Factory Activity Hits 4-Month High On Robust Demand: Report

India's factory activity expanded at its quickest pace in four months in April, driven by solid growth in new orders and output, a private survey showed on Monday, signaling resilient demand and an encouraging outlook.

The survey results suggest India will continue to be one of the fastest-growing major economies despite slowing global growth that has undermined momentum across several other countries.

The Manufacturing Purchasing Managers' Index compiled by S&P Global increased to 57.2 last month from March's 56.4, remaining above the 50-mark separating growth from contraction for a 22nd month and confounding expectations in a Reuters poll for a fall to 55.8.

"Reflecting a robust and quicker expansion in new orders, production growth took another step forward in April. Companies also benefited from relatively mild price pressures, better international sales and improving supply-chain conditions," Pollyanna De Lima, economics associate director at S&P Global Market Intelligence, said in a release accompanying the survey.

"It seems like Indian manufacturers have abundant opportunities to keep powering ahead. Besides seeing the strongest inflow of new work in 2023 so far, capacities were expanded through job creation, input buying was lifted."

Both new orders and output grew at their fastest pace since December, and that helped firms resume hiring during April, following the first decline in 13 months in March.

Foreign demand also expanded at the fastest pace in four months in April and optimism improved.

"Manufacturers are certainly upbeat towards growth prospects, with optimism improving from March's eight-month low on the back of contracts pending approval, rising client enquiries, marketing initiatives and evidence of demand resilience," De Lima said.

The survey showed input costs rose at a faster pace in April, although improving demand meant firms were able to pass on some of that burden to customers, suggesting retail inflation is unlikely to slow significantly anytime soon.

Inflation was expected to average 5.3% this fiscal year and 5.0% next, remaining well above the Reserve Bank of India's 4.0% medium-term target, a separate Reuters poll found.

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Indian Job Market To Witness 22% Churn In 5 Years: World Economic Forum

The Indian job market is estimated to witness 22 per cent churn over the next five years, with top emerging roles coming from AI, machine learning and data segments, a new study showed on Monday.

Globally, the job market churn is estimated at 23 per cent, with 69 million new jobs expected to be created and 83 million eliminated by 2027, the World Economic Forum said in its latest Future of Jobs report.

"Almost a quarter of jobs (23 per cent) are expected to change in the next five years through growth of 10.2 per cent and decline of 12.3 per cent (globally)," the WEF said.

According to the estimates of the 803 companies surveyed for the report, employers anticipate 69 million new jobs to be created and 83 million eliminated among the 673 million jobs corresponding to the dataset, a net decrease of 14 million jobs, or 2 per cent of current employment.

Regarding India, it said 61 per cent of companies think broader applications of ESG (environment, social and governance) standards will drive job growth, followed by increased adoption of new technologies (59 per cent) and broadening digital access (55 per cent).

Top roles for industry transformation in India would be AI (artificial intelligence) and machine learning specialists, and data analysts and scientists, it added.

The report also found that manufacturing and oil and gas sectors have the highest level of green skill intensity globally, with India, the US and Finland featuring at the top of the list for the oil and gas sector.

Also, more populous economies such as India and China were more positive than the global average when compared with countries' viewpoints on talent availability while hiring.

On the other hand, India figured among the seven countries where job growth was slower for social jobs than non-social jobs.

In India, 97 per cent of respondents said that the preferred source of funding for training was 'funded by organisation' as against the global average of 87 per cent.

The WEF said that macro trends, including the green transition, ESG standards and localisation of supply chains are the leading drivers of job growth globally, with economic challenges, including high inflation, slower economic growth and supply shortages, posing the greatest threat.

Advancing technology adoption and increasing digitisation will cause significant labour market churn, with an overall net positive in job creation, it added.

"For people around the world, the past three years have been filled with upheaval and uncertainty for their lives and livelihoods, with COVID-19, geopolitical and economic shifts, and the rapid advancement of AI and other technologies now risks adding more uncertainty," said Saadia Zahidi, Managing Director, World Economic Forum.

"The good news is that there is a clear way forward to ensure resilience. Governments and businesses must invest in supporting the shift to the jobs of the future through the education, reskilling and social support structures that can ensure individuals are at the heart of the future of work," she added.

The survey covered 803 companies - collectively employing more than 11.3 million workers - in 27 industry clusters and 45 economies from all world regions.

The WEF said technology continues to pose both challenges and opportunities to labour markets, but employers expect most technologies to contribute positively to job creation.

The fastest-growing roles are being driven by technology and digitalisation. Big data ranks at the top among technologies seen to create jobs. The employment of data analysts and scientists, big data specialists, AI machine learning specialists and cybersecurity professionals is expected to grow on average by 30 per cent by 2027.

At the same time, the fastest declining roles are also being driven by technology and digitalisation, with clerical or secretarial roles, including bank tellers, cashiers and data entry clerks expected to decline fastest.

Also, while expectations of the displacement of physical and manual work by machines have decreased, reasoning, communicating and coordinating - all traits with a comparative advantage for humans - are expected to be more automatable in future.

Artificial intelligence, a key driver of potential algorithmic displacement, is expected to be adopted by nearly 75 per cent of surveyed companies and is expected to lead to high churn - with 50 per cent of organisations expecting it to create job growth and 25 per cent anticipating it to result in job losses.

However, the largest absolute gains in jobs will come from education and agriculture. The report found that jobs in the education industry are expected to grow by about 10 per cent, leading to 3 million additional jobs for vocational education teachers and university and higher education teachers.

Jobs for agricultural professionals, especially agricultural equipment operators, graders and sorters, are expected to see a 15-30 per cent increase, leading to an additional 4 million jobs.

Globally, six in 10 workers will require training before 2027, but only half of the employees are seen to have access to adequate training opportunities today.

At the same time, the report estimates that, on average, 44 per cent of an individual worker's skills will need to be updated.

In response to the cost-of-living crisis, 36 per cent of companies recognise that offering higher wages could help them attract talent. Yet, companies are planning to mix both investment and displacement to make their workforce more productive and cost-effective.

Four in five surveyed companies plan to invest in learning and training on the job as well as automating processes in the next five years.

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Commercial LPG Cylinder Price Reduced By Rs 171.5 Per Unit

Petroleum and oil marketing companies have slashed the price of Commercial LPG cylinders by Rs 171.50 with immediate effect, according to sources on Monday.

After the move, the latest retail price of a 19 kg LPG cylinder in Delhi now stands at Rs 1,856.50.

Last month, too, their prices were reduced by Rs 91.50 per unit, standing at Rs 2,028 per unit.

Petroleum and oil marketing companies had on March 1 this year hiked the prices of commercial LPG cylinders by Rs 350.50 per unit and domestic LPG cylinders by Rs 50 per unit.

The prices of the commercial cylinders were reduced the last time in September 1 last year by Rs 91.50.On August 1, 2022, too, the prices of commercial LPG cylinders were reduced by Rs 36. Prior to that, on July 6, rates for the 19-kilogram commercial cylinder were cut by Rs 8.5 per unit.

(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)

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Commercial LPG Cylinder Price Reduced By Rs 171.5 Per Unit

Petroleum and oil marketing companies have slashed the price of Commercial LPG cylinders by Rs 171.50 with immediate effect, according to sources on Monday.

After the move, the latest retail price of a 19 kg LPG cylinder in Delhi now stands at Rs 1,856.50.

Last month, too, their prices were reduced by Rs 91.50 per unit, standing at Rs 2,028 per unit.

Petroleum and oil marketing companies had on March 1 this year hiked the prices of commercial LPG cylinders by Rs 350.50 per unit and domestic LPG cylinders by Rs 50 per unit.

The prices of the commercial cylinders were reduced the last time in September 1 last year by Rs 91.50.On August 1, 2022, too, the prices of commercial LPG cylinders were reduced by Rs 36. Prior to that, on July 6, rates for the 19-kilogram commercial cylinder were cut by Rs 8.5 per unit.

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Rajneesh Karnatak Joins Bank Of India As Managing Director, CEO

Rajneesh Karnatak has joined the Bank of India as its managing director and chief executive officer, the lender has said.

Rajneesh Karnatak has an experience of over 29 years. Prior to this, he had been the chief general manager of Punjab National Bank until his appointment as executive director in Union Bank of India from October 21, 2021. He completed the Master of Commerce and is a certified associate from Indian Institute of Bankers (CAIIB).

With a new leader we are poised to ascend to new heights & successes. Here are glimpses of warm welcome to our MD & CEO Shri Rajneesh Karnatak at Bank of India Head Office, Mumbai. pic.twitter.com/pvCK07DP9v

— Bank of India (@BankofIndia_IN) April 29, 2023

During his banking career, he has headed critical divisions like large corporate credit branches and strategic verticals such as credit monitoring, digital banking and mid corporate credit as general manager in Oriental Bank of Commerce.

Post-amalgamation of Oriental Bank of Commerce into Punjab National Bank, he headed credit monitoring division and also the corporate credit division in PNB. He carries extensive exposure in project funding and working capital funding along with risk management with specific reference/special emphasis on credit risk.

Mr Karnatak has served as non-executive chairman of UBI Services, on behalf of Union Bank of India. He has also served as non-independent non-executive director on the Board of UBI (UK). He was a member of the governing board of the Indian Institute of Bank Management (IIBM) Guwahati.

He has served as nominee director on behalf of Punjab National Bank on the board of PNB Housing Finance, and India SME Asset Reconstruction Company. He also served as the board trustee on IIFCL Asset Management Co (IAMCL).

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Rajneesh Karnatak Joins Bank Of India As Managing Director, CEO

Rajneesh Karnatak has joined the Bank of India as its managing director and chief executive officer, the lender has said.

Rajneesh Karnatak has an experience of over 29 years. Prior to this, he had been the chief general manager of Punjab National Bank until his appointment as executive director in Union Bank of India from October 21, 2021. He completed the Master of Commerce and is a certified associate from Indian Institute of Bankers (CAIIB).

