Swastika News

According to RBI, Indian banks’ bad loans could rise sharply by September, the highest in more than 22 years, creating a risk to the broader economy. The gross bad loans on bank balance sheets could rise to 14.8% as compared with the previous year which was 7.5% in September 2019.

In the worst-case scenario, the gross bad loans could rise to 14.8% - by the end of the second quarter of FY 2021-2022.

As per the assessment done by RBI, gross NPA has been consistently decreasing over the last two years, with the number at 7.5% in July-September 2020.

Under the worst stress scenario, RBI has marked a 7.6% contraction in the six months to March 31. As per the stress test conducted for the banks, the regulators observe three scenarios for the gross domestic product growth where 0% growth is counted as a baseline scenario, -2.1% as medium stress, and -7.6% as large stress.

The stress test was introduced by RBI in order to assure the bank's asset quality. Such tests tell the economic impairment latent in bank portfolios, with an aim for capital planning.

Among the large sectors, whether it is an industry, agriculture, asset quality has been improved noticeably, in September 2020 over March 2020, with a decline in gross NPA and stressed advance ratios.

Amongst the top 100 borrowers, the asset quality trends have been positive for the banking system. However, because of the moratorium on repayments that ended on 31 August, the standstill on asset classification and restructuring of loan accounts, the data on fresh loan impairments reported by banks may not reflect the true state of assets.

Shaktikanta Das, the governor of India, reiterated that the banks can face balance sheet impairment and capital shortfall once regulatory reliefs are rolled back. Further, he also said that liquidity and financing conditions have helped banks to improve their performance to a greater extent.

Earlier, RBI’s stress testing models have been criticized by numerous experts. Soumya Kanti Ghosh, chief economic advisor, State Bank of India mentioned that RBI’s stress testing methods could have a significant upward bias.

RBI’s stress testing models came with several disclaimers considering the uncertainty regarding the unfolded economic outlook and the extent debt recast benefits, the ratios are very sensitive to change.

RBI had allowed banks to reallocate loans for borrowers whose cash flow has been badly affected by Covid and allowed such loans to be relaxed despite their repayment norms being relaxed.

Implications of Capital Adequacy

The capital adequacy ratio is expected to drop from 15.6% in September 2020, to 14% in September 2021 under the baseline scenario and to 12.5% under the several scenarios, the RBI said.

The stress test results indicate four banks may fail to catch up the minimum capital level by September 2021, under the baseline scenario, without factoring in any capital infusion by stakeholders.

It is expected that the common equity tier I of scheduled banks may be reduced from 12.4% to 10.8 % under the baseline scenario.

To sum up .. the banking system’s capital base may be able to withstand the stress coming from the COVID 19 pandemic, some individual banks are required to support through phase-wise capital infusion, the RBI said.

We have noticed many regulatory changes in the mutual fund industry in the upcoming year, which is about to end soon. In an attempt to make mutual funds more transparent for traders and investors, SEBI came up with some changes which will remain applicable in the new year 2021.

Here is a list of changes that will come into effect in Jan 2021.

1. Changes in portfolio allocation rules for multi-cap funds:

SEBI announced portfolio allocation rules for multi-cap mutual fund schemes. As per the new rules made by SEBI, a mutual fund scheme will have to invest at least 75% in equities and equity-related investments. In addition to this, the schemes will have to invest in a minimum of 25% each in small-cap, mid-cap and large-cap stocks. At present, there is no such restriction allocation and therefore fund managers are allowed to invest in the mid-cap as per their own choice.

All mutual fund houses were given time till 31 January 2021, to comply with the fresh rules, within the one month from the date of publishing the next lists of stocks by AMFI. Following concern in the industry, the SEBI later introduced a new mutual fund category called flex cap fund, which is required to invest at 65% of the corpus in equity without any restrictions on investing in small-cap, mid-cap or large-cap funds. Some AMCs have already reclassified their multi-cap schemes as Flexi cap category to avoid any portfolio changes.

2. Changes in NAV Calculation

From January 1, 2021, mutual fund investors will get the purchase NAV of the day, when investors’ money reaches the AMC, irrespective of the size of investments. This NAV rule will be applicable only for those funds which are available for utilization irrespective of the name and size of the application.

Under the prevailing rules, the NAV of the date of purchase is considered for the purchase of less than Rs 2 lakh, even if the money does not reach the AMC, but the order is placed within the cut off time.

3. Inter Scheme Transfer of Securities

According to the sources, inter scheme transfer (IST) of debt papers can only be done within 3 business days of the allotment of the schemes’ units and after three business days, such transfer will not be allowed. Under prevailing rules, SEBI only requires that such IST be done at the market prices.

From January 1, 2021, inter scheme transfer in closed-ended funds can be done within 3 business days as the scheme transfers involve shifting of debt papers from one mutual fund scheme to another.

Moreover, SEBI also specified that such ISTs be done only at the market places and no ISTs shall be allowed if there is any negative market news or rumours in the mainstream media.

4. Renaming the dividend option

From April 1, 2021, mutual fund schemes comprising all the dividend schemes will be renamed as income distribution cum capital withdrawal options.

5.New Riskometer Tool

SEBI introduces a new category of mutual fund schemes on its riskometer tool for investors to make better decisions with high-risk mutual funds. Earlier, the model was simply based on the risk of the category without considering its actual portfolio. The new riskometer shall be evaluated every month and all schemes will be labelled for risks and funds.

Additional Measures Under Consideration

SEBI is considering additional measures which are expected to be implemented with the mutual fund industry. Here are some of them:

• It is mandatory to maintain a minimum 10% exposure in liquid assets such as government securities, treasury bills, and cash in hand.
• Gating of redemption during extreme events to prevent any pressure on the fund.
• Do assessment whether the side pocket creation norms need to be revised.
• Stress testing for all open-ended debt oriented mutual fund schemes will raise early warning signs and enable AMCs to take necessary actions.
• Encourage repo in corporate bonds to raise liquidity in the secondary market and to enable greater issuance of paper rated below AAA.

Stove Kraft was originally incorporated in 1999. They are primarily involved in the manufacture of kitchen appliances, equipment and utensils. Stove Kraft is a kitchen solution and an emerging home solutions brand. Further, it is one of the leading brands for kitchen appliances in India and is one of the dominant players for pressure cookers and a market leader in the sale of free-standing hobs and cooktops.

Stove Kraft is engaged in the manufacture and retail of a wide and diverse suite of kitchen solutions under its Pigeon and Gilma brands and proposes to commence manufacturing of kitchen solutions under the BLACK + DECKER brand, covering the entire range of value, semi-premium and premium kitchen solutions, respectively.

Its kitchen solutions comprise of cookware and cooking appliances across its brands, and its home solutions comprise various household utilities, including consumer lighting, which not only enables it to be a one-stop-shop for kitchen and home solutions but also offer products at different pricing points to meet diverse customer requirements and aspirations.

The company has a strong distribution network as under the "Pigeon" brand, it has 651 distributors in 27 states and 5 union territories and 12 distributors for exports and under the "Gilima" brand, it has 65 stores across 4 states and 28 cities.

It not just distribute its products in the Indian market but also exports them to countries like the USA, Mexico, Kenya, Qatar, Sri Lanka, Fiji, Bahrain, Kuwait, etc. Stove Kraft has manufacturing facilities at Bengaluru (Karnataka) and Baddi (Himachal Pradesh).

