Jubilant FoodWorks hits 52-week high on Fides Food Systems acquisition; shares jump 5%

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

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Shares of Jubilant FoodWorks rallied 5 percent to hit a fresh 52-week high of Rs 3,098.55 in early trade on Monday after the makers of Domino’s Pizza in India announced the acquisition of Fides Food Systems Coöperatief U.A. by its subsidiary.

In an exchange filing, the company said that its wholly-owned subsidiary Jubilant Foodworks Netherlands B.V. entered into a purchase agreement with Turkish Private Equity Fund II L.P. to fully acquire Fides Food Systems Coöperatief U.A. which holds 32.81 percent equity shares in DP Eurasia N.V.

DP Eurasia is a public company listed with London Stock Exchange Plc, and is the exclusive master franchisee of the Domino’s Pizza brand in Turkey, Russia, Azerbaijan and Georgia. DP Eurasia (together with its subsidiaries) offers pizza delivery and takeaway/eat-in facilities at 771 stores (568 in Turkey, 190 in Russia, 9 in Azerbaijan and 4 in Georgia as of 31 December 2020).

Jubilant Foodworks Ltd has also executed the purchase agreement as guarantor in connection with the investment obligations of Jubilant Foodworks Netherlands B.V.

Global brokerage Jefferies is of the view that the 32.8 percent stake buy in DP Eurasia was at an attractive valuation, while this raises concerns of volatility and bandwidth. Despite being the largest shareholder, there won’t be line-by-line consolidation, it said.

Jefferies maintained a buy rating on the stock with a target price of Rs 3,050 per share.

Credit Suisse said that the transaction was done at a 20 percent discount and valued DP Eurasia at a large discount to other listed Domino’s Franchisees. It said that the transaction increases the addressable market but the dynamics of these markets could be very different.

The brokerage house maintained a neutral call on the stock with the target price of Rs 2,450 per share.

At 11:00 am, the shares of Jubilant FoodWorks were trading 4.61 percent higher at Rs 3,087.00 apiece on the BSE as compared to a 0.69 percent loss in the benchmark Sensex.

Catch all the latest updates from the stock market here.

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

Amazon vs Future case: Supreme Court restrains NCLT from finalising orders sanctioning Future Retail scheme

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

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The Supreme Court has allowed National Company Law Tribunal (NCLT) to proceed with the hearing but has asked it not to pass any final order for sanctioning the scheme in Amazon vs Future case.

The apex court has allowed Future Retail to proceed with the plea for a nod before the NCLT. It has also issued notice to Future Retail on Amazon’s plea seeking status quo.

Earlier this month, e-commerce Amazon moved Supreme Court against Future-Reliance Retail deal, challenging the lifting of “status quo” orders by the division bench of Delhi High Court.

Amazon, locked in legal disputes with Future, alleged that the Indian firm violated contracts by agreeing to sell its retail assets to Reliance Industries last year. Future, however, denied any wrongdoing.

In August 2020, Future Group signed an agreement to sell its retail, wholesale and logistics business to Reliance Retail by way of a slump sale for Rs 24,713 crore.

Three months after the deal, Amazon approached the Singapore Arbitration Centre (SIAC) against the deal in October and won an interim award in its favour. A final ruling by the arbitrator in the matter is pending.

Disclaimer: Network18, the parent company of CNBCTV18.com, is controlled by Independent Media Trust, of which Reliance Industries is the sole beneficiary.

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

Ambuja Cements shares fall: Should investors buy, sell or hold?

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

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Cement manufacturer Ambuja Cements reported a 34.06 percent on-year jump in its consolidated net profit at Rs 968.24 crore in the quarter ended December 2020. The company’s revenue from operations during the quarter rose 4.58 percent to Rs 7,452.87 crore from Rs 7,126.44 crore, YoY.

Here’s what brokerages have to say about the company’ December quarter earnings:

Goldman Sachs

The brokerage believes that the company has exposure to markets, where volume trends remain strong. The pricing is relatively stable in the regions where the company has exposure. The risk-reward is attractive at current levels, it said.

Goldman Sachs maintains a Buy rating with a target price of Rs 320 per share

UBS

UBS prefers cement players who gain on capacity market share. It expects the company to lose EBITDA market share over the medium term. UBS maintains a Sell rating with a target price of Rs 190 per share.

Morgan Stanley

Morgan Stanley retained its Overweight call on the stock with a target price of Rs 325 as it is of the view that the company had a strong volume growth, led by the capacity expansion. “The resilient margin and recent underperformance keep us constructive,” it said.

Strategic focus areas include market share, cost optimisation and sustainability. The brokerage sees good earnings growth along with room for re-rating.

CLSA

The impact of efficiencies has led to cost-savings in CY20, while further benefits are likely to accrue on a ramp-up of capacities. The recovery in west India and commissioning of capacities augur well for the cement maker, CLSA said.

However, CLSA believes that further capacity addition would be key to maintaining the market share. It maintained an Outperform rating on the stock with a target price of Rs 301 per share.

HDFC Securities

Over the next two years, Ambuja Cements’ profitability will benefit from its capacity expansion in the north and low-cost WHRS and solar power expansions. Ambuja Cements also hinted that it is exploring capacity expansion at various locations to drive long-term growth visibility, HDFC Securities said.

The brokerage maintains a Buy rating with a revised SOTP-based target price of Rs 308 per share.

Motilal Oswal

Ambuja Cemets’ 4QCY20 result highlights a gradual normalisation of fixed costs curtailed due to the COVID-19 pandemic. Capacity constraints resulted in below industry growth in volumes at 8 percent YoY.

Commissioning of Marwar-Mundwa capacity (in 2QCY21) should help volumes grow in line with the industry at 11 percent CAGR over CY20-22E.

The brokerage maintained a Neutral rating due to weak growth visibility beyond CY22.

At 10:15 am, the shares of Ambuja Cements were trading 1.98 percent lower at Rs 269.80 apiece on the BSE as compared to a 0.92 percent fall on the benchmark Sensex.

Catch all the latest updates from the stock market 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

Rupee surges 11 paise to 72.54 against US dollar in early trade

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

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The rupee appreciated 11 paise to 72.54 against the US dollar in opening trade on Monday supported by sustained foreign fund inflows and weakness of the American currency in the overseas market. At the interbank forex market, the domestic unit opened at 72.58 against the US dollar and inched higher to 72.54 against the greenback, registering a rise of 11 paise over its previous close.

On Thursday, the rupee had settled at 72.65 against the American currency. The forex market was shut on Friday on account of Chhatrapati Shivaji Maharaj Jayanti.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, fell 0.04 percent to 90.32. The rupee started on a strong note against the US dollar tracking the weakness of the greenback. Additionally, foreign portfolio investment (FPI) flows into the markets could also lend support, Reliance Securities said in a research note.

”The important macroeconomic data releases this week are the third-quarter GDP data and the fiscal deficit data which could move the markets,” the note added. Traders said investors could await the release of RBI Monetary Policy Committee’s February meeting minutes on Monday for further cues.

On the domestic equity market front, the 30-share BSE benchmark Sensex was trading 416.83 points lower at 50,472.93, and the broader NSE Nifty declined 100.80 points to 14,880.95. Foreign institutional investors were net buyers in the capital market as they purchased shares worth Rs 118.75 crore on Friday, according to exchange data.

Also Read: Maharashtra COVID-19 lockdown: Here’s what you need to know

Brent crude futures, the global oil benchmark, advanced 1.30 percent to USD 63.73 per barrel.

Click here: For the latest news and updates on COVID-19

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

Sebi wants promoters to sell their cryptocurrency before IPO, says report

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

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Sebi wants promoters to sell all their cryptocurrency before raising funds for their companies through an IPO, reported The Economic Times. As per the report, several people with direct knowledge of the matter procession of cryptocurrency could now hinder the fundraising attempts of promoters.

According to the report, Sebi had already communicated this to merchant bankers, securities lawyers and even company executives involved with the IPO process. While no response came from the part of Sebi, people with knowledge of the subject believe that the regulator is foreseeing the possibility of the government banning cryptocurrency that is not state-issued.

“There could be a direction from the government in this regard. The market regulator seems to think that this could become a risk for investors if a promoter holds an asset that is illegal in the country,” a top securities lawyer currently working on some of the largest IPOs was quoted as saying in the report.

Sebi’s move– which comes in form of informal communication—comes as the government is looking to introduce the Cryptocurrency and Regulation of Official Digital Currency Bill, 2021.

However, some legal experts argue that the regulator’s stand may not be justified. “If a promoter holds any cryptocurrency, it may not necessarily expose the company to any risk — the same way as holding any other financial assets doesn’t pose a risk to the operations of a listed entity…Further, it’s always possible to migrate the holding of a crypto asset overseas, or to be transferred to an affiliate. Either way, it seems that the regulator is being over-cautious here and it appears like a case of overreach,” Vatsal Gaur, partner, Pier Counsel, was quoted as saying in the report.

