Tag: mutual funds

Looking for safe havens in volatile markets? 10 stocks with high dividend yield

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

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If you are looking to play safe in equity markets and want to avoid taking risks, don’t miss out on stocks that offer dividend on a regular basis. They might turn out to be multibaggers but investors will be able to generate a steady flow of risk free income from such stocks.

Dividends are distributed by companies out of their profit after tax. A dividend payout ratio indicates how much a company pays out in terms of dividends compared to its share price.

History suggests that dividend paying stocks are less volatile in times of uncertainty or steep corrections. While selecting such stocks investors should look for stability in the underlying business of the company, along with its ability to generate cash flows to pay dividend.

According to a report by IDBI Capital, top 10 stocks with high dividend yield and double-digit return on equity (RoE) include: Rural Electrification Corporation, Coal India, Accelya Kale Solutions, Castrol India, Procter & Gamble Hygiene & Health Care, Infosys, InterGlobe Aviation, Bajaj Corp, Hindustan Zinc and Hero MotoCorp etc. among others.

“At a fundamental level, the return of capital to shareholders by way of dividends generally tends to be sticky and less volatile compared to fluctuation in earnings. The idea is to declare dividends, which can be maintained even in a downcycle,” Harish Krishnan, fund manager-equity, Kotak Mutual Fund, said.

“Ultimate wealth creation comes from tracking the fundamentals of companies, of which dividend track record is an important parameter. One needs to see whether the management rewards shareholder with near term dividends or deploys capital in more value creating opportunities for the future,” he said.

Should investors buy stocks that only offers dividends?

Experts feel investors should invest in growth stocks and not put too much emphasis on dividend payout. Depending on the risk profile of investors, they suggest that dividend paying stocks could constitute 20-60% of one’s portfolio. However, they were quick to add that investors should avoid depending too much on dividend paying stocks for long term value creation. “Despite helping in curbing volatility, it might not come in handy when it comes to value creation.”

Atish Matlawala of SSJ Finance cautions that not all stocks with a high dividend yield are attractive. “Investors should evaluate the company’s future prospects before investing. If the fall in prices is due to challenging future prospects, then a high dividend payout may not necessarily sustain going forward.”

He advises investors to check if the company has a generous payout policy or if it is a one-time event. “If future prospects of the company are bright and it has generous payout policy, then investing in such companies will protect the downside and generate superior returns when market sentiments improve.”

According to Matlawala, if the only criteria for acquiring a stock is its dividend yield, then one should buy only if the yield is more than 3 percent or half of the prevailing fixed deposit rates.

Dividend and stock prices

When a company increases its dividend yield, the company’s price-to-earnings reacts negatively. This is because higher dividends are seen as a signal that there are not too many growth opportunities in the company.

“Dividends are cash payouts and to that extent they reduce the value of a company. When we talk of value, we refer to the networth of the company and its market value. Since shareholders pay for growth, a higher dividend payout does not help valuations. That explains why oil marketing companies quote at low valuations despite generous dividend payouts,” Jaikishan Parmar, Senior Research Analyst at Angel Broking, said.

Disclaimer: The views and investment tips expressed by investment experts are their own and not that of the website or its management. Users are advised to check with certified experts before taking any investment decisions.

Source: Moneycontrol.com

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

Filing income tax returns? You need to disclose these assets to the taxman

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

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In order to detect cases of disproportionate assets owned by a taxpayer as compared to his known sources of income, the Income Tax Department wants taxpayer with income over Rs 50 lakh to report various assets and liabilities in income tax return (ITR). The requirement was implemented in 2016 and has since been modified from time to time. Let us discuss the latest requirements in detail.

To whom this requirement is applicable:

It is not that each and every tax payer has to report details of his assets and liabilities. The requirement to report the assets and liabilities is only applicable in case your taxable income exceeds Rs 50 lakh for the year. So, people who are eligible to file ITR 1 (Sahaj) do not have to furnish these details. In case you are engaged in a business and thus furnishing your balance sheet in the ITR, you are required to furnish only details of assets which are not already disclosed in the balance sheet.

What assets are required to be reported:

The format for disclosure of assets and liabilities is the same for all ITRs, except form ITR 3 and 4 wherein you are required to submit details of interest in the firm in which you are a partner. You are required to furnish details of your assets and liabilities as on March 31 under the AL schedule. So, any asset disposed of during the year will not form part of the schedule.

Disclosure for immovable properties:

You have to disclose details of immovable properties i.e. land and building owned by you in schedule AL. While submitting the details of immovable properties, you have to mention the description, cost and address of the property. Please note that besides disclosing assets purchased by you, you also have to disclose details of any immovable asset received as gift or inherited by you. In case you inherit a house in your ancestral village, you have to furnish the details here. Even if you are a joint owner of a property, you still have to furnish the details in cases where you have inherited a house jointly with your relatives or bought any property jointly.

While disclosing the cost in such cases you may face some problems as you may not have the details at which the person, from whom you had inherited or received the same as gift, had purchased it for. In order to comply with the requirement and as a safe measure you can indicate the market value as on April 1 as this is acceptable as cost for capital gains calculation purposes. In case any money is borrowed for immovable property or is borrowed on security of the asset, the same also needs to be disclosed in the schedule.

Disclosure of movable assets:

Under movable properties, the assets to be disclosed include financial assets like cash in hand, bank balances, shares and securities, loans and advances, and other movable asset like jewellery, bullion, vehicles, yachts, boats and aircraft, work of art etc as on March 31. Under jewellery, you are required to disclose details of jewellery but also bullion held in raw form. In case you own any gold bar or coins, the cost of the same needs to be disclosed in the schedule.

In case of assets inherited, the same principle as discussed above should be used. While disclosing the details of bank balances, one will have to disclose details of your loan account in case the same has a positive balance. In case of shares and securities, in cases where you have received these by way of gift or as inheritance and you do not know the cost, the market price as on April 1, 2001 may be furnished as a safeguard.

Traditional insurance policies may be treated as investments, but term plans, where you do not get any money back if you survive the policy term, cannot be treated as investment. Since no distinction is made between traditional policies and term plans, I would advise you to include premiums paid till date on term plans as well under the head insurance policies. You are also required to disclose the details of your vehicles, yatch, boats, aircraft etc. Vehicles which are not used and yet to be discarded or are being maintained as antique piece also needs to be disclosed.

Disclaimer: The views and investment tips expressed by investment experts are their own and not that of the website or its management. Users are advised to check with certified experts before taking any investment decisions.

Source: Moneycontrol.com

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

Do not make these seven mistakes while investing in mutual funds

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

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If you have not invested in a mutual fund scheme till date, you are not trendy for sure. The monthly systematic investment plan (SIP) book of mutual funds have swollen to Rs 7,300 crore, underlining the preference of Indian investors in volatile financial markets. The idea behind most investments is wealth creation over a long period of time.

However, not many make it to the wealthy end. There are several reasons behind the not so happy ending. While markets remain volatile and do not care about your investments, your own actions sometimes are detrimental to your dreams.

Here is a list of mistakes mutual fund investors must avoid to ensure one makes money by investing in mutual fund schemes:

Ignoring your financial goals

This should be the worst thing you can do while investing. Never forget that you are investing because you have to achieve your financial goals. Investing without a goal is akin to travelling without a destination.

If you ignore your financial goals, you will end up investing in avenues that do not suit your needs. For example, if you have to accumulate Rs 1 lakh to pay for your child’s fees next year, it makes sense to start investing in a recurring deposit every month or put that money in a fixed deposits maturing at a time when you need it. But if you invest that money in an equity mutual fund, the market may give you a rude shock.

The same holds true for long term investments such as retirement. “Never invest that money in a dividend option of a mutual fund. It does not let the money compound as many times investors forget to reinvest dividend income. Introduction of dividend distribution tax on equity funds further eats into your returns,” says Abhinav Angirish, founder and chief executive officer of investoneline.in. He recommends investing in growth options of schemes if you are saving for long term financial goals.

Trying to time the market over time in the market

While the SIP book is growing there is no dearth of investors who prefer to stand at the other extreme. These are these investors who prefer to time their investments to maximise their returns. Some even prefer to sell their investments when the markets appear overpriced. However, it does not work for most of them barring a few lucky folks. Some keep waiting for the markets to correct while others repent as to why they sold at the previous top.

Instead, it makes sense to keep investing at regular interval and let your money grow over a long period of time. “Invest in equity fund through SIPs and hold your investments for the long term. This will help you overcome timing risk,” says Jitendra Solanki, founder, JS Financial Advisors.

Chasing high returns

For many first time investors, the best way to choose mutual fund schemes is to sort them based on their historical returns. However, it may not be the best way to do so. For example, if you have tried picking a debt fund in December 2016 on the basis of past returns, you would have definitely picked up a long-term gilt fund. Over the next 12 to 15 months, you would have burnt your fingers thanks to two factors:

• Past returns were an outcome of falling interest rates.
• Interest rates rose in 2017 and 2018. One need to understand how mutual fund schemes work and not just rely on past numbers.

Investing in too many schemes

“This is one of the most common mistakes investor commit thinking that they are diversifying. They tend to forget that each mutual fund scheme has a diversified portfolio of securities,” says Angirish. More schemes you buy, more difficult it becomes to keep a track of them. Instead build a portfolio of two or three well managed schemes and keep adding to your investments.

Ignoring risk profile and asset allocation

This is pertinent in heady markets. Investors get carried away and suffer from the fear of missing out. “In a bull market, investors with moderate risk taking ability come under peer pressure, ignore their risk profile and invest in risky avenues such as equity funds. The bull markets further skews the balance in favour of equities,” observes Angirish. This situation may lead to big losses in case the markets take a U-turn, especially when investors opt for smallcap and midcap focussed schemes, as quick falls can evaporate gains earned over months and years.

Solanki advises sticking to your risk profile. Instead of going with the crowd, it makes sense to strictly adhere to one’s asset allocation.

Investing all your money at one go

Investing large sums in equity mutual funds is a tricky game. Not many investors can handle the situation emotionally. The best way to avoid it is to write all cheques and sign all the forms in one go or click wherever required at one go. However, this is not the best method. You are exposing yourself to timing risk. It makes sense to take a staggered approach to investing. “Systematic transfer plan helps you to invest at regular intervals and optimise your returns,” says Solanki.

Not reviewing

Mutual funds are vehicles to invest in various asset classes such as gold, equity and bonds. Each fund manager has his way of making money for his investors and is governed by the scheme’s objective. The investors are expected to keep a track of his scheme’s performance from time to time. It makes sense to conduct a periodical review of all your mutual fund schemes and weed out underperformers, if any. Failing to review can cost you a fortune.

