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Wipro 640.75 (-0.94%)

Cipla Ltd and Dr. Lal Pathlabs Share Q2 Results

Cipla Ltd and Dr. Lal Pathlabs Share Q2 Results
by 5paisa Research Team 26/10/2021

On 26th October, two important companies in the healthcare space viz. Cipla and Dr. Lal Pathlabs announced their quarterly results. Here is a gist of the numbers.
 

Cipla Ltd - Q2 Results


Cipla Ltd reported 9.56% higher sales for the Sep-21 quarter at Rs.5,520 crore. Net Profits for the Sep-21 quarter was up 6.90% at Rs.711 crore. Cipla has received a huge demand notice from the NPPA for overcharging under the DPCO. While the total demand is for Rs.3,703 crore, the matter is currently under litigation in the courts.

 

Rs in Crore

Sep-21

Sep-20

YOY

Jun-21

QOQ

Total Income (Rs cr)

₹ 5,519.80

₹ 5,038.29

9.56%

₹ 5,504.35

0.28%

Net Profit (Rs cr)

₹ 711.36

₹ 665.43

6.90%

₹ 714.72

-0.47%

Diluted EPS (Rs)

₹ 8.80

₹ 8.24

 

₹ 8.85

 

Net Margins

12.89%

13.21%

 

12.98%

 


During the quarter, Cipla did manage its raw material costs fairly well despite the supply chain constraints. However, spike in other expenses led to pressure on the profit growth. Net margins at 12.89% was lower than 13.21% on a yoy basis. Overall, the results had nothing remarkable about them in the quarter.
 

Dr. Lal Pathlabs - Q2 PAT Results


Dr. Lal Pathlabs reported 15.4% growth in sales in the Sep-21 quarter at Rs.498 crore. Net profits for the Sep-21 quarter was up by a more subdued 11.37% at Rs95cr. The board of Dr. Lal Pathlabs has approved the first dividend of 60% or Rs.6 per share on par value of Rs.10. In the first half of the financial year, the company generated 81% higher net cash from operations at Rs.282 crore.

 

Rs in Crore

Sep-21

Sep-20

YOY

Jun-21

QOQ

Total Income (Rs cr)

₹ 498.40

₹ 431.90

15.40%

₹ 606.60

-17.84%

Net Profit (Rs cr)

₹ 95.00

₹ 85.30

11.37%

₹ 131.20

-27.59%

Diluted EPS (Rs)

₹ 11.45

₹ 10.31

 

₹ 15.84

 

Net Margins

19.06%

19.75%

 

21.63%

 


With a sharp fall in COVID related testing and other medical revenues, the revenues and profits fell on a sequential basis. The profits over Sep-20 quarter grew in a more measured way because the raw material costs spiked by 25% during this period. Net margins at 19.06% was slightly lower than 19.75% in the Sep-20 quarter. 

Also Read About:- Do You know About Indian Pharma Sector?

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SIP vs Mutual Fund: What's the Difference?

SIP vs Mutual Fund: What's the Difference?
by 5paisa Research Team 27/10/2021

Many investors see mutual fund investments as a simple and comfortable method to invest in equities. Mutual funds are managed and operated by professional specialists in the form of fund managers.

Before investing in stocks, they thoroughly study and analyze the businesses, their fundamentals, stock price movement patterns, and long-term prospects. The fund managers decide on the best investment choice based on the findings.

When it comes to their money being invested in the stock market, an investor does not have to be concerned beyond reason. Research staff and a fund management team support their investments.

Due to the diversification of the investments, the danger of market fluctuation is reduced. Reduced risk means that a portfolio's loss in one asset may be offset by a gain in another. Investing in stocks may be time-consuming and difficult for the uninitiated.

This is where fund managers step in to save the day; they make the right decision at the right moment. Therefore to clear misconceptions and get a better idea of the similarities and dissimilarities between mutual funds and SIP, we have discussed the differences between these investment approaches in this post. Let’s begin with the sip vs mutual fund debate!

