Media reports earlier today said 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 a shot in the arm of the company and a very important revenue source in the short term.
For investors, the unexpected news was a positive surprise given complaints in the past over 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.
No surprise then that shares of the company rose nearly 2 per cent and along with RIL helped the benchmark indices end in the green.
RIL’s gasification news triggers short squeeze
It seems reports that the Adani family may have become the richest in Asia at the expense of the Ambanis did not sit down well with the latter’s investors.
Shares of the company rallied over 6 per cent in one of the biggest moves for the stock this year aided by some hefty short-covering by traders. RIL’s stock was in a slump in recent days following the announcement that the deal to sell stake in the energy business to Saudi Aramco had fallen through.
However, the actual trigger for the short covering was not the loyalty of investors but Morgan Stanley’s view that the demerger of the gasification unit by RIL could actually 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 troubles RIL has faced in making it profitable, the renewed interest in hydrogen as an energy source could mean that the demerger has come at the right time.
Latent View keeps churning out gains
The newly-listed company seems an unstoppable force in the market right now. While Paytm’s IPO debacle has left many investors shell-shocked, Latent View’s investors are laughing their way to the bank.
The stock, which listed with close to 250 per cent gains on its listing day, has continued to rally as investors who lost out on the allotment for the most subscribed IPO in history continue to buy the shares. Even after tripling its IPO investors’ money on listing day, Latent View has given more than 30 per cent gains so far.
The company’s strong growth outlook as well as plans to use new funds for acquisition to expand its geographical presence is music to the ears of growth-obsessed Indian investors.