Forwarded from Research Reports
Citi Research sees 45% UPSIDE in Divi's Laboratories.pdf
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Citi Research sees 45% UPSIDE in Divi's Laboratories- Validation Drives Strong Beat, Commercial Volumes Can Transform Earnings Trajectory; Raise TP to Rs11,700
🟢Treasury has announced US Govt will buy back debt instruments.
US 30 Yr yield falls 🔻
Crude falls 🔻
Positive for equity and precious metals 🔥
US 30 Yr yield falls 🔻
Crude falls 🔻
Positive for equity and precious metals 🔥
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*🚨 FIRST CAS MANIPULATION CASE FOUND*
SEBI has passed an *ex-parte interim order* against an FPI and a local stockbroker, alleging prima facie manipulation of the *Closing Auction Session (CAS)* on *13 August* and wrongful gains of around *₹3.67 crore*.
*What happened?*
📌 *Sensex Weekly Expiry*
During the auction:
• Sensex moved *362 points in just 2 seconds*
• Then moved another *405 points in 28 seconds*
*1️⃣ Copthall Mauritius*
• Accounted for *86.6%* of the total gross buy value in the auction.
• Placed buy orders across all *30 Sensex stocks* at exactly *3% above the reference price* — the maximum permitted band.
• After the index moved, it cancelled around *₹98 crore* of orders.
• It held *Long Calls + Short Puts* for the expiry.
💰 Cash market cost: *₹57 lakh*
💰 Derivatives profit: *₹2.96 crore*
*2️⃣ Mansi Share & Stock Broking*
• Placed around *₹145 crore* of sell orders below the reference price.
• The orders allegedly helped keep the index lower while it exited its *Long Put* positions.
• Around *99%* of these orders were cancelled within just *3 seconds*.
• The cancellation itself moved the Sensex by around *233 points*.
⚠️ *Important Point:*
No individual order violated the CAS rules.
• *3% price band* was permitted.
• *Order cancellation* was also permitted.
However, SEBI's allegation is that the *intent and pattern of orders*, when viewed along with the participants' derivatives positions, amounted to *market manipulation*.
🔍 *SEBI's View:*
SEBI detected the activity within *6 days* and has indicated that CAS may actually make such unusual activity easier to identify compared with the earlier closing mechanism.
*But the bigger question is:*
❓ Has CAS made manipulation easier — even though it may also make manipulation easier to detect?
⚠️ *For Traders:*
CAS is still a relatively new market mechanism. On expiry days, avoid assuming that the *3:15–3:20 PM price is the final settlement price.*
*Closing auction movements can materially impact option P&L.*
SEBI has passed an *ex-parte interim order* against an FPI and a local stockbroker, alleging prima facie manipulation of the *Closing Auction Session (CAS)* on *13 August* and wrongful gains of around *₹3.67 crore*.
*What happened?*
📌 *Sensex Weekly Expiry*
During the auction:
• Sensex moved *362 points in just 2 seconds*
• Then moved another *405 points in 28 seconds*
*1️⃣ Copthall Mauritius*
• Accounted for *86.6%* of the total gross buy value in the auction.
• Placed buy orders across all *30 Sensex stocks* at exactly *3% above the reference price* — the maximum permitted band.
• After the index moved, it cancelled around *₹98 crore* of orders.
• It held *Long Calls + Short Puts* for the expiry.
💰 Cash market cost: *₹57 lakh*
💰 Derivatives profit: *₹2.96 crore*
*2️⃣ Mansi Share & Stock Broking*
• Placed around *₹145 crore* of sell orders below the reference price.
• The orders allegedly helped keep the index lower while it exited its *Long Put* positions.
• Around *99%* of these orders were cancelled within just *3 seconds*.
• The cancellation itself moved the Sensex by around *233 points*.
⚠️ *Important Point:*
No individual order violated the CAS rules.
• *3% price band* was permitted.
• *Order cancellation* was also permitted.
However, SEBI's allegation is that the *intent and pattern of orders*, when viewed along with the participants' derivatives positions, amounted to *market manipulation*.
🔍 *SEBI's View:*
SEBI detected the activity within *6 days* and has indicated that CAS may actually make such unusual activity easier to identify compared with the earlier closing mechanism.
*But the bigger question is:*
❓ Has CAS made manipulation easier — even though it may also make manipulation easier to detect?
⚠️ *For Traders:*
CAS is still a relatively new market mechanism. On expiry days, avoid assuming that the *3:15–3:20 PM price is the final settlement price.*
*Closing auction movements can materially impact option P&L.*
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Forwarded from Stock Insights 📰🗞️
Himadri picked up bankrupt Birla Tyres in 2023 for Rs 347 Cr
Banks had lent Rs 1,100 Cr, got back Rs 316 Cr. Plant was shut, making nothing. In its first full year after the restart, FY26, it did Rs 187 Cr in revenue. Now Himadri wants to grow it to Rs 3,000 Cr, roughly 16x from today.
Spending Rs 1,200 Cr on new equipment, adding 400 new tyre types, building fresh capacity for EV and SUV car tyres by FY28. Paid bargain price, investing heavily to rebuild.
Why would a chemical company buy a tyre brand?
Because Himadri already makes carbon black, which is what goes into making tyres. It also makes coal tar pitch, an anode material for batteries, and is now building cathode material plants. Carbon chemistry connects all of it.