All Pigeon and Gilima branded appliances are manufactured at its Bengaluru unit and the Baddi facility focuses on the Oil Company Business (OCB) to manufacture products like LPG stoves, inner lid cookers, etc.

Products and Brands:

Stove Krafts products are sold under three brands, viz. Pigeon, Gilma and BLACK + DECKER to cater to the value, semi-premium and premium customer segments, respectively. Set out below is a brief overview of the class of products retailed under each of the brands:

Pigeon:

Pigeon, which is value for money brand, offers a wide array of products under various sub-categories. Set out below is an overview of the products currently offered by us under the Pigeon brand:

Some of the marquee innovative products, such as the Super Cooker, Infinity glass cooktops and Super Storm Advanced mixer grinder, are sold under the Pigeon brand. The Pigeon ‘super cooker’ is an innovative offering which provides the functionalities of straining, serving, induction cooking compatibility and non-stick, energy-efficient cooking in a single product.

Gilma:

Gilma brand, which focuses on the semi-premium customer segment, is sold exclusively through Gilma branded stores which are designed to offer the customer a modular kitchen experience. Currently, the Gilma portfolio comprises of chimneys, hobs and cooktops across price ranges and design offerings. We believe that our Gilma products combine premium design with effective performance, offered at a competitive price. While Gilma chimneys come built with higher suction power and a lifetime warranty, the hobs offer features such as anti-rust stainless steel body, energy efficiency and one-touch auto-ignition. Similarly, Gilma LPG stoves are designed keeping in mind thermal efficiency, durability and portability. Gilma LPG stoves use toughened glass and brass burners and come with a two-year warranty.

BLACK + DECKER

BLACK + DECKER is a renowned name internationally in the field of, inter alia, kitchen appliances. Presently, we offer the following products under the BLACK + DECKER brand, aimed at the premium segment of customers:

IPO Details:

Subscription Dates25 – 28 January 2021Price BandINR 384 – INR 385Fresh issueINR 95 croresOffer For SaleINR 317.63 croresTotal IPO sizeINR 412.63Minimum bid (lot size)38 SharesFace Value INR 10 per shareRetail Allocation10%Listing OnNSE, BSE

Strengths of the Company:

• A one-stop-shop for a well-recognized, award-winning portfolio of kitchen solutions brands with a diverse range of products across consumer preference
• Widespread, well-connected distribution network with a presence across multiple retail channels and a dedicated after-sales network
• Strong manufacturing capability with efficient backward integration;
• Consistent focus on quality and innovation
• Professional management with a successful track record and extensive experience in the kitchen solutions industry, and a young and dynamic workforce
• Strong track record and financial stability

IPO Objective:

• To make the repayment or prepayment payment of the company's borrowings fully or partially
• To meet general corporate purposes.

Financial Performance:

Financial performance (in INR crore)FY2018FY2019FY2020H1 FY2021Revenue534.6642.6672.9329.5Expenses547.1641.4669.4300.7Net income-11.70.92.930.1Margin (%)-2.20.10.49.1

IPO Tentative Time Table

21 Jan 2020: Price Band announced

22 Jan 2020: Anchor List

25 Jan 2021: Offer Opens

28 Jan 2021: Offer Closes

3 Feb 2021: Finalization of Basis of Allotment

3 Feb 2021: Unblocking of ASBA“

4 Dec 2020: Credit to Demat Accounts

5 Feb 2021: Listing on NSE & BSE

Risks:

• Expenses on raw materials increase or the cost of production rises for any other reason, the company will not be able to break even.
• There are unresolved legal issues with regard to certain land parcels which fall inside the factory space.
• There are several outstanding cases — both criminal and civil — against the company and the Stove Kraft Limited owner, Rajendra Gandhi.

Outlook:

Eyeing the brand reorganization and their focus on the innovation of products to meet the needs of the customer we expect that the fundamental of the company will boost up. The company's revenue from operations stood at Rs 328.8 crore in the April-September 2020 period, up from 4.2 percent from the year earlier. Its net profit jumped to Rs 28.8 crore in the same period, against Rs 4.4 crore a year ago. Stove Kraft IPO is priced at 34.5x PE on a trailing basis while the PE of the industry is 46x. We assign a "Subscribe" rating only for listing gain.

Home First Finance Corporation was founded in 2010 based in Mumbai. The company is an affordable housing finance company. The company offers home loans to lower and middle class to buy homes. They also offer loans against property, developer finance to buy commercial properties as well.

The company has a diverse lead generation source channel including connectors, contractors, architects, affordable housing developers, and others. As on Sep 30, 2019, the business has a strong branch network of 65 branches across 60 districts in 11 different states and a union territory in India with a key presence in markets such as Maharashtra, Karnataka, Tamil Nadu, and Gujarat.

It offers quick and transparent loan transactions through its mobile app. As on Sep 30, 2019, it has serviced a total of 37,086 active loans. Its Gross Loan Assets have grown at a CAGR of 69.8% between FY2017 and FY2019 and increased from INR8,473.16 million as of 31 March 2017 to INR31,133.76 million as of 30 September 2019.

Strengths of the Company:

1) Technology-driven affordable housing company.

2) Strong penetration in the largest housing finance market.

3) Diversified lead source channel.

4) Sound fundamentals.

IPO Objective:

1) To augment a company's capital base to meet future capital requirements.

2) Listing benefits.

IPO Details:

Home First Finance IPO details

Subscription Dates

‍21 – 25 January 2021

‍Price Band

‍INR517 – 518 per share

‍Fresh issue

‍INR265 crore

‍Offer For Sale

‍INR888.72 crore

‍Total IPO size

‍INR1,153.72 crore

‍Minimum bid (lot size)

‍28 shares

‍Face Value

‍INR 2 per share

‍Retail Allocation

‍35%

‍Listing On

‍NSE, BSE

Tentative Timetable

19th Jan – Announcement of Price Band

20th Jan – Anchor Investors Allotment

21st Jan – Offer Opens

25th Jan – Offer Closes

29th Jan – Finalization of Basis of Allotment

01st Feb – Unblocking of ASBA Accounts

02nd Feb – Credit of Equity Shares to Depository Accounts

03rd Feb – Commencement of Trading

Financial Performance:

Home First Finance’s financial performance (in INR crore)

FY2018FY2019FY2020H1 FY2021Revenue134.2270.9419.7243.2Expenses110.0205.7312.4172.8Net income16.045.179.152.8Net margin (%)11.916.618.821.7

Outlook:

AUM of the company Stands around Rs 3700 cr while the net worth of the company is Rs. 988 cr.  For the six months ended September 30, 2020 and the financial year 2020, it sanctioned 2,591 and 15,591 loans on account of leads generated through 887 and 2,553 connectors, respectively. At the upper price band of Rs 518, the issue is priced at a 4.1x P/BV ratio. The RoE and RoA of HFFC is 11% and 2.94% respectively.

Revenue of the company is increasing YoY with a strong strong increase of 150% in total assets. The profit of HFFC increased by 70% CAGR since 2018 with an increase in profit margins. Eying the growth in real estate, NBFC-Housing companies are expected to have a strong boost. We assign a "Subscribe" rating for listing gain and long term.

National Commodity & Derivatives Exchange Limited (NCDEX) will relaunch the Steel Futures contract on Monday, January 18, 2021, a release issued by the exchange said on Thursday.

Initially, contracts will be available for the months expiring in February 2021, March 2021 and April 2021. With this launch, the first in this year, NCDEX has re-entered the Non-Agri space expanding the bouquet of derivative products.

