Category: Personal Finance

Glenmark Life Sciences IPO Opens Today: Should You Subscribe?

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1. IPO details:

The company through the IPO will look to mobilize Rs. 1513.6 crore. Price band for the issue is pegged between Rs. 695-720 per share

IPO offer period: July 27- July 29

BRLM: Kotak Mahindra Capital Company, BofA Securities India and Goldman Sachs (India) Securities are the global co-ordinators and book-running lead managers to the offer.

Issue details: Fresh issuance of 1.47 crore equity shares and an offer for sale of up to 63 lakh equity shares by promoter Glenmark Pharmaceuticals.

Market lot: 20 equity shares and retail investors can apply for up to 13 lots. Up to 35% of the quota is reserved for retail investor class.

2. About the company:

2. About the company:

Glenmark Life Sciences is a leading developer and manufacturer of active pharmaceutical ingredients (APIs). The company is a fully owned subsidiary of Glenmark Pharmaceuticals. The company works with 16 of the 20 largest generic companies globally. (Source: A Year of Surprises Shakes Up Off-Patent Industry” | Informa, 2020)

The company provides APIs for cardiovascular disease (CVS), central nervous system disease (CNS), pain management and diabetes.

The company’s portfolio comprises 120 APIs and through employing innovative approach as well as operational excellence for delivering reliability as well as consistent product quality. Powered by its massive, world-class manufacturing and research capabilities, the company supplies high-quality APIs to over 540 pharma companies in multiple countries.

3. Issue objectives:

3. Issue objectives:

As per the Business Purchase Agreement (BPA), the company will use the mobilized funds for payment of outstanding purchase price to the promoter for the spin-off of the API business from the promoter into the company amounting to as much as Rs. 800 crore, financing capital expenditure requirements (Rs 152.76 crore), and for general corporate purposes.

4. Financials and Grey market premium:

4. Financials and Grey market premium:

Glenmark Life Sciences for the Fy21 period logged a net profit of Rs 351.58 crore and revenue of Rs 1,885.16 crore.

In the grey market or market for unlisted securities, shares of Glenmark Life Science are available at a premium of Rs. 110 per share, which indicate the shares of Glenmark Life Science on listing may provide good listing gains.

5. Brokerage recommendations on Glenmark Life Sciences' IPO:

5. Brokerage recommendations on Glenmark Life Sciences’ IPO:

Ashika Research has given a ‘Subscribe’ rating to the IPO issue of Glenmark IPO considering the fact that In terms of the valuations, on the higher price band, GLS demands a P/E multiple of 25.1x based on FY21 post issue fully diluted EPS. Almost all listed peers are trading in the range of 30x – 60x and industry average is at 40x. GLS is valued at discount to peers. Thus, issue appears attractive for investment, said Ashika Research. Further on the financials the brokerage said its performance has been quite impressive on all counts. Revenue and EBITDA recorded a CAGR growth of 15.8% and 17.3%, respectively through FY18- FY21, its net profit recorded a 9.6% CAGR over the same period. EBITDA margin has remained stable at ~31%.

ICICI Securities has given a ‘Subscribe’ rating to the IPO issue of Glenmark Life giving the rationale that priced at FY21 EV/EBITDA of 14.7x on upper band. GLS has a good performance execution and clean regulatory track record. The company is also a leading developer and manufacturer of select high value, non-commoditised APIs in chronic therapies and works with 16 of the 20 largest generic companies globally. The growth momentum also has a strong undercurrent of global API industry growth. We recommend SUBSCRIBE to the issue, added the brokerage research firm.

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3 Stocks To Buy With Strong Support, Says ICICI Securities

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3 Stocks To Buy With Strong Support, Says ICICI Securities

Company Buy Target Price in Rs. CMP Time frame LTP
SKF India 3300 2839.75 1 year 2832
Crompton Greaves 540 467.75 1 year 470
United Spirits 770 657.65 1 year 656.8

SKF India

SKF India

SKF India is a renowned bearing manufacturer that specializes in deep groove ball bearings and has a presence in the industrial and automotive sectors.

