Indian Stock Market

‘Buy’ Yes Bank

2012-01-27T11:46:00.003+05:30

Buy rating on Yes Bank is maintained with an increased target price of Rs.354 over one year. TP increased on upward revision of earnings prospects. The bank reported 3QFY12 net profit of Rs. 250 crore, which increased 32.9% yoy. Net interest income at Rs.430 crore is up 32.3% yoy.

Net interest margin (NIM) was flat at 2.8%v qoq.

Company’s earnings projections were revised upward by 8.4% for FY12, by 9.5% for FY13 and by 11.3% for FY14.

The bank could maintain margins as 38% of incremental deposits during the quarter were lower cost CASA deposits against 15% in 2QFY12.

The bank is expected to benefit from policy rate cut as wholesale deposits would get re-priced at lower rates.

Currently traded at 1.7 multiple of FY13 adjusted book value estimates. This valuation looks attractive for a bank with ROE estimate of 21% over FY12- 14.

Risks to the target price may arise from higher slippages in the SME and infrastructure space.

Axis Bank

2012-01-24T12:16:00.000+05:30

Buy rating on Axis Bank is maintained with a higher target price of Rs.1186 over one year, as against

the earlier target price of Rs.1127.

The TP is hiked on upward revision of its earnings estimates on stable NIM and higher other income.

Earnings estimates for FY12 have been hiked by 3.7% and by 4.6%, by 4.1% for FY13 & FY14

respectively.

For 3QFY12, net profit at Rs.1100 crore increased 23.7% yoy. Net interest income at 2140 crore

increased 23.5% yoy with stable net interest margin at 3.75%.

Slippages remained more or less stable at 1.7% and this seems to be a positive. Stressed assets were

reported at Rs. 8-8.5billion. It would be a positive if this level could be maintained from going up.

The bank has added 34% of its current branch network during the last two years. Its benefits are

expected to accrue and will key earnings driver in the near term.

The bank had achieved higher priority sector requirements of around 45% in FY11 against 40% by the

RBI norms. So the bank need not expand lending in this segment. This coupled with retail loan growth,

the bank would maintain its profit margins.

‘Buy’ Hero Motocorp – TP Rs.2050

2012-01-20T15:51:00.001+05:30

Company’s 3QFY12 revenue increase at 17% yoy and EBITDA at 31% yoy are in line with market expectations.
EBITDA margin at 15.8% up 170 bps yoy and 10 bps down qoq has also been line with market estimates.
Company could offset higher raw material cost by lower other operating expenses.
Depreciation increase of 7% is due to weakness in rupee against JPY.
Domestic motorcycle volume increased 11% yoy against industry growth rate of 9%, translating in to market share gain of 125 bps yoy.
Company showed healthy improvement in all operating parameters yoy. Sequentially, the margins are slightly down due to seasonality and change in product mix.
4QFY12 volume growth is expected to be similar to that of 3Q.
Honda’s entry in to 100 cc bikes has been a significant overhang on the stock. However, the brand equity and distribution edge enjoyed by the company would help limit market share loss.
Market share gain in 125 cc bikes and scooter segment will limit the market share loss in the two wheeler segment.

Sun TV Network has launched three new pay channels

2012-01-09T16:16:00.001+05:30

Sun TV Network has launched three new pay channels from Monday -- Sun Life, Sun TV RI (Rest of India) in Tamil and Gemini Life in Telugu.

Sun Life and Gemini Life will focus on areas like lifestyle, religion, health and education, the Chennai-based broadcaster said. Sun TV RI will transmit the same content that goes on air on its flagship Sun TV channel, but the broadcast will be specialized for all states other than Tamil Nadu, allowing advertisers to focus on specific geographical areas.

The company now has 32 TV channels, which includes 12 in Tamil, nine in Telugu, seven in Kanada and four channels in Malayalam languages, Sun TV said.

