Top 10 Stocks for 2024

Stocks for 2024

Ashoka Buildcon (CMP: 134; Target: 163; Upside Potential: 22%)

Ashoka Buildcon has an extensive experience of over four decades in the construction segment and has demonstrated strong execution capabilities. With the private sector emerging as the key player across various infrastructure segments, Ashoka Buildcon looks well poised to benefit aided by its robust order inflows, latest technology, innovative construction practices and better project execution. Its current balance order book for road EPC and road HAM stands at Rs. 5,802 crores and Rs. 1,455 crores, comprising around 33.0% and 8.3% of the total order book, respectively. The asset monetization program continues to substantiate Ashoka’s full cycle credentials and efficient use of capital to develop, construct, commission, operate and sell investments. The divestments of the CGD business and road project SPVs would release capital locked in equity of the projects and reduce consolidated project debt by over Rs. 5,616 crores. Thus, we are positive about the long-term prospect of the company and value it at a P/E of 13x based on FY23 earnings to arrive at a target of Rs. 163 per share.

Bharti Airtel (CMP: 973; Target: 1,106; Upside Potential: 14%)

The telecom company remains on strong footing with industry-leading ARPU, higher focus on premiumization, a growing subscriber base and earlier tariff hikes. The industry pricing environment has become more favourable, raising expectations for regular tariff hikes. We expect ARPU to improve led by increasing tariffs, 2G to 4G migrations, prepaid to post-paid conversions and rising data monetization. The India business continued on a strong footing, with the company consistently delivering healthy revenue growth. Other businesses such as Fixed Broadband and Enterprise, are witnessing strong traction and will drive revenue growth in the medium term. Further, the company has an excellent track record in business execution and is expected to deliver robust performance led by broad-based growth across segments. We are, thus, positive about the long-term prospects of the company and value it at a P/E of 38x based on FY23 earnings to arrive at a target of Rs. 1,106 per share.

Coal India (CMP: 332; Target: 370; Upside Potential: 12%)

Coal India Limited plays a significant role in achieving the nation’s energy security. The company recorded the highest-ever production and offtake in FY23 at 703 MT and 695 MT, respectively, of which ~85% of the supply was to the power sector. Based on the demand projection in “Vision 2024” for the coal sector in India and subsequent demand projection on CIL, a roadmap has been prepared wherein CIL has envisioned 1 Billion Tonne (BT) production in FY25-26 to meet the coal demand of the country. CIL has identified all required resources to achieve this target, including significant projects contributing to its 1 BT production plan. We believe that strategic relevance of Coal India for India’s energy security along with its focus on improving operational efficiencies warrants a positive outlook on the company. We, thus, value the company at a P/E of 8x based on FY23 earnings to arrive at a target of Rs. 370 per share.

Colgate Palmolive (CMP: 2,180; Target: 2,500; Upside Potential: 15%)

It is to be noted that 80% of the urban population is still not brushing twice and 55% of the rural population does not use toothpaste daily, implying a huge growth opportunity in oral care business. In the quarter gone by, the business also saw green shoots in rural recovery and recovery in its volumes. Further, it is also looking for relevant opportunities from the global portfolio which can be introduced in the domestic markets. With the entry of new CEO Ms. Prabha Narasimhan (ex-HUL head in the beauty and personal care segment) and her strategies to further augment the business, we remain positive on the overall growth story. On the valuation front, we are positive about the long-term prospect of the company and value it at a P/E of 50x based on FY23 earnings to arrive at a target of Rs. 2,500 per share.

Dabur India (CMP: 537; Target: 640; Upside Potential: 19%)

Dabur is a professionally run company which is hungry for growth and market share and they have proved it by gaining market share across categories like hair oil and honey. Out of net worth of Rs. 9300 crores, there is net cash of Rs. 7,000 crores which can be used to expand in high growth categories like food where they recently acquired Badshah Masala for close to Rs. 480 crores at just 2x sales where double-digit growth is possible. The company’s CEO is also seeing strong recovery in rural India which is 40% of India sales for the company along with the upcoming winter quarter which is generally strong for Dabur due to high margin products like Chyawanprash doing well. On the financial front, we believe that soft raw material prices can help the company to achieve the guided EBITDA margin of 19.5%. We remain positive on the company as it is a proven business available at close to 40x FY25 earnings, ROICs are very strong, management team is hungry for growth and commentary for near term is improving.

