In the weak gone by, global markets grappled with the impact of the US rating downgrade, with spiking bond yield and strengthening dollar index. US Markets assessed the latest corporate earnings results and struggled to shake off pressure from rising bond yields. Besides, investors also assessed the latest economic data, including in-line weekly jobless claims and second-quarter productivity data that showed an uptick. European stock markets got a minor boost on the back of more talk from the Chinese government of additional stimulus measures to boost the second-largest economy in the world, and a major export market for many of Europe’s largest companies. In other news, the Bank of England on Thursday hiked interest rates by 25 basis points, in the latest move by a global central bank to tame inflation. Additionally, German factory orders climbed a chunky 7% on the month in June, a much better result than the drop of 2.0% expected, helped by sharp gains in the aerospace sector.
Back at home, domestic market continued to witness volatile session, having remained under pressure for the past few sessions on the back of selling by foreign institutional players and weak global cues, including the U.S. sovereign rating cut and weak China data. On the flip side, the positive factor is that the DIIs are buying aggressively more than compensating for FPI selling. India's services sector growth touched a 13-year high in July as a substantial improvement in demand conditions and pick-up in international sales induced the strongest increase in new business and output. On the back of slew of domestic quarterly earnings releases, it is expected that market may continue to see stock specific movement. Going forward, market will continue to take direction from domestic and global factors.
On the commodity market front, after a month upside move, CBR witnessed a pause in the rally. The dollar shot up shrugging off the Fitch downgrade as data showed some resilience in the U.S. economy. Strength in the dollar pressured most commodities priced in the greenback, as resilience in the U.S. economy pushed up bets that the Federal Reserve will have enough headroom to keep raising interest rates. The Dollar Index is expected to maintain its upward trajectory, possibly reaching 103.5 in the near term; it adds further pressure on commodities prices including bullion. Gold and silver prices are expected to trade within specific ranges, with gold between 58200 - 60200 levels and silver between 71400 – 75000 levels. Crude oil prices are making a higher highs and higher lows pattern, indicating a potential move towards 6850-6900 levels. Base metals may see buying opportunities during a dip in prices. Traders should closely monitor inflation data from China, Mexico, the United States, and Germany, as well as New Yuan Loans from China, GDP of the UK, PPI (Producer Price Index), and Michigan Consumer Sentiments Preliminary data. These releases may significantly impact commodity trading.
SMC Global Securities Ltd. (hereinafter referred to as “SMC”) is a registered Member of National Stock Exchange of India Limited, Bombay Stock Exchange Limited and its associate is member of MCX stock Exchange Limited. It is also registered as a Depository Participant with CDSL and NSDL. Its associates merchant banker and Portfolio Manager are registered with SEBI and NBFC registered with RBI. It also has registration with AMFI as a Mutual Fund Distributor.
SMC is a SEBIregistered Research Analyst having registration number INH100001849. SMC or its associates has not been debarred/ suspended by SEBI or any other regulatory authority for accessing /dealing in securities market.
SMC or its associates including its relatives/analyst do not hold any financial interest/beneficial ownership of more than 1% in the company covered by Analyst. SMC or its associates and relatives does not have any material conflict of interest. SMC or its associates/analyst has not received any compensation from the company covered by Analyst during the past twelve months. The subject company has not been a client of SMC during the past twelve months. SMC or its associates has not received any compensation or other benefits from the company covered by analyst or third party in connection with the research report. The Analyst has not served as an officer, director or employee of company covered by Analyst and SMC has not been engaged in market making activity of the company covered by Analyst.
The views expressed are based solely on information available publicly available/internal data/ other reliable sources believed to be true.
SMC does not represent/ provide any warranty express or implied to the accuracy, contents or views expressed herein and investors are advised to independently evaluate the market conditions/risks involved before making any investment decision.
