CFA HUB

Stock Ananlysis

2015-02-03T21:58:00.000-08:00

Buy :

TCS @2530

IOC@355

BPCL@685

TATA COMM.@415

Kalindi Rail@148

Reliance Infra @492

RPower around 60 for guranteed profit

Mindtree@1320

Jubliant Food@1430

Update by:

Shubhang Arora

CFA

Senior Analyst

Market Factors

2015-02-03T01:12:00.000-08:00

LPG subsidy for those in the 30% income tax slab to be removed.

Source
CNBC tv-18 flash....

comment:
[8:03AM, 2/3/2015] ‪‬: 30% tax slab guys dont even spend 10% on food, so merely a 350 rs hike wouldnt affect their spending even by 1%
[8:04AM, 2/3/2015] ‪‬: Although on an avg indian spends more than 60% of income on food
[8:05AM, 2/3/2015] ‪‬: Great Move to bill 350 bucks to the rich. That ll improve our fiscal deficit and eventually benefit those rich in future

Update by
Sagar Advani
CFA

Stock Valuation

2015-02-03T01:05:00.000-08:00

All the banking stocks was overvalued ....
Among all the banking stocks, only SBI & ICICI are undervalued. .. so it'll cover very fast....
No need to worry ....

My analysis saying that again ICICI will outperform in the next rally. So plz don't book ur profit / loss at the current level.

Update by
Vikrant Shah
CFA

UPCOMING RESULTS

2015-02-03T00:55:00.001-08:00

Upcoming Results :
Monday 2nd Feb 2015 : ADVANTA, BAYERCROP, BHARATFORG, CERA, CUMMINSIND, DCMSRMIND, GICHSGFIN, INDIANB, LAXMIMACH, MUNJALAU, RAMANEWS, REDINGTON, RELIGARE, SHANTIGEAR, STAR, UNIPHOS, UPL, WPIL, WSTCSTPAPR, ZENOTECH.
Tuesday 3rd Feb 2015 : ACC,ADORWELD, AUTOIND, BFUTILITIE, BRITANNIA, CROMPGREAV, DCMSHRIRAM, ELECON, ELGIEQUIP, GLOBOFFS, GRAVITA, GSKCONS, HEROMOTOCO, INDIANHUME, JINDALSTEL, JUBILANT, KSCL, KSL, LUPIN, MARICO, MONTECARLO, NAHARSPING, NHPC, ORIENTPPR, PNB, SHALPAINT, SHREECEM, TEXINFRA, TEXRAIL, TIMKEN, TVSMOTOR,WHEELS.
Wednesday 4th Feb 2015 : APLLTD, AUROPHARMA, BBTC, BHARTIARTL, BLKASHYAP, BOMDYEING, CANBK, CENTENKA, CENTRALBK, CENTURYTEX, DOLPHINOFF, DSKULKARNI, GEECEE, GTLINFRA, GULFOILCOR, HAWKINCOOK, INDHOTEL, INGERRAND, JAICORPLTD, JBCHEPHARM, JKLAKSHMI, KEC, MAGMA, MANINFRA, MTEDUCARE, NOVARTIND, RAMCOSYS, SITICABLE, SUNCLAYLTD, SUNDRMFAST, TATAPOWER, TIDEWATER, TUBEINVEST, WOCKPHARMA.
Thursday 5th Feb 2015 : AIAENG, ALBK, AMRUTANJAN, APARINDS, ARVIND, BALLARPUR, BIRLACORPN, CEATLTD, DHANUKA, FINANTECH, GESHIP, GODFRYPHLP, GODREJCP, GREAVESCOT, GREENPLY, GUJALKALI, HEG, HINDCOPPER, INDOTECH, IOB, IRB, JMCPROJECT, JUBLFOOD, KCPSUGIND, KPRMILL, LAKSELEC, MANALIPETC, MERCATOR, MERCK, NITCO, ONMOBILE, PETRONET, PRISMCEM, PTC, RAMCOIND, SARDAEN, SHASUNPHAR, SJVN, TALWALKARS, TATAMOTORS, TATAMTRDVR, TIL, TNPETRO, UCOBANK, VTL.
Friday 6th Feb 2015 : APOLLOTYRE, BALAJITELE, BALMLAWRIE, BALRAMCHIN, CAMLINFIN, CHAMBLFERT, DLINKINDIA, DYNAMATECH, FINOLEXIND, GAIL, GMDCLTD, HEIDELBERG, IDBI, INDIAHOME, INDSWFTLAB, INTLCOMBQ, JETAIRWAYS, JINDRILL, KALPATPOWR, MAHSEAMLES, MARICOKAYEL, MAZDALTD, MINDTECK, MUNJALSHOW, NDTV, NMDC, PAEL, PAPERPROD, PCJEWELLER, PIONEEREMB, PRECISION, RCF, SANDESH, SANGAMIND, SMSPHARMA, SONATSOFTW, SUNFLAG, SUNTV, SUTLEJTEX, TAKE, TATACHEM, TATASTEEL, THEMISMED, TIIL, TREEHOUSE, TRIBHSG, TVSSRICHAK, TVTODAY, UNIVCABLES, UTTAMSTL, VARDMNPOLY, WESTLIFE.
Saturday 7th Feb 2015 : BIRLAERIC, FDC, GAEL, GALLANTT, GIPCL, HINDMOTORS, IPCALAB, JKCEMENT, KAMATHOTEL, KERNEX, LAOPALA, MARKSANS, PIXTRANS, PREMEXPL, SCHNEIDER, SELAN, TORRCABS, VASCON, VINDHYATEL, WABAG, YASHPPR, YUKEN.

