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Tale of the Tape 

Happy Friday guys. You’ve earned this one! 😇 

Markets collapsed yet again in the final hour to extend their losses to day 6. Midcaps (+1%) and Smallcaps (+0.9%) had a rare green day. The advance-decline ratio stood at 2:1. ✌️

Most sectors ended in the red. Metal (-2%) stock hit the lowest level since Dec 2021. Autos (+2.4%) snapped their five-day losing streak. 📈

Tata Motors surged +8% despite mixed Q4 results. SBI slipped 4% after missing estimates. Read more below. 💰

Adani Power was locked in a 5% upper circuit. Global Index provider, MSCI added Adani Power and 3 others to its MSCI Global Standard India Index. ✅ will buy back shares at Rs 1,150 p/sh. That’s a massive +71% premium to Thursday’s closing price. 🚀

Dalmia Bharat (+3%) will invest Rs 2,600 cr over the next four years to expand its manufacturing capacity. 🏭

Delhivery IPO sailed through on the final day. 👍 

Cryptos pulled back after the recent rout. Bitcoin and Ethereum soared over 9% each. Cardano jumped +32%. 

Here are the closing prints:

Nifty 15,782 -0.2%
Sensex 52,793 -0.3%
Bank Nifty 33,121 -1.2%

Earnings Roundup 

Tata Motors’ Q4 results were mixed. Strong growth in domestic passenger vehicle and commercial vehicle business was offset by weakness in Jaguar Land Rover (JLR) segment. Tata Motors reported a net loss for the fifth straight quarter. But, losses narrowed over the previous year. Yet, the stock rallied +8%. Why so? 🤔 

Tata Motors expects global semiconductor supplies to improve from the second half of FY23. This is positive for the company’s flagship JLR business. Strong domestic demand in both passenger car and commercial vehicle segments plus new launches provides ample confidence. Tata Motors remains confident of turning net debt-free by FY24 despite a challenging business environment. 💪 Here are the key stats: 

  • Revenue: Rs 78,439 cr; -12% YoY (vs Est: Rs 80,928 cr)
  • EBITDA: Rs 8,742 cr; -31% YoY (vs Est: Rs 8,553 cr)
  • EBITDA Margin: 11.1% (vs Est: 10.6%) 
  • Loss: Rs 1,033 cr (vs Est: net loss of Rs 543 cr) 

Here’s what the company had to say: 

The demand remains strong despite geopolitical and inflation concerns. The supply situation is gradually improving, whereas commodity inflation is likely to remain at elevated levels. We expect performance to improve through the year as the China COVID and semiconductor supplies improve and aim to deliver strong EBIT improvement and free cash flows in FY23 to get to near net auto debt-free by FY24.

Tata Motors is -19% YTD. 📉

SBI’s (-5%) Q4 results missed Street estimates. Gross slippages rose 20% over the previous quarter to Rs 2,845 cr which is negative. Special Mention Account (SMA) or loans that may turn NPA also increased 16% QoQ to Rs 2,989 cr. Yikes. 🚨 Here’s its report card: 

  • Net Interest Income: Rs 31,198 cr; +15% YoY (vs Est: Rs 31,570 cr)
  • PAT: Rs 9,114 cr; +41% YoY (vs Est: Rs 9,928 cr)
  • Gross NPA: 3.97% vs 4.50% (QoQ)
  • Net NPA: 1.02% vs 1.34% (QoQ)

SBI is -6% YTD.

Taking The Lead

ICICI Bank overtook SBI to become the second most valuable bank in India! 🚀

What’s the deal bro? ICICI Bank has witnessed a massive turnaround under the leadership of Sandeep Bakhshi. In the 3.5 years since Bakhshi took over, ICICI Bank has not only returned impressive numbers but also restored its image. ICYMI, ICICI Bank’s former MD & CEO Chanda Kochhar was found guilty in a loan fraud case in 2019. 👀

Bakshi’s no-nonsense approach helped ICICI Bank drive industry-leading growth figures. In Q4, the private lender reported all-time high margins of 4.8%. At the same time, bad loans were down to their lowest levels in ~8 years. This was possible thanks to the bank’s vision of building a robust digital ecosystem. 📱

ICICI Bank pioneered digital banking solutions with its easy, instant, and collateral-free lending facility. They target first-time users with their best-in-class banking app and partnered with e-commerce giants like Amazon and Flipkart. 🛒

ICICI Bank shares have more than 2x from Covid lows. Yet, it is one of the cheapest private banks out there! FYI – Nomura sees a 33% upside in ICICI Bank from current levels. 🤑

Movers and Shakers 

Here’s a look at this week’s top Nifty 500 movers. Gujarat Gas (+12%) had the best week since May 2021 after strong Q4 results. 💸 Avanti Feeds (+9%) snapped its three-week losing streak. Privi Speciality Chemicals (-25%) extended its losing streak to week 4. Elgie Equipment (-20%) hit a 5-month low. 📉 Check out their charts below:

Earnings Highlights 

  • Larsen & Toubro: Revenue: Rs 52,851 cr; (+10% YoY) | Net Profit: Rs 3,621 cr; (+10% YoY)
  • RBL Bank: Net Interest Income: Rs 1,131 cr; (+25% YoY) | Net Profit: Rs 198 cr; (+1.6X YoY)
  • Aditya Birla Capital: Revenue: Rs 6,617 cr; (+18% YoY) | Net Profit: Rs 450 cr; (+20% YoY)
  • Poonawalla Fincorp: Revenue: Rs 512 cr; (-11% YoY) | Net Profit: Rs 119 cr;
  • Escorts: Revenue: Rs 1,861 cr; (-16% YoY) | Net Profit: Rs 202 cr; (-26% YoY)