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<ul><li>Spencer's is trailing behind <keyword id="964794" type="COMPANY" weightage="20" keywordseo="BigBasket">BigBasket</keyword> in terms of revenue, despite its heavy offline presence.</li><li>Revenue of Spencer’s was 30% less than online grocery delivery startup BigBasket in the financial year 2020.</li><li>BigBasket may record its best financial performance in 2021, whereas Spencer’s has reported a decrease in sales.</li></ul>The year 2020 has been a game changer for India Inc. in many aspects. From shopping to working, everything has taken a digital spin and the debate of ‘online vs offline’ has been getting much stronger. Thirty two-year old Spencer’s Retail, one of the prominent retail chains in India ⁠— owned by RP Sanjiv Goenka group ⁠— reported its annual financial report and it was a fairly decent one. The business was surely affected by the Covid-induced lockdown in the first quarter of fiscal year 2021 (FY21), but was flourishing the rest of the year. Yet, its revenue dipped 7% to ₹2,481 crore and losses widened to ₹163.8 crore. This really got us wondering how the company fares in comparison to other players in the grocery segment -- both online and offline. Online grocers are cumulatively the third largest player in the market behind DMart and <keyword id="58448" type="COMPANY" weightage="20" keywordseo="Reliance-Retail">Reliance Retail</keyword>, according to a report dated June 4 from the broking firm Motilal Oswal. BigBasket is the biggest of that lot. What’s more shocking is the fact that BigBasket, just 10 years old in the market, earns more revenue than Spencer’s. The comparison between BigBasket and Spencer’s may be of apples and oranges, but it is definitely an interesting one. The three-decade-old Spencer’s, which has a strong presence across 191 stores across 42 cities, earned almost 30% less than a decade-old online grocery business BigBasket in FY20. A scan of the last three financial statements (between FY18 to FY20) of the companies, revealed that this gap in revenue is not a new one. This trend is expected to be carried forward in FY21 as well, especially with the sort of growth BigBasket has witnessed last year. Being the biggest player in the online grocery space, the company has doubled its daily deliveries to 3 lakh compared to pre-Covid days. The company claims to have clocked a gross sale of ₹8,000 crore ($1.1 billion) in FY21. Though BigBasket is yet to report its financial statement for FY21, Business Insider has mailed the company seeking more details of their financial performance. It is expected to be the strongest one yet at least in terms of the revenue growth. No wonder, Tata Group was <a href="https://www.businessinsider.in/business/startups/news/tata-tryst-with-e-grocery-starts-with-a-billion-dollar-acquisition-of-bigbasket-heres-why-it-could-be-a-sweet-deal-for-both/articleshow/81478849.cms">compelled</a> to acquire BigBasket in order to pursue its Super App dreams. Spencer’s, on the other hand, has reported receding revenue and widening loss during FY21. Though the company did test out a hybrid model by experimenting with online delivery in partnership with Dunzo and Uber last year, that doesn’t seem to have made much of a difference for the company either. Its revenue from sales (operating revenue) reported a 7% dip to ₹2,428 crore compared to ₹2,644.80 crore reported in FY20. Well, BigBasket is actually much worse than Spencer’s in terms of its losses. The company had been burning cash ever since its inception in 2011 and is nowhere close to profitability. Whereas, Spencer’s had hit profitability in FY19, but went back to reporting a loss soon after. According to stock broking house Motilal Oswal’s latest report on the retail segment, the online grocery segment has grown about 30 times over the last seven to eight years to reach $3 billion. Currently, India has about 154 million transacting households. Of which, 130 million are already using online grocery solutions, creating an addressable market of $293 billion. Historically, the e-grocery segment has garnered a single-digit share of the overall organised grocery market in India, but 2020 brought these online grocery solutions to the forefront as stepping out of the house was no less than a health hazard, due to the pandemic. Not only Spencer’s, but other traditional retail players like DMart and BigBazaar were compelled to take up an omnichannel approach and started taking online mode of ordering in partnerships with logistics and transportation players like Uber, Ola, Dunzo, Rapido and more. Besides this, Reliance’s JioMart expanded its presence from three cities to 200 cities in May 2020 in order to take a<a href="https://www.businessinsider.in/business/ecommerce/news/heres-what-gives-jiomart-an-edge-over-its-competitors-according-to-goldman-sachs/articleshow/79054698.cms"> bigger share</a> of the market. SEE ALSO: <a href="https://www.businessinsider.in/stock-market/news/sona-comstar-ipo-price-gmp-should-you-subscribe/articleshow/83505013.cms">Sona Comstar IPO worth ₹5,550 crore opens today – find out if this EV battery player has enough juice for a long ride</a> <a href="https://www.businessinsider.in/business/news/why-dodla-dairy-has-no-plans-to-expand-beyond-southern-india/articleshow/83503817.cms">Here’s why Dodla Dairy has no plans to expand beyond southern India for at least the next two years even with its IPO</a> <a href="https://www.businessinsider.in/stock-market/news/adani-group-under-sebi-scanner-on-market-manipulation/articleshow/83501698.cms">Gautam Adani loses over $7 billion in net worth after questions over the meteoric rise in group stocks</a>

