Port of Los Angeles Records Significant Drop in Imports Due to U.S. Tariff Impact

Business, Equities, Expert Views, Investor Forum, Market News, Markets, Research, Research Reports, Result Updates - November 10, 2023

Strategic Focus on Agri Exports Drives Seacoast's Q2 Revenue

Strategic Focus on Agri Exports Drives Seacoast’s Q2 Revenue

Company Overview:

Seacoast Shipping Services Ltd has emerged as a key player in the freight forwarding and shipping agent industry, particularly in Gujarat. The company specializes in providing comprehensive logistics solutions to exporters and importers, with a strategic focus on Agri export commodities via containers from Mundra port. Additionally, Seacoast has diversified into offering specialized project transportation services, achieving significant market prominence in Gujarat and securing a notable 10.68% market share.

Robust Growth in EBITDA (+88.8% YoY) driven by Operating efficiency

In Q2FY24, the company witnessed an impressive 88.8% YoY growth in EBITDA, reaching 10.7 Cr, driven by enhanced operating efficiency. Notably, employee costs saw a substantial 94.3% YoY reduction (-93.8% QoQ) to 0.02 Cr, a stark contrast from 0.43 Cr in Q2FY23 and 0.39 Cr in the previous quarter. This reduction in operating expenditure contributed to a significant increase in EBITDA margins, up by 367 bps YoY (+122 bps QoQ) to 8.84% (PQ-7.62).

ROE declined 182 bps QoQ but ROA expanded 63 bps QoQ in Q2

As of September 30, 2023, total equity exhibited a robust QoQ growth of 98.8%, reaching 123.21 Cr. This growth includes a 60% QoQ increase in equity share capital and a substantial 145% QoQ surge in reserves and surplus. As a result Despite a 98.5% growth in PAT in Q2FY24, the ROE experienced a 182 bps QoQ decline, standing at 6.27%. In contrast, the ROA expanded by 63 bps QoQ to 3.93%, driven by a 54% QoQ growth in PAT.

Operating Efficiency Boosts Margins in Q2

Q2FY24 witnessed a noteworthy decline in total operating expenditure, decreasing by 42.4% YoY (-62.5% QoQ) to 0.30 Cr. Within operating expenses, employee costs saw a substantial reduction of 94.3% YoY (-93.8% QoQ) to 0.02 Cr, while other expenses grew by 174% YoY and declined by 33.5% QoQ. Consequently, EBITDA margins expanded by 367 bps YoY (+122 bps QoQ) to 8.84%, and PAT margins grew by 282 bps YoY (+133 bps QoQ) to 6.36%.

Valuation and Key Ratios:

Seacoast is currently trading at a multiple of 9.23x EPS (TTM) and 0.37 at the current market price of 3.45, with the industry PE standing at 10.8x. The stock is trading at 1.51 times the book value of 2.29 Rs per share. In the EV/EBITDA multiple, the stock holds the 4th position among the top 7 peers at 6.71x, with the median at 7.52x. Despite a 182 bps QoQ decline in ROE to 6.27%, the ROA experienced a positive shift of 63 bps QoQ to 3.93%. The interest coverage ratio stands at a robust 13.9x, indicating the company’s strong solvency.

Q2FY24 Results Updates:

➡️ Revenue showed a commendable 10.4% YoY growth (+21.7% QoQ), reaching 121.42 Cr in Q2FY24.

➡️ EBITDA surged 88.8% YoY (+41.3% QoQ) to 10.73 Cr, driven by operational efficiency.

➡️ Operating expenditure reduction, particularly in employee costs (-94.3% YoY, -93.8% QoQ), contributed to the expansion of EBITDA and PAT margins by 367 bps YoY and 282 bps YoY, respectively.

➡️ PAT experienced a substantial 98.5% YoY growth (+54% QoQ), reaching 7.72 Cr due to top-line growth and operating efficiency

➡️ EPS for the quarter stood at 0.16 Rs (PQ-0.15 Rs), declining 86.2% YoY but growing by 6.67% QoQ.

Conclusion:

Seacoast Shipping Services Ltd has demonstrated robust financial performance in Q2FY24, marked by substantial growth in EBITDA, PAT, and operating efficiency. Despite a slight decline in ROE, the company has maintained strong solvency with a healthy interest coverage ratio. The stock’s current valuation, trading at 9.23x EPS and 1.51 times book value, positions it competitively within the industry. Overall, Seacoast Shipping Services Ltd continues to be a key player in the freight forwarding and shipping agent industry, showcasing resilience and adaptability in a dynamic market.

FB’s Q2FY24 PAT jumps to Rs 954 Cr on lower Provisions

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HUDCO Q3FY25 Results Update: Robust Performance Drives Strong Growth

Business, Equities, Expert Views, Investor Forum, Market News, Markets, Research, Research Reports, Result Updates - November 7, 2023

Fusion Micro Finance AUM Surpasses 10,000 Cr in Q2FY24

Company Overview:

Fusion Micro Finance, India’s leading NBFC-MFI, boasts a robust presence with 1,164 branches spanning 22 states and 3 union territories as of September 30, 2023. The company’s primary mission is to empower underserved and unserved women entrepreneurs in rural areas through microfinance, offering small-value collateral-free loans and MSME loans. Notably, the company expanded its reach by adding 61 new branches, reaching a total of 1,164 branches, and welcoming 2.4 lakh new clients in Q2FY24.

Consistent AUM & Disbursement growth – 24.6% YoY/ 14.2% YoY

In Q2FY24, Fusion Micro Finance achieved remarkable milestones, with its Assets Under Management (AUM) surpassing 10,000 Crores to reach 10,026 Crores, reflecting a YoY growth of 24.6% and a QoQ increase of 3.24%. Concurrently, disbursements amounted to 2,344 Crores, growing 14.2% YoY and 2.5% QoQ. The company also witnessed a 15.6% YoY growth in active borrowers, reaching 36.9 lakhs in Q2FY24, compared to 31.9 lakhs in Q2FY23.

NIMs expand 91 bps YoY (+23 bps QoQ) driven by stable CoB at 10.6% in Q2

Fusion Micro Finance displayed a remarkable financial performance, with Net Interest Income (NII) growing 26.1% YoY and 3.5% QoQ to reach 306 Crores. Notably, the Net Interest Margins (NIMs) expanded by 23 bps QoQ and an impressive 91 bps YoY to stand at 11.1%. This expansion was driven by a stable Cost of Borrowing at 10.6%. The Cost-to-Income ratio decreased by 11 bps YoY but increased by 15 bps QoQ to 36.41%. The company also recorded a growth of 140 bps in the Yield on Loans, reaching 21.7%.

