Goldman Sachs | Business Upturn

Samvardhana Motherson schedules analyst meetings with Goldman Sachs and Kotak Securities

Business Desk — Mon, 23 Mar 2026 16:20:12 +0000

Samvardhana Motherson International has announced its upcoming schedule for meetings with analysts and institutional investors. The company is set to engage in a virtual one-on-one meeting with Goldman Sachs India Securities Pvt. Ltd. on Friday, 27 March 2026, from 11:00 to 12:30 IST. Following this, a physical meeting is scheduled with Kotak Securities Ltd. on Tuesday, 31 March 2026, from 16:00 to 17:00 IST.

These meetings are part of the company’s ongoing efforts to maintain transparency and communication with its investors and analysts. The schedule is subject to change depending on any exigencies faced by the investors or the company itself.

Importantly, Samvardhana Motherson has clarified that no unpublished price-sensitive information will be shared during these meetings. This adherence to regulatory norms ensures that all stakeholders are on an equal footing regarding the company’s financial and operational insights.

These meetings are disclosed in compliance with Regulation 30(6) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, read with Part A of Schedule III to the Regulations.

Disclaimer: This article is based on a regulatory filing submitted to the National Stock Exchange of India (NSE).

L&T share: Goldman Sachs upgrades to buy, raises target to Rs 5,000, sees ~25% upside on defence, green hydrogen and nuclear growth

News Desk — Fri, 12 Dec 2025 03:17:09 +0000

Goldman Sachs has upgraded Larsen & Toubro (L&T) to a ‘Buy’ rating and raised its target price to ₹5,000 from earlier levels, implying an upside of nearly 25% from the current market price of ₹4,003. The brokerage said the upgrade is driven by improving long-term growth visibility, supported by L&T’s expanding opportunities in defence, green hydrogen and nuclear power.

In its note, Goldman Sachs highlighted that L&T is well positioned to capitalise on emerging structural themes, with these three segments alone offering a combined total addressable market (TAM) of around ₹1.4 trillion (US$16 billion) in FY26E. The brokerage expects this opportunity set to expand sharply to nearly ₹3.4 trillion (US$38 billion) by FY35E, providing a strong multi-year growth runway.

Goldman Sachs also pointed to L&T’s healthy order backlog and improving confidence in a domestic capital expenditure recovery across select sectors. The brokerage believes that the company’s diversified project portfolio, strong execution capabilities and exposure to high-growth segments place it in a favourable position as private and public sector investments pick up.

On the financial front, the brokerage expects L&T to deliver low double-digit revenue compounding and mid-teens growth in profit after tax over the next five years, supported by margin stability, operating leverage and a better mix of high-value projects.

According to Goldman Sachs, the improved visibility on long-term earnings growth and the expanding opportunity landscape in strategic sectors underpin its decision to upgrade the stock and raise the target price.

Disclaimer: This article is based on a brokerage report by Goldman Sachs. The views expressed are those of the brokerage and are for informational purposes only. This is not investment advice or a recommendation to buy or sell any stock.

Goldman Sachs downgrades Gland Pharma to ‘Sell’, expects 19% downside

News Desk — Fri, 27 Sep 2024 03:12:42 +0000

Goldman Sachs has downgraded Gland Pharma to a ‘Sell’ rating and slashed its target price to ₹1,500 from ₹1,849, citing multiple headwinds affecting the company’s profitability. The investment bank foresees challenges due to an increasing reliance on lower-margin legacy products for growth, rising pricing pressures and competition in key US markets, and potential delays in launching higher-margin products.

Additionally, Gland Pharma’s slower-than-expected turnaround at its Cenexi acquisition and higher investments for new ventures are expected to weigh on its performance. As a result, Goldman Sachs has cut its earnings per share (EPS) estimates by 17-20% for FY25-27, along with a 300 basis points reduction in core business margins.

Goldman also highlighted the company’s relatively expensive valuation, trading at 28x 12-month forward P/E compared to approximately 20x for its key injectable peers, further supporting the downgrade.

Goldman Sachs downgrades Vodafone Idea to Sell, cuts target to Rs 2.5

News Desk — Fri, 06 Sep 2024 02:52:06 +0000

Goldman Sachs (GS) has reiterated its “Sell” rating on Vodafone Idea (VI), India’s third-largest telecom operator. The investment bank has set a target price of Rs 2.5 for the stock, reflecting a pessimistic outlook on the company’s future prospects.

Key Points:

Capital Raise Inadequacy: While acknowledging that VI’s recent capital raise is incrementally positive, GS believes it is insufficient to halt the company’s ongoing market share erosion.
Market Share Forecast: Goldman Sachs projects a further 300 basis points (bps) loss in market share for Vodafone Idea over the next 3-4 years.
ARPU Requirements: For VI to achieve sustainable free cash flow neutrality, GS estimates that Average Revenue Per User (ARPU) would need to increase by Rs 200-270.
Government Intervention: The analysis suggests that the probability of reaching the required ARPU levels in the medium term is low, unless the government converts its dues into equity.

Investors should carefully consider these factors and the company’s ability to overcome these challenges before making investment decisions regarding Vodafone Idea.

Goldman Sachs downgrades Indus Towers to ‘Sell’

News Desk — Fri, 06 Sep 2024 02:51:37 +0000

Goldman Sachs (GS) has issued a downgrade on Indus Towers, moving the stock from its previous rating to a “Sell” recommendation. Despite the downgrade, the investment bank has significantly increased its target price for the company from Rs 220 to Rs 350.