Sun TV has been quite aggressive in launching new channels and pushing new content recently. Last week it launched four advertisement free action movie channels in Tamil, Telugu, Kannada and Malayalam. In December, it had launched four high definition TV channels, three in Tamil and one in Telugu.

http://www.sunnetwork.in/

ICICI Prudential Fixed Maturity Plan Series 61- 18 months Plan B

2012-01-04T08:07:00.002+05:30

The launch of ICICI Prudential Fixed Maturity Plan Series 61- 18 months Plan B. A close-ended debt fund, which seeks to generate regular returns by investing in a portfolio of fixed income securities/ debt instruments which mature on or before the date of maturity of the Plan.

Date of Opening January 03, 2012
Date of Closing January 09, 2012
Asset allocation & Credit profile Non-Convertible Debentures: AAA - 0-5%, AA - 95-100%

2010 Vs 2011

2011-12-31T10:57:00.000+05:30

Good Monday..

2011-12-26T22:45:00.000+05:30

Today

BSE 15,970.75
+232.05 (1.47%)

NSE 4,779.00
+65.00 (1.38%)

Buy Tips
PTC India Ltd.,

IFCI Ltd. 23.55Rs. +6.80 %
Apollo Hospitals 593.75Rs. +5.24 %

Gold ETFs

2011-12-20T14:50:00.000+05:30

Liquid ETF

2011-12-20T14:48:00.003+05:30

Equity ETFs On NSE

2011-12-20T14:47:00.001+05:30

RECOMMENDATIONS

2011-12-20T14:32:00.001+05:30

1) NETWORK-18 (36.1)

Support at 34.9 below 33.65. Resistance at 36.5 above 38 and more. (Buy at declines)

2) DEN NETWORKS (47.85)

Resistance is at 49 above 51. (Buy at declines) Support at 45 below 44.3.

3) COAL INDIA (307.15)

Resistance is at 309 above 312 and 314. (Buy at declines) Support at 303 below 301.

4) CIPLA (332.8)

Resistance at 334 above 339. Support at 329 and 325. (Buy at declines)

5) L&T (1033)

Resistance at 1040 above 1065. (Sell at higher). Support at 1018 below 1000.

Moharum Holiday

2011-12-05T16:51:00.001+05:30

Please be informed that, 6th December 2011, Tuesday will be a Trading & Clearing Holiday for both NSE and BSE due to Moharum.

End of the Day( EOD )
BSE 16,805.33 -41.50 (-0.25%)
NSE 5,039.15 -11.00 (-0.22%)

RECOMMENDATIONS

2011-09-28T10:21:00.002+05:30

M&M FINANCE (652)
Support at 648 below 639. Resistance at 660 above 668 and more. (Buy at declines)

CAIRN INDIA (280.25)
Support at 272 and 265. Resistance at 282 above 286 and more. (Buy for delivery)

ICSA (71.7)
Resistance at 72.1 above 73 and 77. Support at 70 below 68.1. (Buy at declines)

REDINGTON INDIA (92.1)
Resistance is there at 92.65 above 93 and 96. Support at 90 below 89.1. (Buy for delivery)

JSW STEEL (609.1)
Resistance is there at 614 above 618. Support at 601 below 590 and 584. (Sell at higher)

--PNB--

Upcoming IPO -> M AND B SWITCHGEARS LIMITED

2011-09-28T10:13:00.002+05:30

Issue Open:
September 28, 2011

Issue close:
October 05, 2011

Price Band:
Rs. 180 - Rs. 186 Per Equity Share

Minimum Bid Size:
30 Equity Shares

Face Value:
Rs. 10 Per Equity Share

Issue Type:
100% Book Building

Maximum Subscription Amount for Retail Investor: Rs. 200000

M AND B SWITCHGEARS LIMITED:

Incorporated in 1999, M and B Switchgears Ltd is engaged in manufacturing of distribution transformers, power transformers, furnace/rectifier transformers and special purpose transformers.Company is in business of manufacturing transformers for more than 30 years and is a preferred supplier of quality transformers.

IPO Grading / Rating:

ICRA has assigned an IPO Grade 2 to M AND B SWITCHGEARS LIMITED IPO. This means as per ICRA, company has 'Below Average Fundamentals'.