Hindalco Industries (CMP: 507; Target: 650: Upside Potential: 28%)

It is interesting to note that Novelis, a subsidiary of Hindalco Industries, contributes 70% of Hindalco’s EBITDA. With Novelis reporting excellent results and providing very good long-term outlook, we remain positive on the company. 60% of Novelis volumes come from beverage can plus two thirds of new capex is for beverage can that is fully contracted at higher margins. As a result, we believe that this business should command higher value as it is annuity cash flow business. In automobile space, aluminium use is likely to increase due to light weighting and EVs which should benefit the company as it constitutes 20% of Novelis volumes with higher margins. Moreover, limited upcoming aluminium smelting capacity due to very low RoE and need of electricity would help the company to maintain USD 700 per ton EBITDA going forward. We remain constructive on the company as the US Fed’s less hawkish stance and some positivity in China is likely to cushion aluminium prices. 

Jio Financial Services (CMP: 226; Target: 350; Upside Potential: 55%)

Jio Financial Services (JFL) is a decadal opportunity and is a well-capitalised financial services arm of Mukesh Ambani family where they directly own stake equal to their stake in Reliance Industries. JFL holds 6% stake in Reliance Industries which is valued at around Rs. 1.05 lakh crores. Although this money cannot be leveraged upon to grow the book, it can always act as a liquid asset which can be sold gradually when JFL lending business really scales up. We believe that the cost of funds for JFL will be hardly 50 bps above Reliance’s borrowing cost and that will be competitive against most other NBFCs in the market. On the other hand, huge data base due to largest store network and highest number of subscribers can be leveraged as potential customers which places the company on a strong growth trajectory. Moreover, the entire team is getting built under the financial services veteran Mr. KV Kamath who has the resources of JFL to attract the best talent for various functions. Overall, we believe that JFL is a best way to play financialisaton and formalisation of the Indian economy.

Landmark Cars (CMP: 727; Target: 1,000; Upside Potential: 38%)

With increasing disposable income and aspirations, we believe that the penetration of above Rs. 15 lakh cars will increase multi-fold along with future EV launches by MG Motor and M&M will lead to new earnings growth trajectory for Landmark from FY25. OEMs such as M&M who are very successful along with MG Motor which is planning to put a new plant in India are partnering with Landmark as it is a listed company with professional approach and excellent after sales offering. We expect EPS to rise materially from Q3FY24 and anticipate Rs. 400 crores debt which is majorly working capital to decrease as the management is clearly focussed on reducing debt. Based on our assumption, Landmark Cars is trading at 25x FY25 earnings and offers multiple years of 25% earnings CAGR potential with more than 20% ROE and steady compounding business of after sales which has higher margin, ROCE and predictable revenue stream.

Minda Corporation (CMP: 340; Target: 500; Upside Potential: 47%)

Minda is a leading automotive component supplier catering to all key segments of PV, 2Ws, CVs and tractors with a diversified product portfolio. Minda is the best proxy to play in 2-wheeler sales which is currently doing extremely well. The company has received lifetime orders worth Rs. 7,700 crores of which 46% came from replacement business and 54% came from new business. We feel that with such strong order book and all EV ready products, the company can easily grow above 20% for next 3-5 years. The company is continuously working on products that are expected to have 3-4x content value compared to traditional products. The management has also guided for 20% revenue CAGR, with margins also inching upwards to 13% from the current 11%.  With the stock available at 7% cash flow yield on FY25e with ROE of 20% and having great growth prospects, we feel that a good upside is still left in the stock.

