Latest news with #MohitGulati
Mint
12-05-2025
- Business
- Mint
Stock market strategy: Buy the dips or sell the rally? What should you do amid India-Pakistan tensions?
Stock market strategy: The recent ceasefire between India and Pakistan has led to a significant uptick in the market on Monday. Nevertheless, analysts are adopting a stance of cautious optimism regarding Indian equities. They suggest that India's development into a mature economic and geopolitical force is reflected in its strong position on regional security and its capability to manage recent tensions with Pakistan. On a structural level, the macroeconomic conditions remain solid—India is currently the world's fourth-largest economy, with some of the fastest growth forecasts globally, supported by robust domestic demand and ongoing reforms. Additionally, Dr. VK Vijayakumar, Chief Investment Strategist at Geojit Investments, pointed out that the primary driver of the rally will be the sustained buying by Foreign Institutional Investors (FIIs), which has continued for sixteen consecutive days, with the exception of last Friday when the conflict intensified. Domestic economic indicators such as anticipated high GDP growth, expectations of earnings recovery in FY26, along with declining inflation and interest rates, bode well for the market's rally to resume. The Nifty 50 and the Sensex rose by almost 3% each, reaching 24,723.80 and 81,737.53, respectively, as of 11:42 IST, making strides to regain the 1.5% they dropped following India's strikes on Pakistan on Wednesday. Mohit Gulati from ITI Growth Opportunities Fund and Prashanth Tapse from Mehta Equities provide insights on stock market strategies in light of tensions between India and Pakistan. They discuss whether investors should buy the dips or sell the rally, and reveal their stance on the matter along with the reasoning behind it. Mohit Gulati, the CIO and managing partner of ITI Growth Opportunities Fund, believes that structurally, the macroeconomic backdrop remains robust-India is now the world's fourth-largest economy, with growth projections among the fastest globally, underpinned by strong domestic demand and ongoing reforms. However, global risks like trade wars and market volatility should not be underestimated. Gulati's strategy is to buy the dips in high-quality stocks. " I've been monitoring for entry points, while taking profits in high-valuation, low-growth names. Selectivity and discipline are key in this environment-focus on fundamentals, stay nimble, and avoid complacency as global uncertainties persist,' said Mohit. For long-term investors, Prashanth Tapse, Research Analyst, Senior Vice President of Research at Mehta Equities firmly believe in the "Buy the Dips" strategy—executed with a disciplined and stock-specific approach. Tapse also reasons it by saying that India's economy presents a strong structural growth story, making it one of the fastest-growing major economies globally. Long-term tailwinds such as policy reforms, infrastructure expansion, and digital transformation continue to drive this narrative. In this context, investors should focus on high-quality businesses with strong fundamentals, consistent earnings, and durable competitive advantages. The presence of huge domestic liquidity, led by persistent participation from retail investors and domestic institutions, acts as a stabilizing force during market corrections. Additionally, the recent India–Pakistan ceasefire agreement is a significant confidence booster—it reduces geopolitical risk premiums and creates a conducive environment for equity investments. On the other hand, for short-term traders, a "Sell the Rallies" strategy can be more effective, believes Tapse. He explained that particularly when markets are in overbought zones, trading near all-time highs, or when valuations outpace earnings growth. In such scenarios, traders can tactically benefit by booking profits or taking contrarian positions during euphoric rallies, especially in speculative pockets, advised Prashanth. Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
Mint
07-05-2025
- Business
- Mint
Ather Energy share price rebounds post poor listing, trades above IPO price. What should allottees do?
