Punjab & Sind Bank IPO looks attractive: Motilal
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Punjab & Sind Bank aims growth of 27.5% in FY11
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Monday, December 13, 2010
Which 3 stocks is Ashish Chugh betting on?
Bombay Burmah
This is a stock which is not just a value play as far the core business is concerned but also provides margin of safety in terms of investments which it holds. There is also a possibility of unlocking in some of these investments. This company is a part of the Nusli Wadia group.
It is a 150-year old company and it is probably one of the oldest listed companies on the bourses. It is a diversified company. I would call it the jack of all and master of none who is into tea, coffee, auto ancillary, dental products and laminated products.
As far as their tea and coffee business is concerned, the tea plantations are spread about 2,800 hectares, mostly in the state of Tamil Nadu which comprises of nine estates and seven tea factories which together produce about 10 million kg of tea every year. They also have estates in Tanzania.
The coffee plantation is mainly in the Coorg district of Karnataka. The company has rubber plantations in Indonesia and is also developing property in Kanjurmarg in Mumbai and Coimbatore.
Britannia Industries Limited is a 51% subsidiary of Bombay Burmah. Last year, Bombay Burmah utilized its cash to buy over the stake of Groupe Danone when the exited Britannia Industries and by virtue of which today it holds about 51% through subsidiaries and subsidiaries of subsidiaries which translates into a value of close to Rs 2,500 crore because Britannia has a marketcap of close to Rs 4,800 crore. They also hold about 15% of Bombay Dyeing which is valued at close to Rs 300 crore.
So they have a complex structure of subsidiaries and various subsidiaries of that subsidiary. For FY10 this company recorded an EPS of close to Rs 26. Since it’s more than a 100-year old company, all the assets which are there in the books of the company are valued at historical basis. The value today maybe much more than what is getting reflected in the books of accounts.
Tomorrow, if Mr Wadia decides to give Ness and Jeh their separate spaces, there could be major restructuring and untangling of the complex structure which is currently there in Bombay Burmah which may lead to value unlocking. They also hold a small stake in GoAir whether there is a possibility of value unlocking. Whether these things happen or not, is anybody’s guess. In spite of this, given the price of Rs 380-385 the stock is a great value buy.
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Tata Global Beverages
This is a company which has evolved from an Indian tea farming company to a global beverages company, having a number of brands and focused towards marketing of those brands. The brands which are owned by the company and the group include Tata Tea which is a super brand in India. Besides this, they have Tetley which is present in almost 70 countries and has a market leadership in UK and Canada.
Good Earth is a leader in herbal tea and specialty teas in the US. The other brands of the group are Tata Coffee, Eight O'Clock Coffee which is one for the best selling whole bean coffee in the US. They also have Himalaya Water which is under Mount Everest Mineral water.
Over a period of time, since the Tata Group has changed the name from Tata Tea to Tata Global Beverages, Mr Ratan Tata has indicated that all the beverage business of the group maybe consolidated into Tata Global Beverages, which means that in future you may see a merger of Tata Coffee and Mount Everest Mineral Water into Tata Global Beverages.
The balance Sheet of the company became healthy in 2007 after it sold Glaceau stake to Coca Cola for about USD 1.2 billion and made a profit of close to USD 525 million which translates into a profit of about Rs 2,300-2,400 crore. This infused a lot of cash into the company and the company’s balance sheet became much healthier. Today, the company has cash of close to Rs 2,000 crore. It has got a debt of close to Rs 1,700 crore but the cash in the balance sheet will provide the armour for future expansion of the company.
Mr Ratan Tata’s vision is to make this company into a reckoning player in the global beverage business. In the future we may see the Tata Group introducing a number of healthy drinks like lassi, nimbu pani, cold coffee, iced tea etc into the folder of Tata Global Beverages. Besides this the water business has immense potential.
With regards to valuation, this company has a marketcap of less than Rs 7,000 crore. The sale of the company is almost about Rs 6,500-7,000 crore which means it is available at one time of sales. If you look at other FMCG companies including HLL, Nestle, ITC etc these companies are trading at between 4-7 times of their sales.
Here the perception is that it is a commodity company but over the years it has successfully transformed from a commodity to a marketing and FMCG company. Over a period of time this stock will witness a re-rating and it may be valued at almost the same level as the peer group. Besides that, the company has aggressive plans over the next five-years which may see the turnover becoming 2-3 times from these levels.
Tetley, itself may have a valuation of more than Rs 7,000 crore. This is one of those stocks for an institutional investor or for an investor who doesn’t want to take a risk with small and midcaps. In the largecap space, you have this company which is a value play and it trades at much lower than the peer group. This is a company where you can witness growth to come in the future.
--
Sankhya Infotech
This is one stock for very high risk kinds of investors because these are companies where you can loose the entire capital. Investors should keep that in mind. This company may become a dark horse. There are a few interesting developments which have taken place in the company in the last few months.
In the month of April, HPL Power System bought a 10% stake in this company through market purchases at a price of close to Rs 39. One of the promoters of HPL is Kavita Prasad, who is the daughter of the main promoter of HPL Power Systems. She has joined in as a Director of Sankhya Infotech.
The promoters have also recently allotted about 15 lakh warrants to themselves at a Sebi determined price, which I believe in their case will be close to Rs 30. Against the buying price of Rs 40 HPL Power and Rs 30 at which the promoters are increasing their stake in the company, the stock is currently available at Rs 21-22 which is close to its 52-week low.
Looking at the business of Sankhya Infotech, this is a company which is into a number of domains like e-learning development. They make simulators for the defence segment. The company also caters to the aviation segment and has a number of leaders in aviation like Kingfisher, Emirates, Air France and Boeing as its customers.
As per the latest balance sheet, this company has got an order book which is close to Rs 100 crore. They got listed in 2000 and since then it has been making profits at net level. In FY07 this company made a profit of Rs 7 crore, FY08 Rs 9 crore, FY09 Rs 4.5 crore and in FY10 it made a profit of Rs 2.5 crore. The profit got impacted because of demand from the income tax authorities of about Rs 7 crore which the company appealed against won.
In future you may see the company focusing more on defence and defence related projects, since HPL has a strong position in the defence segment. Against the book value of Rs 60, the stock is available at about Rs 22 and it is available at close to its 52-week low. They have been making profits at net level since the beginning. So this is a stock for high risk investors but at the current price it may be worth the risk.
This is a stock which is not just a value play as far the core business is concerned but also provides margin of safety in terms of investments which it holds. There is also a possibility of unlocking in some of these investments. This company is a part of the Nusli Wadia group.
It is a 150-year old company and it is probably one of the oldest listed companies on the bourses. It is a diversified company. I would call it the jack of all and master of none who is into tea, coffee, auto ancillary, dental products and laminated products.
As far as their tea and coffee business is concerned, the tea plantations are spread about 2,800 hectares, mostly in the state of Tamil Nadu which comprises of nine estates and seven tea factories which together produce about 10 million kg of tea every year. They also have estates in Tanzania.
The coffee plantation is mainly in the Coorg district of Karnataka. The company has rubber plantations in Indonesia and is also developing property in Kanjurmarg in Mumbai and Coimbatore.
Britannia Industries Limited is a 51% subsidiary of Bombay Burmah. Last year, Bombay Burmah utilized its cash to buy over the stake of Groupe Danone when the exited Britannia Industries and by virtue of which today it holds about 51% through subsidiaries and subsidiaries of subsidiaries which translates into a value of close to Rs 2,500 crore because Britannia has a marketcap of close to Rs 4,800 crore. They also hold about 15% of Bombay Dyeing which is valued at close to Rs 300 crore.
So they have a complex structure of subsidiaries and various subsidiaries of that subsidiary. For FY10 this company recorded an EPS of close to Rs 26. Since it’s more than a 100-year old company, all the assets which are there in the books of the company are valued at historical basis. The value today maybe much more than what is getting reflected in the books of accounts.
Tomorrow, if Mr Wadia decides to give Ness and Jeh their separate spaces, there could be major restructuring and untangling of the complex structure which is currently there in Bombay Burmah which may lead to value unlocking. They also hold a small stake in GoAir whether there is a possibility of value unlocking. Whether these things happen or not, is anybody’s guess. In spite of this, given the price of Rs 380-385 the stock is a great value buy.
--
Tata Global Beverages
This is a company which has evolved from an Indian tea farming company to a global beverages company, having a number of brands and focused towards marketing of those brands. The brands which are owned by the company and the group include Tata Tea which is a super brand in India. Besides this, they have Tetley which is present in almost 70 countries and has a market leadership in UK and Canada.
Good Earth is a leader in herbal tea and specialty teas in the US. The other brands of the group are Tata Coffee, Eight O'Clock Coffee which is one for the best selling whole bean coffee in the US. They also have Himalaya Water which is under Mount Everest Mineral water.
Over a period of time, since the Tata Group has changed the name from Tata Tea to Tata Global Beverages, Mr Ratan Tata has indicated that all the beverage business of the group maybe consolidated into Tata Global Beverages, which means that in future you may see a merger of Tata Coffee and Mount Everest Mineral Water into Tata Global Beverages.
The balance Sheet of the company became healthy in 2007 after it sold Glaceau stake to Coca Cola for about USD 1.2 billion and made a profit of close to USD 525 million which translates into a profit of about Rs 2,300-2,400 crore. This infused a lot of cash into the company and the company’s balance sheet became much healthier. Today, the company has cash of close to Rs 2,000 crore. It has got a debt of close to Rs 1,700 crore but the cash in the balance sheet will provide the armour for future expansion of the company.
Mr Ratan Tata’s vision is to make this company into a reckoning player in the global beverage business. In the future we may see the Tata Group introducing a number of healthy drinks like lassi, nimbu pani, cold coffee, iced tea etc into the folder of Tata Global Beverages. Besides this the water business has immense potential.
With regards to valuation, this company has a marketcap of less than Rs 7,000 crore. The sale of the company is almost about Rs 6,500-7,000 crore which means it is available at one time of sales. If you look at other FMCG companies including HLL, Nestle, ITC etc these companies are trading at between 4-7 times of their sales.
Here the perception is that it is a commodity company but over the years it has successfully transformed from a commodity to a marketing and FMCG company. Over a period of time this stock will witness a re-rating and it may be valued at almost the same level as the peer group. Besides that, the company has aggressive plans over the next five-years which may see the turnover becoming 2-3 times from these levels.
Tetley, itself may have a valuation of more than Rs 7,000 crore. This is one of those stocks for an institutional investor or for an investor who doesn’t want to take a risk with small and midcaps. In the largecap space, you have this company which is a value play and it trades at much lower than the peer group. This is a company where you can witness growth to come in the future.
--
Sankhya Infotech
This is one stock for very high risk kinds of investors because these are companies where you can loose the entire capital. Investors should keep that in mind. This company may become a dark horse. There are a few interesting developments which have taken place in the company in the last few months.
In the month of April, HPL Power System bought a 10% stake in this company through market purchases at a price of close to Rs 39. One of the promoters of HPL is Kavita Prasad, who is the daughter of the main promoter of HPL Power Systems. She has joined in as a Director of Sankhya Infotech.
The promoters have also recently allotted about 15 lakh warrants to themselves at a Sebi determined price, which I believe in their case will be close to Rs 30. Against the buying price of Rs 40 HPL Power and Rs 30 at which the promoters are increasing their stake in the company, the stock is currently available at Rs 21-22 which is close to its 52-week low.
Looking at the business of Sankhya Infotech, this is a company which is into a number of domains like e-learning development. They make simulators for the defence segment. The company also caters to the aviation segment and has a number of leaders in aviation like Kingfisher, Emirates, Air France and Boeing as its customers.
As per the latest balance sheet, this company has got an order book which is close to Rs 100 crore. They got listed in 2000 and since then it has been making profits at net level. In FY07 this company made a profit of Rs 7 crore, FY08 Rs 9 crore, FY09 Rs 4.5 crore and in FY10 it made a profit of Rs 2.5 crore. The profit got impacted because of demand from the income tax authorities of about Rs 7 crore which the company appealed against won.
In future you may see the company focusing more on defence and defence related projects, since HPL has a strong position in the defence segment. Against the book value of Rs 60, the stock is available at about Rs 22 and it is available at close to its 52-week low. They have been making profits at net level since the beginning. So this is a stock for high risk investors but at the current price it may be worth the risk.
Sunday, December 12, 2010
Fin Min writes to EPFO on suspension of LIC Hsg Fin invsts
The Finance Ministry has written to the Employees Provident Fund Organisation of India (EPFO) board on the suspension of investments in LIC Housing Financing. The EPFO board had suspended Rs 392 crore worth of investments plan till the inquiry is in progress.
