Latest news with #RakshitRanjan
Time of India
a day ago
- Business
- Time of India
Amnish Aggarwal on Torrent Pharma plan to acquire JB Chemicals, Jio Finance surge & IT and shipping stocks
Live Events You Might Also Like: Rakshit Ranjan on sectors to focus on to geopolitically risk-proof your portfolio You Might Also Like: Torrent Pharma shares surge 4% after agreeing to acquire JB Chemicals for Rs 11,900 crore (You can now subscribe to our (You can now subscribe to our ETMarkets WhatsApp channel , Head-Research,, says Torrent Pharma 's plans to acquire JB Chemicals will be an expensive deal. The acquisition will strengthen Torrent's branded generics in India and overseas. It will also help in CDMO space. The deal is expected to increase margins in the long term. Synergies will likely emerge by the second half of acquisition is at around six-and-a-half times EV to sales and it is definitely not cheap, that is one. Secondly, if you look at the portfolio of Torrent and the portfolio of JB Chemicals, whether it is medicines like Rantac, Nicardia or some of the other plays which JB Chemicals offers, in the domestic markets, it is definitely a complimentary deal and it offers them more branded generics in India and overseas and strengthens them in the CDMO need to pay out Rs 12,000 crore and do not have that kind of money in the balance sheet. Plus, it is slightly complicated because they are acquiring some stake and making an open offer and then the merger is there. In the longer term, there is a scope to increase margins. In the longer term, it will play out to the benefit of Torrent Pharma. But yes, in the near term, I do not think there is anything which is very meaningful on the table in terms of any immediate traction to the stock the longer term, definitely, Torrent Pharma will gain from it, may not be in FIY26, because the debt will come on the balance sheet, but as you said, by FY27 second half, by when they want to get rid of the debt, the synergies will also start coming in and might push their margins up by 2% to 3%. So, in the longer term, it will add value to Torrent is very difficult to say because it is a very volatile stock. Earlier from close to Rs 200-220, it went all the way to Rs 340-350. In terms of business, there are not many material things happening. They are gradually building up and might be looking at mutual funds. Then they are looking at lending. But on a very fundamental basis, I would not be able to give any reasons why the stock price has shown an upward IT services, the commentaries are not likely to be very different from what we have seen in the past couple of quarters. There might be solitary cases here or there where they might give some indication of recovery. But what we are learning as of now is that there is no big change in commentary. In the near to medium term, at least for the next couple of quarters, we will not see any meaningful uptake it will depend upon various segments. Some of the companies in BFSI or AI-related, might see some sort of stability, but for ER&D and companies which are catering to auto related stuff in Europe, we will continue to see pressure building up. There is no big change there. Some of the niches will continue to do well, but in terms of commentary, we are not expecting anything drastic as far as IT services are acquisition is a positive because for Indian companies which are on the shipping side, whether commercial or defence, first of all, there is a huge runway of growth as we are not building enough ships – be it commercial ships or those for defence is also positive for a company like say Mazagon Dock which is into submarines and all sorts of ships. As far as the Sri Lankan acquisition is concerned, it will be primarily for the commercial wing because it would not be possible to extend the defence wing over all these shipping companies could be looking at expanding their production, particularly the commercial ship building side because India hardly makes anything and that too above the 10,000 DWT weight. I am not sure as of now if that particular shipyard has the capacity to build larger ships of more than 10,000 DWT or 20,000 DWT but if that happens, it will give Mazagon Dock a lot of fuel to accelerate growth because India wants to develop its ship building industry in a big it remains quite an expensive stock. It has run up quite sharply after the brief reaction which happened towards the Q3 of last year and from here on, in all these names, one will have to take a very long-term viewpoint of three to five years at least to make any very sizable returns.
