Tag Stock Market

BSE ltd
BSE Ltd Announces 2:1 Bonus Share Issue: Board Approval & Market Impact

Business and Industry Overview: 

BSE Ltd., or the Bombay Stock Exchange, is one of the oldest stock exchanges in India. It was founded in 1875 by Premchand Roychand. The exchange is located on Dalal Street in Mumbai. It is Asia’s oldest stock exchange and the 6th largest in the world. As of May 2024, BSE’s market value is over US$5 trillion. BSE provides a platform for trading stocks, bonds, mutual funds, and derivatives. It allows companies to raise money by selling shares to the public. At the same time, it offers people opportunities to invest and grow their wealth. The trading system is electronic, making it safe and transparent. BSE has introduced many new services over time. In 2016, it launched India INX, India’s first international exchange. In 2018, it became the first exchange in India to offer commodity trading in gold and silver. BSE also provides services like market data, clearing, settlement, and risk management. BSE is a part of global efforts to promote sustainable investment. In 2012, it joined the United Nations Sustainable Stock Exchange initiative. Despite challenges, like a bomb explosion in its building during the 1993 Bombay bombings, BSE has continued to grow. In 2007, it was demutualized and corporatized to improve management. It was listed on the National Stock Exchange in 2017. BSE is an important part of India’s economy. It helps companies raise money and gives investors a place to trade. BSE’s main stock market index, the SENSEX, tracks the performance of 30 leading companies. BSE continues to innovate and play a key role in India’s financial growth. 

India’s stock market is a key part of the country’s economy. It allows people to buy and sell shares of companies. These shares represent a small ownership in the company. When people buy shares, they are investing their money in the company, hoping to make a profit as the company grows. There are two main stock exchanges in India: the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE). The BSE is the oldest stock exchange in India, established in 1875. The NSE started in 1992 and is now the largest exchange in India by trading volume. The stock market in India is regulated by the Securities and Exchange Board of India (SEBI). SEBI’s job is to ensure the market is fair. It makes sure that all investors, big and small, are treated equally. SEBI also ensures that companies follow the rules when listing shares on the stock exchanges. There are two main indexes that track the performance of the stock market in India: Sensex and Nifty. Sensex is based on 30 of the largest companies on the BSE. Nifty is based on 50 companies listed on the NSE. These indexes help investors see how the stock market is performing. Trading in the stock market is done electronically. People place buy or sell orders on a computer system. The system matches buyers and sellers automatically. This makes trading faster and easier. All trades are settled the next day in India’s stock market. India’s stock market also allows foreign investors to invest. Foreign investors can buy shares in Indian companies. They can do this in two ways: Foreign Direct Investment (FDI) and Foreign Portfolio Investment (FPI). FDI is when a foreign investor buys a large stake in a company, while FPI is when they buy shares without controlling the company. There are limits on how much foreign money can go into certain industries. Retail investors, both in India and abroad, can also invest in Indian stocks through Exchange-Traded Funds (ETFs) and American Depository Receipts (ADRs). These are easier ways to invest in Indian companies without directly buying shares on the stock exchanges. Overall, India’s stock market is growing rapidly. More companies are being listed, and more people are investing. It helps businesses raise money and offers people a chance to invest in India’s growth. The market is becoming more important in the world. BSE Limited is one of the biggest stock exchanges in India. It is the oldest stock exchange, starting in 1875. While the National Stock Exchange (NSE) is bigger in terms of trading volume, BSE is still very important because it has the most companies listed. As of January 2024, BSE had 5,315 companies listed, which is more than twice the number on the NSE. BSE stays competitive by offering different types of trading, like stocks, commodities, and currencies. It also expanded globally with India INX, which helps it attract foreign investors. This makes BSE a player in the international market too. BSE is also known for being fair and transparent. It follows strict rules set by SEBI, which protects investors and ensures trust in the market. Even though NSE has more trades happening every day, BSE’s long history, more companies, and focus on fair trading help it remain competitive. In simple terms, BSE stays strong by offering more options for investors, being trustworthy, and having a long history that makes it important in the stock market. 

