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2 Banking And Financial Services Stocks To Buy From Motilal Oswal & Sharekhan

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Buy SBI Life Insurance stock, says Motilal Oswal

According to Motilal Oswal, its recent interaction with the management indicates pick up in business momentum, with growth bouncing back strongly across all segments.

The management is aiming at healthy double-digit growth over FY22E (20-25%), which would be among the best in the past few years, the brokerage has said.

Also, according to the Motilal Oswal report, the agency channel has shown a strong bounce back and is contributing well to business growth. Strong momentum in high margin segments such as Annuity and Credit Life would aid further improvement in VNB margin (this margin indicates profits of a life insurer business).

“We estimate VNB to grow at 24% CAGR over FY21-24E, with operating RoEV to sustain by 18% by FY24E. SBI life Insurance is among our preferred picks in the Life Insurance space. We reiterate our Buy on the stock of SBI Life Insurance rating with a target price of Rs 1,400 per share (2.6x 1HFY24E EV),” the brokerage has stated.

Buy Kotak Mahindra Bank, says Sharekhan

Buy Kotak Mahindra Bank, says Sharekhan

According to Sharekhan, Kotak Mahindra Bank is well-positioned to grow at a healthy rate as credit demand picks up and as it has a clean balance sheet (capital adequacy of 24.7%; Tier I capital at 22.8%), strong liability franchise (industry leading CASA at 60.2%) and improving trend on asset quality side.

In Q2, the brokerage expects slippages to decline as collection efficiency improves. Consequently, GNPA ratio is expected to be at 3.3% in Q2, down from 3.56% in Q1. Net Interest Income is also likely to grow by 15% with better recoveries and an increase in credit growth during the quarter.

“We expect the bank’s subsidiaries such as Kotak Securities and Kotak Asset Management to perform well amid a buoyant equity market. Valuations are attractive after adjusting for subsidiary valuations of Rs 571 per share. We retain a Buy rating on the stock with revised sum of the parts based price target of Rs 2,428 valuing the standalone bank at 4.5x FY23 book value,” the brokerage has said.

Time to be cautious

Time to be cautious

Investors are also advised caution as the markets maybe overvalued at these levels. According to reports, stocks in India could be overvalued by 15 to 20%, based on historic price to earnings multiples for the Sensex and the Nifty companies. While we do pick investor brokerage reports for coverage, we also advise investors to invest in small amounts or to buy on declines as the best strategy.

Disclaimer

Disclaimer

The investment ideas are picked from the brokerage report of Sharekhan and Motilal Oswal. Investors should note that investing in stocks is risky and neither the author, nor Greynium nor the brokerage would be responsible for losses based on a decision from the above article.



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Predictions by Standard Chartered and Finder reveal the mercurial and beneficial futures of Ethereum and Bitcoin, BFSI News, ET BFSI

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The fluctuations in the values of Bitcoin and Ethereum keep investors on edge. To address investor sentiments and anxiety, research website Finder and the UK-based multinational bank, Standard Chartered’s global research team, have conducted an exercise. They have made significant forecasts about the Bitcoin and Ethereum market tendencies based on the existing potential and investment reputation of the coins.

Here are some key takeaways from the forecasts.

Price predictions for Bitcoin:

  • According to Finder, Bitcoin would culminate at $107,484 in 2021, before capping off at $94,967. The Finder panel expects Bitcoin to jump to an average of $3, 60,179 by 2025.
  • The Standard Chartered research team’s prediction is that Bitcoin’s price would increase to thrice the current value, taking it to the range of $50, 000 – $1,75,000 per BTC.
  • About 49 percent of Finder’s panel think it’s the right time to buy BTC, while 39 percent plan to hold off, and 12 percent want to sell them.

