Infra & capital goods Q1 & more on today's market

PVR Inox launches 12-screen Superplex

PVR Inox recently unveiled a new Superplex at Forum Mall, Kanakapura Road, Bengaluru, marking the introduction of the first ICE theatres format in South India. This state-of-the-art cinema boasts top-of-the-line features, including SP4K Laser projectors, advanced Dolby Atmos audio, and RealD 3D screens, ensuring an immersive cinematic experience for moviegoers. The Superplex redefines luxury with its carefully curated wall and ceiling-hung artworks of iconic actors and actresses, blending text and screens to create a dynamic environment akin to a cinematic gallery in the foyer. With this launch, PVR Inox now holds the distinction of operating the largest multiplex network in India and Sri Lanka, encompassing an impressive 1702 screens across 360 properties in 114 cities.

Infra & capital goods Q1 preview

In the upcoming quarter, Q1FY24, the capital goods sector is poised for a promising performance, driven by excellent execution capabilities and a robust opening order book for most companies. With order books reaching all-time highs, there is an optimistic outlook regarding revenue growth, as healthy execution is expected to be a significant contributor. Both domestic and key export markets are likely to witness improved volumes, further bolstering the sector's prospects. Kotak Institutional Equities predicts that YoY execution for capital goods and most EPC (Engineering, Procurement, and Construction) companies will remain strong, mainly due to substantial order book expansion over the past 5-6 quarters. Analysts anticipate that numerous companies will experience robust order inflows, exemplified by the impressive order announcements from industry players like L&T, KEC International, Kalpataru Projects International, VA Tech Wabag, and Bharat Electronics.

Utkarsh Small Finance Bank debuts with 60% premium

On July 21, Utkarsh Small Finance Bank made an impressive market debut with a substantial 60 percent premium over its issue price, a result of robust IPO subscription figures and a bullish market environment. The stock's first trade on the NSE began at Rs 40, far exceeding the issue price of Rs 25 per share, while the BSE listing price was Rs 39.95. During the July 12-14 IPO period, the small finance bank garnered the second-highest subscription numbers of the current calendar year, with a remarkable oversubscription of 101.91 times. Qualified institutional buyers displayed strong interest, subscribing to shares 124.85 times their allotted quota, followed by high net worth individuals and retail investors with bids at 81.64 times and 72.11 times their respective allocated portions. Even the bank's employees participated actively, oversubscribing their designated quota by 16.58 times. These outstanding subscription numbers and favorable market conditions set the stage for Utkarsh Small Finance Bank's remarkable listing performance.

JSW Steel surges 3%

JSW Steel witnessed a 3 percent surge in its shares on July 21, following the release of an outstanding quarterly financial report. For the April-June quarter of FY24, the company reported a remarkable consolidated net profit of Rs 2,248 crore, showcasing a remarkable 189 percent increase compared to Rs 956 crore recorded in the same period last year. Moreover, the revenue from operations witnessed a significant 11 percent year-on-year rise, reaching Rs 41,771 crore, primarily attributed to higher volume growth. JSW Steel's profitability surpassed market expectations, with an operating margin of approximately 17 percent, surpassing analysts' anticipated figure of 12.5 percent. The impressive quarterly numbers have undoubtedly contributed to the positive market response, driving the surge in the company's share value.

Conclusion

In conclusion, the market on July 21, 2023, experienced a volatile session, with the BSE Sensex and NSE Nifty closing lower due to losses in IT, financials, and oil and gas stocks. Concerns about rising inflation, global recession worries, and the ongoing conflict in Ukraine contributed to the decline. However, there were positive developments in various sectors. PVR Inox launched an impressive 12- screen Superplex, setting new standards for cinema luxury and technology. The capital goods sector is anticipated to perform well in Q1FY24, driven by strong execution and a robust order book. Additionally, Utkarsh Small Finance Bank made a remarkable debut with a 60 percent premium, and JSW Steel reported stellar quarterly numbers, resulting in a 3 percent surge in its shares. While challenges remain, the market continues to witness exciting developments across various industries. Investors will closely monitor the evolving economic landscape for potential opportunities and risks.

Source - Moneycontrol