Market Recap – Weekly Update (February 17, 2024)

by Kevin Jose

February 19, 2024

Market Recap: Weekly Update

(February 17, 2024)

YTD refers the Returns from January 1, 2024 till February 16, 2024

	Weekly Change	YTD
Nifty 22,040.70	1.1%	INR 1.42% USD 0.6%
Sensex 72,426.64	1.42%	INR 0.26% USD -0.57%
Bank Nifty 46,384.85	1.77%	INR -3.95% USD -4.75%
NASDAQ 100 17,685.98	-1.43%	6.9%
S&P 500 5,005.57	-0.42%	5.54 %

Index Valuation and Earning

Index	P/E Ratio	EPS
Nifty 50	22.8	968.4
Nifty Bank	15.4	3012
Nifty Financial Services	17.1	1198.6
Nifty IT	32.9	1169.2
Nifty Auto	26.2	781
Nifty FMCG	42.7	1252.2
Nifty Healthcare	41.5	290.4
Nifty Pharma	36	523.9
Nifty Consumer Durables	66.5	472.8

Exchange Rates, Brent Crude & Gold

	Closing Price	Weekly Change
USD/INR	82.99	-0.02%
EUR/INR	89.49	-0.07%
EUR/USD	1.8	0.19%
Brent Crude	81.93	1.24%
Gold (USD/OZ)	2,013.43	-0.55%
Gold (INR/10G) 24 caret	63,820 Delhi	-0.62%

FII and DII Weekly Trading Data

FII

Gross Purchases	68,344.37
Gross Sales	74,581.92
Net Purchases / Sales	6,237.55

DII

Gross Purchases	56,519.72
Gross Sales	47,788.12
Net Purchases / Sales	8,731.60

Key Market Updates

Nifty 50 top gainers: Mahindra & Mahindra (11.51%), Wipro (10.43%), UPL (7.17%), Bajaj Auto (6.75%), Bharat Petroleum (6.71%).
India’s foreign exchange reserves declined by $5.240 billion to $617.230 billion in the week that ended Feb 9.
NMDC Q3 Results: Net profit rises 62% to ₹1,470 crore, revenue up 45% YoY.
Gland Pharma Q3 results: Net profit down 17%, revenue up 65%.
M&M’s net profit for Q3 surged 61% year-on-year (YoY) to ₹2,454 crore. Revenue increased 17% YoY to ₹25,289.
NALCO Q3: Company reported an 83.6% year-on-year (YoY) jump in net profit to ₹470.6 crore. Revenue from operations increased 1.5% to ₹3,346.9 crore.
ACC Q3 FY24 results: Profit up 378% at Rs 527 crore. revenue from operations came at Rs 4,918.3, up by 7.44%

Startup, M&A Deals

Student accommodation platform Amber raised $21 million from Gaja Capital, Lighthouse Canton, and Stride Ventures.
Spiritual-tech startup AstroTalk raised $20 million from New York-based venture capital firm Left Lane.
Captain Fresh, a B2B fish and seafood tech startup, raised $25 million from British International Investment and Nekkanti Seafoods Group as well as a few family offices.
Pet care startup Supertails raised $15 million from RPSG Capital Ventures, Fireside Ventures, Saama Capital, DSG Consumer Partners, and Sauce VC.
Metalbook, a B2B startup, raised $15 million from Rigel Capital, Venture fund FJ Labs,Axilor Ventures, Foundamental, Stride Ventures, and Trifecta Capital.
Fintech startup Ayekart raised $6.5 million from Omnivore, Siana Capital, and Unleash Capital Partners.

Checkout the last week’s Market trends here: Market Recap (February 10, 2024)

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Economy & Market, Insights

Market Recap – Weekly Update (February 10, 2024)

by Kevin Jose

February 11, 2024

Market Recap: Weekly Update

(February 10, 2024)

YTD refers the Returns from January 1, 2024 till February 9, 2024

	Weekly Change	YTD
Nifty 21,782.50	0.55%	INR 0.24% USD -0.6%
Sensex 71,595.49	1%	INR -0.89% USD -1.74%
Bank Nifty 45,634.55	0.54%	INR -5.50% USD -6.31%
NASDAQ 100 15,990.66	2.41%	8.29%
S&P 500 5,026.61	1.4%	5.98 %

Index Valuation and Earning

Index	P/E Ratio	EPS
Nifty 50	22.5	967.7
Nifty Bank	15.2	3,006.2
Nifty Financial Services	16.9	1,195.5
Nifty IT	32.2	1,169.3
Nifty Auto	25.6	765.6
Nifty FMCG	43.1	1,250.1
Nifty Healthcare	41.8	284.7
Nifty Pharma	36.2	514.7
Nifty Consumer Durables	65.5	473.9

