News

This category will talk of the news of the day and our analysis of the event.

The electric vehicle (EV) revolution is picking up speed, and Tesla is front and center in this exciting shift. But it’s not just about Tesla—the entire EV ecosystem plays a big role. From battery makers to software companies, the EV boom is opening up opportunities across many industries. But what about the lesser-known players—the stocks that aren’t obvious but stand to benefit from this transformation?

Tesla’s India Buzz and the Broader EV Transformation

In the coming months, discussions about Tesla entering India are likely to gain momentum. While geopolitical factors like import duty negotiations could add some drama, the focus remains on the transformative impact of the EV sector.

Whenever a sector undergoes a significant shift, certain companies naturally emerge as prominent players—like automakers and auto ancillary firms in the EV space. However, there are also companies that may not immediately seem connected to EVs but stand to benefit from the industry’s growth. These unexpected players, while not directly part of the EV sector, could play a pivotal role in shaping its ecosystem.

The NSE has created an index to track the EV ecosystem comprehensively. Within this index, several companies specialize in embedded software tailored for EVs. Additionally, some auto ancillary companies, well-prepared for this shift, have successfully transitioned to support the EV industry. Others have launched operations dedicated exclusively to the EV sector. Source: Economic Times

Look at all the companies in the new Nifty EV & New Age Auto Index.

Nifty EV & New Age Auto Index Stocks

CompanyMarket Cap in crore (as of 28-11-24)CMPPE RatioROCE %3 Yrs Return %
Tata Motors Ltd.2890687858.6320.119
Amara Raja Energy & Mobility Ltd.23263127124.018.728
Maruti Suzuki India Ltd.3448681096924.621.816
KPIT Tecnologies Ltd.38731141353.338.447
Varroc Engineering Ltd.795652115.117.521
Reliance Industries Ltd.1738910128525.69.615
Bharat Forge Ltd.62319133862.812.924
Hero Motocorp Ltd.96600483023.429.125
TVS Motor Copmany Ltd.115744243661.414.753
Samvardhana Motherson International Ltd.11377716230.013.712
Ashok Leyland Ltd.6925723226.415.025
Motherson Sumi Wiring Ltd.2844564.343.148.0
Tata Elxsi Ltd.42028674851.442.76
CG Power & Industrial Solutions Ltd.11551975612946.673
Sona BLW Precision Forgings Ltd.4140666672.124.0-3
UNO Minda Ltd.5956110376619.934
Mahindra & Mahindra Ltd.363117292030.513.652
Eicher Motors Ltd.132177482231.031.027
L & T Technology Services Ltd55418523644.133.41
Bosch Ltd.10246134,74051.220.629
Olectra Greentech Ltd.12973158111614.825.8
JBM Auto Ltd.18312154997.814.464
Rattanindia Enterprises Ltd.901065.212.62.8913
Source: Screener

The EV revolution isn’t just about carmakers or batteries; it’s about a comprehensive ecosystem involving various industries. Beyond automakers, several companies are transforming themselves to cater to the growing EV demand. These include firms that supply specialty chemicals for battery production and others developing components essential to the EV ecosystem.

Here’s a list of 8 lesser-known stocks that may not immediately come to mind when one thinks of EVs.

Jupiter Wagons Ltd.

Jupiter Wagons Ltd. is a leading Indian manufacturer of railway freight wagons, passenger coaches, and wagon components.  Headquartered in Kolkata, the company caters to both Indian Railways and private sector clients. Jupiter Wagons plays a crucial role in India’s railway infrastructure development with a focus on innovation and quality.

CompanyMarket Cap in crore (as of 28-11-24)CMPPE RatioROCE %3 Yrs Return %
Jupiter Wagons Ltd.2085649157.031.7144
Source: screener.in

Tata Technologies Ltd.

Tata Technologies is a global leader in product engineering and digital solutions. They serve major players in automotive, aerospace, and industrial machinery sectors. With a focus on innovation and digital transformation, they help clients design, engineer, and manufacture better products. Their expertise lies in areas like engineering services, product development, and digital manufacturing solutions.

CompanyMarket Cap in crore (as of 28-11-24)CMPPE RatioROCE %3 Yrs Return %
Tata Technologies Ltd.3814394059.028.3
Source: Screener.in

Tube Investments of India Ltd.

Tube Investments of India Ltd. (TI) is a leading Indian engineering conglomerate. It specializes in manufacturing a wide range of products like bicycles, precision steel tubes, automotive components, and industrial chains. TI is known for its strong focus on quality, innovation, and customer satisfaction. It is a part of the prestigious Murugappa Group.

CompanyMarket Cap in crore (as of 28-11-24)CMPPE RatioROCE %3 Yrs Return %
Tube Investments of India Ltd.69882361387.026.329
Source: Screener.in

Schaeffler India Ltd.

Schaeffler India Ltd. is a leading manufacturer of high-precision bearings and automotive components. Part of the global Schaeffler Group, it supplies crucial components for engines, transmissions, and chassis systems. With a focus on innovation and sustainability, it caters to both the automotive and industrial sectors. Its products are designed to enhance efficiency and reduce emissions.

CompanyMarket Cap in crore (as of 28-11-24)CMPPE RatioROCE %3 Yrs Return %
Schaeffler India Ltd.55450354858.426.732
Source:Screener.in 

Gujarat Fluorochemicals Ltd.

Gujarat Fluorochemicals Ltd. (GFL) is a leading Indian manufacturer of fluorochemicals and refrigerants. It caters to various industries, such as automotive, electronics, healthcare, and construction. GFL is known for its innovative products and commitment to sustainability. It has a strong global presence and is a major player in the fluorochemicals market.

CompanyMarket Cap in crore (as of 28-11-24)CMPPE RatioROCE %3 Yrs Return %
Gujarat Fluorochemicals Ltd.4316439291059.7625
Source: Screener.in

Exide Industries Ltd.

Exide Industries Ltd. is a leading Indian manufacturer of storage batteries. It caters to a wide range of applications, including the automotive, industrial, and telecom sectors. Exide is known for its high-quality products and strong distribution network. It is committed to providing reliable and efficient power solutions to its customers.

CompanyMarket Cap in crore (as of 28-11-24)CMPPE RatioROCE %3 Yrs Return %
Exide Industries Ltd.38,77745646.410.240
Source: Screener.in

Tata Chemicals Ltd.

Tata Chemicals Ltd. is a leading global manufacturer of chemicals and fertilizers. It produces a wide range of products, including soda ash, inorganic chemicals, and specialty chemicals. Focusing on sustainability and innovation, it contributes to various industries like agriculture, consumer goods, and industrial manufacturing. Its products are used in everyday life, from food to pharmaceuticals.

CompanyMarket Cap in crore (as of 28-11-24)CMPPE RatioROCE %3 Yrs Return %
Tata Chemicals Ltd.28106110345.87.818
Source: Screener.in

Himadri Speciality Chemical Ltd.

Himadri Speciality Chemical Ltd. is a leading Indian manufacturer of specialty chemicals and carbon materials. It caters to diverse industries like steel, aluminum, plastics, automotive, and construction. With a focus on innovation and sustainability, it produces a wide range of products, including coal tar pitch, carbon black, naphthalene, and specialty oils. Himadri is committed to providing high-quality solutions to its customers.

CompanyMarket Cap in crore (as of 28-11-24)CMPPE RatioROCE %3 Yrs Return %
Himadri Speciality Chemical Ltd.2588452453.818.8128
Source: Screener.in

Key Points on the EV Ecosystem and Emerging Opportunities

Batteries

The battery is the most critical component of an EV. Companies like Ola Electric are investing in advanced batteries, such as their Bharat 4680 battery, to power the future of EVs.

The focus goes deeper into the supply chain—companies are working on providing the essential materials required to manufacture EV batteries. This includes firms supplying specialty chemicals and other critical inputs that form the foundation of the battery ecosystem.

The EV Supply Chain

The EV supply chain spans from the most unexpected players (e.g., specialty chemical providers) to the more obvious ones like Ola Electric and automakers actively involved in EV production. This interconnected chain highlights opportunities across industries, not just within traditional auto or EV firms. Source: Economic Times

Why the EV Boom is Bigger Than Tesla

While Tesla has captured global attention, it’s important to note that the EV ecosystem extends far beyond one company. Governments are setting ambitious EV adoption targets, and traditional automakers are rapidly expanding their EV offerings. This surge creates opportunities in industries that may not immediately come to mind but are critical to EV adoption.

Is the Ecosystem Ready for Tesla?

Tesla’s vision has always been ambitious, from building cutting-edge EVs to scaling up its Gigafactories. But even Tesla can’t do it alone. Its success depends on a robust ecosystem of suppliers and partners.

