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One of the largest mining and metals companies in the world, Vedanta Limited, managed by billionaire Anil Agarwal, has interests in iron ore, steel, copper, zinc-lead-silver, aluminum, power, oil, and gas in India, South Africa, and Namibia.
The Mumbai-based business paid its shareholders the first interim dividend for FY23, which was 31.5 rupees per equity share, in May 2022. In July 2022, it paid eligible shareholders the second interim dividend, which was 19.5 rupees per share.
The company had declared a third interim dividend of Rs 17.50 per equity share, or 1750% of the face value of Re 1 per share, for the Financial Year 2022–23, totaling Rs 6,505 crore, by a resolution voted by circulation on Tuesday, November 22, 2022.
The ex-dividend date for Vedanta stocks will be before the record date. A stock often trades ex-date prior to the record date. Vedanta ex-dividend will be on November 29.
Vedanta has set the record date for determining whether shareholders are eligible to receive a dividend payment of Rs 17.50. The record date for the dividend's payment, according to the firm, is November 30. This indicates that Vedanta would pay shareholders who have shares of the company in their Demat accounts.
The business raised its total pay-out in two rounds of dividends announced so far in FY23 to Rs 18,960 crore in July when it announced a second interim dividend of Rs 19.5 per equity share.
The company announced its first interim dividend of Rs 31 per share in April, which resulted in an outflow of Rs 11,710 crore.
The Vedanta Resources dividend announcements coincide with the company's efforts to deleverage its balance sheet, since Vedanta Resources controls 69.7% of Vedanta.
Vedanta was the top dividend-paying company in FY22, and it was followed in the top 20 list by businesses like Tata Consultancy Services, Oil and Natural Gas Corporation, HCL Technologies, Indian Oil Corporation, Hindustan Unilever, Hindustan Zinc, Indian Tobacco Company, State Bank of India, and Reliance Industries.
The stocks in this group to be on the lookout for are NMDC, HINDUSTAN ZINC, and COAL INDIA.
Year Ended Dividend Payout Per Share (Rs)Dividend Payout Ratio (%)Dividend Yield EOY (%) COAL INDIA March 2022 17.060.3% 9.3% HINDUSTAN ZINC March 2022 18.0 79.0% 5.8% NMDC March 2022 14.74 6.0% 9.1%
The company's extremely explicit capital allocation policy is one of the factors contributing to the aggressive and large dividend payments. It has specified exactly how much of the company's income would go toward inorganic growth, dividend policy, and capital expenditures. This policy states that shareholders shall receive a minimum of 30% of the company's attributable sustainable profit after tax (excluding HZL profits).
The Company has established a great track record of generating cash flows due to consistent increase in sales volume and balanced capital expenditure for ongoing operations.
Prior to extraordinary and one-time tax credits, Vedanta's profit for the fiscal year 2021–2022 increased by 95% to 24,299 crores, while its sales increased by 51% to 1.3 lakh crore. The company's total debt was Rs 53,109 crore, while its EBITDA increased by 66% to Rs 45,319 crore. On July 28, 2022, the corporation will release its Q1 FY23 financial results.
According to the corporation, the company will maintain an adequate leverage ratio at the consolidated level. "Vedanta Limited's consolidated leverage ratio on December 21 was 0.7x, ranking among the best in its peer group. The company would maintain the consolidated ratio below 1.5x throughout typical business cycles, according to the organization.
Archean Chemical Industries Limited, a renowned specialty marine chemical manufacturer produces and exports Bromine, industrial salt, and sulfate of potash as the main products. In Fiscal 2021, the firm was the leading exporter of industrial salt and bromine, and both products were among the products that have the lowest manufacturing costs in the world.
The specialty chemical manufacturer Archean Chemical Industries' initial public offering (IPO) is set to open on November 9 and end on November 11. The IPO's price range was set at Rs. 386 to Rs. 407 per share. In addition to an offer for the sale of 657 crores by the promoters and current shareholders, Archean Chemical Industries intends to raise 805 crore through a fresh issue of shares through the IPO.
According to the firm, 75 percent of the issue is set aside for qualified institutional investors, 15 percent is allocated to non-institutional investors, and the remaining 10 percent is allocated to retail investors.
The objective of the Offer for Sale (OFS) is to enable the selling shareholders to sell up to 1,61,50,000 equity shares, with the selling shareholders receiving the net proceeds.
IPO Opening Date 09 November 2022 IPO Closing Date 11 November 2022 Issue Type Book Built Issue IPO Issue Size ₹1462.31 Crore Face Value ₹2 per equity share IPO Price₹386 – ₹407 Market Lot 36 Shares Min Order 36 Shares Listing At BSE NSERegisterLink Intime India Private Limited QIB Shares Offered 75% Retail Shares Offered 10% NII (HNI) Shares Offered 15%
The company has a competitive advantage since the industry in which it works has substantial entry barriers.
In Fiscal 2021, the company was India's top exporter of industrial salt and bromine.