 

What is a Mutual Fund?

You and thousands of other investors combine their money in a mutual fund, which then invests it in various securities like individual stocks, bonds, and other types of financial instruments. Investments are made in a range of assets by a fund house with the aim of meeting a certain objective while also managing risk. 

Units purchased by mutual fund investors may be swapped for other funds on the secondary market. It's possible to categorize mutual funds according to their goals, approach to debt and equity, sectors they invest in, and risk tolerance.

 

What is a Systematic Investment Plan?

The acronym SIP stands for Systematic Investment Plan. Investments may be made in a single sum or over time, such as investing a little money each month. Depending on the fund house and the program, SIP enables you to contribute as little as Rs 500 each month in mutual funds. Almost all mutual funds provide systematic investment plans (SIPs), although the minimum investment amount differs. SIPs.

 

Mutual Fund vs Systematic Investment Plan: What's the Difference?

1. Mode of investment

When investing via the Systematic Investment Plan, regular contributions are made to purchase mutual fund units (SIP). When you invest on a regular basis, it becomes second nature. Compounding power is enormous in SIP investments. 

To accumulate wealth over time, SIP is a method in which an investor makes disciplined investments on a regular basis. One of the most effective ways to reach your financial goals is via the use of a systematic investment plan (SIP). 

An investor in a mutual fund can choose to reinvest their profits or receive a return, depending on his or her investment objectives. Instead of taking a loss, an investor may benefit from compound interest by reinvesting in the same plan.

 

2. The ability to change course when necessary.

It is possible to invest small amounts on a weekly, fortnightly, or monthly schedule with SIP investments since they provide you more flexibility in terms of when you want to invest. As a result, SIP works best for those who are employed or have a regular source of income. 

Systematic investment plans (SIPs) may be used to invest in mutual funds without disrupting your existing spending patterns. If you have a lot of spare cash, putting it in a mutual fund may be a good idea.

 

3. Reduced Costs

Cost averaging is available to you if you invest in SIP. Buying more units when the market is down and fewer units when the market is high can reduce your total purchasing cost.

As a result, your average purchase cost will be lower. In contrast, if you invest in a lump amount, you'll pay a greater price since you won't receive the advantage of averaging over all of your purchases.

 

4. Market Volatility

Inexperienced investors, in particular, are often perplexed as to when the ideal moment is to join the market is When investing in a lump amount, there's always the concern of when to make the purchase, which puts you at risk during times of high volatility.

With a SIP, your investment is spread out over time, so only a portion of it will be subject to higher-than-normal market fluctuations.

Conclusion

SIPs provide versatility, reduced costs as a result of averaging, and a useful method to deal with volatility. It's just a better investment strategy.

If an investor is arguing between SIP and mutual funds, he or she should evaluate the ease with which they may invest their income and profits.

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What is the Significance of STP in Mutual Fund?

What is the Significance of STP in Mutual Fund?
by 5paisa Research Team 27/10/2021

Investing in exchange-traded funds (ETFs) and mutual funds using the Systematic Investment Plan (SIP) is a common method to comprehend a systematic transfer plan (STP) (SIP).

The use of systematic investment plans (SIPs) gives investors the discipline of investing a certain amount each month. SIPs are arguably the greatest method to deal with investment volatility because of rupee cost averaging and other advantages.

Investment returns on mutual funds may be projected with the use of a SIP calculator. A SIP Calculator can estimate the return on mutual funds and exchange-traded funds or ETFs. Instead, STP is a variation of SIP that enables clients to progressively move assets from one asset management firm to another.

 

It is difficult to set up a SIP if an individual just has a flat sum to invest. If anything, investors are stuck with putting their money in a mutual fund or an ETF and hoping for the best, which they won't get.

Furthermore, investing a large amount of money all at once in equities and debt funds may be very hazardous. Investors may move a predetermined amount routinely from one fund to another via an STP, which is provided by asset management firms.

This post discusses the intricacies of STP in mutual funds followed by its significance for investors.

