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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The connection between Ambani and Dunzo began last year when Reliance Retail invested $200 million to acquire a little over 25% ownership in the Bengaluru-based startup.

And as per reports, since July, Dunzo has been seeking at least $20 million, which is around Rs. 165 crore, more from Reliance Retail after it fell short of its target to raise $75 million by offering convertible notes.

They are in need of more cash and have held discussions with Reliance Retail to invest around $20 million, but it is not clear if Reliance Retail has given any clear answer to that yet.

In April, the Bengaluru-based firm was able to raise just about $45 million, with only Reliance Retail and Google subscribing to the convertible notes and its other shareholders staying away, which has caused an adverse cash flow situation at the company.

The worst part is that Dunzo can’t really tap any other strategic investors because of Reliance’s presence as well.

Reliance Retail owns a 25.8% stake in Dunzo, while Google holds just under 20%. The ongoing discussions are anticipated to result in the Mukesh Ambani-led conglomerate making an additional investment, which would consequently raise its stake in Dunzo.

Things have been quite disturbing for a few months for the people working in Dunzo as well, due to its liquidity crisis.

Delayed payments and layoffs

Dunzo delayed the salary of employees again, which was supposed to be paid by September for the months of June, July, and August, due to what founder Kabeer Biswas described as a “cash flow issue” during a meeting with employees.

The salary was supposed to be paid on September 4, but was eventually postponed again to the first week of October. Above that, in July, Dunzo had promised to pay 12% annual interest on the salary amount held back for June and July to the affected employees.

Over the last eight months, it has fired around 400 employees (30% of its staff) as it was forced to scale down its consumer-facing business, Dunzo Daily, and move its focus to the B2B vertical.

Shutting down dark stores

As per a few reports, it shut down 70% of dark stores, shifting its focus to the B2B unit, Dunzo for Business, from the business-to-consumer (B2C) unit, Dunzo Daily.

This large number of shutdowns of dark stores is due to one of the major reasons: the off-roll employees of the company’s dark stores in Bengaluru refused to work starting August 15 after their July salaries were delayed. However, they resumed their work on August 19 at the seven dark stores in Bengaluru after receiving the payouts for July.

These off-roll employees are mostly involved in packing groceries and handling them to assigned delivery partners in the Dunzo Daily service.

It is very hard to believe that Dunzo, which had nearly 250 stores all over the country, has now come down to single digits.

What are a few major reasons behind the downfall of Dunzo?

As of my last knowledge update in September 2021, Dunzo was a hyperlocal delivery startup based in India. It’s important to note that the success or downfall of a startup can change over time due to various factors, and my information might not reflect the latest developments. Up until that point, Dunzo had been a relatively successful venture, but it also faced some challenges. Here are a few major reasons that could potentially contribute to the challenges faced by Dunzo or similar companies:

1. Competition: The hyperlocal delivery space in India is highly competitive. Dunzo faced competition from other well-funded startups, as well as established players like Swiggy, Zomato, and Amazon. This intense competition can lead to price wars and customer acquisition costs that may impact a startup’s profitability.
2. Operational Costs: Running a hyperlocal delivery service involves significant operational costs, including those related to delivery personnel, technology infrastructure, and marketing. Managing these costs while maintaining affordable prices for customers can be challenging.
3. Scalability: Scaling a hyperlocal delivery service is not easy, especially when expanding to new cities or regions. Ensuring consistent service quality, hiring and training delivery personnel, and building a reliable logistics network are critical but resource-intensive tasks.
4. Regulatory Challenges: Hyperlocal delivery services often face regulatory challenges related to licensing, permits, and compliance with local regulations. Navigating the regulatory landscape can be complex and time-consuming.
5. Unit Economics: Achieving positive unit economics, where the revenue from each delivery exceeds the cost, is crucial for the long-term sustainability of hyperlocal delivery startups. Achieving profitability at scale can be challenging.
6. Customer Retention: Acquiring new customers is one aspect, but retaining them and ensuring they continue to use the service regularly is equally important. This involves providing a seamless and reliable experience.
7. Funding and Burn Rate: Hyperlocal delivery startups often rely on external funding to expand rapidly. However, excessive reliance on funding, combined with a high burn rate (spending more money than is being earned), can lead to financial stress if new funding rounds are not secured.
8. Pandemic Impact: The COVID-19 pandemic had both positive and negative impacts on hyperlocal delivery services. While there was increased demand for delivery during lockdowns, it also led to operational challenges, increased competition, and changed consumer behaviors.
9. Market Saturation: In some cities, the hyperlocal delivery market may become saturated, making it difficult for new players to gain a foothold or for existing players to grow further.
10. Changing Consumer Preferences: Consumer preferences and expectations evolve. Meeting these changing preferences and staying ahead of competitors can be a continuous challenge.

