Tit - bits
The scrip of Titan Company Ltd is up 1.29% to 1194.50. Soon this rally is expected to spread to
other counters in the same space.
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| Photo: Financial Express |
It is pertinent to mention here that Indian jewellery demand during Q2FY20 was at 101.6 tonnes, almost a third lower, YoY due to weaker consumer sentiments. There was a decline of nearly 51% in Indian bullion imports on QoQ basis -- a clear case of a cut in Gold import duty to around 6 - 8% from the current 12.50%.
While, the commerce minister, Piyush Goel has been requesting the FMO since some time, to cut the gold import duty to 6%, the jewelry association wants it be 5%.
If Nirmala Sitaraman, considers their cases, then we will see a huge rally in the Jewellery stocks.
My favourites: Titan Co Ltd (Rs.1179.25), TBZ Ltd (Rs. 36.50) and PC Jewelers Ltd (Rs.22.35).
P C Jewelers Ltd (Rs.22.35):-
At the end of FY19, 4,000 designs (15,000+ products) from 60 showrooms across 15 states, were made available online, under same day shipping facility. This has helped the company to reach out to a wider audience.
Company is engaged in the business of manufacturing, sale and trading of gold jewellery, diamond studded jewellery and silver items and operates in different geographical areas i.e. domestic sales and export sales.
As part of its consolidation / rationalisation process and to gain operational efficiency, the Company has closed / shifted / merged some of its existing showrooms during the year.
As on March 31, 2019, the Company has 86 showrooms including 14 franchisee showrooms. The Company is also having in-house designer’s team and manufacturing units.
During the fiscal year FY19, the Company rolled out India’s first Augmented Reality Jewellery buying experience on a dynamic and real time basis as well as Online-Offline Integration across its showrooms in Delhi-NCR.
The Company has also launched many new jewellery designs and collections like I heart, Expresso, Swarna Dharohar, Inayat, Mirosa etc. Recently, the Company for the first time in India launched silver and gold medallions to commemorate ICC Cricket World Cup 2019.
#The scrip of Bharat Heavy Electricals Ltd is consolidating around the current ranges of Rs.43 - 45, before giving the ultimate break out for targets of Around Rs.91/111.
In October last year, State-owned Bharat Heavy Electricals Ltd (BHEL) zoomed to Rs.61.30 apiece on after global brokerage firm CLSA upgraded the stock to 'Buy' from 'Sell' owing to the benefits that the company could reap due to government's stake sale.
#The Budget and IT limits:-
The Broking firm, Sharekhan believes the NDA government government might increase the basic income-tax exemption limit to Rs.5 lakh from Rs.2.5 lakh for all, thus eliminating the 5% tax slab for income of Rs.2.5 lakh to 5 lakh.
"It may replace the 20% tax rate for the Rs.5-10 lakh slab with 10%; add a 20% slab for incomes of Rs.10-20 lakh and 30% slab for income above Rs.20 lakh per annum," it said.
A likely reduction in personal income-tax rates should improve sentiments of auto and white goods makers; besides small-ticket discretionary consumption plays such as Jewelry and Apparel (Textile) players.
#A report in ET on 28 January, 2020 says, an investor or a trader can get benefited if he/she use dips in the pre budget days to accumulate good stocks. According to ET:
#Positive tinkering with the dividend distribution tax should benefit good dividend paying companies such as BHEL (Rs.42.65), NFL (Rs. 28.75), etc.
Abolishing Dividend Distribution Tax (DDT) which is presently levied on the companies declaring dividends or taxing dividends in the hands of shareholders is one of the things people are expecting from Budget 2020. Any such positive move will benefit the foreign investors/companies who can claim a credit of the taxes paid on dividend in India in their respective countries.(as per the relevant treaty provisions).
It will not be an exaggeration to mention here that the domestic equitiy markets have witnessed a complete exemption on long-term capital gains (LTCG) and its replacement with the security transaction tax (STT) to the return of the LTCG alongside STT. After that came the worse, higher dividend distribution tax (DDT) as well as the income-tax surcharge. The market hopes the that the current Finance Minister would show some courage to rationalise this structure, ushering in a rally in the bourses.
