UNION BUDGET 2015: SHORT ON FAVOURS, LONG ON IMPACT

The Union Budget 2015 may not be considered a ‘dream budget’ by many since no major big bang reforms were announced by Finance Minister (FM) Arun Jaitley. However, he has tried to put his best foot forward by setting a new direction and roadmap as to how things are expected to work going forward. The FM in his budget speech tried to touch upon on almost all sections of society and has given due importance to most of the sectors in order that the Indian economy is come back on track. He has tried to present a budget which seems to be a balanced one, and hopefully will boost growth in a gradual manner keeping in mind the current fiscal position. Considering and combining the overall changes proposed in the direct and indirect taxes, there is expected to be an additional inflow of approximately Rs 15,000 crore into the government’s kitty and this the FM has tried to do by keeping the growth momentum intact and maintaining fiscal discipline. However, many sections in the society have felt left out considering there was nothing for them in this budget. The FM though has introduced many initiatives during this year’s budget which are likely to have a long-term positive impact on tax collections and growth.

Broadly, the emphasis remains on certain key areas which had been outlined in his previous interim budget announced in July 2014; this time though he has extended it to some new areas. The FM has announced the setting up of a committee for the legislation of single-window clearance and this is expected to improve the environment and ease of doing business in India. The FM has also indicated that a direct tax regime will be put in place which is expected to simplify tax laws and improve the tax compliance standard in the country.

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GDP GROWTH, INFLATION, GST IMPLEMENTATION AND DISINVESTMENT

The FM has embraced states as equal partners of growth and for this he has increased the allocation of the total tax pool to states to 62 per cent of the total receipts (Rs 1.08 lakh crore against Rs 79,166 crore under non-plan spend). The FM expects the GDP to grow in double digits in a phased manner with FY16E GDP being in the range of 8.0 – 8.5 per cent. Though the FM expects the CPI to remain near 5 per cent for FY15 and has guided the monetary policy committee to check that it does not exceed 6 per cent going forward, yet, based on the outcome of the budget it seems that the CPI may exceed the 6 per cent mark in FY16.

The FM has also stated that GST will be implemented by April 2016 and according to many industry stalwarts this is expected to increase the GDP by almost 2 per cent once the GST is implemented in totality and completes a full year of regime. The FM stated that the government expects to achieve a fiscal deficit of 3 per cent in three years and this is hoped to be achieved by higher tax collections based on higher economic growth along with disinvestment of the government’s stake in Hindustan Zinc, Balco and SUUTI in FY16 with a total target of Rs 69,500 crore, including Rs 41,000 crore from the PSUs.

BOOST FOR INFRASTRUCTURE

For a robust growth rate on a sustainable basis the country must first have supportive infrastructure and for this the government is focused on improving overall connectivity in the country by laying of additional roads (one lakh kilometers), improving rail network efficiency, privatizing ports, and building new airports. To boost investment in these the FM has permitted tax-free bonds for roads, railways and infrastructure projects. A proposal to set up a National Infra Fund with allocation of Rs 20,000 crore is expected to ease funding issues of large infrastructure projects. The government is also focused on housing for all by 2022 and for this expects construction of houses (6 crore units by 2020) in rural and urban areas with basic and essential amenities like drinking water, electricity, toilets, etc. In continuation of its focus on health and education, the FM stated that the government will open up either AIIMS’, IIMs or IITs in almost each state.

FOCUS ON RURAL INDIA AND SMES

Special focus has been given to spending in rural India (agriculture-driven) as a large portion of the Indian population still resides in this area, along with a major thrust to spur the capex cycle (manufacturing driven) as it will generate and boost employment. For this additional depreciation for new plants and machinery has been increased from 20 per cent to 35 per cent. Rural India is expected to benefit as the government anticipates higher allocation of farm credit and micro irrigation support of Rs 8.5 lakh crore and Rs 5,300 crore respectively for FY16. The SME segment is expected to get a boost as the government intends to make funding easier through the setting up of Mudra Bank with allocation of Rs 20,000 crore.

