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DLF to cut debt by Rs 2,800 cr by March next yr: Crisil

Written By Unknown on Kamis, 09 April 2015 | 23.06

The rating agency removed its 'negative watch' from DLF's bank facilities and debt instruments, following the Securities Appellate Tribunal (SAT) order last month quashing the 3 year market ban imposed on DLF by markets regulator Sebi.

Realty major  DLF will reduce its net debt to about Rs 17,500 crore by March 2016, from Rs 20,300 crore at the end of 2014, as company plans to raise funds through various routes to cut borrowings, rating agency Crisil has said.

The rating agency removed its 'negative watch' from DLF's bank facilities and debt instruments, following the Securities Appellate Tribunal (SAT) order last month quashing the 3 year market ban imposed on DLF by markets regulator Sebi. Crisil had placed its DLF ratings on "watch with negative implications" in October 2014 following the Sebi order.

However, the rating outlook on the long term facilities remains 'Negative'," Crisil said in a note filed by DLF to the stock exchanges. The 'negative' outlook is because of high debt level, weak operating cash flow and residual uncertainty over regulatory issues, the rating agency added. Crisil, however, said that SAT's favourable order would enable DLF access capital markets and would support its financial flexibility.

"DLF plans to raise over Rs 2,500 crore through fresh issue of equity shares and real estate investment trusts (REITs) over the medium term," Crisil said. The agency believes that "DLF will reduce its debt (net of liquidity) to around Rs 175 billion as on March 31, 2016 from Rs 203 billion as on December 31, 2014". DLF had a net debt of Rs 20,336 crore at the end of third quarter of 2014-15 fiscal.

Crisil said it would continue to monitor progress of DLF's debt reduction plan, improvement in operating cash flows and outcome of regulatory issues. DLF is the country's largest real estate firm with a land bank of about 300 million sq ft, of which about 50 million sq ft is under construction. The company has a rental income of over Rs 2,000 crore annually.

DLF stock price

On April 09, 2015, DLF closed at Rs 159.35, down Rs 2.7, or 1.67 percent. The 52-week high of the share was Rs 242.80 and the 52-week low was Rs 100.00.


The company's trailing 12-month (TTM) EPS was at Rs 4.83 per share as per the quarter ended December 2014. The stock's price-to-earnings (P/E) ratio was 32.99. The latest book value of the company is Rs 93.40 per share. At current value, the price-to-book value of the company is 1.71.


23.06 | 0 komentar | Read More

US jobless claims data point to strengthening labour market

The number of Americans filing new claims for jobless benefits rose less than expected last week and the four-week moving average of claims hit its lowest level since 2000, suggesting an abrupt slowdown in job growth in March was likely a fluke.

Initial claims for state unemployment benefits increased 14,000 to a seasonally adjusted 281,000 for the week ended April 4, the Labor Department said on Thursday. It was the fifth straight week that claims remained below 300,000, a threshold that is associated with a strengthening labour market.

"The claims data provide no confirmation of the March employment slowdown," said John Ryding, chief economist at RDQ Economics in New York.

US Treasury debt yields rose on the data and also as Greece's 450 million euro loan payment to the International Monetary Fund reduced safety bids for government debt. US stocks edged up at the open while the dollar rose against a basket of currencies.

Job growth slowed sharply in March, with nonfarm payrolls increasing by only 126,000, ending a 12-month stretch of employment gains above 200,000. But with the weakness mostly concentrated in the weather-sensitive leisure and construction sectors, economists downplayed the slowdown.

Last week's tepid employment report joined weak consumer and business spending, industrial production and housing starts data in suggesting the economy grew at a sub-1 percent annual rate in the first quarter.

Activity has been hit by a harsh winter, which is estimated to have chopped as much as seven-tenths of a percentage point from first-quarter growth. A now-settled labour dispute at normally busy ports on the West Coast, softer global demand and a stronger dollar also have weighed on the economy.

Economists had forecast claims rising to 285,000 last week.

A Labor Department analyst said there was nothing unusual in the state-level data. Claims tend to be volatile around Easter because of the shifting nature of the holidays.

The four-week moving average of claims, considered a better measure of labour market trends as it irons out week-to-week volatility, fell 3,000 to 282,250 last week, the lowest level since June 2000.

"If claims remain this low, and we think they might even head lower in the coming weeks, it will be hard to claim there is persistent weakness in the labour market," said Guy Berger, an economist at RBS in Stamford Connecticut.

The Federal Reserve is watching the jobs market as it contemplates raising interest rates this year.

The claims report also showed the number of people still receiving benefits after an initial week of aid fell 23,000 to 2.30 million in the week ended March 28. That was the lowest level since December 2000.

The labour market strength was underscored by a report on Tuesday showing job openings surging to a 14-year high in February and less competition for jobs among the unemployed.

A separate report on Thursday from the Commerce Department showed wholesale inventories rose in February as sales remained weak, suggesting wholesalers might have little incentive to aggressively restock warehouses in coming months.

Stocks at wholesalers gained 0.3 percent after advancing 0.4 percent in January. Sales fell 0.2 percent in February after declining 3.6 percent the prior month.

At February's sales pace it would take wholesalers 1.29 months to clear shelves, unchanged from January.


23.06 | 0 komentar | Read More

Bank of England holds firm ahead of tight UK election

The UK's benchmark interest rate stayed at the record low of 0.5 percent, where it has stayed since March 2009.

The Bank of England kept monetary policy unchanged on Thursday, as investors focused their attention on next month's too-close-to-call general election.

The UK's benchmark interest rate stayed at the record low of 0.5 percent, where it has stayed since March 2009. The central bank also held the size of its bond purchases under the quantitative easing program at £375 billion ($554 billion).

 This month's decision came ahead of a general election in May that is expected to be the closest-fought in generation. Forecasts suggest the Conservatives will emerge as the party with the largest number of seats after the election, but without an overall majority. This would potentially result in another coalition government, like the current Conservative-Liberal Democrat one.

Although the central bank has acted independently of the government since 1997, Societe Generale's Kit Juckes said a policy change this close the election was "unthinkable."

Instead, the bank is seen holding rates until inflation starts to recover, led by wage growth. The country is still in the grip of disinflation (falling inflation), with the consumer price index coming in unchanged in the year to February 2015, down from 0.3 percent in January—and well below the central bank's target of 2 percent.


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Sebi eases foreign investment rules in govt bonds

The Securities and Exchange Board of India, in an email sent late on Wednesday to custodian banks of foreign investors, said the facility to buy and sell government bonds the same day would be applicable on the entire USD 30 billion ceiling on government debt purchases by foreign investors.

India's market regulator has permitted foreign investors to reinvest in government bonds the same day, giving them the option to churn their portfolio, according to four traders with direct knowledge of the matter and an email of the new rules.

The Securities and Exchange Board of India, in an email sent late on Wednesday to custodian banks of foreign investors, said the facility to buy and sell government bonds the same day would be applicable on the entire USD 30 billion ceiling on government debt purchases by foreign investors.

Currently, the entire government bond limit for foreign investors is almost fully exhausted.

Reuters has access to a copy of the email.

"Upon sale or redemption or maturity of government securities the FPIs (foreign portfolio investors) shall be permitted to buy government securities on the same day," SEBI said in the email.

While currently foreign investors get a 5-day window to reinvest government bonds if they have purchased the limit by paying a fee at the auction, the current rules will be applicable when the limits are freely available, traders said.

The limits were auctioned since September when the quota was 90 percent used up.


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IMF's Lagarde sees 'new reality' of mediocre growth

Mediocre economic growth could become the "new reality," leaving millions stuck without jobs and increasing the risks to global financial stability, the head of the International Monetary Fund warned on Thursday.

Christine Lagarde, the managing director of the IMF, first warned in October the global economy could be stuck on a "new mediocre" growth path with high debt and unemployment, unless policymakers act.

"Today, we must prevent that new mediocre from becoming the 'new reality,'" Lagarde said, according to prepared remarks at the Washington-based Atlantic Council.

Speaking ahead of the release of the IMF's economic forecasts next week, Lagarde said global growth this year is similar to last year, while it is slightly better for advanced economies and slightly worse for emerging markets.

In its last forecasts in January, the IMF said the global economy grew 3.3 percent last year, advanced economies expanded by 1.8 percent and emerging markets grew 4.4 percent.

"It is not that overall growth is bad," Lagarde said. "It is rather that, given the lingering impact of the Great Recession on people ... growth is just not good enough."

While loose monetary policies are still needed, especially in the euro zone and Japan, very low interest rates are also breeding financial instability as investors tolerate higher risks and may overprice assets.

Lagarde also warned about the potential negative impact of the sharp appreciation of the U.S. dollar over the past six months, as the Federal Reserve prepares to raise rates while other central banks stay put.

She said some firms in emerging markets are particularly vulnerable as they deal with a higher dollar, lower commodity prices and higher borrowing costs.

As in previous speeches, Lagarde called for policymakers to pursue structural reforms, including infrastructure investment and trade reform.

"Frankly, in too many countries, these reforms have been lagging," she said.


23.06 | 0 komentar | Read More

Zuari to launch open offer on Apr 20 to raise stake in MCFL

The open offer is being launched after an approval from fair trade watchdog Competition Commission for acquiring up to 36.56 percent stake in Mangalore Chemicals and Fertilisers Ltd (MCFL) for Rs 398.2 crore.

Taking forward the takeover battle for Vijay Mallya-led UB Group's fertiliser firm MCFL, Zuari Group will launch an open offer on April 20 to acquire additional 36.56 percent stake in the company, for which it is competing with rival Deepak Fertilisers.

