IBS TIMES 229th ISSUE

IBS TIMES

ISSUE 229th

RoadmapforIndia'sGrowthSector 2022-23

TEAM IBS TIMES

ANWESA NAYAK (EDITOR IN CHIEF)

CHAITHANYA N REDDY (SENIOR EDITOR WEBSITE)

PAYEL CHOWDHURY (SENIOR EDITOR MAGAZINE)

ANANT RAI

AYUSHI JAIN

H K AISHWARYA UNGARALA

ISHA KRISHNA

SANKET TIWARI

SHIBASRADHA NAHAK

SRIRAM RATHI

DESIGNED BY

ANWESA NAYAK

CHAITHANYA N REDDY

PAYEL CHOWDHURY

EDITOR'S NOTE

Finstreet IBS is an ICFAI Business school Hyderabad-affiliated official capital market club which aims to research the capital market as a whole. At IBS Times we serve our readers information from in and around the world and keep them up to date. We try to aid our readers with information and gauge knowledge with better investment solutions. IBS Times encompasses an independent writers club with unbiased thought and wholesome views, fairness, and honesty. We have recognized that our work can influence decisions or perceptions of our readers towards the capital market. Therefore, we commit to publishing our magazines and journals with the highest level of accuracy and impartiality. We strive to be humble and subtle in carrying out this work. Our team realizes that accuracy in the context provided to readers is imperative. Thus, we always strive to reach that level as best as we can.

This Magazine edition focuses on the effect of Budget 2022-23 on the Growth Sectors. Budget announcements do affect the stock prices of the companies that will be impacted favourably or otherwise by the proposed changes in the policies. You will see a lot of volatility in stock prices due to the announcement of the Budget. But choose wisely!! As with high returns comes high risk.

As an Editor, it gives me immense pleasure to hear from our readers. We intend to improve ourselves at every stage and would like to invite our readers to support the same. Keep following us on www.finstreetibshyd.in as well as. Please write to us and become a part of the discussion.

E-mail ID: editor.ibstimes@gmail.com

Payel Chowdhury (Senior Editor, Magazine) POC, Team IBS Times.

“Compound Interest Is The Eighth Wonder Of The World. He Who Understands It, Earns It. He Who Doesn’t, Pays It”. This is the central motto of our Club FinStreet. It has been an invigorating journey and we look forward to more.

- Payel

Organizational learning is a buzzword that refers to the process of knowledge transmission inside an organisation. Similarly at Club FinStreet, we learn, gain & share knowledge while growing together.

- Chaithanya

Emotional investment is a sure way to make a loss in the stock market. Here, we as a team work together to nurture our skills in the share market.

- Shiba

The initial few sentences of a story to be written have a certain allure. One can never predict where they will take you. That's the aim of FinStreet IBS Times where we write to express our thoughts and grow together.

- Anwesa

“Chase the story behind the stock, not the money on the table. Money will make you rich, but the story will make you wealthy.”

CONTENTS

DEFENCE

- ANWESA NAYAK

AUTOMOBILE

- AYUSHI JAIN

OIL & GAS

- CHAITHANYA N REDDY

PHARMACEUTICAL

- ISHA KRISHNA

AGRICULTURE

- PAYEL CHOWDHURY

INFRASTRUCTURE

- SHIBASRADHA NAHAK

MINING

- SRIRAM RATHI

DEFENCE

- Anwesa Nayak

India has been one of the biggest importers of defence gear over the past five years in order to get a technological edge over the neighbouring nation. With a total strength of more than 14.4 lakh (1.44 million) active members, India has one of the largest militaries in the world. With more than 51 lakh (5.1 million) soldiers, it has the largest volunteer military in the entire world.

The Indian economy heavily depends on the defence industrial sector. The market is probably going to grow faster as national security worries increase. In India, the government owns 80% of the domestic defence industry The DRDO with its 50 labs, 4 defence shipyards, and 12 defence PSUs are all part of the public sector. India has a new defence production, acquisition, and procurement policy to increase home manufacturing and decrease imports.

The second-largest military force in the world, the Indian Defense sector, is on the verge of upheaval. India ranks third among countries that spend the most on their armed forces, with its defence spending making up 2.15% of its GDP.

Atmanirbharta in Defence

To encourage independence in the defence manufacturing industry, the government has implemented many policy initiatives and reforms. These policy initiatives are intended to promote domestic defence equipment design, research, innovation, and production, hence minimizing long-term reliance on imports. The following are significant reforms and policy initiatives in the Budget 2022:

The Indian government has set up $ 130 billion over the next five to seven years for fleet modernization across the military forces. The Ministry of Defense was given $70.6 billion as part of the Union Budget for 2022–2023.

The Indian government has set a US$25 billion defence production goal by 2025, $5 billion of which will come from the export of goods and services related to aerospace and defence.

To provide the Indian defence sector with prospective chances for manufacturing military gear, the defence ministry intends to impose an import embargo on 101 defence items (including assault weapons and artillery guns).

Make in India Initiative

The government's emphasis on the "Make in India" strategy in the defence industry gives local businesses tremendous chances to further their indigenization efforts.

In order to operate as clusters of defence manufacturers that take advantage of the available infrastructure and people resources, the government has also announced the creation of 2 dedicated Defense Industrial Corridors in the States of Tamil Nadu and Uttar Pradesh.

The foreign direct investment (FDI) quota was raised from 49% to 74% via the automatic method, which led to large FDI inflows into the defence and aerospace industries.

Furthermore, there are government programmes like iDEX (Innovations for Defence Excellence) and DTIS that help encourage innovation within the defence and aerospace ecosystem (Defence Testing Infrastructure Scheme).

The capital allocations for the armed forces modernization and infrastructure development have been greatly boosted to Rs 1.52 lakh crore in the Union Budget 2022–23. In comparison to FY 2021–2022, this implies a rise of Rs 17,308 crore (12.82%). Additionally, the Capital Budget has increased by a total of Rs. 48,975 billion since 2019–20. (47.37%).

