March 14, 2023

It’s Only Tuesday!

Tale of the Tape

Hola Amigos. Markets hit a 5-month low. 📉

Nifty and Sensex closed down a fourth straight day. Weak global cues plus persistent FII selling added pressure. Midcaps (-0.6%) and Smallcaps (-0.9%) also dragged lower. The market breadth remained weak with nearly 3 stocks falling for every gainer. 😵‍💫

Not a single sector closed in the green. IT (-1.6%) and Metals (-1%) were the top losers. 💔

This smallcap hotel stock can give +30% returns from current levels. More details below. 🤑

PSU Banks got smoked for the second day in a row. Indian Bank dropped 9.5% intraday. Bank of India and Union Bank were down 4%-6% each. Check out their charts below. 🤯

Bharti Airtel increased prices of entry-level prepaid plans by 56% to Rs 155. 📱

Astral Ltd closed down 2% after turning ex-bonus. Shareholders will receive 1 bonus share for every 3 shares held. ✌️

Bandhan Bank is in talks to enter the insurance business, according to media reports. 💰

Divgi Torqtransfer Systems failed to light any fireworks on its Dalal Street debut. The stock closed at Rs 605 p/sh; +2% from its issue price. 😐

Cipla hit a 52-week low on reports of tax violations. 🚨

Cryptos continued to climb higher. Bitcoin rallied +8% to scale the $24K mark. Ethereum added another 4%. 🚀

Here are the closing prints:

Nifty	17,043	-0.7%
Sensex	57,900	-0.6%
Bank Nifty	39,411	-0.4%

What’s Popping?

Hotel stocks have seen a solid recovery in the past 12 months thanks to a sharp jump in travel demand. Lemon Tree Hotels is one company that stands to gain big time from this, according to experts. PS – global brokerage firm CLSA sees a +30% upside from current levels! 🔥

About the company: Lemon Tree Hotels is India’s largest hotel chain in the mid-priced segment with a 17% market share. They operate 8,497 rooms in 87 hotels across 54 destinations in India and abroad. 🛋️

What’s the deal bro? For starters, business is red hot currently. In Q3, Lemon Tree Hotels reported an all-time high net profit of Rs 49 cr! Also, key operating metrics like Average Revenue Rate (ARR) and EBITDA Margin hit new records last quarter. 💸

Going forward, the company is confident of a 12% CAGR growth over the next 5 years, which is a huge positive! Lemon Tree Hotels is also investing top $$$ to meet this increased demand. Fun fact – they expect to 3x their room inventory in the next 5 years! 📈

Lemon Tree’s aggressive expansion plans and robust financials provide ample confidence, said experts. The stock is +38% in the past year. Watch out for this one. 💯

PSU Bank Selloff

PSU Banks saw a savage correction as concerns over the financial health of regional banks in the US dented sentiment. Investors are selling banking & finance stocks globally following the collapse of SVB and Signature Bank in the US. PSU Banks, which historically have a bad reputation, for poor processes and weak corporate governance, got punished amid the bearish wave. 🤕

Indian Bank dropped 9.5% intraday. Bank of India and Union Bank were down 4%-6% each. Check out their charts below:

Stocktwits Spotlight

FMCG stocks have been under pressure as soaring inflation hurt demand. Kush Ghodasara has a bearish view on consumer giant HUL. Follow him for more amazing trade ideas and add $HINDUNILVR.NSE to your watchlist to track its performance. Here’s the link: https://bit.ly/3mS2rJe.