Demand for  agricultural  pumps is largely  resilient:  a  “good”  monsoon  boosts  farm  income  and pump purchases,  supported  by  a good  kharif  harvest,  while a  “poor”  monsoon  demands asked to use a pump  to irrigate rabi  plants.  

  According to  a report by CRISIL  Ratings, agricultural (agricultural) pump manufacturers  will  witness a decent revenue growth of 7-9% in FY25. This will  supported by  steady  domestic demand for conventional pumps and  growing consumption  of solar pumps, largely under the PM Kusum  programme.  This will follow  likely revenue growth of  8 to 10  per cent in the current  financial year.  

 Operating  margins  will  also  remain  stable,  at  12-13%  this  financial year  and  next,  thanks to improved  operating leverage and  stable  prices of key raw  materials.  This,  coupled  with a  stable  working capital cycle and moderate capital expenditure (capex), will support  the  credit risk  profile.  

 CRISIL Ratings  analyzed  five  major agricultural  pump  manufacturers, accounting for  nearly  55%  of the  industry’s  revenue estimated at ~Rs 6,000 crore  in FY24  to  publish  the report. The sector is dominated by conventional pumps (grid-connected  pumps  and diesel  pumps),  which  account for about 90% of the market  share, with the  remainder being  solar  pumps.  

 Demand for  agricultural  pumps is largely  resilient:  a  “good”  monsoon  boosts  farm  income  and pump purchases,  supported  by  a good  kharif  harvest,  while a  “poor”  monsoon  demands asked to use a pump  to irrigate rabi  plants.  This was also  evident  in the current  financial year, where  revenue growth  was largely  volume-driven,  as conventional pump  sales  increased amid irregular  monsoons caused by  El Nino  conditions. 

  “Taking into account  normal monsoons in  FY25, industry  revenue growth  will  be  largely  driven by production.  While conventional pumps may see  steady  growth at  6-8%,  solar pump volumes will grow at a faster  rate  of  about 20% year-on-year,  supported by expected  decline  in pump prices,” said Anuj Sethi, Senior  Director.  CRISIL  Rating. 

  Solar  pumps are expected to become cheaper in  FY25  as manufacturers pass on lower prices of solar modules,  an important raw material, the report added. accounts for about 65-70% of the cost of  a  solar  pump. .  This, combined with  increased  order  intake  under the PM KUSUM  program,  is  expected  to close in March 2026; will  be behind  double-digit volume growth expectations for  the  next  fiscal year.  

 Steady growth in  conventional  pump volumes,  coupled with  the prices  of  key raw materials  – cast  iron, steel and copper  (accounting for about 70 to 75%  of total  costs), the  remaining  product lines  will  remain profitable as  operating  healthy at  12-13%  this  financial year.  and the next  (~12%  in  2023), CRISIL Ratings said. 

 “Conventional pump  manufacturers  are operating at  65-70% capacity  and solar pump  manufacturers  at  around 40%, thereby avoiding  the need for  significant investment.  This,  coupled  with healthy cash  flows  and  a steady  working capital cycle, driven by  one-off  receivables and moderate  inventory levels, should  keep  the  credit  profile  in the  sector stable, ”  said Aditya Jhaver, Director, CRISIL Ratings. 

 Debt metrics will remain  strong,  with interest coverage and  leverage  expected at 18-20 times and  below  0.10  times respectively  this  financial year  and  next,  better than  a year. little compared to  fiscal 2023.  Therefore, precipitation  and weather  patterns are the same as  geopolitical  factors. Risks  affecting key  commodity  prices will  need to be monitored.  

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 With the  Premium  Free  option, the insurance company  will pay  the premium on your behalf and  ensure  that  your  investment plan stays on  track  without  increasing the  financial burden on  your  family. 

  Investment and insurance  products are becoming increasingly popular among Indian parents  due to  their dual benefits. They provide life  insurance,  ensure financial protection for  children  in case of unforeseen events, and provide  the opportunity to create  wealth  by investing  in various funds.  

