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61

India Stocks and Shares / Axis Securities Diwali Muhurat Picks

« Last post by resh on November 07, 2020, 08:45:15 PM »

Here are the Top Picks from Axis Securities for this Diwali Muhurat Investment

Stock & its Target Price is as under
ICICI Bank 504
STATE BANK OF INDIA 261
CAN FIN HOMES  515
TECH MAHINDRA  975
Bharti Airtel 676
SECURITY & INTELLIGENCE 450
Eicher Motors 2400
DALMIA BHARAT 1083
VARUN BEVERAGES 865
AARTI INDUSTRIES 1263
DHANUKA AGRITECH 880

62

Equity Investments, Fundamental Research and Sectors Review / Kotak Securities Top 10 Muhurat Picks

« Last post by resh on November 05, 2020, 07:28:27 PM »

The Top 10 Muhurat Picks of Kotak Securities are as under along with their Target Price.

Axis Bank 600
Ambuja Cement 300
Bajaj Auto 3900
Bajaj Finserv 8000
Bharti Airtel 710
Hindustan Zinc 295
Infosys 1400
ITC 260
L&T 940
SBI Life 1100

63

Mutual Funds in India / How to Find AUM of Direct Vs Regular Plan ?

« Last post by resh on October 28, 2020, 04:29:42 PM »

With a lobby of Mutual Fund Distributors & AMC working like a cabal, SEBI intervened to break the same by being strict on Foreign Trips, Stocks, Gift & Cheques Paid out to Mutual Fund Distributors. Along with SEBI diktat, Mutual Fund Online Platforms emerged offering Direct investment Plans.

Now What is the Percentage of Mutual Funds Invested Directly Vs Regular (Distributor) Mode ?
All the Following Data is Obtained from AMFI Website --> Check Under Scheme Details

All Data as of 30-Sep-2020
We are considering the Top 2 Funds in Each Category by SIZE OF AUM - Assets Under Management

MultiCap Fund
Kotak Standard Multicap Fund - Growth - 25%Direct and 75% through distributor
HDFC Equity Fund - Growth - 33% Direct and 67% through distributor
SBI Focused Equity Fund - Growth - 19% Direct and 81% through distributor

LargeCap Funds
SBI BLUE CHIP FUND - Growth - 24% Direct and 76% through distributor
HDFC Top 100 Fund - Growth - 20% Direct and 80% through distributor
Mirae Asset Large Cap - Growth - 32% Direct and 68% through distributor

MidCap Fund
HDFC MidCap Opportunities Fund -  18% Direct and 82% through distributor
DSP MidCap  Fund -  17% Direct and 83% through distributor

Large & MidCap Fund
Mirae Asset Emerging Bluechip - 28% Direct and 72% through distributor
Canara Robeco Emerging Equities - 19% Direct and 81% through distributor

Investing in Mutual Funds by Direct Plans mean a 1% Higher Rate of Return.

So the thing is Direct Plans are Picking up and here to Stay since all the Corporate Debt is now invested in Liquid Funds using Direct Plans.

64

Mutual Funds in India / What is SWING Investment in SIP ?

« Last post by resh on October 23, 2020, 09:42:44 AM »

Assumption: I'm assuming you all are familiar with the concept of SIP.

Let me briefly explain what Swing Strategy in Mutual Fund SIP is.

Swing involves adding more money or removing excess on monthly basis from your mutual fund as every month the target is fixed which is equal to SIP Amount * Nth Month.


For example you start a of Rs 1000 every month.

First Month you BUY 100 units at Rs 10. RS 10 * 100 Units = Rs 1000 [Target Met]

Next month target is Rs 2000. Present NAV is Rs 11.
Target Rs 2000 -  (Rs 11 * 100 Units ) = Rs 900
So you only Add Rs 900 during Second month and get 81.81 Units. Total Units = 100 + 81.81 = 181.81

Say 3rd Month NAV Drops to Rs 8.00
Target for 3rd Month is Rs 3000
Present Value of Investment is Rs 8 * 181.81 = Rs 1455.
Contribution during 3rd Month will be Rs 3000 - Rs 1455 = Rs 1545 [Instead of 1000, you will invest 1545 and get 193.12 Units]
Unit Balance at end of 3 Months = 181.81 + 193.12 = 374.93

This should go on continuing for 10 years. Sure way to beat Returns Generated by SIP. Questions and Comments Welcome.