What is a Systematic Transfer Plan?

STP is a feature that allows unitholders to transfer a selection of predetermined units from one scheme to another on a regular basis. Through seamless asset class switching, the STP service aids investors in rebalancing their investment portfolios.

The usage of these instruments may assist to minimize volatility and achieve financial objectives. Let's say an investor gets a one-time windfall from the sale of a piece of real estate.

Investing in a low-risk money market or liquid fund and then methodically transferring a set amount into an equity fund allows the investor to benefit from rupee cost averaging while generating somewhat better returns than bank deposits.

This is an option for investors. Regular transfers of funds into an equities fund allow investors to relax about the market's fluctuations. You may plan to deposit INR 25,000 a month into an equity fund so that over the following 20 months.

The investor takes advantage of the volatility and manages to decrease the cost of purchase, for example, in case the client earns INR 5,00,000 in a lump sum and invests that in a liquid fund.

They are ideal for investors who want to put a large amount of money to work in equities funds but are concerned about trying to time the market.

 

How does STP Benefit Investors?

1. An Opportunity to Earn Better Returns

STP usually results in more profits. It's because, with an STP, you'll put the lump amount into a debt fund instead of a liquid one. The return on liquid funds may vary from 7 to 9 per cent, which is much greater than the return on a savings account, which is just 4 per cent.

2. Getting Consistent Profit Returns

STP's returns are quite dependable. As long as money is sitting in your source fund (debt fund), you'll continue to accrue interest until you move all of it.

3. Taking Charge of Your Risks

Moving to a less hazardous asset class may be accomplished with the use of an STP. Let's suppose you started a 30-year SIP into an equities fund as part of your retirement savings strategy.

As you get closer to retirement, consider implementing a systematic withdrawal plan (STP) to protect your fund's value.

You tell the fund house to move a certain amount of money from an equity fund to a debt fund upon your instruction. By the time you retire, you'll have all of your money in a secure place.

4. Averaging of the Rupee Cost

Systematic Transfer Plans (STPs) purchase fewer units at higher NAV and more units at a lower price to average out investment costs. Every time your money is moved from one fund to another, the management of that fund buys more units.

As a result, you will benefit from rupee cost averaging, which lowers your investment's per-unit cost over time.

5. Re-establishing Portfolio Equilibrium

Your investment portfolio should include a healthy mix of debt and equity. Investments are moved from debt to equity funds or vice versa using an STP to rebalance the portfolio and achieve greater returns.

STP vs SIP: What Should you Choose?

Investing in a specific fund using STP is similar to setting up a systematic investment plan (SIP). However, if you have a large amount of money to invest, STP is the way to go.

This is due to the fact that under a systematic investment plan (SIP), your money would sit in your bank account, earning no income or earning just a meagre amount of interest, compared to a low-risk liquid fund or an ultra-short-term debt fund.

As a result, it's preferable to put the whole amount into a low-risk debt fund before scheduling an STP to one of your preferred equity funds.

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Sunil Singhania Portfolio

Sunil Singhania Portfolio
by 5paisa Research Team 27/10/2021

Sunil Singhania needs no introduction in stock market circles. As the CIO of Reliance Mutual Fund, Sunil worked closely with Madhu Kela to make Reliance Mutual Fund a formidable name in the mutual fund industry. Sunil Singhania currently runs the Abakkus Fund, but his moves are still tracked closely due to his in-depth understanding of mid-caps and small caps.

As of the close of September 2021, Sunil Singhania (Abakkus) held 27 stocks in the portfolio with a market value of Rs.2,715 crore as of 19th October. Here is a snapshot of his top holdings in rupee value terms.

 

Here is Sunil Singhania's portfolio as of Sept-21.
 

