IBS TIMES 220TH ISSUE

TEAM IBS TIMES

Editor’s Letter The year 2020 has been unlike any other that most of us have seen with the COVID-19 pandemic resulting in huge deaths, economic crisis and a drastic change in our way of life. The impact of the pandemic spilled over to the stock markets worldwide causing one the fastest and most devastating crashes since 1929. Although things have picked up since then, reports of new strains of the virus has led to some volatility once again.

History however has shown us that even the darkest clouds have a silver lining, and, in this issue, we aim to take a better look at the same. Over the years there are companies who have not only managed to stay afloat during such crashes but also turned it into an opportunity for growth.

We cover a few of these companies and their reasons for success in this 220th issue.

As an editor, it gives us immense pleasure when we hear from our readers. We intend to improve ourselves every step of the day and would like to invite you, our readers to support the same. Keep following us on www.finstreetibshyd.in as well. Please write to us and become a part of the discussion.

Email ID: editor.ibstimes@gmail.com Neha Thampi (Senior Editor, Magazine) POC, IBS Times

CONTENTS Understanding Stock Market Crashes By: Pradeep Gupta Walmart By: L H Vadiraj Zee Entertainment By: Meghana Gummuluru M&M Financial Services By: Anjali Arun Upsurge of Gland Pharma Market Value in Tough Times By: Anish Das Dabur By: Supriya Reddy Dendi Coca Cola During the Recession By: Mohit Rao Blooming in Crisis- The Tale of HUL By: Rashika Ravichandran Bharti Airtel, Defying the Tough Phase of Time By: Mohammed Abdullah Afridi Bajaj Finance Limited By: Dishant Mehta Asian Paints Limited By: Satya Sree

Understanding Stock Market Crashes By: Pradeep When you are at the top the small problems won’t bother you, only the massive ones will. In the world of the stock market, there are many stock indexes with several companies on their list. Dow Jones Industrial Average, S&P 500 Index, Sensex and Nifty are amongst the top 10 of the world’s biggest stock indexes. These indexes were affected a lot and had to face a sudden crash many a time's dragging huge amounts of losses with it.

A stock market crash can be defined as an unforeseen, dramatic diminishing value of stock prices which results in a great loss for the investors and traders. This is followed by selling off of shares at the prices available to avoid huge losses and trigger a prolonged bear market and signal great trouble for the country’s economy. Although no fixed threshold digit has been assigned to define a stock market crash in numbers, it is generally considered to be a crash when there is a huge drop, a double-digit percentage within a few days.

Such crashes have occurred very rarely but whenever the stock market crashed it has made history and stuck into the minds of the people. Famous stock market crashes include: • The Great Depression in The Year 1929, • The Dotcom Bubble Burst from 1996 to 2001 • The Global Financial Crisis (GFC) in the Year 2008, • The Corona virus Crash 1920 – 1928 was considered as “The Roaring Twenties” as at the beginning of 20th Century people saw a lot of inventions coming up along with mass production of goods. The US economy was on a boom and the businesses were doing well along with flashing increases in the stock prices. From 1929, there was sluggish growth in the US economy as many industries such as the automobile sector and consumer durables saw a decline in sales and hence started decreasing their production, unemployment was visible the stock market was consistently seeing a decrease in prices. People were withdrawing their deposits and at the same time, around 7000 banks started failing to do so as they had given loans to the industries. With industries not performing well the banks couldn’t get back their loans and hence there was instability in the country. People had already stopped investing and banks were not performing their activities well they kept the money with them due to which there was no money liquidated in the market. Initially which seemed to be a slowdown later was converted to a recession and came out as depression as no businesses were able to perform well at that time. By 1933 the problem was solved when President Roosevelt brought FDIC (Federal Deposit Insurance Corporation) which acted as a regulator for the banks. Along with this, WW2 taking place the US economy was brought on track again. In the year 1929, the S&P 500 index was at 24.86 points and by 1933 it was dropped to 7.09 points.

The 2007 – 2008 crisis which shook multiple countries which were directly or indirectly connected to the US. This all happened due to the dysfunctional operations of the banking system of the country paired up by the investment banking and the insurance company. This was led by the dotcom bubble, which gained sudden rise due to the introduction of the internet and the companies coming out of it people started pouring money into technological companies In the year 1999 there were around 457 IPO’s majorly of internet companies and out of those 117 stocks prices doubled on the first day of trading. The bubble finally got burst by 2001 leading to a sudden fall in stock prices as the technology companies weren’t performing well and hence people started withdrawing their money from the stock market. NASDAQ fell to 1139.90 points from 5048.62 points and it took 15 years for NASDAQ to reach to more than 5000 points. As the interest rates were as low as 1%, investors started investing in Real Estate as the rates were increasing also the government was asking people to purchase houses.

People started borrowing loans for purchasing houses at an adjustable interest rate about which they were unaware, borrowing the complete price of the houses as loan.

The investment banking companies asked the banks to lend more and more loans which lead to sub-prime lending where the borrower's details weren’t verified properly whether they will be able to pay back the loans or not as investment banks started purchasing the loans and collectively called it as CDO (Collateralized Debt Obligation). These CDO’s were rated by the credit rating agency and approximately 70% of them were rated “AAA”, the highest rating. Countrywide Financial Corp and Amerequest Mortgage Company lent approximately $ 177 billion sub-prime loans. From 2001 – 2007 these CDO’s were further sold to the investors, AIG one of the world’s finest insurance company started providing insurance to the investors against the CDO’s. As the interest rates were adjustable the repayment of loans was becoming difficult for the borrowers and hence, they started defaulting the loans. The banks started selling off the houses but due to increasing interest rates and numerous defaults in loan repayment which led to 0 value of COD and AIG lost around $ 99 billion which was bailed out by the US government by investing $ 85 billion. Investors were no more interested in CDO’s leading to a loss for the Investment Banks such as Lehman Brothers, Bears Stearns, Merrill Lynch. There was no such regulation on CDO’s and its insurance. Both investment banks and banks lost $ 450 billion and the industries were not getting any capital which started shutting down, unemployment increased, economic growth stopped. However, this crisis was solved as the US government started bailing out companies such as AIG and

also decreased the interest rates so that the businesses could start their work again and unemployment could be eradicated. In the year 2008, the DOW JONES INDUSTRIAL AVERAGE opened at 13043.96 points and closed at 8776.39 points with the lowest points to 7552.29.

Sensex opened in the year 2020 at 41584 points at the time when China was suffering through the pandemic and the moment it hit India it fell down to 25638.9 points on 24 th March 2020. Each and every country was hit down by the pandemic be it a developed one or an underdeveloped one. The widespread of COVID 19 made the stock market suffer a lot every business was shut and 0 output of goods were clearly visible from the manufacturing firms.

Companies lost all they had gain so far none was left and it affected India so badly that the GDP went down to record negative. Companies have managed to survive and came on track again, as by 18/12/2020 Sensex saw 52-week high points to 47026.02. 20 IPO’s have launched in this year and shown good results along with multiple mergers and acquisitions, investments taking place.

Despite of all these crises taking place in these 100 years many companies have managed to survive and converted opportunities to successful results.

(Sensex points in 2020)

Walmart By: Vadiraj “Each Walmart store should reflect the values of its customers and support the vision they hold for their community.” - Sam Walton Walmart headquartered in Bentonville was started by Sam Walton in 1962 after conducting market research he identified the need for discount chains for customers in the USA. This American multinational retail corporation operates a chain of grocery stores, discount departmental stores, and hypermarkets. Everything was running smoothly in the retail sector till this double-dip recession came in 2008. This economic recession made many retail stores struggle to survive in the US and the world. One side of the coin was focused on struggling retail stores. But on the other side, Walmart was growing and registering profit.

