Varun Beverages Ltd. (VBL) is one of the largest franchisees of PepsiCo globally. It is valued at Rs 85,000 crore and is involved in the production and distribution of a broad range of carbonated soft drinks, non-carbonated soft drinks, and packaged drinking water. Pepsi, Mirinda, Mountain Dew, and Tropicana Juices are some of the top brands sold by the company. 

The shares of the beverage company fell as much as 5.86% to Rs 1,266.85 during the first half of the trading session on Thursday. However, the stock regained some of its losses and closed at Rs 1,306.15 per share, down 2.94% for the day.

In the last 12 months, the stock has surged giving a multi-bagger gain of 107% to its investors. Thus Rs 1,00,000 invested a year ago in the company would have become Rs 2,07,000 by now, resulting in profits of Rs 1,07,000 for the investors. 

The management of the company is bullish on the Indian soft drinks market as it expects substantial growth led by a multitude of factors such as fast urbanization, rising income & expenditure levels, rural development, and electrification.

The analysts at the domestic brokerage firm Share khan by BNP Paribas opinionated, “Management was optimistic about achieving strong revenue growth in the upcoming season as inventory created for the summer season has already been exhausted. This might lead to higher volume growth compared to the company’s near aspiration in Q1CY2023 and Q2CY2023.” 

The company has plans to expand its capacity by 30% and distribution capabilities by 10% in the near future. Along these lines, the brokerage anticipates a revenue and PAT growth of 18% and 25% over the CY2022-CY2024E period. 

Multiple brokerage firms have initiated positive ratings on the stock of VBL with varied price targets.

When looking for quick financing options, personal loans often come into our minds due to its unsecured nature, no end use restriction and quicker disbursals. While these loans are easy to avail, their applicants need to factor in their EMI affordability and the optimum loan tenure before making the loan application. The best way to find your optimum loan tenure or EMI is to use a personal loan EMI calculator. Following are a few more points elaborating on the benefits of using a personal loan EMI calculator before applying for a personal loan.

1. Quick and Accurate Calculation of EMIs

The mathematical formula for calculating EMI on a personal loan is [P x R x (1+R)^N]/[(1+R)^N-1], where ‘P’ is the Principal Amount; ‘R’ is the Rate of Interest and ‘N’ is the Tenure (in months). Prospective personal loan applicants can use this formula to estimate EMIs on their personal loans manually. However, such manual calculations can be complex and time-consuming. Prospective personal loan applicants could be at it for hours if it were to be done repeatedly for different sets of values. Also, with manual calculations there is always a chance of making errors, thereby, making it even more important to use a personal loan EMI calculator. Using a personal loan calculator for EMI calculation will not only help prospective personal loan applicants avoid complex mathematical calculations but also generate accurate results in just a second.

2. Estimated cost of borrowing

Most personal loan EMI calculators not only calculate the EMI amount but also the total interest payable and the total loan amount payable, i.e. the sum of principal amount and interest payable. This helps borrowers to estimate the total interest cost of the loan. However, when considering the cost of borrowing, borrowers should remember to factor in the processing fee, which also contributes to their overall cost of the loan. If the borrower is planning to prepay/foreclose the loan, then prepayment/foreclosure charges should also be considered when evaluating the total cost of borrowing. However, the borrower in such cases should use APR calculator to find the overall cost of borrowing after factoring in processing fee, documentation charges or other related fees and charges.

3. Determine Optimum Tenure

Determining the optimum loan tenure (or repayment period) for a personal loan depends on your financial goals, budget, and individual circumstances. There’s no one-size-fits-all answer, as the right tenure varies from person to person. Here are some factors to consider when determining the optimum tenure for your personal loan:

1. Monthly Budget and Cash Flow: Assess your monthly income and expenses to determine how much you can comfortably allocate toward loan repayments. A shorter tenure results in higher monthly EMIs, while a longer tenure leads to lower EMIs. Choose a tenure that aligns with your budget.
2. Interest Rate: Consider the interest rate on your loan. A shorter tenure may have a lower overall interest cost because you pay interest for a shorter period. However, it will also result in higher monthly payments. A longer tenure may have a higher overall interest cost but lower monthly payments.
3. Loan Purpose: The purpose of the loan can influence the tenure. For essential needs with a specific timeframe, such as education expenses, choose a tenure that matches the goal’s duration. For general-purpose loans, you can align the tenure with your budget.
4. Loan Amount: A larger loan amount may require a longer tenure to maintain manageable EMIs. However, a shorter tenure can be chosen for smaller loan amounts.
5. Financial Goals: Consider your short- and long-term financial goals. A shorter tenure allows you to pay off the loan faster, reducing financial stress. A longer tenure may free up cash for other investments or goals, but it may lead to higher interest costs.
6. Prepayment Flexibility: Check if the lender allows prepayment without penalties. If prepayment is possible, you can choose a longer tenure for lower EMIs and then make additional payments when you have surplus funds.
7. Age and Retirement Plans: Consider your age and retirement plans. A longer loan tenure may extend into your retirement years, impacting your post-retirement financial stability.
8. Job Stability: Assess your job stability and income prospects. If you anticipate a higher income in the future, you may opt for a shorter tenure.
9. Total Interest Cost: Use an EMI calculator to compare the total interest cost for different tenures. This can help you make an informed decision.
10. Risk Tolerance: Evaluate your risk tolerance. A shorter tenure may have higher EMIs but lower total interest costs, while a longer tenure spreads the cost over a more extended period.

Remember that there are trade-offs between loan tenure and monthly payments. Shorter tenures mean higher monthly payments but lower overall interest costs. Longer tenures result in lower monthly payments but higher overall interest costs.

Ultimately, the optimum loan tenure is one that allows you to comfortably manage loan payments while achieving your financial goals. It’s advisable to discuss your options with a financial advisor or loan officer who can provide personalized guidance based on your specific situation.

Tenure is one of the major factors that influences personal loan EMI amount and the total interest cost. Longer tenure results in lower EMI, which increases borrowers’ EMI affordability and also allows them to accommodate more of their planned and unplanned expenses besides their monthly contributions towards their crucial financial goals. Shorter loan tenure, on the other hand, increases the EMI payments, allowing borrowers to close their personal loans faster. While longer tenure increases the overall interest payout, a shorter tenure reduces it. For determining the optimum tenure for your personal loan, borrowers can calculate personal loan EMI for different sets of values using the EMI calculator and then, take a decision accordingly.