Price predictions of Ethereum:

  • Finder panellists forecasted that the Ethereum price would peak at $4, 512 by the year end.
  • The panel expects Ethereum to reach $19,842 on average by 2025.
  • Panelists including Joseph Raczynski, technologist at Thomson Reuters and Joel Kruger of LMAX group, believe that the ongoing upgrades in Ethereum and its intrinsic potential will inevitably boost its valuation and innovations hosted on it’s network. Standard Chartered also believed that the ongoing upgrade would improve Ethereum’s functionality and efficiency.
  • 59 percent of the panel said it was the right time to buy Ethereum, while 28 percent advised investors to hold off their investments.
  • Standard Chartered prophesied that Ethereum will shoot up 10 times in a price range of $26, 000- $35,000 per ether.
  • The Standard Chartered team even expects Ether to outdo Bitcoin and its returns to overgrow Bitcoin with increased risks.

Further, 51 percent of the Finder research panel predicted that Ethereum would be the most transacted cryptocurrency in 2022, and 49 percent believed Bitcoin would lead. Moreover, 70 percent of panelists believed that Ethereum’s usage will grow owing to a spurt in the sale of DeFi and NFTs. Though the analysts believe that Ethereum can outshine Bitcoin, they pointed out two major threats to Ethereum.

  • A majority of the Finder panel, 55 percent to be precise, think that the ownership of the 70 percent ethers by whale investors is a moderate risk to the cryptocurrency, while 24 percent consider it a huge risk.
  • The emerging and growing smart contract blockchains are believed to be a risk to Ethereum according to 62 percent Finder panelists, while 32 percent consider those blockchains to succeed independently or growing as Ethereum’s complementary.

Top cryptocurrencies in long term and short term:

  • Long term -The top lucrative altcoins projected by the panellists were Polkadot (DOT); 7 percent said Bitcoin cash is a preferred choice for long-term purchase.
  • Short term – The most popular altcoins were Binance Coin (BNB), Cardano (ADA) and Polkadot (DOT). The least popular ones were Bitcoin Cash (BCH) and Klaytn (KLAY).

Commenting on the different capabilities of Ethereum, Geoffery Kendrick, Head crypto research at Standard Chartered, said that Ethereum works like a financial market that facilitates lending, insurance and exchanges, while Bitcoin is almost like a currency. Raczynski said that Ethereum is an ecosystem that has transforming perspectives for all the industries, whereas Bitcoin is now a household name.



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How Sensex, Nifty have raced ahead of global peers since March 2020

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India’s equity indices have outperformed global peers by a wide margin since the Covid-induced sell-off of January-March 2020.

India’s benchmark indices, the Sensex and the Nifty50, have surged 107 per cent and 112 per cent till date from their close of 29,468.49 and 8,597.75, respectively, as at end-March 2020. In comparison, BRICS (excluding India’s) as well as other major indices such as the US’ Dow Jones Industrial Average, Germany’s DAX and Japan’s Nikkei 225, are up only 30-72 per cent over the same period.

So, what has driven this outperformance of the domestic bellwethers?

Advantage India

The rub-off effect of India emerging as a preferred investment destination in the region for global investors is the key reason. Deepak Jasani, Head of Retail Research, HDFC Securities, says: “China losing the advantage of cheap labour, cheap and adequate power coupled with unpredictable policies have made foreign investors wary, and money is moving out of China into other countries including India.”

Ankur Maheshwari, CEO, Equirus Wealth, echoes this: “As events such as the investigations against Alibaba and, more recently, the Evergrande debt crisis unfold, investors are losing confidence in China and this has made India a relatively better avenue for foreign money flows.”

RBI data show that India attracted robust Foreign Direct Investments (FDI) of $64.36 billion in 2020 — a 27 per cent jump over the $50.6 billion received in 2019. In contrast, China saw an inflow of $141 billion in 2020 (latest available data), down 5.4 per cent compared to 2019.

Lacklustre market

India’s under-performance before 2020 is another reason for the strong recovery post the Covid-19 sell-off.

Nikhil Kamath, Co-Founder, Zerodha and True Beacon, says, “The rise in Indian benchmarks for two or three years before 2020 was not steep as other major indices. This created a lot of foreign investment flows into India on a relative scale compared to the other Asian and Western countries”.

