Month: June 2021

IndusInd Bank launches digital lending platform

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Private sector lender IndusInd Bank on Thursday announced a comprehensive digital lending platform where its existing customers as well as customers of other banks can avail personal loans or credit cards.

“IndusEasyCredit offers a fully digital end to end process that leverages the power of India’s public digital infrastructure – Indiastack to offer personal loans and credit cards in a paperless, presence less and cashless manner,” the bank said in a statement.

Also read:Google Pay expands cards tokenisation with SBI, IndusInd, HSBC and Federal Bank

The stack leverages more than 35 interfaces to digitally verify KYC and employment information as well as analyse bank statements, it further said, adding that it then leverages advanced analytics and machine learning based models to assess eligibility in real time.

The customer can then conduct Video KYC and get the loan disbursed into his or her account after executing the agreement digitally; without having to visit a branch or do any lengthy documentation. The stack will also be leveraged by various partners of the bank.

Also read: Why digital payment is a public good

“IndusEasyCredit provides customers with the flexibility to avail a personal loan or a credit card on a single platform, in a completely seamless, paperless, and digital manner. We believe that this proposition will offer customers a differentiated banking experience,” said Charu Mathur, Chief Digital Officer and Head-Business Strategy, IndusInd Bank.

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After retail, ICICI eyes digital opportunities in corporate sector, BFSI News, ET BFSI

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As retail loans, the mainstay of banks reeling under bad loans, for many years shows pandemic stress, lenders are turning back to corporates.

ICIC Bank, which has been cautious on bulky corporate lending, is looking to increase exposure to companies as it sees them benefiting from the Covid pandemic recovery. Corporate loans constitute 45% of the bank’s Rs 7.33 lakh crore loan book.

ICICI STACK

To tap the corporate loan pie, the company has launched a digital solution, aimed at profiting by offering a wider set of services to high-value clients.

The second-largest private sector lender also said that the corporates are slower in adopting digital solutions as compared to the retail segment, and added that the solution focuses on tech-based new age offerings.

A corporate needs a trusted partner, who will handhold and help manage business holistically.

Its newly launched ‘ICICI STACK will provide digital banking solutions to corporates, their channel partners, employees and other stakeholders.

The bank expects corporate demand also to pick up in the next economic cycle. The bank has doubled the number of current accounts in the last year, The bank has launched a new digital banking product that will provide transaction services, credit facilities, advisory and M&A services for companies and their vendors. It will also offer savings bank accounts to the company employees which will help it build its deposits.

Comprehensive product

The new comprehensive digital offering will help the bank connect with companies their vendors and also employees providing it with valuable information to assess the financial health of their clients besides multiplying opportunities for business.

The bank will offer this new product to 15 industries initially, like information technology, pharmaceuticals, steel and financial services. It has opened eight dedicated branches, five in Mumbai and three around Delhi to serve these customers. Another four branches focussed on these services will be launched later this fiscal.

The lender is not looking at it from a line-by-line perspective and expects the initiative to play into the overall profits.

About 90 per cent of the bank’s retail transactions have moved away from paper-based systems like cheques and termed the adoption of digital alternatives among corporates as “low”. Corporates have doubled up on digital transactions, but have a long way to go on it.

Corporate loan growth

The bank feels India will grow after the ravages of the pandemic and the same will come from both investment and consumption.

In such a scenario the corporate loan demand will also fire up, and added that its corporate loan book is a function of the opportunities in the market.

The bank had witnessed a 13 per cent growth in corporate advances in the March quarter as against 20 per cent on the retail front, and overall domestic loan growth of 18 per cent.

It can be noted that even before the pandemic, corporate loan growth was trailing for banks, which shifted focus to the more resilient retail segment amid asset quality reverses on the large value loans. Some experts say with demand affected, corporates are unlikely to up their investment activities, which typically result in loan growth.



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To power FY22 advances growth, Bank of Maharashtra eyes ₹2,000 cr fund raise

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Bank of Maharashtra (BoM) has embarked on an exercise to mop up ₹2,000 crore via qualified institutions placement (QIP) of equity shares in a bid to support its FY22 advances growth target of 16-18 per cent.

The Pune-headquartered public sector bank expects to tap the QIP route, comprising core issue size of ₹1,000 crore and a green shoe option of ₹1,000 crore, by July-end.

AS Rajeev, MD & CEO, observed that the Bank’s target is to increase the advances portfolio to at least ₹1.25 lakh-crore by March-end 2022 against ₹1,07,654-crore as at March-end 2021.

“The envisaged increase in advances of ₹20,000-25,000 crore will absorb around ₹1,500 crore of capital. We will raise another ₹1,000 crore either via Additional Tier-I or Tier-II bonds by March-end 2022,” he said in an interaction with BusinessLine.

The resources raised via QIP and bond routes is expected to take care of the advances growth for the next one to one-and-a-half years. “We posted ₹550 crore net profit in FY21. We are envisaging 25-30 per cent growth in net profit (in FY22). This will also further increase our capital. So, for another two years, we will not require any capital. This is the plan,” Rajeev said.

After the fund raising and plough back of profit, BoM’s capital to risk-weighted assets ratio is likely to go up to 15 per cent by March-end 2022 from 14.49 per cent as at March-end 2021.

Tweaking loan composition

Rajeev underscored that the retail, MSME and agriculture (RAM), and corporate (government guaranteed advances) advances could increase by about ₹15,000 crore and ₹10,000 crore, respectively, so that the retail to wholesale advances ratio in overall portfolio moves to 65:35 as at March-end 2022, against 67:33 as at March-end 2021.

Within emergency healthcare services, BoM’s pharma sector exposure could go up from about 2 per cent of total advances to 4-4.5 per cent. “Funding support is needed by the sector to manufacture Covid-19 related vaccines and medicines,” Rajeev said.

Higher recovery target

BoM is eyeing a higher recovery target of ₹3,000 crore in FY22 against ₹1,644 crore in FY21. “Our target is to bring down Net Non-Performing Assets (NPAs) below 2 per cent by March-end 2022 (from 2.48 per cent as at March-end 2021) and Gross NPAs below 6 per cent (from now 7.23 per cent),” Rajeev added.

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Kerala Financial Corp declares moratorium on MSME loans

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Kerala Financial Corporation, a leading State Finance Corporation, has announced a one-year moratorium on principal to MSME enterprises and a proposal to restructure their loans as per Reserve Bank of India (RBI) guidelines to prevent such accounts from being categorised as non-performing assets.

The scheme is available to loans in the Standard Category till March 31, 2021, on the basis of applications from promoters received until September 30, 2021. No charges or additional interest will be charged for this facility, a spokesman for the financial institution said.

Also read: RBI allows lenders to revamp MSME accounts under Covid-19 related stress

Last year, the Corporation had sanctioned 20 per cent additional loan to customers whose repayments were prompt until March 31, 2020. The second wave of Covid-19 has once again affected the tourism sector and small industries. This has prompted it to offer another scheme for entrepreneurs in these sectors.

Additional loans, top-ups announced

They will be allowed an additional 20 per-cent top-up to their loan in addition to the 20 per cent provided last year, taking the lot cumulatively to 40 per cent, the spokesman said. The scheme has been formulated in line with the Emergency Credit Line Guarantee Scheme (ECLGS) offered by the Centre.

Loans by banks under the ECLGS are guaranteed by the National Credit Guarantee Trust Company. But this is not available to KFC, which has therefore formulated a scheme with more benefits for customers. So, while banks lend only 20 per cent of the outstanding balance in the customer’s account, the State financial corporation lends up to 20 per cent of the disbursed amount, thereby offering a higher amount.

Furthermore, while the Central scheme provides loans only to the tourism sector, Kerala Financial Corporation also includes small enterprises and the healthcare sector under the scheme. It also allows a 24-month moratorium on principal repayment. Since interest is payable during this period as well, customers will have the option of adjusting it against the loan.

The State Finance Minister had announced in the Budget 2021-22 that assistance would be provided to entities manufacturing products helping prevent the spread of Covid-19. Kerala Financial Corporation has come up with a new plan for such ventures, the spokesman said.

Assistance to fight Covid-19 spread

The scheme will be available to all sectors involved in Covid-19 prevention in the field of healthcare ranging from hospitals, laboratories, units involved in oxygen storage and distribution, manufacturing of ventilators, oxymeters, and other life-saving equipment.