With a new leader we are poised to ascend to new heights & successes. Here are glimpses of warm welcome to our MD & CEO Shri Rajneesh Karnatak at Bank of India Head Office, Mumbai. pic.twitter.com/pvCK07DP9v

— Bank of India (@BankofIndia_IN) April 29, 2023

During his banking career, he has headed critical divisions like large corporate credit branches and strategic verticals such as credit monitoring, digital banking and mid corporate credit as general manager in Oriental Bank of Commerce.

Post-amalgamation of Oriental Bank of Commerce into Punjab National Bank, he headed credit monitoring division and also the corporate credit division in PNB. He carries extensive exposure in project funding and working capital funding along with risk management with specific reference/special emphasis on credit risk.

Mr Karnatak has served as non-executive chairman of UBI Services, on behalf of Union Bank of India. He has also served as non-independent non-executive director on the Board of UBI (UK). He was a member of the governing board of the Indian Institute of Bank Management (IIBM) Guwahati.

He has served as nominee director on behalf of Punjab National Bank on the board of PNB Housing Finance, and India SME Asset Reconstruction Company. He also served as the board trustee on IIFCL Asset Management Co (IAMCL).

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Wheat Arrivals In Punjab Cross 100 Lakh Metric Tonne

The total wheat arrivals has crossed 100 lakh metric tonne in the 'mandis' of Punjab. The total arrival of wheat crossed 100 lakh metric tonne (LMT) till Thursday, said an official statement.

Of the total arrivals so far, about 3.5 LMT have been purchased by the traders, while the rest has been picked up by the government agencies at Minimum Support Price, the statement said.

Notably, the wheat procurement in the state began on April 1, but due to unseasonal rains in many parts of the state, the pace picked up a few days later.

Punjab's Food, Civil Supplies and Consumer Affairs Minister, Lal Chand Kataruchak said the procurement of wheat has entered its last phase.

The total wheat arrivals has crossed 100 LMT already and has surpassed the entire procurement of last year, which stood at 96 LMT.

Comparing the arrivals with the previous year, the Minister said that "it is a matter of pride that once again Punjab is on top in feeding the nation, with almost 50 per cent of the nationwide government purchase of wheat happening in the State".

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Wheat Arrivals In Punjab Cross 100 Lakh Metric Tonne

The total wheat arrivals has crossed 100 lakh metric tonne in the 'mandis' of Punjab. The total arrival of wheat crossed 100 lakh metric tonne (LMT) till Thursday, said an official statement.

Of the total arrivals so far, about 3.5 LMT have been purchased by the traders, while the rest has been picked up by the government agencies at Minimum Support Price, the statement said.

Notably, the wheat procurement in the state began on April 1, but due to unseasonal rains in many parts of the state, the pace picked up a few days later.

Punjab's Food, Civil Supplies and Consumer Affairs Minister, Lal Chand Kataruchak said the procurement of wheat has entered its last phase.

The total wheat arrivals has crossed 100 LMT already and has surpassed the entire procurement of last year, which stood at 96 LMT.

Comparing the arrivals with the previous year, the Minister said that "it is a matter of pride that once again Punjab is on top in feeding the nation, with almost 50 per cent of the nationwide government purchase of wheat happening in the State".

(This story has not been edited by NDTV staff and is auto-generated from a syndicated feed.)

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ACC Revenue Rises 8.23% to Rs 4,790.91 Crore in Jan-Mar Quarter

Cement maker ACC Ltd on Thursday reported a decline of 40.53 per cent in its consolidated net profit at Rs 235.66 crore for the quarter ended March 2023. The company had posted a profit of Rs 396.33 crore in the January-March quarter a year ago, said ACC, now a part of Adani Cement, in a BSE filing.

Its total revenue from operations during the quarter under review was at Rs 4,790.91 crore, up 8.23 per cent, as against Rs 4,426.54 crore in the corresponding period a year ago.

ACC's total expenses were at Rs 4,514.38 crore, up 14.10 per cent.

Its sales volume (Cement & Clinker) was at 8.5 million tonnes, up 7.6 per cent as against the January-March quarter of the last fiscal.

ACC whole-time Director and CEO Ajay Kapur said: "Our transformation journey fuelled by sizeable operational efficiencies, improved synergies and business excellence has led to substantial improvement in our financial performance and overall business indicators."

"We have a detailed blueprint on each of the cost factors and initiatives to reduce and improve. This along with the capex programme will position the company back into growth momentum synonymous with its legacy," he said.

ACC's revenue from operation for the financial year ended on March 31, 2023 (which is for 15 months this year) is at Rs 22,210.18 crore.

According to ACC, it has changed its financial year end from December to March.

"Therefore, the figure for the current year is for fifteen months and not comparable with the figures for the previous twelve months year ended December 31, 2021," it said.

Over the outlook, Mr Kapur said ACC's "long-term competitiveness remains intact, giving us industry-leading profitability, even as we pursue our growth aspirations. We are confident of continuing our journey of strong performance in the coming quarters." The board of ACC has recommended a dividend on equity shares at Rs 9.25 per share.

Shares of ACC Ltd on Thursday settled at Rs 1,747.10 on the BSE, up 0.51 per cent from the previous close.

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LIC Front Running Case: SEBI Bans 5 Entities From Securities Market

Sebi on Thursday barred five entities, including an employee of Life Insurance Corporation of India (LIC), from the securities market and impounded illegal gains of Rs 2.44 crore made by them, in a case pertaining to front-running the trades of the state-owned insurer.

Also, they have been asked to "cease and desist" from engaging in any fraudulent, manipulative or unfair trade practice, including front-running.

These five entities prohibited by Sebi are -- Yogesh Garg, who was working in the investment department of LIC through which trades on behalf of the insurer were placed; his mother Sarita Garg; his mother-in-law Kamlesh Agarwal; Ved Prakash HUF and Sarita Garg HUF, the capital markets regulator said in its interim order.

Going by Sebi's order, Yogesh Garg is still professionally associated with LIC. Sebi has been informed by LIC that Yogesh Garg has been transferred from the investment department of the company to another department of the insurance firm.

The five entities are connected through family relations, common address and common phone number.

In its order, Sebi found that Yogesh Garg, being a dealer in LIC, was in possession of non-public information regarding impending orders of LIC and acted as an information carrier. He has also, prima facie, used the account of one late Ved Parkash Garg to trade on the basis of the non-public information of LIC.

With respect to other four entities, they or their accounts were prima facie instrumental in front running trades of LIC.

"It is prima facie concluded that Noticees 1 to 5 (five entities) were involved in a scheme to front run the trades of the Big Client (LIC) and therefore they are prima facie jointly and severally liable for the proceeds generated from the front-running trades," Sebi said.

These entities are alleged to have made illegal gains by way of the prima facie front-running activity amounting to Rs 244.09 lakh.

By indulging in such trades, they, prima facie, violated the provision of PFUTP (Prohibition of Fraudulent and Unfair Trade Practices) rules.

Accordingly, Sebi has restrained the five entities from buying, selling, or dealing in securities, either directly or indirectly, in any manner whatsoever until further orders.

Front-running refers to an illegal practice in the stock market where an entity trades based on advanced information from a broker or analyst before the information has been made available to its clients.

The order came after Sebi's alert system generated front-running alerts for January to March 2022 against these five entities suspected to be front-running the trades of LIC or big client.

Based on the alerts, an examination was conducted for the period January 2020 to March 2022 to examine possible violations of regulatory norms by the suspected entities.

The strategies commonly used to front-run trades are -- Buy-Buy-Sell and Sell-Sell-Buy.

In Buy-Buy-Sell (BBS) trading pattern, the alleged front-runner, by using the non-public information regarding an impending buy order of the big client, places his buy order before the big client's buy order. As and when the big client places a buy order, the price of the security rises and the alleged front-runner sells the securities bought earlier, at the raised price, thereby pocketing the difference between the newly raised price of the security which is established post big client's buy trades and the price at which he had bought his securities.

Further, in the Sell-Sell-Buy (SSB) trading pattern, the alleged front-runner by using the non-public information regarding an impending sell order of the big client, places his sell orders before the big client's sell order. When the big client places a sell order, the price of the security falls which allows the alleged front-runner to buy back the securities at a lower price to meet his obligations which he had created earlier by selling securities.

(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)

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LIC Front Running Case: SEBI Bans 5 Entities From Securities Market

Sebi on Thursday barred five entities, including an employee of Life Insurance Corporation of India (LIC), from the securities market and impounded illegal gains of Rs 2.44 crore made by them, in a case pertaining to front-running the trades of the state-owned insurer.

Also, they have been asked to "cease and desist" from engaging in any fraudulent, manipulative or unfair trade practice, including front-running.

These five entities prohibited by Sebi are -- Yogesh Garg, who was working in the investment department of LIC through which trades on behalf of the insurer were placed; his mother Sarita Garg; his mother-in-law Kamlesh Agarwal; Ved Prakash HUF and Sarita Garg HUF, the capital markets regulator said in its interim order.

Going by Sebi's order, Yogesh Garg is still professionally associated with LIC. Sebi has been informed by LIC that Yogesh Garg has been transferred from the investment department of the company to another department of the insurance firm.

The five entities are connected through family relations, common address and common phone number.

In its order, Sebi found that Yogesh Garg, being a dealer in LIC, was in possession of non-public information regarding impending orders of LIC and acted as an information carrier. He has also, prima facie, used the account of one late Ved Parkash Garg to trade on the basis of the non-public information of LIC.

With respect to other four entities, they or their accounts were prima facie instrumental in front running trades of LIC.

"It is prima facie concluded that Noticees 1 to 5 (five entities) were involved in a scheme to front run the trades of the Big Client (LIC) and therefore they are prima facie jointly and severally liable for the proceeds generated from the front-running trades," Sebi said.

These entities are alleged to have made illegal gains by way of the prima facie front-running activity amounting to Rs 244.09 lakh.

By indulging in such trades, they, prima facie, violated the provision of PFUTP (Prohibition of Fraudulent and Unfair Trade Practices) rules.

