The Asian stock market is experiencing a strong rebound in initial public offerings (IPOs). With economic recovery and previously delayed demand now coming into play, investor interest in new listings is intensifying. This week, 20 companies from the Asia-Pacific region are set to go public, aiming to raise as much as $8.3 billion.
According to Bloomberg, this marks the largest weekly volume since April 2022 as companies accelerate fundraising efforts ahead of the U.S. election. The surge features IPOs from key markets like China, India, and Japan, underscoring the region’s revival in stock offerings. Source: moneycontrol
Global Scenario of IPOs
According to a recent report by GlobalData, a data analytics firm based in London, 822 Initial Public Offerings (IPOs) were projected to raise $65 billion in the first eight months of calendar year 2024 (CY24) up to August. This marks a 17.4 percent increase compared to 2023 when 1,564 listings in the same timeframe aimed to gather $55.4 billion through this method.
High-profile companies from key sectors like technology, finance, and consumer goods are preparing to go public, creating a buzz among investors. The renewed interest in IPOs signals optimism about the region’s economic future, especially in major financial hubs like Hong Kong and Singapore.
Key Factors Driving the Surge in IPOs:
Economic Recovery: As the Asian economies recover from the effects of the pandemic, companies are looking to raise capital through public listings to fuel expansion and innovation.
Improved Market Conditions: Favorable stock market conditions and investor sentiment have contributed to the rise in IPO activity, with investors eager to participate in growth stories.
Delayed Demand: Many companies had delayed their IPOs during the economic uncertainty, and now, with more stability, they are pushing forward with their listing plans.
5 Big Listings Helping Boost Asian IPO Volumes
Listing Date
Company
Maximum IPO Size
Listing Venue
Description
October 22, 2024
Hyundai Motor India
$3.3 Billion
India
Korean Carmaker Hyundai’s India Unit
October 23, 2024
China Resources Beverage Holdings
$649.2 Million
Hong kong
Chinese Bottled Water Company
October 23, 2024
Tokyo Metro
$2.3 Billion
Japan
Subway Operator in Tokyo
October 24, 2024
Horizon Robotics
$695.8 Million
Hong Kong
Chinese Provider of Software & Hardware used in Autonomous Driving Systems
Before most Asian markets opened on Monday, futures prices presented a mixed outlook. While contracts for major indexes showed gains, futures linked to Hong Kong’s Hang Seng Index indicated a slight decline.
Hyundai Motors: The stakes are high in India, with Hyundai Motor India Ltd.’s $3.3 billion IPO, the largest in the country’s history, set for its trading debut on Tuesday. The offering was oversubscribed by more than twice on the final day, though it saw limited interest from smaller investors.
With Hyundai’s IPO proceeds, Indian IPOs have raised over $12 billion this year, surpassing the totals of the last two years but still falling short of the record $17.8 billion raised in 2021, according to Bloomberg data. Upcoming debuts include Swiggy Ltd., a food delivery company, and the renewable energy division of state-run power producer NTPC Ltd.
China Resources Beverage: As reported by sources, the company is raising about $649 million and closed its order books earlier than expected due to strong demand.
Horizon Robotics’ IPO: The company’s IPO, which is worth up to $696 million, has attracted major investors like Alibaba Group and Baidu Inc., who have committed to holding their shares for at least six months.
Tokyo Metro Co: The Japanese company plans to launch its $2.3 billion listing on October 23. This IPO will be the largest in the country since 2018 and arrives during a challenging time for Japanese markets. The yen has recently fallen below 150 per dollar, and the recent appointment of a new prime minister has sparked speculation regarding future policies.
Rigaku Holdings Corp: This Japanese X-ray technology firm will conclude the week with its shares debuting after completing a deal worth approximately $750 million. The company’s stock will begin trading on Friday. Source: moneycontrol
Challenges and Risks
Despite the optimism, the surge in IPO activity is not without risks. Companies must navigate a complex regulatory environment, and there is always the potential for market volatility. Additionally, the success of these IPOs will depend on investor appetite and broader economic conditions.
Potential Challenges:
Market Volatility: Global market fluctuations could impact investor confidence and demand for new listings.
Regulatory Hurdles: Each country has its own regulations for public listings, which companies must comply with to avoid delays or complications.
Valuation Pressures: With many IPOs hitting the market simultaneously, valuations may be subject to increased scrutiny, and investors may become more selective.
Comparison to 2022
This week’s expected volume of IPOs is reminiscent of the boom seen in 2022. However, there are some key differences between the two periods:
Economic Environment: In 2022, the global economy was still grappling with the effects of the pandemic, leading to a cautious approach by investors. In contrast, 2024 sees a more stable economic environment, with companies eager to capitalize on growth opportunities.
Sector Diversity: While 2022 saw a concentration of IPOs in the tech sector, this year’s offerings are more diverse, with significant activity in fintech, consumer goods, and healthcare.
Valuation Trends: Valuations in 2022 were more conservative, as investors remained wary of overpaying in an uncertain market. In 2024, companies are achieving higher valuations due to improved market sentiment and stronger financial performances.
What This Means for Investors
This wave of IPOs represents a significant opportunity for investors. IPOs often provide early access to companies with high growth potential, allowing investors to participate in their success from the beginning. However, it’s crucial for investors to carefully evaluate each offering, considering factors such as the company’s financial health, growth prospects, and market conditions.
Tips for Investors:
Conduct Thorough Research: Before investing in any IPO, it’s essential to thoroughly research the company’s financials, business model, and competitive landscape.
Consider Long-Term Potential: IPOs can be volatile in the short term, so it’s important to consider the company’s long-term growth potential rather than just short-term gains.
Diversify Investments: While IPOs can offer high returns, they also come with risks. Diversifying your portfolio can help mitigate potential losses.
Conclusion
The blockbuster week for Asian IPOs is set to be the biggest since 2022, signaling a strong recovery in the region’s markets. With a diverse range of companies from various sectors preparing to go public, investors have a unique opportunity to participate in the growth of Asia’s dynamic economy. However, it’s essential to remain cautious and do thorough research before jumping into the IPO frenzy, as market volatility and other risks still exist.
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 performance of the intermediary or provide any assurance of returns to investors.
FAQs
What is driving the surge in Asian IPOs?
Several factors are contributing to the current boom in Asian IPOs. First, the region’s economies are experiencing robust growth fueled by increased consumer spending, rising exports, and positive government measures. This economic vitality is creating a favorable environment for businesses to expand and seek capital through IPOs. Second, the overall stock market sentiment is positive, with major indices reaching new highs. This rising market confidence encourages companies to go public and attract investor interest.
Which sectors are leading the IPO boom?
The Asian IPO market is witnessing diverse sectors participating in the boom. However, some sectors are particularly prominent, driven by their strong growth potential and investor demand. Technology companies, including e-commerce platforms, fintech firms, and artificial intelligence startups, are leading the charge. The healthcare sector, focusing on pharmaceutical companies, biotechnology firms, and medical device manufacturers, is also experiencing significant IPO activity.
What are the risks and challenges associated with investing in Asian IPOs?
While the Asian IPO market presents exciting opportunities, it’s essential to be aware of the potential risks and challenges involved. One of the key risks is market volatility. The stock market can be unpredictable, and IPOs are often subject to more significant price fluctuations than established companies. Additionally, the regulatory environment in some Asian countries may be less mature or subject to changes, which can impact the investment landscape. Currency fluctuations can also pose risks for foreign investors, as changes in exchange rates can affect the value of their investments.
Have you noticed the recent surge in Central Public Sector Enterprises (CPSEs)? It’s no coincidence that the Nifty CPSE Index, a barometer of these state-owned entities, has been outperforming the broader stock market. With the government’s focus on strengthening its public sector and the growing energy demand, these stocks have become a hot commodity among investors.
Let’s examine the factors driving this rally more closely and explore whether there’s steam left in the CPSE stocks.
A Year of Stellar Returns for the Nifty CPSE Index
Over the past year, the Nifty CPSE Index has surged by a remarkable 80%, far outpacing the Nifty 50’s 27% gains. This impressive performance is largely attributed to the robust growth in the power sector, which constitutes nearly half of the CPSE Index.
Despite concerns about the power sector’s near-term prospects, the government’s ambitious National Electric Plan, involving a massive investment of 9.15 lakh crore, has ignited investor enthusiasm. This plan aims to bolster India’s power infrastructure and enhance energy security.
The Energy Surge
Since the March 2020 lows, when the Nifty CPSE Index was at around 1,100, it has skyrocketed to over 7,600, delivering a staggering 575% return. In comparison, the Nifty 50 has gained 250% during the same period. This surge in CPSE valuations reflects growing confidence among investors in these state-owned enterprises, which were once overlooked and undervalued.
The Nifty CPSE Index comprises 11 stocks, with the power sector dominating at 46.48%. The oil and gas sector follows closely with 36.11%, capital goods at 15.72%, and construction contributes 1.7%. Among the major contributors, NTPC leads with a weightage of 20.37%, followed by Power Grid Corporation of India at 19.44%. Other key players include Oil and Natural Gas Corporation (ONGC) at 15.86%, Coal India at 15.9%, and Bharat Electronics Limited (BEL) at 14.01%.
A closer examination reveals that the energy sector has been the backbone of the Nifty CPSE Index’s growth. The Nifty Energy Index has posted a robust 360% return since March 2020, a performance mirrored by the CPSE Index, which has 82.59% exposure to the energy sector. Energy stocks have been instrumental in driving the index’s rise.
Key factors behind the energy sector’s strong performance
1. Increased demand for electricity: As India’s economy expands, the demand for power has risen, benefiting power-generation companies like NTPC and Power Grid Corporation.
2. Government support: The Indian government has provided incentives and investments in renewable energy and infrastructure, supporting the sector’s growth.
3. Rising fuel prices: Higher global fuel prices have boosted the profitability of upstream companies such as ONGC and Oil India, included in the Nifty CPSE Index.
The Road Ahead for Nifty CPSE Index
Despite its strong performance, many question whether the Nifty CPSE Index can sustain its current rally. From 2014 to late 2020, the CPSE Index underperformed compared to the Nifty 50. During that period, while the Nifty 50 posted a return of 110%, the CPSE Index lagged. However, this trend reversed in late 2020 as investor sentiment shifted towards public sector enterprises, leading the CPSE Index to outperform the Nifty 50 consistently.
Recently, the CPSE Index has seen a 10% correction from its all-time high of 7,660, finding support at the 6,600 level. Technical analysis of the CPSE Index relative to the Nifty 50 suggests the uptrend remains intact. Should the ratio chart between the two indices fall into negative territory, it could signal a potential reversal in the CPSE Index’s outperformance. However, current indicators suggest this scenario is less likely.
Energy Sector’s Critical Role
Given the significant weight of the energy sector in the Nifty CPSE Index, the performance of the Nifty Energy Index is a crucial element to watch. The Nifty Energy Index consists of key CPSEs, including NTPC and Power Grid Corporation, which account for 26.29% of the total weightage. These companies are also the largest contributors to the Nifty CPSE Index.
In addition, ONGC and Coal India contribute another 16.44% to the Nifty Energy Index. Together, NTPC, Power Grid, ONGC, and Coal India are pivotal in driving the Nifty Energy Index and the broader Nifty CPSE Index.
From a technical perspective, the point-and-figure chart for the Nifty Energy Index remains bullish over the long term, with an open anchor column target of 62,000, indicating significant upside potential. A key support level for the Nifty Energy Index is located at 37,000. If the index breaks below this level, it could signal a bearish trend. However, as long as it stays above 37,000, the outlook remains positive, and the target of 62,000 remains achievable. Source: The Economic Times
7 Key Takeaways from Nifty CPSE Index
1. Nifty CPSE Index’s Strong Performance: The index has surged 575% since March 2020, well ahead of the Nifty 50’s 250% gain during the same period.
2. Energy Sector Dominance: The energy sector constitutes 82.59% of the CPSE Index, with power companies like NTPC and Power Grid leading the charge.
3. Top Contributors: NTPC (20.37%), Power Grid (19.44%), ONGC (15.86%), Coal India (15.9%), and BEL (14.01%) are the largest holdings in the index.
4. Government’s Role: Government support, including the ₹9.15 lakh crore investment under the National Electric Plan, has bolstered the sector’s growth.
5. Energy Sector Growth: The Nifty Energy Index has risen 360% since March 2020, driving much of the CPSE Index’s performance.
6. Recent Correction: The CPSE Index has corrected 10% from its peak of 7,660 but remains supported at 6,600, indicating the uptrend is intact.
7. Future Outlook: With technical indicators pointing toward continued bullish momentum, the energy sector, particularly NTPC, Power Grid, ONGC, and Coal India, remains a key driver of future growth.
Conclusion
The Nifty CPSE Index, driven primarily by power and energy stocks, has been on a strong upward trajectory. While there may be some short-term fluctuations, the long-term outlook remains bullish, especially with the continued support from the government and rising energy demand. Investors should keep a close watch on key technical levels and market trends to gauge the sustainability of this rally.
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 performance of the intermediary or provide any assurance of returns to investors.
This week, the global stock market traded on a mixed note, with investors largely optimistic and looking for the next big trigger to push higher. The central bank continues to unveil more support for the struggling economy in China as data indicated growing deflationary pressures. In Europe, favorable inflation data prompted countries to cut rates further to boost growth.
Crude oil dropped by more than 6.5% last week as fears of Israel striking Iran’s petroleum infrastructure subsided. Gold, on the other hand, continued to soar higher, gaining 2% during the week.
Let’s look at how the major stock market indices did this week
Encouraging economic indicators in the third quarter has boosted investors’ confidence in the US market. The value of US retail sales increased 0.4% in September, up from 0.1% in August. However, industrial production dropped 0.3% in September, against 0.3% growth in August. The Federal Reserve has attributed this decline to Hurricanes and strikes at the Boeing factories.
Let’s check how the top US indices performed during the week.
Dow Jones
Dow Jones struggled to gain ground on Friday, with a significant pullback in American Express stock causing the index to close flat. Weekly, the index closed 0.96% higher.
S&P 500
Strength in utility and real estate stock pushed the broader S&P 500 index 0.40% higher on Friday, helping the index to close the week 0.85% higher and post a sixth consecutive weekly gain.
Nasdaq
Netflix’s better-than-expected quarterly performance, which resulted in the stock rising 11%, pushed the Nasdaq up 0.63% on Friday. On a week-on-week basis, the index closed higher by 0.80%.
World Stock Market Index European Markets
The European Central Bank cut key deposit rates to 3.25%, marking the first back-to-back reduction in 13 years. The European Commission’s statistics office reported that annual inflation was 1.7% in September, down from its initial estimate of 1.8% and well below the ECB’s target of 2%.
Now, let’s look at how different economies performed during the week.
FTSE 100
Slower-than-expected UK inflation and a decline in wage growth paved the way for the Bank of England (BoE) to lower borrowing costs. In Friday’s session, FTSE 100 traded slightly weak and was down by 0.32%. It increased by 0.46% on a week-on-week basis.
CAC 40
Gains in consumer goods, technology, and essential materials drove France’s primary stock market index, the CAC 40, higher this week. The index rose 0.39% on Friday and 0.46% on the week.
DAX
The rate cut boosted the German stock market to close at a record high at the end of the week, gaining 0.38% on Friday. On a week-on-week basis, the index was 1.46%.
World Stock Market Index Asian Markets
Strength in the Japanese and Chinese indices helped the other major Asian indices trade with a positive bias this week. Due to improved sentiment, the positive momentum is likely to continue.
Look at how the major stock market index performed during the week.
Nifty 50
The Nifty 50 was volatile during the week due to mixed quarterly earnings reports. On Friday, the index closed 0.46% higher, but on a week-on-week basis, it was down by 0.71% higher.
Nikkei 225
Factors like easing inflation and reduced chances of a rate hike again this year have kept Japan’s primary stock market index, Nikkei 225, less volatile. On Friday, the index was up by 0.18%, but on a week-on-week basis, it lost 1.58%. However, the weakening of the Yen has been a cause of concern for policymakers.
Straits Times
Singapore’s primary stock market index, Straits Times, traded with a positive bias. During Friday’s session, it was up by 0.41%, and on a week-on-week basis, it closed higher by 1.68%.
Hang Seng
Chinese stocks rebounded in Friday’s session as the world’s second-largest economy posted better-than-expected economic growth. However, the concern about deflation remains. On Friday, the Hang Seng index was up by 3.48%, helping to recover some of the weekly losses. Week-on-week, the index was down by 1.37%.
Taiwan Weighted
Taiwan’s primary stock market index, the Taiwan Weighted Index, traded higher on Friday, up 1.85%. On a week-on-week basis, the index rose 2.56%.
KOSPI
Profit booking on Friday’s session caused the South Korean stock market to close 0.60% lower, pulling the index down on a weekly basis. It was down 0.25%.
SET Composite
Thai stocks traded weak during Friday’s session, closing down 0.35%. However, the index rose 1.34% weekly, maintaining positive momentum for another week.
Jakarta Composite
The Indonesian stock market index, Jakarta Composite, traded flat on Friday, slightly up by 0.32%. On a weekly basis, the index was up 3.18%.
Shanghai Composite
China’s third-quarter GDP increased by 4.6% compared to last year, exceeding expectations and allowing the stock market to continue its bullish performance. On Friday, the Shanghai Composite rose 2.83%, reversing its weekly losses. It increased by 1.36% over the previous week.
Wrapping Up
As we wrap up the week, global stock markets showed mixed trends, with optimism rising as investors watch for the next big trigger. Key economic updates from China and Europe are shaping the outlook, while crude oil has sharply dropped, providing comfort to emerging economies. The U.S. markets remained strong, while Europe showed resilience with rate cuts fueling growth. Asian markets, too, witnessed some volatility but showed positive momentum.
The focus will be on how global economic factors, especially in China and Europe, continue to impact markets and investor sentiment.
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 performance of the intermediary or provide any assurance of returns to investors.
The market started the week with an indecisive direction and a volatile NIFTY. The indices started on a strong front with the background of positive global cues but later slipped under the pressure of extreme volatility. Consequently, the NIFTY ended the day at 24,741.50, and the SENSEX closed the day at 81,151.27. Despite the dips, a few of the stocks held onto the green side and made it to the list of the top performers for the day.
As the market opens at 9:00 AM today, we present 20 stocks to consider adding to your watchlist. Here are ten stocks with the highest trading volume and ten stocks based on their performance at yesterday’s market close.
Top 10 stock performers from today’s NIFTY 500
Based on the closing figures of 21st October 2024:
Disclaimer Note: The securities quoted, if any, are for illustration only and are not recommendatory. Past performance is not indicative of future results.
Understanding the Top 5 stocks of the list:
Amber Enterprises India Ltd.:
Amber Enterprises India Ltd, founded in 1956, holds 23.6% of India’s Room Air Conditioner (RAC) market and leads as a top OEM/ODM with a 29% share. It offers products like RACs, heat exchangers, and fans. Recently, it ventured into washing machines by partnering with Resojet Private Limited and acquired Ascent Circuits for PCB production. In June 2024, Amber’s revenue jumped 41%, fueled by strong RAC demand during summer. It also increased its stakes in ILJIN and Ever to 90.2%. For FY2024, revenue reached Rs.6,729 crore, while profits stood at Rs.139 crore. The Return on Capital Employed (ROCE) was 12.61%, and Profit After Tax (PAT) came to Rs.75 crore, with a 3.1% margin. (Source: Annual Report)
Tejas Networks Limited:
Tejas Networks Ltd, founded in 2000, designs and manufactures wireline and wireless networking products. The company emphasizes technology, innovation, and R&D. Its products support telecom providers, utilities, governments, and defense networks in over 75 countries. Now part of Panatone Finvest Limited, a Tata Sons subsidiary, Tejas had a strong order book of Rs.8,221 crore by the end of FY2024. In June 2024, net sales reached Rs.1,562.77 crore, a significant 731.75% jump from Rs.188 crore in June 2023. The net profit for Q1 FY2025 stood at Rs.77 crore, down from Rs.147 crore in March 2024, but a notable improvement from the Rs.26 crore loss in June 2023. (Source: Annual Report)
Tata Chemicals Limited:
Incorporated in 1939, Tata Chemicals Ltd (TCL) is part of the Tata Group and produces basic chemistry and specialty products. It is the third-largest global soda ash producer, with over two-thirds of its production being cost-effective natural soda ash. TCL is also the sixth-largest sodium bicarbonate maker worldwide and a key player in agri-services and crop protection in India through Rallis India. As of September 2024, TCL ranked 16th among India’s Top 50 Most Sustainable Companies by Business World and held the top spot in the chemicals sector. The company has filed 219 patents, with 147 granted. For the same quarter, TCL reported revenue of Rs.3999 crore, a 6% increase from June 2024, driven by higher soda ash volumes and prices. However, PAT stood at Rs.267 crore, lower than Rs.393 crore in September 2023 but higher than the previous quarter. (Source: Annual Report)
Indigo Paints Limited:
Indigo Paints began in 2000, focusing on decorative paints. Its range includes exterior and interior emulsions, putties, primers, and wood coatings, all sold under the ‘Indigo’ brand. The company is based in Pune, with plants in Jodhpur, Kochi, and Pudukkottai. In FY24, Indigo Paints expanded into construction and waterproofing by acquiring Apple Chemie India. Following the acquisition, Apple Chemie’s revenue grew by 50% in Q4 FY2024. For FY2024, Indigo Paints reported revenue of Rs.1,320.3 crore, a 21.87% increase from FY2023, and a net profit margin of 11.27%, amounting to Rs.147.32 crore. Additionally, it earned a net profit of Rs.26.65 crore for the quarter ending June 2024. (Source: Annual Report)
CRISIL Ltd.:
CRISIL Ltd is a global analytics firm offering ratings, research, risk, and policy advisory services. It’s India’s top rating agency, with over 35,000 large and medium-scale entities rated. It also provides high-end research for major banks and corporations. CRISIL operates in three segments: ratings (28% of revenue, 51% of profits), research (65% of revenue), and advisory (7% of revenue). Following SEBI regulation changes, it separated its credit ratings business into a subsidiary, CRISIL Ratings Ltd. In H1FY24, CRISIL acquired renewable energy consulting firm Bridge To India Energy Pvt. Ltd. For the year ending December 2023, CRISIL’s income from operations stood at Rs.3140 crore, with an 11% CAGR growth. The profit after tax was Rs.658 crore, and the net worth per share reached Rs.299.4. (Source: Annual Report)
Top 10 stock performers from today’s NIFTY 500
Based on the trade volume of 21st October 2024 vs the past week’s average:
Sno
Symbol
Volume
Volume Change %
1
TEJASNET
13350379
2004.87 %
2
INDIAMART
5190211
1354.27 %
3
TATACONSUM
11484610
1311.33 %
4
RBLBANK
63857447
808.73 %
5
AMBER
4610465
794.26 %
6
DALBHARAT
1093603
723.98 %
7
BBTC
709318
660.12 %
8
UCOBANK
19914386
603.33 %
9
JINDALSAW
6327071
484.6 %
10
INDIGOPNTS
1106689
411.89 %
(source: NSE on 21st October 2024)
Disclaimer Note: The securities quoted, if any, are for illustration only and are not recommendatory. Past performance is not indicative of future results.
Understanding the stocks of the list:
IndiaMART Ltd.:
IndiaMART, India’s first and largest B2B digital marketplace, is reshaping the B2B landscape. It helps Small and Medium Businesses (SMEs) adapt quickly to the digital era, making the online marketplace accessible and engaging. With nearly 60% market share in the online B2B classifieds space, IndiaMART leads the industry. It boasts ~7.9 million supplier storefronts, ~2.14 lakh paying subscribers, ~108 million live product listings, ~24 million unique business inquiries, and 252 million repeat users. There are ~194 million registered buyers, with a repeat rate of 53%, and CRM handles ~136 million replies and callbacks. For the quarter ending September 2024, 37% of suppliers were also buyers. Revenue from operations reached Rs.348 crore, up 18% year-on-year. The company’s net profit stood at Rs.135 crore, with a 33% margin and 95% growth. Total collections were Rs.356 crore, marking a 6% increase. (Source: Annual Report)
Tata Consumer Products Ltd.:
Tata Consumer Products Ltd., a key company in the Tata Group, is a leader in India’s food and beverages sector and globally. It’s the world’s second-largest tea company, with a solid market presence in South Asia, Canada, the UK, North America, Australia, Europe, the Middle East, and Africa. The company houses several well-known brands. Tata Salt is India’s largest salt brand, while Tata Tea is the second-largest tea brand in the country. Tetley leads in Canada and ranks third in the UK. Himalayan is the top natural mineral water brand in India, Eight O’Clock is the fourth largest coffee brand in the USA, and Tata Sampann is recognized for its pulses, spices, and staples. Among the top 10 FMCG companies in India, Tata Consumer Products saw a slight decline in market share for tea and salt in FY24. Revenue stood at Rs.15,200 crore, with 7% international growth. For Q2FY25, revenue hit Rs.4,214 crore, showing a 13% increase, and net profit was Rs.367 crore with an 8.7% margin. (Source: Annual Report)
RBL Bank Limited:
RBL Bank, founded in 1943, is one of India’s top private-sector banks. It provides specialized services in Corporate Banking, Commercial Banking, Branch & Business Banking, Retail Assets, and Treasury & Financial Markets Operations. The bank has a growing presence across the country, serving over 16.06 million customers through 550 branches, 1,332 business correspondent branches (including 297 banking outlets), and 406 ATMs in 28 states and Union Territories. In the first half of FY25, ending September 2024, RBL Bank’s financials showed positive growth. Net Interest Income rose by 14% year-on-year, reaching Rs.3,315 crore, while other income increased by 25% to Rs.1,733 crore. The bank’s net profit went up by 2%, amounting to Rs.594 crore. Advances saw a 15% rise, totaling Rs.87,882 crore, and overall deposits grew by 20% to Rs.1,07,959 crore. Additionally, the bank’s CASA ratio stood at 33.6%, and the capital adequacy ratio improved to 15.9%. (Source: Annual Report)
Dalmia Bharat Limited:
Dalmia Bharat is a cement manufacturing and selling company that started in 1939. It is the fourth largest cement manufacturer in India by installed capacity. Founded by Late Shri Jaidayal Dalmia, the Dalmia Bharat Group is one of the fastest-growing and most profitable groups in the country. The company has a strong market position in the attractive East, North-East, and South regions of India. In FY2024, Dalmia Bharat achieved a 9% five-year CAGR growth in revenue and a 6% growth in EBITDA. Its net profit saw a 20% five-year CAGR growth. The company reported ₹14,691 crore in revenue from operations, an increase of 8.4%. Its EBITDA reached ₹2,639 crore, growing by 13.4%. Sales volume hit 28.8 million tonnes, up by 11.8%. However, the profit after tax (PAT) was ₹853 crore, a decrease of 20.9%. (Source: Annual Report)
Bombay Burmah Trading Corporation Limited:
Bombay Burmah Trading Corporation Limited (BBTCL) was founded in 1863 and is a flagship company of the Wadia Group. Initially, it focused on the teak business to meet domestic demand. In 1913, BBTCL expanded into tea plantations in South India. Today, it operates in many sectors, including tea, coffee, biscuits, dairy, auto-electric products, white goods, and healthcare products. With over 150 years of history, BBTCL remains a key player in the Wadia Group, one of India’s oldest conglomerates, which has a diverse presence in consumer goods, healthcare, and real estate. For FY2024, BBTCL reported a total revenue of Rs.382.75 crore and a net loss of Rs.588 crore. By June 2024, its total income rose to Rs.4403.30 crore, with a net profit of Rs.471.62 crore. (Source: Annual Report)
The indices failed to hold the gains on Monday and slipped into the red zone. However, with the positive global cues, it is even more difficult to say whether the trend is likely to continue during the week. It is thus suggested to maintain a cautious stance towards the investments and analyze every market aspect thoroughly before closing a deal.
