Author: Sandeep Singh

Rolex Rings IPO subscribed 12 times so far on final day. Here’s what GMP is suggesting

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

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Rolex Rings remained in high demand as its initial public offering (IPO) was subscribed nearly 12 times so far on Friday, the last day of the bidding process. In the grey market, which is an unofficial market for financial securities, the premium for Rolex Rings shares stood at Rs 550, according to market observers. This is 61 percent higher than the upper end of the issue price of Rs 900 for the IPO, which ends on the same day.

On Friday, the grey market premium for Rolex Rings shares was stable at around Rs 550, against Rs 430-450 a couple of days ago, according to market participants.

By 11:05 am, Rolex Rings’ IPO was had received 6,76,94,048 bids against the total size of 56,85,556 shares, data from stock exchange NSE showed. That marked a subscription of 11.91 times.

“At the price of Rs 900, the asking PE comes to be at 24X. High sentiment in primary markets may emanate in listing gains but for the long term, it would be worthy to watch for the performance of the company in the future and take any decisions accordingly,” said Abhay Doshi, founder of Unlisted Arena, a portal that tracks unlisted market trends.

The Rolex Rings IPO is a combination of fresh issuance of shares worth Rs 56 crore and an offer for sale (OFS) by Rivendell PE LLC of up to 75 lakh equity shares worth Rs 675 crore. Proceeds from the fresh issuance will be utilised towards funding long-term working capital requirements and for general corporate purposes. The company will not receive any proceeds from the OFS.

Investors will be able to bid for a minimum of 16 shares, estimated at Rs 14,400 at the upper end of the price band, and in multiples thereof.

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

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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

8 investing lessons Everstone’s Prashant Desai picked while working with Rakesh Jhunjhunwala

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

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How often do you pick a valuable lesson from a colleague?

“‘Bhav bhagwan hai’ (price is God).” That’s the first and foremost in a series of lessons from none other than ace investor Rakesh Jhunjhunwala that a former colleague of his has picked and put together on social media.

Prashant Desai, Senior Director at PE and realty investment firm Everstone Capital, has handpicked and compiled eight lessons on investing from the Big Bull, according to a chain of Tweets by Ravi Dharamshi, founder and MD, ValueQuest Investment Advisors.

Both Desai and Dharamshi have earlier worked in RARE Enterprises, an asset management firm owned by Jhunjhunwala, whose plan to foray into aviation took Twitter by storm recently.

“Time for a thread on learnings from RJ. Succinctly put together by my friend and colleague Prashant Desai. #learningsfrommarkets #RakeshJhunjhunwala,” Dharamshi wrote in a post on Twitter.

“I worked with Rakesh Jhunjhunwala as his Head of Research and what an amazing learning experience it was. Working closely with him led to several investing lessons, which I still keep going back to,” Desai wrote in the original post on LinkedIn.

Here are those eight lessons:

1. ‘Bhav bhagwan hai’

2/9 pic.twitter.com/YKjhg5lhLj

— Ravi Dharamshi (@ravidharamshi77) July 29, 2021

2. Right or wrong doesn’t matter

What matters is how much money you made when you were right and how much you lost when you were wrong.

3. Don’t borrow to invest

Markets may remain irrational more than the rational being can remain solvent.

4. Risk

Beware of this four-letter word. Only invest what you can afford to lose in the short term.

5. Investing cannot be taught

Make mistakes. Make a mistake that you can afford so that you can live to make another one. But never repeat the same mistake.

6. Be an optimist

That’s the first quality necessary to succeed as an investor.

7. Conviction and patience

In stock markets, your patience is tested, and conviction is rewarded.

8. Wisdom and wealth are not related

9/9 pic.twitter.com/ejC2kslLpk

— Ravi Dharamshi (@ravidharamshi77) July 29, 2021

Also read: How Rakesh Jhunjhunwala and Warren Buffett view airline stocks

Meanwhile, billionaire investor Jhunjhunwala’s proposed airline, Akasa Air, plans to have a fleet of 70 aircraft. He will invest $35 million and hold a stake of around 40 percent in the venture.

