October 7, 2021

A New Partnership

Tale of the Tape

Good evening everyone and Happy Navratri! 😇

Markets were up in full glory after yesterday’s nasty fall. Nifty and Sensex closed up 0.8%. Midcaps (+1.8%) and Smallcaps (+1.2%) fared better. 📈

Barring Energy (-0.4%), rest all of the sectors ended in green. Real Estate (+6.2%) and Auto (+4.4%) stocks saw massive gains. 💪

Reliance Industries (+0.5%) will launch 7-Eleven stores across India. The first outlet will open on Oct 9 in Mumbai. 🏪 More details below.

Super strong demand. Titan’s (+10%) Q2 update blew past expectations. Sobha rallied +16% on record sales volumes. 📊 Read more below.

Tata Motors (+13%) hit a three-year high. Morgan Stanley upgraded to “Overweight” for the first time since 2017. They also bumped up the target price to Rs 448 p/sh. Better late than never. 🤑

Piramal Enterprises (+2%) approved the demerger of its Pharma business. ✌ Here’s the fine print.

Nazara Technologies raised Rs 315 cr from large investors. 💰 The stock closed up ~3%.

Fast and Furious. M&M (+5%) opened bookings for its XUV700 today. The company said it received 25,000 orders in less than 1 hour. 🚘

Life Insurance stocks were in focus today. As per the latest data, the industry reported a 22% YoY growth in September. 💸

Eight new stocks join the Futures and Options segment from October 29. Here’s the full list. 📈

Aditya Birla AMC allotment details are out. Check out here. 👍

Cryptos kept marching higher. Bitcoin and Ethereum rose +5%. Cardano was up 7%. Ripple gained ~4%. Solana was flat. ✅

Here are the closing prints:

Nifty	17,790	+0.8%
Sensex	59,678	+0.8%
Bank Nifty	37,753	+0.6%

Feed Me More

Reliance Industries will set up outlets of popular US brand, 7-Eleven, in India! The company will open its first store on October 9 in Andheri East, Mumbai. A full-blown launch will follow soon. 😀 That latest move comes hot on the heels of Future Group terminating its contract with the Texas-based company.

Isha Ambani, Director at Reliance Retail Ventures Limited said:
7-Eleven is among the most iconic global brands in the convenience retail landscape. The new pathways we build together with SEI will offer Indian customers greater convenience and choices within their own neighborhoods.

7-Eleven is a global convenience store chain. It operates, franchises, and licenses stores in more than 77,000 locations in 18 countries and regions. 🏪 7-Eleven is known for its iconic brands such as Slurpee, Big Bite, and Big Gulp. The company has also expanded into high-quality sandwiches, salads, side dishes, cut fruit, and protein boxes. food

What’s the deal bruh? The partnership with 7-Eleven will give Reliance further control over India’s fast-growing retail market. Why do we say so? 7-Eleven’s strong brand recall (especially in urban markets), differentiated product offerings combined with Reliance’s scale and execution track record provide ample confidence. 💪

But, it won’t be a cakewalk either. High operational costs and stiff competition from unorganized players (kirana stores) may burn a hole even in RIL’s deep pockets. Increased online food ordering is another threat to be aware of. 😮

Reliance Industries is +29% YTD. 📈

Speaking of tie-ups and partnerships, we just dropped the latest episode of Stocktwits & Friends. In this episode, we have Shashank Udupa with us who is an Entrepreneur, Investor, and Content Creator. He walks us through his life, how he got started with stocks and cryptos, why he always sticks to the top three cryptocurrencies, and much more.

Stocktwits & Friends is India’s first YouTube show sharing the journey of India’s best #traders and #investors. Watch here – https://youtu.be/M4iZ7_bscN4

Bottomline

Titan’s Q2 update absolutely blew away the Street. The Tata Group company reported strong demand revival across all segments. Revenue from its flagship jewelry business rose 78% YoY. Most existing stores were fully operational in Q2. Besides that, the company is also aggressively opening new stores. 💸

Strong consumer sentiment, festive demand, and softer gold prices may further accelerate earnings growth. Investors were pumped from the positive update and bullish outlook. The stock soared +10% to hit a new all-time high. The company’s market capitalization crossed the Rs 2 lakh crore mark for the first time. PS. Titan is ace investor Rakesh Jhunjhunwala’s top bets. 😉

Sobha Ltd rallied +16% after reporting record Q2 sales. Total bookings jumped +49% over the previous year to Rs 1,030 cr led by strong housing demand. The company sold a record-high 1.3 mn sq feet of residential property in Q2. Strong demand from Bengaluru, Gurugram, Pune, and GIFT city region drove overall growth. 🏠

Going forward, the company is confident of maintaining the earnings momentum. It cites new launches and robust festive demand to boost growth. Want to know what’s fuelling the rally in real estate stocks? Read here. ✌

Overheard On Stocktwits

Here’s an interesting chart setup by @Prashant on Stocktwits that might interest you. Add $AARTIIND.NSE to your watchlist and track its performance. Here’s the link: bit.ly/3Fl9Vcx

Growth Capital

Nazara Technologies (+3%) raised Rs 315 cr from large investors like GIC backed Gamnat Pte and Plutus Wealth Management. The company will issue a total of 1.4 million shares at a price of Rs 2,206 apiece. 💰

The company will use these funds to scale up its existing offerings spread across interactive gaming, Esports, and gamified learning. Nazara also plans to utilize the cash to acquire companies in other categories. 📊

Manish Agarwal, CEO, at Nazara Technologies Ltd said:
We are thankful to our investors for their strong endorsement of Nazara’s strategic vision… The investment from such institutional investors will act as a catalyst for the Nazara flywheel to operate faster across all business segments and will result in compounding of the shareholder value organically and inorganically at parent as well as at subsidiary levels.

Nazara is betting big on the nascent yet fast-growing gaming industry. The company acquired a 5.5% stake in digital entertainment company, Rusk Media. In August, Nazara also picked up majority stake in online skill gaming platform, OpenPlay. 🎮

The Indian mobile gaming industry is estimated to +3x to $6-7 billion by 2025. Multiple factors like increased smartphone penetration, cheap data prices, and a large young population (15-35 yrs age) may drive growth. But, regulatory uncertainty is a big overhang for the sector. 👩‍⚖️