- 3 years ago
Trade Talk | Kotak Securities' Purvi Shah helps us understand what's causing the upside in the pharma pack. #BQLive
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00:00 Good morning and thanks so much for tuning in.
00:02 You are watching Trade Talk on Wiki Prime.
00:04 My name is Alex Mathew.
00:06 Happy Friday to you and happy Friday to you, Heeral.
00:09 Good morning, Alex, and wish you the same as well.
00:11 Well, you know, when you look at how the benchmark indices and the equity markets, in fact, in
00:17 India have moved, I guess we spoke about this earlier in the week, that downgrade in the
00:22 US seemed to be the excuse that investors in India needed to press the sell button to
00:28 book a little profit because we were looking a little heated in our markets.
00:32 Absolutely.
00:33 I mean, from a valuation perspective, yes.
00:35 And the markets have been in an overpowered territory, right?
00:38 So that was, there was some trigger that was absolutely needed.
00:42 But what analysts are now pointing towards is that the moment we see this pressure continue
00:47 for a few more sessions, and we hit the previous highs that was 18,887.
00:53 From there, the bounce back that can be seen is going to be spectacular.
00:56 And this is something which we will be able to achieve, say, by Diwali.
01:00 So say October, November is the timeline we should be tracking.
01:03 Very incidentally, yesterday at around this time, we were talking about 17,380 or thereabouts
01:09 levels for the Nifty 50 that Dr. C.K.
01:12 Narayan had pointed out when we had spoken to him day before yesterday.
01:15 18,350.
01:16 So, no, it was 19,380.
01:21 And that was the first swing low that he was talking about.
01:24 And that's exactly almost where the Nifty 50 is currently at.
01:29 And what he had pointed out is that it needs to break that mark decisively for that momentum
01:33 to carry it forward.
01:35 So that's one view.
01:36 The other view is, of course, what you were pointing out is that we will move towards
01:39 that previous high of 18,800 or thereabouts.
01:42 Absolutely.
01:43 And overall, if you see the kind of trend you've been witnessing also in the markets,
01:47 it's three consecutive sessions where we've seen profit booking actually that has come
01:51 in, you know, in markets overall.
01:55 It's really the weakness of the global markets that has actually triggered this kind of selling
01:59 pressure as well and a collapse in the local markets.
02:02 Overall, yes, Nifty is absolutely comfortably trading below the 20-day simple moving average.
02:08 It's interesting to see how the WIX has actually moved from 10.28 to 11.19.
02:14 And we've been talking about the FPI's long shot ratio.
02:16 Now, that has gone below the 50% mark, and this is for the first time since the 12th
02:21 of June, which clearly is indicating that the FPI's are holding more short positions
02:26 versus long positions.
02:28 And the recent weakness that we are seeing in the markets as well is expected to trigger
02:33 liquidation of long positions.
02:35 And the initiation of fresh short positions can actually drag the Nifty lower.
02:40 So the F&O support, the market, the setup in the F&O market is absolutely supporting
02:46 the fact in terms of what analysts are indicating of further pressure going ahead.
02:50 Overall, if you go to see the highest put OI seen at 19,400, whereas the highest call
02:55 OI seen at around 19,500.
02:58 And if you talk about Bank Nifty as well, the next immediate support is coming in at
03:02 around 43,400.
03:04 So the setup is absolutely interesting.
03:07 That sector rotation that's happening is what we need to watch out for because clearly the
03:11 last couple of trading sessions, Alex, we've seen the pharma path that has come to the
03:15 rescue and that's where all the action lies.
03:18 Certainly.
03:19 And it's in focus on account of earnings as well.
03:22 And in fact, that's going to be the highlight of our show this morning as well.
03:26 We're focusing on Lupin and Sun Pharma at the start and we'd also get a perspective
03:30 on the sector as a whole.
03:32 But let's get started with the earnings first.
03:35 Monal is joining in to give you some perspective on those two results.
