Month: June 2025

Motilal Oswal has maintained its “Neutral” rating on Torrent Pharmaceuticals, setting a price target of ₹3,430, which implies modest upside of around 3% from current levels. The brokerage’s stance reflects both the strategic potential and execution risks linked to Torrent’s ambitious plan to acquire JB Chemicals & Pharmaceuticals (JBCP).

Here’s a closer look at what’s driving this cautious optimism:

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Portfolio Expansion Brings Growth—and Challenges

The acquisition would give Torrent access to JBCP’s fast-growing domestic formulation business, which includes a strong chronic care portfolio.

Torrent plans to purchase up to 46.4% stake in JBCP for ₹11,900 crore (₹1,600 per share) and will also launch a mandatory open offer for an additional 26% stake.

Post-merger, JBCP’s ₹2,300 crore domestic sales and 2,800+ field force will integrate into Torrent’s existing ₹6,400 crore India business, creating potential synergies across therapies.

However, Motilal Oswal cautioned that successful integration and a clear strategy for cross-selling will be critical to unlock value from the combined entity.

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Valuation: Strategic Sense, But No Bargain

Motilal Oswal noted that while the deal is consistent with Torrent’s expansion goals, the valuation is not exactly cheap.

Torrent is paying:

• 30.7× FY26E earnings (27× FY27E)
• 22× FY26E EBITDA

These multiples are lower than Torrent’s own 47× FY26 earnings, but still significantly above sector averages.

In the brokerage’s words:

“Valuation supports strategic rationale, but does not leave much room for re-rating.”

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Funding Mix Could Pressure Near-Term Earnings

Torrent already carries about ₹2,250 crore of net debt. If the acquisition is funded entirely through borrowing, Motilal Oswal estimates an earnings dilution of around 10.5% in FY27 due to higher interest costs.

Outside of the JBCP deal, Torrent is expected to deliver a healthy growth trajectory with:

• 12% revenue CAGR
• 14% EBITDA CAGR
• 23% PAT CAGR over FY25–FY27

Motilal Oswal continues to value Torrent at 38× 12-month forward earnings, supporting the ₹3,430 target price.

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Bottom Line

While the acquisition could strengthen Torrent’s presence in chronic therapies and expand its domestic portfolio meaningfully, the brokerage believes the limited upside from current levels warrants a Neutral stance.

For investors, the big question will be how effectively Torrent manages integration and balances funding to avoid a drag on profitability.

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Shares of Rail Vikas Nigam Ltd (RVNL) rose nearly 2% on June 30 after the company announced it had emerged as the lowest bidder (L1) for a major ₹213.22 crore contract awarded by South Central Railway.

According to an exchange filing, the project involves designing, supplying, installing, testing, and commissioning an overhead equipment (OHE) system upgrade—transitioning from the current 1x25kV setup to a 2x25kV AT feeding system with feeder and earthing works. The upgrade will cover the Duvvada–Rajamundry and Samalkot–Kakinada Port sections of the Vijayawada division. RVNL expects to complete the contract within 24 months.

Revenue Outlook Remains Positive

Despite a softer performance in FY25, the state-run infrastructure giant has reiterated its revenue guidance of ₹20,000–₹22,000 crore for the current fiscal year.

MP Singh, Director of Operations at RVNL, expressed confidence in meeting FY26 targets. “We are expecting to achieve the FY26 revenue guidance because some of the large projects we secured through bidding are now under execution,” Singh said.

The company had set the same revenue guidance for FY25 but fell short due to a sluggish first half. However, momentum picked up sharply as new contracts began moving into the execution phase.

Competitive Bidding Driving Growth

Competitive bidding has emerged as a key growth engine for RVNL. According to Singh, revenue from such projects grew around 68% in FY25, underscoring the importance of large-scale infrastructure initiatives.

Several marquee projects, including BharatNet, metro infrastructure, and RDSS, are currently in mid-implementation—a phase that typically generates higher revenue inflows.

Stock Performance

As of 12:40 pm on June 30, RVNL shares were trading 0.65% higher at ₹397.60 on the NSE, reflecting investor optimism around the company’s strong project pipeline and execution capabilities.

Stay tuned for more updates on RVNL’s infrastructure projects and their impact on the company’s financial performance.

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Multi-brand food services company Curefoods India has officially filed its draft papers with the Securities and Exchange Board of India (SEBI), gearing up to raise capital through an initial public offering (IPO).

According to the draft red herring prospectus (DRHP), the IPO will feature a fresh issue of shares worth ₹800 crore, along with an offer-for-sale (OFS) of 4.85 crore equity shares by existing investors.

Prominent shareholders participating in the OFS include Curefit Healthcare, Iron Pillar PCC, Crimson Winter, Accel India V, Chiratae Ventures India Fund IV, Global eCommerce Consolidation Fund, and Alteria Capital Fund.

Headquartered in Bengaluru, Curefoods India operates popular brands such as CakeZone and Nomad Pizza. The company is also planning to raise up to ₹160 crore in a pre-IPO round to bolster its finances ahead of the listing.

