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Fears of Civil Unrest Stalk the Markets (02-11-2024)
Wall Street advisers say investors are increasingly anxious about the possibility of election-related violence.
SBI MF becomes first to surpass ₹10 lakh crore AUM, outpacing ICICI and HDFC (02-11-2024)
Top 16 mutual funds control 90 per cent of industry AUM
CARE Ratings reaffirms Utkarsh SFB’s LT rating at ‘A+’ with ‘stable’ outlook (02-11-2024)
Utkarsh Small Finance Bank said that CARE Ratings has reaffirmed the bank’s long-term rating at ‘CARE A+’ with ‘stable’ outlook.
Modi’s promise to revive Bihar sugar mills ‘not met’, has he developed diabetes, asks RJD’s Misa Bharti (02-11-2024)
RJD MP Misa Bharti criticizes PM Modi for not fulfilling his promise to revive Bihar’s sugar mills, questioning if he has diabetes as an excuse. She also dismisses the ‘One nation one poll’ as a gimmick and condemns offensive political remarks against women and inciting violence.
Godrej Agrovet ~ Animal Feed, Crop Protection, Palm Oil, Dairy & Processed Foods (02-11-2024)
Godrej Agrovet –
Q2 FY 25 results and concall updates –
Revenues – 2449 vs 2571 cr, down 5 pc
EBITDA – 221 vs 215 cr, up 3 pc ( margins @ 9 vs 8.3 pc )
PAT – 104 vs 105 cr
Segment wise revenues , EBIT –
Animal feed – 1205 vs 1242 cr , EBITDA @ 71 vs 57 cr ( margins @ 6 vs 4.6 pc ). Cattle feed degrew YoY due weak milk prices. Broiler and Layer feed volumes grew by 5.5 and 10.5 pc YoY
Vegetable Oil – 434 vs 435 cr, EBITDA @ 73 vs 68 cr ( margins @ 17 vs 15.6 pc ). Despite a 13 pc decline in fresh fruit bunch arrivals, segment revenues did not decline due improved realisations for Crude Palm Oil and Palm Kernel Oil. Also, GOI has raised the import duties on crude sunflower, soybean and palm oils wef Sep 24
Crop protection – 198 vs 243 cr, EBITDA @ 85 vs 77 cr ( margins @ 43 vs 30 pc !!! ) Erratic rainfalls led to lower spraying opportunities of herbicides by farmers and higher sales returns – leading to a de-growth in topline
Astec Lifesciences – 99 vs 111 cr, EBITDA @ (-) 17 vs (-) 2.4 cr ( margins @ (-) 18 vs (-) 2 pc ). Weakness in generic business continues. CDMO volumes were affected by cautious approach adopted by key customers
Creamline Dairy – 403 vs 390 cr, EBITDA @ 18 vs 12 cr ( margins @ 4.4 vs 3 pc ). Sales of VAP stood @ 32 pc of sales
Godrej Tyson Foods – 197 vs 237 cr, EBITDA @ 5 vs 19 cr ( margins @ 2.7 vs 8.2 cr )
JV – ACI Godrej Agrovet – 410 vs 438 cr
Expecting a very strong H2 in Astec Life’s CDMO business. That should propel Astec’s CDMO revenue growth for full FY 25 to > 400 cr vs 270 cr in FY 24
Share of VAP in Creamline dairy business fell to 32 pc vs 40 pc in Q1 due prolonged rainy season which led to lower sales of curd, buttermilk, lassi etc. Company expects a strong rebound in VAP sales in Q3 and Q4
Vegetable oils should see a better H2 vs H2 LY both because of increased import duties and absence of over-supply in the mkt
Q2 is generally the weakest Qtr of the year for Godrej Tyson business – because of Savan, Shradh periods. This business should see good pick up wef Q3. Also, the chicken and mutton prices were unusually high ( due increased incidence of disease ) in Q2 leading to margin compressions
Expecting a reduction in receivables as they go into H2. Receivables generally build up in Q2 due to the crop protection business. This should also lead to significant debt reduction by end of current FY
In the CDMO business, company currently has 9 molecules in the manufacturing phase. They did not disclose the number of molecules in the development phase
Disc: holding, biased, not SEBI registered, not a buy/sell recommendation
Ranvir’s Portfolio (02-11-2024)
Godrej Agrovet –
Q2 FY 25 results and concall updates –
Revenues – 2449 vs 2571 cr, down 5 pc
EBITDA – 221 vs 215 cr, up 3 pc ( margins @ 9 vs 8.3 pc )
PAT – 104 vs 105 cr
Segment wise revenues , EBIT –
