MARKETS

Stocks

Epigral announces plans to expand its CPVC and Epichlorohydrin capacity by FY2027, aiming to boost its growth trajectory. The chemical manufacturer reported a 13 per cent increase in PAT and a 20 per cent revenue rise for Q4 FY2025. The company's ROCE reached 25 per cent in FY2025, enhancing its financial stability.

Epigral Q4 FY25: Net profit up 13% at Rs 87 crore; Rs 3.5 per share final dividend declared

INDUSTRY

Aviation

On Wednesday, the Directorate General of Civil Aviation (DGCA) issued an advisory asking airlines to increase flight capacity from Srinagar and waive cancellation and rescheduling charges for passengers impacted by the crisis

DGCA asks airlines to ramp up Srinagar flights, waive cancellation fees after Pahalgam terror attack

BT TV

News Reel

As millions gather for the spiritual experience of the Mahakumbh at Prayagraj, airfares are soaring to astronomical levels. Over 13.2 crore devotees have already taken the holy dip at the Triveni Sangam, with over 10 crore more expected to follow in the coming days. But the pilgrimage comes at a steep cost. With prices of round-trip flights from major cities like Chennai, Bengaluru, Hyderabad, and Mumbai surging to ₹50,000-₹54,500, a visit to the Kumbh can rival the cost of international vacations to Bali, Dubai, or the Maldives. In response to the price hike, the DGCA has urged airlines to increase capacity and rationalize fares, but airfares remain exorbitant. Will the cost of faith dampen the spiritual fervor of devotees? 


Prayagraj's Price Surge: Airfares Reach ₹50K, Making Kumbh Pilgrimage Costly

Drive Today

Omega Seiki is gearing up for a pre-IPO round in the next three months, with plans to launch an IPO later in the year. The capital raised will fuel the expansion of its truck division. "We are building a robust foundation for growth, with the pre-IPO process already underway," stated Narang. The company will initially produce the Mika range at its Faridabad facility, while a new truck production plant is being established in Chakan, Pune, set to be operational by the end of 2025. This expansion will increase Omega Seiki’s production capacity from 5,000 to 25,000 units annually by the end of 2025. 

Uday Narang On Omega Seiki's IPO Plans: ₹400-500 Crore To Be Raised

Rajesh Jejurikar, in conversation with BTTV's Chetan Bhutani, highlighted the need to increase capacity for the Thar Roxx due to overwhelming demand. He noted India's strong auto industry growth, driven by developing infrastructure, but emphasized that auto market penetration remains low. Jejurikar is optimistic about achieving mid to high teen growth by year-end. He also shared Mahindra's focus on launching lifestyle SUVs in unexpected markets, where EV adoption is exceeding expectations. Additionally, he pointed out the growing trend of premiumization, with features in Mahindra vehicles now rivaling those of high-end luxury cars, alleviating range anxiety with advanced battery technology. 

Aiming To End FY25 In Mid To High Teens Says Rajesh Jejurikar

Auto

“We have witnessed an overwhelming response to the Thar Roxx, and we will need to increase its capacity to meet the demand,” Jejurikar stated. He further elaborated on the promising outlook for the industry, anticipating double-digit growth and targeting mid to high teens in growth percentages by the end of the fiscal year for Mahindra.



AUTO

Mahindra to expand Thar Roxx production amid surging demand: Rajesh Jejurikar

লাইফস্টাইল

আপনি যদি আপনার বিবাহিত জীবন নিয়ে সন্তুষ্ট না হন। আপনি যদি মনে করেন যে আপনার শক্তি এত বেশি নয় যে আপনি দীর্ঘ সময় ধরে আনন্দ উপভোগ করতে পারবেন, তবে কিছু সহজ টিপস অনুসরণ করুন যা আপনার এনার্জি বৃদ্ধি করব