Latest Stock News: 

BSE Ltd’s stock has gone up a lot recently. On March 28, 2025, the price of the stock went up 12% to ₹5,225. This happened for a few reasons. First, the Securities and Exchange Board of India (SEBI) released a consultation paper. This paper suggested that all stock exchanges should limit the expiry days for equity derivative contracts to either Tuesday or Thursday. This is important because expiry days are when these contracts end, and it can affect how much people trade. This idea was good for BSE because BSE already has Tuesday as its expiry day. NSE, its competitor, was planning to change its expiry day to Monday. But now, SEBI’s proposal could stop NSE from doing that. This change helps BSE. 

In the past two days, BSE’s stock price has gone up by 17%. This is because on March 26, 2025, BSE said it would think about giving bonus shares on March 30, 2025. Bonus shares mean that current shareholders will get more shares for free. BSE had given bonus shares in the past at a 2:1 ratio. This means for every one share someone owned, they would get two extra shares. 

BSE’s stock has come back strongly after hitting a low of ₹3,682 on March 11, 2025. It has gone up by 42% since then. Earlier in the year, on January 20, 2025, the stock reached a high of ₹6,133.40. Right now, the price is ₹5,204.45, which is much higher than before. 

SEBI’s paper came out when NSE was planning to change its expiry day. This could have affected trading volumes. But now that SEBI wants to keep the expiry days for both BSE and NSE stable, it is good for BSE. BSE will stick with its Tuesday expiry day, while NSE may keep its Thursday expiry day. 

Experts believe that this change will help BSE grow. The new rule will make BSE’s market share in derivative trading stay steady. Because the expiry days for BSE and NSE will be spaced out, BSE will continue to grow in the future. 

Overall, the news is positive for BSE. It is likely to keep growing, but there may still be some concerns about future rules. But for now, BSE is on a strong path to success. 

Potentials: 

BSE Ltd. has big plans to grow. One plan is to give bonus shares to its investors. This will make shareholders feel happy and keep them interested in the company. BSE is also focusing on improving its options trading market. This is an important part of its business, as it helps BSE earn a lot of money. However, BSE is facing challenges. The National Stock Exchange (NSE) is changing its expiry day for options contracts. Instead of Thursday, it will now be on Monday. This change could hurt BSE’s business. BSE needs to find ways to stay strong in this competitive market. There are also legal problems. A court has ordered an investigation into some decisions made by past BSE officials. This issue could harm the company’s reputation. Also, there are worries about new rules that may affect BSE’s operations. Despite these challenges, BSE is not giving up. It is working hard to improve its services and keep growing. The company is making plans to face the difficulties ahead. By doing this, BSE hopes to remain strong in the future. 

Analyst Insights: 

  • Market capitalisation: ₹ 75,043 Cr. 
  • Current Price: ₹ 39.0 
  • 52-Week High/Low: ₹ 75.6 / 38.8 
  • Stock P/E: 24.3 
  • Dividend Yield: 0.00%
  • Return on Capital Employed (ROCE): 5.41%
  • Return on Equity (ROE): 9.98%

BSE Ltd. is one of the oldest stock exchanges in Asia, and it has been around for over 140 years. It is a strong and trusted company. BSE does not have debt, which is good because it doesn’t owe money. This makes it safer for investors. The company is growing well. Its profit has been increasing a lot. In the last quarter, BSE made more money than before. This shows it is becoming more successful. The company also gives back some of its profits to shareholders. This is called a dividend, and BSE’s dividend payout is about 57%, which is healthy. BSE is very fast. It can complete trades in just 6 microseconds, making it one of the fastest exchanges in the world. This speed helps BSE stay ahead of others. It also offers many trading options, like stocks, bonds, and derivatives. This makes BSE an important player in the market. Even though the price of BSE’s stock is high compared to its earnings, the company’s strong position in the market makes it a good investment for the long term. Overall, BSE is a stable, growing company with a good future, making it a smart choice for investors. 

Mutual Funds-ETFs at a Premium
Mutual Funds Sound Alarm on Buying International ETFs at a Premium

Fund houses and wealth managers are raising concerns about the rising trend of investors purchasing international exchange-traded funds (ETFs) trading at significant premiums to their net asset value (NAV). The caution comes amidst a surge in interest among Indian investors seeking exposure to global markets, particularly the U.S., following Donald Trump’s recent victory in the U.S. Presidential election. 

