- 10/27/2023
-Indian markets mimic global sentiments; Will the downtrend continue?
-Manhattan Venture Partner's Santosh Rao shares his insight on global cues, markets and more
All this and more on #TradeTalk with Alex Mathew. #BQLive
-Manhattan Venture Partner's Santosh Rao shares his insight on global cues, markets and more
All this and more on #TradeTalk with Alex Mathew. #BQLive
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NewsTranscript
00:00 Good morning and thanks so much for tuning in. You're watching Trade Talk on BQ Prime. My name
00:03 is Alex Mathew. Now, we've seen quite a bit of selling this week. And I think the last couple
00:08 of days, the best way to describe it is in superlative. So the longest streak of losses
00:15 since. And we have lost now for six days in a row. And that's, as I was saying, the longest streak
00:22 of losses since last year, since February of-- or rather, since February of this year. So that's
00:29 about seven months. Now, you also saw quite a bit of foreign institutional selling in yesterday's
00:35 session. And that was, in fact, the most selling in 2023. So all of these kind of lay the foundation
00:42 for what you will see at the end of the week as well. And let me take you through a couple of
00:48 important data points. We had a high of 20,222 on the 15th of September. We're now down about
00:57 1,400 points. The Nifty Bank is, in fact, down as much as 4,000 points from its recent high
01:03 of 46,310 for the week, in fact. The Nifty Bank is down about 3.3%. We've seen a market cap erosion
01:12 in just the last six sessions of as much as 18 lakh crore rupees. To a certain extent, this is
01:19 mirroring what you're seeing across the globe, because risk assets have been on the back foot.
01:23 Part of that has to do with geopolitics, but quite a bit also has to do with the fact that bond yields
01:29 have been very volatile. However, in yesterday's session in the US, you saw the US GDP number that
01:36 came out. That was 4.9%. That was faster than some people had anticipated and still showing quite a
01:42 bit of resilience in the face of higher interest rates. That could lead to a conversation next week
01:49 for the Fed not to raise rates immediately, but indicate that they might raise rates. We'll get
01:55 you a perspective on that in just a bit. For now, though, let's focus on the levels that you need to
02:00 watch out for in trade today based on the F&O data. Yesterday, remember, was also the monthly
02:04 expiry and we're heading into a new series today. Agam is joining in to talk about the key levels at
02:10 the start of this new series. It's changed quite dramatically. It certainly has, Alex. In fact,
02:16 no one was expecting the Nifty to break 19,000. That was a big psychological mark,
02:20 besides the fact that there was a lot of open interest accumulation around there.
02:25 So it certainly was considered a significant support for the markets, but we not only did
02:31 we break below that, we closed well below that mark. And in fact, at the moment, we are looking
02:37 at the Nifty potentially hovering between 18,500 and 19,000. So as I mentioned earlier, well,
02:45 yesterday's support now becomes a resistance in today's day of trade. So based on that, of course,
02:51 Max OI now is in the 19,000 call. And on the lower end, we're watching out for 18,800. That could be
02:58 perhaps an intraday support in today's day of trade, considering the accumulation of open interest
03:03 in those puts going in. As far as the Bank Nifty goes, once again, a lot of activity has now shifted
03:10 substantially below the 43,000 mark. And this is, once again, something that we weren't expecting.
03:17 But at the moment, puts accumulation coming in at around 40,000. So we're looking at about a
03:23 3,000-point-odd range moving into this coming week's expiry. And a lot of activity, as one
03:29 might expect, has also shifted around the 42,500 mark. These are the levels that we're playing with,
03:34 Alex, but I reckon that a lot will depend on the data that will come through over the course of
03:40 the next week. And that will perhaps determine whether or not we are going to see further
03:44 correction or some sort of consolidation. A substantial up move from here, at least for
03:49 the coming week. There's a low probability of something like that happening. Interesting. All
03:53 right. Thanks so much, Agam, for pointing that out. And as Agam said, and for me, the takeaway is that
03:58 the action shifts below 19,000. And that's what you need to bear in mind in trade today as well.
