Latest news with #VinitBolinjkar
Mint
07-07-2025
- Business
- Mint
Anil Ambani-owned stocks: Reliance Power, Reliance Infrastructure shares surge up to 125% in one year. More steam left?
Anil Ambani group stocks: The turnaround in Anil Dhirubhai Ambani group (ADAG) stocks — Reliance Power and Reliance Infrastructure — was not just limited to companies' financials but rubbed off on shareholders' wealth. From the brink of bankruptcy, both ADAG stocks have rebounded to profitability, helped by effective debt reduction and favourable sectoral dynamics. Reliance Power cleared ₹ 3,872 crore in obligations as a guarantor for Vidarbha Industries Power Ltd, eliminating most of the related debts and corporate guarantees. Meanwhile, Reliance Infrastructure significantly reduced its standalone external debt from ₹ 3,831 crore to ₹ 475 crore. Reliance Power share price has surged 125% from ₹ 29 to above ₹ 65 levels. Meanwhile, Reliance Infrastructure shares have not been far behind, recording an 87% jump in its value. The sharp rally in ADAG stocks has significantly boosted investor wealth. Vinit Bolinjkar Head of Research - Ventura, said Reliance Power's operating portfolio, totaling 5,305 MW, includes the 3,960 MW Sasan Power Ltd, the world's largest integrated coal-based power plant. The company is also accepting EPC orders for joint development of renewable energy projects, contributing to its improving financial performance. The same is reflected in the company's financials. For the last quarter of FY25, Reliance Power had swung to the black, posting a profit of ₹ 126 crore, as against a loss of ₹ 397.56 crore in Q4 FY24. Total income dipped to ₹ 2,066 crore in the fourth quarter from ₹ 2,193.85 crore in the same period a year ago. "With a strong outlook for the power sector and a fresh start following restructuring, investor confidence is on the rise," Boljinkar said. Anubhav Sangal, Sr. Research Analyst at Bonanza, said that Reliance Infra is seeing green shoots in revival through successful restructuring and debt reduction as well as bagging robust opportunities with the recent Dassault collaboration in the helm. These measures according to experts have fortified Reliance Infra's balance sheet, setting a solid foundation for future growth. "Beyond its power distribution operations in Delhi, the company is expanding into defence manufacturing infrastructure, including the Mumbai Metro project. A recent JV with the US-based Coastal Mechanics for MRO services in India, along with export orders from global defence companies, could drive enhanced future performance," according to Boljinkar. The company is also targeting ₹ 3,000 crore from the export of 155 mm ammunition and aggregates by the end of the financial year 2027, as per a PTI report. As per PTI sources, Reliance has been able to make inroads in the highly competitive markets of the European Union and South East Asia. Recently, Reliance Defence also announced a strategic partnership with Düsseldorf-based Rheinmetall AG. The collaboration between the companies will include the supply of explosives and propellants for medium and large calibre ammunition to Rheinmetall by Reliance. Reliance Infrastructure also posted a financial turnaround, reporting a net profit of ₹ 4,387 crore in the March quarter, mainly aided by a reduction in expenses. It had posted a net loss of ₹ 220.58 crore in the January-March period of 2023-24. Analysts remain largely positive on these ADAG stocks, expecting the trend to sustain, albeit the pace could slow down. "Both companies are entering a new chapter following their restructuring efforts, and their growth prospects are backed by strong industry trends and their deep expertise in their respective sectors, making this rally sustainable," said Boljinkar. Commenting on individual stocks, Sangal said we could still see space left for the valuation to go upwards for Reliance Power shares, however, at a slower pace than we saw earlier. For Reliance Infra, the analyst said, "We believe that Reliance Infrastructure is poised to see meaningful revenue visibility through current orders and potential future orders that will take reliance infra towards a meaningful value unlocking."
Mint
05-07-2025
- Business
- Mint
HDB Financial shares see strong action in listing week. Is it still a stock to buy?
