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Buy The Ramco Cements, target price Rs 1110: Edelweiss

Edelweiss has buy call on The

Ramco Cements

Ltd. with a target price of Rs 1110. The current market price of The Ramco Cements is Rs 1067.85.

Time period given by analyst is Intra Day when The Ramco Cements Ltd. price can reach defined target.
The Ramco Cements Ltd., incorporated in the year 1957, is a Large Cap company (having a market cap of Rs 25188.68 Crore) operating in Cement sector.

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Stock score of Ramco Cements Ltd moved up by 2 in a week on a 10-point scale.

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Stock score of Ramco Cements Ltd is 8 on a scale of 10. View Stock Analysis »

The Ramco Cements Ltd. key Products/Revenue Segments include Cement, Power, Dry Mortar Mix, Scrap, Ready Mix Concrete and Other Operating Revenue for the year ending 31-Mar-2021.

Financials
For the quarter ended 30-09-2021, the company reported a Consolidated Total Income of Rs 1510.33 Crore, up 21.80 % from last quarter Total Income of Rs 1239.99 Crore and up 18.60 % from last year same quarter Total Income of Rs 1273.47 Crore. Company reported net profit after tax of Rs 519.12 Crore in latest quarter.

Investment Rationale
Ramco Cement has formed a triple bottom pattern at levels of 920.

Promoter/FII Holdings
Promoters held 42.52 per cent stake in the company as of 30-Sep-2021, while FIIs owned 8.71 per cent, DIIs 31.68 per cent.

Buy Tata Motors, target price Rs 522: ICICI Direct

ICICI Direct has buy call on Tata Motors with a target price of Rs 522. The current market price of Tata Motors Ltd. is Rs 485.7.

Time period given by analyst is Intra Day when Tata Motors Ltd. price can reach defined target.

Tata Motors Ltd., incorporated in the year 1945, is a Large Cap company (having a market cap of Rs 160603.29 Crore) operating in Auto sector.

Tata Motors Ltd. key Products/Revenue Segments include Motor Vehicles, Spare Parts & Others, Miscellaneous Goods, Other Operating Revenue and Sale of services for the year ending 31-Mar-2021.

Financials
For the quarter ended 30-09-2021, the company reported a Consolidated Total Income of Rs 62245.73 Crore, down -7.08 % from last quarter Total Income of Rs 66988.05 Crore and up 14.92 % from last year same quarter Total Income of Rs 54163.22 Crore. Company reported net profit after tax of Rs -4476.61 Crore in latest quarter.

Investment Rationale
Bullish Pennant continuation pattern offers fresh entry opportunity, MACD in buy mode.

Promoter/FII Holdings
Promoters held 46.41 per cent stake in the company as of 30-Sep-2021, while FIIs owned 13.35 per cent, DIIs 13.3 per cent.

Add Ajanta Pharma, target price Rs 2440: HDFC Securities

HDFC Securities has add call on

Ajanta Pharma

with a target price of Rs 2440. The current market price of Ajanta Pharma Ltd. is Rs 2136.05. Time period given by analyst is one year when Ajanta Pharma Ltd. price can reach defined target. .

Ajanta Pharma Ltd., incorporated in the year 1979, is a Mid Cap company (having a market cap of Rs 18342.12 Crore) operating in Pharmaceuticals sector.

Ajanta Pharma Ltd. key Products/Revenue Segments include Pharmaceutical Products, Export Incentives and Other Operating Revenue for the year ending 31-Mar-2021.

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Stock score of Ajanta Pharma Ltd moved down by 1 in a month on a 10-point scale.

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Stock score of Ajanta Pharma Ltd is 7 on a scale of 10. View Stock Analysis »

Financials
For the quarter ended 30-09-2021, the company has reported a Consolidated Total Income of Rs 914.34 Crore, up 17.13 % from last quarter Total Income of Rs 780.62 Crore and up 26.86 % from last year same quarter Total Income of Rs 720.76 Crore. Company has reported net profit after tax of Rs 195.94 Crore in latest quarter.

Investment Rationale
Ajanta’s Q2 revenue/EBITDA came in 8%/9% ahead of expectations, primarily on account of robust growth in Indian and African businesses. EBITDA margin, at 29.7%, was broadly in line as higher other expenses were offset by savings in staff cost. The company has guided towards higher opex of ~INR2.25bn per quarter vs. the average run-rate of ~INR2bn in preceding quarters, which is likely to offset some benefits on account of operating leverage. However, the growth outlook for the branded generic business, such as the India, Africa (outperformance to continue) and US generics business (new launches led), remains strong. The brokerage expects 15%/16% revenue/EPS CAGRs over FY21-24e. It revises EPS by 4%/-5% for FY22/23 to factor in Q2 beat/ margin moderation and roll forward to Sep’23 EPS to arrive at a TP of INR2,440/sh, based on 23x Sep’23e EPS.