Asset Quality Improved & Strong Capital Position (CCRA-28.78%)

In Q2FY24, Fusion Micro Finance showcased an improved asset quality, with a decline in Gross Non-Performing Assets (GNPA) and Net Non-Performing Assets (NNPA) by 52 bps and 13 bps QoQ, respectively, resulting in levels of 2.68% and 0.65%, as compared to 3.83% and 1.12% in Q2FY23. The provision coverage ratio reached 76.39%, and collection efficiency improved by 30 bps QoQ to 97.6% in Q2FY24. The company maintained a robust Capital Adequacy Ratio of 28.78% in Q2FY24, exceeding the RBI’s guidelines of 15%.

Valuation and Key Ratios:

Currently, Fusion Micro Finance’s stock is trading at 2.17 times its book value, which amounts to 256 Rupees per share, at a market price of 575 Rupees. The company’s Return on Equity (ROE) declined by 593 bps YoY and 19 bps QoQ to 20.02%. On the other hand, Return on Assets (ROA) increased to 4.94%, up by 16 bps YoY but down by 5 bps QoQ. The Interest Coverage Ratio stood at 1.85x, indicating the company’s solvency.

Q2FY24 Results Updates:

➡️ In Q2FY24, Fusion Micro Finance experienced notable growth in interest income, which increased by 24.3% YoY and 3.8% QoQ, reaching 497 Crores.

➡️ Interest expenses also saw a YoY growth of 21.4% and a QoQ increase of 4.1% to 191 Crores, resulting in a net interest income of 306 Crores, a growth of 26.14% YoY and 3.5% QoQ.

➡️ NIMs expanded by 91 bps YoY and 23 bps QoQ to 11.1%, primarily due to a stable Cost of Borrowing at 10.6%.

➡️ Pre-provision operating profit (PPOP) grew by 29.1% YoY and 2.7% QoQ, reaching 242 Crores. Total operating expenses increased by 28.5% YoY and 3.4% QoQ, while the cost-to-income ratio declined by 11 bps QoQ.

➡️ Net profit surged by 32.2% YoY and 4.3% QoQ to reach 126 Crores, driven by stable provisions on a QoQ basis at 76.2 Crores (PQ-75.9 Cr).

➡️ Earnings per share (EPS) for the quarter stood at 12.44 Rupees, a growth of 32.2% YoY and 4.3% QoQ.

Conclusion:

Fusion Micro Finance, India’s leading NBFC-MFI, continues to demonstrate impressive growth and financial stability in Q2FY24. With a commitment to empowering underserved women entrepreneurs in rural areas, the company has expanded its branch network, increased its client base, and improved its asset quality. Notably, strong financial performance, expanding NIMs, and a robust capital position underscore Fusion Micro Finance’s resilience and potential for continued success in the microfinance sector.

FB’s Q2FY24 PAT jumps to Rs 954 Cr on lower Provisions

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Flexiloans Bags ₹375 Cr in Series C, Targets ₹5,000 Cr AUM Within 18 Months

Business, Equities, Expert Views, Investor Forum, Market News, Markets, Research, Research Reports, Result Updates - November 7, 2023

LTFH Shifts Focus to retail with Rapid Reduction of Wholesale Loan Book in Q2FY24

Company Overview:

LTFH, a non-deposit taking NBFC, offers a wide range of financial products and services, including 2-wheeler finance, micro loans, home loans, LAP, farm equipment finance, personal loans, and more. As of Q2FY24, the company has established a strong presence in both rural and urban areas, boasting over 1,700 branches in 200,000 villages and 150 branches in 100+ cities and towns. LTFH serves 1.46 crore customers in rural areas and 72 lakh customers in urban areas. The company is well on track to achieve its Lakshya 2026 goal of achieving over 80% retailization, with its current book mix comprising 88% retail and 12% wholesale.

Robust Growth in Retail Disbursement (32% YoY) Driven by HL/Micro Finance/Farm Equipment Financing

Retail disbursements have shown robust growth, increasing by 32% YoY (and 21% QoQ) to reach 13,499 Crores, while wholesale disbursements declined significantly by 76% YoY (and 83% QoQ) to 198 Crores. This has resulted in a 24% YoY increase in total disbursements. In the retail sector, microfinance and home loans grew by 30% YoY and 34%, respectively, while personal loans saw a 2% YoY decrease. The retail loan book stood at 69,417 Crores, reflecting a 33% YoY increase, while the wholesale loan book decreased by 75% YoY to 9,255 Crores, with the total loan book decreasing by 13% YoY (and increasing by 0.21% QoQ). Notably, personal loans and microfinance in the retail loan book reported healthy growth of 63% YoY and 37% YoY, respectively.

Rapid Reduction in Wholesale Book:

LTFH has significantly reduced its wholesale loan book, with the share of wholesale loans decreasing from 49% to 12% in Q2FY24. During this period, the wholesale loan book declined by 75% YoY and 34% QoQ to 9,255 Crores, compared to 14,035 Crores in the previous quarter. Within the wholesale loan book, infrastructure loans decreased to 6,482 Crores, and real estate loans declined to 2,773 Crores over the last three years. As of Q2FY24, the current loan book mix comprises 88% retail and 12% wholesale.

NIMS + Fee & Other Income Jumped 120 bps QoQ

LTFH experienced a significant increase in other income, growing by 83.1% YoY (and 20.4% QoQ) to reach 313 Crores, leading to an expansion of NIMs and fee & other income margins by 120 bps QoQ to 10.84% in Q2FY24, compared to 9.64% in the previous quarter. Net Interest Margins (NIMs) also expanded by 56 bps QoQ to 8.62%, driven by a 49 bps QoQ increase in yield to 15.23%.

Asset Quality Improved with Stable Provisions & Strong Capital Position (CCRA-25.16%)

In Q2FY24, asset quality showed improvement, with a decline in Gross Non-Performing Assets (GNPA) and Net Non-Performing Assets (NNPA) by 16 bps and 3 bps QoQ, respectively, to 3.05% and 0.67%, compared to 3.55% and 0.88% in Q2FY23. GNPA and NNPA stood at 2,116 Crores and 452 Crores in Q2FY24, compared to 1,850 Crores and 446 Crores in Q2FY23. The provision coverage ratio remained unchanged at 79% on a QoQ basis. LTFH maintained a strong capital adequacy ratio, standing at 25.16% in Q2FY24, which exceeds the RBI guidelines of 15%.

