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The Hindu
4 days ago
- Business
- The Hindu
Sales plummet in country's first BIS-recognised national flag manufacturing unit in Karnataka
It is that time of the year again when a tricolour is seen in every nook and corner of the country with everyone, from toddlers to senior citizens, taking pride in celebrating Independence Day. However, the same zeal is not to be seen in the nation's first BIS-recognised khadi flag manufacturing unit at Bengeri in Hubballi, as flag sale has dropped for the fourth year in succession. This year, sale of flags has been reduced to just a quarter of the previous year. Polyester reigns Despite the hype over the 'Har Ghar Tiranga' campaign, sales at the BIS recognised national flag manufacturing unit, which functions under Karnataka Khadi Gramodyog Samyukta Sangha (KKGSS), Bengeri in Hubballi, are dwindling thanks to the amendment made to the Flag Code allowing 'polyester flags', and the general shift towards the cheaper flags. The Union Government made the amendment to the National Flag Code of India just before the announcement of 'Har Ghar Tiranga' campaign to mark the platinum jubilee celebrations of India's independence in 2022, allowing production of national flags using polyester cloth. Prior to 2022, the flag code allowed the use of only khadi cloth. KKGSS has been manufacturing BIS recognised national flags since 2004. 'Last fiscal, KKGSS had sold flags worth ₹1.8 crore, which was lower compared to the previous years. This year, the number has gone down further. We have sold flags worth just ₹50 lakh till date. We contacted every single khadi sangha that placed bulk orders with us. But they too are helpless, as they have unsold stock,' Shivanand Mathapathi, Secretary of Samyukta Sangha (KKGSS), told The Hindu. No more bulk orders KKGSS used to get bulk orders from across the nation. But the 'Har Ghar Tiranga' campaign and the amendment to the flag code have actually taken away the advantage that khadi units had. According to BIS standards, the flag unit is required to manufacture only nine sizes of national flags, but not the size of flag mentioned in the campaign. Added to this, the polyester cloth flags are cheaper. In all, around 1,200 persons, mainly women, are involved in the national flag manufacturing and khadi work in khadi units spread across the districts of Dharwad and Bagalkot. The khadi cloth used for making the flag comes from 21 villages in Bagalkot district, and final production happens at Bengeri. 'We manufacture in anticipation of orders. As of now, we have a stock of flags worth ₹2.5 crore. If the same situation continues, we will be forced to stop production, rendering our employees jobless,' Mr. Mathapathi said. Plea of workers The plea of khadi workers and activists is that the amendment to the flag code be repealed, and it should be made mandatory for government institutions to purchase only khadi flags. However their plea seems to have fallen on deaf ears. When the flag code was amendment, the then Union Minister for Parliamentary Affairs and the present minister for Consumer Affairs Pralhad Joshi had termed it a temporary measure to cater to the huge demand for flags on account of the 'Har Ghar Tiranga' campaign. But, even after four years, this 'temporary measure' is still in place. History of KKGSS KKGSS was established on November 7, 1957 by a group of Gandhians and khadi activists led by Venkatesh Magadi, and others. Spread over an area of 17 acres, KKGSS was thriving at one point of time with 58 khadi sanghas working under it. The establishment of the national flag manufacturing unit, and its subsequent recognition by Bureau of Indian Standards (BIS) in 2004, had brought the smile back on the faces of khadi activists and workers. But the amendment to the flag code is snatching away their smile slowly.
