Category: Personal Finance

1. Steel Authority of India:

ICICI Securities has placed a ‘Buy’ call on the scrip of Steel Authority of India at a price of Rs. 130 ( the price at the time of recommendation). The brokerage sees the target for the scrip at Rs. 160 i.e. an upside of over 28% from the last traded price of Rs. 124.8.

“SAIL has adopted a focused approach on improving its volume, improving its operational efficiencies, operating the facilities at optimum levels, deleveraging its balance-sheet, etc.

In line with its focus on reducing the borrowings. SAIL has reduced its net debt by Rs. 16200 crore in FY21. Going forward also, we expect SAIL’s net debt to further reduce by Rs. 6800 crore, over the next couple of years. We model sales volume of 17 MT for FY22E and 19 MT for FY23E. We value the stock at 5.5x FY23E EV/EBITDA and arrive at a target price of Rs. 160 (earlier Rs. 130). We maintain our BUY recommendation on the stock”, said the brokerage firm in its report.

SAIL has been among the top companies which have reduced debt substantially by as much as Rs. 18,551 crore in the FY 2020-21 and this has been aided by increase in steel prices.

The scrip of SAIL last traded at a price of Rs. 126 per share on the NSE.

2. ONGC:

Geojit Paribas has given a 20.88% upside for the stock of ONGC i.e. a key oil drilling and exploration company of India. The target price seen for the scrip is Rs. 145 and at the time of stock recommendation, the stock quoted at a price of Rs. 118.45.

Rationale for the Buy on ONGC as suggested by Geojit Paribas:

With sharp recovery in crude oil prices in FY21, we expect the segment to witness further growth in coming quarters. Upward revision in Gas prices and any improvement in demand scenario should boost the performance further. Therefore, we reiterate our BUY rating on the stock with a revised TP of Rs. 145 based on SOTP valuation, said the brokerage in its report dated June 29, 2021.

“Considering the full recovery in crude volumes and realization, ONGC’s topline performance now largely depends on movement in gas prices and its offtake. Revenue growth from Natural gas and Value-Added products is expected to improve as the impact from partial lockdowns mitigates. Also, possible hike in natural gas prices could drive the performance further”, added the brokerage.

Financials:

The company’s standalone revenue registered a decline of 1.2 percent YoY to Rs. 21,189 crore owing to lower realization as well as weak demand. Nonetheless, EBITDA improved owing to lowering of material costs as well as other expenses. PAT also registered a 144.6% YoY increase.

3. Balaji Amines:

CD Equisearch has given a Buy recommendation for this specialty chemicals company scrip of Balaji Amines At the time of recommendation, the price of the scrip was at Rs. 2670.25, while the suggested upside is Rs. 3613, an upside of over 28%.

The company is a specialist in the manufacturing of Methylamines, Ethylamines, Derivatives of Specialty Chemicals and Pharma Excipients. Also the company is into manufacturing of derivatives that are downstream products for various Pharma /Pesticide industries apart from user specific requirements.

“The stock currently trades at 25.5x FY22e EPS of Rs. FY23e EPS of Rs. 105.4and 22.3 xFy 23e EPS of Rs. 120.44. ROE would improve to 32.7% in FY22 and 28% in FY23. Growth in the coming years would barely stymie not least due o planned debottlenecking of acetonitrile plant, increased capacity utilizations of both DMF and newly unveiled ethylamine plant. The strong demand for EDA shall also have a larger role to play. Better negotiating power and economies of scale arising out of future investments will improvise the company’s cost structure and provide it with necessary economic moat. Free cash flows would rise not unremarkably this fiscal largely due to record profits. we retain our buy rating on the stock with revise target of Rs 3613 (previous target: Rs 1104) based on 30x FY23 earnings”, said the brokerage report.

The scrip of Balaji Amines last quoted at a price of Rs. 2821.15.

4. Vardhman Special Steels

ICICI Securities has set out a target price of Rs. 300 for this medium and small steel entity, i.e. sees a potential upside of over 19 percent.