The open offer is being launched after an approval from fair trade watchdog Competition Commission for acquiring up to 36.56 percent stake in Mangalore Chemicals and Fertilisers Ltd (MCFL) for Rs 398.2 crore. Zuari, led by Kolkata-based industrialist Saroj Poddar, had announced a voluntary open offer in December last year as well for acquiring 25.9 per cent stake in MCFL.

The firm has now increased the offer size to acquire up to 36.56 per cent stake. In a regulatory filing today, Zuari group firm  Zuari Agro Chemicals said the open offer will begin on April 20 and close on May 26. The two-way battle is going on between Zuari Group and Pune-based Deepak Fertilisers for a long time for taking over MCFL.

At the end of December 2014, Zuari held 16.47 per cent stake in MCFL while Deepak Fertilisers had 29.05 per cent. Crisis-hit UB Group, which had earlier supported Zuari offer, owns 21 per cent stake in MCFL.

Zuari Agro Chem stock price

On April 09, 2015, Zuari Agro Chemicals closed at Rs 249.40, down Rs 6.6, or 2.58 percent. The 52-week high of the share was Rs 309.50 and the 52-week low was Rs 124.05.


The company's trailing 12-month (TTM) EPS was at Rs 35.28 per share as per the quarter ended December 2014. The stock's price-to-earnings (P/E) ratio was 7.07. The latest book value of the company is Rs 191.56 per share. At current value, the price-to-book value of the company is 1.30.


23.06 | 0 komentar | Read More

Satyam Scam: Downfall of Ramalinga Raju

Here's a complete recap of what really happened at Satyam, which led to the downfall of one of India Inc's poster boy Ramalinga Raju and nine others.

Here's a complete recap of what really happened at Satyam, which led to the downfall of one of India Inc's poster boy Ramalinga Raju and nine others.


23.06 | 0 komentar | Read More

Dispose off plea on cap of fixed power charge: HC to Govt

The bench also extended till April 17, the date by which the JV has to submit a bank guarantee of Rs 544.97 crore as well as a payment of about Rs 108 crore under the Coal Mines Development and Production (CMDP) Agreement.

Delhi High Court today asked the government to consider as a representation a power company's plea seeking clarification on whether it intended to cap the fixed charge component of the rate of electricity generated from plants which won coal blocks in the recent auction.

The proposed ceiling would bar thermal power plants, which have succesfully bid for coal blocks, from increasing tariff on the electricity generated by them. A bench of justices B D Ahmed and Sanjeev Sachdeva asked the Power Ministry to consider the petition of Mandakini Exploration and Mining Ltd, joint venture (JV) of Jindal India Thermal Power Ltd (JITPL) and Monnet Power Company Ltd, as a representation and dispose it of by April 15.

The bench also extended till April 17, the date by which the JV has to submit a bank guarantee of Rs 544.97 crore as well as a payment of about Rs 108 crore under the Coal Mines Development and Production (CMDP) Agreement.

With these directions, the court disposed of the plea of the company in which JITPL holds 73 percent stake and Monnet the rest. The JV had successfully bid for and was allotted Mandakini coal block in Odisha. In its plea, the company said it had come to know from reports that the government proposed to cap the fixed charge component of rate of electricity generated by companies which successfully bid for the mines earmarked for the power sector.

Such a move, it said, "will amount to ex post facto change in bidding conditions of coal mines for power sector" and would render the entire project "unviable". The JV company contended that "bidding for a mine was based on the assumption that costs would be factored in the fixed charge".


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Xiaomi sells 2.11 mn phones in 12 hrs; sets Guinness record

The half-day bonanza, which brought in 2.08 billion yuan (USD 335 million) from sales of handsets and other accessories broke the previous record held by Alibaba's Tmall, which sold 1.89 million handsets on Singles' Day in November during a 24-hour event.

China's smartphone giant Xiaomi today said it has set a new Guinness World Record for mobile phone sales by selling 2.11 million handsets in a 12-hour flash sale held to celebrate its fifth anniversary.

The half-day bonanza, which brought in 2.08 billion yuan (USD 335 million) from sales of handsets and other accessories broke the previous record held by Alibaba's Tmall, which sold 1.89 million handsets on Singles' Day in November during a 24-hour event.

"Good news: Xiaomi just set a new Guinness World Record, selling 2.11 million mobile phones in 24 hours," chief executive Lei Jun posted on Sina Weibo - the Chinese equivalent of Twitter - shortly after the event.

"This is beyond my imagination," the Hong Kong-based South China Morning Post quoted Lei as telling reporters at the company's headquarters here. The new record has been certified by the official Guinness World Records and examined by auditor PricewaterhouseCoopers, he said. Xiaomi easily broke their record from the same event last year, which saw them selling 1.3 million smartphones.

Mobile phones and other accessories sold during the 12- hour event were discounted from Xiaomi's already famously low prices. Lei said the company was focussed on making smartphones, televisions, routers and other products sold on its website. In 2014, Xiaomi sold 61 million smartphones and had revenue of 74.3 billion yuan, becoming the world's number three smartphone player and China's top smartphone brand, overtaking Apple and Samsung.

The company was valued at USD 45 billion in a December funding round that drew investors ranging from Singapore's sovereign wealth fund to a private capital firm backed by Alibaba Group co-founder Jack Ma.


23.06 | 0 komentar | Read More

Warburg sells 27% stake in Metropolis Healthcare

Commenting on the development, Metropolis Healthcare Ltd MD & CEO Ameera Shah said, "Warburg Pincus invested in the company in 2010 and after nearly five years of support, sold its shares for handsome returns. "The shares have been acquired by me and my family. We are very excited about the new phase of growth."

Warburg Pincus has sold its 27 percent stake in Metropolis Healthcare Ltd to the latter's promoter, the Shah family, for an undisclosed amount.

Warburg Pincus had picked up a stake in Metropolis Healthcare, which is India's leading pathology chain with presence in the UAE, Sri Lanka, South Africa, Kenya, Mauritius and Ghana, in 2010. After nearly five years of support, it has decided to sell its stake to the promoters, a company statement said today.

Commenting on the development, Metropolis Healthcare Ltd MD & CEO Ameera Shah said, "Warburg Pincus invested in the company in 2010 and after nearly five years of support, sold its shares for handsome returns. "The shares have been acquired by me and my family. We are very excited about the new phase of growth.

The company is now supported by eminent independent directors and I am backed by other marquee investors and eminent industrialists". "The relationship with Warburg Pincus was mutually beneficial for the investor and the company. With the new shareholding structure, Metropolis will take an even more aggressive path," Shah said in a statement here.

Warburg Pincus India Private Limited's Managing Director Niten Malhan said, "The decision to invest in Metropolis in 2010 was based on our thesis that demand for and growth trends in medical diagnostics will continue and that Metropolis is well positioned to benefit. "We are pleased to have partnered Metropolis during its critical growth phase. Metropolis, through its innovative vision and focused business acumen has now metamorphosed into one of India's leading pathology specialists and has created immense value for all its partners," he said in the statement.


23.06 | 0 komentar | Read More

Retired? Four monthly income investment options for you

Written By Unknown on Kamis, 02 April 2015 | 23.06

Factors

Nationalized Bank Fixed Deposits.

Varishtha Pension Bima Yojana

Postal MIS

Pension Plans – Jeevan Akshay VI

 

What is it?

The investor can invest money in a fixed deposit in a bank for a certain duration and earn interest on the same.

LIC has launched this pension plan. Its aim is to provide a regular income to the senior citizens of the country.

Post Office Monthly Income Scheme is a post office investment scheme that gives an assured monthly income.

Jeevan Akshay VI is a pension plan  wherein the investor purchases the plan by paying a lump sum amount and gets annuities periodically. It is an annuity plan. 

Key Features

Fixed Deposits (FDs) allows an investor to invest a lump sum amount and earn income at a higher interest rate than Savings Accounts.

One can invest in FDs from a minimum of 7 days to a maximum of 10 years. 

Interest is calculated on a compounded basis.

At the end of the FD tenure, the principal and interest is returned to the investor'

The individual has to be 60 years or more and for a monthly pension the minimum purchase price is Rs. 66,665 and the maximum is Rs. 6,66,665.

The policy can be surrendered after 15 years for a full refund and at 98% in case it is surrendered for any emergency purpose before 15 years have passed.

POMIS is a risk free investment scheme with a minimum investment of Rs. 1500. The maximum amount is Rs. 4,50,000 for individual accounts and Rs. 9,00,000 for joint accounts.

An interest of 8.5% p.a. is paid

The maturity period is 6 years and a bonus of 5% is given if you remain invested in it for 6 years.

LIC's Jeevan Akshay VI is a single premium pension plan wherein on payment of the sum, a regular income will be paid to the investor from the next time interval.

A person between the ages of 30 and 85 years can purchase this plan from LIC with a minimum amount of Rs. 1,50,000. There is no upper limit. He/She will get the periodic annuity (monthly, quarterly, semi-annually or yearly) depending on the type of plan purchased.

There are 6 plan options to choose from and the policy termination, refund of purchase price and nomination features depend on the plan chosen.

Payment Mode

The monthly interest can be credited to the savings account. It can be given quarterly, semi-annually or annually as well.

Payment is done through ECS/NEFT.

The payment can be taken from the post office or it will be transferred electronically to your bank account.

There are various modes of payment for getting the annuity.

Returns

Interest rate varies depending on duration, amount and Bank.

Interest rate is around 9%-9.38%

Interest rate is 8.5% per year.

The annuity payable for life increases at a simple rate of 3% p.a. The insured person is also eligible for bonuses declared after 6 years of the policy.

