business update, Health - July 9, 2025

Apollo Hospitals Boosts Digital Oncology with Acquisition

Apollo Hospitals Boosts Digital Oncology with Acquisition

With the strategic acquisition of cancer care platform Onco, Apollo Hospitals deepens its digital healthcare capabilities as it gears up for the demerger of Apollo HealthCo.

Summary:
Apollo Hospitals has quietly acquired healthtech startup Onco, which is backed by marquee investors like Accel and Rainmatter. While the financial terms remain undisclosed, sources confirm that the deal was closed in December 2024. This acquisition reinforces Apollo’s growing focus on digital healthcare and cancer care, especially as it prepares for the demerger of its pharmacy and digital platform arm, Apollo HealthCo.

Apollo Hospitals Expands Its Digital Health Footprint
India’s healthcare giant, Apollo Hospitals, has taken a strategic step forward in its digital transformation journey with the acquisition of Onco, a healthtech startup that offers end-to-end cancer care services. While the financial details of the transaction have not been officially disclosed, sources close to the matter revealed that the deal was completed in December 2024.
The acquisition marks a significant milestone in Apollo’s plan to strengthen its digital healthcare capabilities, particularly in oncology, a field that continues to see rising demand and innovation.

About Onco: Empowering Personalised Cancer Care
Founded in 2016 by Dr. Amit Jotwani, an oncologist, and Siddhartha Jain, a former VC and entrepreneur, Onco.com was designed to simplify and democratize cancer treatment by providing patients with access to expert advice, personalised treatment plans, and coordinated care services.
Over the years, Onco has built a robust ecosystem that includes:
– A virtual tumour board to provide multi-disciplinary opinions
– A care management team that supports patients throughout their treatment
– A service that links patients to oncologists, medical facilities, and diagnostic laboratories.
The platform has served over 100,000 cancer patients across India and abroad, becoming a go-to resource for people looking for trusted and comprehensive cancer support. Its services span various stages of cancer, from diagnosis and treatment to post-treatment care and second opinions.

Backed by Prominent Investors
Onco has secured more than $13 million from prominent investors, including:
– Accel (a leading early-stage VC firm)
– Rainmatter Capital (backed by Zerodha)
– Vijay Shekhar Sharma, founder of Paytm
– Alteria Capital
– Prime Venture Partners
These funds helped Onco build its core technology platform, expand its team of oncologists and care managers, and build a data-rich oncology ecosystem.

Why Apollo’s Acquisition Makes Strategic Sense
The acquisition of Onco aligns perfectly with Apollo’s broader vision to dominate the digital health ecosystem. Apollo has been increasingly investing in technology, AI-driven diagnostics, telemedicine, and remote monitoring as part of its digital-first strategy.
Here’s why the Onco acquisition is a perfect strategic fit:
1. Deep Oncology Expertise: Apollo already has a strong presence in cancer treatment with its Apollo Cancer Centres. Onco adds a tech-driven layer that makes cancer care more accessible, affordable, and efficient.
2. Patient-Centric Digital Model: Onco’s platform-centric approach complements Apollo’s digital strategy to provide end-to-end patient journeys — from consultation and diagnosis to treatment and recovery.
3. Data-Driven Insights: With Onco’s oncology-focused patient data, Apollo can now enhance clinical decision-making and personalised treatment through AI and predictive analytics.
4. Synergy with Apollo HealthCo: The acquisition happens at a vital moment as Apollo works on spinning off Apollo HealthCo, its pharmacy distribution and digital health division, into a separate entity.

Apollo HealthCo Demerger in Focus
Apollo Hospitals has been streamlining its operations and sharpening its focus on vertical-specific growth. One of the biggest transformations in progress is the demerger of Apollo HealthCo, which combines its:
-Offline & digital pharmacy operations
-Digital consultation platform (Apollo 24|7)
-Telemedicine and diagnostics
The newly formed entity will focus on tech-enabled omnichannel healthcare services and is expected to attract its investor base. Acquisitions like Onco add significant value to HealthCo’s offerings, enhancing its clinical depth, patient experience, and platform scalability.

Rising Demand for Oncology Solutions
Cancer cases in India are expected to increase greatly, with the Indian Council of Medical Research (ICMR) projecting more than 1.5 million new cases each year by 2025. Limited access to high-quality care in Tier 2 and Tier 3 cities has driven the need for digital oncology solutions like Onco.
By integrating Onco into its ecosystem, Apollo Hospitals can now offer remote cancer consultations, personalised care plans, and cross-speciality collaboration at scale — a critical value proposition for India’s growing cancer burden.