VSSL is currently in a sweet spot on the back of a) recent price hike received from OEMs, b) receipt of the long-awaited environmental clearance (EC),which has cleared the pathway for expansion plans, c) good demand from the user industry segment. On the back of healthy operating environment,we remain positive on the stock. On the back of recent price hike received by the company from OEMs, we upward revise our estimates both for FY22Eand FY23E. We value the stock at 7.5x FY23E EV/EBITDA and arrive at a target price of Rs. 300 (earlier Rs. 240). We maintaining BUY recommendation on the stock, said the brokerage in its report.

Disclaimer:The stocks listed in the story are taken from different brokerage reports. Investing in stocks is risky and investors should do their own research. The author, the brokerage firm or Greynium Information Technologies Pvt Ltd is not responsible for any losses incurred due to a decision based on the above article.

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Company Profile Of Clean Science and GR Infra:

As per the company’s website, Clean Science is a Maharashtra Pune-based fine chemical manufacturing and exporting company of India. The company develops unique chemical process in-house that are eco-friendly as well as competent on the cost parameter. Furthermore, for some of the specialty chemicals the company is the leading manufacturer globally.’

GR Infraprojects:

The company is a road Engineering, Procurement and Construction (EPC) company and has recently added railway sector to its portfolio. Also, the company is into manufacturing activities wherein it processes bitumen, manufactures thermoplastic road-marking paint, electric poles and road signage and fabricate and galvanize metal crash barriers.

Issue details

Clean Science: The Rs. 1546 crore IPO of Clean Science is purely an OFS by existing shareholders and promoters and the entire proceeds shall be available to the entities’ paring their stake. Further as per the company’s Wholetime Diector the company has enough cash of Rs. 250 crore on its balance sheet.

IPO Price– Rs. 900

Peers for the company- Vinati, Fine Organics, Atul, Camlin, PI Industries

GR Infraprojects:

The IPO of GR Infra shall also be a complete OFS in the price band of Rs. 827-837 per share. The issue size of the offer is Rs. 963 crore. So, by and large the issue is being floated to providea liquidity opportunity to the existing shareholders of the company.

Peers of the company: KNR, PNC, IRB etc.

Valuations:

On the valuation front, GR Infra is said to be attractive commanding a P/E of 8.5 as against the industry average P/E of 16.73.

“In terms of the valuations, on the higher price band, GR Infra demands a P/E multiple of 8.5x based on FY21 post issue fully diluted EPS and EV/EBITDA of 6.5x post issue fully diluted FY21 EBITDA. Almost all listed peers are trading in the range of 11x – 45x and industry average is at 22x. Despite of reporting better return ratios compared to peers, GR Infra is valued at a significant discount to peers, said Ashika Research firm. Thus, issue looks attractive in terms of valuation.

Given the healthy growth prospects and considering the strong emerging opportunity for road infrastructure, strong order book with order book to sales ratio of 2.4x, timely execution of order, expand to new geographies and segments, strong financials and healthy balance sheet augur well for the company’s performance going forward. Hence, it is recommended to “SUBSCRIBE” the issue.

Likewise, IPO Of Clean Science has also been given a ‘Subscribe’ call by Ashika Research on the premise that the company demands a P/E multiple of 48.2x based on FY21 post issue fully diluted EPS. Almost all listed peers are trading in the range of 42x – 77x and industry average is at 60x. Despite of reporting better return ratios compared to peers, CSTL is valued at discount to peers. Thus, issue appears attractive for

investment.

Further the research firm has given the following rationales

Given the healthy growth prospects and China plus one policy, largest manufacturer of certain specialty chemicals, expanding manufacturing facility, expanding R&D infrastructure, strong financials and healthy balance sheet augur well for the company’s performance going forward. Hence, it is recommended to “SUBSCRIBE” the issue.

ICICI Direct has also iterated a ‘Subscribe’ call to the issue of Clean Science and said The company recorded revenue growth of 14% CAGR in FY19-21 supported by higher volume growth across the segments. With changes in the anisole manufacturing technology, it was able to improve gross margins, to a certain extent, and thereby OPM. At | 900, the stock is available at 48.2x FY21. We assign a SUBSCRIBE rating to the issue, added the brokerage report.