Accordingly, Sebi has restrained the five entities from buying, selling, or dealing in securities, either directly or indirectly, in any manner whatsoever until further orders.

Front-running refers to an illegal practice in the stock market where an entity trades based on advanced information from a broker or analyst before the information has been made available to its clients.

The order came after Sebi's alert system generated front-running alerts for January to March 2022 against these five entities suspected to be front-running the trades of LIC or big client.

Based on the alerts, an examination was conducted for the period January 2020 to March 2022 to examine possible violations of regulatory norms by the suspected entities.

The strategies commonly used to front-run trades are -- Buy-Buy-Sell and Sell-Sell-Buy.

In Buy-Buy-Sell (BBS) trading pattern, the alleged front-runner, by using the non-public information regarding an impending buy order of the big client, places his buy order before the big client's buy order. As and when the big client places a buy order, the price of the security rises and the alleged front-runner sells the securities bought earlier, at the raised price, thereby pocketing the difference between the newly raised price of the security which is established post big client's buy trades and the price at which he had bought his securities.

Further, in the Sell-Sell-Buy (SSB) trading pattern, the alleged front-runner by using the non-public information regarding an impending sell order of the big client, places his sell orders before the big client's sell order. When the big client places a sell order, the price of the security falls which allows the alleged front-runner to buy back the securities at a lower price to meet his obligations which he had created earlier by selling securities.

(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)

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Meta Earnings Better Than Expected After Restructuring Hiccups

Facebook-parent Meta on Wednesday reported it made a profit of $5.7 billion dollars in the first quarter of this year, beating forecasts after a massive wave of cost-cutting and layoffs.

The profit came on revenue of $28.6 billion and as the number of people using Facebook every month grew to just shy of three billion, an earnings report showed.

"We had a good quarter and our community continues to grow," said Mark Zuckerberg, Meta founder and CEO.

"We're also becoming more efficient so we can build better products faster and put ourselves in a stronger position to deliver our long term vision."

Zuckerberg, who has called 2023 the "year of efficiency", added that artificial intelligence being used at Meta is "driving good results" across its business.

Meta shares were up nearly 10 percent to $239 in after-market trades that followed release of the earnings figures.

Meta said that the number of ads shown across its "family of apps" that includes Instagram increased 26 percent from the same period a year earlier, but the average price per ad slipped.

The tech titan ended March with its headcount of employees down to 77,114, with more staffing cuts in the works, the company reported.

Facebook has taken the most aggressive track among US big tech firms to downsize its staff and has slashed almost a quarter of its global workforce, more than 20,000 jobs in just a few months.

"The year of efficiency is off to a stronger than expected start for Meta," said Insider Intelligence principal analyst Debra Aho Williamson.

"In this economic environment - and after the disaster that was 2022 - 3 percent year over year revenue growth is an accomplishment," she added.

Meta had suffered a rough 2022 amid a souring economic climate, which forced advertisers to cut back on marketing, and Apple's data privacy changes, which have reduced leeway for ad personalization.

Zuckerberg has referred to last year as "a humbling wake-up call" and said it would be wise to "prepare ourselves for the possibility that this new economic reality will continue for many years."

The company is also under pressure for making a huge gamble on the metaverse, the world of virtual reality that Meta believes will be the next frontier online.

This has so far proved to be a bad bet with customers so far unenthused by the technology and artificial intelligence, as epitomized by Microsoft-backed ChatGPT, grabbing the attention.

Meta's Reality Labs, the division  underpinning its Metaverse ambitions, reported  an operating loss of nearly $4 billion, a cash bleed that will rattle investors.

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Banks Should Have Adequate Capital Buffers, Liquidity: RBI Chief

Banks should have adequate capital buffers and liquidity and be ready to report earnings even under macroeconomic stress, Reserve Bank of India (RBI) Governor Shaktikanta Das said on Thursday.

"Our approach has been to enhance the resilience as well as the robustness of the financial sector so that individual entities effectively withstand stressful situations and continue to contribute to the economic development of the country," Mr Das said at an event in Mumbai.

As the banking regulator, the RBI has gone beyond in this regard, nudging entities to build adequate capital buffers in times of plenty, Mr Das said.

The central bank is now looking at the business models of banks more closely, Mr Das said. He said business models can sometimes create risks in certain parts of their balance sheets which can eventually blow out into a bigger crisis.

Mr Das' comments come as the collapse of three mid-sized US banks in March led to turbulence in the US and European banking sectors, igniting fears of a spillover in India.

The banking system has remained resilient and unaffected by sparks of instability witnessed by some advanced economies, Mr Das said.

The gross non-performing asset (NPA) ratio of banks was 4.41% at the end of December 2022, down from 5.8% on March 31, 2022, he added.

However, the RBI expects the management of banks and regulated entities to continuously assess financial risks, and focus on building adequate capital and liquidity buffers, Mr Das said. The regulator's approach has been to flag any deficiency to banks' boards, he added.

The RBI is also doing a fresh assessment of the quality and coverage of statutory branch audits of private banks, the governor said, stressing the need for governance and adequate audits across regulatory entities.

The RBI "remains committed to future-proofing the Indian financial system and providing the required support for sustainable growth", Mr Das added.

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India's Banking System Remains Resilient, Unaffected By Global Events: RBI

Reserve Bank Governor Shaktikanta Das today said the Indian banking system has remained resilient and not adversely impacted by recent events in the global financial ecosystem.

Speaking at a global conference on financial resilience organised by RBI-promoted College of Supervisors in Mumbai, Shaktikanta Das said, "The Indian banking system has remained resilient and has not been affected adversely by the recent sparks of financial instability seen in some advanced economies."

In the remarks that come weeks after the blow-up of the Silicon Valley Bank, which led to distress in the financial sector in the US and Europe, Mr Das said RBI's stress tests show Indian banks will be able to maintain their capital buffers above the minimum requirements even in the case of the most distressing of events.

He, however, said that financial sector surprises can come from anywhere at a time when participants world over are adopting unconventional policies, and urged the stakeholders to be watchful.

The RBI is committed for future proofing of the Indian financial system and to provide support for its sustainable growth, Mr Das said.
 

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Meta Earnings Better Than Expected After Restructuring Hiccups

Facebook-parent Meta on Wednesday reported it made a profit of $5.7 billion dollars in the first quarter of this year, beating forecasts after a massive wave of cost-cutting and layoffs.

The profit came on revenue of $28.6 billion and as the number of people using Facebook every month grew to just shy of three billion, an earnings report showed.

"We had a good quarter and our community continues to grow," said Mark Zuckerberg, Meta founder and CEO.

"We're also becoming more efficient so we can build better products faster and put ourselves in a stronger position to deliver our long term vision."

Zuckerberg, who has called 2023 the "year of efficiency", added that artificial intelligence being used at Meta is "driving good results" across its business.

Meta shares were up nearly 10 percent to $239 in after-market trades that followed release of the earnings figures.

Meta said that the number of ads shown across its "family of apps" that includes Instagram increased 26 percent from the same period a year earlier, but the average price per ad slipped.

The tech titan ended March with its headcount of employees down to 77,114, with more staffing cuts in the works, the company reported.

Facebook has taken the most aggressive track among US big tech firms to downsize its staff and has slashed almost a quarter of its global workforce, more than 20,000 jobs in just a few months.

"The year of efficiency is off to a stronger than expected start for Meta," said Insider Intelligence principal analyst Debra Aho Williamson.

"In this economic environment - and after the disaster that was 2022 - 3 percent year over year revenue growth is an accomplishment," she added.

Meta had suffered a rough 2022 amid a souring economic climate, which forced advertisers to cut back on marketing, and Apple's data privacy changes, which have reduced leeway for ad personalization.

Zuckerberg has referred to last year as "a humbling wake-up call" and said it would be wise to "prepare ourselves for the possibility that this new economic reality will continue for many years."

The company is also under pressure for making a huge gamble on the metaverse, the world of virtual reality that Meta believes will be the next frontier online.

This has so far proved to be a bad bet with customers so far unenthused by the technology and artificial intelligence, as epitomized by Microsoft-backed ChatGPT, grabbing the attention.

Meta's Reality Labs, the division  underpinning its Metaverse ambitions, reported  an operating loss of nearly $4 billion, a cash bleed that will rattle investors.

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Sensex, Nifty Rise In Early Trade For 4th Straight Day

Market benchmark indices advanced in early trade on Thursday, climbing for the fourth straight day amid fresh foreign fund inflows and buying in index major Reliance Industries.

The 30-share BSE Sensex climbed 88.71 points to 60,389.29 points. The broader NSE Nifty advanced 19.40 points to 17,833 points.

From the Sensex firms, Kotak Mahindra Bank, Bajaj Finance, Bajaj Finserv, IndusInd Bank, ITC, Reliance Industries, Larsen & Toubro and Mahindra & Mahindra were the major winners.

Power Grid, Tata Consultancy Services, Wipro, Asian Paints, Hindustan Unilever and Axis Bank were among the laggards.

In Asian markets, Seoul and Shanghai were trading in the green while Japan and Hong Kong quoted lower.

The US markets had ended mostly lower on Wednesday.

"With the current month's F&O set to expire today, caution may prevail. Recession fears are again seen resurfacing in the US amid renewed concerns about a wider impact from the recent banking crisis.

"Also, chances of more rate hikes by the US Fed and key European nations are likely to keep upside capped going ahead. However, positive catalysts like crude oil prices below USD 80 a barrel and FIIs turning net buyers of local shares could limit the downside in the near term," Prashanth Tapse, Senior VP (Research) at Mehta Equities Ltd, said.

The BSE benchmark climbed 169.87 points or 0.28 per cent to settle at 60,300.58 points on Wednesday.

The Nifty advanced 44.35 points or 0.25 per cent to end at 17,813.60 points.

Meanwhile, global oil benchmark Brent crude advanced 0.48 per cent to USD 78.06 per barrel.

