Reserve Bank of India – Press Releases
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Stock To Buy: Forging Stock That Can Generate Nearly 30% Returns In 1-Year
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Setting a near 30% upside on the stock
Emkay Global sees a near 30% upside potential on the stock of Ramkrishna Forgings from the current levels to a target price of Rs 1,530 and that too in 1-year’s time.
“Ramkrishna Forging delivered 26% EBITDA beat versus our Q2 forecasts, driven by a 10% revenue beat and 300bps EBITDA margin beat. Revenue surprise was supported by higher-than-expected sales in industrials, while margin beat was driven by inventory gains. ROE based on H1 annualized profits expanded to a healthy 16%,” the brokerage has said. Order bookings according to Emkay Global remained consistent from auto and industrial customers in India and overseas markets.
“Recent orders could add incremental revenues of up to Rs5bn in FY23E/24E, in our view. Beginning the execution of some orders in FY22 can provide an upside risk to our FY22 volume estimates by 5%,” the brokerage has said.
Strong quarter
According to Emkay Global revenue grew 129% yoy to Rs5.8bn, above our estimate of Rs 5.3 billion, aided by higher-than-expected revenues in the Industrials segment. Domestic revenue grew 115% to Rs 2.9 billion, led by a 70% volume surge. In comparison, export revenue grew 152% to Rs 2.9 billion, led by a 100% volume jump. EBITDA margin expanded by 600 basis points yoy to 24%, (Consensus est.: 21%) above estimates, led by inventory gains. Consequently, net profits increased from Rs 21 million in Q2FY21 to Rs 0.5 billion in Q2FY22, above the estimate of Rs 0.4 billion,” the brokerage has said.
Retain buy with a price target of Rs 1,530
Emkay Global has retained a buy on the stock of Ramkrishna Forging. “With a DCF-based Dec’22 TP of Rs1,530, implying a forward EV/EBITDA of 9x. Operating leverage, B/S deleveraging, diversification and continued order wins/flows are likely to put on Ramkrishna Forging on a sustainable path of profitability. ROE is likely to rise from a low of 3% in FY21 to 23% in FY24E, driven by better margins and asset turnover,” the brokerage has said.
According to Emkay Global the key risks include delay in auto sector/macro recovery, client concentration risk and adverse currency.
Disclaimer
The above stocks are picked from the brokerage report of Emkay Global. 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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NEW DELHI: Indians are outpacing the rest of the world when it comes to cryptocurrency adoption even as investors are still awaiting the official verdict on cryptocurrency exchanges in the country.
A study conducted by the portal BrokerChoose’s annual crypto proliferation index reveals that at over 10 crore, India has the largest number of crypto owners in the world followed by the US and Russia.
As a percentage of the population, India has the fifth-highest rate of crypto owners at 7.3%. This index is topped by Ukraine at 12.73% of the population, followed by Russia at 11.91%, Kenya at 8.52% and the US at 8.31%.
The study also evaluated internet searches in various countries to assess the interest in cryptocurrencies.
In the past twelve months, India had the second-highest number (nearly 36 lakh) of total crypto searches, while the US saw the highest number of crypto searches at 69 lakh.
In fact, India ranked second out of 154 countries on the 2021 Global Crypto Adoption Index by Chainalysis in August this year.
India’s market grew 641% over the past year, the report showed, using a metric that estimates the total cryptocurrency received by a country.
“Large institutional-sized transfers above $10 million worth of cryptocurrency represent 42 per cent of transactions sent from India-based addresses,” said the report, adding that the numbers suggest that India’s cryptocurrency investors are part of larger, more sophisticated organisations.
Point to note: The world’s biggest cryptocurrency, bitcoin, has already gained more than 50% since the start of the year. The one-year gain stands at around 400%, which is promoting more and more Indians to opt for crypto exchanges.
A survey conducted by consulting firm Kantar shows that 19% of urban Indians intend to invest in virtual tokens in the next six months. And when it comes to crypto ownership, Bitcoin rules the roost with a preference of 75 per cent, followed by Ethereum at 40 percent, Binance coin at 23 per cent, and XRP at 18 per cent.
One major attraction is the chance to earn high profits by investing in small amounts. WazirX allows investments into bitcoin with as little as Rs100-500.
Indians who own cryptocurrency are mostly in the age bracket of 21 to 35 and live in metro cities. The owners have a “higher risk appetite”, the survey said, as they are preferring crypto, mutual fund over the fixed deposits and life insurance.
