Tuesday, August 20, 2019

Govt removes DRR

Government has removed Debenture Redemption Reserve requirement for issuance of debentures by non-banking financial companies, housing finance companies and listed firms. 

The corporate affairs ministry has said that the requirement for a DRR of 25 per cent of the value of outstanding debentures issued by listed companies, Non-Banking Financial Companies  and Housing Finance Companies has been removed.

NBFC and HFC stocks are likely to see traction in today's trade.

IPO NEWS : Manipal Health Enterprises plans listings

Manipal Health Enterprises is looking at listing on the bourses in the next two years in order to give its investors TPG Capital and Temasek  an exit.

M H E is one of India’s leading hospital networks, providing multi-speciality care to both Indian and international patients. With more than 6,000 operational beds across its network of hospitals and with its experienced team of medical professionals, it is committed to provide quality and affordable health care.

Sunday, July 28, 2019

ICICI Bank reports good numbers in Q1

ICICI Bank, India's biggest private sector bank, has posted a profit of Rs 1,908 crore in June quarter. 

The bank had posted a loss of Rs 120 crore in the year-ago period and a profit of Rs 969 crore in the previous quarter. 

Net interest income grew  by 27 percent year-on-year to Rs 7,737 crore for quarter that ended on June 2019 with healthy loan growth of 15 percent YoY.

The stock closed at Rs 416, up Rs 7 in Friday's closing.

Thursday, July 25, 2019

GLOBAL RANKING : RIL top ranked Indian company

Image result for ril

Reliance Industries  has become the top-ranked Indian company to feature in the latest Fortune Global 500 list.
The oil-to-retail major has toppled state-run Indian Oil Corporation  as the top-ranked Indian company.
RIL has attained a rank of 106 in the latest list, recording an improvement of 42 positions from its previous ranking.
On the other hand, IOC improved its position to 117th rank, registering a jump of 20 spots.
Other Indian companies in the Fortune Global 500 list include ONGC (160), State Bank of India (236), Tata Motors (265), Bharat Petroleum (275) and Bangalore based Rajesh Exports is at 495.

IPO ANALYSIS: AFFLE INDIA LIMITED - AVOID

Issue Details :


Issue opens
/closes on


29-07/31-07-2019
Issue size
Rs 459 Cr
Face value
Rs 10
Price Band
Rs 740-745
Business
Technology - consumer
intelligence 
platform that delivers
consumer acquisitions,
engagements
 and transactions through
 relevant mobile
advertising / E commerce.
Promoters
ANUJ KHANNA SOHUM AND AFFLE HOLDINGS PTE. LTD
Listing
Bse, Nse
BRLM
ICICI Securities, Nomura
Registrar
Karvy
Await detailed analysis.

Thursday, July 11, 2019

Axis Bank to raise Rs 9000 Cr, appoints merchant bankers

 Axis Bank has appointed investment banks Citigroup, JP Morgan and Axis Capital to help it raise up to Rs 9000 Cr through a share sale, said a person aware of the development.

The bank plans to raise the funds through a qualified institutional placement  offering by selling shares to institutional investors. It will help the bank shore up its capital adequacy ratio and push for lending growth.

Axis Bank closed at Rs 768, down Rs 18 in yesterday's trade.

Wednesday, May 22, 2019

Govt mulls merger of OBC, Andhra and Allahabad Bank with PNB

Center is mulling merger of two or three small state-run banks - Oriental Bank of Commerce, Andhra Bank and Allahabad Bank with PNB.

Tuesday, May 7, 2019

Exceptional one time credit help Bharti Airtel to post Rs 576 Cr net

 Bharti Airtel on Monday reported a consolidated profit of Rs 576 crore, a jump of 37 per cent during the fourth quarter ended March 31, as compared with Rs 419 crore in the corresponding period last year.
The net profit  was bolstered by a one-time exceptional credit of Rs 2,168 crore arising from re-assessment of levies, based on a recent pronouncement.
The consolidated revenue of the company also rose by six per cent YoY to Rs 20,602 crore during the quarter as against Rs 19,394 crore in January-March 2018.

ICICI Bank's net dips in Q4

 ICICI Bank has registered a five per cent drop in its net profit in the fourth quarter of 2018-19.

The bank’s net profit fell 4.99 per cent to Rs 969 crore in the January to March 2019 quarter from Rs 1,020 crore a year ago.


The bank’s bad-loan provision rose to Rs 5,451 crore in the fourth quarter of 2018-19 from Rs 4,244 crore in the third quarter.


Friday, April 26, 2019

IPO ANALYSIS : ARTEMIS ELECTRICALS LTD - Avoid




Issue Details :

Issue opens
/ closes on
24-04 /30-04-2019
Issue size
70,00,000 equity shares
Face value
Rs 10
Price Band
Rs 55-60
Business
Mfrs of LED lighting
systems /accessories
Promoters
PRAVIN KUMAR AGARWAL & M/S YASHVIKRAM INFRASTRUCTURE PRIVATE LIMITED

Listing
Bse, sme
BRLM
Fedex Securities
Registrar
Cameo Corp services

IPO ANALYSIS : WHITE ORGANIC RETAIL LIMITED - Avoid


Issue Details :


Issue opens / closes on
26-04 /02-05-2019
Issue size
24,54,000 equity shares
Face value
Rs 10
Price Band
Rs 63
Business
Trading in agri products
Promoters
R. DARSHAK MAHESH RUPANI, MR. PRASHANTT MAHESH RUPANI AND WHITE ORGANIC AGRO LIMITED
Listing
Bse, sme
BRLM
Finshore Management Services
Registrar
Link Intime

Remarks:

  1. Clash of business interest.
  2. EPS is misleading. (company’s other equity is huge).

IPO ANALYSIS : G.K.P. Printing & Packaging Limited - Avoid


Issue Details :

Issue opens /
closes on
23-04 /26-04-2019
Issue size
20,56,000 equity shares
Face value
Rs 10
Price Band
Rs 32
Business
Mfrs and traders of
corrugated boxes
Promoters
KEVAL HARSHAD GORADIA
AND PAYAL KEVAL GORADIA
Listing
Bse, sme
BRLM
Holani Consultants
Registrar
Link Intime


Remarks:

Limited operational history - less than a year.

