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Both indices, Nifty and Sensex opened the day in green, with Nifty trading at 24,352.90 points, up by 28 points, while Sensex was trading at 79,996.62, up by 71 points as of 9:28 am today. All broad market indices opened the day in green, except for India VIX, which fell by 1.28% during early trade. Tata Steel, ICICI Bank, TCS, Tata Motors and Titan took lead in early morning trade, while ITC, HDFC Bank, Divis Labs, Mahindra and Mahindra and Bajaj Auto were amidst the laggards. Auto, FMCG, pharma, realty and healthcare indices opened the day in red, while IT, media, PSU banks and consumer durables managed to get an early lead. Anand Rathi, TCS and GNA Axle will be declaring their Q1FY25 results during the day. Mr. Aditya Gaggar, Director of Progressive Shares notes that yesterday, mid and smallcaps led correction dragged the index lower to settle trade at 24,324. At a record level, he sees a bearish engulfing candle on the daily chart which indicates a potential reversal of the trend. But, as he explains, to confirm a reversal, a convincing move below 24,200 is a must. Till then uptrend will remain intact. "On the other hand, a level of 24,460 will be considered an immediate hurdle. At present, BankNifty is around a make-or-break level point of 52,100. In case of a reversal, it is likely to soar to 52,600; on the other hand, a sustainable move below 52,100 will drag the Index towards 51,900. In yesterday's trade, buying traction was seen in the Insurance stocks, we believe the momentum will continue going forward as well. We continue to remain bullish on the FMCG and pharma sectors. Quarterly earnings of Q1FY25 can add to stock-specific volatility in the markets", he continued. Sameet Chavan, Head Research, Technical and Derivative - Angel One explains that currently, prices remain elevated and are trading within a range, suggesting that market participants are awaiting a catalyst for decisive movements. "Going ahead, the upcoming results season could potentially provide such a catalyst; any disappointing results within heavyweights might finally trigger the overdue price correction. Yesterday, the trading range was observed between 24140-24100 on the downside and 24460-24500 on the upside, marking key levels for the weekly expiry. Traders should monitor these levels closely and adjust their strategies accordingly. Earlier in the week, there was notable activity in the Pharma and FMCG sectors, whereas yesterday, paint and Insurance stocks were leading the charge. Focusing on the daily thematic trends can offer opportunities for outperformance", he advises. <meta content="cms.next" name="cmsei" />

Stock market today: TCS to declare quarterly results, auto, pharma, FMCG lag in early trade

