Cryptocurrency prices continued to be stable on Indian exchanges 48-hours after major crash of 15-20 per cent across tokens; though with the exception of Sandbox token. It was the highest gainer yesterday but today it is trading below at 12.29 per cent of its peak price from yesterday.
At 10:57 am on WazirX, Bitcoin’s price had slightly gone up by 0.21 per cent, Shiba Inu’s price increased by 4.2 per cent, Tether was up by 2.45 per cent, Ethereum was up by 6.1 per cent and Basic Attention Token (BAT) jumped by 32.6 per cent.
Clearing some of the air around uncertainty and confusion on the draft Crypto bill, Finance Secretary TV Somanathan on Thursday in an interview with CNBC-TV18 said that people had just overreacted to the development of the crypto bill which will be tabled in the parliament’s winter session.
“However, one thing I can say very clearly is that crypto will not be legal tender by any means. Gold is not a legal tender, silver is not a legal tender and alcohol is also not a legal tender, beyond that I will not be in a position to say anything more,” he said.
Employees of cryptocurrency companies in India are a worried lot as the fate of the industry hangs in the balance.
Vinshu Gupta, Founder and Director, Nonceblox Blockchain Studio said “It is easy to use privacy coins to launder money or use a crypto mixer to hide drug or blood money but crypto also employs over 50,000 people in India and has immense potential to push India as a true 21st century super power.”
“The crypto industry needs regulation but it should be inclusive. A taxation process like TDS where profits are taxed at withdrawal sources in India like exchanges is a good strategy to start. The more it becomes an open-ended ecosystem, the more value it will bring to the Indian economy,” he added.
Cryptocurrencies have gained prominence ever since the RBI ban was lifted in March 2020. India now has 15 home-grown crypto currency exchange platforms, consisting of more than 10 crore investors. According to broker discovery and comparison platform BrokerChooser, the total number of crypto owners in India now stands at 10.07 crore, which puts it ahead of every other country in the world. US stands at second position with the number of crypto owners at 2.7 crore, followed by Russia (1.7 crore) and Nigeria (1.3 crore). In comparison, the number of stock investors registered with the BSE/NSE in India has risen to 7.4 crore at present while for mutual funds it stands at 11.4 crore. In terms of share of crypto investors as a percentage of the population, India stands at fifth position at 7.3 per cent trailing Ukraine (12.7 per cent), Russia (11.9 per cent), Kenya (8.5 per cent) and US (8.3 per cent).
Indian crypto investments cross $10 billion
According to crypto research and intelligence business CREBACO, Indian crypto investments have increased to over $10 billion from $0.9 billion in April 2020, as crypto markets touched all-time highs.
“Currently, the government is set to introduce ‘The Cryptocurrency and Regulation of Official Digital Currency Bill, 2021’ in the winter session of Parliament beginning 29 November for consideration and passing. The bill aims to create a facilitative framework for the creation of the official digital currency to be issued by the RBI. It also seeks to prohibit all private cryptocurrencies in India, however, it allows for certain exceptions to promote the underlying technology of cryptocurrency and its uses. Currently, there is a lot of uncertainty but the government is making efforts to soon put out proper regulation with regards to crypto investment as it is quickly getting widespread across India,” said Hemang Jani, Head – Equity Strategy, Broking & Distribution, Motilal Oswal Financial Services.
Prevention is better than cure, you must have heard this many times. This goes the same here. Take a break from your credit cards or even freeze your card to reduce the temptation to take on extra debt. Prepare a budget to get an overview of all your expenses. A budget is surely a tool that could smartly tackle the debt. Knowing your expenses reduces your unwanted spending.
2. Increase your income
Increasing your income is the first and one of the smartest ways to reduce your debt temptation. The more revenue you put toward your debt, the sooner you’ll be able to eliminate it completely. Get yourself involved in putting some extra income which could help reduce your debt burden in the meantime.
3. Build an Emergency Fund
Building an emergency fund is another smart way of reducing the debt temptation. It sounds counter-intuitive but it is effective in reducing any potential debt. It allows your use in reducing the debt instead of touching your saving account. These savings offer you a safety net that you can utilize for unexpected needs, it also prevents you from going for your credit card.
