ICICI Securities' Probal Sen highlights factors to watch for RIL after a muted quarter. Alex and Hiral also take us through other key earnings and stocks to watch, going into trade.
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00:00 Good morning and happy Monday to you. You're watching Trade Talk on BQ Prime. My name is
00:05 Alex Mathew and with me is Heeral Dadia. Good morning Heeral.
00:08 Good morning Alex.
00:09 Well, it's bright and early on Monday morning.
00:13 Not for the markets though probably.
00:15 Not for the markets. We're just half an hour away from trade. And as things stand, it looks
00:19 like it's going to be a negative start. But then let's put that in context. You had quite
00:23 the down day on Friday. It was a bit of a bruiser for the Indian equity markets. And
00:28 that is after we came just shy of that 20,000 mark. We ended up losing quite a bit of ground
00:34 in trade on Friday. It was the breaking of a six-day gaining streak, Heeral. And it was
00:41 the IT pack as a whole that proved to be the biggest weight for the Nifty going down 4%
00:48 loss.
00:49 Absolutely. And this was mainly on the back of enforcers, right? The earnings disappointment
00:53 specifically from a guidance perspective is something which brought the entire IT pack
00:58 down. And this is not only the large cap companies, even the mid cap companies lower. Today, it's
01:03 probably Reliance Industries which is going to place false port as well. Because if you
01:08 talk about the GDR, 6% to 6.5% kind of cuts is what we saw in evening session in terms
01:13 of Friday. Now, that could be mirrored in our trade as well. Clearly, 191 points is
01:19 what Nifty has paid from life highs of 19,991 in trade overall. Apart from that, now, this
01:27 week, what is going to be crucial is Alex, the US Fed as well as the ECB policy meeting.
01:33 And on the back of earnings, a lot of stock specific action is what we are going to watch
01:37 out for. If you talk about the technical perspective, if you're going to continue to stay below
01:42 that 19,825 mark, the weak sentiment is expected to continue and then we could slip to levels
01:49 of 19,600 to 19,550 kind of a zone. However, if you're able to stay above those 19,825
01:55 levels, then there is a possibility of an uptrend to continue in terms of markets and
02:00 19,900 to 19,950 is something that could be retested. It's interesting how now everyone
02:05 is again stopped talking about 20,000 as the key resistance and we've come back to those
02:11 19,900 to 19,950 levels. If you see in terms of Bank Nifty as well, around 45,800 to 45,500
02:19 is the key level to watch out for. And index could move to around 46,500 to 46,900 if there
02:25 is that upsurge that continues. And now, the participation with Bank Nifty is going to
02:29 be absolutely crucial because all bets were on IT and Bank Nifty to help the index scale
02:35 above those 25,000 levels and sustain above that. If you talk about the F&O side of it
02:40 as well, 19,800 on the put side is seeing the highest OI addition, whereas on the call
02:46 side it's still 19,900. So, that shift has already happened, which was earlier at those
02:52 20,000 levels. So, it's going to be an interesting day of trade. How far are we in terms of number
02:56 of days from 20,000 is what we need to wait and watch whether this expiry we will be able
03:01 to take it out or not.
03:03 And speaking of Reliance Industries, which as you pointed out at the start is the focus
03:07 today, by the way, on Friday as well, it lost about 2.5%. So, it was quite a bit of a drag
03:13 on Friday as well. Today as well, that could be the case. It could be mitigated somewhat
03:18 by the likes of ICICI Bank, which posted quite a good…
03:21 Correct. But you know what has happened is if you talk about Reliance Industries, the
03:24 month of July itself, it's seen a good rally, right? Now, due to that rally, will we see
03:30 a higher amount of profit booking now is what we need to wait and watch.
03:33 In fact, let's look at the numbers more closely because that ultimately is what's going to
03:37 determine the mood for Reliance Industries today. Sajid is joining in. The headline seems
03:43 to be that it's a miss, Sajid, on the bottom line front and that's primarily on account
03:48 of O2C is what I have read. What can you tell us?