Stock Name

Percentage Holding

Holding Value

Holding Movement

Mastek Ltd

5.7%

Rs.484 crore

No Change

Route Mobile

3.3%

Rs.428 crore

No Change

Jindal Stainless Hissar

3.9%

Rs.298 crore

No Change

Saregama India

1.7%

Rs.127 crore

No Change

IIFL Securities

3.7%

Rs.124 crore

No Change

Acrysil Ltd

6.2%

Rs.124 crore

Reduced in Q2

Somany Home Innova

3.5%

Rs.121 crore

No Change

HIL Ltd

2.6%

Rs.98 crore

No Change

Polyplex Corp

1.6%

Rs.93 crore

Increased in Q2

 

The top-10 stocks account for 70% of the value of the portfolio of Sunil Singhania (Abakkus) as of end Sep-21.

Stocks where Sunil Singhania (Abakkus) added to the holdings

Let us look at the fresh addition of stocks to his portfolio first in the Sep-21 quarter. There were 3 new additions made by Sunil Singhania (Abakkus) during the Sep-21 quarter. These include a 2.5% stake in the Paras Defence IPO worth Rs.88 crore, 2% stake worth Rs.36 crore and 1.5% stake in PSP Projects worth Rs.29 crore.

There were also some stocks where Sunil Singhania increased his positions. He made marginal accretions of 10-20 bps to his positions in stocks like Sarda Energy, Ion Exchange, Somany Home Innovations, HIL and Surya Roshni.

What stocks did Sunil Singhania (Abakkus) downsize in his portfolio?

In the Sep-21 quarter, Sunil Singhania marginally reduced his stake in stocks like Route Mobile and Acrysil Ltd where the reduction in stake was between 10 bps and 30 bps. There were 3 stocks where the stake of Sunil Singhania (Abakkus) fell to below 1% during the September quarter; the reporting threshold for exchange filings. Here are the details.

a) Stake in Nureca Ltd was reduced from 1.4% to below 1%

b) Sunil reduced is stake in UGRO Capital from 1.5% to below 1%

c) The stake in Xchanging Solutions Ltd was reduced from 4% to below 1%

All the above reductions in stake happened during the Sep-21 quarter.

Sunil Singhania (Abakkus) Portfolio Performance in retrospect.

How did the portfolio perform as of the end of September 2021 quarter compared to different time frames in the past. His portfolio currently stands at Rs.2,715 crore but the portfolio reporting only began over the last 3 years. Since the portfolio has also been a subject of fund inflows, we only look at returns over the last one year.

Between Sep-20 and Sep-21, the portfolio value has gone up from Rs.676 crore to Rs.2,443 crore. That translates into annualized portfolio appreciation of 261%. Among his recent additions in the Sep-21 quarter, Paras Defence and Dynamatic Technologies have been virtual multi-baggers and contributed in a big way to the performance in the last one year.

Also Check:-

1) Vijay Kedia Portfolio - September 2021

2) Radhakishan Damani Portfolio - Sept 2021

3) Ashish Kacholia Portfolio - Sept 2021

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Muhurat Trading 2021: Diwali Muhurat Trading Session

Muhurat Trading – 2021
by 5paisa Research Team 27/10/2021

Muhurat Trading 2021 - Samvat 2078

The history of Muhurat trading is almost as old as the Bombay Stock Exchange itself. The business community from Gujarat and Rajasthan, that has traditionally dominated the stock exchange membership and trading considers Diwali an auspicious occasion.

It is considered to be the period when Goddess Laxmi visits the homes and offices of people in all her splendour. Goddess Laxmi is revered as the embodiment of wealth and prosperity so Muhurat Trading 2021 is intended as a harbinger of prosperity through the year.

An interesting piece of information on this topic. The start of the Hindu Samvat calendar approximately corresponds to 56 or 57 BCE. That is why the Samvat calendar is 56 years and 7 months ahead of the English calendar. On the day of Diwali 2021, the Samvat 2078 will be ushered.

The Muhurat Trading is to commemorate the start of the new Samvat 2078. That is when the traditional business community opens their books of accounts and hence it is also celebrated as “Chopdi Pujan”.
 

Muhurat Trading Session

Date - November 4

Trading Time - 6.15 p.m. to 7.15 p.m.


