stocks

March Madness – The Dividend Bonanza: As of 21st March

by Paul Joseph March 21, 2016 Featured

Ever since the Finance Ministry announced Taxation of Dividends Received (Above INR 10 lakh) in the Budget 2016, companies have been lining up furiously to reward their share-holders before April 01. This is the date from which any Individual or HUF receiving dividends greater than INR 10 lakh, would have to pay 10% Dividend Distribution Tax. Read our short post on the  Introduction of Dividend Distribution Tax . As a result, there has been a slew of corporate board meetings as companies scramble to figure out how much they should distribute to share-holders, while keeping in mind, the deadline of March 31. Keep in mind, this is mainly for the benefit of Promoters and Big Individuals, likely to receive more than INR 10 lakh on account of their ownership positions,  who would want to take the cash now rather than after April. These investors are the ones generally who take home a lion’s share of the dividend and they do not like to share this extra topping with the government.… (Read On…)

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March Madness – The Dividend Bonanza: As of 15th March

by Paul Joseph March 15, 2016 Featured

    Ever since the Finance Ministry announced Taxation of Dividends Received (Above INR 10 lakh) in the Budget 2016, companies have been lining up furiously to reward their share-holders before April 01. This is the date from which any Individual or HUF receiving dividends greater than INR 10 lakh, would have to pay 10% Dividend Distribution Tax. Read our short post on the  Introduction of Dividend Distribution Tax . As a result, there has been a slew of corporate board meetings as companies scramble to figure out how much they should distribute to share-holders, while keeping in mind, the deadline of March 31. Keep in mind, this is mainly for the benefit of Promoters and Big Individuals, likely to receive more than INR 10 lakh on account of their ownership positions,  who would want to take the cash now rather than after April. These investors are the ones generally who take home a lion’s share of the dividend and they do not like to share this extra topping with the government. … (Read On…)

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Tracking The Truckload of Interim Dividends in March to avoid the Dividend Tax in April

by Paul Joseph March 9, 2016 Featured

Over the last few days, there has been a wave of Corporate Actions (Board Meetings) as every company rushes in to consider payment of dividends. Why?  During the Budget 2016 , the Finance Minister Arun Jaitley outsmarted the best of corporate world with the Introduction of Dividend Distribution Tax .  Here is a short post on this along with the other Budget 2016 articles .  Basically, anyone getting more than Rs. 10 lakh in dividends from April 2016 has to pay 10% of those dividends as tax. That doesn’t apply till then.  But in the process, the Finance Minister Arun Jaitley has unknowingly provided the corporate world a honeymoon period of 32 days (since the announcement of budget on the 29-Feb until the 1-April when the rule would be in effect) wherein they can move ahead the future planned dividends to be declared. Why does it matter? Look back at the holdings of Promoters and Big Individuals who would want to take the cash now rather than after April.… (Read On…)

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Five Reasons Why Indigo Shares Crashed 25% in Two Days

by Paul Joseph January 27, 2016 Featured

Indigo’s stock has fallen over 25% in two days. While I’ve been very appreciative of the aviation business and Indigo in particular, this is time to take stock. And we have been long at Capital Mind Premium, though we were out at 1160 due to a trailing stop loss. But the stock fell from the 1200 levels to 900! What happened? (Note: this is not a stock recommendation; it’s merely news and opinion) Our top 5 potential reasons – mostly after the fact, so there wasn’t a way to predict it – but these seem to have impacted it the most. Please do understand that reasons always “follow” a stock move, and any attempts to explain it should be taken with a pinch of salt. Who knows, even worse news may be ahead! Note: The stock is up 4% as we write this, so some of the fall has been tempered.… (Read On…)

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Company Notes: Maruti Suzuki

by Paul Joseph January 24, 2016 Featured

Maruti – the family name of the 90’s is India’s leading passenger vehicle company and formerly known as Maruti Udyog Limited, is a subsidiary of Japanese automobile and motorcycle manufacturer Suzuki. The company has come a lot far from its initial production of the Maruti 800, based on the Suzuki Alto kei car to the latest Premium Hatchback Baleno. Total Investment in the Baleno Model stood at 1100 crore between Maruti and its Vendors. As of 27-Oct-15, the company had received 2500 confirmed bookings and an additional 600 new bookings after the price of the vehicle was disclosed. In February 2012, Maruti Suzuki sold its ten millionth vehicle in India and in May 2015 Maruti Suzuki rolled out its 15 millionth vehicle – a DZire VDi (Chassis No. MA3FJEB1S00740865). The first car, a Maruti 800, had rolled out from the Gurgaon facility in December 1983. The Company has achieved this milestone in 31 years and 5 months.… (Read On…)

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2015 in Review: The Top 10 Mid Cap Performers of the Year!