Valuation and Key Ratios:

LTFH’s stock is currently trading at a valuation of 1.58 times its book value, which is 89.4 Rupees per share, at the current market price of 141 Rupees. The company reported robust growth in returns, with Return on Equity (ROE) improving by 109 bps QoQ to 10.81%. Return on Assets (ROA) increased to 2.42%, up by 29 bps QoQ. The Interest Coverage Ratio stood at 1.49x, indicating the company’s solvency.

Consolidated Q2FY24 Results Highlights:

➡️ In Q2FY24, Interest income grew 2.6% YoY (+1.6% QoQ) to 3,168 Cr, on back of strong 38.4% growth in revenue from retail segment, though partly offset by decline in wholesale and other business.

➡️ Interest expenses decline 7.8% YoY (-2.8% QoQ) to 1,325 Cr, reaching net interest income (NII) increased 11.8% YoY (+5.1% QoQ) to 1,844 Cr which led to increase NIMS by 56 bps QoQ to 8.62%

➡️ NIMs + Fee & other income margin expanded 241 bps YoY (+120 bps QoQ) to 10.84%.

➡️ Pre-provision operating profit (PPOP) grew 24.2% YoY (+13.4% QoQ) to 1,193 Cr driven by stable other OPEX at 515 Cr (PQ-519.9 Cr)

➡️ Net profit surged 64.9% YoY (+12% QoQ) to 594 Cr, helped by reduction in provision by 2.2% YoY. Adjusted PAT grew 64.8% YoY.

Conclusion:

In Q2FY24, LTFH demonstrated robust growth in its retail segment, with significant reductions in the wholesale loan book. The company achieved strong net interest margins and fee & other income margins, leading to improved profitability. Asset quality improved, and the company maintained a strong capital position. These positive trends resulted in a substantial increase in net profit. Overall, LTFH’s performance in Q2FY24 reflects its successful transition towards retailization and its commitment to sound financial management.

FB’s Q2FY24 PAT jumps to Rs 954 Cr on lower Provisions

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Zomato Q3FY25: Strong GOV Growth Amid Profitability Pressures

Business, Equities, Expert Views, Investor Forum, Market News, Markets, Research, Research Reports, Result Updates - November 6, 2023

Zomato's Q2FY24: Savoring success - GOV surges, Gold glitters

Zomato’s Q2FY24: Savoring success – GOV surges, Gold glitters

Company Overview:

Zomato Limited, founded in 2010, is one of the biggest online Food Service platforms in terms of food value sold. Its services include meal delivery, dining out, and loyalty programs, among others. Zomato had a significant footprint across 23 countries as of December 31, 2020, with 131,233 active food delivery restaurants, 161,637 active delivery providers, and an average monthly food order of 10.7 million clients. Zomato also operates Hyper pure, a one-stop procurement system that provides high-quality ingredients and kitchen goods to restaurant partners.

Zomato Q2FY24: GOV Up 47%, EBITDA Profitable at INR 41 Crore

Zomato’s consolidated Q2FY24 results were positive, with strong growth across key metrics. GOV (B2C business) grew 47% year-over-year to INR 11,422 crore, driven by strong growth in order volume. Adjusted revenue grew 53% year-over-year to INR 3,227 crore. Adjusted EBITDA improved significantly from a loss of INR 192 crore in Q2FY23 to a profit of INR 41 crore in Q2FY24.

The strong GOV growth was driven by increased demand for food delivery and quick commerce services. Zomato’s Gold program also played a key role, contributing to over 40% of food delivery GOV. The improvement in adjusted EBITDA margin was driven by a number of factors, including increased gross take rate, improved operational efficiency, and reduced costs. Zomato’s is focused on expanding their reach into smaller towns, increasing their customer base, and improving their operational efficiency.

Zomato Gold Soars to 3.8 Million Members, Boosts GOV by 40%

Zomato’s Gold program is shaping up very well. It has scaled to 3.8 million members within just three quarters since its launch, and these members now account for ~40% of the company’s food delivery GOV. This suggests that the program is highly popular with customers and is driving significant business for Zomato. The Gold program offers a number of benefits to members, including discounts on food delivery orders and priority access to restaurants. This makes it a very attractive proposition for customers, especially those who order food delivery frequently.
The fact that Gold members account for such a large proportion of Zomato’s food delivery GOV is a significant positive. It shows that the program is driving loyalty and repeat business among customers. This is important for Zomato, as it helps to reduce the cost of customer acquisition and retention.

Zomato’s Blinkit Turns Contribution Positive in Q2FY24, Margin Improves to 1.3%

For the first time, the quick commerce (Blinkit) business turned Contribution positive for the full quarter in Q2FY24. The business’s contribution margin (as a percentage % of GOV) has increased from -7.3% in Q2FY23 last year (when we acquired the business) to +1.3% today in Q2FY24. Blinkit’s same-store sales grew in Q2FY24, which indicates that existing stores are serving more customers and generating more revenue. This is a positive sign, as it suggests that the company’s unit economics are improving. Blinkit also added 28 new stores in Q2FY24, bringing its total store count to 411. This expansion is helping the company to reach more customers and grow its business.

Valuation and Key Ratios:

Zomato’s stock is currently trading at a valuation of 5.25 times its book value of Rs. 22.9 per share at the current market price of Rs. 116. The company reports an ROE of -5.91 % and ROA of -5.46 % in Q2FY24. The interest coverage ratio stood at -7.63x in Q2FY24, indicating the company’s solvency, while the current ratio stood at 3.93x in Q2FY24. The P/B ratio for the company is 5.06.

Financial Performance Highlights for Q2FY24:

The quarter’s net profit declined year on year (YoY), with a loss of 497 crores in Q2FY24 compared to a profit in the same period last year. The company’s EV/EBITDA ratio increased QoQ, rising to 2,045 in Q2FY24 from Q2FY23. Despite a negative PAT of 497 crores in Q2FY24, the company managed to reduce its losses as compared to the previous quarter. The Price to Book Value ratio scaled significantly year on year, reaching 5.25 in Q2FY24 from a lower ratio in the same quarter last year. Earnings per share (EPS) improved significantly from quarter to quarter (QoQ), with the company reporting a loss of -0.58 in Q2FY24 compared to a greater loss in the prior quarter.