International ETFs, designed to provide investors with access to foreign markets, are seeing a mismatch in demand and supply due to regulatory restrictions on the creation of new units. This imbalance has caused many ETFs, especially those tracking U.S. markets, to trade at premiums well above their NAVs. Experts warn that such buying behaviour could lead to disappointing returns when the premium diminishes, and the ETF’s market price aligns with its underlying NAV.

What Are ETFs, and Why the Premium?

ETFs are passively managed investment instruments that track indices, commodities, or baskets of securities, offering low expense ratios compared to mutual funds. They are traded on exchanges like stocks, allowing investors to enter or exit positions throughout the trading day. Fund houses typically appoint market makers to provide liquidity, and large investors can approach fund houses for unit creation or redemption. 

However, a demand-supply mismatch has emerged due to regulatory limitations on fresh unit creation in international ETFs. This has led to existing units being in short supply, driving up their prices on exchanges relative to their NAV.

Industry Experts Weigh In

Prateek Bhardwaj (hypothetical name), an experienced wealth manager, explained the risk: 
“Investors need to understand that paying a premium over NAV is essentially overpaying for the asset’s intrinsic value. When the market price converges with the NAV, it could result in losses or reduced returns. This is particularly risky for investors eyeing short-term gains.” 

Another mutual fund executive noted, “The current premiums are a result of pent-up demand for global diversification, especially in the U.S. market, where optimism has risen post-election. However, without new units being created to meet this demand, the price distortion will persist.” 

The Risks of Buying at a Premium 

Purchasing ETFs at a premium means that investors are essentially paying more for the same value of underlying assets. Over time, as supply stabilizes or investor interest wanes, the ETF’s market price may decline to align with the NAV. This convergence can erode investor returns, particularly for those who bought during periods of inflated demand. 

What Should Investors Do? 

Wealth managers and fund houses recommend a cautious approach: 

  1. Monitor NAV and Market Price: Investors should ensure that they are not overpaying for ETFs by comparing the market price with the NAV before making a purchase. 
  2. Evaluate Long-Term Goals: International ETFs are best suited for long-term diversification. Short-term investments, especially during periods of price premiums, could result in suboptimal returns. 
  3. Be Patient: Experts suggest waiting for market corrections or fresh unit creations to stabilize prices, reducing the risk of buying at inflated levels. 
  4. Seek Professional Advice: Investors uncertain about their strategies should consult financial advisors to assess the suitability of international ETFs for their portfolios. 

        Why the Renewed Interest in U.S. ETFs? 

        The U.S. market has attracted renewed attention from Indian investors due to its robust economic performance, diversification benefits, and perceived growth potential following the recent political changes. ETFs tracking major U.S. indices, such as the S&P 500 or Nasdaq-100, are seen as effective vehicles for accessing these opportunities. 

        However, experts emphasize that such investments require due diligence. While the demand for global diversification is a positive trend, overpaying for these instruments during times of supply constraints could undermine the very benefits they offer. 

        Conclusion 

        International ETFs offer a valuable opportunity for Indian investors to diversify their portfolios and gain exposure to global markets. However, the current scenario of ETFs trading at a premium to NAV calls for restraint. Investors must prioritize research and avoid impulsive decisions driven by market trends. By focusing on long-term strategies and understanding the dynamics of ETF pricing, investors can maximize their returns while minimizing unnecessary risks. 

        Max Healthcare Institute Ltd.
        Max Healthcare Institute Ltd.: Comprehensive Overview, Growth, and Expansion

        Company Overview 

        Max Healthcare Institute Ltd. (MHIL) is one of India’s leading providers of healthcare services, known for its comprehensive and integrated approach to healthcare. Established in 2000 and headquartered in New Delhi, MHIL operates a network of hospitals and healthcare facilities that deliver world-class medical services. The company has a significant presence in North India and offers a wide range of services across multiple medical disciplines. MHIL operates 17 healthcare facilities, including tertiary and quaternary care hospitals, primary care clinics, and specialized centers. Its flagship hospitals include Max Super Speciality Hospitals in Saket, Patparganj, and Shalimar Bagh in Delhi-NCR. Max Healthcare aims to continue its leadership in the Indian healthcare sector by expanding its capacity, investing in cutting-edge technology, and enhancing its presence in underserved markets. 