03:38 One at least is a complete beat, right?
03:40 So what can you tell us about those two?
03:42 Morning, Alex.
03:43 Morning, Hiral.
03:44 So Lupin reported its results last evening and the revenues up 29% to around Rs.4,800
03:52 crores.
03:53 Net profit of Rs.452 crores against an estimated Rs.258 crores.
03:58 Quite a beat on that front.
03:59 EBITDA up 4.22% against the estimated Rs.686 crores.
04:06 It's come to Rs.856 crores.
04:08 Margins at 17.8%.
04:09 Now, there's one thing here.
04:11 There's a milestone payment, which it has received, something that we've spoken about
04:15 on our show yesterday as well on the expectations.
04:18 There's a margin payment.
04:20 There's a one-time milestone payment, which it has received to the extent of Rs.205 crores
04:25 on account of, it's from Abbey, on account of a completion of a phase one of the clinical
04:31 trial.
04:32 Now, that is a one-off event.
04:33 So if you exclude that, Antique Broking believes that the margins have received a push because
04:39 of that, and if you were to exclude that, they'd come down to 14% levels.
04:43 So overall, while it's a beat, again, and it's marginally above estimates, most of the
04:49 estimates, there's a slight bit of softness there because of the one-time payment.
04:52 Also, this time, Lupin saw it getting aided by US launch of its generic version, which
04:58 is under 180 days exclusivity.
05:01 So that's been for Lupin.
05:02 Now, for Sun Pharma, the revenues have been up 11%.
05:08 That's a beat on all fronts like we spoke of.
05:10 Now, a couple of brokerages, especially Systematics, has said that there has been a strong performance
05:17 in the EMs, especially Romania and Brazil, which is one of the new points that came out.
05:23 US performance, of course, has seen a ramp up because of Forever Limit.
05:27 Also, there's strong performance led by lower expenses.
05:31 They're having a great lineup of products in the US.
05:36 So overall, Systematics, however, has downgraded the stock to hold, saying current limitations
05:41 to the upside current valuations.
05:44 Jefferies has maintained its buy rating target price.
05:46 It's revised it upside to Rs.1310 crores.
05:50 Revenues pat beat estimates.
05:53 India Business Group 5%.
05:54 Now, that was slightly softer.
05:57 But however, they're expecting a double-digit revenue growth from FY23 to FY26.
06:01 So they're positive.
06:02 Motilal Roswal is also positive.
06:04 Still progress to drive R&D expense on specialty front.
06:08 And the others are almost similar in terms of niche US pipelines, which is in focus and
06:13 they're expecting a strong beat again.
06:14 That's going to be an interesting one to watch out for as to how both the companies react
06:19 and trade.
06:20 Thank you, Mona, for getting us the details.
06:21 But let's quickly welcome in Purvisha, Deputy VP Fundamental Research at Kotak Securities,
06:27 to decode the pharma sector for us from here on, because the kind of movement and interest
06:32 that we're seeing over the last couple of trading sessions is something which has caught
06:36 everyone's eyes.
06:37 Purvi, good morning and welcome to the show.
06:39 Good morning, Heeral.
06:41 Purvi, my first question coming to you is, clearly it seems that the sector cycle is
06:46 undergoing a reversal, right?
06:49 Does this actually tell you that there is a potential growth opportunity for investors
06:55 from here on?
06:56 So, Heeral, of course, but we would suggest that it's better to be selective because there
07:05 are certain companies who really have a very good pipeline and launches that are planned
07:09 very well.
07:10 So, we can see those growth coming in from this year and next year as well.
07:16 So, Cipla and Sun Pharma happens to be our topic and Cipla, we have a buy rating and
07:22 a fair value is 1230 and Sun Pharma, we have an ad rating and the fair value is 1245.
07:30 But the stocks, we feel the numbers they've posted and the commentary that they've given
07:34 is really positive.
07:36 Interesting.
07:37 Purvi Alex here.
