Business, Equities, Expert Views, Investor Forum, Market News, Markets, Research, Research Reports, Result Updates - August 30, 2023

Shriram Finance Business Update Q1FY24

Shriram Finance Result update Q1FY24

Overview: Shriram Finance, a key constituent of the Shriram Group conglomerate, is a prominent non-banking financial company (NBFC) in India, specializing in a wide range of credit solutions including commercial vehicle, two-wheeler, car loans, home loans, gold loans, and small business financing. The conglomerate underwent a strategic consolidation in November 2022, merging Shriram Transport Finance, Shriram City Union Finance, and Shriram Capital to form Shriram Finance. This merger solidified its position as one of the largest NBFCs in the country with an impressive Assets Under Management (AUM) of INR 1,85,683 crore.

Operational Presence :

As of June 30, 2023, Shriram Finance boasts a robust presence with an extensive network of 2,930 branches across India. The company’s workforce stands at 66,343 employees, servicing a substantial customer base of approximately 7.54 million. This extensive reach covers rural, semi-urban, and urban areas, thereby facilitating a comprehensive market outreach.

Market Penetration and Position:

Shriram Finance holds a dominant position in the market for second-hand truck financing. Despite this, the market remains under-penetrated, with around 55-60% still served by private financiers and money lenders charging high-interest rates. This presents an opportunity for formal players to incrementally enhance their market share. Shriram Finance, leveraging its domain expertise, is strategically positioned to capitalize on this potential, thus cementing its foothold in the industry.

Financial Performance:

In Q1FY24, Shriram Finance exhibited commendable financial performance. Interest income surged by 13.3% YoY (+3.5% QoQ) to INR 76,880 million. Correspondingly, interest expenses witnessed an increase of 18.1% YoY (+7.5% QoQ) amounting to INR 34,875 million. Net Interest Income (NII) exhibited a robust growth of 9.7% YoY, reaching INR 42,004 million. The Net Interest Margin (NIM) contracted by approximately 25 basis points (QoQ) to 8.3%, attributed to declining yields and an uptick in borrowing costs.

Profitability and Efficiency:

The Profit After Tax (PAT) exhibited impressive growth, surging by 25.1% YoY (+28% QoQ) to INR 16,754 million. However, it’s noteworthy that the Cost-Income ratio stood at approximately 31% (compared to the previous year’s ~27%) due to a notable 33% YoY increase in employee expenses. This reflects the company’s focus on expansion and enhancing operational capabilities.

Valuations:

As of June 30, 2023, Shriram Finance’s Price to Book Value stands at 1.60, a notable improvement from 2.2 in FY22. Return on Equity (ROE) and Return on Assets (ROA) exhibited year-on-year improvements of 70 basis points and 30 basis points, reaching 15.19% and 3.08%,

Asset Quality:

A significant highlight of the quarter was the notable enhancement in asset quality. Gross Non-Performing Assets (GNPA) and Net Non-Performing Assets (NNPA) ratios demonstrated improvement, declining to 6% and 3.1%, respectively, from 6.2% and 3.3% in the preceding quarter (Q4FY23). Additionally, the Provision Coverage Ratio (PCR) for Stage 3 loans witnessed a substantial increase of around 240 basis points (QoQ) to approximately 52%, underscoring prudent risk management practices.

Conclusion:

Shriram Finance’s merger-driven consolidation, comprehensive market outreach, dominant position in second-hand truck financing, commendable financial performance, and focused approach towards profitability and asset quality reinforce its stature as a leading player in the NBFC landscape. The company’s strategic maneuvers and operational excellence position it advantageously to harness future opportunities and navigate challenges, further bolstering its credibility and standing in the financial industry.

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

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Business, Economy, Editorials, education, Equities, Investor Forum, Market News - August 29, 2023

Wales government to discuss with welsh companies on investing in gift city in kochi:

The Kerala government has agreed on a student exchange programme and is sending the healthcare workers to Wales, which is held by the government. A Kerala chief minister has been on a tour of Europe, including a stop in London to promote a programme that will send health workers from Kerala to Wales, as well as student exchanges through the taith program.

The Taith programme is a five-year Welsh government initiative that brings students and educators from all over the world to Wales.with the aim of raising its benefits to the country’s international profile. Earlier, Kerala industries minister Veena George had been welcomed to Cardiff, in Wales.

ministerial delegation:

According to officials, chief minister Pinarayi Vijayans, who was part of the Wales ministerial delegation from Kerala, stated that the government will take the initiative to discuss with companies about investing in the gift city, which will be launched in Kochi, which is located in the southern state.

