Tale of the Tape 

Howdy folks. Welcome back to the market of stocks!

Nifty and Sensex had a boring day, ending with very minor gains. But broader markets were more lively, with Midcaps (+0.8%) and Smallcaps (+0.7%) seeing solid buying. 338 stocks in the NSE 500 finished in the green.

Most sectors ended in the green. Real Estate (+2.2%) was the star of the day, followed by PSU Banks (+1.9%) and Pharma (+1.2%). IT (-0.2%) and FMCG (-0.1%) saw minor cuts.

In today’s issue of the Daily Rip, we cover Groww’s big IPO, Tata Consumer and Shriram Finance’s Q2 results, the top newsmakers of the day and more.

Honourable Mentions:

Vodafone-Idea zoomed +10% after the Supreme Court widened the scope of possible GOI relief. PS - sentiment was also boosted by reports PE firm TGH could pick up a stake in the company. Bank of Baroda (+5%) hit a new all-time high. Global brokerage firm HSBC sees a further +17% upside from current levels.

Check out the NSE 500 heatmap:

Earnings
Earnings Roundup

Shriram Finance (+6.5%) was the top Nifty gainer after a solid Q2 show! Lending income beat Street estimates helped by strong demand in its commercial vehicle & MSME verticals. But really, the NBFC was firing on all cylinders with even its smaller car & 2W segments jumping +22% YoY and 19% YoY respectively. All of this led to its Assets under Management (AUM) growing 16% YoY to hit Rs 2.8 lakh. Finally, asset quality was mostly stable, which is a bit of a relief after the slight deterioration in Q1.

Here is its Q2 report card:

• Net Interest Income: Rs 6,026 cr; +10% YoY (vs Est Rs 6,024 cr)

• PAT: Rs 2,315 cr; +125 YoY (vs Est: Rs 2,216 cr)

• Gross NPA: 4.57% vs 4.53% QoQ

• Net NPA: 2.49% vs 2.57% QoQ

It’s been a good quarter for many NBFCs and Shriram is no exception. Looking ahead, the biggest trigger is rumors of Japan’s Mitsubishi picking up a 20% stake in the company. We’ll have to see how it pans out. Experts say it could either fuel the next wave of growth or be a disaster if the promoters exit.

Shriram Finance is +34% YTD

Tata Consumer (+3%) Q2 results beat Street estimates! Solid demand in both its food biz (+19% YoY) and the beverage vertical (+12% YoY) helped boost the topline. FYI - beverages revenue was helped by a sharp drop in tea prices. But an overall bump in marketing expenses + coffee prices dragged down margins. Despite that, the company’s bottomline beat Street estimates!

Special shoutout: the packaged foods segment (noodles, chili oil etc) also grew +27% YoY which is good news for a company trying to hedge against commodity fluctuations!

Here are its key stats:

• Revenue: Rs 4,966 cr; +18% YoY (vs Est: Rs 4,782 cr)

• EBITDA: Rs 672 cr; +7% YoY (vs Est: Rs 630 cr)

• EBITDA Margin: 13.5% vs 14.9% last year (vs Est: 13.2%)

• PAT: Rs 397 cr; +11% YoY (vs Est: Rs 367 cr)

Tata Consumer is +30% YTD.

Specials
3 Stocks On Traders’ Radar

Wondering what stocks the pros are tracking? In our latest video, we reveal three stocks that SEBI RAs have recently added to their Stocktwits watchlist!