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India Today
a day ago
- Business
- India Today
Explained: Why Mazagon Dock share price tumbled 5% after Q1 results
Shares of Mazagon Dock Shipbuilders Ltd (MDL) fell over 5% in early trade on Tuesday after the state-owned defence shipbuilder reported its June quarter earnings. While revenue rose 11.4% year-on-year, the Street was left stock was down 4.50% to Rs 2,664.25 on the Bombay Stock Exchange (BSE) at 10:34 am. In a month, the stock has tumbled 18%, still up almost 19% this biggest concern was a 53% year-on-year drop in standalone EBITDA, which came in significantly below expectations. Analysts blamed elevated provisioning—now a recurring issue—as the main drag on margins. These provisions, typically made for liquidated damages, warranty claims, and project-related risks, weighed heavily on profits for the second straight quarter. Despite the Q1 miss, brokerages remain positive on MDL's long-term outlook. Nirmal Bang and Antique Stock Broking have both maintained their 'Buy' ratings, citing the company's strong fundamentals and a robust pipeline of upcoming defence contracts. Nirmal Bang expects the company to deliver a 21% compound annual growth rate in revenue, 22% in EBITDA, and 17% in net profit between FY25 and FY27. It has set a target price of Rs 3,540, valuing the stock at 45 times projected June 2027 of that optimism is tied to MDL's chances of bagging large submarine contracts under the P75 and P75I programmes. If secured, these could grow the company's order book from Rs 32,000 crore to more than Rs 1.25 lakh crore. Nirmal Bang also pointed to efficiency initiatives like Shipyard 4.0 and broader digitisation efforts as drivers of future margin Stock Broking, while trimming its FY26 earnings estimate by 8.3% to account for near-term provisioning impact, has kept its target price unchanged at Rs 3,858. It expects provisioning to normalise from the September quarter and even sees scope for some reversals. Antique believes MDL's position in submarine manufacturing is unmatched and that the company stands to gain significantly from India's naval modernisation biggest near-term trigger could be the expected award of three additional Scorpene submarines, which may be granted to MDL on a nominated basis. This alone could double its current order book. Also in the pipeline are the Rs 70,000 crore P75I submarine project and the similarly sized P17B stealth frigate with the stock trading at about 33.8 times one-year forward earnings—well above its historical average—investors appear to be booking profits on any signs of a slip. Two straight quarters of margin pressure and a lack of management guidance may have pushed some to the the structural story remains intact. MDL's proven track record, strategic role in India's defence ecosystem, and expanding order visibility continue to make it a long-term story to watch.(Disclaimer: The views, opinions, recommendations, and suggestions expressed by experts/brokerages in this article are their own and do not reflect the views of the India Today Group. It is advisable to consult a qualified broker or financial advisor before making any actual investment or trading choices.)- Ends
Time of India
27-06-2025
- Business
- Time of India
Last chance: HDB Financial's Rs 12,500 crore IPO closes today. Should you chase 8% listing gains?