The Finance Ministry asked the EPFO to look at LIC Housing Financing & Parent as a company and not as individual acts. An organisation cannot be discredited on an individual misdemeanour, it said. LIC Housing Financing is AAA Rated and is fully backed by LIC.
The ministry said that all assets in LIC Housing Financing were secure and none impaired.
The Finance Ministry asked the EPFO to look at LIC Housing Financing & Parent as a company and not as individual acts. An organisation cannot be discredited on an individual misdemeanour, it said. LIC Housing Financing is AAA Rated and is fully backed by LIC.
The ministry said that all assets in LIC Housing Financing were secure and none impaired.
TRAI wants 69 telco licences cancelled
The Telecom Regulatory Authority of India (TRAI) has recommended cancelling 69 telecom licences, the government said on Friday, confirming earlier media reports in a case running parallel to an investigation into one of the biggest corruption scandals to hit India this year.
The regulator has recommended cancelling 38 licenses of companies including the Indian joint ventures of Telenor, Sistema and Etisalat's for failing to meet network rollout requirements, the government said.
TRAI wants 69 telco licences cancelled
The TRAI also recommended cancelling 31 other licences "after legal examination," Minister of State for Telecoms Sachin Pilot said in a written reply to a question from an MP.
The TRAI's recommendations are not binding, but the telecoms ministry has said it would send notices to companies that have been named by the regulator, asking them to defend their licences.
The ministry is also sending notices to companies involved in a telecom scam in which firms were allegedly given telecom licenses and spectrum at rock bottom prices, possibly costing the state USD 39 billion in revenue. Many of those companies are accused of being ineligible for the licenses.
The case, which revolves around the sale of telecom licenses at low prices, has led to the resignation of the telecoms minister, and, according to an official audit, has possibly lost the state USD 39 billion in revenue.
It has also frozen the country's parliament for nearly a month as opposition parties have demanded a full parliamentary investigation.
The government has decided to set up a one-man committee of former Supreme Court judge Shivaraj Patil to examine the allocation of licences and spectrum from 2001 to 2009, Telecom Minister Kapil Sibal said on Thursday.
A government auditor said in its recent report that licences were given too cheaply and 85 licence holders were ineligible to get them as they had suppressed facts and submitted false documents.
Sibal said on Thursday his ministry would send notices to all the companies by the end of this week, asking them to explain why their licences should not be cancelled.
He had earlier said there were 119 licencees who have not met rollout requirements.
Telecoms licencees in India are required to cover 90% of the service area in metro cities and 10% of the main town in other parts within the first year.
The cancellation recommendations include 10 licences held by Sistema Shyam Teleservices, eight of Telenor's India joint venture called Uninor, 14 of Loop Telecom, four of Aircel and two of Etisalat DB Telecom.
The 31 licences which the regulator wants cancelled after a legal examination include 13 held by Etisalat DB, 10 of Videocon Telecommunications, six of Loop Telecom and one each of Aircel and Sistema Shyam.
Last month, a source with direct knowledge had told Reuters that the regulator had recommended cancelling 38 licences for not complying with rollout requirements, and to legally examine 31 other licences which had "just met" them.
The regulator has recommended cancelling 38 licenses of companies including the Indian joint ventures of Telenor, Sistema and Etisalat's for failing to meet network rollout requirements, the government said.
TRAI wants 69 telco licences cancelled
The TRAI also recommended cancelling 31 other licences "after legal examination," Minister of State for Telecoms Sachin Pilot said in a written reply to a question from an MP.
The TRAI's recommendations are not binding, but the telecoms ministry has said it would send notices to companies that have been named by the regulator, asking them to defend their licences.
The ministry is also sending notices to companies involved in a telecom scam in which firms were allegedly given telecom licenses and spectrum at rock bottom prices, possibly costing the state USD 39 billion in revenue. Many of those companies are accused of being ineligible for the licenses.
The case, which revolves around the sale of telecom licenses at low prices, has led to the resignation of the telecoms minister, and, according to an official audit, has possibly lost the state USD 39 billion in revenue.
It has also frozen the country's parliament for nearly a month as opposition parties have demanded a full parliamentary investigation.
The government has decided to set up a one-man committee of former Supreme Court judge Shivaraj Patil to examine the allocation of licences and spectrum from 2001 to 2009, Telecom Minister Kapil Sibal said on Thursday.
A government auditor said in its recent report that licences were given too cheaply and 85 licence holders were ineligible to get them as they had suppressed facts and submitted false documents.
Sibal said on Thursday his ministry would send notices to all the companies by the end of this week, asking them to explain why their licences should not be cancelled.
He had earlier said there were 119 licencees who have not met rollout requirements.
Telecoms licencees in India are required to cover 90% of the service area in metro cities and 10% of the main town in other parts within the first year.
The cancellation recommendations include 10 licences held by Sistema Shyam Teleservices, eight of Telenor's India joint venture called Uninor, 14 of Loop Telecom, four of Aircel and two of Etisalat DB Telecom.
The 31 licences which the regulator wants cancelled after a legal examination include 13 held by Etisalat DB, 10 of Videocon Telecommunications, six of Loop Telecom and one each of Aircel and Sistema Shyam.
Last month, a source with direct knowledge had told Reuters that the regulator had recommended cancelling 38 licences for not complying with rollout requirements, and to legally examine 31 other licences which had "just met" them.
Friday, December 10, 2010
Top & Best Mutual Funds
Equity Diversified HDFC Mid-Cap Opportunities
DSP-BR Small & Mid Cap -RP
SBI Magnum Emerging Business
UTI Master Value Fund
Reliance Equity Oppor - RP
IDFC Premier Equity - A
Equity Tax Savings
HDFC Long Term Advantage
Reliance Tax Saver (ELSS)
Can Robeco Equity Tax Saver
Fidelity Tax Advantage
ICICI Pru Tax Plan
HDFC Tax Saver
Balanced Fund
HDFC Childrens Gift (Inv)
ICICI Pru CCP - Gift Plan
HDFC Prudence Fund
HDFC Balanced Fund
Reliance RSF - Balanced
Monthly Income Plan - MIP
HDFC MIP - LTP
Reliance MIP
UTI MIS - Advantage Plan
Birla Sun Life MIP II-Wealth 25
HSBC MIP - Savings Plan
Money Market
IDFC Savings Adv. Fund
SBI Magnum Cash-Liq Float
LIC MF Liquid Fund
HDFC CMF-Treasury Advg
JM Money Manager Fund -RP
HDFC MIP - LTP
Reliance MIP
UTI MIS - Advantage Plan
Birla Sun Life MIP II-Wealth 25
HSBC MIP - Savings Plan
Money Market
IDFC Savings Adv. Fund
SBI Magnum Cash-Liq Float
LIC MF Liquid Fund
HDFC CMF-Treasury Advg
JM Money Manager Fund -RP
Debt
Birla Sun Life GSec - LTF
IDFC SSIF -MTP - RP A
Birla Sun Life FRF - LTP - RP
Tata Floater Fund
Reliance Floating Rate
Sunday, December 5, 2010
Buy AXIS Bank for Long Term
AT FIRST glance, the deal between Axis bank and Enam Securities appears very expensive,considering that the bank is paying nearly 16 times Enam's annualized FY11 profit before
tax (PBT). However, given Enam's major strengths in the investment banking and
institutional broking business and higher profitability compared to its peers, the deal should
pay off for Axis bank in the long term.
The acquisition would enable Axis Bank to enter the league of one-stop-shop financial
institutions, currently dominated by ICICI Bank and HDFC Bank. For Axis Bank's
shareholders, earnings upside following the deal will be limited in the short run, given the
bank's much bigger balance sheet size. But the deal fills in the strategic gap in the bank's
service offerings.
While the deal appears to be on the expensive side, it needs to be noted that it is purely
stock based, which means no cash will change hands. This also means Enam's promoters
would hold on to the equity of Axis Bank for at least one year. Given this restriction and the
recent volatility in stock markets, it is perhaps appropriate that Enam has managed to
attract a premium valuation.
For instance, Enam's closest peer Edelweiss Capital trades at over 12 times its annualized
FY11 PBT. Compared to this, Enam's valuation seems way high. But in the event of a further
decline in emerging stock markets, Axis Bank's stock price may also slide, going forward.
Assuming that it declines by over 10%, Enam's valuations would come in line with those of
its peers.
Another compelling factor is Enam's operations are yielding far superior margins at over
40% compared to 25-30% margins of its peers. Axis Bank would also get access to Enam's
experienced team, which includes over 400 professionals. This is crucial since the
investment banking business is purely relationship driven.
One concern for Axis Bank is the duplication of services. A few analysts point out that the
bank already has an investment banking licence and a broking subsidiary. Given this, it will
be critical to see how well the bank identifies synergies with Enam's acquired operations.
As part of the deal, the bank would issue fresh equity to Enam's promoters, which would
form over 3.3% of the enlarged equity base, post deal. The resulting dilution in the bank's
earnings per share in the short term would be less than 0.5%, which need not stoke
concerns. The bank has most of its fundamentals in place with a healthy growth in the loan
book and a robust asset quality. Its current stock price is 3.4 times its book value, lower
compared to HDFC Bank's 4.7. The bank's stock might see a small dip in the near term,
given the market's perception of steeper valuation of Enam. However, the valuations would
be justified once the acquired businesses start contributing to the bottom-line.
trading calls on wealthsec blog
Top Picks - Fundamental
PTC India Ltd (PTCIND)
CMP - 120
Target - 180
Bajaj Holdings & Investments Ltd (BAJHOL)
CMP - 858
Target - 1182
Shiv-Vani Oil & Gas (SHIOIL)
CMP - 404
Target - 525
Top Picks - Technical
Karnataka Bank Ltd (KARBAN)
CMP – 164.9
Time Horizon - 1 Month
Target - 181.3
Aban Offshore Ltd (ABAOFF)
CMP – 695.5
Time Horizon - 1 Month
Target - 750
Neyveli Lignite Corporation Ltd (NEYLIG)
CMP – 130
Time Horizon - 1 Month
Target - 145
PTC India Ltd (PTCIND)
CMP - 120
Target - 180
Bajaj Holdings & Investments Ltd (BAJHOL)
CMP - 858
Target - 1182
Shiv-Vani Oil & Gas (SHIOIL)
CMP - 404
Target - 525
Top Picks - Technical
Karnataka Bank Ltd (KARBAN)
CMP – 164.9
Time Horizon - 1 Month
Target - 181.3
Aban Offshore Ltd (ABAOFF)
CMP – 695.5
Time Horizon - 1 Month
Target - 750
Neyveli Lignite Corporation Ltd (NEYLIG)
CMP – 130
Time Horizon - 1 Month
Target - 145
Wednesday, December 1, 2010
For Free Demat a/c Call 9321318382
We at Wealth Securities investment company based at Vasai Road, welcome all the investors who are interested in investing into Stock Market
Call us on 09321318382 now to open the account with us
We are a branch of SMC here at Vasai
Call us on 09321318382 now to open the account with us
We are a branch of SMC here at Vasai
November: FII flows hit record Rs18519 cr
The foreign institutional investors (FII) flow year-to-date touched a record high at Rs 18,519.90 crore. The overseas flow in the capital market during the month of November alone was a startling Rs 1,190.70 crore. They made a gross purchase of Rs 5,380.60 crore and gross sales of Rs 4,189.90 crore.
This is the third highest inflow by FIIs in the year 2010. Highest inflow was in September, which was Rs 29,195.80 crore and second highest in October, which was Rs 24,770.80 crore.
In an interview Mark Mobius of Templeton AMC had said that he expects USD 450 billion worth of investments in new issues in emerging markets like India.
However, Ashish Gupta, Director - Equity Research, Credit Suisse said India had been attracting a disproportionately high share compared to its index weight. “Compared to the pace at which it has come to India or the share that India has had total inflows into Asia, we expect moderation. But given the global liquidity environment, we are actually hopeful that foreign inflows into Asia in absolute terms will also be larger than last year. So, we expect 2011 inflows into Asia to be better than the inflows Asia saw in 2010. Although India’s share in that will come down, we are not expecting a major slowdown in the absolute level of flows.”
This is the third highest inflow by FIIs in the year 2010. Highest inflow was in September, which was Rs 29,195.80 crore and second highest in October, which was Rs 24,770.80 crore.
In an interview Mark Mobius of Templeton AMC had said that he expects USD 450 billion worth of investments in new issues in emerging markets like India.
However, Ashish Gupta, Director - Equity Research, Credit Suisse said India had been attracting a disproportionately high share compared to its index weight. “Compared to the pace at which it has come to India or the share that India has had total inflows into Asia, we expect moderation. But given the global liquidity environment, we are actually hopeful that foreign inflows into Asia in absolute terms will also be larger than last year. So, we expect 2011 inflows into Asia to be better than the inflows Asia saw in 2010. Although India’s share in that will come down, we are not expecting a major slowdown in the absolute level of flows.”
