TCS buy back offer : Seeks Sebi's nod

TCS on has filed its draft letter of offer with Securities and Exchange Board of India to buy back its shares for an amount of Rs 16,000 crore. TCS proposes to repurchase 5.61 crore shares at a price of Rs 2,850 apiece and has set March 8, 2017, as the record date to decide eligible shareholders.

 The offer represents 2.85% of the total paid-up equity share capital of the company.

Till recently TCS was the most valued company on Indian bourses, which has been replaced by RIL.

S Chand IPO subscribed 59 times

S Chand IPO which closed for subscription yesterday has been subscribed by 59 times, thanks to non institutional investors. This segment has been subscribed by 205 times.

Hudco sets IPO price band

Hudco has set its price band in the range of Rs 56-60. The IPO opens on May 8th  and closes 11th. Hudco intend to raise around Rs 1200 cr from the primary market.

Fitch upgrades Tata Motors

Fitch Ratings has upgraded Tata Motors’ ratings to BB+ from BB with a stable outlook.

The upgrade of long-term issuer default ratings to BB+ from BB reflects the sustained improvement in its domestic business over the past two years, supported by growing commercial vehicle volumes, successful new product launches in the passenger vehicle segment, and the renewed focus on meeting medium-term capital needs for domestic operations via internal funds, according Fitch.

RBI issues guidelines for CRO in PSU banks

 Reserve Bank of India has prescribed rules for chief risk officer stating that he shall directly report to chief executive officer, managing director, and board panel.

The CRO will not have any reporting relationship with business verticals, nor will he be given any business targets.

S Chand IPO fully subscribed

S Chand IPO has been fully subscribed on Day 1. The IPO has received good response from retail investors segment which has been subscribed by over 2 times. Overall the issue has received 1.96 times subscription.

Paytm launches Digital Gold.

Paytm has announced the launch of ‘Digital Gold’, a vertical to allow its 200-million plus users to buy, store and sell gold instantly. The company sources says that the new scheme is a wealth management product that would be a part of its proposed payments bank.

Short Covering may take Nvidia stock to new highs

Nvidia stock closed above $ 105 in today's trading. There are lot of short positions to be covered in this counter, betting on future declines. Some positive news and short covering  is likely to take the stock to new high. 

Apple's new self driving car is on road

Apple's self-driving technology testbed, an optimized Lexus RX450h SUV bristling with an array of advanced sensors, was spotted driving on Silicon Valley roads on few days, offering the first real-world look at the company's highly secretive autonomous vehicle project. 

 Apple's testbed compares nicely to other self-driving car platforms currently in testing by Google and Uber. Those vehicle systems also include some form of LiDAR, positional sensors and cameras aplenty.

Kotak net raises, stock hit all time high

Kotak Mahindra Bank’s consolidated net profit rose by 33% to Rs 1,404 crore for the January-March 2017 quarter from Rs 1,055 crore a year ago.

Bank's consolidated net profit for the financial year ended March 2017, went up by 43% to Rs 4,940 crore from Rs 3,459 crore in FY16.

The stock closed at Rs 920, up 1.52 percent, all time high,  in yesterday's trading.

QUOTE OF THE DAY

I believe the risks I take are justified by the sheer love of the life I lead.
Charles Lindbergh

Axis Bank posts dismal performance in fy 17

Axis Bank’s net profit declined 43.1% to Rs 1,225 crore for the fourth quarter ended March 2017. 

It had posted net profit of Rs 2,154 crore in January- March 2016.

The net profit for 2016-17 dipped by 55.2% to Rs 3,679 crore from Rs 8,223 crore for 2015-16.

Axis Bank stock closed flat at Rs 517 per share in yesterday's trading.

CCI rules in favour of Biocon

Competition Commission of India has given directions for carrying out a detailed investigation to ascertain if Roche used its dominant position to maintain its monopoly over the breast cancer drug Trastuzumab.  

The order comes as a response to a joint complaint filed by the Mylan and Biocon in 2016 alleging that the Roche Group indulged in abusive conduct.

Wipro's profit at Rs 2267 cr

Wipro's fourth-quarter profits grew 0.4 per cent to Rs 2,267 crore on a 2.6 per cent higher revenue of Rs 13,987 cr.

 For 2016-17, Wipro grew the slowest among its peers. Its IT services revenue grew 4.9 per cent to $7.7 billion.

RBI bats for specialist in PSU banks

Reserve Bank of India  wants public sector banks to create long-term career plans for people in specialised positions.

A currency or bond dealer should remain in the treasury department and progress through that particular vertical, instead of getting transferred across departments.

S Chand and Company raises money from anchor investors

S Chand and Company has raised Rs 219 crore through allotment of 32.62 lakh shares to anchor investors at the upper price band, at Rs 670.

Nomura Trust, HDFC Company, HSBC Global Investment Fund, BNP Paribas Arbitrage, SBI Life Insurance Company are among the anchor investors.

RIL's net profit at Rs 29,901 cr

RIL has reported record annual profits for fy 17, riding high on refining and petrochemicals businesses. For the March quarter, its consolidated net profit rose 12.3 per cent to Rs 8,046 crore, against Rs 7,167 crore for the same period a year ago. 

For the full year, the company reported a consolidated net profit before exceptional items of Rs 29,901 crore, a rise of 18.8 per cent from Rs 25,171 crore last year. 

Reliance Retail's profit soars

Reliance Retail has reported 65.6% increase in profit before depreciation interest and taxes  year-on-year to Rs 366 crore in Q4FY17. For the full year FY17 the PBDIT grew 40.4% to Rs 1,203 crore.

Revenue for Q4FY17 grew 83% year-on-year to Rs 10,332 crore. Revenues for full year FY17 grew by 60.2% year-on-year to Rs 33,765 crore from Rs 21,075 crore. 

Divis lab receives warning letter from USFDA

Divis Laboratories says  that the US health regulator has issued a warning letter to the company for its Vishakhapatnam facility.

USFDA has issued warning letter for the company's Unit-II at Vishakhapatnam.

The company along with external consultants and subject matter experts is working to address the concerns of USFDA and is making all efforts to fully meet the compliance requirements.

InfoBeans IPO subscribed 31 times

InfoBeans Technologies IPO has been subscribed 31 times. The IPO received bids for over 19.85 crore shares as against its offer size of 63.48 lakh shares on Friday, the last day of the offer.

The IPO has been priced at Rs 58 a share.

HDFC Bank's profit soars, stock hit record high

HDFC Bank has reported an 18.3 per cent rise in both its fourth quarter as well as yearly net profit.

Profit for the financial year's fourth quarter ended March was Rs 3,990 crore and for fy 17 it was at Rs 14,550 crore. 

The bank's gross NPAs were at 1.05 percent as on March 31, 2017, as against 1.05 percent as on December 31, 2016 and 0.94 percent in March last year.


The bank’s overall loans grew by 19 percent with domestic loans growing by 24 percent. Within retail; auto, commercial vehicles, credit cards and personal loans grew over 20 percent. 

 The bank’s shares rose 2.4 per cent to close  record high of Rs 1,497.

RIL most valued company

RIL has gained 2 odd percent in early trade and now trading around Rs 1404. At CMP, the company's market cap stands at Rs 4.56 lac cr, slightly higher than TCS's market cap, making it most valued company on the Indian bourses.

Hindustan Zinc posts stellar numbers

Hindustan Zinc  has posted stellar set of numbers for March quarter as its profit grew by 42 percent in Q4 to Rs 3,057 crore against Rs 2,147.2 crore during the same quarter last year.

The company reported a 72.4 percent jump in its total income at Rs 7,237 crore against Rs 4,197.6 crore YoY, while its operating  profit rose to Rs 4,215 crore against Rs 2,049 crore during March quarter last year.

Margin is higher than last year at 58.2 percent against 48.8 percent.

Conduent sues Cognizant

Conduent Inc, a business process outsourcing company has filed a lawsuit against outsourcing major Cognizant  Technology Solutions alleging breach of contract and fraud.

SBI card payment attract charges

SBI Card starts charging Rs 100 on small payments via cheque SBI Card, with over 4 million customers, has started charging Rs 100 for payment through cheque if the amount is up to Rs 2,000 and anything above will attract no fee.