03:51 Good morning, Alex. Good morning. You know, it's pretty much a miss in terms of numbers
03:57 whether on a consolidated basis and O2, oil to chemical is one of the reasons why because
04:03 they had a very muted quarter in Q1. If you look at EBITDA, consolidated EBITDA, it was
04:11 a miss, especially due to O2C weaknesses. There was lower deltas and that led to a bad
04:18 means lower EBITDA for the O2C business. But this was partly offset by the consumer businesses
04:25 like retail and Jio, which is the telecom business, which is the consolidated profit
04:31 was again lower of 17%. This is profit attributed to owners. And this is only on account of
04:39 higher finance cost as well as, you know, deprecation, which was booked in the quarter.
04:46 Jio revenues and EBITDA was up 3%, which was a very in line kind of numbers which came
04:52 in there. Subscriber addition was nearly 2% odd. And ARPUs were in line with the AI at
04:58 180.5. The street was looking at 181 or so. There is still some consolidation happening.
05:04 So that impacted Jio there. Retail was good performance coming in. You know, you had revenue
05:09 and EBITDA from all segments, especially grocery and fashion and the rising quantum of the
05:18 digital or e-commerce business, which is also contributing to the retail there. But the
05:25 street seems to be divided on the growth of retail because they've been able to increase
05:29 the footprint by nearly 55% in the last one year on a year to year basis to 70.6%. And
05:36 that's not coming, you know, is that that growth in Q1 is not coming straight to that
05:42 increase in footprint, though it is a good growth they have come out with. So consensus
05:48 target is around 2716. As for Bloomberg, current stock is hovering around 2500 odd and is going
05:56 to be under pressure today. Absolutely. Pressure is going to continue
05:59 and what's the kind of pressure it has on Nifty 50 is going to be interesting to watch
06:04 out for. Thank you, Sajid, for getting us the details. So that's what Reliance Industries.
06:07 In fact, we will have Prabhalsen as well, who will be joining us at the lag end of the
06:11 show to give us a perspective in terms of what it would mean from a valuation perspective
06:16 as well as, you know, from a target perspective on a Reliance Industries and what you should
06:20 be doing with the stock from here on. But moving on to banking counters that are in
06:25 focus as well from the large cap space. You have, you know, Vishy joining us to get us
06:31 more Vishy. You have ICICI Bank as well as Kotak that has reported numbers. Firstly,
06:36 let's start with the ICICI Bank, because clearly, firstly, it's already hit a four digit number
06:42 in terms of last week, and that was a good milestone for the bank to cross. From an earnings
06:47 perspective, you know, how has the quarter been?
06:50 Yeah, as far as ICICI Bank is concerned, of course, there's been a significant profit
06:56 growth, about 40% increase in the net profit number for the first quarter on a year on
07:01 a year basis. It has beaten all market estimates as far as I know. Having said that, this is
07:09 largely because of an improvement on the net interest income side. So that also about 38%
07:14 for the bank, which has helped ICICI Bank's overall profitability, advance the deposit
07:20 rate, both at about 18% that ICICI. Only two things which were slightly disappointing is
07:26 one on the asset quality front, where the additional NPAs that were added during the
07:32 quarter, about 1800 odd crore worth of slippages, net slippages added, you know, after removing
07:38 any kinds of recoveries and upgrades. That was a slight miss. The ICICI Bank management
07:44 has been constantly pointing out that this happens in the first quarter because account
07:50 for any angry NPAs that come in. And angry NPAs have been an issue for private banks
07:55 for a very long time. This specifically came from, I mean, the bulk of these NPAs came
08:01 from the Kisan credit card portfolio. After the asset quality, the other disappointing
08:05 bit was on the net interest margin side. Of course, ICICI Bank has previously, you know,
08:13 given this guidance that NIMs are going to come down because you had a significant uptick
08:19 in NIM of 4.9% as of March 2023. That was largely because, you know, the interest rate
08:26 differential between lending rates and deposit rates were not moving in tandem. So now that
08:30 deposits are getting repriced, the NIM has dropped over 4.78%. The bank believes that
08:36 there's going to be further compression, but things will normalize at close to about four
08:40 and a half for this financial year.
08:43 Right. Okay. So that's the view, Vishy, on ICICI Bank. Kotak Mahindra Bank was the other
08:50 one and at least the headline looks really, really pretty, right? 66.6% growth in net
08:56 profit on the back of improvement in net interest income and also non-fund income. It's looking
09:02 good. What can you tell us about the fine print?