Puravankara Limited (CMP: 157; Target: 176; Upside Potential: 12%)

We remain optimistic about the company sustaining its pre-sales growth momentum through its robust pipeline of projects of about 15 msqft – 3.60 msqft in Puravankara, 7.97 msqft in Provident and 3.68 msqft in Purva Land. The non-Bangalore projects encompass 65% of the launch pipeline and other upcoming projects. Of the pipeline, the management expects the opening of 6-7 msqft this year and the balance inventory to be opened in a phased manner next year and the year after. The company expects the surplus from pipeline projects to be Rs. 3,300 crores, with cashflow visibility of Rs. 6,730 crores in the next 3-4 years. To drive future growth, the business is also focusing on scouting new acquisitions to expand further and enter new markets. The company has also witnessed improvement in key operating metrics including booking volumes and realizations and expects improvement in EBITDA margins going ahead. We are, thus, positive about the long-term prospect of the company and expect a share price of Rs. 176 per share in a one-year timeframe.

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Super 7 Stocks

Here is a list of 7 stocks especially curated by StoxBox research for the month of November 2023.

Bajaj Auto

Bajaj Auto’s recent performance has been strong, thanks to the growth in its domestic motorcycle and three-wheeler segments. They have managed to maintain a good market share of 13.39% in Q2 FY 24, which is impressive considering the market’s ups and downs.

One key factor contributing to their success is their focus on selling premium motorcycles, especially those with engine sizes of 125cc and above. In this category, they have outperformed the market by six times.

They are also doing well in the three-wheeler market, with high sales and a successful launch of an electric three-wheeler in May 2023. They have achieved a 9% market share in this segment, and in Agra, where they first launched it, they are leading with a 68% share.

Furthermore, Bajaj has improved its market share in the two-wheeler market from 4.5% to 11% in Q2 FY 24 by adjusting prices and launching better versions of their Chetak brand. They have also expanded to more cities, going from 88 to 120.

Considering all this, we recommend buying Bajaj Auto at the current price of Rs 5350, with a target of Rs 5784 and a stop loss of Rs 5199 in the short term.

Gland Pharma

Gland Pharma is doing well in its business, and they have a positive outlook for the future. In Q2 FY 24, they introduced 34 products in the US market, including nine completely new ones. They plan to launch more than 60 products in the US and are keeping an eye on drug shortages, especially in oncology. Their core markets and India are performing well, and they are working on making their operations more efficient to increase profits.

They also acquired Cenexi, which has helped them expand in Europe. This acquisition contributed to their finances, even though there were some challenges due to a shutdown in France during the summer. Gland Pharma sees many benefits from Cenexi, such as access to new technologies, markets, cost savings, and moving some manufacturing to India. They expect Cenexi’s profits to improve in a few quarters, although it might take some time to reach high margins.

Considering all this, we recommend buying Gland Pharma at the current price of Rs 1594, with a target of Rs 1725 and a stop loss of Rs 1543 in the short term.


IRFC (Indian Railway Finance Corporation) plays a crucial role in helping Indian Railways with their plans to develop railway infrastructure. It’s like a financial arm that supports Indian Railways by providing the necessary funds for various projects, including buying trains and improving railway infrastructure. The government is putting a lot of emphasis on developing infrastructure in the country, and the railway sector is getting more money for its projects.

In the latest budget for FY 2023-24, Indian Railways received a significant allocation of Rs 2.4 lakh crores, which is the highest ever. This money will be used for things like building new railway lines, expanding tracks, making railways more eco-friendly, and other improvements. IRFC helps fund these projects by lending money to Indian Railways.

We suggest buying IRFC at the current price of Rs 73.40, with a target price of Rs 79.90 and a stop loss at Rs 70.85 in the short term.

L G Balakrishnan Bros Ltd.

L G Balakrishnan Bros Ltd. (LGBB) is a major player in the 2-wheeler industry, and most of its revenue comes from this segment. In the first half of FY 24, the 2-wheeler segment saw a 7% year-on-year growth, although it hasn’t reached its peak levels from H1 FY19 yet. However, recent data in October showed a strong double-digit growth in domestic 2-wheeler sales, thanks to the festive season and signs of economic recovery in rural areas. This is a positive sign for LGBB’s future prospects.

