Morning Updates, Bulk Deals, Corporate Actions, 19/12/2022
Morning Alerts
Taxes account for 67-80% of liquor prices; threatens sector’s future: ISWAI*
High rates of taxation are crippling the alcoholic beverages (alcobev) sector and threatening the future of the liquor industry in the country, the International Spirits & Wines Association of India (ISWAI) said. ISWAI, the apex body of the premium alcobev industry in the country, said that taxes account for 67 to 80 per cent of the product prices, leaving little for the trade to sustain and manage operations. The Indian alcobev industry is in deep crisis due to inflation on one hand and high taxation rates. In this context, it is needed to decrease taxes and raise product prices for the sector to sustain,” ISWAI CEO Nita Kapoor said. Unlike other industries, the liquor industry does not have the freedom to price the products, Kapoor said.
*Demand crunch: Textile sector bats for stimulus, cotton import duty removal*
Textile industry players are batting for removal of import duty on cotton and a stimulus from the government after being hit by a dip in demand due to the global financial crisis and the Ukraine war. The industry has been also affected by the rise in Indian raw cotton prices, which are at least 10-20 per cent higher than international cotton right now. “The rate of Indian raw cotton is 10-20 per cent higher than the international cotton, including the Chinese cotton. This makes Indian spinning mills not to source cotton from India due to the higher rate. At the same time, the Government of India has imposed 11 per cent import duty. This spoils the level-playing field,” said K Venkatachalam, chief advisor, Tamil Nadu Spinning Mills Association (Tasma).
*India committed to improve trade facilitation: Nirmala Sitharaman*
The Centre is committed to improve trade facilitation for every stakeholder, including Customs Department personnel and those involved in the trading communities, said Union Finance Minister Nirmala Sitharaman here on Sunday. Beyond construction of a new building, these days emphasis is also given on how energy-efficient the buildings would be so that there is no pollution or disturbance to anyone, she said at an event here. “I am extremely happy to lay the foundation stone for new office complex ‘Vaigai’ which is aptly named and actually comes out of the commitment that the nation has made to improve trade facilitation”, Sitharaman said at the foundation stone-laying ceremony of new office complex ‘Vaigai’ at Customs House here.
*commodity play*
Gold – Rs 53762/10gm, Silver – Rs 65887/kg, Brcrude – Rs 5943/barrel, Degumsyoil – Rs 1296/10kg, Copper – Rs 701/kg.
*Corporate News*
Tata Steel clears path for environment-friendly coke plant at Jamshedpur.
Adani group to invest Rs 10,700 crore to expand Lucknow airport.
JSPL to invest Rs 7,930 crore under PLI scheme for steel: MD Bimlendra Jha.
SGX Nifty indicates positive start to Indian markets trading at 18366 levels up by 48.5 points or 0.26%.
Sector in focus – Banks, Chemicals, IT & Power.
Bulk Deals & Insider Trades
Bulk Deals
*Gmm Pfaudler Limited : Pfaudler Inc Sell 7785819 Shares @ Rs. 1701.50
*Gmm Pfaudler Limited : Ussl As Trustee Of Universities Superannuation Scheme Buy 730000 Shares @ Rs. 1700
*Gmm Pfaudler Limited : Aditya Birla Sun Life Mutual Fund Ac Birla Sun Life Equity Fund Buy 529412 Shares @ Rs. 1700
*Gmm Pfaudler Limited : Aditya Birla Sun Life Mutual Fund Ac Birla Midcap Fund Buy 441176 Shares @ Rs. 1700
*Gmm Pfaudler Limited : Integrated Core Strategies (Asia) Pte. Ltd. Buy 350000 Shares @ Rs. 1700
*Gmm Pfaudler Limited : Indus Capital Advisors (Uk) Llp A/C Indus India Fund (Mauritius) Limited Buy 308127 Shares @ Rs. 1690.96
*New Delhi Television Limi : Lts Investment Fund Ltd Sell 328888 Shares @ Rs. 366.65
*Anzen Ind Ene Yld Plu Tru : Axis Bank Ltd. Sell 1000000 Shares @ Rs. 101.2
*Paramount Communications : Elara Capital Plc (Fccb) Sell 1000000 Shares @ Rs. 27.05
Insider Trade
* Acquisition*
*Promoter Group Acquisition 64730 shares of Ruchira Papers Ltd.
*V.K. Mercantile Pvt. Ltd Promoter Group Acquisition 245590 shares of Dollar Industries Ltd on 15-Dec-22
*JAYAKAR KRISHNAMURTHY Promoter & Director Acquisition 549570 shares of Ucal Fuel Systems Ltd. on 15-Nov-22
*K Gautam Director Acquisition 14562 shares of Ncl Industries Ltd.-$ on 16-Dec-22
*Aziz Yousuf Zaveri Promoter Group Acquisition 4455 shares of Nrb Bearings Ltd.
*Disposal*
*INDIRA MADAN DEDHIA Promoter Group Disposal 4500 shares of Valiant Organics Ltd
*RAHUL CHAMARIA Promoter Group Disposal 116486 shares of Star Cement Ltd on 14-Dec-22
*LAXMI CHAMARIA Promoter Group Disposal 1000 shares of Star Cement Ltd on 13-Dec-22
*Viinod Kumar Gupta Promoter Disposal 245590 shares of Dollar Industries Ltd on 15-Dec-22
*TCI Finance Limited Promoter Group Disposal 15100 shares of Gati Ltd.