Risk

It is a less risky product and the investment up to Rs. 1,00,000 is guaranteed by the Deposit Insurance and Credit Guarantee Corporation (DICGC).

It is not a risky product as the Government backs it.

There is no risk involved.

It is a very low risk product.

Benefits

FDs with a tenure of 5 years or more qualify for deduction under Section 80C of Income Tax Act.

Senior citizens get an additional 0.25%-0.5% on the regular interest rate.

A regular stream of income is provided to the senior citizen.

If the policy owner dies, the entire purchase amount is refunded to the nominee.

Premium paid for this plan for senior citizens, is exempt from service tax

It is a secure regular stream of income.

The account can be transferred easily from 1 post office to another.

If the plan purchase price is Rs. 2,50,000 or more, higher incentives are available.

Online purchase also gives a rebate by increasing the annuity rate.

It is a hassle free investment option for senior citizens  falling in the 10% tax slab.

What is not so good about it

Tax saving FD are illiquid

Rate of Interest can change and inflation can erode the value of the interest earnings.

The maximum limit is not high enough. There are no tax breaks on it. It is illiquid in nature.

There is a penalty if you take the money out before the completion of 1 year of the investment.

The investor cannot take a loan against it.  There is no option to surrender the policy. Inflation is not considered in the plan returns.

Taxation

The interest earned on the fixed deposit is taxable.

If the interest income on a fixed deposit exceeds Rs.10000 in a year, tax will be deducted at source along with education cess.

Investments in the pension plan do not qualify for deductions.

Interest earned in taxable at the tax slab that the investor falls under. There is a service tax of 3.09% on the premium amount.

It does not qualify under Section 80C.

Income received is taxable as per the income slab that the person falls under.

Premium paid for purchase of plan is exempt from tax.

1/3rd of the maturity value received is exempt from tax

Income received is taxable as per the income tax slab the person falls under

Comments

It is good for investors falling in the 10% income tax slab and those who do not mind the lock-in period.

Investors in the higher income tax slabs will not find the returns attractive.

It is a good investment option for senior citizens looking for a regular stream of income with no risk involved. Some money can be invested so that investments are diversified.

There are many insurance companies with pension plans. The investor should compare different options and buy the one that suits his requirements. The returns do not match the inflation rate, which means you can lose money here.


23.06 | 0 komentar | Read More

2015 Volvo XC90 review

Well there's this luxury carmaker from Sweden that is often overlooked in the Indian automotive landscape, partly because of the large shadow cast by the success of its bus division, and partly because of its small distribution and service network. But Volvo has always had some excellent products that have introduced the global automotive industry to some significant technologies. The new XC90 is one such example - which the company claims is its current production magnum opus. So we descended upon the twisties of the Montserrat mountain... Read More


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Buy Bank of India; target of Rs 285: Prabhudas Lilladher

Brokerage house Prabhudas Lilladher is bullish on Bank of India and has recommended buy rating on the stock with a target price of Rs 285 in its research report dated April 01, 2015.

Prabhudas Lilladher's report on Bank of India  

"BOI's loan growth remains muted at ~7% during FY15 YTD (8.6% during 9MFY15) as bank remains cautious on lending to large corporates. BOI maintains a cautious stance on lending to large corporates and is focusing more on retail and SME segment. Following 15% wage hike settlement reached in tenth bi‐partite settlement, BOI is likely to provide for the gap in wage provisioning (BOI has provided for 13% wage hike vs 15% settlement) during 4QFY15 and the amount would be close to ~Rs1bn. However the bank still continues to rely on existing mortality tables and the shift to new mortality table, if required, will impact earnings by ~Rs6bn – 13% of FY16E PBT."

"BOI has restructured Rs39.8bn worth of loans during 9MFY15 and is looking to restructure another Rs25‐30bn (infra, metals, textiles) during 4QFY15. Fresh slippages is also likely to remain elevated at Rs25bn (Rs101bn in 9MFY15) however will likely improve on sequential basis. We believe that bank will miss its guidance of <4% GNPA by end of FY15. BOI has raised capital worth Rs6.42bn from LIC and New India assurance however the increase in coretier I from this capital infusion stands at tiny 18bp. The core‐Tier1 now stands at 6.86% while overall Tier‐I including AT‐1 stands at 7.95%. We believe that FY16 will be a difficult year for PSUs as earnings remain volatile. Earnings normalization will only occur from FY17 as opex moderates while loan growth recovers from FY17. We maintain BUY rating over one year perspective", says Prabhudas Lilladher's research report.

For all recommendations,  click here  

Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

To read the full report click here


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Diageo to buy Mallya's remaining 50% stake in African firm

Diageo has entered into an agreement to acquire the remaining 50 per cent share of United National Breweries (UNB) interest in the company, thereby making it a wholly owned subsidiary, the company said in a statement.

Diageo, the world's largest spirits maker today took full control of South African beer maker United National Breweries by acquiring the additional 50 percent stake in the company from Vijay Mallya-controlled Pestello Investments for an initial payment of USD 22 million.

Diageo has entered into an agreement to acquire the remaining 50 percent share of United National Breweries (UNB) interest in the company, thereby making it a wholly owned subsidiary, the company said in a statement.

"Diageo will acquire this further interest from Pestello Investments Inc for an initial payment of USD 22 million and a potential earn-out payment of up to USD 14 million," the statement added.

It further said that the transaction is 'conditional on consent from the South African competition authority', and it is expected to complete within the current fiscal.

Diageo, which is also a major producer of beer and wine and owner of popular brands such as Johnnie Walker, Guinness and Smirnoff had in January 2013 acquired 50 percent interest in UNB's traditional sorghum beer business in South Africa reportedly at USD 36 million.

In 1996 Mallya's UB Group had acquired 30 percent stake in UNB and later increased it to 100 percent.

In 2000, UNB had acquired beer business from Traditional Beer Investments (TBI), a subsidiary of South African Breweries.

According to Diageo: "Once completed, this transaction will give Diageo control of the leading traditional sorghum beer business in South Africa, including the ability to make investment decisions to support the continued growth of United National Breweries brands in the sorghum beer category." 


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28 Soft Skills To Working Smart

Rules for mastering soft skill is not black and white –  Unlike hard skills, like math, where the rule for doing it perfectly is always the same, how effective you are at a soft skill changes depends on your emotional state, external circumstance, and the type of people you interact with.

This skill is portable and valuable to any job/career – Because soft skills are about your inner strength and interpersonal effectiveness, as long as you work with people, these skills are valuable to your career.

Mastering this skill is an ongoing journey – you can reach a level of competency in it but you can always encounter new situations or people that will test your soft skills and push you to learn more.

There are 28 soft skills that every professional should develop – 10 Self-Management skills and 18 People Skills.  No matter what type of work you do, you will find value, advancement, and fulfillment in developing these 28 soft skills in your career.

Self-Management skills address how you perceive yourself and others, manage your emotions, and react to adverse situations.   Only when you build an inner excellence can you have a strong mental and emotional foundation to succeed in your career.

Growth mindset – Looking at any situation, especially difficult situations, as an opportunity for you to learn, grow, and change for the better.  Focusing your attention on improving yourself instead of changing others or blaming anyone.

Self-awareness – Knowing and understanding what drives, angers, motivates, embarrasses, frustrates, and inspires you.  Being able to observe yourself objectively in a difficult situation and understand how your perceptions of yourself, others, and the situation are driving your actions.

Emotion regulation – Being able to manage your emotions, especially negative ones, at work (e.g. anger, frustration, embarrassment) so you can think clearly and objectively, and act accordingly.

Self-confidence - Believing in yourself and your ability to accomplish anything.  Knowing that all you need is within you now.  "Those who believe in themselves have access to unlimited power" – wisdom from Kung Fu Panda

Stress management- Being able to stay healthy, calm, and balanced in any challenging situations.  Knowing how to reduce your stress level will increase your productivity, prepare you for new challenges and supports your physical and emotional health, all of which you need for a fulfilling, successful career.

Resilience – Being able to bounce back after a disappointment or set back, big or small, and continue to move onward and upward.

Skills to forgive and forget- Being able to forgive yourself for making a mistake, forgive others that wronged you, and move on without "mental or emotional baggage."  Freeing your mind from the past so you can focus 100% of your mental energy on your near and long-term career goals.

Persistence and perseverance – Being able to maintain the same energy and dedication in your effort to learn, do, and achieve in your career despite difficulties, failures, and oppositions.

Patience – Being able to step back in a seemingly rushed or crisis situation, so you can think clearly and take action that fulfills your long term goals.

Perceptiveness – Giving attention and understanding to the unspoken cues and underlying nuance of other people's communication and actions.  Often times, we are too busy thinking about ourselves and what we are saying, we leave little room to watch and understand others' action and intentions.   If you misinterpret other's intention, you can easily encounter difficulties dealing with people and not even know why.

Soft Skills List – People Skills

People Skills address how to best interact and work with others so you can build meaningful work relationships, influence others perception of you and your work, and motivate their actions.   It is further split into two sections – Conventional and Tribal.

Conventional – List of people skills you can find in most job descriptions and you will be assessed on some or all of these in your performance reviews depending on your level.

Communication skills – Being able to actively listen to others and articulate your ideas in writing and verbally to any audience in a way where you are heard and you achieve the goals you intended with that communication.

Teamwork skills – Being able to work effectively with anyone with different skill sets, personalities, work styles, or motivation level to achieve a better team result.

Interpersonal relationship skills – Effectively at building trust, finding common ground, having empathy, and ultimately building good relationships with people at work and in your network.  This skill is closely related to Communication Skills.  As Maya Angelou said "I have learned people will forget what you said. People will forget what you did, but people will never forget how you make them feel."