Did you know? BigBasket makes more revenue than 32-year old Spencer’s Retail

<keyword id="964794" type="COMPANY" weightage="20" keywordseo="BigBasket">BigBasket</keyword>, one of the country's second-most valuable ecommerce firm focused on a specific segment, is all set to get a funding of around Rs 800 crore, or $ 120-million. 
 
Online grocer BigBasket is going to get funding from US-based Sands Capital, International Finance Corporation and Bessemer Venture Partners. 
 
Reportedly, the deal is going to take at least two weeks. Presently, BigBasket's valuation is Rs 2,100 crore, or about $320 million. 
 
Through the latest funding round, it will be able to keep its growing competitors such as Grofers and PepperTap behind. 
 
Recently, BigBasket’s chief executive Hari Menon had said that he expected gross merchandise value of $300 million, or Rs 2,000 crore, for the ongoing financial year ending in March 2016. 
 
BigBasket, which has one-third of its sales from its own brands such as Fresho and BB Royal, ensures delivery of majority of the products as it operates on an inventory-based model. 
 
“We cater to both consumer needs, bulk pre-planned as well as on-demand emergency top-ups, with an inventory-led approach. For bulk orders, we fulfill orders through our warehouses and for one-hour express deliveries, we have set up about 63 'dark stores' around the city," Menon had said. 
 
Apparently, BigBasket handles about 2,700 orders per day.

