Latest news with #ICICISecuritiesLtd
Mint
5 hours ago
- Business
- Mint
Chart Beat: Indian paint industry revenues drop for the first time in two decades. Rebound ahead?
Revenues of the Indian paint industry declined by 2% year-on-year in FY25, marking the first drop in two decades, showed data sourced from ICICI Securities Ltd. The decline is especially concerning as the the industry grew even during the covid pandemic. A number of headwinds were responsible for the industry's feeble growth in FY25, including a general widespread slowdown in consumption and increased competition from the entry of Birla Opus. In its March quarter (Q4FY25) earnings call, Grasim Industries Ltd's management said the company's organised decorative paints presence ended the quarter with a more than 10% revenue market share, as per its internal estimates, if the revenues of Birla Opus and Birla White Putty were combined. Also read: Intense competition hurts paint companies' profitability; more pain in the offing Weak pricing growing also hurt the industry's growth last year as there were negligible price hikes coupled with higher trade schemes and offers. Consumer downtrading and urban demand slowdown were other challanges the industry faced last year. Where do we go from here? 'The creation of favourable base results in strong growth for the paint industry in the following two years. This pattern was visible in FY16-19 (two weak years followed by two strong years) as well as in FY20-23 (two weak years followed by two strong years)," said ICICI Securities' analysts in a report on 20 June. The broking firm defines a weak year as industry revenue growth of less than 5% and strong year as higher than 12% growth. 'Considering there was weak revenue growth in FY24 and FY25, we believe the industry is ripe for revival in revenue growth in FY26-27," it added. Also read | We are in the business of beautification, not just paint: Birla Opus Paints' Inderpreet Singh While that is encouraging, the recovery could well be gradual as demand challenges persist. Since paint demand is discretionary, consumers may well postpone their purchases. The early onset of monsoons this year means prospects for the first half of FY26 don't appear bright. Together, these factors could test the patience of investors in paint stocks. Shares of India's largest decorative paints company Asian Paints Ltd are down about 22% over the past year. In the near-term, all eyes will be on the pace of the recovery in the second half of FY26. Also read: Analysts and investors have soured on Asian Paints. Can it prove them wrong?
Time of India
a day ago
- Business
- Time of India
Kalpataru sets IPO price band at ₹387-414 per share
NEW DELHI: Real estate developer Kalpataru Ltd on Thursday fixed a price band of Rs 387 to Rs 414 per share for its Rs 1,590 crore Initial Public Offering (IPO). The initial share sale will open for public subscription on June 24 and conclude on June 26. The bidding for anchor investors will open on June 23, the company announced. The company's IPO is entirely a fresh issue of equity shares worth Rs 1,590 crore with no Offer For Sale (OFS) component. At the upper end of the price band, the company is valued around Rs 8,500 crore, brokerage houses said. The Mumbai-based company proposes to utilise funds for the payment of debt and for general corporate purposes. Kalpataru Ltd is a prominent real estate developer in the Mumbai Metropolitan Region (MMR) in Maharashtra and is present across all micro-markets in the MMR. While a majority of the company's projects are located in the MMR and Pune (Maharashtra), it also has projects in Hyderabad (Telangana) and Noida (Uttar Pradesh). The company focuses on the development of luxury, premium, and mid-income residential, commercial, and retail projects, integrated townships, lifestyle gated communities, and redevelopments. Kalpataru Ltd is a part of the Kalpataru Group , which has a multi-national presence and has operations in EPC contracting for power transmission and distribution, oil and gas, railways, civil infrastructure projects, warehousing and logistics, and facility management. The company announced that 75 per cent of the offer size has been reserved for qualified institutional buyers, 15 per cent for non-institutional investors and the remaining 10 per cent for retail investors. Further, investors can bid for a minimum of 36 shares and in multiple thereof. ICICI Securities Ltd, JM Financial Ltd and Nomura Financial Advisory and Securities (India) Private Ltd are the book running lead managers to the issue. Shares of the company are expected to list on July 1 on the BSE and NSE.
