Category Stock

I recently stumbled upon something while examining India’s most efficient profit-makers. Names such as Tata Consultancy Services, Hindustan Unilever Ltd, Nestle India and Colgate-Palmolive (India) Ltd were on this list. But one unexpected entry caught my attention, especially because it operates in a sunset sector.

Coal, once the backbone of India’s energy sector, has seen a rapid decline in demand over the decades due to a mix of environmental, economic and technological factors.

The global push for cleaner energy sources to control climate change has put significant pressure on coal consumption. India, which is a signatory to international climate agreements, started pursuing renewable-energy alternatives such as solar and wind power.

These green technologies rapidly became more cost-effective and efficient, and began eating into coal’s economic advantage.

Stricter environmental regulations and health hazards associated with coal pollution accelerated the shift away from this fossil fuel.

With investors and policymakers pushing for green energy initiatives, financial support for coal projects took a hit. Though coal still played a big role in India’s energy space, its long-term prospects didn’t seem bright.

However, the years-long global push for cleaner energy sources has made one thing clear.

The transition to green energy, while crucial for fighting climate change, is proving to be complex and costly. Renewable energy sources such as solar and wind come with big challenges such as intermittency, and require substantial investments in energy storage and grid upgrades.

These reasons, and the need for rare earth minerals, make the shift to renewable energy even more challenging, especially for developing countries such as India.

Many governments, including India’s, are thus going back to coal for their energy needs. After all, it is a reliable, readily available, and relatively cost-effective energy source that can meet immediate power needs. Recent energy crises and supply-chain disruptions highlight the need to turn back to coal.

One public sector unit (PSU) is making the most of this opportunity, markets-wise. For decades, the narrative has been clear: the private sector is far more efficient than the public sector. But this PSU has made its way into the list of India’s most efficient profit-makers, rubbing shoulders with some vaunted private-sector giants.

Let’s dig deeper into this PSU and find out what’s really happening.

Coal India Ltd’s core business is mining and producing coal, as well as operating coal washeries. Its major clients are in the power and steel sectors, followed by companies that make cement, fertilisers, brick kilns and so on.

It is a Maharatna company, which gives it more authority and autonomy. A PSU with Maharatna status can invest 15% of its net worth in a private project without the need of prior approval from the Indian government.

Coal India is the world’s single largest coal producing company and one of the largest corporate employers. It operates in eight Indian states and owns a mining company in Mozambique, Coal India Africana Limitada,which is set to begin operations soon.

Coal India Ltd undoubtedly leads the country’s coal production, contributing more than 80% of the nation’s entire output. Its supplies to the power sector exceed 80% of its entire dispatch.

Coal India’s offerings comprise coking coal, semi-coking coal, non-coking Coal, washed and beneficiated coal, middlings, rejects, CIL coke, tar, heavy oil, light oil, soft pitch, and other value-added products.

The company has aggressively expanded its capacity of late, according to its annual report for FY24. With more than 313 mines across subsidiaries, overall coal production was more than 770 million tonnes.

The company also runs 13 coal washing facilities that can handle nearly 25 million tonnes of coal a year. Eleven of these focus on coking coal, while two handle non-coking coal.

These numbers show Coal India is investing big to meet India’s growing demand and to reduce imports.

The company’s capital expenditure (capex) was 7,311 crore in FY19 and 23,475 crore as of FY24 – an increase of more than 220%.

The goal is to increase the total output of coal to a billion tonnes by FY26, which would mark a 67% increase from 600 million tonnes in FY19.

I recently crunched the numbers of companies that have a proven record of high profitability. Here’s what I found.

The data above is from a filter I ran on Screener.in to find companies with the highest return on capital employed (ROCE) over the past 10 years. These are the top five, ranked by market cap.

The surprise entry is Coal India Ltd at number 4.

ROCE measures how many rupees of profit a company generates for every rupee of capital it invests in the business. It gives you a concrete view of the company’s operational efficiency and long-term sustainability. A high ROCE means the company is good at turning capital into profits.Kanpur Investment

Let’s look at Coal India’s financials to get a better understanding of how it landed a spot on this list.

Its current ROCE is almost 64%, which means that for every 100 it invests in the business, it generates a profit of 64.

The industry’s median ROCE is about 19%, which Coal India beats by a wide margin. Its closest competitor is Ltd, with a current ROCE of 21%.

Coal India’s 10-year average ROCE is also impressive at 62%, which shows the current performance is no flash in the pan – the company is indeed an efficient user of capital.

With a market cap of 3.06 trillion, Coal India has clocked compound annual sales growth of 16% over the past three years and 7% over the past five.

