GM Breweries' Profit Dip
- 08th January 2025
Aaj Ka Bazaar
The US frontlines tumbled down on Tuesday after data showed resilience in the US economy, indicating that Fed could cut rates fewer times this year against the expectations of the market. The Asian markets also displayed a tepid performance, with Nikkei showcasing a weak performance during the trade led by weak US sentiments, while Hang Seng declined, led by the decline in tech stocks. On the domestic front, Indian markets are likely to open on a negative note, and we have a sense that the benchmarks will likely be under pressure from sellers during the day. After highlighting a mixed performance, with a heavy decline on Monday while making a rebound yesterday, we believe the negative global sentiments will also weigh in. On stock specific note, we remain largely positive on RVNL during the day after it signed an MOU with Dubai-based GBH International for infra projects in the GCC region.
Markets Around Us
BSE Sensex –78,129.17 (-0.09%)
Nifty 50 – 23,698.55 (-0.04%)
Bank Nifty – 50,109.20 (-0.19%)
Dow Jones – 42,527.79 (0.01%)
Nasdaq – 19,487.67 (-1.90%)
FTSE – 8,245.28 (-0.05%)
Nikkei 225 – 39,992.59 (-0.23%)
Hang Seng – 19,139.54 (-1.58%)
Sector: Beverages
GM Breweries Q3 Profit Declines
GM Breweries reported a 3% drop in net profit for the December 2024 quarter, earning Rs 22 crore compared to Rs 22.6 crore in the same period last year. Despite the decline in profit, its revenue from operations increased by 4% to Rs 644 crore, up from Rs 618 crore a year earlier. The company’s total income also rose by 3% to Rs 645.21 crore. However, this performance had little impact on its stock price, which remained flat, trading slightly lower at Rs 794 per share. Established in 1981, GM Breweries specializes in producing and selling alcoholic beverages, including country liquor (CL) and Indian-made foreign liquor (IMFL).
Why it Matters:
GM Breweries’ Q3 results highlight stable revenue growth despite a slight dip in profit, reflecting strong demand for its products. The performance of its stock post-results indicates market neutrality. As a key player in the liquor industry, its financial trends are relevant for tracking consumer and sector health.
NIFTY 50 GAINERS
DRREDDY – 1399.70 (3.56%)
ONGC – 269.00 (2.09%)
RELIANCE – 1255.40 (1.17%)
NIFTY 50 LOSERS
TRENT – 6610.20 (-3.84%)
SHRIRAMFIN – 2883.00 (-2.55%)
ADANIPORTS– 1152.35 (-1.84%)
Sector: Fintech
MobiKwik Shares Surge on Reduced Losses
MobiKwik’s stock surged nearly 14% on January 7 after the company reported a reduced net loss of Rs 3.6 crore for Q2 FY25, compared to Rs 6.6 crore in Q1. The loss was attributed to increased investments for future growth. Despite this, revenue rose 43%, which improved investor sentiment and boosted the stock to an intraday high of Rs 637.80 on the NSE. MobiKwik shares were listed in December 2024 at a 60% premium following strong demand during its IPO. The stock debuted at Rs 440 on the NSE and Rs 442.25 on the BSE, significantly higher than its issue price of Rs 279, giving the company a market valuation of Rs 3,890.14 crore.
Why it Matters:
MobiKwik’s narrowing losses signal improved financial management and growth potential, boosting investor confidence. The stock’s strong performance reflects optimism about its future profitability and expansion plans. With a 43% revenue jump, the company is positioned as a key player in the growing fintech sector.
Around the World
Asian markets showed mixed results on Wednesday, with Chinese stocks dropping as the U.S. blacklisted major firms like Tencent and CATL, further straining U.S.-China relations. Japanese markets fell after officials warned of potential currency market intervention, which could affect exporters due to the yen’s recent weakness. Meanwhile, South Korea’s KOSPI rose 1.1%, boosted by Samsung’s 2.7% gain despite weak earnings. Australia’s ASX 200 rose 0.6%, with inflation data fueling expectations of early rate cuts. Singapore’s Straits Times index gained 0.4%, while Indian markets were set for a positive open ahead of key earnings reports. Wall Street futures edged higher after Tuesday’s tech-led losses. Hong Kong’s Hang Seng fell nearly 0.9%, pressured by BYD’s 2% drop after labor law violation fines in Brazil. Uncertainty around U.S. interest rates and President Trump’s trade policies continued to weigh on sentiment, keeping markets cautious as 2025 unfolds.
Option Traders Corner
Max Pain
Nifty 50 – 23,900
Bank Nifty – 51,500
Nifty 50 – 23,713 (Pivot)
Support – 23,632, 23,556, 23,474
Resistance – 23,789, 23,871, 23,946
Bank Nifty – 50,206 (Pivot)
Support – 49,965, 49,728, 49,486
Resistance – 50,443, 50,684, 50,921
Did you know?
2 Million Indian Travelled to USA
The number of Indians who travelled to the United States in the first 11 months of 2024, up 26% from the same period last year.
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