OVERVIEW:

India is the 2nd largest steel producer in the world and it mainly caters to the Infrastructure and Construction industry. The major steel-producing states in India are Punjab, Chattisgarh, West Bengal, UP, Orissa and Gujarat.

The steel industry is the heart of global development. It is considered crucial for the development of the economy and is considered the backbone of human civilization.

The importance of steel to the economy can be further verified by the fact that level of per capita consumption of Steel is treated as an important index to measure the level of socioeconomic development and living standard of the people of a country. All major economies around the world have been largely shaped by the strength of their steel industry in their initial years of development.

KEY BENEFITS:

• Benchmark Futures contract for Steel Long
• Hedging and price risk management tool for value chain
• Efficient and transparent price discovery
• Robust delivery mechanism
• Connects the entire value chain

Commenting on the launch, Vijay Kumar, MD & CEO, NCDEX, stated, “India is on the cusp of exponential growth in infrastructure sector due to government impetus on making the country a $5-trillion economy in the coming years. As a result, the consumption of steel is likely to take a quantum leap ahead.

As the price of steel is a major component of total cost in many infra-projects, developers find it difficult to manage the volatility in steel prices in absence of an appropriate hedging platform in the country. The steel contract being launched by us will provide these entities with a reliable and transparent risk management tool to hedge against volatile prices.”

Mr Kapil Dev, EVP & Head of Business & Products, NCDEX stated, “India’s steel consumption is probably going to develop at a lot sooner tempo as over Rs. 44 lakh crore value of initiatives is already being applied out of Rs. 111-lakh-crore National Infrastructure Pipeline (NIP).

Even the home manufacturing and exports are additionally on the rise at a brisk tempo. On the opposite hand, logistical and provide inefficiencies have made steel and its uncooked materials cost extraordinarily unstable posing challenges to the complete worth chain individuals. Because of this, having a steel futures contract at this level of time has an amazing utility for producers in addition to customers to handle their value dangers.’’

CONTRACT SPECIFICATIONS:

• Ticker symbol - STEEL
• Trading Unit – 10 MT
• Delivery Unit - 10 MT
• Maximum Order Size - 500 MT
• Tick Size – Rs.10 (per MT)
• Hours of Trading- Mondays through Fridays: 9:00 A.M. to 9:00 P.M.
• Quantity Variation - +/- 3% or 5MT (whichever is higher)
• Minimum Initial Margin- 8%
• Delivery Center - Mandi Gobindgarh, Ghaziabad (Uttar Pradesh)
• Delivery Logic - Compulsory Delivery
• Delivery Specification - Upon expiry of the contracts all the outstanding open positions shall result in compulsory delivery.
• Due date/ Expiry Date 20th day of the delivery month - If 20th happens to be a holiday, a Saturday or a Sunday, then the expiry date (or due date) shall be the immediately preceding trading day of the Exchange, which is other than a Saturday.

Indian Railway Finance Corporation known as IRFC is a finance arm of the Indian Railways. Incorporated in 1986, Indian Railway Finance Corporation (IRFC) is a public-sector enterprise that is wholly-owned by the Government of India.

The company is registered with the RBI as a systemically important NBFC and is classified under the category of an “Infrastructure Finance Company”. Its primary business is financing the acquisition of rolling stock assets, which includes both powered and unpowered vehicles, for example, locomotives, coaches, wagons, trucks, flats, electric multiple units, containers, cranes, trollies of all kinds and other items of rolling stock components as enumerated in the Standard Lease Agreement (collectively, “Rolling Stock Assets”), leasing of railway infrastructure assets and national projects of the Government of India (collectively, “Project Assets'') and lending to other entities under the Ministry of Railways, Government of India (“MoR”).

It follows a financial leasing model to finance rolling stock assets procurement for a lease period of 30 years. The key thing to note is in the last 30 years IRFC has zero NPA. In fiscal 2019, the actual capital expenditures by the Indian Railways were Rs. 1,334 billion, out of which, IRFC financed Rs. 525.35 bn accounting for 39.34% expenditures.

Strengths of the Company:

1. Plays Strategic role in financing the growth of Indian Railways.
2. The cost of borrowings is comparatively low based on strong credit ratings in India and diversified sources of funding.
3. Financial performance is a consistent and cost-plus model.
4. Low-risk business model.
5. Strong asset-liability management.
6. Experienced senior management and committed team.

IRFC IPO is a main-board IPO of 1,782,069,000 equity shares of the face value of ₹10 aggregating up to ₹4,633.38 Crores of which Fresh Issue 11,88,04,60,000 Shares Equity Shares, aggregating up to Rs 3088.92 Crore Offer for Sale comprises: Up to 59,40,23,000 Equity Shares, aggregating up to Rs 1546.44 crore. The issue is priced at ₹25 to ₹26 per equity share.

The minimum order quantity is 575 Shares. The IPO opens on Jan 18, 2021, and closes on Jan 20, 2021. The shares are proposed to be listed on BSE, NSE.

IPO Objective:

• Offer for Sale: The Company will not receive any proceeds from the Offer for Sale.
• Fresh Issue: Net Proceeds from the Fresh Issue are proposed to be utilized in augmenting the company’s equity capital base to meet business future growth requirements.

Financial Performance:

FY2018FY2019FY2020H1 FY2021Revenue9,207.8010,987.4013,421.107,384.80Expenses6,675.908,232.0010,229.005,498.00Net income2,002.302,140.103,191.501,887.30Margin (%)21.719.523.825.6

Tentative Time Table:

• 13th Jan: Announcement of Price Band
• 12th Jan: Anchor Investors Allotment
• 18th Jan: Offer Opens
• 20th Jan: Offer Closes
• 27th Jan: Finalization of Basis of Allotment
• 27th Jan: Unblocking of ASBA Accounts
• 28nd Jan: Credit of Equity Shares to Depository Accounts
• 29th Jan: Commencement of Trading

Outlook:

The market cap @26/share on listing day will be around 33000 crores and it is going to enter the top 100 large-cap company list. IRFC operates on a unique business model, quite contrasting to REC/PFC. Whatever price they borrow from the market, while financing to MoR, they provide it with a 40 basis point margin.

For railway companies, the margin is 150 basis points. Eyeing the budget it is expected that IRFC may get further orders from the railways as the government is planning to run 150 private trains. However, if the government doesn't fix IRFC as the only NBFC for Railways, IRFC may lose its monopoly. We recommend a "Subscribe" rating only for the long term.

To achieve high returns over a short period, many investors prefer to do trading over other investing strategies as it helps them to get maximum investment benefits. There is a lot of trading experience and guidance is required to achieve a high return and hence most investors prefer to take a stock broker’s advice before investing in any stock.

To trade successfully in equity trading, it is compulsory to open a trading account with any stockbroking firm. Well, when it comes to the top stockbrokers who offer subsequently low brokerage rates with quality advisory services, then Swastika comes second to none. Swastika not only provides regular follow up calls but also quality customer services that leave the user satisfied.

If you are a newbie who often gets confused with trading terminologies, you come to the right place. Swastika’s learning courses will help you to get a deep insight into stock’s and their investment methods.

Let's understand what an Equity Trading Account is and how we successfully create Demat accounts.

What is an Equity Trading Account?

Equity trading accounts are required to trade any financial securities. This account involves purchasing and selling of shares within a single account, which is known as Demat account or dematerialized account.

Equity trading account opening involves signing up for trading and Demat accounts. Both the accounts can be interlinked to your savings account for the transferring of funds.

Trading Account

A trading account lets you successfully trade in the Indian stock market. After opening a Demat account and trading account, you will get a unique identification number (UID).

Demat Account

A Demat account enables you to buy/sell and hold financial securities that too in a dematerialized form. Earlier, shares used to trade physically, however with the arrival of the Demat account, many problems have been resolved.

Benefits of Opening an Equity Trading Account

There are bountiful benefits of opening an Equity Trading Account:

Accessibility:

Accessibility is such an important concept here and therefore it is suggested to go for an equity trading account that has accessibility to all the stock exchanges across the country.

Seamless Transactions:

Imagine you are in the middle of trading and often face multiple transaction issues such as transferring amounts. It not only creates hurdles in your transactions but also decreases the mode of trading.

How to Open an Equity Account With Swastika

Step 1:

You are required to choose a DP for your account.

Step 2:

The next step is to fill the account opening form for Demat and trading accounts.

Step 3:

Photo Id proof is required such as PAN card/ Voter ID card/ Passport.

Step 4:

Financial proof is required such as ITR acknowledgment, a copy of annual accounts and more.

Step 5:

Once you cleared all the above steps, you will receive Demat and Trading Accounts.

Conclusion:

Stock trading is something that provides you with high returns too with a short period. Although there are multiple financial securities investors can invest their amount such as government bonds, debts, certificates of deposits. These securities give less return as compared to the stock market.

With Swastika’s equity trading account, you can seamlessly perform stock market operations. Swastika’s trading tips and recommendations will also help you to get the best stocks to invest in.

The National Stock Exchange and Bombay Stock Exchange are open on the weekdays from Monday to Friday and are closed on Saturday and Sunday. Here is the complete list of all trading holidays for NSE and BSE.

HolidaysDay DateRepublic Day Tuesday26 January 2021Mahashivratri Thursday11 March, 2021HoliMonday29 March, 2021Good FridayFriday02 April, 2021Dr. Babasaheb Ambedkar JayantiWednesday14 April, 2021Ram NavamiWednesday21 April, 2021Eid-Ul-Fitr (Ramzan Id)Thursday13 May, 2021Bakri IdWednesday21 July, 2021Muharram Thursday19 August, 2021Ganesh Chaturthi Friday10 September, 2021DussehraFriday15 October, 2021Diwali * Laxmi PoojaThursday04 November, 2021Diwali BalipratipadaFriday05 November, 2021Guru Nanak JayantiFriday19 November, 2021

For BSE India, Muhurat Trading shall be held on 04 November 2021 (Diwali - Laxmi Pujan). The time of Muhurat Trading shall be notified subsequently. The exchange may change any of the above holidays, for which a separate circular shall be issued in advance.

Holidays For Commodity Trading - MCX (tentative)

Holidays DayDateMorning SessionEvening SessionNew Year DayFriday01 January, 2021OpenClosedMahashivratriThursday11 March, 2021ClosedOpenHoliMonday29 March, 2021ClosedOpenGood FridayFriday02 April, 2021ClosedClosedDr. Babasaheb Ambedkar Jayanti Wednesday14 April, 2021ClosedOpenRam NavamiWednesday21 April, 2021ClosedOpenEid-Ul-Fitr (Ramzan Id)Thursday 25 May, 2021ClosedOpenDiwali - Laxmi PujaThursday04 November 2021ClosedOpenDiwali - BalipratipadaMonday05 November, 2021ClosedOpenGuru Nanak JayantiMonday30 November, 2021ClosedOpen

Holidays That Are Falling on Saturdays/Sundays

HolidaysDayDateMahavir JayantiSunday25 April, 2021Maharashtra DaySaturday01 May, 2021Independence DaySunday15 August, 2021Mahatma Gandhi JayantiSaturday02 October, 2021ChristmasSunday25 December, 2021

The list of National Stock Exchange (NSE) and Bombay Stock Exchange (BSE) for 2021 includes all the national holidays and regional public holidays. The above information is important for those willing to trade financial instruments through the stock exchange.

NSE and BSE have five working days a week i.e Monday to Friday. However, During Muhurat Trading (if Diwali falls on a weekend), certain platforms can remain open for a specific period of time.

Swastika Investmart is known for its analysis and proficiency in identifying the right company valuation and help startups and SMEs to go public with the right company valuation. With the state of the art methodologies and 29 years of unmatched market expertise in business valuation services, Swastika helps the associated patrons, stakeholders, promoters and potential investors in getting the best company valuation when businesses are struggling to perform, thereby providing a fair business valuation to the company and thereby strengthening investor’s confidence.

Swastika’s company valuation pedagogy includes:

Strengthening the company’s valuation

Providing Financial advice for SMEs

Merchant Loan Syndication

Apart from that, Swastika has successfully launched various IPO’s including Sharika enterprises, Zodiac energy limited, Innovana Thinklabs ltd and more.

Top Reasons Why Companies Issues IPO

Whenever a company decides to grow, it realizes IPO to raise its capital. With raising capital, they may be able to purchase additional property, equipment, R&D.

Besides, they can generate new potential customers who are ready to invest in their company. Swastika’s IPO valuation services will give you a clear picture of the IPO.

For instance, the company assists you in selecting the right IPO valuation methods, how the value of IPO share prices are determined in the stock market, Pre IPO valuation and more.

Need for Business Valuation

Business valuation is the dire need of any business, whether it is small, medium or large. Without having a proper assessment, you can't determine the value of a business.

It is recommended that every business owner should have its company valuation as it allows you to get a real understanding of your company. It can be performed with the help of asset’s values, a company’s cash flows.

Measuring the business valuation of a company can tell you about the present growth of your company.

Swastika’s business value services give you complete support regarding business valuation services. It will give you a clear assessment of your company’s value. Besides, you can plan your business growth in future as well.

The Purpose of Company Valuation

One of the main purposes of company valuation is to sell the product of the business and increase its brand awareness. Other purposes are negotiation and improving business performance, assisting founders in evaluating companies.

At Swastika, you will get quality business valuation services at minimum prices. Besides, you will get a complete analysis of company valuation along with the past and present reports.

A detailed analysis will help you get a thorough knowledge of business valuation with the valuation of capital investments, the value of capitalization, the value of capital investments and more.

Investment Valuation for a Company

Valuation of a business is the first step in securing capital. If you are borrowing a good amount of capital for your business, the lender, on the other hand, definitely wants to know about the existing leverages in your company. With the aid of Swastika’s company valuation services, you will get genuine tips regarding company valuation, capital investments and securing capital for your business.

Benefits of obtaining a Company Valuation

1. A better understanding of a company’s assets

For a business owner, it is important to find out the detailed assessment of the business assets because, with financial figures, you will get a clear understanding of how much you can reinvest into the company.

2. Obtaining accurate company value

Obtaining a company value is important because it helps you to know about the preservation of money, growth, the future value of the business, and future development of businesses.

Conclusion

Company valuation is important for any business as it helps to determine the company’s financial worth. Other benefits of assessing a company's valuation include market capitalization, fundraise, analysis of asset’s value, reverse cash flows and more.

Crude oil price is trading at a nine-month high after declining in last week US crude inventory data and showing optimistic views over the coronavirus relief package in the US. However, upside movement is controlled due to the increase in Gasoline Inventory and lower fuel demand.

U.S. West Texas Intermediate (WTI) crude oil futures shined by 25 cents, 0.46%, from $47.62 to $ 47.84 a barrel. Brent Crude Future rose by 32 cents, or 0.63%, from %50.76 to $51.08. Both benchmarks are trading near nine months high, which is high near early march.