Talking about the time of crisis the competitors like TARGET, NORDSTROM, etc showed a decline in the fourth-quarter profits. They were disappointing. Whether to call it a mystery or the secret formula that Walmart put forward to surpass these retailers by catering to workingclass customers. Not only this it pasted S&P Retail index and closed highest on the stock exchange since March’05.

The Fiscal year 2008 sets a record for any retailer, Walmart recorded sales of $374.5 billion, an increase of 8.6% in sales as compared to the previous fiscal year. The fourth-quarter reports a 2.5% increase in Sam’s club which is the warehouse division and posted $44.4 billion in sales. This happened due to its continuous efforts and trends towards low-cost efficient operations. Its mantra is to offer quality, value, and innovation. At Sam’s club, the goal was to provide members with an efficient and friendly experience. The same-store sales rose by 1.6% for the US. Their sales rose not dramatically, it came from the increase in net sales of the existing units.

When sales are concerned in the time of crisis, Walmart focused on selling the necessary items at Everyday low prices (EDLP) and communicating value to customers. The strategy they followed was to take the retail stores towards rural areas and selling the 1500 key items at a low cost. Walmart’s core values of low-cost distribution, customer orientation was not sacrificed in selling the necessary goods at EDLP. This helped in maintaining the growth without affecting the low overhead costs and the distribution system. Also, people were more price-conscious than fashion conscious. They started to save more to fulfil their daily needs.

So, this where Walmart comes into the picture to satisfy the customer’s basic needs by ensuring EDLP.

When this low pricing strategy did not attract the customers initially because they were of the idea that the brands or the wide variety of products offered by the company were of low quality.

It offered low-value products. They had this perception. But once the customers started coming and visited the products offered were not of low quality, rather they were premium-ranging brands whose charges were low at Walmart. The value offered to customers was not of low quality.

During a recession most of the companies suffer from losses, their budget goes off the balance.

But Walmart used print advertisements and television advertisements to promote its discounted prices on the necessary items to attract the customers. Whether it’s the normal year or the pandemic or the recession, the consumption for necessities does not come down. This was where Walmart stepped and used this opportunity to target the customers and influence them to buy from them. The brand equity of Walmart is “Saving People’s Money” which is what it makes unique from other retailers and gets it a competitive edge over the others.

The Stock Market is the future market. The price of the shares puts investors in a dilemma whether to invest or not, gives insight about the sales and profit in the coming quarters. The expectations were there that the increase in profits will come but slightly. The President of the United States announced the economic stimulus package where individuals earning less than $75000 and $150000 to families. This economic package was a way that many of them might shop at Walmart. Spending $300 is not a hefty amount when compared to spending it on any of the items to get repaired or cleaning the damaged product etc. But it’s a lot more to spend your days shopping from Walmart for the daily necessary goods for survival.

Walmart is the company that has a forward-looking approach, its international sales were more meaningful to be reported. In Mexico & China, the rapid expansion strategy used by Walmart has reaped benefits as Walmart’s International sales in 2003 were just 16.7% of the overall revenues. But January 2008 shows the rise in International sales by 17.5%. The international sales constitute of about 24.2% of the overall. In this Recession period, it focussed on adding more dollars in the pockets of Walmart by expanding the operations globally. They built their focus towards the groceries, aggressive strategies implemented to focus on the necessities in

the time of recession. They looked at groceries in the way people should get to stores for the first time to attract potential targets and make these potential ones into the main ones.

What Walmart did other than the everyday low prices is it announced the plans in the month of October to cut prices every week until Christmas. This was the strategic move to be the “Price Leader�. This was to gain a competitive advantage by focusing on low cost to beat the rivals and win the hearts of customers. Not only this but the Black Friday Sales were the main reason why this price cut was to be done to attract the customers and increase the sales by cutting the margins. The main competitor TARGET found this step as it was difficult for them to match the competition as this double-dip recession has already hit them along with which Walmart came in the attacking mode.

Walmart used this recession as an opportunity and gained momentum in the 2008 depression period.

Zee Entertainment By: Meghana Subhash Chandra, who belongs to the media from grains, focuses on big things and is the leading entertainment company in India Zee Entertainment NSE 1.27% Enterprises Limited (JEEL). Shares of Zee and Essel Group companies rose on Friday. Zee Enterprises fell 26 percent, Dish TV NSE 7.69 percent, and 33 percent.

The profit of Zee Entertainment Enterprises Ltd was almost wiped out in the pandemic-quarter ending June. According to the exchange filing, Broadcaster's net profit fell 94% year-on-year to Rs 29.3 crore during the April-June period. This compares with a consensus estimate of Rs 331 crore by analysts tracked by Bloomberg.

The company has suffered a surprise loss of Rs 766.7 crore in the last three months due to the unusual item. Zee's revenue fell 35% year-on-year to Rs 1,312 crore in the 3 months to June.

Aiming to contain the Kovid-19 epidemic, India has confined its 1.3 billion people to their homes for more than two months since the end of March, shutting down all operations but providing essential services.

This has hurt advertising revenue for broadcasters due to the continued economic slowdown over the past year. It further increased as the number of television viewers decreased due to the lack of new shows. ICICI Direct estimates that broadcasters will lose 60% of their revenue due to the lockdown.

The infiltration of cheap data and smartphones has led to an increase in online streaming. Zee, which owns the streaming platform ZEE5, bury high subscription revenue and some decline in its core business. Zee Entertainment's revenue fell 85% to Rs 108 crore before interest, tax, depreciation, and amortization, while EBITDA margin fell to 8% from 36% a year ago.

Segment-Wise Performance • Advertising revenue fell 65% to Rs 421 crores. • Subsidy revenue increased by 5% to Rs 744 crores due to the implementation of the new tariff order and an increase in subscription revenue of ZEE5.

As lockdown restrictions begin to ease, the company says it will begin producing new content in line with government directives. "This is expected to lead to an increase in business activity for the group."

Broad Reshuffle Subhash Chandra resigns as a non-executive director of Zee Entertainment But from August 19 he was appointed Chairman Emeritus on Broadcaster, where he will serve as an advisor.

The position takes no pay. R Gopalan Chandra, Additional Director, Zee Entertainment, has been appointed Chairman of the Board from 2019.

Key Concall Takeaway • • • • • • • • •

Expecting to deliver more than 50% profit to free cash flow conversion from the financial year 2022.

Movie buying will be significantly moderate going ahead as the library is built over the last three to four years.

The financial year 2021 will see a significant reduction in working capital and movie buying.

Receivables will be coming down in coming quarters.

Ebitda margin will improve in the second quarter.

Margins will go back to 30% or more in the financial year 2022.

Expect ad-revenues to grow to start from the third quarter this year.

Growth will come back from the second half this year.

ZEE5’s revenue and Ebitda disclosure along with operating metrics would be provided every quarter.

Shares of Zee Entertainment closed 2.8% higher before the quarterly results were announced, compared to a gain of 1.26% in the Nifty 50 index.

A Positive Ray Puneet Goenka, the Managing Director and CEO of Zee Entertainment, is affectionately known as 'Mr. Positive' by his colleagues. Goenka lived up to his positive and serene image even during the most difficult phase of his career when he had to repay a debt of Rs 6,776 crore as of September 30. Zee Promoters (part of the Essel Group) recently sold its 11 percent stake to financial investor Invesco Openheimer for Rs 4,224 crore. Goenka reiterated that he believes he can repay his loan by September 30, "This is life as usual," in an interview with BT's Ajitha Shashidhar, Goenka talks about how he approached the debt crisis and ended up repaying his plans when he arrived.

The Profits Zee Entertainment Ltd posted a consolidated net profit of Rs 93.41 crore for the 2nd quarter ended Monday. It also had posted a net profit of Rs 412.09 crore to BSE in the previous year.