Brokerages See Listing Pop Ahead Live Events Valuation Discount Despite Strong Parentage (You can now subscribe to our (You can now subscribe to our ETMarkets WhatsApp channel Time is running out for India's largest IPO of 2025. HDFC Bank-backed HDB Financial Services ' mega Rs 12,500 crore public offering closes today, with grey market premium (GMP) signaling potential listing gains of 8% when the stock debuts on Wednesday, July 2. The IPO has already been oversubscribed 1.6 times overall, but retail investors still have room to participate - the retail quota stood at just 76% subscription this morning on the final day of Financial, India's seventh-largest retail-focused NBFC with a gross loan book of Rs 1,06,880 crore, is seeking to raise capital through a combination of Rs 2,500 crore fresh issue and Rs 10,000 crore offer for sale (OFS). The listing is mandatory under RBI norms for upper-layer issued a bullish call, stating: "We expect healthy listing gains and remain assertive from a medium to long-term perspective. Strong parentage and much smaller in size as compared to its core peer (Bajaj Finance) provides a long runway for growth."The brokerage values the company at an "FY25 price-to-book ratio of ~3.2x/~3.4x at post-issue capital at the lower price band & upper price band respectively, which is reasonable as compared to its peers considering the growth and return ratio profile."SBI Securities projects listing gains of 5-10%, recommending investors "SUBSCRIBE to the issue at the cut-off price." The firm highlighted that HDB is "backed by strong parentage, brand, governance, risk management and a high credit rating" and is "one of the largest NBFCs catering to the 2nd largest customer franchise."Chola Securities issued a 'SUBSCRIBE' rating specifically for listing gains, noting that while there has been "slippage in asset quality, rise in incremental credit cost and compression in Net Interest Margins in FY'25 over FY'24," the "tail winds of interest rate cuts, falling inflation trajectory, normal monsoons is likely to address aforesaid concerns going forward."Nirmal Bang compared HDB with sector leader Bajaj Finance and peers like Chola, M&M Finance, Shriram Finance and L&T Finance. "HDB's asset quality is superior to peers on the back of its strong ownership and management pedigree," Nirmal Bang noted. However, the firm pointed out that "owing to HDB's prudent focus on quality of customers, it earns a lower spread vis-à-vis peers. Also HDB's operational cost is elevated."This has resulted in HDB delivering "ROA in the range of between 2 to 3% over last 3 years with FY25 post IPO ROA of 2.0%," significantly below the peer average of 3.2% and Bajaj Finance's 5.0%.Despite the performance gap, Nirmal Bang believes HDB is "attractively valued from a long term perspective" when compared to Chola, which has an ROA of 2.4% but trades at 5.5x FY25 versus HDB's 3.4x post-IPO Financial operates through three main verticals: Enterprise Lending (39.30%), Asset Finance (38.03%) and Consumer Finance (22.66%) of their total gross loan book. The company offers lending products through a wide omni-channel distribution network to serve its diverse customer fresh issue proceeds will be used to augment the company's Tier-I capital base for future growth and onward lending requirements, while the listing fulfills RBI's mandatory requirements for upper-layer NBFCs.
Mint
14-06-2025
- Business
- Mint
Oswal Pumps IPO: GMP, subscription status, other key details. Apply or not?
Oswal Pumps IPO: The initial public offering (IPO) of pump manufacturer and distributor, Oswal Pumps Ltd, was launched on Friday and received decent demand from investors. Oswal Pumps IPO is a mainboard IPO. The three-day subscription period of Oswal Pumps IPO began on June 13 and will end on June 17. Oswal Pumps IPO allotment date will likely be June 18, and the IPO listing date is expected to be June 20. The equity shares of the company will be listed on both the stock exchanges - BSE and NSE. The company plans to raise ₹ 1,387.34 crore from the public issue, which is a combination of fresh issue of 1.45 crore equity shares worth ₹ 890 crore, and an offer-for-sale (OFS) component of 81 lakh shares amounting to ₹ 497.34 crore. Oswal Pumps IPO price band is set at ₹ 584 to ₹ 614 per share. The IPO lot size is 24 shares, and the minimum investment amount required by retail investors is ₹ 14,016. IIFL Capital Services, Axis Capital, CLSA India, JM Financial, Nuvama Wealth Management are the book running lead managers of the Oswal Pumps IPO, while MUFG Intime India (Link Intime) is the IPO registrar. Oswal Pumps IPO Here's a look at Oswal Pumps IPO GMO, subscription status, review, other details: Oswal Pumps IPO has been subscribed 42% so far. The public issue received bids for 67.83 lakh equity shares as against 1.62 crore shares on offer, according to data on NSE as on Friday, June 13, the first day of the bidding process. The retail portion was subscribed 45%, while the Non Institutional Investors (NII) category was booked 79%. The Qualified Institutional Buyers (QIBs) portion received 8% subscription so far. Oswal Pumps shares are showing a muted trend in the grey market premium (GMP). According to stock market experts, Oswal Pumps IPO GMP today is ₹ 40 per share. This indicates that Oswal Pumps shares are trading at ₹ 654 apiece in the grey market, which is at a premium of 6.51% to the issue price of ₹ 614 per share. Oswal Pumps is the fastest growing vertically integrated solar pump manufacturer in India, in terms of revenue growth between FY22-FY24. The company has delivered robust Revenue, EBITDA and PAT CAGR of 44%,103% and 134% between FY22-9MFY25 respectively. It currently has an order book of ₹ 1,100 crore and an additional bid pipeline of ₹ 3,200 crore indicating decent growth visibility in the coming years. 