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Metals All The Way

Tale of the Tape

Good evening everyone and Happy Friday Jr. 😇

Markets were pretty volatile today. A sharp jump in retail inflation, mixed IT earnings, and weekly futures & options expiry restricted the gains. Midcaps (+0.6%) and Smallcaps (+0.7%) fared better. 👍

Most sectors ended in the green. Metal (+3.3%) stocks rose the most in nearly 3 months. Check out their charts below. Pharma (+1.6%) and Energy (+1.2%) stocks were amongst the top gainers. 📈

Wipro (-6%) posted its worst single-day loss in 15 months on weak earnings. Infosys (+1%) didn’t do much either despite the hike in guidance. 🙃

TCS’s (+1%) Q3 results were mixed but buyback saved the day. Mindtree (+3%) earnings beat Street estimates. Read more below 📊

Paytm (-5%) extended its losing streak to day 8. The stock closed at Rs 1,026 p/sh, down 53% from its IPO price. 🤯

Nazara Technologies (+4%) will consider raising funds on Jan 17. 💰

Tata Motors (+1%) said Jaguar Land Rover (JLR) sales dropped 38% YoY in Q3. Going forward, it expects production to normalize as chip supply improves. 🚗

ITD Cementation (+4%) won new orders worth Rs 4,600 cr. 🤑

TCNS Clothing jumped ~7%, most in over 6 weeks. Brokerage firm Emkay sees a 37% upside in the stock from the current price. 💸

The global crypto market rose +3%. Bitcoin and Ethereum rebounded from key technical support. Solana, Cardano, and Doge rallied between 5%-12%. ❤️

Here are the closing prints:

Nifty 18,258 +0.2%
Sensex 61,235 +0.1%
Bank Nifty 38,470 -0.7% 

Earnings Roundup

Tata Consultancy Services’ (+1%) Q3 results were mixed. Broad-based growth across all key verticals and geographies boosted topline growth. But, higher employee costs ate into profits. The company’s order book was flat over the previous quarter at $7.6 billion. Here are the key stats: 📊

  • Revenue: $6.5 billion; +3% QoQ (Est: $6.4 billion)
  • Net Profit: Rs 9,769 cr; +2% QoQ (Est: Rs 9,951 cr)

Here’s what the company had to say:
We are delighted to cross another important milestone in our journey, hitting the $25 billion revenue mark in the calendar year 2021. Our focus on growing organically and sustained investment in our talent has helped us power strong growth despite a challenging supply environment.

But, the real show stopper was the Rs 18,000 cr buyback announced by the company. TCS will repurchase shares from current investors at a price of Rs 4,500 each. That’s 16% higher than current levels. 📈

TCS is +24% in the past year. 

Mindtree reported earnings post-market which were ahead of estimates. Strong demand, record deal wins and prudent cost control measures drove the outperformance. 💪 Here are the key stats:

  • Revenue: $366 million; +4.7% QoQ (Est: $368 million)
  • Net Profit: Rs 438 cr; +2.3% QoQ (Est: Rs 416 cr)
  • Order book: $358 million

Going forward, management seemed confident of achieving industry-leading double-digit growth and +20% operating margins for FY22. Mindtree is up 170% in the past year. 💸

Red Hot

Metal stocks broke out in trade. Hopes of increased demand led by higher Government spending on infrastructure and real estate boosted sentiment. Additionally, the US Dollar has corrected over 300 basis points in the past month to sub Rs 74. FYI – Commodities get expensive when the value of the dollar falls. This is positive for the sector. ✅

Tata Steel (+6.5%) was the top gainer on the Nifty. Godawari Power (+7%) and JSPL (+6%) also saw healthy gains. Check out their charts below: 📈

Welcome To The Hood

LEAD School became the third startup to turn unicorn in 2022. We’re only in week two of the new year! 🙏

The Mumbai-based startup raised $100 million in its latest funding round, led by GSV Ventures and WestBridge Capital. The Series E funding valued the startup at $1.1 billion, +2x from its previous round. This makes it the sixth edtech startup to hit unicorn status after Byju’s, Unacademy, Eruditus, upGrad, and Vedantu. 🦄

Most edtech companies are focused on direct-to-student services like tuition and test preparation. But, LEAD is different in that sense. The startup trains teachers, designs curriculum, and supplies workbooks to +3,000 schools catering to over 12 lakh students. 👨‍🏫

LEAD will use the funds to focus on product, curriculum innovation and expand its footprint. Going forward, it aims to provide affordable education to +25 million students with an annual revenue run-rate of $1 billion. All the best guys! 👍