Before Market Opens
23 January, 2024
- IPO Dates: January 23 to January 25, 2024
- Price Band: ₹39 to ₹41 per share
- Issue Size: ₹143.81 crores
- Listing Dates: Tentatively on January 31, 2024
Reliance Jio Infocomm has shown a notable performance in its Q3FY24 results, reporting a 12.3% year-on-year increase in net profit, amounting to Rs 5,208 crore. The company’s revenue from operations rose by 10.3% year-over-year to Rs 25,368 crore. Sequentially, the net profit saw a near 3% rise and revenue increased by 2.5%. However, operating margin experienced a slight decline, and total expenses, including network operating expenses and costs related to license fees and spectrum charges, also saw an increase
Reliance Industries Ltd reported its Q3 2024 results with an 11% year-on-year increase in net profit, reaching ₹19,641 crore. The gross revenue grew by 3.2% to ₹2,48,160 crore. The EBITDA rose by 16.7% with significant growth in various segments like Reliance Retail and Jio Platforms. The share price of Reliance Industries, as of the latest update, was ₹2,734.90, marking a slight decrease of 0.04% from the previous close.
The Reserve Bank of India (RBI), led by Governor Shaktikanta Das, has indicated that rate cuts are not currently being considered, prioritizing the control of inflation. As of January 2024, the RBI is focusing on maintaining an inflation rate of 4%, and recent figures show a rise to 5.55% in November. This stance is compounded by the agricultural challenges in North India, where reduced rainfall and snowfall during the winter of 2023-2024 have led to decreased agricultural output and crop quality. These conditions are expected to contribute to higher food prices, further increasing inflationary pressures. The RBI’s monetary policy decisions, including considerations for rate cuts, are being influenced by these economic factors, with a strong emphasis on inflation control amidst these complex agricultural and climatic challenges.
The decline in NHPC’s share price by more than 4% was attributed to the government’s offer for sale of its stake in the company. This kind of market reaction is not uncommon when a large shareholder, especially the government, decides to sell a significant portion of its stake in a public company. The market may perceive this as a potential increase in supply of the stock or interpret the sale as a change in the government’s stance on the company, which can lead to a decrease in the stock price.
The Sensex experienced a major crash, dropping over 1,600 points, influenced heavily by HDFC Bank’s worse-than-expected Q3 results, which saw its stock plunge by around 7.5% to 8.5%. Additionally, a broader decline in global markets, spurred by reduced optimism for rate cuts and weaker GDP data from China, contributed to the downturn. Geopolitical tensions, particularly related to Iran-backed Houthi rebels, also added to the risk-averse sentiment in the markets. This combination of factors led to a sharp sell-off, reflecting the market’s sensitivity to both domestic financial performance and international economic and political developments.
Angel One, a leading Indian stock brokerage firm, announced a solid financial performance for Q3 2024, marking a 14% year-on-year increase in consolidated net profit to ₹260 crore. This growth was primarily driven by a surge in orders and a significant expansion in client base. Despite a 14% sequential dip in net profit due to changes in cash segment orders and increased operational expenses, the company’s revenue saw a substantial hike of 41.4% to ₹1,059 crore. EBITDA also rose by about 23% to ₹398 crore. However, the company’s profit margin contracted compared to the previous year. In the stock market, Angel One’s shares demonstrated notable performance with a one-year return of 194.51%, though it experienced considerable volatility. The share price, as of January 16, 2024, stood at ₹3,329.90, reflecting an impressive 88.2% increase over the past three months. Angel One, offering diverse financial services including stock, currency, and commodity broking, continues to hold a significant position in the Indian financial services sector.
HDFC Bank, India’s largest private lender, has reported a significant surge in its third-quarter profits for FY2024. The bank’s standalone net profit reached 163.73 billion rupees ($1.97 billion), surpassing analysts’ expectations of 156.51 billion rupees and showing an increase from the previous quarter’s 159.76 billion rupees. This performance was underpinned by robust loan growth and a strong demand for credit, particularly during the festive season. While the bank’s net interest income (NII) saw a quarter-over-quarter increase to 284.71 billion rupees, it slightly missed the estimated 286.47 billion rupees. The core net interest margin (NIM) stood at 3.4% on total assets and 3.6% on interest-earning assets. Additionally, HDFC Bank reported a sequential rise of 4.8% in gross loans and a 1.9% increase in deposits, maintaining a steady gross bad loans figure at 1.26% of assets. The bank’s stock price closed at 1,679.15 rupees per share on January 16, 2024, reflecting the positive market response to its robust financial performance.
Medi Assist, a prominent third-party administrator in India’s insurance sector, is preparing for its IPO. The company boasts a dominant market share, serving a significant portion of general insurance companies in India, and has shown strong financial growth over recent years. Key strengths include a stable and trustworthy management team, advanced technology infrastructure, and significant partnerships with government healthcare programs. However, investors should be cautious about the high valuation, as indicated by a high price-to-earnings ratio, and the nature of the IPO, which is entirely an Offer For Sale by existing shareholders, meaning no new capital will be raised for the company. Additionally, the company’s reliance on insurance companies for outsourcing and increasing working capital requirements present potential risks. As with any investment, thorough personal research and consideration of individual financial objectives and risk tolerance are crucial before participating in the IPO