This is evident from the data on the Foreign Portfolio Investment (FPI) flows into equity. Among the BRICS nations, India stands out as highly preferred destination. Since March 2020, the net FPI inflows in Indian equities add up to $38.4 billion so far. Brazil’s net inflows are $14.46 billion, whereas South Africa saw a net outflow of $12.17 billion since March 2020.

The under-performance prior to 2020 made Indian equities relatively cheaper as well. Ashish Shanker, MD & CEO, Motilal Oswal Private Wealth, says, “Indian counters had become cheap due to the huge under-performance since 2015. The market cap-to-GDP was just 50 per cent when markets fell.” This coupled with a strong recovery in corporate profits has sustained the attraction for Indian equities into 2021.

“A strong 20 per cent growth in corporate profits in FY21 was a major driver and the market cap-to-GDP now stands at 120 per cent,” he added.

Domestic factors

Low interest rates on fixed income instruments and the rising market attracted Indian investors to equities. In addition, index heavyweights like HDFC and ICICI Bank saw strong retail participation that helped in taking the indices higher.

Record capital raising by Reliance Industries and its strong 127 per cent surge since March 2020 are major factors that drove up the indices.

Will the party continue?

The Sensex and the Nifty 50 touched a new all-time high of 60,412.32 and 17,947.65, respectively, earlier in September, but came off those highs last week. The new peaks, though, came at a time when other global indices like the Dow Jones and Nikkei had already turned around from their peaks a few weeks ago.

Caution is the word

With the benchmark indices continuing to remain resilient so far in spite of the weakness in the other global markets, experts advise caution. They say that a correction is due and could come with a lag compared to other global markets; at the same time, the fall could be limited as fresh buying can emerge again at lower levels, they feel.

 

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Tax Query: How to file return of income for deceased father

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My father died on 1st April,2020 without making will. The surviving heirs in the family are my mother, three married sisters and myself. It will not be possible for me to obtain succession certificate or arrive at distribution of wealth of my deceased father by mutual understanding. amongst surviving heirs in short time. In the name of my deceased father I have following taxable income . (i) Rental income from house property for flats and shops given on rental basis. Here the related properties are held by my deceased father jointly with my surviving mother. Investments in these properties were made by my deceased father out of his taxable income, and nothing was contributed by mother towards investment. (ii) Rental income out of banquet hall given to public for marriage and other social functions. Banquet hall is in the sole name of my deceased father and it is on rentalpagadi basis. (iii)Profit out of business of retail shop selling Spectacles, Watches and Clocks. This business was run by my father on a proprietorship basis in his name, and my father was showing income out of it in his return of income. How do I file return of income in case of my deceased father in respect of above income for the financial year 2020-21? Please also let me know whether rental income from shops and residential flats as detailed at point No. (i) above can now be reported by me in my mother’s return of income, since she is the second name holder to properties jointly with my deceased father, and I am collecting cheques for rental in my mother’s name and depositing the same in her bank account.

Vijay Ved

When a Hindu male dies intestate (without leaving a will), the Hindu Succession Act could be applied for dividing the wealth among the Class 1 legal heirs. In the current circumstance, your mother, you and your sisters will qualify as Class 1 heirs. Class 1 heirs will have equal rights on the assets of the deceased. It is advisable to get a legal view on the above.Accordingly, rental income from banquet hall and business income from shop is equally taxable in your hands. With respect to property income where your mother is a joint owner, in the absence of any information on proportion of holding, your father’s share of 50 per cent in the property will equally vest with all the five of you being class 1 legal heirs. You all will have to pay tax on income from this portion of property. While your mother will in addition will also be taxable on her balance ownership of 50 per cent.

The writer is Partner, Deloitte India

Send your queries to taxtalk@thehindu.co.in

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IL&FS auditor SRBC & Co resigns, BFSI News, ET BFSI

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New Delhi, Debt-ridden Infrastructure Leasing & Financial Services (IL&FS) has said its statutory auditor SRBC & Co has resigned with effect from September 28, 2021. “M/s SRBC and Co. LLP will be ineligible to continue as auditors of the Company for the financial year 2021-22 beyond September 30, 2021 having completed audits for three years,” IL&FS said in a stock exchange filing.

