Rolex Rings IPO – Facts you should know

Rolex Rings IPO
IPO
27/07/2021

Rolex Rings IPO opens on 28 July and closes on 30 July. It is a mix of fresh issue and an OFS and is priced in the band of Rs.880-900. Here are some facts to know about the Rolex Rings IPO.

- The issue consists of a fresh issue of Rs.56 crore and an offer for sale of 75 lakh shares. At the upper end of the price band, this works out to Rs.675 crore of OFS taking the total issue size of Rolex Rings IPO to Rs.731 crore.

- Retail investors are allowed to bid in minimum lots of 16 shares and in multiples of 16 shares thereof. They can apply for a maximum of 13 lots which translates into an investment of Rs.187,200. Upper limit for retail quota is Rs.2 lakh per application.

- Rolex Rings is ranked among the top-5 bearing companies in terms of installed capacity. It basically manufactures hot rolled forged and machined bearing rings and automotive components. Rolex Rings basically caters to the needs of two wheelers, passenger vehicles, CVs, EVs, railways and even industrial machinery.

- Rolex Rings has installing forging capacity of 144,750 MTPA plus capacity of 69 million machine parts annually. Its location in Rajkot helps it to easily access the automobile clusters in North India, western belt and even in South India. Rolex also supplies to over 60 global customers spread across 17 countries.

- For FY21, despite COVID stress, Rolex Rings earned net profit of Rs.87 crore on sales of Rs.616 crore implying net margins of 14.12%. Between FY19 and FY21, Rolex Rings reduced debt equity ratio from 1.79X to 0.70X.

- Rolex is likely to debut with a market cap of Rs.2,450 crore and a P/E ratio of 28X, which is competitive in the forging industry.
 

Also Read: Rolex Rings IPO - An Indirect Automobile Play

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SIP Calculation: How to Make Rs. 1 Crore for Retirement

SIP Calculation - How to Make Rs. 1 Crore
by Nikita Bhoota 27/07/2021

A systematic investment plan or SIP is a regular investment in a mutual fund (typically monthly). By investing regularly, there is discipline, there is forced savings and the benefit of rupee cost averaging works in your favour. Above all, these SIPs will help you achieve long term financial goals like retirement, children’s education etc with ease and confidence.

Today it is very simple to work out how much you need to save each month to reach your target corpus. Talk about a popular target of Rs.1 crore corpus on retirement. You will be surprised at how little you need to save if you start early enough. Check this table.

SIP Calculation Table:

Target

CAGR Yield

Period

Instrument

SIP - Nominal

SIP - Real

Rs.1 crore

14%

10 Years

Equity Fund

Rs.38,160

Rs.54,500

Rs.1 crore

14%

15 Years

Equity Fund

Rs.16,320

Rs.28,800

Rs.1 crore

14%

20 Years

Equity Fund

Rs.7,600

Rs.16,900

Rs.1 crore

14%

25 Years

Equity Fund

Rs.3,675

Rs.10,500

This is very simple if you use a SIP calculator or a systematic investment plan calculator. Most mutual funds offer this mutual fund calculator to help you evaluate how much SIPs can earn.

SIP Calculation:

Focus on the second last column, which shows you how much you need to save each month to reach a target corpus of Rs.1 crore on retirement. Just look at the contrast! If you have just 10 years to retirement, you must save Rs.38,160 per month in an equity fund SIP to reach Rs.1 crore on retirement. However, if you start planning 25 years before retirement, you just have to save Rs.3,675 per month to reach the same target. 

That is how much difference an early start makes. The last column shows how much you must save in inflation-adjusted terms, but that is only an added information.

Key takeaways for SIP Investment & Calculation: 

There are some important rules for your SIP to be effective so that you reach your target corpus of Rs.1 crore by retirement.

• Start as early as possible. The earlier you start, the more your corpus earns returns and these returns also generate returns. That is called the magic of compounding and can work wonders to your money in the long term.

• Over the long term, you can afford to take higher risk. Sensex has given 16.5% CAGR returns over last 40 years. So, 14% CAGR on equity funds is not only possible but also absolutely realistic. For long term investing, equity funds offer the best option.

• SIP is not just a random investment, but it is a discipline. Hence, it must be ensured that once you start the SIP, you don’t stop the SIP mid-way. That way, all the benefits of compounding are lost.

• Lastly, opt for the growth plans rather than the dividend plans as the growth plans have an automatic compounding facility built into them. Also, capital gains are more tax efficient compared to dividends on mutual funds.

The moral of the story is that no financial goal is too steep if you start early enough and invest regularly in the right asset class. That is what equity fund SIPs are all about!
 

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Glenmark Life Sciences IPO Day 1 Subscription

Glenmark Life Sciences IPO Day 1 Subscription
IPO
27/07/2021

The Rs.1,514 crore IPO of Glenmark Life Sciences, consisting of Rs.1,060 crore of fresh issue and Rs.454 crore offer for sale, got a solid response from retail investors on Day-1. As per the combined bid details put out by the BSE, Glenmark Life IPO had been subscribed 2.78 times, with chunk of the demand coming from the retail segment followed by HNI segment. 

