Media reports said today that the FMCG company has started clinical trials of a nasal spray for the prevention of Covid-19. If the nasal spray proves to be effective, it will add an injection to the company’s arm and a very significant source of income in the short term.
For investors, the unexpected news was a positive surprise given past complaints about the company’s innovation work. It also showed the management’s willingness to find new growth levers and, in this case, a very strong growth lever.
It’s no wonder then that the company’s shares rose nearly 2 percent and, together with RIL, helped the benchmark indices end in the green.
RIL gasification news triggers brief squeeze
It appears that reports that the Adani family may have become the richest in Asia at the expense of the Ambani did not sit well with the latter’s investors.
The company’s shares rallied more than 6 percent in one of the largest stock movements this year, aided by strong short coverage by traders. RIL’s shares fell in recent days following the announcement that the deal to sell the stake in the energy business to Saudi Aramco had failed.
However, the real trigger for the short hedging was not investor loyalty, but rather Morgan Stanley’s view that RIL’s spin-off of the gasification unit could be a trigger for bigger things to come.
The brokerage firm said that while investors did not see much value in the gasification project, given the problems RIL has faced in making it profitable, renewed interest in hydrogen as a power source could mean that the spin-off has come in the right moment.
Latent sight continues to pay off
The newly listed company seems like an unstoppable force in the market right now. While the Paytm IPO debacle has left many investors shocked, Latent View investors are laughing at the bank.
The stock, which traded with gains close to 250 percent on its trading day, has continued to rally as investors who lost their allocation for the most-subscribed initial public offering in history continue to buy the shares. Even after tripling the money of its IPO investors on the day of listing, Latent View has yielded more than 30 percent profit so far.
The company’s strong growth outlook, as well as plans to use new acquisition funds to expand its geographic footprint, are music to the ears of growth-obsessed Indian investors.