So a spurt in the popularity of crypto exchanges and platforms in recent months like CoinSwitch Kuber (CSK), WazirX, CoinDCX, ZebPay, Unocoin and BuyUcoin etc is not surprising.
Crypto exchange Zerodha has over seven million users against 11 million at CoinSwitch Kuber. There are 8.3 million at WazirX.
Unocoin has even launched deposits via UPI wallets in the Indian currency for a faster top-up to buy and sell Bitcoins and other cryptocurrencies on the platform despite the uncertainty among the prospective users regarding the usage of cryptocurrency in comparison to real money.
Last week, CoinSwitch Kuber raised over $260 million in Series C funding round from a clutch of investors, valuing the company at $1.9 billion.
A survey conducted by consulting firm Kantar shows that 19% of urban Indians intend to invest in virtual tokens in the next six months. And when it comes to crypto ownership, Bitcoin rules the roost with a preference of 75 per cent, followed by Ethereum at 40 per cent, Binance coin at 23 per cent, and XRP at 18 per cent.
Indian start-ups in the crypto space have received 73% more funding in the first six months of calendar 2021 compared to the whole of 2020, shows data from Tracxn. Another NASSCOM report titled ‘Crypto Industry in India’, said that more than 60% of states in India are emerging as crypto tech adopters, with the industry set to reach 241 million dollars by 2030 in India.
But cryptocurrencies are yet to be accepted as legal tender and lack legal framework and regulatory norms in the country.
The ball is currently in the court of the finance ministry and the Reserve Bank of India (RBI).
A cryptocurrency bill is expected in the winter session. The finance ministry has also reportedly formed a new committee to find out if income made by crypto-trading could be taxed.
Meanwhile, RBI is also looking to launch its first official digital currency as a regulated “central bank digital currency (CBDC)” by the end of 2021. Much of the scepticism stems from the fact that a worldwide boom in cryptocurrency has bred the ground for fake trading platforms.
But with larger investors warming to crypto and other digital assets, the total amount of funding for global blockchain companies hit a record $6.586 billion in the September quarter, almost double of that raised in 2020, according to market intelligence platform Blockdata.
On Monday, cryptocurrency analytics firm Elliptic raised $60 million from investors including SoftBank and Wells Fargo Strategic Capital.
The company tracks the movement of cryptocurrencies on blockchain to help financial crime compliance.
Earlier in May, a Brazilian money management firm focused on cryptocurrencies raised about $26 million from investors including SoftBank Group Corp and in July the SoftBank Latin America fund invested $200 million in the Series B funding of 2TM Group, the digital asset group that owns cryptocurrency exchange Mercado Bitcoin.
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NEW DELHI: Indians are outpacing the rest of the world when it comes to cryptocurrency adoption even as investors are still awaiting the official verdict on cryptocurrency exchanges in the country.
A study conducted by the portal BrokerChoose’s annual crypto proliferation index reveals that at over 10 crore, India has the largest number of crypto owners in the world followed by the US and Russia.
As a percentage of the population, India has the fifth-highest rate of crypto owners at 7.3%. This index is topped by Ukraine at 12.73% of the population, followed by Russia at 11.91%, Kenya at 8.52% and the US at 8.31%.
The study also evaluated internet searches in various countries to assess the interest in cryptocurrencies.
In the past twelve months, India had the second-highest number (nearly 36 lakh) of total crypto searches, while the US saw the highest number of crypto searches at 69 lakh.
In fact, India ranked second out of 154 countries on the 2021 Global Crypto Adoption Index by Chainalysis in August this year.
India’s market grew 641% over the past year, the report showed, using a metric that estimates the total cryptocurrency received by a country.
“Large institutional-sized transfers above $10 million worth of cryptocurrency represent 42 per cent of transactions sent from India-based addresses,” said the report, adding that the numbers suggest that India’s cryptocurrency investors are part of larger, more sophisticated organisations.
Point to note: The world’s biggest cryptocurrency, bitcoin, has already gained more than 50% since the start of the year. The one-year gain stands at around 400%, which is promoting more and more Indians to opt for crypto exchanges.
A survey conducted by consulting firm Kantar shows that 19% of urban Indians intend to invest in virtual tokens in the next six months. And when it comes to crypto ownership, Bitcoin rules the roost with a preference of 75 per cent, followed by Ethereum at 40 percent, Binance coin at 23 per cent, and XRP at 18 per cent.
One major attraction is the chance to earn high profits by investing in small amounts. WazirX allows investments into bitcoin with as little as Rs100-500.
Indians who own cryptocurrency are mostly in the age bracket of 21 to 35 and live in metro cities. The owners have a “higher risk appetite”, the survey said, as they are preferring crypto, mutual fund over the fixed deposits and life insurance.
So a spurt in the popularity of crypto exchanges and platforms in recent months like CoinSwitch Kuber (CSK), WazirX, CoinDCX, ZebPay, Unocoin and BuyUcoin etc is not surprising.
Crypto exchange Zerodha has over seven million users against 11 million at CoinSwitch Kuber. There are 8.3 million at WazirX.
Unocoin has even launched deposits via UPI wallets in the Indian currency for a faster top-up to buy and sell Bitcoins and other cryptocurrencies on the platform despite the uncertainty among the prospective users regarding the usage of cryptocurrency in comparison to real money.
Last week, CoinSwitch Kuber raised over $260 million in Series C funding round from a clutch of investors, valuing the company at $1.9 billion.
A survey conducted by consulting firm Kantar shows that 19% of urban Indians intend to invest in virtual tokens in the next six months. And when it comes to crypto ownership, Bitcoin rules the roost with a preference of 75 per cent, followed by Ethereum at 40 per cent, Binance coin at 23 per cent, and XRP at 18 per cent.
Indian start-ups in the crypto space have received 73% more funding in the first six months of calendar 2021 compared to the whole of 2020, shows data from Tracxn. Another NASSCOM report titled ‘Crypto Industry in India’, said that more than 60% of states in India are emerging as crypto tech adopters, with the industry set to reach 241 million dollars by 2030 in India.
But cryptocurrencies are yet to be accepted as legal tender and lack legal framework and regulatory norms in the country.
The ball is currently in the court of the finance ministry and the Reserve Bank of India (RBI).
A cryptocurrency bill is expected in the winter session. The finance ministry has also reportedly formed a new committee to find out if income made by crypto-trading could be taxed.
Meanwhile, RBI is also looking to launch its first official digital currency as a regulated “central bank digital currency (CBDC)” by the end of 2021. Much of the scepticism stems from the fact that a worldwide boom in cryptocurrency has bred the ground for fake trading platforms.
But with larger investors warming to crypto and other digital assets, the total amount of funding for global blockchain companies hit a record $6.586 billion in the September quarter, almost double of that raised in 2020, according to market intelligence platform Blockdata.
On Monday, cryptocurrency analytics firm Elliptic raised $60 million from investors including SoftBank and Wells Fargo Strategic Capital.
The company tracks the movement of cryptocurrencies on blockchain to help financial crime compliance.
Earlier in May, a Brazilian money management firm focused on cryptocurrencies raised about $26 million from investors including SoftBank Group Corp and in July the SoftBank Latin America fund invested $200 million in the Series B funding of 2TM Group, the digital asset group that owns cryptocurrency exchange Mercado Bitcoin.
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RBI authorises Karur Vysya Bank to collect direct taxes, BFSI News, ET BFSI
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Private sector Karur Vysya Bank on Tuesday said it has commenced the integration process with the Central Board of Direct Taxes to collect direct taxes on its behalf, following the approval it received from the Reserve Bank. “Reserve Bank of India has authorised Karur Vysya Bank to collect direct taxes on behalf of Central Board of Direct Taxes. Following the approval received, the bank has initiated the integration process with CBDT“, the Tamil Nadu based-bank said in a statement.
Once the integration process gets completed, the bank customers can remit the direct taxes through any branch or through net banking or mobile banking services (DLite Mobile application).
“It has been the long standing requirement of our customers that they should be able to pay their direct taxes through our bank. We are happy that we will be in a position to offer this service to our customers”, the bank’s MD and CEO, B Ramesh Babu said.
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Wells Fargo report, BFSI News, ET BFSI
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As banks bet more on digital banking, nearly 100,000 positions in US banks are at stake and could vanish over the next five years, a report by Wells Fargo said.
Large US banks are investing more in digital banking and other technologies, which could vanish roles of branch managers, call center employees and tellers, leading to massive job cuts in the sector.
Disappearance of such jobs could be drawn parallel with the massive contraction in manufacturing work in the 1980s and ’90s, according to the report.
“Our conclusion is still that this will be the biggest reduction in US bank headcount in history,” the analysts wrote, with job cuts accelerating once the economy fully recovers from the COVID-19 pandemic.
These roles are predicted to be replaced by artificial intelligence, cloud computing and robots. These technological advances are set to perform daily banking functions like taking payments, approving loans and detecting fraud, the report said.
