The exodus of foreign investments from Indian equity markets continued unabated, with FPIs pulling out nearly Rs 20,000 crore in the last five trading sessions on higher valuations of domestic stocks and shifting their allocation to China. As a result, foreign portfolio investors (FPIs) have turned net sellers in the equity market, with total outflows reaching Rs 13,401 crore for 2024 so far. Going ahead, the FPI selling trend is likely to continue in the near term till data indicate the piossibility of a trend reversal.
Posts in category All News
India is now the biggest exporter of fuel to EU (10-11-2024)
India’s export of fuels like diesel to the European Union jumped 58 per cent in the first three quarters of 2024, with a bulk of them likely coming from refining discounted Russian oil, according to a monthly tracker report. The EU/G7 countries in December 2022 introduced a price cap and an embargo on the imports of Russian crude oil in a bid to cripple Kremlin’s revenue and create a vacuum in its funding for the invasion of Ukraine.
Manappuram Finance (10-11-2024)
in the gold loan, microfinance area, the possibility of collusion to defraud is very high. There were even murders of the collection agent by a group of women where they borrowed and instead of paying back to the agent every week, they colluded and murdered her. Here in the gold loan business, substitution, theft, robbery at every transit stage now mirrors early ATM thefts(insider jobs) when ATMs were being pushed.
As it is, the RBI has warned on the lending practice in this area. I personally feel, this is a high risk investment area purely from a finance POV; high interest rates, higher NPAs. Also culturally, if someone is desperate to pledge their gold, they’re most likely over their head in other loans or issues somewhere else.
Wealthy investors may take pre-IPO route after losing QIB tag (10-11-2024)
Large family offices and ultra-high-net-worth individuals, who typically establish their own AIFs and invest via the QIB route but are otherwise ineligible for QIB status individually, will be affected by SEBI guidelines, said experts
Taiwan Sees a Higher Price for U.S. Support as Trump Returns to Power (10-11-2024)
The president-elect’s call for Taiwan to spend more on its own defense and his complaints about its semiconductor dominance may herald a tenser relationship.
AVALON’s long-term revenue trajectory will continue to be strong. TP ₹920 (+30%) (10-11-2024)
AVALON's long-term revenue trajectory will continue to be strong due to 1) the addition of new customers in the US & Indian markets & 2) order inflows from high-growth/high-margin industries such as Clean Energy, Mobility & Industrials. TP ₹920 (+30%)
AVALON's long-term revenue trajectory will continue to be strong. TP ₹920 (+30%)
Wayanad: Clash breaks out between Congress workers and CRPF during Priyanka Gandhi’s roadshow (10-11-2024)
A clash occurred between a Congress worker and CRPF during Priyanka Gandhi Vadra’s roadshow in Wayanad. Priyanka Gandhi conducted a roadshow in Wayanad. She met people from the Christian community. She assured them of her support. Congress leader Sachin Pilot claimed a historic victory for Priyanka Gandhi in Wayanad. He stated that Congress and UDF cadre are united.
