For the past three years, the company has posted a negative return on investment (ROI). Pan Electronics India Ltd., founded in 1982, is a Small Cap business in the Electric/Electronics sector with a market capitalization of Rs 11.78 crore. The company spent Rs 2.26 crore on investing activities, a rise of 846.62 percent year over year.
Pan Electronics’ stock price has risen by an astonishing 390 percent so far in 2021. The stock had a one-year return of 292 percent.
Tamilnadu Telecommunications
Tamilnadu Telecommunications, founded in 1988, is a Small Cap business in the Cables sector with a market capitalization of Rs 49.11 crore. For the fourth quarter in a row, the company has lost Rs 2.74 crore. The stock returned 1089.47 percent over three years, compared to 43.89 percent for the Nifty Smallcap 100.
The stock price of Tamilnadu Telecommunications has soared by an incredible 411 percent so far in 2021. The stock returned 551 percent in a year.
Hindusthan Urban Infrastructure
Hindusthan Urban Infrastructure, founded in 1959, is a Small Cap business in the Electric/Electronics sector with a market cap of Rs 815.23 crore. In the fiscal year ended March 31, 2021, the company spent 7.58 percent of its operating revenues on interest charges and 4.93 percent on labor costs. Over a three-year period, the stock returned 548.39 percent, compared to 43.89 percent for the Nifty Smallcap 100 and 51.81 percent for the S&P BSE Industrials.
So far in 2021, the stock price of Hindusthan Urban Infrastructure has risen by an amazing 280.38 percent. In a year, the stock increased by 553.62 percent.
Olectra Greentech
Olectra Greentech, founded in the year 2000, is a Small Cap business in the Electric/Electronics sector with a market cap of Rs 3,105.52 crore. Revenue fell by 70.7 percent on a quarter-over-quarter basis, the lowest level in the last three years. The stock returned 35.83 percent over three years, compared to 43.89 percent for the Nifty Smallcap 100. Over a three-year period, the stock had a 35.83 percent return, compared to 51.81 percent for the S&P BSE Industrials.
So far in 2021, the stock price of Hindusthan Urban Infrastructure has risen by an amazing 186.85% percent. In a year, the stock increased by 470.23% percent.
4 Electricals Sector Stocks Gained Up To 400 Percent In 2021
Stocks
Gains (YTD)
Tamilnadu Telecommunications
411.90%
Pan Electronics
366.67%
Hindusthan Urban Infrastructure
286.34%
Olectra Greentech
201.18%
Disclaimer
Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution. Greynium Information Technologies, the author, and the brokerage houses are not liable for any losses caused as a result of decisions based on the article.
What is your view on the equity market at current levels, and what are you advising your clients now? Our position on equities is neutral, but we are not shying away from taking bets. Within equities, we are advising clients to allocate some money to international stocks and passive investments. Our views shared here should not be construed as investment advice. It is a general broad-based view based on the current environment. Specific advice to customers on asset allocation depends on risk profiling of individual customers and the suitability of products to them.
What investment strategy did you follow in the last 18-20 months? At Kotak Investment Advisors Limited (KIAL), which runs our Private Wealth – Investment Advisory practice, we have kept our positions fairly neutral, fairly sector agnostic, and theme agnostic; instead, we took some larger macro calls, which has held us in good stead. KIAL took three big calls overall as a firm. The first call we took was to diversify into international markets. The regulator has progressively eased Asset Management Company (AMC) limits into overseas funds, and now it is set at US$1 billion per mutual fund house.
We have seen huge interest from investors to take exposure to US technology stocks and other international markets. KIAL was one of the first houses to recommend to investors to diversify their portfolio to global equities. Currently, we have a call for 20% exposure to international markets, and we will continue to hold this approach for some time.
The other big call that we made fairly early on was on technology-enabled and new-age companies. We have an almost 15% allocation within the equities allocation towards some progressive new-age tech companies. The third and final macro call, which we are seeing unfolding big time, is entering ETFs or passive funds in an investor’s portfolio.
What’s the rationale behind investing in the international market? Our model portfolio has a 20% allocation of an investor’s equity portfolio to international investments, which can be split between the US (two-thirds), China, and Europe (one-thirds). The Indian markets have performed exceptionally well, but if you look at the last ten years, US equity returns have outperformed the Indian market. Over ten years, the Nasdaq index has given returns of 21.4% (in dollar terms) vis-à-vis the Nifty 50 total return of 14.5% in rupee terms. Record-low interest rates and stimulus packages worldwide have pushed global equities to all-time highs during the pandemic.