DISCLAIMER: This report is for informational purpose only and contains information, opinion, material obtained from reliable sources and every effort has been made to avoid errors and omissions and is not to be construed as an advice or an offer to act on views expressed therein or an offer to buy and/or sell any securities or related financial instruments, SMC, its employees and its group companies shall not be responsible and/or liable to anyone for any direct or consequential use of the contents thereof. Reproduction of the contents of this report in any form or by any means without prior written permission of the SMC is prohibited. Please note that we and our affiliates, officers, directors and employees, including person involved in the preparation or issuance of this material may; (a) from time to time, have long or short positions in, and buy or sell the securities thereof, of company (ies) mentioned herein or (b) may trade in this securities in ways different from those discussed in this report or (c) be engaged in any other transaction involving such securities and earn brokerage or other compensation or act as a market maker in the financial instrument of the company (ies) discussed herein or may perform or seek to perform investment banking services for such Company (ies) or act as advisor or lender / borrower to such company (ies) or have other potential conflict of interest with respect of any recommendation and related information and opinions, All disputes shall be subject to the exclusive jurisdiction or Delhi High Court.
SAFE HARBOR STATEMENT: Some forward statements on projections, estimates, expectations, outlook etc are included in this update to help investors / analysts get a better comprehension of the Company's prospects and make informed investment decisions. Actual results may, however, differ materially form those stated on account of factors such as changes in government regulations, tax regimes, economic developments within India and the countries within which the Company conducts its business, exchange rate and interest rate movements, Impact of competing products and their pricing, product demand and supply constraints. Investors are advised to consult their certified financial advisors before making any investments to meet their financial goals.
The bank has been consistently delivering on improving asset quality, cost efficiency, other income and productivity in the past few quarters. The Management is confident of improvement in incremental disbursement with better credit monitoring. According to the management, loan mix would be 55% corporate & 45% retail going forward, looking at 14-15% loan growth for next year. Thus, it is expected that the stock will see a price target of Rs.384 in 8 to 10 months’ time frame on a current P/BV of 0.90x and FY24 BVPS of Rs.426.95.
The company continued to expand its product portfolio with the launch of state-of-the-art products in the Piping division, aligned to the Company’s growth strategy of bringing innovative and global products to the domestic market. It is also implementing new, improved technologies to be future-ready, and all these efforts are key growth-oriented strategic measures towards better performance in FY 23-24. Thus, it is expected that the stock will see a price target of Rs. 773 in 8 to 10 months’ time frame on three year average P/BVx of 5.51x and FY24 BVPS of Rs.140.37E.
The stock closed at Rs.576.20 on 04thAugust, 2023. It made a 52-week low of Rs.462.70 on 20th April, 2023 and a 52-week high of Rs.581.85 on 04th August, 2023. The 200 days Exponential Moving Average (DEMA) of the stock on the daily chart is currently at Rs.519
The Stock has been consolidating in broader range of 470-550 from last fifteen months with prices holding well above its 200 days exponential moving average on weekly charts. Last week, the stock marked its 52 week high of 581.85 after a momentum seen coming into the prices above the key resistance level of 550. Technically the stock has given a fresh breakout on broader charts after a series of prolong consolidation phase. On the short term, charts breakout above Bullish Flag pattern has also been observed on weekly charts. Therefore, one can buy the stock in the range of 570-575 levels for the upside target of 635- 640 levels with SL below 535 levels.
The stock closed at Rs.412.70 on 04th August, 2023. It made a 52-week low at Rs.307.30 on 31st October, 2022 and a 52-week high of Rs.430.90 on 25th April, 2023. The 200 days Exponential Moving Average (DEMA) of the stock on the daily chart is currently at Rs.387.
Stock can be seen rising steadily with formation of higher bottom pattern on weekly charts as gradual recovery has been seen in prices from lower levels. At current juncture, stock has given a fresh breakout above the symmetrical triangle pattern along with marginal rise in volumes which suggests a long build up into the prices. The positive divergences on secondary oscillators suggests an upside momentum into the stock in upcoming weeks. Therefore, one can buy the stock in range of 410-413 levels for the upside target of 470-475 levels with SL below 375 levels.
Disclaimer : The analyst and its affiliates companies make no representation or warranty in relation to the accuracy, completeness or reliability of the information contained in its research. The analysis contained in the analyst research is based on numerous assumptions. Different assumptions could result in materially different results.
The analyst not any of its affiliated companies not any of their, members, directors, employees or agents accepts any liability for any loss or damage arising out of the use of all or any part of the analysis research.
