No HC relief for Tatas on use of their trademark as crypto coin, BFSI News, ET BFSI

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Bitcoin may be a household name today, but there are various types of cryptocurrencies that exist. Ever heard of a cryptocurrency bearing the trademarks ‘Tata coin’ or ‘$Tata’?

Tata Sons, the holding company of the Tata Group, was unsuccessful in its bid to seek a permanent injunction from the Delhi high court restraining Hakunamatata Tata Founders and others from using the trademark ‘Tata’ as part of the name under which the cryptocurrency was made available to the public or as part of their corporate or domain name.

The domain names tatabonus.com and hakunamatata.finance that enabled the purchase and sale of the ‘Tata’ cryptocurrency were set up in June and May of 2021 respectively. The reason Tata Sons could not succeed is because it could not prove to the satisfaction of the court that the foreign parties (the defendants) intended to target India as a customer base.

No HC relief for Tatas on use of their trademark as crypto coinThe defendants in this lawsuit, filed by Tata Sons with the Delhi high court, were companies based in the US and the UK with no India presence. They were located outside the sovereign borders of India and statutorily outside the reach of the Trade Marks Act, 1999 and the Code of Civil Procedure, 1908. In this backdrop, the “intention to target India as a customer base was of paramount importance” for Tata Sons to make its case.

“The mere fact that the defendants’ cryptocurrency can be purchased by customers located in India and that, as a result, the plaintiff’s brand value may be diluted, even seen cumulatively, cannot in my view justify this court interfering with the defendants’ activities, or with its brand or mark,” held Justice C Hari Shankar.

The festive season can throw all your general perceptions about media ROI out of the window…

Apparently, the defendants’ cryptocurrency could be purchased — using the QR Code and the methodology indicated on the defendants’ website — by a customer located anywhere in the world. This factor therefore, too, cannot indicate any conscious targeting of the Indian customer base by the defendants. Nor do the websites or social media accounts prove any intent to target customers covered by the high court’s jurisdiction. “If at all they target customers, they target customers across the world,” the judge observed.

Tata Sons didn’t respond to an emailed query on the issue. Sources told TOI that Tata Sons is considering to pursue this case in the UK court.

Watch BE+ with Ambi Parameswaran: In conversation with industry leaders like Jasneet Bachal, Harish Narayanan, Deepali Naair, Siddhesh Joglekar and more



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Shopify survey, BFSI News, ET BFSI

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Kruthikaa Lakshman

Contactless payments, especially UPI, is gaining traction this Diwali. Nearly 50% of festive shoppers said that they preferred to process payments via UPI as
opposed to any other form, a survey by e-commerce platform Shopify said.

The survey found that the preference for UPI remains consistent across both, online and offline shopping experiences.

The COVID-19 pandemic has had a lot to do with these trends, the survey said. Though the experience that predates the festival is anticipated by many, the
convenience and safety of online shopping has persisted by 76.9% of the shoppers this festive season, it added.

Shopify India released “The Festive Shopping Outlook Report 2021”, measuring consumer trends in the last month, in time for Diwali. Trends have shown that the festive shoppers who would traditionally begin buying for the season, a month in advance hadn’t done so this year.

With mobile phones and internet access to non-metro shoppers, more and more people were seen opting for the digital medium. Online shopping is prevalent after the pandemic has increased to larger areas of the country, according to the report.

60% shoppers use digital payments multiple times a week for festive season shopping: Survey

Contactless payment using radio frequency identification (RFID) or near field communication (NFC) is also constantly improving. The National Payments Corporation of India (NPCI) recently partnered with YES Bank to launch RuPay On-the-Go contactless payments solutions, which is further pushing shoppers to opt for contactless payments, the survey added.

Further, the survey said that the digital payments platform has been opened by Google Pay for use in contactless UPI patents as well.

In terms of what shoppers shopped for during the season, the survey finds that gold and precious metal jewellery, which have been traditional festive gifting favorites, seem to have fallen out of favor this year.

This year, most shoppers were seen investing in tech gadgets. Electronic gadgets, according to the survey, are all set to command maximum consumer gifting budgets with close to 42% respondents showcasing increased propensity towards it.



