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Best Debt Mutual Funds of 2015 :January Update

2015-01-29T03:14:00.000+05:30

Here is the list of Top Mutual Fund picks report from Sharekhan for the year 2015 as of January 2015

Do you think Micromax Canvas 4 is a Flop?

2013-07-09T02:18:00.000+05:30

Earlier today Micromax launched it’s yet another Canvas series of Smartphone’s, the Micromax Canvas-4 in India at a Lavish Launch in Delhi with Bollywood actress Chitrangada Singh and model Rochelle Maria Rao. Right from the start the launch was set for a bad start with the launch getting delayed by over 45 mins and people were guessing clueless, wondering the reason for the delay on the social media and viewers like me waiting online to catch a glimpse of the latest Canvas phone.

Most of the social users were upset and definitely, #WAITCANBEENDLESS was trending sometime.

Micromax needs to fix its Time management skills if it sees itself as among the Top mobile brands in India.

Anyways, coming back to the actual phone, the Canvas-4 did not live upto the Hype that was created right from the Indo-Pak ICC Champions trophy matches. The Advertisement displaying the new Micromax Canvas-4 making an entry with a typical Mercedes Benz A- Class like Ad promo. So did the marketing guys Hype it too much? Well they surely did succeed with the amount of pre bookings done.

Micromax Canvas-4 is a game changer for Micromax, with nearly close to 12,000 Pre-books and is slowly

looking to enter the premium category of smartphones which are priced above 20k in India. However is this a Good decision for Micromax? Only time will tell.

But today, when we look at the Micromax canvas4, we expected something great in terms of Hardware(PS:Software was never a concern). Was Micromax let down by its Chinese manufacturers? Of is this a classic example of Bad timing by Micromax ? These are some of the questions we would get to know, in the days to come.

The Micromax Canvas4 has following features which when compared to its own sibling Canvas3

·   Full TRU HD screen
· 13 MP Camera
·         5 MP front camera
·         8.99 Anodized aluminum body

pPRICE : Rs 17999 with Free Flip Cover with Surface touch technology

Here’s the complete spec of the Micromax Canvas 4 .

KEY FEATURES
Operating System	Android Jellybean 4.2.1
Screen Size	12.7 Cms (5)
Rear Camera Resolution	13.0 MP
Front Camera Resolution	5.0 MP
Processor	1.2 GHz Quad Core
Battery Capacity	2000 mAh
Connectivity Options	3G/Bluetooth/Wi-Fi/USB
Warranty Available	1 Year
Phone Accessories	Charger, Handsfree, USB Cable, Flip Cover
DESIGN
Weight(in gms)	158
Dimensions (in mm)	144.5738.9
Color Options Available	Grey, White
Flip Cover	Yes
SCREEN
Screen Size (Cm)	12.7 cm
Screen Resolution	1280*720
Screen Graphics	HD
Screen Type	IPS
Colour Depth	True color(16.7 M)
CHIPSET
Type	MT 6589
Frequency	1.2 GHZ

STORAGE
RAM	1GB
ROM	16GB NAND FLASH
Memory -apps	2.4GB
Memort Internal Storage	10GB
Expandable Memory	32GB

Apart from this the rest of the features are just gimmicks like “Blow to open” or “Shake to Open”

Read Tech2 ‘s blow by blow review of the feature :

Let me know, what do you think about this phone?

Earnings Results: HDFC Bank reports 30.6% PAT

2012-07-13T15:25:00.004+05:30

HDFC Bank Ltd reported a 30.6 per cent jump in net profit to Rs 1,417.39 crore for the quarter ended June 30, 2012, compared to Rs 1,084.98 crore for the quarter ended June 30, 2011. The results were in line with analyst estimates. The private sector bank was expected to report a 30 per cent YoY increase in profit after tax to Rs 1,414.20 crore for the first quarter of fiscal 2013, according to ET Now estimates.Total income increased to Rs 9,536.91 crore in the June 2012 quarter from Rs 7,098 crore in the year-ago period.

HDFC bank Quater ended june 30 2012 Results Detailed analysis coming soon.

VW India Marketing team quits

2012-07-13T14:49:00.001+05:30

Volkswagen's new CEO Gerry Dorizas is looking for a new sales and marketing team for his india operations ahead of reports that the senior executive of indian operation Neeraj Garg and sandeep mandrekar have resigned and decided to move on. There are reports that Gerry Dorizas is looking to poach heads from India's Largest passenger car vehicle manufacturer Maruti Suzuki. It is believed from the news reports that new CEO is not happy with the progress of the indian operation and its target to acheive 10% market share in india. Currently VW apart from its own brand also sells, AUDI,SKODA as well.

