How to choose the best mutual fund for your portfolio

Selecting Right Mutual Fund is like selecting Right Life Partner. Any wrong decision can wipe out your personal wealth. What makes it more difficult is volatility in performance of mutual fund. Some people select Mutual Fund only on the basis on their rankings.

If mutual fund rankings  are 100% correct then all portals or financial advisers should suggest same set of mutual funds to their clients or readers. You will find large variation in the rankings of Mutual Funds.

Second problem is volatility in performance. A star performer fund this year might be worst performing fund next year. It is advisable to review the investment portfolio every 6 to 12 months. In short, undertake the exercise of selecting right mutual fund every 6 to 12 months. Third problem with Indian investor is that they invest without evaluating the investment objective. Reason being investment objective help to decide in which mutual fund class the investor should invest.

Lastly, it is absolutely necessary to understand in which direction economy will move in next 12 months.

Choosing a scheme from thousands of mutual fund schemes available in the market is not easy for many investors. Opting for the right mutual fund scheme is one of the biggest hurdles faced by many new investors. However, you would be fine if you are ready to follow some broad guidelines.

Alpha

A measure of a scheme’s over- or under-performance by comparison to its benchmark. It represents the return of the scheme when the benchmark is assumed to have a return of zero, and thus indicates the extra value that the manager’s activities have contributed.

Beta

Beta is a statistical estimate of a scheme’s volatility by comparison to that of its benchmark, i.e. how sensitive the scheme is to movements in the section of the market that comprises the benchmark. Beta close to 1 means a scheme is likely to move in line with its benchmark, greater than 1 and the scheme is more volatile than the benchmark.

r 2

The R-Squared measure is an indication of how closely correlated a scheme is to an index or a benchmark. It uses an R-Squared range between 0 and 1, with 0 indicating no correlation at all, and 1 showing a perfect match. Values upwards of 0.7 suggest that the scheme’s behaviour is increasingly closely linked to its benchmark, whereas the relevance begins to diminish below that.

Sharpe

Sharpe calculates the level of a scheme’s return against the return of a notional risk-free investment, such as cash or Government bonds. The difference in returns is then divided by the scheme’s standard deviation – its volatility, or risk measurement. The resulting ratio is an indication of the amount of excess return generated per unit of risk. Therefore, a negative Sharpe usually suggests investments would have been better off in risk-free government securities. When analysing similar investments, the one with the highest Sharpe has achieved more return while taking on no more risk than its fellows – or, conversely, has achieved a similar return with less risk.

riskVolatility

Volatility is calculated using standard deviation, a statistical measurement which, when applied to an investment scheme, expresses its volatility, or risk. Volatility shows how widely a range of returns varied from the scheme’s average return over a particular period.

Lower volatility means that the holding’s value changes at a steady pace over time.

Higher volatility means that the holding’s value fluctuates over short time periods.

Discrete Performance

The aggregate amount that the investment has gained or lost between two specified time periods.

Distribution of Returns

Distribution analysis looks at the distribution of returns over a given time period. The X axis shows all the possible returns with the theoretical range of -100% to + infinity.

The Y axis shows the frequency with which these returns occur. The purpose of this sort of analysis is to look past the scheme’s average return and determine whether it is the most likely return. This is done by looking at the bell curve and measuring the distributions skew and kurtosis.

Do Not Compare Yourself with Other Investors While Making Investment

Simple Annualised Performance

The absolute increase or decrease in value of an investment over a given period of time, expressed as a percentage per year.

Dividend Yield

The return on an investment by means of interest or dividends received from the holdings. Dividend Yield within fact sheets is supplied by the Scheme Manager on a regular basis, who is under no obligation to define the type of dividend yield supplied i.e. Gross/Net or Running/Redemption.

Tax treatment of dividends

Dividends received from all mutual funds are tax free in the hands of the investors.

However, in the case of debt funds the fund house pays a dividend distribution tax of 28.84% which includes surcharge and cess. In an equity mutual fund there is no dividend distribution tax.

Absolute Performance

This measure looks at the appreciation or depreciation that an asset achieves over a given period of time.Unlike Relative performance, which is compared to another measure or benchmark.

Calendar Year Performance

The aggregate amount that the investment has gained or lost between the dates 1st January to the 31st December for the specified year.

Compound Annualised Performance

The rate of return which represents the cumulative effect that a series of gains or losses have on an original amount of capital over a given period of time, typically one year and above, expressed on annual basis or return per year.

Note : Past performance of fund does not guarantee the future returns.

DISCLAIMER

No financial information whatsoever published anywhere here should be construed as an offer to buy or sell securities, or as advice to do so in any way whatsoever. All matter published here is purely for educational and information purposes only and under no circumstances should be used for making investment decisions. Readers must consult a qualified financial advisor prior to making any actual investment decisions, based on information published here.

Amber Enterprises India Limited IPO Review and GMP

Punjab based Amber Enterprises India Limited (Incorporated in 1990) is manufacturer of air conditioners and its component in India. With the market share of 55.4%, Amber is the market leader in the Room Air Conditioner . The company manufactures RAC’s for 8 out of the 10 top RAC brands in India including Daikin, Hitachi, LG, Panasonic, Voltas and Whirlpool. These 8 brands have over 75% of market share in India.The Company has 10 manufacturing facilities across seven locations in India.

Super anchor book! Sold 20.8 lakh equity shares to 15 anchor investors for Rs. 178.71 crore

Abu Dhabi Investment Authority
Blackrock India Equities Mauritius Limited
Goldman Sachs India Limited
Kuwait Investment Authority Fund
ICICI Prudential Business Cycle Fund Series 2
ICICI Prudential Value Fund – Series 10
HDFC Small Cap Fund
SBI Magnum Multicap Fund
Reliance Small Cap Fund
Aditya Birla Sun Life

List of Anchor Investors :

Download (PDF, 283KB)

 

amber11111

The Product portfolio includes :

1. Room Air Conditioners : This includes window air conditioners and indoor units and outdoor units of split air conditioners.

2. RAC Components : Critical components such as heat exchangers, motors and multi-flow condensers.

3. Other Components : Other related components including case liners for refrigerator, plastic extrusion sheets for consumer durables and automobile industry, sheet metal components for microwave, washing machine tub assemblies and for automobiles and metal ceiling industries.

The Company has a dedicated R&D centre at its Rajpura facility which is equipped and is accredited by National Accreditation Board for Testing and Calibration Laboratories (NABL) with ISO/IEC 17025:2005 certification and facilities for 3D modelling, quality and product testing.

