Blogs, insights, guides and videos on India's unlisted market — all in one place.
<div class="adn ads" data-message-id="#msg-f:1700110249699321049" data-legacy-message-id="17980143b85424d9"> <div class="gs"> <div class=""> <div id=":mv" class="ii gt"> <div id=":mu" class="a3s aiL "> <div class="gmail_quote"> <div dir="ltr"> <div class="gmail_default"> Fino Payments Bank is focusing on core payments business to scale itself up and is in 'no rush' to be converted into a small finance bank. In the wake of the lethal coronavirus pandemic, the company does not intend to enter the high risk lending to micro, small and medium (MSME) businesses. The payments bank will decide its conversion into a small finance bank, once the apex banker, i.e., Reserve Bank of India, comes up with the specific guidelines. Also, it will be closely watching the banking ecosystem to stabilize, especially the asset side.<!--more--> </div> <div class="gmail_default">In an interview to Financial Express, Rishi Gupta, Managing Director and CEO of Fino Payments Bank said that lending business is going through a lot of pain and small finance bankers are under severe distress because of their microfinance portfolio.He added that they will have to see how the paradigm of lending business changes in the post pandemic era. The company is doing quite well as a payments bank with limited risk, which is an added advantage. Gupta wants to grow what they are doing. Fino payments will take a final call, once the clarity on asset quality emerges. Last month, the central bank RBI had doubled the maximum limit of funds account holders of payments banks can keep in their accounts to Rs 2 lakh. Joyed after the announcement, Gupta said that RBI's decision would help the company to serve more customers and he is keen on making the core business stronger. Fino Payments Bank has turned profitable at the operating level in FY 2019-20 on the back of lowered expenses. The company generated a revenue of Rs 64 crore and profit after tax (PAT) of Rs 7.67 crore in the fiscal, compared to revenue of Rs 53 crore and net loss of Rs 9.22 crore in the preceding year. Since turning profitable, the company has been able to scale up its business. Gupta said that the company's business has grown manifold in the last four to five year. At the end of March 2021, monthly total value of transactions, including both digital and non-digital modes, was around Rs 14,000 crore compared to Rs 8,500 crore in the year ago period. However, the company is still Ebitda negative on a consolidated basis. In FY 2019-20, the company clocked a revenue of Rs 872 crore, compared to Rs 547 crore in the year ago. However, the net loss of the company sharply narrowed to Rs 20 crore from Rs 73 crore, during the period under review. The company has lowered its debt from Rs 328 crore to Rs 240 crore and is trading at a price-to-book value (P/BV) of Rs 22. The company business has not remained unblemished during the second wave of pandemic. So far, has registered lower transactions in the first quarter of the ongoing fiscal. However, the management is hopeful of turnaround once the infection rates would plunge. The management has shown optimism on vaccination. Its key shareholders consist of names like LIC of India, Bharat Petroleum, ICICI Prudential Life Insurance, International Finance Corporation, ICICI Bank, ICICI Lombard General Insurance, Exide Life Insurance, Intel Capital Corporation along with various state owned banking names. </div> </div> </div> </div> </div> </div> </div> </div>
In view of the outbreak of the COVID-19 pandemic, social distancing norm to be followed and the continuing restriction on movement of persons at several places across the country and pursuant to the Ministry of Corporate Affairs Circulars No. 14/2020 dated 8th April, 2020, Circular No. 17/2020 dated 13th April, 2020 and Circular No. 20/2020 dated 5th May, 2020, and circular No. 39/ 2020 dated 31st December 2020, and in compliance with the provisions of the Companies Act, 2013 read with relevant rules made there under, <!--more--><span style="text-decoration: underline;"><em><strong>Notice of Extra- Ordinary General Meeting to be held on Saturday, the 29<sup>th </sup>day of May, 2021, at 4:00 P.M. (IST) through Video Conference / Other Audio Visual Means (“OAVM”)</strong></em></span>, which does not require physical presence of members at a common venue. The shareholders who have time is requested to attend this AGM to get the business insight of the company and IPO plans. We will attend this meeting and provide the minutes of the meeting on UnlistedZone platform. <strong><a href="https://unlistedzone.com/storage/knowledge-logo/NCL-Holdings-EGM-Notice-29-05-21.pdf">EGM Notice Link</a></strong>