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

Maharashtra COVID-19 lockdown: Here’s what you need to know

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

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In view of the rise in COVID-19 cases across Maharashtra, the state government has announced new guidelines, such as lockdowns and night curfews across various regions. On Sunday, nearly 7,000 new COVID-19 cases were reported across Maharashtra — the biggest surge in the last three months. This apart, 35 deaths were also reported in the last 24 hours. Terming the situation “serious”, Maharashtra Chief Minister Uddhav Thackeray warned that the government may have to impose a complete shutdown across the state if cases continue to rise over the next eight days.

 Here are the latest steps taken by the government

 In Mumbai, buildings with more than five COVID-19 patients will be sealed. Wearing masks in public places is mandatory, and severe action will be taken against those breaking the rule. About 300 marshals will be deployed on local trains to catch those travelling without masks and take action. Air travellers from Brazil will have to undergo compulsory institutional quarantine. A gathering of over 50 people will lead to punitive action.

In Pune, the curbs include a restriction on the movement of people from 11 pm to 6 am for non-essential activities. Distribution of newspapers and milk, vegetable supply, and hospital emergencies are not included in the curbs. Schools, colleges and private coaching classes will remain shut till February 28. Hotels, bars and restaurants will have to down shutters by 11 pm every day. There will be stricter norms for weddings and other social and political events, too.

A 7-day complete lockdown has been imposed in Amravati city and Achalpur town in Amravati district.

The district authorities in Nashik have enforced night curfew between 11 pm and 5 am from Monday. Those not wearing masks will be fined Rs 1,000, and police permission will be required for marriage functions.

In Amravati, Akola, Buldhana, Washim and Yavatmal, the authorities have imposed a partial lockdown.

In Yavatmal, a 10-day lockdown has been imposed. Schools, colleges and coaching centres will be shut till 28 February. And only 50 people will be allowed at weddings.

The total number of cases in Maharashtra is over 21 lakh, with the death toll being 51,788. The number of active cases in the state is over 52,000.

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

Remain negative on hotels, airline stocks; prefer private banks over PSUs: Dimensions’ Ajay Srivastava

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

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The market correction should be taken in a stride and one should not get nervous, opportunities like this should be used to buy stocks, Ajay Srivastava, CEO of Dimensions Corporate Finance Services on Monday. Government policy is conducive for the equity market, he said.

Srivastava thinks private banks are a beaten-up story.

“You need to buy them in your portfolio. I am not a buyer of the public sector undertaking (PSU) bank stocks, I would rather take the money and put it in ICICI Bank, HDFC Bank, an institution or any other place but certainly not a PSU bank.”

On hotel stocks, he said, “Hotels have never made money at most of the times. These are not investments. The hotel is a no-go territory. An odd guy like Lemon Tree may give you extraordinary returns the way it is positioned in terms of properties but I would say don’t go there at all.”

On the aviation sector, Srivastava said, “We have got one stock of value in this country, Indigo. There is no investing theory behind these aviation stocks.”

Don’t go to the hotel, aviation stocks, he pointed out, while adding that auto ancillary stocks are doing decently well.

Srivastava advises buying metals. “I am saying buy metals. If you have not bought commodity stocks, metal stocks, if you have missed it out, there is still time to buy them even at this point of time,” he said.

The demand traction on the real estate side is mindboggling and incredible, he pointed out.

“Paints is good, tile industry has done very well, ceramics has done okay, you are in the comfortable zone on the real estate side at this point of time,” he added.

“For all investors, fast-moving consumer goods (FMCG) is going to underperform their portfolios for a simple reason that post the pent-up demand, the numbers will look a little weaker compared to the second or third quarter of the current year,” Srivastava 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

Standout Brokerage Report: UBS cautious on IT stocks; neutral on Infosys, Wipro, TCS, downgrades HCL Tech

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

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UBS has raised the FY22-FY23 earnings forecast by seven percent on average. However, the firm sees limited scope for valuation upside or for earnings upside from current levels. Hence UBS has a very cautious view on the entire IT sector.

Within stocks, UBS has a neutral rating on Infosys, Wipro and Tata Consultancy Services (TCS) with a target price of Rs 1,450, Rs 470 and Rs 3,345 respectively and has downgraded HCL Technologies to sell with a target price of Rs 855.

CNBC-TV18’s Nimesh Shah has more details.

To watch other videos in this series, click on the Standout Brokerage Report tab below.

