Tale of the Tape 

Hola Amigos! Markets continued to consolidate.

Nifty and Sensex ended flat after yet another boring range-bound trading session. Midcaps (+0.2%) and Smallcaps (+0.3%) didn’t move too much either. The advance-decline ratio was split evenly.

Most sectors ended in the green. Real Estate (+1.4%) and IT (+0.8%) were the top gainers. Media (-0.8%) and Energy (-0.6%) witnessed some selling pressure.

Greaves Cotton (+19%) hit a record high after Vijay Kedia picked up a stake. Read our top story to understand why the firm is in the middle of a sharp turnaround.

Mobikwik’s IPO kicks off tomorrow! Check out our analysis below to help you decide whether to subscribe.

Godrej Properties, Religare Enterprises and LIC saw big moves today. Look at their charts below to find out why.

Brokerage reactions. PB Fintech rose +3% after HSBC said it sees a +76% upside in its bull case. Swiggy (+1%) also climbed higher after CLSA started coverage with a “Buy” rating and target price of Rs 708 p/sh; +30% from current levels.

Indraprastha Gas announced its first-ever 1:1 bonus share issue.

Syngene International was in focus after promoters Biocon sold 80 lakh shares (2% equity) at Rs 825 p/sh

Waaree Energies gained +6% after securing a 1 GW solar module order.

Glenmark Pharma rallied +4% intraday after it said its blood cancer drug saw good results in initial trials.

Here are the closing prints:

Stock
Kedia Digs Greaves Cotton

Greaves Cotton rallied +18% after ace investor Vijay Kedia picked up a +0.5% stake in the company. Here’s what made Kedia write the big cheque. 

Let’s first take a quick recap to get some context about the company and its “lost decade”. Greaves Cotton went NOWHERE between 2014-2024. This is because its topline grew by <10% in the same period and its profitability also took a hit due to Covid. Also, even though it entered the EV (electric vehicle) biz, all that chaos around GOI incentives + HUGE initial investments meant that it did not get the re-rating other clean energy stocks saw.

So, what’s changed now? 

• Its diversification is showing benefits. The company’s core cash cow of electric diesel engines now account for less than 30% of its business. CNG has seen a nice bump and fuel-agnostic products like motors & controllers, cables & gensets have seen big traction. 

• The acquisition of rival Excel Controlinkage is also starting to pay off: exports jumped from Rs 53 cr in FY23 to Rs 182 cr in FY24!

• Margins for the core engineering biz have jumped from 4% to 13%, back to pre-Covid levels, with even further ceiling in the years ahead! 

• Finally there’s the EV vertical, which has been a drag. The company has managed to push through and its larger scale has allowed costs to come down by 7%-10% across products, which is a major positive! PS - Greaves has approved spinning off its Electric Mobility division in a new IPO which will unlock MAJOR value across the board (and keep both critics & supporters happy!) 

TL;DR: Greaves Cotton had an awful last decade. But things are turning around, helped by diversification + acquisitions and its EV push.

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What Next For Adani Stocks?

Adani Group stocks have been super volatile recently following the bribery allegations. But, the storm seems to have passed after a series of statements and clarifications by the Group. Does that make it an opportunity to buy Adani stocks or should you avoid catching a falling knife? Check out our latest video to know more.