04:03 But let's zoom out, really, and take a more global perspective. We're joined, in fact, by Santosh
04:09 Rao, Head of Research and Partner at Manhattan Venture Partners. Thank you so much, Santosh,
04:16 for taking the time. And good evening to you. It's before the trade starts today for us here in
04:22 India, though. Give us some perspective on how you read the US GDP numbers, because I think that is
04:28 a big talking point overnight. 4.9% and strong consumption growth as well. Does that give more
04:36 fuel to the conversation around another rate hike? And when do you anticipate that?
04:41 Yeah, thank you. I think to some extent, it was expected, to a large extent, actually. We knew it
04:48 was, I think the WISPA number was anywhere from 4.7, 4.5 to 5, actually. So it was, and we had
04:55 even estimates at 3%. So it was like a wide range, but it was generally expected to be good, solid.
05:01 The only issue is, I think we've reached a point now where good news is bad news. We don't want
05:08 such robust numbers. But this was expected. The whole issue now, the focus shifts to the future.
05:13 I don't think we can repeat this. There was a lot of inventory accumulation, the consumer was strong,
05:19 and all that. But going forward, we have the student loan repayments coming up, a lot of
05:24 the credit tightening going on. There's a general sentiment of slowing down as well
05:30 in the consumer sentiment, even though the consumer is still strong. But I think his resiliency, his or
05:35 her resiliency, his staying power, I think is going to wobble a little bit going forward,
05:41 because there is some uncertainty. But as long as we have a good job market, I think we can sustain
05:47 it, and inflation is coming down. So I think that should help overall. But net-net, the sentiment
05:53 is down. And like they say, the path of least resistance is down. The bearish sentiment has set
05:59 in. But definitely, recession clouds hovering down the road. The timeline gets pushed out more and
06:06 more. So now I think it's more like middle of next year. And I'm in the camp, I have been all along,
06:12 that we will have a recession, it will be a mild one, a quick one, and we'll go away, given the
06:17 resiliency of the US market. So that's where we are. That's the backdrop of how I see today's
06:22 numbers. So it's good, but tough to sustain it. It's interesting, because there are corollaries
06:27 that can be drawn, right, where you're talking about an individual that's taken a flu shot,
06:32 they're going to get sick eventually. The question is whether or not it's going to be a bad one. And
06:37 everyone's thinking that maybe they can get away with just a head cold or something like that.
06:42 But having said that, we've seen quite a bit of a correction, if we can call it that, in the equity
06:49 markets in the US, the S&P 500 now, I think, down about 10% from the peak. And a lot of action
06:55 shifting, Santosh, correct me if I'm wrong, to the Treasury, where we've seen quite a bit of action
07:01 and quite a bit of volatility in the yields. What is your opinion about what happens to capital
07:07 flows globally? I'm asking from the perspective of EMs, because you have quite a bit of money
07:12 that flowed out of the Indian market in the cash segment yesterday. Absolutely. I think that's a
07:18 big point right now. You know, the 5%, the 10-year 5% rate, that gets breached. I mean,
07:26 I know we touched on it and came down. Anything above that, it's definitely going to be,
07:32 it's not going to be good for the stock market for sure. Then you can get risk free for 5%
07:38 in the return for a bond. I think, why would you go for the stock market? That's the general
07:43 thinking, very simplistic thinking. But overall, the sentiment does change to the bond market,
07:48 to safety, to safe haven. And that's what you're going to see more and more people pulling out of
07:53 the stock market. And the stock market was rich, remember that. In the US especially,
07:58 majority of the gains were restricted to about seven to eight big tech numbers, the magnificent
08:06 seven, like they said. So those techs really were the ones who drove the indexes up and kept the
08:11 economy up. But overall, the equal weighted index was not that high. So I think that's what you're
08:17 saying. I think that's pulling back, everything's pulling back. You're seeing the latest tech
08:22 earnings, all good numbers, but it's not good enough. You want spectacular numbers because the
08:28 stocks have run up quite a bit. And any sign of slowdown, any whisper of them telling that things
08:35 are going to slow down, they look weak, that's it, people are selling. They're selling first and
08:39 thinking later. That's the general mentality at this point. So you're going to see some pullback.