Conclusion:

Zomato’s second-quarter FY24 results were mixed, with great rise in GOV and EBITDA but a sustained loss in net profit. The company’s Gold program is operating effectively and increasing client loyalty. The Blinkit firm is also profitable, which is a good indicator. Zomato’s values, however, remain high in comparison to its financial performance. Overall, the organization is still in the investment phase, with the goal of growing its reach and boosting profitability.

HDFC Bank’s Q2FY24 PAT reached INR 159 bn driven by strong loan growth

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UGRO Capital Acquires Profectus Capital in Ambitious ₹1,400 Crore Deal

Business, Equities, Expert Views, Investor Forum, Market News, Markets, Research, Research Reports, Result Updates - November 6, 2023

FB's Q2FY24 PAT jumps to Rs 954 Cr on lower Provisions

FB’s Q2FY24 PAT jumps to Rs 954 Cr on lower Provisions

Company Overview:

Federal Bank is engaged in providing a wide range of banking and financial services, including commercial banking, retail and corporate banking, working capital finance, insurance, and treasury products and services. In the Q2FY24, the bank expanded its branch network by adding 23 new branches, bringing the total count to 1,389 branches. The bank has a customer base of 1.72 crore and is supported by a workforce of 14,270 employees.

Strong Business Growth:

Federal Bank experienced significant growth in its deposit base, with a 23.1% year-on-year (YoY) and 4.7% quarter-on-quarter (QoQ) increase. This outpaced its loan growth, which saw a 19.6% YoY and 5.1% QoQ growth. The growth in deposits was primarily driven by an increase in term deposits, resulting in a 67 basis point (bps) QoQ decline in the CASA ratio to 31.2%. Loan growth was supported by healthy rises in retail (6% QoQ), commercial (7%), and agricultural (8%) businesses. Additionally, Commercial Vehicles/Construction Equipment (CV/CE) and Microfinance Institutions (MFI) segments performed well, growing 11% and 27% QoQ, although on a lower base. The bank’s management has reaffirmed its guidance for loan and deposit growth of 18-20% for FY24.

NIM contracted by 14 bps YoY but improved by 1 bps QoQ

Federal Bank’s Net Interest Income (NII) increased by 7.18% QoQ and 16.72% YoY, with the reported NIM improving by 1 bps QoQ to 3.16% due to a 14 bps QoQ increase in yield to 9.35%. The bank’s management has revised its NIM guidance for FY24 to 3.25% from 3.3% to account for the expected increase in deposit costs by 18-20 bps. The Cost-to-Income (C/I) ratio increased to 52.5% in Q2, up from 50.9% in Q1. The bank anticipates that operational costs will remain elevated due to its decision to invest in network expansion and branding to capitalize on increased volumes.

Slippages up 81 bps QoQ but asset quality remains stable – GNPA/NNPA – 2.3%/0.6%

Despite a slight increase in slippages of 81 bps QoQ, Federal Bank maintained stable asset quality. GNPA and NNPA stood at 2.3% and 0.6%, respectively, down from 2.4% and 0.7% in Q1, with PCR of 72.3%. The bank’s credit cost dropped to one of the lowest levels in the sector at 9 bps, compared to 35 bps in Q1 and 68 bps in Q2FY23. As a result, the bank reported higher-than-expected Profit After Tax (PAT) growth of 12% QoQ and 35% YoY.

Valuation and Key Ratios:

Federal Bank’s stock is currently trading at a valuation of 1.37 times its book value of Rs 105 per share at the current market price of Rs 144. The company reported healthy growth in returns, with Return on Equity (ROE) improving by 136 bps YoY (with a slight decrease of 1 bps QoQ) to 15.72%. Return on Assets (ROA) increased to 1.36%, up by 15 bps YoY and 6 bps QoQ. The Interest Coverage Ratio stood at 1.4x, indicating the company’s solvency.

Standalone Q2FY24 Results Highlights:

➡️ Interest income increased by 35.6% YoY and 8.57% QoQ to Rs 5,455 crore, while interest expenses grew by 50.4% YoY and 9.4% QoQ to Rs 3,398 crore, resulting in net interest income of Rs 2,056 crore, a growth of 16.7% YoY and 7.1% QoQ.

➡️ Other income rose by 19.8% YoY to Rs 730 crore, and the bank expects this run-rate to continue in the future.

➡️ Pre-Provision Operating Profit (PPOP) increased by 9.2% YoY and 1.70% QoQ to Rs 1,324 crore, driven by the rise in the C/I ratio to 52.5% in Q2 compared to 50.9% in Q1. The bank anticipates elevated operational costs due to its strategic investments in network expansion and branding.

➡️ PAT surged by 35.5% YoY and 11.7% QoQ to Rs 954 crore, primarily due to a significant reduction in provisions, down by 83.6% YoY and 71.7% QoQ to Rs 44 crore.

➡️ Earnings Per Share (EPS) stood at Rs 4.17, reflecting a growth of 24.8% YoY and 3.4% QoQ.

Conclusion:

Federal Bank is a prominent banking institution known for providing a wide array of banking and financial services, which encompass commercial banking, retail and corporate banking, working capital finance, insurance, and treasury products and services. In the second quarter of FY24, the bank strengthened its presence by adding 23 new branches, expanding its total branch network to 1,389. With a substantial customer base of 1.72 crore and a dedicated workforce of 14,270 employees, the bank is well-equipped to serve a diverse range of clients. In conclusion, Federal Bank stands as a reliable and expanding financial institution, poised for continued growth and success in the industry.

Q2FY24: Shriram Finance reports robust AUM growth Drives NII soars to 4,594 Cr

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Business, Equities, Expert Views, Investor Forum, Market News, Markets, Research, Research Reports, Result Updates - November 6, 2023

Delta Corp's Casino Business sustains Financials in Q2FY24

Delta Corp’s Casino Business sustains Financials in Q2FY24

Company Overview:

Delta Corp Ltd is India’s sole publicly listed gaming and hospitality company, involved in casino gaming, hospitality, and online skill gaming. It operates casinos in Goa, Daman, and Sikkim and expanded into the global market with a casino at the Marriott Hotel in Kathmandu, Nepal. The company offers online skill gaming through Adda52.com, Adda52Rummy.com, and Adda.games and operates two hotels in Daman and Goa.

