Tag: General Elections

Antique initiates coverage on Hi-Tech Pipes with a ‘buy’, cites these factors

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

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Brokerage firm Antique has initiated coverage on Hi-Tech Pipes with a ‘buy’ rating and a target price of ₹200 per share.

The brokerage firm expects the steel processing company’s volume to expand to 1 million tonne per year in the next financial year versus the current volume of 0.75 million tonne per year.

In March 2024, the company commissioned Sanand Unit-ll Phase -1 taking the total installed capacity to 0.75 million tonne.

“We have added approximately 1.25-1.5 lakh tonne of capacity at the Sanand facility. I am sure that the company will contribute at least a lakh to 1.5 lakh tonne extra over FY24,” Anish Bansal, CEO, Hi-Tech Pipes said in an interview with CNBC-TV18.

Hi-Tech Pipes also achieved its highest ever sales volume during December-March 2023, at 1,07,721 tonne,

The sales volume was at 3,91,147 tonne in FY24.

The brokerage firm also expects the company to benefit from an improved product mix and operating leverage.

Hi-Tech Pipes has a strong presence in steel pipes, hollow sections, tubes, cold rolled coils and strips, road crash barriers, solar mounting structures, GP/GC Sheets, colour-coated coils and a variety of other galvanised products.

Antique expects the company’s long-term blended earnings before interest, tax, depreciation, and amortisation (EBITDA) per tonne to be around ₹4,000–4,500.

Also Read | Apollo Pipes spends ₹118.40 crore for 53.57% share capital and voting rights in Kisan Mouldings

The working capital days of the company have been decreased from 78 days in FY20 to 49 days in FY23.

“Going forward, our focus is towards further shrinking of this working capital. 30-35 days is the optimistic number that we can consider for the next two financial years,” he said.

The company is targeting the total share of value-added products (VAP) in the current financial year (FY25) to reach around 40% and subsequently 50% in FY26 from 31%.

“This will happen due to the new products that we have introduced like solar top tubes, color-coated sheets and some special SKUs catered to bullet train projects,” he explained.

In FY26, Hi-Tech Pipes’ peak utilisation is expected to be around 70%.

“6.5-7 lakh tonne is our targeted volume for FY26,” he said.

While expanding, the company has brought down its long-term debt and in the next one to two years, it will be a debt-free company, Bansal stated.

In terms of order book, Hi-Tech Pipes currently has ₹250 crore of orders in hand related to various projects.

Post General Elections 2024, he sees robust spending on the infrastructure side. “All the schemes like Jal Jeevan Mission, renewable energy are going to outperform. Since pipes are a versatile product, I am sure that the demand is going to come,” he said.

Also Read | Budget 2024 reinforces focus on infrastructure with capex raised to ₹11.11 lakh crore

The current market capitalisation of the company is ₹2,066.92 crore.

For more, watch the accompanying video

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

Anand Shah of ICICI Pru AMC is bullish on these sectors

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

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Anand Shah, Head-PMS and AIF Investments, ICICI Pru AMC continues to remain overweight on manufacturing sector and underweight on the information technology space.

Along with manufacturing, he has been overweight on power and banks.

“Power is another area where we are seeing growth sustaining into the next few years. Apart from that, corporate banks would also be beneficiaries of recoveries of the past non-performing assets (NPAs),” Shah told CNBC-TV18.

He believes the growth expectations from the IT sector need to be reset.

“There is still some time to go before the real growth that one would see in the IT companies and what investors are expecting – that misalignment is still a few quarters away,” he said.

Also Read | SEBI raises questions on ‘mis-selling’ of products by several mutual fund houses

In the cement space, he believes the next three months would see a general slowdown ahead of the elections .

However, from a long-term perspective, urbanisation leading to growth in housing will be the key driver for the cement sector.

“Cement would be the key ingredient in infrastructure and housing. So we have been underweight on cement for a while but that is one sector which will have good growth, good operating leverage given that the pricing is weak,” he said.

For more, watch the accompanying video

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

Soybean oil prices likely to continue to taper, says industry association

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

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DN Pathak, Soybean Processors Association of India (SOPA) believes that soybean oil prices will continue to taper as supplies are strong.  “We don’t see anything bullish in the current market scenario,” he told CNBC-TV18.