The readiness of this ecosystem depends on several factors:

  1. Infrastructure: Charging networks need to expand rapidly to match growing EV demand.
  2. Supply Chain Resilience: From rare earth elements to semiconductors, supply chains must adapt to the increased demand for EV components.
  3. Policy Support: Governments worldwide must invest in incentives, infrastructure, and research to support EV adoption.

What Should Investors Watch For?

For those looking to capitalize on the EV boom, here are some key trends to monitor:

  • Battery Innovations: Breakthroughs in battery technology could shift market dynamics, benefiting companies that adapt quickly.
  • Global Expansion: Companies with international operations are better positioned to benefit from the worldwide EV push.
  • Regulatory Changes: Policies promoting EV adoption will directly impact companies across the ecosystem.

The Road Ahead

The EV revolution is reshaping industries far beyond the automotive sector. While Tesla remains a driving force, the ecosystem supporting EVs is just as critical—and often overlooked.

The EV ecosystem is evolving to support this shift as the world moves toward electrification. Whether or not it’s entirely ready for Tesla, one thing is clear: the opportunities in this space are immense, and the players who adapt quickly will drive the future.

FAQ

  1. What is the EV wave? 

    The EV wave refers to the rapid growth and adoption of electric vehicles (EVs). Companies across the supply chain are benefiting from this trend, including battery manufacturers, charging infrastructure providers, and auto component suppliers.

  2. Why are these 8 stocks poised to benefit? 

    These stocks have been selected based on their strong positions in the EV supply chain, innovative technologies, and potential for significant growth as the EV market expands.

  3. What are the risks associated with investing in these stocks?

    Investing in any stock involves risk. These stocks are particularly susceptible to EV market fluctuations, government policy changes, and competition from established and emerging players.

  4. How can I research these stocks further? 

    To conduct thorough research, consider analyzing the companies’ financial performance, competitive landscape, and future growth prospects. Consult with a financial advisor or conduct independent research to make informed investment decisions.

Have you been keeping track of the market’s recent swings? You’re not alone if you’re feeling uncertain amid fluctuating numbers and shifting trends. Despite a turbulent trading session on November 27, the markets showed resilience, with both the Nifty 50 and Sensex closing positively. Here’s a closer look at how the day unfolded, the global cues influencing investor sentiment, and updates on the much-anticipated Enviro Infra IPO allotment.

Domestic Market Performance

The domestic benchmark indices exhibited notable volatility throughout the day. The Sensex rose by 230.02 points (0.29%) to close at 80,234.08, while the Nifty 50 gained 80.40 points (0.33%), settling at 24,274.90. This upward trend reflects the market’s underlying strength despite mixed global signals.

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Source: NSE

One factor that contributed to the day’s performance was the rebound in Adani Group stocks. However, this was partially offset by underperforming heavyweights, leading to a dynamic trading environment marked by frequent fluctuations. Investors remain optimistic, buoyed by strong earnings expectations for the second half of FY25, which continue to drive a healthy consolidation phase in Indian equities.
Source: Business Standard

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Source: BSE

Global Cues and Investor Sentiment

Global markets provided a mixed bag of cues, with Wall Street experiencing a decline due to concerns surrounding inflation and Federal Reserve policies.

In the U.S., consumer spending increased solidly in October, signaling sustained economic growth. However, progress in reducing inflation appeared stalled, prompting traders to anticipate a 25-basis-point rate cut at the Federal Reserve’s December meeting. While this expectation is positive, traders predict the Fed will leave rates unchanged in January and March 2025.

  • Dow Jones Industrial Average fell 136.31 points (0.31%) to 44,723.23.
  • S&P 500 declined 22.85 points (0.38%) to 5,998.78.
  • Nasdaq Composite lost 113.80 points (0.59%) to 19,061.78.

Technology stocks were the primary targets, with Dell slumping 12% and HP dropping nearly 6% after weaker-than-expected forecasts. Mega-cap stocks like Nvidia and Microsoft also faced downward pressure.

In the Asia-Pacific region, markets opened mixed. South Korea’s Kospi managed a modest recovery, up by 0.15%, after the Bank of Korea unexpectedly cut its interest rate. Meanwhile, Japan’s Nikkei dipped 0.30%, and Australia’s ASX 200 posted gains of 0.43%.
Source: Business Standard

Key Developments in Commodities

Commodity markets witnessed notable shifts driven by geopolitical developments and currency fluctuations.

  • Oil prices edged lower on Wednesday as traders assessed the potential impact of a ceasefire agreement between Israel and Hezbollah and looked ahead to the OPEC+ meeting scheduled for Sunday. Speculation is mounting that the group may delay a planned output increase. Brent crude futures inched up 0.03% to $72.83 per barrel, while U.S. WTI crude slipped 0.07% to close at $68.72 per barrel.
  • Gold prices rebounded from a one-week low, supported by a weaker U.S. dollar. Spot gold was up 0.2%, trading at $2,635.99 per ounce, while U.S. gold futures gained 0.7% to reach $2,638.60 per ounce.

Spotlight on Enviro Infra Engineers IPO Allotment

The primary market continues to buzz with activity, capturing the interest of investors across various categories. Among the key highlights is the Enviro Infra Engineers IPO, which garnered overwhelming demand during its three-day bidding period. The issue saw an overall subscription of 89.90 times, driven by robust participation from all investor segments:

  • Retail investors: 24.48 times.
  • Non-Institutional Investors (NII): 153.80 times.
  • Qualified Institutional Buyers (QIB): 157.05 times.

The allotment status for the Enviro Infra Engineers IPO will be announced today, and market participants are keenly awaiting the results. Given the strong subscription figures, the IPO has already built a reputation as one of the most sought-after offerings in the current cycle.
Source: Livemint

Other IPOs in Action

Meanwhile, several other IPOs are making headlines. The Agarwal Toughened Glass India IPO (SME) opened for subscription today, offering retail and institutional investors an opportunity to explore this niche segment. On the other hand, the allotment status for Rajesh Power Services IPO (SME) is also expected to be finalized today. The SME IPO was oversubscribed 59 times.

Additionally, two other small and medium enterprise IPOs—Abha Power and Steel and Apex Ecotech—are currently in the second day of their subscription period. These IPOs have garnered notable interest, particularly from smaller investors looking to diversify into emerging sectors.

Today marks the final day of subscription for the Rajputana Biodiesel IPO (SME). This offering has drawn attention for its focus on sustainable energy solutions, an area increasingly favored by environmentally conscious investors.

Overall, the primary market’s vibrant activity signals sustained confidence among investors, driven by sectoral diversity, growth potential, and robust market sentiment. Investors are advised to stay informed about allotment announcements and monitor listing performances to evaluate the full impact of these IPOs on their portfolios.

What Lies Ahead?

As we approach year-end, investors will closely monitor global economic data, central bank decisions, and geopolitical developments. The domestic market continues to demonstrate resilience, underscored by healthy consolidation and robust earnings expectations. With IPO activity buzzing and key global events on the horizon, the markets promise an eventful finish to 2024.

Hindustan Unilever Limited (HUL), a household name in India’s FMCG sector, has separated its ice cream business. This strategic decision is turning heads, sparking interest from both the financial markets of Dalal Street and everyday consumers on Main Street. It reflects the rising importance of the ice cream category and highlights HUL’s commitment to maximizing shareholder value.

Analysts believe the demerger presents an exciting opportunity for existing investors to gain a stake in a dedicated ice cream entity. This segment, characterized as a high-growth business, has the potential for a 15-20% compound annual growth rate (CAGR) and profit margins between 5% and 9%. Source: Mint

HUL’s Financial Performance

HUL reported a revenue of ₹59,144 crore from operations in FY23, which grew by 2% to ₹60,469 crore in FY24. Meanwhile, the company’s net profit increased by 1.5%, rising from ₹9,962 crore in FY23 to ₹10,114 crore in FY24.

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Source: BSE
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Source: BSE

Let’s explore why this decision could be a game-changer.

A Scoop of Business Potential

HUL’s ice cream segment, home to popular brands like Kwality Wall’s, Cornetto, and Magnum, may account for only 3% of the company’s total revenue, roughly ₹1,800 crore in FY24. While this might seem modest, the category has been identified as a high-growth area. However, significant investment is required to unlock its full potential. 

This separation is expected to give the ice cream business the flexibility and focus needed to thrive independently. According to the company, this move will allow the new entity to have a dedicated management team and greater flexibility to adopt strategies tailored to its unique business model. Source: Economic Times

A Rare Move in the Ice Cream Industry

Globally, pure-play publicly-listed ice cream companies are a rarity. Most ice cream operations are integrated into broader FMCG businesses. Apart from Vadilal Industries, the most prominent players in India’s ice cream market, such as Amul, Arun, Havmor, Naturals, and Baskin Robbins, remain privately owned.

