Category: Personal Finance

1. Tatva Chintan Pharma IPO:

The specialty chemicals manufacturing company that issued an IPO to mobilize Rs. 500 crore as against the issue price of Rs. 1086, listed with gains of 95% at a price of Rs. 2111 per share on the listing and still gained further to a price of Rs. 2318.

The stock’s day high and low price are Rs. 2534.2 and Rs. 2111, 85. The top high made during the day indicated a gain of 133%. The IPO of Tatva Chintan is the second most subscribed IPO for the CY 2021.

2. GR Infraprojects:

This is another real estate company that on listing doubled investors’ wealth. The company on the NSE debuted at a price of Rs. 1715.85 per share as against the issue price of Rs. 837 per share. The company launched an IPO to mop up Rs. 936-crore. Last the scrip of GR Infraprojects traded at a price of Rs. 1760.

3. Happiest Minds:

The mid tier IT firm that made its listing last year made a robust listing at a premium of 111% percent against the issue price of Rs. 166. Prospects of the digital segment as well as strong fundamentals, management propelled the listing gains for the scrip. Listing price was at Rs. 351. As of last trade, the firm commands a market cap of Rs. 19,730 crore.

4. Clean Science:

The Maharashtra Pune-based fine chemical manufacturing and exporting company of India also nearly doubled investors’ money on the listing day. The scrip listed at a premium of 98% at a price of Rs. 1784.4. The company’s financials are robust in the segment. Others positives that drove listing gains include its ESG focus as well as diversified product line up.

5. Burger King:

This is a QSR company that also nearly doubled investors’ money on the listing day by listing at a premium of 92%. The scrip listed in December 2020 at a price of Rs. 115.4 per share on BSE, up 92% from the issue price of Rs. 60 per share.

IPOs That Have Doubled Investors’ Money On Listing

Conclusion:

Ideally though IPO listing gains in recent time as listed above can be overwhelming to the tune of 100% or even higher, none can with certainty ensure such high returns. The factors that determine listing gains for a scrip are intrinsic to the company as well as depend on the market momentum. Even a good company with sound fundamentals may see a weak listing owing to weak market momentum. And even if you make some mind boggling returns on the first day of the company hitting the Indian bourses and are not sure of its outlook going ahead, you may even book partial profits in the scrip.

GoodReturns.in

Key details of amendment in DICGC Act

• The Union Cabinet has agreed that fixed deposit investors can claim or recover the money deposited within 90 days once a responsible bank goes under a moratorium.
• The initial 45 days will be set aside for banks in bankruptcy to be handed over to the Deposit Insurance and Credit Guarantee Corporation. FM stated that the procedure will be finished without having to wait for a settlement within 90 days.
• All commercial banks in India, including subsidiaries of overseas banks operating in India, would be subject to this law, which will also apply to institutions that are now subject to a moratorium.
• Sitharaman further stated that the DICGC Act will insure 98.3 percent of all bank accounts, with above 50 percent coverage in respect of deposit amount.
• She further added that “Each depositor’s deposit in a bank is insured up to a maximum of Rs 5 lakh, for both principal and interest. Now in India, with an increase in insurance amount from Rs 1 lakh to Rs 5 lakh, this insurance is going to cover 98.3% of all deposit accounts. This clearance now, therefore, is going to give relief to all those institutions which have already come under moratorium. It is not going retrospectively back, but if your bank has already been declared under moratorium, this will cover.”

Which deposits are covered under DICGC?

Except for the deposits listed below, the DICGC protects all deposits, including savings, fixed, current, and recurring deposits.

• Deposits of foreign Governments;
• Deposits of Central/State Governments;
• Inter-bank deposits;
• Deposits of the State Land Development Banks with the State co-operative bank;
• Any amount due on account of and deposit received outside India
• Any amount, which has been specifically exempted by the corporation with the previous approval of the Reserve Bank of India.

How does DICGC insurance cover works?

By citing an example on its official website, DICGC has stated that “The DICGC insures principal and interest upto a maximum amount of five lakhs. For example, if an individual had an account with a principal amount of 4,95,000 plus accrued interest of 4,000, the total amount insured by the DICGC would be 4,99,000. If, however, the principal amount in that account was five lakhs, the accrued interest would not be insured, not because it was interest but because that was the amount over the insurance limit.” Before deposit insurance is computed, all deposits held in the same kind of possession at the same bank are summed together. According to the DICGC Act, if the funds are under various forms of possession or are placed in different banks, they will be individually insured.

List of banks insured by the DICGC

Except for primary cooperative societies, the following banks are DICGC-insured.

For more information, you can visit https://www.dicgc.org.in/FD_ListOfInsuredBanks.html

Buy, the stock for an upside target of Rs 5,755

Emkay Global has a buy on the stock with a price target of Rs 5,755, which is almost 20% higher than the current market price of Rs 4,733.

According to Emkay Global, the management has guided for a meaningful profitability improvement from the second quarter of FY 2021-22 and also reiterated its long-term EBITDA guidance of 25%. “While higher SG&A expenses are expected to continue, increased investment in the branded markets will be more than offset by higher growth,” the brokerage has said.

The management of the company has also indicated that profitability will improve meaningfully from second quarter of FY 2021-22, driven by the ramp-up of recently launched products, higher growth in the branded markets and an increase in active pharmaceutical ingredients scale. According to Emkay Global, the management also reiterated its long-term EBITDA margin guidance of 25%.

Dr Reddy’s: Long term value of the stock remains attractive

Emkay Global says that it continues to remain positive on the company as it believes Dr Reddy’s Labs has good US pipeline visibility. “In addition, the company’s steadfast focus on the India business continues and should drive 220 basis points growth outperformance relative to the India pharma market, along with margin expansion, as the sales force remains stable. The company’s strategy of leveraging the US portfolio for Europe and ROW is expected to drive growth and margin accretion in the medium term,” the brokerage has said.

The stock is trading at an attractive valuation of 24 times 1-year forward P/E vs. the historical average of 26 times, the brokerage has noted. “Our target price of Rs 5,755 represents a P/E of 21 times on FY24E core EPS (Rs246) and we have a buy on the stock,” the brokerage says. The stock of Dr Reddy’s was last seen trading at Rs 4744 on the BSE. The stock had plunged 10% earlier this week post the quarterly numbers that were declared, which were below street estimates. In fact, as we write the stock is also lower than the current market price mentioned in the brokerage report.

Disclaimer

The stock recommendation mentioned above is from the report of Emkay Global. However, neither the author, nor Greynium Information Technologies Pvt Ltd would be responsible for the losses incurred based on a decision from the article. Investors are advised caution given that the Indian stock markets have rallied significantly from the lows of last year. Only investors who have the appetite to take risk should buy.