BigBasket gets bigger, to get Rs 800
cr funding

<ul><li>The e-commerce debut of <keyword id="10926" type="CITY" weightage="20" keywordseo="Reliance">Reliance</keyword>, is being touted by analysts as the real digital powerhouse for the RIL family. </li><li>Having started with a beta launch in December 2019, <keyword id="8506093" type="UNKNOWN" weightage="20" keywordseo="Jiomart">JioMart</keyword> officially rolled out to users across the country in May, 2020. </li><li>JioMart went into a fast expansion mode during the coronavirus lockdown in India and has managed to gain an early mover advantage in the country’s smaller towns.</li></ul>JioMart – <keyword id="3820" type="PERSON" weightage="20" keywordseo="Mukesh-Ambani">Mukesh Ambani</keyword>’s ambitious e-commerce bet has taken off and how! Having started with a beta launch in December 2019, JioMart officially rolled out to users across the country in May, 2020 and it already has a million daily active users, and 2.3 million active users every month, according to a JPMorgan report. The same report said that, JioMart has already crossed BigBasket and Grofers in terms of daily active users and falls behind Swiggy. Business Insider reached out to BigBasket and Grofers for their comments regarding their daily active users, both the players declined to comment. India’s online grocery segment: The players <table style="border-width: initial; border-style: none; width: 468pt; table-layout: fixed;"></colgroup><tbody><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Company </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Launch date </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Presence (no. of cities) </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">App downloads </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Amazon Fresh </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">August, 2019 </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">9 </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">314 million (for Amazon) </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Flipkart Supermart </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">November, 2017 </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">5 </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">361 million (for Flipkart) </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Swiggy Stores </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">February, 2019 </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">30 </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">89 million (for Swiggy) </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">BigBasket </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">October, 2011 </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">26 </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">34 million </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Grofers </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">December, 2013 </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">30 </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">30 million </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">JioMart </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">December, 2019 </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">200+ </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">4 million </td></tr></tbody></table>As of December 8, 2020. Source: JPMorgan While other entrenched players like Big Basket and Grofers, who have been around for much longer, still have 7-8 times more app downloads, the rise of JioMart in the last six months only reflects the speed at which Ambani has tried to push his <keyword id="436047" type="COMPANY" weightage="20" keywordseo="Ecommerce">ecommerce</keyword> dream. Since its launch, in every three downloads of any online groceries app, two of them have been the one from the house of Reliance Industries (RIL). <div type="image" title="Jiomart downloads." msid="79922658" hostid="261"></div> Even the mightiest need to hustle sometimes JioMart in India sees competition from many players who have existed and dominated the Indian e-commerce market for a long time – including the likes of Amazon and Flipkart. And so, as Ambani, Asia’s richest man, threw his hat into this ring, he decided to go all out: both in the big cities of India and beyond. JioMart operates with an <a href="https://www.businessinsider.in/business/ecommerce/news/heres-what-gives-jiomart-an-edge-over-its-competitors-according-to-goldman-sachs/articleshow/79054698.cms">omnichannel</a> flow where it has tied up with kirana stores (mom-and-pop stores) and also uses inventory from Reliance Retail outlets. Ambani’s e-commerce bet made a soft launch in December 2019 in select areas of Thane, Navi Mumbai, and Kalyan. But as the coronavirus lockdown began and the opportunities in e-grocery became more evident, JioMart was quick to act and expanded to over 200 cities. This fast growth across India has given JioMart an early-mover advantage in India’s smaller towns, say analysts at JP Morgan. Given the progress of JioMart in the first year, analysts at JPMorgan peg that Reliance’s e-commerce business may earn an annual revenue of over $59 billion and the net worth may hit $145 billion in the next ten years. A Goldman Sachs report from November 2020 had pegged this omnichannel capability ⁠— using different channels for distribution, both online and offline ⁠— as the reason for JioMart’s growth. “India has 10 million kirana stores, which account for 90% of grocery retail in the country. JioMart has already launched in more than 200 cities, leveraging Reliance Retail’s store network, with kirana partnerships across 20 cities,” said the Goldman Sachs report. JioMart is not just stretching far and wide, it’s also building strength via partnerships and acquisitions Ambani is not just going for geographic expansion but he is also on a spending spree to boost JioMart’s offerings to its customers. According to JPMorgan, JioMart’s stock keeping units (SKU) is only second to Big Basket. However, the comparison didn’t include players like Flipkart, DMart and other new entrants like Swiggy and Zomato. JioMart, with access to the deep pockets of one of the world’s richest man – Mukesh Ambani, has managed to successfully partner up with another of the world’s richest man – Facebook founder Mark Zuckerberg. Facebook pumped in $5.7 billion into Reliance Jio in April 2020, with WhatsApp’s integration with JioMart being a prime focus of the deal. It’s set to be a win-win for both Ambani and Zuckerberg – where Reliance can take advantage of WhatsApp’s 400 million user base to acquire more customers. On the other hand, WhatsApp Pay, Facebook’s debut in the payments segment, will benefit from integrating with JioMart for payments. Another early acquisition made by the company was that of the Mumbai-based Grab-a-Grub. In 2019, Reliance pumped in $15 million for 83% stake in the hyperlocal delivery startup. Reliance has also acquired online pharmacy company <a href="https://www.businessinsider.in/business/startups/news/with-reliance-buying-netmeds-and-pharmeasy-merging-with-medlife-amazon-and-flipkart-are-in-for-a-tougher-competition-than-they-would-like/articleshow/77625512.cms">NetMeds</a>, picked up a stake in online lingerie retailer Zivame, and online furniture retailer <a href="https://www.businessinsider.in/retail/news/reliance-retail-acquires-urban-ladder-for-182-crore-at-a-sixth-of-the-startups-peak-valuation-in-2018/articleshow/79230550.cms">Urban Ladder</a>, all of which could further bolster its e-commerce foothold. The acquisition of Kishore Biyani’s Future Retail for almost ₹25,000 crore also gives JioMart access to BigBazaar stores across the country as well. However, Ambani and Biyani are in a <a href="https://www.businessinsider.in/business/news/amazon-got-an-operation-successful-patient-dead-verdict-lawyers-say-the-delhi-high-court-order-is-actually-a-win-for-kishore-biyani-and-future-group/articleshow/79842995.cms">legal battle with Amazon</a> that has challenged the deal both in India and abroad. SEE ALSO: <a href="https://www.businessinsider.in/business/news/amazon-got-an-operation-successful-patient-dead-verdict-lawyers-say-the-delhi-high-court-order-is-actually-a-win-for-kishore-biyani-and-future-group/articleshow/79842995.cms">Amazon got an “operation successful, patient dead” verdict ⁠— Lawyers say the Delhi High Court order is actually a win for Kishore Biyani and Future Group</a> <a href="https://www.businessinsider.in/finance/banks/news/rbi-warns-people-against-unauthorized-digital-lending-apps-that-promise-quick-loans/articleshow/79919474.cms">India’s central bank warns people against unauthorized digital lending apps that promise quick loans</a>

