Grey Market PremiumIPO :Ravi Kumar, Punjab Sind Bank, A2Z, Claris: Dec 19, 2010

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Company Name	Offer Price	Premium
	(Rs.)	(Rs.)
Claris Life	228	Discount
	(lower band)
Ravi Kumar Distilleries	64	8
	(upper band)
A2Z Maintenance	400	Discount
	(lower band)
Punjab & Sind Bank	113 to 120	40 to 42
	(+ 5% retail discount)

Infosys Technologies: Upbeat bottom-up, cautious top-down:: Kotak Securities

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Infosys Technologies: Upbeat bottom-up, cautious top-down


Caution on macro uncertainty aside, our
discussions with Infosys management suggest a fairly upbeat mood on revenue growth
over the coming quarters. Staying true to its growth strategy, Infosys continues to drive
the push for a wider F-500/G-1000 footprint and few blockbuster accounts to drive the
next leg of growth. We remain bullish on revenue growth prospects for the Tier-I
players and believe 30% rev growth is possible for Infosys in FY2012E. BUY.

UBS: Reliance Power -Significant positives in recent months

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UBS Investment Research
Reliance Power
Significant positives in recent months

􀂄 New developments at the company are significantly positive
In the past few months, there have been key positive developments for Reliance
Power. These include: 1) likely gas allocation of 9.6 mmscmd for the 2,400MW
Samalkot project; 2) Mine plan approval for 40 MTPA for Tilaiya coal mines; 3) a
Rs450bn contract signed with Shanghai Electric for Boiler, Turbine and Generator
(BTG) of 30,000MW coal-based projects; 4) a contract of Rs34bn with GE for a
2,400MW gas project; and 5) an MoU with Chinese banks and US Exim bank for
~Rs750bn financing.

Jubilant Lifesciences: Adjustment post demerger:: Kotak Securities

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Jubilant Lifesciences: Adjustment post demerger

. We adjust our estimates/valuation to account for the
demerger of agri, polymers business (16% of sales, 10% of EBITDA) into a separate
company (to be listed). Jubilant Life Sciences will now contain PLSPS, a higher margin
business. With 13% volume growth in1HFY11 in life science ingredients (65% of sales),
we believe growth is intact. We therefore maintain FY2012E sales growth rate at 16%.
However, we revise FY2011-12E PAT downwards due to (1) lower margin assumption
(down 300 bps) on account of slower recovery, (2) muted 2HFY11E due to absence of
high-margin CMO contracts. At 11X FY2012E, we maintain BUY with PT at Rs350
(14X FY2012E).  

Arvind Ltd -A long-term growth story – initiate with BUY:: Religare

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Arvind Ltd
A long-term growth story – initiate with BUY
We initiate coverage on Arvind (ARVND) with a BUY rating and a
December ’12 price target of Rs 96, an upside of 70% from current levels. We
are bullish on the Indian textiles space given the rapid shift from the
unorganised to the organised sector and the growing demand for branded
products. By virtue of its operational scale and early investments in brands,
Arvind is best positioned amongst peers to benefit from this structural shift in
the industry. The contribution of higher-margin and more capital-efficient
segments is increasing and we see return ratios settling at levels much higher
than those reported in the recent past.

United Phosphorus: Weather impacts 3QFY11E sales:: Kotak Securities

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We believe 3QFY11E will be muted due to poor
sales/volume growth on account of (1) unseasonal rains in India, and (2) abnormal
weather conditions in L. America. While we retain our 4QFY11E est., we believe
FY2011E sales growth guidance of 10-15% will not be met. We leave our growth
assumptions for FY2012E intact and reduce FY2011-12E PAT est. by 12% and 5%.
Extension of winter in NA/EU remains a key risk to our 4QFY11E estimates. At 9X
FY2012E, we maintain BUY with PT being revised down to Rs220 (13X FY2012E).

