Thursday, February 23, 2017

IMF does U turn note ban

IMF which had hailed note ban initially has made a U turn, by indicating that note ban has hurt the economy and says that growth will come down below 6 percent in FY18.

Wednesday, February 22, 2017

RIL's market cap surges near Rs 4 lac crore

RIL stock has gained 8 odd percent as of now and trading at Rs 1183. The market cap stands at Rs 3.84 lac crores. The stock has gained more than 16% in the last 30 days.

QUOTE OF THE DAY


Passion will keep you going when the going gets tough.

David Copperfield.

Tuesday, February 21, 2017

Canara bank appoints SBI Caps to lead manage its rights offer

Canara Bank has appointed SBI Capital Markets as it sole lead manager for rights issue which opens on 2nd March.

 The bank is issuing 5,42,99,105 equity shares of Rs 10 FV at a price of Rs 207, amounting to Rs 1124 cr.

Rights in the ratio of 1 for every 10 shares held. The offer closes on 16-03-2017.

Karvy Computershare pvt limited are the registrar to the issue.

JSPL surges despite reporting loss

JSPL  has posted a net  loss of associates of Rs. (407 cr) for the quarter ended December 31, 2016 as compared to net loss of Rs. (869 cr) for the quarter ended December 31, 2015. 

The stock was trading around Rs 88, on the day of result. Since then it is moving only in one direction. From Rs 88 to Rs 110, in 5 trading sessions. After touching 110 in today's trade, the stock as of  now trading around Rs 108.

Reliance Jio ties up with Uber

 Reliance Jio Infocomm  has tied up with Uber. For Uber this will make RJio as its  largest merchant partner in the country.

 Uber and Reliance Jio strategic partnership  will allow users of the Uber  services to  pay for rides using Jio Money. In addition, users of Jio Money will have the option of  booking a ride on Uber from within the app.

TCS buy back offer at Rs 2850



TCS  board  has approved buyback at Rs2,850 per share, which is at a premium of around 18% to its Friday's close of Rs 2,407 per share.

It will cost Tata Consultancy Services over Rs 16,000 crore. TCS intend to buy  2.85%, equity shares on a proportionate basis. 

TCS gained  4% in yesterday's trading and closed at Rs 2505.

Forthcoming IPO : BHARAT ROAD NETWORK LIMITED



ISSUE DETAILS:



Promoters
SREI INFRASTRUCTURE FINANCE LIMITED AND MAKE IN INDIA FUND
Business
Road BOT company

ISSUE SIZE
29,300,000 EQUITY SHARES
FACE VALUE
Rs 10
PRICE Band
--
LISTINGS
BSE, NSE
BRLMs
Inhga Capital, Investec Capita, Srei Capital Markets
REGISTRAR
Karvy

Monday, February 20, 2017

Saudi legislation to hit Indian workers hard

Recently US  introduced a legislation  to more than double the minimum salary of H-1B visa holders from the current figure of $60,000 to $130,000. The move is a bid to stop American firms from hiring less expensive foreign labour, including from India.


Now, Saudi Arabia,  where about 3 million Indians live and work and send home about $11 billion in remittances to India, of the total $70 billion from around the world,  has newly introduced value-added tax could increase the cost of living in the hitherto tax-free country, leaving fewer savings for Indians to send home.

Sunday, February 19, 2017

IPO News : IRB InvIT Fund receives sebi's nod

IRB InvIT Fund, has received  Securities and Exchange Board of India's approval to raise Rs 4,300 crore through initial public offering.

Saturday, February 18, 2017

McKinsey & Company : Gloomy outlook for services tech giants

Indian IT services players may have to re-skill significant chunks of their workforce to drive the digital technology transformation. 

Global advisory firm McKinsey & Company says in a report, which was presented at the Nasscom India Leadership Forum on Friday, nearly half of the workforce in the IT services firms will be “irrelevant” over the next 3-4 years. 

The report has suggested that IT services providers must turn around their businesses in five major ways such as explosion of new service lines and solutions, investment to build new capabilities, coexistence of digital transformation and traditional services, acquisitions and re-skilling employees with emerging technologies. 

IPO News : Bharat Road Net Works to raise Rs 1200 cr

Bharat Road Network has filed papers with SEBI with for its initial public offering.The offer consists of issuing  29,300,000 equity shares having a face value of Rs 10 each. The issue size is estimated to be around Rs 1,200 crore.

BRNL is a road BOT company, focused on development, implementation, operation and maintenance of roads and highways project.

SREI has financial stake in the company.

SBI associate banks to offer VRS scheme

SBI's five associate banks will offer voluntary retirement schemes (VRS) for their employees before the merger comes into effect. State Bank of Bikaner and Jaipur, State Bank of Hyderabad , State Bank of Mysore, State Bank of Patiala and State Bank of Travancore  are in the process of  seeking  their respective boards approval in this regard.

HDFC Bank replaces RIL as second most valued company

HDFC Bank has replaced RIL as second most valued company on the Indian bourses. HDFC Bank gained Rs 49 in yesterday's trade and closed at Rs 1377. Its market cap stands at Rs 3.52 lac crore, as against RIL's Rs 3.49 lac crore. TCS is the most valued company with a market cap of Rs 4.74 lac crore.

Payment wallet not viable - Aditya Puri

HDFC Bank's CEO Aditya Puri says that Payment wallet is not viable in the long term. For a wallet to be operational you have to transfer money from your bank to the wallet. He thinks wallets have no future. There is not enough margin in the payment business for the wallets to have a future, Puri, said at the annual Nasscom India Leadership Forum (NILF) in Mumbai.

We, at FirstChoice IPO, fully agree with the views of Puri.

