Aug 30, 2024, 3:33 pm IST
Sector Update: Life insurance | VNB Outlook Steady – Sustained Growth To Drive Further Upside
Raghvesh R of JM Financial Institutional Securities said, “With the notification of revised product regulations by IRDAI on 12th Jun’24, the conversation around life insurance shifted to growth. The industry has shown strong APE growth in CY25, on a YoY basis, and robust growth on a 2 year- CAGR basis. While peers have struggled, our coverage companies have ably managed their VNB margins, through product innovations and targeted sales. With a wider suite of products at their disposal, we believe the insurers can continue to deliver mid-teens growth, and with consistent delivery, command pre-Covid multiples. Indian insurers remain predominantly focused on providing protection embedded in savings products, in-line with market demand, and growth in protection remains prudently conservative. Hike in capital gains tax should support growth in insurance products, which remain tax-exempt below a threshold value of INR 250,000 for ULIPs and INR 0.5mn for traditional products. Meanwhile, the Unified Pension Scheme does not impact annuity TAM substantially. Since our initiation, we have raised growth estimates with consistent delivery and now raise our target multiple for private insurers. We maintain our positive stance on the sector. HDFC Life remains our top pick with the most well-balanced product mix and room for growth from banca and agency channels – value it at 2.9x FY26e EV for a revised Target Price of INR 900. We like SBI Life and IPRU for their brand recall and growth delivery. While we search for sustained delivery across key channels in medium term, their ULIP-led business model has thrived in the current macro, and we continue to see favourable risk-reward. We value SBI Life at 2.5x FY26e for a revised Target Price of INR 2,100 and IPRU at 2.2x FY26e EV for a revised Target Price of INR 850. Meanwhile, LIC has delivered on both growth and product diversification, but with its vast EV of INR 7,273bn (12.4x the largest private player), see its RoEV remain sub-12%, except one-offs. We retain our Target Price of INR 1,300, valuing its core business at 0.9x FY26e EV.”
Aug 30, 2024, 3:18 pm IST
DOMS Industries (DOMS IN) | Increased Focus On Widening Addressable Market
Mehul Desai of JM Financial Institutional Securities said, “DOMS’ superior execution is led by disproportionate focus on innovation and leveraging end-to-end manufacturing capabilities to get the ‘product & pricing right’. This apart, it has used inorganic route to expand TAM (like entry into Pens, Toys, Bags, Paper Stationery) and play across the journey from kid to young adults. However, key challenge for DOMS is to expand distribution reach given that coverage universe for stationery (c.300k of which DOMS reaches c.125k) is quite low vs other consumer categories. Also, low ticket size of stationery products makes it difficult to get shelf space & scale up in non-stationery outlets. Hence, along with widening portfolio basket, it is also essential to scale up distribution and Uniclan acquisition (in babycare which has higher touch points vs stationery) came across as opportunity to build the same. Having said that, in case of earlier acquisitions (Clapjoy, Microwood, Skiddo, Pioneer), DOMS’ innovation/backward integration/brand strength are getting leveraged where it has a proven execution. In case of Uniclan, it is about first scaling up distribution network and then leveraging it for core business. To that extent, scale up here will be a key monitorable in our view. We remain confident on DOMS’ execution capabilities, strengths in core business & initiatives to expand TAM (for eg: launch product with disruptive pricing (Markers, Adhesives, Pens, Geometry Box), co-branding with Clapjoy, launch of Tots range) which along with capacity additions will help it to grow ahead of industry & peers. Any sharp corrections should be used as opportunity to add in the name.”
