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LIC plans to sell RCap bonds worth Rs. 3,400 crore hit another roadblock.
Business, Editorials, Market News, Markets - July 13, 2022

LIC plans to sell RCap bonds worth Rs 3,400 crore hit another roadblock.

LIC plans to sell RCap bonds worth Rs. 3,400 crore hit another roadblock.

Life Insurance Corporation of India (LIC) once again failed to sell secured bonds of Reliance Capital worth Rs 3,400 crore. Now, a non-governmental organization (NGO) is seeking a ban on the bidders who are part of the bankruptcy process.

New Delhi-based NGO — Infrastructure Watchdog — has suspected that the prospective bidders are ‘insiders’ as defined under SEBI rules as they were given access to privileged and confidential business information. This includes Unpublished Price Sensitive Information (UPSI), which is not available in the public domain, the NGO said in a letter sent to LIC and its advisor – IDBI Capital Markets & Securities.

The administrator had invited Expression of Interest (EoI) for RCap and its assets from the prospective bidders as a part of CIRP. Many potential bidders, who are interested in acquiring RCap, have submitted their EoIs.

Access to the sensitive information is with the additional members of the Committee of Creditors (CoC), constituted by the administrator. Some CoC members have also submitted their EoIs and are conducting due diligence. Under SEBI’s (Prohibition of Insider Trading) Regulation, 2015, these CoC members are also ‘insiders’.

The NGO has demanded the LIC and IDBI Capital Markets to ensure that such members are not qualified to join the bond sale process. Moreover, the NGO also want the sellers to obtain an undertaking from bidders, that they neither submitted any nor will participate in RCap’s bankruptcy process and are not members of the CoC.

On 11th July 2022, LIC stretched the deadline to submit bids for bond sales by another 11 days up to July 22. Since July 2021 LIC is trying to sell its bonds but is facing a lot of hurdles. The bonds are now trading at 70% discount. LIC has failed two times earlier. This was because the LIC and prospective buyers could not arrive at a price consensus.

Before the deadline, LIC is expecting the prospective buyers to submit their bids. The company is expecting to recover a minimum of 30% of the bond amount.

RCap is going through insolvency proceedings. The creditors of the former Anil Ambani group company is seeking Rs 23,666 crore in dues. There are only five bidders including a consortium led by Piramal Enterprises, actively pursuing the process, as against the 54 EoIs the firm had received in March.

 

LIC plans to sell RCap bonds worth Rs. 3,400 crore hit another roadblock.
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Stemrobo eyes global expansion, targets to close FY23 with net revenue worth Rs. 70 crores.

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Krishna Institute reported a net profit of Rs. 79 Cr.
Business, Editorials, Market News, Markets - July 13, 2022

Stemrobo eyes global expansion, targets to close FY23 with net revenue worth Rs. 70 crores.

Stemrobo eyes global expansion, targets to close FY23 with net revenue worth Rs. 70 crores.

 

STEMROBO Technologies Private Limited is an educational technology company. The company focuses on leveraging technology in education. The company acts as an enabler for students to learn and innovate in the field of STEAM, Robotics, IoT & Artificial Intelligence( AI).

Stemrobo is working with over 5,00,000 students and teachers, to nurture innovation and creativity at the K-12 level with the help of Stemrobo’s unique custom-designed patented DIY kits, innovative pedagogy, and world-class content, and methodologies delivered through its team of 200+ innovation engineers spread across India.

The company has reported a rise in its profit by 7 times. Stemrobo has recorded a profit of Rs. 2.8 crore in FY22 as against Rs. 34.6 lakh in FY21.

In the next six months, Ed-tech company STEMROBO is going to expand its operations in Nigeria and Cote D’Ivoire in West Africa. Further, the company plans to launch the East Africa chapter in September this year. The focus is on the primary and secondary schools across Kenya and Rwanda. In May 2022 the company started its operations in West Africa. They also launched its programs in 50 primary and secondary schools in Ghana. The company has targeted to reach 250 schools in Ghana by FY23.