Conclusion:

If you are having good cash flow you can consider investment into both of these IPO offers. Nonetheless, if you have two choose between the two, analysts have given a preference to the IPO of Clean Science as the company has been consistent with its financial performance, also GMP for the scrip is between Rs. 400- Rs. 450, suggesting almost 50% listing gains. Nonetheless, long term potential of the scrip is also good with good earnings expectation as the stock can hit a price of Rs. 2000 – Rs. 2500 in a short period.

Mirae Asset Large Cap Fund Direct Growth

This scheme was launched by Mirae Asset Mutual Fund in January 2013. Mirae Asset Large Cap Fund Direct has a 1-year growth rate of 52.81 per cent. According to Value Research, it has provided an average yearly return of 18.07 per cent since its inception. The bulk of the capital in the fund is invested in the financial, technology, energy, fast-moving consumer goods, and healthcare sectors.

HDFC Bank Ltd., Infosys Ltd., ICICI Bank Ltd., Reliance Industries Ltd., and Axis Bank Ltd. are the fund’s top five holdings. The fund’s expense ratio is 0.54 per cent, which is comparable to the expense ratio charged by other large cap funds in the category. The current Asset Under Management (AUM) of the fund is Rs 25,721 Cr and the latest NAV as of 5 July 2021 is Rs 77.95. This fund has an exit load of 1% if units redeemed within 1 year of investment and one can start SIP in this fund by Rs 1000.

Canara Robeco Bluechip Equity Fund Direct Growth

Canara Robeco Bluechip Equity Fund Direct-Growth is a large cap scheme of Canara Robeco Mutual Fund that was established in January 2013. Canara Robeco Bluechip Equity Fund Direct-Growth returns have been 50.87 percent during the last year. According to Value Research, it has provided an average yearly return of 15.71 percent since its inception. The financial, technology, energy, construction, and automobile sectors account for the majority of the fund’s asset allocation.

HDFC Bank Ltd., Infosys Ltd., ICICI Bank Ltd., Reliance Industries Ltd., and Tata Consultancy Services Ltd. are the fund’s top five holdings. As of July 5, 2021 the fund has an AUM of Rs 2,886 Cr and NAV is Rs 41.93. The fund’s expense ratio is 0.44 percent, which is quite close to the expense ratio charged by other large cap funds. The fund charges an exit load of 1% if units are redeemed within 1 year of contribution. With a minimum amount of Rs 1000 one can start SIP in this fund.

Kotak Bluechip Fund Direct Growth

This scheme was launched in January 2013 by Kotak Mutual Fund. The 1-year returns for Kotak Bluechip Fund Direct-Growth are 54.51 percent. According to Value Research, it has provided an average yearly return of 15.35 percent since its debut. The fund has equity asset allocation across financial, technology, energy, fast-moving consumer goods, and construction sectors. ICICI Bank Ltd., HDFC Bank Ltd., Reliance Industries Ltd., Infosys Ltd., and Tata Consultancy Services Ltd. are the fund’s top five holdings.

The fund’s expense ratio is 0.92 percent, which is much higher than the other large cap funds. The fund has an asset under management of Rs 2, 642 Cr and NAV as of July 5, 2021 is Rs 376.72. If units in excess of 10% are redeemed within one year of investment, the fund charges a 1% exit load. One can invest in this fund by making a minimum contribution of Rs 1000.

Axis Bluechip Fund Direct Plan Growth

This large cap fund was launched by Axis Bank Mutual Fund in January 2013. Returns for Axis Bluechip Fund Direct Plan-Growth during the last year have been 46.53 percent. According to Value Research, it has produced an average yearly return of 16.99 percent since its debut. The fund has its equity asset allocation across financial, technology, healthcare, services, and fast-moving consumer goods sectors. HDFC Bank Ltd., Infosys Ltd., Bajaj Finance Ltd., ICICI Bank Ltd., and Tata Consultancy Services Ltd. are the fund’s top five holdings.