'At the upper price band of ₹ 614, on post issue capital basis, the IPO is valued at 9MFY25 annualized P/E and EV/EBITDA multiple of 24.2x and 16.4x respectively, which is at a discount to its closest peer Shakti Pumps. We recommend 'Subscribe' to the issue,' said Nirmal Bang. Rajan Shinde, Research Analyst, Mehta Equities believes Oswal Pumps IPO brings investors an opportunity to invest in a high-growth, vertically integrated player in the solar pump manufacturing space. 'On valuation parse on upper price band of ₹ 614, the issue is asking a market cap of ₹ 6,998 crore. Based on annualized FY25 annualised earnings and fully diluted post-IPO paid up capital, the company is asking for a PE 24.2x which we feel reasonable relative to industry peers which are trading at an average of 42x,' Shinde said. As one of the largest suppliers of solar-powered agricultural pumps under the PM-KUSUM scheme, he believes the company is well positioned to benefit from policy tailwinds and the accelerating shift toward sustainable irrigation solutions. Hence, Shinde recommends investors to subscribe to the Oswal Pumps IPO for long-term perspective. Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
Indian Express
04-06-2025
- Business
- Indian Express
After robust January-March quarter growth, high-frequency data suggests weaker April; all eyes on rural consumption
The Indian economy seemingly had a slow start to 2025-26, with a number of high-frequency indicators suggesting activity levels weakened after the GDP grew by a faster-than-anticipated 7.4 per cent in the final quarter of FY25. Data released last week showed growth in factory output, as measured by the Index of Industrial Production (IIP), edged down to an eight-month low of 2.7 per cent in April 2025. Before that, the uncertainty caused by the US' reciprocal tariffs before their quick 90-day suspension saw the merchandise trade deficit widen to a five-month high of $26.42 billion in the first month of the current fiscal. Meanwhile, the HSBC India Purchasing Managers' Index (PMI) slipped to a three-month low of 57.6 last month from 58.2 in April 2025, which was little-changed from 58.1 in March. Banks' non-food credit growth cooled to 10.2 per cent year-on-year as on April 18 from 19 per cent a year ago and 11 per cent as on March 22, 2025. Is Indian economy witnessing cyclical moderation? According to data tracked by Nirmal Bang Institutional Equities, early data for April 2025 shows 75 per cent of indicators were in positive territory on a year-on-year basis compared with 80 per cent in March 2025. When seen month-on-month, the proportion of indicators that were up in April declined to 40 per cent from 82 per cent in March. 'Our proprietary output index is indicating continued cyclical moderation in April 2025; the rebound in March has failed to sustain,' Teresa John, deputy head of research and economist at Nirmal Bang, said in a note. HSBC too sees April as being 'a shade weaker', with 64 per cent of the indicators its economists track growing in April 2025 as per early data, slightly down from 66 per cent in January-March 2025. Further, Nomura's India Composite Leading Index has been below 100 since the last quarter of 2024, pointing towards below-trend growth. Rural growth to the rescue The 7.4 per cent growth print for the final quarter of the last fiscal has, admittedly, pushed most experts to review their projections for the current year. On Tuesday, UBS Securities raised its growth forecast for FY26 by 40 basis points (bps) to 6.4 per cent. Its India Composite Economic Indicator, a lead indicator of activity was up 1.1 per cent month-on-month in April 2025. While this was slightly down from the average 1.2 per cent growth seen in the quarter ended March, the marginal decline suggested 'economic momentum held up in April despite the trade war'. The key to ensure growth in FY26 does not drop too far from 6.5 per cent last year could be the rural economy, which is expected to get a leg-up from the good monsoon and lower inflation, and especially food inflation. While agricultural sector growth slowed in January-March 2025 to 5.4 per cent, it has now posted three consecutive quarters of 4 per cent-plus expansion. Tractor sales data has been encouraging as well, with the first four months of 2025 seeing 14.3 per cent higher domestic sales according to the Tractor and Mechanization Association. Leading manufacturer Mahindra & Mahindra reported a 10.4 per cent year-on-year growth in domestic tractor sales in May 2025, according to data released on Sunday. RBI expected to continue monetary easing With growth this fiscal widely seen below 6.5 per cent, the Reserve Bank of India's Monetary Policy Committee (MPC) is expected to reduce the policy repo rate on Friday to 5.75 per cent, aided by benign inflation. The central bank expects the Consumer Price Index of inflation to average 4 per cent in FY26, in line with its medium-term target, providing it room to keep cutting rates and to spur economic activity. Nomura economists Sonal Varma and Aurodeep Nandi, who see retail inflation averaging 3.3 per cent in FY26, expect the MPC to lower the repo rate by another 100 bps to 5 per cent by the end of December 2025.
