India Oil & Gas, Chemicals: Spotlight on Refining :: JP Morgan

Please Share:: India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��


India Oil & Gas, Chemicals
Feedstock- Vol XXIV: Spotlight on Refining


• Spotlight on refining: Refining margins have picked up, averaging
$5.37/bbl since December – building increasing optimism for a sustained
earnings boost post a difficult 18 months. In this note, we examine
trends and implications in the refining space.

Tulip Telecom: Catapults to world’s third largest data centre :: ICICI Sec

Please Share:: India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��


Tulip Telecom: Catapults to world’s third largest data centre 
Tulip Telecom announced the acquisition of Bangalore-based SADA IT
Parks Pvt Ltd that owns a data centre facility for | 230 crore through its
100% subsidiary Tulip Data Centre Pvt Ltd. The data centre is spread
across 9 lakh sq ft. Tulip claims a revenue potential of | 1000 crore with
50% EBITDA margin with peak utilisation level expected to be achieved
after three years of operation. Tulip would be required to invest | 900
crore (inclusive of | 230 crore already spent to acquire the facility) in the
facility. Of this, it expects to invest 60% in the first year itself and the
rest in two subsequent years. The business would provide a substantial
and stable revenue stream once full capacity comes on stream, as the
contracts span over five to seven years. However, in the initial phase, it
would be a drag on the profitability as the management expects the
venture to post cash loss of | 50-70 crore in the first year of operation.

Citi: Tulip Telecom : Data Centre Acquisition:

Please Share:: India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��


Tulip Telecom Ltd (TULP.BO)
Alert: Data Centre Acquisition: Ramp-up Will Take Time but Revs to Provide Stability


Acquisition provides additional revenue stream — Tulip today announced
acquisition of a data centre facility in Begaluru (Bangalore) for Rs2.3bn. The
consideration is for a potential 900k sq ft. of space (12x the largest running facility
in the country currently) taking its combined space to ~1m sq ft. It claims annual
revenue potential of Rs10bn (40% of current revenues) with 50% EBITDA margins
at peak utilisation level (90%), which it expects to touch in the next 3 years.
Funding details — Apart from the Rs2.3bn cash outflow, Tulip will have to invest
an additional Rs6.3bn over the next 3 years (Rs600m to make it operational; 60%
of Rs6.3bn in the first year). The company plans to bring in an equity partner at the
subsidiary level to keep debt/equity at ~1.25x. However assuming full debt
funding, FY12E Net debt/EBITDA deteriorates to 1.7x (0.8x currently); high though
not uncomfortable.

Mastek -Restructuring underway , ICICI Securities

Please Share:: India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��


Mastek: Restructuring underway 
Though Mastek reported in-line numbers, we believe re-structuring is
underway. Sequentially, the absolute headcount declined by 242 while
employee costs were trimmed leading to a 4.7 percentage points (pp)
improvement in gross margins. Other notables were travel &
conveyance expenses that declined 0.9 pp to 4% of Q2FY11 revenues
vs. 4.9% in Q1FY11. Operationally, a conscious effort seems to be
underway to manage cost. However, apprehensions still exist and a
meaningful change in Mastek’s outlook necessitates persistent cost
rationalisation and sustainable  revenue and bookings growth.
Consequently, we have changed our rating to REDUCE from SELL
earlier, with | 160 target price.

Petronet LNG (PLNG.BO) Blockbuster Quarter; Raise TP to Rs150:: Citi

Please Share:: India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��


Petronet LNG (PLNG.BO)
Blockbuster Quarter; Raise TP to Rs150
 Blockbuster quarter — PLNG reported a PAT of Rs1.71bn, up 105% yoy and
30% qoq and well ahead of our and consensus estimates. Profits were boosted by
a sharp increase in regas volumes to 111 TBTU (32% yoy, 12% qoq), as lower
availability of domestic gas led to an increase in LNG imports in the country. We
raise our TP to Rs150 from Rs135 on the back of our higher near-term volume
forecasts and reiterate our Buy rating.

