IOL Chemicals: Why a Company Trading at a P/E Ratio of 3 Is Not 'Cheap'
IOL Chemicals has delivered phenomenal performance over the past few years. Profits increased from Rs5 crore in 2017 to Rs237 crore in 2019, a rise of over 47 times in two years! This came on the back of revenues rising from Rs711 crore in FY16-17 to Rs1685 crore in FY18-19. Such phenomenal growth has allowed the company to cut debt from Rs447 crore in March 2017 to Rs284 crore in March...
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  • No trend in Nifty, Sensex – Weekly closing report
    We had mentioned in last week’s closing report that Nifty, Sensex may move sideways to down. The major indices rallied during the week but ended with minor gains. The trends of the major indices in the course of the week’s trading was:
     
     
    On Monday, the major indices closed with minor losses. On the NSE, there were 853 advances, 945 declines and 355 unchanged. Vodafone-Idea, which had hinted at not being able to remain as a going concern if relief does not come for the sector, advanced nearly 25% on the NSE over a possible government-led revival.
     
    The sharp reversal in Vodafone and other telecom counters came after Finance Minister Nirmala Sitharaman said the government doesn't want any telecom company to shut operations.
     
    ONGC reported decrease in revenues by 10% y-o-y for the quarter ended September 2019 to Rs1,03,236 crore. Net profits fell 36% y-o-y to Rs5,275 crore.
     
    Future Retail reported increase in revenues by 10% y-o-y for the quarter ended September 2019 to Rs5,470 crore. Net profits fell 7% y-o-y to Rs165.72 crore.
     
    The Bombay Burmah Trading Corporation reported increase in revenues by 6.66% y-o-y for the quarter ended September 2019 to Rs3,195 crore. Net profits fell 21% y-o-y to Rs184 crore.
     
    Softening its resolution plan for Jaypee Infratech (JIL), state-run construction major NBCC has offered 1,426 acres land, worth Rs5,001 crore, of the bankrupt company to its financial creditors, sources said. NBCC had previously offered around 950 acres to the banks.
     
    On Tuesday, the major indices closed with gains. On the NSE, there were 855 advances, 928 declines and 361 unchanged. 
     
    World's largest oil company Aramco is yet to make up its mind to participate in disinvestment of Indian fuel refiner and retailer Bharat Petroleum Corporation Ltd (BPCL) where government intends to sell its entire 53.29% stake to a strategic investor. Aramco's lesser focus on BPCL disinvestment may be a cause of worry for the Indian government that is betting big on the oil giant to take over its entire equity in BPCL.
     
    Lupin announced the launch of Potassium Chloride (KCl) for Oral Solution USP, 20 mEq, having received an approval from the United States Food and Drug Administration (U.S. FDA) earlier. Lupin's Potassium Chloride for Oral Solution USP, 20 mEq, is indicated for the treatment and prophylaxis of hypokalemia with or without metabolic alkalosis in patients for whom dietary management with potassium-rich foods or diuretic dose reduction is insufficient.
     
    TRAI is likely to initiate a consultation for bringing rationality in pricing in the Indian mobile sector which has been operating at prices that have been eroding the viability of the sector. The telecom sector is highly capital intensive with fast changing technology cycles that require continuing investments. It is, therefore, extremely important that the industry remains viable to support the vision of Digital India. Accordingly, Airtel will appropriately increase price offerings in the month beginning December.
     
    On Wednesday, the major indices opened high and ended with gains. On the NSE, there were 890 advances, 922 declines and 333 unchanged. India's benchmark equity index hit record levels led by index-heavyweight Reliance Industries (RIL) -- the largest company by market cap on Tuesday surged nearly 4% on the BSE after improved prospects of Jio.
     
    Kalpataru Power Transmission will sell its stake in its three subsidiaries to CLP India Private Limited, subject to receipt of relevant approvals and completion of conditions precedent. The company has completed the sale in one of the subsidiary viz. Kalpataru Satpura Transco.
     
    Ugar Sugar Works Ltd has announced that the sugar crushing for the season 2019-20 at Ugar Unit and Jewargi Unit has slowly started on 14th November 2019, and the same will pick up shortly to its capacity.
     
    SpiceJet has signed a MoU with Gulf Air, the national carrier of the Kingdom of Bahrain, to explore greater cooperation between the two airlines including an interline and codeshare agreement, coordinated cargo services, engineering services and pilot training.
     
    On Thursday, the major indices were volatile and closed with minor losses. On the NSE, there were 750 advances, 1,053 declines and 338 unchanged. 
     
    Sony Corp is said to be in talks to buy a stake in Network18 Media and Investments Ltd. According to a Bloomberg report, the Japanese major plans to tap the booming demand for content in the country. Besides, Sony is considering several potential deal structures, including a bid for the company or a merger of its own business in India with Network18’s entertainment channels, it said.
     
    The Essel Group is planning to sell around 16.5% stake in ZEE Entertainment Enterprises to financial investors in order to repay loan obligations to certain lenders.
     
    Bharti Airtel will partner with CuriosityStream, a global media company that delivers factual entertainment. The complete content catalogue of CuriosityStream will be available to Airtel customers on its digital entertainment platform - Airtel Xstream.
     
    The Adani Group has expressed interest in the retail and wholesale book of Dewan Housing Finance Corporation (DHFL), sources told CNBC-TV18. The Indian conglomerate may be a strong contender for the troubled mortgage lender, alongside other biggies like Piramal and Apollo, sources added.
     
    On Friday, The key Indian equity indices opened on a flat note before trading marginally lower. On the NSE, there were 842 advances, 925 declines and 376 unchanged.
     
    The Reserve Bank of India (RBI) on Friday appointed an advisory committee to advise the Administrator of the private sector Dewan Housing Finance Corp Ltd following the supercession of its board, the RBI announced. The RBI, on November 20, had superseded the board of directors of Dewan Housing Finance Corporation Ltd (DHFL) and appointed R. Subramaniakumar as the company Administrator.
     
    Airtel and Vodafone Idea are in the process of filing review petition in the Supreme Court against the AGR judgment of the top court last month. Both companies are to seek waiving of interest, penalty and relaxing 3 months timeframe to make payments after the Secretaries panel declined to offer any breather in view of the fact that any curative petition has to be filed within a month, sources said.
     
    State-run BSNL will float a 4G tender November-end to roll out new lines up to 50,000 , sources said. BSNL, which received a fresh lease of life with the Cabinet approving its revival plan in October, will be floating a tender in November-end for 4G expansion at up to 50,000 sites, said the sources adding with the aim of starting the service by June 2020 if it receives the spectrum by December end.
     
    Alembic Pharmaceuticals has received approvals from the US health regulator for its generic Deferasirox tablets used for treatment of chronic iron overload due to blood transfusions in patients over two years of age. Deferasirox tablets are indicated for the treatment of chronic iron overload due to blood transfusions in patients two years of age and older.
     
    Lupin has launched a device to track usage pattern of metered-dose inhalers (MDI) by patients suffering from chronic respiratory diseases. The device -- Adhero -- would help the patients track their MDI usage and facilitate improved adherence to therapy.

     

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    COMMENTS

    Nakul Kumar Reddy

    2 weeks ago

    File case against PMC bank , file case against them,they r worth less people.

    Valuation Oversimplified
    Albert Einstein apparently had said, “Everything should be made simple but not simpler.” The idea is to reduce complex theories into something simple but not so simple that they lose their meaning. Market valuation is a complex subject. It is not even a theory that can be proven, like those in physics. And it constantly changes character; so theories need to be adaptive and take into...
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