HDFC Bank Ltd. has declared the results of Q2 FY16

The bank has posted a rise of 20.49% & 6.44% in its net profit at Rs 2869.45 crore for the quarter ended September 30, 2015 as compared to the same quarter in the previous year & last quarter resp. Total income has increased by 24.68% at Rs 17324.28 crore for quarter under review as compared to Rs 13894.73 crore for the quarter ended September 30, 2014. Net income saw a rise of 24.69% and other income saw a rise of 24.65% on Y-o-Y basis.

Asset quality of the bank has also improved. The bank’s gross NPA for the July-September quarter of the current fiscal improved to 0.91%, as compared to 1.02% in the same quarter of the previous year. Besides, bank’s Net NPA stood at 0.25% in Q2FY16.

CASA proportion as on 30-Sep-2015 stands at 40%.

Latest Key Indicators of the stock are as follows: Read more ›

Tagged with: , , , , , , , , , , ,
Posted in Global News, Indian Market, Market Updates, Useful Articles

HCL Technologies Ltd. has declared the results of Q2 FY16

Company has declared results as per expectations. On the consolidated basis, HCL Tech. has reported decline in net profit by 2.92% and rise of 2.21% on sequential basis. Net Revenues (consolidated) of the company has increased by 15.59% and 3.27% at Rs 15,635 crore for quarter under review as compared to the quarter ended September, 2014 and June, 2015 respectively.

Latest Key Indicators of the stock are as follows: Read more ›

Tagged with: , , , , , , , , , , , ,
Posted in Global News, Indian Market, Market Updates, Useful Articles

Zee Entertainment Enterprise Ltd. has declared the results of Q2 FY16

Zee Entertainment Enterprises (ZEE) has reported results for second quarter ended September 30, 2015. On the consolidated basis, the company has reported 8.72% & 1.5% rise in its net profit for the quarter ended September 30, 2015 (Q2, FY16) as compared to the same quarter in the previous year ended September 30, 2014 (Q2, FY15) and previous quarter ended June 30, 2015 (Q1, FY16) respectively. Net Revenues (consolidated) of the company has increased by 23.89% Year-on-Year basis and 3.36% Quarter-on-Quarter basis to Rs 1,384.9 crore for quarter under review.

Latest Key Indicators of the stock are as follows: Read more ›

Tagged with: , , , , , , , , , , , , , , , ,
Posted in Global News, Indian Market, Market Updates, Useful Articles

TCS Ltd. declared the financial results of Q2 FY16

A fair growth of 14.06% in the revenue at Rs. 27165 Cr. was reported in the September 2015 quarter as compared to Rs. 23816 Cr. during year-ago period on consolidated basis. A humble growth in net profit of 16.02% reported in the quarter ended September 2015 to Rs. 6084 Cr. from Rs. 5244 Cr. Company has also witnessed small increase in profit margins. On sequential basis, growth in revenues is at 5.83% and net profit at 7.05%.

Latest Key Indicators of the stock are as follows: Read more ›

Tagged with: , , , , , , , , , , , ,
Posted in Global News, Indian Market, Market Updates, Useful Articles

Quarterly Results of Infosys Q2 FY16

Infosys has posted better returns than expected. On the consolidated basis, the company has reported 9.79% & 12.18% rise in its net profit at Rs 3398 crore for the quarter ended September 30, 2015 as compared to Rs 3096 crore for the same quarter in the previous year (Q2 FY15) and Rs 3030 crore for last quarter (Q1 FY16). Net Revenues (consolidated) of the company has increased by 17.19% and 8.92% at Rs 15,635 crore for quarter under review as compared to the quarter ended September, 2014 and June, 2015 respectively.

Latest Key Indicators of the stock are as follows:

Key Market Indicators (Consolidated)
Latest Date 12-Oct-2015
Latest Price (Rs) 1122.50
Previous Close (Rs) 1167.85
1 Day Price Var% -3.88
1 Year Price Var% 13.86
52 Week High (Rs) 1219.00
52 Week Low (Rs) 929.50
Beta 0.68
Face Value (Rs) 5.00
Industry PE 20.10
TTM Period 201509
TTM EPS(Rs) 55.62
TTM CEPS(Rs) 55.63
Price/TTM CEPS(x) 20.18
TTM PE (x) 20.18
Price/BV(x) 4.50
EV/TTM EBIDTA(x) 12.74
EV/TTM Sales(x) 3.98
Dividend Yield% 2.65
MCap/TTM Sales(x) 4.51
Latest Book Value (Rs) 249.68
Market Cap (Rs. In Crores) 257832.04
EV (Rs. In Crores) 227465.04
Latest no. of shares (In Crores) 229.69

 

 

 

Comparison of quarterly results with previous quarter (Q-o-Q) and the same quarter of last year (Y-o-Y) is below:

DESCRIPTION Sep-15 Jun-15 Q-o-Q Var% Sep-14 Y-o-Y Var%
Net Sales 15,635 14,354 8.92 13,342 17.19
Total Expenditure 11,642 10,932 6.49 9,859 18.08
PBIDT (Excl OI) 3,993 3,422 16.69 3,483 14.64
Other Income 793 783 1.28 877 -9.58
Operating Profit 4,786 4,205 13.82 4,360 9.77
Interest          
PBDT 4,786 4,205 13.82 4,360 9.77
Depreciation          
PBT 4,786 4,205 13.82 4,360 9.77
Tax 1,387 1,175 18.04 1,264 9.73
Profit After Tax 3,399 3,030 12.18 3,096 9.79
           
Adj. Calculated Diluted EPS (Unit.Curr.) 14.85 13.24 12.16 13.53 9.75
           
PBIDTM% (Excl OI) 25.54 23.84   26.11 -2.17
PBIDTM% 30.61 29.29   32.68 -6.33
PBDTM% 30.61 29.29   32.68 -6.33
PBTM% 30.61 29.29   32.68 -6.33
PATM% 21.74 21.11   23.20 -6.31

 

Company has also declared interim dividend as follows:

Up Coming Corporate Action
Event AGM / Board Meeting / Record Date Details
Ex Dividend 19-Oct-2015 200% – Rs. 10

 

Tagged with: , , , , , , , , ,
Posted in Global News, Indian Market, Market Updates, Useful Articles

Morning Huddle 14 Oct 2015

Click to get Indian indices weekly update, Global market indices and Commodity Updates dtd Oct 14, 2015 at IFMs link :

http://www.ifmglobal.in/Uploads/Attribute/morning-huddle-14-oct-2015.pdf

 

Tagged with: , , , , , , , , ,
Posted in Global News, Indian Market, Market Updates, Useful Articles

Why markets may correct further?

We have witnessed some volatility in markets during March 2015 it may remain so for some period due to many reasons. Explanation of these reasons is as below.

Indian markets have performed very well for more than one year. NIFTY touched its highest level of 9100 in March 2015, which is a rise of 70% from its low of 5300 level in August 2013 without giving a single correction of 10% or more. It is not a healthy sign for any kind of trend & signals toward a correction.

RBI did its second rate cut of 25 basis points on March 4. It was also the day when markets touched its life time high in early trades. But it could not maintain that level and closed in red mark. It was a major trigger for markets to lead it to further highs, but it failed to do so & since then markets have corrected 8% from its high.

Untimely rains in India have how to beat  1.81 crore hectare crops of most of states of India so far. It is going to impact the inflation in times to come which RBI has brought under the set targets with so many attempts and so much difficulty. It may also delay the further rate cuts. Also it has hit the farmers heavily which will lead to loan defaults. It will further hamper the demands in different sectors due to less spending by rural India.

Corporate earnings have still not picked up & dismal earning growth will be witnessed for current quarter too. Markets have grown at much higher pace as compared to earnings growth from past 2-3 fiscals continuously. It is not good as markets are slave of earnings.

Europe has still not recovered as demand in euro zone is still not picking up. China and Japan are also facing downtrend in demands. It will hurt the export led sectors of India. Also currency war is under process in the world. INR has remained flat as compared to USD but has appreciated heavily against the baskets of currencies of other countries. It will further hamper the competitiveness of Indian export companies. Also, US may hike interest rates this year which will lead to some volatility in foreign inflows in India. All these global factors are also indicating the volatility ahead.

Due to all these reasons markets may remain volatile for some period and may correct further from current levels.

Posted in Useful Articles

Save tax by investing in equities and debt.

The most common  and accepted form of  investment is  fixed deposits. The interest which they earn gets added into their income and thus they end up paying marginal rate of tax. For example a person, who is 30% tax slab, gets Rs. 1,00,000 interest income on his fix deposits at the interest rate of 9% then he has to pay 30.9% tax on the interest income and finally gets Rs. 69,100 in hand. It means you get just 6.2% return in hand after tax. So, there is the need to understand other investment options & their taxation.

Save tax  by investing in equities and debt

An alternate to fixed deposits  with minimum risk  is Debt funds. They invest in Govt. & corporate interest papers. However while investing in these funds one needs to keep in mind the  taxation. If one invests for less than 36 months then the taxation is just like the taxation on fixed deposits, but if one invests for more than 36 months then he will have to pay 20% tax after indexation. For example if a person earns 9% annualized return and inflation rate is 6% which means he/she earns 3% after inflation and will have to pay 20% on it which will be just 0.6%. So one will  be  able to get 8.4% return in hand after tax irrespective of your tax slab.

However in terms of returns the best advisable option to invest is the equities. One can buy stocks directly from the market or through equity mutual funds. Equity markets may be risky for short tenure, but in long run they provide highest returns in comparison to other asset class. SENSEX has provided the annualized return of 16.8% since inception. Also the taxation in equities is low. If one invests for less than 12 months then it will be consider as short term capital gain & he will have to pay 15.45% tax on capital gain. If one invests for more than 12 months then gain will be considered as long term capital gain and it will be totally exempted from tax.

Third option could be the balanced funds where at least 60% is invested in equities and rest in debt. It is safer then equities but riskier than debt. In long run balanced funds have provided annualized return of 14-15%. The taxation of balanced fund is same as in equities. So by investing in balanced fund you can save the tax even on the portion which has been invested in debt.

However investment in any of the above asset class will depend on risk profile of  the customer  and time horizon  of the investment.  A  Financial advisor can assist you in understanding  your risk profile  and advise you right investments  to achieve your  financial goals.

Tagged with: , , , , , , , , , , , , ,
Posted in Global News, Indian Market, Market Updates, Useful Articles

SENSEX posted 31% fall in earnings in the quarter ending March-15

Corporations posted heavy falls in the earning in the quarter ending Mar-15. Bad results were being estimated but no one had expected such huge falls in profits. SENSEX earnings (of 25 companies who has posted results so far) in Q4 FY15 have come down by whopping 31% as compared to the year before in Q4 FY14.

Company Name

Q4 FY15

Q4 FY14

Percentage Change

Vedanta

-19,228.12

1,621.55

-1285.79

Tata Steel

-5,674.29

1,035.87

-647.78

Tata Motors

1,716.50

3,918.29

-56.19

BHEL

888.35

1,844.59

-51.84

Bajaj Auto

69.14

137.71

-49.79

GAIL

510.75

972.03

-47.46

Hindalco

159.53

248.15

-35.71

TCS

3,712.67

5,357.61

-30.70

ONGC

3,935.07

4,889.00

-19.51

Hero MotoCorp

476.53

554.43

-14.05

Coal India

4,238.55

4,434.19

-4.41

Wipro

2,272.00

2,226.50

2.04

Infosys

3,097.00

2,992.00

3.51

ITC Ltd.

2,361.18

2,278.01

3.65

Dr. Reddys Lab

518.84

481.6

7.73

Reliance

6,381.00

5,881.00

8.50

HDFC Ltd.

2,646.35

2,414.70

9.59

ICICI Bank

3,084.92

2,724.26

13.24

Hindustan Unilever

1,018.08

872.13

16.73

Axis Bank

2,180.59

1,842.32

18.36

SBI

4,694.11

3,963.82

18.42

HDFC Bank

2,806.91

2,326.52

20.65

Bharti Airtel

1,255.30

961.6

30.54

Maruti

1,284.24

800.05

60.52

Tata Power

159.14

-145.33

209.50

SENSEX (25 Companies)

66,628.34

96,331.60

-0.31

Read more ›

Tagged with: , , , , , , , , , , , , , , , , , , ,
Posted in Global News, Indian Market, Market Updates, Useful Articles

Investors should invest in quality stocks to get the right benefit of the correction

Markets are facing correction since March, 2015 after NIFTY touching life time high of 9100. Markets have corrected by almost 10% since then due to various reasons, the most important among them is the low corporate earnings. Correction may continue for some time further. This correction is going to provide opportunities for fresh investments as valuations are again becoming attractive.

quality-stocks-for-investment

In this correction, stock prices of large-cap companies have already fallen by 10-20% & where as of mid-cap & small-cap companies by whopping 20-30%. These prices are attracting investors for fresh investments. But the prominent question here to ask is where one should invest to maximize the returns while keeping the risk low. For fresh investments, one should go for quality stocks to get the maximum benefit of this correction. Also one should also try to reshuffle his portfolio by selling the non-quality stocks and replacing them with quality stocks.

Rationale behind it is that price of company’s stock is function of potential growth in earnings in long term. It is not the past which determines its price & its growth. Most of investors have a myth that if share price of company has done well in past then it will definitely do well in future too. Actually, share price of penny stocks & low quality shares jumps heavily in Bull-run & these shares also dive heavily during correction, not to see its previous high for long term or sometimes ever. People start investing in these low quality stocks and get stuck in them for long term without receiving any gains.

One should invest in quality stocks which have strong fundamentals. Quality stocks have the potential to multi-fold & these shares outshine the markets. Even if the price of quality stocks goes down, these stocks keep the potential to jump back. Thus quality stocks do provide higher return with low level of risk in long term.

To determine if the particular stock is a quality stock or not, one should follow some rules. Firstly, the company should have a product which do have some kind of competitive advantage against others & ho much sustainable it is. It helps to sustain as well as to provide growth in revenues and it also helps in high margins. Secondly, one should check if the management provides the return back to shareholders or not. One should never invest in company whose management is not good even if product is very promising. Thirdly, company should have potential of growth in business. One should also look how company has performed in tough times. If one can perform well in tough times then he can do wonders in favorable times. Fourthly, how the valuations of company looks. One should try to buy at cheep valuations as it reduces the risk of downsize and at the same time increases the return potential. Corrections normally help in providing right valuations.

This correction is going to provide an opportunity to everyone for fresh investments. One should invest warily in right stocks. Also start investing in tranches as correction may continue for few months. Once you have invested in right stocks then there will be need of just sitting tight to enjoy the ride.

Tagged with: , , , , , , , , , , ,
Posted in Global News, Indian Market, Market Updates, Useful Articles
Newsletter