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 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

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Issue Details:

Issue size
$ 2.4 billions (est)

Promoters /CEO
Ben Silbermann
Social media web and mobile application company
BRLM / Underwriters
Goldman Sachs Group Inc. and JP Morgan Chase
Based at

Forthcoming IPO : Mahip Industries Limited

Issue Details:

Issue size
51,96,000 equity shares
Face value
Rs 10
Rs 32
Mfrs of packing materials
Nse sme
Finshore Management Services


Issue Details:

Issue size
6,53,000 equity shares
Face value
Rs 10
Mihir Kumar Roy
Construction / fabrication of Petroleum Storage Tank/ others
Nse emerge
Corporate Capital Ventures
Skyline Financial Services

ADAG has 122 shell companies

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Anil Dhirubhai Ambani Group (ADAG) has over 120 companies with a similar addresses of Santa Cruz (East) Mumbai

A simple search on ZaubaCorp reveals over 122 companies sharing the same address, "502, Plot no. 91/94, Prabhat Colony Santa Cruz (East) Mumbai.

Macquarie is bullish on tech majors

Macquarie in a recent note said that NASSCOM’s survey hints at the cautiously optimistic outlook for FY20, but select large and mid-cap stocks should do well.

Hiring trends in CY19 are expected to be similar to CY18. The global investment bank expects growth of most IT companies in India to improve in FY20. Deal wins in 9MFY19 to translate into better revenue growth in FY20.

Deal wins have been strong for Infosys, HCL Tech and Tech Mahindra. The global investment bank sees revenue growth in these large-caps in the range of 230-410 bps in FY20.

ING Group to off load 1.21 percent stake in KMB

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ING Group is looking to sell part of its stake in Kotak Mahindra Bank amounting to Rs 2,800 crore. The group, with 3.06 percent stake, aims to sell 1.21 percent (2.3 crore shares) via a block deal on 22-02-2019.

Kotak Mahindra Bank stock closed flat at Rs 1288 in Thursday's closing.

Wednesday, February 20, 2019

IPO ANALYSIS : Aartech Solonics Ltd - Avoid

Image result for aartech solonics ltd

Issue opens
/ closes on
21-02 / 26-02-2019
Issue size
20,12,000 equity shares
Face value
Rs 10
Rs 34
System Solution Oriented R&D
Enterprise in the field of
Specialized and Selected
Energy Applications.
Bse- sme
Swastika Investmart

Remarks :

  1. Unprofessionally managed company.
  2. Fundamentals are not strong.