Regulation favors Jio : Voda chief

British telecom major Vodafone has alleged that regulatory outcomes in India over the past two years have been against every telecom operator except Reliance Jio. 

Currently, in India, Vodafone operates as Vodafone Idea Ltd in partnership with Aditya Birla Group. 

Vodafone Chief Executive Officer Nick Read, however, highlighted that its business in India has gone through a tough period but now, the company is well-positioned to play in the country with plans to invest in network and monetisation of assets. 

IPOs of 2017 : 20 out of 36 trades below offer price

Sl No	Name of the company	IPO price (Rs)	CMP (Rs  )/ Remarks	FirstChoiceIPO recommendations
1	BSE	806	575	Invest only for listing gains
2	Music Broadcast	333	55	Avoid
3	CL Educate	502	124	Avoid
4	Shankara Buildings	460	444	Avoid
5	S Chand & co	670	180	Avoid
6	Tejas Network	257	158	Avoid
7	GTPL Hathway	170	82	Avoid
8	SIS	815	765	Invest
9	Cochin Shipyard	432	350	Invest
10	Bharat Road NW	205	97	Avoid
11	Matrimony.com	985	386	Avoid
12	Capacite’ Projects	250	206	Avoid
13	SBI Life	700	560	Avoid
14	Pratap snacks	938	842	Avoid
15	India Energy	165	157/stock split from Rs 10 to Rs 1.	Avoid
16	Reliance Nippon	252	201	Avoid
17	New India Assurance	800	171 /stock split from Rs 10 to Rs 5	Avoid
18	Khadim India	750	364	Invest
19	Shalby Limited	248	134	Avoid
20	Future Supply	664	618	Avoid

Expect for 3 IPOs, we had recommended to stay away from rest of the offers.

Reliance Retail Venture to list soon?

Reliance Retail Ventures is preparing to go public soon.

Parent Reliance Industries Ltd (RIL) operates its retail business through Reliance Retail Ventures, the holding company for Reliance Retail Ltd and Reliance Brands. The latter operates joint ventures with international brands

Moneycontrol recommends buying SBI and Canara Bank

Moneycontrol.com is recommending two PSB stocks for long term. They are SBI and Canara bank.

1. SBI |Rating: Buy | CMP: Rs 271 | Target: Rs 319 | Return: 18 percent| Long term

Net Profit was at Rs 3,955 crore, 318.56 percent rise during Q3FY19 against loss of Rs 2,416 crore in the preceding quarter of the previous year. Credit cost has declined sharply by 105 bps providing cushion for earning growth. 

There has been sustained improvement in asset quality with GNPA, Net NPA and PCR improving to 8.71 percent, 3.95 percent and 74.63 percent, respectively. Moreover, recovery in Written-Off accounts registered a very robust growth of 81.94 percent YoY from Rs 3,221 crore in 9MFY18 to Rs 5,860 crore in 9MFY19.

Loan growth in FY19 for SBI is guided to be 14 percent, in line with industry slated growth at 15 percent. As the bank is still short of priority sector lending target and keeping this in line, management expects to bring in around Rs 45,000 crore loans from NBFCs. 

The recent moderation in bond yields is expected to provide a boost to treasury performance additionally. We recommend buying the stock as SBI is available at an attractive valuation. Estimating P/BV at 1.20x  for FY20, the estimated share price turns around to Rs 319.

2. Canara Bank | Rating: Buy | CMP: Rs 222 | Target: Rs 277 | Return: 25 percent| Long term

During the first nine months of the current fiscal, the Net Interest Income grew a healthy 19.6 percent YoY. Further, the provision coverage ratio has improved 670 bps to 62.54 percent from the December 2017 level of 55.81 percent. Also, unbroken efforts to boost the asset quality have marked well for the bank. Rich restoration and up-gradations have helped GNPA decrease 31bps to 10.25 percent combined with net NPA lower by 17bps at 6.37 percent.

The capital optimisation measures taken by the bank have led to a decrease in risk-weight density to 87.39 percent as of December 2018 from 91.27 percent as of December 2018. Indeed, the well capitalized position of the bank will provide helping hands for further credit growth. Domestic NIM improved to 2.85 percent.

FirstChoiceIPO too has buy call on both the stocks as long term investment.

Good news for home buyers, GST rates slashed

In a big relief to home buyers, the GST Council has slashed tax rates on under-construction housing properties to 5% without input tax credit, from the existing 12%. The Council also cut GST rates on affordable housing to 1% from the current 8% and expanded the scope of affordable housing to those costing up to ₹45 lakh and measuring 60 sq. meter in metros and 90 sq. meter in non-metro cities.

The new tax rates will come into effect from April 1, 2019.

Currently, the GST is levied at 12% on payments made for under-construction properties or ready-to-move-in flats where completion certificate has not been issued at the time of sale.

Will merger of Ins companies happen before March 2019?

Government had announced the merger of three public sector general insurance firms - National Insurance Company, United India Insurance Company and Oriental India Insurance Company. The move was billed as the biggest ever merger in the insurance sector with the new entity having a valuation exceeding Rs 1 lakh crore. It intended to complete the exercise in FY19 itself. Will it happen this fiscal or pushed over to next fiscal.

SBI to NCLT for recovery of Jet Airways loan

Trouble for Jet Airways again. SBI is mulling moving National Company Law Tribunal as it feels the airline is running out of funds for operations, even as shareholders of the debt-laden carrier have approved a debt rejig plan.

Jet Airways has debt around Rs 8000 Cr and servicing the debt is a major problem for the airliner.

Forthcoming IPO : Pinterest Inc

Issue Details:

 

Issue size	$ 2.4 billions (est)
Promoters /CEO	Ben Silbermann
Business	Social media web and mobile application company
Listings	Nasdaq
BRLM / Underwriters	Goldman Sachs Group Inc. and JP Morgan Chase
Based at	SFO, USA