Tale of the Tape 

Hola Amigos. Markets were down big! 📉 

Nifty (-0.8%) and Sensex (-0.9%) ended in the red for the second straight session. Midcaps (-0.3%) fell as well, but Smallcaps were flat. The advance-decline ratio was in favour of the bears (3:2). 🫠 

Most sectors ended in the red. Oil & Gas (-1%), IT (-1%) and Real Estate (-0.9%) saw the most selling pressure. Pharma (+0.6%) and Metals (+0.3%) witnessed some buying. 🐂 

How has Q4 worked out for India’s QSR stocks and Zomato? Read our story below to find out. 🍕 

Campus Activewear was the top gainer on the NSE 500 after solid Q4 results. Meanwhile, MTAR Technologies tanked on disappointing earnings. More details below. 📊 

Paytm, Mazagon Dock Shipbuilders and PNB Housing Finance saw big movements today. Check out their charts below to find out why. 🔥 

Hindalco (+4%) was the top Nifty gainer after its US subsidiary Novellis finalised its IPO price band. 🚀 

SBI Life Insurance (-3%) was down after reports said its bid to buy Bharti AXA Life fell through. 👎️ 

Suzlon Energy was up +5% after winning a 551 MW order from the Aditya Birla Group. PS - Nuvama also sees a +15% upside from current levels. ⚡️ 

Cello World rallied +4% intraday after it said it would raise funds via the QIP route. 💰️ 

Concord Biotech was up +4% after Kotak upgraded the stock; the brokerage sees a +11% upside from current levels. 🤑 

Results reaction. IRCTC dropped -5% intraday after its Q4 results missed Street estimates. Meanwhile, Brigade Enterprises rallied +5% intraday after its net profit jumped +3x. ✅ 

Here are the closing prints: 

Stocks
Slice of Profit

How has Q4 been for quick service restaurant (QSR) stocks? ICYMI - they’ve had an awful FY24 so far due to weak demand, sticky food inflation and stiff competition. With Q4, the tide hasn’t turned yet, but there is a clear pecking order. Here’s what it looks like: 📊

1) Zomato: Yes, we know that this isn't strictly a QSR stock. But it’s a big factor in QSR firms not doing that great. FYI - Zomato’s number of active restaurant partners JUMPED in FY24 (260k+ vs 210k in FY23). At the same time, all QSR firms saw a reduction in store count growth + market share loss. It’s not a coincidence that Zomato’s Q4 food delivery GMV was up +25% YoY. FYI - the stock is up +48% YTD. 🚀

2) Jubilant Foodworks: The clear winner of the QSR pack. Domino’s Pizza reported positive LFL (like-for-like) growth in Q4 after four straight quarters of decline. Its overall topline was up +24% YoY and even after accounting for one-offs, its net profit was decent too. It managed to retain margins, which the company attributed to stronger on-ground execution. PS - the stock is +18% over the last month! 🍕

3) Everyone else: It’s a weak picture all around. Devyani International reported Q4 losses, its margins slipped and same-store sales growth (SSSG) was negative across key verticals. Sapphire Foods reported a SSG decline of -3% YoY for its KFC biz and a whopping -15% YoY decline for its Pizza Hut vertical. The one (slightly) bright spot is Restaurant Brands Asia, which runs Burger King. While SSSG growth stood at +2% in Q4FY24 vs +8.3% in Q4FY23, it was able to boost margins and the bottomline with the help of its Indonesian biz. 🌏

Specials

The Telecom Battle ⚔️

Bharti Airtel is on fire! The stock is +68% in the past year to hit a new all-time high of Rs 1,407 p/sh. 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 on Bharti Airtel, covering both fundamental and technical analysis. Also, find out SEBI RAs’ views on the stock. 👇🏻

Earnings

Earnings Roundup

Campus Activewear (+16%) posted a solid set of Q4 results! Decent demand + a sharper distribution focus helped bump up the topline slightly. High-value product launches aided margins & the bottomline. FYI - the company’s ASP came in at Rs 636 for Q4FY24 vs Rs 632 for Q4FY23. It may not seem huge, but it's pretty darn good after the rough H1FY24 it had. 👟

Big Picture: Overall, a decent Q4 but not the greatest. The stock’s movement today was just initial relief after a rough Q2 and Q3. FWIW - most analysts still retain their buy calls, but point out that demand growth is still okay-ish at best. Brokerage Motilal Oswal also says competition intensity isn't going away and it will be a surprise if Campus retains its margins moving forward. 🥇

Here are its Q4 stats:

• Revenue: Rs 364 cr; +5% YoY

• EBITDA: Rs 66 cr; +16% YoY

• EBITDA Margin: 18.3% vs 16.4% YoY

• PAT: Rs 33 cr; +42% YoY

Campus Activewear is -18% over the last year.

MTAR Technologies’ (-11%) Q4 results were DISAPPOINTING! Decent demand across verticals led to a double-digit topline boost. However, lower operating leverage and delays in project execution took a massive toll on margins and the bottomline. 🤕

FYI - MTAR missed its full FY24 revenue and margin guidance. To add salt to injury, it also cut FY25 guidance. They now expect topline growth of 30%-35% (vs 45%-50% earlier) and EBITDA margins of 21%-23% (vs 26% earlier). ✂️

Here are its key stats:

• Revenue: Rs 143 cr; +21% YoY

• EBITDA: Rs 18 cr; -24% YoY

• EBITDA Margin: 12.7% vs 24.9% YoY

• PAT: Rs 5 cr; -53% YoY

FWIW - a lot of this was expected. MTAR had already warned of delays in clean energy orders and problems with its space vertical. But the end result was slightly worse than expected. Experts still remain upbeat about FY25, betting on a bounce back on Korean fuel cell shipments. 🤞

MTAR Technologies is -16% YTD.

Charts

Chartbusters

Here are three companies that saw big movements today:

1) Paytm hit an upper circuit today after reports claimed that the Adani Group wanted to buy a stake in the company. FYI - the news has been strongly denied both by Paytm and the Adani Group. That said, the report claims it's a direct transaction between Vijay Shekhar Sharma and Gautam Adani. Since VSS isn’t classified as a promoter, the stake sale technically doesn’t need either company’s approval! 👀

2) Mazagon Dock Shipbuilders soared +11% after a blockbuster Q4 performance. Its topline jumped 50% YoY, helped by robust demand from the GOI. Its net profit more than DOUBLED, helped by a jump in margins to 17% (vs 10% last year). What an insane Q4 show. 💰

3) PNB Housing Finance was under pressure after 17 lakh shares ( 2.7% equity) changed hands in a big block deal. FYI - reports say FIIs Asia Opportunities and General Atlantic Singapore Fund are the likely sellers. The floor price for the deal was at a 9% discount to Tuesday’s close. 🤝

Check out their charts below: 📈 

Links That Don’t Suck

🚀 Buy Airtel shares? BIG Targets on Bharti Airtel | Airtel share analysis| Airtel share news in Hindi 

💬 Stocktwits is hosting a free AMA with SEBI RA Aakash Jajoo. Click to ask

💯 Neither Adani, Ambani or Tata! Modi stocks is the biggest buzzword before election 

🎮 YouTube rolls out its new Playables games to all users 

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🚘️ Porsche reveals first-ever 911 hybrid sports car, starting at $164,900

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