Category: Personal Finance

Reliance Jio

According to the firm, Reliance Jio plans to accelerate growth through JioPhone, Enterprise Data, and other digital avenues via the recent spate of launches, coupled with new digital app offerings.

“Thus, we assign an EV/EBITDA multiple of 20 times on FY23 EBITDA, with a target price of Rs 847 per share (for its 66% stake). The higher multiple captures the digital revenue opportunity, potential tariff hikes, and opportunity in the Feature Phone market (not built into our estimates),” Motilal Oswal Institutional Equities has said.

Retail business

The firm values Reliance Retail’s core business at 35 times FY23E EV/EBITDA and assign 4 times to Connectivity, arriving at target price of 755 – after excluding the recent 10% stake sale.

“Our premium valuation multiples capture the accelerated growth in new store openings, digital commerce, and the new JioMart platform,” the brokerage has said.

Oil to chemicals business

“Vaccination drives appear to be gaining momentum the world over, with large economies such as the US and India inoculating more than 4m daily. This is expected to soon revive demand for transportation fuels, thus boosting gross refining margins. Since the company has stopped disclosing GRMs separately, we build in EBITDA of USD107/134/mt for FY22/FY23E (vis-à-vis USD73-84/mt reported over 3Q- 4QFY21) – on the back of improvement in refining and petchem margins,” Motilal Oswal Institutional Equities has said.

“Using SOTP, we value the Oil to chemicals business at FY23E EV/EBITDA of 7.5x, arriving at a valuation of Rs 764 per share for the standalone business, and add Rs 68 for the E&P assets. We ascribe an equity valuation of a) Rs 847/share to RJio on FY23E 20x EV/EBITDA and b) Rs 755/share to Reliance Retail on FY23E 35x EV/EBITDA, factoring in the recent stake sale. Reiterate Buy, with target price of Rs 2,430 per share,” Motilal Oswal Institutional Equities has said.

The shares of Reliance Industries was last seen trading at Rs 2,257 on the BSE.

Disclaimer

The information above is based on the report of Motilal Oswal Institutional Equities. Investing in stocks are risky and investors should do their own research. The author, the brokerage firm or Greynium Information Technologies are 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. Please consult a professional advisor.

Quant Tax Plan Direct Fund

Quant Tax Plan Direct-Growth Fund has a total asset under management (AUM) of Rs 204 crore, with a current net asset value (NAV) of Rs 204.02 as of June 21, 2021. The 1-year returns of the Quant Tax Plan Direct-Growth are 117.83 per cent and the fund’s 3-year and 5-year returns are 30.95% and 24.63% respectively. The healthcare, financial, FMCG, communication, and metals sectors comprise the majority of the fund’s holdings. ITC Ltd., ICICI Bank Ltd., Bharti Airtel Ltd., State Bank of India, and ICICI Securities Ltd. are the fund’s top five holdings. The fund has an expense ratio of 0.50% and one can start SIP with a minimum amount of Rs 500 with no exit load.

BOI Axa Tax Advantage Direct-Growth Fund

The fund presently has Rs 453 crore in assets under management (AUM) and a NAV of Rs 97.88 as of June 21, 2021. The fund has returned 71.96 per cent in the last year, with returns of 18.44 per cent and 20.25 per cent in the previous three and five years, respectively. The fund has a 1.67 per cent expense ratio, which is higher than the category average, and the minimum SIP is Rs 500 with no exit load. The fund’s top equity sectors are chemicals, healthcare, financial services, and technology, with HDFC Bank, ICICI Bank, Infosys, Divi’s Laboratory Ltd., and Laurus Lab Ltd. as its top five holdings.

Mirae Asset Tax Saver Fund

Mirae Asset Tax Saver Fund Direct-Growth returns have been 70.47 per cent over the last year. It has returned 21.47% and 22.93% over the last 3-years and 5 years. The bulk of the capital in the fund is allocated across the financial, technology, energy, auto, and healthcare sectors. HDFC Bank Ltd., ICICI Bank Ltd., Infosys Ltd., Axis Bank Ltd., and Tata Consultancy Services Ltd. are the fund’s top five holdings. The fund presently has Rs 7,940 crore in assets under management (AUM) and a NAV of Rs 30.12 as of June 21, 2021. The fund has an expense ratio of 0.48% and the fund’s 1 to 5-year returns are higher than the category average returns.