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SBI Q2 earnings: State Bank of India’s profit soars 67% as provisions slide

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Slippages in Q2FY22 stood at Rs 4,176 crore, as against Rs 15,666 crore in the June quarter and the slippage ratio was 0.66% for the quarter.

State Bank of India’s (SBI) standalone net profit rose 67% year-on-year (y-o-y) to Rs 7,627 crore in Q2FY22 driven by an improvement in asset quality and a sharp drop in provisions. Dinesh Khara, chairman of SBI, said that after the Covid second wave receded, the asset quality outcomes in the September quarter turned out to be quite encouraging.

“The first quarter saw an elevated level of fresh slippages as collections were severely impacted due to restrictions on mobility and concerns around health and safety of our staff as well as customers. However, our ground level forces have rallied back in the second quarter,” Khara said.

Slippages in Q2FY22 stood at Rs 4,176 crore, as against Rs 15,666 crore in the June quarter and the slippage ratio was 0.66% for the quarter. Provisions dropped 98% y-o-y to Rs 189 crore and the credit cost stood at 0.43%. The gross non-performing asset (NPA) ratio fell 42 basis points (bps) sequentially to 4.9% and the net NPA ratio was down 25 bps at 1.52%. SBI’s total restructured book for resolution of Covid-related stress stood at Rs 30,312 crore, accounting for 1.2% of its loan book.

Khara said that loans which in Q1 had turned delinquent in the home loan and Xpress credit personal loan segments saw a pullback in Q2. In the small and medium enterprises (SME) segment, the bank was able to pull back or restructure loans as per the revised guidelines. “With the economic activity coming back, cash flows are restored and we are in a position to see better behaviour as far as borrowers are concerned. No major concerns are there related to asset quality because the underwriting has improved significantly and the collection machinery on the ground has become activated very well,” he added.

SBI’s net interest income (NII), or the difference between interest earned and expended, rose 10.7% y-o-y to Rs 31,184 crore. The net interest margin (NIM) rose 17 bps sequentially to 3.09%.

The bank’s gross advances grew 6.17% y-o-y to Rs 25.31 lakh crore as on September 30, 2021. Retail loans grew 15.2% y-o-y, while the corporate loan book shrank 4%. Khara said that working capital limits for large corporates are unutilised to the extent of 50%. However, SBI has a pipeline of Rs 1.15 lakh crore and it expects that term loans to the tune of Rs 2.25 lakh crore will be availed by companies. Sanctions worth Rs 4.6 lakh crore are still waiting to be availed, he said.

“As far as our overall advances growth is concerned, it stands at over 6% and we would like to see it growing up to 10%. Much of it could be a function of the real economy,” Khara said, adding that retail loans will continue to grow at a faster pace, going by the early signs seen in October. “This month we have seen decent demand from corporates too, and if that continues, we should be in a position to see decent numbers. The unutilised loan limits might decline from the current 50% to 30-35%,” he said.

Deposits grew 9.8% y-o-y to Rs 38.1 lakh crore as on September 30, with the current account savings account (CASA) ratio up 85 bps y-o-y at 46.24%.

SBI’s shares ended 1.14% higher than their previous close on the BSE at Rs 527.65 on Wednesday.

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Uday Kotak cautions equity investors of risks ahead

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Moving forward, the equity markets will continue to march upwards and the long-term outlook continues to be intact.

Uday Kotak, MD & CEO of Kotak Mahindra Bank, in a message cautioned investors that markets had run ahead of the economic reality. “We have seen the markets going much ahead than the economic reality over the last 18 months and from Samvat to Samvat the markets have performed outstandingly for investors,” Kotak said.

He further emphasised the central banks’ efforts across the world, including India, to keep the liquidity taps open ever since the pandemic occurred in 2020. The move also resulted in strong inflows in the Indian capital markets for the last 16-18 months. “Central banks around the world, including in India, have opened up the flood gates of money,” he said.