The government's commitment to improving infrastructure development and modernization in a sustainable manner as well as to attaining the goals of "Aatmanirbhar Bharat" is shown in the rise in the overall capital budget.

The domestic industry will receive 68% of the capital procurement budget in 2022–2023 compared to 58%in 2021–2022

Start-up India: In terms of operational capabilities, the Indian government's push for startups in India and collaborations to develop novel solutions could lead to increased growth for the defence industry.

With 25% of the funding designated for defence R&D, industry, startups, and universities will have access to this field. Through the use of SPVs, private industry will be encouraged to design and develop military platforms and equipment in conjunction with DRDO and other organizations.

Creation of a nodal umbrella organization that is independent and will meet testing and certification standards.

According to the self-reliant India programme, the share of domestic capital procurement, which was set at 64% of the Defence Services' Capital Acquisition Budget for FY 2021–2022, has increased to 68%.

Innovation in Defence Manfucturing

To improve the efficacy of the armed forces and advance overall technological capabilities, Indian defence technology start-ups are creating cutting-edge technologies like automated robotics, personal protection systems, navigation systems, and drones, among others.

Technology has made it possible to guarantee the last-mile delivery of government programmes.

The "Drone Rules 2021" serve as the government's conceptual foundation for launching a thriving domestic drone production business, particularly as it strives to fortify the nation's military-industrial complex.

Startups will be supported in order to assist the "drone shakti" that will advance drone usage in the military and disaster relief industries.

Top Players

India's defence stockpiles are receiving attention after Russia's invasion on Ukraine. Although the financial markets are now in a gloomy period, several defence stocks have continued their positive run.

India stated in its Budget 2022 that 68% of defence-related items will go to Indian businesses. Therefore, just 32% of projects will be contracted out. As a result, Indian defence businesses will win more contracts and earn more money. Defence stocks will reach new heights as a result of everything.

Bharat Electronics Ltd

In order to satisfy the Indian Defense Services' needs for specialist electronic equipment, BEL was founded in 1954 in collaboration with CSF, France (now Thales). Bharat Electronics Limited (BEL) is a state-owned aerospace and

and defence firm with multiple regional offices in India around nine plants. It mainly produces cutting-edge electrical goods for use in ground and aircraft applications. One of the nine PSUs under the Indian Ministry of Defense is BEL. The Indian government has given it Navratna status.

The share price of Bharat Electronics Ltd. increased from its previous close of Rs. 237.40 by 3.41%. The last traded price for Bharat Electronics Ltd.'s shares was 245.50.

The BEL stock has a market cap rank of 1 in the Defense sector. BEL's market capitalization is Rs 59,818.36 Cr.

The ROE of the company is 19.99% which suggests that the business is using its current assets to generate significant returns for its owners.

The company has been maintaining a healthy ROCE of 29.00% over the past 3 years.

Hindustan Aeronautics Ltd

With its headquarters in Bengaluru, India, Hindustan Aeronautics Limited (HAL) is a state-owned aerospace and defence business in India. One of the oldest and biggest aerospace and defence corporations in the world today, HAL was founded on December 23, 1940. As of right now, HAL is engaged in

the design and production of fighter jets, helicopters, jet engines, marine gas turbine engines, avionics, software development, spare parts supply, overhauling, and modernization of Indian military aircraft.

Shares of Hindustan Aeronautics Ltd. decreased in value by -0.23% from where it had previously closed at Rs. 1,730.00. The last traded price for Hindustan Aeronautics Ltd.'s shares was 1,726.10.

HAL stock is ranked number two in terms of market cap in the Defense sector. HAL's market capitalization is Rs 57,718.63 Cr. The ROE of the company is 22.64%.

The company has been maintaining a healthy ROCE of 26.68% over the past 3 years.

With increased budgetary support from defence clients, the cash flow position has dramatically improved and now exceeds Rs. 34,000 crores, including an advance payment of about Rs. 5,400 crores for the 83 LCA MK1A contract. As a result, HAL was able to pay off all of its bank loans. As of March 31, 2020, the company had borrowings totalling Rs. 5,775 crores and a positive cash position of about Rs. 6,700 crores at year's end.

Conclusion

The Indian defence industry has to develop into a key employer in the private sector and a strategically significant industry, with a primary goal of improving India's warfighting capabilities. Due to the technological complexity of modern weapons and the government's preference for indigenous suppliers, there is still room for growth in India's defence manufacturing industry. A proactive effort to build genuine military manufacturing lines can be useful for the expansion of MSME culture through entrepreneurial insight and innovation as the Atmanirbhar Bharat initiative in defence evolves and new opportunities are fostered.

- Ayushi Jain

The vital task of designing, developing, marketing, producing, and selling automobiles is the primary focus of the automotive industry, which is made up of a wide range of businesses and organisations. According to revenue, the automotive industry is a significant component of the global economy. However, the industry does not exclusively encompass automobiles.

In FY21, India produced 22.65 million cars annually, with 13 million of those built between April and October 2021.

Due to India's large proportion of young people and expanding middle class, the two-wheeler category dominates the industry in terms of volume. Further supporting the sector's expansion was the corporations' rising interest in investigating rural markets.

India is a significant exporter of automobiles and anticipates rapid export development in the near term. By 2022, it is anticipated that a number of initiatives by the Indian government and significant automobile producers will position India among the top four global markets for twoand four-wheel vehicles.

The Union Budget 2022, which was presented to the Parliament by Finance Minister Nirmala Sitharaman, contains significant pronouncements that would have an indirect or direct influence on the automotive industry. Although the budget did little to help the auto industry, it did bring attention to a few other areas that might help manufacturers in other areas.

New Battery Swapping Policy

This was most likely the finance minister's major statement since a new battery swapping regulation that will help the entire EV ecosystem will soon be implemented throughout the nation. The action will enable the establishment of battery-swapping stations and technologies in the nation by the leading EV players, OEMs, and charging infrastructure businesses, enabling a shift away from ICE-powered vehicles and toward electric vehicles.

