Category: Stocks

Kaynes Tech surges 14% to near record high; stock up 5x from IPO price

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Shares of Kaynes Technology India Ltd. zoomed 14% in Friday’s trade after the company’s consolidated net profit soared 97% year-on-year to ₹81 crore, compared to ₹41 crore posted in the same period last year.

The company’s revenue from operations jumped 75% on-year to ₹637 crore in the quarter under review, driven by robust demand across all verticals, more notably in the industrial and EV, aerospace, outerspace and strategic electronics and railways verticals.

Kaynes Technology’s operating profit or EBITDA stood at ₹95 crore in the March quarter, registering a growth of 60.5% as against ₹59 crore seen in the corresponding quarter of last fiscal year.

EBITDA margin contracted by 134 basis points to 14.9% in the quarter, compared to 16.3% in the same quarter last year.

The company’s orderbook surged from ₹3,789 crore in the third quarter of FY24 to ₹4,115 crore in the fourth quarter.

The average order inflow per month increased from ₹279 crore per month in the December quarter to ₹321 crore during March 2024.

“The company’s order book soared to ₹4,115 crore, providing us strong visibility of growth for FY25 and beyond at similar growth rates and improved margins. The working capital cycle has reduced to 83 days in FY24 from 99 days in FY23,” said Ramesh Kunhikannan, Managing Director and Promoter, Kaynes Technology India Ltd.

Kaynes continues to invest in new initiatives and execute projects in newer high-potential segments.

“These strategic initiatives are poised to strengthen the company’s competitive edge and make Kaynes an Integrated EMS Company. Many new initiatives are in the planning stage to support this strategy. We continue to expand capabilities across verticals with a clear focus on the outlined strategy of continuous expansion of customer base with a focus on large accounts with a growing share of value-added services,” Kunhikannan said.

Kaynes Technology India shares are trading with gains of 12.76% at ₹2,895 apiece on the NSE. The stock was listed in November 2022 at a 32.5% premium to its issue price of ₹587. Since then, the stock is up 5 times, having gained 150% over the last 12 months.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Biocon shares may rally another 18% as firm sees a stronger second half of FY25

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Biocon Ltd’s fourth-quarter revenue was mostly in line with Street estimates. The key highlight of the quarter was core biosimilar sales at $282 million, growing by 10% quarter-on-quarter driven by market share gains across molecules.

On Friday, shares of Biocon opened a percent higher and were nearing their 52-week high levels of ₹321.20. The stock has recovered nearly 45% from its 52-week low of ₹217.50.

Biocon shares have also gained 30% over the last six-month period and are up 20% so far this year.

The street’s divided.

Here’s a look at the target price for Biocon shares:

While Biocon’s March quarter performance provides some hope, domestic brokerage firm Kotak Institutional Equities maintains its cautious view on the company executing its core biosimilars business given the weak track record.

Elevated net debt remains a concern, Kotak highlighted in its note.

“While the biosimilars performance is encouraging, the company is guiding for overall revenue growth to pick up only in the second half of FY25 due to sluggishness across the three segments in the first half of FY25,” it said.

Amid execution risks, Kotak believes there is limited scope for positive surprises. The brokerage retained a ‘reduce’ rating on the Biocon stock with a revised target price of ₹275 from ₹260 per share earlier.

Nuvama in a note said that Biocon’s efforts in gaining biosimilar market share are encouraging; however, higher integration expenses and pricing pressures impacted profitability.

The brokerage reckons revenue and EBITDA CAGR estimates to be 19% and 24%, respectively, over FY24 to FY26 as its biosimilars and GLP-1 pipeline holds promise.

“Any delay in R&D monetisation and regulatory hurdles, besides high debt and subdued RoCEs pose challenges,” Nuvama said while suggesting a ‘reduce’ rating and a revised target price of ₹260 from ₹240 a share earlier.

Global brokerage firm Citi has a ‘buy’ rating on the counter, with a revised upward target price of ₹365 per share.

Generics were subdued due to API pricing, but the company was upbeat on outlook of its GLP-1 pipeline that is expected to unfold over the next 24 months, the brokerage noted.

“In biosimilars, execution in the in-market assets is quite evident with market share expansion while pipeline build-up is progressing well with USFDA acceptance of bStelara and potential filing of bDenosumab in next few months,” it said.

Citi believes that new approvals are key to a meaningful step up.

According to Goldman Sachs, margins surprised positively due to better gross margins as well as lower R&D expenses. The brokerage has a ‘buy’ call on Biocon with a target price of ₹320 per share.

