Category: Personal Finance

Indiabulls Housing Finance Q2 net profit down 11% to Rs 286 cr, BFSI News, ET BFSI

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Mumbai, Mortgage financier Indiabulls Housing Finance on Thursday reported an 11 per cent dip in its net profit at Rs 286 crore in the quarter ended September due to a decline in its loan book. The lender’s profit after tax stood at Rs 323 crore in the same quarter of the previous fiscal.

Its deputy managing director Ashwini Kumar Hooda attributed the fall in profit to a 12 per cent decrease in the loan book in the second quarter of the financial year 2021-22 compared to the year-ago period.

It disbursed retail loans of Rs 325 crore in the month of September 2021 through its co-lending tie-ups, the lender said in a release.

This will scale up to Rs 500 crore of monthly disbursals by December 2021 and Rs 800 crore of monthly disbursals by March 2022, it said.

The company is on track to disburse Rs 1,000 crore of retail loans through co-lending in the third quarter of the financial year 2021-22. It has a total of seven co-lending partners- HDFC Ltd., Central Bank of India, Yes Bank, RBL Bank, Canara Bank, Punjab &Sind Bank, and Indian Bank.

Total loans disbursed as of September 30, 2021, under the Emergency Credit Line Guarantee Scheme (ECLGS) stood at Rs 176 crore, amounting to only 0.27 per cent of the loan book.

Gross NPAs have stood to 2.69 per cent in the second quarter of the financial year 2021-22 from 2.21 per cent in the previous quarter of the year-ago period.

“Balance sheet has been strengthened by shoring up provisions on the balance sheet to Rs 3,153 crore, which is 4x times of the regulatory requirement and equivalent to a healthy 4.9 per cent of our loan book and 152 per cent of Gross NPAs,” the release said.

Stage 3 provision coverage ratio stood at 43 per cent of gross NPAs (Non-performing assets).

The lender restructured loans of Rs 96.7 core, equivalent to 0.15 per cent of its loan book, under the Reserve Bank of India’s Restructuring Frameworks 1.0 and 2.0 combined.

In H1 of the financial year 2021-22, it has raised monies of Rs 12,186 crore across instruments and tenors. The company also raised Rs 792 crore through NCDs (non convertible debentures) in September 2021.

Hooda said the lender is looking to raise around Rs 10,000 crore through bank borrowings and NCDs during the second half of the current financial year.

The company’s scrip closed at Rs 237 apiece, down 3.42 per cent on BSE. PTI HV SHW SHW



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Pension funds holding distressed Srei’s bonds in a spot, BFSI News, ET BFSI

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Pension funds at several entities, including Punjab National Bank (PNB) and Food Corporation of India, face the risk of losses on their respective exposures to about ₹4,800 crore of bonds issued by two companies of the Kolkata-based distressed financier Srei Group, which are now undergoing a central bank-monitored insolvency process.

Other funds likely affected include the MTNL Gratuity Trust, UltraTech CEMCO PF and the Rajasthan Vidyut Karamchari Gratuity Trust, people familiar with the matter told ET.

“Currently, bondholders are in talks with trustees as they figure out their claims for the resolution process,” said a person involved in the matter.

Lenders to Srei Group are expected to vote on a group insolvency plan on November 17.

The two Srei group companies – Srei Infrastructure Finance and Srei Equipment Finance – have an outstanding of ₹4,730 crore in bonds. These include secured and unsecured non-convertible debentures. Total market borrowings of the group, taken to the National Company Law Tribunal (NCLT) by the central bank, were ₹30,783 crore at the end of FY21.

Meanwhile, ET has reviewed a list of two dozen investors that had bought into the bonds issued by Srei Group. Rajasthan Vidyut Karamchari subscribed through three sets of papers.

Other Investors
To be sure, the investments might not be substantial for several of the pension funds cited above as there is no major single investor in these bonds. Subscribers also include several wealthy individuals and HUF (Hindu Undivided Family) entities.

MTNL, PNB, UltraTech, Food Corporation and Rajasthan Vidyut did not respond to ET’s mailed queries.

Srei’s total liabilities are through a combination of loans, bonds and external commercial borrowings. The Indian Registrar of Shipping Staff Provident Fund and Caledonian Jute Mills Workers’ PF are also invested in these bonds.