Exchange Rates, Brent Crude & Gold

	Closing Price	Weekly Change
USD/INR	83.01	0.03%
EUR/INR	89.49	0.32%
EUR/USD	1.078	-0.16%
Brent Crude	80.94	4.81%
Gold (USD/OZ)	2,024.47	0.29%
Gold (INR/10G) 24 caret	64,330 Delhi	0.2%

FII and DII Weekly Trading Data

FII

Gross Purchases	75,950.46
Gross Sales	81,821.91
Net Purchases / Sales	5,871.45

DII

Gross Purchases	67,086.11
Gross Sales	61,760.35
Net Purchases / Sales	5,325.76

Key Market Updates

Nifty 50 top gainers: SBI (11.64%), Bharat Petroleum (10.02%), Coal India (8.67%), Sun Pharma (8.34%), TCS (4.22%).
RBI keeps interest rates unchanged – Repo rate remains at 6.50%
Oil rises for fourth straight sessions on Gaza ceasefire rejection. The price crosses $80.
Divi’s Lab Q3 results: Net profit up 17% to Rs 358 crore. Revenue came in at Rs 1,855 crore up 8.6 percent.
LIC Q3 results: Net profit jumps 49% to Rs 9,444 cr. Net Sales at Rs 213,344.77 crore, up 8.32% Y-o-Y.
Tata Power Q3 net profit remains muted at Rs 1,076.12 crore. Revenue increased by 6.2 percent to Rs 15,294.13 crore.
Hero MotoCorp Q3 Results: Profit surges 51% YoY to Rs 1,073 crore. Revenue from operations grew 21% YoY in the quarter to Rs 9,724.

Startup, M&A Deals

Creator-focused platform Wishlink raised $7 million from Fundamentum and Elevation Capital.
Home automation startup Keus Smart Home Automation raised Rs 100 crore ($12 million) led by OAKS Consumer Fund.
Fintech startup focused on mobility segment OTO Capital raised $10 million from GMO Venture Partners, Turbostart, Prime Venture Partners, Matrix Partners, and 9Unicorns.
EV-focussed NBFC startup Mufin Green Finance raised Rs 140 crore ($16.8 million) from a group of family offices
EV startup River raised $40 million from Yamaha Motor Co, Al-Futtaim Automotive, Lowercarbon Capital, and Toyota Ventures.
Metafin, a cleantech-focused NBFC, raised $5 million from Prime Venture Partners and Varanium Capital.

Checkout the last week’s Market trends here: Market Recap (February 3, 2024)

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Indian Stocks

JTL Industries Ltd : A Strategic Investment for Long-Term Growth?

by Kevin Jose

February 6, 2024

JTL is an integrated manufacturer and supplier of steel tubes, pipes and allied products in India. The company has a network of more than 800+ Distributors and Retailers and 1000+ SKUs. The company manufactures and supplies various steel products, such as ERW pipes, galvanized pipes, and solar structures. These products are used in different sectors, such as water transportation, agriculture, infrastructure, solar power, heavy vehicles, energy & engineering, and more. The stock has provided returns exceeding 10 times over the past 3 years. Now, let us assess whether the stock will continue to deliver favorable returns in the future.

Key Clients:

Tata Power	IGL
Avaada	Ashok Leyland
Har Ghar Jal	Essar
Siemens	Elecon
Mahanagar Gas	Suzlon
HPCL	Thyssenkrupp

Revenue breakup: (Geography)

The company’s products are supplied to over 20 countries with various clients in the UK, Netherlands, Belgium, Ethiopia, and Australia.

JTL Industries Growth Drivers:

1. Capacity Expansion Initiatives:

Currently operating at full capacity, JTL Industries plans to expand its total installed capacity from 5.86 lakh tons to 10 lakh tons by F25, and further to 20 lakh tons by F27, enabling it to meet growing demand and capture market opportunities effectively.

2. Expansion of Value-Added Products:

Over the next two years, JTL aims to increase the proportion of value-added products to over 50%. This strategic initiative is designed to enrich the company’s product portfolio and boost margins derived from its offerings.

2. DFT Deployment:

JTL is planning to deploy DFT in its plants which will facilitate it to produce various sizes of hollow section without roll change, increasing efficiency and capacity utilization and also add additional SKUs.

3. Margin Expansion Strategy:

With a goal to double its margin by 2027-2028, the company is focused on enhancing profitability and operational efficiency.

4. Experienced Leadership Team:

Backed by a leadership team with over 35 years of collective experience, JTL Industries boasts a blend of seasoned professionals and dynamic young talents, ensuring a strategic vision and effective execution of growth plans.