Mint
09-05-2025
- Business
- Mint
What higher gold prices have meant for Titan's Q4 performance
Gold prices are flirting with the ₹100,000 per 10gm mark, making many Indian consumers rethink their jewellery purchases, a trend that could impact retailers like Titan Co. Ltd. In its March quarter (Q4FY25) earnings call, the management noted that consumer sentiment has been particularly affected in the sub- ₹50,000 price band, especially for gold items, with some impact seen in studded jewellery as well. One reason is that as gold prices rise, some products previously priced under ₹50,000 shift to a higher bracket. Against this backdrop, the company expects 'more and more customers to be open to lower caratage, simply because the price point has become quite a bit." In the higher price bands, some consumers are adjusting by opting for simpler products. In other words, while they're still purchasing gold at a set value, they're opting for items with lower making charges. Overall, consumers still want gold, but within their budgets; and are looking for solutions such as lightweight or lower-carat jewellery, along with possibly lower making charges, Titan said. Read this | Titan faces pressure in solitaire Rising gold prices in Q4FY25 and FY25 have continued to impact Titan's overall product mix, resulting in about 300 basis points (bps) lower studded jewellery share for the quarter and about 190bps lower share for the year. Elevated gold prices and consumer preferences last quarter meant higher coin growth, impacting the product mix and margins. Still, Titan's margin performance in Q4 was encouraging, aided by relatively better overheads management and strong revenue growth. The company's jewellery Ebit (earnings before interest and tax) margin contracted just 25 basis points year-on-year to 11.9% last quarter. Q4 jewellery Ebit growth was 22% to ₹1,331 crore. 'Despite rise in gold price and heightened competitive intensity, Titan is showing early signs of margin stability," said analysts from ICICI Securities Ltd in a report dated 9 May, adding, 'In our view, jewellery margin has bottomed out and should see gradual improvement going ahead." Titan's standalone Q4 jewellery revenue, excluding bullion sales, were up 25% year-on-year at ₹11,232 crore, underpinned by about 27% growth in plain gold jewellery and about 64% rise in gold coins. The growth in gold jewellery segment was primarily driven by ticket size growth, while both studded and gold coin segments saw rising buyer numbers. Read this | As gold prices hit record high, Tanishq rethinks wedding jewellery strategy Titan's second key business, watches and wearables, performed well, posting a 20% revenue growth to ₹1,126 crore. This was driven by an 18% increase in domestic analogue watches and robust double-digit growth in the Helios channel, which features premium Titan and international brands. As a result, the watch Ebit margin expanded by 330 bps to 11.8%. Overall, Titan's standalone Q4 operating revenue and Ebitda grew 20% and 30%, respectively, reaching ₹13,477 crore and ₹1,438 crore. The market responded positively to these results, driving Titan's stock up by around 4% on Friday, even as the Nifty 50 fell 1%. Looking ahead, Titan targets double-digit revenue growth in FY26, though sustained high gold prices could pose short-term challenges. 'We cut our FY26 earnings per share (EPS) estimates by about 1% due to higher interest and depreciation expense, while we increase FY27 EPS estimates by about 2% led by improved Ebitda margin and expected reduction in interest expenses on lower debt and GML (gold metal loan) rate normalization," said analysts from JM Financial Institutional Securities Ltd. Also read | Mint Primer: Will gold soon touch ₹1 lakh/10gm? The broking firm has increased its price-to-earnings multiple from 55x (earlier) to 57x led by stability in margins; and 15%, 27% and 33% compound annual growth rate in revenue, Ebitda and net profit over FY25-27. JM's target price is ₹3,725 apiece, while the stock now trades at about ₹3,505. Investors should bear in mind that consistently elevated or rising gold prices may dampen volume-led gains in the near-to-medium term, particularly if competition remains high.