Both indices Sensex and Nifty saw significant falls from their previous record highs to close the day in red. While Nifty closed at 24,321.25 points, down by 111.95 points (0.46%), Sensex tumbled around 426.87 points to close at 79,924.77 points, down by 0.53%. Asian Paints (up by 3.29%), SBI Life (up by 2.18%), Divis Labs (up by 1.91%), Britannia (up by 1.57%) and Grasim (up by 1.37%) were amongst the day's top gainers. On the other hand, Mahindra and Mahindra (down by 6.82%), Hindalco (down by 2.33%), Tata Steel (down by 2.22%), TCS (down by 1.70%) and HCL Tech (down by 1.48%) were amongst the day's laggards. Amongst broad market indices, only Nifty Next 50 (up by 0.05%) and India VIX (up by 0.66%) closed the day in green. In sectoral indices, financial services (up by 0.20%), FMCG (up by 0.28%), pharma (up by 0.39%), healthcare (up by 0.38%) and oil and gas (up by 0.05%) ended the trading session in green. Most sectors were in red, with sectors like IT (down by 1.03%), media (down by 1.76%), metal (down by 1.61%), auto (down by 2.02%) and PSU Bank (down by 1.4%) losing over 1%. As Mr. Aditya Gaggar Director of Progressive Shares notes, "in the opening trade, a steep fall was observed in the mid and smallcap segments, putting pressure on the index to trade lower with a loss of over 200 points. As the day progressed, the markets gradually started to recuperate their losses and finally settled the trade at 24,324.45 with a loss of 108.75 points". "On a sectoral front, pharma was the top gainer followed by FMCG; and on the flip side, auto was the major laggard by ending the day with a loss of 2.02%. The media and metal sectors underperformed as well. Broader markets also recovered from the lower levels where midcap more or less moved in tandem with the frontline index while small caps underperformed. On the daily chart, the Index has made a bearish engulfing candlestick pattern at the record levels which indicates a potential reversal of the trend. A convincing move below 24,200 will confirm a short-term trend reversal, but till then uptrend will remain intact. On the other hand, a level of 24,460 will be considered an immediate hurdle", he continued. Out of the 2,805 stocks traded during the day, 897 saw advances, while 1,833 declined and 75 stocks remained unchanged. 145 stocks hit their 52-week high, while 18 stocks also touched their 52-week low price. 70 stocks managed to remain in upper circuit, while 123 stocks also hit the lower circuit. Shrikant Chouhan, Head Equity Research, Kotak Securities notes that the benchmark indices today witnessed profit booking at higher levels. On daily charts, the index has formed a bearish candle, which indicates that this weak sentiment is likely to continue in the near future. "We are of the view that, today’s day low or 24,150/79,400 would act as a key support zone for the day traders. If the index succeeds to trade above the same, then it could retest the level of 24,450/80,500. Further upside may also continue which could lift the index till 24,500-24,550/80,700-80,900. On the flip side, below 24,150/79,400 selling pressure is likely to accelerate.", he said. According to Mr. Ajit Mishra – SVP, Research, Religare Broking Ltd, "the intraday slide in the index has slightly dented sentiment, but resilience in certain pockets limited the damage. We believe it is prudent to refrain from aggressive long positions in the index for now and wait for further clarity. Additionally, we have started seeing erratic swings across the board, which are likely to intensify with the start of the earnings season. Traders should prefer a hedged approach and closely monitor their position sizes". <meta content="cms.next" name="cmsei" />

Stock market closing: Auto, IT, Media sectors close in red, Asian Paints, SBI Life amongst top gainers

Both indices, Nifty and Sensex, closed the day in green, with Nifty up by 0.46% to close at 24,433.20 points, while Sensex breached the 80,000 mark to close at 80,351.64 points, up by 0.49%. All broad market indices also ended the day in green, with India VIX climbing by 3.38%. As for sectoral indices, IT (down by 0.20%) and oil and gas (down by 0.17%) were the only indices trading in red at the end of the day. Most indices registered marginal growth, with auto up by 2.23%, pharma up by 1.57%, PSU banks up by 1.28%, realty and healthcare up by 1.14% each, and consumer durables up by 1.74%. <h2>Stocks in Action </h2>Out of the 2,792 stocks traded during the day, 1,403 saw advances and 1,316 saw declines, while 73 stocks remained unchanged. 179 stocks hit their 52-week high price, while 16 stocks hit their 52-week low as well. 120 stocks hit their upper circuit, or the highest permissible trading price during a single session, while 86 stocks hit the lower circuit, or the minimum price allowed during a singular trading session. Maruti (up by 6.52%), Divis Labs (up by 2.37%), Mahindra and Mahindra (up by 2.23%), Titan (up by 1.89%0 and Hindalco (up by 1.86%) were amongst the day's top gainers. On the other hand, index heavyweight Reliance was down by 0.80%, followed by Tata Consumer (down by 0.76%), Bajaj Finance (down by 0.61%), ONGC (down by 0.60%) and Kotak Bank (down by 0.44%), were amongst the day's laggards. As Shrikant Chouhan, Head Equity Research, Kotak Securities notes, "today, the benchmark indices registered a fresh all-time high, after a promising uptrend rally the Nifty closed 97 points higher while the Sensex was up by 391 points. Among Sectors, auto index outperformed rallied over 2 percent whereas intraday profit booking were seen in selective IT, Oil and Gas stocks. After a positive opening, market held the positive momentum throughout the day. Bullish candle on daily charts and higher bottom formation on intraday charts indicate further uptrend from the current levels". "For the trend following traders now, 24,350/80000 would act as a key support zone. We are of the view that, as long as the market is trading above it the bullish sentiment is likely to continue. However, below 24,500/80,000 the sentiment could change. Below the same, an uptrend would be vulnerable", he continues. Mr. Aditya Gaggar Director of Progressive Shares highlights the divergence that was seen in today's trade, where mid and small caps remained rangebound throughout the day. "Major buying traction was seen in the index stocks, particularly in the auto counters which helped Nifty50 to settle the trade at yet another record level of 24,433.20 with gains of 112.65 points. Apart from auto, pharma and PSU banking sectors outperformed while IT was the major laggard. The index has breached its previous high convincingly by forming a big green candle and opening the door for further rally towards the 24,520-24,600 zone. 24,340 will be considered as strong immediate support", he notes. <meta content="cms.next" name="cmsei" />

