Category: Business & Economy

Shares of Punjab National Bank rose by 3.4% to Rs 101.60 on Thursday morning at 10:45 AM (IST). During trading, the stock reached a high of Rs 101.90 and a low of Rs 99.40. The bank’s return on equity (ROE), which shows how well the company is using its money to make profits, is 8.92%.

By that time, about Rs 7.70 crore worth of shares were traded. The stock has had quite a journey, hitting a high price of Rs 142.90 and a low of Rs 92.35 over the past year. The stock’s Beta value is 1.7846, indicating that it is more volatile than the overall market.

In terms of ownership, as of December 31, 2024, promoters (the founding members) own 70.08% of the bank, while Foreign Institutional Investors (FIIs) hold 5.7%, and domestic institutional investors own 5.36%.

Looking at the company’s performance, Punjab National Bank reported consolidated sales of Rs 35,111.47 crore for the quarter ending September 30, 2024. This shows an increase of 7.18% from the previous quarter’s Rs 32,759.89 crore and a notable rise of 17.6% from Rs 29,857.05 crore in the same quarter last year.

On Thursday, January 16, GAIL (India) Ltd will be the center of attention. The company just announced a big deal with SEFE Marketing & Trading Singapore Pte Ltd that settles their ongoing disagreements.

Here’s what you need to know:

– Settlement Amount: SEFE Marketing will pay GAIL $285 million.
– No More Court Drama: This deal means that both sides will stop their arguments in the London Court of International Arbitration.

GAIL also shared its earnings for the second quarter of the year, showing some ups and downs:

– Profit: GAIL earned Rs 2,672 crore this quarter, which is 11% more than last year.
– Revenue: The company’s earnings from sales rose 3.5% to Rs 32,931 crore.
– However, their gas marketing business did not do so well, with profits dropping by 26% to Rs 1,329 crore. The gas transmission business, on the other hand, did better, increasing profits by 8% to Rs 1,403 crore.

Target Price: Analysts predict GAIL’s stock could reach Rs 232, suggesting it might go up by 30% from where it is now.

Current Stock Performance: GAIL shares closed at Rs 178, up 1.2% on the stock market. While the stock has dropped 25% in the past six months, it has gained 85% over the last two years. The company’s total market value is Rs 1,17,036 crore.

Hindenburg Research, a company that looked into business wrongdoings, has announced that it is shutting down. Nate Anderson, the founder, shared the news on Wednesday. He mentioned that they had decided to close the company after wrapping up their latest projects, which included some investigations into financial fraud.

Hindenburg Research was started by Nate Anderson in 2017. It focused on finding problems in companies, like mistakes in their money records or bad management. They often made money by betting against companies that they thought were doing something wrong. The company was named after the Hindenburg airship, which had a famous crash in 1937.

Nate Anderson studied international business at the University of Connecticut and began his career at FactSet Research Systems. He worked with companies that managed investments. He wanted to do more than just regular analysis, which he found boring. He even drove an ambulance in Israel for a short time, saying it taught him how to act quickly under pressure. Anderson looked up to Harry Markopolos, the person who first uncovered Bernie Madoff’s fraud.

Since its start, Hindenburg Research has pointed out possible issues in over 16 companies.

On Thursday, January 16, CEAT, a company that makes tyres, announced that it has made less money this past quarter. CEAT’s profits dropped by about 46% to Rs 97.03 crore compared to Rs 181.28 crore last year. The main reason for this drop is due to high costs for raw materials.

But it wasn’t all bad news. CEAT’s total income from sales went up to Rs 3,299.9 crore, which is more than last year’s Rs 2,963.14 crore. However, their total expenses also increased to Rs 3,175.58 crore from Rs 2,738.53 crore a year earlier. This means they spent a lot more money, especially on materials, which cost Rs 2,116.52 crore, rising from Rs 1,694.91 crore last year.

Arnab Banerjee, the CEO of CEAT, said that while the higher costs affected their profits, they managed to increase prices in some product categories to help cover those costs. He mentioned that their sales grew significantly thanks to the replacement segment, meaning customers continue buying new tyres to replace old ones.

Looking to the future, Banerjee said that demand for their tyres remains strong, and they have a good number of orders. He expects the prices for raw materials to stay stable in the next quarter.

As for CEAT’s stock, experts say it has potential. Trendlyne’s data shows that the average target price for CEAT shares is Rs 3,456. This means the stock could go up by around 13% from where it is now. Out of 17 analysts, most have suggested buying the stock.

Recently, CEAT shares closed at Rs 3,057, which is a 0.5% increase. Over the last six months, the stock has increased by 12% and by 82% in the past two years. Currently, CEAT has a market value of Rs 12,367 crore.