 “Who will pay the  insurance  premium if something happens to me? What will happen to the  plan?  – is  a  question  asked by  many  investors.  One  prominent additional  option that comes to their rescue in a situation like this is  the death premium waiver, which comes into effect in case  of  the  policyholder’s death.  For parents, nothing is more important than securing their  child’s future,  and this  choice  can be a saving  grace  if something  happens  to them.  

 How does WOP work?  Suppose  the policyholder  dies. Often, families may have difficulty meeting  the payments  of  these plans. However, with the  premium free  option, the insurance company  will pay  the premium on your behalf and  ensure  that  your  investment plan stays on  track  without  increasing the  financial burden on  your  family.  

 How WOP secures your investment 

  These  products  include  two  main  elements:  insurance coverage  and  investment  in market-linked funds. Typically, the premium is  divided  between these  items  based on your  needs. The returns  from  stock  market performance of these funds  increase  over time and are  returned  to the nominee when the plan  matures.  If you  die  during the  insurance  period, the insurance  department will provide  financial support to the  candidate.  Unlike standard life insurance policies where  coverage ends  after payment of  the death  benefit,  these plans  continuously increase  the investment component until maturity. With the WOP option, the responsibility for  paying the  premium  is transferred to the  insurance company.  

  The  criteria for  activating  this option  are clear:  it comes into effect  after  the death of the  insured,  ensuring that their dependents do not have to  bear  the  additional  burden of  paying premiums during the period of bereavement .  

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India’s  efforts to promote  rupee transactions for crude  imports have failed to find buyers  as suppliers  expressed  concerns  about  repatriation  and high  transaction costs, the oil ministry said. 

 Currently, the default payment currency for all  crude oil  import contracts  is  US  dollars, in accordance with  international trade  practices.  However,  with an aim  to  internationalize  the Indian currency, the Reserve Bank of India on July 11, 2022 allowed  importers and exporters  to trade  in  Indian  rupees.  

  Although some  non-oil  transactions  have  taken place  in  rupees  with  selected  countries, the Indian currency continues to be shunned by oil exporters. 

  “During the financial year  2022-23, no crude oil imports by oil PSUs were  paid  in Indian  rupees.  Crude oil suppliers (including  the  UAE’s ADNOC) continue to express  concerns about converting capital to  preferred  currencies  and also  highlight the  high  transaction  costs associated with  converting capital as well as  the  risks  exchange  rate fluctuations,”  the  Petroleum Ministry  told  Parliament. Department Committee.  

  Russian  oil imports  increased  44% in October 

  “Payment  for crude oil can be made in Indian  rupees, provided  the  suppliers comply  with  the  regulatory guidelines in this  regard,”  the ministry said.  “At present,  Reliance Industries Ltd and  the  oil PSUs  have  not  entered into any  agreement with any crude oil supplier  for purchase  in Indian currency for  supply of crude  oil.”  

 India is the  third largest  energy  consumer in the world.  With  domestic production meeting less than 15% of  demand,  the country  must import  the remaining crude  oil  to  convert into  fuels such as  gasoline  and diesel at refineries.  

 India bought Russian oil at  $84.20/barrel  in October, highest since  December 2022: report  

 In  fiscal  2023, India spent $157.5 billion  to  import  232.7 million  tons  of crude oil. Iraq, Saudi Arabia,  Russia  and  the United Arab Emirates are  its  main  suppliers. Of  this total,  141.2 million  tons  came from the Middle East,  or  58% of  total supply.  

 Low oil prices could fuel  India’s  next phase of  growth 

 In the current  financial year,  India imported 152.6 million tonnes of crude oil  from  April  to November, worth  $113.4 billion. 

  “India’s  consumption  will  be  around  5.5-5.6 million barrels per  day,” the ministry told the committee. Of this,  we import about 4.6 million barrels per day,  accounting for  about 10% of the  country’s total  oil trade in the  world.”

