Latest news with #MihirVora
India Today
4 hours ago
- Business
- India Today
IPO season heating up with Rs 2.58 lakh crore in queue: Is Dalal Street ready?
India's IPO market is witnessing a fresh wave of activity, with companies rushing to raise funds. After a steady first half, the second half of 2025 is expected to be packed with major public issues. In July alone, 11 mainboard IPOs have either been listed or are set to include names such as Sri Lotus Developers & Realty, Laxmi India Finance, Shanti Gold International, Brigade Hotel Ventures, GNG Electronics, Indiqube Spaces, PropShare Titania (Property Share Investment Trust), Anthem Biosciences, Smartworks Coworking Spaces, Crizac Ltd, and Travel Food Services WORTH RS 2.58 LAKH CRORE IN THE PIPELINEAccording to data from Prime Database, IPOs worth Rs 1.15 lakh crore have already been approved by the Securities and Exchange Board of India (Sebi) and are waiting for favourable market conditions to addition, IPO proposals worth another Rs 1.43 lakh crore are under Sebi's review. This puts the total IPO pipeline at Rs 2.58 lakh large offers are expected to drive this phase, including Tata Capital's Rs 17,200-crore IPO, LG Electronics' Rs 15,000-crore issue, and Groww's Rs 5,950-crore share sale. Other upcoming names include Meesho, fintech unicorn PhonePe, Boat, WeWork India, Lenskart, Shadowfax, and Physics firms are looking to raise between Rs 1,500 crore and Rs 9,000 crore. Others in line include Pine Labs, Amagi, Wakefit, Urban Company, TableSpace and Shiprocket.A STRONG FIRST HALF, BUT BIGGER ISSUES COMINGThe first six months of 2025 (January–June) saw 26 companies raise Rs 52,200 crore via biggest issue was HDB Financial Services, which mopped up Rs 12,500 crore. For comparison, 2024 saw 90 IPOs raising a total of Rs 1.60 lakh crore. The first half of 2024 had 34 IPOs that raised Rs 29,608 crore, while the second half brought in Rs 1.30 lakh crore through 56 makes the current pipeline stand out is not just the number of companies planning IPOs, but also the size of their issues. Many of the firms are backed by private equity and venture capital investors, and are now eyeing the public market as an exit route.'IPOs are picking up as many PE funds are nearing the end of their life cycle and need exits,' said Mihir Vora, chief investment officer at Trust Mutual Fund, speaking to The Economic FUNDS PLAY A KEY ROLEThe surge in IPO activity is also being supported by mutual funds, which are deploying capital more aggressively in the primary market due to high valuations in the secondary the 12 months to June 30, equity mutual fund assets grew by 22%, rising from Rs 26.82 lakh crore to Rs 32.69 lakh crore. Systematic investment plans (SIPs) are adding around Rs 27,000 crore every month to equity-oriented schemes. This steady inflow gives mutual funds a regular supply of capital to participate in IPOs."The growth in fundraising through IPOs has been on the back of growing investor participation, both retail and institutional, as well as retail through institutional, particularly mutual funds," Bhavesh Shah, managing director and head of investment banking at Equirus Capital told ET. RETAIL INVESTORS AND SENTIMENT BOOSTRetail investors too have shown strong interest in several recent IPOs, with many being oversubscribed within hours. Positive listing gains for some companies have further improved sentiment. The high demand is a mix of long-term investing interest and short-term listing gains, although experts caution that not all issues will deliver strong many companies rushing to complete their listings before the financial year-end and a stable economic outlook, the rest of 2025 may see a record number of public issues, provided market conditions stay favourable. - EndsMust Watch advertisement
Economic Times
9 hours ago
- Business
- Economic Times
India's IPO market set to soar with Rs 2.58 lakh crore offerings in pipeline
Live Events Agencies (You can now subscribe to our (You can now subscribe to our ETMarkets WhatsApp channel Mumbai: From Tata Capital's ₹17,200-crore offer and LG Electronics' ₹15,000-crore issue to Groww's ₹5,950-crore share sale - India's primary market is gearing up for a blockbuster round of initial public offerings (IPOs) in the rest of 2025. Financial services firms, startups, unicorns and others are among those preparing to list on the domestic to data from Prime Database, IPOs worth ₹1.15 lakh crore have received approval from the Securities and Exchange Board of India (Sebi) and are awaiting market entry. Another ₹1.43 lakh crore of share sale proposals are awaiting regulatory ₹2.58 lakh crore of offerings are in the the first half of 2025 (January-June), 26 companies raised ₹52,200 crore. The largest among them was HDB Financial Services , which raised ₹12,500 crore. The pipeline for 2025 includes new age businesses such as Meesho, fintech unicorn PhonePe, Boat, WeWork India, Lenskart, Shadowfax, Groww and Physics Wallah, among sizes are expected in the range of ₹1,500 crore to ₹9,000 crore. Pine Labs, Amagi, Wakefit, Urban