5. Strong Volume and Revenue Growth Guidance:

The company has set aggressive volume growth targets. It aiming for 35%-40% growth in FY25 and FY26, and further accelerating to 40%-45% by FY28. This indicates a robust trajectory for expansion and market penetration.
JTL targets a revenue of 10,000 crores by the end of F27. This a six-fold increase over the next four years.

6. India’s Infrastructure Boom:

JTL stands to benefit from India’s ongoing infrastructure development, including projects in roads, airports, railways, real estate, water sanitation, affordable housing, and logistics.

The government plans to expand its total metro network to 2,660 km from present 690km by expanding the network in exiting cities and introducing the metro in new cities. This will create a lucrative opportunity for ERW pipes, as metro networks have a high density of stations where these pipes can be used.
Government of India plans to build over 70-80 airports by 2025 under its Udaan Scheme. For this AAI and the private sector will invest Rs 1 trillion in the next 2-3 years for this expansion.
Government allotted Rs. 70,000 crores towards Jal Jeevan Mission which aims to provide clean drinking water to over 180 million rural households by 2024.
Under PMAY, Government has a task of completing 4.5 million households, which will continue to drive demand for the next 3-4
Government plans to modernize & upgrade as many as 1,275 railway stations under ‘Amrit Bharat Station’ Scheme. To support this, In its last budget, the Indian Railways increased its total capex for upgradation by 240% yoy to Rs 130 billion.

Potential Risks

Approximately 90% of the company’s costs are attributed to HR coils, indicating a significant dependency on this raw material.
The structural steel tube sector is characterized by intense competition, with approximately 55% of the market being unorganized.

Financials:

	Compounded Sales CAGR	Compounded Profit CAGR
10 Years:	33%	65%
5 Years:	56%	62%
3 Years:	89%	108%

5 year view:

For JTL industries, we expect a 32% CAGR growth in EPS in the next 5 years.

Key reasons include expansion initiatives, the expansion of value-added products, and higher targets for sales and margin growth.

India’s infrastructure boom will also aid in the steady growth of the company.

We estimate the stock to grow by at least 2.4 times or grow by a CAGR of at least 18.8% in the next 5 years.

Disclaimer: This research is for informational purposes only and does not constitute investment advice. Please do your own due diligence and consult your financial advisor before making any investments.

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Economy & Market, Insights

Market Recap – Weekly Update (February 3, 2024)

by Kevin Jose

February 4, 2024

Market Recap: Weekly Update

(February 3, 2024)

YTD refers the Returns from January 1, 2024 till February 2, 2024

	Weekly Change	YTD
Nifty 21,853.80	1.43%	INR 0.56% USD -0.3%
Sensex 72,085.63	0.92%	INR -0.21 % USD -1.05 %
Bank Nifty 45,970.95	1.42%	INR -4.81% USD -5.61 %
NASDAQ 100 17,642.73	1.17%	6.64 %
S&P 500 4,958.61	1.34%	10.15 %

Index Valuation and Earning

Index	P/E Ratio	EPS
Nifty 50	22.5	970.8
Nifty Bank	15.1	3042.4
Nifty Financial Services	17	1170
Nifty IT	31.9	1170
Nifty Auto	26.8	723.4
Nifty FMCG	43.8	1259.8
Nifty Healthcare	40.7	279.6
Nifty Pharma	35.5	505.7
Nifty Consumer Durables	66.8	470.4

Exchange Rates, Brent Crude & Gold

	Closing Price	Weekly Change
USD/INR	83	-0.23%
EUR/INR	89.69	-0.1%
EUR/USD	1.08	-0.1%
Brent Crude	76.91	-6.7%
Gold (USD/OZ)	2,018.71	1.04%
Gold (INR/10G) 24 caret	64,795 Delhi	1%

FII and DII Weekly Trading Data

FII

Gross Purchases	94,124.38
Gross Sales	96,133.06
Net Purchases / Sales	2,008.68

DII

Gross Purchases	42,700.93
Gross Sales	32,998.97
Net Purchases / Sales	9,701.96

Key Market Updates

Nifty 50 top gainers: Bharat Petroleum (17.70%), Power Grid Corporation (12.87%), Adani Ports & SEZ (10.07%), ONGC (9.91%), Adani Enterprises (9.12%).
The Indian Government increased the windfall tax on petroleum crude to ₹3,200 per tonne from ₹1,700 per tonne.
SBI Q3 reults: Net profit – Rs 9,163.96, down 35.4% (YoY)
Net interest income: Rs 39,815.73, up 4.5% (YoY)
Tata Motors Q3 results: Net profit jumps 2x to Rs 7,025 crore. Revenue surged 24.9 percent on-year to Rs 110,577 crore.
IndiGo Q3 results: Profit more than doubles to Rs 2,998 crore. Revenue from operations increased by 30.26 per cent to Rs 19,452 crore.
Delhivery Q3 results: Logistics firm turns profitable, revenue jumps by 20% YoY to ₹2,194 crore.