স্ত্রী প্রচুর ভালবাসবে, রইল বিবাহিত পুরুষদের স্ট্যামিনা বাড়ানোর সিক্রেট টিপস

Podcast

Health

Health Wealth

In this episode, integrative lifestyle medicine expert Luke Coutinho guides us towards simple, doable, impactful solutions to workplace stress. Using his six pillars for wellness, we discover how our diet, exercise, sleep, breath, emotional and spiritual choices can be adjusted to help increase our capacity to handle triggers

How can we manage stress from bossy bosses and deadlines? | Health Wealth, Ep 76

Information

Isolated rain across Tamil Nadu has brought much-needed relief to water reserves. With six dams now filled to 75% capacity, water levels in irrigation tanks are steadily rising, signaling a promising shift for the state’s resources.








information

Chennai Weather Update: Isolated rain in Tamil Nadu boosts water levels in dams

LATEST

Policy

These routes are vital for transporting essential commodities such as agricultural products, fertilisers, coal, steel, cement and containers. The capacity expansion will allow for an additional freight traffic of 51 million tonnes per annum (MTPA). 

Cabinet approves three mega railways projects with Rs 7,927 crore outlay, including Manmad-Jalgaon line 

Assam

The Asian Development Bank (ADB) has approved a USD 434.25 million (about Rs 3,600 crore) loan to increase renewable energy capacity and improve energy security in Assam.

Asian Development Bank commits USD 434.25 mn loan for solar facility in Assam

Sonu Vivek

Business

Ambuja Cement aims to increase its cement production capacity to 100 million tonnes per annum (MTPA) by FY25, with the acquisition adding about 30 MTPA to its total.

business

Ambuja Cement acquires Orient Cements for Rs 8,100 crore. Details here

Market Today

The initial public offering (IPO) of Hyundai Motor India (HMIL) is set to kick-off for bidding on Tuesday, October 17. The Rs 27,856 crore issue is the largest primary offering so far in the Indian stock markets. The offer price is in the range of Rs 1,865-1,960 per share, with a lot size of seven equity shares, until Thursday, October 17. It will be the first IPO by an Indian car market after the  2003 listing of Maruti Suzuki India. The South Korean parent Hyundai Motor Company took more than two decades to launch this issue, which is entirely an offer for sale of up to 14,21,94,700 equity shares. The company will command a market capitalization of about Rs 1.6 lakh crore. However, the domestic car maker is losing its steam in the grey market as the premium has been slumping gradually. Last heard, Hyundai Motor India was commanding a grey market premium (GMP) of merely Rs 65 per share, suggesting a miniscule listing pop of just 3 per cent to the investors, above the higher end of the price band. However, the premium stood above Rs 150 before the weekend, where some sources quoted a GMP of Rs 175 for the stock on Friday. However, the carnage began over the weekend, where it crashed in the two-digit figures. The GMP at the beginning of the month was around Rs 500 and was around Rs 350-375 when the issue was officially announced. OFS & valuations concerns A number of experts believe that the IPO of Hyundai Motor India is fully priced, but may deliver decent returns in the longer run considering its strong track record. Also, the entire OFS by the promoters of the company may dent its attraction as the entire sum will be flown out of South Korea with the Indian entity getting no proceeds from the issue. The rich valuations and entire OFS nature of the big issue is keeping the potential investors on the tenterhooks, who recently felt some jitters of volatility in the broader markets. Also, they are skeptical of liquidity being sucked out of the Indian markets, following the mammoth issue. It is a tendency of mega IPO to create buzz around liquidity. However, there is no shortage of liquidity in the Indian markets with a record number of SIPs and demat accounts pumping a strong amount in the equity markets. But it is the current jittery sentiments which is creating the buzz around liquidity, said Kranthi Bathini, Director of Equity Strategy at WealthMills Securities. "Complete OFS nature should not be a concern for the investors as promoters have been investing money for the past three decades and now it's their time to pluck the ripe fruit," he added. "Also, the company shall command a premium due to its strong track record, solid financial and pedigree of the promoters. IPO sentiments continue to remain positive for the market."
Brokerage views. A report from IIFL Securities said that the company's valuations are attractive, relative to other listed OEMs in India. "Hyundai has several facets of operational superiority compared to its peers, but believes that the MPV segment is a portfolio gap, which may be addressed soon. However, a potential weakness in the PV industry in FY25 is a major concern," said the brokerage firm. Hyundai Motors India has been actively launching innovative products and refreshes; its pipeline includes a Creta EV and three other EVs, said Nuvama Institutional Equities. Globally, Hyundai has a wide portfolio of EVs and hybrids, and there is scope for launching these models in India in the future. HMIL offers 13 models in India compared with 40-plus models globally, it said. Currently, imports account for 20 per cent of the company’s COGS (cost of goods sold), but it plans to reduce this through localisation efforts, in areas of powertrain parts, automatic transmission, ADAS parts, EV batteries & more. "HMIL has acquired General Motors’ Talegaon plant, which will increase its production capacity by 0.17 million in H2FY26E and 0.08 million by FY28E," Nuvama added. The domestic PV industry is an oligopolistic market with few players dominating the entire industry. Maruti Suzuki leads the PV industry in terms of domestic sales volumes. Motor (HMIL) is the second largest contributor to the domestic sales, with 14-15 per cent market share as one of the prominent export players from India, said Sharekhan. This is due to continued traction for popular SUV models. HMIL has planned for an offer for sale under which the promoter is offloading its 17.5 per cent stake in the company. HMIL has strong parentage, relevant product profile, robust market positioning and healthy financial profile. At the upper price band, its underlying P/E valuation of 26.3 times on its FY24 earnings, it said.

