Author: Akanksha Upadhyay

Axis Capital dubs new Royal Enfield ‘much ado about very little’; Eicher Motors trades lower

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

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Eicher Motors shares were trading in the red in the initial trading hours on Thursday after the company reported a 9 percent decline in motorcycle sales for August 2021 at 45,860 units. The company had sold 50,144 units in the same month a year ago.

The maker of Royal Enfield (RE) motorcycles said that while sales of models with engine capacity up to 350cc declined 17 percent to 38,572 units during August, sales of models above 350cc capacity soared 92 percent to 7,288 units.

Axis Capital maintained a ‘sell’ call on Eicher Motors terming the new Royal Enfield Classic 350 ‘much ado about very little’. The target price for Eicher’s stock remained unchanged at Rs 2,050.

Also Read: Eicher Motors re-appoints Siddhartha Lal as managing director with effect from May 1

According to the brokerage, despite not making any significant changes in design – given the cult following of the Classic 350 model, and the engine, suspension, brake, and chassis similar to the Meteor 350cc model – some of the standard features in Meteor and Honda H’ness 350 are missing.

The brokerage is of the view that the launch accentuates the difficulty that Royal Enfield will face in differentiating new launches given largely similar specs and a narrow price band.

Axis Cap also believes that the sustained success of Classic 350 is critical for Royal Enfield’s ambitions. The brokerage noted that from a peak monthly run rate of 45000 units in FY18, the volume of Classic 350 has come down to ~30000 units in FY21. It also noted that the fall is impacted by a general slowdown in the 2W industry and muted demand from the replacement segment. This is closely followed by customers postponing purchases ahead of the new launch and supply chain issues at RE.

Also Read: Eicher Motors Q1 results: Net profit at Rs 237.1 crore; rises 12.9% above estimates

The brokerage sees downside risks if the new model fails to create enough excitement or if there is higher cannibalisation of other models.

Eicher’s performance has been disappointing on both volumes and profitability over the past 3-4 years and the significant premium valuations are unjustified. The brokerage thus reiterates ‘sell’ for the stock.

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

Axis Bank hits new 52-week high; partners with BharatPe for PoS service

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

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Shares of Axis Bank hit a 52-week high during the morning trade on Wednesday on the BSE after the stock jumped four percent. In the last three days, the stock has gained more than eight percent and was trading at Rs 817.90, up 4.01 percent.

Earlier this week, the private lender said that it has begun selling debt instruments as part of a Rs 35,000-crore debt-raising strategy.

The bank’s board of directors authorised a capital-raising proposal in April that included issuing different debt instruments in Indian or foreign currency in domestic/international markets in one or more tranches, raising up to Rs 35,000 crore.

The shareholders of the bank had approved the proposal in the bank’s annual general meeting in July. “The bank has initiated the process of issuing of the debt instruments, in the form of the additional tier 1 notes (notes) in foreign currency, subject to market conditions,” Axis Bank said in a regulatory filing.

Axis Bank has also partnered with payments app BharatPe to grow its merchant acquiring business in India. Axis Bank will be the acquiring bank for BharatPe’s point of sale (PoS) service, BharatSwipe, and will provide acceptance of credit and debit cards for merchants affiliated with BharatPe as part of the agreement.

Yes Securities has ‘buy’ call on Axis Bank with a target price of Rs 822 while Edelweiss has ‘buy’ call on Axis Bank with a target price of Rs 840.

At 11:20 am, shares of Axis Bank were trading 2.30 percent higher at Rs 804.50 apiece on the BSE.

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

Titan shares hits 52-week high; CFO says will benefit from HUID for gold hallmarking

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

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Shares of Titan Company Ltd rose close to two percent on Tuesday to clock a 52-week high of Rs 1904.55 on the BSE. Titan CFO Ashok Sonthalia told CNBC-TV18 that Titan has been preparing for gold hallmarking and stands to benefit from it.

The Hallmarking Unique ID (HUID) process for gold hallmarking has some challenges, as it requires holding 5-7 days of more inventory, Sonthalia said. Unorganised players are facing some issues with gold hallmarking, he added.

Sonthalia also said the company’s jewellery and eyewear businesses have returned to a growth phase. Though the stores haven’t been fully operational yet, digital and omnichannel have supplemented sales. (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

Paper stocks gain, JP Paper up 3% as anti-dumping duty on uncoated paper copiers to continue

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

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Shares of JK Paper – India’s largest producer of branded papers and a leading player in Coated Papers and High-end Packaging Boards – was trading 3.02 percent higher during afternoon trade on the BSE after the government said the anti-dumping duty on uncoated paper copiers will be continued.