As of close of 27 July, out of the 150.18 lakh shares on offer in the IPO, Glenmark Life Sciences saw applications for 417.17 lakh shares at the end of Day-1. This implies an overall subscription of 2.78 times. The granular break-up of subscriptions is interesting. The QIB portion got hardly any subscriptions on Day-1 as these QIB subscriptions typically come in on the last day.

 

Glenmark Life Sciences IPO Subscription Details Day 1

Date QIB NII Retail Total
July 27, 2021 17:00 0.00x 0.86x 5.17x 2.78x

 

However, it must be remembered that on 26 July, Glenmark Life has already done an anchor placement of 63.10 lakh shares to QIB investors like HSBC, Copthall, Kuber, Oaktree, IMF, Norwegian Pensions, Reliance General etc. The original 50% QIB quota for the IPO has been reduced by the anchor investment amount.

Read: 5 Reasons to invest in Glenmark Life Sciences IPO

 

HNI portion got subscribed just 0.85 times but the funded applications come in on the last day, when we will get a clearer picture. The real big story was the retail portion, which is already subscribed 5.16 times at the end of Day-1, showing strong retail investor appetite.

Among retail investors; out of the 75.43 lakh shares on offer, valid bids were received for 389.49 lakh shares, of which bids for 315.58 lakh shares were received at the cut-off price. The IPO is priced in the band of (Rs.695-Rs.720) and will close for subscription on Thursday, 29 July.

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Glenmark Life Sciences – 6 Facts to Know Before Investing

Glenmark Life Sciences IPO
IPO
27/07/2021

Glenmark Life Sciences IPO opens on 27 July and will close for subscription on 29 July. Priced in the price band of Rs.695-720. Here are some interesting facts you must know about Glenmark Life Sciences.

Glenmark Life Sciences: 6 Things You Should Know

• Glenmark Life Sciences is the active pharma ingredients (API) arm of Glenmark Pharma. Today, Glenmark Life Sciences accounts for 35-40% of the total valuation of Glenmark Pharma and Glenmark Life is estimated to be valued at a market cap of Rs.8,820 crore on the day of listing.

Also Read: 5 Reasons to Invest in Glenmark Life Sciences IPO

• Glenmark has a portfolio of 120 molecules and till May-21, Glenmark Life had filed a total of 403 Drug Master Files (DMF). The DMF is unique to the API industry and India has an inordinately share of DMFs filed.

• Glenmark has an installed capacity of 727 KL of API manufacturing annually and the expansion is likely to take the total installed capacity to 930 KL by 2023. Teva, Torrent, Aurobindo and KRKA are among its key customers among generic companies.

Read Now: Other Pharma API Stocks to Invest In

• In the last 3 years, Glenmark has started working with innovator pharmaceutical companies in the CDMO (contract development and manufacturing operations) space. While this is 10% of revenues, it is a high growth and high margin area.

• Glenmark Life currently has a portfolio of 120 molecules and these 120 molecules have an estimate market size of $160 billion by the year 2023. That leaves a huge scope for the growth of business for Glenmark Life.

• Between FY21 and FY23, Glenmark Life expects its sales to grow at a CAGR of 42%. During this same period, it expects its EBITDA to grow at a CAGR of 57% while the PAT is expected to grow at a CAGR of 72%. That should be able to justify current P/E ratio of 23X quite easily.
 

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L&T and Tata Motors - Quarterly Results

Tata Motors L&T results
27/07/2021

Larsen & Toubro reported 37.98% growth in total sales at Rs.29,335 crore while net profits were up nearly 4-fold at Rs.1,174 crore. Among the various verticals, infrastructure, power, heavy engineering, hydrocarbons and IT did better compared to Jun-20. Only IT services outperformed on sequential basis too. Here is a quick financial summary of Q1.

Rs in Crore

Jun-21

Jun-20

YOY

Mar-21

QOQ

Total Income (Rs cr)

₹ 29,335

₹ 21,260

37.98%

₹ 48,088

-39.00%

Operating Profit (Rs cr)

₹ 2,454

₹ 948

158.81%

₹ 5,572

-55.96%

Net Profit (Rs cr)

₹ 1,174

₹ 303

287.42%

₹ 3,293

-64.33%

Diluted EPS (Rs)

₹ 8.35

₹ 2.16

 

₹ 23.42

 

OPM

8.37%

4.46%

 

11.59%

 

Net Margins

4.00%

1.43%

 

6.85%

 

 

The total order book of L&T stood at Rs.323,721 crore as of 30-Jun. The EBITDA margins of various divisions of L&T can be summarized as under for Jun-21. Infrastructure sector had EBITDA margins of 7.1%, power 2.5%, heavy engineering 17.9%, Defence 20.3%, hydrocarbons 9.6%, IT 23.1% and financial services 8.4%. 
In the last 5 months, HDFC Securities, Prabhudas Liladher and Edelweiss have upgraded their target for L&T while Motilal downgraded its target for L&T.