Presentation skills – Effectively presenting your work results and ideas formally to an audience that captivates their attention, engage their input, and motivates them to act in accordance to your desired outcome.  While presentation skills is a form of communication skills, I decided to list it separately given the ability to present plays a huge role in any business profession especially as you move up in your career.

Meeting management skills – Leading a meeting to efficiently and effectively reach productive results.  At least 50% of meetings today are a waste of time.

Facilitating skills – Being able to coordinate and solicit well represented opinions and feedback from a group with diverse perspectives to reach a common, best solution.

Selling skills - Building buy-in to an idea, a decision, an action, a product, or a service.  This is not just for people in sales.

Management skills – Creating and motivating a high performing team with people of varied skills, personalities, motivations, and work styles.

Leadership skills – Defining and communicating vision and ideas that inspires others to follow with commitment and dedication.

Mentoring / coaching skills - Providing constructive wisdom, guidance, and/or feedback that can help others further their career development.

"Tribal" –  List of people skills that you will not find in any job descriptions.  They are also essential to your career success.   I call it tribal because they are more "insider knowledge" that you gain from work experience or from mentors.  Some people can go through their entire career and not be aware of some of these skills.

Managing upwards – Proactively managing your relationship with your boss, his expectations of your work, and his perception of your performance.  Whether you are challenged, given opportunities, or recognized at work heavily depends on your ability to communicate, manage expectations, and build a good relationship with your boss.

Self-promotion skills – Proactively and subtly promoting your skills and work results to people of power or influence in your organization and network.  It is not enough that your boss knows you do great work.  You need to subtly build your reputation with all key people that can influence your performance review.  This is because hard work alone does not guarantee success.

Skills in dealing with difficult personalities – Being able to still achieve the work result needed while working with someone whom you find difficult.

Skills in dealing with difficult/unexpected situations – Being able to stay calm and still are effective when faced with an unexpected or difficult situation.  This includes being able to think on your feet and articulate thoughts in an organized manner even when you are not prepared for the discussion or situation you are in.

Savvy in handling office politics – Being able to understand and proactively deal with the unspoken nuances of office and people dynamics so you can protect yourself from unfairness as well as further your career.  Office politics is a fact of life.  If you don't choose to play, it can play you.

Influence / persuasion skills - Being able to influence perspectives or decision making but still have the people you influence think they made up their own minds.

Negotiation skills - Being able to understand the other side's motivations and leverage and reach a win-win resolution that you find favorably, satisfies both sides, and maintains relationships for future interactions.

Networking skills - Being able to be interesting and interested in business conversations that motivates people to want to be in your network.  The bigger and stronger the network you have, the more easily you can get things done (e.g., find a job, get advice, find business partners, find customers, etc…)

I know this is a daunting list.  Don't worry if you don't have all of them.  Most of us don't.   The important thing is to understand why these soft skills are important to your career success and then ask yourself – what soft skills do you already possess and which ones do you want to develop next?

By Lei Han who is a Stanford engineer, Wharton MBA and has 15+ years of business experience.


23.06 | 0 komentar | Read More

10 Unusual Ways to Improve Employee Productivity

Employee happiness is not a myth; it can and does exist. There are number of quick, easy and low-cost ways companies can start boosting employee happiness and productivity.

With employee productivity so crucial to business growth, it should be encouraging to companies to learn that employee happiness is so closely connected to their performance, because employee happiness is not a myth; it can and does exist.

The University of Warwick in the UK recently published research highlighting that happiness can increase employee productivity by up to 12%.
Separate research by the New Economics Foundation suggested that in some creative industries, happiness can improve productivity by up to 50%.
Furthermore, academic research in the US found that when employees were in a good mood they performed their least favorite tasks better than when they didn't feel as happy.

What was interesting about the original Warwick University research was how quickly and easily employees' moods were boosted by eating chocolate and watching comedy for ten minutes. While this is an affordable and active way to boost somebody's mood in the short-term, it is perhaps not the most cost- or time-efficient approach to ensuring employee happiness, and thus productivity, in the long-term.

For many years academics have been conducting surveys and research to establish proven ways that improve happiness in the workplace. The findings – many of which are summarised below – include a number of quick, easy and low-cost ways companies can start boosting employee happiness and productivity.

1. Get some plants
Research conducted by the NCIB shows that "nature contact" was very effective at reducing stress among employees. Separate research in Norway also showed that working in an environment with plants was very effective at improving staff health by reducing coughs, headaches and skin ailments.

2. Better Use of Space and Better Furniture
When you also look at the offices for some of the most successful – and popular – companies in the world, their offices offer ample space and comfort, not only for work but for also breaks. Not every company has the budget to offer Google style offices, but small changes to the working environment can go a long way. Research in New Zealand has shown that investment in ergonomic furniture and effective use of space could increase productivity by up to 64%.

3. Organized Exercise Breaks
The same research in New Zealand showed that when exercise breaks were encouraged there was a 25% increase in staff productivity and separate research shows that taking four short walks a day can boost a person's mood for as long as 11 hours. Offer "walking breaks" to your employees and make it easy for them to get exercise during their lunch hour.

4. Keep Your Promises
Psychologist Dr. Noelle C Nelson concluded from research for her book "Make More Money by Making Your Employees Happy" that many employees consider a good manager to be someone who keeps their promises and puts employees first. Giving the example of the CEO of aluminium company Alcoa Ltd who made employee safety his "sole priority", this approach not only reduced accidents, but employee productivity dramatically increased.
Employees consider a good manager to be someone who keeps their promises and puts employees first.

5. Make Managers Happy
Professor Cary Cooper of Lancaster University explains that the main cause of unhappiness in employees is line managers. Investing in line manager happiness as a priority and encouraging this to "drip down" is a very logical and effective way to improve staff happiness. When studies have shown that over two thirds of employees feel their manager has an impact on their career it's important to ensure that it's a positive one.

6. LOL
As the original Warwick University research shows, laughter has a quick and direct impact on our mood. Research also shows that regular laughter reduces stress, helps us sleep better and can even boost the body's immune system. If laughing in the workplace isn't appropriate, then organise a work trip to a comedy club or share recommendations for funny movies that employees can watch at home.

7. Let employees go on Facebook
While many companies have a no social media policy, there is some evidence to suggest that those who are allowed to access these websites at work could be happier employees. In a recent interview with Entrepreneur, Richard Branson stated that one of the key reasons Virgin introduced flexible working was to show employees they were trusted and this in turn improved their productivity. This article also argues that some of the world's most successful CEOs are very active on social media, and they use it to promote their company. Why not let your employees do the same?
When studies have shown that over two thirds of employees feel their manager has an impact on their career it's important to ensure that it's a positive one.

8. Start a Book Club
Neurological research has shown that brain functions are significantly boosted after people finish reading a novel and the additional benefits of reading include greater social perception and empathy. These are all excellent reasons to start a book club.

9. Encourage Sharing
When we introduced the Noticeboard feature for our customers on Findmyshift we expected it to be used to share work-related memos. In reality it's used by our customers to share a variety of information about social events, personal announcements and yes, even book club updates! In a recent survey we conducted it was listed as one of our most popular features by staff and managers alike.

10. Let them get on with it
Arguably the most welcome and cost-effective way proven to make your staff happy and more productive is to simply let them get on with their work. This is supported by Harvard Business Review research which showed that what motivated them most was not financial reward or public recognition, but progress.

There is some comfort in knowing that employees are motivated by the same thing managers are and in many ways it confirms the strong link between happiness and productivity; we all like to feel useful. Of course, you don't need to be an expert to understand why happier employees are more productive employees, but perhaps we all need to take a bit of extra time to do what we can to make our employees happy when they come to work and not just when they leave.

By Mark Feldman, SAP Business Innovation


23.06 | 1 komentar | Read More

Should I sell my equity mutual funds and book profits now?

Booking profits in equity mutual funds should depend on your financial goals and performance of individual schemes and not on the basis of overall surge in equity markets.

Image

Suresh KP
Myinvestmentideas.com

Markets are near the peak. As an investor, you might be getting doubt that should I sell my equity mutual funds to book profits? Where is the market heading and how long it would sustain at this level? While it is almost impossible to predict where exactly stock market would be in coming years, if you are investing in equity mutual funds, here are some tips which you can consider before taking a sell decision about your equity mutual funds.

Some of the factors which have driven / driving stock markets to peak levels:

New Government and New policies boosting SENSEX to reach peak: One and half year back, SENSEX was at 19,000 levels, now at 28,500 levels indicating a 50% rise in SENSEX stocks. The SENSEX has been hovering around the similar level of 19,500 all along since 2007. What made the difference is the expectation from the new government and new policies / trust being built after the new Government has been formed in the last 1 year. Though you may not see a rise in SENSEX in a similar manner, SENSEX could move in a positive direction with correction on and off.

Companies are getting fair valuation: In the last 1 year, investors are seeing true valuation of the large cap stocks. However, mid-caps and small-caps are over-valued. In case there is any major correction, mid-cap/small-caps would take a huge beating.

Increase in FII's inflow: In the last 1 year, FII's have pumped net of Rs 82,000 Crores (Source: Moneycontrol.com) in to Indian stock markets which indicates increase in FII's trust in Indian stock markets.

Well, all these are fine but that does not answer our question: Should I sell my equity mutual funds and book profits now?

