Category: Personal Finance

Public Provident Fund (PPF)

Investment in PPF is best among the tax saving scheme u/c 80C. PPF is best for taxpayer who wants to put their money in funds for retirement savings. It promises to generate a return that is mostly in line with inflation. PPF could start with a deposit of Rs 500 per financial year with a maximum deposit of Rs 150000 lakh. 15 years is the maturity period of the PPF. However, after 5 years the amount can be withdrawn if certain conditions are met. Without any doubt, PPF is the best investment scheme when it comes to tax saving. The interest under the PPF is also exempt from tax, which is another big benefit. The only drawback for the scheme is that one has to hold for the longer term, though the interest is fantastic on the same.

5 year Bank Fixed Deposit

This is among the best tax-saving investment scheme offered by the banks. 5 yeas bank Fixed Deposit offers high return and saves tax as well. This scheme comes under section 80C of the Income Tax Act, 1961. In this, scheme, the amount invested cannot be withdrawn before 5 maturities. Although there are various types of FDs available in this tenure range, this one is best for tax saving. Various banks offer this scheme but the interest offered by the Yes Bank is highest among all that is 6.75% for a period of 5 years. The interest earned on the investment is eligible for tax exemption under section 80C.

Equity Linked Saving Scheme (ELSS)

ELSS is one of the tax-saving investment schemes under section 80C of the Income Tax Act, 1961. ELSS allows you to receive a tax credit of up to Rs 1,50,000 a year and save up to Rs 46800 in a financial year. It has the shortest lock-in period of all the options, at just 3 years. During the lock-in period, the dividend can be used to earn a consistent return. The capital gains and returns up to Rs 1 lakh are tax-free and after that LTCG (Long-Tern Capital Gains) tax is applicable at 10%. The deduction can be simply claimed under section 80C of the Income Tax Act, 1961. ELSS is one of the best tax-saving investment schemes for any taxpayer who is planning to save tax with a higher return.

Other tax saving scheme

Other than these 3 attractive tax-saving investment schemes, various other schemes are there that offer a good return and save tax. United Linked investment Pla, Premium Life Insurance, National Pension Scheme, and Senior Citizen Savings Scheme (SCSS) are a few of them.

DCB Bank FD Rates

Regular customers will now receive a 4.35 percent interest rate on single deposits of less than Rs.2 crore maturing in 7 to 90 days. DCB Bank is currently providing 5.05 percent and 5.25 percent interest rates on term deposits maturing in 91 days to less than 6 months and 6 months to less than 12 months. The bank is providing the general public an interest rate of 5.55 percent and 5.30 percent on deposits maturing in 12 months and more than 12 months to less than 15 months, respectively.

Regular customers will now get a 5.50 percent interest rate on deposits maturing in 15 months to fewer than 700 days. DCB Bank is now promising an interest rate of 5.95% and 5.50% to the general public on their deposits maturing in 700 days and more than 700 days to less than 36 months. On single deposits maturing in 36 months to 120 months, regular customers will get an interest rate of 5.95%.

DCB Bank FD Rates For Senior Citizens

Senior citizens will continue to get an additional rate of 0.50% on their deposits of less than Rs. 2 Cr maturing in 7 days to 120 months. Here are the new interest rates on fixed deposits of DCB Bank that senior citizens will get respectively.

DCB Bank NRO FD (Non-Resident Ordinary Fixed Deposit) Interest Rates

The bank has also altered its interest rates on Non-Resident Ordinary Fixed Deposits of less than Rs. 2 Cr. Following are the recent interest rates applicable on Non-Resident Ordinary Fixed Deposits by DCB Bank.

Target Price

The Current Market Price (CMP) of Balkrishna Industries Ltd is Rs. 2246 The brokerage firm, Sharekhan has estimated a Target Price for the stock at Rs. 2700. Hence the stock is expected to give a 20.21% return, in a Target Period of 6 months.

Company performance

Balkrishna Industries Ltd. reported lower-than-expected operational performance, led by increased raw-material price and higher freight rates. Net revenue grew by 32.1% y-o-y to Rs. 2,050 crore in Q2FY2022, driven by 18.8% volume growth at 72,748 MT of tyres and 11.2% improvement in average realisation. EBITDA margin declined by 350 bps q-o-q to 25.4% in Q2FY2022 due to rise in raw-material costs and increased freight rates. As a result, EBITDA and adjusted PAT improved by 2% y-o-y and 11.1% y-o-y to Rs. 519 crore and Rs. 377 crore, respectively. The brokerage firm has mentioned that the stock trades at P/E multiple of 21.6x and EV/EBITDA multiple of 15.1x its FY2023E estimates.