Foreign Institutional Investors (FIIs) turned buyers on Wednesday as they bought equities worth Rs 1,257.48 crore, according to exchange data.

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Sensex, Nifty Rise In Early Trade For 4th Straight Day

Market benchmark indices advanced in early trade on Thursday, climbing for the fourth straight day amid fresh foreign fund inflows and buying in index major Reliance Industries.

The 30-share BSE Sensex climbed 88.71 points to 60,389.29 points. The broader NSE Nifty advanced 19.40 points to 17,833 points.

From the Sensex firms, Kotak Mahindra Bank, Bajaj Finance, Bajaj Finserv, IndusInd Bank, ITC, Reliance Industries, Larsen & Toubro and Mahindra & Mahindra were the major winners.

Power Grid, Tata Consultancy Services, Wipro, Asian Paints, Hindustan Unilever and Axis Bank were among the laggards.

In Asian markets, Seoul and Shanghai were trading in the green while Japan and Hong Kong quoted lower.

The US markets had ended mostly lower on Wednesday.

"With the current month's F&O set to expire today, caution may prevail. Recession fears are again seen resurfacing in the US amid renewed concerns about a wider impact from the recent banking crisis.

"Also, chances of more rate hikes by the US Fed and key European nations are likely to keep upside capped going ahead. However, positive catalysts like crude oil prices below USD 80 a barrel and FIIs turning net buyers of local shares could limit the downside in the near term," Prashanth Tapse, Senior VP (Research) at Mehta Equities Ltd, said.

The BSE benchmark climbed 169.87 points or 0.28 per cent to settle at 60,300.58 points on Wednesday.

The Nifty advanced 44.35 points or 0.25 per cent to end at 17,813.60 points.

Meanwhile, global oil benchmark Brent crude advanced 0.48 per cent to USD 78.06 per barrel.

Foreign Institutional Investors (FIIs) turned buyers on Wednesday as they bought equities worth Rs 1,257.48 crore, according to exchange data.

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Samsung's Profit Drops 95%, Worst Quarterly Earnings In 14 Years

Samsung Electronics on Thursday reported its worst quarterly profits in 14 years, blaming slowing consumer spending on electronics and a global microchip glut that hit its core memory business.

The South Korean company -- one of the world's largest makers of memory chips and smartphones -- said in a statement that operating profit fell 640 billion won ($478.6 million) -- down 95 percent from a year earlier.

The company's first-quarter net income fell 86.1 percent to 1.57 trillion won, and sales dropped 18 percent to 63.75 trillion won.

The company said that "overall consumer spending slowed amid the uncertain global macroeconomic environment".

Samsung also blamed weakening demand for memory chips -- which usually generate about half the firm's profits -- and falling chip prices.

Samsung's chip division reported 4.58 trillion won in losses, its first operating loss since 2009 -- when the world was emerging from the 2008 financial crisis.

It said this was due to "continued price declines and an increased valuation loss ... amid weakening sentiment and continued impacts of inventory adjustments by customers caused by prolonged external uncertainties," the company said.

Demand for memory was "expected to gradually recover" in the second half of 2023, "amid projections that customer inventory levels will have declined."

The firm is the flagship subsidiary of the giant Samsung Group, by far the largest of the family-controlled conglomerates that dominate business in Asia's fourth-largest economy.

The first-quarter drop is the third consecutive margin squeeze for Samsung, which saw a 70 percent fall in operating profits in the fourth quarter on-year.

Scaling back production

Korean chipmakers -- led by Samsung -- have enjoyed record profits in recent years as prices for their products soared, but the global economic slowdown has dealt a blow to memory sales.

Demand swelled during the pandemic as consumers bought new computers and smartphones during lockdowns, prompting chip makers to ramp up production.

But demand quickly diminished as lockdowns lifted and weakened further in the face of soaring inflation and rising interest rates.

Samsung said this month it will scale back memory chip production at a "meaningful" level to address the oversupply, an unusual move by the firm, which previously said it would make only small adjustments.

South Korean chip maker SK Hynix and Micron Technology of the United States have also reduced production.

Samsung's "active" efforts to get out of the inventory rut were "positively evaluated" considering its effect on market sentiment and demand for memory chips, said a report released by Eugene Investment & Futures.

"Even if the pace of recovery for demand remains slow, the semiconductor industry is highly likely to recover in the second half if cooperation among the chip makers on production cuts goes well," it added.

While solid sales of its new flagship Galaxy 23 smartphones helped offset deficits in the chip sector in the first quarter, analysts expect conditions in the April to July period to worsen and even lead to Samsung's first profit loss since 2008.

"We cannot rule out the possibility of Samsung swinging to the red when the effect of new smartphones diminishes," Hwang Min-seong, an analyst at Samsung Securities, told Yonhap news agency.

The recent drop in profits has not deterred Samsung from making bold investments -- in March, it unveiled plans to contribute $227 billion over the next two decades to building the world's largest chip centre in Yongin, south of Seoul. 

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Samsung's Profit Drops 95%, Worst Quarterly Earnings In 14 Years

Samsung Electronics on Thursday reported its worst quarterly profits in 14 years, blaming slowing consumer spending on electronics and a global microchip glut that hit its core memory business.

The South Korean company -- one of the world's largest makers of memory chips and smartphones -- said in a statement that operating profit fell 640 billion won ($478.6 million) -- down 95 percent from a year earlier.

The company's first-quarter net income fell 86.1 percent to 1.57 trillion won, and sales dropped 18 percent to 63.75 trillion won.

The company said that "overall consumer spending slowed amid the uncertain global macroeconomic environment".

Samsung also blamed weakening demand for memory chips -- which usually generate about half the firm's profits -- and falling chip prices.

Samsung's chip division reported 4.58 trillion won in losses, its first operating loss since 2009 -- when the world was emerging from the 2008 financial crisis.

It said this was due to "continued price declines and an increased valuation loss ... amid weakening sentiment and continued impacts of inventory adjustments by customers caused by prolonged external uncertainties," the company said.

Demand for memory was "expected to gradually recover" in the second half of 2023, "amid projections that customer inventory levels will have declined."

The firm is the flagship subsidiary of the giant Samsung Group, by far the largest of the family-controlled conglomerates that dominate business in Asia's fourth-largest economy.

The first-quarter drop is the third consecutive margin squeeze for Samsung, which saw a 70 percent fall in operating profits in the fourth quarter on-year.

Scaling back production

Korean chipmakers -- led by Samsung -- have enjoyed record profits in recent years as prices for their products soared, but the global economic slowdown has dealt a blow to memory sales.

Demand swelled during the pandemic as consumers bought new computers and smartphones during lockdowns, prompting chip makers to ramp up production.

But demand quickly diminished as lockdowns lifted and weakened further in the face of soaring inflation and rising interest rates.

Samsung said this month it will scale back memory chip production at a "meaningful" level to address the oversupply, an unusual move by the firm, which previously said it would make only small adjustments.

South Korean chip maker SK Hynix and Micron Technology of the United States have also reduced production.

Samsung's "active" efforts to get out of the inventory rut were "positively evaluated" considering its effect on market sentiment and demand for memory chips, said a report released by Eugene Investment & Futures.

"Even if the pace of recovery for demand remains slow, the semiconductor industry is highly likely to recover in the second half if cooperation among the chip makers on production cuts goes well," it added.

While solid sales of its new flagship Galaxy 23 smartphones helped offset deficits in the chip sector in the first quarter, analysts expect conditions in the April to July period to worsen and even lead to Samsung's first profit loss since 2008.

"We cannot rule out the possibility of Samsung swinging to the red when the effect of new smartphones diminishes," Hwang Min-seong, an analyst at Samsung Securities, told Yonhap news agency.

The recent drop in profits has not deterred Samsung from making bold investments -- in March, it unveiled plans to contribute $227 billion over the next two decades to building the world's largest chip centre in Yongin, south of Seoul. 

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Rupee Falls 6 Paise To 82.01 Against US Dollar

The rupee depreciated 6 paise to 82.01 against the US dollar in early trade on Wednesday, weighed down by foreign fund outflows and a negative trend in domestic equities.

At the interbank foreign exchange, the domestic unit opened weak at 82.00 against the dollar, then fell to 82.01, registering a decline of 6 paise over its last close.

On Tuesday, the rupee settled at 81.95 against the dollar.

The dollar index, which gauges the greenback's strength against a basket of six currencies, fell 0.04 per cent to 101.82.

Brent crude futures, the global oil benchmark, advanced 0.37 per cent to USD 81.07 per barrel.

"The undercurrents of the rising chaos on the global front amid geo-political concerns and a sudden change in the risk on and off mode are not healthy for the currency.

"However, in the near-term perspective, the pair has been squeezed between 81.80-82.20, and a push above 82.20 is required to take the pair towards 82.50-82.80 levels," CR Forex Advisors MD Amit Pabari said.

In the domestic equity market, the 30-share BSE Sensex was trading 157.29 points or 0.26 per cent lower at 59,973.42 points. The broader NSE Nifty declined 50.30 points or 0.28 per cent to 17,718.95 points.

Foreign Institutional Investors (FIIs) were net sellers in the capital markets on Tuesday as they offloaded shares worth Rs 407.35 crore, according to exchange data.
 

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Rupee Falls 6 Paise To 82.01 Against US Dollar

The rupee depreciated 6 paise to 82.01 against the US dollar in early trade on Wednesday, weighed down by foreign fund outflows and a negative trend in domestic equities.

At the interbank foreign exchange, the domestic unit opened weak at 82.00 against the dollar, then fell to 82.01, registering a decline of 6 paise over its last close.

On Tuesday, the rupee settled at 81.95 against the dollar.

The dollar index, which gauges the greenback's strength against a basket of six currencies, fell 0.04 per cent to 101.82.

Brent crude futures, the global oil benchmark, advanced 0.37 per cent to USD 81.07 per barrel.

"The undercurrents of the rising chaos on the global front amid geo-political concerns and a sudden change in the risk on and off mode are not healthy for the currency.

