Latest news with #EquirusSecurities
Yahoo
19-05-2025
- Business
- Yahoo
India's Protean eGov sinks on ouster from key government project
(Reuters) -Shares of Protean eGov Technologies tumbled 20% on Monday after the company said it was ruled out of bidding for an Indian government project, creating doubt about a service that accounts for nearly half of its revenue. Protean has been managing applications for Permanent Account Numbers, or PAN cards -- used to maintain every taxpayer's record -- since around 2006. It claims roughly 60% market share for the service, which accounts for about half of its revenue. However, Protean said on Sunday that the income tax department has "not considered favourably" the company's bid as a service provider for PAN 2.0, a $168 million project to consolidate multiple platforms and portals, and quicken processing times. Protean's shares slumped a maximum-allowed 20% on Monday, on course for their worst day since listing on the National Stock Exchange in early February this year. The company said it expects no operational impact on its current PAN business of processing and issuing PAN cards. "We have reached out to the tax department to seek further clarity on their stance. As of now, we see limited impact," Managing Director Suresh Sethi said on an investor call. However, Equirus Securities forecast a much bigger hit. "While the impact (this fiscal year) may be muted, we expect a 75%-100% collapse in this revenue stream over the next 2-3 years," Equirus Securities said, downgrading the stock to "sell". "About one-third of the industry's PAN requests currently originate directly from websites of PAN service providers -- volumes that will almost certainly shift to the PAN 2.0 contract winner once it goes live." It was not immediately clear who else bid for the project. ICICI Securities said Protean was considered the leading contender "by a distance" for PAN 2.0 and losing out "creates uncertainty on PAN business outlook over (the) medium term." ($1 = 85.3330 Indian rupees) Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Reuters
19-05-2025
- Business
- Reuters
India's Protean eGov sinks on ouster from key government project
May 19 (Reuters) - Shares of Protean eGov Technologies ( opens new tab tumbled 20% on Monday after the company said it was ruled out of bidding for an Indian government project, creating doubt about a service that accounts for nearly half of its revenue. Protean has been managing applications for Permanent Account Numbers, or PAN cards -- used to maintain every taxpayer's record -- since around 2006. It claims roughly 60% market share for the service, which accounts for about half of its revenue. However, Protean said on Sunday that the income tax department has "not considered favourably" the company's bid as a service provider for PAN 2.0, a $168 million project to consolidate multiple platforms and portals, and quicken processing times. Protean's shares slumped a maximum-allowed 20% on Monday, on course for their worst day since listing on the National Stock Exchange in early February this year. The company said it expects no operational impact on its current PAN business of processing and issuing PAN cards. "We have reached out to the tax department to seek further clarity on their stance. As of now, we see limited impact," Managing Director Suresh Sethi said on an investor call. However, Equirus Securities forecast a much bigger hit. "While the impact (this fiscal year) may be muted, we expect a 75%-100% collapse in this revenue stream over the next 2-3 years," Equirus Securities said, downgrading the stock to "sell". "About one-third of the industry's PAN requests currently originate directly from websites of PAN service providers -- volumes that will almost certainly shift to the PAN 2.0 contract winner once it goes live." It was not immediately clear who else bid for the project. ICICI Securities said Protean was considered the leading contender "by a distance" for PAN 2.0 and losing out "creates uncertainty on PAN business outlook over (the) medium term." ($1 = 85.3330 Indian rupees)
Yahoo
19-05-2025
- Business
- Yahoo
India's Protean eGov sinks on ouster from key government project
(Reuters) -Shares of Protean eGov Technologies tumbled 20% on Monday after the company said it was ruled out of bidding for an Indian government project, creating doubt about a service that accounts for nearly half of its revenue. Protean has been managing applications for Permanent Account Numbers, or PAN cards -- used to maintain every taxpayer's record -- since around 2006. It claims roughly 60% market share for the service, which accounts for about half of its revenue. However, Protean said on Sunday that the income tax department has "not considered favourably" the company's bid as a service provider for PAN 2.0, a $168 million project to consolidate multiple platforms and portals, and quicken processing times. Protean's shares slumped a maximum-allowed 20% on Monday, on course for their worst day since listing on the National Stock Exchange in early February this year. The company said it expects no operational impact on its current PAN business of processing and issuing PAN cards. "We have reached out to the tax department to seek further clarity on their stance. As of now, we see limited impact," Managing Director Suresh Sethi said on an investor call. However, Equirus Securities forecast a much bigger hit. "While the impact (this fiscal year) may be muted, we expect a 75%-100% collapse in this revenue stream over the next 2-3 years," Equirus Securities said, downgrading the stock to "sell". "About one-third of the industry's PAN requests currently originate directly from websites of PAN service providers -- volumes that will almost certainly shift to the PAN 2.0 contract winner once it goes live." It was not immediately clear who else bid for the project. ICICI Securities said Protean was considered the leading contender "by a distance" for PAN 2.0 and losing out "creates uncertainty on PAN business outlook over (the) medium term." ($1 = 85.3330 Indian rupees)
Time of India
05-05-2025
- Business
- Time of India
ETMarkets Smart Talk: From Gold to large caps—where smart money is moving to build wealth, Ashutosh Tiwari decodes