IPO Particulars:

IPO Opens on : 17th Janaury 2018
IPO Closes on : 19th January 2018
Issue Type: Book Built Issue IPO
Issue Size:[.] Equity Shares of Rs 10 aggregating up to INR 600.00 Cr
#Fresh Issue of [.] Equity Shares of Rs 10 aggregating up to INR475.00 Cr
#Offer for Sale of [.] Equity Shares of Rs 10 aggregating up to INR 125.00 Cr
Face Value: INR 10 per Share
Price Band: INR 855-859 Per Equity Share
Minimum Order Quantity:17 Shares
Listing will at: NSE,BSE

Tentative Timetable:

Finalisation of Allotment : 24 January 2018
Refund : 25 January 2018
Transfer of Shares to Demat A/c:29 January 2018
Listing Expected on 30 January 2018

Objects Of The Issue:-

  • Prepayment or repayment of all or a portion of certain borrowings – INR400 crore
  • General Corporate purposes – remaining amount

Lead Managers:

Edelweiss Financial Services Limited
IDFC Bank Limited
SBI Capital Markets Limited
BNP Paribas

Registrar to the IPO:

Karvy ComputerShare Private Ltd

Promoters Of the Company:-

  1. Jasbir Singh
  2. Daljit Singh

Global Air Conditioner Market Split by Segments

amber 2

Global RAC Volume Market Size and Forecast (Million Units)

amber3

RAC Market Penetration – Select Asian Countries and Global

amber4

Competitive Strengths

1. Market leadership in the RAC OEM/ODM industry in India.

2. One stop solutions provider for the RAC industry with high degree of backward integration.

3. Strong customer relationships with the majority of leading RAC brands in India.

4. R&D and product design capabilities leading to high proportion of ODM business.

5. Track record of financial performance.

6. Economies of Scale.

7. Culture of innovation and highly experienced management.

Market Penetration of Consumer Durables, India vs. Global (%), Fiscal 2015

amber5

Evolution of Room Air Conditioners in India

amber6

Financial Highlights

  • Amber Enterprises net worth, as of Sept. 30, was close to Rs 363 crore, translating into book value of Rs 115 a share after fresh issuance.
  • Its revenue has been growing at an annualised rate of 17 percent, while net profit rose at 9 percent in five years to March 2017.
  • For the first half ended September, revenue and net profit stood at Rs 938 crore and Rs 27 crore, respectively.
  • Earnings before interest, tax and depreciation and amortisation grew at a CAGR of 23.5 percent, while Ebitda margins expanded 150 basis points in the last five years to 7.8 percent.
  • For the first half ended September, Ebitda and margins stood at Rs 84 crore and 9 percent, respectively.
  • The company has a total debt of close to Rs 554 crore, which would fall it looks to use Rs 400 crore from the IPO proceeds to pare debt.

Market Structure RAC

amber7

Market Share Analysis RAC

amber 8

Key Strategies

Expansion of existing product portfolio with a focus on ODM.

Expand domestic customer base and grow export sales.

Continuing innovation and strengthening the R&D capacity.

Pursue selective acquisitions, partnership opportunities and inorganic growth.

Continue to focus on increasing efficiency and profitability.

Reliance Nippon Life Asset Management ( First MF ) IPO Review

Negative

Amber’s business is dependent on certain principal customers and the loss of, or a significant reduction in purchases by, such customers could adversely affect its business, financial condition, results of operations and future prospects.

If its customers do not continue to outsource manufacturing, or if there is a downward trend in OEM/ODM business, its sales could be adversely affected.

Any slowdown in the RAC industry may adversely impact its business, results of operations, financial condition and cash flows.

Amber’s inability to identify and understand evolving industry trends, technological advancements, customer preferences and develop new products to meet its customers’ demands may adversely affect its business.

Amber do not have firm commitment agreements with its customers. If its customers choose not to source their requirements from us, its business and results of operations may be adversely affected.

Amber have experienced growth in the past few years and if company are unable to sustain or manage its growth, its business and results of operations may be adversely affected.

Amber failure to compete effectively in the highly competitive RAC and equipment manufacturing industry could result in the loss of customers, which could have an adverse effect on its business, results of operations, financial condition and future prospects.

Pricing pressure from customers may adversely affect its gross margin, profitability and ability to increase our prices.

Amber manufacturing capacity may not correspond precisely to customers’ demands which may affect its results of operations.

Amber Enterprises and its Subsidiaries are involved in certain legal proceedings, which, if determined against us could have a material adverse effect on its financial condition, results of operations and its reputation.

Amber have undertaken and may continue to undertake strategic investments and alliances, acquisitions and mergers in the future, which may be difficult to integrate and manage. These may expose us to uncertainties and risks, any of which could adversely affect its business, financial condition and result of operations.

Dixon Technologies IPO – Review

Peer Comparison

Amber Enterprises has no listed competitors. Dixon Technologies Ltd. has a similar business model but caters to a different market—an equipment vendor for makers of washing machines, LED televisions, lighting products and mobile phones.

Valuations

“At the higher end of the price band of Rs 859, the issue is valued at 96.8 times price to earnings (PE) on FY17 basis (post dilution) and 49.4 times on first half of FY18 (annualized) basis. While the company holds leadership position , it is difficult to justify its valuation due to lack of clarity of the growth trend in the financial performance.

“Single digit earnings before interest, taxes, depreciation, and amortization (EBITDA) margin, average of 8% for last 5 years and return on equity is 10%.

Grey market premium

GMP is 575, Kostak is 550, Subject to Rs. 6000/-

Conclusion

Investors may consider for short to medium term gain.

DISCLAIMER

No financial information whatsoever published anywhere here should be construed as an offer to buy or sell securities, or as advice to do so in any way whatsoever. All matter published here is purely for educational and information purposes only and under no circumstances should be used for making investment decisions. Readers must consult a qualified financial advisor prior to making any actual investment decisions, based on information published here.

 

Future Supply Chain Solutions Ltd IPO Review

Future Supply Chain Solutions Ltd. (FSC) is a supply chain and logistics company. Future Supply Chain Solutions is part of Kishore Biyani’s Future Enterprise Ltd. The company was incorporated in 2006. The company offers automated and IT-enabled warehousing, distribution and other logistics solutions. It has customers in various sectors all across India, including ATMs, automotive and engineering, retail, fashion & apparel, food – beverage, FMCG, e-commerce, health-care, electronics and technology, home and furniture.

