Latest news with #Khemani
Time of India
16-07-2025
- Business
- Time of India
Mutual funds dump Rs 1,700 crore in 9 defence stocks. Too expensive to buy or smart exit?
The multi-billion-dollar boom in defence stocks is showing signs of a slowdown, as mutual funds offloaded a staggering Rs 1,700 crore across nine defence stocks last month — a signal that even the smartest money managers believe valuations have turned dangerously expensive after the post-Operation Sindoor rally. All the positive news around increased defence spending following Operation Sindoor , coupled with NATO's defence spending targets creating a double-barrelled opportunity in both domestic and export markets, has now pushed valuations into uncomfortable territory. This has prompted institutional investors to hit the exit button. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Gold Is Surging in 2025 — Smart Traders Are Already In IC Markets Learn More Undo The selling spree was broad-based, with Solar Industries bearing the brunt with outflows of Rs 952 crore, followed by Zen Technologies at Rs 192 crore and Bharat Forge at Rs 165 crore. GRSE saw selling worth Rs 153 crore, while Cochin Shipyard faced outflows of Rs 120 crore, and Mazagon Dock witnessed exits of Rs 96 crore, according to estimates by Prime Database. Total gross selling stood at approximately Rs 1,713 crore. In stark contrast, buying was limited to a meagre Rs 100 crore across seven stocks, including Bharat Dynamics, Unimech, and BEL. Also Read | Defence stocks retreat after up to 84% rally in 3 months. Is it time to book profits or hold? Live Events The sell-off has been reflected in share prices, with the Nifty India Defence Index falling around 4% over the past month. GRSE, Astra Microwave, and Cochin Shipyard have reported double-digit losses, while Solar Industries is down 9% and HAL has shed around 3%, underscoring the broad-based nature of the correction. Valuation concerns are now front and center, as even the sector's most vocal cheerleaders are beginning to pump the brakes. 'We have been avoiding a lot of defence plays... those are the places where we are finding a little bit of overenthusiasm in the marketplace and among market participants,' said Vikas Khemani of Carnelian Asset Management, highlighting the frothy sentiment gripping the sector. Khemani's caution reflects a broader shift in institutional thinking. "It is not that tomorrow if we find an interesting company where the risk-reward is there, we will be buying those segments also, so I am not making a broad judgment that we will not do anything, but it is just that those are the places where we are finding a little bit of overenthusiasm in the marketplace and market participants," he added, suggesting that selectivity, not blanket avoidance, is the new mantra. The warning signs are flashing red across the sector, with execution risks emerging as the new worry. Ambareesh Baliga sounded the alarm on what many investors are overlooking: "In fact, I am finding the valuations are a bit expensive at this point of time... the issue would be on delivery, on execution, which not too many people are talking about. They have got huge orders, but how will they execute? I think that is the big issue." Baliga's concerns are particularly acute for the medium term. "The issue is mostly on the defence side of the market because quite a few of them have got order books full for the next six-eight years, and if they are not able to increase their capacity and deliver, that is where the issue would happen," he warned. Baliga pointed to HAL as an early warning: "We have already seen that happening in HAL to some extent, that we should see across the other companies." This suggests that the order book visibility that investors have been celebrating could become a liability if companies can't scale up operations to meet demand. The recent downgrade of BDL by Motilal Oswal further weighed on sentiment, serving as a wake-up call for investors who had been riding the momentum. The brokerage initiated coverage on Bharat Dynamics with a 'neutral' rating and Rs 1,900 target price, nearly 4% below its then market value, citing "lofty valuations." While the brokerage applauded BDL's strong order pipeline and export growth, it noted that the stock's sharp run-up leaves "little room for near-term upside." The brokerage stated it would "look for lower price points to enter the stock," essentially telling investors to wait for a correction before jumping in. This cautious stance is becoming more common among institutional investors. Even seasoned bulls are turning cautious. Harsha Upadhyaya, CIO-Equity at Kotak AMC, who has been a long-term believer in the defence story, admitted: "While valuations are on the higher side, we are not increasing our position at this point of time... however, in the short term yes, the valuations are on the higher side so one needs to have a little bit of caution." Upadhyaya's comments are particularly significant because Kotak AMC has been building defence positions since the government started focusing on indigenization. "We have been very