The Power of Compounding – Why Starting Early Matters

कच्चे तेल की कीमतों में ओपेक देशो द्वारा अगस्त से उतपादन बढ़ाए जाने की सहमती और वैश्विक स्तर पर कोवीड डेल्टा संस्करण के मामले बढ़ने के कारण बिकवाली का दबाव देखा गया है। कच्चा तेल मार्च के बाद से अपनी सबसे बड़ी साप्ताहिक गिरावट के लिए ट्रैक पर है क्योंकि कोवीड डेल्टा संस्करण के प्रसार को रोकने के लिए यात्रा प्रतिबंध, ईंधन की मांग को लेकर चिंता बढ़ा रहे हैं।

अमेरिकी कच्चा तेल वायदा सप्ताह में 4 डॉलर घट कर 69.4 डॉलर प्रति बैरल पर है। जबकि ब्रेंट क्रूड फ्यूचर्स सप्ताह में 3 डॉलर से ज्यादा फिसल कर 72 डॉलर प्रति बैरल हो गया है।

पिछले सप्ताह ब्रेंट और अमेरिकी कच्चे तेल में 5 प्रतिशत से ज्यादा की गिरावट देखि गई है, जो मार्च 2021 के बाद से सबसे अधिक है।जापान में आपातकालीन प्रतिबंधों को अधिकतर प्रान्तों में विस्तारित करने के लिए तैयार है, जबकि दुनिया के दूसरे सबसे बड़े तेल उपभोक्ता चीन ने कुछ शहरों में प्रतिबंध लगा दिए हैं और उड़ानें रद्द कर दी हैं, जिससे ईंधन की मांग को खतरा बढ़ने लगा है। संयुक्त राज्य अमेरिका में दैनिक नए कोवीड मामले छह महीने के उच्च स्तर पर पहुंच गए हैं।

हालांकि, इजरायल और ईरान के बीच बढ़ते तनाव पर चिंता ने कीमतों में गिरावट को सीमित कर दिया और सप्ताह के अंत तक कीमतों में कुछ सुधार रहा।संयुक्त राज्य अमेरिका में कच्चे तेल की आपूर्ति में सुधार करके, तेल की तेजी को भी सीमित कर दिया है।

घरेलु वायदा कच्चे तेल पिछले सप्ताह 5500 रूपए के उच्च स्तरों से फिसल कर 5044 रुपये के निचले स्तरों को छू गया और कीमते 5200 रुपये प्रति बैरल के करीब रही।

तकनीकी विश्लेषण

घरेलु वायदा कच्चे तेल की कीमतों में इस सप्ताह बिकवाली का दबाव रह सकता है। इसमें 5350 रुपये पर प्रतिरोध और 5000 रुपये पर सपोर्ट है।

About Devyani International Ltd:

Devyani International Ltd is the largest Yum Brands franchisee in India and one of the country's leading operators of chain quick-service restaurants (QSR).

As of March 31, 2021, the company had 655 outlets in 155 cities across India. Yum! Brands Inc. owns and runs KFC, Pizza Hut, and Taco Bell restaurants around the world, with over 50,000 locations in more than 150 countries.

About the IPO:

Devyani International IPO subscriptions will begin on August 4th and end on August 6th, 2021. The additional offering of up to Rs. 1,838 crores in the Initial Public Offering of Equity Shares.

The new issuance was reported as raising up to Rs 440 crore and offering up to 155,333,330 equity shares for sale.

The offer's price range has been set at Rs 86–90 per share.

The IPO constitutes an offer for sale of up to 155.33 million shares by the existing shareholders and promoters as well as an Rs440 crore fresh issue.

Objectives of the IPO:

The objectives of the Devyani International IPO are:(i) Repayment of all borrowings(ii) General corporate purposes

RJ Corp Ltd owns the company are up to 90 million. While Dunearn Investments Mauritius Pte is owned the company up to 65.34 million shares, The proceeds of the offering will then be used to repay some or all of the firm's debts.

The total outstanding borrowings of its Company (on a consolidated level) were 541.59 Crores as of June 2021. Devyani is India's largest quick-service restaurant (QSR) company to be listed on Swiggy and Zomato in 2019-2020

Investment bankers that are been appointed for the Issue are as follows :

• Kotak Mahindra Capital Company Ltd,
• Motilal Oswal Investment Advisors Ltd,
• CLSA India Pvt Ltd,
• Edelweiss Financial Services Ltd.