The fund has an expense ratio of 0.5% and a 1% exit load is charged by the fund if units in excess of 10% redeemed within 1 year of investment. The latest NAV as of July 5, 2021 is Rs 46.68 and the fund has an asset under management of Rs 27,142 Cr. One can start investing in this fund by making a minimum SIP of Rs 500.

Best Performing Large Cap Funds

Here are the best large cap mutual funds based on returns and rating.

Should you invest?

Large-cap mutual funds are mostly preferred for long-term investors. Let’s say investors who have a personal finance goal of 5 years or more, large cap mutual funds are the best to bet. By taking this into consideration, large cap mutual funds have given decent returns if we look at the past returns. According to Value Research, large cap mutual funds have given an average of 16.21% SIP returns over the last 5-years.

The reason why we have taken SIP returns as an example for our readers is that they can watch their investment grow big by making a small amount of contribution. It is suggested that you invest in large cap funds for at least 5 years to get the most out of them. Large cap funds have a relatively high-risk profile, which essentially means that aggressive investors seeking long-term gains may consider investing in them. If you have a low to moderate risk tolerance, you may diversify your portfolio by investing in the top-performing debt funds and equity mutual funds. However, investing in equity mutual funds for the long term is recommended, as these funds may be risky in the short term.

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

1. ICICI Prudential Nifty Index Fund-

For the direct plan, the fund carries an expense ratio of just 0.1%. Index is primarily suitable for those investors who are looking at long term wealth creation and aiming to get returns at par with Nifty 50 index.

The fund as of May 31, 2021 commands an AUM of Rs. 1696.95 crore.

SIP in the fund can be started for as less as Rs. 100.

The index fund from ICICI Prudential has managed to offer 1-year return very close to the Nifty 50 TRI i.e. with a low tracking error.

Some of the top Nifty stocks that form the part of the ICICI Prudential Nifty Index Fund are RIL, HDFC Bank, Infosys, ICICI Bank, TCS etc.

2. ICICI Prudential Sensex Index Fund-

Here also for the direct plan the fund entails a expense ratio of just 0.1 percent. NAV of the fund as on July 5, 2021 is 16.83 and the fund is given a 5-star rating by Value Research. The fund AUM as on May 31 has been Rs. 266 crore. In terms of 1-year return, the fund has lagged the benchmark which has delivered 52% return, while the fund has given over 47% return.

SIP in the fund can be started for as low as Rs. 100 and a SIP started 3 years ago has managed to be Rs. 4.91 lakh in value with an investment of Rs. 3.6 lakh.

Majorly the fund is allocated into large cap with financials forming the bulk of the holdings i.e. as much as 42%.

3. Nippon India Index Fund-Sensex Plan:

Nippon India Index Fund-Sensex plan in case of the direct plan charges an expense ratio of just 0.15%. This fund has been rated with 2 stars by CRISIL, while Value Research has accorded the fund a 4-star rating. This expense ratio is less than most other large cap mutual funds.

AUM of the fund as on June 30, 2021 is Rs. 148 crore. Furthermore, there are exit load charges as well which have been pegged at 0.25%.

Over the last 1 year, the returns from the fund have been 47.71% and since launch it has offered 13.01% average annual return. Every 2 years, investors can see their money doubling in value. Furthermore, most of the funds’ corpus is put into financial, energy, FMCG, construction sectors. The top 5 holdings of the fund are in Reliance Industries Ltd., HDFC Bank Ltd., Infosys Ltd., Housing Development Finance Corpn. Ltd., ICICI Bank Ltd..

4. Motilal Oswal Nifty 50i Index Fund

This fund intends to provide return close to the Nifty 50 index subject to tracking error. The expense ratio charged by the fund for the direct plan is 0.1 percent.

AUM of the fund as on June 30, 2021 is Rs. 73 crore. With a moderately high risk, the fund’s 1-year return has been close to 50%. Since inception, the fund’s absolute return has been close to over 30 percent.