The Indian stock market is expected to rise on Thursday, thanks to positive signals from around the world. The India VIX, which measures how much the market might move, fell by 1.1% to 15.30. This shows that investors feel a bit calmer. When the VIX is above 15, it often means there’s more market chaos.

Data from the stock market suggests a cautious mood among investors. Many are writing call options, indicating some fear. There has been a significant increase in contracts for the 23,300-level call options, which could act as a resistance level. Also, the 23,200 put options are gaining popularity, showing that this level is a strong support point.

Dhupesh Dhameja, an analyst at SAMCO Securities, noted, “The high activity between the 23,200 and 23,300 levels indicates a fight between buyers and sellers. The rise in call options suggests that 23,300 is a tough barrier for prices to go up.”

The Put-Call Ratio (PCR) dropped to 0.72 from 0.79, indicating a steady market attitude. The ‘max pain’ level at 23,300 shows that there may not be much chance for the prices to go down in the immediate future.

“If the prices break past 23,300, we might see a rally towards 23,500. However, if they fall below 23,000, we could see them drop to 22,800. Right now, a good strategy is to buy near support and sell near resistance until something more definite happens,” suggested Dhameja.

For those looking to trade in the short term, here are some stock recommendations from various experts:

From Rajesh Palviya, VP-Technical & Derivative Research, Axis Securities:
– BSE: Buy | Target Rs 6480 | Stop Loss Rs 5550
– Elecon Engineering: Buy | Target Rs 700 | Stop Loss Rs 585
– Navin Fluorine International: Buy | Target Rs 4185 | Stop Loss Rs 3590
– Goldiam International Ltd: Buy | Target Rs 665 | Stop Loss Rs 474

From Nooresh Merani, Independent Technical Analyst:
– Indus Tower: Buy | Target Rs 375 | Stop Loss Rs 340
– Power Grid: Buy | Target Rs 320 | Stop Loss Rs 295
– JM Financial: Buy | Target Rs 135 | Stop Loss Rs 115

On January 16, all eyes will be on Adani Group stocks because Hindenburg Research, a company in the U.S. known for its “short-selling” strategies, has officially shut down. Nate Anderson, the founder of the firm, announced this on January 15. Recently, Hindenburg made headlines in India for its reports on Gautam Adani, a billionaire whose companies lost billions because of these claims.

In his announcement, Anderson shared, “I have decided to disband Hindenburg Research.” He mentioned that they planned to complete their investigations before closing down. One of the last projects they wrapped up was about Ponzi schemes, which contributed to their end.

### Impact of Hindenburg on Adani Group

Hindenburg Research focused on the Adani Group throughout 2023, and their reports caused big financial losses for Gautam Adani. Although the Adani Group’s market value dropped significantly, they later regained most of their losses in the stock market. Adani and his companies have consistently denied all allegations made against them.

### Timing of the Closure

The announcement from Anderson comes at a curious time. Just a few days ago, a Republican Congressman asked the Department of Justice to keep all documents related to the investigations about Adani. Anderson did not give a clear reason for closing Hindenburg, but he did say that it wasn’t due to any specific threat or personal issues.

He reflected on his life and career, stating, “At some point, a successful career can become a selfish act.” He mentioned feeling good about his life choices and recognized the personal sacrifices he made along the way.

### Looking Ahead

In an interview with The Wall Street Journal, Anderson talked about his future plans, which include hobbies, traveling, and spending time with his fiancée and child. He believes he has enough money for his family’s future and will now focus on lower-stress investments like index funds.

Anderson also vowed to help his former team find new opportunities. He encouraged them to start their own research firms or explore new ventures, promoting the valuable skills they possess.

In New Delhi, the Nifty Pharma index closed slightly higher on Wednesday. Three companies that did well included Ajanta Pharma, which rose by 2.32%, Gland Pharma, up by 0.33%, and J B Chemicals, which went up by 0.27%.

However, not all companies had a good day. Natco Pharma fell by 2.83%, Mankind Pharma dropped by 2.63%, Glenmark Pharmaceuticals went down by 2.56%, Aurobindo Pharma dropped by 2.3%, and Laurus Labs fell by 1.96%.

Overall, the Nifty Pharma index increased by 1.04%, closing at 21,972.70. The main Nifty50 index went up by 37.16 points to finish at 23,213.2, while the BSE Sensex rose by 224.45 points to 76,724.08. Out of 50 stocks in the Nifty index, 26 went up in value, while 24 went down.

Some of the most traded stocks on the NSE included Vodafone Idea, YES Bank, Zomato, Suzlon Energy, and Bank of Maharashtra. Four companies like Quadrant Future Tek and Standard Glass Linin reached their highest stock prices in 52 weeks today, while Network18 Media, VIP Industries, and others hit their lowest prices in 52 weeks.

