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Is Adani power a good buy? | Fundamental Analysis

What does Adani Power do? Adani Power is a coal based electric power generation company that has approximately 10,000 megawatts generation capacity. Balance sheet analysisThe company's average current ratio for the last three years is 0.58, and the industry's current ratio is 1.96. Current ratio of the company has not been increasing in the previous ten years. It means the company is not capable of paying its debt by selling its assets in the short term, which is a bad sign for a company. Average ROE for the last three years is -1.53, which is even lower than the industry's average i.e., -0.05. It means that the management is not effectively using its assets for generating profits.Average debt-equity ratio over the previous three years is 27.8, which is much higher than the industry's average(1.86). Though the power sector is a capital intensive industry, 27 times debt to equity is a financial risk for the company. It means company won't be able to cover all outstan…
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Why Google is interested in Vodafone? | Google-Vodafone deal

Google is in talks with Indian telecom giant Vodafone Idea for a 5% stake in the company. The valuation or the direct investment numbers haven't been revealed yet and when asked Google and Vodafone both have declined to comment on this. Why Vodafone-Idea need money?In late last October, the Supreme Court of India gave it's ruling on a decade-old adjusted gross revenues(AGR) case where the supreme court asked Vodafone to pay Rs. 28,300 crore (expected to be  53,000 crores) in dues and interests to the Indian Government. Out of the huge amount Vodafone-Idea has already paid Rs. 6,854 crores which are the principal amount, it needed to pay as of March 6, 2020. 
Some respite came to the company where they got Rs. 733 crore tax relief. Also, the tariff hikes late last year has helped the company to survive so far. Vodafone India's parent company (Vodafone Group plc) with a 45% stake has been looking for investors as they don't want to put any more money into the business. Sudd…

HDFC Q4 Earning Results | Profits fell by 21.97 % YoY | Net Interest Income rose 17 % YoY

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Resources: Economic Times
Money Control
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Business Standard

What is Reliance Industries Ltd. rights issue?

What is the rights issue?Before discussing the Reliance's right issue, we need to understand what a rights issue is. It is an invitation to the existing shareholders in which a shareholder has a right to purchase shares at a discounted price. Existing shareholder of a company get three options:Exercise their right to buy the shares at a discounted price.Renounce their right to buy the share. It can be done by selling their right on the market which can be exercised by another investor. Do nothing.What is Reliance's rights issue, and why are they issuing them?On May 16, Reliance Industries Ltd announced that it would open its Rs. 53,215 crore rights issue for the subscription. They set the rights issue price at Rs. 1257 which is 14 percent discount to the last closing price (Rs. 1459) on May 15. May 14 is the record date for the rights issue, which means only shareholders who own the shares of the company by that date are eligible to participate in exercising the rights issues.…

Why Vedanta share price is going up?

Mining mogul Anil Agarwal is considering voluntary delisting Vedanta from the Indian stock market. He will offer Rs. 87.5 to the 49.46 percent public shareholders of Vedanta. Promoter group Vedanta Resources Ltd holds 50.14 percent of the subsidiary company, Vedanta. It is not the first time Vedanta is delisting its stock from the stock market. They have previously delisted their share from the London Stock exchange in 2018. 
Vedanta LSE DelistingIn an interview given to India Today in 2018, Anil mentioned - "The London listing has served us extremely well since that time. However, given the subsequent growth of our underlying businesses and the maturity of the Indian capital markets, together with related feedback from our shareholders and other stakeholders, we have concluded that a separate London listing is no longer necessary to achieve the Vedanta Group's strategic objectives." 
In the same year, thirteen unarmed protesters were killed in the police firing, demanding…

Modi Package Announcement: What it means for the economy?

The Indian economy is a clear victim of COVID-19 and we have been staring at the unemployment numbers and the dismal performance of the stock market for almost 3 weeks now. After the initial stimulus package of Rs 1.7 Lakh Crores aimed at farmers and daily wage workers, Prime Minister Modi has tried to inject the lagging economy again with a stimulus package of Rs 20 Lakh Crores this time.
How does this impact the economy? We have listed down some of the impacts of this package. 1. The power distribution companies    There was already a 3-month halt on any payments for the electricity bought by these companies like Power Finance Corporation(PFC), Rural Electrification Corporation Limited(REC), etc. In today's announcement, Nirmala Sitharaman said that we will add Rs 90,000 crore to clear outstanding bills and salaries for the employees. 2. China    As China's manufacturing industry tries to recover from COVID-19, Modi is trying to entice foreign investment in India's manufact…

Reliance JIO: Three big deals in 3 weeks. Why?

"We have a very clear road map to becoming a zero-net-debt company within the next 18 months, that is by 31 March 2021," Mukesh Ambani (Chairman, Reliance industries) announced this in an annual general meeting (AGM) last year. He wants to bring the net-debt (not gross debt) from Rs 1,61,035 crore to zero by March 2021. He also set a target to grow the company's EBITDA by 15% annually over the next five years. Reliance was a debt-free company until 2012, but since then,debt has increased by 400%.
Reliance's high net-debt: One of the primary reasons for the colossal debt of Reliance industries is the investment in Reliance Jio. The company has so far invested close to Rs 3 lakh crore in Jio, and the total debt grew by Rs 69,000 crore in just last year.
Another reason is the Rs 1 lakh crore investment in the petrochemicals business in the last 10 years.

To achieve this target of making Reliance a zero net-debt company by next year, Reliance has successfully cracked …