Finvezto Daily Market Bytes, 17 Dec 2024
Zerodha in Billion Dollar Club; WPI Inflation drops in November; Wockhardt Zaynich Breakthrough; Haldiram’s Billion Dollar Deal & much more...
In today’s edition, we cover:
Zerodha in Billion Dollar Club
WPI Inflation drops in November
Wockhardt Zaynich Breakthrough
Haldiram’s Billion Dollar Deal
Key Stock Updates
Here’s a quick market snapshot before we start. GIFT Nifty indicates a flat start for the Indian Markets.
Zerodha in Billion Dollar Club
They say in casinos, the house always wins. In stock markets? It's the brokers and exchanges who rake it in.
Zerodha joins the billion-dollar revenue club in FY24, posting ₹9,372 crore revenue with ₹5,496 crore net profit.
Zerodha’s growth story keeps getting better every year. Net profit jumped 89% from last year's ₹2,908 crore.
Employee costs dropped 24% to ₹473.96 crore, even as trading volumes shot up.
A CEO’s dream.
But, CEO Nithin Kamath sees growth leveling off soon. Why?
SEBI's new F&O rules! Only one Weekly index expiry per exchange, bigger contract sizes etc. Mr Kamath expects these could cut trading volumes by 30%.
Yet history tells us the house adapts and survives. Zerodha has time and again proven they know how to do it profitably.
WPI Inflation drops in November
India's wholesale price inflation (WPI) drops to 1.89% in November as food prices cool, marking a 3-month low from October's 2.4%.
Primary food inflation is down to 8.63% from October's 13.54%. Onions and tomatoes that often make the headlines, finally gave consumers a break.
While vegetables cooled dramatically (28.6% from 63%) and fruits followed suit (8.4% from 13.5%), wheat prices still remain stubborn.
Here’s the big picture - With CPI and WPI Inflation easing, the stage might be set for an RBI rate cut in February.
Wockhardt Zaynich Breakthrough
Wockhardt's experimental antibiotic Zaynich saves a US cancer patient's transplant journey.
A 73-year-old cancer patient who needed a liver transplant faced a deadly roadblock - extreme drug-resistant infections.
Zaynich cleared the path, doing what other antibiotics couldn't.
Made from a combo of Zidebactam and Cefepime, it outsmarts bacteria that have learned to dodge our current best antibiotics.
Wockhardt's shares shot up 8% to ₹1,536.6 following the breakthrough.
Why this is big for Wockhardt?
Think about this: 700,000 potential patients in the US alone. Global launch planned for 2026. Direct marketing in India and Emerging markets etc.
Haldiram’s Billion Dollar Deal
Snack giant Haldiram’s might soon have new partners at the table with Blackstone leading a $1.6 billion bid for 20% stake.
We are looking at an $8 billion valuation for a company that started with a small shop in the 1930s.
From local snacks to ready-to-eat meals, Haldiram's is a uniquely Indian growth story.
The deal could close in weeks, though it is not final yet.
If it goes through, it'll mark another milestone in India's consumer story - where traditional snack makers turn into billion-dollar enterprises, backed by global investment giants.
Key Stock Updates
New Orders
Alphageo India won two 2D Seismic Data Acquisition contracts from ONGC worth ₹118.63 crore
PPAP Automotive bagged multi-year orders worth ₹118 crore from existing clients
Waaree Energies received 398 MW solar module orders
Canarys Automations won ₹15.54 crore contract for Chennai's water supply automation
Texmaco Rail secured ₹187 crore order for transmission lines construction in Chhattisgarh
Nitco won ₹105 crore order from Prestige Estates for tiles and marble supply
RailTel Corp received ₹37.99 crore CCTV work order from Central Warehousing Corp
Rail Vikas Nigam secured ₹270 crore metro stations construction order in Nagpur
Partnerships, Investments & Acqusitions
Wipro to acquire Applied Value Technologies for $40 million
Varun Beverages acquired 39.93% stake in Lunarmech
Happiest Minds Technologies merged US-based Aureus Tech Systems
Corporate Actions
Gravita launched ₹750 crore QIP with floor price at ₹2,206.49 per share
HCC opened QIP with floor price at ₹45.27 per share
Kellton Tech to consider fund raising via QIP on December 19
Indus Tower won tax appeal reducing contingent liability by ₹3,500 crore
Shriram Properties promoter stake increased to 48.47% after share acquisition
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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.