30 September 2014

PHOENIX TOWNSHIP OFS: Oversubscribe 2.0359x at 2:05 PM; Indicative Price (Rs.) - retail 8.95; HNI: 17.13

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PHOENIX TOWNSHIP LTD
BSE Bid Details - Non RetailBSE Bid Details - Retail
Security TypeOFS
SymbolPHOENIXTN
Offer Date30 Sep 2014
StartTime09:15
EndTime15:30
Total Offer Size – No. of Shares369600
Offer Size for Retail Investors36960
Offer Size for Non Retail Investors332640
Face Value10.00
Floor Price
Seller has chosen to not to publicily disclose the floor price and the same shall be given in a sealed envelope to BSE Ltd. The envelope would be opened in presence pf the Sellers representative on the day of OFS issue after market hours and the floor price suitably disseminated to the market
Lot Size1
Tick Price0.05
ISIN NoINE977M01024
Minimum Bid Quantity1
Maximum Bid Quantity3,69,600
Allocation MethodologyPrice Priority
CUMULATIVE BID QUANTITY
( AS ON Sep 30 2014 2:05PM )
Total Cummulative Bidded QtySubscription% of Total
Total7,52,460203.59%
100% Margin7,52,460203.59%
0% Margin0.00%
Non Retail PortionSubscription% of Total
Total6,34,810171.76%
100% Margin6,34,810171.76%
0% Margin0.00%
Retail PortionSubscription% of Total
Total1,17,65031.83%
Non Retail Section
Indicative Price (Rs.)17.13
Retail Section
Indicative Price (Rs.)8.95
LTP23.95


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MOMAI IPO Subscriptio at 13-00 Hrs 30 Sep; HNI 1.25x.RETAIL 1.16x. TOTAL 1.21x

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MOMAI IPO Subscriptio at 13-00 Hrs 30 Sep;
HNI 1.25x.
RETAIL 1.16x.
TOTAL 1.21x



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Muthoot Fincorp/Manappuram Finance/SREI Infrastructure Finance - Collection Figures as on September 29, 2014 at 5.00 P.M

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Inflation hawk RBI: Repo rate remains at 8%, CRR stays at 4% :: Mint

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The Reserve Bank of India (RBI) on Tuesday kept the key policy rate unchanged, in line with expectations, citing risks of latent inflation.
The repo rate, or the rate at at which the central bank infuses liquidity into the banking system, remains at 8% and the cash reserve ratio (CRR), or the portion of deposits that banks must maintain with the central bank in cash, stays at 4%.
The last time RBI had touched the policy rate was on 28 January, when it increased the repo rate from 7.75% to 8%.
RBI also kept banks’ mandatory bond holding ratio unchanged at 22%.
The yields on the 10-year bond rose to 8.48% from its opening level of 8.49%. Just before the policy, the bond yield was at 8.471%. Rupee rose to 61.68 per dollar from its pre-policy level of 61.67. The rupee opened at 61.61 per dollar on Tuesday.
“With international crude prices softening and relative stability in the foreign exchange market, some upside risks to inflation are receding. Yet, there are risks from food price shocks as the full effects of the monsoon’s passage unfold, and from geo-political developments that could materialize rapidly,” RBI said in its policy statement.
The policy is in line with what RBI had communicated to the market on several occasions earlier, including in the policy review on 5 August.
The central bank had then indicated that it will keep its policy rates tight, even as inflation showed signs of some moderation, raising expectations that rates can be cut. RBI governor Raghuram Rajan made it clear in the post-policy interaction with the media that the central bank will tinker with the interest rates only when signs of sustainable low inflation were visible for the medium to long term.
The central bank’s immediate target is containing the consumer price index (CPI) inflation at 8% by January 2015, which looks achievable.
However, the next target is bringing the inflation to 6% by January 2016, which could be challenging, and analysts say Rajan’s eyes are firmly set on that target.
A rate cut at this point again risks stoking inflation. Rajan, who had said earlier that the central bank doesn’t want to keep fighting inflation every two years, called for breaking the back of inflation, on 25 September, few days before Tuesday’s monetary policy review.
The CPI inflation reading for August came at 7.8%, lower than July’s 7.96% but higher than June’s 7.46%. India’s gross domestic product (GDP) grew 5.7% in the quarter ended June, the fastest pace in two-and-a-half years and up from the March quarter level of 4.6%.


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BUY Pidilite :: ICICI Securities, pdf link

