Tale of the Tape 

Good evening everyone. Markets were volatile AF! 🎢

Nifty (-0.7%) and Sensex (-0.6%) nosedived in the final hour of trade to end lower for a 4th straight day! Midcaps (-0.5%) and Smallcaps (-0.3%) were also under pressure. The advance-decline ratio was in favour of the bears (3:2). 🐻

It was a sea of red across sectors. FMCG (-1.1%), Banks (-0.9%) and Auto (-0.8%) got beat up the most. 🤕

Vodafone-Idea’s 18k cr FPO kicked off today. Read our top story below to find out whether it’s a good bet. 🔍

Just Dial was the top NSE 500 gainer after reporting strong Q4 numbers. ICICI Lombard (+4%) had a solid Q4 as well. More details below. 📊

Nestle India, Mastek and Hitachi Energy all saw big movements today. Check their charts below to find out why. 📈

Infosys will report its Q4 earnings later today. Here are the key things to watch out for, according to Moneycontrol. 🤓

ABB India cracked 4% after ICICI Securities downgraded the stock to a sell; the brokerage sees a -16% downside from current levels. 👀

Sterling Tools jumped 7% after signing an EV components pact with South Korea's Yongin Electronics. 🤝

Jubilant Pharmova (+5%) hit a 52-week-high after the USFDA gave a stamp of approval to its Roorkee facility. ✅

JSW Energy (+4%) was awarded a Rs 120 cr recovery claim against the Tamil Nadu govt discom. 💰

Talbros Automotive was locked in a +5% upper circuit after its JV bagged a Rs 1,000 cr order from a European OEM. 💸

Here are the closing prints: 

Stock
Vodafone-Idea FPO Review

Vodafone-Idea FPO opened today for subscription! FYI - this is not only the biggest FPO ever in Indian stock market history, but it’s also basically VI’s last chance for survival. A lot riding on this, so let’s take a look. 🔍

First, some quick deets: The price band for the Rs 18,000-cr offer is fixed at Rs 10-11 p/sh. The stock is currently trading at ~Rs 13 p/sh, so the FPO is available at a decent 15% discount. That’s not too bad at all. But is that enough to go all in, selling your VI shares and subscribing to the FPO? 🤔

Tbh experts are divided. Market analyst Arun Kerjwail notes that “there is a 15%-20% profit margin to be made now” in the short-term. But others like Citi or CLSA say be careful, arguing that even short term gains could be overshadowed by long-term worries. 😣

The history of big FPOs in India offers a mixed picture. In the 2010s, a bunch of PSUs (PFC, NTPC, Engineers India) worked out decently in the short and long term. But, take Yes Bank’s Rs 15,000-cr FPO back in 2020. After the scandal, the new management launched an FPO that saw a ~95% subscription. But the stock hit a 10% lower circuit the day FPO shares were allotted and then slipped below the FPO price of Rs 12 p/sh the very next day. 🎢

That said, VI’s anchor book is pretty inspiring. It has raised Rs 5,400 cr from 74 investors including GQG Partners (yes the dude who made a killing buying the Adani dip), Morgan Stanley, UBS, and Fidelity. Finally, VI also got its latest upgrade, this time from IIFL Securities (target price: Rs 14 p/sh, +5% from current levels). Make of that what you will. 😇

Specials

4 Multibagger Stocks To Buy - By Jefferies

Are you on the lookout for multibagger stocks to invest in? Don't worry, we've got you covered!

In our recent video, we delve into four multibagger stock picks by Jefferies. With detailed reasoning on why one might consider investing in each of these stocks, we also share their respective targets and much more. Watch the video to learn more.

Earnings

Earnings Roundup

Just Dial (+13%) was the top NSE 500 gainer after a strong Q4 show! Healthy growth in its B2B biz helped boost its top line. Fun fact: the company’s active paid campaigns (a key portion of its top line) now stand at over half a million (583,690; +8% YoY). Beyond this, focus on monetisation + cost cutting resulted in a MASSIVELY bump up in margins and profitability. FYI - total unique visitors for Q4 came in at 171 million users (+7.4% YoY). 📊

Here are its key stats:

• Revenue: Rs 270 cr; +16% YoY

• EBITDA: Rs 71 cr; +111% YoY

• EBITDA margin: 26.1% vs 14.4% YoY

• PAT: Rs 116 cr; +38% YoY

Big Picture: Just Dial had two rough COVID years, but it bounced back in FY23. It now ends FY24 soaring back like nothing ever was wrong. A large part of this is down to its strategy of focusing more on the B2B segment rather than B2C. FYI - the management has guided for a 27% margin in FY25, arguing that it can be done without bumping up advertising expenses too much. 💯

Just Dial is +52% over the last year.

ICICI Lombard (+4%) posted a solid set of results! Strong performance by its motor and health insurance verticals helped boost premium collection and the top line. The company’s ‘combined ratio’, a key profitability metric, improved to 102.2% vs 104.2% last year. FYI - a ratio below 100% indicates an insurance firm earns more in premiums than it pays out in claims. Finally, its bottom line also got a nice bump as income from investments was up 24% due to recent market rallies. 🚀

Here is its Q4 report card:

• Net premium income: Rs 4,368 cr; +17% YoY

• Net profit: Rs 520 cr; +19% YoY

ICICI Lombard is +51% over the last year.

Charts

Chartbusters

Life comes fast, both for humans and stocks! Here are three companies that saw big movements today:

1) Nestle India: The stock fell -5% intraday, its worst single-day fall in 3 years! FYI - a Swiss watchdog found Nestle was selling baby food with HIGH sugar content in India and other developing countries. A bad health scandal can take years to overcome as Nestle knows well after the Maggi episode. 🚨

2) Mastek: rallied +20% intraday after being named a key supplier for the British defence ministry’s £1.2-billion digital and IT professional services framework! Mastek will work as a sub-contractor for a firm called QinetiQ and the revenue will spread out over the next four years. 💰

3) Hitachi Energy India: jumped +7% after Goldman Sachs initiated coverage on the stock. FYI - Goldman believes Hitachi is benefiting the most from the China +1 shift and has enough manufacturing capacity to deal with the demand. It has a target price of Rs 8,250 p/sh! 🔥

Links That Don’t Suck

💯 4 Multibagger Stocks to Buy | Stocks to Buy in 2024 | Jefferies Stock Picks 

💬 Stocktwits is hosting a free AMA with Neetika. Click to ask 

🙏 Who Is Priyamvada Natarajan, Indian Named In Time's Most Influential List 

💔 UPSC Aspirant’s Heart-Tugging Post About 12 Unsuccessful Attempts Has Left The Internet Emotional

⚽ Haaland falls short again when it matters in CL exit plus Arsenal's inexperience shows 

🤯 Watch out, your social media posts might cost you a job

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