Category: Personal Finance

Top 5 Corporate Fixed Deposits Rated ‘AAA’ By ICRA & CRISIL

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Shriram Transport Finance Fixed Deposit

CRISIL graded Shriram Transport Finance Company Fixed Deposit “FAAA/Stable” and ICRA classified it “MAA+/with Stable Outlook,” indicating deposit security and credit strength. This corporation’s fixed deposit interest rates, which are as follows, are in effect for retail deposits less than Rs 5 crore as of April 1, 2021. Note: Additional interest rates of 0.40% p.a. will be paid to senior citizens on their deposits.

Period in months Monthly % p.a. Quarterly % p.a. Half-yearly % p.a. Yearly % p.a.
12 7.01 7.06 7.12 7.25
15 7.25 7.3 7.37 7.5
24 7.25 7.3 7.37 7.5
30 7.72 7.77 7.85 8
36 7.72 7.77 7.85 8
45 7.81 7.87 7.94 8.1
48 7.81 7.87 7.94 8.1
60 7.95 8.01 8.09 8.25
Source: Shriram Transport Finance Ltd.

Muthoot Capital Ltd.

Muthoot Capital Ltd.

CRISIL has granted the firm a score of ‘CRISIL A/Stable,’ which indicates the extent of stability in terms of deposit safety and interest payout. Here are Muthoot Finance’s most current fixed deposit interest rates, which include a 0.25 percent additional interest rate for elderly citizens.

Period Monthly Income Scheme Annual Scheme Maturity Plan
1 year 7.75% 8.00% 8.00%
2 year 7.75% 8.00% 8.00%
3 year 7.75% 8.00% 8.00%
4 year 7.50% 7.75% 7.75%
5 year 7.50% 7.75% 7.75%
Source: Muthoot Capital Services Ltd.

Housing and Urban Development Corporation Ltd (HUDCO)

Housing and Urban Development Corporation Ltd (HUDCO)

The credit rating of the HUDCO public deposit plan is ‘IND tAAA/Stable’ by India Ratings and Research (IndRa), ‘CARE AAA (FD) ;Stable’ by CARE, and “MAAA (Stable)” by ICRA. In each rate slab, HUDCO fixed deposits give Senior Citizens an additional 0.25 percent interest rate. Here are HUDCO’s most recent fixed deposit rates, effective as of July 10, 2018.

Period in months Cumulative Non- Cumulative Scheme
Quarterly Half-yearly Yearly
12 7.5 7.3 7.35 7.5
24 7.5 7.3 7.35 7.5
36 7.5 7.3 7.35 7.5
48 7.25 7.05 7.1 7.25
60 7.25 7.05 7.1 7.25
Source: HUDCO

Bajaj Finserv Ltd.

Bajaj Finserv Ltd.

CRISIL’s FAAA/Stable and ICRA’s MAAA/stable ratings have been given to Bajaj Finance Fixed Deposit. Bajaj Finance is currently providing non-senior citizens interest rates as high as 6.50 percent, and senior citizens receiving an additional 0.25 percent rate benefit. Here are the most recent Bajaj Finance FD rates, which are effective as of May 12, 2021.

Tenure in Months Non senior citizens Senior Citizens
12-23 5.51% – 5.65% 5.75% – 5.90%
24-35 5.94% – 6.10% 6.17% – 6.35%
36-60 6.31% – 6.50% 6.55% – 6.75%
Source: Bajaj Finance Ltd.

PNB Housing Finance Ltd.

PNB Housing Finance Ltd.

CRISIL has granted PNB Housing’s fixed deposits the FAA+/Negative rating and CARE has assigned it the AA/Stable rating. For elderly folks, PNB Housing provides a 0.25 percent higher FD interest rate. PNB Housing Finance Ltd.’s most current fixed deposit rates, effective November 28, 2020, are listed below.

