MUMBAI: The Reserve Bank on Monday issued a scheme ‘RBIRetail Direct‘, a one-stop solution to facilitate investment in government securities by individual investors.
No fee will be charged for opening and maintaining ‘Retail Direct Gilt account‘ with the RBI. However, fee for payment gateway, as applicable, will be borne by the registered investor.
As part of continuing efforts to increase retail participation in government securities, ‘the RBI Retail Direct’ facility was announced in February 2021 for improving ease of access by retail investors through online access to the government securities market – both primary and secondary – along with the facility to open their gilt securities account (‘Retail Direct’) with the RBI.
“Retail investors (individuals) will have the facility to open and maintain the ‘Retail Direct Gilt Account’ (RDG Account) with RBI,” the central bank said and added the account can be opened through an ‘Online portal’ provided for the purpose of the scheme.
The ‘online portal’ will also give the registered users the facility to access to primary issuance of government securities, as well as access to NDS-OM. NDS-OM means RBI’s screen-based, anonymous electronic order matching system for trading in government securities in the secondary market.
The date of commencement of the scheme will be announced at a later date, the RBI said.
“The scheme of Reserve Bank of India (RBI) Retail Direct has been formulated as a one-stop solution to facilitate investment in government securities by individual investors,” it said.
Retail investors can register under the scheme and maintain an RDG account if they have a rupee savings bank account maintained in India; Permanent Account Number (PAN), any ‘Officially Valid Document’ for KYC purpose; valid email id; and registered mobile number.
Non-Resident retail investors eligible to invest in government securities under Foreign Exchange Management Act, 1999 are also eligible under the scheme.
The RDG account can be opened singly or jointly with another retail investor who meets the eligibility criteria, the RBI said.
Government securities, for the purpose of the scheme, mean securities issued in form of stock by credit to SGL/CSGL account maintained with RBI. These include Government of India Treasury Bills; Government of India dated securities; Sovereign Gold Bonds (SGB); and State Development Loans (SDLs).
On investors services, the RBI said registered investors can use the online portal for account statement, nomination facility, pledge/lien, gift transactions, and grievance redressal.
It seems like a slew of negative stories have led to crypto currencies in a slump. According to a report by CNBC, the trading values at some of the largest exchanges have dropped 40% in June. The report cites data from CryptoCompare, a crypto market data provider, that suggests trading volumes at Binance, Kraken, Coinbase and Bitstamp have reduced due to lower prices and lower volatility.
The report says that the price of Bitcoin was down by 6% and hit a monthly low of $28,908.
As per a report by Reuters, China has been making an attempt to crackdown on the crypto industry. And it seems like it has finally made an impact. The fear of a Chinese crackdown may have led to fear in the market, which is why it has gone in a slump like situation.
China is gearing up to launch its own state-backed digital currency. This has led to mining operations in the country to close down. Almost 50% of bitcoin’s mining power was hosted by these operators in China.
The Chinese government had announced tougher restrictions on cryptocurrency in May. A report by Nikkei says that mining is an energy-intensive process which is not in tune with China’s pledge to achieve carbon neutrality by 2060.
The Chinese crackdown on bitcoin as well as crypto mining has forced many using high-powered computers to secure the bitcoin network and validate transactions out of the country to other locations like Kazakhstan among others. Bitcoin’s hash rate — a measure to check how much computing power is being used by bitcoin network — has fallen down to a 13-month low over the last few weeks, according to a report by Forbes.
It’s not just the bitcoin network which has seen a crash. The ethereum — other most popular crypto network — has seen its hash rate drop by 20% in the last two months.
When the coronavirus jammed up China’s economy last year, Rao Yong needed cash to tide over his online handicrafts business. But he dreaded the idea of spending long, dull hours at the bank.
The outbreak had snarled delivery services and made customers slow on their payments, so Rao, 33, used an app called Alipay to receive early payment on his invoices. Because his Alipay account was already tied to his digital storefront on Alibaba’s Taobao bazaar, getting the money was quick and painless.
Alipay had helped Rao a few years before as well, when his business was just starting to expand and he needed $50,000 to set up a supply chain.
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“If I’d gone to a bank at that point, they would have ignored me,” he said.
China was a trailblazer in figuring out novel ways of getting money to underserved people like Rao. Tech companies like Alipay’s owner, an Alibaba spinoff called Ant Group, turned finance into a kind of digital plumbing: something embedded so thoroughly and invisibly in people’s lives that they barely thought about it. And they did so at colossal scale, turning tech giants into influential lenders and money managers in a country where smartphones became ubiquitous before credit cards.
