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Id wishes to everyone from IndiaER.blogspot.com;
BSE/NSE closed on Nov 17th 2010 on occasion of Id
16 November 2010
Id wishes to everyone from IndiaER.blogspot.com; BSE/NSE closed on Nov 17th
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Id wishes to everyone from IndiaER.blogspot.com;
BSE/NSE closed on Nov 17th 2010 on occasion of Id
HDIL – 2QFY2011 Result Update - Angel Broking
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HDIL – 2QFY2011 Result Update
Angel Broking maintains a Buy on HDIL with a Target Price of Rs302.
HDIL’s 2QFY2011 results were marginally above our expectations on account
of steady TDR volumes and sale of high-margin FSI in Vasai and Virar.
Further, the company entered into MoU for sale of FSI worth `650cr, which
would be booked over the next three quarters. In its earnings call, HDIL
highlighted that the TDR prices and volumes would sustain at current levels,
since the government has still to issue an official notification regarding
increase of FSI. It also outlined its aggressive strategy for new residential
launches entailing ~27mn sq ft, which would improve its cash flow going
forward. Further, its recent QIP issue is expected to expedite execution of
phase II of the airport project. Hence, we maintain a Buy on the stock.
Real Estate - festival season a cracker, but Mumbai fails to join: Edelweiss
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n Robust volumes in festival season; Mumbai the exception
Volumes on a pan-India level were robust across cities in September-October 2010, with the NCR region and South Indian cities of Bengaluru and Chennai continuing to post uptick in volumes. Also, inventory levels remained steady at around seven months in spite of new launches across India. However, Mumbai has been the exception with volumes declining ~40% from peak of May 2009 which is attributable to the fresh round of price hikes of 15-20% since April 2010 effected by developers, which has dampened buyers’ sentiments. We expect volumes to continue to be robust in 2010, with stable prices across India, except Mumbai, where we expect prices to correct ~10% in the near term and revert to April 2010 level.
SENSEX 20,000 : WHAT SHOULD INVESTORS DO? ::Sprism
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On March 9th, 2009 the Sensex closed at 8160 points. Cut to just around over
one and a half years later, at the time of writing this, the Sensex is at 20345 - a
whopping 12185 points or 150% higher. Who could have ever thought that
this was possible?
This is precisely the reason why I have repeatedly observed that the market
is like a class room where we are taught lessons. The same lesson is taught to
you time and again till you learn it properly. Once you
have finished your learning, you move on to the next
class room where you are taught another lesson.
Power Grid, RPP Infra, MOIL: Grey Market Premium Prices: 17th Nov, 2010
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| Company Name | Offer Price | Premium |
| (Rs.) | (Rs.) | |
| Power Grid FPO | 90 (+ 5% retail discount) | 7 to 9 |
| RPP Infra Projects | 68 to 75 | 3 to 5 |
| Manganese Ore (MOIL) | 600-660 (rumor) (+ 5% retail discount) | 30 to 50 |
INVESTOR VS ISSUER- THE IPO GAME: Sprism
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Once upon a time, investing in a ‘public issue’ was akin to winning a lottery.
There used to be a government body called “Controller of Capital Issues”
which laid down the pricing rules. Pricing was based on past performance
and the formula worked in favour of the investor. So much that companies
were reluctant to issue shares. And new companies with no track record, had
to issue shares at ‘par’. There used to be a smaller investor base, but most
public issues were very well received and the investor made tons of money.
Imagine if you had got 100 shares of Colgate (when the company went public
in 1978) at a princely sum of Rs.26 per share! If my memory serves me right,
you got this money back in the form of dividends in two or three years! And if
you did not sell them, you would be having a few thousand shares with you!
Can QE2 steer the Global Economy thro’ troubled waters: Sprism
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The FIIs pumped a record $6 bn in Indian equities in the month of October,
accounting for almost 25% of the total inflows in the current calendar year.