"However, in the near-term perspective, the pair has been squeezed between 81.80-82.20, and a push above 82.20 is required to take the pair towards 82.50-82.80 levels," CR Forex Advisors MD Amit Pabari said.

In the domestic equity market, the 30-share BSE Sensex was trading 157.29 points or 0.26 per cent lower at 59,973.42 points. The broader NSE Nifty declined 50.30 points or 0.28 per cent to 17,718.95 points.

Foreign Institutional Investors (FIIs) were net sellers in the capital markets on Tuesday as they offloaded shares worth Rs 407.35 crore, according to exchange data.
 

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Serum Institute To Double Investment In Biocon's Unit To $300 Million

 The Serum Institute of Life Sciences will double its investment in one of Biocon Ltd's units, giving it access to 100 million doses of vaccines annually along with the distribution rights to Serum's vaccine portfolio, the Indian biopharma firm said today.

Serum Institute of Life Sciences is a unit of Serum Institute of India, the world's biggest vaccine maker.

Under new terms of the alliance, it would pump in $150 million after converting a loan to Biocon Pharma Ltd into equity in Biocon Biologics Ltd, the company said.

The investment is in addition to the $150 million that Serum Institute of Life Sciences invested in Biocon Biologics in November, the company said.

Biocon had signed an agreement in September 2021 to offer about 15% stake in Biocon Biologics to Serum Institute of Life Sciences.

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Sensex, Nifty Trade Flat As Investors Await Quarterly Earnings

Domestic equity markets witnessed volatile trading in the morning session on Tuesday, with Sensex and Nifty trading flat as investors await corporate results to assess demand scenario in the economy.

A day after reclaiming the 60,000-level, the 30-share benchmark Sensex opened in the negative territory and was trading marginally lower at 60,045.23 points.

As many as 14 Sensex constituents gained, while 16 declined in early trade.

The broader 50-share Nifty was trading flat at 17,740.60 points after opening marginally lower. As many as 25 scrips of the key index were in the positive zone, while an equal number were in the negative territory.

Asian markets witnessed mixed trends as Japan's Nikkei 225 was trading higher, while Hong Kong's Hang Seng and China's SSE Composite Index were quoting lower.

On Monday, European markets closed in the red, while the US shares ended on a mixed note as investors await financial results of big tech companies and fresh economic data amid concerns in certain quarters about possible recession.

In a pre-market open note, Deepak Jasani, Head of Retail Research at HDFC securities, said the Indian market could open flat to mildly higher, despite largely lower Asian markets today and mixed US markets on Monday.

Asia-Pacific markets were largely lower on Tuesday, following a similar session on Wall Street as investors look ahead to big tech earnings later this week, he added.

Buoyed by strong buying in financial stocks, Sensex and Nifty had settled with gains on Monday, with the 30-share index reclaiming the 60,000-level.

Mitul Shah, Head of Research - Institutional Desk at Reliance Securities, in a pre-market open note said the markets are in the thick of the earnings season both in India and globally.

Investors will closely analyse the quarterly numbers and the management commentary on the demand scenario in the economy. Commodity prices, including Brent crude prices, will depend on the extent of the recessionary conditions in the US and recovery in China, he said.

Foreign Institutional Investors (FIIs) were net sellers on Monday as they offloaded domestic equities worth Rs 412.27 crore, as per data available with BSE.

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Serum Institute To Double Investment In Biocon's Unit To $300 Million

 The Serum Institute of Life Sciences will double its investment in one of Biocon Ltd's units, giving it access to 100 million doses of vaccines annually along with the distribution rights to Serum's vaccine portfolio, the Indian biopharma firm said today.

Serum Institute of Life Sciences is a unit of Serum Institute of India, the world's biggest vaccine maker.

Under new terms of the alliance, it would pump in $150 million after converting a loan to Biocon Pharma Ltd into equity in Biocon Biologics Ltd, the company said.

The investment is in addition to the $150 million that Serum Institute of Life Sciences invested in Biocon Biologics in November, the company said.

Biocon had signed an agreement in September 2021 to offer about 15% stake in Biocon Biologics to Serum Institute of Life Sciences.

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5 Stocks To Watch Out For Bonus Shares And Stock Splits In May 2023

We all like weekends. Two days off after a long work week is just what we need. But you know what's better than a weekend? A long weekend! A weekend is good but a long weekend is more fun.

Just like people look forward to an extra day off from work, investors also look forward to companies declaring bonus shares and stock splits.

A bonus share is an additional share that a company issues to its existing shareholders at no cost, based on the number of shares they already hold.

This means that an investor who holds 100 shares of a company receiving a 1:1 bonus share will now hold 200 shares without having to pay anything for the new shares.

On the other hand, a stock split is when a company divides its existing shares into multiple shares while maintaining the overall value of the shares.

For example, a company that has 1,000 shares trading at Rs 100 per share may decide to split its shares into 2,000 shares trading at Rs 50 per share.

Bonus shares and stock splits are exciting events because they have a material impact on the company's stock price. Shares of the companies declaring bonus shares or stock splits continue to remain in focus for at least a month after their corporate action activity.

In today's article, we'll take a look at five companies to watch out in May 2023. These companies have either declared bonus shares or stock splits in May 2023.

#1 Vardhman Special Steel

First on the list is Vardhman Special Steel.

Vardhman Special Steels is a producer of special and alloy steels in India. The company mainly caters to special and alloy steel hot rolled bars for engineering, automotive, tractor, bearing, and allied industries.

The company's board announced bonus shares on 12 April 2023.

It will issue bonus shares in a ratio of 1:1. This means one new bonus share for every existing shares in the company.

The record date for the same is 05 May 2023.

The company's revenues increased significantly in June 2022 quarter. During the said quarter, revenue was up by 30%, sequentially.

However, after that the company's revenue has declined constantly. From June 2022 to December 2022 the company's revenue declined by 13%.

The company faced strong headwinds due to rising input costs. However, the company managed to come out of the danger zone based on bright business prospects.

It aims to make Japanese quality steel in India for Indian auto majors and ASEAN region and to reduce manufacturing costs by reducing and the eliminating waste.

#2 Salasar Exterior and Contours

Second company on the list is Salasar Exterior and Contours.

Salasar Exterior and Contours is an India based civil construction company engaged in business of exterioir and interior design and civil work.

The company offers commercial premises management activities such as wall painting, furniture making, civil works, and other architectural related solutions.

The company's board on 18 April 2023 approved the stock split of shares in a ratio of 1:10. This means that each share of Rs 10, will now be converted into 10 shares of Rs 1 each.

For example, if before stock split an investor had 10 shares of Rs 10, then after the stock split, he will have 100 shares of Rs 1.

The record date for stock split 03 May 2023.

During financial year 2022, the company recorded a total income of Rs 72 million (m) compared to Rs 121 m reported during previous year. It reported a net profit of Rs 28 m during financial year 2022 as against a net loss of Rs 14 m reported during the financial year 2021.

#3 Sprayking Agro Equipment

Next on the list is Sprayking Agro Equipment.

Sprayking Agro Equipment is an emerging leader in brass parts manufacturing, including brass fittings, brass forging equipment, brass transformer parts, and other customized brass parts. It is the first listed company in SME segment of BSE, manufacturing 100% brass parts.

The company has a global presence in USA, Europe, Australia, Canada, South Africa, UAE, and India.

The company's board announced bonus shares on 21 April 2023.

It will issue bonus shares in a ratio of 2:3. This means two new bonus shares for every three existing shares in the company.

The record date for the same is 25 April 2023. The bonus shares will be credited to the account of shareholders on 04 May 2023.

The company's financial position has slackened in the last three years. Its revenues have consistently declined in the last three years. During financial year 2022, the company's total revenues fell 22%.

Even when we look at the profits, the numbers are displeasing. During the said financial year, the company's profits fell 50%.

The brass industry has been under a lot of pressure ever since the covid-19 period. Brass companies have low margins, lock downs, rising interest rates, and a strengthening dollar reduced the profits of companies.

India is one of the biggest importers of brass in the world. Hence, the weakening rupee has the biggest impact on profit margin of brass companies because input material cost rises significantly. No wonder Sprayking Agro Equipment's profit margin suffered as of late.

#4 Macrotech Developers

Fourth on the list is Macrotech Developers.

Macrotech Developers was formerly known as Lodha Developers. It is among the largest real estate developers in India and has been involved in the real estate business since the 1980s.

Being an Indian multinational real estate company, the company developed residential & commercial properties in Mumbai, Thane, Hyderabad, Pune, and London.

The company commenced operations in Mumbai, developing affordable housing projects in the suburbs of Mumbai. It later diversified into other segments and regions in the MMR and Pune.

In a statement filed with the stock exchange on 16 April 2023 the company announced that the board will meet on 22 April to consider the issue of fully paid bonus share.

Considering the announcement, the board may pay bonus in the month of May.

Rising interest rates took a toll on all real estate companies and Macrotech Developers was no exception.

When the central bank raises interest rates, borrowing costs for buying real estate increases, as most home loans are linked to the repo rate. Thus houses become less affordable which hurts the business of the company.

However, the winds are slowly changing. For the December 2022 quarter, it reported its best-ever Q3 pre-sales performance of Rs 30.4 billion (bn), showing a growth of 16% YoY on better housing demand.

#5 Radhagobind Commercial

The last company on the list is Radhagobind Commercial.

Radhagobind Commercial operations involve trading in fabrics. The company deals with fabrication materials, which consists of embroidery fancy sarees, fabrics, and textile dress materials. It also trades in textile goods and ancillary activities in India.

The company's board, on 24 February 2023, approved the stock split of the shares in the ratio of 1:10. This means that each share of Rs 10, will now be converted into 10 shares of Rs 1 each.

During Q3 of financial year 2023, the company reported a net loss of Rs 0.5 m compared to Rs 0.1 m reported in the year-ago quarter. In the December 2022 quarter as well as the year-ago December 2021 quarter, there was no revenue from operations declared by the company.