Stock market closing: Sensex closes above 80,000, auto, pharma and realty indices rally

Both indices, Nifty and Sensex, opened the day in green. While Nifty was up by 0.13% at 24,351.30 points, Sensex was trading marginally above 80,000 points at 80,142.30 points, up by 0.23%, as of 10:20 am. All broad market indices opened in the green, with India VIX jumping up by 2.92%. As for sectoral indices, Nifty PSU Bank led by 1.11%, while IT, private bank and oil and gas were trading in red. During early morning trade, Maruti, Larsen and Toubro, Adani Ports, Titan, and Cipla saw marginal gains, while ONGC, Dr. Reddy, Ultratech cement, Shri Ram Finance and IndusInd bank were amongst the laggards. Sumit Pokharna, VP &amp; Fundamental Research, Kotak Securities anticipates Q1FY25 to be a weak quarter for most oil and gas companies, except for GAIL and PLNG. "ONGC’s EBITDA is likely to decline ~6% QoQ on lower net oil realization and also lower oil production. For oil marketing companies, EBITDA could decline ~35-43% on weaker gross refinery margins and also QoQ lower auto-fuel marketing margins. Further, with the full impact of Rs2/liter price cut in March and higher Brent prices, marketing margins on auto fuels were also weaker on a quarterly basis. However, GAIL and PLNG should benefit from higher gas consumption", he continued. As for corporate earnings, Delta and GM breweries are set to declare their Q1FY25 results today. As Aditya Gaggar, Director of Progressive Shares notes, "A zone of 51,900-52,000 will be considered a strong support area while 52,900 will serve as a critical hurdle. The railways and fertilizer counters have regained their momentum in yesterday's trade and some of the counters have already given a strong breakout with a considerable volume indicating an extension of their uptrend". "From the energy sector, we continue to remain bullish on ONGC and Reliance. With gains of over 1.60%, the FMCG sector has given a highest-ever closing which resulted in a fresh all-time high breakout but for confirmation, follow-up buying is a must. Selective buying was witnessed in the metal segment where HindCopper and Nalco have provided a firm breakout. Some stocks from mid and smallcap segments look strong namely, Kopran, Olectra Greentech, Sadhana Nitrochem, Sunteck Realty, and Ultramarine Pigments", he notes. <meta content="cms.next" name="cmsei" />

Stock market today: Sensex trading at 80k points, Maruti, Adani Ports take lead

Both indices Nifty and Sensex closed the day in the red, with Nifty closing 0.01% down at 24,320.55 points, while Sensex dipped 0.05% to close at 79,960.38 points. Amidst broad market indices, India VIX jumped over 7% during the day, while Nifty midcap select shed 1.17% to close the day in red. As for sectoral indices, except for FMCG (up by 1.63%), IT (up by 0.06%), oil and gas (up by 0.88%), and mid small healthcare (up by 0.06%), all other indices closed the day in red. FMCG (down by 1.28%) and PSU banks (down by 1.60%) were amongst the leading sectoral laggards. <h2>Stocks in Action</h2>ONGC (up by 4.15%), ITC (up by 2.34%)m HDFC Life (up by 2.25%), Hindustan Unilever (up by 1.33%) and Wipro (up by 1.33%) were amidst the top gaining stocks. On the other hand, Titan (down by 3.33%), Divis Labs (down by 3.23%), BPCL (down by 2.49%), Shri Ram Finance (down by 1.95%) and Adani Ports (down by 1.56%) lost most ground during the day. Out of the 2,811 stocks traded during the day, 1,116 saw advances, while 1,611 saw declines and 84 remained unchanged. 250 stocks hit their 52-week high price and 16 stocks touched their 52-week low price. 142 stocks hit the upper circuit during today's trading session, while 111 stocks reached the lower circuit. As per Shrikant Chouhan, Head Equity Research, Kotak Securities, "today, the benchmark indices witnessed lackluster activity, the Nifty ended 3 points lower while the Sensex was down by 36 points. Among Sectors, FMCG index outperformed, rallied over 1.5% whereas PSU Bank index lost the most, shedding 1.5%. Technically, after a muted opening entire day the market hovered between 24,240/79,730 to 24,340/80,000 levels. Intraday non-directional activity indicated indecisiveness between the bulls and the bears. We are of the view that, the intraday market texture is non-directional, perhaps traders are waiting for either side breakout". "For the bulls now, 24,360/80,100 would be the key resistance level. Post 24,360/80,100 the index could move up 24,450-24,500/80,400-80,600. On the flip side, dismissal of 24,240/79,730 may accelerate selling pressure. Below which, the market could retest the level of 24,160-24,120/79,500-79,200", he continued. Mr. Aditya Gaggar Director of Progressive Shares highlighted that the markets commenced the week on a muted note and due to a lack of momentum, the index remained rangebound throughout the day to settle the trade at 24,320.55 with a minuscule loss of 3.30 points. Among the sectors, FMCG and Energy were the top performers while PSU Banks and metal were the major laggards. The railway segment was the star performer of the day as almost all the counters surged over 5-6%", he said. <meta content="cms.next" name="cmsei" />

Stock Market closing: Sensex, Nifty close flat, Adani Ports, BPCL, Titan end the day in red

Both indices, Nifty and Sensex, closed in red, with Nifty closing at 24,323.85 points, down by 0.09%, while Sensex closed at 79,996.60 points, down by 0.07%. All broad market indices closed in green, except for India VIX, which closed 1.24% down. As for sectoral indices, financial services were down by 1% and banks were down by 0.83%. On the other hand, FMCG (up by 1.08%), pharma (1.29%), PSU Bank (1.25%), healthcare (up by 1.27%), and oil and gas (up by 1.89%) were among the leading indices. ONGC (up by 4.06%), Reliance (up by 2.63%), Britannia (up by 2.09%), and Cipla (up by 1.98%) were amongst the day's leading stocks. On the other hand, HDFC Bank (down by 4.5%), Titan (down by 1.90%), LTI Mindtree (down by 0.85%), Tata Steel (down by 0.73%), and IndusInd Bank (down by 0.61%) were among the day's laggards. Out of the 2,773 stocks traded today, 1,609 saw advances, 1,083 saw declines, and 81 remained unchanged. 245 stocks hit their 52-week high price, while 13 stocks also hit their 52-week low. 148 stocks hit the upper circuit during the day, while 45 stocks hit the lower circuit. Reliance shares caught momentum today, in anticipation of Reliance Jio bringing forth an IPO soon. The company, valued at Rs 11.11 lakh crore, could very well bring India's biggest IPO worth around Rs 55,000 crore. This is because companies with a valuation beyond Rs 1 lakh crore will have to sell at least a 5% stake in their IPO. A recent hike in tarrifs, and an attempt to increase their ARPU (average revenue per user) indicate that the company might announce the same in their annual general meeting next month. As per Shrikant Chouhan, Head of Equity Research, Kotak Securities, "Indian equity market sentiments remained positive with both the Sensex 30 and the Nifty 50 index reaching a new high this week. On a weekly basis, the BSE 30 and Nifty 50 indices gained more than 1%, while the BSE Midcap and BSE Smallcap indices outperformed the large-caps index. Amid the positive market momentum, most of the sectoral indices reported positive gains this week. BSE IT services performed strongly ahead of the upcoming Q1FY25 earnings season. Oil prices have been gradually inching upwards over the past one month, which needs to be monitored. "Over the next few weeks, the key events for the market include macro factors, the Union Budget, and the Q1FY25 earnings. Individual stocks will be in focus on Q1 FY25 earnings and management commentary over the coming few weeks", he continued. Hrishikesh Yedve, AVP Technical and Derivatives Research at Asit C. Mehta Investment Intermediates Ltd. highlights that the domestic benchmark indices, Sensex and Nifty, ticked lower initially. "However, strong buying in the last half-hour, led by index leaders Reliance Industries and State Bank of India, pushed the Nifty to settle the day on a positive note at 24,324. The broader market outperformed the benchmarks, with the Nifty midcap and smallcap indices gaining more than 0.5% each. Technically, the Nifty managed to defend the 24,200 support level on a closing basis, indicating strength. As long as the index holds this support, it may attempt to test the levels of 24,500–24,600", he notes. Also Read <a href="https://www.businessinsider.in/stock-market/news/raymond-shares-hits-record-high-after-textile-companys-board-announces-demerger-of-real-estate-arm/articleshow/111504815.cms" data-type="tilCustomLink">Raymond shares hits record high after textile company's board announces demerger of real estate arm</a> <meta content="cms.next" name="cmsei" />

