Today Stock Tips

55th Meeting of the GST Council

Here are some points from the meeting that could affect you.

Changes in GST Rates

🔸Fortified Rice Kernel (FRK) - Reduction in GST rate to 5% may impact the food processing industry and stocks related to fortified food products.
🔸Gene Therapy Exemption - Could influence healthcare sector companies focusing on advanced therapies.

Automotive Sector

🔸Increase in GST rate to 18% on sale of all old and used vehicles, including EVs, except specific types. This change might impact the used vehicle and EV markets.

Banking and NBFCs

🔸No GST on Penal Charges - Clarification that no GST is payable on penal charges for non-compliance with loan terms.

General Insurance and Motor Vehicle Accident Fund

🔸Contributions made by general insurance companies from third-party motor vehicle premiums are exempt from GST. This exemption might marginally reduce costs for insurance companies.

E-commerce and ITC Clarifications

🔸Input Tax Credit (ITC) clarifications related to goods delivery and tax reversals may simplify compliance for companies operating in e-commerce and logistics, possibly benefiting investors in these areas.

Track and Trace Mechanism

🔸Introduction of a unique identification marking system for evasion-prone commodities might influence the logistics and supply chain sector, relevant for companies dealing with goods subject to GST.

Compliance Simplifications

🔸Reduction in pre-deposit for appeals involving only penalty amounts could ease the legal and compliance burden on businesses, potentially benefiting small and medium enterprises.

🩷 & 🔄 for better reach!
Disclaimer: bit.ly/full-disclaimer

Biosecure Act Delayed: Indian CDMOs in Focus

🔸Top Picks - Piramal Pharma Ltd (₹280) and Syngene International Limited (₹1,030).

🔸The US Biosecure Act, aimed at reducing dependence on Chinese CDMOs , is delayed due to Senate recess, with possible modifications to focus on de-risking guidelines.

🔸Global companies have already started diversifying supply chains, creating opportunities for Indian CDMOs.

🔸Indian players like Divi’s, Syngene, Piramal Pharma, Hikal, and GLS invested ₹9,600 crore in capex (FY21-24), driven by supply chain shifts rather than reliance on the Act.

🔸Piramal Pharma targets $1.2B CDMO sales by FY30, reflecting robust sector growth even without the Act's implications.

🩷 & 🔄 for better reach!
Disclaimer: bit.ly/full-disclaimer

💼 Aster DM Health and QCIL Merge 💵

🔸 The merger creates one of India's top 3 hospital chains with combined revenue of ₹7,314 crore, EBITDA of ₹1,396 crore (~19% margin), bed capacity of 10,150, and ARPOB at ₹39,100.

🔸 Management anticipates 23-25% margins in 3-4 years, driven by operational improvements and greenfield/brownfield expansions.

🔸 Aster - 36.6x FY24 EV/EBITDA
🔸 QCIL - 25.2x FY24 EV/EBITDA
🔸 Combined Entity - 21x FY26 EV/EBITDA (EV ₹42,200 crore, assuming 20% EBITDA growth in 2 years).

🔸 Aster shareholders gain with improved RoCE, margins, and financial growth potential post-merger.

🔸 The current ARPOB of ₹39,100 is a significant discount to Pan-India hospitals. Improvements here could significantly enhance the financial performance

🏠 Housing Sales Momentum Strong, Likely to Sustain

🔸 Housing sales across the top seven cities reached 2.3 lakh units (₹3.8 lakh crore) during Jan-Sep 2024, marking a 17% growth in volume and 9% in value compared to 2023 (1.96 lakh units, ₹3.49 lakh crore).

🔸 Mid-Segment (₹50 lakh–1 crore) -39% of sales.
Upper-Mid Segment (₹1–3 crore) - 35%, indicating rising premiumization.

🔸 By year-end, sales are expected to surpass 3 lakh units worth ₹5.1 lakh crore across 485 million sqft.

🔸 Strong momentum will likely continue, driven by anticipated rate cuts and robust new launches.

🔸 Top Stock Picks
• Brigade Enterprises - Diversified portfolio; Target Price - ₹1,450
• Mahindra Lifespace - 5 x sales in 5 years; Target Price - ₹610.

Nifty Targets 25,200 Amid Breakouts

🔸 Nifty broke out of a five-week consolidation (24,500-23,300), ending at 24,650 (+2%) as RBI policy drove gains.

🔸 Breakout signals a move toward 25,200, with support at 24,000.

🔸 Bank Nifty’s breakout suggests it may soon challenge its all-time high 54,400.

🔸 Nifty Midcap and SmallCaps surged (+9% and +12%), with SmallCaps nearing its all-time high.

🔸 Market breadth improved, with 56% of Nifty 500 stocks above their 50-day SMA.

🔸 Domestic markets may rally, tracking global highs in DJIA and DAX.

🔸 BFSI, Infra, IT, and Pharma show strength, while Realty and Metals offer value buy.

Market Closing Bells for 6th December 2024

* BSE Sensex: 81,709.12 (-0.07%)🔻

* Nifty 50: 24,677.80 (-0.12%)🔻

* BSE Smallcap: 57,050.71 (0.60%) 🟢

* S&P BSE Midcap: 47,669.72 (0.35%)🟢

Source - Money Control, NSE, BSE

FII Buying Trends in Late November 📊

Turnaround in Investment 💹:
   ● FIIs became net buyers, purchasing ₹1,311 crore in the second half of November, reversing heavy selling of ₹23,913 crore earlier in the month.
   ● FIIs’ share in Indian equity rose to 16.09% from below 16% in October.

Sectoral Buys 🛒:
   ● Financial Services: ₹9,597 crore
   ● IT: ₹2,429 crore
   ● FMCG: ₹2,184 crore
   ● Other notable buys:
      ○ Realty: ₹1,367 crore
      ○ Capital Goods: ₹681 crore
      ○ Consumer Services: ₹471 crore
      ○ Consumer Durables: ₹426 crore

Key Sell-offs 🔻:
   ● Oil & Gas: ₹6,132 crore
   ● Automobiles: ₹3,053 crore
   ● Telecom: ₹2,942 crore
   ● Construction Materials: ₹1,913 crore

Stock Market News Update 📉

1.GST ON SIN GOODS TO BE HIKED TO 35% ?
GST panel proposes 35% GST on Tobacco, Cigarettes and aerated drinks: Report

2.POLITICAL CRISIS IN SOUTH KOREA
South Korean president declares emergency martial law, accusing opposition of anti-state activities

3.Anil Ambani-owned Reliance Power share price hits 5% upper circuit

4.RVNL share price gains 3% as it secures East Central Railways project worth ₹187 Crore

5. Paras Defence, HAL to Bharat Dynamics: Defence stocks rally as DAC okays acquisition worth ₹21,772 crore

6. Swiggy stock gains 3 percent as Q2 revenue rises, losses narrow

7. Zen Technologies falls over 7% as stock worth Rs 386 crore traded in block deal

View on Market Performance - 3 Dec

Nifty rose for the third consecutive session on December 3, closing at a one-month high of 24,457.2, up 0.75% (181.1 points).

Cash market volumes on the NSE increased by 16% to Rs.1.15 lakh crore. Broad market indices outperformed Nifty, with a 2.8:1 advance-decline ratio.

Asian markets rose, fueled by optimism over US gains and potential Chinese economic measures. European shares also climbed, driven by tech and resources sectors, amid political uncertainty in France.

Nifty is approaching the 24,450-24,500 resistance levels, with a bullish trend in place. A breakout above 24,500 could target 24,900, with immediate support at 24,300.