public provident fund (ppf) vs mutual funds (mf) ppf vs mf 2018

I am showing you 12 years worth of analysis between PPF and Mutual Funds. 

If you invest 1,50,000 INR today then as per current interest rates and descreasing trend observed in PPF interest rates over the past few years due to inflation you might end up with approximately 3.1 lacs after 12 years. 

On the other hand if you invest same amount in Mutual Funds and assumed return in 3 years (ELSS scheme) is 15% plus or minus 5% then over the period of 12 years you will have approximately 2.6 lacs in hand. 

This analysis is as per current market treand and It does not claim any guarantee in genuinity of these numbers. 

Year	PPF				Mutual Funds
	investment	% rate of interest	amount		investment	% return	amount
1	150000.0	7.6	161400.0		150000	15	172500
2	161400.0	7.4	173343.6			0	172500
3	173343.6	7.2	185824.3			0	172500
4	185824.3	7	198832.0		172500	13	194925
5	198832.0	6.8	212352.6			0	194925
6	212352.6	6.6	226367.9			0	194925
7	226367.9	6.4	240855.4		194925	14	222214.5
8	240855.4	6.2	255788.5			0	222214.5
9	255788.5	6	271135.8			0	222214.5
10	271135.8	5.8	286861.7		222214.5	20	266657.4
11	286861.7	5.6	302925.9			0	266657.4
12	302925.9	5.4	319283.9			0	266657.4

As per my personal opinion and experience in long run I see better returns on investment in PPF over Mutual Funds.

Leave your comments for discussion. 

GTPL Hathway Ltd IPO - Open for subscription from 21st Jun'17 to 23rd Jun'17

GTPL Hathway Ltd IPO - Open for subscription from 21st Jun'17 to 23rd Jun'17

Company Profile
It is a leading regional MSO in India (Source: MPA Report), offering cable television and broadband services. It is the number 1 MSO in Gujarat with a market share of 67% of cable television subscribers in 2015, accounting for approximately 3.7 million of 5.6 million cable television households in Gujarat

Investor Category Allocation

QIB: 50% of the issue size (1,42,58,823Equity Shares*)

HNI: 15% of the issue size (42,77,647Equity Shares*)

Retail: 35% of the issue size (99,81,176Equity Shares*)

* upper price band

ISSUE STRUCTURE

Issuer
GTPL Hathway Limited

Issue Type
100% Book Built Issue IPO

Offer Period
Jun 21 - Jun 23, 2017

Issue Size (Rs)*:
Fresh issue of Rs. 240 crores. Offer for sale of 1,44,00,000 Equity Shares of Rs. 10

Price Band:
Rs. 167 – Rs. 170 per Equity Share

Listing:
NSE & BSE

CDSL IPO - Open for subscription from 19th Jun'17 to 21st Jun'17

Company Profile
Central Depository Services Ltd (CDSL) is one of the leading securities depository in India by incremental growth of Beneficial Owner (“BO”) accounts over the last three Fiscals and by the total number of registered Depository Participants (“DPs”), as at the end of Fiscal 2016, according to the CRISIL Report.

Investor Category Allocation

QIB: 50% of the issue size
(1,72,33,603 Shares)

Non Institutional Bidders: 15% of the issue size
(51,70,082 Shares)

Retail: 35% of the issue size
(1,20,63,523 Shares)

Employee Reservation:
7,00,000 Equity Shares

* lower price band
^ upper price band

ISSUE STRUCTURE

Issuer
Central Depository Services Ltd (CDSL)

Issue Type
100% Book Built Issue IPO

Offer Period
Jun 19 - Jun 21, 2017

Issue Size (Rs):
Offer for sale of 3,51,67,208 Equity Shares (Rs.509.92* Cr - 523.99^ Cr)

Price Band:
Rs. 145 - Rs. 149 per Equity Share

Bit Lot:
100 Shares and in multiples thereof

Listing:
NSE

Tejas Networks Limited IPO - Open for subscription from 14th Jun'17 to 16th Jun'17

ISSUE STRUCTURE

Issuer
Tejas Networks Limited

Issue Type
100% Book Built Issue IPO

Issue Size (Rs):
Equity Shares Aggregating up to Rs.450 Crores (“FRESH ISSUE”) and an offer for sale up to 12,711,605 Equity Shares.

