CLSA expects a 55 percent upside in PB Fintech, but…

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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[wealthdesk shortname=”PB Fintech” isinid=”INE417T01026″ bseid=”543390″ nseid=”POLICYBZR” sector=”Multiline Insurance & Brokers” exchange=”nse”]

Broking firm CLSA has initiated coverage on PB Fintech, the owner of online insurance and credit comparison portals Policybazaar and Paisabazaar with a buy recommendation.

CLSA’s price target of Rs 600 implies a potential upside of nearly 55 percent from Tuesday’s closing levels.

However, the stock will still remain 40 percent below its IPO price of Rs 980, even if it manages to achieve CLSA’s projected price target.

The brokerage sees PB Fintech as a key beneficiary of the growing share of online insurance distribution. The firm expects the broader insurance industry to grow at an above-average compounded annual growth rate (CAGR) of 10 percent over the next 15 years.

Through Policybazaar, PB Fintech handles over 90 percent of the online insurance sales by third parties.

CLSA expects PB Fintech to deliver a 38 percent compounded growth rate in premiums until financial year 2026. For the same period, it also expects contribution margin to expand to 32 percent from the current 24 percent. The growth in premiums is also likely to aid a 37 percent compounded revenue growth until financial year 2026.

The brokerage is expecting the currently loss-making PB Fintech to break even by the second half of financial year 2024 and to have a Profit Before Tax (PBT) worth Rs 600 crore by financial year 2026.

Despite some bullish commentary from CLSA, some long-term challenges still remain with the company. The company has requested Insurance Regulatory and Development Authority (IRDAI) to allow them to reduce commission rates, while seeking allowance on matching lower commissions as Bima Sugam, sources informed CNBC-TV18.

IRDAI had proposed the formation of Bima Sugam, an aggregator-like platform for insurance sales and related services. Industry feedback suggests that this platform is likely to charge commissions at a much lower rate than current levels.

Insurance aggregators could face the heat with the entry of Bima Sugam, which will be responsible for sales, servicing, and claims of insurance policies, possibly everything that Policybazaar does.

Even CLSA has highlighted exclusion from the IRDAI-proposed insurance exchange platform as a key risk to their estimates on PB Fintech. Competition from superapps has been highlighted as another risk.

Shares of PB Fintech opened higher but gave up all the gains to currently trade 1.7 percent lower at Rs 381.80.

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Koo said to be the second largest microblogging platform in the world now

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Koo has said that it is now the second-largest microblogging platform in the world. Koo said the platform now stands second only after Twitter in terms of user downloads and is the only Indian microblog competing with other global microblogging platforms such as Gettr, Truth Social, Mastodon, Parler, and others.

“We will continue to invest in our product with a user-first mindset and further drive digital independence for users in India and around the world,” founder-CEO Aprameya Radhakrishna said in a statement.

“Today, Koo is the second largest micro-blog in the world. Given the changes happening in the micro-blogging landscape globally, we are looking to expand our wings to geographies where fundamental rights are being charged for. We believe that such fundamental tools on the internet should not come at a cost. We are very excited about inviting a larger global audience to this proudly ‘Made in India’ product,” Mayank Bidawatka, co-founder of the platform, said.

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While Twitter made news for firing almost 50 percent of its workforce and handling its layoff in terrible fashion, Koo has also gone for layoffs earlier last month. Koo said in Spetember that it had laid off 5 percent of its workforce (15 employees) and not 40 as reported in the media earlier.

In a fresh statement to the news agency IANS, Koo said that 15 positions “were made redundant due to performance issues”. “This is completely aligned with the industry standards of hiring and retrenchment. Koo continues to hire talent in its monetisation, product and engineering team,” a company spokesperson said.

To make the platform unique, Koo has offered features like Multi-Language Kooing (MLK), topics in 10 languages, language translations, edit functionality, multiple profile pictures, voluntary self-verification, and so on. Shortly, the platform aims to announce more features.

Koo is a three-year-old platform available to users from over 100 countries, including the United States, the United Kingdom, India, Iran, Singapore, Canada, UAE, Nepal, and others. 

Koo is currently available in 10 languages in India: English, Hindi, Marathi, Bengali, Kannada, Tamil, Telugu, Gujarati, Punjabi, and Assamese. The platform claims to have over 50 million downloads and is actively leveraged by over 7,500 eminent personalities across politics, sports, media, entertainment, spirituality, and art and culture.