SKF India Results:

SKF announced strong Q1FY22 performance. Revenue for the quarter was Rs 693.5 crore (I-direct estimate: Rs 638.3 crore), up 130.2 percent year over year but down 18.2 percent quarter over quarter.

In Q1FY22, EBITDA was Rs 113.8 crore, down 23.3 percent from the previous quarter. With a tax rate of 25.2 percent, subsequent PAT in Q1FY22 stood at Rs 79.1 crore.

“SKF has been making strides towards innovation and R&D and has made significant inroads in REP. Going ahead, a recovery in auto, upcoming e-market & commencement of DFC should augur well for the company. Build-in revenue, EBIDTA, PAT CAGR of 18.6%, 22.2%, 25.2% respectively Target Price and Valuation: We value SKF at Rs 3300 i.e. 35x P/E on FY23E EP,” ICICI said in its research report.

  • CMP: Rs 2852
  • Target: Rs 3300 (16%)
  • Target Period: 12 months

SKP India: Key triggers for future price performance

SKP India: Key triggers for future price performance

  • The auto industry’s recovery should help the manufacturing sector.
  • The upcoming DFC in mid-CY22, which will push out Class K bearings, as well as metro developments in 25-26 new cities, would give the industrial industry a boost.
  • A new e-market is set to launch, with the goal of increasing reach and market share while also reducing counterfeit products.

Alternate Stock Idea:

In addition to SKF, we like NRB Bearings in our capital goods coverage. It is based on needle roller bearings, which are commonly used in automobiles. BUY with a price target of Rs 175 per share, it added.

Crompton Greaves Consumer

Crompton Greaves Consumer

Crompton Greaves Consumer (CGCEL) is one of India’s largest fast moving electrical goods (FMEG) companies, with a 78 percent revenue share in electrical consumer durables and lighting (22 percent of revenue).

With a value market share of 24 percent in the domestic fan sector, it is the market leader.

With a three-year average RoE and RoCE of 34% and 39%, respectively, and a strict working capital management, the balance sheet is robust.

Crompton Greaves Consumer Q1FY22 Results:

  • Higher other costs slowed the EBITDA margin’s recovery.
  • Revenue increased by 46% year on year to Rs 1050 crore (down 31 percent QoQ) Price increases (5-6 percent )
  • A better product mix helps to keep gross margins consistent year over year.
  • However, higher advertising costs and other costs resulted in a 215 basis point EBITDA margin reduction to 12% YoY. PAT climbed by 27% year on year to Rs 95 crore, in line with topline growth.

“CGCEL’s share price has grown by ~3x in the past five years (from ~| 157 in July 2016 to ~| 467 levels in July 2021). We maintain our BUY rating on the stock Target Price and Valuation: We value CGCEL at Rs 540 i.e. 45x P/E on FY23E EPS,” according to ICICI securities.

  • CMP: Rs 468
  • Target: Rs 540 (16%)
  • Target Period: 12 months

Crompton Greaves Consumer: Key triggers for future price performance

Crompton Greaves Consumer: Key triggers for future price performance

  • Under the government’s main plan, PMAY, 1.7 crore new dwellings will be built and 20 million water pumps will be replaced.
  • Home appliance demand is boosted by KUSUM, urbanisation, and rising ambition. In the next five years, add dealers in locations with populations of 10 to 100 thousand people.
  • Focus on premium product introductions to drive margins.
  • In FY21-23E, model sales and earnings CAGRs are 17 percent and 10%, respectively.

Alternate Stock Idea:

In addition to CGCEL, we enjoy Havells in the same area. The restoration of Lloyds revenues and increase in margins would be a trigger for Havells’ future revenue growth. BUY with a price objective of Rs 1345.

United Spirits

United Spirits

United Spirits (USL) is India’s largest alcoholic beverage firm and a part of Diageo plc, the world’s largest alcoholic beverage corporation. Johnnie Walker, Black Dog, Black & White, Vat 69, Antiquity, Signature, Royal Challenge, McDowell’s No 1, Smirnoff, and Captain Morgan are among the premium liquor brands it produces and sells.