It has 42 distribution centers across India, which covers approximately 3,500,000 square feet of warehouse space.

List of anchor investors

Download (PDF, 601KB)

The company offers customers services in three key areas:

  1. Contract Logistics
  2. Express Logistics
  3. Temperature-Controlled Logistics

The promoters :

Future Enterprises Limited ( Kishore Biyani Group company)

Main objects of the issue are:

1. Avail the benefit of listing of the Equity Shares on the Stock Exchanges;
2.To Enhance stability and brand image and
3.To provide liquidity to its existing shareholders.

FUTURE

IPO Dates & Price Band:

  • IPO Open: 06-December-2017
  • IPO Close: 08-December-2017
  • IPO Size: Approx Rs. 650 Crore (Approx)
  • Face Value: Rs. 10 Per Equity Share
  • Price Band: Rs. 660 to 664 Per Share
  • Listing on: BSE & NSE
  • Retail Portion: 35%
  • Equity: 9,784,570 Shares

Market Lot:

  • Shares: Apply for 22 Shares (Minimum Lot Size)
  • Amount: Rs.14,608

Allotment & Listing:

  • Basis of Allotment: 12-December-2017
  • Refunds: 14-December-2017
  • Credit to demat accounts: 14-December-2017
  • Listing: 18-December-2017

IPO Registrar:

Link Intime India Private Ltd

Lead Managers:

  • IDFC Bank Limited
  • IIFL Holdings Limited
  • Yes Securities (India) Limited

Do Not Compare Yourself with Other Investors While Making Investment

Risks and Upsides

Logistics service providers face the following general challenges in the market:

Foreign direct investment activity is uncertain and is dependent on global policies and market volatility.

A slowdown in the user industry could affect the volumes handled by logistics service providers.

Quality and availability of infrastructure could impact performance.

Intense competition and low barriers to entry in certain segments could affect logistics service providers.

Increasing scale could be challenging.

The express logistics industry is sensitive to high operating costs; and

There is a need to continuously invest in and evolve technology.

Strengths

One of the largest service providers with an extensive network of facilities in a fast-growing third-party logistics market.

Comprehensive solution for supply chain requirements.

Diverse customer base across many sectors.divrsificationAt the forefront in introducing new standards of technology and automation in the logistics industry in India.

Longstanding relationship with Future Entities.

Experienced management team with logistics and retail sector-specific knowledge.

Khadim India Limited IPO Review

Strategies

Capitalise on the growth of the third-party logistics industry in India.

Target growth by identifying new customers, increasing its share of existing customers’ third-party logistics spending and leveraging existing relationships.

Expand addressable market through customized and new service offerings.

Invest further in infrastructure and expand its network.

Explore inorganic growth opportunities.

Continue to improve operating efficiencies and implement technological and process enhancements.

indian log mktNegative

The Future Entities are its key customers and its Promoter and certain of its Group Companies account for a significant portion of its revenue. Any failure to maintain its relationship with these customers will have a material adverse effect on its financial performance and results of operations.

FSC’s business is affected by prevailing economic conditions in India and indirectly affected by changes in consumer spending capacity in the sectors we serve within India.

FSC may face competition from a number of international and domestic third-party logistics companies, which may adversely affect its market position and business.

Delays or defaults in payment by its customers could affect its cash flows and may adversely affect its financial condition and operations.

An inability to pass on any increase in operating expenses to its customers may adversely affect its business and results of operations.

FSC are heavily dependent on machinery and equipment for its operations. Any breakdown of its machinery or equipment will have a significant adverse effect on its business, reputation, financial results and growth prospects.

FSC business is highly dependent on technology and automation and any disruptions of or failure to update such technology or automation could have an adverse effect on its results and operations.

Changing regulations in India could lead to new compliance requirements that are uncertain.

The trend toward outsourcing of supply chain management activities, throughout India or within specific sectors, may change, thereby reducing demand for its services.

Conditions and restrictions imposed on FSC by the agreements entered into with some of its customers could adversely affect its business and results of operations.

The performance of its express logistics and temperature-controlled businesses may continue to decline.

Dependence on third-party vendors could have an adverse effect on its business financial condition and results of operations.

Some of its lease agreements may have certain irregularities.

FSC’s Promoter, Group Companies, and Directors are involved in certain legal proceedings and potential litigation.Any adverse decision in such proceedings may render us/them liable to liabilities/penalties and may adversely affect its business and results of operations.

Compititive positioning of Logistics service providers 

KEYFinancials

For FY 2017, 2016 and 2015, the revenue from operations was Rs. 5,611.83 crores, Rs. 5,198.70 crores, and Rs. 4,079.63 crores, respectively. (A CAGR of 17.3%.)

For FY 2017, 2016 and 2015, the net profit was Rs. 457.54 crores, Rs. 294.27 crores, and Rs. 246.57 crores, respectively, (A CAGR of 36.2%.)

For FY 2017, 2016 and 2015, the EBITDA was Rs. 742.82 crores, Rs. 699.40 crores, and Rs. 639.40 crores, respectively, (A CAGR of 7.8% during the last three Fiscals.)

Financial snapshot of Key companies.

financial snapshotValuations

On the upper price band of Rs.664/- and Restated FY17 EPS of Rs.11.69, P/E ratio works out to be 56x. Even based on last three years restated EPS of Rs. 9.41, P/E ratio works out to be 70x. Means, companies are asking higher price band of Rs.664/- in the P/E ratio of 56x to 70x. Its only listed peers Mahindra Logistics Ltd. is trading at P/E ratio of 68x. Hence we compare this way; Future supply chain is overpriced.  

Grey market premium

Currently, Grey market premium is Rs. 20/- ( Seller )

DISCLAIMER

No financial information whatsoever published anywhere here should be construed as an offer to buy or sell securities, or as advice to do so in any way whatsoever. All matter published here is purely for educational and information purposes only and under no circumstances should be used for making investment decisions. Readers must consult a qualified financial advisor before making any actual investment decisions, based on information published here.

 

The biggest worry for global financial markets is China

China is the 2nd largest economy in the whole world and carries substantial economic hit with its trading partners. However, the slight fall in China’s equity market on 23rd November 2017 has set a fret in financial markets of China.

China Blue-chip stock index, CSI 300 had experienced its worst downfall in 17 months on 23rd of November. CSI 300 index fell by 2.93% as the market became worried about rising bond yields and PBoC deleveraging campaign.

