Business

Schaeffler India, a prominent player in the automotive and industrial components sector, has proposed a final dividend of 1400% for the financial year ending December 2024. This translates to Rs 28 per share for each equity share with a face value of Rs 2.

Let’s dive into the key details of the dividend announcement, relevant dates, historical trends, and contextual industry developments.

The Rs 28 Payout: Understanding the 1400% Dividend

A 1400% dividend means that for each share with a nominal (face) value of Rs 2, the company plans to distribute Rs 28 as a final dividend. This scale of dividend distribution is relatively uncommon in the Indian market and indicates strong financial performance and sustained profitability.

This payout reflects several core strengths in Schaeffler India’s financial and operational framework:

• Strong profitability is derived from a diversified portfolio of automotive and industrial solutions catering to domestic and international markets.
• Stable and ample cash reserves have enabled the company to maintain liquidity while continuing to invest in growth and technology.
• An ongoing commitment to shareholder returns, demonstrated through increasing dividend announcements in recent years and a clear strategy for value delivery.

In addition to reinforcing investor confidence, the announcement signals the company’s ability to balance capital expenditure with shareholder distribution. Schaeffler India’s dividend history, especially when viewed alongside its expansion and localisation initiatives, highlights a consistent track record of financial resilience. This resilience is underpinned by operational efficiency, strong governance, and a favourable positioning within India’s growing manufacturing and export ecosystem. (Source: www.financialexpress.com)

Dividend Eligibility: Record Date of April 23, 2025

To be eligible for this dividend, investors must hold Schaeffler India shares on or before April 23, 2025.

India follows a T+1 settlement system, which means any share purchase is settled one business day after the transaction. For instance, if an investor purchases shares on Monday, they are credited to the demat account by Tuesday. This makes it crucial for investors to complete their purchase transactions at least one day before the record date. Shares must be reflected in the demat account by the record date to qualify for dividend benefits.

Timeline for Dividend Payout

Subject to approval at the Annual General Meeting (AGM) scheduled for April 23, 2025, the dividend will be paid within 30 days, i.e., by May 23, 2025. If approved, the dividend amount of Rs 28 per share will be disbursed to eligible shareholders through established banking and postal channels. (Source: www.financialexpress.com)

Disbursement will be executed via:

• Electronic credit to the bank account linked with the investor’s demat account is the most common and efficient payment method in the current financial system.
• Physical instruments such as cheques or demand drafts may be used in exceptional cases where shareholders still hold physical share certificates or bank account details are not updated with the depository.

To avoid delays, investors are encouraged to verify and update their bank details with their respective depositories or registrar and transfer agents (RTAs) before the record date. Ensuring accurate records helps streamline the dividend payment process and reduces the risk of revalidation or return of instruments due to incorrect account information or dormant accounts.

Schaeffler’s Dividend History

Schaeffler India has shown a consistent upward trend in dividend payouts over the past few years:

• FY22: Rs 24 per share
• FY23: Rs 26 per share
• FY24 (proposed): Rs 28 per share

In recent years, improved revenues, operational efficiencies, strong order books, and strategic alignment with industry demands have supported the company’s performance. (Source: www.financialexpress.com)

Stock Performance Overview

Current Share Price (16-04-2025): Rs 3,153.20
Daily Change: +4%

Performance Snapshot:

• 5-Day: +5%
• 1-Month: -7%
• 6-Month: -21%
• Year-to-Date: -9%

The short-term appreciation following the dividend announcement contrasts with the moderate-to-negative performance over longer durations. This indicates a response driven by the dividend declaration, while broader sector trends and market sentiment influence medium-term valuations.

Connection to Broader Industry Trends: The ‘India Advantage’

Schaeffler India’s dividend declaration reflects the larger positive momentum in the auto components industry. Several macroeconomic and policy-level developments contribute to this landscape:

• Domestic Demand: An expanding working-age population, rising income levels, and urbanisation drive vehicle ownership and, consequently, auto component demand.
• Export Growth: India currently exports over 25% of its auto component production. The industry targets US$ 80 billion in exports by 2026. With its robust manufacturing capabilities and global integration, Schaeffler is positioned to leverage these export opportunities.
• Policy Support: Government initiatives such as 100% FDI under the automatic route, the second phase of the FAME scheme, and the introduction of Bharat NCAP are designed to encourage `localisation, promote safety innovation, and enhance overall manufacturing competitiveness.
• Cost Efficiency: India offers a competitive manufacturing environment due to lower labour and infrastructure costs, alongside abundant availability of steel and other materials. This results in production costs that are 10–25% lower compared to Europe and Latin America.

These factors collectively strengthen the auto component sector’s outlook, thereby supporting sustained shareholder value creation by companies like Schaeffler. (Source: www.ibef.org)

Conclusion

Schaeffler India’s 1400% dividend for FY24 marks a significant milestone in its financial journey, underscoring strong corporate performance and sectoral strength. It rewards shareholders for their continued trust and highlights the company’s alignment with India’s evolving manufacturing ecosystem.

For current shareholders, this payout represents tangible returns on investment. For industry observers, it provides insight into the resilience and potential of India’s auto components landscape. The company’s operational discipline, strategic foresight, and favourable policy backdrop create a conducive environment for continued growth.

As the Indian economy moves forward focusing on industrial self-reliance, localisation, and export expansion, firms like Schaeffler India are likely to play a pivotal role in shaping this narrative, benefiting stakeholders across the value chain.

Disclaimer Note: The securities quoted, if any, are for illustration only and are not recommendatory. This article is for education purposes only and shall not be considered as a recommendation or investment advice by Equentis – Research & Ranking. We will not be liable for any losses that may occur. Investments in the securities market are subject to market risks. Read all the related documents carefully before investing. Registration granted by SEBI, membership of BASL & the certification from NISM in no way guarantee the performance of the intermediary or provide any assurance of returns to investors.

FAQs

More Retail, a prominent name in India’s food and staples market, is preparing to launch its initial public offering (IPO) next year. Backed by Amazon, the company is charting an aggressive growth strategy with plans to double its store network over the next five years. 

The move comes as consumer preferences continue shifting toward organized retail and digital grocery platforms. With supermarkets becoming more integrated with online shopping, More Retail is counting on its hybrid store model to drive long-term success. Source: Moneycontrol

A Growing Presence in Indian Retail

Headquartered in Mumbai, More Retail operates one of the country’s largest grocery and supermarket chains. The brand has become synonymous with neighborhood convenience stores and fresh produce offerings. As of the latest count, the company runs 775 stores across India. This widespread network places it among the top players in India’s evolving food retail space.

Key Financial Highlights

In FY25, More Retail recorded gross sales of nearly ₹5,000 crore (approximately $580 million), reflecting an 11% rise from the previous year—underscoring the growing consumer shift toward organized food retail, especially models integrating physical stores and digital platforms. 

