The Indian benchmark indices, NIFTY and SENSEX, experienced an upward trend on 28th January as the bank stocks surged after the RBI announcement. The major bank stocks, including HDFC Bank, IDFC First Bank, IndusInd Bank, and ICICI Bank shares, rose by around 2-3%, and the Bank NIFTY reached an intraday high of Rs.49,247.15.
What RBI measures caused this surge, and what does it mean for the investors? Let’s understand.
The RBI Announcement
The Reserve Bank of India plans to inject Rs.1.5 lakh crore worth of liquidity into the economy and banking system. This announcement follows a Rs.3.1 lakh crore deficit recognized in the banking system. The infusion of liquidity will be done through the following measures-
Government Securities (G-Secs) Purchases:
The RBI will buy Rs.60,000 crore worth of G-Secs in three tranches (Rs.20,000 crore each) through Open Market Operations (OMOs), which will take place on 30th January, 13th February, and 20th February.
Variable Rate Repo (VRR) Auction:
A Rs.50,000 crore VRR auction is set for 7 February to inject liquidity for 56 days.
Dollar-Rupee Sell Swap Auction:
A $5 billion swap auction on 31st January will provide liquidity by exchanging dollars for rupees.
The RBI’s steps are expected to stabilize the liquidity situation, providing banks with a durable source of funds. This is critical as the RBI has been intervening in the forex market to manage rupee volatility. These actions could also signal a potential interest rate cut, as boosting liquidity is crucial for effective policy transmission. The next RBI meeting in early February will likely reveal the future course of action.
Open Market Operations (OMO) is a tool used by the RBI to manage liquidity in the banking system by buying or selling government securities (G-secs). In this process, the government, via the central bank, purchases G-secs in the open market to inject money into the economy. This action increases the money supply, lowering interest rates and stimulating economic growth.
When the RBI buys G-secs, it pumps more money into circulation, encouraging borrowing and spending by businesses and individuals. The ultimate goal is to boost economic activity, especially when growth is needed or inflation is under control. On the other hand, selling G-secs would pull money out of the system, helping to curb inflation if necessary.
Variable Rate Repo (VRR) Auction
The Variable Rate Repo (VRR) auction is a short-term liquidity adjustment tool the RBI uses to manage the banking system’s liquidity. In this auction, banks borrow funds from the RBI at a variable interest rate, which is determined through bidding. The RBI sets the amount to be auctioned based on current liquidity conditions and announces these details in advance.
VRR auctions are typically conducted when the weighted average call money rate (which reflects short-term borrowing costs) exceeds the repo rate, signaling a liquidity crunch. By allowing banks to borrow funds at a rate set through the auction, the RBI helps ease liquidity concerns, stabilizing interest rates and aligning them with its monetary policy objectives.
VRR auctions generally last from overnight to 13 days, with longer tenures being rare. This tool helps balance market conditions and ensures the banking system remains liquid.
Dollar-Rupee Sell Swap Auction
The Dollar-Rupee Sell Swap Auction is a method the RBI uses to manage the rupee’s exchange rate. In this auction, the RBI sells US dollars to banks in exchange for rupees and agrees to repurchase them later. This reduces rupee liquidity in the system, helping to support the rupee against depreciation. By conducting these swaps, the RBI stabilizes the foreign exchange market and controls excessive fluctuations in the rupee’s value, especially during global volatility or rising crude oil prices.
What Does It All Mean for Investors?
The RBI’s liquidity boost is a positive sign for investors, especially for bank stocks like HDFC, ICICI, and Axis Bank. With measures like government securities purchases, VRR auctions, and Dollar-Rupee swaps, the RBI ensures banks have ample liquidity to operate smoothly. This stability can improve banks’ profitability, which could boost their stock prices.
Additionally, these steps might signal an interest rate cut, which would reduce borrowing costs and potentially spur economic activity. For investors, lower rates make equities more attractive compared to fixed-income options.
Overall, the RBI’s actions provide stability and confidence, particularly for the banking sector, and suggest a more favorable environment for growth in the near term. As always, it’s essential to stay updated on how these measures impact the market and take your investment decisions accordingly.
Disclaimer Note: The securities quoted, if any, are for illustration only and are not recommendatory. This article is for education purposes only and shall not be considered as a recommendation or investment advice by Equentis – Research & Ranking. We will not be liable for any losses that may occur. Investments in the securities market are subject to market risks. Read all the related documents carefully before investing. Registration granted by SEBI, membership of BASL & certification from NISM in no way guarantee the performance of the intermediary or provide any assurance of returns to investors.
FAQs
What is OMO?
OMO (Open Market Operations) is a tool central banks, like the RBI, use to manage liquidity in the economy. It involves buying or selling government securities (G-secs) in the open market.
What is meant by Repo Rate?
The repo rate is the interest rate at which commercial banks borrow funds from the central bank, using government securities as collateral. The current repo rate is 6.5%.
Is liquidity management related to managing inflation? How?
Yes, liquidity is closely related to managing inflation. When there’s excess liquidity (too much money in circulation), demand can surpass supply, leading to higher prices and inflation. Central banks reduce liquidity by raising interest rates or selling government securities to control inflation, discouraging borrowing and spending. Conversely, increasing liquidity can stimulate demand and economic activity during deflation or low inflation.
Central Depository Services Limited (CDSL) shares saw a sharp drop of nearly 12% after announcing their third-quarter (Q3) results for the fiscal year. The stock hit a three-month low of ₹1,242.50 on January 28, driven by lower-than-expected Q3 earnings.
CDSL reported a 21.5% rise in consolidated profit after tax, reaching ₹130 crore. Although its year-on-year income demonstrated notable growth, the quarter-on-quarter performance declined.
The company’s weaker performance fell short of market expectations, triggering a sell-off as investors expressed disappointment. Let’s explore the reasons behind this significant dip and what this means for the investors and the broader market.
CDSL’s Q3 Performance
CDSL, one of India’s leading securities depositories, reported lackluster financial results for the quarter ending December 2024. The company’s net profit and revenue growth failed to meet analysts’ estimates, which dampened market sentiment. Here are some of the key highlights of the results:
Strong Year-on-Year Growth, but Quarter-on-Quarter Decline for CDSL
CDSL reported a total income of ₹298 crore for Q3 FY25, reflecting a substantial year-on-year (YoY) increase of 26.3% compared to ₹236 crore in the same period last year.
On a standalone basis, the net profit for Q3 FY25 was ₹105 crore, reflecting a year-on-year (YoY) growth of 22.09%. However, it recorded a quarter-on-quarter (QoQ) decline, falling to ₹278 crore for the quarter ending December 2024, compared to ₹322 crore in the September 2024 quarter. Source: Economic Times/Screener
The profit also declined to ₹130 crore in the December 2024 quarter, compared to ₹162 crore in the September quarter, reflecting a 20% decrease. Source: Moneycontrol
Additionally, the number of net new demat accounts opened during the quarter was the lowest since Q4 FY24. New account openings in Q3 stood at 92 lakh, a decline from the 1.18 crore accounts added in September. Source: Moneycontrol
Market experts attributed the sell-off to several factors:
Earnings Miss:
The failure to meet earnings expectations was the primary driver behind the negative sentiment.
High Valuations:
CDSL’s stock was trading at relatively high valuations before the results, which magnified the impact of the earnings disappointment.
Sectoral Weakness:
Broader concerns about the depository sector, including regulatory changes and market activity levels, added to the pressure on the stock.
CDSL: A Pillar of India’s Market Infrastructure
CDSL plays a vital role as an Indian Market Infrastructure Institution (MII), enabling electronic holding and securities transactions while facilitating trade settlements. It serves many capital market participants, including depository participants, issuers, investors, RTAs, clearing corporations, and exchanges.
As India’s leading depository services provider, CDSL is globally recognized as the only listed depository in Asia, managing over 14.65 crore accounts.
CDSL Share Price Performance
In the past year, CDSL’s shares have risen by 54.85%. Over the last six months, the stock gained 12.03%, but it faced a minor decline of 3.41% in the past three months. However, CDSL’s returns dropped sharply by 24.14% in the last month.
What Analysts Say?
Analysts have offered mixed reactions to CDSL’s Q3 performance. While some believe the earnings miss is a temporary blip, others are more cautious about the company’s outlook. Here’s what they’re saying:
Near-Term Challenges: Brokerages highlight that slow revenue growth and margin pressures may continue in the short term due to macroeconomic challenges and regulatory uncertainties.
Long-Term Potential: Analysts are optimistic about CDSL’s future, which is driven by the growing use of demat accounts and a rising retail investor base in India.
Target Price Revisions: After the Q3 results, several analysts lowered their target prices for CDSL’s stock. One prominent firm, for example, reduced its target from ₹700 to ₹600, indicating a more cautious approach.
Investor Concerns and Sentiment
The steep drop in CDSL’s stock price has raised concerns among investors, particularly retail shareholders. Many question whether the current dip presents a buying opportunity or if the stock will face further downside.
Short-Term Uncertainty: The stock’s poor performance and lack of immediate growth triggers may discourage short-term investors.
Long-Term Growth: Long-term investors might see this dip as a chance to buy at lower prices, supported by strong growth prospects in India’s capital markets.
What Lies Ahead?
CDSL’s ability to navigate the current challenges will determine its trajectory. Key focus areas for the company include:
Enhancing Operational Efficiency: Streamlining operations and controlling costs will improve profitability.
Expanding Revenue Streams: Diversifying into new areas, such as value-added services, can help mitigate the impact of fluctuations in core revenue streams.
Leveraging Market Growth: As India’s capital markets continue to grow, CDSL can capitalize on the increasing investor participation and expanding financial instruments.
Conclusion
CDSL’s Q3 performance has undoubtedly disappointed the market, resulting in a sharp correction in its stock price. While the short-term outlook appears challenging, the company’s strong market position and long-term growth drivers offer hope for a recovery. For investors, the key will be to weigh the near-term risks against the long-term potential before making any decisions.
As always, staying informed and monitoring the company’s performance in subsequent quarters will be essential for making well-informed investment choices.
Disclaimer Note: The securities quoted, if any, are for illustration only and are not recommendatory. This article is for education purposes only and shall not be considered as a recommendation or investment advice by Equentis – Research & Ranking. We will not be liable for any losses that may occur. Investments in the securities market are subject to market risks. Read all the related documents carefully before investing. Registration granted by SEBI, membership of BASL & certification from NISM in no way guarantee the performance of the intermediary or provide any assurance of returns to investors.
DeepSeek, an AI app, made the world tumble in a single day. Tech-giant Nvidia lost $600 billion in market value in the biggest wipe-out in history, while the company CEOs lost over $20.1bn.
This Chinese startup has challenged industry norms, causing one of the sharpest financial market corrections a $589 billion valuation wipeout in a single day in recent history since the pandemic.
DeepSeek’s new AI model, developed with unprecedented efficiency and cost-effectiveness, has raised eyebrows and rattled the dominance of tech stalwarts like Nvidia, Microsoft, and Alphabet.
This blog unpacks how DeepSeek’s meteoric rise disrupted the tech ecosystem, how it hit Wall Street, and the future of AI innovation.
The Rise of DeepSeek
Founded just two years ago, DeepSeek has already managed to leapfrog industry giants with its latest large-language model (LLM). Dubbed the R1, this model boasts advanced processing capabilities at a fraction of the cost compared to its Western competitors. The release of its V3 model, containing 671 billion parameters, was completed in just 55 days for $5.58 million—a stark contrast to the billions spent by major players like OpenAI (CBS News).
Within hours of its debut, DeepSeek’s AI assistant became the most downloaded app on Apple’s App Store in the U.S., surpassing market leaders such as ChatGPT. Social media platforms lit up with amazement over the AI’s ability to answer complex queries, solve logic puzzles, and even generate code.
This widespread adoption saw servers crash due to overwhelming demand, leading the company to restrict registrations to China (Livemint).
The Numbers That Shocked Wall Street
DeepSeek’s breakthrough triggered a sharp selloff in tech stocks, sparking what many analysts have dubbed “AI Reckoning Day.” Nvidia, the pioneer of AI chips, suffered the most significant blow, with its shares plummeting 17% in a single day, erasing $593 billion from its valuation. CEO Jensen Huang personally lost $21 billion of his net worth (Financial Express).
The ripple effect spread globally. The Nasdaq Composite Index fell 4.7% in its steepest decline of 2025, wiping billions more in market capitalization from tech-heavyweights. The Nasdaq 100 closed with a decline of 3%, wiping out a year’s worth of gains and resulting in losses of up to $1 trillion in just one day. Companies in the energy sector, which anticipated benefiting from the surge in AI demand, saw their stock values drop.
Asian markets were equally impacted: Japan’s Nikkei 225 slid 2.3%, with Tokyo-based semiconductor suppliers like Advantest and Tokyo Electron experiencing steep declines of 10% and 5.3%, respectively (WSJ).
Tech Stocks Suffer
The Nasdaq index saw significant declines, with Broadcom Inc., a leading chipmaker, dropping 17.4%. Microsoft, which supports ChatGPT, followed with a decrease of 2.1%, and Google’s parent company, Alphabet, fell by 4.2%. Additionally, the Philadelphia Semiconductor Index (SOX), a key indicator for the tech industry, dropped almost 6%, highlighting a general concern about the prospects for established companies in the AI arena (Financial Express).
This investor exodus reflects growing doubts about whether the potential returns justify the significant investments in AI.
Social Media Uproar
The chaos spilled over to social media, where platforms like X (formerly Twitter) and Reddit were flooded with discussions about DeepSeek’s implications. Posts with captions like “DeepSeek has just rewritten the rules of AI development” and “Nvidia’s empire is shaking—are we witnessing the rise of a new tech superpower?” went viral.
A particularly noteworthy post on X read:
“In one day, a tiny Chinese startup managed to upend everything we thought we knew about AI. The tech world will never be the same again.”
Meanwhile, LinkedIn became the hub for industry professionals debating how DeepSeek’s innovations could democratize AI and whether the U.S. government would step in to regulate Chinese AI exports (Livemint).
Challenges: Limiting Growth or Strategic Play?
Despite its monumental success, DeepSeek has not been without its challenges. The company restricted registrations after an alleged cyberattack and has been accused of censoring politically sensitive content on its platform.
While this has raised questions about its commitment to transparency, DeepSeek has largely justified these measures as necessary to maintain operational stability (CBS News).
Critics argue that these restrictions might limit DeepSeek’s ability to compete in Western markets. Still, others believe this is a calculated strategy to solidify its dominance within China before taking on global competitors.
A Turning Point for AI and Wall Street
The emergence of DeepSeek has changed the game’s rules, proving that innovation is not confined to Silicon Valley. DeepSeek has shown the world that smaller players can disrupt even the most established tech empires by creating a cost-efficient, high-performance AI model.
For Wall Street, this is a stark reminder that the rapid pace of innovation can overturn the most bullish assumptions. For now, all eyes are on DeepSeek and its potential to reshape the AI landscape—not just in China but worldwide.