Q1FY22 Results:

  • USL had a strong first quarter of FY22. Revenues were up 57 percent year over year, with volumes up 61 percent to 15.8 million cases.
  • In Q1FY22, EBITDA was Rs 168 crore, with margins of 10.4%. (vs. loss of Rs 78 crore in Q1FY21)
  • As a result of the extraordinary loss of Rs 36 crore, subsequent PAT was at Rs 69 crore (vs. a loss of Rs 215 crore).

“USL with its new CEO (earlier stint ~2.5 years as MD, Diageo Africa Emerging Markets) is charting a newer course for its next leg of growth (focus on building newer alliances for growth and stability of supplies, strategic review of popular brands to get finished in December, 2021). We remain positive on the long term growth prospects of the stock and maintain our BUY recommendation Target Price and Valuation: We value USL at Rs 770 i.e. 46x P/E on FY23E EPS,” ICICI said in its report.

  • CMP: Rs 655
  • Target: Rs 770 (18%)
  • Target Period: 12 months

United Spirits: Key triggers for future price performance

United Spirits: Key triggers for future price performance

  • Double-digit return ratios and substantial cash generation are expected in the future.
  • Newer distribution channels (e-commerce) and portable packaging (Hipster) are expected to engage with a younger client base.

Alternate Stock Idea

Apart from USL, we remain bullish on Radico. It has been reporting volume growth well ahead of the industry and is planning to enter the premium whisky category. It has been steadily reducing its overall net-debt from a peak of Rs 950 crore in FY21 to Rs 198 crore in FY21, and generated Rs 380 crore in CFO.

Disclaimer

Disclaimer

Stock investing is risky, and investors must exercise caution. Neither Greynium Information Technologies Pvt Ltd nor the author are liable for any losses caused as a result of decisions made based on the information provided in this article. Investors should exercise prudence while the markets have reached new highs. Please seek professional advice before investing large sums of money.



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Amazon denies any plans to accept Bitcoin as payments, but shows interest in cryptocurrency, BFSI News, ET BFSI

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NEW YORK: Amazon on Monday denied a report that the e-commerce giant planned to begin accepting Bitcoin payments by the end of this year, but acknowledged an interest in cryptocurrency.

City AM cited as unnamed insider as saying Amazon would start taking cryptocurrency, citing a recent job posting by the company for someone with digital currency and blockchain skills.

Contacted by AFP, an Amazon spokesperson said information in the story was “fabricated,” but that the company does have its eyes on the cryptocurrency sector.

“Not withstanding our interest in the space, the speculation that has ensued around our specific plans for cryptocurrencies is not true,” the spokesperson said.

“We remain focused on what this could look like for customers shopping on Amazon.”

Cryptocurrency values climbed on speculation that it might be accepted for Amazon purchases.

“We’re inspired by the innovation happening in the cryptocurrency space and are exploring what this could look like at Amazon,” the spokesperson said.

“We believe the future will be built on new technologies that enable modern, fast, and inexpensive payments, and hope to bring that future to Amazon customers as soon as possible.”

After dipping from early May to mid-July, Bitcoin briefly rose above $40,000 on Monday before losing ground. It was trading at $37,209 about 2300 GMT on Monday.

The cryptocurrency sector is known as a bit of a roller coaster ride for investors, and is being watched warily by authorities and regulators concerned about its lack of transparency.

Backlash by governments caused Facebook to scale back plans unveiled in 2019 for a global cryptocurrency called “Libra.”

The project, entrusted to an independent association, has shifted to fielding “Diem” stablecoins, a type of cryptocurrency whose value is based on select real-world currencies.

Amazon handles hundreds of billions of dollars in transactions annually, making it a huge marketplace for cryptocurrency to make a debut as legal tender.



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2 Banking Stocks To Buy With An Upside Target of 28%

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Investment

oi-Sunil Fernandes

|

Broking firm, Emkay Global is bullish on the stocks of Federal Bank and ICICI Bank, with a buy on the stock with an upside target of up to 28%. The price targets on the stocks can be achieved within the next 1-year, says the brokerage firm.

Buy Federal Bank with a price target of Rs 110

According to Emkay Global, covid stress for Federal Bank manifests in higher NPAs/restructuring in retail/SME. Overall gross non performing assets ratio rose by 10 basis points, qoq to 3.5% due to elevated slippages (Rs 6.9bn), mainly in Housing/LAP.

