Devyani International: Quick service model will fuel growth

Devyani International: Quick service model will fuel growth

Shares of Devyani International jumped nearly 7.5% on Tuesday in early deals as expert believe the operator of KFC, Pizza Hut and Costa Coffee to benefit from its quick service restaurant business model.
The counter opened 2.6% higher at Rs 142.70, from its previous close of Rs 139.05, and hit the day’s high at Rs 149.40. So far this year, the stock has corrected 23%.
Devyani International’s earnings performance will reflect the growth momentum in coming years. Its EBITDA CAGR is pegged at 37% for FY20-24.

Devyani International had launched its Rs 1,838-crore initial public offering in early August and garnered a stellar subscription of 116.71 times, generating bids for 1,313.79 crore equity shares against an offer size of 11.25 crore equity shares.
The Devyani International stock price was listed at Rs 141 on the BSE and Rs 140.90 on the National Stock Exchange, against the issue price of Rs 90 per share on August 16.

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Coal India approves payment of interim dividend for FY22

Coal India approves payment of interim dividend for FY22

Shares of Coal India (CIL) surged in Tuesday’s opening deals after India’s largest coal miner received board approval for payment of interim dividend at Rs 9 per share of the face value of Rs 10 as against Rs 7.5 per share announced last year.
The PSU company has fixed Friday, December 7, 2021 as the record date for the purpose of payment of interim dividend on the equity shares for the financial year 2021-22. Whereas, the date of payment of interim dividend is on and from December 21, 2021.

Meanwhile, CIL’s Q2FY22 e-auction premiums were disappointing. However, the management highlighted that the current premium is over 50% compared to the 15.3% reported in its Q2FY22 result. It has re-started e-auction to non-regulated sectors, which should result in improved profitability.
Management expects a price hike to offset an increase in wages, given the current strong demand environment and high international coal prices.
ts dispatch guidance for FY22 has been increased to 660-670mt compared to its previous guidance of 640mt. This is in light of a recovery in demand, especially from the power sector. With a recovery in demand from the power sector, supplies to non-regulated sectors had been squeezed. The same has now begun to recover as both production and dispatches have improved post monsoon.

The supply of coal to the power sector by CIL during the last month also increased 21.7 per cent to 47.67 MT, over 39.17 MT in the year-ago period, it said.
Coal India accounts for over 80% of the domestic coal output.
The company, which is eyeing one billion tonne of fuel output by 2023-24, will pump over Rs 1.22 lakh crore in projects related to coal evacuation, exploration and clean coal technologies by 2023-24.
Out of this proposed spend, CIL has planned to invest Rs 32,696 crore on coal evacuation, Rs 25,117 crore on mine infrastructure and Rs 29,461 crore on project development by 2023-24.
The company will also invest Rs 32,199 crore on diversification and clean coal technologies, Rs 1,495 crore on social infrastructure and Rs 1,893 crore on exploration works.
The investment of Rs 1.22 lakh crore will be utilised to fund a total of 500 projects.

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This document is meant for the recipient only for use as intended and not for circulation. This document should not be reproduced or copied or made available to others. The information contained herein is from the public domain or sources believed to be reliable. While reasonable care has been taken to ensure that information given is at the time believed to be fair and correct and opinions based thereupon are reasonable, due to the very nature of research it cannot be warranted or represented that it is accurate or complete and it should not be relied upon as such. Also above note is not a recommendation to Buy or SELL and is only a view based on facts and figures and we will be in no way responsible for any losses incurred by anyone who uses this information to either trade or invests securities mentioned herein.

Go Fashion: Debut in style; lists at 90% premium

Go Fashion: Debut in style; lists at 90% premium

Go Fashion share price had a dream debut today at NSE and BSE as the stock opened at robust premium of 90% at Rs 1310 on NSE. Experts are advising lucky allottees of Go Fashion shares to book 50% profit and get their principal back whereas those who failed to get Go Fashion shares during allotment should wait for the profit-booking.
These bidders can wait for immediate Rs 1500 per share target. In case it fails to achieve its Rs 1500 target and comes around Rs 1050 to Rs 1100 per share levels, they should re-enter for the target of Rs 1500.
Go Colors brand operator Go Fashion witnessed tremendous response for its maiden public offer. The women’s bottom-wear brand operator IPO issue was subscribed 135.46 times. It saw the biggest demand from non-institutional investors, who bid for shares 262.08 times the portion set aside for them.

Qualified institutional investors had put in bids 100.73 times the reserved portion, and retail investors subscribed for 49.70 times the reserved portion.
Go Fashion has mopped up Rs 1,014 crore through its public issue that comprised a fresh issue of Rs 125 crore and an offer for sale of Rs 888.61 crore. The funds from the fresh issue will be utilised to roll out 120 exclusive brand outlets, and meeting working capital requirements.