Startup, M&A Deals

SaaS startup MoveInSync raised $15 million from Bessemer Venture Partners.
EV ride-hailing startup BluSmart raised $25 million from Zurich-based impact-focused investor responAbility Investments.
Logistics startup Wiz Freight raised Rs 125 crore ($15 million) from SBI Investment, Tiger Global, Nippon Express, Axilor Technologies Fund, Foundamental etc.
Grow Indigo: The agritech startup raised $8 million as part of a funding round that saw participation from stakeholders Indigo Ag and Mahyco.
p0: The AI-led cybersecurity startup raised $6.5 million from Lightspeed Venture Partners.

Checkout the last week’s Market trends here: Market Recap (January 27, 2024)

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Economy & Market, Insights

Market Recap – Weekly Update (January 27, 2024)

by Kevin Jose

January 28, 2024

Market Recap: Weekly Update

(January 27, 2024)

YTD refers the Returns from January 1, 2024 till January 26, 2024

	Weekly Change	YTD
Nifty 21,352.60	-1.07%	INR -1.74% USD -2.7%
Sensex 70,700.67	-1.12%	INR -2.13 % USD -3.09 %
Bank Nifty 44,866.15	-2.69%	INR -7.09 % USD -8.01 %
NASDAQ 100 17,421.01	0.62%	5.3 %
S&P 500 4,839.81	1.01%	3.12 %

Index Valuation and Earning

Index	P/E Ratio	EPS
Nifty 50	22.3	958.8
Nifty Bank	14.8	3023.3
Nifty Financial Services	16.8	1199.2
Nifty IT	30.7	1190.7
Nifty Auto	26.3	707.5
Nifty FMCG	44.3	1246.9
Nifty Healthcare	40.1	276.5
Nifty Pharma	35	501.5
Nifty Consumer Durables	68.4	453.9

Exchange Rates, Brent Crude & Gold

	Closing Price	Weekly Change
USD/INR	83.124	0.005%
EUR/INR	90.3	-0.1%
EUR/USD	1.085	-0.42%
Brent Crude	82.28	6.24%
Gold (USD/OZ)	2,018.71	-0.538%
Gold (INR/10G) 24 caret	64,160 Delhi	-0.14%

FII and DII Weekly Trading Data

FII

Gross Purchases	87,901.81
Gross Sales	100,096.19
Net Purchases / Sales	12,194.38

DII

Gross Purchases	42,700.93
Gross Sales	32,998.97
Net Purchases / Sales	9,701.96

Key Market Updates

Nifty 50 top gainers: Bajaj Auto (7.08%), Cipla (4.06%), Dr. Reddy’s Labs (3.91%), Power Grid Corporation of India Ltd. (3.5%), Bharti Airtel (3.27%).
India’s direct tax-GDP ratio rises to 15-year high of 6.11% during FY23
Vedanta Ltd’s consolidated net profit dropped by 18.30% to Rs 2,013 crore in the December 2023 quarter, while consolidated revenue rose 3.76% to Rs 34,968 crore.
YES Bank Q3 Results: PAT soars 4x YoY to Rs 231 crore, NII rises 2.4%.
PNB Q3 results: Net profit rises three fold to Rs 2,222 crore. Total income rose 16% to Rs 29,962 crore in the December 2023 quarter.
Tata Steel Q3 results: Net profit at ₹522 crore, revenue down 3% YoY.

Startup, M&A Deals

Ecofy, an NBFC that focuses on supporting green projects raised $10.8 million from FMO, a Dutch Entrepreneurial development bank.
Ola Founder Bhavish Aggarwal’s Large Language Model (LLM) startup Krutrim has raised $50 million from Matrix Partners and others at a valuation of $1 billion.
IBS Software acquires APS for $90 million, focuses on growth in hospitality sector.
Nazara Technologies picks up 10.77% stake in Kofluence for Rs 32.42 cr.
DMI group acquires BNPL startup ZestMoney in a distress sale deal.