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BANKRUPTCY CODE AND BLACK MONEY

The FM stated that a bankruptcy code will be set up so that the rising NPA levels in the banking system can be controlled. This is deemed necessary since the situation has been alarming in recent years with certain willful defaulters taking advantage of the situation. NBFCs with size of over Rs 500 crore will get access to SARFAESI; this is expected to help the NBFC in recovery of their non-performing assets in case of any such eventuality. Also, the government intends to boost and incentivize transactions through debit and credit cards as it wants to discourage transactions in cash which lead to creation of black money. The government also proposes to introduce a Benami Transaction Prohibition Bill to curb creation of domestic black money. According to the FM, the Foreign Exchange Management Act will be amended to allow seizure of foreign assets in case black money has been shifted overseas.

GOLD

In order to increase liquidity into the system which gets blocked in the form of physical gold, the government is expected to introduce a gold monetization scheme which will enable investors to earn interest and jewellers to obtain loans. Also, sovereign gold bonds will be introduced which can be considered as an alternative investment avenue in order to reduce dominance on physical gold. The demand for imported gold coins is currently high and to be able to reduce it the FM has introduced Indian made gold coins which will help in reduction of the import bill to an extent.

MISCELLANEOUS

The government intends to extend the Direct Transfer Benefit Programme as it will benefit the needy ones; this is also expected to reduce the subsidy burden gradually as only genuine stakeholders will be entitled to receive the same. In order to provide a boost to the tourism sector the government intends to extend visa on arrival to 150 nations; this will boost foreign exchange reserves in the country.

POLICY AND RATE CHANGES

There have been some changes which are considered to be positive and favourable for the markets as these will bring in more clarity, ease and simplify tax compliance. The FMC has been merged with the SEBI and this will now give additional powers to the latter to safeguard the interest of the investors in the commodities market. Combining the limits for FPIs and FDIs will ensure that the breach of limit will be considered on an overall basis, thereby corporate income tax to 25 per cent in a phased manner (four years) from 30 per cent has brought cheers to FIIs and corporates.

The FM has also abolished the Wealth Tax Act as the tax collection was too minimal as compared to the efforts put in by the tax department. He has instead introduced a surcharge of 2 per cent on income of over Rs 1 crore, which will not only cover the tax foregone on account of the abolition of wealth tax but will exceed the same multifold times. However, increase in service tax to 14 per cent has been a move which has been criticized by most as it will impact the monthly budget without any benefit extended on the exemption limit or slab rates. The FM introduced an additional cess of 2 per cent on services in the name of Swachh Bharat to support the prime minister’s Swachh Bharat Abhiyaan.

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FOR INDIVIDUALS

It seems that there has been nothing on the giving room to either class of investors to invest further. The deferment of GAAR by a further two years and reduction of basic table for individuals as the most watched for exemption limits and slab rates remained unchanged. However, the FM has tried to pass on some indirect benefits by increasing some deductions, as explained in this issue in a separate section.

CONCLUSION

We would advice DSIJ readers to invest in selective companies in sectors such as banking and NBFCs, infrastructure, construction, real estate (affordable housing), cement, building products, etc. based on the outcome of the Union Budget, few of which has been detailed in the following pages.

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Highlights For The BFSI Sector

Financial sector, especially banks, are the lubricant of Indian economy owing to which it functions smoothly and hence it was rightly one of the focus areas of union budget. This budget also initiated long awaited reforms that will help banks and especially public sector banks to function more efficiently. First is the setting up of autonomous bank board bureau that will lead to the holding company structure for state owned banks. This will go long way in improving the efficiency of the banks as it will provide greater functional autonomy to banks and optimise the capital contribution by government. The board will also help to identify and appoint managing directors and chief executive officers at state-run lenders. Th is may help to de-politicise the recruitment of MD and CEOs, and in turn is expected to improve governance of these banks.

Other important announcement made in the budget regarding the financial sector was the inclusion of NBFCs under the purview of SARFAESI Act, along with the new bankruptcy code. A new comprehensive “Bankruptcy Code” will come by FY16 to replace existing laws to strengthen banks against wilful and rogue defaulters and NBFCs with asset size more than Rs 500 crore will come under SARFAESI Act. This will help both banks and NBFCs to deal with their NPA problem in far robust way. The banks will also be benefited by the direct benefit transfers using Jan Dhan Scheme, this will increase the balance in those accounts, many of which are inoperative, will increase transaction and float in accounts. Elsewhere, the hike in the exemption limit for medical insurance premium from Rs 15,000 to Rs 25,000 and Rs 30,000 for senior citizens will help general insurance companies in health space that may garner higher premium income with increase in exemption limit.