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This document is meant for the recipient only for use as intended and not for circulation. This document should not be reproduced or copied or made available to others. The information contained herein is from the public domain or sources believed to be reliable. While reasonable care has been taken to ensure that information given is at the time believed to be fair and correct and opinions based thereupon are reasonable, due to the very nature of research it cannot be warranted or represented that it is accurate or complete and it should not be relied upon as such. Also above note is not a recommendation to Buy or SELL and is only a view based on facts and figures and we will be in no way responsible for any losses incurred by anyone who uses this information to either trade or invests securities mentioned herein.

IndusInd Bank: RBI’s new norms pave way for Hindujas to up stake

IndusInd Bank: RBI’s new norms pave way for Hindujas to up stake

Shares of IndusInd Bank rose 4% in early trade on Monday as investors welcomed the Reserve Bank of India’s recent decision to permit promoter holding of up to 26% in private sector banks.
The scrip rose to Rs 938 on the National Stock Exchange as against Rs 901.80 at previous close.
IndusInd Bank’s promoters, the Hindujas, had earlier applied to the regulator to increase their holding in the lender.

IIHL Mauritius, the Hindujas’ entity which is the promoter of IndusInd Bank, had applied to RBI to increase its holding to 26 % from the previous cap of 15 %, seeking parity after promoters of rival Kotak Mahindra Bank were given the permission to have their holding at 26 % after dragging the RBI to courts.
The RBI on Friday came out with revised guidelines on private sector banks, allowing for 26 % promoter ownership but did not go ahead with an internal working group’s recommendation to allow corporates to promote banks after protests from various quarters including former governors.
IIHL Chairman Ashok Hinduja believes that the increased promoter holding would lead to enhanced financial strength for the bank and protection for clients.

According to RBI’s current norms, the promoter of a private bank needs to pare holdings to 20% within 10 years, and to 15% within 15 years.
The RBI’s report also said there was no requirement to fix a cap on the promoters’ holding in the initial five years as the existing licensing guidelines have not mandated any cap on promoter shareholding in the first five years.

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This document is meant for the recipient only for use as intended and not for circulation. This document should not be reproduced or copied or made available to others. The information contained herein is from the public domain or sources believed to be reliable. While reasonable care has been taken to ensure that information given is at the time believed to be fair and correct and opinions based thereupon are reasonable, due to the very nature of research it cannot be warranted or represented that it is accurate or complete and it should not be relied upon as such. Also above note is not a recommendation to Buy or SELL and is only a view based on facts and figures and we will be in no way responsible for any losses incurred by anyone who uses this information to either trade or invests securities mentioned herein.

Asian Paints to expand paint manufacturing capacity at Ankleshwar unit

Asian Paints to expand paint manufacturing capacity at Ankleshwar unit

Asian Paints will expand the manufacturing capacity of paint at its Ankleshwar unit to 2.5 lakh kL from 1.3 lakh kL.
It will also expainds its resins and emulsions capacity to 85,000 from 32,000 tonnes.
The capacity expansion plan will result in an investment of Rs 960 crore over the next 2-3 years.
Through this expansion drive, the paint maker aims to thwart growing competition in the segment.
Recent two year standalone performance of Asian Paint remains satisfactory. It’s standalone sales growth rates(up 44%) was better than its nearest rival Berger (up 35.5%). On two-year basis, Berger’s consolidated sales growth was at 39.2% versus Asian Paints at 40.5%.

Also, Berger is estimated to have clocked volume growth of around 20% y-o-y, trailing Asian Paints’ 34% y-o-y volumes growth in the decorative segment.
However, Berger’s operating performance has been better than Asian Paints’ amid the challenges of cost inflation. On a consolidated basis, Berger’s Q2FY22 Ebitda margin fell 333 basis points (bps).
Asian Paints saw its operating margin decline by 1090bps, followed by Kansai Nerolac’s 937bps fall and Indigo Paints’ 690bps margin compression.

As for Berger’s gross margin, it fell 449bps y-o-y impacted by input cost inflation. Asian Paints’ gross margins shrunk by 970bps in Q2FY22. Of course, paint companies are taking calibrated price hikes to protect their margins but they are unlikely to compromise on market share gains by focusing on price hikes. In simple terms, cost inflation concern is unlikely to ease in a hurry.
While input price index is up almost 60% y-o-y, the paint industry and Berger are behind the curve in passing on entire input inflation as they are gaining market shares and would like to continue that instead of just focusing on margins. There will be some signal to the new competitors. The paint industry’s profit pool is likely to be under pressure in H2FY22 and FY23.
It seems Asian Paints is trying to achieve economies of the scale through capacity expansion plan.

