Tuesday, January 31, 2017

ICICI bank reports dismal numbers

ICICI Bank has posted a net profit of Rs. 2611 cr for the quarter ended December 31, 2016 as compared to Rs. 3122 cr for the quarter ended December 31, 2015. 

Total Income has increased from Rs. 25585 cr for the quarter ended December 31, 2015 to Rs. 27876 cr. for the quarter ended December 31, 2016.

Monday, January 30, 2017

Tech Mahindra beats estimate in q3

Tech Mahindra has posted a net profit of Rs. 845 cr for the quarter ended December 31, 2016 as compared to Rs. 759 cr for the quarter ended December 31, 2015. 

Total Income has increased from Rs. 6763 cr for the quarter ended December 31, 2015 to Rs. 7713 cr.80 for the quarter ended December 31, 2016.

The stock closed ta Rs 472, up Rs 5 in today's trading.

RBI removes restriction on withdrawals

Reserve Bank of India has removed the cash withdrawal restriction on current, overdraft accounts immediately.

Restrictions on withdrawal of Rs 24,000 a week from savings bank account will continue for now and will be reviewed later.

Srei Infrastructure Finance Limited to raise Rs 200 cr through NCD



SeriesS1- Payable at redemption - Rs. 1,094/- Tenor 400 days, for Category I, II and III Investors
S2- 8.50% Tenor - 400 days, for Category I, II and III Investors-Annual Option
S3 - 8.88% Tenor - 3 years, for Category I, II and III Investors-Monthly Option
S4 - 9.25% Tenor - 3 years, for Category I, II and III Investors-Annual Option
S5 - Payable at redemption ? Rs. 1,304/- Tenor 3 years, for Category I, II and III Investors
S6 - 9.12% Tenor - 5 years for Category I, II and III Investors-Monthly Option
S7 - 9.50% Tenor - 5 years for Category I, II and III Investors-Annual Option
S8 - Payable at redemption ? Rs. 1,575/- Tenor 5 years, for Category I, II and III Investors
Issue Period30-Jan-2017 to 23-Feb-2017
Post issue Modification Period27-Feb-2017
Issue SizePublic issue of Rs 2,000 Million (?Base Issue Size?) with an option to retain oversubscription upto Rs. 5,066.36 Million aggregating upto Rs. 7066.36 Million
Security TypeSecured Redeemable Non-Convertible Debentures
PriceRs 1000
Face ValueRs 1000
Market Lot1 (one) Bond
Minimum Application Value10 (Ten) NCDs (Rs. 10,000) either taken individually or collectively across all series of NCDs
IPO GradingBWR AA+ (BWR Double A plus) by Brickwork Ratings India Private Limited
Rating AgencyBrickwork Ratings India Private Limited

NSE to conduct mock trading on 04-02-2017

NSE will conduct Mock trading on Saturday, February 04, 2017, in capital market segment, as per the following schedule: 

Saturday, February 04, 2017 
Start Time End Time Pre Open 10:00 hrs 10:08 hrs 
Normal Market 10:15 hrs 15:30 hrs 
Call Auction Illiquid session (5 sessions of 1 hour each) 10:30 hrs 15:30 hrs 
Auction Market 14:00 hrs 15:15 hrs Closing Session 15:40 hrs 15:50 hrs 
Re-Login time 17:30 hrs 18:00 hrs

HDFC unaffected by demonetization

HDFC has reported a 13 per cent increase in consolidated net profit at Rs 2,729 crore for the third quarter ended December.

Profit for October-December in the previous financial year stood at Rs 2,419 crore.

Its total income has gone up to Rs 14,981 crore for the quarter ended December 31, from Rs 12,254 crore for the quarter ended December 31, 2015.

The stock closed flat at Rs 1369,in today's trading.

Starbucks takes Trump head on

Starbucks  will hire 10,000 refugees over the next five years, a response to President Donald Trump's indefinite suspension of Syrian refugees and temporary travel bans that apply to six other Muslim-majority nations.

Voda to go for reverse merger with Idea

Vodafone is in talks with  Aditya Birla group's Idea Cellular for merger.  On this news Idea stock is up 28% and Bharti Airtel more than 10% as of now.

If the merger materializes  Voda will become the biggest player in telecom sector in India. 

Saturday, January 28, 2017

L&T's net jumps by 39%

L&T's total income from operations rose to Rs 26,286.98 crore during the  Dec quarter, as against Rs 25,928.07 crore a year ago.

 Its net profit stood at Rs 972 crore for the December quarter as against a net profit of Rs 700.34 crore for October-December last financial year.

L&T stock closed at Rs 1443 in Friday's closing.

Friday, January 27, 2017

Modi's magic on the wane

Modi and BJP made tall promises in 2014 LS manifesto. Most of them remain on paper. The first comes to the mind is black money stashed outside India. Biggest failure, not even a rupee has come back. 

Promised moon to the farmers. More than 25,000 farmers have died in the last 2 years, highest since independence. Farmers plight in the country continues to be pathetic. 

The government has failed in taming inflation too. Corruption free India. Corruption stay put where it was in 2014. 

Unemployment continues to rise, no concrete efforts have been made to generate employment. In fact more people have lost jobs due to demonetization, particularly in informal and unorganised sector. 

Demonetization has failed to deliver the desired results.

One more big promise was houses for all, a look at the slums in cities will tell whether the government promises has been implemented or not, leave alone villages. They are the last priority.

BJP has been telling we will build Ram Mandir at ayodhya for the last 25 years. BJP rakes up the slogan of Ram mandir during election time and forgets it after that.

People gave a clear mandate to BJP in 2014 hoping for better days and voters appears to have disillusioned.

Modi magic that worked in 2014 may not work this time. 

BJP-SAD is going to fare very badly in Punjab, they have 50:50 chance UP, Akhilesh having the edge. Results of Goa, Uttarakhand and Manipur are not so significant to national politics.

Alibaba eyes MoneyGram

 Ecommerce giant Alibaba has reached an agreement to acquire American money-transfer major MoneyGram for $880 million, in a deal that will expand the firm's business in the US after India and Thailand.

Note ban hits Ashok Leyland in q3

Ashok Leyland has posted a net profit of Rs. 186 cr for the quarter ended December 31, 2016 as compared to Rs. 213 cr for the quarter ended December 31, 2015. 

Total Income has increased from Rs. 4396 cr. for the quarter ended December 31, 2015 to Rs. 4747 cr for the quarter ended December 31, 2016.

Q4 result : Google needs fresh directions

 Alphabet Inc, the holding company of Google has  posted fourth-quarter profit below analysts' estimates. This has raised the concerns that growth in the company's powerhouse advertising business may be slowing.

The company posted a 22.2 per cent increase in quarterly revenue as advertisers spent more to reach an expanding user base that spends more time on smartphones and YouTube.

Google's ad revenue rose to 17.4 per cent to $22.40 billion in the fourth quarter.

The company's consolidated revenue rose to $26.06 billion above the average estimate of $25.26 billion.

Intraday the shares of the company slipped to $834 before  at $857 on Nasdaq. After market hours the stock is down 2 odd percent.

PM exposes himself

 Prime Minister Narendra Modi during an election campaign in Oct 2014 had said that  NCP means "Naturally Corrupt Party" even as its chief Sharad Pawar said he was undermining the dignity of the PM's post by making "personal attacks".

With just one day left for the assembly poll campaign to end in Maharashtra, the war of words among the rival parties was getting shriller as they went all out to woo voters.

Now for the chief of Naturally Corrupt Party, Modi sarkar has cleared Padma bhushan award. 

Thursday, January 26, 2017

Dr Reddy's sued by South Korea company

South Korea based biotech company Mezzion Pharma has filed a suit against Dr Reddy’s Laboratories in a US court. It has alleged the Hyderabad-based supplier had committed fraud by hiding significant deficiencies in the Current Good Manufacturing Practice, or CGMP, regulations enforced by the US health regulator.  

Subprime crisis still haunts RBS

Royal Bank of Scotland will take another financial hit when it sets aside a further $4bn  for fines.

It has now put nearly $10bn in the kitty to pay a monster fine to the US Department of Justice.

It relates to the bank's role in the selling of risky mortgages - the so called subprime crisis - which was at the epicentre of the financial crisis.

This will plunge RBS, 72% owned by the public, further into the red.

United Spirits fiasco : Sebi bars Mallya, 6 others

  SEBI has restrained the following persons from accessing the securities market and     are further prohibited from buying, selling or otherwise dealing in securities in any manner whatsoever, either directly or indirectly:

 1. DR. VIJAY MALLYA 
 2. ASHOK CAPOOR 
 3. P.A. MURALI 
 4. SOWMIYA NARAYANAN 
 5. S.N. PRASAD 
 6. PARAMJIT SINGH GILL 
 7. AINAPUR S. R. 

International index of corruption : India is at 40th place.

The annual index of Transparency International issued on Wednesday for 2016 placed India with Brazil and China in the 40th position.