09:04 Yeah. So as far as Kotak Mahindra Bank goes, you're right. The profitability numbers look
09:09 pretty good. Even if on the advance and deposit side, it's growing at about 19% and 22% advances
09:17 and deposits respectively. You know, deposits have picked up pace at Kotak Mahindra Bank
09:22 because of course, advances growth has been strong for the last few quarters. So they
09:26 need to push up the deposit side now. The disappointing bit is of course, CASA is not
09:32 growing as fast. And this typically happens in a rising interest rate scenario where people
09:37 move their deposits from their CASA to the fixed deposit side. For Kotak Mahindra Bank,
09:42 the fixed deposits have grown about 48.5%. So that shows that that shift is happening
09:47 because people are booking higher interest rates. On the asset quality front, the bank
09:53 did see some slippages coming from the unsecured portfolio as well as its commercial vehicle
09:58 book. So that the bank believes is going to normalize going ahead. This was a slight
10:04 disappointment on the asset quality front. But overall, Kotak Mahindra Bank just like ICICI
10:10 looking pretty strong Alex. Thanks Vishy for getting us the details. In fact, both these
10:15 counters will be in focus. In fact, Kotak Mahindra Bank itself as a stock has been one of the
10:20 underperformers from Bank Nifty components. Now whether it starts contributing to Bank Nifty's
10:25 up move is what we need to wait and watch and whether the contribution starts supporting Nifty
10:31 as well. But moving on a lot of other financial names that reported numbers as well over the
10:36 weekend. We have Himansh who's joining back, joining us to give us more Himansh. Good morning.
10:42 A lot of other financial institutions that have reported numbers, which ones are you tracking?
10:47 Right. So a bunch of them have reported their numbers. Starting with AU Bank reported a 44%
10:52 year on year growth in net earnings, which were largely in line and were aided by a healthy
10:57 growth in the net interest income, which grew by 28% year on year. Despite the seasonally soft
11:02 quarter and elevated interest rates, the net interest margin was impacted by 38 basis points
11:07 on a quarter on quarter basis. And the deposit cost and the drag from excess liquidity were the
11:13 key factors here. Casa mix moderated to 35% and the absolute and gross and net NPAs increased by
11:22 14% and 42% quarter on quarter. Coming on to then credit taxes Grameen, the net interest income was
11:28 up 65.4% when the net profit jumped up by 151.5% year on year. And this was backed by the 40%
11:37 growth in the gross loan portfolio, along with which grew to 21.8 thousand crores, along with
11:44 a borrower base increase across the 1800 branches. So deep, you know, rural penetration that this
11:52 MFI enjoys. And this coupled with the 98.7% collection efficient efficiency has largely
11:58 driven these results. Then coming on to paytm, their revenues were up 39% year on year. And the
12:03 prospects of the payment business also improved with a 69% year on year increase in the payment
12:08 margin, which is a composite of both your both payment processing margin as well as the subscription
12:13 revenue. There's also a marked improvement in the loan disbursements business which have grown by
12:18 167% year on year. This is largely driven by the merchant and personal loans, which while
12:25 postpaid loans remain the foundation on which the segment is built upon. RBL bank, which noted
12:33 a net profit growth of 43% year on year and standing at 288 crores. The bank noted a sequential decline
12:41 in the net interest margin of 4.84%, while the net NPAs have continued to remain stable at 1%.
12:46 Asset quality has also improved and the net NPAs stand at 3.1%. Lastly, with Yes Bank,
12:55 the net profit is up 10.3%. And the bank's, the analysts polled by Bloomberg estimated a 263 crore
13:03 net profit for the three months, which is beaten by the net profit reported by of 342 crores.
13:09 The lastly, while the bank's total deposits have registered a growth of 13.5% year on year,
13:16 its CASA ratio, the share of mix between current account and savings account, compared to overall
13:21 deposits, that have declined by 29.4% year on year. So that's the summation of all the earnings
13:27 for the financial institutions. All right, Hemash, thanks so much for that. Now, Reliance Industries,
13:32 we mentioned at the start of the show, and we talked about the earnings fine print as well.
13:37 And we told you that we'd be getting Prabholt Singh from ICICI Securities to tell you a little
13:42 bit more about what he made of the numbers. Prabholt, joining in. Prabholt, good morning,
13:46 and thanks for joining us on BKeep Prime. We've already taken our viewers through the fine print.