Loans up to ₹50 lakh will be covered under the Chief Minister’s Entrepreneurship Scheme at seven per cent with a tenure of five years. For loans above ₹50 lakh, the interest rate will be seven per cent up to ₹50 lakh and interest for the remaining portion will be fixed as per the rating of the entity. Repayment period available is up to 10 years. Up to 90 per cent of the total project cost will be financed under the scheme.

Interest rates slashed

Kerala Financial Corporation has slashed interest rates for loans to healthcare, tourism and MSME sectors with the minimum rate being reduced from 9.5 per cent to eight per cent. The higher-interest rate slab has been reduced to 10.5 per cent from 12 per cent. Interest rates are determined on the basis of the rating of the entity.

The lower interest rate is usually applied from the loan reset date (month of borrowing) of the respective enterprise. But it has been decided that on this occasion, the benefit of lower interest rate will be available to all eligible customers from July 1, 2021.

The Finance minister had also announced that the loan assets of the company would be increased from ₹4,700 crore to ₹10,000 crore in five years and that ₹4,500 crore will be sanctioned during this financial year.

The value of secured assets will be determined as per market value fixed by external valuers in line with the practice of most banks. The sanctioning power of district managers has been enhanced from ₹50 lakh to ₹2 crore. A special cell will be set up at the head office to expedite the approval and disbursement of loans to small entrepreneurs and startups.

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4 Stocks To Buy From Broking Firm Motilal Oswal

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KEC International

The firm believes that the outlook for KEC International is improving and has therefore set a price target of Rs 475 on the stock. The company is India’s second largest manufacturer of electric power transmission towers and one of the largest Power Transmission Engineering, Procurement & Construction companies in the world.

The shares of KEC International were last seen trading at Rs 408 on the Bombay Stock Exchange.

“At the current market price, the stock is trading at 16x/13x FY22E/FY23E EPS. We maintain our Buy rating with a target price of Rs 475 per share (15x FY23E EPS, marginally below its long-term one-year forward multiple of 15.8 times).

According to Motilal Oswal, the order inflow environment is improving, with a robust pipeline. “The momentum in order wins continued into the first quarter FY22, with KEC International winning Rs 30 billion worth orders in FY22 YTD (v/s Rs 7 billion YoY). Tenders under evaluation and in the pipeline stood over Rs 650 billion, thus indicating healthy potential order wins ahead,” the brokerage has said.

LIC Housing Finance

LIC Housing Finance

Motilal Oswal is also bullish on the stock of housing finance company major LIC Housing. According to it, while the growth momentum has been strong, with healthy spreads, LIC Housing Finance has addressed the persistent concern on capitalization, with capital infusion from promoter LIC. However, deterioration in asset quality and elevated credit costs have continued to surprise us negatively, it has said.

“We reduce our FY22E Earnings Per Share estimate by 4% and increase our FY23E EPS by 3% to factor in higher Net Interest Income growth and elevated credit costs. We estimate 1.3%/14% RoA/RoE over the next two years, penciling in likely impact of the preferential allotment of fresh equity shares to the promoter. We maintain our Buy rating, with a price target of Rs 600 per share (1.2x FY23E book value per share),” the brokerage has said.

Shares of LIC Housing were last trading at Rs 493 on the NSE.

CESC

CESC

CESC is the first fully integrated electrical utility company and is generating and distributing power in Kolkata and Howrah. Brokerage firm Motilal Oswal is bullish on the stock and has indicated a price target of Rs 905 on the stock, which is a substantial uptick over the price of Rs 795 that the stock is currently trading at.

According to the brokerage firm, CESC’s existing Distribution business generates high RoE and delivers steady growth. Generation assets generate healthy FCF. We raise our FY22E EPS by 9% to account for higher profitability at Haldia as the new tariff order is delayed. Even as visibility of earnings at Dhariwal improves, we factor in tightening of norms at Haldia and for the standalone entity in FY23E. The stock trades at an attractive 7.2x/6.9x FY22E/FY23E P/E.

“Untied generation capacity and scale-up of DFs have the potential to boost earnings. We value the stock at 8.5x FY22E P/E and maintain Buy with a target price of Rs 905,” the brokerage has said.

