Category: Personal Finance

Buy State Bank of India stock

According to Motilal Oswal among PSU Banks, State Bank of India remains the best play on a gradual recovery in the Indian economy, with a healthy PCR, Tier I of 11.3%, strong liability franchise and improved core operating profit. It appears well positioned to report strong uptick in earnings, led by normalization in credit cost.

“We estimate PPOP at 14% CAGR over FY21-23E v/s 6% CAGR (FY18-21), enabling State Bank of India to achieve 15% RoE (decadal high) by FY23E,” the brokerage has said.

VIP Industries

According to Motilal Oswal VIP industries is the largest luggage manufacturing company and would immensely benefit from opening up of the economy and pick up in domestic leisure travel.

Buy Tata Motors stock

The brokerage also has a buy call on the stock of Tata Motors. “Recovery is underway in all of the three businesses of Tata Motors.

While India CV business would see cyclical recovery, JLR is witnessing both cyclical and structural, supported by a favorable product mix. This could drive recovery in JLR’s EBIT margins and leave scope for a surprise on profitability.

The India PV business (34% CAGR) would witness structural recovery aided by refreshed product portfolio and market share gains which will bring it on track to achieve FCF breakeven by FY23,” the brokerage has said.

United Spirits

According to Motilal Oswal Financial services, recovery post the second COVID wave has been faster than that in FY21 and continues to improve.

“The outlook appears promising with: a) on-trade channel returning to normalcy; b) increased occasions for home indulgence; c) the ongoing strategic review of half of the Popular portfolio to be concluded by Dec’21, which would offer further primacy to the Prestige & Above (P&A) segment; d) potential success in the P&A segment in terms of both growth and ; e) the new CEO taking over recently; and e) faster-than-expected deleveraging,” the brokerage has said.

Indian Hotels

Motilal Oswal Financial Services expects gradual recovery in FY22E and sharp recovery in FY23E on (a) a low base, (b) improvement in ARR once normalization is achieved, (c) improved occupancies, (d) positivity in cost rationalization efforts in FY21, (e) an increase in F&B income as banqueting and conferences resume, and (f) higher income from management contracts.

“The company is on the right track to grow its EBITDA as new revenue-generating avenues are seeing higher EBITDA margins,” it has stated.

Buy Ultratech Cement stock

Ultratech Cement enjoys leadership position across regions, which helps it maintain its premium pricing in most markets. Ultratech Cement is setting up Cement capacities of 19.5mtpa, which would drive sales volume CAGR of 10% over FY21-24E.

“We expect Ultatech Cement to turn cash positive in FY24E and expect RoE to improve further to 15% by FY24E on higher asset turnover, led by an enhancement in capacity utilization, continued debt reduction, and improvement in EBIT margin,” Motilal Oswal Financial Services has said.

Macrotech Developers

Lodha is one of the largest real estate developers in India, benefitting from the recent demand pick-up and the optimism behind the expected upcycle. Prices have hit rock bottomed and are expected to pick-up gradually in the near term as the supply crunch is likely to see demand exceeding launches.

The Income Tax Department yesterday on 1st November 2021 has rolled out the new Annual Information Statement (AIS) on the Compliance Portal which provides a comprehensive view of information to a taxpayer with a facility to capture online feedback. 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) The display of Form 26AS on the TRACES portal will also continue in parallel till the new AIS is validated and completely operational, claimed Central Board of Direct Taxes in a statement yesterday under the Ministry of Finance and Department of Revenue.

The new AIS includes additional information relating to interest, dividend, securities transactions, mutual fund transactions, foreign remittance information, etc. The reported information has been processed to remove duplicate information. A taxpayer will be able to download AIS information in PDF, JSON, CSV formats, according to the department.

A facility has been established for the taxpayer to submit online feedback if they consider the information is erroneous, refers to another person/year, or is duplicate. Feedback can also be provided in bulk by submitting multiple pieces of information. Taxpayers can also use an AIS Utility to monitor AIS and input feedback in an offline mode. In the AIS, the reported value and the value following feedback will be displayed individually. If the information is changed or rejected, the source of the information may be addressed for clarification and confirmation.

A simplified Taxpayer Information Summary (TIS) has also been generated for each taxpayer which shows the aggregated value for the taxpayer for ease of filing return. TIS shows the processed value (i.e. the value generated after deduplication of information based on pre-defined rules) and derived value (i.e. the value derived after considering the taxpayer feedback and processed value). If the taxpayer submits feedback on AIS, the derived information in TIS will be automatically updated in real-time. The derived information in TIS will be used for pre-filing of Returns (pre-filling will be enabled in a phased manner).

Taxpayers should remember that the Annual Information Statement (AIS) includes information presently available with the Income Tax Department. There may be other transactions relating to the taxpayer which are not presently displayed in the Annual Information Statement (AIS). Taxpayers should check all related information and report complete and accurate information in the Income Tax Return, said Income Tax Department.

Taxpayers are asked to review the information in the Annual Information Statement (AIS) and provide feedback if any of it needs to be changed. When submitting the ITR, the value stated in the Taxpayer Information Summary (TIS) may be taken into account. If the ITR has already been submitted and some information has been left out, the return may be updated to add the missing information.

Income Tax Dept rolls out the new Annual Information Statement(AIS) on the Compliance Portal. It provides a comprehensive view of information to taxpayer, with facility to capture online feedback. Click on link ‘AIS’ under the ‘Services’ tab on https://t.co/GYvO3n9wMf to access. pic.twitter.com/Ub4EAgmkLq

— Income Tax India (@IncomeTaxIndia) November 1, 2021

In case there is a variation between the TDS/TCS information or the details of tax paid as displayed in Form 26AS on the TRACES portal and the TDS/TCS information or the information relating to tax payment as displayed in AIS on Compliance Portal, the taxpayer may rely on the information displayed on TRACES portal for the purpose of filing of ITR and for other tax compliance purposes. Taxpayers may refer to the AIS documents (AIS Handbook, Presentation, User Guide, and FAQs) provided in the “Resources” section or connect with the helpdesk for any queries through the “Help” section on the AIS Homepage. the department further clarified.