Comments by Sharekhan

According to Sharekhan, “We upgrade our rating on Balkrishna Industries Ltd.’s to Buy with a revised PT of Rs. 2,700 given robust outlook and earnings growth. We expect strong double-digit volume growth in FY2022E, driven by infrastructure creation and pick-up in economic activity and continued market share gains.”

About the company

Balkrishna is one of the leading manufacturers of over-the-highway tyres. The company makes tyres that are used in various applications, including agricultural, construction, and industrial vehicles as well as earthmoving, port, mining, ATV, and gardening. Balkrishna is a global player present in Europe, US, and India.

Disclaimer

The above stock was picked from the brokerage report of Sharekhan. 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.

IDFC First Bank FD Rates

On fixed deposits of less than Rs 2 Cr maturing in 7 days to 29 days, regular customers will now get an interest rate of 2.50%. On deposits maturing in 30 days to 90 days and 91 – 180 days, the general public will now receive an interest rate of 2.75% and 3.25% respectively. Whereas fixed deposits maturing in 181 days – less than 1 year and 1 year – 2 years will now fetch an interest rate of 4.75% and 5.25% respectively. Regular customers will now get an interest rate of 5.75% and 6.00% on their deposits maturing in 2 years 1 day – 3 years and 3 years 1 day to less than 10 years.

IDFC First Bank FD Rates For Senior Citizens

On their domestic term deposits, senior citizens will continue to get an additional rate of 0.50% over the rate applicable to the general public. Following the most recent revision made on fixed deposit interest rates by the bank, senior citizens will now have interest rates of 3.00% to 6.50% on their deposits maturing in 7 days to less than 10 years.

IDFC First Bank Recurring Deposit (RD) Rates

On November 23, 2021, the bank also adjusted its interest rates on domestic, NRE, and NRO recurring deposits (RD) which are as follows.

2QFY22 performance of Engineers India Ltd.

According to Motilal Oswal, “ENGR’s 2QFY22 revenue was 12% below our estimate, with the miss led by lower than expected revenue in the Consultancy segment. Operating profit came in line with our estimate, with a favorable revenue mix (54% share of Consultancy segment revenue) leading to a higher than estimated EBITDA margin at 9.3% (est. 8.2%). Lower than expected other income led to adjusted PAT 15% below our estimates. Order inflows in 2Q/1HFY22 stood at INR11.7b/INR14.5b (+96%/+115% YoY), and ~30% higher v/s 1HFY20 levels, thereby indicating a revival in ordering activity in its key end-market of Oil and Gas. While Oil and Gas continue to remain a key end-market for ENGR, the management is exploring other end-markets where its expertise can be implemented (Biofuels).”

The brokerage has said in its research report that the company’s “Order book declined by 11% YoY to INR80.3b, with an order book-to revenue ratio at 2.8x – the lowest in the last four years. Owing to superior execution and lower than expected order inflows, a depleting order book remains a concern, though it is not alarming at this stage.”

The company’s “Other income stood at INR284m (below our estimate of INR400m). PBT stood at INR832m, down 33% YoY and 11% below our estimate. The effective tax rate stood at 28.5% (v/s 25.3% YoY). Adjusted PAT stood at INR595m, down 36% YoY and 15% below our estimate. Consultancy revenue stood flat YoY at INR3.5b in 2QFY22. PBIT declined by 150bp YoY to 25.5%. Order inflow stood at INR11.7b. Turnkey: Revenue fell 12% YoY to INR3b in 2QFY22. PBIT increased by 60bp YoY to 2.5%” said Motilal Oswal in its research report.

Buy Engineers India Ltd with a target price of Rs. 95

According to the highlights from the management commentary, the brokerage has said that “In the non-Oil and Gas space within the Consultancy segment, its decision to undertake new projects won’t solely be dependent on margin, but will be strategically evaluated on a case-to-case basis. ENGR aims to win ~INR18b worth of orders in 2HFY22.”

According to the brokerage’s call “We maintain our earnings estimate and forecast a revenue/EBITDA/PAT CAGR of – 6%/14%/11% over FY21-24E. We expect a reversal in revenue mix in favor of the Consultancy segment to aid profitability over FY22-24E. We maintain our Buy rating with a TP of INR95 per share, assigning INR71 to its core business (11x FY24E core EPS) and INR24 for cash on its books.”

Disclaimer

The stock has been picked from the brokerage report of Motilal Oswal Financial Services 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.