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September 2024 - Monthly Update - Aionion

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Venkatesan Sathish
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45 views3 pages

September 2024 - Monthly Update - Aionion

Uploaded by

Venkatesan Sathish
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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"Investing is not about beating others at their game.

It’s about controlling


yourself at your own game."

– Jason Zweig

Monthly Update – September 2024

S.No. Company Name


1. Dr. Reddy's Laboratories Ltd
2. ITC Ltd
3. Manappuram Finance Ltd

1. DR. REDDY'S LABORATORIES LTD

 On Monday (Sept. 20), Dr. Reddy's shares declined sharply after China's National Medical Products
Administration (NMPA) suspended the import, sale, and use of its Atomoxetine Hydrochloride
capsules due to non-compliance with China's "Good Manufacturing Practice for Drugs."
 However, it's important to note that this is just a temporary setback and is unlikely to significantly
impact the company's financials over the long term. As value investors, this pressure on the stock
presents a strategic opportunity to accumulate it’s shares at a fair valuation.
 Dr. Reddy's board has announced a 1:5 stock split, with the record date yet to be determined. The
split will make the stock more affordable, potentially increasing demand among retail investors and
gradually enhancing the stock's valuation.
 Dr. Reddy's Laboratories Ltd is a leading pharmaceutical company based in India, that offers a wide
range of products and services, including Active Pharmaceutical Ingredients (APIs), Custom
Pharmaceutical Services (CPS), generics, biosimilars, and differentiated formulations.
 The company has recently strengthened its portfolio through acquisitions, including Haleon's global
consumer healthcare portfolio in the Nicotine Replacement Therapy (NRT) category, women’s
health products in the US, and anti-allergy medication in the UK. Additionally, Dr. Reddy's has
entered a nutraceutical joint venture with Nestlé India.
 Dr. Reddy's has established partnerships with global pharmaceutical leaders such as Sanofi, Amgen,
Alvotech, and Theranica for various drug production and marketing initiatives. The company also
received the EU GMP certification for the manufacture of a cancer drug biosimilar, Rituximab, at
its Hyderabad facility, reinforcing its commitment to quality and innovation.

2. ITC Ltd

 ITC's FMCG products (excluding cigarettes) generated consumer spending of Rs.32,500 crore in
FY24, reflecting a 12% YoY growth. This growth has positioned ITC as the second-largest listed
packaged foods company in India by sales, surpassing Britannia Industries and trailing only Nestle.
 Recently the company has launched the innovative ‘Super Egg & Milk’ biscuit under its Sunfeast brand,
combining milk and eggs. This launch is seen as a potential category creator in the biscuit market,
marking ITC as the first major Indian company to offer such a product at accessible price points.
 ITC Ltd has announced a substantial investment of Rs. 20,000 crore over the next five years, with
30-40% allocated to the FMCG segment. This investment underscores the company's commitment
to expanding its footprint in the fast-growing FMCG sector.
 The company’s FMCG business is also rapidly expanding internationally, exporting to over 70
countries, with brands like Aashirvaad and Sunfeast driving growth in key markets like the US and
Canada.
 ITC Ltd has received approval from the CCI and its shareholders to demerge its hotel business into
a separate entity, ITC Hotels Ltd. Post-demerger, ITC shareholders will receive one share of ITC
Hotels for every ten shares held in ITC Ltd. ITC will retain a 40% stake in the new entity, with the
demerger expected to be completed by the end of FY25 or the beginning of FY26.
 The company’s 'asset-right' strategy in its hotel business has led to the addition of 24 managed hotels
out of 25 opened in the last 24 months, driven by growing interest from property owners.

3. MANAPPURAM FINANCE LTD


 Manappuram Finance Ltd, reported an 11.8% increase in net profit for Q1FY25, reaching
₹556.5crore and it’s Net Interest Income (NII) rose 18.7% YoY, amounting to ₹1,639.9 crore.
 Revenue from Manappuram's gold loan and other businesses rose 23.5% to ₹1,737 crore. The
microfinance arm reported nearly 18% revenue growth to ₹775 crore.
 The company has declared an interim dividend of ₹1 with August 26, 2024, as the record date and
September 11, 2024 as the dividend payment date.
 Manappuram Finance stock has grown significantly over the past few months, gaining over 66% in
the last one year compared to 27% rise seen in benchmark Nifty 50.
 The anticipated cut in interest rates and geopolitical tensions will act as tailwinds for the gold rates,
while rapid conversion to organised business will keep the demand for gold loans robust.
 V.P.Nandakumar, CEO & MD of Manappuram, told CNBC-TV18 that demand for gold loans has
surged this year, driven by middle-income groups requiring funds post-Covid and also discussed
about the planned IPO of Asirvad Microfinance, a non-banking microfinance subsidiary of
Manappuram Finance. The DHRP has been filed and the launch is expected in the next 2-3 months.
 In the 2024 Union Budget, the reduction of the basic customs duty on gold to 6% has put pressure
on shares of gold-based lending companies like Manappuram, a trend that continues to persist.
However, considering Manappuram Finance Ltd's strong financial performance, growing AUM, and
consistent dividend payouts, value investors may view this as an opportune moment to accumulate
the stock for long-term gains.

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