Trade Talk | JFS To Demerge From RIL Today
Transcript
00:00 Hello and welcome to BQ Primal. Very good morning to all the viewers. I am Hiral Dadia
00:05 and with me is Neeraj. Good morning, Neeraj. Clearly, the bulls and the bears are actually
00:10 battling it out, at least in terms of yesterday's session as well. And support levels have started
00:15 to move higher from here on. Yeah, I mean, it was a day of heavyweight participation
00:18 yesterday for sure. Good morning, of course, to you and the viewers. It's great to be on
00:22 the show, of course. But yeah, yesterday we saw banks, yesterday we saw Reliance do really
00:27 well and take the markets apart. Some of it could also be attributed to delivery-based
00:31 buying that could have happened in Reliance ahead of this big event today, which we'll
00:34 talk about in just a moment. But the other aspect to look at it is that pockets which
00:39 hold some promise and undervaluation stood firm as a rock in yesterday's session, particularly
00:47 the PSU pack. Yesterday, till 2.30 when the rally had not even started, PSU stayed very
00:54 steady about a percent higher, percent and a half higher for the PSU bank index, for
00:57 the PSU index as well, CPS ETF. So, the going is good in certain pockets of the market.
01:03 But one shouldn't not expect a corrective move at any point of time because we had such
01:08 a splendid rally led by FI Zero that, you know. And I think they are the ones who are
01:13 supporting the markets. And if you see in terms of the F&O data as well, clearly, you
01:17 are seeing positions that are being built at 20,000. And that probably is giving us
01:22 an indication that at least by the end of this expiry, which is the July expiry, we
01:26 could see markets come to that 20,000 level. And probably that's when we will see that
01:31 kind of profit booking play in. Yeah, so that could happen on the near term trade. You would
01:35 have analyzed it much better. But you know, the simple point is that it's still a rally
01:38 of disbelief, right? People are still saying that, oh, it's rallied so much now, maybe
01:42 it will start correcting. People are not all in currently. So that is one aspect. And two,
01:47 somehow this whole equation around what Indian markets could do over the medium term has
01:51 changed so dramatically that people are confident. Let's put in the money to work. It may correct
01:56 by 7%, but we're looking at much higher levels. So for no harm, the near term trade is separate.
02:01 But the long term trade, people are willing to put in money to work currently in expensive
02:04 stocks as well, believing that the growth numbers will very likely be much, much better.
02:08 So that's a bit of a support. And plus, the participation of Bank Nifty is going to be
02:14 absolutely crucial from your own as well as IT, because the kind of rally we've started
02:18 to see in IT, how sustainable that is going to be, and how much it will support markets
02:22 is going to be important.
02:23 Yeah. And also keeping in mind the fact that one, we'll have Infi come out with numbers
02:27 which will probably be better than what TCS, HCL Tech or Wipro have done. But is some of
02:31 that in the price? Because a lot of traders that you and I have spoken to are already
02:35 pre-positioned for good numbers on Infi. So could it be a case of sell-off if the numbers
02:40 are not exactly up to the mark of expectations? But it's a busy day, busy next two days for
02:45 IT. Infi, Emphasis, Persistence, a few others. So it could be interesting.
02:49 And in today's session as well, Neeraj, key is going to be yesterday, as you mentioned,
02:54 we did see buying from the heavyweights, Reliance specifically and an HDFC as well. The contribution
02:59 was really strong. Now, in today's session for Reliance, it's going to be interesting,
03:03 right? Because people will actually start building positions on the F&O side, the ones
03:08 who already squared it off yesterday.
03:09 Yeah, that's the valid point. And I think we'll get in on this soon, but I think you
03:15 nailed it on the head, right? Because people unravelled F&O, took cash because the contracts
03:19 were expiring. 10 a.m. for the first time, we'll see Reliance F&O positions start trading
03:24 at 10 instead of 9.15. So it's going to be an interesting day of trade for sure.