08:44 It was expected. It's happening right away. There was a Fed put so far, so to speak. The Fed always
08:51 came in and did something and kept the economy, kept the floor on the market. But now they're out
08:56 of the picture. So now I think you're going to see some downturn, some slowdown in the stock market.
09:01 And the bond market is going to really drive the economy, the market sentiment for a while.
09:06 So let's see where that settles. Definitely a safe haven trade. And let's see where-- that's
09:14 the whole thing. If the market is convinced-- I think it's pretty much convinced that, yes,
09:20 the market is strong, but I think the odds of another rate hike are very low. The last time I
09:27 checked, it was like 27%. I think the probability is that they might do one more, which is very low.
09:32 So I think the general consensus is that there won't be any rate hikes this year, probably. And
09:38 they have said it already. They'll probably have two cuts next year instead of four cuts that were
09:45 expected. But there's no hike. So now the question is waiting for the cuts down the road.
09:51 Santosh, a couple of questions here. And I was reading a report that talked about the fact that
09:56 all of this is coming at a time when the US Fed is also trying to curtail its balance sheet and
10:01 shrink it. And therefore, there is no bond buying to support the bond market there. So there is
10:09 quite a bit of chop and churn in the yields as a result. What factor does that play in the rest of
10:17 the year on yields? And the other aspect is, if you're looking out from the US at markets like
10:24 India, markets like China, what, according to you, will look attractive in this scenario? Or do you
10:30 think that it's going to be risk off for a while? Yes, it's going to be risk off. And I did not
10:36 answer your earlier question. I think higher rates will also spike up the dollar. And that's not good
10:42 for the US market, for the Indian markets and the emerging markets, because all the dollar-denominated
10:47 debt and then all the dollar-denominated purchases are going to be expensive. So all commodities
10:53 will be expensive, oil will be expensive. So it has a ripple effect down the road when dollar
10:57 is strong. And that's what's happening. Money is coming out of other countries into US because the
11:01 rates are going up. The dollar is strong. So you don't want too strong a dollar as well. So I think
11:08 let's see where that goes. That definitely has a weakening effect all over. In the US, yes,
11:15 rates are going to be-- it's definitely going to stay up, stay up there. And people want to ride
11:20 out this whole turbulence, like in the air pocket that we've hit. We don't know how long it's going
11:27 to last. But definitely, there is a caution in the air. And that's the operative word. So no one wants
11:33 to buy. There are no buyers in the market. Everyone wants to just get out and stay on the sidelines
11:38 and just wait for the dust to settle. That seems-- appears to be that's the scenario right now.
11:44 And you're going to see a lot of that. I think that's the main thing. Fantastic. All right.
11:49 Santhosh, thanks so much for that perspective. And I look forward to talking to you soon.
11:54 Sure. Thank you. Thanks for having me. All right. Let's shift focus now to individual
11:58 stocks that you need to watch out for in trade. ACC is a stock that will be in focus on the back
12:03 of results. And Rishi is joining in to give you some perspective on how they stacked up
12:07 against the outlook or the expectations. Over to you. So-- Morning. Morning. So the results were
12:13 more or less in line. But in fact, the profits actually beat estimates that was tagged based
12:19 on Bloomberg estimates. So net profits stood at 388 crores compared to a Bloomberg estimate of
12:24 334 crores. Now, revenue grew by over 11%. And this is on account of a volume growth of 17% to
12:32 8.1 million tons. And this was also partially offset by a drop in net realizations. But then
12:40 again, EBITDA was up by almost 34 times. And this was on account of lower power and fuel costs.
