Tag: 上海千花上海品茶网PB

Electronics Mart India IPO opens on Tuesday, GMP rises; should you subscribe?

Posted on by

Electronics Mart India Ltd’s (EMIL) Rs 500 crore-IPO will open for public subscription on Tuesday (4 October) and will conclude on 7 October. The price band for the issue has been fixed at Rs 56-59 per share. The consumer durables retail chain’s IPO consists of a fresh issue of equity shares aggregating to Rs 500 crore, with no offer for sale (OFS) component. The company intends to utilise the net proceeds from the initial share sale to fund its capital expenditure, and support incremental working capital requirements. The proceeds will also go towards paying debt, and for general corporate purposes. Ahead of the IPO opening, Electronics Mart India shares were commanding a grey market premium (GMP) of Rs 33 per share.

Also Read: Nifty must hold above 17017 for upmove towards 17250; buy, sell these stocks to pocket gains

Angel One: Subscribe

“In terms of valuations, the post-issue P/E works out to 21.8x FY22 EPS (at the upper end of the issue price band) which is low compared to its peer Aditya Vision Ltd. Further, EMIL has better revenue growth (CAGR of 17%) over 2 years, better return on equity and an expansion plan on the cards. Considering all the positive factors, we believe this valuation is at reasonable levels. Thus, we recommend a SUBSCRIBE rating on the issue,” the brokerage said.

Nirmal Bang: Subscribe

“Being the 4th largest consumer durable and electronics retailer in India and the largest in South India, EMI enjoys favorable terms of pricing/margins from brands due to its scale – this is a key advantage. EMI has demonstrated superior performance among all major consumer durable and electronics retailers in India in terms of growth with revenue CAGR of 26% over FY15-20 (pre-covid) and also managed to deliver respectable ROE of 17.4% during the covid impacted year of FY22. We believe EMI is being offered at attractive valuations at PE of 21.8x FY22 & EV/EBITDA of 9.7x FY22. We recommend subscribing to the issue,” Nirmal Bang analysts said in a note.

Choice Broking: Subscribe

“Peer comparison and valuation: At the higher price band, EMIL is demanding an EV/Sales multiple of 0.7x, which is lower than the above peer average. Considering the expected growth in the business, we feel the IPO is attractively priced. Thus we assign a “SUBSCRIBE” rating for the issue,” Choice Broking said in a note.

Also Read: Rupee likely to consolidate in near-term, may fall to 83 level, if 82 breached amid global uncertainty

Hem Securities: Subscribe

“Company is bringing the issue at a price band of Rs 56-59 per share at p/e multiple of 17x on post issue FY22 PAT basis. The company is the 4th largest consumer durable and electronics retailer in India with a leadership position in South India. Company’s scale of operations along with its long-standing relationship with leading consumer brands enables it to procure products at competitive rates. The company being one of the fastest growing consumer durable and electronics retailers with a consistent track record of growth and industry-leading profitability has a business model that provides operational flexibility to create a long-term sustainable footprint. Hence, looking at all the above, we recommend “Subscribe” on the issue.” Hem Securities said in a note.

(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.)

Global bond funds see biggest outflows in two decades

Posted on by

Global bond funds saw the biggest outflows in two decades in the first three quarters of this year as hefty interest rate increases by central banks to tame inflation sparked fears of a recession.

According to Refinitiv Lipper, global bond funds faced a cumulative outflow of $175.5 billion in the first nine months of this year, the first net sales in that period since 2002.

Governments and companies have borrowed heavily in the past few years, taking advantage of ultra-low interest rates, and they now stare at bigger interest liabilities due to a rise in yields.

Also Read: Global Markets: Dust settles on stocks surge, OPEC+ talks supply cuts

“The combination of high debt levels and a rise in interest rates has reduced investors’ confidence in the government’s ability to pay back debt, which has resulted in the massive outflows we are seeing,” said Jacob Sansbury, CEO at Pluto Investing.

He added that outflows from bond funds might continue into 2023, as a reduction in interest rates and reduced debt loads are unlikely.

Emerging market bonds faced an outflow of about $80 billion in the first three quarters of this year, while U.S. high yield bonds and inflation-linked bonds witnessed net sales of $65.81 billion and $16.44 billion, respectively.

The iShares UK Gilts All Stocks Index (UK) D Acc recorded outflows of $6.67 billion in the last quarter, while the ILF GBP Liquidity Plus Class 2 and Vanguard U.K. Short Term Investment Grade Bond Index GBP Acc fund saw withdrawals of $2.16 billion and $993 million respectively.

BONDS ATTRACTIVE NOWHowever, some funds managers said bonds looked attractive after the slump this year.

The ICE BoFA U.S. Treasury Index has fallen 13.5% so far this year, while the Bloomberg Global Aggregate Bond Index has shed about 20%.

“The yield cushion now protects the investor against negative total returns significantly more than it did at the beginning of the year,” said Jake Remley, portfolio manager at Income Research + Management.

“This almost certainly makes the prospects for bonds better between now and year-end, even if interest rates continue to rise as briskly as they have over the past 9 months.”

The yields on 2-year and 10-year U.S. Treasury bonds stood around 4.12% and 3.68% respectively on Wednesday, compared with 0.7% and 1.5% at the start of the year.

Similarly, the yield on the ICE BofA U.S. High Yield index , the commonly used benchmark for the junk bond market, stood at 9%, compared with 4.3% at the start of the year.

“Some bonds have become the proverbial ‘babies thrown out with the bathwater’ and offer compelling value at these levels,” said Ryan O’Malley, portfolio manager at Sage Advisory Services.

“However, it’s important to note that there will likely be further credit stress in many corners of the bond market and risk management is paramount in these uncertain times.”