Morning Alerts 16/12/2022

*GST Council meet: GoM pitches for ‘specific tax levy’ on pan masala, gutkha*
A group of ministers (GoM) tasked by the Goods and Services Tax (GST) Council to look into capacity-based taxation for evasion-prone commodities like pan-masala and gutkha has proposed a “specific tax-based levy”, which is to be linked to their retail prices. At present, these commodities attract 28 per cent GST plus an ad valorem compensation cess. The ministerial panel, led by Odisha Finance Minister Niranjan Pujari, has submitted its final report on the issue, and it is likely to be tabled in the GST Council meeting on Saturday. The report, if approved, will help plug revenue leakages in these sectors at both the retailer and distributor end. The panel observed greater revenue leakages existed at the later stages of the supply chain of such commodities, and since most of the end retailers are small and below the threshold limit for mandatory GST registration, it is difficult to trace them.

*Markets tumble as Federal Reserve retains hawkish tone; Sensex drops 1.4%*
The Indian markets fell along with global peers on Thursday after the US Federal Reserve said interest rates would go “higher for longer”, dashing hopes that the central bank could take a dovish turn, following the softer inflation data of November. The Sensex dropped 879 points, or 1.4 per cent, to end the session at 61,799, posting the biggest daily decline in about two months. The Nifty50 index, on the other hand, fell 245 points, or 1.3 per cent, to settle at 18,415. Index heavyweights like HDFC Bank and Infosys weighed on the market. The Nifty IT Index slipped 2.1 per cent, given its high exposure to the US markets. Foreign portfolio investors (FPIs) sold shares worth Rs 711 crore, while their domestic counterparts provided buying support to the tune of Rs 261 crore. The US and European markets were trading in deep red, with rate hikes by the European Central Bank and the Bank of England adding to investor woes.

*Govt plans to invite bids to extract gold from dumps at Kolar mines*
The central government plans to invite bids to extract gold from 50 million tonnes of processed ore in a cluster of colonial-era mines in Karnataka, a senior government official with direct knowledge of the matter said on Thursday. The Kolar fields, located about 65 kilometres (40 miles) northeast of Bengaluru, are among the country’s oldest gold mines. The Kolar mines, closed more than 20 years ago, held gold deposits worth around $2.1 billion, and India is now keen to take advantage of new technology that can extract gold from even the leftovers of ore that was processed in the past. Other than gold, the government also aims to extract palladium from the processed ore, or dumps, said the official who did not wish to be named in line with official rules.

*Commodity play*
Gold – Rs 53666/10gm, Silver – Rs 66385/kg, Brcrude – Rs 6171/barrel, Degumsyoil – Rs 1296/10kg, Copper – Rs 706/kg.

*Corporate News*
IDBI Bank files insolvency plea against Zee Ent to recover Rs 149 cr.

HPCL to raise Rs 10,000 cr in debt to fund oil refining, fuel marketing ops.

Kalpataru Power Transmission bags Rs 1,397-cr new orders in India, abroad.

SGX Nifty indicates a negative start to Indian markets trading at 18406 levels down by 0.29% or 53 points. Dow Jones also ended yesterdays session in red down by 2.25% at close.

Sector in focus – Banks, IT, Metals & Fertilizers.

Bulk Deals and Insider Trades

Bulk Deals
*Nykaa : Kravis Investment Partners Ii Llc Sell 36787549 Shares @ Rs. 171

*Sapphire : Sapphire Foods Mauritius Limited Sell 3900816 Shares @ Rs. 1347.24

*Sapphire : Mirae Asset Mutual Fund Buy 831360 Shares @ Rs. 1347

*Sapphire : Mirae Asset Mutual Fund Buy 784776 Shares @ Rs. 1347

*Sapphire : Icici Prudential Mutual Fund Buy 640000 Shares @ Rs. 1347

*Sapphire : Fidelity Funds India Focus Fund Buy 626365 Shares @ Rs. 1347

*Sapphire : Kotak Funds India Midcap Fund Buy 430868 Shares @ Rs. 1347

*Sapphire : Pi Opportunities Fund I Buy 400000 Shares @ Rs. 1347

*Sapphire : Government Of Singapore Buy 358704 Shares @ Rs. 1347

Insider Trade

• Acquisition*
• Promoter Acquisition 10200 shares of Ghcl Ltd.