The National Financial Reporting Authority (NFRA) had earlier found serious lapses in the statutory audit of IL&FS Transportation Networks Ltd (ITNL), a subsidiary of IL&FS, for the 2017-18 fiscal, including that the company’s losses were understated by at least Rs 2,021 crore.

The statutory audit was conducted by SRBC & Co LLP.

IL&FS further said the company has approved the appointment of CNK Associates LLP as statutory auditor for FY 2021-22.

SRBC, in a statement, said it was appointed as the statutory auditor of IL&FS in September 2017 and has already served for a continuous period of three years.

As per the new RBI guidelines, this makes SRBC ineligible to continue as the statutory auditor of the company beyond September 30, 2021, it said.



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UPDATE 3-Wells Fargo must face shareholder fraud claims over its recovery from scandals, BFSI News, ET BFSI

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(Adds comment from lawyer for ex-CEO Sloan, changes dateline from Sept. 30)

NEW YORK, – A federal judge on Thursday rejected Wells Fargo & Co’s bid to dismiss a lawsuit claiming it defrauded shareholders about its ability to rebound from five years of scandals over its treatment of customers.

The fourth-largest U.S. bank has operated since 2018 under consent orders from the Federal Reserve and two other U.S. financial regulators to improve governance and oversight, with the Fed also capping Wells Fargo’s assets.

Shareholders said bank officials falsely claimed in TV interviews, analyst calls and congressional testimony that the bank was mending its ways, when regulators actually viewed its progress as “deficient” and “unacceptable.”

U.S. District Judge Gregory Woods in Manhattan said the shareholders plausibly alleged that some statements by various bank officials, including former Chief Executive Tim Sloan, were “deliberately or recklessly false or misleading.”

According to shareholders, San Francisco-based Wells Fargo lost more than $54 billion of market value as the truth was gradually revealed over a two-year period ending in March 2020.

Woods also dismissed claims against current Chief Executive Charles Scharf, saying he was not culpable for the challenged claims.

The scandals prompted Warren Buffett‘s Berkshire Hathaway Inc to shed nearly all of its 10% stake in the bank.

“We will continue to vigorously defend the litigation and strongly disagree with the claims,” Wells Fargo said in an email.

Sloan’s lawyer Josh Cohen said in an email on Friday that his client’s statements were truthful, and that Sloan “worked tirelessly to bring Wells Fargo into compliance with consent orders and regulatory demands.”

The decision is a setback for Wells Fargo’s rebound from revelations including that it opened about 3.5 million accounts without customer permission, and charged hundreds of thousands of borrowers for auto insurance they did not need.

Wells Fargo has paid more than $5 billion in fines, and the Fed’s $1.95 trillion asset cap restricts the bank’s growth.

Sloan stepped down abruptly as chief executive after 2-1/2 years in March 2019. One year later, Wells Fargo canceled a $15 million bonus for him.

In his 61-page decision, Woods did not decide whether bank officials intended to defraud shareholders.

But he said it would have been “nearly impossible” for Sloan to be unaware of the regulators’ criticisms.

“Based on the facts on the ground, Mr. Sloan knew or, more importantly, should have known that he was misrepresenting material facts related to the corporation,” Woods wrote.

The shareholders are led by the state of Rhode Island, and pension funds in Louisiana, Mississippi and Sweden.

Their lawyer Steven Toll said he was pleased they can sue over the “vast majority of the alleged fraudulent statements.”

The case is In re Wells Fargo & Co Securities Litigation, U.S. District Court, Southern District of New York, No. 20-04494. (Reporting by Jonathan Stempel in New York; editing by Jonathan Oatis, Aurora Ellis and Cynthia Osterman)



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Making property services slick with a click

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The shift to getting more things done online, driven by the pandemic, has also nudged the slow-moving property-related services in the government into a more citizen friendly one. There has been an acceleration in providing online access to citizens for various procedures, by various States (property is a state subject). From getting information such as circle rates to submitting forms and paying fees, departments at various levels are making it easy to get things done digitally.