But the Volkswagen spokesperson described it as "speculation". The departures come on the heels of a dramatic fall in performance for Volkswagen in the first three months of the new fiscal year. Sales have fallen 16 per cent to 15,539 cars while production slumped 30 per cent to 17,533 cars. Volkswagen's market share, which excludes the sales of subsidiaries Audi and Skoda, slid to 2.35 per cent from 3 per cent in the year-ago period. Gerry Dorizas, dispatched from Japan to turn around the Indian operations, is believed to be cracking the whip and had approached the Maruti executives with job offers after Garg and Mandrekar decided to leave.

Neeraj Garg, director and member of Volkswagen's passenger cars division and the man responsible for the firm's six brands in the country, has expressed his desire to quit. He has been promoted and offered a posting in China, but ET learns that he has declined the offer. Sandeep Mandrekar, the head of sales for India and the second-in-command in the sales and marketing division, has also decided to move on

Volkswagen confirmed the departure of Mandrekar, attributing it to his desire to pursue opportunities outside the organisation. "Neeraj Garg has been promoted and offered an assignment in China, which is still under discussion," a Volkswagen spokesperson said.

Source Economictimes -
http://economictimes.indiatimes.com/news/news-by-industry/auto/automobiles/volkswagen-indias-marketing-team-puts-in-papers-as-sales-slide/articleshow/14857170.cms

Hindustan Copper FPO in October

2012-07-12T23:12:00.002+05:30

The Govt of India is planning to raise Rs 4500 Crore by divesting stakes 10% Stake in RINL(Rashtriya Ispat Nigam) and another 10% Stake in Hindustan Copper Limited (HCL).
HCL’s mines and plants are spread across four operating Units, one each in the States of Rajasthan, Madhya Pradesh, Jharkhand and Maharashtra as named below:

» Khetri Copper Complex (KCC) at Khetrinagar, Rajasthan
» Indian Copper Complex (ICC) at Ghatsila, Jharkhand
» Malanjkhand Copper Project (MCP) at Malanjkhand, Madhya Pradesh
» Taloja Copper Project (TCP) at Taloja, Maharashtra

We will update this section once we get more news.
Hindustan Copper IPO Allotment Status (Coming Soon)
Rashtriya Ispat Nigam (RINL) IPO Allotment Status (Coming Soon)

INFOSYS Tech Q1 FY2013 earnings Results Complete Analysis: Sharekhan

2012-07-12T22:26:00.000+05:30

As always all eyes were on the results of Infosys - the IT giant which has a huge weightage on the BSE benchmark. The D-street got major disappointment as the company announced its results for the quarter ended June 30, 2012.

Highlights of Infosys' consolidated results for the quarter ended June 30, 2012:-

• Revenues were Rs 9,616 crore for the quarter ended June 30, 2012; YoY growth was 28.5%

• Net profit after tax was Rs 2,289 crore for the quarter ended June 30, 2012; YoY growth was 32.9%

• Earnings per share (EPS) was Rs 40.06 for the quarter ended June 30, 2012; YoY growth.

Click here to view Detailed results

Why do Infosys' results matter?

Infosys’ results are important because being the first major company to report its results, Infosys results give an indication about the trend in IT sector, which generally reflects the overall economic sentiments, as their businesses depend a lot on spending power of companies across the sectors.

What were the expectations?

Sharekhan was of the view that Infosys will cut revenue guidance (in USD terms) to 7%-9% from 8%-10% earlier, however In INR term, the currency reset would drive the upgrade in earnings per share (EPS) guidance for FY2013 to Rs179-181 (23.1-24.5% growth).

Why did the Infosys shares plunge today?

Infosys - India's second-biggest software services exporter issued lower-than-expected dollar guidance for the fiscal year ending in March 2013. This is the most important number for analysts because IT companies earn in dollar terms.
The company said it expected revenue to grow by 5% in the fiscal 2013 year, below previous outlook of 8-10%.
The company has not put out an earnings forecast for the second quarter ending September 2012 for the first time ever, a sign of the increasing uncertainty in global environment.
The company also reported lower than expected top line (revenues) and bottom line (profits) in the June quarter.
It reported sales of Rs 9,616 crore in the June quarters against market expectations of Rs 9,715.2 crore. Sales rose 8.6% as compared to the March quarter (Rs 8,852 in sales).
Net profit rose to Rs 2,290 crore in the June quarter against the street expectation of Rs 2,483 crore. Net profit declined over 1% as compared to the March quarter (Rs 2,316 crore).
Infosys reported over 1% decline in dollar revenue at $1752 million in the June quarter against $1771 million in the previous quarter. This is the most important number for analysts because IT companies earn in dollar terms. Analyst had expected dollar revenue to rise to $1774.5 million.
Ebitda margins, a key measure of profitability, declined to 28% against estimates of 30%.
The company has not said what it plans to do with the $4.1 billion cash reserves it has on its balance sheet (as of March 31, 2012).

Major announcements by Infosys management:-

Wage hike only in October

Shibulal, Infosys CEO said the company has not incorporated any wage hike inInfosys for now. “We will revisit the decision to give wage hikes if any in October,” he said as reported in the media.