HDB Financial share price: In a strong listing week action, HDB Financial share prices have offered the investors who bet on its initial public offering (IPO) with solid 14% returns in just three sessions. HDB Financial's share price had listed at a premium of 12.8% at ₹ 835 on both the BSE and NSE and extended gains to settle at over 13% gains above the IPO price of ₹ 740. While the stock gained on Thursday and took a breather on Friday, it managed to deliver over 14% gains during this period. HDB Financial shares' high stands at 891.65 while its low is at ₹ 827.50, which is still at a premium to the issue price. On the listing day itself, July 2, Emkay Global released an initiation coverage report on the HDFC Bank subsidiary, with a 'Buy' rating and a target price of ₹ 900 per share for June 2026. This signals another 7% upside in HDB Financial share price from current levels. Vinit Boljinkar, Head of Research at Ventura Securities, also believes the momentum in HDB Financial Services stock could continue to thrive in the long term. He lists three compelling factors that could sustain interest in HDB Financial shares: 1. Market Position: HDBFS is the fourth largest retail-focused NBFC in India, serving a robust retail customer base of 1.9 crore. 2. Strong Loan Growth: The company has demonstrated healthy loan book growth with a two-year CAGR of 23.5%, and with 73% of its loans secured. It has a lower risk profile compared to peers like Bajaj Finance, which stands at 60%. This secured loan base enhances its stability in the long run. 3. Parentage: As a subsidiary of HDFC Bank, HDBFS enjoys strong brand recognition, an extensive distribution network, and low-cost funding, which positions it for continued growth and profitability. Brokerage Emkay Global also suggests three strong fundamental factors behind its bullish stance, ranging from its diversified operations (geographically and produce-wise); its strategy to focus on direct sourcing (~82% of FY25 disbursements), remote areas (70% branches are in tier 4 towns and beyond), and low-to-mid-income groups; and a favourable interest rate cycle amid frontloaded repo rate cuts, making HDB Financial well positioned to improve profits and growth. Commenting on the strategy for retail investors regarding HDB Financial shares, Vinit Bolinjkar recommended a 'HOLD' strategy for long-term gains. Strong retail market position, production diversification and valuation advantage are some of the factors behind his view. At an FY25 P/B of 3.2x, HDB Financial shares trade at a lower multiple compared to Bajaj Finance (5.85x), offering a potential valuation gap for investors to capitalise on. From the NBFC space, his top picks remain Bajaj Finance and HDB Financial based on growth potential, low NPAs, and strong backing. However, for risk-averse investors, Cholamandalam and Shriram Finance may be attractive due to their lower valuations, he added. Disclaimer: This story is for educational purposes only. 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.
Economic Times
02-07-2025
- Business
- Economic Times
Paytm karo or think twice: From 164% surge to 9% H1CY25 slide, will it be a comeback story in H2?
One 97 Communications' stellar run of 2024 is hit by H1CY25 wall with Paytm shares falling 9% this year so far after a 164% rally from the lows of Rs 403. With regulatory challenges likely behind, the stock offers its share of opportunities and challenges, opine experts. ADVERTISEMENT The stock is currently down 12% from its 52-week high of Rs 1,062.95 and offers opportunities to investors to make a move. Vinit Bolinjkar, Head of Research at Ventura has recommended a 'Buy' on the counter for long-term gains. With one of the largest merchant base, Paytm is effectively leveraging its financial services vertical, he said. Moreover, robust device deployments and a scalable technology infrastructure, is making Paytm a preferred payment partner for merchants. This analyst sees the company regaining momentum further in its Monthly Transacting User (MTU) base, which could drive growth in GMV and revenue. Brokerage firm Motilal Oswal Financial Services (MOFSL) has raised the price target to Rs 1,000 notwithstanding a 'Neutral' stance on