Website:

http://mbswitch.com/

FLEXITUFF INTERNATIONAL LIMITED

2011-09-28T10:10:00.000+05:30

Issue Open:
September 29, 2011

Issue close:
October 05, 2011

Price Band:
Rs. 145 - Rs. 155 Per Equity Share

Minimum Bid Size:
40 Equity Shares

Face Value:
Rs. 10 Per Equity Share

Issue Type:
100% Book Building

Maximum Subscription Amount for Retail Investor:
Rs. 200000

FLEXITUFF INTERNATIONAL LIMITED:

Incorporated in 1966 as Saurabh Potteries & Ceramics, Flexituff International Ltd is today in the business of manufacturing Flexible Intermediate Bulk Containers (FIBC), Geo-Textile Fabric and Ground Cover, Reverse Printed Biaxially Oriented Polypropylene (BOPP) Woven Bags, Special Polypropylene (PP) Bags including Leno Bags.

IPO Grading / Rating:

CARE has assigned an IPO Grade 3 to Flexituff International IPO. This means as per CARE, company has ' Average Fundamentals'.

Website:
http://www.flexituff.com/

Upcoming IPO ->RDB Rasayans, Tijaria Polypipes Ltd

2011-09-20T11:55:00.006+05:30

RDB Rasayans is entering in the capital markets with an initial public offering, IPO of 45,00,000 Equity Shares of Rs 10 each. The price band for the issue has been fixed at Rs 72/- at lower level and Rs 79/- at upper level.

The issue opens on Sep 21, 2011 and closes for subscription on Sep 23, 2011. The equity shares of the issue are proposed to be listed on the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE).

Website:

http://www.rdbgroup.in/

About Company

Incorporated in 1995, RDB Rasayans Ltd, an ISO 9001:2008 certified organization, engaged in manufacture and sale of FIBC (Jumbo Bags) and Woven Sacks and various woven polymer based products like Container Liners, Protective irrigation system, Canal Liners, etc. PP sacks are mainly used for packing the different products in the fertilizers, cement, polymers, chemicals, textiles, machinery, automobiles and steel industry etc.

RDB Rasayans produces FIBCs of U+2 panel, Circular Jumbo bags, Baffle bags, All panel bags, Conductive FIBC and Static dissipative FIBCs. In addition to FIBC, the Company also manufactures various woven polypropylene products including Small bags, Box woven bags, Roofing underlayment fabric, Courier bags, Ground covers, Silt fence and Geotextiles. The Company offers woven bags and fabrics in both PP and HDPE. Its products are UV stabilized and pre-conditioned against shrinkage.

Tijaria Polypipes Ltd is entering in the capital markets with an initial public offering, IPO of 1,00,00,000 equity shares of face value Rs 10/- each aggregating Rs 60 crore through the fixed price IPO.

The issue opens on Sep 27, 2011 and closes for subscription on Sep 29, 2011. The equity shares of the issue are proposed to be listed on the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE).

About Company

Incorporated in 2006, Tijaria Polypipes Ltd is an ISO 9001:2000 Certified company engaged in the business of plastic pipes. Tijaria is manufacturing of pre-lubricated HDPE pipes (PLB HDPE), PVC & SWR pipes, sprinkler pipes and systems, flat tubes, fittings and PET straps under the registered brand name of Tijaria and Vikas. The company produces a big product range in the field of plastics, HDPE sprinkler, drip irrigation, micro irrigation, telecommunications etc.

Tijaria's product offerings include HDPE pipes, PVC pipes, LLDPE pipes, HDPE DWC pipes, PLB HDPE Ducts, MDPE pipes, uPVC RIGID & BLUE CASING pipes, Pet Granules, MICRO/DRIP Irrigation System, SWR PIPES & FITTINGS, PPR Pipes & Fittings, HDPE Sprinkler System. These products are used in irrigation, telecommunication, industrial, and infrastructure and housing sector. Total production capacity of Tijaria Polypipes is 25163 million tonnes per annum (MTPA).

Website:

http://www.tijariapipes.com/

Upcoming IPO - Prakash Constrowell Ltd

2011-09-14T10:46:00.000+05:30

Prakash Constrowell Ltd is entering in the capital markets with an initial public offering, IPO of 60 crores. The price band for the issue has not been fixed yet.

