The Baseline    
03 Dec 2021
Five Interesting Stocks Today
  • Dish TV India: This DTH player’s stock hit its upper circuit in trade today after a news report said Bharti Airtel was looking to buy a majority stake in the company at a 16% premium. In a clarification to the exchanges, the company denied these reports. The Supreme Court on Tuesday overturned a High Court order freezing Yes Bank’s 25.6% stake in the DTH company which allowed the private bank to participate in the AGM later in the day. It will be interesting to see if the reported interest in Dish TV actually pans out.

  • Gujarat Fluorochemicals: This specialty chemicals maker is on fire. It touched a 52-week high of Rs 2,387.80 on Thursday after ICICI Securities initiated a ‘Buy’ rating with a target price upside of 50%. The brokerage sees the company poised to benefit from its presence in manufacturing fluorochemicals polymers. These products are increasingly being used to make lithium-ion batteries, solar panels and green hydrogen. GFL is in the process of expanding its production capacity of fluoropolymers. The company is also expanding into other fluorine derivatives used for the same use cases. It earmarked Rs 2,500 crore to invest in its capacity expansion. It will be interesting to see how this pans out.

  • Cadila Healthcare: This pharmaceutical company is interestingly poised. Its Q2FY22 net profit rose over 6.5 times to over Rs 3,000 crore due to a near Rs 2,500 crore exceptional gain of its animal healthcare business. The company’s stock took off in April 2021 and touched a life high of Rs 673.70 around the middle of June 2021. But the stock has since tapered off to Rs 454.20 as of Thursday end of trade. Now, the company’s under production Covid-19 vaccine ZyCoV-D will be used in as many as seven states. Although the vaccine was approved for use in for those aged under 12 years, it will be initially used to inoculate only adults in states with low vaccinations. The company will provide the government 1 crore doses. The company’s US business is facing some slowdown, and will take at least a year to stabilise once its foray into complex injectables picks up.

  • Hero MotoCorp: This two-wheeler maker’s stock was the only one that hit a 52-week low on Thursday before bouncing back up. The company’s weak November 2021 wholesales fell 41% to 3,49,393 units as delayed monsoon withdrawal impacted its harvesting in many parts of the country, which led to muted post festival demand. This fall in wholesales led the two-wheeler maker to surrender the title of the largest two-wheeler seller in India to Bajaj Auto based on November’s wholesales data.

  • BSE: This exchange’s stock is flying. It’s one of the most overbought stocks among the Nifty 500 companies according to technical indicators like RSI and MFI. The stock touched a 52-week high today in trade with nearly 2.75 times its weekly average volumes being traded on Thursday.