Aug 30, 2024, 3:02 pm IST
Reliance Industries | AGM takeaways: Reiterates huge growth potential across businesses
Dayanand Mittal of JM Financial Institutional Securities said, “At RIL’s annual general meeting today (AGM statement and PPT link), the company highlighted its target to double Jio and Retail business revenue & EBITDA in the next 3-4 years; this is largely in line with JMFe as we expect Retail business EBITDA to double in 3.5 years and Digital business EBITDA to double in 4 years. Further, the company guided for the New Energy business to become as profitable in the next 5-7 years as the O2C business (O2C business FY24 EBITDA was INR 624bn) – this provides earnings visibility for the New Energy business and could potentially be significantly value accretive. On the Digital business, the company expects 5G penetration to improve and reiterated its ambition to upgrade ~200mn 2G subs and connect 100mn homes & 20mn MSMEs via its FTTH/AirFiber services. Further, it emphasised on RIL Retail’s robust growth outlook driven by its strong omni-channel capabilities and strengthening consumer brand business. The company reiterated its O2C expansion plans for investing in various existing and new petchem chains (at earlier guided capex of INR 750bn). Also, it restated its INR 750bn New Energy capex commitment and project timeline. However, no timeline was shared on potential listing of the Digital and Retail businesses. We maintain BUY (unchanged TP of INR 3,500/share) on RIL as we believe peak capex/net-debt is behind it, and also because the company has industry leading capabilities across businesses to drive robust 16-17% EPS CAGR over the next 3-5 years.”
Aug 30, 2024, 2:39 pm IST
LIC of India Presented The Dividend Cheque of Rs.3662.17 Cr To The Government of India
The Honourable Smt. Nirmala Sitharaman, Union Minister of Finance and Corporate Affairs, received a dividend cheque today from Shri Siddhartha Mohanty, CEO and MD of LIC of India. This amount represents the Government of India's share of the dividend, which was approved by the shareholders at the Annual General Meeting on August 22, 2024. The Government of India received a total of Rs. 6103.62 Crores in dividend payments from LIC for the fiscal year 2023–2024, including an interim dividend of Rs. 2441.45 crores paid on March 1st, 2024. As of March 31, 2024, LIC has amassed about Rs. 52.85 lakh crores in assets, capping 68 illustrious years since its founding. It is still the industry leader in the Indian life insurance sector.
Aug 30, 2024, 2:07 pm IST
Linc Unveils Product Experience Centre at Sector V, Kolkata
Linc, a leading innovator in the writing instrument industry, is excited to announce the launch of its Product Experience Centre. Located on the ground floor of our registered office building in Sector V, Kolkata - a vibrant business district and conveniently close to the large residential area of Salt Lake - this initiative is designed to offer customers a unique, hands-on opportunity to explore our extensive range of writing instruments, stationeries, and allied products. Open for a limited time over the next three months, the centre will serve as a hub for engaging with a diverse consumer base. Visitors can immerse themselves in live demonstrations, participate in interactive sessions, and take advantage of exclusive in-store offers. This initiative underscores our commitment to providing an enriching and interactive customer experience.
Aug 30, 2024, 1:52 pm IST
Aurionpro Payments Goes live As an Online Payment Aggregator At Global Fintech Fest 2024
Aurionpro Payments, a subsidiary of Aurionpro, is excited to announce its go-live as an online payment aggregator, marking a significant milestone in its journey. This achievement follows the recent authorization from the Reserve Bank of India and signifies Aurionpro's strategic entry into the rapidly growing and innovationdriven payments industry. The launch was officially announced at the prestigious Global Fintech Fest 2024 in Mumbai, India, one of the largest fintech gatherings in the world. “We are thrilled to introduce these solutions and capabilities on our AuroPay platform,” said Bal Pangam, CEO of Aurionpro Payments. “By leveraging technology and innovation, we aim to empower businesses with seamless payment processing and other value-added services, including digital onboarding and convenient bill payment solutions.”
Aug 30, 2024, 1:20 pm IST
Zydus Receives Final Approval From USFDA For Scopolamine Transdermal System
Zydus Lifesciences Limited (including its subsidiaries/ affiliates, hereafter referred to as “Zydus”) has received final approval from the United States Food and Drug Administration (USFDA) to market Scopolamine Transdermal System 1 mg/3 days. (USRLD: Transderm Scop Transdermal System ® 1 mg/3 days). This is the fifth ANDA approval for Zydus in the transdermal portfolio, leveraging the group’s strengths in the manufacturing of complex drug device dosage forms. The Scopolamine Transdermal System will be produced at the group’s transdermal manufacturing site at SEZ, Matoda, Ahmedabad. Scopolamine Transdermal System 1 mg/3 days had annual sales of USD .6 mn in the United States (IQVIA MAT June 2024). The group now has 400 approvals and has so far filed over 465* ANDAs since the commencement of the filing process in FY 2003-04.
