IFS RESTRUCTURING
Strong demand tailwinds are for all the players: 5 small and midcap real-estate stocks with upside potential of up to 34%
Four years ago, the real estate industry was defined by excess inventory, over leveraged balance sheets and weak demand. Today, a housing project getting launched is getting sold within a few days. The average prices on a per square ft basis have inched upward very sharply in the last one year and still there is no dearth of demand. Now the question is whether this kind of sharp rise in demand is having an impact only on large players or also on mid-sized companies which are focussed in a region only. The fact is that in the case of sectors like real estate, when the tide of demand changes, it changes for every player, be it large or medium. Yes, when it comes to medium-sized players it would be important to look at the players where they have a track record of implementing projects on time. Delivering the project on time is key metrics which determines whether the company which is mid-sized today will become large or not in years to come. As the large ones have seen a sharp rise in the valuations, the focus of the street is now also on mid-sized by well managed companies.
Staying with stronger ones is always better option: 5 Midcap stocks from different sectors with upside potential of upto 42%
In its lifetime every midcap company sees some headwinds. There are many examples from history which show the difference between the companies which have been able to survive and grow even after all the trouble is that of the parent company. A company belonging to a strong industrial group which has a track record of handling many economic cycles in the past has a higher probability of surviving a bad phase and coming back on a growth path as compared to a company in the same line of business which does not have the backing of a strong parent. The reasons are simple, when that midcap company of a large group will see a tough time, at a group level there is management bandwidth in terms of both financial and human resources to help it over bad times. Look over the last two decades at how companies like Voltas, Tata chemicals, which at one point if time were mid sized companies because large and stable business. So, if one is looking at investing in mid-cap, surely have a look if it has the back of a large and strong industrial house.
Restructuring impacts even the smallest player: 5 not so much talked about PSU banks
When it comes to PSU banks, all the limelight is taken by the top players, like SBI, BoB, PNB and one or two others. But the fact is that there are many other small PSU banks, which of course have smaller books and less of national presence, but the fact is that they have been also the beneficiary of the “ reconstruction and restructuring" (R&R) which both government and RBI have done in the banking sector in the last seven years. The good part of any R&R exercise in banking is that all the players whether it is small or large have to follow the rules and that ensures that the operating matrix improves across the sector and which leads to long term beneficial impact. We take a look at 5 small PSU banks, which are not normally in news, but over years they have also seen an improvement in their working. Yes, they have their own risks in terms of loan book and other business risk, but then because they are under owned in institutional space, a bit of institutional buying can lead to sharp re-rating.
Advantage called strong parent: 5 midcap stocks from large industrial houses with upside potential of up to 49%
It is well known that investing in mid-cap comes with its own risks, right from business to risk to market risks. So, as a basic principle one should be more cautious while investing in mid-caps. But the fact is however one might try the fact is that when the narrative is bullish we all tend to lower our guards and end up buying stocks which one should have not bought. So, what about using parameters which probably is not full proof, but history has shown that over a long period of time, it has worked well. That is staying with mid-cap companies from strong industrial groups, which have other companies which are running well. The reason for this strategy is simple, when that midcap company of a large group will see a tough time, at a group level there is management bandwidth in terms of both financial and human resources to help it over bad times. Also the fact that a large group with a track record of creating business will make sure that in the long term these businesses are able to grow. So, we look at 5 mid-cap stocks belonging to strong industrial groups.
A play on restructuring and higher growth: These auto stocks can deliver more than 18% return
In the last four days of strong volatile moves, one sector which has been able to keep its head above the water is the Auto sector. Is it because of results which are expected to be good or it is rotational trade which is taking place, is the question. Whatever might be the reason, after remaining under pressure for one or the other reason, the auto sector has been witnessing a transformation, right from restructuring to a slew of launches, coming from companies. There is a high probability that this trend of restructuring is likely to continue. Check out Stock Reports Plus, powered by Refinitiv, for price targets of over 4,000 listed stocks along with detailed company analysis focusing on five key components - earnings, fundamentals, relative valuation, risk and price momentum to generate standardized scores. SR+ Reports is a complimentary offering to ETPrime members.