03:28 Absolutely. I think let's get in, Devyan Choksi as well to discuss more on this. Welcome to
03:34 the show, Devyan. My first question coming to you on this one is now, as we know, it
03:39 is the record date with regards to the demerger. Overall, how do you expect the price discovery
03:45 and everything to pan out from here on, your initial comments?
03:49 Good morning, Kiran. Good morning, Miraj. Well, I believe that the market is going to
03:56 be smarter and it's going to price it well, I suppose. Let's look at some of the numbers
04:01 which are possible as far as the pricing aspect is concerned. I'm not looking at, I think,
04:06 how the Reliance Geo Financial Services is going to be priced in the index at Rs. 100
04:13 for the sake of calculation of index movement. But I'm also looking at the book value of
04:18 the share and I think the possible buying interest that Reliance Geo Financial Services
04:23 will end up attracting. Along with the treasury stocks of Reliance Industry and I think cash
04:29 network that the company has, I think we are talking about somewhere around 130-140,000
04:35 crores worth of cash network in the books of Geo Financial Services. And even if we
04:41 assume one is to one, or rather I think one time price to book ratio, then also I think
04:49 we are talking about close to 1,50,000 crores worth of the number as far as Geo Financial
04:55 Services is concerned from the market cap point of view. We dug that market cap out
04:59 of 19 lakh crores worth of market cap of combined Reliance of yesterday. I think that could
05:04 possibly mean that Reliance Industry would assume the trading at around 17.5 lakh crore
05:11 market cap and Geo Financial Services could assume trading at around 1,50,000 crore market
05:16 cap, which would translate to anywhere price of 150 or so, whatever it is, or 150 to 200
05:23 in between, given the kind of I think discovery process, I think it could be anywhere between
05:27 150 to 200. My personal take would be that it would be closer to 200. That is where I
05:33 probably would like to stay. Now, given that kind of a situation, I think Geo Financial
05:39 Services could probably talk about much in detail hereafter from its business model point
05:44 of view. And I would love to share my thoughts on that critical aspect as and when we talk
05:48 in the show today.
05:49 In fact, Deven, let's bring that in, right? Because for everybody who's trying to understand
05:56 what to do with their holdings in Reliance, they will get two shares at 10. And while
06:00 there is a constant price out there, there's a lot of reference, Deven, being made to what
06:04 happened to Bajaj Finance when it split from the Aswal Bajaj Group back then. Who knew
06:08 it will become the behemoth that it has become? Now, it would be wrong to compare and say
06:12 that Reliance will do the same. But I'm just trying to understand, how do you think people
06:16 should approach both of these entities as and when they have the option to get out of
06:22 both? Should they stick on? Should they book profits? Or should they stick on for the really
06:26 long term? And why?
06:28 Fair question, Neeraj. Let me explain, I think, what exactly my thought process on the subject
06:34 and analysis on the subject is. Jio Financial Services is starting with a very, very strong
06:41 possibility of having the customer in its hold. Because in Reliance retail, you already
06:48 have the customers coming through the physical stores, which are 18,000 plus. They also come
06:53 to Reliance retail's e-commerce platforms like AGO as well as JioMart. And that is where,
06:59 again, I think the omnichannel presence is being created for the customer. At the same
07:04 time, I think those customers are also included B2B customers, those Kirala stores, those
07:09 Sakari Bandas, which are already part of Reliance retail's grocery business. They are also part
07:15 of this particular platform. So I think, very good proposition to start with for an NBFC
07:21 company, that they have customers in place for them. Along with that, you have Jio platform,
07:27 in which you have got the mobile customer, enterprise customers, the home customers.
