Indian Stock Market News 21st August 2024
According to financial analysts, the restaurant business is a very high-risk business. However, one such entrepreneur, originally an uneducated Gujarati immigrant to the US, turned his restaurant venture into a multi-million-dollar success story. With an education only until the 10th grade, this entrepreneur goes on to prove all the odds and conventional wisdom—like the criticism by Peter Thiel, who warns against getting into the restaurant business—wrong.
The following story of this entrepreneur, which a user named Sunil shared on X (formerly Twitter), epitomizes the wonderful journey of a man who made a fortune with a successful Gujarati restaurant based on horse sense and hard work. Where Peter Thiel had once bashed the restaurant business as slow, with customers being unpredictable, this Gujarati immigrant paid no heed to him. He focused on building a loyal customer base of about 50 regular families who value traditional Gujarati cuisine cooked daily by him.
Conveniently located next to the Swaminarayan Temple in Robbinsville, New Jersey, a steady stream of visitors from New York and Pennsylvania coming to visit the temple provided a ready clientele to the restaurant. This simple ritual of dal, chawal, roti, sabzi, and dhokla has turned this 10th-fail immigrant into a millionaire in a decade. Sunil, however, light-heartedly compares his fortune with a master’s degree to that of his friend to once again affirm that experience often is more valuable than education.
Sunil’s story, watched over 300,000 times on social media, opened the debate on whether this was a mainstream education system focusing on theory more than practical experience. His story shows that when many were overthinking their next moves, sometimes all it takes is one simple action, executed consistently, to bring success.
Hero MotoCorp, the world’s biggest manufacturer of two-wheelers, has been sliding down since the all-time high hit in June. Some factors contributing to the same are underwhelming June quarter results, increasing competition in EVs, and weak rural demand. Hero MotoCorp shares have fallen 11% from their peak of ₹5,894, making the case an attractive opportunity to buy the dip for investors.
InCred Equities has upgraded rating on Hero MotoCorp to ‘Add’ from ‘Hold’, as it believes the recent decline offers an attractive entry point for investors; increased target price from ₹4,766 to ₹5,812 per share. The brokerage believes that the recent decline will present an attractive entry point for investors, as its measures aimed at regaining market share in the two-wheeler segment show promise.
Hero MotoCorp has managed to increase its market share in the 125cc category to 20% in Q1 FY25, up from 13% in Q4 FY24, driven by the success of the Hero Xtreme 125cc model. The company has further consolidated its stranglehold on the sub-110cc segment with a commanding 90% share and is now looking at augmenting production capacity for popular models to support sales volume growth.
While competition from OLA’s electric bike offerings is a challenge, Hero MotoCorp’s strong strategy to build out its capabilities in both the traditional and electric vehicle marketplaces should set up the company well for steady growth. New models, enhancing financing options, and actions to win the rural market will drive high-teen growth in coming quarters.
The Orient Technologies IPO started off with a bang and surged to become one of the most subscribed IPOs among retail investors. The IPO got fully subscribed within an hour since it opened, on account of heavy demand from the retail category.
According to BSE data, IPO subscription status stood at 2.14 times as of 11:36 IST. The retail portion was subscribed 3.69 times, while the NII and QIB received a subscription of 1.28x and remains yet to get fully subscribed respectively.
The IPO opened on August 21 and shall close on August 23, 2024. It has fixed a price band of ₹195 to ₹206 per equity share with a face value of ₹10 each. Retail investors can bid for a maximum of 72 shares or in multiples thereof.
Orient Technologies, a Mumbai-based company, was incorporated in the year 1997 and is known for its parlance in IT services, specifically within the niche markets of cloud and data management, IT infrastructure, and IT-enabled services. This strong participation of investors essentially showcases faith in the growth prospects of the firm aligned with the fast-growing information technology sector.
Gold prices continued to inch higher on Wednesday and were fast approaching the level of ₹72,000 per 10 grams pushed by strong demand and hopes the US Federal Reserve might cut interest rates. In MCX futures, gold traded 0.28% higher at ₹71,979 per 10 grams, while silver climbed 0.21% to ₹84,912 per kg.
The price of gold internationally remained just below all-time highs, with spot gold trading at $2,517.38 an ounce, off its peak on Tuesday of $2,531.60, a record. US gold futures rose 0.2% to $2,555.20.
The rally in gold has been impressive this year, up 22%, which is mostly supported by the weakening US dollar and falling Treasury yields. Adding to these, analysts now expect the US Federal Reserve to adopt a 25 basis points rate cut in September, hence fueling the bulls for gold.
According to Jigar Trivedi, senior research analyst at Reliance Securities, in the short run, gold may not change too much from here, with ₹72,500 per 10 grams being a possible resistance point.
In what comes as a big relief for Larsen & Toubro, the Bombay High Court has quashed a ₹2,237 crore GST demand imposed on the company. The dispute had arisen from a show-cause notice issued by the Principal Commissioner of GST and Service Tax, Mumbai, pertaining to service tax paid by an erstwhile subsidiary post-demerger.
L&T had moved the Bombay High Court with a Writ Petition challenging the show-cause notice, contending that the tax on these very transactions had already been paid by the company. On August 19, the court ruled in favour of the company and quashed the GST demand.
This win has come at a time when L&T has announced its Q1 FY25 results, wherein it reported a 12% increase in net profit at ₹2,786 crore. Its revenue was up 15% at ₹55,120 crore during the same period, missing expectations by a tad.
According to S.N. Subrahmanyan, chairman and managing director of Larsen and Toubro, the diversified business portfolio and strategic financial performance have primed the firm for long-term growth, especially in the emerging sectors of semiconductors and retail finance.
Top 15 Incredibly Beautiful Women from Across the World
Krystyna Pyszkova, Representing The Czech Republic, Crowned Miss World 2024!
Source: Google
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