Soybean prices haven’t seen much support in the last couple of months with international markets near 3-year lows.

Also Read | Traffic hit at Delhi-Noida border in view of farmers’ tractor march

Pathak noted that farmers have been holding on to soybean stock in the hope that the prices will at least be slightly above the minimum support price (MSP) but that is not happening. “I don’t see that happening soon, overall there is a rejection among the farmers and the support does not seem to be coming from anywhere,” he said.

Overall scenario is grim for the oil seeds and oil crushing industry, he believes. However, there could be some price action after the general elections.

Also Read | This NITI Aayog member explains why he’s against MSP as a legal right

Speaking about the ongoing farmer protests on MSP, he said, “I don’t know whether it is legally possible to give legal guarantee.”

The farmer protest, organised by groups primarily from Punjab, Haryana, and Uttar Pradesh, have two major demands; one, MSP should be written into law, and two, the calculation of MSP should include assumed rent (even in case of owned land) as well as some capital cost.

For more, watch the accompanying video

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

India to continue with policy announcements, price interventions in run-up to general elections

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

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The government is likely to offer more relief and incentives in the run-up to the general elections, sources told CNBC-TV18. While a few announcements have already been made, several additional proposals that are under consideration may be introduced starting in December and could spill over into next year’s interim budget.

The government’s fiscal position is currently well-balanced, with tax buoyancy and effective expenditure management enabling it to maintain its financial strength for contingencies.

In the latest series of announcements, the government has decided to extend the free food grain scheme, known as the Pradhan Mantri Garib Kalyan Ann Yojana, by 5 years. Additionally, in preparation for state polls, the government has reduced LPG prices in two phases: first through price reductions by the oil marketing companies and second by increasing the Ujwala subsidy.

The government also intends to roll out a new home loan subsidy scheme for urban residents, pending cabinet approval.

It is also likely that some of the welfare announcements may not lead to significant immediate fiscal outflows, and the spending will be spread out over a period. Both the extension of PMGKAY and the new home loan subsidy scheme, each lasting 5 years, are expected to have minimal impact on this year’s budget.

So far this fiscal year, spending by certain ministries, including rural development, railways, roads & highways, and the food and fertiliser departments, appears to be slower than in the previous fiscal year.

Nonetheless, the government’s total spending remains on track, with 47% of this year’s budget utilised between April and September. The finance ministry anticipates that government expenditure will pick up in the second half of the fiscal year and is determined to avoid any “undershooting” of the FY24 budget estimates.

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

CG Power says switchgear orderbook up 64%; polls may impact ordering in H2

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

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Natarajan Srinivasan, MD and CEO of CG Power and Industrial Solutions sees a combination of factors, including geopolitical tensions and upcoming elections, influencing the company’s performance.

In a conversation with CNBC-TV18, Srinivasan said despite the challenges, strong execution will help them maintain both the topline and bottom line.

In the second quarter, the company’s standalone net sales grew close to 20% to ₹1,900.14 crore. Net profit close to doubled on-year to ₹355.24 crore.

Srinivasan noted that with the power segment, which encompasses transformers and switchgear, unexecuted order books have seen remarkable growth. The unexecuted order book for transformers has surged to ₹1,958 crore, marking a 74% year-on-year (YoY) increase, while for switchgear, it has jumped 64% YoY to around ₹1,278 crore.

The company retained its revenue guidance in the range of ₹7,000-7,500 crore for the fiscal year 2024.

CG Power and Industrial Solutions recently announced an expansion of capacity in the switchgear segment. The consolidated order book now stands at ₹5,229 crore.

When it comes to the railways and motor segments, Srinivasan foresees ordering continuing on a quarter-on-quarter basis. He mentioned, “It will probably be the same unless in railways we are going to get some project orders.”

The company’s stock has risen close to 27% over the last six months and over 46% over the last 12 months. The company’s shares have been on a positive trend since it announced its debt- free status in March.

For more details, watch the accompanying video

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

Next important touch point for market is the 2024 Lok Sabha elections, says Bernstein MD

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

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Lok Sabha elections in 2024 is poised to be the next most important touch point for the Indian stock market, says Venugopal Garre, Managing Director at Bernstein, a prominent investment research and asset management company.

