Sunday, February 17, 2019

JSW Steel gets Bhushan Power and Steel

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Bankers of Bhushan Power and Steel have issued a letter of intent to India's largest private steelmaker JSW Steel Ltd, thus approving the latter's resolution plan for the distressed steel mill. JSW Steel will now pay Rs 19,700 crore in upfront cash to Bhushan Power and Steel's lenders and infuse around Rs 500 crore in the steelmaker to revive it.

Bhushan Power and Steel is the second insolvent firm acquired by JSW Steel after Monnet Ispat and Energy Ltd last year.

Dr Reddy's Duvvada facility receives closure report


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Dr Reddy's Laboratories says that it has received the inspection closure report for its Duvvada facility in Andhra Pradesh from the US health regulator.

We have received a written communication from the United States Food and Drug Administration (USFDA) about the issuance of establishment inspection report (EIR) for FTO VII, our formulations manufacturing facility at Duvvada, Visakhapatnam.

Jefferies questions RBI's transparency

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Leading diversified financial group Jefferies says that there is a need for the Reserve Bank of India  to be more transparent on decisions like curtailing the term of Yes Bank’s managing director and chief executive Rana Kapoor. This comes two days after the private sector lender reported that the RBI had not find any divergence or under reporting of non-performing assets for fiscal year 2017-18.

The question of why the RBI ordered Kapoor to go remains unanswered. They believe it is time for the RBI to increase transparency on decisions that have a significant impact on minority shareholders, Jefferies, the brokerage, said in a note. The brokerage pointed out that the Yes Bank stock, which gained since the zero divergence news, had lost 30 per cent following the RBI curtailing the term of Kapoor in September last year.

It can be noted that the terms of both Kapoor as well as Shikha Sharma, the head of its larger rival Axis Bank, were curtailed by the regulator. At the time of announcing these decision, the regulator failed to communicate the reason for these actions. Both the banks were found to have under reported their stock of NPAs by a cumulative Rs 10,000 crore each for two consecutive fiscal years by the RBI, leading to a wide speculation if this was the reason for the removal.

Saturday, February 16, 2019

IPO ANALYSIS : KRANTI INDUSTRIES LIMITED - AVOID


Issue Details :

Issue opens / closes on
14-02 / 20-02-2019
Issue size
23,19,000 equity shares
Face value
Rs 10
Price
Rs 37
Business
Mfrs of auto components
Promoters
MR. SACHIN SUBHASH VORA, MR. SUMIT SUBHASH VORA AND MRS. INDUBALA SUBHASH VORA
Listing
Bse, sme
BRLM
Fast Track Finsec
Registrar
LinkIntime

IPO ANALYSIS : Mindpool Technologies Limited - Invest


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Issue Details :


Issue opens / closes on
14-02 / 20-02-2019
Issue size
12,00, 000 equity shares
Face value
Rs 10
Price
Rs 30
Business
IT - software, health care. BFSI
Promoters
RITESH R. SHARMA AND POONAM R. SHARMA
Listing
Nse, emerge
BRLM
Hem Securities
Registrar
BigShare

Favorable points:

1. Profit making enterprise in tech sector.

2. Reasonably priced.

3. Diversified client base.

 Invest.

Did Yes Bank violate confidentiality clause?

Reserve Bank of India has warned Yes Bank of regulatory action for disclosure of nil divergence report in violation of the confidentiality clause.

Yes Bank in a press release earlier this week had said the RBI has not found any divergence in the asset classification and provisioning done by the lender during 2017-18. 


Friday, February 15, 2019

Goyal to lose control of Jet Airways

State Bank of India will become the largest shareholders in Jet Airways in a move to bail out the domestic airline. The Goyal-led company made the disclosure to the stock exchanges, after its board approved a draft resolution plan comprising conversion of lenders' debt into 114 million equity shares. Due to conversion Goyal's stake would be diluted to around 22 per cent from the current 51 per cent. 

Foreign partner Etihad will possibly retain its shareholding at the current level of 24 per cent. 

Jet Airways loss widens

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India's second-largest airline- Jet Airways has  reported a net loss of Rs 588 crore during the third quarter ended December 31, 2018.

 Naresh Goyal-led company had posted a net profit of Rs 165 crore in the same quarter last year.

During the quarter under review, revenue stood at Rs 6,148 crore compared to Rs 6,086 crore in Q3 FY18.

ONGC reports 65% increase in net

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Oil major ONGC has posted 65 per cent year-on-year rise in profit at Rs 8,263 crore for the quarter ended December 31. 

The company posted a profit of Rs 5,015 crore in the corresponding quarter last year. 

Revenue of the company increased by 20 per cent YoY to Rs 27,694 crore in Q3FY19. Other income jumped 89 per cent YoY to Rs 2,225 crore during the quarter under review. 

The stock should react positively in today's trade. In thursday trade it closed at Rs 133.

Thursday, February 14, 2019

Yes Bank passes RBI's divergence test

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RBI has found nil divergences in the lender’s asset classification and provisioning in 2017-18. As part of its supervisory processes, RBI assesses compliance by banks with extant prudential norms on income recognition, asset classification and provisioning.

In two prior years, YES Bank had reported divergences of Rs 4,176 crore for 2015-16 and Rs 6,355 crore for 2016-17.

The bank due to variety of reasons has lost the confidence of investors and as of now trading at 50% discount to its peak valuation a year ago.

Saturday, February 9, 2019

M& M Q3 net down by 11 percent, stock down 3 percent


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Mahindra & Mahindra has reported 11 per cent decline in standalone profit after tax  at Rs 1,077 crore for December quarter.

The company had posted a PAT of Rs 1,216 crore in the same quarter last fiscal. 

Total income during the period under review stood at Rs 13,411 crore. It was at Rs 11,676 crore in the year-ago quarter.

Vehicle sales during the third quarter stood at 1,33,508 units as against 1,21,786 units in the same period last fiscal, a growth of 10 per cent. 

M& M closed at Rs 681, down 3 percent in Friday's trading.

Tata Steel makes strong come back

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Contrary to what Tata Motors reported, Tata Steel's quarterly profit rose by net profit rose 76.5 percent over last year to Rs 2,284 crore in the December quarter. 

The company had reported a revenue of Rs 15778 Cr and net of Rs 1338 in the same quarter last fiscal.

 Revenue rose by 23 percent to Rs 41,220 crore. Operating profit increased 18 percent to Rs 6,723 crore.

The increased revenue and profit due to increased capacity from domestic acquisitions.

The shares of Tata Steel closed at Rs 469, down 4 odd percent in yesterday's trading.

Tata Motors tanks 18% on worst result

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Tata Motors reported a consolidated net loss of Rs 26,960 crore for the third quarter of this fiscal due to asset impairment in its British arm Jaguar Land Rover.

 Total revenue from operations rose 4.36 per cent to Rs 77,583 crore from Rs 74,338 crore in the previous year.

Non-cash write off worth Rs 27,838 crore for JLR, uncertainties due to Brexit and slowing sales in China impacted the company’s performance. JLR accounts for nearly 70 per cent of the company’s revenues.

The company had posted a net profit of Rs 1,215 crore in the corresponding quarter of last fiscal.

The stock tanked 18% and closed at multi year low of  Rs 150 in Friday's trading.

Wednesday, February 6, 2019

Forthcoming IPO : Cibus Global Limited


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Issue Details:
 



Issue size
$ 100 million
Price band
$ 14-16
Promoters /  CEO
Peter Beetham
Business
Development of sustainable, nature-identical plants /non-transgenic seed modification.
Listings
Nasdaq
Company based at
San Diego, California
Underwriters
Morgan Stanley, Merrill Lynch, BMO Capital and Piper Jaffray and co.