Aug 30, 2024, 12:48 pm IST
Alfa Transformers Receives Order From TPNODL
Alfa Transformers Ltd (Bhubaneswar plant) has received a purchase order worth of Rs. 1.77 Crore from Tata Power Northen Odisha Distribution Limited (TPNODL). The project consist of Manufacturing and Supply of Design, Manufacturing and Supply of Transformers Bhubaneswar plant for Rs. 1.77 Crores within 120 days from the date of receipt of order.
Aug 30, 2024, 12:22 pm IST
Thyrocare Technologies Limited To Acquire Diagnostic & Pathological Services Business Of Vimta Labs Limited
Thyrocare Technologies Limited enters into a Business Transfer Agreement to acquire diagnostic and pathological services business of Vimta Labs Limited. Thyrocare has signed a Business Transfer Agreement for purchase of the diagnostic and pathological services business of Vimta Labs. Vimta Labs through its diagnostic and pathological services business has recorded a revenue of INR 30 Crores during FY 2024 and INR 7 Crores in Q1 FY 2025. The closing of this transaction is subject to customary conditions precedent. Mr. Rahul Guha, MD & CEO, Thyrocare Technologies Limited says “I am pleased to announce that we are acquiring the diagnostic and pathological services business of Vimta. This strategic move aligns with our growth objectives, allowing Thyrocare to expand its market share, solidify our leadership position in South India, and grow our business with franchisees and hospitals. Additionally, this expansion will enable Thyrocare to leverage the benefits of scale.”
Aug 30, 2024, 12:00 pm IST
Mahindra Group & Sentrycs Team Up To Develop And Provide Anti-Drone Solutions In India
Mahindra Group and Sentrycs Ltd have signed a Non-Binding Memorandum of Understanding (MoU) to explore opportunities for developing and providing ‘differentiated Anti-Drone Solutions’ in India, for civilian and military applications. The MoU relates to the ‘Anti-Drone Systems’ technology space and will focus on the Transfer of Technology (TOT) and manufacturing of radio frequency-based counter-drone solutions under the Government of India’s ‘Make in India’ initiative. The ‘differentiated anti-drone solution’ is an autonomous and integrated system with a command and control (C2) module, and enables detection, tracking, identification and mitigation of incoming drones.
Aug 30, 2024, 11:42 am IST
Gold Rates In India Dip Lower Today
The 24-carat gold price in India for 10 grams is Rs. 73,150/- and Rs. 67,050/- for 10 grams of 22-carat gold. Prices for both pure gold and standard gold have dropped by Rs. 100/- per 10 grams in India Today.
Aug 30, 2024, 11:10 am IST
Zepto Raises USD 340 Million In Fresh Funding, Valuation Rockets To Billion From 3.6 Bn In 2 Months
Indian grocery startup Zepto has secured USD 340 million in fresh funding just two months after its last round. This latest injection of capital, led by General Catalyst, has catapulted the three-year-old company to a valuation of billion, a sharp rise from its .6 billion valuation in June. The recent funding round saw active participation from existing investors, including StepStone, Lightspeed, DST, and Contrary, all of whom increased their stakes in the company.
Aug 30, 2024, 10:46 am IST
Infosys Foundation USA opens Tech Innovation Lab In North Carolina
Infosys Foundation USA, a non-profit organization, today announced the launch of the Tech Innovation Lab at Discovery Place Science in Charlotte, NC. The lab serves as a space for deep learning and exploration through the Infosys Springboard next-generation digital learning platforms offering over 11,000 free courses. Infosys Springboard delivers the latest in technology trends and professional skilling alongside virtual labs, secure assessments, social learning features, gamification and learning analytics, making the tool a crucial next-generation learning platform. Learners have access to extensive learning content including free courses in GenAI and emerging technologies as well as a vast library of educational tools for teaching computer science and maker education.