Mukesh Ambani is taking e-tail by storm⁠ — JioMart already has more daily active users than BigBasket and Grofers

<ul><li>The company is moving in the right direction in terms of growing sales and expected to reach EBITDA breakeven soon</li><li><keyword id="6357120" type="General" weightage="20" keywordseo="paytm" source="Orion">Paytm</keyword> is among the worst performers of 2022 so far as the stock has slipped 53% during the period.</li><li>Analysts at JP Morgan expect the share price to jump significantly by 60% to ₹1,000 per share.</li></ul>While Paytm is still struggling to make profits or even deliver positive returns to its shareholders, a brokerage firm believes that it will soon reach its breakeven with moderate expenses. Analysts at JP Morgan believe sustained improvement in the profit margins in the last two quarters at 35%, have set the stage. In the fourth quarter of last year, its profit margins stood at a healthy 35%. “We believe a sustained improvement in the profit margin contribution at PayTM seen over the last two quarters sets the stage for operating leverage Q2F23 onwards as indirect costs moderate - resulting in a consistent downtrend in adjusted EBITDA loss and an eventual path to breakeven,” said a report by JP Morgan. The company has been making losses for 11 years since its inception, and like most startups its acquisition costs have been high. However, most startup investors concentrate on unit economics — and improving profit margins which shows that its business can yield money, is comforting to its many nervous shareholders. In 2022, the Noida-based fintech company is among the worst stock performers as it slipped 53%. But the tide seems to be turning albeit slowly as per the brokerage firm. After a period of restriction, it reinstated an ‘overweight’ rating on the stock, and sees the share price increase by 60% to ₹1,000 per share. While the lending business is growing gradually, the losses in the segment indicate contained delinquencies in buy now pay later (BNPL) and merchant loans. “Lending business scale up, an increased contribution from devices and credit card sourcing should result in consistent quarterly improvement in contribution profits which should touch near 40% by the fourth quarter of 2023. A reduction in the adjusted EBITDA loss with better cost controls in indirect expenses will be a key fundamental stock driver,” said the report. Paytm also partnered with scheduled commercial banks and NBFCs to offer collateral-free instant loans of up to ₹5 lakh at low-interest rates and also offers a unique daily EMI product customized for small merchants. End of tunnel for high expenses on employee cost Paytm has been spending a large chunk of revenue in hiring professionals and in marketing expenses. Now that most of the roll out of employees is done, the indirect cost of employee hiring should start to moderate from July-September FY23. Reduction in costs is also a key factor in its path to profitability. Most startups end up spending heavily on customer acquisition as well as marketing. But Paytm has gained a market share of 15% in a very crowded market. It is now a recognizable brand – which can now aid its path to profitability. Paytm’s net loss widened by over 70% to ₹763 crore as expenses ate into its topline growth in Jan-Mar quarter 2022. However, not all brokerages share JP Morgan’s enthusiasm for the stock. “The business trajectory is admirable, but it’s still a long way to go for Paytm to turn profitable,” said YES Securities after March quarter earnings — and maintained its ‘reduce’ rating with a target price of ₹580 per share. <div type="image" title="paytm (1)" height="900" width="1200" msid="92054936" hostid="261"></div> SEE ALSO: <a target="_blank" class="c-link c-message_attachment__title_link" href="http://www.businessinsider.in/retail/e-commerce/news/tataneu-could-be-worth-15-billion-all-thanks-to-bigbasket-croma-and-westside/articleshow/92052094.cms">TataNeu could be worth $15 billion all thanks to BigBasket, Croma and Westside</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="http://www.businessinsider.in/business/startups/news/flexiloans-com-bags-90-million-to-cover-six-years-of-journey-in-one-year/articleshow/92041187.cms">FlexiLoans.com bags $90 million to cover six years’ of journey in one year</a>

