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Sharing insights on discount broking firm Zerodha’s success and growing client base, co-founder Nithin Kamath took to social media platform ‘X’, formerly Twitter, to announce that Zerodha has 16 million clients with a combined asset under management worth Rs 6 trillion. 

In a post on ‘X’, Kamath said “Over 1.6 crore Indians trade and invest with us. Almost 30 per cent of these investors came to us through referrals by other Zerodha customers. All Zerodha investors today trust us with 6 lakh crores of their assets.” 

The milestone, Kamath added, was achieved “without advertising”, and Zerodha might be the only business-to-customers (B2C) company to have achieved this feat, he boasted.

“In hindsight, not advertising has helped us stay true to our philosophy of not pushing people to trade, no spam, etc,” Kamath said. 

The Zerodha chief executive officer (CEO) further elaborated that India is a very tough market to earn in, and even if they had advertised, they would have given up a lot of our profits to Google, Facebook/Meta, etc.

Founded in 2010, Zerodha aimed at breaking all barriers in the way India used to trade. Its name ‘Zerodha’ is a combination of Zero and ‘Rodha’, the Sanskrit word for barrier. 

According to its website, over 10 million clients place millions of orders every day through their investment platforms, contributing over 15 per cent of all Indian retail trading volumes. 

In earlier interviews with media channels, Kamath was seen comparing advertising with addiction. 

“Advertising is like being on cocaine. Once you start, you can’t stop,” he was quoted as saying. 

Meanwhile, on January 14, Kamath informed his followers on ‘X’ that Zerodha Fund House crossed the milestone of having assets under management (AUM) worth Rs 4,000 crore as of January 2025. The feat was achieved within its first year as India’s direct-only asset management company (AMC).

“The good thing about being passive-only is that it aligns the incentives for both the customers and us. For the customers, it means access to good, low-cost products,” he said.

More than half of the investor base comes from smaller towns and cities, he said. 

Launched in 2023, Zerodha Fund House is a joint venture between Zerodha and Smallcase with seven schemes spanning debt, equity, and gold ETFs.

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Sebi is looking at introducing a system where an investor can sell shares as soon as they are allotted in an Initial Public Offering (IPO) to curb grey market activity, chairperson Madhabi Puri Buch said on Tuesday.

The chief of the capital markets regulator also announced that the top two proxy advisory firms are on the verge of launching a portal which will be a repository of related party transactions and will be useful in judging the governance standards in a company for any stakeholder.

It can be noted that many IPOs in the recent past have seen very high subscriptions, and many of the issuances have also made huge listing-day gains which result in the grey market activity of passing on allotted shares.

Buch, an i-banker turned markets regulator, reminisced that during her banking days, this grey market activity used to be called “curb trading”.

“We feel that if anyway investors want to do that, why not give them that opportunity in a proper regulated way?” Buch said, addressing an Association of Investment Bankers of India (AIBI) event here.

“The idea is whatever is the grey market that is going on, pre-listing, we think that is not suitable. If you got an allotment and want to sell your right, sell it in the organised market,” she explained reporters later.

Buch said discussions are underway with two stock exchanges to put in place the “when listed” facility where shares can be traded during the three days between the allotment and listing.

“As soon as the allotment is over, the entitlement to that share gets crystallised. Then the person should have the right to sell that entitlement,” Buch said.

On the plans of proxy advisors to launch the Related Party Transactions (RPT) portal, the Sebi chief said the two major entities in the fray are on the verge of launching the facility.

It will be a valuable resource for anyone looking to judge the governance of a company and will be a step towards democratisation of information on RPTs, she said.

Buch said proxy firms play an important role in the market and attributed their success to the reliance on the subscriber pays model rather than issuer paying.

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Indian pharmaceutical (IT) major, Dr Reddy’s Laboratories, is scheduled to deliver its October-December quarterly earnings for the financial year 2024-25 (Q3FY25) on Thursday, January 23, 2025.  

According to analyst estimates compiled by Business Standard, Dr Reddy’s Labs may see its average revenue rise by 14.7 per cent year-on-year (Y-o-Y) to Rs 8,281 crore as against Rs 7,236 crore in the third quarter of FY24. Sequentially the topline may increase by 0.7 per cent compared to Rs 8,038 crore in Q3FY24. 

Moreover, the pharma major may register an average net profit of Rs 1,459 crore for the December quarter, against Rs 1,302crore in Q3FY24, which translates to an increase of 12 per cent Y-o-Y for Q3FY25. 

On a quarterly basis, profits could rise by 9.8 per cent. The company reported a profit after tax (PAT) of Rs 1,328 crore in the September quarter of FY25. 

Here’s what key brokerages anticipate for Dr Reddy’s Labs Q3 FY25 results:

Axis Securities: Analysts forecast $310 million in base business revenue and $140 million from gRevlimid sales in the US, with overall flat sequential growth in US sales driven by stable gRevlimid contributions. They emphasize the importance of management commentary on US base business trends and margins as key monitorables.

PL Capital: The brokerage highlights that weak US base business performance will be offset by Q-o-Q growth in Revlimid sales. The integration of Sanofi’s portfolio is expected to support domestic growth. Commentary on US base business performance and margin trends will be crucial to monitor. 

HDFC Securities: Analysts project a sequential decline in the US business due to lower Revlimid sales, with the base business expected to remain steady at $285–290 million. India’s revenue is anticipated to grow by 14 per cent Y-o-Y, driven by incremental contributions from the acquired Sanofi vaccine business. The NRT business, incorporated after its acquisition in September 2024, is also expected to support growth. Gross and Ebitda margins are predicted to remain stable. 