Disclaimer Note: The securities quoted, if any, are for illustration only and are not recommendatory. This article is for education purposes only and shall not be considered as a recommendation or investment advice by Equentis – Research & Ranking. We will not be liable for any losses that may occur. Investments in the securities market are subject to market risks. Read all the related documents carefully before investing. Registration granted by SEBI, membership of BASL & certification from NISM in no way guarantee the performance of the intermediary or provide any assurance of returns to investors.
Eco Recycling Limited, a leader in the waste management sector, has announced a new chapter in its growth story. On January 23, the company revealed plans to raise funds through a Qualified Institutional Placement (QIP). This strategic move aims to bolster its operational capacity and unlock new opportunities in the rapidly evolving sustainability landscape.
The announcement follows a spectacular five-year journey, during which the stock delivered an astounding 2000% return to investors.
A Qualified Institutional Placement (QIP) is a capital-raising method tailored for publicly traded companies. It enables these companies to issue equity shares or securities to Qualified Institutional Buyers (QIBs), such as mutual funds, insurance companies, and other large institutional investors. Governed by the Securities and Exchange Board of India (SEBI), this mechanism ensures transparency and compliance while providing companies with an efficient way to raise funds without significantly diluting control.
Eco Recycling Limited’s filing detailed its intent to issue equity shares valued at ₹10 each (Source: Livemint). The company’s board approved the proposal and enlisted GYR Capital Advisors Pvt Ltd as the lead manager for the issue. Vidhigya Associates will serve as legal counsel to oversee compliance with SEBI regulations and the Companies Act 2013.
Stock Performance: A Star Performer
Eco Recycling Limited has been a beacon of success for investors, offering phenomenal returns over the years:
Five-Year Returns: Rs.34, providing a return of 2256% (Source: Screener.in).
One-Year Returns: Rs.387, providing a return of 104% (Source: Screener.in).
However, the stock’s year-to-date (YTD) performance shows a decline of 16.81%, indicating some recent market corrections. As of January 26, 2025, the stock closed at ₹807.40, down 2.78% from the previous session. It reached its 52-week high of ₹1,215.10 on August 29, 2024, and its 52-week low of ₹378 on January 25, 2024. The company’s current market capitalization stands at ₹1,558.02 crore (Source: Livemint).
The Secret Behind Eco Recycling’s Success
Eco Recycling Limited has positioned itself as a trailblazer in the waste management industry, leveraging innovative recycling techniques and sustainable practices. With the growing global emphasis on environmental conservation and the circular economy, the company has tapped into a market ripe for expansion. This combination of vision and execution has fueled its multibagger status, attracting investors seeking long-term growth.
Growth Through QIP
The QIP fundraising initiative signals Eco Recycling’s plan to scale new heights. The capital infusion may support technological advancements, operational expansion, and market penetration. Given the company’s track record, this move could lay the groundwork for continued growth in an increasingly critical industry of global sustainability efforts.
While recent market corrections may give some investors pause, the company’s strong fundamentals and growth-oriented strategy try to position it as a compelling opportunity for those with a long-term perspective.
Key Takeaways
Eco Recycling Limited’s journey from an under-the-radar stock to a market leader underscores the importance of innovation, adaptability, and strategic planning. The announcement of a QIP is not just a financial maneuver but a step toward strengthening its position in the sustainability sector.
The company remains a promising prospect for investors. However, as with any investment, a thorough analysis of its performance and plans is essential to align with individual financial goals and risk tolerance.
Disclaimer Note: The securities quoted, if any, are for illustration only and are not recommendatory. This article is for education purposes only and shall not be considered as a recommendation or investment advice by Equentis – Research & Ranking. We will not be liable for any losses that may occur. Investments in the securities market are subject to market risks. Read all the related documents carefully before investing. Registration granted by SEBI, membership of BASL & certification from NISM in no way guarantee the performance of the intermediary or provide any assurance of returns to investors.
FAQs
What is a Qualified Institutional Placement (QIP)?
QIP is a method for publicly listed companies to raise capital by issuing shares or securities to Qualified Institutional Buyers (QIBs), such as mutual funds and insurance companies. It is regulated by SEBI to ensure compliance and transparency.
Why is Eco Recycling Limited opting for a QIP?
The company plans to use the funds raised through QIP to support technological advancements, expand operations, and strengthen its market position in the sustainability sector.
How has Eco Recycling Limited performed in recent years?
Eco Recycling has delivered remarkable returns, with a 2000% increase over five years and a 104% rise in the last year. However, its stock is currently down 16.81% year-to-date.
Is Eco Recycling Limited a good investment?
The company’s strong fundamentals and growth prospects make it an attractive option for long-term investors. However, conducting thorough research and considering individual risk tolerance before investing is essential.
Who is managing the QIP process for Eco Recycling Limited?
The company has appointed GYR Capital Advisors Pvt Ltd as the lead manager and Vidhigya Associates as legal counsel for the QIP issue.
Dalal Street is set for a busy week as two new initial public offerings (IPOs) debut and six scheduled stock listings. Despite bearish sentiment and volatility in the secondary market, the primary market remains active. Investors will have the chance to explore two new IPOs for subscription, one from the mainboard and the other from the SME segment, starting January 27. Source: Moneycontrol
Adding to the buzz, the Denta Water IPO allotment is happening today. This IPO is entirely a fresh issue of 0.75 crore shares. Founded in 2016, Denta Water and Infra Solutions Ltd has established itself as a key player in water Engineering, Procurement, and Construction (EPC) services. Source: ET Now
Let’s dive into the details to understand what’s in store for investors.
IPO Details of Dr. Agarwal’s Health Care Ltd.
Dr. Agarwal’s Healthcare IPO is a book-built issue valued at ₹3,027.26 crores. It comprises a fresh issue of 0.75 crore shares worth ₹300 crores and an offer for sale of 6.78 crore shares totaling ₹2,727.26 crores.
Dr. Agarwal’s Health Care Ltd. is a leading eye care provider in India, offering a comprehensive range of services, including eye examinations, laser vision correction (LASIK, SMILE), cataract surgery, glaucoma treatment, and more. With a vast network of clinics nationwide, they prioritize patient care and utilize advanced technology and experienced ophthalmologists to deliver high-quality eye care solutions.
Swot Analysis of Dr. Agarwal’s Health Care Ltd IPO
STRENGTHS
WEAKNESSES
Strong Brand Reputation: Dr. Agarwal’s is a well-established and trusted name in the Indian eye care market.
Large Network: Extensive clinics across India, ensuring wide reach and accessibility.
Experienced Team: A team of highly skilled and experienced ophthalmologists.
Growing Market: The Indian eye care market is projected to grow significantly in the coming years.
Competition: Intense competition from other established players and new entrants.
Price Sensitivity: Price sensitivity among a significant portion of the Indian population.
Reliance on a Few Procedures: Revenue concentration in key procedures like cataract surgery.
Geographic Concentration: Revenue concentration in certain regions.
OPPORTUNITIES
THREATS
Expansion into Tier II and Tier III Cities: Further expansion into untapped markets.
Diversification of Services: Expanding service offerings to include new specialties like oculoplastics and neuro-ophthalmology.
Telemedicine and Digital Health: Leveraging technology for remote consultations and patient care.
International Expansion: Exploring opportunities for global expansion.
Government Regulations: Shifts in healthcare-related government policies and regulations.
Technological Disruptions: Introduction of new technologies and treatment alternatives.
Changes in Consumer Behavior: Evolving consumer preferences and expectations in healthcare.
IPO Details of Malpani Fitting & Pipes
The price band for Malpani Pipes IPO is between ₹85 and ₹90 per share, with a minimum application size of 1,600 shares. Retail investors need to invest at least ₹1,44,000, while the minimum investment for HNIs is two lots (3,200 shares), amounting to ₹2,88,000.
Malpani Pipes & Fittings Ltd. is an Indian manufacturer of high-quality plastic pipes and fittings. Based in Madhya Pradesh, it specializes in many products, including HDPE pipes, MDPE pipes, sprinkler pipes, drip irrigation pipes, and more. The company is known for its commitment to quality and customer satisfaction and adheres to ISO 9001:2015 standards.
SWOT Analysis of Malpani Fitting & Pipes IPO
STRENGTHS
WEAKNESSES
Experienced Management: The company has a seasoned management team with a proven track record in the plastic pipes and fittings industry.
Strong Market Presence: Malpani Pipes has a well-established presence in the Indian market, particularly in the northern region.
Diverse Product Portfolio: Offers products catering to various applications, including agriculture, irrigation, and infrastructure.
Focus on Quality: Adherence to ISO 9001:2015 quality standards ensures consistent product quality.
Geographic Concentration: Revenue concentration in a specific region (Northern India) may limit growth potential.
Dependence on a Single Manufacturing Facility: Reliance on a single manufacturing facility could disrupt operations in case of unforeseen events.
Competition: The plastic pipes and fittings industry is highly competitive with numerous established players.
Raw Material Price Fluctuations: Fluctuations in raw material prices can impact profitability.
OPPORTUNITIES
THREATS
Expand Geographic Reach: Increase market penetration in other regions of India.
Diversify Product Portfolio: Explore new product lines and applications to broaden revenue streams.
Increase Market Share: Gain market share through strategic partnerships and aggressive marketing.
Leverage Government Initiatives: Benefit from government infrastructure development and water management initiatives.
Changes in Government Regulations: Changes in government regulations related to the industry could impact operations.
Entry of New Competitors: Entry of new players could intensify competition and erode market share.
Environmental Concerns: Growing environmental concerns could lead to stricter regulations and increased costs.
In addition, the Denta Water IPO allotment is taking place today. The IPO is set to be listed on Dalal Street, tentatively on Wednesday, January 29, 2025.
Denta Water IPO shares are trading at a premium of approximately 40% over the upper price band (Rs 294 per share) in the grey market, an unofficial platform for IPO shares trading before the official listing, according to market observers. Source: ET Now
From the drop-down menu, choose “Denta Water” as the company name.
Enter Your Details
You can check your allotment status by entering your PAN number, IPO Application number, or DP client ID/Demat account number.
View Allotment Status
Tap the ‘Search’ button, and the screen will display the status of your IPO allocation, showing both the shares you applied for and those allocated to you.
Check IPO Allotment Status on BSE
Alternatively, you can also check your allotment status on the BSE website:
Select the company name for the Denta Water IPO from the drop-down menu.
Enter Your Details
To view your allocation status, enter your application number or PAN number.
IPOs Closing Next Week
CLN Energy’s Rs 72-crore IPO will close on January 27, while the bidding for GB Logistics Commerce and HM Electro Mech public offerings will end on January 28. CLN Energy’s IPO was subscribed 2.68 times in the past two days, while GB Logistics Commerce and HM Electro Mech IPOs were fully subscribed on their first day of bidding, January 24, at 5.44 times and 7.32 times, respectively. Source: Moneycontrol
Six Listings Scheduled for Next Week
In addition to the IPOs, six companies are set to debut on Dalal Street. These include a mix of small and mid-sized firms across various sectors. Each listing brings unique value propositions, offering investors diverse opportunities.
SME Segment Debuts
The remaining five companies, all from the SME segment, will also list this week. Capital Numbers Infotech will debut on the BSE SME platform on January 27, while Rexpro Enterprises shares will begin trading on the NSE Emerge platform on January 29. Source: Moneycontrol
Upcoming SME Listings
Investors will also be able to start trading CLN Energy shares on the BSE SME on January 30, followed by GB Logistics Commerce and HM Electro-Mech, whose shares will be available for trading on January 31.
Dalal Street is set for significant market activity with two IPOs and six upcoming listings featuring prominent mainboard and SME players. The week will see heightened activity and increased investor interest as the market readies itself for these listings.
Disclaimer Note: The securities quoted, if any, are for illustration only and are not recommendatory. This article is for education purposes only and shall not be considered as a recommendation or investment advice by Equentis – Research & Ranking. We will not be liable for any losses that may occur. Investments in the securities market are subject to market risks. Read all the related documents carefully before investing. Registration granted by SEBI, membership of BASL & certification from NISM in no way guarantee the performance of the intermediary or provide any assurance of returns to investors.
India’s live entertainment scene is really coming alive right now! It’s exciting to see the country becoming a hotspot for global performances. This shift is largely thanks to our vibrant, young population, who have more spending money and a growing love for a variety of cultural experiences. It’s an amazing time to be part of this lively transformation!Coldplay’s
Record-Breaking Concert
A defining moment in India’s live entertainment scene was Coldplay’s recent concert at Ahmedabad’s Narendra Modi Stadium. The event attracted an unprecedented crowd, marking it as the band’s largest performance.
Lead vocalist Chris Martin endeared himself to fans by addressing the audience in Gujarati, saying, “Tame logo aaje bada sundar laago cho. Hu tamare shahar ma aavyo chu. Kem cho, Ahmedabad?” (“You all look beautiful today. I’ve come to your city. How are you, Ahmedabad?”).
The band’s official X (formerly Twitter) account celebrated the event: “Our biggest ever concert. Totally mind-blowing. Thank you, Ahmedabad. See you again tomorrow.”
Social Media Buzz
The concert garnered significant attention on social media platforms. Anand Mahindra, Chairman of the Mahindra Group, shared a breathtaking aerial video of the packed stadium, captioning it, “The moment when the world discovered that India is the new frontier of live entertainment. Coldplay. Ahmedabad.”
This post resonated with many, highlighting India’s rising prominence in the global entertainment arena.
A Flourishing Market
The live events sector in India has witnessed remarkable growth. In 2023, the market was valued at approximately 88 billion Indian rupees and is projected to reach 143 billion rupees by 2026, reflecting a compound annual growth rate of 17.6%.
Source: Statista*Value of the live events market across India from 2016 to 2023, with estimates until 2026
This upward trajectory underscores the nation’s expanding enthusiasm for live performances.
Anil Makhija, BookMyShow’s chief operating officer for live entertainment and venues, said, “India is the second largest audio streaming market for most global artists, which effectively translates into heightened demand on the ground for music concerts.”
Global Artists Flocking to India
Recognizing India’s potential, international music icons increasingly include the country in their tour itineraries. Recent performances by artists such as Dua Lipa and Maroon 5 in Mumbai have set the stage for upcoming Coldplay, Ed Sheeran, Shawn Mendes, and Green Day concerts. This influx is a testament to India’s growing significance on the global entertainment map.
According to Reuters, the number of live events in India is up 35% Y-o-Y. More affluent and globally connected Indians are buying tickets beyond metro cities, and analysts believe India will soon rival Australia, China, Canada, and the UK for live tours.
BookMyShow data suggests the growth of concerts has helped elevate other forms of live entertainment. There were 27,000 live events, from music to comedy shows and theatre, in India in 2024, 35% more than in the same period last year. Economists believe the growing interest in live entertainment will spill over the economy as people spend on transport, hotels, food, and merchandise.