Checkout the last week’s Market trends here: Market Recap (January 20, 2024)

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Economy & Market, Insights

Market Recap – Weekly Update (January 20, 2024)

by Kevin Jose

January 22, 2024

Market Recap: Weekly Update

(January 20, 2024)

YTD refers the Returns from January 1, 2024 till January 19, 2024

	Weekly Change	YTD
Nifty 21,583.15	-2.21%	INR -0.68% USD -1.7%
Sensex 71,499.65	-2.02%	INR -1.03 % USD -2 %
Bank Nifty 46,106.55	-4.09%	INR -4.53 % USD -5.5 %
NASDAQ 100 17,314.00	2.93%	4.65 %
S&P 500 4,839.81	1.01%	2.04 %

Index Valuation and Earning

Index	P/E Ratio	EPS
Nifty 50	22.8	945.8
Nifty Bank	15.4	2996
Nifty Financial Services	17.3	1189
Nifty IT	29.7	1194.2
Nifty Auto	26.4	706.2
Nifty FMCG	45.6	1226.7
Nifty Healthcare	40.2	272.3
Nifty Pharma	35	492
Nifty Consumer Durables	70.2	450.5

Exchange Rates, Brent Crude & Gold

	Closing Price	Weekly Change
USD/INR	83.12	0.3%
EUR/INR	90.73	-0.15%
EUR/USD	1.09	-0.37%
Brent Crude	77.75	-0.72%
Gold (USD/OZ)	2,029.63	-0.95%
Gold (INR/10G) 24 caret	64,250 Delhi	-0.43%

FII and DII Weekly Trading Data

FII

Gross Purchases	75,305.89
Gross Sales	97,732.97
Net Purchases / Sales	22,427.08

DII

Gross Purchases	64,612.01
Gross Sales	53,179.97
Net Purchases / Sales	11,432.04

Key Market Updates

Nifty 50 top gainers: ONGC (8.35%), Tech Mahindra (5.93%), Apollo Hospitals (5.64%), Bharat Petroleum (5.42%), Coal India (4.64%).
ICICI Bank Q3 Results: PAT jumps 24% YoY to Rs 10,272 crore, beats estimates. Its net interest income (NII) increased by 13.4% YoY to Rs 18,678 crore in Q3.
Kotak Mahindra Bank Q3 Results: PAT rises 8% YoY to Rs 3,005 crore, but trails estimates.
Reliance Q3 Results : Net profit rises 11% to Rs 19,641 crore. Consolidated revenues at Rs 248,160 crore, up 3.2% YoY.
Polycab India Q3 results: Net profit up 15% to Rs 416 crore. Net sales for the quarter stood at Rs 4,340.47 crore, up 16.8 percent from a year ago.
HUL Q3 Results: PAT rises just 0.6% YoY to Rs 2,519 crore, trails estimate. Revenue from operations fell 0.3% YoY to Rs 15,188 crore.

Startup, M&A Deals

Fintech startup FinAGG Technologies raised $11 million from Tata Capital, Blue Orchard, SIDBI, Prime Venture Partners, and Gray Matter Capital.
Wow! Momo Foods raised $49 million from Khazanah Nasional Berhad and OAKS Asset Management.
EV startup ALT Mobility raised $6 million from Shell Ventures, Eurazeo, EV2 Ventures, Twynam, UC Inclusive, Piper Serica, Pitchright, and LetsVenture.
Aquaculture technology startup AquaExchange raised $6 million from Ocean 14 Capital, Endiya Partners, and Accion Venture Labs.
Manufacturing automation startup Groyyo raised $5.4 million from Lighthouse Canton and Trifecta Capital.

Checkout the last week’s Market trends here: Market Recap (January 13, 2024)

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Indian Stocks, Insights

Gujarat Themis Biosyn Limited: A Niche Player in the API Market with Strong Growth Potential

by Kevin Jose

January 21, 2024

GTBL specializes in manufacturing active pharmaceutical ingredients (APIs), specifically fermentation-based products. The company holds a competitive advantage in this niche, with limited Indian competitors engaged in similar manufacturing processes. The company has exhibited substantial growth, delivering close to 20x returns in the last five years.

Product Profile:

Rifamycin-S:

This is an intermediate for manufacturing drug Rifampicin which is an Anti biotic used for the treatment of several types of bacterial infections, including tuberculosis, Mycobacterium avium complex, leprosy, Legionnaires’ disease, and digestive tract infections

Rifamycin O:

It is an intermediate for manufacturing drug Rifaximin which is an Anti biotic used for the treatment of traveler’s diarrhea, irritable bowel syndrome, and hepatic encephalopathy.

Revenue Breakup by Customer

Growth Drivers for GTBL

Change in Business Model:

GTBL transitioned from a contract manufacturing business to a manufacturing and sales model. This shift has improved margins, thereby increasing profitability. In 2019, their OPM was at around 18%. Currently its at 46%.

Product Diversification

Company is introducing of 10 to 12 new products in various therapeutic areas, such as cardiac and anti-infectives. This will reduces reliance on two key products, making GTBL a more diversified pharmaceutical company.

