Apollo Tyres Ltd. Margins yet to bottom out, HOLD:: Emkay

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Apollo Tyres Ltd.

Margins yet to bottom out, Lower rating to HOLD

HOLD

CMP: Rs70                                        Target Price: Rs70

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n     Q2 cons. performance below est. Standalone results in line due to inventory increase (12.5% of sales), Europe disappoints on (sales and margins), South Africa reports loss due to strike

n     Impact of rubber prices (~Rs 200/kg) to have impact on performance in 2H. Price hike eminent across regions. Assumed sequential price increase 5% in 2H

n     Demand structurally strong, expect price hikes in India. Concerned with pricing action in Europe. Expect stock to underperform in the short term

n     Lower our FY11/FY12 EPS to Rs 6.0/Rs 8.3. Lower our TP to Rs 70 and rating to HOLD.  Key negative risk to our HOLD rating is lack of pricing action

Eicher Motors- Expensive, post stock rally: BofA ML

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Eicher Motors
Expensive, post stock rally
􀂄 Raise PO, Downgrade rating
Following a 117% YTD stock rally well ahead of expectations, we downgrade our
rating to Underperform from Buy. This is driven by (1) cut in EPS forecasts by 5%-
10% over CY10-11E, on weak Q3, and (2) expensive valuations. Our revised PO
at Rs 1,312 (up from earlier Rs1,160) is on similar imputed multiples for core
business, but recognizes cash at face value as well as the contribution from the
engine business.

Bharti Airtel: 2QFY11 weak but elasticity exists in Africa: HSBC

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Bharti Airtel (BHARTI IN)
N(V): 2QFY11 weak but elasticity exists in Africa
 2QFY11 lower than our estimates, driven by seasonality
 Africa reflects early signs of usage elasticity; MOUs up by 9%
 N(V) with TP of INR 370

Tata Motors OUTPERFORM Price target: Rs1,502: Standard Chartered

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Tata Motors
OUTPERFORM (unchanged) Price target: Rs1,502


Summary
Consolidated results surpassed expectations with JLR reporting a strong margin of 16.6%. Standalone margin,
however, disappointed with a 360bps yoy decline to 9.7%. Post strong 2Q results, we raise our fully-diluted
consolidated EPS estimates by 7.2% to Rs123.5 for FY11E (Rs115.2 earlier) and by 0.4% to Rs134.9 for FY12E
(Rs134.3 earlier). We also raise the price target to Rs1,502 (Rs1,452 earlier) and reiterate OUTPERFORM

RBI hikes policy rates; pause on the horizon: HSBC

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India Financials
RBI hikes policy rates; pause on the horizon
 RBI hikes policy rates 25bps, surprising street as well as
banks
 Home loan lending norms tightened, banks may go slow
 Preferred plays continue to be smaller private banks – YES
and IIB

BHEL: REDUCE with a PT of INR2,210:: Nomura

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 Action
We kick off a short series of research highlighting structural changes in BHEL’s
business outlook that have so far been ignored by the street. In this first note, we
highlight that near-term earnings strength is a myth, as is evident from the negative
operating cashflow in 1H FY11. We also highlight, contrary to market perception,
that pricing in the recent NTPC bulk tender implies substantial risk to BHEL’s
margins if it were to match L1 pricing. Reaffirm REDUCE and INR2,210 PT.

Tata DoCoMo’s 3G plans seem rational; R Com top pick:: UBS

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UBS Investment Research
India Mobile Sector
Tata DoCoMo’s 3G plans seem rational
􀂄 Tata DoCoMo launches 3G plans in nine service areas from November 10
According to various media reports, Tata DoCoMo’s 3G plan for prepaid
subscribers is priced at Rs350 per month and offers 500 minutes of local and/or
NLD usage and 150MB data download free. Post-paid plans for mobile phones
(3G life tariff plan) range from Rs500-2,000/month and offer 750-5,000 minutes of
local and/or NLD usage and 250MB-2GB data download free. The high-speed data
plans (worry free unlimited plans) on post-paid range from Rs1,000 to Rs2,000 and
offer 5GB-15GB of data download at speeds of 3.6-21.1 Mbps.

