SP Tulsian- multibagger stock ideas for 2011.

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SP Tulsian- multibagger stock ideas for 2011.

He is bullish on

• Binani Industries, 
• JP Infratech, 
• Kansai Nerolac and 
• First Leasing.

Tulsian is positive on Power Grid in the long-term.

However, he is cautious on

• Suzlon Energy, 
• Praj Industries and 
• Core Projects.

Q: Let us start off with Binani Industries, that stock has been on a roll offlate, the last two-three trading sessions have been very smart, what is the story there?
A: There is interesting story developing in this stock. I have covered this stock earlier when it was ruling at around Rs 140. Since then we have seen it moving to Rs 240 and then the market carnage has brought it down to about Rs 165-170 levels. As you have rightly said in last couple of days, we have seen it moving by about Rs 50-60. This is the behaviour, these kind of stocks show, that if you have the conviction that the fundamentals are intact, which I have in this stock, then you see this kind of upmove coming in.

Grey Market premium -C. Mahendra Export, Shekhawati Poly Yarn IPO: 1 January, 2011

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Company Name	Offer Price	Premium
	(Rs.)	(Rs.)
Shekhawati Poly Yarn	30 (Fixed)	1 to 3
C. Mahendra Export	95 to 110	11 to 13

C Mahendra Exports - IPO details

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C Mahendra Exports

Issue Terms
Issue price / Floor Price (Rs)	95-110
Application per share (Rs)	95.00
Minimum investment amount (Rs)	5,700.00
Minimum bid (no of shares)	60 shares and in multiples of 60 thereafter
Maximum Shares for Retail	2100-1800

Issue Date and Size
Issue opens	31-Dec-10
Issue closes	06-Jan-11
Listing on	BSE, NSE
Issue size (Rs cr)	142.50-165
Mkt cap at issue price (Rs cr)	570-660

Shares on Offer	Lakhs
Total shares offered	150.00
Of above, offered to public	150.00
Post-issue shares	600.00

Lead Managers & Registrar
Lead Manager(1)	YES Bank Limited
E-mail	dlcm.ipo@yesbank.in
Lead Manager(2)	Anand Rathi Advisors Limited
E-mail	cm.ipo@rathi.com
Registrar	Link Intime India Private Limited
E-mail	cmel.ipo@linkintime.co.in

Company Contact Details
Company's address	1204 Panchratna, 12th Floor, Opera House, Mumbai
Pincode	400 004
Tel No.	91 22 2363 1487
Fax No.	91 22 2363 4251
Website	http://www.cmahendra.com

Description
It is an integrated diamond and diamond jewellery player encompassing sourcing of rough diamonds,  trading of rough and polished diamonds, processing of diamonds and manufacture of diamond jewellery.

Objects of Issue
Finance setting up of a diamond processing unit at  Gujarat Hira Bourse, SEZ, Ichchhapore, Surat Finance setting up a jewellery manufacturing unit at Mumbai Finance setting up retail outlets Finance brand development expenses Investment in capital of C Mahendra BVBA

Weekly Review Report – January 01 ,2011 :Angel Broking

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Markets continue on the upward trajectory
During the week, the Indian stock market continued its strong performance,
with the Sensex and Nifty rising by 2.1% and 2.0%, respectively. The Indian
market showed resilience during the week, gaining despite a number of
markets across the world remaining flat or negative. The week was much
lesser volatile, unlike the earlier weeks. During the week, India's food inflation
increased to 14.1% compared to 12.1% during the previous week. BSE midcap
and small-cap indices outperformed the large-cap indices, growing
2.3% and 3.4%, respectively. On the sectoral front, the BSE realty index was
the biggest gainer, up 3.3%, followed by the BSE FMCG index and BSE
Bankex, up 2.8% each. The BSE oil and gas index lagged the other indices,
losing 0.3% of its value during the week.

Edelweiss Portfolio Optimizer: The beauty of Long – Short Jan 2011

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Edelweiss Portfolio Optimizer

Top Buys (Long)
and Top Sells (Shorts)

by Edelweiss for January 2011

20 Mid Cap Ideas for 2011 from Antique

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20:11 Ideas for 2011 (Click on Company name for report)

20 Mid Cap Ideas for 2011 from Antique (Click on Company name for report)


1 Oil India  

2 Siemens  

3 Idea Cellular

4 Sun TV Network

5 Union Bank of India

6 Shriram Transport Finance Co

7 Exide Industries

8 Dish TV India 

9 Pantaloon Retail (India) 

10 Aurobindo Pharma  

11 Petronet LNG  

12 Shree Renuka Sugars 

13 Essar Shipping, Ports & Logistics

14 Havells India

15 BGR Energy Systems

16 Mahindra Holidays & Resorts

17 Phoenix Mills

18 Sterlite Technologies  

19 Escorts  

20 Tecpro Systems  

Buy Tecpro Systems: 2011 Mid-Cap pick: Antique

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Tecpro Systems Limited - Growth “Pro”


Investment rationale
Order inflows surge post IPO - YTD INR33bn orders
The order book of Tecpro Systems Limited (“Tecpro”) stood at INR23bn at the
end of July 31, 2010 (disclosed order book at the time of initial public offer).
The company has seen a further surge in orders post IPO and new orders of
INR33bn have been bagged in this fiscal till date. The company has moved
from being a pure material and ash handling player to a complete balance
of plant (BoP) package provider.

Buy Escorts: 2011 Mid-Cap pick: Antique

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Escorts Limited
Favourable Tailwinds!



Investment rationale
Selling Investments - focusing on business!
Escorts has restructured its entire business by divesting its stake in all its loss
making businesses (telecom, healthcare, etc.) and using the proceeds to repay
the huge debt accumulated for the same. Subsequently, it has now enhanced
its focus on its core businesses (agri-machinery, railway equipment, auto
components and construction equipment). In our opinion this could not have
come at a better time as all its core businesses are at an inflection point with
favourable tailwinds and Escorts is well-positioned to benefit from the same.

Buy Sterlite Technologies: 2011 Mid-Cap pick: Antique

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Sterlite Technologies Limited -Spools of growth


Investment rationale
Operational scale and market leadership
Sterlite Technologies Ltd. (STL) is a market leader in the OF, OFC and Power
Conductors segments and is amongst the ‘Top Five’ global manufacturers in
both segments. It has built up strong manufacturing expertise in noth verticals
and is amongst the cheapest global manufacturers in both segments. Its
domestic market share is ~ 25%, with a sizeable portion of the National Grid
(~25%) set up using its conductors. In the OF and OFC segments, STL has
50% market share in India, 7% in China and 4% in CIS.

See markets at 10%-15% higher in 2011: ASK

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In an exclusive interview with CNBC-TV18, Sameer Kamdar, CEO of the Portfolio Management Business, ASK, puts forth his outlook for 2011. Kamdar says he sees newer highs at about 10%-15% higher than the previous highs.

Buy Phoenix Mills: 2011 Mid-Cap pick: Antique

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Phoenix Mills Limited- Real estate play on retail revival


Investment rationale
Stable revenues from rental model
Phoenix Mills Ltd. (Phoenix) is the pioneer of utilising textile mill land in Mumbai
for retail and entertainment purposes. In 1987, the company developed High
Street Phoenix, a first of its kind consumption centre, on its mill land. Phoenix
owns and operates retail-led mixed use projects and its focus on high quality
retail projects with rental income are the key differentiators.

Buy Mahindra Holdiays & Resorts: 2011 Mid-Cap pick: Antique

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Mahindra Holdiays & Resorts (I) Limited
Sunny days ahead


Investment rationale
Diversified product profile
MHRIL has a diversified product basket which is customised to various price
points and customer preferences. Its formidable marketing reach helps monetise
this product basket in the form of an increasing member base.

Buy BGR Energy Systems : 2011 Mid-Cap pick: Antique

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BGR Energy Systems Limited
Graduating



Investment rationale
Large EPC/BTG order tendering expected in the next few months
As the orders for XIIth plan EPC/BTG are underway, a large number of tenders
will be awarded over the next 1-2 years. NTPC bulk tenders I (11*660MW)
and II (9*800MW) are expected to be finalised over the next few quarters.
BGR has put up its bid for the boiler portion of NTPC bulk tender I for which
it would be one of the key contenders. We believe NTPC bulk tender II will be
floated in the next 2-3 quarters and expect finalisation of the EPC players for
the Suratgarh and Chhabra projects by the end of FY11, in which BGR is one
of the final bidders. Furthermore, a number of IPPs are expected to come up
with EPC or BTG orders in the near term.