Electric Vehicles for Public Transport

The introduction of clean and electric vehicles in the commercial vehicle industry was also announced by the finance minister. The action will assist automakers in creating and manufacturing electric buses and commercial vehicles for public transportation, thereby lowering the burden on vehicles powered by fossil fuels. Additionally, public transportation using battery-powered cars will undoubtedly benefit from cheaper operating costs,

Opening R&D Defence to private auto component makers

Since private manufacturers can now submit bids for the sale of automotive components to our defence arsenal, this is most likely another significant announcement made. This action can open up a new source of income and room for expansion for manufacturers of vehicle components. However, vehicle companies like Mahindra and Tata Motors have so far been successful in providing the armed forces with their cars

Expansion of National Highways

The finance minister also announced the allocation of Rs 20,000 crores for infrastructure development, transportation of people and goods. This will also help to expand the National Highways network by 25,000 km in 2022–2023 in order to improve the state of our nation's roadways, which will increase productivity and fuel economy. Effectively, improved roads will benefit car preservation as well.

Create Demand for New Vehicles In CV Space

Budget 2022 also disclosed an allocation of Rs. 20,000 crores for infrastructure projects, generating demand for new CVs and giving the commercial vehicle category a significant boost. The investment will benefit the CV industry, particularly at this time when the industry has been severely impacted by the pandemic.

MSP payments to increase vehicle demand

Along with other incentives to help the farming industry, Budget 2022 also included a minimum support price (MSP) payment of Rs. 2.73 lakh crore, which may increase demand for automobiles in rural India. Due to the fact that rural areas account for a sizable portion of sales for two-wheeler and entry-level car manufacturers, it is anticipated that the announcement will increase the response from these areas.

Top Stocks of Automobile Industry

Maruti Suzuki India Limited, formerly Maruti Udyog Limited, is a New Delhi-based Indian car manufacturer. When it was established in 1981, the Indian government held it until 2003, when Suzuki Motor Corporation of Japan purchased it. Maruti Suzuki has a market share of 44.2 percent of the Indian passenger car market as of February 2022.

The market capitalization of Maruti Suzuki is $28 billion. From Rs. 24,034.50 crores in March 2021 to Rs. 26,749.20 crores in March 2022, net sales increased by 11.3 %.

Quarterly Net Profit increased by 51.14 % to Rs. 1,875.80 crores in March 2022 from Rs. 1,241.10 crores in March 2021.

EBITDA was 2,871.70 crores in March 2022, up 37.77 % from 2,084.40 crores in the same month the previous year.

The EPS for Maruti Suzuki increased from Rs. 41.09 in March 2021 to Rs. 62.10 in March 2022. It is currently selling at Rs 8778.05 and has generated returns of 3.33 % over the previous six months and 17.74 % over the previous twelve months.

The stock price is excessively high. It appears that the share price is constantly changing. It is anticipated to yield a 10% profit.

The Tata Group includes the global Indian automobile manufacturer Tata Motors Limited, which has its headquarters in Mumbai. The company manufactures construction equipment in addition to passenger vehicles, trucks, vans, coaches, and buses. It also creates luxury and sports automobiles. The business was established in 1945 as a producer of locomotives and was formerly known as Tata Engineering and Locomotive Company (TELCO).

Net Sales in March 2022 were Rs 17,224.61 crore, down 13.2% from Rs 19,826.57 crore in March 2021. For the three months ending March 31, 2022, Tata Motors reported a net loss of Rs 1,033 crore. In the previous year, it posted a net loss of Rs 7,605 crore. EBITDA is down to Rs. 1,850.68 crores in March 2022 from Rs. 7,156.61 crores in March 2021, a decline of 74.14 %. Tata Motors' EPS is down, at -3.63%. It is currently trading at Rs 440.20 and has returned -13.67% over the past six months and 41.89% over the past year.

Due to a global shortage of semiconductors, sales of Tata Motor's high-end Jaguar Land Rover (JLR) models have decreased significantly. Chips, microprocessors, and other miniature computing devices are semiconductors.

Conclusion

The industry's current issue must be resolved right away because it is harming both the individual companies and the stock market as a whole. The Indian economy is intended to thrive over the long term, and the Budget places a strong emphasis on infrastructure development, digitization, electrification, and ease of doing business. The battery-swapping announcement is helpful to a small group of people and is going in the correct way. However, a more comprehensive, all-encompassing approach is required to create electric mobility for the passenger vehicle market.

- Chaithanya N Reddy

The oil and gas sector is one of India's eight key industries, and it has a significant impact on decision-making in all other critical sectors of the economy. Since India's economic growth is closely tied to its energy needs, more oil and gas are expected to be needed, which will make the industry very favourable for investment. As of 2021, India remained the third-largest oil consumer in the world.

The government has implemented a number of programs to meet the rising demand. It has permitted 100% Foreign Direct Investment (FDI) in a number of industry categories, including refineries, natural gas, and petroleum products, among others. As seen by the presence of Reliance Industries Ltd (RIL) and Cairn India, it now draws both domestic and global investment.

Government Initiatives

The budget proposes a 35.4% increase in capital expenditure, a 15% expansion of the national highway network and the addition of 25,000 kilometres of road. It also includes the establishment of four multi-modal logistics parks in the following year, an emphasis on electric vehicle (EV) charging infrastructure, and a new battery swapping policy.

Additionally, it suggested allocating ₹19,500 crores for the production-linked incentive (PLI) scheme for the production of polycrystalline solar modules, as well as a progressive reduction in customs tax to 7.5% for all projects capital goods imports.

Effect on Sector

Improved infrastructure connectivity would give a major momentum for oil and gas projects, with refineries being built in southern India and pipelines and city gas projects being constructed throughout the country.

Furthermore, the push for EVs and battery swapping along with new highway construction has given oil marketing businesses a fantastic opportunity to expand their retail outlets and consumer offers.

