Latest news with #AdityaKhemka
Time of India
3 days ago
- Business
- Time of India
Aditya Infotech launches Rs 1,300 crore IPO
Aditya Infotech launches Rs 1,300 crore IPO MUMBAI: Aditya Infotech, the company behind CP Plus CCTV cameras, has begun testing investor interest for its Rs 1,300 crore initial public offering (IPO) amid growing investor participation in Indian equity issuances. Aditya Infotech, in which Dixon Technologies holds a minority stake, will accept bids from July 29 to July 31, according to IPO launch details shared by the company. Aditya Infotech will sell each share at a price range of Rs 640 to Rs 675. At the upper end of the price band, the company is valued at Rs 7,912 crore. Founder Aditya Khemka and his family own about 93% of the company, which was established in 1994, just after India opened its economy in 1991. Dixon holds roughly 7% in Aditya Infotech, with vice chairman and MD Atul Behari Lall sitting on its board. The IPO comprises a fresh issue of Rs 500 crore and an offer for sale (OFS) of Rs 800 crore by the Khemkas. Shares are expected to list on August 5. After the IPO, the founding family's stake in the company will drop to around 77%. India's IPO market has experienced significant growth in recent years on the back of a robust secondary market, positioning the nation among the top five IPO markets globally. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Up to 70% off | Shop Sale Libas Undo Aditya Infotech intends to use the IPO proceeds to pay off Rs 375 crore of debts. Its borrowings exceed Rs 400 crore. Its profit zoomed 205% to Rs 351 crore in FY25 and revenue grew about 12% to Rs 3,112 crore during the same period. The company has a 21% market share of India's video surveillance industry, which was valued at Rs 10,620 crore in FY25 and is projected to double by FY30. Aditya Infotech, world's third largest manufacturer of surveillance products, boasts a production capacity of over 15 million units in Kadapa, Andhra Pradesh and employs about 3,200 people. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
Economic Times
16-07-2025
- Business
- Economic Times
Don't peg your expectations from market too high; look for growth stories: Shreyas Devalkar
Shreyas Devalkar, Head-Equity, Axis MF, says the market currently favors established narratives, making them costly. Opportunities arise in sectors experiencing growth, such as manufacturing and import substitution. The government's Make in India initiative is boosting domestic production. Tourism and retail are also performing well. Private sector banks and NBFCs show potential for revival with lower interest rates. ADVERTISEMENT What is your take on the Indian markets because the Street is a bit divided? Some believe that a lot of these positives are already factored in and the valuations are expensive. But some also have the view that a lot of these positives are still to be factored in with respect to RBI rate cut, the tax cut, and India-US trade as well wherein India is expected to be in a sweet spot. Where is the market headed from these levels? Shreyas Devalkar: As far as the market is concerned, wherever there is an established story, it is always expensive. There are pockets where the stories are really established. You spoke of three aspects, the US tariff on India, the credit and the interest rate part and earnings. When it comes to the US tariff part, we have to see how it evolves, especially as it is not only about India versus US, but also India versus China, and other competing countries where they also have a comparative advantage. In such a situation, we need to wait and watch not only the tariff on India, but also on all these countries so that the end game is established. Aditya Khemka on US tariff threat over pharma and what to bet on there The way it looks, as of now, the market has tried to factor in certain gains in some aspects. So when it comes to established stories like electronics, manufacturing, services, there is a shift from China to India. The second part is the Make in India theme where we are trying to build in India and trying to reduce import dependence. It can be in solar, and is actually in multiple parts and sub-parts of even consumer durables. The government has taken multiple steps in that. Another part that is growing very well is manufacturing. Such stories are emerging very nicely and there the valuations definitely remain high. So, these stories are in capital goods, power sector, capex, and EMS, and here we are driving import substitution. On the other hand, in consumption, they are in tourism, travel and retail. Some of the retail stories are doing extremely well. These are the segments which continue to do well and where the valuations are high. We need to bear with it. As long as the growth delivery remains, the valuation may sustain. There are pockets where valuations are not that high and there is expectation of revival and that is one of the aspects which you highlighted on the credit and the lower interest rate. There, the private sector banks' valuation has not got re-rated compared to pre-Covid days. In some cases, there is a de-rating also. Overall, NBFC valuation is broadly similar to pre-Covid days' barring a few cases here and there because of the slowdown in credit growth as well as deposit growth. Obviously these are the reasons why it has happened. Now, with lower interest rates and better transmission, one may see some revival there. ADVERTISEMENT But would you be comfortable putting fresh money to work at this level right now? Shreyas Devalkar: As a long only investor, we end up investing. So, even if you do not end up putting in fresh money, whatever you own is as of yesterday's price. That is the way we look at it. So, from the point of view of the investors, the market has gone up substantially. Over a longer period of time, the market has given returns closer to nominal GDP growth and one should set right expectations from the returns from the equity market rather than expecting too high returns which has been the case in '22, '23 and '24 because there is a substantial re-rating in the stories. So, from that re-rating, a very high return is difficult to expect and on the other hand there are certain segments where we need to see some revival in growth to get a good return. Otherwise, the