Stocks to Monitor: Asian Paints, JSW Energy, Ceigall India, Lupin, and 6 Others

Stocks to Monitor: Asian Paints, JSW Energy, Ceigall India, Lupin, and 6 Others

In a significant development, the Competition Commission of India (CCI) has ordered a formal investigation into Asian Paints for potential breaches of competition laws. The investigation was initiated following a complaint by the Aditya Birla Group's paints division, Birla Opus Paints [1].

The CCI's initial review suggests that Asian Paints may have imposed unfair conditions on dealers, offered incentives for exclusivity, increased sales targets for dealers handling Birla products, and coerced landlords and transporters not to deal with Birla [1][4]. Asian Paints holds about a 52% market share, facing rising competition from Birla Opus Paints, which grew rapidly since its launch in February 2024 to capture nearly 7% market share by March 2025 [1].

Under the Competition Act, 2002, Section 4 prohibits abuse of dominant position, and the CCI’s order cites several clauses under this provision as potentially contravened by Asian Paints [4]. The CCI has directed its Director General to conduct a detailed investigation and submit a report within 90 days [4][5]. Asian Paints has responded that it is reviewing the order and will take appropriate legal steps while cooperating fully with the investigation [5].

Meanwhile, in the business world, V-Mart Retail reported a 12.6% year-on-year increase in total revenue from operations, reaching Rs 885 crore for Q1 FY25. However, the NSE Nifty 50 and BSE Sensex closed Tuesday's session lower, with the Nifty 50 closing 25 points lower at 25,542 and the BSE Sensex closing 91 points lower at 83,697 [6].

Elsewhere, Lupin has received approval from the United States Food and Drug Administration (US FDA) for its abbreviated new drug application (ANDA) for loteprednol etabonate ophthalmic gel, 0.38%. This marks another milestone in Lupin's continuous efforts to expand its portfolio in the US market [2].

In defence and technology sectors, Paras Defence and Space Technologies has received a letter of intent for an order worth Rs 22.21 crore from the French defence company Cerbair. The order is for 30 units of CHIMERA 200, an anti-drone technology [3].

In a separate development, Ceigall India's subsidiary, Ceigall Northern Ayodhya Bypass Pvt. Ltd., has secured a Rs 1,199.30 crore road project from the National Highways Authority of India (NHAI) for the construction of a 4/6 lane northern Ayodhya bypass with a total length of 35.40 km in Uttar Pradesh [7].

In other corporate news, Megasoft's board has approved the proposed sale of the company's entire 36.52% stake in Extrovis AG, Switzerland, for a total consideration of $15 million (approximately Rs 128.4 crore) [8].

Trident, on the other hand, is facing troubles as it has received a show cause notice from the Central Goods and Services Tax (CGST) Commissionerate in Ludhiana for alleged tax dues of Rs 51.87 crore, including interest and penalty [9]. The notice pertains to discrepancies in input tax credit (ITC) reconciliation and suppression of outward tax liability based on differences between e-way bills and GST returns for the financial years 2018-19 to 2020-21.

Lastly, Nazara Technologies' subsidiary Nodwin Gaming has completed the acquisition of a 92.3% stake in AFK Gaming Pvt Ltd [10].

References: [1] https://www.moneycontrol.com/news/business/companies/asian-paints-under-antitrust-probe-for-alleged-abuse-of-dominant-position-4358161.html [2] https://www.moneycontrol.com/news/business/pharma/lupin-gets-us-fda-approval-for-abbreviated-new-drug-application-and-4357651.html [3] https://www.moneycontrol.com/news/business/defence/paras-defence-space-technologies-gets-letter-of-intent-for-rs-22-21-crore-order-4357951.html [4] https://www.livemint.com/companies/news/asian-paints-faces-antitrust-probe-over-alleged-abuse-of-dominant-position-11655223716337.html [5] https://www.moneycontrol.com/news/business/companies/asian-paints-says-reviewing-cci-order-will-take-appropriate-legal-steps-4358167.html [6] https://www.moneycontrol.com/news/business/stocks/nifty-50-ends-lower-as-asian-paints-stocks-drop-4357891.html [7] https://www.moneycontrol.com/news/business/ceigall-wins-rs-1199-crore-road-project-from-nhai-4357881.html [8] https://www.moneycontrol.com/news/business/stocks/megasoft-share-up-as-board-approves-proposed-sale-of-stake-in-extrovis-ag-4357871.html [9] https://www.moneycontrol.com/news/business/companies/trident-gets-show-cause-notice-from-ludhiana-cgst-commissionerate-for-alleged-tax-dues-4357851.html [10] https://www.moneycontrol.com/news/business/stocks/nazara-subsidiary-nodwin-gaming-acquires-stake-in-afk-gaming-4357861.html

1. Amidst the ongoing investigation into Asian Paints, traders should be aware of potential fluctuations in the stock-market, given the potential implications of the case under the Competition Act, 2002.
2. As the CCI conducts a detailed investigation into Asian Paints for potential breaches of competition laws, investors may want to reconsider their investment in the company's stocks.
3. Meanwhile, in the DEFI sector, Lupin received approval from the US FDA for an ANDA, marking another strategic move in expanding its portfolio in the US market, providing opportunities for portfolio diversification.
4. In the finance world, it's important to note that Trident is facing troubles with a show-cause notice from the CGST Commissionerate for alleged tax dues, highlighting the importance of financial compliance in all investments.
5. Elsewhere, Ceigall India's subsidiary secured a significant road project from the NHAI, offering potential investment opportunities in the infrastructure sector.

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