 The fee hike is effective  from April 1. The move, SBI Card said, is aimed at encouraging digital payments in line with the government’s policy. 

FITCH : Time is ripe for PSU banks merger

Rating agency Fitch says more than half the PSU banks would breach at least one of the four thresholds specified by the Reserve Bank of India under its revised “prompt corrective action” (PCA) framework, mainly owing to high non-performing loans.

The credit rating agency feels that the time is ripe for  merger and RBI may use the PCA framework to identify weak banks as candidates for mergers.

The RBI has tightened the thresholds — for capital ratios, NPLs, profitability and leverage — at which banks enter the PCA framework. Fitch underscored that this appears to be an acknowledgement of the significant asset-quality stress in the system and that more banks are in need of regulatory intervention.

BOB ties up with EM3 Agri Services

Bank of Baroda has tied up with EM3 Agri Services to give loan to farmers and rural entrepreneurs for purchase of farm equipment and related machinery. The pact has been signed keeping in mind the government focus on doubling farmers’ incomes by 2022.

The loan service will help create an ecosystem to provide end to end solutions to farmers.

BOB stock gained 2 odd percent in yesterday's trading and closed at Rs 180.

IPO ANALYSIS : S CHAND AND COMPANY LIMITED - AVOID

ISSUE DETAILS:

Issue opens / closes on	26 -04 /28-04-2017
Promoters	DINESH KUMAR JHUNJHNUWALA, MS. NEERJA JHUNJHNUWALA AND MR. HIMANSHU GUPTA
Business	Publishing - predominately education related
ISSUE SIZE	Initial Public offer of Fresh issue of Upto Rs 3,250 Million and offer for sale Upto 6,023,236 Equity Shares
FACE VALUE	Rs 5
PRICE	Rs 660-670
LISTINGS	Bse, Nse
BRLMs	JM Financial Institutional Securities Limited, Axis Capital Limited and Credit Suisse Securities (India) Private Limited
REGISTRAR	Link Intime

Await detailed analysis.

QUOTE OF THE DAY

The solutions to all problems comes from self-awareness.  FirstChoiceIPO.

Nvidia announces partnership with Bosch

Nvidia Corp  has announced partnership with Bosch, the German automotive-parts behemoth. The two will build energy-sipping, next-generation supercomputers for the self-driving cars of the future.

Chief Executive Jen-Hsun Huang invested billions to develop deep-learning algorithms and sophisticated silicon long before it was commercially viable. That vision was vindicated in Drive PX and a seat aboard every new Tesla.

The Bosch deal ups the ante. It pushes Nvidia technology beyond upscale electric cars, into the mainstream.

Nvidia stock closed at $ 101.26 in today's trade, up 2 percent.

Brokerages ups target on Sun tv

Many brokerage houses have upgraded Sun TV stock, from earlier target of Rs 790 to Rs 1000. The stock went up by 5% in yesterday's trading and closed at Rs 844.

Trump's tax reforms take back seat

The much awaited tax overhaul promised by President Donald Trump may be dead before it even got anywhere.

According to Bank of America Merrill Lynch  that the interest rate market is increasingly pricing in the possibility that tax reform will never come to fruition, contrasting with the general belief that Trump is facing a temporary setback in the wake of the failure to repeal and replace Obamacare.

F&O segment to expand by addition of 16 stocks

The NSE is introducing shares of 16 companies for trading in the futures & options segment from April 28.

The shares are Balkrishna Industries, Bajaj Finserv, Balrampur Chini Mills, Berger Paints, CanFin Homes, Cholamandalam Investment & Finance Company, Fortis Healthcare. Godfrey Philips, Gujarat State Fertilizers and Chemicals, Mangalore Refinery & Petrochemicals, Mahanagar Gas, Multi Commodity Exchange of India, NBCC (I), Nestle India, Raymond and V-Guard Industries.