Regardless, not everything proposed in the Union Budget in this space is good for financial sector. First is the moving the goalpost that is fiscal deficit target for next year has been revised to 3.9 per cent against 3.6 percent set earlier. Higher deficit can lead to higher government bond yield, which implicates higher interest rates. This is not good for banks in general. The proposed allocation of Rs 7,940 crore to capitalize state owned lenders in 2015-16 is lower than the Rs 11,200 crore alloted for 2014-15 but is higher than Rs 6,990 crore, it has allocated to these banks so far this fiscal year. We believe that this amount is too low and inadequate, given the higher capital requirements to meet Basel III commitments.

How all these provisions are going to impact your holdings of company in these sectors? We are reviewing all our calls in last one year and what readers should do now?

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Bank of India: EXIT

Bank of India was recommended by us in our issue dated December 29, 2014 – January 11, 2015. This was backed by failing bond yield, pick up in the economy and capital infusion by government. However, post this budget we do not find any one of the above factors playing as expected. Recovery in performance will take longer than expected and hence suggest our readers to Exit the counter.

DCB Bank: Hold

DCB was recommended by us in our issue number 12 dated May 19 - June 1,2014 at price of  Rs 64 under low priced scrip. Our readers those who had invested might have doubled their money. We continue to be Bullish on the stock and there is nothing in the budget that will play spoilsport for the scrip.

Lakshmi Vilas Bank: HOLD

Lakshmi Vilas Bank which recently opened 400th branch and 750th ATM was recommended in our issue number 5, dated February 9-22, 2015 under low priced scrip. Although, the share price of the bank has not shown much of momentum till now, we advise our readers to Hold the scrip and budget provisions is not going to impact much to this bank and its inherent strength will help bank to grow.

Repco Home Finance: Hold

Repco Home Finance was recommended by us in our cover story for issue number 21, dated Sept 22 - Oct 5,2014. This was backed by strong presence in niche segment of under-penetrated that offers better growth opportunity and higher yield, strong asset quality and well capitalised to support future growth. Scrip is currently trading at Rs 679, up by 57 per cent. The union budget proposal of Housing for all that will entail two crore houses in Urban areas and four crore houses in Rural areas augurs well for the company and we advise our reader to Hold the stock.

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Highlights For The Real Estate Sector

The real estate industry, which had pinned high hopes on Union Budget 2015 for revival of the liquidity-starved sector, welcomed some of the proposals of Finance Minister, Arun Jaitley, while no direct measures were announced to boost the housing sector, the FM did not forget to highlight the ‘Housing for all by 2022’ mission. Overall, the Budget failed to live up to the expectations of the real estate sector, though the thrust on infrastructure and sustainable economic growth will benefit it in the long run. The budget seems to be aligned with the agenda of Housing for all by 2022. The intention to construct 6 crore housing units for rural and urban India housing by 2020 was a positive move. This will help to fill the huge demand supply gap in housing sector and will make housing the next booming sector in India.

However, the following few announcements will directly or indirectly benefit the sector:

a) Allocation of  Rs 22,407 crore for housing development in the country. This would involve construction of 2 crore urban and 4 crore rural housing units across the country to realize the aim of ‘housing for all by 2022’

b) Introduction of the ‘Benami Transaction Bill’ in order to curb black money in the property market and prohibition of acceptance of an amount of more than `20,000 in cash for any property deals

c) Proposal to overhaul the capital gains taxes to pave way for the listing of Real Estate Investment Trusts (REITs) in the country. The REIT pass through benefits will do good for more investments from REIT for rental, commercial and other properties

d) Construction of 6 crore toilets under the ‘Swachch Bharat Abhiyan’

e) Allocation of Rs 4173 crore for water resources in the country

f) Allocation of Rs 70,000 crore for development of infrastructureroads, rail and agriculture

g) Tax free bonds for infrastructure for roads, rail etc will bring low cost additional debt funds along with Budget funds.

h) Allocation of Rs 1200 crore for the development of the Ahmedabad-Mumbai industrial corridor.

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HSIL: HOLD

The sanitary ware market is witnessing a notable growth, thanks to benefits from government’s focus on sanitation and a rise in the construction of residential and commercial buildings, especially in city areas. Therefore we recommended this stock in our earlier issue and still we remain Bullish on this stock. We believe, HSIL will receive order from the government under Swachh Bharat and even more orders from several corporate to build toilets. 