Lemon Tree Hotels

Lemon Tree Hotels

Lemon Tree Hotels is another stock, where Motilal Oswal sees a significant up tick and has a buy rating. In fact, the broking firm sees an upside of nearly 23%.

“Revenue grew 39% QoQ in 4QFY21, led by 38% RevPAR growth, aided by a 16.9pp improvement in occupancy. EBITDA grew 42% QoQ due to lower flow-through, as the onset of a second COVID wave was sudden, which impacted demand. The company was unable to reduce expenses immediately. We have lowered our FY22E EBITDA estimate by 43% and have maintained our FY23E EBITDA estimate. We have a Buy rating on the stock with a target price of Rs 52 per share,” the broking firm has said.

Shares of Lemon Tree were last trading at Rs 42.15 on the BSE.

Disclaimer

Disclaimer

The above mentioned stocks have been picked from the brokerage report of Motilal Oswal. The author, the brokerage or Greynium Information Technologies do not take any responsibility for losses that maybe incurred. The above article is for informational purposes only.



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4 Best 5-Year Fixed Deposits With Interest Rates Up To 7.25%

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Suryoday Small Finance Bank Fixed Deposit

Among the small finance banks, Suryoday Small Finance Bank is currently providing the highest interest rates to both regular and senior citizens. For a deposit period of 5 years, the bank is now giving an interest rate of 7.25% to regular customers and 7.75% to senior citizens which are much higher than the interest rates of leading private and commercial banks. For a deposit amount of less than Rs 2 Cr, here are the most recent interest rates on FD of Suryoday Small Finance Bank.

Tenure Regular FD Rates Senior Citizen FD Rates
7 days to 14 days 4.00% 4.50%
15 days to 45 days 4.00% 4.50%
46 days to 90 days 5.00% 5.50%
91 days to 6 months 5.50% 6.00%
Above 6 months to 9 months 6.00% 6.50%
Above 9 months to less than 1 Year 6.25% 6.75%
1 Year to 2 years 6.75% 7.25%
Above 2 Years to 3 Years 7.00% 7.50%
Above 3 Years to less than 5 Years 7.10% 7.60%
5 Years 7.25% 7.75%
Above 5 years to 10 years 6.50% 7.00%
Source: Bank Website, W.e.f. 15.02.2021

Utkarsh Small Finance Bank Fixed Deposit

Utkarsh Small Finance Bank Fixed Deposit

On a deposit amount of less than Rs 2 Cr for a period of 5 years, this small finance bank is now giving an interest rate of 7% to the general public and 7.50% to senior citizens. With effect from October 19, 2020, the below listed fixed deposit interest rates of Utkarsh Small Finance Bank are in force.

Tenure Regular FD Rates Senior Citizen FD Rates
7 Days to 45 Days 3.00% 3.50%
46 Days to 90 Days 3.25% 3.75%
91 Days to 180 Days 4.00% 4.50%
181 Days to 364 Days 6.00% 6.50%
365 Days to 699 Days 6.75% 7.25%
700 Days 7.00% 7.50%
701 Days to 3652 Days 6.75% 7.25%
Source: Bank Website

Jana Small Finance Bank Fixed Deposit

Jana Small Finance Bank Fixed Deposit

Jana Small Finance Bank is currently offering interest rates of 6.75 per cent to the general public and 7.25 per cent to senior people on deposits of less than Rs 2 Cr for a term of 5 years. Here are the current fixed deposit interest rates of Jana Small Finance Bank which are in force from May 7, 2021.

Tenure Regular FD Rates Senior Citizen FD Rates
7-14 days 2.50% 3.00%
15-60 days 3.00% 3.50%
61-90 days 3.75% 4.25%
91-180 days 4.50% 5.00%
181-364 days 5.50% 6.00%
1 Year[365 Days] 6.25% 6.75%
> 1 Year – 2 Years 6.50% 7.00%
>2 Years-3 Years 6.50% 7.00%
> 3 Year- 6.75% 7.25%
5 Years[1825 Days] 6.50% 7.00%
> 5 Years – 10 Years 6.00% 6.50%
Source: Bank Website

Ujjivan Small Finance Bank Fixed Deposit

Ujjivan Small Finance Bank Fixed Deposit

On deposits of less than Rs 2 Cr for a duration of 5 years, Ujjivan Small Finance Bank is now providing interest rates of 6.75 per cent to the general public and 7.25 per cent to senior citizens. Here are Ujjivan Small Finance Bank’s current fixed deposit interest rates, effective from March 5, 2021.