Investment Takeaway

It's important to remember that these corporate actions do not guarantee success and investors should conduct thorough research and analysis before making any investment decisions.

It's important to consider the company's financial health, market trends, and other factors that could impact the stock's performance.

Disclaimer: This article is for information purposes only. It is not a stock recommendation and should not be treated as such.

This article is syndicated from Equitymaster.com

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5 Stocks To Watch Out For Bonus Shares And Stock Splits In May 2023

We all like weekends. Two days off after a long work week is just what we need. But you know what's better than a weekend? A long weekend! A weekend is good but a long weekend is more fun.

Just like people look forward to an extra day off from work, investors also look forward to companies declaring bonus shares and stock splits.

A bonus share is an additional share that a company issues to its existing shareholders at no cost, based on the number of shares they already hold.

This means that an investor who holds 100 shares of a company receiving a 1:1 bonus share will now hold 200 shares without having to pay anything for the new shares.

On the other hand, a stock split is when a company divides its existing shares into multiple shares while maintaining the overall value of the shares.

For example, a company that has 1,000 shares trading at Rs 100 per share may decide to split its shares into 2,000 shares trading at Rs 50 per share.

Bonus shares and stock splits are exciting events because they have a material impact on the company's stock price. Shares of the companies declaring bonus shares or stock splits continue to remain in focus for at least a month after their corporate action activity.

In today's article, we'll take a look at five companies to watch out in May 2023. These companies have either declared bonus shares or stock splits in May 2023.

#1 Vardhman Special Steel

First on the list is Vardhman Special Steel.

Vardhman Special Steels is a producer of special and alloy steels in India. The company mainly caters to special and alloy steel hot rolled bars for engineering, automotive, tractor, bearing, and allied industries.

The company's board announced bonus shares on 12 April 2023.

It will issue bonus shares in a ratio of 1:1. This means one new bonus share for every existing shares in the company.

The record date for the same is 05 May 2023.

The company's revenues increased significantly in June 2022 quarter. During the said quarter, revenue was up by 30%, sequentially.

However, after that the company's revenue has declined constantly. From June 2022 to December 2022 the company's revenue declined by 13%.

The company faced strong headwinds due to rising input costs. However, the company managed to come out of the danger zone based on bright business prospects.

It aims to make Japanese quality steel in India for Indian auto majors and ASEAN region and to reduce manufacturing costs by reducing and the eliminating waste.

#2 Salasar Exterior and Contours

Second company on the list is Salasar Exterior and Contours.

Salasar Exterior and Contours is an India based civil construction company engaged in business of exterioir and interior design and civil work.

The company offers commercial premises management activities such as wall painting, furniture making, civil works, and other architectural related solutions.

The company's board on 18 April 2023 approved the stock split of shares in a ratio of 1:10. This means that each share of Rs 10, will now be converted into 10 shares of Rs 1 each.

For example, if before stock split an investor had 10 shares of Rs 10, then after the stock split, he will have 100 shares of Rs 1.

The record date for stock split 03 May 2023.

During financial year 2022, the company recorded a total income of Rs 72 million (m) compared to Rs 121 m reported during previous year. It reported a net profit of Rs 28 m during financial year 2022 as against a net loss of Rs 14 m reported during the financial year 2021.

#3 Sprayking Agro Equipment

Next on the list is Sprayking Agro Equipment.

Sprayking Agro Equipment is an emerging leader in brass parts manufacturing, including brass fittings, brass forging equipment, brass transformer parts, and other customized brass parts. It is the first listed company in SME segment of BSE, manufacturing 100% brass parts.

The company has a global presence in USA, Europe, Australia, Canada, South Africa, UAE, and India.

The company's board announced bonus shares on 21 April 2023.

It will issue bonus shares in a ratio of 2:3. This means two new bonus shares for every three existing shares in the company.

The record date for the same is 25 April 2023. The bonus shares will be credited to the account of shareholders on 04 May 2023.

The company's financial position has slackened in the last three years. Its revenues have consistently declined in the last three years. During financial year 2022, the company's total revenues fell 22%.

Even when we look at the profits, the numbers are displeasing. During the said financial year, the company's profits fell 50%.

The brass industry has been under a lot of pressure ever since the covid-19 period. Brass companies have low margins, lock downs, rising interest rates, and a strengthening dollar reduced the profits of companies.

India is one of the biggest importers of brass in the world. Hence, the weakening rupee has the biggest impact on profit margin of brass companies because input material cost rises significantly. No wonder Sprayking Agro Equipment's profit margin suffered as of late.

#4 Macrotech Developers

Fourth on the list is Macrotech Developers.

Macrotech Developers was formerly known as Lodha Developers. It is among the largest real estate developers in India and has been involved in the real estate business since the 1980s.

Being an Indian multinational real estate company, the company developed residential & commercial properties in Mumbai, Thane, Hyderabad, Pune, and London.

The company commenced operations in Mumbai, developing affordable housing projects in the suburbs of Mumbai. It later diversified into other segments and regions in the MMR and Pune.

In a statement filed with the stock exchange on 16 April 2023 the company announced that the board will meet on 22 April to consider the issue of fully paid bonus share.

Considering the announcement, the board may pay bonus in the month of May.

Rising interest rates took a toll on all real estate companies and Macrotech Developers was no exception.

When the central bank raises interest rates, borrowing costs for buying real estate increases, as most home loans are linked to the repo rate. Thus houses become less affordable which hurts the business of the company.

However, the winds are slowly changing. For the December 2022 quarter, it reported its best-ever Q3 pre-sales performance of Rs 30.4 billion (bn), showing a growth of 16% YoY on better housing demand.

#5 Radhagobind Commercial

The last company on the list is Radhagobind Commercial.

Radhagobind Commercial operations involve trading in fabrics. The company deals with fabrication materials, which consists of embroidery fancy sarees, fabrics, and textile dress materials. It also trades in textile goods and ancillary activities in India.

The company's board, on 24 February 2023, approved the stock split of the shares in the ratio of 1:10. This means that each share of Rs 10, will now be converted into 10 shares of Rs 1 each.

During Q3 of financial year 2023, the company reported a net loss of Rs 0.5 m compared to Rs 0.1 m reported in the year-ago quarter. In the December 2022 quarter as well as the year-ago December 2021 quarter, there was no revenue from operations declared by the company.

Investment Takeaway

It's important to remember that these corporate actions do not guarantee success and investors should conduct thorough research and analysis before making any investment decisions.

It's important to consider the company's financial health, market trends, and other factors that could impact the stock's performance.

Disclaimer: This article is for information purposes only. It is not a stock recommendation and should not be treated as such.

This article is syndicated from Equitymaster.com

(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)

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Vedanta Resources Reduces Gross Debt By $1 Billion

 Vedanta Resources Limited (Vedanta), the parent company of Mumbai-listed mining giant Vedanta Ltd, today said it has paid all its maturing loans and bonds due in this month to reduce its gross debt by a further $1 billion.

Vedanta has now reduced debt by a total of $3 billion since it announced in February 2022 its intention to accelerate deleveraging.

It had announced plans to reduce debt by $4 billion within 3 years.

"Vedanta has thereby achieved 75 per cent of its committed reduction in just 14 months," the firm said in a statement.

The firm's gross debt now stands at $6.8 billion, down from $7.8 billion at the end of March 2023 and from $9.7 billion at the end of March 2022.

"During the balance of FY24, we believe that strong operational performance from our world-class asset base coupled with robust commodity prices will lead to further deleveraging at Vedanta," the statement said. 

(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)

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Indices Rise In Early Trade As Strong Earnings Lift Mood

Equity benchmark indices Sensex and Nifty climbed in early trade on Monday amid mixed global cues.

The 30-share Sensex jumped 179.16 points or 0.30 per cent to 59,834.22 points, while the broader 50-share Nifty rose 46.75 points or 0.27 per cent to 17,670.80 points.

In the Sensex pack, 13 stocks were trading in the green, while the remaining 17 shares were in the negative territory.

The initial gains were led by buying in the counters of Reliance Industries and ICICI Bank, among others. Reliance Industries, ICICI Bank, Wipro and State Bank of India rose more than 1 per cent.

Among the Nifty shares, 23 were trading in the positive zone.

In the Asia Pacific region, stocks were showing mixed trends as Japan's Nikkei 225 was trading in the positive territory, while Hong Kong's Hang Seng and China's SSE Composite Index were trading lower.

On Friday, the US market as well as most of the European benchmark indices closed with gains.

In a pre-market open note, Deepak Jasani, Head of Retail Research at HDFC securities, said Indian markets could open mildly higher, despite mixed Asian markets today and in line with higher US markets on Friday.

Sensex and Nifty had closed on a mixed note on Friday, with the 30-share benchmark index closing marginally higher, while the broader Nifty ended the day in the red.

During the week, investors will also be keeping a close watch on corporate earnings.

Foreign Portfolio Investors (FPIs) were net sellers on Friday as they offloaded domestic equities worth Rs 2,116.76 crore, as per exchange data.

(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)

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Indices Rise In Early Trade As Strong Earnings Lift Mood

Equity benchmark indices Sensex and Nifty climbed in early trade on Monday amid mixed global cues.

The 30-share Sensex jumped 179.16 points or 0.30 per cent to 59,834.22 points, while the broader 50-share Nifty rose 46.75 points or 0.27 per cent to 17,670.80 points.

In the Sensex pack, 13 stocks were trading in the green, while the remaining 17 shares were in the negative territory.

The initial gains were led by buying in the counters of Reliance Industries and ICICI Bank, among others. Reliance Industries, ICICI Bank, Wipro and State Bank of India rose more than 1 per cent.

Among the Nifty shares, 23 were trading in the positive zone.

In the Asia Pacific region, stocks were showing mixed trends as Japan's Nikkei 225 was trading in the positive territory, while Hong Kong's Hang Seng and China's SSE Composite Index were trading lower.

On Friday, the US market as well as most of the European benchmark indices closed with gains.