<div class="gmail_default">From dungy, dull and sitting pack classes in school and coaching centers to interactive and ultra-engaging sessions, Covid-19 pandemic has made us comfortable with all. With the electronic mode of studies being a new normal, a brand is getting resonate to all of us.</div> <div class="gmail_default"> The edtech sector has grown leaps and bounds since inception, accelerating the growth in recent years. However, Byju's is one name which stands out, amongst other homegrown peers. The passion towards teaching and learning of Byju Raveendran, the founder of the learning app, has led the journey to create India's most valuable edtech startup.</div> <!--more--> <div class="gmail_default"> <strong>Beginning of the Journey</strong> Born in 1980 in a Malayaly family, living in Azhikode- a small coastal village of Kerala, Byju had inclination towards education. The son of a physics and mathematics teaching couple is a multitime CAT centi-percentiler. Despite that, he did not enroll into any top rated B-school, but followed his passion for teaching. He chose to become an engineer. He graduated in Mechanical Engineering from Government Engineering College, Kannur. Engineer by degree, and teacher by choice and entrepreneur by chance, Byju taught MBA aspirants tips and tricks to solve aptitude questions on the terrace of a friend’s house. As the number of students increased, the venue shifted to auditoriums. Byju's was founded in 2011 by Byju Raveendran. He became India's youngest billionaire with a net worth of $3.05 billion as per Forbes list of India's 100 Richest People (2020). Byju's- The Learning App was launched in 2015 and became an instant hit. Prior to the launch of the app, Byju started with offline classes, but later moved to online mode as the popularity gathered amongst the masses. He added other competitive exams and later expanded his portfolio to class 9th to 12th module. Within a few months of launch, the number of enrolled students topped the mark of 2 million. The learning app also coaches for CAT, the civil services examination, the Joint Entrance Examination (JEE), the National Eligibility and Entrance Test (NEET), the Graduate Record Examination (GRE) and the Graduate Management Admission Test (GMAT). Currently, Byju has the expertise with a more than 700 high-quality product development team, 200 content creators who develop quality content; 150 creative media teams to make interesting videos and more than 100 technology teams. Bengaluru headquartered Byju is the world's most valued education technology enterprises. According to recent reports, it is valued at over $15 billion. The company has roped in some of the hot shot private equity funds like Sequoia Capital, Aarin Capital and Sofina, along with Cheng Zuckerberg foundation. <strong>Business Model</strong> Byju’s works on a freemium business model wherein it offers customers both complementary and paid (premium) services. The company asks the students to submit their details on its application or website and offers them a free 15 days trial. Once the free trial is exhausted, the student has to buy the courses from BYJU’s to access the complete content. A business model can be defined as a strategy of how the entrepreneur will make profit. The company has a triple way revenue generation module.</div> <div></div> <div class="gmail_default">a) The first one is through the app. After the free trial of 15 days, students have to purchase the courses to continue their educational journey on BYJU’s. The app offers a variety of test series, courses, etc. which actually compels people to make the purchase. b) BYJU’s offers electronic tablets that customers need to procure when they buy the course of their choice. This tablet has the videos, tests, practice questions, quizzes, etc. pertaining to that course.</div> <div></div> <div class="gmail_default">c) The third revenue generation mechanism is through classroom teaching. However, these classes are restricted to only a few bigger cities in the large states.</div> <div></div> <div class="gmail_default">The business model of Byju’s is brilliant and extremely profitable. This business model has helped Byju’s transform in-to a company worth a decabillion unicorn. <strong>Revenue of Byjus</strong> After becoming an educational learning app, Byju’s revenue was Rs 4 crores in 2011-12, which increased to Rs 12 crores in 2012-2013, Rs 20 crores in financial year 2013-14, Rs 48 crores in fiscal 2014-15 and to Rs 120 crores in financial year 2015-16. This increased to Rs 260 crores in the year 2016-17. In the fiscal year of 2018, Byju’s clocked a revenue close to Rs 500 crore, which jumped to Rs 1350 crore in the next fiscal. Byju’s is currently a part of the Indian markets and the Middle-East. It plans to be a part of the European, American, African, and other Commonwealth markets <strong>Investments</strong> The journey of Byju's classes started with a first ever investment of Rs 50 crore investment from Mohandas Pai and Ranjan Pai in 2013. Byju is the only startup in Asia which is funded by Mark Zuckerberg. Cheng Zuckerberg Foundation is named after Facebook's founder, his better half. In September 2016, Byju received $50 million from the Chan Zuckerberg Initiative (CZI), the philanthropic organisation created by Mark Zuckerberg, founder of Facebook and his wife Dr Priscilla, Times Internet- the digital arm of BCCL, Lightspeed Ventures, Sequoia and Sofina. Byju's attained the decacorn status with an investment by Mary Meeker's Bond Capital. Blackrock and T. Rowe Price entered the company in November 2020, at a heavy value of $12 billion. In April 2021, B Capital, Baron Funds and XN invested $1 