Scam 2022?

Tale of the Tape

Heya guys. Markets ended lower for a fourth straight week. 🤕

Nifty and Sensex hit a two-month low. Concerns over rising interest rates plus reports of fraud by Axis Mutual Fund executives dented investor sentiment. Midcaps (-1.8%) and Smallcaps (-2.5%) continued to bleed. The market breadth was extremely weak with over 5 stocks declining for every 1 gainer. 🐻

Except for Energy (+0.2%), all other sectors ended in the red. Real Estate (-3.6%) stocks fell the most. IT, NBFCs, and Metal stocks cracked over 2% each. 📉

TVS Motor reported better than expected operational performance in Q4. Bullish management commentary and outlook on new launches (incl EVs) are key triggers. More details below. 🏍️

L&T Infotech may announce the merger with Mindtree, according to media reports. 🤝

UPL dropped over 5% after a fire broke out at its key plant in Ankleshwar, Gujarat. 🚒

Phoenix Mills acquired the balance 50% stake in Classic Mall Development Co. for Rs 936 cr. 💸

Nazara Technologies will consider the proposal of a share buyback on May 13. ✌️

Jindal Worldwide bought Mumbai-based EV startup Earth Energy for an undisclosed amount. ⚡

LIC IPO was subscribed 1.3x on day 3. 🙌

Cryptos got dumped following a massive sell-off in US stocks. Bitcoin tanked over 9% to $35K. Ethereum fell 6%. Solana dove 12%. 🔻

Here are the closing prints:

Nifty	16,411	-1.6%
Sensex	54,835	-1.6%
Bank Nifty	34,591	-1.8%

WTF! Is Happening?

Axis Mutual Funds fired two fund managers – Viresh Joshi and Deepak Agarwal on allegations of front running stocks. 🕵️

Front running is an illegal practice by which a broker trades in a security based on inside information which may have a significant price impact. Details are still scarce at the moment but reports indicate that the fraud may run into a couple of hundred crores. Although we think it may be more than that. 🤨

Head trader and fund manager Viresh Joshi, the prime accused, enjoyed a lavish lifestyle. He is believed to be a huge fan of expensive sports cars *cough Lamborghini *cough* and has multiple properties in Mumbai’s posh localities. 🚨

Market regulator SEBI is reportedly looking into the matter and may order a detailed probe soon. Yo, Netflix are you reading this? 🍿

Earnings Roundup

TVS Motor posted solid Q4 results. Operating profit per unit rose 12% over the previous year despite production cuts and lower sales (-8% YoY). Also, margins were flat YoY even as raw material costs soared. A combination of price hikes, higher sales of premium motorcycles, and rising export contribution boosted the operational performance. 💰 Here’s its report card:

Revenue: Rs 5,530 cr; +4% YoY (vs Est: Rs 5,602 cr)
EBITDA: Rs 557 cr; +4% YoY (vs Est: Rs 560 cr)
EBITDA Margin: 10.1% (vs Est: 10%)
PAT: Rs 275 cr; -5% YoY (vs Est: Rs 283 cr)

Going forward, TVS Motor is confident of growing faster than the industry aided by easing supply constraints, robust demand, and new launches. The company will launch its first electric 3W and has already received an order for 2,000 units from the Ministry of Power. 🔋

TVS Motor is flat YTD.

Weekly Charts

Here’s a look at this week’s top Nifty 500 movers. Home First Finance took the pole position after gaining +11%. 🥇 Tata Chemicals jumped ~10% after strong Q4 results. Angel One crashed over 25%. Solara Active fell 24% after its Managing Director & CEO Rajendra Rao resigned. 🚨 Check out their charts below:

Earnings Highlights

Voltas: Revenue: Rs 2,667 cr; (+4% YoY) | Net Profit: Rs 183 cr; (-24% YoY)
Marico: Revenue: Rs 2,161 cr; (+7% YoY) | Net Profit: Rs 257 cr; (+13% YoY)
Sona BLW: Revenue: Rs 550 cr; (+2% YoY) | Net Profit: Rs 105 cr; (+76% YoY)
Happiest Mind Technologies: Revenue: Rs 301 cr; (+36% YoY) | Net Profit: Rs 52 cr; (+46% YoY)
Federal Bank: Net Interest Income: Rs 1,525 cr; (+7% YoY) | Net Profit: Rs 541 cr; (+13% YoY)