Date: Fri 26 Jul, 2024

The 29th Annual General Meeting of S.M.I.L.E. Microfinance Limited (“the Company”) will occur on Friday, August 16, 2024, at 4:30 p.m. IST. The meeting will be held via video conferencing (“VC”) or other audio-visual means (OAVM). The purpose of the meeting is to conduct the following business:

ORDINARY BUSINESS:

• To receive, consider, and adopt the Audited Financial Statements of the Company for the Financial Year Ended 31st March 2024, along with the schedules and notes to accounts annexed to it and together with the reports of directors and auditors thereon.
  
• To re-appoint Mr. J Bradley Swanson (DIN: 02872123), as a director, who retires by rotation and is eligible and offers himself for re-appointment.
  

​SPECIAL BUSINESS:

• ​To fix the remuneration of Mr. V. T. Prabakaran, Chief Financial Officer and Managing Director of the Company.

​They resolve that, as allowed by the Companies Act, 2013, including any amendments, the Members approve the monthly payment of Rs. 2,89,190/- (Rupees Two Lakhs Eighty-Nine Thousand One Hundred and Ninety only) to Mr. V.T. Prabakaran (PAN: AKOPP2826M), Chief Financial Officer and Managing Director of the Company. This is for his successful implementation of the company’s plans.

• ​To consider and approve the Voluntary Winding Up of the Company
  

1. ​The liquidation process will be considered to have started from the date of this resolution.
2. The company will stop its regular business operations from the date of this resolution, except for activities necessary for winding up its business. The company will continue to exist until it is officially dissolved.

• ​To consider and approve the Appointment of Liquidator
  

​The Company members have approved Mr. Anil Khicha's appointment as the Liquidator. His registration number is IBBI/IPA-001/IP-P00422/2017-18/10745. Mr. Anil Khicha has agreed to act as the liquidator for the voluntary liquidation of the Company.

The Liquidator's appointment letter, along with the details of remuneration, has been presented to the Board and approved, with clarification needed regarding the liquidation period ending and budget references.

According to the Code and applicable regulations, the Liquidator is empowered to:

1. ​Ensure compliance with all resolutions related to the voluntary liquidation.
   
2. Initiate or defend legal proceedings on behalf of the Company.
   
3. Conduct necessary business operations for the benefit of the liquidation process.
   
4. Appoint professional/service providers and determine their remuneration.
   
5. Appoint other professionals or continue with the appointment of the existing statutory auditor until the Company's dissolution.
   
6. Fulfill all duties required under the Code, Voluntary Liquidation Regulations, and other applicable provisions.
   
7. Make provisions for pending liabilities and distribute surplus to the Company's shareholders.
   
8. Change the existing bank accounts' name to "S.M.I.L.E. Microfinance Limited- In voluntary liquidation.
   
9. The Liquidator will take necessary actions in the interest of stakeholders, including seeking consultation from the Board of Directors to expedite the Company's dissolution, notwithstanding pending proceedings or litigations against the Company.
   

Date: Fri 26 Jul, 2024

The Union Budget 2024-25, presented by Finance Minister Nirmala Sitharaman, outlines a comprehensive plan to drive economic growth and several significant changes aimed at reshaping the investment landscape. 

• Key adjustments include a hike in the tax rate for short-term capital gains (STCG) on equity investments held for less than a year from 15% to 20%, and an increase in long-term capital gains (LTCG) tax from 10% to 12.5% for shares held over a year. 

• Additionally, the Securities Transaction Tax (STT) on futures and options (F&O) securities was raised by 0.02% and 0.1%, respectively, to curb excessive speculative trading. These tax changes led to a sharp market reaction, with a 400-point drop immediately following the announcement.

• The increase in capital gains tax led to a notable decline in PSU stocks during the trading session following the budget announcement.

• Abolishment of Angel Tax: To boost startups and attract more investors, the government has abolished the angel tax. This move is expected to significantly enhance the fundraising capabilities of startups and encourage more venture capital (VC) investments.