Company, TableSpace and Shiprocket are among the other firms looking to raise money through the first half of 2024, 34 public offerings were launched, collectively raising ₹29,607.95 crore, and in the second half, 56 hit the market, mobilising ₹1.30 lakh calendar year 2024 saw a total of 90 IPOs raising Rs 1.60 lakh crore, according to strong pipeline of issuances is driven by confidence that investor appetite for IPOs remains strong."The growth in fundraising through IPOs has been on the back of growing investor participation, both retail and institutional, as well as retail through institutional, particularly mutual funds," said Bhavesh Shah, managing director and head of investment banking , Equirus funds, armed with a continuous flow of money into equity schemes, have been among the top participants in IPOs, as rich valuations in the secondary market have prompted money managers to deploy money in these the past 12 months to June 30, equity scheme assets grew 22% from Rs 26.82 lakh crore to Rs 32.69 lakh crore. About Rs 27,000 crore gets added to equity-oriented schemes each month by way of systematic investment plans (SIPs).Several IPOs have been driven by private equity firms nearing the end of their fund cycles, triggering a wave of exit activity."IPOs are picking up as many PE funds are nearing the end of their life cycle and need exits," said Mihir Vora, chief investment officer at Trust Mutual Fund.
Economic Times
5 days ago
- Business
- Economic Times
Anand Shah on why he remains positive on metal pack, manufacturing
Live Events You Might Also Like: Sectoral themes or bottom-up stories? Anand Shah explains the state of the market You Might Also Like: Mihir Vora on where to look for opportunities in the broader market (You can now subscribe to our (You can now subscribe to our ETMarkets WhatsApp channel CIO- PMS & AIF Investments,says global ferrous metal profitability remains muted due to strong Chinese exports, pressuring steel company earnings worldwide. Despite this, there's optimism for margin recovery in select chemicals and metals sectors, driven by attractive valuations and potential earnings growth. While positive on manufacturing, particularly defense and railways, valuations are becoming less profitability in general, especially in the ferrous metals, is still fairly muted globally. We are seeing very strong exports coming out of China which is putting a lot of pressure not only on the profitability of the Chinese steel companies but even the profitability for steel companies globally is under pressure as Chinese demand remains muted. But the production and exports continue to remain whole premise on being overweight on select cyclical sectors is that we believe in pockets of chemicals and pockets of metals, we will see bottoming out of the margin sooner or later and that is when a little bit of pricing power will come back along with a little bit of margin growth along with reasonable topline growth. Valuations remain fairly attractive in these segments of the market relative to the overall market PE multiples. So, a combination of expected recovery in earnings and the reasonable valuations makes us more positive on this sector versus continue to be very bottom up in pharma because there are very different drivers of earnings and growth for each company. The outlook for US generics notwithstanding, the tariff related uncertainty remains little positive. We had a lot of pricing pressure which has eased and that continues to remain fairly favourable for the generic companies in absence of a tariff issue. So, we still remain on the sidelines. We are still watching out to see what is happening on the tariff front and how the US generics is playing out, which is a large component of profitability for most of the pharma have been positive on manufacturing for quite a while now. We saw the bottoming out of the manufacturing margins in 2019, 2020 phase and since then there has been a sharp recovery in profitability but more importantly, pockets of markets like defence and others have actually done extremely well and to that extent the valuations do not remain that attractive today in many of those within manufacturing and again across the market, you will have to be more bottom up. Broadly the market is fairly priced and to that extent, no outsized returns can be expected from the broader market and from here on, for both for creating alpha on the way up as well as protecting the capital in the event of a sharp correction in the market being more bottom up, being more focused on the earnings growth rate at a reasonable price and reasonable valuations are both very important. We continue to focus on those areas, identifying sectors and companies where earnings growth relative to the valuations are attractive of the very big themes for us has been consolidation versus fragmentation. In our bottom-up stock picking, it is very important to see which sectors or which segments of the market where the number of players are reducing. There is a consolidation and to that