Disclaimer: The views and investment tips expressed by investment experts are their own and not that of the website or its management. Users are advised to check with certified experts before taking any investment decisions.

Source: Moneycontrol.com

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

Kotak Mutual Fund launches balanced advantage fund

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

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Kotak Mutual Fund today announced the launch of Kotak Balanced Advantage Fund, an open-ended asset allocation fund with an objective to generate capital appreciation from a dynamically balanced portfolio of equity and equity related securities, debt, and money market securities.

It will follow a multi-cap approach for equity allocation, dynamic bond approach for debt allocation. The new fund offer (NFO) opens on July 13 and closes on July 27. The scheme will re-open for continuous sale and repurchase from August 10.

“The equity market is expected to remain range bound in near term due to high oil prices and rupee depreciation.However fundamentals, like corporate earnings, remain positive,” Kotak Mutual Fund chief investment officer (equity) Harsha Upadhyaya told reporters here.

*********** Shakun Polymers to invest Rs 68 cr to expand capacity *

Vadodara-headquartered Shakun Polymers a player in the field of compounding for the wire and cable market today said it is investing Rs 68 crore towards capital expenditure to expand its capacity from 12,000 tonnes per annum (tpa) to 27,000 tpa.

It has two manufacturing facilities at Halol district in Gujarat and one at Daman. The compounds manufactured by Shakun are used for insulation and sheathing of wire and cables for various applications such as: power cables, building wires, telecommunication and fibre optic cables, instrumentation cables and photovoltaic cables.

The company said it has received Sebi nod for its proposed initial public offer (IPO). The public offer comprises of fresh issue of equity shares aggregating up to Rs 75 crore and an offer for sale of up to 18 lakh equity shares by selling shareholders. The company hopes to hit the capital market in Q2 FY19.

*********** HMSI launches new edition of entry level bike CD 100 Dream DX *

Honda Motorcycle & Scooter India today announced the launch a new edition of its entry level bike CD 110 Dream DX with price starting at Rs 48,641 (ex-showroom, Delhi).

The latest edition of the CD 110 Dream DX comes with added features such new attractive gold graphics and chrome muffler protector, a release said.

“The iconic CD brand has been winning the trust of millions of customers globally since 1966. Taking forward its legacy, 2018 CD 110 Dream DX offers the same level of trust and reliability. We are confident that the new edition too will garner good response from our customers especially when there are sentiments in rural demand,” said Yadvinder Singh Guleria, senior vice president sales and marketing, Honda Motorcycle and Scooter India.” ************ Mahindra MF names V Balasubramaniam as chief equity strategist *

Mahindra Mutual Fund, a wholly owned subsidiary of Mahindra and Mahindra Financial Services Limited (MMFSL) announced appointment of V Balasubramaniam as chief equity strategist.

Bala has spent over 28 years investing in the Indian securities markets and was, until recently, the chief investment officer at the IDBI Mutual Fund.

Mahindra Mutual Fund also appointed Srinivasan Ramamurthy as equity fund manager. Srini joins the company from the IDBI Group as well, where he was managing equity and hybrid strategies for over 6 years.

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

Who let the bulls out?

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

Listen to the Article (6 Minutes)

The familiar tune of the old song may ring in your head as it did in mine while thinking of a title for this piece. A tiring, boring, frustrating two-month trading range. And finally, a break out at last.

While the rain Gods opened up the heavens on Mumbai, bulls decided to open the market’s upside, and the result- a strong 100 point rally that’s taken the Nifty past several important resistance levels in a swift move.

So is it really a big deal? Well yes, because in three sharp sessions the market has not only crossed the Karnataka election result day high, but it has done so in style.

Tuesday’s session had all the signs that announce a revival of the rally – wide participation across sectors, a return of midcaps and a let up in FII selling.

The rally seen so far this week is not supported on just a few key index heavyweights but a wide array of stocks – giants like RIL and the HDFC twins are leading from the front.

Commodity stocks like GAIL and Hindalco found their mojo on Tuesday and autos have been firing strong ever since June sales numbers were released. There are also the odd L&T and HUL which have been pitching in, on and off.

That’s not all. Tuesday’s move, much like Monday’s was a clean one – all dips were bought and the rally went on to the broader market as well.

Interest is slowly but clearly returning in midcaps – and not just in the big well-known names like an Ashok Leyland or Jubilant Food but even some of the forgotten stocks that fell off the radar in the midcap meltdown over the last two months.

So what led to this break out now? And more importantly, will the upside last?

Cynics will argue that trade war issues are still a reality, Brent is knocking at the doorsteps of $80 and Indian macros including the Rupee still look vulnerable.

But markets always discount the future and more often than not have a way of surprising even the most informed investors. The one thing the current rally may be beginning to price in is an expected earnings upswing.

TCS and IndusInd bank has given the Q1 reporting season a flying start. You really can’t sound pessimistic in the face of 30% loan growth nor can you laugh off TCS’s 4% constant currency growth that’s topped all street estimates.

Most brokerages have an upbeat forecast for the first quarter largely because the base period suffered from destocking ahead of the GST rollout as well as the residual impact of demonetisation.

Also with monsoons being largely favourable so far and an expected pick up in rural spending ahead of elections, the mood on the micros is largely positive.