The company is also expanding its manufacturing capabilities by building a new plant for making power transmission chains and related products for cars and industries. This new plant is set to start commercial production in Q4 FY24 and is expected to generate around Rs 200 crores in annual turnover by FY25. Despite a modest 3.8% YoY revenue growth in Q2 FY24, the company maintains a 10% revenue growth target and a 19% margin target.

In summary, we recommend buying LGBB at the current price of Rs 1100, with a target of Rs 1195 and a stop loss at Rs 1058 in the short term.

Sanofi India

Sanofi India has decided to split its consumer healthcare business into a separate company called Sanofi Consumer Healthcare India Limited. This move will allow Sanofi India to concentrate on specialised medical areas and bring its global medical innovations to India. It should also create more value for the company’s shareholders and improve its overall performance. By separating the pharmaceutical and consumer healthcare businesses, each part can have its own dedicated management and focus on its unique growth opportunities.

Sanofi India’s growth is expected to come from increased sales of insulin and strong sales of key brands. They are also working on reducing costs to improve their profitability. One of their important products, Lantus (insulin glargine), faced a price drop due to government regulations, but it won’t impact their profits significantly because they import it from their parent company at fair prices. Overall, Sanofi India’s revenue is likely to grow in FY 24 as they expand their insulin products and introduce new innovative ones.

To sum it up, we recommend buying Sanofi India at the current price of Rs 7655, with a target of Rs 8297 and a stop loss at Rs 7487 in the short term.

Satin Creditcare Network

Satin Creditcare Network has made improvements in how it manages its loans and customers. They’ve focused on collecting payments, making sure customers are reliable, and becoming more efficient. This effort has paid off, with a high collection rate of 99.6% in Q1 FY24. Their loan quality is also better compared to many other similar companies. Loans made after July 2021 have very low delinquency rates, which is better than the industry average. Their bad loans (GNPA) decreased from 3.3% in Q4 FY23 to 2.5% in Q1 FY24. They have set aside enough money for potential losses, which is a good sign. The company expects its loan quality to remain stable.

Satin Creditcare Network plans to grow its assets under management (AUM) by 25% in FY 24. They will focus on housing and the MSME segment to achieve this growth. Their extensive network allows them to reach more customers, and they believe the microfinance industry will continue to grow, with NBFC MFIs like them playing a significant role. Given their experience and presence, they are well-positioned to take advantage of this opportunity.

In summary, we recommend buying Satin Creditcare Network at the current price of Rs 256, with a target of Rs 279 and a stop loss at Rs 247 in the short term.

Torrent Power

Torrent Power has a strong position in the power distribution business. They are the exclusive licensee for power distribution in several cities like Ahmedabad, Surat, Gandhinagar, and others. They also serve as a power distribution franchisee for additional areas. With the recent addition of DNDD, they now provide power to over 4 million customers in various sectors. Their diverse customer base, including urban areas, ensures they can efficiently collect payments from nearly all their customers.

Torrent Power is also focused on expanding its clean energy portfolio. They plan to acquire and develop renewable energy projects like solar, wind, and hydroelectricity. They are exploring opportunities in green hydrogen, a promising new sector. Through these efforts, they have a total generation capacity of around 4.1 GW, mainly from clean sources like gas and renewables.

In summary, we recommend buying Torrent Power at the current price of Rs 750, with a target of Rs 818 and a stop loss at Rs 720 in the short term.

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Eicher Motor Quarterly Result Update

Eicher Motors Hits Top Gear

Eicher Motors, the company behind the popular Royal Enfield motorcycles, recently announced its financial results for the second quarter of the fiscal year 2024, and they’ve done exceptionally well. Their performance was better than what most market experts predicted. The company earned more money (revenue) than expected, mainly due to high sales volume, with their income growing both compared to last year and the previous quarter.