Restructuring of Tata Motors: Will these 7 auto companies be forced to follow the same path sooner or later?
The moment Tata Motor raised money from a private equity fund for its EV part of the business it was apparent that sooner or later, the demerger of EV business is bound to follow. But it will come so soon is not something which the street was expecting. Why was the demerger imminent? Not only because there is a PE player who wants to have a road map for the exit even before investing. The other simple fact is that there is no sense in having a single entity for two businesses which are different from the word go. While it might appear that Tata Motors is restructuring the business due to vast differences in the two segments. The fact is that very soon, the difference between the traditional ICE vehicle business and the EV business of even two-wheeler maker or a passenger car maker would also get highlighted and would have a negative impact on the the valuations. So don't be surprised if the large auto players get into mode of restructuring the business to protect both the value and valuations.
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Will the wave of restructuring help? 7 MNC pharma stocks with upside potential of up to 14%
In the last three years, Novartis is the third MNC pharma company which has announced sale of a part of its business in India. Some of these restructuring are being done as part of the global readjustment being made at the parent companies level. The bigger question is whether after this restructuring will the MNC pharma stocks, which have been underperforming for quite some time, be able to make a comeback on the street or not. This answer to this question would depend on multiple factors. Right from the use of the sale proceeds to whether post restructuring focus would be on a 100 percent subsidiary or not. In both positive and negative cases, these stocks probably should be on watchlist as news flow around them increases in coming quarters. We take a look at 7 MNC pharma companies.
Tailwinds of restructured operation and capex cycle: 5 stocks from engineering sector, 2 with upside potential of up to 19%
One sector which bore the brunt of the winter of capital spending was the capital goods and engineering sector. However, thanks to capital expenditure by the government, segment by segment they are making a comeback. First road and infrastructure, then defence and railways. The million dollar question is what next ? There is a high probability that not one but a host of sectors and their sub segments might be getting added to the list as private sector capex shows signs of revival. This would mean that more engineering and capital good companies would see a better order book. The only difference is that unlike railways and defence where one large order comes to be implemented over years. When orders from a pharma, chemical cement or a private sector power company comes, they tend to be smaller in size but to be implemented in a shorter time frame.
Evergrande faces final chance to avoid liquidation by HK court
“If Evergrande fails to deliver an improved restructuring plan that meets the demands of the ad hoc group of creditors, the Hong Kong court is very likely to grant a winding-up order against the company,” said Lance Jiang, a partner at law firm Ashurst LLP.
Foraying into retail ARC at this point is good biz for Shriram Group: Jasmit Singh Gujral
Shriram Group, a financial services conglomerate, is focusing on retail asset restructuring (ARC) as a strategic move amid the growing competition from wholesale asset reconstruction companies (ARCs). The group has announced its entry into retail asset restructuring (ARC) and digital wealth management service businesses. Shriram General Insurance's Vice-Chairman Jasmit Singh Gujral believes retail ARC is a good business to enter, as there is no one in this sector.
Country Garden default talk swirls as offshore debt deadline passes
Country Garden reiterated on Wednesday that it expects to be unable to meet all of its offshore debt obligations and hopes to seek a "holistic" solution to its difficulties.
India approves major foreign service restructuring after 19 years, to add 200+ IFS officers
The Union Cabinet has approved the cadre review and restructuring proposal of the Indian Foreign Service (IFS) to address the need for specialized manpower and meet the increasing demand for Indian missions abroad. Approximately 215 officers will be added over the next five years. This decision comes after 19 years since the last restructuring and aims to strengthen the cadre.
Following poor Karnataka poll results, JD(S) plans to restructure party in a 'big way'
The former chief minister said that JD(S) National President and former Prime Minister H D Deve Gowda has advised that a high-level committee be constituted with representation from all communities for strengthening the party.
Banks reach out to RBI, seek easing of MSME bad loan rules
Banks want that a restructured MSME account under the Covid package be considered NPA from the latest date and not from the date prior to restructuring. This will give some relief to banks as it would lessen their provisioning burden. This comes after, in certain cases, banks were told to treat such accounts as bad loans starting from when they were restructured and accordingly make provisions.