4. Inquire with your Creditor for a lower interest rate
A higher interest rate does nothing but increases your debt hole because the interest amount goes towards the monthly interest charge making your actual balance higher. It is always to inquire your creditor (credit card issuers) for a lower interest rate. Interest rates are negotiable and asking for a lower interest rate could help you to reduce your debt. If you have a good payment history it is more likely to could get a power interest rate on your credit card.
5. Withdraw from your Retirement fund
Withdrawing from your retirement fund is another smart way to reduce your debt, but it should be your last option in the extreme case. It is highly recommended only in cases when you have no other option or you have other sources of income besides your monthly income. It is important to understand that Retirement fund withdraw could impact your saving post-retirement along with your interest, capital, and dividends, you could have earned from that money.
6. Debt Settlement
If you owe more than what you can repay in the set time period or your accounts are past the due date, debt settlement may be a good option to consider. In debt settlement, you ask your creditor to consider a one-time or lump-sum payment that is less than the whole total in order to settle down the bill completely. Creditors usually accept settlement proposals only on accounts that are in default or are about to default.
Debt settlement can have a negative impact on your credit score and should be utilized only as a last resort. Debt settlement could be also done by negotiating directly with the creditor. It’s a good option to negotiate directly or take the help of a reputable debt relief company.
7. Credit Counselling Agencies
It’s always good to take advice and suggestions when you lack ideas. Credit Counselling is one of the smartest ways to bring your debt in control. There are a number of credit counseling agencies that could help you in managing your finance and settling down your budget issues. These agencies are organizations or companies with a deep understanding of finance and credit issues.
All you need to do is send a lump-sum payment amount to the agency every month, and they will break it up and deliver it to your creditors on your behalf. Credit counseling differs from debt settlement in that it does not need you to be in default, and the aim is to pay off your debts in full.
FILE PHOTO: An India Rupee note is seen in this illustration photo June 1, 2017. REUTERS/Thomas White/Illustration/File Photo
Lenders may soon be able to lay their hands on overseas assets of defaulting firms and personal guarantors.
The government has proposed adopting a global model law that will enable lenders to apply the Insolvency and Bankruptcy Code to defaulters’ assets lying overseas. These will include the offshore personal assets of the promoter if they have issued a personal guarantee. The changes would also allow the execution of orders against defaulters by overseas courts that have adopted the model law.
The government has invited public comments on the proposed modifications by December 15.
The model law lays down the basic framework for cooperation between domestic and foreign courts and domestic and foreign insolvency professionals.
Personal guarantors
In the case of a personal guarantor, their ‘habitual’ place of residence will be taken into account to decide the jurisdiction where the main bankruptcy proceedings will happen. Debt recovery tribunals and the National Company Law Tribunal (NCLT) benches and their appellate tribunals are platforms where overseas creditors could initiate or participate in proceedings against personal guarantors in India.
The introduction of a cross-border insolvency law in the IBC, that is in line with international best practices and suitable for the Indian context, may be beneficial to all stakeholders. Draft part Z, as recommended by the insolvency law committee, is under consideration for enactment,” the ministry said, while proposing the additional measures regarding personal guarantors.
The changes were proposed after the ILC, constituted under the corporate affairs ministry to review the implementation of the IBC, noted the lack of a framework for cross-border insolvency. The government has decided to put in place a comprehensive framework for this purpose based on UNCITRAL model law on cross-border insolvency, which could be made a part of the IBC by inserting a separate chapter for this purpose.
In January 2020, the government had constituted a crossborder insolvency rules/regulations committee to recommend subordinate legislation.
Banks have approached the National Company Law Tribunal for invoking personal guarantees of promoters of 17 defaulting companies.
The defaulting promoters include those of Punj Lloyd, Amtek Auto, ABG Shipyard, Videocon, Varun Shipping, and Lanco, according to reports.
Armed with a Supreme Court order, banks are looking to invoke personal guarantees of tycoons from Venugopal Dhoot to Kapil Wadhawan to recover unpaid loans from their delinquent firms
The guaranteed debt
According to an estimate, the top 10 personal guarantors have guaranteed debt of over Rs 1.6 lakh crore. Among the big names, former promoters of Bhushan Steel and Power Sanjay Singhal and his wife Aarti Singhal had furnished personal guarantees worth up to Rs 24,550 crore to take loans from a consortium of bank led by State Bank of India.
