Bajaj Auto Q2FY25 Financials: Strong Revenue and Profit Growth, Margins Improve

2021 की शुरुआत के बाद, वायदा बाजार में सोने की कीमतें मार्च में एक साल के निचले स्तर 43320 रुपये पर आ गई, जो जून में 49700 रुपये के वार्षिक उच्च स्तर पर पहुंच गईं। शेष वर्ष के लिए, सोना 45500 रुपये से 48000 रुपये के बीच एक सीमित दायरे में कारोबार करता रहा।

बढ़ती मुद्रास्फीति, और अनिश्चितता से 2021 में सोने और चांदी के भाव को सपोर्ट रहा लेकिन, 2021 में, निवेशकों की जोखिम लेने की क्षमता बढ़ने से सोने की मांग में 9 प्रतिशत की गिरावट आई, मुख्य रूप से एक्सचेंज-ट्रेडेड फंड (ईटीएफ) श्रेणी से निवेश कम हुआ।

पहली तीन तिमाहियों में, केंद्रीय बैंक की खरीद दोगुनी रही और आभूषण की मांग में 50 प्रतिशत की वृद्धि से ईटीएफ मांग में गिरावट की भरपाई हुई। भारत में सोने के निवेश और आभूषणों की मांग शानदार रही है। भारतीय गोल्ड ईटीएफ सोने में निवेश को आकर्षित करता रहा।

भारतीय सोने का आयात भी बहुत मजबूत है और 2021 में प्रतिबंधों में ढील, विवाह की सबसे अधिक संख्या आदि के कारण 900 टन के आंकड़े को पार करने की उम्मीद है। यूके, यूएस यूरोप और एशिया में ओमीक्रॉन के मामले लगातार बढ़ रहे है।

2021 में फिर उच्च स्तर पर मुद्रा की छपाई ने खर्च को बढ़ावा दिया जिससे मुद्रास्फीति बढ़ी। 2022 के लिए सोने की तस्वीर आशाजनक प्रतीत होती है, अगले साल की पहली छमाही में सोने के लिए अच्छा माहौल रह सकता है। निवेशकों की रुचि सोने और चांदी में बढ़ सकती हैं, क्योकि आगामी अमेरिकी मध्यावधि चुनावों से संबंधित राजनीतिक अनिश्चितताएं, अमेरिकी बजटीय खींचतान, अपेक्षाकृत लगातार केंद्रीय बैंको की सोने में खरीद, और धीमी होती वैश्विक विकास दर और सुधार शामिल हैं।

रुपये में पिछले सप्ताह भी 1 प्रतिशत की मजबूती दर्ज की गई जिसके कारण घरेलु वायदा बाजार में सोने और चांदी के भाव में गिरावट रही लेकिन कीमतों में निचले स्तरों से सुधार देखने को मिला। सोना पिछले सप्ताह 0.41 प्रतिशत की गिरावट के साथ 47900 रुपये प्रति दस ग्राम जबकि चांदी  के भाव में हल्की तेज़ी रही और यह 62300 रुपये प्रति किलो के करीब रहे।

तकनिकी विश्लेषण

इस सप्ताह सोने और चांदी के भाव सकारात्मक दायरे में रह सकते है।  सोने में 47500 रुपये पर सपोर्ट और 48300 रुपये पर प्रतिरोध है। चांदी में 61000 रुपये पर सपोर्ट और 63000 रुपये पर प्रतिरोध है।

SOBHA

Sobha Ltd. was founded in 1995 and is a medium-sized enterprise (market capitalization 8,492.97 rupees) operated in the real estate sector.

Sobha Ltd's most important product/sales segment.

It includes real estate development, construction income, glazing income, interior construction income, financial services income, concrete blocks, land development rights, rental income, and scraps for the year ended March 31, 2021.

According to the company's report for the quarter ending at 30092021, consolidated total revenue was 832.30 lakh crore, an increase of 58.53% from total revenue of 525.00 rupees in the previous quarter and a 52.46% increase from last year's total revenue of 545.90 rupees.

The company reported a net income after tax of 48.30 rupees for the most recent quarter. The company's top management includes Ravi PNC Menon, J C Sharma, TP Seetharam, R V S Rao, Anup Shah, K N Srivathsala and Sumeet Jagdish Puri.