Devyani International IPO details Subscription Dates 4 – 6 August 2021Price BandINR86 – 90 per share Fresh issueINR440 crore Offer For Sale155,333,330 shares (INR1,335.87 – 1,398 crore)Total IPO sizeINR1,775.87 – 1,838 crore Minimum bid (lot size)165 shares Face Value INR1 per share Retail Allocation 10% Listing On NSE, BSE

Strength

• The product portfolio of reputed QSR brands financial discipline, a competitive advantage.
• Yum Brands' is the largest franchisee in India.
• Cross-brand synergies provide you with more operating leverage.
• Significant emphasis on cash flow management.

Risks

• Revenues falling from Rs 542 crore in FY20 to Rs 284 crore in FY21.
• The company's auditors had expressed concern about audited financial statements.
• The majority of the stores are located on leased sites because of which renting costs are incurred
• The company had 297 Pizza Hut locations, 264 KFC locations, and 44 Costa Coffee Locations as of March 31, 2021, in India.
• The core brand stores grew from 469 to 605 outlets between March 2019 and March 2021 which is about 13.58 percent.

Company Strategies

• Core Brands Business's shop network should be strategically expanded
• Invest in technology and place a strong emphasis on digital capabilities
• Continue to increase performance
• Focus on Core Brands' delivery channel

IPO Issue Allocation:

• For QIB the issue allocation is not More than 50% of the offer
• For NII the issue allocation is not less than 15% of the offer
• For Retail, the issue allocation is not less than 35% of the offer

Recommendation:

The company is a major QSR player with well-known international brands. However, the company has experienced a net loss in recent years as a result of high advertising costs, license fees, and commissions.

With the current euphoria in the stock market and IPO listings, one can subscribe to the IPO. Despite the epidemic, it has continued to develop its shop network, opening 109 outlets in the last six months across its core brand business.

KFC and Pizza Hut were among the first to provide contactless delivery in May 2020 and June 2020, respectively.

It is expected that considerable interest will be seen through this IPO. It also provides listing gains. With an increasing number of individuals ordering food or visiting restaurants, future growth appears to be optimistic.

Krsnaa Diagnostics Ltd provides a comprehensive variety of technology-enabled diagnostic services to public and private hospitals, medical institutions, and community health centres across India, including imaging (including radiology), pathology/clinical laboratory, and teleradiology. Across many divisions, the company delivers high-quality, all-inclusive diagnostic services at reasonable prices. Krsnaa Diagnostics Ltd's Initial Public Offering (IPO) will commence for bidding on August 4, 2021, and end on August 6, 2021. A new offering of Rs 400 crore will be part of the company's IPO. It also includes an offer by the company's existing promoters and shareholders to sell up to 8.53 million or 85.30 lakh shares. PHI Capital Growth Fund will sell 1.6 million or 16 lakh shares, Kitara PIIN 1104 will sell up to 3.34 million or 33.4 lakh shares, Somerset Indus Healthcare Fund I Ltd will sell up to 3.56 million or 35.6 lakh shares, and Lotus Management Solutions will sell up to 21,380 shares in the Offer for Sale (OFS).‍

About the IPO

‍Krsnaa Diagnostics plans to raise Rs 1,213.33 crore through its first public offering. The issue is made up of a new issue of Rs 400 crore and an offer for sale (OFS) for Rs 813.33 crore, comprising 8,525,520 equity trading shares having a face value of Rs 5 each. On August 3, a day before the IPO opens for subscription, all anchor reservations will take place. The issue price range was Rs 933 to Rs 954 per equity share, with a face value of Rs 5 per share. It's an IPO with a book-built issue. The offering has a grey market premium of Rs 400, implying that the shares are trading on the unlisted market at a premium of Rs 1,333 to Rs 1,354 per share. The minimum lot size for the Krsnaa Diagnostics IPO is 15 shares, with an associated application fee of Rs 14,310. On the top end of the lot, there are 195 shares with a Rs 186,030 application amount. Retail investors can apply for up to 13 lots at the higher end of the lot size for this issue.

‍Strength

‍For starters, it is one of India's most well-known diagnostic chains. The company's financial picture. It also provides a broad and diversified variety of diagnostic services because of its complicated network and presence in 13 locations, it has a large market footprint. In addition, the firm has a solid financial track record.