Wednesday, November 10, 2010
Long term buy is more meaningful at these levels
Buy following stocks for long term
Lakshmi Electrical Control
Crest Animation
Entegra
Lakshmi Electrical Control
Crest Animation
Entegra
Tuesday, November 9, 2010
Tata Motors posts highest consolidated quarterly profits
Tata Motors reported its highest ever quarterly profit at Rs 2,223 crore for the second quarter against Rs 22 crore for the corresponding period last fiscal.
The company's consolidated revenue went up by 36.5 per cent at Rs 28,782 crore. The company's share price reached new high at Rs 1,270.55 on the BSE on Tuesday in the hope of a record performance. The results were announced post market hours.
The company attributed the performance to increase in sales volume and continuing cost reduction efforts. “The company will continue cost reduction initiatives. Operationally, we will look at every opportunity to curb cost increase,” said Mr Carl-Peter Forster, Managing Director and CEO of Tata Motors.
The Jaguar Land Rover business, which reported Rs 1,715 crore net profit for the three-month period ending September 30 from a loss of Rs 461 crore for the year-ago period, drove the record performance. JLR posted a 22 per cent growth in volume at 54,140 units.
Standalone net dips
The standalone net profit of Tata Motors at Rs 433 crore, fell 41 per cent from Rs 729 crore for the corresponding quarter a year ago. This is because of the Rs 420 crore income from the sale of shares in subsidiary company's Tata Motors received during the second quarter of last year. If this exceptional income is removed, the profit after tax grew by 21 per cent for the just ended quarter.
The net income from the domestic business grew 45 per cent to Rs 12,420 crore as the truck and bus sales grew 23 per cent to 1.11 lakh vehicles and car sales grew 36 per cent to 82,564 units.
About Nano sales which decreased in the recent months and production ramp up, Mr Forster said, “We have to break new grounds with Nano sales. The production will be adjusted to the retail sales.”
For Jaguar Land Rover, the engine supply constraints which slowed its sales still continue. The company is preparing to launch Range Rover Evoque in the summer of 2011. UK continues to be the major market for the JLR with more than 14,000 unit sales for the quarter while China reported highest growth at 72 per cent to 5,801 units. North America too reported 27 per cent growth at more than 12,000 unit sales.
“The better product mix and better market mix drove the JLR volumes. New Jaguar XJ and increase of selling price led to good growth,” said Mr Ramakrishnan, Chief Financial Officer, Tata Motors.
Outlook
“There is a strong growth in demand. However, supply constraints and raw material cost pressures still continue,” said Mr Ramakrishnan.
Another subsidiary Tata Motors Finance's net profit more than doubled to Rs 44 crore while Tata Daewoo net profit declined to Rs 8 crore.
The company's consolidated revenue went up by 36.5 per cent at Rs 28,782 crore. The company's share price reached new high at Rs 1,270.55 on the BSE on Tuesday in the hope of a record performance. The results were announced post market hours.
The company attributed the performance to increase in sales volume and continuing cost reduction efforts. “The company will continue cost reduction initiatives. Operationally, we will look at every opportunity to curb cost increase,” said Mr Carl-Peter Forster, Managing Director and CEO of Tata Motors.
The Jaguar Land Rover business, which reported Rs 1,715 crore net profit for the three-month period ending September 30 from a loss of Rs 461 crore for the year-ago period, drove the record performance. JLR posted a 22 per cent growth in volume at 54,140 units.
Standalone net dips
The standalone net profit of Tata Motors at Rs 433 crore, fell 41 per cent from Rs 729 crore for the corresponding quarter a year ago. This is because of the Rs 420 crore income from the sale of shares in subsidiary company's Tata Motors received during the second quarter of last year. If this exceptional income is removed, the profit after tax grew by 21 per cent for the just ended quarter.
The net income from the domestic business grew 45 per cent to Rs 12,420 crore as the truck and bus sales grew 23 per cent to 1.11 lakh vehicles and car sales grew 36 per cent to 82,564 units.
About Nano sales which decreased in the recent months and production ramp up, Mr Forster said, “We have to break new grounds with Nano sales. The production will be adjusted to the retail sales.”
For Jaguar Land Rover, the engine supply constraints which slowed its sales still continue. The company is preparing to launch Range Rover Evoque in the summer of 2011. UK continues to be the major market for the JLR with more than 14,000 unit sales for the quarter while China reported highest growth at 72 per cent to 5,801 units. North America too reported 27 per cent growth at more than 12,000 unit sales.
“The better product mix and better market mix drove the JLR volumes. New Jaguar XJ and increase of selling price led to good growth,” said Mr Ramakrishnan, Chief Financial Officer, Tata Motors.
Outlook
“There is a strong growth in demand. However, supply constraints and raw material cost pressures still continue,” said Mr Ramakrishnan.
Another subsidiary Tata Motors Finance's net profit more than doubled to Rs 44 crore while Tata Daewoo net profit declined to Rs 8 crore.
Friday, November 5, 2010
Happy Diwali
Happy Diwali to you and your family from Wealth Securities
A franchisee of SMC based in Apeksh Apt., Sai Nagar, Vasai Road, Pin 401202
Thanks and Regards,
Ankit Desai
Mehul Katariya
A franchisee of SMC based in Apeksh Apt., Sai Nagar, Vasai Road, Pin 401202
Thanks and Regards,
Ankit Desai
Mehul Katariya
Tuesday, November 2, 2010
RBI raises key rates; FM: may impact short-term growth
Hardening its stance on inflation, RBI Tuesday raised some key policy rates prompting finance minister Pranab Mukherjee to caution that it could have some short-term negative impact on growth.
The apex bank increased its short-term lending (repo) and borrowing (reverse repo) rates by 25 basis points to 6.25 percent and 5.25 percent respectively, but the commercial banks said they would not increase their lending rates immediately.
"This tightening may have some negative impact on the growth rate, but I expect such an effect to be only a short one. In the medium to long term, the changes announced by the RBI today should actually help the Indian economy do better in terms of growth," Mukherjee said.
This was the sixth time this year that the Reserve Bank of India (RBI) has raised repo and reverse repo rates. The apex bank, however, hoped that going forward it may not have to up the rates further.
India Inc expressed apprehensions that the RBI decision would make loans expensive and may dampen industrial growth.
"This (RBI move) in turn would adversely impact the interest sensitive sectors like consumer durables and auto, which have led the growth hitherto as also on the housing demand," Ficci secretary feneral Amit Mitra said.
RBI has pegged the growth rate for the current fiscal at 8.5 percent, up from 7.4 percent in the previous fiscal.
The mid-year policy initiatives, according to Planning Commission deputy chairman Montek Singh Ahluwalia, were in sync with the actions of other central banks.
Although banks said they would refrain from immediately hiking rates, they may not be able to hold on to the existing rate-level for long as demand for credit increases and depositors put pressure on them to raise interest rates.
"So, whether it (hike by RBI) will raise pressure on the system? Eventually, it will. Whether there would be immediate reaction? Not likely," said SBI chairman O P Bhatt.
The hike in the key interest rates according to RBI is aimed at containing inflation, which is above the "comfort level."
Inflation was 8.62 percent in September and food inflation was 13.75 percent in mid-October. RBI has pegged inflation at 5.5 percent by the fiscal- end.
"Today is not such an easy time. The signals from the economy have been mixed. Industrial growth showed a slight slowing down in August. Inflation, while less than what it was some months ago, is still not in a zone where we can sit back," Mukherjee added.
RBI, however, refrained from raising the cash reserve ratio (CRR), which is the proportion of deposits that the banks keep with the central bank, in view of tight liquidity situation.
"I am glad that RBI has risen to the challenge and used a very careful combination of policies to complement what the government is doing to steer our economy to grow better and harness inflation," Mukherjee said.
Stock markets reacted mildly to the hike in policy rates by RBI with the benchmark Sensex ending the day flat. The 30-share index closed 9.94 points lower at 20,345.69 points.
"RBI's move to hike the key policy rates are in line with the Street's expectations and equity markets have not reacted much to the announcement since it has already be factored in," Axis Mutual Fund CEO and MD Rajiv Anand said.
Expressing concern at excessive borrowing for homes, the Reserve Bank also tightened norms for housing loans as well as controversial teaser loans.
The Reserve Bank also cautioned against rising stock and gold prices.
It said huge capital inflows in emerging economies are resulting in appreciation of local currencies and asset prices.
The central bank said it may intervene if forex flows are lumpy and volatile.
The apex bank increased its short-term lending (repo) and borrowing (reverse repo) rates by 25 basis points to 6.25 percent and 5.25 percent respectively, but the commercial banks said they would not increase their lending rates immediately.
"This tightening may have some negative impact on the growth rate, but I expect such an effect to be only a short one. In the medium to long term, the changes announced by the RBI today should actually help the Indian economy do better in terms of growth," Mukherjee said.
This was the sixth time this year that the Reserve Bank of India (RBI) has raised repo and reverse repo rates. The apex bank, however, hoped that going forward it may not have to up the rates further.
India Inc expressed apprehensions that the RBI decision would make loans expensive and may dampen industrial growth.
"This (RBI move) in turn would adversely impact the interest sensitive sectors like consumer durables and auto, which have led the growth hitherto as also on the housing demand," Ficci secretary feneral Amit Mitra said.
RBI has pegged the growth rate for the current fiscal at 8.5 percent, up from 7.4 percent in the previous fiscal.
The mid-year policy initiatives, according to Planning Commission deputy chairman Montek Singh Ahluwalia, were in sync with the actions of other central banks.
Although banks said they would refrain from immediately hiking rates, they may not be able to hold on to the existing rate-level for long as demand for credit increases and depositors put pressure on them to raise interest rates.
"So, whether it (hike by RBI) will raise pressure on the system? Eventually, it will. Whether there would be immediate reaction? Not likely," said SBI chairman O P Bhatt.
The hike in the key interest rates according to RBI is aimed at containing inflation, which is above the "comfort level."
Inflation was 8.62 percent in September and food inflation was 13.75 percent in mid-October. RBI has pegged inflation at 5.5 percent by the fiscal- end.
"Today is not such an easy time. The signals from the economy have been mixed. Industrial growth showed a slight slowing down in August. Inflation, while less than what it was some months ago, is still not in a zone where we can sit back," Mukherjee added.
RBI, however, refrained from raising the cash reserve ratio (CRR), which is the proportion of deposits that the banks keep with the central bank, in view of tight liquidity situation.
"I am glad that RBI has risen to the challenge and used a very careful combination of policies to complement what the government is doing to steer our economy to grow better and harness inflation," Mukherjee said.
Stock markets reacted mildly to the hike in policy rates by RBI with the benchmark Sensex ending the day flat. The 30-share index closed 9.94 points lower at 20,345.69 points.
"RBI's move to hike the key policy rates are in line with the Street's expectations and equity markets have not reacted much to the announcement since it has already be factored in," Axis Mutual Fund CEO and MD Rajiv Anand said.
Expressing concern at excessive borrowing for homes, the Reserve Bank also tightened norms for housing loans as well as controversial teaser loans.
The Reserve Bank also cautioned against rising stock and gold prices.
It said huge capital inflows in emerging economies are resulting in appreciation of local currencies and asset prices.
The central bank said it may intervene if forex flows are lumpy and volatile.
Sunday, October 31, 2010
New IIP from Jan; to reflect better picture
The government is likely to come out with a more representative data on industrial production from January next year that would include about 100 new items, while excluding the obsolete ones."The December data is expected to come out on January 12, 2011, for which the new series of index of industrial production (IIP) would be released," an official told.
The new series would be more representative and will have more items in the rejigged basket.
Besides, it will take 2004-05 as the base year that will reflect industrial scenario better than the base of 1993-94 used currently.
"The industry ministry is waiting for Planning Commission's opinion. They have some issues that will be sorted out soon. The new series will then be approved by Committee of Secretaries," the official added.
Currently, IIP basket has about 350 items for calculating the monthly factory output figures. The new series would be more representative and would constitute over 500 products, the official said.
It is also expected to do away with obsolete items and add those products which have entered the markets in recent years. The official, however, did not divulge the details of new products and the old ones which will be deleted.
Industrial growth slowed down to 5.6 percent in August from 10.6 percent in the same month of the previous fiscal.
IIP data has been often criticised for not catching up with the times and providing archaic figures, compared to the ones provided by other agencies like Centre for Monitoring Indian Economy (CMIE).
According to industry body Ficci there is a strong momentum in industrial growth and it is expected to expand by 9 percent in the current financial year.
The government has recently rolled out a new wholesale price-based index for measuring inflation.
Thursday, October 21, 2010
TCS and other results rocks....