Animal feed – 1205 vs 1242 cr , EBITDA @ 71 vs 57 cr ( margins @ 6 vs 4.6 pc ). Cattle feed degrew YoY due weak milk prices. Broiler and Layer feed volumes grew by 5.5 and 10.5 pc YoY
Vegetable Oil – 434 vs 435 cr, EBITDA @ 73 vs 68 cr ( margins @ 17 vs 15.6 pc ). Despite a 13 pc decline in fresh fruit bunch arrivals, segment revenues did not decline due improved realisations for Crude Palm Oil and Palm Kernel Oil. Also, GOI has raised the import duties on crude sunflower, soybean and palm oils wef Sep 24
Crop protection – 198 vs 243 cr, EBITDA @ 85 vs 77 cr ( margins @ 43 vs 30 pc !!! ) Erratic rainfalls led to lower spraying opportunities of herbicides by farmers and higher sales returns – leading to a de-growth in topline
Astec Lifesciences – 99 vs 111 cr, EBITDA @ (-) 17 vs (-) 2.4 cr ( margins @ (-) 18 vs (-) 2 pc ). Weakness in generic business continues. CDMO volumes were affected by cautious approach adopted by key customers
Creamline Dairy – 403 vs 390 cr, EBITDA @ 18 vs 12 cr ( margins @ 4.4 vs 3 pc ). Sales of VAP stood @ 32 pc of sales
Godrej Tyson Foods – 197 vs 237 cr, EBITDA @ 5 vs 19 cr ( margins @ 2.7 vs 8.2 cr )
JV – ACI Godrej Agrovet – 410 vs 438 cr
Expecting a very strong H2 in Astec Life’s CDMO business. That should propel Astec’s CDMO revenue growth for full FY 25 to > 400 cr vs 270 cr in FY 24
Share of VAP in Creamline dairy business fell to 32 pc vs 40 pc in Q1 due prolonged rainy season which led to lower sales of curd, buttermilk, lassi etc. Company expects a strong rebound in VAP sales in Q3 and Q4
Vegetable oils should see a better H2 vs H2 LY both because of increased import duties and absence of over-supply in the mkt
Q2 is generally the weakest Qtr of the year for Godrej Tyson business – because of Savan, Shradh periods. This business should see good pick up wef Q3. Also, the chicken and mutton prices were unusually high ( due increased incidence of disease ) in Q2 leading to margin compressions
Expecting a reduction in receivables as they go into H2. Receivables generally build up in Q2 due to the crop protection business. This should also lead to significant debt reduction by end of current FY
In the CDMO business, company currently has 9 molecules in the manufacturing phase. They did not disclose the number of molecules in the development phase
Disc: holding, biased, not SEBI registered, not a buy/sell recommendation
India initiates verification patrolling and responds to international issues (02-11-2024)
On another front, India responded to U.S. sanctions targeting certain Indian entities, emphasizing its strong legal and regulatory framework regarding strategic trade and nonproliferation. Jaiswal highlighted India’s participation in key multilateral export control regimes, including the Wassenaar Arrangement, the Australia Group, and the Missile Technology Control Regime. He stated that the sanctioned transactions do not violate Indian laws, reflecting Indias longstanding non-proliferation stance. The Indian government is engaging with all relevant departments to educate and ensure compliance by Indian companies with export control provisions. Furthermore, India is dialoguing with U.S. authorities to resolve these issues.
Vijay Kedia on what to buy and avoid in Samvat 2081 (02-11-2024)
For 15 years they have not done anything. You just imagine even Hong Kong index was some 32,000 or 34,000 in 2008. It is still hovering around 22,000 or 20,000 or something and 14 years and we are I do not know eight times plus or nine times plus we do not know
Mallikarjun Kharge getting personal on PM’s political observations on Karnataka surprising: BJP MP Lahar Singh Siroya (02-11-2024)
Karnataka BJP MP Lahar Singh Siroya was surprised by Congress president Mallikarjun Kharge’s personal comments about Prime Minister Modi’s remarks on Congress government’s guarantees. Siroya noted Kharge remained silent on allegations against his family’s trust but responded to Modi. Kharge criticised Modi’s government, calling it deceitful and manipulative, and termed Modi’s 100-day plan a publicity stunt.