65

Mutual Funds in India / DSP AMC - Top Fund Managers / Executives Salary / Pay

« Last post by resh on October 07, 2020, 03:53:24 PM »

Here are the Top Paid Executives of DSP Mutual Fund in India (Asset Management Company)

Salary / Remuneration excluding Stock Options for FY 2019-2020 (All Figures in INR Crores)

Vinit Sambre   Senior Vice President and Head - Equities   4.482
Kalpen Parekh   Executive Vice President and President   4.218
Gaurav Pant   Senior Vice President and Fund Manager   4.029
Rohit Singhania   Senior Vice President and Co Head - Equities   2.54
Gopal Agrawal   Senior Vice President and Head - Macro Strategy & Senior Fund Manager   2.459
Atul Bhole   Senior Vice President and Fund Manager   2.191
Ramamoorthy Rajagopal   Executive Vice President and Chief Operating Officer   1.941
Jay Kothari   Senior Vice President and Head - International Business & Product Strategist   1.833
Aditi Kothari Desai   Director and Head - Sales, Marketing & e - business   1.629
Saurabh Bhatia Senior Vice President and Head - Fixed Income   1.601
Gaurav Nagori   Senior Vice President and Chief Financial Officer & Head - Client Response, Operations & SVM   1.276
Anil Ghelani   Senior Vice President & Head - Products & Passive Investments   1.235
Harsh Kothari   Senior Vice President   1.215
Suketu Mehta   Senior Vice President - Investments   1.209
Ashish Bajaj   Senior Vice President & Chief Technology Officer   1.201
Pritesh Majmudar   Senior Vice President and Head - Legal & Compliance   1.122
Yamini Sood   Vice President and Head - Institutional Sales   1.041
Sanjiv Kumar   Senior Vice President and Head - Human Resources   1.02

66

IPOs and Rights Issues / Re: UTI AMC - Review + Recommendation

« Last post by resh on September 29, 2020, 12:56:46 PM »

IDBI Capital Analyst Bunty Chawla Said,

At upper price band, IPO is priced at a P/E of 25.7x and P/AUM of 5.3% which is discount to its peers AMC (Nippon India P/E of 37.7x, P/AUM of 6.1% and HDFC AMC with P/E of 35.6x and P/AUM of 14.1%) based on FY20 due to lower return ratio (RoE at 10%). With focus on cost parameters and high dividend payouts (guided 50% vs 32.6% FY20) should result in improvement in RoE and thus valuation difference could decline. We recommend subscribing the issue.

Nirmal Bang Analyst Raghav Garg and Arjun Bagga said,

Even though we are positive on the industry prospects from a long-term perspective, we take cognizance of some of the near-to-medium term headwinds. At the upper price band of Rs554/share, the company is being valued at Rs70.2bn. At 25.4x FY20 EPS
(trailing), we think the IPO pricing is undemanding given the valuation HDFC AMC and Nippon AMC are currently commanding. We shall take a call on the stock rating at a later stage.

67

IPOs and Rights Issues / Re: UTI AMC - Review + Recommendation

« Last post by resh on September 29, 2020, 12:50:49 PM »

Choice Broking Analyst Rajesh Yadav said,

At the higher price band of Rs. 554 per share, UTI AMC is demanding a P/E valuation of 23.3x, which is at a discount to the peer average of 35.1x. Considering the above observations and positive macros of the domestic mutual fund industry, we assign a “Subscribe for Long Term” rating for the issue.

Anand Rathi Research Team Said,

Though the company has underperformed its larger industry peers in recent past, UTI Asset Management Company Limited’s IPO is priced relatively at a discount of about 30% at upper price band compared to its industry peers. Considering the future growth prospects for asset management industry and relative valuations we recommend Subscribe (Long Term) for the IPO.

