Stock talks 💡
💸 The RBI has not found any divergence in the asset classification and provisioning done by Yes Bank in 2017-18. A big positive for the bank. Buy.
🏭 GAIL (India) posted a higher EPS of Rs.7.5 for Q3FY19 v/s Rs.5.6 for Q3FY18. Buy.
🛢 Ultramarine & Pigments continues to report higher revenues this quarter. Its 9MFY19 earnings have already crossed FY18 earnings. Accumulate.
🚆 With railway revenues expected to grow by about Rs.20000 crore, infra spending is likely to pick pace. Buy Texmaco Rail Engineering, Bharat Heavy Electricals, Ircon International and Titagarh Wagons.
💡 Bajaj Electricals is back on the fast track with 73% higher PAT for Q3. Buy.
🏗 Oberoi Realty, which recently raised Rs.1200 crore via a QIP, utilised the funds to buy large land parcels at bargain prices. Buy for about 40% returns within a year.
⚙ Tata Steel posted 54% higher consolidated PAT for Q3 at Rs.1753 crore. A worthy buy.
💻 Rolta India has lost half its net worth in the last one month alone. It makes a good contrarian bet at less than Rs.4/share. The stock’s 52 week high is Rs.80.
🚜 Market participants seem to have ignored the good set of numbers posted by Mahindra & Mahindra for Q3 given its big expansion plans, farmer-supportive interim budget and increase in rural spending, all these factors make this stock an excellent buy.
🛢 Very few stocks have held firm in the current volatile markets and Indian Oil Corporation is one such share.
Accumulate.
🍾 Radico Khaitan posted 49% higher PAT for Q3 and is likely to launch new products. Accumulate.
🏗 The cement boom is around the corner. J.K. Lakshmi Cement posted 72% higher PAT for Q3 on 12% higher income. Buy.
🛵 Gujarat-based Atul Auto posted a good set of numbers for Q3. Its 9MFY19 earnings are almost equal to its FY18 earnings. With improving fundamentals, its prospects look good. Buy.
🛬 Spice Jet’s Q3 PAT has fallen sharply by 77% in spite of a spurt in revenues. Sell immediately.
🏥 Apollo Hospitals Enterprise has crashed on the back of pledged shares worries. Sell immediately to avoid further losses.
🛳 Great Eastern Shipping posted 3x higher PAT at Rs.299 crore. Its prospects look good. Buy.
💸 Corporation Bank has finally turned around with Rs.60.5 crore PAT for Q3 v/s a loss of Rs.1240.5 crore in the previous corresponding quarter. A good contrarian buy at the current beaten down level.
🕳 Coal India posted 50% higher PAT of Rs.4567 crore and declared an interim dividend of Rs.9. Accumulate.
🏭 Godrej Industries Q3 PAT doubled to Rs.121.28 crore. Buy with a two-year perspective.
🏨 Financially stressed Hotel Leela Venture seems to have come out of its woes. Buy for the long term.
⛓ L&T Hydrocarbon, a subsidiary of Larsen & Toubro (L&T), has obtained a Rs.7700 crore worth order from Algerias Sonatrach for setting up 3 central processing facilities. Buy L&T.
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ICAI has issued Educational Material on Indian Accounting Standard (Ind AS) 111, Joint Arrangements on 12th Feb 2019.
This Educational Material on Ind AS 111, Joint Arrangements will provide guidance to the stakeholders in how an entity that is a party to a joint arrangement to determine the type of joint arrangement by assessing its rights and obligations and to account for those rights and obligations in accordance with that type of joint arrangement.
This Educational Material contains summary of Ind AS 111 discussing the key requirements of the Standards and the Frequently Asked Questions (FAQs) and illustrations covering the issues, which are expected to be encountered frequently while implementing these Standards.
Relevant link to download the Educational Material:
https://resource.cdn.icai.org/54124indas43413.pdf
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GST Legal updates:
1. Haryana AAR- Time of supply- In case of invoices being raised by supplier in previous month and goods being received in the succeeding month, input tax credit on goods so received shall be available to the applicant, only when applicant has received the goods.
2019-VIL-40-AAR
2. Bogus billing- There are justifiable grounds to arrest the petitioners under Section 69 of the CGST Act which involves evasion of more than Rs. 80 crores of tax and offence is punishable with imprisonment for a period of five years. There is no valid ground to grant benefit of regular bail to the petitioners. The present petition is dismissed.
2019-VIL-67-P&H
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ITax update-
Employees of statutory corporations cannot be regarded as employees of State or Central Government for Section 10(10AA) of Income Tax Act, 1961 exemption held by THE ITAT BANGALORE BENCH 'A' in the case of Income-tax Officer (OSD) (TDS), Large Tax Payer Unit (LTU), Bangalore v.Karnataka Power Transmission Corpn. Ltd.