extent, the pricing power is moving back to the manufacturer or to the service provider and that is where I have spoken about airlines and telecom sector in general that context, the consumer space in general and paints in particular, have had a very high profitability for a very long period of time. We had a fairly stable competitive intensity where four players dominated that market. Since then, given that the valuations were reasonably high for this sector, and the market was ready to value them in greater multiples to their earnings, it has attracted a lot of have seen an influx of quite a few players in that segment of the market, particularly in paints over the last few years and that has brought down the growth not only for individual companies, but also the margins. We are watching that space and seeing if there is an end of competition and we will again start seeing consolidation and moving up. That should help the sector and the companies in those has been consolidating over the last 20 years and at region level it is further consolidated. Having said that, what we all like in the cement sector is that the profits are not very high. The margins relative to historically what they made is not significantly higher and to that extent we believe the cement has room for prices to move up or margins to move up given that the inflation has not been very high in that segment of the market for a very long period of in one pocket, southern India, the margins were far lower than the average and that is where we are again seeing some bit of uptick. Otherwise, across India, we expect consolidation should drive slowly and steadily the profitability to higher levels as demand picks up. Demand will be the key, spending on real estate, spending on housing, spending on infrastructure. Without that, we will not get sustainable improvement in pricing and profitability that changes month on month. The reason is that demand is not as strong as one would want for a sustainable growth and improvement in pricing and the margins for the sector.
Time of India
6 days ago
- Business
- Time of India
What sectors are going to have their day in the sun right now? Mihir Vora answers
Mihir Vora , CIO, Trust MF , says government spending continues to drive visibility in infrastructure, power, telecom, and defense sectors. Rural financing, particularly microfinance and small gold loans, shows promise due to government investment and economic recovery. While large-cap, FMCG, and IT sectors are avoided, domestic segments and consumer discretionary items, especially AC stocks, present selective value opportunities. There are earnings, there are tariffs and there are lots of moving parts to address in the market right now. Amid all of these factors that are at play, how are you viewing the market right now and where do you think we can still find some value? Mihir Vora : I would say the market is in a wait-and-watch mode because after the sharp correction in the first quarter, we have recovered very smartly, and we have recovered in spite of all the domestic and global events like tariffs, the border situation, etc. So, there are lots of moving parts and the market has sustained very well against all those odds. Now, we are at a stage where both the negatives and the positives are evenly balanced and evenly priced in and going forward, we will have to look forward to our own domestic fundamental growth which is something that we are very closely observing. Explore courses from Top Institutes in Select a Course Category Operations Management Management Finance others Product Management PGDM Public Policy Data Science Data Science Degree Healthcare Artificial Intelligence MBA Technology Others healthcare Design Thinking Digital Marketing MCA CXO Data Analytics Leadership Cybersecurity Project Management Skills you'll gain: Quality Management & Lean Six Sigma Analytical Tools Supply Chain Management & Strategies Service Operations Management Duration: 10 Months IIM Lucknow IIML Executive Programme in Strategic Operations Management & Supply Chain Analytics Starts on Jan 27, 2024 Get Details by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Is it legal? How to get Internet without paying a subscription? Techno Mag Learn More Undo For example, there are mixed signals on the growth side. There are pockets of recovery, but there are also pockets where there is persistent weakness. So, the results season and the guidance that the companies give, as well as the next few data points on growth, especially credit growth are something that we are looking forward to now. At the same time, talking about the earning season, there were expectations from the IT basket. After TCS came up with the numbers, other IT majors will be coming up with their numbers, but the expectations are high for banks and financials. What is your take on the earning season? Will it be the banks and financials or the consumption bucket that will give the next direction to the market? Mihir Vora: As far as the large banks are concerned, we do not have extremely