Market this week 16-9-2022
Vedanta up 10%; Agarwal claims that the Gujarat chip factory would start production in two years and that the Maharashtra iPhone hub will follow soon.
After chairman Anil Agarwal outlined the production schedule for chips from the Gujarat semiconductor plant that his business would construct with Foxconn, Vedanta Limited shares concluded the day on September 14 with a 10 percent gain.
On September 13, the Gujarat government and Taiwanese electronics giant Foxconn inked a memorandum of understanding for the establishment of a semiconductor and display fabrication facility close to Ahmedabad.
In order to entice manufacturers, the Indian government has been pushing for the establishment of semiconductor facilities, which are pricy and need accuracy.
Following the release, Zydus Lifesciences’ stock rose substantially from its day’s low. On the NSE, the stock was trading flat at Rs 376 as of September 13.
The stock has decreased by 21% in 2022. On the stock, analysts are not particularly upbeat. Zydus Lifesciences, Alkem Labs, IPCA Laboratories, and Aurobindo Pharma are some of Macquarie’s least favourite pharmaceutical stocks.
Zydus receives USFDA approval for a cancer medication
Lenalidomide, a cancer medication, has been approved for marketing by the United States Food and Drug Administration (USFDA), according to pharma company Zydus Lifesciences.
The business, formerly known as Cadila Healthcare, received permission for strengths of 5 mg, 10 mg, 15 mg, and 25 mg as well as provisional approvals for strengths of 2.5 mg and 20 mg.
Various malignancies are treated with lnalidomide. It inhibits or stops the development of cancer cells. Additionally, it is employed to treat anaemia in people with specific blood or bone marrow conditions (myelodysplastic syndromes, or MDS).
Long-term investors who have held the stock for more than five years have seen the price treble from Rs 265 in September 2017, despite the fact that the stock has so far provided negative returns of 18% in 2022.
The costs of Ethylene Vinyl Acetate (EVA), a crucial raw material for Relaxo, and natural and synthetic rubber are also declining from recent heights, which is a significant benefit for the company. Furthermore, the company’s long-term growth drivers will continue to be macro factors like lower penetration and per capita spending in India.
PNC Infratech gains popularity after receiving a Rs 14,60 crore order from the NHAI.
On September 8, following a media article suggested that the government may soon consider raising the price of ethanol used in fuel blending, shares of Indian sugar companies increased.
On September 7, Chinimandi.com reported that for the upcoming sugar season 2022–2023, the government may increase the price of ethanol sold by sugar growers to state-owned oil marketing businesses by Rs. 2–3 per litre.
The suggested increase may go into effect on December 1 and will be valid through November 30. In order to reach its goal of 20 percent ethanol blending in fuel, the government is also thinking of raising the amount of ethanol blending in fuel from the current 10 percent to 12 percent.
Governments around the world sought to lessen reliance on imports as a result of the severe chip scarcity caused by supply chain disruptions brought on by coronavirus restrictions, which severely impacted manufacturers of everything from phones to cars. Taiwan is the world’s top producer of semiconductors.
Vedanta intends to establish a hub for iPhones, televisions, and telephones in the western state, though Maharashtra’s neighbour may have missed out on the semiconductor facility. The business also wants to go into the electric vehicle market. Vedanta closed up for the fifth session in a row at Rs 305 per share on the NSE. The stock has had a turbulent 2022 thus far, providing a negative return of 14%.
Can the strong run continue for this footwear stock, which has increased more than 6% in one day?
On September 13, shares of Relaxo Footwears increased by more than 6% intraday as analysts raised their price targets for the firm due to declining rubber prices and anticipated sales growth over the festival season.
One of the biggest shoe manufacturers in the nation, Relaxo is home to several well-known brands, including Relaxo, Sparx, Flite, and the Bahamas.
Long-term investors who have held the stock for more than five years have seen the price treble from Rs 265 in September 2017, despite the fact that the stock has so far provided negative returns of 18% in 2022
The project will cost 1458 crore rupees. Following the announcement of the selected date, the aforementioned project is to be built in 24 months and run for 15 years after that. On the BSE, the stock increased by almost 3% to Rs 294.95. The stock has so far produced a brutal 5 percent return on investment.
In light of the high government capital spending cycle, analysts are optimistic about the infrastructure company. PNC Infratech has maintained its estimate for FY23 EBITDA margins of 13–13.5% and sales growth of 15% YoY. It anticipates receiving orders between Rs 8000–10,000 crore in FY23.
As the price of ethanol used in blending may increase, sugar inventories are rising.
On September 8, following a media article that suggested that the government may soon consider raising the price of ethanol used in fuel blending, shares of Indian sugar companies increased.
On September 7, Chinimandi.com reported that for the upcoming sugar season 2022–2023, the government may increase the price of ethanol sold by sugar growers to state-owned oil marketing businesses by Rs. 2–3 per liter.
The suggested increase may go into effect on December 1 and will be valid through November 30. In order to reach its goal of 20 percent ethanol blending in fuel, the government is also thinking of raising the amount of ethanol blending in fuel from the current 10 percent to 12 percent.
In its effort to reduce dependence on oil imports and improve foreign exchange savings government has set a target of increasing ethanol blending in fuel to 20 percent by 2025-26. OMCs are expected to buy as much as 550 crore liters of ethanol derived from sugarcane for blending purpose in 2022-23.
The increase use of ethanol blending has provided a new growth opportunity for India’s perennially underperforming sugar industry.Further with the festive season now underway, sugar mills are expecting an upswing in demand for sugar as the country looks forward to the first festive period without COVID-19 restrictions since the onset of the pandemic in March 2020
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