Capacity Expansion & Market Expansion:

Investment of approximately 200 crore rupees in upcoming projects, including an R&D lab, API block, and increased fermentation capacity. The company anticipates a growth rate of 25 to 30 percent in the coming years due to these investments.

As part of their future plans , they aim to expand their market presence. They believe that Rifaximin will open up certain parts of Europe in FY24.

Debt Reduction and Financial Health:

Consistent reduction in debt, with the company currently being almost debt-free. Also, company has a robust revenue growth of approximately 31.8 percent over the last five years and the profit grew at a CAGR of about 71%.

Potential Risks

Dependency on two major clients, Lupin and Optics Laboratories, which accounts for most of their sales.
Change in CEO with Mr. Jagadish O. Kauiaigi resigning and Mr. Tapas Guha Thakurata assuming the role on January 5, 2023.
Though company has plans of international expansion, currently company has exposure only to domestic markets.

Financials

5 year view:

For GTBL, we expect a 30% CAGR growth in EPS in the next 5 years.

Key reasons include the strategic investments, such as a new R&D lab, API block, and expanded fermentation capacity. Also company’s shift to a manufacturing and sales model has enhanced margins.

Further the launch of 10 to 12 new pharmaceutical products and targeted market expansion with special focus on exports would drive the growth for the company in the next 5 years.

FIIs/DIIs currently hold no stake in the company and hence more FII/DII investments are expected due to the solid performance of the company which will also aid in its growth.

We estimate the stock to grow by at least 3.3 times or grow by a CAGR of at least 27% in the next 5 years.

Disclaimer: This research is for informational purposes only and does not constitute investment advice. Please do your own due diligence and consult your financial advisor before making any investments.

You can invest in Stocks through Zerodha.
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Economy & Market, Insights

Market Recap – Weekly Update (January 13, 2024)

by Kevin Jose

January 14, 2024

Market Recap: Weekly Update

(January 13, 2024)

YTD refers the Returns from January 1, 2024 till January 12, 2024

	Weekly Change	YTD
Nifty 21,894.55	0.79%	INR 0.75% USD 0.1%
Sensex 72,568.45	0.92%	INR 0.45 % USD-0.23 %
Bank Nifty 47,709.80	-0.68%	INR -1.21% USD -1.88%
NASDAQ 100 16,832.92	2.93%	0.99%
S&P 500 4,783.83	1.7%	0.81 %

Index Valuation and Earning

Index	P/E Ratio	EPS
Nifty 50	23.2	937.8
Nifty Bank	16.6	2908.2
Nifty Financial Services	18.7	1153.6
Nifty IT	29.2	1194
Nifty Auto	26	707.1
Nifty FMCG	46.4	1243.9
Nifty Healthcare	39.9	273.8
Nifty Pharma	35	496.4
Nifty Consumer Durables	69.4	453.6

Exchange Rates, Brent Crude & Gold

	Closing Price	Weekly Change
USD/INR	82.87	-0.38%
EUR/INR	90.87	-0.07%
EUR/USD	1.094	-0.46%
Brent Crude	77.65	-0.45%
Gold (USD/OZ)	2,049.03	0.16%
Gold (INR/10G) 24 caret	64,255 Delhi	-0.41%

FII and DII Weekly Trading Data

FII

Gross Purchases	53,427.52
Gross Sales	57,328.79
Net Purchases / Sales	-3,901.27

DII

Gross Purchases	56,875.70
Gross Sales	50,017.23
Net Purchases / Sales	6,858.47

Key Market Updates

Nifty 50 top gainers: Hero MotoCorp (9.85%), HCL Technologies (7.54%), Infosys L (5.23%), Reliance Inds.(5.13%), LTIMindtree (4.87%).
US consumer price index increased 3.4% in the year through December, the most in three months according to government figures.
TCS Q3 Results : Revenue grows 4% YoY, Income rises 8%.
Infosys Q3 results: Net profit falls 7% YoY to Rs 6,106 crore.
HCL Tech Q3 results: Net profit rises 6.2% to ₹4,350 crore, revenue up by 6.5%
Wipro Q3 Results: PAT down 12% YoY to ₹2,694 crore, revenue drops 4.4% YoY.
HDFC AMC Q3 net profit up 32% to Rs 488 crore, revenue jumps 20%.
HDFC Life Q3 results: Net profit rises 16%, net premium income 6% up.