Considering the surge in the number of retail investors, he also advised investors to plan both risks and returns during investing in the markets, taking into account the challenges that may occur in the times ahead. However, with the economy of the country improving significantly and that of China’s witnessing challenges, the banker said he continued to be optimistic about the markets moving forward. “Enjoy the market ride but also be aware of the consequences,” said Kotak.

Moving forward, the equity markets will continue to march upwards and the long-term outlook continues to be intact.

However, investors will continue to track global economies, the decision of central banks, and commodity and oil prices among other factors in the near-term.

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Central Bank of India may exit PCA next year after RBI revises norms

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The central bank has excluded the parameter of return on assets (ROA) from the list of triggers that could put a bank under the PCA framework.

By Piyush Shukla

The Reserve Bank of India’s modified guidelines on prompt corrective action (PCA) framework will likely aid Central Bank of India to exit the same next year. The central bank has excluded the parameter of return on assets (ROA) from the list of triggers that could put a bank under the PCA framework.

The RBI had placed Central Bank of India under the prompt corrective action framework in June 2017 for negative return on assets and higher ratio of bad loans, among others. Presently, it is the only lender facing restrictions under the framework.

According to the RBI’s revised circular on PCA, capital, asset quality and leverage will be the parameters used to identify lenders weak enough to enter PCA. As on September 30, Central Bank of India’s capital adequacy ratio (CRAR) improved to 15.38% from 12.34% a year ago, registering an improvement of 304 basis points. Of this, common equity Tier-I capital stood at 13.41%, while Tier-II capital was 1.97%.

The lender’s asset quality also improved in the reporting quarter with gross and net bad loans ratio falling to 15.52% and 4.51%, respectively, as on September-end, from 17.36% and 5.60%, respectively, a year ago.

Leverage ratio, as at the end of September, stood at 5.15%, higher than 3.96% as on September 30, 2020. “The bank meets all the revised parameters for exiting the PCA framework and we expect the bank could exit the PCA in the current financial year,” Anil Gupta, vice-president and sector head of financial sector ratings at Icra told the Financial Express.

In a report dated September 30, Icra had reaffirmed A+ rating on Central Bank of India’s Tier-II bonds amounting to Rs 2,500 crore. It also revised the outlook on these bonds to stable from negative after an improvement in the bank’s capital position and solvency profile, mainly backed by Rs. 4,800-crore capital infusion by the Centre.

“The ‘stable’ outlook factors in the improved prospects of the bank for exiting the PCA framework and resuming business growth, which will be a positive from a profitability perspective,” the report said.

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High interest rates make Bajaj Finance FD the ideal investment avenue for one’s Diwali bonus, BFSI News, ET BFSI

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Pune (Maharashtra) [India], November 3: The commencement of Diwali is accompanied by the joy of receiving one’s Diwali bonus. With the much-awaited Diwali bonuses being credited widely, it can be tempting to splurge and treat oneself to some extravagance. Still, it would be a more prudent choice to invest a portion of one’s hard-earned income.

For working professionals, saving and investing should be the top priorities for budgeting their earnings. This is one reason why one must actively seek out better ways of investing their money. Amidst the sea of uncertainties and volatile market movements, the fixed deposit has proved to be a safe harbour for investors. Bajaj Finance is one such financier that offers investors the dual benefit of high FD interest rates along with deposit safety.
Here’s why one should invest in this instrument to yield high risk-free returns this Diwali:
Benefit from high FD interest rates

Bajaj Finance offers one of the highest FD interest rates, up to 6.50%, along with an extra rate benefit of 0.10% p.a. for online investors. Senior citizens get an additional rate benefit of 0.25% p.a. irrespective of the mode of investment.

Consider an example where an individual invests Rs. 2,00,000 choosing a 5-year tenor in a Bajaj Finance online FD, the table shows the expected returns at maturity.

Loan against fixed deposit for cash crunches

Bajaj Finance Fixed Deposit offers a loan against the FD facility to address emergencies. This way, investors will not have to break their FD and thus, benefit from accumulated interest. The maximum loan amount one can avail of is 75% of the FD value.