With this heavy inflow, the total investment by foreign funds has almost
crossed $25 bn in 2010 – the highest in a single year. After a frenzied rally in
the previous month, the Sensex and Nifty dropped an average of 0.2% in
October. This was primarily due to the fact that a large chunk of FII flows
were directed towards the mega public issue offering by Coal India and
overseas fund flows into secondary markets remained a trickle.
FII DERIVATIVES STATISTICS FOR 16-Nov-2010
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| FII DERIVATIVES STATISTICS FOR 16-Nov-2010 | |||||||
| BUY | SELL | OPEN INTEREST AT THE END OF THE DAY | |||||
| No. of contracts | Amt in Crores | No. of contracts | Amt in Crores | No. of contracts | Amt in Crores | ||
| INDEX FUTURES | 73831 | 2231.20 | 63931 | 1930.25 | 583471 | 17545.75 | 300.95 |
| INDEX OPTIONS | 542920 | 16367.27 | 527975 | 15917.53 | 1924377 | 57622.97 | 449.74 |
| STOCK FUTURES | 99510 | 2889.04 | 86046 | 2502.98 | 1505347 | 41593.73 | 386.06 |
| STOCK OPTIONS | 28379 | 914.61 | 27870 | 897.29 | 36535 | 1046.20 | 17.31 |
| Total | 1154.07 | ||||||
FII & DII trading activity on NSE and BSE as on 16-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 16-Nov-2010. | ||||||||||||||||
| ||||||||||||||||
| 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 16-Nov-2010. | ||||||||||||||||
| ||||||||||||||||
EDUCOMP SOLUTIONS- Focusing on K-12; Edelweiss
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Results marginally below expectations
Educomp’s Q2FY11 PAT, at INR 582 mn (up 2% Y-o-Y and 60% Q-o-Q), was
marginally below our and Street’s estimates. The variance was account of lowerthan-
expected EBITDA margins which was countered by below estimated tax rate.
Reliance Capital - A mixed quarter. : Kotak Sec
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Reliance Capital (RCFT)
Banks/Financial Institutions
A mixed quarter. Reliance Capital continued to build its core businesses during
2QFY11. Life insurance reported stable margins but the sudden ban on universal life
policies (ULP) will likely affect medium-term volumes. The NBFC reported about 10%
qoq loan growth while Reliance Money reported marginal profits. We reinitiate
coverage with a REDUCE rating. We believe regulatory clarity on ULPs and momentum
of business in lending and retail distribution will be imperative to drive stock
performance.
NSE, Bulk deals, 16-Nov-2010
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Security Name | Client Name | Buy / Sell | Quantity Traded | Trade Price / Wght. Avg. Price |
Accel Frontline Limited | CHANDER KANTA | BUY | 63,000 | 64.49 |
Accel Frontline Limited | CHANDER KANTA | SELL | 1,20,765 | 62.80 |
Accel Frontline Limited | KANCHAN CHHABRA | BUY | 7,68,081 | 63.34 |
Accel Frontline Limited | KANCHAN CHHABRA | SELL | 6,56,987 | 63.34 |
Agro Dutch Industries Ltd | PENTA HOMES PRIVATE LTD | SELL | 2,99,786 | 22.12 |
Compuage Infocom Ltd | NIRAV JAYSHUKHBHAI DOSHI | BUY | 26,821 | 243.97 |
Pharma Q2FY11 Results Review: Emkay
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Pharma Q2FY11 Results Review |
n Emkay Pharma universe grew by 13.8% (est. of 11.2%), driven by 51% and 26% each in Panacea Biotec, Aurobindo and Sun Pharma. Most of the companies in domestic pharma market reported robust growth.
