News Overview

TCS’ commentary reaffirms analysts of IIFL Capital Services view of only gradual recovery in revenue growth as project completions and lack of new ramp ups beyond large deals weigh on growth. Analysts of IIFL Capital Services largely maintain their EPS/TP, pegged at 25x 2YF EPS, and forecast 8%/12% USD revenue/EPS Cagr over FY24-26. Maintain ADD.

During the fourth quarter, operating margins increased 150 basis points to 26%, while net margins climbed 100 basis points to 20.3%.

Ajay Bijli, Managing Director of PVR Inox, stated that the South market accounts for 33% of their portfolio, with plans to open 40% of new screens in the region in FY25.

In the 5 weeks prior to the current week, the start-up collections were to the tune of #152 Million, $243 Million, $205 Million, $226 Million, and $150 Million. In the latest week to April 12, 2024, start-ups raised $105 Million across 21 start-up deals, with Sprinto and Neysa dominating the funding story in the week.

Today, manufacturing contributes about 15% of GDP and that must transition to over 20% of GDP if the Indian economy has to transition to $5 Trillion economy in 4 years and $10 Trillion in the next 10 years. Between FY23 and FY30, India’s nominal GDP is expected to more than double to $7 Trillion, while the manufacturing GVA is expected to grow nearly 3-fold.

The scheme if extended for FY25, apart from gas IPPs, can also benefit gas importing / trading companies; assuming PLFs to increase to 30% (vs 14% in FY24), India would need to import additional ~5m MT LNG (25% more); GAIL (transmission + trading), PLNG (imports/trade) can materially gain from such imports; for every 1m MT incremental LNG imported, GAIL/PLNG may see 5-10% EPS upgrade; IEX may also gain from higher exchange volumes.

Bandhan Mutual Fund is launching NFO under its “Thematic Fund”, named as Bandhan Innovation Fund. The open ended fund aims to generate long-term capital appreciation by investing predominantly in equity and equity-related instruments of companies following innovation theme.

Among the affected stocks were Balrampur Chini Mills, GNFC, Hindustan Copper, Idea, India Cements, Metropolis Healthcare, National Aluminium Company, Piramal Enterprises, and ZEEL.

In India, petrol and diesel pricing is influenced by factors such as freight charges, value-added tax (VAT), and local taxes.

Unlike the US, which consumes most of the oil it churns out, countries like Saudi Arabia, Iraq, Iran, and UAE are predominantly exporters and hence have a huge swing impact on global oil prices. The immediately impact will be the spreading of the conflict to the Arab Peninsula and to the Strait of Hormuz, a key conduit for the Asian oil and gas trade. Also, the Red Sea will continue to be point of conflict, forcing ships through the circuitous Horn of Africa route. That would obviously mean higher freight rates and higher insurance costs.