Tag: Stocks

Delta Corp shares tank 8% after ace investor Rakesh Jhunjhunwala and wife trim stakes

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

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Delta Corp tanked over 8 percent on Monday after a report highlighted that ace investor Rakesh Jhunjhunwala and his wife Rekha Jhunjhunwala have been selling shares of the company throughout June.

The stock, however, pared losses and was trading 5.9 percent lower at Rs 173.35 on the BSE, at 1110 IST.

Also Read | Sharp fall in crude oil prices could be a trigger for market rally

The two reduced their stake in Delta Corp to 3.36 percent from 7.48 percent in March. They sold 75 lakh shares between June 1 and June 14, said a Moneycontrol report.

As of March 2022, Rakesh Jhunjhunwala owned 4.3 percent stake in the casino company while his wife Rekha Jhunjhunwala held 3.2 percent stake. The duo owned about 4.6 and 4.8 percent stake, respectively, as of December 2015.

Some fund managers are reading this as a mere profit-taking exercise and have pointed out that Rakesh Jhunjhunwala has also been reducing his stake in other companies like Titan.

On Friday, Delta Corp’s stock had soared about 12 percent after the company’s online poker and rummy gaming firm Deltatech Gaming filed its Draft Red Herring Prospectus with market regulator Securities and Exchange Board of India to raise funds through a Rs 550-crore initial public offering.

Meanwhile, the council of ministers recently recommended 28 percent goods and services tax (GST) on horse racing, casinos and online games, as per reports. This could have triggered selling in shares of Delta Corp, some market experts said.

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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

Bottomline: Look for high-yield stocks to hide

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

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If you are an equity investor and mostly invested, your portfolio is likely to have been brutally damaged. More so if you have invested in any midcaps or growth stocks with little earnings track record to support valuations.

Bear markets are very rational. They wipe out all the froth of bull phases and put the focus back on the basics of investing—valuation and growth. To protect your portfolio in a bear market, you need to ensure you are putting your money behind solid sound businesses with a track record of delivery and a potential to grow and win in the market.

THE FROTH IS GONE, MOSTLY

Gone are the days of expecting the market to give you lofty valuations based on perception or expectation. The new age businesses have been most severely punished. Zomato trades at Rs 50 a share, down from a high of Rs 169. Paytm is going for Rs 511, compared to a high of Rs 1,961. Even some richly valued consumer names have taken a beating. Jubilant Foodworks is down to Rs 490 from a high of Rs 915, while Restaurant Brands Asia (Burger King) is down to Rs 101 from Rs 190. The list goes on, and spans several sectors, including banking and IT services, two high-weight sectors in most institutional portfolios.

And while this is comforting for those looking to put money, there may be some more erosion ahead, as bear markets, like bull phases, tend to result in excessive divergences from fair values. So, stocks may get even cheaper from here before they get dearer.

THE HUNT FOR VALUE

When there is a bargain sale on in the market, the last thing you want to buy is something that’s of even mildly suspect quality. You don’t get to buy blue chips at bargain prices every day and when you can have those, why fill your basket with others. That said, it pays to evaluate if the many purported blue chips actually offer value.

In a quest to spot quality going cheap, we sifted through the BSE-500, applying some rigorous filters to try and narrow the search. The companies on the list should have had a positive cash flow in each of the preceding 4 years, their return on capital (ROCE) should have exceeded 10% in each of these years and they should have returned 12% or more on their equity (ROE). This set was further evaluated on an operating cash flow to market capitalization yield (based on FY22 cash flows). Here’s a bunch of stocks from the list with yields that are either already attractive or likely to get attractive, in case of a further slide.

Interestingly, recent beneficiary of the IPL mega bid Sun TV makes it to the list, even without this bounty. The two major two-wheeler makers, Bajaj Auto and Hero MotoCorp, also offer attractive yields despite having been through a rough patch last fiscal. In fact, given the valuations, this could be a good time to buy back shares, as Bajaj Auto has proposed. There is a bunch of top tier IT services stocks that are available at very attractive yields after the savage selling in tech stocks globally. Even traditionally premium valuation companies like Hindustan Unilever (HUL) and Jubilant Foodworks are offering some yield now. HUL has slipped to Rs 2,112 from its 52-week high of Rs 2,859, down 26 percent, while Jubilant has lost about 47 percent in value from its high.