The total income that was gained for the quarter was Rs 1,760.61 crore as against Rs 2,190.13 crore in the year-ago period. Due to the issues caused by COVID-19 on business operations, there were impacts on quarterly and half-yearly results ending 30 September 2020. Therefore, the results for the quarter and half year ended September 30, 2020, cannot be compared with the results for the previous period.

The company had posted revenue of Rs 902.79 crores in the July-September quarter. 1,224.66 crores during the same period last year. Its subscription revenue was Rs 88.29 crores as against Rs 723.50 crores in the year-ago period.

Zee Entertainment Enterprise's consolidated net profit for the April-September period was Rs 122.69 crores, compared to Rs 3,099.02 crore in the year-ago period.

Zee Entertainment’s shares settled at Rs 183.35 on the BSE on Monday, down 2.40 percent from the previous close.

Innovations Launched A ‘Cinema2Home’ pay-per-view movie service called ZeePlex was launched.

Zee Entertainment Enterprises Limited (ZEE) on Tuesday announced the launch of ‘ZeePlex’ - ‘Cinema 2 Home’ (C2H) service on television and digital platforms. The idea is this new offering is to give the consumers the advantage of watching new movie releases in their movies "at attractive (per movie) prices".

This service is available in India from October 2 as a pay-per-view service for subscribers of leading distribution platforms such as Dish D2H, Tata Sky, and Airtel Digital TV. In addition to consumer convenience, this new movie distribution model will improve the overall commercial ecosystem for filmmakers, enabling them to showcase their creative work, the company said, adding that it will serve a wider range of audiences on established entertainment platforms.

The CEO, Sharik in an interview stated that they are excited to bring the new offering to all movie buffs in India and even around the world too.

The CEO added, they love to capture the latest movies in nearby theaters and have realized the need for a solution like ZeePlex that gives customers the convenience and convenience of capturing their favorite movies in their home comforts, with friends and family.

These new services have received a lot of interest from the producers and are looking forward to releasing strong blockbusters in languages.

Zee Plex, as a C2H service, is also available worldwide on ZEE5 (ZEE’s OTT Platform).

M&M Financial Service By: Anjali The impacts of the COVID-19 pandemic are being tracked and dealt with by financial institutions around the world. They are trying to recognise society and economies' immediate problems and the long-term effect on the integrated financial system. In today's increasingly dynamic operating environment, they are using their experience to support themselves and their clients to make sound decisions.

The world economy is seeing its greatest fall ever. Coronavirus has largely impacted the growth of almost every country and is responsible for the slump in GDP worldwide. Like other countries, India is also impacted by this virus. Almost every industry sector has seen a fall in their sales and revenue. India’s GDP growth has fallen to 4.7% in the third quarter of 2020.

Mahindra & Mahindra Financial Services Limited (MMFSL) is one of them, which is a rural NBFC headquartered in Mumbai, India. It is one of India's largest tractor funders and provides a wide range of financial products to meet different customer requirements. The NBFC has 1000+ offices spread over 1 out of 3 villages across India with more than 4.7 million customers to date.

The outbreak of the Covid-19 pandemic has contributed to a further slowdown in economic activity across the world, which has been at a slow pace even elsewhere. As an entity, they have strictly adhered to government social distance requirements and lockout statements, as a result of which they had effects on business and recovery in the last quarter of the financial year.

In the March 2020 quarter (Q4), Mahindra & Mahindra Financial Services (M&M Fin) reported a 67 per cent year-on-year decrease in standalone profit before tax to Rs 292.5 crore due to Covid-19-led disruptions affecting the company's overall business in terms of lower disbursements and higher provisioning of bad loans or non-performing assets (NPA). The pretax profit reported was significantly lower than analysts' expectations of Rs 567.2 crore, while the net profit fell at a relatively slower pace of 62 per cent year-on-year to Rs 220.9 crore due to lower tax rate.

The vehicle finance major issued Rs 562.6 crore for shocks linked to Covid-19. With this in the March 2019 period, the overall provisions and write-offs during the quarter were Rs 674.1 crore against Rs 114.5 crore of provisioning write back.

Although the 8.4 per cent gross non-performing assets posted by M&M Fin were almost flat at the quarter-ago stage, according to the management, the inability of the company to recover the dues in March affected reported NPAs of about 1.5 per cent. In terms of recovery, the March quarter is usually good for M&M Fin. According to the company, during the analyst call, about 75% of the company's customers have used the moratorium and at least until July it does not expect any substantial business.

M&M financial service stock Surge despite of COVID-19

Mahindra & Mahindra Financial Services Limited informed the exchanges that the firm expects market volumes and collections to be much lower than the previous year in the current financial year.

As of March 2020, the effects of Covid-19 resulted in the closure of all branch offices, market and recovery touchpoints of the organisation and completely halted field operations.

Operations progressively resumed at its Pan-India offices in mid-May. The company expected to see a rise in digitally activated loans and collections even in rural and semi-urban markets. Demand and funding are expected to grow for Pre-Owned Vehicles and Agri Machinery (Tractors).

The Moratorium guidelines announced by the Reserve Bank of India (RBI) resulted in nearly 75% of its clients opting for Moratorium on their EMIs, affecting the daily cash flow and liquidity of the firm. The new company was slightly smaller than the previous year's volumes in April and May 2020. The moratorium has been extended from June 2020 to August 2020 by RBI for another 3 months.

However, in some areas, segments and products, the Company saw improved collections. The Company expected to normalise business activities only after the moratorium term, that is, from September 2020 onwards. However, repayment was further postponed for heavy commercial vehicles and aggregator taxi segments.

As of 31 March 2020, the company retains very healthy capital adequacy of 19.6 per cent as opposed to a 15 per cent regulatory minimum. The organisation has ample capital and financial resources to operate its business, A plan to issue equity shares based on rights to its current shareholders for a sum not exceeding Rs3,500 cr has been accepted by the company's Board of Directors.

ICICI Direct has granted Mahindra & Mahindra Financial Services a purchase rating with a target price of Rs 132,50. The share price decreased by 0.58 per cent compared to its previous close of Rs 129.25. The latest price traded on the stock is Rs 129.20. The company reported consolidated revenue of Rs 3056.62 Crore for the quarter ended 30-06-2020, down 1.43 per cent from last quarter Sales of Rs 3101.00 Crore and up 8.32 per cent from last year same quarter Sales of Rs 2821.88 Crore Company reported a net after-tax profit of Rs 418.70 Crore in the last quarter.

M&M financial service standalone net sales at Rs 2612.88 crore, up 5.09% from 2486.37 crores in September 2020.

The company has introduced numerous cost rationalisation initiatives and expects a benefit from the same in future. In future periods, the company expects output to steadily improve after the lockdown is lifted pan-India and economic activity returns to pre-COVID-19 levels.

Upsurge of Gland Pharma Market Value in Tough Times By: Anish About the Company Gland Pharma was established in 1978 with the support of China-based Shanghai Fosun Pharmaceutical Group Co Ltd. They create injectable drugs and sell those products across 60 different countries. The company mainly works in the B2B segment and deals with complex injectables in collaboration with drug makers like Sagent Pharmaceuticals Inc and Apotex Inc. In the current financial year, revenue stood with a huge amount of Rs 2,772 crore and net profit at Rs 773 crore.

This company makes it to the list of record companies in the Healthcare and Pharmaceutical sector in Asia. This is because of the investor’s interest in this sector amidst the COVID-19 pandemic. The IPO listing of 650 crores is the largest done by any Pharma company. It is a niche player concentrating on injectables. The promising future of the Pharma industry drives the interest of the investors. In FY 18-20, the revenue of Gland Pharma has increased with a CAGR of 27% along with an increase of PAT by 55% CAGR. In FY 20, this company shows a PAT of 773 crores on total revenue of 2,663 crores. This brings an EBITDA margin of almost 36%.

