Market Highlights

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Get the latest Indian stock / share market highlights, BSE/NSE stock news, business research reports & details - updated daily by Money Times.

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February 11, 2025

• C2C ADVANCED SYSTEMS— FULL OF RED FLAGS ?
• Following an investor complaint, NSE ordered an independent review of C2C Advanced Systems Ltd’s financial disclosures in its Red Herring Prospectus (RHP). Despite NSE’s directive to disclose the findings with their comments, the company failed to do so. As a result, the observations are now being made public
• Fake Financial Disclosures
• C2C’s Red Herring Prospectus (RHP) and actual financials don’t match!
• Loans Payable to C2C Innovations Pvt Ltd: ₹1,329.02L, but RHP reports only ₹13.29L
• Payments to KTI Intelligent Systems: ₹369.40L, but RHP disclosed ₹118.83L
• Loans from PVR Multimedia: RHP shows ₹285.25L repaid, but books show ₹285.25L received
• Advances from Realtime Techsolutions: RHP says ₹11.76L, but books show ₹0L
• Fake Order Book?
• wo different order book values in RHP: ₹6,527.45L vs ₹5,056.18L
• ₹756.96L of orders from OSI Maritime included without any valid contract
• ₹1,685.15L of orders from related-party companies, raising serious doubts on legitimacy
• 78% Sales Still Uncollected
• Total Sales: ₹9,448.31L
• Outstanding receivables: ₹7,445.12L (78%)
• Key red flags:
• ₹6,987.10L (74%) sales came from just 4 related-party customers
• Two customers—Synergy Log-in Systems & Synergy Information Technologies—were NOT even disclosed as related parties in the RHP
• No Softex forms filed for software exports, violating FEMA rules
• Shell Customers?
• C2Ci Inc (USA)
• •Has 3 different addresses in various documents
• •Public records show no existence at those addresses
• •Same signatory as Synergy Information Technologies
• Synergy Information Technologies
• •Listed at non-existent postal code
• •Website is same as Synergy Log-in Systems
• •Not even in the same industry as C2C
• Realtime Techsolutions Pvt Ltd
• •Financial defaulter
• •₹307.40L of payments made on behalf of RTTS, including ₹161.84L in salary payments
• Bogus Vendors & Purchases
• 85% purchases from just 4 vendors
• 3/4 vendors were proprietorships with no public presence
• One vendor had NIL revenue for 5 years
• One vendor was untraceable during verification
• Where Did the Money Go?
• C2C raised ₹5,885.54L via private placements.
• ₹3,151.07L (54%) came from investors outside related parties
• Rs. 625L paid as “consultancy fees” (that’s 20% of funds raised!)
• Shares issued to individuals linked to those who got these fees
• More Shady Loans & Advances
• •₹624.39L loans to related parties, with no agreements!
• •Realtime Techsolutions defaulted on bank loans but still got ₹560.81L from C2C
• •Interest was charged selectively, with most loans being interest-free
• Manipulated Financials
• Purchases shot up from 10% of sales to 47% post-March 2024
• ₹966.46L “inventory” recorded without any actual deliveries
• Sudden spikes in purchases & sales near year-end
• One-third of the 266 SMEs that listed since the beginning of 2024, are trading in the red!
• Many of them were oversubscribed many times over, and some of them had listing-day gains too! (BL)
• ACTION FOR DAY
• India Energy Week through Feb 14 in New Delhi.
• Q3 earnings-Berger Paints, MOIL, Lupin, NBCC, IRCTC, EID Parry, Kirloskar Oil, Birlasoft Ltd, Vodafone Idea, Huhtamaki India, Ircon Intl., Devyani Intl., Guj Inds. Power, Schneider Elect., SAIL.
• Corporate action/board meetings:
• Vedanta board to mull fundraising
• India’s central bank to conduct auctions for state govt bonds and daily variable rate repo
• Fed Chairman Jerome Powell gives semiannual monetary policy testimony to Senate Banking Committee.