positive on defence for quite some time now, and we started building our positions when the government started to focus on indigenization, and also larger investments continue to happen into defence," he said, making his current caution all the more noteworthy. The easing of tensions in the Middle East, particularly between Israel and Iran, had already begun to dampen sentiment, as geopolitical risks that had supported defence stocks started to recede. Despite the near-term turbulence, the structural story remains compelling for those willing to look beyond the current valuation concerns. The macro backdrop, including NATO's 5% defence spending target by 2035 and recent Defence Acquisition Council approvals worth Rs 1 trillion, continues to provide a solid foundation for long-term growth. Nuvama remains bullish on the sector's long-term prospects, particularly favoring the Defence Electronics segment: "We prefer the Defence Electronics segment, which shall grow 2–3x of defence budget outlay (7–8% CAGR over next five years) powered by the dual engines of ongoing modernisation and higher localisation content for larger programs in the pipeline for Air Force and Navy." Their top picks in the space are BEL and Data Patterns. Also Read | Defence stocks decline as investors reassess valuations amid profit booking Nuvama highlighted that "over the past three decades, India's defence spending growth rate has been among the highest (~8%) across global defence superpowers due to import embargoes and growing export potential." This translates to an estimated $130 billion opportunity over the next five to seven years. Immediate catalysts remain strong despite valuation concerns. Following Operation Sindoor, the government has approved Rs 400 billion for emergency procurement to fast-track military purchases, with the Ministry of Defence recently clearing emergency procurement worth Rs 20 billion for various platforms. Additionally, the Defence Acquisition Council has approved Acceptance of Necessity (AoN) for 10 proposals amounting to Rs 1,050 billion. ICICI Securities expects robust order inflows in FY26, with most companies under its coverage guiding for revenue growth of over 15%. Some, like BDL, Solar Industries, and Azad Engineering, have projected even higher growth in the range of 25–30%. Among its top picks, ICICI Securities lists Solar Industries, Astra Microwave, and Azad Engineering in the private space. Among DPSUs, it prefers HAL, BEL, and Midhani. However, the valuation challenge remains very real. Nuvama noted that 'Indian defence stocks across the spectrum have re-rated explosively over the past two to three years on the back of improved visibility,' with 'most private defence stocks now trading at a premium to DPSUs, given their higher earnings CAGR and superior return profile.' For retail investors caught in the crossfire, Aamar Deo Singh, Sr. VP – Research at Angel One, offered practical advice: 'Defence stocks have witnessed a spectacular rally, and post the India-Pakistan conflict, this sector has once again taken off, with some stocks hitting record highs and trading at expensive valuations. So, it would be wise not to invest all at once in this sector. Adopting an SIP approach over the long term would deliver better results.' As the dust settles, the defence sector stands at a crossroads — caught between compelling long-term growth drivers and stretched near-term valuations that have even the most bullish investors hitting the pause button.
Yahoo
13-06-2025
- Business
- Yahoo
This startup is redesigning Bitcoin mining for a greener future
This startup is redesigning Bitcoin mining for a greener future originally appeared on TheStreet. In a market dominated by high-wattage rigs and heat-choked data centers, Auradine is taking a different path—designing Bitcoin mining infrastructure with energy efficiency, environmental adaptability, and long-term sustainability at its core. Founded three years ago, the Silicon Valley startup is rethinking how—and where—Bitcoin gets mined, with an eye toward both technical performance and ecological impact. 'To really effectively mine Bitcoin, you need very specialized, leading-edge silicon technology,' said Auradine CEO and co-founder Rajiv Khemani in an interview with TheStreet Roundtable's Alp Gasimov. 'But just as important is how responsibly that energy is used.' While traditional mining operations rely on steady, often high-cost energy consumption, Auradine's approach is engineered for flexibility. Its miners can scale power use up or down within seconds, helping to absorb surplus energy when available—and back off when the grid is under strain. 'All of these energy sources—whether coal, natural gas, solar, hydro—they have ups and downs,' says Khemani. 'Our systems can adapt in real-time, making mining much more energy-aware.' Auradine's rigs are also built for the real world, not just sterile server rooms. Many operate in rugged, remote environments, with no air conditioning, no advanced cooling, and very little margin for error. 'You have to build very ruggedized systems,' Khemani explains. 