In this edition of ETMarkets Smart Talk, Ashutosh Tiwari, Managing Director and Head of Equities at Equirus Securities, offers a sharp lens into where the smart money is flowing in today's volatile market. From the quiet but powerful moves in gold reserves by global central banks—especially China—to the relative value emerging in large-cap stocks , Tiwari breaks down how investors can realign their portfolios for long-term wealth creation . He also shares why mid and small caps demand caution, where FIIs are placing their bets, and why sectors like financials, manufacturing, and rural consumption are likely to outperform. Edited Excerpts - Thanks for taking the time out. We are seeing some volatile swings in the markets, thanks to the back-and-forth from Trump on tariffs and now some geopolitical concerns amid tensions between India and Pakistan. How are you looking at all this? A) While tariff related concerns have abated a bit, and we are unlikely to see very high tariffs but even a 10% tariff which is imposed as of now will cause inflation and therefore recessionary fears in USA and growth moderation across the world is a likely scenario. Post Pahalgam attack, general expectation is that India will respond in some way due to public outrage. Amid these uncertainties, markets are likely to remain volatile in the near term. Q) It looks like we have entered a low-interest-rate environment. What should the asset allocation strategy be for an individual in the age bracket of 30–40 years? A) While markets have corrected, they still are not very attractive, therefore investors should keep a diversified portfolio with a mix of Equity, gold and debt. In equities, portfolio should be more focussed towards large caps where valuations are reasonable vs historical and less towards small and mid caps where valuations are still higher than historical average. Despite the run up, gold remains a good asset class to invest in as with global uncertainties and Central banks reducing share of US treasuries and increasing exposure to gold, prices of gold is likely to remain in uptrend. Q) What is your take on the results that have come out from India Inc., and what are your expectations for the next few quarters? A) Earnings so far have been soft in most of the sectors as demand remains muted in domestic as well as overseas markets. We are still seeing FY26 earnings cut for most of the companies under coverage due to demand uncertainty. Rural demand is likely to remain stronger than urban over next few quarters as rural incomes are improving due to good crop, forecast of monsoon is also good. On the other side urban demand is likely to remain weak in the near term. However, on the positive side, due to recent fall in commodity prices, margins of companies should improve going ahead. Q) Gold is back in the limelight as it hit the Rs 1 lakh mark in the physical market. Is it no longer just a safe haven but also a money-making machine? It has been outperforming equities for the past couple of years. A) With global uncertainties emanating from tariffs imposed by USA, dollar index has been depreciating. As China is a big holder of US treasuries, overhang of selling in US treasuries remains and hence dollar is likely to remain weak. Post freezing of Russia's reserves of approx. US$ 300bn by USA and its allies in 2022, many countries have been trimming US treasuries in their reserves and replacing them with gold, due to which share of gold in global reserves of countries have gone from around 13-14% in 2022 to 18-19% now. Gold is still around 5.5% of Chinese reserves, much lower than global average and hence gold is likely to remain strong. Q) How should one be looking at the small- and mid-cap space in FY26? A) While mid and small cap valuations have corrected from their last year peak, they are still more than one standard deviation above their historical mean and therefore one needs to be selective in mid and small cap space at current juncture. Investors should look for companies that have good track record on cash flow generation and trading at reasonable valuation vs their pre Covid multiples. In many cases investors look at the last 3–5-year average trading multiples and compare current multiples but it's not the right approach as last 3-year multiples were significantly higher than mean. Q) Where is the value in the market after the recent fall we have seen? A) Large caps are looking better in the current scenario vs mis-small caps in terms of valuations vs historical. We find better value in financials, cement, building materials and manufacturing companies. The recent fall in commodity prices will aid margins in manufacturing and some related sectors. Apart from this, investors should look at rural consumption related stocks as demand is expected to be relatively better over there. Capital goods and industrial companies fell sharply with moderation in capex as they were trading at a very high valuation, but post correction of these stocks are reasonably valued. Q) How are FIIs viewing Indian markets? We have seen some net buying in the past few sessions, but for the month, FIIs have pulled out more than Rs 13,000 crore from the cash segment of Indian equity markets. A) India is right now in a better spot compared to most of the countries in Asia due to higher dependence on domestic consumption vs exports. With higher tariffs on China, even after assuming it comes down from current levels, India is likely to benefit from some supply chain shifts away from China. India is likely to strike a trade deal with USA by rationalizing tariff on some items where duties are very high and increasing energy and defence purchase from US. With the decline in the dollar index, INR has strengthened further supporting FII flows. We believe that FII selling, if any, will be moderate going ahead. Q) Have you made any changes to your strategy or portfolio to balance out the volatility arising from external factors such as tariffs or geopolitical concerns? A) As discussed above, financials, rural dependent sectors and manufacturing companies are looking better currently from an investment perspective. Investors should avoid IT companies as there are question marks on their growth due to recessionary fears in the USA and valuations are still higher than average levels pre Covid. Investors should keep some cash to deploy if market corrects due to geopolitical tensions.
