NDTV Profit | Large Trades | Live Business News
Category
🗞
NewsTranscript
00:00 Hello and welcome. This is Large Trades. I am Agam Vakil. In this show, we talk about
00:11 bug deals, block trades, as well as all the stocks which are buzzing in trade today. Now,
00:19 we're going to talk about plenty of things. But before that, a quick look at the markets
00:24 for now, which are trending marginally in the red. And we're not seeing too much traction with
00:30 respect to the benchmarks at the moment. In fact, it's been yet another quiet day. And remember that
00:35 it is the Finn Nifty expiry today. We certainly have seen a slight slide for the benchmarks. In
00:41 fact, currently, the Nifty trading at near-day lows. And as far as the Bank Nifty is concerned,
00:46 the picture is not very different there either. Do remember that the Finn Nifty index will also
00:52 be in focus because of the weekly options expiry. And because of that, keeping an eye on how things
00:58 are panning out there as well, if we could in fact have the finance index up for you on your screen
01:03 and see whether or not there has been a substantial change. Of course, that is going to largely move
01:08 in tandem with the Nifty Bank. And there you have it. That's also trading near-day lows.
01:13 But this is as far as your markets go. A quick look at your broader market indices as well before
01:19 we move on. We are talking about the Mid-Cap Index, of course, which is also lower and is the same for
01:25 the Small Cap Index. So, all of them largely moving in tandem with the benchmarks except for the Small
01:31 Cap Index, which is in fact currently trending marginally in the green. Now, as far as today's
01:36 show is concerned, we're talking about Mankind Pharma, obviously, on the back of that big
01:40 bulk deal. We're also addressing what's happening with BLS International, JTEC India, Safari
01:46 Industries and of course, Jammu and Kashmir Bank. All of these will be in focus. But we start off
01:53 with Mankind Pharma and that is where we have seen a huge bulk deal. And through that, we've seen a
02:00 lot of equity change hands as well. And for that, we are joined by my colleague Varsha, who's going
02:06 to tell us a little more about that. Varsha, good afternoon. Let's start off with the basics in terms
02:11 of the deal. What can you tell us? So, if you see, Agam, Mankind Pharma was down almost 4% in trade
02:17 today. Now, this was on the back of large trade, almost 7.6% equity change hands. Now, the large
02:24 deal was at a price range between Rs 1,832 to Rs 1,841 per share. Now, the deal is valued at almost
02:31 Rs 6,275 crore. Right. Varsha, can you tell us a little more about whether or not we do know who
02:38 the buyers and sellers are? And also, I believe there is a lock-in element in this case.
02:42 So, Agam, currently, buyers and sellers are not known immediately, but there are three PE
02:47 investors who have got good stake in this company. So, if you see, Beech Limited has almost 7.46%
02:53 stake. Hema CIP, PF almost have almost 3.63% stake. And also, the lock-in period for these PE
03:02 investors have ended in November 23. 28 crore shares were released in November 23. And the
03:08 value, the current value of those 28 crore shares stands at almost Rs 9,800 crore.
03:13 Very interesting deals. But Varsha, why don't you tell us about the Nuwama note,
03:17 where they have also suggested some changes on the company. Tell us a little more about that.
03:23 So, Agam, the current free float, according to Nuwama, stands at almost 10%. And they are
03:29 expecting a significant increase in this free float post this transaction. Also, there is a
03:34 potential of stock being included in MSCI Standard Index in Feb 24 if the stock crosses almost 2,250
03:42 levels by Jan 17, 2024. And also, they estimate a potential inflow of almost 112 million US dollars,
03:50 which is equivalent to 4.8 million shares. Also, FTSE recently announced Mankind's inclusion in
03:56 their set of December 15, which expect inflow of around 28 million.
04:02 Right. Varsha, thank you so much for joining in and taking us through those details. So,
04:06 specifically when it comes to flows on account or being added in the MSCI Index will likely lead to
04:14 this counter moving even higher and perhaps making even newer highs. But from there on,
04:19 we should focus to GNK Bank, which has also surged in trade today after it launched a QIP
04:25 of around 750 Crores with a floor price of around 112.6 Rupees per share. And for that,
04:32 we have my colleague Vishwanath Nair, who's also joining us. Vishwanath, what can you tell us?
