Swastika Investmart Financial Highlights 2024–25

सोने और चांदी के भाव में पिछले सप्ताह भी गिरावट दर्ज की गई है। कीमती धातुओं के भाव कोरोना वायरस के नए संस्करण ओमीक्रॉन आने के कारण निचले स्तरों पर सपोर्ट लेते दिखे और एक सीमित दायरे में रहे। साउथ अफ्रीका में बदले हुए वायरस के इस रूप के कारण निवेशक जोखिम भरी संपत्ति में निवेश से पीछे हटते दिखे।

वायरस के नए संस्करण का फैलाव कई देशो में हो चुका है और इसके बढ़ते प्रभाव के कारण कीमती धातुओं की मांग मजबूत होने की सम्भावना बढ़ने लगी है। भारत में भी ओमीक्रॉन के मामले मिल चुके है और प्रभावितो की कोई ट्रेवल हिस्ट्री नहीं थी जिससे यह अनुमान है की इसके फैलने की गति तेज़ है। आने वाले दिनों में वायरस का प्रभाव बढ़ता है तो यह सोने के भाव को सपोर्ट कर सकता है। अभी इसके कोई ज्यादा घातक परिणाम  सामने नहीं आये है लेकिन यह अर्थव्यवस्था की गति को धीमा करने में सक्षम है जिसके कारण कीमती धातुओं में निवेश की मांग बढ़ सकती है।

जबकि अमेरिकी फेड के इन संकेतो से कि मुद्रास्फीति के दबाव को कम करने के लिए उम्मीद से पहले परिसंपत्ति की कमी और ब्याज दरों में वृद्धि की गति को तेज करेगा, जिससे सोने और चांदी के भाव में दबाव बना हुआ है। इस बीच, गुरुवार को जारी अमेरिकी आंकड़ों से पता चला है कि पूरे सप्ताह में 222,000 प्रारंभिक बेरोजगार दावे दायर किए गए, जो अनुमान से बेहतर रहे।

जबकि अमेरिकी नॉनफार्म एम्प्लॉयमेंट चेंज के आंकड़े अनुमान से कमजोर दर्ज किये गए जिससे सोने और चांदी के भाव को सपोर्ट मिला है। सोने के विपरीत चलने वाला, डॉलर में अभी मजबूती बनी हुई है जबकि अमेरिकी बॉन्ड यील्ड में अस्थिरता है। इस सप्ताह मुद्रास्फीति के आंकड़े कीमती धातुओं के लिए महत्वपूर्ण होंगे।

तकनीकी विश्लेषण

इस सप्ताह सोने और चांदी के भाव सीमित दायरे में रह सकते है। फ़रवरी वायदा सोने में 47000 रुपए पर सपोर्ट और 48600 रुपए पर प्रतिरोध है। मार्च वायदा चांदी में   59800 रुपए पर सपोर्ट और 62700 रुपए पर प्रतिरोध है।

IPO Note : RATEGAIN TRAVEL TECHNOLOGIES LTD.

KEY MANAGERIAL PERSONNEL

⮚ Bhanu Chopra is the Chairman and Managing Director of the Company. He is also one of the Promoters of the Company and has been a member of the company’s Board since incorporation. He is an entrepreneur with experience of over 15 years.

⮚ Megha Chopra is an Executive Director of the Company. She is also one of the Promoters of the Company and has been a member of the Company’s Board since incorporation. Prior to her directorship in this Company, she was associated with HCL Infosystems Limited.

⮚ Nishant Kanuru Rao is a Non-Executive Nominee Director of the Company. Currently, he is a partner at Avataar  Venture Partners, which was founded by him in 2019.

⮚ Girish Paman Vanvari is an Independent Director of the Company. He was appointed to the Board of the Company on June 29, 2021.

Previously, he has been associated with KPMG, India as the national head of tax.  Currently, he is a partner at Transaction Square, which was founded by him in 2018.

⮚ Aditi Gupta is an Independent Director of the Company. She was appointed to the Board of the Company on  July 15, 2021. She has experience of over 10 years as a company secretary.

⮚ EC Rajakumar Konduru is an Independent Director of the Company. He was appointed to the Board of the  Company on July 15, 2021. He is a venture capitalist with an experience of over 13 years in equity investments.