Promoter/FII Holdings
Promoters held 70.34 per cent stake in the company as of 30-Sep-2021, while FIIs owned 8.72 per cent, DIIs 12.07 per cent.

Buy Cipla, target price Rs 1120: Centrum Broking

Centrum Broking has buy call on

Cipla

with a target price of Rs 1120. The current market price of Cipla Ltd. is Rs 897.35. Time period given by analyst is one year when Cipla Ltd. price can reach defined target.

Cipla Ltd., incorporated in the year 1935, is a Large Cap company (having a market cap of Rs 72586.73 Crore) operating in Pharmaceuticals sector.

Cipla Ltd. key Products/Revenue Segments include Pharmaceuticals, Other Operating Revenue, Export Incentives, Royalty Income and Scrap for the year ending 31-Mar-2021.

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Stock score of Cipla Ltd moved down by 2 in a month on a 10-point scale.

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Stock score of Cipla Ltd is 6 on a scale of 10. View Stock Analysis »

Financials
For the quarter ended 30-09-2021, the company reported a Consolidated Total Income of Rs 5580.47 Crore, up .20 % from last quarter Total Income of Rs 5569.28 Crore and up 9.60 % from last year same quarter Total Income of Rs 5091.76 Crore. Company reported net profit after tax of Rs 712.00 Crore in latest quarter.

Investment Rationale
India business could post market-beating growth in FY22 while US business is expected to post faster ramp-up starting 2HFY23, with new launches like aAbraxane, gAdvair and gRevlimed. Considering lower R&D spend, given that major trials have been completed, along with consistent cost optimization, we expect better earnings trajectory. We look forward to (1) opportunities from inhaler – gAdvair filed in May 2020; (2) biosimilar product filings; (3) China market entry, focused on respiratory segment – more of H2FY22 opportunity. The brokerage maintains multiple at 26x average of FY23E & FY24E EPS, marginally changed FY22/FY23E earnings, and introduced FY24E. BUY with a TP of Rs1,120. At CMP of Rs917, the stock trades at 22.8x FY23E EPS of Rs40.1 and 19.4x FY24E EPS of Rs47.2.

Promoter/FII Holdings
Promoters held 36.12 per cent stake in the company as of 30-Sep-2021, while FIIs owned 28.1 per cent, DIIs 17.74 per cent.

Kotak Mahindra AMC gets relief from SAT

New Delhi: The Securities Appellate Tribunal (SAT) has partly stayed a Sebi order, which had directed Kotak Mahindra Asset Management Company to refund a part of the investment management and advisory fees collected by the fund house from the unit holders. In addition, the tribunal has asked the Asset Management Company (AMC) to deposit a sum of Rs 20 lakh within four weeks into an interest bearing account.

Sebi, in August, had asked the AMC to refund a part of the investment management and advisory fees collected from the unit holders of the six Fixed Maturity Plan (FMP) schemes with 15 per cent interest per annum. In addition, the Securities and Exchange Board of India (Sebi) imposed a penalty of Rs 50 lakh on Kotak Mahindra AMC and barred the fund house from launching any new FMP scheme for six months for violating the regulatory norms.

The company had approached SAT against Sebi’s order. “The direction to refund a part of the investment management and advisory fees collected by the appellant (Kotak Mahindra AMC) from the unit holders shall remain stayed,”

SAT said in its order dated October 21. This is subject to the condition that Kotak Mahindra AMC will give an undertaking to Sebi that it would part with the investment management and advisory fees as per the regulator’s order within two months from the date of disposal of the appeal in case the appeal is decided against the firm, it added.

Sebi has to file its reply in three weeks and then Kotak Mahindra AMC will have three weeks time to file a rejoinder. The matter would be listed for admission and for final disposal on January 7, 2022. However, the tribunal did not stay the penalty of Rs 50 lakh and the six-month ban on the entity from launching any new FMP schemes. The case pertains to six FMP schemes that matured in April and May 2019, which held investments in Non-Convertible Debentures (NCDs) issued by Edisons Utility Works Pvt Ltd and Konti Infrapower & Multiventures Pvt Ltd, belonging to the Essel Group, and secured by pledge of equity shares of Zee Entertainment Enterprises Ltd. The regulator had found lapses on the part of Kotak Mahindra AMC in carrying out due diligence and laid back approach adopted by the fund house in risk assessment while taking investment decision vis-a-vis the Zero Coupon Non-Convertible Debentures (ZCNCDs) of Essel Group entities.