07:32 All these customers are there and Jio platform is basically offering all the commercial services
07:38 at the same time. So there is a bunch of customer available and that's not a small number. I
07:43 think you can track around 44, 45 crores customers, I think, physically, I think we are talking
07:49 about. So from a perspective of looking at the customer base, including in money control,
07:54 which is a site, I think, where you have got the maximum number of customers available,
08:00 subscribers available onto the platform for financial production services. If all of them
08:05 combine together and put across, I think, the respective business proposition of funding
08:10 these customers, either Kirala stores on a B2B basis or retail customers on a B2C basis,
08:17 I think what we are talking about is a sizeable, large, addressable market that we are talking
08:21 about. Now, compared with, I think, what Bajaj Finance have done in the last 15 years or
08:27 so, I think that would be something which will give an indication of what Jio Financial
08:31 Services could do. Bajaj Finance, as of today, after 15 years, I think, is a network of around
08:37 45,000 crores. Jio Financial Services is starting with a network of 150,000 crores. On the other
08:44 side, Bajaj Finance AUM book is 2,80,000 crores. Jio Finance Services, given the kind of lending
08:51 ability that they would have and given the kind of prospect that they would have, they
08:55 start with an assumption of lending book of around 7.5 lakh crores. All these possibilities
09:01 are going to materialize, provided, I think, they have the organization in place, where
09:05 you have the technology in the front and people at the back to deliver the entire services.
09:10 In my viewpoint, I think Jio platforms has a technological advantage too, wherein I think
09:16 they could distribute the financial products and services to all these customers, given
09:21 the kind of strength that they have. Money is not a constraint, given the size of the
09:25 balance sheet that they have. So, if all the ingredients are in place, Jio Financial Services
09:30 could be, I think, who knows, I think, what many number of times multi-bagger opportunity
09:34 it is. But my take would be that in next three to five years, suppose if the loan book is
09:39 between 7.5 lakh crores or 10 lakh crores, then in such situation, we are talking about
09:44 8% to 10% leave on a conservative side, because of the subvention pricing mechanism that they
09:49 would follow, I would think that I think they would assume a significantly large amount
09:54 of market capitalization going forward. And that is where I believe that I think it could
09:58 be a multi-bagger. I would not be surprised if it is, I think, five times from current
10:03 levels, I think, of the list. So, let's wait and see how exactly it turns out. Nothing
10:07 is happening tomorrow. As I said, business will have to travel, I think, over next three
10:10 to five years. But this is a possibility on which they are working.
10:13 Right. I think, Devya, I was going to take the next question with you on valuations,
10:17 but you've clearly summed it up really well. You know, five times is the kind of opportunity
10:21 what we're looking at. So, thank you so much for joining us on the show and sharing those
10:25 views as well. Neeraj, clearly, you know, from what Devyan was mentioning as well, and
10:30 as you know, we already have Sajith standing by, but Sajith just was offline telling us
10:34 right now as to what had happened in 2005, which was the previous demerger, right? Welcome,
10:40 Sajith. Welcome. Thank you.
10:41 If you could just refresh our memory in terms of the 2005 demerger and how was value unlocking
10:48 actually happening?
10:49 So, that was as a result of the group split that happened, right? Four companies got split
10:54 from Reliance Industries, and there was a similar pre-open session which happened at
11:00 that time, and value was assigned to the four subsidiaries of Reliance Industries, which
11:08 eventually went to the Anil Dhirubhai Ambani group, which there. And of course, that Reliance
11:12 gave a decent amount of returns, you know, it went up by nearly 30, 36% after that. And
11:19 we're going to see something similar here also, but what we're going to see here is
11:23 a FinTech arm, which is going to get demerged, and eventual value accretion to the shareholders,
11:29 which includes the promoter shareholders as well, because it's a vertical split, which
11:33 is coming in, in Reliance Industries, and that would be something to watch out for.
11:38 So, even if you assume that it's going to be around 180 to 200 rupees a share, based
11:43 on the discount price, which comes in today, we're looking at 120 to 130,000 crores, which
11:49 are 15 billion dollar valuation coming for JFS on day one, which is going to happen.