n OPM contracted by 46bps (EBIDTA growth of 11.4%) to 21.6% (est. of 21.5%). Sun Pharma (34% vs. est. of 29%) & Panacea Biotec (22% vs. est. of 17.2%) surprised positively while Divi’s (33.9% vs. est. of 40.4%) & Dishman (17.4% vs. est. of 23) surprised negatively. During the quarter, most of the companies reported higher gross margins driven by improved product mix and higher contribution of domestic formulation business. However higher employee cost and SGA cost on account of ramp-up in sales force impacted operating margins.
n Despite higher depreciation cost (up 26%), APAT grew by 14% (est. of 6%) because of lower interest cost (down 15%).
n CRAMS companies again disappointed in this quarter. We expect gradual recovery in second half and strong growth in FY12E, driven by a) increased outsourcing by global players post consolidation phase and b) lower base effect
n Though the valuations of pharma sector has moved up (trading 8-10% premium to 5 years average multiple) but they are not yet in stretched territory
n While we remain positive on the sector (as fundamentals remain strong), we believe there is less room for error after the recent outperformance. Post strong outperformance, we believe that it pays to be more stock specific now rather than having a bullish stand on entire pharma space
n In the large cap - DRL, Lupin and Cadila are our preferred bet.
n In mid cap - we continue to like Torrent, Aurobindo and Ipca Labs.
n In the CRAMS space - we prefer Jubilant LifeSciences over other companies because of valuation comfort
IIFL: India Market views: Nov 16th 2010
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Engineering & Construction (Working-capital woes for contractors): Post a dismal 1QFY11, revenue growth has started to pick up for engineering companies. However, mid-cap contractors are pulling down aggregate numbers, as elongated working-capital cycles and glitches in public-sector projects constrain execution. While execution would pick-up in 2H, margins could face further headwinds from input price increases in addition to interest costs. Order inflows for 2Q have been robust (up 30% YoY) and aggregate order coverage ratio at 3.1x provides adequate visibility. However, earnings traction through improved execution is required to reverse the recent underperformance.
Mahindra Satyam (A disappointment, SELL): Satyam’s exit revenues (2QFY11: US$m 267; -2.2% QoQ) and EBITDA margins (2QFY11: 5.9%; -380bps QoQ) were much below our estimate. This highlights the severity of the task ahead for its management. Moreover, visibility on revenue growth is poor and the company faces an uphill task in winning large deals. Even utilisation and pyramid efficiencies that were highlighted as the key margin levers depend on revenue growth and a consequent pickup in hiring. As such, there remains a risk of EBITDA margins falling further before they start improving. We maintain our negative stance and are revising down our FY11 and FY12 revenue estimates by ~10% and EPS estimates by ~35-50%.
R.P.P. Infra Projects - IPO Note (Keynote Capitals)
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note of the IPO of R.P.P. Infra Projects Ltd.
Issue Highlights
Price Band
Minimum Bid Lot Size : 80 Equity Share
IPO open during
Book Running Lead Manager : VC Corporate Advisors
To list on
IPO Grading
PE
Market Cap post-listing
Market Cap of Free Float : Rs48.8Cr or $10.8mn (based on the cap price)
* based on FY10 EPS.
IPO of 6.5mn equity shares of Rs10 each, aggregating to Rs48.75Cr or $10.8mn (at the cap price) consisting of a fresh issue of 6.1mn shares aggregating to Rs45.75Cr (at the cap price) and an offer for sale of 0.4mn shares aggregating to Rs3Cr.
BSE, Bulk deals, 16/11/2010
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| Company | Client Name | Deal Type * | Quantity | Price ** |
| Accel Front | CHANDER KANTA | B | 319098 | 63.45 |
| Accel Front | CHANDER KANTA | S | 211259 | 63.50 |
| Accel Trans | PORINJUV VELIYATH | B | 56000 | 32.78 |
| Arrow Sec | TUSHAR RAMESHBHAI PATEL | B | 58200 | 77.28 |
| BGIL Films | MBL & Co. LTD. | B | 50000 | 16.06 |
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