Motilal Oswal, for instance, expects Nifty Companies to deliver 23% sales growth and a 26% growth in profits in the first quarter – that would be the highest earnings growth in 16 quarters.

Antique puts its Nifty Q1 earnings growth estimates at 17% and the number Kotak is going with is 12%. Now, this is not to say that PSU banks won’t report high provisioning or that we won’t see any ugly midcap disappointments – those will take place and the stocks will get adequately punished.

But for now the bulls seem to be in a mood to take on the pessimism.

Show me the money!

If the bulls are going to put up a fight to retain these levels and maybe even aim for Mount Everest (read 11,200 on the Nifty), they need to be backed up by liquidity.

And here, the trend gets interesting. Its still early days but data shows the spate of FII selling seems to be somewhat ebbing. After seeing an outflow of over Rs 10,000 crore in May and nearly Rs 5000 crore in June, July FPI numbers are actually positive – a net inflow of Rs 315 crore so far.

Of course the slight worry, on the other hand, is the tapering off in domestic mutual fund inflows over the last few months. Net inflows into equity funds are down 32% in June over May.

Mutual fund CEOs and fund managers, however,  are keeping their faith in the loyal SIP investor and say there are no large-scale redemptions so far.

Where does this leave the market? 

Despite all the volatility of the last few months, the Indian market hasn’t actually done too bad on the global arena at least at the index level.

The Nifty is up 4% so far this calendar year – almost in step with the S&P 500. We are also much better off than our Chinese neighbours which have seen their equity market drop 16% in 2018.

India has also outperformed much of the Asian region with markets in Singapore, Thailand, South Korea & Indonesia down between 3-7%

Bulls may have wrestled control for now, but money will have to fuel this fight for them to continue their bravado.

Apart from liquidity drying up, a bigger oil price shock is the other major risk to this rally. And then, of course, there is politics and state elections that are bound to keep the market volatile.

So yes, while it may not be a one-way street, for now, the bulls are surely enjoying their rain dance on it.

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

How mutual fund ratings are changing after SEBI’s fund reclassification

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

Listen to the Article (6 Minutes)

Following SEBI’s reclassification of the mutual fund market in India, there has been a change in the way rating agencies, whose ratings form an important basis for the investors to make their investment decisions, rate funds.

Prior to reclassification (the process completed on June 30), there were numerous schemes with similar investment objectives available in the market. In order to scrutinize the performance of the mutual fund, investors relied on the ratings provided by various rating agencies such as Morningstar, Value Research, CRISIL, ICRA, Brickworks etc.

Reclassification has resulted in categorization of schemes basis their investment objective leading to fewer schemes in the market and also change in the name, category, fundamental attributes etc.

However, with the reclassification of mutual funds, there will be a change not only in basis of arriving at performance ratings by rating agencies, but also in the method of analysis to be adopted by the investors while reviewing the performance of the schemes for making investment decisions.

What does the rating reveal?

Ratings act as an indicator of health of the mutual fund, taking into consideration a combination of risk-adjusted performance parameters over various time frames, which are compared against the funds within the same category. Some rating agencies take into account various quantitative and qualitative parameters while evolving the ratings for a fund, such as returns, liquidity, risk-return trade-off, asset concentration, asset quality, corpus size, portfolio turnover, fund managers experience, number of schemes to fund manager ratio, proportion of AUM performance etc.

Different rating agencies often consider contrasting parameters in rating a scheme and arrive at different ratings. This happens due to the difference in weights attached by these agencies to various parameters. Some agencies emphasize on parameters like credit rating of underlying securities and other risk factors, while some agencies rely on past performance for their ratings.

Analyzing the possible scenarios in rating to be taken up post reclassification:

Many of the rating agencies hope to adopt the following methodology:

No change in category: The ratings will remain the same.

Minor changes in category: The rating agencies will apply an average degree of similarity between the current category and the fund’s historical categories.

Major Change in category: In such cases some rating agencies have suggested that where no historical returns of the fund become relevant, then they might suspend the rating till a reasonable period has elapsed after the reclassification.

Past Performance:

For the purpose of disclosure of the past performance, SEBI has issued a circular with various possibilities of merger of schemes and the resultant effect of the same. First scenario, schemes A and B having similar features and objective, merge to form A, the surviving scheme. Here the weighted average performance of both the prior schemes needs to be disclosed. Second scenario, schemes A and B merge and the features of only B is retained, then the weighted average performance of only B needs to be disclosed. Third scenario, schemes A and B merge, resulting in the formation of a new scheme C which does not entail the features of schemes A or B.

One of major effects in the third scenario of reclassification is when due to merger of schemes the past performance will not be carried into the new scheme, wherein as a result of merger, there will be little or no data available on performance, which will have to be accumulated over a period of time.

This unpredictability needs to be weighed in by the Investors, who intend to invest or divest from such schemes, as the performance reflection made by the rating agency might not take into account the weighted average performance of the prior schemes, creating uncertainty among the investor group.

Investor guidelines while investing in mutual fund:

With reclassification of mutual funds, some schemes have undergone changes in their primary features resulting in skepticism from investors on the ratings provided.

Investors need to collectively analyze the quantitative + qualitative aspects of the fund to understand the changes affecting their investments. If there is a significant change in the investment style and return positioning of the scheme, then the investor needs to analyze the overall impact on their portfolios and also tax implications and exit load impact.