4. EMI Affordability

Determining the affordability of an Equated Monthly Installment (EMI) is a crucial step before taking on any loan, as it ensures that you can comfortably manage your loan payments without straining your finances. Here are steps to assess EMI affordability:

1. Evaluate Your Monthly Budget:
   • Begin by reviewing your monthly income and expenses. Calculate your net disposable income, which is the amount left after deducting all essential expenses like rent/mortgage, groceries, utilities, insurance, and transportation.
2. Understand Your Debt Obligations:
   • Take stock of your existing debt obligations, such as credit card payments, existing loans, and any other financial commitments. Consider how much of your income is already allocated to servicing debt.
3. Determine a Comfortable EMI Percentage:
   • A general rule of thumb is to limit your total monthly debt obligations, including the new EMI, to around 30-40% of your net income. This ensures that you have enough room in your budget for other essential expenses and savings.
4. Use an EMI Calculator:
   • Utilize an online EMI calculator provided by banks or financial websites. Input the loan amount, interest rate, and various loan tenure options to estimate the EMIs for different durations.
5. Consider Future Expenses:
   • Think about any upcoming major expenses or changes in your financial situation. This could include planned vacations, education expenses, or potential changes in income.
6. Emergency Fund and Savings:
   • Ensure that you can maintain or build an emergency fund and continue saving for future goals even after taking on the loan.
7. Account for Fluctuating Interest Rates:
   • If you are considering a variable interest rate loan, factor in potential interest rate fluctuations. Ensure that you can afford higher EMIs if interest rates rise.
8. Plan for Prepayments:
   • Determine whether you can make occasional prepayments to reduce the loan balance and shorten the loan tenure. This can save on interest costs.
9. Seek Professional Advice:
   • Consult with a financial advisor or loan officer who can provide personalized guidance based on your financial situation and goals.
10. Choose the Right Tenure:
    • Select a loan tenure that aligns with your budget and financial goals. Remember that shorter tenures have higher EMIs but lower overall interest costs, while longer tenures have lower EMIs but higher overall interest costs.
11. Avoid Overcommitting:
    • Be cautious not to overcommit to a high EMI that leaves you with insufficient funds for daily living expenses or other financial goals.
12. Consider Loan Protection Insurance:
    • Loan protection insurance can provide coverage in case of unforeseen events like job loss or disability. It can provide peace of mind when taking on a significant loan.

It’s essential to strike a balance between borrowing what you need and ensuring that you can comfortably manage the EMI payments. Avoid stretching your finances to the limit, as unexpected expenses or changes in your financial situation can affect your ability to meet your loan obligations. Always make an informed decision by considering your current financial position and future financial goals.

Lenders prefer approving personal loan applications of those having total EMI obligations, including EMI of the proposed personal loan, are within 50-60% of their net monthly income. Using Personal Loan EMI Calculator will give the prospective borrowers an estimate of their EMIs. This will allow applicants exceeding the aforementioned limit to take steps to reduce their EMIs and increase their chances of personal loan approval. One of the ways to reduce your personal loan EMI is to opt for longer loan tenure. Choosing longer tenure will reduce the monthly payouts and thereby, contain borrower’s total EMI obligations within 50-60% of their net monthly income.

5. Financial Planning

The EMIs for fixed rate personal loans remain the same throughout the loan tenure, which helps prospective borrowers in planning for their finances with higher certainty. The EMIs of floating rate personal loans, on the other hand, may change during the loan tenure due to change in the linked external benchmark rates. However, in such cases too, prospective borrowers can use a personal loan EMI calculator to get a rough idea on their loan EMIs and keep a provision  in their monthly budget to accommodate the increase in the personal loan interest rates, if need be.

When planning for their loan repayment, prospective borrowers must avoid compromising their monthly contributions towards emergency funds and crucial financial goals. As doing so may force you to liquidate your investments and/or avail a new loan at higher interest rates to deal with financial exigencies, if any, or to meet the unavoidable financial goals.

Note that your emergency fund should cover your unavoidable expenses including your utility bills, rent, existing loan EMIs, SIPs, insurance premiums, etc. for at least 6 months. Thus, prospective borrowers should also factor in their estimated personal EMIs towards their emergency funds. This would save them from the risk of loan defaults during financial emergencies or periods of loss of income arising from job loss, illness, disability, etc. Delays or defaults in your personal loan repayment would not only attract penal interest and other related charges, but can also adversely affect your credit score, which would further impact future loan or credit card eligibility.

Importance of Using an EMI Calculator in Getting a Personal Loan

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The G20 (Group of Twenty) is an international forum consisting of 19 individual countries and the European Union. It was established to promote international economic cooperation and policy coordination among its member countries. The G20 represents a diverse group of major economies from different regions of the world. Here are key points about the G20 summit:

1. Member Countries: The G20 consists of the following member countries:
2. History: The G20 was created in 1999 in response to financial crises in the late 1990s, with the inaugural summit held in 2008 during the global financial crisis. It has since become a key forum for addressing global economic issues.
3. Agenda: The G20 agenda covers a wide range of economic and financial topics, including monetary policy, fiscal policy, trade, development, sustainable development, climate change, and more. Each year, the host country sets the summit’s agenda, with input from member countries.
4. Declaration: At the end of each G20 summit, leaders typically issue a joint declaration summarizing their discussions and outlining agreed-upon actions or policy commitments. These declarations guide member countries’ policies and actions in the following year.

The G20 is a critical forum for international cooperation on economic and financial matters, and it plays a central role in addressing global challenges and promoting policy coordination among major economies. The outcomes of G20 summits can have significant impacts on global economic and political developments.

And since that day, the vibes between India and Canada have taken a nosedive.

So, where did it all begin?

It started with the tragic killing of Hardeep Singh Nijjar in Canada. But who exactly was Hardeep Singh Nijjar?

Well, he became a big name in the pro-Khalistan movement in Canada after moving there in 1996. He played a key role in groups like Sikhs for Justice and even founded the Khalistan Tiger Force (KTF).

The Khalistan Tiger Force (KTF) is a Sikh separatist militant organization that seeks to establish an independent Sikh state called Khalistan in the Punjab region of India. The organization advocates for the secession of Punjab from India and the creation of an independent Sikh homeland. It was founded in the early 1980s during a period of violence and turmoil in Punjab.

Key points about the Khalistan Tiger Force:

1. Origins: The KTF emerged during the peak of the Khalistan movement in the 1980s, which sought to establish a separate Sikh state. The movement was triggered by political and religious tensions, including demands for greater Sikh autonomy and political representation.
2. Leadership: Jagtar Singh Hawara, a prominent figure in the Sikh militant movement, is believed to have been one of the leaders of the Khalistan Tiger Force. The organization has had several leaders and factions over the years.
3. Activities: The KTF has been involved in acts of violence, including bombings, assassinations, and other terrorist activities, aimed at achieving its goal of Khalistan’s independence. Its activities have primarily targeted Indian security forces and government officials.
4. Banned Organization: The Khalistan Tiger Force, along with several other Sikh militant groups, has been banned by the Indian government, and its activities are considered illegal.
5. International Implications: The KTF has been a source of concern for both the Indian and international governments due to its involvement in terrorism. The group has been designated as a terrorist organization by multiple countries and is considered a threat to India’s national security.
6. Decline: In the years following the 1990s, the influence and activities of the Khalistan Tiger Force have declined significantly. Indian security forces have taken measures to combat Sikh militancy, resulting in the capture or killing of many KTF leaders and operatives.

It’s important to note that the Khalistan Tiger Force represents a particular perspective within the broader Sikh community and does not reflect the views or goals of all Sikhs. The majority of Sikhs in India and around the world are not associated with or supportive of militant separatist movements. Efforts have been made to address the underlying political and social issues that led to the rise of such groups through dialogue and peaceful means.

Decades later, India labelled the KTF a terrorist organisation, saying it received financial and logistical support from foreign sources to carry out terrorist activities in India. This was the reason why Indian authorities were behind Nijjar for years officially declaring him a terrorist in 2020.

Yes, the Khalistan Tiger Force (KTF) is considered a terrorist organization by the Indian government and has been banned under anti-terrorism laws. The organization is known for its involvement in acts of terrorism, violence, and insurgency with the aim of establishing an independent Sikh state called Khalistan in the Punjab region of India.