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Donald Trump files paper for 2024 US presidential election: A look at 5 ongoing cases against him

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Even as former US President Donald Trump announced his bid to run for the 2024 US Presidential Election, a number of high-profile investigations involving him could impact his political ambitions. Trump announced on Wednesday that he was running for the 2024 US presidential elections. The former president filed the White House candidacy papers with the US election authority before formally declaring his candidacy at an event on November 15.

“America’s comeback starts right now,” Bloomberg quoted the 76-year-old former president as telling his supporters at his palatial Mar-a-Lago residence in Florida.

With the announcement, Trump became the first major contender from both the Republican and Democrat parties to formally declare their candidacy.

As the business tycoon prepares to run for the White House again, here’s a look at the top cases against Trump since he lost the presidential battle in 2019.

Mar-a-Lago documents

The US department of justice is investigating whether government documents from the White House were illegally removed and taken to his Mar-a-Lago estate in Florida after he left office. A federal grand jury in Washington was empaneled which interviewed potential witnesses on how the former President handled the documents.

According to the National Archives, which is in charge of collecting and sorting presidential material, at least 15 boxes of White House records were recovered from the Mar-a-Lago estate, including some classified records.

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Destruction of documents from the White House or their unauthorised retention could violate a criminal law, CNN reported quoting legal experts.

Trump has denied any wrongdoing and called the investigation by the justice department “politically motivated”.

Capitol riot

A number of US Capitol Police and Washington, DC, Metropolitan Police officers have sued Trump for allegedly inciting the attack on the US Capitol on January 6, 2021. On January 6 a mob of Trump’s supporters stormed the Capitol building to prevent the confirmation of President Joe Biden’s election victory.

The various cases accuse the former President of directing, aiding and abetting assault and battery and violating the local laws of Washington, DC, which prohibit incitement of riots and disorderly conduct.

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In February this year, a federal judge allowed the lawsuit of the police officers to proceed, saying Trump’s statements to his supporters prior to the attack are “the essence of civil conspiracy”. Till now, Trump and his advisers have not been charged with any crimes even as the former President denied responsibility for the riot.

Georgia results

Prosecutors in the state are investigating the alleged attempts by Trump and his allies to overturn 2020 presidential election result in Georgia.

The probe was launched in 2021 after the disclosure of an hour-long call between Trump and Georgia secretary of state Brad Raffensperger on January 2, 2021, in which Trump is heard pushing the Republicans to “find” votes to overturn the election results.

“I just want to find 11,780 votes,” BBC quoted Trump as saying during the call to Raffensperger. Trump was referring to the number of ballots required to give him victory in the swing state.

The allegations are very serious and those indicted and convicted stand a chance to face prison sentences, Fulton County, Georgia, District Attorney Fani Willis told Washington Post recently.

Fake GOP electors

The US department of justice is also investigating an aspect of a plot to field fake Republican Party electors in 2020 from seven states.

According to the case, fake certificates were created by Trump allies in the seven states of Arizona, Georgia, Pennsylvania, Michigan, Nevada, Wisconsin and New Mexico in order to replace valid presidential electors with a pro-Trump slate.

Tax trial

Prosecutors in New York are examining a case related to the Trump Organisation, a business owned by the former president’s family. At present, there are two ongoing investigations in New York — one civil and the other criminal.

The civil investigation includes alleged overstating of the value of real estate like hotels and golf courses to get favourable loans and better tax rates.

The criminal investigation is looking into the same issue relating to operations in New York City.

Two entities under Trump Organisation have been charged with nine counts of tax fraud, grand larceny and falsifying business records

Former chief financial officer of Trump Organisation Allen Weisselberg pleaded guilty for his role in defrauding tax authorities, while the company pleaded not guilty.

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Watch | Hardik Pandya and Kane Williamson unwind on a ‘crocodile bike’ ahead of NZ vs IND T20 series

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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India’s T20I stand-in captain Hardik Pandya and his New Zealand counterpart Kane Williamson enjoyed a ‘crocodile bike’ ride in Wellington on Wednesday.  Team India is touring New Zealand for a three-match T20I series followed by a three-match ODI series.