11:53 Okay, Sajith, very quickly, 30 seconds. What is it that you've gleaned the best out of
11:57 the various conversations that you would have had around this exercise and what could happen
12:01 ahead?
12:02 It's a business, it's a business which already has a good amount of treasury stocks to capitalize.
12:08 FinTech will take a lot of capital, that capital will come in through the treasury stock and
12:12 that will be monetized to get. So, you know, it doesn't need fresh investment unless Reliance
12:18 decides, or JFS decides, because Reliance will not have any stake in JFS, unless Mukesh
12:24 Mani decides that he wants to get the strategy invested.
12:27 Got it. Okay, interesting. Now, Sajith, the other big thing, aside of Reliance, there's
12:31 a market beyond Reliance.
12:32 Yes.
12:33 It's a result heavy trading.
12:34 It's a result heavy trading, yeah, yeah. So, HUL, let's talk about it.
12:38 Okay, so, you know, interesting thing coming up from there, good volume growth coming in,
12:42 8 to 9% of volume growth, led by the home and personal care segment for HUL, which will
12:49 eventually translate into nearly say 15 to 16% growth in net profit in Q1 for them. What
12:56 is important to look at is primarily some of the drivers which have been pushing volume
13:02 growth, which is home and personal care, and impact of, you know, the raw material prices.
13:08 Prices have fallen, but that impact may not be seen in the P&L because they may have compensated
13:16 with higher spends, marketing spends, because, you know, you are seeing some of the segments,
13:21 food and beverage segments, where the growth is very sluggish, 5 to 6% growth. Dabar came
13:26 out with a similar kind of commentary saying that F&B growth will be muted 5 to 6% as compared
13:32 to HPC, which will be near double digit growth coming in for HUL. So, that's something which
13:37 we need to watch out for. And also, the kind of margin picture which will come in. They've
13:44 been looking at margin, but will they be able to get market share? Because we see a trend
13:49 now that the bigger players are not reducing the prices much, and that's leading to come
13:56 back of an unorganized sector, which is coming in, you know, eating into their market. So,
14:01 we're going to see that kind of a commentary also.
14:03 But the most important one is the margin?
14:05 Margin will be one. And whether they want to bring down the prices, because they've
14:09 not been able to. Top players haven't brought down the prices so much, because even though
14:14 raw material prices have fallen from the peak, they're still ahead, higher than last year.
14:20 Never happens, Sajit. The prices weren't gone up, they never come down. If they don't come
14:24 down, they lose the market share. That's the thing.
14:26 Yeah, and I think we've been talking about a price war in FMCG. And plus, there's a change
14:29 of guard as well at FMCG, right, with Rohit Jawa coming in. So, what his strategy is going
14:34 to be is going to be important from here on as well.
14:36 Should be interesting. Sajit, thanks for that.
14:39 Absolutely. Apart from this, Infosys is another one, Neeraj, which will be reporting numbers
14:45 today. An interesting trend that I've seen in this quarter is a lot of these companies
14:49 have actually announced a lot of deal wins just before the earnings, which usually has
14:53 never been the trend, right? So, that's going to be an aspect we need to watch out for.
14:57 In fact, Dishar is standing by with more details. Good morning, Dishar.
15:00 Hi, you just replaced Sajit. Yeah, I just... Okay, now tell us, replace HUL with Infosys.