Maruti Suzuki India's net declines, stock down 2 percent

Image result for maruti suzuki

 Maruti Suzuki India has reported a 4.6 per cent decline in net profit to Rs 1,795.6 crore for the fourth quarter of the 2018-19 fiscal.

The company had posted a net profit of Rs 1,882 crore in the January-March period of 2017-18.

For the entire 2018-19 fiscal, the company has posted a net profit of Rs 7,500 crore, down 2.9 per cent from the previous fiscal.

The shares of Maruti reacted negatively and ended the day at Rs 6880, down almost 2 percent.

Axis Bank's net at Rs 1505 Cr

Image result for axis bank


 Axis Bank has reported a net profit of Rs 1,505 crore in the March quarter of FY19, as against a loss of Rs 2,189 crore in the same period last year.


Its profit was lower by more than Rs 1,600 crore estimated analysts. The net interest income increased 21% y-o-y to Rs 5,706 crore and its domestic net interest margin stood at 3.61%, up 2 basis points. Axis Bank’s other income, which includes core fee income, rose 26% in March quarter.

The stock closed at Rs 741, down Rs 11 in Thursday's trading.

Tata Steel profit plunges

Image result for tatasteel



Tata Steel's net profit plunged by 84 per cent in the March quarter to Rs 2,295 crore against Rs 14,688 crore logged in the same period last year due to higher operational and finance costs.

Sales were up 24 per cent at Rs 41,186 crore.

The company has announced a dividend of Rs 13 a share on fully paid equity share and Rs 3.25 a share on partly paid equity share. 

The stock closed at Rs 511, in yesterday's trading.

Thursday, April 25, 2019

Neogen Chemicals IPO gets 27% subscription on day 1

Neogen Chemicals IPO has received 27% subscription on day 1. The IPO closes tomorrow.

FirstChoice IPO has avoid call on the offer.

Vodafone rights issue fully subscribed

Vodafone Idea’s Rs 25,000-crore rights offering has garnered full subscription according to sources. 

Wednesday was the last day to apply for the rights offering, which had opened for subscription on April 10. In terms of amount mobilized, the Vodafone Idea rights offering will be among the biggest equity offerings in the Indian markets. 

The rights issue has been priced at Rs 12.5 per share, a discount of 27 per cent over current price of  Vodafone stock. 

Wednesday, April 24, 2019

Softbank to invest in Jio

Japan's Softbank is reportedly looking to make a USD 3 billion investment in India's fastest-growing telecom firm Reliance Jio.

This comes on the back of reports of Saudi giant Aramco in discussions to buy a 25 per cent stake in Reliance Industries' refining and petrochemical business for USD 10 billion. 


Tuesday, April 23, 2019

IPO ANALYSIS : Neogen Chemicals Limited - 'No speciality in the offer' - Avoid

Image result for neogen chemicals


Issue Details :



Issue opens /
closes on


24-04 /26-04-2019
Issue size
Equity Shares comprising of
fresh issue of up to Rs. 700
Million and
OFS of up to 29,00,000
Equity shares.
Face value
Rs 10
Price Band
Rs 212-215
Business
Manufacturers of bromine-
based
and lithium-based,
specialty chemicals.
Promoters
HARIDAS THAKARSHI
KANANI AND
HARIN HARIDAS KANANI
Listing
Bse, Nse
BRLM
Inga Advisors and
Batlivala & Karani Securities
India Private Limited
Registrar
Link Intime


Business :


Company is in to manufacture of specialty organic bromine-based   and other specialty organic chemical compounds and specialty inorganic lithium-based chemicals compounds.
Specialty organic chemical compounds find use in application industries such as pharmaceutical, agrochemical, flavor and fragrance and electronic-chemical.


Lithium Compounds manufactured are used in eco-friendly Vapor Absorption Machines  for cooling air/water/process equipment and find application in industries such as heating ventilation and air-conditioning and refrigeration, construction chemicals, pharmaceutical and specialty polymer.


The company markets their Products in India and as well export  to Europe, USA and Japan.


Objects of the Fresh Issue:


1. Prepayment or repayment of loans.
2. Early redemption of debentures.
3. Long term working capital.
4. General corporate purposes.


Financials : (Rs in crores except EPS)



31-12-2018
(9 months)
31-03-2018
31-03-2017
Revenues
160
165
122
Net profit
12.22
10.49
7.68
Capital
20.10
20
20
Other Equity
41
30
22
EPS
6.09
5.25
3.84


 Risks:
  1. Suit filed by Neogen Corp against the company for using the mark ‘Neogen’.
  2. Promoter and member of promoter group are selling Shares in the Offer.
  3. Debt heavy enterprise.
  4. Company has in the past made erroneous filings with the Registrar of Companies.


Recommendations:


The offer is made around 30 PE on its FY 19 financials, which is is on the higher side. The company is un professionally managed.


Avoid the IPO.