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Business Times
16 hours ago
- Business
- Business Times
Why Buldak ramen is an US$8 billion brand
When it comes to instant noodles, there's no Korean discount. Only a Korean premium. Samyang Foods, the manufacturer of Buldak ramen, has gained 93 per cent this year. Trading at 26 times forward earnings, it boasts an US$8.1 billion market cap, as much as bigger rivals Japan's Nissin Foods Holdings and Korea's Nongshim combined. This rally has also made chief executive Kim Jung Soo, who married into a conglomerate family and turned around the instant-noodle company after it declared bankruptcy in the late 1990s, a rare billionaire in her own right in the country's male-dominated business world. Not for the faint-hearted Buldak, which translates to 'fire chicken' in Korean, is not for the faint-hearted. With its debut in 2012, Samyang introduced a level of spice previously unseen in the instant ramen market. It has roughly the same heat level as jalapeno peppers. Last year, Denmark briefly recalled the fiery ramen for being too spicy. Perhaps because of its 'seriously extreme spice', Buldak has become an object of fascination for social media influencers who might enjoy truth-or-dare antics. The carbonara version, in particular, resembles the boxed macaroni and cheese Americans grew up with – with a kick. In May, the number of TikTok hashtags related to Buldak surged 250 per cent from last year, according to CLSA, a brokerage. The keyword leaps up on Google trends, too. As these ramen packs go viral online, they fly off supermarket shelves. In the first quarter, revenue in the US jumped 20 per cent quarter on quarter, even as sales at Walmart declined slightly due to a Buldak Carbonara shortage. A NEWSLETTER FOR YOU Friday, 3 pm Thrive Money, career and life hacks to help young adults stay ahead of the curve. Sign Up Sign Up This is nonetheless music to investors' ears: Unrequited love can be a beautiful thing. Upon the completion of a second plant in Miryang in June, Samyang will soon be able to ramp up shipments to major distributors including Costco Wholesale. By 2030, Samyang's market share in the US can double from 8.1 per cent in 2024, according to CLSA estimates. In many ways, there are parallels between Samyang and China's Pop Mart International Group, the maker of Labubu, an elf-like plush toy that has become a global sensation. With US$45 billion market cap, the toy maker is worth more than twice as much as Sanrio and Mattel combined, owners of long-time favourites Hello Kitty and Barbie. A man walks with two Labubu plush toys of Pop Mart hanging from his backpack straps in Shanghai. PHOTO: AFP These products are not for everyone. With pointy ears and nine serrated teeth, Labubu has a weird look, which only some consumers find cute, while others scratch their head and puzzle over its stardom. Existing outside the mainstream, both generate conversation and attract eyeballs. They are designed to go viral. Adventurous young Americans Investors are also betting that unlike older generations, young Americans have the adventurous spirit for something different. These days, people are getting hooked on Korean specialty grocery chain H Mart, quite a cultural shift considering cucumbers were a new vegetable for McDonald's US menu just over a decade ago. And the youth are friendlier to China than their parents. IShowSpeed, a streamer with 38 million followers, certainly enjoyed Chinese cars and robots during his two-week trip in the spring. As for US President Donald Trump's trade policies? Investors are not at all worried, seeing that both brands are tariff-proof. In the US, eating out has become an expensive endeavour. A meal at a fast-food restaurant can easily set you back US$10. Instead, staying at home with a bowl of Buldak ramen, which will cost just over US$2 even with the incremental 25 per cent duty Trump plans to impose on South Korean products, can be equally satisfying. As for Labubu, good luck getting your hands on them at all. They are sold out at Pop Mart's retail stores worldwide. In a year's time, Gen Z and influencers might have moved on to something different. But for now, investors are happy to reward Samyang and Pop Mart with outsized valuation premium. They know that despite Trump's protectionism, young people are interested in exotic tastes and aesthetics, and that's worth billions. BLOOMBERG
CNBC
a day ago
- Business
- CNBC
CLSA on India IT earnings: Tariff uncertainty will not go away in the near future
Sumeet Jain, CLSA's senior research analyst, discusses the upcoming earnings season for Indian IT companies. He warns that TCS' earnings print was a "clear reflection" that generative AI will not bring about non-linear growth for IT service companies.