Online FD calculator to estimate returns

To make financial planning simple, Bajaj Finserv gives free access to an online fixed deposit calculator. With it, investors can determine the returns they’ll earn at maturity. One needs to select the investment amount and tenor to get the results.

Easy online application process

Amidst all the celebrations, investors can kick-start their investment journey from the comfort of their homes. Booking an FD with Bajaj Finance is now easier than ever with an end-to-end paperless and digital process. One has to fill an online form and submit a few essential documents to start investing. Investing online can fetch investors aged below 60 years an additional rate benefit of 0.10% p.a.

Highest safety and credibility

Market-linked investments may offer high returns, but one must keep a close eye on them to shield them from fluctuations and capital loss. Fixed deposits, in this case, are incredibly safe, owing to their non-equity-linked nature as opposed to mutual funds and stocks. Moreover, Bajaj Finance FDs come with the highest ratings of MAAA and FAAA from ICRA and CRISIL, ensuring that their savings grow safely. This way, investors can be confident that their earnings are in safe hands.

Investors can consider investing their bonuses in a Bajaj Finance Fixed Deposit to grow their savings without worrying about market uncertainties.



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5 Best Multicap Mutual Fund SIPs To Consider In 2021-22

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Quant Active Fund Direct

Quant Active Fund Direct-Growth is a tiny fund in its category, with assets under management (AUM) of 1,189 crores. The fund’s expense ratio is 0.5 percent, which is lower than the expense ratios charged by most other Multi Cap funds.

The 1-year returns for the Quant Active Fund Direct-Growth are 89.33 percent. It has returned an average of 22.21 percent per year since its inception. The fund has top ranking from CRISIL rating agency.

ITC Ltd., Reliance Industries Ltd., State Bank of India, Vedanta Ltd., and Fortis Healthcare (India) Ltd. are the fund’s top five holdings. With a diverse portfolio of Large Cap, Mid Cap, and Small Cap companies, the programme strives to provide long-term capital appreciation and income.

Edelweiss Recently Listed IPO Fund

Edelweiss Recently Listed IPO Fund

Edelweiss Recently Listed IPO Fund Direct – Growth has assets under management (AUM) of 805 crores, making it a medium-sized fund in its category. The fund’s expense ratio is 1.14 percent, which is greater than the expense ratios charged by most other Thematic funds.

Edelweiss Recently Listed IPO Fund Direct has a 1-year growth rate of 85.28 percent. It has returned an average of 22.18 percent per year since its inception. The programme aims to deliver capital appreciation by investing in newly listed 100 businesses’ stock and equity-related assets, as well as upcoming Initial Public Offerings (IPOs).

Kotak India Growth Fund Series

Kotak India Growth Fund Series

The Kotak India Growth Fund Series 4 Direct-Growth is a medium-sized fund with assets under management (AUM) of 86 crores. The fund’s expense ratio is 0.34 percent, which is lower than the expense ratios charged by most other Multi Cap funds.

Kotak India Growth Fund Series 4 Direct has a 1-year growth rate of 79.25 percent. It has returned an average of 21.30 percent every year since its inception. The scheme aims to create capital appreciation by investing in a diverse portfolio of equities and equity-related securities across a range of market capitalizations and sectors. The NAV of Kotak India Growth Fund Series 4 for Nov 02, 2021 is 20.43.

Mahindra Manulife Multi Cap Badhat Yojana

Mahindra Manulife Multi Cap Badhat Yojana

The fund is invested in Indian stocks to the tune of 97.05 percent, with 44.06 percent in large cap stocks, 24.02 percent in mid cap stocks, and 26.43 percent in small cap stocks. As of 30/09/2021, Mahindra Manulife Multi Cap Badhat Yojana Direct – Growth has assets under management (AUM) of Rs.783 crores, making it a minor fund in its category. The fund’s expense ratio is 0.66 percent, which is lower than the expense ratios charged by most other Multi Cap funds.

Mahindra Manulife Multi Cap Badhat Yojana Direct has a one-year growth rate of 87.45%. It has returned an average of 20.84 percent every year since its inception. The strategy aims to generate medium to long-term capital appreciation by diversifying appropriately and minimising business risks.