In comparison, the company reported standalone revenues of ₹4,148.69 crore in FY24. While revenues showed an upward trend, the retailer continued to operate at a loss, posting a deficit of ₹532.62 crore—slightly lower than the ₹550 crore loss reported the year before, as per data from business intelligence platform Tofler. Source: Moneycontrol/ Mint

 

IPO Plans in the Pipeline

More Retail is eyeing an IPO in 2026, subject to favorable market conditions. The company management is aware of the market fluctuations, especially amid concerns about the current global recession. However, insiders remain confident that the company’s fundamentals and future potential will gain strong investor interest. Source: Moneycontrol

The Amazon Connection Fueling Hybrid Growth

A significant factor in More Retail’s recent success is its partnership with Amazon. Through Amazon Fresh, the e-commerce giant’s grocery delivery arm, More Retail’s physical stores also function as fulfillment centers. This hybrid model—combining traditional retail with e-commerce logistics—has led to higher margins than standalone brick-and-mortar outlets.

The integration with Amazon has enhanced operational efficiency and allowed the brand to serve a broader base of online consumers. As e-grocery demand surges, More’s dual-role stores are positioned to take advantage of both foot traffic and online orders, offering customers greater flexibility and reliability.

Store Expansion

More Retail plans to double its total store count within the next five years. As part of this ambitious expansion, the company will add more than 500 new outlets across approximately 160 Indian cities. Most of these stores will be aligned with the Amazon Fresh network, further deepening their strategic partnership.

This expansion drive is not just about increasing the retail footprint—it also aims to enhance last-mile delivery capabilities for online grocery shoppers. By using physical stores as fulfillment hubs, More Retail can shorten delivery times while reducing logistics costs. Source: Moneycontrol

Same-store sales Momentum Builds Confidence

In addition to opening new stores, More Retail has witnessed robust performance at existing locations. Same-store sales, a key metric in the retail industry, surged 23% in the fiscal year 2025. This surge reflects increased consumer engagement and spending, possibly driven by post-pandemic recovery, rising disposable incomes, and growing comfort with organized retail channels.

The management expects this growth trajectory to continue, fueled by in-store purchases and the rising adoption of digital grocery platforms.

Slotted Deliveries: A Strategic Differentiator

More Retail also focuses on slotted deliveries—customers pick a preferred time window for receiving groceries. This approach offers convenience and predictability, especially for working professionals and households managing daily schedules.

While quick commerce models (offering 10-minute deliveries) have dominated headlines and urban customer demand, More Retail opts for a more sustainable and cost-efficient route. The company sees slotted deliveries as a better fit for its hybrid format, especially in tier-2 and tier-3 cities where immediate delivery may not be feasible or necessary.

Quick Commerce Boom Reshaping the Landscape

India’s quick commerce segment has experienced explosive growth over the past two years. According to recent industry estimates, the market share of this segment has surged nearly fivefold since 2022, now valued between $6 billion and $7 billion. Quick commerce accounted for over two-thirds of all e-grocery orders last year, highlighting a fundamental shift in how Indian consumers buy their daily essentials.

Despite this, More Retail is not rushing to replicate the 10-minute delivery model. Instead, it focuses on reliability, variety, and delivery slot customization—features that appeal to a broader demographic nationwide. Source: Moneycontrol

Evolving Consumer Behavior Driving Transformation

The success of More Retail’s hybrid model underscores broader trends in consumer behavior. Indian shoppers increasingly seek convenience, competitive pricing, and a blend of offline and online experiences. The pandemic accelerated the shift toward digital grocery shopping, but many still value the trust and familiarity of physical stores.

By merging both formats, More Retail caters to this blended demand profile, offering a one-stop solution that aligns with modern expectations.

Riding on India’s Grocery Boom

More Retail’s efforts align strategically with Amazon’s focus on high-margin hybrid models. With a target to double its store count, enhance slotted delivery systems, and maintain strong same-store sales growth, the company is positioning itself as a relevant player in India’s $600 billion food and grocery market.

While macroeconomic uncertainties persist, the long-term fundamentals of India’s organized retail sector remain solid. Rising urbanization, increasing internet penetration, and evolving consumer needs are expected to fuel further growth in the grocery and staples category.

As More Retail heads toward its IPO, investors and industry watchers will keenly observe its ability to scale sustainably while maintaining profitability.

Disclaimer Note: The securities quoted, if any, are for illustration only and are not recommendatory. This article is for education purposes only and shall not be considered as a recommendation or investment advice by Equentis – Research & Ranking. We will not be liable for any losses that may occur. Investments in the securities market are subject to market risks. Read all the related documents carefully before investing. Registration granted by SEBI, membership of BASL & the certification from NISM in no way guarantee the performance of the intermediary or provide any assurance of returns to investors.

One of the most abided rules of investing is identifying and holding a good stock for the long term. For the investors of Alfa Transformers Limited, this strategy turned fruitful when the stock jumped from Rs.8 in 2022 to Rs.81.73 in 2025 (closing price as of 11th April 2025). 

Though the stock garnered 13.67% in the past month owing to the constant fluctuations, Alfa Transformers Limited grew 920.35% over the last three years as of 14th April 2025. The stock recorded a 10% intraday gain on the same date despite the lingering broad sectoral decline in the capital goods segment. What caused the rally, and what made the stock resistant in the long run? Let’s understand.

Overview Of Alfa Transformers Limited:

Incorporated in 1982, Alfa Transformers Limited is a Bhubaneswar-based manufacturer of power and distribution transformers. With over four decades of presence in the electrical equipment sector, the company has built a strong footprint both in domestic and international markets. Its manufacturing capabilities span two well-equipped units located in Bhubaneswar and Vadodara, capable of producing up to 10 MVA and 36 KV class transformers. The company’s product line includes:

• Single and Three-phase Transformers
• Power Transformers (up to 15 MVA, 36 KV)
• Energy-Efficient and Low-Loss Transformers
• Special Duty Transformers for Induction Furnaces, ARC, and Submerged ARC Furnaces
• Stabilized Output Transformers
• Step Lap CRGO and Amorphous Metal Alloy Core Laminations

Over the years, Alfa has diversified into project exports and technical consultancy services, strengthening its business portfolio. The company has consistently served reputed clients in public and private sectors, including names like Odisha Power Transmission Company, Bhabha Atomic Research Centre, Department of Atomic Energy, and Reliance Jio Infocomm. Internationally, it has established a strong presence in UAE, Libya, Suriname, Nepal, and Egypt. It has maintained ongoing supply relationships with utilities such as GECOL in Libya and the Dubai Electricity & Water Authority.

Revenue Trend Of Alfa Transformers:

The company’s profits have grown over the last five years as it moved from a string of losses in FY2020 to a profitable financial year in FY2024 with a net profit of Rs.7.63 crore. Several factors account for these profit fluctuations. The decline in operating profit and overall profitability margins experienced in FY21 was primarily due to the lower revenue generated during the pandemic-induced disruptions and elevated operational expenses.

