Category: Personal Finance

Finolex Cables

Current market price	Rs 583.95
Target	Rs 735
Gains	26.00%

Finolex Cables Ltd is India’s largest and leading manufacturer of electrical and telecommunication cables. Besides a wide variety of Wires & Cables, the Company is also manufacturing lighting products, electrical accessories, switchgear, fans and water heaters.

According to Sharekhan, Finolex Cables reported strong out performance on both revenue and OPM fronts in Q2FY2022. Working capital days reduced q-o-q, while cash rose.

Target price on the stock 26% higher than current levels

“We believe the company is expected to see healthy growth to continue, led by pick up in real estate, auto sector, and traction in FMEG products. Further, COVID-19 led impact on unorganised players allows the company to increase its market share. Finolex’s debt-free balance sheet and net cash position provide comfort in the present environment.

Further, the government’s push for optical fibre cable will aid business and boost demand for telecom cables for the company. The stock is trading at a valuation of 18.5 times P/E its FY2024E earnings. With improving growth visibility, we retain our Buy rating on the stock with a revised SOTP-based target price of Rs. 734 (17.5x its P/E on FY2024E standalone EPS and 20% holding company discount for its stake in Finolex Industries),” the brokerage has said.

Va Tech Wabag Ltd

Current market price	Rs 356
Target	Rs 435
Gains	22.00%

Sharekhan sees an upside of at least 22% on the stock of Va Tech Wabag Ltd and has recommended to buy the stock. The company is among the leading players in providing water solutions like drinking water treatment, water desalination, waste water treatment, operation and maintenance, water reclamation etc.

According to Sharekhan Va Tech Wabag reported broadly in-line consolidated revenue at Rs. 684 crore, up 12.4% y-o-y, as the company increased net debt and reduced payables to expedite project execution and protect operating margins (rise in commodity prices along with COVID-19 led project delays).

Price target of Rs 435, “Buy the stock”, says Sharekhan

According to the brokerage firm, Va Tech Wabag is on a strong earnings growth trajectory going ahead with concerns of high leverage, led by increasing working capital now behind it.

“A well-funded strong order book provides comfort on execution and collections going ahead. Further, the government’s focus is expected to remain on water-related investments, providing healthy order intake tailwinds for the company going ahead. At the CMP, the stock trades at P/E of 10x its FY2024E earnings, which we believe is attractive considering its strong net earnings growth outlook and strengthened balance sheet. Hence, we maintain Buy with an unchanged price target of Rs. 435,” the brokerage has said.

Disclaimer

Investing in equities poses risks. 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 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

Axis Bluechip Fund

1-year returns	3-year returns	5-year returns
35.69%	22.22%	20.64%

Returns from the Axis Bluechip Fund have been pretty good. The 5-year returns have been 20.64% on an annualized basis. This fund largely invests in largecap stocks and about 67% of the portfolio is invested in top 10 stocks of the portfolio.

Among the top holdings of the company include names like Bajaj finance, HDFC Bank, ICICI Bank, Infosys and Avenues Supermarts. One can start an SIP with a small investment of Rs 500 per month. Investors may note that the Sensex at near 60,000 points is expensive and hence caution is advised when investing in mutual funds.

Canara Robeco Bluechip Equity Fund

1-year returns	3-year returns	5-year returns
37.37%	22.46%	19.61%

This fund has been rated 5-star by Morningstar and Value Research. The returns are pretty good thanks to the huge upsurge in stocks over the last 1-year. The fund has holdings of 5.6% in cash and the balance of 94.4% is invested in largecap stocks. ICICI Bank, HDFC and Infosys remain among the top holdings of the Canara Robeco Bluechip Equity Fund.

An SIP can be started in the fund with an investment as small as Rs 1,000. Mutual Funds tend to generate returns in the long-term and hence investors are advised to stay invested for the long-term only.

Kotak Bluechip Fund

1-year returns	3-year returns	5-year returns
41.47%	21.33%	17.32%

Unlike the other two peers listed above, this fund has been rated as 4-star by Morningstar. An SIP can be started in this fund with a small sum of Rs 1,000. The returns have been very good, especially over the short term period of 1-year. At the moment, we suggest that you invest small amounts by way of SIPs and should the market fall, you can invest larger amounts by way of SIPs, given that the markets are expensive.

LIC MF Largecap Fund

1-year returns	3-year returns	5-year returns
37.88%	20.00%	16.32%

This fund like the Kotak Bluechip Fund has been rated as 4-star by CRISIL. The returns are pretty decent in the short and long term even on an annualized basis. The fund has assets under management that are not really large and around Rs 674 crores only. Among the holdings of the company include names like ICICI Bank, Infosys, HDFC Bank and Avenue Supermarts.