Baroda Multi Cap Fund

Baroda Multi Cap Fund

The fund is invested in Indian stocks to the tune of 96.86 percent, with 34.03 percent in large cap stocks, 18.18 percent in mid cap stocks, and 27.26 percent in small cap stocks. Baroda Multi Cap Fund Direct-Growth is a medium-sized fund in its category, with assets under management (AUM) of 1,156 crores. The fund’s expense ratio is 1.54 percent, which is greater than the expense ratios charged by most other Multi Cap funds.

The 1-year returns for the Baroda Multi Cap Fund Direct-Growth are 78.30 percent. It has had an average yearly return of 16.15 percent since its inception.

5 Best Multicap Mutual Fund SIPs To Consider In 2021-22

5 Best Multicap Mutual Fund SIPs To Consider In 2021-22

Fund Name AUM in Cr 3 Year Return
Quant Active Fund 1188.84 103.93%
Edelweiss Recently Listed IPO Fund 804.98 94.36%
Kotak India Growth Fund 86.47 87.87%
Mahindra Manulife Multi Cap Badhat Yojana 783.16 84.27%
Baroda Multi Cap Fund 1155.58 72.94%

Conclusion

Conclusion

Because these funds invest in mid- and small-cap equities as well as large-cap firms, they are riskier than large-cap funds. In a strong economy, a multi-cap fund manager can increase his exposure to mid- and small-sized companies to profit from higher earnings.

Before adding a Multicap Fund to their portfolio, investors should carefully assess their existing Mutual Fund investments and current exposure to the various market cap segments. Multicap funds are not appropriate for investors with a time horizon of less than 5-7 years or a low risk tolerance.



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2 Best 5-Star Rated ELSS Funds For SIP In 2021 With 1 Year CAGR of Over 60%

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Should I Invest In ELSS?

According to research published by S&P Indices Versus Active (SPIVA), over the one-year period ending in June 2021, the S&P BSE 200 ended in the green, returning 58.77%. Another reason is that, according to the Associations of Mutual Funds in India (AMFI), these funds have the highest portfolio record of 1,29,69,205 among Growth/Equity Oriented Schemes in September.

They can provide above-average and risk-adjusted returns over the long term, particularly 3 to 5 years. In terms of absolute return, ELSS funds have beaten the Index by 53.66 percent in one year, 76.19 percent in three years, 76.19 percent in five years, and 48.57 percent in ten years. Whereas these funds have also outperformed the Index based on risk-adjusted return, as Indian ELSS have generated 46.34% returns in 1 year, 76.19% in 3 years, 80.95% in 5 years and 51.43% in 10 years, according to the scorecard of SPIVA as of June 30, 2021.

Apart from having exposure to equity and equity-related instruments, ELSS also has exposure to fixed income securities, making it a must-have fund in your portfolio for long-term inflation-beating returns, as well as a blend of tax deductions and wealth creation.

As a result, based on the scheme’s performance, asset under management, and Morningstar’s 5-star rating, we’ve selected two ELSS funds that you can consider for SIP in 2021 in order to generate higher long-term returns than other tax-saving investments such as tax-saving fixed deposits, PPF, NSC, and so on.

DSP Tax Saver Fund Regular Plan Growth

DSP Tax Saver Fund Regular Plan Growth

Having been launched in the year 2013 this fund has been rated 5-star by Morningstar as of 12th August 2021 which indicates a SIP call for the investors. According to the report of the fund house, this ELSS scheme returns of the last 1-year are 68.16% and since launch, it has delivered 18.88% average annual returns as of October 29, 2021.

The fund has its top equity allocation across the Financial, Technology, Energy, Construction, Chemicals sectors. ICICI Bank Ltd., HDFC Bank Ltd., Infosys Ltd., Axis Bank Ltd., and State Bank of India are the fund’s top five holdings. This fund has an Asset Under Management (AUM) of Rs 9,755.66 crores as of September 30, 2021, and a Net Asset Value (NAV) of Rs 89.38 as of November 2, 2021. The fund has an expense ratio of 0.81% as of Nov 02, 2021 and SIP can be started with Rs 500.

