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Pakistan’s Karachi Stock Exchange was attacked by four gunmen on Monday morning killing at least 10 people. The attack on Pakistan’s stock exchange building sent the Karachi Stock Exchange 100 (KSE 100) index down 220 points as investors heard the news of the attack. However, a few hours after the attack was thwarted the KSE 100 staged a sharp recovery and was seen surging 398 points from the day’s low. The KSE 100 surged to 34,117 points. Pakistan’s security officials, according to media reports, gunned down all 4 assailants before they could enter the main compound of the PSX building.

Meanwhile, the KSE 30 index was also seen trading with gains just hours after the attack. According to news reports, the exchange compound has two buildings, which the gunmen could not enter. “The militants stormed the Railway Ground parking area and opened fire outside the PSX ground. They made their way to the main gate of the building and stormed it after trading fire with the security guards,” PTI reported quoting Abid Ali Habib, Director Pakistan Stock Exchange.

Responsibility of the attack was claimed by a wing of the Balochistan Liberation Army, according to reports. Four security guards and a police sub-inspector were killed as they foiled attempts to enter the Pakistan Stock Exchange (PSX) compound on Karachi’s I.I. Chundrigar Road, also known as Pakistan’s Wall Street

The KSE 100 opened for trading on Monday morning at 33,939 points and soon surged closer to the 34,000 mark. However, the attack by 4 gunmen sent Pakistan’s stock markets tumbling with the KSE 100 index diving close to 300 points. Since then the index has steadily continued to climb upwards, sitting comfortably at 34,075 points. The KSE 100 index had tanked from over 40,000 points to below 30,000 points earlier this year as the coronavirus pandemic spread across the globe.

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Ashok Leyland stock price plummeted 4.2% from the day’s high on Friday, after the Hinduja Group flagship firm reported a loss of Rs 57 crore in the January-March quarter, against a profit of Rs 653 crore in the same period last year. Income dropped massively for the company as it only managed to generate income of Rs 3,872 crore in the said quarter against Rs 8,855 in the same period last year. Ashok Leyland shares were trading at a price of Rs 52.3 per share during the day on Friday, a fall of 4.2% from the opening market price of Rs 54.6 per share.

The automobile major only managed to sell 25,504 units between January and March. The sales figure for the same period a year ago was recorded at 59,521 units. EBITDA margins declined by close to 630 basis points on-year basis to 4.8% due to higher staff cost and adverse operating leverage. EBITDA declined 81% from the previous year. “This clubbed with higher depreciation/interest cost resulted in recurring loss of Rs 11.8 crore,” said brokerage and research firm Motilal Oswal. The stock trades at FY22E 9.7x EV/EBIDTA and 1.9x P/BV, the brokerage firm said.

“Ashok Leyland reported highly subdued March quarter results due to negative operating leverage on account of significant decline of over 60% on-year in its M&HCV volumes during the quarter. We expect tough times for the CV industry over the next 2 quarters, while this industry would bounce back strongly in FY22 with more than 100% On-year jump in volumes,” said Mitul Shah, VP Research, Reliance Securities

The management commentary, post the March quarter results, reiterated the focus on cost reduction programmes. Ashok Leymand’s management said the company is focussing on preserving cash, in which its prior efforts have helped, and that the company is conserving resources for future growth initiatives. Shares of Ashok Leyland have surged over 54% from their March lows.

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South-based lender Federal Bank will be paying over Rs 80 crore to buy additional four per cent stake in its life insurance joint venture IDBI Federal Life Insurance, a top official has said.

The stake buy from the state-run IDBI Bank will take Federal Bank’s stake in the 12-year-old company to 30 per cent, the maximum permissible level for a lender under the regulations, its managing director and chief executive Shyam Srinivasan told PTI.

Without giving targeted timelines, he said IDBI Bank, which holds 48 per cent stake in the venture, will be selling 27 per cent stake in the venture to get its holding down to 21 per cent.

Federal Bank will be purchasing 4 per cent, while their Dutch partner Ageas Insurance International NV will be buying 23 per cent to take its ownership to 49 per cent, the maximum permissible for a foreign partner in a life insurance venture.

“The valuations have been decided between partners by appointing third parties. IDBI Bank will reduce either to 25 or 21 per cent depending on whether we buy or not,” he said and added that “we will take our stake to the maximum permissible 30 per cent and it will take about Rs 80-90 crore for the 4 per cent stake.”

At the lower-end of the valuation hinted by Srinivasan, the total valuation of the insurer will come at about Rs 2,000 crore. Srinivasan said it is a good investment for the bank which can reap in benefits later but declined to answer whether they are looking at an eventual listing of the venture.

