Latest news with #SudipBandyopadhyay
Economic Times
3 days ago
- Business
- Economic Times
Result season was better than expected; BFSI beneficiary on multiple fronts: Krishna Sanghavi
Tired of too many ads? Remove Ads Also Read: Sudip Bandyopadhyay flags valuation risks in defence stocks after Mazagon Dock miss Tired of too many ads? Remove Ads , Chief Investment Officer – Equity,, says Indian companies reported better-than-expected earnings. Growth is spread across various sectors. Energy companies saw a combined earnings growth of 7-8%. BFSI and commodity sectors performed well. Divergence exists within sectors, with some companies growing rapidly. BFSI benefits from double-digit nominal GDP growth and strong credit demand. Increased domestic savings are boosting capital markets and related businesses in clarity is something not only India but a lot of global economies and market participants are awaiting. That will clearly help. Maybe it lays down a nice road map for India to further increase its manufacturing capabilities in terms of ability to supply from here to global markets, mainly the US. Let us not forget the US is the largest consumer in the world, and to an extent, any comfort, any small window opening up for Indian players to offer their products to US customers can clearly there might be some challenges on the tariff front. On the reverse side, some Indian industries might have some incremental competition coming up from reduced tariffs, if at all. So tariff is clearly one part and the other part remains how global capital market flows play out especially with FPIs moving money across markets, whether you call it developed markets or emerging markets on one front and within those DMs or EMs, how each country shapes up on valuation/incremental growth on the growth part, yes, India is placed nicely with 6.5% GDP growth rate for FY25. It is more likely to be in a similar range for FY26 based on current estimates. A nice double digit nominal growth rate on the back of real GDP shows the economy is broadly intact and all we need is some sort of clarity, maybe a little bit more are right, the result season was better than expected and the muted expectations clearly help in judging the output as better or maybe worse. For a change, we are having a better results season and the nice part is really well spread across. In fact, if you look at Energy index, there is 7-8% earning growth as a combined basket and profits is broadly spread across BFSI as well as commodity aggregate basket of oil and gas, metal, cement on one side or the resource consumers which is the entire non-BFSI, non-commodity piece, on the interesting observation from the sectoral mix is that it is quite divergent. Within the same sector, some companies are growing at 15-20% and some are really lagging. So, that is a company or a stock specific earning trajectory always remains relevant in Indian markets because there are a large number of companies to evaluate and the economy is doing what it is doing. So, always find some winners, some people leading the economy and the earning BFSI stands out as a nice beneficiary on multiple fronts. The core hypothesis remains intact as long as we have nominal GDP growth in double digits, the lending piece in place, credit demand in place and lenders also benefit. India is generating far more income and a lot of this income is available for savings. We also have an advantage for capital account convertibility which allows this money to be retained in India for domestic savings, so that helps the capital market piece, maybe the asset management company, the broking businesses, wealth management business because finally, that money comes back to Indian financial markets in whichever shape and form for BFSI is some sort of a beneficiary on this sectoral front.
Economic Times
5 days ago
- Business
- Economic Times
Sudip Bandyopadhyay flags valuation risks in defence stocks after Mazagon Dock miss
"Look at companies like UltraTech Cement. They have performed very well, much better than market expectations. Yes, monsoon is not a time for cement, but in spite of that market is appreciating the performance of some of these large companies," says Sudip Bandyopadhyay, Group Chairman, Inditrade Capital. ADVERTISEMENT Give us a sense of what you have made of the earning season gone by. Now that has finally come to an end for us and when I take a look at the earnings scorecard, you have only seven Nifty companies so far that have performed below earnings estimates at least compared to the ET Now estimates with 13 above, 20 in line, and 9 mixed coming in. So, it has not been all that bad like the street was estimating before the beginning of the season. Give us a roundup on what you think has happened when it comes to the earnings and your takes on that. Sudip Bandyopadhyay: Well, you are absolutely right, compared to Q3, Q4 earnings were much-much better and as you rightly said, this was much better than even what was being expected. So, we should take note of the fact that companies have performed by and large better than market expectations. Let us look at cement. This is one sector which has performed uniformly well. Look at some of the FMCG companies, they have performed well. Some of the construction and engineering companies, they have done well. And also, I would say if you want to specify companies, look at how some of the other names in the building material and textiles, even technology, some of the technology companies have performed better than what was being expected. So, by and large, it has been a good set of numbers. Amongst the recently announced numbers, some of the defence companies have disappointed and we have been saying for quite some time that the defence sector valuation is at such level that margin of error is very-very limited. So, a Mazagon Dock slipping on margin definitely will attract negative attention of the market and that is what getting played out now. Q4 numbers of company like a Mazagon Dock was not good, it was a darling of the market. On the other hand, look at the wind energy company Suzlon, they have performed much better than what was being expected. The management commentary was very bullish and very positive. So, market has been rewarding it. Look at companies like UltraTech Cement. They have performed very well, much better than market expectations. Yes, monsoon is not a time for cement, but in spite of that market is appreciating the performance of some of these large companies. I was coming to you for this because Mazagon Dock reported its quarter four numbers and, of course, the fall in the stock price post the results. I wanted to ask, is really the party over for all the defence