It’s important to keep in mind that the fate of a startup can change over time, and the challenges they face may evolve. Dunzo and other hyperlocal delivery companies may adapt to these challenges by pivoting their business models, securing additional funding, expanding to new markets, or diversifying their services. To get the most up-to-date information on the status of Dunzo or similar companies, I recommend checking recent news and reports.

The company is reported to have engaged in discussions with debt investors to potentially revise the credit terms and aims to use some of the company’s available cash to settle outstanding payments owed to both vendors and staff salaries.

Dunzo earned Rs 54.3 crore from revenue from operations in FY22, up from Rs. 25.1 crore in FY21. On the other hand, its net loss has ore than doubled—from Rs 229.1 crore in FY21 to Rs 464 crore in FY22.

The biggest expense factor for the company was employee benefit expenses, totalling Rs 138 crore. This was followed by advertising and promotional expenses, amounting to Rs 64.4 crore, representing a nearly six-fold increase compared to the Rs. 11 crore spent in FY21. Additionally, during the initial half of 2022, from January to June, Dunzo incurred a loss of Rs. 230 on each daily order.

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The Downfall of Dunzo? Ambani and Google-Backed Startup!

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Is China Planning to Restrict iPhone Sales Forever amid rising tensions between US and China?

The government of China has banned the use of iPhones in sensitive departments to government-backed agencies and state companies, a day after central government employees were forbidden from bringing the devices to work, as per reports. Many Chinese employees of affected organisations have a separate phone for work.

It has also been reported that there are several agencies that have started instructing employees not to bring Apple mobiles to work, and this ban is expected to be further extended.

It doesn’t stop at the iPhone! At least one state-owned company had also instructed its employees that anyone working with trade secrets should not bring their iPhones, Apple Watches, or AirPods into work starting in October.

This is not happening for the first time; the central government of China has imposed some restrictions not only on Apple devices but on foreign-made tech products in workplaces as well, that are linked to the government since at least 2018.

However, China hasn’t issued formal or written orders yet, to ban the use of iPhones or any other foreign phone brand. It remains unclear to what extent various companies or agencies might eventually impose restrictions on personal devices.

China has over 1.5 lakh state-owned companies, employing more than 56 million people in 2021. So, will it be bad for the US, or is it the other way around? Let’s find out!

What could be the one of the major reason behind this ban on iPhones?

With the way the US is switching its focus towards the manufacturing and assembly of iPhones and other products from China to India, China is also trying to reduce its dependency on foreign products.

Before China, it was the US that made headlines by banning Huawei and TikTok, among others, and some analysts now believe that the ban on Apple might be a part of tit-for-tat measures.

Will it affect Apple in any way?

Apple shares fell 2.9% Thursday in New York, following a 3.6% decline on Wednesday—their biggest single-day drop since August 4, after the news came out.

But here’s the catch: China happens to be one of Apple’s largest markets, contributing nearly a fifth of its total revenue. Greater China, including China, Hong Kong, and Taiwan, ranks as Apple’s third-largest market and was responsible for a significant 19% of its $394 billion (Rs. 32.75 lakh crore) in sales for the year 2022.

Above that, Foxconn, the Taiwan-founded supplier for Apple, has its megafactories in China, employing over 1.2 million people.

Apple production remains highly dependent on China, with roughly 90% of its products manufactured within the country’s borders.

A Morgan Stanley analyst raises a red flag, suggesting that these restrictions cannot lead to something broader or, in a worst-case scenario, result in a 4% decline in Apple’s revenue. He believes that China is critical to Apple‘s success, and conversely, Apple is also critical to the Chinese economy.

Do you believe that China will ban the sale of iPhones in the coming future?

Written By Shivani Singh

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.

Is China Planning to Restrict iPhone Sales Forever amid rising tensions between US and China?

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Just a few days back, at the annual conference of the Society of Indian Automobile Manufacturers (SIAM), Union Minister for Road Transport and Highways Nitin Gadkari made a comment urging the finance minister to impose a pollution tax on every engine that runs on diesel. 

   

But things took a wild twist! What began as a well-intentioned proposal got twisted into a rumour that the government is going to impose a 10% GST on diesel-powered vehicles.

Rumours were so strong that soon after, stock prices of India’s largest commercial vehicle maker – Tata Motors, second-largest – Ashok Leyland, and Mahindra & Mahindra, which contributes to almost half of all diesel passenger vehicles sold in India, went down.

But that wasn’t the end; something else also happened last week! Mumbaikars gathered together to say goodbye to the iconic Red Double-Decker bus in Andheri. And with this, we witnessed the end of an era of red diesel-run double-deckers, introduced on the city streets 86 years ago.

Are there any other alternatives besides diesel? 

