victorybull

Tag: Investment

  • Multibagger stock turns ₹1 lakh to ₹1.35 crore in 10 years

    Stock market investors looking for multibagger stocks for 2022 are busy finding quality stocks that are available at discounted price after the recent bloodbath. For such investors of the secondary markets, Deepak Nitrite can be a good bet in long term, say experts. Stock market experts said that the stock has shed a lot and there can be sharp rebound in the counter from lower levels, once there is trend reversal in the markets. This chemical stock is one of the multibagger stocks in 2021 that have delivered stellar return to its shareholders in long term.

    For last six months, this multibagger stock has been under selloff heat. In last one month, Deepak Nitrite share price has come down from around ₹2660 to ₹2058 levels, sliding near 22 per cent in this time whereas in last 6 months, it has lost around 4 per cent. In year-to-date time, this chemical stock has plummeted from ₹2530 to ₹2058, losing near 19 per cent in 2022. Despite such huge selloff by shareholders, the stock has delivered 75 per cent return to its shareholders in last one year. In last 5 years, the multibagger stock has risen from ₹103.65 to ₹2058 apiece levels, logging near 1900 per cent in this period.

    Similarly, in last 10 years, this multibagger chemical stock has surged from ₹15.21 levels (close price on 17th February 2012 on NSE) to ₹2058 levels (close price on 14th February 2022 on NSE), appreciating around 135 times in this time span.

    Taking cue from Deepak Nitrite share price history, if an investor had invested ₹1 lakh in this chemical stock one month ago, its ₹1 lakh would have turned to ₹78,000 today whereas it would have turned to ₹96,000 in last 6 months. If an investor had invested ₹1 lakh in this stock one year ago, its ₹1 lakh would have turned to ₹1.75 lakh today. Likewise, if an investor had invested ₹1 lakh in this multibagger chemical stock 5 years ago and had remained invested in the counter till date, its ₹1 lakh would have turned to ₹20 lakh today.

  • Markets in a bear trap, investors lose Rs 10 lakh crore of wealth in 2 days

    Relentless selling pressure roiled the equity markets for the second consecutive session on February 14, leaving investors poorer by Rs 10 lakh crore.

    Fears of a possible invasion of Ukraine by Russia, inflating crude oil prices, and a correction in global markets spooked investors for the second day in a row.

    Equity benchmark indices fell 2 percent on Monday, in addition to the 1.3 percent drop in the previous session. The BSE Sensex plunged 1,255 points to 56,898, and the Nifty50 fell 382 points to 16,992 at 1:48pm.

    With this drop, the benchmark indices plunged into the negative territory in 2022, losing more than 2 percent against a 22 percent rally in the previous year.

    “The element of uncertainty is very high. If the Ukraine crisis aggravates into a conflict, it can inflict damage to the market in the short run. The consequences of severe sanctions on Russia in the event of a invasion can be debilitating for the Russian economy. This may restrain (Russian President Vladimir) Putin from a misadventure in Ukraine,” said VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services.

    The broader markets also corrected in line with the frontline indices as the Nifty Midcap 100 index lost 2.3 percent and Smallcap 100 index declined 2.6 percent.

    Heavy selling was seen across sectors, barring information technology (IT) and pharma that fell only 0.25 percent and 0.73 percent. The Nifty Bank, Auto, Financial Services and Metal indices tanked 3 percent each. Fast Moving Consumer Goods and Realty were down more than 2 percent each.

    Investors have lost Rs 9.57 lakh crore of wealth in just two straight sessions. BSE market’s capitalisation dropped to Rs 258.24 lakh crore on Monday, against Rs 267.81 lakh crore at the close on February 10.

    The advance-decline ratio was largely in favour of the bears as four shares gained for every share falling on the BSE. More than 570 shares hit the lower circuit on Monday, against 258 shares hitting the upper circuit.

    Experts said sentiment may remain negative until the uncertainty over tensions between Russia and Ukraine eases.  “There is a short-term negative sentiment in the markets due to the Ukraine-Russia tensions, rising crude oil prices and expectations of aggressive rate hikes by the US Fed due to decades-high inflation,” said Mohit Nigam, Head of  PMS at Hem Securities.

    The current fall in the market is due to the Ukraine crisis and the market may stage a strong rebound after the crisis eases, he said.

    Market volatility is expected to stay high, so investors should not jump in for short-term gains, rather they should adopt a long-term horizon and add quality stocks during significant dips, he said.