04:37 So, there is a QIP that has been announced at about 112.6 Rupees. That's a floor price for this
04:45 QIP. That's about a 20% discount to the current market price. The stock is, of course, up about
04:51 6-7 odd percent. Remember that just about two weeks ago, there was a news item that came out
04:59 that the Enforcement Directorate had conducted raids on GNK Bank with regard to 250 Crore worth
05:05 of money laundering case. Of course, these problems seem to have gone away for GNK Bank because there
05:12 has been a turnaround story at the bank itself. What we do know from the Q2 results that GNK Bank
05:18 announced, the deposits are up about 9% of 1.2 or 1.3 lakh Crore. You've got advances at about
05:24 92,000 Crore at up 18 odd percent. Accordingly, the gross NPA and net NPA numbers have also come
05:31 down significantly. The provision coverage ratio at the bank is about 99% and that's considered to
05:36 be one of the highest in the industry. Similarly, on the CASA front, on the current account savings
05:40 account front, the bank's current account savings account deposit ratio is significantly higher
05:45 than most other banks in the ecosystem. So, all in all, there is a turnaround story. The bank has
05:49 also guided that it will report a 20% loan growth for the years to come. For FY24 specifically,
05:56 this financial year, they're expecting about a 15% loan growth. So, that's expected to go up further
06:01 in the years that follow. So, taking into account all of these things, the system seems to be
06:07 rewarding the GNK Bank stock and that's what we're seeing in today's move.
06:13 Right. Vishwanath, thank you so much for getting us those updates on GNK Bank. And on that note,
06:19 it's time to slip into a short break. But on the other side, we get you a lot more.
06:23 Stay tuned to NDTV Profit.
06:25 [Music]
06:35 [Music]
06:45 [Music]
06:55 [Music]
07:05 [Music]
07:15 [Music]
07:25 [Music]
07:35 [Music]
07:45 [Music]
07:55 [Music]
08:05 [Music]
08:15 [Music]
08:25 [Music]
08:35 [Music]
08:45 [Music]
08:55 [Music]
09:05 [Music]
09:13 Welcome back to Last Trace. Let's now look at BLS International, which has hit a new 52-week high
09:19 and is over 7% in trade today. We now have Mahima, who's joining us to give us details of the stock performance.
09:26 Mahima, good afternoon. What can you tell us about the volumes today, as well as how have things panned out for this one?
09:35 Right. So, as you rightly said, the stock has hit its 52-week high today and is up over 7%.
09:40 And if you see, the stock hit its 52-week low on 29th of March at 149.65%, and the stock has recovered approximately 12% since then.
09:51 And if you talk about the overall growth of stock since past 52 weeks, the stock has grown over 69%.
09:58 Moreover, the stock today is trading at 5.8 times its 30-day average in terms of volumes.
10:04 Right. So, Mahima, I believe that it's received another order. Can you give us more details on that?
10:11 And how has the company done with respect to its revenues and perhaps its margins?
10:16 Right. So, recently, yesterday, the company announced that it has won a contract with the High Commission of India in Canada.
10:25 Well, if you see, BSL is a global leader in outsourcing services of governments and diplomatic missions.
10:34 The contract is basically for passport and visa services.
10:38 And this will operate in High Commission of India in Ottawa and the Consulate General India in Toronto and Vancouver.
10:45 And if you see, recently, in the past one week, it has also received a contract from UIDAI to conduct a quality data survey for the Aadhaar card numbers.
10:56 If you talk about BLS, the company has around 50,000 centers across the globe.
11:01 And till date, it has processed over 220 million applications.
11:08 And if we see the numbers for H1 FY24, the numbers have been brilliant.
11:13 The revenue grew by 26% and EBITDA margin, if you see, has grown by approximately 7%.
11:19 And if you see, the balance sheet is pretty strong and completely debt-free.
11:23 So, yeah, this is definitely good signs for BLS.
11:26 Absolutely. I totally agree with you. Those are staggering growth numbers coming in.
11:30 Mahima, thank you so much for getting us those updates as far as BLS is concerned.
11:34 But from there on, we move on to JTEC India, where the stock has also surged.
11:39 It's not making a new life high, but it seems it's going to potentially break out of a zone it has been trading within for a very long time.
11:50 But before I say anything further, let's get in my colleague, Hemansh, who's going to join us to tell us a little more about the updates in terms of volume profile, as well as a little more in terms of what the company does.
12:03 Hemansh.
12:04 Hey, thanks, Agam. So just to give some color, because JTEC is a stock that has now come into the spotlight after quite some time here.
12:12 It's an automotive parts manufacturer, mainly supplying to Maruti Suzuki, which accounts for 70% of its sales.