Source
Viral Mukhtayar
CFA

Corporate Snippet

2015-02-02T01:52:00.003-08:00

Corporate Snippet

Ø Infosys,is preparing to rebrand itself under its first non-founder CEO, Vishal Sikka,and are in advanced talks with twoUS brand consulting firms — Wolff Olins and Roth Partners — to explore a fresh brand identity and positioning, according to three people familiar with the discussions. "The idea is to do away with 'Infosys 3.0-Building Tomorrow's Enterprise' and come up with something more in line with the new management's thinking.( ET )

Ø The Patent Office has refused a patent application to Indian drug majorWockhardt Ltd for its skin care drug Nadifloxacin, stating that it does not meet the requirements to qualify as an invention involving inventive steps and capable of industrial application.( BS )

Ø Adani Power is in race for all six coal blocks reserved for the power sector in the upcoming auction of 23 operational mines, while Jindal Steel & Power is eyeing four.Hyderabad-based Madhucon Group's subsidiary, Simhapuri Energy, is expected to be a surprise bidder and may vie for all the coal blocks earmarked for the captive use of power producers.( ET )

Ø Hindustan Construction Company has deferred plans to list its subsidiary Lavasa Corporation for raising Rs 750 crore through initial public offer to next fiscal, a top company official said.It has also shelved plans to raise another Rs 750 crore through an issue of equity shares to qualified institutional investors to next fiscal.( BS )

Ø Gujarat State Fertilizers and Chemicals Ltd (GSFC) has initiated work for its new manufacturing facility for phosphatic fertiliser at Sikka in Jamnagar.The Chairman and Managing Director, SK Nanda, laid the foundation stone for the new plant at Sikka in Jamnagar district, to be set up with an investment of Rs. 900 crore, the company informed in a statement here.( BL )

Ø The government plans to sell another 5% of Coal India over the next few months, after raising about Rs 23,000crore by divesting a 10% stake through a public offer that scraped through last week with generous support.A portion of the next offering will be reserved for employees, who may get a special discount on the sale price over what is usually given to retail investors, a coal sector official with knowledge of the plans said. The government needs to reduce its stake by another 5% to allow Coal India to meet the regulatory requirement of at least 25% public shareholding for listed companies.( ET )

Ø The Union Steel Ministry has nominated State-owned steel makers to lead joint ventures with four iron-ore bearing States – Odisha, Chhattisgarh, Jharkhand and Karnataka – for creating an additional 24 million tonne per annum steel making capacity.Going by the thumb rule, the projects should attract investments worth Rs.1,44,000 crore.SAIL, RINL and NMDCwould form separate special purpose vehicles for the proposed steel plants as well as captive iron ore mining in each State.( BL )

Ø The Competition Commission of Indiahas enlisted Price Waterhouse & Co to monitor the divestment process of seven drug brands from the stable of Sun Pharma and Ranbaxy Labs, before granting its final approval to the takeover of the latter by former.( ET )

