GMDC incurs 37% tax on lignite, including VAT and excise duty. According to analysts, in case of 18% GST rate, levies will be reduced by `250 per tonne.
The IPO is priced at 20.7 times its FY17 annualised earnings. Given the strong earnings growth and its growth potential, the IPO appears attractive.
ITC shares added Rs 13 to close at Rs 281.20 on the BSE on Friday, off the day's high of Rs 289.
Sluggish demand and the Real Estate Regulatory Act which is expected to kick in soon, among other things, have made realty investments unattractive, say experts.
The stock gained 18% in just five trading sessions to March 10, ahead of the UP election results, that were declared on March 11, in anticipation of the outcome.
Even though, the company's IPO looks richly valued, investors seeking exposure to the retail sector may consider the IPO given its growth prospects.
Over the years, D’Mart stunned the industry as retail chains backed by corporate houses with deep pockets struggled to break even.
In his late 20s, Noronha was handpicked by ace investor Radhakishan Damani to head his retail venture D'Mart. Damani spotted the young account manager with HUL.
The stock is seeing increased interest from several institutional funds that were massively underweight on it due to the under-performance in the past eight years.
“We will certainly grow at over 20% in our branded apparel business and will reach the double-digit EBIDTA margin in the next 12-24 months,“ said Sanjay Bahl, group CFO, Raymond.
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