Tata Motors-2QFY11: JLR EBITDA Beat : Citi

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Tata Motors (TTM)
2QFY11: JLR EBITDA Beat Offsets Disappointing Parent Results

 2Q parent results disappointed on margins — 2Q EBITDA margins at 9.7% were
down 160bps Q/Q, 50bps below expectations. Slippage attributed to hardening
material costs and SGA ahead of expectations (v. similar to 4QFY10). Mgmt noted
in the con call that margins should improve sequentially as price hikes effected in
Oct positively impact results. EBITDA forecasts unchanged in parent business.

FII & DII trading activity on NSE and BSE as on 11-Nov-2010

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FII trading activity on NSE and BSE on Capital Market Segment

The following is combined FII trading data across NSE and BSE collated on the basis of trades executed by FIIs on 11-Nov-2010.

FII trading activity on NSE and BSE in Capital Market Segment(In Rs. Crores) Category Date Buy Value Sell Value Net Value FII 11-Nov-2010 3042.74 3103.16 -60.42

 

Domestic Institutional Investors trading activity on NSE and BSE on Capital Market Segment

The following is combined Domestic Institutional Investors trading data across NSE and BSE collated on the basis of trades executed by Banks, DFIs, Insurance, MFs and New Pension System on 11-Nov-2010.

DII trading activity on NSE and BSE in Capital Market Segment(In Rs. Crores) Category Date Buy Value Sell Value Net Value DII 11-Nov-2010 1071.58 1341.27 -269.69

 

Time to cash in…BPCL the best pick: Macquarie

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Bharat Petroleum
Time to cash in…BPCL the best pick
Event
􀂃 BPCL reversed its Q1FY11 losses by announcing a PAT of Rs 21.4bn, due to
allocation of Govt cash subsidy of Rs29bn. We reiterate Outperform on BPCL,
maintain our TP of Rs909, and recommend a switch from HPCL/IOCL.

GMR Infrastructure-Start-up losses impacts 2QFY11 results: BofA ML

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GMR Infrastructure Ltd.
Start-up losses impacts
2QFY11 results
􀂄 Exceptionals offset poor performance, Underperform
GMR Infra had a consol recurring loss of Rs692mn (-229%yoy) on account of
higher fixed costs at DIAL (start of T3) and Turkey airports, lower PLF at Chennai
/ Kakinada plants and lower merchant tariff (-40%yoy). An exceptional gain of
Rs1.4bn in Singapore subs, due to reversal of an impairment loss, led to reported
PAT of Rs711mn. Maintain our Underperform on looming losses at DIAL on full
capitalization of T3 and Turkey airports, losses in road assets and rich valuation.

Power Finance- Stable quarter: UBS

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UBS Investment Research
Power Finance
Stable quarter
􀂄 Profits slightly above UBS estimates
Power Finance corporation (PFC) reported a net profit of Rs 7bn (+10% y/y) in
2QFY11, slightly ahead of UBS-e of Rs 6.8bn primarily due to forex gains on
borrowings of Rs 515mn. Net interest income stood at Rs8.9 bn (+24% y/y). The
company posted a loan growth of Rs 879bn (+28% y/y) ahead of UBS-e of +25%.
Other income declined 13% Y/Y due to low interest on tax refund.

Grey Market Premium Prices for India IPO: 11th Nov, 2010

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Company Name	Offer Price	Premium
	(Rs.)	(Rs.)
Gravita India	125 (upper band)	56 to 58
Power Grid FPO	85 to 90 (+ 5% retail discount)	6 to 8

Hathway Cable- Good 2QF11 Results; Morgan Stanley

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Hathway Cable and
Datacom Ltd.
Good 2QF11 Results;
Conference Call Highlights
Impact on our views: We remain OW on Hathway
since we feel it is likely to be a major beneficiary, over
the medium term, of the ongoing digitalization of Indian
pay TV market as it strives to consolidate its position as
a leading MSO. Near term catalysts may however be
lacking.