The subsequent improvement in financial performance, leading to profitability in FY23 and continued growth in the first half of FY24, was largely driven by a higher volume of order execution and a better liquidity position, which was supported by the infusion of funds from the promoters and improvement in the effective collection of receivables.  (Source: Care Ratings Press Release)

While the annual profit trend is positive, the recent quarterly data reveals a sequential decline in net profit despite a strong year-over-year growth in the latest quarter. In Q3 FY2024-25, Alfa Transformers posted a net profit of Rs.0.40 crore, up 81.82% YoY but down 59.18% from Rs.0.98 crore in the September 2024 quarter. Despite higher sales, that Q2 profit was already 83.81% lower than the Rs.6.06 crore reported in Q2 the previous year. EPS also dropped sharply from Rs.6.62 to Rs.0.10 YoY, and the company reported a net loss of Rs.0.25 crore in Q1 FY2024-25. 

Overview Of Current And Future Projects

Alfa Transformers continues strengthening its core business of designing, manufacturing, and selling power and distribution transformers, with capacities ranging from 10KVA to 10MVA. The company has demonstrated consistent business traction through notable order wins across its two manufacturing facilities in Bhubaneswar and Vadodara.

The list of significant orders includes the purchase order of Rs.27.39 crore from the Gujarat Electricity Board. In January 2025, the company bagged multiple purchase orders worth Rs.5.41 crore for a range of transformer products. Later, in February 2025, the company secured a domestic order worth Rs.1.25 crore from TP Western Odisha Distribution Limited, to be executed within 67 days. 

Financials & Valuation To Consider For Alfa Transformers Limited

Investors looking to invest in Alfa Transformers should evaluate the company’s financial health and key performance metrics before making any decisions. Other factors to consider for the same, apart from the revenue and profit trends, include the following-

1. The company’s market capitalization is Rs.74.8 crore (11th April 2025). 
2. Valuation metrics such as the Price-to-Earnings (P/E) ratio of 60.05 and Price-to-Book (P/B) ratio of 3.09 suggest that the stock is trading at a premium, particularly when compared to industry averages (sector P/E= 50.06).
3. CARE Ratings and CRISIL assigned the “ISSUER NOT COOPERATING” status to the company’s credit ratings in September 2023. This designation indicates that Alfa Transformers has not provided the necessary cooperation for rating agencies to conduct a detailed and up-to-date evaluation of its creditworthiness. (Source: Care Ratings Press Release)
4. The key financial ratios of the company paint a mixed picture-

Financial Year	Debt-to-Equity Ratio	Current Ratio	ROCE (%)
FY2020	0.41	1.17	-18.69
FY2021	1.27	1	-28.27
FY2022	-20.01	0.72	-16.58
FY2023	5.55	1.27	7.6
FY2024	0.98	1.4	11.24

The company has shown marked improvements in profitability, reflected by an increase in Return on Equity (ROE) and Return on Capital Employed (ROCE) in FY2024. Its current ratio has also improved, reflecting better liquidity. However, the fluctuating debt-to-equity ratio, particularly the negative value in FY2022, raises concerns about its financial leverage and risk. Investors should monitor future financial statements for greater clarity on these trends.

Bottomline:

Alfa Transformers has demonstrated impressive growth, with its stock price skyrocketing by 920% over the past three years. The company’s strong market position, successful order wins, and improved financial performance over the past year highlight its potential. However, concerns about its premium valuation and the lack of cooperation with rating agencies pose risks for potential investors. You should carefully analyze the company’s financial health, quarterly performance trends, and any future updates before making investment decisions. Remember, thorough research is always the best approach to investing.

Disclaimer Note: The securities quoted, if any, are for illustration only and are not recommendatory. This article is for education purposes only and shall not be considered as a recommendation or investment advice by Equentis – Research & Ranking. We will not be liable for any losses that may occur. Investments in the securities market are subject to market risks. Read all the related documents carefully before investing. Registration granted by SEBI, membership of BASL & the certification from NISM in no way guarantee the performance of the intermediary or provide any assurance of returns to investors.

Artificial Intelligence (AI) is quickly reshaping industries across the globe, and India is eager to become a major force in this transformation. Understanding the importance of high-end computing infrastructure for AI advancement, the Indian government introduced the IndiaAI Mission. In March 2024, the Union Cabinet approved the initiative with a significant allocation of ₹10,371 crore to be invested over five years.

This ambitious initiative aims to provide affordable access to Graphics Processing Units (GPUs), essential for AI computations, by subsidizing 40% of their cost. This subsidy reduces the price to under one dollar per hour of GPU usage, making it the most cost-effective rate globally.

Source: economic times

Nvidia Bounces Back with Strong Results

Talking about the global scenario, international tech giant Nvidia is also riding the AI tech boom as the company reported solid performance. Nvidia’s revenue jumped 78% to $39.33 billion in the three months ending in January 2025. Its profit also rose by 80%, reaching $22.09 billion. These numbers show that the demand for Nvidia’s A.I. chips remains strong.

Nvidia’s quarterly results surpassed Wall Street expectations, beating forecasts of $38.32 billion in sales and $21.08 billion in profit. For the current quarter, the company expects revenue to grow by 65% year-on-year to $43 billion. While this marks a slower pace compared to the previous quarter, it still exceeds analyst estimates by around $1 billion.

Last month, Nvidia lost $600 billion in market value in just one day. This drop happened because some investors started worrying about the future of the company. After the Chinese start-up  DeepSeek claimed it developed its artificial intelligence (A.I.) systems using significantly fewer A.I. chips and at a much lower cost than other companies, it led to question Nvidia’s strong position in the A.I. chip industry.

Source: nytimes.com

Major Tech Players Show Interest

Coming back to India’s AI future, the Government’s initiative to offer affordable GPU access has garnered attention from leading technology and telecom companies. Industry giants such as Google, Airtel, Tata Consultancy Services (TCS), and Infosys participated in a pre-bid meeting on March 26 for the second round of applications under the IndiaAI Mission’s GPU initiative. 

Other notable participants included AMD, BSNL, Dell, Deloitte, Hewlett-Packard Enterprise (HPE), IBM, L&T, NetApp, Netweb, NTT, Oracle, Palo Alto Networks, Salesforce, ST Telemedia, Ola Krutrim, and Neysa. These companies are evaluating potential involvement in the project, though some may choose not to apply formally. The deadline for bid submissions in this round is April 30.

Source: economic times

Progress from the First Round

In the first round, which concluded on January 28 2025, the government empaneled ten companies, including Reliance Jio, Yotta, E2E, and NxtGen. These firms collectively offered 14,517 GPUs, surpassing the initial target of 10,000 GPUs. Other technically qualified companies from this round include CMS, CtrlS, Locuz, Orient, Tata Communications, and Vensysco.

Winners of the second round of the tender will need to either match or beat the lowest rates set in the first round. In that initial round, the average cost per AI compute unit stood at ₹115.85 per hour, while the rate for a high-precision unit was ₹150 per hour.