The company is BSR & Co as an auditor. I have an LLP. As of 30092021, the company has issued a total of 9.48 lakh crore shares. Founded in 1975, Balrampur Chini Mills Ltd. is a small business (market capitalization 7,498.47 rupees) operating in the sugar sector. 2.2.

Balarampur Chini

Balrampur Chini Mills Ltd's most important product/sales segment. Includes sugar, alcohol (industrial), export incentives, electricity, bagasse and other operating income for the fiscal year ended March 31, 2021.

According to the company's report for the quarter ending at 30092021, total consolidated revenue was Rs. 121.823 billion, up 6.33% from Rs. 114.568 billion in the previous quarter and down Rs. 129.437 billion by 5.88% in the same period last year.

The company reported a net income after tax of Rs 81.11 for the most recent quarter.

The company's top management includes Sumito Mazmda, Vivek Saraogi and PhD. Arvind Krishna Saxena, Mr. Naresh Dayal, Mr DK Mittal, Mr. Krishnava Dutt, Ms. VeenaHingarh, Ms. Mamta Binani The company's auditor is Lodha & Co. is. As of 29102021, the company has issued a total of 20.40 lakh shares.

Building KNR

Founded in  1995,  KNR Constructions Ltd. is a mid-sized company (market capitalization: Rs 8,432.82) operating in the infrastructure sector.

KNR Constructions Ltd's most important product/sales segment. Includes contract revenue and other operating income for the fiscal year ending March 2021.

According to the company's report for the quarter ending at 30092021, the consolidated total revenue was 853.23 rupees, 5.07% higher than the total revenue of 812.09 rupees in the previous quarter and 28.52% higher than the total revenue of 812.09 rupees 663.89 rupees last year.

The company reported a net income after tax of Rs 70.27 for the most recent quarter.

The company's top management includes B V Rama Rao, K Narasimha Reddy, K Jalandhar Reddy, K Yashoda, LB Reddy and G Chandra Rekha. The company's auditor is KP Rao & Co. As of 30092021

Financial planning is important for all as it gives you clarity of exactly what you want to do in your life. You can understand its importance from a statement once our client said: Currently I am focusing on the financial plan you have given me. Now I am relaxed and I may have a peaceful night today”. Now, I am sure that you will handle all my retirement plans as well”

Before getting deep down into it: let’s understand the importance of financial planning:

• It gives direction to your goals and dreams. Financial planning helps you better understand your goals, why you need to reach them, and how they affect other aspects of your life and finances.
• By making a plan, you can manage inflation. They know the prices of various things and activities. You plan your budget better. Financial planning gives you discipline about money. Do not use it unnecessarily. You are on the lookout for your savings and expenses.
• By planning your finances, you are planning for the future. You will gain insight into your finances in the future. You have a good idea of ​​how much money you have, for example after 10 years. You know what your investment should produce to reach your goals.

Importance of Financial Planning in Every Aspect

Below, we have explained the importance of financial planning and why it is necessary. It will give you a clear idea, read below.

Income

When you have a financial plan, you will be able to better manage your income. They know how much you earn on salaries, interest, dividends and more. This will help you understand how much you are making and whether it is enough to reach your goals.

Spending

Spend money on basic needs, other needs and luxuries. When we plan our finances, we keep an eye on our expenses. Even if you go outboard in a month, you know how much you'll cut in the next month to keep your budget. As lifestyles and lifestyles change, so do the spending. This helps us determine our income needs and can change our income opportunities accordingly.

Save

You record your income and expenses in the plan. Therefore, you know your savings. The plan gives you an idea of ​​how much money you will need to reach your goals. You can create a budget that allows you to assess whether you are within budget or spend a lot of money. This will help you understand your savings rate and how much you need to save to reach your goal.

Investment

Planning helps you choose the right investment based on your income capacity, risk profile, and goals. The plan includes investment portfolio and asset allocation details. This allows you to build a balanced portfolio at all times.

Taxes

It's not a wise idea to think about taxes in the last week of March. You can use financial planning to visualize tax outflows at the beginning of a fiscal year. You can legally plan your finances to pay the lowest possible taxes.

