Monday, September 21, 2020

Financial Freedom, Financially Free

 

Financial Freedom:-

It’s an interesting word in today’s life as people are now want to be financial free but fails quiet often as we are not disciplined in our life in terms of savings and investments. Financially free means that we are getting more than our expenses and loan payment and even save 10-20% after all expenses from our savings and investments. It sounds to be very good but very hard to achieve as people keep on looking for more and more and even on increasing expenses day and day and improving life style.

There are some tips for getting you to be financial free while reaching in 40-45 years of age:-

(i)                  Savings and Investing:-Always make a habit of savings, while you are young you will join any company after graduation or higher education between 24-26 years of age so upto 28- 30 years of age you are not going to get married so you have 4 years for saving more than 50% considering very lower expanses while you are bachelor. Now make a habit for investing all that amount in Mutual funds using SIP as Mutual funds will give you return which no other instrument such as Fixed deposit, ULIP plan et. will give, Since you are unmarried you will take more risk so go for mutual funds until you reach 35 years of age.

(ii)                Don’t over spend:-

Always spend within your limits never follow others which spend more. Don’t take any personal loan or any debt for spending. Whenever you borrow money for any unfruitful work that will only add to your financial burden infact this will complicate your life and goal of life. Usually people at young age has tendency to buy high end bikes and cars by taking huge loans which over the period of time eat out your all the earned money leaving no room for investments.

(iii)             Try to invest in property:-

Best investment will be of your life will be property buy some good property at some good price at good location with the help of elders or good property dealers. Property apart from appreciation will save your rent and even give you rent when you are living with parents this will leads to addition to your monthly investments.

(iv)              Never ever expect higher returns on your investments:-

Never expect the unexpected returns from your investments good investments will give you 12-18% annual returns. If any investment tool offers you higher return never ever invest such returns it will be trap.

(v)                Don’t invest higher amount on non-returnable assets:-

Don’t invest higher amounts on those items which over the period get depreciated such as Cars, bikes, High end LEDs etc. Buy them for as per your needs. This will you will realize over the period of time.

When you become financially free than buy items which you required to fulfill your dreams from additional money you get after all expenses. You will enjoy your life for rest part of life.

 

 

Single Phase to Three Phase conversion

 

In agriculture space there is often requirement of 3 Phase load in order to run their borewells and other equipment related to agriculture. But there is quite often 1 Phase Supply available for their use. Single phase motors are unable to meet their requirement and further taking 3 Phase load from Power Company is quite expensive. So what they do is they convert this single phase power supply to 3-phase supply by their own means, although it’s not allowed by they are doing by their own means.

Now question arises how to convert this single phase power supply to 3-Phase power supply.  One of  most acceptable method is by using Static or rotary Phase converters. Now these converters are very easily available in the market and you can buy them and install in single phase supply and get the 3-Phase output.

Rotary Phase Converter:-

Principle of Operation:- When we start the three phase motor using single phase than once that motor starts rotating than it will continue to rotate and generate third leg of power for three phase applications, Rotary phase converter works on that principle.

An Induction motor i.e. single voltage three phase induction motor have three windings and each winding is connected at its end terminals naming T1, T2 and T3. When we start the three phase motor using single phase supply than we will run the motor initially by using some means than it will keep on rotating at 2/3rd HP of single phase power applied to single winding.

By doing so three phase induction motor which is running under single phase power supply (which is applied at terminals T1 and T2) will generate voltage at T3 with respect to T1 and T2. By doing so what we will get is phase difference of 120 degree between          T1 and T3, T2 and T3 with respect to applied voltage. Thus we will get three phases.

Applications:-

These generate true three phase power. Unlike Static phase converters which provide power during starting of motors these generate three phase power during continue running of machines. 

Further Rotary phase converters are used for high power applications and can function for more than one piece of equipment at a time. These can handle complex load applications.

These are used for following types of loads:-

(i)                  Pumping systems

(ii)                Hydraulics

 

Rotary phase converters are very efficient in terms of providing balanced power.