The KTF has been responsible for various terrorist activities, including bombings, assassinations, and attacks targeting Indian security forces and government officials. As a result, it is classified as a terrorist organization, and its activities are illegal under Indian law.

Additionally, the KTF has been designated as a terrorist organization by multiple countries and is subject to international counterterrorism efforts. The Indian government and other governments have taken measures to combat the activities of the KTF and other Sikh militant groups to maintain national security and public safety.

In 2018, his name was added to a list of wanted criminals handed to Canadian Prime Minister Justin Trudeau. And in June, Nijjar was shot dead in Canada by gunmen who were not related to India at all.

But now, Justin Trudeau accused India of involvement in the killing of Hardeep Singh Nijjar in Canada. Following his statement, an Indian diplomat named Pavan Kumar Rai was expelled.

In response, India lost its cool, and ordered a senior Canadian diplomat, Olivier Sylvestere, to leave the country, in a tit-for-tat move.

However, the financial connections between India and Canada are pretty strong from both sides.

1. Investments between the two countries have risen significantly to Rs. 2.24 lakh crore in 2022, a 37% increase in just four years.

2. Over 600 Canadian companies operate in India, and more than 1,000 Canadian companies are actively doing business in the Indian market.

3. There are over 3.19 lakh Indian students in Canadian institutions, contributing $4.9 billion to the Canadian economy, making India the largest source of foreign students, according to the latest data from various sources.

4. India’s total exports to Canada were worth $4,109.74 million in FY23, which was about 0.9% of India’s total exports ($450,958.43 million) last FY.

Whereas India’s total imports from Canada in FY23 reached $4,051.29 million, making up nearly 0.6% of India’s total imports of $714,042.45 million in FY22.

5. Canada exported goods and services worth Rs. 71,700 crores including commodities like lentils, timber, metallurgical coal and newsprint to India, and India’s primary exports have been smartphones, railway cars, pharmaceuticals, gems and jewellery, textiles, and machinery.

Now, the big question is – Will there be any impact on the growing economic relationship between the two countries?

Well, there’s been some impact already on the economic side. Canada called for a pause on talks about the free trade agreement, which was supposed to happen this year, because of political concerns. These tensions could potentially disrupt plans to boost trade and investment between the two nations.

But here’s the twist: Experts don’t think these fresh tensions will hurt trade and investments much. That’s because the economic relationship is mainly driven by commercial interests, not politics.

India and Canada do not deal in similar products, which means their trade relationships may not be affected by these recent events.

What went wrong between India and Canada? Check the details! 

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it’s essential to verify the latest data and news from reliable sources for a more up-to-date analysis. Here are some key areas to consider:

1. Financial Analysis:

• Revenue and Profitability: Review the company’s revenue growth over the past few years. Analyze trends in profitability, including operating margins and net profit margins.
• Balance Sheet: Examine the company’s balance sheet to assess its liquidity, leverage, and solvency. Look at the debt-to-equity ratio and current assets versus current liabilities.
• Cash Flow: Study the company’s cash flow statements to understand its ability to generate cash from operations and its capital expenditure requirements.
• Earnings per Share (EPS): Evaluate the historical EPS growth and any recent changes in the number of outstanding shares.
• Dividends: Assess the company’s dividend history, payout ratio, and dividend growth rate.

2. Future Plans and Strategy:

• Management Commentary: Read statements from the company’s management regarding its strategic goals, expansion plans, and key initiatives.
• Product Diversification: Understand if the company plans to diversify its product portfolio or expand into new markets.
• Investment in Research and Development: Investigate whether Havells is investing in research and development to stay competitive and innovate.

3. Industry Analysis:

• Market Position: Evaluate Havells’ position in the electrical equipment industry. Consider its market share and competitiveness compared to other key players.
• Industry Trends: Assess current trends in the electrical equipment industry, such as demand for energy-efficient products, smart technology integration, and sustainability.
• Regulatory Environment: Understand how regulatory changes and government policies may affect the industry and Havells’ operations.

4. Competitive Positioning:

• Competitors: Identify Havells’ main competitors and their strengths and weaknesses. Compare Havells’ products, pricing, and market presence to those of its competitors.
• Market Share: Analyze the company’s market share in its core segments and regions.

5. Valuation:

• Price-to-Earnings (P/E) Ratio: Compare Havells’ P/E ratio to industry averages and historical levels to assess whether the stock is undervalued or overvalued.
• Discounted Cash Flow (DCF) Analysis: Consider performing a DCF analysis to estimate the intrinsic value of Havells’ stock based on future cash flows.

6. Risks:

• Market Risks: Identify potential risks such as economic downturns, changes in consumer preferences, and competitive pressures.
• Regulatory Risks: Evaluate regulatory risks that may impact the company’s operations and compliance.
• Supply Chain Risks: Assess any supply chain vulnerabilities that could affect production and distribution.

7. News and Updates:

• Stay updated with the latest news, quarterly reports, and announcements from Havells India Limited.

Remember that a comprehensive fundamental analysis should combine quantitative and qualitative factors to provide a well-rounded view of the company. Additionally, it’s advisable to consult with financial experts or analysts who specialize in the industry for a more detailed assessment.

Fundamental Analysis of Havells India: In an age where technology permeates every aspect of our lives, the role of electrical appliances cannot be overstated. We humans are intertwined with this form of energy & it becomes impossible to imagine life without electricity.

Today we talk about a Company that manufactures the appliances that make our lives better, harnessing this energy. Herein, we are going to perform a fundamental analysis of Havells India.

Fundamental Analysis of Havells India

Today we will take a look at the scale of the Company’s operations, understand its business segments, and learn about the developments in the Consumer durable industry before we do the fundamental analysis of Havells India Financials & arrive at a conclusion.

Company Overview

Havells is a Fast Moving Electrical Goods (FMEG) Company, founded by Late Sh. Qimat Rai Gupta. He set up an electrical goods shop at the electrical market of Bhagirath Palace in Delhi. The Company is currently headed by Anil Rai Gupta, as its Chairman and Managing Director.

Havells India has a global footprint in 60+ countries & a network of 17,000+ dealers. It has manufacturing operations in 15 plants spread across India. It houses brand names like Havells, LLOYD, Crabtree, Standard, REO & Havells Studio.

Segment Analysis

Segment analysis involves breaking down a company’s financial and operational performance into different segments or divisions to gain insights into how each segment contributes to the overall business. This type of analysis is valuable for investors, analysts, and company management because it helps identify areas of strength or weakness within the organization. Here’s a step-by-step guide on how to conduct segment analysis:

1. Identify Business Segments:

• Start by identifying the various segments or divisions of the company. These segments can be based on product lines, geographic regions, customer types, or any other meaningful categorization.

2. Gather Financial Data:

• Collect financial data for each business segment. This includes revenue, operating profit, expenses, and any other relevant financial metrics. Ensure that the data is consistent and accurately allocated to each segment.

3. Analyze Revenue Contribution:

• Determine the contribution of each segment to the company’s total revenue. This will help identify which segments are the main revenue drivers.

4. Profitability Analysis:

• Assess the profitability of each segment by analyzing its operating profit margin, gross margin, and net profit margin. Identify which segments are the most profitable and which may need improvement.

5. Growth Rates: 

• Compare the revenue growth rates of each segment over time. Identify segments that are growing rapidly and those that are stagnant or declining.

6. Segment Trends:

• Look for trends within each segment. Are there shifts in customer preferences, competitive dynamics, or market conditions affecting specific segments?