But for much of the past year, Beijing has been putting up new regulatory walls around so-called fintech, or financial technology, as part of a widening effort to rein in the country’s internet industry.
The campaign has ensnared Alibaba, which was fined $2.8 billion in April for monopolistic behavior. It has tripped up Didi, the ride-hailing giant, which was hit with an official inquiry into its data security practices just days after listing its shares on Wall Street last month.
This time last year, Ant was also preparing to hold the world’s biggest initial public offering. The IPO never happened, and today Ant is overhauling its business so regulators can treat it more like what they believe it is: a financial institution, not a tech company.
In China, “the reason fintech grew that much is because of the lack of regulation,” said Zhiguo He, who studies Chinese finance at the University of Chicago. “That’s just so clear.”
Now the question is: What will regulation do to an industry that has thrived precisely because it offered services that China’s state-dominated banking system could not?
With Ant and other big platforms cornering the market, investment in Chinese fintech has fallen in recent years. So Ant’s chastening could make the sector more competitive for startups. But if running a big fintech company means being regulated like a bank, will the founders of future Ants even bother?
Zhiguo He said he was mostly confident that Chinese fintech entrepreneurs would keep trying. “Whether it’s hugely profitable,” he said, is another question.
For much of the past decade, if you wanted to see where smartphone technology was making China look most different from the rest of the world, you would have peered into people’s wallets. Or rather, the apps that had replaced them.
Rich and poor alike used Alipay and Tencent’s WeChat messaging app to buy snacks from street vendors, pay bills and zap money to their friends. State media hailed Alipay as one of China’s four great modern inventions, putting it and bicycle sharing, e-commerce and high-speed rail up there with the compass, gunpowder, papermaking and printing.
But the tech companies didn’t enter the finance business to make it easier to pay for coffee. They wanted to be where the real money was: extending credit and loans, managing investments, offering insurance. And with all their data on people’s spending, they believed they would be much better than old-fashioned banks at handling the risks.
With the blessing of China’s leaders, finance arms began sprouting out of internet companies of all kinds, including the search engine Baidu, the retailer JD.com and the food-delivery giant Meituan. Between 2014 and 2019, consumer credit from online lenders nearly quadrupled each year on average, by one estimate. Nearly three-quarters of such platforms’ users were under age 35, according to iiMedia Research.
Last year, when Ant filed to go public, the company said more than $260 billion in credit was being extended to consumers on Alipay. That meant Ant alone was responsible for more than 12% of all short-term consumer lending in China, according to the research firm GaveKal Dragonomics.
Then in November, officials torpedoed Ant’s IPO and got to work taking apart the plumbing that had connected Alipay with China’s banks.
They ordered Ant to make it less convenient for users to pay for purchases on credit — credit that was being largely funded by banks. They barred banks from offering deposits through online platforms and restricted how much banks could lend through them. At some banks, deposits offered through digital platforms accounted for 70% of their total deposits, a central bank official said in a speech.
In a news briefing last week, Fan Yifei, deputy governor at the central bank, said regulators would soon be applying the full Ant treatment to other platforms.
“On the one hand, the speed of development has been astonishing,” Fan said. “On the other hand, in the pursuit of growth, there have arisen monopolies, disorderly expansion of capital and other such behaviors.”
Ant declined to comment.
As Ant and Tencent scramble to meet regulators’ demands, they have pared credit services for some users.
One big hit to Ant’s bottom line could come from new requirements that it put up more of its own money for loans. Chinese regulators have for years disliked the idea of Alipay’s competing against banks. So Ant instead played up its role as a partner to banks, using its technology to find and assess borrowers while banks staked the funds.
Now, though, that model looks to Beijing like a handy way for Ant to place bets without being exposed to the downside risks.
“If problems arise, it would be safe, but its partner banks would take a hit,” said Xiaoxi Zhang, an analyst in Beijing with GaveKal Dragonomics.
When Chinese regulators think about such risks, it is people like Zhou Weiquan they have in mind.
Zhou, 21, makes about $600 a month at his desk job and wears his hair in a swooping, reddish-brown mullet. After he turned 18, Alipay and other apps began offering him thousands of dollars a month in credit. He took full advantage, traveling, buying gadgets and generally not thinking about how much he spent.
After Alipay slashed his credit limit in April, his first reaction was to call customer service in a panic. But he says he has since learned how to live within his means.