‍Objectives

1. A proposal to funding the establishment of diagnostics centres in Punjab, Karnataka, Himachal Pradesh, and Maharashtra.
2. Repayment/prepayment, in whole or in part, of our Company's borrowings from banks and other financial institutions.
3. General business objectives

Strategies:

• Continually grow our footprint in India
• Expand diagnostic services with an emphasis on specialist diagnostics
• Increase your digital footprint
• Maintain a high level of social impact
• Continue to increase profit and efficiency
• Opportunistic purchases expand business and geography.

Investment allocation:

‍When it comes to investment allocations, the retail part is only 10%. The SME IPO has a 75 percent reservation for qualified institutional buyers (QIBs) and a 15% reservation for non-institutional investors (NIIs).

‍Financial Highlights:

‍The firm was able to sustain a high level of performance. For the fiscal year ending March 31, 2020, the film earned Rs 271.38 crore in total revenue. This was increased from Rs 214.31 crore the previous year. The company's net losses increased to Rs 111.95 crore in FY20, up from Rs 58.05 crore the previous year. Krsnaa Diagnostics, on the other hand, had a significant decrease in spending and an increase in income.For the nine-month period ending December 31, 2020, the net profit and sales were Rs 195.93 crore and Rs 562.7 crore, respectively. This trend was caused by increased income from operations as a result of the pandemic's outbreak.

‍Recommendation: The business model is scalable, and in the present climate, where post-COVID health consciousness is at an all-time high, this industry is only going to grow in the next years. This represents a big market for the firm as well as significant potential.The firm intends to use the proceeds of the offering to pay down debt, which is usually valued accretive for service-oriented enterprises. ) The IPO price for Krsnaa Diagnostics discounts the most recent year's profits at roughly 21X, which is lower than the comparable group. We recommend you to subscribe(Aggressive Investors).

Introduction:

Rolex Rings, Incorporated in 2003, based in Rajkot, Gujarat, is one of the country's largest makers of forged and machined components. The business has established a long-term relationship with its clients.

Rolex Rings made a profit of Rs 86.95 crore for the fiscal year ended March 31, 2021, up from Rs 52.94 crore the previous year, its net profit at a compounded annual growth rate stands at 21.3%.

More than half of the company's revenue comes from outside the country, with 60 customers in 17 countries, including India.

Domestic and worldwide markets are spread across two-wheelers, passenger vehicles, commercial vehicles, off-highway vehicles, electric vehicles), industrial machinery, wind turbines, and railways, among other areas.

It produces a diverse range of bearing rings, that are appropriate for a wide range of end-users.

Some of the main worldwide and local names that Rolex Rings serves are SKF India, Timken India, and NRB etc.

About the IPO

The SME IPO is worth Rs.731 crore. The new issue is worth 56 crore rupees. This will be utilized to meet long-term working capital needs as well as other corporate needs. The promoters are given a sale offer for the remaining 675 crores. The issue opens on July 28, 2021, and will close on July 30, 2021. The issue is priced at 880 to 900 per equity share.

The IPO allocation is as follows:

About 50 per cent is kept for Qualified Institutional Buyers,15 per cent for non-institutional buyers, and 35 per cent for retail investors.

Objective:

The funds obtained through the IPO will be used in the following manner:

• To support the company's long-term working capital needs as for other corporate objectives.
• Rolex Rings intends to gain from the listing of its equity shares on stock exchanges
• the improvement of its brand name among existing and future customers the establishment of a public market.
• The net proceeds would be used to support the company's day-to-day operations to the tune of Rs 45 crore.

Key details

Rolex Rings IPO details

Subscription Dates: 28 – 30 July 2021

Price Band

INR880 – 900 per share

Fresh issue

INR56 crore

Offer For Sale

7,500,000 shares (INR660 – 675 crore)

Total IPO size

INR716 – 731 crore

Minimum bid (lot size)

16 shares

Face Value

INR10 per share

Retail Allocation

35%

Listing On

NSE, BSE

Strengths:

• Among the leading forging companies in India.
• Long-standing customer relationships
• Broad product portfolio
• Manufacturing capabilities giving scalability, flexibility,
• Location advantage
• Domain experts and management team
• Experienced promoters
• Strong financial performance track record

Risks:

• The company has resulted in a CDR because of debt
• Highly reliant on the performance of India's and other nations' automotive sectors.
• Impact of the COVID-19 outbreak.
• Substantial impact on operations, revenues, financial condition, cash flows.
• the government puts more focus on the electric car segment

Financials:

• For the past two years revenue falls by 16% per year. This stands at around 619.75 crores
• The company's total assets have increased during the same time span. 796.92 crore is the total asset for FY 20-21.
• Rolex Rings made a profit of Rs 86.95 crore in the previous fiscal year, up from Rs 52.94 crore the year before.
• In 2020-21, the company's operating sales were Rs 616.36 crore, up from Rs 666 crore the previous year.
• The firm has also increased its margins, which were 9.2 per cent in FY18 and 14.1 per cent in FY21.

