New Leadership Boosts Religare Stock
- 21st February 2025
Aaj Ka Bazaar
The US frontlines registered a decline on Thursday’s trading session, with S&P snapping its two-day string of registering record highs and DJIA exhibiting the steepest loss amongst the three. The weak sentiments dominated the market after Walmart’s dampened forecast on consumer demand. The Asian markets remain mixed, with the Nikkei posting a weak debut on account of a stronger Yen and weakness in auto amidst the tariff concerns while Hang Seng remains strong. The Indian markets are expected to make a tepid start, as indicated by Gift Nifty, with weakness likely to persist, given the overall weak global market sentiments.
Markets Around Us
BSE Sensex –75,453.16 (-0.37%)
Nifty 50 – 22,816.45 (-0.42%)
Bank Nifty – 48,957.65 (-0.76%)
Dow Jones – 44,195.15 (0.04%)
Nasdaq – 19,967.41 (-0.44%)
FTSE – 8,662.97 (-0.57%)
Nikkei 225 – 38,709.25 (0.09%)
Hang Seng – 23,238.42 (2.85%)
Sector: Investment Company
Burman family secures control, shares rise
Religare Enterprises’ shares jumped over 9% on February 21 after the Burman family secured majority control and became the company’s promoters. Their ₹2,116 crore open offer to acquire an additional 26% stake saw weak response, with only 0.07% equity tendered. Despite this, the Burmans now own 25.16% of Religare through entities like Finmart, Puran Associates, VIC Enterprises, and Milky Investment. The family, known for its stake in Dabur and Eveready, had gradually increased its holdings, buying a 3.6% stake for ₹277 crore in January 2024. Moving forward, they aim to stabilize the company, improve governance, and drive sustainable growth. Religare’s leadership and board will work with them to refine strategy and maximize long-term value. Shares were trading at ₹239.09 on the NSE at 9:34 AM. Traders see this as a shift in control that could bring structural improvements, while younger investors may find it a sign of renewed direction for the company.
Why it Matters:
The Burman family’s control of Religare Enterprises signals potential stability, better governance, and long-term growth, which could boost investor confidence. For traders, this shift may lead to structural improvements and better financial performance. For young investors, it highlights how strategic ownership changes can reshape a company’s future.
NIFTY 50 GAINERS
HINDALCO– 650.1 (1.77%)
EICHERMOT – 4948.15 (1.22%)
NTPC – 328.4 (1.00%)
NIFTY 50 LOSERS
M&M – 2738.55 (-3.55%)
DRREDDY – 1150.35 (-1.76%)
ULTRACEMCO – 11089.9 (-1.75%)
Secto: Hotels & Resorts
Indian Hotels rises on Morgan Stanley call
Indian Hotels’ stock rose 2% to ₹776 on February 21, continuing its five-day winning streak after Morgan Stanley maintained an ‘overweight’ rating with a price target of ₹856, indicating a 12.5% upside from its last close of ₹761. Despite a 13% drop in 2024, strong support from Mumbai’s hospitality market and rising revenue per available room (RevPAR) in key cities like Mumbai and Delhi have boosted confidence. The company reported a solid Q3 performance with a 29% YoY profit increase to ₹582 crore, driven by 29% revenue growth to ₹2,592 crore and EBITDA expansion to ₹1,020 crore. Margins improved to 39.4%, fueled by new businesses and steady demand in existing hotels. Analysts expect continued growth supported by weddings, events, and business travel. As of 9:20 AM, shares were at ₹775, up 1.8% on the NSE. For traders, this signals resilience, while young investors see long-term potential in the sector.
Why it Matters:
Indian Hotels’ strong performance and Morgan Stanley’s bullish outlook suggest potential upside, attracting traders and long-term investors. Rising revenue, profit growth, and demand resilience indicate stability in the hospitality sector. For young investors, it highlights how market trends and analyst ratings influence stock movements.
Around the World
Asian stocks traded in a narrow range on Friday as concerns over U.S. trade tariffs and high interest rates persisted, while Alibaba’s strong earnings fueled a rally in Hong Kong. Japanese markets were flat after higher-than-expected inflation data raised expectations of more Bank of Japan rate hikes. China’s mainland stocks lagged as an AI-driven rally cooled, though Alibaba’s 8.5% surge lifted Hong Kong’s Hang Seng by over 2%, boosting stocks like Tencent andJD.com. Japan’s inflation hit a two-year high, strengthening the case for more rate hikes, but factory activity remained weak. Australia’s ASX 200 fell 0.2% as investors took profits, though Domain Holdings jumped 50% on a $1.7 billion takeover offer. South Korea’s KOSPI dipped 0.2% amid political jitters, while Singapore’s market stayed flat. India’s markets faced pressure from economic slowdown fears and potential U.S. tariffs, with Nifty 50 futures signaling a weak open.
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