Period DSP Tax Saver Fund NIFTY 500 TRI NIFTY 50 TRI
CAGR since Inception 18.88% 15.20% 14.53%
1 Year 68.16% 59.08% 53.69%
3 years 25.53% 21.24% 20.82%
5 Years 17.40% 16.35% 16.81%
Data as of October 29, 2021. Source: invest.dspim.com

Axis Long Term Equity Fund Growth

Axis Long Term Equity Fund Growth

This ELSS mutual fund has also been rated 5-star by Morningstar as of 30 Dec 2019. Axis Long Term Equity Fund which is active since 2009 has generated good returns of 62.42% in 1-year and since launch, it has delivered 18.76% average annual returns as of September 30, 2021 according to the data of the fund house. The fund’s best equity allocation is spread across the Financial, Services, Technology, Chemicals, Healthcare sectors.

Bajaj Finance Ltd., Avenue Supermarts Ltd., Tata Consultancy Services Ltd., Info Edge (India) Ltd., and Housing Development Finance Corpn. Ltd. are the fund’s top five holdings. As of September 30, 2021, this fund has an Asset Under Management (AUM) of Rs 34,370.78 crores and a Net Asset Value (NAV) of Rs 76.00 as of November 2, 2021. As of November 2, 2021, the fund has an expense ratio of 0.74 percent, which is lower than most other ELSS funds, and SIPs may be started with as little as Rs 500 towards the fund.

Period Annualised(%) S&P BSE 200 TRI Benchmark(%) Nifty 50 TRI Additional Benchmark (%)
Since inception 29th Dec 2009 18.76% 12.79% 12.31%
5 Years 17.96% 16.85% 16.81%
3 Years 21.74% 19.44% 18.58%
1 Year 62.42% 61.22% 58.54%
Data as of September 30, 2021. Source: axismf.com

Best ELSS Funds For SIP In 2021

Best ELSS Funds For SIP In 2021

Here are two ELSS funds to consider for SIP in 2021, based on Morningstar’s 5-star rating and tremendous one-year return.

Funds 1 mth returns 6 mth returns 1 Yr returns 3 Yr returns 5 Yr returns
DSP Tax Saver Fund Regular Plan-Growth 2.38% 25.33% 66.92% 24.41% 16.89%
Axis Long Term Equity Fund Growth 1.27% 24.61% 57.67% 23.87% 19.04%
Source: Groww

Disclaimer

Disclaimer

The views and investment tips expressed by authors or employees of Greynium Information Technologies, should not be construed as investment advice 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 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



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2 Pharma Stocks To Buy From ICICI Securities

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Ajanta Pharma

Ajanta Pharma’s today’s share price is Rs. 2085 per share on November 3, till 2.00 PM IST. ICICI Securities has given a target price of Rs. 2500 per share with a target period of 12 months for the stock.

The company is a focused player in branded, which constitutes ~70% of overall sales. Till FY21 their overall exports: domestic formulations ratio was at 70:30. Ajanta Pharma’ in Q2FY22 reports a strong number, which was ahead of estimates on their sales front. Their sales were up 23.6% YoY to Rs. 884.8 crore. Ajanta’s PAT grew 15.1% YoY to Rs. 195.9 crore.

According to ICICI Securities, “Ajanta’s share price has grown by ~1.4x over the past 5 years (from ~ Rs. 1502 in June 2016 to ~ Rs. 2126 levels in October 2021). We retain our BUY rating on the stock with a focused approach. We value Ajanta at Rs. 2500 i.e. 30x P/E on FY23E EPS.”

Additionally, the brokerage firm said, Ajanta’s “Q2 results were driven by growth across segments amid some dip in gross margin performance. The management expects to maintain domestic growth momentum in FY22 leveraging on the already launched products. On the EBITDA margins front, the management expects to maintain the current rate in FY22. Overall, calculated focus, steady gross margins, and lighter balance sheet are some key differentiators for Ajanta, going ahead.”