Fresh restructuring was higher at Rs 8.5 billion and thus the cumulative restructured pool shot up to to Rs 24bn/1.9% of loans, led by Retail (59%), SME (25%) and Gold (8%), the brokerage firm has said. According to it, the restructuring pipeline stands at Rs4bn/0.3% of loans.

“The bank has assured that it has not done restructuring to suppress NPAs and thus should see a lower relapse rate. Collection efficiency stood at 95% in Jun’21, up from 90% in Apr’21, and it should improve further in Jul’21. We are trimming FY22-24E earnings by 1-4% but expect the bank’s RoA/RoE to improve gradually to 0.9-1.1%/11-13% over FY22-24E from 0.8%/10% in FY20. Maintain Buy with a revised price target of of Rs 110 (Rs 100 earlier), rolling forward to 1x Sep’23E ABV,” Emkay Global has said.

Buy ICICI Bank with a upside target of 22%

Another banking stock that Emkay Global has set a higher price target is the stock of ICICI Bank. The firm has set a price target of Rs 825 on the stock, as against the current market price of Rs 683.

“Overall credit growth has been far better (+17% yoy) than the system as well as close peers (HDFC Bank at 14% yoy) on continued strong traction in Retail loans (up 20% yoy) and Business Banking/SME loans. Retail growth has been mainly driven by relatively resilient mortgages, and should see acceleration in the auto, cards and PL businesses as the economy opens up. The bank has gained market share in cards – 18% vs. 13% in spends and 17.4% vs. 15.8% in CIF. It now has a full digi-stack (Retail/SME/Corporate) after the launch of the corporate stack. This should help the bank capture the respective ecosystems and derive better revenue share, in our view,” the brokerage has said.

2 Banking Stocks To Buy With An Upside Target of 28%

“ICICI Bank remains our top pick in the sector. Retain Buy with a revised target price of Rs 825 (2.5x Sep’23E ABV + subs value of Rs170), given its solid growth trajectory, superior core profitability, healthy capital/provision buffers, and management credibility/stability,” the brokerage has said.

Disclaimer

The above 2 stock are taken from the brokerage report of Emkay Global Financial Services. Investing in stocks is risky and investors need to be cautious. Neither Greynium Information Technologies Pvt Ltd nor the author nor the brokerage firm, would be responsible for any losses incurred based on decisions made from the article. Investors are also advised caution as the markets are now at a record high. Please consult a professional advisor and avoid investing lumpsum amounts.

Story first published: Monday, July 26, 2021, 19:14 [IST]



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2 Stocks To Buy From Motilal Oswal For Solid Returns

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Investment

oi-Sunil Fernandes

|

Broking firm Motilal Oswal has said to buy the stocks of VMART and Can Fin Homes in its latest research report. The brokerage sees good upside on both the stocks.

Buy VMART, upside target 18%

Motilal Oswal sees an upside of at least 18% on retailer VMART with a price target of Rs 3,880.

“VMART announced the acquisition of Arvind Fashions’ Value Retail format ‘Unlimited’. The deal could potentially add about 9% incremental equity value, i.e. Rs 309 per share. We see VMART’s value and cost conscious approach as a silver lining in driving this turnaround,” the brokerage has said.

The firm also believes that VMART is strongly positioned to compete with regional and national players in the Value Retail segment, given its better performance v/s national peers. Its strong liquidity (Rs 3.5 billion cash as of Mar’21, post the INR3.8b fundraise in 4QFY21), and prudent inventory management during the COVID-19 pandemic. This acquisition will provide further impetus to earnings growth, Motilal Oswal has said.

2 Stocks To Buy From Motilal Oswal For Solid Returns

“We assign a 25x FY23E EV/EBITDA multiple to arrive at our target price of Rs 3,880 per share. Given the huge growth opportunity in the Value Fashion segment and VMART’s strong execution capability, it has the potential to sustainably garner 25-30% EBITDA/PAT growth for a prolonged period, backed by over 20% revenue growth (SSSG + new store additions). We retain our Buy recommendation,” the brokerage has said.

