Category: News

IndiaMART InterMESH is finally catching a break after enduring a rough four-month stretch, with its stock plunging 22%. Brokerage JM Financial has shifted gears, upgrading the stock from Sell to Buy. The shift comes as the firm sees potential in the platform’s long-term growth despite recent setbacks, including sluggish collections and weak paying supplier additions. JM Financial points to a sharp deceleration in collections growth, just 5% year-on-year in Q2FY25, and six quarters of muted supplier additions as the primary reasons for the stock’s earlier downturn. While Q3FY25 metrics are unlikely to show dramatic improvement, the brokerage anticipates a recovery in standalone collections growth, expecting low-teens growth in the medium term. Meanwhile, EBITDA margins are projected to remain robust at 34-36%, thanks to minimal growth-related investments. The firm acknowledges ongoing challenges in paying supplier growth, a key metric that has struggled since Q1FY24. Despite these hurdles, deferred revenue should push overall revenue growth to 15.5% year-on-year in Q3FY25, offsetting lackluster collections. On the cost side, reductions in sales incentives and servicing costs could provide a boost, with EBITDA margins projected to climb by eight percentage points year-on-year and consolidated EBITDA expected to expand by a robust 50%. Looking further ahead, JM Financial forecasts collections growth stabilizing in the low-to-mid teens, down from the platform’s historical CAGR of over 20%.

Global brokerage HSBC has turned cautious on Indian equities, downgrading its stance from Overweight to Neutral amid concerns over steep valuations and slowing growth momentum. The revised outlook reflects expectations of muted near-term market gains, with HSBC lowering its Sensex target for the end of 2025 to 85,990—down from the earlier projection of 90,520. This still represents a modest 10% upside from the January 8 closing level of 78,148.49. HSBC’s tempered optimism comes as India’s robust earnings growth story faces a reality check. After years of annualized earnings growth of around 25%, the pace has decelerated sharply, prompting the brokerage to slash its FY25 Nifty 50 earnings growth forecast from 15% to a mere 5%. HSBC cited potential downside risks to growth, compounded by a cyclical slowdown and recalibration of high earnings multiples. The Indian stock market has seen a significant pullback since peaking in September 2024, with the FTSE India Index down 12% in USD terms and benchmark indices Sensex and Nifty 50 falling about 10% from their record highs. This correction follows nine consecutive years of annual gains, with foreign investors retreating from richly valued stocks as earnings disappoint. Since September 2024, foreign fund outflows have totaled $12 billion, although resilient domestic demand has helped cushion the blow. HSBC’s downgrade is not a rejection of India’s long-term potential but rather a reflection of its cautious near-term view.

Adani Wilmar is poised to grab market attention as its promoter, Adani Commodities, has unveiled plans to offload a 13.5% stake through an Offer For Sale (OFS). This base issue size, amounting to 17.54 crore shares, was announced late Thursday evening in a regulatory filing. In addition, the company has reserved the option to exercise a green shoe mechanism, potentially increasing the stake sale by another 6.5%. The OFS price has been pegged at ₹275 per share, offering a 15% discount to the stock’s closing price on Thursday. The sale will open to non-retail investors on Friday, January 10, with retail investors gaining access on Monday, January 13. This move aligns with broader restructuring efforts within the Adani Group. Last month, Adani Enterprises, the conglomerate’s flagship entity, revealed plans to exit its joint venture in Adani Wilmar. The strategy includes selling a 13% stake to meet minimum public shareholding norms, while Wilmar International—the co-promoter—agreed to acquire the remaining 31%. The Adani Enterprises’ portion of the holding is valued at an estimated ₹18,500 crore, or over $2 billion, based on current valuations.

ACME Solar Holdings Ltd is basking in the spotlight as its shares surged nearly 5%, following the commissioning of an additional 90 MW of solar capacity in Rajasthan. This latest achievement pushes the company’s total operational renewable generation capacity to an impressive 2,453 MW, reinforcing its position as a key player in India’s green energy push. This follows the December 2024 announcement of 1,023.05 MW of solar projects coming online, demonstrating the company’s steady march towards renewable energy leadership. To add to the momentum, ACME secured ₹1,988 crore in financing from Power Finance Corporation for a 300 MW solar-wind hybrid project, blending solar capacity in Bikaner with wind energy from Bhuj. Expected to go live by June 2025, this hybrid project already has a power purchase agreement with NTPC, signaling strong commercial viability. On the market front, ACME shares hit a day’s high of ₹241.00, up 4.8%, signaling growing investor optimism. Although the stock remains 17% below its all-time high of ₹292.00 from December 2024, it has rebounded 7.5% from a 52-week low of ₹224.00, logged in late December. Despite being listed at a 13% discount to its IPO price of ₹289 in November 2024, the company’s consistent project execution and financial discipline are gradually reshaping market sentiment.

Delta Corp had a strong outing on Wednesday, climbing over 7% to hit Rs 117.4, thanks to a glimmer of hope for the beleaguered online gaming sector. The Supreme Court’s decision to hear the industry’s grievances over GST show cause notices on January 10 has brought a breath of fresh air to investors. The core issue? A massive Rs 1.12 lakh crore tax demand hanging over the heads of 71 online gaming firms, triggered by notices from the Directorate General of GST Intelligence (DGGI). To make matters worse, penalties could push the total demand to a staggering Rs 2.3 lakh crore. At the heart of the drama is a dispute over whether online gaming companies should have been paying 28% GST or 18% for the period before October 1, 2023. While the government insists the tax rate was always meant to be 28%, the industry argues that the change should only apply from October onward. In August 2023, the GST Council clarified the law, stating that all games involving bets—regardless of whether skill or chance was involved—would face the higher GST rate on the full value of bets placed.