Besides, small companies such as Sadbhav Engineering, Suruchi Foods, Maharashtra Enviro Power and YMS Finance are among other investors. They could not be contacted immediately for comments.

State Bank of India (SBI), Axis Bank, Bank of Baroda, Bank of Maharashtra, Canara Bank, Punjab National Bank, Uco Bank and Union Bank of India are major lenders to the group. SBI is said to have the largest share of lending.

Under group insolvency, a joint resolution plan will be drawn for both SREI Infrastructure Finance and SREI Equipment Finance. Both were admitted for corporate insolvency and resolution process last month on central bank orders.

The committee of creditors (CoC) first met on November 2 when the Reserve Bank of India (RBI)-appointed administrator, Rajneesh Sharma, informed the lenders about the finances of the two debt-laden companies.



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Millennials on the fence about cryptocurrency. Is the risk worth it? Here’s what they think, BFSI News, ET BFSI

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– Anushka Sengupta

Swapnil Ganguly, a 24-year-old software development engineer at Amazon, said he will not invest in cryptocurrency.

“I would rather invest in the share market. No action can be taken as well because cryptocurrency is not regulated in India. It’s too risky,” Ganguly said.

Swapnil Ganguly

Contrary to popular belief of millennials having a larger risk appetite, ETBFSI has found that they seek security in their investments.

“My friend was recently scammed by a crypto trader. These people steal our money by giving false crypto tokens at a cheaper rate. You realise they are fake only when you sell those tokens for cash,” Ganguly said, soured by the incident.

This holds true even for the risk-takers. These millennials also want cryptocurrency to be regulated, and expect it to be one of the most-opted investment options.

Shreyashi Haldar
Shreyashi Haldar

“I think all investments carry some risks, crypto leading the list, but we have a larger risk appetite. I have also invested in cryptocurrency, but I would prefer it if the government regulates it, so that the privacy concerns are addressed. With talks of a central bank digital currency, I feel crypto can become very significant,” said Shreyashi Haldar, a final year MBA student at NIBM Pune.

Apart from security, some also expressed concerns about the affordability of crypto tokens. Some risk-taker millennials, who want to invest in cryptocurrency, said that they fall short of funds to invest in the secure ones, like Bitcoin, which use the proof of work or proof of stake validation techniques.

Shiba Inu
Shiba Inu

“Popular and secure cryptos like Bitcoin, Shiba Inu, Dogecoin, Ethereum, etc come with less risk at a very high price. Those who are looking for short term investments like me can’t afford these. I invested in XRP through Ripple, which is a cheaper option, but I did not gain much out of it,” said Mahesh Vishnoi, a customer associate at Tech Mahindra.

Cheaper cryptocurrencies do not use such systems, leading to the possibility of theft and fraudulent transactions.

Cryptocurrency is not regulated in India yet. As recently as Wednesday, Shaktikanta Das, governor of Reserve Bank of India, reiterated the risks of cryptocurrency, and said that the numbers, in terms of adoption rate and investments, were exaggerated. The government is also expected to table a Bill on cryptocurrency in the Winter Session of the Parliament, starting Nov 29.

For more stories on cryptocurrency, click here.



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This Pesticides And Agro Chemicals Company To Soon Pay A Special Dividend Of Rs. 125

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Investment

oi-Roshni Agarwal

|

Dividend is a passive source of income that is always chased upon by investors for better gains other than stock’s appreciation. There are three type of dividends-interim, final and special dividend. Here we shall discuss about one such company that will soon be paying special dividend of Rs. 125. Special dividend is recommended by board of the company and approved by its shareholders in the Annual General Meeting (AGM).

This Pesticides And Agro Chemicals Co. To Soon Pay A Special Dividend Of Rs. 125

This Pesticides And Agro Chemicals Company To Soon Pay A Special Dividend Of Rs. 125

The stock of Bayer Crop Science turned ex-date today i.e. November 11, 2021 and usually the dividend is received or payment is received by eligible shareholders within 30 days of its approval.

About the company:

Bayer Crop Science is a mid cap company that has capabilities in the areas of biotechnology, crop protection and data sciences. The company manufactures crop protection products such as herbicides, insecticides, fungicides and seed treatment, non agricultural pest-control, seeds and plant biotechnology. The company’s latest m-cap stood at Rs. 21,356 crore.