Buy Can Fin Homes stock

The Brokerage firm is also bullish on the stock of housing lender Can Fin Homes. The brokerage sees an upside target of at least 24% on the stock from the current levels. Can Fin Homes recently reported its quarterly numbers. The first quarter PAT was up 17% YoY to Rs 1.09 billion.

The quarter was characterized by low disbursements (due to lockdowns), high operating efficiency, and strong asset quality resulting in low credit cost.

According to Motilal Oswal the company has always exhibited a flair for cherry-picking high credit quality customers. It does this by right pricing the risk and delivering superior risk-adjusted asset quality and benign credit costs across credit cycles.

The firm also believes that it has a very strong liability franchisee which would come in handy when commercial paper borrowings have to be replaced. Can Fin Homes is poised for healthy loan growth, coupled with improving margins (hereafter). We estimate a 15% loan book CAGR over FY21-24E, with margins of 3.3% over this period. We model credit costs of 8-15bp and increase our EPS estimates by 2% for both FY22E/FY23E. Along with the ability to highly leverage its balance sheet, we expect strong RoE of 16% over the medium term. We maintain buy, with price target of Rs 660 per share (2.5x FY23E BVPS),” Motilal Oswal has said.

Disclaimer

The two stocks are picked from the brokerage report of Motilal Oswal. Investing in stocks is risky and investors need to be cautious. Neither Greynium Information Technologies Pvt Ltd nor the author, would be responsible for any losses incurred based on decisions made from the article. Investors are also advised caution as the markets are now at a record high.

Story first published: Monday, July 26, 2021, 18:15 [IST]



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6 Successful Indian Startups Funded By SoftBank Vision Fund: Ola, Paytm, Firstcry

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Paytm

After the Indian government voided the largest denomination currency notes in circulation in 2016 to combat corruption, Paytm rose to the top of the mobile money business in India. As a result of the cash constraint, many people downloaded mobile wallets like Paytm’s.

SoftBank first became aware of India’s leading digital payments firm Paytm in May 2017, when it was given the option to invest $1,400 million. Paytm has proven to be one of SoftBank’s best bets in India. The platform raised $1.5 billion to $2 billion from Softbank Vision Fund in March 2019, boosting the Noida-based company’s worth to $16-18 billion. Paytm has raised a total of $32.4 million in four rounds of investment. Their most recent funding came from an undisclosed round on February 4, 2017.

Paytm and Ant Financial Services raised $1 billion from Vision Fund. The new fund will be used to accelerate the company’s growth into rural India. They want to make online payments more prevalent in rural India.

Unacademy

Unacademy

Unacademy is a learning portal that offers free access to brief lectures in the form of videos on various disciplines as well as content for major competitive examinations. It enables students to better prepare for competitive exams while also encouraging self-learning.

Unacademy started as a YouTube channel in 2010 and was officially launched in 2015. Bangalore, India is the headquarters of the corporation.

In 2020, SoftBank’s Vision Fund awarded Unacademy a $150 million grant. The committed firm’s entire worth will rise to $1.4 billion as a result of this. In terms of the firm, this represents a threefold increase in just six months. The money will be used to launch new goods and expand the company.

Delhivery

Delhivery

Delhivery, India’s largest independent e-commerce logistics startup, has secured $277 million in its final investment round before filing for an initial public offering later this year. Delhivery, a logistics firm, raised $413 million in a fundraising round headed by Softbank Vision Fund in March 2019. Softbank committed $350 million in Delhivery later that month, valuing the company at $1.6 billion.

Delhivery Pvt. Ltd, a logistics business, has joined the coveted unicorn club after securing $413 million in funding (Rs 2,890 crore).

Over the course of 12 rounds of funding, Delhivery has raised a total of $1.3 billion. Their most recent fundraising came from a Corporate Round round on July 15, 2021.

Delhivery is backed by a total of 14 investors. The most recent investors include FedEx and Fidelity.

Delhivery has made a total of five investments. Their most recent investment was in Qikpod, which raised $9 million on November 30, 2015.

On March 3, 2021, Delhivery purchased Primaseller.