Kansai Nerolac Paints and Akzo Nobel India: Hold

We have recommended these stocks in our earlier issue due to the falling input costs of TiO2, crude oil prices and hopes of a revival in demand led by economic revival. Under this budget, paint companies will stand to benefit due to the government’s target of 2 crore houses in urban areas and 4 crore in rural India. However, such benefit will be seen gradually over a period. Therefore we recommend to Hold these stocks.

Kajaria Ceramics: Hold

With the government’s initiatives like ‘Swachh Bharat Abhiyan’ and ‘Housing for all by 2022’, we believe Kajaria, being one of the leading player in the industry, is likely to reap the benefits either directly or indirectly. Currently, Kajaria’s cumulative capacity is at 54.1 mn. sq. meters (msm). Going ahead, a pick-up in the housing sector and to grab the opportunity, Kajaria is looking to augment its capacity by 13 msm to 67.1 msm and will get commissioned by 1HFY16. Therefore we recommended Holding this counter with more returns in forthcoming periods.

Highlights For The Power Sector

Finance minister, Arun Jaitley, has again put focus on new and renewable energy and in his first full term budget, he has revised the target of renewable energy capacity to 175000MW till 2022. It comprises of 1,00,000 MW Solar, 60,000 MW Wind, 10,000 MW Biomass and 5,000 MW Small Hydro. Quite in the same way budget has put signifi cant focus on the development of power sector. In a big bang announcement Government proposes to set-up 5 new Ultra Mega Power Projects, each of 4000 MWs in the plug-and-play mode. In his maiden budget speech Finance Minister Arun Jaitley said that all clearances and linkages will be in place before the project is awarded by a transparent auction system. Government is hopeful that this will unlock investment to the extent of Rs 1 lakh crore.

In addition to this all Public sector units are expected to incur a Capex to the tune of Rs 3,17,889 crore during FY16, which is higher by Rs 80,844 crore over FY15 revised estimates, which again is going to help the Indian power sector. FM has also announced that National Investment and Infrastructure Fund (NIIF) with an annual fl ow of Rs 20,000 crore will be set up and PPP mode of infrastructure development has to be revisited and revitalized. These steps will surely help power sector both in conventional and renewable space. Considering this, our previous recommendations will surely garner benefits by these budget announcements.

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These are:

SJVN: HOLD

SJVN is a flagship PSU in hydropower space. It is currently operating country’s largest 1500 MW Nathpa Jhakri Hydropower Station. We have recommended SJVN due to the diversified portfolio it is building by entering into thermal power space and transmission as well. Considering the robust financials of the company and government’s focus towards renewable source of energy, readers should hold this scrip for sometime more to see the positive impact of budget announcement on the ground.

CESC: HOLD

CESC is a RP-Sanjiv Goenka group company operating in electrical and power space. Company has stakes in thermal generation, transmission, distribution and has lately entered into renewable energy space by purchasing one 9 MW solar energy plant in Kutch, Gujarat, 146MW Hydro power projects in Arunachal Pradesh and 24MW wind power project in Dangi, Rajasthan. The announcements in the budget is quite positive for a diversified company that is majorly into thermal power generation, considering the upcoming UMPP. Though power sector was expecting transmission and distribution reforms announcement in the budget, sources has informed DSIJ that soon separate announcements would be made in this regard by the government. Considering this, company like CESC would greatly benefit in medium to long term so investors should remain invested in this stock.

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Highlights For The Automobile Sector

Budget 2015-16 has no direct impact on the automobile and auto ancillary industry as it did not propose any industry specific announcement. The industry was expecting a reduction in the excise duty of the automobiles. However, there has been complete disappointment on that front. However, the other Budget announcements are expected to trigger the demand in the automobile industry. The government has given fixed date for Goods and Service tax (GST) implementation as April 1, 2016. This implementation will see good interest in Indian automobile industry and will fetch good amount of investment in near future. Further, the implementation of GST will increase demand for commercial vehicle particularly long vehicle as localized storages will be absolute.

The government has given considerable thrust on the development of agricultural sector. The good amount of investment and reforms are expected to drive the rural disposable income higher which will create demand for the automobile industry particularly tractors & farm equipments, two wheelers and small size passenger vehicles. Further, the announcement of Rs 70,000 crore investment in infrastructure including construction of one lakh kilometre of rural road will further boost demand in automobile industry.

