Category: Personal Finance

Bharat Petroleum Corporation (BPCL)

The Bharat Petroleum Corporation Ltd. was founded in 1952. Its share price presently is 462.65. The firm has a high level of operating leverage, with an average operating leverage of 4.57. The company’s cash flow is well-managed, with a CFO/PAT ratio of 1.25. Its current market capitalisation stands at Rs 100360.48 Cr. Over a three-year period, the stock earned 25.34 percent, while Nifty Energy returned 49.85 percent to investors. BPCL has a PE ratio of 5.27, which is low and undervalued in comparison. The D/E ratio of BPCL is 1.44, indicating that the company has a low debt-to-capital ratio. BPCL’s current year dividend is Rs 16.50, with a yield of 17.09 percent

Reliance Industries

The company Reliance Industries Ltd. was founded in 1973. Its share price currently is 2129.2. It currently has a market capitalization of Rs 1439779.95 crore. The company reported gross sales of Rs. 2789400 crores and total income of Rs. 2611790 crores in the most recent quarter. ies has a high PE ratio of 45.07, indicating that it is expensive, as well as a high EPS of 47.24 which is good. Reliance Industries’ current year dividend is Rs 7, with a yield of 0.33 percent.

HPCL

Only 2.4 percent of trading sessions in the last 16 years had intraday gains of more than 5%. Over a three-year period, the stock returned 14.73 percent, whereas Nifty Energy returned 49.85 percent to investors. The company has a high operating leverage, with an average operating leverage of 10.56. In Jammu and Kashmir and Ladakh, Hindustan Petroleum Corporation (HPCL) has become the first oil company to begin supplying ethanol-blended gasoline. Fuel is sent to the Ladakh region via the company’s Leh facility, which is located at an elevation of 11,500 feet. A common guideline is that stocks with a low P/E ratio are undervalued (it depends on other factors too). HPCL has a PE ratio of 3.96, which is low and inexpensive in comparison ahd high EPS of Rs75.17.

Oil India

Over a three-year period, the stock earned -18.44 percent, compared to Nifty Energy, which returned 49.85 percent. Only 0.89 percent of trading sessions in the last 11 years had intraday gains of more than 5%. In the last five years, the company has maintained effective average operating margins of 33.47 percent. Oil India has a PE ratio of 10.54, which is low and cheap by comparison. Oil India’s current year dividend is Rs 10.60, with a yield of 6.32 percent.

Adani Enterprises

Only 3.97 percent of trading sessions in the last 16 years had intraday drops of more than 5%. The stock returned 1253.69 percent over three years, compared to 45.73 percent for the Nifty 100. The corporation manages its cash flow well, with a CFO/PAT ratio of 2.48. Adani Enterprises’ PE ratio is 424.06, which is high and pricey in comparison but the stock has done extremely well when compared to peers. Adani Enterprises has an Inventory Turnover Ratio of 10.17, indicating that the company’s inventory and working capital management are inefficient.

Continental Petroleums

Stock returned 107.51 percent over three years, compared to 37.42 percent for the Nifty Smallcap 100. Continental Petroleums Ltd. was founded in 1986 and is based in the United Kingdom. The current share price is 56.65. It now has a market capitalization of Rs 31.5 crore. For the past three years, the company has showed a good profit growth of 41.96 percent. The corporation manages its cash flow well, with a CFO/PAT ratio of 2.58

Energy Growth Stocks With High EPS and Low PE ratio

Top 10 Best Energy Stocks with Highest Market Cap

Disclaimer

Past stock performance is not a guarantee of future success. Market investments are susceptible to market risk. Any losses caused as a result of a choice based on the preceding content are not the responsibility of the author or Greynium Information Technologies. As a result, investors should proceed with care, as markets have risen dramatically. Please seek the advice of a professional expert.

Edelweiss Large & Mid Cap Fund

The fund generates returns by investing in both midcap and large caps. Edelweiss Large & Mid Cap Fund has been rated as 5-star by noted rating agency CRISIL.

