Roundup and Stock Pick of the Week: June 15 - June 27 2016 Research reports roundup this week! Eight company stocks saw BUY reports. One stock came in as HOLD, and two as ACCUMULATE. Pick of the week: KNR Constructions Limited - KNRCON, which has received two price upgrades over the last six months from Phillip Capital and Karvy. Date Stock Target Upside Type CMP Broker Upgrades/downgrades - last 6 months 2016-06-14 Minda Industries Limited - MINDAIND 1355 16.99 BUY 1158.2 Karvy 4 upgrades till date 2016-06-14 Finolex Cables Limited - FINCABLES 412 12.11 BUY 367.5 Karvy 1 upgrade till date 2016-06-15 Atul Auto Limited - ATULAUTO 505 3.75 HOLD 486.75 ICICI Securities 2 upgrades, 2 downgrades till date 2016-06-17 HCL Technologies Limited - HCLTECH 890 20.04 ACCUM 741.45 Prabhudas Lilladhar 6 downgrades till date 2016-06-17 Sun Pharmaceuticals Industri.. - SUNPHARMA 873 14.94 ACCUM 759.50 Prabhudas Lilladhar 3 downgrades till date 2016-06-20 Simplex Infrastructures Limi.. - SIMPLEXINF 295 8.86 BUY 271.00 Karvy 3 downgrades till date 2016-06-20 KNR Constructions Limited - KNRCON 740 36.78 BUY 541.00 Karvy 2 upgrades till date 2016-06-20 MindTree Limited - MINDTREE 775 17.72 BUY 658.35 HDFC Securities 2 upgrades, 1 downgrade till date 2016-06-21 Indo Count Industries Limited - ICIL 1380 46.81 BUY 940.00 Motilal Oswal One downgrade till date 2016-06-22 Triveni Turbine Limited - TRITURBINE 128 9.87 BUY 116.50 HDFC Securities 2016-06-23 Indraprastha Gas Limited - IGL 650 6.98 BUY 607.60 Phillip Capital 3 upgrades, 1 downgrade till date
Brexit upheaval continues, India gets MTCR membership, Paytm-Alibaba to source Chinese products to India Worry for the world's central banks after Brexit. The world's central banks met in Switzerland over the weekend to discuss actions to calm markets, but say there's not much they can do. NYT Paytm and Alibaba are working together to source products from China for Indian sellers, a move likely to bring down online prices for consumers. ET At the same time, commentators are calling for an Indian boycott of Chinese goods after China blocks India's NSG membership. Scroll India to become full MTCR member today, giving the country access to high-end missile technology. IE Volatility likely to continue in Indian markets over the short term, experts say. BS Cartoon of the day: Rio and Zika. USN
Business news today, in brief BREXIT is dominating world headlines, with Britain voting to leave the EU. This is the first nation to leave the Union. The British pound has fallen to a 31-year low against the dollar, and Sensex falls 1000 points with the news. NYT India's membership to the Nuclear Suppliers Group (NSG) has stalled despite 47 of 48 members supporting the country's bid. China remains against, the lone opponent to India's bid, and discussions start again tomorrow. New smartphone players like Chinese company OnePlus are grabbing their own pieces of market share, and now claim 6% of the India market. CyberMedia Uber is offering upfront fares in India and US starting today, which will tell riders ahead of time how much they will have to pay on the trip. ET Subramanian Swamy continues as key chaos-maker, saying he does not have to listen to Jaitley - 'I speak to PM Modi' IE The Rs 1,000-crore initial public offering (IPO) of shares of Mahanagar Gas Limited (MGL) has been subscribed over 65 times, attracting over a billion bids worth more than Rs. 47,000 crore BS. The growth opportunity India has in gas distribution has been a big draw for investors into MGL.
Bangalore sees sharp differences within the city - some spaces are declining, while in others real estate prices are rising fast Bangalore is by no means a uniform city, and an analysis of real estate prices in each zone reveals that some neighborhoods are seeing higher demand due to better infrastructure, metro and road connectivity, and schools and markets. Others however are on a sharp decline with prices falling QoQ by double digits. The oldest neighborhoods in Bangalore Central however, remain resistant to any fall. Most expensive neighborhoods: The mainstays feature here. Vasanth Nagar in Bangalore North (over Rs 12,000/sq feet), EPIP Zone in Bangalore East (over Rs 7000/sq feet), MG Road and Cunninghum Road in Central (over Rs 12,000/sq feet), and Thyagraj Nagar and Binny Pete in South and West (over Rs 7000/sq feet) cost the highest in each city zone. Fastest growing: These neighborhoods are seeing the biggest spikes in prices over the last quarter, as these areas get coveted building projects and better infrastructure services. Nagavara in Bangalore North (+13.8% quarter on quarter increase in sq foot prices), Varthur Road in East (+14.6%), Frazer Town in Central (+11.8%) Begur in South (+12.8%) are all seeing larger demand and rising prices. Biggest declines: Some Bangalore neighborhoods are on the downswing. Kadubeesanahalli in Bangalore East for example, is experiencing increased pollution from nearby projects and traffic jams that have limited mobility for residents, resulting in price declines per square feet of -12.7%. Other neighborhoods seeing prices fall include Virupakshapura in Bangalore North (-13% fall), Anjanapura in South (-12.7%) and Kengeri Satellite Town in West (-10%).
