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Mumbai: Sensex 80893 and Nifty 24592 created new history again over the weekend, as the corporate results season got off to a good start with Tata Consultancy Services results for the quarter ended June 2024. Foreign portfolio investors-foreign funds have continued the record rally in the market with aggressive buying led by IT stocks. Expecting a positive factor of economic growth going forward through good progress of monsoon in the country and strong growth in the agricultural sector with encouraging provisions in the Union Budget this time, the funds have aggressively made index-based purchases. But on the other hand, there has been profit booking in small, midcap stocks over the weekend. Valuations have become expensive in many stocks and this factor has now become a matter of concern in the market, but ignoring this factor, the huge rally in many stocks is making investors regret and buy at high prices. Here it is once again warned not to ignore the risk of overvaluation, as the boom in the market has become unbridled, now the exchange and capital market regulatory system have also started taking active steps which can pose a risk to investors and the system. On the one hand, an exercise has been started to increase the lot size to protect retail traders from going bankrupt in F&O, while on the other hand, a big cut in the list of acceptable collateral-mortgage has started showing red light. Stocks. If these shares become unacceptable as mortgage at the exchange level, then what will happen at the level of banks in the coming days will also have to be considered. Here, other parameters apart from valuation have also been put forward, but one should be careful in accepting that investing in unpopular stocks can also be risky. Next week, the stock markets will be closed on the occasion of Muharram on 17 July 2024. So in the next four trading days week, now corporate results will be seen on 15th July 2024 HDFC AMC, 16th July 2024 Bajaj Auto, 17th July 2024 Asian Paints, LTI Mindtree, 18th July 2024 Infosys, Mastek, Persistent Systems, Tata Technologies 19th July 2024 BPCL, JSW Steel, UltraTech Cement, Wipro results 2024. Along with this, speculations about the progress of monsoon and the provisions of the Union Budget to be presented on 23rd July, due to these factors, Sensex can reach between 81777 and 79333 and Nifty between 24888 and 24111 in the next four trading days week.
Arjun's eye: Kalyani Investment Company
BSE (533302), NSE (KICL) listed, Rs 10 paid up, 75 per cent promoter stake of Kalyani Group worth over $2.5 billion, a company formed by amalgamation of three wholly owned subsidiaries of Kalyani Investment Company Limited investment undertaking through demerger of Kalyani Steels Limited and investment business of Kalyani Steels Limited. KICL was floated on 25 June 2009 as a public limited company under the Companies Act 1956. The undertaking transfer took place on 31 March 2010 with the merger of investment division of Kalyani Steels Limited and Chakrapani Investments & Trades Limited, Suraj Mukhi Investment & Finance Limited and Gladiola Investments Limited into this company after the Bombay High Court approved the scheme of arrangement.
Kalyani Investment Company is an investment company having a portfolio of investment holdings in both listed and unlisted companies across diverse sectors such as forging steel, power generation, chemicals and banking. The company is part of the Kalyani Group. The company is a leading investment company with more than 60 per cent of its net assets as investments in equity shares of group companies. While more than 90 per cent of net assets are investments in equity/preference shares, debentures/debt of group companies.
Kalyani Group: Established in the mid-1960s, Kalyani Group is an Indian multinational company with advanced technology, engineering and manufacturing capabilities in industries such as engineering steel, automotive, industrial renewable energy, urban infrastructure and specialty chemicals. The company has end-to-end capabilities and manufacturing in India, Germany, Sweden and China. Kalyani Group has joint ventures with major global corporates such as Meritor (USA), Carpenter Technology Corporation (USA), Maxion Wheels (Brazil), FAW Corporation (China), Alstom (France) and David Brown (UK). The Group is the market leader in forgings in the world and the largest exporter of forgings from India. The major companies of the Group include Bharat Forge, KCTI, Kalyani Technoforge, Kalyani Global, etc.
Investments in Unlisted Companies: The company's bank balance as on March 31, 2024 is Rs 183 crore and investments in unlisted companies are (1) KCL Holding Rs 357 crore, (2) Khed Economic Rs 127 crore, (3) Info Structure Rs 38 crore and (4) other investments Rs 363 crore, totaling Rs 1068 crore.
Investments in Listed Companies: (Value as on July 12, 2024): The Company's investments in listed companies as on July 12, 2024 are (1) Bharat Forge Limited 6,33,12,190 shares (as per share price of Rs. 1619.20) Investment Value of Rs. 10,251 crore (2) Hikal Limited 3,86,67,375 shares (as per share price of Rs. 360.85) Investment Value of Rs. 1395 crore (3) BF Utilities 61,95,046 shares (as per share price of Rs. 835.25) The value of investment is Rs. 518 crore, taking the total investment to Rs. 12,164 crore. Thus, as on 31st March 2024, the bank balance, investments in unlisted companies is Rs 1068 crore and the current value of investments in shares of listed companies is Rs 12,164 crore, giving a total value of Rs 13,232 crore. As per the equity of 43,65,306 shares of Kalyani Investment Company Limited, the value per share is Rs 30,311. This stock is currently available on NSE, BSE at Rs 6311 on 12th July 2024 at a valuation of only 20.84 per cent.
Book Value: Rs 10,294 in March 2021, Rs 11,878 in March 2022, Rs 12,989 in March 2023, Rs 19,000 in March 2024.
Share holding pattern: 75 per cent of Kalyani Group is held by promoters, 8.82 per cent is held by HNIs, corporate bodies and FIIs and 8.82 per cent is held by others and 16.18 per cent is held by retail investors with individual shareholdings less than Rs 2 lakh.
Consolidated Financial Results:
(1) Full Year April 2022 to March 2023: Net Income Rs 55.68 crore and Income from Associates Rs 24.59 crore Total Income Rs 80.27 crore, Net Profit Margin-NPM 72.26 per cent Earnings per Share-EPS Rs 133.05. Recorded a net profit of Rs 58.8 crore.
(2) Full year April 2023 to March 2024: Net Income Rs 74.6 crore and from Associates Rs 21.83 crore Total Income Rs 95.89 crore Net Profit from NPM 73 per cent Rs 70.5 crore Earnings per share Rs 160.48.
(3) Full year April 2024 to March 2025 expected: Gross revenue from NPM expected to be Rs 117 crore, net profit expected to grow 74.35 per cent to Rs 87.30 crore, earnings expected to be Rs 200 per share.
Thus (1) The author has no investment in the shares of the above company. Authors may have direct or indirect personal vested interests in the research sources. Consult a qualified investment financial advisor before making any investment decision. The author, Gujarat News or any other person shall not be responsible for any potential loss on investment. (2) Kalyani Group has 75% promoter stake worth over $2.5 billion (3) Bank balance as on 31st March 2024 and investments in unlisted companies of Rs 1068 crore and investments in shares of listed companies as on 12th July 2024 of Rs 12,164 crore with a total value of Rs 13,232 and valuation per share of Rs 30,311. Shares with Rs 10 paid up at Rs 6311.30 on BSE on 12th July 2024 (only 20.84 per cent on NSE). The valuation is being at realised price.