12:47 So power and fuel costs fell by about 32% to 886 crores. And also, one other thing to note is that
12:53 the surge in net profits as well as operating profits was also on account of a
12:58 weaker base that the company had in the previous year's second quarter. Apart from that,
13:04 there are a couple of brokerages that came out with notes with regards to its results. There's
13:08 MK, which maintained its buy rating. And it raised the target price by about 3% to 2,365.
13:15 This implies a 23.62% upside with regards to yesterday's closing.
13:20 It attributes the lower EBITDA to lower than expected realizations. And the volume growth was
13:25 driven by higher transactions, master sales agreements with its parent, with its ambuja.
13:31 Then it has also raised the EBITDA estimates by 5% for the current fiscal, which means we may
13:36 possibly see higher EBITDA in the second half of the fiscal. Then there's Motilal Utsal, which has
13:42 maintained a neutral rating on the stock with a target price of 2,150. This implies a 12.4% upside.
13:48 And the pad growth was again driven by a surge in volumes as well as a surge in other income.
13:54 Apart from that, the brokerage is looking for more clarity with regards to future plans of
14:00 the company. But regardless, it is positive with regards to the CapEx plans that it is executing.
14:04 Apart from that, it also has a really strong presence in the central part of India.
14:09 Apart from that, there's Jefferies, which has maintained its buy rating and the target price.
14:13 And there's Citi, which has raised the target price by about Rs. 100. So,
14:16 the stock may continue to see some of the upside that it saw after the results yesterday.
14:21 All right. Thanks so much, Rishi, for bringing us those updates. Let's focus in on the other
14:25 earnings. And we're now winding down on the earnings season, another, what, 20 days or so left
14:32 for the current season to get over. We've got Varsha joining in with her whole list of stocks
14:37 that she's watching for in trade. Morning, Varsha. What are you picking up?
14:40 Good morning. So, whole list of companies that has posted for the FY24 results. So,
14:45 let's see. Starting with AGI Greenpath, revenue was up 20% at Rs. 615 crore, while EBITDA was up
14:51 58%. Now, the performance during the quarter was driven by higher sales volume and improvement in
14:57 realisation. Company is also in process of acquisition of Hindustan National Glass,
15:01 which will increase company's capacity by over 3x. Then we have Railtel Corporation,
15:07 where the revenue was up 28% at Rs. 599 crore, while EBITDA was up 2.08x at Rs. 77 crore versus
15:13 Rs. 37 crore last year. And you can see the part was up 77% at Rs. 68 crore versus Rs. 38 crore
15:20 last year. Then we have Dixon Technologies, where revenue was up almost 28%, EBITDA was up 37%. Now,
15:26 the interesting thing is, company's revenue from consumer electronics fell 4% to Rs. 1,440 crore,
15:34 while its lighting products declined 38%. And the revenue from home appliances was flat. However,
15:41 its revenue from mobile and EMS division jumped 77% to Rs. 2,819 crore. Then we have Venus Pipes
15:49 and Tubes, where revenue was up 51%. Company witnessed highest ever quarterly revenue with
15:56 EBITDA margin surpassing 18% versus 12% last year. This was led by backward integration by the
16:02 company. Also, if you see, part was up 2x at Rs. 20 crore. Now, revenue from stainless steel,
16:07 seamless doubled, while welded pipes witnessed a growth of almost 1%. Now, Venus has experienced
16:13 remarkable export growth, which made up almost 15% of total revenues for the current quarter,
16:19 standing at Rs. 28 crore versus Rs. 1.6 crore last year. Also, company's capacity increased by almost
16:25 3x from 12,000 metric tons per annum to 38,000 metric tons per annum for seamless and welded
16:31 pipes. Now, historically, H2 has always been a stronger half as compared to H1. So, maybe
16:37 the next quarter will also be good for the company. Lastly, we have Sadhana Nitro Chem. Now,
16:42 the revenue was up 15%. But if you see, the part was at Rs. 3 crore versus loss of Rs. 0.37 crore
16:51 last year. The interesting thing about this company is that the company's facility has
16:56 become second in the world to manufacture PAP, which is a raw material for paracetamol. So,
17:02 now the company will be producing this PAP through nitrobenzene process, which leads to a purer
17:09 form of raw material. So, now, the company has received approval from Maharashtra Pollution
17:14 Control Board for consent for the production for this PAP. Now, this is big news for this company
17:18 because it's second in the world to make this PAP through nitrobenzene route. Repeat the name of the
17:24 company again. Sadhana Nitro Chem. Okay. All right. So, clearly, lots of stocks that we have to watch
17:28 out for. Varsha, thank you so much for being here with those updates. And interestingly, a lot of
17:33 these names might see action today. And you saw quite a bit of action at the broader end of the
17:39 spectrum yesterday, where we've come off quite substantially from the low point of the day,
17:44 at least at the benchmark level. Now, let's continue to look at individual stocks that
17:49 are in focus on the back of results. We've got Mihika joining in with her list today. Morning.