Top 10 stock performers 18th October from NIFTY 500
Based on the closing figures of 18th October 2024:
Disclaimer Note: The securities quoted, if any, are for illustration only and are not recommendatory. Past performance is not indicative of future results.
Understanding the Top 5 stocks of the list:
Motilal Oswal Financial Services Limited:
Motilal Oswal Financial Services Ltd., a mid-cap firm founded in 1987, serves 1.6 million customers in 550+ cities and towns through 2,500+ locations. It offers various services, including wealth management, broking, asset management, private equity, and investment banking.
By FY2024, the company reported a net profit of Rs.2,446 crore, a significant 161.5% rise from FY2023’s Rs.935 crore. Over the past five years, it achieved a profit growth of 52.7% CAGR. Additionally, it managed assets worth Rs.3.8 lakh crore in FY2024. (Source: Annual Report)
Mazagon Dock Shipbuilders Limited:
Mazagon Dock Shipbuilders Limited is one of India’s oldest shipyards, with roots going back to 1774. It became a Private Limited Company in 1934 and was taken over by the government in 1960. Since then, it has emerged as the country’s top warship builder, crafting vessels for the Navy and offshore structures. By 2024, Mazagon Dock had delivered 802 vessels, including 28 warships, 7 submarines, and various commercial ships and platforms. In FY24, it secured orders worth over Rs.6,000 crore, earned Rs.9,466.58 crore in revenue, and posted a net profit of Rs.1,936.97 crore. The company maintained a 24.5% dividend payout and saw a 5-year CAGR profit growth of 29.5%. (Source: Annual Report)
Axis Bank Limited:
Axis Bank, founded in December 1993, is India’s third-largest private sector bank and the fourth-largest credit card issuer, with a 19.8% market share in FY24. It operates 5,577 branches and has international offices in Dubai, Singapore, Abu Dhabi, Sharjah, and Dhaka. As of September 2024, the bank reported a 3.99% Net Interest Margin, a 16.61% Capital Adequacy Ratio, and a 0.34% Net NPA. Profit After Tax increased 18% YOY to Rs.6,918 crore. The CASA ratio is 40.6%, advances rose 11% YOY to Rs.9,99,979 crore, and total deposits grew 14% YOY to Rs.10,86,744 crore. The loan book expanded by 12% YOY, with retail loans accounting for 71% of the Rs.5,98,715 crore total. (Source: Annual Report)
Finolex Industries Limited:
Finolex Industries Ltd. (FIL), founded in 1981, is a major player in the PVC industry. It offers durable PVC-U pipes and fittings for agriculture, construction, and industrial needs. FIL operates in two segments: PVC Resin and PVC Pipes & Fittings. It’s one of the top competitors in India’s domestic PVC market and has the country’s second-largest capacity for PVC pipes. What makes FIL unique is its vertical integration, as it produces its own PVC resin—the main raw material for pipes. In the quarter ending June 2024, FIL’s income was Rs.1,195.39 crore, down 6.55% from the previous quarter. Despite this, net profit jumped to Rs.500.23 crore from Rs.161 crore in the previous quarter. (Source: Annual Report)
Anand Rathi Wealth Limited:
Anand Rathi Wealth Ltd, founded on March 22, 1995, is a leading name in India’s wealth management scene. It’s one of the top three non-bank mutual fund distributors, offering various financial products. By March 2024, the firm’s 10-year strategy helped 155 clients with assets over Rs.10 crores achieve a 14.6% annual return, with 46% less risk compared to the NIFTY 50 Index. In FY2024, it reported Rs.752 crores in revenue, marking a 35% increase from last year. The AUM grew 52% to Rs.59,351 crores, while PAT rose 34% to Rs.226 crores. About 52.4% of clients hold Rs.5-50 crores in assets, with many crossing the Rs.50 crore mark. Additionally, 23.6% of the AUM comes from clients with over Rs.50 crores in assets, and around 24% of clients have portfolios below Rs.5 crores. (Source: Annual Report)
Top 10 stock performers 18th October from NIFTY 500
Based on the trade volume of 18th October 2024 vs the past one week’s average:
Sno
Symbol
Volume
Volume Change %
1
MANAPPURAM
80768797
1792.25 %
2
DOMS
897509
1200.61 %
3
MGL
5199556
928.26 %
4
IGL
18330579
856.82 %
5
TEJASNET
2622941
774.0 %
6
CEATLTD
619580
583.93 %
7
MTARTECH
701371
428.94 %
8
POLYCAB
1967383
399.82 %
9
ELECON
3580082
355.92 %
10
WIPRO
37324728
332.05 %
Disclaimer Note: The securities quoted, if any, are for illustration only and are not recommendatory. Past performance is not indicative of future results.
Understanding the stocks of the list:
Manappuram Finance Ltd.:
Manappuram Finance, a non-banking finance company (NBFC), offers a variety of services, like gold loans and money exchange. It is a Systemically Important non-deposit-taking NBFC (NBFC-ND) and the second-largest gold loan lender in India. The company is a leader in process innovation for gold loans, securely managing 59 metric tons of household gold jewelry for 2.5 million active customers.
With a network of over 5,000 branches, Manappuram’s assets under management (AUM) reached Rs.42,100 crore in FY2024, marking an 18.7% growth. Its profit after tax (PAT) rose by 46.5% to Rs.2,197.5 crore, and revenue increased by 32.1% to Rs.8,848 crore. The gold loan portfolio stands at Rs.20,700 crore, with an average gold AUM per branch of Rs.5.86 crore. (Source: Annual Report)
DOMS Industries Ltd.:
DOMS Industries Limited, founded in 2006, specializes in stationery and art supplies. It’s India’s second-largest player in the branded stationery and art market, with a 29% share in pencils and 30% in math instrument boxes in FY23. DOMS operates in over 40 countries and expanded into the Back-to-School segment by acquiring a 51% stake in SKIDO Industries in FY24. As of June 2024, it offered 7 product categories and had a network of 4,750+ distributors, exporting to more than 50 countries. In the June 2024 quarter, operating revenue grew 17.3% year-on-year to Rs.445 crore, while PAT rose 49.5% to Rs.54.3 crore, with a 12.2% PAT margin. (Source: Annual Report)
Mahanagar Gas Limited:
Mahanagar Gas Ltd is India’s top city gas distributor, supplying CNG for vehicles and PNG to homes, businesses, and industries in Mumbai, Thane, and Raigad. Its extensive pipeline network stretches 6,968 km, serving around 12.5 lakh households, with plans to reach 16 lakh. It also caters to 4,200 commercial and industrial clients. In FY2024, Mahanagar Gas launched a joint venture with Baidyanath LNG, creating India’s first LNG retail outlet. Through its subsidiary, Unison Enviro Pvt Ltd, it connected 3,30,330 homes to PNG, the highest for any city gas distributor. Additionally, the company invested in 3EV Industries, which makes electric three-wheelers. For FY2024, Mahanagar Gas reported a net profit of Rs.1,289 crore, a net worth of Rs.5,143 crore, and total revenue of Rs.6,862 crore. (Source: Annual Report)
Indraprastha Gas Limited:
Indraprastha Gas Limited (IGL) was established in 1998 and specializes in city gas distribution in Delhi and surrounding areas like Noida, Ghaziabad, and Gurugram. It is the only distributor of CNG and PNG in Delhi, with CNG accounting for 75% of its sales volume. IGL is a joint venture among GAIL, BPCL, and the Delhi Government, which owns a 5% equity stake. The company serves over 25.6 lakh residential connections and 10,000 industrial customers, operating 819 CNG stations. By FY2024, IGL expanded to 32 districts across 11 Geographical Areas, fulfilling more than 21% of the sector’s demand. It also recorded its highest profit after tax at Rs.1,748 crore, with daily sales averaging 8.43 million cubic meters and total sales reaching Rs.14,363.23 crore. (Source: Annual Report)
Tejas Networks Limited:
Tejas Networks Ltd, founded in 2000, specializes in designing and manufacturing wireline and wireless networking products. The company focuses on technology, innovation, and R&D. Its products serve telecom service providers, utilities, governments, and defense networks across over 75 countries. Tejas is now part of Panatone Finvest Limited, a Tata Sons subsidiary. By the end of FY2024, it had an impressive order book of Rs.8,221 crore. As of June 2024, Tejas reported net sales of Rs.1,562.77 crore, a significant increase of 731.75% compared to Rs.188 crore in June 2023. The company’s net profit for Q1 of FY2025 was Rs.77 crore, down from Rs.147 crore in March 2024, but an improvement from a loss of Rs.26 crore in June 2023. (Source: Annual Report)
The market was headed towards recovery, led by banking and metal stocks. However, the trigger that started the losing streak, persistent sell-offs by the FIIs, has yet to settle. It is thus suggested to keep a vigilant stand regarding any of your investment decisions.
Top 10 stock performers today from NIFTY 500
Based on the closing figures of 17th October 2024:
Disclaimer Note: The securities quoted, if any, are for illustration only and are not recommendatory. Past performance is not indicative of future results.
Understanding the Top 5 stocks of the list:
Mphasis Ltd.:
Mphasis, a global IT solutions provider, focuses on cloud and cognitive services, using advanced technology to help businesses transform worldwide. In June 2006, Electronic Data Systems acquired Mphasis, which later became part of Hewlett-Packard after HP bought EDS. In September 2016, Blackstone Group took over HP’s stake and continues to support Mphasis. In FY2024, Mphasis expanded its investments to Riyadh and nearshore models in Taiwan, Mexico, Poland, and Costa Rica. The company launched the Mphasis Gen AI Foundry with AWS and introduced DeepInsights™ Doc AI. It also formed partnerships with Kore.ai, WorkFusion, and CoreStack. For FY2024, Mphasis reported net revenue of Rs.13,278.5 crore, a 42% year-on-year increase, along with a 73% growth in large deal wins. The company achieved a net profit of Rs.1,684.35 crore. (Source: Annual Report)
Karur Vysya Bank Limited:
Karur Vysya Bank provides a range of banking and financial services, covering retail banking, corporate banking, and treasury operations. It serves over 80 lakh customers through 838 branches across India. As of FY2024, the bank achieved a total business of Rs.1,63,536 crore, reflecting a 16% growth, and recorded a net profit of Rs.1,605 crore with a net interest margin of 4.19%. The capital adequacy ratio stands at 16.67%, supported by total deposits of Rs.89,113 crore and total advances amounting to Rs.74,423 crore. The bank maintains a low net NPA of 0.40%, while its CASA balances total Rs.27,085 crore. Karur Vysya Bank continues to strengthen its presence across the country with a solid financial performance. (Source: Annual Report)
HEG Limited:
HEG Ltd is one of India’s leading graphite electrode makers and exporters. It runs the world’s largest integrated graphite electrode plant, with an annual capacity of 80,000 tons. Part of the LNJ Bhilwara Group, HEG is also active in IT, power, and textiles. It makes various grades of electrodes like UHP, SHP, and HP, and has been exporting 65-70% of its production to 35 countries for over 20 years. In June 2024, HEG’s revenue fell to Rs.571.46 crore from Rs.671.43 crore a year ago, while net profit dropped to Rs.23.04 crore from Rs.139.08 crore. However, its stock price still showed a 44.60% return over the past year, as of 17th October 2024. (Source: Annual Report)
Central Bank of India Ltd.:
Founded in 1911, the Central Bank of India is one of the country’s oldest banks, operating through 4,500 branches. It serves across segments like Treasury Operations, Corporate/Wholesale Banking, Retail Banking, and other banking services. The Treasury segment covers government and other securities, money market, and Forex operations. In FY2023-24, the bank expanded its co-lending network, adding 12 new partnerships with top NBFCs and HFCs, bringing the total to 26 alliances. For FY2024, the bank saw a net profit jump to Rs.2,549 crores, marking a 61.13% year-on-year growth. The total business grew to Rs.6.36 lakh crores. The Net NPA reduced from 1.77% to 1.23%. Total deposits reached Rs.385,011 crore, and advances hit Rs.251,745 crore, a 15.60% increase. CASA deposits were Rs.191,969 crore. (Source: Annual Report)
Latent View Analytics Limited:
Latent View Analytics Ltd offers various analytics services, including consulting, business insights, predictive analytics, data engineering, and digital solutions. It serves blue-chip clients across industries like Technology, BFSI, CPG & Retail, Industrials, and more. Notably, it’s the first analytics company listed on a stock exchange. As of the June 2024 quarter, Latent View’s clientele includes over 30 Fortune 500 companies. The company reported a revenue of Rs.178.9 crore, showing a 21.1% year-on-year growth. Its Profit After Tax (PAT) stood at Rs.38.9 crore, with a PAT margin of 19.8%. (Source: Annual Report)
Top 10 stock performers 17th October from NIFTY 500
Based on the trade volume of 17th October 2024 vs the past one week’s average:
Sno
Symbol
Volume
Volume Change %
1
CRISIL
981961
1963.33 %
2
CHENNPETRO
5661062
1379.16 %
3
BAJAJ-AUTO
3668895
1086.72 %
4
LATENTVIEW
1641774
863.29 %
5
CENTRALBK
23788282
849.61 %
6
KARURVYSYA
14404896
789.1 %
7
MPHASIS
5357498
704.43 %
8
BLUEDART
111737
683.1 %
9
KPIL
1238095
465.37 %
10
TVSMOTOR
2812222
365.99 %
(source: NSE on 17th October 2024)
Disclaimer Note: The securities quoted, if any, are for illustration only and are not recommendatory. Past performance is not indicative of future results.
Understanding the stocks of the list:
CRISIL Ltd.:
CRISIL Ltd is a global analytics company that provides ratings, research, risk, and policy advisory services. It’s India’s top rating agency, having rated over 35,000 large and medium-scale entities, and is a leading provider of high-end research for major banks and corporations. The company operates in three segments: ratings, which account for 28% of revenue and are the most profitable, contributing 51% of total profits; research, which makes up 65% of revenue; and advisory, with a 7% share. Following SEBI regulation changes, CRISIL separated its credit ratings business into a wholly owned subsidiary, CRISIL Ratings Ltd. In H1FY24, it acquired Bridge To India Energy Pvt. Ltd., a renewable energy consulting firm. As of the year ending December 2023, CRISIL’s income from operations was Rs.3140 crore, reflecting an 11% CAGR growth, with a profit after tax of Rs.658 crore and a net worth per share of Rs.299.4. (Source: Annual Report)
Chennai Petroleum Corporation Ltd.:
CPCL is a major player in the petroleum industry, offering a wide range of products. It enjoys Miniratna I status and partners with IOCL to market LPG, Motor Spirit, ATF, and Diesel, catering to diverse needs. It also provides specialty products like Paraffin Wax, MTO, and petrochemical feedstocks, which are crucial for industries. CPCL runs a Wax Plant with a 30,000 MT annual capacity. In FY2024, it reported a net worth of Rs.8,593 crore, up by 37%. The debt-to-equity ratio is 0.32, with a profit after tax (PAT) of Rs.2,711 crore and a turnover of Rs.79,207 crore. The company paid a 30.21% dividend and achieved a return on capital employed (ROCE) of 32%. (Source: Annual Report)
Bajaj Auto Limited:
Bajaj Auto, the flagship of the Bajaj Group, is known for manufacturing two-wheelers and three-wheelers. Based in Pune, India, it exports to 79 countries across regions like Latin America and Southeast Asia. The company holds a 48% stake in KTM, a brand specializing in sports and super sports bikes, up from 14% in 2007. Bajaj is the second-largest player in India’s motorcycle segment by volume and the world’s largest producer of three-wheelers. It’s also India’s top exporter of two-wheelers and three-wheelers. In FY2024, Bajaj achieved record revenue of Rs.44,685 crores, marking a 23% year-on-year growth. Profit after tax reached Rs.7,479 crores, up by 33%. Additionally, exports contribute 32% to its revenue. (Source: Annual Report)
Blue Dart Express Limited:
Blue Dart Express Limited, founded in 1983, focuses on time-sensitive deliveries. It offers door-to-door service through a robust ground and air transportation network. As South Asia’s leading courier and air express distribution company, Blue Dart reported a revenue of Rs.5,267.83 crore in FY2024, with a profit after tax (PAT) of Rs.288.64 crore and a net worth of Rs.1,438.63 crore. Its return on capital employed (ROCE) was 26.6%. In the June 2024 quarter, net sales reached Rs.1,342.71 crore, marking an 8.5% increase from Rs.1,237.55 crore in June 2023. However, net profit fell by 12.83%, dropping from Rs.61.28 crore in June 2023 to Rs.53.42 crore in June 2024. (Source: Annual Report)
Kalpataru Power Transmission Limited:
Kalpataru Power Transmission Ltd, founded in 1981, is a top global EPC company focused on power transmission, distribution, oil and gas pipelines, railways, and biomass power generation. As part of the Kalpataru Group, it operates in 73 countries and manages over 250 projects across 30+ nations. Recently, the company expanded into Sweden and Brazil by acquiring Linjemontage and Fasttel. Its key subsidiaries include Linjemontage, Fasttel, and Kalpataru Power Chile SpA. With a record-high order book of Rs.58,415 crores, reflecting a 27% growth, Kalpataru secured a US$ 900 million oil and gas pipeline order from Aramco in FY24 and entered underground tunneling. The company also achieved its highest-ever revenue of Rs.19,626 crores, with stable net debt at Rs.2,591 crores and a PAT of Rs.516 crores. (Source: Annual Report)
Despite the positive global cues, the domestic market faced considerable losses. This downturn was primarily due to widespread selloffs in several sectors, especially in auto, realty, consumer durables, and finance. While many investors tend to look for an opportunity window, it is suggested to continue with a cautious approach when making investment decisions in an indecisive market like this one.
Top 10 stock performers 16 October from NIFTY 500
Based on the closing figures of 16th October 2024:
Disclaimer Note: The securities quoted, if any, are for illustration only and are not recommendatory. Past performance is not indicative of future results.
Understanding the Top 5 stocks of the list:
UTI Asset Management Company Limited:
UTI, India’s oldest mutual fund, was the first to bring mutual funds to the country. It pioneered equity mutual funds and children’s plans. Registered with SEBI under the SEBI (Mutual Funds) Regulations, 1996, UTI holds a 5.37% market share in the mutual fund industry and 27.4% in the National Pension System. It has a strong presence with 193 touchpoints nationwide. In 2023-24, UTI’s Assets Under Management grew to Rs.18.48 lakh crore, while domestic mutual fund QAAUM reached Rs.2.91 lakh crore. The company also reported a 75% rise in consolidated profit after tax, totaling Rs.766 crore. (Source: Annual Report)
RailTel Corporation of India Limited:
RailTel, a “Navratna” Central Public Sector Enterprise, is one of India’s top ICT providers and a major telecom infrastructure company. It has a Pan-India optic fiber network, covering over 61,000 route kilometers and 6,108 railway stations. RailTel also has 21,000+ km of citywide access across the country. Founded on 26th September 2000, RailTel posted a total income of Rs.2,622 crores and a PAT of Rs.246 crores for FY2024, showing a 31% growth in both turnover and profit compared to last year. In the June 2024 quarter, it reported a total income of Rs.482.73 crores, a 32.47% drop from the March 2024 quarter but a 25.36% rise from June 2023. RailTel’s net profit for this quarter was Rs.38.39 crores. The company also maintained a 39.2% dividend payout and stayed nearly debt-free in FY2024. (Source: Annual Report)
Vardhman Textiles Limited:
Vardhman Textiles Limited is a top Indian textile manufacturer known for yarn, fabrics, acrylic fiber, garments, and special steel. The company produces 240,000 metric tons of yarn and 220 million meters of woven fabric each year. With subsidiaries like Vardhman Acrylics Limited and VTL Investments Limited, it operates in 75 countries, ranking among India’s top three woven fabric manufacturers. However, since 2022, net profits have dipped. In FY2024, the PAT stood at Rs.608 crore with a PAT margin of 6.31%. The company’s net worth increased to Rs.8805 crore, though revenue dropped to Rs.9299 crore from Rs.9841 crore in FY2023. Despite these declines, Vardhman’s stock performed well, delivering a 3-year return of 19.14% and a 1-year return of 31.06% as of 16th October 2024 with a P/E ratio of 19.10. (Source: Annual Report)
Amber Enterprises India Ltd.:
Amber Enterprises India Ltd, founded in 1956, controls 23.6% of India’s Room Air Conditioner (RAC) market and leads as a top OEM/ODM with 29% market share. It offers products like RACs, heat exchangers, and fans. Recently, Amber expanded into washing machines through a partnership with Resojet Private Limited and acquired Ascent Circuits for PCB production. In June 2024, revenue surged 41%, driven by high RAC demand during the summer. Amber also raised its stakes in ILJIN and Ever to 90.2%. For FY2024, revenue reached Rs.6,729 crore, with a profit of Rs.139 crore. The Return on Capital Employed (ROCE) stood at 12.61%, and the Profit After Tax (PAT) was Rs.75 crore, with a 3.1% margin. (Source: Annual Report)
Action Construction Equipment Limited:
Action Construction Equipment Ltd is India’s most diversified CE manufacturer, operating in infrastructure, construction, manufacturing, logistics, and agriculture. It makes and markets hydraulic mobile cranes, mobile tower cranes, material handling equipment like forklifts, road construction machines such as backhoe loaders and compactors, and agricultural tools like tractors and harvesters. It has the fastest service and support network across 100+ locations in India and is the world’s largest pick-and-carry crane manufacturer, with a presence in over 37 countries. Founded in 1995, the company went public in 2006. In FY2024, total income rose by 35.86% to Rs.2,990.9 crore, and profit after tax jumped 90% to Rs.327.64 crore compared to FY23. Revenues from cranes grew by 37.75% to Rs.2,104.59 crore, construction equipment by 54.82% to Rs.386.21 crore, material handling by 8.60% to Rs.183.69 crore, and agri equipment by 12.06% to Rs.237.05 crore. Net profit margin stands at 11.25%. (Source: Annual Report)
Top 10 stock performers 16 October from NIFTY 500
Based on the trade volume of 16th October 2024 vs the past one week’s average:
Sno
Symbol
Volume
Volume Change %
1
NUVOCO
4326394
2851.06 %
2
RAILTEL
29665034
1161.68 %
3
GRINDWELL
280100
827.91 %
4
DCMSHRIRAM
383595
791.14 %
5
KEI
2539992
757.65 %
6
UTIAMC
2603305
663.24 %
7
BLS
12421109
635.45 %
8
ACE
1434786
598.27 %
9
INDIGOPNTS
765535
595.7 %
10
AMBUJACEM
20190855
566.99 %
(source: NSE on 16th October 2024)
Disclaimer Note: The securities quoted, if any, are for illustration only and are not recommendatory. Past performance is not indicative of future results.