right return expectation is important here. ADVERTISEMENT In your latest fact sheet, you have mentioned that while our overall macros look good, we are not completely out of the woods yet. In light of the recent CPI numbers which have been much better than what the Street was expecting, overall macros in terms of liquidity are looking good. Where are you still expecting to see some more momentum in order to say that a broad-based recovery in macros is seen? Shreyas Devalkar: As far as overall growth for the economy is concerned, if you take the last two decades, it was on the back of three things. One was monetary policy and that is in favour. As of now, we are seeing interest rates coming down. We are seeing that getting transmitted also by various banks and NBFC. So, its impact will be seen. ADVERTISEMENT The other aspect has been seen at multiple points in time in multiple countries – fiscal expansion. Now, there is fiscal consolidation. So not only India, most other countries are trying to do it. But fiscal consolidation has a certain impact on growth. More importantly, the third aspect is the export growth because for a large part of listed companies, especially in largecaps, there is an element of export directly or indirectly and that is where whenever the global economy is doing very well, there is a positive impact on the Indian economy. So, out of these three factors of growth, monetary policy is definitely in favour, interest rates because of the inflation coming down will also drive better growth for us. But because of the fiscal as well as the global growth not being there, the overall recovery in growth may not be as expected. So one should look at it in a more pragmatic manner as far as growth is concerned. Help us understand what sort of portfolio changes have you made of late because in your fact sheet, I believe you have reduced your weightage in autos while adding a bit more into consumers. How do you manage this positioning right now? Also, any sectors you will closely watch for increasing weightage? Shreyas Devalkar: Wherever there is growth and wherever there is earnings cut, these are the two aspects one ends up trying to predict. So, both auto and auto ancillaries have seen earnings cut both because of the global and local environment. That is where over five-six months, we have reduced our exposure. ADVERTISEMENT At the same time, despite high valuations, some of the capital goods companies, especially in the power space, have done better on the growth front. So, it is not broad-based capex as such, but definitely there are certain segments of that, segments of electronic manufacturing, import substitution, and all these in the overall capital goods space. There are multiple companies here and in that context, we have increased some exposure to that segment. As far as consumption is concerned, exposure to some retail companies was increased over the last five-six months as it is reflected in the fact sheet. (You can now subscribe to our ETMarkets WhatsApp channel)
Time of India
15-07-2025
- Business
- Time of India
Steve Englander on Trump's 50-day window to Putin; crypto & other classes and more
Tired of too many ads? Remove Ads Also Read: Aditya Khemka on US tariff threat over pharma and what to bet on there Tired of too many ads? Remove Ads , Global Head of G10 FX Research and of North America Strategy,, says the crypto market is performing well this week. Stable coins are seeing bipartisan agreement. This is boosting prices. Bond yields are rising due to fiscal concerns. The market is optimistic about technology's potential. Fixed income faces upward pressure. Forex is struggling. US yields are increasing for negative reasons. Tariffs' impact on the dollar is inconsistent.I do not think it will mean much till day 49 and markets have started timing the risk on Trump statements and obviously August 1st is the date they have focused on for most trading partners and 50 days for Russia. In some ways, it is reassuring to Western Europe that the US is moving back into a more traditional foreign policy line. But right now, it is wait and see. When it comes to tariffs, the market sees a way out. It is not clear what the way out is for the Russia-Ukraine war. So, they will be watching developments to see if any progress is made in terms of coming to a ceasefire, but for now, 50 days is a long way off.I am not going to pretend to be an expert on Russian politics. I mean, he has got his priorities. He has to decide how credible the US threat is and whether he wants to respond in a positive way and whether he can walk away from the war in a way that works for him politically. So, we will have to wait and see. The other tariffs are probably going to be more market moving if we do not make progress. But so far, the market seems to think that there is a lot of room for negotiation here and US equities are either at record highs or very close to record highs and keep going up. It is a sign that the market expects some resolution on the standard tariffs as opposed to war related crypto is having a good week and dealing with stable coins is one of the few topics on which there seems to be a bipartisan consensus here. The administration seems to be so friendly towards that, which is part of the reason we are seeing prices go up. It is also a sign that the market is relatively optimistic on this background, we keep seeing bond yields drift up and that is related to the fiscal bill and a lot of the ways by which it closes budget holes are questionable. So, we will probably see the deficit and debt increase beyond what they are projecting with the bill. So, in some ways, the market is saying what do we have the most conviction on? If it is equities, it is because of technology. Things are exogenous to policy not because of policy but because they see technology as opening up a lot of look at the fixed income market because there is a story there from the fiscal bill which is that maybe upward pressure on yields. FX is losing out on this. You ask if US yields go up, do we buy the dollar? But they are going up for a bad reason. Is that a reason to sell the dollar, what about the tariffs? In December, tariffs were positive for the dollar. In April, they were negative. So, the market has been looking for opportunities outside of FX at the moment.