One of the highlights of this quarter was the sale of Royal Enfield bikes. They sold 10% more bikes than the same time last year, reaching over 229,000 units. Not just that, they also made more money per bike sold, thanks to smart pricing strategies and choosing the right mix of products to sell. However, it’s worth noting that their international sales dropped by about 21%, yet the overall income from sales continued to rise.

The company’s earnings before interest, taxes, depreciation, and amortisation (EBITDA) – a measure of a company’s overall financial performance – also saw a significant jump. This increase can be attributed to lower costs for materials and the success of their profitable models. Despite these gains, the company did see a rise in other types of expenses.

Another notable aspect was their ‘other income’, which includes money made from investments and other non-core business activities. This increased considerably, partly due to their earnings from VECV, a joint venture in the commercial vehicle segment, and a one-time grant they received from the Tamil Nadu government. Even after adjusting for this one-time income, their net profit exceeded market expectations.

Eicher Motors has also been efficient in managing its finances, as evident from the substantial free cash flow – a measure of financial performance that shows how much cash a company generates. This is a positive sign, indicating good health and prospects for future investment and growth.

On the expansion front, Eicher Motors is continuously growing its presence. In India, they have a strong network of over 2,000 stores, including both large and smaller ‘studio’ stores. They are planning to add more stores annually. Internationally, they are present in several countries through exclusive outlets and multi-brand stores. The company’s strategic assembly plants in Colombia, Brazil, Argentina, Nepal, and Thailand highlight its ambition to expand globally.

Despite facing new competition in the cruiser bike segment from companies like Bajaj-Triumph and Hero-Harley, Eicher Motors remains strong. Their diverse range of models, combined with a robust service network and a passionate community of bikers, gives them a competitive edge. The company’s future growth is expected to be driven by its continuous product innovation, network expansion, and solid market presence. However, they do anticipate some challenges in terms of rising costs related to new product launches and global expansion efforts.

In short, Eicher Motors is doing really well right now and their plans look good for keeping this success going in the future.

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Apollo Tyres Quarterly Result Update

Apollo Tyres: Not Tyre-d of making profits!

Apollo Tyres, a big tyre company, had a great second quarter this financial year. They did really well because they sold more tyres to both car manufacturers (OEMs) and regular customers replacing their old tyres. They also spent less on materials and managed their prices smartly. They made more money than last year and a bit more than last quarter too.

Their profit (EBITDA) went up a lot because they kept their costs under control and didn’t have to spend as much on materials. Their net profit (PAT) also grew a lot, helped by extra income from other sources.

In India, Apollo Tyres did well, especially because they were efficient and kept costs down. However, they sold fewer tyres abroad compared to last year, but more than the previous quarter. In Europe, they made less money because there were too many tyres in the market and the winter wasn’t that harsh. But they still managed to make a bit more profit there.

Looking ahead, Apollo Tyres is hopeful. They think they’ll sell more tyres in the next few months because exports should get better, car manufacturers will need more tyres, and more people will replace their old tyres. They’re not planning to raise prices much but will focus on being more efficient to manage costs. In Europe, they’re selling more high-end tyres.

The company is careful about not spending too much money and wants to make sure they make good profits. They believe they can keep growing and handle any challenges, thanks to their smart strategies and focus on keeping costs in check. Overall, things look good for Apollo Tyres.

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Bosch Ltd Quarterly Result Update

Bosch: Eyeing Electric Future

Bosch Ltd., known for its automotive and technology products, recently shared its financial results for the second quarter of the fiscal year 2024. They reported a sales increase of 12.8% compared to last year, reaching Rs. 4,130 crores. However, this was slightly less than what experts expected and a small drop from the previous quarter.

Most of their sales came from their automotive business, where they make parts for vehicles like heavy commercial vehicles (HCVs) and personal vehicles (PVs). This part of their business did well, growing by 11.7% to Rs. 3,431 crores. They also saw good growth in their non-automotive businesses, like tools and security systems, which grew by 9.9% to Rs. 1,007 crores.