Stock market closing: Reliance, ONGC rally, HDFC and Titan amidst laggards

Both indices, Sensex and Nifty ended the day in green, with Sensex closing over the 80,000-mark. While Sensex closed at 80,049.67 points, up by 0.08%, while Nifty ended the day at 24,302.15 points, up by 0.06%. Amidst broad market indices, all of them closed in green, except for India VIX and smallcap 50, which closed in red. Life Insurance Corporation of India today informed NSE that it has acquired a 2.68% stake in IDFC First Bank via private placement, thereby increasing its stake holding in the private bank. LICs stock closed the day at Rs 1,010.34, up by 2.24%. <h2>Top gainers and losers</h2>Tata Motors (up by 2.75%), HCL Tech (up by 2.63%), ICICI Bank (up by 2.53%), Sun Pharma (up by 1.83%) and TCS (up by 1.38%) were amongst the day's gainers, while HDFC bank (down by 2.3%), Bajaj Finance (down by 2.06%), Adani Entertainment (down by 1.47%), Wipro (down by 1.25%) and Tech Mahindra (down by 1.20%) were amongst the day's laggards. As for sectoral indices, financial services (down by 0.18%), FMCG (down by 0.21%), media (down by 0.45%) and metal (down by 0.03%) closed the day in red. On the other hand, pharma (up by 1.39%), healthcare (up by 1.28%) and mid-small healthcare (up by 1.25%) ended the day in green. Out of 2,788 stocks traded today on the exchange, 1,527 saw advances, while 1,175 saw declines. 234 stocks hit their 52-week high, while 8 stocks hit their 52-week low as well. 166 stocks hit the upper circuit during the day's trade, while 41 stocks hit the lower circuit as well. According to Mr. Aditya Gaggar, director of Progressive Shares, "right from the beginning, the index was seen giving up its gains and ended the session at 24,302.15 with a minuscule gain of 15.65 points. The pharma sector regained its momentum and advanced more than 1% to be the top performer followed by IT. On the flip side, media and FMCG were the laggards. The interest of market participants was more toward broader markets as mid and smallcaps moved over 0.45%. From the past couple of days, it seems that the index is finding it difficult to hold higher levels and bearish divergence in RSI indicates weakening of momentum. The immediate support is placed at 24,150 while on the higher side, 24,400 will be considered as resistance". <h2>Expert view</h2>Mr. Ajit Mishra – SVP, Research, Religare Broking Ltd advises that the traders should focus more on stock selection and utilize dip/consolidation to add quality names to their portfolio. "The markets traded within a narrow range and ended nearly unchanged, pausing after wednesday's gains. After an initial rise, the nifty fluctuated throughout the day and settled near its lowest point at 24,306.55. Sector-wise, there was a mixed trend with pharmaceuticals, IT, and automotive sectors seeing moderate gains, while FMCG and metals remained subdued. The broader indices performed better than the benchmark, each gaining about half a percent. The Nifty has approached its immediate target of 24,500 and appears slightly overextended. It would be prudent to take some profits and wait for a potential dip before considering new long positions in the index". Shrikant Chouhan, Head Equity Research, Kotak Securities notes that for traders, 24,400/80,390 would be the immediate breakout level. "Above this, the market could rally up to 24,500-24,525/80,700-80,800. On the flip side, below 24,280/80,000 the sentiment could change. Below the same, the market could retest the level of 24,200-24,165/79,700-795,50", he continued. <meta content="cms.next" name="cmsei" />

