Month: December 2022

Reliance share price gains 1%, Mukesh Ambani’s RIL to acquire Shubhalakshmi Polyesters for Rs 1592 cr

Posted on by

Shares of Reliance Industries gained nearly 1 per cent in morning trade on Monday after the company announced the acquisition of polyester chips and yarn manufacturer Shubhalakshmi Polyesters Ltd for Rs 1,592 crore. On September 10, Reliance Industries said the acquisition is part of the strategy to expand its downstream polyester business.

Shares of the company opened at Rs 2573.70, then gained 0.98 per cent to touch Rs 2593.80 apiece on the BSE. Similar movement was seen on the NSE where the company’s shares opened at Rs 2,570.55, then touched Rs 2,591.60, higher by 0.87 per cent over its last close.

“Reliance Petroleum Retail Ltd (under name change to ‘Reliance Polyester Ltd’), a wholly-owned subsidiary of the company, today executed definitive documents to acquire polyester business of Shubhalakshmi Polyesters Ltd and Shubhlaxmi Polytex Ltd for cash consideration of Rs 1,522 crore and Rs 70 crore respectively, aggregating to Rs 1,592 crore by way of slump sale on a going concern basis,” the firm had said.

Also read| Reliance acquires Shubhalakshmi Polyesters, SPTex

The acquisition will strengthen the textile manufacturing business of Reliance Industries.

Jubilant Foodworks under pressure; Should you buy, hold or sell the stock?

Posted on by

The share price of Jubilant Foodworks, which operates Domino’s restaurants in India tanked 6.39% to Rs 495.25, a day after the company posted second-quarter profit at Rs 97.20 crore, down 26.1% in comparison to Rs 131.53 crore during the second quarter of FY23. It posted revenue from operations at Rs 1,368.63 crore, up 5.2% as against Rs 1,301.49 crore during the corresponding quarter of last year.

Jubilant FoodWorks’ stock price fell 4% in the last five days and 7.44% in the last one month, while it gained 13.71% in the last six months and marginally 0.05% year to date.

Nuvama Wealth: Hold – Target Price: 541

“We are downgrading Jubilant FoodWorks (JFL) to ‘Hold’ as the recent run-up does not dovetail with its performance. In fact, we are adjusting down FY24E/25E EBITDA by 5%/5%, factoring in the performance despite building in a robust LFL showing in Q3FY24 (7%). Longer term, JFL is targeting LFL of 5–6%. We ascribe the stock a PE of 50x, similar to its five-year pre-covid average (FY15–19 average SSSG/revenue CAGR of 6%/15% versus FY24–26E’s 4%/11%), and value Popeyes’ separately. This yields a Target Price of Rs 541 (Rs 549 earlier).”

Centrum Broking: Buy – Target Price: Rs 625

“Jubilant Foodworks in its rejuvenated approach to drive growth through portfolio expansion in Domino’s and chicken QSR segment (Popeyes), coupled with enhanced consumer experience in value segment and by reimaging store could achieve mid-single digit LFL growth. Though weak demand, incremental competition in pizza QSR, and rising inflation pose short-term challenges, we expect JUBI to defend its current margin. We cut FY24E/ FY25E earning by 6.5%/3.0% and introduce FY26E estimates and retain ‘Buy’ with a revised DCF-based Target Price of Rs 625 (implying EV/EBITDA of 20.0x avg. FY25E/FY26E). Key risks to our call prolonged weakness in demand, rising inflation in key RM/PM & severe competition in chicken portfolio from peers.”

(The recommendations in this story are by the respective research analysts and brokerage firms. FinancialExpress.com does not bear any responsibility for their investment advice. Capital markets investments are subject to rules and regulations. Please consult your investment advisor before investing.)

Review windfall tax on crude, says Oil ministry

Posted on by

State-run ONGC and private sector firm Cairn are likely to benefit if the finance ministry accepts a proposal by the oil ministry to exempt hydrocarbon blocks, which were bid out to companies under the production-sharing contract (PSC) and revenue-sharing contract (RSC) mechanisms, from the windfall taxes on domestic crude. 

Agencies reported that the oil ministry argued that since these contracts, which have been awarded sine 1990s, have an in-built mechanism, whereby high prices as incremental gains get transferred in the form of higher profit share for the government, the one-off tax could be waived in such cases.

As for these blocks, royalty and cess is levied and the government gets a pre-determined percentage of profits.

The government has so far signed PSC contracts for more than 300 blocks and around 100 contracts under RSC.

While ONGC has so far got 31 PSC blocks and 58 RSCs under different contractual regimes, Cairn has got five PSC blocks and 62 RSC blocks.

On July 1, the Centre imposed special additional excise duty of Rs 23,250/tonne on crude and export taxes on petrol, diesel and ATF at Rs 6/litre, Rs 13/litre and Rs 6/litre, respectively. The tax on petrol was removed subsequently.

Also Read: ONGC wants govt to scrap windfall tax, USD 10 gas price 

The government’s rationale for introducing these taxes is to lay its hands on a chunk of the “windfall profits” reaped by some of the domestic firms, on the back of elevated global oil prices. The move is also aimed at addressing the crunch in the domestic fuel market, as private refiners neglected supplies to domestic retail outlets while tapping the highly remunerative export markets.

However, since then the government has reviewed the new tax for five times. In the fifth revision last week, the government slashed the windfall tax on domestic crude by 21% to Rs 10,500/tonne. It also cut the special levy on export of diesel by 26% to Rs 10/litre and trimmed the tax on jet fuel shipments by a steeper 44% to Rs 5/litre. In the fourth review on August 31, the government had raised the windfall taxes with the exports of diesel attracting a tax of Rs 13.5/litre, up from Rs 7 previously. Similarly, shipments of ATF were subjected to an impost of Rs 9/litre, up from Rs 2. The government has also raised the tax on domestically produced crude oil to Rs 13,300/tonne from Rs 13,000.

Mahindra Lifespaces introduces home buying experience on the Metaverse

Posted on by

According to an official release, Mahindra Lifespace Developers Limited (MLDL), a real estate and infrastructure development arm of the Mahindra Group, introduced India’s first home-buying experience on the Metaverse with the launch of Bastion at Mahindra Citadel, which is Phase 2 of the project. This is expected to culminate in a QR code in the skies of Pune, which led the audience to the Metaverse experience.

The project is expected to have been launched at Pimpri-Chinchwad, with drones showing visuals of ecotone design, home automation features and unveiling of the Metaverse experience. It is believed users can also interact with elements within the homes and design interiors to their liking.

Follow us onTwitter,Facebook,LinkedIn