the counter. Technically, the stock remains set to reclaim levels of Rs 980, said Nilesh Jain, Head Vice President, Equity Research Technical and Derivatives at Centrum Broking. The stock is gradually moving higher and can be 'Added' in multiple tranches or be bought on declines, he opined. Its underperformance is despite an 8% YTD rise in Nifty. The headline index is nearly 3% lower from its all-time high of 26,277.35. ADVERTISEMENT The fintech company founded by Chairman and CEO Vijay Shekhar Sharma had reported a consolidated net loss of Rs 540 crore in Q4FY25 versus Rs 550 crore reported in the year ago period. While the loss was attributable to the owners of the parent, it included exceptional items. Excluding the exceptional items, the net loss stood at Rs 23 crore in the quarter under review. The exceptional items for Q4 FY25 stood at Rs 522 crore which includes Rs 492 crore charge towards acceleration of ESOP expense and Rs 30 crore towards other impairments. ADVERTISEMENT Bolinjkar attributes the price sluggishness to the slower-than-expected recovery in MTUs during Q4FY25, which stood at 72 million witnessing a decline from 100 million in Q3FY24 to 70 million in Q3FY25."This was further compounded by a significant reduction in UPI incentives for FY25, driven by a shift in government funding priorities and the transition to a more market-driven pricing model for digital payments. Additionally, uncertainties surrounding the MDR issue negatively impacted overall market sentiment, contributing to the decline in stock price," he added. ADVERTISEMENT Paytm shares have had their snakes & ladder moments since its listing in November 2021. The stock was listed at a 9% discount over the issue price of Rs 2,150. On Tuesday, the stock finished at Rs 930, down 52% from the listing price of Rs 1,950. The Reserve Bank of India's (RBI) tightening screws on low-ticket lending in 2023 followed by restrictions on Paytm Payments Bank (PPBL) in January 2024 were big setbacks. ADVERTISEMENT Paytm's merchant base grew 8% YoY to 44 million in Q4FY25, with device deployments up 16% YoY to 12.4 million. This expanding ecosystem drives recurring transaction volumes and deeper engagement, positioning Paytm for sustained GMV and revenue is projected to grow at a 23% CAGR over FY25-28E, while disbursement volumes (loans) are estimated to accelerate at 35% CAGR. This indicates Paytm's payments and lending businesses are both scaling rapidly, fueling overall revenue momentum, MPFSL said in a financial services segment (including merchant and consumer loans) is expected to grow revenue at a 26% CAGR, increasing its contribution to Paytm's total revenue by over 250 basis points to 27% by FY28E, said this brokerage. This shift towards higher-margin financial services will enhance growth is likely to accelerate through cross-selling financial products, particularly short-term and low-ticket size loans, to existing MTUs and merchants, Bolinjkar of Ventura diversified revenue streams and disciplined cost control — including rationalized marketing expenses and AI-led efficiencies — contribution margins are expected to rise steadily, reaching 58% by FY28E, laying a clear path toward sustainable EBITDA is on track for EBITDA breakeven by FY26E. Adjusted EBITDA is expected to swing positive in FY26 and improve sharply thereafter, with estimated PAT reaching Rs 1,620 crore by FY28E, this brokerage said. This inflection supports investor confidence in a profitable growth Bolinjkar anticipates a swift recovery in the MTU base following the resumption of onboarding new UPI customers after NPCI's approval in October 2024. The recovery took 3-4 months of H2FY25 to regain customer confidence, with FY26 expected to see a rebound in the MTU base, he notes headwinds in the form of the fast-evolving digital payment industry, a decline in UPI market share and regulatory risks like the recent government disapproval of MDR on UPI transactions. (Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times) (You can now subscribe to our ETMarkets WhatsApp channel)
Time of India
02-07-2025
- Business
- Time of India
Paytm karo or think twice: From 164% surge to 9% H1CY25 slide, will it be a comeback story in H2?
