Category: Personal Finance

1. Rail Vikas Nigam:

Rail Vikas (RVNL) on June 29, 2021 announced a final dividend of Rs. 0.44 per share for which the stock shall turn ex-dividend on November 30. Record date for the same is December 2, 2021. Notably, record date is the date on which the company declaring dividend decides on the shareholders who are eligible to receive the announced dividend. Payment date for this dividend could be January 7, 2022.

For the year ending March 2021, Rail Vikas Nigam has declared an equity dividend of 15.80% amounting to Rs 1.58 per share. At the current share price of Rs 36.5 this results in a dividend yield of 4.37% which is quite attractive.

RVNL is a Category-I Mini Ratna CPSE under the Ministry of Railways, Government of India. The company was incorporated in the year 2003 with the twin objectives of raising extra-budgetary resources and implementation of projects relating to creation and augmentation of capacity of rail infrastructure on fast track basis.

2. Tiger Logistics:

Transport and Logistics firm, Tiger Logistics in its board meet on November 22 has declared an Interim Dividend of Re. 1 per equity share of the face value of Rs.10/- each i.e.10% for the Financial Year 2021-2022. The Company has fixed 2nd of December, 2021 as the Record Date. “The Interim Dividend will be paid on or before 21 December, 2021”, said the company’s release.

This is a small cap company with latest m-cap at Rs. 180 crore. Based out of New Delhi, the company was founded in the year 2000. Tiger Logistics is engaged in offering third party logistics services to corporate and multinational companies in India and internationally. The company’s range of services include ocean and air freight forwarding services; project cargo handling services; custom clearance services comprising handling and execution of customs brokering, documentation, and inland clearance; and warehousing and transportation services, as well as supply chain management services. The clientele’s served by the company are from varied industries including automotive and engineering, aviation, agri and perishable products cargo, consumer durables and retail, and chemicals and hazardous industries.

3. Bajaj Steel Industries Ltd:

Dividend date or ex-dividend date for the final dividend of 60% amounting to Rs. 3 per share announced on June 29 is December 2, 2021 (Thursday). Note record date for the said dividend is December 4, 2021. Bajaj Steel will be paying off this dividend by January 14, 2022.

In the previous year ending Fy 21, the dividend rate was the same at 60% with dividend amount being Rs. 3 per share, translating into a dividend yield of 0.34 percent.

Disclaimer:

Note in the story we have simply collated the stocks that are to turn ex-dividend next week and so soon will be crediting the declared dividend amount into the eligible shareholders’ account. Furthermore, story should not be construed as an investment advice into these stocks simply because of the dividend payout.

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1. Senior Citizen Savings Scheme (SCSS)

It is one of the best and widely picked schemes by retirees in India. The safety and regular income with zero risk makes it a good scheme among retirees. Also, the rate of interest that is 7.4% per annum it offers is one of the best in this segment. The tenure of this is a maximum of 5 years. The scheme is backed by the Government of India (GOI), which makes it a safe destination for your investments. It was first introduced in August 2004 by the GOI keeping senior citizens in the center.

Citizens of India aged above 60 years can invest in the scheme, except for NRIs (Non-Resident Indians) and HUFs (Hindu Undivided Families). Also, people who opted for Voluntary Retirement Scheme at 55-60 age or the retired defense personals between 50 to 60 age group could go with the scheme.

SCSS has an investment bracket of a maximum of Rs 15 Lakh and a minimum Rs 1000 investment amount. The interest payable is quarterly after your first investment. The payout is on the first date of April, July, October, and January concerning the investment date. The investment in this scheme qualifies for the benefit of the 80C section of the Income Tax Act, 1961.

2. Post office Monthly Income Scheme

As the name says the scheme offers you a monthly income on your invested amount. The scheme comes under the direct influence of the Finance Ministry of India. The scheme is not exclusive for senior citizens, which makes it a good option as any Indian Citizen above aged 10 years can invest in this scheme and earn a good return. The scheme also allows you to transfer the account to any other city if you are switching. Every month you receive the interest on your investments in your account under the scheme.

The rate of interest it offers is also high that is 6.6% p.a. as of November 2021. The minimum amount you can invest in the scheme is Rs 1500 and the maximum of Rs 4.5 lakh. Under joint account the maximum amount doubles at Rs 9 lakh. The tenure of this investment scheme is 5 years. It also allows you to continue investment after maturity for another 5 years. No TDS applies to the incomes of the scheme. However, the principal amount is taxable as the scheme is not tax-free under section 80C either.