For the year 2021, the Muhurat Trading will be conducted on the stock exchanges on 04-November between 6.15 PM and 7.15 PM. The Muhurat trading time is based on astrologically defined auspicious time of the day.

On 04 November, the block deal session will go on for 15 minutes from 5.45 PM till 6 PM. The pre-open session will take place for 8 minutes between 6 PM and 6:08 PM. The pre-open will be the order collection and the order matching period. You would find it interesting to know that all the trades executed in the Diwali Muhurat trading result in settlement obligations.

Looking back at the previous Muhurat Trading

Last year, the special Muhurat Trading session was held on 14-November 2020. On the previous Muhurat day, the Nifty had closed at the level of 12,780. As of 27-October 2021, the Nifty is up a full 42% since the last Muhurat Trading close. That is surely a lot of wealth created by the stock markets in a span of one year. On the last Muhurat Trading session, the Sensex saw 22 stocks advancing and only 8 stocks declining. 

The best Muhurat trading performance till date happened on the Muhurat Trading session at the peak of the global financial crisis in 2008. During that Muhurat Trading session on 28-October 2008, the Sensex closed with gains of a full 5.86%, the best Muhurat session ever.

Except the Muhurat Trading Time, Stock Market will remain close, check Stock Market Holidays 2021

 

Read More: 7 Stocks to Buy This Diwali 2021

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PB Fintech Limited (Policybazaar) IPO - 7 Things to Know About

PB Fintech Limited (Policybazaar) IPO - 7 Things to Know About
by 5paisa Research Team 27/10/2021

PB Fintech Ltd, the company behind the digital brand Policybazaar, opens its IPO on 01-November. Policybazaar offers an agnostic platform for potential customers to research, compare, shortlist and buy insurance policies online.

Apart from Policybazaar, PB Fintech also offers the highly popular Paisabazaar, which provides online loans and real time credit rating for potential borrowers.

 

Here are 7 things to know about PB Fintech IPO
 

1) Policybazaar was launched in 2008 to offer consumers greater choice and transparency in the choice of insurance policies. Policybazaar offers a wide palate of over 340 products including term policies, health policies, motor, home and travel insurance. 

2) Policybazaar has a 93.4% market share in terms of number of digital policies sold as per a Frost & Sullivan Report. Even if you look at in terms of volumes of policies sold, over 65% of all digital policies sold in India are through the Policybazaar platform. Like most digital plays, PB Fintech is also loss making and it made a loss of Rs.150cr in FY21.

3) Policybazaar has some core strengths like an agnostic platform, ability to execute call to action, deep partnerships with originators, proprietary technology ensuring deep customer intelligence and insights as well as very high renewal rates in the business.

4) The PB Fintech IPO will be open for subscription from 01-November to 03-November. The price band has been fixed in the range of Rs.940-980. The total issue size will be Rs.6,017 crore comprising of a fresh issue of Rs.3,750 crore and OFS of Rs.2,267 crore.

5) The fresh issue component of Rs.3,750 crore will go towards a number of value accretive purposes. Rs.1,500 crore will be allocated to building brand awareness of the PB Fintech family.

It will allocate Rs.375 crore for customer expansion while it has allocated Rs.600 crore for strategic acquisitions and inorganic growth. It will also allocate Rs.375 crore for global expansion plans.

6) The basis of allotment will be finalized on 10-Nov while refunds will be initiated on 11-November. While the shares will be credited to respective demat accounts on 12-November, the shares will be listed on the NSE and BSE from 15-November.

7) PB Fintech has a Marquee list of lead managers including Citigroup, HDFC Bank, I-Sec, IIFL Securities, Jefferies, Kotak Mahindra Capital and Morgan Stanley. Link Intime will be the registrars to the issue.

The PB Fintech issue will be to enhance the visibility of both its digital brands viz. Policybazaar and Paisabazaar. Info Edge, which owns a significant stake in Zomato, also owns a major stake in PB Fintech.

Also Read:

Upcoming IPOs in 2021

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