* Novartis India Q2 net up 22% to Rs. 40.5 cr
Drug firm Novartis India on Thursday said its net profit rose by 21.98 per cent to Rs. 40.5 crore for the second quarter ended September 30, 2010, over the same period previous fiscal.
* Ambuja Cements net down at Rs. 152 cr
Cement major Ambuja Cements on Thursday said that it has clocked a net sales of Rs. 1,564 crore in the third quarter of the current fiscal, down 2.9 per cent from Rs. 1,611 crore in the year-ago period. Net sales declined on account of lower realisations, the company said.
* McDonald's Q3 net income jumps 10%
McDonald's frappes, smoothies and dollar menu drew in more customers in the third quarter, pushing the world's largest burger chain's net income up 10 per cent.
* TCS tops expectations, profit up at Rs. 2,169 cr
Indian IT major beat the Street’s expectations after it announced a 13.8 per cent quarter-on-quarter rise in its second quarter.
# Output outage pulls down ACC net by 79.2%
# GlaxoSmithKline Q3 net down 3.5%
# Sensex regains 20K in 388-point rebound
# Allahabad Bank Q2 net up 20% on NII growth
# TCS rises over 1% on hopes of strong Q2 numbers
# Ashok Leyland gains 2% on good Q2 numbers
# Kotak Bank consolidated Q2 net up 21%
Drug firm Novartis India on Thursday said its net profit rose by 21.98 per cent to Rs. 40.5 crore for the second quarter ended September 30, 2010, over the same period previous fiscal.
* Ambuja Cements net down at Rs. 152 cr
Cement major Ambuja Cements on Thursday said that it has clocked a net sales of Rs. 1,564 crore in the third quarter of the current fiscal, down 2.9 per cent from Rs. 1,611 crore in the year-ago period. Net sales declined on account of lower realisations, the company said.
* McDonald's Q3 net income jumps 10%
McDonald's frappes, smoothies and dollar menu drew in more customers in the third quarter, pushing the world's largest burger chain's net income up 10 per cent.
* TCS tops expectations, profit up at Rs. 2,169 cr
Indian IT major beat the Street’s expectations after it announced a 13.8 per cent quarter-on-quarter rise in its second quarter.
# Output outage pulls down ACC net by 79.2%
# GlaxoSmithKline Q3 net down 3.5%
# Sensex regains 20K in 388-point rebound
# Allahabad Bank Q2 net up 20% on NII growth
# TCS rises over 1% on hopes of strong Q2 numbers
# Ashok Leyland gains 2% on good Q2 numbers
# Kotak Bank consolidated Q2 net up 21%
Wednesday, October 20, 2010
Results are here....
Forthcoming Results for Q2:
| October 21, 2010 | ||||
| ACC | Corporation Bank | Indiabulls Fin | Pennar Inds | Subuthi Finance |
| AKZOINDIA | Dairyfield | Indowind Ener | Peoples Invest | Sun Pharma Adv |
| Allahabad Bank | DIC India | Info Edge India | Persistent Sys | Supreme Petro |
| Alstom Projects | Eclerx Serv | JM Financial | PH Capital | TCS |
| Ambuja Cements | Esab India | JRG Securities | Prime Sec | Technocraft |
| Arunoday Mills | Flex Foods | KAR Mobiles | Rajratan Global | TVS Motor |
| Asahi Songwon | Foseco India | Mahindra Forg | Sasken Comm | Wipro |
| Austin Engr | Fresenius Kabi | Monotype India | Silver Smith | XPRO India |
| Bajaj Corp | Gopal Iron | Multibase India | SKF India | Zenith Fibres |
| Camlin Fine | GS Auto | Novartis India | South Indian Bank | Zensar Tech |
| Chromatic India | Hind Syntex | Oil Country Tub | Sterlite Tech | |
| October 22, 2010 | ||||
| Acrow India | Cat Tech | Intec Cap | Nivi Trading | SOUTHERN ISP |
| Ador Fontech | Chennai Petro | IPCA Lab | Paushak | Tamil Nadu News |
| Ador Multi | D B CORP | Jayant Agro | Piramal Health | Taneja Aero |
| Ajanta Pharma | Daiichi Kark | JSL Stainless | Plastiblends | Tata Elxsi |
| AP Paper | Danlaw Tech | Kabra Extr | Poly Medicure | TECIL Chemicals |
| Apte Amalg | Deep Inds | Kakatiya Tex | Ram Kaashyap | THANGAMAYIL |
| Aptech | Dewan Housing | Kale Consl | Rane Brake | Thomas Cook |
| Aries Agro | Dynavision | Kalyanpur Cem | Ravalgaon Sugar | Tilaknagar Inds |
| AVT Nat Products | Emco | Kirloskar Ferro | Redington India | Tips Inds |
| Bafna Pharma | English Indian | Kirloskar Oil | Reliance Chem | Torrent Cables |
| Bank of India | Envair Elect | KSB Pumps | Sagar Cements | Triton Valves |
| Bank of Maharashtra | FAG Bearings | Liberty Phos | Sangam India | TT |
| Bhagwandas Met | Fairfield Atlas | Libord Info | Savant Info | Vardhman Tex |
| Bhansali Engr | Finolex Inds | Libord Sec | Shree Rani Sati | Vijaya Bank |
| Binani Cement | Fulford India | Mahindra & Mah Fin | Simmonds Marshall | Wipro |
| Binani Inds | Geometric | Mirc Elect | SKS Microfinance | |
| Biocon | Global Boards | Modern India | Smartlink Net | |
| Borosil Glass | Indian Bank | NIIT | Sobha Dev | |
| October 23, 2010 | ||||
| Ador Welding | Diamines & Chem | GMR Inds | Nilkamal | Sumeru Inds |
| Agarwal Hold | Dr Reddys Lab | Gujarat Ambuj Ex | Nucleus Soft | Surya Fun City |
| Ahmedabad Steel | E Com Infotech | Hydro S&S Inds | Patels Airtmp | Torrent Pharma |
| Andhra Sugars | Edelweiss Cap | Ishita Drugs | Piramal Life | Uflex |
| Artson Engr | Enkei Castalloy | Jasch Inds | Safari Inds | Vantage Corp |
| Avanti Feeds | Facor Alloys | Jog Engineering | Sakuma Exports | Velan Hotels |
| Axis It&T | Ferro Alloys | KBS Capital | Shalimar Paint | Vivimed Labs |
| Bhageria Dye | Fineline Circ | Mangalam Cem | Shantivijay Jew | Woolite Merc |
| Bharat Forge | Finolex Cables | Menon Bearings | Solvay Pharma | Yuken India |
| Cheslind Tex | Force Motors | National Oxygen | Somany Cerm | |
| Confidence Petro | Garware Wall | Natural Cap | Span Diag | |
| October 24, 2010 | ||||
| Mayur Floorings | Onmobile Global |
Good Results so far...
* Kotak Bank consolidated Q2 net up 21%
Private sector lender Kotak Mahindra Bank (KMB) on Wednesday reported a21 per cent jump in consolidated net profit to Rs. 364 crore for the quarter ended September, helped by a healthy rise in advances. The lender's net profit stood at Rs. 299.77 crore in the second quarter of the last fiscal.
* Hindustan Zinc Q2 net up 1.47% on high demand
Vedanta Group firm Hindustan Zinc on Wednesday posted 1.47 rise in profit at Rs. 948.72 crore for the second quarter of the current fiscal, as against the year-ago period, on improved demand and rising prices. Hindustan Zinc had a net profit of Rs. 934.95 crore in the same quarter last fiscal.
* YES Bank Q2 profit soars 58% to Rs. 176cr
* Canara Bank net up 11% to Rs. 1,008 cr
* Nifty slips below 6000, metals lose lustre
* Yahoo profit rises, but revenue is flat
* Flush with cash, will Apple go shopping?
* Bajaj Q2 PAT grows 69% to Rs. 682 cr
* Goldman Sachs tops forecasts, earns $1.74 bn
* Cadila Healthcare Q2 net up 30% to Rs. 170 cr
* Alembic Q2 net up 63% to Rs. 21 cr
* HDFC Bank Q2 net up 33% at Rs. 912 cr
* BankAm posts $7.7 billion loss on special charge
* Coca-Cola Q3 net income up 8.4%
* Bajaj Auto Q2 net profit soars 69%
* Sensex gathers steam as ICICI Bank, RIL rise
* Cadila Healthcare Q2 net up 29.5%
* Sesa Goa rises 2% after good Q2 numbers
Private sector lender Kotak Mahindra Bank (KMB) on Wednesday reported a21 per cent jump in consolidated net profit to Rs. 364 crore for the quarter ended September, helped by a healthy rise in advances. The lender's net profit stood at Rs. 299.77 crore in the second quarter of the last fiscal.
* Hindustan Zinc Q2 net up 1.47% on high demand
Vedanta Group firm Hindustan Zinc on Wednesday posted 1.47 rise in profit at Rs. 948.72 crore for the second quarter of the current fiscal, as against the year-ago period, on improved demand and rising prices. Hindustan Zinc had a net profit of Rs. 934.95 crore in the same quarter last fiscal.
* YES Bank Q2 profit soars 58% to Rs. 176cr
* Canara Bank net up 11% to Rs. 1,008 cr
* Nifty slips below 6000, metals lose lustre
* Yahoo profit rises, but revenue is flat
* Flush with cash, will Apple go shopping?
* Bajaj Q2 PAT grows 69% to Rs. 682 cr
* Goldman Sachs tops forecasts, earns $1.74 bn
* Cadila Healthcare Q2 net up 30% to Rs. 170 cr
* Alembic Q2 net up 63% to Rs. 21 cr
* HDFC Bank Q2 net up 33% at Rs. 912 cr
* BankAm posts $7.7 billion loss on special charge
* Coca-Cola Q3 net income up 8.4%
* Bajaj Auto Q2 net profit soars 69%
* Sensex gathers steam as ICICI Bank, RIL rise
* Cadila Healthcare Q2 net up 29.5%
* Sesa Goa rises 2% after good Q2 numbers
Monday, October 18, 2010
Essar Oil Result is out
Essar Oil Jul-Sep revenue Rs. 124.15 bln vs Rs. 111.44 bln yr ago
Gross refining margin $6.49/bbl
Refinery throughput 3.69 mln tn
EBITDA Rs. 6.34 bln
Revenue Rs. 124.15 bln
Gross refining margin $6.49/bbl
Refinery throughput 3.69 mln tn
EBITDA Rs. 6.34 bln
Revenue Rs. 124.15 bln
Bajaj Finance Q2 PAT up 143% at 52.8 crore
Buoyed by a strong volume growth in consumer and SME business lines, Bajaj Finance Ltd reported a 143 per cent jump in its PAT for the second quarter ending September 30, 2010, at Rs. 52.8 crore as against Rs. 21.69 crore in the year-ago period.
Total income surged 49 per cent at Rs. 326.4 crore from Rs. 219.7 crore in the year-ago period, according to a company statemnet.
Deployments to the consumer durables witnessed a 58 per cent increase during the quarter at Rs. 401 crore as against Rs. 211 crore in the year-ago period while small and medium enterprise business lines saw a 71 per cent jump in deployments at Rs. 251 crore as against Rs. 157 crore in the year-ago period.
In two-wheelers, the company's deployment stood at Rs. 472 crore in during the second quarter as against Rs. 312 crore in the year-ago period, up 74 per cent.
The company's customer-base increased from 1,93,075 to 3,17,398 while total deployment rose 112 per cent to Rs. 2,128 crore from Rs. 1,003 crore in the year-ago period.
Loan loss and provisions were Rs. 61.5 crore (including Rs. 19.4 crore of one-time accelerated provision in Q2FY11 as against Rs. 58.5 crore in the correponding period of the previous fiscal. Adjusted for this accelerated provision, loan loss and provisions would have been Rs. 42.1 crore.
The company's capital adequacy ratio, including tier-II capital and excluding current year's profits stood at 21 per cent.
The company's NPA provision coverage ratio as at September 2010 stood at 75 per cent.
Total income surged 49 per cent at Rs. 326.4 crore from Rs. 219.7 crore in the year-ago period, according to a company statemnet.
Deployments to the consumer durables witnessed a 58 per cent increase during the quarter at Rs. 401 crore as against Rs. 211 crore in the year-ago period while small and medium enterprise business lines saw a 71 per cent jump in deployments at Rs. 251 crore as against Rs. 157 crore in the year-ago period.
In two-wheelers, the company's deployment stood at Rs. 472 crore in during the second quarter as against Rs. 312 crore in the year-ago period, up 74 per cent.
The company's customer-base increased from 1,93,075 to 3,17,398 while total deployment rose 112 per cent to Rs. 2,128 crore from Rs. 1,003 crore in the year-ago period.