Canara Robeco Equity Tax Saver Fund

Canara Robeco Equity Tax Saver Direct has a 1-year growth rate of 67.23 per cent. Over the previous three to five years, it has returned 20.77 per cent and 19.04 per cent, respectively. The fund has the equity sector allocation across the Financial, Technology, Construction, Automobile, Engineering sectors. Infosys Ltd., HDFC Bank Ltd., ICICI Bank Ltd., Larsen & Toubro Ltd., and Tata Consultancy Services Ltd. are among the top five holdings of the fund. As of June 21, 2021, the fund has Rs 2,227 crore in assets under management (AUM) and a NAV of Rs 109.31. The fund has a 0.87 per cent expense ratio and one can start a SIP with a minimum of Rs 500.

Best Tax Saver Funds In Terms of Returns

Conclusion

ELSS schemes have outperformed other Section 80C tax-saving investment choices such as PPF, ULIP, NSC, NPS and tax-saving bank FDs in terms of returns. The explanation for this is that, according to Value Research, Tax Saver Funds have delivered excellent 5-year average SIP returns of 21.46 per cent. When we compare this return to the most common tax-saving strategies listed above, we can discover that they have beaten them by a large percentage. Because ELSS funds have the most long-term wealth-building potential, they can be an effective instrument for attaining long-term financial objectives if you invest for at least 3 to 5 years. Since nobody can promise future success, examining historical returns can only demonstrate the performance of tax saver funds under varied market behaviour. For higher returns, you should invest in Equity Mutual Funds with a direct plan option. Because direct plans have a lower expense ratio than growth plans, as a result, they can provide better long-term returns if you stay invested for 5-years.

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

Dalmia Bharat

Motilal Oswal Retail Research has recommended buying the stock of Dalmia Bharat. The company is among the top five cement manufacturers in the country. The research firms sees a number of factors like sharp price hikes, capacity additions to boost financial performance.

“In the near term, supplies are expected to be impacted by logistic issues, which would support prices. We expect market share gains to continue, supported by 25% capacity expansion over the next year,” the Motilal Oswal Retail Research has said.

According to the firm, the plan to double capacity provides long-term volume growth visibility. Interestingly, Dalmia Bharat is also paying back debt, which should reduce interest costs.

“The company has repaid its gross debt of Rs 22.2 billion in FY21 from operating cash flows, working capital release, and the dilution of the disputed mutual fund units – which were credited back to the company in the last quarter. Despite the ongoing expansion, the balance sheet remains well under control,” the research firm has said.

“We remain positive on Dalmia Bharat and have given the price hike in eastern India and major expansions coming on board. Valuations are reasonable at 10.4x FY23E EV/EBITDA and EV/capacity of $112 per tonne. We reiterate Buy, with target price of Rs 1,905 per share (at 10 times FY23E EV/EBITDA),” Motilal Oswal Retail Research has said.

Shares of Dalmia Bharat were trading at Rs 1,831 on the BSE.

Maruti Suzuki

Emkay Global expects a strong recovery in passenger vehicle volumes due to easing of lockdowns, healthy order-book and improving macros and sees Maruti Suzuki among the key beneficiaries. The broking firm has set a target price of Rs 8,500 on the stock of Maruti Suzuki with a buy call.

“Maruti Suzuki customer base includes conservative customers who seek reliable products, better fuel efficiency, low maintenance costs, strong service/spares network and better resale values. To sustain share over medium term, Maruti Suzuki will also have to address the desirability factor. As the customers are upgrading to higher-priced vehicles (especially UVs), it is important for Maruti Suzuki to have successful launches in these categories. Media reports refer to upcoming products such as Jimny off-roader, mini SUV (larger Wagon R), small hatchback and jointly developed products with Toyota,” the firm has said.

Shares of Maruti were last seen trading at Rs 7159 on the NSE.

NTPC

Motilal Oswal Institutional Equities has placed a buy call on the stock of NTPC with a price target of Rs 145 in its latest report. Power major, NTPC recently reported a very strong set of quarterly numbers for the period ending March 31, 2021.

“NTPC has taken steps to improve its renewables footprint. The 3GW of renewable capacities are under construction and expected to be commissioned over the next two years. Moreover, even as the company gradually scales up on its renewables journey, we expect continued capitalization for its thermal projects to drive 12% growth in regulated equity over FY21-23E. We have a Buy rating on NTPC, with a DCF-based target price of Rs 145 on the stock,” the broking firm has said.