The company goals to close FY23 with net revenue of Rs 70 crore and a net profit of Rs. 10.5 crores. There is an increase in net revenue by 108.3% i.e. Rs. 30 crores in FY22 from Rs. 14.4 crores in FY21.

STEMROBO caters to the K-12 segment. The company wants to generate its revenue through annual subscriptions from schools at a minimum guarantee of 250 students. It claims to set up Science, Technology, Engineering, and Mathematics (STEM) based tinkering labs in the schools backed by teacher training, DIY robotic kits, and software. The company has partnered with 2000 schools. And further plan to partner with 5000 schools across India and reach 2.5 million students by the end of next year. 

Furthermore, the ed-tech firm has launched 30 offline centers in India. They also aim to expand through franchise models. The students can use STEMROBO’s offerings through annual subscriptions of Rs. 500.

Stemrobo eyes global expansion, targets to close FY23 with net revenue worth Rs. 70 crores.
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Indigo to “rationalise” salaries of technicians following mass sick leave.

Loan growth, higher margins, and lower costs to drive bank bottom lines in Q1.

NBFCs and HFCs securitization volumes almost doubled.

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Easing of risk weights on loans given to MFIs and NBFCs
Banking, Business, Market News, Markets - July 12, 2022

Loan growth, higher margins, and lower costs to drive bank bottom lines in Q1.

Loan growth, higher margins, and lower costs to drive bank bottom lines in Q1.

 

Indian banks are predicted to post strong core earnings growth in the June quarter. This is due to the improved margins and decline in credit costs. However, rising yields may affect the marked-to-market losses impacting the earnings. The analysts estimated that the credit growth for the banking system will increase by 12%, driven by private banks. Net interest margins may go up by 3%. This is due to better net interest income and an upward interest rate cycle. The treasury loss and lower fees may decline the other income by 27%.

 

The net profit of the overall banking is predicted to drop by 11.5% on QoQ basis. The margin outlook, guidance on deposit accretion for some banks and treasury loss have to be monitored.

 

State Bank of India (CMP Rs. 484.95) is expected to report strong PAT growth. HDFC Bank (CMP Rs. 1,391.80) may report a drop in net profit and NIM is expected to remain range-bound. Kotak Mahindra Bank (CMP Rs. 1718.95) could continue improvement in loan growth however net profit might decline on a QoQ basis. ICICI Bank (CMP Rs. 759.90) might maintain its loan growth momentum as retail continues to see traction while Axis margins are expected to improve. The banks that have a higher share of floating rate books, including mortgages, could have increased credit growth, and rising interest rates. Valuations have also been corrected. This provides a margin of safety. Additionally, asset quality is on the mend, with the risk of a fresh NPA cycle remaining low. This should lead to healthy profitability and return ratios for banks. The gross bad loans might ease up and the overall slippages, recoveries and provisions may return to normal.

According to analysts, the overall Gross non-performing assets ratio is estimated to decline by 20 basis points or by 5.2% in the June quarter. Further, there will be lower slippages reflecting a low EMI bounce rate at 22%, better recovery trends in retail and higher w-offs with banks sitting on excess provisions. Asset quality is expected to improve. As increasing interest rates and the end of the moratorium are building pressure, stress behaviour in the MSME segment needs to be monitored.

Loan growth, higher margins, and lower costs to drive bank bottom lines in Q1.
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NBFCs and HFCs securitization volumes almost doubled.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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Indigo to "rationalise" salaries of technicians following mass sick leave.
Business, Market News, Markets - July 12, 2022

Indigo to "rationalise" salaries of technicians following mass sick leave.

Indigo to “rationalise” salaries of technicians following mass sick leave.

 

On 2nd July 2022, a large number of its cabin crew members took sick leave, to participate in the competitor’s Air India recruitment drive. As a result, 55% of Indigo’s domestic flights were delayed.

Indigo has decided to “rationalise” the salaries of its aircraft technicians and remove “anomalies caused by the pandemic”

On Friday, 22 out of 25 of the airline’s aircraft maintenance technicians went on sick leave in Hyderabad and Delhi. They skipped work to protest against their salaries and low increments. Continuous salary cuts during the pandemic added fuel to the employee’s already simmering anger. In April, Indigo suspended some of its employees due to the pandemic. This led to the mass sick leave of the employees indicating a protest. The DGCA ordered Indigo to compensate passengers for delayed flights.

