Tale of the Tape 

Howdy folks. Markets were back in the green!

Nifty and Sensex snapped their three-day losing streak; closing +0.6% each. Jio Financial (+4.5%) and Reliance Industries (+2%) were in the top 3 gainers on Nifty. Reports indicate that Jio will raise Rs 10,000 cr from promoters.

The rally was broad-based, with both Midcaps (+0.8%) and Smallcaps (1%) witnessing strong buying. Naturally, the overall market breadth was positive, with 359 stocks in the NSE 500 ending higher. FYI - we’re just two days away from Trump’s latest tariff deadline with no sign of an India-US trade deal (yet) so remain vigilant!

Not a single sector ended in the red either. Real Estate (+1.6%) was the top gainer, followed by Pharma (+1.4%) and Energy (+1.1%).

In today’s issue of the Daily Rip, we breakdown Q1 results of Waaree Energies and Asian Paints, NSDL’s highly anticipated IPO, trending charts and more..

Honourable mentions: 

L&T (+2%) won a mega Rs 15,000 cr+ order for its hydrocarbon business. Mazagon Dock was down -3% after its Q1 net dropped -35% YoY.

Check out the NSE500 heatmap:

Earnings
Earnings Roundup

Waaree Energies (+2%) posted a solid set of Q1 numbers! Strong demand across both domestic and export markets led to a jump in its topline. FYI - higher projected demand and a ramping up of its facilities allowed the company to hit its highest-ever quarterly module production of 2.3 GW.

Apart from that, cost cutting + operational tweaks boosted margins and profitability. Finally, Waree reported a robust order book of Rs 49,000-cr at the end of Q1 and a global pipeline of 100+ GW which provides healthy medium-term revenue visibility!

Here are its Q1 stats:

• Revenue: Rs 4,597 cr; +31% YoY

• EBITDA: Rs 1,169 cr; +83% YoY

• EBITDA Margin: 25.4% vs 18.3%

• PAT: Rs 773 cr; +93% YoY

Big Picture: A great Q1 for Waaree. Just what it needed considering sentiment had dipped in recent months due to Trump slashing clean energy subsidies. Experts say that even though it’s not showing up on the P&L sheet just yet, do keep a close eye for geopolitical headwinds.

Waaree Energies is +11% YTD.

Asian Paints (+2%) Q1 beat Street estimates. The domestic decorative paints business saw a volume growth of +3.9% YoY (vs Est: 2%-3%) aided by pickup in urban demand. However, overall revenue was flat due to a weaker product mix. Margins also saw a small hit, hurt by pricing pressures and higher marketing expenses. Finally, despite a small bump in other income, overall profits still fell YoY! A company statement admitted the gains from higher urban demand were eventually outweighed by the early onset of monsoons in June!

Here is its Q1 report card:

• Revenue: Rs 8,939 cr; +flat YoY (vs Est: Rs 8,835 cr)

• EBITDA: Rs 1,626 cr; -4% YoY (vs Est: Rs 1,600 cr)

• EBITDA Margin: 18.2% vs 18.9% last year (vs Est: 18.1%)

• PAT: Rs 1,117 cr; -6% YoY (vs Est: Rs 1,127 cr)

Big Picture: Make no mistake, this is a classic case of the market having low expectations and Asian Paints managing to beat them slightly. Everything else about the paint sector’s fundamentals sucks. Demand is showing no great improvement, competition is worse than over and continued price erosion is in the offing whether Asian Paints wants it or not.

Asian Paints is +4% YTD.

Specials
Eternal - Buy Now or Wait For Dip?

Eternal is trading at all-time highs after rallying +50% in the last 6 months. But is it still a buy at current levels or should you wait for a dip?

Check out our latest video where we break down all the key updates covering its latest Q1 results, industry landscape, earnings trend and more.