Sunday, March 10, 2019

Net flows to MF industry slows down

Net flows into equities, including those linked to savings scheme funds, fell to just ₹5,122 crore in February after hitting a 24-month low of ₹6,158 crore in January, indicating a deepening slowdown in the mutual fund industry. Inflows into equity linked savings scheme funds fell around 26% to ₹1,174 crore in February from ₹1,585 crore a year ago.

PNB Swift scam : RBI penalizes most banks except PNB

The Reserve Bank on Friday said it has imposed penalties worth Rs 71 crore on 36 public, private and foreign banks for non-compliance with various directions on time-bound implementation and strengthening of SWIFT operations. Interestingly, the main culprit - PNB has not been fined.

A penalty of Rs 4 crore each has been imposed on Bank of Baroda, Catholic Syrian Bank, Citibank NA, Indian Bank and Karnataka Bank. The penalty on BNP Paribas, City Union Bank, Indian Overseas Bank, UCO Bank, Union Bank of India, and United Bank of India, is Rs 3 crore each.

The amount is Rs 2 crore each in case of Allahabad Bank, Bank of Maharashtra, Canara Bank, DCB Bank, Dena Bank, Jammu & Kashmir Bank, Oriental Bank of Commerce, and Syndicate Bank. A penalty of Rs 1 crore each has been slapped on Bank of America, Barclays Bank Plc, Central Bank of India, Corporation Bank, DBS Bank, Deutsche Bank AG, HSBC, ICICI Bank and IDBI Bank.

Also Rs 1 crore each penalty has been imposed on IndusInd Bank, JP Morgan Chase Bank, Karur Vysya Bank, Punjab & Sind Bank, Standard Chartered Bank, State Bank of India, Tamilnad Mercantile Bank and YES Bank.

Tuesday, March 5, 2019

RIL to buy logistics services firm


Image result for ril

Reliance Industries has entered into agreements to acquire logistics services platform Grab A Grub in a bid to augment the group’s digital commerce initiatives and strengthen its logistics services.
Its wholly-owned subsidiary Reliance Industrial Investments and Holdings has entered into an agreement for the acquisition of equity shares of Grab A Grub Services Private Ltd for a cash consideration not exceeding Rs 106 crore.

IPO News : MSTC to offer 17.60 lac shares


Image result for mstcecommerce

 MSTC,  formerly known as Metal Scrap Trading Corp has got approval from the Securities and Exchange Board of India  for its proposed IPO.

The IPO would be by way of offer for sale by the Union government of 17,600,000 shares, equivalent to 25 per cent of the post-offer, paid-up equity share capital.

Equirus Capital Pvt Ltd is the sole book running lead manager to the offer.

MSTC is a state owned E commerce cum trading enterprise, based at Kolkatta.

Nifty rejig : Britannia to replace HPCL

Britannia Industries will replace state-run oil retailer Hindustan Petroleum Corporation Ltd. to enter the Nifty 50 Index from March 29. 

The replacement will also be applicable to Nifty 50 Equal Weight Index. The indices are reconstituted twice every year based on data for six months ending January and July. 

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.