Month: August 2021

1. Federal Bank: Buy for gains of 32%

Angel Broking is bullish on Federal Bank, an old generation private sector bank, for potential gains of 32%. The target price set out on the scrip is Rs. 110 while its last traded price is Rs. 83.3

Asset quality was managed well despite Covid second wave in Q1Fy22

The banker despite the second Covid wave has posted decent Q1FY 22 results with NI/ PPOP increasing by 9.4%/21.8% YoY. Provisioning for the period however went up by 22% YoY, impacting PAT, which declined 8.4% YoY. Asset quality somewhat saw a drag, nonetheless considering the acute Covid second wave, the banking entity held it well during the period under review. “We expect asset quality to improve from Q2FY22 given continued opening up of the economy. We expect the Federal bank to post NII/PPOP/PAT growth of 22.8%/23.7%/23.2% between FY20-23 and remain positive on the bank”, said the broking firm in its report.

Key financials

2. HDFC bank: Buy for 23% gains

Another stock pick from the banking space by Angel Broking is the country’s largest private sector banking entity, HDFC Bank. Angel Broking has given a price target of Rs. 1859, implying an upside of over 22% from the last traded price of around Rs. 1516.

Loan segment registered growth by 14% YoY pushing NII, PPOP and PAT higher for the Q1FY22 period

Asset quality at the bank suffered owing to the Covid second wave backdrop, nonetheless the bank logged growth in NII, PPOP and PAT of 8.6%/18.0%/16.1% for the quarter under review despite higher provisioning, helped by loan growth of over 14% YoY for the June ended quarter of FY22. NIM also saw a decline on a sequential basis owing to change in product mix and interest reversals. Furthermore, despite the loss of 35-40 days of collections, the management at the bank expects good recoveries from slippages in the second quarter that should probably cut down on credit costs going ahead.

“Given best in class asset quality and expected rebound in growth from Q2FY22 we are positive on the bank given reasonable valuations at 3.0xFY23 adjusted book which is at a discount to historical averages”, added the brokerage.

Financials

3. Shriram City Union Finance: Buy for 8% gains

Angel Broking has recommended a ‘Buy’ on the NBFC, Shriram City Union Finance that lends to small businesses, involving high margin. Furthermore, the firm extends auto, 2-wheeler, gold, and personal loans. Angel Broking expects the stock to hit a target of Rs. 2100 i.e. an 8% gain from the scrip’s last traded price.

Asset quality threw a positive surprise in Q1FY22, profits improved, provisioning went down during the quarter

Aided by an improved asset quality scenario, the company posted good quarterly numbers for the June ended quarter of FY22.. NII went higher by 5.23% YoY to Rs. 920 crore while PPOP was up by 0.4% YoY to Rs. 569 crores. Provisioning reduced by over 6% and hence profitability inched higher by 8% YoY.

“Shriram City Union reported a strong 30% sequential decline in disbursement for the quarter which led to flattish AUM at ~ Rs. 29,599 crore. The company reported only marginal deterioration on asset quality front as Gross stage 3 loans increased by 54bps qoq to 6.91% while net stage 3 for the quarter increased to 3.46% while PCR ratio stood at 49.9%”, noted the brokerage.

Financials

Disclaimer:

The above stocks are taken from the brokerage report of Angel Broking and need not be taken as investment advice. Equities are trading at record highs and you need to evaluate your own financial standing, risk profile,goals- both short term and long term, before taking any investment call.

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Tata Motors

Tata Motors, part of the Tata Group, is an Indian multinational automotive manufacturing corporation located in Mumbai, Maharashtra. Passenger cars, trucks, vans, coaches, buses, sports cars, construction equipment, and military vehicles are all manufactured by the firm.

The stock gained 17.6 percent over three years, compared to 43.51 percent for the Nifty 100. t to investors. Over a three-year period, the stock returned 17.6 percent, while the Nifty Auto returned -6.03 percent to investors. The stock has returned 145 percent in the last 12 months. Since July 3, 2002, Tata Motors Ltd. has issued 15 dividends.

The passenger car market is up with a 25 percent MoM increase and 101 percent YoY growth, demonstrating that the company’s footing in the domestic automobile segment has not eroded.

Tube Investments

Tube Investments, founded in 2008, is a Consumer Durables-focused Mid Cap business with a market capitalization of Rs 24,382.19 crore. The stock returned 375.39 percent over three years, compared to 43.59 percent for the Nifty Midcap 100. The stock has returned 115 percent in the last 12 months.