Company Analysis of Gland Pharma The company follows a robust B2B business model spread across countries like Australia, Europe, Canada, etc. It bears a track record of building complex injectables, manufacturing, and close relationship between technical and regulatory processes. As per the data available till March 31, 2020, the company had almost 265 ANDA fillings in USA. Among these, 204 has the approval from States and 61 is still waiting for approval. Gland Pharma has the B2B model which comprises IP led, technology transfer, and contract manufacturing models along with the B2C model in the parent region, India. In the Fiscal year of 2020, revenue coming from B2B model constitutes 95.99% of the total revenue from operations. Revenue generated from the sale of goods and services covers a considerable portion of revenue from operations. The amount generated from sales of service covers 9.49% of the total revenue coming from operations in Fiscal 2020.

B2B IP led model generates gross revenue of 65% while another B2B tech transfer model generates gross revenue of 55%. There is a gross difference of 10% between these two models.

Financial Overview Revenue The revenue which is coming from operations has increased by 28.81% that culminates in a value of 26332.40 million in the Fiscal year 2020. This takes place owing to the increase in sales of goods by 30.35% to a value of 23,219.58 million in FY20. Primarily this surge in sales took place because of the increase in export sales like USA and Canada. Apart from this sale of service value increased from ₹2118.55 million in FY19 to 2498.22 million in FY20. Other operating income rose to a value of ₹614.60 million in Fiscal 2020 from ₹510.56 million in Fiscal 2019.

Expenses ITEMS

2019 (Millions)

2020 (Millions)

Total Expenses

14234.10

17795.42

Cost of Materials Consumed

9548.91

10902.54

Purchase of Traded Goods

162.84

186.73

Employee Benefit Expenses

2229.49

2776.62

Depreciation Expense

819.59

945.87

Tax Expense

2344.50

2200.08

Profit after tax (PAT) increased by 71.02% to `7,728.58 from the previous fiscal year. We saw an improvement in margin owing to benefits from operational leverage. There were no significant borrowings and limited increases in depreciation. Capital expenditure related to purchasing of property, plant, and equipment including right-of-use assets accounted for 1,946.62 million. All the capital expenditure related funds were generated from internal accruals.

IPO Launch and Share Price Details Shares of Gland Pharma shoots up with their debut after their initialization of IPO to a value of almost 23%. Ahead of IPO, the funding of Rs 1,944 crores is done through anchor investors with the sale of shares at 1500 per share. These major anchor investors include Government of Singapore, Nomura, Goldman Sachs, Morgan Stanley, SBI Mutual Fund, Axis Mutual Fund, SBI Life Insurance Company and Fidelity.

IPO DATE

NOV 9, 2020 - NOV 11, 2020

ISSUE SIZE

Rs. 6479.55 Cr

MARKET LOT

10 SHARES

IPO PRICE

Rs. 1490 TO Rs. 1500

MINIMUM APPLICATION

LOT

MAXIMUM APPLICATION

13 LOTS

Share Holding Pattern Post-IPO As per the current shareholding pattern of Gland Pharma, about 74% of stake lies in the hands of Shanghai Fosun Pharma, through its subsidiary Fosun Pharmaceuticals Pte which is estimated to end at holding up to 58% stake, post IPO. With almost 12 IPO’s launched in this odd year with a total issue size of Rs. 24977.52 Cr, Route Mobile Ltd, and Happiest Minds Technologies Ltd have shown some good responses amongst the investors since their inception, with currently trading at a price of more than Rs. 900 and Rs. 300 respectively whereas some of the famous names such as SBI (IPO of Cards and Payment Services) and Mindspace Business Parks are trading at a comparatively lower price and have not provided higher profits like the previous ones.

Financial Summary of Gland Pharma Ltd Here is a comparative overview of Gland Pharma stock on March 19 and March 20.

Performance Analysis and Company Statistics

How Gland Pharma makes a robust opening?

Gland Pharma began with a strong position on BSE and NSE. The share value jumps up to Rs 1850 in BSE up to 23% in comparison with the issue price of 1500. The company's â‚š6,479.5crore initial share-sale received bids for 6,21,55,670 shares as against 3,02,37,879 shares on offer. This makes the subscription 2.6 times. It has the impeccable record of generating profits with a stable compliance history. Company is yet to receive a negative USFDA report and it has a promising future with 215 approvals out of 267 ANDA fillings. Qualified Institutional Buyers (QIBs) was subscribed 6.40 times, the non-institutional investors getting 51% and retail individual investors with a share of 24%. IPO comes with a fresh issue of 1,250 crores and an offer for sale of 3,48,63,635 shares. These Fresh Issue of shares will be used further for capital expenditure, working capital, and general corporate purposes as mentioned in the draft papers.

Gland Pharma to utilize the Strength of Fosun Pharma for Substantial Growth Company will take the stage off to duplicate its injectable capacities after Fosun Pharma occupies 74% of the stake. The product portfolio of Gland Pharma will view a rise along with regulated markets where it will move ahead after the fast-growing biosimilar drugs for various diseases. Now, Gland with a phenomenal sales record of Rs 1500 crore and EBITDA of Rs 649 crore. This mainly triggers to double its top line with a 30% EBIDTA margin.

Rise of Premium in the Grey Market Shares are available at a premium price of Rs 120 per share in the Grey Market after the listing is announced. If we observe the premium trend of more than 2 weeks, it signifies the volatility in the grey market price irrespective of the equity market scenario and stable FII inflow. Gland Pharma shows a premium of Rs 150 which multiplies to Rs 170. After that, it gradually shows a decline of Rs 25 on November II. Then again it rebounds back to Rs 50 on November 12 and then moves to Rs 120 on November 17.

Stellar Market Growth of Pharma Sector Amidst Pandemic The pharma industry in the wake of COVID 19 has accelerated quite a bit owing to the huge Healthcare demand. Nifty value of Pharma jumped up to 83% from its lowest point of 23% in the March quarter. Gland Pharma will leverage the net profits from the fresh issue of capital for the purpose of funding incremental working capital requirements and general corporate purposes. However, promoter as well as selling shareholders will receive offer for sale.

Company has some plans to expand its footsteps in certain regions and welcomes inorganic opportunities. This Fosun promoted IPO managed to make its way through the support of retail and HNI (High Net Worth) investors. As per the expert’s opinion, this success will facilitate more valuation as well as a healthy growth rate.

Dabur By: Supriya I used to consume Chyawanprash since my childhood tough I hated it but my mom used to convince me to possess it daily for better health. Likewise, everybody has experience with Dabur. So, Dabur is a familiar brand for all of us, isn’t it?

Dabur India Ltd is one of India’s prominent FMCG Companies with a market capitalization of over Rs 48,800 Crore and Revenues of over Rs 7,680 Crore. The estate of quality and involvement of over 135 years, Dabur is India’s utmost Trusted Name and therefore the World’s Largest Ayurvedic and Natural Health Care Company.

The brand Dabur conveys Ayurvedic and Indian heritage, and a strong sight of pride about the government initiative ''Made in India, by Indians, for Indians. Spotlighting the Indian roots of Dabur and135-year-old heritage of caring for each Indian household’s health and well-being Evaluating customer requirements through COVID-19 has prompted a slew of companies to look at ayurvedic products. Also, with the recommendations by the government for people to consume Giloy and turmeric to prevent infection, demand for ayurvedic products has increased.

NEW PRODUCTS To capitalize on the demand for healthy products, fast-moving consumer goods company Dabur launches its new product to tap demand as people become more health-conscious during the pandemic thus launched tulsi tonic in April, aside from herb churans. It also launched a vegetable washing product, sanitizer, Dabur Amla Juice, Dabur Giloy-Neem-Tulsi juice, and Dabur Immunity Kit, to name a few during the lockdown HOW DID DABUR COPE UP WITH E-COMMERCE BECAUSE OF THE LOCKDOWN RESTRICTIONS AND NOW HAS BECOME A WAY OF LIFE WITH ONGOING SOCIAL DISTANCING? The E-commerce Sales for Dabur almost doubled in Q4 of 2019-20 fiscal and incorporates a saliency of 3.1% now as compared to 1.3% a year ago. E-commerce was the quick medium to reach out to consumers, particularly when the lockdown is in place. This is often the rationale Dabur chose to launch Dabur hand sanitizer and several other new Preventive Health Care products through the e-commerce route and supported them with special campaigns on Digital media. This helped Dabur to achieve the consumers faster and meet their growing needs during the lockdown period.

In line with this changing demand pattern, Dabur has developed a robust pipeline of innovations to deal with the growing consumer need for Preventive Healthcare and personal Hygiene. Dabur has formerly unrolled a ream of innovations within the Preventive Healthcare space with the launch of immunity boosters like Dabur Tulsi Drops, Dabur Amla Juice, Dabur Giloy-Neem-Tulsi juice, and Dabur Immunity Kit, to call a couple of. Besides, the corporate has also ventured into the personal & Household Hygiene space with the launch of hand sanitizers, air sanitizers, and disinfectants under the Dabur Sanitize brand. Going forward, Dabur will maximize the emerging tailwinds and therefore the distribution might to further strengthen its position as a frontrunner within the Ayurveda products market With the lockdown easing, Dabur has been at the forefront of delivering authentic Ayurvedic solutions to fulfill the emerging Health Care needs of consumers within the post-COVID market. Demand patterns have also commuted remarkably, with consumers progressively seeking Ayurveda-based interventions for enhancing their immunity, besides products that meet their personal and household hygiene needs. Dabur, as the world’s prominent Natural and

Ayurvedic healthcare company, is strong placed to fortunately tap the efflorescent growth opportunities in Health Care and convey profitable volume-led advancement within the upcoming quarters.

SUPPLY CHAIN ISSUES BEING FACED BY COMPANY DUE TO THE LOCKDOWN RESTRICTIONS? Supply Chain continues to be impacted because of the non-availability of trained manpower and truck drivers following the exodus of migrant workers. As a result, companies face difficulty in ensuring the sleek functioning of the whole Supply Chain with the movement of materials, be it raw material, packing material, or finished products, facing bottlenecks

WHAT IS DABUR STRATEGY TO SCALE-UP PRODUCTION AND RESTARTING THE MANUFACTURING CAPACITIES? Dabur plants are operational now and operating at two-thirds of their Operating Capacity.

Availability of manpower continues to be a challenge due to the exodus of migrant workers and Dabur is currently trying to rope local workmen from nearby areas around its manufacturing units, and even pursuing acceptance for inter-state transportation of workers.

The requirement for immunity-boosting products is overt from Dabur’s healthcare portfolio, which subsidizes 38 percent of its total sales. Within the first quarter of FY21, Dabur, in its results, had indicated that Glucose and Chyawanprash boosted the healthcare portfolio.

In Q1 (Apr-June) of FY21, its healthcare business grew by 29.2 percent YoY to Rs 532 crore, but its other businesses like the home and personal care segment registered a 14.9 percent decline YoY at Rs 679 crore and foods division saw a 34.4 percent fall at Rs 203 crore within the quarter.

Even within the second quarter of FY21, the corporate reported robust healthcare numbers.

According to the announcement, the robust performance was driven by demand for its ayurvedic healthcare, hygiene, and nutrition products.

The immunity-boosting products proceed to be the outperformer for Dabur. This is often also in line with our strategy of focussing on the buyer health categories, The Health Supplements line for Dabur announced a 70.8 percent hike amid Q2 of 2020-21.

The ayurvedic OTC range grew by over 56 percent while the Ayurvedic Ethical business ended Q2 with an over 26 percent growth.

HOW DID DABUR MANAGE EXPENSES DURING THE LOCKDOWN Dabur didn't lay off its employees nor cut the salary of the workers, however, does reduced television ad spend. TV ads were aired on news channels, and through the telecast of 'Ramayana' and 'Mahabharata' to reach consumers. Thus supported its employees during the lockdown CONCLUSION Dabur is progressing on its new strategy to navigate the new normal and switch the challenges into opportunities, Dabur is already witnessing a robust surge in demand for Health Care products. Dabur is presently perceiving a 400 percent rise in demand for its bellwether immunity promoter Dabur Chyawanprash and an 80 percent improvement in Dabur Honey. As the people are tending towards healthy living amid the Pandemic Dabur will have enormous opportunities to widen their range in healthier products and people will tend to consume healthier products which is the line of Dabur thus it will perform well.

Coca Cola During The Recession By: Mohit Rao During the 2008 recession, there were countless job losses, minimal travelling due to consumers saving on gasoline and several people only sticking to essentials. This took its toll on the beverage industry where many consumers preferred to stick to tap water (in countries where it’s safe) to save on anything seen as unnecessary. The recession affected consumer buying behaviour throughout the world, though it did impact the durables sector significantly more than other sectors such as FMCG and food and beverages. Coca Cola is the largest nonalcoholic drink manufacturer in the world certainly would not let a recession slow it down.

Here we will look at what exactly makes Coca Cola a recession-proof company.

The Basics Currently with a market capitalisation of about 230B USD and about 37B USD in revenue Coca Cola is one of the biggest companies, not only in its sector but in the world. It can be said that Coca Cola is in the maturity stage of the Product Life Cycle but by no means has it stopped growing with more than 10,000 Coca Cola soft drinks being consumed worldwide per second and over 4000 products and counting under the Coca Cola umbrella.

Coca-Cola is a truly global company since only 20% of its sales come from North America.

The company has a presence in nearly every country in the world except for Cuba and North Korea where its products are still said to be available via the grey market. Coca Cola does not just compete against other drinks in its segment, but against every other liquid including water, with this mentality, they have seen the company holding the top spot in 32 of its top 40 markets around the world.

2008 Recession EPS Coca Cola was able to show its backbone and keep its customers happy during the 2008 recession. Listed below are Coca-Cola's results for adjusted earnings-per-share before, during and after the 2008 recession.

• 2007 adjusted earnings-per-share: $1.29 • 2008 adjusted earnings-per-share: $1.51 (17% increase) • 2009 adjusted earnings-per-share: $1.47 (2.6% decline) • 2010 adjusted earnings-per-share: $1.75 (19% increase) • 2011 adjusted earnings-per-share: $1.92 (10% increase) • 2012 adjusted earnings-per-share: $1.97 (2.6% increase) While adjusted earnings-per-share did drop slightly from 2008 to 2009, Coca-Cola saw total profitability increase immediately after post-2009. The company then saw steady increases in its adjusted earnings per share every year after 2009 as the economy began to stabilise postrecession.

Let's Talk Dividends Warren Buffett, the legendary investor and CEO of Berkshire Hathaway famously consumes 5 cans of Coke per day. Buffett first started buying Coke shares in 1988 and had purchased 23.35 million shares worth 1.8B USD by the end of 1989. Coca-Cola Company has been able to pay out dividends since 1920 and has also been able to increase dividends for 57 consecutive years.

Whether in a recession or not Coca Cola has made sure that shareholders see a growth year on year. Listed below are Coca cola’s dividend rates during the 2008 recession period.

• 2007 Dividend $0.68 • 2008 Dividend $0.76 • 2009 Dividend $0.82 • 2010 Dividend %0.88 Due to performances such as this even under trying periods such as recessions, Coca Cola has been dubbed as a dividend king. Dividend Kings are S&P 500 companies who have increased their dividend for 50+ consecutive years. There are only 29 companies that qualify for the Dividend Kings List for their consistency and Coca Cola is one of them.

Even during an economic standstill Coca Cola managed to increase the dividends it paid out and it is easy to see why a legendary investor like Buffett put so much faith in them in the past.