Static Phase Converters:-

These types of converters will start your load at 3 phase and then switch back to single phase. This will be done by disconnecting the circuit after startup which will further limit the load to 2/3rd of rated capacity. These type of converter are used in application requiring high torque during startup and but not required during running applications. These are most widely used in applications as below:-

(i)                  Drill presses

(ii)                Table Saws

(iii)               Milling Machines

 

Sunday, September 13, 2020

Penny Stocks in COVID-19

 

Due to COVID-19 Pandemic share markets has fallen considerably and has recovered considerably but there are few stocks which become penny stocks and are on path recovery after such a big fall in the valuations of these companies, but despite fall these companies have strong fundamentals. There are few stocks which can rise to their previous highs and even scope of improvement:-

1.       Sadbhav Engineering Limited:-

This company is based in Ahmedabad Gujarat and this company is founded by Vishnubhai Patel in year 1988. This company is field of construction of roads, Highways, Bridges, Mining and irrigation related projects. Stock of company has made high of Rs. 440 Rs/share on Jan 11, 2018 and low of Rs. 23.25 in April,2020 during COVID-19. Since then after lockdown period get over stock has gained some momentum and is trading at Rs.53.80 per share, This stock will give good returns in near terms as projects has been started and government is focused on Infrastructure. Company financial deteriorated considerably in recent past as company has clocked losses of Rs. 123 crores in Q1 2020-21. But with changing scenario company fundamentals will improve in near term.

2.       Prakash Pipes limited:-

Prakash Pipes limited is group company of Prakash Industries and has been recently separated from Prakash Industries and get listed as separate entity on stock market. This company is in business of manufacturing of PVC pipes and fittings since 1981. These manufacture wide range of products such as Garden Pipes, SWR pipes, Plumbing pipes, Column Pipes, Agri pipes etc. Company has recently started Flexible packaging which consists of packaging films and laminates which provides enhanced print quality and good aesthetics and improved shelf life which has picked up sales specially during COVID-19 period and even after that.

Company share has fallen to as low as Rs. 21.60 per share and now rising to make to new highs of Rs. 86 per share. Company is clocking good nos. as well during Jun’2020 quarter company clocked profit of Rs. 7 crores. Company is clocking good profits from last 5 quarters and company is giving dividend of Rs. 1.20 per share every year which good yield. So this company will outperform its peers and will be outperformer in near terms.

 

Laurus Labs Limited, Power bank in Pharma Sector

 Laurus Labs Limited has outperformed the stock market and pharma sector, Pharma Sector is  in flavour since the COVID-19 pandemic and pharma sector has outperformed all indices and in Pharma sector laurus Labs has outperformed the pharma sector by a big way.

Laurus labs limited share has given returns of 300% in last 3 months. Share is trading around Rs. 1260 per share which was  trading at Rs. 450 levels around three months ago. 

Business Model:-

Mr. Satyanarayana Chava, Founder & CEO of the Laurus Labs Limited
Laurus Labs is having headquarters in Hyderabad and it is an Indian pharmaceutical company. This company is involved in the research and development of active pharmaceutical ingredients (API) for anti-retrovirals, hepatitis C drugs, oncology, cardiovascular, anti-diabetics, anti-asthma, and gastroenterology
This Pharma company is the world's largest third party API supplier for anti-retrovirals.
•During Covid-19 Pandemic In March 2020, Laurus Labs received USFDA approval to market hydroxychloroquine sulfate tablets, which earlier are used in treatment by USA  for COVID-19 treatment. 
The company announced that it would supply hydroxychloroquine to its US partner Rising Pharma for clinical trials of preventive treatment of COVID-19.

Financial results:-

From Financial you can see that how its profitability is getting improved quarter on quarter in 1 year profitability has been increase from Rs. 15 crores to Rs. 171 crores i.e. Jump of more than 10 times in profitability. 
Also you can see that sales has been increased from Rs. 550 crores to Rs. 974 crores.
Shareholding:-


From Shareholding you can see that Promoters are holding very good percentage of Shareholding and Pledged share has been reduced from 45.22 % to 31.56%. Further FII are very much bullish in this as they have raised stake in company from 11.29% to 16.06% from last quarter although DII has reduced the stake in company from 41.53% to 32.39%.

Comparative with Lupin and Aurobindo Pharma:-



From above you can see that Laurus Labs has outperformed both Lupin and Aurobindo Pharma.


For more details visit link as below:-



Sunday, August 2, 2020

GMM Pfaudler Limited Share Analysis

GMM Pfaudler Limited:- 
GMM Pfaudler is Gujarat Based Company and Initial name of the company was Gujarat Machinery Manufacturers. It get listed on BSE as GMM in year 1962. In year 1987 Pfaudler, Inc. a USA based company acquired stake of 40% in the company and later Pfaudler Inc,increased the stake in company from 40% to 51% in year 1999. Now this company is wholly owned by Pfaudler, Inc. thereafter changed the name of the company from GMM to GMM Pfaudler limited.