Retirement

We all want a carefree and relaxed retirement. This is only possible if you plan your finances to take care of your lifestyle. You need to have cash ready for medical expenses and other emergencies. A good plan includes retirement goals and income, spending, and investment details. This will help you decide what steps to take to reach your goals.

Real Estate Planning

Real estate planning refers to the arrangements made for your property and the proper distribution after your death. The size of the asset is not important, but the details of how to handle the asset and the liability are important.

Financial planning provides a high-level overview of what to do so that your treasurer can know the steps involved in managing your real estate.

Financial Status Ups and Downs

There are many changes in our lives. You can get married, lose your job, win the lottery, or make your loved one seriously ill. You make some money decisions that affect your standard of living. Such changes can have positive or negative changes in your financial position.

Benefits of Having Financial Planning

Financial planning helps you quantify your goals. You know how much you need and when you need it. This will help you determine the right asset allocation and choose the right investment for your risk tolerance and target time.

Financial planning helps develop a systematic and disciplined approach to achieving life goals. Therefore, it is important for everyone. A 24-year-old who has just started his career, or two 40-year-old fathers, and even a 60-year-old retired person.

Note here that there is no gender distinction in the financial plan. Therefore, it is just as important for women to plan their financial goals. Life expectancy is long, and unemployment such as sabbatical and retirement is long.

Women also need to plan their finances early in life. Even non-working women need a financial plan in the event of an inheritance to ensure that the inherited property is protected and used properly.

Wrapping it Up

Financial planning is important and essential for anyone who wants to achieve financial success and achieve financial goals. But keep in mind that financial planning is not a journey of days, but a journey of years that requires utmost patience and a lot of financial awareness.

Mergers and acquisitions (M&A) are common strategies used by companies to expand their operations, enter new markets, or acquire new technology. While these transactions can create significant value, they also have a profound effect on stock prices. 

1. Positive Effects on Stock Prices

In many cases, the stock price of the target company (the company being acquired) rises after the announcement of a merger or acquisition. This increase is due to several factors:

• Premium Offered: The acquiring company often offers a premium above the current stock price to gain control, which drives the target company's stock price higher.
• Investor Optimism: Mergers and acquisitions can lead to operational synergies, cost reductions, or market expansion, which investors view as beneficial for the target company.

Example: In 2018, Walmart acquired a 77% stake in Flipkart. While Flipkart was a private company, the acquisition generated significant interest in related companies like Info Edge (which had investments in Flipkart). The positive sentiment around the acquisition caused a temporary rise in Info Edge's stock.

2. Effect on the Acquiring Company’s Stock Price

The impact on the acquiring company’s stock price is often less straightforward and can vary:

• Initial Drop: In some cases, the stock price of the acquiring company might drop. This could happen due to concerns about overpayment for the target company, integration challenges, or the assumption of debt.
• Long-Term Growth: If the acquisition is successful and leads to increased revenues or cost efficiencies, the acquiring company’s stock price can rise in the long term.

Example: When HDFC Bank acquired Centurion Bank of Punjab in 2008, there was a short-term drop in HDFC’s stock due to concerns over the valuation. However, over time, HDFC benefited from the expanded customer base and market share, leading to a positive impact on its stock.

3. Synergy and Its Impact on Stocks

Mergers are often driven by the expectation of synergies – the idea that the combined company will be more valuable than the sum of the two individual companies. These synergies can result in cost savings, enhanced revenue, or greater market power, which, in turn, can boost stock prices.

Example: The merger of Idea Cellular and Vodafone India in 2018 aimed to create the largest telecom operator in India, with synergies in network infrastructure and customer base. While initial integration challenges caused a decline in stock prices for both companies, the long-term expectation was that the combined entity would become more competitive.

4. Regulatory and Market Reactions

The stock market closely monitors regulatory approvals in M&A deals. If a merger faces legal or regulatory hurdles, it may lead to uncertainty and a drop in stock prices. Conversely, regulatory clearance often leads to a rise in stock prices due to increased confidence in the deal.