CHINA

The current year, China’s bond yields have risen by 93 bps and are trading at 3-year highs. The sharp rise in China bond yields specifies the government’s determination to control corporate debt, which involves them in a talk that Chinese economy could fall in the coming future.

                                                        China CSI 300 Index

CSIThe top stock on Hang Seng was WH Group Ltd which stood up 1.69% and the stock which suffered loss was AAC Technologies Holdings Inc which sustained a downfall of 4.24%.

The 3 biggest H-shares percentage decliners were China Pacific Insurance Group Corporation Ltd which had a downfall of 4.73%, New China Life Insurance Corporation Ltd which has 4.7% and China Merchants Bank Corporation Ltd down by 4.1% while the biggest stocks which perform well were China Minsheng Banking Corporation Ltd which stood up 2.41%, Great Wall Motor Corporation Ltd which gained 0.98% and China railway Construction Corporation Ltd who stood up 0.77% in the Chinese financial market.

                                                China 10 Years Bond Yields

BONDSThe CSI 300 index is moving smoothly by 3.3% and closed down at 3% which is its biggest loss since June 2016 i.e., within 17 months. The ChiNext Index stood down by 3.2% which is its highest downfall in 4 months. The other two stocks, i.e., Shanghai Composite Index and Shenzhen Composite Index fell more than 2% that day.

Three finance lessons for your child

According to the report, China’s five years corporate bond yields had risen by 33 bps in November 2017, which has hit a three year high of 5.3%. In China, there is more than 1 trillion dollar of local bonds which are going to get matured in the coming year 2018-2019, therefore, it is going to be expensive for these firms to roll over financing.

 

Do Not Compare Yourself with Other Investors While Making Investment

There is very fine line said by Dan Jensen that, ‘The only goal is to be better than myself, my biggest competition is with no one but myself only.’ that simply means that one should not compare himself with others in any aspect of life but try improving his own work and skills and same applies while making an investment and expecting positive results from it.

In other words, comparing yourself with others can be a very futile and caustic act as we all have our own different goals and skills and we all are not in the same race, our ways to make investments are dissimilar.

Have you ever seen Warren Buffett making any investment with Carl Ichan strategies or Peter Lynch making any investment in David Tepper’s style? The answer is a clear No because they all have their own rules and strategies to make investments and create positive results out of it. Some ways of investing are for long-term, some are short-term, some are for value, some are for growth, some bet on the change and some bet on the things that won’t. It’s even more captivating to hear the different opinions from the two value investors looking at the same company. So, the key point is not making a comparison with others instead compared you with yourself one or two years ago.

compare

Also, one must keep in mind that to be a good investor he must follow more discipline and try to make less investment decision as possible. That simply means you have to believe in your investment decisions that will do good without your involvement. Not comparing yourself to other investors and their performance is not enough for you; you must not worry about other’s opinion also. If you are a contrarian investor, you should not even listen to and worry about people’s opinion about yourself. If you listen to their opinion, it is because you are having more confidence in them than you have in yourself.

Download our first e-book on Higher education costing in foreign countries.

Here are three key points that can help you in making beneficial results from the investments-

Believe in yourself

If you see yourself as a successful investor in future, you must believe in the rules made by you for you. You must have proper planning and strategies for different investments, and you have to believe in that philosophy and the strategies even during tough times. The thing is if you are not willing to take risks and you do not have courage and patience then you can never be an investor.

Do not make unnecessary investments

It is mandatory to know that every investment is not going to give you positive results, so you do not have to invest in all kinds of opportunities or environment. For example, in 1999 the technology is in boom period but Warren Buffett did not make any investment in it, and people said, ‘that’s it for Buffett, he’s too old now.’ And at that time Warren said that ‘I don’t do tech because I don’t understand it and I think it is not for me. I am going to sit it out.

Have the guts to face the failure

The more you get experience in making investments you will come to know that discipline is a must in investing. Sometimes you have to sit out and watch other investors making money in the exact investments that you have already passed on. It is not necessary to follow the trend and invest in everything; you only have to make investments in the things you really know about and then stick to your process with confidence.

HDFC Life IPO Review and Current GMP

HDFC Standard Life Insurance Company Ltd ( HDFC Life ) (Incorporated in 2000) is life insurance provider in India. HDFC Life offers a wide range of individual and group insurance solutions.

The Company is a joint venture between HDFC and Standard Life Aberdeen plc. Standard Life is an Edinburgh based investment company offering a wide range of financial services across the world. Standard Life is a public company established in 1825.

The Company sells Insurance policies through a multi-channel network, which includes direct sales through own branches, Insurance agents, Partner Banks and through other financial institutions. The company has more than 414 branches and 15,406 full-time employees located across India. It has more than 58,147 individual agents.

HDFC Standard Life Insurance raises Rs 2,322 crore from anchor investors.

List of anchor investors.

Download (PDF, 2.03MB)

IPO Dates & Price Band:

  • IPO Open: 07-November-2017
  • IPO Close: 09-November-2017
  • IPO Size: Approx Rs. 7500 Crore (Approx)
  • Face Value: Rs. 10 Per Equity Share
  • Price Band: Rs. 275 to 290 Per Share
  • Listing on: BSE & NSE
  • Retail Portion: 35%
  • Equity: 29,98,27,818 Shares

Market Lot:

  • Shares: Apply for 50 Shares (Minimum Lot Size)
  • Amount: Rs. 14500

IPO Allotment & Listing:

  • Basis of Allotment: 14-November-2017
  • Refunds: 15-November-2017
  • Credit to demat accounts: 16-November-2017
  • Listing: 17-November-2017

hdfc lifePromoters:

1.Housing Development Finance Corporation Limited (“HDFC”);

2. Standard Life (Mauritius Holdings) 2006 Limited (“Standard Life Mauritius”); and

3. Standard Life Aberdeen plc (“Standard Life Aberdeen”).

The objects of the issue are:

1.To achieve the benefits of listing the Equity Shares on the Stock Exchanges and

2. To carry out the sale of Offered Shares by the Selling Shareholders.

Top 10 Shareholder

SHARE

Lead Managers:

1.CLSA India Private Limited
2. Credit Suisse Securities (India) Private Limited
3. Edelweiss Capital Limited
4. Haitong Securities India Private Limited
5. HDFC Bank Limited
6. IDFC Bank Limited
7. IIFL Holdings Limited
8. Morgan Stanley India Company Pvt Ltd
9. Nomura Financial Advisory And Securities (India) Pvt Ltd
10. UBS Securities India Private Limited

Registrar to the IPO:

Karvy Computershare Private Limited

Life insurance penetration  ( 2016 )

life insurance penetration 2016Competitive Strengths

Strong parentage and a trusted brand that enhances our appeal to consumers

Strong financial performance defined by consistent and profitable growth.

