The size of the IPO has been cut to 1.5 crore equity shares after the business raised Rs 454 crore from anchor investors on July 26, a day before the sale was scheduled to commence.
Retail investors’ reserved portion has already been subscribed 5.16 times, while non-institutional investors’ portion has been subscribed 85 percent.
Qualified institutional buyers have placed bids for 10,540 equity shares out of a total of 42.42 lakh equity shares reserved for them.
Glenmark Pharma’s subsidiary seeks to collect Rs 1,513.6 crore through a public offering that includes a fresh issue of Rs 1,060 crore and a promoter offer to sell 63 lakh equity shares.
The offer’s price band has been set at Rs 695-720 per equity share, with the offer closing on July 29.
Company Profile
Glenmark Pharmaceuticals Limited is an Indian pharmaceutical company headquartered in Mumbai, India that was founded in 1977 by Gracias Saldanha as a generic drug and active pharmaceutical ingredient manufacturer; he named the company after his two sons. The company initially sold its products in India, Russia, and Africa. The company went public in India in 1999, and used some of the proceeds to build its first research facility. Saldanha’s son Glenn took over as CEO in 2001, having returned to India after working at PricewaterhouseCoopers. By 2008 Glenmark was the fifth-biggest pharmaceutical company in India.
(Source: Factset)
General Advice Warning
Any advice/ information provided is general in nature only and does not take into account the personal financial situation, objectives or needs of any particular person.
Sustained strength abroad led us to revisit our international unit growth assumptions, pushing us to the low end of management’s 6%-8% guidance over the next few years (6.4%) and raising our fair value estimate to $410 per share from $386. However, we view the market’s reaction as overblown, with the shares trading up 14.5% at the time of writing against our 6.2% fair value estimate lift. The shares currently trade about 30% ahead of our fair value estimate.
In our view, the most impactful earnings discussion pertained to labor market pressure, with management indicating that restaurant margins (24.5%, up 60 basis points sequentially) were largely attributable to understaffing, as even the largest operators are struggling to attract workers in a historically tight hiring environment. The restaurant workforce remains about 10% smaller than its pre-pandemic level, and operators have increasingly leaned on wage hikes, benefits, signing bonuses, and operational efficiencies to fully staff stores. While we expect the best-capitalized operators with strong restaurant margins (like Domino’s) to best weather the storm, we forecast midterm labor costs 150 basis points higher than 2019 (normalized) levels, at 30.5% of restaurant sales.
The firm’s attention to car-side carryout looks strategically sound, with Domino’s using the channel to compete with quick-service drive-thrus without having to pursue more expensive real estate. The channel offers incremental sales, pushes the firm’s digital mix higher, and requires minimal involvement at the point of sale, alleviating pressure.
Company’s Future Outlook
It is expected that Domino’s to benefit from a shift toward lower cost fulfillment channels like the carryout business (and car side carryout) while continuing to automate noncore tasks like closing tills, managing inventory, and benefiting from optimized labor spending via predictive scheduling. Nonetheless, we remain encouraged by the firm’s long-term upside, with our revised forecast calling for 9.5% average system sales growth, 6% unit growth, and 11.5% EPS growth over the next five years.
Company Profile
Domino’s Pizza is a restaurant operator and franchiser with more than 17,800 stores across 90 countries. The firm generates revenue through the sales of pizza, wings, salads, and sandwiches at company-owned stores, royalty and marketing contributions from franchise-operated stores, and its network of 26 dough manufacturing and supply chain facilities, which centralize purchasing, preparation, and last-mile delivery for more than 6,800 units in the U.S. and Canada. With roughly $16 billion in 2020 system sales, Domino’s is the largest player in the global pizza market, ahead of Pizza Hut, Papa John’s, and Little Caesars.
(Source: Factset)
General Advice Warning
Any advice/ information provided is general in nature only and does not take into account the personal financial situation, objectives or needs of any particular person.