Indigo expects higher attrition levels among its crew, as Air India is hiring aggressively and Akasa Air and Jet Airways are starting their operations this year. This has created a lot of opportunities in the aviation industry.

Indigo had cut down the salaries of its employees during the COVID-19 pandemic. Last week, the has increased the salaries of pilots and cabin crew by 8%. On the other hand, Air India has restored the salaries of its employees by 75 %.

On Monday, an email was sent to the aircraft maintenance technicians by SC Gupta the Vice President (Engineering) of Indigo. The email sent by him was accessed by PTI. He stated that, the Covid-19 pandemic severely affected the aviation industry over the past 30 months. He also mentioned that the technician’s commitment towards the company has remained consistent through difficult times. He further said that he is apprised of the concerns about salary increase and during the last two years the company have not been able to revise the compensation. He has shared that the company will “rationalise” the salaries of its aircraft technicians. This will come into effect from August 1, 2022.

 

Currently, the share price of Interglobe Aviation Ltd is Rs. 1701.35. The price increased by 6.70 points or by 0.40%. The opening price was Rs.1696.65 and closing Rs. 1694.65. The market cap of the company is Rs. 65,545.

 

Indigo to "rationalise" salaries of technicians following mass sick leave.
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Brent oil fell over 4% in a week amid economic crisis

Adani group to enter into 5G spectrum

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TCS Delays 2025 Salary Hikes in Times of Global Volatility; Variable Pay to Stay for Most Workers
Equities, Markets, Result Updates - July 11, 2022

TCS profit misses estimates as recession fears hit IT spending.

TCS profit misses estimates as recession fears hit IT spending.

On 8th July 2022, TCS announced the financial results for April-June 2022 quarter.
Tata Consultancy Services reported net income of Rs. 94.8 billion . While analysts predicted a net profit of Rs. 99.04 billion. Revenue from operations increased by 16% to 527.6 billion rupees and up by 4.3% QoQ to Rs. 52,758 crore during Q1FY23. However the operating profit margin slipped by 23.1% as against 25% in the previous quater. This was due the wage hikes and and the continued rationalisation of employee costs amid high attrition. The company recorded 5.2% rise in consolidated net profit at Rs. 9,478 crore on YOY basis.
The company has declared dividend of Rs. 8 per share. It will be credited by August 3, 2022, and the record date for the is July 16.
The Indian shares fell on Monday, as IT services major Tata Consultancy Services reported weak results last week.
On 11th July 2022, TCS share price opened lower at Rs. 3,226.15, while the previous closing price was Rs.3,265.45 on the BSE. The stock hit a high of Rs. 3116.40 and dropped by 4%. Currently the stock price is Rs. 3119.70 and down by 145.75 points or 4.46%. The market cap of TCS is Rs. 1,141,514 crore.

Most of the analysts have now revised downward TCS’s earnings estimates, due to fear of potential U.S. recession, forex volatility, and continued supply-side challenges. On the other hand, the company’s management is optimistic about future growth. According to the management the demand for technology remains ‘robust’. And the company has also not seen any footprint of the recession on the demand side. According to the chief executive officer and managing director Rajesh Gopinathan the company is seeing steady demand from immediate conversations with the customers. And the company is constantly polling to see if there are any early indications of softening .

The shares of TCS traded over the counter worth Rs. 15.9 crore i.e 0.5 lakh shares , compared with a two-week average volume of 0.76 lakh shares. The BSE Sensex was trading 324 points lower at 54,158 levels.

The shares of TCS traded lower than its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages. TCS has recorded negative return of 2.5% in the past one year. This led to the underperformance of the BSE Sensex by 6%. The large cap stock is 3% away from its 52-week low of Rs.3,023.35 touched on June 17, 2022. The IT major hit a 52-week high of Rs. 4,045.50 on January 18, 2022.

 

TCS profit misses estimates as recession fears hit IT spending.
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RBI expects Inflation to cool from October.