Economic Times
02-07-2025
- Business
- Economic Times
4 reasons why Reliance Industries shares could rally up to 18%
Shares of Reliance Industries Ltd (RIL), India's most valued company, could surge as much as 18% from current levels, driven by strong prospects in its new energy ventures, an expected rebound across key business verticals, and bullish technical signals. ADVERTISEMENT Analysts at brokerages including Nuvama and CLSA have cited multiple tailwinds that may power the next leg of the stock's rally, with target prices ranging from Rs 1,650 to as high as Rs 1,801. The stock was trading at Rs 1,518.65 on the BSE on Wednesday, July 2, down 0.6%. While RIL shares have underperformed over the last one year, falling 2.7%, they have rebounded smartly in recent months, gaining 24.4% in the last six months, 21.2% in the last three months, and 4.7% in the past week alone. Nuvama has assigned the highest Street target of Rs 1,801 for Reliance, citing a potential re-rating similar to the one seen after the 2017 Jio launch. The firm's optimism stems from RIL's aggressive push in the New Energy space, particularly in solar its recent analyst meeting, RIL announced the operationalisation of its first 1GW Heterojunction Technology (HJT) module manufacturing line, which will eventually scale to a fully integrated 10GW capacity by early calendar year 2026. Nuvama's channel checks suggest RIL has already begun offering these modules in the domestic market, even before its power generation arm goes live."RIL's modules business (20GW capacity) yields an EV of $20bn, which could trigger a valuation re-rating for RIL—similar to the trend seen post-RJIO's launch in 2017. RIL's New Energy rollout shall not only add 50%-plus to PAT, but also rerate valuations, including the O2C business given its net zero-carbon target by 2035," said Nuvama analysts Jal Irani and others. ADVERTISEMENT The brokerage estimates profit after tax (PAT) from the New Energy segment, including modules and power, to grow from Rs 20 billion in FY27 to Rs 114 billion by FY30, a compound annual growth rate of 140% over FY26–30. The share of New Energy in total PAT could hit 9% by FY30 under conservative assumptions, with a faster ramp-up potentially delivering further upside. On the charts, RIL is showing strong bullish undertones. The stock is currently trading above all its key simple moving averages — 5-day, 10-day, 20-day, 30-day, 50-day, 100-day, 150-day, and 200-day — suggesting strength across both short-term and long-term time frames. ADVERTISEMENT Momentum indicators support this view. The Relative Strength Index (RSI) stands at 70.6, in overbought territory, which typically signals strong buying pressure, albeit with a possibility of a short-term pullback. The Moving Average Convergence Divergence (MACD) is at 25.6 and remains above both the center and signal lines, further reinforcing the ongoing uptrend. ADVERTISEMENT According to CLSA, Reliance is entering a critical earnings cycle, starting with its first-quarter results (Q1FY26) expected later in July. The brokerage sees this as a turning point following a subdued FY25."Reliance Industries is entering into an exciting period, beginning with its 1QFY26 earnings, where we expect to see notable improvements in KPIs across its key businesses," CLSA analyst Vikash Kumar Jain said, maintaining an 'outperform' rating and a target price of Rs 1,650, implying a 8.6% potential upside. ADVERTISEMENT CLSA believes that last year's drag was primarily due to operational streamlining in retail, which has now concluded. The brokerage expects Reliance Retail to report high-teens EBITDA growth year-on-year from Q1 telecom, Jio added 2.6 million mobile subscribers in April 2025 alone, as per TRAI data. Jain noted that broadband subscriber additions, including AirFiber, could lead to 9–10 million new subscribers in Q1, more than the total 6 million added in all of CLSA's GRM (gross refining margin) marker indicates a quarter-on-quarter gain of $1.1/bbl, which could boost profitability in the Oil-to-Chemicals (O2C) segment. RIL's upcoming annual general meeting, expected in August or September, is likely to be a key event for investors. CLSA believes the AGM could provide updates on a possible Jio IPO, along with developments in the quick commerce, FMCG, and new energy businesses. "Accordingly, watch out for the upcoming AGM in August/September. We are raising the SotP-based target price to Rs 1,801, highest on Street, to factor in the potential for higher-than-than-expected module profits; reiterate 'buy'," Nuvama the 2024 AGM, RIL had announced its ambition to increase the New Energy segment's PAT contribution to over 50% by 2030. Nuvama expects additional New Energy businesses, including a planned 30GWh battery facility, electrolyser manufacturing via a partnership with Nel ASA, and 55 upcoming compressed biogas (CBG) plants, to contribute in a phased manner. While RIL shares have already gained over 25% in 2025 so far, analysts see more room to run, backed by structural growth in green energy, improving fundamentals in retail and telecom, and key catalysts on the horizon. With the highest target at Rs 1,801, the implied upside from current levels stands at nearly 18%, making the stock one to watch in the coming months. Also read | Solar a Jio moment for Mukesh Ambani? Reliance shares get highest target price (Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)
