PPAP Automotive: Long-term or Short-term Value?
PPAP Automotive Ltd (PPAP) has been making extrusion products for automotive parts since 1985. It is now a leading manufacturer of automotive sealing systems as well as interior and exterior automotive parts in India. Its core competence is in developing automotive body sealing systems as well as interior and exterior injection-moulded parts. It has a technical collaboration with Tokai...
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  • Nifty, Sensex continues to trade in a narrow range – Monday closing report
    We had mentioned in previous week’s closing report that Nifty, Sensex were trendless. On Monday, the major indices opened in the green but ended with minor losses. On the NSE, there were 1,276 advances, 543 declines and 388 unchanged.
     
    The trends of the major indices in the course of Monday’s trading are given in the table below:
     
     
    Indoco Remedies received approval from the US health regulator for blood-thinning drug apixaban.
     
    Tata Motors saw a further improvement in Jaguar Land Rover sales for July and August over Q1FY21. Jaguar Land Rover sold 36,421 vehicles in July and 28,887 in the seasonally low month of August.
     
    Adani Green Energy reported a standalone net profit of Rs 138 crore against Rs 5.52 crore in the year-ago period. Standalone total income stood at Rs 253 crore against Rs 192 crore YoY.
     
    AurionPro Solutions’ subsidiary Integro Technologies Pte Limited bagged an order from the largest bank in Singapore that has operations in Southeast Asia. The project is for the implementation of Smart Lender product version 4 by the bank to be executed across its subsidiaries and branches.
     
    Skipper reported a net loss at Rs 11.6 crore against a profit of Rs 7.9 crore YoY. Revenue went down 34.8% YoY at Rs 220.7 crore against Rs 338.5 crore.
     
    RITES proposed for a buy-back of its fully paid-up equity shares.
     
    Ashoka Buildcon bagged two EPC projects worth Rs 1,390 crore under Bharatmala-I.
     
    REPRO India reported a net loss of Rs17 crore for the quarter ended June 2020 compared to a profit of Rs6.93 crore YoY. Revenues declined 80% YoY to Rs20.57 crore.
     
    Mirza International reported a net loss of Rs23.23 crore for the quarter ended June 2020 compared to a profit of Rs9.53 crore YoY. Revenues declined 73% YoY to Rs83.24 crore.
     
    Srei Infrastructure Finance reported a consolidated profit after tax of Rs 23.01 crore during the quarter ended June 30, 2020. Total consolidated income stood at Rs 1,214.45 crore.
     
    The top gainers and top losers of the major indices are given in the table below:
     
     
    The closing values of the major Asian indices are given in the table below:
     
  • User 

    Promoter share pledge at a 3-year high
    Pledging of shares by promoters in companies listed on NSE reached a three-year high of 1.86 per cent of total market capitalisation.
     
    The last time it was higher was on April 30, 2017 at 1.88 per cent, as per prime info base, an initiative of Prime Database.
     
    In value terms, promoters' share pledging increased by a huge 55.97 per cent from last month with the value of pledged shares going up to Rs 2.77 lakh crore as on August 31, compared to Rs 1.78 lakh crore as on July 31, according to Pranav Haldea, Managing Director, PRIME Database Group.
     
    According to Haldea, "this increase was primarily driven by pledging of shares by promoters in Hindustan Zinc and Vedanta for the purpose of the delisting of Vedanta".
     
    As on 31st August 2020, shares were pledged in 463 of the 1,656 main-board companies listed on NSE, as compared to 461 companies on July 31.
     
    High pledge levels are typically not considered a good sign by the investors as a downturn in the market price can lead to invocation and change in management.
     
    Surprisingly, there were as many as 29 companies in which the complete holding (100 per cent) of the promoters was under pledge.
     
    At another level, there were as many as 81 companies in which more than 90 per cent of the promoter's shareholding was pledged and 192 companies in which more than 50 per cent of the promoter's shareholding was pledged.
     
    SEBI at its board meeting held on in June 2019 had mandated that where pledging of promoters (and PACs) is more than 20 per cent of the total share capital of the company or 50 per cent of the Total Promoter Holding, promoters shall be required to disclose detailed reasons for encumbrance separately. As on August 31, there were 230 such companies listed on NSE.
     
    Companies which moved from zero per cent to some per cent pledging of promoters' holding from July to August were Hindustan Zinc (to 100), Vedanta (to 99.99) and Max Healthcare Institute (to 13.35). Overall, there were 13 companies in which the percentage of promoter holding pledged increased in August.
     
    There were 2 companies in which pledged shares were brought down to zero in August 2020, these being Tirupati Forge (from 47.92) and Jyothy Labs (from 6.58). Overall, there were 51 companies in which the percentage of promoter holding pledged decreased in August 2020.
     
    The pledge creation transactions (fresh or additional pledge) took place in shares of promoters of 29 companies worth a huge Rs 90,353.22 crore in August, while in July it was 28 companies worth Rs 6,402.26 crore.
     
    In 21 of these 29 companies, promoters also had released their shares worth Rs 6,769.04 crore in August.
     
    Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.
     
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