7. Segment Assets and Liabilities:

• Analyze the segment’s assets and liabilities. This includes understanding the capital investments, working capital requirements, and debt obligations associated with each segment.

8. Return on Investment (ROI):

• Calculate the ROI for each segment by dividing its operating profit by the invested capital. This helps determine which segments are generating the highest returns relative to their capital investments.

9. Market Share:

• Evaluate the market share of each segment within its respective industry or market. This can provide insights into the segment’s competitive position.

10. Risk Assessment: – Identify specific risks and challenges associated with each segment. This could include regulatory risks, market volatility, or supply chain vulnerabilities.

11. Allocation of Corporate Expenses: – Consider how corporate expenses, such as administrative costs or R&D spending, are allocated to each segment. Ensure that these allocations are done accurately.

12. Segment Strategy: – Review the strategic plans and initiatives for each segment. Understand how the company plans to grow or optimize each business area.

13. Cross-Segment Synergies: – Identify any opportunities for cross-segment synergies or cost savings. Sometimes, businesses can leverage resources more efficiently by coordinating activities across segments.

14. External Factors: – Take into account external factors that may impact individual segments, such as economic conditions, regulatory changes, or technological advancements.

15. Reporting and Communication: – Prepare clear and concise reports summarizing the findings of the segment analysis. Share this information with relevant stakeholders, including company management, investors, and analysts.

Segment analysis provides a deeper understanding of a company’s performance and can help in making strategic decisions, resource allocation, and investment assessments. It is particularly useful in diversified companies with multiple business lines or geographic operations.

Now we will understand the 5 business segments of Havells.

Cables: The Cables business being the biggest revenue generator bringing in 32% of FY23’s revenue. The cables segment grew by 19.12% from the previous year.

Lloyd consumer: It is the 2nd largest segment that brought in ~20% of FY23’s revenue. This segment nearly doubled over the previous year (~49% YoY). Havells manufactures TVs, ACs, Washing machines & refrigerators under this brand.

Consumer durables: It is the 3rd largest business segment of the company. Fans, Appliances & Water Heaters are sold in this segment. It contributes to 19.54% of the firm’s revenue. Demand for this segment remained muted, growing by just ~8% over the previous year.

Switchgear: As an individual segment of its own is responsible for ~13% of FY23’s revenue. The segment comprises of domestic, industrial switchgears & capacitors. It saw a decent growth of ~19% over the previous year.

Lighting & Fixtures: It is the 5th largest segment that brought in ~10% revenue & grew by ~17%. Havells also manufactures Motors, solar pumps, water purifiers & personal grooming products. This collectively brought it 5.63% of revenue & grew by 25% over the previous year.

Industry Overview

FY23 witnessed a mixed operating environment as it had a healthy business outlook, while at the same time commodity price fluctuations killed margins.

The consumer electricals and durables industry continued to perform well with demand expanding on the back of urbanization, electrification, and higher disposable incomes in Indian households. Smart-connected homes are on the rise, as the younger population is contributing to buying decisions in the home.

We will now examine the industry of each individual segment.

Electronic Consumer Durables (ECD)

These electronic consumer durables contribute to improving the quality of life and convenience in modern households. They are characterized by their durability, reliability, and the role they play in daily living. Advances in technology have led to the development of energy-efficient and smart appliances, which can be controlled remotely and offer additional features to enhance their functionality.

The fan industry moved to BEE-rated energy-efficient fans with all manufacturers phasing out non-rated fans by December 2022. In the pre-transition phase, there was initially some uncertainty with significant destocking, but just before the transition, there was healthy pickup by channels.

The industry continues to witness higher demand for premium. Demand rose in Tier 2 and Tier 3 cities as well.

The “Make in India” initiative has led to the local manufacturing of mixer grinders (MG) and juicer mixer grinders (JMG). Other categories like induction cooktops, steam irons, toasters, room heaters, hand blenders, etc. have followed suit.

Cables

The category experienced stable growth in FY23 in spite of decreasing metal prices for the major part of the year and copper price volatility. The industry continued its transition from the unorganized to the organized segment with increased consumer focus on buying branded and reliable products for homes and workplaces.

Increased government spending on infrastructure, education, health, manufacturing hubs, and expansion of 5G network all contributed to the growth of the cable industry.

There is a strong demand for visibility across all industrial segments which led to an overall improved environment for the industrial cable sector. In the coming years, various sectors like renewable energy, data centers, metros, 5G, airports, defense, and digitalization are expected to provide sustainable growth.

Now, the industry is focusing on selling specialized cables such as heat-resistant flame retardant (HRFR) cables, flame retardant and low smoke halogen (FRLS-H) cables, and halogen-free flame retardant (HFFR) cables.

Revenue & Net Profit Growth

The Company reported a 21.32% YoY increase in revenue, growing from Rs. 13,938  Cr. in FY22 to Rs. 16,910 Cr. in FY23. The growth was led by the expansion of the Lloyd business which saw a spectacular growth of 49%. It maintains a 5 Year CAGR growth of ~14%.

Despite reporting a double-digit growth in revenue, the Company saw its Net Profits fall by ~10%, from Rs. 1196Cr in FY22 to Rs. 1072Cr in FY23. This was due to an increase in the cost of raw materials which rose by ~20% over the previous year & cost ~55% of FY23’s sales. The Net profit is growing at 5 Year CAGR of ~8%.

Profit Margins

The Company reported operating profit margins of 9.58%, coming at a 5-year low for the Company, much lower than the 5-year average of 12.18%.

Net Profits of the Company fell in the ~6% category in FY23, much lower than the 5-year average of 8.10%.

Return Ratios

The Company reported a Return on Capital Employed of 23.07%, a 3 Year Low for the Company, significantly lower than the 5-year average of 26.59%.

Its Return on Equity dipped to below the 20% category, being reported at ~17%, lower than the 5 Year Average of ~20%. The fall in the Company’s profitability margins was the cause of the low return ratios.

Debt Analysis

The Company is virtually debt-free with a debt-to-equity of 0x. During the year, it paid Rs. 393.69 Cr. as part of its debt payments & it currently has no  Short Term or Long Term Debt obligation. Interest Coverage ratio remains at a 5-year high of 27.28x.

Future Plans Of Havells India

Please note that these are general strategies and considerations that apply to many companies in the electrical equipment industry. The specific future plans of Havells India will depend on its leadership, market conditions, industry trends, and its assessment of opportunities and challenges in the coming years. To get the most accurate and up-to-date information about Havells India’s future plans, it’s advisable to refer to the company’s official announcements, annual reports, and press releases.

Anil Rai Gupta, CMD of Havells India in an interview with The Economic Times, says in FY23 the company will cover 2,800 additional towns with a population of 10,000-50,000. The Company plans to sell white goods, such as Air Conditioners, refrigerators, and washing machines in these markets. They aim to build an organized distribution network, such as the one built by the FMCG Peers.

Havells India plans to launch Havells Studio Meditate Air Purifier, Q-Tron MCCB Range, Glamtubes and Nimbus downlights, Lloyd ACs with AQI Indicator and on-device voice (ODV) features in the coming year, which is expected to further strengthen its consumer durables market of both Havells & Lloyd.

Conclusion

Havells India is set on a growth trajectory on the back of the growth of its Cables & Lloyd Consumer segment. The urbanization of Indians coupled with the rising temperatures in India makes a really good combination to spur up demand for its products.