What This Means for the Healthcare Sector
The Apollo-Onco deal signals a growing trend where large hospital chains are acquiring niche healthtech startups to accelerate innovation, improve service delivery, and reach new markets. As the lines between physical and digital healthcare continue to blur, such mergers will become more common.
Startups with deep specialisation in one vertical (like cancer, fertility, mental health, or chronic disease) are becoming prime acquisition targets for larger healthcare conglomerates looking to quickly expand their capabilities.

Future Outlook
With this acquisition, Apollo Hospitals is poised to strengthen its leadership in the oncology space while driving forward its digital health mission. It also sets the stage for Apollo HealthCo to emerge as a tech-powered, patient-first healthcare platform that can potentially list independently or attract strategic investors shortly.
The integration of Onco will likely fuel innovation in care delivery, improve patient navigation in complex cases, and contribute to building India’s most comprehensive and tech-savvy oncology network.

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Tata Sons Strengthens Hold on Tata Capital: Shaping the Future of India’s Banking and Financial Sector

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Business, Life Style - July 3, 2025

Aditya Birla Group: Billion-Dollar Fashion Ambition!

Aditya Birla Group: Billion-Dollar Fashion Ambition!

The Indian conglomerate aims to transform four of its legacy fashion brands into billion-dollar powerhouses within the next decade, driven by rising consumer aspirations, premiumization, and a booming fashion retail market.

Summary:
Aditya Birla Group is doubling down on India’s thriving fashion landscape by setting an ambitious target: transforming four of its most iconic brands—Louis Philippe, Van Heusen, Allen Solly, and Peter England—into billion-dollar labels within the next 10 years. The group is banking on changing consumer preferences, a shift toward branded apparel, and the rise of the aspirational middle class to scale its brands to global standards and compete with international players.

In a bold strategic push to establish itself as a global fashion powerhouse, the Aditya Birla Group has unveiled its ambition to scale four of its most recognizable fashion labels—Louis Philippe, Van Heusen, Allen Solly, and Peter England—into billion-dollar brands within the next decade.
These brands, managed under the group’s fashion arm, Aditya Birla Fashion and Retail Ltd. (ABFRL), already enjoy widespread recognition across India. However, the company believes the time is ripe to elevate them to global stature, capitalizing on India’s demographic advantage, increasing disposable incomes, and a rapidly evolving sense of fashion among consumers.

Why This Move, Why Now?
India’s fashion retail market is experiencing a significant shift. With an expanding urban middle class, increasing digital adoption, and a growing youth demographic hungry for premium experiences, the country presents a fertile ground for fashion companies. According to estimates, India’s apparel market is expected to reach $125 billion by 2025, driven by a substantial shift toward organized retail and branded clothing.
Aditya Birla Group is looking to tap into this momentum and build lasting consumer relationships that go beyond affordability, focusing on brand storytelling, product innovation, and omnichannel excellence.
“India is at an inflection point in its fashion journey. The demand for branded, quality and aspirational apparel is rising across metros and smaller towns alike. We believe our portfolio is well-positioned to capture this shift,” said Ashish Dikshit, Managing Director of ABFRL.

Meet the Four Fashion Titans in Focus
Louis Philippe – Known for luxury formalwear, this brand is already a household name among India’s white-collar professionals. The focus going forward will be on expanding premium collections, international collaborations, and deeper penetration in Tier-1 and Tier-2 markets.
Van Heusen – A blend of fashion and functionality, Van Heusen is eyeing aggressive growth through its expanding athleisure and innerwear categories. The brand is also venturing into women’s formal wear, a segment in Indian retail that remains largely unexplored.
Allen Solly – Marketed as India’s first “Friday Dressing” brand, Allen Solly appeals to young urban professionals. The strategy here involves bold experimentation with casualwear, denim, and youth-centric marketing initiatives.
Peter England – Often perceived as the gateway brand for first-time formalwear buyers, Peter England aims to scale with greater focus on value-driven innovation and rural market penetration.
These four brands already contribute significantly to ABFRL’s overall revenue. The plan is to turbocharge their growth trajectories with a mix of physical retail expansion, digital presence, global licensing deals, and premium product upgrades.

Multi-Pronged Growth Strategy
To reach the billion-dollar milestone, ABFRL is implementing a robust strategy covering key dimensions:
Retail Footprint Expansion: With a current network of over 3,500 stores and presence in more than 30,000 multi-brand outlets, the group is planning aggressive store openings across the country, particularly in Tier-2 and Tier-3 cities where branded fashion is still underpenetrated.
Digital Transformation: The company is investing heavily in D2C (Direct-to-Consumer) e-commerce platforms and leveraging data analytics for hyper-personalized consumer engagement.
Category Diversification: Beyond shirts and trousers, the brands will scale up in casualwear, innerwear, accessories, and even footwear to drive average bill value and customer retention.
Sustainability Focus: With conscious fashion gaining traction, ABFRL is committed to sustainable production practices, using organic fabrics and reducing water consumption across its manufacturing units.
Global Collaborations: To keep pace with international trends, Aditya Birla is exploring joint ventures and licensing arrangements with global fashion houses that could offer fresh design perspectives and new retail models.