One of the direct announcements related to automobile industry was the increase in custom duty to 20 per cent from 10 per cent on completely built unit of commercial vehicles. This hike in import duty will help the local manufacturers boost their volumes. The announcement of reduction in corporate tax to 25 per cent from 30 per cent for next year will directly boost the corporate profitability in coming years.

Tata Motor: HOLD

The fixed deadline for the implementation of GST by this financial year 2015-16 is expected to boost Indian commercial vehicle demand in the country. The implementation of GST will create uniform taxation regime across the country eliminating the need of localized storage of the goods by the companies. Additionally, it will enable the producing companies to deliver the goods directly to the retailers end. This very fact will definitely benefit the Indian commercial vehicle leader Tata Motors in forthcoming quarters. Hence we recommend Hold on this stock.

Maruti Suzuki: HOLD

The overall budget is good for Indian economy. The government’s thrust on improvement of agricultural sector in India is expected to fetch good investment across the sector. Further, the Agriculture related reforms are too expected to boost disposable income in rural India’s hand. Increased per capita income in rural India will definitely benefit Maruti Suzuki, the small car manufacturers with long legacy of car manufacturing in India. Hence we recommend the investor to continue to Hold this stock.

Wabco India: HOLD

The increase in the custom duty to 20 per cent from 10 per cent on completely built unit of commercial vehicles is expected to get boost for Indian commercial vehicles manufacturing. The auto ancillary companies supplying to the commercial vehicle OEMs like Wabco India are too expected to experience good traction in coming days. The Wabco India, being leader in the auto parts suppliers for commercial vehicles, is in best place to show better performance in coming few quarters. Hence we recommend to Hold this stock.

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Highlights For The Infra and Cement sector

Finance minister Arun Jaitley announced a significant increase of Rs 70,000 crore along with the risk sharing mechanism for PPP projects; setting up of a National Investment and Infrastructure Fund; deepening of the bond markets etc. will help reviving investment in the infrastructure sector. The money will come from an additional public investment outlay of Rs 1.25 trillion over that of 2014-15. The allocation for roads and railways is Rs 40,000 crore each, an increase of Rs 14,031 crore and Rs 10,050 crore respectively over the current fiscal year.

The finance minister announced the formation of an investment and infrastructure fund and tax-free bonds for raising funds for investment in rail, roads and irrigation. To establish a National Investment and Infrastructure Fund this will find monies to ensure an annual fl ow of Rs 20,000 crore to it. This will enable the trust to raise debt, and in turn, invest it as equity in infrastructure finance companies such as the IRFC (Indian Railway Finance Corp. Ltd) and NHB (National Housing Board). The infra finance companies can then leverage this extra equity manifold.

For the roads sector, the Budget proposals included connecting each of the 178,000 unconnected habitations by all-weather roads. This will require completing 100,000 km of roads currently under construction, in addition to sanctioning and building another 100,000 km.

The government spending on housing and infrastructure will have a direct impact on the cement sector. However, cement prices could go up by Rs 15-20 a bag. The government had announced hike in excise duty on cement by Rs 100 per tonne to Rs 1000 per tonne in Union Budget 2015-16. Earlier, in the Railway, the government had announced hike in freight rates for select commodities including coal, cement, iron ore and steel from 1 April 2015. Cement freight rate was increased by 2.7 per cent and coal rates were raised by 6.3 per cent. Coal is an important raw material used in cement production.

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Ahluwalia Contracts: HOLD

A significant increase in planned public-sector capital expenditure, coupled with measures to increase investment and financing in the private sector, will be credit-positive for Ahluwalia Contracts and companies in similar business profile. We had recommended Ahluwalia Contracts in our earlier issue and still we advise our readers to Hold this stock for a long term.

JK Lakshmi cement & Heidelberg Cement: Hold

Both the cement companies will get benefit as a result of robust cement demand from the housing and infrastructure segment. Higher rural allocation will translate into higher construction activity, thereby benefiting the cement sector on a whole. We are still bullish on J K Lakshmi due to strong volume growth led by capacity expansion. The company is one of the most cost efficient players in the industry as it benefits from captive power, higher usage of pet coke and better utilization level. Heidelberg Cement will also perform in forthcoming periods.