        Return Summary 

        YTD 1 Month 6 Month 1 Year 2 Year 3 Year 5 Year 
        59.84% 5.01% 33.4% 60.59% 150.66% 189.16% – 

        3 Year Return: MAXHEALTH v/s NIFTY50 

        Result & Business Highlights 

        • Revenue for YoY and QoQ is at increasing phase at Q2 FY25 revenue of ₹1707 crore with moderate EBITDA margin of 26% at ₹451 crore. 
        • Average Revenue per Occupied Bed (ARPOB) for Q2 was ₹76,100, with a growth of 7% for existing hospitals. 
        • Newly operational Max Dwarka hospital reported revenue of ₹33 crore, EBITDA loss of ₹18 crore, 41% occupancy, and ARPOB of ₹80,000; expected to break even before year-end. 
        • Acquisition of Jaypee Hospital, Noida, valued at ₹1,660 crore, anticipated to enhance presence in the National Capital Region; plans to increase operational bed capacity from 376 to 430 by March 2025. 
        • Ongoing expansions include 140 beds at Nagpur, 268 beds at Nanavati, 400 beds at Max Smart, 155 beds at Mohali, and 501 beds at Sector 56 Gurgaon, all on schedule. 
        • Max Home reported a revenue of ₹53 crore, a growth of 24% YoY, offering 14 specialized service lines across 12 cities. 
        • Max Lab generated gross revenue of ₹47 crore, reflecting a strong growth of 21% YoY, with over 1,100 collection centers 

        Shareholding Pattern 

        Return Comparison with Peers 

        COMPANY 1 Year 2 year 3 Year 5 Year 
        Max Healthcare 60.59% 150.66% 189.6% – 
        Apollo Hospitals 30.37% 52.24% 33.91% 390.48% 
        Fortis Healthcare 78.88% 141.12% 143.11% 403.41% 
        Aster DM Healthcare 20.4% 111.31% 151.8% 212.8% 
        Narayana Hrudayalaya 8.35% 73.5% 129.73% 341.5% 

        Contribution to Industry Size 

        Max Healthcare is one of the largest healthcare companies, contributed a lot to its industry and to India. The underpenetration of hospital beds and demand supply gap is reduced and the insurance penetration in healthcare sectors is rising from 32% in FY17 to 41% in FY24. The operations or any surgery procedure cost in India is approximately 70% – 90% discount to average global cost. The increasing use of latest technology in the treatment process has benefited the healthcare industry be efficient and useful in cost cutting also. The occupancy of Max Healthcare is approx. 75%, while others in industry are at average of 65%. 

        Balance Sheet Analysis 

        • Reserves have increased very significantly from FY21 with high revenues and efficient management operations to ₹7436 crore in FY24. 
        • Borrowing has increased year on year but in significant manner, makes no worry. 
        • The cash on balance sheet is enough to pay dividends regularly and carry on every day operations easily. 
        • The fixed assets has increased to ₹9506 crore, as company is investing a lot in expanding beds, medical equipments, land acquisitions for new hospital branches. 

        Cash Flow Analysis 

        • Cash flow from Operations is positive for many years and in FY24 it is ₹1122 crore. 
        • The Company has purchased fixed assets worth ₹786 crore in FY24, shows a great sign of expansion. 
        • Max Healthcare has now started paying dividends to its shareholders as it has now enough cash reserves. 
        State Bank of India Ltd
        State Bank of India Ltd: Leading the Way in Banking Innovation and Growth

        Company Overview 

        State Bank of India: A Leading Multinational Banking Institution 

        Established on July 1, 1955, following the nationalization of the Imperial Bank of India, the State Bank of India (SBI) is India’s largest multinational public sector bank, headquartered in Mumbai. Formed with the Reserve Bank of India initially acquiring a 60% stake, SBI has grown into a cornerstone of the Indian financial system. 

        SBI offers a comprehensive range of financial solutions through four primary segments: Treasury, Corporate/Wholesale Banking, Retail Banking, and Other Banking Business. Its extensive network, consisting of over 22,000 branches across India and 227 international offices in 30 countries, supports global financial operations from hubs like New York, Tokyo, and London. As a leader in digital innovation, SBI has introduced initiatives like SBI e-tax for online tax payments and the Virtual Debit Card, enhancing customer security and convenience. 