You can check out services.india.gov.in and go to the “Housing and Property” section to access most of the online services available. You can also look at State Government websites such as eservices.tn.gov.in in Tamil Nadu. Only a few examples for the type of options available are covered here and it will be good to verify what else has been added through an online search.

Finding information

Property documents have been getting digitized over a long period. These public records are accessible to everyone to view and print. The coverage of the data varies between States and they also differ in what they make available on the internet.

Some data is available without providing any reference information. Uttarakhand for example gives information such as the size of land for all areas including rural areas in devbhoomi.uk.gov.in website. In Rajasthan, you can view and print Jamabandhi document for any piece of land online. The apnakhata.raj.nic.in site is in Hindi. In Maharashtra, the Mahabhulekh website (bhulekh.mahabhumi.gov.in) provides land record documents (known as 7/12 or Satbara Utara) and property card which gives the record of land ownership history.

Some data, such as verification, requires providing specific details or fees. For instance, you can get data on dues paid on a property by giving the property ID in Kerala’s land information site (erekha.kerala.gov.in). Karnataka’s land records site, karnataka.gov.in shows various property related data such as Record of Rights, Tenancy and Crops (for agriculture land), mutation register and status, once you provide reference information such as survey number.

Getting services

Various State governments are working towards digital land records that will enable end-to-end digital service and process – registration, transfers and mutations, duty payments, record modifications, verifications and reporting. Even now, you can get various services online.

The simplest one is getting an encumbrance certificate (EC). It gives information on monetary and legal liability of the property and is required by banks for a loan. This routine service can be availed online in Tamil Nadu by filling an online form with property specifics such as survey number in tnreginet.gov.in website.

Property tax payments – another recurring routine procedure – is also online in various municipalities and corporations. In Andhra Pradesh, cdma.ap.gov.in website provides a one-stop access to this. For others, such as in Maharashtra, it is distributed with nmmc.gov.in for Navi Mumbai, pmc.gov.in for Pune etc. In West Bengal, you can apply for mutation (change of ownership) and land-use conversion (say agriculture to residential) online. The wbregistration.gov.in site provides many services including certifying documents.

Other government permissions can also be sought digitally. For instance, in Karnataka, if you wish to purchase agricultural land for Industrial purpose, you can directly raise a request with the project details. Once the process is completed, you can also get the permission order copy electronically.

Need to do registration of a property and want an appointment? Haryana lets you check available slots in the next 60 days and book your time online. Delhi’s doris.delhigovt.nic.in shows that over 2.2 lakh documents were registered online in 2021.

In Punjab, pbindustries.gov.in website lets you apply for building plan approval, completion and occupancy certificates and many more. In Karnataka, you will also be able to notify any alterations to the property (such as change in area, tenancy change) and pay taxes.

Other services

With the implementation of RERA, nearly all States have a portal with the list of registered projects and agents. You can also file complaints online by providing detailed information, supporting documents and paying a fee. Delhi’s online property registration website also has a section to register grievances. In Haryana, lost property details can be reported at haryanapolice.gov.in with user registration.

Not just land and property ownership, rental related registrations are also online. One example is tenancy.tn.gov.in for Tamil Nadu. Likewise, you can access various government schemes such as housing grants online. Gujarat’s sje.gujarat.gov.in site provides access to urban and rural housing programs. In Tamilnadu, you can apply for housing board homes and track the status of your application with the tnhb.tn.gov.in website.

Greater Hyderabad’s website (ghmc1.ghmc.gov.in/Tax/calculationofpropertytax.asp) features online calculator for property tax. Many sites also provide a dashboard on process related information.

The author is an independent financial consultant

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Does clubbing of income save tax?

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A phone call between two friends leads to a conversation on the clubbing of income under the Income Tax Act. Those who have not yet filed tax returns for FY21, need to take note of these provisions.

Akhila: Hello! How’s life and work ?