Majorly fund is invested into financial stocks and top holdings include RIL, HDFC Bank, Infosys, HDFC, ICICI Bank etc.

Investors can invest into the scheme for as less as Rs. 500 through both SIP as well as in a lump sum way.

Conclusion:

Note these charges or expense ratio i.e. charged for managing the fund is computed annually influences the fund’s returns for its shareholders and hence the value of their investment. Say for an instance: If a fund with an investment of Rs. 10000 entails 2% as charges then Rs. 200 shall be payable by you as this charge and if on that fund, there is a return of say 12% your net return will turn out to be 10%. Thus lower expense ratio will always increase your profits and hence return on your investment.

Disclaimer:

Investing in mutual funds is risky and investors should understand the risk. Greynium Information Technologies and the author do not take any responsibility for losses incurred based on the decisions in the article. The article is meant for informational purposes only.

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For risk-averse investors or senior citizens, investing in fixed deposits are highly preferred if they are not much familiar with the market-based returns. Starting from achieving short-term goals i.e. making investments for 1 year to long-term goals i.e. investing for 10 years or more, fixed deposit investments are the must-have in your portfolio during the market downturn. Apart from flexible tenure, fixed deposit investments promise assured returns, which is the only key reason to pick them.

Amid the current low-interest-rate regime where leading banks are just providing an interest rate of around 5 to 6%, there are still some banks that will offer you decent returns from 6.75% to 7.25%. These huge returns are currently provided by small finance banks which not only give you the best deal but also falls under the insurance cover of DICGC. So if you are a new investor or an investor with a low-risk profile, here are the top 5 small finance banks that are currently promising higher returns on fixed deposits of less than Rs 2 Cr.

Jana Small Finance Bank Fixed Deposit

Jana Small Finance Bank is promising an interest rate of 2.5% to 6.75% to the general public and 3.00% to 7.25% to senior citizens. For a deposit period of more than 3 years to less than 5 years, the bank provides the highest interest rate of 6.75 and 7.25% respectively. With effect from 07.05.2021, Jana Small Finance Bank is promising the following interest rates.

Tenure	Regular FD Rates	Senior Citizen FD Rates
7-14 days	2.50%	3.00%
15-60 days	3.00%	3.50%
61-90 days	3.75%	4.25%
91-180 days	4.50%	5.00%
181-364 days	5.50%	6.00%
1 Year[365 Days]	6.25%	6.75%
> 1 Year – 2 Years	6.50%	7.00%
>2 Years-3 Years	6.50%	7.00%
> 3 Year-	6.75%	7.25%
5 Years[1825 Days]	6.50%	7.00%
> 5 Years – 10 Years	6.00%	6.50%
Source: Jana Small Finance Bank

Ujjivan Small Finance Bank Fixed Deposit

Ujjivan Small Finance Bank fixed deposit comes with a maturity period of 7 days to 10 years. The bank is currently promising an interest rate range from 3.05% to 6.75% to the general public with an additional rate of 0.50% to senior citizens. Here are the most recent fixed deposit interest rates of Ujjivan Small Finance Bank, which are in force from 5 March 2021.

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: Ujjivan Small Finance Bank

Suryoday Small Finance Bank Fixed Deposit

Suryoday Small Finance Bank comes with a fixed deposit interest rate of up to 6.75% for both the general public and senior citizens. For a deposit period of 3 years to less than 5 years, this bank is currently promising the highest return of 6.75%. With effect from June 21, 2021, Suryoday Small Finance Bank is offering the following interest rates.

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: Suryoday Small Finance Bank

Utkarsh Small Finance Bank Fixed Deposit

With effect from July 1 2021, Utkarsh Small Finance Bank is promising an interest rate of up to 6.75% to the general public and 7.25% to senior citizens. On a deposit period of 700 days, the bank is promising the highest rate of interest. Here are the most recent interest rates of Utkarsh Small Finance Bank.

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: Utkarsh Small Finance Bank