The Company reported a ~67% fall in Net Operating Cash Flow, due to ~25% & ~27% increase in Inventories as well as Trade Receivables respectively, with these assets collectively holding up ~41% of the Company’s Total Assets. These raise liquidity risks in its financials & must be kept in check.

Fundamental Analysis of Havells India – Financials, Future Plans & More

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Macro Cables and Conductors IPO Review: Macro Cables & Conductors is coming up with its Initial Public Offering. The IPO will be open for subscription on September 21, 2023, and closes on September 25, 2023.

This is an SME (Small and Medium-sized Enterprise) IPO, and the company is going to be listed on the NSE SME platform.

In this article, we will look at Macro Cables & Conductors IPO Review, analyze its strengths and weaknesses and see what unfolds.

Macro Cables & Conductors IPO : About the company

Macro Cables & Conductors Limited was incorporated in 1989 and is engaged in the business of manufacturing and selling wires, cables and conductors in India.

The company’s products cover the entire range of voltage & transmission lines suitable up to 1.1 KV which include LT XLPE Cables, LT PVC Cables, LT Aerial Bunched Cables, AAAC Conductors and ACSR Conductors.

The products are used in sectors like power, electrical, telecom and automotive. The Majority of products are supplied to electricity boards of different states like Maharashtra, Gujarat, Telangana, Madhya Pradesh etc. and turnkey contractors of India.

It sells products through a diversified sales & distribution mix, majorly by securing government tenders to supply to government projects, supply to EPC contractors for turnkey projects and direct sales to a few private companies. It derives most of its revenue and operations from state electricity boards.

The product revenue bifurcation is as follows, LT Aerial Bunched Cables 52.38%, LT PVC & LT XLPE Cables 31.92%, Conductors 14.87% and others(sale of scraps) 0.83%.The government entities and private entities contribute 81.76% and 18.24% to its total revenue. It derives most of its revenue and operations from state electricity boards.

It has its manufacturing facilities and warehouse in Nasik, Maharashtra with a combined installed production capacity of 18,000 Kms p.a. As of August 7, 2023.

Product Portfolio of Macro Cables & Conductors

LT XLPE Cables: LT XLPE  cables are low-tension cables with a voltage level of below 1.1 kv, they are used in domestic and industrial applications.

LT PVC Cables: LT PVC Cables are low-tension cables that are used for transmitting electrical power from one point to another.

 LT Aerial Bunched Cables: It is an overhead power cable used for distributing power from low voltage distribution lines to individual customers.

AAAc Conductors: AAAC Conductors are used for primary and secondary transmission in bare overhead distribution and transmission lines and HV Substations.

ACSR Conductors: ACSR Conductors are high-capacity, high-strength stranded conductors typically used in overhead power lines.

Macro Cables & Conductors IPO Review : Industry Overview

India has emerged as the fastest-growing major economy in the world and is expected to be one of the top three economic powers in the world over the next 10-15 years. India has the potential to become a global manufacturing hub and by 2030, it can add more than US$ 500 billion annually to the global economy.

The global wire and cable market is growing at a CAGR of 6.45%. It is predicted that the global market size of this industry is expected to reach USD 332.65 bn by 2026. The Indian wire and cable market is growing at an even faster pace, with a whopping CAGR of 15%.

The Indian semiconductor materials market size reached US$ 4.5 Billion in 2022. Looking forward, IMARC Group expects the market to reach US$ 6.5 Billion by 2028, exhibiting a growth rate (CAGR) of 6.3% during 2023-2028.

According to the Institute for Energy Economics and Financial Analysis (IEEFA), as India’s demand for electricity is expected to grow nearly 100%, the wires and cable market will have a steep growth curve going forward.

Macro Cables & Conductors IPO Review : Financials

If we look at the financials of Macro Cables & Conductors, it has reported assets worth 56.58 Cr in FY21 and 69.93 Cr in FY23, the company’s assets have grown by ~25% over the last 3 years.

In FY21 and FY23 the company reported revenue of 42.82 Cr and 56.93 Cr, the revenue has grown by ~35%, accompanied by profits which have increased from 0.12 Cr in FY21 to 2.80 Cr in FY23. Though the company can generate good revenue it is only able to maintain decent profits due to high operating expenses.

In terms of return ratios, in FY23 it had an ROE of 22.42% and an ROCE of 16.93%. These ratios indicate that the company can get good returns on its equity, but it is only able to generate decent returns on its capital employed.

The Company reported a Debt-to-equity ratio of 2.41 in FY23, which indicates that the company has a high level of debt in proportion to its equity.

Financial Metrics

(₹ in Lakhs, otherwise mentioned)

Competitors of Macro Cables & Conductors

The listed peers of Macro Cables & Conductors as per the RHP of the company are, V-Marc India Limited, Ultracab (India) Limited, Relicab Cable Manufacturing Limited and Dynamic Cables Limited.

Strengths of the Company

• The company has a strong customer base with long-standing relationships which contributes to its operations and growth.
• The company is qualified and eligible to submit tender for government projects as it can meet their requirements and it derives most of its income from it.
• The company focuses on customized product development as per the desires and requirements of the customer, thereby satisfying the end user and gaining customer loyalty.

Weaknesses of the company

• Its major customer base includes government bodies and any delay in passing bills can delay the payments leading to disruption of operations.
• It generates a major portion of its sales from Gujarat, Telangana, Maharashtra and Madhya Pradesh, any adverse changes in these regions can disrupt its operations.
• It generates most of its business from government entities which are undertaken through the bidding process, failing to procure the tenders continuously can adversely affect its operations.

Macro Cables & Conductors IPO Review : GMP

The information about the GMP is not available currently, we shall update the article once we receive the information.

Macro Cables & Conductors IPO Review : Key IPO Information

Promoters: Mr. Sumit Sugnomal Kukreja, Mr. Sugnomal Mangandas Kukreja and MS. Komal Sumit Kukreja.

Book Running Lead Managers: Shreni Shares Limited.

Registrar to the Issue: Bigshare Services Private Limited.

Objectives of the Issue

The Company proposes to utilize the Net Proceeds from the Offer towards funding the following objects

• Funding of capital expenditure requirements of the Company towards the purchase of Solar Power System and 1 + 12 Rigid Stranding Machine.
• Funding Incremental Working Capital Requirement
• General corporate purposes.

In Closing

In this article, we looked at Macro Cables & Conductors IPO review. Through this article, we can see that the company usually deals most of its products (Cables, wires and conductors) with state electricity boards and can generate decent returns due to high operating expenses.

The company has good potential for future growth provided it diversifies its customer base, operations and reduces its operating expenses.

Macro Cables & Conductors IPO is an SME (Small and Medium-sized Enterprise) IPO which is different from the mainline IPO as the minimum investment required and the Minimum/Maximum lot size is ₹108000(3000 shares).

What do you think the future holds for the company, do you believe the company will stay strong like its cables? Are you applying for this IPO? Let us know in the comments below.

Macro Cables & Conductors IPO Review – GMP, Price, Details & More

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Top Stocks Held By LIC – The Life Insurance Corporation of India (LIC) is an insurance provider with offices in Mumbai, India. The company, which was founded in 1956, principally offers life insurance products, such as pension plans, health plans, and group insurance schemes.

LIC is a key player in the Indian equities market due to its enormous financial assets and long-standing position in the country’s financial system. Market participants, analysts, and investors keep a careful eye on the company’s stock holdings. As of June 2023, the company’s Assets Under Management Stood at 46.11 lakh crore.