A further slide in the market, the most likely scenario at present, will make many of these names even cheaper. Short point — there is value to be had in quality names in this market. And cherry-picking on a further slide would be a prudent long-term investment strategy, provided you are patient enough to wait for a year or two for payback.

Invest wisely.

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

Reliance stock takes a hit as CLSA says Bharti Airtel doing better than Jio in revenue share gain

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

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Shares of Reliance Industries (RIL) closed lower on Tuesday after CLSA said that the company’s sequential revenue market share (RMS) gains were lower than those of Bharti Airtel’s in the fourth quarter of the financial year 2022.

Revenue Market Share or RMS is the percentage of revenue of a firm to the total revenues of all telcos.

CLSA, analysing the latest Telecom Regulatory Authority of India (Trai) data, said that Bharti Airtel and Jio Infocomm saw sequential revenue market share gains in the March quarter due to the hike in tariff prices announced by the telcos in November and December last year.

Bharti Airtel’s RMS gain was the highest at 71 basis points (bps), taking it to 35.5 percent while Jio’s RMS gain was 37 bps, CLSA said. One basis point is one-hundredth of a percentage point.

However, Jio’s RMS still remains highest among telecom operators at 40.3 percent.

While the Reliance Industries stock closed 1.33 percent lower at Rs 2,627 per share on the BSE, the Bharti Airtel stock closed 1.63 percent higher at Rs 682 per share.

Beleaguered telecom company Vodafone Idea’s RMS was at around 18 percent, said CLSA. The stock closed 1.03 percent higher at Rs 8.80 per share on the BSE.

“The market share shift away from Vi continued in FY22, with the telco losing 2.4 percentage points (ppts) on-year of RMS to 18.2%, while Jio’s revenue share was up 1.6 ppt on-year to around 40%, and Airtel’s up 2.5 ppts on–year to 35% in FY22,” CLSA said.

Reliance Jio had announced a 20 percent hike in its prepaid tariffs beginning December 1, 2021. Whereas, Bharti Airtel and Vi (Vodafone Idea) had increased prepaid tariffs by 20-25 percent.

While CLSA has a positive view on RIL, its top pick in the space is Bharti Airtel.

Also Read | Some QSR stocks are looking tempting as India heads out to eat more frequently

“RJio tariff aggression, which was earlier aimed at gaining market share, has shifted as the leader has been raising tariffs successively with intervals to incumbents,” the brokerage house said.

“Bharti and VIdea entry tariffs at a mere 9 percent premium to Jio Phone will likely limit subscriber churn,” it added.

Catch up on all stock market highlights here.

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

PNB Housing Finance jumps 7% as Punjab National Bank to infuse Rs 500 crore

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

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Shares of PNB Housing Finance surged over 7 percent on Wednesday after the board of Punjab National Bank (PNB) approved infusing Rs 500 crore into the company. PNB will invest the amount by participating in the rights issue of PNB Housing Finance.

The shares of PNB Housing Finance, however, pared gains and closed 4 percent higher at Rs 343 per share on the BSE. The stock has been gaining for the last four sessions.

In the past one year, the stock has fallen close to 60 percent whereas year-to-date, the scrip is down 30 percent.

Also Read | New IPL media rights likely to see digital premium jump 2X but will it be a ‘winner’s curse’?

“…the Exchange is hereby informed that upon receipt of RBI approval, the Board of Directors has approved Bank’s participation in the proposed Rights Issue of PNB Housing Finance Limited (PNBHFL) for an amount up to about Rs 500 Crore, in order to retain Bank’s shareholding at 30 percent or below but above 26 percent,” the housing finance company said in an exchange filing.