Bharti Airtel - 2QFY11 results: Largely in-line: UBS

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UBS Investment Research
Bharti Airtel Ltd.
2QFY11 results: Largely in-line

􀂄 Consolidated revenue and net profit marginally ahead of UBS-e
Bharti reported consolidated 2QFY11 results: Revenues came at Rs152,150m vs.
UBS-e Rs150,767m. EBITDA came at Rs51,212m vs. UBS-e of Rs51,157m. Net
profit came at Rs16,612m vs. UBS-e Rs16,014m. Bharti has achieved 48% of our
FY11 EBITDA estimate in 1HFY11. 2QFY11 results are not comparable to 1Q as
Bharti consolidated Zain Africa for three months vs. 23 days in the last quarter.

Apply for Power Grid FPO at Cut Off: MS Advisory and PMS

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Apply for Power Grid FPO for listing gain as well as long term

• QIB portion subscribed 18.5x
• Gray market premium of Rs 8 (+ retail discount of Rs 4.50); retail will get at least 15% gains
• Good growth prospects

Apply for IPO

Power Grid Corporation of India Limited - Over subscription details : Nov 11, 2010

Total Issue Size	841768246
Total Bids Received	8184169500
Total Bids Received at Cut-off Price	131433445
No. of times issue is subscribed	9.72

Sr.No.	Category	No.of shares offered/reserved	No. of shares bid for	No. of times of total meant for the category
1	Qualified Institutional Buyers (QIBs)	419189323	7765160520	18.52
1(a)	Foreign Institutional Investors (FIIs)		4558978125
1(b)	Domestic Financial Institutions(Banks/ Financial Institutions(FIs)/ Insurance Companies)		2728251565
1(c)	Mutual Funds		467197640
1(d)	Others		10733190
2	Non Institutional Investors	125756797	205391810	1.63
2(a)	Corporates		118665040
2(b)	Individuals (Other than RIIs)		77168390
2(c)	Others		9558380
3	Retail Individual Investors (RIIs)	293432526	212359940	0.72
3(a)	Cut Off		130442650
3(b)	Price Bids		81917290
4	Employee Reservation	3389600	1257230	0.37
4(a)	Cut Off		990795
4(b)	Price Bids		266435