Vardhaman Special Steels files papers for rights issue

Vardhaman Special Steels has filed papers with SEBI for rights issue. The company intends to offer 1,35,70,000  equity shares of Rs 10 FV at a price of Rs 50 each, aggregating to Rs 67.85cr. Rights in the ratio of 2 shares for every 3 shares held.

Thursday, February 16, 2017

Midcaps which have given 100% return in the last one year.

The benchmark indices , Sensex and NIFTY has risen by 24% in the last one year, whereas the following 7 stocks have given more than 100% return during the same period.

Sl no
Name of the company
CMP
Industry / Segment
1
Century Textile
904
Textile
2
L&T Finance Holdings
111
Finance
3
IGL
1060
Energy
4
Biocon
1064
Pharma
5
CESE
850
Power utility
6
Sun TV
722
Media
7
Tata Communications
731
Telecom /IT

Forthcoming IPO : SALASAR TECHNO ENGINEERING LIMITED



ISSUE DETAILS:



Promoters
Gyanendra Kumar Agarwal, Alok Kumar, Shalabh Agarwal and Ms. Tripti Gupta
Business
Steel fabrication / infra solutions

ISSUE SIZE

33,21,000 equity shares
FACE VALUE
Rs 10
PRICE (Fixed)

Rs 108
LISTINGS
Bse, Nse
BRLMs
Sarthi Capital
REGISTRAR
Big Share

Wednesday, February 15, 2017

IPO ANALYSIS : GLOBAL EDUCATION LIMITED - AVOID




ISSUE DETAILS:


Issue opens / closes on
17-02 /22-02-2017
Promoters
RISHABH SUNIL SURANA AND MIGHTY OVERSEAS PRIVATE LIMITED
Business
Providers of professional training and skill developments to corporates,


ISSUE SIZE

6,83,000 equity shares
FACE VALUE
Rs 10
PRICE
Rs 140-150
LISTINGS
Nse- Sme
BRLMs
Hem Securities
REGISTRAR
Big share
Reasons:

1. Negative cash flows from operations.

2. For the 6 months ended 30-09-2016, the revenue earned is Rs 15.84 cr, out of this almost Rs 9 cr is shown as trade receivables. Something terribly wrong here.

IPO ANALYSIS :TANVI FOODS (INDIA) LIMITED - AVOID




ISSUE DETAILS:


Issue opens / closes on
17-02 /22-02-2017
Promoters
Nagaveer Adusumilli
Business
Trading, distribution, and processing of Food and Beverages


ISSUE SIZE

11,00,000 equity shares
FACE VALUE
Rs 10
PRICE (Fixed)
Rs 60
LISTINGS
Bse- Sme
BRLMs
Aryaman Financial Services
REGISTRAR
Big share


Reasons:


1. Limited operational history.
2. Income tax arrears / dispute.
3. Irrationally priced.

Muted numbers by Sun Pharma in q3

Sun Pharma has posted a net profit of Rs. 1472 cr for the quarter ended December 31, 2016 as compared to Rs. 1545 cr. for the quarter ended December 31, 2015. 

Total Income has increased from Rs. 7295 cr for the quarter ended December 31, 2015 to Rs. 8034 cr for the quarter ended December 31, 2016.

Note ban effect : Tata Motors profit nose dives in Dec quarter

Tata Motors  has posted a net profit of Rs. 112 cr for the quarter ended December 31, 2016 as compared to Rs. 2952 cr for the quarter ended December 31, 2015. 

Total Income has decreased from Rs. 71809 cr for the quarter ended December 31, 2015 to Rs. 68708 cr for the quarter ended December 31, 2016.

Only 6 IPOs of 2015 are trading below offer price

Out of the 21 IPOs that hit the street in 2015, the following 6 IPOs are trading below the offer price.

1 PNC Infratech Limited                            
2 UFO Moviez India Limited
3 MEP Infrastructure Developers Limited
4 Inox Wind Ltd
5 Adlabs Entertainment Limited
6 Ortel Communications Limited


FirstChoiceIPO had advised the investors too stay away from all the above IPOs.

Tuesday, February 14, 2017

BOB tanks 10% on poor loan growth

BOB tanked 10% in yesterday's trading and closed at Rs 168. Though the bank posted net profit in q3 of fy17, as against loss reported in the same quarter last year, the bank's loan book did not grow much. This has resulted in down grading of stock and unwinding of long position by operators.

HPCL net jumps by 50 plus percent.

HPCL posted a net profit of Rs. 1590 cr for the quarter ended December 31, 2016 as compared to Rs. 1041 cr for the quarter ended December 31, 2015. 

Total Income has increased from Rs. 48526 cr for the quarter ended December 31, 2015 to Rs. 55828 cr for the quarter ended December 31, 2016.

Infosys hiring drops

Infosys hiring in FY 17 dropped. Infosys had employee strength of 1,99,763 as on December 31 as against 1,99,829 as on September 30 and 1,97,050 as on June 30 of the current fiscal.

Monday, February 13, 2017

Motherson Sumi beats estimates

Motherson Sumi has posted a net profit of Rs. 547 cr for the quarter ended December 31, 2016 as compared to Rs. 427 cr. for the quarter ended December 31, 2015. 

Analysts were expecting the company to report profits around Rs 490 cr for Dec quarter.

Total Income has increased from Rs. 9602 cr for the quarter ended December 31, 2015 to Rs. 10840 cr for the quarter ended December 31, 2016.

FORTHCOMING IPO : TEJAS NETWORKS LIMITED



Issue details:



FACE VALUE
Rs 10
ISSUE SIZE
Rs 450 cr

BUSINESS
Optical and data networking products company
PROMOTERS
Professionally managed
LISTINGS
Bse, nse
BRLMs
Axis Capital, Nomura, Citigroup, Edelweiss
REGISTRAR
Link Intime
IPO GRADE
NA