Tale of the Tape 

Howdy folks. Happy Friday!

Nifty (-0.9%) and Sensex (-0.7%) extended yesterday’s losses as tensions between India and Pakistan escalated. Midcaps (-2.6%) and Smallcaps (-2.5%) sunk like a stone. A whopping 453 stocks in the NSE 500 ended lower. Here’s the Nifty500 heatmap:

Except IT (+0.7%), all other sectors ended in the red. Real Estate (-2.8%) saw the most selling pressure, followed by PSU Banks (-2.2%) and Pharma (-2.2%).

SBI Life was the top Nifty gainer after a decent Q4 show. Meanwhile Maruti (-2%) fell after missing Q4 estimates. More details below.

Ather Energy’s IPO kicks off next week! Check out our analysis below to help you decide whether to subscribe.

Indigo cracked -4% after Pakistan closed its airspace to Indian airlines. Reports say the move will affect the airline’s international routes.

Tata Motors (-2%) and Mahindra & Mahindra (-1%) were in focus after reports said China halted exports of rare earth minerals to India. PS - these are needed to make EVs!

Waaree Energies tanked -6% after its six-month lock-in period ended. FYI - Up to 15 crore shares, 53% equity, is now eligible to be traded.

Vodafone-Idea was down -6% after 103 cr shares, 1.44% of equity, changed hands in multiple block deals. The buyers and sellers were not immediately known.

Q4 reactions. Axis Bank fell -4% over concerns of a softer growth outlook. Motilal Oswal fell -8% after reporting its first net loss in five years. PS - the loss is due to a fall in reported fair value changes so not a big concern.

Here are the closing prints:

Earnings
Earnings Roundup

SBI Life Insurance (+5%) was the top NSE 500 gainer after strong Q4 results. Its total ‘annualised premium equivalent’ -- which measures growth across different kinds of policies -- came in at Rs 5,450 cr beating estimates of Rs 5,022 cr! 

Another key profitability metric -- ‘value of new business’ (VNB) -- also outperformed at Rs 1,660 cr (vs est Rs 1,384 cr). VNB margins jumped +220 bps YoY due to a higher premium policy growth, outpacing peers like HDFC Life and ICICI Prudential.

To top things off, the management is guiding for “double-digit growth in sales” going forward. PS - Jefferies sees a +18% upside from current levels.

Here are its key stats:

• Net premium income:  Rs 23,860 cr; -5% YoY

• PAT: Rs 813 cr; flat YoY

• VNB Margins: 30.5% vs 28.15 YoY

SBI Life is +21% YTD.

Maruti Suzuki (-2%) Q4 results missed Street estimates! Sales grew just +4% YoY tracking sluggish demand. Higher raw material and greater expenses at its new Kharkhoda plant dragged down operating margins despite price hikes in Q4. This, in turn, resulted in a drop in profits.

In its earning release, the company admitted that the domestic market growth was “quite muted”. FYI - experts are waiting to see how Maruti’s first-ever EV, which is set to launch later this year, will do to pep up sales.

Here is its Q4 report card:

• Revenue: Rs 40,674 cr; +6% YoY (vs Est: Rs 40,747 cr)

• EBITDA: Rs 4,265 cr; -9% YoY

• EBITDA Margin: 10.5% vs 12.3% YoY

• PAT: Rs 3,711 cr; -4% YoY (vs Est: Rs 3,840 cr)

Maruti Suzuki is +4% YTD

Specials
Vijay Kedia Portfolio Changes

Who doesn’t want to know which stocks legendary investor Vijay Kedia is currently holding? In this video, we cover his top holdings and latest portfolio updates along with fundamental and technical views on the same.