‘If recession comes in the US, we will not be spared'
"We are down actually 14%. The S&P 500 is down 23%, the Dow is 24% and NASDAQ is 31%. So, to that extent, it does appear that we have to some extent decoupled"
Telecom bill provides roadmap for industry restructuring, innovation: Ashwini Vaishnaw
'If restructuring has to happen then these are the things that have to be taken care of. These are the things which are my rights, so that kind of clear framework has been put in this bill," Vaishnaw said.
Home loan, auto loan, personal loan borrowers finding it difficult to repay: How to avoid missing EMIs
As economic slowdown worsens, many borrowers are finding it difficult to repay their loans. Find out how one can avoid missing EMIs.
HDFC Bank's loan restructuring 2.0 policy: Terms and conditions, eligibility, charges
Various banks have announced the terms and conditions for availing their loan restructuring 2.0. Here is a look at the FAQs of HDFC Bank's loan restructuring policy 2.0 as per the lender's website.
Majority of SMEs qualify for restructuring says Crisil
Last fiscal, a third of these SMEs had cushioned their liquidity by availing of the RBI mandated six month moratorium on bank loans. Later a bounce back in demand helped in recovery which had limited the number of companies that had opted for restructuring under the first restructuring window that ended on March 31 2021.
Fitch removes positive outlook on Future Group due to delay in Reliance deal
In a rating note Fitch retained FRL's rating at C, a notch above the default or D grade on its $500 million 5.6% senior secured notes due 2025. Fitch said the removal of the postive outlook "underscores the significant delay in completing the sale, contrary to our previous expectations, after a legal challenge to the deal by an entity controlled by Amazon.com, Inc.
Kishore Biyani’s Future Group offers Rs 6,900 crore to lenders for loan recast
This will help the group buy time and keep an alternative ready, even as it awaits a judicial clearance to complete the sale of its business to Mukesh Ambani’s Reliance Retail.
CG Power lenders agree for loan restructuring, pave way for Murugappa takeover
In separate but almost identical stock exchange filings, CG Power and Murugappa Group firm Tube Investments of India Ltd (TIIL), said lenders have accepted one-time settlement and restructuring of debt.
Is privatization a panacea for reforming DISCOMs?
The Ministry of Power intends to privatize DISCOMs, starting with Union Territories, as a key intervention to resurrect the power distribution business and thereby the overall Power sector.
Department of Telecom set to oppose sale of Aircel, RCom spectrum unless AGR dues paid
If not the telcos, then their buyer or recipient of the airwaves under the insolvency proceedings – UV Asset Restructuring Company (UVARCL) in the case of both Aircel and RCom – should be held liable for statutory dues such as adjusted gross revenue (AGR) dues, officials said.
ICICI Bank loan restructuring: Eligibility, documents required, charges, how to apply
The ICICI Bank has announced on its website the loan restructuring details. According to the FAQs issued, the bank has put out who can apply for the loan restructuring scheme, the additional charges that will be levied and its impact on the credit score report.
SBI loan restructuring: Who can avail the scheme by when and how will the scheme work
The FAQs released by the State Bank of India provide clarity on the list of documents that a borrower needs to submit, if eligible, to get his home/auto/education/personal loan restructured. The loan restructuring scheme is available until December 24, 2020.
With RBI not on same page, fewer companies may qualify
Also, banks cannot escape signing the inter-creditor agreement (ICA) even by doing extra provisions and there will be no restructuring without a signed ICA, according to the RBI notification.
Loan restructuring to hit private lenders’ exclusive deals with borrowers
The special restructuring to tackle Covid-19 stress and the mandatory inter-creditor agreement (ICA) that all lenders will have to sign threaten to upend that strategy that these nimble-footed private banks have perfected over the years.
Banks free to restructure loans, but can't penalise borrowers availing moratorium, SC told
A bench headed by Justice Ashok Bhushan, which commenced final hearing on a batch of pleas raising the issue of interest on instalments deferred under the scheme during the moratorium period, was told that paying interest on interest is a "double whammy" for borrowers.
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