A shareholding above 26 percent will help Punjab National Bank retain its status as the promoter of PNB Housing Finance.

Also Read | Checkout highlights of RBI policy here 

Separately, the board of PNB Housing Finance will meet on June 13 to consider and approve the issuance of non-convertible debentures aggregating up to Rs 2,000 crore on a private placement basis.

Catch up on all LIVE stock market details here.

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

PB Fintech shares nosedive nearly 14% after large deal on NSE

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

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Shares of PB Fintech nosedived nearly 14 percent on Tuesday after a large deal took place on the NSE. About 38.34 lakh shares, representing 0.85 percent equity stake, worth Rs 235.74 crore, changed hands on the stock exchange at Rs 615 per share.

At 11:50 am, the company’s shares were trading 13.76 percent lower at Rs 567.75 on the BSE. Year-to-date, the stock is down more than 36 percent.

The company had said in an exchange filing on Monday that it had received an intimation from Yashish Dahiya, Chairman and CEO of PB Fintech, for an intention to sell more than 37 lakh equity shares through bulk deals.

Also Read | Why tractors are getting all the love from Rural India but not FMCG products

Post the share sale, Dahiya’s stockholding would decline to about 4.6 percent from around 5.45 percent.

The PolicyBazaar parent said that the proceeds from this share sale will be used to make payment of current and future taxes.

“For avoidance of any doubt, there is no further sale of shares planned beyond these shares, at least for 1 year,” the company said in the exchange filing.

Catch up on all LIVE stock market highlights here.

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

LIC shares drop 3% as fewer policyholders pay renewal premium

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

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Shares of Life Insurance Corporation of India (LIC) slipped over 3 percent on Tuesday after the insurer announced its earnings for the March quarter with the persistency ratios witnessing a dramatic fall compared to last year.

Persistency ratio is the proportion of policyholders who paid their renewal premium, and the fall is an indication of them likely discontinuing their policies.

“A 5-6 percent fall in persistency ratio is a drastic one for LIC,” said Purvesh Shelatkar, head of institutional broking at Monarch Networth Capital.

Raj Kumar, MD of LIC, told CNBC-TV18 in an interaction that policyholders choosing to pay the premium after the due date can also be the reason for the persistency ratio being lower.

“Customer can pay the premium after the due date also within 30 days that is why persistency is lower. But we are looking at a long term stickiness of the customer and we are having the highest persistency at the 61st month which shows the stickiness and that adds to the profitability of the organisation,” Kumar explained.

At 1245 IST, shares of LIC were trading 2.5 percent lower at Rs 816.1 on the BSE.

LIC reported an 18 percent YoY fall in the standalone net profit at Rs 2,372 crore for the quarter ended March 2022.

The company’s net premium income increased to Rs 1,44,158.84 crore, up 17.88 percent from Rs 1,22,290.64 crore in the same quarter last fiscal.

The board of directors of LIC has recommended a dividend of Rs 1.50 per equity share with the face value of Rs 10 each for the year ended March 31, 2022. This is subject to the approval of the shareholders at the ensuing Annual General Meeting, it said.

Catch up on all LIVE stock market details here.

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

Experts recommend to hold Bajaj Finance, Asian Paints, and Titan; here’s why

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

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In an interaction with CNBC-TV18, Gaurav Ratnaparkhi of Sharekhan, and Vijay Chopra of enochventures.com shared their reading on specific stocks, sectors, and markets.

They spoke at length about Bajaj Finance, Asian Paints, Titan, Tech Mahindra, NTPC, CAMS, Supreme Industries, Dixon Technologies, Larsen & Toubro (L&T), and PVR.

Bajaj Finance, Asian Paints, Titan

Chopra: All the three companies are quality companies, but in the recent carnage we have seen that all major players and even the Nifty 50 companies have cracked. These companies have the capability of quickly coming back. So hold on to these stocks.