 A major international index of corruption and transparency has placed India on the watch list for its inability to curb mega corruption scandals and petty bribery. The annual index of Transparency International issued on Wednesday for 2016 placed India with Brazil and China in the 40th position. India’s condition showed growth with inequality, it said.

“India’s ongoing poor performance with a score of 40 reiterates the state’s inability to effectively deal with petty corruption and large-scale corruption scandals,” said Transparency International. The impact of corruption on poverty, illiteracy and policy brutality showed that not only was the economy growing but so was inequality.

India’s current ranking, putting it in the high corruption zone, has drawn critical observations from transparency campaigners. Nikhil Dey of People’s Campaign for Right to Information said the government of Prime Minister Narendra Modi had not done enough on the issue of Lokpal and whistleblower protection.

Wednesday, January 25, 2017

FIIs net buys for more than Rs 1300 cr

FIIs have net bought for Rs 1379 cr in cash market, whereas DII's have bought to the extent of Rs 383 cr. Sensex gained  333  and Nifty 127 points in today's trade. The rally was led by bank, auto, FMCG, energy and financial services stocks. Pharma, tech and realty stocks were subdued in the trade.

Chinese daily says demonetization a big failure

India’s demonetization drive is “a big failure” and has put the Indian economy back by at least a decade, an influential Chinese daily said on Wednesday. 

Prime Minister Narendra Modi’s November 8 announcement to scrap Rs 1,000 and Rs 500 notes was akin to “promising homeless people houses on Mars in one month’s time”, an op-ed in the Global Times said.

“The demonetization … has turned out to be a big failure,” it said. “This fa├žade of demonetization is like promising homeless people houses on Mars in one month’s time.

“Unfortunately, the reality is that demonetization has put the Indian economy back by at least a decade, leading to job losses,” the newspaper said.

BSE IPO subscribed more than 50 times

BSE IPO has been subscribed by more than 50 times on the last day.

Maruti's net up by 47% in q3

Maruti Suzuki has posted a net profit of Rs. 1744 cr for the quarter ended December 31, 2016 as compared to Rs. 1183 cr for the quarter ended December 31, 2015. 

The total income has increased from Rs. 17200 cr for the quarter ended December 31, 2015 to Rs. 19765 cr for the quarter ended December 31, 2016.

The stock is trading around Rs 5760, up Rs 20, as of now.

Kotak mahindra bank up 4% on good q3 numbers

The bank has posted a profit of Rs. 1267 cr for the quarter ended December 31, 2016 as compared to Rs. 945 cr for the quarter ended December 31, 2015. 

The total income has increased from Rs. 6950 cr for the quarter ended December 31, 2015 to Rs. 7670 cr for the quarter ended December 31, 2016.

The stock is up 4% as of now and trading around Rs 771.

Bharat Financials loan disbursement down in q3

Bharat Financial Inclusion's Profit stood at Rs. 143 crore in Q3-FY17 and Rs. 428 crore for 9M-FY17.

In Q3-FY17, the Company registered Loan disbursements of Rs. 2,981 crore -- 34% year-on-year growth to Rs. 10,765 crore in 9M-FY17 (Rs. 8,022 crore in 9M-FY16). The collection efficiency for the dues in the November 11-30, 2016 period improved to 97.5% by January 19, 2017.

 Overall collection efficiency for Q3-FY17 was 95%. The Company also originated Rs. 226 crore and Rs. 835 crore loans under managed portfolio in Q3-FY17 and 9MFY17 respectively.

 Bharat Financial Inclusion Limited’s marginal cost of borrowing remained stable at 10%.

Biocon net soars in q3

Biocon has posted a net profit of Rs. 171 cr for the quarter ended December 31, 2016 as compared to Rs. 104 cr for the quarter ended December 31, 2015. 

The total income has increased from Rs. 829 cr for the quarter ended December 31, 2015 to Rs. 1092 cr for the quarter ended December 31, 2016.

The results were announced after market hours and the stock will react positively to the q3 numbers in today's trading. Yesterday it closed flat at Rs 998.

Bhushan steel : takeover target

 JSW Steel has submitted a bid of Rs 25,000 crore to banks for the debt-laden Bhushan Steel.  Sources close to the development indicated the deal would include taking over the debts of Bhushan  Steel, which were Rs 44,478 crore in 2015-16, at a substantial discount. However, the Bhushan  Steel management is not on board with the deal and JSW Steel is dealing with the lenders directly.

Bhushan Steel stock is actively traded on the exchanges on the above news. In yesterday's day it closed at Rs 53, down 5%.