• Standard Deduction Increase: The standard deduction for salaried employees has been increased from Rs 50,000 to Rs 75,000 under the new income tax regime.

• NPS Contribution:The deduction limit for employers' contributions to the National Pension System (NPS) has been raised from 10% to 14%.
  
  
• Tax Savings: Salaried employees under the new tax regime will save up to Rs 17,500 annually in taxes due to these changes.

• New income tax slabs have been proposed; nil for income up to Rs 3 lakh, 5 percent for income between Rs 3-7 lakh, 10 percent for Rs 7-10 lakh, 15 percent for Rs 10-12 lakh, 20 percent for Rs 12-15 lakh, and 30 percent for income above Rs 15 lakh.

In a bid to bolster the startup ecosystem, the budget abolished the angel tax, a significant barrier for early-stage investments. This move is expected to attract more venture capital and private equity funding, fostering innovation and growth among startups.

Moreover, the budget's focus on long-term investment and regulation of market volatility aligns with broader economic goals to ensure sustainable growth. By creating a more favorable environment for startups and implementing strategic tax reforms, the budget aims to balance market stability with promoting entrepreneurial ventures​.

Date: Fri 26 Jul, 2024

The recent global IT outage caused by a CrowdStrike update has had far-reaching impacts, notably hitting Indian startups and companies reliant on Windows endpoints. This incident, which triggered the infamous Blue Screen of Death (BSOD) on Windows devices causing widespread disruptions across various sectors in India and disrupted numerous operations and underscored the critical importance of robust cybersecurity practices. 

The CrowdStrike update, which led to a widespread Blue Screen of Death (BSOD) error on Windows devices, caused significant operational challenges for Indian startups. Key sectors such as fintech, e-commerce, and technology services were particularly affected. Startups faced disruptions in their daily operations, including delays in payment processing, trading platform downtimes, and issues with customer service applications.

Sectoral Impact 

Aviation Sector - Flight Delays and Cancellations

• Numerous airports across India reported significant delays and cancellations. The outage impacted booking and check-in services for airlines such as IndiGo, Akasa Airlines, SpiceJet, Air India, and Vistara.​

• Budget carrier IndiGo had to cancel approximately 200 flights due to the cascading effects of the outage. Long queues were observed at check-in counters, causing inconvenience to passengers.

Financial Services

• The outage affected payment systems, causing delays in transaction processing and impacting customer service.

• Operations at stock exchanges, including the London Stock Exchange, were disrupted. In India, brokerage firms such as Nuvama, Edelweiss, and Motilal Oswal faced technical outages, hindering trading activities.

​E-Commerce and Retail - Order Processing Delays & Warehouse operations​

• Amazon India faced disruptions in its internal service "Anytime Pay," preventing employees from accessing their earnings before the next paycheck. This impacted warehouse operations and logistics.

• Amazon warehouses in the U.S. also grappled with disruptions caused by the global IT outage, highlighting the far-reaching impacts on logistics and inventory management.

Microsoft’s Role and Response

Microsoft, with CrowdStrike, quickly addressed the outage, with CEO Satya Nadella assuring customers of ongoing support. Despite these efforts, some services were still affected, emphasizing the need for strong contingency plans for businesses reliant on third-party software. This incident highlights the importance of preparedness and resilience for Indian companies facing unexpected IT disruptions.

Date: Fri 26 Jul, 2024

The budget for FY25 has been released, and it has received mixed reactions from industry experts. Some of the key announcements include a boost to sectors such as defense, finance and financial services, metals and jewelry, solar power, transmission, steel, home construction, electronic appliances, education, aquaculture and agriculture, leather and textile, healthcare, pharmaceuticals, and IT sectors. As a result, companies catering to these sectors such as HDB Financial, Vivriti Capital, HDFC Securities, Waaree Energy, Vikram Solar, Sterlite Power, ESL Steel, NCL Buildtek, and Proxgy are expected to benefit. The shares of these companies are available at Planify.