Due to this substantive change in the schemes, rating agencies also believe that they will have to refine their rating methodology which shall bring out the actual performance rating as against just riling on the past performance of the funds. Therefore, it is advisable that a holistic understanding of the realigned schemes must be taken into consideration before making any changes to the respective investor portfolios.

Disclaimer: The views and investment tips expressed by investment experts are their own and not that of the website or its management. Users are advised to check with certified experts before taking any investment decisions.

Source: Moneycontrol.com

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

Here are five ways to e-verify your income tax return

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

Listen to the Article (6 Minutes)

After filing your income tax returns, you need to get your ITR-V (return filing acknowledgement) verified. Earlier, it was mandatory for taxpayers to send the physical copy of ITR-V duly signed to income tax department in Bengaluru within 120 days of e-filing income tax return. Now, taxpayers can e-verify it in minutes in five different ways as explained here.

How e-verification process works?

Your income tax returns can be e-verified by generating an Electronic Verification Code (EVC) which is a 10-digit alphanumeric code and unique to a PAN. On one EVC code only one online income tax return can be verified, so in case you revise your income tax return, you need to generate another EVC. After verifying your return via EVC, you are no longer required to send the physical ITR-V to CPC Centre, Bengaluru. Let’s understand ways to obtain EVC code:

1. E-verification through Net Banking

Login to your net banking and check whether they are authorised by the income tax department to provide e-verification facilities. Also, your PAN should be validated via KYC before using this method. Then login to your net banking account and select e-verify option, which will redirect you to the government e-filing portal. Here, click on my account on e-filing page which will generate the EVC. This will be sent on your registered email id and mobile number. Using this EVC you can then e-verify your return.

2. E-verification through Aadhar card OTP

To use this e-verification mode, login to government’s e-filing portal. Your Aadhar card should be linked with this portal to generate OTP for e-filing. Then click on the option ‘generate Aadhaar OTP to e-Verify my return’. After Aadhaar is authenticated and linked, an OTP will be sent to the taxpayer’s registered mobile number. Then this OTP can be used to e-verify the tax return. This OTP is valid for 10 minutes. After completing this e-verification method, you can download the acknowledgement from registered email address.

3. E-verification through government e-filing portal

To e-verify IT returns using government e-filing portal www.incometaxindiaefiling.gov.in, taxpayers need to meet certain criteria i.e. income should be less than Rs 5 lakhs and you do not claim a refund. To use this mode, directly log on to the government’s e-filing portal mentioned. After login, click on e-verify and the EVC is sent to your registered email address and mobile number. Use this EVC to complete the e-verification process. However, it’s recommended to use other methods discussed for e-verification if you don’t meet the set criteria or you are unsuccessful to complete the process.

4. E-verification through Bank’s ATM

Some banks are registered with the IT department for providing e-verification facility. So check with your bank before proceeding. EVC can be generated by swiping your ATM card in your bank ATM and by selecting an option of Pin for e-filing. Then EVC will be received on registered mobile number which can be used to verify your income tax returns on government portal. This method is useful if you are unable to login to your net banking account to generate EVC.

5. E-verification through Demat account

Before using this method, you need to provide your depository details on government e-filing portal which should be confirmed by the depository. Then select profile setting on portal and pre-validate your demat account. Choose verification mode as EVC using a demat account. You will receive EVC on your registered mobile number. Enter this EVC on e-filing portal to complete the verification process.

Disclaimer: The views and investment tips expressed by investment experts are their own and not that of the website or its management. Users are advised to check with certified experts before taking any investment decisions.

Source: Moneycontrol.com

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

Eye on Earnings: These 10 stocks may double their net profit on year-on-year basis in Q1 FY19

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

Listen to the Article (6 Minutes)

India Inc will start unveiling results for the quarter-ended June starting this week, beginning with bellwether IT names like Tata Consultancy Services and Infosys. Most brokerages expect a double-digit earnings growth for Nifty companies in first quarter of financial year 2019.

Rupee depreciation versus the dollar, higher current account deficit and rising crude prices remain a concern. Experts see some recovery in the banking sector as much of the asset quality pain is already recorded and insolvency resolutions are underway.

Revival in rural demand on the back of a normal monsoon, higher minimum support price and positive sentiment is benefitting the domestic consumption theme. With significant stress recognition already undertaken by banks, asset quality would be relatively better in first quarter FY19e.

“The economy has witnessed a significant improvement in the demand environment over the last 4 quarters, which is evident from the revenue growth of Sensex companies that are up 10% year-on-year compared to average growth of 2% year-on-year over the past 12 quarters,” ICICIDirect said in a note.

“We expect revenue growth to further accelerate to 15% year-on-year in first quarter FY19e given the broad-based pick-up across sectors, except telecom. Going forward, with much of the asset quality pain already recorded, IBC resolutions underway in the banking space, firm rural demand and pick-up in industrial activity, we expect earnings to stage an impressive recovery, growing in excess of 20% CAGR over FY18-20e,” it stated.

The first six months of 2018 was like a roller coaster ride for Indian markets. The next six months are unlikely to be any different, but one thing which provides comfort is earnings growth that could hit the double-digit market in the next 2 fiscals.

Risk for the market remains more on the downside than on the upside, Mahesh Nandurkar, India Strategist, CLSA, said in an interview to CNBC-TV18. Even though the earnings multiple remains high for the Indian market, the brokerage is confident of a strong economic recovery in the next 2 fiscals.

