Phenol makers seek extension of anti-dumping duty
- Shares of major phenol makers such as Deepak Nitrite (+6.0%) and Hindustan Organics (+19.8%) were upbeat on the hopes that the government will continue the anti-dumping duty on imports of phenol.
- As on FY20, Deepak Nitrite and HOCL derive nearly 50% and 65% revenues, respectively, from phenol and related products.
Global sugar prices on the rise
- Raw sugar prices in international markets have risen for eight straight months and have gained nearly 50% during this period. The rise is being fueled by higher imports by China and Indonesia, while a drought in Brazil could hurt supplies.
- Higher global sugar prices augur well for Indian sugar makers who have recently received a nod for a sugar export subsidy from the government. Meanwhile, shares of major sugar companies showed mixed reactions today. EID Parry (+0.1%), Bannari Amman (+0.3%) and Triveni Engineering (+0.8%) were up, while Shree Renuka (-1.6%) was down.
Praj Industries upbeat on new order
- The biotechnology solutions company was up 3.8% today after it received an order worth ₹227 crore from Indian Oil Corporation for a zero-liquid discharge system.
- Praj offers bio-refinery solutions for multiple feedstocks. Recently, in a bid to increase ethanol production, the government has extended a scheme to offer loans at lower interest rates to set up non-sugarcane-based distilleries. Meanwhile, the stock has gained almost 33% in December.
NCC wins multiple orders
- The infrastructure player has bagged as many as 15 new orders totaling ₹8,980 crore in December 2020. The company has received these orders from central and state government agencies.
- The company has not mentioned the completion dates of the contracts. However, to put the size of the orders in context, the orders are worth more than the company’s FY20 consolidated revenues of around ₹8,901 crore. The stock was up 5.1% today and has gained close to 32% in December.
Maruti’s December volumes surge
- The auto industry leader sold 20% more vehicles in December 2020 versus the same period last year. The compact car (WagonR, Dzire, etc) segment grew by 18%, whereas vans (Omni, Eeco) and light commercial vehicles (super carry) grew 47% and 260%, respectively.
- The street would be interested in two things: Q3 volume growth, which is around 13% YoY, and whether vans and LCVs have better margins as compared to compact cars. Meanwhile, shares of Maruti were up 0.4% today.