Recommendation:

• The casting and forging industry is anticipated to increase at a rate of 13 per cent -14 per cent, up from 5 per cent -7 per cent now, thanks to the government's attempts to revive the economy.
• Infrastructure, oil and gas, mining, railroads, and defence are all projected to make significant contributions. The company's valuations appear to be appealing, with the IPO coming at a PE of 24x, compared to the industry average PE of 47x.

Conclusion

Rolex Rings, a global vehicle parts producer, is ready to launch its public offering as the comeback gathers steam.

By investing in renewable energy, the corporation hopes to lessen its reliance on changing electricity costs and lower its carbon footprint.

The company now operates wind turbines with an installed capacity of 8.75 MW. The company is in the midst of extending its solar project capacity by 12 MW and has already placed purchase orders for the necessary equipment.

The automobile industry is slowly rebounding in 2021 after a tough ride in 2020. Auto sales are being driven by a number of factors, including the relaxation of lockout restrictions and pent-up demand.

Soybean is one of the primary commodities which is traded on NCDEX. These days vast blow has been viewed in its prices as trading around its all period high. It is because of the lack of supply in the physical market and the increase in demand.

Another reason is monsoon stipulations as excess rainfall has been seen within more than a few soybean producing states like Maharashtra where the sowing has been affected badly because of delay in monsoon the sowing in Madhya Pradesh also got affected.

But looking at the contemporary situation, it is anticipated to have good sowing in Madhya Pradesh in the near term because of ongoing monsoon conditions namely as each of these states makes a contribution in accordance with around 89% in the quantity produced.

WORLDWIDE SOYBEAN PRODUCTION (ACTUAL & FORECASTED)

YearUSBrazilArgentinaChinaIndia2021-2022 119.884144521911.22020-2021112.5491374719.610.452019-202096.667128.548.818.19.32018-2019120.515119.755.315.96710.932017-2018120.065123.437.815.2838.35

As per SOPA, the worldwide soybean production has been increased over the years and the 2021-2022 forecast has also been increased compared to the last few years.

Last year the prices surged because of the buying done from China’s end as because of fear of coronavirus cases China was continuously buying it to meet its domestic demand in future but as it got sufficient supply, the correction was seen in the prices of soybean.

In addition to this, soybean was used as feed for the cattle in the cattle industry and poultry farms but now it has been substituted with wheat and rice which also led to the low import of it. Since China is the biggest importer of Soybean and Soy complex so any action from their end has direct on the prices of soybean worldwide.

India's Major Soybean Producing States

As in the past few days or last week, multiple times circuit has been seen in the prices of soybean, SOPA said that it is completely taken over by the speculators, the end-users of soybean or soybean meal like poultry industry/aquaculture are extremely suffering because of such speculation activities.

To support its claim, SOPA said, "In the last seven trading sessions, the soybean futures contract on NCDEX has gone up by 21.77% and the upper circuit had to be applied 4 times." In addition to this SOPA also said that there is no physical stock in NCDEX warehouses and the demand and supply for oil in the year 2020-2021 were slightly tight.

"To curtail speculation, we request to increase margin money from current 25% to 50% for lean season contracts and that the circuit limit in lean season should be reduced to 2% a day, "said SOPA in a release.

But recently it came into the news that the exchange denied the SOPA request, as per the NCDEX there is no speculation and prices are trading fairly as there is non-availability of the soybean in the physical market and demand is increasing rapidly. So we can say that in the near term some more upside view can be seen in the prices of soybean.

Investment is something that gives you outstanding returns if done properly. If you have excessive funds lying in your bank account, save them wisely. You might have heard the above statement from every stock analyst who manages your wealth profile. This is because money is always measured in terms of time.

How to Make the Best Use of Your Excess Funds?

The time value of money states that the amount of money you have in present is worth more than that the same amount of money you will have in the future. Instead of letting your money sit idle, it would be much better if you park your surplus fund with liquid ETFs.

