Morning Update for 26 October 2021

Indices at previous closing

Nifty50: 18,125 ▲+10 (+0.05%)
Sensex: 60,967 ▲+145 (+0.24%)
Nifty Bank: 41,192 ▲+868 (+2.15%)

For more updates on F&O, click here.

In the news

SRF’s Q2 profit rises 

The Gurugram-based company reported net profit of ₹383 crore, up 21% year-on-year in the September quarter. It’s revenue grew by 35% to ₹2,843 crore. The strong growth in the top line was driven by its technical textile segment wherein it achieved higher sales volumes of nylon tyre cord, belting fabrics and polyester industrial yarns.

However, the management said that the company witnessed an increase in prices of key raw materials and logistics costs. Despite the strong performance, the shares of the company were down 6% yesterday. 

Colgate slips on subdued Q2 results

In the September quarter, the toothpaste maker’s net profit dropped by 1.8% year-on-year to ₹269 crore. The profit was dented mainly by a rise in its advertising costs. Meanwhile, the net sales rose 5.2% YoY to ₹1,334 crore. This was slightly lower than the street estimate of ₹1,370 crore.  

The management said that it witnessed growth momentum across categories and overall penetration trends remain strong. Meanwhile, the shares of the company were down 1.8% yesterday and have fallen over 8% so far this month.  

Ramco Cements net profit jumps two-fold

In the September quarter, the Chennai-based cement manufacturer reported a 117% year-on-year increase in its net profit to ₹519 crore, mainly supported by reversal of deferred tax liability to the tune of ₹304 crore. However, if one checks the profit before tax there is a sharp decline of 19%, despite a rise of 19% in sales to ₹1,510 crore. 

As per the company filings, the power and fuel (P&F) costs rose by 28%. Typically, P&F costs are about 25% of the total manufacturing cost. Meanwhile, shares of Ramco Cements were down 2.2% yesterday.

Sectoral indices (October 25)

Global markets (at 8:00 am)

Fact of the day

In 2014, Jack Ma's Alibaba raised $25 billion on NYSE, making it the largest-ever IPO globally. 

Source: Fortune

Yay 👍 or Nay 👎?
We'd love your thoughts on this morning update.

If you haven't already, open your Upstox account to get IPO-ready today! Click here to sign up.

To catch our latest educational videos, join our Telegram channel here.

Disclosures and Disclaimer

Investment in securities markets is subject to market risks; please read all the related documents carefully before investing. The securities quoted are exemplary and are not recommendatory. Past performance is not indicative of future results. Details provided in the above newsletter are for educational purposes and should not be construed as investment advice by RKSV group. Investors should consult their investment advisor before making any investment decision.