Stock market closing: Nifty, Sensex close in green, Tata Motors, HCL take lead

The IPO of Bansal Wire Industries Limited, which manufactures stainless steel wires, opens for subscription today and will remain till July 5th. The company aims to raise Rs 745 crore, all via fresh issue. The share's price band is set between Rs 243 and 256. But should you subscribe to this IPO? How are the financials of Bansal Wire Industries? What are the experts saying? Let's understand <h2>About Bansal Wire Industries </h2> Established in 1985, Bansal Wires operates primarily in three wire segments, namely high carbon steel wire, low-carbon steel wire (mild steel wire), and stainless steel wire. Catering to more than 5,000 customers across various industries, the company produces over 3,000 different types of steel products. The company wants to utilize funds raised from IPO to repay all or certain potions of their loans, finance their work capital needs, and for other general corporate purposes. While the company's profit after tax for FY24 was Rs 78.8 crore, slightly up from Rs 59.93 crore in FY23, it also saw negative cash inflows from operating activities (Rs 536.93 crore) and investing activities (Rs 495.92 crore) in FY24. With 86% of its production sold within India, North India continues to remain Bansal Wire's primary market. Amidst exports, 70% of revenue stems from US and Europe markets. Even though the company maintains a solid presence in 22 Indian states and 6 union territories, it generated about 65.61% of its FY22 revenue, and 67.78% of FY23 revenue exclusively from Delhi, Haryana, Uttar Pradesh and Maharashtra. <h2>What are the risks?</h2>In addition to having experienced negative cash flows in the recent past, the company also faces some serious risks, which include: <ul><li>Heavy reliance on top 10 suppliers for raw materials, given a slight disruption can impact business negatively. </li><li>Hefty working capital requirements, which may need additional financing. </li><li>Even though steel demand is correlated to GDP growth, the cyclical nature of steel segment can adversely impact the company's demand. </li><li>All of company's manufacturing facilities are geographically concentrated in North India. </li><li>The company has unsecured borrowings worth Rs 612.12 million, which can be recalled by creditors. </li><li>The company has seen frequent changes in their statutory auditors over the last 2 fiscals, which makes them vulnerable to compliance risks. </li></ul> <h2>How much can you invest? </h2>50% of the IPO is allocated for Qualified Institutional Buyers (QIBs), while 35% has been set aside for non-institutional investors. 35% of the issue has been earmarked for retail investors. The minimum investment a retail investor can make is in 1 lot, or 58 shares, which are worth Rs 14,848. On the other hand, the maximum allowed investment for retailers is in 13 lots, or 754 shares, which would come to Rs 1,93,024. The allotments will be finalised by 8th July, with listing on NSE and BSE scheduled for 10th July, 2024. <h2>What are the experts saying?</h2>According to Swastika Investmart, "The company offers a favorable mix of high-volume and higher-margin products, contributing to a stable and consistent margin profile. Bansal Wire's financial performance has been positive, demonstrating consistent growth in both revenue and profitability. However, some key risks require careful consideration. The company's operations are susceptible to fluctuations in raw material supply and costs due to the inherent volatility of the steel market. Also, the steel wire industry is highly competitive and fragmented, presenting challenges for market share expansion". "The IPO is priced at a P/E ratio of 41.41x, which appears on the higher end. Considering both the company's strengths and potential risks, we recommend this IPO only for investors with a high-risk tolerance", it continued. Mastertrust broking and investments recommends subscribing to the IPO, only for listing gains, calling the IPO fairly valued as compared to its peers."The company is looking to raise funds to pay off its debt in its own company as well as infuse funds into its subsidiary for the same purpose, and the balance funds will be used to fund the working capital for growth. The company will become virtually debt free post this transaction and they are currently operating at 80% utilization on most of its facilities, indicating they have some room to grow", it notes. <meta content="cms.next" name="cmsei" />