Analysts estimate concert-linked spending could total between 60 billion rupees ($708.5 million) and 80 billion rupees on an annualized basis in 2025
Challenges and Opportunities
Despite the enthusiasm, the surge in demand for live events has presented challenges. For instance, during Coldplay’s ticket sales, approximately 13 million fans vied for 150,000 tickets, leading to platform crashes and ticket scalping issues.
This scenario underscores the need for better infrastructure and regulatory measures to ensure fair access and enhance the overall concert-going experience. Le Monde.fr
Beyond Major Cities
The appetite for live entertainment is not confined to metropolitan hubs. Cities like Ahmedabad and Shillong are emerging as new destinations for major events, reflecting a broader national trend. This decentralization indicates a promising future for live entertainment across India, offering regional growth and cultural exchange opportunities. Reuters
The Road Ahead
As India’s live entertainment sector evolves, collaboration between event organizers, government bodies, and international artists will be crucial. By addressing challenges related to infrastructure, ticketing, and accessibility, India can solidify its position as a premier destination for live performances, offering unforgettable experiences to audiences nationwide.
In conclusion, it’s exciting to see India emerging as a vibrant hub for live entertainment! This growth reflects the country’s lively cultural scene and the changing tastes of its people.
With smart investments and careful planning, India may soon welcome a host of world-class events that will enhance its cultural richness and bring joy to audiences for many years to come.
Disclaimer Note: The securities quoted, if any, are for illustration only and are not recommendatory. This article is for education purposes only and shall not be considered as a recommendation or investment advice by Equentis – Research & Ranking. We will not be liable for any losses that may occur. Investments in the securities market are subject to market risks. Read all the related documents carefully before investing. Registration granted by SEBI, membership of BASL & certification from NISM in no way guarantee the performance of the intermediary or provide any assurance of returns to investors.
Remember learning to ride a bicycle? Those first shaky attempts were scary, but the steady hand behind you, saying, “I’m here,” made all the difference. That promise of support gave you the courage to keep going.
Imagine having that kind of reassurance throughout life. For millions of Indians, one name has been that steady hand, offering trust, care, and security for over 65 years. With its motto, “Yogakshemam Vahamyaham” (“Your welfare is our responsibility”), it has become a symbol of unwavering support.
Curious how this journey of trust began? Read on
Of Indian Insurance
In the early 19th century, life insurance in India carried a strong bias. When it arrived in 1818, it catered exclusively to European lives. Indian lives were considered “sub-standard,” burdened with exorbitant premiums, and often denied fair coverage.
Change, however, began to take root in 1870 with the Bombay Mutual Life Assurance Society, which dared to offer Indians policies at par with their European counterparts.
Movement Igniting The Spark
The Swadeshi movement of the early 1900s, championing self-reliance, ignited a surge of Indian-owned insurance companies like Bharat Insurance, Hindustan Co-operative Insurance, and Swadeshi Life.
By the mid-20th century, the sector was bustling but fragmented, with over 200 companies and continuous financial instability.
In response, the Indian government passed the Life Insurance Corporation of India Act in 1956, nationalizing the industry. This move unified 245 entities under one banner, and the Life Insurance Corporation of India (LIC) was born on September 1, 1956.
With ₹5 crore from the government and the motto “Yogakshemam Vahamyaham” (“Your welfare is my responsibility”), it quickly became a leader in driving a national transformation.
A Nation, One Policy At A Time
A dual mission marked LIC’s early years: providing financial security and nation-building. Its investments fueled public sector projects—from constructing steel plants and power stations to establishing IITs and housing initiatives.
During the 1965 Kashmir conflict, it injected ₹5 crore into the stock market to stabilize the economy.
By the 1970s, life insurance corporation wasn’t just insuring lives but strengthening India’s dreams.
Adding The Human Touch
The 1980s brought unique challenges. In a sluggish economy, insurance seemed a luxury, yet it persevered.
Field agents became the lifeblood of its operations, traveling to the remotest corners—by bullock carts, trains, or on foot—to spread the message that insurance was both a safety net and an investment.
With campaigns like “Zindagi ke saath bhi, Zindagi ke baad bhi,” the corporation reshaped how Indians viewed insurance, focusing on security for families.
Amid Competition
From 1956 to 2000, the corporation operated as the only life insurance company in the country, ensuring that it became deeply embedded in the lives of millions of Indians.
The liberalization of the insurance sector in the 2000s saw a surge in private players. But it was prepared.
Between 2000 and 2006, it added over 5 lakh agents and diversified its offerings, catering to rural laborers and affluent professionals.
By 2007, despite fierce competition, the corporation commanded 72% of new policy sales.
That Focused on Real People
The life insurance corp’s marketing strategies remained grounded. From personal selling and rural awareness campaigns to sponsoring national events, its focus on connection over flashy advertising ensured enduring trust.
By 2021, 12.08 lakh agents constituted 55% of all individual agents in India, a testament to the corporation’s unparalleled reach.
A Financial Powerhouse
The company’s growth trajectory has been staggering. From generating new business worth ₹200 crore in 1957, it crossed ₹1,000 crore in 1969-70.
By 1985-86, reorganization efforts pushed it past ₹7,000 crore in sum assured on new policies.
Fast forward to 2022, its IPO raised a historic ₹21,008 crore, reinforcing its financial might.
Today, with assets exceeding ₹40 lakh crore, LIC is one of the world’s largest financial institutions.
Diverse Offerings
LIC’s portfolio spans a wide array of policies tailored to different needs. Its endowment plans include Jeevan Pragati, Jeevan Labh, LIC Single Premium Endowment Plan, New Jeevan Anand, and Aadhaar Shila.
Jeevan Umang is a flagship insurance product. Money-back plans like Bima Shree, Jeevan Shiromani, Nthe ew Money Back Plan (20 and 25 years), and Jeevan Tarun cater to various life stages.
Pension schemes such as Pradhan Mantri Vaya Vandana Yojana, New Jeevan Nidhi, and Jeevan Akshay provide financial security for retirement.
That Reached The Globe
Beyond India, LIC has extended its presence to 14 countries, catering to the insurance needs of Non-Resident Indians.
The organization oversees eight zonal offices, 113 divisional offices, and 2,048 branches nationwide from its Mumbai headquarters.
With a customer base of 290 million policyholders, LIC continues to dominate the global insurance landscape.
Caring for Employees Too
LIC’s commitment extends beyond customers. Programs like the Agents Housing Scheme and LIC-HFL provide housing loans for agents.
Employee benefits include meal vouchers and other incentives. In 2010, LIC introduced a unique benefits plan based on hierarchical positions, showcasing its dedication to its workforce.
Beckons With Open Arms
LIC’s journey from insuring lives to building a nation exemplifies resilience, innovation, and an unyielding commitment to its people.
As it moves forward, LIC aims to strengthen its digital capabilities, expand global operations, and continue being a beacon of financial security.
It’s not just about insuring lives; it’s about safeguarding dreams and inspiring future generations.
For over 68 years, LIC has been synonymous with trust and security for over 130 crore Indians. Its iconic slogan, “I’m here,” captures the essence of its mission—to be a constant in the lives of its policyholders, from bustling cities to quiet villages.
With around 81 companies announcing their third-quarter results for FY2024-25, the market is witnessing a mixed trend in Q3 results. Some companies are experiencing an increase in profits, while others are facing a downturn in their Q-o-Q figures. Among this fleet of financial results, MakeMyTrip has mainly made headlines with its 24% revenue growth in the December 2024 quarter.
What propelled this growth? And has the company shown similar growth in other financial parameters? Let’s understand the top 3 highlights and reasons for the positive surge of MakeMyTrip.
Deep Kalra founded MakeMyTrip in 2000. It is a leader in India’s online travel sector. Initially serving the US-India travel market, it expanded to India in 2005. As low-cost airlines gained traction, MakeMyTrip became a go-to platform for booking flights, hotels, and holiday packages. The company has since diversified into homestays, villas, and ground transportation services, including cabs, buses, and trains.
MakeMyTrip is also expanding into the business travel space with myBiz and creating an exclusive platform for travel agents, myPartner. Recently, the company entered the Gulf market, offering competitive deals on flights and hotels. The company remains a dominant player in online travel bookings with its three brands—MakeMyTrip, Goibibo, and RedBus.
Listed on NASDAQ as MMYT, MakeMyTrip has a current stock price of $109.44 and an EPS of $0.46. Its latest quarter, ending December 2024, reported earnings of $0.39 per share, a slight increase from $0.35 a year ago, adjusted for non-recurring items.
Highlights Of The Q3 Financial Results:
Net Profit Trend:
MakeMyTrip has seen an overall increase in the quarterly net profit, with the latest increase being 11.8% y-o-y as of the December 2024 quarter. The sudden spike in the profit in the March 2024 quarter happened because the company achieved its highest-ever annual gross booking, witnessed high repeat rates, and optimized tech costs due to a unified back-end Infrastructure.
The company’s quarterly revenue trend has been upward. In the December 2024 quarter, revenue reached $267,362 thousand, a 24.8% year-on-year increase over December 2023 ($214,216 thousand).
The increase was mainly due to strong travel demand in India, both for domestic and international outbound travel, during the quarter ending 31 December 2024 compared to the same period in 2023.
The air ticketing segment earned $61.3 million in revenue, an 18% increase from $51.7 million in 2023. However, nearly half of this revenue, $32.4 million, was spent on customer inducement costs, such as discounts and promotions.
Despite the rise in revenue, profit as a percentage of gross bookings decreased slightly to 6.1%, down from 6.3% in the same quarter last year. The adjusted margins also declined somewhat. Even though the revenue grew, higher costs for discounts and incentives led to a slight dip in profitability, with adjusted margins decreasing from 6.3% to 6.1%.
Growth In Bookings Of Hotel Packages:
MakeMyTrip’s hotel and package business grew by 17.2%, reaching $147.1 million for the quarter, up from $125.5 million in 2023. This growth was driven by a 21.9% rise in gross bookings, fueled by more hotel room nights being booked as travel both within India and internationally increased.
Profits also saw a 23.4% rise, reaching $121.9 million, up from $98.8 million last year. However, discounts and promotions impacted profitability. Higher costs associated with these promotions increased to $44.1 million, up from $35.7 million in the previous year. Despite this, the adjusted margin as a percentage of revenue slightly improved from 17.7% to 17.9%.
Growth In Bus Ticketing Segment:
The bus ticketing business saw impressive growth of 31.7% this quarter. Revenue reached $31.8 million, up from $24.2 million in the same quarter last year. A rise in demand for bus travel drove this growth. Additionally, profitability in the bus ticketing segment increased by 30.2%, showing strong performance.
Besides these, the company’s quarterly performance was also affected by a recent development in MakeMyTrip (India) Pvt. Ltd. In the third quarter of FY2025, the company’s wholly-owned subsidiary, MakeMyTrip (India) Private Limited (“MakeMyTrip India”), signed a business transfer agreement to acquire a corporate travel and expense management business under the “HAPPAY” brand from VA Tech Ventures Private Limited. The acquisition is valued at up to INR 1.0 billion (or $11.7 million), subject to certain adjustments. Source: Company Press Release
Bottomline:
The Indian travel and tourism sector is growing rapidly, with travelers eager to explore new destinations. While Indian destinations remain popular, countries also intensify efforts to attract Indian travelers.
The company’s strong financial performance this quarter demonstrates the successful execution of strategic priorities and the resilience of the travel sector. By focusing on cost management and investing in technology and customer experience, the company has capitalized on the growing travel demand, driving profitable growth.
However, as the market evolves, these trends may offer opportunities to strengthen operations along with a scope of further considerations with respect to the growth and marketing plans. So, if you plan to invest in MakeMyTrip, thoroughly research the market factors and company fundamentals to ensure it aligns with your portfolio goals.
Disclaimer Note: The securities quoted, if any, are for illustration only and are not recommendatory. This article is for education purposes only and shall not be considered as a recommendation or investment advice by Equentis – Research & Ranking. We will not be liable for any losses that may occur. Investments in the securities market are subject to market risks. Read all the related documents carefully before investing. Registration granted by SEBI, membership of BASL & certification from NISM in no way guarantee the performance of the intermediary or provide any assurance of returns to investors.
The electric vehicle (EV) revolution is no longer a vision of the future—it is today’s reality, driving significant transformations in the automotive industry. 2025 will be a game-changer for the electric vehicle (EV) industry, with a remarkable shift that could redefine its future.
EV launches in India are expected to outnumber petrol and diesel cars for the first time. Of the 28 vehicle launches planned for the year, 18 will be EVs. Major players like Kia, Maruti Suzuki, and Hyundai are gearing up for substantial growth, driven by government incentives and significant improvements in EV infrastructure.
The number of EVs scheduled for launch this year is nearly four times higher than the 4–5 models introduced over the past two years. It also surpasses the total vehicle launches (EV and ICE) of 11 in 2023 and 15 in 2024. Source: Economic Times
Growing Momentum in India’s Electric Vehicles Market
As per Fortune Business Insights, the Indian Electric Vehicles market is projected to grow significantly, rising from USD 3.21 billion in 2022 to an impressive USD 113.99 billion by 2029, with a compound annual growth rate (CAGR) of 66.52%.
In FY24, India recorded EV sales of 1.75 million units as compared to 1.52 million units in FY23, marking a robust year-on-year increase of 40.31%. Industry forecasts indicate that electric vehicle sales will grow at a compound annual growth rate (CAGR) of 43%, reaching 9.32 million units by 2030. Electric SUVs are expected to account for up to 61% of this demand.
To further accelerate EV adoption, the government has introduced the PM E-DRIVE scheme, allocating ₹10,900 crore (USD 1.30 billion) for its implementation from October 1, 2024, to March 31, 2026. This initiative focuses on enhancing EV adoption, developing charging infrastructure, and boosting Electric Vehicle manufacturing nationwide. Source: IBEF/Economic Times
Automakers Gearing Up for the EV Boom
The automotive industry is witnessing a paradigm shift, with traditional manufacturers and startups ramping up their EV offerings. Companies like Tata Motors, Mahindra Electric, and Ola Electric have already launched competitive models that cater to diverse market segments. Global players such as Tesla and BYD are also eyeing the Indian market, further intensifying competition.
In addition to launching new models, automakers invest in research and development to improve battery efficiency, reduce production costs, and enhance overall performance.
Industry experts predict that zero-emission vehicles will be the primary drivers of growth in 2025, contributing to over 50% of the incremental sales of 200,000 units in the passenger vehicle segment. As a result, the share of EVs in total car sales is projected to double, reaching 4% by the end of the year. Source: IBEF/ Economic Times
Boosting Charging Infrastructure For EV Adoption
One of the critical factors for the widespread adoption of Electric Vehicles is the availability of reliable charging infrastructure. As of now, India is making progress in this area, with public and private stakeholders collaborating to set up charging networks.
According to Industry experts, manufacturers are focused on expanding and advancing the electric vehicle market in India. Maruti Suzuki is taking proactive steps to support the upcoming launch of its first electric vehicle by installing fast chargers at its dealerships every 5-10 km in the top 100 cities.