UBS: Prestige Estates Projects- Best proxy to Bangalore growth ; Buy

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UBS Investment Research
Prestige Estates Projects
Best proxy to Bangalore growth 


􀂄 Strong brand with a robust track record
We initiate coverage of Prestige Estates Projects (Prestige), an established
Bangalore-property developer, with a Buy rating and a price target of Rs220.00 We
believe its: 1) joint development model, which gives it access to a prime landbank
of 51msf; 2) strong track record in value creation; and 3) mix of luxury and mass
housing, and rental and saleable office and retail assets, differentiate it from peers.
We think Prestige provides the best exposure to Bangalore’s growth potential (84%
of our NAV estimate).

52-Week Loser: Raj Oil Mills

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52-WEEK LOSER: RAJ OIL MILLS

Despite being in the fancied FMCG sector that enjoyed such a favourable run over the past year, the stock of the newly listed Raj Oil Mills has declined by over 40 per cent in a year. The company makes and markets edible oils under the brand names Guinea (groundnut, sunflower and soyabean cooking oils), Cocoraj (coconut oil) and Must Raj (mustard oil).

In fact, the company which made its IPO at Rs 120 a share, saw the shares trade above the issue price only briefly before they began charting a steady downward journey. Two factors may have contributed to the stock's poor performance. One, a delay in setting up one of its expansion projects funded by the IPO. While the backward integration project at Rajasthan to crush mustard and sesame seeds was commissioned, the new refining facility at Manor was substantially delayed on account of escalation in project costs and design changes. Two, the company's financial performance since its IPO has been modest. After annualising its numbers for comparability (the company had a 15-month accounting period), the net profits dipped by about 10 per cent for the fiscal ended March 2010 even as sales expanded by 16.5 per cent.

The company's margins have been dented in recent quarters by rising prices of inputs as well as raw oils. Still, the stock's low valuation (PE of eight times) may help to contain a further fall in stock prices if the current financials hold up.

— Aarati Krishnan; Business Line

ICICI research: Banking Industry Update Dec ‘10

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Taking a breather, negatives surround…
Banking stocks corrected across the board on the PSU banks ‘bribery for
loans’ scam, 2G and MFI loans, liquidity concerns and rising G-Sec yields.
However, one has to take a call on whether the sector will keep correcting
further. We believe the sector will continue to remain under pressure in
the near term where stocks may not give a sharp bounce-back but shall
remain around these levels until we are able to see a sharp uptick in credit
and deposits growth alongside pressure on yields easing off

Cox and Kings – Invest:: Business Line

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Cox and Kings – Invest

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INVESTMENT FOCUS

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Investors with a long-term perspective can buy the stock of Cox and Kings (C&K), a leading travel and tours operator in the country.

The company's entrenched presence in domestic and major international markets puts it at a distinct advantage in the highly-fragmented tourism industry. Rising disposable income, favourable demographics of Indians, with many increasingly seen opting to holiday abroad, in addition to improving trends in inbound and outbound tourism underscore our recommendation. Valuations, given these growth drivers, appear fairly reasonable. At current market price of Rs 543, the stock trades at about 20 times its likely FY12 per share earnings.

Lumax Industries: Buy:: Business Line

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Lumax Industries: Buy

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The company's market leadership position in the lighting solutions space and its diversified clientele drive earnings growth.

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S. Muralidhar  - Business Line - Parvatha Vardhini C

Investors with a two-to-three year perspective can buy the shares of Lumax Industries, a leading player in the automotive lighting business. From its 52-week high of Rs 330 in mid-September, broader market volatility has seen the stock shed about 20 per cent. The current market price of Rs 266 is hence an attractive entry point for investors.

At this price, the stock trades at a valuation of 13 times its annualised per share earnings for the first half of this fiscal (that is, April-September 2010). The company's market leadership position in the lighting solutions space and its diversified clientele in the backdrop of strong demand for automobiles give good visibility to earnings growth in the near-to-medium term.