In a recent interview with CNBC-TV18, Venugopal Garre shared valuable insights into the Indian market’s current state and what investors should keep an eye on in the coming months. Garre’s perspective provides a comprehensive overview of the market’s landscape and highlights key factors that will shape investment decisions.

One of the first topics Garre touched upon was the significance of the 2024 general elections in India. He noted that this event is poised to be a pivotal touch point for the market.

“What is going to happen from here in my view is that, even if I take a broadly positive construct in the market, for me the next touch point is broadly elections,” he said.

Political stability and government policies have a profound impact on economic growth and investor sentiment. Investors will closely watch the election outcomes and potential policy shifts as they can influence market dynamics significantly.

Despite acknowledging the presence of downside risks, Garre remained positive about the market’s overall outlook.

“I am still positive on the markets. My view hasn’t changed with respect to downside risks. So positive primarily from here means that there are limited downside risks,” he said.

Also Read | 227 crore shares of 37 companies to open up from shareholder lock-ins until December 31 – Check list here

He pointed out that corporate balance sheets in India are exceptionally strong, and companies are cautious about their capital expenditure (capex) plans. This prudent approach by businesses reflects their preparedness to weather potential economic headwinds.

Garre stressed the importance of monitoring how companies utilise their free cash. With robust balancesheet and careful capex planning, companies have the financial flexibility to invest in growth opportunities or return value to shareholders. The strategic allocation of free cash will be a key determinant of a company’s success in navigating market challenges.

“The only thing which we need to watch from here is how companies are going to now use the free cash,” he said.

Discussing sectoral allocations, Garre highlighted the continued overweight position in the financial sector. This overweight stance is primarily driven by large banks, which are expected to benefit from a stable economic environment and prudent lending practices. Financials remain a key driver of India’s economic growth, making this sector a critical component of the investment landscape.

“My conviction in the financial sector hasn’t taken any backseat yet. That is my largest overweight,” he mentioned.

“My conviction in the financial sector hasn’t taken any backseat yet. That is my largest overweight,” he mentioned.

Garre expressed a neutral view on the auto sector, while also noting that consumption is underweight in the portfolio. This stance suggests a cautious approach toward sectors closely tied to consumer spending.

“Autos I am neutral, I do have some buy ideas but I am not looking at a large amount of returns from here,” he explained.

But, within IT space, he is overweight on consumer tech.

“The consumer tech companies, some of the new economy companies related to food delivery or even fintech, that is a key overweight for us,” he said.

For more details, watch the accompanying video

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

FM Nirmala Sitharaman to kick-start pre-Budget meetings from November 21

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

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Union finance minister Nirmala Sitharaman will kick-start the customary pre-budget meetings beginning Monday with a special focus on issues concerning climate change and infrastructure.

The minister would hold virtual meetings on November 21 in three groups with industry chambers, infrastructure sector and environment experts seeking suggestions for the 2023-24 Budget making from stakeholders.

On November 22, Sitharaman would meet agriculture and agro processing industry, representatives from financial sector and capital markets.

She will also be meeting the representatives of services sector and trade bodies, besides experts from social sector, including health, education, water and sanitation, on November 24.

Also Read: Independence of chartered accountants is important for trust of financial stakeholders, says Nirmala Sitharaman

The pre-budget meetings with the trade union representatives and economists are scheduled for November 28.

The participants will give suggestions on the 2023-24 budget which will be presented in Parliament by the Finance Minister on February 1.

Sources said climate change would be one of the priority areas in 2023-24 budget making as India has pledged to become a net zero emitters of carbon by 2070.

The budget for the next year will have to address critical issues of high inflation, boosting demand, job creation and putting the economy on a sustained 8 percent-plus growth path.

It will be the fifth budget of the Modi 2.0 government and Sitharaman, and the last full budget before the general elections slated in April-May 2024.

Also Read: RBI governor-headed panel reviews global and domestic economy

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

Thai PM Prayuth Chan-ocha survives 4th no-confidence vote, last big test before polls

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

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Thai Prime Minister Prayuth Chan-ocha and 10 cabinet ministers survived no-confidence votes in parliament on Saturday, with the government emerging on top in Prayuth’s last major test ahead of a general election due within 11 months.

The 68-year-old former army chief, in power since a coup he led in 2014, received 256 votes in favour and 206 against with nine abstentions, securing his position as premier until his term ends in March. Three deputy prime ministers and seven other cabinet members also survived the censure motion.