Date: Fri 26 Jul, 2024

The AGM will be held on 9th August at 11:00 A.M (IST) through video conferencing/ other audio-visual means to transact:

Ordinary Business:

• To consider and adopt:

1. The audited standalone financial statements of the company for FY24, the reports of BOD, and auditors.
   
2. The audited consolidated financial statements of the company for FY24, the reports of BOD, and auditors.

• To re-appoint Mr. Vineet Bansal (DIN: 05156956), nominee director, retiring by rotation and being eligible, offers himself for re-appointment.

Date: Fri 26 Jul, 2024

Indian Startup Funding: H1 2024 Sees Stability and Emerging Growth Trends. Despite a challenging backdrop of consecutive declines in funding since H1 2022, the first half of 2024 has shown signs of stabilization and an upward trend in the Indian startup ecosystem. India has maintained its robust performance as the fourth-highest funded country globally, with startups raising investments worth $5.3 billion in H1 2024, a slight 1.8% decrease from the $5.4 billion raised in H1 2023.

Top Funding Rounds

Late-stage companies like Zepto, Flipkart, PharmEasy,  and Lenskart secured significant funding.

Lenskart raised $200 million(~₹1,633 Cr) in funding as a pure secondary transaction play. while Zepto, a late-stage startup, secured an impressive $665 million(~₹5,559 Cr) at $3.6 Bn valuation in funding during the first half of 2024. 

Other startups in the top 10 list raised more than $100 million each during H1 2024. Notable names include Rare Rabbit secured ₹150 Cr, and Bira 91 received ₹250 million (₹25 crore) in Series D funding during 2024.

Early-Stage Funding Leaders

Purplle group raised ₹1,000 Cr at a $1.25 Bn valuation, Two Brothers Organic Farms secured ₹58 Cr in funding during 2024.  Libas raised an impressive ₹150 crore in funding in May 2024.

In the finance sector, AbleCredit received ₹12 crore (approximately $1,203,154) in seed funding in June 2024. Another finance and investing startup, Wealthy, secured ₹45 crore (~5.4 Mn) in funding in June 2024. 

Unicorn Emergence

In H1 2024, two startups achieved unicorn status: Perfios and Krutrim.  This contrasts with 2022 and 2021, which saw the emergence of 26 and  44 unicorns, respectively.

Date: Fri 26 Jul, 2024

Notice regarding the EGM sent to the members of OYO (Oravel Stays Ltd.) for FY24-25. The meeting will be held via video conferencing on Thursday, August 8, 2024, at 5:30 PM (IST), to consider and transact the following businesses:

• To approve the appointment of Mr. Sumer Juneja, who was appointed as an Additional Director representing SoftBank Vision Fund by the Board of Directors on July 9, 2024, as a Non-Executive Director representing SoftBank Vision Fund, subject to retirement by rotation.
  
• To alter and increase the authorized share capital of the Company from INR 13,41,13,59,300/- to INR 16,31,13,59,300/- with the inclusion of 290,000,000 Series G Fully and Compulsorily Convertible Cumulative Preference Shares of INR 10/- each, via ordinary resolution.
  
• To create, offer, and issue 35,86,98,276 Series G CCCPS with a face value of INR 10/- each for cash at an issue price of INR 29 per Series G CCCPS, amounting to an aggregate consideration of INR 10,40,22,50,004/- to the following on a private placement basis:

Investor	No. of shares	Price Per Share
InCred Wealth and Investment Services Private Limited	Up to 2,62,84,483	INR 29 per share
J & A Partners	Up to 4,13,79,310	INR 29 per share
Ask Financial Holdings Private Limited	Up to 48,27,586	INR 29 per share
Patient Capital Investments Pte. Ltd. or affiliate entity	Up to 28,62,06,897	INR 29 per share

Key Characteristics of Series G CCCPS:

• The Series G CCCPS will be issued with a minimum preferential dividend rate of 0.01% (zero point zero one percent) per annum.
  