HUL’s decision stands out, reflecting its confidence in the segment’s growth prospects and its ability to create significant shareholder value through this focused strategy.

Comparison Between Vadilal’s and HUL’s Ice Cream Business

Vadilal’s Ice Cream BusinessHUL’s Ice Cream Business
RevenueOperating Profit MarginRevenueRevenue Share 
Rs.1,125 Crores20%Rs.1,800 Crores3%
Source: Economic Times

What it Means for the Shareholders

For HUL shareholders, creating an independent listed entity for the ice cream business is a noteworthy value addition. It allows them to remain part of the business’s growth journey while enjoying greater transparency and a sharper operational focus.

The spin-off aims to maximize shareholder value by potentially unlocking new investment opportunities in the fast-growing ice cream market. This sector thrives thanks to rising consumer demand for indulgent and premium products.

The Growing Ice Cream Market in India

India’s ice cream industry is enjoying a rapid growth trajectory! In 2023, the market reached a noteworthy ₹228.6 billion. However, the real excitement lies in its future. Projections by IMARC Group indicate the market is set to soar to a staggering ₹956 billion by 2032, fueled by a strong compound annual growth rate (CAGR) of 17.4% from 2024 to 2032.

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Source: Imarcgroup.com

Who’s Leading the Pack?

The competitive landscape is buzzing with big players like GCMMF (Amul), Kwality Wall’s, Vadilal, Mother Dairy, Hatsun, and Cream Bell. Each brand is carving out its niche through premium offerings, affordability, or regional dominance.

What’s Driving This Growth?

Several factors fuel the rising popularity of ice cream in India:

  • Rising Disposable Incomes: People are more willing to indulge in premium and experimental flavors as incomes grow.
  • Consumer Cravings for Indulgence: Ice cream is not just a treat but an experience. Consumers are actively seeking rich, indulgent options.
  • Innovative Offerings: Leading brands are captivating the market with exciting new flavors, healthier options, and creative packaging. Brands are stepping up with exciting innovations. Creambell’s Fun Spin Range and international-inspired flavors like Green Apple and Chocky Swirl bars highlight the market’s move toward diversification and novelty. These creative offerings cater to a younger, experimental audience looking for unique and fun experiences.
  • Expanding Distribution Networks: Whether in bustling cities or remote villages, better distribution channels are making ice cream accessible to all.

Challenges of the Demerger

While the spin-off strategy can be a good decision, there are hurdles to overcome. Developing local capabilities and managing the transition without disrupting operations will be critical. Additionally, competition in the ice cream sector is fierce, with domestic and international players vying for market share. Ensuring robust growth while maintaining profitability will require strategic planning​

Main Street’s Sweet Spot

Beyond the financial markets, this move could resonate with consumers. As the ice cream business gains independence, it might expand its product range and distribution network. This would likely lead to more innovative offerings tailored to diverse consumer needs. With brands like Kwality Wall’s already enjoying a strong presence, the spin-off could further enhance customer experiences.​

What Lies Ahead?

The board has yet to finalize the separation mode, with options like demerging and listing the business or outright sale being considered. The decision is expected by year-end and will set the stage for the ice cream business’s future trajectory. This is an opportunity for HUL to streamline its focus and enhance its presence in trending demand spaces such as health and beauty.​

A Win-Win Strategy?

HUL’s ice cream spin-off exemplifies strategic foresight. While Dalal Street anticipates the financial benefits of this move, Main Street can look forward to a more dynamic and consumer-centric ice cream brand. If executed well, this separation could become the sundae of choice for investors and consumers alike.

FAQ

  1. Why is HUL demerging its ice cream business? 

    HUL’s decision to demerge its ice cream business is a strategic move aimed at unlocking the full potential of its core FMCG and its ice cream business. By separating the two, HUL can focus on specific strategies, investments, and operational efficiencies for each company. This allows for greater agility, innovation, and growth opportunities.

  2. How will this demerger impact consumers? 

    The demerger of HUL’s ice cream business is not expected to significantly impact consumers. Consumers can continue to enjoy their favorite ice cream brands, and the distribution and availability of these products will likely remain unchanged. The demerger may even lead to increased innovation and product launches in the ice cream category.

  3. How will this demerger impact the Indian ice cream market? 

    The demerger of HUL’s ice cream business is expected to impact the Indian ice cream market positively. A standalone ice cream business can focus on innovation, product development, and marketing, which can drive growth and excitement in the category. Additionally, the demerger may lead to increased competition, which can benefit consumers through lower prices and a wider variety of products.

Have you been keeping an eye on the telecom sector lately? If so, you might have noticed some exciting developments. On Tuesday, November 26, Vodafone Idea Ltd (VIL) showcased one such instance as its share price soared by 18.79% to reach an intraday high of ₹8.28, eventually closing 7.88% higher at ₹7.53.

This rally followed reports that the Union Cabinet approved a significant bank guarantee waiver for telecom operators. Let’s explain what happened, why it matters, and how it impacts Vodafone Idea and the broader telecom sector.

Source: NSE

The Bank Guarantee Waiver

The Union Cabinet’s decision to waive bank guarantees (BGs) for telecom operators has been viewed as a critical move to ease the sector’s financial burden. Historically, Indian telecom companies have been required to provide BGs for deferred payments on spectrum purchased in auctions.

Although the 2021 telecom reforms eliminated the BG requirement for spectrum acquired from 2022 onwards, obligations for earlier auctions remained. Reports indicate that telecom operators, including Vodafone Idea and Airtel, collectively owe the government over ₹30,000 crore in BGs.

The Cellular Operators Association of India (COAI) had advocated for this change, citing the need to improve cash flow and allow greater investment in network infrastructure. Vodafone Idea, the most financially strained operator, gains the most from this decision.
Source: Livemint

How It Impacts Vodafone Idea Share Price

Vodafone Idea’s financial troubles have been well-documented. The company owes over ₹24,700 crore in BGs and has struggled to meet its obligations in recent months.

  1. Missed Payments:
    • On November 1, Vodafone Idea defaulted on a BG payment of approximately ₹350 crore related to spectrum acquired in the 2012 auction.
    • In September, it missed a BG payment exceeding ₹4,600 crore for the spectrum bought in the 2016 auction.
  2. Relief from Waiver:
    By waiving BG requirements for pre-2022 spectrum payments, the government is offering Vodafone Idea immediate financial relief. The waiver reduces the company’s liability, giving it more flexibility to seek additional credit from banks.
  3. Funding Requirements:
    To sustain its operations and compete with rivals like Bharti Airtel and Reliance Jio, Vodafone Idea is seeking ₹25,000 crore in loans and ₹10,000 crore in BGs or letters of credit. The BG waiver strengthens its case for securing these funds.
  4. Performance Metrics:
    Despite its challenges, Vodafone Idea showed signs of recovery in the second fiscal quarter ending September 30:
    • Consolidated loss narrowed to ₹7,176 crore, compared to ₹8,737 crore in the same period last year.
    • Revenue from operations increased to ₹10,932 crore, up from ₹10,716 crore.
    • Average Revenue Per User (ARPU) rose to ₹166, marking a 7.8% sequential increase.

Source: Livemint

Market Reaction and Trading Activity

The news of the BG waiver sparked a significant rally in Vodafone Idea’s share price. The share price rose by 18.79%, reaching an intraday high of ₹8.28 before settling at ₹7.53, a 7.88% gain.

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Source: NSE

  • Volume Spike:
    Trading volume surged, with 18.72 crore shares exchanging hands on the BSE. This figure was substantially higher than the two-week average volume of 4.97 crore shares.
  • Turnover and Market Cap:
    The day’s turnover on the counter stood at ₹147.92 crore, with Vodafone Idea commanding a market capitalization of ₹52,483.96 crore.

Comparative Outlook with Rivals

While the bank guarantee waiver benefits all telecom operators, Vodafone Idea gains the most due to its higher BG obligations. For comparison:

  • Airtel:
    Airtel’s BG payment of ₹2,200 crore for the 2016 auction is due in September 2024.
  • Reliance Jio:
    Jio’s BG of ₹4,400 crore for the same auction is due after Airtel’s payment.

Airtel and Jio have healthier financial positions and lower outstanding BG obligations than Vodafone Idea.
Source: The Economic Times

A Step Toward Recovery

The telecom sector has been grappling with heavy debts and intense competition, especially after the introduction of Reliance Jio in 2016. Vodafone Idea, the most debt-laden player, has faced significant hurdles in maintaining operations and retaining market share.

  • Subscriber Base:
    Vodafone Idea’s total subscriber base stands at 205 million, with 125.9 million 4G subscribers, slightly down from 126.7 million in the previous quarter.
  • Fundraising Efforts:
    The company recently raised ₹24,000 crore through equity and actively seeks additional funds to support its operational needs and network expansion.