Financials in Brief
Its revenue increased by 36% and 78% during the course of FY20-22, while its EBITDA margin increased from 24.3% to 41.3%. The company recorded FY22 revenue of Rs11.3 billion, up 53% YoY, and FY22 EBITDA of Rs4.8 billion, up 78% YoY. In comparison to FY21's PAT of Rs666mn and FY20's net loss of Rs362mn, FY22's PAT was Rs1.9bn. From 92% in FY21 to 72% in FY22, ROE has decreased. The business reported 2QFY23 sales of Rs 4 billion, up 99% YoY, EBITDA of Rs 1.6 billion (margin of 40.2%), and PAT of Rs 844 million, up 4.5 times YoY. In FY22, the company's Net Debt/Equity ratio dropped from 11.4x in FY21 to 3x.
Market observers report that the Grey Market Premium (GMP) for the Archean Chemicals IPO is now 70 per equity share. The shares will be allocated on November 16, 2022. On November 21, 2022, the Archean Chemical IPO is most likely to list on both NSE and BSE
In the calendar year 2021, the Indian chemicals industry was valued at US$178 billion, representing approximately 3- 4% of the value of the global chemicals industry, and with rapid industrialization, this market is expected to grow even more. Archean Chemical Industries Ltd. is a formidable player in the bromine, industrial salt, and sulphate potash industry. It has witnessed a significant improvement in its top-line and bottom-line performance in the last three years. Nevertheless, the high debt-to-equity ratio (3.25 based on March, FY 22 consolidated numbers), high product as well as key customer concentration, and restructuring of loans during FY 17-18 make us averse to the issue. Additionally, the 3 years of data is limited for concluding the sustainability of high growth and margins. In short, considering all the shortcomings, investors should consider this issue for listing gains only due to the company’s reasonable valuations and presence in the specialty chemical industry.
The year 2022 has been a roller coaster ride for the whole world. The Russia-Ukraine war affected the markets globally, featuring higher inflation, geopolitical variability and a rivalry between fiscal and monetary policy. Europe Energy Crisis has affected the economy badly. China’s economy is slowing down as the result of adoption of zero-COVID policy and weakening global demands.
After such market uncertainties, the market valuation is more appealing. While economic conditions are deteriorating and experiencing variability, the approach of entering the market will preferably be cautious positioning and preparing for entry points with gradual approach. Though the global markets have seen the decline in their values in 2022, some analyst predicts that the worst is yet to come. The Fed is expected to stop increasing rates in early 2023 to combat rising inflation.
The episode of uncertainties in the world of economy seems to be never ending. This has impacted Indian economy negatively. However, despite of the global crisis and growth forecast downgrade, India will remain one of the fastest growing key economies in 2023.
Fortunately, the Indian stock market is enjoying spring season when most of the global economy is slowing down. Wall Street brokerage Morgan Stanley has stated it as an "absolute upside with relative downsides" for the domestic equity markets with SENSEX rallying 10 per cent in a base case scenario in 2023 scaling to 68,500 points by December.
Global equity market is expected to be volatile in the upcoming year and defensive sector will be more preferable for investment with the strategy of stable earnings, low leverage and pricing power.
Bonds have never truly been an investment pick like stocks or crypto-currency. But looking ahead to 2023, there is a compelling argument for investing in this underwhelming sector of the market since bonds are cheap, they are expected to pay ever-richer interest, and yes, their deteriorated values are probably going to rise again.
Irrespective of your net-worth, risk tolerance or time horizon, the portfolio of 2023 should have focus on Alternative Investments. Alternatives may diminish inflation- and recession-induced volatility and boost returns more than dividend stocks alone because of their low connection to traditional asset classes like stocks and bonds.
Amid global market volatility, Indian market witnessed the launch of successful IPOs like Dream Folks services and Syrma Technologies that gave investors premium of 46% and 42% respectively in terms of listing gains. Similarly, around 70 companies launched SME IPO that witnessed post listing gains. In the upcoming year, IPOs of some famous companies are in pipeline, some of which are OYO, Byju’s, Swiggy and Go first.
Looking at the market conditions, there could be various methods to make a lucrative gain. Amongst all methods, making returns through listing gains in both SME Board and Main board IPO could be technique (definitely checking the fundamentals first). The second approach could be a long term approach by taking monthly entries in cash market but keeping yourself restricted in nifty250 and entering into companies that are intended towards growth and more ESG Centric. The third method can be used for swing trades i.e. entering into bull spread hedge when you are moderately bullish. And lastly, the most discipline approach could be by doing monthly SIPs and making sure that you are buying optimized worth of NAV.
RBI Governor Shaktikanta Das announces the credit policy after three days of the Monetary Policy Committee (MPC) meetings. In this last meeting of 2022, the central bank raised the repo rate by 35 basis points to 6.25 percent from 5.95 percent earlier. This was the fifth rate hike by the central bank in the last eight months. Since May, RBI has increased the repo rate by 225 basis points to control inflation in the country, but even after all that, the Economy is still fighting with inflation, as said by Governor Shaktikanta Das in his speech.
In this policy update, real GDP growth is projected to be 6.8 percent, which is lower than the earlier estimate of 7 percent.