Unhappy sellers add to Flipkart's woes Only recently Amazon India and Flipkart were in an ongoing argument in the media about who is leading in the e-commerce space. SimilarWeb data for June however, summarizing desktop and mobile visits, show Amazon ahead among Indian players not just in customer visits but also in overall engagement: visitors to Amazon stay longer, visit more pages, and have a lower bounce rate. Flipkart's list of woes is growing, with sellers angry at higher commission fees being charged and tougher norms for returning products. The fight between sellers and Flipkart is escalating and #OnlineDharna trending on Twitter for good reason: based on available data, Amazon India offers its sellers a better deal compared to other players - sellers can on average get as much as 80% of their MRP in hand if they sell on Amazon. On Flipkart and Snapdeal, that number is close to 70% due to added fees they pay. Click to see the full infographic.
A look at the frontrunners As Raghuram Rajan exits, a number of names are doing the rounds for the next RBI Governor - included in the list are two Arvinds (Panagariya and Subramanian), both sympathetic to Modi government policy, Urjit Patel, Deputy Governor at the RBI, SBI Chief Arundhati Bhattacharya, anti-corruption champion Vinod Rai, and bureaucrat Sumit Bose, best known for his SEBI report on bringing more transparency and fairness for customers in the mutual fund sector. Arvind Panagariya is widely perceived to be the frontrunner, although officials in the government have remarked that they may favor a bureaucrat over an economist this time around. Arvind Panagariya has praised the Gujarat Model in a book he co-authored with Jagadish Bhagwati, and is in favor of lowering interest rates, which has been a sticking point between Raghuram Rajan and Finance Minister Arun Jaitley, with Rajan resisting the government's push to lower interest rates in the face of inflation. Vinod Rai is another strong contender - Rai became a symbol of anti-corruption efforts in India with his work on the 2G report and his active push for greater accountability in government. Arvind Subramanian and Urjit Patel, aged 57 and 52 years are the youngest candidates on the list. (Click on the infographic to see more).
Where are India's VC deals happening? Sectors with the largest number of VC deals - amount and number of deals. Source: Atlas
Manufacturers lie awake at night, worrying about market share The prices of smartphones in India are falling at a rapid rate, as new companies fight it out to capture market share. Since March, there has been a flood of cheaper models, as competition heats up in a country where less than 20% of Indians own a smartphone. Between April 7 and June 1 alone, six new phone models were released priced at Rs. 4,999. The Sansui C10 released in June, priced at Rs.1,700. Videocon has also put phones on the shelf priced less than Rs. 2,000. Check out the infographic for the full lowdown.
Few of the top engineering colleges have a base fee less than Rs 1 lakh a year As college admissions near, students who qualify for engineering in India must figure out payment options for the next four years. In a country where average per capita income is below 1 lakh a year, even government supported colleges have high annual fees. IIT Mumbai is the most expensive IIT, while PSGCT Coimbatore is the cheapest private college in the top 20 list. This base fee does not include the additional fee structure that adds living expenses, food, books, etc. This points to the urgency with which we need better loan solutions for students and families. Check out the infographic for the cost to study at the top 20 in India.
Buzz for Reliance Jio is helped by an extra zero. Conflicting reports by PTI and IANS has resulted in media and in one case the same news daily, The Economic Times issuing two very different numbers on total subscribers for Reliance Jio 4G. One ET article for instance claims that Reliance Jio has seven lakh subscribers pre-launch, while a later ET piece on the same day claims the pre-launch number is 70 lakh subscribers. The answer to the puzzle lies in the data consumed per user. Reliance Jio had stated that its pre-launch users had consumed a total of 13 million GB of data, at an average of 18.5 GB per user. That calculation works out if the subscriber base is seven lakh users. Jio had launched an invite only, free 4G data plan to their staff. Each of the company’s employees were allowed to invite ten people to free 4G plans through a unique invite code. Since the plans were free people had a data buffet, which has resulted in great numbers for Jio to publicize. Thanks to the number of free users Jio has got, news outlets are already speculating that Jio will overtake Bharti Airtel in subscribers before launch. But Jio 4G is expected to be priced at Rs. 0.5/MB of data, and the price impact of this tariff on current free users is below. Still, the entry of Jio is likely to shake up the market. Analysts have predicted a steep fall in data prices with Jio’s entry - expecting it to drop from Rs. 0.23 per MB to Rs. 0.1 per MB by the end of the year. Reliance’s own shareholder releases show that promoters in the company have increased their stake by approximately 2.5% over the last nine months, reflecting their optimism. Data consumption/month per user (under free pre-launch plan) Post-launch price user would pay per month (under expected Reliance Jio 4G tariff) Kashmir 3.48 GB Rs 1740 North East 2.52 GB Rs 1260 Rajasthan 2.44 GB Rs 1220 Gujarat 2.1 GB Rs 1055 Nationwide 1.89 GB Rs 945