Here are te Top 5 Stocks Held by LIC

Top Stocks Held by LIC #1 – IDBI Bank

One of India’s Top and Fastest Growing Banks is IDBI Bank. All customer segments can choose from a broad range of financial services provided by the Bank. The bank strives to continuously provide value to its clients in order to become the most convenient and well-liked financial institution in India.

The bank had 1890+ branches and 3300+ ATMs across India. The bank’s net interest income increased by 24% from Rs. 9,162 Cr in FY22 to Rs. 11,431 Cr in FY23 and for the same period total deposits increased by 9.5% from Rs. 2,33,134 Cr to Rs. 2,55,499 Cr. EPS stood at Rs. 3.45.

LIC is one of the promoters, it holds a 49.24% stake in the company which is worth Rs. 35,126.4 Cr.

Top Stocks Held by LIC #2 – Castrol India Ltd

Castrol India Ltd. is a manufacturing company focusing on automotive and industrial lubricants. The company owns up to 20% market share. It is also involved in the distribution of its finished products. It is known worldwide for serving its marine, automotive, aviation, industrial, and oil exploration customers.

The company follows a calendar year basis (January to December) for financial reporting.  The company reported a revenue of Rs. 4,774.49 Cr in FY22 which is an increase of 13.89% from Rs. 4,192.06 Cr in FY21. Its net profit increased to Rs. 815.15 Cr in FY22 which is an increase of 7.53% from Rs. 758.09 Cr in FY21. EPS stood at Rs. 8.24.

LIC holds a 11.29% stake in the company which is worth Rs. 1,655 Cr and Aditya Birla Sun Life Trustee Pvt Ltd mutual fund holds a stake in the company.

Top Stocks Held by LIC #3 – Hindustan Copper Ltd

Founded on November 9, 1967, Hindustan Copper Limited (HCL) is a public sector enterprise that is managed by the Indian government’s Ministry of Mines. As the sole vertically integrated copper producer in the country, it manufactures copper from the mining stage through beneficiation, smelting, refining, and casting of refined copper metal into downstream marketable products.

The company reported a revenue of Rs. 1,677.33 Cr in FY23 which is a decrease of 7.94% from Rs. 1,821.93 Cr in FY22. Its net profit decreased to Rs. 295.46 Cr in FY23 which is a decrease of 20.96% from Rs. 373.83 Cr in FY22. EPS stood at Rs. 3.06.

As per the recent shareholding information, LIC holds a 11.23% stake in the company which is worth Rs. 1,721 Cr and some of the mutual funds like SBI PSU Fund, Quant Mutual Funds hold a stake in this company.

Top Stocks Held by LIC #4 – Hero MotoCorp Ltd

Manufacturing motorcycles is the primary business of Hero MotoCorp Ltd. Motorcycles, scooters, and related spare parts are produced and sold by the business. Following closely behind are scooter sales, which make up the greatest portion of the total revenue.

The company revenue grew by 15.59% from Rs. 29,551.28 Cr in FY22 to Rs. 34,158.38 Cr in FY23 and for the same period, net profit grew by 21.28% from Rs. 2.316.88 Cr to Rs. 2,809.96 Cr. EPS stood at Rs. 140.6.

As per the recent shareholding information, LIC holds an 11.22% stake in the company which is worth Rs. 6,715.2 Cr, and ICICI Prudential Life Insurance Company Ltd hold a stake in this company.

Top Stocks Held by LIC #5 – Coal India

Coal India Ltd. (CIL) is a government-owned coal mining company. Coal and products made from coal are produced there. The company’s product line includes coking coal, semi-coking coal, non-coking coal, hard coal, washed and beneficiated coal, coal fines, heavy oil, and coke.

Through its subsidiaries, the company conducts business in 83 mining regions spanning over eight Indian states. There are 322 mines owned by the company, including 138 underground, 171 opencast, and 13 mixed mines. It oversees a variety of other establishments, including hospitals, workshops, and more.

The company revenue grew by 25.98% from Rs. 1,09,941.45 Cr in FY22 to Rs. 1,38,506.22 Cr in FY23 and for the same period, net profit increased by 62.26% from Rs. 17,358.1 Cr to Rs. 28,165.19 Cr. EPS stood at Rs. 45.7.

As per the latest shareholding data, LIC holds 11% stake in the company which is worth of Rs. 19,069 Cr.

List of Stocks with High LIC Holdings

By utilizing the stock screener ,stock heatmap, portfolio backtesting, and stock compare tool on the Trade Brains portal, investors gain access to comprehensive tools that enable them to identify the best stocks also get updated with stock market news, and make well-informed investment decisions.

Top 5 Stocks Held By LIC – Strategic Equity Holdings!

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Best Blue Chip Stocks under Rs 500: Investing in the stock market can be risky, and requires a careful selection of stocks to build a diversified and stable portfolio. Blue-chip stocks shave off some of that risk by giving consistent and stable returns.

Now let us first understand what is a blue chip stock.

These are Stocks from established companies, that are financially sound and have stable revenue growth. They continue to perform even under adverse conditions, as they have the liquidity requirements to weather storms.

Best Blue Chip Stocks Under Rs 500

Today, we will look into 5 large Cap Companies with stable revenue and profitability growth. They pay dividends constantly and are available at an attractive price of under Rs. 500. We will understand when was the Company established, and a brief history of the Company.

We will also look at the business segments of the Company and understand which are its most important segments. Then we will understand how the Company performing in terms of Top Line and bottom line before finally concluding our article.

Best Blue Chip Stocks under Rs 500 #1 – ITC

ITC or India Tobacco Company is a multinational conglomerate that has businesses spanning from Fast Moving Consumer Goods (FMCG), Paperboards, and packing to Agri-Business and Information Technology.  It was ranked as India’s most admired company, according to a survey conducted by Fortune India, in association with Hay Group.

The Company predominantly is a manufacturer of Tobacco products. It holds a near monopoly, by dominating a 78% market share. It is also a leading FMCG Marketer with a vibrant portfolio of 25+ Indian brands.

Aashirvaad is part of the Agri-Business, Classmate, and Paperkraft are part of the Paper segment while Sunfeast, Yippee!, Bingo!, B Natural, ITC Master Chef, Fabelle, Sunbean, Fiama, Engage, Vivel, Savlon, and Mangaldeep, all form part of the FMCG category.

~41% of ITC’s revenue comes from FMCG cigarettes, while 25.2% comes from FMCG-Others.  The Agri Business is the 3rd largest segment bringing in 16.3% of revenues while its paper business brings in ~10%. Its Hotel segment is being de-merged from the holding Company contributes to just about ~3.5% of FY23’s revenue

This Blue Chip FMCG Company reported FY23 revenues of Rs. 70,937 Cr. growing by ~17% from Rs. 60,668 Cr. in FY22. It reported a healthy Profit after Tax of Rs. 19,191 Cr. with Net Profit Margins of ~25%.

Best Blue Chip Stocks under Rs 500 #2 – Wipro

Wipro Limited is a leading technology service Company founded by Mr. Azim Premji in 1945. It is a company focused on building innovative solutions that address complex digital transformation needs. It has a presence in 66 countries and an employment base of more than 2,50,000 employees spread across continents.