However, their profit margin (the percentage of sales that turns into profit) was a bit lower than before. This was due to selling less profitable products, spending more on goods they didn’t make themselves, and the impact of foreign exchange rates. Their overall profits (EBITDA) still grew by 14% from last year and 5% from the previous quarter, thanks to lower costs in some areas and higher sales.

Their net profit after adjusting for certain items was Rs. 403.3 crores, up 8.3% from last year but down 1.4% from the last quarter. They also had a big one-time gain from selling part of their business.

Looking ahead, Bosch plans to keep innovating and adapting to market changes. They’ve been working on a lot of new projects for cleaner vehicle engines and are expanding their presence in digital platforms and electric vehicles. They’ve committed to investing a lot of money in these areas over the next five years.

Some highlights from their recent business updates include:

  •       Production of personal and commercial vehicles went up, but tractors and two-wheelers saw a decline.
  •       They did really well in the powertrain solutions segment, which includes parts that help reduce exhaust emissions.
  •       Their two-wheeler business grew thanks to their focus on premium motorcycles.
  •       They expect good sales in consumer products and building technologies in the coming months.
  •       They’re working on localizing more parts in India to reduce reliance on imports.
  •       They’re testing a hydrogen-powered truck in Bengaluru.
  •       Exports, especially to Europe, have been slow.

Read more about the other results declared in Q4

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Fiem Industries Quarterly Result Update

Fiem Industries in the EV Spotlight

Fiem Industries, which specialises in automotive components like lighting and mirrors, recently shared its financial results for the second quarter of the fiscal year 2024. They managed quite well despite the slow growth in the two-wheeler (2W) industry. Their total sales were a bit lower than last year, down by 3%, but they did see a 7.3% increase from the previous quarter, earning Rs. 510 crores.

Their operating profit for the quarter was Rs. 68.1 crores, which is a slight decrease from last year but a good increase from the last quarter. Their profit after tax (PAT) was Rs. 43.5 crores, growing nicely both from last year and the previous quarter.

In their different business areas, the lighting segment’s sales dropped a little, while the plastic parts segment saw a bigger decline. However, their rear-view mirror segment did see some growth.

A key development for Fiem is their partnership with Gogoro, a company in the electric vehicle (EV) sector. This collaboration is about making important EV parts like the Hub Motor Assembly and Motor Control Unit. Fiem is starting by targeting the Indian market and expects to increase the value of the components they provide over time. They’ve already started supplying some parts to Gogoro and plan to supply other EV companies too.

Fiem currently has a 6% share in the EV market, supplying to big names like Ola and Hero Electric. They’re well-placed to benefit from the expected growth in the EV market over the next few years.

Looking ahead, Fiem is likely to become an important player in the EV world. They’re already strong in the two-wheeler lighting market and their partnership with Gogoro will help them expand in the EV sector. Their financial stability and diverse client base, including new clients like Polaris, put them in a good position for future growth.

Some highlights from their recent updates include:

  • Expecting an increase in two-wheeler sales in the second half of the year.
  • Working on new projects with Yamaha and starting supplies for new models like Jupiter 125.
  • EV revenue was around 6% this quarter, and they’ve added new brands in this segment.
  • They spent Rs. 51 crores on new projects in the first half of the year and plan to spend a total of Rs. 100 crores for the year.
  • They’re recovering from a fire incident and are spending on replacing damaged equipment.
  • They expect to see good results from their Gogoro partnership soon.
  • While Yamaha’s export business is down, the domestic revenue is growing, and they have several new projects planned.
  • They’re continuing their business with Honda Motorcycle & Scooter India (HMSI) and are expecting to start supplying two new models from Hero next year.
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GHCL Quarterly Result Update

GHCL in Rough Waters

GHCL, a company involved in manufacturing Soda Ash, didn’t do too well in the second quarter of the fiscal year 2024. Their sales dropped by 31.5% compared to last year and 20.8% from the previous quarter, making Rs. 8,054 million. This drop happened mainly because they were making less money from each unit of Soda Ash sold and their sales volume decreased.