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 As of the latest figures, at least 13 PSU stocks have achieved multibagger status, delivering impressive returns of up to 267% 

 Public Sector Undertaking (PSU) stocks in India have experienced a stellar surge throughout 2023, leaving their private counterparts behind. Fueled by a robust government capital expenditure initiative, these stocks have not only turned multibaggers but have also set new records in terms of returns and lifetime highs. 

  As of the latest figures, at least 13 PSU stocks have achieved multibagger status, delivering impressive returns of up to 267%. What’s more, a staggering 27 PSU stocks have hit fresh lifetime highs, with December alone witnessing 19 of them achieving this milestone. 

  The S&P BSE PSU index has been a standout performer, rallying over 50% year-to-date and reaching an all-time high of 15,531 earlier this week. In stark contrast, the benchmark Sensex has posted modest returns of just over 16% during the same period.  

 December saw a significant uptick in the gains of PSU stocks, with 28 of them recording double-digit increases. This surge was notably attributed to the strong electoral performance of the Bharatiya Janata Party (BJP) in the state assembly elections of Chhattisgarh, Madhya Pradesh, and Rajasthan. 

  Government capital spending in the current fiscal year has grown by an impressive 34% on a year-on-year basis, slightly below the budgeted estimate of a 36% full-year growth. 

 Leading the charge in the best-performing PSU stocks were companies from the infrastructure and power sectors. REC and Power Finance Corporation, with returns exceeding 250�ch in 2023, secured the top positions. Others, including Power Grid Corporation, NHPC, Coal India, NTPC, Bharat Heavy Electricals, and SJVN, posted substantial gains ranging from 43% to 110%, buoyed by robust domestic power demand. 

  In response to escalating power demand and the limitations of renewable energy alone, the power ministry recently increased its thermal capital expenditure target to 50-55GW, up from the initial 30GW.  

 Rail-related companies within the infrastructure space experienced a phenomenal run, propelled by significant government spending on rail and metro projects. Stocks of IRCTC, Rail Vikas Nigam, IRCON International, and Indian Railway Finance Corporation recorded gains between 36% and 182%.  

 “Railways, being a crucial component of infrastructure, are poised for significant growth in 2024 too. Government investments and policies to modernize the railway network, improve safety, and enhance passenger experience are expected to drive this sector’s performance. Notably, Railway Minister Ashwini Vaishnav has recently announced the launch of 3000 new trains, which demonstrates a commitment to expanding and improving the railway network. Investments in railway infrastructure can have a multiplier effect on related industries, making it an attractive opportunity for investors,” said Anirudh Garg, Partner and Fund Manager at Invasset. 

  Beyond power and infrastructure, sectors that garnered substantial investor attention included defence and aerospace. Bharat Dynamics, Bharat Electronics, Cochin Shipyard, Hindustan Aeronautics, and Mazagon Dock Shipbuilders saw impressive gains of 52-125% in 2023.  

 The Defence Acquisition Council’s recent approval of a Rs 2.23 lakh crore proposal for the Indian Armed Forces, focusing on fighter jets and combat/utility helicopters with 98% localized products, is expected to provide a substantial boost to the Indian defence ecosystem. Analysts predict continued outperformance in 2024 for rail-related and defence sectors, driven by the government’s commitment to technological upgrades and equipment replacement.  

 Garg also said that, we hold a bullish outlook on defense stocks for various reasons. The substantial surge in this sector can be attributed to the strategic implementation of the Defense Production and Export Promotion Policy 2020. This policy sets ambitious targets, aiming for a domestic defense production value of Rs 1,75,000 crore and $5 billion in defense exports by 2025, acting as a significant growth driver. 

  “It promotes mandatory sourcing notifications from domestic companies and fosters collaborative initiatives for Make in India and technology transfer. The defense sector’s order books currently exceed 4-10 times the company’s revenue, indicating robust macroeconomic fundamentals and high demand. Moreover, companies anticipate substantial profits from opportunities valued at $110 billion over the next six to eight years, surpassing the combined revenue of $8 billion in FY23,” Grag said.

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