“Branches will likely show a decline, especially given greater digital banking adoption during the pandemic. Many branches that were closed during the pandemic will likely remain closed permanently [and] new future mergers will likely reduce branches, too,” the report said.
The financial sector accounts for 19% of the country’s GDP, up from 13% in 2000. Since the 2008 financial crisis, big banks have continued to witness larger growth. However, between 2007 and 2018, rapid automation in the sector led the country’s four largest banks to reduce staff by a combined 3,00,000 positions.
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Solar Company Stocks To Watch Out For As The Sector Gains Focus
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1. Waa Solar:
Part of the Madhav Group, Waa Solar is a Gujarat based entity. The company is a pan India conglomerate working in the sectors such as Renewable Energy, Infrastructure and real estates. The Company has entered power purchase agreement with the Airport Authority of India to develop Solar Power Plant at Bhopal Airport.
The company is a small cap scrip that in today’s trade has hit an upper circuit limit of 41.65 with gains of over 9 percent. The stock commands a market cap of Rs. 55 crore.
2. Synergy Green Industries:
This is again a small cap scrip with a market cap of Rs. 142 crore .Formerly know as Shantaram Machineries Pvt. Ltd., Kolhapur) The organization’s areas of activity include Machining, Shot Blasting
Painting,Quality Inspection and Packing and Dispatch.
The company is a state of the art world class foundry Installed with India’s largest automated fast loop moulding line for large castings. The company is part of the Shirgaokar Group.
The company’last trading price was Rs. 155.90 per share on the NSE.
3. Websol Energy System:
Like other players in the company, the stock of Websol also gained traction in today’s trade and hit a fresh 52-week high price of Rs. 87.95.
The company is a leading manufacturer of photovoltaic monocrystalline solar cells and modules in India. The company has its state of the art facility in West Bengal. The companies’ photovoltaic modules are used by several domestic, commercial as well as industrial applications.
4. Sterling and Wilson Solar:
The conglomerate firm RIL has acquired 40% stake in Shapoori Pallonji owned Sterling and Wilson Solar Ltd (SWSL) for Rs 2,845 crore.
The EPC powerhouse, Sterling and Wilson, commenced its operations in 1970s with a few large-scale projects in the Middle East, further venturing into the Asian subcontinent and various other countries.
The Solar EPC Division of Sterling and Wilson Private Limited, Sterling and Wilson Solar Limited commenced operations in 2011 and was subsequently demerged in 2017. This division was formed to tap into the growing renewable energy market.
Ever since the stake purchase by RIL, the stock has been gaining ground and last closed at Rs. 469.5 per share.
5. Ujaas Energy:
Started operations in the year 1979, the company based out of Indore is a provider of clean energy solutions. This is again a small cap scrip and in the previous day’s trade, the stock of the company emerged as the top stock gainer in B group after the scrip gained a huge 20 percent.
The penny stock from the space last closed at a price of Rs.3.65 per share on the NSE.
6. Gita Renewable:
This has been the outlier in the segment and last closed at a price of Rs. 211.85 per share. The company works with the prime objective of generating power using renewable sources such as hydro, solar and wind. The company based out of Tamil Nadu has turned into profitable for the first time since its listing in the year 2015. In the June ended quarter, the company’s profit surged to Rs. 36 lakh.
Disclaimer
Note there are other renowned companies’ in the space such as Suzlon etc. which also needs to be watched out for.
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RBI bans audit firm Haribhakti & Co for two years
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Haribhakti & Co was the auditor of Srei Infrastructure Finance, whose board was superseded by the RBI and against which insolvency proceedings were initiated last week.
The Reserve Bank of India (RBI) on Tuesday banned chartered accountant firm Haribhakti & Co from undertaking any type of audit assignments for regulated entities for a period of two years, starting April 1, 2022.
The action was taken for the firm’s failure to comply with a specific direction issued by the RBI with respect to its statutory audit of a systemically important non-banking financial company (NBFC), the central bank said in a statement.
This is the first time the RBI has taken such action against an auditor of a systemically important NBFC.
“The RBI has by an order dated September 23, 2021, debarred Haribhakti & Co from undertaking any type of audit assignment/s in any of the entities regulated by RBI for a period of two years with effect from April 1, 2022,” the statement said.
The action has been taken under Section 45 MAA of the RBI Act, which allows the banking regulator to act against auditors. The ban will not impact audit the firm’s assignments in RBI-regulated entities for the financial year 2021-22, the statement said.