Buy Havells: 2011 Mid-Cap pick: Antique

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Havells India Limited
All lit up and ready to shine



Investment rationale
Comprehensive product profile
HIL’s product profile in the electricals space spans the entire value chain from
cables and wires to switchgears. Over the years, it has kept adding products
to its portfolio while maintaining strong focus on quality. These factors have
contributed to HIL becoming a ‘One-Stop-Shop’ for customers, enabling it to
capture a larger chunk of the Indian consumer spend on household electricals.

Buy Essar Shipping, Ports and Logistics: 2011 Mid-Cap pick: Antique

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Essar Shipping, Ports and Logistics Limited
Demerger to unlock value



Investment rationale
To demerge port business
The company has embarked on a demerger scheme which envisages the split
into two, i.e., a port and a shipping entity. As per the proposed demerger
scheme, investors will get two shares of Essar Port and one share of Essar
Shipping.

Buy Shree Renuka Sugars: 2011 Mid-Cap pick: Antique

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Shree Renuka Sugars Limited
Brazilian Samba



Investment rationale
Flexible cane price mechanism
Shree Renuka Sugars Limited (SRS) follows a flexible cane price mechanism
where the cane costs are linked to the sugar price, subject to the floor of Fair
and Remunerative Price (FRP), thereby minimising the cyclicality to the profits.

Buy Petronet LNG: 2011 Mid-Cap pick: Antique

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Petronet LNG Limited- Fuelling India’s gas needs

Investment rationale
Natural Gas availability - The future does not look so bright
Gas demand in India is projected to grow to 305mmcmd by FY14e. However,
MoP&G's projections puts expected gas supply in most optimistic scenario at
201mmcmd by FY16e leaving a huge shortfall, further accentuated by delay
in ramp up of KG-D6 output. Petronet LNG Limited (PLL) stands to benefit from
this natural gas deficit which can be met through increased LNG import
volumes only.

Buy Aurobindo Pharma: 2011 Mid-Cap pick: Antique

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Aurobindo Pharma Limited
Execution mode


Investment rationale
Pfizer-like deals improve execution capabilities of Aurobindo
Aurobindo Pharma (Aurobindo) has over the years emerged as a preferred
supplier to global pharma majors and has entered into long-term supply
contracts with them. It has entered into a 15-year licensing and supply
arrangement with Pfizer for the supply of 40 products in the orals and injectable
segment. As per the agreement, Pfizer will in-license an array of generic pills
and injectable medicines from Aurobindo, as it looks at off-patent medicines
for the growth. We estimate that the deal with Pfizer can boost revenue by
USD200m by FY14e for the company. The current agreements are targeted
towards US and European markets and will continue to explore ways to
further extend this partnership.

Buy Pantaloon Retail: 2011 Mid-Cap pick: Antique

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Pantaloon Retail (India) Limited
Making the right moves



Investment rationale
Revenue growth to be aided by same store growth and space expansion
According to the management, the growth in revenues would be driven equally
by same store sales and expansion of retailing space. According to our
estimates, the retail space would grow by1.6m square feet during FY11 and
1.8m square feet per annum during FY12 and FY13. We expect sales to
grow by 23% CAGR during FY10-13e.

Buy Dish TV: 2011 Mid-Cap pick: Antique

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Dish TV India Limited
A lot to "Wish" for


Investment rationale
Leadership position in DTH industry
Dish TV Limited (DTV) has consistently maintained its leadership position in
the Indian DTH industry with 32% market share and a strong subscriber base
of 9.2m as on Nov 30, 2010. We estimate Dish TV’s gross subscriber base
to reach ~14.9m by FY13e, whereby the company can leverage on its high
fixed content cost.

Buy Exide Industries: 2011 Mid-Cap pick: Antique

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Exide Industries Limited
All charged up!



Investment rationale
Undisputed leader in the OEM segment
Exide Industries Limited (EIL) is the undisputed leader for automobile batteries
in India with a market share of 75% in the OEM segment. EIL's almost
monopolistic position in auto batteries clearly makes it the biggest beneficiary
from the uptrend in the Indian auto industry. Its ability to maintain high margins
in a rising commodity scenario (whilst gaining market share) is testimony of
the strength of brand "Exide".

