Axis Value Fund NFO

 

Investment Objective:  To generate consistent long-term capital appreciation by investing predominantly in equity and equity related securities by following value investing strategy. However, there can be no assurance that the investment objective of the Scheme will be achieved.

New Fund Offer Opens on : September 2, 2021 New Fund Offer Closes on : September 16, 2021 Scheme re-opens on : Within five Business Days froms the date of allotment.

WHERE WILL THE SCHEME INVEST? The corpus of the Scheme, subject to the enabling provisions of asset allocation pattern, will be invested in securities/ instruments which will include but not limited to: Equity and Equity Related Instruments 1. Equity share is a security that represents ownership interest in a company. 2. Equity Related Instruments are securities which give the holder of the security right to receive Equity Shares on pre agreed terms. It includes convertible bonds, convertible debentures, equity warrants, convertible preference shares, etc. 3. Foreign Equity and Equity Related Instrument as may be permitted by SEBI/RBI from time to time. 4. Equity Derivatives are financial instruments, generally traded on an exchange, the price of which is directly dependent upon (i.e., “derived from”) the value of equity shares or equity indices. Derivatives involve the trading of rights or obligations based on the underlying, but do not directly transfer property.

 

Sansera Engineering Limited IPO

 

Incorporated in 1981, Sansera manufactures complex and critical precision engineered components and caters across automotive and non-automotive sectors. The company manufactures and supplies a wide range of precision forged and machined components and assemblies which are critical for the two-wheeler, passenger vehicle, and commercial vehicle verticals for the automotive sector. For the non-automotive sector, the company manufactures and supplies a wide range of precision components for aerospace, off-road, agriculture, and other segments. The company mostly supplies forged & machined products to OEM’s.

For FY’21, the Automotive sector contributed 88.45% and non-automotive 11.45% of the revenue. The company derives around 65% of its revenue from India and the rest 35% from other countries. The company is one of the major suppliers of connecting rods globally. The company has 15 manufacturing plants across India of which 9 are in Bangalore.

Sansera Engineering IPO Details

IPO Opening Date	Sep 14, 2021
IPO Closing Date	Sep 16, 2021
Issue Type	Book Built Issue IPO
Face Value	₹2 per equity share
IPO Price	₹734 to ₹744 per equity share
Market Lot	20 Shares
Min Order Quantity	20 Shares
Listing At	BSE, NSE
Issue Size	17,244,328 Eq Shares of ₹2 (aggregating up to ₹1,282.98 Cr)
Offer for Sale	17,244,328 Eq Shares of ₹2 (aggregating up to ₹1,282.98 Cr)

Sansera Engineering IPO Tentative Timetable

IPO Open Date	Sep 14, 2021
IPO Close Date	Sep 16, 2021
Basis of Allotment Date	Sep 21, 2021
Initiation of Refunds	Sep 22, 2021
Credit of Shares to Demat Account	Sep 23, 2021
IPO Listing Date	Sep 24, 2021

FINANCIAL PERFORMANCE: 

On the financial performance front, on the consolidated basis, SEL has posted turnover/net profits of Rs. 1640.81 cr. / Rs. 98.06 cr. (FY19), Rs. 1473.14 cr. / Rs. 79.91 cr. (FY20) and Rs. 1572.36 cr. / Rs. 109.86 cr. (FY21). Though its top-line marked growth, the bottom line posted inconsistency. According to the management, due to a slowdown in the auto sector, they marked a downturn in their performance for FY20, but recovered soon despite pandemic and posted growth in FY21 following its diversification in other product lines and product mix. 

For the last three fiscals, SEL has posted an average EPS of Rs. 18.42 and an average RoNW of 11.98%. The issue is priced at a P/BV of xx based on its NAV of Rs. 166.96 as of March 31, 2021. Based on its EPS of Rs. 20.55 for FY21, the issue is priced at a P/E of 36.20 making it a fully priced issue. If we consider average EPS of Rs. 18.42 for the last three fiscals, then the asking price is at a P/E of 40.39.

Investors may consider investment for the medium to long term

BARODA BUSINESS CYCLE FUND NFO

 

About Baroda Business Cycle Fund

 Business cycle approach is an investment based on identifying the economic trend. - The various business indicators help us understand the economic trend. - The business cycles have 4 phases; Recovery, Growth, Expansion and Contraction, each phase offers unique Opportunities and Rewards.

