In today’s briefing:
- Birla Opus | Short Term Gain, Long Term Pain
- Nifty Index Options Weekly (Apr 07 – 11): Volatility Spikes, Skew Steepens, Hedges Reassessed
- Steel Authority of India: Weak on Expansion
- #3 Leadership Bytes(11-Apr-25)
Birla Opus | Short Term Gain, Long Term Pain
- We interact with our dealer network representing Asian Paints (APNT IN) and Birla Opus Grasim Industries (GRASIM IN) dealers with an objective to understand the current operating environment.
- Aggression in a slow-moving market will result in short-term market share gains for players like Birla Opus.
- While Asian Paints (APNT IN) may appear to lose market share, we believe this would be transient in nature.
Nifty Index Options Weekly (Apr 07 – 11): Volatility Spikes, Skew Steepens, Hedges Reassessed
- Implied vol spiked sharply on Monday, marking one of the largest single-day moves since the pandemic.
- We discuss the move in skew and suggest a course of action for previously recommended hedges.
- The magnitude of the implied vol move is examined in the context of recent price behavior—and whether it holds.
Steel Authority of India: Weak on Expansion
- SAIL has been a consistent under-performer despite having huge iron ore reserves, multi-location steel plants and wide product spectrum and exclusive sales to Indian Railways
- Legacy plants, ageing manpower and operational inefficiencies have resulted in slower growth compared to peers and a significant loss in overall market share, high inventories and single digit RoEs
- SAIL trades at 0.8x P/B, in line with history, but weak volume visibility and elevated debt warrant a deeper discount—0.6x book better reflects risk-reward, in our view.
#3 Leadership Bytes(11-Apr-25)
- Tata Consultancy Svcs (TCS IN) , Aurionpro Solutions (AUPS IN) , Mazagon Dock Shipbuilders (MAZDOCKS IN) have shared major updates across demand outlook, sector focus, expansion plans, and strategic pivots.
- Each company is aligning efforts to navigate macro uncertainties, tap digital or sectoral growth, and optimize capital allocation.
- From TCS’s cautious outlook and margin levers to Apollo’s digital push and Indigo’s hospitality play, these moves reflect a broad spectrum of strategies among market leaders.
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