Business News

RIL surges over 4% as Goldman raises target

Business News - March 28, 2024 - 7:34am
Mumbai: Shares of Reliance Industries, which have the second-highest weighting in the Nifty 50, surged more than 4% intra-day to touch a near three-week high after Goldman Sachs raised its target price citing higher returns on cash invested, and a change in the mix of capital expenditure.Reliance Industries is currently the largest company in India by market capitalisation, which is a little over ₹20 lakh crore.The brokerage now has a target price of ₹3,400 for the shares of Reliance - up 16% from earlier- and this implies an upside of 14% from Wednesday's closing price of ₹2,983.65.108834174"RIL's consolidated returns are at an inflection point in FY24 and we estimate CROCI (cash return on cash invested) will expand by ~270 bps to 12% in FY27 (highest since 2011)," analysts at Goldman Sachs said in a note to clients.The brokerage also expects the company's operating profit to expand 17% on a compounded annual basis until FY27, majorly driven by the energy business.The last decade saw Reliance investing more than $125 billion in its hydrocarbons and telecom business, both of which have a gestation period of more than five years. The capital expenditure cycle for the 5G technology telecom is also set to be completed this year."We believe the businesses RIL is investing more in the next three years (retail and upstream new energy) are relatively less capex heavy, higher in returns and have a shorter gestation period," the analysts said.Shares of Reliance Industries have already gained more than 15% so far in 2024, hitting its lifetime high of ₹3,024.90 earlier this year.The end to the massive capex cycle will also help Reliance Industries turn free cash flow positive in FY25, while the operating profit is seen expanding 20% on year, driven by a telecom tariff hike, higher retail same-store sales growth and a recovery in margins in the chemicals business.Goldman Sachs has reiterated its 'buy' rating for shares of Reliance. Of the 35 ratings available for the company on Bloomberg, 29 had a 'buy' or equivalent rating, 4 analysts suggested a 'hold' rating for the stock, while 2 recommended a 'sell'. Shares of RIL could rise to ₹3,200-3,300 in the near term, said Atul Chaturvedi, analyst at Antique Stock Broking. He recommends that investors looking to buy the stock should maintain a stop loss of ₹2,850.
Categories: Business News

I don't have money to fight polls: FM

Business News - March 28, 2024 - 12:46am
NEW DELHI: FM Nirmala Sitharaman on Wednesday asserted that investigative agencies are free to chase those who contravene law irrespective of their political affiliation, rejecting any perception that the NDA government is seeking to coerce opposition parties into submission by setting the enforcement agencies after them.Speaking at the Times Now Summit, themed 'India Unstoppable', Sitharaman also said that she was given the option by BJP president JP Nadda to contest in the upcoming Lok Sabha polls. However, she expressed inability on the grounds that "I don't have the kind of money" required to fight polls, among others. The minister is a Rajya Sabha member from Karnataka."After thinking over a week or ten days, I just went back to say... maybe not. I do not have that kind of money to contest. I also have a problem whether it is Andhra Pradesh or Tamil Nadu. It's also going to be a question of various other winnability criteria that they use... Are you from this community or are you from that religion? Are you from this? I said no, I do not think I am going to be able to do it," she said.As for probe agencies, she said: "Law pursues those who disobey it." Just because an offender belongs to an opposition party doesn't give them immunity from being accountable for illegal acts, she stressed. She added that the probe agencies' inaction against the UPA's scandals had then earned them the moniker 'caged parrot'. "The caged parrot is now let to do its job," she said.Addressing the gathering, Times Group MD Vineet Jain said India is unstoppable and its vibrant democracy has long stood as a "beacon of hope and inspiration". "From the political arena to the global economic stage, from the diplomatic corridors to military frontiers, India is making its mark and shaping the future of the world," he said."With each election cycle, the citizens of India have exercised their democratic rights, ensuring their voices are heard and choices respected. This democratic spirit not only strengthens the fabric of our nation, but also serves as a model for emerging democracies," he added.
Categories: Business News

A new intel agency for mfg, Made-in-India?

Business News - March 28, 2024 - 12:11am
The Centre will soon assess India's manufacturing prowess through a centralised intelligence unit or a knowledge storehouse and develop key performance indicators on metrics such as value-added, export performance, technological prowess, supply chain effectiveness, labour productivity and access to global market.The exercise is aimed at significantly ramping up the manufacturing sector and making it globally competitive."The idea is to conduct a comprehensive analysis of the domestic market to identify products with high demand and growth potential and a value chain analysis to understand products which can add value," an official said.The proposed intelligence unit would study the impact of schemes launched by the government aimed at lifting the share of manufacturing in GDP to 25% by 2047 from about 17% currently.In addition to Production Linked Incentive (PLI) schemes worth ₹1.97 lakh crore, the government started the Make in India initiative and the Phased Manufacturing Programme (PMP) to boost local production and encourage export substitution. 108829512Unit to study top 10 nationsAs part of the exercise, the Department for Promotion of Industry and Internal Trade (DPIIT) will identify champion sectors, develop a risk register with anticipated risks and responses, and assess and monitor the impact assessment of PLI Schemes. A central information repository for PLI schemes through periodic consultations and information gathering exercises with stakeholders would be developed.The intelligence unit will study the top ten countries to understand their strategies and contribution to global manufacturing output. It would support the Steering Committee for Advancing Local Value-Add and Exports Research Analysis, Programme Implementation, and Data Intelligence Unit (SCALE RAPiD) which comprises representatives from various industry bodies and officials from commerce and industry, and other ministries.The exercise also entails evaluating India’s export potential by identifying products with global demand and giving inputs during foreign trade negotiations with the aim of reducing trade barriers.The intelligence unit will compare global best practices to assess feasibility of implementation and impact of recommendations provided by the SCALE committee. The department will hire a consultancy agency for the exercise.The official cited above said the plan also includes evaluating the impact of policies and schemes aimed at enhancing manufacturing competitiveness, and identifying areas where reforms can be undertaken to lower regulatory burden for promoting ease of doing business. Assessment of incentive schemes such as tax breaks and access to credit to attract investments in the chosen sectors are also likely to be considered.
Categories: Business News