Tenure in months Cumulative Non- Cumulative Option
Monthly Quarterly Half-yearly Yearly
12 – 23 5.90% 5.74% 5.77% 5.81% 5.90%
24 – 35 6.15% 5.98% 6.01% 6.05% 6.15%
36 – 47 6.60% 6.40% 6.44% 6.49% 6.60%
48 – 59 6.60% 6.40% 6.44% 6.49% 6.60%
60 -71 6.70% 6.50% 6.53% 6.59% 6.70%
72 – 84 6.70% 6.50% 6.53% 6.59% 6.70%
120 6.70% 6.50% 6.53% 6.59% 6.70%
Source: https://www.pnbhousing.com/



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CIBIL Report: What Does “NA” or “NH” Represent In Terms of Score?

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Planning

oi-Sneha Kulkarni

|

In the loan application procedure, the CIBIL Score is quite important. The lender verifies the applicant’s CIBIL Score and Report after the applicant makes an application and gives it to the lender. If the CIBIL Score is low, the lender may opt to reject the application outright

The CIBIL Score is a three-digit numeric summary of your credit history that runs from 300 to 900. It is calculated using information from the ‘Accounts’ and ‘Enquiries’ sections of your CIBIL Report. The closer your credit score is to 900, the more likely your loan application will be granted.

CIBIL Report: What Does

What is CIBIL Score 2.0?

The CIBIL Score 2.0 is a new and improved version of the CIBIL Score that was created with current trends and changes in consumer profiles and credit data in mind. Banks are progressively transitioning to the new version, and there may be some differences between it and the previous version (i.e., the score 2.0 may be lower than the earlier version). Please keep in mind that the score on the dashboard is from a previous version. The difference in credit scores, on the other hand, has no bearing on credit decision during the loan approval process because both versions of the score may have different score eligibility cut off while processing the loan application.

For persons with a credit history of lesser than six months, the CIBIL Score 2.0 provides a risk index score range. In an earlier edition, these people were labeled as having “No History – NH.” The scale runs from one to five, with one indicating “high risk” and five indicating “low risk.”

What does it mean when Score is “NA” or “NH”?

While these Scores are not considered bad by lenders, certain lenders have credit policies that limit them from granting loans to applicants with “NA” or “NH” Scores. As a result, you may have a greater chance of getting a loan elsewhere.

A score of “NA” or “NH” isn’t necessarily a bad thing. These could signify one of the following:

  • You don’t have a credit history, in other words, you’re new to the credit system.
  • You haven’t used your credit in a recent couple of years.
  • You have no credit vulnerability because you have all add-on credit cards.

The number -1 (NH) in the CIBIL score denotes that the borrower has no credit history or track record.

On a CIBILTM credit report, a credit score of 0 (NA) implies that no credit history is available (NA). The borrower’s usable credit history is less than 6 months old, as indicated by this score.



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LenDenClub, BFSI News, ET BFSI

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Millennials are dominating as the most influential cohort as both borrowers and lenders on peer-to-peer (P2P) lending platforms according to study done by P2P lender LenDenClub.

According to the report by LenDenClub, young and tech-savvy Indians are much ahead of the previous generations when it comes to borrowing or even availing the platform for a new asset class as an investor. Millennials belonging to the age group of 21-30 years were the most active as both borrowers (56%) and lenders (54%) on its platform. This was followed by the cohort belonging to the age group of 31-40 years accounting for 37% in case of borrowers and 33% in case of lenders. India’s silicon city, Bengaluru, topped the chart in terms of people having the highest credit demand. Interestingly, the highest number of lenders too hailed from the tech city of Bengaluru. Other major lending and borrowing markets were Mumbai, Hyderabad, Pune and Chennai, showing a clear dominance of west and south.

Salaried professionals ranging from CXOs to mid-managerial level, topped the chart as investors on the platform. The report further stated INR 1.81 lakhs was the average investment amount on the platform while INR 50,000 to 1 lakh was the most preferred amount among lenders, accounting to approximately 50% of the pie in terms of value. Owing to the festival season, November (2020) and December (2020) and February (2021) were the top three months when demand for credit was the highest. Whereas, during Apr-Jun 2020, the demand for credit was the least.