Oyo

Oyo

Oyo is one of Softbank Group Corp.’s biggest businesses, and Masayoshi Son, the investor’s billionaire founder, has financed and nurtured its rapid global expansion. While the company was recently valued at $10 billion, its business has been severely harmed as a result of the rapid spread of the virus in travel, as well as operational blunders that have strained relationships with hoteliers. In August 2015, SoftBank invested $100 million in OYO, an Indian hospitality startup.

Moody’s and Fitch, two of the world’s biggest rating agencies, have publicly assessed OYO as the first Indian startup. On the basis of the company’s excellent business strategy and resilient financial profile with significant potential upside, Fitch and Moody’s rated OYO’s senior secured loan B and B3 (stable outlook), respectively.

Firstcry

Firstcry

It was founded in 2010 with the goal of becoming the world’s largest retailer of child and mother care items. SoftBank Vision Fund purchased a 40% stake in the company for $400 million in 2018, making them the company’s largest investor. It also put a $1.1 billion value on Firstcry at the time.

SoftBank has invested another $150 million in India-based baby supply shop FirstCry, bringing the Japanese conglomerate’s total investment in the company to almost $300 million. According to the tech news website, Softbank will invest an extra $100 million in the startup in January 2021. The company currently has $418 million in the capital.

Ola

Ola

Ola Electric Mobility Pvt. Ltd, the electric vehicle subsidiary spun off from ride-hailing startup Ola, announced that it had secured $250 million from SoftBank Group Corp., it became the second-fastest company to become a unicorn. Ola Electric became a unicorn in just two and a half years, referring to companies valued at $1 billion or more. Tiger Global Management and Matrix Partners India, together with SoftBank, are substantial minority investors in Ola’s parent firm, ANI Technologies Pvt. Ltd. The company earlier raised $400 million in March.

SoftBank Vision

SoftBank Vision

SoftBank Vision has also made successful investments in Grofers, Policy Bazaar, Housing, and Inmobi. Softbank has aided a number of businesses in their efforts to enter overseas markets. Oyo, one of its India portfolio firms, has expanded to China, Europe, and the United States. Paytm has expanded into Japan and Canada, while FirstCry, a baby items retailer, has expanded into the United Arab Emirates.



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3 Best Performing & High-Rated Aggressive Hybrid Funds To Start SIP In 2021

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Canara Robeco Equity Hybrid Fund Regular Growth

Canara Robeco Equity Hybrid Fund Direct-Growth is an Aggressive Hybrid mutual fund scheme that was established in January 2013 by the fund house Canara Robeco Mutual Fund. According to Value Research, this is a medium-sized fund in its category with last-year returns of 37.74 percent and average annual returns of 15.61 percent since its debut. The financial, technology, healthcare, automobile, and construction sectors make up the majority of the fund’s equity sector allocation.

Infosys Ltd., HDFC Bank Ltd., ICICI Bank Ltd., Reliance Industries Ltd., and GOI are the fund’s top five holdings. The fund charges a 1.95 percent expense ratio, which is more than most other funds in the same category but the returns over three to ten years are higher than the category average. The fund currently has Rs 5,636 crore in assets under management (AUM) and a NAV of Rs 231.04 as of July 23, 2021. If more than 10% of the units are redeemed within a year, the fund imposes a 1% exit load. A minimum monthly contribution of Rs 1000 is set to initiate a SIP in this fund.

Quant Absolute Fund Direct Growth

Quant Absolute Fund Direct Growth

Quant Absolute Fund Direct-Growth is an Aggressive Hybrid mutual fund scheme launched by the fund house Quant Mutual Fund in January 2013. The fund has a 2.15 percent expense ratio, which is more than most other Aggressive Hybrid funds. The fund now has a 77.90 percent equity allocation and a 2.01 percent debt exposure. Quant Absolute Fund Direct-Growth returns in the previous year were 81.38 percent, according to Value Research, and it has generated 18.37 percent average annual returns since its commencement.

The equity part of the fund invests largely in the FMCG, Financial, Metals, Construction, and Healthcare industries. ITC Ltd., Indiabulls Real Estate Ltd., Godrej Agrovet Ltd., Tata Steel Ltd., and Fortis Healthcare (India) Ltd. are among the top five holdings of the fund. As of July 23, 2021, the fund’s asset under management (AUM) totaled Rs 53 crore, with a net asset value (NAV) of Rs 268.37. The fund has no exit load and requires a minimum monthly contribution of Rs 1000 to start a SIP.