I have indicated some of the major factors which influenced the stock market to reach at this peak level in the Iast one and half year. If you have invested in equity mutual funds over a period of time through the Systematic Investment Plan, you might have seen good returns for your mutual fund schemes. This growth may continue in future, however, not predictable. Hence, your decision to sell an equity fund may depend on the following factors:

Sell your fund if it is under-performing compared to benchmark: Compare your mutual fund returns with the benchmark. If it has out-performed, you should continue to keep your equity funds. If it is under-performing, you should review and exit appropriately. For example, if you have invested in X mutual fund scheme which gave 12% annualized return in last 5 years and benchmark has given 15% return, you know for sure that your fund has underperformed. Review such funds, book profits and exit.

Sell if you have met your financial goal: Many of us would have been investing in mutual funds keeping our financial goals in view. With this market boom, if you have achieved your financial goal, you can sell your mutual fund, book profits and use for the purpose you have planned. For example, if Mr.Akhil Kumar has been investing in the stock market for the last 15 years to create a retirement corpus. Now he is nearing retirement and his mutual fund portfolio is worth Rs 1 Crore, which was his retirement goal. He should book profits and invest in debt schemes which provides fixed income considering his age factor.

Sell your fund if it does not meet your goal: If you have wrongly invested in a fund by mistake with an advice from an advisor or friend, you should review it carefully and exit appropriately. E.g. if you have bought sector based mutual fund scheme with an aim to have a good secure education for your child, it is incorrect. Sector funds are high risk and can wipe your capital itself.

Concluding remarks: No one can time the market. Investing through SIP in mutual funds for long term can provide good returns. However, you should also know when to exit. Understanding these concepts would help you to plan well.

Readers, what do you think about these ideas? Are you selling your mutual funds considering any other parameters? I would love you hear from you.

The author of this article is founder of Myinvestmentideas.com. He can be reached at suresh@myinvestmentideas.com for any clarifications.


23.06 | 0 komentar | Read More

CARE maintains fundamental grade of 4/5 to PC Jeweller

CARE Ratings has maintained fundamental and valuation grade of 4/5 to PC Jeweller (PCJ), in its report dated March 31, 2015.

CARE Ratings' report on  PC Jeweller (PCJ)

During Q3FY15, the company's consolidated total income increased by 38.1% to Rs.1833.2 crore in Q3FY15 on y-o-y basis, EBITDA and PAT margins stood at similar level (11.7% and 6.0% respectively) as against Q3FY14.

The total revenue has increased mainly buoyed by the festive/marriage season in India & abroad, along with store-wise expansion of the company and higher contribution from export sales. Further, contribution from diamonds continues to be a major strength for the company, with diamond jewellery contributing 35% of total revenue in Q3FY15.

On q-o-q basis, the total income of the company registered a 53.7% growth from Rs.1193 crore in Q2FY15 to Rs.1833 crore in Q3FY15. The profitability margins moderated during the quarter mainly due to decline in the profitability margins from export and also discounts/offers offered by the company typical to the festive season of the year.

CARE believes key catalysts for PCJ would be the volume and realizations growth across newer markets and new format selling (online retailing and e-format selling targeting student & working women). Further, revenue from the diamond jewellery is expected to grow from 25% of the total revenue in FY14 to around ~30-35% in FY15E-FY17E, which will positively impact company's margins. The contribution from wedding jewellery (currently constituting ~80% of total revenues), the niche segment for PCJ, is expected to stay flat.

Valuation
We have valued the equity shares of PCJ at Rs.354 per share. The valuation has been arrived at by using the EV/ EBITDA valuation methodology. The CIV of Rs.354 per share is around 11.41% above the Current Market Price (CMP) of Rs.318 per share; hence we assign a valuation grade of 4/5 to the equity shares of PCJ, indicating that equity shares have 'Moderate Upside Potential.

Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

To read the full report click here


23.06 | 0 komentar | Read More

Buy Glenmark; target of Rs 1186: Prabhudas Lilladher

Brokerage house Prabhudas Lilladher is bullish on Glenmark Pharma and has recommended buy rating on the stock with a target price of Rs 1186 in its research report dated April 01, 2015.

Prabhudas Lilladher's report on  Glenmark Pharma

"Glenmark has seen a steady performance over the last few years and we expect them to be in a favourable position going forward to gain from a large number of approvals in the USA and the US sales is expected to grow at a CAGR of 33% for the next three years. With US accounting for 34% of the existing turnover, GNP we believe GNP is in a sweet spot. With 64% revenues from US, EU and ROW, Glenmark is in a favourable position to gain from (a) strong flow of approvals in US, (b) turnaround in key ROW markets with launch of high‐end drugs and (c) expansion of operating margin in non‐US exports. Besides, we expect value unlocking of NCE/biologics, along with consistent growth of 16‐18% in domestic formulation to turn out to be the inflection point for the company. The company is set to receive approvals in 25‐30 generics in US along with sole exclusivity in Zetia in 12‐24 months. Launch of Seretide generics and Oncology drugs in key markets such as Brazil, Mexico and Russia will expand operating margin of ROW sales."

"With strong potential in US generics, India formulations and branded generics in ROW markets, we expect a CAGR of 36% in revenues in FY14‐17E on rapid progress in sales and profitability. Key headline margins will be benefitted by 180‐200bps in FY15E‐17E on company's progression in high‐end products in the value chain. With better clarity on US generic potential and Seretide generic approvals in ROW markets, we increase our core earnings estimates by 12% and 35% for FY16E and FY17E, respectively. Our core EPS estimates are Rs25.2, Rs42, and Rs58.5 in FY15E, FY16E and FY17E, respectively. We upgrade our recommendation to 'BUY' and increase TP to Rs1,186, which implies potential upside of 50% at the current valuation", says Prabhudas Lilladher's research report.

For all recommendations,  click here  

Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

To read the full report click here


23.06 | 0 komentar | Read More

2015 Volkswagen Vento Cup drivers finalised

After an incredible total of 550 entries to the first edition of the Vento Cup, 16 drivers have been selected to participate in the Volkswagen Vento Cup 2015. 6 drivers from the previous Polo R Cup season will also be part of the races. The final selection round was split in two and concluded at the Indi Karting Track in Pune. The Vento Cup replaces the Polo R race car this... Read More


23.06 | 0 komentar | Read More

Spectrum auction revenue to help plug deficit: Moody's

Written By Unknown on Kamis, 26 Maret 2015 | 23.06

Terming the high bids received in spectrum auction as "credit positive" for India, rating agency Moody's on Thursday said proceeds from the sale of airwaves will help the government meet its fiscal deficit target.

"From the sovereign perspective, the direct impact will be on the government's finances. The revenue raised from the auction will help the government meet its fiscal deficit targets.

This is credit positive for the sovereign in the near term, particularly since tax revenue receipts have been lacklustre this fiscal year," Moody's Sovereign Risk Group Senior Vice President Atsi Sheth said in a statement.

The fiscal deficit target for 2014-2015 is pegged at 4.1 percent of GDP and for the next fiscal at 3.9 percent. "We expect the government to implement a variety of measures to meet its fiscal deficit targets this year and next.

The spectrum auction will generate part of the revenue growth that helps the government meet its target," Sheth said. The spectrum auction that concluded yesterday fetched the bids worth Rs 1,09,874.91 crore.

Depending on the band, carriers will have to pay as much as 33 percent of their final bid within 10 days of the auction's conclusion and the rest in 10 annual installments starting in 2017.

The permits will be valid for 20 years. "There could be an indirect sovereign impact, through the banking system, from the increase in firms' leverage related to the bids.

However, several other factors will play a role in determining the impact of such leverage on the system, including the sector's growth and profitability.

Therefore, at this time this is an indirect issue from the sovereign perspective," Sheth said. The spectrum was sold at about 68 percent premium, at Rs 1,09,874.91 crore.

At the base price fixed by the government, its value was Rs 65,463.40 crore.

About 11 percent remained unsold which also included 800 Mhz, 1800 Mhz and 2100 Mhz (3G) band.

As per industry chamber Assocham, payment for spectrum won by companies in the auction is expected to push up the debt on telecom operators to about Rs 3.5 lakh crore from current levels of Rs 2.5 lakh crore.


23.06 | 0 komentar | Read More

Taxmen make some defaulters names public

Adopting an aggressive approach, the government has for the first time gone public with names of 18 tax defaulters, including Goldsukh Trade and Somani Cements, who, in all, owe over Rs 500 crore to the exchequer.

In a bid to force them into paying their dues, the Central Board of Direct Taxes (CBDT) posted on its website the names of 18 defaulters, of whom 11 are based in Gujarat.

"Defaulters are adivsed to pay tax arrears immediately," said the notice listing them.

"This is the first time the department has put in public domain a list of those wilful tax defaulters who have a tax liability of Rs 10 crore and above," a senior tax official said, adding that in many cases the assessees were not "traceable".

"We have also provided the PAN number and the last known address of these defaulters so that members of the public could also provide us some information about their whereabouts," the official added.

The official said periodically the department has been proposing "naming and shaming" of wilful defaulters.

The companies in the list include Somani Cement with tax arrears of Rs 27.47 crore, Blue Information Technology (Rs 75.11 cr), Appletech Solutions (Rs 27.07 cr), Jupiter Business (Rs 21.31 cr) and Hirak Biotech (Rs 18.54 cr).

The other Gujarat-based companies which figured in the defaulters list include Icon Bio Pharma & Healthcare Ltd (Rs 17.69 cr), Banyan & Berry Alloys (Rs 17.48 cr), Laxminarayan T Thakkar (Rs 12.49 cr), Virag Dyeing & Printing (Rs 18.57 cr), Poonam Industries (Rs 15.84 cr), Kunvar Ajay Food Pvt Ltd (Rs 15 cr).