Research Analyst Karan Desai of Asit C Mehta said,

The company is Well-positioned to capitalise on favorable industry dynamics, including the under-penetration of mutual fund products .At the upper price band of Rs.554/-, the stock trades at 25.7x its FY20 EPS of Rs.21.53/-. We recommend to subscribe the issue from a long-term prospective

68

Equity Investments, Fundamental Research and Sectors Review / Company wise breakdown of Stressed Debt

« Last post by resh on September 28, 2020, 09:22:50 AM »

Indian Company wise breakdown of Stressed Debt (Stressed Asset is the one where Loan Repayment is Not REGULAR)

I'd personally AVOID these companies including even declining job offer as unsure if they will be even able to pay salaries.

69

India Stocks and Shares / Post-Paid Customer Unwilling to Switch to Jio

« Last post by resh on September 27, 2020, 03:44:46 PM »

Reliance Jio focus to raise consumer market share continues after the company launched more aggressive postpaid wireless plans that were cheaper than incumbent offerings. This comes after the reduction in FTTH broadband tariffs late last month. While RIL’s prepaid offering has been one of the most value-for-money offerings, postpaid and broadband have been areas where customer acquisition has been slower than anticipated.

Jio's postpaid plan offers more value as its offering, with bundled OTT content even (at the lowest starting tariffs of Rs399/month), unlimited calling, along with higher data usage and additional benefits vs competition.

Jio's new tariff are at a 37% discount to Airtel's Rs499 plan. However, with the existing postpaid plan getting limited traction, we believe stickiness of postpaid and offers by competition to Jio's announcement still need to watched. India's postpaid ARPU as of Mar-20 was Rs244/month (~3x of pre-paid) with ~5% of the customer base on postpaid.

70

IPOs and Rights Issues / UTI AMC - Review + Recommendation

« Last post by resh on September 27, 2020, 03:36:07 PM »

UTI Asset Management Company -  AMC / Mutual Fund IPO Review and Recommendation

Nirmal Bang Analysts Raghav Garg and Arjun Bagga said

At the upper price band of Rs 554 / share, the company is being valued at Rs70.2bn. The issue size is Rs21.6bn, which is entirely an offer for sale (OFS). SBI, LIC, PNB, BoB and T. Rowe Price would be selling 39mn shares collectively. At 25.4x FY20 EPS (trailing), we think the IPO pricing is undemanding given the valuation HDFC AMC and Nippon AMC are currently commanding. From a more near-to-medium term perspective, we currently have a cautious view on the overall AMC sector. Even though we are positive on the industry prospects from a long-term perspective, we take cognizance of some of the near-to-medium term headwinds.

ICICI Direct Research Analyst, Kajal Gandhi Wrote

Post issue market capitalisation at the upper band will be Rs 7000 crore. At Rs 554, the stock is available at P/AAUM of ~5.3% Q1FY21 AAUM and at ~17.4x P/E at Q1FY21 PAT (annualised basis).

Emkay Securities analyst Jignesh Shial and Anand Dama said,

At a price band of Rs552-554, UTI AMC has priced its IPO at ~4.6% of total FY20 AUM (~26x P/FY20 earnings) with ~10% FY20 RoE. Peer comons are NAM India which is trading at ~7.4% of FY20 AUM (~37.3x P/FY20 earnings) and HDFC AMC which is trading at ~8.2% of FY20 AUM (~37.5x P/FY20 earnings). Considering relatively weaker return ratios and unfavorable AUM mix, UTI AMC is expected to be at a discount to its peers. Hence, the valuation discount by UTI AMC IPO is justified and remains attractive considering gradual improvement in cost parameters

Canara Bank Securities Research Team said,

UTI AMC IPO at higher price band is attractive as Market cap to AUM percentage stands at 5.26%, which is lowest among listed peers.
HDFC AMC’s and Nippon Life AMC’s Market Cap/AUM percentage stands at 12.57% and 8.54% respectively. In addition, UTI AMC’s PE stands at 25.73x FY20 as com-pared to HDFC AMC’s and Nippon Life AMC’s PE of 35.43x and 37.06x FY20 respectively. Hence, we rec-ommend to Subscribe UTI AMC IPO for listing as well as long term gains.