In the fund, the fund manager has the flexibility to switch between large caps and midcaps. So, if for example large cap stocks have become expensive in terms of valuations, he can quickly move money to midcaps by selling a part of large cap stocks.

The funds assets under management is not too large and is placed at around Rs 778 crores. Banking stocks continue to remain at the top of the investment strategy of the fund with ICICI Bank, HDFC Bank, State Bank and Axis Bank finding a place in the top 5 holdings of the fund.

Given the good rating of the fund By CRISIL, investors can look to invest by way of SIPs in Edelweiss Large & Mid Cap Fund.

Invesco India Midcap Fund

This is another fund that been accorded a 5-star rating by CRISIL. Midcaps by nature are volatile and with the Sensex at record highs, investors should exercise same discretion and should hence go for SIPs of Invesco India Midcap Fund.

Minimum number of cheques required for SIPs is 12 and minimum amount required is Rs 500. Invesco India Midcap Fund holdings include names like Vinati Organics, Endurance Technologies Mpahsis, Cholamandalam and Gland Pharma.

The net asset value under the growth plan is Rs 78.99. Investors who can stay invested for a long term may reap decent returns.

The 1-year returns of the fund has been 67%, thanks to the rally seen in the last 1-year in stocks. Invesco India Midcap Fund is an open ended fund with assets under management of nearly Rs 1,500 crores.

IDFC Dynamic Bond Fund

If you are risk averse and looking at debt, where safety is important than IDFC Dynamic Bond Fund is a good investment. IDFC Dynamic Bond Fund has been rated as 5 star by CRISIL and money is locked in debt instruments and money market instruments.

The 3-year returns from the fund has been 9.94%, while the 5 year returns is 8.4%. More than 90% of the fund is invested in government securities, making IDFC Dynamic Bond Fund a safe investment option. Returns from these type of funds, generally move in tandem with how interest rates move. If interest rates move higher returns tend to be higher and so on. An SIP is possible in the fund with a minimum investment of Rs 1,000 every month.

SBI Equity Hybrid Fund

SBI Equity Hybrid Fund invests in equities and balances the risk by investing the rest in fixed income securities as well. The fund has invested around 70% in equities and around 30% in debt and cash.

SBI Equity Hybrid Fund has been rated as 5-star by Crisil and 4-star by Value Research. The returns in these type of funds can be lesser than the pure vanilla equity funds should the market rise as a part of the money is invested in debt. However, should the markets fall the losses could be restricted given the exposure to debt.

Canara Robeco Conservative Hybrid Fund

This fund generates income through investment in debt securities with marginal exposure in equity and money market instruments of various maturities and risk profile.

Value Research and CRISIL have both accorded the fund a 5-star rating. One can start an SIP in the fund with a small sum of Rs 1,000 each month.

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.

Laurus Labs Ltd

Sharekhan has said to buy the stock of Laurus Labs with a price target of Rs 750, as against the current market price of Rs 677.85.

Laurus Labs works with the top 10 generic pharmaceutical companies in the world. The company sells Active Pharmaceutical Ingredients in 56 countries and its major focus areas include anti-retroviral, Hepatitis C and Oncology drugs.

Among the numerous reasons why the firm likes the stock of Laurus Labs includes robust growth prospects, sturdy capex, likely market share gains would support the management’s target of achieving a topline of $1 billion in the next two years.

“The company’s key focus areas for sustainable growth include – leveraging cost advantages in API business to integrate into fixed dosages, develop synthesis business, capitalise on leadership in select high-growth Active Pharmaceutical Ingredients, expansion of Active Pharmaceutical Ingredients portfolio to other therapeutic areas and lastly, ESG integration,” the broking firm has said.

Laurus Labs: Valuations Are Inexpensive

“Laurus has targeted $1 billion in revenues by FY2023E. At the current market price, the stock trades at 29x/22.7x its FY22E/FY23E Earnings Per Share. Over the past six months, the stock price has outperformed the BSE Sensex and Healthcare index by 79% and 71% respectively and given the strong growth prospects, visibility on earnings, healthy return ratios and low debt-equity, outperformance is likely to sustain. We retain our Buy recommendation on the stock of Laurus Labs with a revised price target of Rs. 750,” the brokerage has said.

