Broad Strokes, August 19, 2024
- 8sapience
- BroadStrokes , Recommendations , CESC
- 19 Aug, 2024
Antfin to Sell Zomato Shares via Block Deal
- Antfin Singapore plans to sell a $408 million stake in Zomato through a block deal, offering at a 4.6% discount to the previous closing price.
- Zomato’s shares surged 6% to a new high of Rs 280 following an upgrade from UBS, which raised its price target to Rs 320.
- Zomato reported a 126.5-fold increase in net profit to Rs 253 crore and 74% YoY revenue growth to Rs 4,206 crore for Q1 FY25.
- Shares of Hindustan Zinc fell 21% over four days as Vedanta announced a stake sale.
IRCTC Faces Valuation Challenges
- IRCTC’s share price rose by 1.18% to ₹935.65, with a 73.78% return over three years.
- Despite 12% revenue growth in Q1 FY25, EBITDA margin fell short at 33.5%, leading to a ‘Reduce’ rating from Prabhudas Lilladher.
- Chairman Sanjay Kumar Jain emphasized growth in catering and e-catering services.
- TCS shares reached a record high of ₹4,493, buoyed by an 8.72% YoY profit increase.
Gold Approaches $2,500 on Rate-Cut Optimism
- Asian shares and gold prices surged amid optimism for U.S. interest rate cuts, with gold surpassing $2,500 an ounce.
- Expectations of a Fed rate cut in September rose following comments from Fed officials.
- Investors are closely watching Fed Chair Jerome Powell’s upcoming speech at the Jackson Hole Symposium.
- Concerns over Chinese demand pressured oil prices, with Brent crude falling to $79.39 per barrel.
Systematix Initiates Coverage on Patanjali Foods
- Systematix Equities initiated coverage on Patanjali Foods with a ‘Buy’ rating and a target price of Rs 2,259.
- Motilal Oswal upgraded Glenmark Pharma to a ‘Buy’ with a target of Rs 1,850.
- Jefferies maintained a ‘Buy’ rating on Voltas, raising its target to Rs 1,770.
- UBS lifted Zomato’s target price to Rs 320, reflecting strong growth in food delivery and quick commerce.
India-Focused Offshore Funds See Inflows
- Foreign portfolio investors withdrew ₹21,201 crore from Indian equities in August 2024.
- India-focused offshore funds and ETFs have seen consistent net inflows for eight consecutive quarters, totaling $37.9 billion.
- Indian companies are increasingly turning to international markets for fundraising.
- Focused funds have experienced outflows in seven of the past eight months.
TCS Shares Hit Record High
- TCS shares surged to an all-time high of Rs 4,493, marking a 7% increase over three trading sessions.
- TCS reported an 8.72% YoY rise in net profit for Q1.
- Shares of Trent Ltd rose 19% since its Q1 earnings announcement.
- Mazagon Dock Shipbuilders’ stock price doubled in three months.
CESC Shares Rise on Renewable Power Subsidiary
- Techno Electric & Engineering Company shares surged to a 5% upper circuit limit at Rs 1,729.25.
- Ola Electric’s shares jumped 10% to Rs 146, reflecting a 92% increase since its IPO.
- CESC saw its shares rise by 4.55% to Rs 176.65 after incorporating a wholly owned subsidiary focused on renewable energy.
Experts Recommend Stocks for Raksha Bandhan Gifts
- Financial experts recommend gifting stocks and mutual funds for Raksha Bandhan.
- Notable suggestions include Tata Consumer, ABB India, Reliance Industries, TCS, and Larsen & Toubro.
- GIFT Nifty indicates a positive market opening, with predictions of the Nifty rising to levels between 24,700 and 25,000.
- 17 stocks, including Aarti Industries and Piramal Enterprises, are under a futures and options ban.