In the last September ended quarter of FY22, the firm total income from operations at Rs. 1365.1 crore and consequently its net profit for the period came in at Rs. 154.1 crore lower than Rs. 254 crore reported in the previous quarter. Also, the company has a history of being a debt free enterprise.

Bayer Crop Science dividend history

Dividend ex-date Type Dividend in Rs.
27th July 2021 Final 25
27th July 2020 Final 25
23rd June 2020 Interim 90
10th July 2019 Final 18
6th August 2018 Final 18



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Buy This Retail Stock With A Target Price of Rs 5120 Says ICICI Direct

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Q2FY22 results of V-Mart

According to the brokerage “The company exhibited strong revenue traction with V-Mart recording 100% revenue recovery on Q2FY20 base (excluding Unlimited format).”

“On a favourable base, revenue grew 93% YoY to Rs 338 crore. Newly acquired 74 Unlimited Stores in September contributed 6.9% to sales. Better gross margins and positive operating leverage resulted in V-Mart reporting EBITDA margins of 6.1% vs. a loss of Rs 0.4 crore in Q2FY21. The base quarter had a higher other income (Rs 15 crore in Q2FY21 vs. Rs 4 crore in Q2FY22) owing to rental waivers. Subsequently, net loss was at Rs 19.4 crore vs. Rs 25.6 crore in Q2FY21” said ICICI Direct in its research report.

Key triggers for future price performance of V-Mart according to ICICI Direct

Key triggers for future price performance of V-Mart according to ICICI Direct

  • We like V-Mart as a structural long term story to play the unorganised to modern retail shift. We pencil in revenue, EBITDA CAGR of 46%, 51%, respectively, in FY21-24E (on favourable base).
  • The recent acquisition of ‘Unlimited’ store brand (74 stores) will enable V-Mart to cater to the fashion needs in western and southern markets of India (where V-Mart has minimal presence).
  • We expect total retail space to increase at ~19% CAGR in FY21-24E with a total area of 3.8 million square feet by FY24E (excluding Unlimited stores).
  • Robust liquidity position (Rs 155 crore as on Q2FY22) to fund store capex requirements and set up new integrated warehousing facility.

Buy V-Mart with a target price of Rs 5120

Buy V-Mart with a target price of Rs 5120

According to the brokerage “V-Mart, having over the years built its fortress in non-tier I cities is well poised to capture market share in the growing ~| 2.5 trillion value fashion industry. The company, over the last two years, has expanded its reach in the interior parts of the country by opening stores in tier IV cities (~12% of total stores).”

ICICI Direct has said in its research report that “V-Mart has been a consistent compounder with stock price appreciating at 45% CAGR in the last five years. We maintain BUY recommendation on the stock. We value V-Mart at Rs 5120 i.e. 22x FY24E EV/EBITDA.”

Disclaimer

Disclaimer

The above stock is picked from the brokerage report of ICICI Direct. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution. Greynium Information Technologies, the author, and the brokerage house are not liable for any losses caused as a result of decisions based on the article.



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Banks, auto stocks drag Indian shares as inflation fears weigh, BFSI News, ET BFSI

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BENGALURU – Indian shares ended lower on Thursday, weighed down by losses in banking and automobile stocks, with investor sentiment also soured by broad worries about inflation triggered by a big jump in U.S. consumer prices.

The blue chip NSE Nifty 50 index closed down 0.80% at 17,873.60, while the benchmark S&P BSE Sensex lost 0.72% to end at 59,919.69.

The markets have struggled to build on momentum from a slight festival-led rebound seen last week following October’s correction, with the main indexes on track to end lower for the current week.

Data on Wednesday showing U.S. consumer prices surged at the fastest pace since 1990 last month reverberated across global markets, driving a slide in both Asian and European shares.

On investors’ radar is India’s October retail inflation reading on Friday, with a Reuters poll of 43 economists forecasting inflation likely hovered near a six-month low.

In Mumbai trading, the Nifty Bank Index fell 1.19% to record its fourth straight session of losses. State-run lender State Bank of India was down 2.8% and was among the top percentage losers on the Nifty 50.

The Nifty Auto Index ended 1.18% lower, snapping a four-session streak of gains. Eicher Motors and Tata Motors shed more than 1.4% each.

Among individual stocks, shares of Zomato added 3.6% after the company posted quarterly revenue that more than doubled as orders on its food delivery business zoomed.

Consumer goods maker Godrej Consumer Products fell as much as 3.2% after missing September-quarter profit estimates.

