Posts tagged All News
Patanjali noodles riding on Ramdev’s marketing (04-09-2015)
Ujaas Energy – Value Migration to Solar Power (04-09-2015)
@chintans Thanks for such a detailed response. Agree with your thoughts on net-metering. Need to wait and watch on how the situation pans out in India. If its favorable, early starters like Ujaas can reap huge benefits. I generally do not invest in sectors which are heavily regulated or in which major clients are public sector companies. But I can make an exception for solar, because increasing solar power generation is inevitable. What we need to figure out is the right time to invest.
Rise in Hero royalty pay to Honda (04-09-2015)
Gone with the wind: Investors lose Rs 1.9 lakh cr in a day (04-09-2015)
Indian stocks tumbled on Friday, with the benchmark Sensex posting its steepest weekly loss in nearly four years, as investors await Friday’s US payrolls data.
Axis Bank and ICICI Bank retreated at least 3.4% to pace losses for the financial sector. Vedanta, the largest copper producer, slid 5.1%. Tata Steel, the biggest producer of the alloy, and Tata Motors slumped the most in a week.
The S&P BSE Sensex fell 2.2% to 25,201.90, capping its lowest close since July 2014. It slumped 4.5% this week, the most since November 2011.
The August non-farm payrolls report may add fuel to the debate over whether the US economy is strong enough for the Federal Reserve’s first interest-rate increase since 2006. Overseas investors sold a net $231 million of Indian stocks on September 2, paring this year’s inflows to $4.1 billion.
“Global investors are facing redemption pressure in a risk- off environment,” Jitendra Panda, chief executive officer at Peerless Securities said. “Everyone is watching everything in all this turmoil. We expect volatility to continue.”
India’s gross domestic product increased by a less-than-expected 7% in the April-to-June period, slowing from a 7.5% expansion in the previous quarter.
The Sensex has fallen 8.4% this year and trades at 14.3 times projected 12-month earnings. The MSCI Emerging Markets Index is valued at a multiple of 10.4.
Investor wealth slumped by R1.92 lakh crore on Friday owing to Sensex’s 563-point fall. Following the sharp decline in stocks, the market capitalisation of BSE-listed companies fell by R1,92,604.36 crore to R93,83,643 crore.
“Indian indices remained under pressure primarily on account of the sustained global risk-off trend, which has had its impact on stock markets across the world.
“Concerns with respect to the Chinese economy slowdown and its impact on global growth, the consequent currency volatility, and the stance that the US Fed would adopt in its policy meet a couple of weeks from now, continued to affect investor sentiments,” said Hitesh Agrawal – head research, Reliance Securities.
Infibeam gets RBI nod for 49% FII investment (04-09-2015)
E-commerce firm Infibeam has received RBI approval for FII investment of up to 49%.
Simultaneously, Sebi has sought clarification from the merchant banker of the e commerce player regarding its proposed IPO. Infibeam filed a draft red herring prospectus with the BSE and the NSE in June to raise R450 crore.
Sources said the Sebi approval should come in this month following which the company will decide on the timing of the IPO. The firm plans to utilise the proceeds to fund business expansion, meet working capital requirements and pay off debts.
Without disclosing details of clarification sought, Sebi has said it is awaiting response from the lead managers for the proposed public offer. The capital market regulator said it might issue observations on the draft offer documents within 30 days of receiving a satisfactory reply from the lead merchant banker regarding the clarification or additional information sought from them.The next update would be uploaded on the Sebi website on September 7.
Infibeam plans to invest R230 crore in making a cloud-based data centre at the Gujarat International Fin-Tec City (GIFT). Started in 2007, Infibeam runs several e-commerce services such as Infibeam.com, Indent, BuildaBazaar, Incept and Picsquare. Last year, Sony Music had bought a 26% stake in Indent. Flipkart and Snapdeal have raised massive funding rounds and Infibeam seems to be going the same way.
Infibeam operates in Ahmedabad, Delhi, Mumbai and Bangalore, and has a total of 1,300 employees. It is an online retailer for books, electronics and automobiles in India.Infibeam is valued at R1,800 crore ($283 million). Market leader, Flipkart is valued at $12 billion, while the world’s largest e-tailer Amazon has a market cap of $202 billion.
Cipla steps up US expansion, buys 2 firms in $550-mn deal (04-09-2015)
Prabhat Dairy IPO manages to sail through (04-09-2015)
Prabhat Dairy’s initial public offering (IPO) managed to sail through on Friday, after the issue was extended by three days and its price band lowered. The issue received muted response in the aftermath of a selloff in global equities.
Merchant bankers to the issue claimed that the IPO’s fresh issue was subscribed more than one time, thus meeting the capital market regulator’s minimum subscription provisions.
According to the Issue of Capital and Disclosure Requirement (ICDR), a company is required to achieve minimum subscription clause of 90% of the fresh offer size.
Overall, the issue was subscribed 0.77 times without a single bid from FIIs, data from stock exchanges showed. The non-institutional book comprising HNIs was subscribed 1.42 times and the retail portion got just 0.34 times demand against the shares reserved for the category. “The issue has successfully gone through,” said Vikas Khemani, CEO, Edelweiss Financial Services. “Given the recent developments in global markets and the selloff thereafter, the IPO has done well,” Khemani said.
Prabhat Dairy’s IPO included a fresh issue of nearly 2.65 core shares worth R300 crore and an offer for sale of 1.47 crore shares from existing investors.
The IPO was extended by three days as the issue failed to get fully subscribed as on September 1 — the final day of offering. The price band has been revised to R115-126 from the original band of R140-147 per share. As a result, the overall issue size was lowered to R485.22 crore from R516 crore. However, the size of fresh issue — R300 crore — remained intact.
Maruti to seek shareholders’ nod for Gujarat plant (04-09-2015)
GVK wins court fight over Australian coal mine (04-09-2015)
Retain buy on Coal India, target Rs 439 (04-09-2015)
Coal India’s dispatches in August were up 8.9% y-o-y to 40.2 mt, maintaining its healthy high single-digit growth rate. Among the subsidiaries, CCL posted the strongest growth (~20%).
MCL’s growth was ~13% despite disruptions for a few days due to bandh. Dispatches were weak at ECL (down 17%) and WCL (down 2%); both produce high grade coal and are priced close to import prices.
There is a case for price correction in higher-grade (G1 to G4) coal on fall in RB Index, but the overall volumes are just 5% of the total dispatches. YTD dispatches are up 8.2% y-o-y, largely in line with our 9% growth estimate for FY16 (534 mt).
Production growth moderated to 4.8% to 36.2mt in August. Although production growth moderated because of intended destocking, the overburden removal in 1QFY16 was very strong—implying stronger production during rest of the year.
We continue to believe that CIL’s dispatches will rise at a CAGR of 10% to 781m tonne by FY20. In the 1QFY16 analyst meet, the management reiterated its focus on growing production.
CIL’s adjusted Ebitda is likely to grow at a 12.8% CAGR to R38,600 crore by FY20, largely benefiting from operating leverage, transparent pricing for non-power sector and 10% volume CAGR. Based on DCF valuation (WACC of 12.8%), we value the stock at R439— marginally lower than our earlier estimate of R450. The stock is trading at an EV of 6.6x FY17E adjusted Ebitda. Reiterate ‘buy’.