Week7Analysis

.docx

School

IFMR Institute for Financial Management and Research**We aren't endorsed by this school

Course

MBA 123

Subject

Economics

Date

Dec 21, 2024

Pages

Uploaded by BrigadierHawk5214

Week 7 AnalysisStock AnalysisStockBought PriceLTP (Current Price)Percentage ChangePossible Reasons for Price ChangeM&M (Mahindra & Mahindra)2,973.60₹3,070.00₹+3.24%1. Strong Demand in SUV Segment: M&M's growth in the automotive sector, particularly in SUVs and electric vehicles(EVs), has helped drive the stock price up.2. Improved Quarterly Results: Positive financial performance, driven by higher vehicle sales and expansion in the tractor segment, supported the stock’s increase.Zomato279.40₹302.45₹+8.25%1. Recovery in Food Delivery Market: Zomatosaw a resurgence in food delivery demand, particularly in urban centers, boosting its revenue and profitability.

2. Positive Investor Sentiment: Improved investor sentiment towards tech-driven food delivery businesses as post-pandemic recovery continued to drive growth in digital food services.Tata Consumer Products958.90₹975.50₹+1.73%1. Steady Demand for FMCG Products:Tata Consumer's portfolio, including tea, coffee, and packaged foods,benefited from steady demand in the FMCG sector, helping it post modest gains.2. Strategic Brand Expansions: The company’s strategic movesto expand its brands and enter new product categories, like health-focused beverages, provided a boost to its stock.Indian Hotels794.45₹593.30₹-25.32%1. Disruptions in Hospitality Sector: The hospitality

sector, particularly hotels, faced setbacks due to regional lockdowns, slow recovery in travel demand, and concerns about high operational costs, leading toa sharp decline in the stock price.2. Market Sentiment and Weak Earnings:Negative market sentiment due to weak earnings results, hotel closures, and a prolonged recovery from the COVID-19 impact likely caused the price drop.Hindustan Unilever2,492.00₹2,485.00₹-0.28%1. High Inflationary Pressure: Rising raw material costs, particularly in packaging and logistics, could have pressured margins slightly, leadingto a minor dip in stock price.2. Moderate Growth in Consumer Goods: Despite steady demand,

HUL’s growth has slowed compared to previous periods due to saturation in certain FMCG categories.Insights CategoryDetailsMarket Trend ImpactThe broader market increased during the week, with the NIFTY rising from 13,627.00(Week 6) to 13,996.80 (Week 7), reflecting overall positive sentiment driven by strong earnings and institutional buying.Sector-Specific Observations- Auto (M&M): Benefited from sustained demand and positive results.- FMCG (Tata Consumers, HUL): Growth was muted due to input cost pressures.- Hospitality (Indian Hotels): Declined sharply amid valuation concerns and discretionary spending fears.- Consumer Tech (Zomato): Gained due to strong operational metrics and investor optimism.Best PerformerZomato (+8.25%) - Outperformed due to strong demand in the food delivery segment and favorable market sentiment towards consumer tech stocks.Challenges- Sector Headwinds: Hospitality and FMCG sectors faced valuation and inflation concerns.- Profit Booking: Overvaluation in Indian Hotels led to sharp corrections.- Macro Factors: Broader concerns about discretionary spending affected certain sectors disproportionately.Learning- Diversification into multiple sectors is essential but requires deeper considerationof valuation risks.- Incorporating broader economic indicators and discretionary spending trends could refine stock selection.- Monitoring technical and fundamental data consistently could help avoid heavy losses in individual stocks.