Example: When Sun Pharma announced its acquisition of Ranbaxy in 2014, regulatory scrutiny by Indian authorities and international regulators caused fluctuations in stock prices for both companies. After the deal was cleared, Sun Pharma’s stock price showed stability.

5. Hostile Takeovers

In a hostile takeover, the acquiring company attempts to purchase a controlling stake in the target company without the approval of the target’s management. This can lead to volatility in the target company’s stock price, as speculation about the deal drives trading activity.

Example: In 2017, L&T initiated a hostile takeover of Mindtree. The stock prices of both companies fluctuated during the process, with Mindtree’s stock rising significantly due to the takeover premium.

6. Long-Term Impact on Stock Prices

While stock prices often react immediately to M&A announcements, the long-term impact depends on how well the companies integrate and achieve their strategic objectives. Factors like cultural alignment, successful integration of operations, and realization of synergies can influence the long-term stock performance of both the target and acquiring companies.

Example: The 2007 acquisition of Corus by Tata Steel initially led to excitement in the stock market, but the long-term impact was less favorable due to global economic downturns and integration challenges, causing Tata Steel’s stock price to decline in the following years.

Conclusion

Mergers and acquisitions have a significant impact on stock prices, both in the short and long term. While target companies generally experience a rise in stock prices, the acquiring company's stock can be affected by various factors such as deal structure, investor sentiment, and regulatory approvals.

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Introduction

Beginners who want to build wealth from the stock market hesitate to take the first step towards stock market trading because the fear of losing money stops them from entering into it.

Stock Trading as the name suggests is a trading method where people are involved in the transaction of shares of different companies in the stock market.

You may feel surprised to know that investing in the stock market with limited funds actually helps you double your wealth.

Trading stocks can seem challenging, especially if you have limited funds. However, with the right strategies and tools, even small investors can maximize their potential returns. One such tool is margin trading. Margin trading allows you to borrow money from your broker to buy more stocks than you could with just your available cash. This blog will guide you on how to trade stocks with limited funds using the margin trading facility, providing you with tips and tricks to get started.

A small investment with a regular amount will give you a wide experience of trading in the stock market. You only need to take care of a few things:

1) Set a Goal

An investment whether it is small or big has a specific reason to invest. Hence, many stock analysts advise you to set a goal before getting into the stock market as, without a clear objective, one can never achieve desired wealth.

Secondly, the goal of achieving outstanding returns, helps you decide the type, tenure and risk appetite. If you are a beginner, it is suggested to invest in the long run. This is because long term investment gives you ample opportunity to earn knowledge of the stock market. Also, setting a goal lowers the chances of investment errors.

Equity trading investment gives you a steady return if you invest in the stocks for the long term.

2) Control Your Emotions

Excessive emotions can harm your investment amount. Hence it is suggested to control your emotions while doing stock trading. Positive stock trading returns make people happy, however, negative returns like losses make people unhappy and that’s why many people stop investing.

3) Focus on the Fundamentals

Successful investments can be done only if investors have an in-depth understanding of the stock market. You can invest and earn a potential return from the stock market only if you focus on the fundamentals of the stock market and keep a track of every stock market movement. You can do this by doing proper stock market research. Having adequate knowledge of the stock market can mitigate your stock market risks.

4) Diversification

One of the best investment strategies to mitigate the risks is diversification. It allows investors to divide the investment amount into different investment categories along with their risks. Diversification of the money into different stocks will help you balance your portfolio as if one stock underperforms, the other performs well.

Best Way to Trade Without the Fear of Limited Funds

Margin Trading

Margin trading provides you with a way to purchase stocks that you can’t afford. Here, you need to borrow some amount of money from the stockbroker. In margin trading, the margin is being paid in both cash and in shares.

It is a prominent feature in stock trading as it allows investors to take larger portions and uplift their returns to another level. Here, the stockbroker plays a pivotal role as it funds your margin trading transactions.

In other words:

Margin trading involves borrowing money from your broker to purchase stocks. Here's how it works:

• Leverage: Margin trading provides leverage, meaning you can control a larger amount of stock than you could with your own money. For example, if you have ₹10,000 and your broker offers 2:1 leverage, you can buy ₹20,000 worth of stocks.
• Interest: You pay interest on the borrowed amount. This interest is charged by your broker.