Jaiprakash Ventures Ltd (JPVL) Results above estimates on higher income:: ICICI Sec

Please Share:: India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��


JPVL: Results above estimates on higher income, sale of VERs… 

Jaiprakash Ventures Ltd (JPVL) reported its Q3FY11 results above our
estimates on account of higher other operating income (6x YoY) and sales
of VERs. Core sales (by sale of electricity) was reported at  | 129 crore
(growth of 13.2% YoY) on account of higher generation (671 MUs vs. 512
MUs units in Q3FY10). EBITDA came in at | 156.3 crore (growth of 61.6%
YoY). However, core EBITDA (excluding other operating income and
VERs) stood at | 104 crore (growth of only 7.4% YoY) on account of
higher O&M and other expenditure.  Interest cost for the company
increased to  | 104 crore (106% YoY) on account of securitisation of
receivables of its operating projects (Baspa-II and Vishnuprayag power
plants). The company reported PAT of | 22.8 crore, up 35.1% (YoY).

Infotech Enterprises – 3QFY2011 Result Update- Angel Broking

Please Share:: India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��

Infotech Enterprises – 3QFY2011 Result Update

Angel Broking recommend an Accumulate on Infotech Enterprises with a Target Price of Rs190

For 3QFY2011, Infotech Enterprises (IEL) posted a mixed performance. The

company outperformed our revenue expectation but disappointed on the

operating front. The key highlight of the result was that IEL managed to garner

the increase in offshore price points by 3–5% across its top three clients i.e.,

United Technology, Tom Tom and Bombardier. Amongst them, one of the clients

also gave a price increase of 2% onsite. Going forward, IEL plans to hire 500

freshers and have close to 600 open billable positions likely to be filled by

laterals. We expect IEL to post a 24% CAGR in revenue on the back of organic as

well as inorganic growth (i.e. Daxcon and Wellsco integration). Valuing the

company at 12x FY2012E EPS of `15.8, we recommend Accumulate.

Unichem Laboratories- Incremental overheads put extra pressure:: ICICI Securities

Please Share:: India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��


Unichem Laboratories- Incremental overheads put extra pressure… 


Unichem’s Q3FY11 numbers were below our expectations. Total
revenues grew 14.1% YoY to  | 197.1 crore, almost in line with our
expectation of | 201 crore. EBITDA margins sharply declined ~ 660 bps
against our expectation of ~250 bps dip. This was mainly due to higher
sales & marketing expenses (up ~| 9 crore YoY), incremental sample
cost and change in the product mix. Niche generics, the wholly-owned
subsidiary of the company, recorded sales of £2.17 million and net loss
of £0.38 million. We believe most of the incremental sales & marketing
expenses during the quarter were one-off in kind although we have
some concern over the performance  of antibiotic drug Ampoxin. We
expect ULL’s profits to normalise from Q4FY11 onwards. We have
revised our target price on the stock to | 227 with a BUY rating.

Development Credit Bank: Reaping benefits from strategic focus : ICICI Sec

Please Share:: India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��


Development Credit Bank: Reaping benefits from strategic focus… 
DCB remains our top sectoral pick due to continuous improvement in its
operating metrics. The business mix posted a strong 26% YoY (3% QoQ)
jump to | 9606 crore, NII grew 51% YoY to | 49.3 crore (I-direct estimate:
| 49.5 crore) while provisions were scaled down to  |  9.4 crore from
historic highs of | 14-24 crore this quarter. This led to a stellar 70% QoQ
jump in profit to | 8.2 crore in Q3FY11. NIM was maintained sequentially
at 3.13%. However, we expect a 25-30 bps decline next quarter due to
rising cost of funds across the industry. The asset quality improved
sequentially (NNPA ratio improved to 1.3% from 1.9% in Q2FY11). This
indicates a relief from high credit costs crushing profits. We expect a 27%
CAGR in NII over FY10-13E and 96% CAGR in PAT over FY11E-13E.