The former promoter of Reliance Communications, Anil Ambani, has also given a personal guarantee against the loan taken. Erstwhile promoter Wadhawan stands guarantee to loans taken by DHFL, which is sitting on debt of about Rs 90,000 crore, while Dhoot has also given a personal guarantee to a portion of Rs 22,000 crore loan to Videocon.
NEW DELHI: Shares of Indiabulls Housing climbed 4 per cent in Friday’s session after Societe Generale and BNP Paribas Arbitrage sold 51 lakh shares of the housing finance company for around Rs 113 crore through open market transactions on Thursday.
The scrip touched a high of Rs 236.50 as against the previous close of Rs 226.55 on the BSE.
According to data on bulk deals available from the National Stock Exchange, Societe Generale offloaded 27.40 lakh shares of Indiabulls Housing Finance while BNP Paribas Arbitrage sold 23.59 lakh shares of the domestic housing finance company.
The stocks were sold in the range of Rs 221.34-221.75 piece per share, the data showed. As of September 2021, Societe Generale held 58.77 lakh shares amounting to a 1.27 per cent stake in Indiabulls Housing, while BNP Paribas Arbitrage shareholding was 71.82 lakh shares or 1.56 per cent.
Reports said on Wednesday that the company was committed to de-promoterising, with the promoter –led by Sameer Gehlaut—likely to pare stake below 10 per cent from the present quantum of 21.69 per cent.
Indiabulls Housing may be considering secondary market transactions such as through qualified institutional placement or an offer-for-sale in its efforts to reduce promoter stake, reports said.
The National Stock Exchange had on Thursday barred Indiabulls from trading in the futures and options segment as the derivative contract of its securities had breached 95 per cent of the market-wide position limit.
In the underwriting auctions conducted on November 26, 2021 for Additional Competitive Underwriting (ACU) of the undernoted Government securities, the Reserve Bank of India has set the cut-off rates for underwriting commission payable to Primary Dealers as given below:
The brokerage has said that the company’s “Consolidated revenue grew by 17% YoY to Rs 215cr driven by higher realisation. However, on a sequential basis revenue growth was muted at 3.4% due to underperformance of the domestic market on account of staggered lockdowns. Company-wise Standalone (Precision Camshaft) revenue stood at Rs 120cr while subsidiary companies’ revenue for MEMCO/MFT/EMOSS stood at Rs 14/43/46cr respectively. EBITDA increased 56% YoY on account of lower raw material expenses. EBITDA margins expanded ~340bps to 13.7%. PCL reported a PAT of Rs 20cr against Rs 10cr in Q2FY21. Adjusting for exceptional items, PAT increased by 89% to Rs 8cr.”
According to HDFC Securities “PCL received compensation for the canceIlation of the order and sunk cost from a customer amounting to Rs 24.9cr offset partly by Impairment of property, plant & equipment amounting to Rs 11.8cr during the quarter. Company-wise Standalone (Precision Camshaft) EBITDA stood at Rs 21cr while subsidiary companies’ EBITDA for MEMCO/MFT/EMOSS stood at Rs 3.0/5.2/4.6cr respectively. Revenue from European operation increased 11% YoY to Rs 117cr and accounted for 55% of total revenue, down from 57% in Q2FY21. Domestic revenue grew 37/22% YoY/QoQ to Rs 70cr.”
The brokerage’s take on Precision Camshafts Ltd.
The brokerage in its research report has said that “The performance of Precision Camshaft Ltd (PCL) was impacted over the last few years due to a global slowdown in the automobile industry which was further complicated by Covid related disruption. The company also had to incur losses in its Chinese JV. The global recovery in automobile demand and improving performance of its subsidiary companies augur well for future growth. Although the adoption of EV could put a dent in the camshaft market, we believe mass adoption of EVs is still some time away and PCL would benefit from the rising demand of ICE vehicles till then. Nevertheless, the company has made strides towards participating in the EV opportunity by acquiring Emoss (its 100% owned European subsidiary), which produces and supplies electric drivetrains and has successfully demonstrated capabilities to retrofit in ICE based buses and other heavy vehicles.”