COMPETITIVE STRENGTHS

⮚ Marquee global customers with long-term relationships

⮚ Innovative AI-driven industry-relevant SaaS solutions.

⮚ Diverse and comprehensive portfolio of revenue maximization and business-critical solutions

⮚ Strong financial performance with a track record of successful acceleration post acquisitions

⮚ Strong Global and diverse management team with relevant technology and domain expertise and focus on  employee welfare

KEY STRATEGIES

⮚ New product development capabilities.

⮚ Continue to scale DaaS and Distribution offerings through cross-selling and geographical expansion in existing and  adjacent verticals

⮚ Focus on MarTech solutions for the hospitality and travel sector

⮚ Continue to leverage unique data assets to create new AI product offerings

⮚ Pursue strategic investment and acquisition opportunities

KEY CONCERNS

⮚ The company is running at a loss for the last two financial years.

⮚ The hotel and travel industry has suffered a lot due to the COVID epidemic.

⮚ The activities of a small number of marketplaces account for a substantial percentage of their revenue.

⮚ Exchange rate changes may negatively affect their results of operations.

⮚ Failure to defend their intellectual property rights may have a negative impact on their business and brand

⮚ Failure to deliver excellent customer service and assistance may have a negative impact on their existing client relationships.

COMPARISON WITH LISTED INDUSTRY PEERS

There are no listed companies in India that engage in a business similar to that of the Company. Accordingly, it is not possible to  provide an industry comparison in relation to the Company

FINANCIALS (RESTATED CONSOLIDATED)

Particulars (Rs. In Millions) FY 2021 FY 2020 FY 2019Equity Share Capital 6.55 6.55 6.55Instrument entirely equity in nature 1.48 0.85 0.85Other Equity 2,441.18 1,369.84 1,424.89Net Worth 2449.21 1377.24 1432.29Total Borrowings 1117.93 1158.08 244.19Revenue from Operations 2,507.93 3,987.14 2,615.74EBITDA 194.57 338.59 328.84Profit Before Tax (246.28) (177.62) 94.87Net Profit for the year (285.75) (201.04) 110.34

Mutual funds have emerged as a popular investment option for people looking to grow their wealth. They offer the benefit of professional management, diversification, and the potential for attractive returns. Whether you’re a beginner or an experienced investor, understanding the various types of mutual funds can help you make insightful decisions that align with your financial goals.

In this guide, we’ll explore the different types of mutual funds based on asset class, investment goals, risk appetite, and other factors.

Types of Mutual Funds

These funds also include some subcategories which we will discuss below.

1. Equity Mutual Funds

Equity mutual funds are primarily focused on investing in stocks. The main objective is capital appreciation over the long term. These funds are considered high-risk, but they also offer the potential for higher returns.

Types of Equity Mutual Funds:

• Large-Cap Funds: These funds invest in well-established, large companies with a proven track record. They tend to be more stable but offer moderate returns.
• Mid-Cap Funds: Mid-cap funds focus on companies with medium-sized market capitalizations. These companies have growth potential, offering a higher risk-reward ratio.
• Small-Cap Funds: Small-cap funds invest in smaller companies with the potential for significant growth. These funds carry higher risks but can offer substantial returns if the companies perform well.
• Sectoral/Thematic Funds: These funds invest in specific sectors like technology, healthcare, or real estate. Their performance is closely tied to the growth of that particular sector.
• ELSS (Equity-Linked Savings Scheme): This is a tax-saving mutual fund that qualifies for tax deductions under Section 80C of the Income Tax Act. It comes with a lock-in period of three years.

2. Debt Mutual Funds

Debt mutual funds invest in fixed-income instruments like bonds, debentures, government securities, and treasury bills. They are less volatile than equity funds, making them ideal for conservative investors looking for steady income rather than aggressive growth.

Types of Debt Mutual Funds:

• Liquid Funds: These funds invest in debt instruments with a short maturity period of up to 91 days. They are ideal for parking surplus money for short durations.
• Short-Term and Ultra Short-Term Debt Funds: These funds invest in debt securities with shorter durations, generally up to three years. They are less affected by interest rate changes.
• Long-Term Debt Funds: These funds invest in securities with a longer duration, offering potentially higher returns but with increased sensitivity to interest rate movements.
• Gilt Funds: Gilt funds invest in government securities. These are ideal for risk-averse investors as they come with minimal credit risk.
• Credit Risk Funds: These funds invest in low-rated corporate bonds, which offer higher yields but come with a higher credit risk.
• Dynamic Bond Funds: These funds have the flexibility to adjust the portfolio's duration based on interest rate movements, making them suitable for changing market conditions.