Sun Pharmaceutical Industries (SUNPHA)

Sun Pharmaceutical Industries (SUNPHA)

Sun Pharmaceutical Industries (SUNPHA) is having a share price of Rs. 786.55 on November 3, till 2.10 PM IST. ICICI Securities has identified it as a stock to buy. ICICI Securities has given a target price of Rs. 965 with a Target Period of 12 months for this company’s stock.

ICICI informs, “Sun Pharma is world’s fourth-largest specialty generic company with sales of US$3.8 billion and boasts of 43 manufacturing sites addressing segments, like specialty products, branded generics, complex generics, pure generics and APIs.” Sun Pharma has a market share of 8.2%, and the company is ranked No. 1 in domestic formulations while enjoying a leadership position in 11 specialties based on prescription.

In Q2FY22 Sun Pharma reports strong Q2FY22 results, their sales were up 12.5% YoY to Rs. 9625.9 crore and EBITDA was at Rs. 2629.9 crore, which was up 19.9% YoY with margins at 27.3%. Additionally, their consequent adjusted PAT stood at Rs. 2047 crore that increased by 12.9% YoY.

According to ICICI Securities, “Sun Pharma’s share price has increased by ~1.06x over the past 5 years (from ~ Rs. 763 in June 2016 to ~Rs. 815 levels in October 2021). We change our rating from HOLD to BUY due to more consistency on the specialty front and linear growth trajectory India formulations. Higher contribution from specialty and the strong domestic franchise is likely to change the product mix towards more remunerative businesses by FY23.”

Disclaimer

Disclaimer

The above stocks were 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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2 Stocks To “BUY” For Good Gains Up To 28% In 1 Year: ICICI Direct

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Buy Trent Ltd with a target price of Rs 1330

Trent is India’s top retailer, with 400+ outlets and a footprint in a variety of consumer sectors. According to the brokerage, Trent reported its highest ever quarterly revenue in Q2FY22, followed by robust EBITDA margins. On a favourable base, revenue grew 126% YoY to Rs 1020.4 crore (two-year CAGR: 12%). “Trent also reported robust EBITDA margins of 21.7% (Q2FY21: 1.4%, Q2FY20: 16.2%). On account of robust operational performance, PAT came in at Rs 125.6 crore (Q2FY20: Rs 38.3 crore, Q2FY21: (-) Rs 48.1 crore)” the brokerage said.

“Trent has been an exceptional performer with stock price appreciating at ~39% CAGR in the last five years. We value Trent at Rs 1330 based on SOTP valuation” said ICICIdirect.

ICICIdirect has said “During its recent AGM, the management has affirmed its aggressive store opening plans for its fashion format (Westside: 35 & Zudio: 75) in FY22 (outlined CAPEX worth Rs 200 crore in FY22E). Capex trajectory accelerated in H1FY22 with CAPEX up 224% YoY to Rs 68.7 crore. Trent continues to have healthy cash and investments worth Rs 685 crore, which would enable it to tide over the current situation better than peers. We maintain BUY rating on the stock with a revised target price of Rs 1330 (earlier | 1100).”

Buy Dabur India with a target price of Rs 745

Buy Dabur India with a target price of Rs 745

Dabur India Ltd is a prominent FMCG company in India, with revenues of over Rs 7,680 crore and a market cap of over Rs 48,800 crore. “Dabur reported healthy results with 10% volume growth, sales were up 12% YoY with strong growth across segments, EBITDA was at Rs 620.7 crore, up 9% YoY, with margins at 22% and consequent PAT was at Rs 505.3 crore (up 4.6% YoY)” said the brokerage.

“Dabur’s share price has given 100% return in the last five years (from Rs 298 in November 2016 to Rs 598 in November 2021). We maintain our estimates with expected strong growth propelled through new product, rural distribution & Ayurveda, naturals consumption tailwind. We value the stock at Rs 745 on ascribing 55x FY24 earnings multiple. We continue to maintain our BUY rating on the stock” ICICIdirect has said.

Disclaimer

Disclaimer

The above stocks are 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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