Prakash Constrowell Ltd is a construction company engaged in the business of infrastructure development and civil construction. Company is headquartered at Nasik, Maharashtra. Prakash Constrowell has successfully execute a range of construction projects in the state of Maharashtra awarded by government and semi-government bodies using Public-Private Partnership (PPP) model.

The issue opens on Sep 19, 2011 and closes for subscription on Sep 21, 2011. The equity shares of the issue are proposed to be listed on the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE).

Website: http://www.pclnsk.com/

Upcoming FPO - ONGC Ltd

2011-09-07T12:50:00.004+05:30

Oil & Natural Gas Corpn Ltd (ONGC) is entering in the capital markets with an Follow-on Public Offer, FPO of 42,77,74,504 Equity Shares of Rs 5 each. The price band for the issue has not been fixed yet.

Oil and Natural Gas Corporation Ltd (ONGC) is the largest oil and gas exploration and production company in India in Fiscal 2010. ONGC's main business segments are exploration and production, refining. During the fiscal year ended March 31, 2010 (fiscal 2010), ONGC had a crude oil production of 32.95 million metric tons and natural gas production of 27.98 million metric tons.

The issue opens on Sep 20, 2011 and closes for subscription on Sep 23, 2011. The equity shares of the issue are proposed to be listed on the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE).

Upcoming IPO - PG Electroplast Ltd

2011-09-07T12:50:00.000+05:30

PG Electroplast is entering in the capital markets with an initial public offering, IPO of 5,745,000 Equity Shares of Rs 10 each. The price band for the issue has been fixed at Rs 190/- at lower level and Rs 210/- at upper level.

PG Electroplast Ltd is in the business of Electronic Manufacturing Services (EMS). Company manufactures variety of electronic component and finished goods for Original Equipment Manufacturers (OEMs) of consumer electronic products in India. PG Electroplast manufactures products as color television sets (CTV) & components, air conditioners sub-assemblies, DVD players, water purifiers and Compact Fluorescent Lamps (CFL).

The issue opens on Sep 07, 2011 and closes for subscription on Sep 12, 2011. The equity shares of the issue are proposed to be listed on the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE).

website: http://www.pgel.in/

Buy Tips

2011-09-06T16:43:00.002+05:30

Bajaj Corp

Cluster: Ugly Duckling

Recommendation: Buy

Price target: Rs155

Current market price: Rs109

Strong presence in the fast-growing light hair oil category: Bajaj Corp Ltd (BCL), part of the Shishir Bajaj group, is the third largest player in the hair oil segment and has emerged as the dominant player in the premium light hair oil (LHO) category with its Almond Drops hair oil. Driven by a rise in the disposable income and aspirations of consumers the LHO market has seen a strong growth of 25.5% CAGR in the past four years. With its strong positioning, product differentiation and distribution strength, BCL has grown at a relatively much higher rate and increased its market share in the LHO category from 38% to over 50% in the same period.

Enhancing its product portfolio: Leveraging on its strong presence in the LHO segment and the distribution strength of over 2 million retail outlets, BCL is looking at enhancing its product portfolio through brand extension and introduction of new products. In line with this strategy the company has recently launched Kailash Parbat Cooling Oil (KPCO) in the cooling hair oil category. The initial response has been quite encouraging with KPCO achieving a volume market share of 1% within the first quarter of its launch.

Strong growth momentum to sustain: Despite the hike in the average selling price in response to the rising input cost, BCL was able to report a strong volume growth of 19.9% in Q1FY2012. The company would be able to sustain a healthy double-digit volume growth in its flagship brand, Almond Drops, while the newly introduced KPCO would bring in the incremental growth in volumes. Consequently, we have factored in a 17% compounded annual growth in volume over the next two years.

Attractive valuations: With leadership in the LHO category, BCL is well poised to achieve a good growth in a scenario in which people are climbing up the value chain and consumption in rural India is on the rise. We expect BCL's top line and bottom line to grow at CAGR of 24% and 18% respectively over FY2011-13. It has around Rs400 crore as cash & cash equivalents which provides an opportunity to carry out both organic and inorganic growth activities. The stock is currently trading at 13.7x its FY2012E EPS of Rs8.0 and 11.2x its FY2013E EPS of Rs9.7. Considering the company's good cash generation ability and the better visibility of its earnings over the next two to three years, we believe the stock is trading at a stark discount to some of its FMCG peers. Hence, we initiate coverage on the stock with a Buy recommendation. Our price target stands at Rs155

-Sharekhan

L&T, Coal India

2011-08-25T17:58:00.001+05:30

L&T Construction on Wednesday said it has secured new orders worth Rs 1,340 crore in building and factories segment during Q2 FY12 for the construction of commercial and residential buildings, including add-on orders from ongoing projects.