Competing with the Best – And Winning
While India remains the core market for growth, ABFRL also harbors ambitions of making these brands globally relevant. With increasing outbound tourism, digital commerce, and diaspora demand, Indian brands are finding global footprints like never before.
Tapping into this trend, ABFRL aims to compete with international players such as H&M, Zara, Uniqlo, and Tommy Hilfiger by offering globally inspired yet culturally rooted fashion that appeals to the Indian ethos.
Their strategic control over *entire value chains—from design and production to distribution and marketing—*gives them an edge in responding quickly to market trends and ensuring competitive pricing.

Market Response and Investor Confidence
The announcement has been well-received by industry watchers and the investor community. ABFRL’s stock has shown positive momentum, driven by strong quarterly results and optimism around the fashion business’s scalability.
The company has also been aggressively acquiring stakes in premium and niche fashion brands, such as Sabyasachi, House of Masaba, and Tarun Tahiliani, reinforcing its intent to dominate not just mass fashion but also luxury and designer segments.

Final Word: Fashioning the Future
Aditya Birla Group’s billion-dollar vision for its four flagship brands is more than just an audacious goal—it reflects confidence in India’s consumption engine, a calculated bet on aspirational branding, and a firm belief in homegrown design excellence.
As the lines between traditional and digital retail blur, and Indian consumers demand both style and substance, ABFRL’s focused investment in these legacy brands could very well create the following global fashion icons—Made in India, Worn by the World.

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Adani Electricity Boosts Investor Confidence with $49.5M Bond Buyback

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business update, Life Style, Market News - June 24, 2025

Aditya Birla Lifestyle Sets Ambitious Goal to Double Revenues by FY30

Aditya Birla Lifestyle Sets Ambitious Goal to Double Revenues by FY30

With ₹300 crore annual investments, the newly-listed brand portfolio eyes billion-dollar status, focusing on retail expansion and profitability growth.

Strong Growth Roadmap for Aditya Birla Lifestyle

Aditya Birla Lifestyle Brands Ltd (ABLBL), freshly carved out from Aditya Birla Fashion and Retail, has laid out an aggressive growth strategy aimed at doubling its revenue over the next five years. To achieve this, the company plans to invest ₹300 crore annually, primarily to strengthen its retail network and internal capabilities.

The move comes as the group positions itself to leverage India’s rising consumption trends, which are expected to drive substantial growth across various sectors, especially fashion and lifestyle.

Aspiring to Build Billion-Dollar Brands

ABLBL envisions establishing India’s pioneering lineup of fashion brands, each poised to achieve billion-dollar valuation milestones in the coming years. The company currently oversees a renowned collection of labels, featuring well-known names such as Peter England, Allen Solly, Van Heusen, and Louis Philippe.

According to the leadership team, two of these brands already generate annual revenues exceeding ₹2,000 crore each, while two others surpass ₹1,000 crore in annual sales. Building on this momentum, the company’s strategic focus over the next five years is to more than double its revenues and achieve a three-fold increase in cash profits.

Focused Investments to Drive Expansion

The company has earmarked ₹300 crore annually as capital expenditure to fuel its next phase of growth. A large portion of this investment will go toward expanding its brick-and-mortar presence across India, while a smaller share will be dedicated to technological advancements and strengthening operational capacities.

Despite the ambitious goals, the management emphasized that growth efforts will remain structured, disciplined, and supported by robust internal cash flows.

Profitability and Future Plans

Showcasing its financial achievements for FY25, Aditya Birla Lifestyle posted ₹7,830 crore in total revenue, securing a 15% operating margin and ₹60 crore in net earnings. Over the next three to five years, the company is projecting a threefold increase in profitability.

Currently, the company is not actively exploring acquisitions, though brands like Reebok and Van Heusen’s innerwear segment are being considered as potential future growth drivers.

Listing Debut and Market Performance

Aditya Birla Lifestyle Brands entered the stock market post-demerger, commencing trading with an opening price of ₹167.75 per share. The stock saw a brief upward movement during intraday trading, reaching ₹176.10 on the BSE, before settling at ₹159.40 by the end of the session. The company’s market capitalization stood at ₹19,451.50 crore post-listing.

The demerger and listing mark a pivotal shift in the company’s growth story, as it now operates independently with a sharper focus on scaling its brand presence and profitability.

Final Thoughts

Aditya Birla Lifestyle’s growth roadmap showcases its commitment to leveraging India’s changing consumption patterns and the growing appetite for premium fashion brands. By committing ₹300 crore annually toward expansion and innovation, and by focusing on its well-established portfolio of popular fashion brands, ABLBL is poised to create India’s first billion-dollar fashion brand collective. With disciplined growth plans, robust profitability targets, and promising market prospects, the company has set an ambitious path forward in the fashion and lifestyle sector.

