Category: Personal Finance

Reliance Industries

Reliance Industries Limited, headquartered in Mumbai, India, is an Indian multinational conglomerate business. Energy, petrochemicals, natural gas, retail, telecommunications, mass media, and textiles are among RIL’s diversified activities.

Reliance Industries has a market capitalization of Rs 14,77,782.78 crore as of August 2021. Reliance Industries is the world’s 56th most valuable corporation by market capitalization.

Tata Consultancy Services

Tata Consultancy Services is an Indian multinational information technology services and consulting firm with headquarters in Mumbai, Maharashtra, and its main campus in Chennai, Tamil Nadu. TCS is the world’s largest IT services firm by market capitalization as of February 2021.

The shares of TCS appreciated 76.86 percent over three years, compared to 40.63 percent for the Nifty 100. Over a three-year period, the stock returned 76.86 percent, while the Nifty IT delivered investors a 122.28 percent return. TCS has a market capitalization of Rs 13,36,541 as of August 2021.

HDFC Bank

HDFC Bank Limited, headquartered in Mumbai, Maharashtra, is an Indian banking and financial services firm. As of April 2021, HDFC Bank is India’s largest private sector bank in terms of assets and market capitalization. It is the third-largest company by market capitalization on the Indian stock exchanges.

Stock generated 50.62 percent over three years, compared to 40.63 percent for the Nifty 100 index. Over a three-year period, the stock returned 50.62 percent, while the Nifty Bank provided investors a 26.19 percent return. HDFC has a market capitalization of Rs 8,61,533 as of August 2021.

Infosys

With Monday’s increase in Infosys’ share price, the Bengaluru-based IT firm’s market capitalization surpassed 7.45 lakh crore ($100 billion). After Reliance Industries, Tata Consultancy Services, and HDFC Bank, Infosys became India’s fourth firm to reach the $100 billion mark, according to stock exchange data.

The Infosys shares generated 149.71 percent over three years, compared to 40.63 percent for the Nifty 100 index. Over a three-year period, the stock returned 149.71 percent, compared to 122.28 percent for the Nifty IT index.

This case study of Indian Bank’s merger process can be used by faculty and trainers from various business schools and organisations, globally.

Indian Bank has featured in the Harvard Business Publishing for its successful merger with Allahabad Bank. The first-of-its-kind seamless merger of equal-sized Indian banks, with prominence in the southern and eastern regions of the country, has been well recognised and published by Harvard Business Publishing as a case study.

Curated by Indian School of Business (ISB), this unique case study titled ‘Merger of Equals: The Amalgamation Story of Indian Bank and Allahabad Bank’ encapsulates the remarkable journey that Indian Bank embarked on to successfully execute the amalgamation process.

‘Merger of Equals’ narrates the entire integration process, which comprised rigorous strategic planning and execution by Indian Bank, with special focus on the challenges faced and their answers found. The merger has made Indian Bank a pan-India lender, with significant presence in southern, northern and eastern parts of the country.

A release by Indian Bank said the amalgamation exercise ‘Project Sangam’ entailed a three-pronged approach on product / process, employee-customer communication and IT integration. The synergy benefits of the merger have started reflecting in terms of cost efficiencies as evidenced in the decline in cost-to-income ratio of the bank (40.86% for QE June 2021). The integration of IT operations and systems have also resulted in economies of scale through vendor rationalisation, finer pricing on AMCs and improved operational efficiencies.

Padmaja Chunduru, MD and CEO of Indian Bank, said, “We are privileged to witness our amalgamation process featured in the leading publication of one of the most prestigious institutions of the world. This is a testimony to the constant dedication and sincerity of the entire Indian Bank team which helped achieve this strategic merger. We would like to take this opportunity to thank ISB and Harvard Business Publishing for acknowledging the efforts of Indian Bank.

The merger has given Indian Bank a distinct experience of building synergies between two banks with vast legacies. We hope this case study will help readers understand the big picture of this exemplary merger.”
The two banks merged efficiently while addressing the challenges of human capital, varied cultures and geographic locations.

This case study of Indian Bank’s merger process can be used by faculty and trainers from various business schools and organisations, globally.

Buy Bharat Forge for 25% returns, says Emkay Global

Emkay Global sees the possibility of a rally in the stock of Bharat Forge from the current levels of Rs 741 to levels of Rs 920 in 1 year’s time. This implies a return of nearly 25% on the stock from current levels.

The company is the world’s leading forging manufacturer. “Bharat Forge’s revenue is expected to grow by 51% in FY22E, led by a strong performance in Automotive and Industrial segments. Moreover, customer additions, higher content and portfolio expansion should boost growth. Nascent segments, such as Defense, Railways, Aerospace, E-mobility and Light-weighting solutions, are expected to see robust growth,” Emkay Global has said.

Although the outlook for the global passenger vehicle’s segment has been lowered, the segment is expected to clock double-digit growth, owing to the pending order book, better macros and low channel inventory, Emkay Global has said. The outlook has been improved for the industrial segments, such as construction equipment and tractors. The global oil & gas segment is expected to witness a multi-year upcycle.

“Our positive view on Bharat Forge is underpinned by its leadership position in automotive forgings, focus on diversification and an expected recovery in the core segments. We

have a Buy rating on the stock with a target price of Rs 920, based on 27 times P/E for the standalone business on Sep’23E EPS,” the brokerage has said.

Tata Steel

Geojit has a buy call on the stock of Tata Steel. Tata Steel is a leader in the global steel industry with operations spanning over 26 countries with key operations in India, Netherlands and United Kingdom. Tata steel primarily caters to customers in automotive, construction, engineering, energy and power sectors

The company has accelerated capital expenditure allocation for expanding Kalinganagar – already spent Rs. 2,000 crores; Expected capex for FY22 is at Rs. 10-12kcrores and the 6 MTPA pellet plant and 2.2mn CRM complex are expected to be commissioned by H1FY22.

“We expect robust domestic demand recovery post pandemic accompanied by further deleveraging efforts and efficient capital allocation ensuring liquidity. We remain positive on the stock and reiterate our BUY rating on the stock with a revised target price of Rs. 1,745 using SOTP valuation,” the brokerage has said.

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 is picked from the brokerage reports of Emkay Global and Geojit Securities. Be careful while investing as the Sensex has now reached the 56,000 points mark. Investors can invest small amounts and avoid putting lumpsum.