A recent report by <keyword id="23201114" type="General" weightage="20" keywordseo="Centrum-Institutional-Research" source="keywords" meta.keywordsubtype="org" meta.entityname="Centrum Institutional Research" meta.hostid="261" meta.entityid="Centrum Institutional Research">Centrum Institutional Research</keyword> reveals a sharp rise in the number of <keyword id="21365016" type="General" weightage="100" keywordseo="wealthy-Indians" source="keywords">wealthy Indians</keyword> over the past five years. The data highlights that the number of individuals earning more than Rs 10 crore annually has surged by 63%, bringing the total count to approximately 31,800. Meanwhile, those earning over Rs 5 crore per annum now number 58,200, marking a significant 49% increase. <h2>Wealth growth across <keyword id="23201527" type="General" weightage="20" keywordseo="income-tiers" source="keywords">income tiers</keyword></h2>The report not only tracks the increase in high earners but also highlights growth among those earning above Rs 50 lakh annually. Over the last five years, this group has expanded by 25%, with nearly 10 lakh individuals now in this income bracket. In terms of cumulative income, the report showcases rapid growth. The income of individuals earning over Rs 10 crore annually grew at a compound annual growth rate (CAGR) of 121% between FY19 and FY24, reaching a staggering Rs 38 lakh crore. Those earning more than Rs 5 crore annually saw their collective income grow by 106% CAGR, amounting to Rs 40 lakh crore. Similarly, the income of those earning over Rs 50 lakh per annum increased by 64%, totaling Rs 49 lakh crore over the same period. <div type="Article" hostid="261" msid="113328057" title="The illegal maneuvers the rich use to get richer" mstype="2" mssubtype="0"></div>The Centrum report also forecasts significant growth for India's <keyword id="20301791" type="General" weightage="20" keywordseo="High-Net-Worth-Individuals" source="keywords">High Net Worth Individuals</keyword> (HNI) and <keyword id="21662893" type="General" weightage="20" keywordseo="Ultra-High-Net-Worth-Individuals" source="keywords">Ultra High Net Worth Individuals</keyword> (UHNI). By 2028, their combined financial assets are expected to rise from USD 1.2 trillion in 2023 to USD 2.2 trillion, driven by an annual growth rate of 13-14% over the period from 2023 to 2028. The <keyword id="23201526" type="General" weightage="20" keywordseo="mass-affluent-market" source="keywords">mass affluent market</keyword> is also projected to grow in early double digits during this time. <h2>A gap in professional <keyword id="20074812" type="General" weightage="20" keywordseo="wealth-management" source="keywords">wealth management</keyword></h2>While the wealth of India's affluent is growing rapidly, the report highlights a key difference between India and advanced economies: only 15% of financial wealth in India is professionally managed, compared to 75% in more developed markets. This gap suggests a significant opportunity for the professional wealth management sector as India’s wealthy population continues to grow. (With inputs from ANI)

Individuals earning over Rs 10 cr rise by 63% in India; financial assets of high net worth individuals to nearly double by 2028

<ul><li>India’s <keyword id="19955404" type="General" weightage="20" keywordseo="finance" source="keywords">finance</keyword> minister revises FY24’s fiscal deficit targets to 5.8% of GDP from 5.9% fixed earlier.</li><li>The revenue receipts at ₹30.03 lakh crore for FY24 are expected to be higher than the Budget Estimate.</li><li>Most economists had said that the government is on track to achieve the fiscal deficit target. </li></ul>The biggest takeaway from the Finance Minister Nirmala Sitharaman’s <keyword id="19906106" type="General" weightage="20" keywordseo="interim-budget" source="keywords">interim Budget</keyword> announcement is the government’s fiscal consolidation program. While the current year’s fiscal deficit has been revised to 5.8% of GDP from 5.9% estimated earlier, the big surprise is next year’s target. Finance minister announced that the fiscal deficit target for FY25 was set at 5.1% of GDP. “The revenue receipts at ₹30.03 lakh crore are expected to be higher than the Budget Estimate, reflecting strong growth momentum and formalization in the economy. The Revised Estimate of the fiscal deficit is 5.8% of GDP, improving on the Budget Estimate, notwithstanding moderation in the nominal growth estimates,” she said in her speech. She said that the government will continue on the path of fiscal consolidation, to reduce the fiscal deficit below 4.5% by 2025-26. The gross and net market borrowings through dated securities during FY25 are estimated at ₹14.13 and ₹11.75 lakh crore respectively. “Both will be less than that in 2023-24. Now that the private investments are happening at scale, the lower borrowings by the Central Government will facilitate larger availability of credit for the private sector,” FM added. She also set the FY25’s divestment target at ₹50,000 crore. Bond markets cheer The bond markets have been cheering the move. This led to a significant drop in India's 10-year yield by 100 basis points to 7.04%. Experts see further drop in yields due to flows from foreign institutional investors and the government’s move increases its chances of a possible ratings upgrade. “The finance ministry is clearly aiming for rating upgrade with aggressive fiscal deficit reduction target as we are at investment grade rating,” said Chirag Mehta, CIO of Quantum AMC. Gaurav Dua, head of capital market strategy, Sharekhan by BNP Paribas too said that the fiscal deficit target of 5.1% for FY25 is good news for the markets. “Bond markets are celebrating the same, with a rally in bond prices and appreciation in INR against USD,” he added. The government sticking to the path of fiscal consolidation is good news for foreign investors. A few experts had also worried that this pre-election budget would have populist measures. Lack of such measures seems to have enthused the experts. “The FM is sticking to fiscal responsibility with a lower fiscal deficit which could be music to the ears of foreign investors and impending $25 billion bond inclusion in June as lower budget deficits and pared borrowings will help bring down yields. It could possibly open the door for a ratings upgrade,” said Pradeep Gupta, Co-founder &amp; Vice-chairman, Anand Rathi Group. As borrowings and liquidity conditions ease, the markets can also expect a possible interest rate cut in the coming financial year. “Lesser borrowing by the government will be beneficial for the private sector and households as it will put more money on the table for them. It will also pave the way for RBI to start cutting rates sooner compared to other economies,” said Apurva Sheth, head of market perspectives &amp; research at Samco Securities.

With FY25 fiscal deficit target at 5.1%, FM is gunning for ratings upgrade say experts