Tenure Regular FD Rates Senior Citizen FD Rates
7 Days to 29 Days 3.05% 3.55%
30 Days to 89 Days 4.05% 4.55%
90 Days to 179 Days 4.80% 5.30%
180 Days to 364 Days 5.20% 5.70%
1 Year to 2 Years 6.50% 7.00%
2 Years and 1 Day to 3 years 6.75% 7.25%
3 Years and 1 Day to 5 Years 6.75% 7.25%
5 Years and 1 Day to 10 Years 5.80% 6.30%
Source: Bank Website

Conclusion

Conclusion

The first step in selecting a fixed-term deposit option is to evaluate the interest rates offered by different lenders. The interest rate is decided by a number of criteria, such as the amount of the deposit, type of applicant, i.e. regular citizen or senior citizen, and the period chosen. Small Finance Bank FDs are also insured by DICGC deposit insurance of Rs. 5 lakh, which lowers the security aspect of the investors, particularly for senior citizens. Hence, investing in Small Finance Bank Fixed deposits can be a secure investment choice for risk-averse individuals looking for a consistent way to increase their wealth. You will not only hold the highest FD rates, variable tenures, and periodic payouts option, but you will also receive assured returns that are not influenced by market volatility.



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RBI sees Rs 2 lakh crore hit from Covid; medical spends depleting deposits, cash fast, BFSI News, ET BFSI

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The Reserve Bank of India has estimated that the second wave may result in a Rs 2-lakh-crore loss in output during the current fiscal even as it said speed and scale of vaccinations will determine economic recovery.

The RBI’s output loss is factored into its revised GDP forecast in the latest monetary policy estimates, where it slashed growth projections from 10.5% to 9.5%.

The projection was on the assumption that real GDP will grow by 18.5% in the first quarter, which is on a much lower base given the contraction last year.

“By current assessment, the second wave’s toll is mainly in terms of the hit to domestic demand. On the brighter side, several aspects of aggregate supply conditions – agriculture and contactless services are holding up, while industrial production and exports have surged amidst pandemic protocols,” the central bank said.

A loss of economic output may not have a direct corelation with the GDP, but points to some loss in the value-addition across the economy, it said.

Deposits, cash depleting

The RBI said the rate of decline in deposits has been higher, indicating that household savings have dropped in sharp contrast to the first wave. “Additionally, currency holding with the public has also decelerated significantly to 1.7% during April 2021 in comparison to the growth of 3.5% a year ago, implying heavy outgo towards Covid-induced medical expenditure.”

The move ahead

The report highlights the advantages of repurposing and reprioritising revenue and expenditures to extract “bang for the buck”. The report said that the public sector can lead the private sector in unlocking growth opportunities. In addition, it can partner the private sector, and step back to allow the private sector to take the lead in sunrise areas.

“While has tested the limits of flexibility in fiscal policy frameworks in India as in the rest of the world, it has offered a unique opportunity to redefine fiscal policy in a manner that emphasises ‘how’ over ‘how much,” the report said.

The report, authored by RBI deputy governor M D Patra highlights the finance ministry estimates that to achieve herd immunity and regain recovery momentum, the target population to be vaccinated is 70 crore by September 2021 and around 113 crore more doses are needed. Accordingly, around 93 lakh vaccinations are required per day to achieve the herd immunity.

Covid wave weakening

RBI observed that the second wave is rolling back almost as fast as it rolled in. On June 14, the daily cases fell to a seventh of their peak of 4,14,188 a month ago (May 6). The seven-day average, which smooths out daily fluctuations, also declined by a fifth from its peak of close to 4 lakh. This is also reflected in the doubling rate, which increased to 247 days from its trough of 34 days at the end of April.

Supply bottlenecks

While the surge in inflation may have a lot to do with pandemic base effects, it is also fuelled by years of underinvestment having made the supply response less dynamic, exacerbated by supply chain bottlenecks, the RBI said. “In this situation, monetary policy is hostage to its own stance and loose financial conditions that it creates will cause excessive risk taking in markets even as inflation migrates upwards,” it said.



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Surplus transfer: RBI can be characterised as ‘free-ranging’ goose, says article

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The Reserve Bank of India (RBI) can be characterised as a ‘free-ranging’ goose from the point of the surplus transfer alone, according to an article in the central bank’s latest monthly bulletin.

Referring to the findings of a comprehensive research on central banking in developing countries (Fry, Goodhart and Almeida, 1996), the article said: “In flow terms, we can think of the central bank as the government’s golden goose.

“With an unimpaired balance sheet, the free-range goose conducting conservative monetary policy with a fair degree of independence, produces golden eggs in the form of seigniorage worth 0.5 to 1 per cent of GDP.”

Seigniorage is the profit accruing to the issuer of legal tender, mainly as a result of the difference between the material costs of producing currency and its face value.

The observations in the article ‘State of the Economy’, put together by RBI officials, including Deputy Governor MD Patra, came in the context of the surplus transferred to the government raising considerable heat and dust in the media.

The Reserve Bank of India’s Central Board, on May 22 approved the transfer of ₹99,122 crore as surplus to the Centre for the accounting period of nine months ended March 31, 2021 (July 2020-March 2021). This was 73.50 per cent higher vis-a-vis the ₹57,128 crore transfer approved in the accounting year 2019-20.

The surplus, mainly stemming from saving on balance sheet provisions and employees’ superannuation and other funds, constitutes just 0.44 per cent of GDP (which is taken as a measure of seigniorage), the article said.

In 2020, the transfer of surplus from RBI to the Government was 0.29 per cent of GDP.

Further referring to research by Fry, Goodhart and Almeida, the article said the “battery farm goose”, bred specially for intensive egg-laying, can produce golden eggs in the form of inflation tax yielding 5 to 10 per cent of GDP.

“The ‘force-fed goose’ can produce revenue of up to 25 per cent of GDP for a limited period before its inevitable demise and collapse of the economy.

“All three forms of central bank geese have been sighted in recent years,” the article said.

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7 Best Cement Stocks To Invest With Top PE And EPS Fundamentals 2021 in INdia

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Importance of PE And EPS Fundamentals in Stocks

Even if you do not adopt the key valuation ratios, it is typically advisable to have a solid knowledge of them in order to follow and better understand stock prices. The price-to-earnings ratio (P/E) and earnings per share (EPS) are two important terms.

Earnings per share: The net income received by the corporation is divided by the number of outstanding shares issued to arrive at this figure.

The Earnings per Share is calculated by dividing a company’s profits or earnings by the total number of outstanding shares of stock (ttm). The abbreviation EPS refers for Earnings per Share, and the “ttm” refers for Trailing Twelve Months. This means that EPS (ttm) represents the company’s overall earnings or profits for the previous 12 months.

P/E ratio: The P/E ratio is calculated by dividing the stock price by the earnings per share.

For example, if a stock’s current price is Rs. 100 and it has earned Rs. 5 per share (EPS) for its shareholders in the last 12 months, the stock’s current price is Rs. 100. The P/E ratio is calculated as 100/5=20.

It is not suggested to purchase stocks with high PE ratios, which indicate that the company is overvalued, because the stock could ruin your wealth to the point of no recovery if and when the stock falls.

Cement Sector Outlook

Cement Sector Outlook

Cement businesses in India reported a strong increase in profitability in the second quarter of FY21, as demand for the industry grew due to rural revival. The demand outlook remained solid as the rural markets normalized. CLSA anticipates a 14% YoY increase in EBITDA in the cement sector for its coverage stocks in FY21. Due to increased demand in various areas like as housing, commercial development, and industrial expansion, the cement industry is expected to reach 550-600 million tonnes per annum (MTPA) by 2025..

