Achievement Unlocked

Nifty Scales Mount 16K (Finally)

It’s done! After countless failed attempts, Nifty successfully crossed the crucial 16,000-mark. 😇  The index had been stuck in a narrow range for nearly 3 months. Technical analysts believe today’s big breakout should unlock further upside for the Nifty. 📈

Fundamentally too, there are multiple triggers to support this. The economy has seen a sharp turnaround post the easing of lockdown curbs. Resilient earnings and pick-up in vaccination also bode well for the outlook. ✅ Having said that, rising inflation and fears of a third-wave act as key risks for the market. 

So far the RBI has been focused on kickstarting growth. But should inflation rise further, the RBI may be forced to raise interest rates which is negative for equities. Plus the rapid spread of Covid’s Delta variant in several parts of the world is also worrisome. 👎 

Ideally, we all wish for markets to go up and dips to get bought. 😎 But, we don’t live in an ideal world. Keep this in mind before investing your hard-earned money.

Earnings Roundup

Dabur jumped ~4% from its intraday low on bumper results. 💪 The company beat estimates on both topline and bottomline. Volumes grew 34% vs an expectation of 17%-19%. 🤯 Operating margins remained steady despite higher raw material costs. Here are the key stats: 

• Revenue: Rs 2,612 cr (vs Est: Rs 2,420 cr)
• Net Profit: Rs 438 cr (vs Est: Rs 410 cr) 

Mohit Malhotra , CEO at Dabur said: 

We continue to post strong growth and market share gains across all key verticals like Health Care, Home Care, Personal Care, and Foods in Q1 2021-22. E-Commerce reported an over 100% growth and today contributes to 8.2% of the India FMG business. We continue to invest ahead of the curve in expanding our rural footprint. 

Dabur is up 15% YTD. 📈

Barbeque Nation’s (+5%) earnings improved over the previous quarter despite Covid-led disruptions. 😊 The company’s net loss narrowed to Rs 43 cr vs Rs 60 cr last year. Deliveries accounted for 50% of total revenue. The company plans to open 20 new stores in FY22. 🍝 Here are more details: 

• Revenue: Rs 102 cr vs Rs 9.8 cr (YoY)
• Net loss: Rs 43 cr vs net loss of Rs 60 cr (YoY)
• Same-store sales growth: 960% 

Kayum Dhanani, Managing Director at Barbeque Nation said: 

While this quarter was a similar situation to Q1 FY21 we were better prepared and our diversification strategy has helped mitigate the decline in revenues. We have transformed Barbeque Nation from a casual dining restaurant chain to a diversified food services company, focusing on building a strong delivery business and develop our digital assets.

Barbeque Nation is up 58% YTD. 💰

Hot Wheels

CarTrade Tech’s IPO will open on August 9th. The price band is fixed at Rs 1,585-1,618 a share. The company plans to raise Rs 3,000 cr from the markets. 💸

CarTrade is an online auto classifieds platform. The company helps users buy and sell new/used cars. 🚗 Its vision is to create a digital ecosystem which connects customers, automakers, dealers, and other stakeholders – much like “Amazon for Car Shopping”. 🛒 In Q1, the company reported 27 million unique visitors per month.

Financial Snapshot:

• FY21 revenue: Rs 250 cr; -16% YoY due to the pandemic
• FY21 earnings: Rs 101 cr; +3x YoY boosted by one-offs

CarTrade’s IPO comes on the heels of several startups charting a course to the capital markets this year. 🏃‍♂️ Shares of the company in the unlisted market are up 46%, as per reports. We have no doubt that the IPO will be a huge hit among investors. 🔥

Earnings Calendar

Be sure to know when your stocks report earnings. Here’s the earnings calendar: