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Tale of the Tape 

Good evening y’all. Markets ended in the red again. 🤦

Nifty and Sensex opened sharply lower on the US Fed’s comments. But, a swift rebound in the second half helped recoup majority of the losses. Midcaps (-1.2%) and Smallcaps (-0.7%) also ended lower. 👎

Most sectors closed down. IT (-3.3%) and Pharma (-2%) stocks got smoked. State-owned Banks (+5.2%) gained the most in a single day since September. Check out their charts below. 📈

Cipla’s (+2.3%) Q3 results beat Street estimates. Federal Bank’s (+4%) bullish commentary lifted investor sentiment. Read more below. 📊

Reliance Industries (-2%) is in talks to raise Rs 12,000 cr for its media business. Former Disney and Star India head Uday Shankar and James Murdoch are rumored to join. Here’s ET with more. 📺

Two more stocks – ABB India and Intellect Design Arena – will enter the Futures and Options segment from tomorrow. 👋 

JB Chemicals (+5%) will buy Hyderabad-based formulations company Sanzyme for Rs 628 cr. 💊

PNC Infra (+2%) won new orders worth Rs 2,337 cr from the UP Government. 💸

Adani Wilmar IPO was subscribed ~50% on day 1. Imagine Marketing, owner of BoAt, filed its IPO papers with SEBI. More details below. 🎧

Crypto rout continued. Bitcoin slipped 3%. Ethereum was down 2%. Solana, Dot, and Doge also declined between 3%-5% each. 😐

Here are the closing prints:

Nifty 17,110 -1.0%
Sensex 57,276 -1.0%
Bank Nifty 37,982 +0.7%

Earnings Roundup 

Cipla’s (+2.3%) Q3 results blew past expectations. Broad-based growth across key geographies like the USA, new product launches, and margin expansion cheered investors. Here’s its report card: 📊

  • Revenue: Rs 5,479 cr; +6% YoY (vs Est: Rs 5,342 cr)
  • EBITDA: Rs 1,231 cr; flat YoY (vs Est: Rs 1,164 cr)
  • EBITDA Margin: 22.5% (vs Est: 21.4%)
  • PAT: Rs 729 cr; -3% YoY (vs Est: Rs 704 cr)

Going forward, clean chit for its Goa plant from the USFDA and the launch of its new drug Lanreotide will be key triggers for the stock’s rerating. Cipla is +10% in the past year. ✔️

Federal Bank’s (+4%) Q3 results were a tad above estimates. CASA ratio hit an all-time high of 36.2%. Loans grew 12% YoY aided by strong demand from businesses. Lower bad loans boosted overall profitability. 💰 Here are its key stats:

  • Net Interest Income: Rs 1,539 cr; +7% YoY (vs Est: Rs 1,553 cr)
  • PAT: Rs 522 cr; +29% YoY vs Est: Rs 497 cr
  • Gross NPA: 3.1% vs 3.2% (QoQ)
  • Net NPA: 1.0% vs 1.1% (QoQ)

Shyam Srinivasan, MD & CEO, at Federal Bank told ET: 

It is an organic, structural growth, and every part of the business is growing. I see that repeating itself in Q4 and beyond as long as the Third Covid Wave impact is fairly moderate. I do believe that green shoots in the economy should play through and if it does, we will see our share gain even more. 

Now that’s what you want to hear. Federal Bank is +43% in the past year.💪


ChartBusters 

PSU Banks were in high demand. Strong Q3 results from banks, dirt-cheap valuations, and constant privatization rumors are fuelling the optimism. Union Bank, Canara Bank, and Indian Bank rallied between 8%-9% despite overall market weakness. 🤑 Check out their amazing charts below:


Overheard on Stocktwits

Auto stocks are showing strength amidst the ongoing sell-off. India’s largest carmaker, Maruti Suzuki (+2.3%) broke out of a Cup and Handle formation, which is a bullish chart pattern. This in turn could take the Nifty Auto index past its 2018 highs, according to Raj Sharma. Add  $MARUTI.NSE to your watchlist and follow Raj to track its performance. Here’s the link: https://bit.ly/3zL3xJ9


All Set To Sail

Imagine Marketing, the parent company of BoAt, filed its IPO papers with SEBI. The Delhi-based headphone maker aims to raise Rs 2,000 cr from the markets! 💸

The company’s co-founder and beloved shark Aman Gupta along with Sameer Mehta and PE firm South Lake Investment will offload Rs 1,100 cr of shares. The remaining Rs 900 cr will be raised from new investors. BoAt will mainly use this money to repay loans. 🏧

Reports indicate the D2C brand is targeting a $1.5-$2 billion valuation on listing, +6x from its previous round. *cough* Zomato *cough* 👀

Founded in 2016, BoAt is the largest D2C electronic brands in India. It manufactures a wide range of earphones, smartwatches, and fitness bands that are widely popular amongst the masses for their cheap pricing and premium look and feel. BoAt holds +30% of the wearable market in India and was the fifth-largest brand globally in the category, according to IDC. 🎧

BoAt’s IPO announcement comes at a very interesting time. Recently listed tech companies like Zomato, Nykaa, and Policybazaar have seen a sharp correction amidst all the interest rate chatter. Either way, we wish our favorite shark all the best for the future. 👍


Earnings Highlight

  • Torrent Pharmaceuticals: Revenue: Rs 2,108 cr; (+6% YoY) | Net Profit:Rs 249 cr; (-16% YoY)  
  • United Spirits: Revenue: Rs 2,884 cr; (+16% YoY) | Net Profit: Rs 291 cr; (+27% YoY)
  • Raymond: Revenue: Rs 1,871 cr; (+45% YoY) | Net Profit: Rs 100 cr; (+3.6X YoY)
  • Laurus Labs: Revenue: Rs 1,029 cr; (-20% YoY) | Net Profit: Rs 154 cr; (-44% YoY)
  • Colgate Palmolive: Revenue: Rs 1,271 cr; (+4% YoY) | Net Profit: Rs 252 cr; (+2% YoY)

Calendar

A ton of companies will post their Q3 results tomorrow… Here’s all the important earnings you don’t want to miss: