Morgan Stanley bullish on RIL, ups target

Investment cum brokerage firm Morgan Stanley is bullish on RIL and has raised its target price from Rs 1280 to Rs 1510.  It has factored  higher energy earnings and increased clarity on telecom investments and returns.
RIL gained Rs Rs 57 and closed at Rs 1237 in yesterday's trading.

Flurry of IPOs to hit market in March

March month will see 5-6 IPOs hitting the street. That includes Avenue Super markets, CSDL, Music Broadcast, Shankara Building Products and C L Educate.

OPG securities faces SEBI's heat

 Securities and Exchange board of India's  surveillance team has conducted a special inspection of the books of the Delhi- based technology firm OPG securities to check if it got unfair access to National Stock Exchange's co - location server.

Nvidia surges 3 percent

Nvidia gained 3 percent in today's trade. The stock had fallen 7 percent last week, after Nomura had downgraded the stock. Now analysts expect the company to report good numbers in q1 of FY17. 
The stock closed at $ 104.41 in today's trading.

RIL market cap crosses Rs 4 lac crore

RIL stock is up 5 odd percent in the early trade. The stock is trading around Rs 1249. The market cap of the company has crossed Rs 4 lac cr mark.

IPO Analysis : RMC SWITCHGEARS LIMITED - Avoid

ISSUE DETAILS:

Issue opens / closes on	28-02 / 03-03-2017
Promoters	Ashok Kumar  Agarwal, Ankit Kumar Agarwal and Neha Agarwal
Business	Mfrs of enclosures for energy meters
ISSUE SIZE	15,36, 000 equity shares
FACE VALUE	Rs 10
PRICE Band	Rs 27
LISTINGS	Bse sme
BRLMs	Hem securities
REGISTRAR	Link Intime

IPO Analysis : Music Broadcast

ISSUE DETAILS:

Issue opens / closes on	06-03/08-03-20117
Promoters	Jagran Prakashan
Business	Radio broadcasting
ISSUE SIZE	Rs 400 cr
FACE VALUE	Rs 10
PRICE Band	Rs 324 - 333
LISTINGS	bse,nse
BRLMs	ICICI sec
REGISTRAR	Karvy

Business:

Music Broadcast's Radio City is the first private FM radio station in India.  The presence radio stations have increased from four cities in 2001 to 37 cities as on February 15, 2017. At  present Rado city is in 12 out of the top 15 cities in India by population.


Objects of the offer:

The Offer consists of a Fresh Issue by the Company and an Offer for Sale by the Selling Shareholders.

 Proceeds received from fresh issue of equity will be utilised for :

 Redemption of Listed NCDs and ICDs.



Risks:

Advertisement is the main source of income and the company is  heavily dependent on continuous flow of advertisements at effective rates.

 Rely on third parties to source sound recordings that are broadcasted on their radio stations.

Change in Government’s policy on cross media ownership could have adverse implications.



           Financials:

For the six month period ended on September 30, 2016, the company generated a total revenue of Rs 138 cr, EBITDA of Rs 45 cr and net profit of Rs 29 cr.


For the fiscal year ended March 31, 2016, we generated a total revenue of Rs 245 cr, EBITDA of Rs 78 cr and net profit of Rs 42 cr.

EPS for the last 3 years:


March 31, 2014 5.80
March 31, 2015 11.23
March 31, 2016 9.95

Weighted average EPS 9.69

Six month period ended on September 30, 2016 (not annualised) Rs 6.61.
     

7 airports exempted from security tag stamp

Civil aviation ministry  has decided to do away with security stamp on hand baggage tags at seven airports but CISF officials say the force may not be able to undertake the directive on an immediate basis. 

The seven airports are those at Delhi, Mumbai, Kolkata, Bengaluru, Hyderabad, Ahmedabad, and Cochin.

Nomura reduces Nvidia target, firstchoiceipo thinks otherwise.

Investment cum broking firm Nomura has  lowered its  recommendation on the Nvidia stock from buy to reduce, a multi-notch downgrade. The Nomura analyst reduced his price target on NVIDIA shares from $100 to $90.

From where the stock is trading during Wednesday's after-hours session, Nomura's new price target represented potential downside of about 17 percent.

FirstChoiceIPO thinks otherwise on Nvidia stock. Nvidia has many launches in FY 17 including GTX 1080 Ti.

Tokyo Institute of Technology has recently announced its plans to create Japan’s fastest AI supercomputer, built on NVIDIA’s accelerated computing platform.

Nvidia in early Jan has launched new Shield with Google Assistant, self-driving car system and cloud gaming service.

 Revenues from these segment will be reflected in second / third quarter of current fiscal.

We have hold recommendations on Nvidia with a medium target of $ 130.

IPO Analysis : Akash Infra-Projects Limited - Avoid

ISSUE DETAILS:

Issue opens / closes on	28-02 / 06-03-2017
Promoters	YOGI KUMAR H PATEL AND Mr. AMBUSINH P GOL
Business	Civil constructions / construction of roads
ISSUE SIZE	PUBLIC ISSUE OF 20,40,000 EQUITY SHARES
FACE VALUE	Rs 10
PRICE Band	Rs 125
LISTINGS	Nse- Emerge
BRLMs	Tipsons Consultancy Services Private Limited
REGISTRAR	Purva Sharegistry (India) Pvt. Ltd.

IMF does U turn note ban

IMF which had hailed note ban initially has made a U turn, by indicating that note ban has hurt the economy and says that growth will come down below 6 percent in FY18.

RIL's market cap surges near Rs 4 lac crore

RIL stock has gained 8 odd percent as of now and trading at Rs 1183. The market cap stands at Rs 3.84 lac crores. The stock has gained more than 16% in the last 30 days.

QUOTE OF THE DAY

Passion will keep you going when the going gets tough.

David Copperfield.

Canara bank appoints SBI Caps to lead manage its rights offer

Canara Bank has appointed SBI Capital Markets as it sole lead manager for rights issue which opens on 2nd March.

 The bank is issuing 5,42,99,105 equity shares of Rs 10 FV at a price of Rs 207, amounting to Rs 1124 cr.

Rights in the ratio of 1 for every 10 shares held. The offer closes on 16-03-2017.

Karvy Computershare pvt limited are the registrar to the issue.

JSPL surges despite reporting loss

JSPL  has posted a net  loss of associates of Rs. (407 cr) for the quarter ended December 31, 2016 as compared to net loss of Rs. (869 cr) for the quarter ended December 31, 2015. 

The stock was trading around Rs 88, on the day of result. Since then it is moving only in one direction. From Rs 88 to Rs 110, in 5 trading sessions. After touching 110 in today's trade, the stock as of  now trading around Rs 108.

Reliance Jio ties up with Uber

 Reliance Jio Infocomm  has tied up with Uber. For Uber this will make RJio as its  largest merchant partner in the country.

 Uber and Reliance Jio strategic partnership  will allow users of the Uber  services to  pay for rides using Jio Money. In addition, users of Jio Money will have the option of  booking a ride on Uber from within the app.

TCS buy back offer at Rs 2850

TCS  board  has approved buyback at Rs2,850 per share, which is at a premium of around 18% to its Friday's close of Rs 2,407 per share.

It will cost Tata Consultancy Services over Rs 16,000 crore. TCS intend to buy  2.85%, equity shares on a proportionate basis. 

TCS gained  4% in yesterday's trading and closed at Rs 2505.

Forthcoming IPO : BHARAT ROAD NETWORK LIMITED

ISSUE DETAILS:

Promoters	SREI INFRASTRUCTURE FINANCE LIMITED AND MAKE IN INDIA FUND
Business	Road BOT company
ISSUE SIZE	29,300,000 EQUITY SHARES
FACE VALUE	Rs 10
PRICE Band	--
LISTINGS	BSE, NSE
BRLMs	Inhga Capital, Investec Capita, Srei Capital Markets
REGISTRAR	Karvy

Saudi legislation to hit Indian workers hard

Recently US  introduced a legislation  to more than double the minimum salary of H-1B visa holders from the current figure of $60,000 to $130,000. The move is a bid to stop American firms from hiring less expensive foreign labour, including from India.


Now, Saudi Arabia,  where about 3 million Indians live and work and send home about $11 billion in remittances to India, of the total $70 billion from around the world,  has newly introduced value-added tax could increase the cost of living in the hitherto tax-free country, leaving fewer savings for Indians to send home.

IPO News : IRB InvIT Fund receives sebi's nod

IRB InvIT Fund, has received  Securities and Exchange Board of India's approval to raise Rs 4,300 crore through initial public offering.

McKinsey & Company : Gloomy outlook for services tech giants

Indian IT services players may have to re-skill significant chunks of their workforce to drive the digital technology transformation. 

Global advisory firm McKinsey & Company says in a report, which was presented at the Nasscom India Leadership Forum on Friday, nearly half of the workforce in the IT services firms will be “irrelevant” over the next 3-4 years. 

The report has suggested that IT services providers must turn around their businesses in five major ways such as explosion of new service lines and solutions, investment to build new capabilities, coexistence of digital transformation and traditional services, acquisitions and re-skilling employees with emerging technologies. 

IPO News : Bharat Road Net Works to raise Rs 1200 cr

Bharat Road Network has filed papers with SEBI with for its initial public offering.The offer consists of issuing  29,300,000 equity shares having a face value of Rs 10 each. The issue size is estimated to be around Rs 1,200 crore.

BRNL is a road BOT company, focused on development, implementation, operation and maintenance of roads and highways project.

SREI has financial stake in the company.

SBI associate banks to offer VRS scheme

SBI's five associate banks will offer voluntary retirement schemes (VRS) for their employees before the merger comes into effect. State Bank of Bikaner and Jaipur, State Bank of Hyderabad , State Bank of Mysore, State Bank of Patiala and State Bank of Travancore  are in the process of  seeking  their respective boards approval in this regard.

HDFC Bank replaces RIL as second most valued company

HDFC Bank has replaced RIL as second most valued company on the Indian bourses. HDFC Bank gained Rs 49 in yesterday's trade and closed at Rs 1377. Its market cap stands at Rs 3.52 lac crore, as against RIL's Rs 3.49 lac crore. TCS is the most valued company with a market cap of Rs 4.74 lac crore.

Payment wallet not viable - Aditya Puri

HDFC Bank's CEO Aditya Puri says that Payment wallet is not viable in the long term. For a wallet to be operational you have to transfer money from your bank to the wallet. He thinks wallets have no future. There is not enough margin in the payment business for the wallets to have a future, Puri, said at the annual Nasscom India Leadership Forum (NILF) in Mumbai.

We, at FirstChoice IPO, fully agree with the views of Puri.

Vardhaman Special Steels files papers for rights issue

Vardhaman Special Steels has filed papers with SEBI for rights issue. The company intends to offer 1,35,70,000  equity shares of Rs 10 FV at a price of Rs 50 each, aggregating to Rs 67.85cr. Rights in the ratio of 2 shares for every 3 shares held.

Midcaps which have given 100% return in the last one year.

The benchmark indices , Sensex and NIFTY has risen by 24% in the last one year, whereas the following 7 stocks have given more than 100% return during the same period.

Sl no	Name of the company	CMP	Industry / Segment
1	Century Textile	904	Textile
2	L&T Finance Holdings	111	Finance
3	IGL	1060	Energy
4	Biocon	1064	Pharma
5	CESE	850	Power utility
6	Sun TV	722	Media
7	Tata Communications	731	Telecom /IT

Forthcoming IPO : SALASAR TECHNO ENGINEERING LIMITED

ISSUE DETAILS:

Promoters	Gyanendra Kumar Agarwal, Alok Kumar, Shalabh Agarwal and Ms. Tripti Gupta
Business	Steel fabrication / infra solutions
ISSUE SIZE	33,21,000 equity shares
FACE VALUE	Rs 10
PRICE (Fixed)	Rs 108
LISTINGS	Bse, Nse
BRLMs	Sarthi Capital
REGISTRAR	Big Share