The Broader Implications

The bank guarantee waiver is not just a win for Vodafone Idea but a potential game-changer for the entire telecom industry. By improving cash flow and reducing financial strain, the move encourages greater investment in infrastructure, which is critical for the rollout of advanced technologies like 5G.

For investors, the rally in Vodafone Idea’s stock reflects renewed optimism about its ability to navigate its financial challenges. However, the path to recovery remains complex, requiring sustained efforts to improve operational efficiency and secure funding.

Conclusion

The Union Cabinet’s decision to waive bank guarantees for telecom operators marks a significant shift in policy, offering much-needed relief to the struggling sector. For Vodafone Idea, the move represents a lifeline as it works to stabilize its finances and remain competitive in a challenging market.

As the dust settles, all eyes will be on how the company leverages this relief to strengthen its position and drive long-term growth. The journey ahead is undoubtedly challenging, but the waiver provides a critical foundation for rebuilding.

The Indian stock market has been falling over the last few days, with the Nifty 50 down nearly 10% from its recent high and the Sensex following a similar trajectory. 

Market crashes and volatility has surged, with investors pulling out funds and foreign institutional investors (FIIs) turning net sellers in recent weeks. If that is not enough, you have news headlines screaming warnings about a “market bloodbath,” “the bulls lost 5-lakh crore,” and investor sentiment is at an all-time low.

But here’s an important fact: history shows that every market fall eventually leads to a rebound. Investors who invest during these falls often reap the biggest rewards. 

While most see a market crash as a disaster, seasoned investors may recognize it as an opportunity to buy high-quality stocks at discounted prices.

5 Reasons Why You Should Invest During A Market Crash

Let’s explore five compelling reasons why investing during a market crash can be a game-changing financial decision for your portfolio.

1.History Proves Markets Bounce Back

Here’s the truth: markets recover. They always have. Every crash is followed by a rebound, even if it takes time. Just look at the major market events of the past—whether it’s the dot-com bubble, the 2008 financial crisis, or the COVID-19 pandemic. The graph below will show how the markets recovered during the year after a fall. 

A graph of a market crash

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Investing during these downturns means positioning yourself to benefit when the market climbs back up. Imagine planting seeds during a storm, knowing they’ll bloom when the sun shines again. 

2.Fear Breeds Opportunity

Warren Buffett famously said, “Be fearful when others are greedy, and greedy when others are fearful.” Market crashes are fueled by fear, often leading to irrational selling. That’s where the opportunity lies.

You can identify undervalued stocks with great long-term potential by staying calm and rational when everyone panics. It’s not about timing the bottom perfectly—it’s about recognizing the value others are too scared to see.

3.Stocks Are on Sale—Grab the Bargains!

Don’t we love sales—the Great Indian Sale, Diwali Sale, Summer Special Sale, Pink Sale, and others? 

Think of a market crash as a grand clearance sale. When prices drop, solid companies with strong fundamentals suddenly become affordable. It’s like finding your favorite designer brand at a deep discount. Why wouldn’t you jump at the chance?

For example, during the 2020 pandemic-induced crash, many blue-chip stocks lost 30-40% of their value in weeks. Those who invested at those lows saw significant gains as the market rebounded. Remember, you’re not just buying stocks; you’re buying pieces of businesses—and don’t you love a good deal? We all do. 

4.Compound Growth Works Best When Started Early

Market crashes can fast-track your wealth-building journey. How? By allowing you to buy more shares at lower prices, you set yourself up for greater compound growth over time.

Picture this: if you buy a stock at ₹500 and it doubles to ₹1,000, you’ve made a 100% return. But if you buy that same stock at ₹300 during a crash and it rebounds to ₹1,000, your return is over 200%! The earlier you invest, the longer your money must grow, and the returns multiply faster when you start from a lower share price. 

5.You Build Resilience and Confidence as an Investor

Investing during a market crash isn’t just about financial gains—it’s also a crash course in emotional resilience. By sticking to your strategy and investing when others panic, you develop a mindset of confidence and discipline.

This mental toughness brings rewards in the long run, allowing you to navigate future market volatility easily. Instead of fearing the next downturn, you’ll see it as an opportunity. It’s like training your brain to remain steady during turbulence.

Market crashes are scary, no doubt about it. But they also hold immense potential for savvy investors willing to look beyond the chaos. By recognizing the opportunity, you’re not just investing in stocks—you’re investing in your financial future.

So, next time the market takes a nosedive, don’t panic. Take a deep breath, assess your options, and remember why investing during a crash could be your smartest move.

FAQ

  1. Should I invest all my money during a crash?

    No, it’s wise to diversify your investments and only use funds you won’t need in the short term. Keep an emergency fund intact.

  2. How do I know which stocks to buy during a crash?

    Look for companies with strong fundamentals, a history of resilience, and a solid long-term outlook.

  3.  What if the market doesn’t recover quickly?

    Patience is key. The recovery might take time, but history shows that markets eventually rebound.

  4. Is it risky to invest during a crash?

    Yes, all investing carries risk. However, investing during a crash often presents a better risk-reward ratio for long-term gains.

  5. How can I manage emotions while investing during a crash?

    Focus on your long-term goals, avoid checking the market daily, and stick to your investment plan.

The stock market constantly changes, and investors closely follow the money movement. Recently, Indian markets have faced a big challenge due to a record sell-off by Foreign Institutional Investors (FIIs). 

This large-scale exit has raised worries about market stability. In this uncertain situation, a key question arises: can domestic mutual funds (MFs) support the markets? Let’s break down the problem, understand its reasons, and see how mutual funds might help.

Domestic Institutional Investors (DIIs) to the Rescue

To counterbalance the effects of FII selling, Domestic Institutional Investors (DIIs) have stepped up as significant buyers in Indian equities, gaining considerable influence in the market. This growth is largely driven by mutual funds, particularly through the steady inflows from systematic investment plans (SIPs), which have become a driving force behind DII strength.

Mutual Fund SIP Inflows Surge 200%

Mutual Fund SIP inflows have grown significantly, from ₹8,000 crore in January 2021 to a massive ₹25,300 crore by October 2024—an increase of around 200%. This steady inflow has allowed Domestic Institutional Investors (DIIs) to shift from a net negative position of ₹12,000 crore to becoming net buyers with ₹10.41 lakh crore during the same period.

The ET Prime Mutual Fund Index highlights the crucial role of DIIs in stabilizing the market. With impressive returns of 37%, it has outperformed the ET Prime FPI Index, which recorded a return of 30%.

image 21
Source: ET Prime

Interestingly, retail investors led the pack two years ago, thanks to their focus on small-cap stocks and niche investments like BSE. However, the tide has turned. Today, DIIs outperform in returns and the volume of funds flowing into Indian markets, making them a critical pillar of market stability.

Impact on the Indian Market

The sustained selling by foreign institutional investors (FIIs) has had a notable impact on the Indian market, leading to significant volatility in the benchmark indices Sensex and Nifty. Mid-cap and small-cap stocks have been particularly affected.

Last month, FIIs offloaded a massive ₹1.14 lakh crore in the cash market, far exceeding the typical monthly average of around ₹12,000 crore. This sharp sell-off dented market sentiment, causing the Nifty 50 to drop nearly 9% over the past two months.

Source: ET Prime

image 22
Source: NSE

From a high of 25,849 points in September, Nifty tumbled to 24,140 points in October. It slid further to 23,263 points before recovering to 24,221 points on 25 November 2024. The index has faced a bumpy ride, influenced by global and domestic events, including China’s stimulus package, the U.S. elections, and the recent indictment of Gautam Adani in the U.S. The uncertainty has kept investors on edge, reflecting the market volatility. Source: ET Prime

FII & DII Growing Divide

Since March 2023, the gap between FII selling and DII buying has expanded. In January 2022, while FIIs sold a net ₹1.33 lakh crore compared to January 2021, Domestic Institutional Investors (DIIs) stepped in with net purchases of ₹1.16 lakh crore, almost matching the FII outflows. In February 2022,

FIIs increased their net sales to ₹1.79 lakh crore, yet DIIs continued their buying spree with net purchases of ₹1.58 lakh crore, helping to stabilize the market amid the selling pressure.

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Source: ET Prime

Sector Composition in Institutional Indices

The MF and FPI indices are predominantly composed of stocks from the financial sector. All financial stocks are performing well in the MF index except Equitas SFB. In the FPI index, most stocks, except AU Small Finance Bank and Five-Star Business Finance, have delivered returns exceeding 14%. Notable performers in the MF index include MCX, Fortis, and Kalpataru Projects, with mutual funds holding almost 42% of Kalpataru’s stake.