Currently, Coca Cola is paying out an annual dividend of $1.64 per share.

Promotions during the recession Being one of the biggest companies in the world Coca Cola is known to spend huge amounts on advertising. Found below are Coca Cola’s costs before, during and after the recession period.

• 2007 $2.774B spent on advertising • 2008 $2.998B spent on advertising • 2009 $2.791B spent on advertising • 2010 $2.917B spent on advertising • 2011 $3.356B spent on advertising As seen above, a recession did not stop Coca Cola from keeping its worldwide advertising budget at a steady rate. Coke continued to pump out colourful advertisements and reward systems across its operating countries and remained well ingrained in the minds of the people even during tough times economically.

Clever Advertising Coca Cola has one of the most successful marketing mix strategies in the world. Coke made several plans to influence the individual decision-making processes of its customers. Coke continuously added loyalty reward systems such as winning a chance to watch a sports match or music concert live when buying a bottle of Coke. Coca Cola also developed new, eye-

catching bottles by changing the shape and packaging as seen with their famous Christmas Celebration Coke bottle. Coca Cola has also been able to trap consumers into purchasing only coke products by getting many businesses to only sell Coca-Cola drinks. Additionally, CocaCola has even been endorsed by many restaurants including Mc Donald’s and other businesses, where they have put in place formal agreements between the two parties to only sell Coca-Cola drinks.

Being able to have such a strong impact on the consumers’ decision-making process has seen Coca- Cola create a solid fanbase.

Santa Claus before and after Coca Cola’s influence

From influencing the colour of Santa Claus to acquiring major players in the industry such as Thums Up in India, Coca Cola has seen itself on top for decades. Coca Cola has performed during several recessions and has also acquired the moniker of Dividend King in the process.

They most definitely sell happiness, especially from the shareholder's point of view!

Blooming in Crisis- The Tale of HUL By: Rashika “September and October of 2008 were the worst financial crisis in global history including the great depression�. - Bill Bernanke, Former Head of Federal Reserve The collapse of the sprawling global bank, the Lehman Brothers. Bear Stearns acquired for $ 2 a share against its 52-week high of $ 134 a share. The acquisition of Washington Mutual the largest savings and loan company by JP Morgan Chase.

These are just the three disastrous casualties of one of the worst financial crises ever which brought the global economy to its knees.

Infamously known as the Global Financial Crises (GFC) or the subprime mortgage crisis, the worldwide financial crises of 2007-08 caused severe contraction of liquidity in global financial markets, threatened to demolish the financial order, and caused several banks and financial institutions to almost close the shutters. It was touted to be the worst economic downturn since the great depression.

But how did it start? What are the factors that led to this disastrous outcome? Let us go back to the year 2001.

The Start of the Fall In the year 2001, the Federal Reserve the apex bank of the USA anticipating a recession lowered the federal fund rates (the interest rates that banks charge from each other for overnight loans of reserves kept with the federal bank i.e., is the fed reserve) from 6.5% to 1.75% between May and December, almost 11 times. This significant decrease led to an overflow of cheap credit in the market and allowed banks to lend at lower interest rates to their customers. The customers decided to take advantage of the opportunity at hand and purchase durable goods on credit. The housing market especially saw a huge buying spree. Lenders then sold those loans onto Wall Street banks, which packaged them into what was billed as low-risk financial instruments such as mortgage-backed securities and collateralized debt obligations (CDOs) which led to the development of subprime loans. Eventually, the interest rates started rising and the housing market reached a saturation point. By 2004, 69.2% of US citizens were proud homeowners but after 2 years i.e., in 2006 the home prices took a massive dip of nearly 40%.

By the end of 2007, one subprime lender or another was filing for bankruptcy. The winter of 2008 saw the United States slip into a full-blown recession which was further exacerbated by the September 11 terrorist attacks. In January 2008, the Fed cut the rates by 3 quarters of a percentage point which was its biggest cut in a quarter-century as it sought to slow the economic slide. The crisis led to several bank failures and economies worldwide experienced a slowdown since credit tightened and international trade declined. The U.S. unemployment rate peaked at 10.0% in October 2009, the Figure 1 - World Map Showing real GDP growths in 2009 (Countries in brown highest rate since 1983 and colour are in recession) roughly twice the pre-crisis rate, and the GDP fell to $50.4 trillion by the end of the first quarter of 2009.

The crisis was neutralized only when the wall street bailout package was provided in October 2008 whose passage stabilized stock markets which initiated the longest bull run on record but still the economic damage was immense. Even though the Great recession officially ended in 2009 many ordinary people suffered from its effects for years after as the job market was slow to recover and housing prices remained suppressed.

The impact on the Indian economy was devastating. India was experiencing a slowdown as its economic growth dropped to 7.8%. As the crisis spread its teeth, India saw FIIs withdrawing investment to meet the liquidity challenge in the US. The BSE plummeted from 20,873 on 8 January 2008 to 9093 on 28 November 2008 which was a nearly 56% fall over 11 months. capital inflows under external commercial borrowings, short-term trade credit, and external borrowing by banks dropped sharply from April 2008. The rupee began to tumble from midApril and experienced a drop of over 20%. There was a massive depletion of the stock of reserves from US$ 315 billion in May 2008 to US$ 246 billion in November 2008. Banks resorted to massive selling to wade through the credit crunch in the market. There was a sharp fall of about 35% in 2008 and the industry output also showed a negative growth rate from October 2008. As a result of all this the tax collections also suffered.

Even though the GFC oversaw the closure of huge institutions with massive cash reserves some companies managed to weather the difficulties and emerge victories one such company was Hindustan Unilever Ltd (HUL).

Figure 2 - Credit Crunch and Demand Drop in India due to GFC (Source Reserve Bank of India)

The Crisis Champion – Hindustan Unilever Limited Hindustan Unilever Limited (HUL) established in 1931 is an Indian Fast Moving Consumer Goods (FMCG) and is a subsidiary of the British Company Unilever. Headquartered in Mumbai it is the market leader in over 20 consumer categories with over 700 million consumers using its products.

HUL has seen its fair share of ups and downs but maybe its biggest challenge was yet to come.

The Global Financial Crisis ensured that large parts of the world are in a recession and the global economy which seemed poised for a double-digit growth began experiencing an unprecedented slowdown with certain sectors witnessing deceleration arising from highinterest rates and poor consumer spending leading to a huge cut back on consumption.

When the GFC hit home, HUL realized it needs to up its game. During the crisis of 2008, the company remained a star performer gaining double-digit growth. HUL benefited from the numerous programs and relief packages offered by the government like farm waivers, pay commission, rural employment generation program, and fiscal stimulus packages especially in the FMCG sector.

The government and the RBI implemented various measures like interest rate cuts and other such monetary measures to boost liquidity and generate demand. Thus, the FMCG market did not experience a slowdown and HUL was able to sail past the crisis reasonably well. Even though there was no increased buoyancy in consumption there was no negative growth as well.

Consumer spending in FMCG continued and since half of the company sales came from rural areas which happened to be insulated from the global financial crisis and is not generally dependent upon debt or stock markets. Categories like shampoos, toothpaste, skin creams, and tea showed good growth. Average consumer prices continued to increase for most of the company’s categories particularly in soaps and detergents which experienced high input cost led to inflation throughout 2008. The price increases helped offset the surge in costs of HUL which helped it boost its growth. The increase in average price did not negatively impact the growth prospects of the company. The FMCG sector was reported to be growing around 25% in December of 2008. The net sales of the company grew by 17% and the FMCG business grew by 21% in 2008.

The volumes of the company grew well and the personal care or personal wash or skin cleansing was also led by Lux, Lifebuoy, Dove, and Pears which grew by 11%. The oral health care category grew by 12%. Segmental profit grew by 24% despite the inflation and this has augured well for the business and the consumer in the future. Even on the food and beverage business front, the company experienced a strong growth of 23% backed by strong volume growth with its food processing business gaining good momentum.