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Regular price hike to offset cost pressure…
• Pidilite recorded revenue CAGR of 18% during FY10-14 driven by the
consumer & bazaar segment, which recorded 19% CAGR. We believe
Pidilite will record sales CAGR of 19% in FY14-17E, supported by a
revival in industrial product segment. The EBITDA margin declined
~50 bps YoY in FY14 (~250 bps YoY in Q1FY15) due to adverse
VAM price movement on demand-supply mismatch and lag impact
of currency depreciation. We believe subsequent price hikes would
help in easing margin pressure, going forward, while EBITDA margin
will improve 50 bps in FY14-17E
• Pidilite has acquired the adhesive business of Blue Coat Pvt Ltd on a
slump sale basis for a cash consideration of | 263.6 crore.
Acquisition of Blue Coat would help the company to provide
synergies in the industrial product business
Market leader in adhesive segment
Pidilite Industries (Pidilite) is a dominant play in India’s growing adhesive
and industrial chemical market with a market share of ~70% in its leading
brand categories in the organised segment. The company’s two major
segments, consumer & bazaar (C&B) and speciality industrial chemical
have grown at a CAGR of ~20% and ~15% (standalone), respectively, in
FY10-14. The consumer & bazaar segment contributes ~79% of Pidilite’s
standalone revenue. This segment has grown mainly driven by the
adhesive and sealants segments, which contributes ~50% to the
company’s consumer & bazaar segment revenue (FY14). We believe since
the segment growth is largely driven by construction, repair and
maintenance, sales growth in the consumer and bazaar will be at 18.5%
CAGR in FY14-17E on the back of an increase in penetration in smaller
towns (population below 50,000).
Revival in industrial activities to drive industrial chemical demand
The specialty industrial segment contributes ~21% of Pidilite’s
standalone revenue. This segment has grown at 20% CAGR during FY10-
14 mainly driven by growth in demand from packaging, cigarettes,
stickers, labelling, footwear, etc. The specialty industrial segment has
three major sub-segments: industrial adhesive, industrial resins and
organic pigments & preparations. We have modelled industrial segment
revenues will grow at a CAGR of ~19% for FY14-17E led by strong
growth in industrial adhesives & resins.
Strong brand: More of consumer pull model
Pidilite Industries is one of the well known adhesive companies in India
for the quality and reach to end users. Fevicol, the legacy brand of the
company, is a generic name in the adhesive category in India. In spite of
the strong brand, the company has kept its marketing and selling
expenses at ~4% of sales to gain market share.
Upgrade to BUY: call on strong fundamentals with economic revival
We roll over our valuation on FY17E considering the revival in the Indian
economy on cards and Pidilite being a strong brand in the adhesive
segment is well positioned to capitalise the growth momentum. We
believe efficient deployment of cash for inorganic growth would be an
added advantage. We estimate revenues, earnings CAGR of ~19%, 20%,
respectively, in FY14-17E on the back of demand from tier II, –tier III cities.
We believe a recovery in margin coupled with strong return ratios would
justify the company’s re-rating possibilities. We upgrade our rating to
BUY with a revised target price to | 462/share valuing at 30x FY17E.



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Leader in cooling products.. Voltas :: ICICI Securities, pdf link

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Leader in cooling products..
Voltas is a leading air conditioning company in India and operating mainly
into the three business segments namely Electro Mechanical Projects and
services (EMPS, contributes ~52% in FY14 topline), Engineering Products
& Services (EPS, contributes ~9% in FY14 topline) and Unitary Cooling
Products for comfort & commercial use (UCP, contributes ~39% in FY14
topline). Voltas has migrated from initial HVAC (Heat, Ventilation and air
conditioning) projects to wide scope of services called MEP projects
(includes both domestic and international). MEP projects are
encompassing Mechanical, Electrical and Public health of which HVAC is
a sub category of Mechanical. Under EPS segment, it provides mining &
construction equipments (M&CE) and textiles machineries to the
respective industries. The products offered under M&CE are Shovels,
dumpers, loaders, crushers & screening plants, and textiles machines
includes spinning, knitting and weaving machines respectively. Voltas is
India’s largest room air conditioner manufacturers with market share over
20% in FY14 with over 9000 touch points in India.



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GSK Consumer- Leader in health food drinks market… :: ICICI Securities, pdf link

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Leader in health food drinks market…
We met the management of GSK Consumer Healthcare (GSKCH) to
understand the current business environment, future growth
opportunities and its strategy to overcome the current challenge of
slowing growth in its base business. GSKCH is the largest company in the
malt based beverage market with brands like Horlicks, Boost, Maltova and
Viva. The company is the market leader in health food drinks (HFD) and
has a value market share of 57.5% and volume market share of 65.1%
(June 2014). GSKCH generates 94% of revenues from malt/cereal based
beverages and 6% from foods. The company generated | 168.1 crore
from auxiliary service income (commission for Crocin, Iodex, Eno &
Sensodyne), which contributes 4-5% to its PBT. In 2009-10, the company
entered the foods business with the introduction of premium, high
margin biscuits & cookies market, instant noodles and snack bars. GSKCH
spends ~16% of its sales on advertisement and promotion expenses, of
which ~30% is used for promotion and ~70% for advertisement. The
company witnessed 20.4% CAGR sales growth in CY08-FY14 (FY14
numbers adjusted for 12 months) with 24.6% CAGR in EBITDA in the
same period.
Dominant play in HFD
With brands like Horlicks, Boost, Viva & Maltova, GSKCH dominates the
HFD market. These brands together command ~65% market share in
volume terms. Though volume growth of base brand Horlicks (white HFD)
saw a significant slowdown, growth in new variants like Junior Horlicks,
Women’s Horlicks, Mother’s Horlicks and Horlicks lite are helping GSKCH
gain market share in MFD business. In brown HFD, Boost (that commands
13-15% market share) is facing stiff competition from Complan and
Cadbury’s Bournvita. Though the foods business contributes 5% to
revenues, it has been growing at more than 20% in last 10 quarters.
Increasing penetration, premiumisation to drive growth
With low penetration (~25%) of HFD in India, there is immense
opportunity to grow the market by penetrating into semi-urban and rural
areas. The company derives 26% of its revenues from rural and 74% from
urban India. With direct reach of 8 lakh retailers and indirect reach of 2.5
million retailers, it has an effective distribution network. It plans to
increase its direct reach to 8.5 lakh retailers and indirect reach of 3 million
retailers by the end of 2015. Similarly, it is taking an initiative towards
increasing its rural reach to 22000 villages by the end of 2014 and 40000
by the end of 2016 from the current 10000. Though initiatives towards
premium products have not been a success, the introduction of sachets
has helped the company to penetrate rural areas.




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