ICICI Securities:: Ruchi Soya Industries :Benefits from enhanced capacity utilisation

Please Share:: India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��

Ruchi Soya Industries :Benefits from enhanced capacity utilisation… 
Ruchi Soya Industries Ltd (RSIL) reported a good set of Q3FY11
numbers. The topline increased 21% YoY and sequentially to | 4,628.4
crore. EBITDA margins stood at 4.1% (highest level in last nine
quarters), up 185 bps YoY and 27 bps sequentially on the back of
enhanced realisations (due to increased branded sales), reduced trading
and better capacity utilisation levels. Consequently, PAT increased
58.5% YoY. Sequentially, PAT remained flat at | 63.8 crore in Q3FY11 as
against | 63.6 crore in Q2FY11 mainly on account of increased interest
outgo (which was substantially higher due to increased working capital
requirements led by higher capacity utilisation).

Federal Bank - Lower growth warrants target price revision :ICICI Securities

Please Share:: India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��


Lower growth warrants target price revision 
Shyam Srinivasan (the new CEO of Federal Bank), is currently focusing
on technology upgradation and process implementation for entering a
new phase of growth from FY12E onwards. Consequently, the growth
estimates for FY11E were curtailed compared to our earlier projections.
Therefore, we have revised our estimates after our recent interaction
with the management, which entails lowering our target price to | 501.

LIC Housing Finance - Valuations comfortable; upgrade to BUY:: Emkay

Please Share:: India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��

LIC Housing Finance

Valuations comfortable; upgrade to BUY

BUY

CMP: Rs 174                                        Target Price: Rs 210

---

n     Recent increases in the lending rates to take care of NIMs atleast for next two quarters. We are already building in 20bps pressure in spreads/NIMs next year

n     Developers’ loan portfolio only on pause now, to start disbursing fresh loans from Q4FY11 onwards. The proportion of developers’ loan to remain steady at 11% of total

n     Developers’ loans portfolio NPAs are minimal. The loans under investigation at Rs3.9bn which are all performing assets

n     Valuations at 1.7x/1.4x FY11E/FY12E ABV – valuations attractive looking at 22% avg RoEs despite higher provisions and building lower NIMs. Upgrade to BUY with TP of Rs210

TCS: Raising estimates, price target:: ICICI Securities

Please Share:: India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��


TCS: Raising estimates, price target… 
While historically Infosys was the preferred portfolio pick among Indian
outsourcers due to known reasons, six quarters of relative
outperformance, by TCS could alter that view (Figure 1). Further, TCS,
to a great extent, appears a cohesive unit under Chandra. Finally,
though a lack of ADR could hinder our belief, we believe portfolio
buying led by preference shift within Tier I vendors, could lead to a rerating of the stock. Consequently, we are raising our FY12E and FY13E
EPS estimates and our price target to | 1280 from | 1210 earlier.

Container Corporation of India – 3QFY2011 Result Update - Angel Broking

Please Share:: India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��

Container Corporation of India  – 3QFY2011 Result Update

Angel Broking maintains Reduce on Container Corporation of India with a Target Price of Rs. 1,194.

Container Corporation’s (Concor) 3QFY11 results were marginally ahead of our

expectations on account of the strong operating performance in the Exim

segment. The domestic segment recorded moderate growth in volumes due to the

17-day Gujjar agitation and hike in domestic haulage charges. Management has

revised its Exim volume growth guidance for FY11 to 9% yoy (12% earlier), which

we believe is challenging. The hike in Exim haulage charges will also impact

volume growth negatively going forward. We maintain a Reduce on the stock.