Price Band:
Rs.250/- to Rs.257/- per Equity Share

Bit Lot:
55 Shares and in multiples thereafter

Listing:
BSE, NSE

Offer Opens on
Wednesday, June 14, 2017

Offer Closes on
Friday, June 16, 2017

Company Profile
Tejas Networks Limited is a India-based optical and data networking products company with customers in over 60 countries. It designs, develops and sells high-performance and cost-competitive products to telecommunications service providers, internet service providers, utility companies, defence companies and government entities (collectively, “Communication Service Providers”).

Investor Category Allocation

QIB: 75% of the issue size - At least 2,26,65,999 Equity Shares

HNI: 15% of the issue size 45,33,200 Equity Shares

Retail Individual Bidders: 10% of the issue size 30,22,133 Equity Shares

Stocks Reports

Stocks Report:

From the previous recommendations: see here

Assuming an investor would have participated in all the below mentioned recommendations, his/her investments would have made 1.52% (Annualized 18.22%) Return for the month of MAY, 2017 as against the BSE100 which generated return of 2.68% (Annualized 32.10%) for the month.

STOCK	ACTION	ENTRY*	AVERAGE	SL	TGT 1	TGT 2	CLOSING AS ON 31/05/2017	% RETURN	REMARK
AMBUJACEM	Buy	240.25	236	226	270	275	241.25	12.38%	First Target Achieved
ASIANPAINT	Buy	1133	1060	1020	1250	1275	1151.2	2.47%	Closed @ 1161
BHARATFORG	Buy	1148	1070	1028	1265	1300	1169.85	-7.30%	Stop Loss Triggered
HDFC	Buy	1555	1475	1415	1660	1690	1569.85	0.71%	Closed @1566
HINDALCO	Buy	200	186	180	220	225	200.7	4.66%	Closed @ 202
INFRATEL	Buy	355.5	340	329	381	398	366.6	7.17%	First Target Achieved
LT	Buy	1764	1625	1575	1925	1960	1760.7	0.57%	Closed @ 1774
RELINFRA	Buy	599	575	554	654	690	478.9	-5.62%	Stop Loss Triggered
SBIN	Buy	291.5	275	265	320	330	288.3	-1.03%	Closed @ 288.50
ZEEL	Buy	525	495	475	580	600	514.85	1.18%	Closed @ 516

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Stock of the day

Stock of the day:

STOCK	ACT	ENTRY	SL	TARGET
MINDTREE	BUY	535	450	675-700

stock market, bse india, nse india, investment, stocks of the day. 

India Grid Trust InvIT IPO

ISSUE STRUCTURE

Issuer
India Grid Trust InvIT IPO

Issue Type
100% Book Built Issue IPO

Issue Size (Rs):
Up to Rs. 2,250 crores.
Anchor Portion: Up to Rs. 1012.50 crores
Balance Institutional Size: Up to Rs. 675 crores
HNI Tranche: Rs. 562.50 crores

Price Band:
Rs.98/- to Rs.100/- per equity share

Bit Lot:
10,205 units and in multiples of 5,103 units thereafter

Listing:
BSE, NSE

Offer Opens on
Wednesday, May 17, 2017

Offer Closes on
Friday, May 19, 2017

Company Profile
India Grid Trust is an infrastructure investment trust (“InvIT”) established to own inter-state power transmission assets in India. IndiGrid was established on October 21, 2016 by the Sponsor, Sterlite Power Grid Ventures Limited, and is registered with SEBI pursuant to the InvIT Regulations.
The Sponsor is one of the leading independent power transmission companies operating in the private sector, with extensive experience in bidding, designing, financing, constructing and maintaining power transmission projects across India.