Understanding the stocks of the list:
Nuvoco Vistas Corporation Ltd.:
Nuvoco Vista Corporation Ltd (NVCL), part of the Nirma Group, is known for its diverse offerings, from chemicals to real estate. As India’s 5th largest cement group, it has a 25 MMTPA capacity and leads the East Indian market. Nuvoco operates in three segments: Cement, Ready-Mix Concrete (RMX), and Modern Building Materials (MBM), with a presence in 85 locations, including 11 cement plants and 58 RMX plants. It has played a role in key projects like Bharatmala Pariyojana, the Mumbai-Ahmedabad bullet train, and the Western Dedicated Freight Corridor. In FY2024, Nuvoco achieved its highest-ever EBITDA of Rs.1,657 crores, alongside revenue of Rs.10,733 crores and a PAT of Rs.147 crores (1.37% margin). Its ROCE was 5.49%. (Source: Annual Report)
Grindwell Norton Ltd.:
Grindwell Norton Ltd. started manufacturing grinding wheels in India and has grown into a major player in abrasives, ceramics, and performance plastics. In 1990, it became part of the Saint-Gobain Group, a global leader in sustainable construction, with Saint-Gobain currently holding a 51.66% stake in the company. Grindwell Norton also has a subsidiary in Bhutan, Saint-Gobain Ceramic Materials Bhutan Private Limited. For FY2024, the company reported revenue of Rs.2686.77 crore, a PAT of Rs.383.96 crore, and a net profit margin of 19.21%. It maintains a strong dividend payout ratio of 49% and is almost debt-free. Over the past five years, Grindwell Norton has delivered impressive profit growth, with an 18.6% CAGR, while consistently maintaining a healthy dividend payout of 46.1%. (Source: Annual Report)
DCM Shriram Limited:
DCM Shriram, part of the DCM group founded by Sir Shri Ram, operates in diverse sectors. Its agri-rural business covers urea, sugar, ethanol, and hybrid seeds, while its Chloro-Vinyl business focuses on caustic soda, chlorine, and PVC products. It also manages power and cement operations. In addition, Fenesta Building Systems, its value-added business, specializes in UPVC and aluminum windows and doors. As of FY2024, DCM Shriram maintained a 22.9% dividend payout. The company’s total revenue stood at Rs.10,922 crore, compared to Rs.11,547 crore the previous year, with a net worth of Rs.6,476.3 crore. Net profit for FY2023-24 was Rs.447 crore, a 51% drop from the previous year’s Rs.911 crore. However, in the June 2024 quarter, net profit surged to Rs.100.30 crore, up 77.27% from Rs.56.58 crore in the same period last year. (Source: Annual Report)
KEI Industries Limited:
KEI started in 1968 as a partnership, initially focusing on making rubber cables for house wiring. Today, KEI Industries Ltd manufactures a range of wires and cables (W&C) like EHV, HT, and LT cables, serving both Indian and international markets. It also offers Engineering, Procurement, and Construction (EPC) services, catering to retail and institutional clients. With over 30,000 channel partners, KEI’s products reach customers in more than 55 countries worldwide. The company is a market leader in India and a preferred supplier for private and public sector clients globally. In FY 2023-24, KEI achieved a turnover of Rs.8,104.08 Cr., up from Rs.6,908.17 Cr. in FY 2022-23, marking a growth of about 17.31%. The net profit for FY 2023-24 stood at Rs.581.05 Cr., compared to Rs.477.38 Cr. in the previous year, reflecting a 21.72% increase. (Source: Annual Report)
BLS International Services Limited:
BLS International Services Ltd. is a leader in visa, passport, consular, and citizen services. Business Today Magazine has recognized it as one of “India’s Most Valuable Companies.” It partners with 46 client governments, including diplomatic missions, embassies, and consulates, and operates in 66 countries with over 50,000 centers globally. In the June 2024 quarter, the company completed the iDATA acquisition, expanding its market share in Europe. It also signed a Share Purchase Agreement to acquire a 55% controlling interest in Aadifidelis Solutions Pvt. Ltd. For Q1 FY25, the company’s revenue grew by 28.5% year-over-year to Rs.492.7 crore, up from Rs.383.5 crore in Q1 FY24. Its profit after tax rose to Rs.120.8 crore, a 70.1% increase from Rs. 71.0 crore in Q1 FY24, with a PAT margin of 24.5%. The visa and consular business revenue increased by 35.9% year-over-year to Rs.414.1 crore. (Source: Annual Report)
Weak global cues and disappointing September quarter earnings are dampening market sentiment. Despite this, the medium- to long-term outlook remains positive. Foreign investors have been selling off domestic shares this month, causing some local traders to feel uneasy. Many others, however, have taken a cautious approach as volatility continues.
Top 10 stock performers 15 October from NIFTY 500
Based on the closing figures of 15th October 2024:
Disclaimer Note: The securities quoted, if any, are for illustration only and are not recommendatory. Past performance is not indicative of future results.
Understanding the Top 5 stocks of the list:
Angel One Limited:
Angel One Ltd is a financial services company providing stock, commodity, and currency broking, margin trading, depository services, mutual fund distribution, and lending as an NBFC. It also acts as a corporate insurance agent. As of June 2024, Angel One was among the top two for incremental SIPs in Q1 2025, with a client funding book of Rs.3,409.4 crore. The company reported a total net income of Rs.1,110 crore for the quarter, marking a 4.9% rise. However, profit after tax (PAT) declined by 13.9%, settling at Rs.290 crore. The client base also expanded by 11.2%, reaching 2.47 crore. (Source: Annual Report)
Vijaya Diagnostic Centre Limited:
Vijaya Diagnostic Centre Ltd. is South India’s largest diagnostic chain, offering services like nuclear medicine, radiology, lab tests, and health check-ups. It was one of the region’s first to provide PET-CT scans. With 146 centers in 20 cities and NABL-certified labs, it caters to over 400 companies with Corporate Wellness solutions. In FY2024, it acquired PH Diagnostic Centre in Pune, making it a subsidiary. For FY2023-24, Vijaya Diagnostic reported a 21.6% ROCE and a net profit of Rs.114.47 crore. In Q1 FY2024, its revenue reached Rs.156.2 crore, showing a 29.1% year-on-year growth, with a PAT of Rs.31.3 crore and a PAT margin of 20.1%. (Source: Annual Report)
Motilal Oswal Financial Services Limited:
Motilal Oswal Financial Services Ltd., founded in 1987, is a mid-cap firm serving 1.6 million customers across 550+ cities and towns through 2,500+ locations. It offers wealth management, retail and institutional broking, asset management, commodity broking, private equity, investment banking, and more. By FY2024, the company recorded a net profit of Rs.2,446 crore, marking a 161.5% increase from FY2023’s Rs.935 crore. It also achieved a 5-year profit growth of 52.7% CAGR. Additionally, the firm reported assets under management (AUM) of Rs.3.8 lakh crore in FY2024. (Source: Annual Report)
Network18 Media & Investments Limited:
Network18 Media & Investments Limited is India’s leading media and entertainment group, spanning TV, digital content, films, e-commerce, and print. It operates through subsidiaries like TV18 Broadcast Limited and Viacom 18 Media, with stakes in digital content and commerce. It also holds shares in publications like Forbes India and Overdrive. In FY2024, Network18 earned Rs.10,825.66 crore in revenue but faced a loss of Rs.388.96 crore. The company’s net worth was Rs.6,553.2 crore, with a debt-to-equity ratio of 1.10. In the first quarter of FY2025, its net sales reached Rs.3,140.92 crore, showing a 3.03% dip from the June 2023 quarter. (Source: Annual Report)
Five Star Business Finance Limited:
Five Star Business Finance Limited, founded in 1984, is a fast-growing NBFC-ND-SI that provides secured business loans to micro-entrepreneurs and self-employed people in South India. It saw a 65% CAGR from FY17 to FY21. Recently, it expanded by adding 27 branches, taking the total to 547, up from 386 as of June 30, 2023. For the June 2024 quarter, the company reported a gross NPA of 1.41% and a PAT of Rs.251.6 crore, with a loan portfolio worth Rs.10,343.9 crore. Its net interest margin is 16.72%, and the return on assets is 8.23%. The assets under management grew 36% year-on-year to Rs.10,340 crore, while the net worth reached Rs.5,450 crore. (Source: Annual Report)
Top 10 stock performers 15 October from NIFTY 500
Based on the trade volume of 15th October 2024 vs the past week’s average:
Sno
Symbol
Volume
Volume Change %
1
AETHER
3333785
4736.61 %
2
FIVESTAR
10235273
1212.97 %
3
ANGELONE
20907651
1122.5 %
4
SUNTECK
2544418
1077.26 %
5
MOTILALOFS
15761777
1007.1 %
6
NETWORK18
34108809
879.2 %
7
MASTEK
925789
724.16 %
8
AEGISLOG
1351134
447.96 %
9
PVRINOX
1696730
431.85 %
10
FINEORG
77745
361.58 %
(source: NSE on 15th October 2024)
Disclaimer Note: The securities quoted, if any, are for illustration only and are not recommendatory. Past performance is not indicative of future results.
Understanding the stocks of the list:
Aether Industries Ltd.:
Aether Industries Limited, founded in 2013 in Surat, Gujarat, specializes in specialty chemicals. It provides advanced intermediates to pharmaceuticals, agrochemicals, and oil and gas sectors. The company grew at a 28.74% CAGR from FY 2018 to FY 2024. It’s also active in CRAMS (Contract Research and Manufacturing Services), supported by its R&D and Pilot Plant facilities. Aether joined the UN Global Compact Network India and earned a Silver EcoVadis Medal. It went public with an IPO in June 2022. For FY 2024, the total income was Rs.637.38 crore, with a net profit of Rs.82.49 crore, down 37% from FY 2023. A spike in stock trade volume occurred on 15th October 2024 after announcing a significant contract manufacturing deal with Chemoxy International Ltd, a SEQENS group subsidiary. (Source: Annual Report)
Sunteck Reality Ltd.:
Sunteck Realty Limited, based in Mumbai, develops high-end residential and commercial properties across the Mumbai Metropolitan Region (MMR). It’s a leading developer in the Western Suburbs with a 50 million sq ft launch pipeline, and it has expanded to the Eastern Suburbs with 12.1 million sq ft under development. So far, it has delivered 17 projects worth Rs.9,000 crore (US$1.2 billion). As of June 2024, pre-sales rose 30% year-on-year to Rs.502 crore, while collections grew 19% to Rs.342 crore. Sunteck also launched a new project in Dubai’s Burj Khalifa Community, Downtown, with a gross development value of Rs.9,000 crore. Additionally, it partnered with IFC (World Bank Group) and has a net worth of Rs.3,147 crore. (Source: Annual Report)
Mastek Limited:
Mastek, founded in 1982, is a major player in enterprise tech solutions. With nearly 40 years in IT, it has evolved from offering basic IT services to becoming a partner in digital transformation. Mastek provides various services, including application development, support, ERP, cloud migration, business intelligence, agile consulting, and digital commerce. In Q1 FY2025, Mastek launched its icxPro platform in collaboration with NVIDIA, which is a significant milestone in its growth strategy. The company reported revenue of Rs.812.9 crore for Q1 FY2025, reflecting a 9.9% increase compared to last year. However, its profit after tax (PAT) for the quarter was Rs.71.5 crore, a decrease of 2.8% year-over-year, with a return on capital employed (ROCE) of 15.4%. Over the past twelve months, Mastek’s stock has risen by 22.91% as of 15th October 2024. (Source: Annual Report)
Aegis Logistics Limited:
Aegis Logistics, previously Aegis Chemical Industries Ltd., has been around since 1956. It provides logistics solutions for oil, gas, chemicals, and petrochemicals. As a leading player in India’s logistics sector, Aegis runs bulk liquid terminals, LPG terminals, filling plants, pipelines, and LPG stations. In FY2024, it teamed up with Royal Vopak to create Aegis Vopak Terminals Ltd. The company saw its operational profit rise to Rs.993.62 crore from Rs.815.07 crore the previous year. In FY2024, it achieved a net profit margin of 9.54% and a return on net worth of 14.62%. Aegis also declared two interim dividends: 250% at Rs.2.50 per share and 200% at Rs.2 per share during FY 2023-24. (Source: Annual Report)
PVR Inox Limited:
The merger of PVR Ltd. and INOX Leisure Ltd. in 2022-23 was a game changer for the Indian entertainment scene, creating the largest multiplex chain in the country. As of FY2024, the company has already achieved 80-90% of its targeted combined capabilities. It now operates 1,754 screens across 361 cinemas in 113 cities in India and Sri Lanka, with 258 premium and special format screens making up about 15% of its portfolio. Post-merger, the company is moving to a capital-light model and cutting costs. It plans to reduce overall capex in FY’25 by around 25% compared to FY’24 and has partnered with developers for new screen investments. In FY’24, it closed 85 underperforming screens and expects to shut down 70 more in FY’25. In FY2024, the average ticket price rose 10% to Rs.259, while total revenue grew 17% to Rs.6,203.7 crore. The PAT was Rs.114.3 crore, with a PAT margin of 1.8%. (Source: Annual Report)
The short-term trend of Nifty remains choppy, with the market stuck in a broader range of 25,200-24,900 levels. If it makes a decisive move above 25,200, you might see an upside towards 25,500-25,600 levels soon. However, due to weak Q2 results from some major companies and poor global cues, it’s best not to rely too heavily on any predictions. Be cautious with your portfolio decisions while anticipating the announcements of second-quarter results for various companies.
Top 10 stock performers 14 October from NIFTY 500
Based on the closing figures of 14th October 2024:
Disclaimer Note: The securities quoted, if any, are for illustration only and are not recommendatory. Past performance is not indicative of future results.
Understanding the Top 5 stocks of the list:
Aptus Value Housing Finance India Ltd.:
Aptus Value Housing Finance India Ltd focuses on home loans for self-employed and low to middle-income families, mainly in semi-urban and rural areas. It targets first-time homebuyers using self-occupied residential property as collateral. Founded in 2010, Aptus offers housing loans, business loans, quasi-home loans, and insurance support across 267 locations in India. Recently, CARE upgraded its rating to ‘AA-; Positive.’ Aptus has shown strong profitability with a Return on Equity (RoE) of 18.13% and a five-year CAGR of 30% as of June 2024. For the June 2024 quarter, its loan book stood at Rs.9,072 crore, total income at Rs.405 crore, and PAT at Rs.172 crore. The assets under management (AUM) grew 27% year-on-year, with a gross NPA of 1.3%. (Source: Annual Report)
Central Depository Services (India) Ltd:
Central Depository Services Limited (CDSL) plays a vital role in the capital market. It provides services to exchanges, clearing corporations, depository participants (DPs), issuers, and investors. You can hold and trade securities electronically, like equities, bonds, mutual funds, and Treasury Bills. In 2023-24, CDSL celebrated its 25th anniversary and became the first depository to exceed 11.5 crore demat accounts. By the end of FY2024, it reached 11.56 crore investor accounts, boasting a 76% market share. CDSL generated Rs.907 crore in revenue and had a net profit of Rs.420 crore. It collaborated with 580 depository participants and supported 23,060 active companies, offering a record dividend of Rs.22 per share. For the June 2024 quarter, CDSL reported a total income of Rs.286.90 crore, up 7.30% from the previous quarter and 65.02% from June 2023. Its stock saw a growth of 12.92% over three years. (Source: Annual Report)
BSE Limited:
The Bombay Stock Exchange (BSE) is India’s and Asia’s first stock exchange, founded in 1875 on Dalal Street, Mumbai. It got official recognition in 1956 and is famous for its incredible trading speed of just 6 microseconds. In 1986, the BSE launched the S&P BSE SENSEX to monitor market performance. By 2017, it became India’s first listed stock exchange. For FY 2023-24, the BSE reported a remarkable 70% increase in total income, reaching Rs.1617.90 crore. Additionally, net profit soared by 97%, hitting Rs.404.14 crore. (Source: Annual Report)
Federal Bank Limited:
The Federal Bank Limited, originally founded in 1931 as Travancore Federal Bank, is a leading bank in India. It offers retail and corporate banking services, including debit cards and foreign exchange. With 1,504 branches and 2,015 ATMs, it serves around 1.85 crore customers, making it the largest private sector bank in Kerala. As of FY2024, the bank has three associate companies: Federal Operations & Services Limited (100% stake), Ageas Federal Life Insurance Company Limited (26% stake), and Fedbank Financial Services Limited (61.58% stake). This year, it reported its highest-ever profit after tax (PAT) of Rs.3,721 crore, marking a 24% year-on-year growth. The company’s net advances reached Rs.2,09,403 crore, an increase of 20%, while total deposits rose to Rs.2,52,534 crore, which was up 18% year-on-year. The return on equity (ROE) is 14.73%, with a proposed dividend payout ratio of 7.85%. The capital adequacy ratio stands at 16.13%, and the net NPA is at 0.60%. The bank’s assets under management (AUM) grew by 34% to Rs.12,192 crore. (Source: Annual Report)
Raymond Limited:
Raymond Limited has been a key player since 1925, spanning textiles, apparel, real estate, FMCG, and engineering. It operates in over 55 countries, including the USA, Europe, Japan, and the Middle East. With 1,638 stores globally—1,589 in India and 49 abroad—it’s a leading manufacturer of worsted suiting fabric. In June 2023, Raymond demerged its lifestyle business, creating Raymond Lifestyle Limited (RLL). In FY2024, Raymond expanded its reach by acquiring a majority stake of 59.25% in Maini Precision Products Limited (MPPL). The company reported impressive financials, with revenue hitting Rs.9,286 crore for FY2024. In the first quarter ending June 2024, Raymond’s net profit from continuing operations rose by 26.7% to Rs.57.04 crore, up from Rs.45.02 crore in the same quarter last year. Revenue also surged to Rs.937.65 crore, compared to Rs.473.37 crore in June 2023. (Source: Annual Report)
Top 10 stock performers 14 October from NIFTY 500
Based on the trade volume of 14th October 2024 vs the past one week’s average:
Sno
Symbol
Volume
Volume Change %
1
POLYMED
677581
1272.2 %
2
APTUS
18934108
746.49 %
3
JKCEMENT
410555
513.27 %
4
KSB
803920
397.42 %
5
RAYMOND
1402337
393.04 %
6
PGHH
26971
318.81 %
7
PNCINFRA
3253634
316.9 %
8
DMART
4876725
313.28 %
9
CDSL
18199843
282.33 %
10
OBEROIRLTY
3256065
279.87 %
(source: NSE on 14th October 2024)
Disclaimer Note: The securities quoted, if any, are for illustration only and are not recommendatory. Past performance is not indicative of future results.
Understanding the stocks of the list:
Poly Medicure Limited:
Poly Medicure Limited is an Indian manufacturer and exporter of medical devices. It specializes in plastic medical disposables and surgical devices, offering over 130 products in various areas. These include infusion therapy, oncology, anesthesia, respiratory care, urology, gastroenterology, blood management, surgery, wound drainage, dialysis, and veterinary medical devices. As of FY2024, Poly Medicure operates in more than 125 countries. It has been granted over 325 patents. The company reported a revenue of Rs.1,375.79 crore and a profit after tax of Rs.258.25 crore, up from Rs.179.28 crore in FY2023. Its net worth stands at Rs.1,470.05 crore. (Source: Annual Report)
JK Cement Limited:
JK Cement is a leading cement manufacturer in India, established in 1974. As a member of the JK Organisation, it has over 40 years of experience in producing and selling cement and related products. In 1984, it became the first Indian company to set up a dry process White Cement facility, starting with a capacity of 50,000 TPA, which has now grown to 3.05 MnTPA, including a plant in Fujairah, UAE. The company ranks among the top 10 grey cement manufacturers in India and is the fifth-largest in North India and sixth-largest in the central region. As of FY2024, it reported revenues of Rs.10,918 Crores, a 17% increase. Net sales reached Rs.10,563 Crores, up 16%, and PAT was Rs.831 Crores, a 65% growth. The company also invested Rs.1.19 Crores in R&D and declared a dividend of Rs.20 per share. (Source: Annual Report)
KSB Limited:
KSB is a leading supplier of pumps and valves based in Germany, with two companies in India: KSB Limited and MIL Controls Ltd. KSB India is a major manufacturer of pumps, valves, systems, and control valves, with a strong presence across the country through its sales and marketing companies, manufacturing plants, and service operations. Founded in 1960 and headquartered in Pune, KSB India focuses on serving the needs of a growing market. The company has invested in top-notch facilities to produce centrifugal pumps and industrial valves, distributing them throughout the Indian subcontinent. Its plants in Pimpri, Chinchwad, Khandala, Vambori, Coimbatore, and Sinnar showcase outstanding manufacturing practices. KSB India’s infrastructure includes seven manufacturing units, four zonal offices, 14 branch offices, six service stations, over 350 authorized service centers, 22 warehouses, and more than 1,100 dealers. As of June 2024, KSB India reported a total income of Rs.655.5 crore and a net profit of Rs.89.9 crore. (Source: Annual Report)
Procter & Gamble Hygiene and Health Care Limited:
Procter & Gamble Hygiene and Health Care Limited focuses on making and selling well-known packaged fast-moving consumer goods in femcare and healthcare. Its portfolio features leading brands like WHISPER, India’s top feminine hygiene brand. VICKS, the country’s No. 1 healthcare brand, and Old Spice. WHISPER continues to lead the hygiene market. Recently, the company launched Whisper Choice Aloe Vera in the “Comfort & Soft” segment and upgraded its flagship Ultra and Choice products. As of June 2024, PGHH reported a total income of Rs. 939.06 crore and a net profit of Rs.79.67 crore. (Source: Annual Report)
PNC Infratech Limited:
PNC Infratech Limited started as PNC Construction Company Private Limited on August 9, 1999. It became a limited company in 2001 and changed its name in 2007. Today, it is a leader in infrastructure development and management in India. The company provides engineering, procurement, and construction (EPC) services, either on a turnkey or item-rate basis. It manages projects using various models, including DBFOT, OMT, and Hybrid Annuity Mode (HAM). By FY2024, PNC Infratech completed 88 major infrastructure projects, generating revenue of Rs.8,650 crore (up 9%) and a PAT of Rs.909 crore (up 38%), with a margin of 10.5%. Its net worth is Rs.5,185 crore, and it has an order book of Rs.20,400 crore. The company enjoys strong credit ratings of CARE AA+ for long-term debt and CARE A1+ for short-term debt. (Source: Annual Report)
The positive global cues have caused the market to bounce back. However, any investment decision needs to be thought through in detail, keeping the market factors and company trends in mind. A cautious approach is suggested for your portfolio.
Top 10 stock performers 11 October from NIFTY 500
Based on the closing figures of 11th October 2024:
Disclaimer Note: The securities quoted, if any, are for illustration only and are not recommendatory. Past performance is not indicative of future results.
Understanding the Top 5 stocks of the list:
Usha Martin Limited:
Usha Martin Ltd, established in 1960, specializes in manufacturing and selling steel wires, wire ropes, strands, and related machinery. Over the years, it has become a market leader with a broad product range. Its Ranchi plant is one of the largest wire rope factories globally. Usha Martin operates in over 70 countries, supported by 250+ distribution centers and partners. In FY2024, it expanded by creating a new entity in Saudi Arabia to serve the oil, energy, and infrastructure sectors. It also took full ownership of its joint venture in Thailand. The company reported FY2024 revenue of Rs.3,225.2 crore (down 1.3%) and a 21% growth in PAT to Rs.424.1 crore, with an ROCE of 21.9%. (Source: Annual Report)
Bandhan Bank Limited:
Bandhan Bank focuses on serving underbanked markets across India. It started as Bandhan Financial Services Pvt. Ltd (BFSL) in 2006 and became the largest NBFC-MFI by 2014. After getting a banking license from the RBI, it began operations as Bandhan Bank in 2015, taking over BFSL’s microfinance portfolio. Today, Bandhan Bank has a PAN-India presence with 3.35 crore customers, offering various banking products for both micro and general banking. As of FY2024, Bandhan Bank’s total advances stand at Rs.1,24,721 crore, total deposits at Rs.1,35,202 crore, with CASA deposits at Rs.50,151 crore and a CASA ratio of 37.09%. The bank’s net worth is Rs.20,366 crore, PAT Rs.2,230 crore, capital adequacy ratio 18.28%, net interest margin 7.35%, and net NPA at 1.11%. It operates through 4,597 banking units across India. (Source: Annual Report)
Nippon Life India Asset Management Limited:
Nippon Life India Asset Management Limited (NAM India) has been a prominent player in the Indian market since 1995. It manages mutual funds, exchange-traded funds (ETFs), portfolio management services, alternative investment funds, pension funds, and offshore funds. NAM India is promoted by Nippon Life Insurance Company, one of Japan’s leading private life insurers. It operates through 94 branches and a vast network of over 1,01,000 distributors. As of FY2024, the company’s assets under management (AUM) reached Rs.5,23,828 crore, marking a 44% growth from FY2023. It reported a profit after tax (PAT) of Rs.1,107 crore, showing 53% growth. NAM India manages 2.43 crore portfolios with a unique investor base of 1.65 crore and has a nearly 99% dividend payout ratio. (Source: Annual Report)
BSE Limited:
The Bombay Stock Exchange (BSE), founded in 1875 on Dalal Street, Mumbai, is India’s and Asia’s first stock exchange. It became officially recognized in 1956 and is known for its lightning-fast trading speed of 6 microseconds. In 1986, the BSE introduced the S&P BSE SENSEX to track market performance and became India’s first listed stock exchange in 2017. For FY 2023-24, BSE saw a 70% rise in total income, reaching Rs. 1617.90 crore, and a 97% jump in net profit to Rs. 404.14 crore. By 11th October 2024, the BSE SENSEX grew by 22.43% over three years, while NIFTY50 increased by 26.01%. (Source: Annual Report)
Network18 Media & Investments Limited:
Network18 Media & Investments Limited is India’s most diverse media and entertainment group. It operates across TV, digital content, filmed entertainment, film production, e-commerce, print, and more through its subsidiaries, TV18 Broadcast Limited and Viacom 18 Media. It also has stakes in digital content and commerce and is a major shareholder in publications like Forbes India and Overdrive. In FY2024, Network18 reported revenue of Rs.10,825.66 crore, with a loss of Rs.388.96 crore. Its net worth stood at Rs.6,553.2 crore, and its debt-to-equity ratio was 1.10. In the first quarter of FY2025, the company’s net sales were Rs.3,140.92 crore, reflecting a 3.03% decline compared to the June 2023 quarter. (Source: Annual Report)
Top 10 stock performers 11 October from NIFTY 500
Based on the trade volume of 11th October 2024 vs the past one week’s average:
Sno
Symbol
Volume
Volume Change %
1
USHAMART
44645327
5780.3 %
2
BANDHANBNK
129824335
1082.33 %
3
RAJESHEXPO
3032034
917.35 %
4
JUSTDIAL
4245050
704.86 %
5
ANANDRATHI
418090
653.96 %
6
SPARC
2255357
602.42 %
7
TRITURBINE
7114817
426.61 %
8
CUMMINSIND
1851769
391.23 %
9
IPCALAB
1850010
327.21 %
10
CREDITACC
891002
250.3 %
(source: NSE on 11th October 2024)
Disclaimer Note: The securities quoted, if any, are for illustration only and are not recommendatory. Past performance is not indicative of future results.