15:04 So, Infosys, if you remember, Q4 was a shocker. It was a... If a shocker worse than that,
15:10 it was a howler. So, what the commentary at that point of time, what Analyst said at that
15:14 point of time, it will have a dampening effect in all of FY24, and a recovery is likely only
15:19 in FY25. We have the Bloomberg estimates right now. Results are... If Bloomberg estimates
15:28 are anything to go by, we are looking at a 5% growth, revenue growth in FY24 now. So,
15:36 essentially, if that happens, that will only be possible if the dealmaking comes in as
15:42 what he has said right now. So, if the dealmaking does not happen, then the 5% guidance will
15:47 also be at risk right now. Okay. So, you're watching out for the guidance numbers is the
15:52 most important thing? Yes, the most important thing right now would be the guidance numbers,
15:56 what Infosys says right now. Especially... And what's that number? They need to guide
16:00 to what number? So, they guided at the end of Q4 at 4 to 7%. Okay. What Bloomberg Intelligence
16:05 says it should be around 5%. That also contingent on the fact that Infosys has stellar dealmaking
16:10 in the first quarter. Okay. That's what they are guiding. So, that's what's to be watched
16:14 out for. Watched out. Okay, great. Now, anything else on Infosys or should we move to Tata
16:18 Com? Let's move to Tata Com. Okay, Tata Com. What did you make of the numbers? Tata Com,
16:21 we see that the profit is down 30%. That's mostly due to the higher interest costs and
16:27 lower forex gains that they had. The digital portfolio, however, is up 37% odd or something.
16:33 The digital revenue is also about 35%. So, there's a plus there. Overall revenue is about
16:37 11% up. The digital portfolio has gained a lot from the integration of the past acquisition
16:43 of a company called The Switch. During the quarter, they also made another acquisition
16:47 of Caleria for $100 million. That should also start paying off. The CEO so far said that
16:53 they are on track or on its execution strategy. There's a transformation that they are undergoing
16:58 right now. So, they are guiding for a better future. Let's see how the rest of the fiscal
17:04 pipe ends out. Thanks, Nishant, for getting us the details. In fact, Neeraj will be speaking
17:08 to the management as well this morning. So, I think you will be able to catch up a lot
17:12 of points in terms of what's worked and what's not worked. But apart from Tata Communication,
17:17 a lot of other smaller companies that have reported numbers emerge. A quick one in terms
17:21 of which other numbers you've tracked and what are the key takeaways. Right. A bunch
17:24 of earnings were in focus yesterday, starting off with Hatson Agro. The revenues were up
17:28 by about 7% on a year-on-year basis and stood at roughly Rs. 2,150 crores. The net profit
17:33 also surged by 54% on a year-on-year basis and stood at Rs. 80 crores. This was backed
17:38 by the margin improving from 8.84% to 11.06% now. Moving on to L&T Finance, which reported
17:46 some encouraging numbers. The net profit doubled up to approximately Rs. 530 odd crores on
17:51 the back of strong growth in rural group and microfinance loans. And credit cost also reduced
17:56 sharply by approximately 40% over the previous year. Net interest margin also improved by
18:02 roughly 152 basis points and now stands at 8.06%. The company is ahead of its target
18:07 set out in Luxaire 2026, where they aim on complete retailisation. Their retail book
18:13 grew at 34% on a year-on-year basis, whereas their wholesale book noted a reduction of
18:18 65%. And the overall mix also stands at 82% and 18% respectively. Coming on to Canfin
18:25 Homes, their interest income was up 35% and their net profits were up by roughly 13%.
18:31 And they continue to maintain 73% of their loan book for salaried professionals. And
18:36 housing forms 89% of the loan book, which reflects a strong demand post-COVID for housing
18:43 loans. As per brokerages, Jeffries maintains a buy rating with a target price of 850, whereas
18:48 Morgan Stanley remains equal weight on the company with a target price of 640. Then moving
18:55 on to Finolix Industries, their revenues were down 1% due to corrections in PVC prices since
19:01 July 2022. But PVC pipes and fitting volumes registered a growth of 28%, while there was
19:07 a 27% decrease noted in PVC resin volumes, which now stand at roughly 46,000 megatons.
19:15 And these were a summarisation of all the earnings. And that's a wrap from my side.
