Recent Posts

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India Credit Cards / Personal & Business Loans / FreeCharge the digital financial services App

« Last post by komal on April 13, 2019, 05:31:49 PM »

FreeCharge is among the top non-bank financial services platforms in the industry. Since inception, the company has cumulatively acquired ~70 mn registered users out of which ~34 mn have transacted through the platform (19 mn quarterly active users and 9 mn monthly active users). FreeCharge has added ~12 mn new customers post its acquisition by Axis bank.

FreeCharge targets the digitally naive customers (18-30 years of age, annual income of Rs0.2-0.6 mn and lives in urban areas). The company continues to focus on customer acquisition and increase customer engagement post registration.

Post-acquisition by Axis Bank, FreeCharge has gradually evolved from a leading digital payment platform to a digital financial services platform. Going ahead, the platform will act as a customer acquisition channel for sourcing small ticket retail products so as to reduce cost of acquisition.

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Multibagger Stock Recommendations / Delta Corp - Review - UBS

« Last post by resh on April 11, 2019, 12:08:00 PM »

Here is Review of Delta Corp Ltd by UBS Securities.

Delta has invested US$10m in lieu of 25% stake in Jalesh Cruises and rights to operate casinos in its cruises. First voyage of Jalesh is scheduled for 17th April'19 and as per company's calendar it's offering ~60 cruises in FY20. Over next 18-20 months, Jalesh is likely to add 2-3 cruise ships and Delta will operate casinos in all the cruise ships, as per management. Current ship has passenger capacity of ~1,600 and offers ~150 gaming positions, we expect Delta to do revenue of Rs150-200m in FY20 which would be enough for break-even.

Using the three-year average of its historical multiples, we value Delta at 28x PE and 18x EV/EBITDA on its FY21E (prior avg. of FY20E and FY21E) to arrive at our price target of Rs340.00.

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IPOs and Rights Issues / Re: Polycab India - Reviews

« Last post by resh on April 05, 2019, 12:39:07 PM »

Reliance Securities Analyst Araft Saiyed said,

Wires and cables industry is expected to see sustained demand driven by multiple favourable factors, and we expect growth momentum to
sustain, going ahead as well. Assuming moderate revenue growth of 12% CAGR through FY19-21E, the Company is valued at 11.3x FY21E earnings, which appears to be justified considering its business model, steady growth and healthy return ratios. Hence, we recommend SUBSCRIBE to the Issue.

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IPOs and Rights Issues / Polycab India - Reviews

« Last post by resh on April 05, 2019, 12:38:28 PM »

Here are the Equity Research Analysts Recommendations of Polycab India IPO / Public Issue

ICICI Direct Analysts Sanjay Manyal & Hitesh Taunk said

At the IPO price band of | 533-538, the stock is available at a price to earnings multiple of 22x FY18 EPS. We believe the issue is available at attractive valuation, considering its leadership position in the wire & cable industry, low debt/equity (~0.3x) and attractive return ratios (RoCE ~21%, RoE ~16%). We recommend SUBSCRIBE to the issue at the offer price.

Motilal Oswal Analysts Siddarth Khemka and Pooja Doshi said,

At the upper price band, Polycab is valued at 16.8x P/E on FY19 annualized basis, compared to KEI Industries 18.4x P/E (MOSL estimates) and Finolex Cables 17.2x P/E FY19E (Bloomberg estimates). Given the strong industry growth trends, leadership position, healthy financials and comfortable valuations, we are positive on the IPO. Hence recommend SUBSCRIBE.

Gupta Equities Ltd released the following note,

Polycab India Ltd stands to gain from operating leverage. At a P/E at lower band of 25X* and P/E at higher band of 25.3X* for FY19 EPS. We believe its strategy of making market presence more prominent in wires and cables sector and investment in technology will improve operating efficiency. We assign a Subscribe rating to the IPO.

ShareKhan Released the following note to us,

Polycab has a strong growth profile with revenue, operating profit and net profit reporting a CAGR of  10%, 23% and 42%, respectively, during FY2016-FY2018. Further, it has low net debt/equity of 0.2x as on December 2019. At the upper price band, Polycab is valued at a P/E of 21.6x its FY2018 earnings which is much lower than the industry average but almost at par with close peers like KEI Industries and Finolex cables. However its RoE is tad lower than industry players barring Finolex cables.

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IPOs and Rights Issues / Re: Metropolis Healthcare - Review + Recommendations

« Last post by resh on April 04, 2019, 08:31:04 PM »

Motilal Oswal Analysts Pooja Doshi and Arjun Goyal said,

Over FY16-18, Metropolis recorded Revenue/ PAT CAGR of 16.3%/ 15.7%. At the upper price band, Metropolis is valued at 37x P/E and 22x EV/EBITDA on 9MFY19 annualized basis, compared to Dr. Lal’s 42x P/E and 26x EV/EBITDA (FY19E). Despite rich valuations, leadership position in the niche diagnostic business along with healthy financials makes us positive on Metropolis from a long term perspective. SUBSCRIBE for Long Term.

T Ranvir Singh IPO Analyst at IDBI Capital said to SUBSCRIBE with the following note,

The offer price implies a P/E ratio of ~37x annualized earnings for FY19, which is ~16% discount to Dr lal Pathlabs but 22% premium to Thyrocare (Thyrocare’s 30x /Dr Lal Pathlab’s 44x FY19 EPS). We keep positive stance on the IPO.

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IPOs and Rights Issues / Metropolis Healthcare - Review + Recommendations

« Last post by resh on April 04, 2019, 08:16:26 PM »

Here are the various Analysts & Brokerage Reviews and Recommendations of the Metropolis Healthcare Limited

Advik Shetty of Aditya Birla Money says a Subscribe with the following Note,

We believe that due to its wellestablished brand, broad range of test offerings and economies of scale, Metropolis is well poised to increase its market share in the future. At the upper end of the price band, Metropolis is valued at a P/E of ~38x on TTM basis which is largely in line with the average of the other two listed players in the diagnostics space. We believe the company is well‐poised to deliver strong earnings growth in the forthcoming years considering the fragmented & under penetrated diagnostic market. We recommend investors to SUBSCRIBE the issue and hold the stock with a long term perspective.

Ayush Jain at IndSec Securities has the following recommendation,

Though the issue seems to be priced slightly on the higher side, we believe increased health awareness, rise in per capita income and better penetration of diagnostic service centers in tier-2 and tier-3 would drive growth. Further, the company plans to shift its focus from B2B (~57% of revenue) to B2C (~43% of revenue) in order to improve its realization and receivables position, albeit gradually. Metropolis is well placed to benefit from the changing demographic trends and increased awareness amongst individual. Hence we recommend a Subscribe rating to the issue from a long term perspective.

Milan Desai IIFL IPO Research Analyst told,

Metropolis business is more comparable to Dr. Lal Pathlabs than Thyrocare. Considering that Metropolis barely lags in or has similar operational parameters (like EBITDAM and asset turn) like Dr. Lal Pathlabs, it seeking similar valuations is justifiable. At Rs880/share (upper band), Metropolis is seeking ~39x/~26x its FY19 annualised/FY21E EPS against ~43x/~27x FY19 annualised/FY21E EPS for Dr. Lal Pathlabs. We recommend SUBSCRIBE to the Issue from a longer-term perspective.

Ventura Securities without naming any Analyst has a SUBSCRIBE recommendation. The brokerage house appears to be Sort of Poor in Equity Research as it is unwilling to invest in Quality Human Resource.

BP Equities Wealth Management IPO Research Team said,

The company is seeking to expand its presence in a large under-penetrated market which is dominated by smaller, unorganized players. Though the issue appears fully priced, asset light and debt free status makes this offer lucrative. Considering the superior band trust, strong growth potential in underpenetrated tier2 tier3 cities coupled with better margins, we give a “SUBSCRIBE” rating on this issue for the long term investors.

