Friday, August 19, 2016

RBL BANK IPO GETS GOOD RESPONSE ON DAY 1

RBL Bank IPO has received 66% subscription on day 1.

NSE SHIFTS 4 STOCKS TO 'Z' CATEGORY

NSE has shifted the following 4 stocks to Z category.

1. Broadcast Initiatives Limited. 

2. GEI Industrial Systems Limited. 

3. Lumax Automotive Systems Limited.

4. Kemrock Industries and Exports Limited.

SBI TO MERGE SBBJ, SBM, SBT AND BMBL

SBI will merge SBBJ, SBM, SBT and BMBL with self. The acquisition scheme provides for allotment of:

a. 28 equity shares of Rs 1 each of SBI for every 10 equity shares of Rs 10 each of SBBJ

b. 22 equity shares of Rs 1 each of SBI for every 10 equity shares of Rs 10 each of SBM

c. 22 equity shares of Rs each of SBI fvor every 10 equity shares of Rs 10 each of SBT

d. 4,42,31,510 equity shares of Rs 1 each of SBI for every 100 crore equity shares of Rs 10 each of BMBL.



Thursday, August 18, 2016

DEUTSCHE BANK MAINTAINS BUY ON JUST DIAL, TARGET RS 1000

Deutsche Bank has recommended to buy Just Dial with a medium term target of Rs 1000. Just Dial has corrected more than 50% in the last one year and 15% in the last one month.  The stock closed at Rs 471 in yesterday's trading.

Rio 2016 Medals tally


#CountryGold medalsSilver medalsBronze medalsTotal medals
1United States28302886
2Great Britain & N. Ireland19191250
3China17152052
4Russia12141541
5Germany118928
6Japan1041832

Courtesy : BBC News.

ROE : AXIS, HDFC BANK BEATS CHINESE GIANTS

Indian private sector banks - HDFC Bank, Axis Bank and ICICI Bank  have beaten their Chinese peers China Construction Bank Corp, Industrial and Commercial Bank of China  and Agricultural Bank of China, on key return ratios, namely return on equity and return on assets.

 A comparison of the top 10 Indian banks and top 10 global banks reveals that banks in these two countries enjoy the best in class return ratios among global peers.

For FY16, HDFC Bank and Axis Bank earned the highest return on assets of 1.91 per cent and 1.67 per cent, respectively, followed by CCB, which clocked return on assets of 1.3 per cent. ICBC and ICICI Bank completed the top five list with RoAs of 1.29 per cent and 1.17 per cent, respectively.

American Banking giants JPMorgan Chase and Bank of America have given less than one percent RoE.

Tuesday, August 16, 2016

DIVI'S LAB NUMBERS BEATS ESTIMATES

DIVI'S LAB  has posted a net profit of Rs. 3018.10 million for the quarter ended June 30, 2016 as compared to Rs. 2451.80 million for the quarter ended June 30, 2015. 

Total Income has increased from Rs. 8429.30 million for the quarter ended June 30, 2015 to Rs. 10243.90 million for the quarter ended June 30, 2016.

BREXIT IMPACT : INFY FACES MUSIC

Infosys will face music as Royal Bank of Scotland  shelved plans to set up a separate bank in the United Kingdom, for which Infosys was a key technology partner. Infosys could lose as much as $50 million as it plans to shift 3,000 people from this project to other clients. 

Monday, August 15, 2016

NSE TO DELIST 14 COMPANIES.

NSE will delist 14 companies from 31st Aug. The companies to be delisted are — Chemox Chemical Industries, Ganapati Exports, Hamco Mining & Smelting, Mansukh Industries, Mardia Chemicals, Mardia Steel, Moolchand Exports, Motorol, Pal Peugeot and Ponni Sugars, Prudential Capital Markets, SIV Industries, SMZS Chemicals and Vibrant Investment and Properties.

WOCKHARDT POSTS WORST RESULTS

WOCKHARDT has posted a net profit of profit of associates of Rs. 16 cr for June quarter of 2016 as compared to Rs. 92 cr for the quarter ended June 30, 2015. Total Income has decreased from Rs. 1160 cr for the quarter ended June 30, 2015 to Rs. 1097 cr for the quarter ended June 30, 2016.


The stock has fallen more than 15% in the last one month and 50% in the last one year. The stock closed  at Rs 811, in Friday's trading.