Understanding the stocks of the list:
Rajesh Exports Limited:
Rajesh Exports Ltd, incorporated in 1989, is a global leader in gold manufacturing and exports. It operates across the entire gold value chain, from refining to retailing, and processes 35% of the world’s gold. The company has the capacity to refine 2,400 tons of precious metals annually. Since its inception, it has consistently shown profitable growth and has paid out 100% dividends for the past 10 years. Its retail brand, SHUBH Jewellers, is well-known in the market. For FY2024, Rajesh Exports reported a net profit of Rs.337.03 crore and a total income of Rs.2,80,676.35 crore. As of the June 2024 quarter, it remains debt-free, with revenue of Rs.47,552.6 crore and a net profit of Rs.271.6 crore. (Source: Annual Report)
Just Dial Limited:
Justdial is India’s leading local search engine, offering search services across its app, website, and voice/text platforms. It operates in over 250 cities and 11,000 pin codes with around 12,000 employees across telesales, marketing, and ground activities. The company earns 70% of its revenue from 11 major cities like Mumbai, Bengaluru, and Delhi. Its tech and R&D division is based in Bengaluru. By Q1 FY25, Justdial had 583,690 active paid campaigns, 149.1 million ratings and reviews, and 44.9 million listings. The same quarter saw 181.3 million unique visitors. For June 2024, Justdial’s revenue hit Rs.280.6 crore, with a net profit of Rs.141.2 crore and a 38.4% profit margin. (Source: Annual Report)
Anand Rathi Wealth Limited:
Anand Rathi Wealth Ltd, founded on March 22, 1995, is a top player in India’s wealth solutions sector. It ranks among the top three non-bank mutual fund distributors, offering a range of financial products and services. By March 2024, 155 clients with over Rs.10 crores in assets saw a 14.6% annual return with 46% less risk than the NIFTY 50 Index, thanks to its 10-year strategy. In FY2024, the firm reported Rs.752 crores in revenue, up 35% from the previous year. The AUM grew 52% to Rs.59,351 crores, and PAT rose 34% to Rs.226 crores. 52.4% of its clients hold between Rs.5 and Rs.50 crores in investible assets, with many exceeding Rs.50 crores. Meanwhile, 23.6% of the AUM comes from clients with over Rs.50 crores in assets, and around 24% of clients have portfolios below Rs.5 crores. (Source: Annual Report)
Sun Pharma Advanced Research Company Limited:
SPARC is a clinical-stage biopharmaceutical firm dedicated to developing innovative treatments to improve patient care worldwide. Established in 2007 after a demerger from Sun Pharmaceutical Industries Limited, SPARC stands out as India’s first listed pharma R&D company. The founders still hold 70% ownership and actively invest in the company. SPARC focuses on oncology, neurodegeneration, and immunology, with a presence in the US and India. Its research facility in Vadodara spans 46,000 sq. ft., housing over 200 scientists across 42 labs. In FY2024, SPARC generated revenues of Rs.75.55 crore but faced a loss of Rs.387.21 crore, resulting in an earnings per share (EPS) of Rs.11.93. As of October 11, 2024, the company’s shares saw a negative return of -5.65% over the past year. (Source: Annual Report)
Triveni Turbine Limited:
Triveni Turbine Limited (TTL) is a leader in industrial heat and power solutions, focusing on steam turbines up to 100 MW. It dominates India’s industrial steam turbine market and ranks among the top global manufacturers. TTL specializes in steam turbine solutions for industrial heating and power generation, including renewable options. In 2022, TTL acquired a 70% stake in TSE Engineering, South Africa, and established a subsidiary in Texas, USA, by FY2024. The company serves customers in over 20 industries across over 80 countries, with over 6,000 turbines installed worldwide. In FY2024, TTL reported a net profit of Rs.269 crore and declared a 15% dividend payout, achieving a 31.3% return on equity. For the June 2024 quarter, TTL’s net sales rose 23.08% to Rs.463.28 crore, while net profit increased by 31.74% to Rs.80.03 crore, up from Rs.60.75 crore in June 2023. (Source: Annual Report)
Concerns about the Middle East conflict, foreign portfolio investor (FPI) outflows, and worries over potential earnings moderation have affected investor sentiment. The market is experiencing selling pressure with every rise. However, strong performance in key sectors like IT, pharma, and metals is helping to slow the downward trend. Given the current situation, it’s wise to adopt a cautious approach to your investment decisions until the market indices display decisive trends.
Disclaimer Note: The securities quoted, if any, are for illustration only and are not recommendatory. Past performance is not indicative of future results.
Understanding the Top 5 stocks of the list:
Gujarat Ambuja Exports Ltd.:
Gujarat Ambuja Exports (GAEL) has been producing corn starch derivatives, soya derivatives, feed ingredients, cotton yarn, and edible oil since 1991. It focuses on the food, pharmaceutical, and feed industries with a solid growth strategy in agro-processing. GAEL holds a leading position in this domain. The company operates through 80+ distributors across 10 domestic locations and exports to over 100 countries. In FY2024, its machinery investment reached Rs.1,276 Crore. GAEL reported a revenue of Rs.4,927 Crore in FY2024, with a net profit of Rs.346 Crore and a 15% RoCE. The dividend per share was Rs.0.35. The company also delivered a three-year return of 68.43% as of 9th October 2024. (Source: Annual Report)
Divi’s Laboratories Ltd.:
Divi’s Laboratories Ltd., based in Hyderabad, has been a leading player in the pharmaceutical industry for over 30 years. It has two manufacturing units and focuses on producing high-quality APIs, Intermediates, and Registered Starting Materials, supplying over 100 countries. The company operates in three segments: Generic APIs, Custom Synthesis, and Nutraceuticals. With a total capacity of 14,600 M³, it offers 160 products across different therapeutic areas. Divi’s has two subsidiaries in New Jersey and Basel to serve its nutraceutical clients better. Despite a drop in net profit margin to 19.70% in FY2024 from 22.67% in FY2023, revenue from operations increased to Rs.7,845 crore. The net profit for the quarter ending June 2024 also rose to Rs.430 crore. (Source: Annual Report)
Central Depository Services (India) Ltd:
Central Depository Services Limited (CDSL) is a key player in the capital market, offering services to exchanges, clearing corporations, depository participants (DPs), issuers, and investors. It lets you hold and transact securities electronically, including equities, bonds, mutual funds, and Treasury Bills. In 2023-24, CDSL celebrated its 25th anniversary and became the first depository to surpass 11.5 crore demat accounts. By the end of FY2024, CDSL had 11.56 crore investor accounts, holding a 76% market share, with a revenue of Rs.907 crore and a net profit of Rs.420 crore. It worked with 580 depository participants and supported 23,060 live companies, offering the highest-ever dividend per share of Rs.22. For the June 2024 quarter, CDSL’s total income was Rs.286.90 crore, reflecting a 7.30% increase from the previous quarter and a 65.02% rise compared to June 2023. Its stock showed a 4.45% growth over three years. (Source: Annual Report)
RITES Limited:
RITES Limited, founded in 1974, is a major public sector player in India’s transport consultancy and engineering. It’s the exclusive export arm of Indian Railways for rolling stock, except in Thailand, Malaysia, and Indonesia. RITES deals with locomotives, coaches, wagons, and train sets in various gauges. It also offers consultancy, exports, leasing, and turnkey solutions for railways, metros, airports, and highways. In FY2024, RITES had a strong dividend yield of 3.08%, with a payout ratio of 88.3%. However, in June 2024, its net sales dropped to Rs. 485.76 crore, down 10.76% from the previous year. The quarterly net profit also fell by 26.84%, reaching Rs. 79.02 crore, and EBITDA decreased by 28.62%, standing at Rs. 128.27 crore. (Source: Annual Report)
Gujarat Fluorochemicals Limited:
Gujarat Fluorochemicals Limited, part of the INOX Group, was formed in 2018 after a demerger from GFL Ltd. It is a leading producer of fluoro-polymers, chemicals, fluoro-specialties, and refrigerants in India. Globally, it’s one of the top five in the fluoropolymers market, exporting to regions like Europe, the Americas, Japan, and Asia. Some of its famous brands include Inoflon, Flounox, Inoflar, Inoclub, and Refron. With a presence in 16 countries, the company has grown at a 20% CAGR over the past five years. Backed by 30 years of experience in fluorine chemistry, it posted Rs. 4,281 crores in revenue for FY2024, with Rs. 435 crores in PAT and a 10% PAT margin. Its ROCE for FY2024 stands at 14.63%. (Source: Annual Report)
Top 10 stock performers 9 October from NIFTY 500
Based on the trade volume of 9th October 2024 vs the past one week’s average:
Sno
Symbol
Volume
Volume Change %
1
RITES
25278248
909.68 %
2
TORNTPOWER
4857383
748.81 %
3
GAEL
15218515
688.95 %
4
ELGIEQUIP
1289206
467.93 %
5
IDFC
65252142
401.0 %
6
BIRLACORPN
609134
385.99 %
7
IDFCFIRSTB
120767984
278.63 %
8
MAHABANK
39969400
277.36 %
9
SKFINDIA
152708
276.27 %
10
METROBRAND
257738
270.64 %
(source: NSE on 9th October 2024)
Disclaimer Note: The securities quoted, if any, are for illustration only and are not recommendatory. Past performance is not indicative of future results.
Understanding the stocks of the list:
Torrent Power Limited:
Torrent Power Ltd, part of the Torrent Group, is one of India’s leading power utility companies. It operates in power generation, transmission, and distribution, with a strong presence in Gujarat, Maharashtra, Uttar Pradesh, and Karnataka. The company is known for handling large power projects and plays a key role in Gujarat’s private sector. It also manufactures and supplies power cables. Recently, Torrent Power secured renewable project contracts of around 956 MW, with high CUF requirements. The company now has about 3 GWp of renewable capacity under construction, involving a capex of Rs.18,000 crore. Their total renewable capacity is expected to reach 4.3 GW in the next 2-3 years, nearing their goal of 5 GW. In FY2024, Torrent Power’s generation capacity was 4,328 MW. For the June 2024 quarter, net sales increased by 23.28% to Rs.9,033.73 crore, while net profit surged 87.96% to Rs.972.24 crore from Rs.517.27 crore in June 2023. (Source: Annual Report)
Elgi Equipments Limited:
Elgi Equipments Ltd., established in 1960, is a mid-cap player in the Electric/Electronics sector. They offer over 400 products, including air compressors, automotive equipment, diesel-powered portable compressors, and medical air systems. Their presence spans 120+ countries as of FY2024. In 2023-24, Elgi reported an operating revenue of Rs.3217.8 crore, reflecting 6% growth. The net profit stood at Rs.311.9 crore, with a return on capital employed (ROCE) of 305%. The company’s stock has delivered 233.68% returns over three years and 35.32% in the past year, as of 9th October 2024. On the same date, the stock’s price-to-earnings (P/E) ratio was 63.78. (Source: Annual Report)
IDFC Limited:
IDFC Limited, established in 1997, is a Non-Banking Finance Company (NBFC) regulated by the Reserve Bank of India. It holds investments in IDFC FIRST Bank and IDFC AMC, with a 36.60% stake in the former and 99.96% in the latter. Previously, IDFC focused on financing infrastructure projects in energy, telecom, and industrial sectors until 2015. IDFC operates through listed entities like IDFC FIRST Bank, while other businesses are unlisted. It has investments totaling INR 7,386 crore in financial services such as banking, asset management, investment banking, broking, and infrastructure debt funds. These are managed under IDFC Financial Holding Company Limited. As of FY2024, the company is nearly debt-free, showing strong profit growth of 30.8% CAGR over the last five years, with a net profit of INR 1,046 crore. (Source: Annual Report)
Birla Corporation Limited:
Birla Corporation Limited is the flagship company of the M.P. Birla Group. Founded in 1919 as Birla Jute Manufacturing Company Limited, it was shaped by the vision of the Late Mr. Madhav Prasad Birla. The company manufactures various cement types, including OPC, PPC, fly ash-based PPC, Low-Alkali Portland Cement, and Portland Slag Cement. It also has a significant presence in the jute goods industry. Recently, Birla Corporation acquired 100% of Reliance Cement Company, a subsidiary of Reliance Infrastructure, for an enterprise value of Rs.4,800 crores. In the fiscal year 2023-24, it reported a turnover of Rs.9,662.72 crores and a net profit of Rs.420.56 crores. As of FY2024, its net worth stands at Rs.6,674 crores, with a debt-to-equity ratio of 0.67 times and a dividend payout of 25%. (Source: Annual Report)
IDFC First Bank:
IDFC First Bank provides a variety of banking services across India. It was formed by merging the former IDFC Bank and Capital First on December 18, 2018. This bank was the first to offer monthly credit on savings accounts. With a total business exceeding Rs. 4 lakh crore, it offers over 25 products, including retail banking, SME services, corporate banking, and wealth management. IDFC First Bank operates 944 branches and 1,164 ATMs nationwide. As of FY2024, customer deposits grew at a CAGR of 37%. The bank issued loans and advances worth Rs.2,00,965 crore, a growth of 25.14%. Its net NPA stands at 0.60%, while total deposits reached Rs. 2,00,576 crore, marking a 38.68% increase. The CASA ratio is 47.25%, and the bank’s capital adequacy ratio is 16.11%, with a net worth of Rs.32,161 crore and a PAT of Rs.2,957 crore, reflecting a 21.31% increase. (Source: Annual Report)
Central banks worldwide are easing rates as inflation falls. The US Federal Reserve recently cut rates for the first time in over four years. Following this trend, the RBI has also taken action as early signs of slowing economic growth emerge. In the markets, things turned around in the second half, with stocks slipping into the red due to selective profit-taking. Investors are becoming more cautious as the second-quarter earnings season approaches. For markets to perform well moving forward, strong conviction is important. However, clear signals might take time to appear. Given the current situation, staying cautious with your investments is suggested.
Top 10 stock performers 8th October 2024 from NIFTY 500
Disclaimer Note: The securities quoted, if any, are for illustration only and are not recommendatory. Past performance is not indicative of future results.
Understanding the Top 5 stocks of the list:
One 97 Communications Ltd. (Paytm):
Paytm, India’s top consumer and merchant digital ecosystem, was founded in 2000. By March 2021, it had over 333 million customers and 21 million registered merchants. In FY2024, its merchant subscriptions hit 1.07 crore, with 9.6 crore monthly users. The company’s loan distribution saw strong growth, disbursing Rs.52,390 crore in loans, a 48% increase from the previous year. Paytm also issued 12 lakh cards through partnerships with SBI Card, HDFC Bank, and Kotak Bank. While its revenue reached Rs.9,978 crore, it recorded a net loss margin of 14.3%. On a positive note, Paytm reduced its debt, with a debt-to-equity ratio of just 0.01. (Source: Annual Report)
Safari Industries Ltd.:
Safari Industries has been in the luggage business since 1974, offering both hard and soft luggage under brands like Safari, Magnum, Genius, and Genie. Recently, they introduced a budget-friendly range of polypropylene (PP) luggage available in standalone stores, canteen stores, and e-commerce platforms like Amazon and Flipkart. Their products are also sold through B2B and B2C channels. The company has experienced strong growth, with a 44.7% CAGR over the last five years (as of FY2024). Its stock price rose by 52.84% in the past year, as of August 7th, 2024. For FY2024, Safari’s revenue from operations reached Rs.1,550.42 crore, with total income at Rs.1,564.30 crore, up from Rs.1,221.44 crore the previous year. (Source: Annual Report)
BSE Limited:
The Bombay Stock Exchange (BSE) is India’s first stock exchange, established in 1875 on Dalal Street, Mumbai. It was also Asia’s first stock exchange and gained official recognition in 1956. BSE is famous for its ultra-fast trading speed of 6 microseconds. In 1986, it introduced the S&P BSE SENSEX to track market performance. BSE became India’s first listed stock exchange in 2017. For FY 2023-24, its total income jumped 70% to Rs.1617.90 crore, and net profit increased 97% to Rs.404.14 crore. It also created a Capital Redemption Reserve of Rs.1,73,064 due to share buybacks. As of 8th October 2024, the BSE SENSEX rose 35.92% in three years, while NIFTY50 grew 39.78%. (Source: Annual Report)
Triveni Turbine Limited:
Triveni Turbine Limited (TTL) is a leader in industrial heat and power solutions, focusing on steam turbines up to 100 MW. TTL dominates India’s industrial steam turbine market and is among the top global manufacturers. They specialize in steam turbine solutions for industrial heating and power generation, including renewable options. In 2022, TTL acquired a 70% stake in TSE Engineering, South Africa, and established a subsidiary in Texas, USA, by FY2024. The company serves customers in over 20 industries across 80+ countries, with more than 6,000 turbines installed worldwide. In FY2024, TTL reported a net profit of Rs. 269 crore and declared a 15% dividend payout. They also achieved a 31.3% return on equity. In the June 2024 quarter, TTL’s net sales rose 23.08% to Rs. 463.28 crore, while their net profit increased by 31.74% to Rs. 80.03 crore from Rs. 60.75 crore in June 2023. (Source: Annual Report)
HEG Limited:
HEG Ltd is one of India’s top manufacturers and exporters of graphite electrodes. It operates the world’s largest integrated graphite electrode plant, with a yearly production of 80,000 tons. As part of the LNJ Bhilwara Group, HEG is also involved in IT services, power, and textiles. The company produces different grades of graphite electrodes, like UHP, SHP, and HP, exporting 65-70% of its output to 35 countries for over 20 years. In June 2024, HEG’s revenue dropped to Rs.571.46 crore from Rs.671.43 crore in June 2023, while its net profit declined to Rs.23.04 crore from Rs.139.08 crore. HEG’s stock price, on the other hand, gave a return of 37.66% over the past year as of 8th October 2024. (Source: Annual Report)
Top 10 stock performers 8th October 2024 from NIFTY 500
Based on the trade volume of 8th October 2024 vs the past one week’s average:
Sno
Symbol
Volume
Volume Change %
1
AIAENG
459268
621.56 %
2
TRITURBINE
3983241
444.37 %
3
GPIL
5820327
334.86 %
4
GILLETTE
104121
305.72 %
5
CARBORUNIV
392423
263.01 %
6
RVNL
19575176
250.24 %
7
MFSL
2057619
249.51 %
8
DIXON
1221261
236.49 %
9
ZFCVINDIA
18518
205.45 %
10
GRSE
2039399
180.1 %
(source: NSE on 8th October 2024)
Disclaimer Note: The securities quoted, if any, are for illustration only and are not recommendatory. Past performance is not indicative of future results.
Understanding the stocks of the list:
AIA Engineering Ltd.:
AIA manufactures high-chrome grinding media, liners, and diaphragms, known as mill internals. These are essential for crushing and grinding in the cement, power, and mining industries. As a leading partner in the Mining, Cement, and Quarry sectors, AIA Engineering Ltd. offers innovative products and complete solutions to boost productivity. The company operates across 120+ countries, with five manufacturing clusters and 10+ warehouses. It’s currently expanding its non-grinding media business with a planned investment of Rs.200 crores, Rs.110 crores of which has already been spent. AIA also added a group captive hybrid project (wind and solar) in Gujarat, increasing renewable energy capacity to 37.38 MW. As of FY 2024, the company’s revenue reached Rs.4,853.76 crore, with a PAT of Rs.1,136.99 crore and a 23% PAT margin. (Source: Annual Report)
Godawari Power & Ispat Limited:
Godawari Power & Ispat (GPIL) specializes in mining iron ore and producing iron ore pellets, sponge iron, steel billets, wire rods, and ferro alloys, along with generating electricity. It operates two captive mines, Ari Dongri, and Boria Tibu, with a total reserve of 165 MnT, supporting over 35 years of production. These mines cover 85% of its iron ore needs, cutting down raw material costs. In FY 2024, GPIL achieved impressive growth, increasing steel billet production by 48%, sponge iron by 20%, and ferro alloys by 18%. It also bought back 2.15 million shares at Rs.1400 per share. The company’s revenue reached Rs.5,455 crores, with a PAT rise of 18% and an ROCE of 28%. (Source: Annual Report)
Gillette India Ltd.:
Gillette India Limited is a public company that operates in the grooming and oral care segments. It offers popular brands like Fusion5, SkinGuard Sensitive, MACH3, Guard3, Styler, and Presto. For the quarter ending March 2024, Gillette reported a total income of Rs.686.43 crore. This was a 6.15% increase from Rs.646.65 crore last quarter and an 8.81% jump from Rs.630.84 crore in March 2023. The company is nearly debt-free and posted a net profit of Rs.356 crore for FY2024. As of 8th October 2024, its 1-year returns were 42.14%, significantly outperforming the NIFTY50’s 39.78%. Plus, the company’s 3-year CAGR revenue is maintained at 9.2% as of the same date. (Source: Annual Report)
Carborundum Universal Ltd.:
CUMI, part of the 124-year-old Murugappa Group, started in 1954 as an abrasives company. Over time, it has grown into a fully integrated “mines-to-market” operation, handling everything from mining to power generation, manufacturing, marketing, and distribution. CUMI produces abrasives, ceramics, refractories, and electro-minerals, offering rigid and flexible abrasives like Bonded Abrasives, Coated Abrasives, Metal Working Fluids, and Super Abrasives. With over 70 years of experience, CUMI holds a 30% share of India’s bonded abrasives market. It has a manufacturing presence in 5 countries and sells to 40+ countries. In FY2024, revenue reached Rs.4,628.2 crore with a PAT of Rs.461.3 crore. For the June 2024 quarter, net sales were Rs.1,197.54 crore, slightly down from Rs.1,203.22 crore in June 2023. Net profit dropped to Rs.112.96 crore, while EBITDA saw a marginal rise to Rs.200.59 crore. (Source: Annual Report)
Rail Vikas Nigam Limited:
Rail Vikas Nigam Ltd (RVNL) is a Navratna Company established in 2003 by the Government of India. It operates as a fully-owned public sector unit under the Ministry of Railways. RVNL focuses on various rail infrastructure projects, including doubling tracks, gauge conversions, new lines, railway electrification, major bridges, workshops, and production units. It also shares freight revenue with the Railways per its concession agreements. By March 2005, RVNL was fully operational and had received an “Excellent” rating from the Department of Public Enterprises for nine years, ranking first among Railway PSUs four times in the last five years. As of FY2024, RVNL reported a revenue of Rs.21,732.58 crore, a net worth of Rs.7,867.28 crore, and a dividend of Rs.439.94 crore. The profit after tax (PAT) was Rs.1,463 crore, with a three-year CAGR net profit growth rate of 12% and a return on equity of 21%. Its return on capital employed (RoCE) for FY2024 was 19%, slightly up from 18% in FY2023. (Source: Annual Report)
While geopolitical conditions have trapped multiple markets in a lingering negative sentiment, the RBI Policy has raised the levels of uncertainty in the Indian indices. The current recovery phase can be used to selectively lighten positions. However, it is imperative that you remain cautious with your selections and make all your decisions only after thorough market research.
Top 10 stock performers 7th October 2024 from NIFTY 500
Disclaimer Note: The securities quoted, if any, are for illustration only and are not recommendatory. Past performance is not indicative of future results.
Understanding the Top 5 stocks of the list:
Finolex Industries Limited:
Finolex Industries Ltd. (FIL), founded in 1981, is a key player in the PVC industry. It offers durable PVC-U pipes and fittings for agriculture, construction, and industrial use. FIL has two main divisions: PVC Resin and PVC Pipes & Fittings. It’s a leading competitor in the domestic PVC markets and holds India’s second-largest capacity for PVC pipes. What sets FIL apart is its vertical integration, producing its own PVC resin, the primary raw material for pipes. For the quarter ending June 2024, FIL’s income was Rs.1,195.39 crore, a 6.55% drop from the previous quarter. However, net profit rose to Rs.500.23 crore from Rs.161 crore in the previous quarter. (Source: Annual Report)
CG Power & Industrial Solutions Ltd.:
CG Power & Industrial Solutions offers sustainable electrical energy solutions for utilities, industries, and consumers. The company operates in two main segments: Power Systems and Industrial Systems. It has been around for over 85 years and was recently acquired by Murugappa Group’s Tube Investments, with a Rs.700 crore infusion in FY2020. The Industrial Systems division focuses on Motors & Drives and Railways, while Power Systems deals with transformers and switchgears. CG has nine manufacturing plants in India and one in Sweden, with 3,113 employees. In FY2024, the company earned Rs.8,046 crore in revenue, up 15% from Rs.6,973 crore in FY2023. The order intake reached Rs.10,512 crore, and its unexecuted order book grew by 44% to Rs.6,411 crore. India Ratings upgraded CG’s long-term credit rating to ‘IND AA+’. The company paid an interim dividend of Rs.199 crore, with a PAT of Rs.870 crore and a net worth of Rs.3,017 crore. (Source: Annual Report)
AstraZeneca India Limited:
AstraZeneca India, founded in 1979 and based in Bengaluru, Karnataka, manufactures and sells pharmaceuticals in areas like cancer, cardiovascular health, respiratory issues, gastrointestinal problems, neurosciences, and infections. It’s supported by AstraZeneca plc, a global biotech company from England. As of September 30, 2024, AstraZeneca Pharma India Ltd. (AZPIL) recorded a one-year return of 76.98% and a three-year return of 157.96%. In FY2024, the company had a dividend payout of 39.3% and reported a net profit of Rs. 162 crore. For the quarter ending June 2024, AZPIL’s revenue grew by 29% year-on-year. (Source: Annual Report)
Supreme Industries Limited:
Supreme Industries Limited is India’s top plastic product manufacturer, offering many products. It operates in categories like Plastic Piping Systems, Cross Laminated Films, Protective Packaging, Industrial Moulded Components, Moulded Furniture, and more. The company holds a 30.78% stake in Supreme Petrochem Ltd (SPL). In FY2024, SPL is moving forward with its ambitious expansion plan. The first line of the MASS ABS Project is on track and expected to start by Q4 of FY2024-25. For FY2023-24, Supreme Industries reported net revenue of Rs.10,134.20 crore, with a 26.3% growth in product turnover by volume. The PAT for the same period was Rs.1,016.17 crore, and the earnings per share (EPS) stood at Rs.80.00. (Source: Annual Report)
Blue Dart Express Limited:
Blue Dart Express Limited, founded in 1983, specializes in time-sensitive deliveries. It provides door-to-door service via its ground and air transportation network. Blue Dart is South Asia’s leading courier and air express distribution company. In FY2024, the company reported revenue of Rs.5,267.83 crore, with a PAT of Rs.288.64 crore and a net worth of Rs.1,438.63 crore. Its return on capital employed (ROCE) was 26.6%. For the June 2024 quarter, net sales reached Rs.1,342.71 crore, an 8.5% increase from Rs.1,237.55 crore in June 2023. However, net profit for the same quarter dropped by 12.83%, from Rs.61.28 crore in June 2023 to Rs.53.42 crore in June 2024. (Source: Annual Report)
Top 10 stock performers 7th October 2024 from NIFTY 500
Based on the trade volume of 7th October 2024 vs the past one week’s average:
Sno
Symbol
Volume
Volume Change %
1
FINPIPE
11331818
1448.65 %
2
BRIGADE
2470388
337.14 %
3
ASTRAZEN
1116761
299.92 %
4
NATCOPHARM
2566447
261.09 %
5
MPHASIS
2253788
248.79 %
6
CGPOWER
8376679
247.17 %
7
APTUS
4043162
240.72 %
8
UTIAMC
762246
212.22 %
9
CRISIL
106552
209.46 %
10
RVNL
13064366
199.97 %
(source: NSE on 7th October 2024)
Disclaimer Note: The securities quoted, if any, are for illustration only and are not recommendatory. Past performance is not indicative of future results.