Source: economic times

An Overview of the IndiaAI Mission

In March 2024, the Union Cabinet approved the IndiaAI Mission with a substantial budget of ₹10,371 crore allocated over five years. The primary goal of this mission is to establish a scalable AI ecosystem through public-private partnerships. A significant component involves creating a supercomputing infrastructure equipped with over 10,000 Graphics Processing Units (GPUs). These GPUs are essential for handling complex AI and machine learning tasks, offering faster data processing capabilities compared to traditional CPUs.

Expanding AI Horizons

Experts view the involvement of established IT companies in the IndiaAI Mission as a shift from a “Make in India for India” approach to a broader “Make in India for the World” vision. 

They observed that the mission is now attracting a wider range of participants beyond just startups and data center providers, highlighting the growing involvement of IT/ITeS, BPO, and KPO giants that cater to global markets from India.

Government’s Commitment to AI

By subsidizing GPU costs, the government aims to provide affordable computing access to startups and researchers. Additionally, the mission supports firms building foundation models within the country. 

Union Minister for Electronics and IT, Ashwini Vaishnaw, highlighted that India is working across five layers of AI: the chip layer, foundational model layer, application layer, data center and hyperscaler layer, and the talent layer. The goal is to develop three foundational models by the end of this year and have an indigenous GPU ready in the next three to four years.

Source: economic times

Conclusion

India’s proactive steps in subsidizing GPU costs and fostering collaborations with major tech companies underscore its commitment to becoming a global AI hub. By building robust AI infrastructure and encouraging participation from both startups and established firms, the IndiaAI Mission is poised to drive significant advancements in the AI landscape, benefiting not only India but also contributing to the global AI community.

Disclaimer Note: The securities quoted, if any, are for illustration only and are not recommendatory. This article is for education purposes only and shall not be considered as a recommendation or investment advice by Equentis – Research & Ranking. We will not be liable for any losses that may occur. Investments in the securities market are subject to market risks. Read all the related documents carefully before investing. Registration granted by SEBI, membership of BASL & the certification from NISM in no way guarantee the performance of the intermediary or provide any assurance of returns to investors.

Leading logistics company Delhivery has announced its acquisition of Ecom Express for ₹1,407 crore in an all-cash deal. While the transaction is significant in itself, the story behind it makes it more compelling. Once valued at nearly ₹7,000 crore, Ecom Express is now being acquired at an 80% discount. This shift reflects a downturn for one company and the changing dynamics of India’s startup and logistics ecosystem.

Here’s a breakdown of the deal, its structure, the reasons behind the valuation cut, what it means for Delhivery, and the larger signals it sends across the industry.

The Deal: What’s on the Table

Delhivery will acquire a 99.4% stake in Ecom Express in an all-cash deal. The deal provides a complete exit to Ecom Express’s current shareholders, including global investors like Warburg Pincus, CDC Group (British International Investment), Partners Group, and the company’s founders.

Delhivery had previously invested in Ecom Express in 2017 through its fund, making this an acquisition and a full-circle return on an earlier strategic bet. This deal also provides Delhivery with an immediate expansion of service capacity, especially in regions where Ecom Express has already built strong infrastructure. It creates opportunities for streamlining logistics operations and boosting last-mile delivery performance.

The deal’s structure also reflects a growing trend of companies using stock options with cash to preserve liquidity while securing strategic acquisitions. For Delhivery, this is a capital-efficient way to expand aggressively without overstretching financially. Source: Economic Times

Why the Valuation Drop?

The detail that stands out the most is the steep markdown from a ₹7,000 crore valuation in 2021 to ₹1,407 crore in 2024. A number of operational and market realities contributed to this:

• Ecom Express lost its largest client, Amazon, which pulled back a significant portion of its business.
• The company saw the exit of key leadership, including co-founder and CEO T.A. Krishnan.
• Revenue growth remained largely flat, failing to keep pace with competitors.
• With mounting costs and a challenging funding environment, existing investors hesitated to provide further capital.

As investor confidence weakened and internal momentum stalled, Ecom Express faced limited options. The decision to sell to Delhivery was likely the most viable outcome, offering stakeholders a complete exit and some value recovery.

Furthermore, as the e-commerce logistics market evolved, Ecom Express struggled to innovate or diversify its services. In contrast, competitors like Delhivery leveraged technology and data analytics to improve efficiency and gain market share, creating a clear gap in strategic positioning. Source: Economic Times

Strategic Gains for Delhivery

For Delhivery, this acquisition isn’t just opportunistic—it’s strategic.

By acquiring Ecom Express, Delhivery gets:

• Increased last-mile delivery capacity, particularly in Tier 2 and Tier 3 cities
• Stronger rural reach, helping the company serve customers in underpenetrated markets
• Higher shipment volumes, especially in the fast-growing e-commerce segment
• Operational synergies through the integration of delivery networks, hubs, and technology platforms

It also offers cost optimization opportunities. With overlapping delivery zones and infrastructure, Delhivery can consolidate operations, shut redundant facilities, and optimize manpower.

This is especially important in a sector where margins are thin, and efficiency often determines profitability. Delhivery is aiming to become a long-term profitable logistics company, and this acquisition supports that direction.

The move also allows Delhivery to neutralize competition by absorbing a former rival. With fewer players vying for the same contracts and customer base, Delhivery will likely gain pricing power, better contract terms, and increased share-of-wallet from enterprise clients.

Revenue: Flat Growth vs. Upward Momentum

The operating revenue figures are key data points that explain the deal’s rationale. While Delhivery and Blue Dart posted steady growth between FY2023 and FY2024, Ecom Express showed only a marginal increase:

This flat growth underlines Ecom Express’s struggle to scale revenue in a rapidly expanding market, making Delhivery’s acquisition offer both timely and logical. Delhivery’s consistent revenue climb positions it as a consolidator with the financial muscle to absorb and revitalize underperforming players.

What This Means for the Industry

This acquisition isn’t just about two companies. It reflects a broader trend in Indian logistics and startup funding:

• Consolidation is accelerating as market leaders buy out weaker or slower-growing peers
• Profitability is being prioritized over high valuations
• Private equity and venture capital are more cautious, especially in capital-heavy sectors
• Publicly listed companies like Delhivery have an edge thanks to easier access to funding and deal-making tools

As investors increasingly demand returns and not just growth, companies are under pressure to rethink their business models. Asset-heavy firms like Ecom Express, without significant tech-driven differentiators or consistent revenue upticks, are becoming targets for buyouts rather than fresh capital.

What’s also becoming clear is that the logistics industry is no longer just about delivery; it’s about data, network intelligence, and the ability to adapt quickly. Companies like Delhivery that are betting on end-to-end integration and real-time tracking solutions are setting the pace for the future.