How Curefoods Plans to Use IPO Funds

A significant portion of the IPO proceeds has been earmarked to drive expansion and reduce liabilities:

• ₹152.54 crore will be invested in growth and equipment:
  • ₹126.32 crore to set up new Krispy Kreme cloud kitchens, restaurants, kiosks, and central kitchens
  • ₹19.91 crore to expand select existing cloud kitchens with additional brands
  • ₹6.31 crore to purchase machinery and equipment
• ₹126.93 crore will be used to repay debt
• ₹40 crore will cover lease obligations in India
• ₹14 crore will go toward sales and marketing initiatives

The company also plans to strengthen its subsidiary businesses:

• ₹91.96 crore investment in Fan Hospitality Services
• ₹11.35 crore for Cakezone Foodtechs
• ₹81.15 crore to increase stakes in Millet Express Foods, Munchbox Frozen Foods, and Yum Plum

Additional funds are earmarked for future acquisitions, strategic initiatives, and general corporate purposes.

About Curefoods India

Curefoods is a tech-enabled, multi-brand food services platform offering a wide range of cuisines through cloud kitchens, dine-in restaurants, and kiosks. The company leverages technology to optimize operations and reach consumers across formats and geographies.

IPO Advisors

JM Financial, IIFL Capital Services, and Nuvama Wealth Management are the book-running lead managers for this public issue.

Stay tuned as Curefoods India moves closer to its market debut, aiming to accelerate its growth story in India’s fast-evolving food services sector.

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IndusInd Bank, reeling from one of the largest accounting scandals in India’s banking sector, has zeroed in on three seasoned executives to fill its top leadership positions. The shortlist includes Rajiv Anand of Axis Bank, Anup Saha of Bajaj Finance, and Rahul Shukla of HDFC Bank.

The bank has been without a permanent CEO since late April, when Sumant Kathpalia and deputy Arun Khurana resigned, citing moral responsibility for massive undisclosed losses in its forex derivatives trading book. Both former executives have also been barred by SEBI for insider trading, after allegedly profiting over ₹157 crore from selling the bank’s shares before the crisis came to light.

The Candidates

• Rajiv Anand, currently deputy managing director at Axis Bank, has over 35 years of experience across retail and wholesale banking. He is due to retire in August.
• Anup Saha, recently appointed MD of Bajaj Finance, brings more than three decades of experience and played a major role in scaling Bajaj Finance’s retail business.
• Rahul Shukla, on sabbatical from HDFC Bank, has headed corporate and business banking and previously held senior positions at Citibank across South Asia.

According to people familiar with the process, IndusInd’s board is expected to finalize and submit the list of candidates to the Reserve Bank of India (RBI) any day now, ahead of the regulatory deadline of June 30. The RBI has directed that candidates must be external to the bank to ensure fresh oversight.

What Triggered the Crisis

IndusInd’s troubles began in early March, when it disclosed that years of accounting errors in its forex derivatives book had been discovered. Initially estimating the impact at ₹1,600 crore, the bank later revealed total losses of ₹2,329 crore—erasing nearly all profits for the March quarter. Net interest income also slumped 43% year-on-year to ₹3,048 crore.

The crisis didn’t stop there. An internal audit subsequently found:

• ₹674 crore wrongly booked as interest income from the microfinance business
• ₹595 crore of unsubstantiated balances under “other assets” on the balance sheet

These revelations raised serious concerns about corporate governance and internal controls. The bank’s shares have been under pressure ever since, trading about 42% below their 52-week high as of June.

Interim Management

Since the resignations of Kathpalia and Khurana in late April, IndusInd Bank has been managed by an RBI-approved executive committee led by Soumitra Sen (head of consumer banking) and Anil Rao (chief administrative officer).

Looking Ahead

The leadership overhaul is seen as critical for restoring confidence among investors, regulators, and customers. IndusInd’s chairman Sunil Mehta has assured stakeholders that the new leadership team will be announced in time to stabilize operations and rebuild trust.

As the bank prepares to turn the page, the shortlisted candidates—each with decades of experience—will face the task of tightening controls, repairing credibility, and steering the lender back to growth.

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In what could become the biggest private investment in Bihar’s power sector, four major energy companies have lined up to build a 2,400 MW thermal power plant in Pirpainti, Bhagalpur.

Adani Power, JSW Energy, Torrent Power, and Bajaj Group’s Lalitpur Power Generation Company have each submitted proposals to develop the project, which is expected to cost around ₹28,000 crore. The planned facility will comprise three units of 800 MW each, spread across approximately 1,200 acres already acquired by the state government.

The Bihar State Power Generation Company Limited (BSPGCL), which is overseeing the project as the nodal agency, opened the bidding process on June 17. The deadline for financial bids from qualified players is July 11, with the bids scheduled to be opened on July 16. Authorities expect to issue the letter of award within 30 days of bid evaluation.

The state cabinet had granted in-principle approval for the ambitious project back in February. Under the current plan, the land will be leased to the successful developer at concessional rates to help ensure affordable power tariffs for consumers.

Coal for the plant—estimated at 10.43 million tonnes annually—will be sourced from Eastern Coalfields Ltd’s nearby mines. Water requirements, roughly 60 cusecs, will be met by drawing from the Ganges.

Once operational, the new power station will primarily supply electricity to Bihar’s two state-run distribution companies: South Bihar Power Distribution Company Ltd and North Bihar Power Distribution Company Ltd. Any surplus capacity will be available for sale in the open market.

Officials say this massive addition to Bihar’s energy infrastructure will play a vital role in strengthening the state’s power security, supporting domestic, industrial, and agricultural consumers while accelerating economic growth.

M/s SBI Capital Markets Limited, Mumbai, has been appointed as the consultant to manage the tendering process and advise on project development.

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