PayTM could be entering a low cost-high profit margin regime, say a brokerage firm

Equity benchmark <keyword id="6484188" type="DEFINITION" weightage="20" keywordseo="sensex">Sensex</keyword> plummeted over 1,500 points in opening trade on Monday dragged by selloff in index-heavyweights HDFC twins, ICICI Bank, TCS and Infosys amid negative cues from global markets. The 30-share index was trading 1,513.68 points or 4.49 per cent lower at 32,203.94, and the NSE Nifty plunged 425.70 points, or 4.32 per cent, to 9,434.20. ICICI Bank was the top laggard in the Sensex pack, sinking over 8 per cent, followed by IndusInd Bank, Tata Steel, Bajaj Finance, Tech Mahindra, HDFC and HDFC Bank. Shares of Reliance Industries fell over 1 per cent after the oil-to-telecom conglomerate on Thursday posted its biggest ever drop in quarterly net profit. Its net profit in January-March slipped 37 per cent to Rs 6,546 crore, the lowest in three years. <div type="Article" hostid="261" msid="75526873" title="Reliance Jio’s valuation jumps more than half a billion dollars in just 12 days, thanks to Silver Lake" mstype="2" mssubtype="0"></div> Meanwhile, earlier in the day, Silver Lake - one of the world's largest tech investors - agreed to invest Rs 5,655.75 crore to buy a 1.15 per cent stake in Jio Platforms. Sun Pharma was the sole gainer in the BSE index. In the previous session, the BSE barometer settled 997.46 points or 3.05 per cent higher at 33,717.62, while the Nifty soared 306.55 points, or 3.21 per cent, to 9,859.90. Market remained closed on Friday for 'Maharashtra Day'. Foreign portfolio investors were net buyers in the capital market on Thursday, as they purchased equity shares worth Rs 1,968.80 crore, according to provisional exchange data. The government on Friday extended the nationwide lockdown till May 17. According to analysts, the market has realised that the cascading effect of the restrictions on the domestic economy and corporate earnings is much more than anticipated. Besides, selloff in other Asian equities too spooked investors, traders said. Bourses in Hong Kong and Seoul were trading significantly lower, while those in Shanghai and Tokyo were closed for a holiday. International oil benchmark Brent crude futures were trading flat at USD 26.41 per barrel. Meanwhile, global tally of coronavirus infections was over 35 lakh, with around 2.47 lakh deaths. The death toll due to COVID-19 in India rose to 1,373 and the number of cases climbed to 42,533 in the country, according to the health ministry. See also: <a href="https://www.businessinsider.in/business/corporates/news/tech-mahindra-new-deals-full-list/articleshow/75526386.cms">All the new deals signed by Tech Mahindra in the last three months</a> <a href="https://www.businessinsider.in/business/corporates/news/reliance-jio-stake-sale-to-silver-lake-boosts-ril-share-valuation/articleshow/75526873.cms">Reliance Jio’s valuation jumps more than half a billion dollars in just 12 days, thanks to Silver Lake</a> <a href="https://www.businessinsider.in/business/startups/news/from-bigbasket-to-swiggy-to-nobroker-top-ten-indian-startups-that-raised-money-in-april-amidst-the-coronavirus-crisis/articleshow/75526547.cms">From BigBasket to Swiggy to Nobroker⁠— top ten Indian startups that raised money in April amidst the coronavirus crisis</a>

Between US-China bickering and earnings bummer from RIL and HUL, Sensex has lost over 4% in first hour of trading