Casino Gaming EBITDA Decline Despite Revenue Surge in Q2:

In Q2FY24, the casino segment reported gross revenue of 283 Cr, contributing 84% of the total revenue, marking a 3.44% YoY growth (+1.95% QoQ) from the previous quarter’s 273 Cr. However, despite revenue growth, the segment’s EBITDA (revenue minus expenses) declined by 4.60% YoY (-2% QoQ) to 89.46 Cr due to increased expenses. EBITDA margins dropped by 260 bps YoY and 130 bps QoQ due to rising costs.

Online Gaming Reports Negative EBITDA: -1.64 Cr (Down 21.15% YoY and 80.95% QoQ):

In Q2FY24, the online gaming segment saw a 13.90% YoY decline (1.35% QoQ) in gross revenue, with 42.54 Cr, contributing 13% of the total revenue, compared to the previous quarter’s 43.12 Cr. The segment reported negative EBITDA (revenue minus expenses) of -1.64 Cr, reflecting a 21.15% YoY decrease and an 80.95% QoQ decrease.

Hospitality Segment Reports Negative Results: -4.18 Cr (Down 117% QoQ)

In Q2FY24, the hospitality segment reported revenue of 9.95 Cr, contributing 3% of the total revenue. This marked an 8.21% YoY decline and a significant 42.08% QoQ decrease. EBITDA (revenue minus expenses) reported a negative figure of -4.18 Cr, reflecting a 26.92% YoY decline and a substantial 117.71% QoQ decrease due to increased costs.

Valuation and Key Ratios:

Currently, the stock is trading at a multiple of 13.2x EPS (TTM) 10.2 at the current market price of 135, with the industry PE standing at the same 13.2x. The stock is trading at 1.54 times its book value of 87.7 Rs per share. The company reports healthy return ratios, with ROE at 12.4% and ROCE at 16.3%. The interest coverage ratio stands at 34.2x, indicating a high level of solvency for the company.

Q2FY24 Results Update: Consolidated Performance Sustained by Casino Business

➡️ In Q2FY24, consolidated revenue showed a modest 0.23% YoY growth (-0.81% QoQ), reaching 270 Cr compared to 272 Cr in the previous quarter, primarily driven by the growth in casino gaming.

➡️ EBITDA declined by 0.26% YoY but increased by 4.45% QoQ, reaching 100 Cr compared to 96 Cr in the previous quarter. EBITDA margins increased by 180 bps QoQ, remaining stable on a YoY basis, at 36.99%, mainly due to a 4.26% QoQ decline in total operating expenses.

➡️ EBIT income decreased by 2.62% YoY but grew by 4% QoQ to 83 Cr, with EBIT margins expanding by 140 bps QoQ to 30.72%, benefiting from improved operating efficiency.

➡️ PAT grew by 1.74% YoY and 2.25% QoQ, reaching 69 Cr, sustained by the growth in the casino business, while PAT margins increased by 77 bps QoQ and 38 bps YoY.

➡️ EPS for the quarter stood at 2.59 Rs (PQ-2.53), representing a 1.74% YoY growth and a 2.25% QoQ increase.

Conclusion:

Delta Corp Ltd, India’s leading gaming and hospitality company, experienced mixed results in Q2FY24. While the casino business showed revenue growth, challenges in the online gaming and hospitality segments led to declining EBITDA. The company’s stock valuation and return ratios remain healthy. Delta Corp must address cost issues in these segments to ensure more balanced and sustainable financial performance.

Q2FY24: Shriram Finance reports robust AUM growth Drives NII soars to 4,594 Cr

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Business, Equities, Expert Views, Investor Forum, Market News, Markets, Research, Research Reports, Result Updates - November 6, 2023

HDFC Bank's Q2FY24 PAT reached INR 159 bn driven by strong loan growth

HDFC Bank’s Q2FY24 PAT reached INR 159 bn driven by strong loan growth

Company Overview:

HDFC Bank, the largest private sector bank in India, offers a diverse range of banking and financial services. Their portfolio includes retail loans such as home loans, LAP, 2-wheeler loans, personal loans, as well as wholesale loans for corporates, businesses, and agriculture. In Q2FY24, retail loans accounted for 51% of the loan book, while wholesale loans constituted the remaining 49%. The company expanded by adding 85 net new branches, increasing their total to 7,945 compared to 6,499 in Q2FY23, with a total customer base of 91 million, marking a 7% QoQ growth.

Deposit grew 5.3% QoQ (merged basis) which reduce CASA to 37.6% in Q2

During Q2FY24, deposits increased by 5.3% QoQ (on a merged basis), reaching 21,729 billion, while the loan book grew by 4.9% QoQ (on a merged basis) to 23,328 billion. The increase in term deposits resulted in a reduced CASA ratio of 37.6%. Gross advances stood at 23,546 billion, growing by 4.9% QoQ (on a merged basis). Retail deposits accounted for 83% of the total, with the remaining 17% being wholesale deposits in Q2FY24.

Loan book up 5.5% QoQ driven by Retail and CRB in Q2

In Q2FY24, the retail loan book expanded by 3.1% QoQ (a remarkable 106.62% YoY) to 11,995 billion, while the CRB (Corporate, Retail, and Business Banking) loan book grew by 9.7% QoQ (29.46% YoY) to 7,052 billion. Among the retail loans, credit card and personal loans grew by 0.5% and 1.1% QoQ, respectively, while gold and other retail loans displayed robust growth at 7.8% and 7.2% QoQ in Q2FY24. In the CRB segment, agriculture and business banking demonstrated strong growth at 13.6% and 10% QoQ, while corporate loans increased by 5.8% QoQ.

NIMS Contraction – 70 bps QoQ to 3.65% Impact of High CoF

Net Interest Margins (NIMs) declined by 70 basis points (bps) QoQ, reaching 3.65%, primarily due to an 80 bps increase in the cost of funds (CoF) QoQ (150 bps YoY), which stood at 4.8%. This increase in CoF was attributed to excess liquidity in the merged arm of HDFC Bank, which incurred higher costs. On the other hand, the yield on loans rose by 135 bps QoQ (218 bps YoY) to 9.7%, resulting in a spread of 3.26%, reduced by 35 bps QoQ (42 bps YoY).

Slight Increase in GNPA/NNPA- 17bps QoQ/5bps QoQ

Asset quality experienced a minor decline in Q2FY24, with Gross Non-Performing Assets (GNPA) and Net Non-Performing Assets (NNPA) increasing by 17 bps QoQ and 5 bps QoQ, respectively, to 1.31% and 0.35%. The amounts for GNPA and NNPA stood at 3,15,799 million and 80,728 million, respectively. The provision coverage ratio remained at 74.4%, compared to 74.9% in the previous quarter. Capital Adequacy Ratio (CAR) continued to be strong at 19.54% in Q2FY24, exceeding the RBI guidelines of 15%.