The RBI maintained its inflation forecast for FY23 at 6.7 percent.
The CPI inflation forecast for FY23 was retained at 6.7 percent.
Governor says the size of forex reserves is comfortable and has improved from USD 524 billion to USD 551.2 billion.
The agricultural sector remains resilient with a 6.8 percent higher winter swing than usual.
RBI decided to introduce single block and multiple debits UPI
A resident from India will now be allowed to hedge gold price risks at the international financial service center.
Though the policy is in line with market expectations due to the hawkish tone of the RBI governor market slipped into negative.
The Indian rupee recovered and gained 3 Paise against the USD.
India's 10-year bond yield rises 8 basis points after RBI announcements.
After this rate hike by the RBI, banks will react to this policy by raising their interest rates for their loans, and ultimately, borrowers of these banks will be impacted by these rate hikes. So, now EMIs will go up and loans will get costlier for customers.
Mr. Das said the battle with inflation is not over yet; hence, we can expect another rate hike in February 2023.
कीमती धातुओं में पिछले सप्ताह भी तेज़ी कायम रही और घरेलु वायदा सोने के भाव 54200 रुपये प्रति दस ग्राम जबकि चांदी के भाव 67200 रुपये प्रति किलो के स्तरों पर पहुंच गए है। डॉलर में पिछले सप्ताह 1 प्रतिशत की तेज़ी रही और इसके भाव 82.45 रुपये रहे। वैश्विक अनिश्चितताओं के कारण कॉमेक्स वायदा में सोने और चांदी में मजबूती रही जबकि डॉलर, जो सोने के विपरीत दिशा में चलता है, में दबाव बना हुआ है। इस सप्ताह प्रमुख अर्थव्यवस्थाओं से जारी होने वाले आंकड़े कीमती धातुओं के लिए महत्वपूर्ण रहेंगे, जिससे बुलियन की कीमते सकारात्मक दायरे में बनी हुई है। निवेशकों की नज़रे इस सप्ताह फेड की बैठक पर रहेंगी जिससे कीमती धातुओं के भाव में नई दिशा देखने को मिल सकती है। हालाँकि, इस सप्ताह दुनिया भर में जोखिम की भावना थोड़ी बढ़ गई है क्योंकि चीन ने अपने सख्त कोवीड लॉकडाउन उपायों में काफी ढील दी है, दुनिया की दूसरी सबसे बड़ी अर्थव्यवस्था अब तेज गति बढ़ सकती है लेकिन, दुनिया में सख्त मौद्रिक नीति चीन की अर्थव्यवस्था के लिए चुनौती होगी। चीन द्वारा पिछले सप्ताह 2019 के बाद पहली बार रिज़र्व के लिए 32 टन सोना ख़रीदा गया है। चीन से पहले भारत, कजाकिस्तान, तुर्की और क़तर की केंद्रीय बैंक सोने की खरीद बढ़ा चुकी है। बढ़ती मुद्रास्फीति और सख्त मौद्रिक नीति के बीच प्रमुख केंद्रीय बैंको द्वारा सोने के रिज़र्व में बढ़ोतरी से कीमती धातुओं में तेज़ी बरक़रार रह सकती है।
इस सप्ताह कीमती धातुओं में तेज़ी बनी रहने की सम्भावना है। सोने में सपोर्ट 53700 रुपये पर है और रेजिस्टेंस 55100 रुपये पर है। चांदी में सपोर्ट 66000 रुपये पर है और रेजिस्टेंस 69000 रुपये पर है।
Last week, the Nifty, Sensex, and Banknifty all hit new highs, but there was some profit-taking at higher levels. We were outperforming, and now global cues are also supporting us. The good news is that the sluggish broader market has started to improve. Global cues continue to cause volatility, but this week the market's focus will shift to domestic cues like RBI policy and state election results. The outcome of the RBI policy is scheduled for 7 December, while the results of the Gujarat and Himachal Pradesh assembly elections will come on 8 December. On the global front, the US bond yields and the dollar index have fallen sharply, and markets will continue to watch their move from here. India is also benefiting from the low crude oil prices, which did not rise despite the drop in the dollar index. Institutional flows might be tepid in December; therefore, we may see major activity in the broader market.
Technically, the overall structure of the Nifty is still bullish, but some consolidation or a pullback can't be ruled out at higher levels. 18888 and 19000 are immediate resistance levels for the Nifty, and then 19300 will be the next target level. On the downside, 18600–18550 is an immediate demand zone, while 18440 is the next important support level.
Banknifty is also showing some fatigue at 43500, followed by a vertical rally, but there are no signs of weakness. 43000–42600 is an immediate and strong demand zone, while 42200–41800 is the next major support area. On the upside, 44000/44444 will be the next target levels.
If we look at the derivative data, then the long exposure of FIIs in index futures has come down to 66% from an elevated level of 75%, and the put/call ratio has dipped into the oversold territory from overbought territory in a matter of two days. Get higher earning opportunities in stock trading with fast technology and high limits.
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