Meanwhile, Hyundai, the Korean automotive giant, anticipates a significant rise in the share of electric vehicles in India’s car market. They expect India’s Electric Vehicles market share to grow to 15-20% by 2030, up from just 2% in 2024. They attribute this growth to government initiatives, like the reduced GST rate on EVs and the introduction of new products by several original equipment manufacturers (OEMs).
To tap into this potential, Hyundai has started assembling battery packs in India to keep prices competitive and has partnered with a local supplier to source cells for electric cars slated for release in the coming years. Additionally, the company is working towards setting up 600 fast chargers along major highways across India by 2030. Source: Economic Times
Government Policies Fueling the Transition
The Indian government’s commitment to electrification has been instrumental in paving the way for a robust EV ecosystem. Policies like the Production-Linked Incentive (PLI) scheme for
Advanced Chemistry Cell (ACC) batteries and tax benefits on EV purchases have made electric vehicles more accessible. Moreover, the government’s target of achieving 30% EV penetration by 2030 underscores its dedication to reducing carbon emissions and promoting green mobility.
Globally, countries like the United States, China, and those in the European Union have also implemented stringent emission norms and offered subsidies to encourage the adoption of electric vehicles. This global momentum is expected to ripple across markets, including India, propelling the sector toward exponential growth.
Sustainability and Environmental Impact
One of the primary drivers behind the shift to EVs is their potential to reduce greenhouse gas emissions significantly. According to experts, transitioning to electric mobility could help India achieve its climate goals, including reducing carbon intensity by 33-35% by 2030. EVs contribute to cleaner air and lower noise pollution, creating a more sustainable urban environment.
Using renewable energy, such as solar and wind power, to charge Electric Vehicles can increase their environmental benefits. As more renewable energy is added to the grid, electric vehicles’ carbon footprints will continue to decrease.
Challenges and the Road Ahead
Despite the promising outlook, the EV industry faces several challenges. Some of the hurdles include high initial costs, limited charging infrastructure, and dependency on imported components. Additionally, consumer perceptions regarding the reliability and longevity of EVs remain a concern.
These challenges can be overcome through collaboration between governments, private companies, and research institutions. For example, locally producing batteries and other parts could lower costs and create jobs, boosting economic growth.
The Role of Technology in Shaping the Future
The development of solid-state batteries, with higher energy densities and faster charging times, promises to revolutionize the EV landscape. These innovations are expected to address key concerns, such as range and charging time, making electric vehicles even more practical for everyday use.
The Rise of Electric Two-Wheelers and Commercial Vehicles
While passenger cars have dominated the EV narrative, electric two-wheelers and commercial vehicles are emerging as significant contributors to the market. In India, two-wheelers account for a substantial portion of vehicle sales, making their electrification a crucial step toward achieving sustainable mobility. Companies like Hero Electric and Ather Energy are leading the charge in this segment.
Similarly, the electrification of commercial vehicles, such as buses and trucks, is gaining momentum. These vehicles play a vital role in reducing emissions from the transportation sector and are supported by government incentives and corporate commitments to sustainability.
Consumer Awareness and Adoption
The success of the EV industry hinges on consumer acceptance. Educating consumers about the benefits of EVs—including lower operating costs, reduced environmental impact, and government incentives—is crucial. Test drives, advertising campaigns, and influencer endorsements can significantly build trust and drive adoption.
Driving into a Greener Future
Electric vehicles are at a turning point, with 2025 set to be a transformative year. Governments, automakers, and consumers are working together to move towards a sustainable, electric future. While challenges remain, technological progress, infrastructure, and policies offers hope. As we approach 2025, the goal of a cleaner, greener transportation system is becoming a reality. The EV revolution is not just about how we travel; it’s about creating a better future for the planet and future generations.
Disclaimer Note: The securities quoted, if any, are for illustration only and are not recommendatory. This article is for education purposes only and shall not be considered as a recommendation or investment advice by Equentis – Research & Ranking. We will not be liable for any losses that may occur. Investments in the securities market are subject to market risks. Read all the related documents carefully before investing. Registration granted by SEBI, membership of BASL & certification from NISM in no way guarantee the performance of the intermediary or provide any assurance of returns to investors.
Hindustan Unilever Limited (HUL), one of India’s leading FMCG giants, has made headlines with two significant developments. The company acquired a majority stake in Minimalist, a fast-growing skincare brand, for Rs 2,955 crore, and its impressive Q3 performance saw a 19% year-on-year (YoY) jump in profit after tax (PAT). Source: Economic Times/Moneycontrol
Despite reporting strong quarterly earnings, Hindustan Unilever’s share price dropped by 3.7% on January 23, 2025, due to a weaker-than-expected Q3 performance.
HUL reported impressive financial results for the third quarter of FY25 but could not meet market expectations. The company’s PAT jumped 19% year over year to Rs 3,001 crore, primarily due to a one-time gain of Rs 509 crore from the divestment of the Pureit business. Strong consumer demand across categories drove HUL’s revenue from operations to rise by 2%, reaching ₹15,195 crore.
Operating profit for Q3 rose by 1% YoY to ₹3,570 crore, while margins dipped by 20 basis points (bps) to 23.5%.
Beauty and Wellbeing Business:
The segment grew by 1%, but volumes declined in the low single digits. Hair care achieved mid-single-digit competitive volume growth, led by strong Dove, Tresemme, and Clinic Plus performances.
Home Care Business:
Sales in the home care segment increased by 6%, driven by high-single-digit volume growth in fabric wash and household care.
Personal Care Business:
The personal care segment recorded a 4% decline in sales with mid-single-digit volume drops. Strategic actions in skin cleansing resulted in market share gains during the quarter.
Packaged Foods Business:
Packaged foods saw mid-single-digit growth, led by robust performance in future core and market-maker segments. Ice cream revenue remained flat year over year. Source: Economic Times
HUL Acquires 90% Stake in Minimalist
Hindustan Unilever’s acquisition of a 90% stake in Minimalist signals a calculated move to strengthen its presence in the high-growth skincare segment. Minimalist, known for its science-driven and ingredient-focused skincare products, has carved a niche in the market with its transparent and affordable offerings.
The deal, among the largest in the direct-to-consumer (D2C) segment, is set to be finalized by the end of the June 2025 quarter.
According to Tracxn, a private markets data provider, founders Rahul Yadav and Mohit Yadav hold a majority stake of 61%. Peak XV Partners follows with 27.4% ownership, while Twenty Nine Capital holds 5.6%. The remaining stake is attributed to ESOPs. Source: Moneycontrol
Reinforcing Leadership in FMCG
By expanding into the high-potential skincare market, HUL diversifies its portfolio and future-proofs its business against evolving consumer trends. The Minimalist acquisition offers HUL an opportunity to integrate the brand’s innovative approach with its extensive reach and expertise.
What Lies Ahead?
Integration of Minimalist:
A smooth integration of Minimalist into HUL’s operations will be crucial for realizing the full potential of the acquisition.
Innovation-Driven Growth:
HUL’s focus on innovation, backed by its R&D capabilities, will be pivotal in driving long-term growth.
Sustainability Goals
Aligning with global sustainability trends, HUL’s expansion into transparent and ethical skincare through Minimalist resonates with its commitment to responsible business practices.
Conclusion
By tapping into the booming skincare market and maintaining strong financial performance, HUL continues to set benchmarks in the FMCG industry. HUL is strengthening its leadership by setting industry standards and adapting to challenges and opportunities with a focus on changing consumer needs.
Disclaimer Note: The securities quoted, if any, are for illustration only and are not recommendatory. This article is for education purposes only and shall not be considered as a recommendation or investment advice by Equentis – Research & Ranking. We will not be liable for any losses that may occur. Investments in the securities market are subject to market risks. Read all the related documents carefully before investing. Registration granted by SEBI, membership of BASL & certification from NISM in no way guarantee the performance of the intermediary or provide any assurance of returns to investors.
HUL reported a 19% YoY jump in net profit to Rs 3,001 crore in Q3 FY25, primarily driven by a one-time gain from the ‘Pureit’ business divestment.
How did HUL’s revenue perform in Q3?
HUL’s revenue from operations rose 1.79% YoY to Rs 15,195 crore in Q3 FY25, with underlying sales growth (USG) of 2% and flat underlying volume growth (UVG).
What was the impact of the Minimalist Stake Buyout?
The Minimalist Stake Buyout had a limited impact on HUL’s share price. Investors likely focused more on the company’s overall financial performance and future growth prospects.
What are the key factors driving HUL’s performance?
HUL’s performance is driven by market share, product innovation, brand building, effective distribution channels, and its ability to adapt to changing consumer preferences.
On a day when most sectors on Dalal Street faced challenges, Indian IT stocks stood out by registering notable gains. Heavyweight companies such as Tata Consultancy Services (TCS), Wipro, Infosys, Tech Mahindra, and HCLTech significantly pushed the benchmark indices, especially after a substantial downturn in the previous session. This resilience prompts an important question: What factors drive the surge in IT stocks amid broader market volatility?
Current Performance of IT Stocks
As of yesterday, on 22nd January, the following movements were observed:
TCS: Shares increased by 3.04%, reaching ₹4,158.45.
Wipro: Experienced a 3.37% rise, trading at ₹308.40.
Infosys: Saw a 3.11% uptick, with shares closing at ₹1,856.70.
Several key elements have contributed to the robust performance of Indian IT stocks:
Optimism Around AI Investments
A significant rally driver was US President Donald Trump’s announcement of a private sector investment of up to $500 billion to fund artificial intelligence infrastructure. This optimism offset uncertainties related to his tariff policy, promoting stocks.
Positive Global Cues
The U.S. markets exhibited strength, with the Dow Jones Industrial Average ending 1.24% higher and the Nasdaq Composite rising 0.64%. This global optimism has a cascading effect on Indian IT stocks, given their significant exposure to U.S. markets.
Major IT firms like TCS, Infosys, and Wipro reported strong third-quarter earnings, surpassing market expectations. Infosys, which rose 3.2%, was the best-performing Sensex stock and the biggest contributor to index gains, followed closely by TCS.
Rupee Depreciation
The Indian rupee’s depreciation against the U.S. dollar has positively impacted IT companies. Since a significant portion of their revenue is earned in dollars, a weaker rupee translates to higher earnings when converted to the local currency.
Market Sentiment and Analyst Outlook
Analysts have maintained a positive outlook for the IT sector. Global brokerage firms have given ‘Buy’ ratings to several IT stocks, anticipating growth driven by AI and cloud computing investments. Source: Mint
Market Overview
Despite the rally in IT stocks, the broader market faced selling pressure. On Wednesday, the Sensex ended the session at 76,405, with a gain of 566 points (0.75%), while the Nifty 50 index closed at 23,155, with a gain of 131 points (0.6%). However, broader indices faced declines, with the Nifty Midcap100 falling 1.3% and the Nifty Smallcap100 dropping 1.6%.
Market breadth remained weak, with 2,802 stocks declining and only 1,142 advancing on the BSE. The total market capitalisation of BSE-listed firms declined by ₹2.2 trillion to ₹422 trillion, with a total decline of ₹20.1 trillion so far this month.
Understanding the Dynamics: A Step-by-Step Breakdown
To comprehend the surge in IT stocks amid market volatility, let’s dissect the contributing factors:
Global Market Influence
Indian IT companies have substantial exposure to global markets, particularly the U.S. Positive movements in U.S. indices often increase investor confidence in Indian IT stocks.
Corporate Earnings
Strong quarterly results indicate robust business performance and future growth potential, making these stocks attractive to investors.
Currency Fluctuations
A depreciating rupee benefits exporters like IT companies, as their dollar-denominated revenues yield higher returns when converted to rupees.
Policy Announcements
Government initiatives and private sector investments, such as the $500 billion AI infrastructure funding, boost investor confidence in long-term growth prospects.
Analyst Recommendations
Positive analyst reports and ‘Buy’ ratings can influence investor behavior, increasing demand and higher stock prices.
The resilience of Indian IT stocks amid broader market volatility can be attributed to strong corporate earnings, favorable global market trends, currency advantages, and positive sentiment around AI investments. These factors collectively strengthen investor confidence, leading to the observed surge in IT stock prices. As the global economic landscape continues to evolve, the performance of these companies will remain a focal point for market participants.
Disclaimer Note: The securities quoted, if any, are for illustration only and are not recommendatory. This article is for education purposes only and shall not be considered as a recommendation or investment advice by Equentis – Research & Ranking. We will not be liable for any losses that may occur. Investments in the securities market are subject to market risks. Read all the related documents carefully before investing. Registration granted by SEBI, membership of BASL & certification from NISM in no way guarantee the performance of the intermediary or provide any assurance of returns to investors.
The financial scene in India is buzzing with changes, and one of the latest game-changers is SEBI’s introduction of Specialised Investment Funds (SIFs). SIFs are tailored investment options for savvy investors ready to explore advanced strategies and diverse asset classes.
This new asset class, between mutual funds and PMSes (Portfolio Management Services), will introduce Indian investors to various new investment products and strategies.
SEBI has set a minimum investment bar of ₹10 lakh for SIFs, making it clear that these funds are for those serious about investing. The available range of products now spans mutual fund schemes starting at ₹10, PMSes with a minimum investment of ₹50 lakh, and Alternative Investment Funds (AIFs) requiring at least ₹1 crore. Source: Moneycontrol
Let’s break down what SIFs are all about, why this move matters, and how it shakes up the investment world.
What Are Specialised Investment Funds (SIFs)?
SIFs are a new category of funds designed to offer advanced investment opportunities beyond traditional avenues like equity mutual funds or fixed deposits.
SEBI’s new framework for SIFs exempts accredited investors (These investors are considered financially sophisticated and capable of handling higher-risk investments) from certain rules. Mutual funds can now offer investment strategies in open-ended, close-ended, and interval formats, catering to investors with varying risk levels and investment goals.
SIFs allow investors to diversify their portfolios in a transparent structure. Launching new strategies will follow the same process as mutual funds, with clear details on subscriptions, redemptions, and fees in line with mutual fund regulations. Source: livemint
Key Features of SIFs
Diversification of Asset Classes: SIFs expose asset classes typically inaccessible to retail investors, such as real estate, infrastructure, or private debt.
Professional Management: SIFs are managed by experts with deep knowledge of specific sectors, ensuring informed investment decisions.
Let’s look at the differences between SIFs and Mutual Funds.
Investment Limits and Flexibility
With a minimum investment of ₹10 lakh, Specialised Investment Funds (SIFs) provide asset managers with more flexibility compared to traditional mutual fund schemes. SIFs allow up to 15% allocation in a single security, which is notably higher than the 10% limit set for mutual funds. For fixed-income strategies, exposure can reach 20% in a single issuer, potentially increasing this limit to 25% with board approval. However, the existing 10% limit for a single issuer remains for traditional fixed-income strategies.
Expense Ratio and Fees
The cost structure for SIFs mirrors that of mutual funds. For example, equity funds can charge a maximum Total Expense Ratio (TER) of 2% for the first ₹250 crore. After that, the cost decreases incrementally—1.75% for the next ₹1,250 crore, 1.60% for amounts between ₹1,500 and 3,000 crore, and so on. Additional expenses can also be charged over the TER.