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Highlights For The Travel and Tourism Sector

Meeting some of the expectations of the hospitality industry, MAR 9 - 22, 2015 DSIJ.in 55 Finance Minister, Arun Jaitley in his full year Union Budget 2015-16 announced Visa on Arrival to 150 countries from the current 43 countries in a phased manner. This would indeed boost tourism for the country, which is positive for the hospitality/hotel industry. Arun Jaitley also said the government will invest in heritage sites such as churches and convents in Goa, the Elephanta caves in Mumbai and the Jallianwala Bagh in Amritsar. The government will invest in enhancing standards of security, amenities and illumination. It is a value to the tourists because a lot of these sites are in a bad shape and got no attention in the past. So, it will make access easier and as word gets around, more and more tourists will come. This will have long term implications and it’s a tourism friendly move. Other initiatives such as Swacch Bharat, Clean Ganga, smart city, women safety, and tax benefits to Yoga, needs to be widely communicated to create a positive tourism environment. We have consistently missed the target of 10 million tourist arrivals announced with much fanfare years ago. According to UNWTO, India ranks 41st in international tourism arrivals, and 16th in world tourism receipts. However, the proposed increase in the number of countries under the Visa on Arrival scheme, we can expect, should achieved a target of 10 million tourist arrivals in the forthcoming years. Executed and then marketed rightly, this will undoubtedly attract a new set of inbound tourists to the country. Executed and then marketed rightly, this will undoubtedly attract a new set of inbound tourists to the country.

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Cox & Kings: HOLD

We have recommended these stocks in our Diwali issue due to expecting more tourist inflow from the US due to relaxation in visa rules and to reduced stress on balance sheet. Considering this budget impact on travel and tourisms, we still recommend to Hold this stock due to the government’s increased focus on tourism; and increased utilisation of Menninger business in off season.

Highlights For The Defence Sector

Though Defence sector was expecting some kind of big bang announcement in the budget, it was completed marginally in the budget as government raised the annual Defence budget by 11 per cent. In fact after allowing 49 per cent FDI in Defence few months back, and calling all the industrialists of the country to make most of ‘Make in India’ initiatives in Defence, government seems quite serious about development of Defence sector. Considering this, punters were expecting sharp rise in the Defence spending in the budget, but Finance Minister decided to play it safe by providing Rs 2.46 lakh crore, a marginal increase of 11 per cent over last year budget of Rs 2.22 lakh crore. If we go by FM budget speech then Jaitley clearly said that “Country has been overdependent on imports. We are thus pursuing the ‘Make in India policy’ to achieve greater self-sufficiency in the area of defense equipments.” This is a significant shift of focus of government to Indian defence manufacturer in the time to come, which is quite positive. Also government is mooting a proposal to delink NRI funds from FDI in the matter of Defence sector, and already a cabinet note has been made by Department of Industrial Policy and Promotion (DIPP) seeking cabinet approval to allow NRI’s non-repatriable funds to be considered at par with domestic investment. If it happens, then Defence would be the second sector aft er civil aviation where NRI can invest 100 per cent into the sector. Considering all this, Defence sector seems to be in action in the coming days and our past recommendation will prove beneficial for the investors.

These are:

BEML: HOLD

Few days ago government has lifted ban on UK based Tatra Trucks, hugely benefi ting BEML that has an exclusive pact with Tatra UK to supply trucks to the army. With more investments coming into defence and more foreign players focusing on signing pact with established defence companies in the domestic circuit, BEML may prove to be a lucrative bet for the investors as it is one of the most experienced companies in the Defence sector. So investors should hold this investment for near to medium term and also look for picking up stock if some correction happens.

Bharat Electronics: BUY

BEL is clearly the leader in defence equipment space with most advance equipment portfolio. BEL clearly its favorite as defence is considered to be a complex sector, and foreign partner usually prefer those companies which have necessary domain knowledge and also have government backing. BEL qualifies both these conditions as it handles prestigious Akash Missile project and its profitability is also quite decent at 14 per cent PAT margin. Though company stock showed huge spurt during last 6 months, it corrected a lot after budget due to over expectation and is currently trading at around Rs 3600 aft er touching 52 week high of  Rs 4140. Considering this, investors may remain investing into the company, while new investors can buy scrip if it corrects more.