In its order, Sebi had said that there was “utter neglect of due diligence, inordinate delay in communicating with the investors, violation of the statutory sanctity of the maturity dates of the FMP schemes, permitting extension of the maturity of the ZCNCDs of the issuers in contravention of extant regulations etc”.

“… there remains no doubt in mind that the noticee (Kotak Mahindra AMC) has acted in gross violation of provisions of the Sebi Act, 1992, MF Regulations, 1996 as well as various circulars issued by Sebi from time to time,” Sebi had said. The order came after Sebi noticed that the investors of certain FMPs launched by the Kotak Mahindra Mutual Fund were not paid their full proceeds based on the declared Net Asset Value (NAV) of the said schemes as on their respective maturity dates. However, a spokesperson of Kotak Mahindra Group had said that all the investors have been fully repaid along with applicable interest in September 2019 and the fund house was committed to protecting investor interest at all times.

Mutual funds remain most attractive tool of investment during pandemic: Survey

Mutual funds remain the most attractive tool of investment during COVID-19 followed by equities as returns are healthy in this asset class, according to a survey by Financial advisory firm Findoc Group.

It said about 72 per cent of the respondents have opted for mutual funds post the first pandemic and almost 63 per cent express happiness about their decision to invest in these funds.

The other most important tools of investments opted by the respondents include equities, the survey said on Thursday.

“The objective of the survey was to understand the preference of the investors and what they expect from their investment.

“The findings clearly state that mutual funds have been the most favoured investment post-equities. We will see an uptrend in this investment behaviour as the returns are great in this asset class,” Findoc Group Managing Director Hemant Sood said.

The survey was conducted among more than 10,000 existing customers of Findoc Group between July 27 and September 4.

Nitin Shahi, executive director of Findoc Financial Services, said algorithmic trading has appeared to be one of the preferred tools among investors who have been trading on a day-to-day basis for more than three years.

CCI clears Groww’s acquisition of Indiabulls Asset Management Company

The Competition Commission of India (

CCI

) on Thursday gave its approval for Nextbillion Technology Pvt Ltd’s acquisition of Indiabulls Asset Management Company and Indiabulls Trustee Company. Nextbillion Technology (Groww Group) is India’s investment tech platform.

The transaction involves a single share purchase agreement executed between the acquirer, Indiabulls Asset Management Company Ltd (IAMCL) and Indiabulls Trustee Company Ltd (ITCL) and the Indiabulls Housing Finance Ltd, as per a combination notice filed with the regulator.

IAMCL and ITCL are wholly-owned subsidiaries of Indiabulls Housing Finance.

Nextbillion will acquire a 100 per cent stake in both the entities and there are no other interconnected transactions, it added.

“Commission approves acquisition of Indiabulls Asset Management Company and Indiabulls Trustee Company by Nextbillion Technology,” said the regulator in a tweet.

This is the first transaction in India under markets regular Sebi’s new “sponsor” eligibility criteria for mutual funds.

Groww in May had said it would acquire Indiabulls Mutual Fund for a total of Rs 175 crore.

Groww becomes the first fintech to join the asset management space, months after markets regulator Sebi permitted digital platforms like fintechs to enter the mutual fund industry. PTI SRS HRS hrs

HDFC Mutual Fund files for 9 exchange traded funds

HDFC MF, the country’s most profitable mutual fund and third largest in terms of assets under management filed for nine exchange traded funds (ETFs) with the regulator.

These schemes for which the fund house filed for approval are HDFC Nifty 100 ETF, Nifty Next 50 ETF, NV20 ETF, Nifty Private Bank ETF, Nifty 100 Low Volatility 30 ETF, Nifty 100 Quality 30 ETF, Nifty 200 Momentum 30 ETF, Nifty Growth Sectors 15 ETF and Nifty IT ETF.

Earlier this year, HDFC MF had launched two other passive funds—an international offering called Developed World Indexes Fund of Funds and Nifty Equal Weight Fifty fund.

Passive funds are low cost funds that replicate the index, while active funds give flexibility to the fund manager to choose the stocks. Fund houses charge a higher fee for active funds, which subsequently increases their margins.

However over the last few years, active managers have found the going tough, with fund managers finding it tough to beat their benchmarks.