NAL's OFS opens, Invest

NATIONAL ALUMINIUM COLTD
Security Type	OFS
Symbol	NATIONALUM
Issue Period	19 Apr 2017 to 20 Apr 2017
	/April 19, 2017 for Non Retail Investors and April 20 ,2017 for Retail Investors and Non Retail Investors who choose to carry forward their bids
StartTime	09:15
EndTime	15:30
Offer Size – No. of Shares	9,66,46,444
	With an additional option to sell up to 9,66,46,444 equity shares (Oversubscription option)
Offer Size for Retail Investors	3,56,13,986
	Base Offer Size - 19329289 and Oversubscription Option - 16284697.Cut off Price for RIC Bids has been fixed at Rs 67 based on the clearing price of Non Retail Bidding
Offer Size for Non Retail Investors	7,73,17,155
	With an additional option to sell up to 7,73,17,155 equity shares (Oversubscription option).The Seller/Promoter will intimate the Exchange of its intention to exercise the Oversubscription (additional issue size) after trading hours (i.e. on or before 6.00 PM) on T day
Face Value	5.00
Floor Price	67.00
Lot Size	1
Tick Price	0.05
ISIN No	INE139A01034
Minimum Bid Quantity	1
Maximum Bid Quantity	9,66,46,444
	With an additional option up to 9,66,46,444 equity shares (Oversubscription Option)

Tree House promoter goes missing.

Rajesh Bhatia, Managing Director and Promoter of the beleaguered Tree House Education, has been absconding for over a week with Mumbai Police’s Economic Offence Wing hot on his heels.

 Share price of Tree House has fallen by 75 percent. The price has tanked to Rs 20 now from Rs 80 in April last year.

While analysing the IPO in 2011, this is what we wrote :

MATTERS OF CONCERN:

1. Limited business history, operations started in 2008.

2.As of now this segment is unregulated. Government may regulate this segment in future, similarly, as was done in case of Micro Finance Institutions. It depends on the business ethics, greediness of the promoters or otherwise.

3.There are debtors outstanding for more than 180 days, which raises genuineness of the revenue earned.

4.RONW in the last 3 years is less than 6%.

5.There are corporate governance issues – company has delayed the income tax payments and other statutory dues.

RBI directs banks to make 25% provisions on Jaiprakash Associate loans

 Reserve Bank of India has asked banks to make 25 percent provisions against their exposure to the debt-laden construction and cement enterprise Jaiprakash Associates, Jaypee Group's flagship company.

Jaiprakash Associates was grappling with a consolidated debt of about Rs 58,250 crore as of March 31, 2016, which is more than what the group can service,

The country’s largest bank, State Bank of India, and biggest private sector lender, ICICI Bank, are among the major lenders to Jaiprakash Associates.

The stock closed flat at Rs 12, in yesterday's trading.

S Chand and Company sets IPO price

S Chand and Company has fixed a price band of Rs 660–670 per shares for its initial public offering opening on April 26, closes on 28.

The IPO comprises fresh issuance of shares worth Rs 325 crore and an offer for sale of 6,023,236 scrips by the existing shareholders. 

Bse changes circuit filter for 6 stocks

Bse has changed the circuit filter for the following stocks with effect from April 20, 2017.

Sr. No.	Scrip Code	Scrip Name	Price
1	535917	GCM Commodity & Derivatives Ltd	10
2	539229	Majestic Research Services and Solutions Ltd	10
3	500402	SPML Infra Ltd	10
4	506597	Amal Ltd	5
5	538570	Achal Investments Ltd	2
6	517481	Artech Power Products Ltd	2

Yes Bank profit raises in q 4

Yes Bank has posted Rs 914 cr net profit in q4 and Rs 3340 cr for fy 17. For fy 16 the bank earned a net profit of Rs 2530 cr. EPS for fy 17 stood at Rs 77 as against Rs 59 reported in fy 16. The stock closed flat at Rs 1605, in yesterday's trading.

Other key highlights :

 Total Assets crossed ` 2,15,000 Crores; IBU Gift City Total Assets of over USD 1 Bn.
 Branches at 1,000 and employee count in excess of 20,000. Significant traction in Retail businesses with CASA ratio crossing 35% to 36.3%; CASA + Retail TDs crossing 60%; 

Core Retail Advances growth in excess of 100% with increasing share of fees from Retail businesses.


 Raised ` 4,906.65 Crores (USD 750 Mn) through QIP, Largest Private Sector QIP in INR term.