“For young people who really love spending to excess, this is a good thing,” Zhou said of the clampdown.
China’s brisk recent economic growth has most likely made officials more comfortable with reining in fintech, even at the expense of some innovation and consumer spending and borrowing.
“When you consider that household debt as share of household income is among the highest in the world right now” in China, “then more household debt is probably not a good idea,” said Michael Pettis, a finance professor at Peking University.
Qu Chaoqun, 52, was thrilled a few years ago to find he had access to $30,000 a month across several apps. But he wanted even more. He started buying lottery tickets.
Soon enough, Qu, a takeout-delivery driver in the megacity of Guangzhou, was borrowing on one app to pay his bills on another.
When his credit was cut by almost half in April, he fell into what he calls a “bottomless abyss” as he struggled to pay his outstanding debts.
“People inevitably have psychological fluctuations and impulses that can bring great harm and instability to themselves, to their families and even to society,” Qu said.
Piramal Capital & Housing Finance Limited is a fully-owned subsidiary of Piramal Enterprises Limited. The company extends home loans, real estate and corporate financial services to individual and Corporate property seekers etc.
In respect of the real estate financing the company extends Loan against property, housing finance, digital purchase finance as well as online personal loans.
Issue objective:
The funds mopped up via the issue shall be put towards onward lending, financing, and for repayment /prepayment of interest and principal of existing borrowings (at least 75%). Also the funds will be utilized towards other general corporate purposes.
NCD credit rating:
CARE has accorded the secured NCD of Piramal a rating of CARE AA(CWD) (Under Credit Watch with Developing Implications) and ICRA (AA) with outlook (negative) by ICRA Ltd. This rating is lower than the highest rating of ‘AAA’. Also , the negative outlook suggests that there can still be a further downgrade for the issue.
Financials: The company commanded a loan book of Rs. 32,254 crore as well as net NPAs of 1.9% as of March 31, 2021. Real estate lending forms 3/4th of the company’s total loan book while non-real estate and retail lending the rest. The company’s current CAR is well above the regulatory requirements at 32.3 percent.
Coupon rate and payment frequency
Option
Tenure
Interest
Coupon
I
26 Month
Annual
8.35%
II
26 Month
Cumulative
N/A
III
36 Month
Annual
8.50%
IV
60 Month
Annual
8.75%
V
120 Month
Annual
9.00%
How to apply for Piramal NCD?
Both through the online and offline route one can apply for Piramal NCD. You can do so this through your demat account. Also if you want you can download the form from the company’s website and fill up the required details and pay via cheque and submit it at the nearest collection centre.
Taxation:
Any interest received on these NCDs shall be taxed as per your tax slab. Further, NCDs bought in the issue and held till maturity (both at face value) will not have any capital gains and therefore no tax. In case the NCDs are redeemed after a holding period of one year then LTCGT at the rate of 10%without indexation plus cess of 4 per cent will apply.
Conclusion:
The NCDs are secured meaning the company in case of any financial exigency will first pay the investors by liquidating its assets, nonetheless the recent takeover of DHFL may impact the company’s loan book as well as its capital adequacy ratio. All the more in a rising interest regime, it is always best to book in such NCDs for a short term. Also do note that the ratings of these NCDs may see a revision in rating with the change in financials of the company. So, conservative investors who cannot afford risk element in their investment need not pick this product for higher return. Also, the rating suggests that this NCD issue is not for the risk averse investor class.
Canara Robeco Bluechip Equity Fund has been accorded a 5-star rating by Morningstar, CRISIL and Value Research. This largecap equity fund has been a consistent performer over the last few years, and with parameters for analysis that are available, the scheme looks on a solid footing going ahead.
Canara Robeco Bluechip Equity Fund is a largecap fund. As sum of Rs 10,000 invested in Canara Robeco Bluechip Equity Fund every month for the last three years would have translated into a corpus Rs 5.15 lakhs today, if you had gone by an SIP.
This means that Rs 3.6 lakhs invested through SIPs has now generated Rs 5.15 lakhs, which is not bad at all. The 3-year returns from the fund has been 16.82 per cent on an annualized basis, while the 5-year returns has been 16.21%.
Should you invest in the Canara Robeco Bluechip Equity Fund?