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

Prakash Diwan: Will buy hotel stocks and wait it out; expect IndusInd Bank to consolidate

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

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Maharashtra Chief Minister Uddhav Thackeray said on Sunday, February 21 that a strict lockdown could be implemented in the state as well as Mumbai if people don’t follow the COVID-19 discipline.

When asked how this will affect hotels, cinema halls and restaurants, market expert Prakash Diwan replied, “The way some of them are shoring up results and gearing up for a much bigger fillip in terms of international travel opening up, the way airlines are gearing up I think things will look up. So you have to buy these stocks, definitely, there is still value available, East India Hotel, Indian Hotels – these are stocks that will benefit more on the resumption of international travel. This sector will probably play a big catch-up as and when things happen. So it is time to buy these and wait it out.”

Diwan is not positive on PVR.

“I would not jump into a multiplex stock but definitely hotel stocks for sure.”

He also thinks that the market will not very negatively react to CM’s announcement at this point in time.

There is enough business for all the banking players to increase their books, he said.

“I think IndusInd Bank will consolidate and move to the next 1,500 zones.”

On cement stocks, Diwan said, “I prefer some of the smaller names. Deccan Cement has clocked very good earnings, closing the year with an EPS of Rs 890 and it is still available at just about 6 times P/E multiple on that basis. So there is still value in the smaller names. Bigger names have probably got fancied a bit and hence expensive.”

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Disclaimer: The views and investment tips expressed by investment experts on CNBCTV18.com are their own and not that of the website or its management. 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

Boeing recommends airlines suspend use of some 777s after United incident

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

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Boeing Co said it recommended suspending the use of 777 jets with the same type of engine that shed debris over Denver at the weekend after US regulators announced extra inspections and Japan suspended their use while considering further action.

The moves involving Pratt & Whitney 4000 engines came after a United Airlines 777 landed safely at Denver International Airport on Saturday local time after its right engine failed.

United said the next day it would voluntarily and temporarily remove its 24 active planes, hours before Boeing’s announcement.

Boeing said 69 of the planes were in service and 59 were in storage, at a time when airlines have grounded planes due to a plunge in demand associated with the COVID-19 pandemic.

The manufacturer recommended airlines suspend operations until US regulators identified the appropriate inspection protocol.

The 777-200s and 777-300s affected are older and less fuel-efficient than newer models and most operators are phasing them out of their fleets.

Images posted by police in Broomfield, Colorado showed significant plane debris on the ground, including an engine cowling scattered outside a home and what appeared to be other parts in a field.

The National Transportation Safety Board (NTSB) said its initial examination of the plane indicated most of the damage was confined to the right engine, with only minor damage to the airplane.

It said the inlet and casing separated from the engine and two fan blades were fractured, while the remainder of the fan blades exhibited damage.

Japan’s transport ministry ordered Japan Airlines Co Ltd (JAL) and ANA Holdings Inc to suspend the use of 777s with P&W4000 engines while it considered whether to take additional measures.

The ministry said that on Dec. 4, 2020, a JAL flight from Naha Airport to Tokyo International Airport returned to the airport due to a malfunction in the left engine about 100 kilometres north of Naha Airport.

That plane was the same age as the 26-year-old United Airlines plane involved in the latest incident.

United is the only US operator of the planes, according to the Federal Aviation Administration (FAA). The other airlines using them are in Japan and South Korea, the US agency said.

”We reviewed all available safety data,” the FAA said in a statement. ”Based on the initial information, we concluded that the inspection interval should be stepped up for the hollow fan blades that are unique to this model of engine, used solely on Boeing 777 airplanes.”

Japan said ANA operated 19 of the type and JAL operated 13 of them, though the airlines said their use had been reduced during the pandemic. JAL said its fleet was due for retirement by March 2022.

Pratt & Whitney, owned by Raytheon Technologies Corp, was not available immediately for comment.

A spokeswoman for South Korea’s transport ministry, speaking before Boeing recommended suspending operations, said it was monitoring the situation but had not yet taken any action.

Korean Air Lines Co Ltd said it had 12 of the planes, half of them stored, and it would consult with the manufacturer and regulators and stop flying them to Japan for now.

In Feb. 2018, a 777 of the same age operated by United and bound for Honolulu suffered an engine failure when a cowling fell off about 30 minutes before the plane landed safely. The NTSB determined that incident was the result of a full-length fan blade fracture.

Because of that 2018 incident, Pratt & Whitney reviewed inspection records for all previously inspected PW4000 fan blades, the NTSB said. The FAA in March 2019 issued a directive requiring initial and recurring inspections of the fan blades on the PW4000 engines.

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