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PFC Ltd Share Price Forecast from 2025 to 2030: Long-Term Investment Insights

BluPine Energy Secures ₹2,416 Cr to Build Hybrid Clean Power Project in Karnataka

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AstraZeneca Pharma India Q1 2026: Strong Growth and Resilience

Business, Equities, Health, Market News, Markets - January 13, 2025

Indian Pharma's 2025 Budget Wishlist: Growth, Innovation, and Challenges

Indian Pharma’s 2025 Budget Wishlist: Growth, Innovation, and Challenges

From making a few reasonably priced generic medications, the Indian pharmaceutical sector has advanced to become the global center for the production of pharmaceuticals and vaccines. In addition to meeting 25% of the UK’s pharmaceutical needs, India distributes pharmaceutical items to more than 200 countries, 50% of Africa, and 40% of the US generic market. With over 60,000 products in 60 therapeutic categories and more than 500 APIs, India is the world’s third-largest manufacturer of pharmaceuticals by volume and fifteenth by value. With a focus on biopharmaceuticals and biosimilars, Indian businesses have not only increased access to healthcare around the world but have also established themselves as reliable partners in enhancing healthcare systems around the world.

Numerous measures have been taken by the Indian government to facilitate and promote innovation and development in the Pharma sector, especially in cell and gene therapies such as a boost in funding and infrastructure investments. For instance, the Pharma MedTech Sector’s Scheme for Promotion of Research and Innovation (PRIP) was introduced to strengthen research and innovation capabilities. This program has sanctioned a total spending of INR5,000 crore (about US$604.5 million) between 2023 and 2028 and supports innovative research in pharmaceutical as well as the medical technology field. These findings are likely to make the environment of India regarding research vibrant as well as more cooperative.

Despite these encouraging growth dynamics and government support, however, many challenges have to be met before the potential of this industry can be seized in the future. The available R&D funding is less than satisfactory, and state-of-the-art testing facilities, intellectual property protection, and insufficient incentives for investment in industry-wide ventures are required. So, Pharma Inc.’s expectations comprised largely of increased public healthcare funding and incentives for pharmaceutical research and development, with some tax exemptions towards more life-saving medications in this 2025 budget.

Reduction in Custom Duties for life-saving drugs
Executives in the healthcare sector stated that increasing the number of life-saving medications free from import duties and GST will help make them more affordable for patients. They want the benefit to extend to all cancer drugs. The government was pushed by hospital owners to lower customs taxes on necessary medical supplies and equipment. Depending on the kind of medication and whether it is imported or not, India has different tax rates for necessary medications.

Modification in Section 115BAB
Anil Matai, director-general of the Organization of Pharmaceutical Producers of India (OPPI), stated that expanding the application of Section 115BAB of the Income Tax Act, 1961 to businesses exclusively involved in pharmaceutical research and development, acknowledging the high-risk, long-gestation nature of R&D, and offering a 200% deduction rate on R&D expenses.
According to Section 115BAB, a corporation that manufactures or produces any kind of item or a thing that aids in conducting research to or distributing such items is eligible for a 15% concessional tax rate. According to Deloitte, businesses engaged solely in research-related activities will be eligible for a concessional tax rate under section 115BAB, rather than being limited to research pertaining to the company’s manufactured or produced goods, given that the government wants to encourage research, innovation, and development in India.

Removal of Section 194R
The Income Tax Act’s Section 194R permits businesses to deduct taxes from any type of gift or incentive and remit it to the government. In the pharmaceutical industry, it stands for drug samples that businesses give to physicians and medical facilities. The additional administrative load placed on businesses by having to keep track of smaller transactions is one of the main causes of the demand. The process is made more complicated by the requirement that the business deducts the tax imposed under Section 194R on behalf of the beneficiary, such as a hospital.
Thus, the removal of Section 194R which is marketing samples, would facilitate streamlining business operations, according to Sudarshan Jain, Secretary of, the Indian Pharmaceutical Alliance (IPA).

Other additional expectations
Furthermore, efficiency and simplicity in doing business will be achieved when Advance Pricing Agreement (APA) processes, such as fixing deadlines for quick settlement of the case, as well as making sure renewals are done within time, are free of procedural redundancies. Going ahead, the necessity of expanding public funding for health programs and incorporating the Ayushman Bharat scheme’s missing middle class is of crucial importance.
To promote innovation and investment, the industry group has also urged for removing turnover conditions for safe harbor laws for R&D and requiring deadlines for appeals, especially those handled by the Income Tax Appellate Authorities (TAA).
Further, it would be encouraging if the Union Budget restored 200 percent weighted deductions for R&D expenditures, expanded the patent box regime to include income from patents abroad, and allocated at least 10% of the National Research Fund to life sciences, according to Sudarshan Jain, Secretary, IPA.