Lumax supplies head lamps, tail lamps, sundry and auxiliary lamps to the auto industry and has over 60 per cent market share.

McNally Bharat Engineering: Buy: Business Line

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Restructuring its business to focus more on project implementation and hiving off its products division to a subsidiary has helped the company clock growth.

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Vidya Bala -Business Line

Investors can consider accumulating the stock of turnkey engineering solutions provider McNally Bharat Engineering. The stock is among the mid-caps that have fallen steeply as a result of broad market volatility. The correction offers a good opportunity to add the stock. At the current market price of Rs 204, the stock trades at 10 times its expected consolidated per share earnings for FY-12. As the rights issue proposed last year has not shown any signs of taking off, shareholders can use the current weakness to accumulate the stock.

JP Morgan: India Telecoms -Strong November GSM adds

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• India added 17.2m GSM subs in November, the highest ever
monthly GSM net adds: The 17% M/M increase in net adds is driven
primarily by an increase of net adds at Idea Cellular and Vodafone.

• Idea: strong net adds; Bharti: momentum sustained: Idea
Cellular’s net adds at 2.8m in November are the highest we have on
record and are up 55% M/M. Bharti’s net adds at 3.1m are up ~3%
M/M and are sustaining above the 3m mark. Vodafone too reported a
healthy net add number of 3.1m, +26% M/M, the highest since March
this year. Overall, we believe the holiday season promotions have
helped in November.

UBS: Coal India - Powering the tiger

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UBS Investment Research
Coal India
Powering the tiger

􀂄 We initiate coverage of the world’s largest coal company
Coal India is the world’s largest coal company by both production and reserves. In
FY10, it produced 431Mt of raw coal (92% thermal coal), and had 64.8Bt of
resources and 21.8Bt of extractable reserves. The company produces around 80%
of India’s coal output. We forecast FY10-13 sales/earnings CAGRs of 12%/18%,
to reach Rs662bn/Rs161bn by FY13E. We believe Coal India is best positioned to
capitalise on rising domestic coal demand.

Kotak Securities: Suzlon Energy Research Update: TP s 49

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SUZLON ENERGY LTD
PRICE: RS.48
RECOMMENDATION: REDUCE
TARGET PRICE: RS.49
FY12E P/E: 64.1X

q Success on international order intake remains elusive due to prevailing
economic crisis in Eurozone.
q Management maintains that prevailing under capacity in the renewable
energy space in India with changing regulatory guidelines could lead to
significant capacity addition for the same in domestic market.
q While we would be monitoring the domestic orders inflow trend going
ahead, we are concerned about bleak business visibility reflected by subdued
order book of the company.

Buy Cairn India: Target Rs 378 says Kotak Securities

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Cairn India Limited
PRICE : RS.336
RECOMMENDATION : BUY
TARGET PRICE : RS.378
FY11E: P/E: 9.9X

Cairn India Ltd (CIL) is one of the biggest private exploration and production
(E&P) companies in India. It has been developing exploration assets
for more than a decade in India and is one of the lowest cost producers in
the world. Its E&P portfolio consist of 11 upstream assets with a key asset
located in Rajasthan having 2P oil reserve of ~4bn bbls. It has proven
track record of converting discoveries to production so we believe that
any commercial discovery in the KG basin and Sri Lanka block can be converted
into production at lowest possible cost and shortest possible time,
which will add significant value to CIL. However on a conservative basis
we have not taken the same in our valuation. Our DCF-based price target
stands at Rs.378/share. We are positive on Cairn’s long term growth prospects.
Therefore, we are initiating coverage with BUY recommendation
on the stock with 12.5% upside potential.

Fixed Deposits: HDFC Platinum Deposit Scheme: Sprism

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If you are looking for a Fixed Deposit (FD) scheme that fetches an attractive rate of interest with high safety, then HDFC Platinum Deposit Scheme is one of the best products available in the current market scenario. The scheme offers attractive rates in the range of 8.50-8.80% p.a for 22/33 Months tenure w.e.f. December 09, 2010. It also carries a rating of ‘FAAA’ and ‘MAAA’ by CRISIL and ICRA respectively indicating highest safety.

Rate of Interest:

Period	Monthly Income Plan	Quarterly Option	Half Yearly Option	Annual Option
22 Months	8.50%	8.55%	8.65%	8.80%
33 Months	8.50%	8.55%	8.65%	8.80%
Minimum Amount (Rs)	40,000	20,000	20,000	20,000

The above rates are applicable for deposits below Rs. 1 Cr

Scheme Details:

• Loan against deposit available after 3 months from the date of deposit
• No TDS on interest paid upto Rs.5,000 in a financial year
• Interest compounded annually under Cumulative Interest Plan
• 0.25% p.a. additional interest for Senior Citizens

Who can apply?

Individuals: Residents, minors through guardians, HUF and NRIs

Trusts & Institutions: Charitable Trusts, religious trusts, educational institutions, association of persons, co-operative societies, partnership firms and others as decided by management

About HDFC:

HDFC was incorporated in 1977 with the primary objective of meeting a social need - that of promoting home ownership by providing long-term finance to households for their housing needs. It is a professionally managed organisation with a board of directors consisting of eminent persons, professionals who represent various fields including finance, taxation, construction and urban policy & development. Over the years, HDFC has developed a vast client base of borrowers, depositors, shareholders and agents, and it hopes to capitalise on this loyal and satisfied client base for future growth. Internal systems have been developed to be robust and agile, to take into account changes in the volatile external environment. HDFC has developed a network of institutions through partnerships with some of the best institutions in the world, for providing specialised financial services.

Company Financials:

Particulars	2005-06	2006-07	2007-08	2008-09	2009-10
Gross Income (Rs.Cr)	4,278.39	5,896.26	8,196.05	11,017.66	11,360.83
Profit After Tax (Rs.Cr)	1,257.30	1,570.38	2,436.25	2,282.54	2,826.49

Markets may test new highs; QE3 not needed: Citi (in ET)

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In an interview to ET Now's Nikunj Dalmia, Pankaj Vaish , MD & Head - Mkts, Citi South Asia, gives his views on the road ahead for markets. 

Excerpts: 

In last one month literally we have seen it all, a scam, a great recovery and now a mild suspicion that Indian markets have topped out? 

Yeah, that's right. We were talking right after QE2 saying that there could be perversely an area where actually US bond deals go higher, the dollar gets stronger and emerging markets and commodities, which were thought to be unambiguous beneficiaries of this may actually lag, so we are starting to see the Indian market sort of settle down. I would not say it is in trouble right now but it definitely needed to settle down and it has. Some of the highflying sectors have come off. 

Hero Honda: Headwinds remain; valuations still high: Kotak Sec

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.Hero Honda stock is expected to remain
volatile until clarity emerges on the Hero group’s product strategy after the split between
Hero and Honda. We believe valuations are rich, trading at 14.7X FY2012E EPS at a 7%
premium to historical averages given our expectations of moderate earnings growth
(10% CAGR over FY2011-13E). Hence, we maintain REDUCE rating on the stock.

Energy: Phase of extreme pessimism may be a good time to invest:: Kotak Securities

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We would advise investors to invest in downstream stocks as the current valuations suggest an overly
pessimistic assumption of (1) crude prices remaining high in perpetuity, (2) no
deregulation of diesel prices and (3) the possibility of higher-than-expected subsidy
burden on downstream companies. We see the hike of `3/liter on gasoline as allaying
investor concerns on credibility of deregulation process We expect diesel deregulation
over the next few months given a likely sharp dip in inflation. We maintain our BUY
rating on BPCL and HPCL and upgrade IOCL to BUY (ADD previously)