Buyback was never considered

All the buzz about Infosys’ Rs 2,000 crore buyback plan can be put to rest as the management dismissed all rumours and said that the share buyback was never on the cards. However, the company stressed the importance of inorganic growth and said it is still scouting for acquisitions.

Visa expenses, contract cancellation cause of worry for Infy

Infosys MD Shibulal says FY13 revenue guidance has been cut because of currency fluctuations and the current business environment in the US and Europe. Moreover, the company is facing difficult visa norms and is being forced to spend more on visas to ship techies to the US. Hence, the rise in visa expense and employee cost resulted in a decline in margins in the first quarter of the financial year 2013. Infosysalso lost around $13 million because of currency fluctuations as the rupee depreciation gains were offset by pricing declines and $15 million was written off on a transmission project in Europe as a prudent measure which resulted in a fall in revenue. However the write-off was a one-off and the company does not expect any more order cancellations. Pricing in the first quarter dropped 3.7% on a sequential basis.

No guidance for second quarter for the first time

However, for the first time the company did not give a guidance for the second quarter. The management defended the move and said it was not in a position to give a quarter on quarter guidance because the global economic situation is extremely volatile at the moment. Quarter guidance will only be provided with the business environment stabilises globally. The management also maintained that there was no uptick in the attrition rate during the quarter. The attrition has grown to 14.9% against 14.7% quarter-on quarter

The company expects a 9.5% volume growth this year.

Sharekhan maintains HOLD rating on Infosys with a target price of Rs2440.

Powered by Sharekhan - MUST KNOW NEWS

Technical Calls for July 2012 :Updated

2012-07-12T22:18:00.002+05:30

The Nifty has closed in the negative today and is now expected to head higher till 5400 with support around 5298 in the short term. It will face crucial resistance at 5348. Of the 50 stocks of the Nifty, State Bank of India and Bharat Heavy Electricals Ltd (BHEL) are expected to move up further going forward.

The Nifty had been trading in a range between 5263 and 5333 and the range has broken out on the upside with support around the 5257 mark. The Nifty is now expected to move up till 5450 levels. It has broken out of a triangular pattern with a break away gap and has also closed above the 20-week moving average (WMA) ie 5175, which is a positive sign for the market. The Nifty is now expected to

retrace 78.6% of the previous fall from 5630 to 4770, ie to 5450.

Other technical observations:

On the daily chart the Nifty is trading above its 20-day moving average (DMA) and 40-DMA ie 5201 and 5156 respectively. The momentum indicator has turned in the negative mode on the daily chart. On the hourly chart, the Nifty is trading above its 20-hour moving average (HMA) and 40-HMA ie 5303 and 5298

respectively, which are crucial intra-day levels. The hourly chart momentum indicators have turned into negative mode. The market breadth was negative with 548 advances to 936 declines on the NSE.

INFOSYS Tech Q1 Results Below Expectations: HOLD Target Rs-2440

2012-07-12T21:38:00.000+05:30

Infosys falls over 10% and hit’s the monthly low of Rs2216.05 on the BSE, after the Company posted Q1 earnings.

Infosys has announced the following Audited Standalone results for the quarter ended June 30, 2012:

The net profit of the Company surges by 33.25% to Rs2204 crore for the quarter ended June 30, 2012 as compared to Rs1654 crore for the quarter ended June 30, 2011.
The total income of the company increased by 27.98% to Rs9368 crore for the quarter ended June 30, 2012 from Rs7320 crore for the quarter ended June 30, 2011.

Consolidated Results:

The net profit of the group advanced by 32.93% to Rs2289 crore for the quarter ended June 30, 2012 as compared to Rs1722 crore for the quarter ended June 30, 2011.
The total income of the company increased by 27.30% to Rs10092 crore for the quarter ended June 30, 2012 from Rs7928 crore for the quarter ended June 30, 2011.

Infosys Tech Q1FY2013 results – Another disappointing performance, subdued guidance for FY13.

Revenues were down 1.1% QoQ in US$ terms at $1752 million and in INR terms up 8.6% QoQ at Rs9616 crore.

The US dollar revenues were below with our expectation of $1777 million and with company guidance of $1771 - 1789 million. Volumes grew by 2.7% QoQ.

EBIT margins fell by 190bps QoQ at 28% lower than our expectation of 31%.

Net Profit de-grew 1.2% at Rs2289 crore against expectation of Rs2421.2 crore.

The company has not given Q2FY2013 guidance.

For the full year FY2013, the company has revised its guidance to revenue growth to 5% to 7343 million down from the earlier guidance of revenues growth of 8-10% at $7553 - 7692 million and in rupee terms Rs40364 crore up 19.7%. EPS guidance has been increased to Rs166.46 up 14.4% to against Rs 158.76 – 161.41 guided earlier.

Infosys has once again disappointment on the earning fronts and subdued revenues guidance revision to 5% growth (earlier 8%-10%) for FY13E reflects the escalating problems in the company client’s space.

