Month: October 2021

What are DeFi tokens?

They are blockchain-based decentralized financial applications that resemble successful principles in traditional banking and finance. The DeFi token is causing a stir in the marketplace. The main aim is to decentralize financial services and eliminate the necessity for a third party, such as a bank, in the middle. People can use DeFi platforms to lend or borrow money from others, trade cryptocurrencies, insure themselves against hazards, and earn income in savings accounts. A layered architecture and highly composable building components are used in DeFi. Some DeFi apps advertise huge interest rates, but they come with a lot of danger.

DeFi is based on decentralised applications, or DApps, that conduct financial activities on blockchains, which are distributed ledgers popularised by Bitcoin and have now been used more widely. Transactions are made directly between participants, mediated by smart contract programmes, rather than through a centralised middleman like a bitcoin exchange or a regular Wall Street equities exchange. These smart contract programmes, also known as DeFi protocols, are often run on open-source software created and maintained by a developer community.

Why DeFi Tokens Are Fascinating?

DeFi tokens, for example, allow consumers to borrow and lend inside a peer-to-peer network or take out insurance directly without the use of intermediaries like banks.DeFi coins are an intriguing application of the concepts pioneered by projects like Ethereum, which allow decentralized apps to run on their network infrastructure. DeFi tokens are another milestone in making investing and commerce opportunities available to individuals who may not have been able to participate up until now, pioneering an economic paradigm shift, thanks to decentralised platforms.

Terra- LUNA

This is the most valuable DeFi coin right now in terms of market capitalization. Terra’s native cryptocurrency, LUNA, is described as a “mining token with consistent payouts that are designed to absorb volatility from changing economic cycles.” LUNA, based in South Korea, is critical to maintaining the price stability of Terra’s stablecoins. Trading between the LUNA and Terra stablecoins is subsidised, so LUNA holders can stake their tokens and receive a percentage of the transaction fee from the Terra payment network.

Uniswap -UNI

Uniswap is a leading decentralised exchange that dominates the DeFi market at the moment. It uses an Automated Market Maker system (AMM) to ensure that the ERC20 tokens sold on its platform have enough liquidity. Because of its crypto-asset solutions, the Uniswap protocol has a devoted following. It gives you complete control over your private keys, allows you to trade with cheap costs, and interacts with external wallets.

Uniswap went a step further in September 2020, establishing and giving its own governance token, UNI, to former protocol users. This increased both the possibility for profit and the ability for users to control the destiny of the entity – a desirable feature of decentralised entities.

Avalanche- AVAX

Aave is a crypto loan service powered by an open-source DeFi technology. Its non-custodial liquidity technology lets you earn interest on your crypto assets while also allowing you to borrow them. The DeFi platform debuted in the bitcoin market in 2017.

The platform was originally known as ETHLend, and the native token was LEND. Its main function was to connect lenders and borrowers through a matching mechanism. The DeFi platform was rebranded Aave in 2018 to reflect the addition of new lending features.

Wrapped Bitcoin WBTC

WBTC complies with ERC-20, the Ethereum blockchain’s core compatibility standard, letting it to completely integrate into the ecosystem of decentralized exchanges, crypto lending services, prediction markets, and other ERC-20-enabled decentralized finance (DeFi) apps.

WBTC is likewise backed by Bitcoin at a 1:1 ratio through a network of automatically monitored merchants and custodians, ensuring that its price is always matched to Bitcoin and allowing users to transfer liquidity independently and autonomously between the BTC and ETH networks.

Dai- DAI

Cryptocurrencies and DeFi coins are notoriously volatile in the alternative financial industry. The DAI coin may be of interest to individuals who want to avoid price swings. In a word, this DeFi crypto coin is based on the Ethereum blockchain and is tied to the US dollar in terms of value.

DAI is, in reality, the first decentralised, collateral-backed crypto asset. The open-source software MakerDAO Protocol, which is one of the top DeFi platforms for using smart contracts to construct various decentralised applications, created this DeFi token.

DAI’s price is soft-pegged to the US dollar and is backed by a mix of other cryptocurrencies that are placed into smart-contract vaults whenever new DAI is issued.

Disclaimer

The information on this website is not intended to be investment, financial, trade, or other types of advice, and you should not take any of the website’s content as such. GoodReturns does not advocate that you purchase, sell, or hold any cryptocurrency. Before making any investment decisions, do your own due investigation and talk with your financial advisor.

How is Gold BeES beneficial for investors?

There are no storage and theft related issues with Gold BeES. Likewise, investors do not have pay that extra cost pertaining to gold designing as in jewellery making.

Other advantage with Gold BeES there is no risk with respect to the purity of gold as Gold ETFs deal in 99.5 percent pure gold.

Also, it is the most active traded as well as liquid form of gold investment.