Besides, names of Jaipur-based Goldsukh Trade India (Rs 75.47 cr), Kolkata-based Victor Credit & Construction (Rs 13.81 cr), Mumbai-based Noble Merchandise (Rs 11.93 cr) are also there in the list.

The list also includes the legal heir of Pune-based G K Dharne involving a tax default of Rs 38.31 crore.


23.06 | 0 komentar | Read More

ISRO's Dr Radhakrishnan shares his journey to success

Winners of this years EY Entrepreneur of the Year 2014 Awards are an inspiration in themselves and to pay tribute to their triumphs we bring to you a very special series called Passion to Win. Our achiever today was instrumental in launching 37 Indian space missions - Dr Radhakrishnan.

All the winners of this years EY Entrepreneur of the Year 2014 Awards are an inspiration in themselves and to pay tribute to their triumphs we bring to you a very special series called Passion to Win presented by EY which chronicles the success stories of these innovative game changers.

Our achiever today started his career as an avionics engineer in the Vikram Sarabhai Space Centre. He was instrumental in launching 37 Indian space missions as the chairman of the Indian Space Research Organisation or ISRO. He is the extraordinary Dr Radhakrishnan.

Watch accompanying videos for more…..


23.06 | 0 komentar | Read More

Assocham seeks RBI intervention on bank holidays

From March 28 till April 6, the banking transactions are going to be affected due to holidays, the industry body said.

Noting with concern the number of bank holidays between March 28 and April 5, industry body Assocham today sought the intervention of RBI as well as the government to make "some arrangements" to avoid inconvenience to customers.

The holidays will disrupt financial transactions in the stock markets, normal commercial deals, export shipments, import consignments and salary payments, Assocham said. It said that March 28 is holiday on account of Ram Nawami followed by Sunday.

The banks open on March 30 for a day for public and would be out of reach for the general public on March 31 and April 1 due to annual closing. On April 2, along with government offices, they will remain shut because of Mahavir Jayanti, followed by Good Friday on April 3. On the following day, banks work for a couple of hours on Saturday to be followed by Sunday on April 6, it added.

"From March 28 till April 6, the banking transactions are going to be affected," it said. "We would urge the Reserve Bank of India (RBI) to step in and advise the banks to make some arrangements. With the government being the majority owners of the public sector banks, the Finance Ministry should also prevail on the bank managements to avoid this kind of huge customer inconvenience and widespread disruption to the business environment," Assocham Secretary General DS Rawat said in a statement.

On the one hand, government wants the economy to be captured in a formal financial architecture, on the other, "this financial architecture is used to long holidays. Now this is not the vibrant business and economic environment which can make India a financial hub", he said.


23.06 | 0 komentar | Read More

Bajaj Auto launches Pulsar RS 200

Pulsar sells more than 55,000 units every month in the domestic sports motorcycle market with a leadership market share of 43 percent making it India's no.1 sports bike for 14 years in a row.

Eyeing leadership in the Super Sports segment,  Bajaj Auto on Thursday launched the Pulsar RS 200 bike, priced at Rs 1,18,500 and Rs 1,30,268 for the non ABS and ABS versions respectively, ex-showroom Maharashtra.

The company said it plans to sell 2,500 units per month of Pulsar RS 200. "We have launched Pulsar RS 200 in the super-sport segment to offer an unprecedented level of design, engineering and performance.

"The non-ABS version is priced at Rs 1,18,500 and ABS version at Rs 130,268 ex-showroom Maharashtra. This is the first bike having Rs 1,00,000 plus price tag from the company," Bajaj Auto Motorcycle President Eric Vas told reporters.

"We are already market leaders by far in the sports segment and with the launch of Pulsar RS 200 look forward to gaining leadership in the Super Sports segment as well.

The company plans to sell 2,500 units of the Pulsar RS 200 per month and plan to start exports as well," Vas said Bajaj first brought the Pulsar to the Indian market in 2001.

Pulsar sells more than 55,000 units every month in the domestic sports motorcycle market with a leadership market share of 43 percent making it India's no.1 sports bike for 14 years in a row.

"The Pulsar RS 200 has 4 valves spark DTSi engine with fuel injection and liquid cooling.

It unleashes 24.5 PS power and achieves a top speed of 141 km/hr and ....," Vas said. The super sports segment on Thursday stands at less than one percent of the motorcycle market and this bike is all set to re-define and expand this segment, Vas said.

Bajaj Auto stock price

On March 26, 2015, Bajaj Auto closed at Rs 2001.75, down Rs 16.1, or 0.8 percent. The 52-week high of the share was Rs 2690.00 and the 52-week low was Rs 1900.00.


The company's trailing 12-month (TTM) EPS was at Rs 102.16 per share as per the quarter ended December 2014. The stock's price-to-earnings (P/E) ratio was 19.59. The latest book value of the company is Rs 332.04 per share. At current value, the price-to-book value of the company is 6.03.


23.06 | 0 komentar | Read More

Serum's Cyrus Poonawala shares his journey to success

Winners of this years EY Entrepreneur of the Year 2014 Awards are an inspiration in themselves and to pay tribute to their triumphs we bring to you a very special series called Passion to Win. Our achiever today is responsible for the immunisation of 65 percent of the global infant population - Dr Cyrus Poonawala.

All the winners of this years EY Entrepreneur of the Year 2014 Awards are an inspiration in themselves and to pay tribute to their triumphs we bring to you a very special series called Passion to Win presented by EY which chronicles the success stories of these innovative game changers.

Our achiever today is a visionary leader and philanthropist Dr Cyrus Poonawala started the Serum Institute in 1966 from a corner of his family stud farm. Serum pioneered the development of affordable life saving vaccines and is one of the world's largest vaccine producers worldwide producing 1.3 billion doses annually and is responsible for the immunisation of 65 percent of the global infant population.

Watch video for more.....


23.06 | 0 komentar | Read More

Pioneer Urban Co-operative Bank Ltd., Lucknow placed under Directions

The Reserve Bank of India has, after satisfying itself that it is necessary in public interest to do so, issued certain directions to Pioneer Urban Co-operative Bank Ltd., Lucknow. The instructions will remain in force for a period of six months, subject to review from time to time.

Accordingly, Pioneer Urban Co-operative Bank Ltd., Lucknow, from the close of business on March 24, 2015, cannot, without prior approval in writing from the Reserve Bank of India, grant or renew any loans and advances, make any investment, incur liability including borrowal of funds and acceptance of fresh deposits, disburse or agree to disburse any payment whether in discharge of its liabilities and obligations or otherwise, enter into any compromise or arrangement and sell, transfer or otherwise dispose of any of its properties or assets. The bank will:

  1. be allowed to pay to a depositor a sum not exceeding `1,000/- (Rupees one thousand only) of the total balance in every savings bank or current account or any other deposit account. If, however, the depositor has any liability to the bank, that is, either as a borrower or surety, the amount may be adjusted first to the relevant borrowal account/s;
  2. be able to renew the existing term deposits on maturity in the same name and same capacity;
  3. make such expenditure as permitted in the Direction;
  4. not incur or extinguish any other liability unless specifically approved in writing by the Reserve Bank of India; and
  5. continue to undertake banking business with restrictions till its financial position improves.
Detailed directions are displayed on the bank's premises for interested members of public to peruse.

The Reserve Bank may consider modifications of the directions depending upon circumstances.

The issue of direction by the RBI should not per se be construed as cancellation of the banking licence of the bank.

The Reserve Bank of India has issued the directions in exercise of the powers vested in it under sub-section (1) of Section 35A of the Banking Regulation Act, 1949 (As Applicable to Co-operative Societies) read with Section 56 of the Banking Regulation Act, 1949.

Alpana Killawala
Principal Chief General Manager

Press Release : 2014-2015/2031


23.06 | 0 komentar | Read More

Accenture raises revenue growth forecast for second time

Consulting and outsourcing company Accenture Plc raised its full-year revenue growth forecast for the second time as it won more business, mainly in its outsourcing unit, from companies looking to cut costs.

The company also reported higher-than-expected quarterly profit and revenue on Thursday, helped by growth in outsourcing revenue from North American clients.

Accenture's shares rose 3 percent in premarket trading on Thursday.

Revenue in the company's outsourcing business, which accounts for almost half its total revenue, rose 6 percent in US dollar terms in the second quarter, while revenue in its consulting business grew 4 percent.

Accenture said it expected revenue to grow 8-10 percent on a local-currency basis in the year ending August.

The company had raised its revenue growth forecast to 5-8 percent in December from 4-7 percent it forecast initially.

Accenture, however, cut the top end of its full-year earnings forecast range, saying it expected the negative impact of a strong dollar to be higher than previously anticipated.

Accenture, which gets a little more than half of its revenue from outside North America, narrowed its profit forecast range to USD 4.66-USD 4.76 per share from USD 4.66-USD 4.80.

The company's net income rose to USD 743.2 million, or USD 1.08 per share, in the quarter ended Feb. 28 from USD 722.3 million, or USD 1.03 per share, a year earlier.

Net revenue rose 5 percent to USD 7.49 billion.

Analysts on average had expected a profit of USD 1.07 per share and revenue of USD 7.38 billion, according to Thomson Reuters I/B/E/S.

Accenture's shares were trading at USD 91 before the bell.


23.06 | 0 komentar | Read More

Here are some commodity trading ideas from Dharmesh Bhatia

Watch the interview of Dharmesh Bhatia of Kotak Commodity Services with Shereen Bhan on CNBC-TV18, in which he shared his reading and outlook on commodity markets and specific commodities.