07:39 Over the last few months, at least the headlines that I have been reading and you can correct
07:45 me if I'm wrong, but I'm seeing a lot more, a lot more observations, a lot more inspections
07:51 that are being done by the US FDA and more headlines that are pointing to work that needs
07:57 to be done by Indian pharmaceutical companies to correct certain issues in the manufacturing
08:02 process.
08:03 Is that a significant headwind, according to you, something that could point to a downside
08:08 for some of these names?
08:09 Yes, Alex, on the FDA front, that's a headwind which an investor cannot ignore or avoid because
08:19 that is something that you cannot predict what the outcome of an inspection can be.
08:24 But so far, whatever we've tracked and we've realized over the years that there are managements
08:30 who really understand the intricacies of the inspection as well as compliance levels.
08:37 So some of them have been very successfully clearing them.
08:41 At some plants, of course, we've seen certain issues, but they are being addressed.
08:46 And if we go back, say, three or four years ago, the intensity of the FDA letters was
08:54 much higher.
08:55 I think so on the oral solid dosages, those plants, we feel they have, the Indian companies
09:01 have managed them very well.
09:04 The issues that are coming are at the injectable side, which are supposed to be a little more
09:09 sterile and it's a little difficult given the tropical nature of the country.
09:16 But so far, we've seen many companies have been successfully able to maintain the compliance
09:23 level.
09:24 So I would say at the moment, FDA is not that big a major headwind.
09:32 Hi, Purvi, Mona here.
09:35 I have one question on the recent run up that we've seen.
09:38 What is what has led to it?
09:40 And do you believe that sustainable, at least medium term, there seems to be a lot of talk
09:44 about visibility of earnings.
09:46 So how do you see it in the long term?
09:48 Is it the right time to enter?
09:50 Or it's better to wait right now?
09:52 And you know, we given the earnings, does it mean that people who've missed the cycle
09:56 should not now try to get onto the boat?
09:59 What do you think?
10:02 So I would say do not have that fear of missing out the FOMO.
10:09 The stocks will give you the opportunity to enter at the right point of a time, because
10:13 if you have seen the broader markets as well globally, there are a lot of, you know, events
10:20 that are lined up in the upcoming few months, like 10th August, we have the RBI policy meeting.
10:26 In September, we have FMC meeting.
10:29 So the struggle to, you know, have the interest rate inflation and growth being balanced will
10:34 give you a lot of opportunities in the markets to buy.
10:39 So when it comes to pharma sector and the stocks that we speak of, if you see for the
10:44 last two to three months, the entire sector has moved up quite well.
10:48 Now the reason being that there are two important things that have happened in the Q4.
10:54 Most of the management's have said that, you know, the benefit of the cooling of the raw
10:57 material prices, logistic costs and the power and fuel will help the EBITDA margins in the
11:02 upcoming quarters.
11:03 So that's from Q1.
11:04 So that we have been witnessing in a couple of companies' numbers.
11:08 The other thing that has happened is that the price hike that the companies could take
11:14 in the range of 10 to 12 percent is something that will come from effect in the quarter
11:20 two significantly on the domestic businesses of each of the pharma company.
11:24 So that's again going to drive the growth.
11:26 And the second quarter happens to be a seasonally strong quarter for the domestic businesses.
11:31 So there are a lot of positives that are already built up and because of which you have seen
11:35 that a lot of companies have seen a run up.
11:38 So I would suggest that for some companies, of course, the valuation looks a little expensive.
11:44 So hold on, wait for the correction.
11:47 When there is a correction because of the broader markets, please try to invest again.
11:52 Purvi, my last question coming to you is, we've spoken about where valuations can correct,
11:59 where you see opportunity.
12:01 But from a fundamental perspective, which are the pockets that are expected to be growth
12:07 drivers from a business perspective?
12:10 Because if you talk about the US market, the competitive intensity has gone down.
12:15 With regards to price erosion, that has eased out.