The brokerage has also stated that “Apart from this, it also offers high-end battery systems, fuel cells, range extenders, generators, power electronics and control systems suitable for different industries. Acquisition of MFT, a specialist in machined components has resulted in broadening PCL’s product portfolio and has given access to developed markets of Europe and North America. The group’s automotive component business is now well diversified in terms of product as well as customer base where no single customer contributes to more than 23% of revenues. The company is debt-free on a net basis with strong free cash flow generation which it can utilize for any inorganic growth opportunities.”
Buy Precision Camshafts Ltd. with a target price of Rs. 168
According to the brokerage’s call “We expect PCL’s revenue/EBITDA/PAT to grow at 16/31/173% CAGR over FY21-FY24, led by the increased demand from the domestic automobile industry and strong growth in the European business. We expect RoE to improve from 0.5% in FY21 to 8.6% in FY24. We believe investors can buy the stock in the band of Rs 143-146 and add on dips to Rs 125-128 band (22.5x Sep-23E EPS) for a base case fair value of Rs 157 (28x Sep-23E EPS) and bull case fair value of Rs 168 (30x Sep-23E EPS) over the next 2 quarters.”
Disclaimer
The stock has been picked from the brokerage report of HDFC Securities Limited. 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.
The Current Market Price (CMP) of Divi’s Laboratories is Rs. 4716 The brokerage firm, ICICI Direct has estimated a Target Price for the stock at Rs. 5600. Hence the stock is expected to give a 17% return, in a Target Period of 1 year.
Stock Outlook
Current Market Price (CMP)
Rs. 4716
Target Price
Rs. 5600
1 year returns
17.00%
Company performance
The pharma sector overall has performed quite well during the pandemic. The brokerage firms stated that Divi’s Laboratories had lower than estimated results in Q2FY22 as higher CS nullified by muted generics. The company’s sales were up 13.6% YoY to Rs. 1987.5 crore, while EBITDA in Q2FY22 was at Rs. 818 crore, up 10% YoY with margins at 41%. Consequent adjusted PAT was at Rs. 606.5 crore (up 16.7% YoY). ICICI Direct commented, “The company has been building capacities in a few more niche APIs as per the evolving demand scenario in the backdrop of ‘China plus one’ opportunities.”
Comments by ICICI Direct
According to ICICI Direct, “Divi’s share price has grown by ~3.9x over the past five years (from ~Rs. 1198 in June 2016 to ~Rs. 4716 levels in November 2021). Maintain BUY on the back of strong outlook both in CS and generics based on significantly high visibility CAPEX and customer stickiness.”
About the company
Divi’s is engaged in manufacturing generic APIs and intermediates, custom synthesis (CS) of active ingredients and advanced intermediates for pharma MNCs, other specialty chemicals like Carotenoids, and complex compounds like peptides and Nucleotide revenues. The company is progressing on the Kakinada greenfield project (planned outlay Rs. 1000-2000 crore).
Disclaimer
The above stock was picked from the brokerage report of ICICI Direct. 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.
The Thrissur-based ESAF Small Finance Bank Limited has announced the latest “ESAF Go Green” range of electric vehicle loan schemes. The launch coincides with COP26.
“ESAF Go green” loans validate ESAF Small Finance Bank’s social business strategy seeking a triple bottom line impact; people; planet; and prosperity. We believe that these products will help the customers discover the eco-friendly electric vehicles at low-interest rate, zero foreclosure charges, minimal processing fee and zero documentation charges.” ESAF Small Finance bank said in a statement.
The government and local bodies have introduced concessions and incentives to increase the use of electric vehicles which are beneficial to consumers and the environment. The government had also given special consideration in the budget to promote the use of electric vehicles. ESAF Small Finance Bank caters to more than 46 lakhs customers through its 550 banking outlets across 21 States and two UTs.
According to bulk deal data available with the NSE, Societe Generale sold 27.40 lakh shares of Indiabulls Housing Finance while BNP Paribas Arbitrage divested 23.59 lakh shares of the company.
The shares were offloaded in the range of Rs 221.34-221.75 apiece, valuing the transaction size to Rs 113 crore.
As of September 2021, Societe Generale held 58.77 lakh shares, amounting to 1.27 per cent stake in the company, and BNP Paribas Arbitrage owned 71.82 lakh shares or 1.56 per cent stake in the firm.
On Thursday, Indiabulls Housing Finance shares ended 6.82 per cent higher at Rs 229.45 apiece on the NSE.