Mirae Asset Hybrid Equity Fund Direct Growth

Mirae Asset Hybrid Equity Fund Direct Growth

Mirae Asset Hybrid Equity Fund Direct-Growth is an Aggressive Hybrid mutual fund scheme established by Mirae Asset Mutual Fund in 2015. This fund is a medium-sized Aggressive Hybrid fund with an expense ratio of 0.41 percent, which is lower than the expense ratios charged by most other funds in the same category. The fund now has a 74.70 percent equity allocation and an 18.01 percent debt exposure. According to Value Research, Mirae Asset Hybrid Equity Fund Direct-Growth returns over the previous year have been 38.34 percent, and it has generated 14.81 percent average annual returns since its inception.

The equity component of the fund is primarily invested in the financial, technology, energy, healthcare, and fast-moving consumer goods sectors. GOI, HDFC Bank Ltd., Infosys Ltd., ICICI Bank Ltd., and Axis Bank Ltd. are the fund’s top five holdings. The fund charges an exit load of 1% if units are redeemed within 1 year of investment. The fund’s asset under management (AUM) is Rs 5,345 crore as of July 23, 2021, with a net asset value (NAV) of Rs 22.87. To initiate a SIP, the fund requires a minimum monthly contribution of Rs 1000.

Best Aggressive Hybrid Funds In India 2021

Best Aggressive Hybrid Funds In India 2021

Here are the top-performing aggressive hybrid funds in 2021 based on ratings and past performance.

Funds 1-Year Returns 3-Year Returns 5-Year Returns Rating by Morningstar Rating by Value Research
Canara Robeco Equity Hybrid Fund Regular Growth 36.15% 15.05% 14.21% 5 Star 5 Star
Quant Absolute Fund Direct Growth 81.38% 27.36% 19.31% 5 Star 5 Star
Mirae Asset Hybrid Equity Fund Direct Growth 38.34% 16.46% 15.84% 4 Star 5 Star

Should You Invest?

Should You Invest?

In unfortunate market conditions, investors seeking modest returns may choose to invest in the above-discussed aggressive hybrid funds for at least 3-years for good post-tax returns as these funds have less risk exposure compared to pure equity funds as some part of your money invested are allocated across debt instruments such as sovereign, financial and so on. Hybrid funds use a mix of debt and equity to achieve long-term capital growth and also stable income for your short-term financial goal. Aggressive Funds are suitable for individuals with a moderate risk appetite seeking equity-like returns in the long-term can invest in aggressive hybrid funds for 3 years to 5 years.

However, investors should and should keep in mind before investing that aggressive hybrid funds can be risky as the funds have a blend of small-cap stocks and low-credit quality debt securities in the equity and debt portfolio. Talking about the expected returns, let me make you very clear that returns from aggressive hybrid funds are influenced by a fluctuation in the interest rate of our Indian economy as a result it directly makes an impact on underlying debt instruments of the funds by which you can predict your returns. However, due to their higher equity allocation, these funds may deliver above-average and risk-adjusted returns if opposed to pure debt and equity funds in the long term.

Disclaimer

Disclaimer

The views and investment tips expressed by authors or employees of Greynium Information Technologies, should not be construed as investment advise to buy or sell stocks, gold, currency or other commodities. Investors should certainly not take any trading and investment decision based only on information discussed on GoodReturns.in We are not a qualified financial advisor and any information herein is not investment advice. It is informational in nature. All readers and investors should note that neither Greynium nor the author of the articles, would be responsible for any decision taken based on these articles. Please do consult a professional advisor. Greynium Information Technologies Pvt Ltd, its subsidiaries, associates and authors do not accept culpability for losses and/or damages arising based on information in GoodReturns.in



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Flipkart sees double-digit growth on pay later transactions; crosses 42 million mark, BFSI News, ET BFSI

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Flipkart, India’s homegrown e-commerce marketplace, plans to expand its Flipkart Pay Later credit offering, targeting a 2x growth over the next six months. Currently, there are over 2.8 million customers who have adopted Flipkart Pay Later and have made more than 42 million transactions on the platform to date.

