Weekly Markets Sentiment_23.09.2017

Markets had a rough week. Sentiment changed for the worse. Nifty, from all time new closing highs fell right below 10k. Friday’s fall was particularly steep and worrisome. Weekly cut on the Nifty was of more than 100 points. Sentiment turned for the worse and participants see deeper cut on the index. Fall across the market was deep. Mid-caps and Small-caps were butchered and badgered out of shape. Cuts across some of the counters were as deep as 7-10%.

Technically Nifty is below support of 10k. 9950 can break easily if the fall is not restricted. 9900 is the 50-D EMA. That should provide intermediate support. Sentiment is bearish no doubt as last highs were not taken out. Early days for a double top, but Nifty sure is not sustaining at high levels. Next week it is crucial that Nifty hovers or settles near the 9950 level. Should this break you are likely to test 9700.

Fundamentally markets are at 26x P/E. The valuations continue to remain elevated and above historical levels. Domestic flows continue to barge in. FIIs continue to sell heavily. They have sold about 15k crores this month and sell every day. The quantum of FII selling is more than matched by domestic MF flows. SIPs continue to flow and support the markets.

Globally, DOW is above 22k. Fed stayed put with rates however have indicated an imminent hike in December. North Korea continues to threaten world safety and give bears new hopes and reasons to fall. US retaliated with some actions of its own. Situation remains skeptical.

For the week Metals look like to continue its correction. Having said that they will be a good buying opportunity. Some of the indexes are showing signs of reversal however confirmations are far off as of now. One has to wait and watch for indices to breach key support zones. Pharma and IT continue to be safe bets. Banks are weakest.

Ongoing SME IPO_ CADSYS ( INDIA) LIMITED

SME IPO_ CADSYS ( INDIA) LIMITED

Issue Details

Issue opens 21th September 2017
Issue Closes 25th September 2017
Issue Price 70
Lot Size 2000
Issue Size 14.70 Crore
Lead Manager Saffron Capital Advisors Pvt. Ltd.
Registrar Big Share Services Pvt. Ltd.
Platform NSE

Promotors Group

  1. N.C.V Rangacharya ( Managing Director) is the single promoter of the Company.

Business Description

The company is domain focused GIS and engineering business technology service provider headquartered in Hyderabad, with presence in United States. They are primarily engaged in providing IT enabled services foe geospatial, field engineering survey,software development and engineering design services in the domains like telecom, electricity and other utilities.

They have expanded their portfolio with strategic acquisition to emerge as a well balanced player in the IT  Service Segment. The company is certified by ISO 9001:2015 for design development and production of Geographical IS and engineering services . Their clientele include govt departments and companies in telecom power and other utility sectors.

Overview of Consolidated Financials (Restated)

(Rs. in Lakhs)
Particulars 2016-17 2015-16 2014-15 2013-14 2012-13
Total Revenue 4363.6 2984.15 2354.37 2000.46 1369.18
Total Asset 5466.21 2864.34 2337.87 1677.27 1303.04
PAT 1094.79 551.74 468.4 296.99 218.57

Object of the Issue

(Rs. in Lakhs)
Sr. No. Particulars Amount
1 Repayment of Long term Borrowing 1100.00
2 General Corporate Purpose 275
3 Issue Expenses 95
Total 1470.00

Financial Ratios ( Consolidated Basis) :

  1. EPS : 20.26
  2.  PE Ratio : 3.53
  3.  RONW : 37.97%
  4.  NAV per share : 53.63

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Forthcoming_IPO_Prataap Snacks Limited IPO

Prataap Snacks Limited IPO

Issue Detail:

Issue Open Date Sept 22th , 2017 Price Band : Rs 930 – Rs 938  
Issue Open Date Sept 26th , 2017 Minimum Bid Qty : 15  


Objects Of The Issue :

The Issue comprises the Fresh Issue and the Offer for Sale.

  1. Offer for Sale
    Each of the Selling Shareholders will be entitled to their respective portion of the proceeds from the Offer for Sale. Company will not receive any proceeds from the Offer for Sale.
  2. Fresh Issue
    Company proposes to utilise the Net Proceeds from the Fresh Issue towards funding the following objects:
  3. Repayment/pre-payment, in full or part, of certain borrowings availed by the Company;
    B. Funding capital expenditure requirements in relation to expansion and modernisation at certain of our existing manufacturing facilities;
    C. Investment in its Subsidiary, Pure N Sure, towards enabling the repayment/pre-payment of certain borrowings availed of by our Subsidiary;
    D. Marketing and brand-building activities; and
    E. General corporate purposes.

Business Description :

Incorporated in 2009, Prataap Snacks is Indore, MP based Indian Snack Food Company. Prataap Snacks sell products under the brand name “Yellow Diamond”. Company is among the top 6 Indian organized snack market.

Prataap Snacks has a diversified product portfolio including traditional and western snacks. Company manufacture and sell it’s snacks under three major savory snack food categories:

  1. Extruded Snacks: Processed, reconstituted and shaped potato or cereal based snacks. This includes Puffs, Rings, Pellets and Chulbule products.
    2. Chips: Fried, sliced chips or crisps made from potatoes, hummus, lentils.
    3. Namkeen: Traditional savoury Indian snack which includes products such as moong dal, masala or fried nuts, sev and bhujia.

In Fiscal 2017, revenue from Extruded Snacks, Chips and Namkeen represented 62.99%, 23.85%, and 12.23%, respectively

Company has pan-India distribution network supported by strategically located manufacturing facilities. Company’s distribution network included 205 super stockists and over 3,400 distributors.

Prataap Snacks own and operate three manufacturing facilities, one located at Indore and the other two located at Guwahati, Assam.

Company Promoters:

The Promoters of the Company are Arvind Mehta, Amit Kumat, Apoorva Kumat, Rajesh Mehta, Naveen Mehta, Arun Mehta, Kanta Mehta, Rita Mehta, Premlata Kumat, Swati Bapna, Rakhi Kumat, Sandhya Kumat and SCI Growth Investments II.

Company Financials:

Particulars

For the year/period ended (in Rs. million)

31-Mar-17

31-Mar-16 31-Mar-15 31-Mar-14

31-Mar-13

Total Assets

4,271.75 3,414.01 2,991.31 2,798.79

2,220.65

Total Revenue

9,054.57 7,579.01 5,605.71 4,468.45

3,444.84

Profit After Tax

98.93 273.73 99.02 53.79

148.72


Company Contact Information :

Prataap Snacks Limited
Khasra No 378/2, Nemawar Road,
Near Makrand House,
Indore 452 020
Phone: (91 731) 243 7621
Fax: (91 731) 243 7605
Email: complianceofficer@yellowdiamond.in
Website: http://www.yellowdiamond.in

IPO Registrar :

Karvy Computershare Private Limited
Karvy House, 46, Avenue 4, Street No. 1,
Banjara Hills, Hyderabad – 500 034
Andhra Pradesh, India

Phone: +91-40-23312454
Fax: +91-40-23311968
Email: einward.ris@karvy.com
Website: http://karisma.karvy.com

IPO Lead Manager(s) :

  1. Edelweiss Capital Limited
  2. JM Financial Consultants Private Limited
  3. Spark Capital Advisors (India) Private Limited

Ongoing_IPO_SBI Life Insurance Company Ltd

SBI Life Insurance Company Ltd IPO Detail

Issue Detail:

Issue Open Date Sept 20th , 2017 Price Band : Rs 685 – Rs 700  
Issue Open Date Sept 22th , 2017 Minimum Bid Qty : 21  


Objects Of The Issue :

The objects of the Offer are to achieve the benefits of listing Equity Shares on the Stock Exchanges and to carry out the sale of up to 120,000,000 Equity Shares by the Selling Shareholders.

 

Business Description :

Incorporated in 2000, SBI Life Insurance Company Limited is India based private life insurer. SBI Life Insurance is a joint venture between the State Bank and BNPPC. State Bank is India’s largest commercial bank. BNPPC, an insurance subsidiary of BNP Paribas, with operations across 36 jurisdictions internationally, is among the leading credit life insurance businesses globally. BNP Paribas is in top 10 global financial institution in terms of revenue.
SBI Life has product a portfolio of 37 individual and group products, including a range of protection and savings products to address the insurance needs of diverse customer segments.

Company has developed a multi-channel distribution network comprising bank branches of SBI and its associated banks, individual agent network (93,849 agents) and other distribution channels including direct sales and sales through corporate agents, brokers, insurance marketing firms and other intermediaries.

SBI Life turned profitable within the first five years of our operations, and have declared dividends every year since 2012.

Competitive Strengths

  1. Largest private life insurer in India since 2010.
    2. Backed by SBI and BNPPC
    3. Vast multi-channel distribution with pan-India presence (Branches, Agents and Online)
    4. Strong capital base. Company has not required additional capital infusion since 2008.
    5. Diversified product portfolio

Company Promoters:

The Promoters of the Company are State Bank and BNPPC.

Company Financials:

Particulars For the year/period ended (in Rs. million)
31-Mar-17 31-Mar-16 31-Mar-15 31-Mar-14 31-Mar-13
Total Assets 26,782.89 23,110.62 25,516.19 24,341.77 19,756.78
Total Revenue 3,02,775.13 1,91,197.24 2,31,864.86 1,73,694.22 1,49,755.25
Profit After Tax 9,546.53 8,441.03 8,148.67 7,277.53 6,301.12


Company Contact Information :-

SBI Life Insurance Company Ltd
NATRAJ,
M. V. Road and Western Express Highway Junction,
Andheri (East), Mumbai 400 069
Phone: +91 22 6191 1000
Fax: +91 22 6191 0338
Email: investor@sbilife.co.in
Website: https://www.sbilife.co.in/

 

IPO Registrar :

Karvy Computershare Private Limited
Karvy House, 46, Avenue 4, Street No. 1,
Banjara Hills, Hyderabad – 500 034
Andhra Pradesh, India

Phone: +91-40-23312454
Fax: +91-40-23311968
Email: einward.ris@karvy.com
Website: http://karisma.karvy.com

IPO Lead Manager(s) :

1. Axis Capital Limited
2. BNP Paribas
3. Citigroup Global Markets India Private Limited
4. Deutsche Equities India Private Limited
5. ICICI Securities Limited
6. JM Financial Consultants Private Limited
7. Kotak Mahindra Capital Company

Morning Business News Round Up_Sep 20,2017

Morning Business News :

  • Banks can classify priority loans as standard debt: RBI
  • Korea objects to curbs on gold imports
  • TRAI recommendations to promote ease of telecom biz
  • Trump warns US may have to ‘totally destroy’ N Korea
  • US concerned over Sri Lanka’s debt burdens
  • India to supply over half of Asia’s workforce: Report
  • Govt makes public names of debarred directors
  • Trai slashes call connect charge to 6 paise/minute
  • US defence firms want control over tech in Modi’s Make-in-India plan
  • Tata Sons consolidates holdings in three group companies
  • JSW Steel in talks with investors for Bhushan Steel bid
  • Zydus and Pharm Aid tie up for vaccine technology for Russia
  • Tata Motors steps on the accelerator, JLR adds pace
  • Economic slowdown is real, not just technical: SBI Research
  • Companies may face additional tax compliance burden
  • Jaitley holds meeting to take stock of economic issues
  • MCX Zinc reverses higher from a key support level
  • Anti-dumping duty on bus radial tyres from China
  • New York hotels sale may leave Sahara with $200-250 mn
  • Trai lowers IUC, Reliance Jio prevails over Airtel, Idea

Image result for Reliance Jio

  • Ford, Mahindra examine strategic alliance, 22 years after first partnership
  • Switzerland shuts down ‘fake’ E-Coin in latest cryptocurrency crackdown
  • India to reach 20 GW of installed solar capacity by FY18-end: report
  • Nifty hits another all-time high for 2nd day in a row; tops 10,175 points for the first time ever
  • Singapore business community to hold conference on Indian market
  • India needs Rs 3-4 lakh cr investment in aviation: Jayant Sinha
  • NPA-laden state-run banks crimp advance tax mop-up at 10.6 per cent
  • The world’s biggest wealth fund hits $1 trillion
  • Dependence of Indian IT cos on visas reducing: Nasscom
  • Sebi takes guard against security threats, to hire agencies
  • Modi’s meeting with FM, Finmin officials postponed
  • Mahindra showcases driverless tractors
  • GoM on AI may suggest 51% FDI in aviation

Morning Business News Round Up_Sep 19,2017

Morning Business News :

  • FDI likely to rise further after GST: Moody’s
  • Adhia-led panel to meet tomorrow on exporters’ issues
  • NCLT orders StayZilla into insolvent liquidation case
  • India to be no. one in power generation, consumption’
  • Sebi allows REITs, InvITs to raise funds through bonds
  • Big 4 accounting firms on IBA’s list of forensic auditors
  • Mahindra joins hand with Ford for electric vehicles
  • Trai bats for homemade telecom equipment
  • US govt notifies cut in anti-dumping duty on Indian shrimps
  • PE/VC investments, exits at record high of $5.4 bn in Aug 2017: EY
  • IBM, Reliance arm, KPIT to jointly offer IoT solutions across verticals
  • Competition Commission admits petitions against NIIT Limited
  • Govt panel deciding valuation for ONGC’s HPCL acquisition: M K Surana
  • OVL gets extension till 2049 for Azeri-Chirag-Deepwater project
  • Maharashtra set to be $1-trillion economy, says Fadnavis
  • HPCL to add 5 mt petchem capacity over 5 years
  • Tata Motors bets big on experiential marketing
  • SEBI updates board on action against suspected shell firms
  • US oil prices hit $50 on rising refinery demand, falling rig count
  • ICICI Lombard IPO subscribed 98% on Day 2

Image result for ICICI Lombard

  • Mytrah Group raises Rs1,800 crore from Piramal Group
  • Mahindra Lifespace to get $50 million investment from IFC
  • Three directors step down from Hotel Leelaventure board
  • 9th anniversary of Lehman Brothers bankruptcy and Indian banking
  • Lupin names Jim Loerop as chief corporate development officer
  • PM Narendra Modi to meet FM, officials to review economic situation today
  • India open to 100 per cent FDI in defence with full tech transfer, says Indian defence official
  • Rs 300,000 cr road sector loans saved from turning NPAs: Nitin Gadkari
  • High input tax credit claims hit GST revenues
  • 10,000 UK finance jobs affected in Brexit’s first wave
  • Gadkari wants to take NHAI public, awaiting FinMin nod
  • Mergers boost finance sector consolidation
  • Infosys’ Sikka man and senior VP Rajagopalan quits

Morning Business News Round Up_Sep 18,2017

Morning Business News :

  • Government to sell Air India properties owned by them
  • HPCL plans Rs 61,000 crore investment in 5 years
  • CAD seen at 1.2-1.3 per cent of GDP in FY18: Icra
  • Tata Motors plans to breathe fresh life into its PV portfolio
  • Just two bidders for Rs 37k cr Aamby Valley auction
  • Gold imports jump three-fold to $15 bn in April-Aug
  • SES urges Bharti shareholders to reject Telenor deal
  • Fosun Pharma to buy 74% stake in Gland for $1.09 billion
  • Drug makers dial foreign regulators on quality issues
  • Sebi board to take stock of suspected shell cos on Monday
  • Tata Motors eyes larger share of utility market with SUV Nexon
  • GSTN reopens composition scheme window for small businesses
  • Members want preferential treatment in NSE’s Rs 10Kcr IPO
  • Banks to gain as steel sector shows signs of growth
  • India likely to be 3rd largest economy by 2028: HSBC
  • RBI may keep policy rate on hold till FY18-end

Image result for RBI

  • Monnet Ispat: IRP calls for expression of interest
  • CVC to probe govt employees deposits post demonetisation
  • FPIs pull out Rs. 3,000 cr from stocks in September so far
  • India-Japan ties set on high growth trajectory
  • SBI reviewing minimum balance charges for savings accounts
  • Govt may raise over Rs15,000 crore from share sale of 2 PSU insurers
  • TVS Motor to roll out electric two-wheelers soon
  • External debt of India drops 2.7 pct to $471.9 bn, records first such drop in 5 years
  • Government asks state-owned banks to discuss ways to merge at board level
  • Bankruptcy board to register 100 more insolvency professionals to add to 940
  • Indian start-up Kheyti wins prestigious award in Israel
  • Mergers boost finance sector consolidation
  • GIC Re IPO next month, over 14% stake dilution can fetch up to Rs 11k cr
  • Govt to monitor iron ore output
  • Centre eyes record rabi crop output

Weekly Markets Sentiment_16.09.2017

Markets rose for the week ending 16.09.2017. Global rally lifted stocks and Nifty ended firmly above 10k at 10085. It was up 1.5% for the week. Sentiment all across the globe was that of relief. Although, the routine Friday came up with usual news of North Korea activity. This put some brakes on bulls as they were trying to get past the all time highs. Markets sentiment is soured by the recent act of North Korea but such things seems to have a new normal status.

Technically speaking Nifty is past 10k which was its major intermediate hurdle. This in turn will be the level to defend. This week, 10k will provide a certain amount of support on the way down. On its way up Nifty will face supply in the 10100-150 region. It did briefly hit 10131 and receded back below 10100. This is a major supply zone and will be interesting to see it markets blast past this. In all likely hood there can be a very slow and uncertain breakout. Almost a forced move beyond all time highs. The near term support is locked at 9800, while 10k looks good for this week. The more Nifty stays above 10k, call writers will be on their toes.

Fundamentally, nothing has changed, nothing will. Post the 400 point correction, Nifty has smartly and slowly climbed up a wall of worry. Multiples are still way beyond normal. P/E nearing 26-27 range. This is in the historical high range. Still due to lack of negative triggers and ample amount of domestic flows, markets continue to frustrate people who are sitting on cash. FIIs have been net sellers to the tune of 3000-3500 cr. After almost a month of relentless selling Friday they bought 400 cr. A noteworthy number. DII’s continue to force-feed the markets. They pumped in 3500 cr+ in the same week. SIP flows, MFs selling continues to attract retail to equities. People want to make merry while it lasts!

Globally, DOW recorded its highest ever close. It now is firmly above 22k. Apple’s launch was muted. People say Jobs invents, Cook improves! Stock reacted as if nothing new had happened. Markets world over look flushed with liquidity. Korea holds the key. It is almost as if markets expect Korea to do some testing on Friday. A surprise jolt could trigger something catastrophic, albeit the probability is low.

Sector watch – Metals cooled off slightly. Still they look somewhat overheated but the strongest index in all. Nifty metals should try to test 3750. Bottom fishing in pharma continues, the sector looks interesting with a lot of sentiment changing. Nifty Pharma can test 9900 this week.

Forthcoming IPO_ICICI Lombard General Insurance Company Ltd

ICICI Lombard General Insurance Company Ltd IPO Detail

 

Issue Detail:

Issue Open Date

Sept 15th , 2017 Price Band : Rs 651 – Rs 661  
Issue Open Date Sept 19th , 2017 Minimum Bid Qty :

22

 


Objects Of The Issue :

The objects of the Offer are:

  1. To achieve the benefits of listing the Equity Shares of the Company on the Stock Exchanges;
    2. To carry out the sale of up to 86,247,187 Equity Shares by the Selling Shareholders; and
    3. Enhance the “ICICI Lombard” brand name and provide liquidity to the existing shareholders.