Time of India
14-07-2025
- Business
- Time of India
Aditya Khemka on US tariff threat over pharma and what to bet on there
Aditya Khemka , Fund Manager, InCred Asset Management , says a possible 200% tariff looms over pharma exports to the US though investors are currently not reacting to the proposed tariff. Pharma companies exporting to the US may face earnings downside. InCred Asset Management avoids US-facing generic companies which may face earnings challenges in the next two years. On the other hand, Khemka likes domestic pharma companies with strong brands are experiencing double-digit growth and are using their cash flow wisely to create more inorganic growth opportunities for themselves. He also likes asset-light hospital companies What is your take on Divi's Lab because for today, the stock is in focus on the back of the setback coming in from Novartis and of late, we have seen the stock reacting sharply to that. But it is one of those strong candidates that even after negative news flows continues to trend higher. How does this news impact the earnings and the outlook for the company? Aditya Khemka: Entresto is a very key product for Divi's, and will be a substantial part of their earnings. Once Entresto goes generic, some of those earnings will evaporate. But let us not forget Divi's has done a substantial amount of capex over the last four-five years and that capex probably still has some steam left in terms of monetisation. As and when the incremental capex gets monetised, the earning growth might still not be a challenge for Divi's. Play Video Pause Skip Backward Skip Forward Unmute Current Time 0:00 / Duration 0:00 Loaded : 0% 0:00 Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 1x Playback Rate Chapters Chapters Descriptions descriptions off , selected Captions captions settings , opens captions settings dialog captions off , selected Audio Track default , selected Picture-in-Picture Fullscreen This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Opacity Opaque Semi-Transparent Text Background Color Black White Red Green Blue Yellow Magenta Cyan Opacity Opaque Semi-Transparent Transparent Caption Area Background Color Black White Red Green Blue Yellow Magenta Cyan Opacity Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Drop shadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like 장현성이 선택한 '인권팔찌', 이유가 있어요 국제앰네스티 지금 받기 Undo Having said that, from a valuation standpoint, we are very cautious on stocks like Divi's where valuations are overstretched compared to their historical averages. These stocks are trading 40-50% higher than their historical average valuation multiples and we will continue to sit out this one. For us the downside seems to be higher than the upside and hence we are not owning the company. Let us move away from the Divi's news flow for a bit right now and talk about the tariff implication on the entire pharma space. There's a 200% tariff possibility even though it is over the next 12 to 18 months. So, how feasible or how realistic is this 200% because it seems too high for tariffs on the entire pharma space? Secondly, what kind of impact do you think it could have on the overall sentiment in the pharma space? Aditya Khemka: Earlier it was 25% and then it is 200%, I do not think investors at this point are paying any heed to the tariff percentage that the Trump administration is talking about. It remains to be seen if they will at all have any kind of tariffs on the pharmaceutical space. These may be more of an arm-twisting tactic and the Street sees it as a sort of an arm twisting tactic and realistically they may not end up imposing any kind of tariffs. Having said that, if you look at the pharma companies that export to the US, even if some tariff is imposed, then there is a significant downside to the earnings of these pharma companies and that means higher risks for an investor in the space. We at InCred Asset Management, do not hold any US generic companies or companies that sell to US markets substantially and hence our portfolio is relatively immune to this kind of a situation. Live Events You Might Also Like: Markets in pause mode as tariff uncertainty lingers: Sudip Bandyopadhyay But yes, I agree that earnings are at risk. We do not know what percentage tariffs can come out. It can be 20%, it can be 200%, it can be zero for all we know. But the risk in these stocks have definitely gone up. I have not seen the reward going up. What are your earning projections because in the last quarter, we have not seen the companies performing that well. There are concerns over the lower contribution from g-Revlimid. The pricing is not that supportive even for the Indian markets. The data suggest that we are still in that low single-digit growth number. What is your own sense with respect to the earnings and what factors could be at play? Aditya Khemka: For the US generic stocks, earnings for the next two years will be a challenge. Many of these companies have got g-Revlimid, others have got other interesting products that they have launched over the last two years and these products will get incremental competition in 2026 or 2027. Hence, earning growth for the majority of these stocks will be a challenge. We are looking at single-digit CAGR numbers in terms of earnings from here and hence the valuation multiples that these stocks trade do not justify that kind of an earnings growth and we will definitely see some downside in these stocks if the earnings growth is in single digits. On the broader US generic space, we are