1. Amazing Tax Revenues.
a. The central government has announced a growth of 47% in gross direct tax collection for Financial Year 2022, so far and a 74% growth in net direct tax collections this Financial Year, so far. The average monthly GST collection is Rs.1.15 trillion for the second quarter. The advance tax collection has also seen a 56% growth.
b. The gross direct tax collection was Rs 6.46 trillion for the first half of the current financial year and the net of refunds tax collection was Rs. 5.7 trillion for the first half of the current financial year. Advance tax collection stood at Rs.2,53,353 crores as of September 2021.
c. The GST collection grew to Rs.1.17 trillion in September 2021. The same was Rs.1.16 trillion in July 2021 and 1.12 trillion in August 2021.
d. Recovery in most sectors after the second wave of covid and implementation of effective compliance measures has led to favorable tax collections. The upcoming festive season may help to keep up with the growth.
2. E-Commerce Reign.
a. The recent pandemic has accelerated the growth of e-commerce industry in India and the e-commerce biz is set to grow by 84% to $111 billion by 2024. The southeast Asian region is on its way to record an annual growth of 22%, reaching $146 billion by 2025.
b. The average time spent online in India was 4.9 hours a day before lockdown and 6.9 hours a day during lockdown. Currently, an average Indian is spending 5.2 hours a day online.
c. Shopping app installs in India showed a strong year on year growth in July and August 2020, and remained above 2019 levels into 2021. Shopping app installs increased in July 2021, exceeding 80 million that month, up more than 15 million month-on-month. Meesho alone contributed more than 12 million downloads, up 3.7 million month-on-month.
3. TATA Motors DVR; a feasible substitute for TATA Motors.
a. Investors interested in purchasing TATA Motors shares can consider purchasing the TATA Motors DVR shares given the attractive discount in its price. TATA Motors share is trading at Rs.520 whereas the DVR shares are trading at Rs.266, a gap of 48%.
b. For the naïve, DVRs carry lower voting rights (10 DVRs have voting rights of one ordinary share) but offer higher dividends (10-20% extra to compensate for the lower voting rights).
c. A host of good news and a strong business outlook can lead to multiple re-rating for the stock. The spread can again contract back to usual level of 35%.
4. Crores at stake in Airtel’s Right Issue.
a. Several retail investors have purchased the Rights Entitlement (RE) of Bharti Airtel with a motive to trade them. However, the trading window is closed and the option of exercising those rights is open. If a person who has purchased the REs for subscribing to the Right shares doesn’t apply for the Right shares before 21st October 2021, the rights will lapse.
b. The cost of one right entitlement was approximately Rs.200 and cumulatively rights worth several crores are purchased. Those who have purchased the right entitlement run the risk of loosing them if they fail to exercise them.
c. Further, Singtel and Mittal family, the promoters of Bharti Airtel need to jointly invest Rs.11,730 crores in the rights issue based on their shareholdings.
d. To know more on the rights issue please watch my video on Bharti Airtel Rights Entitlement.
5.Chennai Super Kings set to become Sports Unicorn?
a. M S Dhoni led IPL team Chennai Super Kings may be all set to become possibly the country’s first ‘sports unicorn’. The franchise may surpass its parent India Cements in market capitalization.
b. The unlisted shares of India Cements were trading at around Rs.80 each, taking its market capitalization to around Rs.2,645 crores in April 2021. This increased to Rs 135 per share and Rs 4,200 crore market capitalization after CSK’s victory in the tournament. The listed shares of India Cements are trading at Rs.218 per share with a market cap of Rs6,644 crores.
c. The unofficial price of CSK’s shares is around Rs.135 per share. This price may increase to Rs.200 per share, provided the two new teams (Ahmedabad and Kanpur/Lucknow) are valued at Rs.4000-5000 crores. With a share price of Rs.200 per share, the CSK franchise will be valued at Rs.8,000 crores making it a sports unicorn.
6.Ultratech Cement Q2 Results Update.
a. Consolidated Revenue for July 2021 to September 2021 = 12,156.83 crore. Consolidated Revenue for July 2020 to September 2020 = 10,522.12 crore. Percent Increase = 15.54Profit for July 2021 to September 2021 = 1,310.34 crore. Profit for July 2020 to September 2020 = 1,167.15 crore. Percent Increase = 12.26
b. Consolidated Revenue for July 2021 to September 2021 = 12,156.83 crore. Consolidated Revenue for April 2021 to June 2021 = 12,034.71 crore. Percent Increase = 1.01Profit for July 2021 to September 2021 = 1,310.34 crore. Profit for April 2021 to June 2021 = 1,700.03 crore. Percent Increase = -22.92% .
Disclaimer: - The share prices and other values mentioned in the news blog are those when the blog was being prepared.