Conglomerate Piramal Enterprises was down 3.9% after its quarterly profit, revenue fell.



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Shriram Capital appoints Ajay Thomas John as Chief Digital Officer, BFSI News, ET BFSI

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Shriram Capital Ltd, a financial conglomerate, today appointed Ajay Thomas John as their Chief Digital Officer.

D V Ravi, MD & CEO, Shriram Capital said, “ As we lay special focus on creating value through the smart use of digital tools, platforms, AI / ML, and other emerging technologies, I believe this will lead to an overall robust digital ecosystem across the companies”

Ajay, an MBA in Finance from Anna University, has 17 years of experience in the financial services industry. Before joining Shriram, he worked at Bajaj Finance Ltd, HDFC Bank, CitiFinancial and fintech startups.

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3 Top Rated Balanced Advantage Funds By Morning Star For SIP Investment

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1. Edelweiss Balanced Advantage Fund:

The fund has over 70 percent investment into Indian stocks and has over 20 percent investment into debt securities. In comparison to the Nifty benchmark, the fund over a 1-year period has outperformed with returns of 33 percent return.

The top stocks in its portfolio include ICICI Bank, HDFC Bank, Infosys, RIL, Bharti Airtel among others.

Notably, the scheme has been rated 5-star by Value Research also. Rs. 6 lakh worth of investment via the monthly SIP of Rs. 10000 in 5 years has grown in value to Rs. 9.43 lakh. SIP in the scheme can be started for Rs. 500.

2. Nippon India Balanced Advantage Fund Direct Plan

2. Nippon India Balanced Advantage Fund Direct Plan

This fund has 65 percent exposure into equities and 25 percent into Debt. Over a 1-year period, the stock has underperformed the Nifty index with return to the tune of 28.5 percent versus Nifty returns of 32 percent.

The mutual fund’s top stock holdings include ICICI Bank, HDFC Bank, Infosys, RIL, HUL, SBI and ITC among others.

With Rs. 10000 per month SIP, the investment in 5 years time has grown to Rs. 8.55 lakh. SIP into the scheme can be started for as less as just Rs. 100.

3. Union Balanced Advantage Fund Direct Growth:

3. Union Balanced Advantage Fund Direct Growth:

The fund’s 66 percent corpus is deployed into stocks while close to 20 percent is put into debt. The fund’s 1-year return has been at 18 percent. Top stock holdings of the fund include HDFC Bank, ICICI Bank, RIL, Infosys, TCS, HDFC, Bharti Airtel among others.

The mutual fund scheme is also ranked by Value Research Online as 4-star rated scheme. Minimum SIP amount is Rs. 2000.

In 3 years time, Rs. 10000 SIP on a per month basis i.e. Rs. 3.6 lakh has grown to Rs. 4.71 lakh.

Balanced Advantage schemes 1-Yr. SIP Annualised return 3-Yr. SIP Annualised return 5-Yr. SIP Annualised return
Edelweiss Balanced Advantage Fund 27.41% 24.62% 18.39%
Nippon India Balanced Advantage Fund Direct Plan
23.18% 18.96% 14.34%
Union Balanced Advantage Fund Direct Growth (note here SIP returns are not given)
18% 15.57%

Should you be investing in Balanced Advantage schemes?

Should you be investing in Balanced Advantage schemes?

The dynamic asset or balanced advantage scheme can be the best way out for those facing the tricky situation of redeeming funds at current market highs. Instead to resorting to such a take, investors shall be better off investing in balanced advantage schemes. The allocation herein to stocks is based on the market conditions i.e. exposure to stocks is increased when markets trend higher while it is cut down in an otherwise situation. So, with exposure to both debt and stocks, downside risk as well as volatility over the longer tenure is curtailed to just half.

GoodReturns.in



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‘Buy’ This Energy Stock At ~45.7% Return In 1 Year, As Recommended By HDFC Securities

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Target Price

The Current Market Price (CMP) of Indraprastha Gas (IGL) is Rs. 494. The brokerage firm sets a Target Price for the stock at Rs. 720, indicating a 46%, with a Target Period of 12 months (1 year). IGL’s stock performance grew (absolute) by 16.7% upside in the last 12 months.