*Invoke*
*Reliance Infrastructure Limited Promoter Invoke 33300000 shares of Reliance Power Ltd. on 12-Dec-22
*Pledge*
*Saroj Kumar Poddar Director Pledge 700000 shares of Chambal Fertilisers & Chemicals Ltd. on 14-Dec-22
Dividend Update
*Narmada Gelatines Ltd. Special Dividend Rs. 100 Ex Date 19-Dec-2022
Corporate Action,Forthcoming
Dividend
19-Dec-22
SHAWGELTIN: Special Dividend – Rs. – 100.00
29-Dec-22
ADVANIHOTR: Interim Dividend – Rs. – 2.00
IPO
KFin Technologies: Open: 19-Dec-22; Close: 21-Dec-22
Elin Electronics: Open: 20-Dec-22; Close: 22-Dec-22
Buyback
Triveni Turbine: Ex-Date: 22-Dec-22
Triveni Engineering: Ex-Date: 22-Dec-22
Kama Holdings: Ex-Date: 22-Dec-22
eClerx Services: Ex-Date: 26-Dec-22
Orbit Exports: Open: 15-Dec-22; Close: 28-Dec-22
Tanla Platforms: Open: 20-Dec-22; Close: 02-Jan-23
Bonus
Sarthak Industries: Bonus Issue 1:3; Ex-Date: 20-Dec-22
Sheela Foam: Bonus Issue 1:1; Ex-Date: 21-Dec-22
Precision Wires India: Bonus Issue 1:2; Ex-Date: 22-Dec-22
Zim Laboratories: Bonus Issue 2:1; Ex-Date: 22-Dec-22
Globe Commercials: Bonus Issue 1:1; Ex-Date: 22-Dec-22
SecUR Credentials: Bonus Issue 3:1; Ex-Date: 26-Dec-22
Advait Infratech: Bonus Issue 1:1; Ex-Date: 28-Dec-22
KPI Green Energy: Bonus Issue 1:1; Ex-Date: 18-Jan-23
Stock Split
Filatex India: Stock Split From Rs. 2/- to Rs. 1/-; Ex-Date: 27-Dec-22
Supreme Petrochem: Stock Split From Rs. 4/- to Rs. 2/-; Ex-Date: 05-Jan-23
Rights Issue
Quint Digital Media: Ex-Date: 22-Dec-22
Hatsun Agro Products: Open: 19-Dec-22; Close: 09-Jan-23
Reduction of Capital
Pratik Panels: Ex-Date: 20-Dec-22
Sankhya Infotech: Ex-Date: 20-Dec-22
Forthcoming Events
19th December: Hinduja Global Solutions; SBC Exports to consider Buyback; Genesys International Corporation to consider Amalgamation; Goodluck India, TruCap Finance to consider Fund raising; Visagar Financial Services to consider Right Issue
20th December: SMLT to consider Dividend; Ashima; Suncare Traders to consider Fund raising; Rajapalayam Mills Ltd. to consider Right Issue
21st December: SIKKO to consider Dividend; Rhetan TMT to consider Bonus issue & Stock Split; Sagar Cements to consider Amalgamation; RKD Agri & Retail, Sankhya Infotech; Vivo Bio Tech; Zodiac Clothing Company, Spandana Sphoorty Financial, Speciality Restaurants to consider Fund raising
24th December: Shriram Transport Finance Company to consider Dividend & Fund raising
26th December: Vaxtex Cotfab to consider Bonus & Fund raising
27th December: ARC Finance to consider Right Issue
28th December: Alexander Stamps to consider Fund raising
03rd January: Karnavati Finance to consider Stock Split
Stocks in Action
Colgate-Palmolive: Colgate is one of the most penetrated brands (88 percent) in India and reaches 9 out of 10 households, and it is 3x bigger than the next oral care player in India. In terms of India, the per-capita toothpaste consumption in urban areas is 1.7X, compared to 0.6X in rural markets. Among urban markets, 20% of the households brush twice a day. In rural India, around 55% of the households do not brush daily. This leaves lot of room for volume growth in rural markets for Colgate India. Also, in the toothbrush category, there is a lot of opportunity to drive volume as well as value growth. Colgate can target higher volume growth 3 in rural markets, given that it is quite under-indexed, compared to urban markets. Company plans to drive premiumisation in the oral care category through leveraging connects with dentists and product innovation in oral care and beauty where consumers are less price-sensitive. Colgate remained committed to drive growth in the personal care portfolio through higher focus on face wash, body wash and hand wash. The management has mentioned that it remains open to inorganic growth opportunities in the personal-care portfolio. Positive on Colgate as the rural markets present a good opportunity for volume growth and higher penetration while urban markets will provide premiumisation opportunity.
Hindustan Aeronautics: HAL is the largest player in defence aeronautics, with capabilities to design, manufacture, repair, and service all sorts of products, including aircraft, helicopters, aero engines, avionics, and others. At present, it is engaged in many of the government’s flagship programmes, such as manufacturing of Tejas fighter jets, etc. Over the years, the company has developed superior technical capabilities. With the government’s focus on developing domestic manufacturing and restricting imports, HAL has emerged as a strong long-term play. The company has benefited because of the government’s focus and increased capex. It is sitting on an order book of close to Rs 83,800 crore, which is close to 4x its annual revenue. In the first half of the current fiscal, the company received orders worth Rs 10,251 crore, of which close to Rs 8496 crore came from the repair and service segment. The order pipeline is equally strong with expected orders for advanced light helicopters, light utility helicopters, polar satellite launch vehicles, Dornier aircraft, and many others. Positive on HAL given the reasonable valuation strong order book and the quality of business.