13:51 The question is, what do you make of it? How did it stack up to your estimates? What we're looking
13:57 at is a miss, at least on the bottom line number. Yes, I think the, see, the bottom line number was
14:03 a little bit of a miss because I think most of us were building in tax rates of somewhere around 20%,
14:08 whereas they transitioned to the new tax rate of 25.2% almost completely this quarter. So frankly,
14:14 on the net earnings level, maybe that was one of the reasons. Operationally, as you were mentioning,
14:20 I think the numbers were broadly flat, or, you know, marginally below street estimates,
14:25 they were marginally below our estimates as well, you know, because of small misses in retail,
14:32 and a couple of other segments. But the bigger, you know, monitorable really is that what happens
14:37 to the OTC segment, which was obviously a little bit of a laggard in this quarter. And if we look
14:43 at the kind of guidance that has been given by the management, it does look that at least in the near
14:48 term, the prospects for margins do seem a little bit muted. It's a very strange situation right
14:55 now in the downstream petroleum segment, where all the data that is coming through from agencies
15:01 like IEA, or OPEC or anybody else you want to read will suggest that inventories are at, you know,
15:07 fairly low levels across OECD countries. You know, supply is not that much of a surplus. In fact,
15:14 it's moving into a tight environment, and demand is still set to go stronger. And yet none of that
15:19 sort of reflects to that extent in the pricing, which suggests that either there's a downside risk
15:25 to the estimates that everybody is making, or, you know, the demand estimates are probably a bit
15:31 overestimated at this point of time. So we will have to basically see as we go along. At this
15:37 point of time, I would say, if you look at the EBITDA that has been reported by the company,
15:41 and annualize it, you will see that it will fall short of street estimates by somewhere around
15:47 6 to 7%. So obviously, there's a little bit of demand recovery that needs to happen or earnings
15:54 recovery that needs to happen over H2 for Reliance. And we are very, we are hopeful that that is
15:59 something that's going to come through. But you know, there is a little bit of a downside risk
16:03 at this point of time. Right. Thanks, Prabha. In fact, good morning. What I want to ask you is
16:08 from here on, what are the key triggers we should be watching out for for Reliance Industries?
16:14 Because clearly, there are two aspects to look at. One is the monetization cycle of Reliance
16:19 Industries. And the second part is the investment cycle. And both of them are now running in parallel
16:25 for the company. So taking both these aspects into consideration, what would you advise investors to
16:31 watch out for? I think three things that probably will be of interest. Financial services now is
16:37 no longer part of Reliance. So that is done and dusted. Shareholders have got the shares of
16:42 financial services. So what happens to that entity is no longer relevant. For Reliance, I think what
16:48 happens in the new energy businesses, both in terms of investment milestones that are disclosed
16:53 by the company as we go along plus any other milestones that are hit from a manufacturing or
16:59 a cost standpoint, I think that will be one key trigger. As I mentioned, any signs of clear
17:04 recovery in the OTC margin cycle, both on the refining as well as the petrochemical front,
17:09 I think that will be another key trigger. Third, you mentioned the investment versus monetization
17:14 cycle. The fact is that investments or CAPEX for the company at around 38, 39,000 crore is still
17:21 higher and well above, I think what people had built in when their cycle had ended in
17:28 geo-mobility and downstream petroleum. So with this kind of a CAPEX run rate, our sense is that
17:34 FCA fields and return ratios will probably continue to be a bit muted, at least over the next two
17:40 years. So it's important perhaps to understand what is the five-year roadmap for monetization
17:45 of all of the investments that are being done, both in 5G, new energy, as well as the new round
17:51 of petrochemical investments that probably also will start from this year. And that was announced
17:55 in the last AGM by Mr. Ambani. So and of course, the most immediate trigger would be the upcoming
18:02 AGM speech, because that will give us some color on what the company plans to do strategically
18:08 over the next year or so, both in the new energy as well as in the other segments.
18:12 So those are the few factors that one should keep an eye out on.
18:16 Okay, final call, quick one then, Prabal, how's call on Reliance Industries and what is the
18:22 target? And do you think there's likely to be quite a bit of pressure, at least in the near term?
