Global supply chains are changing, impacting India’s economy and stock market. India is becoming a manufacturing hub. Sectors like defence and railways are booming. FMCG and automobiles are showing growth. Technology stocks are performing well. IT, metals, and realty are facing challenges. India’s economy is growing, attracting foreign investment.
Posts in category All News
Market capitalisation to GDP: Is the Buffett ratio giving us any signal? (23-11-2024)
The Buffet Ratio measures whether stock markets are overvalued or undervalued. Many countries, including the USA and Japan, have experienced periods of overvaluation. India has seen significant growth in its market cap, raising concerns about potential overvaluation. However, structural changes and policy shifts in India might justify this growth.
Ola Electric – Full Stack EV play? (23-11-2024)
The pace at which ola scaled leads to such service issues. Even management admitted that the service capabilities didn’t grow in line with production and distribution. The problem is the industry they are playing in. 1st it’s capital intensive. I agree that this forms as entry barrier. But at the same time the capital requirements might lead to continuos rising of capital which inturn leads to shareholders value dilution. As we know they will only survive if they retain market share but this inturn leads to continuos capital requirements. They attaining decent profitability in such a competitive industry will not be a normal feat. And coming to r&d looking at attrition and easy availability of tech everyone wants to play ev theme. Will they be the lone survivor and dominant player like indigo or airtel(I don’t know). Let’s be frank, this is purely founder play according to me. Agree it or not Bhavish is one of the few passionate enterpreneurs that India has ever produced. Not comparing him with Elon but the guy is passionate!! But businesses don’t work on just passion. I want this company to succeed. But the deep pocket and reputed competition(existing players and new players like aether), bad reputation, easy entry in ev segments all may hamper his vision. In automobile sector valuation of the company plays crucial role especially for rising capital in future. If market perception is not good, value erosion will be that much faster.
Disc: have small tracking portion in ola. But completely respect the man behind ola.( Happy to take counter argument. Here to learn:))
Wockhardt: an NiCE story (23-11-2024)
It has been roughly a year since taking this bet. It has played out way better than we initially expected. It was so complex a topic that we did not expect the market to understand and reward the way it has done. Our market is more mature than we give it credit for. Now, taking stock of what has happened in the past year – a few important things have changed that we should account for.
- Diabetes portfolio strength – Insulin glargine is seeing tailwinds due to WHO push towards biosimilars as well as capacities shifting towards GLP-1. This seems to be helping Wockhardt with exports picking up considerably of late
- CLSI 64 mg/mL susceptibility breakpoint for 10 gram negative pathogens which has potential to increase market size. Its nice to see an esoteric subject like AST breakpoints being understood by the market
- Capital raised in QIP 1 and QIP 2 gives strong institutional validation to the thesis
- Successful execution of trial so far both in US and in India for 5222. This the market has incrementally priced in alongside trial completion (One of the fears was a slippage based on past behavior but so far things have gone smooth with near 100% enrolment completion for 5222 in global trials and 100% recruitments for meropenem resistance trial in India as per recent Chairman’s letter to shareholders)
- Compassionate use in 38 patients with 100% success rate. To put this in context, we knew of only 2 cases based on papers published in our initial post.
- Significantly bigger market sizes being thrown around for 5222
- QIP2 money raised will be used to pare debt which will help strengthen balance sheet and also reduce interest outgo and thereby help the PnL become PAT positive
- Research costs should come down post completion of WCK 5222 phase 3 which will also help improve profitability
- MIQNAF (Nafithromycin) has had a soft launch this week. The market size in India for this could be 500 Cr as per the talks. The talks in the first half are very good to understand AMR while the chairman speaks around 2:30:00 mark
It could not have gone down any better than this in this past year. While our initial valuation of the company was 25k Cr when it was trading at 4k Cr levels, it may not be outlandish to consider further upside based on all the things that have transpired in the past year. Seen together, the seemingly small changes over the year completely change the overall dynamic of the business.
Disc: Invested
Life insurers turn to policies with high value (23-11-2024)
Life insurers shifted their focus to selling high-value policies in October as the transition to new surrender value norms, effective October 1, limited their ability to roll out all products in their portfolio. This led to a 40 per cent year-on-year (Y-o-Y) drop in the number of policies sold in October. Additionally, distributors engaged in a fire sale of policies in September due to uncertainty about the impact of the new norms on their commission structures.
Time technoplast (23-11-2024)
” We are pleased to announce that the Company has received an APPROVAL from the Nodal Agency, Petroleum and Explosives Safety Organization (PESO) for the manufacture and supply of HIGH- PRESSURE TYPE-3 FULLY WRAPPED FIBRE REINFORCED COMPOSITE CYLINDERS (6.8 Litres). These HIGH-PRESSURE CYLINDERS WILL FIND USAGE FOR STORING HYDROGEN TO POWER FUEL CELL DRIVEN UNMANNED AERIAL VEHICLES AND DRONE APPLICATIONS.
ThisisasignificantmilestonemakingTimeTechnoplastLtd.—theFIRSTCOMPANYININDIAtoreceive such an Approval for Manufacture of Type-3 Fully Wrapped Fibre Reinforced Composite Cylinders for Hydrogen Powered Fuel Cell, Unmanned Aerial Vehicles (UAV’S) & Drones. The Company is involved in developing additional sizes for the same application.
This confirms our unwavering commitment to “MAKE IN INDIA’ and advancing ‘sustainable green energy solutions, cementing our leadership in the growing Hydrogen Energy Sector. This follows our earlier announcement dated 20″ June, 2024, when we were accorded APPROVAL OF HIGH PRESSURE TYPE-4 (NON-METALLIC) COMPOSITE CYLINDERS FOR CASCADE STORAGE AND TRANSPORTATION FOR HYDROGEN.
TYPE-3_ FULLY WRAPPED FIBRE REINFORCED COMPOSITE CYLINDERS FOR HYDROGEN POWERED UAV’S / DRONES:
The current technologies to power UAV’s & Drones are through conventional batteries which are rather heavy and only offer limited time and distance travel. Type-3 Composite Cylinders offers higher power to weight ratio being light weight and carries energy dense hydrogen. The reduced weight allows higher load carrying capacity, longer flying times and dispensing the need to charge very frequently. This has been made possible by using the cutting-edge materials with latest technology, making them highly efficient and eco friendly alternative to traditional powering sources.
Key Benefits of Hydrogen-Powered Drones e Higher power to weight ratio
e Extended Range & Flying Time.
e Lightweight & High Payload Capacity. e Eco-Friendly.
e Faster Refuelling or Recharge.
e Lower Operating Costs.
Application
Defence
Surveillance & Monitoring e =Agricultural application
Aerial photography
Search & Rescue
Cargo delivery
As UAV’s and Drones continue to play a pivotal role for the above applications, the demand for high performance, long range, environmentally friendly alternatives to conventional power sources have never been higher. The UAV and Drone market currently valued at approximately USD 30 Billion. With projected CAGR growth rate of 11% to reach USD 60 Billion by 2032 according to the publicly available market data.
The approval from PESO bolsters our position as a local manufacturer of high technology solutions for adoption of sustainable energy solutions within aerospace sector. We are excited to be at the forefront of this transformative change in India’s Drone Industry.
We extend our sincere gratitude to al our stakeholders for their continued support in helping us achieve this significant milestone. Together, we are driving progress, advancing sustainable technologies, and contributing to a greener future.
Source: https://www.bseindia.com/xml-data/corpfiling/AttachLive/afecce3e-71c1-49c3-8e59-c219a11f6bb5.pdf