Latest news with #EquirusSecurities
Time of India
04-07-2025
- Business
- Time of India
Deposits outpace loans at HDFC Bank, a positive indicator: Analysts
MUMBAI: Persistently robust growth in deposits ahead of credit disbursements, analysts believe, will likely help HDFC Bank match the pace of business expansion for the broader banking industry this fiscal after the merger with HDFC left the country's most valued lender a relative straggler for a couple of years. Provisional business data released by HDFC Bank on Friday showed that gross advances at the end of the first quarter ended June increased 7% to Rs 26.53 lakh crore, from Rs 24.86 lakh crore a year earlier. Loan growth is still slower than the system-level growth of above 9%. But the bank's year-on-year deposit growth at 16% outpaced its credit growth for the third successive quarter, indicating a return to normalcy. Total deposits at the end of June stood at Rs 27.64 lakh crore up 16% over the Rs 23.79 lakh crore a year ago and at more than double the rate of credit growth. This is a change from the fiscal year ended March 2024, post the acquisition of its parent in July 2023, when advances grew at 54% outstripped deposits growth of 26%, exposing the bank to an asset-liability mismatch. Analysts say those concerns have now abated. Rohan Mandora , analyst at Equirus Securities , said while the bank is still some distance away from the historical growth rates of 1.5 times the broader banking industry, one can expect it to match system-level growth starting this fiscal year and have a better hold on its margins. "HDFC Bank has been aggressive in cutting term deposit rates in the first quarter and has brought it in line with large private peers. Additionally, quarterly average CASA (current and savings accounts) growth has been much better in the first quarter. We thus believe that improvement in the incremental cost of funds for HDFC would be better than peers. They additionally have levers on loan mix/ liability mix change. We expect HDFC to have lower NIM (net interest margin) compression than larger private banks," Mandora said in a note. HDFC Bank's average CASA deposits were Rs 8.60 lakh crore at the end of June 2025, up 6% over Rs 8.10 lakh crore a year ago. Total CASA deposits increased 9% to Rs 9.37 lakh crore as of June 2025, but were lower by around 1% compared to the Rs 9.44 lakh crore reported at the end of March 2025. Total term deposits at Rs 18.27 lakh crore at the end of June 2025 were up 21%.
Entrepreneur
02-07-2025
- Business
- Entrepreneur
Torrent Pharma to Acquire Controlling Stake in JB Chemicals in INR 266 Billion Deal
The acquisition involves Torrent Pharma buying a 46.39 per cent stake from global investment firm KKR and an additional 2.8 per cent from JBCP employees, both at INR 1,600 per share You're reading Entrepreneur India, an international franchise of Entrepreneur Media. Torrent Pharmaceuticals has entered into definitive agreements to acquire a controlling 49.2 per cent stake in JB Chemicals & Pharmaceuticals (JBCP) for Rs 126.4 billion. The deal, structured in phases and inclusive of a share swap for the remaining stake, places the enterprise value of JBCP at INR 266.3 billion, adjusted for FY25 net cash. The development was announced in a press release issued by Equirus Securities. The acquisition involves Torrent Pharma buying a 46.39 per cent stake from global investment firm KKR and an additional 2.8 per cent from JBCP employees, both at INR 1,600 per share. Following this, Torrent will extend a mandatory open offer to public shareholders for up to 26 per cent at INR 1,639 per share. The second phase involves merging JBCP into Torrent, offering 51 Torrent shares for every 100 JBCP shares, valuing the remaining 50.8 per cent at INR 140.4 billion. The transaction is expected to conclude within 15–16 months, subject to regulatory approvals including the Competition Commission of India, anticipated within six months. Once completed, the deal will make Torrent the fifth-largest pharma company in India by revenue. JBCP draws nearly 80 per cent of its domestic revenue from gastrointestinal and cardiac therapies. Torrent anticipates procurement and distribution efficiencies in the near term, along with field-force optimization. Longer-term revenue gains are expected from broader prescription reach, deeper penetration in international markets, and scaling of JBCP's acute, ophthalmology, and CDMO segments. The combined entity is projected to deliver margin gains of 350–400 basis points over the next three years. While the deal is likely to be earnings dilutive in the first year, Torrent expects to break even by FY27 and reach EPS accretion by FY28. Return on capital employed (ROCE) is projected to return to pre-deal levels of 28 per cent by the same year, supported by operational synergies. Equirus estimates a payback period of 14–15 years and sees the company's leverage easing within four to five years post-deal. The company remains confident about navigating regulatory hurdles, although some divestments may be necessary to satisfy antitrust requirements. This acquisition marks Torrent's strategic push to solidify its position in India while tapping into JBCP's established international footprint in the US, Russia, and South Africa, and entering new therapy areas such as ophthalmology and nephrology.