The chief minister officer stated in a statement that a decision was also made to sign a memorandum of understanding with the Welsh government for the purpose of sending health professionals from Kerala to the European country.and also said that the first batches of health professionals under the memorandum of association are expected to arrive in Wales by next year.

The discussion was held in between the Kerala delegation, which was held by the chief minister, Pinarayi Vijayan, and interaction with the first minister of Wales’ government, Mr. Mark Drake, as well as with the other members of his government, including along with the Welsh health minister and social service minister, Eluned Morgan.

Furthermore, the CMO stated that, according to a study conducted by the school of architecture, the problems highlighted by the port city of Kochi were noise pollution, water pollution, traffic, and other general pollution, among other things, faced by pedestrians.There should be a need to maintain biodiversity etc.

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Automobile News, Autos, Business, Editorials, Expert Views, Market News, Markets - August 27, 2023

Auto industry needs to provide flexi-fuel vehicles at various price points to accelerate blended fuel technology adoption .

In an event organised by the auto industry body, the Society of Indian Automobile Manufacturers [SIAM], the union ministers of petroleum and natural gas and housing and urban affairs stated that the Indian automobile industry needs to provide flexi-fuel vehicles at various price points quickly to accelerate the adoption of blended technology.The government will provide comprehensive support from the supply , policy and demand side for the sale of the flexi-fuel E10, which is a blend of 10 percent ethanol with the petrol, and the E20, which is a blend of 20 percent ethanol with the petrol.

Vehicles are the auto industry’s viable business proposition;

we need more options at various price points, including two-wheelers and three-wheelers, and we need them quickly. Hardeep Singh Puri, the minister for petroleum and natural gas, as well as housing and urban development, used the launch of Toyota’s first-of-its-kind pilot project on the flexi-fuel [FFV-SHEV] that can run on 100 percent ethanol in India last week to demonstrate how things are progressing on the blended fuel front.He also said the government is ready from the supply side to launch the E20 .

The union minister, Nitin Gadkari, launched this first pilot project on flex fuel strong hybrid electric vehicles [FFV–SHEV] on October 20, 2022 . which has been imported from Toyota Brazil for the pilot project . FFVs allow for greater ethanol substitution of gasoline because they can use any of the higher ethanol blends ranging from 20 percent to 100 percent.An FFV-SHEV has a flex-fuel engine and an electric power train, providing the dual benefit of higher ethanol use and greater fuel efficiency, as it can run in its EV mode for extended periods of time while the engine is turned off.

Target achievement:

Achieving the E20, which is blending with petrol by 2025, would help India save foreign exchange by about Rs 30,000 crores per annum . Hardeep Singh Puri also said that India will push for an international biofuel alliance when it assumes the presidency of the G20 in December this year .

Further , he said, we will utilise our G20 presidency to try and set up an international biofuel alliance . The number of petrol pumps selling bio fuels has more than tripled, from 29,897 in 2016-2017 to 67,641 in 2021-2022.He also says in his statement the India’s ethanol demand is poised to grow to 10.16 billion litres by the year 2025 . and also expanded the excise duty waiver for biofuels and will always consider how to prepare this even further in the future .

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Business, Equities, Markets - August 26, 2023

The new rich are fueling brand expansion of Titan

The new rich are fueling brand expansion of Titan:

There is a lot of latent demand for luxury items from India and high-class people. Titan gets maximum revenue from its jewellery business, which is about 90% and the remaining 10% from various businesses like watches , eyewear, and perfumes etc. Titan has four jewellery brands under its portfolio. They are: flagship tanishq, working women’s focused mia, online sales portal carat lane, and zoya . This caters to the rich customer base.

Expansion of business:

India anticipates a significant increase in high-end consumers, prompting Tata group’s jewellery unit to triple its zoya-branded stores by 2027.In the next five years, these stores will be expanded to a total of 15.which will cost around 3.64 million per store. Further revenues from the jewellery business could have the benefit of 80-90 basis points because, of that rest, all businesses have performed well.

India is already the world’s second largest market for the consumption of gold. During the COVID period, there was a disruption in the golden harvest related pieces, but now the business is doing very well and going forward. The company has just opened its second new store of fast rack eyewear, especially to address the youth segment, and tanishq has added 78 stores to its retail footprint, bringing the total number of stores to 582. The company’s aim is to take that number to 700 over the next couple of years. Carat Lanes handcrafted silver jewellery brand Shaya opened its first-ever physical stores in Mumbai and Bengaluru.

company has also plans to accelerate its international expansion in Zoya with Tanishq. Further, the CEO of the jewellery division said that they will utilise this experience to plan a global move for Zoya. Zoya has a collaboration with the Indian hotel company, Taj Hotels, Resorts, and Palaces, etc. and bespoke jewellery made with the design team and artisans. It will attract wealthy clients. Company is also aiming to incline up abroad extension in zoya in a offer to build a global luxury brand.