12:19 Being Maruti Suzuki is a co-promoter of the company by holding five and a half odd percent stake.
12:25 Now, the stock is trending towards its trading currently close to its intraday high, and it sold nearly 8% early trade today.
12:34 And the volumes as well are up 12 times their 30 day averages.
12:38 Now, this comes on the back of an order win from JTEC Brazil for 183 odd crores.
12:44 Now, this JTEC Brazil is a related party. It's part of the overall group company that's based out of Japan.
12:52 And it's for the supply of loose child parts, which refers to smaller automotive components.
12:57 You have parent parts and child parts. So it's for smaller automotive components here.
13:02 And now, just to give you some more color here, the company in Q2 reported a revenue of 584 crores, which is the best top line number that they have seen in over their history.
13:15 And the midterm margins were trending at 10.3% levels.
13:18 So it has seen a bit of recovery coming in from the past three, four quarters, where their numbers were in single digits in terms of midterm margins.
13:27 And in terms of stock performance, the stock hasn't moved too much really in the past six months.
13:33 It has inched up about two and a half percent. And year to date, however, the stock still is trading in the red about five and a half percent down year to date.
13:42 All right. Well, we'll be watching out for this one.
13:44 Hemansh, thank you so much for joining us and taking us through those details with respect to JTEX India.
13:50 And from there on, we move on to perhaps one of the bigger movers through the course of the year, and that's Safari Industries, which is also in focus, even as it trades X bonus today.
14:01 And Anushi now joins us to give us an idea about the volumes profile at the moment. Anushi.
14:08 Hi, Agam. So as the Safari Industries is in focus today after it trades X bonus today.
14:14 So what has happened again, just a little color on the bonus, it is in the one is to one proportion.
14:19 Now, what has happened is that after this stock has gained about 10 percent after being about 47 percent down in the last five trading sessions.
14:28 But if we keep that aside, if you look at the year to date performance, the stock has awarded its investors about 28 percent returns.
14:36 But more focus should be drawn to the Newama's management meet update, wherein they have showed the trajectory of the company post 2012 after the entry of Mr. Sudeer Jatia, who is the ex-MD of VIP Industries.
14:49 So post his entry, the brand has been positioned as a mass market brand.
14:54 And the organized market share of this brand has increased about 22 percent compared to 9 percent through a higher focus on its in-house manufacturing and hard luggage share mix.
15:06 So now about the key drivers that we should be focusing on, as emphasized by the note, is the planned QIP of rupees 500 crores for expanding its capacities and its foray in the premium segment via Urban Jungle.
15:20 Right Anushi, I guess it's natural for us to compare it with VIP Industries, its closest peer in the listed space.
15:27 Can you tell us a little more about the comparison in this case?
15:31 Right. So if you had to compare it with VIP, I will give the H1 FI24 performance overview.
15:38 So if you look at the revenue growth, VIP had reported about 7 percent growth in the fiscal compared to Safari's 31 percent growth.
15:47 Coming to the margin side, so VIP had showed about 11 percent return, which is down about 440 basis points compared to Safari's 18 percent margins, which are again up about 410 bps.
16:02 Now on to the final part, which is the valuations. VIP is trading at a 57 PE multiple, whereas Safari is trading at 82 times of its PE multiple.
16:12 So that's the whole scenario on the valuations and the growth story of the company.
16:16 Well, the picture is certainly very clear. Much better revenue growth, much higher margins as compared to VIP, but that's also the reason why its valuations are at a premium to those of VIP.
16:29 Anushi, thank you so much for joining in and taking us through those details.
16:33 And on that note, we slip into another short break, but lots more lined up. Stay tuned to NDTV Profit.
16:39 [Music]
16:48 [Music]
16:58 [Music]
17:08 [Music]
17:18 [Music]
17:28 [Music]
17:38 [Music]
17:48 [Music]
17:58 [Music]
18:08 [Music]
18:18 [Music]
18:28 [Music]
18:36 Welcome back. And it seems like the markets have slipped towards days lows.
18:40 The Nifty is now trending lower at the moment, and it is the same for the banking indices.
18:47 As you can see on your screen there, let's bring up the Bank Nifty as well. That is also at days low.
18:52 And of course, we have the Fint Nifty expiry. And while a lot of traders earlier in the session were expecting it to remain range bound, that really hasn't played out so far.
19:02 And we have in fact seen a lower trending day as far as these three indices go.
19:08 And on that note, before we end this show, let's now put the spotlight on why renewable technologies in today's day, it has been up as much as 2.5%.
