Key beneficiaries include:
1. Garden Reach Shipbuilders & Engineers (#GRSE):
👉 The new procurement of 31 WJFACs aligns with GRSE's production capabilities, positioning it as a significant beneficiary.
👉 Water Jet Fast Attack Crafts (WJFACs): GRSE has a history of delivering WJFACs to the Indian Navy, such as the INS Tarasa.
2. Hindustan Aeronautics Limited (#HAL):
👉 Advanced Light Helicopters (ALH): HAL is the manufacturer of the ALH Dhruv, which is integral to India's coastal security and surveillance. The approval for six additional ALHs directly benefits HAL.
👉 Sukhoi SU-30 MKI Overhaul: HAL is responsible for the assembly and maintenance of the SU-30 MKI fleet, making it a key player in the approved overhaul projects.
3. Bharat Electronics Limited (#BEL):
👉 Electronic Warfare Suites (EWS): BEL specializes in defense electronics, including EWS for aircraft. The procurement of EWS with jammer pods and radar warning systems for SU-30 MKI aircraft is expected to involve BEL.
PNB Hsg Fin mngmt Says Growth In Prime Book Will Be 9%
Current Retail Book Is At ₹68,000 Cr
Need To Grow At 17-18% Το Τouch 1 Lakh Cr Of Retail Book By FY27
Growth In Affordable Housing Book Will Be Higher In Roshni Home Loans
Entire chemicals basket , Q2FY25 , financial performance updates, which are the stocks in chemicals you see value in ?
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VST TILLERS
See 10-15% growth in Tillers, 15-20% in Tractors, 2X in Power Weeder this year
Look at >20% revenue growth in this year with 11-13% margins
Target 2000 Cr rev in FY26
International at 12-13% of sales, to be 25% in next 2 yrs
Eyeing M&A
Bajaj Auto mngmt Says Gap In VAHAN & Wholesales Mainly Because Of Huge Surge In Files At RTOS
Difference Is Of Only 3,000 Units In Top 3 Position Holders In EV
Nigeria Retails At 36,000 For The Month, Hope To Hold Steady In December
Will Try To Beat Industry Growth With Upcoming New Launches
Gap Between Wholesales & Retail That We Are Seeing, Is Nothing Unusual
CDMO 🎯
$ 200 Bn business,Projected to grow to $ 300 Bn in 5 yr
Current market share for India is 7 Bn USD, China is at 25 BN USD
Sector growth+Some shift from China can take india from 7 BN to 20 BN USD - 3x Market in next 5 years
Alisha Moopen Aster DM Mngmt Says Merger of CARE hospitals is one of the largest transactions this year
• Combined synergies include scalability which is important for Indian mkt
• The deal is EPS accretive & will see margin improve going forward
• Will see addl 10-15% EBITDA expansion in next 24-36 months
• Revenue CAGR for combined entity should be in the range of 18-20%
Morning Update 1st December :
Stocks in news
- RBLBANK & Bajaj Finance decided to stop issuance of new co-branded credit cards
- KAYNES Kaynes Tech plans semiconductor subsidiary IPO in 5 years
- KPIGREEN The company won Coal India Limited's tender to set up a 300 MWAC solar PV plant at GIPCL’s Solar Park, Khavda, Gujarat.
- ZYDUSWELL is in the process to buy 1.86% stake of NaturellIndia.
- DIXON to Manufacture Google Pixel Phones
- VISHNU Company has completed the acquisition of JPPL at an Enterprise Value of ₹ 52 cr
- PROTEAN The Board approved applying for listing the company's equity shares on NSE's main board. The application has been submitted.
- COCHINSHIP Wins order of 1000Cr. The estimated contract value is above Rs.1,000 crore and the estimated duration for the project is around 5 months
- CESC Purvah Green Power Pvt Ltd, a CESC subsidiary, acquired 100% of Bhojraj Renewables Energy Pvt Ltd For Rs 4.66 Cr, making it a step-down subsidiary effective today.
- CANTABIL Company has opened 7 New Showrooms/ Shops at different location in India during the month of November 2024.