We maintain our HOLD rating on Infosys with a target price of Rs2440. We will come out with a detailed update post the conference call.

2012: TOP SIP Mutual Funds

2012-06-26T20:44:00.002+05:30

Large-cap funds

• Franklin India Bluechip

• DSP BlackRock Top 100 Equity Fund

• Birla Sun Life Frontline Equity Fund - Plan A UTI Equity Fund

• Sundaram India Leadership Fund

• BSE Sensex

Multi-cap funds

• Reliance Equity Opportunities Fund

• Birla Sun Life Top 100 Fund UTI Opportunities Fund

• ICICI Prudential Top 100 Fund

• UTI Equity Fund

• ICICI Prudential Dynamic Plan

• BSE 500

Mid-cap funds

• SBI Magnum Sector Funds Umbrella - Emerg Buss Fund

• HDFC Mid-Cap Opportunities Fund

• UTI Mid Cap Fund

• DSP BlackRock Small and Midcap Fund

• Kotak Emerging Equity Scheme

• BSE Midcap

Tax saving funds

• Franklin India Taxshield

• S&P Nifty

• HSBC Tax Saver Equity Fund

• Fidelity Tax Advantage Fund

• ICICI Prudential Taxplan

• Reliance Tax Saver (ELSS) Fund

Read Full report – Click Here

HOLD ITC : Target 259

2012-06-23T17:42:00.000+05:30

Key points

Cluster: Apple Green
Recommendation: Hold
Price target: Rs259
Current market price: Rs251

FY2012-a strong performance: It was yet another fiscal of strong performance by ITC with a 23.6% year-on-year (Y-o-Y) growth in the bottom line. The strong bottom line growth was driven by an improvement of around 61 basis points year on year (YoY) in the operating profit margin (OPM; to 35.2%) and a 42% Y-o-Y growth in the other non-operating income. The strong growth in the other income was mainly on account of a growth of 118% and 38% YoY in the gain of the long-term and short-term investments respectively during the current fiscal.
Further improvement in cash conversion cycle: ITC's cash conversion cycle (CCC) further improved to negative eleven days in FY2012 from negative five days in FY2011 (CCC had stood at eight days in FY2010). The inventory days reduced to 79 days in FY2012 from 84 days in FY2011. This was largely on account of efficient sourcing of raw materials for its various businesses. The creditor days stood at 104 days in FY2012 as against 103 days in FY2011.
Strong cash generation ability: ITC has one of the strongest balance sheets amongst its peers with a strong cash-generation ability. The cash generation from operations stood at 28% of net sales, up from 25% of net sales in FY2011. After the capital expenditure (capex) the free cash flow of the firm at the stand-alone level grew by 14% YoY in FY2012. The incremental cash flow was utilised to reward the shareholders with a strong dividend pay-out of about 67% in FY2012. This was higher than the ordinary dividend pay-out of 51% in FY2011 (including a special dividend the pay-out ratio stood at 82%). The cash on books at the end of the year stood at Rs2,818.9 crore in FY2012 as compared with Rs2,243.2 crore in FY2011.
Sustained improvement in return ratios: The return ratios have continued to improve on a Y-o-Y basis in the past four to five fiscals. The return on net worth (RoNW) and the return on capital employed (RoCE) stood at 35.5% and 44.6% respectively in FY2012, up from 33.2% and 42.5% respectively in FY2011.
Test launch of 64mm cigarette: As anticipated by us, ITC has test-launched its 64mm cigarette in Uttar Pradesh and Bihar. It has launched the Capstan brand of cigarette at Rs2 per stick and the Gold Flake brand at Rs2.5 per stick. This will help it in minimising the impact of the significant excise duty hike in the other slabs of cigarettes (an average excise duty hike of 22% for ITC in the other cigarette segments). Also, there is the possibility of people upgrading from bidis to low-priced filter cigarettes or shifting from smuggled cigarettes to low-priced filter cigarettes.
Outlook and valuation: We have incorporated the key financials for FY2012 as per the annual report. Since there has been no increase in the value-added tax (VAT) in the budget of some of the key states, such as Maharashtra, Tamil Nadu, Andhra Pradesh and West Bengal (except for Karnataka and Kerala), we expect just a 2.5% increase in the average VAT rate per stick for FY2013 (the expectation was ~5% YoY earlier). Hence, we have marginally revised upwards our earnings estimates for FY2013 and FY2014 by 1% and 2% respectively.
In line with the slight upward revision in the earnings estimates, our revised price target stands at Rs259. At the current market price the stock trades at 26.7x its FY2013E earnings per share (EPS) of Rs9.4 and 22.3x its FY2014E EPS of Rs11.3. Since our last update on the company (Stock Update dated May 25, 2012) the stock has moved up by 7%, leaving little room for any upside from the current level. Hence, we downgrade our recommendation on ITC from Buy to Hold. However, we maintain ITC as our top pick in the fast moving consumer goods (FMCG) space and any reduction in the stock price should be treated as an opportunity to invest in the stock.