• BOE Governor Andrew Bailey to speak.
• -VE READ FOR PAINT STOCKS
• GRASIM INDUSTRIES
• Morgan Stanley-Good Traction In Paints in Q3
• Production steadily ramping up
• Product portfolio at 170 vs 129 QoQ
• SKUs at 1,000 vs 900 QoQ
• Distribution network at 131 depots vs 114 QoQ
• Geographic presence at 5500 towns vs 4300+ towns QoQ
• UBS on Eicher
• Downgrade to Neutral from Buy; Cut TP to Rs 5650 from Rs 5950
• Q3: margin miss due to change in mix and higher marketing cost
• Pivot to growth to restrain margin expansion
• Like the growth pivot, but downgrade owing to significant outperformance
• See outperformance compared to industry, but we do not see margin expansion
• MS on Eicher
• Maintain Underweight; Hike TP to Rs 3855 from Rs 3655
• Weaker than Expected Q3
• EBITDA missed estimates owing to weaker mix plus higher promotional and launch expenses
• Growth over margins is the right strategy
• Stock pricing in high growth and high margins, achieving both will be tough
• PHARMA STOCKS ; Indian Pharma Market grew 8.4% in Jan’25 Vs 6.5% in Dec’24
• Unit growth turned positive at 1% for Jan’25 vs -1% in Dec’24
• FDC,IPCA, JB, Pfizer, Sun, Abbott, Zydus and Intas outperformed the market - NDTV PROFIT
• SAMHI HOTEL ; SAMHI Hotels Completes Sale of Hotel Asset in Chennai OMR
• SAMHI Hotels sold its subsidiary, Duet Chennai OMR, for ~INR 53.5 Cr . Acquired in August 2023, it owns Four Points by Sheraton, Chennai OMR (116 rooms).
• For the nine months ending Dec 2024, it reported INR 11 Cr revenue, INR 2.3 Cr EBITDA, and INR 3.3 Cr net loss.
• CEO Says "This sale aligns with our asset recycling strategy, reducing debt and freeing capital for key projects in Hyderabad, Bengaluru, and Pune."
• Shriram Properties signs JDA for a prime land parcel in Chennai. 3.2 lakh sqft saleable area with ₹350-400 crores revenue potential
• Craftsman Automation
• MIRAE ASSET MUTUAL FUND: Sold 140093 shares at Rs 4,078.36
• HSBC ON M&M
• Maintain Buy, TP 3520 (FROM 3390)
• Do not see downside risk to growth expectations on the back of strong SUV orderbook
• In FY26-SUV business will continue to outperform the industry
• Tractors will outperform with better growth in the south
• In light of an overall weak PV demand environment, like M&M’s diversified business
• INVESTEC ON ALKEM LAB
• Maintain Sell, TP 5250 (FROM 5335)
• Acute heavy India biz continues to underperform peers
• Going forward, Co expects to grow in line with IPM growth, despite chronic expected to grow faster.
• It is taking time for a large ship to move to higher growth.
• Overall muted growth and expected increase in FY27 tax rate will result in single-digit EPS growth.
• Prefer Mankind & JB Pharma – Cipla & Glenmark also good proxies with high India exposure
• MORGAN STANLEY ON VARUN BEVERAGES
• Maintain Overweight, TP 674
• Reitererate guidance for volume and margins in CY25
• Growth momentum remains strong Q1CY25
• Management is not seeing any effect of competition from Campa in India
• The market already had 20% share of B brands, which were cheaper than Pepsi.
• Distribution expansion opportunity in double digits from 4mn outlets remains the growth driver
• Market large enough to accommodate new competition.