17:54 Morning. So, first, we have Vodafone India. Revenue and EBITDA grew marginally at 0.5% and 3%
18:01 year-on-year, while their margins improved by 95 basis points. And the net loss of the company
18:08 widened to Rs 8,737 crores versus the loss of Rs 7,840 crores last year. The average revenue
18:15 percent did rise 2.2% at Rs 142 versus Rs 139. Then we have Colgate Palm Oil India. Revenues
18:24 missed. Revenues were up 6% when missed analyst estimates. And whereas EBITDA margin and profits
18:31 beat the estimates. EBITDA was up 18%, margin improved by 337 basis points, and PAT was up 22%.
18:38 The company also announced its first interim dividend of Rs 22 per equity share for FY24.
18:44 The record date set by the company is November 6, and the payment date is set to be November 21.
18:49 Then we have Aours Financiers. The total income was up 25%, and PAT was up 13%. The NIMS and H1
18:56 contracted by 17 basis points to 8%. And 69.7% of the AUMs were for home loans and the balance for
19:02 mortgage loans. Then we have Uber Capital. Revenue was up 63%, and PAT was up 5.48 times at
19:11 Rs 28 crores. The net loans originated were up 34% year-on-year, and the AUM was also up 74%
19:17 year-on-year to Rs 7,592 crores. Then we have Aditya Birla Sun Life AMC. The profits beat the
19:24 estimates of 119 loss, whereas the total income was up 0.66%, and PAT was, however, down 7%.
19:34 Then we have, lastly, we have NLC India. The revenue was down 15%. EBITDA was also down 29%,
19:40 and EBITDA margins also contracted to 28% versus 33% last year. However, PAT was up 2.60 times
19:50 to Rs 1,085 crores. All right. So, again, a whole host of stocks that you have to watch out for.
19:56 And now let's shift gears and talk about earnings previews. And we've got quite a large number of
20:02 frontline companies to watch out for. Reliance Industries foremost among them. Mihika,
20:08 what are the key numbers to watch? It's going to be a good quarter as far as the O2C segment is
20:15 concerned, right? Yeah. So, Reliance Industries is set to report their earnings today. And
20:20 analysts estimate sequential growth in both revenues and profits, mainly driven by the
20:26 robust refining margins and improved performance across all segments, and mostly oil to chemical
20:32 segments, as Alex pointed out. Consolidated revenue is expected to increase by 6% to Rs 2.23
20:38 lakhs. And EBITDA is projected to grow by 5.85% to Rs 40,322 crores. And the net profit is also
20:45 expected to surge 11.5% to Rs 17,850 crores. Coming to the oil to chemical segment, it's
20:53 expected to rise 3% sequentially to Rs 15,700 crores this quarter, which is mainly driven by
21:00 the improving gross refining margins that improved to $12.5 per barrel versus $11 last year.