At least 22 mines owned by Coal India, the world's biggest coal miner, face closure over environmental concerns in Jharkhand, potentially suffering an output loss of up to 40,000 tonnes a day.

Upcoming IPO -> TD POWER SYSTEMS LIMITED

2011-08-23T19:48:00.001+05:30

Issue Open:

August 24, 2011

Issue close:

August 26, 2011

Price Band:

Rs. 256 - Rs. 261 Per Equity Share

Minimum Bid Size:

25 Equity Shares

Face Value:

Rs. 10 Per Equity Share

Issue Type:

100% Book Building

Maximum Subscription Amount for Retail Investor:

Rs. 200000

TD POWER SYSTEMS LIMITED:

Incorporated in 1999, Bangalore based TD Power Systems Ltd is one of the leading manufacturers of AC Generators with output capacity in the range of 1 MW to 52 MW for prime movers such as steam turbines, gas turbines, hydro turbines, wind turbines, diesel and gas engines. Along with AC Generators Company also executes Turbine Generator ("TG") island projects for steam turbine power plants with output capacity up to 52 MW using a Japanese turbine combined with their generator. Company is ISO 9001-2008 certified.

IPO Grading / Rating:

CARE has assigned an IPO Grade 4 to TD Power Systems IPO. This means as per CARE, company has 'Above Average Fundamentals'.

WEBSITE:

http://www.tdps.co.in/

Upcoming IPO - SRS Limited

2011-08-21T17:44:00.003+05:30

Issue Period

23 August 2011 to 26 August 2011

Price Band

58 - 65

Lot Size

100 shares and in multiples of 100 thereafter

Issue Size

227.50 crore

IPO Rating

3/5 ICRA

SRS Limited was incorporated in 2000 with the objective of trading in FMCG goods and it later entered into the other business segments.

The company's business portfolio comprises cinema exhibition, food & beverages, retail, and manufacturing & retailing of jewellery.

The company has four business verticals categorised as cinema exhibition, food & beverages, retails and cash & carry, and jewellery.

The company operates a chain of cinemas spread across six cities cinema exhibition brand. It comprises 11 properties at strategic locations.

WebSite: http://www.srsparivar.com/

Technology stocks are downgraded

2011-08-19T10:34:00.000+05:30

Technology stocks are downgraded to ‘reduce’ from the earlier ‘buy’ recommendation,

viewing the deteriorating outlook for the technology sector.

Though these stocks have corrected heavily in August, it seems that the prolonged macro

weakness and the recession fears are not yet reflected in the current valuation. Chances are that these stocks could be bought cheaper on a future date.

-BNP Paribas

Upcoming IPO -> Brooks Laboratories Limited

2011-08-13T06:20:00.003+05:30

Issue Open:

August 16, 2011

Issue close:

August 18, 2011

Price Band:

Rs. 90 - Rs. 100 Per Equity Share

Minimum Bid Size:

60 Equity Shares

Face Value:

Rs. 10 Per Equity Share

Issue Type:

100% Book Building

Maximum Subscription Amount for Retail Investor:

Rs. 200000

BROOKS LABORATORIES LIMITED:

Incorporated in 2002, Brooks Laboratories Ltd is in the business of Pharmaceutical Contract Research & Manufacturing. Company manufactures wide range of products catering to critical care segment in Parental Section like Beta Lactam, Cephalosporin & General Dry powder Injectables, Ampoules and Liquid vials, Dry Syrups and Tablets etc.

IPO Grading / Rating:

ICRA has assigned an IPO Grade 2 to BrooksLabsIPO. This means as per ICRA, company has 'Below Average Fundamentals'.

Website:

http://www.brookslabs.net/