Tale of the Tape 

Hello boys and gals. Markets were back in the green.

Nifty and Sensex recovered from the opening lows to end slightly higher. Midcaps (+0.6%) and Smallcaps (+1.3%) continued to outperform. The market breadth was extremely positive with over 3 stocks advancing for every loser. 

Most sectors ended in the green. Energy (+1.5%) gained the most; followed by Metals (+0.8%). Pharma (-0.6%) and Real Estate (-0.4%) saw some profit booking. 

Ola Electric was locked in a 20% upper circuit. PS - the stock is back above its IPO price. What’s fuelling this rally and should you buy it? Read our top story below. 

Siemens India gained +3% on strong quarterly results. Prestige Estates slipped -5% after a shock double downgrade by Morgan Stanley. More details below. 

Adani Group stocks continued their roller coaster ride. Adani Power was locked in a 20% upper circuit. Adani Green and Adani Energy Solutions were locked in a 10% upper circuit. 

Voda-Idea rallied another +11% today. PS- the stock is up +25% this week. Holy Sh!t. 

Hyundai was in focus after not one but two brokerage houses gave it an “overweight” rating. Morgan Stanley had the higher target price at Rs 2418 p/sh; +27% from today’s closing price. 

ZF Commercial tanked -14% after 11 lakh shares (5.7% equity) changed hands in multiple block deals. Reports indicate that promoter WABCO Asia was the seller. 

Listing gain. NTPC Green Energy closed at Rs 121.65 p/sh; +13% from its IPO price. 

Zaggle Prepaid was locked in a 5% upper circuit after signing a 7-year deal with MasterCard. 

M&M (+1%) launched two new electric SUVs BE 6E & XEV 9E starting at Rs 18.9 lakh (ex-showroom). Goldman Sachs sees a 20% upside from current levels. 

Ashoka Buildcon erased yesterday’s gains after the NHAI revoked one of their projects.

Talbros Automotive jumped +14% intraday after winning multiple new orders worth Rs 475 cr. For context, the company’s market cap is Rs 2,043 cr.  

Here are the closing prints:

Stock
Maal Laav!

Ola Electric was locked in a 20% upper circuit; highest single day gain in over 3 months. PS - after today’s massive jump the stock is back above its IPO price. Hurray! 

What’s popping? Firstly, Ola announced two new super affordable electric scooters. These are a pretty bare bones set of wheels but their main job is to take you from point A to point B. Nobody knows how good (or bad) they are just yet. Nor do we know if they are as easily combustible as their predecessor. cough Kamra cough. BUT, the biggest headline here is that they cost just 40K for the entry level model, making it the CHEAPEST electric scooter (excluding Chinese OEMs). IYKYK 😜

Jokes apart, this is a pretty big deal. EV penetration is at a mere 6% in India. One of the main reasons for this is the high upfront ownership cost. Ola has been working behind the scenes to address this issue with its in-house battery cell manufacturing. PS - EV batteries make up the largest chunk of the manufacturing cost at almost ~30%. Hence, it's not so much about the new launches itself but showcasing the company’s ability to scale up as they chase future profitability. Lastly, before I forget they also launched a portable battery/inverter to power your home electrical devices. 

Global brokerage firm Citi also gave Ola a big thumbs up. The company’s highly tech focussed business model, backward integration into battery manufacturing, robust product portfolio and industry leadership make it an attractive bet. Concerns around its after-sale service are justified but they are easily fixable over time, they added. Interestingly, Citi rates Ola above Bajaj and TVS within the broader 2W industry. That’s a big W. FYI - they have a 12-month target price of Rs 90 p/sh.  

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