21:06 This would mainly be driven by the higher diesel cracks, according to JM Financials.
21:10 However, the growth will also be partly offset by the weakness in the petrochemical segment margins
21:16 this quarter, the maintenance shutdowns, and also the moderation in the Russian crude oil.
21:20 To give you some context, the average crude price per barrel sold to India in July was $68,
21:26 while in August it rose to $86. And according to a report from Nomura Research, the Reliance
21:32 Jio Infocomm segment of the company is expected to also rise 3% sequentially. EBITDA is estimated
21:39 to grow to Rs 13,000 crores. This growth is supported by the addition of 8 million subscribers
21:44 and the modest 0.6% uptick in the average revenue per person. And lastly, with the retail segment,
21:51 Nomura Research anticipates EBITDA to improve 22% year on year and 6% quarter on quarter,
21:57 whereas Nomura estimates a 6% quarter on quarter rise too, and EBITDA to grow to Rs 5,100 crores.
22:03 Both these numbers, the growth is said to be driven by increased footfall and the strong pace
22:08 of store additions that the company has been employing recently. All right, interesting
22:12 perspective. Thanks so much, Meeka, for joining in and talking about Reliance Industries. Let's
22:16 continue to focus on the nifty 50 companies that will be reporting their Q2 earnings today. We've
22:22 got Maruti Suzuki to talk about next, in fact, and we've got Vinay joining in to give us the key
22:28 numbers to watch. Vinay, very critical, of course, to look at the period that we're heading into,
22:34 of course, the festive season, all important, but how is the second quarter for Maruti Suzuki?
22:41 Yeah, Maruti Suzuki is expected to post a profit of higher 47.5% increase in profit.
22:48 This is largely due to higher sales and an increased share of SUVs. So the company's sales
22:54 rose 6.7% year on year to 5.5 lakh units in the September quarter. But if you see that this rise
23:01 in volumes is not that much, but the new launches of SUVs like Jimny and Frongs drove these sales
23:08 higher, but the higher average ticket price due to increased share of SUVs, what it did was good
23:14 for the overall financial in the September quarter. So the revenue is likely to rise 29%
23:20 and the margin may have expanded to 11% compared to 9.7% according to last year. So this is all
23:27 according to Bloomberg estimates, and the investors will be looking up at what the company is saying
23:32 about the festival sales, what are ongoing right now, and how they are planning to increase their
23:38 market share in the SUV segment of the market. All right, Vinay, thanks so much for bringing
23:43 us those updates. Certainly, the volume numbers have been a pretty picture for Maruti Suzuki,
23:47 and particularly in the SUV segment, not traditionally a strong point for this company,
23:52 but recent launches have actually worked in their favor. And of course, tie ups with
23:56 certain other companies, I'm talking about Toyota here, where the cross badging efforts for both of
24:01 the companies have borne fruit. Let's see how that pans out and what commentary comes in for
24:06 the festive season, of course. But we've also got pharma stocks to talk about, and we've got
24:11 two companies specifically that will be reporting their numbers today. One is Cipla, and the other
24:16 is Dr. Reddy's Laboratories. Earlier in the year, we were quite gung-ho about the performance of the
24:21 pharma sector that has wobbled just a little bit. Let's see whether earnings will turn the
24:25 tide for these companies. And we've got Monal joining in to give you some perspective about
24:30 the key numbers to watch. Monal, what are you picking up? Morning. Morning, Harsh.
24:34 Well, yes, the Cipla is expected to be a steady quarter. I mean, with all the talks going around
24:39 the acquisition and the sale, it's going to be an interesting watch. The profit estimate is at
24:47 982 crore rupees as per Bloomberg consensus, while the EBITDA margin at around 23.4%.
24:55 Overall, because of a very acute heavy portfolio, it's expected that the India sales might be a
25:04 little muted, and it might be in the mid to high single digit growth in the India business.
25:08 Overall, in the US, no...
25:11 I think we had just a bit of a technical issue, but we're back, I think, with Monal.
