04 January 2011

IPO Grey Market premium: C. Mahendra, Midvalley entertainment, Shekhawati Poly: Jan 4, 11

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Company Name
Offer Price
Premium
(Rs.)
(Rs.)
Shekhawati Poly Yarn
30 (Fixed)
1 to 2
C. Mahendra Export
95 to 110
3 to 4
Midvalley entertainment
64 to 70
6 to 7

ENAM New Year Picks 2011

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CLICK on company name for detailed report


ENAM New Year Picks 2011
Company
 CMP (Rs)
Target (Rs)
Upside %
308
385
25%
97
125
29%
92
127
38%
52
66
27%
282
355
26%
217
279
28%
81
99
22%
364
485
33%
74
115
55%


ENAM New Year Picks 2011 - CLICK on company name (above) for detailed report
  1. Coal India
  2. Powergrid
  3. Elgi equipments
  4. Prism Cement
  5. Whirlpool
  6. Hitachi Home
  7. Redington
  8. Pantaloon Retail
  9. Sterlite Tech




Sterlite Tech 55% Upside ENAM 2011 TOP Pick

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Sterlite Tech 55% Upside ENAM 2011 TOP Pick 


Long Term Intact
● Sterlite Technologies Ltd (STL) is a play on the high‐growth Telecom and Power sectors in emerging
markets. Parentage of Sterlite Group lends strength to STL. The Group, among the lowest cost metal
producers globally, has an enviable track record in executing large projects continuously, in a timely
manner.

Pantaloon Retail 33% Upside ENAM 2011 TOP Pick

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Pantaloon Retail  33% Upside ENAM 2011 TOP Pick 



Aggressive roll out plans /Financial Restructuring
● Aggressive rollout plans, ~ 2 mn sq ft p.a. (currently 12 mn sq ft) over next 3 years, along with
Same‐ store‐sales growth will drive revenue’s by ~22% p.a. over the next 2 years. Moreover operating
cash flows are sufficient to fund this expansion.

Redington 22% Upside ENAM 2011 TOP Pick

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Redington 22% Upside ENAM 2011 TOP Pick 

Smart growth driven by BLACKBERRY
● In India, demand continues to remain strong driven by corporate capex 3G investments by telecom
companies from H2FY11 onwards would add to the momentum. Smart phones sales continue to be
strong.

Hitachi Home 28% Upside ENAM 2011 TOP Pick

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Hitachi Home 28% Upside ENAM 2011 TOP Pick 



Direct play on Indian consumption
● Hitachi Home (India) is a prominent player in the premium air conditioning segment. The company has
two plants in Jammu and Kadi with a total capacity of 4 lakh units.

Whirlpool 26% Upside ENAM 2011 TOP Pick

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Whirlpool 26% Upside ENAM 2011 TOP Pick 


Direct play on Indian consumption
● Whirlpool is a direct play on Indian consumption industry. The company has been able to straddle
across segments from refrigerators and washing machines to air‐ conditioners, microwaves and water
purifiers. Focusing on both the mass and the premium segments gives it an edge over the other players.

Prism Cement 27% Upside ENAM 2011 TOP Pick

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Prism Cement 27% Upside ENAM 2011 TOP Pick


Going up the value chain
● India’s leading integrated building material player with a robust business model generating FCF and
sustainable competitive advantage. Presence in Central & Eastern Region where cement demand has
grown by 19% & 17.5% respectively vs. Industry growth of 10.6% in FY 2010. Robust demand
& superior realization to benefit from the next cement up‐cycle by leveraging on its recently concluded
capex taking its capacity to 6.6 mn tonnes.

Elgi equipments 38% Upside ENAM 2011 TOP Pick

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Elgi equipments 38% Upside ENAM 2011 TOP Pick 

A proxy to Industrial capex
● Elgi is a leading manufacturer of compressors catering to industries like mining, power, transport and
textiles. It is also engaged in manufacturing of automobile service station equipments. The compressor
industry is an oligopoly industry with only four players‐Elgi, Kirloskar Pneumatic, Atlas Copco and
Ingersoll‐Rand. The industry has huge entry barriers in the form of technology.

Powergrid 29% Upside ENAM 2011 TOP Pick

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Powergrid  29% Upside ENAM 2011 TOP Pick


RoE expansion through merchant power sales
● PGCIL captures the merchant power opportunity through sale of its spare capacity on a short‐term
open access (ST) basis. It charges on an average ~Rs 0.16/kWh and retains 25% of the revenue and there
are NO RoE caps. With an expected increase in merchant power sales, this would aid PGCIL’s ROE
expansion. In FY10 ST contributed ~100bps to core RoE.