Figure 3 - Return on Net Worth, Return on Capital Employed and EPS

Rolling out formats such as Go to Market model and 'War on Waste' is Return on Marketing Investment (ROMI) stimulated the company’s commitment towards its cost-cutting measures.

The company strived towards developing an advanced mix of marketing modelling techniques that allowed the company to assess all the levers for superior yields and greater growth.

Aggressive cost-saving projects, judicious price increases helped mitigate the impact of the crisis for HUL. The diverse brand portfolio and the strong volume growth especially in the rural markets helped HUL wade through the crisis and emerge victoriously. The company also banked on several cost reduction options such as bowing out of SKUs which were detrimental to its growth and introduced new formats for existing brands like Pepsodent. Thus, leveraging all factors and relying on its strong consumer base helped Hindustan Unilever Limited (HUL) to become one of the bright spots in an otherwise grim global situation.

Brene Brown had once famously said – Creativity is the way I share my soul with the world.

It seems HUL did just that and turned a wrenching crisis into an ocean of abundant opportunities.

Bharti Airtel, Defying the Tough Phase of Time By: Abdullah COVID lockdowns were very challenging for businesses. Many companies were struggling to survive and lots of companies have closed their businesses. Amidst this tough time some companies were performing well and had minimal effect of lockdown on their operation and revenue, one such company is Airtel. The Telecom industry witnessed a huge breakthrough during this challenging time like there has been a significant increase in the number of subscribers, telecom providers trying to improve their infrastructure, 5G network trials, and a majority of companies shifting their workforce from conventional working in the office to online work from home. It was also seen that consumer spending on telecom services increased by 16.6% in April –June quarter. All these changes in the telecom industry benefited Airtel.

All these changes made investors believe that the telecom industry would boom in the coming days and they started investing in Airtel, which is the only best performing Telecom Company in India, listed on the stock exchange.

Now, we will see the factors that influenced Airtel to perform better. The first factor is government allowed ground staff to continued access to towers for maintenance in lockdown and this helped Airtel to solve local level hindrances and manage tower capacity. The second factor is the increasing demand for internet services. Due to lockdown companies across all industries made their employees work from home, because of this factor number of subscriptions increased, and consumer spending on telecom services increased. It was also seen that there was an increase in subscriptions of OTT platforms like Netflix and Amazon prime, which led to decreased download speed, but Airtel was quick to respond and increase network capacity.

However later Government made OTT service providers switch to a lower definition streaming. The last factor is the impact of tariffs, India has the lowest tariff rates in the world and it can be easily accessible by lowincome subscribers. These factors paved way for Airtel to not only retaining their present customers but also adding a few new customers.

The impact of all the factors above was seen in Bharti Airtel’s quarterly results for two consecutive quarters Q1 and Q2 respectively. In June-Q1 the revenue was 15049.20 crore and in September Q2 revenue was 16011.40 crores. The results of Q2 were quite impressive for the telco. Their revenue was up by 22% when compared to last year. They added 13.9 million users. This is the highest customer base increase rate in the last 2 years and it is also seen that present customers have moved to higher-paying plans. This helped Airtel to increase its average revenue per user (ARPU) to 3 year high of Rs 162 from Rs 157 in the previous quarter.

Operationally, Airtel's business is growing strong for the past three quarters. The data consumption rate of Airtel grew by 58% on- year and this shows the strong engagement of customers towards telco. Although Airtel has 73% of India's quarterly revenue through mobile services, they have seen significant sales raise in their home broadband, direct to home, and

enterprise services. The data shows that their earnings before interest, tax, depreciation, and amortization (EBITDA) margin expanded to 46% from 44.4% last year. These were the few financials Airtel has improved when compared to the past.

Now, we see how Airtel’s positive financial run impacted its shares prices in the stock market.

Presently, the shares of Airtel are trading at Rs 503.05. The day when the lockdown was announced, the share prices of Bharti Airtel were trailing low at Rs 400.15 at NSE. When the lockdown was announced, the share prices of Airtel started to rise, and at a point of lockdown, Airtel's share price was as high as Rs 598.80. This tremendous rise in share prices indicates that investors believed that people would surely use their mobile phone and internet services to connect with their relatives during those tough times. Many top brokerages like Emkay Global Financial Services, Motilal Oswal Financial Services gave Airtel a "buy" recommendation and had given a target price of Rs 690. They believe that the present trend will continue where subscribers from Vodafone-Idea will shift to Airtel.

During the lockdown, Airtel had tied up with Apollo Hospital group and launched an AI-based digital tool that enabled Airtel’s customers to check their Covid19 risk profile accurately and take appropriate action. This test required users to answer a few questions and with the help of their response, the tool generated a risk score and suggested follow-up action that needs to be taken. This was the innovative tool to stop the spread of Covid19. This was also a reason for Bharti Airtel's stock price increase during the lockdown.

Airtel's good financial health, the importance of the telecommunication industry, fewer competitors, Airtel's collaboration with Apollo Hospitals, good customer service, fast connection delivery rate, and fast internet speed were some of the key reasons for the telco’s better performance. It was also seen that they have a low call drop rate when compared to its competitors, which is around 0.3% on voice call networks.

Although Airtel survived the wrath of harsh lockdown with minimum effect on its business, there are still a lot of factors where Airtel is not performing well. Some of the factors are increasing debt of the company, High-interest payment compared to earnings, slowly declining customer base, and declining cash flow from its core business. The telco is not able to control its piling debt. They have reported net debt of 88,251.2 crore, which is very huge when compared to their reported earnings. Keeping their long-term finance aside, Airtel was good in managing their finances along with providing the best service, considering pandemic of such a large scale. Airtel was able to survive in the best possible way, where its competitor VodafoneIdea is still struggling to revive its business.

Bajaj Finance Limited By: Dishant “Money Has Never Changed Anyone, It Just Magnifies Who They Are.” -Baylor Barbee

Bajaj Group Structure consists of Bajaj Holdings and Investment Limited, Bajaj Auto Limited, Bajaj Finserv Limited, Bajaj Finance Limited, Bajaj Housing Finance Limited, Bajaj Allianz Life Insurance Company Limited, and Bajaj Allianz General Insurance Company Limited.

Bajaj Finance Limited is a subsidiary of Bajaj Finserv, an Indian Non-Banking Financial Company (NBFC). The company was incorporated as Bajaj Auto Finance Limited on 25 March 1987. The company deals in consumer finance, small and medium-sized enterprises, commercial lending, and wealth management. The company was going very well in the past years. It also witnessed a CAGR of 18% increasing their share in total credit. The company has innovative offerings to their customers like home loans, business loans, and personal loans due to which, it also shows a growth in the Indian Economy.

Time of Demonetisation On 8 November 2016 the government decided to ban all currency notes of higher denomination of Rs 500/- and Rs 1000/- from midnight. This decision of the government created huge pressure on the banking system as well as all the economic activities.

How Demonetisation Affects Bajaj Finance Limited?

Bajaj Finance Limited, one of the fastest-growing Non-Banking Financial Company (NBFC) was majorly affected due to the demonetization. There was a huge impact on the company’s portfolio.

The company faces lower growth in disbursements which would be restricting the increase in the company’s profits. 8.6% of the company’s loan was affected due to demonetization. The segments of the company i.e., two/three-wheeler finance, consumer durables finance, lifestyle product finance was slowdown. As per the reports of the Q2 of 2016, there was a growth of 13% in comparison to 50% growth in the previous year.

Two/Three-wheeler finance was majorly affected due to demonetization because it was the one where the company has been majorly falling, also two/three-wheeler finance majorly depends

on the cash transactions. The two/three-wheeler finance business was 8% of the Bajaj Finance Limited. Due to demonetization, the collection of instalments has been impacted.