by Paul Joseph January 8, 2016 Featured

Earlier this week, we had analysed the best performing Large Cap stocks (some of whom had returned more than 100% this calendar year!). Continuing from where we left off, we are looking at those Mid Cap stocks that have outperformed their peers this year; and boy, are there plenty of those! What a topsy-turvy year 2015 has turned out to be for the markets! The Nifty and Sensex had been beaten down, falling by 4.5% and 5.0% resp. Related Links: For all You Investors: As 2015 Ends, we Usher in 2016 with Notes of Optimism and Caution Alike 2015 in Review: Let’s Put Inflation into Play and Watch What Happens to the 2015 Nifty Levels 2015 in Review: Sector Moves; Which Industries Beat the Market and Which All Struggled The Nifty Midcap 50 is an Index of stocks that have an “Average Free Float Market Cap” between Rs. 1,000 cr. and Rs.… (Read On…)

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2015 in Review: The Top 10 Large Cap Performers of the Year!

by Paul Joseph January 7, 2016 Featured

As part of our year-end special pieces, we will be analyzing the markets to identify those companies that have done exceedingly well over the last 12 months (ending Dec 31, 2015). As part of this series, in this post, we will talk about the performance of the Large Caps in this market. The Nifty has taken a severe beating this year, and as of now, is 5.1% down for the year! However, there are several Large Cap companies that have not only beaten the Nifty, but have contrived to give their investors some absolutely smashing returns this past year! 1) Rajesh Exports Wow. What a year it has been for Rajesh Exports. The company’s stock has shot up over 379% from its opening 2015 levels! Pretty monstrous rise, considering the Nifty has moved down 5.1% this calendar year. Why did the stock perform so well? At first look, it seems pretty evident why; their most recent Q2 FY16 earnings report (September 2015) showed that quarterly sales was at Rs. … (Read On…)

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Dr. Reddy’s stock tank – Here is a breakup of what happened

by Paul Joseph November 16, 2015 Featured

Dr. Reddy’s Lab   tanked on Friday and then again today, after news came out that involved US action against the company. The stock has been in news for 2 different reasons: On Friday , USFDA (Food & Drug Administration) issued a warning letter in relation to the for the inspection performed API manufacturing facilities at Srikakulam , Andhra Pradesh and Miryalaguda , Telangana, as well as the Oncology Formulation manufacturing facility at Duvvada , Visakhapatnam, Andhra Pradesh. This is following the issuance of Form 483 containing the observations made during the earlier site inspections and the subsequent remediation plans submitted by Dr. Reddy’s. On Tuesday, the District Court of Delaware , USA granted in favour of Astra Zeneca and issued a Temporary Restraining Order for the sale, delivery, transfer or other disposition of its generic esomeprazole capsules (which reduces stomach acid secretion) in the US market.  AstraZeneca happens to be the manufacturer of  Nexium which is similar to Dr. … (Read On…)

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Premium: Sun TV’s Buyback Likely To Be A Tender Offer, Promoters Likely To Take Out Cash

by Paul Joseph November 3, 2015 Featured

Note: This post was sent to  Capital Mind Premium subscribers on 02 Nov, but we’ve made it open for everyone. Do take a look! SUN TV is going to meet for a buyback offer , probably soon. But there is a fundamental problem in a buyback: The promoter, Kalanidhi Maran, already owns 75% in the company, the max promoter holding allowed by SEBI. (From SunTV on Snap ) The stock is at Rs. 400, so the market cap is Rs. 16,000 cr. How Much Can They Buy Back? In India, a company isn’t allowed to take debt in order to buy back shares, and while Sun TV is debt free, they can’t get cash to do the buyback. The cash on the books, according to the company’s press release, is Rs. 735 cr. and they have an additional 867 cr. in receivables. There’s Rs. 162 cr. in current investments (mostly mutual funds) which seems to have fallen in the last six months.… (Read On…)

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Vedanta to Merge With Cairn, Gets Hands on Cash, Takes Retro-Tax Risk

by Paul Joseph June 15, 2015 Featured

Cairn and Vedanta will merge soon, says a Vedanta Board Meeting note, where Cairn shareholders will get: One share of Vedanta for a share of Cairn A preference share of Vedanta worth Rs. 10 for every share owned, which pays 7.5% dividend per year and pays it out at the end of each financial year. And that’s pretty much it. When? Sit back and relax. Sometime in the March 2016 quarter. That is approximately the time of the next Greece drama, so I would not suggest immediate outrage. Though honestly I am a terrible person to be in the media business because there is no such thing as premature outrage in the media business. But we couldn’t resist. So although the timelines are way out, the contours of the deal’s currently proposed structure is known. Not So Great for Cairn Shareholders There’s two reasons why Cairn shareholders will not be rejoicing.… (Read On…)

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