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Business, Editorials, Equities, Expert Opinions, Market News, Markets - July 10, 2022

Adani Wilmar enters the coveted large-cap category by AMFI

 

Adani Wilmar enters the coveted large-cap category by AMFI

On 5th July 2022, the Association of Mutual Funds of India (AMFI) declared its semi-annual categorization of stocks which takes into consideration data from January 2022 to June 2022.

The Association of Mutual Funds of India (AMFI) classifies all listed companies into large-cap, mid-cap, and small-cap, on a semi-annual basis. Active equity fund managers build their portfolios based on AMFI’s stock categorization on.

According to the stock categorization by the Association of Mutual Funds of India (AMFI), shares of the Life Insurance Corporation of India (LIC) and Adani Wilmar were classified as large caps. AMFI has also classified shares of Adani Power, Cholamandalam Investment and Finance, Bank of Baroda, Hindustan Aeronautics Ltd (HAL), and Bandhan Bank as large-cap from the mid-cap category.

 

New large-cap additions:

On the new listing, the market cap for the large-cap is Rs. 475,000 Cr. Stocks such as Adani Power, Cholamandalam Investment and Finance, Bank of Baroda, Hindustan Aeronautics, and Bandhan Bank have been upgraded from mid-cap to large-cap. Currently, the market cap of Adani power is Rs. 1,01,533 Cr. And its market price is Rs. 263. Additionally, Adani Wilmar is also added to the large-cap category with a market cap of Rs. 76,161Cr and CMP Rs. 582. LIC has been upgraded to a large-cap and recorded a market cap of Rs. 444,425 Cr. And the current market price is Rs. 702.65. The market cap of Cholamandalam Investment and Finance (CMP Rs. 643), Bank of Baroda (CMP Rs. 98.65), Hindustan Aeronautics (CMP Rs. 1759), and Bandhan bank (CMP Rs. 273.45) are Rs. 52,822 Cr, Rs. 51,015 Cr, Rs. 58,820 Cr, Rs. 44,046 Cr. respectively.

 

New mid-cap additions:

AMFI has moved IDBI Bank, HDFC AMC, Godrej Properties, Steel Authority of India (SAIL), Zydus Lifesciences, Jubilant Foodworks, and PB Fintech (Policybazaar) from large-cap to mid-cap category. The market cap for mid-caps is Rs 164 billion. The stocks that have been added mid-cap category are Vedant Fashions with market cap of Rs. 24,335 Cr. and CMP Rs. 1003, and Delhivery with market cap of Rs. 36,772 Cr. and CMP Rs. 507.55. Some stocks have been upgraded from small-cap to mid-cap category. These include Tata Tele Maharashtra, KPR Mill, Tanla Platforms, Poonawala Fincorp, Phoenix Mills, SKF India, and Chambal Fertilizers.

 

New small-cap additions:

Stocks that have been downgraded from mid-cap category are AGS Transact Technologies, UMA Exports, Veranda Learning, Hariom Pipes, Campus Activewear, Rainbow Children’s Medicare, Prudent Corporate Advisory Services, Venus Pipes, Paradeep are added to the small-cap category. Moreover, Nuvoco Vistas, Aditya Birla AMC, UCO Bank, Natco Pharma, GR Infraproejects, Indiamart Intermesh, Happiest Minds, Ajanta Pharma, and Sanofi India.

To make sure a consistent investment universe for equity mutual fund schemes, AMFI categorizes stocks into large-cap, mid-cap, and small-cap. However, a change in the category doesn’t need to result in inventory entries. The equity fund managers find the newly added and upgraded to large-cap stocks more attractive.

As per the AMFI, about 74% of newly listed stocks were classified as small-cap.

The market cap of the top 100 large-cap stocks declined to 68.8% from 71.4% in the July review. However, the market cap of mid-cap stocks which starts from 101 to 250, increased to 16.9% as against 16.2% in the last review. In the previous review, the market cap of small-cap stocks was 12.29% which increased to 14.3% .