The bond market is flexing its muscles again, and equities might be the next to feel the heat. The US 10-year Treasury yield is flirting with the 4.7% mark, a level not seen since April, after a relentless climb of over one percentage point since mid-September. It’s déjà vu for anyone who remembers the sharp equity selloffs in 2022 and 2023 that came alongside similar yield spikes. This time, though, the stock market has been remarkably cool, with just a mild pause in its rally. But that calm could crack if bond yields keep climbing. Goldman Sachs strategists are already flashing warning signs. They’re pointing out that equity and bond yield correlations have flipped negative again—bad news for stocks if yields continue to rise without strong economic data to back them up. The risk of a short-term market correction looks higher, especially if growth numbers disappoint. The spotlight is on long-term rates, which have been the biggest movers as yield curves steepen. It’s not inflation driving this shift but rising real yields—a sign that markets are pricing in fiscal risks and productivity bets rather than inflation fears. The Federal Reserve’s policy trajectory remains a wild card, with the next rate cut not expected until July. Investors are waiting for clarity from the Fed’s minutes, hoping to decode the central bank’s stance in this volatile mix.

Shares of Blue Cloud Softech Solutions reached their 5% upper circuit at ₹105.27 on Wednesday after the company announced a significant order from Discovery Oaks Public School. The ₹1.05 crore project will deploy Edugenie and Emotifics, two of the company’s flagship AI-driven products designed to revolutionize education through advanced technology. Edugenie, the centerpiece of the deal, is an AI-enabled Learning Management System (LMS) that promises tailored learning experiences while fostering better connections between instructors and students. Meanwhile, Emotifics, another innovative product from Blue Cloud, brings cutting-edge AI capabilities like gender and age detection, smile recognition, face tracking, and other advanced features to enhance learning environments. Blue Cloud Softech Solutions is no stranger to headlines, having recently announced a stock split that aims to enhance liquidity.  The order from Discovery Oaks Public School is expected to strengthen Blue Cloud’s position in the rapidly evolving AI and education technology space. As the company expands its reach and aligns itself with innovative solutions, it could well be setting the stage for sustained growth, even as the market watches closely for its next moves.

Shares of United Breweries, the name behind Kingfisher beer, took a sharp 7% dive on Wednesday after the company made a bold move—halting beer supplies to the Telangana Beverages Corporation Ltd (TGBCL). This public-sector giant controls all liquor distribution in Telangana, making it a key player in the state’s alcohol market. United Breweries pointed to financial woes as the tipping point. According to the company, TGBCL hasn’t updated the basic price of beer since 2019-20, leading to significant losses. Add to that a mountain of overdue payments for past supplies, and the company decided enough was enough. The financial mismatch made continued operations “unviable,” as stated in their announcement. The fallout was swift. The stock hit an intraday low of ₹1,920, marking a 7.4% drop. In Q2 FY25, it posted a 23% year-over-year jump in net profit, reaching ₹132 crore. EBITDA climbed 21% to ₹237 crore, and net sales rose 12% to ₹2,115 crore.  The decision to cut off beer supplies in Telangana could hit United Breweries’ market share in the state, but the company’s overall financial strength offers some reassurance. The real test will be whether they can resolve the pricing and payment standoff with TGBCL without further dents to their bottom line.

Exicom Tele-Systems, a key player in EV charging and critical power solutions, surged to its 5% upper circuit at ₹250 on Wednesday following the announcement of a strategic partnership. The company inked a Memorandum of Understanding (MoU) with Mufin Green Infra Limited to develop end-to-end EV charging infrastructure, signaling a strong move toward bolstering India’s EV ecosystem. As part of the deal, Exicom will manufacture and supply advanced EV charging hardware, equipped with its proprietary software to enhance efficiency and user convenience. The partnership will cater to a wide array of customers, including charge point operators, bus operators, and state utilities, aiming to accelerate EV adoption across the country. Exicom will also offer technical support, maintenance services, and digital solutions to complement its hardware offerings. Mufin Green Infra will focus on installing EV charging stations, creating fleet charging hubs, and onboarding new B2B customers. Both companies plan to leverage their market presence and collaborative efforts to scale operations and meet regulatory standards for environmental and safety compliance.

Kalyan Jewellers shares stumbled 6.2% on Wednesday morning, hitting ₹677.55 on the BSE as investors took some chips off the table after an impressive Q3 performance update. The numbers were solid—a hefty 41% year-on-year revenue jump and a stellar 24% same-store sales growth, driven by robust festive and wedding demand across gold and studded jewellery categories. The company opened 24 new showrooms in India during the quarter, with even more launches in the pipeline for this year. Meanwhile, the Middle East operations held their ground with a 22% revenue growth, contributing 11% to the consolidated revenue. The digital-first brand, Candere, didn’t miss its moment either, posting an eye-catching 89% growth and rolling out 23 showrooms in Q3 alone. Even across the pond, Kalyan set up its first fully owned showroom in the US, marking a milestone. Despite today’s dip, the stock remains in a strong uptrend, making higher lows on the monthly chart and poised for a range breakout on the weekly scale. It’s hovering near its life-high territory and above short-term moving averages, with RSI momentum indicators suggesting further bullish moves ahead.