3. Pradhan Mantri Vaya Vandana Yojna (PMVYY)

PMVYY is a newly introduced scheme by the government of India in 2017. It is a retirement cum-pension scheme managed and operated by the LIC (Life Insurance Corporation). The scheme is exclusively for the senior citizens of India aged above 60 years. The scheme is filled with great benefits, which makes it a good choice for your investment needs. Once you deposit a lump sum amount in this scheme, you will get a fixed payment on a regular basis-monthly, quarterly, half-yearly, or yearly.

The interest rate in the scheme is the highest among all three that is 7.4%. This range grew more specific based on the payout period chosen by you. The tenure of this scheme is 10 years. On premature closure of the scheme is 98% of your initial investment amount. The investment amount is not taxable, however, the return is taxable with respect to your income bracket, and the maturity amount is also taxable.

Patanjali

Patanjali is the most trusted and popular Indian brand, with recent revenues of over 200 crores. Patanjali is effectively managed with the strategy of Aacharya Balkrishna and under the leadership of Ramdev Baba, and Patanjali ayurvedic medicine is a highly valued product in the FMCG industry.

The finest feature about this franchise is that it can be established in rural, semi-rural, or metropolitan areas. You may make a lot of money if you get a Patanjali franchise, and the brand has been giving large FMCG giants giving a tough time with its extensive range of products.

Subway

Subway offers a unique partnership model, with the majority of franchises being owned by individuals or families. Subway is the world’s largest sub-sandwich chain. Fred DeLucea founded Subway in 1965 to help pay for his undergraduate tuition. Subway’s objective is to give high-quality service to its consumers at reasonable pricing, which is something that almost every company adheres to nowadays.

Franchisees who join the company’s team have the chance to own a proven lucrative business with a cheap initial investment, uncomplicated operations, customizable floor plans, national and local assistance, national and regional advertising, and much more. The franchisee should have 170 square feet for the food court and 350 square feet for non-food court space, according to Subway. The franchise requires a minimum of eight people to run it.

DTDC Courier

DTDC India, which was created in 1990, is one of India’s most popular courier businesses, with the widest network of delivery destinations and a range of local and international services. DTDC has a one-of-a-kind franchise-based business concept that offers a variety of franchise options. The franchisee structure enables new businesses get off the ground with little money and helps DTDC earn revenue. With a year-on-year growth rate of more than 15%, DTDC has showed exceptional network expansion. Over half of the franchisees have been with DTDC for more than five years and have had consistent success.

Amul

The food product marketing organisation Gujarat Cooperative Milk Marketing Federation (GCMMF) owns the brand Amul, which offers a profitable business opportunity with optimum returns on investment. The Amul Model has aided India in becoming the world’s largest milk producer. Franchisees for the Milk brand include Outlets, Railway Parlors, and Kiosks. A franchise can generate revenue of roughly Rs 5 to 10 lakhs per month or earn margins of up to 20% on sale of a variety of products, depending on the shop location. Amul-branded outlets must be between 100 and 300 square feet in size and feature an air conditioning system.

Lenskart

Lenskart is one of India’s most rapidly expanding eyeglasses companies. It has an online and offline presence. Peyush Bansal, Amit Chaudhary, and Sumeet Kapahi started Lenskart in 2010 as an online contact lens marketplace. The collection expanded to include eyeglasses and sunglasses in 2011. The brand didn’t stop there; in order to grow its retail footprint, it also opened offline outlets.

The current expansion strategy is to increase the number of offline locations from 330 to 500.

FabIndia

John Bissell launched FabIndia in 1960, and it has now become a household name. It is enjoyed by people of all ages. FabIndia has surpassed INR 1,000 crore in sales to become India’s largest retail garment brand, far outpacing competitors such as Zara and Levi’s India. The brand’s initial mission of appreciating and sharing Indian culture through clothes and other items has not changed. FabIndia has been continually adding new product categories.

EuroKids

EuroKids is one of India’s most well-known pre-school chains. It was formed in 2001 by Prajodh Rajan and Vikas Phadnis, and the success of EuroKids may be attributed to their ‘child first’ philosophy. EuroKids has grown from a publishing company to a full-fledged playschool chain with which parents across the country have placed their trust. The brand has built a fantastic name for itself as an ideal environment for growing young brains, with over 1000 pre-school centres in over 350 cities across India, Nepal, and Bangladesh. It plans to capitalise on this expansion by spending Rs 500 crores in approximately 2,000 additional schools in a variety of locales.

1. NMDC:

The brokerage firm has recommended buying the scrip of NMDC in the price range of Rs. 141-144 for a target price of Rs. 156. This implies a return to the tune of 9.6 percent from the last traded price of Rs. 142.3. The stop loss suggested for the trade is Rs. 135. Notably the ‘Buy’ on the scrip is given for a period of 14 days.