On the economic front, the NDA government has an uphill task to take care of fiscal deficit, dipping GDP and reduced consumption levels and provide a much-needed boost to the economy focused on growth, increasing job opportunities and consumer spending.
At the end of FY19, 4,000 designs (15,000+ products) from 60 showrooms across 15 states, were made available online, under same day shipping facility. This has helped the company to reach out to a wider audience.
Company is engaged in the business of manufacturing, sale and trading of gold jewellery, diamond studded jewellery and silver items and operates in different geographical areas i.e. domestic sales and export sales.
As part of its consolidation / rationalisation process and to gain operational efficiency, the Company has closed / shifted / merged some of its existing showrooms during the year.
As on March 31, 2019, the Company has 86 showrooms including 14 franchisee showrooms. The Company is also having in-house designer’s team and manufacturing units.
During the fiscal year FY19, the Company rolled out India’s first Augmented Reality Jewellery buying experience on a dynamic and real time basis as well as Online-Offline Integration across its showrooms in Delhi-NCR.
The Company has also launched many new jewellery designs and collections like I heart, Expresso, Swarna Dharohar, Inayat, Mirosa etc. Recently, the Company for the first time in India launched silver and gold medallions to commemorate ICC Cricket World Cup 2019.
#The scrip of Bharat Heavy Electricals Ltd is consolidating around the current ranges of Rs.43 - 45, before giving the ultimate break out for targets of Around Rs.91/111.
In October last year, State-owned Bharat Heavy Electricals Ltd (BHEL) zoomed to Rs.61.30 apiece on after global brokerage firm CLSA upgraded the stock to 'Buy' from 'Sell' owing to the benefits that the company could reap due to government's stake sale.
#The Budget and IT limits:-
The Broking firm, Sharekhan believes the NDA government government might increase the basic income-tax exemption limit to Rs.5 lakh from Rs.2.5 lakh for all, thus eliminating the 5% tax slab for income of Rs.2.5 lakh to 5 lakh.
"It may replace the 20% tax rate for the Rs.5-10 lakh slab with 10%; add a 20% slab for incomes of Rs.10-20 lakh and 30% slab for income above Rs.20 lakh per annum," it said.
A likely reduction in personal income-tax rates should improve sentiments of auto and white goods makers; besides small-ticket discretionary consumption plays such as Jewelry and Apparel (Textile) players.
#A report in ET on 28 January, 2020 says, an investor or a trader can get benefited if he/she use dips in the pre budget days to accumulate good stocks. According to ET:
Those who can brave the current market depression due to the coronavirus outbreak might be in for big rewards post Budget.Except in of 2017 and 2012, when the indices gained 2-3%, the benchmark indices have traditionally performed poorly in the pre-Budget week.
In last 10 Union Budgets, (excluding the interim ones), Sensex and Nifty have fallen six times in the pre-Budget week and remained flat in one. Only thrice did they offer positive returns.
#Positive tinkering with the dividend distribution tax should benefit good dividend paying companies such as BHEL (Rs.42.65), NFL (Rs. 28.75), etc.
Abolishing Dividend Distribution Tax (DDT) which is presently levied on the companies declaring dividends or taxing dividends in the hands of shareholders is one of the things people are expecting from Budget 2020. Any such positive move will benefit the foreign investors/companies who can claim a credit of the taxes paid on dividend in India in their respective countries.(as per the relevant treaty provisions).
It will not be an exaggeration to mention here that the domestic equitiy markets have witnessed a complete exemption on long-term capital gains (LTCG) and its replacement with the security transaction tax (STT) to the return of the LTCG alongside STT. After that came the worse, higher dividend distribution tax (DDT) as well as the income-tax surcharge. The market hopes the that the current Finance Minister would show some courage to rationalise this structure, ushering in a rally in the bourses.
On the economic front, the NDA government has an uphill task to take care of fiscal deficit, dipping GDP and reduced consumption levels and provide a much-needed boost to the economy focused on growth, increasing job opportunities and consumer spending.
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