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Copper holds near five months low as weak demand outlook dominates

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British Fashion Titan ASOS Makes Exclusive Indian Debut Through Ajio

Beauty, Business, Equities, Expert Views, Investor Forum, Life Style, Market News, Markets, Research, Research Reports, Result Updates - September 15, 2023

Nykaa Result update Q1FY24

Nykaa Result update: Q1FY24

Company Overview:

Nykaa, a digital consumer technology platform founded in 2012, has established itself as a leading provider of lifestyle retail experiences to consumers. The company boasts a diverse product portfolio encompassing beauty, personal care (BPC), and fashion products, including their own brand offerings. As of March 2023, Nykaa collaborates with more than 6,250 national and international brands and has amassed a substantial customer base of over 24 million individuals. Furthermore, they benefit from the support of 6,900 celebrities and influencers.

Growth Potential in India: large headroom for growth

India’s per capita spending on BPC and fashion is currently under-indexed, presenting a substantial growth opportunity. With India’s GDP per capita projected to reach $5,500 by 2030, per capita spending on BPC and fashion is expected to increase to $45-$50 and $160, respectively. India is currently in the early stages of growth, with per capita consumption in these categories being among the lowest in peer countries. The online BPC and fashion market in India is anticipated to grow at a remarkable 29% CAGR and 14% over the next five years, reaching values of 799 billion and 11,746 billion by 2027, respectively.

Business Segments:

Nykaa’s primary revenue driver is the Beauty and Personal Care (BPC) segment, contributing 87% of its revenue. This segment offers a wide range of products, with nearly 300,000 SKUs from over 3,100 global and domestic brands. The Fashion segment, although launched relatively recently in 2018, has quickly gained traction, contributing 8.5% of revenue. It features 1,553 brands and more than 4.3 million SKUs across various fashion divisions.

Key Metrics for FY23:

In FY23, Nykaa witnessed robust performance in both the BPC and Fashion segments. Monthly average visitors for BPC grew by 21% YoY to 22.7 million, leading to a total of 34.8 million orders, a 31% YoY increase, with a consistent average order value (AOV) of INR 1,857. Gross merchandise value (GMV) for BPC surged by 33% YoY to INR 66,491 million. In the Fashion segment, monthly average visitors increased by 13% YoY to 17.3 million, resulting in 6 million orders, a 21% YoY increase, and a growing AOV of INR 3,973. Fashion GMV showed remarkable growth, surging by 47% YoY to INR 25,696 million

Offline Reach:

Nykaa has extended its reach with 145 physical stores in 60 Indian cities, offering three store formats – Nykaa Luxe, Nykaa On Trend, and Nykaa Kiosks. The company has an extensive presence, serving 27,800 pin codes, covering approximately 98% of serviceable pin codes across India.

Valuation:

company’s current stock valuation is at a multiple of 2,348 PE, with a market price of INR 147, compared to the industry PE of 74.5. Nykaa reports relatively low return ratios, with ROE at 1.42% and ROCE at 5.55%. The stock is trading at 30.3 times its book value, and the EV/EBITDA stands at 136x.

Q1FY24 Results Update:

In Q1FY24, Nykaa continued its growth trajectory, with consolidated revenue increasing by 23.8% YoY to INR 1,422 crore. This growth was primarily driven by the BPC segment, which saw a 22.8% YoY increase to INR 1,130 crore, coupled with a 6.3% YoY increase in the Fashion business. Gross merchandise value (GMV) reached INR 26.7 billion, growing by 23.7% YoY, with substantial contributions from both BPC and the Other business. Notably, Nykaa’s distribution mechanisms boosted GMV across online and physical channels. The Fashion segment’s GMV grew by 12.3% YoY to INR 653 crore, driven by an 18.2% YoY increase in order count. EBITDA surged by 59.5% YoY to INR 73 crore, with margins expanding by 120bps YoY to 5.2% due to cost optimization. PAT increased by 8.3% YoY (and 138% QoQ) to INR 5 crore.

Conclusion:

Nykaa’s performance in FY23 and Q1FY24 demonstrates its strong position in the Indian beauty, personal care, and fashion markets. With a growing customer base, expanding offline presence, and a promising outlook for India’s per capita spending in these sectors, Nykaa is poised for continued growth. However, investors should carefully consider the stock’s valuation and return ratios as part of their investment strategy.

Astral Pipes posted a net profit of Rs. 96 Cr.

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Business, Editorials, Equities, Food, Markets, Research - September 16, 2022

Kaveri Seeds reported a net profit of Rs. 240 Cr.

