Hi,
Welcome to this weekly newsletter. In the current edition, we present how markets performed in the week gone by, major companies Q1FY22 Earnings and events of Primary Markets.
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Benchmark indices continue to be volatile. Nifty 50 stuck in-between range of 15500 to 15900 for last 2 months. Nifty 50 closes down 0.6% (93 Points) for the week.
Sun pharma - The pharma giant posted consolidated PAT of Rs 1,444 Cr this quarter vs Net Loss of Rs 1656 cr in Q1FY21. Revenue improved 30% YoY and 16% QoQ. It has repaid debt of $185 million in Q1 FY'22. Over the last 5 quarters, the company has repaid debt of about $765 million. The stock hit the upper limit after results on Friday.
CDSL - The depository reported its numbers on Saturday, consolidated PAT grew by 37% YoY & revenue grew by 51% YoY. CDSL became the first depository to register 4 crore Demat accounts in July 2021. The stock had rallied more than 55% in the first half of July before it was put on the ASM list where one can only take or give delivery of shares (No intraday trading allowed).
IPO Mania continues:-
July 2021 will be remembered for the number of Public issues and the huge listing gains. It was a beginning for new-age tech businesses as Zomato gets listed with a premium of 80% on 23rd July.
Aswath Damodaran, the writer of Little book of Valuation, posted his analysis and valuation of Zomato where the fair value comes at Rs 41 per share. You can check out his presentation here.
The biggest competitor of Zomato i.e. Swiggy raised $1.25 Billion from SoftBank’s Vision Fund II, making its valuation whopping around $5.5 Billion.
"Swiggy is going to remain private... Zomato’s listing doesn’t change the company’s strategy in any way” said Sriharsha Majety, CEO of Swiggy.
Tatva Chintan Pharma Chem got listed on Thursday with a premium of 110% (which nowadays is considered normal 🤯). The chemical company IPO was oversubscribed 180 times overall and 35 times for the retail portion.
Several IPOs are lined up in the month of August:-
IPO of Devyani International, operator of KFC & Pizza Hut 🍕, will open on 4th Aug in the coming week. It is planning to raise total funds of Rs 1798 cr. The company is among the largest operators of chain quick-service restaurants (QSR) in India.
Other issues like - Windlas Biotech, Exxaro Tiles and Krsnna Diagnostics are also set to open for the public this week.
Policybazaar plans IPO to raise Rs 6,500 crore. PB Fintech, the parent of SoftBank, is likely to file a draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI).
Beauty and fashion e-commerce company Nykaa is also all set to file its DRHP for IPO. Nykaa will raise around $400 million at a $4 billion valuation, says Moneycontrol.
Key events for Coming week -
Glenmark Life Sciences to get listed on 6th August.
One of the major events is - Interest rate decision by Monetary Policy Committee. It is unlikely that the repo rate of 4% will change.
FII continues to sell whereas DII are on a buying spree and support the markets
Automobile monthly sales data will be released this week, with a reduction in lockdown restrictions, auto sales are likely to recover.
US unemployment and payroll data will be released on coming Friday.
Global Events -
Amazon reported revenue of $113 Billion, posts third $100 billion quarter in a row, but still misses expectations. it closes 7% lower on Friday.
Robinhood Markets Inc, the US trading platform, got listed this week. The company’s share price closes 8.4% below its initial public offering price.
Microsoft is interested to invest in Oyo, one of India’s most valuable startups.
Tech stocks in China crack heavily. Check out the full story here.
That’s all for this week, don’t forget to like and share this newsletter.