Jhunjhunwala’s move comes at a time when airlines around the globe are struggling to maintain altitude due to the uncertainty caused by the coronavirus pandemic and fluctuations in oil prices, as fuel costs are a major expense for carriers.

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

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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

Top stock tips by Shrikant Chouhan, Mitessh Thakkar

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

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Here are the top buy-sell calls by market experts:

Shrikant Chouhan — Kotak Securities

—Buy HCL Tech for a target of Rs 1,060 with a stop loss at Rs 980

—Buy Canara Bank for a target of Rs 160 with a stop loss at Rs 145

—Buy JSPL for a target of Rs 455 with a stop loss at Rs 425

Mitessh Thakkar — mitesshthakkar.com

—Buy L&T Infotech around Rs 4,600 for a target of Rs 4,800 with a stop loss at Rs 4,500

—Buy HCL Tech around Rs 1,005 for a target of Rs 1,040 with a stop loss at Rs 989

—Sell HDFC Life for a target of Rs 640 with a stop loss at Rs 672.5

—Sell Apollo Tyre for a target of Rs 205 with a stop loss at Rs 221

Catch all live market updates here

Disclaimer: CNBCTV18.com advises users to check with certified experts before taking any investment decisions.

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

Is a rate hike in US far away? How economists are reading latest Fed policy

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

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The Federal Reserve kept benchmark interest rates on hold after a two-day scheduled policy meeting that ended on Wednesday. The Fed, however, maintained that the US economy is on track despite a spike in COVID-19 cases.

The US job market still had “some ground to cover” before it would be time to pull back from economic support, chairman Jerome Powell said. “Right now, it is not the ideal time to think about raising interest rates. Instead, the Fed is focusing on asset purchases,” he said.

Though the US central bank hinted at progress on talks on tapering of bond purchases, it did not offer any clarity on the timing of tightening of stimulus that it introduced in 2020 to help the world’s largest economy tackle the fallout from the pandemic.

Also read: Not time to start talking about tapering asset purchases: Powell

For now, the central bank is purchasing $120 billion in Treasury and mortgage bonds each month to support the US economy.

Here’s how analysts and economists are reading the latest policy statement from the Fed and chairman Powell’s remarks:

Madhavi Arora, lead economist, Emkay Global Financial Services:

Changes to the statement language skewed mildly hawkish as the Federal Open Market Committee indicated that the US economy “has made progress” towards its goals to begin reducing asset purchases. But overall tone on the path of rates remains pretty dovish.

On the composition of tapering, Powell threw cold water on the idea of an early start to tapering mortgage-backed securities vs Treasuries but indicated some support for tapering the purchase of the former more rapidly than the latter.

We see this meeting opening the door to a possible taper announcement in December that begins reducing the purchase pace in January-March.

Madan Sabnavis, chief economist, CARE Ratings:

The Fed policy talks of continuity in its approach to quantitative easing of $120 billion a month which has assuaged markets. Interestingly, it has mentioned that it is not too confident on employment generation in the country and while there is an improvement, there is no full-scale recovery as yet. This gives a signal that rates will remain untouched for some more time even though inflation is high. Inflation is considered to be transient as of now.

Also read: Is India headed for stagflation? Here’s how COVID-19 vaccination coverage is linked

A sharp recovery in the US accompanied by interest rates going up can retard FPI flows. The signal now of the status quo is useful to that extent as it indicates that funds can continue to flow to emerging market economies.

VK Vijayakumar, chief investment strategist, Geojit Financial Services:

The Fed’s announcement sends out the clear message that a rate hike is far away. The Fed chief’s statement that ‘substantial progress on inflation and unemployment is needed” is indicative of the central bank’s priority now. If things go according to its plans, a rate hike is possible only by the end of 2022 or early 2023. Tapering may happen by April 2022 and the Fed is likely to communicate this appropriately and condition the market for the event.
An important takeaway from the Fed’s announcement is that it is not unduly concerned about the asset price inflation caused by the humongous liquidity it has unleashed. It can be presumed that the Fed sees no threats to financial stability.

Sandip Sabharwal of Asksandipsabharwal.com:

The Fed policy was on expected lines. They have slowly started recognising the pickup in the economy and inflationary build-up. The key is to see how long they can hold up the start of the bond-buying tapering. They are likely watching the current Covid wave and will give a more clear outlook in September.

Also read: Indianomics: Morgan Stanley maintains 6.5% global growth forecast; says RBI can look through inflation for now

As such it’s status quo right now and markets will react to results and overall global market movements where valuations are extremely stretched. The possibility of sudden knee-jerk selloffs is increasing.

AK Prabhakar, head of research, IDBI Capital:

The latest Fed policy was on expected lines and good for markets. There was no negative surprise.

Arnab Das, global market strategist, Invesco:

What has happened over the last few months is that the Fed has to a significant extent reduced the concern that it would let inflation run too hard. It has begun talking about tapering, talking about it a bit more deeply but not going so far as to preempt the labour market and to preempt recovery, which does shift the tone from having been too dovish before they started talking about tapering to being too hawkish and now being just about right in the kind of Goldilocks way.

Also read: Inflation will moderate, expect it to be below 6% in July, says CEA

I agree with the consensus that this was a bit of a dovish take on the growth recovery and the process. I think it is appropriate because the delta variant – although the Fed downplayed the risks of delta variant to the US economy itself, it is clear that the delta variant is constraining recovery in parts of the world.

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

Bumper listing for Tatva Chintan, investors money doubled

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

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Tatva Chintan Pharma Chem shares extended gains after a strong debut on Dalal Street on Thursday. The stock of the latest debutant on Dalal Street jumped as much as 129.58 percent to Rs 2,486.30 apiece on BSE, after opening at Rs 2,111.80 apiece on the bourse against its issue price of Rs 1,083. That marked a listing gain of 95 percent.

On NSE, Tatva Chintan shares climbed to as high as Rs 2,534.20, a premium of 134 percent over the issue price.

Tatva Chintan’s listing gain was among the highest among the debutants so far this year.

Last week, GR Infraprojects had made a strong debut as its shares were listed at a premium of 105 percent at Rs 1,715.8 apiece on NSE.

ALSO READ | GR Infraprojects makes strong debut; lists at 105% premium over the issue price

“Tatva Chintan is expected to do well due to its leadership position, wide product portfolio, strong client relationship and capacity expansion leading to strong growth ahead,” said Sneha Poddar, AVP — Research Analyst, Broking & Distribution, Motilal Oswal Financial Services.

Tatva Chintan shares ended at Rs 2,310.25 apiece on BSE, up 113.32 percent from their issue price. On NSE, the stock ended with a gain of 112.68 percent.

Vadodara-based Tatva Chintan’s IPO, which closed for bidding of shares on July 21, saw a subscription of more than 180 times.

Tatva Chintan is one of the major players in the specialty chemicals segment with its broad range of products.

“After Clean Science, Tatva Chintan is the second company in the green chemicals space to get listed on the bourses. For some of its products, it is the only manufacturer in India and among the largest globally. Its products have various applications in green chemistry, which is gaining prominence considering the growing focus on clean and sustainable technologies,” Poddar added.

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

Nestle India shares drop after Q2 earnings. Here’s what brokerages say

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

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Nestle India’s stock fell as much as 1.04 percent to Rs 17,825.75 on the BSE on Thursday after briefly trading in positive territory. Nestle, on Wednesday, reported a 10.68 percent year-on-year rise in net profit to Rs 538.58 crore for the quarter ended June 30. Its total income increased 13.53 percent to Rs 3,506.17 crore.

Nestle reported earnings per share of Rs 55.86 in the quarter ended June 2021, against Rs 62.46 in the previous three-month period and Rs 50.47 in the quarter ended June 2020.

Growth in total and domestic sales was due to a base impacted by the coronavirus-induced lockdown with production disruptions across factories, the company said.

Among the brokerages positive on Nestle India are CLSA, UBS, and Credit Suisse.

Here’s what they said on the company’s performance in the June quarter:

CLSA
The company’s performance was weaker than expected on the EBITDA and PAT growth fronts, according to the brokerage. Unlike last year, when the sudden lockdown hindered supplies from North-focused manufacturing units, this time, the company was better, however, a drop in sales’ two-year CAGR from 10 percent to 8 percent was unsatisfactory. With more than 80 launches in the last five years and more than 40 products in the pipeline, CLSA expects the company to leverage penetration opportunities.

Incorporating the results for the first half of the year, the brokerage cut its earnings estimates by 3 percent. It maintained an ‘outperform’ rating but reduced its target price from Rs 19,000 to Rs 18,500.

UBS
The company’s key categories drove growth while e-commerce accelerated, said the brokerage, which has a ‘buy’ call on the stock with a target of Rs 21,500 apiece. The company’s new product contribution is growing, while expansion is on track, it added.

Credit Suisse
The brokerage has a ‘neutral’ rating citing stretched valuations and limited room for a positive surprise. The company saw healthy growth, but is no longer an outlier, said the brokerage, which has a target of Rs 18,350 apiece on the stock. Credit Suisse remains positive on Nestle India’s long-term prospects. It, however, cut its CY21-23 earnings estimate by three percent.

JPMorgan
The brokerage remained ‘neutral’ on Nestle India citing limited scope for earnings upgrades. The company’s quarterly performance missed the revenue estimate while its gross margin declined on a QoQ basis, said the brokerage, which has a target of Rs 17,700 apiece on the stock.

Morgan Stanley
The brokerage has an ‘equal-weight’ call on the stock with a target of 17,511 apiece. The growing revenue contribution from e-commerce and innovations are key positives for the company, it said. Rising commodity prices leading to a 160-bps dip in the gross margin on a QoQ basis is negative.

Motilal Oswal
The brokerage maintained a ‘neutral’ rating on the stock with a target price of Rs 18,600. It said the company’s sales were below its expectation while the gross margin pressure was evident. Rising palm oil and packaging costs led to a lower-than-expected operating margin, resulting in a 5-6 percent miss to its EBITDA and PBT estimates, Motilal Oswal said. The structural opportunity in the Indian food space is extremely attractive, it added.

HDFC Securities
The brokerage maintained a ‘reduce’ rating on the stock with a target price of Rs 17,108 apiece. While the company beat its estimate on the revenue front, its margin fell short of the brokerage’s expectation.

At 10:05 am, Nestle India shares were down 0.78 percent at Rs 17,871.50 apiece on the bourse, underperforming the S&P BSE Sensex index, which was up 0.43 percent at 52,667.16.

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

Top stock tips by Sudarshan Sukhani, Mitessh Thakkar

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

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Here are the top buy-sell calls by market experts:

Sudarshan Sukhani — s2analytics.com

—Buy Balkrishna Industries for a target of Rs 2400 with a stop loss at Rs 2330

—Buy Mindtree for a target of Rs 2780 with a stop loss at Rs 2680

—Buy Bata India for a target of Rs 1625 with a stop loss at Rs 1580

—Sell LIC Housing Finance for a target of Rs 427 with a stop loss at Rs 438

Mitessh Thakkar — mitesshthakkar.com

—Buy Bharat Electronics for a target of Rs 199 with a stop loss at Rs 186

—Buy Bharti Airtel for a target of Rs 590 with a stop loss at Rs 556

—Sell Canara Bank for a target of Rs 137 with a stop loss at Rs 146

—Buy ICICI Bank for a target of Rs 700 with a stop loss at Rs 677.5

Catch all live market updates here

Disclaimer: CNBCTV18.com advises users to check with certified experts before taking any investment decisions.

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

Fed keeps key interest rates near zero, says economic recovery on track: Highlights

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

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The Federal Reserve kept key policy rates unchanged at the end of a two-day meeting on Wednesday as widely expected, and maintained that the US economy remains on track despite a spike in coronavirus cases. The US central bank, however, offered no clues about when it will start to tighten its ultra loose monetary policy for the world’s largest economy that it introduced in 2020 to battle the economic fallout from the pandemic.