positive signals yet because a key variable, credit growth, is still tepid. Within banks and financials, we would look at the NBFCs, especially the retailing NBFCs which have a relatively higher proportion of a fixed rate book because funding cost is going to come down for everybody, but in the case of banks, a lot of the loans are floating rate so the asset repricing also happens a bit faster. Whereas for NBFCs, which have a fixed rate kind of a book, the asset repricing happens over a period of time. So, I would say that retail NBFCs, certain pockets of banks which are in niche segments like MSME or retail or gold or even microfinance, might show better margins and better growth. We have to be picky and choosy. Having said that, the markets cannot do well and the economy cannot do well unless the large banks kick off and in that case, the valuations are attractive for most of the large banks. No issues, balance sheet settling, but the only thing we need to watch out for is growth and right now, the default case is that the second half after the monsoons should see a pickup in growth and that is what we would start positioning ourselves for. Live Events You Might Also Like: For India, what RBI Guv is doing is far more important than what Trump is doing: Vikas Khemani In terms of a portfolio strategy right now, what is it that you are doing given that there are so many unknowns like we just talked about which are still up in the air, do you think doing nothing is the best strategy right now? Mihir Vora: Absolutely, as I said, since we are in a wait-and-watch mode, the market is in a consolidation mode because we do not have the absolute downside in valuations. Valuations are fair, probably a little above average. So, it is not like there are extremely cheap valuations to start with and at normal rates, you would need earnings to come back to normal rates. My guess is that it is going to be a stock pickers' market . For midcaps and smallcaps, at least from the last quarter's numbers, look to have a far better story out there and the sheer number of stocks is much larger in the mid and smallcap segment. Probably, in the next few months, it will be a very subsector specific, stock specific market. What sectors are going to find their day in the sun right now? Mihir Vora: The sectors in which there is visibility are still linked to government spending. The government spending does not seem to have come off. So, to that extent we will see that infra push, the power, telecom, defence push continue and we should see news flow in this segment to continue. So that is one segment where relatively speaking there is better visibility. In the retail financing space, there seems to be better visibility. Some pockets of rural financing like microfinance might be a play now because valuations have corrected, the government is spending a lot on the rural economy. The rural economy seems to be on the healing path so to say and microfinance is a direct beneficiary of that. You Might Also Like: Tariff situation isn't going to last for many more months as Trump can't afford a recession: Ed Yardeni So, microfinance and small gold loans segments can continue to do well. We might see some base effect in a lot of the capital good stocks because last year was a low base year and so that is a positive. There will be some base effect in the metals piece so there might be some pockets of value out there. It is really very picky and choosy. We are structurally underweight on largecap because as we discussed, it is a single-digit growth rate kind of an environment, for guidance also it is more or less according to that single digit, not very exciting. FMCG growth again is not very exciting. IT, FMCG, low growth utilities are the segments which we avoid. We are more positive on the domestic segments. Hopefully, consumer discretionary should also come back. Stocks have corrected a lot. Some of the AC stocks have corrected. They might offer some pockets of value. We are being choosy and picky about where the growth pockets are. Government spending as a theme is something you are liking at the moment but another theme that we are seeing showing some value right now is domestic demand focused themes in stocks, given the kind of tariff overhang that we have and we are in the wait and watch mode right now. What is your take on this entire domestic demand focused theme and some stocks that are servicing that theme? What do you like about this theme? Mihir Vora : Rural recovery is a theme. I would still wait for some more data points. It is still tentative. I would not say it is a full-blown recovery. It's the same for urban areas. We are getting mixed data points on urban unemployment. The visibility in consumption is still in the premium consumption category. So, wherever there is premiumisation or premium consumption, those categories are still showing some traction, like high-end retailing or jewellery or eating out and there it is a little more or less elastic, but in general, the lower-end consumption is still a question mark.