Buy Shriram Transport Finance: 2011 Mid-Cap pick: Antique

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Shriram Transport Finance Co Limited
On growth highway



Investment rationale
Shriram Transport Finance Company Limited (STFC) is the largest asset
financing NBFC in India, with an AUM of over INR300bn. Over the years, it
has established its presence and reach via a strong network of origination,
disbursement and collection in many pockets of India and also has developed
a strong brand equity in the CV financing.

Buy Union Bank of India: 2011 Mid-Cap pick: Antique

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Union Bank of India
Turning the corner



Investment rationale
Strong focus on branch expansion and CASA to help maintain margins
Management’s focus on branch expansion and investment in technology has
yielding results with the bank gaining market share in CASA deposits. Savings
deposits have averaged 20% over the last five years which should help Union
Bank (UBI) maintain its margins at current levels in a rising interest scenario.

Buy Sun TV Network: 2011 Mid-Cap pick: Antique

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Sun TV Network Limited
Shining ‘Bright’ as ever!



Investment rationale
Sustained leadership commanding premium
With sustained dominance in the South regional genre, which seconds
the Hindi GEC genre in terms of viewership, Sun TV Network (Sun) is able
to command premium ad rates in these markets. As a result, Sun TV has
managed to increase its ad rates every year during the month of January.
We expect scale benefits to persist and estimate advertisement revenue
CAGR of 25% over FY10-12e

Buy Idea Cellular: 2011 Mid-Cap pick: Antique

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Idea Cellular Limited
Get ‘idea’



Investment rationale
Well positioned for long-term value creation
Idea Cellular is the fifth largest telecom operator in India, in terms of wireless
subscriber market share, but third in terms of revenues. Thanks to its attractive
2G/3G spectrum footprint, strong brand and execution capabilities, we expect
Idea to further consolidate its position as a Tier-I wireless operator, alongside
Bharti and Vodafone-Essar.

Buy Siemens: 2011 Mid-Cap pick: Antique

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Siemens Limited: Transformer(s)



Investment rationale
All time high order book
With strong order inflows during the year, Siemens presently has an all time
high order book. The order backlog at the end of Sept'10 stood at INR135bn.
Order inflow for the current year is registered at INR120bn. Order book to
sales which in general has ranged from 1-1.2x, presently stands at 1.5x. In
the current year, the company received two mega orders namely Qatar
transmission (~INR24bn) and Torrent Power repeat order. With the execution
cycle of these projects closer to 24 months, we believe there would be significant
revenue growth for the next two years.

Buy Oil India: 2011 Mid-Cap pick: Antique

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Oil India Limited
Promising road ahead


Investment rationale
Subsidy burden to remain capped, improving realisations
We believe that subsidy burden of upstream companies will remain capped
despite sharp run up in oil prices as government will strive to raise diesel
prices more frequently to keep diesel under-recoveries under check, contrary
to what it has done in past. This will help improving realisations for upstream
companies in a rising oil price environment. In our view, with no diesel price
hike, OIL's net realisations are expected to improve by USD1/bbl for every
USD10/bbl increase in oil prices and by another USD4/bbl if government
raises diesel prices by INR2/litre.

11 Large Cap Ideas for 2011 from Antique

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20:11 Ideas for 2011 (Click on Company name for report)

11 Large Cap Ideas for 2011 from Antique (Click on Company name for report)

1 Reliance Industries  

2 TCS   


3 ITC   


4 ICICI Bank  


5 Larsen & Toubro 


6 Tata Motors  


7 Tata Steel  


8 Sun Pharmaceutical Ind 


9 Mahindra & Mahindra 


10 Power Grid Corp of India


11 Hindalco Industries  

Buy Hindalco Industries: 2011 Large Cap pick: Antique

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Hindalco Industries Limited
Growth for the ‘future’



Investment rationale
High visibility on India expansions
Expansion projects of Hindalco Industries Limited (HNDL) are on schedule,
thereby increasing its leverage to high margin Indian markets. Refining capacity
in India will double by FY12e while smelting capacity will grow by 140%.
Thus, the business portfolio will become more stable and aligned with end-toend
value chain transforming Hindalco to a different league.