Ratnaparkhi: Bajaj Finance has seen a nice base formation recently and has given a nice breakout in today’s session. The target I would be watching for is Rs 6,500 from short-term perspective and medium-term target will be Rs 8,000. I would recommend to hold on the stock. Asian paint is at a good level where one can add more on the long side. Staggered buying can be done in the case of Titan and once the stock breaks out from the level of Rs 2,200 on the upside, it can pick up sharp momentum on the upside. So definitely hold on to all these three positions.

Tech Mahindra

Ratnaparkhi: Tech Mahindra, the stock can continue to do well going ahead in the short term as well as medium term. Short term momentum indicators suggest or to hold on to the position, definitely one should add at this current level.

Chopra: Tech Mahindra seemingly is not the best to be in the IT space. If somebody wants to be in IT space, be with TCS. TCS is the leader of the pack and would revive faster. But again, Tech Mahindra is a great company, keep on holding with a stop loss of Rs 1,050 and if at all, it consolidates and moves up, you have to wait a bit longer, but these companies would surely come up.

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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

Your Stocks: Experts’ take on holding Motherson Sumi, Whirlpool, Exide Industries

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

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In an interaction with CNBC-TV18, Rahul Mohindar of Viratechindia.com and Parthiv Shah of Tracom Stock Brokers shared their reading on specific stocks, sectors, and markets.

They spoke at length about Motherson Sumi, Intellect Design, Jubilant FoodWorks, Whirlpool, Exide Industries, Power Grid Corporation, and Poonawalla Fincorp.

Motherson Sumi

Shah: It is a company with a very strong management pedigree, and I feel that the current price factors in most of the negatives. If at all things tend to improve, probably we will see a massive recovery because of the automotive clients or the customer base that Motherson Sumi has. They are talking about better volume growth going ahead. So, I would suggest a hold.

Mohindar: After almost a 40 plus percent correction over this year itself, I think we are at, again, a strong support point. The 200-week moving average even comes in at Rs 110-115 level. I think this is not a point to attempt exiting or shorting. This is a point where you kind of watch and wait for a breakout. It is hard to time this, but there is evidence that this is a clear point where there could be a bit of price rotation and reversal. So, a clear hold from my side.

Intellect Design

Shah: Instead of Intellect Design, switch to a better name, maybe TCS or Infosys, after this recent correction. In terms of Intellect Design Arena being a mid-cap IT company with slightly elevated valuations, my sense is they will have major headwinds in terms of higher wage costs because this is an industry which is plagued with very high attrition rates. Also, there is a lot of competition in the verticals that they operate in.

Mohindar: I am worried again. In the short term, I have a target of about Rs 510 on the stock. So for me, it is really in a sell mode, particularly if I am looking at the short term. If you are looking at switching, I would agree to try and go into frontline IT stocks. But again, coming right into Infosys and TCS right now would not be prudent. If we get another 5 or 6 percent decline on those frontline heavyweights, that is when I would try and time it better.

Whirlpool

Mohindar: I think Rs 1,440 is the key support. The stock is already on a downtrend. Keep in mind that we are not too far away from those levels. So. this is really, again, a point where you may consider holding on but keep a clear stop loss below that Rs 1,440.

 Shah: I think very frothy valuations and what we are seeing is that the margins are almost halved thanks to the fact that the raw material input cost has been very heavy and there has been a lot of competition in the white good space, which is also creating a lot of issues for players like Whirlpool. I would again suggest a hold or do not add here because there could be some downside.

 Exide Industries

Shah: Exide Industries is quoting at reasonable valuations, and thanks to the fact that the zinc and the lead prices have started coming off, I think that should be helpful towards sustaining the margins. Also, they have massive plans in investments in the lead and even the lithium-ion battery space, which should give some traction. They have a very strong balance sheet thanks to the fact that they exited their Exide Life business, which as and when they start monetizing their balance sheet will be very cash-rich, and they will be able to invest in your business prices. So certainly hold on to Exide Industries.

 Mohindar: Exide likely to see Rs 130 in my opinion, so again, short-term looks a little difficult to me. I would keep the stock on a sell even now.

Watch video for more

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