Aug 30, 2024, 10:44 am IST
Sugar Stocks Rally In Early Trade today
Sugar stocks witnessed a significant surge of around 8% following the government's decision to remove the cap on sugar diversion for ethanol production during the Ethanol Supply Year (ESY) 24-25. Key industry players, including Balrampur Chini, Shree Renuka Sugars, and Dhampur Sugar Mills Ltd., experienced notable gains of 5.5%, 6.22%, and 7.55% respectively.
Aug 30, 2024, 10:08 am IST
GRSE Signs MoU With NHIDCL For Supply Of Double Lane Modular Bridges
Garden Reach Shipbuilders & Engineers Ltd. (GRSE) secured a groundbreaking deal with the National Highway Infrastructure Development Corporation Ltd. (NHIDCL) for the fabrication, supply and launching of Double-Lane Class 70 modular steel & Bailey bridges. The MoU was signed between Dr. Krishan Kumar, IAS, Managing Director, NHIDCL and Cmde PR Hari, IN (Retd.), CMD, GRSE in the august presence of Shri Anshu Manish Khalkho, IDAS, (Director, A&F), NHIDCL and DIG Subrato Ghosh, ICG (Retd.), Director (Personnel), GRSE and other senior officers of GRSE & NHIDCL.
Aug 30, 2024, 9:57 am IST
Nifty Technical Chart
Technically, on the daily scale, the index has crossed the hurdle of its previous all-time high and experienced a breakout of a rounding bottom pattern, indicating strength. Based on this breakout, the index could advance towards the 25,500 levels in the short term. On the downside, the 9-Day Exponential Moving Average (DEMA), positioned near 24,890, will act as immediate support for the Nifty in the short term. As long as the index remains above 24,890, a 'buy on dips' strategy should be adopted, said Hrishikesh Yedve, AVP Technical and Derivatives Research at Asit C. Mehta Investment Interrmediates Ltd.
Aug 30, 2024, 9:57 am IST
Bank Nifty Technical Chart
Technically, on the daily scale, the Bank Nifty has formed a small green candle. Moreover, the index managed to hold above the trend line support and is holding firmly above its 21-DEMA, which is positioned near 50,917 levels. As long as the index stays above 50,900, a 'buy on dips' strategy is advisable. If the index maintains support of 50,900, the rally could continue to 51,800-52,000 levels, said Hrishikesh Yedve, AVP Technical and Derivatives Research at Asit C. Mehta Investment Interrmediates Ltd.
Aug 30, 2024, 9:38 am IST
Market Open On A Positive Note
The Indian benchmark indices opened on a positive note on Friday tracking strong global cues.
Aug 30, 2024, 9:35 am IST
Nifty/Bank Nifty Prediction Today From Hashim Yacoobali, Director of South Gujarat Shares And Sharebrokers Limited
Nifty witnessed huge volatility due to Reliance AGM. As per technicals, Nifty managed to hold support zones of 25003–24980. Fresh supply is possible only below this zone. On upward side 25256 – 25412 is Possible.
Bank nifty is struggling to cross the 51410 mark. Whereas on the downward side, 50900 acts as a major support zone. Bank Nifty is trading at the make-or-break level. Bank Nifty manages to cross 51410 and will see a sharp vertical rally for an upward range of 51912–52222.
Aug 30, 2024, 9:34 am IST
Market Outlook Today By Aditya Gaggar, Director of Progressive Shares
With a strong bullish candle, the Nifty Index has given a convincing close above 25,100 which portrays a continuation of the move and the next potential target comes at 25,370 while the downside seems to be protected at 25,000. From the Energy segment, OMC' stocks look strong (HPCL). With Above The Stomach candlestick pattern, the FMCG sector reversed from its trendline support (Britannia- On the verge of giving a breakout from a Bullish Flag and Pole pattern, ITC- Awaiting a strong close above 510, and HUL- Symmetrical Triangle Breakout). The IT sector is constantly performing as per our expectations and boosting our confidence to remain positive. The Metal sector has formed a potential Hammer candle, activity in today's trade will confirm continuation or reversal of the trend. The PSU Banking segment is making a bullish Flag and Pole formation, breakout is imminent.