Tyres need carbon black. EV batteries need anode and cathode compounds. Himadri supplies raw materials for both from the same factories. So buying Birla Tyres is not a random side bet. It is selling finished goods instead of just selling inputs.
Higher margins, more control over pricing :)
Himadri had Rs 315 Cr in debt in FY22 and earned 6% return on capital. By FY26 it became debt-free with Rs 121 Cr net cash and 32% return on capital.
Q1 FY27 profit grew 27%, Plans to hit Rs 1,100 Cr profit by FY28, funded entirely from own cash flow, no banks needed. Also building first large LFP cathode battery material plant outside of China.
Coal tar trader to EV materials maker without debt
Banks had lent Rs 1,100 Cr, got back Rs 316 Cr. Plant was shut, making nothing. In its first full year after the restart, FY26, it did Rs 187 Cr in revenue. Now Himadri wants to grow it to Rs 3,000 Cr, roughly 16x from today.
Spending Rs 1,200 Cr on new equipment, adding 400 new tyre types, building fresh capacity for EV and SUV car tyres by FY28. Paid bargain price, investing heavily to rebuild.
Why would a chemical company buy a tyre brand?
Because Himadri already makes carbon black, which is what goes into making tyres. It also makes coal tar pitch, an anode material for batteries, and is now building cathode material plants. Carbon chemistry connects all of it.
Tyres need carbon black. EV batteries need anode and cathode compounds. Himadri supplies raw materials for both from the same factories. So buying Birla Tyres is not a random side bet. It is selling finished goods instead of just selling inputs.
Higher margins, more control over pricing :)
Himadri had Rs 315 Cr in debt in FY22 and earned 6% return on capital. By FY26 it became debt-free with Rs 121 Cr net cash and 32% return on capital.
Q1 FY27 profit grew 27%, Plans to hit Rs 1,100 Cr profit by FY28, funded entirely from own cash flow, no banks needed. Also building first large LFP cathode battery material plant outside of China.
Coal tar trader to EV materials maker without debt
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Websites you can use for Investment Research:
1. Stock Screener - Company fundamentals
2. Cafemutual - MF industry updates
3. Value Research - MF analysis & ratings
4. Morningstar - Fund research Advanced
5. Advisorkhoj - MF data & tools
6. RupeeVest - MF analytics (Regular Plan)
7. PMS Bazaar - PMS research
8. Trendlyne - Stock screening & analysis
9. Equitymaster - Equity research Screener
10. IBEF - India industry data
11. IMF - Global macro data
12. TradingView - Charts & technicals
13. UnlistedZone - Unlisted stocks
14. AMFI India - Official MF data
15. StockEdge - Stock analysis
16. MF Central - MF portfolio & transactions
17. PMS AIF World - PMS/AIF data
18. Novel Investor - Valuation research
19. World PE Ratio - Global valuations
20. Macrotrends - 100 years Historical data
21. Economic Outlook - Economic research
22. India Macro Indicators - India macro data
23. Lazy Portfolio ETF - Global ETF research
24. MoSPI - Official statistics
25. PIB - Government updates
26. Fortune India 500 - Company rankings
27. ClearTax - Tax & finance
28. Zerodha Pulse - Market news
29. Trading Economics - Global economic data
1. Stock Screener - Company fundamentals
2. Cafemutual - MF industry updates
3. Value Research - MF analysis & ratings
4. Morningstar - Fund research Advanced
5. Advisorkhoj - MF data & tools
6. RupeeVest - MF analytics (Regular Plan)
7. PMS Bazaar - PMS research
8. Trendlyne - Stock screening & analysis
9. Equitymaster - Equity research Screener
10. IBEF - India industry data
11. IMF - Global macro data
12. TradingView - Charts & technicals
13. UnlistedZone - Unlisted stocks
14. AMFI India - Official MF data
15. StockEdge - Stock analysis
16. MF Central - MF portfolio & transactions
17. PMS AIF World - PMS/AIF data
18. Novel Investor - Valuation research
19. World PE Ratio - Global valuations
20. Macrotrends - 100 years Historical data
21. Economic Outlook - Economic research
22. India Macro Indicators - India macro data
23. Lazy Portfolio ETF - Global ETF research
24. MoSPI - Official statistics
25. PIB - Government updates
26. Fortune India 500 - Company rankings
27. ClearTax - Tax & finance
28. Zerodha Pulse - Market news
29. Trading Economics - Global economic data
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PCBL, HIMADRI SPECIALTY : CHINESE CARBON BLACK PLAYERS ANNOUNCE PRICE HIKES 🟢
●Carbon black prices in China are up ~26.5% YoY amid rising input costs and logistics issues.
●Major Chinese producer Jiangsu Youcai has announced a fresh carbon black price adjustment.
●Industry pricing is reportedly entering an upward cycle.
●Impact: Positive for PCBL & Himadri Specialty — firmer global carbon black prices could support realizations and margins.
●Carbon black prices in China are up ~26.5% YoY amid rising input costs and logistics issues.
●Major Chinese producer Jiangsu Youcai has announced a fresh carbon black price adjustment.
●Industry pricing is reportedly entering an upward cycle.
●Impact: Positive for PCBL & Himadri Specialty — firmer global carbon black prices could support realizations and margins.
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