Bansal Wire IPO: Should you subscribe to it? Know all about it here

The IPO of Vraj Iron and Steel, which specialises in manufacturing sponge iron and TMT bars, opens for subscription today. The issue will continue till 28th June, 2024, with successful share allotment intimation by 1st July and the company listing on both BSE and NSE by 3rd July. With the price band set between Rs 195-207, the company is aiming to raise Rs 171 crore, entirely via fresh issue of 0.83 crore equity shares. Out of this, around Rs 164.5 crore will be utilised for expansion of their plant in Bilaspur, while the remaining amount will be allocated for general corporate purposes. But should you subscribe to the IPO? Find out from the experts! <cmsannotation type="cmsannotation" annotationid="What works in favour of Vraj Iron and Steel?" comment="subhead" text="What works in favour of Vraj Iron and Steel?">What works in favour of Vraj Iron and Steel?</cmsannotation> The company’s total income has grown at a CAGR of 33.4% between FY21 and FY23, and its profit after tax (PAT) has risen at a CAGR of 121.7% during the same time. It also offers a diversified product mix, which includes dolochar, pellet, and pig iron. Also, India is the second largest steel producer in the world, with an installed capacity of 161.3 MT in FY23. Experts estimate that steel’s demand in the country is set to rise, with the government's increased emphasis on infrastructure development. By FY26, India’s steel consumption is set to reach between 151-155 MT, and Vraj is well placed to make the most of this boom, given that it is also expanding its current capacities. <cmsannotation type="cmsannotation" annotationid="But should you subscribe to the IPO?" comment="subhead" text="But should you subscribe to the IPO?">But should you subscribe to the IPO?</cmsannotation> However, the issue is not without its fair share of risks, as outlined in its red herring prospectus (RHP). Take a look at some of the internal and external factors that may affect the company’s overall return and production capability : <ol><li>Both of the company’s existing manufacturing plants in Raipur and Bilaspur are geographically concentrated in a single state i.e. Chattisgarh. </li><li>100% of their revenue stems from sales of steel products. A cyclical dip in steel prices will adversely affect their business. </li><li>The company does not have any long term agreements with its customers and relies heavily on its top 10 customers for most of its revenue. A loss or decline in revenue from any of these customers will result in the business being adversely impacted. </li><li>The company’s promoters, namely Gopal Sponge and Power Private Limited, Kirti Ispat Private Limited and Utkal Ispat Private Limited are also engaged in similar business, which could mean conflict of interest and loss of revenue for the firm.</li></ol><cmsannotation type="cmsannotation" annotationid="What are the experts saying?" comment="subhead" text="What are the experts saying?">What are the experts saying?</cmsannotation> According to Mastertrust broking and investments, “the company is in the process of increasing their capacity from 2,31,000 TPA to 5,00,100 TPA for manufacturing and from 5 MW to 20 MW for their captive power plant. The expansions for sponge iron and captive power plant are also expected to be ready by FY25, whereas the expansion for MS billets will be ready by early FY26. We advise subscribing to this IPO for the long term”. Stock analyst Dilip Dawda believes that based on the company’s FY24 annualised earnings, the issue appears to be reasonably priced. Its captive power plant will potentially help them reduce their power costs. According to him, investors can park their funds here from a medium to long term time horizon. <meta content="cms.next" name="cmsei" />

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