IRCTC Lanches Airline ticket booking from Today

2012-06-22T21:29:00.000+05:30

IRCTC has launched the airline booking from today. You can login to www.air.irctc.co.in

IMAX in Chennai : Pheonix Market City Velachery

2012-06-22T21:03:00.001+05:30

Chennai movie buffs can now experience High Digital Movie experience , with IMAX opening soon in Chennai. SPI cinemas( Formerly Satyam Cinemas) has today formally sent its previlge customers the announcement of IMAX coming soon to chennai. SPI cinemas has recently opened few more screens in Perumbur, to tackle the over crowded ESCAPE Cinemas and Satyam theatres in city. With the opening of perumbur, SPI cinemas can now expect chennaites from Anna nagar, Kilpauk, and suburban areas to throng quality movie experience.

IMAX opening will add another feather to the cap of the much loving movie crowd of chennai.

IMAX Chennai is at velachery - Pheonix Market City

Book IMAX CHENNAI Tickets Online at - http://luxeimax.com/

Buy -Sell Technical Calls - SEP 5th 2011

2011-09-04T23:46:00.005+05:30

Buy Calls - BULLISH CALL

SELL CALL - Bearish Events

Symbol Exchange Name Event Close at Event Target Price Range Opportunity Type 500085 BSE Chambal Fertilisers and Chemicals Ltd Upside Breakout 112.9 119.00 - 122.00 Short-Term Bullish 500875 BSE ITC Ltd Symmetrical Continuation Triangle (Bullish) 203.2 221.00 - 225.00 Intermediate-Term Bullish 503162 BSE Reliance Chemotex Industries Ltd Upside Breakout 138.25 174.00 - 184.00 Long-Term Bullish 507880 BSE VIP Industries Ltd Symmetrical Continuation Triangle (Bullish) 892.8 1,056.00 - 1,100.00 Intermediate-Term Bullish 526441 BSE Vision Technology India Ltd Continuation Wedge (Bullish) 5.32 7.00 - 7.40 Intermediate-Term Bullish GITANJALI NSE Gitanjali Gems Ltd Symmetrical Continuation Triangle (Bullish) 319 352.00 - 361.00 Intermediate-Term Bullish HINDPETRO NSE Hindustan Petroleum Corp Ltd Symmetrical Continuation Triangle (Bullish) 381 420.00 - 429.00 Intermediate-Term Bullish ITC NSE ITC Ltd Symmetrical Continuation Triangle (Bullish) 203.05 221.00 - 225.00 Intermediate-Term Bullish MAXWELL NSE Maxwell Industries Ltd Upside Breakout 24.85 29.10 - 30.10 Intermediate-Term Bullish RAJESHEXPO NSE Rajesh Exports Ltd Ascending Continuation Triangle 112.95 122.00 - 125.00 Short-Term Bullish RAJESHEXPO NSE Rajesh Exports Ltd Bottom Triangle 112.95 129.00 - 133.00 Intermediate-Term Bullish RAJESHEXPO NSE Rajesh Exports Ltd Continuation Diamond (Bullish)^W 112.95 414.00 - 482.00 Long-Term Bullish RBN NSE Reliance Broadcast Network Ltd Continuation Wedge (Bullish) 82.5 95.00 - 98.00 Intermediate-Term Bullish TFCILTD NSE Tourism Finance Corp of India Ltd Bottom Triangle 30.3 38.00 - 39.75 Intermediate-Term Bullish TFCILTD NSE Tourism Finance Corp of India Ltd Symmetrical Continuation Triangle (Bullish) 30.3 34.75 - 35.75 Intermediate

-Term Bullish VIPIND NSE VIP Industries Ltd Symmetrical Continuation Triangle (Bullish) 907 1,057.00 - 1,102.00 Intermediate-Term Bullish

Symbol Exchange Name Event Close at Event Target Price Range Opportunity Type 504614 BSE Sarda Energy and Minerals Ltd Rounded Top^W 138.15 59.00 - 72.00 Long-Term Bearish 506395 BSE Coromandel International Ltd Top Triangle 300.80 236.00 - 248.00 Intermediate-Term Bearish 523810 BSE Kaleidoscope Films Ltd Rounded Top^W 22.00 11.50 - 13.25 Long-Term Bearish ANANTRAJ NSE Anant Raj Industries Ltd Continuation Diamond (Bearish) 63.55 24.00 - 32.00 Intermediate-Term Bearish CADILAHC NSE Cadila Healthcare Ltd Top Triangle 823.10 608.00 - 649.00 Intermediate-Term Bearish COROMANDEL NSE Coromandel International Ltd Top Triangle 300.00 235.00 - 248.00 Intermediate-Term Bearish GREENPOWER NSE Orient Green Power Company Limited Symmetrical Continuation Triangle (Bearish) 12.90 8.20 - 9.00 Intermediate-Term Bearish

Source: Sharekhan.com

BUY MARUTI : Target 1316 : The NEW swift gamechanger

2011-08-31T15:44:00.003+05:30

Stock price of Maruti has seen a sharp correction due to a slew of negative headwinds being faced by the company. Apart from aggressive competition, the company is also facing the impact of the appreciating Yen and the ongoing strike at its Manesar plant.