“We are building a reasonable 20% earnings growth in fiscal year 2019 and fiscal year 2020 with a bottom-up perspective. The earnings downgrade trend has not ended as yet, as even in the March quarter results we saw some downgrades. In fiscal year 2019, there is still a risk to the downside in certain sectors,” he stated.

Here is a list of top 10 stocks from different brokerages that may more than doubled their net profit on a year-on-year basis in the June quarter:

From Kotak Institutional Equities

Apollo Tyres: PAT likely to grow 173 percent year-on-year

Kotak Institutional Equities expects Apollo Tyres’ first quarter net profit to grow 173% year-on-year to Rs 241.80 crore. Net sales are likely to rise 21% year-on-year to Rs 3,988.90 crore.

Standalone revenues are expected to increase 20% year-on-year due to:

• 19% percent year-on-year increase in tonnage volumes on the back of a strong pick-up in the medium and heavy commercial vehicle segment (partly due to lower base) and continued strong growth in the passenger vehicle segment.
• Slight increase in average selling price.

The brokerage expect earnings before interest, tax, depreciation and amortisation (EBITDA) margin to remain flattish on a sequential basis (up 590 basis points year-on-year) as price increases will offset raw material cost pressures. Europe revenues are likely to grow 23% year-on-year, led by double-digit volume growth and benefit of the euro appreciation versus the rupee.

Ashok Leyland: PAT likely to grow 234% year-on-year 

It expects net profit of Ashok Leyland to grow 234% year-on-year to Rs 372.30 crore in first quarter.

Kotak Institutional Equities sees revenues increasing 51% year-on-year led by:

• 48% year-on-year growth in volumes.
• Price increases undertaken by the company. EBITDA is likely to grow 111% year-on-year as it expects EBITDA margin to improve 290 bps due to operating leverage benefits. This despite a 160 bps year-on-year decline in gross margin due to increase in commodity costs.

MRF: PAT may grow 258% year-on-year 

The brokerage expects MRF’s net profit to grow 258% year-on-year to touch Rs 382.30 crore for the quarter ended June. It expects revenues to grow 15% led by strong double-digit volume growth across segments and 1-2% higher realisations on account of price increases undertaken by the company. Kotak Institutional Equities has found a strong pick-up in two-wheeler replacement segment volumes. EBITDA margin is likely to remain largely flattish on a sequential basis (up 1,020 bps year-on-year) as RM cost pressures will be offset by price increases.

Jubilant FoodWorks: PAT likely to grow 168% year-on-year 

Kotak Institutional Equities expects net profit of Jubilant FoodWorks to grow 168% year-on-year to Rs 64 crore. EBITDA margin is likely to expand 400 bps year-on-year despite a 245 bps contraction in gross margin, aided by leverage, cost-saving initiatives and Goods & Service Tax-related opportunities.

United Spirits: PAT may grow 284% year-on-year

It expects net profit of United Spirits to grow 284% year-on-year to Rs 242.10 crore for first quarter. “We model a 14% net revenue growth led by 9.3% growth in underlying volumes off a low base. On a reported basis, we expect lower volume growth of 8.2% percent year-on-year on account of low-end franchising impact.” The domestic brokerage firm modelled 245 bps year-on-year expansion in gross margin on account of RM softness. At an EBITDA level, it expects expansion to be higher at 450 bps year-on-year driven by leverage benefits and cost-rationalisation measures.

From ICICIdirect.com

Jyothy Laboratories: PAT is likely to grow 141.6% year-on-year 

The net profit of Jyothy Laboratories is expected to grow 141.60% year-on-year to Rs 49.80 crore. ICICIdirect.com is likely to post a 26.3% year-on-year sales growth backed by strong growth in the dishwashing and fabric care segments. GST-related trade channel disruption witnessed in first half of financial year 2018 normalised in third quarter, driving volume growth in fourth quarter and is expected to drive volumes in first quarter of financial year 2019 also (first quarter of financial year 2018 saw steep volume de-growth of 17% year-on-year). The brokerage expects margin to surge 550 bps on robust topline numbers.

Prabhat Dairy: PAT likely to grow 111.8% year-on-year 

ICICIdirect.com expects net profit of Prabhat Dairy to grow 111.8% year-on-year to Rs 12.40 crore. Higher volume on the back of increasing capacity utilisation of the cheese facility would drive sales growth of 13.6% to Rs 408.4 crore. Milk procurement prices have fallen 10% year-on-year to Rs 22. “We expect operating margins to improve 52 bps year-on-year to 8.4%. Net profit is expected to grow to Rs 12.4 crore.”

Cadila Healthcare: PAT may grow 240.3% year-on-year 

Cadila Healthcare is likely to deliver a 240.30% year-on-year growth to Rs 471 crore. Revenues are expected to grow 45% to Rs 3,229 crore due to continued windfall of gLialda and strong growth in domestic formulations (albeit on a lower base). EBITDA margins are likely to improve 925 bps year-on-year to 21.2% on better product mix, lower research spends and base effect (GST impact). Net profit is expected to increase 240% year-on-year to Rs 471 crore on strong operational performance.

