Trade Talk | Markets Break 7-Day Winning Streak, What's Next?
- Markets break 7-day winning streak, what's next?
- Stocks to keep on your radar
All this and more on Trade Talk with Alex Mathew and Hiral Dadia. #BQLive
- Stocks to keep on your radar
All this and more on Trade Talk with Alex Mathew and Hiral Dadia. #BQLive
Transcript
00:00 Good morning and thanks so much for tuning in. You're watching Trade Talk on BQ Prime.
00:03 My name is Alex Mathew and with me is Heeral Dadia. Morning.
00:06 Good morning, Alex.
00:07 Well, yeah, so yeah.
00:08 I mean, what I was going to tell you right now was that though the markets have not really
00:13 enthused investors, I'm sure Apple has.
00:16 Oh, certainly. Well, I think a lot of Android users will wonder what the big change is because
00:22 Apple has finally bitten the bullet and gotten Type C USB chargers or rather the port for
00:28 both its iPhone as well as the AirPods.
00:32 And I think a lot of Android users will say, hey, you know, we've had this for a long time.
00:36 Absolutely. And iPhone 15 starting with 79, 800 is something which is really a dream for
00:43 someone who wants to buy an Apple phone because usually you've always seen a pricing which
00:47 is way above.
00:48 Yeah. And look at the the iPhone Pro, the 15 Pro and the Pro Plus, right? And that's
00:54 1.3, 1.6 lakh rupees.
00:58 It's we're still talking about buying a phone here.
01:00 Absolutely. Now, whether Android users will surrender to an Apple or not is what we need
01:06 to wait and watch, because that's something which will probably have an impact with stocks
01:11 like a Redington as well.
01:12 No, certainly. In fact, let's look at some of the action that you saw during the day
01:18 yesterday.
01:19 I missed a lot of that action.
01:21 And in fact, all of that happened in the broader market.
01:23 The benchmark, surprisingly, amidst that selling pressure, stayed pat at very close to that
01:29 20,000 mark.
01:30 Absolutely. You know, we opened at 20,000, 1.1, 0, which was the life high level in terms
01:34 of Nifty 50.
01:35 But clearly, we were talking about Android users surrendering.
01:39 But we have Nifty which already surrendered to the early gains that we saw at the markets.
01:44 We settled marginally in the red.
01:46 And this was after a seven day winning streak.
01:49 Overall, if you go to see a pretty volatile session, Alex, is what we've seen.
01:53 IT, that was the sector which was leading.
01:56 But apart from IT, a majority of the others which ended in the negative.
02:00 Broader markets was the actual highlight of the day yesterday.
02:04 You had the mid-cap index which shed 3% and the small-cap index which declined 4%.
02:09 If you see the overall market cap erosion on BSE, that was close to around 6 lakhs crores,
02:14 out of which you had the BSE small-cap index which saw around 2.5 lakh crores of market
02:19 cap erosion.
02:20 Whereas the mid-cap index which saw around 1.8, if you total that, that's 4.5 crores
02:26 out of the total 6 lakh crore of BSE market cap.
02:30 So major mayhem that we saw in terms of broader markets yesterday.
02:33 And the biggest cuts in nine months, right?
02:35 And I guess to a certain extent, this was something we were building towards with the
02:40 kind of run-ups that you saw in the small-cap as well as the mid-cap index.
02:44 For the small-cap index, of course, before yesterday's session, you were talking about
02:47 gains of what, 35% or more than 35% for 2023?
02:51 Absolutely.
02:52 And with the broader markets, the clear, if you see in terms of the trend, we'll go through
02:58 BSE stocks very quickly, but Bank Nifty itself is very wobbly right now, though it's just
03:05 2% away from its life-high levels, right?
03:06 So that's going to be interesting to watch out for.
03:09 Apart from that, if you see in terms of stocks, TCS was the bright star yesterday.
03:14 A 2.9% up move, strong volume build-up coming in on that one.
03:19 L&T, again, on the buyback announcement.