In the FPI index, top performers include Zomato, PB Fintech, M&M, and 360 One Wam. According to Axis Securities, Zomato has built a robust business model with solid growth potential, driven by increased market share and greater revenue visibility over the long term.

Source: ET Prime

What Lies Ahead?

The road ahead for Indian markets depends on several factors:

  • FII Sentiment: The return of FIIs will largely hinge on stabilizing global economic conditions and making Indian equity valuations more attractive.
  • MF Strategy: Mutual funds need to maintain their disciplined investment approach. Expanding their asset base and enhancing retail participation will further strengthen their role.
  • Policy Interventions: The government and regulatory bodies can intervene to make Indian markets more appealing to foreign and domestic investors. Measures like incentivizing long-term investments or easing restrictions for FIIs could help.

Why Retail Investors Should Stay Calm

As an individual investor, it’s easy to feel alarmed by headlines of record sell-offs. But here’s why staying invested makes sense:

  • Market Cycles Are Normal: Markets go through ups and downs. Historical data shows that staying invested during downturns yields better returns when markets recover.
  • Power of SIPs: By continuing your SIPs during market corrections, you effectively buy more units at lower prices, boosting returns in the long term.
  • Diversification Is Key: To minimize risk, ensure your portfolio is diversified across asset classes and sectors.

The Bigger Picture

While the current FII sell-off is undoubtedly troubling, it also highlights the growing maturity of Indian markets. The resilience shown by mutual funds and retail investors speaks volumes about the strength of domestic participation. As India continues its economic growth journey, these factors will be crucial in shaping a more robust and self-reliant market.

Record FII sell-offs might shake the markets, but they also test their resilience. Domestic mutual funds, backed by a growing base of confident retail investors, are proving stabilizing. However, challenges persist, and the journey ahead will require strategic policy support, disciplined investment approaches, and sustained investor confidence.

FAQs

  1. What are SIPs?

    A Systematic Investment Plan (SIP) is a simple investment strategy where a fixed sum of money is regularly invested in a mutual fund scheme. This disciplined approach helps investors average the cost of investment over time, reducing the impact of market volatility.

  2. Why are SIPs becoming so popular?

    SIPs have gained immense popularity due to their numerous benefits. They promote disciplined investing, allow for rupee-cost averaging, and offer flexibility regarding investment amounts and frequencies. Additionally, SIPs are suitable for novice and experienced investors, making them a popular choice for wealth creation.

  3. How do SIPs help in times of market volatility?

    During market downturns, SIPs allow investors to buy more units of a mutual fund at a lower cost. This strategy, known as rupee-cost averaging, can help investors accumulate more units over time, potentially leading to higher returns in the long run.

  4. What is the impact of FII outflows on the Indian market?

    Foreign Institutional Investors (FIIs) have been significant players in the Indian stock market. However, recent FII outflows have raised concerns about the market’s stability. While this may lead to short-term volatility, the consistent inflow of SIP money has helped mitigate the impact of FII selling. DIIs, powered by SIPs, have emerged as a key support for the Indian market.

Were you one of the investors eagerly awaiting the allotment status of NTPC Green Energy’s IPO? The allotment has been finalized, and the IPO has garnered significant attention due to its focus on renewable energy and its strong financial performance.

In this article, we’ll explain how to check your allotment status, share insights on the latest grey market premium (GMP), and update you on the company’s listing date.

NTPC Green Energy IPO Details

The IPO of NTPC Green Energy, a Delhi-based renewable energy company, opened for bidding between November 19 and November 22, 2024. With a price band of ₹102-₹108 per share and a lot size of 138 shares, the company raised a total of ₹10,000 crore. This IPO was an entirely fresh issue comprising 92,59,25,926 equity shares.

Subscription Status

The IPO received decent interest from investors, with an overall subscription of 2.55 times by the final day:

  • Retail Investors: Subscribed 3.59 times the allotted quota.
  • Qualified Institutional Buyers (QIBs): Subscribed 3.51 times.
  • Non-Institutional Investors (NIIs): Subscribed 0.85 times.

The strong response from retail and institutional investors reflects confidence in NTPC Green Energy’s renewable energy initiatives.

NTPC Green Energy IPO GMP Today

The Grey Market Premium (GMP) for NTPC Green Energy IPO currently stands at ₹111 per share, approximately 2.78% higher than the upper price band ₹108. While the GMP fluctuates based on market sentiment, it suggests a modest premium over the issue price, pointing to a steady listing outlook.

Company Overview

Incorporated in April 2022, NTPC Green Energy Limited is a wholly-owned subsidiary of NTPC Limited, India’s largest power producer. The company focuses on renewable energy projects through both organic development and acquisitions.

As of August 31, 2024, NTPC Green Energy operates:

  • 3,071 MW from solar projects
  • 100 MW from wind projects across six states

By June 30, 2024, the company’s portfolio expanded to 14,696 MW, including:

  • 2,925 MW of operational projects
  • 11,771 MW of contracted and awarded projects

With strong backing from NTPC Limited and an experienced team, NTPC Green Energy is well-poised to lead India’s renewable energy transition.

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Source: SEBI

Financial Strength

The company has shown remarkable growth. Revenue increased by 1,094.19% between FY23 and FY24, indicating its capability to scale operations and generate significant profits in a competitive renewable energy sector.

Listing Date

NTPC Green Energy’s shares are scheduled to list on the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) on Wednesday, November 27, 2024. Investors eagerly await this listing to assess its market performance.

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Source: SEBI

How to Check NTPC Green Energy IPO Allotment Status

On the Bombay Stock Exchange (BSE) Website

  1. Visit the BSE Allotment Status Portal.
  2. Under the “Issue Type,” select Equity.
  3. Choose NTPC Green Energy Limited in the dropdown for “Issue Name.”
  4. Enter your Application Number and PAN Card ID.
  5. Click “I am not a Robot” and click the Search button to view your allotment status.

On KFin Technologies Portal (Registrar to the IPO)

  1. Visit the KFin Technologies Allotment Status Portal.
  2. Select NTPC Green Energy Limited in the dropdown menu.
  3. Choose a mode to check the status:
    • Application Number
    • Demat Account Number
    • PAN ID
  4. Specify your application type: ASBA or Non-ASBA.
  5. Enter the required details and complete the captcha verification.
  6. Click Submit to access your allotment status.

What to Expect After Allotment

If you have been allotted shares, you will receive a confirmation from your broker or the registrar. Once the shares are listed on the stock exchange, you can start trading them. Remember to watch the stock market news and announcements from NTPC Green Energy for any updates or important information.

Conclusion

The NTPC Green Energy IPO has drawn significant attention for its focus on renewable energy and robust financial performance. With allotment finalizations completed and listing just days away on November 27, 2024, investors can look forward to observing its market debut.

The modest Grey Market Premium (GMP) hints at stable market sentiment, reflecting cautious optimism and confidence in the company’s long-term potential.

For investors, staying updated on listing day developments and carefully monitoring the stock’s performance post-listing will be crucial. As NTPC Green Energy continues to expand its renewable energy footprint, its IPO marks a significant milestone in India’s green energy journey.

Rail Vikas Nigam Limited (RVNL) shares have been rising, recording an impressive 10% surge in value. This sharp uptick follows a major announcement that RVNL’s joint venture (JV) RVNL-SCPL has secured a Letter of Acceptance (LoA) from Eastern Railway for a multi-track railway line project worth ₹838 crore. 

Source: Economic Times

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Source: Money Control

Although RVNL recently reported a decline in quarterly profit, its stock has demonstrated impressive strength, surging by 130% in 2024.

AD 4nXcdt5Jfcx 03
Source: NSE 

RVNL’s Role in Railway Infrastructure

Rail Vikas Nigam Limited (RVNL) specializes in executing a wide range of railway projects, including:

  • New railway lines, doubling, and gauge conversion, railway electrification, and metro projects
  • Construction of workshops and major bridges, including cable-stayed bridges and development of institution buildings.

Financial Performance of RVNL

Market Cap in Crore (as of 25-11-24CMP (as of 25-11-24)HighPE RatioROCE %3 Yrs Return %
₹ 90, 688₹ 435₹ 64770.918.7129
Source: Screener.in

In the quarter ending September 2024, RVNL reported a revenue of ₹4,869 crore, reflecting a slight decline of 0.9% compared to ₹4,910 crore in the same quarter of the previous year. The profit for the quarter stood at ₹303 crore, marking an 18% drop from the ₹370 crore recorded during the corresponding period last year. Source: Screener.in

A Landmark Achievement for RVNL and Its JV Partner

The ₹838 crore contract from Eastern Railway is no ordinary deal. The project focuses on essential rail infrastructure upgrades, aligning with the government’s push for modernizing and expanding the railway network. The specifics of the contract include engineering, procurement, and construction (EPC) services, highlighting the technical and strategic expertise of RVNL and its JV partner.