Dr Reddy’s Laboratories: PAT likely to grow 365% year-on-year 

It expects Dr Reddy’s Laboratories’ net profit to grow 365.70% year-on-year to Rs 310.20 crore. Revenues are likely to increase 7% to Rs 3,577 crore due to 30% growth in India. But the same is likely to be partially offset by muted growth in the US. EBITDA margins are expected to improve 756 bps year-on-year to 17% on better product mix and lower base (GST impact). Net profit is expected to increase to Rs 310 crore against Rs 67 crore in first quarter of financial year 2018 due to strong operational performance and lower tax rate (23% versus 29.4% in first quarter of financial year 2018).

Natco Pharma: PAT may grow 164.40% year-on-year

ICICIdirect.com expects Natco Pharma net profit to grow 164.40% year-on-year to Rs 248.50 crore. Revenues are likely to grow 54% to Rs 660 crore due to complex products launches in the US (gCopaxone, gDoxil). EBITDA margin are likely to increase to 50% from 31.9% year-on-year on continued gCopaxone windfall.

Disclaimer: The views and investment tips expressed by investment experts are their own and not that of the website or its management. Users are advised to check with certified experts before taking any investment decisions.

Source: Moneycontrol.com

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

Five value buys that could return 11-16% return in 1-2 months

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

Listen to the Article (6 Minutes)

The markets got off to a positive start for the week following positive global cues. The Nifty closed at 10,853, up 0.74% on Monday. The index formed a ‘Hanging Man’ kind of candlestick pattern on the daily chart, which is a reversal pattern.

The index has managed to close above the falling resistance line connecting the high of 11,172 after previous failed attempts. The daily moving average convergence divergence (MACD) line has given a positive crossover, with its average suggesting that the consolidation phase is now over.

If it continues to hold above 10,790, the index can rally initially towards 10,929 and then possibly towards 11,100 levels.

On the downside, a break below 10,790 levels could see profit-booking towards 10,710 levels. In Nifty options, a significant amount of put writing was seen at 10,700 and 10,800 strikes, while call writing was seen at the 11,000 and 11,100 strikes suggesting that the range is shifting higher.

Decline in India VIX to 12.39 levels over the past 1 week has been supportive for the market.

Here is a list of top 5 stocks that could return 11-16% in the next 1-2 months:

Yes Bank Limited: Buy| CMP: Rs 363| Stop loss: Rs 348| Target: Rs 410| Return 13%

The stock has been range bound between the range of Rs 380 and Rs 285 odd levels in the last one year. The stock has formed a bullish inverted head and shoulders pattern on the weekly chart and trading below its breakout level.

The daily MACD line has moved above the neutral level of zero and on the weekly chart, it has given a positive crossover with its average above the neutral level of zero which suggests that the stock has started a fresh uptrend.

The price has given a breakout from the Bollinger band with the expansion of band and is now trading above the upper band indicating strength in the uptrend.

In the last three sessions, the stock has witnessed good volumes and the momentum suggests buying participation. The stock is likely to see a breakout on the upside from the pattern. Thus, it can be bought at current levels and on dips to Rs 360 with a stop loss below Rs 348 and a target of Rs 410 levels.

Exide Industries Limited: Buy| CMP: Rs 268| Stop Loss: Rs 253| Target: Rs 310| Return 15%

The stock has formed a rounding bottom pattern over a period of one year between the levels of Rs 250 and Rs 195 odd levels. At the start of the month of May, stock witnessed a breakout from the base on huge volumes and price momentum to touch an all-time high of Rs 270 levels.

Since then the price has been trading in a range between Rs 270 and Rs 250 odd levels and is consolidating above the breakout level for the past two months now.

On the daily chart, the price has given a breakout from the Bollinger band with the expansion of band and is trading above the upper band suggesting that the stock is likely to see a start of a fresh uptrend.

MACD line on the daily chart has moved above the neutral level of zero after two months indicating consolidation phase is over. Thus, the stock can be bought at current levels and on dips to Rs 263 with a stop loss below Rs 253 and a target of Rs 310 levels.

Maruti Suzuki India Limited: Buy| CMP: Rs 9,375| Stop Loss: Rs 9,050| Target: Rs 10,400| Return 11%

The stock is in a long-term uptrend forming higher tops and higher bottoms on the weekly as well as on the monthly chart. In December last year, it hit an all-time high of Rs 9,966 and since then the price was in a corrective decline phase for more than six months.

Now, the stock has crossed its falling resistance trend line with momentum indicated by a long bullish candle on the weekly chart.

The weekly MACD line has given a positive crossover with its average for the first time since January after testing the equilibrium level. The price has given a breakout from the Bollinger band with the expansion of band and closed above the upper band on daily as well as a weekly chart.

Thus, the stock can be bought at current levels and on dips to Rs 9,260 with a stop loss below Rs 9,050 and a target of Rs 10,400 levels.

KPIT Technologies Limited: Buy| CMP: Rs 280| Stop Loss: Rs 265| Target: Rs 320| Return 14%

The stock is in an uptrend forming higher tops and higher bottoms for the last one year. The stock hit an all-time high of Rs 290 last month, and since then the price has been consolidating at higher levels.

The stock has formed a symmetrical triangle pattern which are generally expected to give a breakout in the direction of the previous trend which in this case is on the upside.

The price has formed a long bullish candle with above average volumes and closed at the breakout. The relative strength index or the RSI on the daily chart has given a positive crossover with its average suggesting stock is likely to see a breakout on the upside.

Thus, the stock can be bought at current levels and on dips towards Rs 275 with a stop loss below Rs 265 and a target of Rs 320 levels.