Bhavin Patel, Co-founder & CEO, LenDenClub said “Covid-19 has accelerated digital penetration and uptake across every industry, and the lending sector too, has seen transformation beyond imagination. During the global health crisis, medical emergencies continued to be the top reason for borrowing. Interestingly, millennials also actively participated as investors availing P2P lending as an aspirational asset class offering lucrative returns. Thanks to e-commerce and penetration of new-age technology which has built an all-new tech empowered segment of Indians across tier-II and tier-III cities from where we witnessed fresh bouts of demand.”



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RBI, BFSI News, ET BFSI

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Mumbai: The Reserve Bank of India on Thursday said the next purchase of government securities for an aggregate amount of Rs 20,000 crore under the G-sec Acquisition Programme (G-SAP 2.0) will be conducted on July 22. On June 4, RBI Governor Shaktikanta Das had announced that the central bank will conduct the open market purchase of government securities of Rs 1.2 lakh crore under the G-SAP 2.0 in the second quarter of 2021-22 to support the market.

On July 22, the RBI will purchase four government securities of different maturities through a multi-security auction using the multiple price method.

The central bank said it reserves the right to decide on the quantum of purchase of individual securities, and purchase marginally higher/lower than the aggregate amount due to rounding-off.

The result of the auctions will be announced on the same day, it added.

The first purchase under G-SAP 2.0 aggregating to Rs 20,000 crore was conducted on July 8.

The RBI had conducted an open market purchase of government securities of Rs 1 lakh crore under the G-SAP 1.0 in the first quarter of 2021-22.



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Top 5 Banks Promising Higher Interest Rates On 1-Year Fixed Deposits In 2021

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Investment

oi-Vipul Das

|

Investors are seeking fixed-income instruments in the debt category right now since the stock market is at an all-time high. Talking about fixed-income instruments, bank fixed deposits are the safest investment alternatives in the debt category. The rationale for this is that fixed deposits offer guaranteed returns over a specified investment term, as well as tax benefits if you invest for at least 5 years. Fixed deposits, as is generally known, generate higher interest rates over time, but what if you want to receive the best rates for a short period, maybe in a year?

For both regular and senior citizen depositors having a short-term goal of 1-year, here we have compiled the top 5 banks which not only provide the best rates in the market but ensure the safety of your deposits as they fall under the insurance guidelines of DICGC.

Ujjivan Small Finance Bank

Ujjivan Small Finance Bank

For deposits less than Rs 2 Cr, Ujjivan small finance bank is the only bank that provides the highest interest rates on fixed deposits for a tenure of 1 year. With effect from 5 March 2021, the following interest rates are in force.

Tenure Regular FD Rates Senior Citizen FD Rates
7 Days to 29 Days 3.05% 3.55%
30 Days to 89 Days 4.05% 4.55%
90 Days to 179 Days 4.80% 5.30%
180 Days to 364 Days 5.20% 5.70%
1 Year to 2 Years 6.50% 7.00%
2 Years and 1 Day to 3 years 6.75% 7.25%
3 Years and 1 Day to 5 Years 6.75% 7.25%
5 Years and 1 Day to 10 Years 5.80% 6.30%
Source: Bank Website

Utkarsh Small Finance Bank

Utkarsh Small Finance Bank

Utkarsh small finance bank offers the highest interest rates on fixed deposits with a term of one year for deposits under Rs 2 crore. The following interest rates are in effect from July 1, 2021.

Tenure Regular FD Rates Senior Citizen FD Rates
7 Days to 45 Days 3.00% 3.50%
46 Days to 90 Days 3.25% 3.75%
91 Days to 180 Days 4.00% 4.50%
181 Days to 364 Days 5.75% 6.25%
365 Days to 699 Days 6.25% 6.75%
700 Days 6.75% 7.25%
701 Days to 3652 Days 6.00% 6.50%
Source: Bank Website

ESAF Small Finance Bank

ESAF Small Finance Bank

With effect from May 2, 2021, the interest rates of ESAF small finance bank fixed deposits are in force. Check the most recent rates of the bank below, for deposits of less than Rs 2 Cr.