12:18 If you talk about even the CDMO side of the business, you're talking about the supply
12:23 side issues.
12:24 I mean, for you to answer whether that has eased out or not.
12:28 So if you have to look at various pockets, where would the growth opportunities be?
12:33 And in turn, what would you recommend as good buying opportunities?
12:36 So Hiral, clearly the buying pockets or the growth drivers will be domestic business.
12:44 We've been seeing a strong growth of 10 to 11 percent for the Indian pharma market for
12:50 this fiscal year.
12:51 Most of the companies are expected to grow above this IPM growth.
12:56 That's 10 to 11 percent.
12:57 We are seeing a lot of companies reporting a growth of 12 to 15 percent.
13:02 So clearly that's one of the pockets which is likely to grow well for most of the pharma
13:06 companies.
13:07 Like you likely pointed out on the US front, generic pricing erosion, of course, is very
13:15 sticky and it's high for a couple of players and it's not there for certain players.
13:21 Now that depends completely on what is the approval rate that you have and the second
13:26 is the pipeline launches that you have.
13:29 So if you are having these two things in place, I guess you are sorted for the US business
13:35 as well.
13:36 But there are certain companies who have issues at their plants and the newer approvals don't
13:39 come and that's when they face a lot larger pricing erosion.
13:44 So we feel, like I mentioned, our bets in the sector are Cipla followed by Mankind and
13:52 Sun Pharma.
13:53 Fantastic.
13:54 I was just going to ask you to reiterate that.
13:56 So I'm glad that you did.
13:57 Thank you so much for taking the time.
13:59 Pleasure speaking with you, Purvi.
14:00 And I'm sure a lot of our viewers have benefited.
14:04 And Monal as well, thank you so much for joining us and giving us that perspective.
14:08 We are focusing on earnings and continue to do so.
14:12 Dabur is the next counter that we want to focus in on.
14:16 And perhaps to a certain extent, Hiral, the thunder of the earnings got stolen a little
14:20 bit or rather, I should say, the focus of the earnings got shifted to allegations of
14:27 carcinogenic elements in their honey.
14:31 So we'll have to ask Sessa what she has to say about that.
14:33 You know, but that news was not able to really push the stock down in spite of it trading
14:38 under pressure.
14:39 We did see a good recovery that did come in and it was during the day seeing cuts of around
14:42 a percent, percent and a half.
14:44 Yes.
14:45 So and I believe that the company is also clarified on that news item.
14:49 Sessa is joining in to give us some perspective on the numbers and also Sessa to tell us about
14:53 what the company says about Dabur honey.
14:56 What do you have for us?
14:57 Good morning.
14:58 Hi, morning, Alex.
14:59 So, you know, first I'll start with the numbers.
15:00 So, of the 50 analysts tracking the company, we have seen 30 have a buy rating, 14 suggest
15:08 a hold and two of them, they recommend a sell.
15:12 This is according to the Bloomberg data.
15:14 Now, the volume growth has come in at 3%.
15:18 This is lower than expected.
15:20 However, the overall operating performance has been in line.
15:24 Now, the volume growth was mainly impacted because of the lower off-take that we have
15:29 seen in the beverages category because of unseasonal rains and that we had spoken about
15:34 it in the last call as well.
15:37 So, but excluding the beverages category, the analysts felt the volume growth at 5%
15:43 to 6%, which is quite decent.
15:45 Now, coming to loss margins, it has expanded by 74 basis points over the previous year.
15:52 This was due to the softening in input cost inflation and the company has reinvested this
15:57 gain towards higher ads and promotions, which further reinforces Darbar's goal of gaining
16:03 market share across categories, you know, with focus on portfolio expansion to drive
16:09 growth.
16:10 The management has guided for improved loss margins for subsequent quarters.
16:14 They've also guided for a high single digit to low double digit growth for healthcare
16:19 business and they are also targeting a double digit growth in the oral care for FY24.
16:25 The overall CAPEX planned for FY24 is around 400 to 450 crore.