19:20 My colleague, Hiral Dharia, caught up with the management. This is what they had to say about the prospects of the company. Listen in.
19:28 Joining us on the show today is Mr. Dilip Panjwani, CFO at Bari Renewables, to discuss the growth strategy and plans from here on.
19:38 Dilip, good morning and welcome to the show.
19:41 Good morning and thank you for inviting us.
19:43 Always a pleasure to speak to you. Dilip, clearly if you see in terms of the segment that you are in,
19:49 in the next five years, we've been hearing that the installed capacity of solar as well as wind is expected to double.
19:57 Now, taking this into consideration, what is the expansion plan of WARI?
20:03 You know, right now, it's not installed capacity that's going to double. There's a government intent to make it to 500 gigawatt.
20:11 So the potential is immense. So we would not like to put a number, but it will definitely be the growth in multiples.
20:17 And the opportunity pie is just growing bigger by the day.
20:20 So tell me one thing. Currently, what's the installed capacity that we as a country have?
20:26 And what's the kind of market share that WARI commands?
20:29 So the installed capacity in solar space is 129 gigawatts. So let's say put it 130 gigawatt.
20:35 That's going to scale up to like another plus 280 gigawatt.
20:39 In terms of IPP, we have just got 40 megawatt. But in EPC, we are touching one gigawatt of order book that is yet to be unexecuted.
20:47 And the pipeline just grows.
20:49 Right. In fact, when you talk about the unexecuted order book as well, from what is pending right now,
20:55 how much do you think will be executioned in FY24? And what's the kind of revenue potential it will give you?
21:02 So we have executed in first half about 265 gigawatt and about 970 gigawatt is unexecuted order book.
21:12 We expect this to take about 9 to 12 months. We take about 1 to 1.2 CR per megawatt of revenues.
21:19 So you can just extrapolate the numbers and get the number. However, this excludes the module capacities.
21:26 Wherever module capacities are there, which is a small portion of our order book, that will add up to the numbers.
21:33 OK. So between government and private, what does the order breakup look like or revenue contribution look like?
21:41 And going ahead as well, how do you see that trajectory in terms of dependency looking like?
21:47 So right now, our order book, which 970 megawatt we speak unexecuted, is majority private.
21:53 And the government is under 10% portion. 90-10 is the split that you can roughly take about.
21:58 It's not a question of dependency, it's a question of opportunity. Government definitely is the biggest spender.
22:03 So we have to remain in that space and we will be in that space.
22:07 But equally, the opportunity on CNI and utility scale is growing immensely over the years.
22:13 And we will definitely be a dominant player in that in the EPC segment.
22:17 So from a margin perspective, how is it different for government orders versus private orders?
22:24 Definitely margin profile is better in private orders because government is a very competitive space.
22:29 But given that government gives volumes and that makes up for the margin shortfall that ever comes in government space.
22:36 So you have to remain in both because your supply chain can support both.
22:40 So would it be right to say that government is more of a volume play versus private, which is more of a margin play?
22:47 Yes, you can probably take it. Government is a volume play.
22:52 Dilip, apart from that, from a growth strategy perspective, after the second quarter numbers as well,
22:57 you've categorically mentioned that growth in terms of EPC segment is what the company is looking at.
23:03 O&M markers is what you're looking to expand as well. And you do have better opportunities in green hydrogen.
23:11 Now, if you have to look at these three segments of business, what is that revenue contribution?
23:17 And how do you see these panning out from here on?
23:20 So, you know, apart from these three segments, EPC, O&M and green hydrogen, which you mentioned,
23:27 we have IPP segment as well, and which is 40 megawatt.
23:30 Both are expected to grow. EPC and IPP, both segments are expected to grow significantly over time.
23:36 Of course, IPP has a bigger gestation period. So revenue profiling will mature a little slowly out there,
23:43 but it's an annuity play. But EPC, which is a question that you asked right now,
23:47 is going to be a quicker one and a lot bigger one going forward.
23:50 Because government is looking at installed capacities of 70 gigawatts upwards per annum.
23:56 So even if you get a one gigawatt by every year, it's quite significant play.
24:01 So EPC currently also is almost 97% of your revenues, right?
24:05 Yes.
24:06 So will that continue to be or do you think it'll come down slightly taking the other stuff?
24:12 In a shorter period, EPC will continue to be dominant because IPP takes time to mature.
24:17 But IPP as an asset base is always going to be larger. EPC doesn't have an asset base.