Do you see an appetite for new ETFs and ESG based investment in India? Investors are asking whether they should be looking at passive funds or active funds. Our response has always been that it is not one; passive and active strategies complement each other. We are also recommending Smart Beta ETFs such as Low Volatility 30 and Momentum. A combination of these two Smart Beta ETFs can serve investors well. A very efficient platform at a fraction of the cost. While ESG investments are still at a nascent stage in India but picking up. Millennials, professionals, and businesspeople – all client profiles- are interested and enquiring about ESG. While we have a long way to go, at KIAL, we have started initial work on this and can give investors factual information on how their portfolios score on ESG.
After the new regulations, how has Kotak’s advisory business model changed? The regulations have paved the way for the industry to offer high-quality advice to clients, and the focus is on what is right for you as an investor. For the advisory business, which is run out of Kotak Investment Advisors Limited (KIAL), we are looking at broader trends in what will shape the country in the years to come and using that to offer clients a high quality and differentiated advice. We feel competence and cutting-edge technology will play a pivotal role in giving investors a high-quality advisory experience. Advisory as a practice removes any perceived conflicts, allowing investors to access a wide range of solutions and trends than specific products.
Can you tell us something about the Pre-IPO Fund launched recently? The supply of good quality companies in the technology space is limited, so we raised a fund to get a more significant share. The pre-IPO fund will mainly invest in technology-enabled companies that are looking to list in the near term. KIAL has already announced the first close and has made a couple of investments as well. We don’t want to raise additional capital just for the sake of raising money. Instead, we will first get a sense of the quality of supply available, and only then will we raise additional demand.
Healthcare startup Hexahealth on Tuesday said it has raised ₹33 crore in funding led by impact investor Omidyar Network and Chiratae Ventures.
The seed funding round, which aims to transform surgery experience for patients, also saw participation from 3one4 Capital, while healthcare professionals like Viren Shetty, Rohit MA and Rehan Khan of Merck India have come in as angel investors, as per a statement.
“Once a patient has been recommended surgery, they struggle with the next steps. Surgery is a stressful time for the patient when they need maximum support,” its Co-founder Ankur Gigras said, adding the company aspires to be the one-stop platform to cater to a patient’s hospitalisation.
The statement said about 2 crore surgeries are performed in India annually, and multiple surveys show that people’s trust in our healthcare system is decreasing, primarily driven by the lack of information, which illustrates the market opportunity.
“We are inspired by Hexahealth’s vision to become the most trusted platform to digitise surgery-related decision making and make quality and affordable hospitalisation care available to millions of Indians,” Omidyar’s principal Aditya Misra said.
Market opportunity
Misra pegged the market opportunity at $80 billion, which is 60 per cent of the overall healthcare spends.
“Technology allows for a patient to be at the centre of healthcare delivery is a thesis that we strongly believe in. Hexa’s vision of wanting to transform the patient experience for hospitalisation and surgeries combined with the strong execution history of the founding team makes this an exciting investment for us,” Ranjith Menon, executive director of Chiratae Ventures, said.
Discussing the best LIC plans for the young population in India starts with the LIC Jeevan Labh policy, which is a LIC Endowment plan. It meets this policy offers both needs for life coverage and lump sum savings under a single investment plan. When a young person is signing up for LIC, she/he will certainly consider the insurance angle, because if the insurance facility is not very lucrative and only the saving plan is good, then LIC will not be a good choice. For saving money, systematically or randomly, there are numbers of other plans in the FD, bond or equity, and mutual fund segments. Also, the tax savings factor is another point to look out for under LIC plans. So, here GoodReturns will discuss why is the LIC Jeevan Labh plan is popular among the young demographic of India, keeping in mind the insurance coverage and maturity benefits.
LIC’s Jeevan Labh policy
The LIC Jeevan Labh, a limited premium paying, and non-linked investment policy is a preferred choice because of its flexibility of payment and long-term insurance coverage. This policy’s premium paying term (PPT) is distinguished into 3 options, – 10 years, 15 years, and 16 years with total term periods of 16 years, 21 years, and 25 years, respectively. That means if one is paying the premium (as PPT) for 10 years, the total term period with insurance coverage will be active for 16 years. Similarly, with 15 years of PPT, the policy will be active for 21 years, and with 16 years of PPT, the policy will be active for 25 years. To get the utmost return from LIC from this plan, paying the full premium in the PPT is suggested.
The minimum entry age of this policy is 8 years completed and the maximum entry age is 59 years, with a maximum maturity age of 75 years. The minimum sum assured of the total amount payable within the PPT is Rs. 2,00,000 with no upper limit depending on the income levels. This plan takes care of liquidity needs through its loan facility.
Benefits on death
If the subscriber dies within the total term, the nominee will get the paid premium with the insurance coverage. In case of accidental death, the insurance coverage is double the natural death coverage amount. LIC states that in case of death during the policy term, provided all due premiums have been paid, death benefit, defined as – the sum of Sum Assured on Death, vested Simple Reversionary Bonuses and Final Additional Bonus, if any, shall be payable. Sum Assured on Death is defined as the higher of 7 times of annualized premium or Absolute amount assured to be paid on death, that is the Basic Sum Assured. However, this death benefit shall not be less than 105% of all the premiums paid as of the date of death. These premiums do not include any taxes.
Benefits on maturity
The maturity benefit of this plan is quite lucrative than any other plan offered by LIC. Sum Assured on Maturity is equal to the Basic Sum Assured, along with vested Simple Reversionary bonuses and Final Additional bonus (if any) will be paid by LIC in a lump sum on survival to the end of the policy term. However, all due premiums should be paid within the PPT. In the 1st year the premium will attract 4.5% tax, from the second year till last, it will attract only 2.25% tax.
Here are 3 calculation charts, that will show approximate premium amounts with different possible sum assured, their maturity and death benefits – with 3 different terms and PPT (entry age 30).
Chart 1: Jeevan Labh premium and maturity chart (25 years term, 16 years PPT)
Sum assured (INR)
1st year premium (yearly)
From 2nd year premium (yearly)
Death-sum assured
Basis sum assured
Approximate Return at the time of maturity
200000
9817
9605
200000
200000
525000
400000
19632
19210
400000
400000
1050000
600000
28665
28048
600000
600000
1575000
1000000
47514
46491
1000000
1000000
2625000
Chart 2: Jeevan Labh premium and maturity chart (21 years term, 15 years PPT)
Sum assured (INR)
1st year premium (yearly)
From 2nd year premium (yearly)
Death-sum assured
Basis sum assured
Approximate Return at the time of maturity
200000
11516
11268
200000
200000
404800
400000
23032
22536
400000
400000
809600
600000
33765
33038
600000
600000
1214400
1000000
56013
54807
1000000
1000000
2024000
Chart 3: Jeevan Labh premium and maturity chart (16 years term, 10 years PPT)
Sum assured (INR)
1st year premium (yearly)
From 2nd year premium (yearly)
Death-sum assured
Basis sum assured
Approximate Return at the time of maturity
200000
17805
17421
200000
200000
333000
400000
35609
34843
400000
400000
666000
600000
52630
51497
600000
600000
999000
1000000
87456
85573
1000000
1000000
1665000
These calculations have been done by GoodReturns, through the ‘All in one CALC’ mobile application, available in the android play store. An investor can check LIC’s all plans and their benefits from anywhere through this particular mobile application if interested to explore other LIC plans.
This chart calculation clearly shows why this term policy is popular among the young population – because of its lucrative lump sum amount at the time of maturity. Premium paid under this plan will be eligible for a tax rebate, under section 80c. If the subscriber is in his/her 30s, the 25 years policy will be over at the age of 55. At that old age, this lump sum will help to secure the rest of the life, while even after the end of PPT, the insurance coverage will be active. In case of death, the nominee will receive the money with sum and coverage. The life insurance angle is a very significant point for signing up under LIC plans. However, with a lower or young entry age, the chance of death is eventually lower. So, the lump sum will be like a good systematic saving for the subscriber. Maturity under this plan will be free from income tax, under section 10(10D).
As a note: either the investor can choose the ’25 years term, 16 years PPT’ option or the ’16 years term, 10 years PPT’ option. The middle segment, in terms of better benefits, can be easily replaced by the 16 years PPT option.