Valuation and Key Ratios:

As of the current market price of 1,489, the stock is trading at 2.87 times its book value of 519 per share. The company reported healthy return ratios in Q2FY24, with Return on Assets (ROA) at 2%, Return on Equity (ROE) at 16.2%, and an Interest Coverage Ratio of 1.65x, signifying the company’s solvency.

Q2FY24 Results Updates: Standalone

➡️ In Q2FY24, interest income surged by 75.45% YoY (39.33% QoQ) to 676,984 million, while interest expenses increased by 129.51% YoY (61.33% QoQ) to 403,132 million, resulting in Net Interest Income (NII) of 273,852 million, growing by 30.27% YoY (16.04% QoQ).

➡️ The healthy growth in NII was driven by the high yield on loans, which increased by 135 bps QoQ and 218 bps YoY.

➡️ Total income in Q2FY24 increased by 33.11% YoY (16.03% QoQ) to 380,930 million, led by a 40.97% YoY and 16.04% QoQ increase in other income.

➡️ Pre-Provision Operating Profit (PPOP) income grew by 30.48% YoY (20.89% QoQ) to 226,938 million, driven by operating efficiency. The cost-to-income ratio dropped by 240 bps QoQ.

➡️ Profit After Tax (PAT) surged by 50.64% YoY (33.67% QoQ) to 159,761 million, resulting in Earnings Per Share (EPS) for the quarter standing at 21 Rs, growing by 10.53% YoY and remaining stable on a QoQ basis.

Conclusion:

HDFC Bank, India’s largest private sector bank, reported positive Q2FY24 results with healthy growth in deposits and advances. The bank’s loan book showed significant expansion in both retail and corporate segments, and while there was a slight contraction in net interest margins due to higher cost of funds, the overall financial performance remained robust. Asset quality remained stable, and the bank continued to maintain a strong capital adequacy ratio. With a trading valuation at 2.87 times book value and healthy return ratios, HDFC Bank continues to demonstrate its resilience and strength in the Indian banking sector.

Q2FY24: Shriram Finance reports robust AUM growth Drives NII soars to 4,594 Cr

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Jio’s Giant Leap: Reliance Confirms IPO in Early 2026

Business, Equities, Expert Views, Investor Forum, Market News, Markets, Research, Research Reports, Result Updates - November 3, 2023

RIL Reports Strong Q2FY24 Performance Across Diverse Business Segments

Company Overview:

Reliance Industries Ltd is a conglomerate engaged in multiple sectors, including Oil to Chemicals (O2C), Oil and Gas, and Retail, encompassing electronics, fashion & lifestyle, grocery, and beverages, as well as Digital services. Notably, within the Digital Business, Jio stands out, contributing a significant 85% to the overall 5G capacity and ranking as India’s top 5G network. In the retail sector, footfalls reached a remarkable 260 million, showing a 41% YoY increase, and 471 new stores were added, bringing the total count to 18,650 in Q2FY24.

Retail segment achieved record EBITDA, up 41% YoY, with 260 million footfalls and an 80 bps margin expansion in Q2

In Q2FY24, the Retail segment reported revenue of 77,163 Cr, a robust 18.8% YoY growth (+10.29% QoQ). This growth was primarily attributed to the strong performance in the grocery business, which experienced a 33% YoY increase. EBITDA reached 5,820 Cr, reflecting a strong 32.10% YoY growth, with contributions from grocery and fashion & lifestyle consumption. EBITDA margins expanded by 80 basis points YoY to 7.56%, driven by festive demand. Notably, the company added 2,033 new stores YoY, including 471 new stores in Q2FY24, bringing the total count to 18,650. Footfalls reached an impressive 260 million, marking a 41% YoY increase, and registered customers grew by 27% YoY, totaling 281 million.

Digital service Growth led by strong subscriber addition-32.1 Mn YoY (11.1 Mn in Q2) & growing 5G adoption

The Digital service business reported revenue of 32,657 Cr, reflecting a growth of 10.48% YoY (+1.81% QoQ). This growth was driven by a robust net subscriber addition of 32.1 million YoY and 11.1 million in Q2FY24. EBITDA increased by 14.48% YoY (2.55% QoQ) to 14,071 Cr, with EBITDA margins expanding by 150 basis points YoY to 43.09%. The Average Revenue Per User (ARPU) grew by 2.6% YoY, reaching 181.7 Rs, with a total of 459.7 million subscribers. The company also experienced substantial growth in data traffic, which increased by 28.5% YoY to 36.3 Exabytes, driven by the growing adoption of 5G and higher engagement on home STB. Notably, over 70 million subscribers migrated to 5G, and 8,000 towns were covered with true 5G.

Robust O2C EBITDA Growth supported by strong domestic demand and tight fuels market

In Q2FY24, minor improvement in asset quality with GS3/NS3 declining to 1bps/9bps QoQ to 4.29%/1.71% with amounting GS3/NS3 stood at 4,024 Cr/1,562 Cr. Stage 2 declined 60 bps QoQ to 5.7% this resulted in 30+ dpd improving 70 bps QoQ to 10% and current level of write-off stood at 351 Cr in Q2FY24. Provision coverage on stage-3 assets stood at 61.2% against 60.1% in previous quarter. CAR strongly stood at 18.70% in Q2FY24 which is above the RBI guidelines 15%.

KG D6 gas production added sharp improvement in oil and gas Business in Q2

In Q2FY24, the Oil and Gas business reported robust revenue of 6,620 Cr, showing a significant 71.8% YoY growth (+42.9% QoQ), primarily due to the strong production from the KG D6 block, reaching 68.3 MMSCMD, marking a 65.8% YoY increase compared to 19 MMSCMD in Q2FY24. The Oil and Gas segment reported an all-time high EBITDA, growing by 50.3% YoY (+18.7% QoQ) to 4,766 Cr, driven by higher volumes and an improvement in price realization on a YoY basis. However, EBITDA margins declined by 10.31% YoY (-14.69% QoQ) to 71.99% in Q2 due to costs related to MJ field commissioning and decommissioning of the Tapti field.