Aug 30, 2024, 9:17 am IST
Rupee Vs Dollar
Following up with Asian peers the opening value of the rupee against the US dollar on Friday was 83.83. On Thursday, the rupee strengthened by 10 paise to settle at 83.87 (provisional) versus the US dollar. The rupee fell 4 paise versus the US dollar on Wednesday, closing at 83.97.
Aug 30, 2024, 9:07 am IST
Market Outlook Today By Dr. V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services
The significant feature of the recent trend in the market is the lack of volatility. The market has been steadily climbing up during the last 11 trading sessions with volatility index VIX declining to 13.79. Continuation of accumulation of quality largecaps by the DIIs and HNIs and the FIIs reducing their selling significantly and buying on certain days have contributed to the resilience of the market.
Aug 30, 2024, 8:31 am IST
Indian Stock Market Outlook
The market outlook remains sideways to bullish as the index holds above its 10-day and 20-day EMAs, with a solid base around the 50,800-50,900 levels. The index’s continued Higher-High and Higher-Low structure, along with 51,000 acting as a crucial level on the downside where the aggressive put writers are holding their position, reinforces the validity of a "Buy on Dips" strategy as the index trades within a narrow range. Should the index sustain above 51,400, it could trigger strong bullish momentum, potentially targeting the next upside level of 51,900, leading to short-covering by sellers, commented Dhupesh Dhameja, Technical Analyst, SAMCO Securities.
Aug 30, 2024, 8:30 am IST
Bank Nifty Prediction Today
Despite the lackluster performance, the index continues to trade within a narrow range of 51,400-51,000 over the past four trading days, maintaining a Higher-High and Higher-Low structure on the daily chart. With the Nifty Bank index trading above its 10-day and 20-day Exponential Moving Averages (EMAs) and solid support established around the 50,900 level, where aggressive Put writers have positioned themselves, a "Buy on Dips" strategy remains favorable as buying opportunities emerge from these support zones,” said Dhupesh Dhameja, Technical Analyst, SAMCO Securities.
Aug 30, 2024, 8:30 am IST
Market Outlook Today
“The market outlook has shifted from sideways to bullish, with a "Buy on Dips" strategy recommended. On the 75-minute time frame, Nifty continues to trade within a Higher-High and Higher-Low structure, staying above the key 20-period Exponential Moving Average. The strong close above the consecutive Doji candlestick pattern, coupled with the new all-time high, indicates that bulls are firmly in control. The 25,000 strike Put, where aggressive positions have been taken, continues to provide solid support. As long as the index trades above 24,900, buying will likely emerge at lower levels, with 25,300 being the next potential upside target,” said Dhupesh Dhameja, Technical Analyst, SAMCO Securities.
Aug 30, 2024, 8:30 am IST
Options Market Insights
The options market has maintained its bullish stance for the fourth consecutive day, with more Puts being written than Calls as the index holds above the 25,000 level, with no close below the last ten-day lows. Significant open interest at the 25,100 Put (1.69 crore contracts) and the 25,200 Call (1.72 crore contracts) suggests a tight battle between buyers and sellers. The Put-Call Ratio (PCR) has risen slightly from 1.12 on Wednesday to 1.21, highlighting the dominance of Put writers over the past four trading days. The Max Pain Point at 25,100 marks a crucial level that could influence the index's near-term movement, commented Dhupesh Dhameja, Technical Analyst, SAMCO Securities.
Aug 30, 2024, 8:29 am IST
Nifty Prediction Today
On the 75-minute chart, Nifty continues to exhibit a robust Higher-High and Higher-Low structure, consistently trading above its key 20-period upward-sloping Exponential Moving Averages (EMAs). The 25,000 level has emerged as a strong support, with aggressive Put writers establishing positions, offering robust downside protection. The decisive close above the consecutive Doji candles indicates that the bullish trend is intact, suggesting that buying on dips remains a favorable strategy, said Dhupesh Dhameja, Technical Analyst, SAMCO Securities.
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