Latest news with #RakeshJhunjhunwala
Mint
15 hours ago
- Business
- Mint
Animal spirits: Zenex investors dial bankers for $1 billion sale or IPO
Owners of Zenex Animal Health are exploring a stake sale that could value the veterinary drug maker at over $1 billion, three people aware of the plan said. Investors including Multiples Alternatives, late Rakesh Jhunjhunwala's Rare Enterprises, Canadian pension firm CPPIB and IFC are looking at either an outright sale of Zenex or a public listing, the people said on the condition of anonymity. The company's management and investors invited bankers late last month to prepare an exit plan through a sale or listing, the people said on the condition of anonymity. The consortium had acquired the maker of livestock, poultry and pet medicines from pharma major Zydus Cadila for ₹2,921 crore in 2021. Sharp growth 'An investment banker is likely to be appointed soon, after which the process will kickstart by next month," one of the three people said, adding the company has grown multifold in the last four years. Queries emailed to the spokespersons of Multiples and Zenex remained unanswered. A Rare Enterprises spokesperson did not respond to calls and IFC and CPPIB declined to comment. The Zenex sale plan comes in the wake of Advent International recently buying a significant minority stake in Irish pet medicine maker Felix Pharma for $175 million, in what is seen as betting on fast-growing global market for generic pet medicines. Sale or IPO As per the second person cited above, Rare Enterprises specializes in taking companies public and helping them navigate the journey from private to public; and with CPPIB and IFC expected to stay invested for the long term, an IPO is a possible outcome. 'In which case, Multiples will sell as part of the offer for sale (OFS) in the IPO," he added. Zenex's key segments are livestock business, poultry and exports. Therapeutics and farm care are part of the livestock segment. The company claims it has more than 250 brands and 100,000 vet and para-vet relationships, and sells across 45,000 retailers. It is associated with 14,000 dairy farms, 10,000 poultry farms and 5,000 stockists, the company website claims. Its peers include Virbac Animal Health India, Elanco India, MSD Animal Health India (part of Merck & Co.), Zoetis India Ltd, Ceva Polchem, Cargill India and Boehringer Ingelheim India. 'The company has global ambitions and can be an ideal candidate for either a buyout fund betting on the segment, or a strategic investor looking at a wide portfolio in the animal pharma segment," the third person cited above said. The India veterinary medicine market size was estimated at $1.73 billion in 2024 and is projected to reach $4.17 billion by 2033, growing at a CAGR of 10.23% from 2025 to 2033. Price, volume growth Zenex posted revenue of ₹823.6 crore in FY24, up from ₹753.8 crore a year earlier, according to market intelligence provider Tracxn. Its profit decreased to ₹14.9 crore from ₹19.3 crore in the same period. Earlier in March, it completed acquisition of Ayurvet, an Ayurvedic pet pharma company to help it unlock new growth drivers. As per an October 2023 ratings release by India Ratings, Zenex has been able to drive price and volume growth across its key segments, aided by strong execution capabilities, key brands and healthy supply chain, mitigating future competition risks. 'It is among the largest companies in the therapeutic segment in terms of revenue, and among the top five companies in the farm care segment in India," the release said. 'The market is experiencing growth due to rising awareness about the importance of animal healthcare, a growing number of animal disease outbreaks, and increasing demand for animal-derived protein. Additionally, new product launches, advancements in veterinary medicine, and strong regulatory support contribute to this growth," a 2023 research report by Grand View Research shows. India's vast livestock population of over 536 million, the largest globally, combined with the heavy dependence of nearly 70% of rural households on animals for livelihood, food security, and income, creates a strong foundation for sustained demand in the veterinary medicine market. Government initiatives such as the National Animal Disease Control Programme (NADCP) significantly amplify this demand, it said.
Mint
3 days ago
- Business
- Mint
Motilal Oswal sees 70% rally in this multibagger stock amid expanding order book. Should you buy?