Berger Paints (I) Limited: Buy| CMP: Rs 301| Stop Loss: Rs 285| Target: Rs 340-350| Return 16%

The stock has been consolidating at higher levels between Rs 280 and Rs 230 odd levels for the past one year. In May, the stock witnessed a breakout on the upside backed back by high volumes.

Since then the price has been trading above its previous highs and is now consolidating. In the last couple of session, the stock has witnessed high volumes with positive price action which indicates buying participation in the stock.

The price has given a breakout from the Bollinger band with the expansion of band and is trading above the upper band which suggests that the stock is likely to see a continuation of the trend on the upside.

The daily MACD has given a positive crossover with its average and moved above the neutral level of zero. Thus, the stock can be bought at current levels and on dips towards Rs 295 with a stop loss below Rs 285 for a target of Rs 340-350 levels.

Disclaimer: The views and investment tips expressed by investment experts are their own and not that of the website or its management. Users are advised to check with certified experts before taking any investment decisions.

Source: Moneycontrol.com

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

Sensex above 36,000, Nifty reclaims 10,900; these five factors driving market uptrend

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

Listen to the Article (6 Minutes)

The Nifty after falling more than 10% from its record highs has showed a gradual rebound of more than 9%. It is currently trading above 10,900 levels after hitting a 2018 low of 9,998.05 in March. The Sensex has rallied more than 200 points to trade above 36,000 levels.

Experts said the market has taken all negatives into its stride: global trade tensions, carnage in mid and smallcaps, interest rate hike concerns, et al.

“The market is trading rock steady right now despite rising oil prices and global trade war tensions. Some investors were a little bit circumspect after the stellar rally in 2017. I am not bearish right now, but maintain a selectively bullish bias,” said Dipen Sheth of HDFC Securities.

However, Vivek Ranjan Misra, head-fundamental research, Karvy Stock Broking, said the Nifty is currently trading at 12-month forward price-to-earnings ratio of 18.3 times, which can hardly be described as ‘cheap’.

Here are five factors that have been driving this rally:

Global trade tensions:

Last Friday, US imposed tariffs on $34 billion Chinese goods. China immediately retaliating with duties on the same amount of US products. Experts said that concerns over a looming trade war that has dominated headlines for the past one month seem to have eased for the time being and is completely priced in. “That is driving the relief rally or recovery in global markets.”

Corporate earnings

Globally, investors have shifted their focus from trade tensions to June earnings. Experts said hopes of a major earnings recovery in the second half of FY19 is driving the market rally.

“We have seen seeing a significant improvement in the demand environment over the last 4 quarters, which is evident from the revenue growth of Sensex companies, up 10% year-on-year compared to average growth of 2% year-on-year over the past 12 quarters,” ICICIDirect said in a note.

It expects revenue growth to further accelerate to 15% year-on-year in first quarter of FY19e, given the broad-based pick-up across sectors, except telecom. “Going forward, with much of the asset quality pain already recorded, bankruptcy resolutions underway in the banking space, firm rural demand and pick-up in industrial activity, we expect earnings to stage an impressive recovery, growing in excess of 20% CAGR over FY18-20e,” it stated.

Have mid- and smallcaps bottomed out?

The carnage in mid-and smallcaps was the major cause for concern. Small and midcap indices have corrected by around 25-30%, while some stocks have plunged over 50%. But they seem to be nearing their bottom, Vivek Ranjan Misra, head-fundamental research, Karvy Stock Broking said.

Nandish Shah, technical & derivatives analyst at HDFC Securities, seconded Misra. “Though the positional set-up for the midcap and smallcap indices is still bearish, with lower tops and bottoms, both indices seem to have reached the oversold zone, which could trigger a relief or pullback rally in coming days,” he explained.

Stability in the rupee and crude

Depreciation in the rupee versus the dollar led to a correction in the market, but that seems to have stabilised now. The Indian unit touched an all-time low of 69.09 against the dollar in June, but since then it has been trading in a range of 68-69.

“The rupee depreciation should be seen largely in the context of depreciation of emerging markets (EMs) and strengthening of the dollar. This is on account of higher US rates. A few additional factors are driving the trend, the first is the risk of a widening current account deficit on account of oil prices. Secondly, with general elections approaching political risk is rising,” Vivek Ranjan Misra said.

“While a big part of the move is probably done, expect the currency markets to remain weak, he added.

Technical outlook

The Nifty reclaimed the 10,900 mark for the first time since February 1, which means it took more than 5 months to hit that level again. It also surpassed its near term resistance level of 10,920 today and hit an intraday high of 10,922.30.

Technically, this indicates that the upward move could continue if the index holds around 10,900 levels for few more days.

“The Nifty managed to close above its crucial resistance level of 10,800 on Monday, derived from the downward sloping trend line adjoining the all-time high of 11,171 (January 29) and the intermediate top of 10,929 (May 15), indicating a bullish trend reversal,” Shah said.

He further said the index is comfortably trading above its 20, 50, 100 and 200-day daily moving average, which indicates that the trend is bullish for the short to medium term. “As far as supports are concerned, immediate support is seen at 10,700, followed by far one at 10,550.”

Disclaimer: The views and investment tips expressed by investment experts are their own and not that of the website or its management. Users are advised to check with certified experts before taking any investment decisions.

Source: Moneycontrol.com

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