MARKET TODAY

What Are The Growth Plans Of Hyundai, India's 2nd Largest Car Maker?

In this video, InCred's Aditya Sood reveals the key factors behind selecting Indraprastha Medical from the hospital sector. He notes that the company is currently trading at a very attractive price and boasts one of the highest returns on capital employed, thanks to its lease agreement with the Delhi Government. With ₹300 crore in cash available for expansion, Indraprastha Medical plans to increase its bed capacity from 755 to over 2,000, which is expected to significantly boost their PAT. Aditya Sood explains that this represents a unique combination of a value stock being re-rated to a growth stock. Watch to learn more about this compelling investment opportunity!

InCred's Aditya Sood Reveals Key Factors Behind Selecting Indraprastha Medical From Hospital Sector

Astrology

Taurus daily horoscope for September 23, 2024: Today there are chances of not getting money as per requirement. If you want to make any very important work successful then keep trying to make financial arrangements.

astrology

Taurus daily horoscope for September 23, 2024: Likely to increase more profits. Avoid spending more money than your capacity

Education Today

News

The seat increase at GMCH is set to expand opportunities for aspiring medical students and enhance healthcare capacity in Goa.

education-today

news

Goa Medical College increases MBBS seats to 200 for 2024-25

Union Electronics and IT Minister Ashwini Vaishnaw announced that consumer electronics majors HP Inc and Padget Electronics have signed an MoU to manufacture HP laptops, personal computers, and all-in-one PCs at a factory in Tamil Nadu. Vaishnaw, this is a major success for the production-linked incentive (PLI) scheme under Prime Minister Narendra Modi’s ‘Make in India’ programme. The production of HP devices as part of the pact with Padget Electronics, a subsidiary of homegrown Dixon Technologies, is set to commence in February of next year at the production facility at Oragadam, an industrial suburb of Chennai. Spanning across 300,000 square feet, the plant is projected to create 1,500 direct jobs. At peak capacity, it will be capable of producing 2 million units annually. The company will gradually increase local manufacturing of components, modules and peripherals, creating more jobs, the minister added.