Billion in Byju's. <strong>Mergers and Acquisitions</strong> Byju has been very aggressive in acquiring small players in the market, to gain market share at a very high rate. However, this kind of strategy often leads to more cash burn. Also, over acquiring or diversification may lead to a fall shift of focus from the core business. In 2017, the company acquired learning guidance platform Vidyartha to boost its personalized learning products. In the same year, it took over education platforms- TutorVista and Edurite- from Pearson to expand its footprints in international space. In January 2019, Byju's acquired a US-based Osmo, a maker of educational games for children aged 3–8 years for $120 million. In February 2021, Byju’s acquired Mumbai-based doubt clearing platform Scholr. During the crisis of Covid-19, Byju's engulfing journey did not halt. It bought the coding application platform of WhiteHat Junior for a whopping $300 million through an all cash deal. In next month, that is September 2020, Byju signed a deal to acquire brick and mortar test preparation leader Aakash Educational Services for an humongous amount of $1 billion. In the same month, it seized the rights of ed-tech startup LabinApp for an undisclosed amount. <strong>Achievements</strong> Covid-19 pandemic emerged as a blessing in disguise for the unicorn enterprise. When the world was suffering from the wrath of health crises and school, colleges were shut during the lockdown, it became the world's most valued edtech startup in June 2020. Its valuation surpassed $10 billion. In 2017, Byju's named bollywood magnate Shah Rukh Khan as his brand ambassador, who has been associated so far. In March 2017, a case study on BYJU's was featured in Harvard Business School's curriculum. It is one of the biggest achievements for any company from a non-monetary perspective. It paved a way for the global market for the company. In 2019, Byju became the official title sponsor of the Indian Cricket Team jersey, replacing Chinese mobile brand Oppo. In November 2020, Byju's became the title sponsor of the Indian Super League club Kerala Blasters FC, co-owned by master blaster Sachin Tendulkar. It replaced Muthoot Group. <strong>Competitors</strong> In a way, Byju enjoyed monopoly before the COVID-19 pandemic. However, many similar major players entered the market when the government imposed lockdowns and put restrictions on attending school and colleges. This meant that students had to now learn everything from their homes, which paved the way for other edtech. Various new entrants like Vedantu, Unacademy, Toppr, Meritnation, etc have tapped the markets, but they are not much close to Byju's. The focus of the learning App was to provide online coaching to fourth to 12th class students. Byju tried to make it effective as well as interesting. This has been the moat of the company so far. His learning App is replicating and forgetting soon after the exam. It is about breaking the vicious cycle of memorising. The app-based model has several advantages. The app is getting more popular in the smaller cities and towns, where the education infrastructure is shattered and scanty. <strong>Challenges for Byju's</strong> As said by Byju Raveendran, the founder, on various media platforms, converting the students to paid subscribers after the free trial ends is a major challenge for BYJU's. The company is also working towards expanding to other English speaking countries, and finding suitable partners to assist with this expansion is the second challenge.</div>
<p><strong>Dividend Announcement</strong> <br /><br />Sterlite Power Transmission has informed that the Board of Directors of the Company at their meeting held on 10<sup>th</sup> May 2021, approved the payment of Interim Dividend of Rs. 5.30/- per equity share having nominal value of Rs. 2/- each for the financial year 2020-2021. The said Interim Dividend will be payable to those members whose names appear in the Register of Members/ list of Beneficial Owners as provided by the Depositories i.e National Securities Depository Limited (NSDL) and Central Depository Services (India) Ltd (CDSL) as on Record date i.e. Thursday, May 20, 2021.</p> <!--more--> <p><strong>Tax Provisions</strong> <br /><br />Starting from 1st April, 2020 onwards, the Company will deduct TDS as per applicable provisions and TDS rates, while paying dividend. <br /><br /><strong>For Residents</strong> <br /><br />In case of resident shareholders, the rate currently prescribed for TDS is 7.5% for those resident shareholders with valid Permanent Account Number (PAN), 20% for resident shareholders without PAN or invalid PAN. Hence, the shareholders are advised to update their PAN with the Depository Participant, if shares are held in Demat form, and with the Registrar and Share Transfer Agent of the Company, if shares held in Physical form. <br /><br /><strong>For Foreign Residents</strong> <br /><br />Tax shall be deducted at source @20% (plus applicable surcharge and cess) on dividend paid to Foreign Institutional Investors ("FIIs") and Foreign Portfolio Investors ("FPIs") in view of specific provision under section 196D of Act.</p>
Motilal Oswal Home Finance is a home financing company of Motilal Oswal Group. The company primarily gives average loans of 8.5 lac to the borrowers. Till Fy20-21, 80% of the loan book has been disbursed in the state of MH and Gujarat. Out of that , 45% of the total loan is disbursed to <strong>Self employed</strong> and 55% loan to <strong>Salaried class</strong>. Total loan book as on 31.03.2021, stands at ~3500 Crores.<!--more--> <strong>NBFC and Covid-19 Crisis</strong> The company which was started few years back has been facing issues since 2019, first due to NBFC crisis and then Covid-19 in 2020. Last year, with the implementation of lockdown, disbursements were halted, collection moderated and asset quality started worsening. However, the second half of FY21 witnessed improved performance by industry players in terms of disbursement and collection and the industry was expected to fully recover and registered a healthy growth in FY22. <strong>Covid-19 Second Wave</strong> As economy was about to come back at the pre-COVID level, the second wave has made situation more grim than previously. The nation wide lockdown was not done, however, most of the states are under lockdown which has severely affected the livelihood of lower and middle income people. This will again put lot of pressure on companies such as Motilal Oswal Home Finance to increase sales and get loan's EMIs on time. <strong>Management Analysis of FY20-21 </strong> 1. The culture of Work From Home, culture implemented by most of the corporates, there is need for bigger homes and also sense of owning house has increased resulting in demand for housing. Most of the states have also offered concession on stamp duty which has made housing more affordable. As result of these developments coupled with discounts offered by builders, there is record high home buying. 2. During the year Motilal Oswal Home Finance registered a robust PBT growth of 48% YoY and PAT growth of 73% YoY (excl. one me tax impact). 3. Disbursements remained muted for the first half of FY21, owing to lockdown, but Motilal Oswal Home Finance gradually picked up and disbursement stood at Rs.273 cr, which was up 42% YoY. 4. The loan book stood at ~ Rs.3,512 crores across 47,665 families as of March 2021. 5. Currently, Motial Oswal Home Finance has in-house collection team comprises of 500+ officers. They have strengthened legal unit to pursue legal cases aggressively such as SARFAESI, section 138 and arbitration cases. <strong>Business Performance of FY20-21 </strong> 1. MOHFL has disbursed Rs. 273 crores during FY21. 2. Average loan size of Rs. 8.6 lakhs. 3. The average tenure of the loan given is 15 years with loan limit of Rs.25 lakhs 4. Geographical reach across 9 states with 104 branches. Collection team of 500+ members along with robust legal team Catering to 47,660+ families 5. Average LTV of 59% as on 31st March, 2021 and Total staff count of 1,316 employees. <strong>Financial Performance of FY20-21 </strong> 1. Loan book stands at Rs.3,512 crores as on 31st March, 2021 2. Net Worth of r 910 crores as on 31st March, 2021 3. Profit stood at r 40 crores during FY21 4. NIM – 6.1%, Spread – 5.1% 5. GNPA – 2.2% and NNPA – 1.5% 6. Provision coverage – 92% 7. Net Debt to Equity – 2.8x 8. Cost to Income – 33% 9. Capital adequacy – 50% <strong>Valuation of Motilal Oswal Home Finance</strong> Currently, the share of Motilal Oswal Home Finance is available at Rs.14 per share in the unlisted market. The Book value as on 31.03.2021 is 1.65, so P/B is 8.48x ( looks highly overvalued).
Last one year has been the year of entrepreneurs and start ups which created a battlefield for new age business ruled and run via smartphone and mobile, targeting the urban youth and millennials. Such startups have written ample stories with young professionals visionaries paving their paths to the hard earned success. Discarding the classic David versus goliath wars, these new age businesses strive hard on the instincts of stability, survival and share in the market. One of the new startups to emerge is Urban Ladder, which is not an exception, allowing people to buy furniture online. Cofounded in July 2012 by Ashish Goel and Rajiv Srivatsa, Urban Ladder is a accreted marketplace for furniture that is backed with funding more than $75 million from investors like Sequoia Capital, Steadview Capital, SAIF partners, Ratan tata etc. Growing massively over the last couple of years.<!--more--> Urban ladder has a popular name in the startup space over the last one decade. Much like other startups, the Bengaluru headquartered entity delivers to more than 100 towns and cities across India. Urban Ladder has dabbled with the idea of going app-only but still holds on strong to the website. It is consistently adding new locations to its delivery map, which is helping the company to expand its business operations and increase revenue. Urban Ladder focuses on stylish and modernistic furniture that comes with the promise of superior quality. However, geographical diversification demands more customized design, material, and quality as the buyers from different states demand for vivid taste and preferences based on social, cultural, religious, weather and other factors. For instance, North Indian states preferred solid wood