Charts by Reliable software
During the past week, the Nifty index closed in red with a loss of slightly over half a percent, while the Bank Nifty saw a decline of over one percent. Notably, the IT and pharma sectors experienced significant gains, whereas the financial services, FMCG, and Oil & gas sectors witnessed a notable decline. Analysing the derivative data, it was evident that the Nifty call options had the highest open interest at the 19,600 level, closely followed by the 20,000 level. As for put options, the highest open interest concentration was observed at the 19,400 level, followed by the 19,500 strike. Considering open interest, the current expected trading range for the Bank Nifty lies between 45,000 and 44,500. The implied volatility (IV) for Nifty call options concluded at 9.79%, while put options closed at 11.01%. Additionally, the Nifty VIX, which measures market volatility, ended the week at 11.19%. The Put-Call Ratio Open Interest (PCR OI) settled at 1.16 for the week. Traders are advised to exercise caution and use strict stop losses, as the current volatility is quite low. Moreover, specific stocks are expected to exhibit movement within the Nifty, while the Nifty trading range for the upcoming week is anticipated to be between 19400 – 19800 levels. A decisive breakout on either side could provide further direction to the market indices.
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**The highest call open interest acts as resistance and highest put open interest acts as support.
# Price rise with rise in open interest suggests long buildup | Price fall with rise in open interest suggests short buildup
# Price fall with fall in open interest suggests long unwinding | Price rise with fall in open interest suggests short covering
Turmeric prices kept its gains intact last week on aggressive buying for good quality produce in the market and crossed of 18000 INR/Qntl level at NCDEX. Arrivals increased in recent weeks due to ever higher realization on turmeric but prices stood firm with intermittent correction due to limited availability of quality produce in the market. Quality of the turmeric crop was affected badly due to heavy rainfall at time of harvesting in Apr-May in Maharashtra. Overall arrivals of turmeric has been higher on yearly basis during time period of Apr’23- July’23 as about 200 thousand tonnes of turmeric arrived during above mentioned period in year 2023 against the 180 thousand tonnes of previous year. Ongoing sowing and crop progress is major price driver for turmeric in coming days. Forecast of drier weather in southern and central region has added worries to turmeric crops and supporting firmness in prices. Sowing activities almost completed in Maharashtra and likely to pick up in Andhra Pradesh. Stockists and Spice millers are very active and going for aggressive buying in wake of bleak supply outlook ahead. Area under turmeric is estimated to be down by 15-20% in year 2023 due to monsoon concerns at the time of sowing. Apart from that, robust export demand is also supporting bullish momentum of the market. India exported about 39.42 thousand tonnes of turmeric during the time period of Apr- May’23 as compared to 30.9 thousand tonnes of previous year, higher by 28% Y-o- Y. Technically, prices are moving in overbought zone of RSI reading and likely to witness profit booking any time. Turmeric Oct contract is likely to trade in range of 16500-18300 levels.
Jeera futures resumed its uptrend following renewed buying in local market. Prevailing concerns over supply shortage and active export enquires supported firmness in jeera prices. Export jumped for 2 consecutive months of Apr-May reported at 47 thousand tonnes as compared to 23 thousand tonnes of previous year but now export is likely to be down in coming months as supply of Syrian jeera has improved at cheaper rate. Moreover, arrivals are expected to increase in wake of forecast of drier weather in Rajasthan and Gujarat in Aug. jeera Sep prices are likely to trade in range of 58000-68200.
Dhaniya NCDEX Sep prices are likely to trade higher mainly due to slower arrival pace in the market. Stockists are farmers are busy in hoarding in wake of drier global supply pipe line. Supply from black sea is expected to decline as Russia exited from grain deal with Ukraine that will affect the arrival pace adversely. Export enquire of Indian coriander has increased that will help prices to trade on positive bias. India exported about 35.4 thousand tonnes during time period of Apr-May’23 against the 6.23 thousand tonnes of previous year. Dhaniya NCDEX Sep futures are likely to trade in range of 7300-8400 levels.
