Millet-based snacking company Troo Good has raised ₹55 crore in a funding round led by OAKS Asset Management.
The Hyderabad-headquartered company will use the funds raised in the Series A funding round to expand their business from Andhra Pradesh and Telangana into several other States across India, as well as achieve their mission of serving nutritious and affordable snacks to 1 crore children every day, a company statement said.
“We have come a long way in creating a robust pipeline of products and corresponding expertise and are now looking to scale rapidly. We are delighted to have OAKS on board and backing us for this next exciting phase of the Troo Good journey,” it said.
“We expect to have a significant ramp-up in the millet based snacking segment over the next decade and Troo Good is ideally positioned to be at the forefront of this wave,” said Raju Bhupathi, Founder of Troo Good.
Customer base
Currently, the company serves nearly 10 lakh children every day and expects this number to go up significantly as they open new markets.
“We are convinced that Troo Good will create an extraordinary pan-India nutritional food brand over the next few years. We are excited about partnering with Troo Good on this journey over the next few years,” Vishal Ootam, CEO and Founder at OAKS Asset Management said.
According to the research report of the brokerage “Mahindra & Mahindra’s standalone revenue/adjusted PAT grew 15.5%/31% YoY and 13%/81% QoQ to INR133b/INR16.9b, while EBITDA declined by 17% YoY (+2% QoQ) to INR 16.6b. Revenue/EBITDA/adjusted PAT grew 46%/28%/ 97% in 1HFY22 and volumes grew 3% YoY and 2% QoQ. The net realization grew 12% YoY and 11% QoQ to INR698k/unit (est. INR640.6k), driven by ~13% YoY and 12% QoQ growth in Auto segment realization to ~INR779k/unit and tractor realizations grew by ~8% YoY and 4% QoQ to INR551k/unit.”
Motilal Oswal has said “the gross margin of M&M’s declined by 6pp YoY (-320bp QoQ) to 27.2% (est. 28.5%), impacted by commodity cost and adverse mix (lower Tractor sales) and lower than estimated staff cost (-10% QoQ due to one-off) and other expenses (on account of operating leverage) supported EBITDA margin at 12.5% (est. 12.3%), a decline of 480bp YoY and 140bp QoQ. EBITDA declined by 17% YoY and 2% QoQ to INR16.6b (est. ~INR15b).”
The brokerage has also said in its research report that “PBIT margin for Tractor/Auto segment of MM’s fell 6pp/270bp YoY, but rose 160bp/100bp QoQ to 18.7%/2.7%, higher other income (driven by dividend from subsidiaries) boosted adjusted PAT growth by ~31% YoY and 81% QoQ to ~INR16.9b (est. INR11.2b) and investment in subsidiaries/JVs/associates stood ~INR4.6b in 1HFY22 (v/s INR29.4b in 1HFY21).”
Buy Mahindra & Mahindra with a target price of Rs 1150
According to the research report of Motilal Oswal, the management commented that Mahindra & Mahindra Ltd. is currently consolidating its EV business by merging Mahindra Electric (100% subsidiary) with the standalone entity, bringing the entire EV business under one roof. It plans to have a sizable share in e-3Ws, e-LCVs, and e-PVs.
“In the Farm Machinery business, Mahindra & Mahindra Ltd is targeting to grow its FY27 revenue by 10x to ~INR50b (including ~INR10b from exports), led by strong growth in the domestic industry (to ~INR120b by FY27 from INR50b currently), and driving market share gains to over 30% from sub-10% currently” said Motilal Oswal.
The brokerage has further clarified in its research report that “We expect the Auto business to take over the growth mantle from Tractor, although deterioration in the mix would restrict EBITDA/EPS CAGR to ~17%/~23% over FY21-23E. MM’s valuations are still at a substantial discount to its five-year average, reflecting a weaker Tractor cycle. Implied core P/E for MM stands at 12.3x/9.6x FY22E/FY23E EPS. This implies an over 30% discount (on an FY23E basis) to its five-year average core P/E. We maintain our Buy rating, with a TP of INR1,150/share (Sep’23E SoTP).”
Disclaimer
The above stock is picked from the brokerage report of Motilal Oswal. 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.
The Department of Posts (DoP) has decided to handover operations of its pan-India network of 1,000 onsite ATMs to its arm, India Post Payments Bank (IPPB).
IPPB, in turn, plans to engage the services of a managed service provider (Brown Label ATM operator/BLAO) to manage these ATMs on an operational expenditure (opex) model.