Also, on Wednesday the US Fed announces that the interest rate will remain unchanged, which is 0.25% and in addition adds a stimulus package to boost the relief in Coronavirus and unemployment.

At the same time due to a boost in logistics and e-commerce driven trucking and transportation diesel consumption increased, which is signalling a positive strength to the petroleum market. Higher diesel prices are adding more profits for refineries from processing a barrel of light crude to fuel.

Meanwhile, the oil market outlook is mixed as increased gasoline inventory and lower fuel demand is showing some pressure, while at the same time declining US crude inventory and stimulus relief are adding positive strength in the market.

Similarly, on a technical chart MCX Crude Oil price has shifted above the 138.2% Fibonacci Retracement price extension level 3479 and 100 days SMA’s level 3476, which will act as immediate support levels for the counter. An indicator RSI(14) is moving above level 60, which has witnessed bullish sentiments in the counter for the short term. On the other hand, the price may face resistance near 3750-3770, which is above near 200 points from CMP, which means crude oil price has more upside strength till 3700.

Company Background

Mrs Bectors Food Specialities Ltd was founded by Mrs Rajni Bector and promoted by Mr Anoop Bector which was incorporated in 1995, Mrs Bectors Food Specialities Ltd is one of the leading companies in the premium and mid-premium biscuits segment and the premium bakery segment in North India.

Mrs Bectors Food Specialities Ltd manufactures and markets a wide range of biscuits such as cookies, creams, crackers, digestives and glucose under the flagship brand ‘Mrs. Bector’s Cremica’. Mrs Bectors Food Specialities Ltd also manufactures and markets bakery products in savoury and sweet categories which include loaves of bread, buns, pizza bases and cakes under the brand ‘English Oven’.

Mrs Bectors Food Specialities Ltd supplies products to retail consumers in 26 states within India, as well as to reputed institutional customers with pan-India presence and to 64 countries across six continents during the Financial Year ended March 31, 2020.

‘Mrs. Bector’s Cremica’ is one of the leading biscuit brands in the premium and mid-premium segment in Punjab, Himachal Pradesh, Jammu and Kashmir and Ladakh and ‘English Oven’ is one of the largest selling brands in the premium bakery segment in Delhi NCR, Mumbai and Bengaluru.

We are the largest supplier of buns in India to reputed QSR chains such as Burger King India Limited, Connaught Plaza Restaurants Private Limited, Hardcastle Restaurants Private Limited, and Yum! Restaurants (India) Private Limited.

Mrs Bectors products are manufactured in-house at six manufacturing facilities located in Phillaur and Rajpura (Punjab), Tahliwal (Himachal Pradesh), Greater Noida (Uttar Pradesh), Khopoli (Maharashtra) and Bengaluru (Karnataka), which enables them to have effective control over the manufacturing process and to ensure consistent quality of our products.

Manufacturing facilities are strategically located in proximity to our target markets, which minimizes freight and logistics related to time and expenses.

Basic IPO details

IPO Opening Date15-Dec-20IPO Closing Date17-Dec-20Face Value₹10 per equity shareIPO Price₹286 to ₹288 per equity shareMarket Lot50 SharesIssue SizeAggregating up to ₹540.54 CrFresh IssueAggregating up to ₹40.54 CrOffer for SaleAggregating up to ₹500.00 CrRetail Allocation35%Listing AtBSE, NSETentative Listing Date28-Dec-20

Objects of the Issue

The company will not receive any proceeds from OFS while the proceeds from the fresh issue will be utilized

• To finance the cost of Rajpura Expansion Project.
• To meet general corporate purposes.

Financial Performance (in INR crore)

FY2018FY2019FY2020H1 FY2021Revenue696786765439Expenses643735726387Net income36333038Net margin (%)5.24.23.98.8

Outlook

Seeing the attraction in Burger King IPO and the outlook for QSR we expect that Mrs Bectors Food Specialities Ltd will be another attractive IPO for the investors. The fundamentals of the company don’t look good as of now as they have seen very slow growth in the last 3 years also debt have increased form 35 cr in 2017 to 85 cr in 2020.

The company is well-positioned in North India and has an opportunity to expand in the South and other parts of India. The company does not have any contract with the institutional customer which is the key risk for the company also bakery business has low entry barrier as it can be started with low investment.

However, the demand from the QSR chains will be a key beneficiary for the company. We recommend a SUBSCRIBE rating to the IPO only for the aggressive investors for listing gain and short term.

What are Farm Bills?

On September 27, India's President gave consent to three farm bills herein listed below:

Farmer's Produce Trade and Commerce (Promotion and Facilitation) Bill, 2020

As per this bill, farmers can enter into a written agreement for a specified period of time with companies and companies can customize the price, standard, and quality for the produce and other legalities in advance.

Farmer's (Empowerment and Protection) Agreement of Price Assurance and Farm Services Bill, 2020

The new Marketplace law says that farmers can sell their produce anywhere – and not just in the APMC approved marketplace or mandis, they can sell it into not only their state but outside their state even online. Whereas state governments are prohibited from levying any market fee, cess, or levy outside APMC or Mandi areas.

The Essential Commodities (Amendment) Bill, 2020

This Act mainly controls and deals with the production, supply, and distribution of certain essential commodities. Companies and Supermarkets etc cannot accumulate the items listed in this act when there is a shortage and they can’t artificially increase the price.

Why Are Farmers Protesting?

The Farmers of UP, Haryana, and Punjab are upset with these bills and fear that this may be an excuse to pull off the MSP safety net from under their feet.

What is MSP?

MSP stands for Minimum Support Price, It is the price lay down by the government to purchase crops from the farmers, whatever may be the market price for the crops. It is a significant part of India's agricultural price policy that assures the farmers about agricultural income before the sowing. MSP protects the farmers against excessive fall in price during bumper production years

Further State like Haryana & Punjab has vested interest of reduction in their state earnings as state governments are prohibited from levying any market fee, cess, or levy outside APMC or Mandi areas.

Haryana levies 2% Mandi Tax that goes to Mandi Board & 2% Rural Development cess that goes to state govt. whereas in Punjab it is 3% Mandi Tax and 3% rural development cess. Punjab is a smaller state and that earns Rs. 1700 crore in a year through rural development cess & Mandi tax. Besides this 2.5% commission agent also take home 2.% of the sale price.

So. these are some controversies on Farm Bills, Now let's see what comes out on round table conference between Farmer Unions and Centre.

Source:

https://www.indianeconomy.net/splclassroom/what-is-minimum-support-price/

National Stock Exchange of India Limited (NSE) has launched its first agricultural commodity futures contract for crude degummed soybean oil on December 1 having the trading symbol as DEGUMSOYOIL. The contract with the lot size of 10MT (metric ton) is having monthly expiry that will be settled in cash and Kandla will be held as price basis.

The contract will facilitate the soybean oils processing and allied industries in India and overseas, a perfect hedging tool for managing their price, the National Stock Exchange (NSE) said in a statement.

Vikram Limaye, MD and CEO of NSE, said the exchange is dedicated to deepening the Indian commodity markets by providing convenient and cost-effective onshore hedging products.

India is the largest importer of edible oils in the world. The futures contract will act as a perfect hedging tool for the soybean oils processing and allied industries in India and overseas to manage their price risks.

Basically, Crude Degummed Soybean Oil (CDSO) is produced from soybeans. Most of the free fatty acids and gums naturally present in soybeans are removed by mechanical, physical or sometimes chemical separation. The oil is then degummed for applications or consumption.

KEY FEATURES:

As we can see in NCDEX Soyabean Oil, Indore is the price basis, which does not clearly reflect the price dynamics of imported oil but focuses on domestic production whereas, in the new product of NSE CDSO having Kandla as price basis, it clearly reflects on the dynamics of imported oil as CDSO contract would be suitable for the role of benchmark for Indian Soyabean Oil.

Imported soyabean oil contribute to 2/3^rd of India’s total soyabean oil supply, as almost 3/4^th of total imports originate from Argentina, whereas half of the imports arrive at Kandla port.

The new contract of NSE CDSO will open up the gate for great trades, Arbitraging, Spread and Hedging opportunities.

CONTRACT SPECIFICATIONS:

• Trading Session - Monday to Friday, 9:00 am to 9:00 pm
• Contract Listing – Serial monthly contracts as per launch calendar (shown in next slide)
• Commencement Day - 1st calendar day of the contract launch month. If the 1st calendar day is a holiday then the following working day. (Expiry Day + 1)
• Last Trading Day - Last calendar day of the contract expiry month. If last calendar day is a holiday then preceding working day.
• Trading Unit – 10 MT
• Quotation / Base Value - per 10 Kg
• Tick Size – Re.0.10 (10 paise)
• Price Quote - Ex-tank, Kandla inclusive of all duties and exclusive of GST
• Margins – Initial Margin (as per SEBI guidelines) Refer NSE Clearing circular; ELM – 1%, Additional / Special margins at times of additional volatility
• Final Settlement Price (FSP) – Based on Polled Spot Price (as per SEBI guidelines)
• Settlement Mechanism – Cash Settled (On expiry all the open positions shall be settled in cash as per FSP)

Sources:

www.nseindia.com

www.ulprospector.com

www.financialexpress.com

Gold is the most important and precious financial asset for Indians and worldwide. It is also considered a symbol of wealth and prosperity among Indians because their emotional sentiments are connected with this.

People think that gold is the best investment form to deal with Inflation and they can convert it to cash in case of emergency need of money, it also helps people to take as a Mortgage loan.

But while investing in gold so many points come in our mind that what are the factors which influence the prices of gold? So, below are some important factors which affect gold prices:

Factors Affecting Gold Prices In India:

Demand & Supply:

As it’s very clear for anything which is traded that demand and supply play a vital role in influencing the price of those instruments. Similarly, the demand and supply of Gold play an important role in determining its price. Although gold is not a consumable commodity like Oil, Copper, etc. Historically, Gold mined till date from mines is still available in the world. Also, the production of the gold from the mines is not too high and if in this situation demand will increase so definitely it will increase the prices of the gold. Due to COVID-19 gold mines were impacted all over the world due to lockdown. Mining production fell almost 3% in the first quarter of 2020 from 2015.

Central Bank’s Gold Reserve:

Central banks of the major economies (like the US, China, India, UK, Australia) hold Gold & currency as a part of their reserves for managing trade war and cash flows in their countries. In this kind of situation due to sheer volume either buying or sell by banks may derive the price of gold up or downside.

Import Duty:

Since the contribution of India in world gold production is less than 1 per cent, but it’s the second-largest consumer of gold after China. So, it imports a huge amount of gold to fulfill demand. Therefore, Import Duty plays a crucial role to derive the gold price in India.

Interest Rate Relations:

There is an inverse relation between gold prices and interest rates. If the interest goes up then people start selling gold to get it to liquidate and they take more cash in their hand on the other hand if the interest rate goes down so people start buying gold due to having more cash in their hand to get a good price appreciation of the yellow metals.

Currency Exchange Fluctuation:

As gold is traded in US Dollar in the international market, therefore, when we import gold so all transactions are done in USD then there is a need to convert USD to INR, which fluctuates gold prices in India. If the INR starts depreciating it will make gold costlier and vice versa.

In our Dussehra exclusive, we bring together an assorted list of exclusive Top 10 picks from our research analysts.

Central Depository Services Ltd (CDSL): CMP – 460 TGT 625

• Central Depository Services (India) Ltd (CDSL) is the first listed Indian securities depository based in Mumbai.
• The main function of CDSL is to facilitate holding of dematerialized securities enables securities transactions to be processed by book entry.
• CDSL facilitates holding and transacting in securities in the electronic form and facilitates settlement of trades on stock exchanges.
• Only 3% of the people have Demat account in India therefore big opportunity lies for depository companies.
• Duopoly market where CDSL holds 52% market share and growing rapidly as compared to NSDL because it is focusing more on retail investors/traders.
• We may be at the cusp of a long-term trend, similar to what played out through the 1980-2000 era in the US capital markets. During that period, retail participation, which was around 5-6% in the early 80s, ramped up to 45.7% by early 2000.
• There is huge scope for growth in other investment instruments like the bond market which will be a trigger for growth in CDSL.
• Its subsidiary CDSL venture ltd is a key player in eKYC.
• Its subsidiary CDSL Insurance Repository Ltd which helps policyholders to keep an insurance policy in electronic form will help CDSL to create another avenue for growth.
• Asset light business with no debt.
• It trades with 55-60% EBIDTA margin with more than 15% ROE which is expected to rise further.
• Risk: A brutal fall in the Equity market and any change in technology may disrupt the business.

HDFC Life Limited (HDFC LIFE): CMP – 564 TGT 675

• HDFC Life Limited is a long-term life insurance provider with its headquarters in Mumbai, offering individual and group insurance services.
• HDFC Life's products include Protection, Pension, Savings, Investment, Health along with Children and Women plans. The company also provides an option of customizing the plans, by adding optional benefits called riders, at an additional price.
• As compared to other developed economies, India remains vastly under-insured, both in terms of penetration and density. The ‘protection gap’ in India is amongst the highest in the world at 92.2% as of 2014.
• Despite the recent COVID-19 outbreak dampening growth projections for economies across the globe, the structural story for insurance remains intact. Insurance remains a multi-decade opportunity in the Indian context and insurers are well poised to maximize the long-term growth potential of the industry.
• The proportion of the insurable population (people between the ages of 20 and 64) is expected to touch almost 1 billion by 2035, thus outlining the need for long-term savings and protection plans.
• The number of people above the age of 60 years is expected to triple by 2050 as compared to 2015, thus providing insurers with an opportunity to tap the retirement space by way of offering long-term income and annuity products.
• Within the private sector, the top 7 insurers account for 78% of the market (in terms of individual WRP) in FY 2020. (Weighted Received Premium).
• Life insurance penetration in India, which is measured as a ratio of premium to GDP rose marginally from 2.74 in 2018 to 2.82 in 2019 while density which is measured as the ratio of premium to total population also increased marginally from 54.0 in 2018 to 58.0 in 2019.
• The share of the working population is expected to reach 40% in 2030. With the rise in the working population, the sale of pure protection products as well as ULIPs is on the rise.
• With rising per capita incomes and growing nuclear families, there is a need for increased coverage.

