Tuesday, February 26, 2019

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.

Monday, February 25, 2019

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

Image result for canara bank logo


Image result for sbi bank logo


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.

Friday, February 22, 2019

Forthcoming IPO : Pinterest Inc

Image result for pinterest

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