Tata Motors Ltd net sales were up 107.63% at Rs.66,406 crore for the Jun-21 quarter. Net loss at Rs-4,451 crore narrowed over the previous year. The company took a tax write-off in JLR books but the performance was also impacted by the shortage of microchips, commodity inflation and pandemic-driven slowdown. Here is a quick financial summary for of Q1.
 

Rs in Crore

Jun-21

Jun-20

YOY

Mar-21

QOQ

Total Income (Rs cr)

₹ 66,406

₹ 31,983

107.63%

₹ 88,628

-25.07%

Operating Profit (Rs cr)

₹ -959

₹ -4,917

-80.49%

₹ 7,157

-113.41%

Net Profit (Rs cr)

₹ -4,451

₹ -8,438

N.A.

₹ -7,605

N.A.

Diluted EPS (Rs)

₹ -11.62

₹ -23.46

 

₹ -20.24

 

OPM

-1.44%

-15.37%

 

8.07%

 

Net Margins

-6.70%

-26.38%

 

-8.58%

 

 

CV segment saw 3.67X growth in sales at Rs.7,854 crore while PV segment saw growth of 4.4X growth at Rs.5,194 crore. The largest segment of Jaguar Land Rover grew 89% yoy at Rs.51,795 crore. JLR reported pre-tax loss of £110 million and free cash outflow of (£996) million in Jun-21 quarter.

In the last 3 months, HDFC Securities and Edelweiss upgraded their targets for the stock while Motilal and BNP Paribas downgraded their targets for Tata Motors.
 

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Axis Bank and Kotak Mahindra Bank – Quarterly Results

Axis bank kotak bank results
27/07/2021

Axis Bank Ltd reported 4.73% rise in total revenues at Rs.20,285 crore in Jun-21 quarter. Net profits were up 114.36% at Rs.2,357 crore. Net interest income grew 11% to Rs.7,760 crore while the Net Interest Margins (NIM) improved by 6 bps to 3.46%. Fee income provided the big boost with 63% yoy growth.

Here is a quick financial summary of Q1

Rs in Crore

Jun-21

Jun-20

YOY

Mar-21

QOQ

Total Income

₹ 20,285

₹ 19,368

4.73%

₹ 20,978

-3.30%

Net Profit

₹ 2,357

₹ 1,100

114.36%

₹ 2,941

-19.87%

Diluted EPS

₹ 7.67

₹ 3.89

 

₹ 9.58

 

Net Margins

11.62%

5.68%

 

14.02%

 

Gross NPA Ratio

3.85%

4.72%

 

3.70%

 

Net NPA Ratio

1.20%

1.23%

 

1.05%

 

Capital Adequacy

18.67%

17.29%

 

19.12%

 

 

For Jun-21 quarter, retail banking and treasury revenues were marginally higher by 2-3% but corporate banking revenues were down. In Q1 CASA deposits were up 19% with CASA deposits accounting for 42% of deposit base. Gross NPAs at 3.85%, was lower yoy from 4.72%, which is a positive signal. 
Among brokers ICICI Securities, HDFC Securities and Motilal Oswal have upgraded their target for Axis bank while Edelweiss has downgraded its price target.

Kotak Mahindra Bank Ltd reported 3.87% rise in total revenues to Rs.12,800 crore in the Jun-21 quarter. Net profits were flat at Rs.1806 crore. Kotak reported EBITDA losses in retail banking and in insurance. While retail banking pressure came from rising NPAs, the pressure on insurance came from a spurt in death claims due to COVID 2.0. Here is the financial gist.
 

Rs in Crore

Jun-21

Jun-20

YOY

Mar-21

QOQ

Total Income

₹ 12,800

₹ 12,323

3.87%

₹ 16,176

-20.87%

Net Profit

₹ 1,806

₹ 1,853

-2.51%

₹ 2,589

-30.25%

Diluted EPS

₹ 9.11

₹ 9.56

 

₹ 12.86

 

Net Margins

14.11%

15.03%

 

16.01%

 

Gross NPA Ratio

3.58%

2.67%

 

3.22%

 

Net NPA Ratio

1.34%

0.89%

 

1.23%

 

Capital Adequacy

23.11%

21.23%

 

22.26%

 

 

Overall customer assets (advances plus deposits) grew to Rs.235,358 crore in Jun-21 quarter compared to Rs.216,819 crore in Jun-20 quarter. In Q1, the CASA ratio improved from 56.7% to 60.2% while PAT margins stood at 14.11% in the Jun-21 quarter. Gross NPAs at 3.58%, were high compared to 2.67% last year. 

Among brokers, BNP Paribas and HDFC Securities have upgraded Kotak Bank while Axis Securities and Motilal Oswal downgraded the target.