India Today
22-05-2025
- Business
- India Today
IndusInd Bank shares in focus after Q4 loss amid fraud. Buy, hold or sell?
IndusInd Bank shares fell over 3% in early trade on Thursday, but pared losses to trade 0.74% higher at Rs 776.80 at around 9:30 am, as investors reacted to the bank's first quarterly loss in nearly two decades. The setback, disclosed in its January–March earnings report, comes on the back of suspected internal fraud and a string of accounting discrepancies that have significantly dented investor private lender reported a net loss of Rs 2,236 crore for the fourth quarter, a sharp reversal from a profit of Rs 2,347 crore in the same period last year. This marks a pivotal moment for the bank, which has now admitted that certain employees may have engaged in fraudulent activity that impacted its financial HOLD OR SELL?Brokerages have responded swiftly to the developments. Nirmal Bang cut its earnings estimates for FY26 and FY27 by 23.6% and 13% respectively, assigning a target price of Rs 730 and valuing the bank at 0.8 times its FY27 estimated book value. It warned of prolonged pressure on the stock due to slowing loan growth, elevated stress in unsecured lending, and uncertainty around the incoming was even more bearish, slashing its target from Rs 750 to Rs 600. The brokerage said it struggled to reconcile key earnings metrics like operating profit and fees with management's disclosures. It warned that repeated discrepancies would likely erode depositor confidence, forcing the bank to hold higher liquidity and impacting net interest margins well into FY26. It also cautioned that return on assets could remain below 1% through and Motilal Oswal joined in cutting their target prices sharply, with both pointing to the lack of a credible recovery roadmap. HSBC now sees the stock at Rs 660, while Motilal Oswal trimmed its target to Rs 650 from Rs 850, noting that the pace of business recovery and the appointment of a new CEO would be critical near-term the heart of the bank's troubles are multiple lapses that came to light over recent months. An internal probe found incorrect accounting of derivative trades had caused a Rs 1,966 crore hit to FY25 earnings. Separately, Rs 684 crore was wrongly booked as interest income in the microfinance portfolio over three quarters, a sum that was reversed in were also Rs 595 crore worth of unsubstantiated balances in 'other assets', which were netted off against 'other liabilities' earlier this year. Another Rs 172 crore was incorrectly recorded as fee income, and misclassification of microfinance loans led to under-provisioning of over Rs 1,880 crore, which the bank has now slippages in the microfinance segment alone amounted to Rs 3,510 crore, triggering further interest reversals of Rs 180 scale of these disclosures has raised deep questions over the bank's internal controls. With CEO Sumant Kathpalia and Deputy CEO Arun Khurana having stepped down last month, IndusInd is in the final stages of selecting new leadership and is expected to submit a proposal to the RBI by June participants believe the road to recovery could be long. Analysts noted that banks facing accounting lapses of this scale often take three to four years to regain investor confidence and operational stability. IndusInd Bank, they said, may recover faster given its size and market position, but it will likely remain under a cloud for the foreseeable future.(Disclaimer: The views, opinions, recommendations, and suggestions expressed by experts/brokerages in this article are their own and do not reflect the views of the India Today Group. It is advisable to consult a qualified broker or financial advisor before making any actual investment or trading choices.) advertisement