and carved furniture. In contrast, the south Indian states preferred lightweight and modular furniture. Wester Indian states demand for big sized furniture due to bigger houses, whereas eastern Indian states have a knack for classical carves. Urban Ladder invested heavily in data analytics to understand each geographical preference. They started customized and categorizing products for a specific geography. With over 4,000 products and 35 categories, by the end of 2014, they expanded to 12 cities.By the end of 2015, UL planned to expand its presence to about three dozen cities. To ensure customers didn’t receive damaged goods, special packaging teams were set up in all their 10 warehouses and each product was packed with at least five layers of foam sheets. By controlling the supply chains, they ensured that they reduced the damages to nearly 0.3%, which were previously as high as 25%. <strong>Funding Rounds</strong> To tackle and take on the stiff competition they seek strong financial backing, which they managed after roping in SAIF Partners and Kalaari Capital in November 2013 for a massive $5 million investment. This paved way to innovations and they increased their reach to Chennai and Pune as well. Their revenue also increased and topped the $1 million mark. In July 2014, they raised another whooping USD $21 Million from Steadview Capital (along with existing investors SAIF Partners and Kalaari Capital) as they were reaching the verge to break-even and staved for hefty capital to sustain the humongous growth. Tata Group chairman, Ratan Tata also invested an undisclosed amount in Urban Ladder in November 2014. This was Tata group’s third investment in e-commerce after Snapdeal and Bluestone. <strong>Acquisitions</strong> Urban Ladder had acquired Gurgaon-based furniture and home décor marketplace 'BuynBrag' in 2014. The acquisition was aimed at strengthening the home decor business of Urban Ladder. The acquisition was done privately and the details were not disclosed publicly. BuynBrag had also started operations in 2012. Urban Ladder is continually creating and launching new collections like the Malabar, the Eleanor & Louise, and the Fujiwara range. Urban Ladder launched design consultation as a service in 2016. The furniture exchange offer is provided by Urban Ladder’s partners Zefo and Quikr. <strong>Competitors in the market</strong> While Urban Ladder was planning expansion, it was not the only player in the online furniture market. By October 2016, Urban Ladder decided to take a risky bet. Going offline. Faced with mounting losses, online furniture company Urban Ladder has decided to foray into offline retail as a separate vertical. The company introduced its first shop-in-shop store in Bengaluru within sofa retailer Balini’s store. Doing so, they now came in direct competition with all the big offline & online players such as Home Town, Lifestyle Home Centre, Godrej Interio, Fab India, Style Spa, DLF Pure, Evok (Hindware), Pepper Fry, Fab Furnish and Zensaar. That’s why 'Experience Centre' became a much sought after demand which led to Urban Ladders pivot from a pure-play e-commerce platform to an omnichannel furniture brand. To fuel this, Urban Ladder even explored debt funding and raised around $3 million in venture debt funding as it got ready for the capital intensive world of furniture retailing. <strong>Dilemma of Tough Times</strong> Startups get funded for potential and exponential growth. As Urban delivered average growth in financial year 2017-18 it became difficult for them to raise funds from external investors and had to raise funds through existing investors. By late 2018, Urban Ladder had to let go of around 25% of its employees to manage cost pressure and low bank balance. By Sep 2019, Flipkart was capturing 41% of the online furniture market. The market itself was leap frogging with a CAGR of 80-85% with expectation that it would reach $700 million by 2022 In Apr 2019, its President and COO resigned. By June 2019, it fired 40% of its 1,1100 employee base in an effort to become lean and profitable and closed several verticals. The delay in paying vendors and the long wait also pushed vendors to ask for 100% upfront from the company <strong>Reliance climbed up to the 'Ladder'</strong> In November 2020, Reliance Retail Ventures, Retail arm of Asia's richest person Mukesh Ambani, acquired a 96% stake for over Rs 182 crore. The deal was concluded at 42% of the company's Topline in FY 2019-20. The company has the option of acquiring the remaining stake. It has proposed to make a further investment of up to Rs 75 crore in next few years. In the pandemic hit year of 2020, Reliance Retail Ventures, the subsidiary of Reliance Industries has completed its fund raising exercise and announced that it has raised Rs 47,265 crore ($6.4 Billion) for a 10.09% stake. The war chest was built by the company after it bagged deals with some the leading tech giants and private equity funds. Ambani led Reliance group has waged a retail war and thumping taking on players such as Jeff Bezos-led Amazon, Walmart-owned Flipkart, Swedish home furnishing major Ikea, and smaller rival Pepperfry in the battle for India’s $32 billion worth furniture market.