        The bank has experienced significant growth and expansion through strategic acquisitions, notably the 2017 merger with five associate banks and the Bharatiya Mahila Bank, which solidified its domestic dominance. Internationally, SBI has forged global collaborations, including a Payments Bank partnership with Reliance Industries and ventures with Visa and Elavon for merchant acquiring services. Its subsidiaries, such as SBI Life Insurance, a joint venture with Cardif S.A., and SBI Funds, recognized as ‘Mutual Fund of the Year,’ underscore its excellence in insurance and asset management. 

        SBI actively supports national development initiatives through specialized products like the Defence Salary Package and senior citizen loans. By leveraging technology-driven services, it ensures seamless financial solutions for customers across both urban and rural areas. With its strong domestic foundation and growing international presence, SBI continues to cement its role as a leader in the global banking sector. 

        Returns Summary 

        YTD 1 Month 6 Month 1 Year 2 Year 3 Year 5 Year 
        33.02% 4.01% -5.72% 49.33% 40.56% 80.46% 154.00% 

        Result Highlights 

        • State Bank of India (SBI) demonstrated a strong performance in Q2FY25, showcasing growth in profitability, business expansion, asset quality, and digital transformation. The bank reported a Net Profit of ₹18,331 crores, reflecting robust earnings. Key profitability metrics like Return on Assets (ROA) at 1.13% and Return on Equity (ROE) at 21.78% for H1FY25 underscore efficient capital utilization, while the Net Interest Margin (NIM) of 3.18% (3.31% domestic) highlights sustainable profitability. 
        • SBI’s business growth remained impressive, with deposits crossing ₹51 trillion, up 9.13% YoY, and advances exceeding ₹39 trillion, registering a 14.93% YoY growth. This reflects balanced expansion across deposits and credit segments, positioning SBI for competitive market share growth. Asset quality improved significantly, with Gross NPA at 2.13% and Net NPA at 0.53%, supported by a Provision Coverage Ratio (PCR) of 75.66%, rising to 92.21% when including AUCA. Additionally, the bank maintained conservative provisioning, setting aside ₹31,084 crores, equivalent to 153% of Net NPAs, ensuring resilience against potential losses. 
        • SBI’s digital transformation continues to lead, with >98% of transactions via alternate channels and over 8.13 crore users on its YONO app. Notably, 61% of savings accounts were opened digitally in Q2FY25, highlighting the platform’s pivotal role in customer acquisition and engagement. The bank’s liability franchise benefits from its 22% market share in deposits, with 10.05% YoY growth in current account balances, and a credit-to-deposit ratio of 67.87%, reflecting healthy lending activity. 
        • To support future growth, the Central Board approved raising up to ₹20,000 crores in long-term bonds in FY25. This capital infusion, through public or private placement, will enhance the bank’s capital base, supporting its strategic goals of credit expansion and financial stability, while sustaining a balanced credit-to-deposit ratio. These initiatives position SBI for stable, long-term growth in a competitive banking landscape. 

        Shareholding Pattern 

        Return Comparison with Peers 

        Company ROCE 6 Months 1 Year 3 Year 5 Years 
        State Bank of India 6.16% 4.53% 43.59% 21.75% 20.49% 
        Bank of Baroda 6.33% -5.34% 21.77% 42.16% 20.01% 
        Punjab National Bank 5.46% -12.86% 28.92% 41.02% 11.63% 
        IOB 5.41% -18.30% 32.48% 37.16% 39.38% 
        Union Bank of India 6.55% -12.79% 10.39% 39.99% 16.74% 
        Canara Bank 6.63% -10.92% 23.11% 36.54% 19.29% 
        Indian Bank 5.92% 6.88% 41.61% 59.60% 36.32% 

        SBI Outlook and Contribution to Industry 

        State Bank of India (SBI) stands as a cornerstone of the Indian banking sector, with a ₹52 lakh crore balance sheet and a 22% market share in deposits. It dominates segments like home loans (26.5%) and auto loans (19.8%), supported by its 22,000 domestic branches and operations in 30 countries. SBI’s YONO digital platform drives innovation, handling 66 crore transactions annually, reflecting its leadership in technology-driven banking. 

        The industry outlook for FY25 and beyond is positive, with GDP growth at 6.7% in Q1 FY25, stable global conditions, and robust banking sector projections of 11-12% deposit growth and 12-13% credit growth. SBI leads this momentum, achieving ₹51.17 trillion in deposits and 14.93% credit growth YoY, backed by a strong capital adequacy ratio of 13.76% and high asset quality (Gross NPA at 2.13%). 