We believe that the current valuations are pricing in the negatives and provide an attractive investment opportunity. Apart from moderate valuation, we argue that most of the headwinds would eventually recede, thereby placing the company back on the improved growth and margin trajectory. The key concern remains the ongoing tiff with workers at the Manesar plant which may further aggravate and / or get extended for a longer period.

Find the Report from Sharekhan : Download

Source: Sharekhan.com

Technical Buy/Sell Calls : Aug 30th 2011

2011-08-31T15:22:00.003+05:30

World Market Crash : Dow down nearly 400 points

2011-08-18T21:33:00.002+05:30

The Dow Jones industrial average (INDU) dropped 420 points, or 3.7%, after falling as much as 528 points. The S&P 500 (SPX) was down 46 points, or 3.8%; and the Nasdaq Composite (COMP) lost 106 points, or 4.3%.

Buy Tech Mahindra : Target 760

2011-08-18T21:15:00.001+05:30

•Tech Mahindra posted an in-line dollar revenue growth in Q1FY12 of 4.1%. The volumes were weak at 2% qoq with positive cross currency movement backing the decent volume growth. Rupee revenue were up 2.5% qoq to Rs12.9bn impacted mainly by appreciating rupee.

•Volumes from BT (top client) revenues remained flat qoq, in-line with management expectations with reported revenues growing ~1.6% qoq due to GBP appreciation. Non-BT clients grew at strong pace of 5.5% qoq in dollar terms mainly due to the growth in Rest of the World (+6.6 % qoq). On the other hand US/Europe grew slowly at 2.3%/1.8% qoq respectively. Client metric continued to be weak with no incremental addition sequentially.

•On BT outlook, management commentary was cautious as they stated that material portion of its BT business to be coming up for re-bid and that company would have to face competitive pressures in securing the business again. We expect a downward bias to the earlier indicated stable quarterly run-rate of GBP70-72mn as company may have to face pricing pressures going ahead.

•Operating margin was down materially by 183bps qoq to 18.7% against our expectation of 50bps expansion. This came in a disappointment especially in the absence of any wage hikes during the quarter. The correction was mainly due to the sharp decline in utilization by 300bps qoq due to strong fresher intake (especially in BPO), rupee appreciation and higher contribution of BPO/emerging markets. Wage hikes effective 1st July, strong ramp-ups from BPO, possible pricing pressures from BT re-negotiation are near term headwinds for the margin. Net Profits (excluding Satyam) were marginally higher than expectation with strong forex gain (US$8mn) and lower depreciation. Reported PAT was up strongly on the back of impressive performance by Satyam (+Rs960mn as a share of profit). On the tax front, company expects 22-23% tax rate for FY12.

•Employee additions were strong at 4517 (~12% of Q4FY11 base) on the back of ramp-ups in key deals won especially in BPO space (+2800 employees sequentially) in last couple of quarters. Company stated that the addition was largely to back fill attrition and for growth. We expect broadening of employee pyramid to be a material lever going head.

•Company expects ramp-ups of deals won in recent past to fuel growth for H2 FY12 and continuous to be cautiously optimistic on the growth outlook. BT business re-negotiation and higher than expected margin fall were the material negatives during the quarter. Consequent impact of both is expected to bear the brunt on the top-line visibility as well as margin performance (impending salary hikes in Q2 FY12 & higher contribution from BPO). No signs of revival in spending momentum in telecom remains the key overhang.

•Revising estimates to reflect sluggish core business as well as Satyam’s improving performance. Maintain MP.

Buy BPCL: Target 400

2011-08-18T21:08:00.002+05:30

CMP Rs385, Target Rs400, Upside 3.9%
• HPCL reported a net sales growth of 39.6% yoy in Q1 FY12 primarily on back of 11.7% increase in sale volumes and higher realizations (in line with crude oil price movement and price hikes implemented by the government).
• Throughput was higher at 4mn tons v/s 3.9mn tons in Q1 FY11 as both refineries operated for the full quarter.
• Quarterly GRMs were at US$1.2/bbl v/s US$3.22/bbl despite strong global trends owing to inventory losses on the raw material front.
• Gross under recoveries were at Rs95bn as compared to Rs44bn in Q1 FY11. Rs31.7bn was borne by upstream (Rs14.7bn in Q1 FY11), while government contributed Rs32.7bn (as against nil in Q1 FY11).
• HPCL reported a loss of Rs30.8bn v/s loss of Rs18.8bn in Q1 FY11 primarily on back of higher net under recoveries, poor refining performance, 34% jump in interest costs and 15.5% lower other income.
• Maintain Market Performer rating as we feel the upsides from the recent regulatory moves are priced in. We revise our 9-month target price to Rs400

(Rs mn) Q1 FY12 Q1 FY11 % yoy Q4 FY11 % qoq
Net sales 409,169 293,015 39.6 398,922 2.6
Material costs (147,057) (97,951) 50.1 (109,845) 33.9
Purchases (271,150) (197,416) 37.3 (241,210) 12.4
Personnel costs (5,395) (3,662) 47.3 (7,860) (31.4)
Other overheads (11,251) (9,325) 20.7 (18,002) (37.5)
Operating profit (25,684) (15,339) 67.4 22,005 -
OPM (%) (6.3) (5.2) (104) bps 5.5 (1,179) bps
Depreciation (3,886) (3,174) 22.4 (4,015) (3.2)
Interest (2,641) (1,968) 34.2 (2,255) 17.1
Other income 1,397 1,653 (15.5) 1,911 (26.9)
PBT (30,815) (18,829) 63.7 17,645 -
Tax - - - (6,282) -
Effective tax rate (%) - - 35.6
Adjusted PAT (30,815) (18,829) 63.7 11,363 -
Adj. PAT margin (%) (7.5) (6.4) (111) bps 2.8 (1,038) bps
Extra ordinary items 12 (14) - (137) -
Reported PAT (30,803) (18,843) 63.5 11,227 -
Source: Company, India Infoline Research

Financial summary
Y/e 31 Mar (Rs m) FY10 FY11 FY12E FY13E
Revenues 1,076,375 1,341,199 1,489,813 1,660,769
yoy growth (%) (13.7) 24.6 11.1 11.5
Operating profit 25,432 39,298 44,307 45,197
OPM (%) 2.4 2.9 3.0 2.7
Reported PAT 13,014 15,543 16,850 17,464
yoy growth (%) 126.3 18.3 9.5 3.6

EPS (Rs) 38.4 45.8 49.7 51.5
P/E (x) 10.0 8.4 7.7 7.5
Price/Book (x) 1.1 1.0 0.9 0.9
EV/EBITDA (x) 13.4 9.7 8.1 7.7
Debt/Equity (x) 1.8 2.0 1.8 1.6
RoE (%) 11.7 12.9 12.8 12.0
RoCE (%) 8.7 8.6 9.1 9.0
Source: Company, India Infoline Research

Buy Orient Papers; target of Rs 92: Networth Capital

2010-06-23T23:23:00.000+05:30

Networth Capital is bullish on Orient Paper and Industries and has recommended buy rating on the stock with a target of Rs 92.

“Orient Papers & Industries (consolidated) is currently trading at $69 EV/tn is at a steep discount of 35% to the peer group. The current price reflects the value of only the cement business, whilst paper, electricals, investments and land are virtually ‘free’. With significant cost advantage, turnaround in paper business, promising electrical division outlook and significant investments, we initiate coverage on the stock with a BUY rating and a SOTP price target of Rs 92 per share," says

Disclaimer: The views and investment tips expressed by investment experts on moneycontrol.com are their own, and not that of the website or its management.
Source :Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

SEL Textiles file DHRP ; Plans for IPO

2010-03-16T22:55:00.001+05:30

SEL Textiles, a subsidiary of SEL Manufacturing Company and the flagship company of RS Saluja Group, has filed a draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) for public issue of 1.1 crore equity shares.

The issue consists of reservation of 2 lakh equity shares for eligible employees and the remaining 1.08 crore equity shares for public. The issue will constitute 27.76% of the fully diluted post issue paid-up capital of the company.

SEL Manufacturing Company, a holding company, will dilute its stake to 72.06% from current 99.75% through this issue.

SEL Textiles is engaged in the business of manufacturing combed and carded cotton yarns, which are appropriate for apparels, suitings & knitted fabrics.

The company intends to use issue proceeds for setting up a new facility for manufacturing of Terry Towels with an installed capacity of 3600 TPA.

It acquired the existing spinning unit known by the name of ‘Prerna Syntex at Neemrana, Rajasthan from Vast Textiles in June 2009 with an installed capacity of 24,960 spindles to produce 16.80 tonnes cotton yarn per day. The company has entered into an MoU dated August 21, 2009 for the acquisition of a existing spinning unit at Hansi, Haryana from Radhika Fibres India Limited, New Delhi with an installed capacity of 25,200 Spindles to produce about 17.08 tonnes of cotton yarn per day.

For the period of nine months ended on December 2009, it has reported profit of Rs 72.64 lakh on total income of Rs 18.8 crore.

SEL Manufacturing Company had raised over Rs 35 crore via public issue in July 2007.

The book running lead manager to the issue is Saffron Capital Advisors Private Limited and Link Intime India Private Limited is the registrar.

Source :MoneyControl.com

COAL India IPO cleared by SEBI

2010-03-16T22:39:00.003+05:30

The Securities and Exchange Board of India (SEBI) on Saturday approved Coal India Ltd's (CIL) proposal to offer 1% share to its own employees as well as those employed in its subsidiary companies through an initial public offer (IPO), according to the CIL Chairman, Partha S Bhattacharyya.

The regulator previously held that shares could be offered only to the employees of CIL. However, considering that nearly 99% of the four-lakh workers are under the mining subsidiaries wholly-owned by CIL, such restrictions would have cast a shadow over the coal major's plan to convert its workers into stake-holders in the organisation.

Taken from

The Hindu Business Line

Persistent Systems IPO : What are Stock Brokers View?

2010-03-16T22:30:00.002+05:30

Hem Securities has come out with a research report on Persistent Systems' IPO. The broking firm has recommended investor to apply for this issue.

Pune based software product development company is entering capital market with an initial public offering (IPO) of 54,19,706 equity shares of Rs 10 each on March 17, 2010. The company will raise around Rs 157.17-168 crore at price band of Rs 290-310 per equity share.

The report says, "The company is bringing the issue at price band of Rs 290-310 which will turn into P/E multiple of 11.54-12.34 at post issue annualized EPS of Rs 25.12.The company has posted robust financials from last few years. Being one of the market leaders in outsourced software product development service, the company is on the high growth trajectory .Also, the debt free status of the company has added one more feather to its cap. Hence we recommend investor to apply for this issue."

http://www.moneycontrol.com/news_html_files/news_attachment/2010/Persistant%20-%20Hem.pdf

India Needs $500 bn Investment in Next 5 years

2008-04-03T19:33:00.002+05:30

India would have to invest about $500 billion in five years to sustain the current growth rate of around nine per cent and US firms would not miss an opportunity to have a stake in the investments, an official of the US consulate in Chennai said.

The USA would look for opportunities to invest in infrastructure in India, as the nation had been posting a nine per cent growth rate over the last three years, Frederick J Kaplan, consul for public affairs,US consulate general said.

Delivering a special lecture on 'Indo-US' relations at the Bharathidasan University here yesterday, he said the relations between the two countries had gained momentum in the recent past, more specifically when India opted for economic reforms 'under the guidance of Prime Minister Manmohan Singh,' he said.

With the advent of economic reforms in the 1990s,India had envisaged strategic partnership with yet another democracy in varied fields like technology, health, agriculture, defence.

He said there were more than 250 Indian scientists working in the USA on the health front to combat diseases like leprosy, polio, tuberculosis, HIV, cancer and diabetes. Not to exaggerate, American Industry would come to a standstill without the crucial participation of Indian skills and their dedicated service attitude, he said.

Kaplan said American citizens are attracted towards the spiritual and cultural richness of India and expressed the hope that institutions like Bharathidasan University would extend a helping hand towards fostering the centuries old relationship between the two countries.

Kiri Dyes & Chemical IPO Subscription Details

2008-04-03T19:30:00.001+05:30

The initial public offer of 37.5 lakh equity shares of Kiri Dyes and Chemicals was on Wednesday subscribed 1.43 times up to 5 pm, as per the NSE website.

The issue received 53,49,960 bids. Around 30,49,110 bids were received at cut off price.

The company has fixed a price band of Rs 125-Rs 150 per share. The issue constitutes 25 per cent of fully diluted post issue paid up capital. The issue closed today.

The qualified institutional investors' portion of 18,75,000 shares was subscribed 0.92 times, while 5,62,500 shares allocated to non-institutional investor received 1.84 times subscription. However, the retail portion was subscribed only 0.17 times of the 13,12,500 shares allocated to them.

The company has made pre-IPO placement of 12,50,000 shares comprising 1,31,140 shares at Rs 120 and 11,18,860 shares at Rs 115 per share.

RITES IPO DRHP filed with SEBI

2008-04-03T19:27:00.001+05:30

State-run RITES Ltd has filed documents with the markets regulator for an initial public offer for 14 million shares, the company said on Tuesday.

The book-built issue comprises of fresh issue of 10 million shares, and sale of 4 million shares by the federal government, according to the filing. Post issue, the government's stake will come down to 72 per cent from 100 per cent now, the company said.

The company did not specify the size of the issue, but banking sources said the company could raise up to 4 billion rupees through the offer.

RITES, which functions under the railways ministry, operates as a consultancy focussed on the transport, infrastructure and related technologies.

The company has experience on projects in 62 countries around the world. The public offer is the latest in a series of divestments in state-run companies by the federal government.

Last month, state-run Rural Electrification Corp raised 16.4 billion rupees through a 156-million-share public issue that was subscribed 27 times.

Kotak Mahindra Capital, Enam Securities and ICICI Securities are the book-running lead managers to the RITES issue.