companies right now because they had run up quite a bit and, of course, after operation Sindoor they were running up on very high valuations and now that the results have been a disappointment, is the party really over in the defence space? Sudip Bandyopadhyay: Well, the party was carrying on for much more than what was warranted. You see, the whole issue is the valuation. There is absolutely no doubt in the fact that some of these companies are very good companies and there is absolutely no problem in they are gaining in more and more orders, the order book is full, and they will keep getting orders. The challenge comes in execution. Look at Hindustan Aeronautics, HAL. Look at the order book, it is bulging and it is continuously increasing. The management is also very confident of new orders coming in. But look at the guidance on topline revenue growth, about 8%. Now, in 8% topline growth cannot command the kind of valuation it is commanding, that is where the challenge is. So, we have to be very cognisant of the fact that you are looking at a rich valuation and if somebody is getting in at these valuations, they should be aiming for a long haul. You should not expect quick returns in this segment. The only company where I expect a re-rating in the near future is Bharat Electronics. This is a fantastic company. Electronics in defence is the key thing nowadays. ADVERTISEMENT They cater to air force, army, navy, all three wings of the armed forces. Adjacencies like metro network, they have got into, export market has opened up, strong balance sheet, good execution. Last year, the order inflow was below expectations, but that is going to get corrected surely this year. So, some kind of re-rating at some stage during the current fiscal is possible and investors can look at buying into BEL even at current levels. (You can now subscribe to our ETMarkets WhatsApp channel)
Time of India
21-05-2025
- Business
- Time of India
Market caution justified after sharp rally, investors should stay vigilant: Sudip Bandyopadhyay
"Things have moved up quite a bit in the recent past over the last one week and a bit of profit booking, bit of caution was warranted and that is what pretty much we are getting kind of displayed today. Some amount of concern is building definitely around the trade deal and the 2nd June by when that 90-day period runs out is also around the corner," says Sudip Bandyopadhyay , Group Chairman, Inditrade Capital . And I believe now all eyes and all attention is shifted towards what will be the likelihood of the trade deal between India and the United States. We know that Piyush Goyal is in the United States for a four-day meeting and trying to carve out some trade deal with the United States. There are a lot of news or reports floating around what sort of a deal they could actually cut with the United States. But what is your take? Now, what are the markets waiting for? You think it is just a point of consolidation because too much has happened or too much has transpired in the last one month. Sudip Bandyopadhyay: Oh, absolutely, right. More than the trade deal, of course, there are uncertainties and speculation around what the trade deal can or cannot do with bit of consolidation, profit booking, or bit of a risk aversion, whatever terminology we may choose, it is pretty much on the back of that. Things have moved up quite a bit in the recent past over the last one week and a bit of profit booking, bit of caution was warranted and that is what pretty much we are getting kind of displayed today. Some amount of concern is building definitely around the trade deal and the 2nd June by when that 90-day period runs out is also around the corner. So, there is a race against time to get the deals done and many countries are at it. So, we will have to wait and watch because US policymaking currently is inherently very volatile and we will have to be bracing for some amount of turbulence going ahead again. So, it is better to be bit cautious, better to be bit guarded as we approach 2nd June. Also, want to get your sense on the top Nifty loser today and that is Eternal. It has been consolidating over the course of the day but now it is lower by 4%. Yesterday also the stock was cracking in trade, but today we have news flow that the board has received shareholder approval to cap the foreign holding at 49.5%. Remember almost a month ago when this announcement first came into the market when the shareholder approval was pending, this was seen in a very positive light and today when this approval has come in there has been a sharp cut on the stock of 4%. This also means that there could be a potential loss of flows coming in from global indices, for example the MSCI index. Help us understand why this divergence in terms of the stock move that we have seen for Eternal and what lies ahead fundamentally for the company. Sudip Bandyopadhyay: Fundamentally, if you look at it, they are making a conscious call regarding how they want to run their business. They are keeping the foreign holding below 50%. They will be entitled to do lot many things which a foreign entity which is by definition companies having more than 50% foreign shareholding will not be allowed to do. Live Events So, they have chosen that and they want to operate those dark stores. They want to have inventory with themselves which they want to sell directly. So, these are the things which will probably give them benefit in the long run and their business structure fundamentally will be different from a Zepto or even a Swiggy and that is the distinction they are trying to draw. Yes, it will definitely ensure that the flows do not come the way they will come into a Swiggy or a Zepto when it gets listed, but that a conscious call and it is a conscious call based on the model they are choosing to go ahead with. So, I would not read too much into it. There are business models which are very solid and sound based in the parameters of a domestic company. Again, there are advantages of having foreign inflows into the company. So, we will have to see how things pan out, how they are able to scale up their business. But as things stand today in front of Eternal, their quick commerce business is in the phase of scale up with intense competition and that is eating into the margins. Under these circumstances, they have very clearly said that the margins will be under pressure and market is cognisant of that. So, I would not read too much into today's this correction which is on the back of this fear that foreign inflows will come much lower in Eternal going forward. Yes, that is a fact, but I do not think that will prevent Eternal from performing either in the P&L sense or in the market sense.