Consumer durable finance was also affected as the electronic/ PDC payment mode of the company’s cash collections fallen 43% after the demonetization. Online mode of payments has been seen a sharp increase but due to the delay in the payments, it has been fallen from 87% to about half. Due to a slowdown in the consumer durable finance, the management decided to cut this business by 18%. Also, there had been a cut of 35% in Q2 of 2016 in the digital product finance business. Home loans, loans against property, personal loans had a huge impact on the disbursements. Seeing all the parameters, the company’s performance was majorly impacted and it was also showed that there will be no growth in the next quarter as well.

Now, as we see the capital market, shares of Bajaj Finance Limited increased by 5.75% in the OctDec Quarter of 2016. The price after the profit was Rs 1053.10/- which means it grew up to 36%. The company’s total income from operations has shown a growth of 31% and 32.6% in the Asset under Management. Net Interest Income has shown a growth of 32.5% in the year. There was a fall of 1.47% in asset quality because of this net non-performing asset also shown a fall of 0.39% in the Q2 of 2016.

Demonetisation As we can see that due to the demonetization, Bajaj Finance Limited was majorly affected.

Due to this, there was a sharp fall in the profits of the various segments in the balance sheet.

There was a sharp fall in the Small and Medium Enterprise borrowings due to the slowdown in the business activities. It was the one that was highly impacted as liquidity if cash was severely affected. 92% of the Business came back to normal as there was an increase in digital payments. Gold loans business of the company was impacted because of demonetization and now it’s almost the same as were before. In consumer durable finance, there has been witnessed growth and improvement.

As we can see in the figure, Bajaj Finance Limited – Customer Franchise and New Loans (MM) have increased i.e. Customer Franchise is increased from 16.07% in FY16 to 17.18% in FY17.

New Loans are increased from 6.83% in FY16 to 9.33% in FY17.

Views The figures show us the products of Bajaj Finance Limited. The services which we are provided by the Bajaj Group. As we can see that how demonetization affected Bajaj Finance Limited, this can also happen because of the competition i.e. Kotak securities which were one of the leading and fastest-growing company, but we cannot tell based on one parameter and by seeing the data we can also say that the company has a major fall due to the demonetization in the country.

Asian Paints Limited By: SATYA SREE Asian Paints Limited, is an Indian worldwide paint association situated in Mumbai, Maharashtra. The organization is occupied with the matter of assembling, selling and dissemination of paints, coatings, items identified with the home stylistic theme, shower fittings, and offering of associated services. It is India's biggest and Asia's third-biggest paints company. It is the retaining organization of Berger International.

History The enterprise become began in a carport in Gaiwadi, Mumbai by four companions. It was established in February 1945. During World War II and the Quit India Movement of 1942, an impermanent prohibition on paint imports left just unfamiliar organizations and Shalimar Paints on the lookout. Asian Paints took up the marketplace and specified every year turnover of â‚š23 crores in 1952 yet with just 2% PBT edge. By 1967, it turned into the main paint maker in the nation.

Ownership Structure The company has 12 institutional owners and shareholders that are investing through the Securities Exchange Commission (SEC). The highest stakeholders include Bridge Builder International Equity Fund, and Touchstone Sands Capital Emerging Markets Growth Fund.

During Lockdown There are testing times of covid-19 crisis as the first financial year was unexpected as April was a washout quarter since there was in lockdown since March. In May, there was a lot of pent-up demand which resulted in good business, especially in Tier-3 and Tier-4 cities.

Compared to May 2019, this year I.e., May 2020 business was around 80 percent.

During the financial year 2019-20 income from the procedure on an independent premise expanded to Rs. 17194.09 crores as against Rs. 16391.78 crores in the earlier year - a growth of 4.9%. Indeed, with the absence of pay withinside the definitive fortnight of March 2020, the Company managed to end the year with double-digit volume growth of 11.2% for homegrown business. Against this double-digit volume growth for the year the value growth was in singledigit as they continue to focus on growing the bottom of the pyramid with concentrated push on the up-gradation of emulsions as well as large undercoats market.

Impact on Covid-19 The current demand destruction seems to have had no adverse effect on one of India’s biggest paint maker, Asian Paints, as they decided to give employees a price hike in the present economic crisis due to COVID-19. Since May 2020, the Company started resuming operations in its production plant life and warehouses after taking needful permissions from Government authorities. While other corporates have indulged in pay cuts or have been firing workers as is the standard industry response to survive the plummeting economy, Asian Paints raised the bar of boosting staffs’ morale amid the pandemic gloom. Aside from proceeding with its yearly compensation increases, the firm likewise moved Rs 40 crore into the records of its temporary

workers. Growing its item range into sanitizers rather than the essential cleanliness being energized as a piece of the careful steps taken to fighting COVID-19, the painting creator presently has a more noteworthy portion of the client wallet.

Fight Over Covid Crisis Having its influence in the battle against the Covid emergency, Asian Paints is running after dispatching a total scope of inventive items in its wellbeing and cleanliness portion. The organization is running the 'Protected Painting Campaign' to give individuals certainty that it was protected to get a bunch of painters to get your home painted. One such is the 'San Assured' administration through which individuals can get their homes, workplaces, and shops purified.

The company has also launched an anti-bacterial paint named ‘Royal Health Shield’, which according to Synge, has been in high demand over the last two years.

Helping Hand Hospitalization and insurance, full sanitization facilities for partner stores, and direct cash support are I Having its influence in the battle against the Covid emergency, Asian Paints is running after dispatching a total scope of inventive items in its wellbeing and cleanliness portion. The organization is running the 'Protected Painting Campaign' to give individuals certainty that it was protected to get a bunch of painters to get your home painted. One such is the 'San Assured' administration through which individuals can get their homes, workplaces, and shops purified included in its scope of assistance to the sales channel. Doing its bit in contributing its profits to the weaker sections worst hit by the coronavirus, Asian Paints donated Rs 35 crores toward the Central and State COVID-19 Relief funds.

Dividend During the year I.e., 12 months assessment the Company paid to its shareholders: •

First period in the middle of profit, the dividend of Rs. 3.35 per equity share of the face value of Rs. 1 each in the long stretch of November 2019.

• Second period in-between, a dividend of Rs. 7.15 per equity share of the face value of Rs. 1 each in the long stretch of March 2020.

The Board of Directors at their meeting held on 23rd June 2020 has recommended an instalment of Rs. 1.5 per equity share of the face value of Rs. 1 each as the final dividend for the financial year ended 31st March 2020. The pay-out is foreseen to be Rs. 143.88 crores. The payment of a final dividend is dependent upon the endorsement of the investors of the Company at the following Annual General Meeting (AGM).

Because of the modifications made under the Income-tax Act 1961 via way of means of the Finance Act 2020 dividends paid or distributed by the Company shall be taxable withinside the hands of the Shareholders. The Company will make the payment of the final dividend after the allowance of expense at the source.

Reason Business operations are largely domestic and on account of the sharp fall in crude oil prices, the cost of the key raw materials has decreased which results in a significant improvement in margins for paint companies.

Moreover, the organizations are probably going to pass the advantage to clients to set the brush for a recovery sought after. Rising urbanization and the government's stimulus measures will help to increase demand in the long term.

FINANCIAL TRIVIA

MONEY FOR THOUGHT: The rally, which was hitherto restricted to large caps, has begun to spread to mid-caps and small-caps. But volatility will continue and this will not be completely secular boom. Here are a few guidelines to accumulate small and midcaps in your portfolio: • • •

Check sector indices buy PSU stocks for longer horizon.

Analyse quarterly results to find the growing stocks; book profits regularly.

Avoid markets now if you are averse to regular volatility; not-so-savvy investors have to seek expert advice.

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