Record-breaking SRH beat MI by 31 runs

Business News - March 27, 2024 - 11:31pm
Categories: Business News

Go First lenders yet to decide on bids

Business News - March 27, 2024 - 11:11pm
MUMBAI: A revival of Go First Airlines is set to get prolonged with creditors to the bankrupt airline likely to seek a third extension to the resolution timeline beyond the April 4 deadline even as formal negotiations with two final bidders are yet to commence.Both bidders had increased their bids earlier this month after initial scrutiny by lenders, necessitating an extension to complete negotiations, people familiar with the process said."The committee of creditors (CoC) will meet either this week or early next week to finalise the extension of the timeline since a few more days will be needed to scrutinise and finally decide on the bids that are currently on the table," said a person aware of the process.To be sure, a fresh extension will take the timeline beyond the outer deadline of the bankruptcy code of 330 days, but lenders say more time is needed to complete the process.Sharjah-based aviation company Sky One helmed by Jaideep Mirchandani, and domestic airline SpiceJet promoter Ajay Singh along with an entity called Busy Bee Airways, which is owned by Nishant Pitti - owner of online travel portal EaseMyTrip, are the two bidders in the fray.Resolution professional Shailendra Ajmera and lead lender Central Bank of India did not respond to emails seeking comment.Both bidders have included future arbitration claims from Go First's proceedings against engine maker Pratt & Whitney (P&W) in their respective resolution plans. "Sky has offered Rs 735 crore upfront in cash and up to 20% of arbitration claims in the future while Ajay Singh has offered to pay Rs 650 crore over 12 months and 10% of arbitration claims," said a second person cited above.Both bidders had increased their cash component earlier this month after initial talks with lenders. The Ajay Singh-led consortium had earlier proposed to pay Rs 290 crore in cash while Sky One had initially offered Rs 410 crore upfront to lenders, according to media reports."Lenders will prefer a higher proportion of upfront cash and mostly paid immediately than an elongated payment schedule. There is uncertainty over how the arbitration proceedings will go which is a big part of both the bids. Also, the company has a land parcel which has been kept as collateral with banks whose value has also been appropriated by bidders. All these issues will have to be clarified if the process has to go forward," said the first person cited above.
Categories: Business News

Demand for premium travel shoots up

Business News - March 27, 2024 - 11:03pm
Categories: Business News

Weaponisation of space inevitable reality

Business News - March 27, 2024 - 8:27pm
IAF Chief Air Chief Marshal V R Chaudhari on Wednesday said as nations increasingly rely on space-based assets for building strategic advantage, "militarisation and weaponisation" of space have become the "inevitable reality". He said this in his address at a seminar on "Aerospace Power in Future Conflicts" at Subroto Park here. "Through the annals of human history, the skies have often been regarded as realms of wonder and exploration, where dreams take flight and boundaries dissolve into the vast blue expanse," he said. Yet, beneath this calmness lies a domain "fraught with competition where contest for aerial superiority" has shaped the destiny of many nations and decided the outcome of many wars, the chief of the Indian Air Force (IAF) said. "As we navigate these uncharted skies, air power being a key component of national power, would undoubtedly play a pivotal role and also serve as a symbol of national strength, a tool for peace and cooperation," he said. Air Chief Marshal Chaudhari said over the last few decades, understanding of the military operational environment has "significantly transformed" from primarily a force, time and space-driven battlefield to an arrangement of systems capable of simultaneous and independent operations across multiple domains. "We all need to acknowledge that the wars of the future will be fought differently," he said. Future conflicts will be characterised by a blend of simultaneous application of kinetic and non-kinetic forces, high-levels of battle space transparency, multi-domain operations, a high-degree of precision, enhanced lethality, a compressed sensor-to-shooter cycle, and of course, all under intense media scrutiny, he also said. In his address on Wednesday, Air Chief Marshal Chaudhari added that space has also emerged as a "critical domain for conduct of military operations", wherein seamless communication, navigation and surveillance capabilities would enhance survivability of modern military forces. "As nations increasingly rely on space-based assets for building strategic advantage, militarisation and weaponisation of space has become an inevitable reality," he said. Air and space control along with denial capabilities "will prove to be decisive" for furtherance of all operations. For that to happen, "we would need to gain and maintain not only information superiority but also decision superiority", he said. "Emerging technologies like CMOS (complementary metal oxide semiconductor) sensors, smart decision support matrices, manned-unmanned teaming and robust and redundant C2 networks are critical capabilities that need to be developed," the IAF chief added.
Categories: Business News

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