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Tale of the Tape

Happy Tuesday everyone. Markets were up today. 😇

Nifty and Sensex rebounded in the last hour of trade to close near day’s high. Midcaps (+1.8%) and Smallcaps (+2.6%) snapped their five-day losing streak. 3+ stocks gained for every one loser. 💪

After a very long time, all sectors ended in the green. Real Estate (+3.6%) and Metals (+2.7%) bounced back after their recent weakness. 📈

Zee Entertainment jumped +4%. The Bombay High Court rejected Invesco’s appeal to call an Extra-Ordinary General Meeting (EGM). 👩🏻‍⚖️

Tech Mahindra (+2.6%) hit a new all-time high on strong results. Kotak Mahindra Bank’s (+3%) Q2 results beat Street estimates. Read more below. 📊

Cadila Healthcare (+2%) snapped its seven-day losing streak. The company’s Covid vaccine, ZyCoV-D received the green signal from the health ministry. Pricing is yet to be confirmed. 💉

Bharti Airtel (+1%) accepted the four-year moratorium on AGR dues. The company aims to redirect these funds to scale up its network infrastructure. 📱

Eicher Motors reappointed Siddharth Lal as Managing Director of the company for 5 years. ✅

Goa Carbon (+5%) resumed operation at its Bilaspur unit. 🏭

HG Infra rallied ~14% after bagging new orders worth Rs 2,300 from the National Highways Authority of India (NHAI). 🛣

Cryptos continued to climb higher. Bitcoin gained 0.5%. Ethereum rose +2%. Shiba Inu rallied +15%. 🤗

Here are the closing prints:

Nifty	18,268	+0.8%
Sensex	61,350	+0.6%
Bank Nifty	41,238	+0.1%

Earnings Roundup

Tech Mahindra (+2.6%) hit a new all-time high on strong results. 📈The IT services company beat estimates on all counts. Strong demand across key verticals and record deal wins drove the outperformance. 💪 Margins, unlike most of its peers, were also ahead of estimates. Here are the key stats:

Revenue: $1.47 billion; +6% QoQ (vs Est: $1.4 billion)
PAT: Rs 1,339 cr; -1% QoQ (vs Est: Rs 1,322 cr)
Deal wins: $750 million, +78% YoY

CP Gurnani, MD & CEO at Tech Mahindra said:

As we record our highest sequential growth in a decade, we remain committed to deliver longterm sustainable and profitable growth for the company. We have witnessed strong traction across all key markets as we invest in our digital capabilities through strategic partnerships.

Tech Mahindra remains confident of posting industry-leading growth. Margins too are seen steady around 15% mark despite cost pressures. 👍

Tech Mahindra is +60% YTD. 🤑

Kotak Mahindra Bank’s (+3%) Q2 results beat Street estimates. Advances increased 14% YoY led by a strong bounce back in Corporate and SME segments. 💸 Strong growth in non-lending businesses like trading and wealth management plus lower bad loans boosted earnings. CASA ratio improved to an industry high of 60.6%. (Side note – Here’s what the CASA ratio means and why it is important). Here’s a quick recap: 📊

Net Interest Income: Rs 4,021 cr; +3% YoY (vs Est: Rs 4,008 cr)
PAT: Rs 2,032 cr; -7% YoY (vs Est: Rs 1,792 cr)
Gross NPA: 3.2% vs 3.6%
Net NPA: 1.1% vs 1.3%

Kotak Mahindra Bank is +11% YTD.

Another One

Fino Payments Bank IPO will open on Oct 29. The price band is fixed at Rs 560-577 per share. The company plans to raise Rs 1,200 cr from the markets. 💸

Fino Payments provides banking and financial services in rural and semi-urban areas. It offers a diverse range of financial products that are primarily digital and have a payments focus. It has a unique delivery model which is a combination of both digital and physical. 😎 Fino Payments has an army of over 7 lakh merchants covering +90% of the districts in India. Each merchant serves the financial needs of its community and leverages tech and analytics to cross-sell third-party products. According to CRISIL, Fino Payments has the largest network of micro-ATMs in India and the 3rd highest deposit growth rate in FY21. 💯

Financial Snapshot

FY21 Total Income: Rs 791 cr; +15% YoY
FY21 Net Profit: Rs 21 cr; vs Net loss of Rs 32 cr

The company’s strong fundamentals, robust business model, and potential of acquiring Small Finance Bank (SFB) license are key positives. Let’s see how this one goes. ✌

Tesla’s Hot

Tesla became the sixth company in the world to hit a $1 trillion market cap. That’s right, trillion with a T! 🤯

What’s the matter? Hertz, one of the largest global car rental companies, announced that it will buy 1 lakh Tesla Model 3’s. The deal is reported to bring in a whopping +$4 billion in revenue for Tesla. It will be the largest ever purchase of electric vehicles! The vehicles will be delivered over the next 14 months and should be available in major U.S. markets and select locations in Europe starting this November. The order sent shares of America’s most valuable automaker soaring over 12.7%. 📈

The big jump in Tesla’s shares sent Elon Musk’s net worth up by $36.2 billion or Rs 2.7 lakh cr. That’s more than the net worth of D-mart owner Radhakishan Damani ($23 billion) and Industrialist Kumar Mangalam Birla ($12.1 billion) combined!!! 🙊

Tesla will clearly make inroads into the massive rental car market with this deal. But, there’s one market, even bigger, where it does not have its presence. India. Reports indicate that Tesla executives met with Government officials last month to discuss lowering taxes. Wonder what the reaction will be when it officially launches in India. To the moon, maybe? 😉