Short Call | Retail desperation on Street; Voltas rebounds, Indigo in line of fire, Zomato zooms, Just Dial rings louder

retail investors desperate to make some money from the bull run on Dalal Street.

Anecdotal reports suggest many individual investors who have so far stayed away from the market are now getting desperate to earn something from the ongoing rally, even if only for bragging rights at social gatherings. Seasoned market players say the last 10 percent rally is the worst possible entry point. Because even when the market reverses its course, many are apt to think that it is only another intermittent correction in a long term bull market. But historical trends are the last thing that retail investors want to look at when they hear stories about everyone around them making loads of money. And markets don’t make a top till the last sceptic on the Street becomes a believer.

The stock hit a 52-week high on Monday.

Bull argument: Majority view on the Street is that earnings may have bottomed out, strength in other verticals should offset softness in core cooling business.

Bear argument: The company still needs to show that it can regain lost market share without giving up margins.

The company has been under fire due to delayed flights.

Bull argument: Dominant player in near duopoly market. Crude prices have been stable, and base fares have risen, helping margins.

Bear argument: Erstwhile promoter Gangwal family's stake an overhang. Recent flight delays could lead to some loss in market share as fliers switch loyalties.

Q3 net profit grew 22 percent.

Bull argument: Growth driven by growth in paid subscriber base and by better realisations. The B2B listing portal has unlocked potential.

Bear argument: Low return on equity. Paid campaigns have remained below pre-covid levels.  Analysts at Nuvama said the company is not looking to invest in new initiatives despite losing specialised categories to Zomato and Urbanclap.

The Israel-Hamas war and the Red Sea attack have raised concerns over the

project exposures in the Middle East.

Bull argument: Analysts expect the impact to be minor as it does not have exposure to direct conflict zones. Further, L&T may secure a multi-billion dollar contract from Saudi Aramco in 4QFY24.

Bear argument: The rise in ocean freight costs may continue to adversely impact EBITDA margin.

After the market hours, the company reported a 40 percent year-on-year rise in Q3 revenues.

Bull argument: Client base rose 55 percent YoY, number of orders up 57 percent YoY. Market share in retail turnover increased 5.29 percentage. Given the upbeat mood in the market, the strong business performance could sustain for a while.

Bear argument: Pace of growth could slow as base getting bigger. Sequential growth was tepid. Investments in new initiatives could keep profit margins in check.

Around 4.5 crore Zomato shares exchanged hands in trade in a block deal.

Bull argument: The recent 33 percent hike in convenience fee from Rs 3 to Rs 4 per order in key markets should help margins. A clutch of foreign funds have bought into the stock.

Bear argument: Aggressive store addition plans for Blinkit would be a drag on margins.