Dixon India Subsidiary Padget To Manufacture Computers For HP India In Tamil Nadu

Environment

SCIENCE

This dramatic increase in water levels has put many dams on high alert, with 17 reservoirs holding between 50-70% of their capacity.

environment

Gujarat's dams overflowing: 55% at full capacity after monsoon deluge

शॉर्ट वीडियो

विश्व

अमेरिका को चीन का खौफ इसलिए है क्योंकि ड्रैगन के पास 500 परमाणु हथियार हैं. ये पिछले साल 410 थे. चीन अपने न्यूक्लियर वेपन को बहुत तेजी से बढ़ा रहा है.जबकि और किसी भी देश ने ऐसा नहीं किया है. 

short-videos

न्यूक्लियर पावर क्यों बढ़ा रहा चीन?

चीन

অনেক অভিভাবক তাঁদের সন্তানদের পড়াশোনায় আগ্রহী না হওয়ায় উদ্বিগ্ন থাকেন। তাঁরা শিশুদের পড়াশোনা করানোর জন্য বিভিন্ন উপায় নেন।

বলার আগেই পড়তে বসবে ছেলে-মেয়ে, মা-বাবাদের জন্য মোক্ষম টিপস

UNION BUDGET 2024

Finance Minister Nirmala Sitharaman emphasized that the exemption increase in LTCG to Rs 1.25 lakh was aimed at providing relief to the middle class with small investing capacity. On the customs side, she noted several steps to boost domestic production and enhance export competitiveness. Custom duty reductions aim to lower raw material costs, with rate cuts on inputs for leather and textiles to boost employment and reduce costs. She also addressed custom duty cuts in marine products, clarifying that until domestic manufacturing in this sector reaches a certain level, the government will maintain these cuts to prevent suffering. 

FM Nirmala Sitharaman Says Govt Had Courage To Bring Indexation Back Into LTCG Tax Calculation

Union Budget

During the #BudgetRoundTable2024 conference, Sourav Majumdar, Editor of Business Today, engaged in an exclusive conversation with Abheek Barua, Chief Economist at HDFC Bank, to discuss the Budget 2024-25 announcements and their impact on the middle class. Barua emphasized the significance of the middle class, describing it as a "very thick middle." He noted that even modest augmentations of 400-500 rupees to the lower middle class could significantly boost their purchasing capacity. This increase in disposable income is likely to benefit the FMCG mass market, as companies catering to these consumers would see a positive impact. Barua also highlighted that the middle class is particularly affected by inflation, and these augmentations, although modest, would make a meaningful difference in their financial situation.


#BudgetRoundTable2024: HDFC Bank's Abheek Barua On Budget 2024’s Middle Class Impact

हेल्थ

कुछ लोग चीजों को रखकर बड़ी जल्दी भूल जाते हैं.दिमाग पर बहुत जोर डालने पर भी चीजें याद नहीं रह पाती हैं. ऐसे में कुछ चीजें हैं जिनसे आप अपना दिमाग तेज कर सकते हैं. कोशिश करें कि अच्छा खाना खाएं.

ऐसे बनाएं दिमाग को तेज

Science

Ariane-6 aims to reduce launch costs by 40% compared to Ariane-5 and increase annual launch capacity from 7 to 11 missions.

Europe's brand new Ariane-6 rocket to launch on Tuesday: All you need to know

As the Union Budget 2024 approaches, the power and renewable energy sectors are expected to receive a significant boost, with reports indicating a double-digit allocation and multiple beneficial schemes. According to a recent CRISIL study, capital expenditure for renewable power may see a double-digit increase, with capacity projected to reach 180 GW by FY26. Sakshi Batra speaks to market expert Vinit Bolinjkar, Head of Research at Ventura Securities, about what the budget could deliver for renewable energy and which stocks to watch before the announcement. 


Which Are The Best Renewable Energy Stocks To Invest In Ahead Of Budget 2024?

India plans to expand its nuclear power generation capacity by approximately 70% over the next five years, as announced by Jitendra Singh, Minister of State for Science and Technology.