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PNB Housing: Baring Asia likely to buy Carlyle’s stake

PNB Housing: Baring Asia likely to buy Carlyle’s stake

Shares of PNB Housing Finance on November 29 jumped 5% higher to Rs 524.75 after the media report suggested that Baring Asia has offered to buy Carlyle’s stake in PNB Housing Finance.
This would give Carlyle an exit from the investment after its attempt to buy a controlling stake in the company got foiled due to corporate governance issues and valuation.
The talks are on between Carlyle and Baring Asia. If General Atlantic & SSG also sell their shares, Baring Asia could own a controlling stake in PNB Housing Finance. The deal may involve an open offer for the shareholders if talks materialise.

Carlyle owns a 32.2% stake in PNB Housing Finance. General Atlantic & SSG own close to 10% stake each in the company.
Earlier this month, PNB Housing Finance reported a 25% decline in net profit at Rs 235 crore in the three months ended September. The housing finance company had posted a net profit of Rs 313 crore in the corresponding period a year ago.
PNB Housing Finance, promoted by state-owned Punjab National Bank (PNB), also scrapped the Rs 4,000 crore preferential issue. The company had wanted to raise equity capital to support the growth.
Among the other key financials during Q2FY22, the company’s net interest margin stood at 3% compared to 3.5% in the year-ago period.

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This document is meant for the recipient only for use as intended and not for circulation. This document should not be reproduced or copied or made available to others. The information contained herein is from the public domain or sources believed to be reliable. While reasonable care has been taken to ensure that information given is at the time believed to be fair and correct and opinions based thereupon are reasonable, due to the very nature of research it cannot be warranted or represented that it is accurate or complete and it should not be relied upon as such. Also above note is not a recommendation to Buy or SELL and is only a view based on facts and figures and we will be in no way responsible for any losses incurred by anyone who uses this information to either trade or invests securities mentioned herein.

Indian Metals to issue bonus shares in 1:1 ratio

Indian Metals to issue bonus shares in 1:1 ratio

Indian Metals and Ferro Alloys (IMFA) on Friday informed that its board has approved at its meeting approved the issue of bonus shares in the ratio of 1:1.
The company has fixed Monday, January 10, 2022 as the record date, for the purpose of ascertaining the eligibility of shareholders entitled for issuance of above bonus equity shares. Indian Metals shares were trading nearly 1% higher in early deals.
The bonus shares will be issued out of permissible reserves (free reserves and/or securities premium reserve account and/or capital redemption reserve account) of the company available as on March 31, 2021. At the meeting, the board also decided to increase the authorised share capital of the company from Rs 38.75 crore to Rs 63.50 crore.

For the September quarter, Indian Metals & Ferro Alloys’ net profit surged three-fold to Rs 143.58 crore against Rs 43.62 crore during the corresponding quarter in 2020.
Its sales jumped 49% to Rs 653.16 crore in the quarter ended September 2021 from Rs 437.58 crore in the year-ago period.
IMFA is a fully-integrated producer of value-added ferro chrome with a capacity of 2.84 lakh tonnes per annum.

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This document is meant for the recipient only for use as intended and not for circulation. This document should not be reproduced or copied or made available to others. The information contained herein is from the public domain or sources believed to be reliable. While reasonable care has been taken to ensure that information given is at the time believed to be fair and correct and opinions based thereupon are reasonable, due to the very nature of research it cannot be warranted or represented that it is accurate or complete and it should not be relied upon as such. Also above note is not a recommendation to Buy or SELL and is only a view based on facts and figures and we will be in no way responsible for any losses incurred by anyone who uses this information to either trade or invests securities mentioned herein.

IEX shareholders approve bonus issue, increase in authorised share capital

IEX shareholders approve bonus issue, increase in authorised share capital

The Indian Energy Exchange (IEX) has received shareholders’ approval for the issue of bonus shares and increase in authorised share capital.
The shareholders of the company have approved the resolutions as contained in the notice by requisite majority on November 25, 2021, through remote e-voting postal ballot process as set out in the postal ballot notice.
On October 21, 2021 the board of the company had approved an issue of bonus shares wherein shareholders will get two bonus shares for every one share held by them.

The bonus shares will be issued to eligible members of the company in the proportion of two new fully paid-up equity share of rupee one each for every one existing fully paid-up equity shares of rupee one each held by them, by capitalising a sum not exceeding Rs 59,91,13,022 out of the company’s free reserves and capital redemption reserve as on March 31, 2021.
The company has also received shareholders’ approval to increase the authorised share capital and consequent alteration in the capital clause of the memorandum of association. The current authorised share capital of the company stands at Rs 40.25 crore divided into 40,25,00,000 equity shares of rupee one each.
The company proposes to increase its authorised share capital to Rs 100 crore divided into 1,00,00,00,000 equity shares of rupee one each to cover the issuance of bonus shares.