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Story first published: Tuesday, September 14, 2021, 14:21 [IST]
Punjab & Sind Bank (PSB), a public sector bank, has entered into a strategic co-lending alliance with Indiabulls Commercial Credit and Indiabulls Housing Finance (IHFL) for MSME and Priority Sector Housing Loans respectively.
Commenting on the partnership, S Krishnan, MD & CEO of PSB said that the co-lending model will improve the flow of credit to the unserved and underserved sector of the economy and make available funds to the ultimate beneficiary at an affordable cost, considering the lower cost of funds from banks and greater reach of the NBFCs/ HFLs.
He also said that the co-lending model would help the bank enhance its Retail and MSME portfolio and boost lending to MSME sector, which will aid the growth of the economy and employment generation.
Kollegal V Raghvendra, Executive Director said that the model is one of the innovative avenues of lending to the priority sector. The partnership would make available cheaper loans to the borrowers as compared to standalone loans given by NBFCs.
Sri Lankan President Gotabhaya Rajapaksa on Tuesday appointed Ajith Nivard Cabraal, the sitting junior minister overseeing capital markets, to head the island nation’s Central Bank, amidst a severe foreign exchange crisis that the country is facing. This will be Cabraal’s second term as the Governor of the Central Bank as he has previously served a stint as the head of the institution from July 1, 2006 until his resignation on January 9, 2015. Since August last year he was the Money and Capital Markets State Minister.
“President Gotabaya Rajapaksa has appointed Ajith Nivard Cabraal to head the island’s Central Bank with effect from September 15,” according to an official statement.
On Monday, Cabraal resigned from his position in order to assume the new post, which was left vacant by the resignation of current governor, Prof. WD Lakshman, with effect from September 14, the Colombo Page reported.
The appointment order pertaining to Cabraal has prompted protest by the Opposition leaders, saying that he has serious allegations of fraudulent transactions and also his new posting is a conflict of interest as he is a ruling party politician.
In a statement, the Opposition’s economic spokesman Eran Wickremaratne said that the integrity of the country as well as the Central Bank must be protected by ensuring that a fit and proper person was appointed as the Governor, and “Mr. Cabraal, with multiple allegations of fraudulent transactions and conflicts of interest, does not prove to be fit and proper”.
Opposition maintains Cabraal’s appointment would compromise the neutrality and the independence of the Central Bank.
Lakshman, the previous Central Bank chief, told reporters he was being pressured to resign three months ahead of his planned retirement.
He was also a Rajapaksa appointee in November 2019.
Lakshman’s tenure as the Central Bank head was a bumpy ride. Rajapaksa once summoned the entire Central Bank hierarchy to take them to task over inefficient handling of the economy.
The Central Bank was accused of printing money on a large scale to tide over economic woes during Lakshman’s stewardship.
“So the governor (Lakshman) is retiring after destroying Sri Lanka currency by printing 1.2 trillion to please his political masters,” Harsha de Silva, another opposition legislator, tweeted.
Sri Lanka is facing a severe foreign exchange crisis as the island nation, which heavily depends on tourism and tea exports, was battered by the coronavirus pandemic.
Finance minister Basil Rajapaksa has said that state coffers also suffered huge revenue losses due to the COVID-19 outbreak. PTI CORR RUP RUP RUP
Tata Capital has launched ‘Loan Against Mutual Funds’ (LAMF), whereby customers can digitally avail loans ranging from ₹5 lakh and ₹2 crore.
The non-banking finance company, in a statement, said the end-to-end (onboarding to disbursement) digital loan offering, which is quick and hassle free, is provided against a wide range of equity and debt schemes across mutual funds.
Customers can avail the loan as an overdraft facility or as a term loan by marking a line on the mutual fund units, which are managed by various asset management companies, it added.
“Auto renewal facility available for tenure exceeding one year (subject to review of the mutual fund portfolio)…Service portal comprises features for disbursement, drawdown, additional pledging and de-pledging,” Tata Capital said.
Backed by technology and analytics, LAMF is a personalised product to meet the personal or business funding requirements of the customer, according to the statement.
The loan amount is customised based on the value of the units in the mutual fund folio and tenure.
Referring to the more than two-fold increase of the mutual fund industry’s assets under management (AUM) in a span of five years, the NBFC emphasised that the customer continues to hold the mutual funds portfolio and can enjoy its benefits (of growth and dividend received from the MF portfolio).