Since February 22, 2018, Tube Investments of India Ltd. has declared 7 dividends.

Tube Investments of India Ltd. has issued an equity dividend of Rs 3.50 per share in the last 12 months. This translates to a dividend yield of 0.28 percent at the current share price of Rs 1251.95.

Ashok Leyland

Ashok Leyland is a Chennai-based Indian multinational automobile company. The Hinduja Group owns the property. It began as Ashok Motors in 1948 and changed its name to Ashok Leyland in 1955. Ashok Leyland gets a buy call from Motilal Oswal with a target price of Rs 155. Ashok Leyland Ltd. is currently trading at Rs 130.05.

When Ashok Leyland price reaches the defined target, the analyst estimates it will take one year. The stock has returned 104 percent in the last 12 months. Only 3.11 percent of trading sessions in the last 16 years had intraday drops of more than 5%. Since June 18, 2001, Ashok Leyland Ltd. has issued 20 dividends.

Disclaimer

The views and investment tips expressed by authors or employees of Greynium Information Technologies, should not be construed as investment advise to buy or sell stocks, gold, currency or other commodities. Investors should certainly not take any trading and investment decision based only on information discussed on GoodReturns.in

SBI ‘WECARE’ Senior Citizens’ Term Deposit Scheme

Senior citizens will receive additional interest on their term deposits if they invest for a tenor of 5 to 10 years under this deposit scheme of State Bank of India (SBI). They will be paid an additional rate of 30 basis points over and above the existing premium of 50 basis points over the public card rate, for a total of 80 basis points over the public card rate. The interest will be paid on a monthly or quarterly basis.

This scheme is applicable to new deposits as well as renewals of maturing deposits, and TDS will be levied in accordance with the Income Tax Act. SBI now provides a 5.4 percent interest rate on five-year FDs to the general public. Senior citizens will receive a 6.20 percent interest rate on deposits of less than Rs 2 crore under the special FD scheme. SBI’s current fixed deposit interest rates for senior citizens can be found here.

HDFC Bank Senior Citizen Care FD

Senior Citizens who make a deposit of less than 2 crores for a duration of 5 (five) years 1 day to 10 Years during the special deposit offer beginning from 18th May’20 to 30th Sep’21 will receive an additional premium of 0.25 percent over and above the existing premium of 0.50 percent. During the aforementioned duration, this special deal will be available to new fixed deposits as well as renewals.

Non-Resident Indians are not eligible for this special fixed deposit scheme of HDFC Bank. If a term deposit made under the scheme is prematurely closed, including sweep-in / partial closure, on or before 5 years, the interest rate will be 1.00 percent lower than the contracted rate or the base rate applicable for the term the deposit has been with the bank, whichever is lower.

The interest rate will be 1.25 percent below the contractual rate or the base rate applicable for the duration the deposit has stayed with the bank, whichever is lower, if a term deposit made under the scheme is prematurely closed, including sweep-in / partial closure after 5 years by a senior citizen. The most recent senior citizens’ fixed deposit interest rates of HDFC Bank are listed below.

ICICI Bank Golden Years Fixed Deposit

Senior citizens will get an additional interest rate of 0.30 percent per year on their fixed deposits of 5 years 1 day up to 10 years under this special fixed deposit scheme, in addition to the prevailing additional rate of 0.50 percent per year. During the scheme’s existence, the additional rate will be offered on both new and renewing deposits.

The special fixed deposit scheme of ICICI Bank will be available until October 7, 2021. Only deposits of less than Rs 2 crore are eligible under this scheme. The applicable penalty rate will be 1.30 percent if a deposit made under the scheme is prematurely withdrawn/closed on, or after 5 years 1 day.

If a deposit opened under the special deposit scheme is withdrawn or closed before 5 years and 1 day, the current premature withdrawal rule will apply. Interest rates on fixed deposits for senior citizens of ICICI Bank are mentioned below.

Bank of Baroda Special Fixed Deposit Scheme

Bank of Baroda (BoB) offers an additional rate to senior citizens for a deposit amount of less than Rs 2 Cr. However, under the special fixed deposit scheme, elderly persons would get an extra rate of 1.00 percent for tenors of “Above 5 years to up to 10 years,” which will be valid until September 30, 2021.