*K Gautam Director Acquisition 10000 shares of Ncl Industries Ltd.-$ on 15-Dec-22

*Promoter Acquisition 79000 shares of Pennar Industries Ltd.

*Brett Enterprises Pvt. Ltd. Promoter Group Acquisition 4000 shares of Vaibhav Global Ltd on 14-Dec-22

*GNA GEARS LIMITED Promoter Group Acquisition 1200 shares of G N A Axles Ltd on 24-Nov-22

*Amit Indubhushan Bakshi Promoter & Director Acquisition 396262 shares of Eris Lifesciences Ltd on 14-Dec-22

Disposal
*Jayanthi Puljal Promoter Disposal 39500 shares of Pennar Industries Ltd.-$ on 13-Dec-22

Corporate Actions

*IPO*
—

*Buyback*
Garware Technical Fibres: Open: 05-Dec-22; Close: 16-Dec-22

*Bonus*
Star Housing Finance: Bonus Issue 1:1; Ex-Date: 16-Dec-22
CL Educate: Bonus Issue 1:1; Ex-Date: 16-Dec-22
Gloster: Bonus Issue 1:1; Ex-Date: 16-Dec-22
Sarthak Industries: Bonus Issue 1:3; Ex-Date: 20-Dec-22
Precision Wires India: Bonus Issue 1:2; Ex-Date: 22-Dec-22

*Stock Split*
S&T Corporation: Stock Split From Rs. 10/- to Rs. 2/-; Ex-Date: 16-Dec-22
Star Housing Finance: Stock Split From Rs. 10/- to Rs. 5/-; Ex-Date: 16-Dec-22
Lancer Containers Lines: Stock Split From Rs. 10/- to Rs. 5/-; Ex-Date: 16-Dec-22

*Rights Issue*
Anjani Portland Cement: Ex-Date: 16-Dec-22
Quint Digital Media: Ex-Date: 22-Dec-22
Hatsun Agro Products: Open: 19-Dec-22; Close: 09-Jan-23

Stock in Action

Stock in Action

PI Industries: PI Industries CSM order book has witnessed robust 29% growth to $1.8 bn and new molecule commercialization remain strong with a target of seven new molecules for FY23 post record 9 new commercialized in FY22. PI Industries is focused to close an acquisition of a pharma company and with respect to that the company has already inducted seasoned leadership team for a foray into the pharmaceutical sector. The company’s target of pharma revenue share of 20- 25% hints towards sustained high growth prospects in the CSM business apart from revenue/earnings diversification. Domestic formulation business is also well placed given its Pan-India presence, improved product offerings and high growth for existing products. Additionally, PI industries is working on new manufacturing process to widen product offerings for agrochemical and introduce products for non-agrochemical and electronic chemicals. Positive on PI Industries given the strong balance sheet to support the organic and inorganic growth and healthy order book which provides strong revenue growth visibility.

JB Chemicals & Pharma ltd.: JB Chemicals & Pharmaceuticals Limited (JB Pharma) entered into an agreement with Glenmark Pharmaceuticals Ltd to acquire the ‘Razel’ franchise. These brands are focused on cardiac segment in India and Nepal with a total covered market size of Rs 2444 crores as per IQVIA MAT Oct’22 data. The combined sales of these brands as per internal estimates are Rs 29 crores for H 1 of FY 2023. The transaction is expected to be closed within next two weeks subject to customary closing formalities. The acquisition of the Razel franchise from Glenmark Pharmaceuticals, thereby marking JB’s expansion into Statins, which is the largest therapeutic segment in cardiology. With this addition, JB Pharma have established strong position in statins besides being among the leaders in Hypertension and Heart failure all the fastest growing therapeutic indications in cardiology. Positive on JB Chemicals & Pharma as the management sees growth potential from the acquired portfolio as it is synergistic with its cardiac segment and will help it leverage its Go to Market Model. Further the products provide good operating leverage and are margin accretive, given its attractive margin profile.

Forthcoming Events

*Forthcoming Event*

16th December: ADVANIHOTR to consider Dividend; Shree Securities to consider Stock Split; Murudeshwar Ceramics to consider Fund raising

17th December: KBS India to consider Stock Split

19th December: SBC Exports to consider Buyback

21st December: Rhetan TMT to consider Bonus issue & Stock Split

26th December: Vaxtex Cotfab to consider Bonus & Fund raising