Cement Growth Stocks: Shree Cement

Cement Growth Stocks: Shree Cement

Shree Cement was established in 1979, and company headquarters are in Kolkata. Shree Cement is regarded as India’s third-largest cement company. Bangur Cement and Rokcstrong Cement are two brands owned by Shree Cement. Up until 2014, the company’s capacity was concentrated in northern India, but it has since expanded to include Rajasthan, Uttarakhand, Bihar, Chhattisgarh, Haryana, Uttar Pradesh, and Karnataka. Stock gained 74.76 percent over three years, compared to 44.34 percent for the Nifty 100 index. It is a Large Cap firm in the Cement sector with a market cap of Rs 102,779.26 Crore. The company is one of the most prolific in the cement sector. Despite the entrance of new cement players through recent inorganic techniques, Shree Cements maintains its dominant position in northern regions.

HIL

HIL

HIL Ltd., founded in 1955, is a Small Cap business in the Building Materials industry with a market cap of Rs 3,487.63 crore. The company reported a Consolidated Total Income of Rs 846.98 Crore for the quarter ended 31-03-2021, up 4.72 percent from the previous quarter’s Total Income of Rs 808.82 Crore and up 30.14 percent from the same period last year’s Total Income of Rs 650.84 Crore. In the most recent quarter, the company generated a net profit after tax of Rs 62.73 crore. Stock returned 131.7 percent over three years, compared to 26.45 percent for the Nifty Smallcap 100.

Ultratech Cement

Ultratech Cement

The company Ultratech Cement was founded in 1983 and is headquartered in Mumbai, India. Ultratech Cement is the country’s largest grey cement producer. It is widely regarded as the best cement producer in the country. This company is a subsidiary of the Aditya Birla Group and is one of the top companies in the cement industry. On a quarterly and annual basis, the company recorded an increase in total income. The total income for the March 31, 2021 quarter was Rs 14465.94 crore, up 15.52 percent quarter on quarter and 32.19 percent year on year.

The company operates in nations such as the United Arab Emirates, Bahrain, Sri Lanka, and Bangladesh. The firm is also a major producer of RMC and white cement.

Cement Growth Stocks: ACC

Cement Growth Stocks: ACC

With a pan-India operating and marketing presence, ACC Limited is a significant participant in the Indian building materials business. The company was formerly known as Gujarat Ambuja Cements Ltd, but was later renamed Ambuja Cements Ltd. Holcim, a worldwide cement company, took over management control of the company in 2006. Holcim currently owns a bit more than half of ACL. The company ACC Cement was formed in 1936 and is headquartered in Mumbai, India. The Associate Cement Company was once known as ACC cement. It is one of the leading cement manufacturing companies in the country.

Cement Growth Stocks With Highest EPS Fundamentals

Cement Growth Stocks With Highest EPS Fundamentals

Company Stock Price Market Cap EPS (TTM) in Rs
Shree Cement 28,165.90 1.02LCr 633.54
HIL 4,572.05 3,425.63 346.68
Ultratech Cement 6,587.40 1,90,148 186.78
ACC 2,020 37,942.42 88.92

Cement Growth Stocks With Highest EPS Fundamentals

Cement Value Stocks: NCL Industries

Cement Value Stocks: NCL Industries

The top Cement stocks with the best accessible price-earnings ratio are listed below (trailing).

NCL Industries Ltd., founded in 1979, is a Small Cap business in the Cement sector with a market capitalization of Rs 978.61 crore. The company reported a Consolidated Total Income of Rs 370.92 Crore for the quarter ended December 31, 2020, up 6.10 percent from the previous quarter’s Total Income of Rs 349.59 Crore and up 77.30 percent from the same quarter last year’s Total Income of Rs 209.21 Crore. In the most recent quarter, the company generated a net profit after tax of Rs 41.59 crore. Stock returned 20.35 percent over three years, compared to 26.45 percent for the Nifty Smallcap 100. The company has give Rs 4 as dividend per share.

JK Cements

JK Cements

JK Cement is a high-end firm that specialises in high-quality cement. This cement company has a large client base all over the country and is rapidly increasing its commercial boundaries. The JK cement PE ratio stands at 30.61.

Deccan Cement

In India, Deccan Cements Limited produces and sells cement. Ordinary Portland, Portland pozzolana, and Portland slag cement are available, as well as specialty cement such as rapid hardening, sulfate resistance, high alumina, and oil well cement, as well as 53-S grade ordinary Portland cement, which is used in railway applications. The Deccan cement PE ratio stands at 6.78.