19:20 Thanks. Thanks so much for that. So a lot of interesting earnings to watch out for Hacks
19:24 and Agro seem very, very interesting. So let's see if that stock reacts this morning. Now,
19:28 a couple of pharma stocks in focus today. One of them is Dr. Reddy's, the other one
19:33 is Sun Pharma. Monal is standing by to tell us why are these stocks in focus? Monal, good
19:39 morning. Good morning, Eeraj. Yeah, so Sun Pharma has been in focus. I mean, it's actually
19:46 announced a deal. So it had its entire subsidy, the US-based subsidiary. And it had proposed
19:52 that it's going to acquire shares for $38 in tariff. Now, Crenn Savage Asset Management,
19:58 which is the largest minority shareholder of the company, has come out with a very savage
20:03 statement, so to say, very true to its name. It said that the offer is paltry and that
20:10 Sun Pharma is ignoring the control premium that it's supposed to give to Tarot. It also
20:17 said that it's ignoring the 22 tentative approvals that the company, the 22 generic drug approvals
20:23 that are pending in the US, including four tentative ones. It said that the offer of
20:28 $38 per share is pretty inadequate, and that is at a discount of 17% to the value of its
20:33 tangible assets, like Tarot's tangible assets. So if the company were to be liquidated, the
20:38 shareholders would still get $45 per share. So that's a very, very strong allegation there.
20:44 And it said that this is a repeat history because in 2011, also Sun had made a very
20:49 low offer, post which the offer was rejected by the minority shareholders and it had offered
20:54 a premium of 60%. So now it is saying that it's barely offering $16 million for over
21:01 and above the Tarot's cash balance for the remaining 81 lakh shares that it's planning
21:06 to acquire in Tarot. So let's see what happens. Analysts were very, very positive when the
21:10 initial announcement was made. But now if the offer were to change and modify, we need
21:17 to wait and watch on how this is going to impact Sun Pharma. That's one. Now, moving
21:23 on to Dr. Reddy's. So Dr. Reddy's API manufacturing facility at Shrikakulam yesterday, the company
21:29 came out with a statement and said that no action was indicated and no observations were
21:34 made. Now this inspection took place between July 10 to 19. It's a positive because it
21:39 was a pre-approval inspection. So there may be some pending products from the facility
21:46 that are awaiting approval. So that should be a clear. Also, it was a routine good manufacturing
21:50 practices checkup. So this clearance of the plant is a positive, absolutely. Also, this
21:56 kind of indicates a trend that the US FDA, of course, has increased a lot of inspections
22:00 in India. And last year, we'd seen a very high incidence of observations that are coming
22:06 in. But this year, we've seen a lot of positives with voluntary action, no action. It's a great
22:11 thing. It's a sign that we're heading in the right direction.
22:14 Thanks, Monal, for getting us the details. So two stocks, one could see a positive reaction,
22:18 one could see a negative reaction in trade. So let's see how the markets take the news
22:22 so far. But moving on, the metal industry is going to be in focus, especially the aluminium
22:26 players. Rishi, good morning. Alcoa has reported numbers, and that usually sets the trend in
22:33 terms of what could be expected for the Indian players as well, right?
22:37 Yeah. So Alcoa reported second quarter numbers and it reported an earnings of $137 million.
22:42 And it missed an estimate, missed the estimates of $158 million. Its sales also fell by 26%
22:49 year on year to $2.68 billion. Now, globally, market participants generally look at Alcoa
22:55 to get an indication of how the metals market will perform. And this earnings miss will
23:00 likely set a trend for Indian companies, which includes Hindalco, Vedanta, as well as Nalco
23:07 as well. Right. So that's with regards to so, you know,
23:11 the metal players will be in focus. But an interesting one, Neeraj, to catch is MK reported
23:15 Maruti. They have a target price of 11,000 already, which is the new milestone. What
23:20 is it that they are betting big on, Rishi? So MK was basically clarifying on the fact
23:25 that basically the Maruti Suzuki stock has underperformed the auto index by about 8%
23:31 in 2023. So it was just clarifying on various investor concerns. So firstly, investors were
23:37 concerned about whether or not the new products had an adequate demand. Now, MK's checks suggested
23:43 that there was actually a strong demand, especially for the recent SUV launches, including Jimny,
23:47 as well as for the most recent Invicta launches. The SUVs are actually facing a waitlist in
23:52 the range of 30 lakhs to over 1 crore, despite the company also reporting very high volumes.
