#EBITDA #MARGIN

EBITDA margin for FY24 improved to ~66.8%. During FY23, EBITDA margin declined by 210 bps and stood at 61.5%. The company continues to enjoy a healthy EBITDA margin due to high degree of operating leverag

#PAT #MARGIN

PAT margin for FY24 stood at 33.6%, an improvement by 88 bps YoY. During FY23, PAT margin declined and stood at 32.7%.

#ROCE

In FY24, the ROCE is expected to improve. In FY23, PBIT stood at ~₹2,037 cr and capital employed stood at ~₹5,747 cr.

#ROE

In FY24, ROE is expected to improve. In FY23, the ROE declined to 42.93% on account of decline in profitability. The net worth of the company has been increasing over the years on account of increased retained earnings.

#DEBT TO #EQUITY

As on 31st March 2024, the debt stood at ₹16,680 cr. As on 31st March 2023, the debt stood at ₹9,300 cr. The ratio increased marginally to 3.32x. Entire debt of the company is in the form of shortterm liability borrowed via commercial papers.

#PE #RATIO

ICICI Securities is currently trading at a TTM PE multiple of 14.89x. The shareholders of ICICI Securities will be issued 67 equity shares of ICICI Bank for every 100 equity shares of ICICI Securities. There are business synergies between ICICI Bank and ICICI Securities, a consolidation by way of merger is not permissible on account of the regulatory restrictions.

#COMPANY #POTENTIAL

The domestic broking industry’s revenue registered a CAGR of ~10.5% between FY15-20 and reached ₹22,500 crore, on account of a ~34% increase in turnover in equity markets during the same period. In the next five fiscals, the industry is expected to grow at a CAGR of ~11%-12%. (CRISIL) • The industry is expected to see strong growth going ahead, after facing difficulties on account of pressure on yields and changing regulatory landscape. The growth will mostly be due to increased scalability and reach of players to untapped markets, especially lower tiered cities, leveraging their highly agile digital models. • This will be adequately supported by the growing turnover levels across the equity derivatives and cash segments. These segments are expected to cumulatively grow at a 23-25% CAGR upto FY25. This growth will be driven mainly by the higher investor awareness, increased retail interest across market segments, easier and faster means to access the markets and continuing FII inflows. • India’s wealth management industry (only of banks and broking companies offering such services) was ₹17.6 lakh crore in FY20. It is projected to grow at 11-13% CAGR to ₹31 lakh crore by FY25, supported by a growing population of affluent individuals, increasing shift from physical assets to financial assets and increasing complexity of assets amid rising competition. (CRISIL) • The total life insurance premium is expected to grow at 11%-13% CAGR during FY20 to FY25, from ₹5,68,400 cr to ₹9,75,000-10,25,000 crore. An improving economy, post the low growth in FY21 owing to the pandemic, increase in financial savings, and growing awareness of insurance would be the key catalysts.

#FUTURE #PLANNING

The management would continue to reduce the cyclicality component which is brought about by cash broking and capital market business. This would be done through diversification by generating meaningful revenue from different sources, going forward. • The company would also look for cost optimization measures to minimize the impact on the profits, going forward. • They would focus on wealth management, derivatives, insurance, loans as their key levers for growth, going forward. • They also guided capex of ₹100 cr in the next 3-4 quarters, towards technology spend. • In the wealth management business, they would be expanding their geographical presence and strengthening their RM footprint. • The company has tied up with Tata Capital for LAS and personal loans. • The guidelines regarding upstreaming of client funds would not have any impact on the company as they don’t do bank guarantee. • With respect to delisting, the company is waiting for the approval from exchanges which is the first step for the process of delisting post which the company would be taking other approvals. They anticipate the entire process to be completed in next 1-2 quarters

Icici securities 700-785
Expected level 900
Support 650

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Union Ministry of Railways has been allocated ₹2.55 lakh crore for the financial year 2024-25, up by 5.8% from last year's allocation of ₹2.41 lakh crore

Here are the list of Railway Stocks which are focus

RAILWAY COACHES & WAGONS

1. Jupiter Wagons Ltd
2. Titagarh Rail Systems Ltd
3. Texmaco Rail & Engineering Ltd

RAILWAY COACHES INTERIORS

1. Autoline Industries Ltd
2. Amber Enterprises India Ltd
3. Oriental Rail Infrastructure Ltd
4. Omax Autos Ltd

RAILWAY WHEELS & TRACKS

1. Steel Authority of India Ltd
2. Hilton Metal Forging Ltd
3. Bharat Forge Ltd
4. Ramkrishna Forgings Ltd
5. Balu Forge

RAILWAY POWER PROJECTS

1. BCPL Railway Infrastructure Ltd
2. Power Mech Projects Ltd
3. Kalpataru Projects International Ltd
4. Kernex Microsystems (India) Ltd

RAILWAY POWER PACK

1. TD Power Systems Ltd
2. Apar Industries Ltd
3. Bharat Electronics Ltd
4. Elgi Equipments Ltd
5. ABB India Ltd
6. Hitachi Energy India Ltd

RAILWAY CABLES & WIRES

1. DP Wires Ltd
2. KEI Industries Ltd
3. Paramount Communications Ltd
4. NRB Bearings Ltd
5. Timken India Ltd

RAILWAY FORGINGS

1. Larsen & Toubro Ltd
2. Balu Forge Industries Ltd
3. Bharat Forge Ltd
4. Ramkrishna Forgings Ltd

Other Railway Stocks

1. ARSS Infrastructure Projects Ltd
2. K&R Rail Engineering Ltd
3. Container Corporation Of India Ltd
4. Indian Railway Finance Corporation Ltd
5. Indian Railway Catering & Tourism Corporation Ltd

RAILWAY ENGINES & Coaches

1. Integra Engineering India Ltd
2. GE T&D India Ltd
3. Siemens Ltd
4. BEML Ltd

RAILWAY WAGONS

1. Jindal Saw Ltd
2. Cimmco Ltd
3. JITF Infra Logistics Ltd

RAILWAY PROJECTS & Metro Projects

1. KEC International Ltd
2. Rail Vikas Nigam Ltd
3. Larsen & Toubro Ltd
4. NCC Ltd
5. Reliance Infrastructure
6. Adani Enterprises Ltd
7. GR Infraprojects Ltd

RAILWAY SECURITY SYSTEMS

1. Kaynes Technology India Ltd
2. Siemens Ltd
3. HBL Power Systems Ltd

RAILWAY ANCILLARY - Bearing & Others

Alicon Castalloy Ltd
Porwal Auto Components Ltd
Omax Autos Ltd
Cosmic CRF Ltd
Hind Rectifiers Ltd
Genesys International Corporation
Integra Engineering India Ltd
Frontier Springs Ltd
Nelcast Ltd
Escorts Kubota Ltd
Simplex Castings Ltd

RAILWAY NETWORK SYSTEMS

1. Avantel Ltd
2. Railtel Corporation of India Ltd

RAILWAY INFRASTRUCTURE

1. Rites Ltd
2. Ircon International Ltd

OTHER RAILWAY PROXIES

1. Jindal Stainless Ltd
2. Jadeesh & Vismaya
3. Focus Lighting Fixtures Ltd
4. MIC Electronics Ltd
5. Esab India Ltd
6. Ador Welding Ltd
7. Rasi Electrodes Ltd

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🌠Top 3 Mining Equipment Stocks in in the world 🌠

India's mining sector grew by 7.5% in FY24, with production of iron ore and limestone recording high growth during the year.

This momentum is expected to continue even in the financial year 2025, driven by growth across all key sectors, including the automotive, construction, power generation, and steel industries.

1️⃣ BEML

2️⃣ Electric Guitar PLC

3️⃣ TEGA

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Arvind Limited study report

Arvind Limited incorporated in 1931 is one of the India’s leading vertically integrated textile company. It belongs to the Arvind Lalbhai Group which is a diversified conglomerate having presence in textiles, apparel retailing, engineering, wastewater treatment and real estate sectors. In 2018, the brand retail and engineering businesses was demerged into separate entities namely Arvind Fashions ltd and Anup Engineering ltd respectively. This demerger helped the company to scale up its core textile business in both domestic and international markets. The company is headquartered in Ahmedabad, Gujarat. It has its facilities in Naroda, Santej, Khatraj, Bangalore and Pune. It is a prominent player in denim, woven & knits, garmenting and advanced materials. Textile segment: • Denim – It is the pioneer of denim in India since the early 1980s with supply to several iconic brands across Europe, US and Asia. The company produces about 100 million meters of fabrics and 6 million pairs of jeans each year. • Woven – The company is a one stop shop facility which deliver creative and high-quality fashion concepts in formal and casual shirts, tops & dresses, trousers and jackets across color woven, indigo, solid and print categories. It is evolving in this segment since 1931. It produces about 130 million meters of woven fabric annually. • Garments – It is the integral part of the company’s verticalization strategy. The garmenting facilities are located in Karnataka, Ranchi, Ahmedabad area and Ethiopia. It makes denim jeans, casual & formal shirts. It has a dedicated division for knits essentials that covers a wide range of garments. It cater mainly to the US and the EU market and manufacture about 10 million jeans per year. Being vertically integrated, the shirting division is equipped with a capacity to produce 11 million casual and formal shirts per year. Arvind knits garment division produces almost 20 million pieces per annum.

#SALES #GROWTH

In FY24, the revenue de-grew by ~8% due to lower realization as decrease in raw materials and input costs drove down prices, however, AMD segment continued to witness strong momentum. In Q4 FY24, volume across business segments of textile and AMD division clocked a healthy growth on a YoY basis which led to a healthy revenue growth of 10%. During Q4 FY24, the revenue includes sale of land of ₹32 cr. In FY23, the volumes in the woven segment continued to remain strong, while denim and garments volumes saw reductions. The realization was higher for both denim & wovens by 25% and 18%, respectively. 5 Year CAGR: 1.6%

#EBITDA #GROWTH

In FY24, EBITDA witnessed an improvement of ~6% despite lower sales. This was driven by improvement in AMD business. In Q4 FY24, the textile business witnessed higher volumes on a YoY basis. In Q2 FY24, the inventory correction cycle bottomed out among the key export customers. In October 2023, the customers started placing orders in small lots, closer to the actual demand. During Q4 FY24, the EBITDA includes sale of land of ₹6 cr. In FY23, there was contraction in EBITDA mainly on account of higher raw material prices. The average cotton prices stood at ₹214 per kg for FY23 as compared to ₹140 per kg for FY22. However, it was partially offset by good performance in the AMD segment. 5 Year CAGR: 3.4%

#PAT #GROWTH

In FY24, the net profit declined by 15%. It was impacted due to high base effect on account of exceptional item in FY23. In H1 FY24, the net profit was subdued on a YoY basis due to unfavorable consumer demand. Effective tax rate for FY24 stood at ~24%. In FY23, the net profit after tax stood at ₹415 cr, up by 56% YoY reflecting the lower tax outgo on account of losses due to sale of subsidiary shares and migration to the 25% tax regime. Effective tax rate for FY23 stood at ~15% v/s 36% in FY22. 5 Year CAGR: 8.2%

#EBITDA #MARGIN

In FY24, the margin improved for both textile and AMD business. In Q4 FY24, the textile margin improved on a YoY basis on account of softening of input cost, efficiency gains in garmenting and better product and customer mix. In FY23, EBITDA margins remained flat at ~10% levels. The textile margins stood at 9.8% as against 10.7% in FY22. It was impacted due to slightly lower volumes as well as the fact that raw material prices were higher. The capacity utilization of garments & denim segment were low which impacted the absorption of the fixed overheads expenses. AMD continued to deliver strong growth in margins. EBITDA margins for this business improved to 13.2% as compared to 12.5% FY22.