An SIP in the fund can be started with Rs 1,000. Investors with a long term purview of things can invest in the above mentioned funds.

Disclaimer

Investing in mutual funds poses risks. 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 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

What is ex-bonus date?

To be eligible for bonus shares, record date and ex-bonus date matter. Record date is the cut-off date announced by the company and it is precisely on this day that the company decides the eligibility of shareholders for the bonus shares. To be eligible for bonus shares, shareholders should be owing the stock before this date. Ex-date on the other hand is a day preceding the record date set by the company and to qualify for receiving bonus shares, shares of the company must be bought before the ex-date.

So, as you might have figured out now why ex-bonus date holds relevance, we will straight away move to the stock:

Indo US Bio-Tech

Headquartered in Ahmedabad, Gujarat, Indo US Bio-Tech is a specialized agriculture seed company. The company is into the manufacturing of vegetables, pulses, oils, and spices, as well as cereals.

In an exchange filing on November 3, 2021, the company informed that the proposal of Issue of 12,13,598 Equity Shares (‘the Bonus Shares’) of the Company of Re.10/- each (Rupee Ten only) at par, to be allotted, distributed and credited as fully paid-up to and amongst the members in the proportion of 1 new equity shares for every 5 existing fully paid equity shares has been approved by the company’s shareholders.

For the purpose of determining the eligibility of shareholders for the bonus shares, the record rate is set at November 30, 2021, while the stock shall turn ex-bonus on November 29, 2021.

Decent financials and key technical parameters make the stock attractive

Talking about its financials, over the past 5 years, the company’s revenue surged 63.3 percent from Rs 24.6 crore in FY2017 to Rs. 40.13 crore in Fy21. PAT climbed 12.75 times during the similar period to Rs. 5.1 crore in the FY 2021 as against Rs. 0.4 crore in FY17. On a YTD basis, the stock has generated 131%, while 1 year return is 98 percent. Promoters have been increasing their stake in the company over the last 2 years.

The scrip looks promising considering decent financials and key technical parameters such as RSI, momentum, and 10-day/20-day/30-day/50-day/100-day/200-day EMA, barring MACD.

Disclaimer:

Stock market investments are risky, here we have just summarised a stock that will be issuing bonus shares, readers should not construe it to be an investment advice in the scrip.

GoodReturns.in

Taxes

oi-Vipul Das

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Published: Thursday, November 18, 2021, 15:44 [IST]

The Income Tax Department has recently rolled out the new Annual Information Statement (AIS) on its compliance Portal which provides a comprehensive view of information to a taxpayer with a facility to capture online feedback. The new AIS includes additional information relating to interest, dividend, securities transactions, mutual fund transactions, foreign remittance information, etc. As a result, the Income Tax Department has issued some dos and don’ts for the convenience of taxpayers. Through a Tweet, the department has reported that “Caveat! There are some Do’s & Don’ts which the taxpayer must follow to have a seamless experience in the AIS utility.”

Do’s

• Use the latest version of the AIS utility.
• Give feedback on the information displayed in AIS.
• Check your TIS to confirm the values used for pre-filing of return.
• View your AIS regularly.
• Use the AIS utility to view AIS and provide feedback if the transactions count is high.

Don’ts

• Don’t use the old version of AIS JSON for preparing feedback through utility.
• Don’t provide incorrect feedback on the AIS information.
• Don’t share your e-filing credentials with anyone.

Caveat!

There are some Do’s & Don’t’s which the taxpayer must follow to have a seamless experience in the AIS utility.
Pl check the infographic given below.

Click on link ‘AIS’ under ‘Services’ tab on https://t.co/GYvO3n9wMf #AIS #TaxPayerInformation #EaseOfCompliance pic.twitter.com/2177eGJ02k

— Income Tax India (@IncomeTaxIndia) November 16, 2021

The new AIS can be accessed by clicking on the link “Annual Information Statement (AIS)” under the “Services” tab on the new Income tax e-filing portal (https://www.incometax.gov.in).

A new facility has been made available for the taxpayer to offer online feedback if they believe the information is erroneous, or pertains to some other person/year, or is duplicate. For the same, the Income Tax Department through a recent Tweet has said that “Types of Feedback: Taxpayers may give feedback on the accuracy of the info displayed, modify information value & also give customized feedback on an info category. Click on link ‘AIS’ under ‘Services’ tab on http://incometax.gov.in.”

To know more in brief about the new AIS and if want to know how to access it on the e-Filing portal, then please click here.

Story first published: Thursday, November 18, 2021, 15:44 [IST]