03:21 Infosys, DBS Laboratories, Artec Cement, these were stocks which were remaining absolutely
03:26 strong.
03:27 But interesting to see because yesterday FIs actually sold close to around 1100 crores
03:33 in the cash segment, and you had DIIs which bought around 260 odd crores.
03:39 So probably the kind of selling that we saw in the broader markets was also coming in
03:44 from the FIs.
03:45 And that's a conversation that we have been having since quite a lot of days wherein there
03:49 is a possibility that with the run-up that we've seen in the market, the FIs would start
03:53 offloading and that is something that could be concerning.
03:56 But will they come back into the large caps and help us hold those 20,000 levels is going
04:02 to be interesting.
04:03 Yeah.
04:04 And we've been talking about sector rotation, perhaps also market cap rotation from some
04:08 of those overvalued stocks.
04:09 Earlier in the week, of course, we saw that Kotak note that it seems like they threw up
04:14 their hands and said that they can't explain some of this.
04:17 I guess that's something that is playing out right now.
04:19 Absolutely.
04:20 And the PSUs are the ones which have seen the maximum downtick from PSU banks to your
04:27 insurance providers, railway stocks, Gujarat-based PSUs, power, shipping.
04:32 You name the sector that was under pressure.
04:34 In fact, even your market link stocks with regards to broken companies, your depositories
04:40 as well as AMCs, all of them saw cuts in that range of almost say 3% to 7% to 3% to 10%
04:47 yesterday.
04:48 So, you know the kind of impact we are already starting to see.
04:50 I guess to a certain extent, some of that is what we've seen over the years.
04:54 But I think our retail audience and retail investors have surprised repeatedly over the
05:00 last three years.
05:01 Every time that there is a substantial correction, they've used it as buying opportunities.
05:06 Of course, that needs to be based on strong research and advice.
05:11 And we have quite a few conversations lined up over the day to help you do just that.
05:16 But let's turn attention to the F&O queues that we've got and the direction that the
05:21 markets are taking.
05:23 Perhaps we can get an inkling from that data.
05:26 Agam is standing by to give you some perspective on that.
05:28 Agam, good morning.
05:29 Good morning.
05:30 What are you picking up?
05:31 So, the novices will call yesterday's day of trade perhaps puzzling.
05:35 The veterans will certainly call it profit-taking.
05:38 We hit lifetime highs and that's when some of them decided to perhaps at least take some
05:43 profits off the table.
05:44 And that's exactly how things have panned out.
05:46 As far as futures and options go, what we are keeping an eye on is, well, in futures
05:51 we really didn't see too much activity in terms of changes in open interest.
05:54 So, the Nifty OI saw an increase of around 0.5%.
05:59 Magnitie's September futures, on the other hand, saw a decline, a little bit of unwinding.
06:03 But do remember, today is the Bank Nifty expiry.
06:07 You know, Hiral was alluding to the fact that the Bank Nifty is looking a little wobbly.
06:11 What's really interesting is that on the day of expiry, we're actually looking at a 2000-point
06:18 range for the Nifty, which means that a lot of traders at this moment are very, well,
06:23 I would say reluctant to take over queues closer to the current market levels.
06:29 What we are keeping an eye on is, of course, the 45,000 mark on the lower end and the 46,000
06:35 mark on the higher end.
06:36 And that's where we do see a lot of, well, volatility to come through as far as the Bank
06:41 Nifty is concerned.
06:42 Moving on in terms of the Nifty, again, keeping an eye on the current levels, of course, the
06:48 20,000 mark is crucial, but we have seen maximum open interest around the 20,100 and the 19,900
06:54 mark.
06:55 That's where we are expecting to see a lot more activity.
06:57 Of course, this is a relatively closer loop as far as the Nifty is concerned.
07:02 In terms of the most active options, watching out for, well, these very same strikes, the
07:07 20,100, the 20,000 put, as well as the 19,950 put, where we did see a lot of, well, addition
07:14 in OI.
07:15 And finally, coming down to stocks, we're keeping an eye on REC and PFC.
07:18 Both these stocks had a superb run-up over the last one week, and now we're seeing profit-taking.
07:25 And Tata Power is the other one which is also down as much as 3.1%, and we saw some fresh
07:29 shots building in there.
07:30 So watching out for some of these names, but of course, Bank Nifty is what we're going
07:33 to keep an eye out on today.
07:35 Absolutely.
07:36 Bank Nifty is where all our eyes will be on.
07:39 And the levels that Agam has been mentioning as well, absolutely crucial to watch out for
07:43 because it's going to be interesting to see where the journey is from here on.
07:46 Thanks, Agam, for getting us the details.
07:48 But moving on, on the macro front, Alex, we did have the IAP and the CPI data which did
07:54 come in.
07:55 Overall, if you see from a retail inflation number, it's below what the street was expecting,
07:59 as well as the IAP as well.
08:01 So both the numbers-- IAP was above.
08:03 So, I mean, overall, yes, the numbers have been above what the street was estimating.
08:07 Now, in this gamut, how crude is going to fit in is going to be interesting because
08:12 we weren't really looking at somewhere $90 per barrel, right?
08:17 Now they will have to start pricing in crude at $90 per barrel.
08:20 And the second important aspect from an inflation perspective is though vegetables has come
08:25 down, you still have pulses which is increasing.
08:28 And if that continues to rise, that could be a risk.
08:31 And what the RBI does from a rate cut perspective, whether they maintain that status quo or not,
08:37 is going to be interesting to watch out for.
08:38 One small input here.
08:40 We did see a decline in food prices in the month of August.
08:44 But do remember that August was one of the driest, in fact, the driest month in the history
08:49 of IMD's recording of those numbers.
08:52 And that implication will perhaps come in the next month.
08:54 That's exactly what I mentioned, right?
08:55 That for pulses, the inflation has gone up.
08:58 And that's even in the August number.
09:00 So that will continue to probably have an impact.
09:03 And how crude fits in over here is going to be interesting.
09:06 In fact, Mika is standing by to get us more in terms of what it means because you have
09:11 OPEC, which is actually now hopping on a tight supply, right?
09:16 How is it impacting the prices?
09:18 How has crude moved yesterday?
09:20 And what do you see going forward?
09:22 So Brent crude hit its 10-month high of $92.32 per barrel yesterday.
09:28 And the MCX oil futures, due to expire on September 19, traded 1.82% higher at Rs.7,380
09:35 as the OPEC September monthly oil report came out and cut global oil demand and revealed
09:41 an expected oil supply shortage.
09:46 The latest oil OPEC report cut the 2023 global oil demand by 1 lakh barrels per day to 29.2
09:55 million barrels per day and projects a supply shortage of 3.3 million barrels per day in
10:00 the next three months.
10:01 If realized, this could be the biggest inventory drawdown since 2007, according to Bloomberg.
10:06 This was mainly on the back of the production cuts that were revealed by Saudi Arabia and
10:10 Russia, which planned to cut 1.3 million barrels per day until the year end.
10:16 And Riyadh also extended its voluntary production cuts by 1 million barrels per day till December.
10:23 So far this quarter, the OPEC members have pumped 27.4 million barrels per day, which
10:28 is roughly 1.8 million less than the global demand.
10:31 And if production levels remain as Saudi Arabia intends, the oil supply demand gap could almost
10:38 double in the last three months of this year, and OPEC estimates that we need 30.7 million
10:43 barrels per day in the fourth quarter to satisfy the consumption.
10:48 And the report kept the 2024 global outlook fairly unchanged, and the OPEC members and
10:53 its allies are due to meet November 26 to review the production policies for the year
10:58 ahead.
10:59 For India specifically, the report revealed that the July oil demand rose by 83,000 barrels
11:04 per day year-on-year, which was down by June's 184,000 barrels per day increase.
11:11 OPEC predicts the Q3 to surge to 70,000 barrels per day driven by the economic activity and
11:17 the ongoing air travel.
11:19 And the Q4 may see a slower demand, but the expected growth that they projected, which
11:24 is of 243,000 barrels per day, would be led by transportation fuels, mainly gasoline,
11:29 diesel, and jet.
11:30 And in terms of crude imports, they dropped for the fifth consecutive month, averaging
11:36 4.6 million barrels per day.
11:38 Russia remained the top supplier at 44 percent, followed by Iraq and Saudi at 20 percent and
11:43 11 percent.
11:44 Crude product exports fell 15 percent in July, but India still remained the net export producer
11:49 of 346,000 barrels per day.
11:53 And looking ahead, the OPEC projects low imports in August because the Russian crude imports
11:58 were down 25 percent.
11:59 All right.
12:00 So, Mika, just for the understanding of the viewers, with all of this data, which are
12:05 the stocks that actually get impacted from a crude price move perspective?
12:10 So first will obviously be the oil and gas sector.
12:12 This includes your upstream companies and your downstream companies.
12:16 In terms of upstream companies, these are oil exploration companies like Reliance,
12:20 ONGC, and Oil India.
12:22 And from the downstream perspective, it's your oil marketing companies and refineries.
12:26 So all of them.
12:27 All of them.
12:28 And also companies that use crude oil as a raw material.
12:32 This includes paint companies and tyre companies too.
12:35 So all of them.
12:36 And paint and tyre will be negative as well, taking 92 already into consideration.
12:41 And so you were talking about inflation, but when you have higher crude prices, you're
12:47 automatically importing inflation.
12:49 And so what you were saying makes a lot of sense, right, to watch that crude number very
12:53 closely.
12:54 Thank you so much, Mika, for bringing us that perspective.
12:57 Now, another sector that depends on rainfall – or not sector, I mean a stock or company
13:04 that depends on rainfall is Mahindra and Mahindra, to the extent that its rural sales of utility
13:11 vehicles as well as tractor sales get impacted by agricultural production.
13:16 Now, it's interesting because amidst this conversation about a deficient monsoon or
13:23 slightly below normal monsoon, you have HSBC that has come out with a note that has not
13:28 just retained its buy on M&M but raised its target price to imply an upside of 16% from
13:35 this point.
13:36 And this is a stock that has gained over 20% in the year today.
13:39 But what's interesting is that it might see a positive move today because yesterday we
13:43 did see stocks like M&M, Tata Motors really react negatively on the back of that one statement
13:49 that Hon.
13:50 Minister Nitin Gadkari made with regards to where GST on diesel engines is concerned.
13:55 He categorically came out and said that a 10% GST on diesel engines is what could be
14:01 considered.
14:02 And after the kind of fall that we saw, there was a retracement of that statement saying
14:07 that there's no proposal in the offing yet.
14:10 So that was something which really hammered auto counters yesterday.
14:13 Now, because of which I think the way it moves from here on is going to be interesting.
14:18 So but that's also interesting from the perspective of the mix between diesel and petrol.
14:24 After the change in the emission norms and us moving to BS6, a lot of auto companies
14:29 are actually letting go of their diesel models.
14:31 That's in the passenger vehicles, right?
14:32 Right.
14:33 CB portfolio is in that.
14:34 No, fair enough, fair enough.
14:35 But at least in the PV space or in the utility vehicle space that is directed towards retail
14:42 customers, this is not likely to have such a large impact because even M&M is moving
14:46 towards petrol.
14:48 But let's see how that pans out.
14:49 In the meanwhile, let's get a sense of what HSBC is saying in its note.
14:53 Saloni is standing by to give us some details on that.
14:56 Saloni, morning.
14:57 What are you picking up?
14:58 So as you said, HSBC is maintaining its buy rating on Mahindra and Mahindra and it has
15:02 increased the target price from 1700 to 1800, which is on the back of a moderate growth
15:08 and attractive risk to reward ratio.
15:10 So the company's tractor business has surprised everyone so far this year.
15:14 However, the underlying monsoon trends are not very encouraging.
15:18 But this downside in the tractor business is offset by the company's continued traction
15:23 in the SUV business and the market share gains that the company is getting in the light commercial
15:27 business.
15:28 So, good crop sowing is also supporting the near-term tractor demand.
15:35 Although the monsoon deficit and low reservoir levels will impact the demand for FY25.
15:40 So the brokerage's demand check is suggesting that there will be strong demand during the
15:44 festive seasons as the farmer's propensity to spend remains high on the back of strong
15:50 production over the last four years during monsoons.
15:53 As the company's SUV production is now also at par with its order intake run rate, it
16:00 should keep the waiting period within manageable levels and it should minimise cancellations.
16:04 And outside of SUVs, the light commercial vehicles industry growth has also slowed,
16:09 but the company's position has further consolidated with the long-term positive of market share
16:15 gains.
16:16 And this is interesting because though we are talking of an impact of monsoon coming
16:21 in, M&M is now, I mean brokerages are now betting big on how the SUV demand will actually
16:27 counter, you know, really take away that impact of the monsoon specifically from a tractor
16:32 business perspective.
16:33 You know, I started tracking auto back in 2011 and you also track the sector.
16:39 We've had several years over that period where either tractors have done well because of
16:45 an awesome monsoon or the utility vehicle sector has stepped in whenever there's a change
16:51 in norms and move towards SUVs for the passenger vehicle audience that one of their businesses
16:58 is doing well.
16:59 That 40% contribution to earnings for the tractor business is interesting to watch out
17:04 for because in the tractor business generally you will see that the margins are higher than
17:10 the other business.
17:11 Absolutely.
17:12 And with regards to SUVs as well, thanks for getting us the details Saloni.
17:15 With regards to SUVs, they have increased capacity as well and they are on the verge
17:20 of increasing it further.
17:21 So to meet the demand, they know where exactly because the waiting period for M&M is little
17:26 over a year, year and a half, two and that's something which is really, I mean, a long
17:31 time, right?
17:32 So the moment that increases, that is going to go well for M&M.
17:35 But moving on, a lot of railway stocks that continue to remain in focus yesterday, majority
17:40 of them did see profit booking.
17:43 But let's see if today's news actually is the one to enthuse them as well.
17:47 Varsha, standing by to get us more in terms of what's in focus.
17:50 So the first two companies that we are going to talk about are from railway sector.
17:54 So the first is Wright.
17:55 Now, the company has signed an MOU with Angola-based railway company CFM for cooperation in the
18:02 development of railway and related infrastructure.
18:04 Now as part of MOU, Wright and CFM will collaborate in areas such as supply of rolling stock,
18:11 railway infrastructure projects, repairing of rolling stock, IT services and much more.
18:16 This MOU highlights companies' efforts under the strategic initiative Rights Vidhesh.
18:21 And next we have IRCTC, where the company has signed an MOU with NBCC services for planning,
18:26 designing and execution of interior work for its upcoming space in Delhi.
18:31 And the cost of projects is around Rs. 31 crores.
18:33 Then we have KEC International, where company has won new orders of Rs. almost Rs. 1000
18:37 crores across its various businesses and civil transmission and distribution and cable segments.
18:43 Now, the civil business bags order in the data center and FMCG segments where company
18:48 will build a data center in Western India and set up manufacturing facility for a global
18:53 FMCG major in Southern India.
18:56 Whereas company has secured orders for 765 kW transmission lines in India from an existing
19:02 private client.
19:03 Now, with all the above orders, year-to-date order intake stands over Rs. 6,500 crores,
19:08 implying a growth of 11% over last year.
19:11 Then lastly we have Vakrant Ghee, where the company will acquire 8.8% equity stake in
19:16 Vortex Engineering from International Finance Corporation.
19:19 Now, this is in addition to the earlier acquisition of 48.5% from Aavishkar Capital.
19:24 Now, through this acquisition, Vakrant Ghee will have cumulative shareholding of 57.3%,
19:30 thereby achieving backward integration, which would benefit in better operational controls
19:34 and scalability.
19:35 Now, Vortex is one of the leading providers of ATMs also.
19:39 Currently, Vakrant Ghee is the fourth largest ATM operator in rural India with 6,373 ATMs
19:46 and is planning to set up 15,000 ATMs by 2030.
19:50 Interesting.
19:51 Thanks so much for bringing us those details, Varsha.
19:54 A lot of updates, Hiral, in the power space as well.
19:57 In fact, Rishi is joining in to talk about a whole host of updates from the likes of
20:02 NTPC to G-Power, Vari Renewable.
20:06 What are you picking up, Rishi?
20:07 So, firstly, there's NTPC, which has completed the trial operation for the Unit 1 of an 800
20:12 megawatt capacity that is in Telangana.
20:14 It is a super thermal power project is what they're terming it as.
20:18 Now, with this, the installed capacity and they also, because the trial operation was
20:22 successful, they have added this to their installed capacity.
20:25 And for the overall NTPC group, it has increased to 73,800 megawatts.
20:31 And similarly, for the NTPC standalone operations, the capacity has increased to 57,800 megawatts.
20:37 Now, coming to Tata Power, one of its subsidiaries, which is Tata Power Solar Systems, which is
20:42 one of the largest integrated solar companies, has signed an MOU with SIDBI, that is the
20:48 Small Industries Development Bank of India to finance MSMEs for solar adoption.
20:52 Now, under this MOU, all the MSMEs that are willing to adopt for the rooftop solar PV
20:57 plant or the associated services from Tata Power will be eligible for financial assistance
21:02 from SIDBI.
21:03 They're also planning to have offer zero processing fees during the upcoming festive season to
21:09 provide a boost.
21:10 Then there's GMR Power and Urban Infra, which has increased its stake from 82% to 100% in
21:16 its smart electricity subsidiary.
21:18 It has acquired the remaining stake from GMR generation asset for 5 lakh rupees.
21:24 Then we have GE Power, which has received an order from Vedanta for the combustion modification
21:29 of a boiler.
21:30 And this order is worth 25 crores and is expected to be completed within the next 14 months.
21:35 Then we have Wadi Renewable Technologies.
21:38 So it has signed a letter of intent with one of India's leading power generation companies
21:43 for setting up a 52.6 megawatt solar power project.
21:48 And this includes an EPC project, particularly engineering, procurement, and construction
21:53 services.
21:54 And it is expected to be completed in FY24.
21:56 Right.
21:57 A whole host of names that are in focus, but again, your PSU Power stocks were under pressure
22:00 yesterday.
22:01 So let's see if we do a catch up on that.
22:04 Thanks Rishi for getting us the details as well.
22:06 But moving on, apart from the Powerpack names, you have banking names that could see a sentimental
22:12 move in today's session.
22:13 And that's because you have RPI, which has actually gone ahead and revised the norms
22:18 for the bank investments.
22:19 Now, what does this actually mean and whether this really impacts any banks, P&L or not
22:25 is what Himansh is going to tell us more about.
22:27 Good morning, Himansh.
22:28 Good morning, Geeril.
22:29 So the RBI came in with new norms for governing the investment portfolios of banks.
22:35 And this follows a discussion paper from January 2022, actually.
22:39 And these will be effective from the beginning of the next fiscal.
22:42 And this covers all commercial banks, but includes all the regional rural banks.
22:47 So what are these regulations?
22:49 They have essentially just tweaked the norms and the way banks categorize the investment
22:52 portfolios into three main groups, which are primarily held to maturity.
22:56 The first one, secondly, available for sale.
22:58 And third is the fair value through profit and loss.
23:01 And this is a new category.
23:02 FVTPL is a recently introduced category that has a broader ambit compared to the previous
23:08 way of categorizing investments.