 

BUSINESS CYCLE INVESTING – KEY DIFFERENTIATORS 

• Top-Down Approach - Focus on Macro indicators for sector allocation
• Wind Shield Approach - Focus on forward indicators rather than historical data
• Flexible Approach - Exposure to a set of sectors that are beneficiaries from the economic recovery & is not restrictive in its investment approach
• First Mover Advantage - Based on the lead indicators, opportunities are identified well ahead of time
• Agility - Investments across sectors are not static in nature & are rotated based on business cycle phase

 CASE FOR BUSINESS CYCLE INVESTING

• Strong consumer demand across sectors as economy reopens
•  Record low interest rates, driving increased investor participation in equities
•  Improving GDP growth rate
•  Low interest rate scenario with central banks supporting growth
• Robust earnings growth after a lost decade
•  Nifty EPS is expected to grow ~25% CAGR from FY21-23 vs ~7% CAGR in last decade*
•  *Source: Internal Research, Bloomberg
•  Increased capacity utilization
•  Capex revival

 BARODA BUSINESS CYCLE FUND INVESTMENT PROCESS 

• Monitor Macro Indicators & identify Business Cycle Opportunities
• Identify themes / sectors based on business cycle opportunity
• Identify stocks based on finalised themes / sectors
• A periodic assessment of the macro-economic environment and the subsequent investment approach is conducted, based on which the portfolio may be reallocated.

 

BARODA BUSINESS CYCLE FUND – KEY BENEFITS

 

• A fund which could benefit from the changes in the Economic Cycle
• Investing is based on the Macro-Economic Indicators rather than themes or sectors
• Agility to move across sectors, with no sectoral caps on allocation
• Top-Down Approach with Bottom-up stock selection

 

BARODA BUSINESS CYCLE FUND – FUND SUITABILITY

• Investors aiming to benefit from the strategic fund positioning based on the business cycle phase
• Investors aiming to benefit from economic recovery over the next few years
• Investors aiming to add style diversification to their portfolio
• Investors aiming wealth creation through a fund which could provide higher alpha and better risk-adjusted returns over the long term

 

Scheme Details

Type:     An open-ended equity scheme following the Business Cycles theme.

Investment Objective:    The primary objective of the Scheme is to generate long term capital appreciation for investors by investing predominantly in equity and equity related securities with a focus on riding business cycles through dynamic allocation between various sectors and stocks at different stages of business cycles in the economy. However, there is no assurance that the investment objective of the Scheme will be achieved

NFO Period:        Open Date: 24th August 2021

Close Date: 07th September 2021

The scheme is suitable for investors who are seeking*:

•  Long term wealth creation
• Investment predominantly in equity & equity related securities, including equity derivatives in Indian markets with focus on riding business cycles through dynamic allocation between various sectors & stocks at different stages of business cycles in the economy

Vijaya Diagnostic Centre Limited IPO

 

Vijaya Diagnostic Centre was incorporated in 2002, and is the largest integrated diagnostic chain in southern India. Vijaya Diagnostic provides integrated services of pathology and radiology and offers around 740 routine tests, 870 specialized pathology tests, 220 basic tests, and 320 advanced radiology tests. Vijaya diagnostic network consists of 80 diagnostic centers and 11 reference labs across 13 cities. Companies 81% of revenue comes from Hyderabad.

Positives 

(a) The fastest growing diagnostic chain with a dominant position in south India. Between 2017 and 2020 the volume of tests has grown by 15%, while the volume of patients has grown by 14%. 

(b) The company provides integrated diagnostic pathology & radiology services under one roof. 

(c) The company has a very high brand recall in its core market of Hyderabad and derives 92% of its revenues from its high margin B2C business. 

Investment concerns: 

(a) The company has very high concentration towards one city with Hyderabad accounting for 81% of the revenues. Increase in competition in the main market can impact growth as well as EBITDA margins. 

(b) In FY2021, the company had got some benefits due to increase in COVID related tests, which is not expected to continue in the future and can have an adverse impact on the volume. 

(c) Low promoter holding will also be an issue for the company as post IPO the promoters’ holding will go down to 32.7%. 

Outlook & Valuation: Based on FY2021 numbers, the IPO is priced at a Price to Earnings of 64.3 times and EV/EBITDA of 30 times at the upper price band of the IPO, which is in line with the listed peer group. The company already has a higher market share in key geographies like Hyderabad and we do not expect COVID related benefits to continue in the coming years. We believe that at ₹531, all the near term positives are priced in which leaves limited upside for the investors. Hence, we are assigning a “NEUTRAL” recommendation to the Vijaya Diagnostic centre limited IPO. 

Vijaya Diagnostic IPO Details

IPO Opening Date	Sep 1, 2021
IPO Closing Date	Sep 3, 2021
Issue Type	Book Built Issue IPO
Face Value	₹1 per equity share
IPO Price	₹522 to ₹531 per equity share
Market Lot	28 Shares
Min Order Quantity	28 Shares
Listing At	BSE, NSE
Issue Size	35,688,064 Eq Shares of ₹1 (aggregating up to ₹1,895.04 Cr)
Offer for Sale	35,688,064 Eq Shares of ₹1 (aggregating up to ₹1,895.04 Cr)

Vijaya Diagnostic IPO Tentative Timetable

IPO Open Date	Sep 1, 2021
IPO Close Date	Sep 3, 2021
Basis of Allotment Date	Sep 8, 2021
Initiation of Refunds	Sep 9, 2021
Credit of Shares to Demat Account	Sep 13, 2021
IPO Listing Date	Sep 14, 2021

Ami Organics Limited IPO

 

Incorporated in 2004, Ami Organics Limited is one of the leading research and development driven manufacturers of specialty chemicals. The company manufactures different types of Advanced Pharmaceutical Intermediates and Active Pharmaceutical ingredients (API) for New Chemical Entities, and material for agrochemicals and fine chemicals.