Growing and profitable multi-channel distribution footprint that provides market access across various consumer segments in India.

HOW CAN YOU SETTLE YOUR INSURANCE CLAIM IF REJECTED?

Focus on customer centricity enabling growth across business cycles.

Leading digital platform that provides a superior experience for customers and distributors.

Independent and experienced leadership team.

mshare

market shareStrategies

Reinforce it’s agile,multi-channel distribution platform to fortify and diversify its revenue mix across business cycles.

Drive innovation in product sales to enhance customer value proposition and to capture niche segments.

Invest in digital platforms to establish leadership in the growing digital space.

Continue to build economies of scale to ensure profitability and cost leadership.

asiaNegative

HDFC Life may be unable to implement its growth strategies and develop and distribute an appropriate product mix for specific customer segments through its multiple distribution channels.

Any termination of, or any adverse change to, its relationships with or performance of its bancassurance partners, including HDFC Bank, could have a material adverse impact on its business, profitability, results of operations and financial condition.

Changes in regulation and compliance requirements could have a material adverse effect on its business, financial condition, results of operations and prospects.

Misconduct by its agents, employees, distribution partners or other third parties is difficult to detect and deter and could harm our brand and its reputation, or lead to regulatory sanctions or litigation against us.

Its Company and certain of its Subsidiaries, Directors, Promoters and Group Companies are involved in certain legal proceedings which, if determined against us, may adversely affect its business and financial condition.

HDFC Life’s results are dependent on the strength of its brand and reputation, as well as the brand and reputation of other HDFC group entities.

Variation in its persistency experience from its estimates, as well as concentrated surrenders, may materially and adversely affect its cash flows, results of operations and financial condition.

If actual claims experience and other parameters are different from the assumptions used in pricing its products and setting reserves for its products, could have a material adverse effect on its business, results of operations and financial condition.

HDFC Life depends on its leadership and key management and its actuarial, information technology, investment management, finance, frontline sales staff, underwriting and other personnel, and its business would suffer if we lose their services and are unable to adequately replace them.

SBI Life insurance IPO and Current GMP

Adverse market fluctuations and economic conditions would have a material adverse effect on its business, financial condition, results of operations and prospects.

Failure to secure new distribution relationships, as well as any termination or disruption of its existing distribution relationships, may have a material adverse effect on its competitiveness and result in a material impact on its financial condition and results of operations.

Higher expenses than expected could have a material adverse effect on its business, financial position and results of operations.

There is a risk that customer data could be lost or misused.

In the event that HDFC and/or Standard Life Mauritius reduce the percentage of their respective shareholding in its Company, or the Name Usage Agreement or the Trademark Agreement is terminated, we may not be permitted to use the “HDFC” and/or “Standard Life” trademarks as part of our brand and name for our business.

Catastrophic events, such as natural disasters, which are often unpredictable, may materially and adversely affect its claims experience, investment portfolio, financial condition and results of operations.

total

Valuation

HDFC Standard Life Insurance Company is among the top three life insurers in India by terms of market share in new business premium one of the most profitable life insurers based on the VNB margins, and among the top five private life insurers in India. The overall total premium recorded a CAGR of 14.5% to Rs.19445 crore between FY2015 and FY2017. The VNB margins improved from 18.5% in FY2015 to 22.0% in FY2017 by improvement in cost-efficiencies, increasing persistency ratios and selling a balanced product mix. Profit after tax registered a CAGR of 6.3% to Rs 886.92 crore in FY2017 from FY2015.

The company is valued at Rs 58260 crore at the upper price band of Rs 290 per share. With embedded value (EV) at Rs 14010 crore end September 2017, the scrip is offered at 4.2 times the EV.

Comparison with Peers:

ICICI Pru. Life: PE 33.40, RoNW : 28.70%

SBI Life PE 69.40,RoNW : 18.60%

HDFC Std.Life: PE:65.91 ,RoNW:25.70%

Grey market premium

Current Grey market premium is Rs.11/-

Conclusion

Strnogly avoid.

DISCLAIMER

No financial information whatsoever published anywhere here should be construed as an offer to buy or sell securities, or as advice to do so in any way whatsoever. All matter published here is purely for educational and information purposes only and under no circumstances should be used for making investment decisions. Readers must consult a qualified financial advisor before making any actual investment decisions, based on information published here.

 

Khadim India Limited IPO Review

The  Company is one of the leading footwear brands in India, with a two-pronged focus on retail and distribution of footwear. It is the second largest footwear retailer in India in terms of number of exclusive retail stores operating under the ‘Khadim’s’ brand, with the largest presence in East India and one of the top three players in South India, in fiscal 2016. It also had the largest footwear retail franchisee network in India in fiscal 2016. Its core business objective is ‘Fashion for Everyone,’ and it believes that the Company has established an identity as an ‘affordable fashion’ brand, catering to the entire family for all occasions. As at March 31, 2017, it operated 829 ‘Khadim’s’ branded exclusive retail stores across 23 states and one union territory in India, through its retail business vertical. Further, it had a network of 357 distributors in fiscal 2017, in its distribution business vertical.

Khadim India has allocated shares worth Rs 157.5 crore to 13 anchor investors at the upper end of the Rs 745 – 750 price band set for the IPO.

List of Anchor investor

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IPO Dates & Price Band:

  • IPO Open: 2-November-2017
  • IPO Close: 6-November-2017
  • IPO Size: Approx Rs. 545 Crore (Approx)
  • Face Value: Rs. 10 Per Equity Share
  • Price Band: Rs. 745 to 750 Per Share
  • Listing on: BSE & NSE
  • Retail Portion: 35%
  • Equity: 65,74,093 Shares

Market Lot:

  • Shares: Apply for 20 Shares (Minimum Lot Size)
  • Amount: Rs.15000

Allotment & Listing:

  • Basis of Allotment: 10-November-2017
  • Refunds: 13-November-2017
  • Credit to demat accounts: 13-November-2017
  • Listing: 14-November-2017

Company Promoters:

  • Siddhartha Roy Burman
  • Knightsville Private Limited

Khadim India IPO Registrar:

Link Intime India Private Ltd

 Lead Managers:

  • Axis Bank Limited
  • IDFC Bank Limited

Objects of the Issue:

The Offer comprises a Fresh Issue by the Company and an Offer for Sale by the Selling Shareholders.