Motilal Oswal has initiated coverage on VA Tech Wabag with a 'buy' rating, citing the company's expanding order book, improving margins and return ratios, and strong free cash flow generation. VA Tech Wabag is a leading, 100-year-old water technology company that offers end-to-end solutions in the design, construction, and operation of wastewater projects. The company has been consistently expanding its order book in recent years, driven by the growing global focus on water and waste management, a sector that involves removing contaminants from sewage or wastewater to make it recyclable, reusable, and environmentally safe. The sector is gaining momentum due to increasing environmental regulations, rising water pollution, growing water scarcity, and industrial demand for wastewater treatment. It is projected to grow from USD 329 billion in 2023 to USD 576 billion by 2032. Backed by industry tailwinds and its strong execution capabilities, VA Tech Wabag has built a robust order pipeline that underpins its future growth prospects. Motilal Oswal highlighted that VA Tech Wabag's current order book stands at ₹ 137 billion, 4.2 times its FY25 revenue, supported by a strong bid pipeline of ₹ 150–200 billion. This provides visibility for 15–20% revenue growth over the next 3–4 years. The order book includes a healthy mix of O&M projects (39%, with execution cycles ranging from 5 to 20 years) and EPC projects (52%, with 2–3-year cycles). Despite being eligible to execute large critical projects globally, it is selective in bidding (focus is on margins and cash flows) and has a win ratio of 25-30%. The brokerage also underscored the company's impressive turnaround in free cash flow over the past five years. VA Tech Wabag moved from a net debt position of ₹ 4 billion in FY19 to a net cash balance of ₹ 5.9 billion at the end of FY25. Motilal expects the company to continue generating strong free cash flows ( ₹ 3.5 billion annually during FY25–28E), driven by healthy operating performance and improvements in the working capital cycle. Return ratios have significantly improved as well. RoCE and RoIC have doubled to 20% and 28% in FY25 from 11% and 12% in FY19, respectively. RoE has risen to 13.8% in FY25, compared to 8–9% reported until FY22. For FY25–28E, the brokerage projects further improvements, with RoCE rising from 20% to 24%, RoE from 14% to 16%, and RoIC from 28% to 39%, which is all above the company's guided range. Motilal Oswal, in its bull case scenario, expects VA Tech Wabag's stock to reach ₹ 2,564 apiece, a potential upside of 70% from its recent closing price. Under the base case scenario, Motilal Oswal has set a target price of ₹ 1,900, implying a 25% upside from Monday's closing level. In the bear case scenario, Motilal Oswal sees the stock falling to ₹ 1,318, expecting 12%, 14% and 15% CAGR in revenue, EBITDA, and PAT over the same period. According to Trendlyne's shareholding data, late investor Rakesh Jhunjhunwala's wife, Rekha Jhunjhunwala, held an 8.04% stake at the end of the June 2025 quarter. The company's shares, following their one-way rally, have witnessed profit booking, resulting in three consecutive months of declines. However, the momentum reversed in March, with the stock gaining 27.6% so far. Looking further back, the stock has delivered stellar returns in the long run, currently up 1143% over the last five years. In December, the stock recorded a fresh all-time high of ₹ 1,944, edging toward the ₹ 2,000 mark. Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before taking any investment decisions.
Mint
16-07-2025
- Business
- Mint
Devina Mehra: How derivative dreams can turn into nightmares but still lure investors
We hear a lot about the Securities and Exchange Board of India's (Sebi) finding that about 93% of all participants in the futures and options (F&O) market lose money. Given the peculiarities of the human mind, everyone seems sure that they will be among the 7% who are winners. In this belief lies a business opportunity for those offering derivative training courses. Of course, anyone who has a magic wand that can make 1% everyday in financial markets can turn ₹1 crore into ₹20,000 crore in five years and has no economic reason to sell you a course for a few thousand rupees. But the point is not just that 93% lose money, it is who the losers and winners are. Sebi data is clear: those losing money are individuals and another category of 'others,' under which NRIs, trusts, etc, are clubbed. Those making money also are in two categories. One is of foreign portfolio investors and the other is called 'proprietary.' These are large Indian set-ups that are probably using algorithmic trading or some other systems to trade. Interestingly, there are only a few hundred players registered under the proprietary and foreign portfolio investor groups, whereas those in loser categories number almost 10 million. Also Read: Andy Mukherjee: Jane Street's secret sauce for Indian markets should be tested out My own October analysis based on Sebi data ( showed that the few who profit are mostly institutions or sophisticated players. Retail traders, especially those from non-metro, lower-income or less-educated backgrounds, are the worst hit. Let's not glorify outliers. Clearly, when you pit human traders against machines, especially highly sophisticated algorithms, it's an uneven fight. Even without manipulation, the odds are stacked against retail traders. You're playing a zero-sum game where the big guys have better tools, data and speed. Even when some make money, it's peanuts. NSE data shows that among retail traders whose trading activity was profitable, the median annual gain was just ₹60,000. That's less than what a gig job earns. Even the late Rakesh Jhunjhunwala, when asked, 'Why do you ask people not to trade when you yourself made your initial capital as a trader?" had said, 'I smoke but I tell my children not to." Plus, when people like him and other big names in the Indian market made their money through trading, it was a different time and place, with many market inefficiencies leaving opportunities to be exploited, including some simple ones like the differential in prices of the same stocks across exchanges. That is no longer the case, with