16:31 Now, they're also considering acquiring D2C brands given that they are financially
16:37 worthwhile.
16:38 So, most analysts, you know, they strongly believe in Darbar's potential for healthy
16:42 top line growth.
16:44 Also, this would be driven by a double digit growth in the healthcare as well as their
16:50 personal care businesses.
16:51 However, analysts are pointing towards slowdown in rural demand due to lower government spending
16:58 or a monsoon failure that could impact revenue significantly.
17:02 We need to track this pace.
17:03 Now, on the honey issue, you know, Darbar has clearly mentioned that their honey stands
17:09 for purity and they are in compliance with all the FSSAI norms and manufactured at the
17:19 US FDA facilities.
17:20 So, every batch is tested on 65 parameters on FSSAI.
17:25 So, there's nothing to worry on that front is that what, you know, the Darbar management
17:29 has indicated.
17:30 Thanks, Seysa, for getting us the details.
17:32 An interesting point that you pointed out with regards to where a rural slowdown that
17:37 could be on the cards.
17:39 So that's going to be an important aspect that we could be tracking from here on to
17:42 understand the trend going ahead.
17:45 Thank you so much for getting us the details.
17:46 But moving on, from the consumption pack to the telecom space, you have a Bharti Airtel
17:52 that reported numbers, a slightly mixed set of numbers, concerns coming in in terms of
17:56 the African markets.
17:58 Himansh is standing by to get us more in terms of how the quarter has been.
18:01 Himansh, good morning.
18:02 Hi, good morning, Heerul.
18:03 So Airtel released its results yesterday and they were very highly anticipated ones in
18:09 the backdrop of Jio Bharat launch as well as the regulator releasing the report for
18:13 the month of May.
18:14 Overall, the revenues were largely in line, but the PAT estimates were a miss by largely
18:20 about 41%.
18:22 This was primarily because of the one time foreign exchange loss incurred in the Nigerian
18:27 market to the tune of roughly 3,400 crores.
18:31 It was a result of the currency being devalued in the country following a slew of policies
18:36 rolled out by the new president.
18:39 Airtel's India business continues to be the foundation of its overall business, but the
18:43 company also has its subsidiary in Africa, which operates in various countries in that
18:48 region, along with a strategic partner in Singapore, as well as operations in South
18:52 Asia, all of these which are key in its overall business performance.
18:57 So customer base growth was highest in Africa, noting a 9% uptick over the past year, followed
19:03 by India and then the South Asian market.
19:07 The South Asia mobile service is surprised by showing a growth of almost 20%, but the
19:13 other segments were largely in line with estimates.
19:16 Now speaking about the average revenue per user, which is a very critical measure for
19:21 these telecom companies, Airtel touched the 200 mark, rupees 200 mark for the first time
19:26 since the first quarter of the financial year 2014.
19:30 As per reports, Reliance Jio with the highest subscribers is at 180.5 per user, while Vodafone
19:37 Idea is at a distant 135 per user.
19:40 As per the last, Vodafone Idea's number, as per the last fourth quarter numbers.
19:46 So last year, the management had indicated that in order for the business to be sustainable,
19:50 Airtel would like to attain the rupees 300 revenue per user mark in the coming five years.
19:57 So the margins, speaking of margins, they have noted a gradual improvement over the
20:01 past quarters despite stiff competition on the back of increasing premiumization and
20:05 rural penetration.
20:07 Majority of the customer additions were from the tier 2 and tier 3 segments.
20:12 And now speaking about the segment performance, Airtel business, home business and digital
20:16 TV were largely in line, growing in the range of about 15 to 25% year on year.
20:22 And another key point to remember is that Airtel is looking at debt repayments of around
20:26 30,000 crores in the next 12 months, which is about 36% of their overall total debt outstanding.
20:33 And it's also important to know that it's over double of its cash reserves as of the
20:38 balance reported on March 31st.