Gold prices had their worst week in six as investors braced for a closely watched U.S. jobs report, triggered by a series of robust economic data that pushed Treasury yields to nine-month highs. The precious metal's value declined by over 1% during the week, reaching its lowest level since July 11. U.S. long-term Treasury yields surged to their highest levels since November, partly due to positive employment and economic indicators, signalling easing inflation. Gold's appeal waned as rising bond yields diminished its attractiveness, considering gold does not offer interest payments. The metal faced resistance in breaking through the $2000 mark on COMEX and 60500 on MCX, mainly due to developments in the US dollar index and bond yields. The Federal Reserve's decision to raise interest rates, combined with a stronger Dollar Index and escalating US bond yields, fostered uncertainty in the precious metal markets. Despite disappointing economic releases from the US and China, gold prices declined and failed to attract safe-haven buying. Expectations of further interest rate hikes by the Federal Reserve, driven by the US economy's resilience, could continue to impact gold's performance negatively. Additionally, predictions of the Dollar Index continuing its upward trajectory, possibly reaching 103.5 in the near term, and bond yields rising, potentially reaching 4.33, added further pressure on gold prices. On the technical front, charts structure looks bearish and 59000 is providing strong support, if prices break and sustain below the levels then the selling pressure will be seen. The possible trading range of gold will be 58200-60200 levels. On the other hand, Silver prices may continue to witness selling pressure and the possible trading range would be 68500-73000 levels.
Crude oil marked its sixth consecutive week of gains following commitments from Saudi Arabia and Russia, the world's second and third-largest oil producers, to reduce output through the coming month. This streak of weekly gains is the longest seen this year for both Brent and WTI benchmarks. Over the last six weeks, Brent crude has surged by 15.4%, while WTI rose by 18.2%. Saudi Arabia decided to extend its voluntary oil production cut of 1 million barrels per day (bpd) until the end of September, while Russia also pledged to reduce its oil exports by 300,000 bpd in September, according to Deputy Prime Minister Alexander Novak. Ahead of the OPEC+ meeting, the Joint Ministerial Monitoring Committee of OPEC+ is not expected to make significant changes to overall oil output cuts. Nonetheless, the extensions of Saudi Arabia’s reductions and Russia’s commitment have raised concerns over supply, providing support to oil prices. Investors are closely monitoring the situation as supply constraints may continue to buoy crude oil prices in the coming weeks. However, the latest batch of U.S. data showing tight labor markets and a slowing service sector has triggered some worries that an economic slowdown would curb demand for oil and pressure prices lower, even with the supply cuts. Ahead in the week crude oil may continue to witness buying pressure but the rally is over stretched, any correction near support considered as buying opportunity. Possible trading range would be 6420-7250 levels. Natural gas prices rebounded from their lows but remained bearish throughout the week due to forecasts indicating lower demand. Ahead in the week prices likely to trade in the range of 200-230 levels.
Base metals may trade sideways with bearish bias on worries over lacklustre demand in China after more weak data. The recent PMI data from Asia showed weakness in China, Japan and South Korea. Construction data out of China is still very poor. However, top consumer China is expected to roll out further support to boost economic growth, especially the property sector, a major consumer for industrial metal. Fitch Ratings said it expects robust growth in China's infrastructure investment in the second half of 2023. Copper may trade in the range of 720-760. Global copper smelting activity bounced slightly in July despite a sharp fall in top refined producer China, according to data. Chile's total copper production rose 0.02% in June to reach 454,800 metric tons, the country's copper commission Cochilco said. China's imports of refined copper fell to a four-year low in the first six months of 2023, underlining the sense of stalled momentum in the world's manufacturing powerhouse. Zinc can trade in range of 215-235. Lead can move in the range of 180-189. Aluminum may trade in the range of 193-208. The premium for aluminium shipments to Japanese buyers for July to September was set at $127.5 per metric ton, near the previous quarter's levels, as local demand remained sluggish with ample stocks. Steel long (Aug) is likely to trade in the range of 43500-45500 with firm bias as global steel production fell slightly from May to June, down -1.8% for the month to 158.8 million metric tons. The global market for steel scrap is projected to reach 918.3 million metric Tons by 2030, with a CAGR of 4.9% from 2022.
Cotton prices are likely to trade mixed to down due to improved crop progress central and northern region. Weather condition has turned favorable to cotton that will weigh on market sentiments. Cotton area across India reached up to 116.75 Lakh Ha as on 28th July in year 2023 Vs 117.9 lakh Ha. However, improved demand of cotton yarn and limited availability of cotton stocks are likely to cap the losses. Cotton MCX Aug prices are likely to trade in range of 56000-60000. Similarly, Kapas Apr’24 futures are likely to trade in range of 1520-1585.