Key Details of the Project

  • Scope of Work

The project involves various critical tasks, including earthwork in cutting and filling, blanketing and construction of minor and major bridges, construction of Road Under Bridges (RUB), Road Over Bridges (ROB), retaining walls, establishing level crossings, side drains, and catchwater drains and track-related works, including P.Way work and ancillary works to support the multi-track railway BG line construction

  • Project Timeline & Partnership Details

The project, which is part of constructing a multi-track Broad Gauge (BG) railway line, will be executed between Kalipahari and Pradhankhuta. It is being undertaken by the RVNL-SCPL Joint Venture, where RVNL holds a 74% stake, and SCPL owns the remaining 26%. The total project is valued at ₹837.67 crore, with an estimated completion timeline of 36 months.

Market Reacts Positively

The announcement of the contract win sent RVNL shares soaring by 10%. Market experts have noted that the contract will likely contribute significantly to RVNL’s revenue in the coming quarters. With the infrastructure sector gaining momentum across India, this contract positions RVNL to tap opportunities in the near future. Source: Economic Times

Why This Contract Matters

  • Strengthening Core Expertise
    The project allows RVNL to showcase its technical and operational strengths in railway construction and modernization. This win builds on the company’s track record of successfully delivering large-scale projects.
  • Boosting Financial Performance
    A project of this scale adds substantial value to RVNL’s order book, improving revenue visibility for the next few years. This is a reassuring signal for both investors and stakeholders.
  • Supporting National Infrastructure Goals
    By contributing to Eastern Railway’s infrastructure development, RVNL is playing a key role in enhancing the efficiency and capacity of India’s rail network. This aligns with the government’s vision for sustainable and robust infrastructure growth.

What’s Driving Confidence?

Investors are optimistic about RVNL for several reasons:

  • Diversified Portfolio
    RVNL continues to win contracts across various regions and project types, minimizing risks associated with dependency on specific markets.
  • Government Backing
    RVNL benefits from policy support as a public sector enterprise, ensuring steady growth opportunities in India’s expanding infrastructure sector.

What Lies Ahead for RVNL?

The ₹838 crore contract is a significant milestone but also a stepping stone for more growth. RVNL is well-poised to capitalize on India’s ambitious railway modernization plans, with the potential for more high-value contracts in the pipeline. The company’s strategic focus on delivering quality while maintaining cost efficiency will be key to sustaining this momentum.

Conclusion

The 10% surge in RVNL shares is more than a market reaction. Eastern Railway project not only boosts RVNL’s financial outlook but also reaffirms its role as a critical player in India’s infrastructure growth story.

FAQs

  1. Why did RVNL shares surge 10%? 

    RVNL shares experienced a significant 10% surge because the company secured a major contract from the Eastern Railway. This contract win positively indicates the company’s growth prospects and future earnings potential, boosting investor confidence.

  2. Should investors consider buying RVNL shares after this surge? 

    While the recent surge in RVNL shares is encouraging, investors should conduct thorough research and consider factors like the company’s financial performance, future growth prospects, and overall market conditions before making investment decisions. Consulting with a financial advisor can also provide valuable insights.

  3. What are the potential risks associated with investing in RVNL shares? 

    Like any investment, RVNL shares carry inherent risks. These risks include fluctuations in the stock price, economic uncertainties, regulatory changes, and project execution challenges. It’s essential to diversify investments and manage risk effectively.

The Indian SME IPO market is heating up! This week, six companies are set to make their public market debut, including Rajesh Power Services, Rajputana Biodiesel, Apex Ecotech, Abha Power and Steel, Agarwal Toughened Glass India, and Ganesh Infraworld. With a combined target of ₹410 crores, these IPOs offer a diverse range of investment opportunities. Let’s explore what each IPO has to offer and why they could be worth your attention.

Rajesh Power Services IPO

Rajesh Power Services IPO is a public offering to raise ₹160.47 crores. This involves a fresh issue of shares worth ₹93.47 crores and an offer for sale of shares worth ₹67.00 crores. The IPO will open for subscription on November 25, 2024, and close on November 27, 2024. The shares are expected to list on the BSE SME on December 2, 2024. Investors can apply for a minimum of 400 shares, with a minimum investment of ₹134,000.

Offer Price₹319 – ₹335 per share
Face Value₹10 per share
Opening Date25 November 2024
Closing Date27 November 2024
Total Issue Size (in Shares)4,790,000
Total Issue Size (in ₹)₹160.47 Cr
Issue Type Book Built Issue IPO
Lot Size400 Shares
Listing at BSE, SME
Source: Rajesh Powers

Objectives of the Rajesh Power Services IPO

The funds raised will be used for:

  1. Capital Expenditure:
    • Purchase of cable identification, testing, and fault location equipment.
    • Setting up a 1300 KW DC Solar Power Plant.
    • Development of expertise in Green Hydrogen production and associated equipment like Electrolysers.
  2. Additional Working Capital Requirements.
  3. General Corporate Purposes.

Grey Market Premium Rajesh Power Services IPO (GMP)

As of November 25, 2024, the GMP for Rajesh Power Services IPO is ₹90. This indicates a potential listing price of ₹425 per share, offering a potential return of 26.87%.

Overview of Rajesh Power Services IPO Company

Established in 1971, Rajesh Power Services Limited is a leading provider of consultancy services to state transmission and distribution companies, private utilities, and industries. The company specializes in:

  • EHV Underground Cables and Transmission Lines
  • EHV AIS/GIS Substations
  • HV/MV/LV Underground Cable Laying and Overhead MVCC Conductor Installation
  • Distribution Network Revamping
  • Power Supply Arrangements for Solar Power Plants
  • Operation and Maintenance Services

Rajesh Power Services has a strong client base, including prominent names such as GIFT City, Gujarat Metro Rail Corporation, IFFCO, Adani Renewables, Reliance Industries, Torrent Power, and more.

Financial Strength

Rajesh Power Services has demonstrated strong financial performance in recent years. Between FY23 and FY24, the company’s revenue increased by 39.72%, and its profit after tax (PAT) surged by 285.44%. This growth trajectory highlights the company’s robust financial position and its potential for future growth

SWOT Analysis of Rajesh Power Services 

STRENGTHSWEAKNESSES
Long-standing presence in the power sector since 1971

Diverse client base, including government entities and private giants.

Strong revenue and profit growth trajectory.
Expertise in renewable energy and IT-driven energy solutions.

Focus on project-based revenue, which can be cyclical.

High capital expenditure requirements for scaling operations.
OPPORTUNITIESTHREATS

Expansion in renewable energy with growing demand for solar and green hydrogen projects.

Rising government focus on infrastructure development and sustainability.

Potential for growth in IT-based power management solutions.

Competitive market with several established players in EPC and power consulting.Regulatory risks in the energy sector.

Volatility in raw material and operational costs.

Rajputana Biodiesel IPO

Rajputana Biodiesel is set to raise ₹24.70 crores through its IPO. The entire issue is a fresh issue of 19 lakh shares. The IPO will open for subscription on November 26, 2024, and close on November 28, 2024. The shares are expected to list on the NSE SME on December 3, 2024. Investors can apply for a minimum of 1000 shares, with a minimum investment of ₹130,000.

Offer Price₹123 – ₹130 per share
Face Value₹10 per share
Opening Date26 November 2024
Closing Date28 November 2024
Total Issue Size (in Shares)1,900,000
Total Issue Size (in ₹)₹24.70 Cr
Issue Type Book Built Issue IPO
Lot Size1000 Shares
Listing at NSE, SME

Source: SEBI

Objectives of the Rajputana Biodiesel IPO

The funds raised from the IPO will be utilized for:

  • Loaning to a subsidiary company for expansion of its manufacturing facility
  • Funding working capital requirements
  • General corporate purposes

Grey Market Premium of Rajputana Biodiesel IPO (GMP)

As of November 25, 2024, the GMP for Rajputana Biodiesel IPO is ₹70. This indicates a potential listing price of ₹200 per share, offering a potential return of 53.85%.

Company Overview

Founded in 2016, Rajputana Biodiesel is a biofuel producer and supplier. The company’s primary products include bio-diesel, glycerine, and fatty acids. Its manufacturing facility, located in Rajasthan, has an approved capacity of 30 kiloliters per day and a current installed capacity of 24 kiloliters per day.

Financial Strength

Rajputana Biodiesel has demonstrated strong financial growth. Between FY23 and FY24, the company’s revenue increased by 128%, and its profit after tax (PAT) surged by 168%. This i growth trajectory highlights the company’s robust financial position and its potential for future growth. 

SWOT Analysis of Rajputana Biodiesel 

STRENGTHSWEAKNESSES
Significant growth in revenue and profitability.

Strong and diverse product portfolio in biofuels and related products.