The move by IPPB to hire a managed service provider comes at a time when the Reserve Bank of India (RBI) and the Ministry of Home Affairs (MHA) have tightened the norms relating to the ATM ecosystem.
RBI norms include implementation of cassette swap for replenishing ATMs and introduction of a scheme of penalty for downtime at ATMs due to cash-outs.
Further, MHA had issued guidelines in 2018, prescribing cut-off time, after which no cash loading of the ATMs or cash transportation activities can be done in urban and rural areas and left-wing extremism affected areas.
Responsibilities
IPPB expects the managed service provider to replace all the existing ATMs of DoP (India Post) with new ATMs on opex model.
The service provider will also be responsible for the ATMs’ upgrade, maintenance, cash management, customer complaints redressal and online monitoring, among others.
These ATMs will be integrated with the bank’s existing infrastructure seamlessly. IPPB will be sponsor bank and DoP will be a sub member for ATM operations.
Under the opex model, transaction revenue will be with IPPB and the managed service provider will be paid a fixed monthly amount for each ATM machine and support infrastructure such as AC, UPS, etc.
As per the Reserve Bank of India’s Committee to Review the ATM Interchange Fee Structure (2020), the average monthly cost of operating ATMs in the case of managed service providers, who deploy and operate ATMs for banks, is about ₹70,565 per ATM pre-compliance and would be about ₹83,700 per ATM after complying with recent ATM security guidelines and control measures, MHA guidelines and cassette swap requirements.
The aforementioned cost does not include cost of cash (holding) as it is borne by banks in BLAO model, the six-member Committee headed by VG Kannan, then Chief Executive of the Indian Banks’ Association, said.
The States where DoP has more than 50 ATMs include Tamil Nadu (97; the Department’s first ATM was inaugurated at Thyagaraya Nagar Head Post Office in Chennai in 2014); followed by Uttar Pradesh (89); Karnataka (76); Maharashtra (75); West Bengal (65); Rajasthan (64); Andhra Pradesh (59), and Kerala and Madhya Pradesh (52 each).
IPPB was set up by the government as a public limited company under India Post in 2016 to remove barriers to access basic financial services by the common man especially in the unbanked and under-banked areas.
The Reserve Bank of India has today released the data on Overseas Direct Investment, both under Automatic Route and the Approval Route, for the month of October 2021.
Even as government bodies are exploring options to encourage people to take Covid jabs, a regional rural bank in Kerala has come out with a novel motivational incentive by offering an additional interest rate on the deposits for its customers.
The product – KGB Kavacham – introduced by the Malappuram-headquartered Kerala Gramin Bank in this regard has started receiving overwhelming customer response since its launch on July 1 that helped the bank to garner additional ₹500 crore deposits till September.
The cumulative deposits opened under the scheme, according to bank officials, will fetch an interest rate of 5.55 per cent, which is higher than the prevalent rate of interest for the same period for normal deposits opened for 15 months by 0.25 per cent
“We joined hands with the government’s Covid vaccination drive by launching this deposit scheme linked to vaccination. It is intended to motivate people to get vaccinated,” KR Bindu, Assistant General Manager, Kerala Gramin Bank, Malappuram told BusinessLine.
Innovative approach
Vaccine hesitancy, reportedly, has resulted in lower turnout of people in Malappuram district compared to other districts in the State which prompted the bank to come up with an innovative idea. “The success of our scheme is evident from the deposit collections,” added Bindu.
This is for the first time in India a rural bank is drumming up support for the government’s vaccination campaign, according to Bindu, and KGB Kavacham is a distinct effort to salute all who braved the trauma and setbacks caused by the Covid pandemic, she added.
Those who have taken a single or double dose of the Covid-19 vaccine are eligible for the bank’s deposit scheme. Besides, the bank has also rolled out a special term-deposit scheme – KGB Platinum – to commemorate the platinum jubilee celebrations of India’s independence – offering a higher interest rate of 5.60 per cent for deposits made for 775 days.
The Indian rupee depreciated by 11 paise to 74.16 against the US dollar in opening trade on Wednesday, tracking a lacklustre trend in the domestic equity market and firm American dollar.
At the interbank foreign exchange, the rupee opened on a weak note at 74.11, then fell further to 74.16, registering a decline of 11 paise from the last close.
On Tuesday, the rupee had closed at 74.05 against the US dollar.
Dollar index
Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, rose by 0.08 per cent to 94.03.
“As the inflows in the two IPOs getting subscribed are tepid, the dollar rupee was bought yesterday from 73.86. Today, there could be outflows of Nykaa and may be some inflows of Paytm,” said Anil Kumar Bhansali, Head of Treasury, Finrex Treasury Advisors.