Their earnings before interest, taxes, depreciation, and amortisation (EBITDA) – which is like a measure of their overall business performance – also went down by 47.6% from last year. Their net profit (the money left after paying all their costs) decreased by 50.7% compared to last year and was down 66.5% from the previous quarter.

The global market for Soda Ash isn’t very strong right now, but GHCL is starting to see some signs of improvement in the Indian market, especially from sectors related to the environment like solar glass, lithium carbonate, and sodium bicarbonate, which is used for cleaning gases.

Looking ahead, they expect the price of Soda Ash to stay low for the next 1-2 quarters because of slow demand growth and new supplies entering the market. However, they hope things will get better due to increasing demand from environmentally focused sectors.

GHCL is facing challenges with low prices due to cheap imports from Russia and Turkey. Even though their costs might go down, the impact of lower selling prices might be more significant. To meet the increasing demand in India, they are working on a new project to expand their production capacity, which will make them the largest Soda Ash producer in the country.

The overall demand for Soda Ash is expected to remain weak in the near future, partly because GHCL had to shut down for maintenance in October. The Soda Ash market is currently oversupplied in some regions, leading to lower prices.

In the long run, they expect the demand for Soda Ash to remain strong, especially from industries like solar glass and lithium. They predict a significant increase in demand for lithium in the next few years.

GHCL is focusing on growth areas like producing vacuum salt using waste energy and increasing their sodium bicarbonate production capacity. They also noted that China might reduce its international trade presence to focus more on its domestic market, and that soft demand trends are seen globally, including in the Americas, China, and Europe. This could affect their business performance, as Turkey is aggressively exporting Soda Ash to Asian markets.

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Eris Lifesciences Ltd Quarterly Result Update

Healthcare Giant Eris Lifesciences Expands Reach

Eris Lifesciences Ltd., a healthcare company, recently shared its financial results for the second quarter of the fiscal year 2024. They did really well, making more money than expected. Their revenue (the total money made from sales) was up by 9.7% compared to last year, reaching Rs. 5,053 million, which was more than what experts thought they would make.

This success came mainly from their business of selling branded medicines and from including the results of Oaknet, a company they recently merged with. Their profits before considering certain expenses (EBITDA) also grew by 19.6% compared to last year. Their net income (the money left after all expenses) was up by 2.5% from last year and 30.6% from the previous quarter.

One of the big moves Eris Lifesciences made recently was buying the kidney-related (nephrology) and skin-related (dermatology) medicine businesses from another company, Biocon, for Rs. 3.6 billion. This purchase helps them start selling medicines in the nephrology area, adding to their strong presence in heart and diabetes care.

Looking at the bigger picture, Eris Lifesciences has been doing well, especially with the businesses it has acquired, like Oaknet and brands from Glenmark and Dr. Reddy. The kidney medicine market they are entering is worth about Rs. 3,000 crores a year and is growing. Eris plans to keep growing and is focusing on areas like heart disease, diabetes, vitamins/minerals/nutrients, skin care, and kidney care. 

They’re planning to launch new products and expect to do really well in these markets over the next few years, especially as more opportunities come up with certain patents expiring.


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Lumax Industries Ltd Quarterly Result Update

Lumax Industries Gears Up for a Bright Future in Auto Lighting

Lumax Industries Ltd., which makes automotive lighting, didn’t have the best second quarter in the fiscal year 2024. Their sales grew a little bit, by 3.8% compared to last year, reaching Rs. 643.8 crores. But this was less than what they hoped for, mainly because they didn’t sell as much in the two-wheeler (like motorcycles and scooters) segment.

Their profits before considering things like interest and taxes (EBITDA) went down by 11.5% from last year, but it was better than the last quarter. One reason for this decrease was the costs of starting a new plant in Pune and higher expenses for their staff. Their net profit (how much money they made after all expenses) also dropped compared to last year but was a bit better than the last quarter.