In a pre-market open note, Deepak Jasani, Head of Retail Research at HDFC securities, said Indian markets could open mildly higher, despite mixed Asian markets today and in line with higher US markets on Friday.

Sensex and Nifty had closed on a mixed note on Friday, with the 30-share benchmark index closing marginally higher, while the broader Nifty ended the day in the red.

During the week, investors will also be keeping a close watch on corporate earnings.

Foreign Portfolio Investors (FPIs) were net sellers on Friday as they offloaded domestic equities worth Rs 2,116.76 crore, as per exchange data.

(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)

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Dollar Bonds Of Adani Ports Up As Company Begins Debt Buyback

The U.S. dollar-denominated bonds issued by Adani Ports and Special Economic Zone rose on Monday, after the company commenced a cash tender offer for a buyback of securities.

On Monday, Adani Ports and Special Economic Zone, part of the beleaguered Adani Group, said it has floated a tender of up to $130 million of 3.375% 2024 maturity dollar-denominated bonds.

The note was the lead gainer among all the group companies.

"The purpose of the tender offer is to partly prepay the company's near-term debt maturities and to convey thecomfortable liquidity position," it said in a statement.

The company has engaged Barclays Bank, DBS Bank, Emirates NBD Bank PJSC, First Abu Dhabi Bank, PJSC, MUFG Securities Asia Singapore Branch, SMBC Nikko Securities (Hong Kong) and Standard Chartered Bank to serve as dealer managers for the offer.

The dollar bonds of Adani Transmission, Adani Green Energy and Adani Electricity Mumbai were trading mixed.

Led by billionaire Gautam Adani, the dollar bonds of group companies had plunged after a U.S. short-seller Hindenburg Research, in a scathing report on Jan. 24, accused it of improper use of offshore tax havens and stock manipulation. The group denied all allegations.

However, India's market regulator is looking into Hindenburg's allegations as well as the group's related party dealings following a Supreme Court directive.

(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)

(Disclaimer: New Delhi Television is a subsidiary of AMG Media Networks Limited, an Adani Group Company.)

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Dollar Bonds Of Adani Ports Up As Company Begins Debt Buyback

The U.S. dollar-denominated bonds issued by Adani Ports and Special Economic Zone rose on Monday, after the company commenced a cash tender offer for a buyback of securities.

On Monday, Adani Ports and Special Economic Zone, part of the beleaguered Adani Group, said it has floated a tender of up to $130 million of 3.375% 2024 maturity dollar-denominated bonds.

The note was the lead gainer among all the group companies.

"The purpose of the tender offer is to partly prepay the company's near-term debt maturities and to convey thecomfortable liquidity position," it said in a statement.

The company has engaged Barclays Bank, DBS Bank, Emirates NBD Bank PJSC, First Abu Dhabi Bank, PJSC, MUFG Securities Asia Singapore Branch, SMBC Nikko Securities (Hong Kong) and Standard Chartered Bank to serve as dealer managers for the offer.

The dollar bonds of Adani Transmission, Adani Green Energy and Adani Electricity Mumbai were trading mixed.

Led by billionaire Gautam Adani, the dollar bonds of group companies had plunged after a U.S. short-seller Hindenburg Research, in a scathing report on Jan. 24, accused it of improper use of offshore tax havens and stock manipulation. The group denied all allegations.

However, India's market regulator is looking into Hindenburg's allegations as well as the group's related party dealings following a Supreme Court directive.

(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)

(Disclaimer: New Delhi Television is a subsidiary of AMG Media Networks Limited, an Adani Group Company.)

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Regulating Crypto Without Global Consensus Will Not Be Effective: Minister

Underlining that global consensus is necessary for regulation of crypto, before India makes any move on it, Union Finance Minister Nirmala Sitharaman on Sunday said a global template may have to be created, and everyone will have to work together on it, otherwise regulating it will not be effective.

The Minister, however, said it does not mean controlling of 'distributed ledger technology', which has its goodness and potential.

"The G20 of which the India is currently holding the Presidency, it was India's proposal and it has been taken on board, I'm glad that the G20 has kept it in its agenda for this year, the IMF has given a paper on crypto currency and the way it can affect the macroeconomic stability. The Financial Stability Board (FSB), which was set up by G20, has agreed to give a report that will also focus on financial stability," Ms Sitharaman said.

"Their (FSB) report and IMF's report are going to be discussed in July when Finance Ministers and Central Bank Governors will meet under the G20, and post that in September there will be a summit of Prime Ministers and Presidents of G20 nations that will be held in India," she said.

The Minister was responding to a question on regulating digital or crypto currency during the interaction with 'Thinkers Forum, Karnataka' in Bengaluru.

The First G20 Finance Ministers and Central Bank Governors (FMCBG) meeting under the G20 Indian Presidency was held during February 24-25 in Bengaluru.

"The underlying principle is, because the digital currencies are completely digitalised and technology-driven, the technology which is very distributed, and some times identity is very difficult to be established, but which has potential, it will therefore have to be acted upon only with all countries coming on board," Ms Sitharaman said.

"No one country individually, in a matter of technology driven, a crypto asset, can effectively control it, because technology doesn't have any borders, it can just pass through. So the very character of it being technology driven requires all countries to be on board, or else it will not be effective," she said.

Further, noting that the understanding in the G20, along with OECD (Organisation for Economic Co-operation and Development) and other organisations like IMF, World Bank and so on, is that a global template may have to be created, the Minister said, "all of us will have to work together on it, otherwise regulating crypto may not be effective." "But that does not mean that we are controlling the technology of -distributed ledger technology-, it has its goodness, potential and own strengths. We keep that in mind," she added.' Highlighting that India is today being observed by the global community for the way in which it steered its own way through the pandemic, Russia-Ukraine war and its spillovers, Ms Sitharaman said, inflation in India today is largely "imported" because of the price of fuel and fertilizers.

"So you are bringing it all in, while your own cause for inflation may be supply side- that inflation in India we are aware of and every government fights it. But today the pressure on inflation in India are largely because of the imported hikes in prices," she said, adding that amid all this Prime Minister Narendra Modi has ensured that people of India will not be put to suffering.

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Regulating Crypto Without Global Consensus Will Not Be Effective: Minister

Underlining that global consensus is necessary for regulation of crypto, before India makes any move on it, Union Finance Minister Nirmala Sitharaman on Sunday said a global template may have to be created, and everyone will have to work together on it, otherwise regulating it will not be effective.

The Minister, however, said it does not mean controlling of 'distributed ledger technology', which has its goodness and potential.

"The G20 of which the India is currently holding the Presidency, it was India's proposal and it has been taken on board, I'm glad that the G20 has kept it in its agenda for this year, the IMF has given a paper on crypto currency and the way it can affect the macroeconomic stability. The Financial Stability Board (FSB), which was set up by G20, has agreed to give a report that will also focus on financial stability," Ms Sitharaman said.

"Their (FSB) report and IMF's report are going to be discussed in July when Finance Ministers and Central Bank Governors will meet under the G20, and post that in September there will be a summit of Prime Ministers and Presidents of G20 nations that will be held in India," she said.

The Minister was responding to a question on regulating digital or crypto currency during the interaction with 'Thinkers Forum, Karnataka' in Bengaluru.

The First G20 Finance Ministers and Central Bank Governors (FMCBG) meeting under the G20 Indian Presidency was held during February 24-25 in Bengaluru.

"The underlying principle is, because the digital currencies are completely digitalised and technology-driven, the technology which is very distributed, and some times identity is very difficult to be established, but which has potential, it will therefore have to be acted upon only with all countries coming on board," Ms Sitharaman said.

"No one country individually, in a matter of technology driven, a crypto asset, can effectively control it, because technology doesn't have any borders, it can just pass through. So the very character of it being technology driven requires all countries to be on board, or else it will not be effective," she said.

Further, noting that the understanding in the G20, along with OECD (Organisation for Economic Co-operation and Development) and other organisations like IMF, World Bank and so on, is that a global template may have to be created, the Minister said, "all of us will have to work together on it, otherwise regulating crypto may not be effective." "But that does not mean that we are controlling the technology of -distributed ledger technology-, it has its goodness, potential and own strengths. We keep that in mind," she added.' Highlighting that India is today being observed by the global community for the way in which it steered its own way through the pandemic, Russia-Ukraine war and its spillovers, Ms Sitharaman said, inflation in India today is largely "imported" because of the price of fuel and fertilizers.

"So you are bringing it all in, while your own cause for inflation may be supply side- that inflation in India we are aware of and every government fights it. But today the pressure on inflation in India are largely because of the imported hikes in prices," she said, adding that amid all this Prime Minister Narendra Modi has ensured that people of India will not be put to suffering.

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Top 5 Logistics Companies In India By Growth

Covid-19 disrupted the functioning of the world and exposed the vulnerabilities and pain points in the global supply chains.

Shortage of workforce, lack of warehousing space, and long and complex supply chains, are few of the many problems the logistics sector faced.

All major global companies are already working towards addressing these problems. They are using technology to automate the processes, reconfiguring complex supply chains, and finding an alternative to China in their supply chain.

In India, the government is investing heavily to expand its road, rail, and port connectivity.

With initiatives such as goods and service tax (GST) and National Logistics Policy (NLP), it further aims to strengthen supply chains across the country.

The National Logistics Policy aims at improving India's trade competitiveness, create more jobs, and build a cost-efficient logistics ecosystem in India.

This bodes well for the organised logistics companies in India. Furthermore, India is one of the top alternatives to China, and the demand for logistics is set to grow dramatically.

Top logistics companies in India are already expanding their capacities to cater to the growing demand. Here's a list of five companies that can benefit the most from this situation.

#1 TCI Express

First on the list is TCI Express, India's leading time-definite express distributor.

The company offers distribution services through various modes of transport and is a market leader with a 7% market share as of December 2022 in India's express distribution.

TCI Express caters to a diversified customer base which includes companies from several industries, such as automotive, pharmaceutical, textiles, engineering, and telecom.

It has built a hub and spoke infrastructure with 900+ owned centres across India, encompassing more than 40,000 pick-up and 50,000 delivery points. This help the company cover over 95% of the pin codes in India.

Through this model, it offers surface, domestic and international air, and e-commerce express services to its customers.

Recently, it launched value-added services such as pharma cold chain, C2C (customer to customer), and express rail services to cater to a larger customer base.

The company currently has around 26 sorting centres, over 500+ express routes, and close to 2,500 feeder routes. This count is set to go up after the operationalising of Pune and Gurgaon sorting centres.

In financial year 2022, the company spent Rs 1 billion (bn) towards capex for the construction and automation of sorting centres. In the next five years, it plans to spend an aggregate of Rs 5 bn on building and automating new sorting centres.

To give its clients more payment options, the company included dynamic QR codes in receivables documentation. As a result, the cash payments were reduced to a great extent and helped the company improve its collection ability.

Increasing offerings and a growing customer base have helped the company improve its revenue despite the pandemic. In the last five years, the company's revenue has grown at a CAGR (compound annual growth rate) of 4.2%.

The net profit meanwhile, has grown at a healthy CAGR of 17.1%. Its return on equity (RoE) and return on capital employed (RoCE) as of the financial year 2022 stood at 24.2% and 32.4%.

Despite incurring a heavy capex, the company has zero debt on its books, indicating strong cash flows.

On top of all this, the company pays regular dividends to its shareholders. In the last five years, its dividend payout ratio has averaged 17.7%.

Recently, the company completed its share buyback worth Rs 750 million (m).

Going forward, the company's efforts to improve operational efficiency and increasing the number of sorting facilities will help in improving customer base and, in turn, the revenue and profitability.

#2 Transport Corporation of India

Second on the list is the Transport Corporation of India.

The company is engaged in the business of providing supply chain, transport, and logistics solutions.

It is a pioneer of multimodal logistics and provides end-to-end logistics and supply chain solutions through multiple modes, including road, rail, and sea, to India, Nepal, Bangladesh, Bhutan, and SAARC countries.

The company follows a hub-and-spoke model with 25 hubs and 900 branches, through which it handles the freight of over 18,000 locations in India and abroad.

At present, it has over 12,000 trucks, 8,000 general-purpose containers, 650 liquid tankers, and six coastal cargo ships in operation. Through this, it serves customers across various industries, including healthcare, chemical, hi-tech, auto, and retail.

With growing online shopping, and the government's logistic policy and infrastructure push, the need for logistics in the country is growing rapidly.

To meet the growing demand, the company plans to increase the fleet of containers, ships, and trucks by spending Rs 1.7 bn. Moreover, it plans to spend Rs 750 m on building warehouses.

The company is also actively working towards automating its operations across the supply chain to increase efficiency.

Coming to its financials, in the last five years, the revenue has grown at a CAGR of 6.7%, driven by a diversified customer base and an increasing proportion of contracted business.

The net profit also grew at a CAGR of 21.2%, driven by high margins from the seaways business and the company's cost-efficiency measures.

Transport Corporation of India pre-paid most of its long-term loans in the financial year 2022, making it a zero-debt company.

Despite having a high budget capex planned, the company's strong cashflows will help it maintain the zero debt status.

The company's return ratios have improved in the past five years. The company currently boasts of a RoE and RoCE of 18.6% and 21.8%, respectively.

It has also paid consistent dividends to shareholders, and the five-year average dividend payout ratio stands at 13.8%.

Going forward, the government's boose to strengthen the domestic supply chain and the company's efforts to capture growing demand will drive revenue and profitability in the medium term.

#3 Aegis Logistics

Next on the list is Aegis Logistics, India's leading oil, gas, and chemical logistics company.

The company is engaged in the business of import, storage, and distribution of liquified petroleum gas (LPG), chemical products, and vegetable oils.

It also launched marine products to provide bunker fuels to ships at Indian ports.

Aegis has a large network of LPG terminals, bulk liquid handling terminals, filling plants, pipelines, and LPG gas stations to deliver products and services.

The company serves a diversified client base which includes big names such as Shell, Reliance, HPCL, BPCL, ONGC, and Bombay Dyeing.

It currently operates its liquid logistics segment through six ports with a total operational capacity of 729 thousand kilo litres (KL).

The LPG segment has a total static capacity of 112 thousand metric tons (MT) with an annual throughput of 9.6 MT.

Aegis has invested heavily in capex and plans to invest more to cater to the increasing demand for LPG products.

The company added 54 thousand KL to its Haldia Port during the financial year 2022 and is adding 20 thousand KL of bulk liquid capacity at its Kochi Port by the end of the financial year 2023.

It also acquired liquid tank terminals with a capacity of 500 thousand KL from Friends Group at Kandla Port for Rs 2.6 bn in 2022.

Apart from this, the board approved a capex of Rs 12.5 bn to add 175 thousand KL bulk liquid capacity and 100 thousand MT of gas capacity.

Aegis also formed a joint venture with Itochu Corporation from Japan to source LPG at a cheaper rate in 2018.

As a result, Aegis had a 15.5% market share in LPG imports in the financial year 2022, which it plans to take to 25% in the next four years.

To add new products to its basket and explore growth opportunities in renewable energy, the company formed a joint venture with the world's leading tank storage company, (Vopak), in 2022,

All these efforts show that the company is geared up for its next leg of growth.

As far as financials are concerned, in the first nine months of the financial year 2023, the company's revenue grew by 158% year-on-year (YoY) on the back of high volumes and price realisation.

The net profit grew by 24.3% YoY due to growth in the high-margin business during the same time.

Despite a heavy capex, the company remains debt-free.

The company also pays consistent dividends and has a five-year average dividend payout of 26.4%.

Going forward, the company's partnership with Vopak and its investment to expand capacity will drive its growth in the medium term.

#4 Allcargo Logistics

Fourth on the list is one of the global leaders in logistics, Allcargo Logistics.

The company operates mainly into three segments that are multimodal transport operations, container freight stations/ inland container depots, and project and engineering solutions.

It is carrying out contract logistics business through Avvashya CCI Logistics, its joint venture.

With a strong network across 180+ countries and 300+ offices covering over 4,000 port pairs across the world, it is one of the leading players in the global less-than-load (LCL) consolidation market.

The company also operates India's widest and strongest network of Container Freight Stations (CFS) and Inland Container Depots (ICD).

In the last five years, the company's revenue has grown at a CAGR of 27%, driven by volume growth across all segments. The net profit also grew at a CAGR of 39.2%.

The RoE and RoCE for the financial year 2022 stood at 27.9% and 31.1%, respectively.

Since 2005 the company has grown through a series of acquisitions. It has acquired seven logistics companies across multiple logistics verticals. It plans to continue to use the same technique to grow its business in the future.

In November 2022, the company announced it would acquire a 30% stake in Gati Kintetsu Express for Rs 4 bn.

In the same month, it announced another acquisition of a German company (Fair Trade GmbH Schiffahrt, Handel und Logistik) for Rs 1 bn.

The company's current debt-to-equity ratio is 0.3x. It plans to maintain it at the same level despite all the acquisitions due to its strong cash flows.

Despite having such high growth plans, the company never failed to pay a dividend to its shareholders. Its five-year average dividend payout stands at 33.6%.

Given its history of successful acquisitions and growing need for logistics across the world, the company is poised for its next leg of growth.

In February 2023, the National Company Law Tribunal (NCLT) approved a demerger of Allcargo, where the company will operate in LCL consolidation, express logistics, and contract logistics segments.

The CFS and ICD segments will be managed by the new company Allcargo Terminals Limited (ATL), and the equipment rental and logistics parks business will be managed by another new company TransIndia Realty & Logistics Parks (TRL).

This reconstruction is being done to de-clutter the organisation and make the company more structured.

#5 Lancer Container Lines

Last on the list is Lancer Container Lines.

The company is in the business of shipping and logistics services in India and overseas.

It offers transport services through a fleet of over 11,000 owned and leased TEU (Twenty Equipment Unit) container ships in over thirty countries, including UAE, Oman, Egypt, LATAM, Europe, and Africa Hinterland.

Apart from this, it also offers shipping and freight forwarding and container trading services.

In financial year 2022, the company added around 1,362 TEU containers and expects to add another 3,000 TEU containers by the end of the financial year 2023 through ownership or a long-term lease basis.

It entered into new geographies, such as the UK and the Mediterranean region, in 2022 and plans to penetrate new geographies and expand its customer base further.

Apart from this, the company is also planning to deepen its relationship with existing customers by providing them with value-added services.

All this shows that this small-cap company has high growth plans for the medium term.

As far as the financials are concerned, it has delivered a stellar performance in the past with revenue and profit growth of 42.2% and 33.3% on a CAGR basis in the last five years. The revenue growth was primarily driven by container, shipping and freight forwarding segments.

Its RoE and RoCE are also high at 39.5% and 47.7%, respectively.

Going forward, the growing demand for cargo transportation via ports and specialised shipping containers, new deal wins, and automation in container shipping will help the company improve its market share in the medium term.

Why should you include logistics stocks in your portfolio?

India has the world's second-largest road and rail network connectivity. Despite this, it ranks only 39^th in the world for total logistics capacity.

This presents a host of opportunities for the Indian logistics sector. Moreover, according to a report, the logistics sector is set to grow at a CAGR of 8% to reach US$ 330 bn by 2025.

The primary drivers of this growth would be technological advancements and fast-developing e-commerce and retail markets.

To add to this, the government is working towards reducing the logistics cost in India from 14% of the gross domestic product (GDP) to 10% in the next five years.

All these show that the sector is poised for growth and presents an excellent investment opportunity.

However, one should treat logistics stocks with the same caution as other stocks as they are exposed to stock market volatility.

So do your due diligence before you consider investing in these stocks.

Happy Investing!

Disclaimer: This article is for information purposes only. It is not a stock recommendation and should not be treated as such.

This article is syndicated from Equitymaster.com

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