‘In next 5 years’: India plans 70% increase in nuclear power capacity

The country's installed capacity is projected to rise from the current 7.48 GWe to 13.08 GWe by 2029, representing an addition of seven new reactors.

science

India’s nuclear power capacity to increase by 70% in five years

আজকাল অনেকেই অল্প পরিশ্রমেই হাঁপিয়ে যান। একটু সিঁড়ি ভাঙলে কিংবা বাজারের ব্যাগ টানতেই নাজেহাল দশা হয়। এসব উপসর্গ কিন্তু ফুসফুসের সমস্যার লক্ষণ হতে পারে। তাই হতে হবে সচেতন।

অল্পেই হাঁপিয়ে উঠছেন? এগুলো খেলেই দম বাড়বে!

India

Personal Finance

Personal income tax collections exceed corporate tax mop up in recent years but experts caution not comparable.

/india

Budget 2024: Individual taxpayers hope for tax relief in the Union Budget from Nirmala Sitharaman

Delhi's Health Minister directed hospitals to increase their capacity to accommodate patients with heat-related conditions and announced plans to issue a new advisory through radio and newspaper channels to raise public awareness

Delhi govt ramps up hospital bed capacity in response to severe heatwave

Energy

The report finds gas-based power expensive in the short term. While energy storage options are expected to become commercially viable in medium term, round-the-clock renewable energy capacity is projected to increase


Heat wave triggers peak power demand, prompts long-term shift to renewables in India: IEEFA

Corporate

InterGlobe Aviation Ltd, which operates the budget airline IndiGo, on May 23 reported a 106 percent year-on-year (YoY) jump in net profit at Rs 1,894.80 crore for the March quarter compared with Rs 919.20 rcore in the same quarter last year. 

Business class comfort in budget carrier IndiGo coming soon from this year 

Shree Cement, India’s third-largest cement group by capacity, unveiled its financial outcomes for the quarter and fiscal year ending March 31, 2024. The company saw a substantial 49% increase in EBIDTA and a 21% rise in PAT year-over-year. Q4 witnessed a 7% YoY surge in net revenue, reaching ₹5,101 crore, while annual turnover soared by 16% to ₹19,586 crore. Total sales volume in Q4’FY24 rose by 8%, hitting 9.53 million tonnes, contributing to an annual volume of 35.5 million tonnes with a 12% growth. EBIDTA (excluding Other Income) surged by 49% YoY, reaching ₹1,327 crore in Q4. HM Bangur, Chairman of Shree Cement, speaks on the Q4 results in an exclusive interview with Business Today TV's Sakshi Batra.


HM Bangur, Chairman, Shree Cement On Q4 Earnings, Record EBITDA & FY25 Growth Plans

भारत

इन दिनों रेलवे स्टेशनों पर भारी भीड़ देखने को मिल रही है। भागदौड़ का कारण चुनावों के बीच विवाह का मौसम भी माना जा रहा है। जिसके कारण देश में ट्रेन सेवाओं की सीमित क्षमता के कारण सप्लाई और डिमांड में गैप पैदा हो गया है। रेल मंत्रालय ने मौसम में बढ़ी हुई मांग के कारण इस सर्दियों को अधिकतम 10,000 ट्रेन सेवाएं चलाने की योजना बनाई है। 

Special Trains: रेलवे में सफर करने वालो के लिए बड़ा तोहफा , शादी के सीजन और चुनावों के बीच रेल मंत्रालय चलाएगी 60% अधिक ट्रेनें

पॉडकास्ट

सेहत

हेलो डॉक्टर

पेरेंट्स बनना जिन कपल्स की चॉइस होती है अक्सर उन्हें कंसीव करने से जुड़ी चुनौतियों का भी सामना करना पड़ता है. हमारे पॉडकास्ट में हमनें फ़ीमेल इंफर्टिलिटी पर तो बात की ही, आज बात होगी मेल इंफर्टिलिटी. स्पर्म काउंट से लेकर फर्टिलिटी को बढ़ाने वाले फ़ैक्टर्स क्या हो सकते हैं? कौनसी स्टेज पर पहुंच हमें कंसर्न होना चाहिए, सुनिए 'हेलो डॉक्टर' में चेतना काला और बिरला फर्टिलिटी हॉस्पिटल, गुरुग्राम में डॉक्टर प्राची बेनारा के साथ 