The good news is that Lumax has a lot of orders waiting to be filled, worth Rs. 2,200 crores. Most of these orders are for car parts, but there are also orders for two-wheelers, commercial vehicles, and agricultural equipment. They have a significant number of orders for electric vehicle parts too, about 30% of the total, and they expect this to increase.

They plan to complete 25% of these orders this year, most of them next year, and the rest the year after. Their new Chakan plant, which just started operating, is expected to make a lot of money for them in the next couple of years.

Even though they made less money from Maruti Suzuki Ltd. this quarter, they’re expecting things to pick up with this important client. They have big orders from Maruti Suzuki and are also expecting more business from Mahindra & Mahindra and Tata Motors starting next year, especially from their new facility.

Lumax has been selling more LED lights over the past five years, which now make up a significant part of their business. They are working on making more of these LED parts in India instead of importing them, which should help them save costs and make more profit.

Overall, despite some challenges, Lumax is in a good position. They’re growing, especially with their new plant, and their focus on electric vehicles and LEDs shows they’re keeping up with market trends. They’re confident about making better profits in the future and continue to be a strong player in the automotive lighting industry.

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Axis Bank Quarterly Result Update

Axis Bank – Q2FY24 Result Update

Sector Outlook – Positive

Axis Bank did well in the second quarter of FY24, making more money from interest, managing its expenses, and setting aside some money for potential issues. Their profits were higher than expected, which is a good sign for them.

In the second quarter, their Net Interest Income, which is the money they make from lending, was about Rs 12,315 crores. This showed a 3.0% increase from the previous quarter and an 18.9% increase from the same time last year. Pre-provision operating profit (PPOP), which was Rs 8,632 crores. This was a 2.1% decrease from the previous quarter but an 11.9% increase from last year.

The bank set aside Rs 815 crores for provisions in Q2FY24, which was less than the Rs 1,035 crores in the first quarter of the fiscal year but more than the Rs 550 crores in the same period last year. This increase was mainly because they didn’t need to use as much money for COVID-related issues in the second quarter. The bank made a profit of Rs 5,864 crores in the second quarter, which was a 1.2% increase from the previous quarter and a 10.0% increase from last year. 

Key Concall Highlights

  • Axis Bank has been doing well lately, managing to make good returns on its investments while taking on less risk. In the second quarter of the fiscal year 2023-24, the bank saw a record high in retail loans due to balanced growth across its different loan products.
  • The bank expects its loans and deposits to grow by around 13% for the whole fiscal year, excluding any impact from mergers. They’ve also managed to earn more money from the interest on their assets, which has helped them make more profit.
  • One reason for their increased profits is that they have less money tied up in low-yield investments compared to the previous year. The bank’s management has plans to keep improving their profits by changing the types of loans they offer and charging higher interest rates.
  • The bank recently acquired a retail business from Citi, which is expected to bring in more profit once it’s fully integrated. However, it may take some time for this integration to be completed.
  • The bank is also in a good position when it comes to setting aside money for potential losses. They have a strong provision coverage ratio, which is better than most other banks.
  • Overall, Axis Bank is making smart moves to improve its profits and manage its risks effectively. They are focused on growing their business in a sustainable way.

Valuation and Outlook

Axis Bank had a really good quarter in the second quarter of the fiscal year 2023-24. They performed well because their credit card business grew a lot, and they gave out more loans in the small and mid-sized segments, which earned them more money. This helped them make slightly more money from their investments when many other banks were struggling. There was a small dip in their profit this quarter, but it was mostly because they had some extra costs from merging with CITI Bank. However, this merger will eventually bring them more customers who can help them make more money in the long run.

The bank did a good job of managing their loans and didn’t have too many bad ones, which is a sign that they are careful about who they lend money to. This shows that they are likely to have good quality loans in the future. In the coming months, with interest rates expected to remain high, Axis Bank is likely to do well. They are also focusing on providing better services to their customers, which should help them make more money. Overall, Axis Bank looks like it will continue to perform well in the medium term, with a positive outlook and good financial metrics in place. Their balanced approach of having physical branches and using digital technology gives them an advantage over other banks.

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