The Road Ahead for Delhivery

With the acquisition completed, Delhivery will begin integrating Ecom Express’s assets. This includes:

• Unifying sorting centers, warehouses, and delivery fleets
• Aligning technology platforms and back-end systems
• Restructuring teams and roles for efficiency

• Successful execution could lead to:

• Lower cost-per-delivery through scale
• Faster turnaround times
• Better customer satisfaction metrics

However, integrations are never easy. Delhivery will need to carefully manage cultural alignment, system migrations, and operational disruptions to realize the benefits of this deal fully.

Conclusion

Delhivery’s acquisition of Ecom Express marks a turning point in India’s logistics story. It brings together two players in a rapidly evolving space but also highlights the hard truths facing startups today. The message is clear for founders and investors alike: valuations must be earned, not assumed.

As Delhivery strengthens its presence and works toward profitability, this deal could set the tone for more such consolidations in the near future. It also raises the bar for performance in logistics—where technology, efficiency, and adaptability determine who thrives and who exits.

Disclaimer Note: The securities quoted, if any, are for illustration only and are not recommendatory. This article is for education purposes only and shall not be considered as a recommendation or investment advice by Equentis – Research & Ranking. We will not be liable for any losses that may occur. Investments in the securities market are subject to market risks. Read all the related documents carefully before investing. Registration granted by SEBI, membership of BASL & the certification from NISM in no way guarantee the performance of the intermediary or provide any assurance of returns to investors.

FAQs

The effects of the US-declared sweeping tariffs were evident in the red zones that covered the market yesterday. However, positivity made a comeback today, 8th April 2025, and along with it brought a stock under the limelight- Bharat Electronics Limited (BEL).

BEL share price started the trading session with a jump of nearly 4% in the initial hours after the announcement of bagging a significant order from the Ministry of Defence (MoD). What was the announcement, and how did it affect the company’s share price? Let’s decode. 

The Announcement:

The Navratna PSU, Bharat Electronics Limited, on 8th April 2025, announced that it secured an order worth Rs.2210 crore from the Indian Air Force. The order is to supply an indigenously developed Electronic Warfare Suite for the IAF’s Mi-17 V5 helicopters. The suite includes a Radar Warning Receiver (RWR), a Missile Approach Warning System (MAWS), and a Counter Measure Dispensing System (CMDS). According to the company’s exchange filing, the EW suite has been designed by CASDIC and DRDO and will be manufactured by BEL.

With this order, BEL’s total order inflow for the current financial year (FY25) is Rs.2,803 crore. A few other orders during the year that contributed to the order book were

• 14th March 2024: BEL entered a contract with Larsen & Toubro Limited (L&T) to supply 14 Communication and Electronic Warfare (EW) sensors and systems, which were agreed to be manufactured by BEL domestically. The contract was worth Rs.847.70 crore
• 12th March 2025: Rs.2,463 crore order from MoD for the supply of Ashwini Radars for IAF

Additionally, BEL signed another crucial contract worth Rs.593.22 crore with the IAF for the Akash Missile System maintenance services.

Effect Of The Announcement:

Over the years, every announcement of a new order or project by BEL has garnered a positive reaction from the market towards its shares. Even this time, the BEL share price reached an intraday high of Rs.288 and jumped nearly 4% in the initial trading hours after the announcement of the new IAF order. 

As of 8th April 2025, the stock has given a return of 25.16% in the past year and 250.19% in the past three years. 

Overview Of Bharat Electronics Limited:

Established in 1954, BEL is a leading Public Sector Undertaking (PSU) under the Ministry of Defence, specializing in designing, manufacturing, and supplying advanced electronic equipment and systems primarily for the defense sector. The company was conferred with the Navratna status in 2007 and with a strong presence across 29 strategic business units (SBUs) – including Cybersecurity, Unmanned Systems, and Arms & Ammunition – BEL’s defense segment contributed 81% to its revenue in FY24, marking steady execution and innovation. 

BEL is also tapping into global opportunities. Its exports – ranging from radar modules to communication systems – grew over 236% between FY22 and FY24, making up 4% of its revenue. The company has set up overseas marketing offices in Oman, Vietnam, and Sri Lanka while expanding operations in Singapore and New York, reflecting its ambitions to become a global defense player.

As of July 2024, BEL has signed strategic MoUs with domestic and international players, including AAI, Delhi Metro, IISC, Rosoboronexport (Russia), and Reliasat Inc. (Canada). The company operates nine manufacturing units across India, with major facilities in Bangalore and Ghaziabad. It invested Rs.650 crore in capex during FY24 to further focus on new plants and modernization.

BEL has kept innovation central to its growth, with 7% of its revenue consistently plowed into R&D. The company also drives Indigenous development – contributing to 77% of its revenue from in-house products. With 1,199 IPRs filed and 40 new products introduced in FY24, BEL continues to evolve, embracing new business models and forming joint ventures, such as the newly formed BEL IAI AeroSystems Pvt. Ltd. with Israel Aerospace Industries. 

Source: Annual Report And Press Release

Financial Overview:

As of FY2024, BEL has followed a consistent pattern of increasing revenue over the past five fiscal years.

The company’s year-on-year revenue growth rates were 6% in FY20, 8.9% in FY22, 15.22% in FY23, and 16.23% in FY24. Multiple factors contributed to this trend, including the execution of orders from its order book, increased demand in the defense sector, and diversification into non-defense and export markets.

For FY2024, the company’s revenue reached Rs.20268.24 crore, of which the net profit was Rs.3985.24 crore, with the PAT margin being 20%. Additionally, the consistent expansion and profits have kept the net worth positive, reaching Rs.16,082 crore in FY2024. 

Takeaway For Investors:

Bharat Electronics Limited has reported consistent revenue growth over the last five financial years, supported by a strong order book and a steady stream of contracts from defense and non-defense segments. The company has consistently maintained its presence in core defence electronics while gradually expanding its reach in civilian markets and exports. Its operational scale, R&D investments, and ongoing capital expenditure reflect its intent to sustain long-term capabilities.

Conclusion:

While recent developments and financial performance highlight BEL’s role in India’s defense ecosystem, investment decisions should be based on a comprehensive evaluation of the company’s fundamentals, market conditions, and individual risk appetite. It is thus suggested that before investing, you conduct your due diligence or consult financial experts to make the most suitable choice for your portfolio.

Disclaimer Note: The securities quoted, if any, are for illustration only and are not recommendatory. This article is for education purposes only and shall not be considered as a recommendation or investment advice by Equentis – Research & Ranking. We will not be liable for any losses that may occur. Investments in the securities market are subject to market risks. Read all the related documents carefully before investing. Registration granted by SEBI, membership of BASL & the certification from NISM in no way guarantee the performance of the intermediary or provide any assurance of returns to investors.

India’s insurtech sector has experienced remarkable growth, attracting over USD 2.5 billion in funding and positioning itself as a significant player in the global insurance technology landscape. This surge is driven by technological innovation, evolving consumer needs, and strategic international expansions. Let’s explore the factors fueling this boom, examine key players making strides, and address their challenges in sustaining this momentum.