Abonty Banerjee, Chief Digital Officer, Tata Capital said, “…Our latest digital product gives customers an opportunity to easily meet their fund needs in a seamless manner, even while retaining control over their portfolio.”
Even as lenders jostle for home loan pie, the assets under management of the segment across banks and non-banks are likely to grow by 15% over the next three to five years, according to ICICI Securities.
This would be on the back of the rise in disbursements and improved affordability.
“Factors such as low interest rates, stamp duty cut, benign real estate prices, etc. have improved affordability to own a house. ‘Work from home’ has kindled incremental housing demand. Construction too was not adversely impacted during the second wave,” the brokerage said.
Home loan growth fell to 8% over the previous three financial years as compared to 17-18% earlier while disbursements fell to Rs 5.3-5.5 lakh crore due to the pandemic. However, now risen to a run-rate of Rs 7-8 lakh crore.
Segment-wise
The Rs 2.5-7.5 lakh ticket size, or prime segment, has grown in the mid-teens, while the affordable housing segment has grown in mid-single digits over the past two to three years.
The extent of loans disbursed in the prime segment has also been significant, as per the brokerage.
Among housing financiers, the likes of Housing Development Finance Corp and LIC Housing Finance are returning to double digits for retail loans. In the case of banks, the home loan portfolio has stayed put since March. “Neither did they decline in the initial two months of this fiscal, nor was the momentum build-up witnessed in June-July. Year-on-year growth, thereby, sustained at around 9%. Now banks are fiercely competing with cut-throat pricing,” ICICI Securities said.
The Kotak offer
The competition among banks in home loan space is growing.
Kotak Mahindra Bank is offering home loans at a lower rate of 6.50 per cent is a festive period offer available only for two months till November 8, and the lowest offering is for those having highest credit scores coming from the salaried segment.
In the past, its rivals which include HDFC and SBI, have responded to rate cuts by slashing their own offering. The rate cut comes at a time when demand for home loans is falling in the country and may spark similar offers from rivals.
Large banks like the State Bank of India already offer home loans at as low as 6.65 per cent and 6.75 per cent, respectively, while the interest rates for HFCs is between 7.45 per cent and 10 per cent.
Nirmal Bang Institutional Equities said in a note, “The demand momentum seen in housing loans last year has tapered off and organic growth for the housing finance industry has been softening,” the brokerage house said. The organic growth in the home loan segment for large banks has been slowing over the last 45-50 days.
One can make deposits under SBI Platinum Deposits Scheme for a maturity period of Platinum 75 Days, Platinum 525 Days and Platinum 2250 Days. According to the announcement of SBI, the eligible deposits under the scheme are Domestic Retail Term Deposits including NRE and NRO, Term Deposits of less than Rs 2 crore, New and Renewal Deposits, Term Deposit and Special Term Deposits, NRE Deposits for a period of 525 Days and 2250 Days only.
Deposits such as Recurring Deposits, Tax Savings Deposits, Annuity Deposits, Motor Accident Claims Annuity (Term) Deposit Account (MACAD) Deposits, Multi Option Deposits (MODs), Capital Gains Scheme, NRE and NRO Deposits of Staff and Senior Citizens are not eligible under the scheme. Interest will be paid on term deposits at monthly/quarterly intervals and on maturity for special term deposits under the Platinum Deposits Scheme of SBI. Premature withdrawals are permitted under the scheme for both term and special term deposits. SBI Platinum Deposits Scheme account can be opened through bank branch, net banking or SBI YONO.
Under the Platinum Deposit Scheme of SBI, following interest rates will be applicable. According to SBI “Senior Citizens and SBI Pensioners shall continue getting benefits under SBI WECARE Scheme for 5 years and above tenor (additional benefit under Platinum Deposits not available).”
Tenor
ROI For Public
ROI for Senior Citizens
Existing
Proposed
Existing
Proposed
Platinum 75 days
3.90%
3.95%
4.40%
4.45%
Platinum 525 days
5.00%
5.10%
5.50%
5.60%
Platinum 2250 days
5.40%
5.55%
ROI applicable under SBI WECARE Scheme (6.20%)
Source: SBI
SBI Fixed Deposit Interest Rates
Following are the most recent interest rates of SBI for regular deposits of less than Rs 2 Cr made by the general public and senior citizens.
SBI Platinum Deposits vs HDFC Green Deposits: Where Should You Invest?