Cotton seed oil cake NCDEX Sep futures are likely to trade higher as per its price seasonality due to shrinking supplies in the market. Gains in relative oil meal prices and reports of fall in area under cotton are likely to support market sentiments for cocud. Cotton seed oil cake Sep prices are likely to trade in range of 2200-2370.
Guar seed Sep futures is likely to trade on mixed to higher on prevailing weather uncertainty in Rajasthan and Gujarat. Sowing area dropped in Rajasthan as 25.32 lakh Ha was sown under Guar as on 2nd Aug Vs 29.50 lakh Ha of previous year. However, bleak export enquires of gum will cap the gains. Guar seed prices will trade in range of 5500-6200 in near term wherein Guar gum prices are likely to trade in range of 11000-13000 levels.
Mentha oil Aug contract is likely to trade down with rise in supplies of new crop. Supplies of new crops have increased in Uttar Pradesh and Bihar. Export enquires of menthol are subdued that will keep prices under pressure. Yield has dropped in Bihar due to adverse weather condition that will cap the losses in Mentha oil. Mentha oil prices are likely to trade in range of 860-920.
Castor seed prices are likely to trade mixed to down on reports of rise in area under castor in Gujarat. Castor Sowing activities are running on positive note as about 2.77 lakh Ha was sown under castor as on 28th July across India Vs 1.39 lakh Ha of previous year. Moreover, slack demand of castor oil will also keep prices down in near term. India exported about 120 thousand tonnes of castor oil during Apr’23-May’23 Vs 143 thousand tonnes of previous year down by 16% Y-o-Y. China has been the major importer of castor oil but its buying dropped by 7% Y-o- Y to 63 thousand tonnes during above mentioned period. However, prevailing weather uncertainties in Gujarat will restrict the losses. Castor seed Sep prices are likely to trade in range of 6200-6550.
It closed at Rs. 223.50 on 03rd Aug 2023. The 18-day Exponential Moving Average of the commodity is currently at Rs 216.367. On the daily chart, the commodity has Relative Strength Index (14-day) value of 56.309. Based on both indicators, it is giving a buy signal.
One can buy near Rs.220 for a target of Rs. 235 with the stop loss of 214
It closed at Rs. 6761.00 on 03rd aug 2023. The 18-day Exponential Moving Average of the commodity is currently at Rs 6083.92. On the daily chart, the commodity has Relative Strength Index (14-day) value of 72.709. Based on both indicators, it is giving a buy signal.
One can buy near Rs.6650 for a target of Rs.7100 with the stop loss of 6500.
It closed at Rs. 11699.00 on 03rd Aug 2023. The 18-day Exponential Moving Average of the commodity is currently at Rs.11290.60 On the daily chart, the commodity has Relative Strength Index (14-day) value of 44.489. Based on both indicators, it is giving a buy signal.
One can buy near Rs. 11550 for a target of Rs. 12200 with the stop loss of 11200.
NOTE: *M.High / M.Low stands for Monthly High / Monthly Low
After a month upside move, CBR witnessed a pause in the rally. The dollar shot up this week, shrugging off the Fitch downgrade as data showed some resilience in the U.S. economy. Strength in the dollar pressured most commodities priced in the greenback, as resilience in the U.S. economy pushed up bets that the Federal Reserve will have enough headroom to keep raising interest rates. Rising oil prices also spurred some concerns that inflation will remain sticky, necessitating more rate hikes from the Fed. In the bullion counter, gold noticed fall for the first time in six weeks while silver slipped for continuous third week. Gold prices edged lower and were nursing steep losses for the week as signs of a resilient U.S. economy and job market pushed up fears of rising interest rates. In the energy complex, Crude oil reached multi months high but couldn’t sustain at higher levels. The supply situation was highlighted by a record 17 million barrel drop in U.S. crude stockpiles last week as refiners stepped up runs and exports topped 5 million barrels per day (bpd), according to data from the Energy Information Administration on Wednesday. Natural gas remained weak on higher inventory issues. In the base metals, copper couldn’t sustain at higher side whereas lead and aluminum managed to close higher. Zinc surrendered some of its previous gain. Among industrial metals, copper prices fell sharply this week, hit by a mix of dollar strength and waning optimism over more Chinese stimulus. Economic data from the country also pointed to a continued decline in business activity.