Established manufacturing facility with significant production capacity.

Single production facility.

High reliance on subsidiary (NEPL) for scaling operations.
OPPORTUNITIESTHREATS

Consistent growth in demand for biofuels due to environmental concerns and government policies.

Potential for expansion into international markets for biodiesel and by-products.

Increasing adoption of waste-to-energy solutions, such as used cooking oil.

Rising competition in the biofuels market.

Price volatility in raw materials like cooking oil and methanol.

Regulatory and policy risks in the renewable energy sector.

APEX Ecotech IPO

Apex Ecotech is set to raise ₹25.54 crores through its IPO. The entire issue is a fresh issue of 34.99 lakh shares. The IPO will open for subscription on November 27, 2024, and close on November 29, 2024. The shares are expected to list on the NSE SME on December 4, 2024. Investors can apply for a minimum of 1600 shares, with a minimum investment of ₹116,800.

Offer Price₹71 – ₹73 per share
Face Value₹10 per share
Opening Date27 November 2024
Closing Date29 November 2024
Total Issue Size (in Shares)3,499,200
Total Issue Size (in ₹)₹25.54 Cr
Issue Type Book Built Issue IPO
Lot Size1600 Shares
Listing at NSE, SME

Surce ApexEcotech

Objectives of the IPO

The funds raised from the IPO will be utilized for:

  • Meeting working capital requirements
  • General corporate purposes
  • Meeting public issue expenses

Grey Market Premium (GMP)

As of November 25, 2024, the GMP for Apex Ecotech IPO is ₹0. This indicates a potential listing price of ₹73 per share.

Company Overview

Founded in 2009, Apex Ecotech specializes in providing water and wastewater treatment solutions. The company offers a range of services, including:

  • Raw water treatment
  • Effluent and sewage treatment
  • Sludge dewatering
  • Wastewater recycling
  • Zero Liquid Discharge (ZLD) systems
  • Operation and maintenance services

Apex Ecotech has a strong customer base, including renowned companies like Aditya Birla Group, Ashok Leyland, Apotex Research, and many more. The company has successfully implemented ZLD systems achieving high recovery rates for water reuse.

Financial Strength

Apex Ecotech has achieved significant financial growth. Its revenue and profit after tax (PAT) witnessed impressive growth rates of 53.1% and 88.31%, respectively, between FY23 and FY24. This strong financial performance positions the company for future success.

SWOT Analysis of Apex Ecotech 

STRENGTHSWEAKNESSES
Strong expertise in water and wastewater treatment

Diversified client base, including reputed companies

Proven track record in delivering complex projects
Focus on sustainable and eco-friendly solutions
Strong financial performance and growth prospects

Availability of a limited number of key personnel
Potential exposure to regulatory changes and environmental risks

Competition from established players in the industry.
OPPORTUNITIESTHREATS

Growing demand for water and wastewater treatment solutionsIncreasing focus on environmental sustainability

Expansion into new markets and geographies
Potential for partnerships and collaborations with other companies

Economic slowdown or recession
Fluctuations in raw material prices

Intense competition from established players
Potential for technological disruptions

Abha Power and Steel IPO

Abha Power and Steel is set to raise ₹38.54 crores through its IPO. This involves a fresh issue of shares worth ₹31.04 crores and an offer for sale of shares worth ₹7.50 crores. The IPO will open for subscription on November 27, 2024, and close on November 29, 2024. The shares are expected to list on the NSE SME on December 4, 2024. Investors can apply for a minimum of 1600 shares, with a minimum investment of ₹120,000.

Offer Price₹75 per share
Face Value₹10 per share
Opening Date27 November 2024
Closing Date29 November 2024
Total Issue Size (in Shares)5,139,200
Total Issue Size (in ₹)₹38.54 Cr
Issue Type Fixed Price Issue IPO
Lot Size1600 Shares
Listing at NSE, SME
Source: Abha Cast

Objectives of the IPO

The funds raised from the IPO will be utilized for:

  • Modernizing and upgrading manufacturing facilities
  • Funding working capital requirements
  • General corporate purposes

Grey Market Premium (GMP)

As of November 25, 2024, the GMP for Abha Power and Steel IPO is ₹0. This indicates a potential listing price of ₹75 per share.

Company Overview

Founded in 2004, Abha Power and Steel manufactures iron and steel products. The company’s product range includes mild steel, manganese steel, stainless steel, and low—and high-alloy castings.

The company’s manufacturing facility, located in Bilaspur, Chhattisgarh, has an installed capacity of 14,400 metric tonnes per annum. It caters to various industries, including steel, power, cement, and railways.

Financial Strength

Abha Power and Steel’s financial performance has been mixed. Between FY23 and FY24, the company’s revenue decreased by 6%, while its profit after tax (PAT) increased by 170%. This indicates potential growth opportunities but also highlights challenges in revenue growth.

SWOT Analysis of Abha Power and Steel 

STRENGTHSWEAKNESSES
Experienced management team

Diverse product rangeStrong customer base in various industries
ISO 9001:2015 certification

Dependence on a few key customers

Exposure to fluctuations in raw material prices
Potential for operational challenges
OPPORTUNITIESTHREATS

Growing demand for steel products in IndiaGovernment initiatives to boost the manufacturing sector

Potential for expansion into new product segments and markets

Intense competition from established players

Economic slowdown or recession

Changes in government policies and regulations

Agarwal Toughened Glass India IPO

Agarwal Toughened Glass India is set to raise ₹62.64 crores through its IPO, which is a fresh issue of 58 lakh shares. The IPO will open for subscription on November 28, 2024, and close on December 2, 2024. The shares are expected to list on the NSE SME on December 5, 2024. Investors can apply for a minimum of 1200 shares, with a minimum investment of ₹129,600.

Offer Price₹105 – ₹108 per share
Face Value₹10 per share
Opening Date28 November 2024
Closing Date2 December 2024
Total Issue Size (in Shares)5,799,600
Total Issue Size (in ₹)₹62.64 Cr
Issue Type Book Built Issue IPO
Lot Size1200 Shares
Listing at NSE, SME
Source. SEBI

Objectives of the Agarwal Toughened Glass IPO

The funds raised from the IPO will be utilized for:

  • Purchasing machinery for the existing manufacturing unit
  • Repaying borrowings
  • Meeting working capital requirements
  • General corporate expenses

Grey Market Premium (GMP) of Agarwal Toughened Glass IPO

As of November 25, 2024, the GMP for Agarwal Toughened Glass India IPO is ₹10. This indicates a potential listing price of ₹118 per share, offering a possible return of 9.26%.

Company Overview of Agarwal Toughened Glass IPO

Incorporated in 2009, Agarwal Toughened Glass India is a manufacturer of tempered glass products. The company’s products find applications in various industries, including:

  • Shower doors
  • Refrigerator trays
  • Mobile screen protectors
  • Bulletproof glass for diving masks
  • Plates and cookware

The company is ISO 9001:2015 certified and caters to a diverse clientele, including offices, hotels, institutions, banks, and more.

Financial Strength

Agarwal Toughened Glass India’s financial performance has been mixed. Between FY23 and FY24, the company’s revenue decreased slightly by 0.25%, while its profit after tax (PAT) surged by 795.66%, indicating significant improvement in profitability. However, revenue growth remains challenging.

SWOT Analysis of Agarwal Toughened Glass India 

STRENGTHSWEAKNESSES
Extensive product portfolio catering to diverse industries.

ISO 9001:2015 certification, ensuring quality management standards.

Strong profitability growth (nearly 8x PAT increase year-on-year).Established testing and quality control processes.

Decline in revenue growth in FY 2023-24, reflecting possible challenges in market demand or pricing.

Dependency on industrial clients, making it vulnerable to economic cycles.
OPPORTUNITIESTHREATS

Growing demand for tempered glass across residential and commercial projects.

Expansion opportunities in international markets for specialized glass products.

Increasing usage of glass in innovative applications, such as smart homes and automotive technology.

Fierce competition from numerous players in the glass manufacturing industry.

Vulnerability to fluctuations in raw material costs, which can erode profit margins.

Potential impact of evolving regulations on industrial glass applications.

Ganesh Infraworld IPO

Ganesh Infraworld is set to raise ₹98.58 crores through its IPO, which is a fresh issue of 118.77 lakh shares. The IPO will open for subscription on November 29, 2024, and close on December 3, 2024. The shares will list on the NSE SME on December 6, 2024. Investors can apply for a minimum of 1600 shares, with a minimum investment of ₹132,800.  