• MORGAN STANLEY ON OIL INDIA
• Maintain Overweight, TP 625
• Less of oil price play
• Undiscovered play on rising demand for gas as power demand for GenAI increases
• See a $4bn opportunity as earnings should grow 50% over over next 3 years
• Local infra inflects while global power demand picks up
• Attractively prices vs global upstream players
• MS ON GRASIM
• MAINTAIN BUY TARGET: 2,950
• Q3 EBITDA Below Est, Largely Led By Lower VSF Profitability
• New Biz Revenues Jumped 52% QOQ & EBITDA Loss Shrinks To 325 Cr Vs ₹350 Cr Loss QoQ
• Paint Segment Rev Improved, B2B eComm Revenue Also Grew
• Net Debt Increased As Paint Capex Touches 90% Of Target
• MS ON APOLLO HOSPS
• MAINTAIN OVERWEIGHT
• TARGET: 8,159
• Cons Revenue Led By 15% YoY Growth In AHLL & Apollo Healthco
• 13% YoY Growth In HC Services Segment
• Consolidated EBITDA Was Up 24% YoY, In-Line With Estimates
• Working With Microsoft To Advance Healthcare Ai With Focus On Disease Progression & Genomics
• 24/7 Cash Losses Reduce QoQ But GMV Growth Has Also Moderated
• Retail Insurance Sourcing To Start In Q4FY25
• MS on Crompton Cons
• UW, TP Rs 402
• Butterfly: Flat revenue but beat on profits
• Revenue: Flat YoY; MSe: 8%.
• EBIT: Rs116mn; MSe: Rs78mn
• EBITDA margins: +620bps YoY.
• HSBC on Delhivery
• Buy, TP cut to Rs 400
• FY25 Q3 rev growth as well as profitability missed expectations on muted growth in Express Parcel business
• Management highlighted industry profit pool has reduced & remains hopeful of consolidation
• Cut EBITDA est. by c12-13% over FY26-27e
• MS on FSN E Com
• OW, TP Rs 200
• Both revenue growth & EBITDA margins saw a strong beat
• Like consistent top-line delivery in Beauty over last few quarters in an overall weak demand environment
• View FSN as a consumer business with a technology edge
• CITI on Swiggy
• Initiate Buy, TP Rs 480
• Significantly Improved Gameplay
• Long-term Growth Outlook in FD and QC Robust
• Platform + First-mover Advantage in QC Position Swiggy well
• Expect Focus on Market Share Through 2025; Profitability to Follow in 2026
• BofA on Nykaa
• Maintain Underperform with target price of Rs 150
• In-line Revenues; EBITDA margins see a small inch up QoQ
• See risks on margin trajectory & fashion biz
• L&T and Powerchina win Hafeet Rail facilities deal worth over Rs 25,000 crores
• https://www.agbi.com/logistics/2025/02/contracts-awarded-for-3bn-oman-uae-rail-network/
• India plans to lower tariffs and gradually remove extra import levies as local manufacturing strengthens, a finance ministry official said. Ahead of Modi’s US visit, India cut high tariffs on 8,500 goods and pledged to accept illegal migrants while keeping the dollar for trade.
• CANTABIL RETAIL INDIA LIMITED
• Result Release – Q3 & 9M FY 25
• Q3 HISTORIC PERFORMANCE
• - RECORD SSG of 17.7% in Q3FY25
• - Highest Ever Quarterly Revenue of ₹223 crores in Q3 FY25 up by 28% y-o-y
• - ⁠Highest Ever Quarterly EBIDTA of ₹ 72.5 crores in Q3 FY25 up by 34% y-o-y
• - ⁠Record PAT for Q3 FY25 at ₹ 34.4 crores up by 43% y-o-y
• 9M FY 25 performance
• - SSG of 6.4% in 9M FY25
• - Revenue of ₹502 crores in 9M FY25 up by 19% y-o-y
• - EBIDTA of ₹ 146.4 crores in 9M FY25 up by 24% y-o-y
• - PAT for 9M FY25 at ₹ 52.3 crores up by 19% y-o-y
• Total Store 576 | Net Store addition 43 in 9M FY25
• #NewsFlash | @RBI to conduct OMO purchase for ₹40,000 crore on February 13 Vs earlier notified amount of ₹20,000 cr