sophisticated real-time trading systems in place. Also Read: Jane Street: Gaming an outdated system is not necessarily illegal in India However, the Jane Street issue goes deeper into actual manipulation. With most trading strategies, the bigger you become, the harder it is to get returns. In fact, most people in the trading or algorithm business talk in terms of limits on how much money a strategy can be used for. Unlimited money cannot be deployed in normal opportunities to exploit market inefficiencies. But Jane Street was not only making more money as its size grew, its strategy was dependent solely on its volumes being large enough to move the market. That's a red flag. The Sebi order shows how it might have used its size to extract unfair profits. The game's profitability increased with scale, which shouldn't be the case in a competitive market. Some people think that if norms are tightened on derivatives trading, it will reduce volumes. Whether or not that happens, it's clear that volumes do need to be curbed. Derivatives trading volumes in India, after peaking at 400 times the cash market, are still about 230 times—more than five times the ratio in any other market in the world. India's market capitalization is less than 5% of the world's but the country accounts for about 60% of global derivatives volumes. Now we get to the interesting part. The high trading volumes in derivatives is a profit gravy train that a range of players over and above the traders themselves will find hard to get off. The higher the trading volumes, the more the profits for stock brokers and tech platforms. Then, with stock exchanges being listed or nearly listed, there is profitability pressure on them, which makes it tempting for them to keep trading volumes high. This creates a conflict of interest, as stock exchanges are the first-level regulators in the market. In a Jane Street type of scenario, a handful of entities displaying a pattern of actions at particular times on certain days should have first been visible to stock exchanges. Also Read: Sebi's Jane Street interim order made India's stock market sit up for good reason Not just capital market participants, even government coffers have been boosted by F&O volumes. As I wrote during the budget in February: India's personal income tax mop-up is expected to grow 14.4% in 2025-26, faster than nominal GDP. Corporate tax and GST are expected to grow 10.5% and 10.9%, respectively, which is why the budget projects an acceleration in personal income tax collections despite a cut in tax rates. And while Sebi might be trying to curb speculation, the government appears to be banking on it. It is easy to blame the regulator for not acting quickly. But in any case of manipulation, a detailed case has to be built that withstands legal scrutiny. Action can rarely be taken in real time. The author is founder of First Global and author of 'Money, Myths and Mantras: The Ultimate Investment Guide'. Her X handle is @devinamehra
Business Standard
09-07-2025
- Business
- Business Standard
Raamdeo Agrawal
Raamdeo Agrawal BSE at 150: India's stock market stands out globally, has grown stronger The market has faced its share of storms: from the 1992 scam to the global financial crisis. But like a sturdy bull, it has only grown stronger with each challenge Updated On : 09 Jul 2025 | 6:35 AM IST Rakesh Jhunjhunwala: The Bull of all seasons One of the best things about him was that he wanted people, his friends, and the masses at large, to make money, writes Raamdeo Agrawal of Motilal Oswal Financial Services Updated On : 14 Aug 2022 | 11:58 PM IST Wealth creators GUEST COLUMN Raamdeo Agrawal: A trillion-dollar opportunity India's GDP at $4-trn by 2025 may provide a springboard to discretionary spend Updated On : 05 Feb 2013 | 10:03 AM IST
Time of India
25-06-2025
- Business
- Time of India
Symbiotec Pharmalab plans IPO to boost specialty pharma market
Mumbai: Symbiotec Pharmalab , a global leader in manufacturing corticosteroid and hormone active pharmaceutical ingredients (APIs), is planning an initial public offering (IPO) in the next 12 months at a targeted valuation of about $1 billion, said people familiar with the matter. The Indore-based company has appointed Nomura, JM Financial , and Motilal Oswal as lead managers for the proposed IPO, which aims to raise ₹2,000-2,500 crore, and give a partial exit to existing private equity investors, the people said. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Play War Thunder now for free War Thunder Play Now Undo Motilal Oswal Private Equity (MOPE) and healthcare-focused PE firm InvAscent collectively hold about 72% stake in Symbiotec. MOPE, via its India Excellence Fund-III, owns 29%, and InvAscent, through Rosewood Investments, holds 42.67% as of March 31, 2024. The remaining 28% stake is held by the promoter Satwani family. The planned public issue underscores rising interest in speciality pharma firms. In 2023, another API-focused firm, Concord Biotech , raised ₹1,551 crore through an IPO. Backed by late investor Rakesh Jhunjhunwala, Concord currently has a market capitalisation of ₹18,528 crore, with its stock closing at ₹1,780.75 apiece on the BSE on Tuesday-well above its issue price of ₹741. Founded in 2002 by Anil Satwani, Symbiotec specialises in research, development, and manufacturing of corticosteroids and hormone APIs at facilities in Rau and Pithampur SEZ, Madhya Pradesh. The company is one of the largest independent firms in its category globally and has built a robust backward-integrated platform for steroid and hormone manufacturing. Live Events Symbiotec has also ventured into formulations, currently developing a portfolio of injectable products through its unit, Knovea Pharmaceuticals, which is setting up a dedicated factory in Madhya Pradesh to cater to regulated markets. Another group unit, Symbiotec Zenfold is building a fermentation facility for green nutraceuticals and pharmaceutical precursors. In FY25, Symbiotec reported a revenue of ₹800 crore and EBITDA of ₹250 crore, people said. During FY24, steroid APIs contributed 68% of revenue with hormones comprising the remainder. The company exports to more than 30 countries, including the US, Europe, and key Asian markets.