Mint
06-06-2025
- Business
- Mint
For FMCG Inc., the holy grail of volume growth is in sight
New Delhi: A surge in sales may be around the corner for some of India's leading packaged consumer goods makers, as cheaper inputs and lower import duties craft a perfect recipe for their next stage of growth. Companies and analysts alike said that falling prices of wheat, maize, barley and oils will help expand volumes, in a change from the recent experience of pricier products driving revenue. On 31 May, the government halved the basic customs duty on crude soybean oil, crude palm oil, and crude sunflower oil to 10%, eight months after raising it from nil to 20%. The move had prompted packaged goods makers to hike prices of items like soaps and biscuits to protect their margins. Crude palm oil and its derivatives are widely used across packaged foods, including cookies, cakes, chips, detergents, and soaps. 'The recent 10% point cut in import duties on crude and refined edible oils is expected to provide meaningful cost relief, particularly for palm oil. The correction in palm oil prices is likely to support margins for food and beverage, as well as home and personal care companies," analysts at Equirus Securities said in a report dated 4 June. Companies said that a stable input cost outlook and steadily declining inflation will help them focus on boosting volumes by investing in advertising and brand building. Also read | Shopping online? Your favourite brands may be saving their best for you 'Crude palm oil prices have softened, but some of our other raw materials are still relatively high," said Sunil Agarwal, co-founder and chairman of Joy Personal Care (RSH Global), a maker of moisturizers, face wash, and sunscreen. "Overall, the cost environment looks stable for now, and we don't expect major inflation in the near term—unless there are unexpected global changes. This stability allows us to shift focus from pricing to driving stronger volume growth in FY26," Agarwal added. At 3.16%, India's retail inflation in April rose at its slowest pace in over six years on the back of lower food prices, potentially allowing the central bank to cut its key policy rate for a third successive time to stimulate consumption and spur economic growth. Respondents in a Mint poll of economists and treasury heads expect the Reserve Bank of India's Monetary Policy Committee to reduce the repo rate by 25 basis points to 5.75% on Friday. The country's weather office has predicted plentiful monsoon rains, potentially leading to a bumper harvest and boosting rural incomes, supporting demand for an assortment of fast-moving consumer goods (FMCG). Fewer price changes Bikaner-based packaged foods company Bikaji Foods International Ltd, which went public in November 2022, anticipates "nominal" price increases this fiscal year. Rishabh Jain, chief financial officer, Bikaji Foods International Ltd, said, "While wheat isn't a major component of our input basket, the decline in palm oil prices will certainly contribute to improved margins. Overall, a favourable commodity environment should support better profitability this year." The company's strategy will shift to driving volume growth as commodity prices stabilize, Jain added. "Our focus will be on achieving growth primarily through increased volumes rather than price-led expansion... The easing of commodity prices provides us with the flexibility to invest more in consumer promotions, which will translate into stronger volume growth," he said. Read this | FMCG firms have been hunting for deals. Their appetite is only growing bigger Palm oil accounts for 25-30% of raw material costs for the company. Despite selective price hikes by most FMCG companies in recent quarters, these haven't fully offset cost inflation in categories like dairy, beverages, and confectionery. While the FMCG industry saw an 11% year-on-year value growth in the March quarter (driven by 4.45% volume and 5.6% price increases, as per NielsenIQ), high edible oil prices have kept staples expensive. Consequently, gross margins came under pressure in the March quarter due to costlier inputs like palm oil, tea, coffee, and copra, Nuvama Institutional Equities analysts said. Biscuit maker Parle Products said lower palm oil prices might lead to a halt in price increases during the latter part of FY26. 'We are expecting palm oil prices to come down by ₹13 to ₹14 (per kilo) in cost of palm oil. However, there's some appreciation in the Malaysian ringgit as well. Net-net we will see ₹8—10 reduction in palm oil rates," Mayank Shah, vice-president, Parle Products, said. And this | Marico calls it—India's FMCG sector to rebound this financial year India imports palm oil from Indonesia and Malaysia, the world's largest and second-largest producers of the commodity, respectively. A stronger ringgit makes imports from the southeast Asian nation costlier. If customs duty cuts were not announced, there would have been a round of price hikes towards the third or fourth quarter of the ongoing fiscal year, Shah added. Parle's volumes rose 3-3.5% in FY25, but the company expects them to grow 7-8% this fiscal year. However, key inputs like cocoa, milk, and tea continue to face upward price pressures. Coffee prices, though off recent peaks, remain elevated on a year-on-year basis. Prices of wheat, rice, maize, and barley have softened more recently, with wheat prices down 16% quarter-on-quarter, but up 3% year-on-year; rice prices are down by 1% quarter-on-quarter, and barley by 4% quarter-on-quarter, analysts