Debt restructuring the way ahead

The December 2022 quarter results of Heritage Foods were below expectations. PRO Only Highlights - Quarterly performance largely backed by improved realisations - Medium-term triggers China plus and protectionist measures for tyre industry - Valuations not inexpensive; but improved medium-term outlook Highlights Higher raw milk prices impacted the performance Value-added products saw higher growth The March 23 quarter performance also likely to be impacted Investors with a longer-term view can add and accumulate on declines The December ’22 quarter results of Heritage Foods (HFL; CMP: Rs171) were below expectations. Companies in the dairy segment continued to remain impacted by higher raw milk prices. Value-added products contributed around 29 percent to the revenues for the 9-month period ended December ’22 against 40 percent targeted for the... … [Read more...] about Heritage Foods: What lies ahead after a soft quarter?

Representative Image Reliance Power on Saturday said its consolidated net loss widened to Rs 291.54 crore in the December 2022 quarter. The company's consolidated net loss was Rs 97.22 crore in the quarter ended December 2021, a BSE filing showed. The total expenses rose to Rs 2,126.33 crore in the quarter from Rs 1,900.05 crore in the year-ago period. Its total income stood at Rs 1,936.29 crore in the quarter against 1,858.93 crore a year ago. The company made a debt repayment of Rs 178 crore in the quarter, and its debt-equity ratio stood at 2.03:1. Read More It reported a net worth of Rs 11,219 crore. It has an operating portfolio of 5,945 MW. The Board of Directors, at its meeting held on Saturday, has appointed Ashok Kumar Pal as the Chief Financial Officer (CFO) of the company from January 29, 2023. Pal is a qualified Chartered Accountant with extensive hands-on experience of over 22 years. He has an established record of success in finance, … [Read more...] about RPower loss widens to Rs 291 crore in Q3

Trade Watchlist Portfolio Message Set Alert live bse live nse live Volume Todays L/H More × Sharekhan's research report on Supreme Industries SIL reported better-than-expected consolidated net profit for Q3FY2023 led by robust volume growth in plastic piping along with higher than expected overall OPMs. Net cash surplus increased q-o-q. Management upped plastic piping volume guidance to 35% plus for FY2023 and overall OPM to 12.5%+. Range bound PVC prices along with healthy demand is expected to drive earnings growth going ahead. Capex of Rs. 700 crore, including carry-forward commitments majorly to augment plastic piping capacities, is likely to aid in strong volume growth. Outlook We retain Buy on Supreme Industries Limited (SIL) with a revised PT of Rs. 2,800, rolling forward our valuation multiple to FY2025E earnings and considering its healthy earnings growth outlook. … [Read more...] about Buy Supreme Industries, target of Rs 2800: Sharekhan

Stripe Inc. (Image: Shutterstock) Digital payments firm Stripe has hired Wall Street banks Goldman Sachs and JP Morgan to explore a public listing and alternatives to allow employees to cash out stakes in the private company, two sources familiar with the matter told Reuters. The move, communicated to Stripe employees in an internal memo earlier on Thursday, would give them an opportunity to sell shares in the company either to private investors or in a public market, the sources said. Either possibility would address the problem that some employee share options are coming up for expiry but Stripe shares are not currently listed. The aim is to have one arrangement or the other in place within a year, the sources said, adding that if private sales are arranged the buyers will cover tax costs. A 2021 round of fundraising valued Stripe at $95 billion, but the sources said the company had recently cut its own assessment of its value to $65 billion. Read More … [Read more...] about Stripe hires Goldman, JP Morgan to explore listing and private share sale

An Air India aircraft. As the Tata group completes the first year of taking over Air India, the airline on Friday said it is finalising a historic order of new aircraft while the airline's chief Campbell Wilson highlighted that the carrier's progress has been quite remarkable. Stepping into the second year of Air India 2.0, Wilson, in a message to employees, acknowledged that there will be challenges along the way and emphasised that more than successes, "it is how we respond to our lapses ... that will define us". The airline has put in place a roadmap under Vihaan.AI for transformation over the next five years and has taken various measures, including committing USD 400 million to refurbish the interiors of its entire wide-body fleet. However, in recent weeks, the carrier has faced certain headwinds related to the unruly behaviour of passengers onboard two international flights and has also been penalised by the aviation regulator DGCA. Listing out major initiatives, … [Read more...] about Air India has made ‘quite remarkable progress’: CEO; airline finalising historic aircraft order