The US job market still had “some ground to cover” before it would be time to pull back from economic support, Chairman Jerome Powell said after the much-awaited scheduled policy review. “Right now, it is not the ideal time to think about raising interest rates. Instead, the Fed is focusing on asset purchases,” he said. He suggested that the Delta variant of the deadly virus poses little threat to the economy, at least so far.

For now, the central bank is purchasing $120 billion in Treasury and mortgage bonds each month to support the US economy.

Wall Street ended on a mixed note after an initial spike and the greenback slid. The Dow Jones Industrial Average ended 0.36 percent lower at 34,930.93, the S&P 500 slipped 0.02 percent to 4,400.64 and the tech stocks-heavy Nasdaq Composite jumped 0.70 percent to shut shop at 14,762.58.

The dollar index — which gauges the American currency against six peers — declined 0.10 percent to 92.2290.

Brent crude oil futures slipped to the $74.69 per barrel mark. US stockpiles last week dropped to their lowest since January 2020 while imports and production declined. WTI oil futures edged lower to $72.35 per barrel.

Here are the highlights of Fed’s latest policy meeting:

• Fed keeps benchmark interest rates unchanged at 0-0.25 percent, says economy continues to progress despite Covid spread
• Hints at progress on talks on tapering of bond buys but gives no timeline
• Wants to see substantial further progress toward goals of maximum employment, price stability before considering reducing bond buys
• Says indicators of economic activity, employment have continued to strengthen
• Says US economy has kept strengthening despite rise in infections
• FOMC to continue to assess progress in coming meetings
• Fed Chair Jerome Powell acknowledges a fresh outbreak might slow return of workers to jobs market to some extent
• Fed still expects vaccinations to reduce effect of public health crisis on US economy
• Jerome Powell:
• Would want to see some strong job numbers in coming months before reducing bond purchases
• Seems like we have learned to handle this “with progressively less economic disruption”
• “Very little support” for cutting $40 billion a month mortgage-backed securities earlier than $80 billion in Treasuries
• Once the process begins, Fed to taper them at same time
• Not yet time to think about raising interest rates; Fed has not set a timetable for when to do so
• Fed wants inflation to moderately exceed its 2 percent average inflation target, to show signs of remaining above that level
• Last summer’s wave of infections had inflicted less damage to US economy that many analysts had forecast
• We have kind of learned to live with it, a lot of industries have kind of improvised their way around it; seems like we have learned to handle this

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

Nestle India Q2 results: PAT rises 11% YoY in June quarter to Rs 539 crore

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

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Nestle India reported a 10.68 percent rise in net profit to Rs 538.58 crore for the quarter ended June 30. The company had posted a net profit of Rs 486.60 crore for the corresponding period a year ago.

Its total income increased 13.53 percent to Rs 3,506.17 crore in the quarter from Rs 3,088.41 crore in the year-ago period. That was on the back of total domestic sales of Rs 3,304.97 crore, up 13.66 percent on a year-on-year basis.

Exports came in at Rs 157.38 crore against Rs 133.71 crore a year ago.

Total expenses rose 13.94 percent to Rs 2,775.68 crore, including a 23.80 percent increase in the cost of materials consumed.

Nestle’s earnings per share were at Rs 55.86 in the quarter ended June , against Rs 62.46 in the previous three-month period and Rs 50.47 in the quarter ended June 2020.

The company said the growth in its total and domestic sales was due to a base impacted by the Covid-19-induced lockdown with production disruptions across factories. The growth in domestic sales was driven by volume and mix.

Nestle said its key products such as Maggi noodles, Kitkat, Nestle Munch, Maggi sauces and Maggi Masaalae Magic posted strong double-digit growth.

Nestle India shares ended 1.24 percent lower at Rs 18,012.60 apiece on BSE ahead of the earnings announcement. The stock underperformed the S&P BSE Sensex benchmark, which ended 0.26 percent lower at 52,443.71.

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