Loan loss and provisions were Rs. 61.5 crore (including Rs. 19.4 crore of one-time accelerated provision in Q2FY11 as against Rs. 58.5 crore in the correponding period of the previous fiscal. Adjusted for this accelerated provision, loan loss and provisions would have been Rs. 42.1 crore.
The company's capital adequacy ratio, including tier-II capital and excluding current year's profits stood at 21 per cent.
The company's NPA provision coverage ratio as at September 2010 stood at 75 per cent.
L&T Q2 net profit up 31% at Rs 765 cr
L&T posted a better-than-expected result for the second quarter after its net profit rose 32 per cent. The company said that its net profit rose to Rs. 764.98 crore in quarter ended September 30, beating the average estimate Rs. 663 crore
The engineering and construction major’s net sales rose 17.66 per cent to Rs. 9,260 crore during the second quarter, topping the estimates of analysts who saw it at Rs. 8,644 crore in an NDTV poll.
The engineering and construction major’s net sales rose 17.66 per cent to Rs. 9,260 crore during the second quarter, topping the estimates of analysts who saw it at Rs. 8,644 crore in an NDTV poll.
HDFC Q2 net profit up 22% at Rs 808 cr
Leading mortgage firm Housing Development Finance Corporation (HDFC) today reported a 21.63 per cent rise in net profit to Rs. 807.54 crore for the second quarter ended September 30, led by higher loan disbursal.
The firm had posted a net profit of Rs. 663.94 crore during the corresponding quarter of last fiscal, HDFC said in
a filing to the Bombay Stock Exchange.
It also reported an increase of 4.21 per cent in its total income during the second quarter to Rs. 2,970.22 crore,
as against Rs. 2,850.23 crore in the year-ago period.
HDFC reported a 18.73 per cent increase in its loan book at Rs. 1,06,287 crore at the end of September, compared to Rs.
89,519 crore in the corresponding period of 2009-10. During the quarter ended September 30, HDFC has allotted
53.73 lakh equity shares of Rs. 2 each pursuant to conversion of foreign currency convertible bonds and exercise of stock
options by its employees and directors.
During the quarter under review, the mortgage firm sub-divided shares of face value of Rs. 10 to Rs. 2 each with
effect from August 21, 2010. The share split was in the ratio of 1:5.
Meanwhile, the housing finance firm also announced the appointment of Keki M Mistry as Vice Chairman for a period of
five years effective November 14, subject to shareholders approval.
The firm had posted a net profit of Rs. 663.94 crore during the corresponding quarter of last fiscal, HDFC said in
a filing to the Bombay Stock Exchange.
It also reported an increase of 4.21 per cent in its total income during the second quarter to Rs. 2,970.22 crore,
as against Rs. 2,850.23 crore in the year-ago period.
HDFC reported a 18.73 per cent increase in its loan book at Rs. 1,06,287 crore at the end of September, compared to Rs.
89,519 crore in the corresponding period of 2009-10. During the quarter ended September 30, HDFC has allotted
53.73 lakh equity shares of Rs. 2 each pursuant to conversion of foreign currency convertible bonds and exercise of stock
options by its employees and directors.
During the quarter under review, the mortgage firm sub-divided shares of face value of Rs. 10 to Rs. 2 each with
effect from August 21, 2010. The share split was in the ratio of 1:5.
Meanwhile, the housing finance firm also announced the appointment of Keki M Mistry as Vice Chairman for a period of
five years effective November 14, subject to shareholders approval.
Sunday, October 17, 2010
India, China not playing for '2nd place': Obama
Insisting that the US cannot afford to cut its education budget, President Barack Obama has said it has to compete with countries like India and China which are "not playing for a second place" and voiced opposition to tax breaks to the American firms shipping jobs overseas.Obama, who was here for an election rally ahead of the November polls in support of Governor Deval Patrick, said the Republicans want to cut education spending by 20 percent to help pay for a 700-billion-dollar tax break that only the wealthiest 2 percent Americans will ever see.
The Republicans may think that a cut in education spending is a "good idea" but countries like India and China don't, he said.
"We see an America where every citizen has the skills and training to compete with any worker in the world. The other side might think it's a good idea to cut education by 20 percent, but you don't think it's a good idea. You know who else doesn't think it's a good idea -- China, and South Korea, and Germany, and India," Obama told an audience of about 8000 Saturday.
He said these countries are boosting education spending, not cutting back. "They understand that whoever is able to train their young people will be able to out-compete any other country in the world. Those countries are not playing for second place. And the United States doesn't play for second place. We play for first."
Obama said it was for this reason that tens of billions of dollars in taxpayer subsidies that used to go to big banks are now going where they should -- to students and families.
"That's why we want to make our new college tax credit permanent, which will be worth 10,000 dollars in tuition relief for every student in America," he said.
Stressing that taxpayers should never again pay a bailout for Wall Street's mistakes, Obama said he will "fight the efforts of some in the other party to privatise Social Security, because as long as I'm President, nobody is going to take the retirement savings of a generation and hand it over to Wall Street.
"That's why we won't go back to the days when insurance companies and Wall Street banks had free rein to run roughshod over the middle class."
Obama further said the country's future must be "driven by American innovation and American ingenuity."
He said tax breaks should be given to small businesses, US manufacturers and clean energy companies that are creating jobs in the US "because I don't want to see all the solar panels and wind turbines and electric cars built in Europe or in Asia."
"We don't want to keep giving tax breaks to corporations that ship our jobs overseas," he said.
Thursday, October 14, 2010
Open FREE DEMAT/TRADING a/c for LifeTime
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GDP to grow by 9.2% in 2010-11: CMIE
The Indian economy is expected to grow by 9.2 percent in 2010-11 following impressive growth in the manufacturing and services sectors, Centre for Monitoring Indian Economy (CMIE) said here.
"We maintain that the Indian economy will grow by 9.2 percent in 2010-11, as we expect impressive growth in the manufacturing and services sectors as well," CMIE said in a statement.
The Index of Industrial Production (IIP) dropped dramatically to 5.6 percent in August, after growing by 13.8 percent in July. It had recorded a growth of 11.2 percent in the June quarter, but we believe that the growth was much higher than 11.2 percent, CMIE said.
This is because sales revenues of the manufacturing companies rose by 23.8 percent, while the rate of inflation in manufactured products (including petroleum products) was 8.2 percent, implying that sales volumes grew by about 14.4 percent.
The IIP has a very old base year (1993-94), outdated weights and a fixed frame of products and companies, and had miscalculated industrial growth for the preceding two years (2008-09 and 2009-10) as well. It is therefore imperative that the index is corrected at the earliest to enable meaningful analysis, CMIE said.
In August, the rate of inflation touched a six-month low of 8.5 percent. It was calculated as per the new series released on 14 September with 2004-05 as the base year. A moderation in the prices of primary food articles, manufactured food products and paper & paper products helped keep inflation in check.
We expect WPI-based inflation to moderate to 7.9 percent in 2010-11, as compared to our earlier projection of 8.5 percent based on the old series, it said.
CMIE expects that the agricultural production to grow by 7.2 percent pc in 2010-11.
The withdrawal of the southwest monsoon has been delayed this year, and the plentiful rain across large parts of the country has encouraged farmers to bring more land under cultivation.
As of October 7, kharif sowing was completed across 1,022 lakh hectares, which was 64 lakh hectares more than the acreage reported in the corresponding period of 2009.
Cumulative rainfall for the season (June-September) is 102 percent of the long period average, according to the India Meteorological Department's end-of-season report.
Agricultural production is therefore expected to grow by a healthy 7.2 percent in 2010-11, after recording a 6.6 percent decline in the preceding fiscal, CMIE said.
"We maintain that the Indian economy will grow by 9.2 percent in 2010-11, as we expect impressive growth in the manufacturing and services sectors as well," CMIE said in a statement.
The Index of Industrial Production (IIP) dropped dramatically to 5.6 percent in August, after growing by 13.8 percent in July. It had recorded a growth of 11.2 percent in the June quarter, but we believe that the growth was much higher than 11.2 percent, CMIE said.
This is because sales revenues of the manufacturing companies rose by 23.8 percent, while the rate of inflation in manufactured products (including petroleum products) was 8.2 percent, implying that sales volumes grew by about 14.4 percent.
The IIP has a very old base year (1993-94), outdated weights and a fixed frame of products and companies, and had miscalculated industrial growth for the preceding two years (2008-09 and 2009-10) as well. It is therefore imperative that the index is corrected at the earliest to enable meaningful analysis, CMIE said.
In August, the rate of inflation touched a six-month low of 8.5 percent. It was calculated as per the new series released on 14 September with 2004-05 as the base year. A moderation in the prices of primary food articles, manufactured food products and paper & paper products helped keep inflation in check.
We expect WPI-based inflation to moderate to 7.9 percent in 2010-11, as compared to our earlier projection of 8.5 percent based on the old series, it said.
CMIE expects that the agricultural production to grow by 7.2 percent pc in 2010-11.
The withdrawal of the southwest monsoon has been delayed this year, and the plentiful rain across large parts of the country has encouraged farmers to bring more land under cultivation.
As of October 7, kharif sowing was completed across 1,022 lakh hectares, which was 64 lakh hectares more than the acreage reported in the corresponding period of 2009.
Cumulative rainfall for the season (June-September) is 102 percent of the long period average, according to the India Meteorological Department's end-of-season report.
Agricultural production is therefore expected to grow by a healthy 7.2 percent in 2010-11, after recording a 6.6 percent decline in the preceding fiscal, CMIE said.
Wednesday, October 13, 2010
FDI inflows down by about 60% in Aug
Reflecting fragile recovery in world's major economies, foreign direct investment into India dipped for the third consecutive month, by about 60 percent to USD 1.33 billion in August.
The FDI inflows in August 2009 were USD 3.26 billion.
Contrary to smart recovery in the domestic economy and a rebound in exports, overseas investment show a slackening trend in the current fiscal, an official said.
For the April-August period of 2010-11, FDI inflows declined by 35 percent to USD 8.92 billion compared to USD 13.8 billion in the same period last year, the official said.
According to experts, weak global economic recovery is one of the reasons for declining FDI in India.
"The main reason for the decline in FDI is slump in the major western economies like the US and Europe...," international trade expert with India's prestigious Indian Institute of Foreign Trade (IIFT) Rakesh Mohan Joshi said.
Crisil chief economist DK Joshi said: "This is not a good news for Indian economy. This reflects that global economic recovery is still fragile and some impact of that would be reflected in our FDI."
Foreign investment in July 2010 was at USD 1.78 billion, a dip of 49 percent and in June international inflows were at USD 1.38, a dip of 46 per cent over the year ago period.
The sectors which attracted foreign investment, included services, telecommunication, construction activities and computer software and hardware, the official said.
The country received maximum investment from countries like Mauritius, the US, the UK, Singapore, the Netherlands and Japan.
The government has recently floated discussion papers for public comments to liberalise FDI in multi-brand retail and defence sector.
The foreign investment remained low-key despite a recent UNCTAD survey showing that India would remain the second most important FDI destination for transnational corporations during 2010-2012, next only to China.
In its latest 'World Investment Prospects Survey 2010-2012', the United Nations Conference on Trade and Development (UNCTAD) said transnational corporations remain buoyant about investment prospects in China, India and Brazil.
FDI for 2009-10 at USD 25.88 billion was lower by 5 percent from USD 27.33 billion in the previous fiscal.
The FDI inflows in August 2009 were USD 3.26 billion.
Contrary to smart recovery in the domestic economy and a rebound in exports, overseas investment show a slackening trend in the current fiscal, an official said.
For the April-August period of 2010-11, FDI inflows declined by 35 percent to USD 8.92 billion compared to USD 13.8 billion in the same period last year, the official said.
According to experts, weak global economic recovery is one of the reasons for declining FDI in India.
"The main reason for the decline in FDI is slump in the major western economies like the US and Europe...," international trade expert with India's prestigious Indian Institute of Foreign Trade (IIFT) Rakesh Mohan Joshi said.
Crisil chief economist DK Joshi said: "This is not a good news for Indian economy. This reflects that global economic recovery is still fragile and some impact of that would be reflected in our FDI."
Foreign investment in July 2010 was at USD 1.78 billion, a dip of 49 percent and in June international inflows were at USD 1.38, a dip of 46 per cent over the year ago period.
The sectors which attracted foreign investment, included services, telecommunication, construction activities and computer software and hardware, the official said.
The country received maximum investment from countries like Mauritius, the US, the UK, Singapore, the Netherlands and Japan.
The government has recently floated discussion papers for public comments to liberalise FDI in multi-brand retail and defence sector.
The foreign investment remained low-key despite a recent UNCTAD survey showing that India would remain the second most important FDI destination for transnational corporations during 2010-2012, next only to China.