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

Editorials - October 12, 2022

Amid an energy crisis, desperate Europeans turn to firewood for warmth

Amid an energy crisis, desperate Europeans turn to firewood for warmth.

At a summit in Prague, European leaders fell short of agreeing on a price cap for gas amid concerns that any such move could threaten supplies to the region. the gas pipeline is the latest sign of the regions critical position as Russia slashes supplies in the standoff over the war in Ukraine. As much as 70% of European heating comes from the natural gas and electricity and with Russian deliveries drastically reduced.

In france prices for wood pellets have rised nearly doubled to 600 euros a ton. And there are signs of panic buying of the most basic fuel , meanwhile wood stoves can now take months to deliver. The energy level of crisis is intensifying a surge in living expenses , with inflation strapped households across the region are increasingly faced with choosing between heating and other essentials.

Europeans are so angry over sky-high bills and starting to gather the firewood for winter.,
For many Europeans the key concern is doing whatever it takes to stay warm in the coming months. The fear for heat could create health and environmental issues. the diseases can end up deep in the lungs and cause heart attack , strokes etc said by the expert. In Germany facing a yet another crisis after Russia shut down its Nordstrom one national gas pipeline due to technical issues. Germany, where the country’s association of chimney sweeps is dealing with a flood of requests to connect a new and old stoves, and peoples are inquiring about the burning horse dung.

People are anxious for wood and they are buying more than usual. In Berlin , crisis creates unsettling echoes of the desolation following world war 2 with fuel of short supply, residents chopped down nearly all the trees in the central tiergarten park for heating.

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Business, Equities, Markets, Uncategorized - October 10, 2022

Zee -sony merger could change the business trajectory.

The competition commission of India (CCI) granted the Zee and Sony conditional approval.The CCI approved the merger of Zee Entertainment Enterprises Ltd with Sony Pictures Networks India pvt Ltd and Bangla Entertainment Pvt Ltd, both part of the Sony group corporation, accepting the modification proposed by the companies to the deal they had announced.

CCI stated that the proposed combination relates to the amalgamation of each Zee and BEPL with and into CME. and preferential allotment of certain shares by CME to Sun Bright International Holding pvt. Ltd. and Sun Bright Mauritius investments ltd.Further, CCI has said that the merger between Japanese company Sony and Indian company Zee Entertainment could hit India’s domestic market.

In terms of viewership share, Zee and Sony have a combined entity share of less than 40% across genres, with the exception of movies, where the merged company has a share of more than 50%.and zee and Sony have a combined total TV viewership share of around 24 percent, slightly higher than Disney Star’s (20 percent).When it comes to advertising , Zee and Sony as a combined entity will command an ad revenue market share of 27 percent, which is largely on par with the Disney star that has a TV ad market share of 26.5 percent as of FY21.

Conditional Nod:

The conditional nod from CCI comes over a month after it was reported that the anti-trust watchdog have flagged the potential adverse effects arising from the merger. The merger, which would create a $10 billion television conglomerate, has the potential to harm competition by providing unparalleled bargaining power.

The board had said that Sony will hold a 50.86% stake in the merged entity, the promoters of Zee will hold 3.99 % , and the other zee shareholders will hold a 45.150% stake in the combined company. The zee-Sony combined entity linear channel portfolio would comprise a wide array of genres and languages with 75 channels. The companies’ combined revenue was Rs 133bn in FY21. which include network and revenue market share of 27% and 37%, respectively.

Financial highlights:

According to Sony, the merged company will create extraordinary value for Indian consumers and will eventually lead the consumer transition from traditional pay TV to the digital future.Zee and Sony will bring tremendous synergies between the two companies that will exponentially grow the business and the sector. While the OTT entertainment market has grown to nearly Rs 100 billion, with Rs 43.5 billion in subscription revenue derived from 53 million subscriptions and 29 million unique subscriptions,

The zee and Sony OTT apps, while performing modestly individually, have double-digit revenue and subscriber market share on a combined basis. The combined operating cost of Rs 30bn is similar to that of the top OTT platforms . assuming it could match the top entertainment apps in the original content generation space. Zee lacked the strength to compete with the top OTT platforms individually; the combined entity has the potential to create a strong foothold and content slate with a war chest of Rs 113bn capital infusion from Sony post merger and potential cash generation of Rs 50bn from the linear business.The only thing where the company is lacking in sports is the bidding for the next 5 years of broadcasting rights for the IPL.