Investor Category Allocation
QIB: 75% of the issue size (16,87,50,000 units*)

HNI: 25% of the issue size(5,62,50,000 Units*)


(*upper price band)

Company Updates: Carborundum Universal Ltd, Navin Fluorine International Ltd, Zensar Technologies Ltd

Carborundum Universal Ltd
Industrials-Capital Goods

Valuation and Outlook:
Commissioning of capacities, higher volume off-take, pass-on of cost and congenial GST regime are triggers for the CUMI in the next 12-15 months period which could potentially improve RoCE profile to 20%-22% zone. Considering these triggers at CMP of Rs.296, CUMI is trading at 21.9x FY19E EPS of Rs13.5 and we value CUMI at 25.6x of FY19E EPS for an upwardly revised target price of Rs.346.

========================================================================

Navin Fluorine International Ltd
Materials-Basic & Diversified Chemicals

Valuation and Outlook:
I have introduced FY19E estimates this quarter, showing CAGR growth of 15.0% from FY17-19E. EBITDA margin pleasantly surprised us as it moved up by 384 bps YoY in FY17. The rise in EBITDA margin was due to focus on high margin business through innovation and better product mix. The company has low debt, high return ratios, paying regular dividend which reflect soundness of financial health of the company. At CMP of Rs.3056, NFIL is trading at 18.4x to FY19E EPS and we value it P/E 20.3x of FY19E EPS which gives upwardly revised target price of Rs.3387.

========================================================================

Zensar Technologies Ltd
Information Technology - Software & Services

Valuation and Outlook:
I continue to maintain a positive outlook on the company. The company has expanded its operations in the European and African markets wherein the geographical revenue contributions for FY17 grew by 35.7% and 11.6% respectively. With increase in contribution by digital in the business which grew from 30.0% in Q3FY17 to 34.1% in Q4FY17 and expectation of improvement in profit margins going forward, we value the company at 13.6x FY19E EPS and suggest a “HOLD” rating for a revised target price of Rs. 994.

Company Updates: SQS India BFSI Ltd, Eicher Motors Ltd

SQS India BFSI Ltd

Information Technology-Software & Services

Valuation and Outlook:

At CMP of Rs. 540, I assign P/Ex multiple of 19.0x to FY19E EPS on the back of benefit from SQS brand leverage, demand environment in BFSI, strong business presence in Europe, I continue to maintain my ‘BUY’ recommendation for a revised target of Rs. 631.


========================================================================


Eicher Motors Ltd

Industrials - Transportation Equipment - Commercial Vehicles

Valuation and Outlook:

I expect Royal Enfield sales to grow at 15.5% CAGR during FY17-19E driven by domestic dealership expansion and export growth as the company has indicated about adding ~100 dealers every financial year. Also, capacity expansion to 8,25,000 by August 2017 will help maintain the demand-supply balance.

Fundamental Company Update: Greaves Cotton Ltd

Greaves Cotton Ltd
Industrials - Capital Goods

Volume Pick-up and Easing Cost Pressures to Aid Growth
Greaves consolidated revenue (net) remained flat at 1.1% at Rs.16,344mn nevertheless consolidated EBITDA dropped by 9.0% to Rs.2,434mn which are however higher by 2.4% and 1.6% respectively than my full year FY17 estimates. In terms of volumes, for FY17 for 3 Wheelers engines reached to 270k, 4 Wheelers-30k, Power Gen-32k, Power Tillers-3.8k and Pumps-90k. Despite volume growth in other segments, drop in auto volumes was majorly due to demonetisation during the peak season and switch from BS3 to BS4 standards which came in with higher realisation aided flat revenues for FY17.