Kaveri Seeds reported consolidated revenue increased by 9% YoY to 690 Cr., led by higher cotton acreage and improved volumes. The EBITDA, at 250 Cr., improved by 18.3% YoY, while PAT grew 19.1% YoY to 240 Cr. The EBITDA margin improved to 37.1%. Cotton volumes increased by 8.3% YoY while revenue fell by 3.8%. The non-cotton volumes improved by 9.8% while revenue increased by 10% YoY. The company intends to improve volume and revenue for the rest of FY23 with double-digit growth in this segments.

Volume growth aids the topline:

The use of illegal cotton seeds has come down as organised players have gained market share in the cotton seed segment, which has also led to an increase in revenue. The new product launches continued in the quarter as the company introduced newer products across all segments. The new products in the North American market include KCH111, VIPLAV, Money Maker, and KCH 9333. The selected rice volumes grew by 15.2% in FY23. Hybrid rice volumes increased by 6.1% and revenue by 1.0%. The introduction of new hybrids such as the 425, 471, 729, and 473 fueled the segment’s rapid growth. The vegetable seed sales volume increased by 25.9% while revenue decreased by 2.5%. The company is expecting double-digit growth in maize, sunflower, vegetables, and rice in the second half of the year. Farmers’ sentiment has also been influenced by the delay in the onset of the monsoon across India until mid-June.

The company continues to see encouraging growth in vegetable seed acreage, revenue growth, and volumes. The overall exports of KSCL have contributed to 19 Cr. in revenues. The management expects exports to contribute a significant share in the next year. The high market shares and cotton prices drove increased cotton acreage during the current year. Increased competition in the cotton segment led to muted growth due to smaller companies with low realisations crowding the market, which will eventually result in lower overall realisations and higher discounts given during the quarter. The price of cotton per packet was up by 40 YoY.

The company remains confident that discount reversals will happen next year due to lower illegal BT cotton share and overall better market sentiment, despite not being able to realise prices. There is a decrease in acreage due to rain shortages. The higher prices will result in more acres in the cotton crop, which is a major risk for the company.

KSCL’s earnings seem to have normalised and are likely to improve for the rest of FY23. The contribution from the non-cotton segment is improving, and the division is expected to post double-digit growth. The leadership position, R&D focus, healthy product pipeline, presence across crop categories and strong distribution network will act as key levers for growth over the long term. The increasing contribution from the higher-growth projected non-cotton segment will aid the performance. There is a decrease in acreage due to rain shortages. The higher prices will reduce acres in the cotton crop.

Valuations:

In June 2022, the EPS was Rs. 41.27, compared to Rs. 33.44 in June 2021. The ROCE and ROE were at 17.1% and 16.3%, respectively. The stock was trading at a P/E ratio of 10.9x. The company is debt free, and the asset turnover ratio was 0.48x. The scrip is trading at Rs.461, down by 3.05% on Friday.

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Business, Editorials, Equities, Health, Markets, Research - September 16, 2022

Krishna Institute reported a net profit of Rs. 79 Cr.

KIMS reported a net profit of Rs. 79 Cr., and decrease from Rs. 83 Cr. in March 2022 and Rs. 92 Cr. year on year. The revenue in Q1 FY22-23 increased to Rs. 459 Cr from Rs. 372 Cr in March 2021 and Rs. 473 Cr in June 2021. The operating profit was Rs. 137 in the current quarter versus Rs. 114 Cr. in the March quarter.

The expansion will be done using a cluster-based approach.

KIMS has entered into a definitive agreement to acquire a 51% stake in Kingsway Hospitals, Nagpur. This is one of the largest private multi-specialty hospitals in Nagpur, promoted by the Sancheti family and a few eminent doctors. The hospital was commissioned in 2019 with a 334-bed capacity, expandable to 500 beds. KIMS will pay upfront Rs. 800 crore for its 51% stake, which will be used to repay existing debt. After this infusion, the JV will still be left with Rs 150 Cr of debt.

Acquisition cost works out to be Rs 90 lakh/bed.

The acquisition cost works out to be Rs 90 lakh/bed. The acquisition will be completed by Sept. Assuming the operating leverage plays out, Kingsway hospital will have 250 operational beds with a 53% occupancy. For FY22 and FY23 (4 months), Kingsway generated Rs. 1700 Cr. and Rs. 47,500 Cr. of revenues, respectively. ARPOB stands at Rs 29,000/day and has turned EBIDTA positive within 3 years of operation.

KIMS management intends to enhance occupancy from current levels, as well as bring operational efficiencies and synergies. The Kingsway hospital’s COGS stands at 28-29% of sales versus KIMS’s 22% of sales. The management sees profitability scaling up from current levels and reaching 15-20% OPM over the next 2-3 years. KIMS currently has net cash of Rs 200 Cr. and thereby, the Kingsway acquisition will be funded through internal accruals. Currently, the payor mix stands at 80%, comprising of cash plus insurance.