Key Points:

Fundamentals Improvement: GS acknowledges a substantial enhancement in Indus Towers’ fundamentals, leading to an upward revision of their EBITDA estimates by up to 17%.
Overvaluation Concerns: While the analysts see justification for a higher multiple compared to recent history, they believe the stock’s re-rating has been excessive.
Growth Outlook Uncertainty: GS expresses limited visibility on Indus Towers’ medium to long-term growth prospects. This uncertainty is attributed to two main factors:
- Vodafone Idea’s (VIL) ongoing market share erosion
- Continued pressure on free cash flow (FCF)

Disclaimer: The information provided is for informational purposes only and should not be considered financial or investment advice. Stock market investments are subject to market risks. Always conduct your own research or consult a financial advisor before making investment decisions. Author or Business Upturn is not liable for any losses arising from the use of this information.

Goldman Sachs DOWNGRADES SBI to Sell, cuts target price to Rs 742

Aditya Bhagchandani — Thu, 05 Sep 2024 16:27:41 +0000

Goldman Sachs has downgraded State Bank of India (SBI) from a “Neutral” rating to “Sell,” citing multiple challenges ahead for the bank. The firm has also cut SBI’s target price to ₹742 from ₹841, reflecting a cautious outlook on the bank’s performance.

According to Goldman Sachs, SBI’s return on assets (ROA) is expected to peak at 1% in FY24 but will likely fall below this level by FY26. The bank is facing a potential de-rating in its valuation due to lower loan growth and widening gaps between deposit and loan growth.

Over the last four quarters, SBI has been losing market share in deposits, a trend that could continue. As a result, Goldman expects lending growth to slow down and has lowered its growth estimates by 100-400 basis points for FY25-FY27. Additionally, rising slippages in the MSME, agriculture, and unsecured loan portfolios are expected to push up credit costs.

The bank’s earnings per share (EPS) for FY25-FY27 have also been revised down by 3%-9%. With these factors in mind, Goldman has reduced SBI’s target multiple from 1.2x to 1x, signaling a more conservative outlook for the bank’s future performance.

Shares of SBI closed 0.18% higher on NSE at Rs 818.00 (Thursday 3:30 PM).

NTPC shares surge 3% on bullish rating of Goldman Sachs: Details

Dixita Hazarika — Wed, 19 Jul 2023 11:10:41 +0000

On July 19th, NTPC shares gained over 3 percent, reaching Rs 193.60 around 1:34 pm today, after Goldman Sachs, a foreign brokerage firm bestowed a favourable buy rating on the power sector giant, considering it as a top pick.

Goldman Sachs initiated the buy rating on NTPC with a target price of Rs 265, indicating a potential upside of 42 percent.

The brokerage firm outlined two pivotal themes that have been shaping India’s power sector and influencing NTPC’s growth prospects. Firstly, the economics-led renewable transition is gaining momentum, driven by the viability of round-the-clock renewables. This transformative approach offers traditional utilities like NTPC the opportunity to unlock a superior business model, leading to higher returns and access to a broader customer base. Secondly, there is a concurrent onset of a peak power deficit cycle, attributed to a consistent rise in peak demand, which is met with insufficient ‘firm’ capacity addition. In this context, NTPC’s strategic advantage of low-cost debt serves as a robust moat, positioning the company as a frontrunner in this transition.

As per Goldman Sachs’ views, NTPC will emerge as a winner in this transition, as its ‘structural advantage’ of low-cost debt will provide a strong moat. Additionally, the rising peak shortages are expected to enhance the valuation of NTPC’s legacy thermal business, similar to what was observed in the previous cycle.

In comparison, Goldman Sachs also gave a buy rating on SVJN at a target price of Rs 55. The brokerage firm downgraded Tata Power to a sell rating at a target price of Rs 190, given the medium-term earnings headwind from global coal cost decline and limited growth catalysts in the renewables business since its partial monetisation in FY23.

Goldman Sachs to layoff Managing Directors including other employees; Here’s what we know

Dixita Hazarika — Mon, 26 Jun 2023 13:08:43 +0000

Goldman Sachs Group has started to cut down jobs as it is looking to let go of managing directors across the globe as the firm reduces its headcount amid deal slumps.

The Goldman Sachs Group, Inc. is a leading global financial institution that delivers a broad range of financial services to a large and diversified client base that includes corporations, financial institutions, governments and individuals. Founded in 1869, the firm is headquartered in New York and maintains offices in all major financial centers around the world.

According to a source, the group is looking to let go of about 125 Managing Directors, including some in investment banking. Not all of the layoffs have happened yet.

This move by Goldman Sachs is a part of a deep cost-savings drive at the bank, which has seen at least three rounds of job cuts in less than a year. Goldman Sachs and other banks increased hiring in 2020 and 2021 amid a surge in M&A and initial public offerings are now grappling with falling fees as dealmaking sputters.

According to data, deal values have fallen more than 40 per cent this year to $1.2 trillion, with Goldman Sachs the number two adviser globally. The last time the bank didn’t top the rankings at the halfway point of a year was in 2018.

JPMorgan Chase & Co. is terminating about 40 investment bankers as part of its effort to cope with the global slowdown. Citigroup Inc. also started cutting hundreds of jobs across the company this year, and plans to shed 30 investment-banking jobs and 20 more at its corporate bank in London.

In the past month, several Goldman Sachs veterans joined the competitors, including Wells Fargo & Co. and Banco Santander SA. Tech banking co-head and global head of semiconductors, Tammy Kiely, jumped to Evercore Inc.