UltraTech Cement | CMP: Rs 6,860 | The stock tumbled over 4 percent after the company reported a consolidated net profit of Rs 1,062.58 crore for the December quarter, down 37.86 percent from the year-ago period. UltraTech Cement's revenue from operations, however, rose 19.53 percent to Rs 15,520.93 crore from Rs 12,984.93 crore in the corresponding quarter of the last year, the Aditya Birla Group company said on January 21. While the profit missed estimates, revenue was higher than expected. According to a brokerage poll conducted by Moneycontrol, net profit was seen at Rs 1,105.2 crore and consolidated revenue at Rs 15,191.5 crore. Trade Watchlist Portfolio Message Set Alert live bse live nse live Volume Todays L/H More × Capacity utilization at India’s largest cement maker, UltraTech Cement , could touch 95 percent to 100 percent in the March quarter, company executives … [Read more...] about UltraTech expects 95-100 percent capacity utilization in fourth quarter

The Life Insurance Corp. of India headquarters in Mumbai. Photographer: Dhiraj Singh/Bloomberg Shares of Indian banks and Life Insurance Corp. of India plunged on Friday amid concerns about their exposure to the Adani Group following a scathing short-seller report. The NSE Bank Nifty Index extended declines of the previous session, underperforming broader stock benchmarks. Bank of Baroda and State Bank of India were among the biggest decliners. “Negative sentiment is prevailing in the market, which is weighing on bank stocks,” said Kranthi Bathini, chief market strategist at WealthMills Securities Pvt. “Some of it is due to worries about Adani collateral,” although there’s also a bout of profit-taking after the rally in recent months, he added. Indian banks have reported sterling results over the past weeks, with their quarterly profits soaring driven by scorching credit demand. That euphoria has now been overshadowed by the drama unfolding in the country after US … [Read more...] about Adani report fallout: Banking, LIC shares crack

Under the scheme, Hinduja Global will buy back 60 lakh shares from eligible shareholders (Representative image) Trade Watchlist Portfolio Message Set Alert live bse live nse live Volume Todays L/H More × Hinduja Global Solutions on January 27 informed the exchanges that its board has fixed March 6 as the record date for the planned share buyback worth up to Rs 1,020 crore. The buyback price has been fixed at Rs 1,700 per share, the outsourcing solutions provider said in a regulatory filing, adding that the the buyback size does not include the transaction costs incurred. Hinduja Global added that these terms of buyback are within the maximum limits approved by the board in its meeting on December 19, 2022 , and as approved by shareholders as a special resolution voted through postal ballot, the company said. Results of the postal ballot were announced on January 27. … [Read more...] about Hinduja Global Solutions fixes March 6 as record date for Rs 1,020 crore buyback

Representative Image Westlife Foodworld, the master franchisee of McDonald's restaurants for West and South India, is looking for an almost three-fold jump in sales up to Rs 4,500 crore in the next five years by 2027, mainly on the back of network expansion, omnichannel approach, according to company officials. As part of network expansion, Westlife Foodworld will add around 300 McDonald's restaurants in the next five years, in which 60 per cent of the new stores are likely to be in the southern region and the rest in the western zone, said the company in its 'Vision 2027'. The company, which through its subsidiary Hardcastle Restaurants operates 337 McDonald's restaurants (as of September 30, 2022), has already commenced the work on the next 200 stores. "Westlife Foodworld's vision 2027 is strategic guidance for our road ahead. We see doubling our sales to (Rs) 40-45 billion in the next 5 years on the back of adding around 300 restaurants by 2027," said Westlife Foodworld … [Read more...] about Westlife eyes almost 3-fold sales growth in next 5 yrs, to add 300 McDonald’s restaurants by 2027

Honasa Consumer, parent of Mamaearth, is looking to raise Rs 400 crore through a fresh issue of shares, apart from an offer for sale of around 4.7 crore shares. “Valuation discovery is a process which will take place over time as we get into deeper conversations with investor community”. That was Mamaearth co-founder Ghazal Alagh’s response after the company faced #FinTwit’s ire for demanding a ‘sky-high, disastrous’ valuation for its public offering. Keeping Alagh’s comment aside, it is certain that Bollywood actor Shilpa Shetty will be laughing all the way to the bank as her Rs 6.8 crore investment in the company will grow multi-fold. The question is by how much? Let’s assume that Mamaearth lists at Nykaa’s current market capitalisation-to-sales (or price-to-sales) valuation, given both are direct-to-consumer (D2C) companies in the beauty and personal care (BPC) space. Nykaa trades at 7.4 times P/S based on FY23 annualised sales. Honasa Consumer, parent of Mamaearth, … [Read more...] about Shilpa Shetty could make a killing from Mamaearth IPO. Here’s how