<ul><li><keyword id="6357150" type="General" weightage="100" keywordseo="tcs" source="Orion">TCS</keyword> announced the surprise exit of CEO <keyword id="1422411" type="General" weightage="50" keywordseo="rajesh-gopinathan" source="Orion">Rajesh Gopinathan</keyword> on March 16, stating that <keyword id="16820734" type="General" weightage="50" keywordseo="krithi-krithivasan" source="Orion">Krithi Krithivasan</keyword> would be taking over. </li><li>Despite the unexpected exit, brokerages are optimistic about <keyword id="16817833" type="General" weightage="80" keywordseo="krithivasan" source="Orion">Krithivasan</keyword>’s leadership as there would be ‘nil disruption’. </li><li>Analysts at Nuvama Institutional Equities are of the view that the correction in shares of TCS over <keyword id="221979" type="General" weightage="80" keywordseo="gopinathan" source="Orion">Gopinathan</keyword>’s exit offers an investment opportunity. </li></ul>All eyes are on<a href="https://www.businessinsider.in/business/corporates/news/k-krithivasan-an-iit-kanpur-graduate-appointed-as-tcs-ceo-designate/slidelist/98725089.cms"> TCS’ CEO designate Krithi Krithivasan</a> who is<a href="https://www.businessinsider.in/business/corporates/news/tcs-is-an-integral-part-of-who-i-am-ill-be-a-part-of-tcs-too-as-it-soars-rajesh-gopinathan/articleshow/98722638.cms"> taking over the reins</a> of India’s largest IT services company from Rajesh Gopinathan. His exit came as a surprise as his term was extended for five years only last year. Yet, brokerages expect a smooth transition as the new CEO is an insider, and has worked with the company for 34 years. Prior to his appointment as CEO, Krithivasan headed the banking, financial services and insurance (BFSI) segment, which is TCS’ largest. According to the company’s<a href="https://www.businessinsider.in/business/corporates/news/overall-demand-scenario-not-changed-significantly-but-europe-is-a-problem-says-tcs-ceo/articleshow/96859049.cms"> December quarter results</a>, the BFSI segment contributed to 38% of TCS’ revenue, at ₹22,145 crore. Krithivasan’s appointment received a thumbs up from brokerages given his role in heading the BFSI segment. “BFSI is the largest segment within TCS, contributing over 30% of revenue in Q3 FY23, which makes Krithivasan the natural/perfect choice for the role,” said a report by Nuvama Institutional Equities. <cmsannotation type="cmsannotation" annotationid="‘Nil disruption from management transition’" comment="subhead" text="‘Nil disruption from management transition’">‘Nil disruption from management transition’</cmsannotation> Brokerages maintained an optimistic outlook on Gopinathan’s exit, largely due to Krithivasan’s experience in heading the company’s largest business segment, and his experience in leading the BFSI segment. Krithivasan is only the fifth CEO of TCS, which was founded 55 years ago and has over 6 lakh employees on its payroll. Both Krithivasan and Gopinathan are old hands at the company, and have risen through the ranks. “TCS is a well-oiled machine, and has a long history of seamless transitions at all management levels. Most of its leadership positions have been held by TCS veterans, who have risen through the ranks. We see nil disruption from this management transition,” the Nuvama report added. Analysts at ICICI Securities echoed similar sentiments, given Krithivasan’s experience with TCS in various roles, and the availability of Gopinathan over the next six months to support him settle into his new role. “This appointment is in line with TCS’ strategy of succession planning well in advance and grooming internal employees to take on leadership positions,” the ICICI Securities report added. Overall, most brokerages sounded confident about Krithivasan’s credentials and ability to lead India’s largest IT services company. Analysts at Motilal Oswal even expressed confidence that due to his experience in leading the BFSI segment, Krithivasan wouldn’t face questions that Gopinathan had to – when he took over as the CEO in 2017. “Notably, given his leadership of the unified BFSI vertical since 2017, he is unlikely to face external questions on client relationships that Gopinathan faced as CFO of TCS in 2017,” said a report by Motilal Oswal. <cmsannotation type="cmsannotation" annotationid="Treat price correction as opportunity to invest, say analysts" comment="subhead" text="Treat price correction as opportunity to invest, say analysts">Treat price correction as opportunity to invest, say analysts</cmsannotation> The sudden exit of Gopinathan combined with the negative sentiments in equity markets around the world have put downward pressure on the TCS stock. TCS’ shares were down over 2% mid-way through the trading session on Monday, to ₹3,100. According to the analysts at Centrum Broking, Gopinathan’s exit could be considered as a negative in the short-term. “Rajesh Gopinathan was re-appointed as CEO last year and therefore his resignation is a surprise and likely to be perceived negatively,” the Centrum Broking report noted. Analysts at Nuvama underlined that investors should consider any correction in TCS’ share price as an opportunity to buy into the stock. “Any drop in the stock price must be used as an opportunity to add as valuation is no longer expensive, which makes risk-reward profile attractive,” the Nuvama report said. TCS’ shares have corrected by 10.8% in the last one month. However, improvements in deal pipeline and margins has analysts bullish on the stock, who expect an upside in the range of 16% to 32% over the current market price. <table style="border-width: initial; border-style: none;"><colgroup></colgroup><col /><col /><col /><col /><tbody><tr><td style="border-left:solid #000000 0.6000000000000001pt;border-right:solid #000000 0.6000000000000001pt;border-bottom:solid #000000 0.6000000000000001pt;border-top:solid #000000 0.6000000000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Brokerage </td><td style="border-left:solid #000000 0.6000000000000001pt;border-right:solid #000000 0.6000000000000001pt;border-bottom:solid #000000 0.6000000000000001pt;border-top:solid #000000 0.6000000000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Recommendation </td><td style="border-left:solid #000000 0.6000000000000001pt;border-right:solid #000000 0.6000000000000001pt;border-bottom:solid #000000 0.6000000000000001pt;border-top:solid #000000 0.6000000000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Target price </td><td style="border-left:solid #000000 0.6000000000000001pt;border-right:solid #000000 0.6000000000000001pt;border-bottom:solid #000000 0.6000000000000001pt;border-top:solid #000000 0.6000000000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Upside </td></tr><tr><td style="border-left:solid #000000 0.6000000000000001pt;border-right:solid #000000 0.6000000000000001pt;border-bottom:solid #000000 0.6000000000000001pt;border-top:solid #000000 0.6000000000000001pt;vertical-align:bottom;background-color:#d9d9d9;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Centrum Broking </td><td style="border-left:solid #000000 0.6000000000000001pt;border-right:solid #000000 0.6000000000000001pt;border-bottom:solid #000000 0.6000000000000001pt;border-top:solid #000000 0.6000000000000001pt;vertical-align:bottom;background-color:#d9d9d9;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Add </td><td style="border-left:solid #000000 0.6000000000000001pt;border-right:solid #000000 0.6000000000000001pt;border-bottom:solid #000000 0.6000000000000001pt;border-top:solid #000000 0.6000000000000001pt;vertical-align:bottom;background-color:#d9d9d9;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹3,607 </td><td style="border-left:solid #000000 0.6000000000000001pt;border-right:solid #000000 0.6000000000000001pt;border-bottom:solid #000000 0.6000000000000001pt;border-top:solid #000000 0.6000000000000001pt;vertical-align:bottom;background-color:#d9d9d9;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">16% </td></tr><tr><td style="border-left:solid #000000 0.6000000000000001pt;border-right:solid #000000 0.6000000000000001pt;border-bottom:solid #000000 0.6000000000000001pt;border-top:solid #000000 0.6000000000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">ICICI Direct Research </td><td style="border-left:solid #000000 0.6000000000000001pt;border-right:solid #000000 0.6000000000000001pt;border-bottom:solid #000000 0.6000000000000001pt;border-top:solid #000000 0.6000000000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Buy </td><td style="border-left:solid #000000 0.6000000000000001pt;border-right:solid #000000 0.6000000000000001pt;border-bottom:solid #000000 0.6000000000000001pt;border-top:solid #000000 0.6000000000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹3,780 </td><td style="border-left:solid #000000 0.6000000000000001pt;border-right:solid #000000 0.6000000000000001pt;border-bottom:solid #000000 0.6000000000000001pt;border-top:solid #000000 0.6000000000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">22% </td></tr><tr><td style="border-left:solid #000000 0.6000000000000001pt;border-right:solid #000000 0.6000000000000001pt;border-bottom:solid #000000 0.6000000000000001pt;border-top:solid #000000 0.6000000000000001pt;vertical-align:bottom;background-color:#d9d9d9;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Motilal Oswal </td><td style="border-left:solid #000000 0.6000000000000001pt;border-right:solid #000000 0.6000000000000001pt;border-bottom:solid #000000 0.6000000000000001pt;border-top:solid #000000 0.6000000000000001pt;vertical-align:bottom;background-color:#d9d9d9;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Buy </td><td style="border-left:solid #000000 0.6000000000000001pt;border-right:solid #000000 0.6000000000000001pt;border-bottom:solid #000000 0.6000000000000001pt;border-top:solid #000000 0.6000000000000001pt;vertical-align:bottom;background-color:#d9d9d9;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹3,810 </td><td style="border-left:solid #000000 0.6000000000000001pt;border-right:solid #000000 0.6000000000000001pt;border-bottom:solid #000000 0.6000000000000001pt;border-top:solid #000000 0.6000000000000001pt;vertical-align:bottom;background-color:#d9d9d9;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">23% </td></tr><tr><td style="border-left:solid #000000 0.6000000000000001pt;border-right:solid #000000 0.6000000000000001pt;border-bottom:solid #000000 0.6000000000000001pt;border-top:solid #000000 0.6000000000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">ICICI Securities </td><td style="border-left:solid #000000 0.6000000000000001pt;border-right:solid #000000 0.6000000000000001pt;border-bottom:solid #000000 0.6000000000000001pt;border-top:solid #000000 0.6000000000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Buy </td><td style="border-left:solid #000000 0.6000000000000001pt;border-right:solid #000000 0.6000000000000001pt;border-bottom:solid #000000 0.6000000000000001pt;border-top:solid #000000 0.6000000000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹3,834 </td><td style="border-left:solid #000000 0.6000000000000001pt;border-right:solid #000000 0.6000000000000001pt;border-bottom:solid #000000 0.6000000000000001pt;border-top:solid #000000 0.6000000000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">24% </td></tr><tr><td style="border-left:solid #000000 0.6000000000000001pt;border-right:solid #000000 0.6000000000000001pt;border-bottom:solid #000000 0.6000000000000001pt;border-top:solid #000000 0.6000000000000001pt;vertical-align:bottom;background-color:#d9d9d9;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Nuvama Insitutional Equities </td><td style="border-left:solid #000000 0.6000000000000001pt;border-right:solid #000000 0.6000000000000001pt;border-bottom:solid #000000 0.6000000000000001pt;border-top:solid #000000 0.6000000000000001pt;vertical-align:bottom;background-color:#d9d9d9;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Buy </td><td style="border-left:solid #000000 0.6000000000000001pt;border-right:solid #000000 0.6000000000000001pt;border-bottom:solid #000000 0.6000000000000001pt;border-top:solid #000000 0.6000000000000001pt;vertical-align:bottom;background-color:#d9d9d9;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹4,100 </td><td style="border-left:solid #000000 0.6000000000000001pt;border-right:solid #000000 0.6000000000000001pt;border-bottom:solid #000000 0.6000000000000001pt;border-top:solid #000000 0.6000000000000001pt;vertical-align:bottom;background-color:#d9d9d9;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">32% </td></tr></tbody></table> Note: Upside compared to current market price of ₹3,100 as on March 20, 2023 SEE ALSO: <a href="https://www.businessinsider.in/finance/banks/news/hdfc-hdfc-bank-merger-gets-nclt-clearance/articleshow/98735804.cms">HDFC-HDFC Bank merger gets NCLT clearance</a> <a href="https://www.businessinsider.in/stock-market/news/reliance-shares-down-22-from-all-time-high-attractive-entry-opportunity-says-jp-morgan/articleshow/98725589.cms">Reliance shares down 22% from all-time high: Attractive entry opportunity, says JP Morgan</a> <a href="https://www.businessinsider.in/business/corporates/news/tcs-is-an-integral-part-of-who-i-am-ill-be-a-part-of-tcs-too-as-it-soars-rajesh-gopinathan/articleshow/98722638.cms">TCS is an integral part of who I am, I’ll be a part of TCS too as it soars: Rajesh Gopinathan</a>