25:22 Monal, you were talking about the Cipla results. What specifically were you referring to? We lost
25:27 the last 10 seconds. Yeah, so the India business is expected to report a slightly muted growth
25:33 because the Indian pharma market in general underperformed in the past quarter. So,
25:38 a mid to high single digit growth. Also, now for the US markets, it's expected that the trailing
25:45 three-month sales, Nomura has reported, saw an increase of $12 million. So, now, this is on
25:53 account of one particular product seeing a higher market share. The Revlimid, which has been the
25:59 star drug for all the pharma companies in the US, is expected to see stable sales as for Nomura,
26:05 and the market share in Albutron, which has been a concern because it came off the peak and then
26:10 the company was losing market share, but that has stabilized now, so that should be okay.
26:15 Overall, gross margins are expected to remain stable because of the benefit of price increase
26:20 and freight cost normalization, and the company has a strong product pipeline in the US. So,
26:26 it's important to watch out for the commentary the company has on the launch dates for these
26:30 new products and the long-term growth outlook to the company. Okay, now we're going to move
26:36 on to Dr. Reddy's, which saw a profit estimate of around Rs. 1,281 crore for the quarter,
26:44 and an EBITDA margin coming in at 28% as per Bloomberg consensus. Now, you could expect a
26:50 slight underperformance in the US markets, and this has been the theme with Dr. Reddy's because
26:55 of the uncertainty around the new launch pipelines and the price erosion that is being witnessed in
27:02 the base business. Overall, the expectation is that you're going to see a lot of competitive
27:08 pressures in certain large products of the company over the next 12 months. However, in the current
27:14 quarter, there has been stable sales in Revlimid, which is again the star drug for the company,
27:20 but overall there has been a marginal decline of $5 million over the last quarter.
27:27 Russia sales are expected to improve, and India performance is expected to be in around high
27:34 single-digit growth. Overall, the announcement of the new product launch pipeline is a key
27:39 monitorable for the company. Thanks so much, Monal, for bringing us those updates. Let's very
27:44 quickly take you through a few more stocks that will be in action because of news updates. Himansh
27:51 is joining in with that list. Morning, Himansh. Morning, Alex. So, a few updates to keep in mind.
27:55 Nothing groundbreaking as such, but these stocks could see some reaction or not. But regardless,
28:01 the key updates are with Pravig. The board has approved the merger between Eulogia and the
28:05 company. Both the companies are in the hospitality sector. And in this merger, there will be 17.3
28:12 lakh new equity shares of Pravig are going to be issued to the shareholders of Eulogia. And the
28:18 share exchange ratio is set at 27 shares of Pravig for every 187 shares of the transferee company.
28:24 Then we have McLeod Russell, where the subsidiary Borrelli Tea Holdings sold 100% stake in Bhupen
28:30 Tea Company, which is based out of Vietnam. It's a step down subsidiary of the company. And
28:35 Bhupen Tea will be sold to TLK Agriculture for a consideration of $2.15 million,
28:42 or about 17 crores. The sale is expected to be complete by December 24. Then we have Leventree
28:50 Holdings, where the company has signed a license agreement for a 50-room property in Vishakhapatnam.
28:55 And the hotel is to be under the brand of Red Fox Hotels. And it's expected to be operational
29:00 by FY26. Lastly, we have Bajaj Finance, where the company is to consider a price issue on November
29:08 1. And this is after the company recently announced a 10,000 crore fund raise, both with warrants and
29:14 QIP. And before I forget, Paesalo Digital as well, the board is set to meet on October 31
29:20 to consider raising funds via debt. So these are the stocks to keep an eye on and keep a track of
29:25 their updates as well. All right. Thanks so much, Himansh. And that brings us to the end of this
29:28 edition of Trade Talk. Hopefully, you've gained some perspective. Do stay tuned, lots of coverage
29:33 of the market lined up over the course of the day. This is BQ Prime.
29:44 Thanks.
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