Business Upturn
02-07-2025
- Business
- Business Upturn
CLSA maintains ‘underperform' rating on Asian Paints, cuts target price to Rs 1,966 amid CCI investigation concerns
By Aditya Bhagchandani Published on July 2, 2025, 09:10 IST Shares of Asian Paints remained under pressure after CLSA maintained its 'underperform' rating on the stock with a reduced target price of Rs 1,966 per share. This comes following the Competition Commission of India (CCI) initiating an investigation against the company over alleged abuse of its dominant market position. According to CLSA, the CCI has ordered a detailed probe into Asian Paints' business practices, focusing on its market behavior towards new entrants like Grasim Industries' Birla Opus Paints. The investigation report is expected within 90 days. The brokerage noted that Asian Paints has sought an opportunity from the CCI to present its position on the matter. The company, in its defense, stated that the Indian paint market remains highly competitive with low entry barriers. CLSA highlighted that this complaint reflects the growing competitive intensity in the paints sector. It added that the ongoing scrutiny could increase regulatory pressure on Asian Paints' response strategies toward new market players. The brokerage also flagged that the current CCI order was issued without offering a hearing to Asian Paints, a point the company is likely to contest in future proceedings. At the time of the report, Asian Paints shares were trading at Rs 2,369.50 per share. Disclaimer: The information provided is for informational purposes only and should not be considered financial or investment advice. Stock market investments are subject to market risks. Always conduct your own research or consult a financial advisor before making investment decisions. Author or Business Upturn is not liable for any losses arising from the use of this information. Ahmedabad Plane Crash Aditya Bhagchandani serves as the Senior Editor and Writer at Business Upturn, where he leads coverage across the Business, Finance, Corporate, and Stock Market segments. With a keen eye for detail and a commitment to journalistic integrity, he not only contributes insightful articles but also oversees editorial direction for the reporting team.
Business Upturn
01-07-2025
- Business
- Business Upturn
Stocks to watch on brokerages today, July 1: Polycab, Apollo Hospitals, Reliance Industries, Dixon Technologies and more
By Aman Shukla Published on July 1, 2025, 08:32 IST Leading global brokerages have updated their views on key Indian stocks as of July 1, adjusting their ratings and target prices in response to recent developments and business performance. Here's a summary of the latest brokerage actions: Polycab : Jefferies has maintained its 'Buy' rating with a target price of ₹7,150 per share. Apollo Hospitals : Citi has reiterated its 'Buy' call with a target of ₹8,260, while Morgan Stanley has maintained an 'Overweight' rating with a target price of ₹8,058. DLF : CLSA continues to rate the stock as 'Outperform' with a price target of ₹1,025. Reliance Industries : Nuvama has reaffirmed its 'Buy' rating with a target price of ₹1,801. Torrent Pharmaceuticals : Bank of America has maintained a 'Neutral' view and raised the target price to ₹3,500. Ambuja Cements : Jefferies has kept a 'Buy' rating intact with a price target of ₹700. OnsSource : DAM has initiated coverage with a 'Buy' call and a price target of ₹2,529. Asian Paints : ICICI Securities has upgraded its rating to 'Add' and revised the target price to ₹2,700. Berger Paints : ICICI Securities has also upgraded the stock to 'Add' with a higher target of ₹650. ACC : CLSA has commented on the company's focus on achieving its capacity expansion goal of 140 million tonnes by FY28. Dixon Technologies: Morgan Stanley has downgraded the stock to 'Underweight' with a revised target price of ₹11,563. Disclaimer: The views and recommendations expressed above are those of the respective brokerage firms. They do not represent the views of this publication and are not investment advice. Investors are advised to consult with certified financial advisors before making any investment decisions. Ahmedabad Plane Crash Aman Shukla is a post-graduate in mass communication . A media enthusiast who has a strong hold on communication ,content writing and copy writing. Aman is currently working as journalist at
