DHFL insolvency a test case for IBC, Subhash Chandra no longer majority shareholder in Zee; all this and more on Moneycontrol Pro

Finally, some great news! India’s fastest-growing financial subscriptions service, Moneycontrol Pro, is available both on the website and mobile apps. Moneycontrol Pro offers curated markets data, independent equity analysis, insights into investment styles and exclusive trading recommendations. In sum, all the information you need for wealth creation. [caption id=“attachment_6847201” align=“alignleft” width=“380”] Representational image[/caption] DHFL insolvency a test (and very difficult) case for the IBC The problems of DHFL are well-known. It started defaulting on its Rs 84,000-crore debt some months ago. A new solution is being tried. DHFL will be the first NBFC to be referred to the NCLT by the banking regulator. This is a new path and DHFL is a difficult nut to crack. To know why and the way forward, read here. Is Subhash Chandra’s stake reduction good news for Zee shareholders? Lenders to the promoter of Zee Entertainment are planning to sell a large stake in the company, in order to recover their money. This is expected to bring down Subhash Chandra’s stake to 5 percent, meaning he will no longer be the majority shareholder in the company. The question is: Like a soap opera on its channels, does this signal the end of Zee’s ordeal or is there a twist in the tale? Read here to find out. Why do gold mutual fund schemes underperform gold ETFs? Over the last three and five year periods, gold ETFs have returned approximately 6.89 percent and 7.20 percent respectively. This is the return over the entire period and not per annum. Over the same time periods, gold MFs returned 6.50 and 6.46 percent. Why this divergence in returns on the same commodity and what does this mean for investors? Read here to know more. Corporate India’s ability to service debt worsens in September quarter In spite of interest rates having come down, corporate India’s ability to service interest on its debt worsened in the September 2019 quarter. Interest cover for the corporate non-financial sector fell to 3 in the September quarter from 3.8 in the quarter ending June. In fact, the interest cover is the lowest since the December 2015 quarter, when too it was at 3. Why is that happening despite consecutive cuts in interest rates by the RBI? Read here to know. Motherson Sumi’s shares fall sharply, recovery depends on demand revival In Q2 FY20, Motherson Sumu’s India business disappointed. While performance was in line with expectations, its domestic business did poorly but was saved by a better showing at its overseas subsidiaries. Still, the near term remains uncertain although the long term factors support a robust outlook. Valuations look reasonable compared to historic levels. Here’s our research analyst’s view on the investment outlook for its shares. Ideas for Profit | Is Indostar Capital’s low valuation justified or an overreaction? As a listed non-banking finance company (NBFC), the last one year has been very stressful for Indostar Capital Finance. Indostar’s business was interrupted by the liquidity crunch that engulfed NBFCs since September 2018. That has resulted in its shares trading at relatively low valuations. What should investors do? Answers from our research team, read here. Technical Picks (Please click on security name to access recos) Divi’s Lab Adani Enterprise BPCL Zee