Short Call: Bulls take shine to cement stocks, Dr Reddy’s, Cipla, HUL, Fine Organics in focus

Most cement stocks are not exactly cheap, but the recent underperformance makes them look relatively less expensive than some of other fancied sectors.

UltraTech's decision to buy 23 percent in India Cements has reignited interest in the cement sector. While outlook on the industry has been positive for a while, the stocks have been underperforming for a while now. The main reason is that cement prices have been under pressure despite good demand, with leading players busy undercutting each other. Monsoon is typically a slack season for cement companies and so bulls may go slow for some more time. Most cement stocks are not exactly cheap, but the recent underperformance makes them look relatively less expensive than some of other fancied sectors. But much will depend on whether the big players are able to exercise pricing discipline.

Inked pact to acquire UK-based Haleon's nicotine replacement portfolio

Bull case: Haleon acquisition to expand consumer health offerings. Steady contribution from Revlimid, drug shortages in the US and healthy performance in key markets of US generics and other countries to ensure sustained growth, MOFSL believes.

Bear case: Delay in approvals and launches of new drugs, increased regulatory scrutiny from the US FDA and earlier-than-anticipated moderation in Revlimid contribution remain major risks to earnings downside.

Snapped a 7-day losing streak following the USFDA Form 483 observations for the Goa plant.

Bear case: Some of the (USFDA) observations are severe in nature and could likely delay key pending approvals viz. gAbraxane, a high-value product, says Antique Stock Broking.

Bull case: Consistent operating performance, strong growth in domestic business. Analysts hopeful that the company will be able to meet margin guidance for this year.

Has gained over 12 percent this month.

Bull Case: Strong growth momentum in the domestic market. Signs of revival in export markets, particularly in the US. Potential offshore acquisitions could address capacity concerns and drive growth.

Bear Case: Near-term growth challenges due to supply constraints. Weak demand in Europe remains a concern.

FY24 annual report provides insights on key focus areas

Bull case: Gradual volume recovery expected in FY25. Potential turnaround in beauty and personal care products and food and refreshment segments. Best prepared among peers in technology and e-commerce strategy to handle disruptions.

Bear case: Rupee depreciation to make imported raw materials costlier. Price war in popular segments could hurt margins. Easing raw material prices could increase competition from regional players.

(With inputs from Vaibhavi, Harshita, Neeshita, and Lovisha)