On Wednesday, around 2:04 PM IST, shares of Divi’s Laboratories Ltd. climbed by 1.75% to reach Rs 5,892.30. However, this was slightly lower than the previous day’s closing price of Rs 5,997.85. At the same time, the stock market index, Sensex, saw a minor increase, gaining 91.33 points to stand at 76,590.96.

Over the past year, Divi’s Labs stock has grown by an impressive 50.78%. In comparison, the Sensex index rose by 7.36% during the same period. The highest price of the stock in the last year was Rs 6,448.75, while the lowest was Rs 3,350.05.

Today, 7,630 shares of Divi’s Labs were traded. The stock has a high price-to-earnings ratio of 85.14, which means investors are paying more for each unit of earnings. The earnings per share (EPS) stands at Rs 69.16, and the price-to-book ratio is at 6.71.

Among the 50 major companies in the Nifty50 index, 22 companies showed gains, while 28 experienced losses.

Looking at ownership, promoters (company owners) held 51.89% of the shares as of September 30, 2024. Foreign institutional investors (FIIs) owned 17.25%, and mutual funds held 11.92%.

For the quarter ending on September 30, 2024, Divi’s Labs reported a strong sales figure of Rs 2,444 crore, which is 11.24% higher than the previous quarter and 22.51% more than last year. The company also reported a net profit of Rs 510 crore for this quarter.

However, technical indicators show that the MACD (Moving Average Convergence Divergence) is showing a bearish trend. This means that the stock might drop in price soon. The MACD is used to signal when to buy or sell stocks based on trends.

If you haven’t activated your Universal Activation Number (UAN) yet, you need to hurry! The deadline to activate your UAN and link it with Aadhaar is now January 15, 2025. This deadline has been moved back from earlier dates: first from November 30, 2024, to December 15, 2024, and now to January 15, 2025.

What is UAN?
UAN is a unique 12-digit number that helps you manage your provident fund accounts in one place. It makes it easier for employees to track and access their funds.

Why Activate UAN?
Activating your UAN is crucial if you want to benefit from the Employment Linked Incentive (ELI) scheme. This scheme was announced by Finance Minister Nirmala Sitharaman in the 2024 Union Budget, aimed at encouraging job creation in formal sectors.

To get benefits from the ELI scheme, you also need to link your Aadhaar with your bank account. The EPFO reminded everyone on X (formerly Twitter): “Make sure to link your Aadhaar with your bank account to enjoy the benefits of the ELI scheme. Do it soon to avoid last-minute trouble!”

How to Activate UAN:
1. Visit www.epfindia.gov.in.
2. Click on the ‘For Employees’ section.
3. Choose ‘Member UAN/Online Services.’
4. Click on ‘Activate your UAN.’
5. Fill in your details like UAN, name, date of birth, and mobile number. Complete the CAPTCHA.
6. You will receive an OTP on your registered mobile number. Enter it to activate your UAN.

Details of the ELI Scheme:
– First-time employees earning up to ₹15,000 can receive one month’s wage in three parts.
– It assists in job creation, especially in the manufacturing industry, and offers incentives linked to EPFO for the first four years.
– Employers can get up to ₹3,000 per month for every extra employee hired, for up to two years.

Make sure you act quickly and don’t miss this chance to benefit from the ELI scheme!

New Delhi: ICICI Lombard General Insurance Company Ltd. saw its shares rise by 0.32% in trading on Wednesday at 01:39 PM IST. Approximately 4,145 shares were swapped during this time. The stock opened at Rs 1832.75, reaching as high as Rs 1837.95 and dropping as low as Rs 1800.00 today. The company’s shares have a 52-week high of Rs 2285.85 and a low of Rs 1354.80. At this point, the total market value of ICICI Lombard is Rs 90,402.53 crores.

Key Financials: For the quarter ending September 30, 2024, ICICI Lombard reported total sales of Rs 6,126.18 crores, which is a 9.3% increase from the last quarter’s Rs 5,604.89 crores and a 16.22% rise from Rs 5,271.06 crores in the same quarter last year. The company made a profit of Rs 693.95 crores, up 20.21% from the same quarter a year ago.

Shareholding Pattern: As of September 30, 2024, domestic institutions own 14.91% of the company, foreign institutions hold 24.75%, and promoters own 0.0%.

Valuation Ratios: According to NiftyStat, ICICI Lombard shares are trading at a price-to-earnings (P/E) ratio of 40.63 and a price-to-book (P/B) ratio of 6.80. A higher P/E ratio means investors believe the company will grow better in the future. The P/B ratio helps show how much investors are willing to pay for the company’s value, even if it’s not growing.

ICICI Lombard General Insurance Company Ltd. operates in the Non-Life Insurance sector.