Startup, M&A Deals

Varthana Finance has secured $14 million from Blue Earth Capital.
Healthcare startup makeO raised $16 million from 360 ONE Asset, Eight Roads Ventures, Paramark Ventures, and the family office of Medlife founders.
Healthcare startup CureBay raised Rs 62 crore ($7.5 million) from Elevar Equity and existing investors.
B2B startup Karkhana.io raised $6.3 million from Arkam Ventures, Susquehanna Asia Venture Capital and Vertex Ventures Southeast Asia and India.
Edtech startup ConveGenius raised $7 million from UBS Optimus Foundation, Mount Judi Ventures and others.
Infosys announces acquisition of Insemi technology for ₹280 crore.

Checkout the last week’s Market trends here: Market Recap (January 6, 2024)

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Insights

IPOs are making a comeback in 2024

by Kevin Jose

January 10, 2024

Introduction:

The Indian Initial Public Offering (IPO) landscape has been a rollercoaster ride over the past few years. After a significant dip in 2022 and 2023, IPOs are back in focus in 2024, marking a resurgence in the primary equity markets. In 2022, the IPO market experienced a slowdown, with a 50% decline in funds raised compared to the previous year. The year 2023 continued this trend with a further 17.5% drop in IPO fundraising. The primary markets experienced a dry and slow first six months, only to witness a significant surge in new stocks going public in the latter part of 2023.

India IPO’s activity over the years

Investor sentiment was deterred by increasing volatility from rising geopolitical tensions, inflation and aggressive interest rate hikes. This weakened the stock markets, valuations and post-IPO performance. Because of tightened market liquidity, investors were more risk averse and favored companies that were able to demonstrate resilient business models in terms of profitability and cash flows. The Americas IPO activity sank to a 13-year low by volume and a 20-year low by value after a record-breaking 2021. Also Europe IPO proceeds were down 78%, affected by geopolitical turmoil.

Global IPO activity by IPO proceeds (Billion USD)

IPO Revival :

Q4 2023 witnessed a significant surge in India’s IPO market with 23 IPOs, marking the highest number for the October-to-December quarter in a decade. The following are the reasons for the positive outlook:

Economic Rebound: India’s GDP growth is projected to be among the highest globally in 2024, indicating a strong and resilient economy. This bodes well for businesses seeking capital to expand and thrive.
Stable Interest Rates & Lower inflation:
While still elevated compared to previous years, interest rate hikes seem to be slowing down. This is a result of lower inflation levels, creating a more predictable financial environment for companies and investors.
Anticipation of upcoming Indian elections has driven companies to expedite IPOs before February or March, leading to high demand, liquidity, and optimism.
Positive investor Sentiment: Easing global uncertainties and signs of market recovery, investors are returning to riskier assets, including IPOs. Additionally, India’s strong domestic investor base offers a reliable source of funds.

Due to the positive outlook, many companies to expected to launch their IPO’s in 2024. Some of the most anticipated Indian IPO’s of 2024 are listed below:

Brainbees Solutions (Firstcry’s Parent)

IPO comprises a fresh issue of equity shares aggregating Rs 1,816 crore and an offer for sale of more than 54 million equity shares.
SoftBank holds the largest stake in FirstCry, 25.5 percent, making it the primary shareholder
International Expansion: The company aims to establish modern stores and warehouses in Saudi Arabia through its subsidiary, FirstCry Trading, indicating a strategic move towards global market penetration.
Subsidiary Investments: Brainbees Solutions will allocate funds to invest in subsidiaries like GlobalBees Brands and acquire additional stakes in indirect subsidiaries, showcasing a focus on strategic expansion.
Diversified Fund Usage: The IPO capital will support various initiatives, including sales, marketing, technology, data science, acquisitions, and general corporate purposes, reflecting a well-rounded investment strategy.

DRHP Report: Brainbees_Solution_Ltd_DRHP.pdf

OLA Electric:

The company aims to raise ₹5,500 crore through a new equity share issuance, providing substantial capital for expansion, innovation, and market dominance.
Ola Electric, supported by SoftBank and Temasek, seeks to be the first Indian electric vehicle (EV) manufacturer to go public, marking a significant milestone in the country’s electric mobility sector.
The company acknowledges key risks, including limited operating history, potential quality issues, competitive market challenges, and dependency on key personnel.

DRHP Report: Ola Electric.pdf

OYO: ORAVEL STAYS LIMITED

Oyo has submitted preliminary documents for its IPO, anticipating a mid-2024 launch, with an expected fundraising of approximately $400 million.

Largest footprint in terms of hotel storefronts in India and SEA.
Second largest footprint in Europe in terms of home storefronts among full stack short-stay accommodation players, according to RedSeer.
Asset-light business model and a lean cost structure – the company does not own the storefronts listed on its platform
Full-stack technology platform.
Two flagship Patron applications – Co-OYO and OYO OS

DRHP Report:Oravel Stays Limited DRHP.pdf

Swiggy:

Swiggy, the food delivery giant, is set for a significant IPO in mid-2024, expected to be the largest by an internet company next year, targeting an issue size of $1 billion (INR 8,300 Cr).