18:27 And would you pick up on dips then? I would probably, you know, we have an ad rating on
18:33 the stock with a fair price of 2670 a share, which obviously translates to a fairly limited upside
18:38 from these levels. Yes, depending on what the extent of the downside is, anywhere around,
18:43 you know, 23-2400 bucks, if the stock goes down to that level, we would definitely be interested.
18:49 But at these levels, we would say, you know, the risk reward is fairly balanced for the story.
18:54 Right. Thank you, Prabal, so much for joining us on the show and sharing the views as well. So
19:00 that's with regards to Reliance Industries, how it opens in trade is going to be interesting to
19:04 watch out for, but a whole host of other earnings and, you know, smaller companies that are in
19:09 focus in today's session as well. Mika joins us with more. Mika, which are the companies you've
19:13 picked up on the back of earnings? Okay, so first, the CMS Infosystems, which recorded a 13% growth
19:18 in revenue and a 22% growth in PAT. The cash logistics segment went up 12% in terms of revenue
19:24 and managed services and technology solutions segment grew 17% year on year. Next, we have
19:29 Tata Rail Systems, whose revenue grew 110.89% at 911 crores, and the net profit of the company
19:38 stood at 68 crores this year versus the loss of 0.06 crores last year. The order book of the
19:44 company stood at 27,890 crores with 51% in freight rolling orders and 49% in passenger rolling. Next,
19:51 we have DLF, which recorded a marginal growth of 0.32% in revenue and 1% in EBITDA this quarter.
19:59 However, their PAT grew 12%. Their new sales booking for the quarter stood at 2040 crores.
20:05 The company also expects strong demand from its office developments and has received around 82%
20:10 of pre-leasing across its two new developments. Next, we have Indrapastha Gas, which had reported
20:15 6.5% revenue growth at 3,761.8 crores. EBITDA margins decreased to 17.07% this quarter versus
20:24 last year's 17.48% and PAT was up 8.4%. And lastly, we have Ramkrishna Forging,
20:30 which has three different updates. The first is the quarterly updates. Revenue was up 28%
20:34 year on year and PAT was up 53% year on year at 785.3 crores. The company has also increased its
20:41 capacity to 2,10,990 tons and will commission another 32,500-ton addition by September 2023.
20:50 It has also announced a strategic acquisition of Multitech Auto Pvt Ltd and its wholly-owned
20:56 subsidiary Mal Metallics Pvt Ltd along with Mal Auto Products Pvt Ltd. These acquisitions are
21:03 aimed at expanding their current product line and increasing its presence in mainly passenger
21:08 vehicles like commercial vehicles and heavy commercial vehicles as well. The company expects
21:13 around a 500 to 600 crore turnover in the next two years via these acquisitions.
21:17 All right. Thanks so much for that, Meka. Out of that entire list, I think that RK Forging is one
21:22 to watch as well as Tata Girl Wagons, considering that they have posted a PAT compared with the loss
21:27 of last year. And also that entire real stock or the real basket, if you can call it that,
21:34 has been in focus over the last couple of months. Absolutely. And both these counters are building
21:38 a factory together as well in terms of manufacturing. So both of them are going
21:42 to go pretty much hand in hand. All right. There's more stocks that
21:45 you need to watch out for. And Saloni is joining in to tell you all about that. Saloni,
21:50 morning. What are you picking up? Morning. So there are four other stocks that also
21:54 reported their quarter 1 earnings. So first, we've got Sai & DLM. So the total revenue from
21:59 operations of the company was up 28% to Rs. 217.15 crore in the first quarter. The EBITDA was also
22:08 up 73%. And the PAT of the company was down 15% to Rs. 5.36 crore. The other income fell by Rs. 7.5
22:17 crore to Rs. 0.91 crore, driven by the drop in the net forex gains. Then coming to RTE Drugs next.
22:27 So the total revenue from operations was up 6.3%. And the EBITDA was up 25.6%. The PAT was also up
22:35 27.9% to Rs. 48 crores. The increase in sales was led by volume growth in APIs, which contributed
22:43 to 79% of the total revenue from operations. In other news, the company has also approved the
22:49 buyback of 6.65 lakh shares, which represents 0.72% of the total at Rs. 900 per share.
22:57 Next, we've got Tejas Networks. So the total revenue from operations was up 49.4% to Rs.
23:04 187.89 crore. There was an EBITDA loss of Rs. 26.79 crore. And the company saw a total net
23:13 loss of Rs. 26.29 crore. Lastly, we've got Dodla Dairy. So the total revenue from operations was
23:20 up 14.8%, which was led by an increase in milk volumes and healthy value-added product sales.
23:28 The EBITDA margin was up 33.9%. And the PAT was up 40.3% to Rs. 35 crores. The improvement in the
23:36 margin was led by low material prices and the decline in other expenses.
23:40 It's adding a lot to watch out for. Thank you, Saloni, for getting us all the details. But moving
23:45 on, another counter which has reported numbers is Vedanta. It's interesting to see how the numbers
23:52 have panned out because with this, another aspect that everyone's talking about, Alex, is in terms of
23:57 the stress that could come in terms of the balance sheet, because what's happening is to
24:01 unburden or reduce the burden on the parent company, which is Vedanta PLC, the kind of
24:08 dividend payouts that Vedanta is coming up with. That's what the banks and financial institutions
24:13 are worried about, right? How much pressure could it put on the balance sheet? So that's one aspect
24:18 we need to consider. But Rishi is standing by with more details in terms of how the numbers have been.
24:22 Good morning, Rishi. And what does Vedanta tell you? Good morning. So as you said, that's one
24:26 aspect. Even in the first quarter, it paid out about 6,800 crores worth of dividends, and that
24:31 came out about 18.5 rupees per share. And this was, again, as they also mentioned, it was to reduce
24:36 the debt burden of its parent holding company, that is Vedanta Resources. Now, coming to its
24:40 results, its revenue was down 12.6 percent, and it also missed estimates. And this was due to
24:45 lower commodity prices as well as lower volumes that were posted by the company. And this was
24:50 partially offset by higher premiums as well as a favorable exchange rate movement.
24:54 Now, the net profit was also down 40 percent at 2,640 crores. And this was led by higher finance
25:01 costs apart from the already lower sales that was there. The overall EBITDA as well, it fell by 37
25:07 percent. And this was led by EBITDA declines across all of the segments year on year, except for its
25:12 power segment. It is also important to look at its dividend payments that I just said that is
25:17 stressing its balance sheet. Now, the company is also planning to set up a semiconductor and
25:22 display glass production facility at Dholera in Gujarat. Now, once it's operationalized, Vedanta
25:27 has said that it would augment its product portfolio from being a metals and mining company
25:32 to as well diversifying more to a technology aspect as well. Okay. So that's, and we've spoken
25:38 about that over the last couple of weeks as well. But Tata Steel is going to be posting its results.
25:44 What can you tell us about the preview? So it's not going to be a really good
25:48 quarter for Tata Steel. Its profits, it's actually expected to post a loss of about 100 odd crores
25:54 from a profit of over 7,000 crores that was there in the last year. Now, revenues also expected to
26:00 drop by over 11 percent in this quarter. And this will primarily be driven by lower steel prices,
26:05 despite an 8 percent growth in its consolidated steel volumes that it said in its quarterly
26:10 update. Now, profits may also get some support from lower cost, but the majority of the lower
26:15 cost benefit is expected to come in only in the next quarter. So that impact will also be minimal.
26:20 Now, the demand pick up in the Euro 79 has continued to be weaker. So the underperformance
26:26 in this segment will likely impact the company's EBITDA. But however, the company is also planning
26:31 to increase its focus in the long steel segment and Tata Steel's long product segment also posted
26:38 its result recently and its losses actually reduced. So it looks like the Indian operation
26:44 segment will probably offset the losses that is there in the Europe segment.
26:48 Interesting. So that's going to be the metal pack continues to remain in focus as well. Thank you,
26:53 Rishi, for getting us all the details. But moving on, you have the pharma pack that will be in focus
26:59 in today's session. We've already spoken about Aarti drugs on the back of earnings. But apart
27:03 from that, you know how you have names like Lupin, Dr. Reddy's that will be in focus.
27:08 Monal joins us with more. Monal, what are the key pharma stocks that you will be tracking today?
27:13 Because it seems there is some bit of action there. Yes, yes. So US FDA has again, so it's
27:20 been going on like the inspections have been going on. So now two of the companies have seen inspections
27:25 and certain observations. So one is Biocon. Now Biocon had two inspections, good manufacturing
27:31 inspections, regular routine inspections that have taken place in its Malaysia
27:34 insulin manufacturing facility. Now it's come up with eight observations. So six of them,
27:41 the company said, related to drug substance, drug product units and drug quality control laboratories
27:46 and two related to delivery devices unit. Now they said that the observations are procedural. There
27:53 is no data integrity issue, so to say. And there's no systemic noncompliance. But of course, now the
27:58 company is going in for resolution and we shall see what is the outcome. The second is Aurobindo.
28:06 It's a Bachupalli village facility, which is in Telangana, was also inspected. It's a formulation
28:11 manufacturing facility and that was inspected between 14 and 21st July. Now three observations
28:17 have been made and the company's disclosed that they're procedural in nature. Of course, the
28:20 outcome would be more clearer once we get to the form three, the form 483 that has been issued to
28:25 the company or we get some more insight. Let's wait on that. Then there's Lupin, which has
28:32 received tentative approval for an AIDS relief drug, which was approved under the president's
28:37 emergency plan. Now, this tentative approval is the second one, according to Antique Broking,
28:43 which is after Loris Labs. So maybe a slight negative for Loris because it's not the sole
28:48 player. Also, they're expecting that more generics are to receive approval, maybe from Myelin,
28:53 Hetro, Aurobindo, all as per Antique Broking. And they're saying that because they're going
28:57 to be so many players in the market, we need to gauge the materiality. The existing AIDS relief
29:03 drug regimen, which is in focus, is around 600 million US dollars. But with generics coming
29:08 into the picture, we need to see what sort of market share and what are the playouts and what
29:12 sort of discounting do we see on the price of the drug as well. It's going to be manufactured
29:19 at the Nagpur facility. Okay, so quite a few updates in the pharma space. Aarti drugs, we
29:24 already spoke about. But interestingly, and thanks so much, Monal, for that. Interestingly, the
29:29 buyback price that was announced, excuse me, 900 rupees, which is a considerable upside
29:36 on the closing on Friday. So we'll have to see how that pans out. Of course, the amount
29:41 is not a very large amount, but we'll have to see how that stock reacts in trade. Quite a few other
29:48 stocks that you want to watch out for. And Varsha is joining in to tell you more about what she's
29:52 picked up. Morning, Varsha. What do you have for us? So there are a bunch of companies that one
29:57 needs to watch out. The first one is SJVN. So the company through its wholly owned subsidiary,
30:03 SJVN Green Energy Limited has received a letter of intent from Punjab State Power Corporation
30:09 Limited for procurement of 1200 megawatt solar power. Now, the solar projects shall be developed
30:15 on build, own and operate basis. The cost of construction for development of these 1200
30:22 megawatt project is around almost 7000 crores. And the next company that we have is Adani Enterprises.
30:29 So global private equity fund from Bain Capital has signed an agreement to buy 90% stake in
30:36 Adani Capital Limited and Adani Housing Limited. The transaction involves Bain Capital investing
30:42 almost 984 crores worth primary capital into the company. Gaurav Gupta, who currently owns 10%
30:49 stake and act as a managing director and CEO of the company of Adani Capital will retain his stake
30:54 and role. The next company that we have is NHPC. The Arunachal Pradesh government has approved the
31:00 allotment of 2000 megawatt Subansiri Upper Hydro project and 1800 megawatt Kamala project to the
31:07 company. The next company that we have is Power Finance Corporation Limited, which executed various
31:13 MOU of more than almost 2.37 lakh crores with 20 companies, both in public and private sector.
31:19 And the last company that we have is IRB Infrastructure Developer, which is going to
31:24 raise up to 2860 crores via right issue. Right. Thanks, Varsha for getting us the details. And
31:30 from all of this, it's SJVN, which is going to be a key focus on the back of the, you know,
31:35 MOUs as well as auto wins. But clearly, markets are indicating pressure, Alex, if you see the
31:40 pre-open in terms of the Sensex as well, a 500 points cut is what we are already seeing. So,
31:46 how it looks like and where it settles in is something we need to wait and watch and how far
31:50 the journey to 20,000 becomes from here on. That's all that we have on this session. Thanks
31:54 for watching. And lots more lined up during the day. Please stay tuned to BQ Prime.
32:07 Thanks.
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