Ola Electric plans IPO by end of 2023, engages Goldman Sachs & Kotak for share sale

Viditha Ganji — Fri, 26 May 2023 04:25:53 +0000

Ola Electric, an Indian electric scooter manufacturer, is preparing for its much-anticipated stock market debut by the end of 2023. The company has enlisted the services of investment bank Goldman Sachs and domestic bank Kotak Mahindra Bank to manage the share sale, according to a source familiar with the matter.

With notable backers such as SoftBank Group and Tiger Global Management, Ola Electric achieved a valuation of $5 billion (approximately Rs. 41,375 crore) during its previous funding round in 2022. As the company seeks to tap into India’s burgeoning electric vehicle market, it aims to surpass this valuation in its IPO, although the exact fundraising target has not been finalized.

While additional investment banks are expected to join the deal closer to the IPO, the involvement of Goldman Sachs and Kotak represents a significant step towards a successful listing.

Ola Electric was founded by Bhavish Aggarwal, who is also the brain behind the ride-hailing giant Ola, a competitor to Uber. Aggarwal envisions capturing India’s nascent yet promising electric vehicle market with the company’s range of electric scooters.

Given the current market conditions, launching the IPO and completing the necessary procedures, including filing draft documents and marketing to investors, by the end of the year may prove challenging. However, Chief Executive Bhavish Aggarwal remains steadfast in his commitment to meet the proposed timeline, according to the source.

If Ola Electric manages to sell the minimum required 10 percent stake in the IPO at a valuation exceeding $5 billion, it could potentially become India’s largest IPO of the year. This achievement would come amidst relatively tepid market conditions.

When approached for comments, an Ola spokesperson declined to provide additional details, while Goldman Sachs and Kotak were yet to respond to Reuters’ requests for comment.

As the demand for sustainable transportation continues to grow, Ola Electric’s IPO holds significant promise for investors looking to capitalize on India’s shifting automotive landscape. With its solid backing from prominent investors and Bhavish Aggarwal’s track record of success, Ola Electric is poised to make a considerable impact in the electric vehicle sector, further accelerating the country’s transition to cleaner and greener mobility solutions.

Goldman Sachs forecasts three additional US Fed rate hikes but no reductions in 2023

Sakshi Vats — Fri, 17 Feb 2023 13:01:33 +0000

Recent US data have shown sticky inflation and a resilient labour market, and Goldman Sachs anticipates the US Federal Reserve to maintain its hawkish stance in 2023. According to Goldman Sachs, the US Federal Reserve can increase interest rates three more times this year. According to a survey released on Thursday, producer prices increased in January by the most amount in seven months. According to another data, the number of Americans who applied for unemployment benefits dropped last week, indicating that employment in the US is increasing. In a note dated Thursday, analysts led by Jan Hatzius stated, “In light of the higher GDP and firmer inflation news, we are adding a 25bp (basis points) rate hike in June, for a peak funds rate of 5.25-5.5%.”

Additionally, a terminal rate of 5.3% by July is now factored into the money markets.

According to Reuters’ poll of economists, a number of other economists, besides Goldman Sachs, think that the US Fed will increase interest rates at least twice more in the near future. Furthermore, none of the analysts anticipated a rate reduction in 2023. J.P. Morgan had predicted a funds rate of 5.1% by the end of June before the release of recent US data. Furthermore, Bofa Global Research predicted that at the end of 2023, the terminal rate would be between 5.0% and 5.25%. It had previously earlier forecast two rate increases of 25 basis points apiece, which was greater than UBS’s projections. European Investment Bank has operations iIn March, there may be a rate increase in Europe, according to them. The present cycle of hiking will come to an end then. By the end of 2023, the policy aim would remain 4.75-5%.

Goldman Sachs leads India fintech funding while deals dry up

News Desk — Tue, 14 Feb 2023 06:25:51 +0000

Indian fintech startup InsuranceDekho raised $150 million from a clutch of investors led by Goldman Sachs Asset Management, an unusually large investment round that will help it target an under-served domestic market. TVS Capital Funds co-led the equity and debt financing, the largest-ever Series A round for an Indian insurance technology company, the startup said in a statement. Investcorp, Avataar Ventures and LeapFrog Investments participated.

InsuranceDekho — Hindi for “Check Out” Insurance — was founded by Ankit Agrawal and Ish Babbar in 2016. It will use the new capital scale up technology and product, expand into new markets and grow the company’s business with small and medium enterprises. It could also bankroll acquisitions. The business, which has its headquarters in the Delhi suburb of Gurgaon, aims to reach an annually premium run rate of 35 billion rupees ($423 million) by March. It faces competition from companies like Amazon.com Inc.-supported Acko General Insurance Ltd. and PolicyBazaar from PB Fintech Ltd., which is funded by SoftBank Group Corp. About three-quarters of insurance plans offered in India are still acquired by the country’s urban population. But by utilising technology for wider distribution, digital businesses like InsuranceDekho want to reach consumers in smaller cities and rural areas.

CEO Agrawal stated in an interview that “there are two Indias within India.” “The real India lies in the small towns and villages, where the keys to buying insurance are affordability and trust.”

The investment round took place when the global venture capital market was struggling. According to CB Insights, funding in India fell to $2.7 billion in the most recent quarter, the lowest level in more than two years. More than 80% of the insurance products sold by InsuranceDekho, a division of used car marketplace CarDekho, are sold outside of the major cities. By the end of the year, the business, which already serves 1,300 municipalities, hopes to have over 200,000 advisers using its platform.