Economic Times
11-07-2025
- Business
- Economic Times
3 Nifty50 stocks in 100x PE club: Are sky-high valuations the new reality?
The Nifty50 witnesses a valuation divergence as stocks like Eternal, Jio Financial, and Trent trade at triple-digit PEs, contrasting sharply with Coal India's modest valuation. This raises concerns about speculative excess versus rational pricing of future growth. Trent's recent performance highlights the risks of high valuations, prompting fund managers to emphasize consistent delivery and caution against herd mentality. Tired of too many ads? Remove Ads The Trent Reality Check Tired of too many ads? Remove Ads Fund Managers Weigh In Tired of too many ads? Remove Ads India's equity benchmark Nifty50 index now houses 3 stocks trading at price-to-earnings (PE) ratios above 100x, signaling a fundamental shift in how investors are pricing growth versus profitability in the world of bluechip counters. Leading this valuation revolution is Eternal with a staggering 484x PE, meaning investors are paying for nearly five centuries worth of current emergence of this triple-digit PE phenomenon within the Nifty creates a tale of two markets: while PSU mining giant Coal India trades at a modest 7x earnings, representing old-economy value, new-age stocks like Eternal (484x), Jio Financial (123x), and Tata Group's retail crown jewel Trent (124x) lead the triple-digit PE valuation divergence, from Coal India's 7x PE to Eternal's 484x, represents one of the widest spread in Nifty history, raising questions about whether India's premier index is witnessing rational pricing of future growth potential or speculative excess that could unwind when lofty expectations meet ground risks of such elevated valuations became starkly apparent with Trent's recent performance. The stock has plummeted 24% year-to-date and dropped 12% in just one week amid mounting concerns about its ability to sustain the blistering 35% compound annual growth rate it delivered over the past five company's standalone revenue growth in Q1 slowed dramatically to just 20%. At its AGM, management disappointed investors on near-term growth expectations in its core fashion business, which is expected to deliver around 20% growth in Q1FY26, sharply down from its five-year CAGR of 35%. While management reaffirmed their aspiration of 25%-plus growth for the coming years, the current run rate falls significantly short of that target."This is what happens in high PE stocks. Any disappointment in growth leads to sharp decline in share prices," noted one market observer. Among the triple-digit PE stocks, Eternal has lost around 5% of its value so far this year, while Jio Financial has bucked the trend with a 10% gain."In established high-growth companies, we are seeing that the market prices in high terminal value i.e. the ability of these companies to scale, reinvest, and capture fast-growing markets for a long period of growth," said Mihir Vora, CIO of TRUST Mutual Fund. "That can justify elevated multiples but it's not a free pass. Investors are quick to reassess if execution falters."Vora emphasized that while some businesses are being rewarded with high PEs, that premium is conditional. "It's based on consistent delivery, expanding addressable markets, and reinvestment discipline. In the case of cash-burn models, the current earnings are less relevant and the valuations are based on the market's expectation of the profits after a few years."Atul Bhole, Executive Vice President and Fund Manager at Kotak Mutual Fund, cautioned against generalizing this trend. "From time to time, few companies emerge, which exhibit high growth potential with a large target opportunity set & their perceived ability to capture those opportunities. Such incidents need to be evaluated on a case-by-case basis and cannot be generalised as mainstream," he warned of the risks inherent in such valuations: "Even when the market is collectively accessing the growth potential, there are risks of following herd mentality which can be completely misplaced. Changes in regulatory, competitive or tech environments can support or derail such hypotheses."Dr. VK Vijayakumar, Chief Investment Strategist, Geojit Investments Limited, provided historical perspective: "We have had many instances in the past as well where fancied stocks like Wipro, Infosys used to command very high PE multiples beyond 100. It was during the 2000s amid the Y2K issue."The Dalal Street veteran attributed the current valuation environment to structural changes in the Indian market. "Generally, valuations are on a higher side in India. It is because of the explosive growth in demat accounts, money is flowing into stocks both directly as well as through the SIPs in mutual funds. With so much money being poured in, valuations will remain on the higher side. It will be very difficult to buy India at a cheap price."However, he cautioned about the inherent risks: "Whenever valuations are high, there can be unexpected big corrections. We must be circumspect in high PE stocks."Regarding the specific companies in the triple-digit PE club, Vijayakumar offered mixed views. "For Jio, we are not very sure about growth prospects. The business is still in an infancy stage, not much is known. They have entered the mutual fund business which is already a highly competitive industry."He was more optimistic about the other two: "Trent and Eternal long term prospects are very good. Eternal is not a one or 2-year-old story but a decadal play."The extreme valuation divergence within the Nifty 50, from Coal India's 7x PE to Eternal's 484x, reflects a market grappling with how to value traditional businesses versus new-age growth stories. While fund managers acknowledge that high multiples can be justified for companies with long growth runways, the Trent example serves as a stark reminder that execution risks remain investors navigate this new landscape where triple-digit PEs have entered India's most prestigious index, the key question remains: whether these valuations represent rational pricing of future growth potential or a sign of speculative excess that could unwind when growth expectations meet reality.: Recommendations, suggestions, views, and opinions given by experts are their own. These do not represent the views of the Economic Times)