20:40 The stock is down 0.73% as of yesterday, but it's up 7% year to date.
20:46 So it'll be interesting to see how Airtel plays along.
20:49 Thanks so much, Neemaj, for bringing us those updates.
20:52 Airtel is one stock to watch out for.
20:54 Aisha is another stock that you want to keep very close watch on because the stock has
20:59 or rather the company has posted quite a set of numbers.
21:02 Vinay is joining in to get us some of those details.
21:04 Vinay, a big beat on the profit front.
21:07 What can you tell us about the fine print?
21:09 Thanks, Alex.
21:11 So the company seems to be growing from strength to strength.
21:14 The net profit in the quarter jumped 50% to 918 crores.
21:19 And remember that this is highest ever quarterly revenue, EBITDA and profit for the company.
21:27 And this is best ever performance by the company for the fourth consecutive quarter.
21:30 So every time they are reporting the numbers for a quarter in the last four quarters, they
21:34 are bettering their record in the last quarter.
21:37 So the Royal Enfield sales grew 22% and the commercial vehicle sales grew 12%.
21:43 So you can see the impact on both EBITDA revenue as well as the net profit.
21:50 The EBITDA margin also surpassed on the upside and the impact of Hunter 350 as was expected
21:57 was not as much because the softening of the commodity prices made up for the margin contraction
22:04 on that front.
22:05 So the interesting part that we were all waiting for, the MD of the company passionately defended
22:13 the brand Royal Enfield saying that they have built a fortress which is not easy to penetrate.
22:19 This seems to be a reply to the comment by Rajiv Bajaj that was saying that if Royal
22:24 Enfield is where the money is, they have no option but to rob the bank.
22:28 So whether the competition will be able to rob the bank, it seems that it will be answered
22:34 in the future.
22:35 Thanks, Vinay, for getting us that perspective.
22:37 That's an interesting one to watch out for from here on.
22:40 Moving on, a lot of other earnings that have been reported.
22:42 I think we're going to quickly take you through all of them.
22:45 Varsha standing by with a list that she's been capturing.
22:48 Varsha.
22:49 Good morning.
22:50 So we've got a number of companies.
22:51 So first is Deepak Nitride.
22:52 So the numbers were below estimates.
22:54 Now the top line performance was impacted due to industry-wide challenges linked to
22:58 inventory destocking and slowdown in EU and other markets.
23:02 Also PAT was further impacted in Q1 due to same again, destocking.
23:06 Now companies actually working on product which will be import substitute products for
23:10 which company has done MOU with government of Gujarat, which will involve capex of around
23:15 5000 crores.
23:16 The next company that we have is Yasho Industries.
23:18 So revenues were down 15% while net profit was also down 23%.
23:22 Though there was volume growth of 6%, but low realization high cost inventory were the
23:26 reasons for the degrowth in revenue.
23:29 Companies Greenfield project in Pakistan is progressing as planned and is expected to
23:33 commence production in early FY25.
23:36 The next company that we have is Radico Khaita.
23:38 Now the company grew about its guidance of 15 to 18% with improvement in sequential margins,
23:44 which has been sustained on year on year.
23:46 Now this was aided by strong efforts on moving on driving premium value growth.
23:51 Price increase received over the last four quarters supported by easing of inflation.
23:55 Now the last company that we have is Venus 5 Centuries.
23:59 Now company has posted really good numbers.
24:01 The revenues were up 58% net profit was up 91%.
24:04 Now the reason for good numbers is the revenues from seamless pipes grew almost 150% year
24:11 on year.
24:12 And also company is tripling its capacity with backward integration for the same.
24:18 Alright, thanks so much Varsha for that.
24:20 Now speaking of earnings, and I'm getting hungry, so I'm thinking of breakfast already
24:26 and we're ordering in so we'll have to figure that out.
24:29 But the stock that you want to watch out for, of course, on that front is also Zomato.
24:33 The fact that it posted profits is something that will be focused on.