As per S&P Indices Versus Active (SPIVA) India Scorecard for the one-year period ending June 2021, 86.2% of Indian Equity Large Cap funds, 57.1% of Indian Equity Mid- /Small-cap and 53.7% of the ELSS funds underperformed their respective benchmarks.

Over longer horizons, the majority of the actively managed funds in India underperformed their respective benchmarks. Over a 5-year period ending in June 2021, 82.7%, 76.2% and 69.6% of the Indian Equity Large-cap, ELSS and Mid/SmallCap funds underperformed their respective benchmarks, while for a 10 year period it reduced to 65.93, 48.57 and 40.3% respectively.

Recently, Sachin Bansal backed Navi Mutual Fund has filed for 10 passive funds which include the likes of Navi Total US Stock Market Fund of Fund, Navi Nifty 100 ESG Index Fund and Navi Nifty Commodities Index Fund.

Invesco India Mutual Fund files papers for blockchain fund

Domestic mutual fund investors could soon get an opportunity to invest in a global product that bets on companies involved in blockchain technology.

Invesco Mutual Fund has filed papers with the Securities and Exchange Board of India to launch a scheme, which will invest in Invesco Elwood Global Blockchain Exchange Traded Fund.

The investment universe of the fund consists of public global companies in developed and emerging markets that invest across the whole blockchain ecosystem.

Blockchain is a network that allows companies and people to maintain and transfer information instantly. While blockchain is widely associated with cryptocurrencies like Bitcoins, it is not the same as a crypto asset. It is the technology that enables the existence of cryptocurrency. The technology is used in areas such as cryptocurrency mining hardware, technology operations, financial services and payment systems among others.

Invesco Elwood Global Blockchain ETF has returned 82% over the last year. The underlying fund has an expense ratio of 65 bps.

Fund managers said companies in the space could generate high returns in the coming years.

( Originally published on Sep 07, 2021 )

India Inc may rush to bond street amid signs cost of funds to rise

Companies are rushing to raise bond funds after the Reserve Bank of India (RBI) took steps to cut easy money in its bi-monthly policy last week, resulting in an uptick in rates.

Companies including Indian Railway Finance Corporation, State Bank of India (IRFC), Punjab National Bank and IndusInd Bank are likely to raise about Rs 15,000 crore in one or two weeks, market sources told ET.

Indian Railway Finance is aiming to raise about Rs 5,000 crore. It is already in talks with the Employees’ Provident Fund Organisation (EPFO) and is also set to hold discussions with potential investors this week.

India Inc may rush to bond streetET Bureau

These borrowers did not reply to ET’s queries. EPFO could not be contacted immediately for comment.

“The company always seeks to rationalise its fund costs, which may rise in coming days,” said a senior executive involved in the matter.

State Bank of India is set to launch its Additional Tier 1 bond sales this week, aiming to raise up to Rs 6,000 crore.

“Changing rate sentiment will drive borrowers to raise money, particularly when the economy is reopening,” said Mahendra Jajoo, chief investment officer – fixed income, at Mirae Asset Investment Manager (India).

It is natural for companies rushing to garner funds before they turn costlier, he said. “Bond Street should witness heightened activity in the coming days.”

The RBI discontinued the Government Securities Acquisition Programme in the last credit policy. It is billed as a step towards liquidity normalisation.

The central bank also proposed to conduct the 14-day long-term variable rate reverse repo (VRRR) auctions on a fortnightly basis for a total estimated amount of Rs 25 lakh crore by December 3. This will suck the excess money out of the banking system that has a surplus of Rs 7.83 lakh crore now versus Rs 8.33 lakh crore at the beginning of the month.

“Market is now fairly convinced about RBI’s objective, which in turn is already reflecting in some of the money market rates and benchmark bond yields,” said Ajay Manglunia, managing director – head of institutional fixed income, at JM Financial. “Borrowers are engaging with arrangers or directly talking to potential investors to raise debt via bonds before the rates start moving one-way northward,” he said.

The benchmark bond yield rose as much as 17 basis points in the past three weeks, raising overall funding costs.

At a 14-day VRRR auction last Friday, the cut-off rate, above which none can bid, yielded almost 4%, on par with the repo at which banks borrow money from the RBI. It was 3.60% in the previous fortnight. Before that on September 28, the 7-day VRRR cut-off yield came at 3.99%, twisting interest rate sentiment compared with 3.38% the preceding fortnight.

In the past one week, corporate bond sales totalled just about Rs 1,000 crore, much less than usual volumes. Investors chose to stay off the bond street ahead of the RBI’s monetary policy that was widely anticipated to spell out a stance on liquidity.