Gujarat Fluorochemicals (GFL) announced today that the board of its subsidiary, GFCL EV Products (GFCL EV), has approved the raise of Rs 1,000 crore at an equity valuation of ~ Rs 25,000 crore. The promoters of the INOXGFL Group led the round in the fund raise along with several marquee investors, including the family offices of some of the largest business groups in India. The funds will be utilized for the capex requirements of the company as it scales up to capitalize on the large-scale global opportunities in the electric vehicles (EV) / energy storage systems (ESS) space.
Goldman Sachs lowers Indian stocks to neutral from overweight on slowing growth (23-10-2024)
Slowing economic growth dents outlook for corporate earnings, Goldman Sachs said
Gold rate today: US election, Brics, Mid East war may take gold to Rs 80200 (23-10-2024)
Gold rate today: As gold prices are expected to be highly volatile, especially due to Brics headlines, buying the dips is the preferred strategy
Persistent Systems shares rally 6% after reporting 23% YoY jump in Q2 PAT (23-10-2024)
Shares of Persistent Systems rose by 5.7% following its Q2 results. The company reported a 23.4% increase in profit after tax, reaching Rs 325 crore year-on-year. Revenue saw a 20% rise, standing at Rs 2,897.15 crore. The total expenses for the quarter also increased compared to the previous fiscal year.
Par Drugs & Chemicals Ltd (23-10-2024)
Results – Q2 FY’25
Some fabulous numbers posted by Par!
If we take a closer look at the quarterly numbers, we can point at:
- Highest ever OPM at 33%
- Other income of 1Cr
- Is this one-off growth? Well, the last time Par saw a jump in revenue of a similar scale (marked in the diagram below), the revenue was sustained for the next quarters too. Can we assume a few good quarters ahead?
Margins
Highest ever margins, and that is a testament of Par’s focus on constantly improving their product quality and efficiency. In their annual report, they mentioned introducing high-value products that might have helped boost their margins.
Over the past year, we have continued to expand our product portfolio, targeting new application segments and introducing high-value products that resonate with diverse market needs.
Another reason could be that magnesium prices are at a 3 year low!
Par’s API portfolio primarily consists of magnesium salts, and their margins are directly linked to fluctuation in magnesium price. The price of magnesium can be correlated to their margins in the past as well. This was also mentioned by the company in their annual report (you may check my previous post on this thread).
Valuation
Currently on Screener, in Pharmaceuticals – Indian – Bulk Drugs companies, there are only 3 profitable companies (out of 34) with a lower PE than Par (PE-15), and none of them are as financially sound.
Under the radar currently, with markets looking relatively week. Could we see a possible re-rating after these results?
Bajaj Finance shares surge 4% after Q2 results. Should you buy, sell, or hold? (23-10-2024)
Bajaj Finance shares jumped 4.2% following a 13% net profit increase to Rs 4,000 crore for Q2FY25. Despite missing estimates, revenue rose 28% to Rs 17,090 crore. AUM grew 29%, but loan losses and provisions also increased. Analysts remain positive but have lowered target prices.
Diwali Investment Ideas: Gold vs Silver – Which is the best bet for 2024? (23-10-2024)
We sat down with Naveen Mathur, Director of Commodities and Currencies at Anand Rathi Share and Stock Brokers, to get a clearer picture of where gold and silver are headed and how you can make the most of your money this Diwali.
ETMarkets Smart Talk: Banking and consumption sectors to outperform by next Diwali, says Naveen Kulkarni (23-10-2024)
The stock markets have been relatively stable over the last two months since the beginning of October. Although the market did reach new highs at times, overall returns have been modest.
Weather experts divided over emergence of La Nina (23-10-2024)
APEC Climate Centre predicts the weather event from December