Mukesh Ambani's Retail arm, Reliance Retail has been ranked as the second fastest growing retailer in the world during the year 2021. The rankings have been released by Deloitte under the ranking of global retail power houses. However, the retail firm of Reliance Industries (RIL) topped the list in the previous year. It has been ranked 53rd in the list of Global Powers of Retailing, improvement from 56th earlier, according to the Deloitte report. Reliance Retail is the only Indian entry in the global list of 250 retailers. It features consecutively for the 4th time in the list of Global Powers of Retailing and World's Fastest Retailers. E-commerce, it said, is a second growth driver, through both digital commerce (B2C) and B2B.<!--more--> "The company is partnering with WhatsApp to further accelerate Reliance Retail's digital commerce business on the JioMart platform using WhatsApp and to support small businesses on WhatsApp," Deoitte said. Interestingly, Amabi's retail venture has outshined the peers with its spectacular results in the quarter ended on March 31, 2021. During the pandemic hit year, Reliance Retail drove well on the path of revenue and profits. The retail firm reported a 45% jump on year-on-year (YoY) basis in its net profit at Rs 2,247 crore in Q4FY21. The company's revenue surged 23.2% to Rs 47,064 crore for the period, compared to Rs 38,211 crore, an year ago. On a quarter-on-quarter (QoQ) basis, the company’s revenue gained 24.4% from Rs 37,845 crore. Revenue for the FY 2020-21 stood at Rs 1,57,629 crore, lower by 3.3% compared to Rs 1,62,936 crore during the previous year. However, net profit marginally increased 0.6% to Rs 5,481 crore for year year ended on March 31, 2021. The retail firm clock EBITDA of Rs 9,789 crore during the period under review, 1.1% up from the year ago. The company added 1,456 new stores and generated over 65,000 jobs during the distressed and challenging year. Out of these, 826 were introduced in the latest quarter. Total store count now stands at 12,711 stores, covering 33.8 million sq ft. at the end of the year. According to the current share price, the market cap of Reliance Retail has crossed the $100 billion mark. It is the fourth domestic firm to achieve this feat. The company is valued at Rs 7.50 lakh crore, surpassing blue chips like Hindustan Unilever and HDFC Bank. US giant Walmart Inc has retained its place as the leader of the charts. Jeff Bezos' e-commerce conglomerate Amazon has improved its positioning to second. Costco Wholesale Corporation of US slipped a rank to be placed third followed by Schwarz Group of Germany. Among the top-10, US retailers took away 70 per cent share. UK's sole entry is Tesco PLC, featuring at 10th place. Other US retailers in the top 10 include The Kroger (5th), Walgreens Boots Alliance (6th) and CVS Health Corp( 9th). German retailer Aldi Einkauf and Aldi International Services are placed at 8th position. The shares of Reliance Retail are roaring aloud in the unlisted market, delivering over 4x return in the last one year. However, the counter has much potential for upside as the firm is still growing. The growth opportunities fares well for RIL, who is keen on shifting its focus to consumer oriented business from the B2B segment. Asia's Richest person Mukesh Ambani is looking to its retail arm in the next couple of years. He has turned the company net debt free, much prior than pledged. RIL holds over 99.95 per cent stake in Reliance Retail via its fully owned subsidiary Reliance Retail Ventures.
<strong>Decoding the PLI Scheme </strong> About a gross of companies have applied for a production linked incentive (PLI) scheme for IT hardware, including Dell, Rising Stars Hi-Tech (Foxconn) and Lava. Majority of the hardware manufacturing firms have applied under category IT hardware companies. According to the ministry of Information and Technology, these companies are expected to expand their manufacturing operations in a significant manner and grow into domestic leaders in IT Hardware production. The target IT hardware segments under the proposed scheme include laptops, tablets, all-in-one personal computers (PCs) and servers. <!--more--> The government of India will reward these entities by incentivising them. The Finance Minister Nirmala Sithraman announced the PLI scheme for the companies in the annual budget on February 1, 2021 and the same was notified on March 3, 2021 for IT hardware. The scheme extends an incentive of 4 per cent to 2 per cent or 1 per cent on net incremental sales (over base year of FY 2019-20) of goods under target segments that are manufactured in India to eligible companies. The period under review for the scheme shall pertain to a period of four years, that is FY 2021-22 to FY 2024-25. The scheme proposes production linked incentives to boost domestic manufacturing and attract large investments in the value chain of these IT Hardware products. The aim is to ensure India as a manufacturing hub for IT and hardware solutions. Ravi Shankar Prasad, Union Minister for Electronics and IT said that the PLI scheme for IT Hardware has been a huge success in terms of the applications received from global as well as domestic companies engaged in manufacturing electronics hardware products. Over the next four years, the scheme is expected to lead to total production of about Rs 1.60 lakh crore, out of which production worth Rs 1.35 lakh crore is proposed by IT hardware entities, whereas domestic manufactures are likely to contribute about Rs 25,000 crore of production. It is anticipated that the scheme will rope in about Rs 2,500 crore of additional investment in electronics manufacturing and will generate over one lakh direct and indirect employment opportunities in next four years. <div class="yj6qo ajU"></div>