Liquid ETFs or Liquid Exchange Traded Funds are the mutual funds whose units are traded on the stock exchange. Unlike normal ETFs, the investment in liquid ETFs generally happens in overnight securities such as Repo or Reverse Repo securities, landing obligations and collateralized borrowings.

The primary motive of liquid ETF is to provide an income filled with low risk, at the same time gives a high liquidity level.

Investors who park their funds in liquid ETFs can earn significant returns on idle funds while at the same time remaining liquid to benefit from lucrative investment opportunities.

Liquid ETFs are only suited for large retail investors, portfolio management service (PMS) providers. Futures and Options (F&O) brokers and institutions invest directly in equities, HNI (High Net-worth Individuals).

These are several liquid ETF funds that are readily available to trade. These liquid funds can be traded immediately.

Equity market investors and traders have a habit of making continuous profits from transactions. However, sometimes they even face a loss but these are part of daily work.

The investors who have a tremendous amount of money, always find a better alternative so that they can increase their profit to a greater extent. One such alternative is liquid ETFs. Investing in ETFs enables investors to earn extra profit from excessive funds.

NSE and BSE are the funds that are available for trading where buyers and sellers quickly perform the transactions during the stock market hours on any stock trading days.

ETFs are gaining a lot of popularity these days as many investors consider liquid ETFs as the best instrument that can do wonders with their money.

However, if you are deprived of several benefits of investing in liquid ETFs or exchange-traded funds, this blog will help you out.

ETFs are Preferred Because of their High Liquidity

ETFs are not for long term investment. They are for short term investments and provide high liquidity, these are always preferred by high profile investors. Like other stocks, these funds are also listed in stock exchanges which are traded during the day. These funds are inter-linked with intraday trading and therefore the prices of the ETF heavily depend on the intraday trades.

For instance, if the intraday rates of the underlying assets change, the ETF prices also change. ETF investors are the experienced ones, and therefore they know what they have paid and what they will receive at the selling.

With liquid ETFs, investors move money from one place to another, construct strategies around their investment and manage intraday portfolios. Investing in ETFs allows investors to successfully invest in a diversified portfolio such as stocks, bonds, commodities, derivatives.

Smooth Fund Management

ETFs are passively managed funds that are specially designed to offer low-risk returns and high liquidity. Investors invest in an ETF when they sell equities from their portfolio. Many stockbrokers enable investors to reinvest 100 per cent of the proceeds into an ETF that too on the same day.

The stock market follows a settlement cycle of T+2 days, i.e. ETF units will get credited to investors’ accounts on the settlement day.

ETFs offer many benefits as in this type of scheme, individual investors hold their investment until they find a better alternative to move their funds. Another advantage of ETFs is that investors can forward the funds as a pledge against cash margins if investing in derivative segments.

Many brokerage houses accept ETFs as a cash margin if they want to trade in the derivatives segment.

Portfolio Diversification and Risk Management

Liquid exchange-traded funds offer investors better portfolio management by allowing them to invest in various sectors, industries, and country categories. They provide investors easy exposure to desired stock market segments.

ETFs are now available in the major asset classes, thus making them a good investment option. Also, investors can select to trade ETFs during stock market volatility or continue to invest based on their financial plans to earn profits.

Reduced Costs

The cost of investing in ETFs is quite less than mutual funds as the lower the costs, the higher the returns. Operational costs are an integral part of the structured investment as these costs include portfolio management fees, marketing costs, administrative expenses, distribution costs and more.

Here, lowering the costs means non-involvement of fund managers which means lower expenses of the funds. ETFs have lower expenses in transfers, monthly statements. Unlike open-ended funds, brokerages do require to send regular updates to the investors.

Tax Advantages

Mutual funds have more taxes than ETFs. This is because ETFs have a lower capital gain. The rate of capital gain tax applied to ETFs is also less as compared to mutual fund investments.

Returns

Liquid ETFs have only one dividend option. The daily earned dividends get reinvested into ETFs. Some ETF funds will credit bonus to its investors account weekly or monthly. Since the stock trading returns are low, brokerages waive off brokerage fees and depository participant changes on these funds.

Conclusion

Mutual funds and ETFs are similar investment types. However, the difference lies in the services they provide. ETFs provide higher liquidity than mutual funds and are also convenient to tap when cash flow is needed.