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No Room On The Upside?

Tale of the Tape 

Good evening everyone. Markets were down biggy today. 🥺

Nifty and Sensex dropped sharply in the last hour to close near the day’s low. Weak global cues plus reports of an important announcement by the Finance Minister kept investors edgy. Midcaps and Smallcaps also saw deep cuts, down over 2% each. 👎

Not a single sector closed in the green. Real Estate (-2.6%) fell the most as investors booked profits. Autos (-2.4%) and Metals (-2.3%) added further weakness. 📉

Tech Mahindra bought a European IT services company, CTC for Rs 2,800 cr. The acquisition strengthens its presence in the fast-growing BFSI segment. Here’s more details. 💰

Prestige Estates (+3%) hit a new all-time high after Q3 sales +2x YoY to Rs 4,268 cr. 🏠

Maruti Suzuki (-4%) fell the most in nearly two months. Global brokerage firm CLSA sees 19% downside from current levels. 🙃

Ramkrishna Forgings (-3%) announced a 1:5 stock split. ✂️

Jubilant Ingrevia slipped 4%. Ace investor Rakesh Jhunjhunwala reduced his holding to 4.72% in Q3. 💸

Nazara Technologies (-3%) bought ad tech company Datawrkz for Rs 124 cr. ✅

Cryptos crept lower. Bitcoin and Ethereum slipped 2%-3%. Cardano (-3%) cooled off after yesterday’s big move. Solana, Ripple, and Doge also trended lower. 💔

Here are the closing prints:

Nifty 18,113 -1.1%
Sensex 60,754 -0.9%
Bank Nifty 38,210 -0.1%

Earnings Roundup 

Angel One rallied +5% intraday on strong results. The broking firm is one of the largest beneficiaries of India’s retail trading boom. Last quarter, Angel One added 13 lakh new customers. That’s a whopping 162% customer growth over the previous year! 🤯 Here are the key stats:

  • Revenue: Rs 597 cr: +94% YoY
  • EBITDA: Rs 234 cr; +1.2X YoY
  • EBITDA Margin: 27.5% vs 23.85% 
  • Net Profit: Rs 164 cr; +1.2X YoY

Narayan Gangadhar, CEO at Angel One said:

We have undertaken initiatives that have led to improved client acquisition and activation by developing new machine learning based models. Improved KYC and in-app journeys have eased client onboarding and navigation. I firmly believe that our razor-sharp focus on technology will eventually facilitate us to attain our long-term goal of market leadership.

Angel One is up +300% in the past year. 📈

Tatva Chintan Pharma slipped 9% after reporting weak Q3 numbers. Healthy demand boosted the topline growth. But, increased costs and lower sales of high-margin premium products ate into its operating income. 📊 Here’s its report card:

  • Revenue: Rs 105 cr; +31% YoY
  • EBITDA: Rs 23 cr; -6% YoY
  • EBITDA Margin: 22% vs 32% YoY
  • Net Profit: Rs 22 cr; +9% YoY

Going forward, the company is bullish about the demand outlook. But, improvement in margins and increased sales of value-added products will be crucial for the stock’s re-rating. 

Tatva Chintan is +1.4X from its IPO price. 😍


Overheard on Stocktwits

Harrisons Malayalam saw a big breakout in yesterday’s trade. Vaibhav Khandelwal caught the move early as always. For more amazing trade ideas, sign up to Stocktwits now. Here’s the link: https://bit.ly/3zL3xJ9


Numero Uno

Folks, we have the first IPO of 2022! AGS Transact Technologies’ IPO will open on Jan 19. The price band is fixed at Rs 166-175 per share. The company plans to raise Rs 680 cr from the markets. 💸

Founded in 2002, AGS Transact is one of the largest omnichannel payment solution providers in India. It provides a complete suite of ATM management services to banks. AGS also expanded into digital payment services and has the largest network of payment terminals (POS) at petroleum outlets. Its marquee clients include ICICI Bank, HDFC Bank, Indian Oil, and HPCL.😎

 Financial Snapshot:

  • FY21 Revenue: Rs 1,759 cr; -2% YoY
  • FY21 Net Profit: Rs 55 cr; -33% YoY

Cash is still the king in India. Industry estimates that 90% of transactions happen in cash. ATM business has continued to flourish even as digital payments grow in popularity. Going forward, the ATM cash management service market is expected to touch Rs 4,434 cr in FY27 (vs Rs 1,432 cr in 2021). 🏧

Investors may give the IPO a thumbs up on the company’s leadership position, huge growth potential, and reasonable valuations. But, loss in the first 5 months of FY22 and fears of Covid disrupting business may keep gains in check. Let’s see how this goes. 👍


Pulling In The Dough

IndMoney raised $75 million in a Series D funding round led by Steadview Capital and Tiger Global. PS, the fundraise is ongoing and the startup may pull in an additional $10 million. All the best guys! 😊

For now, the latest funding round values the startup at around $600 million. IndMoney will use the funds to upgrade its app, scale up its user base and launch new products like credit cards.💳 

Founded in 2019, IndMoney allows users to manage their finances and invest across different asset classes like US equities, insurance, and fixed deposits. It also helps users with wealth planning solutions using machine learning. 👨‍💻

Despite the retail investing boom, only 5% of India’s population invests in financial markets. This offers a huge runway for growth. Fun fact: Tiger Global is super bullish on retail investing and has also pumped funds into Upstox and Groww. 🚀


Earnings Highlights

  • Trident: Revenue: Rs 1,980 cr; (+52% YoY) | Net Profit: Rs 211 cr; (+88% YoY)
  • EKI Energy Services: Revenue: Rs 688 cr; (+55% QoQ) | Net Profit: Rs 161 cr; (+98% QoQ) 
  • ICICI Securities: Revenue: Rs 941 cr; (+52% YoY) | Net Profit: Rs 380 cr; (+42% YoY)
  • Rajratan Global Wire: Revenue: Rs 222 cr; (+39% YoY) | Net Profit: Rs 33 cr; (+1.2X YoY)

Calendar

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