Bhansali further said that “importers to keep buying near to 74.00 and below. Exporters will wait for 74.40 and 74.50 before they begin to sell.” Global oil benchmark Brent crude futures advanced 0.29 per cent to $85.03 per barrel.
Moreover, foreign institutional investors were net sellers in the capital market on Tuesday as they offloaded shares worth ₹2,445.25 crore, as per exchange data.
On the domestic equity market front, the 30-share Sensex was trading 286.21 points or 0.47 per cent lower at 60,147.24, while the broader NSE Nifty declined 84.40 points or 0.47 per cent to 17,959.85.
The Department of Posts released clarifications on the operation of post office savings accounts in a circular dated November 5, 2021. The clarifications on different POSB Operations concerns such as the issuing of a new passbook, opening of a joint account, issuing a POSB Cheque to a Savings Joint Account, opening of a Basic Savings Account, and more. Below is a list of all the department’s clarifications on how to operate a post office savings account:
1. Issue of Fresh Passbook in lieu of old passbook in any other CBS PO
The procedure for issue of fresh passbook in lieu of old / used up passbook is prescribed in Rule 44 of POSB CBS Manual. But there is no clarity whether the fresh passbook of accounts standing in CBS Post Offices (PO) can be issued by any other CBS PO. It is clarified that any CBS PO can issue a fresh passbook for the account standing in any other CBS PO in lieu of a used up / old spoiled passbook, following the procedure prescribed in Rule 44 of POSB CBS Manual.
2. Opening of Joint Account by two or more illiterate depositors or Jointly by an illiterate depositor and literate depositor
As per Rule 5(5) of GSPR 2018 which was circulated in SB Order No. 13/2019 dated 18.12.2019, A blind or visually challenged or illiterate depositor may open a joint account with a literate depositor. Further, there is no restriction in any scheme rules for opening of a joint account jointly by two or more illiterate depositors. It is clarified that a joint account may be opened jointly by two or three illiterate depositors or jointly by Illiterate Depositor and Literate Depositor.
3. POSB Cheque to a Savings Joint Account opened jointly by a literate depositor and an illiterate depositor
As per the provisions in POSB CBS Manual and POSB Manual Volume I, for availing Cheque facility, the depositor should be literate and should be able to sign in running hand besides maintaining a balance of Rs. 500/- in the account. Cheque facility is not provided to the accounts operated by the minor himself. There is no clarity on the issue of a cheque for a joint savings account opened by a literate and illiterate depositor. As per the clarification issued by MoF, all types of operations in a Joint B Account can be done by any of the depositors, it is clarified that cheque facility can be extended to the Joint B accounts opened jointly by an illiterate and a literate depositor subject to the conditions that the cheque will be used only by the literate depositor who can sign in running hand and illiterate depositor shall not use cheque facility of the account. Any cheque used by the illiterate depositor of such account shall not be entertained.
4. Opening of a Basic Savings Account by an individual who is already having a Post Office Savings ‘single’ account
Basic Savings Account has been introduced vide GSR No. 257(E) dated 9th April 2021 through amendment in POSA Scheme 2019. As per the notification, this type of account has been inserted below subparagraph (2) of paragraph (3) of POSA Scheme 2019. As per the provisions made below paragraph (3)(e) of POSA Scheme, only one account can be opened by an individual as a single account.
Since Basic Savings Account is a separate type of account and inserted as subparagraph (3) below subparagraph (2) of paragraph (3) of POSA Scheme 2019, it is clarified that an individual may open a PO Savings Single Account in addition to a Basic Savings Account and vice versa.
5. Limit on the amount of deposit in Branch Post Offices when the deposit is made through Withdrawal form (SB-7) or Cheque
Orders for acceptance of cheque and withdrawal form (SB-7) for Account opening and subsequent deposits at Branch Post Office have been issued in SB Order No. 22/2020 dated 18.06.2020 and SB Order No. 32/2020 dated 23.09.2020. The small savings schemes viz. MIS, SCSS, KVP, NSC and PPF were extended to Branch Post Office in SB Order No.27/2020 dated 23.07.2020. Cash acceptance limit at Branch Post Office in an account in a day was raised from Rs. 25,000 to Rs. 50,000/ in SB Order No. 3/2021 dated 05.03.2021.
In this regard, it is clarified that in respect of subsequent deposit/deposit for opening of any type of account, through withdrawal form and Cheque, no such Limit of Rs. 50,000/ in a day in an account is fixed.
6. Change of guardian in any account
As per Rule 10 (4) of GSPR 2018, in the event of death of the guardian, the succeeding guardian shall be eligible to operate the account of the Minor or the person of unsound mind, as the case may be.
In this regard, it is clarified that change of guardian is permissible only on the death of existing guardian and on the orders of any Court. In such cases, the death certificate of the existing guardian or the orders of Hon’ble Court as the case may be should be produced by the new guardian along with a fresh application form (SB-AOF) and KYC documents duly signed by the new guardian.
7. Presence of the depositor at the time of opening of account
As per Rule 4 of GSPR 2018, only Resident citizen of India is eligible to open an account under National (Small) Savings Schemes and as per Rule 5 of GSPR 2018, An Account may be opened by the depositor either by visiting the Accounts Office in person or through permissible electronic modes. including internet or mobile banking application of the respective Government Savings Bank in accordance with the procedure approved by the Reserve Bank of India, from time to time. It is clarified that:
i. In case an account is opened at the post office, presence of the depositor is mandatory at the time of opening of account.
ii. In case an account is opened by a guardian on behalf of a minor or on behalf of a person of unsound mind, the presence of a guardian is mandatory.
iii. Whenever any account under the schemes identified for opening through Authorized Agents (SAS & MPKBY) is opened through Authorized Agents (SAS & MPKBY), presence of the depositor is optional.
iv. Further, if the account opening forms and KYC documents are collected by the Post Office staff and the depositor’s signature is obtained in front of any authorized officials during the POSB account opening drives/melas/doorstep canvassing etc, presence of such depositors is not mandatory.
8. Change of Joint Depositor in a Joint Account
As per the provision in Rule 8 of GSPR 2018, an account opened as a Single Account cannot be subsequently converted into a Joint Account or vice versa. Further, there is no provision in GSPR 2018 for change of any of the depositors in any Joint account. It is clarified that change of the depositor or inclusion of a new depositor in a Joint Account is not allowed. Further, it is clarified that change of order of the depositor (first / second and third) in an account is also not allowed keeping in view of the fact that various returns / statements are filed with the Income Tax authorities based on the PAN Number of the first depositor in an account.
For investment related articles, business news and mutual fund advise
Allow Notifications
You have already subscribed
Story first published: Wednesday, November 10, 2021, 11:14 [IST]
NCC is one of India’s biggest construction businesses, with a presence in a variety of infrastructure verticals including buildings, roads, water, mining, and electrical. ICICI Direct has recommended a buy call on this stock, with a target price of Rs 100 implying a 24% return over the current market price in a year.
Q2FY22 Results:
NCC’s Q2FY22 results were in line with expectations, with good growth on a low base year over year and high order inflows.
Standalone revenue increased 42.7 percent year over year to Rs 2,199 crore, owing to a solid order book position and a turnaround in execution following the second round of disruptions.
EBITDA margin was 10.8%, down 286 basis points year on year (vs. I-direct estimate of 10.5 percent ).
As a result, operational profit increased by 12.8 percent year on year to Rs 236.6 crore.
PAT increased by 78.5 percent year on year to Rs 104.3 crore.
Target and Valuation
“NCC’s share price has grown merely 2% over the past five years. We maintain our BUY rating on the company Target Price and Valuation: We value NCC at Rs 100/share,” the brokerage has said.
Key triggers for future price performance
Strong order book ensures growth; 23 percent revenue CAGR projected during FY21-23E with margins consistent at 11-11.5 percent; continuing momentum in awarding operations to translate into substantial order inflows.
Mahindra and Mahindra
ICICI Direct has recommended a buy call on this stock, with a target price of Rs 1125 implying a 26% return over the current market price in a year.
Q2FY22 Results
The company’s Q2FY22 results were mixed.
Standalone net sales increased 13.1 percent on a quarter-over-quarter basis to Rs 13,305 crore.
EBITDA margins of 12.5 percent were down 140 basis points from the previous quarter.
The resulting standalone PAT for the quarter was Rs 1,432 crore.
“Stock price has grown at ~8% CAGR from Rs 616 levels in November 2016, outperforming the wider Nifty Auto index. We retain BUY rating on pivot towards capital efficiency, EV proactiveness Target Price and Valuation: We revise SOTP-based Target Price to Rs 1,125; 30% hold co. discount to investment; earlier TP Rs 1,000),” the brokerage has said.
Key triggers for future price performance
On the heels of new product releases across automotive divisions, we expect total volume and sales CAGRs of 15.5 percent and 24.2 percent, respectively, in FY21-23E.