Domestic Phone maker Lava International is preparing to raise funds via rights issue as it seeks to capitalize on the incentives offered by the government to boost local manufacturing of electronics. The 15-day issue opens on 4th of May, 2021 and can be subscribed till 18th day of the same month. "The Company board of directors in their meeting held on April 30, 2021 have accorded their approval to the issue and allotment of equity shares by way of rights issues to the existing equity shareholders of the company as on April 23, 2021, the record dates, pursuant to 62(1)(a) and other applicable provisions of the Companies Act 2013, if any, read with the rules framed thereunder.", the company wrote to its equity shareholders.<!--more--> The additional funds which shall be raised by the means of rights issue, inter-alia, shall be utilized for business development, meeting its working capital requirements and for general corporate purposes. However, the company has mentioned that the fund requirements and deployment described is based on internal management estimates and has been appraised by any bank, financial institution or any other external agency. These are based on the current circumstances of the company. The company is issuing shares at a price of Rs 533 apiece under its rights issue. The company is entitled for equity shares of face value of Rs 10 each at a premium of Rs 523 per share to shareholders, as on the record date. The company is planning to issue 1.15 per cent of total outstanding equity shares 12.48 crore. The company is likely to issue 14.35 lakh equity shares. According to this mathematics, The company has offered one equity share for every 87 shares held. At the current price quoted in the right issue, the company is valued at Rs 6,650 crore, just 1.27 times its revenue. The phone maker is in the list of homegrown firms, racing to hit primarily with their initial public offering (IPO). Lava has plans to raise around Rs 1,400 crore via primary route. However, the clearity is much awaited. The company’s plans signal the comeback of Indian phone manufacturing, years after domestic producers were edged out of India’s massive smartphone market by Chinese rivals offering cheaper phones with better specs. Smartphone shipments in India hit a record 50 million in the September quarter, according to a report by market research firm Canalys. The government has been working actively on making India an alternative manufacturing hub to China and has announced production-linked incentives and other benefits. Lava is trying to reap benefits from the opportunity created by the PLI scheme for mobile manufacturing in India, which is ruled by Chinese and Korean players. Lava now eyeing a market share of 5 per cent in the smartphone segment. Phone makers are expected to benefit from the government’s new production-linked incentive (PLI) scheme, which offers 4-6% incentive for mobile manufacturers. Lava is one of five domestic manufacturers that have won approvals for the scheme. The company reported Rs 5,264 crore revenue for the year ended on March 31, 2020, compared with Rs 5,108 crore a year ago. The company managed a net profit of Rs 107 crore on that revenue, compared to Rs 73 crore in the previous year. Noida headquartered Lava International is eyeing expansion with exports in focus. It has submitted proposals to make low-cost phones for telcos in the US. The company has overseas operations in 11 countries including Thailand, Nepal, Bangladesh, Sri Lanka, Indonesia, Mexico and some West Asian countries. Lava’s comeback strategy is to replicate the success of Chinese smartphone makers by offering phones with top-notch specifications at lower price points. But the smartphone market share of Lava was 6 per cent in 2015, according to Counterpoint Research, which dwindled to below 1 per cent in 2020.
Reliance Retail, a retail arm of Mukesh Ambani's Reliance Industries (RIL), has outshined the peers with its spectacular results in the quarter ended on March 31, 2021. Reliance Retail continues to be the driver of revenue and profits for Mukesh Ambani. The retail firm, on 30 April reported a 45% jump on year-on-year (YoY) basis in its net profit at Rs 2,247 crore in Q4FY21. The company's revenue surged 23.2% to Rs 47,064 crore for the period, compared to Rs 38,211 crore, an year ago. On a quarter-on-quarter (QoQ) basis, the company’s revenue gained 24.4% from Rs 37,845 crore.<!--more--> Revenue for the FY 2020-21 stood at Rs 1,57,629 crore, lower by 3.3% compared to Rs 1,62,936 crore during the previous year. However, net profit marginally increased 0.6% to Rs 5,481 crore for year year ended on March 31, 2021. The retail firm clock EBITDA of Rs 9,789 crore during the period under review, 1.1% up from the year ago. Despite the Covid-19 pandemic, the company added 1,456 new stores and generated over 65,000 jobs during the distressed and challenging year. Out of these, 826 were introduced in the latest quarter. total store count now stands at 12,711 stores, covering 33.8 million sq ft. at the end of the year. "Reliance Retail delivers a resilient performance against the backdrop of an unprecedented and challenging operating environment, arising from the COVID pandemic situation that emerged at the start of the year,” the company said in a release as it declared its results." Reliance’s online bets – JioMart and Ajio.com – continue to be the drivers of growth. As per Reliance, its grocery vertical hit all-time high revenues with a double digit quarterly growth. "3x growth in JioMart Kirana partnerships over last quarter has extended to 10 new cities and taking