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Lazy Wednesday

Tale of the Tape 

Good evening ladies and gentlemen. Markets were lazy after returning from the mid-week break. 🥱

Nifty and Sensex recovered from the lows to end with minor gains. Midcaps (-0.2%) and Smallcaps (-0.5%) remained weak. 👎 

Most sectors ended in the red. IT and Real Estate stocks fell ~1% each. Metals (+1.6%) hit a three-month high. 📈

Indian Hotels (-1%) hit a new all-time high on solid Q1 results. More details below. 💰

Chemical stocks broke out in trade. Chemcon Speciality, Fine Organics, and Fairchem Organics rallied between 14%-19% each. Check out their charts below. 🔥

JSW Energy (+3%) will buy Mytrah Energy’s renewable assets for Rs 10,531 cr. ♻️

Results reaction. IGL jumped 6% after Q1 results beat Street estimates. Sequent Scientific tanked 13% after reporting a net loss. 📊

Granules (-4%) will buy back 63 lakh shares at Rs 400 p/sh, +30% from today’s closing price. 💸

Paytm ties up with Piramal Capital to provide loans to merchants and small businesses. The stock closed down 1% tracking overall market weakness. 📉

Cryptos cooled off after hitting the upper end of the range. Bitcoin tumbled +3%. Ethereum slipped over 5%. 💔

Here are the closing prints:

Nifty 17,534 +0.1%
Sensex 58,817 -0.1%
Bank Nifty 38,287 +0.1%

Earnings Roundup 

Indian Hotels had the most insane quarter. The Tata-Group company posted the highest ever Sales, EBITDA, and Net Profit in Q1. Occupancy levels and average room rates (ARR) crossed the pre-Covid levels for the first time in +2 years led by increased travel demand. Key markets like Mumbai, Bengaluru, and Delhi recovered faster than the industry average. Here’s its report card: 📊

  • Revenue: Rs 1,266 cr; +3.7x YoY 
  • Net Profit: Rs 170 cr; vs net loss of Rs 277 cr YoY

Indian Hotels expects average room rates to trend higher thanks to strong demand. Foreign tourism (15% of total revenue) may see a sharp pickup in the seasonally strong Q3. They also signed 10 new hotels during the quarter. The stock cooled off after hitting a new record high as investors booked profits. Indian Hotels is +45% YTD. 🚀  

Big picture: Indian Hotels’ leadership position, healthy financials, and strong promoter backing make it an attractive bet, according to experts. But, doubts over the sustainability of earnings plus profit booking after the massive YTD rally are top concerns. Let’s see how this goes. 🤓


Chemical stocks are back on everyone’s buying list. But what’s changed? 🤔

For starters, most chemical companies have reported excellent Q1 results. Healthy topline growth aided by robust demand drove the outperformance. More importantly, operating margins have shown signs of bottoming out. Cool off in input costs, price hikes, and prudent cost control measures also boosted margins, said experts. ✌️

Several chemical companies are in a high growth phase right now. They are expanding into newer chemistries and niche segments. This diversification would de-risk their business model and accelerate earnings growth, said experts. Lastly, the risk-reward ratio has turned extremely favorable after the correction in the first six months of 2022. 😍

Zooming out: The Indian chemical industry is estimated to nearly double by 2025 to $304 billion. The China +1 strategy, strong domestic demand, and supportive Government policies are expected to drive growth. 🚀

Chemcon Speciality, Fine Organics, and Fairchem Organics rallied between 14%-19% each. Check out their amazing charts below. 📈

Stocktwits Spotlight

Here’s an interesting chart setup by Swapnil Kommawar on Stocktwits worth checking out. Add $CHOLAFIN.NSE to your watchlist and track the latest from our community. Here’s the link:

Earnings Highlights 

  • Tata Chemicals: Revenue: Rs 4,041 cr; (+33% YoY) | Net Profit: Rs 593 cr; (+1.1X YoY)
  • Fine Organic Industries: Revenue: Rs 748 cr; (+1.1X YoY) | Net Profit: Rs 157 cr; (+3.4X YoY)
  • City Union Bank: Net Interest Income: Rs 525 cr; (+17% YoY) | Net Profit: Rs 225 cr; (+30% YoY)
  • Delhivery: Revenue: Rs 1,795 cr; (+32% YoY) | Net Loss: Rs 399 cr;
  • Natco Pharma: Revenue: Rs 919 cr; (+1.2X YoY) | Net Profit: Rs 320 cr; (+3.2X YoY)


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