Revenues flat for FY17; Product mix contributes positively: Consolidated revenues for FY17 were flat at Rs.16,344mn and the same for Q4FY17 dropped by 3.4% to Rs.3,907mn. In terms of segments, Engines segment revenues (gross) were flat at Rs.17,565mn however, de-grew in Q4FY17 by 5.8% QoQ to Rs.4,123mn. Volume drop on YoY in the auto engines segment by 9.0%-10%, while volumes were higher by 60.0% for powergen, for tillers at 8.6% and for pumps at 12.5%.

Switch from BS3 to BS4 in the domestic market ushered in price hikes in the range of 8.0%-10.0% which aided for volume drop.

Margins were under pressure; expected to normalise going forward: Absolute EBITDA, EBIT and PAT came in at Rs.2,434mn, Rs.2,530mn and Rs.1,807mn which were lower by 9.0%, 14.9% and 10.1% respectively. Material margin dropped by 66bps due to material mix, inventory positions, higher staff costs and other costs dented margins further. EBITDA, EBIT and PAT margins were lower by 166bps, 291bps and 138bps to come in at 14.9%, 15.5% and 11.1% respectively.

Valuation and Outlook
Grevaes domestic market to turn robust with BS4 implementation apart from new product launches like Leap engines, new geographical presence, potential addition of customers, ‘Greaves Auto Care’-new service offering and fructification of R&D efforts for BS6 engines could all shape into FY18E, FY19E and beyond. We roll forward our valuation to FY19E estimates and revise our price target upwardly to Rs.203.

IPO of the week (HUDCO)

Company Profile
HUDCO is a wholly-owned Government company with more than 46 years” experience in providing loans for housing and urban infrastructure projects in India. I have been conferred the status of Miniratna (Category-I Public Sector Enterprise) by the GoI.

Its housing finance loans are classified into socialhousing, residential real estate and retail finance, which is branded as HUDCO Niwas (collectively, “Housing Finance”)

Investor Category Allocation
QIB*: At least 50% of the issue size (100,095,000 Equity Shares)

HNI*: Up to 15% of the issue size (30,028,500 Equity Shares)

Retail Individual Bidders*: Up to 35% of the issue size (70,066,500 Equity Shares)

* Upper Band

Offer Opens on
Monday, May 08, 2017

Offer Closes on
Thursday, May 11, 2017



ISSUE STRUCTURE

Issuer
Housing and Urban Development Corporation Ltd (HUDCO)

Issue Type
100% Book Built Issue IPO

Issue Size (Rs):
Equity Shares Aggregating up to Rs. 1209.57 Crs and Employee Reservation up to 38, 68,747 shares aggregating up to Rs. 22.44 Crs.

Face Value:
Rs.10 per Equity Share

Price Band:
Rs.50 - Rs.60 per Equity Share

Minimum Order Quantity Retail:
200 Equity Shares

Maximum Bid amount for Retail:
Rs. 2 Lakhs

Listing:
BSE, NSE

Stocks to look for the week

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Smart Trader is a weekly product from US, with 8 stock recommendations to help you take Long/Short Positions based on the swing movement in F&O. The stock selection is based on Technical and Derivative parameters.

STOCK	SECTOR	CMP	ACTION	ENTRY*	SL	TGT
ADANIPORTS	INFRA	345.1	BUY	342	328	363
LT	CG	1733.45	BUY	1732	1690	1795
MINDTREE	SOFTWARE	499.15	BUY	498	485	520
PFC	UTILITIES	162.7	BUY	162	158	169
AJANTPHARM	PHARMA	1644.9	SELL	1656	1720	1560
JUSTDIAL	SOFTWARE	490.7	SELL	495	515	465
MCDOWELL-N	FMCG	1900.65	SELL	BLW 1890	2010	1710
SAIL	METAL	60.1	SELL	60.5	63	55

*Refers to (if any call is not initated,entry levels for the recommendations(s) will be sent on the trading terminals) (CMP: Currrent Market Price |SL: Stoploss| TGT: Target)