Business Insider
23-05-2025
- Business
- Business Insider
Nvidia Stock (NVDA) Maintains Bullish Tempo as Earnings Day of Reckoning Looms
Nvidia (NVDA), the trailblazing AI-tech stock, has staged a remarkable comeback, surging 33% over the past month. While investor concerns around rising competition, escalating global tariffs, and macroeconomic uncertainties have weighed on NVDA's performance, the company's underlying growth trajectory, driven by AI innovation and data center expansion, remains robust. Given this foundation, NVDA presents an attractive buying opportunity at current levels. Confident Investing Starts Here: Moreover, with a keenly anticipated earnings day looming next week, NVDA is on course to register yet another earnings surprise, which could push the stock beyond its all-time highs of ~$150 per share. Data Center Revenue Continues to Mushroom Despite intensifying competition within the AI sector, Nvidia maintains an overwhelming market share—estimated at over 80%—in AI-related data center GPUs. Its data center segment has experienced exponential growth, expanding from modest levels five years ago to a staggering $115 billion in revenue over the trailing 12 months. Nvidia's pioneering GPUs continue to dominate, while its latest Blackwell chips are rapidly gaining traction. Currently, data center revenues account for a significant 90% of total company revenue, indicating a high level of dependency. Nevertheless, this segment remains well-positioned for sustained growth, as major tech companies continue to invest heavily in AI infrastructure. According to Statista, global data center revenues are projected to reach US$450 billion in 2025, with network infrastructure contributing $250 billion. The market is expected to expand at an 8.4% CAGR, reaching $625 billion by 2029. As the undisputed leader in AI data center solutions, Nvidia stands to benefit enormously. Underscoring this outlook, Nvidia CEO Jensen Huang emphasized at the GTC Conference in March 2025 that data center spending has reached an 'inflection point.' He projected that annual capital expenditures in this domain could surpass $1 trillion by 2028, primarily driven by the demand for high-performance computing needed to power reasoning-based AI models. Despite fears that macro headwinds and trade policies could dampen capital investment from NVDA's major clients, companies like Amazon (AMZN), Microsoft (MSFT), and Alphabet (GOOGL) have shown no signs of slowing down. On the contrary, Meta Platforms (META) recently raised its capital expenditure guidance to $64–$72 billion, up from $60–$65 billion previously. Blackwell Ultra, Rubin AI & Other Innovative Platforms Nvidia continues to maintain its innovation momentum, regularly unveiling industry-leading technologies. The Blackwell architecture, launched in late 2024, has already garnered significant adoption. Investors will be closely watching NVDA's updates on future products, including the Blackwell Ultra slated for release in the second half of 2025, the Rubin AI platform expected in 2026, followed by the launch of Feynman processors, expected in 2028. There is already strong excitement building for Blackwell Ultra, as it is expected to deliver 50 times enhanced performance than the initial H100 chips. In addition, Nvidia's newly announced NVLink Fusion initiative will enable customers and partners to integrate non-Nvidia CPUs and GPUs alongside Nvidia products to build semi-custom AI infrastructure. This new tech will enable the speedy connection of multiple AI chips together. Another Earnings Beat Expected for NVDA Nvidia is set to report its Q1 2025 earnings on May 28. The company is projected to post earnings per share (EPS) of $0.89, a remarkable 46% year-over-year increase on revenue of approximately $43 billion, implying a robust 65% YoY growth rate. This would mark the company's 10th consecutive earnings beat. Investors will closely scrutinize the forward guidance, particularly for Q2, as it will offer critical insight into how ongoing macroeconomic dynamics may impact near-term results. NVDA's Consistent Revenues and Earnings Growth Looking at the last five years, NVDA's revenues have grown more than 10x from $11 billion in FY2020 to $131 billion in FY2025. What's even more applaudable is that its earnings have grown 25-fold from $2.8 billion to $72 billion over the same period, thanks to consistently expanding profit margins. Despite headwinds such as declining China revenues due to export restrictions, Nvidia has consistently added $4–5 billion in quarterly revenues, thanks to its growing global presence and strategic pivots. Gross margins now exceed 70%, even as the company ramps up capital spending to sustain its leadership in AI. This data gives me a tremendous sense of comfort in the solid business fundamentals and growth trajectory NVDA has consistently maintained over the years, driven by its AI prowess and continuous innovations, thereby retaining its industry leadership. While declining China revenues due to export restrictions are a concern, NVDA is making up for the lost revenues by diversifying geographically and tapping into new markets, with the Middle East turning out to be a great potential source of future revenues. NVDA recently entered into a 5-year meaningful partnership with Humain, an AI company backed by Saudi Arabia's Public Investment Fund. Other collaborations in the future can be a potential driver for incremental revenues. Rare Discount for a Quality Compounder For the first time in quite a while, Nvidia appears attractively valued ahead of its upcoming earnings call. The stock currently trades at a forward P/E of about 30x based on FY2026 estimates—roughly a 35% discount to its five-year average of 48x. Given Nvidia's track record of consistent outperformance and the significant upside tied to its Blackwell AI platform, this valuation presents a compelling entry point. Any short-term weakness in the stock may offer a timely opportunity for long-term investors. Is Nvidia a Buy, Sell, or Hold? On Wall Street, NVDA stock carries a Strong Buy consensus rating based on 34 Buy, five Hold, and one Sell ratings over the past three months. NVDA's average price target of $164.51 implies approximately 24% upside potential over the next twelve months. Nvidia Set to Flourish as Stock Indices Recover With stock markets now recovering from a topsy-turvy first five months of 2025, NVDA is precisely the kind of stock astute investors buy the dip on. That ship may have sailed, but it doesn't mean NVDA stock doesn't have more in the tank for new shareholders. Next week's earnings report could be a considerable price catalyst for NVDA — as long as it delivers what market analysts expect. Nvidia's first half of 2025 has been marked by turbulence, driven by trade policy uncertainty, macroeconomic pressures, and declining sales in China. Despite these headwinds, the stock's recent rebound highlights the company's resilience and sustained investor confidence. With its dominant position in AI, robust innovation pipeline, and strong financial track record, Nvidia appears undervalued at current levels. For long-term investors looking to capitalize on AI's transformative growth, NVDA presents a compelling investment opportunity.
