Finvezto Daily Market Bytes, 05 Dec 2024
Your daily dose of bite-syzed stock, business & economy updates
In today’s edition, we cover:
Airtel's Network Expansion Deal
Ola’s EV Battery Production Push
Strong Service Sector Growth in November
CEO Confidence In Mamaearth
LTIMindtree's AI Investment
Key Stock Updates
Here’s a quick market snapshot.
Let’s start.
1/6. Airtel's Network Expansion Deal
The News:
Ericsson secures multi-billion contract from Airtel to deploy 4G and 5G Radio Access Network (RAN) solutions.
The Details:
Ericsson will deploy centralized RAN and Open RAN solutions for Airtel to enhance network coverage and capacity. This aims to improve network speed and reliability for Airtel's growing subscriber base.
Airtel recently awarded a similar contract to Nokia for 5G AirScale portfolio deployment.
These partnerships position Airtel to expand its 5G infrastructure across India.
2/6. Ola’s EV Battery Production Push
The News:
Ola Electric plans to power its new low-cost scooters with in-house manufactured battery cells from April 2025.
The Details:
The company will start using 4680 Bharat Cell produced at its Krishnagiri Gigafactory for Ola Gig and S1 Z models. Ola recently launched four scooters starting at ₹39,999 with swappable batteries targeting gig workers and students.
The company received 20 GWh capacity under PLI scheme and plans to invest $100 million for 5 GWh production in first phase. Currently India imports all EV battery cells from China and South Korea which make up ~1/3rd of vehicle cost.
Local cell production will reduce dependence on imports and give Ola cost advantage as batteries are the most expensive EV component.
But Ola needs to quickly ramp up customer service and regain customer confidence.
3/6. Strong Service Sector Growth
The News:
India's services sector PMI stayed strong at 58.4 in November with employment growth hitting record levels.
The Details:
The sector saw the fastest employment growth since the survey began in 2005 due to higher business confidence and new orders.
New export orders grew with business coming from Asia, Europe, Latin America and US markets.
With a 53% share in India's GVA the services sector's performance directly impacts overall economic growth. The strong hiring and business confidence indicate sustained growth potential.
4/6. CEO Confidence In Mamaearth
The News:
Honasa Consumer's CEO Varun Alagh buys additional shares worth ₹4.5 crore increasing his stake to 31.93%. Share price zooms 6%.
The Details:
Alagh and his wife Ghazal now control 35% of the company a high founder ownership for Indian startups. The stake increase comes as shares fell 38% year-to-date.
The company reported its first quarterly loss in five quarters at ₹19 crore in Q2FY25 versus ₹29 crore profit last year. Revenue dropped 7% to ₹462 crore.
CEO's share purchase signals confidence despite business challenges.
5/6. LTIMindtree's AI Investment
The News:
LTIMindtree USA invests $6 million in Voicing.AI to acquire human-like voice technology across 20 languages.
The Details:
Voicing.AI's technology brings conversational intelligence with emotional capabilities through 'agentic AI'.
The integration targets client systems including CRM platforms and knowledge bases.
LTIMindtree aims to help clients automate customer engagement through personalized connections.
This move positions LTIMindtree as an early player in platform operations automation.
6/6. Key Stock Updates
New Orders
L&T Technology Services secured 50 million USD network integration deal in North America
Bondada Engineering won ₹108.9 crore order from Bihar Renewable Energy Development Agency
Dynamic Services receives solar project offer from Maharashtra for ₹1,080 crore investment
Partnerships, Acquisitions & Investments
Zaggle signs 5-year domestic agreement with AGP City Gas
Suzlon partners with Jindal Renewables for 302.4 MW wind project
Cyient DLM collaborates with Arcedo Systems for 500 kWp solar plant
Larsen & Toubro completes 15% stake acquisition in E2E Networks
Core Business Updates
Force Motors reports 0.05% sales growth with 1,885 units sold in November
Royal Enfield establishes new assembly plant in Thailand for expansion
Torrent Pharmaceuticals acquires three anti-diabetes brands from Boehringer Ingelheim
CarTrade Tech platforms reach 150 million unique users milestone
Hero MotoCorp launches Vida V2 electric scooters in three variants
LTIMindtree invests in Voicing.AI for AI customer engagement
Suraj Estate subsidiary acquires Mumbai land for ₹101 crore, GDV ₹525 crore
Corporate Actions
PG Electroplast opens QIP at ₹690-699 per share to raise ₹1,500 crore
Bharat Forge launches QIP with floor price at ₹1,323.54 per share for ₹1,650 crore
Fusion Finance board approves ₹800 crore rights issue
Vodafone Idea board to consider ₹2,000 crore fundraising on December 9
Indus Towers releases 3% pledged shares from Vodafone Promoters
Disclaimer: Anand Ganapathy K is a SEBI-registered Research Analyst with SEBI registration number INH000016630. This daily update highlights market trends for your awareness. It does not recommend buying or selling stocks mentioned in this newsletter. Securities market investments carry market risks. Kindly review all related documents before investing.
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