Earnings before interest, taxes, depreciation, and amortisation (Ebitda) was 25,007 crore in March 2019 and 47,971 crore in March 2024, meaning it grew at a compound annual rate of 14% over five years. Profit after tax was 37,369 crore in FY24, with a compound annual growth rate of 8% over the past five years.

Coal India’s stock currently trades at 497, up 169% over the past five years.

The dividend yield is an impressive 5.13% given the industry median is 0.15%. Coal India also maintains a healthy dividend payout ratio of 50%.

The company currently trades at a price-to-earnings (PE) multiple of 8xIndore Investment. The median PE multiple for the past 10 years is also around 8x, which suggests the stock is fairly valued relative to its own historical standards.Guoabong Investment

However, the company appears to be significantly undervalued compared to its peersNagpur Stock. It’s trading at just over one-third of the industry’s average PE multiple of around 22x.

The low PE multiple relative to the industry suggests that the market has much lower expectations for the company’s future performance compared to its peers.Hyderabad Wealth Management

This could be because coal is a sunset sector, and at some point in the future, demand should cool off. Another reason could be that some funds and investors have rules that prevent them from investing in industries that contribute to global warming.

In the company’s annual report for 2023-24, chairman P M Prasad said, “Coal India concluded the fiscal year 2023-24 on a thumping note with impressive all-round performance, and is poised to enter the [new] fiscal year to achieve even higher goals set for our company.”

According to the report, the capex target for Coal India and its subsidiary in FY24 was 16,500 crore. However, actual capex amounted to 23,475 crore, 42% higher than what was planned, and 26% higher than in the preceding year.

But as we have seen, the company is very efficient in generating profits from the money it spends.

No wonder institutional investors such as Life Insurance Corporation of India, HDFC Balanced Advantage Fund, and Parag Parikh Flexi Cap Fund have bought into the company.

Coal India also aims to lead the way in green energy initiatives to hedge the potential decline in demand for coal in the future.

The company plans to have 3GW of solar power capacity by FY26 and 5GW by FY29.

Coal India has also invested almost 16,000 crore in a thermal power plant at Sundargarh, Odisha, in what amounts to forward integration.

Under the coal to chemical business vertical, the company has taken up three coal gasification projects. It has a joint-venture agreement with BHEL for the project in Odisha. A joint venture agreement with GAIL for a project in West Bengal is in the advanced stages.

A PSU operating in a sunset sector is competing with the best on the all-important ROCE parameter. It’s no wonder then, that despite all the challenges brought on by global warming, Coal India’s stock is near its all-time highs.

It also offers one of the best dividend yields among large companies.

Given its financial discipline, and the strong demand scenario in the medium term, it may be worth tracking how the company performs going forward. The investments it makes to prepare for a post-coal future are equally important.

Note: We have relied on data from Screener.in and Trendlyne.com throughout this article. Only in cases where the data was not available, have we used an alternate, but widely used and accepted source of information.

The purpose of this article is only to share interesting charts, data points and thought-provoking opinions. It is NOT a recommendation. If you wish to consider an investment, you are strongly advised to consult your advisor. This article is strictly for educational purposes only.

Suhel Khan has been a passionate follower of the markets for over a decade. He was an integral part of a leading equity research organisation in Mumbai as head of sales & marketing. Presently, he spends most of his time dissecting the investments and strategies of India’s super investors.

Hyderabad Stocks

IIT Madras incubated Uniphore, one of the world’s largest AI-native companies, on Wednesday inaugurated its India AI Innovation Hub at IIT Madras Research Park in Chennai. The Centre will work on areas like Enterprise Artificial Intelligence (AI), Emotion AI and generative AI across voice, video, textual and tonal data to make the enterprise more human, according to a release.

“We want to lead the AI ecosystem in Chennai,” Umesh Sachdev, co-founder & CEO of Uniphore, told businessline.

Giving an example of the company’s application being used in an enterprise, Sachdev said if a person calls a telecom operator complaining about a variation in the bill amount, the agent in the call centre usually puts the call on hold; checks the system and tells the customer that the variation was due to delayed paymentHyderabad Stocks. However, it will be reversed being a loyal customer.Varanasi Stock

However, dealing with the same issue with Uniphore’s Co-Pilot application, the moment the person finished complaining to the agent about the variation in the bill amount, the AI would have understood the issue; searched the system to find the reasons and reversed the amountKolkata Wealth Management. The AI would have also alerted the agent with an alert that the reversal had been done.