Tenure Regular FD Rates Senior Citizen FD Rates
7 days to 14 days 4.00% 4.50%
15 days to 59 days 4.50% 5.00%
60 days to 90 days 5.25% 5.75%
91 days to 181 days 5.50% 6.00%
182 days 5.00% 5.50%
183 days to 363 days 6.00% 6.50%
364 days 5.25% 5.75%
365 days & 366 days 6.50% 7.00%
367 days to 545 days 6.25% 6.75%
546 days 5.00% 5.50%
547 days to 727 days 6.25% 6.75%
728 days 5.25% 5.75%
729 days to 909 days 6.00% 6.50%
910 days 5.25% 5.75%
911 days to 1091 days 6.00% 6.50%
1092 days 5.25% 5.75%
1093 days to 1273 days 5.75% 6.25%
1275 -1455 days 5.25% 5.75%
1275 days -1455 days 5.75% 6.25%
1456 days 5.25% 5.75%
1457 days-1637 days 5.75% 6.25%
1638 days 5.25% 5.75%
1639 days-1819 days 5.75% 6.25%
1820 days 5.25% 5.75%
1821 days to 3653 days 5.25% 5.75%
Source: Bank Website

Suryoday Small Finance Bank

Suryoday Small Finance Bank

Here are the most recent fixed deposit rates of Suryoday Small Finance Bank which are in force from June 21, 2021 for deposits less than Rs 2 Cr.

Tenure Regular FD Rates Senior Citizen FD Rates
7 days to 14 days 3.25% 3.25%
15 days to 45 days 3.25% 3.25%
46 days to 90 days 4.25% 4.25%
91 days to 6 months 4.75% 4.75%
Above 6 months to 9 months 5.25% 5.25%
Above 9 months to less than 1 Year 5.75% 5.75%
1 Year to 1 Year 6 Months 6.50% 6.75%
Above 1 Year 6 Months to 2 Years 6.50% 6.50%
Above 2 Years to 3 Years 6.25% 6.50%
Above 3 Years to less than 5 Years 6.75% 6.75%
5 Years 6.25% 6.50%
Above 5 years to 10 years 6.00% 6.00%
Source: Bank Website

Equitas Small Finance Bank

Equitas Small Finance Bank

For both regular and senior citizens, Equitas small finance bank is promising the best rates on both short-term and long-term deposits. Below are the most recent fixed deposit interest rates of the bank which are in force from 1st June 2021 for deposits less than Rs 2 Cr.

Tenure Regular FD Rates Senior Citizen FD Rates
7 – 14 days 3.50% 4.00%
15 – 29 days 3.50% 4.00%
30 – 45 days 3.50% 4.00%
46 – 62 days 4.00% 4.50%
63 – 90 days 4.00% 4.50%
91 – 120 days 4.75% 5.25%
121 – 180 days 4.75% 5.25%
181 – 210 days 5.25% 5.75%
211 – 270 days 5.25% 5.75%
271 – 364 days 5.25% 5.75%
1 year to 18 months 6.35% 6.85%
18 months 1 day to 2 years 6.25% 6.75%
2 years 1 day to 887 days 6.35% 6.85%
888 days 6.50% 7.00%
889 days to 3 years 6.35% 6.85%
3 years 1 day to 4 years 6.25% 6.75%
4 years 1 day to 5 years 6.25% 6.75%
5 years 1 day to 10 years 6.50% 7.00%
Source: Bank Website

Story first published: Friday, July 16, 2021, 16:31 [IST]



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Motilal Oswal Gives ‘Subscribe’ Rating To Tatva Chintan Pharma IPO

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Tatva Chintan is a leading manufacturer of SDA and PTC globally:

TCPCL is the largest and the only manufacturer of SDAs (40% of revenue) for Zeolites in India while it is the 2nd largest globally. In case of PTC (27%), it is the largest producer in India and one of the global leaders. The SDA and PTC products have various applications in green chemistry, which is gaining prominence considering the growing focus on green and sustainable technologies. TCPCL derives ~71% of its revenue from exports where multiple opportunities are emerging.

Robust expansion plans to capitalize on the industry growth prospects:

Robust expansion plans to capitalize on the industry growth prospects:

Indian specialty chemical market is expected to grow at 11.3% CAGR over CY19-24E (F&S report) vs 5.3% globally. Further India’s chemical export is expected to grow at 13% CAGR (CY19-24E) vs China’s 7% due to China+1 strategy being adopted by majority of the global firms. TCPCL is well placed to capture this opportunity with niche and diversified product portfolio across various industries. It further plans to focus on green chemistry by developing new-age technologies, demand for which is expected to grow at 10.5% CAGR globally, said the report.