at Equirus Securities noted. While milk prices remained stable through FY25, early signs of inflation emerged in the March quarter, driven by increased fodder costs and supply constraints. Also read | Q4 earnings watch: Demand slowdown puts FMCG's 'fast-moving' tag to test Prices of groundnut, soybean, and mustard oils have remained largely stable on a quarter-on-quarter basis. Brent crude prices have declined by 21% year-on-year, they said. Edible oil prices AWL Agri Business Ltd, which sells Fortune edible oils, said it is closely monitoring input costs and inventory cycles. The company was earlier called Adani Wilmar. "Once the higher-duty stocks are consumed, we will suitably reduce prices in line with the new duty structure. As always, we remain committed to passing on any sustained benefits in costs to our consumers," Angshu Mallick, chief executive officer and managing director, AWL Agri Business. The edible oil market remains stable, supported by a strong domestic supply environment. The current mustard crop has been robust, with seed production estimated at 108–120 lakh tonnes and high oil content, contributing to overall supply comfort. These factors are expected to support bulk demand and B2B agri-sales in the near term, Mallick said. 'If lower prices sustain, we expect margins to start recovering from Q2FY26," said analysts at Nuvama Institutional Equities. And read | Industry group urges edible oil makers to pass on duty cuts to consumers
Yahoo
19-05-2025
- Business
- Yahoo
India's Protean eGov sinks on ouster from key government project
(Reuters) -Shares of Protean eGov Technologies tumbled 20% on Monday after the company said it was ruled out of bidding for an Indian government project, creating doubt about a service that accounts for nearly half of its revenue. Protean has been managing applications for Permanent Account Numbers, or PAN cards -- used to maintain every taxpayer's record -- since around 2006. It claims roughly 60% market share for the service, which accounts for about half of its revenue. However, Protean said on Sunday that the income tax department has "not considered favourably" the company's bid as a service provider for PAN 2.0, a $168 million project to consolidate multiple platforms and portals, and quicken processing times. Protean's shares slumped a maximum-allowed 20% on Monday, on course for their worst day since listing on the National Stock Exchange in early February this year. The company said it expects no operational impact on its current PAN business of processing and issuing PAN cards. "We have reached out to the tax department to seek further clarity on their stance. As of now, we see limited impact," Managing Director Suresh Sethi said on an investor call. However, Equirus Securities forecast a much bigger hit. "While the impact (this fiscal year) may be muted, we expect a 75%-100% collapse in this revenue stream over the next 2-3 years," Equirus Securities said, downgrading the stock to "sell". "About one-third of the industry's PAN requests currently originate directly from websites of PAN service providers -- volumes that will almost certainly shift to the PAN 2.0 contract winner once it goes live." It was not immediately clear who else bid for the project. ICICI Securities said Protean was considered the leading contender "by a distance" for PAN 2.0 and losing out "creates uncertainty on PAN business outlook over (the) medium term." ($1 = 85.3330 Indian rupees) Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Reuters
19-05-2025
- Business
- Reuters
India's Protean eGov sinks on ouster from key government project
May 19 (Reuters) - Shares of Protean eGov Technologies ( opens new tab tumbled 20% on Monday after the company said it was ruled out of bidding for an Indian government project, creating doubt about a service that accounts for nearly half of its revenue. Protean has been managing applications for Permanent Account Numbers, or PAN cards -- used to maintain every taxpayer's record -- since around 2006. It claims roughly 60% market share for the service, which accounts for about half of its revenue. However, Protean said on Sunday that the income tax department has "not considered favourably" the company's bid as a service provider for PAN 2.0, a $168 million project to consolidate multiple platforms and portals, and quicken processing times. Protean's shares slumped a maximum-allowed 20% on Monday, on course for their worst day since listing on the National Stock Exchange in early February this year. The company said it expects no operational impact on its current PAN business of processing and issuing PAN cards. "We have reached out to the tax department to seek further clarity on their stance. As of now, we see limited impact," Managing Director Suresh Sethi said on an investor call. However, Equirus Securities forecast a much bigger hit. "While the impact (this fiscal year) may be muted, we expect a 75%-100% collapse in this revenue stream over the next 2-3 years," Equirus Securities said, downgrading the stock to "sell". "About one-third of the industry's PAN requests currently originate directly from websites of PAN service providers -- volumes that will almost certainly shift to the PAN 2.0 contract winner once it goes live." It was not immediately clear who else bid for the project. ICICI Securities said Protean was considered the leading contender "by a distance" for PAN 2.0 and losing out "creates uncertainty on PAN business outlook over (the) medium term." ($1 = 85.3330 Indian rupees)