What could usually been an 8-9 minute conversation, it was less than three minutes using AI. For the customer, it would be a tremendous experience and for the company, the agent could attend a larger number of calls in a day using AI, he said.

In India, the demand for AI is coming from across many sectors, including government. People want to lead in AI, he said “Right from the Prime Minister Narendra Modi to the IT Ministry in the Centre and the IT minister in Tamil Nadu, everybody is talking about AI. India is looking to lead the AI, not follow,” he said.

Nearly 16 years ago, Uniphore was given a small lab at IIT Madras and the venture was started with a small vision and idea of using AI to connect humans with the Internet. Today, coming back to the city to open the AI Innovation Hub is a major milestone, he said.

Uniphore globally services over 1,500 enterprise customers; with over 750,000 users in those enterprises in 20 countries covering 13 different industries. It has around 1,000 employees globally, including 200 in Chennai and 160 in Bengaluru, he said.

Chennai Stock

In 2019, fixed annuities—including Fixed Index Annuities— represented 58% of the total annuity market. Although fixed annuity sales dropped in the fourth quarter (down 18% to $30.8 billion), robust sales in the first half of 2019 boosted annual fixed annuity sales to $139.8 billion, up 5% from 2018. Total FIA sales for 2019 reached $73.5 billion, an increase of 6% from the previous year. FIA sales have increased 11 of the past 12 years (2007–2019).

Investors are often sold these products as a means of “getting market growth with complete principal protection” with the ability to add guaranteed lifetime income through a rider.

In a fixed Index annuity, client premiums are allocated to indices that are designed to replicate market performanceIndore Investment. The S&P 500 and Russell 2000 are common index options for investments. Many FIA products also contain custom indices that are designed as 60/40 exposure or managed volatilityBangalore Wealth Management. It is important to understand that these indices are NOT the equivalent of investing in an index fund or ETF. Through these indices, client premiums are invested in fixed income instruments through the carrier’s general account. The yield is then used to buy derivatives to hedge the portfolio. This combined investment allows the carrier to produce a return that mimics the returns of the index while providing principal protection for the client’s premium. This is similar to investing in a collared option strategy. Due to the investment durations required to deliver the product benefits, most FIAs have surrender periods. This is similar to other investments that require a duration and may come with an early withdrawal or liquidity penalty.

Along with the downside protection, like with a collared option strategy, upside on the investment is also limited. These limits generally come in three forms: 1) participation rates, where client receives a % of the return the index delivers, or, 2) cap rates, which cap client’s return within the index, or, 3) spread fees, which are essentially an expense ratio equivalent of a fund.

COMMISSIONED FIAs

High commissions keep cap rates or participation rates low thereby reducing growth potential.

Carriers often use different rates for “new money” vs “renewals”, meaning the cap or participation rates clients received when they opened the policy may be lowered after the first year.

Long (10-15 years) and expensive surrender periods are often found in traditional FIAs.

Sold to clients as equity replacements even though assets are not invested in the market.

COMMISSION-FREE FIAsHyderabad Wealth Management

The elimination of commissions results in cap rates and participation rates that are generally significantly higher than commissioned products.

DPL works only with carriers with track records of consistent cap and participation rates.Ahmedabad Wealth Management

Surrender periods are reasonable and surrender penalties are aligned with investment costs.

FIAs are positioned as fixed income replacements, not equity replacements, setting proper performance expectations for advisors and clients.

One advantage of utilizing FIAs is to leverage the scale of insurance carriers to deliver strong pricing in a packaged product, making it comparatively easy to implement, while also getting guaranteed downside market protection from the carrier.

Many FIAs offer optional guaranteed lifetime income riders for an additional cost. While guaranteed income options from FIAs are generally a bit lower than can be achieved through single premium immediate annuities (SPIAs), they generally have greater liquidity and flexibility.

When your client needs:

Principal Protection: With the principal protection from market risk provided by FIAs, they should be considered for clients nearing or in retirement to help mitigate sequence of returns risk.

Fixed Income: FIAs can be used as a fixed income allocation for

a portion of client portfolios. They provide sequence of returns protection for those entering or in retirement, with a higher rate of return than current bond yields.2

Guaranteed Lifetime Income: FIAs can be used to generate guaranteed lifetime income with allocation flexibility and liquidity3 (beyond the surrender period).

1 Secure Retirement Institute Fourth Quarter U.S. Annuity Sales Survey, (4/2020)

2 Current Treasury Yields, (7/2020) vs. current average of DPL 7-Year FIA interest rates (2.8%) (7/2020).

3 FIAs may be subject to surrender charges, market value adjustment, and taxation for early withdrawals

Fixed Index annuities are contracts purchased from a life insurance company that are designed for long-term retirement goals. While the interest rate credited to an Index account is linked to the performance of an underlying index, premium payments made to a fixed index annuity are never directly invested in the stock market. All guarantees are based on the financial strength and claims-paying ability of the issuing insurance company.