3. Hybrid Mutual Funds

Hybrid mutual funds, also known as balanced funds, invest in both equity and debt instruments, offering a balanced risk-return trade-off. These funds are suitable for investors looking for moderate risk with the potential for growth as well as regular income.

Types of Hybrid Funds:

• Aggressive Hybrid Funds: These funds allocate a significant portion (around 65-80%) of the portfolio to equities and the rest to debt, offering higher growth potential.
• Conservative Hybrid Funds: Conservative hybrid funds have a greater allocation to debt instruments (around 75-90%) and a smaller portion to equities, making them less volatile.
• Balanced Advantage Funds: These funds dynamically manage the allocation between equity and debt based on market conditions, aiming to minimize risks while optimizing returns.

4. Index Funds

Index funds replicate the performance of a specific stock market index like the Nifty 50 or the Sensex. They offer diversification and are ideal for investors looking for long-term returns without the risk of active stock picking. Since these funds are passively managed, they come with lower expense ratios compared to actively managed funds.

5. Exchange-Traded Funds (ETFs)

Exchange-Traded Funds (ETFs) are similar to index funds but are traded on the stock exchange like individual stocks. They offer the benefits of both mutual funds and direct stock trading, including diversification and liquidity. ETFs typically have lower expense ratios and can be bought or sold at any time during market hours.

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How to Choose the Right Mutual Fund?

Selecting the right mutual fund depends on various factors, including:

• Investment Goals: Whether you're looking for short-term gains, long-term growth, or regular income, your financial goals should guide your choice of mutual funds.
• Risk Appetite: Equity funds carry higher risks but offer greater returns, while debt funds are more stable but with lower returns.
• Time Horizon: For short-term goals, debt funds or liquid funds are ideal, while for long-term goals, equity or hybrid funds may be more suitable.
• Expense Ratios: Lower expense ratios mean more of your money is being invested, so it’s important to consider this when choosing between similar funds.

Conclusion

Understanding the different types of mutual funds is essential to making the right investment choices. Whether you're looking for aggressive growth through equity funds or stable returns via debt funds, there’s a mutual fund for every investor. By aligning your investment choices with your financial goals, risk tolerance, and time horizon, you can build a portfolio that helps you achieve your financial objectives.

Introduction

Welcome! Today, we’re going to explore the world of bonds, a key component of the financial markets. Bonds are essentially loans made by investors to borrowers, usually corporations or governments. In return, the borrower agrees to pay interest over a specified period and repay the principal at maturity. Let's break down the different types of bonds you might encounter.

1. Government Bonds

Government bonds are issued by a national government and are considered one of the safest investments since they are backed by the government's credit. In India, these are known as Government Securities (G-Secs).

• Example: Indian Government Bonds, such as the 10-Year G-Sec, offer a fixed interest rate and are a preferred choice for conservative investors.

2. Corporate Bonds

Corporate bonds are issued by companies to raise capital. They typically offer higher interest rates than government bonds to compensate for the increased risk.

• Example: Reliance Industries issues corporate bonds that offer investors a higher return compared to government bonds but with a slightly higher risk.

3. Municipal Bonds

Municipal bonds are issued by local government bodies, such as states or municipalities, to finance public projects like schools or infrastructure. These bonds often provide tax advantages to investors.

• Example: In the U.S., municipal bonds are common, but in India, similar bonds are less prevalent. However, urban development bonds issued by state governments can be considered a counterpart.

4. Zero-Coupon Bonds

Zero-coupon bonds do not pay periodic interest. Instead, they are issued at a discount to their face value and mature at par. The difference between the purchase price and the face value represents the investor's return.

• Example: Treasury Bills (T-Bills) in India are short-term zero-coupon bonds issued by the government, typically maturing in less than a year.

5. Convertible Bonds

Convertible bonds offer the option to convert the bond into a predetermined number of the company's equity shares. This feature provides potential upside if the company's stock performs well.

• Example: A company like Tata Motors might issue convertible bonds that can be converted into equity shares after a certain period, allowing investors to participate in the company’s growth.