Regular captain Rohit Sharma has been rested for the New Zealand tour and Hardik Pandya has been made in charge of the T20I team while southpaw Shikhar Dhawan will lead the ODI team against the Blackcaps.

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Both the teams have very little time to unwind after the gruelling T20 World Cup which ended this Sunday. Both teams lost out in the semifinals and will be looking to find some answers to their problems in this series.

Before the T20I series which gets underway on November 18 in Wellington, Pandya and Williamson were spotted in the city for a photoshoot. During the photoshoot, the two skippers enjoyed the iconic Crocodile Bikes of the city.

 

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The  Crocodile Bikes are famous in Wellington as the tourists use them to explore and cruise around the waterfront from Oriental Bay to Kumutoto.

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Ahead of the series Pandya spoke to BCCI.tv and said “A lot of the main guys are not here but at the same time, the players who are here have also been playing for India for a good amount of 1-1.5 years. Even they have had ample chances, and enough time in international cricket to express themselves and showcase what they have. Very excited for them, new bunch and new energy,”

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Max Life Insurance launches ‘Smart Wealth Advantage Guarantee Plan’ — Key features and benefits here

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Max life Insurance on Wednesday launched the ‘Smart Wealth Advantage Guarantee Plan’. This is a non-linked, non-participating individual life insurance savings plan that offers guaranteed returns, life insurance cover and tax benefits. The plan allows the customer to choose the date of guaranteed income payouts on special days like birthdays or marriage anniversaries.

How the plan works?

The plan offers flexibility to ensure customisation as per the life stage and enhanced protection through a unique policy continuance benefit that ensures that policy becomes self-funded in case of the policyholders’ demise, said
V Viswanand – Deputy Managing Director, Max Life Insurance  while talking exclusively to CNBC-TV18.com.

“We have done extensive research with customers and sellers to identify key opportunity areas like flexibility, liquidity and the need for enhanced protection that are all addressed through this unique proposition. We have also enabled a unique benefit structure where a customer can choose to get guaranteed income starting the first-month post-premium payment,” he said.

What exactly is a guaranteed plan?

A guaranteed plan is a life insurance plan that offers pure protection and assured maturity returns.

These plans are offered by the insurance companies in which policyholders need to pay a fixed premium on a monthly or yearly basis during the plan’s tenure.

After the policy matures, they start receiving guaranteed returns on your investments.

Should guaranteed plans be a part of one’s investment portfolio?

Having a balanced and diversified approach to savings and investment is very critical, said Viswanand.

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“The guaranteed plans from life insurance companies offer a unique opportunity to lock in attractive guarantees over long durations. This not only ensures long-term guaranteed wealth creation but also helps diversify your investment portfolio and act as a safety net against the volatility of stock markets,” he said.

Additionally, these plans provide financial stability and offer convenient and flexible options to earn regular income.

In addition to the advantage of assured income or lump sum payouts, they also offer comprehensive financial protection against the risk of death, disease and disability, thus making them a holistic addition to one’s investment portfolio.

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Fashion designer Tom Ford to become a billionaire post $2.8 billion deal with Estee Lauder

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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The Estee Lauder Cos is acquiring luxury powerhouse Tom Ford in a deal valued at $2.8 billion, marking the beauty firm’s biggest acquisition yet. As part of the deal announced Tuesday, Ermenegildo Zegna Group and Marcolin S.p.A. will enter long-term license agreements for Tom Ford fashion and Tom Ford eyewear, respectively.

According to the estimates by Forbes, Tom Ford, the founder of the eponymous luxury brand, who reportedly owns 61 percent stake in the company, will become a billionaire post the transaction. Ford is expected to receive nearly $1.1 billion in cash from the acquisition leading to an aggregate net worth of $1.2 billion.

While Estee Lauder said the deal values the total enterprise at $2.8 billion, the New York-based beauty company is expected to pay roughly $2.3 billion, after a $250 million payment from Italian eyewear manufacturer Marcolin SpA.

The purchase, subject to regulatory approvals, is slated to close in the first half of 2023.

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Under the agreement, Tom Ford, founder and CEO of Tom Ford International, will remain the brand’s creative visionary through the end of 2023. Domenico De Sole, chairman of Tom Ford International, will stay on as a consultant until that same time.