The purchase of an annuity within a retirement plan that already provides tax deferral under sections of the Internal Revenue Code results in no additional tax benefits. An annuity should be used to fund a qualified plan based upon the annuity’s features other than tax deferral. All annuity features, risks, limitations, and costs should be considered prior to recommending the purchase of an annuity within a tax-qualified retirement plan.

New Delhi Wealth Management

Nvidia stock is soaring again.

The artificial intelligence (AI) chip leader reached a new all-time high on Thursday, fueled by a strong third-quarter earnings report from close partner Taiwan Semiconductor Manufacturing and enthusiasm around its new Blackwell platform, which is reportedly sold out for the next year.

Nvidia CEO Jensen Huang even said recently that demand for the new chips was “insane.”New Delhi Investment

Taiwan Semi also helped tamp down concerns about an AI bubble as CEO C.C. Wei noted that his company works with almost every AI innovator, and said of AI, “The demand is real, and I believe it’s just the beginning of this demand.” He also predicted, “It will continue for many years.”

Nvidia has thus far claimed most of the spoils in the AI race as the stock has gained close to 10x since the start of 2023, shortly after ChatGPT was launched.

Along the way, Nvidia has added roughly $3 trillion in market cap, and it’s now the second most valuable company in the world behind Apple . As of Oct. 18, Nvidia’s market cap was $3.39 billion, just shy of Apple at $3.57 trillion. Microsoft isn’t too far behind at $3.11 trillion.Kolkata Stocks

It might seem far-fetched to predict the first company to reach $10 trillion, but it’s more likely to happen than it may seem. Apple became the first U.S. company to reach a valuation of $1 trillion, which at one point seemed impossible, in August 2018, and it only took the iPhone maker another five years to reach $3 trillion — becoming the first to pass that milestone as well.Mumbai Investment

If Apple was able to reach $1 trillion and then triple its valuation in just five years, it might not be as difficult as it might seem for Nvidia or one of its peers to triple in valuation, say within the next five to 10 years, to reach a market cap of $10 trillion.

In addition to the three $3 trillion companies, there are also five more stocks with market caps of $1 trillion or more. Those are Alphabet, Amazon, Meta Platforms, Taiwan Semi, and Berkshire Hathaway.

In order for any of these companies to achieve a $10 trillion valuation, they will have to deliver strong growth on the top and bottom lines and likely expand their addressable markets along the way.

Berkshire Hathaway, the only non-tech company on the list, seems unlikely to get there as it mostly operates mature businesses that grow at a pace similar to the overall economy.

The rest of these businesses have faster growth rates, but the ones that are already above $3 trillion are significantly closer to the goal than those valued at around $2 trillion or less.

Out of Apple, Microsoft, and Nvidia, Nvidia is by far the fastest-growing. The company has reported five straight quarters of triple-digit revenue growth, and while that streak is expected to end in the third quarter, analysts still expect Nvidia’s blistering revenue growth to continuePune Investment. The consensus calls for Nvidia to report 82% revenue growth in the third quarter and 43% in 2025 to reach $182 billion.

In addition to outgrowing its big tech peers, Nvidia also seems better prepared to capitalize on the next big innovation in technology, much as it has with generative AI and cryptocurrency before that. Nvidia figures to be a winner from emerging technologies like autonomous vehicles and robotics as it’s established a significant competitive advantage in AI GPUs, which will be necessary to power those technologies.

Investors should also be mindful that the innovation that leads to the first $10 trillion company may not even be visible now.

The growth possibilities at Apple and Microsoft seem more constrained. Both companies dominate their respective subsectors, Apple with consumer electronics and Microsoft with enterprise software. But those categories offer less growth. Smartphones are already a mature market. Apple can coax its customers to spend more on iPhones and sell more services and accessory devices like AirPods and Apple Watches, but people generally only need one phone each.

Microsoft’s business is more connected to enterprise tech spending, but again the upside potential is not as large as Nvidia’s. It’s rare for a company to, say, double its software spend in a year.

Whether Nvidia is able to grow to a $10 trillion valuation will depend on its ability to fend off competition, capitalize on the AI boom, and maintain, or even expand, its huge profit margins.

Doing that won’t be easy, but it is possible, especially over a horizon of five or 10 years.