Valuation and Key Ratios:

Currently, the stock is trading at a multiple of 23x EPS (TTM) of 101 Rs, with a current market price of 2,320 Rs, and an industry price-to-earnings ratio of 11.1x. The company reports an ROE of 2.27% and ROA of 1.18% in Q2FY24. The interest coverage ratio stood at 5.63x in Q2FY24, indicating the company’s solvency, while the current ratio stood at 1.16x in Q2FY24.

Q2 FY24 Results Highlights: Consolidated

➡️ In Q2FY24, consolidated revenue grew by 1.08% YoY (+11.44% QoQ) to 2,31,886 Cr, primarily due to lower O2C revenues with a 14% decline in crude oil.

➡️ Consolidated EBITDA increased by 31.98% YoY (+7.55% QoQ) to 40,968 Cr, with solid growth across all operating segments. EBITDA margins were up by 400 basis points YoY to 17.67%, due to a decline in the cost of goods sold (COGS) by 4.03% YoY but maintained a 0.69% QoQ.

➡️ PAT surged by 28.15% YoY (+8.87% QoQ) to 19,878 Cr while PAT growth in consumer business tempered by higher depreciation with growth in asset and higher network utilisation. PAT margins expanded 180 bps YoY (stable on QoQ basis) to 8.57%

➡️ Interest cost grew 25.85% YoY (-1.82% QoQ) to 5,731 Cr with gross debt stood at $35,606 Mn and net debt at $14,176 Mn. Capex stood at 38,815 Cr primarily towards 5G roll-out and building retail ecosystem.

➡️ Earnings per share (EPS) for the quarter stood at 29.36 Rs, representing significant 28.15% YoY and 8.87% QoQ growth.

Conclusion:

Reliance Industries Ltd has demonstrated strong performance across its diversified business segments, with remarkable growth in Retail, Digital services, and Oil and Gas. The company’s robust financials and its focus on expanding its 5G network and retail presence position it favorably for future growth and sustainability.

Q2FY24: Shriram Finance reports robust AUM growth Drives NII soars to 4,594 Cr

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Business, Equities, Expert Views, Investor Forum, Market News, Markets, Research, Research Reports, Result Updates - November 3, 2023

After a strong Q2 in FY24 REC is ready for the rerating saga

Company Overview:

REC Limited (formerly Rural Electrification Corporation Limited) is a non-banking financial company (NBFC) under the administrative control of the Ministry of Power, Government of India. It is also registered with the Reserve Bank of India (RBI) as a public financial institution (PFI) and an infrastructure financing company (IFC).
REC was incorporated in 1969 to finance and promote rural electrification projects in India. Over the years, it has expanded its scope of business to include financing of the entire power sector, including generation, transmission, and distribution. REC also finances projects in the renewable energy and infrastructure & logistics sectors.

REC’s Q2 earnings soar on lower costs and higher margins:

REC Limited’s Q2FY24 earnings were strong on all counts, with a 17bps QoQ NIM uptick, provision reversal of ~INR 5bn, and high 20% YoY loan growth. The company is upbeat on growth guidance of 20% YoY, NIM steadying at 3.5%, and anticipated provision reversals for FY24, which signals strong book value accretion and potential valuation multiple re-rating.
a. NIM uptick: REC’s NIM uptick was driven by asset re-pricing across products, with yields climbing 15bps QoQ, and a favourable liability mix with ~40% borrowings being priced at ~7% (23bps lower than average CoF).
b. Provision reversal: REC reversed provisions of ~INR 5bn, including standard asset provisions created on grounds of prudency during the pandemic and ~INR 2.5bn write-backs led by resolutions of two assets.
c. Loan growth: REC’s loan growth accelerated to 20% YoY after a hiatus of four years, largely led by renewables, LPS, and infra portfolios.
d. Outlook: REC is upbeat on growth guidance of 20% YoY, NIM steadying at 3.5%, and anticipated provision reversals for FY24. This signals strong book value accretion and potential valuation multiple re-rating.

RECL’s loan growth surges on renewables, non-power sectors; FY24E-26E outlook upbeat:

RECL (presumably a financial institution) recorded a strong loan growth of 4% quarter-over-quarter (QoQ) and 20% year-over-year (YoY). This growth was largely driven by non-power loans in sectors like infrastructure, logistics, and e-mobility, as well as loans related to LPS (possibly referring to Loan Protection Scheme) and renewables.
The renewables sector constitutes 7% of RECL’s assets, approximately INR 300 billion. There is an expectation that this figure may increase significantly to INR 3 trillion by FY30 (fiscal year 2030). This growth could be triggered by a recent Memorandum of Understanding (MoU) worth INR 280 billion and the government’s goal to increase the share of renewables to 30% of the mix by FY30. Additionally, Q2 saw 25% of overall loan sanctions coming from renewables.
The non-power sector’s share in RECL’s portfolio has increased from 8% in Q1 to 13% of the mix. RECL is actively expanding its capabilities in terms of talent, skillsets, and pricing strategies, with a focus on state-backed, low-risk assets. The report suggests that RECL anticipates a higher loan Compound Annual Growth Rate (CAGR) of 19% in the fiscal years FY24E-26E. This expectation is based on the quality of renewable corporate clients and high-value infrastructure projects, which provide a robust outlook for the business.

RECL aims to maintain steady NIMs, write-backs to boost FY24 profits:

RECL is aiming to maintain steady NIMs. They are working to control credit costs with the goal of achieving a 0% net Non-Performing Asset (NPA) ratio by FY25. It’s noteworthy that RECL has not experienced any slippages in the past seven quarters, and they expect write-backs in FY24.
In the second quarter (Q2), RECL reported that Stage 3 assets, which typically refer to non-performing or impaired assets, stood at a five-year low of 3.14%. At the moment, there are 19 stressed projects with a total value of INR 149 billion in Stage 3. Out of these, five projects worth INR 18.8 billion are being pursued for resolution outside the National Company Law Tribunal (NCLT), and the remaining 14 projects worth INR 130 billion are undergoing resolution within NCLT. It is estimated that there will be a build-up of Gross Non-Performing Assets (GNPA) in the range of 2-2.4% and write-offs during FY24E-26E.

Valuations: Analyst sees 30% upside in RECL:

Despite recent price momentum, RECL is seen as having the potential for further re-rating. This is attributed to the company’s high double-digit growth visibility, positive performance in Q2, and the ability to maintain steady margins in a challenging funding environment. Additionally, the significant write-backs are expected to lead to a high return profile with an anticipated Return on Equity (RoE) of 18-19% and Return on Assets (RoA) of 2.8% in the fiscal years FY24-26E. In light of these positive factors, there has been a revision of the estimates for FY24E and FY25E, with an increase of 15% or more for each of these fiscal years.

