Short Call | Change in repo rate unlikely at RBI MPC; Delta Corp awaits ease in GST, IEX shadow pilot, Trent in focus

For all practical purposes, home loans and car loans will continue to remain expensive and so will the equity market.

“The world changes. This is the biggest problem in markets.” - Bill Miller

Speaking of change, will the Reserve Bank of India (RBI) make any change to repo rate today? Seems unlikely. And, markets have priced that in. Investors will monitor banking, auto and real estate stocks closely as RBI Governor Shaktikanta Das spells out the fineprints. For all practical purposes, home loans and car loans will continue to remain expensive and so will the equity market.

Delta Corp (Rs 151, +10%)

The government could soften stance on the retro GST demand notices issued to online gaming companies

Bull view: Delta Corp has Adda52 under its subsidiary Deltatech Gaming. It has a tax shortfall of Rs 6000 crore, which could be waived off

Bear view: No clarity on casino GST yet. About Rs 16,000 crore of GST

shortfall is in the casino division. Delta Corp has been diversifying into real estate business, but that could take a long time to set the cash register ringing.

IEX Ltd (Rs 145, -5%)

Stock fell 5 percent after the Central Electricity Regulatory Commission (CERC) ordered a shadow pilot on market coupling of India's power exchanges.

Bull view: Growing power demand and decline In coal prices could result in increase in volumes.

Bear view: IEX's moat and leadership position is being challenged. The company's roadmap to maintain profitability is unclear. FIIs have reduced stake last quarter

Trent (Rs 3607.5, +18%)

Trent's net profit increased 39 percent YoY in Q3FY24

Bull view: Only value fashion company to make profits through its Zudio brand. Zudio changes inventory every 15 days and attracts customers. Strong profit growth of 47 percent CAGR over 3 years.

Bear view: Entry of Reliance's Youtsa, a value fashion focussed brand can taper the company's sales in the long run.

Gujarat Fluorochemicals (Rs 3,623, -0.68)

The company’s Q3 results were weak, it announced a Rs 6000 crore capex for its EV products subsidiary.

Bull view: Products in EV battery chemicals is expected to benefit the company. Nuvama says the company will benefit from its presence in 40% of value of LFP battery cost due to its varied product portfolio

Bear view: Topline and bottomline fell due to weak demand, destocking. China’s continuous weakness might force the companies to continue dumping.