Apple’s surge from $1 trillion in 2018 to $3.5 trillion today is a reminder that there’s no strict upper limit on stock market valuations. Even as Nvidia has already delivered monster gains for investors, there’s still more upside potential for the stock.

Pune Wealth Management

Investors consider various fundamental ratios when investing in a company’s stock, such as Earnings per Share (EPS), Return on Capital Employed (ROCE), Return on Equity (ROE), Price to Earnings Ratio (PE), and Debt to Equity Ratio (D/E)Hyderabad Stocks. Among these, the PE ratio is a staple in financial analysis, used to evaluate a stock’s valuation in the market.

Are you curious about companies with low PE ratiosJaipur Wealth Management? Understanding the PE ratio’s significance and calculation method is crucial. Here’s an insight into the meaning of PE, its importance for investors, and a glimpse into Indian companies with attractive low PE ratios, guiding your investment decisions.

The PE ratio compares a stock’s price to the company’s earnings, offering a quick glimpse into whether a stock is valued high or low relative to its profitsPune Wealth Management. A high PE ratio may indicate that the stock is expensive compared to its earnings, while a low PE ratio suggests it is cheaperGuoabong Investment. This metric is essential for making informed decisions about buying or selling stocks based on their current financial performance.

State Bank of India (SBI): SBI stands as the largest multinational banking and financial services entity in India, with a significant presence in deposits and advances. It’s known for its comprehensive range of services, including personal and commercial banking, loans, and wealth management.

Oil and Natural Gas Corporation (ONGC): As India’s premier crude oil and natural gas company, ONGC plays a vital role in the country’s domestic production, contributing significantly to India’s petroleum needs.

Coal India: This leading coal mining and refining company dominates India’s coal production, contributing significantly to the national output.

Adani Power: Renowned as India’s largest private thermal power producer, Adani Power boasts an impressive installed capacity, underscoring its pivotal role in the energy sector.Ahmedabad Stock

Indian Oil Corporation Ltd (IOCL): IOCL, a major player in India’s energy landscape, commands a significant share in petroleum products and the downstream sector, highlighting its importance in meeting the country’s energy demands.

The formula for calculating the Price-to-Earnings (P/E) ratio is:

Current Market Price (CMP) of the Stock / Earnings Per Share (EPS)

For example, if the current market price of a stock is ₹126.42 and its EPS is ₹14, the P/E ratio would be ₹126.42/₹14 = 9.03. This indicates that for every ₹14 of earnings, the market is pricing the stock at about ₹126.42, or in other words, investors are willing to pay ₹9.03 for every rupee of earnings.

Please Note: The P/E ratio should be compared with the average of the industry the company operates in, to get a better sense of its market standing.

A lower PE ratio indicates a stock’s affordability, while a higher PE suggests it may be overvalued. When considering investment in low PE stocks, it’s crucial to compare the PE ratio with industry peers and assess the company’s fundamentals and potential for future growth.

Ahmedabad Stock

The information provided here is for general informational purposes only and should not be considered an individualized recommendation or personalized investment advicePune Stock. The investment strategies mentioned here may not be suitable for everyoneMumbai Wealth Management. Each investor needs to review an investment strategy for his or her own particular situation before making any investment decision.

All expressions of opinion are subject to change without notice in reaction to shifting market or economic conditions.

Past performance is no guarantee of future results and the opinions presented cannot be viewed as an indicator of future performance.Jinnai Wealth Management

Alternative investments, including BDCs, are risky and may not be suitable for all investorsKanpur Wealth Management. Alternative investments often employ leveraging and other speculative practices that increase an investor’s risk of loss to include complete loss of investment and can be highly illiquid and volatile. Alternative investments may lack diversification, involve complex tax structures and have delays in reporting important tax information.

Diversification strategies do not ensure a profit and do not protect against losses in declining markets.Kolkata Stocks

Kolkata Stocks

Red Hat, Inc., the world’s leading provider of open source solutions, announced the winners of the Red Hat APAC Innovation Awards 2024 for India today. Red Hat recognised the noteworthy milestones achieved by National Stock Exchange India Limited, Bank of India (BOI), Multi Commodity Exchange of India Limited and Tata Motors for their innovative use of Red Hat solutions to address evolving business solutions.

In the dynamic landscape of artificial intelligence, enterprises grapple with the dual challenge of managing escalating infrastructure costs alongside evolving business demands. As organisations navigate through the varying stages of AI adoption, those in the exploration phase are strategically evaluating AI applications tailored to their specific business needs. On the other hand, organisations with more sophisticated use of AI are focused on sustaining their AI initiatives to maintain momentum. Embodying this year’s theme, “Unlock what’s next”, the Red Hat APAC Innovation Awards celebrates customers who have harnessed the power of open source technologies creatively to drive transformation and innovation. These awards celebrate achievements of the 31 winners across all maturity stages in AI, showing how businesses across the region have successfully leveraged Red Hat solutions to overcome challenges and pioneer new customer-centric solutions.