The company has a good presence in the market and such a deal will be beneficial for all the stakeholders, he said.

It can be noted that the transactions have been triggered primarily by life insurance behemoth LIC buying a majority stake in IDBI Bank last year, due to which the lender is reducing its 48 per cent stake in the venture.

Srinivasan said the bank is presently in a capital conservation mode wherein it is looking at ways of conserving money, but stressed that increasing the stake is a good bet from a future perspective and also added that the amount to be invested at over Rs 80 crore is “considerably low”.

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From bankruptcy to becoming a stock which has given investors 822% returns in the past few months, the story of Alok Industries has one name associated with it which has changed the fortunes of the firm on the stock exchanges. The name is Mukesh Ambani. Alok Industries, once a bankrupt textile manufacturer based out of Mumbai, was taken over by Mukesh Ambani’s Reliance Industries along with JM Financial Asset Reconstruction company earlier this year. Post restructuring, Alok Industries stock was listed on the bourses on February 27, at a price of Rs 14. The scrip now trades at Rs 36.15, for the first time since the 2008 global financial crisis.

Shares of Alok Industries, after listing on the bourses post-restructuring, were first caught in a severe fall that equity markets across the globe witnessed in March. Alok Industries’ shares tanked to as low as Rs 3.92 per share by the end of March. However, since then the stock has staged a smart recovery, going higher and higher with each passing day. Mukesh Ambani’s Reliance Industries along with JM Financial Reconstruction company won the bid for Alok Industries for Rs 5,050 crore, of which Rs 4,550 crore were paid by Reliance Industries. The Ahmedabad bench of the National Company Law Tribunal had in 2019 approved the joint bid.

At the end of March 2020, Reliance Industries held over 83.33 crore shares in the textile manufacturer. RIL has also infused Rs 500 crore in equity into the company since then. In the October-December quarter, Alok Industries posted a consolidated net loss of Rs 194.49 crore which was significantly less than the Rs 1,307 crore loss it posted in the same period a year earlier. Total income of the company also increased to Rs 877 crore from Rs 714 crore, on-year basis. Alok Industries owed lenders Rs 30,000 crore before heading into insolvency proceedings.

Recently, Alok Industries has been asked by Reliance Industries to manufacture PPE kits as the country fights the novel coronavirus pandemic, according to reports. Alok Industries will manufacture more than 1 lakh PPE kits per day at a cost of Rs 650 per unit, which will be at one-third the cost of PPE kits imported from countries like China.

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India Cements share price surged 10.5% on Wednesday morning amidst media reports of ace investors Radhakishan Damani considering a takeover of the south-India based cement manufacturer. India Cements shares opened at Rs 134 per share only to surge higher to Rs 139.30 apiece, a jump of 10.5% from its previous close of Rs 126. Radhakishan Damani has informally approached India Cement’s controlling shareholder N. Srinivasan, for exploring the possibility of a takeover, Bloomberg News reported. As per shareholding pattern publicly available on the stock exchanges, Radhakishan Damani along with his brother Gopikishan Damani holds a 19.89% stake in the firm at the end of March 2020.

Shares of India Cements have surged repeatedly whenever Radhakishan Damani has upped his stake in the company. The Avenue Supermarts promoter held just 4.69% stake in India Cements at the end of the December quarter. Reports claimed that Radhakishan Damani is not looking for a hostile takeover of the Chennai based company. Cement sector has been adversely affected by the coronavirus pandemic and the resultant lockdown but price hikes have helped the cement manufacturers improve realisations. Motilal Oswal in a recent research note said that their channel checks showed a price hike of Rs 40-80 by south India based manufacturers.

Analysts are expecting some recovery for the cement sector, primarily driven by rural India and some pent-up demand. At the present juncture the shortage of labour in urban India has hit the demand from cities. “As per our channel checks, overall sales declined ~10-15% in north/central/east regions, while it fell 20-30% in west and south regions. Faster traction in rural/semi-urban cement demand (before monsoon hits), came to the rescue for the industry while labour/liquidity shortage have led to sharp fall in non-trade sales,” said HDFC Securities in a research report.

India Cements stock price has surged 80% year-to-date and is among the few stocks that beat the March mayhem that equity markets witnessed, sending benchmark indices to their multi-year lows. Radhakishan Damani’s retail hypermarket outlet Avenue Supermarts has also successfully turned positive year to date after a sharp 29% fall between February and March. Avenue Supermarts shares have jumped 31% since their march lows.

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