The management, in its cluster-based approach, is looking forward to replicating the AP and Telangana models in the Maharashtra and Karnataka regions. KIMS plans to commercialise 1500 beds over the next 4–5 years across Maharashtra and the Karnataka region. The expansion will be a combination of inorganic and greenfield expansion. More importantly, the company will partner with local doctors and consultants in specific micro-markets to generate better footfalls and achieve a faster breakeven. KIMS will have full control of decision-making in such a partnership.

Valuations:

In June 2022, the EPS was Rs. 8.74, compared to Rs. 10.08 in June 2021. The ROCE and ROE were at 14.8% and 15.6%, respectively. The stock was trading at a P/E ratio of 31.7x. The debt-to-equity ratio was 0.18x, whereas the asset turnover ratio was 0.99x. The interest coverage ratio stood at 29.5x. The scrip is trading at Rs.1241, down by 0.2% on Wednesday.

Dr. Lal Pathlabs reported a net profit of Rs. 58 Cr.

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Business, Editorials, Equities, Health, Markets, Research - September 16, 2022

Dr. Lal Pathlabs reported a net profit of Rs. 58 Cr.

Dr. Lal Pathlabs reported a consolidated net profit declined 57% to Rs 58 crore for the first quarter June 30. The company had reported a net profit of Rs 134 crore in the April-June period of the last fiscal. The revenue from operations declined to Rs 503 crore in June 2022 from Rs 607 crore in June 2021. In Q1FY23, DLPL served 69 million patients and collected 180 million non-Covid-19 samples. The company declared an interim dividend of Rs. 6/share.

The diagnostic sector will experience tremendous growth.

Dr. Lal PathLabs reported healthy core business performance, driven by increased penetration, digitalization, enhanced testing facilities, and increased home sampling. Swasth fit contributed to 21% of total revenue; packaged tests accounted for 30% of sales. The company targets pre-Covid-19 level growth of 13-15% over the year and strives to double its volumes over 2-3 years.

The Indian diagnostic sector holds significant growth potential, as was evident by the industry’s response to the pandemic, and organised national brands have met these challenges without raising prices. The industry has seen the entry of many new competitors and the growth of the organised sector, both due to overall market growth as well as an accelerated shift from the unorganised to the organised segment.

The customers appreciate the certainty of quality and effectiveness that Dr. Lal PathLabs provides, which the unorganised players will not be able to successfully deliver. In the future, they will build and drive growth through organic expansion of lab and collection centre infrastructure, inorganic expansion, use of technology to improve customer experience, and provision of value-added services at one level while driving internal process efficiencies at another level to achieve productivity. On the organic front, the initiative of the creation of Hub Labs has started yielding good results, especially in the northern part of India. This will also give the capability to go deeper into Tier-II and Tier-III towns in large states like UP, Bihar, etc.

Valuations:

Dr. Lal Pathlabs, EPS was at Rs.6.2 in June 2022, down from Rs.15.74 in June 2021. The ROCE and ROE were at 29.4% and 25.1%, respectively. The stock was trading at a P/E ratio of 73.4x. The debt-to-equity ratio was 0.35x, whereas the asset turnover ratio was 1.04x. The interest coverage ratio stood at 12x. The scrip is trading at Rs.2389, down by 1.89% on Wednesday.

Everest Kanto reported a total revenue of Rs. 380 Cr.

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Business, Editorials, Equities, Food, Markets, Research - September 16, 2022

LT FOODS reported an operating profit of Rs.166 cr.

LT Foods (LTF’s) declared its Q1 FY22-23 results with revenue rising 32.8% YOY to Rs 1,611 crore. The operating profit was up by 27.7% to Rs 166 crore and net profit went up by 23.28% YOY. Its profit margins recovered sequentially but contracted YOY. The net profit stood at Rs. 95 Cr, compared to Rs. 76 Cr. in June 2021. The revenue growth was on account of accelerated brand investments across various segments.

Margins under pressure:

The gross margin improved by 110bps YoY, aided by an improvement in product mix and higher realisation. However, EBITDA margin fell by 40 basis points year on year to 10.0% due to higher freight costs and additional brand investments.LTF has a strong focus on a value-added portfolio, which will support margin improvement in the long-term. The Health & Convenience product segments, which include ready-to-eat products, contributed 2% in FY22, an improvement from 1.5% in FY21. The company targets a 150 bps expansion in EBITDA margin through product mix, operational efficiency, and scale.
The green energy initiatives by the company will provide production efficiency. We anticipate that EBITDA margins will moderate in the near future due to higher costs, but will gradually improve thereafter. LTF’s consistent efforts on brand strengthening and distribution network expansion, as well as region and product diversification via organic and inorganic routes, have been the growth strategy.The recent acquisition in the Jasmine rice segment will strengthen market share. The re-opening of HoReCa channels is also aiding growth, while LTF’s strong focus on value-added products will improve margins.