One 97 Communications' stellar run of 2024 is hit by H1CY25 wall with Paytm shares falling 9% this year so far after a 164% rally from the lows of Rs 403. With regulatory challenges likely behind, the stock offers its share of opportunities and challenges, opine experts. The stock is currently down 12% from its 52-week high of Rs 1,062.95 and offers opportunities to investors to make a move. Vinit Bolinjkar, Head of Research at Ventura has recommended a 'Buy' on the counter for long-term gains. With one of the largest merchant base, Paytm is effectively leveraging its financial services vertical, he said. Moreover, robust device deployments and a scalable technology infrastructure, is making Paytm a preferred payment partner for merchants. This analyst sees the company regaining momentum further in its Monthly Transacting User (MTU) base, which could drive growth in GMV and revenue. Brokerage firm Motilal Oswal Financial Services (MOFSL) has raised the price target to Rs 1,000 notwithstanding a 'Neutral' stance on the counter. Technically, the stock remains set to reclaim levels of Rs 980, said Nilesh Jain, Head Vice President, Equity Research Technical and Derivatives at Centrum Broking. The stock is gradually moving higher and can be 'Added' in multiple tranches or be bought on declines, he opined. Its underperformance is despite an 8% YTD rise in Nifty . The headline index is nearly 3% lower from its all-time high of 26,277.35. What's ailing bulls? The fintech company founded by Chairman and CEO Vijay Shekhar Sharma had reported a consolidated net loss of Rs 540 crore in Q4FY25 versus Rs 550 crore reported in the year ago period. While the loss was attributable to the owners of the parent, it included exceptional items. Excluding the exceptional items, the net loss stood at Rs 23 crore in the quarter under review. The exceptional items for Q4 FY25 stood at Rs 522 crore which includes Rs 492 crore charge towards acceleration of ESOP expense and Rs 30 crore towards other impairments. Bolinjkar attributes the price sluggishness to the slower-than-expected recovery in MTUs during Q4FY25, which stood at 72 million witnessing a decline from 100 million in Q3FY24 to 70 million in Q3FY25. "This was further compounded by a significant reduction in UPI incentives for FY25, driven by a shift in government funding priorities and the transition to a more market-driven pricing model for digital payments. Additionally, uncertainties surrounding the MDR issue negatively impacted overall market sentiment, contributing to the decline in stock price," he added. Paytm shares have had their snakes & ladder moments since its listing in November 2021. The stock was listed at a 9% discount over the issue price of Rs 2,150. On Tuesday, the stock finished at Rs 930, down 52% from the listing price of Rs 1,950. The Reserve Bank of India's ( RBI ) tightening screws on low-ticket lending in 2023 followed by restrictions on Paytm Payments Bank (PPBL) in January 2024 were big setbacks. 5 triggers for Paytm shares 1) Strong merchant ecosystem expansion Paytm's merchant base grew 8% YoY to 44 million in Q4FY25, with device deployments up 16% YoY to 12.4 million. This expanding ecosystem drives recurring transaction volumes and deeper engagement, positioning Paytm for sustained GMV and revenue growth. 2) Robust GMV and disbursement growth outlook GMV is projected to grow at a 23% CAGR over FY25-28E, while disbursement volumes (loans) are estimated to accelerate at 35% CAGR. This indicates Paytm's payments and lending businesses are both scaling rapidly, fueling overall revenue momentum, MPFSL said in a note. 3) Financial services revenue, a key driver The financial services segment (including merchant and consumer loans) is expected to grow revenue at a 26% CAGR, increasing its contribution to Paytm's total revenue by over 250 basis points to 27% by FY28E, said this brokerage. This shift towards higher-margin financial services will enhance profitability. Revenue growth is likely to accelerate through cross-selling financial products, particularly short-term and low-ticket size loans, to existing MTUs and merchants, Bolinjkar of Ventura said. 4) Contribution margin expansion Through diversified revenue streams and disciplined cost control — including rationalized marketing expenses and AI-led efficiencies — contribution margins are expected to rise steadily, reaching 58% by FY28E, laying a clear path toward sustainable EBITDA profitability. 5) Clear path to profitability & earnings inflection Paytm is on track for EBITDA breakeven by FY26E. Adjusted EBITDA is expected to swing positive in FY26 and improve sharply thereafter, with estimated PAT reaching Rs 1,620 crore by FY28E, this brokerage said. This inflection supports investor confidence in a profitable growth trajectory. 6) MTU recovery Ventura's Bolinjkar anticipates a swift recovery in the MTU base following the resumption of onboarding new UPI customers after NPCI's approval in October 2024. The recovery took 3-4 months of H2FY25 to regain customer confidence, with FY26 expected to see a rebound in the MTU base, he added. Why think before 'Paytm Karo' MOFSL notes headwinds in the form of the fast-evolving digital payment industry, a decline in UPI market share and regulatory risks like the recent government disapproval of MDR on UPI transactions. ( Disclaimer : Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
