Tag: stock market news

Buyback- An Inside Story

A buyback is a transaction in which a company buys back its own shares. It is capitalization of its own surplus cash. hence it can also be viewed as an alternative to cash dividends. Shares that have been issued and subsequently buyback are classified as treasury shares. They are not then considered for dividends, voting rights or computing earnings per share(EPS). Some of the basic reasons for share buyback or repurchase are: 1. Management perceived shares in the company to be undervalued in the market place or more generally to support the share price. Company intrinsic value is more than market price. 2. There is no better opportunity to deploy cash, which can generate better returns than cost of capital. 3. Tax efficiency in distributing cash, in market in which the tax rate on cash dividends exceeds the tax rate on capital gains. 4. To absorb increase in share outstanding resulting from the exercise of employee stock options. 5. Capitalization of reserve and surplus to improve ROE. <strong><u>Various share buyback method used by the companies are:</u></strong> 1. Buy in the open market <br /><a class="btn btn-tislider-two" href="http://www.ifminvest.in/buyback-an-inside-story/">Read More</a>

Tree House Education has declared the results of Q2 FY16

Company has reported marginal rise of 1.19% (Y-o-Y) & huge decline of 29.3% (Q-o-Q) in profit after tax at 12.74 cr. for the quarter ended September 30, 2015 as compared to the quarters ended September 30, 2014 and June 2015. Net Revenues grew by 15.05% on Y-o-Y basis and declined by 17.07% on Q-o-Q basis. Company’s margins have shrunk massively this quarter because of massive operating expenditures rise of 35%. Company’s Gross Profit Margin is 52.66%. It has declined by 701 basis points on Y-o-Y basis and 1137 basis Q-o-Q basis. PAT margin has also slipped by 305 and 385 basis points compared to same quarter last year and <br /><a class="btn btn-tislider-two" href="http://www.ifminvest.in/tree-house-education-has-declared-the-results-of-q2-fy16/">Read More</a>

Axis Bank Ltd. declared the financial results of Q2 FY16

Axis Bank Ltd. has reported good financial results in the current quarter. On the consolidated basis, company has reported 18.93% rise and 3.17% decline in net profit compared to same quarter last year & previous quarter respectively. Gross Interest income reported at Rs. 9,960 Cr. Grew by 15.58% and 0.24% for the quarter under review as compared to the quarter ended September, 2014 and June, 2015 respectively. Net interest income at Rs. 4,062 Cr. grew by 15.24% & 0.14% on Y-o-Y basis & Q-o-Q basis and net interest margin stood at 3.85%. Other income (majorly fee income) is 17% of total income. Core operating income (excluding earnings on sale of investments) increased by 19.67% at Rs. 3460 Cr. Asset quality of the bank deteriorated marginally. The bank's Gross NPA and Net NPA for the July-September quarter of the current fiscal increased to 1.38% and 0.48% as compared to 1.34% and 1.34% in the same quarter of the previous year respectively. Proportion of CASA as on 30-Sep-2015 stood at 44%. Return on assets was 1.64%. Latest Key Indicators of the stock are as follows:<br /><a class="btn btn-tislider-two" href="http://www.ifminvest.in/axis-bank-ltd-declared-the-financial-results-of-q2-fy16/">Read More</a>

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. <strong>Latest Key Indicators of the stock are as follows:</strong><br /><a class="btn btn-tislider-two" href="http://www.ifminvest.in/zee-entertainment-enterprise-ltd-has-declared-the-results-of-q2-fy16/">Read More</a>

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 […]

Market Outlook 2014, SBI Magnum Balanced Fund – Mr. R Srinivasan (CIO, SBI Mutual Fund)

MINUTES OF MEETING Venue Board room, Chandigarh office Date November 20, 2014 Subject Market Outlook 2014-15, SBI Magnum Balanced Fund Time 1600 Hrs Details Discussion with Mr. R Srinivasan (Chief Investment Officer, SBI Mutual Fund) Duration 45 mins Participants: Internal Iqbal Singh, Anuj Singla, Pankaj Sharma, Akaljot Singh, Jagjit Singh, Vishwapreet Singh, Jagdeep Singh External […]