Valuations:

LT Foods’ EPS was at Rs. 2.80 in June 2022, up from Rs. 2.27 in June 2021. The ROCE and ROE were at 14.8% and 15.6%, respectively. The stock was trading at a P/E ratio of 9.47x. The debt to equity ratio was 0.66x, whereas the asset turnover ratio was at 1.28x. The interest coverage ratio stood at 7.55x. The scrip is trading at Rs. 91.6, up by 2.92% on Monday.

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Navigating the New FDI Landscape: ITC's Strategic Advantage

Business, Expert Opinions, Health, Health Experts, Real Estate, Real Estate News - July 5, 2020

How co-working spaces can restart post lock down

How co-working spaces can restart post lock down.

Most co-working spaces are now outlining radical steps to reopen their company post lock down, maintaining participants’ health and sanitation at the maximum standard of premises. The risk and uncertainty of COVID-19 pandemic is increasing each day. Although, policy measures are in full swing to stem the dramatic effects of this pandemic, which is quickly tolling human lives. There is also little clarification as to when regular business resumes. This is well known that the lock down cannot stay in effect permanently.

Measures to implement:

When the lock down is ended and firms can function out of their office buildings, several innovative initiatives and procedures will need to be enforced in all working settings to take care of the possibility of contracting the infection. The organizations will have to introduce improved protection procedures higher than a conventional workplace to maintain business-as-usual and guarantee strong organizational interest into co-working work spaces.

Work from home:

Indian IT industry allowed workers to Work From Home according to policy order during the lock down. As a result, nearly 90 percent of workers operated from home, with 65 percent from urban areas and 35 percent from small-town areas. The IT industry moved to the Work from the home system during the lock down very smoothly offering operational continuity to consumers without reducing efficiency or profitability, shocking both major companies and customers. So several workers operating from home amid reports that a substantial portion of them will continue even once the condition returns to normal life. Companies will now need to reconsider their approach particularly in office, interior and architecture real estate, to make the segment more appealing to customers.

Post COVID:

When the job continues after the lock down, optimizing the use of workspace is a concern. The workplace will entail large-scale behavioural and physical room changes. Organizations would now take advantage to revaluate their working course of action to give more adaptability to their staff, particularly thinking about the advantages of profitability and commitment, This will push up the demand for co-working space.

Opportunities:

Risk reduction must now be an essential part of organizational decision-making, particularly as businesses follow their business continuity plans. Organizations will intend to make decent variety in the geography, expanding the opportunities for adaptable workspaces in Tier 2 and Tier 3. They may likewise observe a piece of organizations moving to Tier2 and 3 urban areas to keep away from a shutdown during emergency. Expanding activities through geographies is intended to work well with the co-working group.

Co-working space:

Co-working facilities have often provided an advantage in terms of cost-efficiency. The world hopes to see the quickest post-lockdown recovery. At the point when the pandemic hazard facilitates, more organizations look to continue their business. Co-working spaces is the main decision for some organizations since they are more flexible in the time of the rent agreement. Businesses cannot afford to operate from home for so long, because many of them have tasks needing a high degree of direct control that are only possible in a structured office environment. These enterprises are heavily reliant on the office facilities to work efficiently.

Looking on, co working spaces will continue to restructure their work environments, such as relying mostly on activity-based workplace and collaborative zones. The co-working space team will have to focus on other things, such as ramping up hygiene procedures with daily sanitization of premises, beginning shift-based jobs, simulated meetings, even sanitizing the hands of each participant entering the property, and sitting in offices in compliance with social distance norms. It may include the supply of hand sanitizers and the substitution of bio-metrics with card access.

Workspace administrators will have to enable participants to make the most possible use of their collective senses when allowing the use of community resources in co-working spaces since sanitation is the highest priority. They will also have to make sure that members comply with shift-based systems to eliminate the possibility of congestion. They will also be expected to establish a new regulatory structure or regulations. People should maintain social distancing and carry face masks for good effect. Co-working spaces will be required to re-plan their work areas and make sure their encounters do not lead to infection.

Drawbacks:

For all the undoubted upsides of co-working spaces that are primarily funded by companies, freelancers, small to medium-sized organizations and start-ups. They also have drawbacks and constraints. Besides most of them missing independent canteens they often prevent businesses from holding activities in local places. Trying to maintain these services is another problem. While several major businesses utilize co-working spaces, these drawbacks have usually driven some others away from the possibility of adopting them due to lower rentals.

How to Plan Invest In Insurance Sector and Tax Planning.

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