In its latest 'World Investment Prospects Survey 2010-2012', the United Nations Conference on Trade and Development (UNCTAD) said transnational corporations remain buoyant about investment prospects in China, India and Brazil.
FDI for 2009-10 at USD 25.88 billion was lower by 5 percent from USD 27.33 billion in the previous fiscal.
India's external debt rises to $273.1 billion
India's external debt rose 4.1 percent or USD 10.8 billion to USD 273.1 billion in the first quarter of current fiscal due to a sharp increase in short-term trade credits, commercial borrowings and multilateral government borrowings.
The short-term debt increased by USD 5.4 billion to USD 57.8 billion, accounting for 21.2 percent of the total debt, while the long-term debt rose to USD 215.2 billion at the quarter ended June 30, the Reserve Bank of India (RBI) said in its monthly bulletin.
Almost all the components of external debt registered increase during the first three months of fiscal 2010-11. Commercial borrowings and loans under external assistance (multilateral and bilateral debt) increased by USD 2.5 billion and USD 2.3 billion respectively.
The share of commercial borrowings continue to be the highest at 27.3 percent in the total external debt followed by short-term debt (21.2 percent), NRI deposits (17.6 percent) and multilateral debt (16.4 percent).
The valuation effect reflecting the appreciation of the US dollar against other major international currencies and the Indian rupee resulted in a decline of USD 1.3 billion in India's external debt during the reporting quarter.
"Excluding the valuation effects due to appreciation of US dollar against other major international currencies and the Indian rupee, the increase in external debt worked out to USD 12.1 billion over the quarter," the RBI said.
The short-term debt increased by USD 5.4 billion to USD 57.8 billion, accounting for 21.2 percent of the total debt, while the long-term debt rose to USD 215.2 billion at the quarter ended June 30, the Reserve Bank of India (RBI) said in its monthly bulletin.
Almost all the components of external debt registered increase during the first three months of fiscal 2010-11. Commercial borrowings and loans under external assistance (multilateral and bilateral debt) increased by USD 2.5 billion and USD 2.3 billion respectively.
The share of commercial borrowings continue to be the highest at 27.3 percent in the total external debt followed by short-term debt (21.2 percent), NRI deposits (17.6 percent) and multilateral debt (16.4 percent).
The valuation effect reflecting the appreciation of the US dollar against other major international currencies and the Indian rupee resulted in a decline of USD 1.3 billion in India's external debt during the reporting quarter.
"Excluding the valuation effects due to appreciation of US dollar against other major international currencies and the Indian rupee, the increase in external debt worked out to USD 12.1 billion over the quarter," the RBI said.
Tuesday, October 12, 2010
Upcoming results...
| October 13, 2010 | ||||
| ARROW TEX | Goldcrest Fin | Jindal Poly | Riddhi Siddhi | Tata Metaliks |
| Elpro Intl | Honeywell Auto | Marsons | Stone India | |
| October 14, 2010 | ||||
| Axis Bank | Geojit Bnp | Kernex Micro | Midas Pharma | UTV Software |
| Dynacons Sys | Gruh Finance | LIC Housing Fin | Rallis India | VST Inds |
| EUROFINMART | Infotech Enter | Mastek | Shirpur Gold | |
| October 15, 2010 | ||||
| Alpha Hitech | Dhanprayog | Jay Bharat Marut | Manappuram Gen | Sarthak Inds |
| Betala Global | Eskay Knit | Karnataka Bank | Nu Tek India | SURYAMBA SP |
| DB Intl Stock | Heidelbergcement | Krishna Life | Orbit Exports | Vardhman Poly |
| Dev Credit Bank | Infosys | Maharashtra Scoot | Polyspin Expo | Venus Remedies |
| October 16, 2010 | ||||
| Asahi Fibres | Jaybharat Tex | KSL Inds | Sudarshan Chem | |
| Associated Ston | Key Corp | Reliance Indl Infra | Suryalakshmi | |
| Godrej Prop | Kilpest India | Sanghi Corp | Unichem Lab |
IIP growth dips to 5.6% in Aug
Industrial output in August grew at the slowest pace in 15 months at 5.6 percent, nearly half of last year, disappointing the government that was betting on domestic consumption to drive the economy.
Manufacturing sector, which accounts for 80 percent of the factory ouput numbers and a key indicator of consumer demand, saw growth slip to 5.9 percent from 10.6 per cent in August, 2009.
"(The trend is) a little disappointing. Let us see how it fares in annualised terms," Finance Minister Pranab Mukherjee said in his comments on the sharp fall in industrial output growth.
Growth in capital goods -- used by the manufacturing segment -- was a negative 2.6 percent in August compared to a 9.2 expansion in the year-ago period.
The poor showing drew immediate calls from the industry against any further increase in key policy rates by the Reserve Bank, which is slated to review its monetary policy on November two.
The RBI has increased policy rates five times this year to cool inflation, following which the rate for its key short-term lending (repo) stands at 6 per cent and borrowing (reverse repo) at 5 percent.
India Inc believes the deceleration was owing to the tight monetary policy stance that has pushed up interest rates for corporates, as well as for retail customers, most of whom rely on loans or credit to buy auto or other consumer durables.
The disappointing industrial output numbers triggered a huge sale on the bourses, as investors booked profits, pulling down the benchmark Sensex by nearly 225 points in intra-day trade. The losses were curtailed to 137 points at close.
Mukherjee, though disappointed, asserted that the "Indian economy is on the path of robust growth led by increased investment and capital inflows, stronger industrial output and rising aggregate demand."
The Finance Minister expects annual industrial growth to be around 12-13 percent, which could push economic growth to 8.5 percent or more. After over 9 percent growth for three years till 2007-08, GDP expansion slipped to 6.7 percent in 2008-09 post the global financial crisis.
The last time factory output growth was slower was in May 2009 (2.7 percent).
Mining sector output decelerated to 7 percent from 11 percent, electricity generation to 1 per cent from 10.6 percent.
"...the RBI should not raise policy rates any further as it could have a negative impact on consumer demand as well as corporate investment and thereby slowdown economic growth," CII said in a statement.
Industry chamber Ficci too said any further hike in interest rates could impact consumer durables and automotive sector.
"Negative growth in key sectors like capital goods, apparels...is indeed a cause of concern and with appreciation in Rupee and hardening of interest rates, the growth of manufacturing sector may be significantly affected," Ficci secretary general Amit Mitra said.
The central bank will have to draw a balance between the need to check prices, as inflation is still high at 8.5 percent, and push up economic growth.
Commenting on the IIP numbers, RBI Governor D Subbarao said, "We will study (IIP numbers). I cannot make a comment (just yet)."
The only sector that showed a positive trend in August was consumer durables which improved to 26.5 percent from 24.7 percent in August last fiscal.
Further, July IIP was revised upwards to 15.2 percent from 13.8 percent in the provisional estimates.
Finance Secretary Ashok Chawla said, "It (the trend) is purely a cyclical movement. Sometimes it goes up, sometimes (it) goes down...We need to watch."
On decline in capital goods production, India's chief statistician TCA Anant said, "It is very difficult to predict a trend based on month-on-month number. Capital goods production always comes with a lag and is difficult to say that there is any slowdown.
Manufacturing growth is good on the broader trend. This kind of variation takes place."
Consumer non-durables, mainly fast moving consumer goods (FMCG), recorded a negative growth of 1.2 percent, as against expansion of 6.1 percent in the same month last year.
Of the 17 industry groups, as many as 14 have shown positive growth during the month of August.
Meanwhile, the industrial expansion figure for July was revised upwards to 15.2 percent from the earlier estimates of 13.8 percent.
Industrial growth for the first five months of this fiscal stood at 10.6 percent in comparison to 5.9 percent growth in the same period a year ago.
According to Standard Chartered Bank economist, Anubhuti Sahay, "GDP growth and industrial output for the fiscal would be in line with projection...going forward industrial output is expected to moderate due to high base effect."
Manufacturing sector, which accounts for 80 percent of the factory ouput numbers and a key indicator of consumer demand, saw growth slip to 5.9 percent from 10.6 per cent in August, 2009.
"(The trend is) a little disappointing. Let us see how it fares in annualised terms," Finance Minister Pranab Mukherjee said in his comments on the sharp fall in industrial output growth.
Growth in capital goods -- used by the manufacturing segment -- was a negative 2.6 percent in August compared to a 9.2 expansion in the year-ago period.
The poor showing drew immediate calls from the industry against any further increase in key policy rates by the Reserve Bank, which is slated to review its monetary policy on November two.
The RBI has increased policy rates five times this year to cool inflation, following which the rate for its key short-term lending (repo) stands at 6 per cent and borrowing (reverse repo) at 5 percent.
India Inc believes the deceleration was owing to the tight monetary policy stance that has pushed up interest rates for corporates, as well as for retail customers, most of whom rely on loans or credit to buy auto or other consumer durables.
The disappointing industrial output numbers triggered a huge sale on the bourses, as investors booked profits, pulling down the benchmark Sensex by nearly 225 points in intra-day trade. The losses were curtailed to 137 points at close.
Mukherjee, though disappointed, asserted that the "Indian economy is on the path of robust growth led by increased investment and capital inflows, stronger industrial output and rising aggregate demand."
The Finance Minister expects annual industrial growth to be around 12-13 percent, which could push economic growth to 8.5 percent or more. After over 9 percent growth for three years till 2007-08, GDP expansion slipped to 6.7 percent in 2008-09 post the global financial crisis.
The last time factory output growth was slower was in May 2009 (2.7 percent).
Mining sector output decelerated to 7 percent from 11 percent, electricity generation to 1 per cent from 10.6 percent.
"...the RBI should not raise policy rates any further as it could have a negative impact on consumer demand as well as corporate investment and thereby slowdown economic growth," CII said in a statement.
Industry chamber Ficci too said any further hike in interest rates could impact consumer durables and automotive sector.
"Negative growth in key sectors like capital goods, apparels...is indeed a cause of concern and with appreciation in Rupee and hardening of interest rates, the growth of manufacturing sector may be significantly affected," Ficci secretary general Amit Mitra said.
The central bank will have to draw a balance between the need to check prices, as inflation is still high at 8.5 percent, and push up economic growth.
Commenting on the IIP numbers, RBI Governor D Subbarao said, "We will study (IIP numbers). I cannot make a comment (just yet)."
The only sector that showed a positive trend in August was consumer durables which improved to 26.5 percent from 24.7 percent in August last fiscal.
Further, July IIP was revised upwards to 15.2 percent from 13.8 percent in the provisional estimates.
Finance Secretary Ashok Chawla said, "It (the trend) is purely a cyclical movement. Sometimes it goes up, sometimes (it) goes down...We need to watch."
On decline in capital goods production, India's chief statistician TCA Anant said, "It is very difficult to predict a trend based on month-on-month number. Capital goods production always comes with a lag and is difficult to say that there is any slowdown.
Manufacturing growth is good on the broader trend. This kind of variation takes place."
Consumer non-durables, mainly fast moving consumer goods (FMCG), recorded a negative growth of 1.2 percent, as against expansion of 6.1 percent in the same month last year.
Of the 17 industry groups, as many as 14 have shown positive growth during the month of August.
Meanwhile, the industrial expansion figure for July was revised upwards to 15.2 percent from the earlier estimates of 13.8 percent.
Industrial growth for the first five months of this fiscal stood at 10.6 percent in comparison to 5.9 percent growth in the same period a year ago.
According to Standard Chartered Bank economist, Anubhuti Sahay, "GDP growth and industrial output for the fiscal would be in line with projection...going forward industrial output is expected to moderate due to high base effect."
Coal India issue price band set at Rs 225-245
The price band for Coal India’s initial public offering (IPO) will be between Rs 225 and Rs 245 apiece, coal minister, Sriprakash Jaiswal said on Tuesday.The company will offer 5% discount to the issue price to its employees and retail investors.
The government will put on block 631.64 million shares, of which 63.16 million shares will be reserved for employees. At the higher end of the price band, the company will mop around Rs 15,500 crore, making it the largest ever IPO in the Indian capital market history. So far, the biggest IPO to hit the Indian capital market is Reliance Power, which raised Rs 11,563 crore in January 2008.
The IPO will be open between October 18 and October 21. It will close a day earlier for the qualified institutional buyers (QIBs).
At this price band, the issue price is at a discount to its global peers. The company price-to-earnings multiple based on its FY10 EPS works to 15.73 times at the upper end of the price band, while it is 17.65 for China Shenhua, and 31 for Peabody Energy, USA’s leading coal producer, based on its December 2009 earnings. On listing, Coal India could become the second most valuable coal producing company with a market capitalisation of $35 billion compared with $84.7 billion for China Shenhua, as per Bloomberg data.