In 2019, the RBI had imposed a one-year ban on SR Batliboi & Co, an affiliate of global auditing firm EY, after it found lapses in the audit report of a bank.
Haribhakti & Co was the auditor of Srei Infrastructure Finance, whose board was superseded by the RBI and against which insolvency proceedings were initiated last week.
The Kolkata Bench of the National Company Law Tribunal on October 8 gave its approval to start insolvency proceedings against Srei Infrastructure Finance and its wholly owned subsidiary Srei Equipment Finance after the RBI filed insolvency applications.
According to rating reports of March 6, 2021, by CARE Ratings, Srei Infrastructure Finance owed banks loans worth Rs 11,117.71 crore, apart from outstanding bonds and NCDs worth Rs 710.63 crore.
Srei Equipment Finance had outstanding bank loans worth Rs 16,912.21 crore and other debt instruments worth Rs 499.45 crore. All these facilities and instruments were rated ‘D’, or default grade, in March.
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Reserve Bank of India – Press Releases
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It is hereby notified for information of the public that in exercise of powers vested in it under sub section (1) of Section 35 A of the Banking Regulation Act, 1949 read with Section 56 of the Banking Regulation Act, 1949, the Reserve Bank of India (RBI) vide Directive Ref. No. DoS.CO.NSUCBs-West/D-1/12.22.252/2021-22 dated October 12, 2021, has issued certain Directions to The Seva Vikas Co-operative Bank Limited, Pune, whereby, as from the close of business on October 12, 2021, the bank shall not, without prior approval of RBI in writing grant or renew any loans and advances, make any investment, incur any liability including borrowal of funds and acceptance of fresh deposits, disburse or agree to disburse any payment whether in discharge of its liabilities and obligations or otherwise, enter into any compromise or arrangement and sell, transfer or otherwise dispose of any of its properties or assets except as notified in the RBI Direction dated October 12, 2021, a copy of which is displayed on the bank’s premises for perusal by interested members of the public. In particular, a sum not exceeding ₹1000 (Rupees One Thousand only) of the total balance across all savings bank or current accounts or any other account of a depositor, may be allowed to be withdrawn subject to the conditions stated in the above RBI Directions. 2. The issue of the above Directions by the RBI should not per se be construed as cancellation of banking license by RBI. The bank will continue to undertake banking business with restrictions till its financial position improves. The Reserve Bank may consider modifications of these Directions depending upon circumstances. 3. These Directions shall remain in force for a period of six months from the close of business on October 12, 2021 and are subject to review. (Yogesh Dayal) Press Release: 2021-2022/1033 |
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Shivalik Small Finance Bank partners with Go Digit Insurance
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Shivalik Small Finance Bank on Tuesday announced a strategic partnership with Bengaluru-based insurtech company, Go Digit General Insurance, to provide an array of instant, easy-to-understand insurance products through the bank’s network of branches across India.
This will include health insurance plans, motor insurance, and home and shop insurance. This partnership will enable over 4.5 lakh customers of Shivalik Small Finance Bank to instantly access and purchase from Digit’s list of offerings, through paperless processes, in real time.
This range of products will be available to the customers of Shivalik Small Finance Bank across all its 31 branches and its digital network across the country.
‘Committed to innovation’
Commenting on the partnership, Harsh Mittal, Chief Financial Officer, Shivalik Small Finance Bank said, “At Shivalik, we are committed to constantly innovating and adding new products and services to expand our offerings to the underbanked masses. Our collaboration with Go Digit General Insurance will aid us in making the process of buying cover, submitting and receiving claims easier for our customers leveraging the strong tech platforms that both organisations have and supported by our distribution network which reaches the far ends of Bharat.”
Vijay Kumar, CEO and Principal Officer, Go Digit General Insurance said, “Our partnership with Shivalik Small Finance Bank comes at a time when we are looking to expand our reach to newer markets with an aim to aid insurance penetration. The bank has a strong foothold in the northern states of the country and this association will help the bank’s customers in getting insured from a partner that believes in simplicity, transparency and hassle-free settlement of claims.”
Shivalik’s current customers predominantly fall into segments such as retail, manufacturing and services, housing and real estate and microfinance.
As part of its small finance bank proposition, Shivalik is actively engaged in discussions with multiple fintech partners to reach newer customer segments like entrepreneurial and underbanked women, kirana stores, millennials in need of neo banking services and individuals looking for gold loans, according to Mittal.
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