साउन्ड मिक्सिंग: कपिल देव सिंह 

health-fitness

Hello Doctor

चाइल्ड कंसीव न होने पर पुरुषों को तुरंत करवाने चाहिए ये चेकअप: हेलो डॉक्टर, Ep 208

Battery energy projects are crucial to India’s plan to expand its renewable energy capacity that it aims to increase to 500 GW by 2030.

Reliance, JSW, Amara Raja submit bids to set up battery manufacturing gigafactory: Report

Magazine

Deep Dive

After surviving a financial crisis and with most court cases nearing closure, Fortis Healthcare, under new management, is embarking on an ambitious journey to solidify its position in the industry

Behind Fortis Healthcare's ambitious new journey to solidify its position in India's healthcare industry

Company Stock

The Anil Agarwal-led Vedanta is well-placed to benefit from commodity upcycle given its diversified exposure, CLSA said. Efforts to increase capacity and profitability across segments auger well, it said.



Vedanta share price target at Rs 390: CLSA ups rating on stock to 'Buy', says this

Latest Auto News

Maruti is aiming to increase its production capacity to 4 million vehicles per year over the next 7–8 years.

auto

latest-auto-news

This plant can now produce 9 lakh Maruti cars every year, capacity enhanced by 1 lakh units

Under K.C. Jhanwar, UltraTech Cement is making all the right moves to increase capacity, moving into newer markets with a sharp focus on sustainability

Under K.C. Jhanwar, UltraTech Cement is growing from strength to strength

Cities

Delhi

The Delhi government aims to increase the solar capacity by three times from the current capacity of 1,500 Mega Watt (MW) to 4,500 Mega Watt (MW) by 2027.


cities

delhi-news

Rooftop solar panels to be installed on 645 government buildings in Delhi

शेयर बाज़ार

तकनीकी के संदर्भ में, सैल्ज़र इलेक्ट्रॉनिक्स स्टॉक का रिलेटिव स्ट्रेंथ इंडेक्स (आरएसआई) 77.8 पर है, जो दर्शाता है कि स्टॉक ओवरबॉट ज़ोन में कारोबार कर रहा है। सैल्ज़र इलेक्ट्रॉनिक्स के शेयर 5 दिन, 20 दिन, 50 दिन, 100 दिन, 150 दिन और 200 दिन के मूविंग औसत से अधिक पर कारोबार कर रहे हैं।

share-market

Dolly Khanna के इस स्टॉक में लगातार दूसरे दिन आई तेजी

বলার আগেই পড়তে বসবে ছেলে-মেয়ে, মা-বাবাদের শুধু এটা করতে হবে

Nagaland

Nagaland is currently experiencing a severe power shortage with hydro generating stations operating below capacity and thermal power stations undergoing maintenance. The situation is worsened by a 300% increase in peak demand for power since the 1990s, with only 100MW available during peak hours against a demand of 180MW.

Nagaland faces severe power shortage crisis due to rising demand and limited supply

Prime Minister Modi delivers a comprehensive address highlighting India's robust economic performance and strategic energy initiatives at India Energy Week 2024 in Goa. He announces a GDP growth rate of 7.5% in the first six months of FY24, surpassing global averages and positioning India as a top contender among the world's largest economies. With a focus on the energy sector, PM Modi emphasizes the escalating demand for electric vehicles and the doubling of India's primary energy demand by 2045. He underscores India's proactive measures to meet this demand, ensuring affordable energy accessibility across the nation. Despite challenges, PM Modi notes a remarkable reduction in petrol and diesel prices, even amidst escalating crude oil rates."India’s oil demand is expected to increase to 38 million barrels per day by 2045 from current 19 million barrels.India is consistently growing its energy capacity. We aim to increase the share of natural gas to 15% of primary energy missfrom 6 % now. By 2030 the refining capacity will be at 450 mtpa in India," PM Modi says.


