The sell-off came after media reports showed that the Madras High Court has issued a notice to the company over remediation of contaminated sites within its copper smelter at Tuticorin. The return of the old issue haunted investors as they feared for the worst.
The plant has been a major controversy for the company and has resulted in income loss as it was one of the biggest copper smelters in the country. In April, the Tamil Nadu government had allowed the company to reopen the plant for four months to produce medical-grade oxygen, which was in short supply during the second wave.
Yet, that was not the only reason for the pummeling of the stock. The other reason came from its subsidiary . The zinc manufacturer surprisingly deferred its board meeting, which was to be held today for approval of an interim dividend. Vedanta generates a substantial dividend income thanks to its 64.92 per cent stake in Hindustan Zinc.
Market buzz suggested that one reason for the deferment of the board meeting could be that Hindustan Zinc may be mulling some form of corporate action. Corporate actions at Vedanta companies tend to get investors anxious more often than not.
Nelco soars in partnership
The excitement among investors is reaching stratospheric heights as they are anticipating the launch of the fast satellite broadband services that the company plans to bring to India in partnership with Canadian firm Telesat.
Analysts suggested that while the number of satellites that Telesat has in the air is much lower than those of OneWeb and SpaceX, the internals of Telesat’s satellites are much stronger. For example, Telesat’s satellite can offer an average data rate per satellite of 22.7 Gigabits per second (Gbps) as compared to 5.4 Gbps offered by SpaceX satellites.
Similarly, Telesat satellites rate better on efficiency and number of customers per satellite than SpaceX and OneWeb. This, analysts believe, could provide it competitive advantage as and when the services are launched in India.
Benefiting from Ola’s e-scooter
Shares of
soared 20 per cent today after the company announced that it will be minting a lot of money from the launch of Ola’s e-Scooter. The automotive industry is excited by the launch of the electric scooter by Ola given its promise of high mileage on single charge and top speed of 115 kilometer per hour.
Further, analysts at Nomura India pointed out that after accounting for subsidies given by the Center and state governments, the on-road cost of the scooter will be close to that of Honda 6G petrol, making it one of most advanced and affordable e-scooter on the market.
All that is great news for FIEM Industries as the company is the sole supplier of head lamps, tail lamps, indicators, rear fender and mirrors to Ola Electric. If Ola’s experiment with e-scooter succeeds, it could help boost FIEM’s own earnings profile unlike anything else in the past.
