Latest news with #ManishChowdhury
Economic Times
4 days ago
- Business
- Economic Times
Can HDB Financial Services maintain its momentum after a strong IPO listing?
Mumbai: HDB Financial Services made its debut Wednesday on bourses at ₹835, a premium of 13% over its issue price of ₹740 on NSE. The stock closed 0.6% higher at ₹840.25. ADVERTISEMENT The IPO comprised a fresh issue of ₹2,500 crore with an offer for sale of ₹10,000 crore by HDFC Bank. HDB Financial Services is the most subscribed billion-dollar IPO since the Zomato issue four years ago, and the largest non-banking financial company (NBFC) IPO so far. Analysts said investors can choose to hold the stock from a long-term view of 2-3 years while fresh investors can wait for dips to buy. "The listing was better than expected primarily due to better market sentiment led by investors relying on HDFC Bank's strong parentage," said Manish Chowdhury, head of research, StoxBox. "The listing gains were capped due to sluggish FY25 performance, especially on margin and asset quality fronts."Investors can choose to hold for a period of one year and fresh investors can wait on sidelines for the quarter results and take cues from the management commentary, he said. "While Bajaj Finance is trading at higher levels compared to HDB Financial Services, the other NBFC players are trading at cheaper valuations," said Chowdhury. ADVERTISEMENT HDB Financial's IPO was subscribed 16.69 times on the final day of bidding on qualified institutional buyers (QIBs) portion was subscribed 55.47 times, while the non-institutional investors (NIIs) or high-net-worth individuals' portion and the retail investors portion were subscribed at 9.99 times and 1.41 times, respectively. ADVERTISEMENT The NBFC's market capitalisation on Wednesday was Rs 69,704.3 crore while the market value of its largest peer, Bajaj Finance stood at Rs 5.73 lakh crore. Analysts said the company's peer Bajaj Finance has been able to maintain high growth and high asset quality which HDB hasn't been able to achieve. 'Investors are advised to exit post listing gains as the company's financials aren't that great relative to its peers,' said Dharmesh Kant, head of research, Cholamandalam Securities. 'While other NBFC stocks are expensive, the relative growth trajectory is also likely to be better which makes them a better bet.' Despite good issue price, HDB Financial Services needs to demonstrate strong growth in consumer finance which makes up almost 24% of its book and remains a grey area for the company,' he said ADVERTISEMENT Kant said investors can wait for a better opportunity to buy HDB Financial services and also for the other NBFCs where the valuations have not cooled off yet. Emkay Global initiated coverage on the stock with a 'Buy' rating and target price of Rs 900-implying an upside potential of 7.11% from Wednesday's closing price. Analysts said investors can hold the stock from a 2-3-year perspective as HDB Financial Services is a structurally constructive bet. 'Despite trading at a discount to Bajaj Finance and Cholamandalam Finance, HDB Financial Services is an upper layer NBFC that offers a well-diversified portfolio and a granular loan book that makes it a long term buy for new investors as well,' Shweta Daptardar, VP — institutional equity research, Elara Securities. ADVERTISEMENT Daptardar said fresh investors can accumulate on dips as no returns are expected on an immediate basis, however, no sizable corrections are likely as higher liquidity and low-interest rate scenarios offer better landscape for NBFCs such as HDB Financial Services. (You can now subscribe to our ETMarkets WhatsApp channel)
Time of India
4 days ago
- Business
- Time of India
Can HDB Financial Services maintain its momentum after a strong IPO listing?
Mumbai: HDB Financial Services made its debut Wednesday on bourses at ₹835, a premium of 13% over its issue price of ₹740 on NSE. The stock closed 0.6% higher at ₹840.25. The IPO comprised a fresh issue of ₹2,500 crore with an offer for sale of ₹10,000 crore by HDFC Bank . HDB Financial Services is the most subscribed billion-dollar IPO since the Zomato issue four years ago, and the largest non-banking financial company (NBFC) IPO so far. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like 17 Foods That Should Never Be Placed in the Refrigerator Car Novels Undo Analysts said investors can choose to hold the stock from a long-term view of 2-3 years while fresh investors can wait for dips to buy. "The listing was better than expected primarily due to better market sentiment led by investors relying on HDFC Bank's strong parentage," said Manish Chowdhury, head of research, StoxBox. "The listing gains were capped due to sluggish FY25 performance, especially on margin and asset quality fronts." Investors can choose to hold for a period of one year and fresh investors can wait on sidelines for the quarter results and take cues from the management commentary, he said. Live Events "While Bajaj Finance is trading at higher levels compared to HDB Financial Services, the other NBFC players are trading at cheaper valuations," said Chowdhury. HDB Financial's IPO was subscribed 16.69 times on the final day of bidding on Friday. The qualified institutional buyers (QIBs) portion was subscribed 55.47 times, while the non-institutional investors (NIIs) or high-net-worth individuals' portion and the retail investors portion were subscribed at 9.99 times and 1.41 times, respectively. The NBFC's market capitalisation on Wednesday was Rs 69,704.3 crore while the market value of its largest peer, Bajaj Finance stood at Rs 5.73 lakh crore. Analysts said the company's peer Bajaj Finance has been able to maintain high growth and high asset quality which HDB hasn't been able to achieve. 'Investors are advised to exit post listing gains as the company's financials aren't that great relative to its peers,' said Dharmesh Kant, head of research, Cholamandalam Securities. 'While other NBFC stocks are expensive, the relative growth trajectory is also likely to be better which makes them a better bet.' Despite good issue price, HDB Financial Services needs to demonstrate strong growth in consumer finance which makes up almost 24% of its book and remains a grey area for the company,' he said Kant said investors can wait for a better opportunity to buy HDB Financial services and also for the other NBFCs where the valuations have not cooled off yet. Emkay Global initiated coverage on the stock with a 'Buy' rating and target price of Rs 900-implying an upside potential of 7.11% from Wednesday's closing price. Analysts said investors can hold the stock from a 2-3-year perspective as HDB Financial Services is a structurally constructive bet. 'Despite trading at a discount to Bajaj Finance and Cholamandalam Finance, HDB Financial Services is an upper layer NBFC that offers a well-diversified portfolio and a granular loan book that makes it a long term buy for new investors as well,' Shweta Daptardar, VP — institutional equity research, Elara Securities. Daptardar said fresh investors can accumulate on dips as no returns are expected on an immediate basis, however, no sizable corrections are likely as higher liquidity and low-interest rate scenarios offer better landscape for NBFCs such as HDB Financial Services.