Yes, there are several alternative fuels and propulsion technologies that are being explored and used as alternatives to diesel in various applications, including commercial vehicles. These alternatives aim to reduce emissions, improve fuel efficiency, and address environmental concerns. Here are some of the primary alternatives to diesel:

1. Compressed Natural Gas (CNG) and Liquefied Natural Gas (LNG):
   • CNG and LNG are cleaner-burning alternatives to diesel. They produce lower levels of greenhouse gases and air pollutants.
   • CNG is typically used in light-duty and some medium-duty vehicles, while LNG is more commonly used in heavy-duty trucks and buses.
   • Infrastructure for natural gas refueling is expanding in some regions.
2. Electric Vehicles (EVs):
   • Electric commercial vehicles, including trucks and buses, are becoming more common as battery technology advances.
   • EVs produce zero tailpipe emissions, making them environmentally friendly.
   • Challenges include limited range for heavy-duty applications and the need for charging infrastructure.
3. Hydrogen Fuel Cell Vehicles (FCVs):
   • FCVs use hydrogen to generate electricity to power electric motors. They produce zero emissions at the tailpipe.
   • Hydrogen can be produced from a variety of sources, including renewable energy, making FCVs a potentially sustainable option.
   • Challenges include the need for hydrogen infrastructure and cost considerations.
4. Biodiesel:
   • Biodiesel is a renewable fuel made from vegetable oils, animal fats, or recycled cooking oil.
   • It can be blended with traditional diesel fuel, reducing greenhouse gas emissions and air pollutants.
   • Biodiesel is compatible with existing diesel engines and infrastructure.
5. Propane (Autogas):
   • Propane is a clean-burning alternative fuel used in a variety of vehicles, including commercial trucks and buses.
   • It offers similar fuel efficiency to diesel and produces fewer emissions.
6. Hybrid Vehicles:
   • Hybrid commercial vehicles combine traditional internal combustion engines with electric propulsion systems to improve fuel efficiency.
   • They can be designed for various applications, including delivery trucks and buses.
7. Renewable Diesel:
   • Renewable diesel is a drop-in replacement for conventional diesel fuel made from renewable feedstocks like vegetable oils and animal fats.
   • It has similar properties to petroleum diesel but with lower greenhouse gas emissions.
8. Synthetic Fuels:
   • Synthetic fuels, such as synthetic diesel or synthetic natural gas, can be produced using renewable energy sources like hydrogen and carbon dioxide captured from the air.
   • These fuels have the potential to be carbon-neutral and can be used in existing diesel engines.

The choice of alternative fuel or technology depends on factors like vehicle type, application, infrastructure availability, and regulatory incentives. Many countries and regions are implementing policies and incentives to encourage the adoption of cleaner transportation options, which may accelerate the shift away from diesel in t

OPTION 1 – Hydrogen fuel cells and hydrogen-powered engines sound promising, but the cost of hydrogen needs to be reduced at least by two-thirds for it to make sense for commercial use.

OPTION 2 – Electric buses are becoming more common, especially with state governments adopting them under a gross cost contracting (GCC) model. However, this poses a significant financial risk for manufacturers, as they have to account for these vehicles on their own balance sheets.

OPTION 3 – Ethanol comes with a hefty price tag, currently sitting at around Rs. 68 per litre. It’s an expensive choice and is also not as efficient as traditional petrol or diesel.

OPTION 4 – Green hydrogen production and distribution for transport is just starting to take shape.

Given these challenges, diesel engines are likely to maintain their dominance in long-distance transport, and changes in total cost of ownership (TCO) trends and government orders are pushing for the adoption of alternative fuels like CNG and electricity for smaller commercial vehicles. The road ahead promises innovation, but diesel isn’t ready to retire just yet.

Why does diesel rule the road for commercial vehicles?

There are several compelling reasons that have kept diesel in the driver’s seat for so long. So, let’s break down why diesel-powered vehicles have been a top choice for Indians for decades.

Diesel is economically feasible and easy to find. Its engines have a long lifespan and require less maintenance, and, most importantly, it works very well for trucks carrying heavy loads over long distances , making it an efficient fuel.

These reasons are enough to convince people to keep using diesel!

But here’s the catch: With the rollout of Bharat Stage VI emissions standards, diesel engines are now facing strict requirements to reduce emissions of carbon dioxide, toxic gases, hazardous pollutants, and more.

And here’s the deal: all fuels are now as unclean or as clean as the other,  as pointed out by the executive director at Tata Motors.

In response, major automakers have made heavy investments in upgrading their diesel engines to meet these latest emissions standards.

And diesel, interestingly, possesses an inherent advantage in meeting lower CO2 emission requirements and is a more efficient fuel compared to petrol, as it releases less CO2.

Yet, there’s a looming concern. If further taxation burdens are placed on diesel, this could spell trouble for commercial vehicle makers, potentially bringing degrowth to the segment or even decline.

Do you think, it’s time to say goodbye to diesel forever?

Written By Shivani Singh

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.

Why Switching From Diesel is an Expensive Deal for India?

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