Offer Price₹78 – ₹83 per share
Face Value₹5 per share
Opening Date29 November 2024
Closing Date3 December 2024
Total Issue Size (in Shares)11,876,800
Total Issue Size (in ₹)₹98.58 Cr
Issue Type Book Built Issue IPO
Lot Size1600 Shares
Listing at NSE, SME
Source: SEBI

Objectives of the Ganesh Infraworld IPO

The funds raised from the IPO will be utilized for:

  • Meeting long-term working capital requirements
  • General corporate purposes

Grey Market Premium (GMP) of Ganesh Infraworld IPO

As of November 25, 2024, the GMP for Ganesh Infraworld IPO is ₹9. This indicates a potential listing price of ₹92 per share, offering a potential return of 10.84%.

Company Overview

Incorporated in 2017, Ganesh Infraworld is a construction company offering a wide range of construction services. The company specializes in:  

  • Civil and Electrical Infrastructure Projects: Construction of residential, commercial, and industrial buildings, as well as electrical infrastructure projects like substations and power lines.  
  • Road and Rail Infrastructure Development Projects: Construction of roads and railway infrastructure, including OHE installation.  
  • Water Infrastructure Development Projects: Construction of water distribution systems, water treatment plants, and reservoirs.

Ganesh Infraworld has a diverse client base, including government organizations and private companies. The company operates in various states across India.  

Financial Strength

Ganesh Infraworld has demonstrated strong financial growth. Between FY23 and FY24, the company’s revenue increased by 116%, and its profit after tax (PAT) surged by 198%. This growth trajectory highlights the company’s robust financial position and its potential for future growth.

STRENGTHSWEAKNESSES
Diverse expertise across civil, electrical, rail, and water infrastructure projects.

Strong financial performance with significant revenue and profit growth.

Established relationships with key clients in multiple industries.

Dependence on government projects like Har Ghar Jal Mission, which are subject to policy changes.

High operational costs in EPC services, potentially impacting margins.
OPPORTUNITIESTHREATS

Increasing demand for infrastructure development in India, especially in water distribution and railways.

Potential for expanding operations into untapped states and regions.

Opportunities to secure contracts under government initiatives promoting infrastructure development.

Competition from established players in the construction and EPC sectors.

Regulatory and environmental approvals could delay project timelines.

Vulnerability to economic cycles impacting infrastructure investment.

Conclusion:

As the Indian SME IPO market continues to gain momentum, this week’s offerings present a diverse range of investment opportunities. While these IPOs hold promise, investors must conduct thorough research or consult with financial advisors to make informed investment decisions. By understanding the fundamentals of each company, their growth potential, and the risks involved, investors can navigate this exciting market and potentially reap significant rewards.

What if starting your own business didn’t require significant investments, warehouses, or a steep learning curve? What if you could turn your entrepreneurial dream into reality from the comfort of your home?

One platform has made this dream a reality, taking the world by storm. It’s helped millions—especially women and homemakers—start successful businesses with little to no investment. It’s not just changing lives; it’s shaking up the entire e-commerce game.

Are you curious about the $3.9 billion-dollar company behind this revolution? Read on…

Story of The Meesho Storytelling 00 02

Wasn’t Enough

Budding entrepreneurs Vidit Aatrey and Sanjeev Barnwal, a dynamic IIT Delhi alumni duo, had a big idea: Fashnear, a platform to connect local fashion retailers with customers for on-demand delivery.

The idea was fantastic on paper but didn’t work that way. Customers didn’t want to limit their shopping to their neighborhood stores, and retailers wanted to expand their reach but weren’t ready to jump into the e-commerce world just yet.

Story of The Meesho Storytelling 00 03

The E-Commerce Gap

Vidit and Sanjeev looked at the bigger picture of e-commerce — big players dominated cities, but smaller towns and villages were left behind.

Shopkeepers and resellers sold products on WhatsApp but were stuck with local deliveries. Women sold products on Facebook and WhatsApp but couldn’t scale up their businesses.

A huge opportunity to empower these small businesses became clear. So, in late 2015, Meesho (meri shop in Hindi) was born to help anyone, especially those with insufficient funds, start their own online business.

Story of The Meesho Storytelling 00 04

For Small Businesses To Sell

Meesho made selling online easy for small shops, manufacturers, and resellers. Women and other resellers could start businesses from home without worrying about stocking up.

The platform handled everything—shipping, cash-on-delivery, and returns—so suppliers could focus on what they do best: creating and selling great products..

Story of The Meesho Storytelling 00 05

The Key to Success

Meesho faced one of the toughest challenges, earning the trust of small businesses and resellers for an online-only platform.

Many were skeptical, but Vidit and Sanjeev kept it simple and user-friendly.

They even held workshops and shared success stories to inspire and educate resellers, going the extra mile to win them.

Story of The Meesho Storytelling 00 06

A Thriving Community

The focus on empowering small businesses and individuals paid off. The platform quickly became a favorite for resellers, especially from smaller cities and rural areas.

Resellers saw a chance to earn extra money and were excited to be part of Meesho’s journey. By building trust and transparency, Meesho proved itself to be a reliable partner for its resellers.

Story of The Meesho Storytelling 00 07

To Big Dreams

Vidit and Sanjeev saw a bigger opportunity with the platform’s rising popularity. They decided to transform Meesho into a full-fledged e-commerce platform, offering various products at affordable prices.

However, the big question was managing logistics and inventory on a much larger scale. Meesho tackled this by partnering with third-party logistics providers and streamlining their supply chain.

Story of The Meesho Storytelling 00 08

Led To A Big Vote of Confidence

Meesho’s innovative approach and rapid growth caught the eye of big investors.

In 2019, Facebook made history by investing directly in Meesho, the first Indian startup to receive such a significant investment. By 2023, the platform had raised over a billion dollars.

This massive investment helped the company expand its product range, upgrade its technology, and improve customer service.

Story of The Meesho Storytelling 00 09

The Challenges of Evolution 

While Meesho grew bigger, rising costs, logistics, and competition from giants like Flipkart and Amazon made things more challenging.

To tackle these, Meesho changed its game plan and shifted from a social commerce model to a direct-to-consumer one.

While this meant reorganizing the business, it unfortunately led to layoffs.

Story of The Meesho Storytelling 00 10

On Organic Growth

Meesho prioritized sustainable growth, focusing on organic strategies like word-of-mouth referrals, building strong customer relationships, and working closely with suppliers to optimize pricing while maintaining high standards.

Data analytics helped the company to predict demand trends and make informed decisions.

Story of The Meesho Storytelling 00 11

Catering to Diverse Needs

Unlike traditional e-commerce platforms focusing mainly on urban areas, Meesho tailored its offerings to match users’ tastes, preferences, and purchasing power in smaller towns and rural regions.

This hyper-local approach shined through in its product catalog, featuring items designed to suit regional and cultural preferences.

Story of The Meesho Storytelling 00 12

Meesho’s Growth Story

Meesho’s business approach has taken the Indian e-commerce scene by storm today. With 50 lakhs+ products across 650+ categories, it caters to 14 crore+ customers.

Powered by a network of 11 lakh+ sellers and reaching over 19,000 pin codes, Meesho is a major player in the Indian market.

Partnering with over 20,000 manufacturers from 500+ towns, it offers a diverse and ever-growing product range.

Story of The Meesho Storytelling 00 13

Future Ahead

Meesho is on an incredible journey, but balancing growth with profitability is challenging.

With its strong brand and unique approach, it’s got everything it takes to stay ahead—whether that means expanding globally, improving logistics, or adding exciting new products.

The future looks bright for this e-commerce trailblazer!

Frequently asked questions

Get answers to the most pertinent questions on your mind now.

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What is an Investment Advisory Firm?

An investment advisory firm is a company that helps investors make decisions about buying and selling securities (like stocks) in exchange for a fee. They can advise clients directly or provide advisory reports and other publications about specific securities, such as high growth stock recommendations. Some firms use both methods, like Research & Ranking, India’s leading stock advisory company, specializing in smart investments and long-term stocks since 2015.

An investment advisory firm is a company that helps investors make decisions about buying and selling securities (like stocks) in exchange for a fee. They can advise clients directly or provide advisory reports and other publications about specific securities, such as high growth stock recommendations. Some firms use both methods, like Research & Ranking, India’s leading stock advisory company, specializing in smart investments and long-term stocks since 2015.

An investment advisory firm is a company that helps investors make decisions about buying and selling securities (like stocks) in exchange for a fee. They can advise clients directly or provide advisory reports and other publications about specific securities, such as high growth stock recommendations. Some firms use both methods, like Research & Ranking, India’s leading stock advisory company, specializing in smart investments and long-term stocks since 2015.

An investment advisory firm is a company that helps investors make decisions about buying and selling securities (like stocks) in exchange for a fee. They can advise clients directly or provide advisory reports and other publications about specific securities, such as high growth stock recommendations. Some firms use both methods, like Research & Ranking, India’s leading stock advisory company, specializing in smart investments and long-term stocks since 2015.