• Conversion: 
  
  • ​Subject to adjustments pursuant to the Shareholders' Agreement, each Series G CCCPS may be converted into Equity Shares on a 1:1 basis at any time at the option of the holder of the Series G CCCPS.
    
  • Subject to compliance with the law, each Series G CCCPS shall automatically convert into Equity Shares, at the conversion price then in effect, upon the earliest of:
    • One day prior to the expiry of 20 years from the date of issue of the Series G CCCPS; or
    • In connection with an IPO, prior to the filing of a prospectus (or equivalent document) by the Company with the competent authority or such later date as may be permitted under the law.
      
• The Series G CCCPS will be converted into Equity Shares at the Series G Conversion Price, as defined herein, at the time of conversion ("Series G Conversion Price").
  
• The initial Series G Conversion Price for the Series G CCCPS will be the Series G CCCPS Subscription Price.

The Company has fixed Thursday, August 1, 2024, as the "cut-off date" for voting at the EGM. The voting rights of the shareholders/beneficial owners will be based on the shares held by them at the close of business hours on the cut-off date. A person who is not a member as of the cut-off date should treat the EGM notice for information purposes only. The remote e-voting period begins on Sunday, August 4, 2024, at 9:00 AM (IST) and ends on Wednesday, August 7, 2024, at 5:00 PM (IST).

Date: Fri 26 Jul, 2024

AV Thomas shares were recommended on July 3, 2024, at ₹20,900 per share, with a target price of ₹23,000 per share. As of today, July 18, 2024, the shares have risen to ₹24,200 per share, exceeding the target and achieving a return of 15.8% in less than a month.

Our next target is ₹32,000 per share. Investors should keep holding the stock for further gains.

Financial Highlights:

Parameters	FY22	FY23	FY24
Revenue (Cr)	992.41	1021.58	1094.6
y-o-y growth		2.9%	7.1%
Net Profit (Cr)	45.1	50.37	69.1
y-o-y growth		11.7%	37.2%

In case you have missed AV Thomas and want to invest in such counters, please feel to connect with us.

Date: Fri 26 Jul, 2024

Hexaware Technologies Limited has announced its intention to explore an initial public offering (IPO) of its equity shares, following a resolution by the board on July 11, 2024. This decision is subject to various approvals, including regulatory and corporate considerations, and market conditions.

The IPO will adhere to the Companies Act, 2013, and SEBI ICDR Regulations, 2018. It will involve the issuance of a draft red herring prospectus (DRHP) to be filed with SEBI, followed by a red herring prospectus (RHP) and a final prospectus. Book running lead managers will oversee the process, assisting with pricing, allocation, and other transaction details.

The offering may include an offer for sale (OFS) by existing shareholders, subject to eligibility criteria specified in SEBI regulations. Shareholders intending to participate must confirm their interest by July 29, 2024, ensuring compliance with holding period requirements and other stipulations.

All offered shares must be in dematerialized form and deposited in an escrow account. Pre-IPO shares will be subject to a mandatory lock-in period of six months from the date of allotment, with exceptions outlined in SEBI regulations.

The Company retains discretion to adjust terms and conditions or withdraw the IPO entirely. Shareholders are strongly advised to seek independent legal and tax advice before participating, as participation does not guarantee sale of shares.

Date: Fri 26 Jul, 2024

Sterlite Power, a leading private sector power transmission infrastructure developer and a Vedanta Group Company, has taken a significant strategic step towards enhancing its value proposition and operational efficiency. The company has successfully executed a strategic demerger of its EPC (Engineering, Procurement, and Construction) segment, resulting in the establishment of SGL5 as a separate entity. This move is set to unlock substantial value for Sterlite Power’s core product and service segments.