Financials also depict healthy backing:

Financials also depict healthy backing:

“Over FY18-21, TCPCL Revenue/EBITDA/Adj. PAT grew at a CAGR of 30%/42%/62%, supported by margin expansion of 499bps to 21.9% and lower taxes due to tax holiday enjoyed by its Dahej facility. The return ratios are healthy with FY21 RoE/RoCE at 20.5%/16.8% on post diluted basis”.

Issue Size:

Issue Size:

INR 5.0 billion or Rs. 500 crore IPO consists of fresh issue of INR2.3bn and OFS of INR2.7bn (by promoters), which will reduce promoters stake to 79.2% from earlier 100%. The funds will be utilized for expansion of Dahej plant (INR14.7bn) and for upgradation of R&D facility in Vadodara (INR2.4bn).

Valuation reasonable in comparison to listed peers, hence 'Subscribe' Rating to the Tatva Chintan IPO issue:

Valuation reasonable in comparison to listed peers, hence ‘Subscribe’ Rating to the Tatva Chintan IPO issue:

“We like TCPCL due its leadership position, wide product portfolio, strong client relationship and high entry barriers. The company is expected to witness strong growth for next 2-3 years given its expansion plans. It is well placed to tap opportunity in the fast growing specialty chemical space with increasing focus on green chemistry by leveraging its strong R&D capabilities. The issue is valued at 45.9x FY21 P/E on post issue basis, which appears reasonable compared to peers (avg. P/E of 59x), as it enjoys higher earnings growth (62% CAGR vs. avg. 38% CAGR for peers over FY18-21). Hence, we recommend Subscribe”, added the report.

Disclaimer:

Disclaimer:

The brokerage inputs are mentioned in respect of the Tatva Chintan IPO. Investors should take investment on their own research and neither the company nor its employees shall be responsible for any losses incurred for any decision taken on the report above.

GoodReturns.in



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RBL Bank Alters Fixed Deposit Interest Rates: Check Current Rates Here

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Investment

oi-Vipul Das

|

RBL Bank is the only leading private sector bank presently offering higher interest rates on savings accounts, up to 6.00 percent. The bank not only offers the best savings rates but also offers attractive fixed deposit rates. Higher interest rates on fixed deposits are currently being offered by RBL Bank, IndusInd Bank, and DCB Bank among the private sector banks. In respect of fixed deposits, RBL Bank has recently revised its fixed deposit interest rates. The new FD rates of the bank stated below are in effect as of July 2, 2021 for a deposit amount of less than Rs 2 Cr.

RBL Bank Alters Fixed Deposit Interest Rates: Check Current Rates Here

RBL Bank FD Rates

RBL Bank offers both regular citizens and senior citizens fixed deposit products with periods ranging from 7 days to 20 years. FD interest rates range from 3.25 percent per year to 6.50 percent per year for deposits with a maturity period of 7 days to 20 years. RBL Bank now provides 3.25 percent on deposits maturing in 7-14 days, 3.75 percent on deposits expiring in 15-45 days, and 4.00 percent on deposits maturing in 46-90 days as a result of the adjustment. FDs maturing in 91 days to 180 days get 4.50 percent interest, while deposits maturing in 181 days to 240 days offer 5.00 percent interest. On deposits with a maturity period of 241 to 364 days, the bank is now promising an interest rate of 5.40%.

Long-term deposits with a duration of two years or less than three years would fetch a 6.10 percent interest rate. RBL Bank offers a 6.30 percent interest rate on three- to five-year FDs. The bank is now offering a 6.00 interest rate on FDs maturing in 60 months 2 days to less than 120 months and 120 months to 240 months. RBL Bank provides elderly people 0.50 percent higher interest rates than the general public. Senior citizens will now get interest rates ranging from 3.75 percent to 7.00 percent following the most recent adjustment by the bank.

