Infosys Ltd.    
21 Oct 2019, 01:55PM
767.85
-0.21%
'Ignore those two Madrasis': Infosys CEO embarrasses himself

Heading a company founded and based out of Bangalore, with a seven founder member team that were all South Indians, CEO Salil Parekh decided to embarrass himself by reportedly saying in response to Board Members raising concerns,'Those two Madrasis make silly points, ignore them'. 

It's not that easy to ignore. Once lauded as the most transparent listed Indian company, Infosys is now rocked by multiple whistleblower allegations in the past two years. An anonymous employee group, named as 'Ethical Employees', has filed a complaint to the board of Infosys Limited and the US Securities and Exchange Commission (SEC), accusing the domestic tech giant of indulging in 'unethical' practices to generate more profit and revenue, and pressuring employees to highlight only good news in deals and business. The group has  accused company Chief Executive Officer Salil Parekh of bypassing reviews and approvals to get bigger deals, and that "several billion dollars of deals have nil margin".The group claims they have voice recordings of the CEO and the CFO to prove the allegations in the complaint. 

Claims include that the company asked them not to "fully recognise costs like visa costs" to earn more profit. It added that when the auditor pointed it out, the issue was postponed by the company.

The letter also quotes Parekh making remarks against two board members, DN Prahlad and D Sundaram. The whistleblower group says the CEO had told them that "no one in the board understands these things, they are happy as long as the share price is up: "Those two Madrasis (Sundaram and Prahalad) and Diva make silly points, you just nod and ignore them".

Update 18:00: Infosys shares are sharply down pre-market on the NYSE after the whistleblower complaint. 

Infosys Ltd. has an average target of 802.08 from 16 brokers.
Reliance Industries Ltd.    
21 Oct 2019, 12:49PM
1416.35
1.42%
Reliance criticizes TRAI in fight over IUC charges

The battle over IUC (interconnect usage charge) has been brewing for for a couple of years now, with the telecom regulator TRAI caught in the middle between the various telecom players and the Cellular Operators Association of India. The IUC charge is a payment that one telecom player pays to another, when a call on their network ends on a different network. It costs money for the second player to manage the call, hence the charge the first player is required to pay. 

While IUC charges are typically not zero across the world (something the COAI has been pointing to since the beginning of this issue) Reliance Jio has been campaigning avidly to bring the IUC charge to zero, since this enables Jio to offer lifetime free calls. Airtel and Vodafone Idea have long opposed bringing IUC charges to zero. Now TRAI has reopened its earlier plan to bring IUC to zero by Jan 2020. And Reliance is not happy. 

Airtel and Vodafone Idea insist that bringing these charges to zero will make telecom infrastructure impossible to maintain. Rajan Mathews, the head of the COAI, says that Reliance's view is the 'minority view'. TRAI hasn't yet made up its mind, but Reliance has already started attacking the regulator aggressively in the press, calling its move 'anti poor' and against Modi's Digital India vision. 

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L&T Finance Holdings Ltd.    
21 Oct 2019, 12:30PM
85.40
-0.23%
L&T Finance Holdings, Oberoi Realty announce weak results

L&T Finance Holdings announced September quarter results showing a sharp decline in net profit YoY, which fell by over 68% even as revenue growth rose 11.2%. Operating profit grew by single digits at 8%, compared to double digit growth in previous quarters. Net profits fell following a one time adjustment due to the deferred tax assets (DTA) after cut in corporate tax.

Under the fresh reduced tax guidelines, businesses that have taken higher provisions and created Deferred Tax Assets (DTA) at 34.9% must revise the tax rate to 25.17%, leading to a one-time P&L (profit & loss) charge of 9.77%. The company expects the tax rate impact to be lower going forward for FY20. 

Real estate firm Oberoi Realty, whose share price was rising ahead of results, saw both revenue and net profit growth fall in its YoY September quarter numbers. Revenue growth fell 17% while net profit sunk 35.7% YoY. Other expenses jumped in the quarter to Rs. 1285.5 crore.  See full result analyzer.

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L&T Finance Holdings Ltd. is trading below it's 30 day SMA of 89.2
The Baseline    
21 Oct 2019, 10:19AM
Markets closed for elections, results will continue
Rakesh Jhunjhunwala    
18 Oct 2019
Rakesh Jhunjhunwala ups stake in Federal Bank, NCC, VIP Industries

Superstar investor Rakesh Jhunjhunwala has upped his stake in Federal Bank by 0.18%, raising his total stake to 3.11%.  He now holds over Rs. 511 crore worth of shares. He has also increased stake in NCC by 0.52%, increasing his total stake to 10.38%, bringing the stake to Rs. 329 crore. and VIP Industries. In VIP Industries he has raised his stake by 0.32%, to a total stake of 5.31% worth Rs. 348 crore. 