New CEO of TCS  Krithivasan gets a thumbs up from analysts who are betting on his experience & leadership skills

<ul><li>Shares of the majority of pharma companies have delivered negative returns to investors in 2022.</li><li>Analysts say this is because the industry is struggling after Covid-19 as margins reported during FY21 (peak of Covid-19) will not be repeated anytime soon.</li><li>Along with it, softer generic prices in the US are also impacting the company revenues.</li></ul>Fortunes of pharmaceutical companies have taken a turn for the worse as the peak demand witnessed during the Covid-19 pandemic is tapering off. High freight costs and pricing pressures in the key US generics market have taken a heavy toll on the margins of Indian drug firms. However, analysts are confident that the firms will begin to recover some of the lustre in the second half of the current financial year. After a successful run in the Covid-19 period that created fortunes for pharma companies, dynamics have changed. There is no longer a constant need for medication and vaccines, and this has led to a slowdown in the industry. Shares of the majority of the pharma companies have received a battering at the bourses as well – the fall has been steep so far this year, many in the double digits. In the same period, the Nifty Pharma index slipped 10.98%, while the broader Sensex remained flat. <table style="border-width: initial; border-style: none; table-layout: fixed; width: 468pt;" class="redcator-table-advance"><colgroup></colgroup><col /><col /><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;">Pharma companies </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;">% change in 2022 </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;">Sun Pharmaceutical Industries </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;">4.64% </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;">Cipla </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;">11.45% </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;">Divi's Laboratories </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;">-22.70% </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;">Dr Reddy’s Laboratories </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;">-12.77% </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;">Pfizer </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;">-15.54% </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;">Biocon </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;">-19.50% </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;">Aurobindo Pharma </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;">-26.69% </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;">Laurus Lab </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;">6.04% </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;">Abbott India </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;">-4.92% </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;">Lupin </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;">-31.16% </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;">Gland Pharma </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;">-35.85% </td></tr></tbody><tbody></tbody><tbody></tbody><tbody></tbody><tbody></tbody></table> Cost pressures build up post Covid-19 Analysts say the performance of pharma companies have been on a declining trend due to cost pressures, freight costs and pricing pressure in the US generics market. Note that the US is the most profitable market for pharmaceutical companies. It’s the prime export destination for the industry, constituting nearly 34% of total Indian exports during FY22, which registered a growth of 2% in dollar terms. Meanwhile, exports to the rest of the world (ROW) witnessed a decline of 7%, said a report by CareEdge, a rating agency. With the normalisation of Covid-19 related medication expenses, the industry suffered a decline in its profit margin during FY22 over FY21. “This apart, the US generic market saw a steep rise in competition and consequent price erosion, which also impacted the profitability of the <keyword id="1134323" type="General" weightage="20" keywordseo="indian-pharma-industry" source="Orion">Indian pharma industry</keyword> during FY22. However, the negative impact of price erosion on profitability was partly offset by the depreciation of INR against USD,” said the CareEdge report. The recent June-quarter performance also reflected the weakness in the sector. “The quarter performance was largely weak for our coverage universe, which resulted in a sharp margin contraction and earnings de-growth. The performance was tainted by increased cost pressure on account of inflated raw material costs, freight costs, and increased operating expenses led to margin contraction,” said a report by Centrum Institutional Research. Another reason for the poor performance is a high base on account of strong demand for Covid-led products in Q1FY22. “With the continued cost pressure, the Indian pharma space has been struggling,” said the report. Industry outlook going ahead Going ahead, analysts believe the sector is set to recover. They expect the sales in the US to normalise in the second half of the current financial year (FY23). “We expect the pharma sector to continue its strong growth trajectory ahead on a disrupted base. The Indian pharmaceutical market (IPM) is expected to report around 10-12% growth in FY23, and we expect US sales to normalise in H2FY23, with recovery in wave three followed by improvement in inventories,” said the Centrum Institutional Research report. However, the on-going pricing pressure in the US market has “tapered down sequentially, growing in mid-single digits as compared to the double-digit price erosion in Q4FY22,” said the report. Meanwhile, near-term headwinds like plant inspections by the US drug regulator – FDA – could drag down the short-term performance but long-term growth prospects remain intact, said analysts at Centrum. “On a full-year basis, CareEdge expects the PBILDT (profit before interest, lease rentals, depreciation and taxation) margin to shrink by 200-250 bps during FY23 over FY22 after considering the positive impact of rupee depreciation. Despite expected moderation in operating profitability in the near to medium term, the credit profile of pharmaceutical companies is expected to remain strong due to their low reliance on external debt,” said a report by CareEdge. <div type="javascript" title="Custom" contenttype="Image"><cdata><![CDATA[<blockquote class="stocktwits-embedded-post" data-origin="https://stocktwits.com" data-id="483622731"> $NIFTYPHARMA.NSE - To be kept in radar Initial signs of change of trend in Pharma Sector is seen... Price has been bouncing from a key level of importance (holding importance since last 5 years).... The bearish patterns are slowly turning to Bullish pattern (Refer chart)... Bullish patterns seen- Inv. H&amp;S Rounding bottom Double bottom with Higher lows Base formation Technically, second sign of bullishness will be cross and close above 13200. &mdash; (@PHIstocks) <a href="https://stocktwits.com/PHIstocks/message/483622731"> September 08, 2022</a></blockquote><script async src="https://stocktwits.com/min/widgets.js" charset="utf-8"></script>]]></cdata></div> SEE ALSO: <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/entertainment/news/brahmstra-hits-the-advance-booking-bulls-eye-but-needs-word-of-mouth-publicity/articleshow/94055321.cms">Brahmāstra hits the advance booking bulls eye but needs word of mouth publicity</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/stock-market/news/from-sbi-to-icici-indian-banks-are-entering-an-earnings-upgrade-cycle-says-morgan-stanley/articleshow/94049013.cms">Time to buy banks? Morgan Stanley says yes as banks are entering 2nd leg of earnings upgrades</a>