IPO ANALYSIS: RBL BANK LIMITED – AGGRESSIVELY PRICED - AVOID



ISSUE DETAILS

ISSUE OPENS / CLOSES ON

19-08 / 23-08-2016
ISSUE SIZE / OFS
RS 1150 CR
FACE VALUE
RS 10
PRICE BAND
RS 224-225

BUSINESS

BANKING, FINANCIAL SERVICES

PROMOTERS

PROFESSIONALLY MANAGED
LISTINGS
BSE, NSE

BRLMs
Kotak Mahindra Capital Company, Axis Capital, Citigroup Global Markets India, Morgan Stanley India, HDFC Bank, ICICI Securities, IDFC Securities, IIFL Holdings and SBI Capital Markets.
REGISTRAR
LINK INTIME
IPO GRADE
NA

BUSINESS:

RBL Bank is one of the fastest growing private sector banks in the last few years. As of March 31, 2016, RBL had 197 interconnected branches and 362 interconnected ATMs spread across 16 Indian states and union territories serving approximately 2 million customers. Though the Bank has a 73-year operating history, the bank has been transformed in the past six years from a traditional bank into a ‘New Age’ bank while harnessing the heritage, relationships with customers and domain strengths.

OBJECTS OF THE ISSUE:

The objects of the Fresh Issue are to augment the Bank’s Tier-I capital base and to ensure compliance with Basel III requirements and other RBI guidelines.

       

  FINANCIALS:  (RS IN CRORES)



31-03-2014
31-03-2015
31-03-2016
CAPITAL
272.04
293.45
324.78
REVENUES / TOTAL INCOME

1613

2356

3234
NET PROFIT
    93
  208
  297
EPS (Rs)
  3.63
  7.23
 9.43
RONW (%)
 4.60
  9.29
 9.79

  

  RISKS


1. The success depends largely upon the top management team,skilled personnel and the ability to manage attrition as well as to attract personnel.

2. Low CASA: CASA ratio has decreased from 20.43% as of March 31, 2014 to 18.46% as of March 31, 2015, and then increased to 18.64% as of March 31, 2016.

3. Regional concentration - in western and south-western India.

4. Banking industry is highly competitive.

5. As on March 31, 2016, the top 20 depositors constituted 22.88% of the total deposits.

6. A prolonged downturn in the real estate market could result in losses and adversely affect the profitability of the bank. As of March 31, 2016, bank’s exposure to the real estate sector amounted to ₹ 22,48cr, representing more than 7 % of the gross credit portfolio.

VALUATION AND RECOMMENDATIONS:

The bank is likely to post an EPS of Rs 10 for FY 17 on the expanded capital. The asking PE is 20 plus, which is on the high side for a bank of RBL’s profile. The comparative listed entity is Karnataka Bank which is trading around Rs 180 and available for less than 10 PE.  

The IPO has been aggressively priced. The average RONW for the last 3 years is less than 10 percent.

AVOID THE IPO.

Sunday, August 14, 2016

BSE IPO BEFORE BUDGET, SCOUTS FOR BRLMS

BSE Ltd has plans to hit the primary markets before the next Central budget. BSE in talks with  Axis, Edelweiss, Jefferies and Nomura as joint global coordinators for its Rs 10,000 cr plus IPO.

The other merchant bankers who are eyeing for role in the proposed IPO are  Deutsche Bank, Motilal Oswal and SBI Capital Markets.

Saturday, August 13, 2016

SUN PHARMA POSTS STELLAR RESULTS IN Q1, STOCK SKIDS

Sun Pharmaceutical Industries  has posted a net profit of Rs. 2034 cr for the quarter ended June 30, 2016 as compared to Rs. 556 cr for the quarter ended June 30, 2015. 

The total income has increased from Rs. 6925 cr for the quarter ended June 30, 2015 to Rs. 8400 cr for the quarter ended June 30, 2016.

Despite good numbers the Sun Pharma shares were down by Rs 8 and closed at Rs 800 in yesterday's trading.

Friday, August 12, 2016

US INDEXES HIT RECORD HIGH

All three major US indexes hit record highs in yesterday's trading- the first time they have done so on the same day since 1999.

The Dow Jones rose 117.8 points, or 0.6%, to 18,613.

The wider S&P 500 index climbed 10 points to 2,186, while the Nasdaq was 24 points higher at 2,186.

RIO 2016 : MEDALS TALLY, USA LEADS



#CountryGold medalsSilver medalsBronze medalsTotal medals
1United States13121035
2China107926
3Japan611219
4Australia53614
5South Korea52411
6Hungary5117