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Titan Company 2460.10 (0.22%)
UltraTech Cem. 7354.20 (1.17%)
UPL 741.50 (3.96%)
Wipro 671.10 (0.44%)

Subhash Chandra Takes Up a Good Deal on his Zee Stake

Subhash Chandra Takes Up a Good Deal on his Zee Stake
by 5paisa Research Team 24/09/2021

One week is a long time in the history of any business. We saw that live in the previous week as the erstwhile controlling promoters of Zee moved from a defensive position to a position of strength. Let us first rewind to Monday, 13th September.

That was the day, the stock of Zee saw a sudden rally. There were reports that two large institutional investors of Zee, viz. INVESCO and OFI China Fund wanted Punit Goenka, the son of Subhash Chandra, to resign from the position of MD and CEO. 

Their contention was that for the 3.44% holding in Zee Entertainment, the Subhash Chandra family was exercising inordinate clout. It was also confirmed that two directors; Ashok Kurien and Manish Chokhani had already resigned from the Zee Board.

If that looked like end-game for the Subhash Chandra family, that would have been a gross misjudgement. By 20th September, Zee Entertainment had announced a mega merger with Sony Pictures.

The idea was to combine the sports and general entertainment franchise of Sony Pictures with the strong regional content franchise of Zee. The term sheet also specified that Punit Goenka will continue as MD & CEO for 5 years.

Also Read :- What does the Zee merger with Sony mean?

If that looked like a symbolic victory for Subhash Chandra, more is on the way. The family stake was to get diluted from 3.44% to 2% due to the deal. However, Sony has topped up with an additional 2% stake to Subhash Chandra as part of the non-compete clause. 

This 2% will be given to Subhash Chandra out of the Sony Pictures stake. Effectively, Sony will end with just about 50.93% stake. In addition, Subhash Chandra also gets the option to increase this stake from 4% to 20% subject to terms and conditions. 

Sony has had it good too. While they are infusing $1.4 billion in cash into the new entity, they get access to the vast library and regional content stack of Zee. That is the perfect launching pad for its OTT initiatives and to take on the might of Disney Hotstar in India. In a way, it is good that the promoter does not lose control over his brainchild.

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BTST/STBT Trading Tips for Today: 24th September, 2021

BTST/STBT Trading Tips for Today
24/09/2021

5paisa analysts bring the best intraday ideas, short-term ideas and long-term ideas for you. In the morning we provide best momentum stocks to buy today, while in the last trading hour we provide Buy Today Sell Tomorrow (BTST) and Sell Today Buy Tomorrow (STBT) ideas.

BTST/STBT Trading Ideas for Today

1. BTST : NIITLTD

- Current Market Price: Rs.380

- Stop Loss: Rs.374

- Target: Rs.395

 

2. STBT : SRTRANSFIN SEP FUT

- Current Market Price: Rs.1,353

- Stop Loss: Rs.1,366

- Target: Rs.1,325

 

3. STBT : INDIAMART SEP FUT

- Current Market Price: Rs.8,476

- Stop Loss: Rs.8,517

- Target: Rs.8,380

 

4. BTST : KAJARIACER

- Current Market Price: Rs.1,227

- Stop Loss: Rs.1,212

- Target: Rs.1,265

 

5. BTST : GHCL

- Current Market Price: Rs.421

- Stop Loss: Rs.416

- Target: Rs.434
 

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Casagrand to File DRHP for Rs.800 Crore IPO

Casagrand to file DRHP
by 5paisa Research Team 24/09/2021

With the NSE Realty Index at all time highs, there is a surge of interest in realty stocks. Chennai based Casagrand is the latest in the list of realty companies planning to file its draft red herring prospectus (DRHP) with SEBI for an initial public offer. The company plans to file the DRHP by early October but the actual issue may come only in the beginning of the next calendar year. The funds will be used to fuel its aggressive growth plans.

