Agrochemical firm UPL to raise funds up to ₹4,200 crore via rights issue (cnbctv18.com)
looks like funds rising for debt payment.
Posts in category Value Pickr
Sugar Cycles: 7-8 years of losses followed by 2-3 years of super gains! (23-12-2023)
GOI to tighten screws against sugar mills violating monthly sugar sale quota; to cross-check GST data to verify actual sell.
The Department of Food and Public Distribution (DFPD) controls the monthly sale of sugar, by allocating a quota to every sugar mill as to how much sugar it can offloaded in the market during the said month. Cumulatively, it is known as the ‘monthly sugar sale quota’. The objective of this is to maintain a steady supply of sugar in the market, sufficient enough to cater to domestic demand. This also aims to check the distressed sale of sugar in the market, thereby maintaining that sugar is sold at or above the Minimum Selling Price of Rs.31/kilo set by the Government. Hence, the monthly sugar sale quota is a carefully thought policy of the Government designed to maintain sugar equilibrium in the country.
The quota was introduced at the request of the sugar mills, who had represented to the Government for the same. However, reports suggest that several sugar mills flout this quota, and sell more sugar than the quota allocated to them, which goes unreported in the system.
The Directorate of Sugar wants to tighten the loose screws. According to sources, come January 2024, the Directorate will have access to the GST data of each sugar mill to validate the sale of sugar as per the quota allocated. The data will be cross-checked to find any discrepancies.
The sources say that the process will start from January 2024, and to begin with, the December 2023 monthly sales quota will be scrutinized. The Government will take strict action against those who are found violating the sugar supply quota under the Essential Commodities Act. An official notification is awaited for the same.
Tejas Networks – Product based IT business in a favored sector? (23-12-2023)
Potential is huge!!! BSNL network which Tejas is currently upgrading for 100,000 sites to 4G under TCS consortium can then be upgraded to 5G. India being the leader of global south will also be able to capture those 5G markets, since most of those countries will not be able to expend money for expensive 5G RAN equipment and systems. Even Tejas would be able to participate in the US Rip and Replace program aggressively with this deal, once the technology is tested by the US authorities. Similarly the European markets too.
Investing Basics – Feel free to ask the most basic questions (23-12-2023)
What is this AIF, Alternate Investment Funds that is being shared across? I dismissed these as MLM equivalents but now have friends telling me about it. I don’t plan to do any investments in it but what is going on ?
HDFC Bank- we understand your world (23-12-2023)
Well, they have. as per RBI, 98.3+% of the population now have a bank account due to PMJDY and the India stack requirements.
Lt foods (daawat) (23-12-2023)
Finally company received order in its favour. https://www.bseindia.com/xml-data/corpfiling/AttachLive/0d5ab9bb-1741-42ad-ba31-fdd6a8da97ed.pdf
HDFC Bank- we understand your world (23-12-2023)
I have been reading posts regarding the HDFC base or market cap being so huge that it can’t grow further. One question comes to my mind, what’s stopping HDFC from growing, market cap is just a number. India’s population is 1.4B and a bank account is a must in today’s world, do you really think 1.4B people have a bank account in India, I don’t think so. Plus, nowadays people keep more than one bank account. HDFC Bank is the private sector leader, people always prefer the leader even in our day-to-day life if it’s not damn expensive.
After the merger, HDFC Bank provides everything in one place i.e. Demat, Home Loan, Vehicle Loan, Personal Loan, Saving Account, etc.
India is still a growing country, we are damn far away from the “developed country” tag. I don’t understand the economy well but one thing is for sure the finance sector will be the most beneficial sector in a growing country.
I’m not sure what exactly is deteriorating but it’s a life cycle of all companies I don’t think that should be a concern.
In the end, it’s all about with whom you are comparing HDFC Bank
- If you are comparing with other large caps in India, then HDFC Bank will do better.
- If you are comparing with global banks, totally illogical comparison.
- If you are comparing with small-mid caps then obviously HDFC bank won’t be a multi-bagger in the next couple of years but we might see a sudden jump to give it a fair valuation.
Dis: Heavily invested (> 10%) through MFs (Index Fund + Parag Parikh Flexi Cap Fund)
Investment avenues with monthly fixed income (23-12-2023)
At least I am in the same camp, who believes in early retirement and financial independence. My heart and mind always said there is no point working until the age of 58-60, when the life expectancy is so unpredictable. Then, when are we going to spend time on ourselves or spend at least last few years with family or friends ?
With above thought in mind, I decided to plan my investments accordingly. But I was clueless where to invest for good returns. Then I did some research on various options, particularly FDs and Bonds. Today I am 49 and until last year my most of the investments were in properties and equity. While I continue to hold the properties, I shifted a significant portion of equity profits and liquid money to fixed income options. For me the investment journey of fixed income started at the end of 2022.
In my research, I realized there is no such thing called “risk free”. Its just that some carry high risk and some low. While bank FDs promised 6-8% pre tax returns, a good A/AA rated bonds were giving anywhere between 8-11% pre tax. Of course there are lower rated bonds which offer higher returns, but I was not interested.
As I mentioned there is no such thing called risk free, one may go for traditional govt schemes if you need absolute low risk for your investment, but then returns are not that great. At the end I was okay with some small risk but with a guarantee, so rather going for traditional govt schemes, I opted long tenure FDs (5 years) and Bonds (10 years) which are backed by the state government guarantee. Never put all eggs in one basket applies here as well. So I ensured maximum exposure to each state government is not more than 10lakhs.
So far so good. FDs are giving me 8% and will continue for next 5 years. Bonds are giving me 9-10% and will continue for next 10 years. I am always in search of new bond offerings that are guaranteed by the state government.
Today I am happy that my fixed monthly returns are higher than my monthly expenditure (I am not worried even if I resign from the job 
).
Please do share your stories too.
MTAR Technologies – A wager on innovation meeting economies of scale (23-12-2023)
both are from same region (Hyderabad) …
both have common customers like ISRO and DRDO, I guess.
Investment avenues with monthly fixed income (23-12-2023)
It has been a regular sight when employees discuss about early Retirement and financial independence. My office is no exception. While we were discussing this Yesterday, we were trying to identify opportunities which would ensure risk free monthly income.
Are there any FDs or bonds or funds with monthly return/dividend on investment? How much is the return and how safe are these investments?
Can rent on properties be safer vehicle investment here?
I thought of seeking fellow VPers input on such avenues considering depth amd breadth of their knowledge. Do advise.