Tale of the Tape
Happy Monday guys. Go crush the week! 😎
Markets continue to march higher. Benchmark indices rose ~0.7% each. Midcaps (+1.6%) and Smallcaps (+0.9%) fared better. Two stocks advanced for every 1 loser. ✌
All sectors ended in the green. ✅ Real Estate (+4.7%) led the gains. Energy, Auto, and IT stocks advanced +1% each.
HDFC rebounded 2% from the lows on strong earnings. Britannia (+2.4%) delivered slightly better results despite a high base. Read more below. 📊
Auto sales saw a sharp uptick in July. 🚗 All automakers except for Hero MotoCorp reported healthy growth in volumes. Read more below.
Real Estate stocks continue their relentless surge. Oberoi Realty, Sobha, and Prestige Estates clocked gains of 6%-11%. Check out their charts below. 📈
PI Industries (+12%) bought Ind Swift’s API business for Rs 1530 cr. 💰
IRCTC jumped +6%. 🤑 Board to consider stock split on Aug 12.
NCL Industries rallied +13%. The company won orders worth Rs 1800 cr from Andhra Pradesh Govt. 💸
Details for India Pesticides IPO are out! Find out if you’ve received the allotment here. All the best. 👍
Cryptos cool off. Bitcoin slumped 5%. Ethereum was flat. XRP, ADA, and Doge fell ~3%. 😥
Here are the closing prints:
| Nifty | 15,885 | +0.8% |
| Sensex | 52,951 | +0.7% |
| Bank Nifty | 34,710 | +0.4% |
Earnings Roundup
HDFC’s (+1%) Q1 results beat Street estimates. Outstanding loans rose 7.5% YoY to Rs 5 lakh crore. Margins hit a 13 quarter high. 📈 Meanwhile, one-offs and higher provisions restricted bottomline growth. Here are the key stats:
- Net Interest Income: Rs 4,147 cr (vs Est: Rs 4,137 cr)
- PAT: Rs 3,001 (vs Est: Rs 2,605 cr)
Keki Mistry, CEO, HDFC said:
Disruption to business activity in the 2nd wave was lesser than last year. Demand for home loans continues to remain strong and disbursements have picked up with the unlocking of respective locations. The business has reverted to normalized trends in the months of June and July.
HDFC is down 4% YTD 😪
Britannia (+2.4%) delivered stellar results. Volumes rose 1% vs an expectation of -10%!! Prudent cost control helped sustain operating margins. 📊 Here’s more details:
- Revenue: Rs 3,404 cr (vs Est: Rs 3,158 cr)
- PAT: Rs 387 cr (vs Est: Rs 412 cr)
Varun Berry, Managing Director at Britannia said:
We continued to witness an increase in the prices of palm oil and crude. In light of hardship to the consumers owing to the pandemic, we were cautious on pricing but aggressive on cost efficiencies… We shall take calibrated price increases as things normalize.
Britannia is down 2% YTD. 😐
In The Fast Lane
The Nifty Auto index soared ~2%. A sharp uptick in July auto sales cheered investors. Easing lockdown curbs, strong pent-up demand, and low system-wide inventory aided volumes. 🚘 All automakers except for Hero MotoCorp reported growth over the previous year. Here’s how they performed:
Auto stocks have been under pressure. 👎 Persistent chip shortages, ever-increasing commodity and fuel prices have clouded the sector outlook. Going forward, fundamental investors will look for sustained demand improvement to turn bullish. 💪 Let’s see how this goes.
Through The Roof
Real Estate stocks continue their relentless surge. Oberoi Realty, Sobha, and Prestige Estates clocked gains of 6%-11%. Check out their charts below:
Technically speaking, the Nifty Realty index has broken out of a decade-long range. Technical analysts (i.e. chart gurus) view this as a super positive indicator. ✅
People are spending more time at home than ever before. Work-from-home is here to stay to some extent, and there’s only so much home improvement to do. Low-interest rates, cheap loans, and a duty reduction have further boosted demand. 🏠 Fun fact: property registrations in Mumbai hit a 10-year high in July.
Hungry For More
Fafda jalebi meets Footlong! Reliance Industries is in talks to buy Subway’s India franchisee for $200-250 million, as per ET. 💰
Reliance Retail operates retail chains across grocery, lifestyle, consumer electronics, and fashion. This deal would be their first step into restaurants, which is a bullish sign for the sector (i.e. Jubilant Foods). 🥪 Post-close, RIL would gain access to Subway’s +600 stores.
As per reports, QSR (Quick Service Restaurant) players are expected to grow 22% CAGR to Rs 52,000 cr over the next 5 years. 📊 Rapid urbanization and expansion of malls, young demography, and changing tastes are key growth levers. Note to self – if Mota Bhai is bullish, worth adding to your watchlist. 😊
Who’s down for some pudina chutney in their sub? 😋