The issue comprises 10% of the post-offer paid-up share capital of the company. About 50% of the issue will be allotted to QIBs on a proportionate basis, 15% to non-institutional bidders or high net worth individuals (HNIs) and the rest to retail individual bidders.
The government may allocate up to 30% of the QIB portion to anchor investors, of which at least a third will be reserved for domestic mutual funds. Citigroup, Deutsche Bank, Bank of America, Enam Securities, Kotak Mahindra and Morgan Stanley will manage the IPO. Three rating agency, Crisil, Icra and CARE, have assigned the highest grade of 5/5 to the IPO, indicating strong fundamentals.
Saturday, October 9, 2010
SAIL achieves best ever Q 2 sales
The July-September quarter of 2010 has been the best-ever Q2 for Steel Authority Of India with sales of 3.17 million tonnes (MT) achieved during the period, sources in Rourkela Steel Plant said Saturday.
In comparison to sales in Q1 SAIL achieved a growth of 30 percent. The previous best Q2 in respect of sales was 3.08 MT achieved in 2009-10, they said.
During this year's Q2 SAIL sold 8.5 lakh tonnes of special and value-added steel products, showing a growth of 10.1 percent over the corresponding period last year. Special steel constituted 30 percent of the total domestic sales achieved in Q2.
Sales growth in Q2 was mainly due to higher intake by construction and manufacturing sectors. This was reflected in higher sales of products such as wife rods, rounds and bars, structurals, CR sheets/coils and galvanised items, the sources added.
Wednesday, October 6, 2010
Career Point Infosystems, debutes 104% up
Tutorial services provider Career Point Infosystems which listed today has registered a massive gain of 104%, or Rs 322.35 to close at Rs 632.35 on the BSE. It listed at Rs 461.10 as against issue price of Rs 310. The company raised Rs 115 crore through the issue, which opened for subscription during September 16-21, 2010. It was subscribed 47.39 times. Career Point's market capitalisation stands at Rs 1,146.64 crore.The company intends to use issue proceeds for construction and development of an integrated campus facility; expansion of classroom infrastructure and office facility; acquisitions and other strategic initiatives; and to meet expenses towards general corporate purposes.
In an exclusive interview Pramod Maheshwari, CMD and CEO of Career Point today said that the company will continue to grow at its historical run-rate of 25% year-on-year. He said in terms of the revenues, the company would end the current fiscal with Rs 80-85 crore. He is also hopeful that the company would post Rs 25 crore in profits for the fiscal. He added that Career Point would be adding facilities for about 2,000 students as part of its capacity expansion plans in FY12.
IMF projects India's economic growth at 9.7% in 2010
The International Monetary Fund has projected the Indian economy will grow by 9.7 percent in 2010 and 8.4 percent in the next fiscal, driven by robust industrial production and macro-economic performance.
However, neighbouring China is expected to grow at an even faster rate of 10.5 percent in 2010 and 9.6 percent in 2011, driven by domestic demand, the IMF said in its latest World Economic Outlook report.
Advanced economies, on the other hand, are projected to grow by just 2.7 percent in 2010 and 2.2 percent in 2011, the IMF report said, adding that global trade is forecast to expand by 4.8 percent in 2010 and 4.2 percent in 2011, with a temporary slowdown during the second half of 2010 and the first half of 2011.
"India's macroeconomic performance has been vigorous, with industrial production at a two-year high. Leading indicators -- the production manufacturing index and measures of business and consumer confidence -- continue to point up," the IMF said.
"Growth is projected at 9.7 percent in 2010 and 8.4 percent in 2011, led increasingly by domestic demand. Robust corporate profits and favorable external financing will encourage investment," it said.
"Recent activity (10 percent year-over year growth in real GDP at market prices in the second quarter) was driven largely by investment and the contribution from net exports is projected to turn negative in 2011 as the strength in investment further boosts imports," the IMF said.
According to the World Economic Outlook report, growth in emerging Asia economies stands at about 9.5 percent, with robust demand from China, India, and Indonesia benefiting other Asian economies.
In China, a major fiscal stimulus, a large expansion of credit and a number of specific measures to boost household income and consumption increased domestic demand growth to almost 13 percent in 2009, contributing to a large decline in the current account surplus.
The recovery is now well established, and a transition from public stimulus to private-sector-led growth is underway, it said.
Latin America has also recovered strongly, with real GDP growth at about 7 percent.
The recovery in Latin America is being led by Brazil, where real GDP growth has been close to 10 percent since the third quarter of 2009 and the economy is now showing signs of overheating, the report said.
A number of other economies have also returned to solid growth. However, Mexico is lagging behind, partly because of its strong trade linkages with the United States.
Growth in Mexico recently picked up on the back of strengthening exports to the United States, but the output gap remains large.
The World Economic Outlook projects that the output of emerging and developing economies will expand at a rate of 7.1 percent and 6.4 percent, respectively, in 2010 and 2011.
"The global recovery remains fragile, because strong policies to foster internal rebalancing of demand from public to private sources and external rebalancing from deficit to surplus economies are not yet in place," it said.
However, neighbouring China is expected to grow at an even faster rate of 10.5 percent in 2010 and 9.6 percent in 2011, driven by domestic demand, the IMF said in its latest World Economic Outlook report.
Advanced economies, on the other hand, are projected to grow by just 2.7 percent in 2010 and 2.2 percent in 2011, the IMF report said, adding that global trade is forecast to expand by 4.8 percent in 2010 and 4.2 percent in 2011, with a temporary slowdown during the second half of 2010 and the first half of 2011.
"India's macroeconomic performance has been vigorous, with industrial production at a two-year high. Leading indicators -- the production manufacturing index and measures of business and consumer confidence -- continue to point up," the IMF said.
"Growth is projected at 9.7 percent in 2010 and 8.4 percent in 2011, led increasingly by domestic demand. Robust corporate profits and favorable external financing will encourage investment," it said.
"Recent activity (10 percent year-over year growth in real GDP at market prices in the second quarter) was driven largely by investment and the contribution from net exports is projected to turn negative in 2011 as the strength in investment further boosts imports," the IMF said.
According to the World Economic Outlook report, growth in emerging Asia economies stands at about 9.5 percent, with robust demand from China, India, and Indonesia benefiting other Asian economies.
In China, a major fiscal stimulus, a large expansion of credit and a number of specific measures to boost household income and consumption increased domestic demand growth to almost 13 percent in 2009, contributing to a large decline in the current account surplus.
The recovery is now well established, and a transition from public stimulus to private-sector-led growth is underway, it said.
Latin America has also recovered strongly, with real GDP growth at about 7 percent.
The recovery in Latin America is being led by Brazil, where real GDP growth has been close to 10 percent since the third quarter of 2009 and the economy is now showing signs of overheating, the report said.
A number of other economies have also returned to solid growth. However, Mexico is lagging behind, partly because of its strong trade linkages with the United States.
Growth in Mexico recently picked up on the back of strengthening exports to the United States, but the output gap remains large.
The World Economic Outlook projects that the output of emerging and developing economies will expand at a rate of 7.1 percent and 6.4 percent, respectively, in 2010 and 2011.
"The global recovery remains fragile, because strong policies to foster internal rebalancing of demand from public to private sources and external rebalancing from deficit to surplus economies are not yet in place," it said.
Tuesday, October 5, 2010
See Nifty hitting 6300-6400 soon- KR Choksey
Barring few wrinkles, the bourses have been steadily moving up and Deven Choksey of KR Choksey Securities feels that it is definitely planning for a new high and that is where he sees larger amount of actions coming into the some of the frontline stocks. “We will soon touch 6,300-6,400 very soon. The market has the appetite for buying some of the heavyweight stocks. You should be seeing more actions there.”
Midcap stocks too may lead participation. “Probably between 6,300-6,400 you would have majority of the upside completed in some of the index heavy constitutes and thereafter you should probably seeing those funds which are sitting on sidelines starting to pick up in some of the midcap stocks”
Midcap stocks too may lead participation. “Probably between 6,300-6,400 you would have majority of the upside completed in some of the index heavy constitutes and thereafter you should probably seeing those funds which are sitting on sidelines starting to pick up in some of the midcap stocks”
Join the rally...
One of the TV Channel spoke to Radhika Gupta, Director, Forefront Capital Management for her fundamental view and Hemen Kapadia of chartpundit.com for his technical view on various stocks and sectors.
Here are the expert views on various stocks/sector:
On Sesa Goa
Gupta is positive on the stock. “We are bullish on Sesa Goa and I think it’s a sector and a stock to be invested in for the long term if the investor has that kind of horizon. We are very bullish on the commodity space and on the metal space within that so we read that as a positive development and within that space Sesa Goa has consistently been in a favorable position so bullish on the stock overall.”
Kapadia is in sync with Gupta on this one. He says, “The stock looks good. We had a protracted decline. We are out of that, it’s stabilized and now it’s looking good. I would have a buy on the stock. It looks good from a medium to longer-term point of view.”
On Bharti Airtel
Gupta says if you have a longer-term horizon on telecom and Bharti then it’s not such a bad space to be in. She says, “We were fairly bearish on telecom but now we have become a little more neutral on the sector and Bharti is the best bet within the telecom sector. It has the highest growing market share, a good outlook ahead with the Zain deal that they have strong operations, but you need to have a longer term outlook in Bharti, maybe a year or two years to really reap the benefits. In the shorter-term we would be little bearish or neutral.” She also adds that she doesn’t see a major recovery coming back into the sector or into Bharti in the three-six months horizon. She says if the investor is looking at a shorter-term, he should probably exit and deploy that investment into more attractive sectors so like power, auto’s or pharma, something where he will see a shorter term gain.
Kapadia agrees with Radhika’s viewpoint. He says, “It’s going to take a long time. We have moved from Rs 260 to Rs 380 almost. I have a hold on the stock because it’s a technical weakness but it is getting heavy. The upside is getting tightly capped so six months I am not sure. Stock doesn’t look bad but the cream has been lost. We could be just walking into a correction, not yet but we are probably on the anvil of walking into a correction and that could take a few months or so.” He says to hold the stock and needs to extend his time horizon from six months to about two years or more.
On auto space:
Gupta says, “I think that perspective on Maruti is that while auto is growing sector, Maruti has seen fair amount of strong volume growth. If the investor has to be in the auto sector there are other individual names within autos where he is likely to see better growth in the prices because Maruti while the topline has been good because of the royalty payments, the bottomline has been hit and is likely to continue being hit. So, something like a Tata Motors or even a Mahindra and Mahindra in the similar space are probably more attractive investments.
On Maruti Suzuki:
Kapadia says, “I think the auto sector looks good, but I think most of the stocks have had run ups, no exceptions there. But I think Maruti will be a hold. I am not sure of the investor’s idea of selling now and buying back later can be practically implemented. Sounds good, but sometimes you could miss out on stocks in markets like these. So, yes, Maruti have moved up for seven weeks in a row. Its ripe for a correction, its overdue, it’s likely overbought. But since the investor has got a longer term investment outlook, I think it we will have a hold on Maruti. Maruti is in a longer term uptrend and we have just finished a 14 month-12 month correction so to speak and we will be back on track again. So, longer term point of view I would have a hold. Shorter to medium-term yes Maruti is probably susceptible to a correction.”
On Tata Steel
Gupta is bullish on the metal space. She adds, “We like the metals and within that the steel space as a whole. Tata Steel is actually one of the strongest plays within that space. Given the companies focus on cleaning up its balance sheet, managing debt, the news that we have seen coming out of Corus, management’s ability to execute over the last couple of years, in general Tata Steel is on very strong footing within this space.”
Kapadia finds Tata Steel a good bet in the long-term. He says, “We are back with a longer-term uptrend but currently the stock has moved from Rs 490 to Rs 680 in eight weeks or so and it’s also overbought. Maybe there is still some more upside till Rs 700 but if I were to buy for the slightly longer-term I will wait till it comes down to Rs 640 or below. I would avoid buying it at current levels because it’s had a run-up, so we could be walking into a correction which is probably overdue for the market as well as for Tata Steel.”
On Kalyani Steel
Kapadia finds Kalyani Steel an interesting stock. The company underwent some restructuring, so the charts have been slightly twisted but currently they are in the last stages of what is possibly an eight-nine week intermediate correction. He says, “Very strong support comes in at around Rs 130, I think downside appears limited, it seems to be setting the stage for an up move. Once this correction gets over, this could end in the next week or two, if not the next couple of weeks. That would set the stage for resumption of its intermediate uptrend and frankly speaking I would stick my neck out and say we are setting a stage for a 20-25% move in the next three months or so.”
