Daily Brief India: Vedanta Ltd, Dixon Technologies India Ltd, NIFTY Index, Policybazaar, Ashok Leyland, Pennar Industries, Gujarat Pipavav Port, ReNew Energy Global and more

• NCLT approval removes the key overhang, enabling Vedanta’s break-up and forcing valuation discovery across aluminium, zinc/silver, power and O&G.
• Aluminium becomes the anchor, with falling costs and ~50% EBITDA share; zinc and silver provide resilient cash flows and downside protection.
• Intrinsic SOTP ₹1,020–1,050/share implies ~78–83% upside from CMP ₹572; execution-weighted 12-month TP ₹770 offers ~35% upside with downside protected even under stressed aluminium prices.

• Vedanta Ltd (VEDL IN) will split into 5 independent listed entities: Vedanta Aluminium, Vedanta Oil & Gas, Vedanta Power, Vedanta Iron & Steel/Ferrous Materials, residual Vedanta Ltd (like zinc, silver). 
• Existing shareholders will receive one share in each of the 4 demerged entities for every one share held in Vedanta Ltd (1:1 ratio).
• The Mumbai bench of NCLT approved Vedanta Ltd (VEDL IN) demerger plan on December 16 lead to streamline operations, improve management focus, and unlock shareholder value.

• Dixon Technologies India Ltd (DIXON IN) , India’s largest EMS player, benefits from PLI schemes and the China+1 strategy, driving a robust 55% revenue CAGR and scale expansion.
• The stock’s 32% correction was driven by the regulatory probe into Chinese clients and broader EMS sectoral governance concerns.
• Strong financial health with 51% ROCEsupports medium-term growth momentum, making its valuation attractive despite high short-term volatility.

• The NIFTY Index (NIFTY INDEX) is in the middle of a very mild correction, the index is now in its 3rd week down but the pullback has been very minimal.
• We think this is the ideal set up to add LONG NIFTY 50 positions: mild pullback coupled with a high probability of reversal on our quantitative TIME MODEL.  
• The proposed tactical LONG trade will be valid for this entire week, if the index stays below last week’s Close.

• It is reported that Life Insurance industry is evaluating a shift away from traditional front-loaded commissions toward a deferred commission structure.
• Moreover, IRDAI has intensified oversight of distribution expenses and management costs in the general and health insurance segments and looks to lower the EoM cap for the insurers.
• These changes if considered, could pose meaningful near-term growth and margin headwinds for PB Fintech or Policybazaar (POLICYBZ IN), which is already under pressure from the GST rate cuts.

• Ashok Leyland is strategically positioned to capitalize on a multi-year commercial vehicle (CV) upcycle in India, driven by an aging fleet, steady economic growth, and sustained infrastructure development.
• The company is aggressively diversifying its revenue streams by strengthening its light commercial vehicle (LCV) portfolio, expanding its international footprint, and growing its non-vehicle businesses, which is expected to reduce earnings cyclicality.
• A forward-looking R&D focus on future-fuel technologies, including a robust electric vehicle (EV) strategy through its subsidiary Switch Mobility and development in LNG and hydrogen, positions the company for long-term, sustainable growth in a transforming industry.

This content is AI-generated and displayed for general informational purposes only. Please verify independently before use.

• Pennar Industries is a diversified engineering company with a strong foothold in high-growth sectors like infrastructure, automotive, and railways, which are benefiting from India’s economic expansion.
• The company has demonstrated a consistent track record of revenue growth and improving profitability, driven by a strategic shift towards higher-margin, value-added products and custom-engineered solutions.
• Key risks include susceptibility to steel price volatility, which constitutes a major portion of raw material costs, and competition from larger integrated steel manufacturers in a low-margin business environment.

This content is AI-generated and displayed for general informational purposes only. Please verify independently before use.

• Strategic Location with DFC Linkage: Gujarat Pipavav Port (GPPV) is strategically located on the west coast of India, on a major international maritime trade route. Its connectivity to the Western Dedicated Freight Corridor (DFC) is a significant catalyst, enhancing its hinterland reach and offering a competitive advantage in logistics efficiency.
• Strong Financials and Shareholder Returns: The company demonstrates robust financial health with consistent revenue growth, stable margins, and an almost debt-free balance sheet. GPPV has a strong track record of returning value to shareholders, evidenced by a high dividend yield and a healthy dividend payout ratio.
• Competitive Pressures and Capacity Constraints: GPPV operates in a highly competitive environment, facing intense rivalry from larger neighboring ports like Mundra and JNPT. While it boasts high operational efficiency, its current scale and capacity are smaller than its main competitors, which could limit market share gains.

This content is AI-generated and displayed for general informational purposes only. Please verify independently before use.

• Front-end UST yields declined yesterday, with the UST curve steepening in continuation of last week’s trend. The yield on the 2Y UST fell 2 bps to 3.50%, while that of the 10Y declined 1 bp to 4.17%.
• Equities retreated for a second day, with the S&P 500 and Nasdaq down 0.2% and 0.6%, respectively.
• New York Fed President John Williams said monetary policy is well-positioned heading into 2026, as the FOMC has “adjusted interest rates down in a way that we think positions us really well to have these two competing kinds of risks be roughly in balance”.