REC Ltd Reports Strong Q2FY24 Result:

REC Ltd reported net sales of Rs 11,688.24 crore in September 2023, reflecting a significant increase of 17.4% compared to the same period in September 2022 when it was Rs 9,955.99 crore. The company’s quarterly net profit for September 2023 amounted to Rs 3,789.90 crore, indicating substantial growth of 38.72% from the figure of Rs 2,732.12 crore in September 2022. The EBITDA for September 2023 were reported at Rs 12,193.52 crore, showing strong growth of 32.98% from the EBITDA of Rs 9,169.73 crore in September 2022. REC Limited has a market capitalization of ₹79,668 Crores, reflecting the total market value of its outstanding shares. The stock’s Price-to-Earnings (P/E) ratio stands at 6.19, indicating its valuation in relation to its earnings. A lower P/E ratio suggests potential undervaluation. REC Limited’s Return on Capital Employed (ROCE) is 9.14%, showcasing its profitability relative to the total capital employed in the business. The company reported a Profit after Tax of ₹12,739 Crores, representing its net income after accounting for all expenses and taxes. REC Limited has a Price to Book Value (P/B) ratio of 1.25, implying that the current market price of the stock is slightly higher than its book value per share.

Conclusion:

REC Limited, a government-controlled financial company, posted impressive Q2FY24 results. The highlights include a remarkable 17.4% YoY increase in revenue, reflecting strong growth. Notably, the company saw an uptick in Net Interest Margin (NIM), provision reversals, and a substantial rise in loan growth. REC is confident about its future, with a projected 20% YoY growth and stable NIM. The surge in loan growth was primarily fuelled by non-power sectors, and REC anticipates a higher growth rate in loans for FY24-26E. They are also focused on maintaining NIMs and managing non-performing assets.

Q2FY24: Shriram Finance reports robust AUM growth Drives NII soars to 4,594 Cr

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Business, Equities, Expert Views, Investor Forum, Market News, Markets, Research, Research Reports, Result Updates - November 2, 2023

Indian stock surge draws investors leaving China

India is expected to become the world’s third-largest economy by the end of the decade, with projections indicating a robust annual average real GDP growth of 6 percent, outpacing mostother major economies. This forecast comes from the consultancy firm Capital Economics. The Indian stock market has been on a tear in recent months, with the benchmark Sensex index rising by over 20% since the start of the year. This surge has attracted a wave of foreign investment, with many investors choosing to leave the Chinese market and invest in India instead.

Fertile Investing Ground

India’s economy and stock market have been doing well recently and India has also
outperformed china. The MSCI India index, which measures the performance of Indian stocks,has gone up by 7.5% this year, while the MSCI China index, which tracks Chinese stocks, has gone down by 7.6%. Over the last five years, Indian stocks have risen by 63%, while Chinese stocks have fallen by 18%. India’s economy is growing faster than China’s, with a growth rate of 7.8% in the June quarter, compared to China’s growth rate of 6.3%.

Foreign investors have been moving their money from Chinese stocks to Indian stocks, even though Indian stocks are more expensive and has higher valuations. This is because China’s economy hasn’t rebounded as strongly as expected, which has raised concerns about deflation (a decrease in prices) and made investors less confident in the Chinese market.

“India’s markets seem really encouraging and promising. They’re experiencing substantial growth, and there’s a lot of money being invested in building infrastructure. India is one of the fastest-growing economies. On the other hand, in China, we’re seeing issues in the property sector,” explained Jonathan Curtis from Franklin Templeton during his recent trip to India.

Indian stocks have outshined Chinese stocks by a significant amount. This is thanks to the billions of dollars invested by foreign funds and a growing number of individual investors who have tripled in number since the pandemic started.

Allocators Enticed

Foreign fund managers, who handle a lot of money (billions of $), are taking their investments out of Chinese stocks and putting some of it into Indian stocks, even though Indian stocks are considered relatively expensive. In August, they withdrew around $12 billion from Chinese stocks, while India received approximately $1.5 billion in investments, with a significant portion going into financial stocks.

China’s economy, which was expected to rebound strongly after the pandemic, hasn’t
performed as well as anticipated. This is due to problems in the housing market and increasing local government debt. Chinese households are saving more, which is leading to weaker domestic demand. This economic uncertainty has made investors less confident and has put pressure on stock prices. Experts have noted that China is different from other countries in its post-pandemic recovery because it’s facing a risk of prices falling instead of rising. This uncertainty about investing in China has opened up an opportunity for India.

India’s economic foundation looks good, despite challenges like geopolitical tensions, rising prices, and supply chain disruptions. In September, foreign investors sold about $1.8 billion worth of Indian stocks, but the Sensex (an Indian stock market index) still rose by 1,000 points in the same month, thanks to continued investments from local investors, particularly mutual funds.

Indian markets are not heavily dependent on China’s weakness, there are other reasons for their strength. The growing number of individual investors in India plays a significant role. Additionally, consistent investments through mutual funds are considered a healthy trend. Strong corporate earnings growth is also attracting investors. Hong Kong-based brokerage CLSA recently upgraded its view on India, saying it plans to allocate more weightage to India compared to what index management company MSCI suggests. They’re moving money out of China and Australia to invest more in India.

Investment Destinations

India’s technology sector is a popular choice for investment due to its successful digitization efforts and a tech-savvy population. The nation’s strong education system and English speaking workforce have contributed to this tech focus, with Indian-born
CEOs leading major U.S. tech companies.

Early-stage venture capital is a way for investors to enter India’s tech scene, with success stories like Flipkart, an e-commerce company, valued at around $40 billion after being acquired by Walmart. However, India’s investment landscape can be less liquid, making it challenging to find buyers for venture-backed companies.

The growing Indian financial sector is appealing to foreign investors, with HDFC Bank and Bajaj Finance stocks being popular choices. Infrastructure is another promising area for investment, thanks to government initiatives like the Delhi Mumbai Expressway project, which will significantly reduce travel times. One significant factor driving India’s growth is its young population, which is expected to contribute to a robust GDP and make India the world’s second-largest economy by 2070, according to a Goldman Sachs study. Investing in India today may be a wise choice if this bright future unfolds as predicted.

https://www.equityright.com/indias-soaring-success-dedicated-india-funds-outperforming-emerging-markets/

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