While the details of the IPO are yet to be firmed up, it is reported that the IPO size could be in the range of Rs.800-1,000 crore, which will include a fresh issue portion and also an OFS. Motilal Oswal and JM have been appointed lead managers for the issue. Casagrand had recently raised around Rs.1,200 crore from two reputed PE firms viz. Apollo Global and KKR.

While Chennai will be its core market, Casagrand plans to expand its Bengaluru franchise and also make a foray into Hyderabad. It plans to invest Rs. 1,500 crore in Hyderabad and Bengaluru. Going ahead, Bengaluru and Hyderabad are estimated to contribute 35% of revenues while Chennai will contribute 65%.

During the current year, the company plans to acquire land parcels with turnover potential of Rs.10,000 crore compared to Rs.6,000 crore last year. In terms of total sales revenues, Casagrand proposes to enhance its sales revenues from Rs.2,300 crore in FY21 to Rs.3,750 crore in FY22. It also hopes to gain from the revenge buying expected to emerge as the economy recovers from the lag effect of the pandemic.

While Casagrand is currently developing upmarket villas with an average ticket size of Rs.85 lakhs, it wants to largely focus on the affordable housing segment in the range of Rs.25 lakhs to Rs.45 lakhs. The broad plan is that by 2024, Casagrand will develop 25 million SFT of residential projects and 5 million SFT of office properties. In addition, it also plans to develop around 10 million SFT of warehouse logistics space.

Also Read:-

Upcoming IPOs in 2021

Upcoming IPOs in September 2021

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Stellar numbers by Accenture and what it means for Indian IT

Stellar numbers by Accenture
by 5paisa Research Team 24/09/2021

Accenture has a financial accounts reporting year-end in August and has just reported its fourth quarter and full year ended August 2021 i.e. for the Sep-20 to Aug-21 period. The company is predominantly into IT services and consulting.

The company is domiciled in Ireland, but being one of the largest IT services and consulting companies in the world, Accenture sets the tone for other major IT services companies. Nearly one-third of its global manpower is located in India.

For the fourth quarter ended August 2021, Accenture reported 24% growth in top line revenues on YoY basis at $13.40 billion. The company reported 11% growth in diluted EPS at $2.20 for the quarter.

The operating margins for Accenture in Q4 stood at 14.6%, an expansion of 30 bps on a YoY basis. Accenture reported operating cash flows of $2.4 billion and free cash flows (FCF) of $2.2 billion. During the quarter, the company also reported new bookings of $15 billion.

For the full year, Accenture reported revenues up 14% at $50.5 billion while diluted EPS was up 165 at $9.16 per share. For the full year, the new bookings stood at $59.8 billion while the operating margins expanded by 40 bps to 15.1% for the fiscal year ended Aug-21.

Accenture reported 29% growth in consulting revenues for the fourth quarter at $7.31 billion while the outsourcing revenues were up 19% at $6.11 billion. The profit growth in both the segments was largely driven by higher revenues and better operating metrics.

The global benchmarks for Indian IT service companies like TCS, Infosys, Wipro and HCL Tech have been names like Accenture and Cognizant. The solid results signify that corporate IT spending continues to be robust, albeit still strong in the digital arena. It gives optimism that the Indian IT sector can actually better its guidance for the full year.

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Bharti Airtel Rights Issue to Open on 05th October

Bharti Airtel Rights Issue
by 5paisa Research Team 24/09/2021

Bharti airtel has just announced that its proposed Rs.21,000 crore rights issue will be open from 05-Oct to 21-Oct. The rights shares are being issued in the ratio of 1 right share for every 14 shared held i.e. in the ratio of 1:14. The record date for the rights eligibility determination has been fixed as 28-Sep. That means, to be eligible for the rights, investors must have purchased the shares latest by 24-Sep as the stock will go ex-rights from 27-Sep.

The rights shares price has been fixed at Rs.535 per share, which represents a 27.98% discount to the closing price of 24-Sep at Rs.742.90. Normally, companies tend to price the rights at a steep discount to incentivize the existing shareholders to apply for the rights issue. This is the second largest rights issue by an Indian company after the Rs.53,000 crore rights by Reliance Industries last year. In the Bharti rights, 25% is payable on application.