very cautious and pessimistic on the outlook. In the domestic pharma space though average growth is in single digit, the good pharma companies, the pharma companies with good brand presence are growing in double digits and using their cash flow judiciously to acquire smaller companies and add inorganic growth on top of it. So, we remain bullish on those companies that are more focused on India, the branded market, and are using their cash flow wisely to create more inorganic growth opportunities for themselves. What is your view on the diagnostic space? There was some recent news flow that Amazon is now foraying into that quick diagnostic space offering at home services. What impact do you think this will have on the entire diagnostic space? Aditya Khemka: The Indian diagnostic market is growing at 10% at a market level and then 85% of the diagnostic market is unorganised. So, I would say there is more and enough space for competition to come in. We have already seen Tata 1mg, Reliance Netmeds, come in and do this online discounted pricing model that Amazon will probably try now, but it does not work that well in the diagnostic space or in the healthcare space broadly speaking because healthcare is a matter of trust, matter of presence, matter of brand which cannot be built overnight, which cannot be justified by over pricing. You Might Also Like: View: India has negotiated well with Trumpian policy, but it may have to take a stand soon Diagnostics companies that are format companies that we own, will continue to do well regardless of how many new entrants come in on the online format because the online format one lacks the trust of the patient and the doctor and two, there is more than enough space for each and every player to come and sort of get share from the unorganised players given that only 15% of the market is organised and 85% of the market is unorganised. Tell us about the overall healthcare and the hospital chains rather because we have seen consolidation in that particular sector. The companies have been announcing their capex and even the stock prices and the investors were getting rewarded because of that. Do you believe that with the kind of capex, the growth projections, and the growth on ground, the valuations are justified? What is your overall sense of the hospital chain sector? Aditya Khemka: It has to be very stock specific. Max Healthcare trades at 100 times trailing cash flow. Apollo is trading at 60 times trailing cash flow. Whereas Healthcare Global, is 24-25 times trailing cash flow. So, I cannot really make a statement on the entire hospital space because each individual hospital stock has a different valuation metric and is at a different spectrum altogether in terms of those valuation metrics. I would rather summarise that we are very gung-ho on the hospital space. India has a lot of scope for hospitals to grow, especially when they follow the asset light model where they lease the land and building and they do not really own the land and building. So, there is a lot of space to grow. But there are certain hospital stocks that are very expensive and may not make money for investors in the medium term. Then, there are also extremely cheap hospital stocks which can make a substantial amount of money for investors over the next three to four years.
Hindustan Times
23-05-2025
- Business
- Hindustan Times
Sensex, Nifty close higher: What drove stock market to bounce back today?
India's benchmark indices Sensex and Nifty bounced back sharply on Friday driven by buying of blue-chip IT stocks and consumer goods major ITC. On Thursday, the BSE Sensex tanked 644.64 points or 0.79 per cent to settle at 80,951.99. The Nifty tumbled 203.75 points or 0.82 per cent to 24,609.70. After a flat start in early sessions on Friday, the 30-share BSE benchmark gauge Sensex, bounced back and jumped 769.09 points to settle at 81,721.08 after late morning deals. Among the biggest gainers from Sensex were ITC, Eternal, Power Grid, Tech Mahindra, Infosys and HCL Tech. Deviating from the trend, pharma index lost 0.5 per cent. Sun Pharma was the only laggard, dropping 3.3% as brokers expect lower earnings citing softer revenue guidance in this fiscal year. Among the gainers, Honasa Consumer jumped 12 per cent driven by increased revenue estimates as growth of their new brands improved outlook. The NSE Nifty surged 243.45 points to 24,853.15. Despite the gains in the session, both the Nifty and Sensex are down about one per cent for this week, Reuters reported. Easing US treasury yields was attributed as the major reason for broader recovery in emerging markets on Friday. MSCI Asia ex-Japan up 0.4 per cent following a 0.9 per cent drop in the previous session. Elevated yields and expectations of Trump's new tax cut bill adding trillions of dollars to US debt prompted investors to offload holdings in emerging markets. Foreign portfolio investors (FPIs) offloaded more than ₹5,000 crores worth of Indian equities on Thursday. Yields eased on Friday as the new tax cut bill narrowly passed the US House, offering relief to some emerging markets. Aditya Khemka, fund manager at InCred Asset Management, said, 'With lingering uncertainty over the US economy, foreign flows and trade negotiations, it is likely that Indian markets will witness consolidation in the short term.' 'The fact that there is a sequential earnings recovery in the March quarter is positive for domestic equities, but the revival is modest at best which will keep the gains capped,' Reuters quoted Khemka as saying.
