Trump's latest tariff threat, Torrent Pharma to raise Rs 12,500 cr, & more - Groww Digest

Monday, 5 January 2025

Groww Digest

Jan 05, 2026

Markets opened very close to Friday’s closing point.

Realty stocks and consumer durables stocks rose the most today. IT stocks and oil and gas stocks fell the most.

Global markets: Most US markets and most Asian markets rose. Most European markets rose (as of 6 pm IST).

News

The US President Trump threatened to raise tariffs on Indian goods again if India continues to buy Russian oil.
India expressed ‘deep concerns’ over the recent developments in Venezuela and called for a peaceful dialogue. The US carried out a military operation that led to the capture of Venezuelan President Maduro.

Stocks Updates

ONGC: formed a 50:50 joint venture with Japan’s Mitsui O.S.K. Lines Ltd (MOL) to set up 2 IFSC entities that will own and operate ethane carriers to transport ethane from the US for the company subsidiary, ONGC Petro additions (OPaL).
Torrent Pharma: board approved raising up to Rs 12,500 crore through non-convertible debentures via private placement.
Waaree Energies: company subsidiary, Waaree Energy Storage Solutions, raised around Rs 1,003 crore to fund a 20 GWh lithium-ion cell and battery pack manufacturing facility in India.
Samvardhana Motherson: a company subsidiary secured government incentives under the Electronics Components Manufacturing Scheme, committing Rs 1,900 crore investment in Tamil Nadu.
HPCL: commissioned a 3.55 MMTPA LC-Max Residue Upgradation Unit at Visakh Refinery at Vizag, Andhra Pradesh. The unit converts heavy refinery residue into high-value fuels like diesel.

Word of the Day

Sharpe Ratio

It measures the risk-adjusted performance of an investment

It tells you whether the returns you earned were worth the volatility you experienced.

This is determined by comparing the performance of an investment to that of a low risk, low volatility investment.

A higher sharpe ratio means better risk-adjusted returns. A lower sharpe ratio means the returns may not be sufficient for the risk taken.

Example: if two funds deliver similar returns, the one with the higher sharpe ratio is considered better because it achieved those returns with less risk/volatility.

6 Day Course

Theme: over-valued stocks
Day 1: Monday

This question is extremely common — how to know if a stock is overvalued?

This week, let’s dive into the topic.

Most commonly, the answer is PE ratio.

PE ratio = Price to Earnings ratio.

It compares the price of one share to the earnings-per-share of the company. It can be a good starting point.

So, if a company’s share price is very high in comparison to the amount of money it earns, we can consider it overvalued.

Example: if a company’s share price is Rs 200 and its earnings-per-share is Rs 10, the PE ratio = 20.

But you might have noticed, some of the fastest growing companies have very low profits or even losses in the fast-growth years.

Investing in these companies can yield high returns. But if we go purely based on the PE ratio, they will seem extremely overvalued. We might never be able to invest in these companies.

This is where the PE ratio stops working.