Market Fatafat: Stocks that are making news today

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KEY HIGHLIGHTS

  • 4 rounds of 5G auction complete on day 1
  • Credit Suisse initiates coverage on Nykaa with underperform
  • Defense stocks in focus on government’s arms procurement approval

Let’s talk about a few stocks that are in focus today.

1 – 5G SPECTRUM AUCTION

The government has received record bids of ₹1.45 lakh cr after four rounds on Day 1 of India‘s first-ever 5G spectrum auction. The crucial 700 MHz band saw bidding for the first time, along with strong interest in the mid-band and high-band airwaves. All bids were at the base price.

2 – PETRONET LNG

Citi has downgraded Petronet LNG to sell, with a target of ₹210/share, as they claim that the LNG demand outlook remains muted. Q2 is a seasonally strong quarter for PLNG & could provide some stock support.

3 – UNITED SPIRITS

United Spirits Q1 net sales at ₹2169 Cr vs ₹1615 Cr, up 34%. PAT at ₹210 Cr vs ₹69 Cr, up 204%. Reported EBITDA at ₹274 Cr vs ₹168 Cr up 63%.

4 – NYKAA

Credit Suisse has initiated coverage on Nykaa with underperform, with a target of ₹1100/share. They claim that there is too much optimism priced in and Nykaa has built a dominant position in the online beauty segment.

5 – HDFC LIFE & YES BANK

HDFC Bank will consider a fundraise via equity on July 29. Yes Bank will also hold a board meet on July 29 to consider fundraise.

6 – KEI INDS

KEI Q1 Revenue at ₹1565 cr vs ₹1017 cr, up 54%. Net Profit at ₹104 cr vs ₹67 cr, up 55%. EBITDA at ₹159.2 cr vs ₹113.4 cr, up 40%.

7 – SIS

SIS Q1 revenue is up 12.6% at ₹2678 cr vs ₹2379 cr, but EBITDA is flat at ₹121 Cr. The company has seen strong growth in the India security solutions segment. Margins have been impacted by the international security solutions segment.

8 – DEFENCE STOCKS IN FOCUS

Defence stocks in India are in focus as government-approved arms procurement proposals worth 287.3b rupees, which include swarm drones, bulletproof jackets, and carbines. Bharat Dynamics, Bharat Electronics, Solar Industries, Astra Microwave, Mishra Dhatu, Bharat Forge, Zen Technologies, and Rattan India Enterprises are some of the stocks to watch out for.

9 – ZOMATO

Moore Strategic sold 4.25 Cr Shares At ₹44/Share. Credit Suisse maintains outperform on Zomato with a target of ₹90. Jefferies retains buy on the stock with a target of ₹100.

10 – SANSERA ENGG

Sansera Engineering has dropped a business contract from a leading North American OEM for the development, manufacturing, and supply of connecting rods. Therefore, the contract stands withdrawn.