Nuvama Institutional Equities: The brokerage expects Dr Reddy’s revenue grew by 17 per cent Y-o-Y and Ebitda by 13 per cent Y-o-Y, with Ebitda margins at 27.5 per cent, supported by gRevlimid contributions. US revenue is projected at $427 million, driven by strong gRevlimid sales. India business growth is estimated at 19 per cent Y-o-Y, comprising 11 per cent organic growth and approximately Rs 900 crore from the vaccine business. Growth in the Rest of the World (RoW) segment is anticipated, aided by improvements in China, Brazil, and Russia.

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 Laxmi Dental shares made a decent debut on the stock exchanges on Monday, January 20, 2025. On the National Stock Exchange (NSE), Laxmi Dental IPO listing price was Rs 542 per share, reflecting a listing gain of 26.6 per cent or Rs 114, as against the issue price of Rs 428. 

Similarly, on the BSE, Laxmi Dental shares listed at Rs 528 apiece, commanding a premium of 23.3 per cent or Rs 100, as compared to its initial public offering (IPO) issue price. 

Laxmi Dental’s IPO listing performance was slightly below the grey market expectations. Ahead of the debut, Laxmi Dental IPO GMP (grey market premium) stood at Rs 145 or 33.88 per cent, as per sources tracking grey market activities.

With a price band of Rs 407 to Rs 428 per share, Laxmi Dental IPO opened on Monday, January 13, 2025, and concluded its subscription on Wednesday, January 15, 2025. The basis of allotment was finalised on Thursday, January 16, 2025. 

Laxmi Dental IPO was a book-built issue of Rs 698.06 crore, which combined fresh issue of 3.2 million shares, aggregating to Rs 138 crore, and an offer for sale (OFS) of 13.1 million shares, aggregating to Rs 560.06 crore. The lot size was 33 shares and the public issue was subscribed 60.02 times, according to NSE data.

The proceeds of the IPO are said to be utilised for the repayment of borrowings, investment in certain subsidiaries for the repayment of borrowings, funding the capital expenditure requirements for purchasing new machinery, investment in the subsidiary, Bizdent Devices for the capital expenditure requirements for the purchase of new machinery and for general corporate purposes. 

Link Intime India was the registrar for the IPO, while Nuvama Wealth Management, Motilal Oswal Investment Advisors, and SBI Capital Markets were the book-running lead managers. 

Laxmi Dental is an integrated dental products company. The company offers custom crowns and bridges, branded dental items like clear aligners and thermoforming sheets, aligner-related products as part of its aligner solutions, and pediatric dental products. Their product portfolio includes custom crowns and bridges, clear aligners, thermoforming sheets, pediatric dental products, and more. The company offers thermoforming sheets, biocompatible 3D printing resins, and machines for manufacturing clear aligners under the brand name Taglus.

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Last week, equity benchmark indices ended in the negative zone for the second straight week amid bouts of volatility, as bulls attempt to defend the 23,000-mark on the Nifty 50. The BSE benchmark – Sensex 30 hit a low of 76,250, and ended the week with a loss of 760 points at 76,619. The Nifty hit a low of 23,047, before signing off the week at 23,203. IT shares were a major drag on the benchmark indices post Q3 results. HCL Technologies tumbled over 10 per cent. Infosys plunged nearly 8 per cent, and Wipro shed 6 per cent. TCS and Tech Mahindra were down around 3 per cent each. Among others, Mahindra & Mahindra, Trent, Axis Bank, Hindustan Unilever, Dr.Reddy’s Labs and Apollo Hospitals declined 3 – 6 per cent. On the positive front, Hindalco rallied over 7 per cent. NTPC, HDFC Life, Coal India, Reliance Industries, Adani Ports, Maruti Suzuki, SBI Life Insurance and Bharat Electronics gained 4 – 6 per cent each. Outlook for the week – Jan 20 – Jan 24, 2025. 

BSE Sensex Current Level: 76,619 Support: 76,350; 76,200; 76,085 Resistance: 77,030; 77,155 Going ahead, this week, the recent low around 76,300 levels holds the key for the Sensex. As long as the BSE benchmark manages to sustain above it on a daily closing basis, market participants can hope for a relief rally to emerge. The weekly Fibonacci analysis suggests a likely trading range of 75,960 – 77,280 for the BSE Sensex. Interim support for the Sensex is placed at 76,350 – 76,200 – 76,085 levels; whereas resistance on the upside can be expected around 77,030 – 77,155. In case, the Sensex breaches the lower end of the trading range, it can extend the fall towards 75,760 – 75,200 levels. On the upside, sustained trade above 77,000-mark can see the BSE benchmark jump towards 78,150; above which the market may witness some short-covering.

 NSE Nifty Current Level: 23,203 Support: 23,000; 22,880 Resistance: 23,600 Technically, the bias for Nifty is expected to remain weak as long as the NSE index remains below the 20-DMA (Daily Moving Average), which stands at 23,600 levels. On the downside, the Nifty seems on course to test the 20-MMA (Monthly Moving Average) at 22,257; below which a test of 21,500 levels seems likely. Key momentum oscillators on the daily and weekly chart are still in favour of the bears. Interim support for the index can be expected around the 23,000-mark and 22,880 levels.

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