Further raised ` 3,000 Crores (~USD 450 Mn) through Basel III AT1 bonds, rated AA by CARE, ICRA and India Ratings.

During FY17 aggregate capital raise of USD 1.2 Bn (~USD 1.6 Bn including retained earnings).

 Established Market Leadership in UPI applications for enabling Merchant payments with a market share of 30%.

 Total Net Income of ` 2,897.1 Crores in Q4FY17 y-o-y growth of 41.7%. Total Net Income grew by 36.8% in FY17 to ` 9,954.1 Crores.

 Net Interest Income of ` 1,639.7 Crores for Q4FY17; y-o-y growth of 32.1%. For FY17, NII increased by 26.9% to ` 5,797.3 Crores on back of growth in Advances & CASA and expansion in NIM.


 NIM expanded to 3.6% for Q4FY17 from 3.5% in Q3FY17. NIM stands at 3.4% for FY17.

 Healthy return ratios with RoA at 1.8% and RoE at 21.8% in Q4FY17. For FY17, RoA expanded to 1.8% from 1.7% for FY16 and RoE increased to 21.5% from 19.9% for FY16.

 Book Value stands at ` 468.7 per share.

 CASA ratio at 36.3%, 8.2% increase in FY17 on the back of 65.5% growth y-o-y. SA and CA deposits posted strong growth of 60.6% and 74.7% respectively.


 Advances grew by 34.7% to ` 1,32,262.7 Crores as at Mar 31, 2017 of which Core Retail grew by 140% on the back of robust growth in both Corporate and Retail engines.

 Total Capital Adequacy as per Basel III is robust at 17.0% with Tier I ratio at 13.3% and CET I Ratio at 11.4%. Shareholders Fund at ` 22,054.1 Crores and Total Capital Funds at `31,731.2 Crores as of Mar 31, 2017.

Indusind Bank posts Rs 750 cr nrt in q4

Indusind Bank has posted Rs 750 cr net profit in q4 and Rs 2868 cr for fy 17. For fy 16 the bank earned a net profit of Rs 2286 cr. EPs for fy 17 stood at Rs 48 as against Rs 38 reported in fy 16. The stock closed at Rs 1422, down Rs 9 in yesterday's trading.

UB group shares may come under pressure

Stocks of UB group may come under pressure in today's trade after what happened in London last evening. 

Tech companies are trading at lowest PE

The price to earnings multiple of top-listed IT companies has hit a nine-year low, only a little better than the previous record low in March 2009.  The 29 listed IT companies that are part of BSE 500, BSE mid-cap and BSE small-cap index are now trading at 16 times their trailing 12-month net profits, down from 19 times a year ago. The sector had hit a trough during the post-Lehman crisis sell-off when the valuation reached an all-time low of 11x at the end of March 2009. 

Tata Steel to settle pensioners dues

Tata Steel is planning to settle its dispute with pensioners by making one time payment of $ 663 million.   This is under a new scheme called the Regulated Appointment Arrangement (RAA). Tata Steel is finalising the terms with the British Regulator in this regard.

RBI advises banks to make more provisions for stressed sector loans

RBI has advised that the provisioning rates prescribed in the abovementioned circular are the regulatory minimum and banks are encouraged to make provisions at higher rates in respect of advances to stressed sectors of the economy. With a view to ensure that banks have adequate provisions for loans and advances at all times, it is advised as under:


i) Banks shall put in place a Board–approved policy for making provisions for
standard assets at rates higher than the regulatory minimum, based on
evaluation of risk and stress in various sectors.

ii) The policy shall require a review, at least on a quarterly basis, of the
performance of various sectors of the economy to which the bank has an
exposure to evaluate the present and emerging risks and stress therein. The
review may include quantitative and qualitative aspects like debt-equity ratio,
interest coverage ratio, profit margins, ratings upgrade to downgrade ratio,
sectoral non-performing assets/stressed assets, industry performance and
outlook, legal/ regulatory issues faced by the sector, etc. The reviews may
also include sector specific parameters.

iii) More immediately, as the telecom sector is reporting stressed financial
conditions, and presently interest coverage ratio for the sector is less than
one, Board of Directors of the banks may review the telecom sector latest by 
2 June 30, 2017, and consider making provisions for standard assets in this
sector at higher rates so that necessary resilience is built in the balance
sheets should the stress reflect on the quality of exposure to the sector at a
future date. Besides, banks should also subject the exposure to the sector to
closer monitoring.