Watch the interview of Dharmesh Bhatia of Kotak Commodity Services with Shereen Bhan on CNBC-TV18, in which he shared his reading and outlook on commodity markets and specific commodities.


23.06 | 0 komentar | Read More

Jet Airways lines up more domestic, international flights

The airline is also on course with its plan for becoming profitable by 2018, Jet Airways Chief Executive Officer Cramer Ball said.

Private carrier  Jet Airways on Thursday said it would introduce more flights on both its domestic and international networks and launch new services from three cities to its Abu Dhabi hub during the summers.

The airline is also on course with its plan for becoming profitable by 2018, Jet Airways Chief Executive Officer Cramer Ball said.

"We are increasing five percent capacity on our domestic routes and another 11 percent on the international," Ball told reporters on the sidelines of an aviation summit here.

He said that the carrier also plans to launch new flight services to Abu Dhabi from Pune, Mangalore and Ahmedabad as part of its summer schedule. Airlines' summer schedule in India commences from March 29 and lasts up to October 28 every year.

Ball said that Jet Airways' plans to become profitable in three years were well on track as he underlined that it has seen a lot of improvement in finances recently.

It may be noted that the Naresh Goyal-promoted airline, in which Gulf carrier Etihad holds 24 percent stake, had returned to profitability with Rs 3-crore profit from operations in the three months ending December, 2014, on the back of higher international passenger traffic and lower fuel prices.

The airline had reported the profit in the October- December period after seven straight quarter losses.

The Jet Airways chief executive also said that the airline had no plan to discontinue its subsidiary JetLite, which flies under the erstwhile Air Sahara operating permit.

He also justified the merger of JetLite operations with parent Jet Airways on the grounds that the two brands were creating confusion in the minds of customers.

JetLite was originally Air Sahara before being acquired by Goyal in 2007 and operated as a budget carrier till November last year. But in December, the two carriers were integrated into one to operate under one single full-service brand. 

Jet Airways stock price

On March 26, 2015, Jet Airways closed at Rs 451.20, down Rs 7.1, or 1.55 percent. The 52-week high of the share was Rs 543.50 and the 52-week low was Rs 203.50.


The latest book value of the company is Rs -196.11 per share. At current value, the price-to-book value of the company was -2.30.


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Buy Stylam Industries; target of Rs 135: Firstcall Research

Written By Unknown on Kamis, 19 Maret 2015 | 23.06

Brokerage house Firstcall Research is bullish on Stylam Industries and has recommended buy rating on the stock with a target price of Rs 135 in its research report dated March 18, 2015.

Firstcall Research's report on  Stylam Industries

"Stylam Industries Limited Incepted in the year 1991 as a private limited concern. The foundation stone of the company was laid down by the name of Golden Laminates Ltd. The company started its journey to success from the manufacturing of Luxury decorative laminated sheets for both residential as well as industrial applications. Combining industrious efforts and wide experience, the company deals in industrial as well as advanced laminates i.e. Post forming and Antistatic laminates under the brand name STYLAM. Stylam Industries Limited is an ISO 9001:2008 certified Company that itself shows the integrity, quality and reliability of the company. The design and efficiency of the laminates have assisted the company is winning the award of CE Marking. The company is in the business of laminates i.e. Decorative Laminates, Metallic Laminates, Compact Laminates, Exterior Laminate etc. Over the past 23 years, the company has created multiple drivers of growth by developing a portfolio of world-class products."

"The company has achieved a net profit of Rs. 27.17 million for the 3rd quarter of the financial year 2015 as against Rs. 20.03 million in the corresponding quarter of the previous year. In Q3 FY15, turnover of Rs. 539.54 million against Rs. 475.80 million in the corresponding quarter of the previous year. EBITDA of Rs. 51.30 million in Q3 FY15 and decrease of 25.74% against the corresponding period of last year. The company has reported an EPS of Rs. 3.71 for the 3rd quarter as against an EPS of Rs. 2.74 in the corresponding quarter of the previous year. During the quarter, total Expenditure rose by 23 per cent mainly on account of Employee Benefit Expenses by 19%, consumption of Raw materials by 19% and other expenditure by 5% are the primary attribute for the growth of expenditure. Total expenditure in Q3 FY15 stood to Rs. 515.43 million as against Rs. 419.45 million in Q3 FY14."

"At the current market price of Rs. 116.55, the stock P/E ratio is at 8.52 x FY15E and 7.04 x FY16E respectively. Net Sales and PAT of the company are expected to grow at a CAGR of 19% and 44% over 2013 to 2016E respectively. On the basis of EV/EBITDA, the stock trades at 6.82 x for FY15E and 6.07 x for FY16E. Price to Book Value of the stock is expected to be at 1.91 x and 1.51 x respectively for FY15E and FY16E. We expect that the company surplus scenario is likely to continue for the next three years, will keep its growth story in the coming quarters also. We recommend 'BUY' in this particular scrip with a target price of Rs.135.00 for Medium to Long term investment", says Firstcall Research report.

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Here's inspiring success story of Arundhati Bhattacharya

Winners of this years EY Entrepreneur of the Year 2014 Awards are an inspiration in themselves. EY Passion to Win chronicles the success stories of these innovative game changers. Our achiever today is the first woman chairperson of India's largest bank. – Arundhati Bhattacharya, Chairman, State Bank of India.

Winners of this years EY Entrepreneur of the Year 2014 Awards are an inspiration in themselves. EY Passion to Win chronicles the success stories of these innovative game changers. Our achiever today is the first woman chairperson of India's largest bank. – Arundhati Bhattacharya, Chairman, State Bank of India.


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Accumulate MMFS; target of Rs 280: Prabhudas Lilladher

Prabhudas Lilladher is bullish on Mahindra & Mahindra Financial Services (MMFS) and has recommended accumulate rating on the stock with a target price of Rs 280 in its March 17, 2015 research report.

Prabhudas Lilladher 's report on  Mahindra & Mahindra Financial Services

"We met the management of Mahindra & Mahindra Financial Services to assess the rural loan demand scenario and asset quality trends witnessed by the company. While the pace of deterioration in asset quality has slowed, the recovery in loan growth and margins is likely to be gradual. The fresh disbursements are likely to pick‐up after showing a revival in Q3FY15 however the overall AUM growth is likely to remain modest. MMFS has underperformed the broader market by ~20% over past three months due to concerns on slowing loan growth and high NPL formation. We are revising our estimates downwards to factor in higher credit cost & lower loan growth and thus revise our PT to Rs280 (from Rs300 earlier) based on 2.6x FY17E ABV. We upgrade our rating to Accumulate from Reduce. Weak agri product prices, delayed economic recovery and recent unseasonal rains remains the key risk to our call."

"Business growth is likely to be slow & gradual as economic activity still remains suppressed while farmers have been facing cash flow issues due to (i) non‐payment for produce, (ii) weak prices for few crops (rubber, cotton, soya etc) in international markets, (iii) limited hike in MSP, and, (iv) crop damage due to recent unseasonal rains. However some green shoots are visible in UVs/CVs & Cars but is limited to specific geographies (please see exhibit 1 for comments on various geographies). New customer acquisition rate has moderated to 45,000‐ 47,000 customers per month even as the company maintains a cautious approach on fresh disbursements (9MFY15 disbursement growth stand at: ‐8%)."

"The Management continues to remain cautious on business growth & asset quality for next 2‐3 quarters as states have been facing large issues simultaneously from unseasonal rains, reduced infrastructure activity & bans on various mining activities. We cut our earnings by 16% in FY15E & 5% in FY16E on slow business growth and weak asset quality will keep credit cost high. But management is optimistic on the benefit from greater devolvement of revenue to states from centre which will help develop sustainable social schemes as well as spend on economic & social infrastructure and bring back rural economy story on track. Recent underperformance (~20% in 3 months), stabilizing asset quality and prospects of revival in loan growth from 2HFY16 led us to upgrade our rating to Accumulate from Reduce", says Prabhudas Lilladher's research report.

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Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

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Brokers must put money for resolution plan to work: FTIL

Two days ago, the Bombay High Court quashed Financial Technologies ' plea against the Ministry of Corporate Affairs that sought to oust FTIL's board of directors and today the Company Law Board (CLB) has adjourned the matter till April 17.

FTIL on March 2 said that its board has unanimously opposed the MCA petition to CLB seeking "removal and supersession" of the FTIL board. The board also noted that since the company's four legal suits are sub-judice - including representative suit, fit & proper and writ petition filed opposing amalgamation of NSEL with FTIL, the petition by MCA is inequitable to seek replacement of the entire board.

Speaking on the ongoing tussle, Prashant Desai, MD & CEO of FTIL said that he believes resolution to the matter is a better alternative for clients and shareholders than slugging out a legal battle.

In an interview to CNBC-TV18, Desai said the company has to protect the interest of 63,000 shareholders and that the path of resolution is good for all the parties involved.

Making a fair proposal to resolve the matter, he said brokers need to chip in money for resolution plan to work.

Below is the transcript of Prashant Desai's interview with CNBC-TV18's Sajeet Manghat and Shereen Bhan.

Sajeet: Can you take us through the settlement which you are planning to do for the NSEL investors?

