Market this week 3-6-2022

Market this week 3-6-2022
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Despite wider losses in Q4, Zomato’s stock price jumps 18%.

On May 24, a day after the firm announced its March quarter earnings, Zomato’s stock increased by more than 18 percent intraday.

On May 24, the stock price was up 5% in early trading. The food aggregator announced a Rs 359 crore net loss in the fourth quarter of fiscal year 2021-22 on May 23. During the same time period, the company’s revenue increased to Rs 1,211.8 crore.

The net loss has nearly quadrupled from the previous quarter, when it was Rs 134.2 crore, despite sales increasing by 75% from Rs 692.4 crore in Q4FY21.

In the fourth quarter of FY22, Zomato recorded an EBITDA loss of Rs 449.7 crore, compared to a loss of Rs 153.5 crore the previous year.

Deepak Nitrite Fire Incident

Incident of fire around warehouse in manufacturing site located in Vadodara, Gujarat. No casualties. Situation under control. Estimated impact on production & operations are under progress. Insurance coverage exists so no remarkable losses.

The S&P 500 is on track to confirm the bear market, with a 20% drop from its all-time high.

In tumultuous trading on May 20, the benchmark S&P 500 index was down 20% from its Jan. 3 record finish, as investors worried about the impact of rising inflation on earnings and the impact of interest rate hikes on economic growth.

For the first time since the 2020 Wall Street crash caused by the coronavirus pandemic, a close of 20% or more below that level will certify the S&P 500 is in a bear market. The Nasdaq, which is heavily weighted in technology, is already in a bear market, down 30.7 percent from its all-time high in November 2021.

Consumer discretionary and industrials both fell 3.5 percent and 2.2 percent, respectively, out of the 11 major S&P sectors. Apple Inc, Alphabet Inc, Nvidia Corp, and Tesla Inc all fell between 2.5 and 9.9%, weighing the most on the S&P 500 and Nasdaq. In morning trade on May 20, both indexes had surged beyond 1%.

Over the course of a month, the Chennai Super Kings’ stock dropped 15-20% in unlisted markets.

According to a dealer, Chennai Super Kings (CSK), a multibagger in the unlisted market, has begun to lose some of its lustre as the stock has corrected 15-20 percent in the previous month to Rs 185-190. In mid-April, it was trading at Rs 225-230 per share.

Analysts attributed the adjustment to a variety of factors, including concerns over the team’s leadership. The increased earnings from sponsorship and royalties drew investors to CSK. However, given MS Dhoni’s recent dismal performance and resignation as captain, sponsors are likely to be less interested.

Other issues include the squad’s persistent poor performance in the ongoing Indian Premier League (IPL): the team has failed to qualify for the playoffs after losing nine of its 13 matches. The recent correction in CSK shares can be ascribed to the decline in wider as well as unlisted markets.

On the back of unfavorable macro circumstances, Nomura predicts a difficult period ahead for the IT sector.

Demand for information technology services is expected to slow in fiscal year 2024, according to brokerage firm Nomura Research. Amid fast-changing macroeconomic conditions, predicted Fed tightening, and profit warnings from corporations throughout the world, the brokerage company expects tough days ahead for tech expenditures.

It looked at the sales and earnings characteristics of 750 organisations and found that overall financial performance is expected to decrease significantly in the next quarters. With a lag of 1-3 quarters, it observes a high association between financial performance of the sample set and IT services revenue, indicating a likely downturn in IT services demand in FY24F.

Nomura has cut its coverage universe’s FY23-24 EPS by 0-5 percent, citing sluggish revenue growth as the key reason. Its EPS for FY23-24 are 2-3% lower than the market for large caps.

Grasim Industries Q4 Results | Net profit rises 62 percent year on year to Rs 2,777 crore

Grasim Industries, the flagship company of the Aditya Birla Group, reported a consolidated net profit of Rs 2,777 crore for the March quarter (Q4FY22), up 62 percent from the previous quarter, thanks to greater revenues and tax write-offs.

Revenue from operations increased 18% year on year (YoY) to Rs 28,811 crore, compared to Rs 24,402 crore in the same period previous year. The tax write-off for the period was Rs 464 crore, compared to Rs 1,064 crore in tax paid in the previous fiscal quarter.

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