Set a Clear Goal

Before you begin margin trading, set a clear financial goal. Ask yourself why you want to use margin trading. Are you looking to increase your returns over a short period, or are you investing for long-term growth? Having a goal helps you stay focused and make smart decisions.

Educate Yourself

Understanding the basics of margin trading is crucial. Learn about the following:

• Initial Margin: The amount of money you need to deposit to start margin trading.
• Maintenance Margin: The minimum account balance you must maintain. If your account balance falls below this, you'll get a margin call from your broker asking you to deposit more funds.
• Margin Call: A demand from your broker to deposit additional money or securities into your margin account when it falls below the maintenance margin.

Start Small

Begin with a small amount that you can afford to lose. Margin trading amplifies both gains and losses, so it's important to start cautiously. This way, you can learn and make mistakes without significant financial impact.

Choose the Right Broker

Select a brokerage firm that offers favorable margin trading terms. Look for brokers with:

• Low Interest Rates: Since you'll be paying interest on the borrowed amount, lower rates mean lower costs. Swastika Investmart offers competitive interest rates, making margin trading more affordable for you.
• Educational Resources: Brokers that provide tutorials, articles, and support can help you understand margin trading better. Swastika Investmart excels in this area, offering a wealth of educational and personalized support to ensure you make best trading decisions.

By choosing Swastika Investmart, you can benefit from low costs and exceptional resources, setting you on the path to successful margin trading.

Control Your Emotions

The stock market can be unpredictable, and prices can fluctuate significantly. Stay calm and avoid letting emotions drive your investment decisions. Stick to your strategy and remain focused on your long-term goals.

Monitor Your Investments

Regularly review your investment portfolio to ensure it aligns with your goals. Keep track of the performance of your stocks and make adjustments if necessary. However, avoid checking your portfolio too frequently, as short-term fluctuations can be misleading.

Be Aware of Risks

Margin trading comes with significant risks. Here are a few to keep in mind:

• Magnified Losses: While margin trading can amplify returns, it can also magnify losses. You can end up losing more money than your initial investment.
• Margin Calls: If your account balance falls below the maintenance margin, you'll need to deposit additional funds to avoid your broker selling your securities at a loss.
• Interest Costs: The interest on the borrowed amount can add up, especially if you hold the stocks for a long time. Ensure that the potential returns outweigh these costs.

Best Practices for Margin Trading

• Invest Wisely: Be cautious and ensure you have enough funds to cover potential losses.
• Borrow Less Than the Allowed Limit: Start with a smaller amount and increase your borrowing gradually as you become more comfortable with margin trading.
• Stay Informed: Keep up with market trends and news that may affect your investments.

The Process to Start Margin Trading.

The first and foremost step towards margin trading is to place a request to the stockbroker so that it can open a margin trading facility account. After opening the margin trading facility account, the stockbroker maintains a minimum balance which is called minimum margin.

Before getting started into a trade, investors are required to deposit a fixed per cent of the whole traded amount and the rest of the amount will be funded by the stockbroker.

Please note that the interest rate is charged by the stock broker.

The margin can be settled later when all the positions are squared off.

In margin trading, the profit can be counted only if you earn a profit that is higher than the margin, otherwise, you will suffer from a huge loss.

Takeaway

The amount of money cannot act as a limitation for investing in the stock market. A strong goal with the right decision can help you achieve great wealth. You are only required to Open Demat Account with a reputed brokerage firm like Swastika and you are ready to go. With Swastika’s Demat account, you can start an investment journey with a little money.

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A new variant of COVID 19 has been identified which was named Omicron by the World Health Organization (WHO). Many share trading analysts suggested that this new variant tends to spread quicker than the Delta variant and is much more infectious than other COVID variants.

Also, they said that the vaccines available now are less effective against this new variant. As we are trying to recover from the second wave, this omicron variant caused precariousness in the market.

If we talk about the current week, then we will get to know that the GDP for the July-Sept quarter of FY 2022 showed a total growth of 8.4%, which is the fourth consecutive quarter of positive growth post the major contraction.