Indian pharma to recover from pricing pressures in the second half of FY23

<ul><li>Shares of most paper manufacturing companies are picking up amid a volatile market as COVID-19 impact recedes and it has turned out good for the sector.</li><li>Since <keyword id="37180" type="General" weightage="20" keywordseo="schools" source="Orion">schools</keyword>, <keyword id="37181" type="General" weightage="20" keywordseo="colleges" source="Orion">colleges</keyword>, offices and <keyword id="6357311" type="General" weightage="20" keywordseo="courts" source="Orion">courts</keyword> have opened up, full-fledged demand for paper got a boost.</li><li>Analysts expect strong earnings growth for the sector over the next couple of quarters.</li></ul>Paper manufacturing companies are witnessing a good pickup in demand as the impact of COVID-19 recedes and schools, colleges, courts and offices opening in full capacity. Besides, most of the paper manufacturers have reportedly taken a price hike due to low collection of waste paper, a key raw material for manufacturing recycled paper after the European Union (EU) banned exports of waste paper in October 2021. This was because the sudden digitalisation led by the pandemic had dipped the demand for paper. There are two types of paper -- recycled and mills’ paper. Recycled papers are made from waste paper, while mills’ paper are made from wood pulp. Generally, prices of mills’ paper trade are at a premium to recycled paper. Analysts at Centrum Institutional Research said that there has never been a situation in the last 40 years when recycled paper prices have been more than mills' paper. Further, analysts expect strong earnings growth for the sector over the next couple of quarters led by favourable price hikes and uptick in demand. “With (the) impact of pandemic receding, schools, colleges, offices and courts have opened up full-fledged. With [an] uptick in demand, distributors have started stocking inventory. Also, inflationary trend has led to higher than normal demand at distributor level. Thus, the troika of demand normalisation, higher level of demand at channels and favourable pricing has created a happy scenario for [the] likes of JK, West Coast and Andhra Paper. Windfall gains can be expected for these companies over [the] next couple of quarters as per our channel checks,” said analysts at Centrum Institutional Research. <table style="border-width: initial; border-style: none; table-layout: fixed; width: 468pt;"><colgroup></colgroup><col /><col /><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;">Paper companies </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;">% change in 5 days </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;">JK Paper </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;">+28% </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;">Andhra Paper </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;">+29% </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;">West Coast Paper Mills </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;">+24% </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;">Seshasayee Paper &amp; Boards </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></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;">Tamilnadu Newsprint &amp; Papers </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;">+23% </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;">Emami Paper </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;">+23% </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;">Satia Industries </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;">+13% </td></tr></tbody></table>“Paper stocks have seen good accumulation this week as almost all players have raised prices and traditionally the fourth quarter is always the best quarter more so this time around in view of the opening up theme gaining momentum," reportedly said S Ranganathan, head of research at LKP Securities. SEE ALSO: <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/business/news/nykaas-falguni-nayars-net-worth-is-four-times-higher-than-paytms-vijay-shekhar-sharma/articleshow/90264203.cms">Falguni Nayar's net worth is now four times higher than that of Vijay Shekhar Sharma</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/finance/news/tensions-around-high-crude-oil-prices-have-eased-as-price-goes-below-100-per-barrel/articleshow/90255285.cms">Tensions around high crude oil prices have eased as price goes below $100 per barrel</a>

Paper manufacturing company stocks are in big demand since last couple of days and here’s why

<ul><li>India’s <keyword id="382726" type="General" weightage="20" keywordseo="agrochemicals-industry" source="Orion">agrochemicals industry</keyword> is expected to continue growing in double digits, according to research firm Crisil.</li><li>In its latest report, Crisil says that the agrochemical industry’s revenues are estimated to grow at 15-17% in FY23, and 10-12% in FY24 as India continues to benefit from “China plus one” strategy.</li><li>Analysts believe exports will remain one of the key contributors to the agrochemical industry’s growth going forward with a share of over 50% in the industry’s total revenue.</li><li>Amongst the key players in the Indian agrochemical industry are United Phosphorus, PI Industries and Sumitomo Chemical. </li></ul>India’s agrochemicals sector will grow at 15-17% in FY23, primarily driven by strong exports and stable domestic demand, according to a report from research firm Crisil. The sector registered a 23% rise in the fiscal year ended 2022. According to Crisil, in FY24 too, the industry revenue will see an expansion – of 10-12% – as India continues to benefit from the “China plus one” strategy of global players and as patents on key molecules expire. “Export revenue is seen rising 18-20% this fiscal, with the US dollar appreciating ~9% so far and volume growing as global players continue to de-risk their China dependency. Next fiscal, exports will likely grow 12-14% as players keep up capex with an eye on molecules worth $4 billion going off-patent over the next two years,” said Poonam Upadhyay, director at Crisil Ratings. As a result, exports will remain the major contributor to the agrochemicals sector accounting for around 53% of the total revenue, says the Crisil report. India has been at the forefront of the chemicals and agrochemicals space during the last one decade because of tightening of environmental regulations in China in 2015 and its subsequent fallout on the global chemicals supply chain, according to a report by Centrum Institutional Research. United Phosphorus (UPL) is the top pesticide and agrochemicals company in India based on market capitalization, followed by PI Industries and Sumitomo Chemical. <table style="border-width: initial; border-style: none; table-layout: fixed; width: 468pt;"><colgroup></colgroup><col /><col /><col /><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;">Top agrochemicals companies </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;">Market cap </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;">YTD % change </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;">UPL </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;">₹55,313 crore </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></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;">PI Industries </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;">₹52,324 crore </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;">13% </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;">Sumitomo Chemical </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;">₹23,639 crore </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;">21% </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;">Bayer CropScience </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;">₹21,862 crore </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;">-2% </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;">Fine Organic Industries </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;">₹17,185 crore </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;">48% </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;">BASF </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;">₹11,974 crore </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;">-8% </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;">Rallis India </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;">₹4,595 crore </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;">-14% </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;">Sharda Cropchem </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;">₹4,103 crore </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;">29% </td></tr></tbody></table>Source: NSE, as on 3:30 p.m Input costs to weigh While the industry growth is expected to be in the double digits according to the Crisil report, high raw material prices are expected to take their toll. The report says that prices of crude and yellow phosphorus, the key raw materials, shot up by 40-45% and 18-22%, respectively, in the latter half of the last fiscal. “Continued high prices, despite some moderation lately, will dent gross margins by 90-110 basis points. However, higher operating leverage, derived from better cost absorption, will ensure overall operating margin remains at 15-16% this fiscal, only marginally lower compared with fiscal 2022. Margins are expected to stabilise at similar levels next fiscal,” said the report. Higher operating leverage would help sustain operating margins at 15-16% in the current and next fiscal (16.6% last fiscal), despite input prices remaining elevated, as per the Crisil report. Surplus rain in September, favourable weather conditions and continued government focus on improving farm incomes will aid growth in the domestic segment, which is expected to expand 10-12% in FY23, Crisil said. Going ahead, supply chain disruptions, sharp volatility in raw material prices, and the next monsoon season will be key factors that will affect the sector’s growth, Crisil said. SEE ALSO: <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/business/news/housing-demand-in-october-december-2022-rose-19-over-last-year-proptiger-report/articleshow/96569246.cms">Housing demand in October-December 2022 rose 19% over last year: PropTiger report</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/business/news/list-of-countries-that-are-safe-to-travel-this-new-year-amid-rising-covid-cases/slidelist/96565450.cms">Here’s a list of countries that are safe to travel this new year amid rising Covid cases</a>

India’s agrochemicals industry to see double-digit growth in FY23 and FY24 on  strong exports boost, says Crisil