The Offer for Sale

The Selling Shareholders will receive the proceeds of the Offer for Sale. The company will not receive any proceeds from this.

The Fresh Issue

The Net Proceeds from the Fresh Issue are proposed to be utilized towards the following objects:

1. Prepayment or scheduled repayment of all or a portion of term loans and working capital facilities availed by the Company; and
2. General corporate purposes.

khadimsindia

Key Strengths

A leading footwear brand, offering affordable fashion across various price segments.

Strong design capabilities to maintain seasonal trends and leading premiumisation through sub-brands.

A two-pronged market strategy that straddles efficiently across retail and distribution models.

Extensive geographical reach and penetration across East and South India.

Asset light model is leading to higher operating leverage.

Experienced Promoters supported by a professionally qualified, experienced and entrepreneurial management team.

KHADDIM2Strategies

Expand its geographical footprint in western India and certain markets in northern India and further penetrate markets in south India

Continue to focus on an asset-light model led growth

Premiumise product offering to increase average selling price and gross margins

Details of Utilisation of Net Proceeds

Pre-payment or scheduled repayment of all or a portion of term loans and working capital facilities availed by its Company.

bankNegative

Khadim is subject to risks associated with expansion into new geographic markets. Any inability to expand into new geographic markets or penetrate existing markets may adversely affect its growth and future prospects.

Any delay or default in payment from its franchisee-operated stores or distributors could adversely impact its profits and affect its cash flows.

Khadim may not be able to obtain sufficient quantities or desired quality of finished products from outsourced vendors in a timely manner or at acceptable prices, which could adversely affect its retail business, financial condition and results of operation.

Khadim rely on its franchisees with respect to its retail business and on its distributors with respect to its distribution business. Any failure to maintain relationships with such third parties could adversely affect its business, results of operations and financial condition.

Khadim’s Directors and Promoters are involved in certain legal proceedings, which, if determined against us could have a material adverse effect on its financial condition, results of operations and its reputation.

Khadim cost of procurement of products from outsourced vendors or cost of manufacture of products using contract manufacturers may increase in the future. Any inability to pass on costs to consumers and distributors, may result in a reduction in its margins.

Khadim’s inability to maintain an optimal level of inventory in its stores may impact its operations adversely.

Failure to successfully procure raw materials or to identify new raw material suppliers could adversely affect us.

If Khadim is unable to maintain and enhance the ‘Khadim’s’ brand, the sales of its products may suffer which would have a material adverse effect on its financial condition and results of operations.

Any inability to increase its market share in premium products may have an adverse effect on its business, financial condition, results of operations and prospects.

Khadim results of operations may be materially adversely affected by its failure to anticipate and respond to changes in fashion trends and consumer preferences in a timely manner.

Khadim depends on third parties for a major portion of its transportation needs. Any disruptions may adversely affect its operations, profitability, reputation and market position.

Khadim’s Promoters will retain a majority shareholding in its Company following the Offer, which will allow them to exercise significant influence over us and may cause us to take actions that are not in the best interest of its other shareholders.

KHADDIM3Valuation 

Net sales increased 16% to Rs 621.25 crore and the operating profit margins were up 80 basis points to 10.6% in FY 2017. Net profit jumped 22% to Rs 30.75 crore. .Net sales (net of discount and taxes) of the retail business rose 14% to Rs 456.49 crore and those of the distribution business by 36% to Rs 134.7 crore.

Net sales stood at Rs 178.43 crore and the OPM at 9.3% in the June 2017 quarter. Net profit stood at Rs 7.10 crore. Net sales (net of discount and taxes) of the retail business stood at Rs 124.9 crore, in line with the growth of existing stores and revenue contributions from 28 new stores and of the distribution business was Rs 48.38 crore, primarily from growth in the distribution base.

At the upper band of Rs 750, P/E works out to 43.8 times EPS of Rs 17.1 (on post-IPO equity) for FY 2017. On a comparable basis, Bata India is trading at a P/E of 57.5 times FY 2017 EPS of Rs 13.5, Liberty Shoes at a P/E of 63.6 times FY 2017 EPS of Rs 3.88 and Relaxo Footwear at a P/E of 51.7 times FY 2017 EPS of Rs 10.24.

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Grey market premium

Currently Grey market premium is Rs.19/-

DISCLAIMER

No financial information whatsoever published anywhere here should be construed as an offer to buy or sell securities, or as advice to do so in any way whatsoever. All matter published here is purely for educational and information purposes only and under no circumstances should be used for making investment decisions. Readers must consult a qualified financial advisor before making any actual investment decisions, based on information published here.

New India Assurance IPO Review and Current GMP

The New India Assurance Co. Ltd  ( NIA )  is in operation for almost a century (Incorporated on July 23, 1919 ) and largest general insurance company in India. The company was nationalized by the GoI on January 1, 1974. The Government of India holds 100% of the pre-Offer paid-up Equity Share capital of the company.

NIA offers insurance in categories including fire insurance; marine insurance, motor insurance, crop insurance, health insurance and other insurance products.

NIA is the market leader in the general insurance industry in India across the segments except for crop insurance.The Company’s distribution network includes 68,389 individual agents and 16 corporate agents, 25 banks, and a large number of OEM and automotive dealer.New India Assurance is rated A-(Excellent) by AM Best Company since 2007 and have been rated AAA/Stable by CRISIL since 2014.

After flop show of GIC, Once again LIC is bid for the NIA’s IPO 

LIC through multiple brokers has placed large bids. The total application size of LIC could be anywhere between Rs 8,500 crore and Rs 9,500 crore.

IPO Dates & Price Band:

  • IPO Open: 1-November-2017
  • IPO Close: 3-November-2017
  • IPO Size: Approx Rs. 10500 Crore (Approx)
  • Face Value: Rs. 5 Per Equity Share
  • Price Band: Rs. 770 to 800 Per Share
  • Listing on: BSE & NSE
  • Retail Portion: 35%
  • Equity: 12,00,00,000 Shares 
  • Discount: Rs. 30 for Retailers & Employees

IPO Market Lot:

  • Shares: Apply for 18 Shares (Minimum Lot Size)
  • Amount: Rs.14400 (For QIB & HNI)
  • Amount: Rs.13860 (For Retailers & Employees)

IPO Allotment & Listing:

  • Basis of Allotment: 08-November-2017
  • Refunds: 09-November-2017
  • Credit to demat accounts: 10-November-2017
  • Listing: 13-November-2017

IPO Registrar:

Link Intime India Private Ltd

Lead Managers:

  • Axis Bank Limited
  • IDFC Bank Limited
  • Kotak Mahindra Capital Company Limited
  • Nomura Financial Advisory And Securities (India) Pvt Ltd
  • YES Bank LimitedNIA FINALThe promoters :

President of India, acting through the MoF

Main  object of the issue is:

Offer for Sale The Company will not receive any proceeds from the Offer for Sale.

