These 5 stocks hit 52-week highs, rallied up to 15% in a month (14-10-2024)
The Sensex gained 592 points on Monday, closing at 81,973. Five BSE 100 stocks hit their 52-week highs, suggesting strong performance and potential for future growth.
SC refuses to entertain plea against LG’s power to nominate 5 MLAs to J-K Assembly (14-10-2024)
The Supreme Court of India dismissed Ravinder Kumar Sharma’s plea challenging the Lieutenant Governor of Jammu and Kashmir’s authority to nominate five MLAs, urging the petitioner to approach the High Court first. Concerns have been raised by parties, including Congress and PDP, about the potential impact on democratic processes.
Board of Wealth First Portfolio Managers recommends first interim dividend (14-10-2024)
Of Rs 8 per share
Sula vineyards – pioneers in indian wines (14-10-2024)
I think the slow down in top line is apparent – although if I wanted to give the management the benefit of doubt, then there may be several one-offs in Q1 and Q2 FY25 that may have resulted in sluggish numbers – as explained below
- Q1 FY25 headwinds: Ban on sale of alcohol due to elections, Pune Porsche incident resulting in bar closures (based on a quick google search Only 23 pubs in Pune city are authorised: RTI reveals – Hindustan Times)
- Q2 FY25 headwinds: Karnataka policy to reduce excise seems to have resulted in lower supplies by manufacturers until policy officially notified (Rates of premium liquor come down in Karnataka – The Hindu), Delhi excise portal malfunction (https://indianexpress.com/article/cities/delhi/excise-portal-up-and-running-after-weeks-of-malfunction-relief-for-liquor-traders-9599023/)
In any event, these could also be excuses – but thought of at least presenting the other side as indicated by the management.
Looking at the numbers in the table below more closely – I am only focusing on Own Brand sales here – as a general conclusion, growth has slowed at the Total Own Brands level .
| Q1 FY24 | Q2 FY24 | Q3 FY24 | Q4 FY24 | Q1 FY25 | Q2 FY25 | |
|---|---|---|---|---|---|---|
| Own brands revenue by categories (Rs mn) | 1,017 | 1,268 | 1,928 | 1,129 | 1,146 | 1,272 |
| Elite | 751 | 932 | 1,485 | 848 | 814 | 1,018 |
| Premium | ||||||
| Economy | 266 | 336 | 443 | 281 | 332 | 254 |
| Popular | ||||||
| Own brands revenue growth by categories | 29.9% | 11.9% | 3.9% | 9.1% | 12.7% | 0.3% |
| Elite / Premium | 39% | 15% | 7.4% | 14.3% | 8.4% | 9.2% |
| Economy / Popular | 10% | 4% | -6.3% | -4.0% | 24.7% | -24.3% |
However, there is a difference between the segements – Premium / Elite is still growing – e,g. it was 9% YoY in Q2 FY25. This is much less than the suggested mid-teens growth guided in Premium / Elite (please see excellent youtube video from @amit151190 above). If the headwinds highlighted above are fair, then perhaps they may be able to pick up growth again. This is a clear amber flag.
The Economy / Popular segment is gyrating in a far more dramatic fashion: +25% in Q1 and -25% in Q2! This is something to understand better after the results are out / Q2 conference call. If I had to hypothesise, this could be related to the change in distribution approach. Since they appointed a third party distributor for Economy / Popular in Q1, they may have pushed extra volumes in that quarter and are normalising in Q2. The H1 FY25 growth for Economy / Popular is -3% – so this still looks challenging (perhaps exacerbated by the headwinds mentioned above?)
There could be a positive note on the financials for Q2 though – as the Elite / Premium contributed 80%, there should be a bump in margins? So the EPS growth may not be as flat. Still to be seen when results are out though.
In conclusion, several warning flags are flashing – but for me they are more amber than red at this stage – however, they do merit tracking. Numbers are not great – but probably not as bad as they may appear at first glance?
Anyone with alternate interpretations of the numbers?
Disc: Invested with a near full position so likely to be biased. Not a SEBI registered advisor and not investment advice
HCL Tech Q2 Results: Cons PAT jumps 10.5% YoY to Rs 4,235 crore, beats estimates (14-10-2024)
The company achieved a revenue of Rs 28,862 crore from operations, marking an 8.2% increase compared to the same period last year.
HCL Tech declares interim dividend of Rs 12 per share, fixes record date (14-10-2024)
The Board of HCL Tech on Monday declared an interim dividend of Rs 12 per share for the financial year 2024-25. The company has fixed a record date as October 22 for the same.
Congress engages in politics of lies, people aware of this deception: Haryana CM Saini (14-10-2024)
Haryana Chief Minister Nayab Singh Saini criticizes Congress for dishonesty, asserting public awareness and support for BJP’s initiatives under Prime Minister Modi. He highlighted achievements in agriculture, armed forces, and sports. Saini praised Assam’s BJP-led government and expressed confidence in its future, noting improved governance and scheme benefits for the poor.
Share market update: Most active stocks of the day in terms of traded value (14-10-2024)
The NSE Nifty index closed 163.71 points up at 25127.95
Hi-Green Carbon Ltd – Play on Renewable energy endeavoring wealth from waste (14-10-2024)
Did anyone attend the AGM, if yes can you please share some of the key takeaways from the meet? Thanks.