According to the company, which cited the India Brand Equity Foundation and Statista, insurance penetration in India is roughly 4.2% of gross domestic product, compared to 12% in the US and below the global average of 7%

Goldman Sachs lifts its oil estimate to $115 per barrel amid Russia & Ukraine conflict

Vineet Jain — Mon, 28 Feb 2022 12:48:32 +0000

Goldman Sachs boosted its one-month projection for Brent crude oil prices to $115 per barrel, up from $95, on February 28. The upward revision comes as tensions between Ukraine and Russia rise, with the latter facing severe Western sanctions.

As a result of the sanctions, several of Russia’s largest banks have been shut off from the SWIFT international payment system, causing serious disruptions to its shipments of all goods, from oil to grains.

Russian crude oil grades, which account for around 10% of the global oil supply, have taken a beating in physical markets. Because the sanctions are aimed at Russia’s banking institutions, Goldman Sachs analysts believe they will “exacerbate” the commodities supply shock.

“While details on the implementation of these additional sanctions have not been released, with carve-outs likely still allowing for energy and food trades, the hurdles that these sanctions will create for financial payments are likely to exacerbate the recent Russian commodity supply shock, already visible as Western and Chinese traders halting shipments,” added the analysts at the investment bank.

They also suggested that up to 4 million barrels of demand destruction were required to compensate for the loss of Russian supply on the global market.

According to analysts, the Organization of Petroleum Exporting Countries (OPEC) can react to the issue, but any action done by them is likely to come at the price of the global oil market’s spare capacity.

“While such an outcome becomes increasingly likely the more Russia is ostracized from the global economy, driving core-OPEC, Iran and the West closer together, it would nonetheless come at the expense of a complete depletion of the global oil market’s spare capacity, still warranting much higher oil prices,” they noted.

Significantly, oil prices rose again earlier today, with Brent crude jumping by $4.82, or 4.9%, to $102.75 per barrel at 10:28 GMT, after reaching a high of $105.07 in early trade.

West Texas Intermediate (WTI) oil in the United States was up $4.62, or 5%, to $96.21 a barrel after reaching $99.10 in early trade. “Growing concerns about disruptions to Russian energy supplies are pushing oil and gas prices up sharply,” said Commerzbank analyst Carsten Fritsch.

US Fed to hike rates 7 times amid inflation at 40-year high: Goldman Sachs

Mymun Malik — Fri, 11 Feb 2022 07:24:21 +0000

Jan Hatzius the chief economist and the Head of the Global Investment Research Division at Goldman Sachs expects the Federal Reserve to increase the repo rates to 7 times in 2022 to manage the flaring U.S. inflation, a switch from the previous 5 hikes they had experienced.

The switch comes after the U.S. consumer price index report for January showed a 7.5% annual profit, a massive gain since 1982. These gains were from different sectors going beyond food and energy to health insurance and household furnishings.

Hatzius and his team of economists were indicating that the Fed will go by 25 basis points at the Federal Open Market Committee’s 7 back-to-back meetings.

Given the scenarios of a mixture of sky-high inflation, hot wage growth and high short-term inflation expectation, there is a possibility for a 50 basis points hike in March. Policymakers are indicating a more incremental move, as per Goldman Sachs analysts.

In a detailed report the Goldman analysts wrote, ” Most Fed officials who have commented have opposed a 50 basis points hike in March. We, therefore, think that the more likely path is a long series of 25 basis points hike instead.”

James Bullard is the President of the Federal Reserve Bank of St. Louis and he responded that he supports the increasing repo rates by 100% point at the beginning of July 2022; this came in as a response to the highest inflation in 40 years.

Soon after James Bullard’s response, the Goldman Sachs analysts said, ” We would consider changing our forecast if other participants join him, especially if the market continues to price high odds of a 50 basis points move in March.”

Goldman Sachs reports 45% rise in revenue to $3.80 billion in Q4

Malvika Choudhary — Tue, 18 Jan 2022 16:22:45 +0000

American multinational investment bank and financial services company Goldman Sachs registered a 45% increase in investment banking revenue to $3.80 billion as its chief investors indexed in record fees from advisory on some of the largest mergers, initial public offerings and sales implicating special purpose acquisition companies.

Goldman Sachs reports 2021 earnings per common share of $59.45 and fourth-quarter earnings per common share of $10.81. The company’s shares were down by 8.05 per cent at 350.32 USD today.

The global markets business, which now houses the trading business and accounts for roughly a third of overall revenue, reported a revenue of nearly $4 billion, down 7%. Net earnings suitable to common shareholders fell to $3.81 billion in the quarter ended Dec. 31, from $4.36 billion the same period a year earlier. Earnings per share fell to $10.81 from $12.08 a year earlier.

Corresponded to a strong year-ago quarter when trading volumes zoomed, the bank conveyed equity underwriting revenue fell 8% in the quarter due to lower income from secondary stock offerings.

$GS announces full year and 4Q 2021 net revenues and earnings per share. View the full results, accompanying presentation and learn more on our 9:30AM ET conference call: https://t.co/l55jKNbMAa pic.twitter.com/sZyeKxoWJp

— Goldman Sachs (@GoldmanSachs) January 18, 2022

Analysts on average had expected a profit of $11.76 per share. While profits of JPMorgan, the country’s largest lender, were hurt by a slowdown in its trading arm, a stellar performance at its investment banking softened the impact. Meanwhile on Friday, JPMorgan Chase & Co JPM.N and Citigroup Inc C.N both beat analyst profit estimates.

Goldman’s IBD is unique in that it not only provides these conventional investment banking services but also makes selective principal investments in companies. Goldman’s IBD has its investment funds, which are separate from GS Capital Partners / PIA (Goldman’s internal corporate private equity group).