Quick Takeaways
-Coffee prices at 47-year high on Brazil crop concerns
-IFDI Inflows into India Rise 43.1% to $13.6 Billion in Q2 FY24
-SriLanka's consumer prices fell by 2.1% in November, the highest deflation rate recorded by the economically fragile island nation since 1961.
Few of interesting chemical company for next 3 to 5 yr perspective one can study
DEEPAK NITRITE
ATUL LTD
PAUSHAK LTD
SRF LTD
FINE ORGANIC
PRIVI SPECIALITY
DYNEMIC PRO
LAXMI ORGANIC
SHREE PUSHKAR CHEMICAL
DIAMINE CHEMICAL
Vimal Kejriwal of KEC International Says
Order inflow target of ₹25,000 cr in FY25, have already done ₹16,000 cr; expecting Q4 to be better for order inflows
Maintaining revenue growth rate of 15% for FY25 and FY26
See visibility for 5-6 years in power transmission segment
Don't have a large 11 position in rallways; have become selective in this segment
9-10% margin target for FY26; FY25 margins to be at 7.5%
Don't have a large 11 position in rallways; have become selective in this segment
• 9-10% margin target for FY26; FY25 margins to be at 7.5%
There has been a significant bump up in the int markets; international pipeline in US and Mexico is very large
There has been a significant bump up in the int markets; international pipeline in US and Mexico is very large
Tilaknagar says Launched Luxury brandy 'Monarch Legacy', received export orders
Will distribute Samsara Gin & Sitara Rum
FY25 Guidance Revenue at Rs.1600-1700 cr
Appreciates 'Imperial Blue' doesn't clarify on interest in buying company
Future Outlook:
Management is confident of achieving significant growth driven by increasing order book and market demand.
Plans for an experience center in Delhi to showcase acoustic solutions and enhance market presence.
Committed to enhancing operational efficiencies through ERP implementation and strategic hiring.
Challenges and Market Dynamics:
H1 revenue decline attributed to project execution timelines and milestone-based revenue recognition.
Seasonal impacts on project execution due to monsoon rains affecting construction timelines.
Management remains optimistic about the second half of the fiscal year, historically stronger in revenue generation.
Customer Segments:
Serving a diverse range of customers, including defense organizations (HAL, DRDO), automotive companies (Maruti, Honda), and large project management firms (L&T, Tata Projects).
Notable projects include noise control solutions for HAL’s fighter plane engine testing facilities and Tata Steel plant.
Product Offerings:
Manufacturing acoustic enclosures for turbines, compressors, and other noisy equipment.
Offering sound test chambers for various industries, including home appliances and automobiles.
Development of B2C products such as soundproof doors and windows, targeting residential markets.
DAC Approves ₹21,772 Cr Defence Proposals 🇮🇳🛡
Key Approvals:
🔹Procurement of 31 Water Jet Fast Attack Crafts (NWJFACs) for maritime operations and anti-piracy missions.
🔹120 Fast Interceptor Crafts (FIC-1) to enhance coastal defence and escort missions.
🔹Electronic Warfare Suite (EWS) with jammer pods and radar warning systems for SU-30 MKI aircraft.
🔹6 Advanced Light Helicopters (ALH) for coastal security and surveillance.
Additional Approvals:
🔹Overhaul of T-72, T-90 tanks, BMPs, and #Sukhoi fighter aircraft to extend operational life.
Logistic Sector 🚛
Market Size:
The Indian logistics market was valued at approximately $300B & it is expected to grow at a CAGR of 9-12% from 2025 to 2030
GDP Contribution - 14%
Segments
1. Transportation: 60% of the market share
2. Warehousing: 20% of the market share
3. Freight Forwarding: 10% of the market share
4. Value-added Services: 5% of the market share
5. E-commerce Logistics: 5% of the market share
Key Players:
1. DHL
2. FedEx
3. Blue Dart
4. Gati
5. Safexpress
6. Mahindra Logistics
7. Allcargo Logistics
Growth Drivers
1. E-commerce growth
2. Government initiatives (Gati Shakti, Bharatmala, etc.)
3. Infrastructure development (roads, ports, airports, etc.)
4. Increasing demand for cold chain logistics
5. Growing need for efficient supply chain management
6. Dedicated Freight Corridor
Overall the growth trajectory looks good for the next 3-5 years
Study it at young stage
Balu Forge Industries Ltd
Key highlights from Investor/Analyst Meet (Dec 2, 2024):
Capacity expansion updates, workforce growth, cash flow improvements, and strong progress in Railways, Defence, and Aerospace segments.