, but sales fell by nearly 9% versus second-quarter 2019. Gentex shipped about 2 million less units than it expected at the start of the quarter, which caused diluted EPS of $0.36 to miss the Refinitiv consensus of $0.45.
The industry’s supply chains are in turmoil due to the semiconductor shortage impacting chip availability, but other disruptions unrelated to Gentex, such as foam shortages following Texas winter storms, caused automakers to change production at the last minute or refuse shipment of mirrors because other non-Gentex parts never arrived at the automakers’ assembly plants. This supply problem in our view will improve throughout 2021, and the worst of it is occurring in second quarter and early third quarter.
Gentex’s Revenue Growth
The lost production caused management to issue second-half 2021 guidance that implies lower full-year guidance than given in April. Revenue guidance is now $1.88 billion to $1.98 billion, instead of $1.94 billion to $2.02 billion, and we believe that second-half gross margin guidance of 37.5%-38.5% means April’s full-year guidance of gross margin between 39%-40% is not possible. We agree with management’s optimism around 2022 revenue growth being 10%-15%. Gentex’s cash-loaded and debt free balance sheet make times like this easier to get through management seems to be willing to continue share repurchases and spent $115.9 million on that in the second quarter.
Company Profile
Gentex was founded in 1974 to produce smoke-detection equipment. The company sold its first glare-control interior mirror in 1982 and its first model using electrochromic technology in 1987. Automotive revenue is about 98% of total revenue, and the company is constantly developing new applications for the technology to remain on top. Sales from 2020 totaled about $1.7 billion with 38.2 million mirrors shipped. The company is based in Zeeland, Michigan.
(Source: Factset)
General Advice Warning
Any advice/ information provided is general in nature only and does not take into account the personal financial situation, objectives or needs of any particular person.
In other coronavirus news, Russia’s overall virus cases have topped 6 million, and Turkey’s infections have tripled since earlier this month.
China, the world’s largest petroleum importer, reported 76 new COVID-19 cases, the most since the end of January, amid a surge of local illnesses in Nanjing, in eastern China.
Floods and a typhoon have wreaked havoc on China’s central and eastern regions.
With robust demand in the United States and forecasts of restricted supply underpinning prices, investors are now looking for direction from the Federal Reserve meeting and reports on US oil inventories.
(Source: Factset)
General Advice Warning
Any advice/ information provided is general in nature only and does not take into account the personal financial situation, objectives or needs of any particular person.
For the half-year ended December 31, 2020, the gross portfolio return before all fees and expenses was roughly 44.36 percent.
MA1 shareholders unanimously approved the company’s restructuring as an Exchange Traded Managed Fund on May 10th (ETMF).
MA1 was taken off the market on May 28th and will be delisted on June 1st.
Units in the newly formed ETMF Monash Absolute Active Trust (Hedge Fund) are being issued to shareholders on an in-specie basis, with the new ticker MAAT slated to begin trading on the ASX on June 10th.
The ETMF will use a Single Unit (dual registry) Structure, allowing unit holders to buy and sell units on or off the market.
Company Profile
In 2012, Monash Investors was established by one of Australia’s most experienced fund managers in Simon Shields, the previous head of equities at both UBS and CFS, and Shane Fitzgerald a senior equity analyst from UBS and JPMorgan. The firm was set up to manage money in a way that both Simon and Shane felt was simply smarter than riding the share market up and down, instead, attempting to achieve targeted positive returns of double digits p.a. after fees, over a full market cycle while seeking to avoid loss of capital over the medium term. Importantly, it was the experience gained across multiple investment styles and in seeing the pitfalls in managing very large pools of capital that shaped the way the Fund is managed today.
(Source: Factset)
General Advice Warning
Any advice/ information provided is general in nature only and does not take into account the personal financial situation, objectives or needs of any particular person.
We expect high-single-digit growth in utility earnings over the next five years, driven in large part by grid investment at DTE Electric and replacing aging infrastructure at DTE Gas. DTE Electric is also investing heavily in gas power generation and renewable energy to replace its aging coal fleet. We estimate DTE will invest $18.5 billion at its utilities during the next five years in a Michigan regulatory framework that is constructive for investors.