Disclaimer

The above stocks are based on the report of Motilal Oswal and Emkay Global. Investing in stocks are risky and investors should do their own research. The author, the brokerage firms or Greynium Information Technologies are 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. Please consult a professional advisor.

To establish their foothold in the market, Small Finance Banks began their operations by offering a higher rate on bank fixed deposits in comparison to most public run and private sector bank in the country.

Pointers to note if you are opening Fixed Deposit scheme with Small Finance Banks in India

1. Small Finance banks function as per the rules and norms laid down by the apex bank of the country i.e. RBI. But herein as the focus of these banks is primarily financial inclusion and they have a differentiated business, RBI came up with separate operating guidelines for them. Nonetheless other stipulations such as with respect to capital adequacy, CRR and SLR are to be adhered by these banks similar to commercial banks in the country. So, there are being administered and regulated at par with other private and public banking entities in the country.

2. Interest wise FDs at Small Finance Bank still offer a better rate with interest rate ranging between 5.6-6.75% for a 1 to 3 year tenure. In comparison, FDs at private and public sector banks offer a maximum of 5.3% for a similar tenure.

3. Deposits at Small Finance Banks similar to other banks in the country are insured by the DICGC or Deposit Insurance Credit Guarantee Corporation to the maximum of Rs. 5 lakh. So, as these term or fixed deposits at SFBs are also backed by an insurance of up to Rs. 5 lakh, investing in them shall be secure to the extent of insured amount.

1-Year FD Rates At Various Small Finance Banks

Small Finance Bank	New Interest rate for a 1-year FD	Senior citizen FD rates	Revised rate applicable from
Suryoday Small Finance Bank	6.5%	6.75%	Effective from June 21, 2021
Capital Small Finance Bank	6%	6.5%	June 3, 2021
Equitas Small Finance Bank	6.35%	6.85%	June 1, 2021
Fincare Small Finance Bank	5.6%	6.1%	May 17, 2021
Jana Small Finance Bank	6.25%	6.75%	May 7, 2021
Utkarsh Small Finance Bank	6.75%	7.25%	October 19, 2020

As can be analyzed from the table above, the maximum interest rate on a 1-year FD among Small Finance banks is offered by Utkarsh Finance Bank of 6.75% and similarly senior citizens are also able to fetch a better rate of over 7.25% per annum.

3-Year FD Rates At Various Small Finance Banks

Small Finance Bank	New Interest rate for a 3-year FD	Senior citizen FD rates	Revised rate applicable from
Suryoday Small Finance Bank	6.25%	6.5%	Effective from June 21, 2021
Capital Small Finance Bank	6%	6.5%	June 3, 2021
Equitas Small Finance Bank	6.35%	6.85%	June 1, 2021
Fincare Small Finance Bank	6.25%	6.75%	May 17, 2021
Jana Small Finance Bank	6.5%	7%	May 7, 2021
Utkarsh Small Finance Bank	6.75%	7.25%	October 19, 2020

Here for the FD tenure of 3 years also Utkarsh Small Finance Bank is topping the list with a return of 6.75%.

5-Year FD Rates At Various Small Finance Banks

Small Finance Bank	New Interest rate for a 5-year FD	Senior citizen FD rates	Revised rate applicable from
Suryoday Small Finance Bank	6.25%	6.5%	Effective from June 21, 2021
Capital Small Finance Bank	6%	6.5%	June 3, 2021
Equitas Small Finance Bank	6.25%	6.75%	June 1, 2021
Fincare Small Finance Bank	6%	6.5%	May 17, 2021
Jana Small Finance Bank	6.5%	7%	May 7, 2021
Utkarsh Small Finance Bank	6.75%	7.25%	October 19, 2020

Here it is worth mentioning that Suryoday Finance Bank has brought about a steepest cut for FDs of 5 year tenure as earlier a 5-year FD with the bank earned 7.25% return p.a.

Special FD schemes of Small Finance Bank

Also, these small finance banks have rolled out some special tenure FDs that carry a slightly better rate. Say for instance, Capital Small Finance Bank offers 900 days FD that offers the highest rate of 6.25%. Likewise, Equitas Small Finance Bank offers the highest rate of 6.5% on 888 days deposit. Notably, 5-years 1 day to 10 years FD at the bank also offers the same rate i.e. 6.5%.

Utkarsh Small Finance Bank’s 700 days FD is the only one offering 7% return and for senior citizens the return on it is 7.5%.

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