6. Inflation-Linked Bonds

These bonds are designed to protect investors from inflation. The principal and interest payments are adjusted based on inflation rates, ensuring that the purchasing power of the investment is maintained.

• Example: The Government of India issues Inflation-Indexed Bonds (IIBs) that adjust the principal amount based on the inflation rate, protecting investors from the eroding effects of inflation.

7. Callable and Puttable Bonds

• Callable Bonds: These bonds can be "called" or redeemed by the issuer before the maturity date, usually when interest rates drop.
• Puttable Bonds: These allow investors to "put" or sell the bond back to the issuer before maturity, typically if interest rates rise or if they need liquidity.
• Example: A callable bond issued by a corporation may be redeemed if interest rates decline, allowing the company to refinance at a lower rate.

8. Foreign Bonds

Foreign bonds are issued in a country by a non-domestic entity and are denominated in the currency of the country where they are issued.

• Example: Masala Bonds are a type of foreign bond issued by Indian companies in Indian Rupees but sold to foreign investors.

Conclusion

Bonds are a versatile investment option, offering something for every type of investor, from the risk-averse to those seeking higher returns. Whether you’re interested in the safety of government bonds or the potential growth from corporate and convertible bonds, understanding the different types of bonds can help you make more updated investment decisions.

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Introduction

Welcome! Today, we’re delving into the intriguing concept of reverse stock splits. Though it might sound complex, it's a straightforward concept once you break it down. A reverse stock split is a corporate action where a company reduces the number of its outstanding shares. This process effectively increases the share price proportionally. Let’s explore what this means and why companies might choose to perform a reverse stock split.

What is a Reverse Stock Split?

In a reverse stock split, a company consolidates its shares. For instance, in a 1-for-10 reverse stock split, every 10 existing shares are merged into 1 new share. This reduces the total number of shares outstanding but increases the share price accordingly.

Why Do Companies Perform Reverse Stock Splits?

1. Increase Share Price: Companies often use reverse stock splits to boost their share price. This is especially useful for maintaining a minimum share price requirement for listing on stock exchanges. A higher share price can help avoid delisting from major stock exchanges.
2. Improve Perception: A higher share price can positively affect how investors and analysts view the company. It may attract more investment and improve the company's overall market perception.
3. Reduce Volatility: By consolidating shares, companies can reduce the volatility of their stock price. This makes the stock less susceptible to small price fluctuations, which can be beneficial for both the company and its investors.

How Does a Reverse Stock Split Work?

Here’s a simple example to illustrate:

• Before the Split: Imagine a company with 1,000,000 shares outstanding, each priced at ₹10. The total market capitalization is ₹10,000,000.
• After a 1-for-10 Reverse Split: The company will have 100,000 shares outstanding, each priced at ₹100. The total market capitalization remains ₹10,000,000.

Effects on Shareholders

1. Shareholder Equity: Shareholders will own fewer shares after the split. However, the total value of their investment remains the same, assuming no other market changes. For example, if you owned 1,000 shares priced at ₹10 each before the split, you would own 100 shares priced at ₹100 each after the split.
2. Stock Price: The price per share increases proportionally to the reverse split ratio. While the price per share rises, the overall value of the investment does not change immediately.
3. Future Trading: A higher share price might make the stock more attractive to institutional investors and reduce the risk of being delisted from major exchanges. This could lead to increased trading activity and improved market perception.

Risks and Considerations

1. Market Perception: Reverse stock splits can sometimes be viewed negatively. They might signal that a company is struggling or trying to artificially boost its stock price. This perception can affect investor confidence.
2. Impact on Liquidity: Reducing the number of shares can impact trading liquidity. Fewer shares available in the market might make it harder for investors to buy or sell shares, potentially leading to wider bid-ask spreads.

Examples of Reverse Stock Splits

1. Company A: Tata Motors: Tata Motors performed a 1-for-10 reverse stock split in 2018. Before the split, the share price was around ₹40, and after the split, it was adjusted to ₹400. The split was intended to increase the share price and improve liquidity.
2. Company B: Zee Entertainment: Zee Entertainment executed a 1-for-5 reverse stock split in 2022. Before the split, the share price was approximately ₹30, and after the split, it increased to ₹150. This move aimed to meet the listing requirements and attract more institutional investors.