Oil and gas firms who are already converting to new energy sources, renewable energy, and environmentally friendly electricity to decarbonize their operations would have benefited from differential duty on unblended fuel to encourage biofuel blending. This has also opened up new channels for funding and assistance for environmentally friendly initiatives undertaken by oil firms in the fields of biofuels and green hydrogen as well.

Oil and Natural Gas Corporation

The largest producer of crude oil and natural gas in India is ONGC, a Maharatna firm, which accounts for around 75% of the country's domestic production. It is the sole public Indian company to be on Fortune's list of the "Most Admired Energy Companies." Additionally, the company is ranked 220 overall and 18th in "Oil and Gas operations" by Forbes Global 2000. Transparency International, which is renowned for its Corporate Governance procedures, has classified ONGC as the 26th-largest publicly traded global powerhouse. It is one of the top profit-making and dividend-paying businesses and the largest and most valuable exploration and production (E&P) company in the world.

As it can be observed in the above graph of ONGC, there is not much change in the performance of the stock before and after the budget. The stock prices have remained in the same range, i.e., ₹160 - ₹170. The stock reached a 52-week high of ₹192.95 in March 2022.

ONGC has a PE ratio of 3.95 which is lower than the industry average. This may indicate that the company is losing market share, having worse profit margins than its competitors, or having governance problems in the management, or it may simply have more debt on its books than its competitors. It can also be considered an undervalued stock. The Beta value of ONGC is 0.50 indicating that it is less volatile than the overall market.

Indian Oil Corporation Limited

With a workforce of more than 33,500 people, a sizable infrastructure for refining, marketing, and distribution, as well as cutting-edge R&D facilities, Indian Oil significantly contributes to the socio-economic growth of the nation.

Through its constantly growing network of more than 47,800 customer touch-points, over the past 60 years, Indian Oil has provided energy access to millions of people throughout the length and breadth of the nation with a mandate to ensure India's energy security and self-sufficiency in the refining & marketing of petroleum products. One of India's most valuable firms, it had a turnover of ₹6,05,924 crore (US$ 86.70 billion) and a market capitalization of ₹1,71,511 crore (US$ 26.61 billion) in FY20.

The stock price of IOC did not fluctuate much during the budget period. It remained in the price range of ₹75- ₹85. The stock reached a 52-week high of ₹94.33 in November 2021.

ONGC has a PE ratio of 4.11 which is lower than the industry average. This may indicate that the company is losing market share, or having governance problems in the management. It can also be considered an undervalued stock. The Beta value of ONGC is 0.76 indicating that it is less volatile than the overall market.

Future Outlook

With its consistently strong economic growth, India's energy demand is expected to increase more quickly than that of any other major economy. By 2035, India's energy demand, which was 753.7 megatonnes in 2017, is predicted to increase by double to 1,516 megatonnes. The country's contribution to the world's primary energy consumption is also anticipated to double by 2035.

By 2023, India wants to increase its refining capacity by half, to 450–500 million tonnes and the government intends to build over 5,000 compressed biogas (CBG) facilities.

When oil and gas prices are high, the equities in this sector can generate sizeable capital gains from rising share prices and lucrative dividend payments. Oil and gas is one of the riskiest investment sectors when all factors are taken into account. These stocks can be wise investments if made at the correct moment due to the industry's upside potential during times of economic boom. So, keep a keen eye on this sector before you invest!

PHARMACEUTICAL - Isha Krishna

India's pharmaceutical market is now estimated at $41.7 billion. India is a major exporter of Pharmaceuticals, with over 200+ countries served by Indian pharma exports. India meets more than half of Africa's need for generic drugs, as well as 40% of generic drug demand in the US and 25% of all UK drug demand.

India is a major source of the DPT, BCG, and measles vaccines and also accounts for around 60% of the world's vaccine demand. India provides 70% of WHO's resources.

5.15% of the nation's total exports in April were made up of pharmaceuticals and drugs. Pharmaceutical, medicinal chemical, and botanical product manufacturing's average index of industrial production for the fiscal year 2021–2022 is 221.6, up 1.3% from the previous year. Drug and pharmaceutical exports reached USD 2067.63 mn in May 2022, registering a positive growth rate of 10.28% over May 2021.

Indian pharmaceutical exports increased by 103% between 2013–14 and 2021–22, from INR 90,415 crores to INR 1,83,422 crores. The Pharma Sector had its best-ever export result in 2021–2022. The rise of exports by approximately $10 billion in just 8 years is astounding.

The finance minister, Ms. Nirmala Sitharaman, gave the Parliament the Union Budget for 2022–2023 on February 1st, 2022. The following is a concise summary of the major points that are pertinent to the pharmaceutical and healthcare sectors.

Budget Allocation

The budget for the pharmaceutical and healthcare industries is INR 86,200 crores.

Justification and decrease of customs duties on chemicals and other imports that affect the pharmaceutical and healthcare industries.

Some significant adjustments in the basic customs duty (BCD) with regard to medical devices and medications were announced by way of omission and rationalization of entries, in line with the "Make in India" agenda.

From February 2, 2022, increase the customs duty on sodium cyanide, X-ray machines, and parts used to make X-ray machines.

Effective February 2, 2022, the Health Cess on imported surgical needles used to make surgical sutures has been withdrawn.

Income Tax

Beginning on April 1, 2022, pharmaceutical corporations will no longer be able to deduct business expenses for the gifts and other favors they give doctors.

Education and Healthcare Cess is a further tax levied on the taxpayer to pay for a particular government benefit program.

Blended Finance

The government will support a blended finance structure in which private fund managers will handle the funds and the government will only contribute 20% of the total. This will probably increase the pharmaceutical industry's potential for manufacturing, R&D, innovation, and start-ups, creating new job possibilities.

National Digital Health Ecosystem

PM Narendra Modi announced the Ayushman Bharat Digital Mission (ABDM) in September 2021 with the goal of developing a seamless online platform that would promote interoperability throughout the digital health ecosystem.

As a result, Ms. Nirmala Sitharaman formally unveiled an open platform for ABDM's National Digital Health Ecosystem. 200 crore Indian rupees have been set aside for this purpose.