Fresh Issue

The Company proposes to utilize the Net Proceeds towards meeting its future capital requirements  & improving its solvency margin and consequently the solvency ratio.

Historical Evolution of General Insurance in India

NIA

Competitive Strengths

Market leadership and established brand

Longstanding global footprint and successful international operations

Customer satisfaction drives sustainable business model

Diversified product offering and product innovation capability

Multi-channel distribution network

Robust financial position

Robust IT infrastructure

Experienced senior management team

Growth drivers for select segments of non – life insurance

NIA 1Low Penetration

Rise in new vehicle sales

Demand for crop insurance

Increasing cost of healthcare

Increasing coverage of insurance in India

NIA 2Supportive regulations

Increase in online retail sales

General Insurance Corporation of India ( GIC ) Review

Business Strategies

Capitalise on significant market potential and increase our market share

Improve underwriting profitability

Leverage technology to drive growth, profitability and customer satisfaction

Continue to focus on product innovation

Expand its international operations

Negative

Any significant variation between actual claim payments from the assumptions and estimates used in the pricing of, and setting reserves for, its various insurance products, may have a material adverse effect on its business, financial condition and results of operations.

Any termination or adverse change in its relationship or arrangements with its agents, brokers, bancassurance partners or other distribution intermediaries, or a decline in their productivity, may have a material adverse effect on its business, financial condition, and results of operations.

NIA may not be able to sustain our historical growth rates or successfully implement its business strategies.

NIA Company, Directors, Subsidiaries and Group Companies are involved in certain legal and other proceedings.

NIA is subject to a comprehensive and evolving regulatory framework in a regulated industry that affects the flexibility of its operations and increases compliance costs.

ICICI Lombard IPO Review and Current Grey market premium

NIA investment portfolio is subject to the volatility in the market value of financial instruments and liquidity risk, which could decrease its value and have a material and adverse effect on its business, prospects, financial condition and results of operations.

Catastrophic events, including natural disasters, may result in significant liabilities for claims by policyholders which could have a material adverse effect on its business, prospects, financial condition and results of operations.

Any actual or alleged misconduct or fraudulent activity or non – compliance with applicable laws by its employees, agents and other distribution intermediaries may lead to customer claims as well as regulatory action against us, which could adversely affect its business, prospects, financial condition and results of operations.

Any actual or alleged misconduct or fraudulent activity or non – compliance with applicable laws by its employees, agents and other distribution intermediaries may lead to customer claims as well as regulatory action against us, which could adversely affect its business, prospects, financial condition and results of operations.

NIA had a deficit in its miscellaneous segment revenue account and negative net cash flows in the past and may continue to have a deficit in its revenue account and negative cash flows in the future.

There are certain risks related to its crop/weather insurance offering that could have a material adverse effect on its business, financial condition, results of operations and prospects.

A significant portion of its business comes from working with the government which subjects us to risks which could result in litigation, penalties, and sanctions including early termination, suspension and removal from the approved panel of insurers.

Retirement Fund : What is a Systematic Withdrawal Plan ( VIDEO )

Valuation

NIA is the largest general insurance company in India, with 15% market share of the domestic gross direct premium. The company is a market leader in all segments except crop insurance for last five straight years. The gross written premium of the company has increased at a CAGR of 15% from Rs 13200 crore in FY2013 to Rs 23230 crore in FY2017. The company has been funding its operations for more than 40 years without any external capital infusion. The company commands a healthy financial position, with a solvency ratio 2.27x end June 2017, compared to the IRDAI prescribed control level requirement of 1.50x. The operating expense ratio of the company was 20.40% in FY2017, the lowest among the top 10 multi-product insurers in India.

NIA’s EPS for FY2017 works out to Rs 10.52. The IPO is offered at P/E multiple 73.2 times FY2017 EPS at the lower price band and 76.1 times FY2017 EPS at the higher price band.

The post issue book value (BV) of NIA is Rs 184.5 end June 2017. P/BV works out to 4.3 times at the upper price band of Rs 800 per share.

The company is the second general insurance company to list on the exchanges, after ICICI Lombard General Insurance Company listed in September 2017. ICICI Lombard General Insurance Company is currently trading at 7.9 times its book value and is available at PE multiple of 36.1 times. The incurred claim ratio of ICICI Lombard General Insurance at 80.64% and the combined ratio at 104.1% for FY2017 is better than New India assurance incurred claim ratio at 92.2% and the combined ratio at 119.7%.

Grey market premium

Currently there is no trade Grey market.

Conclusion

Strongly avoid as like a GIC.

DISCLAIMER

No financial information whatsoever published anywhere here should be construed as an offer to buy or sell securities, or as advice to do so in any way whatsoever. All matter published here is purely for educational and information purposes only and under no circumstances should be used for making investment decisions. Readers must consult a qualified financial advisor before making any actual investment decisions, based on information published here.

Mahindra Logistics IPO Review and current GMP

Mahindra Logistics Limited (Incorporated in 2008 ) is end-to-end logistics solution and service provider. Mahindra Logistics is part of Mahindra Group (M&M), one of India’s leading groups with business spanning across several industries and countries. Before 2008, the logistics activities of M&M was operated as a division of M&M.

The logistics business of the company includes transportation and distribution, warehousing, in-factory logistics and value-added services to M&M and other more than 120 clients which provides for domestic and multinational companies operating in the IT, ITeS, business process outsourcing, financial services, consulting and manufacturing industries in 12 cities.

Its subsidiary, 2X2 Logistics, provides logistics and transportation services to OEMs to carry finished automobiles from the manufacturing locations to stockyards or directly to the distributors through specially designed vehicles.Other subsidiaries, Lords, provides international freight forwarding services for exports and imports, customs brokerage operations.