The Company recently has been on an acquisition spree acquiring multiple IT Companies all over the globe. Some of these companies are CAPCO, Edgile, Rizing, LeanSwift, and Convergence Acceleration Solutions (CAS).

Wipro provides a host of services such as consultancy, cybersecurity, Data Analytics, Business Processes, and Artificial intelligence. They have a client base that is in sectors from Aerospace & Defence to Banking, Communications, Consumer Electronics to Healthcare.

The Financial Services sector brings in ~35% of Wipro’s revenue, followed by the Consumer sector which consists of Electronics and other packaged goods. This brought in ~18% of FY23’s revenue. Healthcare, Energy, and technology contribute to ~12% of revenue each.

Wipro reported FY23 revenues of Rs. 90,487Cr growing by 14%, from 79,093Cr in FY22. Net Profit during the respective term fell by 7%, from Rs. 12,243Cr in FY22 to Rs. 11,366Cr in FY23 . This was due to a dip in Net Profit Margins from 15% in FY22 to 13% in FY23.

Best Blue Chip Stocks under Rs 500 #3 – Coal India

Coal India Limited (CIL) is a state-owned coal mining Maharatna Company, established by the Government of India in November 1975. It is the largest coal producer in the world with a production of 79 Million tonnes since inception.

Coal India was born on the back of two very important promulgations in 1972 & 1973, that gave the Government the access to take over 226 coking coal mines & 711 non-coking coal mines leading to the birth of CIL.

CIL produced 703.2 MT of coal in FY’23, registering a growth of 13% from FY22 production of 622 MT. It breached the 700 MT production mark for the first time on March 30th, one day ahead of the closure of 2022–23.

Coal India reported a spectacular year with Revenue’s growing by ~26%, from Rs. 1,09,941 Cr. in FY22 to 1,38,506 Cr. in FY23. It also maintained a healthy Net Profit Margin of ~20%. The Company currently has a Return on Equity of 56%, with a dividend yield of 11.35%. To top it all it trades at a Price-to-earnings ratio of just 6.2x.

Best Blue Chip Stocks under Rs 500 #4 – ONGC

Oil & Natural Gas Corporation or ONGC is a Maharatna Company, and the largest crude oil and natural gas Company in India, contributing around 71% to Indian domestic production.

Crude oil is the raw material used by companies like IOC, BPCL, and HPCL to produce petroleum products like Petrol, Diesel, Kerosene, Naphtha, and Cooking Gas LPG.

ONGC was set up under the leadership of Pandit Jawahar Lal Nehru, in 1955. It began its journey as a Directorate, which was then converted into a Commission and finally into a Corporation in 1994. The Company was awarded the Maharatna status in 2010.

ONGC owns and operates multiple segments such as upstream and downstream drilling, refinery, Petrochemical, Liquified Natural Gas, Renewables, and other segments. It owns Companies like HPCL, MRPL, Petronet LNG, Prize Petroleum, etc..

ONGC’s revenues grew by ~29%, from Rs. 4,91,300 Cr. in FY22 to 6,32,326 Cr. in FY23. However, its Net Profit fell by 22% from Rs. 45,522 Cr. in FY22 to 35,440 Cr. in FY23. This was due to the sudden rise in Production and transportation costs that grew by 47.22% and costed ~47% of FY23’s revenue.

The Company has a Return on Equity of 12.14%, with a  dividend yield of 7.45% and it trades at a price of 6.16x of its earnings and 0.78x its actual book value.

Best Blue Chip Stocks under Rs 500 #5 – PowerGrid

Power Grid Corporation of India Limited (POWERGRID), is a ‘Maharatna’ Enterprise of which was incorporated on 23rd Oct 1989 under the Company Act, 1956. It is also India’s largest electrical power Transmission Utility Company. PowerGrid was listed in 2007, with GOI currently holding a  51.34% stake in the Company.

During FY23, PowerGrid added 2,972 circuit km of Extra High Voltage transmission lines, 28,990 MVA of transformation capacity, and 9 new substations. It also made a Capital Expenditure of Rs. 9,212 crore and capitalized assets of Rs. 7,413 crore on a consolidated basis during the year.

PowerGrid’s business can be divided into a Transmission Segment, a Telecom Segment, a consulting business, and Battery Energy Storage Systems (BESS).

PowerGrid’s revenue grew by a modest 9.51%, from Rs. 45,581 Cr. in FY22 to 41,622 Cr. in FY23. However, its profitability fell by 8.36%, from Rs. 16,824 in FY22 to Rs. 15,417 in FY23. Its Net Profit Margins remained at ~34%.

The Company currently trades at a PE valuation of 11.73x, which is slightly higher than its peer Maharatnas. It has a Return on Equity of 19.36% and a dividend yield of 6.54%.

List of Blue Chip Stocks Under Rs 500

The list below puts together 10 best blue chip stocks available under Rs 500 in India.

Conclusion

Now we approach the end of our article having given you a list of fundamentally strong stocks. These stocks have a long history that dates back to many years. Three out of five stocks mentioned in the list below are Maharatnas.

The stocks mentioned above are by far very safe Companies with stable management and constantly reward investors for being a part of their journey. However, readers should be aware that since they are massive in size, their growth might not be on par with fellow mid-caps.

Keeping this in mind, do let us know what would you prefer. A risky mid-cap with great growth potential or a well-established large with restricted but sustainable growth?

By utilizing the stock screener, stock heatmap, portfolio backtesting, and stock compare tool on the Trade Brains portal, investors gain access to comprehensive tools that enable them to identify the best stocks also get updated with stock market news, and make well-informed investment decisions.

Best Blue Chip Stocks Under Rs 500 – Wealth-Building on a Budget

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Arabian Petroleum IPO Review: Arabian Petroleum is coming up with its Initial Public Offering. This IPO will be open for subscription on September 25, 2023, and closes on September 27, 2023. This is an SME (Small and Medium-sized Enterprise) IPO, and the company is going to be listed on the NSE SME platform.

In this article, we will look at the Arabian Petroleum IPO Review, analyze its strengths and weaknesses and see what unfolds.

Arabian Petroleum IPO Review : About the Company

The company took over the manufacturing and trading business of Industrial & Automotive Lubricants from the proprietorship firm “Arabian Petroleum” in 2015.

The company is in the business of manufacturing a wide range of Lubricants including Specialty Oils, Coolants etc., used for Industrial and Automotive applications. It has two distinctive product divisions and brands i.e., Automotive Lubricants-Arzol and Industrial Lubricants-SPL.

It also manufactures and packages lubricants on a private label basis for some of the customers for B2B as well as B2C verticals. Some of the clients are BEML, HAL, Mazagon Dock Shipbuilders, Mahindra First Choice Services Limited, Godrej & Boyce Manufacturing Co. Ltd etc.

The domestic and international customers are spread across multiple industries, including pharmaceutical, FMCG, chemicals, civil engineering, electrical appliances, automobiles and contracts from government sectors and associated entities etc. It is also one of the suppliers of lubricants to the Indian armed forces.

It exports products to countries like Guyana, Oman, Qatar, Vietnam, Sri Lanka, Sierre Leone, Zambia, Bangladesh, Chile, Jordan, Seychelles, Maldives, Fiji, Congo, Guatemala, Suriname, Peru, Mauritius, Dubai etc.

The company has an extensive distribution network of 400 dealers and distributors and 9 depots as of March 2023.

The Company’s sales breakdown as of FY23 is as follows, Industrial Lubricants 62.54%, Automotive Lubricants 36.86% and others 0.58%.