Profit booking took place in castor seed after a five week run-up. Cotton oil seeds cake futures revived from the low. Cotton candy futures too saw some marginal gains due to supply concerns amid reports of fall in area and growing fear over crop damage in wake of heavy rainfall in Gujarat. Kapas headed north in the similar fashion. Sharp fall witnessed in guar counter, which engulfed many trading days profit on bleak export enquires of gum also put pressure. Spices traded with different variations: turmeric saw speculative buying, jeera marginal and finally coriander closed down. Mentha oil was in range with rise in supplies of new crop. Turmeric Oct contract crossed the 17000 level on bleak supply outlook. Sowing activities has been slower due to weather concerns in major producing states like Maharashtra and Telangana. Prevailing supply shortage in the market pushed the prices up for new high of 63700 in Aug contract. Spot prices in Unjha market also traded higher due to active buying. However, cheaper availability of Syria and jeera in global market will lead to fall in export demand from India in coming days. Weather condition is likely to be drier in Gujarat that will lead to rise in arrivals that will cap the down trend.
Yellow metal is always the prominent choice among the investors to park their money and diversifying their portfolio in troubled times of geopolitical uncertainty, pandemic related environment and global economic slowdown concerns. In times of current global crisis and uncertainty, gold has become the most reliable reserve for global central banks as well. Geopolitical crises, supply chain difficulties and surging inflation weighed heavily on the global economy and reinvigorated investor interest, pushing the gold price briefly to USD 2,080 an ounce in April.
Gold Demand in India
Considering the current market conditions, investment demand is expected to remain strong as the combination of high inflation and heightened geopolitical tensions will likely to push demand for gold amongst investors.
The dollar index retreated below 102.5 for the second consecutive session as traders awaited a significant monthly jobs report that could influence US interest rate decisions. Mixed economic signals played a role, with jobless claims remaining near five-month lows and factory orders surging in June, while services sector growth slowed in July. The Dollar-Rupee pair found a firm foothold around the 200-day Exponential Moving Average (EMA) at approximately 81.70 levels, initiating a robust upswing towards a resistance range spanning 82.90 to 83, a level not seen in several months. As of the latest data, the pair is currently trading within this resistance zone, striving to overcome it, a task it has been tackling over the past two days. However, the recent momentum in the Dollar Index, which experienced a pause, combined with the noteworthy strength exhibited by the Pound and Euro following the Bank of England's rate hike decision, implies a potential weakening of the Dollar in the near future. Taking a technical perspective, the 14-period Relative Strength Index (RSI) for the USDINR pair is positioned around 68, slightly below the overbought threshold. This suggests that the pair might have limited upside potential at this point. It's worth noting that the RSI could act as a limiting factor, possibly impeding the USDINR from breeching the 83 level easily. Considering these dynamics, there is a possibility that the USDINR's progress beyond 83 could face resistance, with the potential for intervention from the Reserve Bank of India (RBI) also looming. This combination of technical and fundamental factors warrants a cautious outlook on the pair's upward momentum.
USDINR (AUG)pair is currently in an Bullish trend as trading above its major Exponential Moving Average where, the 21-day Exponential Moving Average is around 67.96. However, the pair is in overbought territory with a Relative Strength Index (14- day) value of 82.32 on the daily chart. Major support is seen around 82.2 levels, while resistance is expected near 83.32 levels.
One can sell near 83 for the target of 82 with the stop loss of 83.35
GBPINR (AUG) pair is currently in an Sideways trend as trading between its major Exponential Moving Average where, the 21-day Exponential Moving Average is around 105.52. However, the pair is in neutral territory with a Relative Strength Index (14- day) value of 49.73 on the daily chart. Major support is seen around 104 levels, while resistance is expected near 106.5 levels.