See his full portfolio.

Trendlyne Marketwatch    
18 Oct 2019
LIVE: Markets rise, BHEL jumps on stake sale rumors

Upbeat trading today. Nifty 50 closed at 11656.75 (70.4, 0.6%) , BSE Sensex closed at 39298.38 (246.3, 0.6%) while the broader Nifty 500 closed at 9476.10 (85.1, 0.9%). Market breadth is surging up. Of the 1652 stocks traded today, 1141 were in the positive territory and 415 were negative.

  • Markets closed higher for the sixth day in a row, marking the longest streak in seven months for the Sensex and Nifty. 
  • About 14.8 lakh shares of Lakshmi Vilas Bank changed hands in a block deal. Share price for the stock is sharply down. 
  • Share price of Bharat Heavy Electricals (BHEL) jumped today, gaining over 25% on reports that the government was looking to sell its stake in the company. 
  • Exceptional gains lifted TVS Motor Company's Q2 net profit numbers, driving share prices up.
  • Zee Entertainment is falling today after weak results. 
  • About 15.9 lakh shares of Reliance Power changed hands in a block deal.
  • Markets are volatile in morning trade. Nifty 50 was trading at 11578.70 (-7.7, -0.1%) , BSE Sensex was trading at 39169.90 (117.8, 0.3%) while the broader Nifty 500 was trading at 9399.60 (8.6, 0.1%)
Riding High:

Largecap and midcap gainers today include Bharat Heavy Electricals Ltd. (53.95, 20.96%), Indiabulls Housing Finance Ltd. (236.75, 19.60%) and PNB Housing Finance Ltd. (483.35, 17.67%).

Downers:

Largecap and midcap losers today include Mangalore Refinery And Petrochemicals Ltd. (48.70, -5.44%), Zee Entertainment Enterprises Ltd. (250.30, -5.35%) and 3M India Ltd. (21730.00, -5.03%).

Volume Shockers

60 stocks in BSE 500 are trading on high volumes today.

Top high volume gainers on BSE included Bharat Heavy Electricals Ltd. (53.95, 20.96%), Hindustan Copper Ltd. (38.75, 19.97%) and MMTC Ltd. (18.45, 18.27%).

Top high volume losers on BSE were Mangalore Refinery And Petrochemicals Ltd. (48.70, -5.44%), 3M India Ltd. (21730.00, -5.03%) and Oriental Bank of Commerce (49.50, -4.99%).

Lakshmi Vilas Bank Ltd. (19.00, -4.76%) was trading at 147.2 times of weekly average. Ratnamani Metals & Tubes Ltd. (920.00, -0.63%) and KPR Mill Ltd. (608.00, 7.71%) were trading with volumes 34.5 and 16.3 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

27 stocks made 52 week highs, while 7 stocks tanked below their 52 week lows.

Stocks touching their year highs included - Atul Ltd. (4194.10, -0.34%), Bajaj Finance Ltd. (4129.90, 0.56%) and Berger Paints (India) Ltd. (498.80, 2.53%).

Stocks making new 52 weeks lows included - Dhanuka Agritech Ltd. (291.95, -0.95%) and Jain Irrigation Systems Ltd. (11.15, -4.70%).

37 stocks climbed above their 200 day SMA including Birla Corporation Ltd. (589.55, 8.49%) and KPR Mill Ltd. (608.00, 7.71%). 7 stocks slipped below their 200 SMA including 3M India Ltd. (21730.00, -5.03%) and Sunteck Realty Ltd. (401.05, -3.54%).

The Baseline    
16 Oct 2019
What are Porinju, Kacholia, Mohnish Pabrai and others buying and selling?

by Ritmbarah Arora

The main aim behind investing - the big dream - is to have multibaggers in your portfolio, but everyone is not always successful. Some investors however, have had better luck and timing than others, and are closely followed for the large sizes of their portfolios, and their stock picks. The Superstar feature on Trendlyne analyzes the portfolios of Superstar investors who have large portfolio holdings in the stock market.  Let’s take a quick look in the September quarter changes of the portfolio of the Superstars so far (see related screener), as filings have started coming in:

  • Rakesh Jhunjhunwala: Rakesh Jhunjhunwala is an Indian investor and trader who manages the asset firm Rare Enterprises. He has been described as India’s Warren Buffett whose stocks are closely watched by the media. Rakesh Jhunjhunwala publicly holds 32 stocks with a net worth of over Rs 19,486.7 crore, as per the latest corporate shareholdings. Rakesh Jhunjhunwala has so far cut his stake in Titan Company, Ion Exchange (India), Firstsource Solutions and Lupin. He has upped his stake in Agro Tech Foods with a holding value of Rs 95.2 crore. 