Updated as on 11 November 2010 at 1700 hrs

Forthcoming Results F2Q 2011 (Sept 2010 quarter) 12-Nov-10

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12-Nov-10
Company	Company	Company	Company	Company
Abee Info	DIL	Inwinex Pharma	Pee Cee Cosma	Softsol India
Abirami Fin	DJS Stock	Ispat Inds	Pentokey Org	Solix Tech
Aftek	DQ Entert Intl	Jaysynth Dye	Pharmaids Phar	Spanco
Agio Paper	Dynamatic Tech	Jeet Machine	PIPAVAVSHIP	Spenta Intl
AIA Engineering	Dynamic Port	Jhaveri Flexo	Plethico Pharma	Spice Islands
Akanksha Fin	Educomp Sol	Jindal Photo	Pokarna	SPICEMOBIL
Alfa Trans	Elder Pharma	JK Lakshmi Cem	Polson	Sri Adhikari Bro
Alka India	Elder Projects	JK Sugar	Prakash Inds	Sri Malini Spinn
Alka Securities	Emami Infrastructure	JMD Telefilms	Prakash Steelage	Steel Exchange
Allcargo Glob	Emmsons Intl	Joindre Cap	Precision Wires	Sterling Bio
Almondz Cap	Entegra	Kaashyap Tech	Prime Textiles	Sterling Hol Res
Alpine Housing	Escorts Fin	Kalpena Inds	Puneet Resins	STI India
Amulya Leas	Everlon Syn	Kilburn Engr	PVP Vent	Suave Hotels
Ankit Metal	Falcon Tyres	Kilitch Drugs	Rainbow Found	Subway Finance
Apis India	Federal Mogul	KIRLOSKAR EL	Raj Packaging	Sun Granite
Aplab	Fenoplast	Kriti Inds	Rajoo Engineers	Super Forgings
Apple Finance	Filatex India	KRITI NUTRI	Rajshree Sug	Supreme Tex
Arcee Inds	Four Soft	Lakshmi Over	Rama Vision	Surya Roshni
Ashiana Ispat	Galaxy Entert	LCC Infotech	Ramsons Proj	Suryodaya Plast
Asian Star	Gallantt Metal	Lincoln Pharma	Rasi Electrodes	SVC RES
Asit C Mehta Fin	Gammon India	Lok Housing	Reliance Infra	Synthiko Foils
Autoline Inds	Garware Poly	LS Inds	Reliance Power	Syschem India
B&A Packaging	Gayatri Proj	Lumax Inds	Rico Auto	Talbros Auto
Baba Arts	Genus Power	Magnum Ventures	Rishiroop Rub	Tasty Bite
Bagalkot Udyog	GG Dandekar	Mahamaya Steel	Rohit Ferro	Tata Power
Bala Tech Global	Gillanders Arb	Maharashtra Poly	Rollatainers	Tata Steel
Bang Overseas	Global Capital	Man Inds	Rotam Comm	Telephoto Ent
BCL Forgings	GLOBUS SPR	Mangalam Drugs	RS Software	Tilak Finance
BEML	Golden Sec	Manjushree Techno	SAAG RR Infra	Time Techno
Best & Crompton	Goldstone Infra	Mavi Inds	Saamya Biotech	Tirumala Seung
Bhartiya Intl	Govindji Trik	Mega Corp	Sai Capital	Todays Writing
Birla Power	Greycells Edu	Millennium Beer	Sai Inds	Towa Sokki
Birla Shloka	Gufic Bio	Modern Steel	Sampada Chem	Transfreight Co
Blue Circle	Gupta Syn	Moldtek Tech	Sanghi Inds	Tulip Telecom
Bombay Rayon	Hariyana Ship	Money Matters	Sanghvi Movers	Tuni Textile
Bombay Swad	Hathway Bhawani	Mount Shivalik	Sanraa Media	Twentyfirst Cent Mgt
BRAHMANAND	Helios & Matheson	Mysore Petro	Sarda Plywood	Unisys Soft
Brahmaputra Infra	Hella India	Nagreeka Cap	Sathavahana Isp	United Credit
Camson Bio	Himadri Chem	NCJ Intl	Sayaji Hotels	Unity Infra
Capman Fin	Himalaya Gran	NDA Securities	Seasons Furn	Universal Star
Carol Info	Hindustan Conti	Net 4 India	Seasons Tex	Usher Agro
Ceenik Expo	Hit Kit Global	Networth Stock	Selan Expl	Valecha Engr
Celebrity Fash	HPCL	Nile	Shardul Sec	Vegepro Foods
Century Extr	IL&FS TRANS	Northgate Tech	Sheetal Diam	VGuard Inds
CFL Capital	Incon Engineers	Nuchem	Shirpur Gold	Vidhi Dyestuffs
Chandni Tex	India Cements	OIL INDIA	Shiv Vani Oil	Vijay Textiles
Cinevistaas	Indian Extr	Olympic Mgmt	Shiva Suitings	VIRGOGLOBAL
Citiport Fin	Indo Amines	Orissa Minerals Development	Shree Ganesh Forg	VR Woodart
Classic Diam	Indo Tech Transf	Oscar Global	Shree Global Trd	Wallfort Fin
Consolidated Sec	Indo Zinc	Oswal Agro	Shree Nath Comm	Warner Multi
Credence Sound	Indosolar	Page Inds	Shree Raj Syntex	Wockhardt
Crimson Metal Engineering	Indraprastha Gas	Panama Petro	Shri Bajrang	Zandu Rlty
CRONIMET	Inducto Steel	Paragon Fin	SIEL Financial	Zenith Expo
Cupid Trades	Infronics Systems	Paramount Cosm	Simplex Infra
Deepak Spin	Innovative Tech	Parsvnath Dev	Simplex Proj
DEN NETWORK	Intellvisions	Pasupati Acry	Softpro Sys