Estee Lauder introduced its Tom Ford Beauty line in 2006. In Estee Lauder’s fiscal year that ended June 30, the brand’s net sales grew nearly 25 percent compared to the prior year. The beauty company said that in the next few years it expect the beauty line to bring in net sales of $1 billion.

“This strategic acquisition will unlock new opportunities and fortify our growth plans for Tom Ford Beauty,” said Fabrizio Freda, president and CEO of Estee Lauder in a statement. “It will also further help to propel our momentum in the promising category of luxury beauty for the long-term, while reaffirming our commitment to being the leading pure player in global prestige beauty.”

Estee Lauder said it aims to finance the acquisition through a combination of cash, debt and $300 million in deferred payments to sellers that become due beginning in July of 2025.

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With agency inputs

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Nykaa shares drop 13% in two trading sessions post multiple block deals

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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[wealthdesk shortname=”FSN E-Co Nykaa” isinid=”INE388Y01029″ bseid=”543384″ nseid=”NYKAA” sector=”Miscellaneous” exchange=”nse”]

The shares of FSN e-Commerce Ventures Ltd., the promoter of beauty products online retailer Nykaa, declined on Wednesday after multiple block deals that have taken place in the stock over the last two sessions.

Based on the data available on the exchanges, Segantii India Mauritius sold 33.7 lakh shares of the company on Tuesday at Rs 199.24 apiece. The firm had purchased nearly 38 lakh shares at Rs 171.75 apiece last week.

Hermes Investment Funds Public Ltd. Co. Emum was the buyer in the large trade on Tuesday, purchasing 25.8 lakh shares at Rs 198.48.

Multiple large trades have taken place on Nykaa in the recent past. Foreign investors have been looking to acquire shares after the stock went ex-bonus and its pre-IPO lock-in period ended last week. Here are some large deals earlier:

• Morgan Stanley bought 8,213 shares on November 11 at Rs 186.40.
• Norges Bank acquired 39.81 lakh shares at Rs 173.35 apiece on November 10.
• Aberdeen Standard Asia Focus fund purchased nearly 74 crore shares on November 10.

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Apple prepares to source chips from Arizona plant: Report

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Apple Inc is preparing to begin sourcing chips for its devices from a plant under construction in Arizona in the United States, Bloomberg News reported on Tuesday.

The company may also expand its supply of chips from plants in Europe, the report said, attributing it to remarks by Chief Executive Officer Tim Cook at an internal meeting in Germany with local engineering and retail employees.

Apple declined to comment when contacted by Reuters.

According to the report, Cook was likely referring to an Arizona factory that will be run by Taiwan Semiconductor Manufacturing Co, the world’s largest contract chipmaker and a major supplier to Apple.

Last year, TSMC said it had started construction at a site in Arizona where it planned to spend $12 billion to build a computer chip factory and planned to start volume production of chips using its 5-nanometer production technology in 2024.

Earlier this month, TSMC also said it was constructing a building that could serve as its second chip factory in Arizona.

The United States has been encouraging foreign tech firms to manufacture in the country and has actively supported local research, development and manufacturing after passing its CHIPS Act.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Who’s responsible for Poland blast? US officials now blame Ukraine’s retaliation to incoming Russian missile

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Initial findings suggest a missile that hit Poland was fired by Ukrainian forces at an incoming Russian missile, US officials were quoted by Associated Press as saying after an emergency meeting of G7 leaders was held over the incident in Indonesia. Two people were killed in an explosion in Poland’s Przewodow, a village in eastern Poland about 6 kilometers (3-1/2 miles) from the border with Ukraine, firefighters said.

Media reports said the strike hit a grain-drying facility. Ukraine and Polish authorities initially claimed that the explosions were caused by Russian-made missiles. However, US President Joe Biden said investigations showed it was “unlikely” the missile was fired from Russia.

Soon after the incident, leaders from the US, Germany, Canada, Netherlands, Japan, Spain, Italy, France and the United Kingdom participated in an emergency meeting. The US and its allies said they would investigate “exactly what happened” before deciding the next steps. They also decided to extend support to  NATO member Poland in its investigation into the blast.

Responding to the claims, Russia’s defence ministry denied that Russian missiles hit Polish territory, describing reports as “a deliberate provocation aimed at escalating the situation”. It added in a statement: “No strikes on targets near the Ukrainian-Polish state border were made by Russian means of destruction.”