10 Best Cement Stocks By Market Capitalizaton

10 Best Cement Stocks By Market Capitalizaton

Company Last Price Market Cap(Rs. cr)
UltraTech Cement 6,585.70 190,098.47
Shree Cements 28,233.10 101,867.14
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JK Lakshmi Cem 560.00 6,589.52
India Cements 191.45 5,932.98
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Disclaimer

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Millennials are killing it… Don’t LOL, BFSI News, ET BFSI

Personal Finance

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– By Tarika Sethia

They are not just young but their choices are too unusual. While the traditional investors are still confused over cryptocurrency, millennials have already found solace in it.

Millennials investing in crypto

Vartika, a 28-year-old girl living in Mayur Vihar, Delhi, has seen hundreds of videos on YouTube which are related to cryptocurrency investments. She has invested in bitcoin and also made some money.

“I understood what cryptocurrency is by watching videos and decided to invest in it,” she said.

Around one crore investors are holding over $ 1 billion of cryptocurrency investments in India and the majority of them are millennials.

About 62% of users at WazirX, India’s biggest cryptocurrency exchange, are below 34 years of age. According to CoinDCX’s report titled ‘Mood of the Nation- 2020’, 71% of respondents below the age of 35 had invested in crypto at least once.

According to the CNBC Millionaire survey, more than 33% of millionaire investors belonging to the millennial generation have over half their wealth in cryptocurrencies. As mainstream and quotidian as it gets, it becomes essential to ask why some Indian millennials are throwing all their savings into a volatile virtual currency that they cannot afford to lose or is it just an alternate investment.

Cryptocurrency and Millennials

All these numbers shed light on the curious eyes of the millennial demography. The notion of crypto being a young person’s asset choice isn’t a farce. However, the question remains, why? While the equity markets were touching fresh lows each day during the Covid lockdown in 2020, cryptocurrencies kept rallying. It was 2020 when many began surfing the crypto wave. Work from home expanded the opportunity to do more than just work and allowed some free time to people leading to huge clamour for ‘meme’ stocks on social media. Fear Of Missing Out (FOMO) has made millennials dash for a chunk of the crypto pie.

Two things are attracting millennials towards cryptocurrencies. First, everything is digital and can be processed seamlessly on the smartphone. Second, it fetches high returns which no other asset class seems to offer.

“I have done my calculations. There are high chances that I will earn far more than what I invest,” said Syed, a 25-year-old intern in a private company.

Living in a digital world, convenience leaves millennials drooling. With copious platforms emerging for crypto trading and each one of them innovating to provide a better user experience, investing and trading has become easier. Brisk KYC to instant crypto purchases, investing in digital currency has become swift and seamless. It is the gift of having everything at your fingertip.

Millennials are not risk-averse

With skyrocketing growth and hard-hitting falls, cryptocurrencies are not for the risk-averse. Millennials are still young enough to afford risking a part of their investment into highly oscillating asset classes, as advised by financial advisors and influencers on Instagram and YouTube. This isn’t very fresh advice but has always lingered in the investment world. However, now it has welcomed a new asset class. This ideology served with the appeal of building wealth faster encourages this bracket to run towards crypto.

Cryptocurrency and regulations

Neither the government nor the regulator has taken any firm stand on cryptocurrencies yet. The crypto exchanges are trying their best to convince the regulator. While India’s central bank has clearly stated that they have issues against cryptocurrency, the Finance Ministry has a different view.

“We want to make sure there is a window available for all kinds of experiments which will have to take place in the crypto world. The world is moving fast with technology. We cannot pretend we don’t want it,” said, Nirmala Sitharaman, Finance Minister.

Cryptocurrency and Global Push
The virtual currency has been dancing over tweets and has even attracted eyeballs of governments from El Salvador to India.

The curiosity about crypto is all over the world. It reached a new high when Tesla founder Elon Musk joined the race. In fact, after a drastic fall, Bitcoin soared this week after Musk’s tweets again favour the crypto.

Moreover, the European Investment Bank (EIB) issued its first digital bond on the Ethereum blockchain, in April this year. Richard Teichmeister, the head of funding at the EIB called the blockchain technology “revolutionary”. Dogecoin that started as a meme currency shot up in value when the tech billionaire Elon Musk tweeted about it.



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