Bajaj Finserv Ltd. (BAJAJFINSRV): CMP – 5831 TGT 7500

• Bajaj Finserv Limited, a part of Bajaj Holdings & Investments Limited, is an Indian financial services company focused on lending, asset management, wealth management and insurance.
• It has an umbrella of financial services including loan, life insurance, general insurance, mutual fund, stock broking, credit card, etc which all are going to witness decent growth.
• We can expect value unlocking in the future when the company may plan to list some of its subsidiaries.
• It is a holding company of Bajaj Finance which is a leader in retail finance and has a low cost of funding.
• It is likely to bring disruption in the stock broking industry because of its low brokerage plan.
• During the year, the Company incorporated a wholly-owned subsidiary called Bajaj Finserv Health Ltd. Over time, this entity is expected to create a digital ecosystem in the healthcare segment connecting customers with service providers in the healthcare space such as doctors, hospitals, nursing homes, pharmacies, diagnostic centres, and the like by offering a complete range of products including financial solutions.
• The company is continuously working on innovative products to cater to the needs of retail consumers.
• It is maintaining ROE of more than 15% consistently.

Divis Laboratories Ltd. (DIVISLAB): CMP – 3068 TGT 4200

• Divis Laboratories Ltd. is an Indian pharmaceutical company. It produces active pharmaceutical ingredients (APIs) and intermediates for the manufacture of generic drugs.
• One of the leading Active Pharma ingredient (API) players in the world which has six multi-purpose manufacturing facilities from two sites with all support infrastructure like utilities, environment management and safety systems.
• Covid19 has disrupted the global supply chain mainly for the Pharma industry where the world is looking for an alternative option other than China for their API need where India is going to play a major role in the World Pharma Industry.
• The Indian government has set aside Rs . 10,000 crore ($1.2bn) for the pharmaceutical industry to shift the country away from its reliance on active pharmaceutical ingredients (APIs) produced in China.
• In an attempt to prevent a similar occurrence in the future, the Indian government plans to finance the construction of three bulk drug parks, through an investment of Rs. 3,000 crore over the next five years.
• The government will create a production-linked incentive scheme for the promotion of domestic manufacturing of critical drug intermediates and APIs in the country.
• Indian Pharma companies are expected to do well due to their scale, cost advantage, and a preference for increased sourcing from India. Most of the investors, therefore, are interested in API manufacturers, domestic formulations businesses and drug makers that specialize in acute chronic diseases
• Divis Lab has well experienced and has quality management.
• Stock is trading at PE of 53 but ROE of 25% which is likely to rise further justifies premium valuations.
• It is generating around 40% of the operating profit margin.

PNC Infratech Limited (PNCINFRA): CMP – 172 TGT 225

• PNC Infratech Ltd (PNC) is an Infrastructure construction, development and management company; expertise in the execution of projects including highways, bridges, flyovers, airport runways, industrial areas and transmission lines
• The infrastructure sector is going to play a key role in recovery in the economy and similar to capital goods sectors, the Infra sector didn’t perform post-2007.
• One of the quality company which stands strongly against sector headwinds.
• PNC Infra has delivered good profit growth of 43.39% CAGR over the last 5 years
• The executable order book stood healthy at Rs15,525cr which is 3.2x FY20 revenue, provides revenue visibility.
• PNC remains our preferred pick in the EPC space given its robust order book, comfortable working capital cycle, healthy return ratios and lean balance sheet. Notwithstanding near term hiccups on account of Covid-19, PNC is likely to tide over with resilient fundamentals.

SRF Limited (SRF): CMP – 4422 TGT 5550

• SRF Limited is a chemical-based multi-business conglomerate engaged in the manufacturing of industrial and specialty intermediates. The company has operations in three countries namely India, Thailand and South Africa and an upcoming facility in Hungary and has commercial interests in more than seventy-five countries.
• Chemical is another space where India is likely to gain a major share of the world chemical industry as the world is looking for alternatives to China whereas China itself is shutting many chemical plants due to pollution control measures.
• Over the last 5 years, SRF has incurred CAPEX of INR 53b – constituting 63% of the CAPEX incurred over the last decade. Thus, CAPEX intensity has increased in the last 5 years. SRF plans to spend INR12-13b on CAPEX in FY21 across geographies and segments.
• Lower refrigerant prices, weak demand in end-user industries due to a slowdown in the auto sector, and tepid demand from the white goods segment due to COVID-19 impacted this segment. However, exports continued to improve. Going forward, the management expects better demand from the replacement market and faster utilization (from 3 years expected earlier) in the recently commissioned hydrofluorocarbon (HFC) capacity.
• SRF's Chemical Business saw robust growth during Q4 on strong demand from agrochemical and pharmaceutical customers. In FY20, growth was well over the previously guided 40-50% growth rate. The segment clocked revenue over INR 1,650 crore, an over-60%-growth-rate during the fiscal, due to strong demand and improving capacity utilization. The management guided at a 20-25% growth rate in FY21, led by a strong order book. Trends from the Pharma segment and Latin American markets continue to improve. This segment will be a major growth driver for SRF as its contribution to the revenue mix improves (~23% in FY20 from ~15% in FY19).
• The company was successful in achieving its guided growth rate of 40-50% for FY20 in the Specialty Chemicals business and registered revenues of ~16.5bn for the full year.
• Specialty Chemicals contributed ~Rs 16.5bn out of the total Chemical business revenues for FY20. Speciality business delivered a healthy performance due to strong export demand especially coming from its Agro and Pharma customers and improved utilization levels on its enhanced capacities.

Siemens India Ltd (SIEMENS): CMP – 1280 TGT 1550

• One of the world’s biggest producers of energy-efficient, resource-saving technologies, Siemens is a pioneer in infrastructure and energy solutions, automation and software for industry and is a leader in medical diagnosis. Siemens also provides business-to-business financial solutions, rail automation and wind power solutions.
• It is said that tough times act as an opportunity where Governments across the world need to take major steps to bring the economy on the track where Capex will play a major role, therefore, we are bullish on capital good space which didn’t give any return since 2007.
• Valuations are attractive and the cycle is likely to turn upside for this sector.
• Make in India and make for the world theme is likely to act as a catalyst for the company.
• The company remains focused on Digitization and localization, creating smart infrastructure.
• It is a virtually a debt-free company with ROCE of around 19%.

Larsen And Toubro Infotech Ltd (LTI): CMP – 3061 TGT 4100

• LTI is a global technology consulting and digital solutions company helping more than 420 clients succeeds in a converging world, with operations in 32 countries. LTI helps clients in digital transformation with LTI’s Mosaic platform enabling clients mobile, Analytics, IoT and cloud journeys.
• The technology sector may continue to outperform due to major disruption in word post Covid19 where stock picking will remain a key factor.
• L&T Infotech (LTI) is one of the fastest-growing midcaps IT companies in India. It is part of the L&T group and provides services like ADM, Enterprise solutions, Infrastructure management services, etc.
• LTI has been growing significantly faster than both mid and large-cap peers have over the past few years on the back of strong deal wins.
• Promoters held 74.53% stake in the company as of March 31, 2020, while FIIs held 9.46%, DIIs 7.19% and public and others 8.81%.
• LTI is maintaining ROE of more than 30% for the last 3 years.
• LTI Management is optimistic & confident about the future growth potential capitalizing its core strategy (Digitizing the core, Data-driven organization, Experience transformation, and Operate to transform) with customer centricity as the key engagement tool.

