Indian Share Markets Open Flat; Cipla & ONGC Top Gainers

Here's why...

As can be seen from the chart above, the rebound in the smallcap index at 157% is way below past rebounds which have ranged from 210% to 293%.

Here's what Richa wrote in a recent edition of Profit Hunter...

  • There's consolidation happening in the smallcap space. The survivors and resilient players do not just see fundamental upside but are also likely to get rerated.

    But there is more to stock markets than small caps.

    And it will be good to see how different stock classes are stacked against each other.

Richa believes if you focus on the quality of business, margin of safety in valuations, and an optimum asset allocation, you are likely to create huge wealth for yourself.

In the latest developments from the IPO space, Shyam Metalics and Energy is all set to kick off its initial public offering (IPO) next week on 14 June.

Currently, Shyam Metalics is commanding a premium of Rs 100-130 per share in the grey market ahead of its Rs 9.1 bn IPO.

The issue has been downsized from Rs 11.1 bn earlier, as the promoters decided to cut the offer for sale (OFS) portion to Rs 2.5 bn from Rs 4.5 bn earlier.

The price band for the issue has been fixed in the Rs 303-306 range.

The company has proposed to use the net proceeds from the fresh issue to repay or prepay up to Rs 4.7 bn of its debt and those of its subsidiary, Shyam SEL, and Power, and for other general corporate purposes.

Tata Steel Long Products and Tata Metaliks, among others, will be the company's close peers.

Shyam Metalics is a producer of intermediate and long steel products, such as iron pellets, sponge iron, steel billets, TMT, structural products, wire rods, and ferroalloys.

It also focuses on high-margin products such as customized billets and specialized ferroalloys for special steel applications.

Unlike flat steel products, whose market is dominated by big players, long steel has a fair share of smaller companies. Shyam Metaliks is among the largest producers of ferroalloys in terms of installed capacity in India, as of February end.

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Disclosure: Equitymaster Agora Research Private Limited (Research Analyst) bearing Registration No. INH000000537 (hereinafter referred as 'Equitymaster') is an independent equity research ...

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