Demerger of EPC Segment for Value Creation

The demerger of the EPC segment into SGL5 comes with a notable $1 billion investment platform for the power transmission sector in India. This strategic joint venture involves Singapore's sovereign wealth fund GIC investing $500 million (https://economictimes.indiatimes.com/industry/energy/power/sterlite-gic-to-set-up-1-billion-jv-for-power-transmission/articleshow/108800025.cms?from=mdr) for a 49% stake, while Sterlite Power will deploy a similar amount for a 51% stake. This strategic decision aligns with Sterlite Power's vision of enhancing its business focus and operational capabilities while providing a robust platform for future growth and development.

Strategic Benefits of the Demerger

1. Wealth Creation: The demerger is expected to drive significant wealth creation for the company. By segregating the EPC segment into a distinct entity, Sterlite Power can better manage and optimize its resources, leading to enhanced financial performance and operational efficiency.

2. EPS Growth: The demerger is anticipated to contribute positively to the company's Earnings Per Share (EPS). By focusing on its core strengths and leveraging the specialized capabilities of SGL5, Sterlite Power can achieve higher profitability and return on investment, benefiting its shareholders.

3. Enhanced Investment Appeal: With the establishment of SGL5 and the substantial investment from GIC, Sterlite Power is poised to attract more investors and strategic partners. This enhances the company’s investment appeal and positions it for future growth opportunities in the competitive power transmission infrastructure market.

Remote E-Voting for Resolution Approval

In conjunction with this strategic initiative, Sterlite Power has announced that it will be conducting a postal ballot through remote e-voting to seek shareholder approval for the resolution related to the demerger and the associated transactions. The remote e-voting process ensures that all shareholders have the opportunity to participate in this important decision, promoting transparency and inclusivity in the company’s governance.

The Board of Directors has appointed Ms. Mehak Gupta, Proprietor of M/s Mehak Gupta & Associates, Practicing Company Secretaries, as the Scrutinizer for conducting the postal ballot in a fair and transparent manner. Shareholders are encouraged to read the detailed instructions provided in the Postal Ballot Notice and cast their votes electronically before the deadline to ensure their participation in this crucial decision-making process.

Sterlite Power’s Robust Portfolio and Market Leadership

Sterlite Power is a prominent player in the power transmission infrastructure sector, with a robust portfolio that includes 33 completed, sold, and under-construction projects covering approximately 15,350 circuit kilometers of transmission lines across India and Brazil. In India alone, the company manages projects worth over USD 2 billion. Since 2011, Sterlite Power has secured a third (by tariff) of all inter-state private transmission projects awarded in India under competitive bidding, underscoring its market leadership and competitive edge.

Conclusion

The strategic demerger of the EPC segment and the establishment of SGL5 as a separate entity with a substantial $1 billion investment platform involving GIC is a transformative move for Sterlite Power. This initiative not only unlocks value for the company's core product and service segments but also positions Sterlite Power for sustained growth and enhanced shareholder value. As a leading private sector power transmission infrastructure developer and solutions provider, Sterlite Power continues to set benchmarks in the industry with its innovative strategies and robust project portfolio.

Sterlite Power (a Vedanta Group Company) remains committed to driving excellence in the power transmission infrastructure sector, leveraging its expertise and strategic initiatives to create value for its stakeholders and contribute to the development of a sustainable and efficient power transmission network.

Date: Fri 26 Jul, 2024

HDB Financials released its financials for Q1 FY25. The company recorded a revenue growth of 14.7% in Q1 FY25 from Rs 3,387 in Q1 FY24 to Rs 3,884 Cr. The profit of the company grew by 3.1% from Rs 761 Cr in Q1 FY24 to Rs 784 Cr in Q1 FY25. The capital adequacy ratio of the company declined by 4.6% from 19.7% in Q1 FY24 to 18.8% in Q1 FY25 and the liquidity coverage ratio of the company increased by 7.1% from 224% to 240%.

An interesting point is to note that the interest income of the company increased by 26.8% from Rs 2,573 Cr in Q1 FY24 to Rs 3,264 Cr in Q1 FY25 whereas income from the sale of services declined by 45.7% from Rs 577 Cr in Q1 FY24 to Rs 313 Cr in Q1 FY25 and the finance cost increased by 39.5% from Rs 1,072 Cr in Q1 FY24 to 1,496 Cr in Q1 FY25.