Competitive strengths:

• One of the leading manufacturers of certain Pharma Intermediates i.e. Dolutegravir, Trazodone, Entacapone, Nintedanib and Rivaroxaban.
• Strong and diversified product portfolio with 450+ Pharma Intermediates across 17 therapeutic areas.
• Extensive geographical presence and diversified customer base.
• Strong R&D, sales and marketing capabilities
• Consistent financial performance track record.

Ami Organics IPO Details

IPO Opening Date	Sep 1, 2021
IPO Closing Date	Sep 3, 2021
Issue Type	Book Built Issue IPO
Face Value	₹10 per equity share
IPO Price	₹603 to ₹610 per equity share
Market Lot	24 Shares
Min Order Quantity	24 Shares
Listing At	BSE, NSE
Issue Size	[.] Eq Shares of ₹10 (aggregating up to ₹569.64 Cr)
Fresh Issue	[.] Eq Shares of ₹10 (aggregating up to ₹200.00 Cr)
Offer for Sale	6,059,600 Eq Shares of ₹10 (aggregating up to ₹369.64 Cr)

Ami Organics IPO Tentative Timetable

IPO Open Date	Sep 1, 2021
IPO Close Date	Sep 3, 2021
Basis of Allotment Date	Sep 8, 2021
Initiation of Refunds	Sep 9, 2021
Credit of Shares to Demat Account	Sep 13, 2021
IPO Listing Date	Sep 14, 2021

subscribe for long term

Canara Robeco Value Fund NFO

Canara Robeco Value Fund is an open-ended equity scheme which will follow a value investment strategy. The fund intends to take significant exposure into equities and aims to generate long-term capital appreciation from a diversified portfolio in the Indian markets with higher focus on undervalued companies.

• The fund tries to find companies which are trading at a discount to their ‘Intrinsic Value’.
• ‘Intrinsic Value’ strategy would look at overreaction of market participants to the short-term developments in industries/companies and exploit available opportunities for investment returns.
• This strategy would also rely on the analytical and behavioural edge to generate investor alpha.

Intrinsic Value Investing - The Concept:

• Intrinsic Value Investing is a broader philosophy which involves buying companies at a price lower than their intrinsic value
• Keeping a margin of safety
• Taking advantage of market inefficiencies

Essence Of Intrinsic Value Investing

• Value investing is an opportunity for investors to benefit from the mispricing opportunities (buy low), to only sell at a later stage where the valuations revert to the companies’ intrinsic value (sell high).
• An important aspect of intrinsic value investing is to keep an appropriate “MARGIN OF SAFETY”which significantly improves the risk-reward ratio associated with investing in a business.

Margin Of Safety

It is a principle of investing in which an investor only purchases securities when their market price is significantly below their intrinsic value. Margin of safety incorporates quantitative and qualitative considerations to determine a price target and a safety margin (or cushion) that discounts that target. In value investing, it is important to have a reasonable protection for the investment made i.e. margin of safety. Therefore, higher the margin of safety, lower is the likely risk.

Fund’s Portfolio Creation Approach

Who Should Invest In This Fund?

• Patient investors seeking value approach to investing with focus on investing in stocks having adequate margin of safety.
• Investors with a long-term investment horizon of at least 3 years
• Investors looking for a fund with a potential to deliver better risk adjusted returns in the long term
• Investors focusing on underlying businesses and looking for diversification / differentiated portfolio

SBI Balanced Advantage Fund NFO

 

SBI Balanced Advantage Fund is an open-ended hybrid fund that dynamically manages its asset allocation between long equity including arbitrage and debt securities based on the market dynamics. The Fund aims to capture the potential upside and limit the downside in a volatile equity market. 

The investment objective of the Scheme is to provide long-term capital appreciation / income from a dynamic mix of equity and debt investments. However, there can be no assurance that the investment objective of the Scheme will be realised.

The Scheme proposes to follow a three-tiered investment strategy which would consist of: 

• Asset Allocation 

• Strategy Tilt (Style / Market-cap / Sector allocation) 

• Stock / Security Selection 

The Fund Manager will determine asset allocation between equity and debt depending on prevailing market and economic conditions. The debt-equity mix at any point of time will be a function of various factors such as equity valuations, interest rates, view on the asset classes and risk management etc.

FOR EQUITY: The Fund Manager while selecting stocks will focus on fundamentals of the business, the quality of management, the financial strength of the company, market leadership etc. The Scheme will invest across sectors without any market cap or sectoral bias. 

FOR DEBT: The Scheme will invest in a diversified range of debt and money market instruments. The Fund Manager will allocate the assets of the Scheme taking into consideration the prevailing interest rate scenario, yield curve, yield spread & liquidity of the different instruments.