FIIs net sell for Rs 931 cr

FIIs have net sold for Rs 931 cr in cash market, where as DIIs have net bought for Rs 878 cr in the same segment. Nifty closed at 9105, down 34 points in yesterday's trading.

IMF : India to grow at 6.8 percent

India’s economic growth will be 6.8 per cent in 2016-17 as per latest estimate by IMF.

QUOTE OF THE DAY

Don’t be afraid to fail. Greatness lies in the vast space of uncertainty. Take a chance.
Richard Bronson

Chris Gayle creates history

Chris Gayle today became the first cricketer to score 10,000 runs in T20 cricket during the IPL match between his side Royal Challengers Bangalore and Gujarat.

Gayle, who came into the match with just three runs short of the landmark, reached to it when he took a single off Lions pacer Basil Thampi in the fourth over of the RCB innings. He went on to score a characteristic 38-ball 77 in his 290th Twenty20 match to tally to 10,074 runs.

RCB won the match against Gujarat Lions by 21 runs.

IPO ANALYSIS : INFOBEANS TECHNOLOGIES LIMITED - INVEST

ISSUE DETAILS:

Issue opens / closes on	18-04 /21-04-2017
Promoters	Siddharth Sethi,  Avinash Sethi and Mitesh Bohra
Business	IT / ITeS
ISSUE SIZE	63,42,000 equity shares
FACE VALUE	Rs 10
PRICE	RS 58
LISTINGS	NSE SME
BRLMs	Sarthi Capital
REGISTRAR	Link Intime

EPS for the last 3 years.

March 31, 2014 4.10
March 31, 2015 3.14
March 31, 2016 7.44

H-1 B Visa lottery system to go, visa on merit

US administration is planning to do away with H-1B lottery system end and a new program with an emphasis on master’s degrees and high skills is likely to be enforced.

The switch away from a random lottery system in which it's weighted toward the lowest wage workers towards a system that prioritizes higher-skilled, higher-paid workers, which would make it much more difficult to use it to replace American workers. 

India Bulls Real Estate stock faces NSE probe

National Stock Exchange is probing the trades in equity derivatives of Indiabulls Real Estate following the huge swings in price in the last couple of trading sessions. 

On Monday, the Indiabulls Real Estate stock surged more than 40 percent after the company announced that it was restructuring operations by separating the residential and commercial businesses.

TCS reports subdued numbers in q4

TCS reported 4.2 percent year-on-year growth in the net profit to Rs 6,608 crore for the quarter ended March 31. The net profit fell 2.5 percent on quarter-on-quarter  basis.

The rupee revenue grew 4.3 percent on a YoY basis to Rs 29,642 crore for the quarter ended March 31.  The dollar revenue for the quarter came at $ 4452 million. 

For the FY 17, the company's revenue stood at Rs 1.18 lac cr, as against Rs 1.08 lac cr in the previous year.  Net profit Rs 26,357 cr as against Rs 24,388 cr in FY16. EPS for fy 17 stood at Rs 133 and it was Rs 123 in fy 16.

USFDA woes continues for Sunpharma

Sun Pharmaceutical Industries share price fell 3 percent intraday and closed at Rs 675 in yesterday's trading, as investors turned cautious. The company's Dadra unit has received 11 observations from the US FDA. 

The nature of the observations served by US FDA is not clear, according to sources. Inspection of the plant by USFDA was concluded in the last week.

Dadra site is the biggest unit after Halol for Sun Pharma for US supplies.

India Bulls Real Estate raises 42%, volumes surge

India Bulls Real Estate gained 42% in yesterday's trading with huge volumes. The stock opened at Rs 108, touched a low of Rs 103, and touched 52 week high of  RS 151, before closing at Rs 148. The stock witnessed trading volume of 20 plus crore shares. However, delivery percentage was very low at 9.79%, indicating the surge was more of speculative in nature rather value buying.