Monday, 16th May 2022

The battle for the stake in Gujarat Ambuja has finally been sealed with Adani group emerging the winner. Adani will pay $10.5 billion or Rs.81,300 crore for the 63.2% stake that Holcim holds in Ambuja Cements. In addition, Holcim also holds 4.48% in ACC while Ambuja owns 50.05% in ACC. Post this deal, Adani will make an open offer to non-promoter shareholders to acquire 26% of these companies. At the end of the deal, Adani will emerge as the second largest cement player in India with the capacity of nearly 65 MTPA.

D-Mart reported 7% increase in standalone net profits at Rs466 crore for Q4FY22. Revenues for Q4 were up a robust 18% at Rs8,606 crore. During the quarter, the company had faced a disruption due to the Omicron wave which resulted in sales tapering. D-Mart has a total of 214 stores that are older than 2 years and these stores reported 16.7% yoy sales growth. In FY22, D-Mart added another 50 stores. D-Mart has an omnichannel approach and will offer ecommerce and brick-and-mortar experience simultaneously.

Zydus Lifesciences (ex Cadila Healthcare) has pioneered the launch of a new class of the “Bemdac” drug in India to treat uncontrolled LDL cholesterol. People with uncontrolled LDL cholesterol ran a high risk of cardiovascular diseases. Bemdac will go a long way in giving them relief. There are about 112 million adults in India suffering from this problem, and more significantly, half of them are intolerant to statin therapy. Zydus has a cardiac care portfolio of Atorva, Clopitorva, Zyrova and Pivasta and Bemdac enriches this list. 

World markets are going through the worst losing streak since the global financial crisis of 2008 with more than $11 trillion wiped out from global markets. NASDAQ has fallen more than 30%. Analysts expect the global markets to fall further on high inflation, central bank hawkishness and weak growth. While some are seeing pockets of value, most analysts remain sceptical about value traps. The global benchmark, MSCI ACWI, has fallen 6 straight weeks. Amid fears of tepid GDP growth, defensive stocks are in heavy demand. 

Paytm has started FY23 on a sound footing with lending business touching Rs.20,000 crore and device deployment beyond the 32 lakh mark. Loan growth may appear impressive, but it is on a very small base. 

The monthly transacting users (MTU) came in at 7.35 crore in April, up 44% yoy. If one looks at the gross merchandise value (GMV) processed through Paytm in April 2022, it was up by an impressive 102% yoy. However, the stock price of Paytm continues to languish nearly 70% below the IPO price of Rs.2,150/share.

Foreign portfolio investors (FPIs) pulled out Rs25,200 crore from Indian equities in the first half of May 2022, showing little respite. FPIs have been worried about Fed hawkishness, rampant inflation and the resurgence of COVID in China. If one combines equity and debt, foreign investors have sold nearly Rs2.10 trillion since the start of October 2021. Apart from India, even the other emerging markets like Taiwan, South Korea and the Philippines have witnessed outflow in May, on clear risk-off approach by the FPIs.

Escorts, a major player in the farm machinery and construction equipment sector, has lined up capex of Rs400 crore for FY23. This will be allocated towards new product introductions and enhancing production capacity. Escorts has also started exporting electric tractors to the US and Europe. At the same time, the company will also work with the vendors to expand vendor capacity. Escorts has annual production capacity of 1.7 lakh units overall. Escorts underlined that cost of electric tractors were too high for India.

For the week ended 13th May 2022, a total of 8 of the 10 most valuable companies on NSE by market cap, saw market cap erosion of Rs248,373 crore. This week, Nifty lost 3.8% on top of the 4% fall last week. Reliance value fell Rs130,628 crore followed by SBI Rs35,074 crore, ICICI Bank Rs29,280 crore and Infosys Rs16,869 crore. Among others, HDFC Bank lost Rs14,427 crore, Bharti Airtel Rs11,533 crore, TCS Rs7,154 and HDFC Rs3,409 crore. HUL was the surprise gainer for the week adding Rs10,514 crore in market cap.