Stock Outlook
Current Market Price (CMP) Rs. 494
Target Price Rs. 720
1 year return ~46%

Company performance

Company performance

Indraprastha Gas’s Blended volume stood at 7.2mmscmd (+31.6% YoY, +36.1% QoQ). While CNG (+35.4% YoY), industrial/commercial (+26.1% YoY) and trading volumes (+ 34.6% YoY) remained robust, but domestic PNG (+3.9% YoY) volume saw a QoQ fall of 6.4%. Overall PNG volume has increased by 22% YoY, 15.9% QoQ. HDFC Securities estimate that the average CNG volume of the company will increase by 33% YoY in FY23E, while total volume is estimated to increase by 29% YoY.

Comments by HDFC Securities

Comments by HDFC Securities

According to HDFC Securities, “Sales volume drives profitability. We maintain our BUY recommendation on Indraprastha Gas (IGL) with a target price of Rs. 720, based on robust volume growth at ~18% CAGR over FY21-24E, regulatory support from the government to curb pollution in the Delhi/NCR region.” The firm added, because of increased sales volume and higher than expected other income, IGL’s Q2FY22 EBITDA has been 19% above their estimate, while PAT was 36% above.

About the company

About the company

Incorporated in 1998, IGL took over Delhi City Gas Distribution Project in 1999 from GAIL (India) Limited (Formerly Gas Authority of India Limited). IGL plans to provide natural gas in the entire capital region. The company is augmenting its infrastructure to meet the increasing demand of CNG arising out of a growing number of CNG vehicles. IGL is already operating on the PNG front.

Disclaimer

Disclaimer

The above stock has been picked from the brokerage report of HDFC Securities. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution. Greynium Information Technologies, the author, and the brokerage house are not liable for any losses caused as a result of decisions based on the article.



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Should Investors Buy Nykaa Shares After 100% Gains On IPO Listing Day?

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Investment

oi-Roshni Agarwal

|

Against the IPO issue price of Rs. 1125, Nykaa on its listing day nearly doubled investors money and hit a price of Rs. 2248 per share in the previous session. Post the listing in trade on November 11, 2021, the stock of Nykaa primarily given the profit booking in the stock tumbled to day’s low price of Rs. 2043.75, which is an over 7 percent fall from the previous day’s closing price of Rs. 2205.80 per share.

Should Investors Buy Nykaa Shares After 100% Gains On IPO Listing Day?

Should Investors Buy Nykaa Shares After 100% Gains On IPO Listing Day?

Does the current decline in Nykaa stock price offers an opportune time to buy into the stock?

Motilal Oswal’s AVP Retail Research believes Nykaa’s key strengths lies in its inventory-led business model for beauty and personal care (BPC) segment, which allows it to offer authentication for all its products and ensures availability and efficient distribution. The online BPC market is highly underpenetrated at just 8% in India and is growing at a very fast pace of 60% p.a. over CY16-20. Given 35% market share of Nykaa in online BPC, we believe Nykaa is rightly placed to tap the high growth digital/online penetration in BPC/Fashion market. We like Nykaa given its leadership position in online BPC market, customer centric approach, profitable tech platform and capital efficient business model

Now given the strong fundamental, the stock is certainly a buy and here we would point out what analysts suggest on Nykaa counter.

Accumulation at current levels suggested on Nykaa stock

Profit booking in the counter of Nykaa is expected to prolong for some more time and it can take the scrip to price levels between Rs. 2000-1800 levels. There is suggested that investors can ‘Accumulate’ Nykaa scrip from here on in a calibrated way.

“Valuation could be a concern for Nykaa shares after a big listing gain. However, Rs. 2000 could act as a support level in the near term. It is difficult to buy after a big gain at opening however fresh investors can accumulate in parts where they can invest 25 per cent at current levels while if it witnesses any correction towards Rs.1800 level then they can add more”- Santosh Meena, Head of Research, Swastika Investmart Ltd is quoted as saying in a report.

For other investors who betted on the scrip for listing gains, they can put a stop loss of Rs. 1950, while still aggressive investor class can continue to ‘Hold’ the scrip for long term.

Target price for Nykaa

The stock of Nykaa is seen to hit a target price of Rs. 3600 in two year time and investor are suggested to buy the scrip at Rs. 1900 levels for the period with a stop loss maintained at Rs. 1770- says GCL Securities -Ravi Singhal.

GoodReturns.in

Story first published: Thursday, November 11, 2021, 13:09 [IST]



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