Goldman Sachs to recruit nearly 2000 employees by 2023

Bhaswati Sengupta — Mon, 19 Jul 2021 13:16:50 +0000

Goldman Sachs, in press release, stated that it will hire over 2000 employees by 2023 for its new office in India.

On Monday, the company disclosed the opening of its new office. The new office is a part of the commitment to expand its global Centre for engineering and business innovation in India, as cited in the press release from the company.

The press release further noted, “In adherence to local government guidelines, Hyderabad operations commenced remotely in March 2021 and currently have about 250 employees.”

The company looks forward to strengthen the Hyderabad office with almost 800 employees by the end of 2021. Among these 800 employees, 70 per cent are expected to be new hires.

“By 2023 the size of Hyderabad office could reach as many as 2,500 employees”, the press release added.

As per reports, the new facility was inaugurated by Telangana IT and Industries Minister KT Rama Rao.

David M Solomon, chairman and chief executive officer voiced that the new office will serve as a crucial innovation hub for a wide range of Goldman Sachs business and enhance its reputation as a global firm.

According to Mint, in 2004, the company initiated its first office in Bengaluru, which developed as the second largest technology hub in the world comprising nearly 7,000 professional.

The new Hyderabad office and Bengaluru office is likely to complement each other in execution and support offered to global business. Both the offices, will collectively establish the Goldman Sachs Services Pvt. Ltd entity in India.

Senior Paytm executives including Amit Nayyar resign before its $2.3 billion IPO

Diya S. — Fri, 09 Jul 2021 15:37:12 +0000

As per the Economic Times (ET), top executives of Paytm have resigned before its Initial Public Offering (IPO) of $2.3 billion.

According to two sources familiar with the matter, Noida-based Paytm’s president Amit Nayyar had tendered resignation. In addition, the chief human resources (HR) officer Rohit Thakur along with three vice presidents has quit the digital payments firm as well.

A former executive of Goldman Sachs, Amit Nayyar was hired in the year 2019 with an aim of building up the company’s financial services arm. He was proved to be significant in propelling its insurance and lending verticals.

Regarding Nayyar leaving the firm, a source directly familiar with the matter said that the timing of his exit was “intriguing” considering his position of President. “Only Madhur Deora now has the President tag in the company”, the source continued, as reported by ET.

Meanwhile, Rohit Thakur, who joined the firm in 2019 resigned in the first week of June after serving his notice period. Earlier, Thakur had worked as Accenture’s HR Head.

About Rohit Thakur’s resignation, the source said he was “relatively new” in the company and that managing HR in a large organization like Paytm, especially in the run-up to IPO could be “challenging.”

The firm responded to ET’s e-mail saying that, “As a company, we do not comment on personnel changes. We have built an incredible management team with some of the reputed names in the industry, who are focused on driving growth at Paytm.”

The retail unit of RIL could be the next engine of growth: Goldman Sachs

Diya S. — Tue, 22 Jun 2021 12:15:54 +0000

According to a leading global financial institution Goldman Sachs, Reliance Industries Limited’s (RIL) retail unit could be the next growth driver for the Indian multinational conglomerate. The retail business has grown 5x over FY16-20.

Due to the COVID-19 pandemic, the retail business took a hit but RIL continued to focus on building strong digital capability.

In a report this week, brokerage and research firm’s analysts have said that retail earnings before interest, taxes, depreciation and amortization (EBITDA) could grow 10x in the next ten years.

The report stated, “During the macro downturn , RIL has focused on building strong digital capabilities and we believe the scale-up in omnichannel offering is driving sizeable market share wins. We see a six-fold increase in grocery organized retail penetration in India by FY30, coupled with 15% market share gain of RIL.” Presently, RIL holds a market share of 41.5 per cent in organized retail space.

Goldman Sachs’s note also highlighted that it expects the core retail of RIL is to increase at a 36 per cent compound annual growth rate (CAGR) over the next four years to $44 billion while expecting e-commerce revenues to occupy 35 per cent of total revenues in FY25 at $15 billion.

Since the month of September, 2020, RIL’s share price has underperformed the Nifty50 Index by 39 per cent. The brokerage firm added, “Risk reward looks favourable, with 40% upside in our bull case and 14% downside in bear case.” It has a ‘buy’ rating on the stock with a ₹2,425 target price translating to 7.7 percent upside from current levels in the next one year.

ReNew Power enters agreement with RMG II; soon to list on NASDAQ

Arnav Dogra — Thu, 25 Feb 2021 06:27:23 +0000

ReNew Power, a company backed by Goldman Sachs, a New York-based American multinational investment bank and financial services company, in a public release declared the enforcement of a definitive partnership with RMG II Acquisition Corporation for a project by which ReNew will be publicly listed on the NASDAQ.

Among one of the players who recently participated in a tender for privatization of power distribution in Dadar & Nager Haveli, Daman & Diu, ReNew has been planning to expand into fresher segments such as solar manufacturing, power transmission, and power distribution.

Commenting on the same, Sumant Sinha, Founder-Chairman and CEO of ReNew Power spoke, “Over the next decade, ReNew plans to maintain its track record of market share growth, and contribution to the greening of the Indian power sector. Over time, we will expand our capabilities even further, with utility-scale battery storage, and customer focused intelligent energy solutions.”

In the public release, the company had stated that, “total anticipated proceeds of $1.2 billion, comprised of $855 million, upsized, fully-committed private placement of common stock in ReNew Power (the “PIPE”) and $345 million of gross cash held in trust by RMG II, subject to redemptions; anticipated net primary proceeds of approximately $610 million to fund the company’s accelerated growth strategy and pay down debt.”