the count to 33 cities," said the company. Ajio.com – the company’s fashion and lifestyle e-commerce bet – has seen four times growth in revenue over the last one year. Meanwhile, Reliance Trends, the company’s fashion and lifestyle stores, now contributes over 55% to the retail arm’s total revenue. Last year, Reliance Retail Venture, the holding company for Reliance Retail, raised about Rs 47,265 crore from global private equity funds by selling 10.09% stake. Unlisted shares of Reliance Retail have more than trebled since January last year. It still has more upside potential. According to the current share price, the market cap of Reliance Retail has crossed the $100 billion mark. It is the fourth domestic firm to achieve this feat. The company is valued at Rs 7.50 lakh crore, surpassing blue chips like Hindustan Unilever and HDFC Bank. <div class="yj6qo"></div> <div class="adL"></div>
Signify Innovations India, formerly known as Philips Lighting India, said its brand EcoLink is expected to clock five-fold growth and will be a Rs 500-crore brand by 2023, according to a top company official. Signify is expanding beyond lighting and switches and is entering into the Fans category through EcoLink brand and has plans to add more products to make it a home electrical brand for value-conscious buyers. Besides, Signify Innovations has also made India a development hub for the EcoLink brand, which was launched in 2019, to cater the value-conscious segment.<!--more--> "Our ambition is to make EcoLink a Rs 500 crore brand in three years till 2023," Signify Innovations India Vice Chairman and Managing Director Sumit Joshi told PTI. The brand has crossed the business of Rs 100 crore in the first year of operation, he added. “Now we are taking the second step and entering into the market, which is quite a significant size market. We have invested quite a bit, ensuring that our manufacturing and products are extremely good. Now it is time, when we will also invest in our front end, where we will invest in creating EcoLink as a brand. We are investing in the go-to market,” Joshi said. Presently, India is the biggest market for EcoLink, which has a current portfolio featuring more than 300 lighting products. Besides, the brand is also present in markets such as Indonesia, the Middle East and a few parts of Europe. “But it is also unique that India is a development hub for the brand as well for all the categories, in which we are getting into,” Joshi added. After fans, Signify Innovations has plans to expand its offering and foray into several new segments step by step and create disruption with affordable prices with quality. The company is leveraging its R&D strength and innovation to bring new products. “We have decided Fan is a great opportunity to enter into. It''s a big Rs 11,000 crore plus category,” he said. Signify Innovations would leverage its existing sales and distribution network for the EcoLink branded fans. “We have a great relationship and most distributed brand in the lighting. We have a leverage point there,” Joshi said. The newly launched range of EcoLink fans features more than 36 products in the ceiling fans category. According to the Indian Fan Manufacturers Association data, fans which are essential items for the masses and have one of the highest levels of penetration of 74 per cent of households across India. Companies such as Orient Electric, Havells India, Crompton Greaves, Bajaj Electricals, Usha International, Polar, Luminous operate in this segment. PTI KRH DRR DRR
Tamilnad Mercantile Bank which is predominantly having branches in South India, has come up with excellent FY21 numbers. The highlights of the business is mentioned below. <ol> <li>Deposit has increased from 36825 Crores to 40970 Crores. <span style="font-size: 14pt;"><strong>[Growth of 11.2%]</strong></span></li> <li>Advances has increased from 27715 Crores to 31069 Crore. <span style="font-size: 14pt;"><strong>[Growth of 12.10%]</strong></span></li> <li>Net-Profit of ~600 Crores in FY21 as compared to ~400 Crores last year. <span style="font-size: 14pt;"><strong>[Growth of 50%]</strong></span></li> <li>Gross NPA stands at 3.44% in FY21 as compared to 3.62% last year.</li> </ol> <!--more--> TMB bank has shown this exceptional performance on the back of lower provisioning, increase in advances and revision of interest rates. As per management commentary, for a next year TMB would lay thrust on consistent CASA growth, credit growth with specific thrust on retail lending and introduce call centre operations, and among others. <strong>Below is the graphical representation of TMB last 5 year growth</strong> <img class="alignnone wp-image-15753" src="https://unlistedzone.com/storage/knowledge-logo/15.png" alt="" width="414" height="311" /> <img class="alignnone wp-image-15754" src="https://unlistedzone.com/storage/knowledge-logo/16.png" alt="" width="414" height="310" /> <img class="alignnone wp-image-15755" src="https://unlistedzone.com/storage/knowledge-logo/17.png" alt="" width="413" height="310" /> <img class="alignnone wp-image-15756" src="https://unlistedzone.com/storage/knowledge-logo/18.png" alt="" width="411" height="308" /> <strong>Valuation of TMB bank</strong> As on 31.03.2021, the book value of TMB is 321 per share. TMB share is available in the market at Rs.520 per share. So, P/B 1.61x, which is looks quite a reasonable valuation. <strong>IPO Plans</strong> As per management, TMB bank is soon filling for an IPO to raise 1000-1300 Crores from the market. The IPO would be a mix of fresh shares and OFS.
Indicative prices, company research and your enquiries — in your pocket. Get price notes on the names you follow and reach our team from anywhere.
