M&M Finance bullish on housing loans, MGL acquires Unison Enviro & more

Nifty50: 17,711 ▲ 117 (+o.6%)
Sensex: 60,224 ▲ 415 (+0.6%)

Happy Holi dear reader !

Fancy a ‘gold gujiya’ this year?

It’s wrapped in 24K edible gold foil with a filling of pistachios, almonds and Kashmiri saffron. Drool worthy right?

You can get your hands on this gold gujiya at a sweet shop in Kanpur, UP. But be warned that it will cost you a whopping ₹30,000 per kg !

Let’s give you another reason to give into sweet cravings – as rang barse on Holi, dhan barse in the markets ! Investors gained ₹5.5 lakh crore in two sessions as the bull run continues.

• The markets continued their upward march.
• Out of the Nifty50 pack, 39 stocks advanced.
• Foreign investors have aided the market rebound.

Among the Nifty sectoral indices, Oil & Gas (+1.9%) and IT (+1.2%) were the top gainers, while Realty (-0.5%) and PSU Bank (-0.2%) were the sole losers.

What’s trending

⭐ M&M Finance bullish on housing loans 

The management of the non-banking finance company (+1.2%) expects its housing loan book to hit ₹20,000 crore-mark in next three years. As per management, the affordable housing segment will be a key contributor to the loan book growth. The lender’s housing loan book currently stands at around ₹8,000–₹9,000 crore.

⭐ MGL acquires Unison Enviro

Shares of Mahanagar Gas (+8.8%) rose sharply after it acquired 100% stake in city gas distributor Unison Enviro for ₹531 crore. The MGL management said that the new acquisition will help the company to enter new markets and support inorganic growth.

⭐ Theme park stocks on a roll

Shares of theme park operators Wonderla Holidays and Imagicaaworld Entertainment have risen 28% and 9%, respectively this month. Experts state that higher footfalls and the resumption of school trips have provided a boost to these companies.

⭐ Olectra secures new order 

The electric bus maker (+3%) has received an order to supply 550 electric buses to Telangana State Transport. This new order is worth around ₹1,000 crore and will be completed in 16 months.

In Focus

Consumer companies’ summer play

Have you been feeling the heat? It’s because India recorded its hottest February since 1901. And the country could be in for a prolonged and blistering summer this year, according to the weather department. 

While many of us sweat it out, rising temperatures could be beneficial for consumer companies. 

Cool drinks 

Experts state that the rising temperatures usually boost the sales of beverages. This could be beneficial for companies like Varun Beverages (carbonated drinks and juices) and Dabur (fruit juices). In fact, soft drink and juice makers’ sales were up 30% to 35% year-on-year in February, according to reports. Also, beverage companies like PepsiCo are launching celeb-led marketing campaigns to boost their sales.  

Ice creams 

It’s not just cold drinks, but the sales of ice-cream are also expected to rise. Hindustan Unilever, which sells ice-creams under the brand Kwality Wall’s, could be a beneficiary of this. Meanwhile, to take advantage of the long summer, the Mother Dairy management has ramped up sourcing, production and cold-chain infrastructure. 

Respite from heat

The usual line-up of summer coolants – like Emami’s Navratna hair oil and Dermicool prickly heat powder – are also expected to witness a rise in sales volumes. This, according to the management, could deliver reasonable growth in the March quarter.  

Cooling appliance   

Consumer durable companies are also looking to ride the long summer. They are anticipating high demand for summer products such as air conditioners, fans, coolers and refrigerators. Voltas is planning to take price hikes if the demand momentum remains strong. This could provide a boost to its margins or profitability, according to experts. 

While the temperatures soar across India, it remains to be seen whether the sales of consumer companies follow suit. 

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