Poland summoned Russia’s ambassador to Warsaw after the strike for an explanation.

Meanwhile, France urged “utmost caution” on the origin of a missile strike on NATO member Poland. It warned that “many countries have the same kind of weapons, so identifying the type of missile won’t necessarily identify who is behind it”.

(With inputs from agencies)

Catch G20 Summit LIVE Updates 2022, where world leaders had an emergency meeting.

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Will missile strike on Poland trigger an all out war? All your questions answered

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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The United States on November 15 said that it was investigating reports of a blast in NATO member Poland, which apparently resulted from stray Russian missiles, but Russia’s defence ministry was quick to deny it. The NATO member claimed that a Russian-made rocket killed two people in eastern Poland near Ukraine, and it summoned Russia’s ambassador to Warsaw for an explanation after Moscow denied it was responsible.

Later, US President Joe Biden called for an “emergency meeting” with G7, NATO leaders in Bali, Indonesia, as global leaders are in the country for the G20 meeting. Leaders from NATO members Germany, Canada, Netherlands, Spain, Italy, France and Britain attended, as well as non-NATO member Japan and representatives from the European Union.

Did Russia fire missiles at Poland?

US President Joe Biden said on Wednesday after the emergency meeting, “There is preliminary information that contests (whether the missile was fired from Russia). I don’t want to say that until we completely investigate it, but it is unlikely in the lines of the trajectory that it was fired from Russia, but we’ll see.”

The United States and NATO countries would fully investigate before acting, Biden said.

Russia denies it attacked Poland

Russia’s defence ministry denied that Russian missiles hit Polish territory, describing such reports as “a deliberate provocation aimed at escalating the situation”.

Kremlin spokesperson Dmitry Peskov said he had no information on an explosion in Poland. Latvian Deputy Prime Minister Artis Pabriks said the situation was “unacceptable” and it could lead to NATO providing more anti-aircraft defences to Poland and Ukraine.

Initial findings by US officials suggest that the missiles that hit Poland were fired by Ukrainian forces at incoming Russian missiles. Associated Press quoted US officials as saying that after an emergency meeting of G7 leaders was held over the incident in Indonesia. Two people were killed in an explosion in Poland’s Przewodow, a village in eastern Poland about 6 kilometers (3-1/2 miles) from the border with Ukraine, firefighters said.

Also read: NATO, G7 leaders support probe into Poland blast

What would happen if Russia deliberately attacked a NATO Nation?

As Russian military activity nears the Ukrainian border, the potential for direct confrontation between Russia and the alliance increases. Earlier, on March 13, Russian aircraft reportedly fired rockets at the Yavoriv International Center for Peacekeeping and Security, which is located 20 km from Ukraine’s border with Poland.

Mistakes do happen in all military organisations, something witnessed on 9 March 2022, when India accidentally fired a BrahMos missile originating from Sirsa, Haryana that crashed into Mian Channu, Khanewal District in Pakistan’s Punjab.

If such an event occurs between Poland and Russian forces in Ukraine, it’s unlikely that the Polish government would be convinced the missile launch had been a mistake, but would definitely initiate a high-level investigation, before acting on it.

Also read: Russian foreign ministry says reports of Sergey Lavrov’s hospitalisation ‘fake’

Polish officials sought to avoid inflaming the situation. Morawiecki called on all Poles to remain calm, and President Duda said there was no concrete evidence showing who fired the missile and that it was a one-off incident.

Biden told Duda in a call that Washington has an “ironclad commitment to NATO” and will support Poland’s investigation.

The Polish foreign ministry said the rocket fell on Tuesday afternoon on Przewodow, a village in eastern Poland about 6 kilometres (3-1/2 miles) from the border with Ukraine, killing two.

Collective defense and invocation of Article 5

According to the NATO treaty, “The principle of collective defence is at the very heart of NATO’s founding treaty. It remains a unique and enduring principle that binds its members together, committing them to protect each other and setting a spirit of solidarity within the Alliance.

“Article 5 of the treaty provides that if a NATO Ally is the victim of an armed attack, each and every other member of the Alliance will consider this act of violence as an armed attack against all members and will take the actions it deems necessary to assist the Ally attacked.”

(With inputs from agencies)

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow