Global markets surged last week, fueled by several positive developments. Federal GReserve Chairman Jerome Powell signaled to cut interest rates this year, reiterating officials focus on inflation goal of 2 percent. European markets climbed on the back of better-than-expected German trade data and easing inflation. Headline consumer price index fell to 2.6% in February, from January's 2.8%; economists polled by Reuters had forecast a headline reading of 2.5%. German exports rose more than expected due to rising demand from EU countries and China, rising by 6.3% in January compared with the previous month. The European Central Bank is likely to hold rates steady despite inflation dipping slightly. Japanese stocks rallied due to strong corporate earnings and government measures promoting investment. Japan seems on track for a positive cycle of rising inflation and wages. Chinese stocks hit highs on news of a "around 5%" economic growth target for 2024 and increased defense spending. However, the services sector showed a slight slowdown. The Caixin services purchasing managers' index slipped to 52.5 in February from 52.7 in the prior month. Pan Gongsheng, governor of the People's Bank of China said that there was room to further cut banks' reserve requirements — the amount of cash they need to have on hand. Pan's dovish comments appeared to stoke hopes for further easing by the Chinese central bank.
Back at home, the Indian stock market (Sensex and Nifty) mirrored the global trend, buoyed by positive overseas cues and strong domestic data. Powell's assurance of potential rate cuts and a low recession risk boosted confidence. Sectorial rotation was seen in the market with private banks gaining momentum and supporting the index. India's GDP grew at 8.4% in the last quarter, with strong manufacturing and positive high-frequency indicators for the current quarter. Investors will continue to monitor both global and domestic developments for further market direction.
On the commodity market front, the CRB index strengthened as the dollar index fell, supported by robust data, closing near 317. The dollar was mostly lower on weaker Durable Goods Order and GDP numbers. Gold prices saw a modest increase for the second consecutive week. Conversely, silver prices declined for the second week due to weaker base metals data. Natural gas gained much-needed support after four consecutive weeks of decline, while crude oil prices remained in positive territory with limited upside after a larger-than-expected build in U.S. crude stockpiles stoked worries about slow demand, while signs that U.S. interest rates could remain elevated for longer also added to pressure.
SMC Global Securities Ltd. (hereinafter referred to as “SMC”) is a registered Member of National Stock Exchange of India Limited, Bombay Stock Exchange Limited and its associate is member of MCX stock Exchange Limited. It is also registered as a Depository Participant with CDSL and NSDL. Its associates merchant banker and Portfolio Manager are registered with SEBI and NBFC registered with RBI. It also has registration with AMFI as a Mutual Fund Distributor.
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SMC or its associates including its relatives/analyst do not hold any financial interest/beneficial ownership of more than 1% in the company covered by Analyst. SMC or its associates and relatives does not have any material conflict of interest. SMC or its associates/analyst has not received any compensation from the company covered by Analyst during the past twelve months. The subject company has not been a client of SMC during the past twelve months. SMC or its associates has not received any compensation or other benefits from the company covered by analyst or third party in connection with the research report. The Analyst has not served as an officer, director or employee of company covered by Analyst and SMC has not been engaged in market making activity of the company covered by Analyst.
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SAFE HARBOR STATEMENT: Some forward statements on projections, estimates, expectations, outlook etc are included in this update to help investors / analysts get a better comprehension of the Company's prospects and make informed investment decisions. Actual results may, however, differ materially form those stated on account of factors such as changes in government regulations, tax regimes, economic developments within India and the countries within which the Company conducts its business, exchange rate and interest rate movements, Impact of competing products and their pricing, product demand and supply constraints. Investors are advised to consult their certified financial advisors before making any investments to meet their financial goals.
The company has achieved outstanding operational and financial performance as compared to the previous quarter with recovery in petrochemicals, new energy and retail segment, financial services and sustained growth in Digital Services business. Moreover, it continues to deliver multiple growths across businesses and ongoing investments and acquisitions would continue to drive the next leg of growth. Retail, Telecom and new energy are poised to become the upcoming growth drivers over the next two-to-three years, given the growth initiatives in each of businesses with a focus on the India opportunity. Thus,itis expected thatthe stock will see a price target of Rs.828 in 8 to 10 months' time frame on current P/Bv of 8.43xandFY25BVPSofRs.98.20.
The company`s India Branded Business continued incremental improvement in core operations. The Specialty and Animal health segment continued its strong outperformance. The US business is looking better with new facilities already commercialized. Recent new launches and pipeline of new launches would drive future growth. R&D cost optimization would also benefit the company going forward. Thus, it is expected that the stock will see a price target of Rs.1187 in 8 to 10 months' time frame on current P/E of 4.39x and FY25 of Rs.270.42.
The stock closed at Rs.1563.75 on 07th March, 2024. It made a 52-week low of Rs.990.20 on 20th March, 2023 and a 52-week high of Rs.1694.50 on 15th January, 2024. The 200 days Exponential Moving Average (DEMA) of the stock on the daily chart is currently at Rs.1439.
After hitting 52 week high of 1694.50 in January 2024, the stock witnessed a series of profit booking as once again prices seen retraced back towards its 200 DEMAon daily charts. Since then a series of consolidation has been witnessed into a stock as prices are seen fluctuating in broader range of 1450-1550 levels. At the current juncture, the stock has formed a Triple bottom pattern and has given a fresh breakout above the W pattern as well. The momentum is likely to carry towards north after a breakout on back of follow up buying. Therefore, one can buy the stock in the range of 1550-1560 levels for the upside target of 1730-1740 levels with SL below 1450 levels.
The stock closed at Rs.583.60 on 07th March, 2024. It made a 52-week low at Rs.380.70 on 16th March, 2023 and a 52-week high of Rs.615.60 on 13th JULY 2023. The 200 days Exponential Moving Average (DEMA) of the stock on the daily chart is currently at Rs.525.
Since last 6 to 8 month, the stock has been trading in a downward sloping channel with formation of lower bottom pattern as stock retraced back towards 480 levels after making its 52 week high of 615.60 in July 2023. Last week, the stock has witnessed a fresh breakout above its long term bearish channel after taking support at its 200 DEMAon weekly interval. On broader charts, the stock has also formed an inverted head & shoulder pattern as well and clearly is on verge of fresh breakout above the neckline of the pattern formation. Therefore, one can buy the stock in the range of 580-585 levels for the upside target of 685-695 levels with SL below 520 levels.
Disclaimer : The analyst and its affiliates companies make no representation or warranty in relation to the accuracy, completeness or reliability of the information contained in its research. The analysis contained in the analyst research is based on numerous assumptions. Different assumptions could result in materially different results.
The analyst not any of its affiliated companies not any of their, members, directors, employees or agents accepts any liability for any loss or damage arising out of the use of all or any part of the analysis research.
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Last week, Nifty reached record highs and closed nearly unchanged on a weekly basis, while Banknifty saw a gain of over 1% for the week. Noteworthy sector performances included outperformance in psu bank, pharma and energy stocks, while media, small-cap and IT stocks underperformed. In the Nifty options, the highest call open interest was observed at the 22,500 strike, followed by the 22,600 strike. On the put side, the highest open interest was at the 22,500 strike, followed by the 22,400 strike. For Banknifty, the highest call open interest was at the 48,000 strike, and the highest put open interest was at the 47,500 strike. Implied volatility (IV) for Nifty's call options settled at 12.79%, and put options concluded at 13.27%. The India VIX, a crucial market volatility indicator, ended the week at 14.30%. The Put-Call Ratio Open Interest (PCR OI) stood at 1.59 for the week, signalling more put writing than call, indicative of a bullish sentiment. For upcoming week, we expect Bullish momentum to remain intact in Indian markets and Bank nifty is likely to outperform once again. Traders are advised to use dips for creating fresh long position and avoid any short positions as of now.
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***The highest call open interest acts as resistance and highest put open interest acts as support.
# Price rise with rise in open interest suggests long buildup | Price fall with rise in open interest suggests short buildup
# Price fall with fall in open interest suggests long unwinding | Price rise with fall in open interest suggests short covering
Turmeric prices extended their gains with improved demand in physical market. Below normal supplies and aggressive buying by stockists helped prices to trade on positive bias. Impact of lower production is being seen on arrival pace as about 9050 tonnes of arrivals touched the major APMC market so far in Mar'24 against the 18373 tonnes of turmeric of previous year. Prevailing supply tightness is likely to lure stockists to buy turmeric at every dips in prices. Prices seasonality of turmeric suggests prices remain higher during Mar mainly due to festive buying. In the wake of series of festivals ahead in coming months and commencement of wedding season, demand is likely to keep buyers engage in active buying. Production is likely to be dropped by about 14% Y-o-Y due to lower area under turmeric amid tumbling yield and may stay in between 9.2-9.5 lakh tonnes. However, report of bleak exports in recent months is likely to cap the excessive gains as turmeric export from India dropped 13% Y-o-Y in Dec'23 reported at 10.4 thousand tonnes due to lower buying from Bangladesh. Continuous surge in prices will keep global buyers away from aggressive buying that may cap the excessive gains. India exported about 121.17 thousand tonnes of turmeric during Apr'23-Dec'23 down by 2.27% Y-o-Y. Turmeric prices are expected to trade in range of 16500- 20000 levels.
Dhaniya prices extended their gains tracking improved demand in physical market as well as in overseas market. Fear of yield losses sparked with recent rainfall in northern and central part of India supported buying activities in physical market. Production is likely to be down about 10-15% Y-o-Y due to fall in area and yield. India exported about 78.47 thousand tonnes of coriander during Apr-Dec in year 2023 compared to 24.8 tonnes of previous year up by 215% Y-o-Y. Firmness in dhaniya is likely to remain intact due to bleak supply outlook supported by lower production estimates. However, new arrivals are likely to commence in coming weeks that will cap the excessive gains. Dhaniya prices are likely to trade in range of 7700-8900.
Jeera futures traded mixed to higher with improved export enquires. Jeera prices have turned competitive at prevailing rates that attracted international buyers. Exports seasonality of jeera suggest that export demand remains higher during Mar due to strong demand prospects ahead in wake of series of festivals in Mar-Apr. Jeera export from India rose in Dec'23 with increased demand as India exported about 12.23 thousand tonnes in Dec'23 as compared to 11.79 thousand tonnes of previous year. Gains are likely to be limited in expectations of a bumper crop. Production for the year 2024-25 is likely to be increased by 65%- 70% Y-o-Y to 10.3 million bags as per FISS with a substantial rise in cultivation area. Jeera prices are likely to trade in range of 21000-32500.
Gold has soared to unprecedented heights, surpassing the $2,150 mark, marking its highest peak ever. This surge comes as the dollar and Treasury yields falter amidst hopes of imminent interest rate cuts by the US Federal Reserve, in light of a gloomy economic outlook. Gold tends to become more attractive in times of instability with demand surging over the past two years, and this is likely to continue over 2024 amid geopolitical tensions and the current economic climate. Fed Chair Jerome Powell hinted at a potential easing of restrictive policies "at some point this year." In addition, recent ADP data reveals a lowerthan-expected rise in US private employment for February, while JOLTS reports indicate job openings falling slightly below forecasts. Investors eagerly await Powell's testimony before the US Senate on Thursday, along with updates on jobless claims, trade balance, and consumer credit. With traders now estimating a 70% probability of a June Fed rate cut, Treasury yields have also dipped, with the US two-year note yielding 4.543%, down 1.9 basis points, and the 10-year note at 4.122%, down 3.3 basis points. On Comex, gold prices have broken past $2,140 and are holding steady above it. The next anticipated target is $2,210, with support around $2,120. Meanwhile, silver prices on COMEX are expected to trade with a bullish bias within the range of $23.80 to $26.00. Looking ahead in the week, gold prices on MCX are likely to maintain their bullish momentum, targeting 66,200 while finding support near 63,500. Silver prices may fluctuate within the range of 73,500 to 78,000. It's advisable to consider buying on dips amidst this bullish trend.
Crude oil and gasoline prices experienced modest gains following an initial decline but ultimately closed lower. The dollar index's drop to a one-month low on Wednesday provided some support to energy prices. Crude prices saw further increases after the weekly EIA report revealed that crude supplies rose less than anticipated, while gasoline stockpiles fell more than expected. Additionally, a rally in equities boosted confidence in the economic outlook, which is favorable for energy demand. Crude oil prices also surged after Saudi Aramco increased the price of its Arab light crude for April delivery to Asian customers by $1.70 per barrel, exceeding expectations. The recent support for crude oil stemmed from China's announcement of its annual growth target of around 5%, leading to speculation that the Chinese government will implement additional stimulus measures. Moreover, OPEC+ announced an extension of its current crude production cuts until the end of June, with adjustments subject to market conditions thereafter. However, OPEC's February crude production increased by 110,000 bpd to 26.680 million bpd, with Iraq and the UAE exceeding their production quotas, which weighed on oil prices. Meanwhile, Russian crude refining rebounded from Ukrainian drone attacks, negatively impacting prices. Despite initial disruptions, Russian facilities targeted by attacks have since been repaired and are operating near capacity. Looking ahead, oil prices may find support around 6400 and face resistance near 6700. On the other hand, natural gas prices rose despite mild forecasts, as producers reduced output amidst high inventories. Long-term weather forecasts predict little increase in demand, with most states expecting seasonal or better temperatures over the next six to 10 days. In the coming week, natural gas prices may continue to climb, with support likely near 145 and resistance near 175.
Base metals may trade with bullish bias as the reassurance from U.S. Federal Reserve Chair Jerome Powell that the central bank would likely cut rates in the coming months, which could lead to an improvement in economic activities and better metals demand. But uncertainty over demand and the lack of details on Chinese stimulus measures may weigh on the counter. A lack of policy support from top consumer China at its key parliament meeting left traders disappointed. China's 5% growth target for 2024, as widely expected, failed to cheer up investors. Copper may trade in the range of 718-743. Copper inventories in the LME-registered warehouses continued to slide and reached their fresh six-month low, the daily LME data showed. Yangshan copper premium rose to $60 a ton, the highest since Jan. 19, indicating improving appetite for copper import into China. Top consumer China imported 902,000 tons of unwrought copper in the first two months of this year, up 2.6% from a year ago, according to the General Administration of Customs. Zinc can trade in range of 210-230. The zinc price may continue higher due to 20% production cut at Young Poong Corp's Seokpo smelter in South Korea. Lead can move in the range of 175- 184. Aluminium can trade in the range of 197-210. The European Union has been discussing the possible ban of Russian aluminium for months. If the EU decides to stop buying aluminium from Russia with new sanctions, it could cause a shortage and push aluminium prices up. Steel long (Mar) is likely to trade in the range of 41700-43400 with negative bias.
It closed at Rs.74138.00 on 06th Mar 2024. The 18-day Exponential Moving Average of the commodity is currently at Rs.72651.26. On the daily chart, the commodity has Relative Strength Index (14-day) value of 70.729. Based on both indicators, it is giving a buy signal.
One can buy near Rs.73800.00 for a target of Rs.75500.00 with the stop loss of 72900.
It closed at Rs.218.60 on 06th Mar 2024. The 18-day Exponential Moving Average of the commodity is currently at Rs. 216.19. On the daily chart, the commodity has Relative Strength Index (14-day) value of 76.513. Based on both indicators, it is giving a buy signal.
One can buy near Rs.217 for a target of Rs. 230 with the stop loss of 210.
It closed at Rs.8176.00 on 06th Mar 2024. The 18-day Exponential Moving Average of the commodity is currently at Rs.7973.83. On the daily chart, the commodity has Relative Strength Index (14-day) value of 78.504. Based on both indicators, it is giving a buy signal.
One can buy near Rs.8100 for a target of Rs.8700 with the stop loss of 7800.
NOTE: *M.High / M.Low stands for Monthly High / Monthly Low
The CRB index strengthened as the dollar index fell, supported by robust data, closing near 317. The dollar was mostly lower on weaker Durable Goods Order and GDP numbers. Gold prices saw a modest increase for the second consecutive week. Conversely, silver prices declined for the second week due to weaker base metals data. Natural gas gained muchneeded support after four consecutive weeks of decline, while crude oil prices remained in positive territory with limited upside after a larger-than-expected build in U.S. crude stockpiles stoked worries about slow demand, while signs that U.S. interest rates could remain elevated for longer also added to pressure. Crude inventories rose for the fifth consecutive week, increasing by 4.2 million barrels to 447.2 million barrels in the week ended Feb. 23. Copper prices extended their gains for the third week, reaching 735 from 7000. Lead prices declined for the second week but saw renewed buying interest. Zinc prices continued their upward trend for the third consecutive week. Base metals showed some buying momentum on hopes that next week's annual parliamentary meeting in top consumer China could provide clues on further economic stimulus.
Castor seed prices fell for the second week, while cotton experienced a surprising rally, starting at 55000 and reaching 63500 r following supply tightness in physical market. Arrivals pace has been down due to lower production in domestic market. Aggressive buying by Cotton Corporation of India at MSP also helped prices to stay firm. During the cotton season 2023-24, CCI has procured 3265971 bales under MSP operation as on 21st Feb'24. Cotton oil seed cake prices rose for the third week, while the Guar market saw a retreat from higher levels due to subdued export of guar derivative products. Guar meal export dropped 43% Y-o-Y to 7.61 thousand tonnes in Dec'23 with reduced buying from Norway and Netherland. Jeera traded at multi-month lows, while turmeric continued its upward trajectory for the third consecutive week. Turmeric prices extended its gains on prevailing concerns over supply tightness in major producing states. Prices seasonality of turmeric suggests prices remains higher during Feb-Mar mainly due to festive buying. Production is likely to be dropped by about 14% due to lower area under turmeric amid tumbling yield. Exports seasonality of jeera suggest that export demand remains higher during Feb-Mar due to strong demand prospects ahead in wake of series of festivals in Mar-Apr. Dhaniya prices increased for the second week. Growing worries over quality of crop due to emerging weather risk in major producing states supported fresh buying in dhaniya. Production is likely to be down about 10- 15% Y-o-Y due to fall in area and yield.
The Second Advance Estimates of production of major crops for the year 2023-24 have been released by the Ministry of Agriculture and Farmers Welfare. Total foodgrain production in 2023-24 is estimated to be 309 million tonnes (mt), according to the second advance estimates. The Kharif foodgrain production is estimated at 1541.87 LMT, and Rabi foodgrain production is estimated at 1551.61 LMT. From the last agricultural year, the summer season has been segregated from Rabi season and therefore this year Second Advance Estimate of area, production and yield includes only two seasons i.e. Kharif and Rabi season.
This estimate has been primarily prepared on the basis of information received from State Agricultural Statistics Authorities (SASAs). The data received has been validated and triangulated with information received from Remote Sensing, Weekly Crop Weather Watch Group inputs and other agencies. Further the climatic conditions, previous trends, price movements, mandi arrivals etc. are also considered while preparing the estimates.
The details of production of various crops (Kharif & Rabi only) are given as under:
Overall foodgrain production for both kharif and rabi seasons (monsoon and winter crops) has been pegged lower on year due to patchy monsoon, weighing on water reservoir levels and shifting the crop calendar. Lower crop output may keep the prices of some crops such as rice, tur, urad and maize firm, adding to the inflationary pressure.
The Indian Rupee surged to a nearly six-month high as the US Dollar weakened globally following Federal Reserve Chairman Jerome Powell's mildly dovish stance in its latest appearance in the US Senate. Despite robust inflation and hiring data in January, Powell acknowledged that a rate cut is likely later this year as progress is made in this area. Futures are currently pricing in a 70% chance of a 25-basis-point cutfrom the Fed. Meanwhile,the RBI's $5 billion USD/INR sell/buy swap maturing next Monday is expected to increase demand for dollars. Market consensus suggests thatthe RBI is likely to take delivery of the swap, removing $5 billion from the system and injecting proportionate rupee liquidity. This move may support the USD/INR pair next week. On the global front, the Euro and the Pound strengthened against the US Dollar, supported by the softer dollar. The Pound/Dollar pair hit a one-month high above $1.27, while the Euro faced some pressure ahead ofthe European Central Bank's (ECB) rate decision at the end of the week. Looking ahead, next week's cues from the ECB rate decision and the FebruaryUS employmentreport are likely to guide the overall direction of the US Dollar. The February non-farm payrolls may see a downward revision, offsetting the blockbuster job numbers from January. Additionally, the CPI readings on March 12 are expected to show flat monthly inflation compared to the previous month's rise of 0.3%. We anticipate the Dollar to weaken against the Euro and the Pound, while the Yen's movement will be closely monitored as markets are gradually taking long positions in the Yen againstthe Dollar, anticipating tweaks to the Bank of Japan's ultra-loosening monetary policy stance.
USDINR (MAR) pair is currently in an Mild Bearish trend as trading below its major Exponential Moving Average where, the 21-day Exponential Moving Average is around 83. However, the pair is in Borderline territory with a Relative Strength Index (14-day) value of 32 on the daily chart. Major support is seen around 82.5 levels, while resistance is expected near 83.1 levels.
One can sell near 83 for the target of 82.5 with the stop loss of 83.25
GBPINR (MAR) pair is currently in an Bullish trend as trading above its major Exponential Moving Average where, the 21-day Exponential Moving Average is around 105.1. However, the pair is in Neutral territory with a Relative Strength Index (14-day) value of 56 on the daily chart. Major support is seen around 104.7 levels, while resistance is expected near 106.2 levels.
One can buy near 105.2 for the target of 106.1 with the stop loss of 104.75
EURINR (MAR) pair is currently in an Bullish trend as trading above its major Exponential Moving Average where, the 21-day Exponential Moving Average is around 90. However, the pair is in Neutral territory with a Relative Strength Index (14-day) value of 55 on the daily chart. Major support is seen around 89.68 levels, while resistance is expected near 91.25 levels.
One can buy near 90.1 for the target of 91.1 with the stop loss of 89.6
JPYINR (MAR) pair is currently in an Bullish trend as trading above its major Exponential Moving Average where, the 21-day Exponential Moving Average is around 55.75. However, the pair is in Borderline territory with a Relative Strength Index (14- day) value of 60 on the daily chart. Major support is seen around 55.3 levels, while resistance is expected near 56.7 levels.
One can buy near 55.75 for the target of 56.65 with the stop loss of 55.3
Proteins makes a strong debut, lists at 43% premium
Fish protein products manufacturer Mukka Proteins' public offer witnessed a bumper debut as its shares listed at Rs 40 on the bourses on March 7, at a premium of 42.86 percent over its IPO price of Rs 28. Even though the listing was strong, it was still below market expectations of a debut with a tripledigit premium as hinted by the grey market premium commanded by the stock. The company's initial public offering (IPO) also got a strong response and was subscribed 136.99 times. Non-institutional investors led from the front, subscribing 250.38 times their allotted quota of shares. Qualified institutional buyers picked 189.28 times and retail investors bid 58.52 times the portion set aside for them. Mukka Proteins, which sells products domestically and exports to more than 10 countries boasts a strong track record of healthy financial performances. In FY23, its net profit grew 84 percent on-year to Rs 47.5 crore while revenue from operations rose 53 percent to Rs 1,177.1 crore. The company raised Rs 224 crore through the offer, which was completely a fresh issue. It aims to use the proceeds to fund its working capital needs and those of its affiliate, Ento Proteins, alongside serving general corporate objectives.
Krystal Integrated Services to launch IPO on Mar 14
Facilities management services company Krystal Integrated Services is set to launch its initial public offering on March 14. The initial share sale will conclude on March 18 and the bidding for anchor investors will open for a day on March 13, according to a Red Herring Prospectus (RHP). The Initial Public Offering (IPO) comprises a fresh issuance of equity shares worth Rs 175 crore and an offer-for-sale (OFS) component of 17.5 lakh shares by promoter Krystal Family Holdings Pvt Ltd. Krystal Family Holdings owns 100 per cent stake in the company. Proceeds from the fresh issue will be utilised for debt payment, supporting working capital requirements, fund capital expenditure for purchase of new machinery and for general corporate purposes. Krystal is a leading integrated facilities management services company with a focus on healthcare, education, public administration, airports, railways and metro infrastructure and retail sectors. Also, it provides staffing solutions and payroll management to customers, as well as private security and manned guarding services and catering services. Inga Ventures Pvt Ltd is the sole book-running lead manager to the issue. Equity shares of the company will be listed on the BSE and NSE.
Popular Vehicles sets price band of Rs 280-295 for its Rs 602-crore IPO
Kerala-based automobile dealer Popular Vehicles and Services Ltd has set the price band at Rs 280-295 a share for its initial public offering that will open for subscription on March 12. The anchor bidding will open on March 11 and the issue will close on March 14. The finalisation of the basis of allotment will be on March 15, while initiation of refunds is scheduled for March 18. The stock will be listed on exchanges on March 19. The IPO comprises a fresh shares of Rs 250 crore by the company, and an offer-for-sale (OFS) of 11.92 million shares by private equity fund BanyanTree Growth Capital II LLC. The automobile dealer plans to spend Rs 192 crore out of the net fresh issue on repaying debt of its own and of certain subsidiaries, while the rest will be kept for general corporate purposes. As of December 2023, the amount of consolidated debt on its books was Rs 637.06 crore. The company caters to the complete life cycle of vehicle ownership, right from the sale of new vehicles, servicing and repairing vehicles, distributing spare parts and accessories, to facilitating sale and exchange of pre-owned vehicles, operating driving schools and facilitating the sale of third-party financial and insurance products has recorded 90.3 percent on-year growth in net profit at Rs 64.07 crore for the financial year ended March FY23, though there was a bit of pressure on the operating margin front. Revenue from operations grew by 40.65 percent to Rs 4,875 crore compared to previous year. Its EBITDA (earnings before interest, tax, depreciation and amortisation) increased by 35.5 percent to Rs 217.2 crore during the same period with margin falling to 4.45 percent, from 4.6 percent in previous year. Net profit for six months period ended September FY24 stood at Rs 40 crore on revenue of Rs 2,835 crore. ICICI Securities, Nuvama Wealth Management, and Centrum Capital are acting as the merchant bankers to the issue.
Ceigall India files IPO papers with Sebi with fresh issue of Rs 618 crore
Infrastructure company Ceigall India has filed preliminary papers with capital markets regulator Sebi to mobilise funds through an initial public offering (IPO). The Ludhiana-based company's IPO is a combination of a fresh issue of Rs 617.69 crore and an offer-for-sale (OFS) of up to 1.43 crore equity shares by the promoters, and an individual selling shareholder, according to the draft red herring prospectus . Promoters and promoter group entities — Ramneek Sehgal, Ramneek Sehgal and Sons HUF, Avneet Luthra, Mohinder Pal Singh Sehgal, Parmjit Sehgal, Simran Sehgal — and individual shareholder Kanwaldeep Singh Luthra are divesting their stakes in the proposed public issue. The offer includes a reservation for subscription by eligible employees. Proceeds from the fresh issue to the tune of Rs 118.78 crore will be used for purchase of equipment, and Rs 344.50 crore for payment of debt, besides a portion will be used for general corporate purposes. Founded in 2002, Ceigall India is an infrastructure construction company with experience in undertaking specialised structural work such as elevated roads, flyovers, bridges, railway over bridges, tunnels, highways, expressways and runways. As of January 2024, the company's order book stood at Rs 9,206.42 crore, with NHAI contributing 82 percent of the order book. Its clientele includes public sector entities like Indian Railway Construction International, Military Engineer Services and Bihar State Road Development Corporation Ltd.
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Bandhan Mutual Fund has announced the launch of the Bandhan Long Duration Fund, an open-ended, long-term debt scheme that invests in instruments such that the portfolio macaulay duration will be over seven years with relatively high interest rate risk and relatively low credit risk. The fund may offer a compelling opportunity for investors who are expecting a fall in the current near-peak interest rates, driven by structural improvements in the economy, according to the press release by the fund house. The new fund offer or NFO of the scheme will open for subscription on March 5 and will close on March 18. The scheme will be managed by Gautam Kaul (debt investments), and Sreejith Balasubramanian (overseas investments). The scheme will be benchmarked against the NIFTY Long Duration Debt Index A-III. The minimum application amount is Rs 1,000 and in multiples of Re 1 thereafter. The minimum application amount for additional purchase is Rs 1,000 and in multiples of Re 1 thereafter.
Bajaj Allianz Life has launched Bajaj Allianz Life Small Cap Quality Index Fund. The fund aims to leverage the growth opportunities in small cap equities. The objective ofthe fund is to provide investors capital appreciation by investing in companies listed in the Nifty Small Cap 250Quality 50 Index. The new fund offer or NFO is open for subscription and will close on March 15. The Nifty Small Cap 250 Quality 50 index has shown superior performance than the broader marketindices over the medium to long term. The fund focuses solely on the top 50 small cap companies based on quality scores, considering factors such as Return on Equity (ROE), financial leverage (Debt/Equity Ratio), and Earnings (EPS) growth.This approach has the potentialto lowerrisk compared to a pure small-cap strategy.