The opposition had needed more than 239 of the 477 parliamentary votes to oust the prime minister.

“During the censure debate in the past few days, the issues raised by the opposition contain some incorrect information and the government has used this opportunity to clarify things,” said government spokesman Thanakorn Wangboonkongchana.

“Now that the censure debate is completed we urged the opposition to work with us for the people and the country.”

The prime minister and 10 cabinet members underwent four days of grilling live on television from an opposition that accused them of corruption and economic mismanagement, in an effort to discredit the ruling 17-party coalition before the next polls.

It was the fourth time Prayuth’s performance had been put to a vote since he was chosen by the house to remain prime minister in 2019, following an election the opposition said was held under rules designed to keep him in power. Prayuth has rejected that assertion.

Despite recent opinion polls showing his popularity declining, Prayuth had been expected to prevail, according to political analysts, some of whom saw the censure motion as a move by the opposition to court public support ahead of the next election.

“We know that in parliament we cannot compete but we have faith in the people because we did not lose and the deciding factor will be the election,” the leader of the opposition bloc, Chonlanan Srikaew, told reporters.

Youth-led protest groups that emerged in July 2020 to challenge the government gathered in front of parliament through the censure debate and held a parallel vote of no-confidence resulting in 16,690 votes against the government and only 251 in favour.

Prayuth has given no indication of when an election will be called.

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

Poll strategist Prashant Kishor draws plan for ‘reincarnation of Congress’

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

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Poll strategist Prashant Kishor, popularly referred to as PK, who seems all set to join the Congress in the next few days, has presented a roadmap for the revival of the grand old party in the 2024 general elections and the upcoming state elections.

According to The Hindu, Kishor made many presentations to the Congress leadership in the past few days, in which he advised fixing the leadership issue in the party and reclaiming the party’s founding tenets.

The election strategist also suggested building an army of leaders at the grassroots level, solving the alliance conundrum and creating an ecosystem for supportive media and digital propagation.

At present, the Congress is analysing the suggestions made by Kishor in his 600-slide presentation.

Although no one has viewed the entire presentation, The Hindu had accessed one of the several presentations made by Kishor, which ran into 88 slides.

Also read: Poll strategist Prashant Kishor likely to join Congress ‘without any preconditions’

What are the suggestions?

Kishor is recommending a non-Gandhi as the party president and Sonia Gandhi as the head of the alliance, but the viability of the plan is difficult. Hence, Kishor has suggested Sonia Gandhi remain party president, while appointing a non-Gandhi as the working president.

He has also suggested the revival of the Parliamentary Board with Rahul Gandhi as the chief. Kishor said Priyanka Gandhi Vadra should be made general secretary in-charge of coordination.

In one slide, Kishor referred to the six symbols of Nataraja, the dancing form of Lord Shiva, and called for the reincarnation of the Congress party.

Apart from that, Kishor urged that the party form a new Congress that would appeal to the populace. According to The Hindu, protecting the party’s legacy and core principles is also part of the several suggestions made by Kishor.

Earlier the poll strategist had suggested that Congress contest alone in Bihar and Odisha, while forming alliances in Tamil Nadu, West Bengal and Maharashtra, Business Standard reported.

Also read: Congress leaders discuss party’s strategy for Gujarat, Himachal polls

‘It is about Winning India in 2024’

Kishor had made the presentation to the Gandhis last year, in which he listed reasons for the party’s steady decline since 1984. He had listed lack of connect with the masses, failure to capitalise on legacy and achievements and structural weaknesses as being primary reasons for the downslide.

“It is about Winning India in 2024,” NDTV quoted from the plan.

Senior leaders need to rebuild the party and democratise it for the “reincarnation of the Congress”, the plan said.

Joining the Congress

The Congress has set up a committee of senior members who will examine the proposals by Kishor and submit the report to party chief Sonia Gandhi.

Kishor is likely to meet Sonia Gandhi, Rahul Gandhi and Priyanka Gandhi today, a meeting that could confirm his induction into the party.

Kishor is reputed for having successfully planned the poll strategy for parties like AAP, Trinamool Congress and DMK.

Also read: 40 lakh Indians died due to ‘govt negligence’ during Covid: Rahul Gandhi

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