Date: Fri 26 Jul, 2024

Ordinary Business

• ​Adoption of Audited Standalone Financial Statements: Review, discuss, and approve the Company's Audited Financial Statements, along with the Auditors' and Board of Directors' Reports for the year ending on March 31, 2024.
• Re-appointment of Mr. Piyush Goenka (DIN: 02117859), liable to retire by rotation.
  
• Re-appointment of Mr. Wilhelmus Marthinus Maria Van Der Beek (DIN: 02142559), liable to retire by rotation.
  
• Appointment of the Statutory Auditors of the Company: Appoint M/s. B S R & Co. LLP, Chartered Accountants (Firm Registration No. 101248W/W-100022) as the Company's Statutory Auditors from the conclusion of the 33rd Annual General Meeting until the conclusion of the 36th Annual General Meeting. Also, set their remuneration.

Special Business

• Increase in borrowing power of the Company: ​At a meeting on August 7, 2023, it was decided that the company can borrow money, even if the total borrowed, along with existing loans, is more than the company's paid-up capital and free reserves (excluding temporary loans from the company's bankers). However, the total borrowed amount should not exceed INR 12,000 Crores (Indian Rupees Twelve Thousand Crores only). This decision replaces any previous decisions on the matter.
  
• Creation of charge and to provide security: Seeking consent from the Members to pledge, mortgage, or create a charge on all the Company's immovable and movable properties. This is to secure the amount borrowed by the Company or any third party from time to time. The maximum indebtedness secured by the Company's properties should not exceed INR 12,000 Crores (Indian Rupees Twelve Thousand Crores). This request supersedes the earlier Resolution and is by the Companies Act, 2013.
  
• Reclassification of Authorised Share Capital & consequent amendment to the capital clause in the Memorandum of Association of the Company: Resolved that, by Companies Act, 2013 and the Company's Articles of Association, consent of the Members of the Company is hereby accorded to reclassify the existing Authorized Share Capital of the Company. The reclassification will change the existing Authorized Share Capital of INR 2,75,00,00,000 to consist of 27,50,00,000 Equity shares of INR 10 each.
  
• To issue Non-Convertible Debentures: Shareholders have approved offering Non-Convertible Debentures, including bonds, through private placement, in one or more transactions within a year from today. The total borrowing should not exceed INR 8,000 Crores.
• Issue of shares concerning Arohan Employee Stock Option Plan 2021: Request the approval of the Members to issue 1,500,000 fully paid-up equity shares with a face value of INR 10 each under the 'Arohan Employee Stock Option Plan 2021' ("ESOP Plan 2021"), as per the provisions of the Companies Act, 2013, and Rule 12 of the Companies (Share Capital and Debentures) Rules, 2014, along with the Company's Articles of Association.
  
• Payment of Commission to Mr. Vineet Chandra Rai (DIN: 00606290), Non-Executive Nominee Director for the Financial Year 2024-25.

• ​Component​	​Amount (in INR)​
  Monthly Commission	12.5 Lakhs

  
  

• Payment of Commission to Mr. Anurag Agrawal (DIN: 02385780), Non-Executive Nominee Director for the Financial Year 2024-25.

Component	Amount (in INR)
Monthly Commission	4 Lakhs

Date: Fri 26 Jul, 2024

HDFC Securities announced its Q1 FY25 results. The company recorded a total revenue growth (year-on-year) of 64.6% in Q1 FY25 from Rs 497 Cr in Q1FY24 to Rs 818 Cr in Q1 FY25. The company's net profit increased by 54.6% (year-on-year) from Rs 189 Cr in Q1 FY24 to Rs 293 Cr in Q1 FY25. The total equity of the company increased by 51.8% from Rs 2,029 Cr till Q4 FY24 to Rs 3,080 Cr in Q1 FY25 and the total assets rose by 20.3% from Rs 14,103 Cr till Q4 FY24 to Rs 16,970 Cr in Q1 FY25.