The portfolio of the fund comprises names like HDFC Bank, Infosys, ICICI Bank, Reliance Industries and TCS. If you study the portfolio of some other mutual fund schemes, you see that it is heavily skewed towards financials, which means, should the economy falter, there could be problem for banking stocks. At least the top 5 stocks of Canara Robeco Bluechip Equity Fund look a little more balanced with exposure to IT and a diversified play like Reliance Industries.
The fund presently has about 93.95% invested in equities, while the balance is invested in largecap shares. We suggest that since the Sensex has gone up to a record 53,000 points, investors should invest only through SIPs and not chase over exuberance of the markets. This means avoid investing lumpsum in equity mutual funds.
Mirae Asset Emerging Bluechip Fund
This fund again has been rated as 5-star by all the 3 big rating and analysis firms including Morningstar, CRISIL and Value Research. Again, the portfolio is strong and the returns have been solid. This unlike Canara Robeco Bluechip Equity Fund is a much larger fund with assets under management of more than Rs 18,000 crores.
The top-holdings are in larger banks, which means it is more skewed towards financials in its top 5 holdings, while Canara Robeco Bluechip Equity Fund was more diversified in that sense. The 3-year returns of the fund is 22.16%, which is higher or almost the highest among large cap equity mutual funds in the country. Even the 5-year returns on an an annualized basis at near 21% is solid.
Should you invest in Mirae Asset Emerging Bluechip Fund?
Again, if you ask us whether it is worth investing in the scheme, we would say “yes”, but only through the SIP route. Markets have run up too fast over the last 1-year and not many are convinced that valuations are fair. An SIP for the Mirae Asset Emerging Bluechip Fund does not cost much and one can do with a sum of Rs 1,000 each month. Go for the scheme which has a good track record, but, only through the SIP route.
Disclaimer
Investing in equity mutual funds is risky, so investors need to be cautious. Neither Greynium Information technologies nor the author would be responsible for any losses incurred due to a decision based on the above articles Please consult a professional advisor and remember the markets have run-up sharply.
LONDON: Trading volumes at major cryptocurrency exchanges fell by more than 40 per cent in June, research showed on Monday, with a regulatory crackdown in China and lower volatility among the factors depressing activity.
Spot trading volumes fell 42.7 per cent to $2.7 trillion, with derivative volumes down 40.7 per cent to $3.2 trillion, London-based researcher CryptoCompare’s data showed.
“Headwinds continued as China persisted with its crackdown on bitcoin mining,” CryptoCompare said. “As a result of both lower prices and volatility, spot volumes decreased.”
Bitcoin, the largest cryptocurrency, fell more than 6 per cent last month, touching its lowest since January, as authorities in China tightened restrictions launched a month earlier on bitcoin trading and mining.
It had tumbled 35 per cent in May, with its losses sparked by Beijing’s moves to rein in the fast-growing sector. Crypto trading volumes tend to spike during periods of extreme price swings.
Major cryptocurrency exchange Binance, which has faced scrutiny from regulators across the world, retained its position as biggest platform by spot trading volume, CryptoCompare said. Still, volumes at Binance fell 56 per cent in June to $668 billion.
This fund according to research agency Morningstar has given a returns of 23.40% since the start of the year, making it the best mutual fund in terms of returns since Jan 1, 2021. This is only for mutual funds in the largecap category. Franklin India Bluechip Fund tends to invest in a range of companies, with a bias towards large cap companies. The longer term returns from the fund are 13.44% on an annualized basis for 3-years and 11.12% on an annualized basis for 5-years.
It’s important to understand that we are just providing information on best returns since Jan 1, 2021 and are not recommending any of these funds. An SIP can be started under Franklin India Bluechip Fund with a small sum of Rs 1,000 every month.
Tata Large Cap Fund
According to research from Morningstar this is the fund that has taken the second position from among largecap stock schemes for highest returns since the start of the year. It has given a year to date returns of 20.87%. This fund tends to invest in largecap bluechip companies. Again, we are just providing information and not suggesting to invest by any chance.
Interestingly, an SIP is also possible in the fund with a sum of just Rs 150 per month. The Tata Large Cap Fund is not a very big fund in the sense the assets under management is less than Rs 1,000 crores. The 3-year returns are 12.6%, while the 5-year returns are 11.91%. Tata Large Cap Fund has invested in stocks like ICICI Bank, HDFC Bank etc.
Mahindra Manulife Large Cap Pragati Yojana
With returns of 19.38% since Jan 1, 2021, this fund has been ranked No 3 in ratings for year to date returns by Morningstar in the largecap category. This fund is a new fund launched only in 2019 and hence it is not possible to analyze the long term returns etc. The fund is very small and has assets under management of only Rs 123 crores. It has holdings in stocks like Infosys, ICICI Bank and Relaince Industries.