Nonetheless for holding and remaining put in Gold BeES or Gold Benchmark Exchange Traded Scheme you need a demat account.

During the NFO period, there is a variable entry load structure based on the investment amount.

Also, in comparison to SGBs, gold BeES are available in high volume as there is immense volume unlike SGBs which are also offered in tranches for a limited timeframe.

There is no high margin cost involved in gold ETFs or gold BeES which for physical gold goes between 3-8 percent.

Exposure can be taken in very small quantity of gold.

Long-term capital gains (LTCG) tax at 20 per cent with indexation benefit is applicable on gold ETFs if gains on units are held for more than 36 months. Short-term capital gains (STCG) tax is imposed at the investor’s income-tax slab rate if gains on units are held for less than 36 months. This is similar to capital gains on SGBs sold in the secondary market.

Cost in transacting in Gold BeES

Similar to stocks, trading in Gold BeES carrues brokerage cost which is 0.5 per cent of the transaction value and it may differ from broker to broker. Investors can trade in 1 unit of Gold BeES which is equivalent to 1 gm of gold.

Outlook on Gold BeES

So, as a perfect hedge and diversifier, one amid uncertainty such as in the current landscape can bank on gold BeES. Also, these BeES are offered at a lucrative cost structure, so investors basis their long term investment goals can stagger their investment into it.

Points to note when buying into Gold BeES

1. One should factor in the fund’s assets under management as well as the average daily turnover

2. Impact cost which provides a sense of the liquidity that the instrument is offering.

3. Tracking error in comparison to the benchmark gold should be the least

Brightcom Group

The Brightcom Group is a digital marketing company based in Hyderabad, India, that was created in 2000 and has offices all around the world, as well as representatives or partners in Poland and Italy. For the first time in five years, the company is debt-free.

The stock returned 2419.93 percent over three years, compared to 92.27 percent for the Nifty Midcap 100. Over a three-year period, the stock returned 2419.93 percent, while the Nifty IT provided investors a 149.03 percent gain.

Brightcom Group Ltd., founded in 1999, is a Small Cap business in the IT Software sector with a market capitalization of Rs 7,244.56 crore. This stock performed fantastically well and gave returns of 1493.82% in one year.

Nahar Spinning

In the fiscal year ended March 31, 2021, the company spent 3.09 percent of its operating revenues on interest charges and 9.0 percent on staff costs.

The stock returned 474.29 percent over three years, compared to 89.17 percent for the Nifty Smallcap 100. The stock returned 474.29 percent over three years, compared to 89.17 percent for the Nifty Smallcap 100.

Nahar Spinning Mills Ltd., founded in 1980, is a Small Cap business in the Apparels industry with a market capitalization of Rs 1,598.96 crore. This stock fared exceptionally well, returning 1039.69 percent in a single year.

Nahar Spinning Mills Limited is a company that manufactures spinning yarn. In Ludhiana, it began as a small worsted spinning and hosiery unit. It began as a Private Limited Company in December 1980 and then changed its name to a Public Limited Company in 1983.

Olectra Greentec

In 1992, Olectra Greentech Limited was formed. The company’s main business is producing composite polymer insulators and electrical buses. Hyderabad is the company’s registered office. Points to Remember. Business divisions. Revenue fell by 70.7 percent on a quarter-over-quarter basis, the lowest level in the last three years.

The stock returned 188.84 percent over three years, compared to 89.17 percent for the Nifty Smallcap 100. Annual sales growth of 30.23 percent surpassed the company’s three-year CAGR of 19.93 percent. Over a three-year period, the stock had a 188.84 percent return, compared to 95.08 percent for the S&P BSE Industrials.

This small-cap stock performed remarkably well in a single year, returning 795 percent.

Tata Tele

Tata Tele Business Services Limited, formerly Tata Tele Services Limited, is a Mumbai-based Indian supplier of broadband, telephony, and cloud services. It is a subsidiary of the Tata Group, a conglomerate based in India. Stock returned 1044.05 percent over three years, compared to 92.27 percent for the Nifty Midcap 100. Over a three-year period, the stock returned 1044.05 percent, compared to 87.59 percent for the S&P BSE Telecom index. The company, on the other hand, has reported a loss of Rs 318.45 crore for the fourth quarter in a row.

Tata Tele stock also performed remarkably well in a single year, returning 794 percent.

GRM Overseas

GRM Overseas Limited is an Indian company that produces, buys, exports, and sells rice and paddy. Polythene is also made there. The company’s headquarters are in New Delhi, India.

In the year 1974, GRM Overseas was founded as a partnership firm. In the fiscal year ended March 31, 2021, the company generated a ROE of 33.98 percent, surpassing its five-year average of 27.1 percent. Stock returned 964.12 percent over three years, compared to 89.17 percent for the Nifty Smallcap 100.