Time of India
20-05-2025
- Business
- Time of India
Protean eGov Technologies: Protean eGov Technologies shares plunge 20% after downgrade amid PAN 2.0 project withdrawal
Mumbai: Shares of Protean eGov Technologies , a digital public infrastructure company, plunged 20% - the lowest tradable limit of the day - on Monday as analysts downgraded the stock after the company said the company is no longer in contention for the government's PAN 2.0 project Brokerage Equirus Securities slashed its rating on the stock to sell and price target for March 2026 to ₹900, implying further downside of 21% from Monday's closing of ₹1,143.2."This is a material negative as PAN services contribute 50% of the company's revenue," said the brokerage in a client note. "While FY26 impact may be muted, we expect a 75-100% collapse in this revenue stream over the next 2-3 years."As of March 31, Canara Bank Axis Bank and Bank of Baroda jointly owned 13.17% in the firm, which is entirely owned by public shareholders. Investor Ramesh Damani held 1.05% in the company."Protean gets about 45-50% of its revenue from PAN operations, so losing the PAN 2.0 contract could hit its earnings from FY27 unless it secures new projects," said Manish Chowdhury, head of research, StoxBox. " There's also talk of a pricing revision for its NPS project in FY27, which, if materialised, could hurt profits."
Economic Times
20-05-2025
- Business
- Economic Times
How will Resonac's plant closures impact the global graphite market?
Graphite electrodes are mainly used in steelmaking and by chemical firms. China is the world's leading producer of graphite, used for military applications and the making of electric vehicle batteries. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads Mumbai: Graphite electrode manufacturers HEG and Graphite India surged on Monday in weak trading following news reports that Japan's Resonac Holdings will shut down its China and Malaysia plants. Resonac is a major producer of graphite electrodes , used for electric arc furnace (EAF) of Graphite India jumped 15.1% to close at ₹560. HEG shares advanced 7.7% to end at ₹528.3."Resonac's Chinese and Malaysian plants account for about one-third of the company's total graphite production," said Manish Chowdhury, head of research at Stoxbox. "While the global supply of graphite will go down post this move, demand remains intact, in tandem with demand for metals and other industrial usages, which can now be fulfilled by Indian companies."Chowdhury expects prices of graphite electrodes to firm up due to a demand-supply electrodes are mainly used in steelmaking and by chemical firms. China is the world's leading producer of graphite, used for military applications and the making of electric vehicle HEG derives almost 70% of its revenues from exports, Graphite India earns around 35% of its revenues from of Graphite India are down 1.4% this year, whereas HEG shares have remained flat in 2025 so far. The benchmark NIfty 500 is up 1.7% in this brokerage B&K Securities assigned a 'Buy' rating on Graphite India, with a price target of ₹718, citing an upward trend in graphite electrode (GE) implies 28.2% upside from Monday's close.
Time of India
20-05-2025
- Business
- Time of India
Protean eGov Technologies shares plunge 20% after downgrade amid PAN 2.0 project withdrawal
Mumbai: Shares of Protean eGov Technologies , a digital public infrastructure company, plunged 20% - the lowest tradable limit of the day - on Monday as analysts downgraded the stock after the company said the company is no longer in contention for the government's PAN 2.0 project . Brokerage Equirus Securities slashed its rating on the stock to sell and price target for March 2026 to ₹900, implying further downside of 21% from Monday's closing of ₹1,143.2. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like See the Latest Apartment Deals in Marrakech (Take a Look) Apartments for rent | Search Ads Learn More Undo Agencies "This is a material negative as PAN services contribute 50% of the company's revenue," said the brokerage in a client note. "While FY26 impact may be muted, we expect a 75-100% collapse in this revenue stream over the next 2-3 years." As of March 31, Canara Bank , PNB , SBI , Axis Bank and Bank of Baroda jointly owned 13.17% in the firm, which is entirely owned by public shareholders. Investor Ramesh Damani held 1.05% in the company. "Protean gets about 45-50% of its revenue from PAN operations, so losing the PAN 2.0 contract could hit its earnings from FY27 unless it secures new projects," said Manish Chowdhury, head of research, StoxBox. " There's also talk of a pricing revision for its NPS project in FY27, which, if materialised, could hurt profits." Live Events