Karthik: All well. I am trying to file my tax return and finish with this obligation by this weekend. I don’t want to wait till the extended December 31 deadline. You called me at the right time, actually. While it looks like I have no choice but to pay a fat tax this year, I was pondering over some ideas to save taxes in future.

Akhila: Is it? Shoot and let me tell you whether it will work or not.

Karthik: My total taxable income falls under the highest tax slab. I realised, just by excluding the interest income I earn on my fixed deposit from my total income, my tax slab can be a notch lower.

For this, I am planning to transfer this FD in the name of my kiddo now. Since he has no income, I can cut my tax outgo significantly from next year.

Akhila: Feel free to transfer the FD to your kid, by all means. But that will not reduce your tax burden. That interest income will continue to be taxable in your hands.

Karthik: Gosh!

Akhila: Thanks to genius tax planners like you, the Income Tax Act has an exclusive chapter that talks about clubbing of income.

Karthik: What genius? You just burst my bubble.

Akhila: Income earned by a minor child is clubbed with the income of the parent whose income is higher. Only if the minor child earns the income by way of manual work or application of his/her skill or talent, the clubbing will not come into picture. Since your kid won’t fulfil these conditions, the interest income will continue to be part of your taxable income or your wife’s.

Karthik: Uh, oh.

Can I at least transfer it in the name of my wife, who is currently earning lower than me, so that the tax will be a bit lower?

Akhila: Do you think the taxman wouldn’t have thought about it?

Karthik: Hmm…Of course, no. I was just trying my luck.

Akhila: Income from assets transferred to your wife, too, will be clubbed.

Karthik: Whoa! So basically, any income from assets transferred to my child or wife will be clubbed with my income, right? No escape route for me then…

Akhil: Mostly it does get clubbed in your hands, when the transfer is made without any consideration in return. This income has to be reported under Schedule SPI of the ITR.

Karthik: Got it.

Akhila: Remember, clubbing provisions will not apply on the income derived from clubbed income.

Karthik: Did you just utter a tongue twister?

Akhila: Ha-ha. Say, you transfer the FD to your son/wife. The interest income from that will be clubbed with your income. But if they invest the interest income somewhere, and your son/wife further earns an income from that, that income will not be clubbed with your income.

Karthik: Thank the taxman for small mercies.

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Things to remember when you dip into PF money

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Relatively higher returns than many other fixed income products, a sovereign guarantee backing and friendly tax treatment – make the PPF and EPF hugely popular. Even as market rates are quite low, the government left the interest rate on PPF unchanged in the latest quarterly revision last week. The interest rate has been left unchanged at 7.1 per cent since the June 2020 quarter. Likewise for the EPF – the interest rate on it was retained at 8.5 per cent for FY21, the same as that for FY20.

While from FY22, interest on employee contributions above ₹2.5 lakh into EPF is taxable, this threshold affects only a small population. Net-net, these instruments are unmatched vehicles for someone with a low risk appetite, without having to compromise on returns. However, the long lock-in that these instruments come with, is a negative. A PPF account has to be opened for a minimum of 15 years and can be extended in blocks of 5 years afterwards. As regards the EPF account, most people pretty much contribute to it throughout their work life.

What if you are faced with an emergency and want to dip into these savings? While you should ideally have other liquid investments for emergencies, knowing the rules on withdrawals from the PPF and the EPF help.

PPF

You can make premature partial withdrawals or even close the PPF account prematurely any time after five years from the end of the financial year in which you opened the account. Let’s suppose, you opened a PPF account in January 2017, that is, in FY 2017. Then, you can prematurely withdraw from or close your account only after five years from the end of FY 2017 (31 March 2017), that is, after 31 March 2022 or from FY 2023 onwards.

Premature withdrawal: While a premature withdrawal (unlike account closure) can be done for any reason, it is allowed only up to a certain limit. Your withdrawals cannot exceed the lower of the following – fifty per cent of the balance in your PPF account either at the end of the fourth year preceding the year of withdrawal or at the end of the immediately preceding year. Let’s take an example. If you want to make a withdrawal in August 2022 (FY 2023), then the maximum that you can withdraw is 50 per cent of the account balance as of March-end 2019 (FY 2019- end) or as of March-end 2022 (FY 2022-end), whichever is lower. A withdrawal can be made only once in a financial year.