<ul><li><keyword id="6358032" type="General" weightage="100" keywordseo="spicejet" source="Orion">SpiceJet</keyword> is currently navigating turbulent airwaves, and it needs a liquidity boost to help it come out of its troubles.</li><li>The airline has reportedly grounded several of its Boeing 737 aircraft over non-payment of GST dues.</li><li>However, this could just be a tip of the iceberg, and here’s what we know so far.</li></ul>Ajay Singh took over SpiceJet from Dayanidhi Maran, of Sun Group, in 2015, with some reports suggesting that he paid just ₹2 per share for his 58.5% stake, being <a href="https://www.livemint.com/Companies/t9wGYNXBYet9YoTWcZ8asI/Ajay-Singh-The-turnaround-man.html">hailed</a> as the “turnaround man” of the Indian aviation industry. However, his airline has been facing turbulence for a while now, with the list of problems now including the taxman. SpiceJet, one of the two listed airlines in India, has reported losses consecutively for the past six quarters, and there could be more trouble brewing for the company. The airline barely has enough cash to pay off its GST dues, reported to be up to ₹285 crore, while its cash reserves were around ₹320 crore. This, according to a<a href="https://www.business-standard.com/article/companies/aircraft-leasing-companies-hit-tax-air-pocket-over-spicejet-dues-121110800037_1.html"> Business Standard</a> report, has prevented SpiceJet from sending back 13 Boeing 737 aircraft to its lessors. Due to non-payment of tax dues, the tax authorities have refused to grant a ‘no objection certificate’ to SpiceJet to give back the leased aircraft to its lessors. <cmsannotation type="cmsannotation" annotationid="What’s holding SpiceJet back from returning the aircraft?" comment="subhead" text="What’s holding SpiceJet back from returning the aircraft?">What’s holding SpiceJet back from returning the aircraft?</cmsannotation> At the core of the issue is a tax demand by the tax authorities under the Goods and Services Tax (GST) regime – the report stated that SpiceJet failed to pay GST dues worth ₹285 crore. According to the company’s financial results as of March, 2021, SpiceJet had ₹320 crore in the form of cash and cash equivalents. The liquidity crunch seems to be an immediate and critical issue for the company. In comparison, its rival IndiGo had a balance of ₹509 crore as of March 2021, and ₹1,366 crore as of September, 2021. <div type="image" title="SpiceJet revenue_profit - 2019- June 2021." msid="87583217" hostid="261" caption="&amp;lt;p&amp;gt;Spicejet revenue and profit.&amp;lt;/p&amp;gt;"></div> The airline filed a petition in the courts to allow it to pay the dues in 10 installments, which was countered by the tax authorities stating that there is no provision in the GST Act that allows payment in instalments. As such, the non-payment of GST dues is now preventing SpiceJet from trimming its operating costs. For an airline, lease rentals on aircrafts are one of the core operating costs. But there’s more to SpiceJet’s troubles than just tax dues. <cmsannotation type="cmsannotation" annotationid="Lease liabilities account for ₹3 out of ₹4 of SpiceJet’s balance sheet" comment="subhead" text="Lease liabilities account for ₹3 out of ₹4 of SpiceJet’s balance sheet">Lease liabilities account for ₹3 out of ₹4 of SpiceJet’s balance sheet</cmsannotation> Lease liabilities are one of the biggest dues on SpiceJet’s balance sheet – nearly every ₹3 out of ₹4 is towards the airline’s lessors. The company’s lease liability as on March 31, 2021 was over ₹8,446.3 crore, while the total liabilities stood at ₹11,376 crore. In comparison, its rival IndiGo’s lease liabilities stood at a close 70% in the same period. <cmsannotation type="cmsannotation" annotationid="Lease rentals balloon" comment="subhead" text="Lease rentals balloon">Lease rentals balloon</cmsannotation> As of June 2021, lease rentals accounted for over 10% of SpiceJet’s total operating costs, increasing by more than six times when compared to the same period last year. SpiceJet’s total fleet stood at 100 at the end of March, 2021, falling from 114 a year ago. This is still a third more than the 75 aircraft it had in its fleet in 2019, though. Analysts at Centrum Institutional Research estimate that this number will come down to 90 next year, and with it, the lease rentals should come down proportionately, too. <cmsannotation type="cmsannotation" annotationid="Delay in Boeing 737 Max settlement adding to SpiceJet’s troubles" comment="subhead" text="Delay in Boeing 737 Max settlement adding to SpiceJet’s troubles">Delay in Boeing 737 Max settlement adding to SpiceJet’s troubles</cmsannotation> The Boeing 737 Max safety issues resulted in SpiceJet grounding the aircraft in India from March 2019. The aircraft was grounded around the world following two fatal crashes, and SpiceJet is the only airline to use it in India. As a result of this, SpiceJet claimed more than ₹1,200 crore in compensation from Boeing. It has yet to receive a ‘substantial’ part of this compensation, according to media <a href="https://www.hindustantimes.com/business/spicejet-woes-may-continue-even-after-737-max-return-101630287222382.html'">reports</a>. <cmsannotation type="cmsannotation" annotationid="Rising fuel costs another major worry" comment="subhead" text="Rising fuel costs another major worry">Rising fuel costs another major worry</cmsannotation> Another cause of concern for SpiceJet – among other airlines – is the increase in fuel costs. Aviation turbine fuel (ATF) prices have nearly doubled in the preceding 12 months. Given that these costs <a href="https://economictimes.indiatimes.com/industry/transportation/airlines-/-aviation/atf-price-hike-set-to-hurt-aviation-travel-rebound/articleshow/87476903.cms">account</a> for up to 40% of an airline’s total operating costs, this is a major cause of concern for the ailing SpiceJet. <cmsannotation type="cmsannotation" annotationid="Fundraising could help SpiceJet in the short term" comment="subhead" text="Fundraising could help SpiceJet in the short term">Fundraising could help SpiceJet in the short term</cmsannotation> Earlier this year, SpiceJet confirmed that it has received shareholder approval to raise up to ₹2,500 crore via a qualified institutional placement of eligible securities, either bonds or other instruments. Apart from this, the airline has also received approval to hive off its cargo business to its subsidiary, <keyword id="6866514" type="General" weightage="20" keywordseo="spicexpress" source="Orion">SpiceXpress</keyword>, which would result in a one-time gain of ₹2,500 crore. Analysts at Prabhudas Lilladher say this could “go a long way in alleviating [its] liquidity constraints”. Business Insider has reached out to SpiceJet for a statement and will update the story if and when we receive a response. SEE ALSO: <a href="https://www.businessinsider.in/business/startups/news/subscribe-to-paytm-ipo-experts-are-not-fully-convinced/articleshow/87578255.cms">India's biggest IPO is here — here's what analysts have to say</a> <a href="https://www.businessinsider.in/finance/banks/news/what-is-an-evergreening-loan-and-why-is-it-hurting-indusind-banks-investors/articleshow/87581103.cms">What is Evergreening and why is it hurting IndusInd Bank’s investors today?</a> <a href="https://www.businessinsider.in/business/startups/news/how-to-subscribe-to-paytm-ipo-on-zerodha-paytm-money-banks/articleshow/87510232.cms">Paytm IPO will open today — here is how to apply via bank and apps like Zerodha, Paytm Money</a>

There are several problems ailing SpiceJet and the taxman knocking on its doors is just one of them