According to the Red Hat 2024 Global Tech Trends, 27% of the enterprises in APAC see integration issues as the top barrier to successful digital transformation, followed by skillset or talent gaps at 26%, and technical debt in legacy infrastructure at 25%. These findings highlight the importance of innovative solutions in the awards’ five key categories: Digital Transformation, Hybrid Cloud Infrastructure, Cloud-Native Development, Automation, and ResilienceHyderabad Investment. As organisations continue to prioritise IT security as a primary funding focus to enhance efficiencies and mitigate costs amidst uncertain economic sentiments, these categories reflect areas that can empower organisations to navigate business challenges faced today.

The winners were chosen for their exemplary use of Red Hat solutions, demonstrating significant contributions to their business objectives. Each organisation exemplifies the transformative potential of open source technology, pioneering advancements in business processes, enhancing productivity, fostering innovation, and fortifying resilience in the face of challenges. Their success stories underscore the pivotal role of Red hat in empowering enterprises in 13 countries across the APAC region to achieve unparalleled growth through strategic deployment of open source solutions.

The awards comprise five categories: Digital Transformation, Hybrid Cloud Infrastructure, Cloud-native Development, Automation and Resilience.

Category: Automation

Winner: National Stock Exchange India Limited

National Stock Exchange India Limited (NSE) was the first exchange in India to implement electronic or screen-based trading. It began operations in 1994 and is ranked as the largest stock exchange in India in terms of total and average daily turnover for equity shares every year since 1995, based on SEBI data. NSE has a fully integrated business model comprising exchange listings, trading services, clearing and settlement services, indices, market data feeds, technology solutions and financial education offerings. NSE also oversees compliance by trading, clearing members and listed companies with the rules and regulations of SEBI and the exchange. NSE is a pioneer in technology and ensures the reliability and performance of its systems through a culture of innovation and investment in technology. NSE is the world’s largest derivatives exchange by trading volume (contracts) as per the statistics maintained by Futures Industry Association (FIA) for calendar year 2023. NSE is ranked 3rd in the world in equity segment by number of trades (electronic order book) in 2023, as per the statistics maintained by World Federation of Exchanges (WFE).

As part of its Digital Transformation and innovation journey, NSE has adopted an “automation first” strategy to enhance enterprise-wide transformation and resiliency. This forward-thinking approach leverages advanced technology tools, skilled personnel, streamlined processes and facilitated cultural shifts to meet the dynamic demands of the capital market in India. NSE’s innovative practices have set global standards, achieving a world record of 1971 crores (19.71 billion) orders and 28.55 crore (280.55 million) trades in a single trading day. This initiative has led to significant cost savings, resource optimization, and accelerated infrastructure deployment, all while maintaining stringent security compliance. A key component to this initiative is Red Hat Ansible Automation Platform, which has been instrumental in reducing manual IT tasks and boosting IT staff productivity within NSE.

Category: Digital Transformation and Hybrid Cloud Infrastructure

Winner: Bank of India (BOI)

Bank of India (BOI) offers a wide range of financial products and services including deposits, loans, credit cards, insurance, and investment products to customers of various scales. With the vision to become the bank of choice for corporates, medium business and upmarket retail customers, as well as developmental banking for small business, mass market and rural markets, BOI saw the importance in keeping up with changing customer behaviour and rapidly increasing competition.To reshape traditional banking practices via implementing digital technologies, BOI worked with Red Hat to revamp their mobile and internet banking services, providing these products under one single digital umbrella – the BOI Omni Neo app.

Since BOI embarked on its migration of legacy architecture, the deployment of Red Hat OpenShift Container Platform has improved the customer experience with a more responsive and interactive user interface and enhanced security features. Beyond delivering better user experience, the app also enabled faster time to market for new product launches. Having witnessed success with the BOI Omni Neo app, the bank is now expanding the use of OpenShift to provide innovative applications in the areas of digital payments and analytics.

