Value Research

Tata Consultancy Services  (TCS), the country’s largest software company and also the most valuable company with market capitalization of Rs 4.86 lakh crore. The stock is currently offering a dividend yield of 3.2% based on dividend of Rs 79 per share paid for the financial year ended 31 March 2015 (FY 2015). The dividend is on the higher side owing to the special dividend of Rs 40 paid last fiscal. Sans the special dividend, the dividend yield works out to mere 1.6% considering the dividend per share (DPS) of Rs 39. What is the point in investing in TCS for such pathetic dividend yield? This will be the obvious question popping up in the minds of investors. Now if one digs a little bit deeper, what emerges is the fact that it makes tremendous sense to invest in TCS. Here is the hidden story. The software company came out with an initial public offering (IPO) in August 2004. The shares were offered at Rs 850 per share. In mere two years after listing, the company issued bonus s...

Hyderabad-based  VST Industries  is popular with mutual funds, which held 8.58% stake end June 2015. The business comprises cigarettes and unmanufactured tobacco. Presence is largely in the value or affordable segment, with brands such as Moments, Special and Charms. Discriminatory and exponential excise hike on 64-mm cigarette in FY 2015 adversely affected the sales volume, which declined 6.9% to 7,540 million pieces. The UK-based British American Tobacco owns 32.16% stake, with a representative on board. There is no debt on the balance sheet, with current investment of Rs 171.2 crore and cash of Rs 42 crore. NRB Bearings  is another stock popular with the institutional investors. Mutual funds held 15.42% stake end June 2015. Incorporated in 1965, the leading manufacturer of ball and roller bearings commands a market share of around 13% in the domestic organized sector. The three subsidiaries are SNL Bearings, NRB Bearings (Thailand) and NRB Bearings Europe GmbH. ...

An equity analyst tracking metals and steel sector cautions  against the bullish reports being published by a couple of bro- kerage houses for JSW Steel. No doubt this leading steel com- pany is well managed, but the analyst opines that the steel in- dustry is still facing several challenges globally, and it may take  several years to r ecover. In these circumstances, the chances of the scrip crossing Rs. 1200-mark appear to be remote. Little  wonder, in the second quarter of FY 16, the company’s sales have come down by 21.5 per cent to Rs. 10,743 crore as com- pared to Rs. 13,692 crore in the corresponding quarter last year  and the profit at net level has nosedived from Rs 749 crore to Rs  118 crore, a drop of 84.2 per cent. The second quarter results  would have been worse but for the good show by a couple of  overseas subsidiaries. The disastrous economic meltdown in  China will not allow the steel industry to stage a recovery for 6 to...

Axis Bank announces financial results for the Quarter and Half -  Year Ended 30th Sept. 2015 Results at a Glance :- " Net Profit for Q2FY16 and H1FY16 grew 19% YOY to `1,916 crores and `3,894 crores respectively " The Bank's Retail franchise continued to perform well CASA, on a daily average basis for Q2FY16, grew 14% YOY and constitutes 40% of Total Deposits Retail Term Deposits grew 18% YOY and constitutes 64% of Term Deposits, CASA and Retail Term Deposits constitutes 80% of Total Deposits, Retail Advances growth continues to be strong at 27% YOY and accounts for 40% of Net Advances Retail Fee Income in Q2FY16 grew 19% YOY and constitutes 40% of Total Fee Income " Asset Quality is healthy with Net NPAs at 0.48% " The Bank is well capitalised with a healthy Capital Adequacy Ratio (CAR). Under Basel III, Total CAR & Tier I CAR (including the net profit for H1FY16) stood at 15.42% and 12.21% respectively