Bajaj Auto Ltd (BAJAJ-AUTO): CMP – 3082 TGT 3700

• Bajaj Auto is the world’s sixth-largest manufacturer of motorcycles and the second-largest in India. It is also the world’s largest three-wheeler manufacturer. The company is based in Pune, Mumbai with plants in Chakan (Pune), Waluj (near Aurangabad) and Pantnagar in Uttarakhand. Bajaj Auto is India’s largest exporter of motorcycles and three-wheelers.
• The only company to witness revenue growth at the time of slowdown in the auto sector.
• Social distancing and lockdown are acting as the key driver for the growth in the two-wheeler industry.
• We expect the Company to fare well in the current environment on the back of its diversified portfolio mix and dual focus on entry and premium segment.
• Bajaj Auto is also coming up with new models in the premium segment and already has a strong market share in the 2-wheeler export market. We believe that going forward; the premium segment along with exports will drive the next leg of growth in 2 wheeler industry over the long term.
• Bajaj Auto is working towards its goal of achieving a market share of ~24% in the domestic 2W market. Its current market share stands at ~19% in the motorcycle segment as of Q1FY21. Management expects the market share gains to be driven by innovative product launches.
• Bajaj Auto brought its historic brand back to life with the launch of the next-generation Chetak in an electric avatar
• We remain positive on the long term growth prospects of the Company owing to 1) strong financial profile of the company, 2) Diversified portfolio mix (domestic 2W, 3W, EV and exports) 3) Innovation in products with a dual focus on entry and premium segment 4) Its ability to sustain profitability despite weak volumes/ exports 4) Partnerships with global MNCs and new product launches.

Dixon Technologies Ltd (DIXON): CMP – 9800 TGT 13000

• Dixon Technologies (India) Limited is the largest home-grown design-focused and solutions company engaged in manufacturing products in the consumer durables lighting and mobile phones markets in India.
• Its diversified product portfolio includes (i) consumer electronics like LED TVs; (ii) home appliances like washing machines; (iii) lighting products like LED bulbs and tubelights downlighters and CFL bulbs; (iv) mobile phones and (v) CCTV & Digital Video Recorders (DVRs).
• Contract manufacturing is going to be the next big theme India as the world is looking for an alternative option for China and the Indian government is continuously focusing on the electronic segment for “Make in India” boost where tag line of Dixon technologies “Brand behind brands” itself tells a lot about the company.
• Rising manufacturing costs in other economies, growing labour costs in China & tendency by bigger original equipment manufacturer (OEMs) to outsource manufacturing instead of building their infrastructure is driving the growth of the EMS market in India. More & more brands are going to focus on branding & distribution & manufacturing as part of the value chain will be outsourced
• Market leader in the industry who does contract manufacturing for big brands like Samsung, Panasonic India Pvt. Ltd, Philips Lighting India Ltd, Haier Appliance (I) Pvt. Ltd, Gionee, Surya Roshni Ltd.
• Dixon Ltd has entered into an agreement with the Chinese big brand Xiaomi for the manufacturing of Smart LED TV.
• The increasing penetration of the internet has led to a surge in mobile phone demand, leading to a significant rise in production. Dixon currently manufactures feature phones, smartphones, PCBA for mobiles with a backward integration framework.
• It has also entered into medical device equipment manufacturing and management is very optimistic about it.
• It has entered into a new line of business to manufacture set-top boxes where Jio is its key client.
• Valuations are overstretched but we believe that it has the potential to see multifold growth in the next decade by looking sector outlook, management commitments and its product portfolio.

Day Trading refers to market positions that are held only a short time; typically, the trader opens and closes a position the same day but positions can be held for a period of time as well. The position can be either long (buying outright) or short ("borrowing" shares, then offering to sell at a certain price).

A day trader or intraday trader is looking to take advantage of volatility during the trading day, and reduce "overnight risk" caused by events (such as a bad earnings surprise) that might happen after the markets are closed.

Day trading got a bad reputation in the 1990s when many beginners began to day trade, jumping onto the new online trading platforms without applying tested stock trading strategies. They thought they could “go to work” in their pyjamas and make a fortune in stock trades with very little knowledge or effort. This proved not to be the case.

Yet day trading is not all that complicated once you learn a simple, rules-based strategy for anticipating market moves, such as that taught at Online Trading Academy.

Day Trading for Beginners

Beginners can get overwhelmed by what they perceive to be the fast-paced and aggressive strategies necessary to generate large returns through day trading. This doesn't have to be the case, as Online Trading Academy's patented and proven core day trading strategy relies on patience and a good understanding of how to analyze risk and reward scenarios on any trade.

While it takes some work to fully learn and rely on guiding principles of day trading or intraday trading, beginner traders can give themselves a head start with some basic tips to craft a well-developed trading style.

Here are 10 Strategies on How to Day Trade for Beginners:

1. Look for scenarios where supply and demand are drastically imbalanced, and use these as your entry points. The financial markets are like anything else in life: if supply is near exhaustion and there are still willing buyers, the price is about to go higher. If there are excess supply and no willing buyers, the price will go down. At Online Trading Academy, students are taught to identify these turning points on a price chart and you can do the same by studying historical examples.
2. Beginners should always set day trading price targets before jumping in. If you’re buying a long position, decide in advance how much profit is acceptable as well as a stop-loss level if the trade turns against you. Then, stick by your decisions. This limits your potential loss and keeps you from being overly greedy if the price spikes to an untenable level. Exception: in a strong market it’s acceptable to set a new profit goal and stop-loss level once your initial target is achieved.
3. Insist on a risk-reward ratio of at least 3:1 when setting your day trading targets. One of the most important lessons in stock trading for beginners is to understand a proper risk-reward ratio. As the Online Trading Academy instructors point out, this allows you to “lose small and win big” and come out ahead even if you have losses on many of your trades. In fact, once you gain some experience, risk-reward ratios of as high as 5:1 or even higher may be attainable.
4. Day trading requires patience, so be a patient trader. Paradoxical though it may seem, successful day traders often don't trade every day. They may be in the market, at their computer, but if they don’t see any opportunities that meet their criteria, they will not execute a trade that day. That’s a lot better than going against your own best judgment out of an impatient desire to “just do something.” Plan your trades, then trade your plan.
5. Day trading also requires discipline, especially for beginners. Beginners need to set a trading plan and stick to it. At the Online Trading Academy, students execute live stock trades in the market under the guidance of a senior instructor until the right decisions become second nature. If you’re trading on your own, impulsive behavior can be your worst enemy. Greed can keep you in a position for too long and fear can cause you to bail out too soon. Don’t expect to get rich on a single trade.
6. Don’t be afraid to push the “order” button and execute your trades. Inexperienced day traders often face “paralysis by analysis” because they get wrapped up in watching the candles and the Level 2 columns on their screen and can’t act quickly when the opportunity presents itself. If you’re disciplined and work your plan, actually placing the order should be automatic. If you’re wrong, your stops will get you out without major damage.
7. Only day trade with money you can afford to lose. Successful traders have a “little bucket” of risk capital and a “big bucket” of money they’re saving for retirement or another long-term goal. Big bucket money tends to be invested more conservatively and in longer-duration positions. It’s not absolutely forbidden to use this money occasionally for a day trade, but the odds should be very high in your favor.
8. Never risk too much capital on one trade. Set a percentage of your total intraday trading budget (which might be anywhere from 2% to 10%, depending on how much money you have) and don’t allow the size of your position to exceed it. Otherwise, you may miss out on an even better opportunity in the market.
9. Don’t limit intraday trading to stocks. Forex trading online, futures and options are three asset classes that display volatility and liquidity just like stocks, making them ideal for day trading. And often one of them will present appealing opportunities on a day when the stock market is going nowhere.
10. Don’t second-guess yourself, but do learn from experience. Every day trader has losses, so don’t kick yourself when the occasional trade doesn’t go your way, especially if you're a beginner. Do, however, confirm that you followed your established day trading rules and didn’t get in or out at the wrong time.