An SIP is possible in the fund with a sum of Rs 1,000 every month.
Nippon India Large Cap Fund
Again, like peers mentioned above this is a largecap fund which invests in the biggest listed companies in the business. The fund is ranked fourth in terms of year to date returns of 18.86%.
Interestingly, one can start an investment with a small sum of Rs 100 and the minimum investment required is also Rs 100. The 3-year returns is almost 13.5% on an annualized basis, which is in line with how the markets have also performed over the years. However, the fund has only been accorded a 2-star rating from Value Research. We wish to emphasize the fact that the Sensex at near 53,000 points is at a new record and any large scale exposure to largecap equity mutual funds could erode wealth should the markets fall dramatically from these levels. It’s hence more prudent to invest, if you want to through the SIP mode.
IDBI India Top 100 Equity Fund
This is another largecap fund with year to date returns of 18.21%. The fund is a large cap fund with exposure to stocks like Reliance Industries, HDFC Bank, Infosys and ICICI Bank. We do not suggest investing in any of the funds mentioned above as the markets have gone up sharply. As such you can consider SIPs which is a better option against wild market fluctuations.
Disclaimer
Investing in equity mutual funds is risky, so investors need to be cautious. Neither Greynium Information technologies nor the author would be responsible for any losses incurred due to a decision based on the above articles Please consult a professional advisor and remember the markets have run-up sharply.
According to Geojit, the company in FY21 ended reported total income of Rs 3626 crore-growth of 54 per cent over FY20. The net profit increased to Rs 1245 crore in FY21 as compared to Rs 183 crore of FY 20. “Despite tough competition in the broking industry, MOSL could increase its active clients and market share. The revenue market share in the broking industry increased to 2.7 per cent as compared to 2.4 per cent of FY20,” the brokerage has said.
Company could do well in the June quarter
According to Geojit, the broking industry would see consolidation due to higher compliance costs and falling brokerage rates, helping established players like MOSL to gain market share. “The buoyant market condition does suggest that the company should do well in the first quarter of June 2021 too,” the brokerage says.
Wealth business to benefit topline
Geojit believes the company is focussing on the wealth business, which believe should help the company to expand top line as well as the bottom line.
Housing finance boost
“The housing finance business was struggling a few years back, but now it’s gaining strength. It reported the highest NIM. The management has guided that they will be able to maintain a lower cost of borrowings,” Geojit has said in its report.
Insurance distribution to aid profits
According to the broking firm, the company has entered insurance distribution business which should help the company to report higher profit growth.
Healthy promoters stake
The promoters stake stands at a healthy 70.66 per cent while both FIIs, as well as DIIs, have increased stake in the company for March 2021 quarter as compared to December 2020 quarter. Geojit has noted.
Stock market is booming
According to the brokerage house, MOSL is a good proxy to ride a boom in the stock market as most of its businesses are dependent on the good sentiments of the market
Solid promoters
The company is managed by two renowned personalities-Motilal Oswal and Raamdeo Agrawal, Geojit has noted.
Healthy ROE and Technical indicators bullish
Geojit has said that the company enjoys healthy ROE of 38 per cent and technical indicators are suggesting the bullish trend.
Disclaimer
Views mentioned herein are taken from the brokerage report of Geojit. 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.
When it comes to covering financial emergencies or fulfilling any short-term personal finance goal instantly, availing of a gold loan can be a good move. Gold loans are also called secured loans implying that you can apply for a loan from any bank or Non-Banking Financial Companies (NBFC) by pledging your gold articles as collateral or security which should be between 18-24 carats. To approve the loan application, the concerned lender would first check the quality and carat of the pledged gold after which the loan amount will be sanctioned depending on the market price of gold which is calculated according to the prevailing price.
Generally, lenders will give a gold loan for up to 75% of the market price of the pledged gold article. So if you have a short-term personal finance goal and want to take a gold loan with the cheapest rates, then here are the top 5 public sector banks, private sector banks, and NBFCs that are currently offering the lowest or best affordable interest rates on gold loans.
Top 5 Public Sector Banks With The Cheapest Interest Rates On Gold Loans
Among the commercial banks, Punjab & Sind Bank followed by Bank of India and Canara Bank are currently promising the cheapest rates on gold loans. Here are the top 5 government banks which are currently promising the lowest interest rates on gold loans depending on the loan amount.