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Mutual Funds in India / Aditya Birla Sun Life Top Executives Pay

« Last post by resh on April 02, 2019, 09:28:28 PM »

Aditya Birla Sun Life Mutual Fund is a leading Mutual Fund Management Company in India. With the Rise in SENSEX / NIFTY the Pay Packages of Top Executives, Fund Managers have seen their total remuneration rise in the last 24 months. Earlier their remuneration for FY 2017 is as discussed here

Executive Remuneration for the financial year 2017‐2018

1 A Balasubramanian Chief Executive Officer CEO 6 ,94,96,718
2 Maneesh Dangi Executive Vice President Co ‐ Chief Investment Officer 5 ,63,22,980
3 Mahesh Patil Executive Vice President Co ‐ Chief Investment Officer 5 ,23,35,423
4 Anil Bhavanji Shah Vice President Senior Portfolio Manager 2 ,44,38,152
5 Satyabrata Mohanty Vice President Senior Portfolio Manager 2 ,07,91,531
6 Ajay Garg Vice President Senior Portfolio Manager 1 ,79,82,063
7 Kaustubh Gupta Assistant Vice President Fund Manager 1 ,62,16,537
8 Jayesh Gandhi Vice President Senior Portfolio Manager 1 ,54,86,740
9 K S Rao Vice President Head ‐ Investor Education 1 ,51,90,669
10 Anil Shyam Executive Vice President Co ‐ Head Retail Sales and Distribution 1 ,41,15,218
11 Molly Kapoor Vice President Head ‐ Marketing 1 ,38,36,739
12 Sidharth Damani Executive Vice President Co ‐ Head Retail Sales and Distribution 1 ,31,88,068
13 Bhavdeep Bhatt Senior Vice President Head ‐ Institutional Sales 1 ,29,51,624
14 Girish Kamath Senior Vice President Head ‐ HR & Administration 1 ,18,94,065
15 Abhishek Singhal Deputy Vice President Head ‐ Products 1 ,16,73,929
16 Parag Joglekar Senior Vice President Head ‐ Finance and Accounts 1 ,13,19,923
17 Deepak Gupta Senior Vice President Head ‐ Sales Enablement & Emerging Markets 1 ,11,75,565
18 Sunaina Da Cunha Deputy Vice President Fund Manager 1 ,09,08,564
19 Keerti Gupta Senior Vice President Chief Operations Officer 1 ,08,79,411

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India Credit Cards / Personal & Business Loans / Growth by Volume - multi-carding a major driver

« Last post by resh on April 02, 2019, 01:08:36 PM »

The recently released report from CIBIL provides good insights into the current state of the consumer loan growth journey. Given their access to all market participants (banks and NBFCs) we see this product as one of the most important reports to understand these businesses.

Credit Card
Overall receivables grew 31% yoy led by 29% yoy volume growth and 3% yoy growth in average balances. Growth is focused primarily on prime and near prime (650-750). Origination volumes increased 22% yoy with ~50% of this coming from consumers having a single card.

Personal Loans
Overall loans grew ~70% yoy led by 30% yoy volume growth and 4% yoy growth in average ticket size (Rs 0.2 mn).

Tier-1 cities namely Mumbai, National Capital Region (NCR), Chennai, Kolkata, Hyderabad, Bengaluru, Pune and Ahmedabad
account for 50% of outstanding retail loans.

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India Credit Cards / Personal & Business Loans / Re: HDFC Credit Card Settlement

« Last post by cardbhai on February 28, 2019, 11:12:06 PM »

You can Photograph and send the details of letter of settlement to feedback @ cardbhai . com and also send the number here. I will verify it for you.

Thanks

10

India Credit Cards / Personal & Business Loans / HDFC Credit Card Settlement

« Last post by MARIA on February 18, 2019, 03:14:26 PM »

Hi Team

Pl guide me

I had HDFC Credit Card payment due since i left the job i was unable to pay it.After a year i got a call from HDFC Legal Head stating that if you are not able to pay you can go for settlement. Or we will put the case in the court after that we will not be able to do anything. Now he has given some toll free number to call and give one reference number and get your credit call settlement letter. They have finalized it for Rs.54000/- to pay in 2 installments.

But i feel that person is not genuine. How do i check this. Since that person is forcing me to pay it immediately

Kindly advise