Tale of the Tape 

Hola Amigos!

Nifty and Sensex ended in the green, up +0.4% each. Midcaps (+1.2%) and Smallcaps (+1.2%) popped off. The advance decline ratio was in favour of the bulls (4:1).

Except NBFCs (-0.3%) and Oil & Gas (-0.2%), all other sectors ended in the green. IT (+1.7%) and Pharma (+1.1%) were the top gainers.

Despite its insane one-year rally, this water treatment stock could see another +25% upside. Find out more below.

P N Gadgil Jewellers IPO kicked off today. Check out our analysis below to help you decide whether to subscribe.

Snack makers, pharma firms and insurance companies all saw big movements today after the GST Council’s latest tweaks. Look at their charts below.

Divi's Laboratories (+5%) was the top Nifty gainer after the US govt banned American firms from working with some Chinese biotech companies.

IREDA was up +5% after signing pacts with SJVN and GMR for a hydro project in Nepal.

Tata Power jumped +7% after beginning solar cell production at its plant in Tamil Nadu.

GMR Airports Infrastructure (+2%) has acquired Fraport’s 10% stake in Delhi International Airport.

Order wins. HG Infra Engineering (+8%) soared after bagging a Rs 781 cr highways project in Gujarat. ITI rallied +8% intraday after bagging a Rs 300 cr order for street solar systems in Bihar.

Zaggle Prepaid Ocean Services gained +5% after entering into a service agreement with HDFC Ergo for its reward platform.

Here are the closing prints:

Stock
Make Money From Water

Va Tech Wabag has been on a red, hot streak! The stock has more than TRIPLED in the last year, easily beating any benchmark. We know what you’re thinking though: what the hell is going on here? 

What’s popping? There are three big positive triggers. The first is its ongoing expansion into the Middle East. FYI - the company won a massive Rs 2,700 cr order from Saudi Arabia authorities for a water desalination plant. This will help Va Tech grow its order book from Rs 10,676 cr as of June 2024 to a projected Rs 16,000 cr by the end of FY25. This should provide clear revenue visibility for the next 3-4 years.

Secondly, the company is leaving markets where profitability levels are low. Two months ago, it sold its Romania biz, following moves to exit Switzerland and Czech Republic as well. This strategy has helped boost overall EBITDA margins to 13.2% in FY24 vs 7.7% in FY21. PS - the company has guided for margins of up to 15% in the medium turn.

Finally, there’s the long-term bets that should start paying off. The first is its move to create 100 bio-CNG plants across India. This will let it convert its biogas (which it already produces) into CNG, which it can then sell. The other plan is to get into either the green hydrogen & semiconductor spaces!

Big Picture: Most experts say Va Tech Wabag is only half-way into its upcycle and will still see 15% and 20% CAGR growth for topline and bottomline over FY23- FY26. Key risks to watch out for include whether it will be able to pull off a successful pivot to the Middle East (nobody wants another Europe mess) and being able to squeeze more money from conservative GOI projects.

FYI - Axis Securities has a target price of Rs 1,700 p/sh; +25% from current levels!

Stocktwits Specials

We’ve curated a list of top stock picks by SEBI RA’s. In less than 5 minutes, we’ll walk you through these top picks that have a timeframe of ~12 months and also cover key fundamental, technical and news events surrounding these stocks. 

ICYMI – There are over 50 SEBI registered analysts on Stocktwits that share views on stocks and indices every single day. Sign up to Stocktwits to get free access to trade setups by SEBI RAs.