Businesses of the company:-
It is leading supplier of engineered equipment and system for critical applications in the global chemical and pharmaceutical markets. 
Company has acquired Mavag, AG, Switzerland in year 2008 which is specialized in highly engineered equipment for critical filtration,  Drying and Mixing applications to the phama and Biotech industries.
In 2015, Deutsche Beteligungs AG(DBAG) a leading German Private equity company acquired Pfaudler Inc, USA.

Company is supplying following:-
(i) Mixing Systems
(ii) Filtration'
(iii) Drying equipment
(iv) Engineered System
(v) Tailor Made process equipment

Clients of company:-
Following are the major clients of the company:-
(i) Dr Reddy
(ii) Divis Labs
(iii) Natco Pharma
(iv) Sai Life Sciences
(v) Biocon and syngene
(vi) Hikal limited

Infrastructure of the company:-
GMM Pfaudler has plant situated in Karamsad, Gujarat which is about 450 Kms of Mumbai, Their plant is spread over 20 acres. They have very easy accessibility to 2 major airports naming Vadodara and Ahmedabad. They have fabrication facility spread over 38000 sqmeters which is dedicated for cabon steel and alloy steel fabrication.
They have current manpower of 350 employees and they have regional sales and service offices in Delhi, Mumbai, Vadodara, Ahmedabad, Hyderabad, Visakhapatnam and Chennai.

Promoters Holding:-
Individuals/Hindu undivided Family - 8.90%
Pfaudler Inc- 50.44%
Millars Machinery Company Pvt Ltd.- 11.12%
Uttarak Enterprises Pvt. Ltd.-2.81%
A J Patel Charitable Trust- 1.73%
Institutional Holding and Public Holding:-
Mutual Funds - 1.95% out of which
L&T Mutual Fund Trustee Limited-L&T Emerging Businesses Fund-1.10%
Foreign Portfolio Investors- 0.87%
Financial Institutions / Banks-0.13%
Public Holding- 22.02%

Look at the chart of GMM Pfaudler:-
From chart you can see that it already outperforming the share market by a big way and year 2020 it has got doubled already.


Just look at the financial results of the company during COVID-19 period it has clocked profit of Rs, 16.35 crores and company is continuously clocking profit.

For more details visit link as below:-

Sunday, July 19, 2020

YES Bank After FPO

Some Interesting facts about Yes Bank:-

In year 1999 following started the NBFC in partnership with a Netherlands bank naming as Rabobank:-
1.Mr. Ashok Kapur ,ex. country head of ABN Amro Bank
2.Mr. Harkrit Singh , ex. country head of Deutsche Bank
3. Mr. Rana Kapoor, ex. head of corporate finance at ANZ Grindlays Bank 

But bank was formed in Year 2003 and same year Mr. Harkrit Singh quit and remaining 2 started the bank.

Ashok Kapur wife is Mrs. Madhu Kapur and because of her wife, Madhu sister Bindu get married to Rana Kapoor and both become relatives as well.
In Year 2008 during 26/11 during terror attack at Trident Hotel Mr. Ashok Kapur died and whole family get into grief and Mrs. Madhu Kapur Nominated her daughter for Board seat but same was rejected by saying that as per RBI guidelines she doesn't fulfill the requirements for becoming a board member.

Then all of us know what happens thereafter Mrs. Madhu Kapoor filed case against Mr. Rana Kapoor and during 2018 crises of IL&FS  govt. has took over IL&FS and in similar way DHFL and YES bank to safeguard the depositors and not allowing any NBFC or bank into complete shutdown.

RBI has taken control over Yes bank and after takeover SBI is major stakeholder in the company:-

Holding are as below:-

Promoters Holdings are below:-
  

Institutional Holding as on March’2020- 71.03%

Breakup is as below:-

Mutual Funds Holdings- 0.56%

FII Holdings- 1.86%

SBI Holding- 48.21%

ICICI Bank Holding- 7.97%

Axis Bank Holding- 4.78%

Bandhan Bank Holding- 2.39%

The Federal Bank Holding- 1.92%

IDFC First Bank Holding- 1.67%

LIC Of India Along With Its Various Scheme-  1.64%


Public(Non-Institutional Holding) On March’2020

Total Holding- 27.55%
Individual share capital in excess of Rs. 2 Lacs- 0.98%
Individual share capital upto Rs. 2 Lacs-11.79%
Housing Development Finance Corporation Limited- 7.97%
Kotak Mahindra Bank Ltd-3.61%
Clearing Members-1.31%
Bodies Corporate-0.79%
Non-Resident Indian (Nri)-0.66%
HUF- 0.24%
Employees- 0.18%
Trusts-0.02%