The Rise of India’s Insurtech Sector

According to a report by Boston Consulting Group (BCG) and the India InsurTech Association (IIA), India is home to over 150 insurtech companies, including 10 unicorns and “soonicorns” and more than 45 “minicorns.” Over the past five years, the sector has witnessed a 12-fold increase in revenue, reaching USD 750 million. 

Cumulative funding has surpassed USD 2.5 billion, bringing the total ecosystem valuation to over USD 13.6 billion. While global insurtech funding has slowed, the Asia-Pacific region, including India, has shown resilience, indicating significant growth opportunities. Source: Economic times

The Catalyst: AI’s Global Impact on Insurance

AI’s influence on the insurance sector is profound and multifaceted. A report by PwC highlights that 75% of European insurers are increasing investments in AI-driven underwriting and claims automation, with five out of six firms expecting AI to be central to their operations within the next three to five years. 

The need for operational efficiency, enhanced customer experiences, and competitive differentiation drives this paradigm shift. Indian Insurtech startups, with their expertise in AI and automation, are seizing this opportunity to offer tailored solutions to international insurers.

Key Drivers of Growth

Several factors contribute to the rapid expansion of India’s insurtech sector:

1. Technological Advancements: Integrating artificial intelligence (AI), machine learning, and blockchain has revolutionized underwriting, claims processing, and customer service, making insurance more accessible and efficient.
2. Regulatory Support: Initiatives by the Insurance Regulatory and Development Authority of India (IRDAI) have created a conducive environment for innovation, encouraging startups to develop new solutions.
3. Increased Digital Adoption: The proliferation of smartphones and internet connectivity has enabled insurers to reach a broader audience, particularly in underserved regions.
4. Changing Consumer Behavior: A growing middle class with rising disposable income is more aware of the importance of insurance, leading to increased demand for diverse insurance products.

Source: Livemint

Spotlight on Leading Insurtech Startups

Several Indian insurance companies have emerged as leaders, driving innovation and expanding their domestic and international footprint.

Source: India Insurtech Annual Report 2024

Ensuredit

Ensuredit, a Bengaluru-based insurtech firm, assists insurers and brokers in optimizing distribution. The company has expanded into West Asia and Europe and is preparing for a US launch later this fiscal year. In the fiscal year ending March 31, 2024, Ensuredit generated ₹22.63 crore in revenue, with expenses totaling ₹32.67 crore, resulting in a loss of ₹3.51 crore. 

InsuranceDekho and Heph

InsuranceDekho’s SaaS platform, Heph, is gearing up for international expansion, with plans to enter West Asia by the second quarter and Southeast Asia by the end of FY26. Since FY25 was its first year of operations, revenue figures are unavailable. 

Turtlemint

Turtlemint, which operates the SaaS platform Turtlefin, is actively exploring acquisitions to enter newer geographies like Southeast Asia. The company is already present in West Asia. Its insurance arm saw revenue from operations surge 3.2 times to ₹505.05 crore in FY24, according to its annual financial statement filed with the Registrar of Companies.
Source: Livemint

International Expansion: Opportunities and Challenges

Indian insurtech startups are no longer content with the domestic market. Facing intensifying competition at home and comparatively smaller transaction sizes, these firms are aggressively expanding into West Asia, Southeast Asia, and Europe—regions where insurers are ramping up digital adoption and willing to pay more for advanced tech solutions.

Opportunities:

• Higher Margins: Clients in international markets often have a greater propensity to pay for innovative solutions, allowing Indian Insurtech to secure higher take rates than the domestic market.
• Growing Demand for Digital Solutions: Insurers worldwide are accelerating digital investments to modernize operations, creating opportunities for Indian SaaS-driven Insurtech, known for their cost efficiency and expertise in automation.
• Smaller Transaction Sizes: The relatively modest size of transactions in India limits revenue potential, encouraging firms to target regions with higher-value deals.​
• Advancements in Artificial Intelligence (AI): AI is revolutionizing underwriting, claims processing, and distribution, prompting insurers worldwide to invest in modernizing their operations.​
• Expertise in Niche Areas: Indian Insurtech excels in micro-insurance, embedded insurance, and B2B2C partnerships, making them attractive partners for Southeast Asia and the Middle East insurers.

Challenges:

• Regulatory Compliance: Navigating diverse regulatory landscapes requires significant effort and time, as securing approvals and forming partnerships with local authorities can be lengthy.
• Local Competition: Indian startups must compete against well-entrenched local players with deep market knowledge and existing distribution networks.
• Customization: Adapting products and services to align with region-specific insurance models and customer preferences is essential for success in new markets.

Strategic Approaches for Successful Expansion

To navigate these challenges, Indian insurance is adopting strategic measures:

1. Forming Local Partnerships: Collaborating with firms that have established operations in target markets can facilitate smoother market entry and compliance navigation. ​
2. Product Localization: Tailoring solutions to meet each market’s specific needs and regulatory requirements enhance acceptance and effectiveness. ​
3. Compliance Readiness: Proactively engaging with regulatory bodies and ensuring adherence to local laws can expedite approval and build trust. Source: Livemint

The Road Ahead

The future of India’s insurtech sector appears promising, with continued investments and innovations on the horizon. However, startups must strategically navigate the complexities of international expansion, regulatory compliance, and market competition to sustain their growth trajectory. Collaborations with global partners, ongoing technological advancements, and a customer-centric approach will be pivotal in shaping the next growth phase for Indian insurtech.

Disclaimer Note: The securities quoted, if any, are for illustration only and are not recommendatory. This article is for education purposes only and shall not be considered as a recommendation or investment advice by Equentis – Research & Ranking. We will not be liable for any losses that may occur. Investments in the securities market are subject to market risks. Read all the related documents carefully before investing. Registration granted by SEBI, membership of BASL & the certification from NISM in no way guarantee the performance of the intermediary or provide any assurance of returns to investors.

FAQs

As the United States, under President Donald Trump, initiates its “reciprocal tariffs” on April 2, 2025, India stands at a critical juncture, evaluating multifaceted strategies to mitigate potential economic repercussions. These tariffs, aimed at addressing perceived trade imbalances, have prompted India to assess various scenarios and formulate comprehensive responses to safeguard its economic interests.

Understanding the Implications of U.S. Tariffs

The U.S. tariffs are designed to impose additional duties on imports from several countries, including India, to encourage fair trade practices and reduce trade deficits. For India, a nation with significant export ties to the U.S., these tariffs could impact various sectors, particularly those heavily reliant on the American market. 

In the fiscal year 2023-24, the U.S. accounted for approximately 18% of India’s total goods exports, underscoring the importance of this trading relationship (Economic Times).

India’s Strategic Response

In anticipation of the tariffs, India has adopted a measured approach, focusing on several key strategies:

1. Bilateral Negotiations: India has engaged in extensive discussions with U.S. officials to address trade concerns and explore avenues for mutual concessions. These negotiations have led to finalizing the Terms of Reference for a Bilateral Trade Agreement (BTA), facilitated by the Prime Minister’s Office. The BTA aims to establish a framework for reducing trade barriers and enhancing economic cooperation between the two nations.
2. Tariff Adjustments: To demonstrate goodwill and foster a conducive environment for trade talks, India has proposed lowering tariffs on select U.S. agricultural products and is considering reductions on liquefied natural gas (LNG) imports. These measures address specific U.S. concerns and pave the way for broader trade agreements (MoneyControl).
3. Diversification of Trade Partnerships: Recognizing the risks of over-reliance on any single market, India actively seeks to diversify its trade relationships. Notably, China has expressed a willingness to import more Indian products, presenting an opportunity to offset potential losses from decreased U.S. market access. Strengthening ties with alternative trading partners can help mitigate the impact of U.S. tariffs (Reuters). 
4. Economic Impact Assessment and Policy Formulation: Indian authorities are conducting thorough assessments to understand the potential financial impact of the U.S. tariffs. This includes analyzing affected sectors, evaluating the implications for the Indian rupee, and formulating policies to support industries that may be adversely impacted. The rupee, which had seen a 3% gain against the U.S. dollar after a five-month losing streak, is projected to decline, potentially reaching 87.80 per dollar by March 2026 (Reuters).

Potential Scenarios and India’s Preparedness

Indian officials have outlined several scenarios to anticipate the possible outcomes of the U.S. tariffs:

• Product-Specific Tariffs: If the U.S. imposes tariffs targeting specific products, countries like China, Mexico, Canada, and the EU might be more affected, potentially making Indian exports more competitive in those segments. For instance, if steel and aluminum tariffs increase by 15%, India’s current steel export volume of 6.7 million metric tons to the U.S. (valued at $4.3 billion) could shift towards higher European and ASEAN demand.
• Sector-Specific Measures: Tariffs affecting entire sectors, such as pharmaceuticals or textiles, would increase costs globally, impacting all players, including India, by reducing profit margins and altering competitive dynamics. The Indian pharmaceutical sector, which exports $7 billion worth of generic drugs to the U.S. annually, could see a significant hit if tariffs increase by 10-12%.
• Country-Specific Tariffs: The direct impact could be severe if the U.S. implements tariffs specifically targeting India. India exported $78 billion worth of goods to the U.S. in 2024. A 5% across-the-board tariff would immediately add nearly $4 billion in additional costs for Indian exporters, forcing them to either absorb losses or increase prices, potentially reducing demand.
• Secondary Tariffs: Indirect effects, such as tariffs on other countries that disrupt global supply chains, could have cascading impacts on India’s economy. If China faces a 20% tariff on electronics, Indian semiconductor firms, which rely on Chinese inputs for manufacturing, could face increased costs and supply chain disruptions.

Collaborative Efforts and International Relations

India’s approach also involves active participation in international forums to advocate for fair trade practices and seek collective responses to protectionist measures. Some of the key collaborative efforts include:

• WTO Dispute Resolution: India, along with the EU, Canada, and Japan, has initiated discussions at the World Trade Organization (WTO) to challenge the legality of the U.S. tariffs under global trade rules. If the WTO rules against the U.S., it could open the door for retaliatory actions or exemptions.
• Regional Economic Partnerships: India is accelerating its engagement with trade blocs such as ASEAN, the European Union, and the BRICS nations. India’s recent Free Trade Agreement (FTA) negotiations with the UK and Australia have gained momentum, ensuring market diversification. Bilateral trade between India and ASEAN, which stood at $110 billion in 2023, is expected to increase by 20% as India redirects exports.
• Strengthening Domestic Manufacturing: To reduce reliance on imports and enhance self-sufficiency, India has intensified the implementation of the Production-Linked Incentive (PLI) schemes, offering $26 billion in incentives across sectors like electronics, automobiles, and renewable energy.

Conclusion

As the U.S. implements its reciprocal tariffs, India’s multifaceted strategy—encompassing diplomatic engagement, economic diversification, policy adjustments, and international collaboration—reflects a proactive and balanced approach to navigating the complexities of global trade dynamics. By carefully assessing potential impacts and exploring diverse avenues to mitigate risks, India seeks to protect its economic interests while fostering an environment conducive to sustainable growth and international cooperation.

Disclaimer Note: The securities quoted, if any, are for illustration only and are not recommendatory. This article is for education purposes only and shall not be considered as a recommendation or investment advice by Equentis – Research & Ranking. We will not be liable for any losses that may occur. Investments in the securities market are subject to market risks. Read all the related documents carefully before investing. Registration granted by SEBI, membership of BASL & the certification from NISM in no way guarantee the performance of the intermediary or provide any assurance of returns to investors.

Though the market started with a slight drop in the primary indices, a few stocks saw a jump in share prices owing to different announcements, including equity conversions (Vodafone Idea) and contract deals (Hindustan Aeronautics Ltd.).

One such highlight of the initial market hours is ITC’s acquisition of Aditya Birla Real Estate’s pulp & paper arm, Century Pulp and Paper. How will this affect the companies, and what was the strategy for doing so? Let’s understand it in detail. 

Overview of Century Pulp and Paper

Category	Details
Established	1,984.00
Location	Lalkuan, Uttarakhand
Total Capacity	~5 lakh metric tonnes per annum
Manpower	6,000+ employees
Trees Planted	105 lakh (as of Sept 2024)

Established in 1984, Century Pulp & Paper (CPP) is a leading player in the paper industry, manufacturing paper, board, tissue, and pulp products. It operates one of India’s largest single-location integrated manufacturing facilities, located in Lalkuan, Uttarakhand, near the foothills of the Himalayas. CPP has a strong presence in domestic and export markets, with a network of service centers and sales offices across India. The company’s product offerings include 

• Writing & Printing Paper
• Copier Paper (70-85 GSM)
• Tissue Paper 
• Paperboard (Prima Plus & Omega Plus Boards)
• Rayon Grade Pulp
• Century Green Pulp (Produced from bagasse)

Acquisition Details:

ITC Limited has announced the acquisition of Century Pulp & Paper (CPP) from Aditya Birla Real Estate for Rs.3,498 crore through a slump sale transaction. Under this structure, ITC will take over CPP’s entire business – including assets, contracts, and employees – as a single entity without assigning individual values to specific assets or liabilities. This approach allows for a streamlined transfer and aligns with ITC’s rapidly expanding Paperboards and Specialty Papers Business strategy. 

The deal, disclosed in a stock exchange filing on 1st April 2025, is expected to close within six months, subject to regulatory approvals, including from the Competition Commission of India (CCI). Here’s how it affects both ITC Limited and Aditya Birla Real Estate:

Outcome Of The Deal For ITC Limited

1. Revenue Increase:

In FY24, ITC’s paperboards, paper, and packaging segment contributed Rs.8,344 crore to its Rs.69,446.20 crore total revenue. 

With CPP generating Rs.3,375 crore in revenue and Rs.500 crore in EBITDA in FY24, these figures will immediately be reflected in ITC’s financials post-acquisition. Since CPP is already profitable, its revenue will directly boost ITC’s earnings, increasing ITC’s Earnings Per Share (EPS) from the first year.

2. Production Capacity:

The deal is also poised to increase ITC’s total paper production capacity by 60%, from 8 lakh MT per annum to 12.8 lakh MT per annum, positioning it strongly in a market where demand for paper and paperboards grows at 6-7% annually.

3. Operational Edge:

Additionally, CPP’s location in Uttarakhand offers ITC an operational edge, providing efficient customer servicing, proximity to raw materials, and a hedge against operational risks by diversifying its production footprint.

ITC expects to leverage synergies from the acquisition, targeting a 30-40% increase in EBITDA per tonne and improved Return on Capital Employed (RoCE) over the medium term.

Outcome Of The Deal For ABRE

The divestment is part of a broader strategic shift for Aditya Birla Real Estate. Formerly known as Century Textiles Limited, the company rebranded itself as ABRE in September 2024 to reflect its sharpened focus on real estate. The sale of its pulp and paper business will allow it further to pursue growth opportunities in its core real estate business. 

The divestment will also free up capital from a non-core segment. It can then be channeled into high-growth areas such as real estate, paints, and jewelry retailing, where it has made significant capital investments. The slump sale structure ensures a clean exit from the paper business while unlocking shareholder value. 

Changes In Share Price Of ITC and ABRE:

Following ITC’s announcement, the company’s share price slightly increased. On Tuesday, the stock rose by 0.11%, reaching Rs.410.2 per share on the National Stock Exchange (NSE) at 9:24 am. Despite this uptick, ITC’s share price has fallen by 0.18% over the past five trading days. However, over the past month, the stock has gained 3.22%, reflecting some positive momentum in the market ahead of the deal’s completion and the expected acquisition benefits. 

As for Aditya Birla Real Estate’s share price saw a 3% increase, reflecting a positive market reaction to the divestment of its pulp and paper business.

Takeaway For Investors

The acquisition of Century Pulp and Paper by ITC will immediately impact its revenue and earnings, with a notable increase in paper production capacity. This development adds scale to ITC’s paper business and positions it for further growth.

For Aditya Birla Real Estate, selling its pulp and paper business allows the company to concentrate on its real estate operations, freeing up capital for reinvestment. Overall, ITC’s financials will reflect the added capacity and revenue, while Aditya Birla Real Estate will focus on its core sector moving forward.

Bottomline:

The acquisition of Century Pulp & Paper (CPP) by ITC marks a strategic move that will significantly bolster ITC’s Paperboards and Specialty Papers Business. ITC positioned itself for more substantial growth in an expanding market. ABRE is now ready to focus on its core real estate business, freeing up capital for further investments in high-growth areas.
However, as investors, whether to invest in these stocks or stay invested if you are already a shareholder is a decision to be made after thoroughly analyzing the effects of the deal on share price, the market scenario, and other external factors.

Disclaimer Note: The securities quoted, if any, are for illustration only and are not recommendatory. This article is for education purposes only and shall not be considered as a recommendation or investment advice by Equentis – Research & Ranking. We will not be liable for any losses that may occur. Investments in the securities market are subject to market risks. Read all the related documents carefully before investing. Registration granted by SEBI, membership of BASL & the certification from NISM in no way guarantee the performance of the intermediary or provide any assurance of returns to investors.

Stocks from the Anil Dhirubhai Ambani Group (ADAG) made a sharp upward move today, catching the attention of investors across Dalal Street. While benchmark indices like the Sensex and Nifty saw a pullback, Reliance Power jumped 11% intraday, Reliance Infrastructure surged 10% yesterday, and Reliance Capital climbed 2%, continuing a strong rally from earlier this week.

So, what’s driving this sudden surge in Anil Ambani’s legacy companies?

The Catalyst: Reliance Capital Acquisition

The key trigger was the successful acquisition of Reliance Capital by IndusInd International Holdings Ltd (IIHL) for ₹9,650 crore. This milestone comes after a three-year resolution process, significantly boosting investor confidence in the broader ADAG group. (Source: livemint)

According to Sugandha Sachdeva, Founder of SS WealthStreet, “The official takeover by IIHL, coupled with their first board meeting, has acted as a confidence booster. It signals a more stable, growth-oriented future for the group’s companies. This optimism is clearly reflected in the sharp price action we’re seeing today.”

Stock Performance Snapshot

Let’s take a closer look at how individual ADAG stocks are performing:

Reliance Power (RPower)

• 11% up intraday
• 13.35% up over the past month
• 12% down YTD
• 43% up in the last one year
• 203% return over two years – a true multi-bagger

RPower has the largest power generation portfolio under development in India’s private sector. The stock has been quietly building momentum, and today’s rally may reinforce bullish sentiment among long-term investors. (Source: livemint)

Reliance Infrastructure (RInfra)

• 10% up yesterday
• 14% up in one month
• 21% down YTD
• 134% up in the last three years

As a major shareholder in RPower, RInfra is also benefiting from the positive sentiment. The company has been focusing on deleveraging and improving operational efficiency, which seems to be resonating with the market. (Source: livemint)

Broader Market Context

Interestingly, this rally came on a day when the broader markets were under pressure:

• Sensex dropped 728 points to 77,288.50
• Nifty 50 fell 181.80 points, closing at 23,486.85
• Profit booking in banking and IT stocks weighed heavily ahead of monthly derivatives expiry

Despite this, ADAG stocks defied the trend, suggesting that the rally was backed by more than just market momentum. In fact, it signals a shift in investor perception around Anil Ambani’s business group. (Source: livemint)

What Does This Mean for Investors?

The strong rebound in ADAG stocks serves as a reminder of how quickly sentiment can change, especially when corporate restructuring and debt resolutions come into play.

While today’s rally is a positive signal, it’s also worth approaching with measured optimism. These stocks have a volatile history, and sustainable performance will depend on continued governance improvements, business clarity, and financial discipline.

If the group continues to deliver on these fronts, it may mark the start of a longer-term turnaround story.

Final Thoughts

Today’s gains in Reliance Power, RInfra, and Reliance Capital reflect more than just numbers; they represent a renewed vote of confidence in Anil Ambani’s ability to turn things around.

It’s too early to call this a full-fledged comeback, but the momentum is undeniable. And for investors watching the Indian infrastructure and power sectors closely, ADAG stocks are again part of the conversation.

Disclaimer Note: The securities quoted, if any, are for illustration only and are not recommendatory. This article is for education purposes only and shall not be considered as a recommendation or investment advice by Equentis – Research & Ranking. We will not be liable for any losses that may occur. Investments in the securities market are subject to market risks. Read all the related documents carefully before investing. Registration granted by SEBI, membership of BASL & the certification from NISM in no way guarantee the performance of the intermediary or provide any assurance of returns to investors.

FAQs