This deal would result in the formation of a merged company with the name – ‘ReNew Energy Global PLC’ and its listing will be done under the code – ‘RNW’. ReNew said this deal is going to help the company by funding medium-term growth opportunities, as well getting rid of excessive debt.

RailTel Corporation IPO subscribed 6.55 times as the grey market dives

Sanah Shah — Thu, 18 Feb 2021 05:43:53 +0000

RailTel Corporation of India’s IPO of Rs 820 crore has observed robust retail participation at bids summing up to 11 times the issue size until now. The subscription will close on Thursday, 18th February.

The premium that the unlisted shares of the company were profiting from in the grey market has slipped in the past few days. Analysts have largely been positive on the issue, as the Mini Ratna firm is debt-free and has been a consistent dividend payer. The IPO is seeking a just valuation of 21.4 times PE on an FY20 trailing basis at the upper limit of Rs 93-94 price band, they said.

Abhay Doshi, a Gujarat-based dealer of unlisted shares who also follows the grey market, said the stock was dominating a premium of Rs 12-14 on Thursday 18th February, which was way lesser than the Rs 47 premium it was benefitting a few days ago.

“The prospects of the company are very good, but it looks like sentiment has changed due to dull participation of QIB and HNI categories till now,” the founder at UnlistedArena.com said.

Till the end of 2nd Day of the IPO, the issue was subscribed 6.55 times with the retail quota getting bids going up to 10.55 times the limit. The qualified institutional buyers’ quota was subscribed 2.97 times and the non-institutional investor category 2.63 times the limit. The portion reserved for employees was subscribed 1.85 times.

The grey market premium still suggests 13-15% rise over the upper limit of the IPO price band.

Fundamental analysts are positive about the company’s growth prospects, though reported sales and profit growth over the recent years have been in single digits. Geojit has a ‘subscribe’ rating on the issue and cites increasing data usage, the government’s digital India initiatives and further diversification plans.

RailTel is one of the mega neutral telecom infrastructure providers in India. Last reported on 31st January, the company had the exclusive right of way along 67,415 route km connecting 7,321 railway stations for laying optical fibre cable. RailTel offers leased line and VPN facilities and also provides IP-1 services.

The state-run company ensures strategic and important network infrastructure is given to the government and some states. The company is also an applying partner for the Bharat Net project to produce an optical fibre cable-based broadband infrastructure.

During FY18-20, RailTel’s revenues grew at a compounded annual growth rate of 7.5% at Rs 1,128 crore in FY20. Over the same period, EBIDTA grew at a CAGR of 12.4% to Rs 334 crore in FY20. Net profit increased by 2.6% CAGR during the period to Rs 141 crore in FY20. Operating margin was more than 28% while the dividend payout ratio was 46-49% for the same period.

One of the main negatives includes the company’s heavy reliance on government entities and, thus, a concentration risk provided that 23.8% of its revenues come from only three high profile customers. It is present in a highly regulated industry, which is a cause of worry.

Choice Broking said, “Considering the futuristic service & growth plans of the Indian Railways and RailTel’s ability to monetise its existing assets through subscription plans and co-sharing with private operators, we feel that fundamentals are positive for the company. Thus, we assign a ‘subscribe’ rating for the issue,.”

Niral Shah of Samco Securities stated that the issue is fairly priced. “It has been commanding a good grey market premium indicating the offer will sail through but keeping the risks in mind, we recommend investors to subscribe for listing gains only,” he said.

Indus Towers (formerly Bharti Infratel), a listed company in the mobile communications infrastructure sector, has a P/E multiple of around 15 and an EV/EBITDA of 3. Other railway infrastructure stocks such as Ircon International, RITES and RVNL are trading at an average P/E of 9.5 times and the fresh The railway IPO, IRFC, had a poor market launch.

Astha Jain of Hem Securities termed the demanding valuations as ‘fully priced,’ but said that the industry dynamics of telecom and telecom data services — where the broadband market is advancing pace with enterprise data services presents huge potential.

“The edge which company holds over its peers in terms of financial performance makes this issue attractive to deploy funds in. Hence we recommend investors to subscribe to the issue for the short & long term,” she said.

Prospective Investors can subscribe to the IPO by purchasing a minimum of one batch of 155 shares or in multiples. Retail investors can bid for a maximum of 13 lots at the lower band limit.RailTel had on Monday 15th February raised funds worth Rs 243.99 crore from 14 secured investors. Foreign portfolio investors who participated were UK based Aurigin Capital through its Aurigin Master Fund and Utilico Emerging Markets Trust, Reliance Capital managed Cohesion MK Best Ideas Sub-Trust, Singapore based, Integrated Core Strategies Asia and Goldman Sachs India.

Piramal Group to take charge of DHFL

Ruchira Sonawat — Mon, 18 Jan 2021 06:46:55 +0000

Billionaire Ajay Piramal’s Piramal Capital & Housing Finance Limited emerged as the winning bidder for Dewan Housing Finance Limited (DHFL), with almost 94% creditors voting in its favour on Friday. While the rival Oaktree Capital did not even manage to secure half of the creditor’s votes.

The development also brings some resolution to a key case in India’s insolvency system, where high profile cases have at times lingered on for years. Dewan was put into an insolvency process after it was seized by the central bank in a shock move in late 2019.

The bankruptcy of India’s biggest shadow lenders had also captivated global money managers. More than two dozen firms including Goldman Sachs and Morgan Stanley showed initial bidding interest before the list of potential suitors narrowed.

