Market this week 4-3-2022

Market this week 4-3-2022
  • Rain Industries’ stock has dropped 12% as a result of a Rs 97 crore loss in the fourth quarter.
  • Airtel’s stock drops 3% after investors approve a Google investment, and the company strikes a contract to increase its share in Indus Towers.
  • The market extended selling as a result of the Russia-Ukraine issue. Over a hundred small-cap stocks have lost 10% to 22% of their value.
  • CLSA improves DLF to a ‘buy’ rating but lowers the target price by 10%.
  • The clearance of the CCI to acquire a stake in ISMT boosts Kirloskar Ferrous stock by 6%.

Rain Industries’ stock has dropped 12% as a result of a Rs 97 crore loss in the fourth quarter.

Rain Industries’ stock fell more than 12% in the morning session of February 28 after the business reported a consolidated net loss of Rs 97 crore in the December quarter, compared to a profit of Rs 307 crore the previous quarter.

However, the company’s net sales increased by 52 percent to Rs 4,026 crore in the quarter, up from Rs 2,640 crore the previous year, and adjusted EBITDA increased by about 13 percent to Rs 541 crore. The EBITDA margin fell to 13.4 percent from 18.2 percent the previous quarter. The company’s fiscal year runs from January to December.

In the fourth quarter, profit before tax fell 49.8% to Rs 223.46 crore, compared to the previous quarter. Finance expenditures were reported at Rs 119 crore, down from Rs 124 crore in the fourth quarter of 2020. The fall in finance expenses was attributed to a 2.6 percent devaluation of the euro against the Indian rupee, as well as decreased use of working capital borrowings, when compared to the previous quarter.

Airtel’s stock drops 3% after investors approve a Google investment, and the company strikes a contract to increase its share in Indus Towers.

Bharti Airtel’s stock fell 3% in early trading on February 28 after shareholders authorised the issue of preferential shares to Google in exchange for its Rs 7,500 crore investment, and the telecom company agreed to buy an ownership stake in Indus Towers from Vodafone Plc.

Vodafone Plc will sell Bharti Airtel a 4.7 percent share in Indus Towers, the former said in a stock exchange statement on Friday. The transaction will be completed on the condition that the money paid be reinvested in Vodafone Idea as new equity and remitted to Indus Towers to settle Vodafone Idea’s outstanding debts.

As part of the 4.7 percent deal, Vodafone Plc sold a 2.4 percent share in Indus Towers to Bharti Airtel on Thursday. Vodafone Plc held a 28 percent ownership in the tower company before to the transaction, while Bharti Airtel maintained a 42 percent share.

The market extended selling as a result of the Russia-Ukraine issue. Over a hundred small-cap stocks have lost 10% to 22% of their value.

Due to several variables such as the Russia-Ukraine situation, rising crude oil prices, F&O expiry, and persistent FII selling, the market extended its selling for the third consecutive week ended February 25 amid extreme volatility.

The BSE Sensex fell 1,974.45 points (3.41 percent) last week to finish at 55,858.52, while the Nifty50 fell 617.9 points (3.57 percent) to finish at 16,658.40.

All of the sectors indices ended in the red, with the Nifty Media index down 7.6%, the PSU Bank index down 5.7 percent, and the Auto index down 4.6 percent. The BSE Midcap index dropped 2.5 percent, while the Smallcap index dropped 4.6 percent.

CLSA improves DLF to a ‘buy’ rating but lowers the target price by 10%.

On February 25, the stock of real estate giant DLF rose nearly 10% intraday after global brokerage firm CLSA upgraded the stock to ‘buy’ with operations at a decade high and good presales data. The stock had previously been given a ‘outperform’ rating by the research company.

CLSA, on the other hand, lowered its price objective to Rs 423 per share from Rs 470 before, representing a potential 32 percent upside from the previous day’s closing levels in the base case. A downside cap of 11% is implied by the stress case valuation.

The firm has cut its revenue forecasts for FY23 and FY24 by 2% and 5%, respectively, as well as profit forecasts by 1% and 3%. From its 52-week high in October 2021, the stock has dropped by 29% in less than four months.

The clearance of the CCI to acquire a stake in ISMT boosts Kirloskar Ferrous stock by 6%.

On February 25, Kirloskar Ferrous Industries’ stock jumped 6% intraday to Rs 198.20 after the Competition Commission of India (CCI) authorised the company’s acquisition of a stake in ISMT.

The CCI evaluated and approved the acquisition of an interest in ISMT by Kirloskar Ferrous Industries at its meeting on February 23, 2022.

Kirloskar Ferrous Industries had submitted an application with the CCI to get the proposed acquisition of a majority share in ISMT Limited approved.

Best FREE Multibagger India

renewable energy multibagger

Subscribe

* indicates required

Multibagger with Expansion Plans | Low PE Ratio | Low Book Value Ratio | Intrinsic Value Discount 70 % | PLUS Free Value Investing Education

Past Multibaggers Bajaj Finance gained 5000% in 10 Years

Categories:

Discussion on India Stock Market