Tenure Regular FD Rates Senior Citizen FD Rates
7 days to 14 days 3.25% 3.75%
15 days to 45 days 3.75% 4.25%
46 days to 90 days 4.00% 4.50%
91 days to 180 days 4.50% 5.00%
181 days to 240 days 5.00% 5.50%
241 days to 364 days 5.40% 5.90%
12 months to less than 24 months 6.10% 6.60%
24 months to less than 36 months 6.10% 6.60%
36 months to less than 60 months 6.30% 6.80%
60 months to 60 months 1 day 6.50% 7.00%
60 months 2 days to less than 120 months 6.00% 6.50%
120 months to 240 months 6.00% 6.50%
Tax Savings Fixed Deposit (60 months) 6.50% 7.00%
Source: RBL Bank

Story first published: Friday, July 16, 2021, 13:27 [IST]



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Stocks To Buy: 3 Stocks ICICI Securities Is Suggesting To Buy For Long Term Investors

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Mayur Uniquoters

Mayur Uniquoters (MUL) is a major operator in the technical textile industry, producing synthetic leather for automotive, footwear, and apparel, among other applications. Based on its research ICICI Securities has placed a “buy” call on the stock with a price target of Rs 625 with the upside of 25%.

“MUL’s share price has been a laggard in the past and has just given CAGR returns of ~5% in the last five years. This was amid a delay in setting up of new plant & high gestation period for breaking into premium auto OEMs With new capacities in place and MUL starting to supply to Mercedes Benz (South Africa), we remain positive and retain our BUY rating on the stock Target Price and Valuation: We value MUL at | 625 i.e. 22x P/E on FY23E EPS,” the research report said.

Alternate Stock Idea

Apart from MUL, the brokerage also favour JK Tyre in the auto coverage. Walking the talk when it comes to b/s deleveraging, asset sweating, and capital efficiency. It recommends a BUY rating with a target price of Rs 180.

Mayur Uniquoters

Mayur Uniquoters

Key triggers for future price-performance:

  • Increasing share of supplies of premium products to global auto OEMs
  • Resumption of healthy double-digit topline and bottom-line growth
  • Sustenance of EBITDA margin profile in upward of ~24%
  • Product profile immune to technology risk, particularly in the auto space.
Market capitalisation Rs 2,228.9 Cr
Total Debt FY21P, Rs 41.1 Cr
EV Rs 2,043.9 Cr
52 week H/L Rs 546 / 209
Equity capital Rs 22.3 Cr
Face value Rs 5

Infosys

Infosys

Infosys Ltd (Infy) is a leading IT company that serves the BFSI, retail, communication, manufacturing, and high-tech industries. Digital technology accounts for more than half of the company’s income.

“Infy’s share price has grown by ~3x over the past five years (from Rs 586 in July 2016 to Rs 1,577 levels in July 2021). We remain further positive and retain our BUY rating on the stock Target”, the ICICI Securities report said.

Based on its research ICICI Securities has placed a “buy” call on the stock with a price target of RS 1,825 i.e. 28x P/E on FY23E EPS.

Alternative Stock Idea

In addition to Infy, we favor TCS in our IT coverage. We rate the company BUY with a target price of Rs 3,800 based on strong organic growth, solid financials, industry-leading margins, and a healthy capital allocation philosophy, it added.

Infosys

Infosys

Key triggers for future price-performance:

  • Infy is a key beneficiary of multi-year growth (15-20%) in digital technologies
  • Increase in outsourcing in Europe, vendor consolidation, and large deal pipeline other key growth drivers
  • Infy to post-industry leading growth in revenues (CAGR of 16% in FY21-23E)
  • Healthy cash generation, robust dividend distribution & buyback.
Market Cap Rs 6,72,585.8 Cr
CC&E Rs 27,056.0 Cr
52 week H/L Rs 1591 / 781
Equity capital 2,124.0
Face value Rs 5
EV Rs 6,45,529.8Cr

Mindtree

Mindtree

Mindtree is a mid-tier IT company with operations in the United States, Europe, and the rest of the world, focusing on BFSI, Communication Media & Technology, Retail, and Travel.