According to experts, this merger will create a 10bn dollar TV enterprise. this will create the largest entertainment network in India with a 26 percent viewership share and could become a one of the serious competititor to replace market leader star and Disney.

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Business, Equities, Markets, Research, Result Updates - October 3, 2022

Lupin ltd consolidated revenue fell by 14% YOY to Rs 3604 Cr.

In Q1FY23, Lupin ltd consolidated revenue fell by 14% YOY to Rs 3604 Cr.

Lupin limited is a multi-national pharmaceutical company based in Mumbai. The company specialises in branded and generic formulations, APIs and advanced drug delivery systems in biotechnology. It has 18 manufacturing sites and 9 R&D sites across the globe.

Lupin ltd consolidated revenue fell by 14.9% YOY to Rs 3604 Crores, in Q1FY23, due to subdued performance of its US business.EBITDA was down by 76% YOY to Rs 238 Crores. EBITDA margin falls by 1680 basis points.YOY to 6.6% due to raw martial inflation, higher employee spends and other expenses. Consequently , company reported a loss of Rs 89 Crores. As against of Rs 542 Crores profit a year ago. Company increasing market share, new product ,and scaling up of the Indian business indicate well for the company performance.

Financial highlights :

In Q1FY23, lupin ltd consolidated revenue declined by 12.3% YOY and QOQ to Rs 3.74Crores.it is mainly due to muted performance in the US business. Revenue from the US business declined by 24.2% YOY and 28.7%Quarter On Quarter to Rs 1010 Crores due to inventory writw down , shelf stock adjustments and price erosion. Company s Indian revenue stood at Rs 1492 Crores which is down by 8.85 YOY and up by 10.4% QOQ DRIVEN BY A 9.9% Quarter on quarter driven by a 9.9 % QOQ growth in domestic formulations. API revenue grew by 3.7% YOY and 15.8% QOQ to Rs 255 Crores. While revenue from growth markets rose by 27.3% YOY and 11.2% QOQ to Rs 424 Crores.

Margins impacted due to raw material inflation:

Gross margin of company contracted by 720 basis points YOY to 55.3% as the company pared down inventories and took shelf shock adjustments on select products consequently; EBITDA fell by 76% YOY to Rs 238 Crores. Company owing to further price erosion in the US business and inflation in input materials. EBITDA margin thereby shrink by 16.8% YOY to 6.4% reported a loss stood at Rs 89 Crores as against Rs 542 Crores .

Quarter highlights:

Capex stood at Rs 161 Crores against Rs 106 Cr in Q1FY22 and Rs 158 Crores in Q4FY22. R&D expense was at Rs 348 Crores against Rs 374 Crores in Q1FY22 And Rs 344 Crores in Q4FY22. Total marketed generic products stood at 167. It launched cyclosporine ophthalmic in the US in the quarter. Current pipeline includes 54 FTF, OF Which 21 exclusive FTFs are awaiting for the USFDA approval. In India business, the company has a revenue run rate of more than Rs 1000 Crores. In cardiac and anti-diabetics .GI, pain and gynae grew in double digits.

Valuation:

The EPS was Rs. -1.96, compared to Rs. 10.15 in June 2021. The ROCE and ROE were at -7.16% and -11.8%, respectively. The book value of a stock is Rs 267. The company’s asset turnover ratio was 0.73x. The scrip is trading at Rs.717, up by 5.40%. on Monday.

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

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Business, Editorials, Equities, Markets, Research - September 30, 2022

the-cabinet-okays-a-rs-10000-crore-futuristic-revamp-of-three-major-railway-stations

The Cabinet okays a Rs 10,000 Crore futuristic revamp of three major railway stations.

The union cabinet meeting, which is chaired by the hon. prime minister, Narendra Modi, have gave approval for the redevelopment of 3 major railway stations with a total investment of Rs 10,000 crores. Further, union minister of railways Ashwini Vaishnaw has said that the stations will be develop with a futuristic design.
1. New Delhi railway station
2. b] The railway station in Ahmadabad, as well as
3. c] Mumbai’s Chhatrapati Shivaji Maharaj Terminus [CSMT].
A railway station is an important and central place for any city. PM Shri Narendra Modi has given importance to station development in the transformation of railways by using green building techniques method with solar energy, water conservation, recycling and improved tree cover. cabinet decision gives a new direction to the station dev.,work on development of 199 station on and from these tenders have been issued for 47 railway stations. For the remaining stations, the master planning and design is in progress. Work progression is fast for 32 stations and the cabinet has sanctioned an investment of Rs 10,000 crores for 3 big stations, namely New Delhi, CSMT Mumbai and Ahmadabad.