Yes Bank Q3FY1; Slower growth restricts NIMs contraction; Target: Rs 300:: Emkay

Please Share:: India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��

Yes Bank

Slower growth restricts NIMs contraction

ACCUMULATE

CMP: Rs 273                                       Target Price: Rs 300

---

n     Yes Bank’s Q3FY11 results were inline with expectations with NII at Rs3.2bn and PAT at Rs1.9bn

n     Lower than expected 20bps contraction in NIMs was a positive surprise. As the asset repricing will continue for next two quarters, pressure on NIMs will be minimal

n     Yes Bank consciously decelerated loan book growth to 2.6% qoq due to volatile rates. Asset quality maintained at 0.2% gross and 0.1% net NPAs

n     Valuations attractive at 2.5x FY11E/2.0x FY12E ABV. Upgrade to ACCUMULATE as the recent correction in the stock price leaves 10% upside to our target price of Rs300

Container Corporation of India: Positive surprise from Exim segment:: ICICI Sec

Please Share:: India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��

Container Corporation of India

Positive surprise from Exim segment…
Container Corporation’s (Concor) Q3FY11 numbers were better than
our estimates on the back of better-than-expected Exim volumes. Exim
volumes registered healthy growth of 14.3% YoY. However, the
performance of the domestic segment was muted as it reported only a
marginal growth of 1.7% YoY. The company recorded net sales of |
971.13 crore, growth of 9.8% YoY and 2.9% QoQ in Q3FY11. The
EBITDA margin for Q3FY11 has increased by 10 bps YoY and 120 bps
QoQ to 28.9%, primarily on the back of a reduction in empty running.
Net profit increased by 13.9% YoY to | 228.48 crore.

SAIL- Higher raw material and wage cost dents margins : ICICI Securities

Please Share:: India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��


Raw material cost push impacts growth…
SAIL’s Q3FY11 results came below our estimates. The topline almost
came in line with our estimates at | 11312 crore against the expected |
11749 crore (up ~14% YoY and ~7% QoQ) aided by saleable steel
volume growth at ~ 13% QoQ at ~3.3 million tonnes (MT). EBITDA
margins remained under pressure (down ~ 240 bps QoQ and ~1020 bps
YoY) due to a rise in contractual coking coal prices by ~ 60% YoY and
higher power cost due to rise in fuel prices. PAT margins also remained
muted QoQ and declined considerably (down ~ 33% YoY) due to lower
forex gains (declined ~  |120 crore QoQ). We believe the delay in
capacity expansion would affect the volume growth, going ahead. We
expect margins to remain under pressure as raw material prices are
expected to harden from the present levels, and, hence will impact
margins. Hence, we have revised our target price to  |168 per share
taking into consideration the above-mentioned factors.

Infotech's results were a mixed bag : Kotak Securities

Please Share:: India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��


INFOTECH ENTERPRISES LTD (IEL)
PRICE: RS.170
RECOMMENDATION: ACCUMULATE
TARGET PRICE: RS.197
FY12E P/E: 10.5X

Infotech's results were a mixed bag. While revenues were higher than what
we had expected, EBIDTA margins once again disappointed. Consequently,
operating profits for 3QFY11 were lower v/s our estimates. EMI volumes
were up by 5.2% and N&CE reported a 6.5% organic growth, which is
encouraging. Ramp up of existing projects and new project initiations
helped, we opine. What is encouraging is the fact that, the Top 3 client have
given a 3-5% billing rate increase WEF 4Q, which should help margins.

South Indian Bank Q3FY11- Strong results; upgrade to BUY; Target: Rs 30: Emkay

Please Share:: India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��

South Indian Bank

Strong results; upgrade to BUY

BUY

CMP: Rs 22                                       Target Price: Rs 30

---

n     SIB’s Q3FY11 net profit at Rs753mn was better than consensus estimates (in line with ours) driven by strong 38.3%yoy growth in NII

n     The NII growth was led by a strong 6.4%qoq growth in advances and stable NIMs. Some part of the growth was back ended during the quarter

n     The asset quality remained stable with GNPA at 1.3% and NNPA at 0.4%. Provision cover stood strong at 71%.