 

After the stock categorization by AMFI, Adani Wilmar declined by 0.92% i.e from Rs. 582.05 to Rs. 576.70. Similary Adani Power also slipped from 262.75 to Rs. 262.70 which is 0.02%. However, stocks such as LIC, Bank of Baroda, Vedant Fashions have been increased by 0.04%, 0.81%, 1.16% respectively. Hindustan Aeronautics Ltd which is upgraded from mid-cap to large-cap fell by 0.68%. Even though some stocks have been upgraded by the AMFI there is a fall in the some stocks.

 

 

 

 

 

Stock Categorization by the AMFI
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Investing in Real estate.

 

 

 

 

 

 

 

 

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Tarsons Products earned Rs. 29 crores in net profit.
Commodities, Currency, Equities, Market News, Markets - July 7, 2022

Market update: 07th July 2022.

Market update: 07th July 2022. 

Overall performance:

Today as the market closed, SENSEX was up by 427.49 points or 0.80%, closing at 54178.46 and NIFTY was up by 143.10 points or 0.89%, closing at 16132.90. While the S&P BSE small-cap index closed at 25,568.55 and increased by 328.87 points or 1.30%. NIFTY Bank increased by 1.74% or by 596.05 points and closed at 34920.30. Similarly, Nifty IT also surged by 0.67% or 188.70 points and closed at 28196.30

The most active stocks traded today were Reliance, Titan Company, HDFC, and Tata Steel closed at Rs.23,88.10, Rs.127.50, Rs.1395.80, and Rs.900 respectively.

 

Global Indices and Commodities:

When the Indian market closed, DAX was trading at 12,776.97 up by 189.246points or 1.42%. NASDAQ was trading at 11361.85 and up by 39.61 points or 0.35% and CAC was trading at 4,5998.95, increased by 1.53% or 90.70 points. Currently, Gold is trading at 50,651 and increased by 151 points and 0.30%, and Silver is trading at 57,247 and gained 0.92%. Crude oil is trading at 7900, increasing by 1.73%.

 

Currency:

Currently, USD is trading at Rs 79.17, declining by 0.13%. EURO was trading at Rs 80.79 and increased by 0.36%. 

Sector-wise performance:

Today, almost all other sectors ended on a positive note. The IT Services & Consulting Service sector increased by 0.81%. However, some stocks in this sector fell, which are Affle India and Bartronics. Sectors such as Finance, Households, Paints, and Pharmaceutical increased by 7.57%, 9.93%, 4.79%, and 2.49% respectively. The oil exploration and production sector fell by 3.12%.

Top 5 gainers:

The top 5 gainers today were Titan Company, Tata Steel, Larsen, and Induslnd Bank, M&M. Titan Company (CMP Rs.2127.50), and Tata Steel (CMP Rs.900) increased by 5.66% and 4.88% respectively. The current market price of Larsen is Rs. 1611.10 and gained 3.53%. IndusInd Bank was up by 2.92% and closed at Rs.861.00. M&M gained by 2.60%. The CMP of the company is Rs.1133.30

Top 5 losers:

Today, the top 5 losers were Dr Reddys Labs, Nestle, Bharti Airtel, Reliance, and Bajaj Finance. Dr Reddys Labs (CMP Rs. 4,338.35) declined by 1.29% and Nestle (CMP Rs. 18,187) by 1.14%. Bharti Airtel closed at Rs. 686.65 and slipped by 1.05%. Reliance decreased by 1.01%. The closing price was Rs. 2387.65 as against the previous closing price of Rs. 2411.95. Bajaj Finance closed at Rs. 5859.90 and fell by 0.98%

Stock in news: 

Titan Company’s first-quarter sales jumped by 205% year on year basis. The closing price of Titan Company was Rs.2127.50 as against the previous closing price of Rs.2013.55. The price increased by 5.66%. The board of PBA Infra approved the voluntary delisting of shares of the company from NSE. The company’s share price fell by 2.61% and closed at Rs. 13.05. Deep IND received a Letter of Awards from ONGC. The company’s share price rallied from Rs.188.45 to Rs.198.50. The price increased by 5.33%.

Market update: 07th July 2022. 
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Adani Wilmar enters the coveted large-cap category by AMFI

 

 

 

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