OMKARA CAPITAL – DAILY NEWSLETTER (1st June, 2026)

Headlines
• RBI MPC decision is slated for 5-June: expect rates on hold
• US-Iran negotiations — tantalizingly close, but not done
• Brent at $91 posted biggest monthly loss in six years
• Mumbai records 12,000+ property registrations in May 2026 — the best May in 14 years

Stocks in news
• Wockhardt's novel antibiotic ZAYNICH (erstwhile WCK5222) has secured USFDA approval under the Fast Track/Priority Review pathway: A Landmark Win for Indian Drug Discovery
• Textile stocks in focus: Govt exempts all customs duties on cotton imports for 5 months + USA-India trade deal meeting this week (we remain bullish on Gokex, Pearl Global)
• Cyient announced acquisition of TAO Digital Solutions (TAO). The acquired entity was founded in CY2022 and has scaled rapidly over the past three years. The acquisition would be EBIT margin dilutive initially due to amortization charge but would be EPS accretive in year 1 and 2 based on management aspirations of elevated growth. The cash consideration of US$218 mn includes US$125 mn upfront and US$93 mn earn-out payment payable over two year period upon achievement of revenue and EBITDA targets.

MARKET COMMENTARY: RBI, USA-Iran, SpaceX listing to look ahead
The weekend was full of news — an end to a long earnings season and anticipation of closure to USA-Iran war and some hopes of measures from the Indian government.

As we step into the 4th month of the USA-Iran war – market signals suggest that we are near the close but “not in a hurry” as Trump says. Iranian markets are surging, crude is holding and world continues to be fascinated by mad AI trade.

Hope remains for an action from the Indian government to arrest currency depreciation and FII outflows. But sadly, it is a big hope.

RCB is the IPL king again, for the 2nd year in a row. But the real diamond was the discovery of Vaibhav Sooryavanshi in this IPL season for India.

Sad scenes from Paris after the Champions League riots. Someone rightly said that Paris suffered more in a single day than Dubai in the last 3 months amid USA-Iran war.

Q4 earnings season has come to an end, and we are happy with the outcome from our recommended companies — Sansera, AMI, Craftsman, Happy Forgings, Wockhardt, Borosil, Fed Financial, Northern ARC and many did very well. Waiting for companies like VST Tillers, Tega, some chemical names to shine going ahead. Overall – a satisfied earnings season.

The big news today is clearly Wockhardt big USFDA approval. We would like to book some profits if stock opens up 20%. We expect a licensing deal soon as well.

While everyone is talking about AI, we should also acknowledge what Indian pharma companies are doing. Wockhardt's novel antibiotic ZAYNICH has secured USFDA approval. Along with the landmark licensing deal signed by Glenmark with Abbvie for its innovative biologic ISB 2001 and FDA acceptance of Zydus' novel molecule Saroglitazar for priority review, these recent developments are a watershed event in Indian pharma industry.

Some earnings and excitement are completely opposite to each other. Aequs, touted as a high-precision defence play, has a market cap of Rs 12,800 cr. Q4 sales was 367 cr with OPM at 1% and net loss (4 quarters of losses in last 5 quarters). Axiscades, touted as everything in technology and defence, has a market cap of Rs 7900 cr. Q4 sales 273 cr with OPM at 12.2% vs 14% and net profit at Rs 0.42 cr vs Rs 21 cr. Hear the concalls and you will come back bullish – but we look for consistency and honesty. There could be super growth stories, but at what valuations is the biggest question for us?

We have all seen the craze in railway stocks and now down 50% from highs and no buyers as execution is bad. Titagarh Rail, Jupiter Wagons. Also seen crazy days of PSUs like RVNL, IRFC, and many others. The key to wealth creation is not short-term crazy moves, but catching long-term structural stories at reasonable valuations.

At the end – in an exciting world where everyone knows everything – stay boring in investment if you want to stay on the wicket for long-term. It is simple, but not easy.

Warm regards,
Omkara Capital Private Limited, India
www.omkaracapital.in

Disclaimer: This newsletter is for informational purposes only and does not constitute investment advice. Please consult your financial advisor before making any investment decisions.