On IT sector
According to Gupta this is probably a good time to exit most of the IT names. “We are pretty bearish on software as a pack. Couple of reasons, 1) rupee fluctuation will hurt them; 2) rising employee cost have been a problem for most of these software names and 3) then most of them are trading at fairly rich valuations. So the kind of earnings they need to show to justify the valuations are something that we think is unlikely to come in the next round of earnings. So they are looking overvalued and seeing margin pressures so weak thing for software and Infosys within that is one of the weaker and more overvalued players,” she feels.
However, Kapdia feels there is some upside left for the IT pack. “If you look at the entire IT lot—I think the Wipro, HCL Technologies—have posted 10 year highs. Infosys is at a all time high—short-term, medium term, long term all time frames and all counts it is in an uptrend.
On Infosys, he suggests a hold. “There I some more upside to go before the move fizzles out and the entire IT pack, even a laggard like Tech Mahindra probably looks good enough for a bounce right now so I have a hold on Infosys, I think there is more upside. Probably a Wipro or a HCL Tech might do slightly better than Infosys but Infosys is still a hold.,” he says.
Commenting on other IT counters, Kapadia says, the prospects of the Patni aren’t that exciting right now. However, he is upbeat on Hexaware. “We have had a 10-12 month correction. The time retracement has been there but price retracement has been rather shallow. Simply put, it is looking good and its coiling up like a though the breakout comes in at Rs 90. Hexaware looks exciting enough to warrant a close look and may be even a buy. So Patni doesn’t look too exciting, Hexaware does. In terms of Foursoft—that’s also moving sideways for once again this 12-14 month point of view. Looks okay but out of the three stocks—Hexaware looks to be the best of the lot. I think one can expect 30% upside from here in the next six to nine months,” he adds.
On Reliance
Kapadia says Reliance has been a bad underperformer but to expect Reliance not to perform would be a folly. He adds, “I have been tracking Reliance since my school days. Yes, it hasn’t moved but I think it has the capacity to surprise very much on the upside. I am not sure that an investor should sell call options of Reliance after 17 months of a sideways momentum and if he does he will have to keep a very strict stop loss. If the investor does sell call options he will have to calculate his cost in a sense call option plus the premium gain and if that and the spot price and the futures price crosses that, he will have to hedge it by going long in futures. It’s highly complicated, and slightly dangerous. In fact if Reliance dips a bit I would suggest selling put options because I am bullish on Reliance and not bearish. But frankly speaking just to make up for the losses selling calls and puts are very dangerous. I think you would loose two years of money that you have made in futures and options when you take such dangerous strategy especially in the market open with a gap sometimes. I would suggest a hold on Reliance. I think by the time the bull market comes to an end Reliance should be Rs 1,300 or more.”
On Reliance Capital
Gupta finds the financial space well placed. She finds that Reliance Capital hasn't done much. “Fundamentally it's not a bad business. It is the largest asset management company (AMC) in India. One of the few that's profitable although the insurance side has suffered a loss. I think there are other players in this space like an IFCI or an LIC Housing Finance that have done a lot more and have a much sharper growth trajectory ahead of them. So I would advice the investor to look at that a little bit.”
Kapadia has a buy call on this stock despite the fact that the entire bull market of the last year or so has given Reliance Capital a complete miss. He adds, “Currently we are in the midst of what is possibly a rounding bottom on the week. Maybe it looks like an inverted head and shoulder. Simply put, there is a bullish formation at play. Maybe it takes some more time and at the risk of sounding silly maybe the bull market gets over by the time Reliance Capital moves. Technically speaking it looks great. We haven't had a deep price retracement so despite its deep underperformance I have a buy on the stock especially if you have a year or two investment horizon.”
On Banks
Kapadia doesn’t track the financial sector but agrees it looks good. “All time highs but no resistance levels so I would have a hold. I think we could be moving towards maybe Rs 450 or so in the next couple of months.”
“Bank of Maharashtra looks relatively better in the sense we have some more history in terms of an upside. There is headroom. There is resistance at Rs 74. If you take that out from a weekly point of view I think we could be moving towards Rs 85 or so. Like most banks it’s in an uptrend, looks good and I think one can expect further upsides. I also find Dhanlaxmi Bank looks good.”
Here are the expert views on various stocks/sector:
On Sesa Goa
Gupta is positive on the stock. “We are bullish on Sesa Goa and I think it’s a sector and a stock to be invested in for the long term if the investor has that kind of horizon. We are very bullish on the commodity space and on the metal space within that so we read that as a positive development and within that space Sesa Goa has consistently been in a favorable position so bullish on the stock overall.”
Kapadia is in sync with Gupta on this one. He says, “The stock looks good. We had a protracted decline. We are out of that, it’s stabilized and now it’s looking good. I would have a buy on the stock. It looks good from a medium to longer-term point of view.”
On Bharti Airtel
Gupta says if you have a longer-term horizon on telecom and Bharti then it’s not such a bad space to be in. She says, “We were fairly bearish on telecom but now we have become a little more neutral on the sector and Bharti is the best bet within the telecom sector. It has the highest growing market share, a good outlook ahead with the Zain deal that they have strong operations, but you need to have a longer term outlook in Bharti, maybe a year or two years to really reap the benefits. In the shorter-term we would be little bearish or neutral.” She also adds that she doesn’t see a major recovery coming back into the sector or into Bharti in the three-six months horizon. She says if the investor is looking at a shorter-term, he should probably exit and deploy that investment into more attractive sectors so like power, auto’s or pharma, something where he will see a shorter term gain.
Kapadia agrees with Radhika’s viewpoint. He says, “It’s going to take a long time. We have moved from Rs 260 to Rs 380 almost. I have a hold on the stock because it’s a technical weakness but it is getting heavy. The upside is getting tightly capped so six months I am not sure. Stock doesn’t look bad but the cream has been lost. We could be just walking into a correction, not yet but we are probably on the anvil of walking into a correction and that could take a few months or so.” He says to hold the stock and needs to extend his time horizon from six months to about two years or more.
On auto space:
Gupta says, “I think that perspective on Maruti is that while auto is growing sector, Maruti has seen fair amount of strong volume growth. If the investor has to be in the auto sector there are other individual names within autos where he is likely to see better growth in the prices because Maruti while the topline has been good because of the royalty payments, the bottomline has been hit and is likely to continue being hit. So, something like a Tata Motors or even a Mahindra and Mahindra in the similar space are probably more attractive investments.
On Maruti Suzuki:
Kapadia says, “I think the auto sector looks good, but I think most of the stocks have had run ups, no exceptions there. But I think Maruti will be a hold. I am not sure of the investor’s idea of selling now and buying back later can be practically implemented. Sounds good, but sometimes you could miss out on stocks in markets like these. So, yes, Maruti have moved up for seven weeks in a row. Its ripe for a correction, its overdue, it’s likely overbought. But since the investor has got a longer term investment outlook, I think it we will have a hold on Maruti. Maruti is in a longer term uptrend and we have just finished a 14 month-12 month correction so to speak and we will be back on track again. So, longer term point of view I would have a hold. Shorter to medium-term yes Maruti is probably susceptible to a correction.”
On Tata Steel
Gupta is bullish on the metal space. She adds, “We like the metals and within that the steel space as a whole. Tata Steel is actually one of the strongest plays within that space. Given the companies focus on cleaning up its balance sheet, managing debt, the news that we have seen coming out of Corus, management’s ability to execute over the last couple of years, in general Tata Steel is on very strong footing within this space.”
Kapadia finds Tata Steel a good bet in the long-term. He says, “We are back with a longer-term uptrend but currently the stock has moved from Rs 490 to Rs 680 in eight weeks or so and it’s also overbought. Maybe there is still some more upside till Rs 700 but if I were to buy for the slightly longer-term I will wait till it comes down to Rs 640 or below. I would avoid buying it at current levels because it’s had a run-up, so we could be walking into a correction which is probably overdue for the market as well as for Tata Steel.”
On Kalyani Steel
Kapadia finds Kalyani Steel an interesting stock. The company underwent some restructuring, so the charts have been slightly twisted but currently they are in the last stages of what is possibly an eight-nine week intermediate correction. He says, “Very strong support comes in at around Rs 130, I think downside appears limited, it seems to be setting the stage for an up move. Once this correction gets over, this could end in the next week or two, if not the next couple of weeks. That would set the stage for resumption of its intermediate uptrend and frankly speaking I would stick my neck out and say we are setting a stage for a 20-25% move in the next three months or so.”
On IT sector
According to Gupta this is probably a good time to exit most of the IT names. “We are pretty bearish on software as a pack. Couple of reasons, 1) rupee fluctuation will hurt them; 2) rising employee cost have been a problem for most of these software names and 3) then most of them are trading at fairly rich valuations. So the kind of earnings they need to show to justify the valuations are something that we think is unlikely to come in the next round of earnings. So they are looking overvalued and seeing margin pressures so weak thing for software and Infosys within that is one of the weaker and more overvalued players,” she feels.
However, Kapdia feels there is some upside left for the IT pack. “If you look at the entire IT lot—I think the Wipro, HCL Technologies—have posted 10 year highs. Infosys is at a all time high—short-term, medium term, long term all time frames and all counts it is in an uptrend.
On Infosys, he suggests a hold. “There I some more upside to go before the move fizzles out and the entire IT pack, even a laggard like Tech Mahindra probably looks good enough for a bounce right now so I have a hold on Infosys, I think there is more upside. Probably a Wipro or a HCL Tech might do slightly better than Infosys but Infosys is still a hold.,” he says.
Commenting on other IT counters, Kapadia says, the prospects of the Patni aren’t that exciting right now. However, he is upbeat on Hexaware. “We have had a 10-12 month correction. The time retracement has been there but price retracement has been rather shallow. Simply put, it is looking good and its coiling up like a though the breakout comes in at Rs 90. Hexaware looks exciting enough to warrant a close look and may be even a buy. So Patni doesn’t look too exciting, Hexaware does. In terms of Foursoft—that’s also moving sideways for once again this 12-14 month point of view. Looks okay but out of the three stocks—Hexaware looks to be the best of the lot. I think one can expect 30% upside from here in the next six to nine months,” he adds.
On Reliance
Kapadia says Reliance has been a bad underperformer but to expect Reliance not to perform would be a folly. He adds, “I have been tracking Reliance since my school days. Yes, it hasn’t moved but I think it has the capacity to surprise very much on the upside. I am not sure that an investor should sell call options of Reliance after 17 months of a sideways momentum and if he does he will have to keep a very strict stop loss. If the investor does sell call options he will have to calculate his cost in a sense call option plus the premium gain and if that and the spot price and the futures price crosses that, he will have to hedge it by going long in futures. It’s highly complicated, and slightly dangerous. In fact if Reliance dips a bit I would suggest selling put options because I am bullish on Reliance and not bearish. But frankly speaking just to make up for the losses selling calls and puts are very dangerous. I think you would loose two years of money that you have made in futures and options when you take such dangerous strategy especially in the market open with a gap sometimes. I would suggest a hold on Reliance. I think by the time the bull market comes to an end Reliance should be Rs 1,300 or more.”
On Reliance Capital
Gupta finds the financial space well placed. She finds that Reliance Capital hasn't done much. “Fundamentally it's not a bad business. It is the largest asset management company (AMC) in India. One of the few that's profitable although the insurance side has suffered a loss. I think there are other players in this space like an IFCI or an LIC Housing Finance that have done a lot more and have a much sharper growth trajectory ahead of them. So I would advice the investor to look at that a little bit.”
Kapadia has a buy call on this stock despite the fact that the entire bull market of the last year or so has given Reliance Capital a complete miss. He adds, “Currently we are in the midst of what is possibly a rounding bottom on the week. Maybe it looks like an inverted head and shoulder. Simply put, there is a bullish formation at play. Maybe it takes some more time and at the risk of sounding silly maybe the bull market gets over by the time Reliance Capital moves. Technically speaking it looks great. We haven't had a deep price retracement so despite its deep underperformance I have a buy on the stock especially if you have a year or two investment horizon.”
On Banks
Kapadia doesn’t track the financial sector but agrees it looks good. “All time highs but no resistance levels so I would have a hold. I think we could be moving towards maybe Rs 450 or so in the next couple of months.”
“Bank of Maharashtra looks relatively better in the sense we have some more history in terms of an upside. There is headroom. There is resistance at Rs 74. If you take that out from a weekly point of view I think we could be moving towards Rs 85 or so. Like most banks it’s in an uptrend, looks good and I think one can expect further upsides. I also find Dhanlaxmi Bank looks good.”
Sunday, October 3, 2010
Buy GVK Power & Infrastructure, short term
Buy GVK Power & Infrastructure BSE Code- 532708 @ 47 with the target of 59 (short to medium term)-
Stock is also in Futures and Options
One can buy in Options Call of Strike Rate 50 for the month of Oct2010
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