One can sell near 105.75 for the target of 104.75 with the stop loss of 106.25
EURINR (AUG) pair is currently in an Sideways trend as trading between its major Exponential Moving Average where, the 21-day Exponential Moving Average is around 90.8. However, the pair is in neutral territory with a Relative Strength Index (14-day) value of 52.41 on the daily chart. Major support is seen around 89.5 levels, while resistance is expected near 92 levels.
One can buy near 90.75 for the target of 91.75 with the stop loss of 90.25
JPYINR (AUG) pair is currently in an Sideways trend as trading between its major Exponential Moving Average where, the 21-day Exponential Moving Average is around 58.44. However, the pair is in neutral territory with a Relative Strength Index (14-day) value of 49.68 on the daily chart. Major support is seen around 57.6 levels, while resistance is expected near 59.7 levels.
One can buy near 58.25 for the target of 59.25 with the stop loss of 57.75
(2/5)
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The objectives of the Offer are to:
Achieve the benefits of listing the Equity Shares on the
Stock Exchanges and
Carry out the Offer for Sale of up to 20,925,652 Equity
Shares by the Selling Shareholder
Considering the P/E valuation on the upper price band of Rs.741, EPS and P/E of FY2023 are Rs.22.95 and 32.29 multiple respectively and at a lower price band of Rs. 705, P/E multiple is 30.72 Looking at the P/B ratio on the upper price band of Rs.741, book value and P/B of FY23 are Rs. 123.31 and 6.01 multiple respectively and at a lower price band of Rs. 705 P/B multiple is 5.72. No change in pre and post issue EPS and Book Value as the company is not making fresh issue of capital
Established in 1991, Concord Biotech Limited is a biopharma company which is R&D-driven and based in India. The company is one of the world’s leading developers and manufacturers of fermentation-based APIs across immune suppressants and oncology in terms of market share. The company has established a global presence and supplies its products to over 70 countries including the USA, India, Europe, and Japan consisting of over 200 customers. It has set up 3 manufacturing facilities in Gujarat comprising of API manufacturing facilities in Dholka and Limbasi and a formulation manufacturing facility in Valthera.
Established presence across the complex fermentation value chain: The company has established its presence across the fermentation value chain which requires specialized manufacturing expertise. This, combined with complicated technological capabilities, challenges in scaling up operations, and the huge capital investment in equipment and resources necessary, has resulted in a major entry barrier into the fermentation-based API industry. Its total annual installed fermentation capacity for APIs was 1,250 m3, as of March 31, 2023. Its well-invested fermentation capacities position it to cater to the large and growing global small-molecule fermentation-based API market, which is expected to grow from Rs.925 billion in 2022 to Rs.1,186 billion in 2026 at a CAGR of 3.6% from 2022 to 2026.
Global leadership in immunosuppressant APIs: Concord Biotech is one of the leading global developers and manufacturers of select fermentation-based APIs across immunosuppressants and oncology in terms of market share, based on volume in 2022. In 2022, the company became a major producer of fermentation-based APIs for immunosuppressants and oncology, with over 20% market share. As of March 31, 2023, Concord Biotech had a portfolio of five, three and six commercialized fermentationbased anti-bacterial, anti-fungal and oncology drug APIs, respectively. The antiinfective market, which is one of the largest segments by revenue among the therapeutic areas in the API market with a market size of Rs.2,643 billion in 2022 in terms of revenue, is expected to reach Rs.3,005 billion by 2026.
Scaled manufacturing facilities with a consistent regulatory compliance track record and supported by strong R&D capabilities: The company’s manufacturing facilities in Dholka and Limbasi are divided into 41 manufacturing blocks to process different classes of APIs. This provides a flexible plant configuration and allows it to scale up production volume to meet increased demand. Its R&D team, comprising 148 members, including members having doctoral qualifications, had commercialized 23 fermentation-based APIs, as of March 31, 2023.
Diversified global customer base with long-standing relationships with key customers: Over the years, the company has established a long-standing relationship with certain key customers, including leading global generic pharmaceutical companies. As of FY22, the company has built a base of 200 customers in over 70 countries for both its API and formulation products.
Continue to increase its API market share: Concord Biotech strives to capitalize its leadership position in the field of fermentation-based APIs across these therapeutic areas and continue to grow its API business by increasing the wallet share from its existing API customers, marketing its existing APIs to new customers and expanding its API portfolio.