Arabian Petroleum IPO Review : Industry Overview

Oil and natural gas are major industries in the energy market and play an influential role in the global economy as the world’s primary fuel source. India is the 3rd largest consumer of oil and lubricants in the world, after the United States & China. Almost 42% of India’s energy consumption comes from Oil and Gas.

India is planning to double its refining capacity to 450-500 million tonnes by 2030. According to IEA (India Energy Outlook 2021), primary energy demand is expected to nearly double to 1,123 million tonnes of oil equivalent, as the country’s gross domestic product (GDP) is expected to increase to US$ 8.6 trillion by 2040.

In FY23, India consumed 222.3 MMT of petroleum products, up 10.2% from the previous year. This is the highest-ever in the history of the world’s third-largest oil consumer. India’s crude oil production in FY23 stood at 29.2 MMT.

The Growing stature of India in the global market as a sourcing hub for the manufacturing industry and the increase in the export of lubricants from India to the rest of the world will make a huge impact on the lubricant industry. The overall Indian auto components industry, which accounts for 2.3% of India’s GDP currently, is set to become the 3rd largest globally by 2025.

Arabian Petroleum IPO Review : Financials

If we look at the financials of Arabian Petroleum, it has reported assets worth 50.31Cr in FY21 and 76.50Cr in FY23, the company’s assets have grown by ~55% over the last 3 years.

In FY21 and FY23 the company generated revenue of 110.24Cr and 243.94Cr and the profits were 2.87Cr and 4.86Cr, even though the company’s revenue has more than doubled over the last 3 years, it is only able to maintain profit margins of ~2% over 3 years due to high operating expenses.

In terms of return ratios, in FY23 it had an ROE of 22.08% and an ROCE of 32.47%. These ratios indicate a good return on the shareholder’s capital and an efficient use of the company’s resources.

The company reported a Debt-to-equity ratio of 1.75 in FY23, which indicates a high level of debt in proportion to its equity.

Financial Metrics

(Source: RHP of the company)

Competitors of Arabian Petroleum 

The listed peers of Arabian Petroleum as per the RHP of the company are Tide Water Oil Co. (India) Limited and GP Petroleums Limited.

Strengths of the Company

• The company has a strong customer base with long-standing relationships.
• The company caters its products to domestic and international markets across multiple industries.
• The company has developed in-house research and development capabilities to understand customer preferences and develop customized product applications to cater to customer-specific needs and maintain customer loyalty.
• The company has a strong distribution network for the sale of its products.
• It offers a wide range of lubricants catering to diverse needs of the customer.

Weaknesses of the company

•  The company does not have long-term agreements with its customers.
• There is a high level of competition in the lubricant industry, from renowned brands and companies.
• The fluctuation in the crude oil supply and prices can affect the operations and profitability of the business.
• The trademark used by the company is not registered in its name, so it can face issues from third parties in the future.
• The company’s growth is directly dependent on the automobile and other industries, any adverse impact on these industries directly impacts the operations of the company.

Arabian Petroleum IPO Review : GMP

As the shares of the company are not currently trading in the grey market, the GMP is not available. we shall update the article once we receive the information.

Arabian Petroleum IPO Review : Key IPO Information

Promoters: Mr. Hemant Dalsukhrai Mehta and Mr. Manan Hemant Mehta

Book Running Lead Managers: Hem Securities Limited

Registrar to the Issue: Purva Sharegistry(India) Pvt.Ltd

Objectives of the Issue

The company intends to utilize the net proceeds from the issue towards funding of the following objects.

• To meet Working Capital requirements
• General Corporate Purpose
• To meet issue expenses

In Closing

In this article, we looked at Arabian Petroleum IPO Review, through this article, we can say that the company has generated good revenue but is struggling to maintain good profit margins and the company has a good business model and a customer base including government bodies which contribute to its growth and profitability.

Arabian Petroleum is an SME(Small and Medium-sized Enterprise) IPO. The minimum investment required and the Minimum/Maximum lot size for this IPO is ₹1,40,000(2000 shares).

What do you think the future holds for the company, Do you believe the company can survive against large players? Are you applying for this IPO? let us know in the comments below.

Arabian Petroleum IPO Review – GMP, Details, Price & More

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Made-in-India iPhone: The new Apple iPhone 15 series has been launched in India and other countries. You can pre-book from September 15 and the sale will start from September 22.

Apple is looking to diversify its manufacturing base and reduce its dependency on China, due to the rising tensions between the US and China, along with the supply chain disruptions during the COVID pandemic.

Though the majority of iPhone 15s will still be made in China, it would be the first time the latest generation, India-assembled device is available on the first day of worldwide sales, removing the usual delay between the global and Indian launch.

However, there might be some delays with the India-made iPhone 15 because of unexpected logistics bottlenecks.

Apple has increased iPhone production in India, assembling more than $7 billion worth in FY 2022.

History of Made-in-India iPhones

This is not the first time, the history of iPhones being made in India goes back to 2017.

In 2017, the first iPhone assembled in India was the iPhone SE (first generation). Since then, Apple has been expanding its operations in India, leading up to the launch of the iPhone 15. What followed next after 2017, was the production of the iPhone 6s in 2018 followed by the iPhone 7, and other models subsequently.

However, it’s important to note that these were older iPhone models, not new ones. So, Apple making the iPhone 15 in India is a significant development.

Before the iPhone 14, iPhone assembly in India lagged production by 6-9 months from those sets assembled in China. But in 2022, this delay was drastically reduced to just a few weeks, and by the end of March, Apple had increased the proportion of iPhones it assembles in India to 7%.

This is just the beginning, as Apple aims to increase the target of reaching up to 25% of its production in India from about 5%-7% now.

Apple began iPhone 15 production at Foxconn Technology Group’s factory in Tamil Nadu state last month. Other suppliers of Apple in India, like Pegatron Corp. and a Wistron Corp. factory soon to be acquired by the Tata Group, will also likely start assembling the iPhone 15 soon.

Apple now allows the new iPhone 15 Pro models to use India’s homegrown GPS alternative called NavIC. This is the first time any iPhone has this feature. But please note that regular iPhone 15 and iPhone 15 Plus models don’t support NavIC.

Are there any benefits for Indian consumers from the Made in India iPhone?

As for the benefits to Indian consumers, in the short term, we can’t expect lower iPhone prices just because they’re made in India.

This didn’t even happen with previous iPhone models like the iPhone 7, iPhone SE, iPhone XR, or iPhone 12. The prices for the iPhone 15 series in India are still quite high. We won, but at what cost?

Here are the IPhone 15 series Prices in India: 

iPhone 15 – starting at Rs. 79,900

iPhone 15 Plus – starting at Rs. 89,900

iPhone 15 Pro – starting at Rs. 1,34,900

iPhone 15 Pro Max – starting at Rs. 1,59,900

In comparison, here are the iPhone 15 series prices in the US:

iPhone 15 – $799 onwards (approx. ₹66,208)

iPhone 15 Plus – $899 onwards (approx. ₹74,495)

iPhone 15 Pro – $999 onwards (around ₹82,781) 

iPhone 15 Pro Max – $1199 onwards (around ₹99,354)

Apple sees India as an important market both for selling its products and as a production hub for its gadgets in the long run.

So, are you planning to buy the new iPhone 15?

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Goodbye China, Hello India: The Rise of the Made-in-India iPhone!

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