'There can be a lot of dust and heat. These miners have to be resilient.' But at its heart, Auradine's mission is about more than hardware. It's about giving Bitcoin mining a cleaner, smarter, and more sustainable foundation. 'Bitcoin consumes energy—for a very good reason,' says Khemani. 'It secures the protocol, validates transactions, and provides decentralized assurance. What we're doing is making that process smarter, more responsive, and more responsible.' With mining under increasing scrutiny and energy efficiency a growing concern, Auradine isn't just selling miners. It's making the case for a new model of digital infrastructure—one that's not just powerful, but adaptive and aligned with a changing world. This startup is redesigning Bitcoin mining for a greener future first appeared on TheStreet on Jun 12, 2025 This story was originally reported by TheStreet on Jun 12, 2025, where it first appeared. Sign in to access your portfolio
Time of India
13-06-2025
- Business
- Time of India
India could attract $1.5 trillion FII inflows over the next decade: Swati Khemani
In an exclusive interaction with ETMarkets Smart Talk, Swati Khemani , Founder & CEO of Carnelian Asset Management and Advisors, shared her optimistic outlook on the Indian equity markets . Despite recent bouts of volatility and global uncertainty, she believes India remains one of the most compelling long-term investment stories globally. Backed by solid macro fundamentals, rising domestic participation, and India's underweight status among global investors, Khemani estimates that the country could attract foreign institutional inflows worth $1.5 trillion over the next 5–10 years. She also highlighted key sectoral opportunities, her views on the RBI 's rate trajectory, and why staggered investing is the right strategy in the current environment. Edited Excerpts – Q) Thanks for taking the time out. After a stable May, the market turned volatile in June. 1H2025 has been robust with Nifty closing in the red in just 2 out of the last 5 months; however, we still underperformed EM peers in 2025. How do you see markets in the medium-to-long term? by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Do You Remember Her? You Better Sit Down Before You See Her Today Undo A) Short-term market fluctuations are normal and not directly tied to global peers. Over the medium to long term, Indian markets have consistently outperformed, driven by strong fundamentals like rising GDP, demographic advantages, and reforms. India's 5 structural macros are rock solid - Current Account deficit is < 1%, fiscal deficit is well within control, banking asset quality is robust with NPA being less than 0.5%, lesser leverage - debt to GDP is at 78% which is one of the lowest in the world & well managed inflation. We don't see any structural challenges within our economy. We have been saying and continue to say that India is the best wealth creation story around the globe and a short-term approach/mindset will only be detrimental to investor outcome. Live Events Q) What is your take on the outcome of the MPC meeting in June. What is the trajectory you foresee for rates in 2025? A) RBI has done a fantastic job over the last 6 months of cutting interest rates and infusing liquidity through OMOs. The RBI's June MPC meeting also continued its growth-oriented approach, cutting the repo rate and CRR to boost liquidity and lower borrowing costs. These measures support economic growth amid global uncertainty. For 2025, we expect gradual rate cuts, potentially by another 50-75 bps, contingent on inflation and global conditions, fostering a pro-growth environment. Q) Which themes look attractive to you for the next 6-12 months amid trade war ears, strong dollar and possible scenario of falling interest rates? A) We continue to be bullish on BFSI due to falling rates and rising credit demand, Manufacturing (pickup in private capex), pharma (CDMO) for global supply chain shifts, and specialty chemicals amid trade realignments. These sectors are resilient to trade war risks, offering strong growth over the next few years. Q) The IMD has predicted a normal monsoon in 2025 – do you see this supporting consumption stocks/auto stocks? A) A good monsoon in general is good for the economy but benefits the rural economy even better. This supports auto and consumption stocks, particularly in rural-focused segments, enhancing their growth potential over the next 6-12 months. Q) How do you see flows – FIIs have recently turned positive on Indian markets, while DIIs have supported the rally. Do you see a reversal of flows into Indian markets? A) FII inflows depend on global interest rate clarity. As Fed uncertainty eases, India's underweight status among global investors will attract significant capital, potentially USD 1.5 tn over 5-10 years; given our current USD 5tn market cap, this will be a significant amount. Domestic flow will also remain strong, with household equity exposure likely rising from 5% to 15% over the next decade, ensuring sustained market support. Q) Is there any theme or sector where one should avoid fresh investments in the