GRM Overseas Ltd., founded in 1995, is a Small Cap company in the Agro Processing industry with a market capitalization of Rs 1,141.26 crore.

JTL Infra

The company’s yearly revenue growth rate of 89.26% surpassed its three-year CAGR of 36.91%. The stock returned 971.53 percent over three years, compared to 89.17 percent for the Nifty Smallcap 100. Over a three-year period, the stock returned 971.53 percent, while the Nifty Metal provided investors a 75.72 percent gain. The stock returned 971.53 percent over three years, compared to 89.17 percent for the Nifty Smallcap 100. JTL Infra Ltd., founded in 1991, is a Small Cap business in the Metals – Ferrous sector with a market capitalization of Rs 231.98 crore.

Multibagger Stocks: These 6 SmallCap Stocks Rose Up To 1493.82% In A Year

Disclaimer

Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution. Greynium Information Technologies, the author, and the brokerage house are not liable for any losses caused as a result of decisions based on the article. This article is only for educational purpose.

Buy TAJGVK Hotels with upside potential of 40%

TAJGVK Hotels is a premium hotel company centered in Hyderabad, with 67 percent of revenues coming from the city (pre-Covid).

ICICI Direct sees gains of nearly 40% on the stock of TAJGVK Hotels and has set a target price of Rs 210, as against the current market price of Rs 150.

Reports first-ever profits post March 2020 quarter

According to brokerage, with a robust rebound in revenues and managed fixed expenses, the firm declared its first quarterly net profit of Rs 1.2 crore after Q4FY20 in Q2FY22. From H2FY22 onwards, we expect strong traction in premium sector hotel room revenues. Furthermore, the ongoing crisis may result in a 15% to 18% reduction in room inventory, which bodes favorably for the company in the long run. Over FY21-23E, we anticipate a robust 79.8% revenue CAGR. In FY23E, we estimate the company’s business to recover to 94% of pre-Covid levels, with EBITDA exceeding pre-Covid levels. In FY23E, margins are expected to be over 26%, with the potential to rise to 30% or more.

Target and Valuation

“On a replacement basis, the stock is trading at EV/room of Rs 1 crore, at a significant discount to current replacement costs. We remain positive on the company and maintain our BUY rating Target Price & valuation: We value the company at Rs 210 i.e.18x FY23E EV/EBITDA,” the brokerage has said.

Buy Indian Hotels with upside potential of 21%

Through owned/managed hotels throughout the United States, the United Kingdom, Africa, Sri Lanka, the United Arab Emirates, and the Maldives, Indian Hotels has a select presence in the luxury market.

Leisure rebounds; business travel to follow soon

ICICI Direct sees gains of nearly 21% on the stock of Indian Hotels and has set a target price of Rs 250, as against the current market price of Rs 206.

Q2FY22 Results

In Q2FY22, Indian hotels experienced a strong resurgence, with revenue reaching 72 percent of pre-Covid levels. Indian Hotels’ revenues increased by 184 percent year on year and 111 percent quarter on quarter to Rs 8.4 crore in Q2FY22. EBITDA was Rs 72.8 crore, while the net loss was Rs 120.6 crore, compared to a loss of Rs 230 crore last year and a loss of Rs 277 crore the previous quarter.

Target and Valuation

“Along with the improved outlook, the company is also focusing on driving more efficiencies through cost optimization. We remain positive on the company and maintain our BUY rating Target Price and Valuation: We value IHCL at Rs 250 i.e.31x FY23E EV/EBITDA,” the brokerage has said.

Buy IEX with upside potential of 19%

The Indian Energy Exchange (IEX) is the country’s leading electrical exchange, facilitating electricity trade.

Sturdy revenues backed by high EBITDA margins

ICICI Direct sees gains of nearly 19% on the stock of the Indian Energy Exchange and has set a target price of Rs 910, as against the current market price of Rs 764.

Q2FY22 Results:

The IEX announced strong results for Q2FY22.

At Rs 110.4 crore, revenue was up 55.6 percent year over year and 21.3 percent quarter over quarter. In Q2FY22, EBITDA was at Rs 95 crore, up 71.4 percent year on year, with margins at 86.1 percent. Consequent PAT wasRs 77.4 crore in Q2FY22, up 74.6 percent YoY and 24.6 percent QoQ.

Target and Valuation

“For the past year, IEX has remained richly valued given its clean balance sheet, near-monopoly and bright future prospects. We continue to remain positive and retain our BUY rating on the stock. Target Price and Valuation: We value IEX at Rs 910 i.e. 57x P/E on FY24E EPS,” the brokerage has said.

Disclaimer

The above stocks are picked from the brokerage report of ICICI Securities. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution. Greynium Information Technologies, the author, and the brokerage house are not liable for any losses caused as a result of decisions based on the article.