    Markets across Asia were under pressure with Japan’s Nikkei falling more than 2 percent. China’s Shanghai Composite, Hong Kong’s Hang Seng and South Korea’s Kospi fell 1-1.6 percent each.

  • MFs garner Rs 99,704 crore via NFOs in 2021 on sharp rally in stock market

    Mutual fund houses launched 140 new fund offerings (NFOs), which collected about Rs 1 lakh crore in 2021 on a sharp rally in the markets and an exceptional increase in the retail investors’ interest.

    However, the current volatility in the stock market might prompt asset management companies (AMCs) to limit the launch of NFOs this year, said MyWealthGrowth.com co-founder Harshad Chetanwala.

    Ankit Yadav, wealth manager (USA) and director of Market Maestro, also believes that NFOs are going to decrease in 2022 and little will come in 2023 when rates start changing.

    According to data compiled by Morningstar India, there were 140 new fund offers (including closed-end funds and ETFs) in 2021. These managed to garner a respectable Rs 99,704 crores during their inception stage.

    This was way higher than 81 NFOs floated in 2020 and cumulatively, these funds were able to garner Rs 53,703 crore.

    “Given the sharp rally in the markets along with the need to fill product gap created post-recategorisation and giving investors new themes to invest in, asset-management companies launched a plethora of new schemes across the year (2021),” Morningstar noted.

    Usually, NFOs come during a surging market when investor sentiments are high and optimistic. The stock market along with the positive investor sentiments kept surging post-March 2020. It is from this point in time the launch of NFOs started, Chetanwala said.

    The NFOs were floated to capitalise on the mood of investors and attract their investment as they were willing to invest at that time, he added.

    “The main fact as a wealth manager I see in low rate scenario is that the borrowing becomes easy with easy money fluctuating around businesses tend to bring their IPOs and AMC (assets management company) businesses are inclined NFOs,” Market Maestro’s Ankit Yadav said.

    In 2020, the central banks throughout the globes cut the rates and made rates hit all-time lows in the 100-year history. Rates remain unchanged in 2021. That’s why to utilise low rates, AMC businesses bring NFOs, he added.

    The maximum number of funds (25) were launched in the index fund segment, which amassed Rs 4,082 crore, followed by other ETFs (24), which collected Rs 7,482 crore and fixed-term plans (23), which mobilised Rs 5,057 crore.

    In addition, investors were attracted to international funds and sectoral or thematic funds. The AMCs launched 12 sectoral or thematic funds, which raised Rs 13,237 crore and floated 12 overseas funds of funds, which mopped up Rs 6,351 crore.

    Experts believe that the dominance of index funds and ETFs (exchange-traded funds) within NFOs is not surprising, owing to a couple of factors.

    Existing AMCs have no restrictions in the number of passive products they can manufacture, whereas there are limits on other types of funds, Vasanth Kamath, founder and CEO at Smallcase, said.

    “Also, as investors (across retail, HNIs, institutional) are broadening and diversifying their portfolios, they’re preferring to take an index approach to new exposures and asset types, making it both efficient and simple versus having to build their own frameworks and strategies on these universes,” he said.

    In addition, the staggering growth of new demat accounts requires fund houses to offer a larger, diverse line-up of ETFs that were missing in the exchange-traded form factor, he added.

    Another factor for higher NFOs in the index category could be strong performance as the index delivered over 20 per cent last year.

    Further, the penetration of Indian investors towards index or ETF is low. So, AMCs try to capture their market share, Market Maestro’s Yadav said.

  • Zomato to invest $400 million more in quick commerce; will set up a lending biz for restaurants

    Online food delivery firm Zomato Ltd on Thursday said its revenue from operations for the December quarter rose from both a year earlier and sequentially, even as its loss shrank.

    Revenue from operations for the fiscal third quarter rose to Rs 1,112 crore from Rs 1,024.2 crore in the July-September period and Rs 609.4 crore a year earlier. Loss narrowed dramatically to Rs 67.2 crore, compared with Rs 434.9 crore a quarter earlier and Rs 351.3 crore in the previous-year period.

     

    Online food delivery firm Zomato Ltd on Thursday said its revenue from operations for the December quarter rose from both a year earlier and sequentially, even as its loss shrank.

    Revenue from operations for the fiscal third quarter rose to Rs 1,112 crore from Rs 1,024.2 crore in the July-September period and Rs 609.4 crore a year earlier. Loss narrowed dramatically to Rs 67.2 crore, compared with Rs 434.9 crore a quarter earlier and Rs 351.3 crore in the previous-year period.

     

    Zomato said it saw 9% growth in revenue from operations on a quarterly basis, while its customer delivery charges shrank 22%.

    “This was driven by a Rs 7.50 per order reduction in customer delivery charges in Q3 FY22 as compared to Q2 FY22,” Zomato said, explaining that it re-distributed its growth investments more in favour of discounts on customer delivery charges compared with food coupons.

    “We are seeing higher return on investment with discounted delivery charges as compared to coupons. As a result, discounts per order reduced by Rs 5 per order in the last quarter as compared to Q2 FY22,” it said.

    Zomato reiterated its focus on the quick-commerce segment and added that it will invest an additional $400 million in the space in the next two years.

    The Gurgaon-based company also expanded to 180 new cities, taking its presence in India to more than 700 cities.
    Zomato’s adjusted revenue — a combination of revenue from operations and customer delivery charges — increased 78% on year to Rs 1,420 crore. As reported by ET earlier, the company saw a massive increase in food order volumes on New Year’s Eve, resulting in gross order value (GOV) of $18 million, 78% higher than the same day last year.
    Zomato’s GOV grew by 84.5% Y-o-Y and 1.7% Q-o-Q to Rs 5,500 crore in the December quarter.

    Zomato said over the years, unit economics in its food delivery business has improved with scale. Contribution margin (as a percentage of GOV) has improved steadily from a negative 15% in 2019 to 1% today, it said. “A 5% contribution margin in our food delivery business (at the current scale) should get us to Ebitda break-even as a company (covering all common corporate costs as well).”

  • Shares of this realty firm zoomed 165% in 6 weeks, trade at 7-year high

    Shares of D B Realty hit an over seven-year high of Rs 116.70, and was locked at the 5 per cent upper circuit on the BSE on Wednesday, after its board approved raising funds via issuing 50 million convertible warrants to Rekha Jhunjhunwala and others.

    The stock of Mumbai-based real estate company has been locked at the 5 per cent upper circuit for the eight straight trading day. It quoted at its highest level since June 2014. The counter has seen huge trading volumes, with a combined 2.1 million equity shares changing hands. There were pending buy orders for 1.6 million shares on the NSE and BSE.

    In the past six weeks, the stock price of D B Realty has zoomed 165 per cent from Rs 44 on December 29, 2021. In comparison, the S&P BSE Sensex was down 1 per cent during the same period.

    D B Realty in an exchange filing today said, its board approved raising of funds through issue of 50 million warrants convertible into equivalent number of equity shares of the face value of Rs 10 each to non-promoter investors on a preferential basis. This in addition to 77 million warrants that had already approved in board meeting held on February 3, 2022, the company said.

    DB Realty will allot 10 million warrants each to ace investor Rakesh Jhunjhunwala’s wife Rekha Jhunjhunwala and M/s RARE Investments, a partnership firm represented through its partner Rekha Jhunjhunwala.

    Rekha Rakesh Jhunjhunwala held 5 million or 2.06 per cent stake in D B Realty as on December 31, 2021, the shareholding pattern data shows.

    Besides these two, the company will allot 5 million warrants each to Lotus Family Trust represented by its Trustee namely Barclays Wealth Trustees (India) Private Limited and M/s KIFS Dealers, a partnership firm represented through its Partner Khandwala Finstock Private Limited. The company will also allot 10 million warrants each to Abhay Chandak and Aditya Chandak.

    An amount equivalent to at least 25 per cent of the warrant issue price shall be payable at the time of subscription and allotment of each warrant and the balance shall be payable by the warrant holder(s) on the exercise of the warrant(s) at any time within a period of 18 months from the date of allotment, the company said.

    On Friday, February 4, 2022, the Mumbai-based real estate major Godrej Properties said it had decided not to go ahead with the proposed investment in DB Realty. The company said the decision was taken after receiving shareholders’ feedback.

    The day before, Godrej Properties had announced a plan to invest Rs 400 crore for around 10 per cent stake in DB Realty and another Rs 300 crore to set up a joint platform for undertaking slum redevelopment projects. The total size of the joint platform of Godrej Properties and DB Realty would have been Rs 600 crore, with each party contributing Rs 300 crore.

  • Shares of this realty firm zoomed 165% in 6 weeks, trade at 7-year high

    Shares of D B Realty hit an over seven-year high of Rs 116.70, and was locked at the 5 per cent upper circuit on the BSE on Wednesday, after its board approved raising funds via issuing 50 million convertible warrants to Rekha Jhunjhunwala and others.