JB CHEMICALS — value buy (10-11-2024)
JB Chemicals –
Q2 FY25 results and concall highlights –
Revenues – 1001 vs 882 cr, up 13 pc
Gross margins @ 66.2 pc – flat YoY
EBITDA – 285 vs 251 cr, up 13 pc ( margins flat yoy @ 28.5 pc )
PAT – 175 vs 151 cr, up 16 pc ( due reduction in finance costs from 10 cr to 2cr due sharp reduction in gross debt )
Gross Debt @ 82 cr vs 357 cr on 31 Mar
Cash on Books @ 421 cr
Capex spends for H1 FY 25 @ 49 cr
Breakdown of Q2 revenues –
Domestic formulations – 588 cr, up 22 pc ( excluding the Opthal portfolio acquired in Jan 25, YoY growth was at 12 pc vs IPM growth of 7 pc ). Domestic business now constitutes 59 pc of revenues vs 55 pc at the end of Sep 24. Cilacar, Cilacar-T, Metrogyl, Sporolac, Nicardia, Rantac, Razel – company’s leading brands continue to do well. The acquired Othalmology portfolio ( from Novartis ) grew by 19 pc – @ 57 vs 48 cr YoY. Company has a dedicated field force of 100 + MRs for this division
International formulations – 300 cr, up 14 pc. South Africa and US business registered double digit growths. Russian business grew in high single digits
CMO – 94 cr, down 19 pc – due deferment of orders from Q2 to Q3. Expect to see strong Q3 and Q4 for the CMO division
APIs – 19 cr, down 20 pc
Company’s mix of Chronic : Acute sales in domestic mkt at 48:52 vs 37:63 in Mar 19. Chronic share has been inching up year after year
Company’s 5 brands ( Cilacar, Rantac, Metrogyl, Cilacar-T, Nicardia ) feature in top 150 brands in India. Their brand wise annual sales are as follows –
Cilacar ( Anti – Hypertensive ) – 431 cr
Rantac ( Antacid ) – 359 cr
Metrogyl ( Anti-Bacterial ) – 218 cr
Cilacar -T ( Anti – Hypertensive ) – 199 cr
Nicardia ( Anti – Hypertensive ) – 189 cr
Their fast growing emerging brands include – Sporolac ( probiotic ), Azmarda ( used to treat chronic heart failure ), Razel ( used for management of dislipidemia ) and the portfolio of Ophthalmology brands acquired from Novartis ( currently generating an annual sales run rate > 200 cr ). Razel and Sporolac brands have started clocking annual sales of 90 cr and 135 cr respectively
Current MR strength @ 2300+. MR productivity @ Rs 7 lakh + per month
Company is among the top 5 Contract manufacturer of Lozenges in the world. Annual CMO sales are > 430 cr. Expected to be a high growth area
Company’s manufacturing facilities are located @ Panoli ( Gujarat ) – 03 facilities, Ankleshwar ( Gujarat ) – 01 facility and Daman – 01 facility
Excluding the Ophthalmology portfolio, Gross margins improved by 100 bps ( 1 pc ) in Q2 vs Q2 LY ( as the Opthal portfolio has structurally lower margins )
Guiding for full year EBITDA margin band of 26-28 pc for FY 25 ( FY 24 margins were at 26 pc )
Expect the CMO business to reach $ 100 million ( from $ 50 million currently ) annual run rate in 3-5 yrs timeframe. Seeing good business momentum in this segment
Azmarda continues to grow strongly. Should be able to grow this brand @ mid teen rate in the foreseeable future. Razel brand is growing at even higher rates
India business’s volume growth in Q2 was 5 pc vs flattish volume growth for IPM
Capex spends lined up for H2 @ 50-55 cr
When the company acquired Othal – branded portfolio of Novartis India, they were covering aprox 6k ophthalmologists. Company has expanded that coverage to 13k+ ophthalmologists and plan to take it to 16k+ by next FY – this is again a high growth portfolio for the company
Metrogyl franchise ( ie Metrogyl + brand extensions ) is growing in high single digits. Rantac franchise is growing in low single digits
Despite being big brands, Cilacar + Cilacar T continue to grow volumes @ 12-14 pc for last 3-4 yrs
Company has lined up a lot of new product launches ( aprox 20 products ) in the branded generics space for SA + Russia mkts – beginning Q3 next FY. This should accelerate the growth in these geographies in FY 26, 27
Continue to participate in the 2000 cr probiotics mkt with their brand – Sporolac. This is a high growth area. Expecting Sporolac franchise ( ie Sporolac + brand extensions ) to keep growing in healthy double digits
Company has lined up a couple of Injectable products and a throat spray product to be launched under their CMO division
Disc: holding, biased, not SEBI registered, not a buy/sell recommendation