Economic Times
28-04-2025
- Business
- Economic Times
Trent Q4 Preview: Up to 29% YoY rise in revenue expected. Margins could see contraction
Live Events Nuvama Axis Securities Sharekhan Equirus Securities (You can now subscribe to our (You can now subscribe to our ETMarkets WhatsApp channel Tata Group's lifestyle & fashion company Trent will announce its earnings on Tuesday where the retailer is expected to report a net profit in a wide range between Rs 244 crore to Rs 462 crore in Q4FY25, according to estimates by four brokerages. The revenue from operations in the quarter under review is seen to grow around 29%, the estimates most conservative PAT figures have been given by Nuvama Institutional Equities while Equirus Securities has the most bullish estimates. While the former sees a 63% year-on-year decline in company's profit after tax (PAT), the former has estimated a 35% YoY of Axis Securities and Mirae Asset Sharekhan have also been taken into the revenue is expected to be in the range of Rs 4,079 crore and Rs 4,274 crore. Equirus has the most bullish company synonymous with brands like Zudio and Westside, will meet its store addition guidance while witnessing margin pressure due to product mix and an extended End-of-Season Sale (EOSS).Here's what brokerages recommend:Trent's core PAT is expected at Rs 244 crore, which could be a sharp decline of 63% YoY and 48% QoQ. Nuvama also expects Trent to report a revenue of Rs 4,092 crore for the quarter ended March 2025, marking a growth of 28.4% on a YoY basis. However, on a sequential basis, revenue declined by 9.8%, reflecting some slowdown compared to the December the operating front, Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) could come in at Rs 543 crore. This figure could be 14% higher than the same quarter last year, while going down 35% on a QoQ EBITDA margin for the quarter is pegged at 13.3%, which may be lower by 170 bps YoY and 520 bps sequentially.'Trent reported weak 28% growth for the quarter, and we estimate low single-digit LFL growth. This could be due to their strategy of increasing concentration in existing sub-markets. Store addition guidance has been met, with addition of 140 stores in Q4 and a total of 16/220 Westside/Zudio stores for the year. We anticipate some gross margin softness due to product mix and an extended End-of-Season Sale (EOSS), a first for Trent. Lower productivity is also expected to impact EBITDA margin,' Nuvama said in a remains its top has estimated a PAT of Rs 267 crore for the quarter ended March 2025, reflecting a sharp decline of 59.2% YoY and a sequential fall of 43.2% compared to the previous quarter on account of a one-time exceptional expense in the base quarter. The significant drop in PAT highlights profitability pressures despite strong revenue revenue for the quarter is expected to stand at Rs 4,079 crore, registering a healthy growth of 28% on a YoY basis but falling by 10% compared to the December 2024 the operational level, the company's EBITDA is pegged at Rs 599 crore. This marks an increase of 26% YoY while likely falling by 28.5% on a QoQ basis. Meanwhile the EBITDA margin for the quarter could be at 14.7%, down by 29 bps YoY and sharply lower by 379 bps on a QoQ contraction in margins indicates rising cost pressures or lower operating leverage during the quarter, despite higher annual revenues.'Healthy revenue growth is expected to continue on the back of store expansion. EBITDA margins are expected to increase on account of strong operating leverage,' this brokerage key monitorable would be demand outlook in metros/tier-2/3 towns ahead of festive season and store expansion Asset Sharekhan sees the company reporting an adjusted PAT of Rs 272 crore for the quarter ended March 2025, representing a marginal decline of 5.7% compared to the same quarter last net sales during the quarter is expected to rise sharply to Rs 4,079 crore, marking a 28% YoY expects the EBITDA margin at 14.8% in the quarter under review, compared to 15% in has a 'Buy' view on Trent for a price target Rs 6, expects a PAT of Rs 462 crore, reflecting a 35% YoY growth and a 9.2% QoQ rise. Meanwhile, the net sales during the quarter could be around Rs 4,274 crore, representing a 29% YoY growth and a 5.9% QoQ EBITDA of Rs 786 crore is seen in the January-March quarter rising by 26% YoY and 23% QoQ. The EBITDA margin for the quarter is seen at 18.4%, which may contract by 41 bps YoY and could improve 252 bps QoQ.'Trent should continue its outperformance versus the industry delivering 39% kind of growth in 4Q led by surprisingly higher Zudio Store additions in 4Q. Margins to remain slightly impacted due to higher opex,' it key monitorables will be Same Store Sales Growth (SSSG) and operating margins.(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