        Digital transformation remains a key driver, with over 8 crore digital users and 61% of savings accounts opened digitally in Q2 FY25. Its subsidiaries, such as SBI Life Insurance and SBI Funds, diversify its revenue streams, bolstering financial stability. 

        SBI’s focus on sustainable growth, digital innovation, and robust asset management positions it to capitalize on India’s economic momentum, ensuring long-term leadership and enhanced shareholder value. 

        Balance Sheet Analysis 

        SBI’s balance sheet from FY20 to FY24 shows steady expansion in key financial areas. Deposits grew from ₹32,74,160.63 crores to ₹49,66,537.49 crores, reflecting the bank’s strong customer base and competitive edge in attracting funds. Simultaneously, advances saw a significant rise, from ₹23,74,311.18 crores to ₹37,84,272.67 crores, driven by robust growth across corporate, retail, and MSME sectors. The bank has also shown consistent growth in reserves, increasing from ₹2,50,167.66 crores to ₹4,14,046.71 crores, indicating a strong capital base to support long-term sustainability. Borrowings grew from ₹3,32,900.67 crores to ₹6,39,609.50 crores, signifying  

        SBI’s use of external funding to drive its growth. While this increase reflects SBI’s expansion, effective asset-liability management remains critical. Investments and other assets also rose significantly, supporting SBI’s diversified portfolio. The net block remained stable, reflecting a balanced approach to capital expenditure in fixed assets. With strong asset growth and prudent liability management, SBI is well-positioned for continued market leadership in India’s banking sector, strengthened by its digital transformation through platforms like YONO. 

        Cash Flow Analysis 

        SBI’s cash flow analysis from FY2013 to FY2024 reveals significant fluctuations in its operational, investing, and financing activities. Operating cash flows have been largely positive, with notable spikes in FY2017 (+₹77,406 crores) and FY2022 (+₹89,919 crores), reflecting strong operational efficiency. However, negative flows in FY2018 and FY2023 highlight challenges such as higher provisioning for bad loans. In terms of investing activities, cash flows have consistently been negative, with the bank investing heavily in growth, technology, and acquisitions. A rare positive period in FY2018 likely reflects asset disposals. Financing activities show volatility, with positive cash inflows in certain years due to capital raising and negative flows in others, such as FY2024, likely reflecting debt repayments and a focus on capital strengthening. Despite these fluctuations, SBI has managed to maintain positive net cash flow in key years, ensuring liquidity for growth. Overall, SBI’s cash flow patterns reflect strategic financial management, including debt reduction and investment in expansion, positioning it for long-term growth. 

        Waaree Energies Q2 results
        Waaree Energies Achieves 17% Growth in Q2 FY25 Net Profit, Reaching ₹375.6 Crore

        Company Overview

        Waaree Energies Ltd. is a prominent player in the renewable energy sector and one of India’s largest manufacturers of solar PV modules. Established in 1989, Waaree Energies has built a strong presence in the solar energy value chain, encompassing manufacturing, project development, and EPC (Engineering, Procurement, and Construction) services. Waaree operates state-of-the-art solar PV module manufacturing facilities with a total installed capacity of 12 GW, making it one of the largest in India. Waaree has developed and commissioned over 600 MW of solar power projects and has a pipeline of projects across multiple geographies. In FY23, Waaree Energies achieved a revenue of approximately ₹4,000 crores, demonstrating consistent growth driven by its diversified business segments.

        Industry Outlook

        The Indian solar sector is projected to grow at a CAGR of 15-20% between 2023 and 2030. The solar energy industry in India is at a transformative stage, driven by the government’s ambitious renewable energy targets, favourable policies, and increasing private sector participation. As of 2024, India has achieved over 80 GW of installed solar capacity, making it one of the largest solar markets globally. The country aims to achieve 280 GW of solar capacity by 2030, as part of its broader target of 500 GW from non-fossil fuel sources. The PLI (Production Linked Incentive) Scheme for solar module manufacturing provides financial incentives to enhance domestic production and reduce import dependency, particularly on China. Initiatives like Green Hydrogen Mission and solar-based hybrid projects are creating new opportunities in the solar sector. India is targeting 40 GW of domestic manufacturing capacityby 2026 under the PLI scheme.