That bidding contest showed interest in the nation’s soured bank loans, which stood at about 7.7 trillion rupees in the latest data at the end of September. A new wave of investors has bet they can eke out profits from India’s rising number of capital-starved businesses struggling to stay afloat amid the pandemic.

Shadow lenders like Dewan are crucial to India’s economy, lending to small merchants and tycoons alike. The non-bank financing industry fell into crisis in 2018 when financier IL&FS Group suddenly stumbled, and the pandemic has added to strains. Policymakers have stepped in with support, channelling liquidity to the sector last year.

Asian equities witness largest foreign investments in over a decade

Sarthak Yadav — Mon, 07 Dec 2020 10:12:10 +0000

Data revealed that Asian equities recorded their biggest foreign inflow in at least 12 years in November. Promising developments related to COVID-19 vaccines have raised expectations of a faster regional recovery from the pandemic.

According to stock exchange data, foreign investors purchased a combined total of $17.5 billion in Indian, Indonesian, Philippine, South Korean, Taiwanese, Thai and Vietnamese stocks in November, the biggest since at least 2008.

The MSCI Asia Pacific ex-Japan index gained 9% last month, the biggest in seven months, all because of positive breakthroughs in vaccine developments from top drugmakers Pfizer, Moderna and AstraZeneca along with a market-friendly outcome of the U.S. presidential election.

Dan Fineman, co-head of Asia Pacific Equity Strategy at Credit Suisse said, “Foreigners have been very underweight in Asia although we have seen quite a bit of buying off late. Starting from a shallow base, foreign investors still have plenty of room to increase their Asian weightings.”

“Our favourite market is Korea, we also like Hong Kong, Singapore and we have overweight in Thailand and China,” he added.

Indian equities lured an inflow of $8.13 billion last month, the highest in the region. South Korea and Taiwan saw foreign buying of $5.2 billion and $3.1 billion respectively.

Foreigners sold Philippine equities for a 13th successive month on worries over its economic growth. Though the region had heavy foreign purchases last month, the inflows were much smaller compared with the outflows faced in March. Asian equities’ total foreign outflows were $34.1 billion in the first 11 months of this year, the data showed.

Goldman Sachs expects Asia’s value stocks to outperform growth stocks as the foreigners return to the regional equities after heavily dumping them earlier this year. “Historically, value outperformed growth 3 out of 4 times when FIIs rebought Asian equities right after major sell-offs, which suggests the current value outperformance could run further given continued FII inflows in the near term,” it said.

Walmart prepares for $10 billion Flipkart IPO in US

Divya Joyce — Mon, 07 Dec 2020 06:29:38 +0000

Walmart is preparing for e-commerce major Flipkart’s $10 billion initial public offerings (IPO) in the US and has hired Goldman Sachs to assist with the listing.

As per Mint, the Bentonville, Arkansas-based Walmart is planning to sell around 25% in India’s largest online retailer, the people said, requesting anonymity.

“Work on the IPO (initial public offering) is on in full swing and the advent of the pandemic has only hastened the process, given the spectacular surge in demand on e-commerce platforms,” said one of the two people cited above.

Flipkart, which is based in Bengaluru and registered in Singapore, competes with Amazon.com Inc.’s India unit and Reliance Industries Ltd, which is ramping up its JioMart e-commerce business to challenge its rivals in the online space.

Walmart in May 2018 had acquired a 77 percent stake in Flipkart for $16 billion. The Arkansas-based retailer in 2020 raised its stake to around 82 percent after a $1.2 billion financing round.

In July 2020, Flipkart acquired Walmart India, which manages the Best Price cash-and-carry stores. The Indian e-tailer, which is registered in Singapore, also launched Flipkart Wholesale, a digital business-to-business (B2B) marketplace.

Walmart now owns an 82.3% stake in Flipkart, with US-based hedge fund Tiger Management, China’s Tencent, Accel Partners, and Microsoft Corp., among the other key investors. The IPO will offer an opportunity for minority investors to sell or pare their holdings. If Flipkart’s IPO plans are successful, it will be the largest by a company based in India on overseas exchanges.

Flipkart’s Indian entities are owned by Flipkart Pvt Ltd, which was set up in October 2011 in Singapore. Taking the Singapore company public in the US will help Walmart sidestep restrictions on Indian companies listing on foreign stock exchanges.

The Singapore-registered entity owns eight Indian companies, including Flipkart Internet Pvt Ltd, the company that runs the e-commerce marketplace Flipkart.com; Flipkart India Pvt Ltd, the wholesale business; and Flipkart Logistics Pvt. Ltd, which runs eKart.

Responding to a query, a Flipkart spokesperson said, “An IPO has always been part of Flipkart’s long-term strategy. However, the focus at present is on growth and democratizing commerce in India through technology, while continuing to unlock customer value.” A spokesperson for Goldman Sachs declined to comment. An email sent to a Walmart spokesperson on Saturday remained unanswered.

The share sale proceeds are likely to be used to expand Flipkart’s business at a time the e-commerce market is booming. Flipkart’s payments unit PhonePe, which is looking to break even by 2022, is also planning to go public by 2023. Mint first reported on PhonePe’s IPO plans on 22 April. The digital payments company, which competes with Paytm, Google Pay and Amazon Pay, too, is likely to list on a US stock exchange at a valuation of $10 billion.

Online transactions in India have surged after the coronavirus outbreak as people largely stayed indoors and avoided crowded markets and department stores.
The pandemic has pushed millions of new customers from small towns and cities to switch to online platforms, boosting valuations of e-commerce companies.