current environment? A) In any environment one must stay away from themes/sectors with excessive euphoria – currently one must avoid overvalued renewables, defence, railways, select capital goods etc., where valuations outpace fundamentals. Focus on sectors with sustainable growth and reasonable valuations. Q) Have you seen the recent trend of block deals taking place? Is that largely promoter selling? If yes, is that a worrying sign for stocks or is it business as usual? A) This is again a step in direction towards segregation of ownership and management. Block deals, often involving promoter or PE sales, reflect India's maturing market, with ownership and management increasingly separating, similar to developed markets. High promoter holdings (60-70%) are normalizing, and sales often fund family offices, redeploying capital into markets. This trend, ongoing since 2020, is not inherently negative but requires monitoring for company-specific issues. Investors should assess the rationale behind sales without assuming broader market concerns. Q) What is your call on the small & midcap space? Are they still trading at expensive valuations, and are large caps still a better play? A) In a transforming economy, small and midcaps (SMIDs) often trade at premium valuations given their high growth. One must understand individual stocks to determine the investment. Our SMID portfolio remains attractive, with expected earnings growth of 20-25% over the next 2-3 years. Large caps offer stability but lower growth, making SMIDs a better play for risk-tolerant investors in bull markets. Q) Many investors who stayed on the sidelines in the beginning of 2025 and are now experiencing FOMO as markets have seen a significant rally, but it is still down by about 5% from highs. Should they adopt staggered buying, keep cash or do a lump sum investment? A) Investors experiencing FOMO after the 2025 rally should opt for staggered buying over 3-4 months, given potential volatility from geopolitical tensions, US policy shifts, and global slowdown. This approach mitigates risks while capturing opportunities in a consolidating market. Q) COVID cases are rising. Can this fuel hospital stocks, or should investors keep an eye on that theme? What are your views? A) Rising COVID cases are unlikely to significantly impact markets, as healthcare systems are better prepared. Hospital stocks, already priced for steady demand, offer limited upside from this trend. Investors should focus on broader healthcare themes like diagnostics instead.
Time of India
04-05-2025
- Business
- Time of India
Technology, quality & strategy: Experts chart Assam tea's future at Dibrugarh meet
Dibrugarh: Former union minister and Assam Chah Mazdoor Sangha (ACMS) president Paban Singh Ghatowar has urged stakeholders to come together to rejuvenate Assam's tea sector. He made this appeal at the parishad's annual general conference in Dibrugarh on Saturday. Celebrating 80 years of BCP's service since its founding in 1944, the event brought industry leaders together to address critical challenges. BCP currently represents 103 members across Assam, including tea estates and bought leaf factories. "The tea industry, established by the British two centuries ago, has long been the backbone of Assam's economy, yet today it faces unprecedented challenges," Ghatowar said as the event's chief guest. "We need a holistic approach — planters, workers, policymakers, and technologists must collaborate. Govt support and collective action are essential to restoring Assam tea 's global stature," he added. Former Tea Board of India chairperson Prabhat Bezbaruah stressed quality as the industry's lifeline. "A more sympathetic approach from the Central government would help, but ultimately, our survival depends on meeting global standards. If we want Assam tea to thrive, quality must be our top priority," he said. Tea veteran and industrialist Manoj Jalan underscored technological advancements as crucial for progress. "The future of Assam tea lies in smart agriculture — AI-driven pest control, yield prediction, and precision farming. We can't afford to lag behind in technology adoption. These innovations will optimize production, quality control, and market responsiveness," Jalan said. Outgoing BCP chairperson Nalin Khemani highlighted the need for adaptation in his farewell address. "To secure the industry's future, sustainability and evolution must go hand in hand. Challenges such as shifting consumer preferences, climate change, stagnant demand, and overproduction require urgent action," he said. Khemani proposed strategic land diversification as a solution. "We should repurpose at least 25% of tea-growing land for alternative uses, allowing the remaining 75% to flourish while safeguarding the livelihoods of our million-strong workforce," he said. The conference also witnessed a change in leadership, with Sarvesh Saharia taking over as BCP Chairman for the 2025-2027 session, succeeding Khemani. Industry stakeholders expressed confidence that with the right strategies and unified efforts, Assam tea can reclaim its global prominence.