If India wants to remain in the position of the fastest-growing economy in the year 2023, all restrictions are lifted and the growth continues to rise.

As said above, if the new strain emerges again, the government will take the necessary steps to bring back the restrictions.

Government’s 257 Billion Rupees Boost for EV - Your Chance for Potentially Wild Profits

Recently the government has announced that it will invest Rs 257 Billion into the electric vehicle initiatives by the year 2025.

The pandemic has acted as a catalyst of a positive change to shape the healthcare sector across the world.

Here are some of the potential stocks you need to pay attention to in India as the new variant of concern spreads.

Cipla

Its product portfolio contains generics and medications in key helpful fragments.

In India, Cipla is one of the biggest pharma organizations and the biggest Indian exporter to developing business sectors.

During the pandemic, Cipla carried out 7 products as a piece of their Covid-19 portfolio. These incorporate medications, sanitisers, and antigen and counter antibody testing kits.

During the sensitive days of the pandemic, it went into various associations to advertise items in oncology, biosimilars, and metabolic illnesses.

Cipla saw a solid 12% year on year (YoY) development in income in the monetary year 2021 predominantly due to respiratory opening in the US and their Covid portfolio.

During a similar period, Cipla's (EBITDA) margin grew by more than 350 basis points to 22.5% from 18.9%. Lower expenses because of cost enhancement drives and lower on-ground activities because of lockdown prompted extension in margins.

The organization's net overall revenue remained at a notable high of 12.6% in FY 2021 against 9% in the monetary year 2020. Operational efficiency and lower finance costs because of prepayment of debt have prompted higher net margins

During the year, the company launched 9 abbreviated new drug applications (ANDA), filed for 8 ANDAs out of which it has received approval for the 7 ANDAs.

Alkem Laboratories

Alkem Laboratories is a multinational pharmaceutical company that primarily manufactures and sells pharmaceutical generics, nutraceuticals, in India and globally.

As per the sources, Alkem is considered the fifth largest Indian pharmaceutical company in terms of market share. As of now, the company has manufactured 20 facilities and 6 R&D facilities in India and US.

The company has more than 800 brands out of which 12 brands have annual sales of more than Rs 1 billion.

During the pandemic, the company’s operations were little affected. However, it saw a full recovery during the whole phase.

In 2021, the company’s total revenue grew up to 6.2% in FY 2021, which was 13.4% in the previous year.

Furthermore, the company has also experienced a drop in sales, which might affect the company’s growth. However, the company managed to recover as the sales growth was primarily supported by their international business.

The EBITDA margin for FY 2021 is 21.9%, which has grown from 17.72% from the last year.

Thyrocare Technologies

Thyrocare Technologies is an Indian multinational chain of diagnostic and preventive care technologies that are known for offering more than 279 tests and 79 profiles of tests to detect several disorders.

The company has a centralized processing laboratory where it fulfills the requirement of the customers. The company also operates regional processing laboratories in metro cities to ensure speedy processing.

Thyrocare has a network across India as it supports a logistic network and IT infrastructure.

The company further declared a revenue growth of 14% in FY 2021 because of an increase in the diagnostic revenue due to COVID 19 testing.

Dr Lal Pathlabs

Dr Lal Pathlabs is an international service provider and one of the top diagnostic chains in India. The company is located in Delhi.

It offers more than 5000 diagnostic tests, related healthcare tests and services across 3,705 centres.

During the lockdown, the company extended its reach digitally and physically to improve its covid testing.

The revenue of Dr Lal path labs grew by 18% in FY 2021 against a 10.6% growth in the financial year 2020.

The EBITDA of the year 2021 was marked at 29.3% as compared to the last year which was 27.5% in the last financial year.

The Bottom Line

The healthcare industry remains resilient even in the pandemic. However, the companies have also gone through losses but due to the demand for healthcare and antibiotics, these companies have managed to perform better than others.

Other sectors such as FMCGs, and eCommerce companies could also do the same.

The pandemic has completely changed business ethics and the way of doing business.

If you want to invest in good companies, pay attention to those companies that can leverage the changes happening in the economy and push their long term growth terms.

It is suggested to not try to time the market. Instead, invest in the companies that give you better stock market trading returns in the long term.