Most paper stocks moved higher – West Coast Paper Mills was up 2.56 percent, Seshasayee Paper & Boards Ltd 0.93 percent, Satia Industries 1.61 percent, Emami Paper Mills 3.89 percent and Astron Paper 1.70 percent.

“It is a positive trigger for many paper companies but it was largely expected so we can see some profit booking after the initial reaction. The outlook for paper stocks is still bullish but investors should be cautious while choosing companies in this bull run. JK Paper will remain our top pick on the back of quality and a strong growth outlook,” said Santosh Meena, Head of Research at Swastika Investmart.

JK Paper reported its quarterly net profit at Rs. 97.71 crore in June 2021, up 290.06 percent from Rs. 25.05 crore in June 2020. Net sales stood at Rs 661.52 crore in June 2021, up 42.7 percent from Rs. 463.59 crore in the same period a year ago.

Catch our live market updates 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

Bharat Forge, Sona Com & Sandhar Tech shares are on a roll. Here’s why

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

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Shares of three Indian auto component suppliers have gained during morning trade on Monday on the BSE after reports that Tesla Inc is in talks with them as part of its plans to enter the local market.

While Sona Comstar was up 5.29 percent, shares of Bharat Forge were up 5.14 percent and Sandhar Technologies were trading 11.62 percent higher on the bourses.

According to an Economic Times report citing people familiar with the matter, Tesla is seeking critical electrical, electronic and mechanical components including instrument panels, windshields, differential brakes, gears and power seats.

Sona, Sandhar and Bharat Forge are among the Indian companies already supplying components to Tesla.

Tesla CEO Elon Musk in July said that its electric vehicle (EV) company wants to launch cars in India, but the country’s import duties on EVs are the highest in the world by far which is also not consistent with India’s climate goals.

According to another ET report, Sona Comstar has also earmarked a capex of around Rs 600 crore for the current fiscal as it remains positive about sustaining its growth trends in the current fiscal and beyond.

At 10:40 am, Bharat Forge shares were trading 3.53 percent higher at Rs 755.15 while Sona Comstar shares were trading 5.97 percent up at Rs 502.35 and shares of Sandhar Technologies were trading 11.49 percent higher at Rs 289.25 apiece on the BSE outperforming the benchmark Sensex which was trading 1.06 percent up.

Catch our live market updates 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

Ujjivan SFB shares trade lower after bank appoints Carol Furtado as OSD

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

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Shares of Ujjivan Small Finance Bank were trading in the red on the BSE on Thursday after the bank’s board said it approved the appointment of Carol Furtado as the ‘Officer on Special Duty (OSD)’.

Furtado will be leading the charge of handling the day-to-day operations of the bank from August 26, 2021, and will be serving the bank as ‘OSD’ until outgoing MD & CEO, Nitin Chugh is in office.

“She has been authorised to exercise such powers and perform such functions on behalf of the bank, which was granted and was being exercised by Nitin Chugh in his capacity as Managing Director and CEO of the bank. Post-September 30, she will take charge as the Interim CEO, subject to the RBI approval,” the bank said in a statement. (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

Infosys plans to open new digital development centre in Canada; shares trade positive

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

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Shares of Infosys Ltd were trading positive on Thursday, a day after the IT services major on Wednesday said it will set up a new digital development centre at its largest Canadian office in Mississauga. The move is expected to help in creating 500 high-quality jobs in the Toronto region over the next three years.

Infosys had previously stated that by 2023, it will double its Canadian workforce to 4,000 employees. This expansion will be aided by the digital development centre.

Infosys has generated thousands of jobs in Toronto, Vancouver, Ottawa, Montreal, and, most recently, Calgary in the last two years.

This digital development facility, which spans almost 50,000 square feet and represents a substantial investment from Infosys in Canada, will teach, upskill, and reskill people in the technologies required to help the country’s businesses speed their digital transformation.

On Wednesday, Infosys become the fourth company in India to enter the $100 billion club in terms of market capitalisation. Infosys shares had touched a record high of Rs 1,739.20 on the BSE, helping the country’s second-largest IT services exporter touch a market value (mcap) of Rs 7.45 lakh crore ($100.64 billion).

(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

Infosys gains after Income Tax portal access restored; all eyes on Fin Min meeting

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

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The shares of Infosys Ltd were trading almost one percent higher during the morning trade on the BSE after the Union Ministry of Finance summoned Infosys Chief Executive Officer Salil Parekh on Monday to explain why the Income Tax Department’s e-filing site has been plagued by problems for more than two months after its launch.