Mahindra Mutual Fund has announced the launch of Mahindra Manulife Multi Asset Allocation Fund, an open-ended scheme investing in equity, debt, gold/silver exchange-traded funds (ETFs) and exchange-traded commodity derivatives. The NFO of the scheme will open for subscription on February 20 and close on March 5. It will subsequently reopen for continuous sale and repurchase from March 15. The scheme aims to balance risk and reward by apportioning investments across specified asset classes and offers LTCG taxation with the benefit of indexation to investors. The scheme will be benchmarked against 45% NIFTY 500 TRI + 40% CRISIL Composite Bond Index + 10% Domestic Price of Physical Gold + 5% Domestic Price of Silver. It will be managed by Renjith Sivaram Radhakrishnan (equity), Rahul Pal (debt) and Pranav Nishith Patel (dedicated fund manager for overseas investment). The asset allocation pattern comprises equity and equity-related instruments (35-80%), debt and money market securities (10-55%), units of gold and silver ETFs and other gold and silver related instruments (10-30%) and units issued by REITs and InvITs (0-10%) with a balanced combination of asset classes that helps mitigate volatility.
Kotak Mutual Fund has launched Kotak Long Duration Fund. Kotak Long Duration Fund is an open-ended debt scheme investing in instruments such that the Macaulay Duration of the portfolio is greater than 7 years with a relatively high interest rate risk and a relatively low credit risk. The new fund offer or NFO of the scheme is open for subscription and it will close on March 6. The scheme will re-open for continuous sale and repurchase on March 13. The investment objective of the scheme is to generate income / capital appreciation through investments in debt and money market instruments. The scheme is benchmarked against NIFTY Long Duration Debt Index-A-III. The scheme will be managed by Abhishek Bisen and Palha Khanna (for overseas investments). No exit load will be chargeable in case of switches made between different plans/options of the scheme. The maximum total expense ratio (TER) permissible under Regulation 52 (6) (c) (i) and (6) (a) is up to 2%.
DSP Mutual Fund has announced changes in fund managers for its two equity-oriented schemes: DSP Flexi Cap Fund and DSP Equity & Bond Fund. The fund house informed the investors about this through a notice cum addendum. The below-mentioned changes are effective from March 1.
Mirae Asset Mutual Fund has filed a draft document with Sebi for the Nifty MidSmallcap400 Momentum Quality 100 ETF. Mirae Asset Nifty MidSmallcap400 Momentum Quality 100 ETF will be an open-ended scheme replicating/tracking Nifty MidSmallcap400 Momentum Quality 100 Total Return Index. The investment objective of the scheme is to generate returns, before expenses, that are commensurate with the performance of the Nifty MidSmallcap400 Momentum Quality 100 Total Return Index, subject to tracking error. The scheme will be benchmarked against Nifty MidSmallcap400 Momentum Quality 100 TRI (Total Return Index) and managed by Ekta Gala and Vishal Singh. The creation unit size for the scheme shall be 2,10,000 units. The minimum application amount will be Rs 5,000 per application and in multiples of Re 1 thereafter. Units will be allotted in whole figures and the balance amount will be refunded. There will be no exit load for investors transacting directly with the AMC as the exit load will be levied on redemptions made by Market Makers/ Large Investors directly with the AMC. Exit load is not applicable for investors transacting on the exchange. The scheme will invest 95-100% in securities included in the Nifty MidSmallcap400 Momentum Quality 100 Index and 0-5% in money market instruments/debt securities, instruments and/or units of debt/liquid schemes of domestic mutual funds. The investment strategy of the scheme will be to invest in a basket of securities forming part of the Nifty MidSmallcap 400 Momentum Quality 100 Index in a similar weight proportion. The investment strategy would revolve around reducing the tracking error to the least possible through regular rebalancing of the portfolio, considering the change in weights of stocks in the index as well as the incremental collections/redemptions in the scheme. Apart of the funds may be invested in debt and money market instruments, to meet the liquidity requirements.
Bandhan Mutual Fund has filed a draft document with Sebi for the Nifty Midcap 150 Index Fund. Bandhan Nifty Midcap 150 Index Fund will be an open-ended scheme tracking Nifty Midcap 150 Index. The investment objective of the scheme is to replicate the Nifty Midcap 150 Index by investing in securities of the Nifty Midcap 150 Index in the same proportion/weightage with an aim to provide returns before expenses that track the total return of Nifty Midcap 150 Index, subject to tracking errors. The scheme will offer both regular and direct plans only with growth options. The minimum application amount for lump sum purchase will be Rs 1,000 and in multiples of Re 1 thereafter. The minimum application amount for SIP will be Rs 100 and in multiples of Re 1 after that with a minimum of 6 installments. The minimum amount for STP will be Rs 500 and any amount thereafter. The minimum redemption amount will be Rs 500 or the account balance of the investor, whichever is less.
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