Rupee hits 10-week high, falls below 86/$
Indian stock market continued its positive trend for the fifth consecutive session on March 21, with the Sensex rising 557 points to 76,905.51.
Over five sessions, the Sensex has surged 3,077 points, and the Nifty has jumped over 4% despite global uncertainties.
Valuation comfort has led to bottom fishing, with the Sensex correcting over 15% since its peak in September 2024, making large-cap stocks more attractive.
India’s economic growth indicators have improved, with retail inflation easing to 3.61% in Feb & industrial output growth rising to 5% in January.
Expectations of earnings revival for India Inc. are high, with projected earnings growth of 12-14% for the next 12 months, which could trigger further market gains.
Indian rupee ends 85.9/$ on Friday vs Thursday’s close of 86.36/$
Govt to fix Uniform 5% GST rate For Commercial Drones
GST Council is considering a uniform 5% GST rate for all commercial-use drones to remove classification confusion.
Currently, drones for commercial use are taxed at 5%, those with cameras at 18%, and personal-use drones at 28%,
The move aims to streamline taxation and boost drone adoption across industries like agriculture, healthcare, and logistics.
The Indian drone market is projected to reach $13 billion by 2030, growing at a CAGR of 21%.
Following the news, shares of listed drone companies, idea Forge and Drone Acharya, surged by nearly 5% intraday.
Xiaomi India to settle with Govt in Tax invasion case
₹4,704.21 crore of Xiaomi Technology India remains inaccessible due to Indian authorities freezing several of its bank accounts,
The company is open to settlement discussions amid ongoing investigations into tax and customs compliance issues.
The financial restrictions have been in place since December 2024, affecting Xiaomi’s operations and cash flow.
India’s Enforcement Directorate (ED) and other regulatory bodies have scrutinized Xiaomi for compliance violations, leading to legal challenges from the company.
Xiaomi maintained a 12% market share in India in 2024, ranking as the fourth-largest smartphone brand.
Rival brands like Vivo have surpassed Xiaomi in market share.
Godrej acquires Creamline Dairy for Rs 930 crore
Godrej Agrovet Ltd to acquire the remaining 48.06% stake in Cream line Dairy Products Limited (CDPL) for ₹930 crore, making it a wholly owned subsidiary.
Share Purchase Agreement executed to acquire 47.38% equity stake from CDPL’s promoter group.
Before the deal, Godrej Agrovet held 51.94% stake (58,81,508 shares); post-acquisition, it will own 100% (1,13,24,700 shares).
CDPL operates under the Godrej Jersey brand, a major private dairy player in South India.
CDPL’s turnover in FY24: ₹1,540 crore.
Strengthens Godrej Agrovet’s dairy presence, focusing on value-added dairy products and leveraging CDPL’s distribution network.
Aakash to invest Rs 500 cr in ‘Aakash Digital’
Aakash Educational Services has launched “Aakash Digital,” an online learning Platform.
₹250-500 crore allocated, mainly for tech and Al development.
Starting with 150 teachers, expanding to 500 as the platform scales. Digital currently accounts for less than 10% of AESL’s revenue, expected to reach 25-30% in 2-3 years.
Designed for students in small and remote towns, with compatibility for 2G data.
Aakash Digital 2.0 beta launched a year ago, showing higher attendance than physical classes.
Online courses will be 10-20% cheaper than offline ones after applying scholarships.
Hero MotoCorp buy 32.5% stake in EV startup Euler Motors
Hero MotoCorp is investing up to 525 crore (~$60 million) in Euler Motors. The investment marks Hero MotoCorp’s entry into the electric three-wheeler market.
This is Hero MotoCorp’s second EV investment after acquiring 40% stake in Ather Energy.
The investment will be executed in multiple tranches, giving Hero MotoCorp a 32.5% stake in Euler Motors on a fully diluted basis.
Euler Motors, founded in 2018 focuses on electric cargo vehicles. The company’s flagship model, the HiLoad EV, offers a 170 km range and is claimed to be the most powerful electric cargo three-wheeler.
The company operates in over 30 cities in India and reported a turnover of ₹172 crore in FY24, up from ₹49 crore in FY23.
It is impossible to make too much money in Q-com: Big Basket Founder
Hari Menon initially tested BBNow in 2023 before fully transitioning Big Basket into a quick commerce (QComm), now deriving 50% of business from non-grocery items.
Despite the shift, Menon is skeptical about QComm’s profitability potential.
Expanding store sizes from 2,000-2,500 sq ft to 4,000-5,000 sq ft and integrating more Tata brands for differentiation.
Believes speed is no longer a differentiator as all players offer 10-min deliveries, with further reduction nearly impossible. Adopting cautious expansion strategy with 800 stores instead of 1,500 to achieve profitability faster.
Highlights the need for rational business practices and criticizes aggressive market share tactics by some players.
Emphasizes funding challenges, stating that rapid expansion without sustainable unit economics can lead to financial strain.
Warns against overvaluation, noting that excessive valuation can make a company less attractive for investment.
Believes in adapting to changing customer behavior, stating FOMO-driven participation in QComm was inevitable.
Initially skeptical about QComm but later recognized its challenges in profitability and unit economics.
Notes a drop in average order value (AOV) from ₹1,400-1,500 in traditional Big Basket to ₹500-₹600 in QComm, with a blended AOV now at ₹850.
Coca-Cola & Pepsi launch 10 rs. sugar drink in India
Coca-Cola and PepsiCo have introduced no-sugar and light variants priced at ₹10.
New offerings include Thums Up X Force, Coke Zero, Sprite Zero, and Pepsi No-Sugar.
This move is in response to the entry of Reliance Consumer’s Campa brand, aiming to capture a larger market share.
The 10 price point is intended to attract consumers without reducing prices on flagship brands.
There is a growing trend towards low-sugar and no-sugar beverages, with sales reportedly doubling last year to around ₹700-750 crore.
In 2024, low-sugar drinks contributed to 44.4% of PepsiCo’s sales volume, highlighting a shift in consumers towards healthier options.
Decathlon India post Rs 197 cr profit in FY24
Decathlon India reported a profit of ₹197 crore in FY24, a sharp recovery from a ₹18 crore loss in FY23.
The company operates 90 stores in India, following a direct-to-consumer model through retail stores and e-commerce.
The sale of sports products was the sole revenue source, with an additional ₹58 crore earned from interest and other non-operating income, bringing the total to ₹4,066 crore.
Cost of procurement, the largest expense, dropped by 4.3% to ₹2,448 crore in FY24.
Cost-cutting across power, rent, advertising, IT, freight, and legal expenses led to a 4.5% reduction in total expenditure to ₹3,797 crore in FY24.
The company spent ₹0.95 to earn every 1, with an improved ROCE of 17.79% and EBITDA of 14.49%.
Total current assets stood at ₹1,247 crore, including 325 crore in cash and bank balances.
CEO Sankar Chatterjee aims to double revenue to ₹8,000 crore within 3 to 5 years.
Decathlon has maintained dominance in the sports retail category but faces challenges in sustaining high growth due to market limitations.
The firm may need to explore new segments or strategies to continue expanding in India.