India’s Oil Demand To Double By 2045 From Current 19 Million Barrels, Says PM Modi

Maruti Suzuki is set to invest ₹35,000 crores in establishing its second manufacturing facility in Gujarat. Speaking at the 10th Vibrant Gujarat Global Summit in Gandhinagar, Suzuki Motor Corporation President Toshihiro Suzuki expressed the company's ambition to increase annual production capacity to over 40 lakh units.The new plant,  with an installed production capacity of 10 lakh units per annum, is anticipated to commence operations in the financial year 2028-29. R.C. Bhargava, Chairman of Maruti Suzuki, provides insights into Maruti's Mega Investment Plan for 2024 and sheds light on the reasons behind choosing Gujarat for the new plant.


Why Did Maruti Choose Gujarat For The New Plant?

Even as China scrambles to raise its steel exports after a dip during Covid-19, Tata Steel has announced it is investing ₹10,000 crore every year to increase its capacity by 1-2 million tonnes every year to maintain its market share. According to Tata Steel MD & CEO, TV Narendran, “China has been exporting 8 mn tonnes of steel every month which is the highest since 2015, and this has had an impact on international steel prices as well as profitability”. The top official also spoke about the need to increase competitiveness in preparation for the auction of mines in 2030 after which the company will have to buy raw materials at market prices.


Tata Steel MD & CEO TV Narendran Talks About Massive Investments To Counter China Threat

TECHNOLOGY

The company is joining foreign brands including Tesla, BMW and Ford that are expanding their exports of China-made cars to exploit the country's lower manufacturing costs and increase the capacity utilisation of their factories

Nissan to export China-developed EVs to global markets

SpiceJet's lack of transparency in sharing its key operational data remains a major concern, said Nuvama said. It expects SpiceJet’s yields to cool down in H2FY24, led by an increase in capacity on resumption of certain grounded aircraft.



SpiceJet shares at Rs 52? What Nuvama says on capital infusion and one major concern 

Kotak Institutional Equities in a strategy note has said its reverse-valuation exercise on Suzlon Energy Ltd shows the flaws in the market’s approach to valuation of companies. The domestic brokerage said its math shows that the increase in market capitalisation of Suzlon Energy is far ahead of the likely value creation from incremental capacity addition of the next several years, "let alone the next few years of potential opportunity for the companies in the best-case scenario." Kotak said stock prices of electricity generation equipment suppliers such as Suzlon Energy and BHEL have increased sharply over the past few months on anticipation of a large step-up in generation capacity. "We agree with the premise of requirement of additional electricity generation capacity given electrification of the Indian economy and steady growth in electricity demand." Shares of Suzlon Energy are up 270 per cent in 2023 so far. The stock is up 738 per cent in the last five years. The brokerage however feels that India is unlikely to add large amounts of coal-based thermal generation capacity or wind-based renewable capacity, given the superior economics of solar-based electricity versus wind-based electricity, Kotak said. To justify its m-cap, Kotak said Suzlon Energy would need to deliver wind turbine generator (WTG) corresponding to 8-12 GW of new wind generation capacity every year in perpetuity. This, it said, is unlikely as India has added only 8.6 GW of new wind generation capacity over FY2018-23 and Suzlon Energy has added mere 2.1 GW of total wind generation capacity over the same period. "The market’s propensity to give multiples (and high multiples, to boot) to ‘limited opportunity’ earnings of companies in certain sectors as quite odd. The electrification theme in vogue currently is a good example of this laxity, while the pharmaceuticals has had this problem historically but less so currently. Lastly, the tendency to use multiples for non-recurring earnings is most prevalent in periods of extreme bullishness in the market," it said. Suzlon Energy, Suzlon Energy share, Suzlon Energy share price, Suzlon Energy stock price, Suzlon Energy news, Suzlon Energy stock, stock in news, stock in focus