24:36 But remember, this is packed profit after tax, operationally still questions about whether
24:41 they're making money.
24:42 So let's go to Mihika.
24:44 Mihika, what can you tell us about the earnings?
24:46 Yes, so Zomato, we Bloomberg estimates in terms of revenue, the consolidated path and
24:51 the EBITDA.
24:52 The EBITDA stood at 48 crores versus the estimate of 180 crores while revenue saw a 70% jump.
24:57 Jefferies maintains a buy rating on Zomato and revises its price target upwards to 130
25:02 considering that the company has achieved a milestone of adjusted EBITDA and consolidated
25:06 path positive way earlier than the guidance.
25:09 Jefferies has put down or put rest to all of its concerns around Zomato's ability to
25:14 make profits.
25:15 Morgan Stanley remains overweight too with a target price of 85 rupees.
25:19 The company is expected to remain positive after a strong quarter for growth and profitably
25:23 says the brokerage.
25:24 This quarter saw a strong performance in co-business.
25:26 However, the quick commerce business disappointed in terms of performance.
25:31 I also have some other stocks that I've been tracking in terms of revenue.
25:34 First, we have Adani Power, which saw a positive double-digit revenue and EBITDA growth.
25:38 The company also recorded a 88% net profit increase and margins also increased by 278
25:44 basis points.
25:45 Then we have Gulf Oil Lubricants, which saw a 14% revenue growth and a 23% net profit
25:51 growth.
25:52 The EBITDA numbers increased, however, the margins decreased to 11.43% from a previous
25:59 12%.
26:00 Then we have Mahanagar Gas, which saw a 5% growth in revenue with net profits up by 98%
26:08 and EBITDA was also up by 82%.
26:10 The margins also increased by 14.27% basis points to 33.9%.
26:16 Then we have KEC International, which saw positive revenue, net profit and EBITDA growth
26:20 and margin improvement.
26:22 The company saw healthy growth in the transmission and distribution and civil businesses.
26:26 The company's order book increased 30% year-on-year to 4,500 crores with order intake that was
26:32 led by railways, civil and transmission and distribution.
26:35 Then we have JM Financials that saw a 35% revenue growth, however, net profits were
26:39 down 11%.
26:40 The net interest margins fell to 6% while the net NPA remained stable at 2.3%.
26:47 The gross loan book was also up 26% to 15,891 crores.
26:53 And lastly, we have LIC Housing Finance that saw both a revenue and net profit growth of
26:57 28% and 43% respectively.
27:00 The interest margins improved to 3.21% from a previous 2.51%.
27:04 And the loan disbursement stood at 10,856 crores this quarter, which is less than the
27:10 one recorded in the European period.
27:12 Thanks, Meeka, for getting us.
27:13 So, it's a whole host of stocks that will be in focus on the back of reviews.
27:18 But you have M&M from the AutoPAC that will be reporting numbers, an interesting one to
27:21 watch out for because in the month of July itself, it's recorded the highest ever sales.
27:27 And you have Temasek, which is now looking to invest in the M&M electric, you know, segment.
27:33 So let's see how that pans out overall.
27:35 But we again have Vinay back with us to take us through the key expectations.
27:39 Vinay, over to you.
27:41 So Bloomberg's consensus estimates suggest that the profit is likely to jump 36% to 1,949
27:48 crores.
27:49 This is mostly on the back of a good, strong auto business, because the auto business,
27:55 the volumes there grew 21% in the quarter, but the tractor sales were down 3%.
28:01 So that could be something that analysts watch out for and investors will watch out for.
28:07 Higher prices, stable commodity prices, and higher scale of operations may have improved
28:12 margins to 13.1% in the quarter from 11.9% last time.
28:17 And the commentary will be awaited on the new investor that is coming for their electric
28:22 vehicle subsidiary, where they will be making SUVs for the future.
28:27 So Singapore-based investment firm Temasek has come in after the British company that
28:32 has invested earlier.
