Friday, April 19News That Matters

Month: February 2014

Stock Analysis – Speciality Restaurants

Stocks
Business Speciality Restaurants is a fine dining chain which has presence in 25 cities through its popular brands Mainland China, Oh! Calcutta, Global Grill, Sigree Global Grill, Mezzuna and Hoppipola. Over the next 2 years, it plans to add 25-30 outlets to its existing chain of 90 restaurants and 16 confectionaries. Financials The company's flagship brand Mainland China contributes 58 %  to its total revenues. The company's net revenue during the period grew to Rs 214.8 crore while its operating profit margin was stable at 21.9 per cent. compounded annual growth rate (CAGR) of 13.6 per cent in the past three years despite a fall in domestic discretionary spending. The company has managed a large part of this expansion from the proceeds of its initial public offering ( IPO) in 2012...

HDFC MF to raise Rs 1500 crore for real estate via HDFC AIF

News
27-Feb-2014 (ET) HDFC Mutual fund is planning to raise Rs 1500 crore to invest in real estate through its new division HDFC Alternate Investment Fund (AIF). The company has received its licence for alternative investment funds in 2013. Earlier HDFC Mutual Fund was investing in real estate through its division HDFC Portfolio Management Services. They had raised Rs 3,800 crore in 2008. In May last year, SEBI has notified the guidelines for alternative investment funds. The minimum investment under this category in Rs 1 crore.  These funds will be close-ended with a tenure of not less than three years and the maximum number of investors will be 1,000 entities. Other AIF Jones Lang LaSalle India's Segregated Funds Group closed its first real estate fund — Residential Opportunities Fund-I —...

Top 10 midcap stocks to bet in 2014 : Dolat Capital

Stocks
Here is a list of Dolat Capital's top ten stocks to beat volatility in markets for a period of 12 months:  The brokerage firm do believe that the economy and cyclicals may have seen the worst of troughs in this cycle, however any meaningful recovery in our opinion is only likely during FY16. What we are more curious to estimate is the pace of growth on the recovery mode, and how much can it justify the current valuations. And that will be significantly influenced by the political situation post May elections.  The key indices remain at the similar levels having corrected post the state election results rally. At 13xFY15, the brokerage firm believe we are in the perfect centre and could swing either ways 15-20 per cent next few months.   Company Target  Price Market Price...

Mutual Funds industry set to consolidate

News
13-Feb-2014 Market regulator SEBI has now raised the minimum net worth requirement of Asset management companies (known as Mutual funds companies) from Rs 10 crore to Rs 50 crore. This will also ensure that only serious players are active and the mutual funds are of reasonable size & help in financial inclusion across the country.  This will effectively reduce the entry of new players & thereby de-clutter multiple similar schemes. A mutual fund investor will have to look at lesser number of mutual funds before short-listing where to invest. To encourage merger and consolidation of equity mutual funds schemes, the SEBI said that “similar to merger/consolidation of companies, the merger/consolidation of equity mutual funds schemes also may not be treated as transfer, and, therefore...

Single DMAT Account for all financial investments by 2015

News
Feb 4 2014 Finance minister P Chidambaram has asked financial sector regulators to prioritise moving to a single DEMAT account for all financial investments. Chidambaram was chairing a meeting of the Financial Stability Development Council and asked regulators to priortise common demat account for financial assets, which will add considerable benefits to consumers. 6-Feb-2014 Few days later, Market regulator SEBI said investors will soon be able to have a single dematerialized account for all classes of their financial investments. SEBI, Joint Director, Prabhakar R Patil at an annual national conference at Guru Jambheshwar University of Science and Technology (GJUST) said -  "All financial instruments can be operated through single dematerialized account and this facility will be op...

FIIs invests Rs 11000 crore in Debt Market in Feb 2014

News
23-Feb-2014 Because of stability in foreign exchange and interest rates,  FII inflows into debt are returning. They have invested almost Rs 11000 crore in debt market in Feb 2014. In 2013, FIIs were net seller in Bonds.  In 2013, they withdrew Rs 50,847 crore (USD 8 billion) from the bond market and infused Rs 1.13 lakh crore (USD 20.1 billion) in equities. Till February 21 2014,   FIIs were gross buyers of debt securities worth Rs 21,210 crore and sellers of bonds to the tune of Rs 10,219 crore till February 21, resulting in a net inflow of Rs 10,991 crore (USD 1.77 billion)

Moody’s offer to buy majority stake in ICRA

News
Feb 21 2014 US based credit rating agency Moody’s Investors Service has proposed to increase its stake in its Indian arm ICRA by purchasing an additional stake of at least 21.5% in the company through a share buyback, taking its holding to 55%. Currently, Moody’s is the single largest shareholder in ICRA with a 28.51% stake it holds through its subsidiary Moody’s Investment Co. India Pvt Ltd.  Under the offer, Moody’s Singapore Pte Ltd will pay Rs.2,000 for every ICRA share, which is a 25% premium to the India company’s closing price on Friday. At present, around 54 per cent of ICRA’s equity are held by institutions, while the rest are spread among individuals, corporate bodies and NRIs. For the quarter ended December 31, 2013, ICRA reported an 11 %  rise in operating income at Rs 42.53 ...

Top Stocks which are interest proof

Stocks
In the current High Interest rate environment, the interest expenses will be higher for high debt companies and therefore lower profits. There is inverse correlation between interest rates and corporate profits. So, investors can focus on companies which have very low / nil debt. The list of companies with low debt equity ratios and the returns these have generated over the past decade is as under: ITC Infosys NMDC Oracle Financial Colgate Container Corp Cummins CRISIL Bharat Electro Hindustan Copper Engineers India Marico Dr Reddys Wipro Torrent Pharma Mphasis Thermax Tata Communication Feel free to comment below, if you hold other good stocks.....

Income Tax Dept to send notices to further 21.75 lakh “non-filers”

News
The Income Tax Department has now performed the 2nd round of data matching and identified additional 21.75 lakh potential non-filers     The department had initiated a business intelligence project in February 2013 to identify PAN holders who have not filed I-T Return and about whom specific information is available in Annual Information Return (AIR), Central Information Branch (CIB) data and TDS/TCS Returns.  The department has already sent letters to the 50,000 potential non-filers in the first batch..  The results of this initiative are very encouraging and 5,36,220 returns have been received from the target segment. Self assessment tax of Rs 1,017.87 crore, and advance tax of Rs 898.22 crore has also been paid by the target segment IT dept has urged all tax payers to d...

V-Mart Retail – Institutional Investors acquire 10% stake

News
Feb 18 2014 Kotak Mahindra (International) Limited bought 1.02 million shares Citigroup Global Markets Mauritius Private Limited bought 0.72 million shares The deal represents approx 10% stake in the company and on an average price of Rs 300. The company's trailing 12-month (TTM) EPS was at Rs 14.04 per share. (Dec, 2013). The stock's price-to-earnings (P/E) ratio was 19.94. The latest book value of the company is Rs 82.22 per share. 52 week high price - Rs 300 52 weak low price - Rs 104 Market Cap - RS 485 crores  FIIs are showing interest in this stock as during April 2013 - Dec 2013 , they have acquired almost 15% stake.  FII Holding in Mar 2013 was 0.18%  ,  which is increased to  15.13 % in Dec 2013.