A: It is important to lay out the construct or the building blocks and the thought process behind the proposal that we have made to the government of India. We clearly had two paths, not just FTIL for everybody involved in this so called default crisis. The first path is a very clear path of conflict which everybody is currently going towards. There is a long tail there, you keep on fighting in a legal court of low. We do not when the real judgement comes out and whenever the legal proceedings decide whoever is the so called person responsible for what happened the person or the company will be punished. We believe there is a better alternative which is the resolution path. As FTIL, somebody who has to protect the interest of 63000 minority shareholders, we believe the path to resolution is a path where we believe it is good for everyone. It is good for the so called trading clients of NSEL who have to receive these payouts, it is good for the brokers, it is good for the government, it is good for the country per se and it is definitely good for the FTIL shareholders. So, we have clearly proposed this to the government considering the fact that all the concerned people over here will probably choose to look at the path of resolution and in that our basic construct has been to be fair, equitable, not just to FTIL and its shareholders but to everybody concerned. That is the assumption which we thought was right and we made this proposal. 

It is in line a very simple construct that we are putting, we believe that everybody will have to chip in if there is going to be a fair and just and equitable resolution. We are saying we are taking the lead. Some time back we had already put Rs 180 crore to take care of close to about 50 percent payments to about 7000 trading clients of NSEL. We are saying we will come and put another Rs 320 crore which takes our contribution to about Rs 500 crore. Our view and our very strong view is that brokers are equally party to this because you have to understand the privity of the contract. Trading client was with the broker we had nothing to do with those trading clients. For three years this trading client used the brokers to probably trade on the platform of NSEL. We somewhere believe these brokers are also now getting caught into this. We believe if the broker also with a resolution in mindset pitches in with their Rs 500 crore we will have close to about Rs 820 crore at the first instance.

Let me share with you what this Rs 820 crore does. At the first instance for all the trading clients who were to supposed to receive payouts of less than Rs 10 lakh every single person, 100 percent of them which is close to about 7000 trading clients get 100 percent of their money back.

For those trading clients who have to receive payouts between Rs 10 lakh and Rs 1 crore they will get 50 percent of the money that is owed to them. Then the second leg of our proposal is, that is the contribution from us and from the brokers, we believe that all of us are in sync, government of India, us, brokers, trading clients, let us all put all efforts that we have at our disposal and let us go ahead and recover this money from the defaulters.

If a sum of only Rs 1800 crore is recovered from the defaulters of the Rs 5600 crore of payin that they have to do, we believe that this will take care of 50 percent of the balance amount that one has to pay for all trading clients who are supposed to receive between Rs 10 lakh and Rs 1 crore. For all those who are so called ultra HNIs to have to receive more than Rs 1 crore they will also receive 50 percent. In effect 94 percent of trading clients will receive payouts where some of them will receive close to about 50 percent, some of them will receive about 100 percent.

Sajeet: There are two issues with this, one you haven't approached the brokers in this. Second, the question of number of investors is now in question because even NSEL is questioning the fact that of the 7500 investors which were supposed to be paid out in the first where you brought in Rs 179 crore they can only trace about 3500 investors. So, how have you gone about approaching the brokers because brokers are not onboard earlier as well when you were trying to come out with a settlement formula which was being done behind when Jignesh Shah was in the executive capacity and now especially when heat is on them?

A: Somebody had to take the first step. Currently what we saw is there is too much of negativity going around. Everybody is fighting with each other, we decided somebody has to take a first step with resolution in mind. So, we have made that first step. In all earnest and the details of the proposal that I shared with you we went to the government and we have proposed the thing. We now believe the ball is in governments court. We are sure at some point of time government will consider this whether they consider exactly this, they have a modification to this we are not privy to that but government will get in touch with the brokers. As I said the principle context of this thinking or the thought process is all of us will have to bring on table a resolution mindset. If everybody brings a partial resolution and a partial conflict mindset I don't think this will flow through. Our approach is we are showing that first step from our side.

Shereen: If I can interrupt you and just to take Sajeet's point forward because as you mentioned that you envisaged this settlement, you have decided to take the first step. You would hope that the brokers will also participate and chip in with another Rs 500 crore but what has been the response from the brokers so far and what gives you the confidence that the government will entertain this settlement proposal in any fashion?

A: Yes, good question. Two things- have we approached the brokers, the answer to that is clear no. As I said, somebody had to take the first step, we would believe that FTIL is the first person that has now decided to take the first step. Will the government consider this, not up to me, it is up to the government and as I said, the principal construct of this that everybody will have to have a resolution mindset. It is not something that I can achieve all on my own so, that is my first point. 

Second point to answer Sajeet's question in terms of the genuineness of the trading clients etc, I am saying that is a exercise which NSEL is doing on its own, we do not want to interfere with that exercise. Our proposal has an underlying assumption. Our underlying assumption is that all 13,000 probably are genuine. If they are genuine they will get the claim, if they are not genuine they will not get the claim. The way we are also proposing this is in a very open transparent manner, there is a government of India that steps forward, Bombay High Court has already appointed a committee; let that committee also participate, let brokers also come in, let the real genuine trading clients who were supposed to receive these payouts, let them also join in. All I am saying is we want to bring a lot more positivity from a resolution mindset.

Shereen: But speaking of a resolution, the government seems to have made up its mind as far as FTIL is concerned and today the matter was taken up by the CLB. It has now been adjourned to April 14 th but the MCA petition is seeking the ouster of the FTIL board, the MCA petition alleges that the FTIL board is not fit and proper. It does not seem like the government is likely to buy a settlement proposal being put forward by FTIL on the face of it?

A: Efforts are in our hand, results are not. Somebody had to make the first move, we believe we have done so. We have tried to be as fair as we thought we could be in proposing. Now the ball clearly is in the government's courts and as I was explaining , we are not stopping the government from taking a path of conflict. They can go ahead; they can take a path of conflict. They have all the weaponry and arsenal in their capacity which they can use. As much as the weaponry and arsenal that they have to use against us, our view is we also have the court of law. We have the highest regard for India as a country, India as a democracy. We believe the institution of law in India are one of the most powerful all over the world and make no mistake, we will fight that battle as well in the court of law.

As regards your 396, 397 I am saying government has a point of view on 397, we have a point of view on 397. Through your media and through your channel let me just make a couple of perspectives which will give you some insight of what will probably pay out either in the court of law or company law board. The entire 12 member board that we have today, this board has only taken one decision thus far, just one decision and that decision has been to oppose the amalgamation of NSEL with FTIL and why is that decision being taken, in fiduciary capacity to protect the interest of my 63,000 plus shareholders. Question to you today as media, isn't board justified in taking that stance? By ousting the board what exactly do you think the government probably will do? They will instead of opposing the amalgamation, they will probably say, okay as a new board I will vote in favour of merger. So, these are some of the arguments that will play out in a court of law. 

Shereen: Not for us to make judgement calls on whether it is fair or not fair or what the government or what FTIL or NSEL or the CLB is likely to do on this matter but let me ask you whether in your capacity now that you have decided to take the first step and forward a proposal of some sort which we are given to understand brokers are not on board with at this point in time, you are saying that you have not reached out to the brokers to start with but do you have the capacity to better this proposal?

A: It is a very hypothetical question; to a hypothetical question what do I answer? The question is if everybody—I look at life very simply, I live my life very simply. It is very simple; if everybody has a resolution mindset I don't think this is that big a problem. If you look at US for example, this whole credit default swap that happened, they resolved a problem of that big magnitude. You mean to say the government of India, us, the trading clients who had to receive the money and the settlement payout and the brokers, all four of us together in this country at this stage of this country will not be able to resolve, answer to this?


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Buy Kajaria Ceramics; target of Rs 860: Kotak Securities

Brokerage house Kotak Securities is bullish on Kajaria Ceramics and has recommended buy rating on the stock with a target price of Rs 860 in its research report dated March 19, 2015.

Kotak Securities 's report on  Kajaria Ceramics

"Consumption of tiles has grown at a CAGR of 13% over last 4-5 years and has been led by increasing consumerism and urbanization. Despite slowdown being witnessed in the real estate sector, we expect the demand scenario to remain strong going forward in medium to long term coming mainly from tier 2 and tier 3 cities led by rising income levels, increasing urbanization, change in consumer preferences as well as on account of replacement demand. This is likely to benefit Kajaria Ceramics as company is ideally positioned to capture incremental demand with its strong distribution network."

"Kajaria Ceramics has expanded its capacity by 7.5 Mn sq m during H1FY15 and another 5 Mn sq m expansion at Taurus JV is likely to commission by March, 2015. Company is also on track for its brownfield expansion of 3 Mn sq m at its existing location in Rajasthan for ceramics tiles. Thus, it plans to reach a capacity of 62.1 mn sq m by end of FY15. With further greenfield expansion of 5 Mn sq m of polished vitrified tiles at a new location in Rajasthan, company is expected to increase its capacity to 67.1 mn sq m during FY16. This is likely to result in strong volume growth going forward. We thus expect volumes to grow at a CAGR of 15.6% between FY14-FY17."

"GST implementation is likely to be a game changer for the sector as it is likely to result in higher taxation for the unorganized sector. Due to excise duty avoidance and lower taxes being paid by the unorganized sector, they were able to price their products at cheaper rates as compared to the organized players. Expected implementation of GST by April, 2016 is likely to reduce the cost differential between the unorganized and organized players, thereby providing a level playing field. This is then likely to result in shift in customer's preferences towards organized sector due to lower cost differential, better quality and design. We expect Kajaria Ceramics to benefit significantly post the implementation of GST."

"Stock is currently trading at attractive valuations of 24.5x and 20.6x P/E on FY16 and FY17 estimates. We tweak our estimates and also introduce FY17 estimates. We value the company at 23.5x P/E and arrive at a revised price target of Rs 860 on FY17 estimates (Rs 712 on FY16 estimates earlier). We continue to maintain BUY recommendation on the stock. Key risk to our recommendation would come from sharp hike in gas prices or rupee depreciation or demand slowdown", says Kotak Securities' research report.

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