Thursday, January 31, 2019

Chalet Hotels IPO closes today : Avoid

Recommendations :

The company has posted an EPS of Rs (7) for FY 16, Rs 8 for FY 17, Rs 1.35 for FY 18 and for the first six months of FY 19 Rs (2.43). Inconsistent financial performance. The IPO is very aggressively priced. Avoid the IPO.

Post listing, the stock could come down below Rs 200 level within weeks.

As on yesterday the IPO has received 28 percent subscription. 

Bajaj Auto slips despite good numbers

Bajaj Auto has posted a higher profit, exceeding analysts' expectations. Net profit rose to Rs 1102 crore  for the three months ended December 31, compared with Rs 952 crore a year earlier.

Sales volume surged 26%, helping total revenue from operations jump 16% to Rs 7409 crore, the company said in a statement.

The stock closed at Rs 2492, down 3 percent in yesterday's trade.

Tuesday, January 29, 2019

Axis Bank's net, NIM, asset quality improves considerably

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 Axis Bank has reported 131 per cent(YoY) standalone profit at Rs 1,681 crore, for Dec quarter. This much above what was expected by street. 

The bank had posted a profit of Rs 726 crore in the year ago period. 

The bank has recovered Rs 998 crore largely comprising of two accounts from the prudentially written off pool. 

NIM margin for the quarter rose to 3.47 per cent from 3.36 per cent in September quarter. 

Gross NPA dropped to 5.75 per cent from 5.96 per cent sequentially. 

Results were announced after market hours. The stock closed at Rs 669 in today's trade. 

RBL reports Rs 225 Cr net

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RBL Bank has reported a rise of 36 per cent in net profit at Rs 225 crore for December quarter. The bank had registered a net profit of Rs 165 crore in December  of the previous financial year.

Total income increased 42 per cent to Rs 1,029 crore as against Rs 725 crore in December quarter of 2017. 

Net interest income was up 40 per cent to Rs 655 as against Rs 467.30 crore in the year-ago period. 

Monday, January 28, 2019

Canara Bank's stellar number fails to pop up the stock

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 Canara Bank has reported 152 percent on year growth in profit at Rs 318 crore, for Dec quarter.  The bank had reported a net profit of Rs 126 Cr in the same quarter last fiscal.Lower provisions drove the profitability higher.

Net interest income during the quarter grew by 3.66 percent year-on-year to Rs 3,814 crore with loan growth of nearly 12 percent at Rs 4.17 lakh crore.

Provisions and contingencies fell sharply to Rs 1,977 crore in quarter ended December 2018, down 30 percent sequentially and 26 percent compared to year-ago.

The stock lost 5% and closed at Rs 240 in today's trade.

Saturday, January 26, 2019

IPO ANALYSIS : Chalet Hotels Limited

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Issue Details :

Issue opens
29-01 / 31-01-2019
Issue size
Rs 950 Cr plus OFS of 2.46 crore shares
Face Value
Rs 10
Price Band
Rs 275-280
Hotel / hospitality
K Raheja group
Bse, Nse
JM Financial Limited, Axis Capital Limited and Morgan Stanley India Company Private Limited
Await detailed analysis.

Chanda and Chandra new headache for banks.

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CBI has charged the former managing director and CEO of ICICI Bank, Chanda Kochhar  and her husband for favoring Videocon group companies. The CBI has alleged that these people conspired to defraud ICICI Bank of Rs 1,730 crore. The matter pertains to an alleged quid-pro-quo transaction involving Deepak Kochhar and Dhoot, where in Dhoot has paid Rs 64 Cr as bribe to Chanda's husband to get loan sanctioned fro Videocon group.

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A report in The Wire claims that there is a link between Subash Chandra's  Essel Group and a company currently being investigated by the Serious Fraud Investigation Office for deposits of over Rs 3,000 crore made around November-December 2016, just after demonetization was announced on November 8, 2016.

ZEEL saw its share price fall  by 30  per cent on Nse and closed at Rs 299.70. Similarly another group company -Dish TV, fell by 33 per cent.

Essel group has debt around Rs 12,000 Cr from various banks / financial institutions. And these loans are likely to be turned NPA this quarter.

L& T bucks the trend, reports robust numbers

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Infra major Larsen & Toubro has reported strong numbers for Dec quarter. The net profit stood at Rs 2,042 crore in October-December of FY19 over Rs 1,490 crore in Q3 FY18. 

Revenue from operations jumped 24 per cent to Rs 35,709 crore in Q3 against Rs 28,747 crore in the same period last year. 

Results were announced after market hours on Friday. The stock will react positively in Monday's trade. L&T closed at Rs 1288, down Rs 7, on 25-01-2019. 

Friday, January 25, 2019

CBI says that Chanda family received bribes

Central Bureau of Investigation probe against former ICICI Bank CEO and MD Chanda Kochhar has revealed that she received "illegal gratification" through her husband Deepak Kochhar for favoring Videocon group. 

Being the head of ICICI Bank, CBI says, Chanda Kochhar approved six loans to Venugopal N Dhoot's Videocon group between June 2009 and October 2011. One such loan - a rupee term loan  worth Rs 300 crore was given to Videocon International Electronics and Rs 64 Cr as bribe was received by her husband's company.

Muted numbers from Yes Bank

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 Yes Bank has reported  7 per cent drop in net profit for the quarter ended December 2018. Its net profit stood at Rs 1002 crore, against Rs 1077 crore a year ago. Net interest income  rose by 41 per cent to Rs 2666 crore in December 2018 from Rs 1,888 crore in the year-ago quarter. 

RBI approves Ravneet Gill as MD, Ceo of Yes bank, stock gains 14 percent

RBI has approved Ravneet Gill as the new Managing Director and Chief Executive Officer  of Yes Bank.

The Bank has received RBI approval for its new MD & CEO, Mr. Ravneet Singh Gill for him to join on or before March 1, 2019.  Yes Bank's current MD Rana Kapoor's term ends on January 31. Mr Gill is the India Chief of Deutsche Bank now.

Stock gained 14% and closed at Rs 225 in yesterday's trading.

Biocon's net more than doubles

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Biocon's net profit rose 136 percent to Rs 217 crore in the Oct-Dec quarter compared with a profit of Rs 92 crore in the same period of previous year.

Total revenue for the quarter grew 44 percent to Rs 1,566 crore in the third quarter on YoY basis.

Thursday, January 24, 2019

ICICI Direct : Britannia to be included in Nifty

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Britannia Industries could soon make its way into the benchmark Nifty 50 index. According to an analysis by ICICI Direct, either HPCL or telecom tower company Bharti Infratel may make way for this stake.

Britannia closed at Rs 3204, up Rs 50 in yesterday's trade.

Vodafone Idea to raise Rs 25,000 Cr rights offer

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The board of directors of Vodafone Idea  has approved Rs 25,000 crore fund-raising plan by way of rights issue to existing eligible equity shareholders, according to filing with the exchanges.