23:58 Now, the domestic market share of the company is expected to rise to 45% by FY25 compared
24:04 to the current 41.4% in FY23. Now, against the general perception of it being behind
24:13 being a laggard in the EV space, it is planning to introduce a completely grounds up pure
24:19 EV from October 2024. So that's something to look out for as well.
24:23 Okay, thanks for that, Rishi. And watch out for these as well. Now, the other thing is,
24:28 we already know about the key large newsmakers of the day today and some of the results that
24:34 are to be anticipated. So we already know about those pockets. The key to figure out
24:38 is now what about some of the other smaller stocks, which might be news and might have
24:42 a bit of a reaction. So let's get in Varsha on that. Varsha, good morning.
24:45 Good morning. So there are many stocks that one needs to watch out. So the first one we
24:49 have is Mastec. So the company signed an agreement to acquire Biz Analytica for an upfront payment
24:54 of rupees almost 137 crore. And this is to boost its generative AI and data and cloud
25:00 capabilities. The next company that we have is LIC Satpal Bhanu, an additional zonal manager
25:07 at Zonal Office LIC of India Bhopal has been appointed as managing director of LIC India.
25:13 The next company that we have is Electra Green Tech, an electric bus manufacturer which has
25:17 awarded 395 crore contract to Megha Engineering and Infrastructure to construct a green field
25:24 electric vehicle manufacturing facility at Sita Rampur Hyderabad. Now note, the Megha
25:30 Engineering and Infrastructure is actually the ultimate holding company and related party
25:35 to Electra. The next company that we have is Federal Bank. The bank launched an QIP
25:42 and fixed the floor price at rupees 132 per share. Now the floor price is actually a discount
25:48 of 2% as against the current market price. Then the next company that we have is Transformers
25:53 and Rectifiers. So Gujarat Energy Transmission Corporation has decided to stop dealing with
25:59 Transformers and Rectifiers for a period of 3 years. Now why? The stop deal notice is on the
26:03 ground that the company has submitted and forged material dispatch clearance certificate for certain
26:09 Transformers supplied. The last company that we have is Shree Cement. Now the company has received
26:14 an inspection notice from the Ministry of Corporate Affairs under section 206 of section 5 of the
26:20 Companies Act 2013. Now the above section states that the central government may direct inspection
26:27 of books and papers of a company by an inspector appointed by it for the purpose. Now note that in
26:33 June 2023, there was this report on tax evasion of almost 23,000 crore by this company. Yeah,
26:39 well, yesterday, Hiro had a similar notice, the stock didn't budge. So let's see if Shree Cement
26:43 does that. Thanks for that, Varsha. So lots of stocks in news, lots of stocks which might have
26:46 actually a negative impact as well, Hiral. That is Transformers and Rectifiers, Krishna Diagnostics,
26:50 Shree Cement, Sun Pharma maybe because of the negative news on the tarot part of it. Yeah,
26:55 so lots of things to monitor. Absolutely. And I think we're just in time with regards to Reliance's
27:01 pre-open. So please stay tuned to BQ Prime to understand what's happening with Reliance
27:05 Industries from here on and the length of the show clearly tells you how busy the day is going to be
27:10 for all of us here at BQ Prime. That's all that we have in this session. Thanks for watching. Lots
27:14 more lined up on the other side. Please stay tuned. And that's a wrap from Neeraj and myself.
27:27 Thanks.
27:27 Transcribed by https://otter.ai