Month: October 2021

What is LIC Jeevan Shanti Plan?

LIC Jeevan Shanti is a single premium plan deferred, and the subscriber can select between Single life and Joint life deferred annuity plans. It is a deferred plan that means you will get the pension after a particular timeline as decided earlier; which is different from an immediate annuity plan that will start immediately after you start investing. Hence, under this pension plan, the annuity rate will be guaranteed at the inception of the policy and annuities are payable post deferment period throughout the lifetime of the annuitant(s). It is a non-linked plan that means the returns from this plan will not depend on the markets, and the performance will not depend on the performance of underlying assets.

Benefits – single life and joint life

During the deferment period, if the policyholder survives, nothing will be paid. On the death of the policyholder, the death benefit will be paid. On the other hand, after the deferment period, the annuity payments will be paid in arrears for as long as the policyholder will be alive. If the policyholder dies, the annuity payments will be ceased immediately, while the death benefit will be paid to the nominee(s). In the case of the joint-life option, during the deferment period, if the Primary Annuitant and/or Secondary Annuitant survives, nothing will be paid, but on the death of the last survivor, the death benefit will be paid to the nominee(s).

Purchase Price and eligibility

The minimum purchase price, under this pension plan, is Rs. 1,50,000, which is subject to the minimum annuity, while there is no limit on the maximum purchase price. For LIC Jeevan Shanti, the minimum entry age is 30 years, while the maximum entry age is 79 years. On the other hand, the minimum vesting age is 31 years, and the maximum vesting age is 80 years. The minimum deferment period for a policyholder will be 1 year, and the maximum deferment period will be 12 years, both are subject to the maximum vesting age. However, LIC informs that if the pension policy is purchased for a dependant person with a disability, the proposal shall be allowed without any restriction on minimum annuity and the minimum purchase price under such cases shall be Rs. 50,000.

Annuity calculation

Here is a calculation below to understand the annuity benefits (annuity amount payable – INR) of the planning, considering – the purchase price at Rs. 10 lakh (excluding taxes), age of annuity at 45 years, deferment period at 12 years, and age of the secondary annuitant at 35 years.

LIC informs in a document that the policyholder(s) will have to select one of the following options for the payment of the death benefit to the nominee(s).

Death benefits

Death benefits will be higher of the purchase price plus accrued additional benefit on death minus total annuity amount payable till death – if any, or 105% of Purchase Price, in both single life and joint life options. In addition to that, the annuity rate PA will be paid monthly shall be equal to annuity rate per unit Purchase Price applicable for monthly mode, without applying any incentive and shall depend on the Option chosen, age at entry of the annuitant(s) and the deferment period opted for. In case the policyholder dies during the deferment period, an additional benefit on death for the policy year in which the death/surrender has occurred will accrue till the completed policy month, till death.

TATA Consumer Products

Tata Consumer Products Ltd., founded in 1962, is a large-cap company in the FMCG industry with a market capitalization of Rs 78,161.41 crore. Only 1.88 percent of trading sessions in the last 16 years had intraday gains of more than 5%. Stock returned 270.21 percent over three years, compared to 71.1 percent for the Nifty 100 index.

Over a three-year period, the stock achieved a 270.21 percent return, compared to 44.95 percent for the Nifty FMCG index. TATA Consumer Products has declared an equity dividend of 405.00 percent, or Rs 4.05 per share, for the fiscal year ending March 2021. This translates to a dividend yield of 0.47 percent at the current share price of Rs 853.45.

CCL Products

CCL Products India Ltd., founded in 1961, is a Tea / Coffee-related Mid Cap company with a market capitalization of Rs 5,584.51 crore. Only 4.43 percent of trading sessions in the last 16 years had intraday gains of more than 5%. The stock returned 70.86 percent over three years, compared to 91.35 percent for the Nifty Smallcap 100. CCL Products India has declared an equity dividend of 200.00 percent, or Rs 4 per share, for the fiscal year ending March 2021. This translates to a dividend yield of 0.95 percent at the current share price of Rs 419.05.

Tata Coffee

Tata Coffee Ltd., founded in 1943, is a Small Cap company in the Tea / Coffee industry with a market capitalization of Rs 4,368.56 crore. The company saw a QoQ revenue loss of 12.1%, the lowest in the prior three years. Stock returned 145.31 percent over three years, compared to 91.35 percent for the Nifty Smallcap 100. Since July 10, 2001, Tata Coffee Ltd. has issued 24 dividends.

Tata Coffee Ltd. has issued an equity dividend of Rs 1.50 per share in the last 12 months.

This equates to a dividend yield of 0.64 percent at the current share price of Rs 235.35.

Neelamalai Agro

Neelamalai Agro Industries Ltd., founded in 1943, is a Small Cap company in the Tea / Coffee industry with a market cap of Rs 227.67 crore. Since the last five years, the company has had no debt. Annual sales growth of 20.28 percent surpassed the company’s three-year CAGR of 1.11 percent. Neelamalai Agro Industries Ltd. has issued an equity dividend of Rs 30.00 per share in the last 12 months.

This translates to a dividend yield of 0.82 percent at the current share price of Rs 3660.00.

Dhunseri Tea & Industries

Annual sales growth of 29.56 percent surpassed the company’s three-year CAGR of 10.04 percent. The stock returned 79.84 percent over three years, compared to 91.35 percent for the Nifty Smallcap 100. Dhunseri Tea & Industries Ltd., founded in 1997, is a Small Cap business in the Tea / Coffee industry with a market capitalization of Rs 306.82 crore.

Dhunseri Tea & Industries Ltd. has declared an equity dividend of Rs 5.00 per share in the last 12 months.

At the current share price of Rs 291.55, this translates to a 1.71 percent dividend yield. When bonus/splits are taken into account, the dividend yield is 1.14 percent. Dhunseri Tea has a PE ratio of 6.09, which is low and undervalued compared to other tea companies. The EPS for TH is 47.58, which is very good.

Bombay Burmah

Only 5.66 percent of trading sessions in the last 16 years had intraday gains of more than 5%. Bombay Burmah Trading Corporation Ltd. has declared an equity dividend of Rs 1.20 per share in the last 12 months.

This equates to a dividend yield of 0.1 percent at the current share price of Rs 1161.50. The company’s yearly sales growth of 12.45% surpassed its three-year compound annual growth rate of 9.48 percent. In comparison to the Nifty Midcap 100, which returned 89.93 percent over three years, the stock returned -12.85 percent.

6 Popular Tea, Coffee Company Stocks In India 2021; Check Dividend Yield

Disclaimer

Please note investing in stocks is subject to market risks and one needs to be cautious at this point of time as markets have gone-up sharply. The above article is only for educational purposes. Neither the author, nor Greynium Information Technologies Pvt Ltd would be responsible for losses incurred based on a decision made

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