 

  • Ashish Kacholia: Fondly called the ‘Big Whale’ by media, Ashish Kacholia started with Prime Securities and later joined Edelweiss before incorporating his own broking firm, Lucky Securities in 1995. He also co-founded Hungama Digital with Rakesh Jhunjhunwala in 1999 and started to build his own portfolio from 2003. He is widely known for his absence from the media cycles, avoiding journalists. Ashish Kacholia publicly holds 19 stocks with a net worth of over Rs 533.1 crore, as per the latest corporate shareholdings filed. After the last quarter results, he has put in Rs 10 crores with 2.01% holding share in Apollo Pipes which is his new investment. He has also invested Rs 1.4 crores in Beta Drugs amounting to 2.08% of holding shares. He has cut stake in V2 Retail and Hikal Ltd. while exiting Birlasoft, NIIT and GTPL Hathway. He has upped his investments in Majesco and DFM Foods

 

  • Mohnish Pabrai: Born on June 12, 1964, Mohnish Pabrai is the founder and Managing Director of the Pabrai Investment Funds and founder and CEO of Dhandho Funds. He founded Pabrai Investment Funds in 1999. He publicly holds 6 stocks with a net worth of over Rs 1,587.9 crore, as per the latest corporate shareholdings filed. Mohnish Pabrai has upped his investment in Indian Energy Exchange with a holding value of Rs 102.3 crore. Rest of the portfolio remains unchanged, awaiting more filings.

 

  • Dolly Khanna: Chennai based large investor Dolly Khanna, is known for best lesser-known stock picks that tends to go on to overperform in the stock market. Her portfolio is managed by her husband Rajiv Khanna. Dolly Khanna has been investing in the stock market since 1996. She publicly holds 5 stocks with a net worth of over Rs 159.4 crore, as per the latest corporate shareholdings filed. She has so far, cut her portfolio stake in NOCIL and Rain Industries while exiting Muthoot Capital Services

 

 

  • Porinju Veliyath: Born on June 6, 1962, Porinju Veliyath manages his own portfolio and the portfolio of investors in his fund management Equity Intelligence India Private Limited. He is also known as small cap czar in the investor community as he focuses more on small-cap stocks. Porinju Veliyath publicly holds 11 stocks with a net worth of over Rs 22.6 crore, as per the latest corporate shareholdings filed. In the latest purchase, he has invested Rs 2.2 crores in Archies Ltd with a holding of 3.55%. He holds 2.36% of Shalimar Paints, 1.91% of Eastern Treads, 1.33% of Kerala Ayurveda and 1.04% of BCL Industries.  
Reliance Capital Ltd.    
16 Oct 2019
13.45
4.67%
Reliance Capital blames CARE for inability to pay lenders

Reliance Capital has blamed CARE Ratings for inability to pay its lenders. The company said that the "completely biased, unwarranted and unjustified rating action on September 20, 2019" from CARE, where it downgraded RCap's full outstanding debt to default "CARE D" rating, has affected Reliance Capital's future payments.

According to Reliance Capital officials, blame for future non-payment lies with CARE Ratings because lenders panicked over the D rating and demanded early payments on loans. Reliance Capital says that the rating "initiated acceleration, etc. of various facilities by certain lenders and consequential demands for immediate payment of amounts that were otherwise due and payable in a phased manner over the next 8 years till March 2028". As a result, the company says, it is unable to meet payments for the amounts under the new timelines.

Institutional Investors have decreased their holdings by 9.46% of holdings in Sep 2019 qtr.
YES Bank Ltd.    
16 Oct 2019
51.40
8.44%
Promoter pledges soar, FII holdings fall at YES Bank

YES Bank, which has struggled with performance and asset quality in the past quarters, has seen a big shareholding shift in the September quarter, with FIIs selling a significant chunk of the bank's shares, and promoter pledges soaring. Promoter pledges have increased to 35.05% of their holdings, from 3.64% in June 2019. Number of FIIs holding YES Bank stock fell by 42, decreasing their holdings by 7.18% from 33.6% in June 2019. 

Promoter Rana Kapoor’s holding in the bank declined, and sales of shares in two family-owned entities, Yes Capital, (YCPL) and Morgan Credits (MCPL) meant that their combined stake fell to 0.8% from 6.29% in the June quarter. A lot changes in a year, clearly. Last September, Rana Kapoor had said "Diamonds are forever: My promoter shares of Yes Bank are invaluable to me."