Credit Saksham via X
Signature Global mngmt Says On Track To Meet FY25 Guidance
Have Done ₹5,800 Cr Of Sales In H1
Collections At ₹2,100 Cr In H1, Guidance For The Year Is 76,000 Cr
Have Done ₹9,000 Cr Of Launches Vs 16,000 Cr Planned For FY25 In H1
We Own Good Amount Of Land, So Sustained Supply Of Projects is Possible
HDFC BANK MNGMT SAYS
Expect Robust Growth In Credit Cards For HDFC Bank
Slowdown Has Happened in Unsecured Segment For The Banks
Outlook On Growth Remains Robust
SHEELA FOAM MNGMT SAYS Demand Is Good, Wedding Season Has Seen Good Traction So Far
FY25 Revenue Growth Would Be Close To 10%
H2 Should See 13-15% Growth
Will Get To ₹1,000 Cr Annual Run-Rate For Kurlon By Q4
Market Share Of Consolidated Entity In The Organised Space At 30%
Margin For Kurlon Targetted At 12-13%
Stocks to Buy for an Upside Potential of upto 58%
1⃣ Timken India
Target Price: ₹4080
Upside Potential: 23%
Recommended by: ICICI Direct
2⃣ L&T Finance
Target Price: ₹200
Upside Potential: 42%
Recommended by: ICICI Securities
3⃣ Ambuja Cements
Target Price: ₹710
Upside Potential: 44%
Recommended by: Motilal Oswal Financial Services
4⃣ Astral
Target Price: ₹2666
Upside Potential: 49%
Recommended by: Anand Rathi
ENVIRO MNGMT SAYS Topline Growth Expected At 30-35%
Have Orders From 8 States, Increasing Footprints In Other States
Orderbook Is At ₹1,906 Cr As Of June 30
For Last 3 Years Topline Has Grown By 80%, PAT CAGR Growth At 132%
Few Projects Have Been Tendered By The Govt This Yr, Due To Elections
Few Projects Have Been Tendered By The Govt This Yr, Due To Elections
See Projects Coming Up In The Jal Jeevan Mission & Waste Water Segment
Have A Visibility Of 2 Years From Current Orderbook
Received A Project Of ₹267 Cr In July
EBITDA Margin Seen In The Range Of 24-25%
UNION Bank Mngmt Says Gross NPA Ratio Will Be At Same Level In FY25 As H1FY25
Deposit Growth Has Been Behind Loan Growth
Not Seeing Broad-based Deterioration In Asset Qualit
Expect Credit Growth Of 10-11% For FY25
Gross NPA Will Be Contained Around Present Levels Of 4.3-4.4% Level By End Of FY25
Rate Cuts Have Been Postponed, Liquidity Continues To Remain Tight
Slippages Rose In Q2 Due To Stress In A Large Corporate Account
Transmission
Renewables
SemiConductor
Textiles
CDMO
Defence
Data Centre
Above Theme looks atttractive in coming times
Margin Guidance:
Current EBITDA margins around 25%, expected to compress initially due to fixed costs associated with the new facility.
Long-term target margins of 22-25% even with lower-margin orders during ramp-up phase.
Innovation and R&D:
Strong focus on innovation with in-house expertise, including collaborations with top technocrats.
Continuous testing and development of products to meet international standards and certifications.
Strategic Partnerships:
In advanced discussions with Siemens Energy for export opportunities in the European market.
Exploring collaboration with IIT Delhi for noise barricading solutions aimed at hotels and multi-story buildings.
Capacity Expansion:
Current manufacturing facilities are fully occupied; expanding capacity from 2,000 square meters to 10,000 square meters.
New facility expected to come online within 2-3 months, aiming for a potential revenue increase of 5x over the next three years.
Anticipation of reaching full capacity utilization by FY '26, targeting ₹180-200 crores in revenue at full capacity