The firm will meet with Finance Minister Nirmala Sitharaman for the second time to discuss the IT portal issues.

Ministry of Finance has summoned Sh Salil Parekh,MD&CEO @Infosys on 23/08/2021 to explain to hon’ble FM as to why even after 2.5 months since launch of new e-filing portal, glitches in the portal have not been resolved. In fact,since 21/08/2021 the portal itself is not available.

— Income Tax India (@IncomeTaxIndia) August 22, 2021

The Infosys-developed tax site went live on June 7 with a slew of additional features for taxpayers. After a competitive bidding procedure, Infosys was awarded the contract in 2019 for Rs 4,242 crore with a goal to create a next-generation income tax filing system.

The new website seeks to cut tax return processing time from 63 days to one day and expedite refunds.

However, hours before the meeting, the new income tax portal was restored after emergency maintenance.

The emergency maintenance of the @IncomeTaxIndia portal has concluded and the portal is live. We regret any inconvenience caused to taxpayers.

— Infosys India Business (@InfosysIndiaBiz) August 22, 2021

At 10 am, the shares of Infosys Ltd were trading 0.81 percent higher to Rs 1747 apiece on the BSE.

For more on the Finance Ministry – Infosys CEO meeting, watch the video

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

Ujjivan SFB announces 4 additional directors; says MD & CEO Nitin Chugh’s resignation a surprise

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

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Ujjivan Small Finance Bank in a concall on Friday said that Managing Director and Chief Executive Officer Nitin Chugh’s resignation came as a bit of a surprise for the company. The lender also said that over the last few months, the bank has been working hard to strengthen the board, however, Chugh’s resignation was due to personal reasons and not due to any “material reasons”.

Shares of Ujjivan SFB fell as much as 5.78 percent in the morning trade on Friday on the BSE after Chugh submitted his resignation on August 19.

The resignation will come into effect from September 30, 2021.

“We hereby inform you that the bank has received a letter dated August 18, 2021, from Mr Nitin Chugh tendering his resignation from the position of Managing Director and CEO of the Bank w.e.f. close of business hours on September 30, 2021,” Ujjivan SFB stated in its BSE filing.

Also Read: Ujjivan Small Finance Bank MD & CEO Nitin Chugh resigns from his position

The bank also announced the appointment of four additional directors.

The nomination and remuneration committee of the board of directors in its meeting held on Friday appointed Samit Kumar Ghosh, Sudha Suresh, Banavar Anantharamaiah Prabhakar, and Ravichandran Venkataraman as additional directors with effect from August 20, 2021.

While the holding company has nominated Samit Ghosh to be Director in both the firms – Ujjivan Financial services and Ujjivan SFB.

Sudha Suresh, who was the Managing Director and
CEO (2017 – 2018) and Chief Financial Officer (2008 – 2017) of Ujjivan Financial Services Limited, will be a non-executive non-independent additional director. While Prabhakar and Venkataraman are to be independent additional directors.

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

Tega Industries files IPO papers with Sebi, plans to raise Rs 700-750 crore

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

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Tega Industries, which offers solutions to marquee global clients in mineral beneficiation, has filed draft papers with the markets regulator Securities and Exchange Board of India (Sebi) to raise funds via an initial public offering (IPO).

According to sources, the IPO size could be in the range of Rs 700-750 crore. According to the draft red herring prospectus (DRHP) filed, the public issue will be a complete Offer for Sale (OFS) of 1,36,69,478 equity shares of face value of Rs 10 each by promoters and selling shareholders.

Through the offer for sale, promoters Madan Mohan Mohanka and Manish Mohanka would sell up to 33,14,657 equity shares and 6,62,931 equity shares, respectively.

Investor Wagner, an affiliate of the US-based private equity firm TA Associates, will also sell its entire shareholding of 96,91,890 equity shares via the OFS. The company had received funding from Wagner in 2011.

According to the DRHP, the equity shares intended to be offered by Wagner in the offer for sale will contain a maximum of 86,92,281 equity shares that will come from the conversion of 86,92,281 CCPP (cumulative convertible preference shares) owned by Wagner.

The company has reserved up to 50 percent of the issue for Qualified Institutional Buyers (QIBs), while 15 percent is reserved for non-institutional investors (NIIs) and the remaining 35 percent for retail investors.

Tega, with its headquarters in Kolkata, provides abrasion and wear-resistant products and services for mining, mineral processing, screening, grinding, material handling, and mineral beneficiation.

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