Jefferies, meanwhile, has an ‘Underperform’ rating, citing March quarter earnings were below estimates due to the weak performance of generics and research services divisions. It has a target price of ₹230 a share on Biocon.

The foreign brokerage said the company’s outlook for FY25 appears lacklustre with most growth drivers for generics and biosimilars being back-ended and uncertain.

Leverage remains high and asset sales could be the only meaningful lever for debt reduction, it said.

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Stocks to Watch: Vedanta, PB Fintech, Biocon, Concor and more

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

HCL Infosystems clinches arbitration win against ITI, awarded ₹150 crore

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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IT firm HCL Infosystems Ltd on Thursday (May 16) said it has won the arbitration case against ITI Ltd, concerning the recovery of dues related to the commissioning of telecom networks for BSNL and MTNL.

“…that the company has received final arbitration Award, in the arbitration filed by the company against ITI Limited for recovery of its dues towards commissioning of telecom network for BSNL & MTNL,” according to a stock exchange filing.

The final arbitration award, received by HCL Infosystems, brings relief in the form of a monetary award amounting to approximately ₹150 crore, inclusive of interest calculated at 11% per annum until the date of the award.

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The dispute between HCL Infosystems and ITI revolved around the commissioning of telecom infrastructure for Bharat Sanchar Nigam Ltd (BSNL) and Mahanagar Telephone Nigam Ltd (MTNL). HCL Infosystems filed the arbitration seeking recovery of its dues, which has now resulted in a favourable outcome for the company.

Additionally, the counterclaims worth ₹111 crore filed by ITI against HCL Infosystems have been disallowed as part of the arbitration award. Both HCL Infosystems and ITI retain the right to file objections against the award, if deemed necessary, before the appropriate court of law.

Shares of HCL Infosystems Ltd ended at ₹17.00, down by ₹0.12, or 0.70% on the BSE.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Patanjali Foods to divest stake in Ruchi Ethiopia Holdings following insolvency resolution

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Patanjali Foods Ltd, formerly known as Ruchi Soya Industries Ltd, on Thursday (May 16) said it is divesting its stake in Ruchi Ethiopia Holdings Ltd. This decision comes as part of the resolution plan approved by the Mumbai bench of the National Company Law Tribunal (NCLT) under Section 31 of the Insolvency and Bankruptcy Code, 2016.

The board of directors of Patanjali Foods, in a meeting held on March 27, 2020, resolved to dispose of its investments in its subsidiaries in favour of Sanatan Multi Skill Development and Education Private, identified as the buyer. Sanatan will hold these shares for beneficial liquidation.

Ruchi Ethiopia Holdings had reported nil revenue and a net worth of $5,67,179 as of March 31, 2019. Following an evaluation based on audited accounts, the fair market value of the shares was determined to be $5,66,864. Considering the negative fair market value, the board of directors approved a sale consideration of $1, with the company receiving the equivalent INR value.

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The share purchase agreement for the disposal of 28,543 ordinary shares of 1000 AED (UAE dirhams) each was executed on March 27, 2020. The expected completion of the sale/disposal was on May 15, 2024, following the approval of the amendment in the memorandum and articles of association of the subsidiary by the Jebel Ali Free Zone Authority (JAFZA) with effect from January 11, 2024.

Notably, the buyer, Sanatan Multi Skill Development and Education Private, is not affiliated with the promoters, promoter group, or group companies of Patanjali Foods.

Shares of Patanjali Foods Ltd ended at ₹1,392.25, up by ₹9.55, or 0.69% on the BSE.

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Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Vodafone Idea loss widens on higher interest costs but telco sees rise in ARPU

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Debt-saddled telecom operator Vodafone Idea Ltd on Thursday (May 16) reported a net loss of ₹7,674.6 crore for the fourth quarter that ended March 31, 2024.

In the corresponding quarter, Vodafone Idea posted a net loss of ₹6,419 crore, the company said in a regulatory filing. The company’s revenue from operations stood at ₹10,606.8 crore as against ₹10,532 crore in the corresponding period of the preceding fiscal.

At the operating level, EBITDA stood at ₹4,336 crore in the fourth quarter of this fiscal over ₹4,210.30 crore in the corresponding period in the previous fiscal.

For the year ended March 31, 2024, Vodafone Idea posted a widening loss to ₹31,238.4 crore from ₹29,301.1 crore a year ago. The annual revenue from operations was marginally higher by 1.1% to ₹42,651.7 crore from ₹42,177.2 crore in 2022-23.

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The Average Revenue Per User (ARPU) improved to ₹146, up 7.6% on a year-on-year basis vs ₹135 in Q4 of FY23, primarily aided by a change in entry-level plan and subscriber upgrades. The total data traffic for the quarter witnessed a year-on-year growth of 4.3%.

On May 8, 2024, the shareholders approved an equity infusion of ₹2,075 crore on a preferential basis, from an Aditya Birla Group (ABG) entity, at an issue price of ₹14.87 per share.

This coupled with the preferential equity raise of ₹4,940 crore in 2022 from Vodafone Group and ABG takes the total fund infusion by both the promoter groups to ₹7,000 crore between March 2022 and May 2024.

Post the follow-on public offer (FPO), preferential allotment and conversion by ATC, the promoter shareholding stands at 38.2% and the government of India shareholding at 23.8%.

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The company said it’s in discussions with a consortium of banks to raise up to ₹25,000 crore and additional non-fund-based facilities of up to ₹10,000 crore. Post the telecom reforms package in September 2021, the company’s bank
exposure has been reduced by ₹34,600 crore

The equity funding and debt funding including non-fund-based facilities are to be utilised primarily towards capex which is expected to be in the range of ₹50,000 to ₹55,000 crore over the next 3 years. The capex will be towards expanding 4G population coverage in 17 priority circles, 5G launch in key cities or geographies and capacity expansion to address the increasing data demand.

The results came after the close of the market hours. Shares of Vodafone Idea Ltd ended at ₹13.15, down by ₹0.040, or 0.30% on the BSE.

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Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

GameStop and AMC extend slump as meme-fueled rally unravels

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Triveni Turbine Q4: Profit surges 36%, dividend of ₹1.3 per share declared

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Triveni Turbine reported its financial numbers for the quarter ended March 2024 on Thursday, May 10. The company’s net profit came at ₹75.6 crore, up 36.2% from ₹55.5 crore in the year-ago period. The revenue from operations for the March quarter grew 24% to ₹458.1 crore against ₹369.8 crore in the corresponding period in FY23.

The turbine manufacturer’s earnings before interest, tax, depreciation, and amortisation (EBITDA) jumped 35.3% to ₹89.8 crore from ₹66.4 crore last year. The company also announced a final dividend of ₹1.3 per share.

Triveni Turbine’s other income rose to ₹18 crore from ₹10.9 crore earlier. During the quarter, total expenditure, including finance cost, came at ₹320 crore, while finance cost rose to ₹0.6 crore.

The shares of Triveni Turbine closed over 3% in the green on Thursday, May 16, after hitting a 52-week high of ₹612.7 crore earlier in the session. The stock has gained 43.52% in 2024 so far.

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3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

JK Paper declares final dividend of ₹5, quarterly net profit dips slightly, revenue flat

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Paper and packaging board company JK Paper Ltd on Thursday (May 16) reported a 1.7% year-on-year (YoY) dip in net profit at ₹275.6 crore for the fourth quarter that ended March 31, 2024.

In the corresponding quarter, JK Paper posted a net profit of ₹280 crore, the company said in a regulatory filing. The company’s revenue from operations remained unchanged at ₹1,719 crore.

At the operating level, EBITDA tanked 26% to ₹358 crore in the fourth quarter of this fiscal over ₹483 crore in the year-ago period.

The EBITDA margin stood at 20.8% in the reporting quarter against 28.1% in the corresponding period in the previous fiscal. EBITDA is earnings before interest, tax, depreciation, and amortisation.

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The board of directors has recommended a final dividend of ₹5 per share (50%), on the equity share capital for the financial year ended March 31, 2024. This is in addition to an interim dividend of ₹3.5 (35%) per equity share declared and paid during FY24.

Harsh Pati Singhania, Chairman and Managing Director, said, “Significant increase in raw material cost and lower realisation across all categories have impacted performance during the quarter and year as a whole. The selling prices continued to remain under pressure due to an increase in imports. However, sales volumes grew by 2.3% in paper and boards during the year and the company continues to focus on operational efficiencies.”

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He added, that the board of directors at its meeting held today (May 16) has approved the acquisition of a balance of 15% equity shares of its subsidiary companies Horizon Packs Private Ltd (HPPL) and Securipax Packaging Private Ltd (SPPL). Following this acquisition, HPPL and SPPL will become wholly-owned subsidiaries of the company.

The results came after the close of the market hours. Shares of JK Paper Ltd ended at ₹350, up by ₹4.85, or 1.41%, on the BSE.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow