Rounaq Bakshi notes

  Dollar down 10% in first half of 2025, biggest fall since early 1970s The US dollar languished at its weakest against the euro since September 2021 as President Donald Trump's spending bill stoked fiscal worries and uncertainty around trade deals continued to weigh on sentiment. Investors have also started wagering on a quicker pace of monetary policy easing by the Federal Reserve this year ahead of a slew of US economic data  Spurred dollar-selling, leaving the euro perched at a near four-year high of $1.179.  Sterling was steady at $1.3737, not far from the three-and-a-half-year high it touched last week, while the Japanese yen firmed to 143.68 per dollar.  The yen has gained 9% in the first half of the year, its strongest performance since 2016. The dollar index, which measures the US currency against six others, slipped to 96.688, its lowest since February 2022. Investors are grappling with uncertainty over the US Senate's efforts to pa...

  IDFC First Bank Eyes Rs 6 Lakh Cr In Deposits, Rs 12,000 Cr Profit By FY29 IDFC First Bank unveils vision 2.0, targets ₹6 lakh crore in deposits Looking ahead, Vaidyanathan outlined the bank’s ambitious Vision 2.0, targeting significant growth by FY 2029. The vision includes scaling customer deposits to approximately Rs. 6,00,000 crore, expanding the loan book to around Rs. 5,00,000 crore, and achieving a profit after tax (PAT) in the range of Rs. 12,000-13,000 crore. "We are committed to maintaining high standards of corporate governance as we pursue these goals," Mr. Vaidyanathan assured shareholders. IDFC First Bank has outlined an ambitious plan under its Vision 2.0, aiming for ₹6 lakh crore in deposits and ₹5 lakh crore in loans by FY 2029, as part of its efforts to become a leading bank in India. “We are targeting around ₹6,00,000 crore in deposits, ₹5,00,000 crore in loans, and ₹12,000 crore in profit by FY 29,” said V Vaidyanathan, MD and CEO of IDFC First Bank The ...

  DSP NIFTY 50 EQUAL WEIGHT ETF Why you should invest in equal-weight funds? "Investors looking for balanced diversification & anti-momentum ways to play equity index funds can consider buying units of equal weight index funds tracking Nifty 50 for their core portfolio. You get the same set of top-quality stocks that the bluechip baskets have, but with an important twist - equal weight for all."  – The Hindu BusinessLine A unique 'zero-bias' strategy  Invests equally in each stock without any bias, no fund manager 'thinking' or emotions involved Top 50 Indian Companies  This ETF will replicate the Nifty 50 Equal Weight TRI, a derivative of the Nifty 50 Index Magic Formula for Wealth Creation - An Equal-Weighted Index "In a tense cricket match, while defending a low total, a calm captain will show faith in the bowler, motivate the fielders & expect equal effort from all players. It is not about just the 'heavyweight' stars, but all players ...

  Indian Metals & Ferro Alloys Limited : Less than 10 PE  IMFA is India's largest, fully integrated producer of high quality ferro alloys with 190 MVA installed furnace capacity backed up by 204.55 MW captive power generation and extensive chrome ore mining tracts Long experience of the promoters; company one of the largest exporters of ferro chrome The promoters have an experience of more than five decades in operating / managing ferro-chrome plants. IMFA is one of the leading domestic producers and exporters of ferro chrome.  The total installed capacity is 190 MVA across six furnaces located at two manufacturing sites in Odisha.  IMFA exports ~90% of its total annual production.  The long-term volume contracts that IMFA has with some of the global leaders in the stainless-steel industry, mitigate demand risks to an extent. Chrome ore and power are the two most important cost drivers of ferro-chrome producers, apart from met (metallurgical) coke.  IMF...

Allcargo Gati Limited:  ‘Rating watch with developing implications’ due to ongoing composite scheme of arrangement for restructuring businesses of Allcargo Logistics Rationale and key rating drivers  The rating assigned to the fixed deposit (FD) programme of Allcargo Gati Limited (AGL) continues to remain on the ‘Rating watch with developing implications’ due to ongoing composite scheme of arrangement for restructuring businesses of Allcargo Logistics Ltd (ALL, rated CARE AA- (Rating watch with negative implications) / CARE A1+ (Rating watch with negative implications) and AGL.  Per the scheme, the ISC business, which contributes over 85% of revenue and EBITDA of ALL will be demerged into a separate entity, Allcargo ECU Limited. (AEL).  This would include the India part of ISC business and international subsidiaries held under the ECU Worldwide NV.  The remaining entity, ALL, will hold the Express and Contract Logistics Business.  Transfer of contract logis...

Parag Milk Foods: whey protein line under the Avvatar brand, the management aims to grow the category at 30%-35% CAGR Founded in 1992, Parag Milk Foods Limited (PMFL) is one of the largest private dairy companies in India.  The company has captured a leading market share in packaged Ghee and Cheese, commanding a 22% and 35% market share in the categories, respectively through its popular brands “Gowardhan Ghee” and “Go Cheese”.  While Ghee contributed 31.2%, Cheese contributed 24.2% to the company’s revenue in FY23 and remain the core category products for PMFL.  PMFL has further strengthened its leadership position in these categories with a 27% and 17% YoY growth, respectively in ghee and cheese over the last 2 years.  Together, the value-added products of ghee, cheese, curd and paneer contributed to ~68% of PMFL’s revenue in FY24.  PMFL procures milk from the states of Maharashtra, Tamil Nadu, Karnataka and Andhra Pradesh, and has a pan-India presence spread ...

Titan Company: jewellery segment accounts for almost 90% of Titan’s consolidated operating income  Market leadership position in the branded jewellery and wristwatch industries with a large scale of operations –Titan has four  operating  segments in  its  retail  business –jewellery,  watches  and  wearables,  eyecare  and  fragrances  and  fashion accessories.  Planned retail expansion and regular new product launches are through the subsidiary, Titan Engineering & Automation Limited (TEAL).  While the jewellery segment accounts for almost 90% of Titan’s consolidated operating income and EBIT, the other consumer retail segments and the engineering segment provide diversification and are likely to drive business growth over the medium term.  The company maintains a geographically diversified retail presence with more than 3,300 retail stores as on June30, 2025, including 24overseas jewellery stores ...

Dalmia Bharat Sugar and Industries: largest ethanol producers in India The company increased its distillery capacity from 140 KLPD in FY 2017-18 to 850 KLPD in FY 2023-24 The increase in distillery capacity in the last few years was in response to the National Biofuel Policy that liberated the country’s demand appetite on the one hand and empowered sugar manufacturers to switch from sugar manufacture to ethanol production on the supply side. Debt-equity ratio was 0.13 and the company had 469 Crore of cash on its books as on March 31, 2024.  The consolidated output from the company’s distilleries is poised to transform the company into one of the largest ethanol producers in India. Cane sourcing:  The Company procures cane from around 2,00,000 cane growers (small and medium scale) and a cane area of around 1,20,000 hectares across five manufacturing units (three in Uttar Pradesh and two in Maharashtra).  Around 70% of the cane was procured at the mill gate in FY2023-24, ma...

  Star Health and Allied Insurance Company:  retail health insurance market share of 32% Star Health and Allied Insurance Company Ltd. (Star Health Insurance), India’s largest retail health insurance company   Star Health and Allied Insurance Registers INR 430 crores PAT in H1FY25 For H1FY25, the operating expense to GWP ratio stood at 15.6%, reflecting effective cost control compared to 17% in H1FY24 with an Expense Ratio at 30.8%.  The solvency ratio also remained strong at 2.24x, exceeding the regulatory minimum requirement of 1.5x. GWP growth in H1-FY25 higher than average health industry growth Investment assets grew by 17.2% and reached INR 16,431 crores as on 30-Sep 2024, with an investment income of INR 354 crores.  The combined ratio in Q2FY25 stood at 103% and 101% in H1 FY25; the Company’s PAT for Q2FY25 stood at INR 111 crore.  The Company retained its leadership position in retail health insurance, with a market share of 32% and among SAHI...

India Pesticides: generated ~40% revenue from exports in FY24 Diversified Product Portfolio  IPL has ~28-30 molecules (technical) registered in India.  The domestic product portfolio is dominated by a few off patent old generic molecules, leading to moderate sales concentration risk.  The company is continuously investing in its research and development capabilities to develop new molecules, which are expected to reduce its dependence on old molecules.  IPL has also registered its products (Captan and Folpet) for exports in 25 countries across America, Europe, Asia and Australia, which is a step towards reducing the company’s dependence on domestic markets.  The company has a distribution network consisting of over 4700 dealers with 20+ sales depots and sales force in place for marketing across Gujarat, Rajasthan, Maharashtra, Andhra Pradesh, Madhya Pradesh, Punjab, Haryana, and Uttar Pradesh, among others.  Comfortable financial risk profile, despite moder...