Advanced Enzymes & Rain Industries Rally in Trade While Lupin & ABB India Remain Under Pressure

本站添加: 2026-05-17

[00:00:00]About equity markets again, our movers and shakers segment now and we are tracking a whole host of stocks that are buzzing around. First up, it's Lupin.

[00:00:08]That's the one in focus today as well.

[00:00:11]What is the reason behind this fall today? Well, yes, you know, Lupin is in focus because it held its conference call and after that the street seems to be a little concerned with regards to FY27 and how that would shape out. So, guidance post the conference call indicates that FY27 revenue growth is expected to be in terms of high single-digit growth. US revenue in FY27 is likely to post high single-digit or low double-digit erosion. It remains, however, on track to deliver that $1 or marginally higher revenue. Now, remember that FY26 was an excellent year for Lupin. So, FY27, we're going to see a bit of a shave-off and that's what the street is concerned about. Similar case for the margins which came in at 32% for FY26. FY27, they've said that they're guiding for 25%. Margins have factored in competition for Mirabegron, one of their key drugs, as well as Tolvaptan.

[00:01:07]R&D expenditure to increase, impact from the West Asia war as well. Brokerages are also concerned with regards to what Lupin has reported. So, for example, Nomura has downgraded Lupin to hold from buy after the recent rally with limited upside left according to them. They have a target price of 2,600 odd rupees and earlier it was around 2,550 odd rupees. Okay, 5% lower on Lupin.

[00:01:32]That's the word coming in from the management and brokerage commentary as well.

[00:01:36]ABB India, that is the other loser in trade. They reported numbers.

[00:01:40]What did you make of that? A 9% cut now.

[00:01:43]Yeah, so the number is quite weak, right? A miss on terms of the expectations from the street as well as the CNBC-TV18 poll. When you look at it, revenue just saw a growth of around 5%.

[00:01:52]Automation segment execution seemed to be a concern over there and there was a bit of a slower execution. So, that impacted the segment, and weak performance came in over there. Order inflow, that's at 25%. Where did the orders actually come in from? What was doing well in terms of segments over there? Data centers, railways, renewables, utilities, infrastructure that did well. Do not forget the company has also now completed the sale of the robotics business, right? There was a separate division that was the robotics automation. Now, that has gone off because that's according to the ABB parent that was the plan. So, that has moved out, and they sold that part of the business. Key highlights that came in on the con call. The company said that the revenue and profitability of the company was impacted this time this quarter was mainly because of the West Asia conflict. Margins impacted because of what? Raw material inflation, rupee depreciation, revenue mix, as well as pricing pressure that came in. And uh they've given a guidance for PAT margin a bit of a PAT margin guidance, I beg your pardon, and that is maintained at around 12 to 15% range. The company has taken some price hikes. They still think that in some other segments also they may be looking at taking more price hikes going forward. And data centers, that's been the exciting part. Now, that accounts to around 12% of their book. But large orders, large projects, there seems like there's some delay in decision-making coming in from the clients as well. So, that is something that they'll watch out for in two segments, automation as well as the industrial CAPEX. Uh competition, that's intense in some of the areas and some geographies coming in on the global front from Japan, Korea, as well as China. And because of this weak number right now, we've seen brokerages downgrade the stock as well. Prabhudas Lilladher has downgraded the stock to a hold. We have Nomura that's downgraded the stock to a reduce rating. And Motilal Oswal also has downgraded the stock to a neutral rating. So, a lot of downgrades that have come in, and 9% decline in the stock. Okay. All right.

[00:03:33]Uh Vinnie, thanks very much for that. Uh but let's go across to Nigel. Rain Industries is doing very well today. Uh Nigel, tell us more. Well, Rain Industries is doing well, and remember we have mentioned in the past that it's a bit of a play with regard to aluminum.

[00:03:47]It can be called a so-called aluminum ancillary. The reason I say this is because they make CP CPC as well as CTP, which is cold tar pitch, and both of them are used in the aluminum segment.

[00:03:57]Now, the numbers look very, very good.

[00:03:59]On the top line, there's a growth of close to around 20%. How did that happen? They have three big segments.

[00:04:03]One is the carbon segment, which is CPC as well as CTP, that's cold tar pitch.

[00:04:08]Uh you know, out there you had a growth of more than 20%, and we have some indications with regard to pricing.

[00:04:14]Well, then Nalco as well told us that the prices had moved from around 45,000 per ton to around 52,000 per ton. My calculator numbers are around 53,000 rupees per ton. So, that segment got a big booster shot because of higher pricing and higher volumes. Then this other smaller part of the business is the advanced material business, which also did well. Growth of close to around 19% of them, and margins expanded out there. The sole point of the business which wasn't very, very good is the cement business. That continues to struggle, but that's more an industry-wide problem. You put everything together, the margins have moved to around 15%. That's not a number I've seen in many, many quarters. So, there's a sharp improvement in the operational profit. Uh the absolute number close to around 700 crores. They were doing close to around 350 crores earlier, and margins moved to around 15%. They reported a net profit that compares with a net loss, but the big trigger from here on is the operational performance could be good because I understand CPC prices as well as CTP prices are doing well, and both of them go into aluminum. Offtake is something that we'll be tracking. The smaller part of the business, which is the advanced materials business, needs to improve from here on, but the crucial trigger will be refinancing of their debt.

[00:05:17]That's up for you in the screen.

[00:05:18]Refinancing or repayment is important.

[00:05:21]Otherwise, the stock trades at around five times uh odd EV per EBITDA, which is not very expensive, and the operational performance could improve, but reduction in interest cost is something the street will track very closely. Stock up and about. Oh, yes, 16% higher on this one. The other uh stock on the higher side is Advanced Enzyme. Uh Ekta, tell us more. Well, yes, reacting to its Q4 numbers, the revenue is up around 22 odd percent uh this time. The margins have expanded to 31%, and the profit is up 69%. The human nutrition business was up 24% for the quarter. Animal nutrition was up 19% on a year-on-year basis. Their bioprocessing, which is small, was up 17% and their specialized manufacturing was up 17%. So, all of these segments, in fact, grew in double digits. Domestic sales, which is you know, 52% of the business was up 51% on a year-on-year basis. International sales also was a bit flattish however this quarter but grew. And interestingly, the company has launched its own nutraceutical brand Welfar, which they are saying is going to be a growth driver and they continue to explore in organic growth as well. So, as you can see, Advanced Enzymes up around 12 odd percent. We take a short break but get you a lot more on the markets and stock specific action on the other side.