The rights entitlements (RE) will get credited to the demat accounts of eligible shareholders by 04-Oct so that the RE is available to the shareholders at the time of the rights opening. Investors have two choices. They can either use the REs to apply for the rights shares in the proportion eligible. Alternatively, they can just renounce the rights by selling the RE in the market as it will be traded. The RE is expected to list at a premium of 50-60%.

Check: Bharti Airtel Rights Issue - How to Apply for Rights Issue Online

While 25% of the subscription amount will be payable by the rights subscribers on application, the balance will have to be paid in two tranches, which will be intimated to the shareholders separately. Rights represent an expansion of capital base so it is EPS dilutive. Hence the shareholders must either exercise the rights or renounce the rights by selling the RE. Letting the rights expire results in loss for the shareholders.

The rights entitlements will be traded on the stock exchange with an RE suffix and will be permitted to trade between 05-Oct and 18-Oct, during which period, traders choose to exercise or renounce the RE.

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Weekly Stock Market Wrap Up - 20 - 24 September

Weekly Stock Market Outlook
by 5paisa Research Team 25/09/2021

NIFTY 50

Nifty closed on a positive note at 0.17% near 17853 levels on friday. The market breath was bearish with 20 advances against 30 declines.  FMCG, MEDIA, METAL, PHARMA  index ended the session on negative note while Nifty bank, AUTO, Financial services, IT, Realty ended the session in green zone.  

NIFTY BANK 

Niftybank closed on a positive note near 37830.30 levels.  ICICIBANK, hdfcbank, Kotak bank were top gainers while AUbank, IDFCFIRSTB, Bandhanbnk were top losers.
 
WEEKLY TOP3 GAINERS

SCRIP

LTP

%CHANGE

ZEEL

318.90

+24.84

BAJAJFINSV

18526

+10.01

HCLTECH

1358.20

+7.51

 

WEEKLY TOP 3 LOSERS 

 

SCRIP

LTP

%CHANGE

TATASTEEL

1272.10

-8.21

BPCL

414.80

-4.92

JSWSTEEL

659.15

-3.39

 

Weekly Chart- Nifty50

Nifty 25sept

 

Prices have continued to make higher highs higher lows formation from the last eight weeks and formed a bullish candle on the weekly chart for a second consecutive week. As long as we do not see a decisive close below the prior bars low the trend remains positive. Momentum indicators like RSI and MACD to stay positive and market breadth to improve, further strengthening a short-term bullish outlook.

Nifty has shifted its support zone to 17250, so any dip near mentioned support zone will be again fresh buying opportunity with keeping stop out level below 17250 zone & if said levels are held we may see the index march towards 18k mark, resistance is still placed around 18,000 zone where traders can lock some of their long gains.

Nifty find support near 17250 while 18000 will act as a psychological resistance.

WEEKLY CHART- BankNifty

Bank nifty

20-day period Moving Average is acting as a brilliant support line and it has provided support at regular intervals. This suggest that one should be in the direction of the ongoing trend as far as this line is protected and any pullback towards the same should be utilized as buying opportunity.

Banknifty support is placed near 36200 while on higher side 38200 will act as an immediate resistance.


CALL FOR THE WEEK:

 

Westlife

CALL : BUY WESTLIFE ABOVE 577 SL 555 TGT 610

Description:

WESTLIFE has been moving higher recently and intact in strong uptrend. 

On the daily chart, in the previous session the stock formed a bullish candle. We can see rounding bottom pattern has formed. A close above 577 will confirm breakout of rounding bottom pattern. The stock is trading above the ichimoku cloud which indicates that the short term trend is bullish.

We have applied parabolic SAR which used to determine the price direction as well as draw attention to when the price direction is changing. A series of dots placed below the price which is deemed to be a bullish signal. Closest support is placed at 555.

In short, trend for this stock is positive. A break above 575 can lift price higher towards 610-615 as long as 555 holds on the upside.