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This document is meant for the recipient only for use as intended and not for circulation. This document should not be reproduced or copied or made available to others. The information contained herein is from the public domain or sources believed to be reliable. While reasonable care has been taken to ensure that information given is at the time believed to be fair and correct and opinions based thereupon are reasonable, due to the very nature of research it cannot be warranted or represented that it is accurate or complete and it should not be relied upon as such. Also above note is not a recommendation to Buy or SELL and is only a view based on facts and figures and we will be in no way responsible for any losses incurred by anyone who uses this information to either trade or invests securities mentioned herein.

Tarson Products shares rally after tepid debut

Tarson Products shares rally after tepid debut

Tarsons Products shares rallied sharply on Friday, minutes after having made a tepid debut on the stock exchanges. The stock price rose 20% from the IPO price within minutes to trade at Rs 795 per share, after having listed at a lukewarm Rs 700 apiece.
The stock began trading at Rs 700 per share, up Rs 38 or 5.74% from the upper end of the IPO price band of Rs 662 apiece.
Tarsons Products, a life sciences company, garnered a strong response from investors earlier this month, with all pockets of investors oversubscribing their portion by a strong margin. Overall the IPO of Tarsons Products was subscribed a massive 77.49 times. On listing the stock had a market capitalization of Rs 3,724 crore.
The IPO of Tarsons Products was subscribed 115 times by Qualified Institutional Buyers (QIB), while Non-Institutional Investors’ subscription was more than 184 times the reserved quota.

Retail subscription for Tarsons Products was more than 10 times their portion. Post issue the shareholding of promoters of the company has dropped to 47.3% from 50.78% earlier while public shareholding is up at 52.7% from 49.22%.
Tarsons Products is engaged in the designing, development, manufacturing and marketing of consumables and reusables used in various laboratories.
The company has a diversified product portfolio with over 1,700 SKUs across 300 products catering to research organizations, academic institutions, pharmaceutical companies, contract research organizations, diagnostic companies, and hospitals.
In terms of valuations, considering the TTM (June 2021) adjusted EPS of Rs.16.30 on post-issue basis, the company is going to list at a P/E of 40.61.

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This document is meant for the recipient only for use as intended and not for circulation. This document should not be reproduced or copied or made available to others. The information contained herein is from the public domain or sources believed to be reliable. While reasonable care has been taken to ensure that information given is at the time believed to be fair and correct and opinions based thereupon are reasonable, due to the very nature of research it cannot be warranted or represented that it is accurate or complete and it should not be relied upon as such. Also above note is not a recommendation to Buy or SELL and is only a view based on facts and figures and we will be in no way responsible for any losses incurred by anyone who uses this information to either trade or invests securities mentioned herein.

BlackRock, Canada Pension buy Paytm shares

BlackRock, Canada Pension buy Paytm shares

Several of the biggest investors in Paytm’s record-breaking initial public offering added to their stakes in the Indian fintech giant after shares plunged by as much as 41%, according to media reports.
BlackRock Inc. and Canada Pension Plan Investment Board were among so-called anchor investors in the IPO that bought more Paytm shares on Tuesday and Wednesday, media report suggested.
The stock climbed for a third day on Thursday, rallying as much as 7% to Rs 1,875 in early Mumbai trading. That’s still a fair distance away from its issue price of Rs 2,150 per share.

Paytm’s early tumble ranked among the worst debuts by a major technology company since the dot-com bubble era of the late 1990s. Any sign that influential money managers like BlackRock are doubling down on the company may help ease concern about the sustainability of an Indian stock-market boom that has lured $17 billion of foreign inflows over the past year and stoked a trading frenzy among local individual investors.
Paytm’s shareholders include big-name investors like Warren Buffett’s Berkshire Hathaway Inc. and Masayoshi Son’s SoftBank Group Corp.

The $2.5 billion offering by Paytm, formally known as One 97 Communications Ltd., was arranged by banks including Morgan Stanley, Goldman Sachs Group Inc., Axis Capital, ICICI Securities, JPMorgan Chase & Co., Citigroup Inc. and HDFC Bank Ltd.

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This document is meant for the recipient only for use as intended and not for circulation. This document should not be reproduced or copied or made available to others. The information contained herein is from the public domain or sources believed to be reliable. While reasonable care has been taken to ensure that information given is at the time believed to be fair and correct and opinions based thereupon are reasonable, due to the very nature of research it cannot be warranted or represented that it is accurate or complete and it should not be relied upon as such. Also above note is not a recommendation to Buy or SELL and is only a view based on facts and figures and we will be in no way responsible for any losses incurred by anyone who uses this information to either trade or invests securities mentioned herein.