<ul><li>Once the official delisting proposal is made, minority shareholders will have to approve the proposal.</li><li><keyword id="139991" type="COMPANY" weightage="20" keywordseo="Hexaware">Hexaware</keyword> has proposed to delist the company at ₹285 per share, which is a premium of 10% over the closing price as on June 4.</li><li>There should be at least twice the number of minority shareholders in favour of delisting at the given price.</li><li>The promoters of Hexaware own 62.44%, while the rest is owned by mutual funds, foreign institutional investors and retail investors.</li></ul>The Hexaware stock hit the upper circuit on the stock exchanges in the Friday morning trade (June 5), locking at ₹311.30 after a delisting proposal was made by the company's promoters. The share remained locked at the upper circuit of 20% even as the company proposed to delist shares at ₹285 per share, which is a 10% premium over the closing price as on June 4. "HT Global IT Solutions Holdings, the promoter of the company has expressed its intention to acquire all fully paid up equity shares of the company that are held by the public shareholders of the Company," Hexaware said in an exchange filing. <div type="image" title="Hexaware share price" msid="76208553" hostid="261" caption="&amp;lt;p&amp;gt;Hexaware share price sinch March 2020&amp;lt;/p&amp;gt;"></div> The promoters of Hexaware own 62.44%, while the rest is owned by mutual funds, foreign institutional investors and retail investors. "The promoter considers a price of Rs 285 per equity share (Indicative Offer Price) as a price at which the promoter / promoter group will be willing to accept equity shares in the delisting proposal," the company further added. <div type="Article" hostid="261" msid="75809411" title="Vedanta shareholders aren't thrilled⁠— stock slides after Board approved delisting at ₹87.5 a piece" mstype="2" mssubtype="0"></div> What are the analysts saying? Analyst houses are either neutral or bullish on the Hexaware stock. HDFC Securities has maintained its ‘Buy’ rating on the stock with a target price of ₹300, which it has crossed in the first hour of trading today. The research house says that Hexaware’s higher profit after tax (PAT), strong sales and lower client risk puts Hexaware in a strong position. Emkay Research, on the other hand, has maintained its ‘Hold’ rating with a target price of ₹300. It credited Hexaware’s net profit gains to improved forex performance in Q4 2020. <table style="border-width: initial; border-style: none;"><colgroup></colgroup><col /><col /><col /><tbody><tr><td style="border-left:solid #000000 0.496875pt;border-right:solid #000000 0.496875pt;border-bottom:solid #000000 0.99375pt;border-top:solid #000000 0.496875pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Brokerage </td><td style="border-left:solid #000000 0.496875pt;border-right:solid #000000 0.496875pt;border-bottom:solid #000000 0.99375pt;border-top:solid #000000 0.496875pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Target price </td><td style="border-left:solid #000000 0.496875pt;border-right:solid #000000 0.496875pt;border-bottom:solid #000000 0.99375pt;border-top:solid #000000 0.496875pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Rating </td></tr><tr><td style="border-left:solid #000000 0.496875pt;border-right:solid #000000 0.496875pt;border-bottom:solid #000000 0.496875pt;border-top:solid #000000 0.99375pt;vertical-align:top;background-color:#d9d9d9;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">HDFC Securities </td><td style="border-left:solid #000000 0.496875pt;border-right:solid #000000 0.496875pt;border-bottom:solid #000000 0.496875pt;border-top:solid #000000 0.99375pt;vertical-align:top;background-color:#d9d9d9;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹300 </td><td style="border-left:solid #000000 0.496875pt;border-right:solid #000000 0.496875pt;border-bottom:solid #000000 0.496875pt;border-top:solid #000000 0.99375pt;vertical-align:top;background-color:#d9d9d9;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Buy </td></tr><tr><td style="border-left:solid #000000 0.496875pt;border-right:solid #000000 0.496875pt;border-bottom:solid #000000 0.496875pt;border-top:solid #000000 0.496875pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">ICICI Securities </td><td style="border-left:solid #000000 0.496875pt;border-right:solid #000000 0.496875pt;border-bottom:solid #000000 0.496875pt;border-top:solid #000000 0.496875pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹315 </td><td style="border-left:solid #000000 0.496875pt;border-right:solid #000000 0.496875pt;border-bottom:solid #000000 0.496875pt;border-top:solid #000000 0.496875pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Hold </td></tr><tr><td style="border-left:solid #000000 0.496875pt;border-right:solid #000000 0.496875pt;border-bottom:solid #000000 0.496875pt;border-top:solid #000000 0.496875pt;vertical-align:top;background-color:#d9d9d9;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Emkay Research </td><td style="border-left:solid #000000 0.496875pt;border-right:solid #000000 0.496875pt;border-bottom:solid #000000 0.496875pt;border-top:solid #000000 0.496875pt;vertical-align:top;background-color:#d9d9d9;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹270 </td><td style="border-left:solid #000000 0.496875pt;border-right:solid #000000 0.496875pt;border-bottom:solid #000000 0.496875pt;border-top:solid #000000 0.496875pt;vertical-align:top;background-color:#d9d9d9;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Hold </td></tr><tr><td style="border-left:solid #000000 0.496875pt;border-right:solid #000000 0.496875pt;border-bottom:solid #000000 0.496875pt;border-top:solid #000000 0.496875pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Centrum Research </td><td style="border-left:solid #000000 0.496875pt;border-right:solid #000000 0.496875pt;border-bottom:solid #000000 0.496875pt;border-top:solid #000000 0.496875pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹340 </td><td style="border-left:solid #000000 0.496875pt;border-right:solid #000000 0.496875pt;border-bottom:solid #000000 0.496875pt;border-top:solid #000000 0.496875pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Buy </td></tr></tbody></table> What happens next? Now, Hexaware’s minority shareholders will have to approve the delisting proposal through ballot once it is out. There should be at least twice as many minority shareholders in favour of the proposal. Who holds how much of Hexaware stock? <div type="image" title="Hexaware shareholding" msid="76209062" hostid="261" caption="&amp;lt;p&amp;gt;Hexaware shareholders&amp;lt;/p&amp;gt;"></div> Mutual funds, foreign institutional investors and retail investors own 37.56% of the stake in the company. However, given the 20% jump in the <keyword id="9348808" type="UNKNOWN" weightage="20" keywordseo="hexaware-share">Hexaware share</keyword> price today, it is likely that the company will be able to easily convince the minority shareholders. <table style="border-width: initial; border-style: none;"><colgroup></colgroup><col /><col /><tbody><tr><td style="border-left:solid #000000 0.496875pt;border-right:solid #000000 0.496875pt;border-bottom:solid #000000 0.99375pt;border-top:solid #000000 0.496875pt;vertical-align:top;padding:0pt 5pt 0pt 5pt;overflow:hidden;overflow-wrap:break-word;">Mutual Fund </td><td style="border-left:solid #000000 0.496875pt;border-right:solid #000000 0.496875pt;border-bottom:solid #000000 0.99375pt;border-top:solid #000000 0.496875pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Stake in Hexaware </td></tr><tr><td style="border-left:solid #000000 0.496875pt;border-right:solid #000000 0.496875pt;border-bottom:solid #000000 0.496875pt;border-top:solid #000000 0.99375pt;vertical-align:top;background-color:#d9d9d9;padding:0pt 5pt 0pt 5pt;overflow:hidden;overflow-wrap:break-word;">HDFC Mid-cap Opportunities Fund </td><td style="border-left:solid #000000 0.496875pt;border-right:solid #000000 0.496875pt;border-bottom:solid #000000 0.496875pt;border-top:solid #000000 0.99375pt;vertical-align:top;background-color:#d9d9d9;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">4.94% </td></tr><tr><td style="border-left:solid #000000 0.496875pt;border-right:solid #000000 0.496875pt;border-bottom:solid #000000 0.496875pt;border-top:solid #000000 0.496875pt;vertical-align:top;padding:0pt 5pt 0pt 5pt;overflow:hidden;overflow-wrap:break-word;">HDFC Hybrid Equity Fund </td><td style="border-left:solid #000000 0.496875pt;border-right:solid #000000 0.496875pt;border-bottom:solid #000000 0.496875pt;border-top:solid #000000 0.496875pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">1.45% </td></tr><tr><td style="border-left:solid #000000 0.496875pt;border-right:solid #000000 0.496875pt;border-bottom:solid #000000 0.496875pt;border-top:solid #000000 0.496875pt;vertical-align:top;background-color:#d9d9d9;padding:0pt 5pt 0pt 5pt;overflow:hidden;overflow-wrap:break-word;">SBI Magnum Midcap Fund </td><td style="border-left:solid #000000 0.496875pt;border-right:solid #000000 0.496875pt;border-bottom:solid #000000 0.496875pt;border-top:solid #000000 0.496875pt;vertical-align:top;background-color:#d9d9d9;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">1.17% </td></tr><tr><td style="border-left:solid #000000 0.496875pt;border-right:solid #000000 0.496875pt;border-bottom:solid #000000 0.496875pt;border-top:solid #000000 0.496875pt;vertical-align:top;padding:0pt 5pt 0pt 5pt;overflow:hidden;overflow-wrap:break-word;">Franklin India Prima Fund </td><td style="border-left:solid #000000 0.496875pt;border-right:solid #000000 0.496875pt;border-bottom:solid #000000 0.496875pt;border-top:solid #000000 0.496875pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">0.79% </td></tr></tbody></table>Source: BSE, Kotak Securities SEE ALSO: <a href="https://www.businessinsider.in/stock-market/news/anil-agarwal-net-worth-vedanta-share-price-voluntary-delisting-approved-in-board-meeting/articleshow/75809411.cms">Vedanta shareholders aren't thrilled⁠— stock slides after Board approved delisting at ₹87.5 a piece</a> <a href="https://www.businessinsider.in/stock-market/markets/news/foreign-investors-fpi-sold-shares-despite-modi-20-lakh-crore-stimulus/articleshow/75807397.cms">Foreign investors sold shares worth over a billion dollars in the last four trading days⁠ while India was unveiling its ₹20 lakh crore stimulus</a> <a href="https://www.businessinsider.in/stock-market/markets/news/indusind-icici-bank-hdfc-bank-and-sbi-among-top-10-losers-in-nifty-bank/articleshow/75805726.cms">From IndusInd to ICICI Bank to SBI ⁠— banks were among the worst-hit despite the government pause on new bad loans</a>

Hexaware stock jumps by 20% as the company considers delisting at ₹285 per share

<ul><li>The global brokerage firm CLSA sees ITC's FMCG business as its new 'value driver,' and estimates EBITDA margin for FMCG to grow at 30% CAGR for the next three years.</li><li>JM Financial Services believes ITC still has a $22 billion addressable opportunity— which is much larger than the 'size of markets' of its peers</li><li>ITC shares have lost 30% of its value since the beginning of this year.</li><li><a href="https://www.businessinsider.in/">Check out the latest news and updates on Business Insider. </a></li></ul>The shares of ITC, a tobacco and FMCG major, have been underperforming the market for a while now, raising concerns for its shareholders. And this COVID-19 pandemic has only added to the pressure. ITC's share price has fallen over 30% since the beginning of this year — given the drag from its mainstay cigarette business that was hit hard during the lockdown. The 110-year old ITC earns 59% of its revenues from non-tobacco business, according<a href="https://www.bseindia.com/xml-data/corpfiling/AttachHis/d48d203b-eb92-453a-b750-3c6a5947deac.pdf"> to FY20 results</a>. Comparatively, even its peers in the FMCG space have held their ground. Both HUL and Britannia's shares are now almost back to the pre-COVID levels — HUL has gained over 13%, whereas Britannia is up over 24% for the year. However, despite this weakness, investment experts are still betting on its potential ahead — they believe that the FMCG business will be the 'new value driver' — so much so that ITC may surpass its peers in the near future. <div type="image" title="ITC (1)" msid="78696958" hostid="261"></div> In fact, JM Financial Services believes that ITC still has a $22 billion addressable opportunity— which is much larger than HUL’s ‘size of markets’ and over three times that of Nestle India. The report highlighted that ITC’s FMCG segment is one of the most under-appreciated businesses in the Indian consumer space currently. But, by FY30, ITC could clock an FMCG EBITDA much higher than the combined FY20 EBITDA of its peers Tata Consumer, Nestle India, and Britannia. But, what may have changed for ITC over the quarter? Here’s what experts said. ITC has a ‘new value driver’ The global brokerage firm CLSA states that “ITC’s FMCG segment is set to become a major value driver, with the company’s legacy cigarette business providing the cash to meet its ambitious goals.” It recently upgraded the stock from Outperform to Buy with a target of ₹220. CLSA believes that ITC’s strategy to build capabilities and revenue in the FMCG space is a move in the right direction and puts their FMCG business on a clear path to profitability. CLSA estimates the EBITDA margin for FMCG to grow at 30% CAGR for the next three years. <div type="image" title="ITC portfolio" msid="78696972" hostid="261"></div> Though ITC as a stock doesn’t cut it for Founder and Chief Investment Officer of Marcellus Investment Managers, Saurabh Mukherjea — he is bullish about growth in its FMCG segment. Earlier in August, this year, Mukherjea, in an exclusive chat with Business Insider, said, “In a sense, our reckoning was for companies which can do two things well, and ITC can/does cigarettes very well. I think the ITC’s cigarette cash machine is the mightiest cash machine. In FMCG, they were increasingly successful. And, I think they can continue building the FMCG franchise under the leadership of Mr Puri. The recent acquisition is probably a sign of many more such successful FMCG acquisitions to come.” <div type="image" title="ITC FMCG" msid="78696984" hostid="261"></div> In a recent interview with<a href="https://www.moneycontrol.com/news/business/have-recovered-well-since-lockdown-says-itc-chairman-and-md-sanjiv-puri-5956561.html"> CNBC-TV18</a>, ITC chairman Sanjiv Puri said he was surprised by the underperformance in the stock and is taking measures to create shareholder value. On the FMCG business, Puri added that margin expansion will sustain and that FMCG growth will be industry-leading. Cigarette business drags, but it’s set to see a turnaround ITC's cigarette business took a massive hit during the pandemic. Due to the partial re-opening of the economy earlier this year, the company saw some revival on the back of pent-up demand in June. However, since then, the cigarette sales for ITC have fallen every month by 5-6%, according to B&amp;K Securities. Apart from COVID, there is also an overhang with environmental, social, and corporate governance (ESG) theme investments that may become a headwind for tobacco companies. "We believe the gradual lifting of lockdowns in most states, opening up of bars in some states and more attendance in offices due to lesser fears from COVID-19, will lead to the marginal smoker slowly coming back," said B&amp;K Securities. However, Angel Broking believes that if the Maharashtra Government's move to ban the sale of loose cigarettes is implemented, this may hurt ITC's cigarette sales volume. But it's also to be noted that Maharashtra has the least number of the smoking population than the other parts of India. <div type="image" title="Capture new" msid="78697218" hostid="261"></div>Source: Centrum Broking ITC: Value buy or value trap? The shares of ITC have been in a downward trend since July 2017. And current technical indicators also suggest a bearish momentum. However, most analysts remain bullish on the company and have been for a while now. According to Bloomberg data, 30 of 39 analysts have a ‘Buy’ call. The bulls batting for ITC believe that the stock remains attractive at these low valuations. Paras Bothra, President of Equity Research, Ashika Stock Broking, told Business Insider that “ITC looks to be undervalued from a valuation perspective, and hence it is a good value Buy.” Bothra also added that “the second quarter is likely to be better than the first quarter as the economy opens up, and all their key verticals start functioning.” <table style="border-width: initial; border-style: none;"><colgroup></colgroup><col /><col /><col /><tbody><tr><td style="border-left:solid #000000 0.9907650000000001pt;border-right:solid #000000 0.9907650000000001pt;border-bottom:solid #000000 0.9907650000000001pt;border-top:solid #000000 0.9907650000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Brokerages on ITC </td><td style="border-left:solid #000000 0.9907650000000001pt;border-right:solid #000000 0.9907650000000001pt;border-bottom:solid #000000 0.9907650000000001pt;border-top:solid #000000 0.9907650000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Recommendation </td><td style="border-left:solid #000000 0.9907650000000001pt;border-right:solid #000000 0.9907650000000001pt;border-bottom:solid #000000 0.9907650000000001pt;border-top:solid #000000 0.9907650000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Target Price </td></tr><tr><td style="border-left:solid #000000 0.9907650000000001pt;border-right:solid #000000 0.9907650000000001pt;border-bottom:solid #000000 0.9907650000000001pt;border-top:solid #000000 0.9907650000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">CLSA </td><td style="border-left:solid #000000 0.9907650000000001pt;border-right:solid #000000 0.9907650000000001pt;border-bottom:solid #000000 0.9907650000000001pt;border-top:solid #000000 0.9907650000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Buy </td><td style="border-left:solid #000000 0.9907650000000001pt;border-right:solid #000000 0.9907650000000001pt;border-bottom:solid #000000 0.9907650000000001pt;border-top:solid #000000 0.9907650000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹ 220 </td></tr><tr><td style="border-left:solid #000000 0.9907650000000001pt;border-right:solid #000000 0.9907650000000001pt;border-bottom:solid #000000 0.9907650000000001pt;border-top:solid #000000 0.9907650000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Centrum </td><td style="border-left:solid #000000 0.9907650000000001pt;border-right:solid #000000 0.9907650000000001pt;border-bottom:solid #000000 0.9907650000000001pt;border-top:solid #000000 0.9907650000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Buy </td><td style="border-left:solid #000000 0.9907650000000001pt;border-right:solid #000000 0.9907650000000001pt;border-bottom:solid #000000 0.9907650000000001pt;border-top:solid #000000 0.9907650000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹260 </td></tr><tr><td style="border-left:solid #000000 0.9907650000000001pt;border-right:solid #000000 0.9907650000000001pt;border-bottom:solid #000000 0.9907650000000001pt;border-top:solid #000000 0.9907650000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">B&amp;K Securities </td><td style="border-left:solid #000000 0.9907650000000001pt;border-right:solid #000000 0.9907650000000001pt;border-bottom:solid #000000 0.9907650000000001pt;border-top:solid #000000 0.9907650000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Buy </td><td style="border-left:solid #000000 0.9907650000000001pt;border-right:solid #000000 0.9907650000000001pt;border-bottom:solid #000000 0.9907650000000001pt;border-top:solid #000000 0.9907650000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹353 </td></tr><tr><td style="border-left:solid #000000 0.9907650000000001pt;border-right:solid #000000 0.9907650000000001pt;border-bottom:solid #000000 0.9907650000000001pt;border-top:solid #000000 0.9907650000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Kotak Institutional Securities </td><td style="border-left:solid #000000 0.9907650000000001pt;border-right:solid #000000 0.9907650000000001pt;border-bottom:solid #000000 0.9907650000000001pt;border-top:solid #000000 0.9907650000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Buy </td><td style="border-left:solid #000000 0.9907650000000001pt;border-right:solid #000000 0.9907650000000001pt;border-bottom:solid #000000 0.9907650000000001pt;border-top:solid #000000 0.9907650000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹240 </td></tr><tr><td style="border-left:solid #000000 0.9907650000000001pt;border-right:solid #000000 0.9907650000000001pt;border-bottom:solid #000000 0.9907650000000001pt;border-top:solid #000000 0.9907650000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Ashika Stock Broking </td><td style="border-left:solid #000000 0.9907650000000001pt;border-right:solid #000000 0.9907650000000001pt;border-bottom:solid #000000 0.9907650000000001pt;border-top:solid #000000 0.9907650000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Buy </td><td style="border-left:solid #000000 0.9907650000000001pt;border-right:solid #000000 0.9907650000000001pt;border-bottom:solid #000000 0.9907650000000001pt;border-top:solid #000000 0.9907650000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹ 220 </td></tr><tr><td style="border-left:solid #000000 0.9907650000000001pt;border-right:solid #000000 0.9907650000000001pt;border-bottom:solid #000000 0.9907650000000001pt;border-top:solid #000000 0.9907650000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Motilal Oswal </td><td style="border-left:solid #000000 0.9907650000000001pt;border-right:solid #000000 0.9907650000000001pt;border-bottom:solid #000000 0.9907650000000001pt;border-top:solid #000000 0.9907650000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Neutral </td><td style="border-left:solid #000000 0.9907650000000001pt;border-right:solid #000000 0.9907650000000001pt;border-bottom:solid #000000 0.9907650000000001pt;border-top:solid #000000 0.9907650000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹ 185 </td></tr><tr><td style="border-left:solid #000000 0.9907650000000001pt;border-right:solid #000000 0.9907650000000001pt;border-bottom:solid #000000 0.9907650000000001pt;border-top:solid #000000 0.9907650000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">ICICI Securities </td><td style="border-left:solid #000000 0.9907650000000001pt;border-right:solid #000000 0.9907650000000001pt;border-bottom:solid #000000 0.9907650000000001pt;border-top:solid #000000 0.9907650000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">ADD </td><td style="border-left:solid #000000 0.9907650000000001pt;border-right:solid #000000 0.9907650000000001pt;border-bottom:solid #000000 0.9907650000000001pt;border-top:solid #000000 0.9907650000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹ 220 </td></tr></tbody></table> SEE ALSO:<a href="https://www.businessinsider.in/stock-market/news/dow-jones-ends-lower-for-third-day-as-weak-jobless-claims-stimulus-impasse-weigh-on-sentiment/articleshow/78692395.cms" data-type="tilCustomLink"> Dow Jones ends lower for third day as weak jobless claims, stimulus impasse weigh on sentiment</a> <a href="https://www.businessinsider.in/business/corporates/news/hcl-tech-second-quarter-to-see-a-boost-from-cloud-adoption-analysts-expect-it-to-breach-3-5-revenue-growth-guidance/articleshow/78685100.cms" data-type="tilCustomLink">HCL Tech's second quarter to see a boost from cloud adoption — analysts expect it to breach 3.5% revenue growth guidance</a> <a href="https://www.businessinsider.in/defense/news/border-infrastructure-is-not-the-cause-of-friction-between-india-and-china-says-mea-spokesperson/articleshow/78681546.cms" data-type="tilCustomLink">Border infrastructure is not the cause of friction between India and China, says MEA spokesperson</a>

Investment experts are bullish on ITC's 'new value driver' — despite the 30% fall in share price this year

<ul><li>The Telecom Regulatory of India will not eliminate interconnect usage charges (IUC) on 1 January 2020. </li><li>Reliance Jio, Bharti Airtel and Vodafone Idea will continue to pay 6 paise per minute for calls to other networks. </li><li>While this may be good news for Bharti Airtel and Vodafone Idea, Reliance Jio is likely to bear the brunt/ </li></ul>Reliance Jio is going to continue being the ‘<a href="https://www.businessinsider.in/business/news/mukesh-ambanis-jio-faces-backlash-for-tariff-increase/articleshow/71573757.cms">second SIM of choice</a>’ as the Telecom Regulatory Authority of India (TRAI) decides to defer the elimination of interconnect usage charges (IUC) for another year. One of the ways that telecom operators generate revenue is by collecting IUC. It basically means that the network where the call originates has to pay the network of the call destination a small toll of using the latter’s bandwidth. In an ideal situation, especially since there are only three players in the market — Reliance Jio, Vodafone-Idea and Bharti Airtel — these charges would even out. But, that isn’t the case. Reliance Jio gets the short end of the stick with more than half the calls on its network — 64% — going off-network, according to an <a href="https://www.businessinsider.in/business/news/mukesh-ambanis-jio-faces-backlash-for-tariff-increase/articleshow/71573757.cms">India Ratings</a> report. Whereas Vodafone-Idea and Airtel subscribers only call off-network 41% and 45% of the time. Why calls are no longer unlimited on Reliance Jio The disbalance ends up making Jio the net payer of expenses, while its competitors end up being the net receivers. It’s also why Airtel and Vodafone-Idea can afford to offer free unlimited calling. <a href="https://www.businessinsider.in/business/telecom/news/reliance-jio-airtel-and-vodafone-idea-charges-for-outgoing-calls-to-other-networks/articleshow/72440347.cms">Reliance Jio</a>, on the other hand, has to limit the number of free IUC minutes it can offer its customers. Good news for Airtel and Vodafone-Idea The decision to let the telecom industry collect IUC means that Airtel and Vodafone-Idea will continue to earn 6 paise per minute for calls on their network until 1 January 2021. The influx of revenue will provide some relief for the operators who first had to face Jio’s tariff war on data and then the S<a href="https://www.businessinsider.in/stock-market/news/reliance-industries-jio-stock-prices-shoots-up-after-supreme-court-verdict/articleshow/71737746.cms">upreme Court judgement</a> on adjusted gross revenue (AGR). The Department of Telecommunication (DoT) is reportedly also looking into <a href="https://www.businessinsider.in/business/telecom/news/reliance-jio-airtel-and-vodafone-idea-face-more-financial-burden/articleshow/72513282.cms">pending license fees</a> under the expanded of AGR that Airtel may owe for the telecom companies it acquired — Videocon Communications and Aircel. Meanwhile, the company is heading up a <a href="https://telecom.economictimes.indiatimes.com/news/good-response-for-airtels-3-billion-fundraising-plan/72808998">$3 billion fundraising programme</a> across Singapore, Hong Kong, the US and Europe to meet its global investors and get more resources. Looking to the government to help Airtel and Vodafone-Idea <a href="https://www.businessinsider.in/business/telecom/reliance-jio-and-mukesh-ambani-have-unlimited-money-says-airtel-top-boss-sunil-mittal/articleshow/72485785.cms">appealed to the government</a> to set a floor price for calling charges — a move that TRAI has been hesitant to initiate. It feels that since the telecom industry recently <a href="https://www.businessinsider.in/business/telecom/news/reliance-jio-may-still-have-the-cheapest-plan-on-offer-as-airtel-and-vodafone-idea-have-a-lead-on-telecom-tariffs/articleshow/72335722.cms">hiked its tariffs</a>, and free to do so again in the future, that is there no need to set a minimum price. Minister of Commerce and Industry, <a href="https://telecom.economictimes.indiatimes.com/news/government-cant-take-suo-motu-action-to-revive-telecom-sector-piyush-goyal/72773793">Piyush Goyal</a>, also stated that the department can’t act out of step against the government to save the telecom industry. “Government proactively or suo motu cannot take an action on this (AGR) but I assure you that we are in continuous dialogue,” he said. It hasn’t helped that Vodafone CEO Nick Read’s remarks were misinterpreted and reported as the company wanting to ‘exit’ India due to the AGR dues — invoking disapproval from the government. Telecom Minister <a href="https://www.businessinsider.in/business/news/prasad-hits-out-at-vodafone-for-dictating-terms-to-india/articleshow/72773962.cms">Ravi Shankar Prasad</a> said that didn’t ‘appreciate’ such statement and that ‘no one should dictate terms’ on India. While things may look grime for Reliance Jio, experts feel that it will continue to be a market leader for the next two years. “Jio’s dominant position in terms of market share growth and data usage will sustain comfortably for the next 18-24 months, given its superior data speeds and 4G network coverage, even post change in tariffs,” according to <a href="https://telecom.economictimes.indiatimes.com/news/jio-likely-to-remain-market-leader-for-next-2-years-despite-tariff-hike/72809829">Centrum Institutional Research</a>. See also: <a href="https://www.businessinsider.in/business/telecom/news/reliance-jio-airtel-and-vodafone-idea-face-more-financial-burden/articleshow/72513282.cms">Three reasons why the Indian telecom sector's troubles went from bad to worse in the last 24 hours</a> <a href="https://www.businessinsider.in/business/telecom/reliance-jio-and-mukesh-ambani-have-unlimited-money-says-airtel-top-boss-sunil-mittal/articleshow/72485785.cms">Mukesh Ambani’s Reliance Jio has ‘unlimited’ access to finance, says Airtel top boss Sunil Mittal in his clarion call for government support</a> <a href="https://www.businessinsider.in/stock-market/news/reliance-industries-jio-stock-prices-shoots-up-after-supreme-court-verdict/articleshow/71737746.cms">It’s advantage Reliance Jio after Supreme Court verdict drains Airtel and Vodafone</a>

You Searched For "Centrum Institutional Research" and got 10 results

Individuals earning over Rs 10 cr rise by 63% in India; financial assets of high net worth individuals to nearly double by 2028

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Rounak Jain

Indian pharma to recover from pricing pressures in the second half of FY23

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Paper manufacturing company stocks are in big demand since last couple of days and here’s why

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India’s agrochemicals industry to see double-digit growth in FY23 and FY24 on strong exports boost, says Crisil

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There are several problems ailing SpiceJet and the taxman knocking on its doors is just one of them

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Hexaware stock jumps by 20% as the company considers delisting at ₹285 per share

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Investment experts are bullish on ITC's 'new value driver' — despite the 30% fall in share price this year

Navdeep Yadav

Disadvantage Jio — Airtel and Vodafone Idea will continue to charge for calls on their network

Prabhjote Gill