Ather Energy share price saw a recovery during Wednesday's trading session following a disappointing debut, although it continued to trade below the inITIal listing price. After a shaky start earlier in the day, Ather Energy share price rose by 7%. Ather Energy share price today opened at ₹ 289.90 apiece on the BSE, the stock touched an intraday high of ₹ 311.50, and an intraday low of ₹ 287.30 per share. Ather Energy shares had a modest launch on the stock exchanges on Monday. On the NSE, the shares opened at ₹ 328, reflecting a 2.18% increase from the issue price of ₹ 321. Meanwhile, on the BSE, the shares began trading at ₹ 326.05 each, which is a rise of 1.57% compared to the issue price. On its first day of trading, Ather Energy shares closed at ₹ 300 on the NSE, representing a 6.54% decrease from the IPO price of ₹ 321, and at ₹ 302.50 on the BSE, which is a 5.76% decline. Arun Kejriwal, the founder of Kejriwal Research and Investment Services, expressed that the Ather Energy IPO listing was underwhelming, particularly considering the excitement exhibited by retail investors. This reflects the general sentiment surrounding Ather Energy. Consequently, if investors possess shares from the IPO, it is recommended to establish a stop loss in the range of ₹ 293-295. Assess whether to continue holding the investment or to sell and wait for the company's results for the March quarter. Further, Mohit Gulati, the CIO and managing partner of ITI Growth Opportunities Fund explained that Ather Energy's muted listing highlights the sector's challenges and the need for patience from investors. While its premium positioning and steady revenue growth are positives, near-term volatility is expected as the company invests heavily in capacity and market expansion. Ola's dominance and market cap strength will continue to cast a shadow on Ather's valuation until Ather can decisively break out with its own growth and profitability story, added Gulati. Ather Energy IPO included a fresh issuance of equity shares worth ₹ 2,626 crore, along with an offer-for-sale (OFS) of 1.1 crore equity shares from promoters and other stakeholders. The OFS featured existing investors like National Investment and Infrastructure Fund II, Internet Fund III Pte. Ltd., IITM Incubation Cell, IITMS Rural Technology and Business Incubator, as well as promoters Tarun Sanjay Mehta and Swapnil Babanlal Jain, who will be selling their shares. Of the total funds raised through the IPO, Ather intended to use ₹ 927.2 crore to build an electric two-wheeler manufacturing plant in Maharashtra, ₹ 40 crore to repay debts, ₹ 750 crore for investments in research and development, and ₹ 300 crore for marketing initiatives. These funds are planned to be utilised during the fiscal years 2026 to 2028. Axis Capital Limited, HSBC Securities & Capital Markets Pvt Ltd, JM Financial Limited, and Nomura Financial Advisory and Securities (India) Pvt Ltd are acting as the book running lead managers for Ather Energy's IPO. Link Intime India Private Ltd is serving as the registrar for this offering. Disclaimer: The views and recommendations above are those of individual analysts, experts and broking companies, not of Mint. We advise investors to check with certified experts before making any investment decision.
Mint
30-04-2025
- Automotive
- Mint
Ather Energy IPO day 3: GMP, subscription status to review. Apply or not?
Ather Energy IPO faced challenges in attracting significant investor interest on its second bidding day, with Ather Energy IPO subscription status at 28%, as per BSE data. Retail investors were the main contributors, subscribing 1.12 times their allotted share, while non-institutional investors (NIIs) achieved a subscription level of 27%. Ather Energy IPO will close on April 30, and the listing is set for May 6. On the first day of bidding, Ather Energy IPO subscription status was 16%. Ather Energy Ltd announced on Friday that it has secured ₹ 1,340 crore from anchor investors. The public offering, valued at ₹ 2,981 crore, has a price band of ₹ 304-321 per share. This marks the first mainboard public offering for the financial year 2025-26. Ather Energy is the second electric two-wheeler company to enter the public market following Ola Electric Mobility, which launched its ₹ 6,145-crore IPO in August of the previous year. Mohit Gulati, the CIO and managing partner of ITI Growth Opportunities Fund, highlighted that both Ather Energy and Ola Electric are significant players in India's electric two-wheeler market, but they present distinctly different investment profiles. Ola Electric clearly stands out as the market leader, commanding