Premature closure: This can be done only for specific reasons such as treatment of life-threatening disease for the account holder, his spouse or dependent children or parents; for expenses on higher education of the account holder or dependent children in a recognised institute of higher education or change in the residency status of the account holder. Any such a request must be backed by supporting documents.

In case of premature closure, the account will earn one percentage point lower interest than the applicable rate. This will apply for the entire period of the account. Partial withdrawals or a full withdrawal on premature account closure are not taxed.

EPF

In the normal course, you can withdraw your entire accumulated EPF balance on retirement after the age of 55. You are also allowed to withdraw up to 90 per cent of your account balance any time after turning 54 or within one year before your actual retirement, whichever is later.

Premature withdrawal: Premature withdrawal is permitted for reasons such as purchase / construction of a house, acquisition of a site for such construction, additions or substantial alterations to your house and repayment of loans in some cases, subject to certain conditions and limits. To be eligible, you must have held an EPF account for at least five years.

The withdrawal for purchase or construction of a house, for instance, must not exceed – the member’s basic salary and dearness allowance (DA) for thirty-six months OR the member’s own share of contributions, together with the employer’s share of contributions along with the interest OR the total cost of construction, whichever is lower. Withdrawals are also permitted for reasons such as illness in certain cases, marriage and post-matriculation education for your children. For this, you must have held an EPF account for at least 7 years.

Following the Covid outbreak, the EPFO additionally allowed subscribers to avail an advance of up to the limit of basic pay and DA for three months or up to 75 per cent of the EPF account balance, whichever is lower. The two Covid advances were announced in March-20 and May-21.

Premature closure: You can make a full withdrawal and close your account if you have been unemployed for two months since leaving your last job. As long as a complete withdrawal is made only after completing five years of service, there are no tax implications.

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2 Stocks To Buy For Long Term Investors According To Motilal Oswal

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Buy Piramal Enterprises stock, says Motilal Oswal

According to Motilal Oswal over the past two years, Piramal Enterprises has strengthened its Balance Sheet by running down its Wholesale loan book, reduced the top 10 exposures, brought equity capital into the company through multiple means, improved the texture of its borrowings by reducing CPs, and e) fortified itself against contingencies, with ECL provisions at 5.8% of assets under management.

“Product diversification within Retail would help the company deliver strong growth and lower concentration risk. We expect the Financial Services business to deliver 2.3% RoA/10% RoE over the medium term (post building in the DHFL acquisition). We have maintained our target multiple of 1.8 times for the Financial Services business. Using Sum of The Parts, we arrive at target price of Rs 3,150 per share (Jun’23E based). We maintain our Buy rating on the stock of Piramal Enterprises,” the brokerage has said

Buy Jubilant Foodworks stock for a 20% upside

Buy Jubilant Foodworks stock for a 20% upside

According to brokerage firm Motilal Oswal, the Jubilant FoodWorks stock has an upside potential of nearly 205 from the current levels. The company recently acquired 32.81% stake in DP Eurasia in Feb’21 via its wholly-owned subsidiary: Jubilant Foodworks Netherlands. It is the exclusive master franchisee of the

Domino’s Pizza brand in Turkey, Russia, Azerbaijan, and Georgia.

According to Motilal Oswal as of March’21 Jubilant FoodWorks, has a robust Balance Sheet, with cash and cash equivalents of Rs 6.2 billion. While Jubilant FoodWorks subsidiary – JFN – has a short-term borrowing facility in place to fund the DP Eurasia acquisition, it would not be a stretch on Jubilant FoodWorks Balance Sheet. The increase in stake would give the company better control to steer the strategy of respective companies and replicate its success story from India.

Disclaimer:

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. The above article is for informational purposes only and investors should exercise some discretion, given that the Sensex is near the 60,000 points level.



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