<ul><li><keyword id="267527" type="COMPANY" weightage="20" keywordseo="Craftsman-Automation">Craftsman Automation</keyword> has launched its ₹824 crore initial public offer (IPO) today, and it will be open for subscription till March 17.</li><li>The price band is fixed at ₹1,488-1,490, and each lot consists of 10 equity shares.</li><li>While some investment experts are bullish on the stock and suggest subscribing, others have pointed out certain risk factors.</li><li>This includes the risk posed by electric vehicles and supply chain shocks, among others.</li></ul>It’s raining initial public offers (IPO) this month, and the latest to join the list is the ₹824-crore <keyword id="10449692" type="UNKNOWN" weightage="20" keywordseo="Craftsman-Automation-IPO">Craftsman Automation IPO</keyword>. The Coimbatore-based company has kicked off its IPO today, March 15, with a price band of ₹1,488-1,490, netting you 10 shares per lot. The total IPO size is worth ₹824 crore, but Craftsman Automation has already secured ₹247 crore from anchor investors. 50% of the issue is reserved for qualified institutional buyers (QIB), 15% for non-institutional bidders and the remaining 35% for retail investors. <cmsannotation type="cmsannotation" annotationid="Understanding the business of Craftsman Automation" comment="subhead" text="Understanding the business of Craftsman Automation">Understanding the business of Craftsman Automation</cmsannotation> Craftsman Automation was founded in 1986 in Coimbatore. It has vertically integrated manufacturing capabilities and primarily caters to three business verticals – automotive-powertrain, automotive-aluminum, and industrial &amp; engineering. Craftsman is the leading player when it comes to machining of cylinder blocks and cylinder heads which are used in the commercial vehicles and construction equipment industries. It is also one of the top companies when it comes to supplying these parts in the tractor segment. Coming to the automotive-aluminum vertical, Craftsman has an array of processes in the high pressure, low pressure and gravity die casting for manufacturing auto components for passenger vehicles. In the industrial and engineering vertical, Craftsman builds aluminum products for power transmission, high-end precision products like gear boxes, marine engines and more. <cmsannotation type="cmsannotation" annotationid="Here are some of the clients of Craftsman Automation" comment="subhead" text="Here are some of the clients of Craftsman Automation">Here are some of the clients of Craftsman Automation</cmsannotation> Craftsman Automation has an impressive list of clients that includes companies like Daimler India, Tata Motors, Ashok Leyland, Mahindra &amp; Mahindra, Escorts, John Deere, JCB India, TVS Motors, Royal Enfield among others. <table style="border-width: initial; border-style: none;"></colgroup><tbody><tr><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 1pt;border-top:solid #000000 0.5pt;vertical-align:bottom;padding:0pt 5.75pt 0pt 5.75pt;overflow:hidden;overflow-wrap:break-word;">Brokerage </td><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 1pt;border-top:solid #000000 0.5pt;vertical-align:bottom;padding:0pt 5.75pt 0pt 5.75pt;overflow:hidden;overflow-wrap:break-word;">Recommendation </td></tr><tr><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 1pt;vertical-align:bottom;background-color:#d9d9d9;padding:0pt 5.75pt 0pt 5.75pt;overflow:hidden;overflow-wrap:break-word;">Prabhudas Lilladher </td><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 1pt;vertical-align:bottom;background-color:#d9d9d9;padding:0pt 5.75pt 0pt 5.75pt;overflow:hidden;overflow-wrap:break-word;">Subscribe for long term </td></tr><tr><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:bottom;padding:0pt 5.75pt 0pt 5.75pt;overflow:hidden;overflow-wrap:break-word;">ICICI Direct </td><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:bottom;padding:0pt 5.75pt 0pt 5.75pt;overflow:hidden;overflow-wrap:break-word;">Subscribe </td></tr><tr><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:bottom;background-color:#d9d9d9;padding:0pt 5.75pt 0pt 5.75pt;overflow:hidden;overflow-wrap:break-word;">Canara Bank Securities </td><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:bottom;background-color:#d9d9d9;padding:0pt 5.75pt 0pt 5.75pt;overflow:hidden;overflow-wrap:break-word;">Subscribe for long term </td></tr><tr><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:bottom;padding:0pt 5.75pt 0pt 5.75pt;overflow:hidden;overflow-wrap:break-word;">Marwadi Financial Services </td><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:bottom;padding:0pt 5.75pt 0pt 5.75pt;overflow:hidden;overflow-wrap:break-word;">Subscribe </td></tr></tbody></table> <cmsannotation type="cmsannotation" annotationid="Craftsman Automation – strengths and risk factors" comment="subhead" text="Craftsman Automation – strengths and risk factors">Craftsman Automation – strengths