Technical observations

• The share price of NMDC has formed a potential triple bottom at the 52 weeks EMA and the 80% retracement of the preceding up move (Rs. 122-213). The brokerage expect the stock to resume up move after the current higher base formation thus the scrip offers fresh entry opportunity.

• “We expect the stock to head higher towards Rs. 156 levels in the coming weeks being the 80% retracement of the preceding decline (Rs. 160-133). The stock has already taken six months to retrace just 80% of its preceding two months rally (Rs. 122-213)”, adds the brokerage report.

• The weekly 14 periods RSI is at the cusp of generating a buy signal moving above its nine periods average thus validates positive bias in the stock of NMDC.

About NMDC:

Incorporated in 1958 as a GOI wholly owned public enterprise, NMDC is a large cap mining and minerals entity. Under the administrative control of the Ministry of Steel, the company is the country’s single-largest iron ore producer.

2. Tata Motors:

On November 17, 2021, the brokerage firm has initiated a buy on the stock of Tata Motors for a 1 month period. The brokerage house suggested to buy the scrip in the price range of Rs. 515-523 for a price target of Rs. 570, resulting in an upside of 16.5 percent from the last traded price of Rs. 489. Stop loss recommended for the investment is Rs. 475.

Technical observation on Tata Motors:

• The Nifty Auto index is at the cusp of generating a breakout above the last four year range and forming higher peak and higher trough in all time frame. Tata Motors has been an outperformer within the Auto stocks and we expect it to continue with its outperformance.

• The last four weeks’ breather has taken the shape of a bullish Pennant formation. The stock is currently seen registering a breakout above the same signalling continuation of the up move and offers fresh entry opportunity.

• ICICI Direct expect the stock to continue with its recent up move and head towards Rs. 570 levels being the 161.8% external retracement of the last four weeks breather (Rs. 530-468). The stock has already taken four weeks to retrace just 23.6% of the preceding four weeks rally (293-530), a shallow retracement signals a robust price structure and a higher base formation.

• Among the oscillators the weekly MACD remain in strong up trend and is seen diverging from its nine periods average thus validates positive bias.

Disclaimer:

These stocks provided above are taken from the brokerage report of ICICI Direct which lists them as its momentum picks. 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.

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Last few days sees relentless selling pressure by FPIs

Relentless selling pressure, is there more exit likely?

The selling pressure has been relentless and many Foreign Portfolio Investors like Blackrock Ind recently said that China looks much better than the Indian markets in terms of valuations.

According to a Bloomberg Report, Blackrock Inc. is trimming its investments in Indian equities and becoming more optimistic on China on attractive valuations amid expectations that policy hurdles will ease next year.

“Valuations are key right now,” Belinda Boa, head of active investments for Asia Pacific at the world’s biggest asset manager, said at a briefing. “Because of the outperformance we’ve seen in India this year, on a relative basis, we are starting to take profits and becoming more positive on Chinese growth stocks,” she said.

Recently, Goldman Sachs too downgraded Indian Equities citing expensive valuations. According to Goldman Sachs, the Indian equity market is trading near peak 12-month forward PE valuations of 23 times, which is at a record 60% premium to the Asia Pacific ex-Japan region. Morgan Stanley also cut India’s rating, citing expensive valuations.

US easing, inflation worries add to concerns for emerging market stocks

The US Fed has decided to trim its bond purchase programme, thus pulling back liquidity. On the other hand bond yields in the US have surged to 1.68%. Each time bond yields rise, they make emerging market stocks even less attractive.

It’s clear that bond yields across the globe are set to rise, aggravated by rising inflation. This may lead to a sharp pull back in equities going ahead. What is keeping the Indian markets afloat is the huge amount of liquidity that is flowing into domestic mutual funds. This trend is likely to continue in the future and this may lend some support to the domestic market. So far, domestic investors have bought shares worth Rs 16,000 crores. However, if we see mutual fund holdings, most of them are barely sitting on any cash. We expect the markets to continue to exhibit volatility and it is a good idea to now look at debt, if interest rates rise.

According to Siddhartha Khemka, Head – Retail Research, Motilal Oswal Financial Services Ltd the markets are likely to continue with consolidation given weak global cues, persistent FII selling and premium valuation.

“In the absence of any fresh trigger and subdued sentiments, investors would await for the fundamentals to catch up with valuations. Market could take direction from the US economic data and fears the pace of tapering to be accelerated which could prepone the interest rate hike cycle. It would also track the Covid situation in Europe which could impact the global economic activities. Monthly F&O expiry tomorrow could add to the volatility,” he says.