“Mindtree share price has grown by ~4x over the past five years (from Rs 650 in Jul 2016 to Rs 2622 levels in July 2021. We upgrade the stock from HOLD to BUY with Target Price and Valuation at Rs 3065 i.e. 32x P/E on FY23E, the research report stated.

Alternative Stock Idea

In addition to Mindtree, we like LTI in our IT coverage. The ability of Larsen & Toubro Infotech (LTI) to deliver end-to-end solutions is projected to aid in the company’s industry-leading growth. We recommend BUY with a target price of Rs 4,580, it added.

Mindtree

Mindtree

Key triggers for future price-performance:

  • Key beneficiary of robust growth in cloud, data, and experience
  • Traction in multi-year deals client mining, scaling up existing clients to US$50 million
  • ell poised to clock industry-leading double-digit growth
  • Well-poised to maintain 20% plus margins
Market Cap Rs 43,183.4 Cr
Cash and Investment Rs 1,281.4Cr
EV Rs 41,902 Cr
52 week H/L 2637/ 936
Equity capital 164.7
Face value Rs 10

Disclaimer

Disclaimer

Views mentioned herein are taken from the brokerage report of ICICI Securities. Neither the author, nor the brokerage nor Greynium Information Technologies would be responsible for losses incurred based on the article. Please consult a professional advisor. Investing in stock markets is risky.



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3 SIPs To Invest Where Equity Mutual Funds Are Rated “5-STAR” By CRISIL

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Axis Small Cap Fund

This fund has been rated as 5-star by CRISIL and Value Research and a 4-star rating from Morningstar. We recommend that investors invest in this fund only if there are willing to take risk. Please be informed that the Nifty is at a record and is near 16,000 points, which means the markets are not expensive, they are very expensive.

So, if you invest in small cap stocks and if the markets fall, these set of stocks are likely to fall faster.

In any case, you can consider an SIP in the fund with a small sum of Rs 500 every month, which is the right way to go, to hedge your risks. The 1-year returns from the fund has been a whopping 95%, while the 3-year returns has been 28.8% and 5-year returns has been 22.97%.

The markets have rallied greatly, which is why the returns are phenomenal in the last 1-year. Axis Smallcap Fund has investments in stocks like Galaxy Surfacants, Tata Elxi, JK Lakshmi Cement, CCL Products etc. As can be seen the exposure is largely into the small cap stocks.

Invesco India Midcap

Invesco India Midcap

Invesco India Midcap has been rated “5-star” by CRISIL. Midcap stocks are high beta stocks, where the returns could be higher than the indices when the markets rally and significantly lower than the indices, should the markets fall. Therefore, caution is advised and only those investors willing to take the risk should invest.

Invesco India Midcap Fund has given a returns of 70% in the last 1-year, while the 3-year returns are 19.55% and 5-year returns are 17.63% on an annualized basis. While the returns are stupendous in the last 1-year, readers must realize that this has largely to do with the markets which have rallied to historic highs. The expense ratio of the fund is a little higher at 2.16% as compared to some other players. Almost 97.3% of the funds are invested in stocks and the balance in cash and cash equivalents.

Edelweiss Large And Midcap Fund

Edelweiss Large And Midcap Fund

The fund invests in a diversified portfolio of Large Cap and Mid Cap equity and equity related securities. The fund like peers has given good returns of almost 66% in the last 1-year. Like Invesco India Midcap, the Edelweiss Large And Midcap Fund has also been rated 5-star by Crisil, though this fund also invests in largecap stocks. The one advantage of the fund like this is that since they also invest in largecap the risks are slightly lesser, though risk of investing in equities always remains. Value Research has accorded the fund a 4-star rating.

The problem with recommending mutual fund schemes is that no single mutual fund scheme can have a 5-star rating for a long period. Therefore, a mutual fund scheme that looks good today, may not be so tomorrow. Edelweiss Large And Midcap Fund has investment in stocks like Infosys, ICICI Bank, HDFC Bank, State Bank of India and Reliance Industries. The fund’s top 5 holdings are more skewed towards the financial sector, which means economic growth remains the key.