Banks
Rate of interest in%
Punjab & Sind Bank
7.00 to 7.50
Bank of India
7.30 to 8.95
Canara Bank
7.35
State Bank of India
7.5
Andhra Bank
7.60 onwards
Source: Bank Websites
Top 5 Private Sector Banks With The Cheapest Interest Rates On Gold Loans
Among the leading private sector banks of India, HDFC Bank followed by Dhanlaxmi Bank are currently offering the best interest rates on gold loans. Here are the top 5 private sector banks of India that are providing the cheapest interest rates on gold loans:
Banks
Rate of interest in%
HDFC Bank
8.95 to 17.20
Federal Bank
8.50 onwards
Karur Vysya Bank
8.60 to 9.60
ICICI Bank
9.00 to 19.76
Dhanlaxmi Bank
9.65
Source: Bank Websites
Top 5 NBFCs Offering The Cheapest Interest Rates On Gold Loans
Here are the top 5 non-banking financial companies that are currently promising the cheapest interest rates on gold loans depending on the minimum to the maximum loan amount.
NBFCS
Rate of interest in%
IIFL Finance
9.24 to 24
Shriram Transport Finance Company Limited
11.5 onwards
Muthoot Finance
11.99
Bajaj Finance Ltd.
11.99 onwards
Manappuram Finance Ltd.
12.00 onwards
Source: Official Websites
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Story first published: Monday, July 12, 2021, 19:42 [IST]
One of the top stock picks from the auto space is Tata Motors as Emkay Global believes that the Automobile sector is underpinned by expectations of a strong cyclical upturn which is expected to last at least three years. The brokerage now has a target of Rs 400 on the stock of the auto giant, which is almost a 32% upside from the current levels.
“Tata Motors is likely to see a muted quarter, with revenue growth at +2% CAGR on forex translation gains and higher realizations in JLR. Wholesale volumes are weak in JLR (-10% CAGR) and standalone (-9% CAGR) divisions. We expect ramp-up in dispatches in both JLR and standalone divisions in H2,” the brokerage firm has said.
Emkay Global also sees EBITDA margin to contract to 1% from 5.5% in Q1FY20. “Margin contraction of 570bps qoq is likely due to commodity inflation and lower scale,” the brokerage has said.
Motherson Sumi Systems
Motherson is one of the top auto ancillary companies and has over 270 facilities operating in 41 countries across North America, South America, Europe, South Africa, Middle East, Asia Pacific and Australia.
In the auto ancillary space, Motherson Sumi Systems is one of the stocks that Emkay Global is the most bullish on. The firm has set a solid robust target of 38% upside from the current levels of Rs 238.
According to the brokerage revenues of Motherson Sumi Systems are estimated to witness growth at +5% CAGR. “On qoq basis, revenues should increase by 5% due to growth in automobile production in Europe and US PV segments. EBITDA margin should expand to 10.3% from 6.8% in Q1FY20. Margin is likely to expand marginally by 10bps qoq due to higher scale,” the brokerage has said. The shares of Motherson Sumi were last trading at Rs 238 on the NSE.
Ashok Leyland
This is another stock with a “buy” rating from Emkay Global. The firm sees an upside possibility of 24% on the stock from the current levels.
According to the firm, revenue is likely to decline at -30% CAGR. “Volumes to decline at 33% CAGR, but realizations are likely to increase at +4% CAGR. Sequentially, realizations should decrease by 3% due to adverse mix (lower share of MHCVs). EBITDA margin should contract to -3.2% from 9.4% in Q1FY20. Margin contraction of 1,080bps qoq is likely due to lower scale,” the brokerage has said.
The brokerage has a 34% upside target on 2-wheeler major HeroMoto Corp. The brokerage believes that volumes are likely to recover sequentially in Q2, supported by pent-up demand and the marriage season. The firm has set a robust price target of Rs 3,870 on the stock.
According to Emkay Global revenues are expected to decline at -15% CAGR, led by lower volumes (-25% CAGR).
“Realizations are likely to increase at +14% CAGR. On qoq basis, realizations should increase by 3% on price hikes and better mix. EBITDA margin should contract to 11% from 14.4% in Q1FY20. On qoq basis, margin contraction of 290bps is likely due to commodity inflation and lower scale,” the brokerage has said.
Views mentioned herein are taken from the brokerage report of Emkay Global Financial Services. 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.