        Financial Summary

        INR Cr.Q1 FY25Q2 FY25FY23FY24
        Revenue34093574675111398
        EBITDA5525258361575
        OPM16%15%12%14%
        PBT5314996771734
        Net Profit4013765001274
        NPM11.7%10.5%7.41%11.2%
        EPS19.9913.7324.4962.72
        C&CE3698381317363779

        Business Segments:

        • Solar PV Modules: Waaree Energies is the largest solar module manufacturer in India, with a 12 GW annual production capacity spread across multiple manufacturing facilities. It produces high-efficiency photovoltaic (PV) modules, including monocrystalline, polycrystalline, bifacial, and PERC (Passivized Emitter and Rear Cell) technologies.
        • Power Generation: In Power Generation business segment focuses on producing electricity from diverse sources, including renewable and conventional energy.
        • EPC Contracts: Provides turnkey solar solutions for utility-scale and rooftop projects. Waaree has successfully executed over 1 GW of EPC projects, including utility-scale solar farms and rooftop installations. End-to-end project management, from design and procurement to construction and commissioning.

        Subsidiary Information:

        • Waaree Clean Energy Solutions Private Limited: WCESPL is currently engaged in the business of generating, trading, purchasing, marketing, selling, importing, exporting, producing, manufacturing, transmitting, distributing, supplying, exchanging, or otherwise dealing in all aspects of thermal, hydro, nuclear, solar, wind power and power generated through non-conventional / renewable energy sources.
        • Waaree Power Pvt Ltd: WPPL is currently engaged in the business of carrying out the business of generating, trading, purchasing, marketing, selling, importing, exporting, producing, manufacturing, transmitting, distributing, supplying, exchanging or otherwise dealing in all aspects of thermal, hydro, nuclear, solar, wind power and power generated through non-conventional / renewable energy sources.
        • Waaneep Power Pvt Ltd: WSPL One is currently engaged in the business of generating, trading, purchasing, marketing, selling, importing, exporting, producing, manufacturing, transmitting, distributing, supplying, exchanging, or otherwise dealing in all aspects of thermal, hydro, nuclear, solar, wind power and power generated through non-conventional / renewable energy sources.
        • Sangam Solar One Power Pvt Ltd: SSPL One is currently engaged in the business of generating, trading, purchasing, marketing, selling, importing, exporting, producing, manufacturing, transmitting, distributing, supplying, exchanging, or otherwise dealing in all aspects of thermal, hydro, nuclear, solar, wind power and power generated through non-conventional / renewable energy sources.
        • Waaree Renewables Technologies Ltd: WRTL is currently engaged in the business of generating, trading, purchasing, marketing, selling, importing, exporting, producing, transmitting, distributing, supplying, exchanging or otherwise dealing in all aspects of thermal, hydro, nuclear, solar, wind power and power generated through non-conventional / renewal energy sources.

        Q2 FY25 & Business Highlights

        • Revenue of ₹3574 crore in Q2 FY25 down by 1.05% YoY from ₹3105 crore in Q2 FY24.
        • EBITDA of ₹525 crore in this quarter at a margin of 15% compared to 14% in Q2 FY24.
        • Profit of ₹376 crore in this quarter compared to a ₹321 crore profit in Q2 FY24.
        • Capex of 5.4GW Cell Mfg. expected to be operational by FY25, 1.6GW Module Mfg. in USA expected to be operational by FY25.
        • The current order book for the Company stands at approx. 20GW, and presently has 13.3 GW capacities. It has 5.4 GW Cell Manufacturing Facility at Chikli, 6 GW integrated facility at Odisha. And it has production volume of 3.3GW.
        • The Solar and Batteries cost has been declined by almost 80% from 2012 till now.
        • The order book as per geography is 27.5% domestic and 72.5% overseas. And till now, Pan India it has total 372 franchisees.

        SWOT Analysis

        Strengths:

        1. Market Leadership: A dominant position in the industry ensures competitive advantage and strong market share.
        2. Technological Edge: Advanced technologies provide an edge over competitors and drive innovation.
        3. Strong Brand Presence: A well-established brand fosters customer trust and loyalty.
        4. Policy Support: Favorable government policies and incentives promote growth and stability.