Understanding the stocks of the list:
Brigade Enterprises Ltd.:
Brigade Enterprises Ltd was founded in 1986 and is based in Bengaluru, focusing on real estate development in South India. The company has completed over 250 buildings, totaling more than 70 million square feet across Bengaluru, Mysuru, Chennai, Ahmedabad, Hyderabad, and Kochi. It’s among the top 10 listed developers in India by market capitalization, serving over 40,000 customers. Brigade’s diverse portfolio includes residential and commercial properties, SEZs, hospitality, townships, and schools. It also partners with global investors, including the GIC (Government of Singapore Investment Corporation). In FY2024, Brigade achieved record sales of Rs.6,013 crore. Revenue reached Rs.5,064.2 crore, marking a 42% growth, with a PAT of Rs.401 crore—up 81%. Collections rose by 9% to Rs.5,915 crore, and net worth stood at Rs.3,557.8 crore. They also inaugurated Ramaiah Memorial Hospital at Brigade Orchards, their 135-acre smart township. (Source: Annual Report)
NATCO Pharma Limited:
NATCO Pharma Limited (NATCO) is a pharmaceutical company that focuses on research and development. It develops, manufactures, and markets complex products for niche therapeutic areas. NATCO operates in three segments: finished dosage formulations (FDF), active pharmaceutical ingredients (APIs), and contract manufacturing. The company targets niche opportunities in the US, focusing on Para IV and First-to-File molecules. It has begun winning tenders in Asian markets like Malaysia and Thailand. NATCO is dedicated to high-barrier-to-entry products that involve intricate chemistry, challenging delivery systems, or complex manufacturing processes. For the quarter ending June 2024, the profit after tax was Rs.668.5 crore, with a PAT margin of 47.4%. Total revenue reached Rs.1,410.7 crore, including Rs.1,210.1 crore from pharma export formulations. The Board declared an interim dividend of Rs.3 per equity share of Rs.2 each. (Source: Annual Report)
Mphasis Ltd.:
Mphasis is a global IT solutions provider specializing in cloud and cognitive services. It uses next-generation technology to help businesses transform worldwide. In June 2006, Electronic Data Systems Corporation acquired Mphasis, which later became a subsidiary of Hewlett-Packard (HP) after HP acquired EDS. In September 2016, Blackstone Group acquired HP’s stake, and they still promote Mphasis today. In FY2024, Mphasis invested in Riyadh and nearshore models in Taiwan, Mexico, Poland, and Costa Rica. The company launched the Mphasis Gen AI Foundry with Amazon Web Services (AWS) and introduced DeepInsights™ Doc AI. It also formed strategic partnerships with Kore.ai, WorkFusion, and CoreStack. For FY2024, Mphasis reported a net revenue of Rs.13,278.5 crore, marking a 42% year-on-year increase. It also saw a 73% rise in large deal wins and a net profit of Rs.1,684.35 crore. (Source: Annual Report)
Aptus Value Housing Finance India Ltd.:
Aptus Value Housing Finance India Ltd is a home loan company focused on self-employed and low to middle-income families, mainly in semi-urban and rural areas. They primarily target first-time homebuyers, using self-occupied residential property as collateral. Aptus offers a range of products, including housing loans, business loans, quasi-home loans, and insurance support. Founded in 2010, it operates in 267 locations across India. Recently, CARE upgraded its rating to ‘AA-; Positive’ from ‘AA-; Stable.’ Aptus has shown strong profitability, with a Return on Equity (RoE) of 18.13% and a five-year CAGR of 30% as of June 2024. In the June 2024 quarter, Aptus reported a loan book of Rs.9,072 crore, a total income of Rs.405 crore, and a PAT of Rs.172 crore. Its assets under management (AUM) grew by 27% year-on-year, with a gross NPA of 1.3%. (Source: Annual Report)
Dr. Lal PathLabs Limited:
UTI is India’s oldest mutual fund registered with SEBI under the SEBI (Mutual Funds) Regulations, 1996. It was the first to introduce mutual funds in India, paving the way for equity mutual funds and children’s plans. With a 5.37% market share in the mutual fund industry and 27.4% in the National Pension System, UTI has a solid presence, operating 193 touchpoints across the country. In 2023-24, its Assets Under Management grew to Rs.18.48 lakh crore, while the domestic mutual fund QAAUM reached Rs.2.91 lakh crore. Additionally, the company reported a 75% rise in consolidated profit after tax, totaling Rs.766 crore. (Source: Annual Report)
The geopolitical tensions resulted in a weak market texture globally. It is thus possible that the market may see non-directional activities in the sessions ahead. Hence, it is suggested that you keep a cautious approach and be very selective in your stock-picking decisions in the trading sessions to come.
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 performance of the intermediary or provide any assurance of returns to investors.
The Central Board of Direct Taxes (CBDT) has introduced a new form, 12BAA, to help salaried individuals reduce the Tax Deducted at Source (TDS) from their salaries. This is a significant development as it provides taxpayers with a more efficient way to manage their tax liabilities.
This new regulation, allowing employees to notify their employer about TDS from other income sources or TCS (Tax Collected at Source) collected during significant purchases, took effect on October 1, 2024. CBDT introduced this new form 12BAA, which allows employees to inform their employers about tax deductions from income sources beyond their salary. These sources could include fixed deposits, insurance commissions, dividends from shares, or taxes collected when making large purchases like cars or foreign currency. Source: Economic Times
Understanding Form 12BAA
Form 12BAA is a declaration form that salaried employees can submit to their employers to claim deductions or exemptions that may reduce their taxable income. This form allows them to inform their employer about taxes paid on other sources of income or expenses. It’s similar to Form 12BB, which is used to declare investments, ensuring the correct amount of tax is deducted from the salary.
Key Benefits of Form 12BAA
Reduced TDS: By accurately declaring deductions and exemptions, employees can ensure that the TDS deducted from their salaries is not excessive.
Enhanced Tax Compliance: Using Form 12BAA helps individuals comply with their tax obligations more efficiently.
Simplified Tax Filing: Providing accurate information on Form 12BAA can simplify filing income tax returns.
Comprehensive Tax Reporting: Modifiedform 12BB will allow employees to report additional income details, claim house property losses, and claim TCS credit through the employer, making the tax process more efficient and reducing evasion.
Form 12BAA to Boost Take-Home Pay: Form 12BAA will help employees reduce tax deductions on their salary by factoring in taxes paid from other income sources, ultimately increasing their take-home pay.
How Form 12BAA Helps Employees Reduce TDS from Salaries
TDS Deduction Based on Declarations
Employees can now inform their employers about TDS deducted from other income sources or TCS collected during major purchases. Before this, there was no formal way to convey this information to employers, but the new form provides a standardized mechanism for doing so.
Mechanism for Reporting Other Taxes
-Employees can now inform their employers about TDS deducted from other income sources or TCS collected during major purchases.-Before this, there was no formal way to convey this information to employers, but the new form provides a standardized mechanism for doing so.
Salaried employees can submit Form 12BAA to their employers anytime during the financial year. However, submitting the form at the beginning of the financial year is generally recommended to maximize the benefits of reduced TDS.
How to Submit Form 12BAA
Submitting Form 12BAA is relatively straightforward. Employees can obtain the form from their employers or download it from the CBDT website. Once completed, the form should be submitted to the employer along with supporting documents, if required.
Important Considerations
Accuracy: It is crucial to ensure that the information in Form 12BAA is accurate and complete. Inaccurate information may lead to penalties or other legal consequences.
Supporting Documents: Employers may require supporting documents to verify the claims made in Form 12BAA. It is essential to provide all necessary documentation to avoid delays or discrepancies.
Regular Updates: If any income or deductions are changed during the financial year, you may need to update Form 12BAA accordingly.
Income Tax Laws on Salary Tax Deductions
Employer’s Duty to Deduct Tax
Under Section 192 of the Income-tax Act, employers must deduct tax from the salary paid to employees.
The tax deduction is based on the employee’s chosen tax regime, either the new or old system.
Choosing Between Tax Regimes
Employees have the option of choosing between the new tax regime, which offers lower tax rates but fewer exemptions, and the old regime, which includes various deductions and exemptions.
Investment Declaration for Lower TDS
Employees need to submit an investment declaration to their employer to reduce the tax deducted from salary. This helps employers adjust the TDS by accounting for eligible deductions and exemptions based on the regime selected by the employee.
Additional Tips for Maximizing Tax Savings
Plan Ahead: Start planning your tax deductions and exemptions well in advance to ensure that you take advantage of all available opportunities.
Consult a Tax Professional: If you are unsure about which deductions or exemptions you are eligible for, it is advisable to consult with a tax professional for guidance.
Stay Updated: Stay informed about the latest tax laws and regulations to avoid penalties or interest charges.
By understanding and effectively utilizing Form 12BAA, salaried employees can significantly reduce their TDS liabilities and optimize their tax savings.
FAQ
What is Form 12BAA?
Form 12BAA is a new form introduced by the Central Board of Direct Taxes (CBDT) to simplify the process of claiming salary tax deductions. This form allows individuals to directly declare their eligible deductions to their employers, reducing the amount of Tax Deducted at Source (TDS) withheld from their salaries. This is a significant step towards making the tax filing process more efficient and convenient for taxpayers.
Who can benefit from Form 12BAA?
Form 12BAA is primarily beneficial for salaried individuals with eligible deductions under various sections of the Income Tax Act, such as Section 80C, 80D, or 80E. By submitting this form to their employers, they can ensure that the correct amount of TDS is deducted, preventing the need for excess tax to be paid during the annual tax filing process.
How does Form 12BAA work?
To use Form 12BAA, individuals need to provide their employers with a duly filled form and supporting documents for their claimed deductions. The employer will then verify the provided information and adjust the TDS deducted from the employee’s salary accordingly. This streamlined process eliminates the need for manual calculations and reduces the chances of errors.
What are the benefits of using Form 12BAA?
Using Form 12BAA offers several advantages to salaried individuals. It simplifies the tax filing process by reducing the need for manual calculations and adjustments during the annual tax return. Additionally, it helps taxpayers avoid paying excess TDS, which can be a significant financial burden. By accurately declaring their deductions, individuals can ensure that they pay only the correct amount of tax, optimizing their financial situation.
Are you keeping an eye on the latest IPOs? Waaree Energies IPO and Deepak Builders are making waves with their upcoming offerings, aiming to raise a combined ₹4,581.48 crores. Waaree Energies is leading the charge with a whopping ₹4,321.44 crore, while Deepak Builders is looking to raise ₹260.04 crore.
You must be curious about what’s driving these IPOs, right? Let’s get into the details, from their objectives to the buzz surrounding their Grey Market Premiums (GMPs). We’ll also examine both companies’ financial health to see if they’re worth the hype.
Waaree Energies Ltd. is launching an IPO worth ₹4,321.44 crores. This IPO is structured as a book-built issue, consisting of a fresh issue of 2.4 crore shares totaling ₹3,600.00 crores and an offer for sale (OFS) of 0.48 crore shares valued at ₹721.44 crores.
Retail investors can participate in the IPO with a minimum investment of ₹13,527, which equates to a bid of 9 shares. For high-net-worth individuals (HNIs), the minimum investment required varies: sNII investors need to apply for 15 lots (135 shares), amounting to ₹202,905, while bNII investors must apply for 74 lots (666 shares), with an investment of ₹1,000,998.
Allocation Shares of Waaree Energies IPO
The allocation of shares is based on multiples of 9, with retail investors able to invest up to 14 lots (126 shares), which would cost ₹189,378. HNIs can go as high as 73 lots (657 shares) for sNII, amounting to ₹987,471.
The primary objectives of the Waaree Energies IPO are twofold:
Part-financing the cost of setting up a 6GW Ingot Wafer, Solar Cell, and Solar PV Module manufacturing facility in Odisha, India.
Utilizing the proceeds for general corporate purposes.
GMP of Waaree Energies IPO
As of October 18, 2024, the Grey Market Premium (GMP) for Waaree Energies IPO was ₹1330. A price band of ₹1503 brings the estimated listing price to ₹2833 per share, indicating an expected gain of 88.49% per share at listing. Source: Livemint
Company Overview of Waaree Energies IPO
Incorporated in 1990, Waaree Energies Limited is a major player in India’s solar PV module manufacturing space, boasting an installed capacity of 12 GW. The company offers a variety of solar energy products, including:
Multicrystalline modules
Monocrystalline modules
TopCon modules include flexible bifacial modules (Mono PERC) and building-integrated photovoltaic (BIPV) modules.
Waaree Energies operates four manufacturing facilities across 136.30 acres in Gujarat, India. These are located in Surat, Tumb, Nandigram, and Chikhli. The company holds various ISO certifications, ensuring high manufacturing and marketing standards and supplying solar photovoltaic modules.
SWOT Analysis of Waaree Energies Ltd.
STRENGTHS
WEAKNESSES
Largest Solar PV Module Manufacturer in India, with advanced facilities and global accreditations.
A diversified customer base, both domestically and internationally.
Strong financial track record, with significant growth in revenue and profits over the past few years.
Extensive pan-India retail network and a solid order book, providing steady business visibility.
An experienced management team with a clear growth strategy.
Heavy reliance on solar energy demand, which is subject to government policies and market conditions.
Significant dependence on raw material imports, making the company vulnerable to supply chain disruptions and price fluctuations.
OPPORTUNITIES
THREATS
Growing demand for renewable energy and solar power presents a large market potential.
The expansion of manufacturing capacity with the new 6GW facility in Odisha could drive future growth.
Opportunities to diversify product offerings in solar technologies and expand further into international markets.
Competition from other global and domestic players in the solar energy space.
The potential impact of technological advancements could require significant investment to stay competitive.
Regulatory changes in India or globally could affect market demand and operational costs.
Financials
Waaree Energies has demonstrated strong financial growth in recent years. Between FY23 and FY24, the company’s revenue increased by 70%, while the profit after tax (PAT) surged by 155%. Over the past two years, revenue grew from ₹29,458.51 lakh in FY22 to ₹116,327.63 lakh in FY24, representing a 294.9% increase.
Deepak Builders & Engineers is launching an IPO with a fresh issue of 1.07 crore shares totaling ₹217.21 crores and an offer for sale (OFS) of 0.21 crore shares valued at ₹42.83 crores. Investors can bid in multiples of 73 shares, with the minimum investment required being ₹14,819. For retail investors, the maximum bid can go up to 949 shares, amounting to ₹192,647.
The allotment of the IPO will be finalized on October 24, 2024, and the tentative listing date on BSE and NSE is October 28, 2024.
Allocation Shares of Deepak Builders & Engineers IPO
High-net-worth individuals (HNIs) have different bidding tiers. For sNII investors, the minimum investment starts at 14 lots, and they can bid up to 67 lots. bNII investors need to apply for at least 68 lots with an investment of ₹1,007,692.
The funds raised from the fresh issue are planned to be used for:
Repaying or prepaying certain company borrowings.
Meeting the working capital requirements to support business expansion.
For general corporate purposes
GMP of Deepak Builders & Engineers IPO
As of October 18, 2024, the Grey Market Premium (GMP) for Deepak Builders & Engineers’ IPO is ₹32. With a price band set at ₹203, the estimated listing price is ₹235, reflecting an expected 15.76% gain per share. Source: Livemint
Company Overview of Deepak Builders & Engineers IPO
Deepak Builders & Engineers India Limited, founded in September 2017, specializes in constructing administrative, institutional, and industrial buildings, hospitals, stadiums, and residential complexes. They are engaged in several high-profile construction and infrastructure projects across Punjab, Haryana, Rajasthan, Uttarakhand, and the Union Territories of Chandigarh and Delhi.
The company has completed turnkey projects, including architectural design, civil work, MEP (Mechanical, Electrical, Plumbing), firefighting systems, and IT infrastructure. The business operates in three main verticals:
Construction Projects
Infrastructure Projects
Sale of products
Currently, the company is managing 12 ongoing projects, which include:
Four hospital and medical college projects.
One administrative and institutional building.
One industrial building.
Four infrastructure projects related to railway station development.
Two road and bridge projects, including rail over bridges.
SWOT Analysis of Deepak Builders & Engineers
STRENGTHS
WEAKNESSES
Proven expertise in turnkey construction projects across various healthcare, institutional, and industrial sectors.
Growing presence in infrastructure projects, including railway station development and road/bridge construction.
Strong financial growth, with revenue and profitability showing impressive increases over recent years.
Ongoing projects in multiple states and union territories, ensuring diverse revenue streams.
Limited geographical reach within India, with projects concentrated in only four states and two union territories.
High dependency on large, government-funded infrastructure projects, which can be vulnerable to policy changes and budget constraints.
OPPORTUNITIES
THREATS
Expansion into new regions or sectors could provide significant growth potential.
Increasing government focus on infrastructure development across India presents opportunities for further contract wins.
Potential to scale up the business and enter into PPP (Public-Private Partnerships) for larger infrastructure projects.
Intense competition from other established construction firms, both locally and nationally.
Economic downturns or changes in government spending priorities could impact the demand for large-scale construction projects.
Possible delays in project execution due to external factors like supply chain disruptions or regulatory hurdles.
Financial Strength
Deepak Builders & Engineers has experienced significant growth over the past two years. Between FY22 and FY24, the company’s revenue increased by 41.6%, from ₹3,649.87 lakh to ₹5,167.42 lakh. This growth was accompanied by a strong increase in profitability, with Profit After Tax (PAT) rising from ₹176.64 lakh in FY22 to ₹604.1 lakh in FY24, a growth of 242%.
In the last year alone (FY23 to FY24), the company’s revenue grew by 19%, and PAT increased by 182%, showcasing strong financial performance.
Conclusion
With Waaree Energies and Deepak Builders gearing up for their IPOs, the Indian stock market is set for an exciting week. Investors will closely watch these offerings as they represent opportunities in the renewable energy and construction sectors. However, conducting thorough research and considering your risk tolerance before making any investment decisions is crucial.
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 performance of the intermediary or provide any assurance of returns to investors.
Hyundai Motor India (HMI) has dominated the automotive market since its 1996 launch in India. Understandably, when the country’s second-largest car manufacturer’s (after Maruti) IPO launched on 15 October, it was met with much anticipation. However, the ₹27,870 crore IPO, the largest in India’s history, saw merely 0.18 times subscription on its opening day. While the subscription stood at 42% on Day 2, it shot up marginally to 51% on the closing day, with its GMP sinking to below 1%. Source: Mint
Market experts are attributing the lukewarm response to many factors. Here’s a lowdown on what these are and how the IPO has performed so far:
The IPO has a price range of ₹1,865 to ₹1,960 per share
The NII portion, comprising high-net-worth individuals, was subscribed 0.13 times, while retail investors subscribed 0.26 times. The portion for employees (discounted price of ₹186 per share) was subscribed 0.8 times (80%).
35% of share reservation is for retail investors, 50% for qualified institutional buyers (QIBs), and 15% for NIIs.
₹8,315 crore (about 30% of the IPO size) was raised from 225 anchor investors, including funds owned by the Singapore government
However, despite the initial buzz, Hyundai’s IPO witnessed an unexpected slowdown. Here are the top reasons why.
4 Factors Why Hyundai IPO Didn’t Shift into Top Gear
High Offer Price
One of the biggest concerns investors have raised is the IPO pricing. Many analysts believe the offer price was at the higher end of the spectrum, discouraging potential buyers. Indian investors have become accustomed to a fair IPO bump, and the prospect of limited gains or losses has reduced the enthusiasm.
A more attractive pricing could have garnered wider support from retail and institutional investors, creating a positive buzz around the listing. Instead, the high valuation may have deterred many potential buyers, who may now wait for a more favorable entry point.
Massive Cash Outflow to Korea
Hyundai Motor India’s substantial dividend payouts to its South Korean parent company have also raised investor concerns. The large amount of money transferred from India has created a negative perception, particularly when the government actively promotes foreign direct investment (FDI) in the automotive sector.
While the company has clarified the legal nature of these transactions, the sheer amount of the cash outflow has raised questions. A more transparent communication strategy could have helped minimize concerns and highlight the positive aspects of these transactions, including Hyundai’s success in the Indian market.
Concerns About Financial Stability
The decrease in cash and bank balances due to dividend payments has also increased concerns about Hyundai’s expansion plans. Investors may be worried that the company may have to rely heavily on external borrowings to fund its future growth, potentially impacting its financial performance and stability.
While the company’s balance sheet is light on assets and the cash flow from operations is robust, which could mitigate financial stability concerns, a more proactive communication strategy would have been beneficial in addressing investor anxieties and maintaining confidence.
Prioritizing South Korean Interests
There is a perception that Hyundai Motor Company’s primary motivation for the IPO was to improve its valuation back home in South Korea. This suggests that the company may have prioritized its interests over those of Indian investors.
While the IPO could have been a win-win situation for both parties, the focus on maximizing benefits for South Korean shareholders may have alienated Indian investors. A more balanced approach considering the interests of domestic and foreign investors would have been more conducive to the IPO’s success.
Conclusion
Hyundai was among India’s most anticipated IPOs. However, its slow performance offers valuable lessons for future issuers. A well-thought-out pricing strategy, transparent communication, and a focus on aligning the interests of all stakeholders are crucial for attracting investor interest and ensuring the success of an IPO. By addressing these mistakes, Hyundai can learn from this experience and position itself for future growth in the Indian market.
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 performance of the intermediary or provide any assurance of returns to investors.
FAQ
Why did Hyundai Motor India’s IPO not receive the expected subscription levels?
Several factors contributed to the slow subscription for Hyundai’s IPO. These include the IPO’s perceived high price, the company’s substantial dividend payouts to its South Korean parent, concerns about its financial stability, and the perception that Hyundai Motor Company prioritized its interests over those of Indian investors.
What was the subscription rate for Hyundai’s IPO on Day 3?
The subscription rate for Hyundai’s IPO on Day 3 was 51%. Source: cnbcTV 18.com
How much did Hyundai Motor India raise from anchor investors?
Hyundai Motor India raised ₹8,315 crore (about 30% of the IPO size) from 225 anchor investors.
What’s Hyundai’s IPO subscription among different investor categories?
The subscription for Hyundai’s IPO was moderate across all investor categories. Retail investors subscribed 0.26 times, qualified institutional buyers (QIBs) subscribed 0.41 times, and non-institutional investors (NIIs) subscribed 0.13 times.
What lessons can be learned from Hyundai’s IPO experience?
Hyundai’s IPO experience highlights the importance of fair pricing, transparent communication, and balancing the interests of all stakeholders. By addressing these factors, future issuers can improve their chances of attracting investor interest and ensuring the success of their IPOs.
Bajaj Auto, the renowned Indian two-wheeler manufacturer, experienced a significant 9.5% drop in its stock price on Thursday, October 17th, 2024. This decline followed the release of disappointing second-quarter (Q2) FY25 financial results and a downward adjustment to the company’s full-year sales forecast.
While Bajaj Auto reported a 9.2% year-on-year increase in net profit for Q2, this figure fell short of analyst expectations. Investors were likely anticipating a stronger showing, particularly given the company’s previous track record.
Moreover, revenue surpassed the ₹13,000 crore milestone for the first time, reaching ₹13,247 crore for the quarter ending September 2024 – an increase of 20% compared to ₹10,838 crore in the same quarter last year. However, some analysts might have anticipated a more substantial growth. The profit for the quarter stood at ₹1,385 crore, reflecting a 37% decline from the ₹2,020 crore reported in the corresponding period of the previous year. Source: Moneycontrol
However, the bigger concern for investors was the company’s downward revision of its sales guidance for FY25. This suggests that Bajaj Auto is anticipating slower growth in the coming quarters than its initial projections.
Brokerages Turn Cautious
The weak Q2 performance and revised guidance have prompted several brokerages to adopt a more cautious stance on Bajaj Auto’s stock. While some analysts remain bullish on the company’s long-term prospects, they acknowledge the near-term challenges.
Brokerage Views:
Macquarie: Maintains a “neutral” rating, citing disappointing gross margins.
Jefferies: Expresses optimism on the auto sector overall but remains cautious about Bajaj Auto.
Citi issued a ‘sell’ recommendationfor Bajaj Auto with a target price of ₹7,800 per share, indicating a potential downside of 33% from the last closing price ₹11,616.
Citi was surprised by the cautious outlook on festive demand despite Vahan data showing a 12% year-on-year increase in registrations.
HSBC sets a target price of ₹14,000 per share for Bajaj Auto, highlighting its 30% growing market share.
These mixed brokerage signals have contributed to the uncertainty surrounding Bajaj Auto’s near-term prospects. Investors are likely waiting for further clarity before making any significant investment decisions.
Potential Reasons for Lower-Than-Expected Performance
Multiple factors may have affected Bajaj Auto’s lackluster Q2 performance and lowered guidance. Some potential reasons include:
The company’s Q2 performance fell slightly below expectations, primarily due to a marginal miss in average selling prices (ASPs) and gross margins.
Slowdown in Domestic Demand: The Indian two-wheeler market may be experiencing a slowdown, which could impact Bajaj Auto’s sales volumes.
Rising Input Costs: Inflationary pressures and an increase in the cost of raw materials could be squeezing profit margins.
Supply Chain Disruptions: Ongoing global supply chain disruptions might hinder the company’s ability to meet production targets.
Can Bajaj Auto Recover?
Despite the recent setbacks, Bajaj Auto remains a leading player in the Indian two-wheeler market. HSBC expects the next major disruption to come from the formalization of the e-rickshaw market, with Bajaj Auto’s potential entry playing a key role in this development.
The company enjoys a strong brand reputation, a robust distribution network, and a commitment to innovation. Here are some key factors that could influence the company’s future performance:
Demand Recovery: A potential rebound in domestic two-wheeler demand could significantly improve Bajaj Auto’s sales figures.
Cost Management: Effective cost management strategies could help mitigate the impact of rising input costs and improve profitability.
Focus on Exports: A continued focus on exports could provide a vital source of growth for Bajaj Auto.
Product Launches: Introducing new and innovative products could help Bajaj Auto maintain its competitive edge in the market.
The coming quarters will be crucial for Bajaj Auto. The company’s ability to navigate the current challenges and capitalize on growth opportunities will determine its future trajectory.
Investor Takeaway
The recent sell-off in Bajaj Auto’s stock presents an opportunity for investors to take a calculated approach. The near-term outlook appears cautious, and investors should consider their risk tolerance and investment horizon before making any decisions.
Further Considerations:
Monitor future company announcements and analyst reports for updates on Bajaj Auto’s performance.
Analyze the overall health of the Indian two-wheeler market and the broader economic landscape.
Compare Bajaj Auto’s performance with those of its competitors.
*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 recommendation or investment advice by Research & Ranking. We will not be liable for any losses that may occur. Investment in securities market are subject to market risks. Read all the related documents carefully before investing. Registration granted by SEBI, membership of BASL, and certification from NISM in no way guarantee the performance of the intermediary or provide any assurance of returns to investors.
India’s real estate sector, particularly in metropolitan regions, has seen significant price hikes in recent years. Average prices for new launches in the top 10 cities surged by 88% over the last five years, as highlighted in a recent report by PropEquity, a real estate data analytics firm.
In particular, two regions in Delhi-NCR have recorded a remarkable 145% surge in housing prices during this period. This sharp growth prompts crucial discussions about the future of real estate in other cities and its broader impact on homebuyers, investors, and the real estate sector.
According to recent data from Knight Frank, 173,241 residential units were sold across eight key markets in India during the first half of 2024. This reflects a 10.6% year-on-year increase in sales, achieving the highest half-yearly figures in 11 years.
Note: Monitored markets include Mumbai, National Capital Region (NCR), Bengaluru, Pune, Hyderabad, Ahmedabad, Kolkata, and Chennai. Source: globalpropertyguide.com
According to the data based on PropEquity, from 2019 to 2024, approximately 15,000 projects, including apartments, floors, and villas, were launched in India’s top 10 cities. These cities include Bengaluru, Chennai, Hyderabad, Kolkata, Mumbai, Thane, Navi Mumbai, Pune, Noida, and Gurugram.
Housing price rise of new launch projects across top 10 Indian cities
In the past five years, two key locations within the Delhi-NCR region, namely Greater Noida and Noida Extension, have experienced unprecedented increases in property prices. This price rise is primarily attributed to several factors, including infrastructure development, improved connectivity, and rising demand for residential spaces. As per reports, the cost of new housing projects in these areas has surged by more than 145%, reflecting the growing attractiveness of these areas for buyers and developers.
Key Highlights of the Report
Gurugram’s Major Price Surge
Gurugram saw the highest price increase for newly-launched housing, rising from ₹7,500 per square foot in 2019 to ₹19,500 per square foot in 2024.
This marks a significant 160% increase over five years.
Noida’s Rapid Growth
Housing prices in Noida surged from ₹6,500 per square foot in 2019 to ₹16,000 per square foot in 2024.
This represents a 146% rise in five years.
Bengaluru’s Notable Price Increase
Bengaluru’s housing prices increased from ₹5,051 per square foot in 2019 to ₹10,020 per square foot in 2024.
This indicates a 98% rise over the five years.
Hyderabad’s Steady Rise
Hyderabad’s prices climbed from ₹4,686 per square foot in 2019 to ₹8,500 per square foot in 2024.
This reflects an 81% growth in five years.
Chennai’s Significant Growth
Housing prices in Chennai jumped from ₹4,451 per square foot in 2019 to ₹8,023 per square foot in 2024.
This marks an 80% rise during the same period.
Mumbai’s Moderate Price Increase
Mumbai experienced a more modest 37% price rise, moving from ₹25,820 per square foot in 2019 to ₹35,500 per square foot in 2024.
Factors Influencing Real Estate Prices Across Cities
Various factors shape the price trends in different cities, some common across regions and others specific to the local market dynamics.
Lockdown Savings: Increased savings during lockdowns and minimal income disruptions among middle- and high-income groups have fueled demand in India’s residential real estate market.
Economic Growth: A robust economic growth outlook has further boosted interest in residential properties.
Infrastructure Development: Infrastructure development, including new roads, metro lines, and airports, plays a significant role in boosting property prices. Areas with better connectivity and amenities attract more buyers and investors.
Urban Expansion: As Delhi’s central regions become overcrowded and expensive, many homebuyers and investors have shifted their focus to the peripheral areas of NCR, pushing up property prices.
Demand-Supply Gap: With increased demand for residential properties and limited land availability, prices have been driven upward due to the mismatch between supply and demand.
NRI Interest: Increased investment from non-resident Indians (NRIs) has contributed to demand.
Stock Market Gains: Rising stock market performance has created wealth, further fueling property investments.
HNIs and UHNIs Engagement: High-net-worth individuals (HNIs) and ultra-high-net-worth individuals (UHNIs) actively seek real estate opportunities.
Real Estate Regulations: Government regulations, such as RERA and the implementation of the Goods and Services Tax (GST), have significantly impacted the real estate market. These regulations have increased transparency and improved buyer confidence, increasing demand and rising prices.
Average price per square foot of new housing project in Mumbai, Noida, Gurugram in 2024
City
Average Price/Sq.ft
Mumbai
Rs. 35,500
Gurugram
Rs. 19,500
Noida
Rs. 16,000
Mumbai remains the priciest city in terms of per-square-foot pricing. Notably, in 2019, Mumbai was the only city with average prices for new launch projects surpassing ₹10,000 per square foot. By 2024, this threshold had been crossed by all but three cities: Hyderabad, Chennai, and Kolkata.
Impact of Housing Price Surge on the Real Estate Sector
1. Homebuyers’ Dilemma
Rising property prices have made it increasingly challenging for potential homebuyers to find affordable housing. While the increased demand in areas like Greater Noida and Noida Extension reflects the popularity of these regions, it also limits options for middle-income groups. Many buyers are now forced to either increase their budget or look for properties in more remote locations.
2. Real Estate Investment
On the other hand, the price rise has been beneficial for investors. Those who invested in these areas five years ago have seen substantial returns, with property values appreciating significantly. The steady price increase will likely attract more investors to these regions as they seek to capitalize on future growth.
3. Developer Incentives
The booming real estate prices have encouraged developers to launch new Greater Noida and Noida Extension projects. With the possibility of higher profits, developers are focusing on delivering quality projects with modern amenities, catering to the growing demand for luxury and premium housing in these areas.
5. Shift Towards Suburban Areas
As property prices in metropolitan cities continue to rise, many buyers opt for homes in suburban areas with relatively lower prices. This trend has been particularly evident in cities like Delhi-NCR, Mumbai, and Bengaluru, where buyers move to peripheral areas for more affordable options.
6. Luxury Housing Segment Growth
While the demand for affordable housing has increased, there has also been a growing demand for luxury and premium housing in metropolitan cities. Developers are now focusing on high-end projects catering to affluent buyers willing to pay a premium for better amenities and locations.
7. Impact on the Rental Market
The surge in property prices has also affected the rental market, with rental rates rising in tandem with property values. In cities like Mumbai and Bengaluru, rental rates have increased significantly over the past few years, making it more expensive for tenants to find affordable accommodation.
What’s Next For The Realty Sector?
The sharp rise in housing prices in Delhi-NCR and other cities reflects the evolving dynamics in India’s real estate sector. As infrastructure development and urban expansion continue, property prices may rise further in the coming years. However, the market is also likely to see increased demand for affordable housing, with more buyers looking for homes that fit their budget.
The real estate market offers significant opportunities for investors, especially in regions that are still undergoing development. However, homebuyers face the challenge of finding affordable housing options as prices continue to rise.
As the real estate market continues to evolve, it will be important for buyers and investors to monitor local trends, government policies, and infrastructure developments that can influence property prices in their respective cities.
*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 recommendation or investment advice by Research & Ranking. We will not be liable for any losses that may occur. Investment in securities market are subject to market risks. Read all the related documents carefully before investing. Registration granted by SEBI, membership of BASL, and certification from NISM in no way guarantee the performance of the intermediary or provide any assurance of returns to investors.
FAQ
Why has the real estate sector seen such a significant price hike recently?
The surge in real estate prices can be attributed to several factors. Firstly, the pandemic-induced work-from-home trend has shifted housing preferences, with buyers seeking larger homes with amenities like private gardens and study spaces. This increased demand has outpaced supply, driving prices up. Secondly, low interest rates have made homeownership more affordable, stimulating demand. Additionally, government initiatives like affordable housing schemes and infrastructure development projects have contributed to the growth of the real estate market.
Which cities have experienced the most significant price hikes in the past five years?
Delhi-NCR has witnessed the most substantial price increase, with a staggering 145% growth. Other cities with significant appreciation include Mumbai, Bengaluru, Hyderabad, and Pune. These cities have benefited from strong economic growth, job creation, and infrastructure development, making them attractive to homebuyers and investors.
What are the implications of such a significant price hike for homebuyers and investors?
While the price hike offers opportunities for investors to capitalize on the market’s growth, it can be challenging for first-time homebuyers. The rising cost of living and limited affordability may make it difficult for some to enter the market. However, options like affordable housing schemes and government-backed loans can help mitigate the impact.
What are the prospects for the realty sector in India?
The Indian real estate market is poised for growth, driven by factors such as urbanization, rising incomes, and government initiatives. However, regulatory changes, economic fluctuations, and geopolitical events could impact the market’s trajectory. Buyers and investors must stay informed about market trends and consult with experts to make informed decisions.
Are you closely watching the stock market and wondering why Mazagon Dock Shipbuilders continue to rise while other stocks struggle? This company has been on a remarkable upward trajectory, delivering returns that would make any investor take notice. Over the past year, Mazagon Dock has rewarded its shareholders with an astonishing 100% return. But what’s even more impressive is the 1500%+ growth it has achieved over the last three years. What factors are driving this extraordinary performance in the stock market?
On Tuesday, Mazagon Dockyard’s share price saw a significant jump of 7.47%, reaching a high of ₹4600 after opening at ₹4289.5. This happened even as broader market sentiment remained weak, showcasing the stock’s resilience. The sharp rise in the share price boosted the company’s market capitalization to ₹91,381 crore, further cementing its position as one of the top performers in the defense and shipbuilding sector.
In the context of its performance, Mazagon Dock has consistently outpaced market trends, showing sustained growth in both stock value and financial health. The stock’s designation as a multibagger—delivering returns far beyond typical market benchmarks—highlights the company’s potential and its ability to generate impressive profits for its shareholders.
Mazagon Dock Stock Performance & Technical Indicators
After reaching a high of ₹5860, Mazagon Dock’s stock price fell to ₹3852 during a market correction. However, the stock is now showing signs of recovery, with strong buying activity. It has moved above important technical levels, specifically ₹4315, which indicates that the stock might continue to rise in the near future.
In simpler terms, the stock has good support around ₹4200 and ₹4000, meaning it’s less likely to fall below these levels in the short term. On the upside, the ₹4800-₹4900 range is being watched closely. If the stock can break through this range, it may see further upward movement. Source: Business Today
Check out performances of other stocks on our STOCKS SCREENER
Mazagon Dock’s Strong Business Fundamentals
Mazagon Dock Shipbuilders Limited (MDL) is not just a stock with impressive numbers but also a company with a rich legacy. Established in 1774, MDL has built over 800 vessels since 1960, including warships, submarines, and offshore platforms. Recognized for its critical role in India’s defense sector, MDL was awarded the prestigious ‘Navratna’ status in June 2024, marking its position as one of India’s top-performing public sector enterprises. This recognition underscores MDL’s strong financial health and strategic importance in strengthening India’s defense capabilities.
Recent Developments Fueling Growth for Mazagon Dock
A string of new projects and contracts is also contributing to Mazagon Dock’s growth trajectory:
1. AI-based Security Project for MAHAGENCO:
MDL secured a ₹121.67 crore contract from Maharashtra State Power Generation Company Limited (MAHAGENCO) to implement an advanced AI-based security system at its power plants in Uran and Pophali. This government project is slated for completion by October 2025, adding to MDL’s growing list of prestigious contracts.
2. Multipurpose Cargo Vessels for Navi Merchants, Denmark:
MDL recently began production on its first Multipurpose Cargo Vessel (MPV) under a $86.05 million contract. These hybrid propulsion vessels are designed for icy conditions and will meet strict environmental standards. The first of six vessels is expected to be delivered by April 2026, further expanding MDL’s international footprint.
Mazagon Dock’s financial performance has also been good, contributing to its stock market success. According to the Q1FY25 results, the company’s net sales rose 8.5% to ₹2,357.02 crore, while net profit surged 121.45% to ₹696.10 crore compared to the same quarter last year. On an annual basis, the company saw a 24% increase in net sales to ₹10,568.05 crore, with net profit rising by 73% to ₹1,936.97 crore in FY24 compared to FY23.
Moreover, the company remains debt-free as of June 30, 2024, adding to investor confidence in its financial health. The order book stands at an impressive ₹36,839 crore, ensuring continued revenue flow in the near future. Source: Financial Results
Institutional Confidence
Institutional investors have also shown increasing confidence in Mazagon Dock’s potential. As of June 2024, Foreign Institutional Investors (FIIs) increased their stake to 2.44%, while Domestic Institutional Investors (DIIs) raised theirs to 0.83%, indicating rising institutional interest in the company’s stock.
Conclusion
Mazagon Dock Shipbuilders has stood out in the Indian stock market, showing resilience and growth even as broader market trends have been less favorable. The stock has delivered significant returns, driven by a combination of factors such as robust technical indicators, strong financial performance, and a series of new contracts and projects that are expected to contribute to future growth.
Looking ahead, the ₹4800-₹4900 price range is seen as a key resistance level. Market watchers may observe how the stock performs around this range, as breaking through these levels could indicate further upward movement. As the company continues to execute its plans, maintain strong financial health, and deliver on its order book, it remains an important stock to follow in the Indian defense and shipbuilding sector. Investors will likely keep a close eye on whether Mazagon Dock can sustain its current momentum amidst changing market conditions.
*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 recommendation or investment advice by Research & Ranking. We will not be liable for any losses that may occur. Investment in securities market are subject to market risks. Read all the related documents carefully before investing. Registration granted by SEBI, membership of BASL, and certification from NISM in no way guarantee the performance of the intermediary or provide any assurance of returns to investors.
The second quarter of the fiscal year 2025 (Q2FY25) has concluded, and with it, a wave of earnings reports from various companies. Among the most anticipated releases were those from Reliance Industries, Network 18, PVR Inox Ltd, Orient Hotels, and Avenue Supermarts Ltd. While some companies experienced a decline in profits, others surprised the stock market with their impressive performance.
Let’s delve into the key highlights of Q2FY25 earnings. We’ll analyze the hits, misses, and surprises that emerged from these reports.
Reliance Industries Limited is a multinational conglomerate. It has diversified interests in various sectors, including petrochemicals, refining, retail, telecom, and technology. The company is one of India’s largest corporations and a major player in the global energy and consumer goods markets.
Reliance Industries, India’s leading conglomerate in oil, telecom, and retail, reported revenue of ₹231,535 crore for the quarter ending September 2024. This marks a 0.15% decrease compared to the ₹231,886 crore recorded in the same quarter of September 2023.
Additionally, gross profit dropped by 7%, while net profit declined by 3%, amounting to ₹19,101 crore this quarter, down from ₹19,820 crore in the corresponding period last year.
PVR Inox Ltd. is the largest multiplex chain in India. It operates a network of cinemas across the country, offering a premium movie-watching experience. The company is known for its state-of-the-art theaters, comfortable seating, and diverse range of films. PVR Inox has played a significant role in popularizing the multiplex culture in India and has been at the forefront of the country’s growing entertainment industry.
PVR Inox reported revenue of ₹1,622 crores for the quarter ending September 24, a 21% decline from the same quarter last year. The company incurred a loss of ₹12 crores, contrasting sharply with the notable net profit of ₹166 crores achieved in the quarter ending September 23.
Sterling Wilson Renewable Energy Ltd. is a leading global EPC (Engineering, Procurement, and Construction) company specializing in renewable energy projects. It offers comprehensive solutions for solar power plants, including design, engineering, construction, and operation and maintenance services.
Sterling Wilson marked a revenue of ₹1,030 crore for the quarter ending September 2024, reflecting a 35% rise from the ₹760 crore posted in the same quarter of September 2023. Moreover, gross profit soared by an impressive 566%, and net profit surged by 116%, reaching ₹9 crore this quarter, compared to a loss of ₹55 crore in the corresponding period last year.
Alok Industries Ltd. is a leading textile manufacturing company in India. It specializes in producing a wide range of fabrics, including denim, cotton, and polyester. Alok Industries has a strong global presence and supplies its products to major brands and retailers worldwide.
Alok Industries registered revenue of ₹886 crore for the quarter ending September 2024, a 34% decline from the ₹1,359 crore recorded in the same quarter of September 2023. Additionally, gross profit fell by 172%, and the company posted a loss of ₹262 crore, widening from the ₹175 crore loss in the corresponding period last year.
Avenue Supermarts Ltd. is the parent company of the popular supermarket chain DMart. It operates a network of hypermarkets and supermarkets across India, offering a wide range of products at competitive prices. DMart is known for its value-for-money offerings and has gained a significant market share in the Indian retail industry.
Avenue Supermarts Ltd. reported a revenue of ₹14,445 crore for the quarter ending September 2024, marking a 14% increase from the ₹12,624 crore recorded in the same quarter of September 2023. Gross profit rose by 6%, while net profit climbed by 5% to ₹659 crore this quarter, compared to ₹623 crore in the corresponding period last year.
Oriental Hotels Ltd. is a leading hospitality company in India. It operates a chain of luxury hotels, including the iconic Taj Mahal Hotel in Mumbai. Oriental Hotels is known for its exceptional service, luxurious accommodations, and rich heritage. The company has a strong presence in key tourist destinations.
Orient Hotels registered a revenue of ₹103 crore for the quarter ending September 2024, reflecting a 13% increase from the ₹91 crore recorded in the same period of September 2023. Gross profit also grew by a significant 21%, reaching ₹17 crore compared to ₹14 crore in the same quarter last year. However, the company did not report any net profit for this quarter.
Network18 Media & Investments Ltd. is a leading media conglomerate in India. It operates a diverse portfolio of television channels, digital platforms, and print publications. Network18 is known for its news channels, including CNN-News18 and CNBC TV18, which are popular among viewers.
Network 18 reported a revenue of ₹1,855 crore for the quarter ending September 2024, showing a slight decrease of 2% from the ₹1,866 crore recorded in the same period of September 2023. The company posted a loss of ₹188 crore for this quarter, compared to a ₹148 crore loss in the corresponding quarter last year.
Just Dial Ltd. is a leading local search and information platform in India. It provides users with a comprehensive database of businesses, services, and products across various categories. Just Dial’s user-friendly interface and extensive listings have made it a popular choice for people looking for information about local businesses and services.
Just Dial reported a revenue of ₹285 crore for the quarter ending September 2024, reflecting a 9% rise from the ₹261 crore recorded in the same period of September 2023. Gross profit surged by 89%, and net profit saw an impressive 113% increase, reaching ₹154 crore this quarter, compared to ₹72 crore in the corresponding period last year.
Premier Polyfil Ltd. is a leading manufacturer of nonwoven fabrics. It produces a wide range of products, including geotextiles, industrial fabrics, and filtration media. Premier Polyfil’s products are used in various industries, including construction, agriculture, and automotive.
Premier Polyfil reported a revenue of ₹79 crore for the quarter ending September 2024, marking a 3% increase from the ₹76 crore recorded in the same period of September 2023. Gross profit jumped by 42%, while net profit saw a significant 60% rise, reaching ₹8 crore this quarter, compared to ₹5 crore in the same quarter last year.
*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 recommendation or investment advice by Research & Ranking. We will not be liable for any losses that may occur. Investment in securities market are subject to market risks. Read all the related documents carefully before investing. Registration granted by SEBI, membership of BASL, and certification from NISM in no way guarantee the performance of the intermediary or provide any assurance of returns to investors.
FAQ
What is the significance of Q2FY25 earnings reports?
Q2FY25 earnings reports provide valuable insights into the financial performance of companies during the second quarter of the fiscal year ending in March 2025. These reports help investors assess a company’s profitability, growth prospects, and overall financial health.
Which companies are worth following in Q2FY25 earnings?
There are 26 companies that investors should closely watch during the Q2FY25 earnings season. These include prominent names across various sectors such as technology, banking, pharmaceuticals, and consumer goods. Keeping track of these companies’ performance can help investors identify potential investment opportunities or risks.
What are the key factors to look for in Q2FY25 earnings reports?
When analyzing Q2FY25 earnings reports, investors should focus on several key factors. These include revenue growth, profit margins, earnings per share (EPS), cash flow, and management’s guidance for the future. Additionally, comparing a company’s performance to industry benchmarks and its own historical data can provide valuable insights.
Are there any surprises or unexpected trends in Q2FY25 earnings?
Q2FY25 earnings season has seen some surprises and unexpected trends. Some companies have exceeded market expectations with strong financial results, while others have fallen short. It’s important to stay updated on these developments as they can significantly impact stock prices and market sentiment.
With the festive season in full swing and e-commerce platforms thriving, have you wondered why DMart’s parent company, Avenue Supermarts (DMart) share price plummet by 9.47% in early trade on Monday?
The stock hit a low of Rs 4,139 on the NSE, down from its previous close of Rs 4,572. This sharp drop has left many investors questioning what went wrong for one of India’s leading retail chains. Let’s look into the five key factors behind this disappointing performance in the stock market. [Source: NSE]
Revenue vs. Expectation: Revenue for the Q2 results stood at Rs.14,050.32 crore, a 14% rise from Rs 12,307.72 crore last year. However, this fell short of analyst expectations, with the market hoping for stronger growth.
Profit Decline: The 12% sequential drop in profit after tax (PAT) compared to the previous quarter caught investors off guard. This decline in profitability overshadowed the YoY revenue rise, indicating inefficiencies and rising costs.
Brokerage Downgrades: Following these results, several brokerages, including Bernstein, downgraded DMart’s stock with target prices as low as Rs 3,702, further shaking investor confidence. The underperformance reflects that even though the company is growing, it is not growing fast enough to meet market expectations.
The rise of quick commerce platforms like Swiggy Instamart, Dunzo, and Zepto has intensified competition in DMart’s core metro markets.
Shift in consumer preferences: These platforms offer ultra-fast grocery deliveries (within 10-30 minutes), making them an attractive option for urban customers seeking convenience. As a result, DMart has lost some foot traffic and customer share, particularly in metropolitan areas.
Impact on DMart Ready: Although DMart has its own online service, DMart Ready, it has struggled to match the rapid fulfillment times offered by these competitors. The management has acknowledged that quick commerce is having a noticeable effect on the company’s high-performing metro stores.
Long-term threat: The quick commerce model has disrupted traditional brick-and-mortar retail, and DMart will need to respond swiftly and strategically to regain its competitive edge.
3. Slow Revenue Growth
DMart’s revenue growth has significantly decelerated compared to its past performance.
Revenue Sluggishness: According to Bernstein, DMart’s revenue growth was the slowest in four years, and like-for-like (LFL) growth was the weakest in three years, at just 5.5% in Q2. This is a sharp decline from the company’s consistent growth of over 10% in previous years.
Maturity of Older Stores: Part of this slowdown is due to the natural maturity of older stores. As DMart’s early stores reach capacity, their contribution to growth has diminished, dragging down the overall performance.
Comparing Quarter-on-Quarter: In Q1FY25, DMart posted a 9.1% LFL growth, but in Q2, this dropped to 5.5%, marking a worrying trend of deceleration.
4. Rising operational costs
DMart is grappling with rising costs as it scales up operations and invests in service improvements.
Higher Employee Costs: In an effort to improve customer experience and expand future capabilities, DMart’s employee costs have increased more than expected, cutting into profitability.
EBITDA Margin Squeeze: The company’s EBITDA margin contracted by 27 basis points (bps) YoY, reflecting the impact of higher overheads. These expenses are tied to better service offerings, but the immediate financial impact has been negative.
Modest Margin Expansion: On the positive side, general merchandise and apparel sales recovery led to a slight expansion of gross margins by 21 bps YoY. However, this was not enough to offset the hit from operational costs.
Ongoing Investment: While these cost increases aim to strengthen DMart’s long-term positioning, they are weighing on short-term profitability, a concern for investors looking for immediate returns.
5. Slowdown in store additions
Store expansion, a critical part of DMart’s growth strategy, slowed down in Q2.
Fewer Store Openings: DMart opened six new stores in Q2, compared to nine in the same period last year. This brought the total store count to 377. While the company typically opens more stores in the second half of the fiscal year, the slower pace in the first half has raised concerns about overall growth.
Growth Potential: Analysts, including Bernstein, remain hopeful that DMart will reach its target of adding 45 new stores by the end of FY25. The company has demonstrated its ability to expand aggressively, driving revenue growth.
Future Outlook: DMart’s ability to return to a 20% growth trajectory depends on its success in adding new stores and increasing retail area. Store expansion remains critical for DMart, as it allows the company to penetrate new markets and reach more customers.
What Lies Ahead for DMart?
Despite the current challenges, DMart remains a key player in India’s retail space. Analysts believe the company could return to its previous growth trajectory if it manages to overcome competition from quick commerce platforms and continues to focus on store expansion. However, these efforts may take 3-5 quarters to reflect in DMart’s financials fully.
Conclusion
DMart’s 9.47% drop in share price reflects several pressing challenges, from disappointing earnings to rising competition and operational inefficiencies. While the company remains a strong player in India’s retail sector, it must address these issues head-on to regain investor confidence and maintain its growth momentum. How DMart adapts to the rapid rise of quick commerce and manages its cost structure will be crucial in determining its performance in the coming quarters.
