Tale of the Tape 

Howdy folks. Welcome back to the market of stocks!

Nifty and Sensex rallied ~1% each as the bulls fought hard to recover (almost) all of Friday’s losses. Broader markets saw buying too, with Midcaps (+0.9%) and Smallcaps (+0.4%) ending in the green. A cool 331 stocks in the NSE 500 ended higher. All eyes are on Trump and Putin’s summit later this week where -- knock on wood -- if all things go OK, could see India getting some relief on its rough tariffs. 

Not a single sector ended in the red. PSU Banks (+2.2%) led the rally, followed by Real Estate (+1.9%) and Auto (+1.1%). 

In today’s issue of the Daily Rip, we take a look at why Tata Motors was the top Nifty gainer despite a bad Q1, DOMS Industries’s sharp rally, BlueStone Jewellery’s IPO, biggest newsmakers and more.

Honourable mentions: 

PG Electroplast sank another -13% today after its guidance fiasco. HBL Engineering (+14%) was the top NSE500 gainer on strong Q1 results. NSDL (-2%) snapped its insane post listing bull run. PS - its still up 60% from its issue price!

Check out the NSE 500 heatmap:

Earnings
Earnings Roundup

Tata Motors’ Q1 numbers were rough! Domestic car sales fell -10% YoY on the back of weak demand. Lower luxury cars sales hurt margins and resulted in the company reporting its fourth straight quarter decline in profits. US tariffs hurt JLR’s April shipments and resulted in a $341 million hit to its earnings.

So if it was THAT bad, why was the stock up +3% and the top Nifty gainer today? Well, for starters, the Q1 numbers still beat Street estimates, which is a positive. There’s also a sense that JLR’s troubles are bottoming out. The tariff hit will fizzle out from Q2 onwards due to the EU-US & UK-US trade deals and JLR hiking prices. FYI - JLR has maintained its EBIT guidance of 5%-7% for FY26 which is good news.

Finally, there’s a sense that Tata Motors has seen enough of a correction. The stock is down -39% over the last year. Global brokerage firm CLSA sees a +23% upside from current levels.

Here are its key stats:

• Revenue: Rs 1.04 lakh cr -3% YoY (vs Est: Rs 1 lakh cr)

• EBITDA: Rs 9,724 cr; -35% YoY

• EBITDA Margin: 9.3% vs 10.4% last year (vs Est: 9.1%)

• PAT: Rs 3,924 cr; -63% YoY (vs Est: 3,912 cr)

DOMS Industries (+11%) soared after a solid Q1 show. The firm’s core stationery business grew +18% YoY, helping boost the topline. FYI - non-core verticals like babycare also saw a decent sales bump, helped by the recent Uniclan acquisition. On the flipside, higher raw material costs + employee expenses did bite into margins. But the topline boost still ensured a solid jump in profits.

Zooming out, DOMS is currently guiding for topline growth of 18%-20% in FY26, with an EBITDA margin of 16.5%-17.5%. PS - JM Financial has retained its buy call and sees +12% upside from current levels.

Here are its key stats:

• Revenue: Rs 562 cr; +26% YoY

• EBITDA: Rs 98 cr; +14% YoY

• EBITDA Margin: 17.5% vs 19.4% last year

• PAT: Rs 57 cr; +11% YoY

DOMS Industries is -6% YTD.

Specials
India’s Biggest Company Trading At A Discount

After giving negative returns in calendar year 2024, Reliance Industries is trading at a huge 15% discount to its 5-year average valuations. Can RIL reverse this underperformance? What are the factors at play and analyst recommendations? Find out in our latest YouTube video, all in under 5 minutes!