28:34 The valuation with this new investment has jumped 15%.
28:38 And more will be awaited by what the management has to say about the new investment and how
28:44 it will scale up their business in the EV front.
28:47 Thank you.
28:48 Thanks so much, Vinay, for bringing us those details and we'll touch base with you once
28:51 those results are out.
28:53 The other big earnings to watch today, and in fact, it is the headline, State Bank of
28:57 India.
28:58 And I'm sure that a lot of investors will be watching very closely to see what the kind
29:04 of growth is in the loan book, as well as whether or not NIMS are maintained.
29:09 Vishwanath Nair is joining us to give us some perspective there.
29:12 Vishy, good morning.
29:13 What are the key numbers to watch here for SBI?
29:15 Good morning, Alex.
29:16 So as far as SBI is concerned, of course, profitability is a big pointer to look at
29:22 for because over the last fiscal, we've seen net profit hitting record targets every quarter.
29:30 This quarter, again, there's going to be an estimated 146% rise in net profitability.
29:36 Net profit is estimated at about 14,948 crore, according to what Bloomberg analysts have
29:43 estimated.
29:44 It's rising year on year, but there's expected to be a dip quarter on quarter.
29:48 So that will be one thing to watch out for.
29:50 The other thing is, of course, as you said, the loan growth is expected to be 17% growth
29:55 target from the market.
29:57 The bank has been a little more sober, saying that it will probably be in the early teens
30:02 for the full financial year.
30:03 So that's something that we have to watch out for.
30:06 Earnings are likely to decline because deposit repricing takes a little while longer than
30:11 loan repricing does.
30:12 So that will come in during the first quarter and the second quarter, where all the deposits
30:18 get repriced and therefore your NIM starts to shrink a little bit.
30:22 So that's what's expected from SBI for Q1.
30:25 Thank you for getting us the details.
30:27 The stock is down almost around 4% in the last five trading sessions.
30:31 So let's see if the earnings are able to cheer it up as well.
30:34 But moving on, a whole host of other stocks that are in focus in today's session.
30:38 On the back of news, Saloni standing by to get us more Saloni.
30:42 Good morning.
30:43 What do you have?
30:44 First we've got NBCC.
30:45 So the company received an order worth Rs. 301 crore for the construction of a hostel
30:50 cum residential block at the University of Delhi.
30:54 Next we've got Torrent Pharma.
30:55 So the company through its subsidiary Torrent Urja 8 entered into a power transfer agreement
31:01 with subsidiaries of Shahpurji, Palanji and Company for the supply of 142 megawatt solar
31:06 power for its desalination plants in Gujarat.
31:10 The estimated cost for this project is Rs. 700 crores.
31:13 Then we've got SJVN.
31:15 So the company inked an MOU with Sikkim Urja to trade 180 megawatts hydropower from Sikkim
31:21 Urja's 1200 megawatts hydroelectric project in Sikkim to distribution licensees and open
31:29 access consumers.
31:31 Then we have Hatsan Agro Product.
31:33 The company inaugurated its chocolate manufacturing unit with a manufacturing capacity of up to
31:38 7000 kgs of chocolate per day.
31:41 The commercial production went into effect as of yesterday.
31:44 And lastly we've got news on NSDL.
31:46 So NSDL has filed its DRHP for its IPO with SEBI on July 7.
31:51 So SEBI has now put NSDL's proposed IPO in abeyance.
31:55 This is a Rs. 3000 crore IPO and a lot riding on it for institutions like IDBI Bank, Union
32:01 Bank of India, SBI, etc.
32:02 All right.
32:03 Thanks so much for that, Saloni.
32:05 Well, we've clearly got a lot that we've covered over the course of the last half an hour or
32:10 so.
32:11 And there's lots more to talk about over the course of the day.
32:13 You'll find all of that live on BQ Prime.
32:15 So do stay tuned.
32:16 Thanks a lot.
32:25 [BLANK_AUDIO]
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