23:10 And it pretty much includes everything beyond the first two categories.
23:14 It includes investments such as equity shares that aren't related to subsidiaries, associates,
23:19 or joint ventures.
23:21 These investments will also be recognized in a separate account.
23:25 Then secondly, investments in various funds such as mutual funds, alternative investment
23:29 funds, and real estates are going to be recognized in it.
23:32 And then investment in securitization notes and bonds and debentures, where the payments
23:37 are linked to certain metrics such as indexes.
23:40 So when the bonds value keeps fluctuating, they will have to be tracked separately.
23:45 If FVTPL category must be assessed on the fair market value, and any resulting gains
23:49 and losses will directly be credited to the bank's P&L.
23:52 Now these mainly have implications on how the banks report their investments and how
23:56 they report their profits.
23:58 And it's essentially, you know, for those who are viewing the books of these banks and
24:03 the banks themselves on how they report it, they're expected to bring in more transparency
24:07 as to how these banks report their numbers from here on.
24:10 Okay, all right.
24:11 And I'm sure that we'll look at the individual books of these banks to identify what the
24:16 implications are.
24:18 You also have an update on RR Cable.
24:20 It's another new entrant for the equity markets action in the primary market.
24:27 What can you tell us about this issue?
24:28 Right, Alex.
24:29 It's one of the many who are expected to hit the primary markets in the second half.
24:32 And it's been looking very optimistic.
24:34 So RR Cable is a Mumbai-based wire and fast-moving electrical goods manufacturer.
24:39 That is, and its offer opens today.
24:41 The price band is set between 983 and 1035.
24:46 And the offer, the issue is expected, is set to close day after tomorrow on September 15.
24:50 Now, the fresh issue is of 180 crores and the total issue size is of 1964 crores.
24:56 And this is primarily an exit for the private equity player TPG Investments.
25:00 Now, like I mentioned, the business is primarily across two product segments, wires and cables,
25:06 and fast-moving electrical goods comprises of fans, lighting, switches, and appliances.
25:11 And the proceeds from the fresh issue will be used to repay and prepay their borrowings.
25:16 And they've allocated about 136 crores.
25:19 Their total debt as of the last quarter gone by stands at 403 crores.
25:24 Now, the post-offer shareholding pattern will see some diluting of about 4% in the promoter
25:30 shareholding.
25:32 And the company is valued at over 11,000 crores.
25:35 Now, mainly what's looking good for this company is that RR Cable can get on the bandwagon
25:42 of the EV push as well as the data centers that are coming up, as well as the boom that
25:46 you're seeing in the housing and the commercial, you know, project, real estate market, per
25:52 se.
25:53 So it's a very strong presence in the West and North, and 27% of its revenue comes from
25:57 overseas exports.
25:58 And lastly, a couple of pointers for the viewers to note that the company incurred losses in
26:04 the fast-moving electrical goods business for the past previous three fiscals.
26:08 And the company also derives its revenue mainly from the manufacture and supply of cables,
26:14 which account for almost 80 to 90% of its revenue.
26:17 So it's also very vulnerable to price shocks in these metals, specifically aluminum and
26:21 copper.
26:22 So these are key monitorables.
26:23 But overall, let's see how the IPO performs once it sets in the primary markets.
26:27 Absolutely.
26:28 It's going to be interesting to watch out for as well.
26:30 And let's see how the peers react in trade as well.
26:33 Thanks so much for getting us the details.
26:35 So Alex, overall, a lot of action that we will be watching out for in the primary as
26:39 well as the secondary market.
26:41 And if you see SGX, I mean, GIFT Nifty as well, that is indicating a positive start
26:46 to an extent.
26:47 But if that's going to be sustainable or not is going to be anyone's guess.
26:51 So let's wait and watch and see what is in store for all of us in the markets today.
26:56 That's all that we have in this session.
26:57 Thanks for watching.
26:58 And lots more lined up on the other side.
27:00 Please stay tuned to BQPrime.
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