over 35% market share. Its aggressive expansion strategy and in-house battery manufacturing provide substantial scale and cost advantages. In FY24, Ola Electric's revenues were nearly three times those of Ather Energy. However, this rapid growth comes at a cost; Ola has also recorded higher losses and a larger cash burn, highlighting its high-risk blitzscaling strategy. In contrast, Ather Energy positions itself as a premium, technology-driven brand that prioritizes product quality and innovation. While its market share is about one-third of Ola's, Ather demonstrates a more disciplined approach, with significantly lower cash burn and superior per-vehicle margins. The initial public offer of Ather Energy IPO has been subscribed 28% on the second day of subscription, as per BSE data. The initial share sale received bid for 1,50,90,162 shares against 5,33,63,160 shares on offer, according to BSE. The portion for retail investors received 1.12 times subscription while the quota for non-institutional investors has been subscribed 27% and the qualified institutional buyers (QIBs) part is yet to be booked. The employee portion has been subscribed 3.18 times. The brokerage mentioned in its report that, in spite of its growth initiatives, the company has consistently incurred losses and has a significant amount of accumulated losses. Its financial results have led to a negative Price-to-Earnings (PE) ratio, and its borrowings exceeded ₹ 1,121 crore as of December 31, 2024, which raises concerns. Nevertheless, the company possesses strong backing from its parent organisation, which remains a crucial advantage. Given its current financial situation, this seems to be a long-term investment opportunity, and thus, only well-informed investors with extra funds and a long-term outlook may choose to invest modestly. The brokerage's report pointed out that management anticipates a compound annual growth rate (CAGR) of approximately 41–44% for E2W sales across the industry in India until FY31, with Ather planning to leverage this growth by expanding its product offerings, lowering costs through localization and new battery technologies, and enhancing software monetization avenues. Although the reduction of government subsidies has posed challenges, the company has succeeded in improving its profitability metrics and lessening its reliance on subsidies. At the upper end of ₹ 321, the offering is priced at an EV/sales ratio of 8x, grounded on a projected sales figure of ₹ 15,789 Mn. The brokerage is advising a "Subscribe for listing gain" rating for this offering. Ather Energy IPO includes a fresh issue of equity shares worth ₹ 2,626 crore, in addition to an offer-for-sale (OFS) of 1.1 crore equity shares from promoters and other stakeholders. The OFS features existing investors such as National Investment and Infrastructure Fund II, Internet Fund III Pte. Ltd, IITM Incubation Cell, IITMS Rural Technology and Business Incubator, along with promoters Tarun Sanjay Mehta and Swapnil Babanlal Jain, who will be selling off some of their shares. Ather intends to use the proceeds from the IPO, with ₹ 927.2 crore designated for building an electric two-wheeler manufacturing plant in Maharashtra, ₹ 40 crore for debt repayment, ₹ 750 crore for research and development investments, and ₹ 300 crore for marketing initiatives. These resources will be utilized during the fiscal years 2026 to 2028. Axis Capital Limited, HSBC Securities & Capital Markets Pvt Ltd, JM Financial Limited, and Nomura Financial Advisory and Securities (India) Pvt Ltd are the book running lead managers for Ather Energy's IPO. Link Intime India Private Ltd serves as the registrar for this offering. Ather Energy IPO GMP today is +1. This indicates Ather Energy share price were trading at a premium of Re 1 in the grey market, according to Considering the upper end of the IPO price band and the current premium in the grey market, the estimated listing price of Ather Energy share price was indicated at ₹ 322 apiece, which is 0.31% higher than the IPO price of ₹ 321. According to the grey market trends observed over the last nine sessions, the current GMP (Re 1) indicates a downward trajectory. The minimum GMP recorded is ₹ 0.00, while the maximum GMP stands at ₹ 17, as per insights from experts. 'Grey market premium' indicates investors' readiness to pay more than the issue price. Disclaimer: The views and recommendations above are those of individual analysts, experts and broking companies, not of Mint. We advise investors to check with certified experts before making any investment decision. First Published: 30 Apr 2025, 09:04 AM IST
