a Vishakhapatnam-based hospital. 🏥 

Here are the closing prints:

Spotlight
SEBI RA Spotlight

The popular thesis being put forward is that rural consumption will be on the rise. ICYMI - the new Govt will have a huge pot of money from the RBI to spend on populist schemes; a windfall that it can use without running up the fiscal deficit! Yes, FMCG is now the new golden goose. 😍

Financial Independence aka FIS is betting on Emami. The stock has given a bullish breakout on the weekly charts. With hopes of a healthy monsoon and rural-focused budget, the stock can hit 4-digits before the end of the year according to FIS. 📈 

FIS specializes in intraday, BTST and swing trades. They have been a SEBI-registered investment advisor for 6 years. FIS believes it is possible to be financially free through trading if one follows discipline and trading rules. Follow them for more amazing insights and add $EMAMI.NSE to your watchlist and track the latest from the community. 😎

Market
Advantage Maruti!

The ‘hybrid versus electric (EV)’ war is heating up in India, with major implications for auto stocks. ICYMI - Maruti rallied +7% yesterday after the Uttar Pradesh govt waived registration fees for hybrid car sales. For those who only read about EVs in our pink papers, we don't blame you. Here’s everything you need to know. 🔍

FYI - Hybrid sales made up 2% of total car sales in 2023 vs 6% for EVs. But more importantly, hybrids are catching up: their monthly sales beat EV sales for the first time in Sept, October and November 2023. This is surprising because hybrids are a LOT more expensive. 🚗

This is also why the UP govt’s decision is a BIG deal. Uttar Pradesh is the 2nd largest passenger car market and accounts for 10% of India’s total car sales. The latest relief measure announced could result in a hybrid car’s cost dropping by 10%. Experts also say it could trigger similar moves across states because hybrid buyers in neighboring states are likely to rush to UP for the registration savings. 💸

Fun fact: The GOI also wants to reduce GST on hybrids, but automakers like Hyundai oppose them! This brings us to the lines being drawn on the battlefield. This is how most companies are divided in the hybrid vs EV debate: ⚔️

• Pro-EV: Tata Motors, Hyundai

• Pro-Hybrid: Maruti, Toyota, Honda

These are rough categories, because while Maruti obviously is benefiting big time from hybrids, it also plans to launch an EV soon. Tata Motors though has said it’s only focusing on EVs for now. ⚡

Finally, there are firms like Mahindra which have no presence in either category. FYI - M&M was the top NSE 500 loser today, cracking -7% intraday, after it announced a ‘temporary’ price cut for some of its top SUV models. Sounds like they need to keep up with the game soon! 😣

TL;DR: No player can afford to ignore either EVs or hybrids. EVs have ruled the roost so far, but hybrids are quickly catching up. Place your bets carefully folks! 💰

Specials

5 Stocks To Buy In July - By SEBI RA

Markets are at their all-time highs but is it a good time to invest now? In this video, we cover 5 investment ideas by SEBI RAs which can deliver healthy returns even from current levels.

Stock

Investment Opportunity

Hey guys, today we’re gonna take a look at Affle (India). The stock hit a new all-time high today after rallying +37% in the past years. Is this a good entry point or should you wait for a dip? Here’s what experts have to say. 💯

For the unaware, Affle is an ad-tech platform that competes with giants like Google and Meta. The company’s app-centric, mobile marketing model touches over 3 billion connected devices and helps position it as an ‘alternative’ advertising partner. ✌️

What’s cooking? For the last two years, Affle has been in a rut: the fintech slowdown in the US, the GST blow on gaming apps (both big advertisers) and overall reduced consumer spending took a toll on growth + margins. But the good thing is that ALL of this is set to bounce back in H2FY25. The US market is starting to perk up (rate cuts later this year will help), and the GST council is reportedly considering providing relief to gaming firms. And overall tech spending is starting to rise again. FYI - analysts project Affle’s topline to grow at a 12%-15% CAGR! ✅

Beyond this, two key acquisitions will likely start paying off from this year. These are YouAppi and Jampp which give it an entry into high-growth markets (Latin America) and help it bolster its key gaming segments. 🎮

Finally, the company’s margins have taken a hit for a range of reasons: acquisitions, higher inventory costs and surging employee expenses. The company is in cost control mode and has also tamed inventory costs. All of this, experts say, should help boost margins to 19% in FY27 (vs 16% currently) 📊

TL;DR: The stage is being set for a recovery in the mobile ad market and Affle will benefit majorly. New acquisitions also will help it ride this wave. FYI - Citi has a target price of Rs 1,600 p/sh; +14% from current levels! 🚀

Charts

Chartbusters

Here are three companies that saw big movements today!

1) Rail Vikas Nigam rallied +11% intraday after announcing that it had bagged multiple orders worth Rs 390 cr. FYI - the first contract is for constructing six metro stations and will cost Rs 187 cr. The second is a Rs 202 substation project for the Southern Eastern Railway. Looks like rail stock euphoria isn’t going away anytime soon! 🔥

2) Asian Paints was up +3% after reportedly hiking prices by up to 1% across its product portfolio. FYI - reports also say rival Berger Paints did the same. Investors are happy because they were worried that the price war set off by Birla would take a big hit on margins. With a hike in prices, this looks like less of a problem now. 🎨

3) Mankind Pharma rallied +5% intraday after 37 lakh shares (0.9%) equity changed hands in a big block deal. Reports say PE firm Hema CIPEF was the likely seller. With markets at all-time highs, you can’t blame investors for looking for the exit door! 🤑 

Check out their charts below:

Links That Don’t Suck

💯 5 Stocks to Buy in July 2024 | 2024 Top Picks by SEBI RAs | Stocks to Buy Right Now

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