Since the Yes Bank takeover by RBI people and corporates has withdrawn lot of money of bank and with FPO (follow-on public offer) it will recover from the huge bad debt and generate funds from the share sale to enhance the capital base.
FPO was having size of Rs. 15000 crores and was Opened from 15th July 2020 to 17th July 2020
FPO Price band was Rs. 12-13 per share.
FPO Subscribed for 95% of total value.
FPO get bids for 11.88 billion shares

Qualified Institutional buyers portion subscribed 1.4 times
Retail Investors section subscribed 43%.
High net-worth Investors portion subscribed 63%.
HDFC Standard Life, BNP Arbitrage fund, HDFC Mutual fund, Norges fund, IFFCO Tokio, PNB Treasury and various large institutional investors subscribed for FPO.
Yes bank has raised nearly Rs. 4100 crores from Anchor investors
Private sector lender YES Bank’s has been able to raise nearly ₹4,100 crore from anchor investors, with more than half of the allocated shares taken by Bay Tree India Holdings.
According to the filing, Bay Tree India Holdings has picked up 187.5 crore equity shares amounting to 54.9 per cent of the anchor investor portion. In all, 14 investors have been allocated shares.
Other investors include HDFC Life Insurance Company, which has picked 9.77 per cent of the anchor investor portion, Singapore-based fund management company Amansa Capital (9.1 per cent), Elara India Opportunities Fund (9.08 per cent), UK-based fund management firm Jupiter India Fund (3.05 per cent), and Jupiter South Asia Investment Company (0.61 per cent).
Bajaj Allianz Life Insurance has been allocated 3.66 per cent of the anchor investor portion and Hinduja Leyland Finance Company has received 4.15 per cent of the anchor investor portion.
Investors should not sell the Shares considering strong management of SBI and other banks and further FPO has met the expectations and funds raised will be sufficient for next 2 years.
Since now parentage are strong of the company Investors should hold the Share for atleast 2 years for getting good returns.
You can’t get private bank share at such a cheap price.
According to company CEO Prashant Kumar raised funda will Common equity Tier-I Capital will go from 6.3% to 13% which will take care for 2 years requirements.
Further few recoveries from Bad debt will improve the books and fundamentals of the bank.
Hold on as much as years possible.

Bid/Offer Opens On

Jul 15, 2020

Bid/Offer Closes On

Jul 17, 2020

Finalisation of Basis of Allotment

Jul 22, 2020

Initiation of Refunds

Jul 23, 2020

Credit of Shares to Demat Acct

Jul 24, 2020

IPO Shares Listing Date

Jul 27, 2020


Sunday, July 5, 2020

Indiabulls housing finance share analysis

Indiabulls housing finance was once the traders favourite share considering that it has given handsome returns in the past and also give healthy dividend.
What has changed for Indiabulls housing finance??

In recent past due to fall of IL&FS all housing finance has gone into disaster and they are still facing the challenge before being getting out of woods. Thereafter there are multiple rumors due to issues rated to corporate governance and COVID-19 due to which stock has fallen from highs of Rs. 1500/- per share to only Rs. 80 odd levels, now this stock has recovered some losses by getting investment from Morgan Stanley.

What next for stock
Company is paying it's NCD at time and posted Q4 results on a good note and further in 2 days they have got investments likes of SBI and Oaktree and other investors with total investment of 4200 crores.
Out of 4200 Crores 2200 Crores it has obtained from Oaktree and Rs. 2000 crores from 7 Public sector banks through NCD's out of which SBI has subscribed for  Rs. 250 Crores, Indian Bank for Rs. 325 crores, Bank of Baroda Rs. 730 crores , United bank of India- Rs. 200 Crores, other investments are from PNB and Central bank of India.

So company is getting funding as required for meeting future requirements and this will be good for company for its near term future.

Now just look at chart of Indiabulls Housing finance :-

Just look at the chart you will see that this stock has outperformed the market until year 2018 where housing finance sector was booming and after IL&FS whole housing finance sector has gone into disaster even companies like DHFL are facing insolvency proceedings. 
But unlike DHFL this stock has strength and company is good hands and even if you see its financial results you will find out that employee cost has been keep on reducing which is as high as Rs. 156 crores in March 2019 quarter results to Rs. 110 crores in March 2020 quarter results. 

Also company has paid Rs. 40.00 per share as dividend in year 2018-19 and Rs. 31.00 per share in FY 2019-20 which indicates company is in good hands and always wants to share profit the shareholders. 

So keep on holding even add more share to get multibagger retruns. 

For more details click link below