Grow Mudra's Inside Edge: Mugul’s Capital play, action hots up in Dr Reddy’s, Voltas bulls cool it, Indigo maintains altitude- Grow Mudra

Grow Mudra's Inside Edge: Mugul’s Capital play, action hots up in Dr Reddy’s, Voltas bulls cool it, Indigo maintains altitude

14 May , 2024 By : Debdeep Gupta

Booster shot

An interesting tug of war playing out in Dr Reddy’s following the fourth quarter numbers. Massive volumes were seen in the ADRs on Friday, and on Monday too ADR volumes were higher than usual. Dr Reddy’s has been among the laggards in the pharma pack, and the near-term outlook remains cautious given continued price erosion in the US generic space and increased R&D spending. Price action seems to indicate that some local players are trying to boost the price, but the premium to ADR is turning out to be a problem. If the premium to ADRs widens beyond a point, it makes sense for foreign funds to sell the stock in India and buy the ADRs.

Chill pill

Disappointment over the fourth quarter numbers appears to have subsided for now. The PMS fund affiliated with the Pearl brokerage is said to have trimmed its positions in the stock, having made a tidy profit over the last few months. For a rerating to happen from these levels, the company will need to come out with a strong margin performance in the June quarter.

Capital gains

AB Capital shares climbed after a strong fourth-quarter performance. The midcap Mugul is among the big bulls in the stock and is heard to have added to his positions last week.

Flying high

Interglobe Aviation shares have managed to maintain altitude even though some of the early bird investors have been booking profits. With the aviation industry in general grappling with staff issues, it is Air India and Vistara which have been making headlines of late. And that seems to be persuading some of the Indigo investors to remain seated. Meanwhile, the Calculator Fund is said to have trimmed some of its positions in the stock last week.