Nvidia to launch GeForce GTX 1080 Ti graphics processing card soon

NVIDIA will launch its highly anticipated GeForce GTX 1080 Ti graphics processing card  by April, this year. 

The hardware manufacturer had postponed GTX 1080 Ti launch date because the company wants to improve its performances. Additionally, NVIDIA is waiting for its top competitor AMD to unveil its new GPU first. Another reason to why NVIDIA isn’t hurrying to launch the upcoming card is because the highest performing GPU available on the market right now is made by NVIDIA.

Tuesday, January 24, 2017

Jio effect : Bharti Airtel's voice has become feeble in q3

Bharti Airtel has posted a net profit after of Rs. 504 cr for the quarter ended December 31, 2016 as compared to Rs. 1108 cr for the quarter ended December 31, 2015. 

The total income has decreased from Rs. 24103 cr for the quarter ended December 31, 2015 to Rs. 23415 cr for the quarter ended December 31, 2016.

The company felt the full impact of Jio's competition this quarter. 

The stock is likely to tank 4 / 5 % in tomorrow's trading.

Wockhardt reports loss in q3

Wockhardt  has posted a net loss of Rs. (53.91 cr) for the quarter ended December 31, 2016 as compared to net profit of Rs. 72 cr for the quarter ended December 31, 2015. 

The total income has decreased from Rs. 1116 cr for the quarter ended December 31, 2015 to Rs. 1001 cr for the quarter ended December 31, 2016.

Results were announced after market hours. The stock will react to the numbers in tomorrow's trading. Today it closed at Rs 682, up Rs 12.

FIIs turn net buyers

FIIs who were relentlessly selling post demonetization has turned net buyers in  today's cash market. 

They have net bought to the extent of Rs 94 cr, whereas DII's have net bought for Rs 533 cr in the same segment.

Institutions buying propped up the markt. Sensex was up by 258 and Nifty by 84 points.

Prominent gainers in today's trade included Ultra tech, Baja Auto, Hindalco, Tata Power, M&M and HDFC Bank among others.

BSE IPO receives good response on day 2

BSE IPO has received good response on day 2. The IPO which had received 50% subscription on day 1, has been oversubscribed to the extent  of 1.55 times on the second day.  The offer closes tomorrow.

NSE to delist 3 stocks

NSE has withdraw the admission to dealings in equity shares of the following companies w.e.f. February 07, 2017.

 1 Arihant Threads Limited 

2  Kamper Concast Limited 

3  Krishna Engineering Works Limited

HDFC Bank's net up by Rs 513 cr

HDFC Bank has posted  a net profit of Rs 3870 crore, for q3 fy17, up Rs 513 cr, over previous year's profit in the same quarter. 

Change in name of companies - SKS Logistics and Virgo Global

Scrip Code
Existing Name
New Name
Scrip ID for BOLT Plus System
Abbreviated name on BOLT Plus System
 526508
SKS Logistics Limited
Shahi Shipping Limited
SHAHISHIP
SHAHISHIP
532354
Virgo Global Media Limited
Virgo Global Limited
*VIRGOGLOB
*VIRGOGLOB

The change is effective from 30-01-2017.

HCL Technologies posts modest growth in q3

HCL Technologies  has posted a net profit of Rs. 2062 cr for the quarter ended December 31, 2016 whereas the same was at Rs. 1925 cr for the quarter ended December 31, 2015. 

The total Income stood at  Rs. 12021 cr for the quarter ended December 31, 2016 whereas the same was at Rs. 10704 cr for the quarter ended December 31, 2015.

The stock closed at Rs 857, up Rs 22 in yesterday's trading.

Monday, January 23, 2017

IPO Analysis : Steel City Securities Limited - Avoid


ISSUE DETAILS:

Issue opens / closes on
06-02 /09-02-2017
Promoters
G. SREE RAMA MURTHY, MR. K. SATYANARAYANA AND DR. SATISH KUMAR ARYA
Business
Stock broking

ISSUE SIZE
49,08,000 EQUITY SHARES
FACE VALUE
Rs 10
PRICE (Fixed)
Rs 55
LISTINGS
NSE Emerge
BRLMs
Keynote Corporate services
REGISTRAR
Bigshare share services

Impact due to demonetization : 5 noticeable things

Post demonetization, noticeable impact are:

1. Derailment of economy, which was moving smoothly.

2. Dent in credibility of RBI, as an independent / autonomous organisation.

3. Disruption in unorganised and informal sector.

4. All old and worn out currency replaced by new notes, including black money.

5. Negative impact on jobs.

Despite note ban blues, HUL reports increase in net

HUL has posted a net profit of Rs. 1038 cr for the quarter ended December 31, 2016 as compared to Rs. 972 cr for the quarter ended December 31, 2015. 