We are less bullish about the earnings contribution from the power and industrial segment as reduced emissions fuel, or REF, earnings decline from the expiration of tax credits. However, we believe new industrial cogeneration projects and renewable natural gas from landfill projects should, for the most part, offset the REF decline. We estimate flat earnings will reduce the segment’s contribution to consolidated earnings from almost 13% in 2021, following the separation of DTM, to less than 10% by 2025.
Financial Strength
DTE’s book debt/capital ratio rose to 61% at 2020 year-end, a significant increase from five years ago when it averaged in the low-50% range. A stable interest coverage ratio during the next five years is expected, with EBITDA/ interest expense over 4 times. On June 24, DTE declared a $0.825 per-share quarterly dividend ($3.30 per-share annualized) on its common stock payable on Oct. 15, 2021, for shareholders of record at the close on Sept. 20, 2021. DTE management has indicated that the DTE dividend plus the DT Midstream dividend will total $4.70-$4.80 per-share annualized starting in the third quarter of 2021. The midpoint of this guidance would represent a 9.4% increase over the previous DTE dividend before the separation of DTM. The current annual DTE dividend of $3.30 per share represents a payout ratio of approximately 60% on our 2021 EPS estimate of $5.51
Bull Says
- Shareholders will receive a dividend increase when the DTE Energy and DT Midstream dividend are combined. It is estimated a 9.4% combined dividend increase, followed by 6% annual increases for DTE from 2022 to 2025.
- Michigan’s aging utility infrastructure needs investment, which will mean regulated growth opportunities for DTE.
- Over the past 10 years, Michigan regulation has been constructive for shareholders and is expected to remain favorable.
Company Profile
DTE Energy owns two regulated utilities in Michigan. DTE Electric serves approximately 2.2 million customers in southeastern Michigan including Detroit. DTE Gas serves 1.3 million customers throughout the state. In addition, DTE has nonutility businesses and investments including energy marketing and trading, renewable natural gas facilities, and on-site industrial energy projects.
(Source: Factset)
General Advice Warning
Any advice/ information provided is general in nature only and does not take into account the personal financial situation, objectives or needs of any particular person.
According to AFIC, the Commonwealth Bank of Australia (ASX: CBA) is the largest current position, followed by BHP Group Ltd (ASX: BHP), CSL Limited (ASX: CSL), Wesfarmers Ltd (ASX: WES), and Westpac Banking Corp. (ASX: WBC).
These top five positions, however, are supplemented by dozens of other ASX shares. And, with the ASX 200 index lately reaching new highs, AFIC would have benefitted from a rising tide lifting its whole portfolio (evidenced by its NTA per share growth).
This is most likely why the AFIC share price has reached an all-time high today. It isn’t the only one. Other LICs in the AFIC mould are also on the rise.
At the present AFIC share price, the organization has a market value of $9.62 billion and a trailing dividend yield of 3.05 percent (or 4.36 percent when AFIC’s full franking credits are considered).
The net tangible assets (NTA) per share increased to $7.45 per share in June (after tax). This is a significant increase over the previous month’s share price of $6.19. This means that for every AFIC share purchased, buyers receive $7.45 in other assets.
Over the last two decades, the AFIC has returned 5.23 percent in capital gains and 6.18 percent in fully franked dividends.
Company Profile
The Australian Foundation Investment Company Ltd (AFIC) is a Listed Investment Company in Australia (ASX: AFI) and it is one of the oldest on the ASX established in 1928. It aims to provide shareholders with attractive investment returns by growing stream of fully franked dividends and growth in investment of capital. AFIC measures its performance through 2 measures namely portfolio return and the shareholders return. AFIC is presently Australia’s largest LIC, managing a portfolio worth around $8 billion for its stockholders.
(Source: Factset)
General Advice Warning
Any advice/ information provided is general in nature only and does not take into account the personal financial situation, objectives or needs of any particular person.