According to Sharekhan the key risks for the company would be a delay in product approvals or any negative outcome of facility inspections by the USFDA can affect earnings prospects.

The shares of Laurus Labs were last seen trading at Rs 665 on the NSE.

UPL

Sharekhan also has a buy on the stock of UPL with a price target of Rs 930 on the stock as against the current market price of Rs 799. UPL is a producer of crop protection products, intermediates, specialty chemicals and other industrial chemicals.

Among the main reasons Sharekhan is suggesting to buy the stock, include an aim to double revenue from biosolutions to $700 million by FY24-25. The firm also sees the strong R&D pipeline (peak revenue potential of $4-4.5bn) and tie-ups with FMC and Meiji for launch of a new formulations as big positives.

“It makes us confident that UPL can achieve the higher end of long-term revenue growth guidance of 7-10%. Q1FY22 outlook – Strong mid double-digit growth for India, Latin America and Rest of World while the US and Europe may witness flat-to-moderate growth, with price hikes on cards across regions. Focus on deleveraging balance sheet to continue with a plan to further reduce debt by $500 million Financial Year 2022,” the brokerage has said.

UPL: Good potential for the stock to rally

According to Sharekhan, UPL’s recent collaboration with MNCs for new products and target to achieve 50% of revenue from differentiated & sustainable solutions) would improve margin/ earnings profile and drive sustainable growth.

“Valuations are attractive at 12.6x FY2023E its EPS and 10.8x FY2024E EPS. Hence, we maintain a Buy rating on UPL with a revised target price of Rs. 930,” the broking firm has said.

Among the key risks that the firm sees for the company are a slowdown in the global agrochemical industry and delay in the flow of benefits from Arysta’s integration might impact performance.

“Currency fluctuations might impact the company, as UPL has a significant presence in various geographies,” it has said.

The shares of UPL were last seen trading at Rs 799 on the NSE.

Buy Sumitomo Chemical, says Sharekhan

Sumitomo Chemical India is another stock that Sharekhan has suggested investors to buy. The firm has set a price target of Rs 450 on the stock as against the current market price of Rs 395.

Among the many reasons the firm sees to buy the stock, includes a focus on high margin PGRs/herbicides, rising share of specialty chemicals and further synergies from Excel Crop Care, which is to drive 346 basis points expansion in margins and take EBITDA margins to 22% in FY24.

Sumitomo Chemical India: A decent price target

Sharekhan has said that it maintains its Buy rating on the stock of Sumitomo Chemical India with a revised target of Rs 448 as massive contract manufacturing opportunity from parent provides superior growth prospects and expect SCIL to enjoy premium valuation over domestic peers.

Disclaimer

All of the above stocks are picked from the report of brokerage firm Sharekhan. Investing in stocks are 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. Investors should hence exercise due caution as markets have run-up significantly.

Bitcoin price volatility or ups and downs so far:

After having come into existence in 2009, bitcoin has been witness to major ups and downs.

Started trading in 2010– At a fraction of a cent

In 2011: $1 in price for the first time

In 2017: Price scaled to $5000 for the first time

On December 17,2017: Bitcoin prices hit an all time high of $19,783.06

December 6, 2020: Prices hit $20000 for the first time for a BTC

February 9, 2021: BTC scaled in price to $48,000 after Tesla purchased bitcoin worth $1.5 billion

March 13, 2021: New high of $61,701

April 13, 2021: Prices hit an all time high of $63,375 and then again a new high of $64863

April 18, 2021: biggest one day drop of 25% to $55000

May 23, 2021: Slides down in value to $31000 on environmental and other concerns such as China cryptocurrency clamdown.

July 4, 2021: Now as we write BTC quotes at a price of $34,455, which is a meaningful gain of 17.5% from January 1 price of $29411.

Considering the sharp volatility should you invest in Bitcoin?