A National Tele Mental Health Program has also been launched by the government to address citizens' mental health concerns.

Healthcare Missions and Central Sector Schemes Income Tax

Compared to the previous year, the annual funding allotted to the National Health Mission has increased by about 7%.

The following announcements concern the entire health care program:

The funding for the health infrastructure was increased to INR 978 crore, and INR 10,000 crore has been granted to the Pardhan Mantri Swasthya Suraksha Yojana.

Budgetary support for the Pradhan Mantri Ayushman Bharat Health Infrastructure Mission was significantly increased. It is intended to send INR 4176 crores of the budgeted funds to the states to assist wellness centers.

Four programs—Mission Shakti, Mission Vatsalya, Sakasham Anganwadi, and Poshan Mah 2.0—were introduced to give mothers and children a range of benefits. The budget for this year calls for upgrading two lakh Anganwadi.

Sun Pharmaceutical Industries Ltd. is a global specialty pharmaceutical firm. Additionally, the business produces pharmaceutical active components. Their products are recommended in chronic therapy fields like cardiology, psychiatry, neurology, gastrointestinal, diabetology, and respiratory in branded markets.

Sun Pharmaceutical Inds. Ltd. currently has a market capitalization (Cr) of 210,757.58 Indian rupees. The company has a TTM EPS of 13.47 INR, a 1.14% dividend yield, and a P/B ratio of 4.13.

The overall revenue for Sun Pharmaceutical for the most recent quarter was 5,571 million INR, an increase of around 14.6% over Q4 of the prior year, and the EBITDA margin was 24.3%. After removing extraordinary items at Rs. 39,357 million and an exceptional tax benefit worth Rs. 764 million, the adjusted net profit for the quarter came in at Rs. 15,821 million, an increase of 18% YoY. The reported net loss for the fourth quarter of FY22 was Rs. 22,772 million. Dividends from UPL are given out annually. The anticipated next dividend per share is 10.00 Indian rupees. The dividend Yield (TTM) % is at 1.47% right now.

Compared to the debt as of March 31, 2021, the corporation has paid off the debt of around US$ 355 million in FY22. Sales of formulations in India totalled 127,593 million for the entire fiscal year FY22, an increase of 23% from the same period in 2017. Sales during Q4FY22 totalled Rs. 30,956 million, an increase of 16% over Q4 of the previous year, and represented 33% of total sales. According to the AIOCD AWACS MAT March-2022 study, Sun Pharma is ranked first and has an 8.3% market share in the approximately Rs. 1,688 billion Indian pharmaceutical sectors. The business introduced 11 new goods to the Indian market in Q4FY22. Revenues for Sun Pharmaceutical Industries Limited climbed by 15% to RS386.54B for the fiscal year that concluded on March 31st, 2022. The amount of net income rose by 13% to Rs. 32.73B. Due to favourable market conditions, revenues show a growth in demand for the company's goods and services.

Active pharmaceutical ingredients (APIs) and intermediates are produced by DiviS Laboratories Ltd. The business quickly broadened its scope of operations to offer fully integrated turnkey solutions to the domestic Indian pharmaceutical industry.

They are actively involved in creating alternative, non-patent infringing API processes that will help innovators manage the late life cycle and top generic medicine producers.

Divis Laboratories Ltd. currently has a market capitalization (Cr) of 98,960.05 Indian rupees. The company has a TTM EPS of 111.52 INR, a 0.80% dividend yield, and a P/B ratio of 8.44.

Divi's Lab's Q4 net increased by 78% to Rs 895 crore, while Q4 revenue increased by 41% to Rs 2,518 crore. Divi's Laboratories reported on Monday that for the three months ended March 31, 2022, its consolidated net profit climbed by 78% to Rs 895 crore. Perhaps if the company's performance for the upcoming quarters may be flat or even drop, it has positive business trends to support it.

By 2024 and 2030, respectively, the Indian pharmaceutical market is projected to grow to $65 billion and $120 billion. Pharmaceutical stocks are a fantastic illustration of investments that are safe havens in uncertain times in the current "risk off" environment on Wall Street. Given that people will continue to spend money on medicine regardless of inflation or job trends, the health care sector is typically one of the most stable ones.

- Payel Chowdhury

The agricultural sector has always been a major sector and provides a living for approximately 58% of India's population. According to the first advance estimates of National Income FY22, Agriculture and Allied Sectors account for 18.8% of total GVA (at current prices). Following the pandemic-induced contraction, consumer spending in India has resumed growth in 2021, increasing by up to 6.6%. Agriculture and related activities grew by 3.6% at constant prices in FY21. The Indian food industry is poised for massive growth, with its contribution to the global food trade increasing yearly due to its enormous potential for value addition, particularly in the food processing industry. The Indian food and grocery market is the world's sixth largest, with retail accounting for 70% of total sales. The Indian food processing industry accounts for 32% of the total food market, is one of India's largest industries, and ranks fifth in terms of production, consumption, export, and expected growth.

We cannot deny that agriculture is a critical sector of the Indian economy and a critical part of India's recovery process. The Union Budget 2022-23 reflects the government's commitment to strengthen further the sector and its projection of agriculture as a growth pillar and a major contributor to India's development model. Due to the months-long farmers' agitation demanding guaranteed MSP for their farm yield, the Central Government must repeal three controversial farm reform laws enacted in 2020. The overall allocation for the sector increased marginally to Rs 132,513.62 crore in 2022-23, up from Rs 126,807.86 crore in 2021-22 revised estimates (RE).

Finance Minister Nirmala Sitharaman presented the Union Budget for 2022-23 on February 1, 2022. The following are the key elements influencing the agriculture sector and the Indian peasant that have been highlighted in the Budget 2022:

The fiscal year 2022-23 will allocate Rs. 2.37 lakh crore to direct payments for minimum support price (MSP) to wheat and paddy farmers. The wheat procurement in Rabi 2021-22 and the estimated paddy procurement in Kharif 2021-22 will cover 1,208 lakh metric tonnes of wheat and paddy from 163 lakh farmers, as well as 2.37 lakh crore in direct MSP payments to their accounts.

Indian Railways will assist small farmers and Small and Medium Enterprises by developing new products and providing efficient logistics services.

The government of India will provide 'Kisan Drones' to aid in crop assessment, digitization of land records, and spraying of insecticides and nutrients.

Organic farming or chemical-free natural farming would be promoted through the PPP model for the delivery of digital and high-tech services to Indian peasants. Farmers would be assisted by the Centre and the States in adopting appropriate varieties of fruits and vegetables, as well as production and harvesting techniques.

A fundraiser is planned through NABARD under the co-investment model to assist agriculture and rural enterprise startups in activating the farm produce value chain. Their role also includes FPO support, farm-level rental machinery for farmers, and technology, including IT-based support.

Revision of agricultural university curricula to familiarise students with natural zero budget and organic farming, modern agriculture, value addition, and management.

The Central Government will promote domestic production of oilseeds through a comprehensive scheme to reduce reliance on imports.

Annual CO2 savings of 38 MMT from co-firing 5-7% bio-mass pellets in Thermal Power plants would help farmers by providing extra income and job opportunities, as well as reducing stubble burning in agricultural fields.

UPL Limited, formerly known as United Phosphorus Limited, is an Indian multinational corporation that produces and sells agrochemicals, industrial chemicals, chemical intermediates, and speciality chemicals, as well as crop protection solutions. The company, headquartered in Mumbai, Maharashtra, is involved in both agro and non-agro activities. The company's primary source of revenue is agribusiness, which includes the production and marketing of conventional agrochemical products, seeds, and other agricultural-related products.

The current market capitalization of UPL is 510.864B INR. The company's TTM EPS is 47.45 INR, its dividend yield is 1.47%, and its P/E ratio is 14.34. The next UPL LTD earnings date is August 3, with a 7.33 INR estimate.

UPL's total revenue for the last quarter was 158.61B INR, which is 40.40% higher than the previous quarter. The net income for the fourth quarter of 21 is 13.79 billion INR.

UPL dividends are paid on an annual basis. The next dividend per share is expected to be 10.00 INR. The dividend Yield (TTM)% is currently 1.47%.

UPL is currently overvalued by 32%. The stock is currently trading on the market for Rs 747.90, compared to the intrinsic value of Rs 567.03. This means that the buying opportunity has most likely passed for the time being. Furthermore, it appears that UPL's share price is quite stable, which could mean two things: first, it may take a while for the share price to fall back down to an attractive buying range, and second, there may be fewer opportunities to buy low in the future once it reaches that value. Because of its low beta, the stock is less volatile than the broader market. The price has risen above its true value, so there is no gain from mispricing. However, the positive outlook is encouraging for UPL, which means it's worth looking into other factors in order to capitalize on the next price drop.

PI Industries is an agri-sciences company that is involved in the production of generic molecules and chemicals. It manufactures agrochemicals such as insecticides, herbicides, fungicides, and other formulations. The company also offers molecule design, chemical analysis, and distribution services.

The current PIIND market cap is 444.542B INR. The company's EPS TTM is 55.63 INR, the dividend yield is 0.20%, and P/E is 52.68. The next PI INDUSTRIES earnings date is July 28, the estimation is 14.62 INR.

The total revenue of PIIND for the last quarter is 13.95B INR, and it's 2.87% higher compared to the previous quarter. The net income of Q4 21 is 2.04B INR.

PIIND dividends are paid interim with the last dividend per share being 3.00 INR. As of today, the Dividend Yield (TTM)% is 0.17%.

The current price of ₹2871.30 is lower than the previous day's closing price of ₹2929.90 and represents a change of nearly ₹134.46 during intraday trading. Price is higher than the 20-day moving average of ₹2648.26.

Pi Industries (PIIND) is trading above an important moving average line, which it has been trading above for quite some time. This is a positive sign, and the stock could continue to rise and move higher!

As of 14 Thu Jul 2022, Pi Industries' stock closed at 2871.30 and moved within a range of 2857.70 & 2955.00 with a total volume of 252588 during the day, representing a -2 percent decrease from the previous closing of 2929.90 and a volume of 0.476 times the previous volume of 531064.

Pi Industries Stock is expected to be in an uptrend in the short term, according to technical analysis, but investors should avoid taking a SHORT or SELL trade in this stock. Rather, look for BUY or LONG opportunities in Pi Industries PIIND at this time. The stock is rising and may continue to rise.

The agriculture industry welcomed the Budget's emphasis on infrastructure development and expanding the role of technology. The Budget, presented against the backdrop of a strong economic rebound, has laid the groundwork for agriculture to achieve sustained higher growth. In the next 25 years, there will be a greater emphasis on digital infrastructure for the incorporation of agricultural technologies through public-private partnerships (PPPs). It is encouraging to see the government recognize the importance of agriculture digitization and the role of startups in promoting the Indian agricultural sector in the budget. The adoption of technology will be a game changer in enabling smallholder Indian farmers to become Agripreneurs. Financing Agri and rural enterprises with blended capital and encouraging publicprivate partnerships to deliver digital services to farmers will help the burgeoning agritech sector.

INFRASTRUCTURE

- Shibasradha Nahak

Infrastructure is one of the prominent characteristics of driving the economy of a country. It is an underlying foundation that the entire system revolves around and growth stimulus relies upon. The government places a strong emphasis on this sector because it is crucial to India's overall growth and because it can help to ensure that world-class infrastructure is built in the nation on schedule. Power, bridges, dams, highways, and urban infrastructure development are all included in the infrastructure industry.

Advantages for India

Robust Demand:

India is going to witness the third largest construction market across the globe by 2022. For a broader augmentation, it would require an investment of Rs.50 trillion, which would directly benefit construction companies.

Attractive opportunities:

India, the US, Israel, and UAE launched a new quadrilateral economic conference in November 2021 to concentrate on regional infrastructure development projects and improve bilateral cooperation. This tie-up is going to provide leverage for India because of cheap labour, reliability, and scalability. With the introduction of the "Infrastructure for the Resilient Island States" program in November 2021, India will have a significant change to improve the lives of other vulnerable nations across the globe.

Policy Support:

The government allotted Rs. 13,750 crores to AMRUT and Smart Cities Mission in the Union Budget 2021 to fund programs like "Housing for All" and "Smart Cities Mission."

Under the automatic route, 100% FDI is allowed in several infrastructure-related sectors. The PM GatiShakti - National Master Plan for multimodal connectivity to economic zones was highlighted in the Union Budget 2022–2023 The PM GatiShakti National Master Plan would integrate everything, from highways to railways, from aviation to agriculture, as well as numerous ministries and departments.

Increasing Investments:

Between April 2000 and December 2021, the construction development and infrastructure activity sectors received FDI inflows of US$ 26.17 billion and US$ 26.30 billion, respectively. In October 2021, an announcement of Rs. 100 lakh crore master plans for multi-modal connectivity with the intention of building infrastructure to reduce logistic costs and boost the economy.

Government Initiatives

Railways and Metro Rail:

In FY21, Indian Railways has the highest-ever total plan CAPEX of Rs. 2.15 trillion, which contrasts this with the Union budget for 2022-23 projects the Indian Railways attained a highest-ever capital expenditure of Rs 2.45 trillion. And, this CAPEX is going to increase in upcoming years as railways keep on expanding to non-hierarchical places across India.

Keeping metro rail as one of the reliable means of transport the government has allocated a total of Rs 18,968 crore for metro projects.

Roads and Airports: Telecom, Energy, and Power:

The government set out Rs. 60,241 crores for road construction and Rs. 57,350 crores for national highways in the Union Budget 2021, while setting budget 2022 side by side the CAPEX has marginally increased to Rs.68,000.

Through budget 2021, the government announced Rs. 26,863 million for a revamp in solar power, but while looking at budget 2022 the government allocated Rs 33,655 million, and this step showcases governments supremacy in transforming from traditional based energy to clean energy.

In Union Budget 2021, Rs. 9,000 crores was allocated to improvise telecom infrastructure in the country, but while on budget 2022 the major focus was on a product-linked incentive scheme for creating a robust 5G ecosystem.

Budget 2021 allocated Rs. 42,824 crores (US$ 5.88 billion) for the energy sector, while in budget 2022 an additional Rs 19,500 crores are allocated for Product linked incentives for high-efficiency solar modules to achieve a target of 280GW of solar power by 2030. And, this allocation will increase substantially in upcoming years.

Key Private Players with Major Projects

Future multi-bagger stocks

IRB INFRA:

The stock is trading at a discount of 30.85% from its 52-week high, so building up a position in every dip can provide exponential returns in a bull market.

The stock has a ROCE of 5.94%, which showcases that the company has marginal EBIT with decent capital employed.

The company has an ROE of 6.95% which indicates that the company is generating reasonable profit for its shareholders from existing assets.

The debt-to-equity ratio is 3.51 which implies that the company is more relying on debt financing, and because of that, the profit for ROE is marginally less.

VOLTAS:

The stock is trading at a discount of -26.92% from its 52-week high, so SIP-based accumulation would be feasible to get value out of it.

The stock has a ROCE of 14.4% which implies that the company has high EBIT with lesser capital employed on the firm, which showcases the firm’s efficiency in using capital.

The debt to equity ratio is 0.03 which showcases that the equity of the company’s shareholders is bigger, so it doesn’t require debt as a source to finance its business.

The firm is generating an ROE of 11.06% which implies that the company is generating substantial returns for its shareholders with its existing assets.

Conclusion

As India is a hunger-driven country in terms of energy, power, etc., so deploying capital on infrastructure can provide exceptional returns over the long run. And, with rapid urbanization, the world’s largest rural population can provide boundless opportunities for companies and value for shareholders.

India has been exceptionally gifted by nature with minerals, which are the foundation of any country's economic success. There are numerous indications that the country has long engaged in the extraction of minerals such coal, iron ore, copper, and lead-zinc. However, the first history of mining in India is only known to have occurred in 1774, when the East India Company authorised an English Company to mine coal in Raniganj. The Kolar Gold Fields saw the beginning of gold mining in 1880 by M/s John Taylor & Sons Ltd. Just seven years after the world's first oil well, which was discovered in Pennsylvania State, USA in 1859, the first oil well was sunk at Digboi.

Proved Reserve

The reserves, in this case, are calculated based on measurements found in outcrops, trenches, mine workings, and boreholes, as well as their extension over an acceptable distance of up to 200 metres (m) based on geological evidence. A second line drawn around 200 metres in from the outcrop will identify a block of coal that can be considered proved based on geological evidence in cases where little to no exploration work has been done and the outcrop is longer than one km.

Indicated Reserve

The locations of observation for indicated reserves are 1,000 metres apart, although they might be 2,000 metres apart for beds with confirmed geological continuity. Therefore, the block of coal to be considered as indicated will be delineated by a line drawn 1,000 to 2,000 metres from an outcrop.

Inferred Reserves

This refers to coal for which quantitative estimates are made solely on the basis of a general understanding of the geological makeup of the bed, but for which no measurements have been made. The estimations are greater than 1,000 to 2,000 m from the outcrop and are based on an imagined continuity for which there is geological evidence.

India now has a total coal resource level of little over 194 billion tonnes in coal seams that are at least 0.9 meters thick and extend to a depth of 1200 meters. This amounts to slightly more than 1% of the world's coal reserves. Only 15% of the 194 billion tonnes of total coal reserves are of the coking form, with the remaining 85% being non-coking coal. Additionally, 33% of the reserves are classified as "Proved," 44% as "Indicated," and 23% as "Inferred." The coal found between 600 and 1200 meters below the surface that might be economically exploited for development in the future could be categorized as "Resources" and the remaining coal as "Reserves".