Date: Fri 26 Jul, 2024

The company has achieved impressive quarterly results, with a 37.6% year-over-year increase in revenue and a 38.0% year-over-year increase in net profit. These figures demonstrate a strong growth in both revenue and profit compared to the previous year, showcasing the company's solid market position and efficient operations.

The company in June FY25 did a buyback of shares at Rs. 4450 per share and the stock currently trading at Rs 4141 thus investors can hold the stock to realize further gains.

Purchased at 267 Rs/Share in the PreIPO market, the share is at 4141/share levels. Investment of Rs 10 lakhs in Anand Rathi wealth is now worth Rs 1.55 Cr.

If you missed the investment in Anand Rathi, Please feel free to connect with us for the next investment.

Date: Fri 26 Jul, 2024

Reference: https://www.business-standard.com/industry/news/state-run-refiners-in-talks-for-long-term- oil-import-deal-with-russia-124071100479_1.html
                    https://www.icra.in/Rating/GetRationalReportFilePdf?Id=127730

The long-term oil import deal that India's state-run refiners are negotiating with Russia presents significant benefits for Nayara Energy, making it a stellar investment opportunity. As a private refiner already engaged in term deals for Russian oil imports and part-owned by Russian oil major Rosneft, Nayara Energy stands to gain from several advantages:

1. Stable Supply: The deal ensures a predictable and stable supply of oil, which is crucial for Nayara Energy's operations. This stability is vital for maintaining consistent refinery output and meeting rising fuel demand in India.

2. Cost Efficiency: By securing oil imports at potentially discounted rates, Nayara Energy can reduce its raw material costs. This cost efficiency can enhance its competitiveness and profitability in the market.

3. Strategic Alignment: With India's expanding refining capacity and growing fuel demand, the deal aligns with Nayara Energy's strategic goals of scaling up its operations and increasing market share.

4. Enhanced Relationships: Being part of joint negotiations with state-run refiners and benefiting from long-term agreements strengthens Nayara Energy's relationship with both the Indian government and Russian suppliers, potentially opening up further business opportunities.

5. Market Positioning: As the largest buyer of discounted Russian seaborne oil, India, and by extension, Nayara Energy, is well-positioned to leverage this deal to secure favorable terms and reinforce its market position as a leading refiner in the region.

Nayara Energy (backed by Rosneft) has demonstrated remarkable financial growth, with a 923% increase in bottom-line growth in FY23. The company has transitioned from a low-margin business (<5% net profit margin) to a high-margin one (8%+ net profit margin) due to strategic macro shifts across the world, stemming from the Russo-Ukraine crisis. As the second-largest refinery in India, Nayara Energy has significant potential. The company has already achieved over ₹99,200 crore in sales in the first nine months of FY24, with annualized estimates for FY24 projecting top and bottom lines of approximately ₹1,32,000 crore and ₹12,400+ crore, respectively, indicating a stellar net profit margin of 9.4%. These figures translate to top and bottom-line growth of 13% and 32%, respectively, showcasing the dominance of economies of scale.

Currently, Nayara Energy's shares are trading at a forward P/E of 7.7, compared to its domestic peer Reliance Industries, which is trading at a current P/E of 31. The growth opportunities for Nayara Energy are immense, given its strong legacy, expertise, and expansion into the polymer business with the commencement of a 450 KTPA PP unit.

In summary, Nayara Energy's strategic oil deal with Russia, impressive financial performance, and expansion plans position it as a highly attractive investment opportunity. The company's ability to secure stable, cost-efficient oil supplies, coupled with its strong market positioning and significant growth potential, makes it a compelling choice for investors.

	FY22	FY23	9MFY24	Annualized FY24 E
Revenue ₹ Cr	93,888.80	1,17,386.80	99,237.60	1,32,316.80
PAT ₹ Cr	921	9,426.20	9,325.50	12434
NPM	1.0%	8.0%	9.4%	9.4%