In nearly 10 years time, Bitcoin has sharply gained in value from $1 to in 2011 to close $34500 US dollar in July 2021. While the future of any asset for that matter is hard to predict, it is even harder for cryptocurrencies and some of the experts say that their longevity cannot be doubted as store of value and media of exchange. It is even being preached that in next 50 years time dollar or for that matter currency shall be more similar to crytocurrencies than gold or silver, so with the faster adoption and divergence towards digital modes, so investments in cryptos shall only accelerate.

Also, another use case of Bitcoin that shall enable it to strengthen in value over the time is its ability to facilitate payment across geographies with no cost, delay or even currency fluctuation. So it may likely be the case that down the years bitcoin can even become the reserve currency of the world.

Another concern that can be put in here is that bitcoin lost a great deal in value after coming into limelight due to the extent it uses energy and now as stakeholders have been looking at ways of minting them in a environmental friendly way, they will be relatively safer on this front going ahead.

Thus considering the above views, while there could be some corrections or crashes due to some imminent developments, the future of bitcoin looks strong.

What can be the safe ways to invest in Bitcoin?

1. You can bet in small portions: If you are optimistic on the bitcoin prospects going ahead, at best you can put in 2 percent of your overall financial allocation into it.

2. Stay invested or put for longer duration: The sharp volatility shall not push you to offload your position in BTC or for that matter in any of the cryptocurrency. For cryptocurrency volatility is an intrinsic or built in trait which the investor needs to be comfortable with.

3. Investors can also consider investment in stablecoin which are far more stable in value:

Those not comfortable with high volatility in cryptos can also consider investment in stablecoins that are backed by an asset and show stability in price.

4. Invest in company stocks that have good exposure in cryptos:

Good companies with good fundamentals and having some association with bitcoins or other cryptocurrencies can also be betted on as for eg: Tesla, Facebook, Microstrategy. One can even invest in trusts or funds for safer investment in cryptocurrencies.

5. Risk in cryptos can also be minimized by booking profits at frequent intervals:

As and when profit accrues in respect of your bitcoin holdings, it can be a good idea to book them. This is because with time, number of people and other stakeholders that have got into the asset class has only increased and with more of demand, considering the market forces factor, price of bitcoin have only increased.

Bullish Price Target for Bitcoin

The investment bank JP Morgan has set a long-term Bitcoin price target of $130,000. The idea behind the target is tat bitcoin’s volatility shall fall with that of gold. And this shall in turn get in support from institutional support. So, hence JPMorgan said “the above $130,000 theoretical Bitcoin price target should be considered as a long-term target.”

GoodReturns.in

In accordance with Section 9B and Subsection (4) of Section 45 of the Income-tax Act of 1961, the Central Board of Direct Taxes (CBDT) established instructions for taxing partnership firms on their reconstitution.

After the Finance Act of 2021 added a new section 9B to the Income Tax Act and replaced another provision – 4 of section 45 – the recommendations aim to provide clarity on the techniques to be used when calculating tax liabilities.

Section 9B taxed the firm’s income on the transfer of capital assets and stock in trade, whereas Section 45(4) now taxes income in the hands of the firm, which is actually the income in the hands of the partner.

The CBDT observed that the amount taxed under section 45(4) of the Act must be attributed to the specified entity’s remaining capital assets, so that when such capital is transferred in the future, the amount attributed to such capital assets is subtracted from the value of the consideration, and the specified entity does not have to pay tax on the amount again.

It should also be noted that this attribution is only made in the Act for the purposes of section 48 of the Act.

The adjustments will take effect in the evaluation year 2021-22. These parts cover the deemed transfer of a capital asset or stock in trade to a firm’s leaving partner and the receipt of a capital asset or funds by a firm’s partner. Any profits and gains flowing from such a presumed transfer are considered as partnership income under the Finance Act.

In a circular, the CBDT stated that the instructions were issued under provisions intended to make implementation easier. The recommendations explain how to attribute an entity’s income on its reconstitution and provide examples of scenarios where a partner leaves a firm and the organisation settles the capital balance.

The Act does not, however, state that the amount charged under section 45(4) of the Act can also be ascribed to capital assets that are part of a block of assets and are covered by these two sections.