Britannia Feels Strike Heat
- 25th March 2025
Aaj Ka Bazaar
The US market performed well on Monday, with the technology sector showing significant gains. The overall market sentiment remained positive throughout the day. This morning, Asian markets were mostly up, driven by easing tariff concerns. The dollar strengthened, reaching a three-week high against the yen and performing well against other currencies, which led to a decline in gold prices toward $3,000 per ounce. Investors are likely to monitor oil price movements closely after Russia downplayed expectations for quick progress in peace talks regarding Ukraine. The Indian market is poised to open higher on Tuesday, following a strong session for US equities fueled by hopes for tariff relief. The Indian government has proposed eliminating the equalization levy (EL), or digital tax, on online advertisements starting April 1, as part of 59 amendments to the Finance Bill 2025 currently being debated in the Lok Sabha. This move aims to bolster India’s efforts to avoid potential retaliatory tariffs from the US, which are set to take effect on April 2.
Markets Around Us
BSE Sensex – 78,243.85 (0.33%)
Nifty 50 – 23,723.60 (0.28%)
Bank Nifty – 51,822.55 (0.23%)
Dow Jones – 42,553.29 (-0.07%)
Nasdaq – 18,188.59 (2.27%)
FTSE – 8,638.01 (-0.10%)
Nikkei 225 – 37,809.69 (-0.05%)
Hang Seng – 23,383.80 (-2.18%)
Sector: FMCG
Strike Halts Gujarat Plant, Britannia Dips
Shares of Britannia Industries dropped to ₹4,754 on March 25 after the company announced that operations at its Jhagadia plant in Gujarat were partly disrupted due to a worker strike that began on March 24. Britannia is currently talking with employees to resolve the issue and is working to minimize supply disruptions using its other resources. Despite a solid Q3FY25 performance with ₹582.3 crore in profit and 7.9% growth in revenue, the stock has fallen over 22% in the past 6 months, underperforming the Nifty 50. The company’s EBITDA grew slightly, but margins dipped to 18.4%. Analysts remain mostly positive on Britannia, with many recommending a “buy” based on strong fundamentals, brand presence, and future growth potential. Britannia expects to maintain margins around 17–18% and plans only small maintenance-related spending in FY26. Management remains optimistic about a volume recovery and continued profitability through strategic pricing and cost controls.
Why it Matters:
This development matters because the strike at Britannia’s Gujarat plant can impact the company’s supply chain and short-term sales. Despite reporting healthy profits and revenue growth, the stock has already fallen over 22% in the past six months, reflecting investor concerns. Continued labor unrest could affect operational stability and weigh further on market sentiment.
NIFTY 50 GAINERS
TCS– 3695.50 (1.60%)
HCLTECH– 1638.00 (1.45%)
TRENT – 5121.50 (1.18%)
NIFTY 50 LOSERS
ZOMATO – 220.00 (-1.21%)
INDUSLND BANK – 662.25 (-1.03%)
SUNPHARMA – 1777.35 (-0.45%)
Sector : Aerospace & Defense
GRSE surges on German Vessel Deal
Shares of Garden Reach Shipbuilders & Engineers (GRSE), a defence PSU, jumped 5% to ₹1,790 after it signed a deal with a German company, Carsten Rehder, to build two more 7,500 DWT multi-purpose cargo ships. This completes an eight-ship order series, with the total contract value remaining around $108 million. These ships, built to carry heavy and specialized cargo like windmill blades, show GRSE’s capability in advanced shipbuilding. Recently, GRSE also signed a contract with PWD Nagaland to supply eight modular steel bridges, adding to its portfolio of over 5,800 bridges delivered across India and neighboring countries. Financially, the company is doing well—its December quarter revenue grew 37% year-on-year to ₹1,271 crore, with a 12% rise in net profit to ₹98 crore and a 55% jump in EBITDA to ₹75.63 crore. The stock’s recent move reflects strong order inflow, export focus, and a solid financial performance, making it a stock to watch.
Why it Matters:
GRSE’s deal with the German firm highlights its growing presence in the global shipbuilding market and ability to deliver specialized vessels. Completing the 8-ship series ensures consistent revenue flow and strengthens client relationships. Combined with strong financials and recent domestic contracts, GRSE is emerging as a key player in defence and infrastructure growth.
Around the World
Asian stock markets mostly moved higher on Tuesday, supported by gains on Wall Street and hopes that U.S. President Trump’s upcoming tariffs may not be as harsh as expected. Japan’s Nikkei rose 0.7%, with export stocks benefiting from a weaker yen, while the broader TOPIX index hit a 9-month high. Australia’s ASX 200 and Singapore’s Straits Times also gained, but South Korea’s KOSPI dipped 0.3% despite Hyundai’s $21 billion U.S. investment plan. China was the outlier—Shanghai indices fell slightly, and Hong Kong’s Hang Seng dropped 2% due to profit booking in tech stocks. Xiaomi fell 5% after a major share sale, and Alibaba lost nearly 3% after its chairman raised concerns over a bubble in the AI data center sector. While Japan’s domestic data was weak, rising wages and consumer spending could support growth, though it may also trigger more interest rate hikes by the Bank of Japan.
Option Traders Corner
Max Pain
Nifty 50 – 23500
Bank Nifty – 51000
Nifty 50 – 23600(Pivot)
Support – 23,491, 23,324, 23,216
Resistance – 23,766, 23,875, 24,042
Bank Nifty – 51434 (Pivot)
Support – 51,066, 50,428, 50,061
Resistance – 52,072, 52,439, 53,077
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