Weekly Market Roundup: W1 2021

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Welcome Readers in Year 2021!

Yesterday, I heard veteran reputed investor Mark Mobius advice to young investors- “Young Investors should Study, Study & Study.

Read and learn not only much about economics or the market but as much about the culture, because it would make you creative.

At the end of the day, the most successful investor would be the one who is most creative”

My takeaway and New Year Wish is – I shall allow my creative side to work more this year by writing more blogs about investing.

So I am starting up a Weekly Market Roundup. I would be sharing a few important snippets of what has happened in the market. This would simplify, Demystify, Declutter sectoral jargons and myths in a multitude of sectors.

It will be first released on my channel Sadhan. For staying updated on the market and learning investment please subscribe to the channel by clicking here.

Week 1 ( 2nd – 9th Jan 2021)

WATCH THE VIDEO

Oil & Gas

On Tuesday, Prime Minister Narendra Modi virtually inaugurated the 450-km Kochi-Mangalore natural gas pipeline built at a cost of ₹5,750 crores.

Also Read on FinMedium:  Are Markets poised for a deep cut?

The event marks an important milestone towards the creation of Modi’s ‘One Nation One Gas Grid’ project.

It has a capacity of 12 mmscmd.

Regasified liquefied natural gas (RLNG) has already been flowing from Kochi LNG Terminal of Petronet LNG to Mangaluru (Mangalore Chemicals and Fertilisers Ltd.).

The pipeline will supply environment-friendly and affordable fuel in the form of piped natural gas (PNG) to households and compressed natural gas (CNG) to the transportation sector.

Impact:

  1. GAIL: It shall aid 1.5 MMTPA volume to the total GAIL transmission volume of 15.5 MMTPA, which makes it a significant event for the co.
  2. Petronet LNG: As Petronet owns the Kochi Gas Terminal at a cost of > Rs 4000 cr. But due to low pipeline connectivity, the terminal’s utilization was meager 20% and hence it was dragging the balance sheet. New pipeline to increase utilization to above 30% and t shall increase revenue by Rs. 180 crores per year over 1-2 years as per cos management.
  3. MRPL: The gas started supplying to its Mangalore based plant. Expect Rs. 100-150 crore per year benefit from Kochi- Mangaluru pipeline commissioning
  4. City Gas Distribution cos e.g Indraprastha Gas Ltd, Mahanagar Gas Ltd, Adani Gas & Gujarat Gas Ltd: The government is taking policy initiatives to increase the share of natural gas in India’s energy basket from 6 % to 15 %.The Prime Minister further stated that the government’s focus is to increase the CNG stations to 10,000. Till 2014 there were only 25 lakh PNG connections. Today there are more than 72 lakh PNG connections.
Also Read on FinMedium:  Bharti Airtel Q1FY21 - Webinar Takeaways.

I recommend watching my analysis on City Gas Distribution players, Indraprastha Gas Limited and Mahanagar Gas Limited, here:

Pharma – Lupin

USFDA has issued Observations out for Lupin’s Somerset facility.

The 13 observations in Form 483 issued by the USFDA post the inspection over Sep–Nov 2020 largely pertain to cleanliness and equipment maintenance, lack of training given to employees.

4 of Lupin’s facilities at Pithampur Unit-2, Goa, Somerset, and Tarapur have the Official Action Indicated (OAI) status, and the Mandideep plant has a Warning Letter.

weekly market roundup

I have made a tutorial video while simplifying the complex web of Pharma global as well as Indian regulatory set up which you should watch.

With the USFDA unable to conduct overseas inspections, I expect the resolution of regulatory sanctions to be delayed.

 

Finance- IDFC First Bank

The bank is progressing well in its endeavor to become a retail lender and showing strong traction in growing its retail franchise in terms of both loans and deposits.

The average CASA ratio for 3QFY21 stood at 44.6% v/s 36.5% in 2QFY21

Also, an FPI sold a 5.5% stake in the bank which was bought by reputed DIIs such as Abbakkus, Avendus India, and FPI Morgan Stanley.

Also Read on FinMedium:  Franklin Templeton Response – Subramoney

See you next week!

Thanks for reading!


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Amitabh Vatsya

Amitabh Vatsya

Amitabh Vatsya is an active Investment Vlogger (http://youtube.com/c/Sadhansimplified) | Loves to share his ideas at http://wealthsutra.wordpress.com | Follow him @amitabhvatsya
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