        Weaknesses:

        1. High Dependency on Imports: Reliance on imported components increases vulnerability to supply chain disruptions.
        2. Limited Product Diversification: A narrow product portfolio limits the ability to tap into diverse customer needs.
        3. Capital-Intensive Operations: High operational costs can strain resources and profitability.
        4. Intense Competition: Fierce market competition pressures pricing and margins.

        Opportunities:

        1. Rising Solar Demand: Increasing adoption of renewable energy drives growth potential.
        2. Energy Storage Solutions: Expanding into storage technology complements solar offerings.
        3. Global Expansion: Entering international markets opens new revenue streams.
        4. Backward Integration: Controlling supply chains enhances efficiency and cost management.

        Threats:

        1. Regulatory and Policy Risks: Changes in regulations or government policies can impact operations.
        2. Price Volatility: Fluctuations in raw material costs affect pricing and profitability.
        3. Global Trade Wars: Tariffs and trade restrictions disrupt supply chains and market access.
        4. Economic Uncertainty: Economic slowdowns or instability could hinder growth prospects.
        Garuda Construction and Engineering IPO: Everything You Need to Know

        Garuda Construction and Engineering Limited is opening its doors to public investment with an IPO worth ₹264.10 crores. This offering consists of a fresh issue of 1.83 crore shares aggregating ₹173.85 crores and an offer for sale of 0.95 crore shares worth ₹90.25 crores. Mark your calendars—this IPO is open for subscription from October 8, 2024, to October 10, 2024, with the tentative listing date on BSE and NSE set for October 15, 2024.

        Key Dates to Remember:

        • IPO Open Date: October 8, 2024
        • IPO Close Date: October 10, 2024
        • Allotment Finalization: October 11, 2024
        • Listing Date: October 15, 2024

        Price Band and Lot Size: The IPO price is set at ₹92-₹95 per share, with a minimum lot size of 157 shares. Retail investors can start with an investment of ₹14,915. For high-net-worth investors (HNIs), the minimum investment goes up to ₹208,810 for 14 lots.

        Company Overview: Founded in 2010, Garuda Construction and Engineering Limited specializes in residential, commercial, industrial, and infrastructure projects. Their portfolio spans across residential/commercial buildings, infrastructure, and hospitality projects. The company’s focus on mechanical, electrical, and plumbing (MEP) services, as well as its expertise in project management, highlights its strong market positioning.

        With a growing order book of ₹1,40,827.44 crore as of September 2024, Garuda is setting the stage for continued growth. Their projects spread across regions like MMR, Karnataka, and Rajasthan, showcasing their nationwide presence.

        Financial Overview: Garuda has seen fluctuations in its financial performance, with revenue from operations recorded at ₹1,187.50 crores for the period ending April 30, 2024. Despite a slight decline in profit after tax from ₹40.8 crores in FY23 to ₹36.44 crores in FY24, the company’s robust order book and strong execution capabilities suggest long-term potential.

        Key Performance Indicators (FY24):

        • ROE: 36.14%
        • ROCE: 46.69%
        • PAT Margin: 23.63%
        • Market Cap: ₹883.9 crores

        IPO Objectives: The funds raised will primarily support:

        1. Working capital requirements
        2. General corporate expenses
        3. Potential inorganic acquisitions

        Subscription Status: As of October 8, 2024 (Day 1), the IPO had been subscribed 0.68 times. The retail portion saw strong interest with a subscription of 1.25 times, while the QIB category is yet to attract bids.

        Should You Invest? While Garuda boasts a strong portfolio and a promising pipeline of projects, some concerns linger regarding its financial volatility. Their previous IPO attempt by a group company, PKH Ventures, was withdrawn due to a tepid market response. Dilip Davda, a market expert, advises caution with this IPO, categorizing it as a “High Risk/Low Return” opportunity due to aggressive pricing.

        Final Thoughts: Garuda Construction and Engineering presents an exciting opportunity for investors seeking exposure to the construction sector. With a well-established presence in the market and a robust order pipeline, the company is set for growth. However, the cautious financial outlook and pricing concerns should be weighed carefully before investing.

        Garuda Construction and Engineering IPO Review (Avoid)
        Dilip Davda recommends avoiding this IPO due to the company’s inconsistent financial performance and high trade receivables compared to revenue. A related group company, PKH Ventures, withdrew its IPO in 2023 due to poor market response. Despite holding over ₹1,400 crore in orders, the issue is aggressively priced based on FY25 earnings, making it a high-risk, low-return investment.