*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 recommendation or investment advice by Equentis – Research & Ranking. We will not be liable for any losses that may occur. Investment in securities market are subject to market risks. Read all the related documents carefully before investing. Registration granted by SEBI, membership of BASL, and certification from NISM in no way guarantee the performance of the intermediary or provide any assurance of returns to investors.
The landscape of startup funding is experiencing a significant shift. While venture capital (VC) funding grabbed attention in recent years, there’s now a rise in startup IPOs with more “Offer for Sale” (OFS) portions. This shows a growing focus on investor exits as new capital becomes harder.
The increase in the “Offer for Sale” (OFS) portions shows that investors are eager to exit and cash out their investments. They are also achieving this by selling shares through pre-IPO secondary rounds, which allows them to generate liquidity before the company officially goes public. This trend highlights the pressure on investors to secure returns as their investment cycles end.
What is OFS
Before diving into the details, let’s first understand OFS. OFS, or Offer For Sale, is a way for promoters of public companies to sell their shares directly to the public through a bidding process on the stock exchange. This method allows them to reduce ownership and meet the minimum public shareholding requirements.
Increase in Startup IPO Offers-for-Sale Driven by Fund Cycles and Investor Exits
In 2021-22, offers-for-sale (OFS) by investors made up 48% of startup IPO share sales by value, compared to 63.3% in the broader IPO market.
As of FY25 (until 4 October), OFS by investors has risen to 64% of startup IPO share sales, the highest in four years, versus 51.21% in the overall IPO market.
The rise in OFS is largely due to fund managers nearing the end of their fund lifecycle, requiring them to sell large stakes in IPOs to return money to investors.
This reduces the capital startups can raise from IPOs for growth but offers more opportunities for new investors as India’s stock market hits record highs.
According to the Prime Database, startups raised ₹5,385 crore through OFS and ₹3,039 crore in fresh capital in FY24.
Five of eight startups that went public in September 2023 had a higher OFS component.
Indian startups raised ₹1,359 crore in fresh capital and ₹1,681 crore via OFS in FY24.
In FY22, startups raised ₹21,680 crore in fresh capital and ₹21,146 crore through OFS.
EasyMyTrip, Nazara Technologies, and Cartrade Tech, which went public in 2021, issued no fresh capital, focusing instead on investor exits.
Unicommerce eSolutions followed a similar strategy in its August 2023 IPO.
Zomato’s 2021 IPO saw investors sell shares worth ₹375 crore, while the company raised ₹9,000 crore through fresh share issues.
Unlike Zomato, most startup IPOs in 2021 favored offers-for-sale (OFS) as investors’ primary exit strategy.
According to NSE data, startups like Mamaearth, Go Digit, Awfis, Ixigo, and FirstCry saw a higher OFS portion compared to fresh capital issues.
According to its draft prospectus, Swiggy’s upcoming IPO will also follow this trend, with a larger OFS component of ₹6,664 crore compared to a fresh issue of ₹5,500 crore. Source: Mint
Indian Startup IPOs Over the Last Years
Name
Opening Date
OFS/Total Issue Amount %
Unicommerce
August 6, 2024
100
Ixigo
June 10, 2024
84
Awfis
May 22, 2024
79
Mamaearth
October 31, 2023
79
Firstcry
August 6, 2024
60
Digitinsurance
May 15, 2024
57
Zaggle
September 14, 2023
30
Yatra
September 15, 2023
22
Note: The figures are a percentage of the OFS for the total issue. Source: Mint
Decoding the Shift
Exits are crucial for generating investment returns for venture capitalists and other early-stage investors. There are three primary ways for them to achieve an exit:
IPO: A company goes public, allowing investors to sell their shares on a stock exchange and potentially realize significant gains.
Mergers and acquisitions (M&A): A larger, established company acquires the startup, providing investors with liquidity through the sale of their shares.
Secondary Transactions: Existing investors sell their shares to new investors before an IPO, allowing them to exit their investments early.
Historically, IPOs have been a less common exit strategy for Indian startups than the US or China. However, the recent surge in IPO activity coupled with high OFS portions indicates a growing emphasis on exits for investors.
Unveiling the 3 Reasons Behind the Rush for Exits
Several factors are contributing to the increased focus on exits:
Shifting Market Conditions: The global economic slowdown and rising interest rates have led to a more cautious approach from VC firms. This has caused a decline in new funding rounds for startups, particularly in later stages.
Maturing Portfolio Companies: Many startups that received significant funding in the past are now reaching a stage where an IPO or acquisition becomes a viable exit strategy.
Investor Liquidity Needs: VC funds typically have a finite lifespan and must generate returns for their Limited Partners (LPs) – the investors who provide them with capital. Exits through IPOs or secondary transactions allow them to do so.
A Signal of Investor Sentiment
The significant increase in the size of OFS portions within recent startup IPOs is particularly noteworthy. An OFS allows existing investors to sell a portion of their shares during the IPO. This indicates a strong desire among early-stage investors to achieve liquidity and potentially lock in profits, especially in a market with more uncertainty.
Potential Implications for the Startup Ecosystem
While the increased focus on exits can be seen as a positive sign for investor returns, it could also have some broader implications for the startup ecosystem:
Impact on New Funding: A focus on exits may reduce the amount of capital available for new startups. This could have a chilling effect on innovation and entrepreneurship, especially in riskier sectors.
Valuation Concerns: A large influx of shares through OFS could potentially put downward pressure on a startup’s post-IPO stock price, making it more challenging for companies to raise additional capital after going public.
Importance of Sustainable Growth: There’s a risk that the focus on exits may overshadow startups’ long-term growth prospects. Investors and founders must balance achieving liquidity and building sustainable businesses that create value over a long period.
Conclusion
In the 1990s, companies going public focused entirely on raising fresh capital through IPOs to fund business expansion, as there were few other funding options in India. This trend shifted with the rise of alternative investment funds—private equity, venture capital, and angel investors—who provided companies with funding in private markets at high valuations.
The current dynamics of the startup funding landscape necessitate a thoughtful approach. While exits are critical for generating returns and attracting new investors, ensuring a steady flow of capital for promising new ventures is equally important. The success of the Indian startup ecosystem will depend on striking a balance between investor liquidity needs and fostering sustainable long-term growth for innovative companies.
*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 recommendation or investment advice by Research & Ranking. We will not be liable for any losses that may occur. Investment in securities market are subject to market risks. Read all the related documents carefully before investing. Registration granted by SEBI, membership of BASL, and certification from NISM in no way guarantee the performance of the intermediary or provide any assurance of returns to investors.
FAQs
What are the key factors driving the shift towards OFS among startups?
Several factors are contributing to the rise of OFS among startups. First, the volatile economic conditions have made it challenging for startups to secure growth funding at favorable terms. Second, many startups seek liquidity to exit their investments and realize returns, especially after years of growth and development. Third, OFS can potentially result in higher valuations for startups, as investors may be willing to pay a premium to acquire shares in a promising company.
How does OFS compare to traditional methods of raising capital, such as venture capital or private equity?
OFS offers several advantages over traditional methods of raising capital. It can provide a quicker and more efficient way for startups to exit investments and realize profits. Additionally, OFS can help startups achieve higher valuations by tapping into a broader pool of investors. However, OFS also comes with certain risks, such as market volatility and the potential to dilute ownership.
What are the potential challenges and risks associated with OFS for startups?
While OFS offers several benefits, it also has potential challenges and risks. Market volatility can significantly impact the success of an OFS, and startups may not achieve their desired valuation. Additionally, OFS can lead to a dilution of ownership for existing shareholders. To mitigate these risks, startups should carefully consider their timing and pricing strategies for an OFS and work with experienced advisors to ensure a successful execution.
What a weekend for global markets! With so many factors impacting stock indices worldwide, you might wonder what exactly changed and how it will affect the market this week. From China’s deflationary pressures to the US expanding sanctions on Iran, here’s a breakdown of the 12 most critical market drivers that will shape investor sentiment as trading begins.
1. China’s Debt-Driven Stimulus
China pledged to increase debt issuance to revive its slowing economy significantly. The government plans to help local authorities manage their debt, offer subsidies to low-income households, and support the property market. However, despite these pledges, Beijing’s lack of concrete measures over the weekend left analysts underwhelmed. Investors had hoped for more aggressive steps to stimulate growth. This uncertainty will continue to weigh on market sentiment.
2. China’s Inflation Slows
China’s inflation data was disappointing, with the consumer price index (CPI) rising just 0.4% in September, below expectations. Meanwhile, producer prices fell by 2.8% year-over-year, the steepest decline in six months. This deepening deflationary trend highlights the challenges facing China’s economy, which could affect its trading partners and global commodity demand, including oil and metals.
Asian markets began the week mainly in the green. South Korea’s Kospi rose 0.63%, while the Kosdaq index slipped slightly by 0.43%. Japan’s markets were closed due to a holiday. Meanwhile, Hong Kong’s Hang Seng index futures pointed to a higher opening.
These movements reflect an optimistic tone from the region ahead of critical economic data releases that will come later in the week. This regional momentum is expected to have a positive ripple effect on global markets, including India.
4. Gift Nifty Signals a Positive Start
The Gift Nifty traded around 25,100 in the pre-market session, marking a premium of nearly 50 points from the Nifty futures’ previous close. This indicates that the Indian market might open with a positive bias on Monday. This strength from global cues will offer a cushion despite domestic challenges.
The U.S. stock market ended Friday on a high note, with the Dow Jones Industrial Average jumping 409.74 points (0.97%) to 42,863.86 and the S&P 500 gaining 34.98 points (0.61%) to close at 5,815.03. The Nasdaq Composite also finished up by 0.33%.
Notable stock movers included a sharp 8.78% decline in Tesla, while banks like JPMorgan Chase surged 4.4%, Wells Fargo climbed 5.6%, and BlackRock rose 3.6%. Wall Street’s gains may help set a positive tone for global markets at the start of the week, particularly as investors digest economic data and corporate earnings.
6. US Producer Price Index Holds Steady
The U.S. producer price index (PPI) remained unchanged in September, signaling a stable inflation outlook. This followed a 0.2% increase in August. Year-over-year, the PPI rose 1.8% in September, down slightly from 1.9% in August.
Although economists expected a minor increase of 0.1% for September, the unchanged PPI suggests that inflationary pressures might not be as significant as earlier feared, potentially keeping the Federal Reserve from tightening monetary policy more aggressively.
7. US Consumer Sentiment Weakens
Consumer sentiment in the U.S. slipped in October, with the University of Michigan’s index falling to 68.9 from September’s 70.1. This decline reflects ongoing concerns about high prices and the overall economic outlook. While this dip in sentiment might not immediately affect markets, it could signal potential headwinds for consumer spending.
8. US Expands Sanctions on Iran
On Friday, the U.S. expanded sanctions against Iran, targeting its “ghost fleet” that moves illicit oil. This move follows Iran’s Oct. 1 attack on Israel. The oil and gas rig count in the U.S. rose by one last week, bringing the total to 586. This marks the first increase in four weeks. The sanctions and a slight uptick in rig activity could affect global energy markets, depending on how tensions escalate in the Middle East.
9. Hurricane Milton’s Mixed Impact
Hurricane Milton temporarily affected U.S. gasoline demand, as evacuations boosted short-term consumption. However, weak demand dominated the fundamentals. BP reported a $600 million drop in Q3 profits due to weak refining margins. This suggests that, despite the hurricane’s short-term impact, the broader trend in oil consumption remains sluggish, especially amid global uncertainties.
10. Oil Prices Slip
Oil prices fell in response to weak Chinese inflation data. Brent crude futures declined by 1.44% to $77.90 per barrel, while U.S. West Texas Intermediate crude dropped 1.43% to $74.48 per barrel. China’s slowing demand for oil continues to weigh on prices, adding to broader concerns about global economic growth.
11. Gold Prices Decline
Gold prices dipped as the U.S. dollar strengthened. Spot gold fell by 0.4% to $2,646.75 per ounce, while U.S. gold futures dropped 0.5% to $2,663.90. This decline comes after gold prices rose 1% in the previous session. A strong dollar typically dampens demand for gold, which is priced in dollars, making it more expensive for foreign investors.
12. FII Selling Continues
Foreign institutional investors (FIIs) continued to sell Indian shares, net selling ₹4,162.66 crore worth of equities on Friday. In contrast, domestic institutional investors (DIIs) net purchased shares worth ₹3,730.87 crore. In October, FIIs sold a total of ₹58,394.56 crore worth of Indian equities, reflecting their cautious stance amid global uncertainties.
Investors should brace for volatility driven by global and domestic factors as the market gears up for another week. From China’s deflation to U.S. sanctions on Iran and FII sell-offs, these 12 key market drivers will likely set the tone for trading in the coming days. Monitor the macroeconomic data and global cues to better navigate these unpredictable markets.
*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 recommendation or investment advice by Research & Ranking. We will not be liable for any losses that may occur. Investment in securities market are subject to market risks. Read all the related documents carefully before investing. Registration granted by SEBI, membership of BASL, and certification from NISM in no way guarantee the performance of the intermediary or provide any assurance of returns to investors.
Ethos Share Price Jumps 105%. The luxury market has experienced a resurgence, with increased demand across segments such as watches, apparel, automobiles, jewelry, and high-end real estate. Amid this rise, a relatively lesser-known company is reaping significant rewards from the booming luxury sector. This under-the-radar player, Ethos, has carved out a strong niche, leveraging favorable market conditions and catering to affluent consumers seeking premium products and services.
Growing Population of Ultra-Rich in India
India’s ultra-wealthy population is expanding rapidly. The number of ultra-high-net-worth individuals (those with assets exceeding $30 million) is expected to surge by 58.4% over the next five years. Additionally, the high-net-worth population (those with assets over $1 million) is projected to double, reaching 1.65 million by 2027. This growth reflects the increasing concentration of wealth among India’s elite and highlights the country’s rising economic power.
India’s Economic Growth Fuels Luxury Demand
As the world’s fifth-largest economy, India’s wealth is growing rapidly, with projections for even more growth by 2030. Rising wealth is expanding the upper-middle class, driving significant demand for luxury goods, including watches. The premium watch market is expected to grow from ₹6,610 crore in FY20 to ₹11,890 crore by FY25, with a 12.5% compound annual growth rate (CAGR).
The International Monetary Fund (IMF) forecasts that India will be the only major economy to grow above 6% in 2024 and 2025, double the global average of 3.2%, and surpassing China’s growth rate. If this trend continues, India could emerge as the world’s third-largest economy by 2030, as the World Economic Forum projected.
As India’s economy expands, its middle class and consumer spending also rise.
Deloitte reports that one in four households currently falls into the upper-middle to high-income categories, a figure expected to double by 2030.
This increase in wealth presents significant growth potential for luxury markets, including watches, jewelry, cars, and fashion.
High-end watches, priced above ₹10 lakh, represent the fastest-growing segment, expected to more than double in value.
Premium Watches Outshine Mass Market
It is important to note that the smartwatch market is currently experiencing mixed fortunes. While sales of mass-market smartwatches have declined by nearly 28% and average selling prices have dropped, the demand for premium smartwatches, including luxury watches and advanced models from brands like Apple and Samsung, is thriving. Sales of premium smartwatches have grown by over 20% in the past year. This suggests that consumers are increasingly willing to pay more for a smartwatch that offers advanced features and higher quality.c
In 2024, luxury watchmaker Franck Muller opened a boutique in India, aiming for a high-end market with watches averaging ₹700,000. This move reflects the growing demand for premium timepieces in India.
Ethos Ltd, India’s largest luxury watch retailer, has capitalized on the growing demand for high-end watches. The company, which went public in 2022, witnessed its stock value quadruple within two years, delivering an annual return of about 105% in just two years.
Ethos’s Strategy for Capturing the Luxury Watch Market
Ethos Ltd is set to surpass ₹1,000 crore in revenue by FY25, following its strong performance of ₹999 crore in the last fiscal year. However, this success wasn’t always guaranteed. Before the pandemic, the company struggled with sluggish growth and low profit margins, even facing losses in certain years. Ethos’s growth wasn’t just driven by market dynamics; strategic decisions transformed the company’s performance.
Here are the key factors behind Ethos’s turnaround:
1. Expansive Store Network
Ethos has built a broad network of over 60 stores across metro cities and tier 2 and 3 locations, including Ethos and Ethos Summit outlets, and exclusive brand outlets.
Luxury brands like Vacheron, JLL, and Panerai rely on retailers like Ethos, as opening their stores is expensive and inefficient. Ethos’s retail presence provides these brands with greater market access.
Ethos benefits from its parent company, KDDL Ltd., leveraging long-standing relationships with luxury brands. This has helped Ethos secure exclusive deals and expand its offering to over 7,000 unique timepieces.
Ethos now holds a 20% share of the organized luxury watch market and 13% overall watch market.
2. Strong Online Presence
Ethos’s robust online platform showcases 5,000 to 7,000 SKUs, far beyond what a physical store can display, allowing customers to browse an extensive collection.
An in-house digital team, including watch specialists and luxury consultants, provides personalized online assistance, making shopping as engaging as in-store visits.
Ethos’s omnichannel strategy has significantly expanded its reach, particularly in smaller towns. Online sales now contribute 30% of total billings.
3. Certified Pre-Owned Luxury Watch Market
Ethos entered the Certified Pre-Owned (CPO) market in 2019, offering a platform for customers to sell or buy pre-owned luxury watches with guaranteed authenticity, certification, and a two-year warranty.
This innovative move, supported by a dedicated CPO lounge and an online platform, contributed ₹50 crore in revenue in the last fiscal year, accounting for 5% of total sales.
Ethos’s flagship membership program, Club Echo, has been running for 14 years and provides valuable insights into customer preferences while encouraging repeat business.
This loyalty program helps Ethos reduce costs and maintain direct customer communication, ensuring strong relationships and market leadership.
Ethos has executed a series of strategic moves, and the results are reflected in its financial performance. In FY20, the company’s net profit margin was just 2%, but by FY24, it had risen to 8.3%. This is more than just growth—it represents a transformation driven by the key strategies previously outlined.
Expanding Beyond Watches
Ethos is not limiting its growth to watches alone. Recently, it entered the luxury luggage market through an exclusive partnership with LVMH’s Rimowa, opening its first store in 2023. It is also exploring the high-end jewellery sector, forming partnerships with brands such as Messika and Bvlgari.
Although these ventures are still in their early stages, the company is optimistic about future growth. Global luxury brands like Tiffany & Co. and Cartier have already recognized the potential in India’s market. They are expanding their presence, creating a favorable environment for Ethos to establish a foothold.
If Ethos can capture just 5% of this ₹8,000 crore luxury market by FY28, it could add around ₹400 crore to its revenue. With continued growth in its core watch sector and new ventures in jewelry and luxury goods, Ethos could reach a revenue target of ₹2,200 crore by FY28, with a net profit approaching ₹180 crore—effectively doubling its current figures.
Challenges and Risks
Dependence on Mall Traffic: A significant portion of Ethos’s sales come from stores in premium malls, which can be risky. If a mall struggles to attract visitors or new openings are delayed, it could impact Ethos’s sales.
High Working Capital Needs: Ethos’s business model requires substantial cash investment, particularly in inventory. In FY24, the company held ₹439 crore in inventory, 44% of its sales value. As Ethos expands into new categories like jewelry and luxury travel bags, managing working capital becomes more complex and could strain its finances.
Adapting to Consumer Preferences: The luxury market is dynamic and requires constant innovation. To remain competitive, Ethos must stay in tune with changing consumer tastes; failure could weaken its market position.
In conclusion, the luxury market’s rapid expansion is fueled by rising wealth, changing post-pandemic consumer preferences, and the global accessibility of premium brands through e-commerce. The growing demand for exclusivity and quality is further boosted by sustainability-conscious buyers, who value ethical practices in luxury goods production. As affluent consumers seek high-end experiences, the luxury sector may be poised for sustained growth driven by these evolving market dynamics.
*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 recommendation or investment advice by Research & Ranking. We will not be liable for any losses that may occur. Investment in securities market are subject to market risks. Read all the related documents carefully before investing. Registration granted by SEBI, membership of BASL, and certification from NISM in no way guarantee the performance of the intermediary or provide any assurance of returns to investors.
FAQ
What is Ethos, and why has its share price surged?
Ethos is a luxury watch retailer in India that has seen its share price skyrocket by over 105%. This surge is primarily driven by the growing demand for luxury goods in India, particularly among the country’s burgeoning High-Net-Worth Individuals (HNIs). As the number of HNIs in India continues to rise, so does their spending on luxury items like premium watches.
How is the luxury watch market in India performing?
The luxury watch market in India is experiencing robust growth, fueled by the increasing affluence of the Indian population. More and more Indians seek luxury timepieces as status symbols and investments. This trend has benefited companies like Ethos, which offers a wide range of luxury watch brands to cater to the diverse tastes of Indian consumers.
What is the outlook for the HNI population in India?
The HNI population in India is expected to double in the next five years. This growth is driven by economic growth, rising incomes, and entrepreneurial activity. The increase in HNIs will further fuel the demand for luxury goods, including luxury watches.
What are the challenges for Ethos in the future?
Challenges include intense competition from both domestic and international players, the potential for economic downturns, and the need to adapt to changing consumer preferences. However, Ethos also has significant opportunities to expand its business, such as entering new markets, introducing new product lines, and strengthening its online presence.
Ratan Naval Tata, one of India’s most beloved industrialists, passed away on Wednesday at 86 at Breach Candy Hospital, Mumbai. Known for his visionary leadership, integrity, and compassion, the life story of Ratan Tata has left an indelible mark on India’s corporate landscape and society. His legacy combines global business achievements with a solid commitment to social good and empathy for all living beings.
Ratan Tata Biography: Early Life and Education
Born on December 28, 1937, Ratan Tata grew up in the influential Tata family, known for its industrial prowess and philanthropic focus. Raised by his grandmother, Navajbai Tata, after his parents’ separation, Tata was instilled with values of service, humility, and responsibility. After completing his studies in architecture at Cornell University in 1962, Tata returned to India to contribute to the family business, marking the beginning of a remarkable journey.
Transforming Tata Group: Strategic Acquisitions that Shaped an Empire
Ratan Tata’s appointment as Chairman of Tata Sons in 1991 came at a critical time when India opened its economy to global markets. Under his leadership, Tata Group transformed dramatically from a largely India-centric business into a global powerhouse. His strategic vision led to high-profile international acquisitions that expanded the group’s global footprint and showcased Indian business acumen.
1. Tetley Acquisition (2000):
The journey towards globalization began with the acquisition of UK-based Tetley Tea in 2000 for $450 million. At the time, Tetley was the second-largest tea brand globally, and this acquisition marked the Tata Group’s first major international purchase. This bold move elevated Tata Tea (now Tata Consumer Products) on the global stage and established the group’s expertise in large-scale mergers and acquisitions.
2. Corus Group (2007):
Tata Steel’s acquisition of the Anglo-Dutch steelmaker Corus for $12 billion was one of the largest deals in India’s corporate history. This strategic move turned Tata Steel into one of the world’s largest steel producers, significantly expanding its global presence. Though the global financial crisis of 2008 posed challenges for the steel industry, Tata’s long-term vision allowed the company to stabilize and build a solid international base.
3. Jaguar Land Rover (JLR) Acquisition (2008):
Perhaps the most iconic of Tata’s acquisitions was the purchase of the British luxury car brands Jaguar and Land Rover from Ford for $2.3 billion. This move elevated Tata Motors to the ranks of global automakers. It was a personal triumph for Tata, especially after earlier negotiations with Ford for the sale of Tata Motors had fallen through. Under Tata’s leadership, JLR revived its fortunes and became a key revenue generator for Tata Motors, significantly contributing to its global success.
4. Other Notable Acquisitions:
Tata Motors’ purchase of South Korean Daewoo’s commercial vehicle division and Tata Steel’s acquisition of Singapore’s NatSteel further highlighted Tata’s ambition to expand internationally. These strategic acquisitions showcased his vision of turning Tata Group into a truly global conglomerate in scale, reputation, quality, and innovation.
Through these acquisitions, Ratan Tata realized his dream of making the Tata Group a global entity. In his own words, “I hope that a hundred years from now we will spread our wings far beyond India.”
A Commitment to Philanthropy
Ratan Tata’s leadership was not solely about corporate expansion; he was equally committed to uplifting society. Deeply rooted in the Tata family’s philosophy of giving back, he channeled much of the group’s wealth into philanthropic initiatives. Over 65% of Tata Sons’ ownership is held by charitable trusts, and through these trusts, Tata invested heavily in education, healthcare, rural development, and more.
1. Education:
Ratan Tata believed that access to education was essential for India’s development. He funded scholarships, including the Tata Scholarship for students at Cornell University, ensuring Indian students from economically weaker backgrounds could pursue higher education at top institutions. Tata Trusts also supports various initiatives in India to improve literacy and educational infrastructure in rural and underserved areas.
2. Healthcare:
Tata’s contributions to healthcare are vast, including developing cancer treatment centers, hospitals, and research facilities across India. The Tata Memorial Centre in Mumbai, one of India’s leading cancer research and treatment hospitals, is a testament to the group’s commitment to health. Tata Trusts have also contributed to improving maternal and child healthcare and combating malnutrition in rural India.
3. Social Development:
Tata’s philanthropy touched millions, from rural development projects to disaster relief efforts. His initiatives aimed at empowering rural communities, promoting sustainable farming practices, and improving sanitation and drinking water access have had a long-lasting impact on Indian society.
In 2020, during the COVID-19 pandemic, Tata pledged significant donations to support relief efforts, showcasing his unwavering commitment to society’s well-being.
A Deep Compassion for Animals
The Ratan Tata story would be incomplete without the mention of his compassion towards animals, especially dogs. His love for dogs is well-known, and throughout his life, he actively supported initiatives to protect and care for animals.
1. Bombay House Kennel:
In 2018, Tata ensured that a dedicated kennel was built at Bombay House, the Tata Group’s iconic headquarters, to provide shelter for the stray dogs that frequented the premises. This gesture symbolized his empathy and deep love for animals, as he ensured that these often-overlooked creatures had a safe and comfortable place.