Time of India
19-05-2025
- Politics
- Time of India
'TMC MP Yusuf Pathan to opt out of all-party delegation on Operation Sindoor': Report
TMC MP Yusuf Pathan. NEW DELHI: A senior leader from the Trinamool Congress stated on Sunday that foreign policy falls within the purview of the Union government, which should bear complete accountability for such matters and claimed that their chosen MP Yusuf Pathan will not be attending the all-party delegation on Operation Sindoor . A government initiative to dispatch seven all-party delegations to vital partner nations, including UN Security Council members, was taken following the Pahalgam terror attack and Operation Sindoor. Whilst TMC leader Sudip Bandyopadhyay declined participation citing health concerns, TMC MP Yusuf Pathan, whose name appeared on the list, will also not attend, according to PTI. The delegations, comprising 51 political leaders, parliamentarians and former ministers from various parties, will visit international capitals to demonstrate India's firm stance against terrorism, particularly in light of Operation Sindoor. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Free P2,000 GCash eGift UnionBank Credit Card Apply Now Undo The delegations, headed by Baijayant Panda, Ravi Shankar Prasad (both BJP), Sanjay Kumar Jha (JDU), Shrikant Shinde (Shiv Sena), Shashi Tharoor (Congress), Kanimozhi (DMK) and Supriya Sule (NCP-SP), will visit 32 countries and the EU headquarters in Brussels, Belgium. The delegations include seven or eight political leaders each, supported by former diplomats. Among the 51 political leaders, 31 represent the ruling NDA coalition, whilst 20 are from non-NDA parties. The TMC leader told PTI, "We believe that the nation is above all, and we pledged our support to the Union government to take whatever action needed to protect our great nation. Our armed forces have made our nation proud and we are forever indebted to them." He further said, "Foreign policy is entirely within the domain of the Union government. Therefore, let only the Union government decide our foreign policy and take complete responsibility for it."
Economic Times
17-05-2025
- Politics
- Economic Times
Shashi Tharoor to lead high-profile US delegation to brief on Operation Sindoor; Milind Deora, Sudip Bandyopadhyay included
Congress MP Shashi Tharoor will lead a 10-member delegation from across parties to the US to brief on the Pahalgam terror attack and Operation Sindoor. The high-profile delegation includes Shashi Tharoor, Shambhavi Choudhary from the Lok Janshakti Party, Dr Sarfaraz Ahmed from Jharkhand Mukti Morcha, Sudip Bandyopadhyay of Trinamool Congress, Telugu Desam Party's Ganti Harish Madhur Balayogi, BJP's Shri Shashank Mani Tripathi and Bhubaneswar Kalita, Shiv Sena's Milind Deora and two non-politicians, including Taranjit Singh Sandhu, Former Ambassador of India to the USA and Dr Varun Jeph, Director (IOR) - Liaison Officer for the delegation The Indian government had earlier announced seven all-party groups of MPs, each having at least five parliamentarians from across parties and a senior diplomat, to address in various countries about the Pahalgam terror attack and Operation Sindoor. The delegations will depart on May 21-22 to countries like the US, UK, EU, Russia, Japan, South Africa and West Asia among others. The senior diplomats will assist MPs during their presentations. The list includes former foreign secretary HV Shringla, former Indian envoys to France, Jawed Ashraff and Mohan Kumar, and former envoy to Japan, Sujan Chinoy. Former External Affairs Minister Salman Khurshid will lead a delegation to south and southeast Asia, covering countries such as South Korea, Japan and Singapore. JDU MP Sanjay Jha and Shringla will also be part of the delegation. Supriya Sule (NCPSP) and Shrikant Shinde (Shiv Sena) are leading a delegation each. Sule's delegation includes Rajiv Pratap Rudy (BJP), Anurag Thakur (BJP), Manish Tewari (Congress), Brij Lal (BJP) and Tejaswi Surya (BJP).Asaduddin Owaisi (AIMIM) will also be part of a delegation. DMK leader Kanimozhi is leading the delegation to Russia. RJD MP Prem Chand Gupta is in her J&K CM Ghulam Nabi Azad is likely to lead the delegation visiting UK, France, Germany and EU headquarters in Brussels. BJP's RS Prasad is likely to lead a delegation to West Asia, including Saudi Arabia. Samajwad MP Rajeev Kumar Rai is also part of a delegation. Trinamool MP Sudip Bandyopadhyay has also been invited, but he has informed that he is not fit to travel such a long distance.