Increased Investment Limits for REITs and INVITs
A significant change with SIFs is doubling permissible investment limits in Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (INVITs) to 20%. This provides more flexibility in allocation and opens new avenues for diversification. In contrast, the limit for these investments in mutual funds is currently capped at 10%. Source: Moneycontrol
SEBI’s ₹10 Lakh Minimum Threshold: What It Means
The decision to set a minimum investment threshold of ₹10 lakh aims to ensure that only informed and financially capable investors participate in SIFs. Here’s why:
Targeting Sophisticated Investors: SIFs involve complex strategies and high risks. A higher threshold ensures participants understand the risks and have sufficient financial backing.
Mitigating Retail Participation Risks: By limiting access to high-net-worth individuals (HNIs) and institutional investors, SEBI protects less-informed retail investors from potential losses.
Encouraging Long-term Investments: The substantial minimum investment promotes a long-term approach, discouraging speculative trading.
Advantages of Investing in SIFs
Access to Advanced Strategies: Investors gain exposure to sophisticated strategies like arbitrage, hedging, and leverage, which are typically unavailable in traditional funds.
Portfolio Diversification: SIFs allow investors to diversify across unconventional asset classes, reducing reliance on traditional equities and bonds.
Potential for Higher Returns: With advanced strategies and exposure to high-growth sectors, SIFs offer the potential for superior long-term returns.
Professional Expertise: Experienced fund managers with sector-specific knowledge oversee these funds, enhancing decision-making quality.
Risks Associated with SIFs
While SIFs offer lucrative opportunities, they come with their share of risks:
High Entry Barrier: The ₹10 lakh threshold limits access to wealthy investors, excluding retail investors.
Complex Strategies: Advanced strategies can be challenging to understand, requiring a high level of financial literacy.
Market Volatility: Investments in REITs, InvITs, and private equity are subject to market fluctuations, making them inherently risky.
Illiquidity: Many SIFs have lock-in periods or restrictions on premature exits, reducing flexibility.
SEBI’s Regulatory Framework for SIFs
SEBI’s regulatory approach aims to balance protecting investors and fostering market growth. Key regulations include clear disclosure requirements, where fund managers must outline investment objectives, strategies, and risk factors.
Only qualified and experienced professionals with proven track records can also manage SIFs, ensuring credibility. Regular audits and transparency in reporting further ensure compliance, which helps build trust among investors.
How SIFs Fit into India’s Financial Ecosystem
The introduction of SIFs aligns with India’s evolving financial market:
Catering to HNIs and Institutional Investors: With rising wealth, demand for sophisticated investment products has increased among HNIs.
Boosting Alternative Investments: SIFs support sectors like infrastructure and real estate, which are crucial for economic growth.
Complementing Traditional Funds: SIFs provide an alternative for investors seeking diversification beyond conventional equity and debt funds.
Impact on Investors and Market Dynamics
The launch of SIFs is expected to offer several benefits. It will expand investment options by providing access to advanced strategies and unconventional asset classes. Additionally, the sophisticated nature of SIFs could attract global investors looking to tap into India’s growth potential. Moreover, the complexity of SIFs will likely boost financial literacy, encouraging the development of educational initiatives to help investors better understand these opportunities.
Expert Opinions on SIFs
Market experts believe SIFs hold significant potential. They encourage financial sophistication by pushing investors to grasp advanced financial concepts, promoting a culture of informed decision-making. Focusing on alternative assets and advanced strategies could spur innovation within India’s financial sector.
However, the high entry barrier and complexity of SIFs may limit participation from retail investors, presenting challenges in inclusivity and broader investor engagement.
Who Should Invest in SIFs?
SIFs are best suited for:
High-Net-Worth Individuals (HNIs): Investors with substantial disposable income and a high-risk appetite.
Institutional Investors: Corporations, pension funds, and endowments seeking diversified portfolios.
Sophisticated Retail Investors: Individuals with a strong understanding of financial markets and advanced investment strategies.
Conclusion
SEBI’s Introduction of Specialised Investment Funds (SIFs) is a milestone in India’s financial market evolution. While the ₹10 lakh minimum threshold ensures participation by informed investors, it also highlights the need for enhanced financial literacy. SIFs promise diversification, professional management, and the potential for high returns, making them a valuable addition to the investment landscape. However, their complexity and high-risk nature necessitate caution and thorough understanding.
Disclaimer Note: The securities quoted, if any, are for illustration only and are not recommendatory. This article is for education purposes only and shall not be considered as a recommendation or investment advice by Equentis – Research & Ranking. We will not be liable for any losses that may occur. Investments in the securities market are subject to market risks. Read all the related documents carefully before investing. Registration granted by SEBI, membership of BASL & certification from NISM in no way guarantee the performance of the intermediary or provide any assurance of returns to investors.
FAQs
Will SIFs help investors?
Experts believe the SIF framework allows portfolio managers to create innovative, tailored products with broader exposure limits, enabling investors to pursue strategies that align with their risk profiles and financial goals.SIFs offer unique opportunities not found in mutual funds, particularly in concentration and thematic approaches, as well as credits.
Can SIFs use derivatives in their investment strategy?
Currently, mutual funds are restricted from using derivatives for investment, allowing them only for hedging and portfolio rebalancing. Earlier this year, SEBI proposed allowing SIFs to use derivatives as an investment strategy. However, the final framework remains unclear, which is crucial for modern portfolio management.
What are the potential benefits?
Access to innovative sectors, potential for significant capital appreciation, diversification beyond traditional asset classes, and professional management.
What are the associated risks?
In some cases, there is higher volatility, illiquidity, potential for significant capital loss, and limited transparency.
How can I invest in these funds?
Through financial advisors, investment platforms specializing in alternative investments, or direct with fund managers.
If you’re interested in the stock market or companies specializing in water solutions and infrastructure development, you might want to learn more about Denta Water and Infra Solutions Ltd’s IPO. As it opens today for subscription, the issue size of ₹220.50 crore has generated significant interest among investors.
Yesterday, it announced that it had secured slightly more than ₹66 crore from anchor investors before its IPO. Here’s a detailed breakdown of everything you need to know about this IPO.
Denta Water and Infra Solutions Ltd is launching an IPO worth ₹220.50 crore, consisting of a fresh issuance of 75 lakh equity shares priced at the upper band of ₹294 per share. The shares will be listed on both the BSE and NSE, with the allotment expected to be finalized on Monday, January 27, 2025, and a tentative listing date set for Wednesday, January 29, 2025.
Allocation of Shares
Retail investors can apply for a minimum of 50 shares of Denta Water and Infra IPO, requiring an investment of ₹14,700, with a maximum limit of 650 shares, amounting to ₹1,91,100. Small High-Net-Worth Individuals (S-HNIs) can invest a minimum of 700 shares for ₹2,05,800, with a cap of 3,400 shares, amounting to ₹9,99,600. Large High-Net-Worth Individuals (B-HNIs) have a minimum investment of 3,450 shares, requiring ₹10,14,300.
The net proceeds from the IPO will be utilized for the following purposes:
Working Capital Requirements: To fund the company’s operations and business expansion.
General Corporate Purposes: Utilization as per applicable laws for business growth and development.
Grey Market Premium (GMP)
The Denta Water IPO Grey Market Premium (GMP) currently stands at ₹165, indicating a strong demand. Based on the IPO price of ₹294, the estimated listing price is projected to be ₹459, reflecting a 56.12% premium. The positive GMP suggests strong investor confidence and potential for a solid listing. Source: Mint
Company Overview
Incorporated in 2016, Denta Water and Infra Solutions Ltd is a leading player in water and infrastructure solutions. The company specializes in designing, installing, and commissioning water management projects, focusing on groundwater recharge.
Key projects executed:
Byrapura Project
Hiremagaluru LIS
KC Valley Project
These projects have significantly contributed to Bengaluru’s wastewater management and the Jal Jeevan Mission. The company owns 98 acres of agricultural land in Madikeri, Karnataka, where it cultivates coffee, pepper, and cardamom. Additionally, it operates a beach resort in Udupi, generating revenue through a facility management agreement.
Service Offerings:
Preliminary investigations and reconnaissance
Feasibility studies
Planning and project formulation
Field surveys and soil testing
Design services
Tender bidding consultancy
Project management and construction supervision
Operation and maintenance guidelines
Engineering procurement consultancy
Turnkey projects
As of November 30, 2024, the company has successfully executed 32 water management projects, comprising:
11 as the main contractor
1 in a joint venture
20 as a sub-contractor
Denta Water is also involved in infrastructure projects across railways and highways.
Financials:
Revenue for the period ending September 30, 2024, was recorded at ₹98.51 Cr., which is lower than the previous fiscal year’s figure of ₹241.84 Cr. as of March 31, 2024, but shows a steady upward trend when compared to ₹175.75 Cr. in March 2023 and ₹119.64 Cr. in March 2022. The company’s profitability has also seen an upward trajectory over the years.
Profit after tax for the half-year ending September 30, 2024, reached ₹24.2 Cr., following ₹59.73 Cr. for the full year ending March 31, 2024, up from ₹50.11 Cr. in March 2023 and ₹38.34 Cr. in March 2022. Net worth has shown consistent growth, reaching ₹188.46 Cr. as of September 30, 2024, up from ₹164.26 Cr. in March 2024, ₹104.55 Cr. in March 2023, and ₹54.43 Cr. in March 2022.
SWOT Analysis of Denta Water and Infra Solutions Ltd
STRENGTHS
WEAKNESSES
Strong Backing: Supported by NTPC Limited, ensuring financial and operational reliability.
Large Portfolio: A diversified renewable energy portfolio of 14,696 MW across solar and wind projects.
Execution Expertise: Proven track record in large-scale renewable energy projects.
Sector Dependency: Heavily reliant on the renewable energy sector. It is making it vulnerable to sector-specific risks.
Revenue Concentration: A significant portion of revenue depends on key off-takers.
OPPORTUNITIES
THREATS
Rising Demand for Renewable Energy: With an increasing global focus on sustainable energy, the company is well-positioned to capitalize on the demand.
Government Support: Strong government push towards renewable energy adoption and infrastructure development.
Market Competition: Intense rivalry from established and emerging players in the renewable energy space.
Regulatory Risks: Changes in government policies or tariffs could impact revenue streams.
Denta Water and Infra Solutions Ltd’s IPO India’s growing water infrastructure sector. The company is poised for growth with a solid track record, diversified business model, and promising financial performance. However, investors should consider the company’s dependence on government projects and working capital requirements before investing.
The IPO allotment results are expected on January 27, 2025, and the shares will tentatively list on January 29, 2025, on both the BSE and NSE. Stay tuned for further updates and market trends to make an informed investment decision.
Disclaimer Note: The securities quoted, if any, are for illustration only and are not recommendatory. This article is for education purposes only and shall not be considered as a recommendation or investment advice by Equentis – Research & Ranking. We will not be liable for any losses that may occur. Investments in the securities market are subject to market risks. Read all the related documents carefully before investing. Registration granted by SEBI, membership of BASL & certification from NISM in no way guarantee the performance of the intermediary or provide any assurance of returns to investors.
Major players have long dominated India’s fast-moving consumer goods (FMCG) sector with a widespread national and international presence. However, regional brands have carved out a significant market share by leveraging competitive pricing, localized operations, and deep-rooted connections with regional consumer bases. During the pandemic, their agility allowed them to capture notable market share from larger corporations.
The FMCG market’s total revenue is expected to grow at an impressive CAGR of 27.9% from 2021 to 2027, reaching nearly US$ 615.87 billion. In 2022, the urban segment contributed 65% to the overall annual FMCG sales, while rural India accounted for more than 35%, showcasing the sector’s diverse consumer base (ibef.org). Yet, the fiscal year 2023-24 has revealed vulnerabilities in the growth trajectory of regional players, with many experiencing a deceleration in sales growth. Source: ibef.org
The Ascendancy of Regional Brands
During the COVID-19 pandemic, supply chain disruptions severely impacted larger FMCG companies, allowing regional brands to enter the market. Their localized manufacturing and distribution networks enabled them to meet consumer demands efficiently.
Market Share and Growth:
Regional FMCG brands controlled over 40% of the market in categories like snacking and spices (Economic Times). Examples include Balaji Wafers in the snacks segment and MTR in the spices category.
Pandemic Advantage:
Proximity to local markets and reduced dependence on global supply chains provided a strategic edge, enabling faster replenishment and reduced costs.
Consumer Trust:
Many consumers favored regional brands for their perception of authenticity and alignment with local tastes.
Key Challenges Leading to Growth Deceleration
Despite their pandemic-era success, regional FMCG brands have encountered significant hurdles in sustaining rapid growth in the post-pandemic economic environment. Key challenges include:
Economic Slowdown
The broader economic slowdown in India has affected discretionary spending, impacting regional and national FMCG players. Lower rural incomes and higher inflation have reduced the purchasing power of a significant consumer base.
Declining Consumer Sentiment:
Economic data from FY 2023-24 indicates a contraction in FMCG sales volume growth of 6.4% during Q4 2024, reflecting a shift toward value-for-money products (NielsenIQ).
Operational Scalability
For many regional brands, the rapid revenue growth experienced during the pandemic posed challenges in scaling operations.
Supply Chain Limitations: Chandu Virani, founder of Balaji Wafers, highlighted operational inefficiencies and difficulties in sourcing raw materials as key constraints (Economic Times).
Production Challenges: Expanding manufacturing capabilities to meet heightened demand proved challenging, sometimes leading to supply shortages.
Commodity Price Volatility:
Fluctuations in the prices of key commodities, such as edible oils and grains, have disrupted cost structures.
Impact on Margins:
Although commodity prices declined in 2023, the benefits were insufficient to offset earlier inflationary pressures, squeezing profit margins.
Rising Competition from National Players
Large FMCG companies have begun to recover from pandemic disruptions, reclaiming market share by deploying aggressive marketing strategies and leveraging economies of scale.
Implications for the FMCG Sector
Shifting Market Dynamics
As regional brands grapple with operational and economic challenges, national FMCG players are positioned to regain some of their lost market share. This shift may lead to intensified competition across product categories.
Consumer Impact
Changes in market dynamics will likely affect product availability and pricing. Consumers may experience a shift toward either premium offerings from larger companies or more value-driven products from regional players.
Strategic Adjustments
Both regional and national brands must reassess their strategies to remain competitive. Areas of focus include:
Supply Chain Resilience: Investing in technology and infrastructure to streamline operations.
Sustainable Pricing Models: Balancing competitive pricing with profitability.
Localized Product Development: Tailoring products to meet evolving consumer preferences.
Conclusion
Regional FMCG brands in India have demonstrated remarkable resilience and adaptability, particularly during the pandemic, by capturing significant market share through localized operations and competitive pricing. However, the economic challenges of 2023-24 have highlighted the need for these brands to evolve. Addressing operational inefficiencies, enhancing supply chain capabilities, and navigating commodity price volatility will be critical to sustaining growth in a highly competitive market.