The total income stood at Rs. 8529 cr for the quarter ended December 31, 2015 to Rs. 8400 cr for the quarter ended December 31, 2016.

BSE IPO gets good response on day 1

BSE IPO has received 50% subscription on day 1. The IPO closes on 25-01-2017.

BSE IPO opens today - Invest

BSE IPO in the price band of Rs 805 - 806 opens for subscription.  Valuation is little bit stretched. But there will be listing gains. Invest.


ISSUE DETAILS:

Issue opens / closes on
23-01 /25-01-2017
Promoters
Professionally managed
Business
Stock exchange

ISSUE SIZE
OFS of  15,427,197 EQUITY SHARES  
FACE VALUE
Rs 2
PRICE BAND
Rs 805-806
LISTINGS
Bse, Nse
BRLMs
Edelweiss, Axis Capital, Jefferies,Nomura, Motilal Oswal,SBI caps, SMC capital
REGISTRAR
Karvy

Strengths :

a) Strong brand recognition with a track record of innovation.

b) Diversified and integrated business model and active relationship with market participants.

c) State-of-the-art infrastructure and technology.

d) Financial strength and diversified sources of revenue.

Risks:

1. Highly regulated - exchanges are highly regulated to protect the interest of retail investors.

2. Conflicts of interest. Valuation creation for shareholders at whose cost?

3. Competition- Faces stiff competition from NSE / others.

          Financials:
                                                   (Rs in crores)


30-09-2016
31-03-2016
31-03-2015
Capital
10.74
10.74
10.74
Revenue
274
516
439
Net profit
86.1
131.9
75.6
EPS
15.79
24.16
13.86

Average RNOW in the last 3 years is 5%.

Valuation and recommendations:

BSE is one of the oldest exchange in Asia. First stock exchange to be listed. The offer is made at 27 PE, on FY earnings. Though valuation little bit stretched, there will be listing gains.

Invest for listing gains.

Saturday, January 21, 2017

Bank employees strike on 7th feb

More than four lakh bank employees plan to strike work on February 7, demanding solution to demonetisation problems.

The strike call has been made by AIBEA, AIBOA and BEFI.

BSE ropes in 25 anchor investors

Ahead of its IPO BSE has allotted 46,28,158 equity shares to anchor investors at Rs. 806/- per equity share.

The anchor investors, among others, include ICICI Prudential MF, Smallcap World Fund, Birla Sun Life, SBI MF, Goldman Sachs, Citigroup and Canara HSBC Oriental Bank Ins.

Canara Bank does a Yes Bank, reports 3 fold jump in net

Canara Bank has reported a net profit at Rs 322 crore for the third quarter ended December 31, 2016. The bank had reported a net profit of Rs 85 crore in the corresponding quarter of the last financial year.

Cash recovery during the quarter at Rs 1,021 crore took the cumulative figure to Rs 2,979 crore for the nine months.

The bank’s total income for the quarter went up marginally 0.23% to Rs 12,079 crore compared with Rs 1,2051 crore in the year-ago quarter.

Net Interest Income grew at 8.40% to Rs 2,414 crore compared with Rs 2,227 crore.

Friday, January 20, 2017

Vanishing / worst performing ipos of 2011



Sl no
company
IPO price (Rs)
Remarks / CMP
Firstchoiceipo recommendations
1
Indo Thai
74
24
Avoid
2
One Life
110
22
Avoid
3
Taksheel
150
suspended
Avoid
4
RDB Rasayan
79
38
Avoid
5
Prakash Constro
138
5
Avoid
6
SRs Limited
58
5
Avoid
7
Tree House
135
23
Avoid
8
Bharatiya Global
82
18
Avoid
9
Birla Pacific
10
suspended
Avoid
10
Timbor Home
63
suspended
Avoid
11
Vms Ind
40
16
Avoid
12
Aanjaneya life
(Dr Datson lab)
234
suspended
Avoid
13
Sanghvi forging
85
45
Avoid
14
Vaswani Ind
49
11
Avoid
15
Servelaxmi
29
3
Avoid
16
Innoventure
117
suspended
Avoid
17
Paramount printpackaging
35
suspended
Avoid
18
Acropetal
90
suspended
Invest
19
Fineotex Chemical
225
29
Avoid
20


21
Sudar Garments

Midvalley
77


70
suspended


suspended
Avoid


Avoid