Business Description :

Incorporated in 2000, ICICI Lombard General Insurance Company Ltd founded as a joint venture with ICICI Bank Limited, is engaged in providing various general insurance products and services in India. They mainly offers fire, engineering, hull, aviation, motor, casualty, health, travel, energy, personal accident, marine, liability, home, rural, and credit insurance products and services.

They also provides reinsurance, insurance claims management, and investment management services. They were the largest private sector non life insurer in India based on gross direct premium income in fiscal 2017. They offer comprehensive and well diversified range of products including motor, health, crop/weather ,fire ,personal accident, marine, engineering and liability insurance through multiple distribution channels.

They provide services to conglomerates, small and medium enterprises, state and central governments or government-owned enterprises, rural customers, and individual customers through various channels, such as agents, brokers, bank assurance, telesales, direct alliances and online platforms.

Competitive Strengths

  1. Consistent market leadership and demonstrated growth
    2. Diverse product line with multi – channel distribution network
    3. Robust risk selection and management framework
    4. Focus on investments in technology and innovation

Company Promoters:

The Promoter of the Company is ICICI Bank

Company Financials:

Particulars

31-Mar-17

31-Mar-16 31-Mar-15 31-Mar-14

31-Mar-13

Total Assets

48,885.8 35,445.0 32,414.2 25,070.8

20,290.5

Total Revenue

9,836.5 7,242.2 7,424.4 5,563.1

4,162.1

Profit After Tax 6,418.2 5,053.4 5,853.2 5,200.7

3,527.8

 

Company Contact Information :

ICICI Lombard General Insurance Company Ltd
ICICI Lombard House,
14, Veer Savarkar Marg, Near Siddhivinayak Temp.
Prabhadevi, Mumbai 400 025
Phone: +(91 22) 6196 1100
Fax: +(91 22) 6196 1323
Email: investors@icicilombard.com
Website: https://www.icicilombard.com

IPO Registrar :

Karvy Computershare Private Limited
Karvy House, 46, Avenue 4, Street No. 1,
Banjara Hills, Hyderabad – 500 034
Andhra Pradesh, India

Phone: +91-40-23312454
Fax: +91-40-23311968
Email: einward.ris@karvy.com
Website: http://karisma.karvy.com

IPO Lead Manager(s) :

  1. Edelweiss Capital Limited
  2. JM Financial Consultants Private Limited

UPCOMING SME IPO : DP WIRES LIMITED

SME IPO: DP Wires Limited

Issue Details

Issue opens 21th September 2017
Issue Closes 27th September 2017
Issue Price 75
Lot Size 1600
Issue Size 26.88 Crore
Lead Manager Sarthi Capital Advisors Pvt. Ltd.
Registrar Big Share Services Pvt. Ltd.
Platform NSE

Promoters Group:

  1. Mr. Praveen Kataria
  2. Mr. Hemant Kataria
  3. Mrs. Asha Devi Kataria

Object of the Issue

(Rs. in Lakhs)
Sr. No. Particulars Amount
1 Working Capital Requirements 2078.00
2 General Corporate Purpose 550
3 Issue Expenses 60
Total 2688.00

Business Description

The group was started in 1970 and production of steel wires by 1971. The group is engaged in manufacturing and supply of steel wires , Plastic pipes and plastic films which find its application in industries like oil & gas, power, environment, steel, energy etc. all of them located in a single premise at industrial estate, Ratlam.

It is also engaged in power generation through 2 wind farms of 0.8 MW each in village of Madhi and Jodhpur in District Jamnagar. Their Plastic products have been used in lining of canals , landfills, Highways and Road Construction, ponds, tanks etc

Company Financials

(Rs. in Lakhs)
Particulars 2016-17 2015-16 2014-15 2013-14 2012-13
Total Revenue 19683.21 16005.7 13913.28 9361.6 9782.58
Total Asset 8135.94 6847.91 5026.72 3072.83 4498.78
PAT 499.79 218.57 167.37 124.55 144.27

 

Financial Ratios

EPS: 5.03

PE Ratio : 14.91

NAV after issue: 40.33

Weighted RONW: 13.23

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