2. Small Animal Hospital:
In July 2023, Ratan Tata inaugurated India’s first state-of-the-art Small Animal Hospital in Mumbai. The hospital spans 98,000 square feet and offers advanced treatments, including ICUs, CT scans, and specialized care for pets. This hospital highlights Tata’s love for animals and reflects his commitment to improving the lives of all beings, human and animal alike.
A Legacy Beyond Measure
Ratan Tata stepped down as Chairman of Tata Sons in 2012, but his influence continued as Chairman Emeritus. Under his leadership, Tata companies became global giants, and his name became synonymous with trust, innovation, and ethical business practices.
In addition to his business acumen, Tata’s legacy is defined by his humility, philanthropy, and genuine care for people and animals. His passing leaves a void, but his life’s work continues to inspire countless entrepreneurs, business leaders, and ordinary citizens.
Tata once said, “I don’t believe in making the right decisions; I make them and then make them right.” This philosophy, combined with his relentless drive for excellence and compassion, ensures that his legacy will endure for generations.
For a deeper dive into his extraordinary journey, readers can explore A.K. Gandhi’s bestseller, “A Complete Biography of Ratan Tata.”
The Life Story of Ratan Tata: An Inspiring Journey
The life story of Ratan Tata is a tale of remarkable achievements, unwavering integrity, and boundless compassion. From transforming the Tata Group into a global conglomerate to his deep-rooted philanthropic efforts and love for animals, Ratan Tata’s journey inspires many.
His story embodies the ideals of leadership, vision, and humility, demonstrating how one man’s dedication can impact millions. As we reflect on his legacy, it is clear that Ratan Tata’s life was not just about business success but about creating a lasting difference in the world. His legacy will forever remain a guiding light for future generations.
Once celebrated for democratizing stock market access by offering free or low-cost trades, the discount brokerage industry is now facing a turning point. Major players like Zerodha, Groww, and AngelOne are struggling with regulatory changes and shifting market dynamics that challenge their core business models.
Under the new “true-to-label” rules, brokers must pass all exchange transaction fees directly to the exchanges. This regulation removes any discounts brokers previously kept for themselves. The timing of this change aligns with an increase in securities transaction tax (STT) on futures and options trades, potentially raising overall costs for traders.
Since the Securities and Exchange Board of India (SEBI) introduced the true-to-label regime on July 1, shares of BSE Ltd, the only listed exchange, have surged nearly 65%. This rise is attributed to the upcoming initial public offering of the rival NSE and the anticipated benefits from the new SEBI regulations.
The “true-to-label” rules require brokers to adhere strictly to their offerings. This means they must be transparent about the services they provide and cannot rely on hidden charges or unclear pricing structures. This affects discount brokers, as they will have to revise their business models to ensure they do not mislead customers about the costs or risks associated with investing on their platforms.
Let’s explore how this landscape changes and what it means for brokers and investors.
Key Changes in the Brokerage Industry
End of Exchange Fee Discounts
-Brokers used to retain exchange transaction fee discounts from exchanges.-New rules from 1 October mandate brokers to pass all fees to exchanges, raising their costs.
Rising Brokerage Fees
-Angel One ends its zero-brokerage policy on equity delivery trades, charging ₹20 per order or 0.1% of the transaction value, whichever is lower for cash delivery trades. -Zerodha hasn’t changed its fees yet.
Customer Retention Challenges
-Brokers may see churn as customers leave for lower-cost options. -Firms must rethink value propositions to retain clients.
Shrinking Profit Margins
-Flat charges reduce profit margins.-Brokers may introduce new fees and improve services to stay competitive.
Market Share Redistribution
Brokers offering better experiences and transparent pricing may gain market share.
The market regulator has introduced several measures to regulate India’s derivatives market. These include limiting the number of weekly expiries per exchange to one instead of the current five and raising the contract size for index F&O contracts from ₹5-10 lakh to ₹15-20 lakh. Additionally, the lot sizes and margin requirements will be increased proportionally, with traders facing extra margin requirements on expiry day. These changes are set to take effect from November 20, 2024. Source: Mint
Impact of the True-to-Label Rule on Brokerages
According to industry experts, the true-to-label rule will ensure uniformity across brokerages. With exchanges discontinuing transaction fee discounts for brokers, the rule will impact broker revenues, signaling the end of discount-driven benefits in trading.
Experts believe these changes and new regulations in the derivatives market will curb speculative trading. They also express uncertainty about potential pricing changes and how these reforms affect F&O volumes.
The Rise of Discount Brokers
In the past decade, discount brokers revolutionized retail investing by removing traditional barriers to entry. They attracted millions of new investors by eliminating high commissions, simplifying the trading experience with user-friendly apps, and offering educational resources to help beginners navigate the stock market.
Unlike traditional full-service brokers, these platforms operate with a low-cost model, making money through other means such as margin lending, subscriptions, or small fees for premium services.
Popular platforms like Zerodha, Groww, and AngelOne quickly became household names in India. Their no-brokerage or minimal fee structure allowed retail investors to make frequent trades without the burden of high transaction costs, fostering a new generation of market participants.
Changing Regulatory Environment
However, the honeymoon phase for discount brokers is coming to an end. The Securities and Exchange Board of India (SEBI) is introducing stricter regulations to ensure transparency and protect investors. These new rules, especially regarding margin requirements, trading mechanisms, and the “true-to-label” framework, are causing significant ripples in the brokerage world.
Impact on Free Trading
One of the most significant impacts of these changes is the potential end of free trades. Free or zero-brokerage trades were a major draw for discount brokers, but now, brokers may need to start charging for certain services to comply with SEBI’s regulations. As a result, the zero-fee model, which has been a cornerstone of platforms like Zerodha and Groww, could become unsustainable.
Brokers must adapt by diversifying revenue streams and offering value-added services such as advisory, premium research reports, or advanced trading tools. For investors, this could mean additional costs, enhanced services, and a more transparent investment experience.
Shifts in Business Models
With the regulatory landscape evolving, discount brokers are rethinking their business strategies. They must balance compliance with profitability while maintaining their appeal to cost-sensitive investors. This may lead to tiered pricing models, where basic services remain free or inexpensive, but more advanced features come at a premium.
Additionally, brokers will likely increase their focus on ancillary services such as mutual fund distribution, insurance products, and robo-advisory. These services can help diversify their income streams while providing investors with more comprehensive financial planning tools.
Increased Competition
As the industry shifts, competition among discount brokers is intensifying. New entrants are vying for market share while existing players are upping their game to retain clients. Companies will likely invest more in technology, improving app functionality, enhancing user experiences, and providing seamless integration across financial products.
Furthermore, brokers may emphasize investor education and financial literacy to attract and retain customers. By offering better educational tools, tutorials, and market insights, brokers can build trust and loyalty among retail investors navigating an increasingly complex financial landscape.
The Role of Technology
Technology will play a pivotal role in shaping the future of discount brokers. As costs rise and margins shrink, automation and artificial intelligence (AI) will be crucial for maintaining efficiency. AI-powered trading tools, personalized investment advice, and advanced data analytics are becoming more prevalent, helping brokers cater to the needs of both novice and experienced investors.
Moreover, as customer expectations evolve, brokers must ensure their platforms are fast, secure, and user-friendly. Mobile app enhancements, intuitive interfaces, and features like voice-assisted trading could soon become industry standards.
What This Means for Investors
For retail investors, the end of free trade may seem like a setback, but it could lead to a more transparent and service-oriented investment environment. While some costs may increase, investors will likely benefit from better educational resources, improved trading tools, and more personalized advice. Additionally, the new regulations will ensure that brokers are more accountable, reducing the risk of hidden fees or misleading information.
Investors should also be prepared for more diversification in the services offered by discount brokers. Platforms may start promoting more financial products beyond stock trading, such as mutual funds, insurance, and tax-saving instruments, giving investors a broader range of options within a single platform.
Conclusion: A New Era for Discount Brokers
The discount brokerage industry is at a crossroads. Regulatory changes, competitive pressures, and investors’ evolving needs are forcing brokers to adapt their business models. While the era of free trades may be ending, these changes also present an opportunity for brokers to innovate and provide more value to their customers.
As we move forward, it’s clear that life will never be the same for discount brokers. However, those who can adapt to the new regulations, embrace technology, and focus on delivering superior services will thrive in this new era. Investors, too, must be ready to navigate this changing landscape, weighing the benefits of new tools and services against any potential costs.
*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 recommendation or investment advice by Research & Ranking. We will not be liable for any losses that may occur. Investment in securities market are subject to market risks. Read all the related documents carefully before investing. Registration granted by SEBI, membership of BASL, and certification from NISM in no way guarantee the performance of the intermediary or provide any assurance of returns to investors.
FAQs
What are the new regulations that have halted free trades?
The new regulations implemented by SEBI aim to ensure fair market pricing and prevent predatory trading practices. These regulations mandate that discount brokers pass on all fees, including exchange and transaction fees, directly to their customers. This means that the days of commission-free trades are over.
Why are these regulations being implemented?
SEBI believes the previous commission-free trading model created an unfair playing field, where certain market participants had an advantage over others. By requiring brokers to pass on all fees, SEBI hopes to level the playing field and promote fair competition.
How will this affect discount broker customers?
Discount broker customers can expect to pay higher fees for their trades. The exact amount will vary depending on the broker, the exchange, and the type of trade. However, customers will likely see a significant increase in their trading costs compared to the previous commission-free model.
Are there any alternatives to traditional discount brokers?
While traditional discount brokers will now charge fees, investors have other options. Some may consider using a robo-advisor, which offers automated investment services at a lower cost. Others may invest directly with a brokerage firm, which can provide more personalized service but may incur higher fees.
Ratan Naval Tata, one of India’s most revered industrialists, passed away on Wednesday at Mumbai’s Breach Candy Hospital at 86. The Chairman Emeritus of Tata Sons and recipient of India’s second-highest civilian honor, the Padma Vibhushan, had been in critical condition. Despite being under intensive care, his passing has left a nation mourning the loss of an iconic leader.
Ratan Tata was not just an industry titan—he embodied empathy, humility, and an unwavering moral compass. During his two-decade tenure as Chairman of Tata Sons, he transformed the group into a global powerhouse, steering it through an era of rapid globalization.
Under his leadership, Tata Sons became synonymous with trust, integrity, and excellence—values that Ratan Tata consistently championed throughout his career. So, what’s next? How is the market reacting to this news?
Impact of Ratan Tata’s Death on Tata Sons & the Market
Ratan Tata’s passing has undoubtedly left a vacuum in both the leadership of Tata Sons and the wider Indian business community. As the stock markets reacted to the news, the performance of Tata Group companies came under scrutiny.
Tata Motors experienced a slight decline, while companies like Tata Chemicals and Indian Hotels surged in early trade. Investors and analysts are assessing the long-term implications of this loss, not just for the Tata Group but for the Indian market as a whole.
Over the years, Tata Sons has evolved into a global conglomerate interested in diverse industries such as technology, automotive, and steel. Yet, the group’s core remains firmly rooted in the values that Ratan Tata championed.
The current chairman, Natarajan Chandrasekaran, acknowledged this in a heartfelt statement, emphasizing that Ratan Tata’s leadership will continue to influence the group’s direction for years. As the group moves forward, the ethos and principles Ratan Tata embodied—integrity, social responsibility, and global excellence—will remain at the heart of its operations.
Financial Performance of Tata Group Stocks
Several Tata Group companies have seen increased market activity after Tata’s passing. Trent Ltd., in particular, has rallied by 168% in 2024, reflecting the group’s strong financial performance.
Despite the mixed results in Tata Motors and Trent, other companies within the conglomerate, including Tata Consultancy Services (TCS), Tata Elxsi, and The Indian Hotels Company Ltd., have remained solid performers.
Investors continue to watch closely as Tata Group’s financial strategies under Chandrasekaran evolve, with Ratan Tata’s enduring influence providing a steadying force. Source: Business Standard
A Beacon of Corporate Leadership and Social Responsibility
Tata’s leadership extended far beyond financial success. His vision was rooted in social responsibility, believing a company’s success lies in how much it gives back to society. During his time at the helm, Tata Trusts grew into one of India’s largest philanthropic organizations, supporting education, healthcare, and rural development initiatives. This deep sense of duty to society became a cornerstone of his leadership, with projects that improved the lives of millions, particularly in underserved communities.
While his acquisitions of global brands like Tetley and Jaguar Land Rover made headlines, Tata’s greatest legacy was his commitment to creating a more equitable world. He famously said that a company’s welfare must be linked to the welfare of society—a principle that continues to guide Tata Sons today.
Ratan Tata’s Passionate Legacy
One of the more personal facets of Ratan Tata’s legacy was his profound compassion for animals, especially dogs. In 2018, he ensured a dedicated kennel was built at Bombay House to shelter stray dogs who frequented the headquarters. In July 2023, he inaugurated India’s first Small Animal Hospital in Mumbai. Spanning 98,000 square feet, the hospital offers advanced treatments like ICUs, CT scans, and specialized care, further exemplifying Tata’s empathy and commitment to improving all human and animal lives.
Humility Amid Greatness
His humility set Ratan Tata apart from many other business magnates. He never appeared on billionaire rankings despite leading one of the world’s most valuable conglomerates. This was mainly due to the unique structure of the Tata empire, with much of its profits channeled into charitable trusts.
Stories of his kindness are well-known. In one poignant example from 2021, Tata quietly traveled from Mumbai to Pune to visit a former employee who had been ill. It was a simple but profound reminder that behind the towering business legacy was a man who deeply valued personal connections and never forgot the people who contributed to his journey.
A Lasting Impact on Indian Business and Society
Ratan Tata’s legacy goes beyond financial success. His contributions to the business world and philanthropic endeavors have shaped the Indian corporate landscape and impacted millions of lives. While his passing marks the end of an era, his values and vision will continue to shape the future of Tata Sons and the Indian industry for generations.
As we reflect on his life and legacy, we are reminded of his own words, which perfectly encapsulate the spirit of his journey: “I would like to be remembered as somebody who had never hurt others and done work in the best interest of business. Remember me as a person who made a difference. Not anything more, not anything less.”
Ratan Tata made that difference. His life was humble, compassionate, and dedicated to building a better world—for business, society, and all beings. His legacy will endure as a beacon of leadership, kindness, and integrity.
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 performance of the intermediary or provide any assurance of returns to investors.
India has emerged as a major hub for electronics and electric vehicle (EV) infrastructure, and this momentum is expected to attract investments worth $15 billion from Taiwanese firms, according to a report by the Federation of Indian Chambers of Commerce & Industry (Ficci). The potential for collaboration between India and Taiwan, particularly in electronics manufacturing and EV infrastructure, opens new avenues for both countries, fueling India’s growth ambitions and positioning Taiwan as a strategic partner.
In FY24, India’s exports to Taiwan amounted to $1.84 billion, while imports reached $8.28 billion, primarily driven by electronic components and telecom instruments. Source: Economic Times
Key Highlights of Potential Taiwanese Investment
Highlights
What it means
$15 Billion Investment
India is poised to attract $15 billion in Taiwanese investments across key sectors, according to Ficci.
Focus on Electronics
Sectors like printed circuit boards (PCBs) and electronic components are identified as high-growth areas for collaboration.
Electric Vehicle (EV) Infrastructure:
India’s expanding EV market is a major draw for Taiwanese companies, which are known for their expertise in EV components and battery technology.
Strategic Partnership
The partnership leverages India’s market potential and Taiwan’s advanced technological capabilities.
$170 Billion Market by 2030
Demand across five key sectors is expected to reach $170 billion by 2030, offering a huge market for Taiwan’s advanced technology and expertise.
The consumer electronics market in India was valued at USD 73.73 billion in 2022 and is projected to grow at a compound annual growth rate (CAGR) of 6.8% from 2023 to 2030.
The Indian EV market is expected to grow from $3.21 billion in 2022 to $113.99 billion by 2029, achieving a CAGR of 66.52%. The EV battery market is projected to rise from $16.77 billion in 2023 to $27.70 billion by 2028. With increased investments over the next 8-10 years, India will become the largest EV market by 2030.
5 Reasons for Taiwanese Companies to Expand in India
Growing Domestic Market: India’s rapidly expanding consumer base offers significant opportunities for Taiwanese companies to tap into new markets and increase sales.
Lower Manufacturing Costs: The cost-effectiveness of manufacturing in India makes it an attractive location for Taiwanese firms looking to optimize their production expenses.
Pro-Investment Policies: India’s government has implemented favorable policies encouraging foreign investments and simplifying processes for Taiwanese companies entering the market.
Technological Collaboration: The synergy between Taiwan’s technological expertise and India’s growing demand for advanced electronics creates a mutually beneficial environment for innovation.
Strategic Geographical Location: India’s strategic location provides Taiwanese companies with access to a vast market, making it easier for them to serve neighboring countries and enhance their global supply chains.
Strong Bilateral Ties Between India and Taiwan
India and Taiwan have fostered economic cooperation over the past decade. Taiwan is globally recognized for its advanced technology, particularly in electronics and semiconductors, while India offers an expansive market and a skilled workforce. These complementary strengths make the relationship mutually beneficial. With the rise of global interest in clean energy and electronic innovations, Taiwanese companies are eyeing India for large-scale investments.
Ficci’s report emphasizes that this partnership can focus on sectors like electronics, electric vehicles, and even healthcare technology. As Taiwan’s economy thrives on high-tech exports, India’s growing demand for EV infrastructure and electronics makes it an ideal investment destination.
Government Initiatives Driving Investment
India’s government has made significant strides in improving the investment climate, particularly in sectors related to electronics and EVs. Programs like the PLI scheme incentivize electronics manufacturing by offering financial support to manufacturers, making it easier for Taiwanese companies to set up shop in India. Additionally, the Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME) scheme supports the production and deployment of EVs, further encouraging foreign investments.
The Ficci report underscores that India’s digital infrastructure is rapidly improving, focusing on smart cities, 5G technology, and electric mobility. These initiatives make India an attractive destination for Taiwanese firms looking to expand their global footprint. Source: Economic Times
India’s Competitive Edge
Several factors make India a desirable investment destination for Taiwanese companies:
Sizeable Domestic Market: India’s vast consumer base, particularly its middle class, offers a lucrative market for electronics and EVs. As purchasing power increases, demand for high-quality electronic goods and electric vehicles is set to rise significantly.
Skilled Labor Force: India’s pool of talented engineers and IT professionals is another attraction for Taiwanese firms, particularly in sectors requiring technical expertise, such as semiconductors and EV technology.
Cost Efficiency: India offers a competitive edge in cost, with affordable labor and operational costs compared to other manufacturing hubs. This makes it an ideal location for Taiwanese companies looking to optimize production costs while scaling up operations.
Challenges to Overcome
While the opportunities are significant, some challenges must be addressed to ensure smooth collaboration between India and Taiwan. These include:
Infrastructure Development: Although India has made progress in infrastructure development, more progress is needed in transportation, energy supply, and logistics. These improvements are essential to attract large-scale foreign investments.
Supply Chain Issues: The global supply chain disruptions caused by the COVID-19 pandemic have highlighted the need for resilient and diversified supply chains. India and Taiwan must work together to create seamless electronics and EV manufacturing supply chains.
Regulatory Hurdles: Taiwanese companies entering India may face complex regulatory frameworks. Simplifying these processes through bilateral trade agreements could facilitate smoother entry for Taiwanese firms into the Indian market.
The Road Ahead
India must continue strengthening its ties with Taiwan to ensure the $15 billion investment materializes. Ficci’s report recommends the establishment of joint task forces between the two countries to identify key investment areas and resolve potential roadblocks. The India-Taiwan Bilateral Trade Agreement can be enhanced to include more favorable terms for Taiwanese companies, particularly in high-tech sectors like semiconductors, EV batteries, and electronics manufacturing.
Moreover, the governments of both nations need to collaborate on research and development (R&D) initiatives, focusing on emerging technologies. By pooling their expertise, India and Taiwan can drive innovation in electronics and EVs, accelerating the global adoption of clean energy technologies.
Conclusion
The potential for a $15 billion Taiwanese investment in India’s electronics and EV infrastructure signals a new chapter in the economic partnership between the two nations. With the right policies and collaboration, India and Taiwan can benefit significantly from this strategic alliance.
India stands to gain from Taiwan’s technological prowess, while Taiwanese companies can tap into one of the world’s largest markets. Together, they can drive growth in the high-tech and green energy sectors, fostering a mutually beneficial relationship that supports sustainable development and economic progress.
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 performance of the intermediary or provide any assurance of returns to investors.
FAQ
Why is Taiwan interested in investing in India?
Taiwanese businesses are increasingly interested in India due to several factors. First, India’s growing population offers a vast market for Taiwanese products and services. Second, India’s economic growth and development initiatives, such as the Make in India program, create favorable conditions for foreign investment. Third, India’s strategic location and growing influence in the Indo-Pacific region make it an attractive destination for Taiwanese companies seeking to expand their global footprint.
What sectors are Taiwanese companies likely to invest in?
Taiwanese investment may focus on sectors where India has a strong comparative advantage and growing demand for their products and services. These sectors include electronics, semiconductors, information technology, textiles, pharmaceuticals, and automotive components. Taiwanese companies may also explore opportunities in renewable energy, infrastructure development, and healthcare.
How can India capitalize on this investment opportunity?
India needs to create a conducive business environment to maximize the benefits of Taiwanese investment. This includes streamlining regulatory processes, improving infrastructure, and incentivizing foreign investors. Additionally, India can strengthen its bilateral relationship with Taiwan through trade agreements and cooperation initiatives. By doing so, India can attract more Taiwanese investment and enhance its economic development.
What are the challenges and opportunities associated with this investment?
While the potential for Taiwanese investment in India is significant, challenges must be addressed. These include concerns about intellectual property protection, infrastructure bottlenecks, and geopolitical factors. However, with the right policies and initiatives, India can overcome these challenges and reap the rewards of Taiwanese investment.
The festive season is here, and the Indian stock market is buzzing! But this year, there’s an extra reason for auto enthusiasts to celebrate. One of the most anticipated IPOs of 2024, Hyundai Motor India, is all set to hit the market on October 15th. This offering will be a landmark event for several reasons.
First, it will be India’s biggest-ever IPO, surpassing the record set by LIC in 2022. Second, it will mark the return of a car manufacturer to the public market after a two-decade hiatus (remember Maruti Suzuki in 2003?). So, before you decide to jump in, let’s take a closer look at what Hyundai Motor India’s IPO offers.
This IPO is entirely an offer for sale by the South Korean auto giant Hyundai Motor Company. They aim to offload up to 14.22 crore equity shares, potentially raising a staggering ₹27,870.16 crore. Here’s the breakdown of how the shares will be allocated:
Qualified Institutional Buyers (QIBs)
Up to 50%
Non-Institutional Investors (NII)
Not less than 15%
Retail Investors
Not less than 35%
Employee Reservation
Up to 778,400 shares with a discount of ₹186 per share
The IPO price band is between ₹1,865 and ₹1,960 per share. Interestingly, the Indian subsidiary of Hyundai won’t receive any proceeds from this offering – the entire amount goes to the South Korean parent company. Mark your calendars! The anchor book for the issue opens on October 15th, with a tentative listing on both BSE and NSE expected for October 22nd.
Objectives of Hyundai Motors India Limited IPO
While the Indian entity doesn’t receive any direct financial benefit, the listing has several strategic advantages:
Enhanced Brand Image: The IPO aims to boost Hyundai Motor India’s visibility and brand recognition within the domestic market.
Market Standing: Listing on a major stock exchange like the NSE strengthens Hyundai’s position as a key player in India’s booming automotive sector.
Long-Term Benefits: This move might pave the way for future growth and potential funding opportunities for Hyundai Motor India.
GMP of Hyundai Motors India Limited IPO
The current Grey Market Premium (GMP) for Hyundai Motor India sits at ₹147.
This suggests that investors in the unofficial market anticipate a listing price of around ₹2,107 per share, which is 7.5% higher than the IPO price band. Source: Livemint
Company Overview
Founded in 1996, Hyundai Motor India is a subsidiary of the Hyundai Motor Group, the world’s third-largest car manufacturer by passenger vehicle sales. They’re not just about assembling cars; they offer a variety of services:
Manufacturing a diverse range of four-wheeler passenger vehicles, including sedans, hatchbacks, SUVs, and electric vehicles (EVs). Popular models include Grand i10 NIOS, Venue, Creta, and the all-electric Ioniq 5.
Production of car parts like transmissions and engines.
Extensive sales and service network with over 1,366 sales points and 1,550 service points across India.
Exports to countries like Africa, the Middle East, and neighboring South Asian nations.
For the June 30th, 2024 quarter, Hyundai Motor India reported a net profit of ₹1,489.65 crore with a revenue of ₹17,567.98 crore. Looking at the previous financial year (FY2024), the company achieved a net profit of ₹6,060.04 crore on an income of ₹71,302.33 crore. These numbers showcase consistent growth and financial stability.
Strong brand reputation and global presence of Hyundai Motor Group.
Diverse product portfolio catering to various segments.
Extensive distribution and service network across India.
Focus on innovation and electric vehicles.
Reliance on the South Korean parent company for technology and R&D.
Intense competition from established players like Maruti Suzuki and Tata Motors.
Fluctuations in raw material prices and foreign exchange rates.
OPPORTUNITIES
THREATS
There is a growing demand for passenger vehicles in India, especially SUVs and EVs.
Government initiatives promoting electric mobility and vehicle scrappage schemes.
Expansion into new markets and export opportunities.
There is growing demand for passenger vehicles in India, especially SUVs and EVs.
Government initiatives promoting electric mobility and vehicle scrappage schemes.
Expansion into new markets and export opportunities.
Conclusion
So, will Hyundai Motor India’s IPO be smooth, or will it encounter a few bumps on the road? Only time will tell. However, you can make a more informed investment decision by understanding the company’s strengths, weaknesses, opportunities, and threats.
Hyundai Motor India’s IPO is undoubtedly a significant event. The company boasts strong financials, brand recognition, and a diverse product portfolio. However, the Indian auto industry is fiercely competitive, and external factors can impact profitability. Carefully consider your risk tolerance and research the market before making investment decisions.
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 performance of the intermediary or provide any assurance of returns to investors.
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