Disclaimer

Disclaimer

Mutual Funds, especially equity schemes are risky and investors are advised caution. Neither the author, nor Greynium Information Technologies Pvt Ltd, would be responsible if investment is made and losses incurred, based on reading the above article. Please consult a professional advisor and remember that markets are at a record high.



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Stocks Given A ‘Buy’ For Up To 47% Upside By Reputed Brokerage Firms

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1. Indo Count Industries

Edelweiss Financial Services in its report dated July 15 has given a buy recommendation for Indo Count Industries for a target price of Rs. 293, an upside of 47% from the current price levels of Rs. 199.35 per share.

Rebate of State and Central Taxes and Levies to provide boost to Indian textile exports

The small cap textile company commands a market cap of Rs. 2,786 crore. The brokerage in its report specified on the rebate to the Indian textiles exporters’ called Rebate of State and Central Taxes and Levies (RoSCTL) scheme on exports of Apparels, Garments and Made-Ups till 31st Mar’24. With this clarity there is expected that Indian textiles will get a boost and also enable the industry to become competitive in the US.

“This event is a big positive for ICIL, and thus, we maintain ‘BUY’ rating on the stock with an increased target price of INR293/share (previous TP: INR257/share)”, said the brokerage.

Several other tailwinds a big positive for ICIL

Export incentives with RoSCTL is a big positive for ICIL. The brokerage further adds ‘With the issue of export incentives out of the way, the textiles industry is now lobbying for FTA to go through with Europe, which will open a whole new market for India and allow it to compete with Pakistan and Bangladesh (which face nil tariffs in Europe). This along with factors like (a) retail recovery in the US, (b) China + 1 strategy playing out, (c) increasing share of branded/fashion bedding, and (d) capacity expansion to meet the strong demand will enable ICIL to further unlock its potential’

“We are optimistic about ICIL’s growth prospects and expect it to deliver revenue/EBITDA/PAT CAGR of 13%/19%/20% over FY21-23E. At CMP, ICIL is trading at an attractive valuation of 11x/10x on FY22E/FY23E earnings estimates. With removal of a key headwind (uncertainty over export incentive rates), upward revision of US retail sales estimates for CY21 and continued increase in India’s home textiles market share in the US”, we reiterate ‘BUY’ recommendation on ICIL with an increased target price of INR293/share (previous TP: INR257/share).

2. Mayur Uniquoters:

2. Mayur Uniquoters:

ICICI Securities has suggested to ‘Buy’ Mayur for an upside of 26% for a target of Rs. 625 from the current price of Rs. 496.65 per share.

The company is the largest manufacturer of artificial leather and has begun its PU coating facility with a current capacity of 6 lacs linerar meter per month.

Healthy RoCE and debt free cash rich Balance sheet

Mayur Uniquoters (MUL) is a leading player in the technical textile domain, manufacturing synthetic leather for automotive, footwear & apparels, etc. MUL has, over the years, exhibited healthy capital efficiency with five year RoCE at ~21% amid healthy EBITDA margin profile at ~20%+. It has debt free cash rich b/s with surplus cash of ~| 200 crore (FY21).

FY21 results

-Net sales decline was limited to 3% YoY to Rs. 513 crore

– EBITDA in FY21 was at Rs. 125 crore, up 20% YoY with margins at 24.4%

– Consequent PAT was at | 90 crore (up 12.5% YoY)

MUL supplying to Mercedes Benz seen to be a big positive

MUL’s share price has been a laggard in the past and has just given CAGR returns of ~5% in the last five years. This was amid a delay in setting up of new plant & high gestation period for breaking into premium auto OEMs. With new capacities in place and MUL starting to supply to Mercedes Benz (South Africa), we remain positive and retain our BUY rating on the stock Target Price and Valuation: We value MUL at Rs. 625 i.e. 22x P/E on FY23E EPS.

GoodReturns.in

Disclaimer:

Disclaimer:

Stock market investment is subject to risk associated with the stock markets and hence investors need to be very careful. Neither the author, nor the brokerage, nor Greynium Information Technologies Pvt Ltd would be responsible for losses incurred based on a decision to buy into the stocks based on the above article. TStock indices are currently at lifetime highs and hence investors needs to be cautious.



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