n     We remain extremely positive with strong RoEs + robust Tier I + clean asset quality. Recent correction provides good entry point. Upgrade to BUY. High gold loan portfolio a key risk

Emkay:: Buy Kajaria Ceramics - Results ahead of estimates

Please Share:: India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��

Kajaria Ceramics

Results ahead of estimates

BUY

CMP: Rs 74                                       Target Price: Rs 100

---

n     Results ahead of estimates with 41% increase in revenues  to Rs 2.5 bn and 113% PAT growth to Rs 176 mn   

n     Strong demand supported higher trading since purchase of traded goods (% of sales) increased from 37% to 41%

n     Entered into MOU with Turkey based company –Eczasibasi, for exclusive distribution of its products for 5 years  

n     Upgrade FY11E estimates by 8% to Rs 8.1 on strong Q3FY11 results, maintain FY12E estimates at Rs 10, maintain BUY

Torrent Pharma Q3FY11 Result Update; Buy; Target: Rs 650:: Emkay

Please Share:: India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��

Torrent Pharma

In-line Results; Maintain Buy

BUY

CMP: Rs 583                                       Target Price: Rs 650

---

n     Revenue growth in-line with our estimates on account of 17% increase in domestic formulations and 19% growth in the international business

n     EBITDA margins declined by 286bps YoY (as estimated) on account of 140bps contraction in gross margins, higher employee cost and other expenses

n     PBT in line with estimates. Higher than expected rise in interest cost and higher tax provisioning impacted PAT (Rs769mn vs. est. of Rs823mn)

n     Maintain earnings and Buy rating with a target price of Rs650

FII & DII trading activity on NSE and BSE as on 20-Jan-2011

Please Share:: India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��

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 20-Jan-2011.

FII trading activity on NSE and BSE in Capital Market Segment(In Rs. Crores) Category Date Buy Value Sell Value Net Value FII 20-Jan-2011 2723.52 3667.43 -943.91

 

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 20-Jan-2011.

DII trading activity on NSE and BSE in Capital Market Segment(In Rs. Crores) Category Date Buy Value Sell Value Net Value DII 20-Jan-2011 1432.83 1176.51 256.32

 

--

FII DERIVATIVES STATISTICS FOR 20-Jan-2011

Please Share:: India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��

FII DERIVATIVES STATISTICS FOR 20-Jan-2011
	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	81644	2313.06	110168	3126.95	431966	12292.61	-813.89
INDEX OPTIONS	294321	8358.67	295537	8414.64	1805623	51563.56	-55.97
STOCK FUTURES	157033	4191.59	145935	3857.88	1318764	34123.45	333.71
STOCK OPTIONS	13266	392.35	15320	451.28	24461	686.68	-58.93
						Total	-595.08

 

 

News Updates by Kotak Securities: 20 Jan, 2011

Please Share:: India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��


Economy News
4 Prime Minister Manmohan Singh shuffled his team on Wednesday, in a
modest exercise focused on economic ministries that did not involve any
dismissals, although a few ministers were downsized. Three were
elevated to cabinet rank. Prime Minister said "This is a minor reshuffle.
We will do a major reshuffle after the budgt session". (ET)

Buy HT Media – 3QFY2011 Result Update - Angel Broking

Please Share:: India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��

HT Media – 3QFY2011 Result Update

Angel Broking maintains Buy on HT Media with a Target Price of Rs175.

We have revised our FY2011 estimates downwards: 1) revised revenue estimates

by 1.5% to factor in sequentially lower advertisement revenue from Hindi print

and lower revenue traction from the Burda JV; 2) revised earnings estimates by

7.6% to factor in higher newsprint cost and high operational expenses on account

of expansion of the company’s print business. We highlight that yoy comparison

of Hindi print business is not completely valid as Hindi business (HMVL) was a

part of HT Media (HTML) in 3QFY2010. We maintain a Buy on the stock.