and risk factors</cmsannotation> <cmsannotation type="cmsannotation" annotationid="Diversified engineering company" comment="subhead" text="Diversified engineering company">Diversified engineering company</cmsannotation> Craftsman is the largest player in the machining of cylinder blocks and cylinder heads used in commercial vehicles and construction industry. Apart from this, it also offers products in the passenger vehicle, power transmission, marine engine segments, among others. “Its diversification of revenue across multiple customers allows it to prevent any possible customer concentration in any of its business segments,” stated a report by SMC Global Securities dated March 10. <cmsannotation type="cmsannotation" annotationid="Strong in-house processes and designing capabilities" comment="subhead" text="Strong in-house processes and designing capabilities">Strong in-house processes and designing capabilities</cmsannotation> The SMC report further adds that Craftsman has a ‘strong focus’ on research and development. Its manufacturing automation teams integrate robots and gantry systems, which helps in ensuring consistent quality. The report notes that Craftsman’s design capability is unique amongst its competitors. <cmsannotation type="cmsannotation" annotationid="Impressive domestic and global clientele" comment="subhead" text="Impressive domestic and global clientele">Impressive domestic and global clientele</cmsannotation> Craftsman has a range of marquee clientele, both domestic as well as global. Some of the big domestic names include Tata Motors, Mahindra &amp; Mahindra, Ashok Leyland, TVS Motors, Royal Enfield and others. Global names in the list include the likes of John Deere, India subsidiaries of Daimler, JCB among others. <cmsannotation type="cmsannotation" annotationid="Improving margins despite challenging business environment" comment="subhead" text="Improving margins despite challenging business environment">Improving margins despite challenging business environment</cmsannotation> Despite a challenging business environment and falling revenues, Craftsman has been able to improve its earnings. While its revenues fell by nearly 18% from March 2019 to March 2020, its earnings before interest, tax, depreciation and amortisation (EBITDA) improved from 25.12% to 27.24%. EBITDA is a measure of the company’s financial performance. <cmsannotation type="cmsannotation" annotationid="Powertrain and allied components prone to electric vehicles risk" comment="subhead" text="Powertrain and allied components prone to electric vehicles risk">Powertrain and allied components prone to electric vehicles risk</cmsannotation> While Craftsman’s prowess in the powertrain segment adds heft to the company’s profile, powertrain components would be obsolete when the present internal combustion engine (ICE) based vehicles are replaced by electric vehicles (EVs). <cmsannotation type="cmsannotation" annotationid="Low aftermarket presence ties company’s fortunes to OEMs" comment="subhead" text="Low aftermarket presence ties company’s fortunes to OEMs">Low aftermarket presence ties company’s fortunes to OEMs</cmsannotation> Craftsman caters to original equipment manufacturers (OEMs) across its three business verticals. Some of these OEMs operate in industries like automotive, steel, cement among others, which are cyclical in nature. As such, the demand tapers off in some seasons, and since Craftsman directly serves OEMs, its fortunes are tied to those of the OEMs. <cmsannotation type="cmsannotation" annotationid="Limited long-term contracts, prone to supply chain risk" comment="subhead" text="Limited long-term contracts, prone to supply chain risk">Limited long-term contracts, prone to supply chain risk</cmsannotation> According to the ICICI Direct report dated March 12, Craftsman does not have any exclusive supply arrangements and purchases material on a spot order basis. This exposes the company to supply chain risks. SEE ALSO: <a href="https://www.businessinsider.in/stock-market/news/the-760-crore-anupam-rasayan-ipo-has-received-a-mixed-response-from-brokerages-heres-what-works-for-it-and-what-doesnt/articleshow/81462495.cms">The ₹760-crore Anupam Rasayan IPO has received a mixed response from brokerages — here's what works for it and what doesn't</a> <a href="https://www.businessinsider.in/stock-market/news/bitcoins-path-to-5-trillion-plus-the-markets-20-most-shorted-spacs-right-now/articleshow/81501083.cms">Bitcoin's path to $5 trillion, plus the market's 20 most-shorted SPACs right now</a> <a href="https://www.businessinsider.in/business/startups/news/tata-tryst-with-e-grocery-starts-with-a-billion-dollar-acquisition-of-bigbasket-heres-why-it-could-be-a-sweet-deal-for-both/articleshow/81478849.cms">Tata’s tryst with e-grocery starts with a billion dollar acquisition of BigBasket – here’s why it could be a sweet deal for both</a>

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