    The stock of Mumbai-based real estate company has been locked at the 5 per cent upper circuit for the eight straight trading day. It quoted at its highest level since June 2014. The counter has seen huge trading volumes, with a combined 2.1 million equity shares changing hands. There were pending buy orders for 1.6 million shares on the NSE and BSE.

    In the past six weeks, the stock price of D B Realty has zoomed 165 per cent from Rs 44 on December 29, 2021. In comparison, the S&P BSE Sensex was down 1 per cent during the same period.

    D B Realty in an exchange filing today said, its board approved raising of funds through issue of 50 million warrants convertible into equivalent number of equity shares of the face value of Rs 10 each to non-promoter investors on a preferential basis. This in addition to 77 million warrants that had already approved in board meeting held on February 3, 2022, the company said.

    DB Realty will allot 10 million warrants each to ace investor Rakesh Jhunjhunwala’s wife Rekha Jhunjhunwala and M/s RARE Investments, a partnership firm represented through its partner Rekha Jhunjhunwala.

    Rekha Rakesh Jhunjhunwala held 5 million or 2.06 per cent stake in D B Realty as on December 31, 2021, the shareholding pattern data shows.

    Besides these two, the company will allot 5 million warrants each to Lotus Family Trust represented by its Trustee namely Barclays Wealth Trustees (India) Private Limited and M/s KIFS Dealers, a partnership firm represented through its Partner Khandwala Finstock Private Limited. The company will also allot 10 million warrants each to Abhay Chandak and Aditya Chandak.

    An amount equivalent to at least 25 per cent of the warrant issue price shall be payable at the time of subscription and allotment of each warrant and the balance shall be payable by the warrant holder(s) on the exercise of the warrant(s) at any time within a period of 18 months from the date of allotment, the company said.

  • Indian stock markets can fall another 10%

    Budget euphoria is slowly fading away on Dalal Street as global headwinds stare in the eye. Geopolitical tensions involving Ukraine and Russia, coupled with fear of easy money drying up amid soaring inflation, are giving a rude reality check to stock market investors. Yesterday, the BSE Sensex plunged over 1,300 points in intra-day trade while the Nifty50 slipped below the 17,150 level. The Nifty 50 and BSE-Sensex tumbled for a third straight day and moved below the highs made on Budget-day.

    The indices ended nearly 2% lower at 17,214 and 57,621, respectively. With this, the markets have turned negative for the year, and are down 1 percent YTD.U R Bhat, who is co-founder & director at Alphaniti Fintech, believes markets can fall another 3-5% from here on as an actual clash on the Russian border is not priced in at all. Brent crude prices are already up 16% in a month amid simmering tensions between Russia and NATO over Ukraine. Brent is above $93 per barrel mark but a full-scale war can take it past the $100 per barrel mark, analysts worry. Most analysts, including those at Rabobank International and BofA Securities, see Brent hitting the $125 mark by June 2022. On their part, the benchmark indices – the S&P BSE Sensex and the Nifty50 – have slipped around 3% each in the past month. On the contrary, the Nifty Energy index that comprises upstream players like Reliance Industries and ONGC has outperformed with a rise of nearly 6% as oil prices rose during this period. Going forward, market mavens suggest investors stay stock-specific and tread cautiously in the markets. These global factors will continue to dictate market trends on Tuesday as well. Domestically, investors will track the three-day RBI policy meeting, which will begin later today. That apart, the December quarter result of prominent companies, including Bharti Airtel, Escorts, Indraprastha Gas, IRCTC, and Godrej Consumer products will be on investor radar. Moreover, shares of Adani Wilmar will also debut on the bourses today.

  • Tube Investment Consolidated December 2021 Net Sales at Rs 3,410.10 crore, up 100.6% Y-o-Y

    Net Sales at Rs 3,410.10 crore in December 2021 up 100.6% from Rs. 1,699.99 crore in December 2020.

    Quarterly Net Profit at Rs. 278.88 crore in December 2021 up 159.79% from Rs. 107.35 crore in December 2020.

    EBITDA stands at Rs. 466.45 crore in December 2021 up 92.06% from Rs. 242.87 crore in December 2020.

    Tube Investment EPS has increased to Rs. 14.46 in December 2021 from Rs. 5.71 in December 2020.

    Tube Investment shares closed at 1,796.50 on February 04, 2022 (NSE)

  • Markets drop for a second day on global cues; eke out 2.5% weekly gain

    Benchmark indices fell for a second day on Friday but ended the week with a 2.5 per cent gain. Global investor sentiment was hit by hawkish comments by the European Central Bank (ECB), disappointing earnings from US technology giants and a simmering crisis at Ukraine’s border.

    The Sensex fell 143 points, or 0.24 per cent, to end at 58,645. The index gained 1,444 points, or 2.5 per cent, during the week after the capex push announced in the Union Budget drove optimism of revival in economic growth and corporate earnings. The Nifty 50 index fell 44 points, or 0.25 per cent, to finish at 17,516.3.

    In the preceding two weeks, domestic markets had crashed 7 per cent spooked by the US Federal Reserve’s decision to start raising interest rates to cool down inflation. On Thursday, the ECB joined the Fed in taking a hawkish turn as its President Christine Lagarde no longer ruled out an interest-rate hike this year. Meanwhile, the Bank of England Thursday raised interest rates back-to-back for the first time since 2004 as it began the process of quantitative tightening.

    Domestic markets started this week on a strong note but gave up some gains amid these headwinds.

    Earlier this week, the Finance Minister Nirmala Sitharaman announced plans to increase capital spending by 35 per cent to Rs 7.5 trillion in the next financial year, seeking to bolster the economy’s recovery after disruptions from the pandemic.

    “Domestic indices had a bull run during the first half of the week as the Budget was in line with market expectation. As global cues turned in favour of bears, the domestic market turned volatile towards the end of the week. US markets were under pressure following weak earnings numbers reported by Meta. The European market also lacked strength as the Bank of England imposed a back to back rate hike while the most dovish European Central Bank acknowledged the risk of rising inflation signaling a rate hike in near future,” said Vinod Nair, Head of Research at Geojit Financial Services.

    Overseas investors sold shares worth Rs 2,268 crore, while domestic institutions were net-buyers to the tune of Rs 622 crore.

    “Market is witnessing higher volatility but the sentiment has improved post the Budget. Now the focus would shift to the rising interest rate regime globally and consequent higher bond yields. Surge in oil price to seven-year high of $92 per barrel would present further challenge for inflation. The December quarter earnings has been good so far as companies largely delivered on the earnings front, despite the unprecedented inflationary pressures from rising commodity and energy prices. The corporate earnings delivery is highly crucial, in a rising rate regime which is getting well reflected in the market with poor performers getting battered severely,” said Siddhartha Khemka, Head – Retail Research, Motilal Oswal Financial Services.

    As per Bloomberg data, out of the 33 Nifty 50 companies that have announced results so far, 18 either met or exceeded analyst estimates, 13 missed and two can’t be compared.

  • Markets drop for a second day on global cues; eke out 2.5% weekly gain

    Benchmark indices fell for a second day on Friday but ended the week with a 2.5 per cent gain. Global investor sentiment was hit by hawkish comments by the European Central Bank (ECB), disappointing earnings from US technology giants and a simmering crisis at Ukraine’s border.

    The Sensex fell 143 points, or 0.24 per cent, to end at 58,645. The index gained 1,444 points, or 2.5 per cent, during the week after the capex push announced in the Union Budget drove optimism of revival in economic growth and corporate earnings. The Nifty 50 index fell 44 points, or 0.25 per cent, to finish at 17,516.3.

    In the preceding two weeks, domestic markets had crashed 7 per cent spooked by the US Federal Reserve’s decision to start raising interest rates to cool down inflation. On Thursday, the ECB joined the Fed in taking a hawkish turn as its President Christine Lagarde no longer ruled out an interest-rate hike this year. Meanwhile, the Bank of England Thursday raised interest rates back-to-back for the first time since 2004 as it began the process of quantitative tightening.

    Domestic markets started this week on a strong note but gave up some gains amid these headwinds.

    Overseas investors sold shares worth Rs 2,268 crore, while domestic institutions were net-buyers to the tune of Rs 622 crore.

    “Market is witnessing higher volatility but the sentiment has improved post the Budget. Now the focus would shift to the rising interest rate regime globally and consequent higher bond yields. Surge in oil price to seven-year high of $92 per barrel would present further challenge for inflation. The December quarter earnings has been good so far as companies largely delivered on the earnings front, despite the unprecedented inflationary pressures from rising commodity and energy prices. The corporate earnings delivery is highly crucial, in a rising rate regime which is getting well reflected in the market with poor performers getting battered severely,” said Siddhartha Khemka, Head – Retail Research, Motilal Oswal Financial Services.

    As per Bloomberg data, out of the 33 Nifty 50 companies that have announced results so far, 18 either met or exceeded analyst estimates, 13 missed and two can’t be compared.