Initiatives taken by Government

Iron ore, Bauxite, Chromium, Manganese ore, Baryte, Rare Earth, and Mineral salts are all abundant in India.

Due to reforms like the Make in India Campaign, Smart Cities, Rural Electrification, and a focus on developing renewable energy projects under the National Electricity Policy as well as the increase in infrastructure development, the metals and mining sector in India is anticipated to undergo significant reform in the coming years.

On March 30, 2022, the Ministry of Coal began the fifth tranche, the second attempt at the fourth tranche, and the second attempt at the third tranche of the commercial coal mine auction.

Production levels of significant minerals in March 2022 were as follows: coal (958 lakh tonnes), lignite (60 lakh tonnes), bauxite (2,031 thousand tonnes), chromite (414 thousand tonnes), copper (9 thousand tonnes), gold (169 kg), iron ore (270 lakh tonnes), lead (39 thousand tonnes), manganese ore (269 thousand tonnes), zinc (182 thousand tonnes), limestone (373 lakh tonnes), phosphorite (158 thousand tonnes), magnesite (tonnage 12, 000 tonnes)

Iron Ore (19.2%), Phosphorite (17.4%), Lignite (16.2%), Gold (13.8%), Zinc conc. (10.9%), and Magnesite production of significant minerals is increasing in March 2022 compared to March 2021. (6.3%).

2020 saw the auctioning out of 19 coal blocks for industrial mining. With a combined peak capacity of 51 MPTA, these mines are estimated to generate approximately INR 7,000 cr in total revenue.

Basic metals manufacturing's average industrial production index for the fiscal year 2021–2022 is 177.3, up 18.4% from the previous year.

Mica, coal, and other minerals, including processed minerals, saw positive growth of 9.04% in May 2022 exports, valued at USD 429.56 mn.

To create a framework for sustainable development in the mining industry in India, mining leases are given a star grade.

In order to prevent unlawful mining, the National Remote Sensing Centre (NRSC), ISRO, and the Indian Bureau of Mines (IBM) signed an MoU in January 2016 to carry out a pilot study on "monitoring of mining activities using satellite imagery."

Through the use of autonomous remote sensing detection technology, the Mining Surveillance System (MSS) is introduced to monitor unlawful mining.

Under the Pradhan Mantri Khanij Kshetra Kalyan Yojana [PMKKKY], the District Mineral Foundation Fund (DMF) was formed for the welfare of individuals and communities impacted by mining.

To draw private exploration companies, the National Mineral Exploration Policy has been published.

100% automatic FDI is allowed for the mining and exploration of both metal and non-metal ores.

Problems faced

India's mining industry has grown at an average yearly pace of 4 to 5%. The idea of "development at any costs" seems to be the norm today. This is a fairly high price to pay for progress. Unsustainable development is the result of this "mad rush" to generate.

The price of progress has also been relatively costly in the mining industry. In his book "Coal Industry in India," the late S Mohan Kumarmangalam, the then-Minister of Steel & Mines, provided a harsh but vivid account of the coal industry landscape. Smaller units, particularly those dispersed throughout the Jharia and Raniganj areas, typically exhibited this trait.

The lawful wages owed to the workers were stolen. Large portions of the industry still used improper mining techniques, slaughter mining, and no environmental protection. The countless proposals made over the years by the various committees were successfully stopped in their tracks by the mine owners. The interests of the mine owners were defended by "Lathials" or musclemen. Numerous private collieries appeared to operate under the principles of widespread corruption, forced labour, shady and duplicate records, underreporting of production, non-payment of full wages, extended shifts without payment of lead or lift, lack of safety and welfare measures, theft of coal pillars, selective, seasonal, shallow depth mining in a haphazard manner, etc.

Mine safety laws were frequently broken. The huge flames and collapses were caused by improper mining techniques used over the years, and the nation paid a hefty price in terms of lost coal reserves and fire suppression. Poor ventilation, insufficient support, and an obvious lack of safety equipment plagued the mine. The risks that employees were subjected to had come under harsh criticism. A hazardous scenario had arisen, and the government could no longer watch helplessly. As a result, the coal industry was able to be nationalized between 1971 and 1973.

In the years to come, increased mining initiatives are anticipated to be seen. Safety issues undoubtedly take on an increasingly important role when mine operators start to search for ways to increase productivity and reduce costs, and they start to become an essential element even when only looking at economic factors. In addition, a safe and decent workplace is becoming an increasingly important social requirement in today's society. As a result, outcomes are required. Tools and expertise are available, and it is technically feasible to attain goals that would have enormous positive social and economic effects.

Conclusion

For the wise utilization of mineral resources, the clearance procedure needs to be expedited. To prevent mine-related accidents, strict enforcement of mining-related regulations is required, particularly in relation to the prohibition of Rat-Hole and unscientific mining. Make sure block allocations are transparent, and build rule-based order. The application of technology to improve surveillance and mineral prospecting methods. The displaced population must be properly rehabilitated, and tribal rights must be upheld in accordance with the law. Before distributing the projects, proper environmental impact assessments (EIA) and social impact assessments (SIA) must be carried out. DMF should be used to build physical and social infrastructure, and attempts should be made to include the local community in the process.

FINANCIAL TRIVIA Money For Thought

The economic opportunities for positive externalities are much more apparent now that the Union Budget 2022 has been announced. Markets in economic recovery are brimming with opportunity, both in the public and private sectors. Even as the pandemic enters its third wave, which is expected to become endemic, budget expectations are forward-looking, with a focus on revival and public Capex. Based on the unidirectional returns of 2021, which were greater than 23%, 2022 is likely to be volatile, with the possibility of a new high in this calendar year. Domestic and international events will cause the majority of the swings in 2022. We anticipate that FY23 will be the period that reigns in post-COVID reactions, with Budget 2022 setting the pace for growth. The multiplier effect of incentives provided to industries is expected to boost employment, with obvious ripple effects on the economy.

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