As the FMCG sector continues to evolve, the interplay between regional and national players will shape consumer experiences and industry dynamics in the years to come. For stakeholders across the industry, the current period represents both a challenge and an opportunity to innovate and adapt to a rapidly changing landscape.
Disclaimer Note: The securities quoted, if any, are for illustration only and are not recommendatory. This article is for education purposes only and shall not be considered as a recommendation or investment advice by Equentis – Research & Ranking. We will not be liable for any losses that may occur. Investments in the securities market are subject to market risks. Read all the related documents carefully before investing. Registration granted by SEBI, membership of BASL & certification from NISM in no way guarantee the performance of the intermediary or provide any assurance of returns to investors.
FAQ
What are regional FMCG brands?
Regional FMCG brands are companies that operate primarily within specific geographic areas, offering products tailored to local tastes and preferences. Examples include Balaji Wafers and MTR Foods.
How did regional FMCG brands grow during the pandemic?
Supply chain disruptions faced by larger corporations allowed regional brands to step in. Their proximity to local markets enabled faster replenishment, competitive pricing, and alignment with local consumer needs.
What challenges are regional FMCG brands facing in 2023-24?
Key challenges include economic slowdown, operational scalability issues, commodity price fluctuations, and increased competition from larger national players.
How are larger FMCG companies responding to regional competition?
National players are leveraging economies of scale, investing in marketing, and deploying aggressive strategies to regain market share.
What strategies can regional FMCG brands adopt to sustain growth?
To sustain growth, regional brands can focus on enhancing supply chain resilience, adopting sustainable pricing models, and continuing to innovate products based on localized consumer preferences.
How does the economic slowdown affect FMCG consumption?
Economic slowdown reduces consumer purchasing power, leading to a shift toward value-for-money products and a contraction in overall sales volume.
The Indian telecom giant Vodafone Idea made headlines recently as its share price surged by 17%, hitting the upper circuit limit on Monday, January 20, 2025. The surge was fueled by speculation of a possible AGR (Adjusted Gross Revenue) dues waiver, boosting optimism among investors and the market. Source: CNBCTV18
However, the stock opened almost flat on Tuesday and dropped over 4% during morning trading. This came after the company issued a clarification late Monday, stating it had not received any communication from the government regarding an AGR dues waiver. Source: Mint
On January 20, 2025, the stock exchange asked Vodafone Idea Ltd to clarify a media report titled “Vodafone Idea, Airtel shares in focus as govt plans AGR dues waiver.” In response, Vodafone Idea stated after market hours, referring to a January 18, 2025, article titled “In Big Relief to Telcos, Govt weighs over ₹1 lakh crore AGR dues waiver.” Source: Mint
What Triggered the Surge?
Speculation about a possible AGR dues waiver by the Indian government fueled Vodafone Idea’s share price surge. AGR dues have been a significant challenge for telecom operators in India, with companies like Vodafone Idea struggling with substantial payment obligations. A possible relief or restructuring of these dues could significantly ease the financial burden on the company.
According to a TRAI report, telecom operators’ gross revenue rose to ₹91,426 crore in the July–September 2024 Quarter, up 10.5% year-over-year, driven by tariff hikes. The government calculates levies based on adjusted gross revenue (AGR), which grew 13.11% year-over-year to ₹75,310 crore. Vodafone Idea’s AGR increased by 4.39%, from ₹7,507.65 crore to ₹7,836.98 crore.
Possible AGR Relief Expected in Union Budget 2025
Reports suggest that the government may announce relief measures for telecom companies as early as February 1, during the Union Budget 2025. The proposed relief includes a partial waiver of Adjusted Gross Revenue (AGR) dues, potentially reducing liabilities for Bharti Airtel and Vodafone Idea by ₹38,000 crore and ₹52,000 crore, respectively.
The government is reportedly considering waiving penalties and interest components of AGR dues. This move comes after telecom operators, including Vodafone Idea and Bharti Airtel, sought relief following the Supreme Court’s September 2024 rejection of a curative plea to reassess AGR demands. Source: CNBCTV18
AGR Dues Breakdown
Vodafone Idea: Estimated AGR dues of around ₹80,000 crore
Bharti Airtel: Estimated AGR dues of approximately ₹42,000 crore
According to IIFL Securities, Vodafone Idea’s stock could see a short-term boost if the relief is announced. After the potential AGR waiver, The brokerage estimated a fair value of ₹10 per share for Vodafone Idea.
Understanding AGR and Its Impact
Adjusted Gross Revenue (AGR) refers to telecom operators’ revenue from telecom services. In 2019, the Supreme Court of India ruled that telecom companies must include non-core revenue in their AGR calculations, leading to massive liabilities for companies like Vodafone Idea.
While the company has made partial payments, the outstanding amount remains substantial. This liability has weighed heavily on its financial health, affecting its ability to invest in network expansion and other critical areas.
Why Is an AGR Waiver Crucial for Vodafone Idea?
Vodafone Idea has been walking a tightrope, juggling massive debts, intense competition, and dwindling market share. Here’s why an AGR waiver could be a game-changer:
Debt Reduction
An AGR waiver would provide much-needed relief, reducing the debt burden and allowing Vodafone Idea to focus on operational improvements.
Increased Investor Confidence
Positive developments like an AGR waiver can restore investor confidence, attract fresh capital, and improve the company’s stock performance.
Operational Stability:
Reduced financial pressure would enable Vodafone Idea to invest in upgrading its network infrastructure, enhancing service quality, and competing more effectively with rivals.
Market Reaction and Investor Sentiment
The market’s response to the potential AGR waiver buzz was positive. Vodafone Idea’s stock hit the 17% upper circuit, reflecting strong investor interest. Trading volumes also spiked, indicating heightened activity and optimism among market participants.
While the prospect of an AGR waiver is promising, its implementation remains uncertain. Investors are advised to exercise caution and monitor further developments closely.
Challenges Ahead for Vodafone Idea
Despite the positive momentum, Vodafone Idea faces several challenges that could impact its recovery:
Stiff Competition:
Reliance Jio and Bharti Airtel continue to dominate the telecom market, offering competitive pricing and superior service quality.
Capital Requirements:
Even with an AGR waiver, Vodafone Idea will need significant capital infusion to invest in 5G infrastructure and improve its network capabilities.
Regulatory Hurdles
The company’s future depends heavily on favorable regulatory decisions, including spectrum pricing and other policy measures.
Analysts Perspectives
While the recent surge in Vodafone Idea’s share price has grabbed attention, analysts remain divided on its long-term prospects. According to a CNBC TV18 report, some experts believe the stock’s fair value is below its Follow-on Public Offering (FPO) price, highlighting concerns about its financial stability and growth potential.
On the other hand, optimists argue that strategic initiatives, coupled with potential government support, could pave the way for a turnaround. The company’s ongoing efforts to raise funds through equity and debt are steps in the right direction.
What Lies Ahead?
The road ahead for Vodafone Idea is fraught with uncertainties, but there are reasons for cautious optimism:
Government Support:
As evidenced by past relief measures, the government’s willingness to support the telecom sector bodes well for Vodafone Idea.
Fundraising Plans:
The company’s efforts to secure fresh capital will be crucial in addressing its financial woes and funding future growth.
Strategic Partnerships:
Collaborations with global technology and telecom players could provide the expertise and resources needed to strengthen Vodafone Idea’s position.
Conclusion
Vodafone Idea’s recent share price rally underscores the impact of positive market sentiment and speculation. While the potential AGR waiver buzz has reignited hope for the company’s revival, it’s essential to approach the situation with a balanced perspective. The telecom operator’s long-term success depends on favorable policy decisions, strategic initiatives, and robust execution.
Disclaimer Note: The securities quoted, if any, are for illustration only and are not recommendatory. This article is for education purposes only and shall not be considered as a recommendation or investment advice by Equentis – Research & Ranking. We will not be liable for any losses that may occur. Investments in the securities market are subject to market risks. Read all the related documents carefully before investing. Registration granted by SEBI, membership of BASL & certification from NISM in no way guarantee the performance of the intermediary or provide any assurance of returns to investors.
Families can find it challenging to manage their finances during difficult times. To help, the Securities and Exchange Board of India (SEBI) has updated its nominee rules, making it easier for families to access and transfer assets when a loved one cannot manage them.
SEBI has introduced new guidelines to simplify the nomination process for mutual fund folios and demat accounts. These updated rules, effective from March 1, 2025, aim to make asset transfers easier, particularly in case of an investor’s illness or death. Source: CNBCTV18.com
Announced on January 10, these rules are designed to offer families a financial safety net. These new rules let nominees handle the accounts of physically incapacitated investors without needing a power of attorney (POA). However, experts caution that there may still be some challenges and limitations. Source: Mint
Let’s dive into what these new nominee rules mean for investors and their families.
The Need for Revamping Nominee Rules
Streamlining Succession Processes Previously, families often faced procedural delays and legal hurdles when accessing investments held by an incapacitated individual. This was primarily due to incomplete or unclear nominee designations, which could lead to disputes and complications.
Key Features of SEBI’s New Guidelines
Objective of the New Rules
Designed to assist mutual fund and demat account holders in managing investments during sudden illness or death.
Nominee Authorization
Single-holding investors can now authorize one nominee (excluding minors) to manage their accounts if they are physically incapacitated but mentally sound. SEBI now requires all investors to choose a nominee or formally opt out by submitting a declaration.
Up to 10 Nominees Allowed
SEBI has increased the number of nominees an investor can assign to their account or folio. Previously, the limit was three nominees, but now investors can nominate up to 10 individuals. Additionally, investors can edit or remove these nominations at any time.
Digitized and Simplified Process
Investors can register their nominees online, reducing paperwork and streamlining the process. This digital-first approach ensures accessibility and convenience for investors.
Comprehensive Disclosure Requirements
Investors must provide a PAN, driving license number, or the last four digits of their Aadhaar number. They must also share the nominee’s complete contact details, including address, email, phone number, relationship to the investor, and date of birth (if the nominee is a minor).
Asset Transmission Process
Only two documents are needed to transfer assets to registered nominees: a self-attested copy of the deceased investor’s death certificate and the nominee’s updated or reaffirmed KYC details. SEBI has clarified that no extra paperwork, such as affidavits, indemnities, undertakings, or notarization, will be needed.
Regulations for Joint Holdings
For joint accounts, SEBI requires clear instructions on the succession process. If no nominee is declared, the surviving account holder will take priority.
Restricted Access
Nominees cannot update critical details like bank accounts or contact information.
Redemption Proceeds
Funds from redemptions will be credited directly to the investor’s linked bank account.
Exclusions
These guidelines do not cover investors in critical conditions, such as those in comas or on ventilators.
Risk of Misuse: Nominees redeeming for incapacitated investors may misuse funds. Policing this activity poses significant challenges for SEBI, depository participants (DPs), and asset management companies (AMCs).
Increased Complaints: There could be a rise in disputes filed through SEBI’s Complaint Redressal System (SCORES). Online dispute resolution (ODR) could become a necessary alternative.
Issues with Redemption Safeguards
As per SEBI rules, redemption proceeds are credited to the investor’s linked bank account. If the nominee is a joint account holder, this safeguard offers limited protection against misuse.
Banks require a power of attorney (POA) or specific mandates to allow nominees access to funds, per RBI guidelines.
Discrepancies between SEBI and RBI rules can leave families without access to emergency funds.
The new circular addresses many concerns but does not address what happens if an investor becomes incapacitated and unable to make legal decisions. In such situations, the existing rules require a guardianship certificate from the courts, which can be complex and time-consuming. However, this requirement helps ensure the investor’s funds are safeguarded and not misused.
What Is Needed
Experts believe the issue will remain unresolved unless the RBI aligns its stance with SEBI. They suggest an aggregator regulator to bridge the gap between regulatory bodies like SEBI, RBI, IRDAI, PFRDA, CERT-In, and MeITY. They also urged the Ministry of Finance to form a Joint Parliamentary Committee (JPC) to recommend changes whenever laws are amended, ensuring better coordination and consistency.
Benefits for Families of the Incapacitated
Faster Access to Assets
One of the most significant advantages of the new rules is the reduced time taken to access assets. By ensuring nominees are registered, and records are updated, families can bypass lengthy legal proceeding.s
Minimized Disputes
The comprehensive disclosure requirements eliminate potential ambiguities, reducing the likelihood of disputes among family members or legal heirs.
Empowering Investors
The process encourages investors to take a proactive role in estate planning. By designating nominees early, they can ensure their assets are transferred according to their wishes.
What Investors Should Know
While SEBI’s revamped rules offer numerous benefits, they also bring certain challenges that investors should be mindful of:
Ensuring Nominee Awareness
Investors need to inform their nominees about their roles and responsibilities. Without this communication, nominees may face difficulties when attempting to claim assets.
Regular Updates Are Crucial
Family dynamics can change over time due to events like marriage, divorce, or births. Investors should periodically review and update their nominee details to reflect these changes.
Potential for Overlooking Legal Heirs
While nominees are custodians of the assets, they may not always be the legal heirs. Investors should consider drafting a will to clarify their intentions and avoid conflicts.
How Financial Institutions Are Adapting
Enhanced Support for Investors
Banks, mutual fund companies, and brokerage firms are updating their processes to comply with SEBI’s guidelines. Many now offer online tools to help investors register and manage nominee details.
Educational Initiatives
Financial institutions are conducting workshops and webinars to spread awareness about the importance of nominee registration. These initiatives aim to empower investors with the knowledge to make informed decisions.
Case Study: A Family’s Journey with the New Rules
Let’s consider the story of Mr. Ramesh, a retired government employee. He invested in mutual funds and shares but had never nominated anyone. After suffering a stroke, his family struggled to access his investments. However, with SEBI’s revamped rules, they could quickly update his records and register his wife as the nominee. This allowed seamless access to his assets, providing financial stability during a challenging time.
Encouraging Financial Literacy
Promoting Proactive Estate Planning SEBI’s rules remind investors of the importance of financial planning and promote a culture of preparedness by encouraging them to nominate beneficiaries.
Bridging Gaps in Awareness Despite the availability of nominee registration, many investors remain unaware of its importance. SEBI’s efforts are a step towards closing this gap, ensuring more families are protected.
Making the Most of the New Rules
Act Early: Register a nominee as soon as you start investing. This ensures your family’s financial security in case of unforeseen events.
Keep Details Updated: Review and update nominee information regularly to reflect changes in family structure.
Communicate with Nominees: Inform your nominees about their designation and provide them with relevant documents.
Consider a Will: A will can complement nominee registration, providing additional clarity and legal backing.
Leverage Digital Tools: Use online platforms offered by financial institutions to simplify nominee registration and management.
Conclusion
SEBI’s revamped nominee rules are a significant step towards safeguarding the interests of investors and their families. These regulations ensure timely financial support for families during challenging times by simplifying the asset transfer process and reducing legal hurdles. However, the onus is on investors to proactively register nominees, stay informed, and regularly update their records. With these steps, they can ensure their loved ones are protected and supported when it matters the most.