Swiggy, gearing up for an IPO, appointed Rohit Kapoor from Oyo to lead its food delivery, emphasizing focused leadership.
Diversifying beyond food delivery, Swiggy now offers various services, including Instamart, InsanelyGood, Dineout, Mall, and Genie.
Swiggy aims for a public listing and is restructuring internally to close the gap in gross sales compared to rival Zomato.
Undergoing a significant reset, Swiggy adapts to an organizational shift toward cost efficiency and sustainability, with internal changes and reorganization.
To improve revenue, Swiggy introduced a platform fee on food-delivery orders, aligning with Zomato’s strategy. Investors anticipate execution improvements in the next two quarters for a successful IPO.

Pharmeasy

PharmEasy’s parent company API Holdings filed a DRHP with SEBI for an IPO worth Rs. 6250 crores.
PharmEasy plans to return to the market in 2024 with a public issue, considering its robust performance.
The company aims to deleverage its balance sheet before the IPO, already achieving EBITDA positivity in Q1FY24.
PharmEasy, with a focus on profitability, is set to go public, having around 20,000 shareholders and funds from the rights issue allocated for debt reduction and organic growth.

DRHP Report: PharmEasy – API Holdings.pdf

Conclusion:

With improved economic conditions, strong investor sentiment, and exciting growth sectors, 2024 has the potential to be a banner year for Indian IPOs. Companies across diverse industries are lining up to tap into the market’s renewed enthusiasm, offering investors a wide range of opportunities to participate in India’s dynamic growth story.

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Economy & Market, Insights

Market Recap – Weekly Update (January 6, 2024)

by Kevin Jose

January 7, 2024

Market Recap: Weekly Update

(January 6, 2024)

YTD refers the Returns from January 1, 2024 till January 6, 2024

	Weekly Change	YTD
Nifty 21,710.80	-0.09%	INR -0.09% USD -0.02%
Sensex 72,026.15	-0.3%	INR -0.3% USD -0.22%
Bank Nifty 48,292.25	-0.28%	INR -0.28% USD -0.204%
NASDAQ 100 16,305.98	-3.53%	-3.53%
S&P 500 4,769.83	-1.79%	-1.79%

Index Valuation and Earning

Index	P/E Ratio	EPS
Nifty 50	23.2	937.8
Nifty Bank	16.6	2908.2
Nifty Financial Services	18.7	1153.6
Nifty IT	29.2	1194
Nifty Auto	26	707.1
Nifty FMCG	46.4	1243.9
Nifty Healthcare	39.9	273.8
Nifty Pharma	35	496.4
Nifty Consumer Durables	69.4	453.6

Exchange Rates, Brent Crude & Gold

	Closing Price	Weekly Change
USD/INR	83.19	-0.07%
EUR/INR	91.16	-1.07%
EUR/USD	1.1	-0.27
Brent Crude	78	1.19%
Gold (USD/OZ)	2045.85	-0.82%
Gold (INR/10G) 24 caret	64,520 Delhi	-1.67%

FII and DII Weekly Trading Data

FII

Gross Purchases	48,156.61
Gross Sales	44,866.38
Net Purchases / Sales	3,290.23

DII

Gross Purchases	47,911.02
Gross Sales	55,207.52
Net Purchases / Sales	7,296.50

Key Market Updates

Nifty 50 top gainers: Adani Ports & SEZ (12.68%), ONGC (5.56%), Adani Enterprises (5.53%), Bajaj Finance(5.23%), Tata Consumer Products (3.33%).
Kay Cee Energy & Infra stock lists at 366% premium to IPO price on NSE SME.
The SME IPO of Kaushalya Logistics was subscribed 390 times at close.
India’s services sector growth surges to three-month high, cost inflation hits 40-month low.
Nifty Realty Index gained by 98% in 2023.
Inflation in the euro zone climbed to 2.9% in December, up from 2.4% fueling rate-cut debates.

Startup, M&A Deals

Dairy brand Country Delight raised $20 million from Temasek, Seviora Capital and Venturi Partners.
Wiz Freight raised $11.24 million from SBI Investments, Tiger Global, Nippon Express Fund, and Axilor Technologies Fund.
Captain Fresh raised $13.25 million from Nekkanti Sea Foods and Shakti Finvest.
Food and beverage chain VRO Hospitality raised $10 million from Axis Bank, Gruhas, UC Inclusive Credit, NB Ventures and angel investors.
Ansa Folding Carton acquires majority stake in Rich Printers for Rs117 crore.

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