Despite operating leverage gains, mix normalisation in favour of autos due to high base effect in tractors will weigh on blended margins.
By FY23E, we forecast EBITDA margins of 12% and return ratios in the double digits.
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.
The profitable beauty segment start up that garnered a huge investor interest is set to list today. Even on mixed global cues, Nykaa stock on the NSE listed at a price of Rs. 2018 per share on the NSE, while on the BSE the stock settled at a price of Rs. 2001 per share.
Nykaa IPO Lists At 79% Premium At Rs. 2018/Share
The start up company with a stock price of Rs. 2001 is now commanding a market capitalisation of Rs. 95,000 crore higher than 9 Nifty stocks. On the tremendous gains, Nykaa has become the 56th largest company in the country.
On the final bidding day, the over Rs. 5000 crore IPO that comprised both fresh issuance and OFS was subscribed 82 times.
In the grey market-the market of unlisted securities, post the allotment of shares, Nykaa was available at a premium price of Rs. 765 as on November 9, 2021. Even on mixed global cues, Nykaa stock on the NSE listed at a price of Rs. 2018 per share on the NSE, while on the BSE the stock settled at a price of Rs. 2001 per share.
The company aims to deploy the funds for expansion, setting new retail stores and warehouses. It also plans to repay its debt, which could bring down interest costs and shore profitability.
As per Elara Securities, the company which has the first mover advantage will help the company grow 25 percent over the next 5 years.
What to do with Nykaa post listing?
Analysts and experts suggests that 1/3 of the alloted stocks can be booked for profit and the rest can be maintained considering the company’s asset light business model as well as other favourables. So, in case you have been allotted 14 shares, it shall be wise to sell 5 shares of the counter.
GoodReturns.in
For investment related articles, business news and mutual fund advise
Steel Authority of India Limited, situated in New Delhi, India, is a government-owned steel producer. With an annual turnover of INR 66,267 crore for fiscal year 2018-19, it is owned by the Ministry of Steel, Government of India. SAIL was founded on January 24, 1973, and currently employs 64,628 people. Only 3.45 percent of trading sessions in the last 16 years had intraday drops of more than 5%. Annual sales growth of 11.83 percent surpassed the company’s three-year CAGR of 6.4 percent. The stock returned 87.18 percent over three years, compared to 69.27 percent for the Nifty 100.
Nalco
NALCO stands for National Aluminium Corporation Limited, which is a government-owned company with integrated and diversified operations in mining, metals, and power. It is owned by the Ministry of Mines of India. NALCO is currently 51.5 percent owned by the Indian government.
In the fiscal year ended March 31, 2021, the company generated a return on equity of 12.16 percent, surpassing its five-year average of 9.99 percent. Stock returned 45.09 percent over three years, compared to 80.73 percent for the Nifty Midcap 100. Over a three-year period, the stock returned 45.09 percent, while the Nifty Metal returned 68.43 percent to investors.
BHEL
Bharat Heavy Electricals Limited, situated in New Delhi, India, is a government-owned engineering and manufacturing company. It is owned by the Government of India’s Ministry of Heavy Industries and Public Enterprises. For the fourth quarter in a row, the company has lost Rs 45.98 crore. The stock returned 3.0% over the last three years, compared to 80.73 percent for the Nifty Midcap 100.
Oil India Limited
Oil India Limited is the government’s second-largest hydrocarbon exploration and production company. It is owned by the Indian government’s Ministry of Petroleum and Natural Gas, with its operational headquarters in Duliajan, Assam.
In the fiscal year ended March 31, 2021, the company generated a ROE of 14.9 percent, surpassing its five-year average of 11.75 percent. Stock returned 11.29 percent over three years, compared to 80.73 percent for the Nifty Midcap 100. Over a three-year period, the stock returned 11.29 percent, whereas Nifty Energy returned 70.09 percent to investors.
BEL
Bharat Electronics Limited is an aerospace and defence electronics business controlled by the Indian government. It primarily creates complex electronic goods for use on the ground and in space. BEL is one of India’s Ministry of Defence’s nine PSUs. Only 2.26 percent of trading sessions in the last 16 years had intraday gains of more than 5%. The stock returned 123.82 percent over three years, compared to 69.27 percent for the Nifty 100.
Multibagger PSU: 5 Stocks Rose More Than Double In The Last One Year
Company
Last Price (Rs)
One Year Return(%)
SAIL
121
218.84%
Nalco
100.30
196.75%
BHEL
99.90
141.13%
OIL
224
152.39%
BEL
219.90
130.50%
Disclaimer
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.