Owing to the growing reliance on digital payments, Flipkart Pay Later has seen a 70% adoption rate among customers at the time of check-out and plans to cross the 100 million transaction benchmark by the end of the year.

As digital adoption continues to increase across the country and customers seek value-driven credit options, Flipkart Pay Later has seen an increase of over 50% in the number of registered users as of July 21 in comparison to the previous year. Customers have used the offering mainly for purchases across categories of beauty and general merchandise, home and lifestyle. In fact, in categories such as lifestyle, Flipkart Pay Later has exceeded the credit card transactions, making it the top prepaid instrument used by consumers for the category.

“As a homegrown platform, enabling accessibility and affordability for customers is at the heart of all our offerings. The success of Flipkart Pay Later so far has shown the benefits that the construct is able to provide to millions of customers and made us confident of its market-readiness for a much wider adoption – both on and outside Flipkart Group’s platforms.” said Ranjith Boyanapalli, Head – Fintech and Payments Group at Flipkart.

Flipkart plans to expand the reach of its ‘Pay Later’ construct to make credit available not just on Flipkart’s platform but on other partner channels as well.



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Buy These 2 Stocks, Says This Brokerage After Good Quarterly Results

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Buy ICICI Bank stock for a 23% upside target

Broking firm, Motilal Oswal has set an upside target of Rs 835 on the stock of ICICI Bank, which is 23% higher than the current market price of Rs 675.

Motilal Oswal has a buy on the stock of top private sector banking player, ICICI Bank. The bank reported strong earnings performance, led by robust core PPOP, aided by healthy NII growth (5bp NIM expansion). Also, lower provisions (23% below our estimate) drove the earnings beat v/s our estimate. The bank is thus progressing well towards earnings normalization, Motilal Oswal has aid in its report.

According to the brokerage, fresh slippages stood elevated at Rs 72.3 billion (annualized 4% of loans), pre-dominantly from the Retail/Business Banking portfolio. However, this was partially compensated by higher recoveries and upgrades. The GNPA/NNPA ratio grew by 19bp/2bp QoQ to 5.15%/1.16%. PCR remains stable at 78.4%, the highest in the industry. Restructured loans stood controlled at 0.7% of loans (v/s 0.5% in FY21).

“ICICI Bank holds COVID-19 related provisions of Rs 64.25 billion (0.9% of loans), despite utilizing provisions of Rs 10.5 billion in 1QFY22. It guided at improved asset quality trends mainly from 2HFY22. We marginally increase our FY22E PAT estimate by 4%. We maintain our BUY rating on the stock,” Motilal Oswal has said in its report.

Reliance Industries

Reliance Industries

Broking firm, Motilal Oswal has set a price target of Rs 2,485 on the stock of Reliance industries, which is an upside of 18% from current levels. The company declared its quarterly numbers last week and accordingly EBITDA for the consolidated/standalone business rose 38%/61% YoY in 1QFY22 on a low base of last year (2% beat). On a QoQ basis, consolidated revenue/EBITDA is up -6%/1%. RJio’s EBITDA was in line (up 23% YoY), while the same for Retail grew 79% YoY (6% beat) on a low base.

“Using SoTP, we value the O2C business at 7.5x FY23E EV/EBITDA, arriving at a valuation of Rs 776 per /share for the standalone business, and assign INR68 for its E&P assets. We ascribe an equity valuation of Rs 875 share to RJio at 20x FY23E EV/EBITDA and Rs 771 per share to Reliance Retail at 34x FY23E EV/EBITDA, factoring in the recent stake sale. We reiterate our Buy rating with a target Rs 2,485 per share,” the brokerage firm has said.

Disclaimer

Disclaimer

Investing in stocks is risky and investors need to be cautious. Neither Greynium Information Technologies Pvt Ltd nor the author, would be responsible for any losses incurred based on decisions made from the article. Investors are also advised caution as the markets are now at a record high. Please consult a professional advisor and avoid investing lumpsum amounts.



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