Broad Strokes, October 14, 2024
- 8sapience
- Infrastructure , Stocks , IPO
- 14 Oct, 2024
📈 Ashoka Buildcon Wins Major Contracts, Shares Surge 3%
- Cause: Ashoka Buildcon received Letters of Acceptance for two major projects from the Maharashtra State Road Development Corporation, worth ₹2,310 crore, involving bridge construction over Jaigad, Kundalika, and Bankot Creeks.
- Effect: The company’s shares rose 3.09% to ₹253.50 on October 11, following this news, continuing its upward momentum driven by several contract wins and market confidence in its infrastructure projects.
🎁 Wipro Considers Bonus Share Issue, Easy Trip Planners Approves 1:1 Bonus
- Cause: Easy Trip Planners announced a 1:1 bonus share issuance to reward shareholders, its third since 2022, while Wipro revealed plans to consider a bonus issue, with details expected on October 17.
- Effect: Wipro shares rose by 3%, reflecting investor optimism about the potential bonus. Easy Trip shares have surged, highlighting its strong financial health and efforts to boost liquidity.
📉 DMart Shares Plunge 9% After Disappointing Q2 Results
- Cause: Avenue Supermarts (DMart) reported an 8% year-on-year profit increase, falling short of estimates due to lower-than-expected revenue growth and competition from quick commerce platforms.
- Effect: DMart’s shares dropped 9.3%, allowing Trent to surpass DMart in market capitalization. Analysts have downgraded the stock, raising concerns about its ability to compete in the growing online grocery sector.
🔍 Reliance Industries Q2 Earnings Preview: Focus on Jio ARPU
- Cause: Reliance Industries (RIL) is expected to report an 11-13% year-on-year decline in net profit for Q2 FY25 due to a weaker performance in its oil-to-chemicals segment.
- Effect: While the company’s telecom division, Reliance Jio, is expected to provide some offset through a 6% rise in ARPU, overall earnings growth is predicted to be the slowest in 17 quarters, impacting market sentiment.
⚡ Premier Energies and Gensol Engineering Surge on Significant Order Wins
- Cause: Premier Energies secured orders worth ₹765 crore for solar modules and cells, while Gensol Engineering won a ₹186 crore contract for a rooftop solar project in Dubai.
- Effect: Premier Energies’ shares surged 10%, and Gensol Engineering’s shares rose 3%, both reflecting the growing demand for renewable energy and strong investor confidence in the sector’s growth prospects.
🚗 Ola Electric Faces Regulatory Scrutiny, Shares Fall 44% from Highs
- Cause: Ola Electric is under scrutiny from the Automotive Research Association of India (ARAI) for unreported price cuts on its S1 X model, risking government subsidies under the PM E-DRIVE scheme.
- Effect: Ola Electric’s stock has dropped 44% from its August 2024 highs, reflecting growing concerns over its regulatory and operational issues, with the potential for further downside.
🛠️ PNC Infratech Shares Surge 6% After Winning ₹2,040 Crore Contract
- Cause: PNC Infratech secured a ₹2,040 crore infrastructure development contract from CIDCO, focusing on road and flyover construction.
- Effect: The company’s shares rose 6.1%, benefiting from robust market confidence in its execution capabilities and strong year-on-year profit growth.
🌞 GQG Partners Invests ₹19,000 Crore in Adani Group Companies
- Cause: GQG Partners and Adani Group promoters increased their stakes in several Adani companies, investing over ₹19,000 crore during the September quarter.
- Effect: The investment has bolstered market confidence in Adani Group stocks, with analysts recommending buy ratings on Adani Enterprises, HDFC Bank, and Infosys, reflecting strong institutional support for these companies.