The components of railway station design will be:

Every station will have a spacious roof plaza of [38/72/108m] with all the passengers’ amenities in one place, along with spaces for retail, cafeterias, and recreational facilities..
Both sides of the city will be connected to the station, and with the station building on both sides of the railway tracks.

Facilities like food courts, waiting lounges, playing areas for children , and places for local products, etc. will be available.

To make stations comfortable , there will be a proper illumination , way finding, signage, acoustics, lifts, escalators, and travelators.

A detailed plan have been prepare for the smooth movement of traffic with adequate parking facilities.

There will be corporations for transportation like metro, buses, etc.

Green building techniques will be use in stations redeveloping with solar energy, water conservation, and recycling and improved tree cover.

Special care will be taking to provide Divyang with friendly facilities.

This stations will be built on the concept of elegant building.

There will be segregation of arrivals and departures, clutter-free platforms, improved surfaces, and fully covered platforms.

All stations will have a CCTV installation with remote access.

development benefits:

These will be iconic station buildings. However, shifting from the earlier stance, the ministry will no longer be looking at station redevelopment on a public–private partnership [ppp] basis, the minister said. The 3 stations will be develop completely through budgetary means, he added. The projects will be tendered out through the engineering procurement and construction [EPC] mode. This comes from the ministry had earlier floated a tender for the redevelopment of Chhatrapati shivaji maharj terminus under the build-operate-transfer [BOT] MODE. A form of PPP.

The benefits of the EPC mode are that it results in the creation of 35,744 new jobs; it improves the daily experience of more than two million travellers; it also helps the local economy through investment and additional business opportunities; and it promotes transit-oriented development of cities.

The development assumes significance with respect to the monetisation plans of the railway ministry , which is the second highest contributor to the centres The Rs 6 trillion national transportation .Further, Vaishnaw said that the Delhi station will take around 3.5 years to complete as it involves complex operational changes, and the other two railway stations, Ahmadabad and CSMT Mumbai, will be ready in 2.5 years. The redevelopment of the stations is to be complete in a time span of approximately 2–3.5 years.

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Business, Editorials, Equities, Markets, Research - September 17, 2022

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

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

Astral posted consolidated revenue growth of 73.2% YoY in Q1FY23, majorly led by growth in plastic and adhesive. In the plastics segment, the company reported volume growth of 48.5% YoY, which was on par with the industry growth, indicating that Astral gained market share in the plumbing segment. The company’s gross margins fell by 717bps YoY due to a fall in PVC prices, leading to an inventory loss of Rs 25 Cr. The raw material and PVC prices are falling continuously and reached Rs 102/kg in July ’22 from Rs 120/kg in April-Jun 22. The company’s EBITDA margins fell by 433bps YoY due to a fall in its gross operating profitability. However, its reported PAT grew by 27.0% YoY at Rs. 96 Cr. as compared to sales due to a fall in operating profitability.

Volume expansion to boost growth:

Astral has reported volume growth of 10% in the piping segment, the highest among peers in the last 4 years. This reflects that Astral is gaining market share in the plumbing segment. The raw material and PVC prices have been falling continuously, which would help in improving the gross margins of the company after inventory is stabilised. Astral could deliver consolidated margins in the range of 17% to 18% in the upcoming quarters. Furthermore, Astral’s foray into valves, resins, sanitary ware, and tanks would add revenue growth in the upcoming years.

The company estimates that newly launched products and segments, including tanks, drain-pro, ball-valve, sanitary ware and faucets, and paint business, will be able to generate revenue of Rs 1,500 Cr over the next 5 years. Astral has invested Rs 1,000 crores in capex over the last five years, with the funds being used in the coming years. Therefore, the company is confident that it will be able to grow not only in its existing product portfolio but also accrue additional revenue of Rs 1,500 Cr in the next 4–5 years by leveraging its new products and categories. In April ’22, the company entered into a definitive agreement to acquire a controlling 51% stake in the operating business of Gem Paints Private Limited. ‘Gem’ paints have been manufacturing industrial and decorative coatings in South India.

Valuations:

The EPS was Rs. 4.42, compared to Rs.3.68 in June 2021. The ROCE and ROE were at 29.6% and 22.6%, respectively. The stock was trading at a P/E ratio of 94.3x. The company has an asset turnover ratio was 1.45x.The scrip is trading at Rs.2339, down by 6.65% on Friday.

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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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