Time of India
a day ago
- Business
- Time of India
Liquidity driving market; overweight on hotels, real estate & REIT: Venkatesh Balasubramaniam
Live Events You Might Also Like: Rakshit Ranjan on sectors to focus on to geopolitically risk-proof your portfolio (You can now subscribe to our (You can now subscribe to our ETMarkets WhatsApp channel , MD & Head of Research,, says despite real estate stocks trading above NAV, he favours DLF and REITs, attracted by potential interest rate declines boosting REIT yields . He is also overweight on hotels , citing limited investment and strong demand creating a favorable structural play. Leela Hotels and Chalet Hotels are specifically mentioned as preferred stocks. JM Financial is overweight on hotels, real estate, and REITs – all of which are outside the believe this is basically running on liquidity. Domestic flows have been very strong. The monthly SIP numbers are still very strong at almost 267 billion per month. Even though mutual funds have roughly 5% of their holdings in cash, every month when you get these holdings, when you get these flows, you need to deploy it, so that is one thing. Secondly, since March onwards, FII inflows have actually turned positive. So, March, April, May, and in June so far, FII flows have been positive. So, definitely this is running on are not that weak. Fundamentals are okay. The economic outlook is also quite good. But as valuations are not attractive – be it in largecaps, midcaps, or smallcaps – all are trading at one standard deviation or more above the mean. So, it is very tough to make a positive call based on valuations. Fundamentals are okay, outlook is okay, but at this point in time, whatever runup we are seeing is more because of are benchmarked to the Nifty and in the Nifty 50, there is no real estate stock. So, if we like any real estate stock, automatically we go overweight on real estate. Broadly, the real estate sector is not cheap. Most of the stocks are trading almost 15% to 20% above their NAV. Historically, trading bands are 15-20% below NAV. We are very selective when we come to stocks. We like DLF because it is trading on par. We also like the REIT names primarily because as interest rates come down, a lot of these REITs become very attractive. They are all trading at roughly around 7% yield and 10% growth. It is more of an interest rate kind of a play when it comes to estate, we like from an interest rate perspective, but it is not that we are positive on all real estate stocks, because some of them are expensive and we are aware that over the last couple of quarters and the next couple of quarters also are going to be a little bit on the softer to hotels, it has got nothing to do with Maha Kumbh. Over the last four to five years, hardly any investments have been done in the hotel sector. So, there is a lot of demand, but the supply is not adequate. We believe this is likely to continue over the next year, year-and-a-half or so. From that perspective, we like hotels as a structural play. Some of the stocks we like are recently listed Leela Hotels. We also like Chalet Hotels here. These are two names which we like. So, we are overweight on hotels, real estate, and REITs. Incidentally, none of them are a part of the Nifty.
Time of India
a day ago
- Business
- Time of India
Rakshit Ranjan on sectors to focus on to geopolitically risk-proof your portfolio
Rakshit Ranjan , Investment Management, Marcellus Investment Managers , says their portfolio's sectoral orientations currently favour healthcare, including hospitals, diagnostics, health insurance, and some pharmaceuticals, largely unaffected by geopolitical events. Select discretionary consumption areas are gaining from shifts from unorganized to organized sectors, alongside market share consolidation among top-tier companies. Changes in consumer wallet shares across categories represent broader macro trends, also demonstrating resilience to geopolitical risks. Let us begin with the market trajectory. The current year so far has been very volatile with a lot of unexpected events. We started off with the trade tariff thing which died down. Then, we had the geopolitical tension, Operation Sindoor. The international and other macros were not favouring our markets and there was a phase where the market was still directionless. But now the red flags on the geopolitical front have died down. What sense are you making out of the current market juncture in terms of market caps? Largecaps versus broad indices? Rakshit Ranjan: To begin with, it is very difficult to answer that question with a short-term perspective. There will always be events which are difficult to predict, correlations with fundamentals basis the event or share price movements basis the fundamentals and the event. So, I do not think we have an answer to this question from a short-term perspective. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Bargain Prices on Unsold Container Houses in Bulacan - Check Them Out! Shipping Container Homes | Search Ads Search Now Undo From a very long-term perspective, the economy on the whole is on a very solid footing – be it in terms of demographics, the consumption side, the investment side or the capex side from a long-term standpoint. Having said that, over the medium term, for the broader market there are a few risks that investors should be aware of. Risk number one is earnings growth, profit growth for broader indices. It tends to be very cyclical over long periods of time and it is coming off a cyclical high phase. FY21 to FY24 Nifty 50 earnings growth was in the mid-20s CAGR and that is a very high run rate. We have already seen a significant moderation in FY25 where it was mid to high single digits at best earnings growth for Nifty. So, there is a risk that we might be entering a bit of a mean reversion after a cyclically high phase of earnings growth from a medium-term perspective. There is also a risk around valuations for the broader market at about 20-22 times one year forward earnings for Nifty 50. So, combine these two, as long as investors manage to stay away from these kinds of risks or downside potentials, the long-term outlook remains solid and we at Marcellus are very much bottom-up stock pickers, benefiting from such an environment because quality delivers when tailwinds go away for the broader economy. Live Events You Might Also Like: Goldman Sachs getting incrementally positive on India; earnings expected to go up: Sunil Koul Everybody is waiting for 9th July, the Trump tariff deadline. You have mentioned insulation from geopolitical risks, the kind of portfolio with less exposure there. Which are these sectors or stocks you have focused on which will see a limited impact of the tariffs? Rakshit Ranjan: Our sectoral orientations in the portfolio include healthcare at the moment. Healthcare as a broader theme which includes hospitals, diagnostics, health insurance plays, and a little bit of pharma. Here we do not see connections with geopolitical events in a meaningful way. Secondly, there are pockets of discretionary consumption which are benefiting from unorganised to organised shifts which are also at the cusp of market share consolidation for the better quality players. In the last five-six years, there have also been shifts in wallet shares for consumers, for households in terms of categories. These are broader macro themes, which are not exposed to geopolitical risks and in that respect, the bulk of our portfolio is not waiting for 9th of July. In terms of the risk-reward ratio, how are you trying to mitigate the risk factor in your portfolios? A lot of experts are looking at time correction in the broader market, specifically in the midcaps and smallcaps. We have been seeing broader markets outperform quite a few sessions but here we are talking about a long-term portfolio. Are you waiting for a time correction in certain pockets? What is your expectation on the first quarter results now? Rakshit Ranjan : First and foremost, before we come to valuations, what we want in the portfolio is classical quality attributes coming up in a bottom-up stock picking approach. Now, the classical quality attributes are moats, competitive advantages, and capital allocation which is in a way reinvestment of cash generated due to high quality moats and all of this being driven by a high quality management team. This approach to quality becomes even more important when in the external environment, tailwinds are not as strong because then it is not a broad-based market, it is a very narrow 'the winner takes all' approach; so that is the first piece. When it comes to valuations, we are not waiting for dips. We are fully invested in consistent compounders because we are hunting for two types of plays on valuation grounds. You Might Also Like: Where should you pick stocks within strong structural trends? Dhiraj Agarwal explains First and foremost, areas where quality is yet to be discovered and there are a few such companies in certain sectors where either because over the last three-four years we had a far more broad-based rally, quality was not adequately appreciated in the valuations or there might be a new disruptive high quality business emerging where the quality of the business is yet to be appreciated. Unfortunately, that is not a wide enough playground for us. You Might Also Like: Equity investing not about overnight returns: Puneet Sharma on geopolitical issues and 2025 sector picks
Economic Times
a day ago
- Business
- Economic Times
Rakshit Ranjan on sectors to focus on to geopolitically risk-proof your portfolio