24:22 Got it. Now, from a margin perspective as well, if you have to look at the second quarter,
24:27 we did see a good jump on a year on your basis. I think it was 10.5%.
24:31 A jump to almost a little over 18% is what we saw.
24:34 So what was the reason for this kind of a jump in margins?
24:37 And will you be able to maintain this trajectory going ahead?
24:41 You know, going ahead is difficult to maintain, but we have been always saying that we will be in 15% to 20% margin play.
24:49 But the reason is pretty simple. Last entire year we did 290 megawatts.
24:53 This first half itself we did 265 megawatts.
24:56 So volume play is definitely coming in and operating leverages, you know,
25:00 which help you sustain those margins definitely comes with volumes.
25:04 So taking the trajectory that you have from an execution pipeline for the second half,
25:09 would it be right to say that, you know, a revenue trajectory of around, say,
25:14 14 to 1500 odd crores for FY24 is going to be achievable?
25:19 See, I would not like to put that number, but 14 to 1500 crores is far a stress
25:24 because we have completed 280 crores in the first half.
25:27 We are growing at a rate of between 30 to 40%.
25:31 So I would rather put that number with the growth in between 800 to 900.
25:36 Okay, so 800 to 900 odd crores is what we are targeting.
25:39 And from an expansion perspective as well, any CAPEX plans that we have?
25:45 On the IPP front, yes, but we are not putting a number because we are just 40 megawatt.
25:50 Even if you become 400 megawatt, it is 10x.
25:53 So, you know, instead of putting numbers, we would rather want to focus on putting
25:57 big pipeline of IPP play because it's an un-UT play with good ROEs.
26:02 So how much would you need to spend to grow at that level?
26:06 You need to put about 4 crores, under 4 crores per megawatt for IPP play.
26:11 So if you put 100 megawatt, you need 400 crores. It's a simple math.
26:16 So, and will this mean that even if you're going with the same calculation
26:22 and the same math right now, if you have to spend that amount,
26:27 by when do you see that actually contributing to revenues in basis these spends?
26:33 And overall, from a business perspective as well, how margin accretive does it become?
26:38 So from a margin accretive, it's very quicker, it's fast.
26:43 But from a timing perspective, it could take about 12 to 18 months
26:48 for something reasonable to come up.
26:50 And where do you, how do you plan to fund this CAPEX?
26:53 Will it be internal accruals or will it be a combination of internal accruals,
26:58 debt or anything on the equity side?
27:00 Any IPP play is a mix of 25 to 75 debt equity, somewhere around that.
27:05 So the 25 equity portion will definitely be internal accruals,
27:08 but if you require a larger pie, we'll look around.
27:11 Okay. And from a growth perspective, what's the milestone
27:15 that Varia as a company wants to achieve?
27:18 We will always like to remain as fast as growing company as we are, we have been.
27:23 In fact, we look at our two-year trajectory, you know, we are growing at 100% rate itself.
27:28 We would love to maintain that given the sector's inflection growth.
27:32 Okay. And from a government perspective, do you see any subsidies that could come at play
27:39 for the segment that could be one of the key tailwinds for a company like yours?
27:44 So in the retail segment, government is considering subsidies,
27:47 but more from an IPP utility scale perspective, government policies on open access
27:53 and land reforms, etc., they have been already in place.
27:57 That's why you are seeing this inflection growth because of stability
28:00 and government policies on that front.
28:02 Okay. So, and anywhere you stand to benefit out of it?
28:06 Oh, definitely, you know, with the ecosystem, you definitely go with the ecosystem.
28:10 More the orders on IPP, more the EPC contracts for us.
28:14 So definitely we go with the industry.
28:17 And between domestic as well as the international markets,
28:20 right now I'm sure the concentration is on domestic, looking to expand in international markets.
28:26 So what's the strategy there?
28:28 See, right now our focus is on domestic because of the opportunity,
28:31 but we are seriously considering overseas penetration as well.
28:34 We have executed one order in Vietnam a while back,
28:37 and we will be relooking at international territories as the opportunities come up.
28:42 Okay. And very lastly, from an order book perspective, from a number,
28:47 I'm not saying from a megawatt perspective, but in terms of the value,
28:50 where are you and what's your trajectory in terms of closure of FI24?
28:55 FI24, as I said, you know, the whole year looks between 800 to 900 for us, given that.
29:01 But from a whole order book perspective, we are between 1300 to 1500 crores, somewhere between that.
29:07 [MUSIC]