Wednesday, February 6, 2019

Nikkei India services PMI contracts in Jan 2019

 Nikkei India Services Purchasing Managers' Index has contracted in January. 

This was the second straight month that the services PMI fell.

In January, the PMI stood at 52.2; in December, it was 53.2. The 50-point mark separates expansion from contraction. 

Tech Mahindra's numbers beats estimates

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 Tech Mahindra has posted a 28 per cent year-on-year growth in   consolidated net profit at Rs 1,203 crore for the December quarter,   beating analysts estimates.

 Revenue for the quarter rose 15 per cent YoY to Rs 8,944 crore.   The  company had reported a revenue of Rs 7776 Cr and net profit   of Rs 924 Cr in the same quarter last fiscal.

PNB reports Rs 247 Cr net

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Punjab National Bank has posted 7 per cent increase in net profit at Rs 247 crore for  December quarter. Nirav Modi scam hit bank had reported net profit of Rs 230 crore for the corresponding quarter a year ago.

The bank's total income, fell by 2.64 per cent to Rs 14,854 crore for the quarter under review from Rs 15,258 crore in the year-ago quarter.

PNB closed at Rs 73.30 in yesterday's trading.

Tuesday, February 5, 2019

IDBI Bank's net loss widens

IDBI Bank has reported a loss for the ninth straight quarter. Net loss widened to Rs 4,185 crore in the quarter ended December from Rs 1,524 crore a year ago. 

 The net interest income also fell 18.5 per to 1357 Cr. The bank is now controlled by LIC.

IDBI shares lost Rs 3 (6%) and closed at Rs 49.75 in yesterday's trading.

Saturday, February 2, 2019

SBI result pull down PSB stocks

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Despite good numbers from SBI, the PSB pack were down from 2 to 5% in Friday's trade. SBI has reported a net profit of Rs 3,955 crore in the third quarter ended December 31, 2018 against a net loss of Rs 2,416 crore in the year ago quarter.

The bottom line was boosted by a 21 per cent year-on-year jump in net interest income at Rs 22,691 crore and  decline in total provisions at Rs 8,670 crore.

Gross non-performing assets during the reporting quarter declined by Rs 18,099 crore to stand at Rs 1,87,765 crore as at December-end 2018.

SBI closed at Rs 282, down almost 4%. 

PNB, Canara and IDBI Bank lost 5% each. BoI lost 7%, Central Bank, UBI and BoB lost around 2%. Nifty PSU Bank index lost 3 percent.

Moody's says budget is credit negative

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Rating agency Moody's says that the inability to meet fiscal deficit target for four consecutive years as a big "credit negative" for the sovereign and  doubted if the country will meet even the 3.4 per cent fiscal gap target for FY 20. 

The agency said in the Interim Budget there is an absence of new policies to boost revenues but has many measures leading to higher expenditure which though will increase consumption will also increase the fiscal burden. 

India's PMI is at 53.9 in Jan

Nikkei India Manufacturing Purchasing Managers' Index increased from 53.2 in December to 53.9 in January, indicating stronger improvement in the health of the goods producing sector.

Friday, February 1, 2019

Muted numbers pull down Vedanta Stock

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Vedanta shares have lost more than 15% in the morning trade. As of now the stock is trading around Rs 165.

The company for Dec quarter posted a 22 per cent drop in year-on-year profit at Rs 2,332 crore. 

The company had reported Rs 2,989 crore profit in the corresponding quarter last year. 

Net sales fell 3 per cent to Rs 23,669 crore for the quarter compared with Rs 24,361 crore a year ago. 

Chalet Hotel IPO gets 1.57 times subscription on last day

Chalet Hotels IPO has been fully subscribed on the last day, thanks to QIBs. This portion got 4.66 times subscription which enabled the IPO to scrape through. Retail portion has been subscribed by just by 3 percent.

The IPO is likely to list at 20-25% discount to offer price, unless manipulated.

Bank of India, BOM and OBC out of PCA frame work

RBI has relaxed the PCA framework for Bank of India, Bank of Maharashtra and Oriental Bank of Commerce. The Banks were part of eleven government owned banks put under the framework in 2017 and 2018.

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.