Buy Power Grid (PGCIL) : 2011 Large Cap pick: Antique

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Power Grid Corp of India Limited
'Higher Orbit' of Capex



Investment rationale
Moving into higher orbit
PGCIL is moving into higher capex mode in order to meet the transmission
capacity requirements for the next two years and XIIth Five-Year Plan. Post its
successful IPO in FY08, the company has increased its average capital
expenditure (FY08-10) to INR84bn from INR36bn in the Xth Five-Year Plan.
PGCIL intends to increase its capital expenditure to INR120bn and INR150bn
by FY11e and FY12e, respectively. The equity infused via FPO and internal
accruals addresses the equity requirements in medium term.

Buy Mahindra & Mahindra (M&M): 2011 Large Cap pick: Antique

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Mahindra & Mahindra Limited
True Son of the Soil!


Investment rationale
Core businesses couldn’t be stronger
M&M's two "bread and butter" segments - UVs (45% of volumes) and tractors
(37% of volumes) - are relatively less competitive, which gives it a strong
pricing power. In UVs, it has consistently gained market share (currently at
52%) led by its strong brand image and unmatched grip in tier 2 & 3 cities.
Furthermore, the tractor industry is in a sweet spot due to enhanced focus on
farm credit, higher MSP prices, increasing commercial usage of tractors and
most importantly higher labor wages (attributable to NREGA). M&M is clearly
the biggest beneficiary from the same given its 42% market share in tractors.

Buy Tata Steel: 2011 Large Cap pick: Antique

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Tata Steel Limited
Crossing the Rubicon



Investment rationale
Indian operations: Focus on value-added volume growth
Indian operations of Tata Steel Limited (TSL) are in the midst of 3.05mtpa
crude steel expansion, increasing the capacity to 9.9mtpa by 3QFY12e. The
focus is on value-added products, which will maintain an EBITDA of USD350/
tonne despite initial lower cost raw material integration. The management has
accelerated the groundwork for the next expansion of 6mtpa in Orissa and
has set sights on FY14e for commissioning.

Buy Sun Pharmaceutical : 2011 Large Cap pick: Antique

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Sun Pharmaceutical Ind Limited
Holds further promise ...


Investment rationale
Sun Pharmaceutical Industries Limited (Sun Pharma) is a leading player in the
Indian pharma space. Sharp focus on cost control, impressive pipeline for the
US markets, strong foothold in the domestic market and a healthy balance
sheet are major growth drivers.

Buy Tata Motors: 2011 Large Cap pick: Antique

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Tata Motors Limited
Homegrown Multinational!


Investment rationale
JLR - The key driver!
JLR has witnessed a phenomenal turnaround and what's commendable is
the stellar performance looks sustainable. On the volumes front, we expect
JLR to maintain the strong momentum driven by the positive response to its
newer products coupled with the increasing demand for luxury cars from
emerging markets. The high-waiting period on some of its newer models (4-
6 weeks) would also reduce gradually as engine supply from Ford starts to
keep pace with the buoyancy in demand.

Buy Larsen & Toubro (L&T): 2011 Large Cap pick: Antique

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Larsen & Toubro Limited
Big Daddy



Investment rationale
Infrastructure spend for XIIth plan estimated to be ~USD1tn
Post the mid term appraisal of XIth plan, the infrastructure spend is expected
to be ~USD500-550bn. Initial estimates for XIIth plan is ~USD1tn and key
sectors are power, roads, ports and airports. Larsen with competence across
these sectors is poised to be one of the key beneficiaries. Further, the company
provides services for the oil & gas and process industry which would be the
other driver of the economy going forward.

Buy ICICI Bank: 2011 Large Cap pick: Antique

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ICICI Bank Limited
Remarkable franchise building

Investment rationale
We firmly believe that the consolidation phase of ICICI Bank is clearly
behind us. With a well expanded distribution network, substantially improved
liability franchise and ALM profile. ICICI Bank is extremely well positioned
to participate in the credit cycle. We expect earnings to grow at 30% CAGR
over FY10-12e on the back of improving margins, steady loan growth and
lower loan provisioning resulting in RoA improving to 1.6% by FY12e.

Buy ITC: 2011 Large Cap pick: Antique

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ITC Limited
Inflation proof



Investment rationale
Resilience of the cigarette business would aid outperformance
Over the next 12 months, when FMCG companies would be muddled between
input cost inflation and intensifying competitive scenario, ITC would be in a
better position with its dominating presence and strong pricing power in the
cigarettes division (accounting for 84% of its total profits). ITC has consistently
demonstrated its strong pricing power in the past in a scenario of steep hikes
in cigarette duties and restrictions on cigarette consumption.