Disclaimer Note: The securities quoted, if any, are for illustration only and are not recommendatory. This article is for education purposes only and shall not be considered as a recommendation or investment advice by Equentis – Research & Ranking. We will not be liable for any losses that may occur. Investments in the securities market are subject to market risks. Read all the related documents carefully before investing. Registration granted by SEBI, membership of BASL & certification from NISM in no way guarantee the performance of the intermediary or provide any assurance of returns to investors.
FAQs
Can nominees manage accounts for incapacitated investors?
Yes. SEBI allows nominees to operate accounts if the investor is physically incapacitated but mentally capable. This ensures continued access to funds for essential needs.
How do these rules simplify matters for families?
The rules streamline the process of accessing funds for the care and well-being of incapacitated family members. This reduces delays and bureaucratic hurdles, allowing families to focus on their loved one’s care.
What if the incapacitated investor cannot make decisions?
In cases where the investor lacks mental capacity, the nominee’s role is limited. Legal avenues, such as guardianship or court orders, would be necessary to manage the account.
How can families ensure smooth access to funds?
Families should ensure clear nomination details are registered with the financial institution. It’s crucial to keep these details updated and understand the specific procedures for accessing funds in case of incapacity.
The inauguration of Donald Trump as the 47th President of the United States has set the stage for significant economic and policy shifts. As the world watches, markets have already started responding, and Indian professionals in the US are bracing themselves for potential changes in trade, regulation, and immigration policies. But what does this mean for global markets, especially India’s economy? And how will Trump’s policy agenda impact Indian professionals working in the US?
Market Reactions to Trump’s Inauguration
Indian stock markets opened on a positive note ahead of Trump’s swearing-in ceremony. The Nifty 50 index opened at 23,290.40 points, gaining 87.20 points (0.38%), while the BSE Sensex surged by 359.20 points (0.47%), opening at 76,978.53. Market experts suggest that investors are keenly observing Trump’s first executive orders, which will provide insights into his economic agenda for the upcoming term.
While sectors such as Nifty Auto, FMCG, and Metal faced declines, others gained traction. Nifty Private Bank surged by 1%, with Kotak Mahindra Bank leading the rally by jumping 7.5%, supported by a 10% rise in quarterly profit. Similarly, Wipro rose 7% after exceeding third-quarter revenue and profit expectations.
Asian markets
have also shown optimism, driven by hopes of a US-China trade deal and the Israel-Hamas ceasefire being implemented. The Nifty smallcaps and midcaps indices rose by 0.3% and 0.6%, respectively, indicating a broader market uplift. Asian equities climbed in early Monday trading, tracking US peers following a positive conversation between Donald Trump and Chinese leader Xi Jinping ahead of the US President-elect’s inauguration.
Shares in Australia, Japan, and South Korea gained, while a gauge of US-listed Chinese shares jumped 3.2% on Friday as Trump described the talk between the two leaders as “very good.” US futures were slightly lower in Asian trading with Wall Street closed on Monday due to a holiday. Source: The Tribune
Trump’s Economic Policy Agenda
Trade and Tariffs
Trump’s “America First” policy emphasizes protectionism, focusing on domestic job creation and reducing trade deficits. His proposed tariffs include universal duties ranging from 10% to 20% on all imports, with up to 60% tariffs on Chinese goods, and 25% tariffs on imports from Mexico and Canada. These measures are expected to have far-reaching consequences:
Increased inflation and a stronger US dollar make exports less competitive.
Pressure on global supply chains, especially in the automotive and technology sectors.
Potential market volatility as investors weigh long-term consequences against short-term gains.
Analysts expect a phased implementation to allow businesses to adjust, though concerns remain regarding the speed and scale of execution.
Regulatory Changes: Energy and Financial Sectors
One of the key focus areas of the new administration is deregulation, which is likely to impact both the financial and energy sectors significantly.
Financial sector: Trump is expected to roll back stringent regulations imposed under the previous administration. This move is anticipated to benefit banks by reducing compliance costs and increasing profitability. Investor optimism has already rallied financial stocks, reflecting positive sentiment around the sector’s growth potential.
Energy Sector: Trump’s policies may include easing restrictions on oil and gas exploration on federal lands, lifting a pause on liquified natural gas (LNG) exports, and scaling back environmental regulations. These measures could make operations more cost-effective for energy firms, boosting US energy exports. However, long-term sustainability concerns remain.
Cryptocurrency Market: The cryptocurrency market is closely watching Trump’s administration. There are expectations that executive orders may introduce crypto-friendly policies, providing much-needed regulatory clarity. If implemented effectively, this could lead to increased investment in the crypto market, though some experts remain cautious about speculative volatility. Source: Business Insider
Immigration Policies and Impact on Indian Professionals
A major area of concern for Indian professionals in the US is the anticipated shift in immigration policies. Key areas of impact include:
H1B visa policies: Potential tightening of eligibility criteria and prolonged processing times.
Green card approvals: Increased uncertainty surrounding backlog reduction and priority allocations.
Work visa extensions: Stricter compliance checks may add challenges for existing visa holders.
With growing uncertainty, many Indian professionals are exploring alternative destinations such as Europe and Canada. Despite concerns, industry experts suggest that Indian IT firms have been proactively strengthening their local hiring strategies to minimize risks associated with policy changes. In the long run, while challenges exist, the Indian IT sector remains confident in adapting to the evolving landscape. Source: Economic Times
Cryptocurrency: The Rise of $TRUMP Coin
In an unexpected move, Trump has ventured into the cryptocurrency market by launching the $TRUMP coin. The digital asset debuted with a market capitalization of $9 billion, peaking at $15 billion, with the price surging over 300% within days of its release. Currently valued at around $46, the meme coin is hosted on the Solana blockchain, with an initial supply of 200 million tokens is expected to expand to 1 billion over the next three years. While excitement is high, market analysts remain cautious about its long-term viability. Source: Forbes
Looking Ahead: Challenges and Opportunities
As Trump’s policies take shape, their impact on the global and domestic markets will become clearer. Investors are closely watching trade, immigration, and financial regulation changes to assess long-term economic prospects.
For Indian professionals in the US, the evolving policy environment presents challenges and opportunities. While sectors such as technology and finance may find new avenues for growth, concerns over stricter immigration policies persist. The road ahead remains uncertain, but adaptability and strategic planning will be key to navigating these changes.
Disclaimer Note: The securities quoted, if any, are for illustration only and are not recommendatory. This article is for education purposes only and shall not be considered as a recommendation or investment advice by Equentis – Research & Ranking. We will not be liable for any losses that may occur. Investments in the securities market are subject to market risks. Read all the related documents carefully before investing. Registration granted by SEBI, membership of BASL & certification from NISM in no way guarantee the performance of the intermediary or provide any assurance of returns to investors.
You must remember the iconic ads featuring an elephant effortlessly balancing a towering stack of chairs or the heartwarming sight of a grandfather fixing his grandson’s broken toy. These weren’t just commercials—they were memories that became part of our childhood and DIY adventures.
But did you know behind these is the remarkable journey of a man who started his career as a peon and revolutionized adhesives? Replacing traditional ingredients with innovation, he created products living in every carpenter’s toolbox, engineer’s blueprint, artisan’s workshop, and household across 72 countries. This is the story of how strong emotional and practical bonds built an adhesive empire of ₹1,48,712 crores.
Curious to know how it all began? Read on…
From Legal Briefs to Timber Yards
Born in 1925 in Mahua, Gujarat, Balvant Parekh’s path wasn’t paved with legal briefs. Despite a law degree, his heart yearned for something more.
The Quit India Movement’s spirit of social activism inspired him to leave his studies temporarily.
When he returned to Mumbai, life was tough. Struggling to find his footing, he took on various odd jobs. From working at a printing press to serving as a peon at a timber company, Parekh was no stranger to hard work.
He also ventured into importing bicycles, areca nuts, and paper dyes from the West, steadily building a reputation in trade. But it was in the timber yard that he finally found his calling.
Woodworking, Making Life Easy
While surrounded by the scent of sawdust and the rhythmic sound of carpenters at work, Parekh noticed the challenges they faced with traditional adhesives.
The messy, time-consuming process of combining wood with homemade glues deeply troubled him.
Determined to make life easier for these artisans, he envisioned creating an adhesive that would transform the woodworking industry across India.
A Brand From Local to National
In 1959, with his brother by his side, Parekh co-founded Pidilite Industries and launched its first product—Fevicol, a white synthetic resin glue designed for woodworking.
The product was an instant hit, revolutionizing how people thought about adhesives.
In 1963, the company opened its first manufacturing plant in Kondivita, Mumbai, which would remain its headquarters for years to come.
As Fevicol’s popularity grew, so did Pidilite’s reputation as a maker of high-quality, reliable adhesives. The word spread quickly: Fevicol wasn’t just another glue but a symbol of strength and trust.In 1963, the company opened its first manufacturing plant in Kondivita, Mumbai, which would remain its headquarters for years.
Meteoric Rise
Traditional methods and homemade concoctions dominated the adhesive market in India, and the idea of synthetic glue was foreign to many.
However, Fevicol’s superior bonding strength and ease of use quickly gained traction, particularly among carpenters and furniture makers.
With no major competitors, Fevicol rapidly established itself as the go-to product for anyone needing strong, reliable adhesives.
That Stuck Like Magic
Pidilite understood that a superior product wasn’t enough in a crowded market. They needed to form an emotional connection with their customers to succeed.
Remember the iconic “bus” commercial? Passengers defy gravity by holding onto a speeding bus held together by Fevicol. These campaigns subtly conveyed the core message: Fevicol was an invisible force holding everything together with unwavering strength.
Another classic showcased a fish unable to escape a Fevicol-coated wooden box – a simple yet powerful metaphor for its strength.
Over the years, Fevicol has blended cultural nuances with humor, making its ads not just about glue but about human connections and resilience.
Beyond Adhesives
As the years passed, Pidilite’s success with Fevicol strengthened its resolve to innovate further.
The company ventured into new categories like waterproofing with Dr. Fixit and arts and crafts with Fevicryl.
These products were designed to meet the needs of industries and cater to consumers’ evolving tastes.
Today, Pidilite’s diverse product range extends from industrial adhesives to DIY art supplies, creating a broad footprint across multiple sectors.
In the Face of Challenges
Despite its meteoric rise, Pidilite’s journey to success was not without obstacles.
The company faced stiff competition from global players and dealt with unpredictable fluctuations in raw material prices.
Yet, Pidilite demonstrated remarkable resilience at every turn, overcoming challenges with strategic innovation and adaptability.
To Digital and Pandemic Shifts
When the digital revolution began transforming customer interactions, Pidilite swiftly embraced e-commerce and social media to broaden its reach.
During the pandemic, as businesses worldwide struggled, the company adapted by launching DIY kits and positioning itself as a trusted provider of long-lasting solutions.
This ability to pivot and maintain strong connections with its customers successfully helped Pidilite navigate the crisis.
Relationships, Not Just Products
At the heart of Pidilite’s success was a commitment to its customers. While Fevicol might have been the company’s flagship product, it worked tirelessly to foster relationships with its core customer base: carpenters, masons, and artisans.
Training workshops, loyalty initiatives, and personalized engagement all contributed to building a sense of community.
For Pidilite, it was never just about selling a product but about becoming a trusted partner in their customers’ businesses.
Behind The Success
Today, Pidilite Industries operates in two primary segments: the Consumer and Bazaar (B2C) and Industrial (B2B). The Consumer and bazaar segment contributes 84% of the company’s revenue.
It includes a broad spectrum of products: adhesives and sealants (55%), construction chemicals (20%), and arts and crafts (9%).
Meanwhile, the industrial segment, which accounts for the remaining 15%, covers industrial adhesives, resins, and pigments.
Bonds, Shaping the Future
Looking ahead, Pidilite remains committed to its core principles of innovation, quality, and customer relationships.
With a steady focus on sustainable and eco-friendly solutions, Pidilite is poised to continue its legacy of creating products that simplify lives and build lasting connections.
The company will continue to invest in new factories and digital, route-to-market, and supply chain capabilities. Capital expenditure (capex) for FY25 will be around Rs 400-800 crore, which will be used to establish 3-5 new factories.
A Story of People and Purpose
In many ways, Pidilite’s story is more than just the story of a brand. It’s about the people behind it, their struggles, their dreams, and their unwavering belief in the power of creating something that sticks, not just in the market but in the hearts of those who use it.
Pidilite’s journey continues, and its future looks just as strong and resilient as the bonds it creates.
As Budget 2025 approaches, all eyes are on Finance Minister Nirmala Sitharaman to unveil measures that will shape the economic landscape of India. Citizens, businesses, and economists are keen to see how the government addresses critical issues like GDP growth, infrastructure, taxation, and manufacturing.
This will mark Finance Minister Nirmala Sitharaman’s second full-fledged Budget under Modi 3.0 and her eighth Budget presentation in Parliament.
Based on past conventions, the Finance Minister is anticipated to deliver the Union Budget 2025 speech at 11 a.m. on February 1, 2025. However, the Finance Ministry has yet to confirm this date officially.
Notably, she concluded Pre-Budget consultations with various stakeholders, unions, and other representatives on January 6 before commencing work on the Budget for 2025-26. Source: Mint
Stock Markets to Remain Open on Budget Day
Unlike regular weekends, the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE) will remain operational on Saturday, February 1, 2025, due to the Union Budget 2025-26 presentation.
Typically, Indian stock markets remain closed on Saturdays and Sundays, but this special session underscores the significance of Budget Day for financial markets.
Based on expert opinions and key trends, here’s a breakdown of what you can expect from this year’s budget.
Focus on Economic Growth
India has demonstrated resilience in the face of global challenges, but sustaining robust GDP growth remains a priority. The government is likely to introduce policies that stimulate investment and consumption. Infrastructure continues to be a cornerstone of economic growth.
The middle class anticipates relief in personal income taxes to boost disposable incomes. Changes in the Goods and Services Tax (GST) structure are also anticipated.
Budget 2025 may see enhanced allocations to:
GDP Growth Revival
Investment Incentives: Expect schemes to attract private and foreign investments in manufacturing, technology, and green energy.
Boosting MSMEs: Special focus might be placed on micro, small, and medium enterprises (MSMEs) to aid recovery and growth.
Push for Infrastructure Development
Road and Rail Networks: Expanding national highways and modernizing railways to improve logistics. Urban Infrastructure: More funds for smart cities and metro projects to meet urban demands.
Let’s explore the key sectors where government support and reforms are anticipated to be a major focus in Budget 2025.
Strong Support for Startups Anticipated
Industry experts expect the government to maintain robust support for India’s thriving startup ecosystem in the Union Budget 2025. They anticipate focused measures, such as enhanced financial support mechanisms and simplified regulatory frameworks, to empower the sector further.