Ø Multiplex player PVR Ltd said that it will buy back L Capital Eco’s entire investment in equity and preference shares of PVR Leisure.In 2012, private equity firm L Capital had invested in PVR Leisure through L Capital Eco.( BL )

Ø Biocon plans to spend 10 % of its annual biopharma revenue on research and development in the next fiscal.The company, which is pursuing R&D in both novel biologics as well as biosimilars (generic versions of biologic drugs), in various stages of trials, had spent around Rs 131 crore on R&D in the previous fiscal year which was 6 % of the biopharma sales.( BS )

Ø National re-insurer General Insurance Corporation (GIC Re) plans to issue insurance-linked bonds to raise Rs.750crore for creating capacity for the proposed Indian Nuclear Insurance Pool. After breakthrough in the US-India civil nuclear deal, the government has asked GIC Re to ensure that the pool is operational immediately.( BL )

Ø Steelmaker Rashtriya Ispat Nigam Ltd(RINL), Visakhapatnam said it in talks with PSU major NMDC for marketing steel products through its strong marketing network.RINL CMD P Madhusudan said NMDC is going to commission a new steel plant and the idea is that RINL will undertake the marketing as it has a strong network for it across the country.( ET )

Ø IFCI is likely to sell its 2.5% stake in stock exchange NSE in the next 15 days which may fetch the financial institution about Rs 500 crore.Infrastructure lender IFCI at present holds 5.44% stake in the premier bourse.( BS )

Ø The Competition Commission of Indiahas rejected allegations that realty majorDLF indulged in unfair business practices with regard to a commercial project.The matter relates to booking of a commercial shop by the complainant at DLF Universal's project Prime Tower in Okhla, New Delhi.( BS )

Ø The Solicitor-General has backed theDepartment of Telecom’s stand on allocating broadband spectrum toReliance Jio.In an opinion given to the DoT, the Solicitor General has also supported DoT’s move to allow Reliance Jio to migrate its Internet service licence to a unified telecom licence. The Comptroller and Auditor General had raised concerns on both these decisions of the DoT.( BL )

Ø NMDC has reduced iron ore prices by Rs200-300 per tonne for the current month as weak global prices, which nosedived to five-and-a-half-year lows, are putting pressure on domestic rates.( BS )

Ø Moving expeditiously to resume the process of mines allocation, the Mines Ministry has appointed investment bankerSBI Capital Markets to suggest rules for auctions and the bidding parameters for selection.SBI Capital Markets is the investment banking arm of the state-owned lender State Bank of India.( BS )

Ø Divis Laboratories Ltd is considering setting up a new manufacturing facility near Kakinada in Andhra Pradesh, with an investment of Rs.500 crore.Company, which now has plants in Hyderabad and Visakhapatnam, had applied to the State Government for allocation of land for its third plant and is awaiting a response.( BL )

Ø Amar Ujala Publications, which publishes Hindi daily Amar Ujala in six northern states, is making a second attempt to raise funds through primary markets. People close to the development said the company is aiming to raise about450 crore through an initial public offer (IPO).( ET )

Ø VE Commercial Vehicles (VECV) reported 25.1% jump in total sales of its Eicher branded products at 3,262 units in January this year.The company, which is a 50:50 joint venture between Volvo Group and Eicher Motors, had sold 2,608 units in the year-ago period.( BS )

Ø Haldia Petrochemicals (HPL), the showpiece industrial project of industry-starved West Bengal, after being shut for over six months, is trying to hobble back to normalcy aided by lenders’ confidence and fall in naphtha price in world market.( BS )

Ø Kerala-based NBFC firm Kosamattam Finance Ltd plans to raise up to Rs 200crore through a public issue of non-convertible debentures (NCDs).The firm, which is into gold loan financing, has filed initial documents with the Securities and Exchange Board of India (Sebi) for the approval of the public issue.( BS )

Economic Snippet

Ø Reserve Bank of India governor Raghuram Rajan is unlikely to join central banks across the world in further easing monetary policy on February 3, having cut interest rates just two weeks ago. The majority view — 11 of 13 — in an ET survey is that he will keep rates unchanged and wait for a better picture of the government's accounts when the Budget is unveiled on February 28 by finance minister Arun Jaitley.( ET )

Ø The government could introduce in the coming Union Budget a differential minimum alternate tax (MAT) rate for certain segments of domestic manufacturing.According to those privy to the development, the Budget makers are looking to give an impetus to Indian manufacturers, particularly the micro, small and medium enterprises (MSMEs), special economic zones (SEZs) and those in the infrastructure sector.( BS )

Ø Govt gives green nod to Rs 6 lakh-cr projects in Jun-Dec.Of the total projects, the Environment Ministry has cleared 37 non-coal mining projects worth Rs 4.5 lakh cr.( BS )

Ø The Modi government is veering around to the view that it needs to stick closely to the road map on fiscal consolidation, resisting the growing clamour to raise public spending to boost growth, because indiscipline on this front could cost it in terms of credit ratings and possibly interrupt the process of monetary policy easing that was kicked off by the central bank mid-January.( ET )

Ø The government may push state-run banks to raise some of their tier II capital through the sale of bonds to the public as part of the effort to deepen the corporate bond market through enhanced retail participation. Most banks now prefer to raise tier II capital through qualified institutional placements (QIPs) because they find this route easier to use. These private placements not open to the public.( ET )

Ø India's foreign exchange reserves declined marginally by $97.9 million to $322.037 billion in the week to January 23, RBI said.In the previous reporting week, the reserves had jumped by a whopping $2.66 billion to $322.135 billion, a new record high.( BS )

Ø Jet fuel prices have been cut by 11.3% bringing further relief to domestic airlines.In Delhi the price of aviation turbine has been cut from Rs 52,423 a kilolitre to Rs 46,513 a kilolitre.( BS )

Ø FII inflows at 6-month high of Rs 33,688cr in Jan.This is the highest investment since July when overseas investors had poured in Rs 36,046 crore.( BS )

Ø Mutual funds have pumped over Rs 33,000 crore in debt markets in January on hopes that fixed income securities will continue to benefit from improvement in economic prospects and the government's reform initiatives.Besides, mutual funds (MFs) invested a net amount of Rs 270crore in equity markets last month.( ET )

International Snippet

Ø President Barack Obama's fiscal 2016budget proposes a 19 % tax on U.S. companies future foreign earnings and a one-time 14 % tax on roughly $2 trillion of profits being held offshore, the White House said on Sunday.Revenues from the one-time tax would be used to fund infrastructure projects and fill a projected shortfall in the Highway Trust Fund.( ET )

Ø The auto industry's airbag troubles deepened as US federal safety regulators said three big automakers will recall about2.1 million older vehicles to fix defects that could cause airbags to deploy when they are not supposed to.The vehicles involved in the recall announced by the US National Highway Traffic Safety Administration (NHTSA) are made by Toyota Motor, Fiat Chrysler and Honda Motor.( ET )

Ø China’s factory sector unexpectedly shrank for the first time in nearly 2-1/2 years in January and firms see more gloom ahead, an official survey showed, raising expectations that policymakers will take more action to forestall a sharper slowdown.( BS )

Ø Greece's new anti-austerity government was set to kick off its European charm offensive in Paris on Sunday seeking to renegotiate its 240 billion euro ($270billion) bailout, though Germany has already refused to consider any debt relief.( ET )

Ø CRH Plc, a building-materials company, entered a binding agreement to buy cement assets that Holcim Ltd. and Lafarge SA must sell ahead of their planned merger in a transaction valued at6.5 billion euros ($7.3 billion).The deal will allow Dublin-based CRH, which is partnering with KKR & Co, to move into new markets and expand in existing ones.( BS )

Ø France's Socialist government offered support Sunday for Greece's efforts to renegotiate debt for its huge bailout plan, amid renewed fears about Europe's economic stability.( ET )

Update by
Viral Mukhtayar
CFA

Analyst report

2015-02-02T01:39:00.000-08:00

Alert :- Both FIIs and DIIs sold in cash segment on last Friday. FIIs also sold more than Rs. 700 cr. in stock future.