Coal India 25% Upside ENAM 2011 TOP Pick

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Coal India 25% Upside ENAM 2011 TOP Pick


Excellent resource play, spotlight on washed coal
● CIL is undergoing a metamorphosis from a mere production driven company to a production plus
profitability focused mining behemoth. It is setting up 111 mn tonnes of new washing capacity for its
existing production and ~90% of incremental production will have dedicated washeries.
● Since washed coal realization is ~2.3x that of raw coal, we expect huge EBITDA margin expansion
(45% in FY17 vs. 27% in FY10) going forward. Led by better realizations and a volume CAGR of 6%,
we expect EBITDA and PAT to grow at a CAGR of 23% and 22% respectively by FY17.

FII & DII trading activity on NSE and BSE as on 04-Jan-2011

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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 04-Jan-2011.
FII trading activity on NSE and BSE in Capital Market Segment(In Rs. Crores)
CategoryDateBuy ValueSell ValueNet Value
FII04-Jan-20113381.892664.13717.76
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 04-Jan-2011.
DII trading activity on NSE and BSE in Capital Market Segment(In Rs. Crores)
CategoryDateBuy ValueSell ValueNet Value
DII04-Jan-20111474.071965.64-491.57
 
 

FII DERIVATIVES STATISTICS FOR 04-Jan-2011

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FII DERIVATIVES STATISTICS FOR 04-Jan-2011 
 BUYSELLOPEN INTEREST AT THE END OF THE DAY 
 No. of contractsAmt in CroresNo. of contractsAmt in CroresNo. of contractsAmt in Crores 
INDEX FUTURES357541100.1732201991.4342206012921.22108.74
INDEX OPTIONS1292473934.271250413802.26116548435629.77132.02
STOCK FUTURES31281942.87472181429.67124228635071.47-486.80
STOCK OPTIONS10416329.3610497330.3110980336.06-0.95
      Total-246.99

JP Morgan: Sensex at 24K in 2011; Top Buy and Sell

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Asia Analyst Trading List
Action: Add Mahindra & Mahindra as Long and Bajaj Auto as Short


Kalpana Morparia, CEO, JP Morgan is expecting the Sensex to be at 24,000 by the year-end.



• Action: Add Mahindra & Mahindra as Long and Bajaj Auto as Short
• Time horizon: < 3 months
• Rationale:

India Market Overview: Jan 4, 2011

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* INDICES: Sensex 20,498(-62), Nifty 6,146(-11), CNXMCAP 8,900(-18).
* VOLUMES: NSE $3.19bn(14,357), BSE $0.96bn(4,330cr), F&O $22.26bn(1,00,087cr)
* AVERAGE 10 DAYS MKT VOL: NSE $2.71bn (11,499) BSE $0.77bn (3,476)
                           F&O $23.82bn(1,07,063).
* SECTORS: REALTY -1.12%  METAL -0.38%   BANKEX -2.48%   POWER  +0.10%
           AUTO -0.55%  CAP.GOODS -0.24% PHARMA +0.87%  IT +0.05%.
* ADV-DEC RATIO : BSE500 Index 217 Advances & 282 Declines.
* INDEX GAINERS : HLL, RIL IND, ITC & RELINFRA +2%, J.STEEL & NTPC -1%.
* INDEX LOSERS  : I.BANK, B.AUTO, SBI & RCOM -3%, H.BANK, TCS, DLF, T.STEEL,
                  BHARTIARTL & HINDALCO -1%.

* TOP 5 VOLUMES : SBI, T.STEEL, RIL IND, I.BANK & INFOSYS.

* MAJOR BLOCKS  : 1) RELIGARE ENT           13,23,128 @  456.00,
                  2) MARUTI                  2,00,000 @ 1410.00,
                  3) PRIME FOCUS            32,50,000 @   69.25,
                  4) IDFC                    6,00,000 @  183.90,
                  5) MOUNT EVEREST          15,00,000 @   87.50.

* BSE500 GAINERS: BATA IND +8%, KWALITY DAIRY +7%, PENINSULA LAND &
                  KIRLOSKAR BRO +6%, AREVA T&D, UTV & TECH MAHINDRA +5%,
                  DB REALTY, AQUA LOGIS & ONMOBIE +4%.

* BSE500 LOSERS : DEWAN HOUS -6%, GLODYNE, SHREE ASHTAVINAY, KGL, PRESTIGE ESTA
                  CC LTD, UTTAM GALVA & ALL BANK -4%, INDUSIND BNK & I.BANK -3%

* FII INVESTMENT FROM 1st JAN 2010 to 31st DEC 2010: $29.32bn.