Conclusion

Reverse stock splits are strategic actions by companies to manage their share price and market perception. While they can offer benefits such as increased share price and improved investor perception, they also come with risks and considerations. It’s essential to stay informed and understand the broader context when evaluating the impact of reverse stock splits on your investments.

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Sapphire Foods India limited one of YUM’s franchisee operators in the Indian subcontinent. They are also Sri Lanka’s largest international QSR chain, in terms of revenue. Company also established a presence in the Maldives. Company-owned and operated 209 KFC restaurants in India and the Maldives, 239 Pizza Hut restaurants in India, Sri Lanka and the Maldives, and two Taco Bell restaurants in Sri Lanka. They operate their restaurants in high traffic and high visibility locations in key metropolitan areas and cities across India and develop new restaurants in new cities as part of their brand and food category expansion. The company has an in-house supply chain function and works with vendor partners for food ingredients, packaging, warehousing, and logistics. The company operates warehouses across 5 Indian cities and has invested in building technology solutions in their restaurants. The company employs YUM brand's global online and digital channel solutions to enhance customer experience and achieve operational efficiency and financial control.

• Food services is a key segment in the Indian economy, with a market size of US$26.8 billion in the financial year 2021 growth of the food services sector in India is expected to grow more.
• Company’s franchisee Arrangement also provides a right to use YUM’s system and system property covering all aspects of business operations, as well as the flexibility to undertake, with YUM’s approval, local or regional promotions, while meeting YUM’s global quality assurance standards.
• The organized market, consisting of chain and organized standalone outlets, is expected to increase its share in the food services market in India from 37.8% in financial year 2020 to 51.3% in financial year 2025.

Outlook & Valuation:

The Company recorded a loss of Rs (99.89) cr. in the financial year FY21 against a loss of Rs (159.25) cr. in the previous year FY20. Revenue from operations in the same period declined to Rs 1,019.62 cr. in FY21 from Rs 1,340.41 cr. in FY20 due to the Covid-19 crisis. The issue is priced at a P/BV of 14.63 based on its NAV of Rs. 80.67 as of June 30. Sapphire Foods is a Leading quick-service restaurant brand with a large market presence and size. Their initial public offer will be a pure offer for the sale of its equity shares; also the company is loss-making in the last three financial years. The company aims to break even in the near future. We are in a bull run of IPO's where new edge businesses are on the front seat. IPO euphoria might lead to listing gain as the IPO is arriving at a P/S of 7x which is half to its peers however we expect the peers to outperform Sapphire Food over the long run. Thus we assign a "SUBSCRIBE" rating with a cautious view.

KEY MANAGERIAL PERSONNEL

• Sanjay Purohit is the Whole Time Director and Group CEO of the Company. He has over 30 years of work experience across consumer product categories including food and apparel retail, packaged food, and paints.
• Sunil Rewachand Chandiramani is the Chairman and Independent Director of the Company. He has experience of over 29 years and has worked in the field of accounting and advisory services.
• Sumeet Subhash Narang is a Non-Executive Director of the Company as a nominee of Sapphire Foods Mauritius Limited.
• Manish Mehta is a Non-Executive Director of the Company as a nominee of Sapphire Foods Mauritius Limited. He has experience of over 17 years.
• Vikram Ranjan Agarwal is a Non-Executive Director of the Company as a nominee of QSR Management Trust for the past 13 years and has worked in the field of private equity.
• Kabir Kishin Thakur is a Non-Executive Director of the Company. He has experience of over 14 years
• Deepa Gopalan Wadhwa is an Independent Director of the Company.
• Anu Ram Aggarwal is an Independent Director of the Company.

COMPETITIVE STRENGTHS

• Leading QSR brands with a substantial market presence and scale
• Strong relationship with YUM
• Continuous focus on delivering great customer experience
• Operational excellence
• Scalable new restaurant economic model for expansion
• Great place to work led by experienced management team and backed by institutional capital

KEY CONCERNS

• Company reported loss for the last three financial years and may incur additional losses in the future.
• The Coronavirus disease (COVID19) pandemic has substantially affected and may continue to affect the business
• Company will not receive any proceeds from the Offer for Sale. The Selling Shareholders will receive the net proceeds from the Offer for Sale.
• Company incurred indebtedness and may incur additional indebtedness in the future which could affect their ability to obtain future financing or pursue any growth strategy.
• There are material outstanding legal proceedings involving the Company, Subsidiaries, and Directors...