• Vedanta: This mining company’s stock is buzzing after the company announced a review of the company’s businesses that will lead to a reorgainsation creating individual standalone entities in the aluminium, iron and steel, and oil and gas business. Nearly a week after this announcement, two promoter group entities—Twin Star Holdings and Vedanta Netherlands B.V.—together bought 5.7% stake in Vedanta.

Then, as a seventh encumbrance on their shareholding in Vedanta (65.18%), promoter group entities used their entire shareholding in the company as a guarantee to lenders to raise $800 million from Standard Chartered Bank, London. For context, Vedanta’s entire promoter shareholding is already pledged, and this is an additional encumbrance. This additional encumbrance, which is reported under SEBI’s pledged shares rules to stock exchanges, was executed to help Vedanta’s promoter entities buy additional shares in the company.

• Tata Teleservices (Maharashtra): This communications solutions provider’s stock is the highest gainer among the Nifty 500 companies over the past week. The rise in its stock price has also made it one of the most overbought stocks, and this probably led its stock to be the most overbought according to technical indicators like RSI and MFI. This enthusiasm among investors and traders in the company’s stock is bewildering considering it hasn’t reported a quarterly profit since Q4FY19.

• Hero Motocorp: This two-wheeler maker’s stock was meandering along sideways since the declaration of Q2FY22 results on November 15, 2021. Net profits fell 17% YoY to Rs 794 crore and revenue from operations fell 11% YoY to Rs 8,543 crore. Even after this tepid performance during the quarter, brokerages maintain a ‘Buy’ rating on this company’s shares.  Analysts at brokerages seem optimistic about volume growth in 2HFY22 because of rural economic recovery, improving exports, and expansion in the electric vehicle (EV) segment. However, analysts at  Axis Securities and Prabhudas Liladher, who reduced their target price, believe a reduction in commodity prices in 2HFY22, and rising exports will drive up growth. LKP Securities and IDBI Capital upgraded their target price due to higher sales and operating margins in Q2FY22.

• Elgi Equipments: This air compressor maker’s stock recently touched a 10-year high mark as its net profits rose 55% YoY to Rs 52 crore in Q2FY22. This company is the second-largest player in the Indian air compressor market with a 22% market share. Analysts believe its expansion plans in the international market will steer long-term growth. Revenues grew 35.8% YoY to Rs 652 crore in Q2FY22, and brokerages expect revenues to grow up to 19% in FY22-FY23. Although some Covid-related disruptions were observed in Australia and South-East Asian markets, the company clocked good revenues across other markets. The company’s automotive business bounced back to pre-Covid levels with revenues rising by 45% YoY, showing incremental growth for this segment. The management is positive to pull off the same performance in Q3FY22 as well.

• Bharti Airtel: Telecom major Bharti Airtel’s stock recently scaled a 10-year high of Rs 779.70 on BSE after the firm hiked tariffs by 20%-25% for its prepaid and data top-up plans effective November 26. The prepaid plans segment contributes 65% to its overall sales. This move coupled with the company’s robust operational performance in Q2FY22 led to its credit rating being upgraded by Moody’s to ‘Positive ’from ‘Stable’. The company’s topline rose 13% YoY to Rs 28,326 crore and posted a profit of Rs 1,134 crore in Q2FY22. Its customer base now stands at an impressive figure of 48 crore. The rating agency feels the change in outlook to positive, if sustained, could support an upgrade to investment grade within the next 12-18 months. Brokerage houses such as Motilal Oswal and ICICI Securities raised their target prices on the stock with an upside of 24% and 16% respectively.