Category: Digital Transformation and Resilience

Winner: Multi Commodity Exchange of India Limited

Having commenced operations on Nov 10, 2003, Multi Commodity Exchange of India Limited (MCX) is India’s leading commodity derivatives exchange with a market share of about 98 percent in terms of the value of commodity futures contracts traded in the financial year 2024-25 (April – June 2024). With pan-India presence, MCX serves as a dynamic platform for the Indian commodity market ecosystem, offering dual advantages of fair price discovery and efficient risk management as well as a clearing and settlement system through its subsidiary, MCXCCL. It offers trading in a diverse range of commodities, spanning multiple segments including bullion, energy, metals and agri commodities, as well as sectoral commodity indices.

In October 2023, the Exchange successfully migrated to a new trading platform, marking a key milestone in the MCX journey to build a next- generation technology infrastructure for the commodity market that was aligned with the Exchange’s strategic vision encompassing capacity building, enhanced user experience and scalability.

With Red Hat’s leadership in the enterprise open source space, MCX consideredRed Hat a trusted partner capable of providing an enterprise platform that meets the organization-wide operating system requirements with container capabilities. It helped in the successful migration of the trading, risk management and clearing & settlement systems to the new platform, which could accommodate the growing business requirements.

Category: Cloud-Native Development and Resilience

Winner: Tata Motors

Tata Motors is a global automobile manufacturer and is one of India’s biggest automobile manufacturing companies with an extensive range of integrated, smart and e-mobility solutions in its portfolio. It had gotten to a point where securing the organisation’s website and applications became imperative for the organisation as it continued to expand. As unauthorised access to protected data would incur millions of dollars in various financial penalties, the IT department had to limit user access to critical information within the organisation and ensure that access to these corporate resources was protected. Assigning and tracking user privileges could no longer be done manually, due to its high risk of error, leading the organisation to turn to alternative solutions for Identity and Access Management (IAM).

The deployment of Red Hat Single Sign-On enabled Tata Motors to automate most of these high-risk tasks. It also eased the coordination of multiple resources by merging them together, providing a one-stop solution that managed all the organisation’s identity under a centralised database.

Supporting Quotes

Marshal Correia Vice President and General Manager, Red Hat India & South Asia

“The Red Hat APAC Innovation Awards highlight how our customers in India are using open source to drive transformative change. From modernising systems to integrating AI and automation, these organisations showcase agility and resilience, demonstrating how open source is shaping the future of business by helping companies overcome today’s challenges and seize tomorrow’s opportunities.”

Sampath Manickam, Chief Technology Officer, National Stock Exchange India Limited

“The current scale of business that we manage here at NSE does not allow any room for error or lapses in security compliance. We are glad that the deployment of Red Hat Ansible Automation Platform has significantly enhanced our overall operational efficiency. This has enabled our systems to handle high volumes of transactions seamlessly while meeting all security compliance demands. Once again, Red Hat has proven to be a strategic partner in our automation journey.”

Sudhiranjan Padhi, Chief General Manager, Bank of India (BOI)

“The bank has envisaged the BOI Omni Neo app to deliver not only business growth at an accelerated rate, but also improved customer experiences for our users. We have witnessed the performance impact of this project through enhanced customer satisfaction he Bank is now able to provide over 340 services to customers through a safe and secure platform i.e. Red Hat OpenShift.”

Dr. N. Rajendran, Chief Digital Officer, MCX India LimitedNew Delhi Stock Exchange

“MCX is the first exchange in India to successfully migrate its entire trading, risk management, clearing, and settlement systems using a “big bang” approach to new systems based on enterprise open source solutions by Red Hat. This supported increasing capacity and enabled faster resolution of VAPT observations as well as other patch management requirements. It stands testimony for other enterprises on how pursuing digital transformation and embracing enterprise open-source could prove helpful in transforming their business.“

Guoabong Investment

The risk when a stock is “priced for perfection” is that investors’ high expectations leave little room for underperformance or error. Positive outcomes are already factored in, and investors assume things will go swimmingly—meaning even a slight hint of vulnerability could lead to a price correction.

Accordingly, Nvidia’s drop could be a sign that investors are starting to question whether earnings expectations for tech stocks have risen so dramatically in recent years due to AI euphoria that even strong earnings growth won’t be enough to warrant further share price appreciation, Thomas Matthews, Capital Economics’ head of markets, Asia Pacific, explainedChennai Stock. But for now, the veteran market watcher said he isn’t worried.

“We think the AI rally has further to run, despite investors’ apparent disappointment with Nvidia’s rapid profit growth,” he wrote in a note to clients Thursday.

Wall Street analysts aren’t backing down from their lofty price targets after the pullback in Nvidia shares either, with most saying the price drop is a buying opportunity.