Update by
Vikrant Shah
CFA

Icfai Cfa-Mfa

2012-08-26T09:05:00.004-07:00

Future of ICFAI and CFA
-------------------------------------------------------------------------------------------------------------------

ICFAI, having been embroiled in a long legal battle with the CFA Institute,focused its energy on developing private universities, some of which have AICTE recognition along with UGC recognition. ICFAI has focused all its energies away from developing its CFA charter like giving it statutory recognition increasing its status as a high status profession like that of CA from ICAI, which was announced by the governing member NJ Yeshasway who vowed to take up the CFA Charter a notch above the legendary CA exam considered to be the toughest in the realm of finance, but instead has opened a host of non-CFA programs like MBA, ICFAI Business Schools (IBS), PG Programs which have scaled up into national top 10 place in India. It has also opened schools for under graduate programs and offering degrees. Indian CFAs pass with a stringent eligibility to qualify as CFAs but have only a niche finance sector as the job market unlike CA which has traditional roles of Auditing and taxation along with statutory roles. CFAs work in investment related and finance fields where MBAs (some from ICFAI itself), CAs, Masters Degree holders of Statistics, Economics, Doctorates etc. hold top posts.

ICFAI though has safeguarded its CFA charter in India with valid state legislature under IUT Tripura Act, but CFA charterholders are not mandatorily employable and currently don't perform any statutory duty unlike CAs, CSs, CWAs, though CCFA tried to accomplish this in investment related areas in India by submitting a draft bill to the ministry of finance for consideration which was rejected due to various legal disputes that ICFAI faces. Also here is a fact to note that ICFAI University tripura has never been permitted to conduct any distance learning/correspondence course by UGC. CFAs are employed only because of their course contents and rigor of the CFA program, which is the only reason they have got market acceptance with very few qualifying as CFAs every year. ICFAI has very few CFA charter holders, compared to other professionals and hence they don't have a large and established presence in the Indian job market. Indian companies have tied up with other Indian bodies like AMFI or NSE in offering investment designations and courses.

Frequent changes to eligibility requirements changes in fee structure, exorbitant council membership charges etc., have caused confusion among the student community. Many founding members have left ICFAI as they were not happy with the way ICFAI treated its flagship course. The course, which was once a stepping stone for Indians into analytic finance has become just one more obscure degree due to continuous changes in the curriculum. As a result, there is negativity about this course in the Indian corporate world. Keeping in view the demands from the corporate world and impending competition, ICFAI is thinking of bringing whole sale changes in the curriculum and the training method from the current academic year. The new course can only be completed in 24 months and will include a training program for the passing students of final exam. ICFAI is also creating a window for students of CFA program to undergo 2 months internship with its in-house concerns to impart rigorous analytical skills. Exemption for MBAs will be stopped from the current academic year. Also, ICFAI is drafting a continuing professional development module which will be compulsory for all the current CFAs. This program will enable the current CFAs to enhance their knowledge in their respective areas and will include relevant statutes changes, paradigm shift in capital markets and allied subject matter. ICFAI hopes to regain the old status of its CFA program through continuously evolving methods, the most recent is focussing on the core aspects of investment management and financial analysis in its MFA/MIFA degree(current CFA syllabus) and increasing CFA charter membership by giving official charters to students who have cleared the core subjects of investment management and financial analysis of the previous(CFA curriculum) MS Finance program.

Indian CFA Code of Conduct
-------------------------------------------------------------------------------------------------------------------

CFAC (Indian Council of Chartered Financial Analysts) is a registered society with the Indian government seeking to regulate the profession of financial analysts in India but, unlike ICAI or ICSI or ICWAI, is not a statutory body. The CFA charter is only a certification from ICFAI apprising the public at large of the CFAs competence for Financial and Investment analysis.

The Code of Conduct covers:

1. Integrity: A CFA shall conduct him/herself with integrity and dignity in his dealings with the public, clients, customers, employers, employees, professionals and fellow analysts.

2. Ethical Behavior: A CFA shall conduct himself and shall encourage others to practice the financial analysis profession in a professional and ethical manner that will reflect credit on himself and his profession and his organization/employer where or for whom he is working.

3. Professional Competence: A CFA shall act with competence and shall strive to maintain and improve his competence and that of others in the profession.

4. Objectivity: A CFA shall be fair in his dealings and must not be biased or prejudiced. He shall try to maintain objectivity and impartiality towards one and all.

5. Professional Independence: A CFA shall use proper care and exercise independent professional judgement in all his professional activities.

6. Public Trust: A CFA shall assume the basic responsibility to place the interest of clients, prospective clients and employers ahead of his own. He shall seek to enhance public confidence in his profession.

The CFA Council has put in place a suitable mechanism to enforce the Code of Ethics and Standards of Professional Conduct.