Increase the presence of its existing formulations and expand into new formulations: Concord Biotech intends to pursue growth opportunities for its formulations in India, emerging markets, and the United States. Concord Biotech plans to grow its business by expanding geographic reach, launching newer dosage forms, and expanding its formulation portfolio with a focus on improving its profitability as well as utilizing its formulation manufacturing capacity more efficiently.
Improve cost management and operational efficiencies: Concord Biotech plans to enhance its profitability by continuing to improve its cost management and operational efficiencies, including: Process efficiency, Scale efficiency and Product mix. Concord Biotech intends to focus on high-value, low-volume products within its product portfolio. It also seeks to benefit from optimizing its product selection strategy.
Concord Biotech has a prominent presence in the biopharma industry globally. With a significant market share in immunosuppressants and oncology, the company has expertise in this specialized field. Besides, the company’s successful expansion of its formulation business in emerging markets showcases its ability to seize new opportunities and diversify revenue streams. Its successful formulation business expansion and financial track record demonstrate stability and growth potential. However, a significant amount of the company’s revenue is based on a small number of consumers. Moreover, the entire issue is Offer For Sale.
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HDFC Mutual Fund has launched HDFC Transportation and Logistics Fund, which will invest in companies that are at the forefront of transportation and logistics sector. It aims to capitalize on a wide array of opportunities across automotive, shipping & ports, railways, airports & airlines, e-commerce, road/rails/air cargo, supply chain/warehousing etc under the transportation and logistics theme. The scheme will be managed by Priya Ranjan. “At HDFC Mutual Fund, we have always endeavored to be a one-stop solution for varied financial goals and have delivered a wide array of opportunities through our diverse product bouquet. HDFC Transportation and Logistics Fund becomes the latest spoke in our product offering wheel,” said Navneet Munot, Managing Director and Chief Executive Officer, HDFC Asset Management Company.
Investors looking to combine investments with philanthropy could consider putting money in the new fund offer (NFO) of HDFC Charity Fund for Cancer Cure, a fixed maturity plan (FMP), with a tenure of 1,196 days. The scheme launched in collaboration with the Indian Cancer Society (ICS), will allow investors to donate returns generated from it to ICS for the treatment of underprivileged cancer patients. The NFO is currently open and closes on August 8. The minimum investment amount is ₹50,000 and in multiples of ₹1,000 thereafter. This NFO is the fourth edition of the cancer cure series. The scheme, a closed-ended FMP, is a debt-oriented scheme that will invest in money market instruments and government securities. Investors can choose either a 50% or 75% contribution of the income earned to be donated to the ICS. This could be done through the income distribution cum capital withdrawal (IDCW) option to the ICS.
Union Asset Management Company, the 25th biggest mutual fund house in India, has appointed Harshad Patwardhan as its chief investment officer (CIO), the company announced on August 3. From 2006 to 2016, Patwardhan served as the CIO-Equities India at JPMorgan (JPM) Asset Management, where he also was a member of JPM's offshore India equity team. Subsequently, he spent five years as the CIO of Edelweiss AMC before transitioning to Girik Wealth Advisors, a portfolio management service, as the CIO. As per Union AMC, Patwardhan, a B.Tech graduate from IIT Bombay, a PGDM from IIM Lucknow, and a CFA charter holder from the CFA Institute, brings with him over 28 years of extensive experience covering the entire gamut of research and portfolio management in Indian equities.
LIC Mutual Fund (LIC MF) on Monday said it has completed the takeover of schemes of IDBI Mutual Fund. The move is in line with LIC MF's aim to strengthen and diversify its product offerings, expand footprint and grow its assets under management (AUM) to emerge as a leading fund house in the country, according to a statement. The merger is effective from July 29. As of June 2023, LIC MF had an AUM of Rs 18,400 crore, while IDBI MF had Rs 3,650 crore. With the completion of the merger, out of 20 schemes of IDBI MF, 10 will be merged with similar schemes of LIC MF and the remaining 10 will be taken over by LIC MF on standalone basis, which will take its total scheme count to 38, the statement noted. With this merger, investors who have invested in IDBI MF schemes, will get access to LIC MF's diversified basket of product offerings covering equity, debt, hybrid, solution oriented themes, ETF and Index funds.
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