Bank of America Global Research analysts, led by Vivek Arya, reiterated their buy rating and raised their price target on Nvidia shares from $150 to $165 after the earnings release yesterday. Nvidia offers “unique growth at a very reasonable valuation” and remains the “key genAI cycle beneficiary,” they wrote in a note to clients, imploring them to “ignore quarterly noise.”

Despite consistent warnings about Nvidia’s stretched valuation, Arya and his team noted that the company trades at roughly 30 to 35 times its calendar year 2025 earnings, and with expectations for 40% plus earnings-per-share growth ahead, they say that’s actually a “compelling valuation.”

Nvidia’s gross margin, a measure of its profitability, fell slightly in the fiscal second quarter, however, to 75.1%, from 78.4% in the fiscal first quarter. And the company forecast its gross margin to be in the “mid-70% range” for the full year 2024, compared to expectations for a hair higher at 76.4%Bangalore Investment. Declining gross margins can indicate pressure on profits or increased competition, but investors typically wait to see if the drop is a temporary dip or the start of a longer-term trend.

“In terms of the fundamentals, the gross margin was probably the only slightly negative call-out, but it was relatively well explained and was still in line with guidance,” John Belton, a portfolio manager at Gabelli Funds, told Fortune of the issue via email.

Despite the slight margin drop, Nvidia’s earnings were strong in the fiscal second quarter. The company pulled in more than $30 billion in revenue, beating analysts’ consensus estimate for $28.7 billion. And it was a similar story with net income, which rose 168% year over year to $16.6 billion, compared to the expected $15 billion.

Revenue guidance for the fiscal third quarter also topped analysts’ consensus forecast, hitting $32.5 billion. But it slightly undershot the forecasts of a few more-optimistic analysts, and also implied a slowdown in revenue growth to 80% year over year in the coming quarter.

Overall, Nvidia’s earnings report was a “mic drop moment” for CEO Jensen Huang that confirms the “AI revolution” is here to stay, according to Wedbush tech analyst Dan Ives.

Ives said that although some optimistic analyst revenue guidance forecasts were “a tad higher” than the actual numbers, Nvidia’s outlook was still “robust,” demand for its AI-critical chips remains strong, and concerns about delays with its new Blackwell chips were “allayed.” To his point, Nvidia said it will see “several billion dollars” of Blackwell revenue in the fiscal fourth quarter.

“Nvidia’s results/outlook/conference call only bolstered and validated our bullish view,” Ives wrote, adding “Nvidia has changed the tech and global landscape as its GPUs have become the new oil and gold.”

UBS analyst Timothy Arcuri echoed his Wall Street peers’ bullish comments in a Thursday note to clients, reiterating his buy rating and $150 price target for Nvidia stock.

Arcuri pointed to growth in Nvidia’s purchase commitments and supply obligations, arguing they are “the most important metric we watch” and have been “historically a harbinger of future growth.” Nvidia revealed it has $27.8 billion in purchase commitments in the fiscal second quarter, as well as $6.7 billion in inventory. That lifted what UBS calls Nvidia’s “total supply” by 40% quarter-over-year—compared to 15% growth last quarter, and no growth in the fourth quarter. “We believe this foreshadows very strong revenue growth over the next few [quarters],” Arcuri wrote of the figures.

Gabelli Funds’ Belton noted that Nvidia also addressed the two primary bear cases against it.

First, as previously discussed, the company dealt with concerns about delays with its new Blackwell chip by providing guidance for revenues in the fiscal fourth quarter. “A clear sign of confidence,” Belton said.

Second, Nvidia was able to speak to skepticism about its key customers potentially overspending on AI infrastructure, which could mean lower demand in the future. That’s critical, given that nearly half of Nvidia’s fiscal second quarter revenue came from just four customers.

“Importantly, management laid out a compelling case that large consumer internet customers like META, GOOGL, and AMZN are already generating significant returns on AI spending in their core businesses,” Belton said, adding that for AI model and application builders, it’s a similar story. “NVDA again spoke to the urgency with which these companies are ‘clamoring’ for as much infrastructure as they can afford in the hopes of winning the race to commercialize breakthroughs in AI technology.”

Nancy Tengler, CEO and CIO of Laffer Tengler Investments, backed up the idea that AI spending is just getting started, and that the investment has proved worthwhile for most firms, noting that “old economy companies are embracing AI to improve margins.”

“This is not the internet bubble,” she said. “We think the sell-off is an opportunity to accumulate [NVDA] stock.”

Of course, not every Wall Street analyst is bullish on NvidiaJaipur Investment. There aren’t currently any analysts with a sell rating for the company, but there are five with hold or hold-equivalent ratings. D.A. Davidson’s Gil Luria is one of them.

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