Economic Times
30-06-2025
- Business
- Economic Times
India Inc's interest coverage ratio rises to a 3-year high on margin improvement , lower interest expenses
However, any improvement in interest coverage will also depend on trend in corporate profitability. Synopsis Indian companies showed strong financial health. The interest coverage ratio reached a 12-quarter high in March 2025. This was due to better profit margins and lower interest costs. Operating margins improved because of cheaper raw materials. Earnings before interest and taxes grew faster than interest expenses. Corporate profitability and lending rates will influence future interest coverage. ET Intelligence Group: India Inc's interest coverage ratio hit a 12-quarter high of 5.8% at the aggregate level in the March 2025 quarter helped by margin improvement and lower interest expenses. It has shown improvement in two quarters in a row after hitting a low of 4.8% in the September 2024 quarter. The ratio, which is obtained by dividing operating profit (EBIT) by interest expense, reflects a company's ability to service outstanding debt; higher the ratio, the better it is. The data pertains to a common sample of 2,658 companies that have declared results for each of the past 13 quarters excluding banking and finance companies. ADVERTISEMENT In March quarter, companies in select sectors reported improved profitability owing to benign raw material costs. The sample's operating margin rose by 110 bps year-on-year to 15.3%. "In Q4, operating margins improved, driven by a decline in input costs and easing inflation. Lower global crude prices and reduced raw material expenses supported profitability across several sectors," said Vinod Nair, research head, Geojit Investments. He said the trend enhanced operational efficiency, in manufacturing and consumption-linked industries. The sample's EBIT grew at a faster rate year-on-year than interest outgo in each of the two quarters to March 2025. EBIT rose by 12.7% vs 6.8% increase in interest outgo for March quarter. "Many companies benefited from a moderation in input costs, with the most significant savings reported in raw material expenses," said Vinit Bolinjkar, head of research, Ventura, adding that relief in commodity prices played a crucial role. Barring the September 2024 quarter, the sample's interest coverage ratio has remained above 5% in each of the quarters in the past two years. Interest outgo of corporates is likely to soften in the coming quarter given the reduction in lending rates in the economy. However, any improvement in interest coverage will also depend on trend in corporate profitability. (You can now subscribe to our ETMarkets WhatsApp channel) Nikita Papers IPO opens on May 27, price band set at Rs 95-104 per share Nikita Papers IPO opens on May 27, price band set at Rs 95-104 per share Why gold prices could surpass $4,000: JP Morgan's bullish outlook explained Why gold prices could surpass $4,000: JP Morgan's bullish outlook explained Cyient shares fall over 9% after Q4 profit declines, core business underperforms Cyient shares fall over 9% after Q4 profit declines, core business underperforms L&T Technology Services shares slide 7% after Q4 profit dips L&T Technology Services shares slide 7% after Q4 profit dips Trump-Powell standoff puts U.S. Rate policy in crosshairs: Who will blink first? Trump-Powell standoff puts U.S. Rate policy in crosshairs: Who will blink first? SEBI warns of securities market frauds via YouTube, Facebook, X and more SEBI warns of securities market frauds via YouTube, Facebook, X and more API Trading for All: Pi42 CTO Satish Mishra on How Pi42 is Empowering Retail Traders API Trading for All: Pi42 CTO Satish Mishra on How Pi42 is Empowering Retail Traders Security, transparency, and innovation: What sets Pi42 apart in crypto trading Security, transparency, and innovation: What sets Pi42 apart in crypto trading Bitcoin, Ethereum, or Altcoins? How investors are structuring their crypto portfolios, Avinash Shekhar explains Bitcoin, Ethereum, or Altcoins? How investors are structuring their crypto portfolios, Avinash Shekhar explains The rise of Crypto Futures in India: Leverage, tax efficiency, and market maturity, Avinash Shekhar of Pi42 explains NEXT STORY