Rakshit Ranjan, Investment Management, Marcellus Investment Managers, says their portfolio's sectoral orientations currently favour healthcare, including hospitals, diagnostics, health insurance, and some pharmaceuticals, largely unaffected by geopolitical events. Select discretionary consumption areas are gaining from shifts from unorganized to organized sectors, alongside market share consolidation among top-tier companies. Changes in consumer wallet shares across categories represent broader macro trends, also demonstrating resilience to geopolitical risks. ADVERTISEMENT Let us begin with the market trajectory. The current year so far has been very volatile with a lot of unexpected events. We started off with the trade tariff thing which died down. Then, we had the geopolitical tension, Operation Sindoor. The international and other macros were not favouring our markets and there was a phase where the market was still directionless. But now the red flags on the geopolitical front have died down. What sense are you making out of the current market juncture in terms of market caps? Largecaps versus broad indices? Rakshit Ranjan: To begin with, it is very difficult to answer that question with a short-term perspective. There will always be events which are difficult to predict, correlations with fundamentals basis the event or share price movements basis the fundamentals and the event. So, I do not think we have an answer to this question from a short-term perspective. From a very long-term perspective, the economy on the whole is on a very solid footing – be it in terms of demographics, the consumption side, the investment side or the capex side from a long-term standpoint. Having said that, over the medium term, for the broader market there are a few risks that investors should be aware of. Risk number one is earnings growth, profit growth for broader indices. It tends to be very cyclical over long periods of time and it is coming off a cyclical high phase. FY21 to FY24 Nifty 50 earnings growth was in the mid-20s CAGR and that is a very high run rate. We have already seen a significant moderation in FY25 where it was mid to high single digits at best earnings growth for Nifty. So, there is a risk that we might be entering a bit of a mean reversion after a cyclically high phase of earnings growth from a medium-term perspective. There is also a risk around valuations for the broader market at about 20-22 times one year forward earnings for Nifty 50. So, combine these two, as long as investors manage to stay away from these kinds of risks or downside potentials, the long-term outlook remains solid and we at Marcellus are very much bottom-up stock pickers, benefiting from such an environment because quality delivers when tailwinds go away for the broader economy. Everybody is waiting for 9th July, the Trump tariff deadline. You have mentioned insulation from geopolitical risks, the kind of portfolio with less exposure there. Which are these sectors or stocks you have focused on which will see a limited impact of the tariffs? Rakshit Ranjan: Our sectoral orientations in the portfolio include healthcare at the moment. Healthcare as a broader theme which includes hospitals, diagnostics, health insurance plays, and a little bit of pharma. Here we do not see connections with geopolitical events in a meaningful way. ADVERTISEMENT Secondly, there are pockets of discretionary consumption which are benefiting from unorganised to organised shifts which are also at the cusp of market share consolidation for the better quality players. In the last five-six years, there have also been shifts in wallet shares for consumers, for households in terms of categories. These are broader macro themes, which are not exposed to geopolitical risks and in that respect, the bulk of our portfolio is not waiting for 9th of July. In terms of the risk-reward ratio, how are you trying to mitigate the risk factor in your portfolios? A lot of experts are looking at time correction in the broader market, specifically in the midcaps and smallcaps. We have been seeing broader markets outperform quite a few sessions but here we are talking about a long-term portfolio. Are you waiting for a time correction in certain pockets? What is your expectation on the first quarter results now? Rakshit Ranjan: First and foremost, before we come to valuations, what we want in the portfolio is classical quality attributes coming up in a bottom-up stock picking approach. Now, the classical quality attributes are moats, competitive advantages, and capital allocation which is in a way reinvestment of cash generated due to high quality moats and all of this being driven by a high quality management team. ADVERTISEMENT This approach to quality becomes even more important when in the external environment, tailwinds are not as strong because then it is not a broad-based market, it is a very narrow 'the winner takes all' approach; so that is the first piece. When it comes to valuations, we are not waiting for dips. We are fully invested in consistent compounders because we are hunting for two types of plays on valuation grounds. First and foremost, areas where quality is yet to be discovered and there are a few such companies in certain sectors where either because over the last three-four years we had a far more broad-based rally, quality was not adequately appreciated in the valuations or there might be a new disruptive high quality business emerging where the quality of the business is yet to be appreciated. Unfortunately, that is not a wide enough playground for us. ADVERTISEMENT (You can now subscribe to our ETMarkets WhatsApp channel)