List of Anchor Investors

Mahindra Logistics has allotted 57.62 lakh equity shares at Rs 429 per share to 15 anchor investors, aggregating to Rs 247.2 crore, ahead of its initial public offering ( IPO ). Six mutual funds have applied for the issue through a total of 10 schemes.

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The promoters :

Mahindra & Mahindra Limited.

The main object of the issue is:

To achieve the benefits of listing the Equity Shares on the Stock Exchanges.

Lead Managers:

Axis Bank Limited
Kotak Mahindra Capital Company Limited

Registrar to the IPO:

Link Intime India Private Ltd,
Phone of the Registrar:+91-22-25963838

Registered Office of the Company :

Mahindra Logistics Limited

 IPO Dates & Price Band:

  • IPO Open: 31-October-2017
  • IPO Close: 02-November-2017
  • IPO Size: Approx Rs. 701 Crore (Approx)
  • Face Value: Rs. 10 Per Equity Share
  • Price Band: Rs. 425 to 429 Per Share
  • Listing on: BSE & NSE
  • Retail Portion: 35%
  • Equity: 1,93,32,346 Shares

Market Lot:

  • Shares: Apply for 34 Shares (Minimum Lot Size)
  • Amount: Rs. 14,586

Allotment & Listing:

  • Basis of Allotment: 8-November
  • Refunds: 9-November
  • Credit to demat accounts: 9-November
  • Listing: 10-November

Mahindra Logistics

BUSINESS STRATEGY

Continue to grow share of its business from non-Mahindra Group clients.

Focus on large revenue clients by providing integrated, end-to-end solutions and continue to provide additional services to existing clients.

Continue to diversify its revenues from industry verticals such as consumer goods, pharmaceuticals, e-commerce, and bulk.

Continue to focus on enhancements in technology.

Leveraging on the changing logistics industry dynamics, particularly with the implementation of the GST regime.

Continue to establish new multi-user warehouses.

Continue to explore new business opportunities in new industry verticals and business segments.

Qualitative factors

Some of the qualitative factors which form the basis for computing the Offer Price are:

  1. An“asset-light” business model which allows flexibility and scalability in operations and high capital efficiency;
  2. Customized, technology-driven logistics solutions;
  3. Integrated, end-to-end logistics services and solutions;
  4. The Mahindra brand and support from the Mahindra Group;
  5. Presence across diverse industry verticals with long-standing client relationships; and
  6. Experienced management team with strong domain expertise.
Below is a graphical representation of its SCM services as well as its integrated, end-to-end solutions.
INTEGRTED LOGISTIC SOLUTION

Salient trends in the Indian logistics industry

Indian logistics industry to grow at a CAGR of approximately 13.0% to ₹ 9.2 trillion in Fiscal 2020.

The Indian Government’s increased focus on infrastructure.

Integrated network development will promote use of multi-modal transportation.

A simplified tax regime to lower costs and provide an opportunity for outsourcing.

GST implementation to provide an opportunity for organized service providers.

3PL service providers: One stop shop for logistics end-users.

The future trend in the 3PL industry is an asset-light model.

A 3PL market in India to grow at a CAGR of 19-21% by Fiscal 2020.

PTS industry to reach a market size of ₹ 85 – 95 billion in Fiscal 2020.

Freight forwarding market to increase at a CAGR of 8-9%.

Road freight to continue to occupy a significant share.

Dixon Technologies IPO – Review

Key drivers for growth of 3PL service providers in India

GST implementation to drive 3PL growth.

Focus on core business results in increased outsourcing trend.

Increased flexibility and scalability.

Offer value added services.

Increasing global presence in India to further 3PL growth.

Large, organized 3PL service providers to enjoy a distinctive edge over smaller, unorganized service providers.

Negative

Mahindra Logistics depend significantly on clients in the automotive industry and are highly dependent on the performance of the automotive industry.

A loss of, or a significant decrease in business from clients in the automotive industry could adversely affect its business and profitability.

Mahindra Logistics depend on a limited number of clients, which exposes us to a high risk of client concentration. Fluctuations in the performance of the industries in which its clients operate may result in a loss of clients, a decrease in the volume of work we undertake or the price at which we offer its services.

Mahindra Logistics business and operations depend significantly on its parent and Promoter, Mahindra & Mahindra Limited and the other Mahindra Group entities.

MAS Financial Services IPO Review and GMP

Mahindra Logistics operate in a highly fragmented and competitive industry and increased competition may lead to a reduction in its revenues, reduced profit margins or a loss of market share.

Mahindra Logistics may not be able to manage the growth of its business effectively or continue to grow its business at a rate similar to what we have experienced in the past.

Mahindra Logistics business is highly dependent on technology and any disruption or failure of its technology systems may affect its operations.

Difficulties and uncertainties surrounding the implementation of a GST regime in India may adversely affect its business strategy.

Mahindra Logistics are susceptible to risks relating to compliance with labor laws.

Mahindra Logistics, its Directors, its Promoter and its Group Companies are involved in certain legal proceedings, which if determined unfavorably, may adversely affect its reputation, business, financial condition and results of operations.

Mahindra Logistics may face claims relating to loss or damage to cargo, personal injury claims or other operating risks that are not adequately insured.

Mahindra Logistics experienced negative cash flows from its operating activities, investment activities as well as financing activities.

Mahindra Logistics, its Subsidiaries, its Promoter and some of its Group Companies have availed of debt facilities that can be recalled by lenders at any time.

Loss making Group Companies

LOSS

Financial

  • Mahindra Logistics net worth stood at Rs 363 crore for the quarter ended June, translating into a book value of Rs 51/- share.
  • Revenue clocked a compounded annual growth rate of 15 percent, and net profit rose to 17 percent in five years to March.
  • Revenue and net profit for the quarter ended June stood at Rs 852 crore and Rs 15 crore, respectively.
  • Earnings before interest and tax margin have been close to 2 percent as it follows an asset-light business model.
  • The company has not declared any dividend in the last five financial years.

Valuations

At the upper end of the price band, earnings per share for the year to March stood at Rs 6.4 and the price-earnings ( P/ E ) ratio at 67 times.

 Grey market premium
 Grey market premium is  38/- to 39/-, Kostak is Rs.350/-
Conclusion

Investors may consider for medium to long term.

DISCLAIMER

No financial information whatsoever published anywhere here should be construed as an offer to buy or sell securities, or as advice to do so in any way whatsoever. All matter published here is purely for educational and information purposes only and under no circumstances should be used for making investment decisions. Readers must consult a qualified financial advisor before making any actual investment decisions, based on information published here.