Section 80-IAC of the Income Tax Act allows eligible start-ups to claim a 100% tax deduction on profits for any three consecutive years within a ten-year window, provided the start-up is incorporated between April 1, 2016, and March 31, 2025. Experts believe that to further boost start-up growth in India, the incorporation deadline for eligible start-ups should be extended.
Empowering Taxpayers with Fair Reforms
According to industry experts, India’s tax reforms should empower the middle class and enhance compliance. Reducing the average tax rate to 10% for incomes up to ₹20 lakh can lower financial burdens, boost savings, and drive economic growth.
Additionally, synchronizing direct and indirect taxes—such as income tax and GST—can simplify taxation. A transparent, fair, and rewarding tax system will ease financial pressure and strengthen the economy.
Will Tax Cuts Be on the Agenda?
The Budget 2025 is expected to deliver tax relief while balancing revenue needs. Taxpayers anticipate a higher rebate for lower-income groups and an increased basic exemption limit under both tax regimes to ease inflation pressures. Enhancing presumptive taxation limits for businesses and professionals under Sections 44AD and 44ADA is also a key expectation.
Homebuyers hope for higher interest deduction limits on housing loans, with suggestions to raise the cap under Section 24(b) from ₹2 lakh to ₹3 lakh. Simplifying faceless appeals and TDS for non-residents remains crucial. Source: Economic Times
Boosting Real Estate Growth
Experts believe raising the long-stagnant tax exemption limit on home loan interest can reduce homebuyers’ financial burden and improve affordability. Granting industry status to real estate will help developers access structured financing and lower borrowing costs. Simplifying GST rates and input tax credit mechanisms will further enhance affordability. Policies for new greenfield cities and upgrading urban infrastructure are crucial to meet rising demand and ensure sustainable growth.
Strengthening Online Education
The Union Budget 2025-2026 presents a chance to boost India’s online education system, supporting the NEP 2020 goal of allocating 6% of the GDP to education.
Experts expect the budget to focus on creating standardized quality frameworks for online programs and improving institutions’ digital infrastructure. Additionally, initiatives to bridge information gaps, offering career counseling and digital literacy programs are also anticipated. These steps will help students make informed decisions and enhance access to quality education.
Boosting Financial Education
The Union Budget 2025-26 offers a key opportunity to enhance India’s financial education through edu-fintech partnerships. The budget is expected to introduce initiatives supporting digital financial literacy, including tax incentives for platforms offering specialized financial education and skill development programs. These measures will help improve financial knowledge and empower individuals to make informed financial decisions.
Relief Measures for Study-Abroad Aspirants is Expected
The Union Budget 2025-26 should address the rising costs faced by Indian students pursuing international education due to global inflation. Key measures could include reducing education loan interest rates and expanding financial aid for study-abroad aspirants.
Encouraging collaborations with foreign universities and simplifying procedures for establishing Indian campuses can also boost opportunities. According to experts, these steps will make global education more accessible, empowering Indian students to gain international exposure and contribute to India’s global presence in education.
Focus on Women, Youth, Farmers, and the Underprivileged
Industry experts hope for continued focus on infrastructure, fiscal prudence, and support for women, youth, farmers, and the underprivileged through skilling, welfare, and financial assistance. Key areas to address include boosting private consumption, reviewing income tax slabs, and reassessing interest rates for EMI relief. These measures can boost industries like consumer durables, encourage private investment, and promote innovation, PLIs, and sustainable growth for inclusive development.
What the Tourism Industry Wants
The tourism industry hopes for key measures to support growth ahead of the Union Budget. This includes granting industry status to hospitality, allowing GST credit for hotel construction, and rationalizing GST rates to reduce accommodation costs. These steps would boost domestic and inbound tourism.
The industry also seeks funding for an international campaign under the Incredible India initiative. Additionally, support for the growing homestay sector and resolving GST issues for Online Travel Agents (OTAs) are crucial for streamlining operations and reducing costs.
Budget 2025 Expectations: Higher Budget for Indian Railways?
The upcoming Budget may allocate 15-20% more capital expenditure for Indian Railways in FY26, increasing the total to over Rs 3 lakh crore from Rs 2.65 lakh crore this year. The focus will be improving infrastructure, including commissioning upgraded railway stations, launching modern trains, and decongesting the track network. This boost in funding aims to enhance the efficiency and modernization of the national transporter’s operations.
Will Railways Get Bigger Allocation for Passenger Safety?
Indian Railways is at a crucial point, needing both modernization and urgent safety improvements. The tragic Odisha rail accident in 2023 and multiple incidents in 2024 highlight the ongoing safety concerns. With over 70 derailments and several fatal accidents, there is a growing demand for greater investments in safety measures. The upcoming budget may address these issues, prioritizing passenger safety with a larger railway infrastructure and upgrade allocation.
Boost for Preventive Healthcare in India
India’s preventive healthcare sector holds significant potential, especially nutraceuticals (Nutraceuticals are products derived from food sources that provide health benefits beyond basic nutrition). To unlock this, the Union Budget should focus on reducing the 18% GST on nutraceuticals to 5% for better affordability.
Additionally, 50% capital subsidies for certified manufacturing units in smaller cities would encourage local production. Subsidies for digitization and digital payments are crucial for enhancing digital infrastructure.
Retail Sector’s Expectations from Sitharaman
The retail sector looks forward to key policy changes in the Union Budget. Stakeholders expect reduced interest rates to improve access to financing. The food & beverage (F&B) segment hopes to be recognized as an essential service with utility subsidies and land costs.
What the Insurance Sector Wants
Industry experts see the Union Budget as a crucial opportunity for the government to enhance the life insurance sector. They suggest raising tax deduction limits under Section 80C for life insurance premiums and establishing separate limits for term insurance and pension policies. Additionally, they advocate for mandatory basic term life insurance for formal employees, similar to the Employees’ Provident Fund (EPF). These measures would foster financial security and contribute to India’s long-term socio-economic development.
Challenges Ahead
While the expectations are high, the government faces the challenge of balancing fiscal discipline with growth-oriented spending.
Managing Fiscal Deficit: Efforts will be needed to keep the fiscal deficit within acceptable limits while funding key initiatives.
Global Economic Uncertainty: India must navigate global economic pressures, including inflation and trade tensions.
Budget 2025 may need to be transformative, addressing critical areas like economic growth, taxation, infrastructure, and sustainability. With its potential to shape the future of India’s economy, this budget is highly anticipated.
Disclaimer Note: The securities quoted, if any, are for illustration only and are not recommendatory. This article is for education purposes only and shall not be considered as a recommendation or investment advice by Equentis – Research & Ranking. We will not be liable for any losses that may occur. Investments in the securities market are subject to market risks. Read all the related documents carefully before investing. Registration granted by SEBI, membership of BASL & certification from NISM in no way guarantee the performance of the intermediary or provide any assurance of returns to investors.
FAQs
What are the key expectations from the Union Budget 2025?
Taxpayers hope for reduced tax rates and exemptions, while industries seek financial support for growth. The healthcare, agriculture, and education sectors expect increased allocations. There are also calls for reforms in GST and infrastructure development.
How will the Union Budget 2025 affect individual taxpayers?
Taxpayers expect possible reductions in income tax slabs, increased exemptions, and higher rebates to increase disposable income and ease financial burdens.
What does the business community expect from the Budget?
The business sector hopes for lower corporate tax rates, tax incentives for new investments, and measures to improve the ease of doing business, which can stimulate economic growth.
Will the Union Budget 2025 focus on healthcare?
Yes, the healthcare sector anticipates a boost in spending for preventive care, including measures like lower GST on nutraceuticals and digital health initiatives.
How will the budget impact the education sector?
The education sector expects increased funding for infrastructure development, digital learning programs, and reforms to improve the quality, accessibility, and affordability of education.
Reliance Industries Limited (RIL), a titan in India’s corporate landscape, has reported an 11.7% year-on-year increase in net profit for Q3 FY25, taking it to ₹17,394 crore. On the same day, its stock saw an intraday gain of 4.7%, reflecting robust investor sentiment. What’s driving these stellar numbers, and what does this mean for stakeholders?
Let’s look into the sectoral performance and underlying factors fueling this growth, breaking it down step-by-step to clarify this financial update.
The Numbers Speak: A Snapshot of RIL’s Performance
RIL’s consolidated revenue for Q3 stood at ₹2,67,186 crore, registering a year-on-year growth of 7.7%. This was complemented by an all-time high EBITDA of ₹48,003 crore, a 7.8% increase from the corresponding quarter of the previous year. Additionally:
Net Profit: ₹21,930 crore, up 11.7% YoY.
Reliance Retail Revenue: ₹90,333 crore, an 8.8% YoY increase.
Jio Platforms Revenue: ₹38,750 crore, up 19.2% YoY.
Oil-to-Chemicals (O2C) Revenue: ₹149,595 crore, a rise of 6% YoY.
While the O2C segment faced headwinds, RIL’s retail and digital services businesses showed robust growth, contributing significantly to the overall performance.
1. Reliance Retail: Dominance in the Consumer Space
Reliance Retail, RIL’s consumer-facing business, achieved an 8.8% Y-o-Y revenue growth to ₹90,333 crore in Q3 FY25. Sequentially, revenue grew by 18%, driven by productivity improvement initiatives and increased customer engagement during the festive season through new product launches and promotions. Key highlights include:
EBITDA Growth: EBITDA rose by 10% YoY to ₹6,632 crore, with margins improving by 20 basis points to 8.3%.
Store Network Expansion: By the end of the quarter, Reliance Retail’s store count had reached over 19,102, reflecting continued expansion.
B2C Grocery Push: The business saw significant traction in its B2C grocery segment, driven by strong demand and enhanced distribution capabilities.
E-Commerce and Promotions: Platforms like JioMart benefited from higher customer engagement, boosting online sales alongside in-store performance, particularly during the festive period. Source: Economic Tmes
2. Jio Platforms: Leading India’s Digital Revolution
Jio Platforms reported a 19.2% YoY increase in revenue to ₹38,750 crore, with EBITDA growing by 18.8% to ₹16,585 crore. The wireless subscriber base expanded to 482 million, supported by a tariff hike and increasing penetration of high-speed internet services. Key takeaways include:
ARPU (Average Revenue Per User): Improved to ₹181.70 from ₹181.7 in the previous quarter.
5G Rollout: Jio continued to rapidly deploy 5G services, further solidifying its leadership position in the telecom sector.
Digital Content Consumption: Increased data usage per customer boosted revenue.
Segment Revenue for 3Q FY25 increased by 6.0% Y-o-Y to ₹ 149,595 crore ($ 17.5 billion) primarily on account of higher production meant for sale as compared to 3Q FY24 which had planned maintenance and inspection shutdown of major units. EBITDA for 3Q FY25 increased by 2.4% Y-o-Y to ₹ 14,402 crore ($ 1.7 billion) following a strong volume-led growth and higher polymer deltas.:
Operational Efficiencies: Revenue growth was supported by robust domestic demand and product placement.
Diversification: Reliance’s move to explore alternative energy sources, including hydrogen, is expected to provide long-term stability to this segment.
The market’s positive reaction can be attributed to several factors:
Strong Overall Performance: The net profit and EBITDA exceeded analysts’ expectations, reinforcing investor confidence.
Retail and Digital Services Growth: Robust performance in these segments offset weaknesses in the O2C business, signaling diversified revenue streams.
Stock Resilience: RIL shares had been trading around ₹1,200 over the past few months despite a bonus issue in October. On Thursday, before the earnings announcement, the stock closed 1.31% higher at ₹1,268.70 on the BSE. This steady performance, coupled with the earnings beat, likely fueled the intraday surge.
Optimism Around Future Prospects: With ongoing investments in green energy, retail, and digital services, RIL continues to strengthen its position as a multifaceted conglomerate.
Reliance’s focus on clean energy is a long-term growth driver. The company’s investments in hydrogen, solar, and other renewable sources align with global trends and regulatory support for sustainable practices.
2. Retail Business Transformation
Reliance Retail’s continued expansion into Tier 2 and Tier 3 cities, coupled with the integration of offline and online channels, positions it as a dominant player in India’s retail landscape.
3. Jio’s 5G Ambitions
As Jio aggressively rolls out 5G services, it is poised to capture a larger share of India’s burgeoning digital ecosystem, which includes smart devices, IoT, and digital entertainment.
Balance Sheet Insights
RIL’s outstanding debt stood at ₹3.5 lakh crore as of Q3 FY25, reflecting an increase of ₹14,116 crore over the September quarter. Meanwhile, cash and cash equivalents rose by ₹15,089 crore to ₹2.35 lakh crore during the same period. This resulted in a net debt of ₹1.15 lakh crore, marking a decline of ₹973 crore compared to the previous quarter. The company’s net debt-to-EBITDA ratio improved to 0.6 in the December 2024 quarter from 0.66 in the September 2024 quarter. Source: Money Control
Capital Expenditure (Capex)
Capital expenditure (excluding amounts incurred towards spectrum) for the quarter ended December 2024 was ₹32,259 crore. This was slightly higher than the ₹30,102 crore reported in the year-ago period but lower than the ₹34,022 crore spent in the September quarter. The investments reflect RIL’s continued focus on expanding its capabilities across various business segments.
Challenges to Watch
Despite the strong quarterly results, certain risks persist:
Global Economic Uncertainty: Macroeconomic challenges and geopolitical tensions could impact demand and margins.
O2C Segment Volatility: Continued pressure on refining and petrochemical margins may weigh on future performance.
Competition: Rising competition in the telecom and retail sectors could affect growth trajectories.
Conclusion
RIL’s Q3 results underscore the strength of its diversified business model. Retail and digital services drive growth, while the O2C segment faces challenges. The stock’s 4.7% intraday gain reflects strong investor confidence in the company’s strategic direction and future potential.
As RIL continues to evolve, its ability to adapt to changing market dynamics and leverage opportunities in new-age businesses will be crucial.
Disclaimer Note: The securities quoted, if any, are for illustration only and are not recommendatory. This article is for education purposes only and shall not be considered as a recommendation or investment advice by Equentis – Research & Ranking. We will not be liable for any losses that may occur. Investments in the securities market are subject to market risks. Read all the related documents carefully before investing. Registration granted by SEBI, membership of BASL & certification from NISM in no way guarantee the performance of the intermediary or provide any assurance of returns to investors.
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An investment advisory firm is a company that helps investors make decisions about buying and selling securities (like stocks) in exchange for a fee. They can advise clients directly or provide advisory reports and other publications about specific securities, such as high growth stock recommendations. Some firms use both methods, like Research & Ranking, India’s leading stock advisory company, specializing in smart investments and long-term stocks since 2015.
What is the Role of an Investment/Stock Market Advisory Firm in India?
An investment advisory firm is a company that helps investors make decisions about buying and selling securities (like stocks) in exchange for a fee. They can advise clients directly or provide advisory reports and other publications about specific securities, such as high growth stock recommendations. Some firms use both methods, like Research & Ranking, India’s leading stock advisory company, specializing in smart investments and long-term stocks since 2015.
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