While announcing Walmart’s fresh investment in Flipkart in July, the company said that PhonePe processes annualized total payments value of more than $180 billion, and witnesses more than 500 million transactions each month on its app. The company expects at least 275 million users by the year-end.
PhonePe has also set sights on international markets and may look to take its payment solutions business to the US through Walmart.

Over the past few months, Flipkart has not only expanded its customer base and supply chain but has also widened its reach to new pin codes across India. It has also introduced multiple languages on its platform to attract customers who are not comfortable shopping using the English user interface. In July, all of Walmart’s India operations were merged into Flipkart as the parent consolidated its operations.

Goldman Sachs revises India’s GDP forecast to 10.3% for FY21

Sarthak Yadav — Wed, 18 Nov 2020 08:36:08 +0000

Goldman Sachs, the global investment bank has revised India’s GDP forecast for the ongoing financial year and expects economic activity in Asia’s third-largest economy to normalize faster than estimated, provided an effective COVID-19 vaccine is available.

According to a report, GDP growth is estimated at 13% in FY22 compared with 15.7% projected earlier. India’s gross domestic product is to contract 10.3% in 2020-21 against a contraction of 14.8% forecast in September.

Jonathan Sequeira and Andrew Tilton, economists at Goldman Sachs said, “We expect that the broad-based availability of an effective vaccine in India could allow containment policies and mobility to normalise by mid-2022.”

“This should allow a meaningful activity rebound in 2021, particularly in consumer-facing services sectors, where activity remains significantly below pre-covid levels,” they further added.

An effective vaccine in India will be able to provide a meaningful activity rebound in 2021 particularly in consumer-facing services sectors, where activity remains significantly below pre-pandemic levels however the pace of the rebound will be restrained by some economic scarring and a number of factors including a weak labour market, the hit to private sector incomes and balance sheets, tighter credit supply conditions and a limited impetus from fiscal policy.

The Purchasing Managers’ Index (PMI) for manufacturing hit a record 13-year high of 58.9 in October, while services PMI touched 54.1 for that month, marking the first month of post-lockdown growth for the sector and taking the composite index to 58.

The Reserve Bank of India (RBI), projected the economy to contract 9.5% in the current fiscal but expects growth to turn positive during the January-March, while finance minister Nirmala Sitharaman had said FY21 growth would be ‘near zero’.

India’s fiscal deficit is estimated at 8% of the GDP in FY21 and is expected to narrow to 6.5% of the GDP in FY22. The central government’s plus states’ fiscal deficit is estimated to narrow from 11.5% to 9.5% of the GDP in the same duration, the report said.

“This suggests that the total fiscal policy contribution to growth will decline further in FY22,” it further stated.

Inflation, as measured by the Consumer Price Index, is estimated at 6.2% in FY21, and is likely to decline to 4.6% in FY22 as food prices fall on easing supply restrictions, a benign monsoon, and favourable base effect, according to the report. Core inflation could also moderate given low manufacturing capacity utilisation and rupee appreciation.

“We expect RBI to cut policy rates by another 35 bp early next year,” said Goldman Sachs.

A sharp rise in the corporate interest burden and the consequent decline in debt servicing capability, potential tightening in credit supply, low manufacturing capacity utilization and the inventory overhang in residential housing could prove to be a drag on private investment seeing a rebound, Goldman Sachs further added.

Goldman Sachs to invest Rs 1,125 crores in Biocon Biologics

Akanksha Yadav — Sat, 07 Nov 2020 11:21:06 +0000

Biocon Ltd on Saturday announced that the board of its IPO-based subsidiary Biocon Biologics Ltd has approved an investment of Rs 1,125 crores ($150 million) from Goldman Sachs. As per the terms of the agreement, Goldman Sachs will be given Optionally Convertible Debentures at a post-money equity valuation of $3.94 billion and the transaction is subject to customary approvals and limitations.

Biocon management had expressed its keenness to get on board a billionaire global investor like Goldman Sachs for its IPO-bound subsidiary.

“We are extremely pleased to welcome a capital injection by Goldman Sachs at this inflexion point of Biocon Biologics’ journey in its quest for global leadership in providing affordable access through Biosimilar drugs. This transaction is a part of the overall strategic plan of value creation for our shareholders through Biocon Biologics,” stated Kiran Mazumdar-Shaw, Executive Chairperson of Biocon.

“We believe Goldman Sachs’ capital infusion in Biocon Biologics demonstrates the confidence that large global institutions have in our capability to become a global leader in Biosimilars. With three of our products commercialized in the US market, we continue to strive towards expanding access for our patients and unlocking value for our shareholders. This capital injection by Goldman Sachs will enable us to make prudent investments in R&D, high-quality manufacturing, as well as, establish a global commercial footprint. We are confident of achieving our aspiration of serving 5 million patients through our biosimilars portfolio and attaining a revenue target of $1 billion by FY22, thereby creating value for our shareholders who have supported us in this journey,” emphasised Dr.Christiane Hamacher, CEO of Biocon Biologics.

“The global growth of biosimilars, coupled with collaborative regulatory pathways, is taking place at a rapid pace to drive market competition, budget sustainability for healthcare systems and improved patient access to treatments. Biocon Biologics, with a proven R&D track record and established worldwide strategic partnerships, is well-positioned to continue to grow and be a major global player in this dynamic segment of the pharmaceutical industry,” mentioned Som Krishna, a managing director in the Merchant Banking Division at Goldman Sachs.

Biocon Biologics is committed to developing superior-quality and affordable biosimilars that dilate a patient’s access to a cutting-edge class of therapies globally. With the rising demand for biosimilars and lower drug prices, Biocon Biologics is all set to expand its access.