Media: Demystifying IRS Q4 2010: Gains across coverage universe : Kotak Sec

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Media
India
Demystifying IRS Q4 2010: Gains across coverage universe. Our analysis of IRS (Indian
Readership Survey) Q4 2010 reveals (1) strong growth in readership of Hindi dailies and
modest increase in English dailies, (2) continued gains for Hindustan Times (HT Media’s
English daily) in Mumbai, (3) strong gains for Hindustan (HT’s Hindi daily) across key markets
and (4) robust gains for DBCL and steady JAGP performance. Reiterated positive view on
Hindi print stocks given (1) rising readership and (2) consolidation potential; upgrade HMVL
to BUY (TP: Rs200) post recent under-performance due to weak 3QFY11.

India Morning Meeting Notes | 15 March 2011 :The Royal Bank of Scotland

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News headlines
Oil & Gas
􀀟 SEBI says Cairn-Vedanta deal not yet cleared; issue still under process (Economic
Times)
􀀟 ONGC Videsh loses bid to buy stake in Angola oil block (Economic Times)
Banks
􀀟 Tight liquidity forces banks to borrow more from RBI (Economic Times)
􀀟 SBI CMD, OP Bhatt says merger of subsidiary units a time taking process (Economic
Times)
Pharma
􀀟 Govt will protect interests of drug industry: Scindia (Economic Times)
Commodity
􀀟 Experts urge authorities to fine tune mining policy for adoption of modern mining tech
(Economic Times)
􀀟 Jharkhand to take legal recourse against Tata Steel (Economic Times)
􀀟 15 disused Cobalt-60 isotopes stolen from SAIL in Jan (Economic Times)
􀀟 Bumpy road ahead for Posco’s steel project (Economic Times)
􀀟 SAIL begins process of developing 7 MT Chiria mines (Economic Times)
Consumer
􀀟 Unilever CEO hits out at Nielsen, questions its data accuracy (Economic Times)
􀀟 Canned coconut water likely to turn dearer (Economic Times)
􀀟 Consumer durable retailers see no supply constraints (Business Standard)
IT & Telecom
􀀟 Nokia testing servers for corporate email access (Economic Times)
􀀟 Idea-handygo launch Re 1 per min IVR service (Economic Times)
􀀟 Realty & telecom most corruption-prone sectors in India: KPMG (Economic Times)
􀀟 Vodafone launches Wi-Fi device in India for Rs5500 (Economic Times)
􀀟 Bharti airtel to offer broadband TV for Rs 99 (Economic Times)
Power, engineering & infrastructure
􀀟 India's N-plan may take a hit; equipment suppliers not worried (Economic Times)
􀀟 GE to invest $200mn to set up manufacturing facility (Economic Times)
􀀟 Suzlon promoters sell shares worth Rs1.78bn (Business Standard)
Automobiles
􀀟 Honda to up prices from Apr 1, Ford, GM likely to follow soon (Economic Times)
􀀟 Maruti Suzuki inks MoU with Society of Automotive Engineers (Economic Times)
􀀟 Honda, Hyundai, Volkswagen come under CCI scanner (Economic Times)
􀀟 Honda Siel Cars to increase prices by 2-3% (Economic Times)
􀀟 Honda postpones preview of small car Brio in India (Economic Times)

Edelweiss India Conference 2011 - Post Conference Notes - Day 2

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We present our key takeaways of day 2 of the Edelweiss India Conference 2011: India Discovers Africa- Building bridges, broadening horizons. The two-day event brought together about 70 companies and enabled over 2,000 interactions through one-on-one and group meetings.

Apart from the regular corporate-company interactions, a key feature of this year's conference was the panel discussions on opportunities for various industry segments in Africa. In the panel discussion on the telecom sector, one of the key findings was the vast opportunity that Africa offers given its favorable demographics and rising income levels. Participants also pointed out that operators can also cut costs by sharing infrastructure, thereby passing on the benefits to consumers. For the pharma sector, panelists pointed out that Africa presents a strong and growing opportunity with strong domestic consumption growth, branded generic nature of the market, and various government initiatives to improve the healthcare coverage. Interestingly, since 50-60% of the market is import dependent, many Indian companies are making serious investments in these markets. Also, every market in Africa seemed to present its own set of challenges in terms of entry barriers and time to receive approvals.

Through corporate-company interactions, we gained substantial valuable insights. Within the capital goods sector, corporates were concerned about the delay in project awards in the power equipment space. Clients, in their view, were also taking more time to finalize projects. In the oil & gas sector, investors believe that rising crude prices will impact demand. Also, investors were of the opinion that post the Japan earthquake, refining margins could show an uptrend over the medium term. Within the auto sector, most investors were concerned about the macro-environment and its impact on margins was actively debated. Interactions with corporates in the real estate sector indicate that pace of approvals from government was slow. Lack of funding also seemed to be an issue, although corporates were hopeful that it would pick up over the medium term. Although demand was sluggish in January in some key real estate markets such as Mumbai, some recovery was posted in late February and March. Overall, the mood was that of cautious optimism.

Apart from providing  several opportunities to participants to discover the potential of cross-border trade and investments in Africa, the conference was also successful in facilitating a robust platform for investors to interact with corporates.

Economy: February WPI inflation: Waiting for Godot?: Kotak Sec

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Economy
Inflation
February WPI inflation: Waiting for Godot? February inflation numbers (again)
surprised on the upside as it increased to 8.31% from 8.23% in January. Consensus was
expecting a downward move to 7.8%. The Street has been expecting a downward trend
to emerge for quite a few months now but factors for the same have remained elusive.
This month’s surprise came from the manufactured products price index which saw
1.31% mom rise. Manufactured products ex-food inflation came in at 6.09%, indicative
that demand side pressures in the economy remain strong while global commodity prices
tend to be passed onto domestic inflation. The primary articles index saw a sequential
decline with food prices coming down significantly through the month. The rise in fuel
and power index came from the petrol price hike of Rs2.54/litre on January 16 as the full
effect of the price rise came into the index. Incidentally, the Headline WPI inflation for
December was revised up sharply to 9.41% from the earlier 8.43%.

Jay Shree Tea & Industries Limited:: Target Rs. 192 :: SKP Securities

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Company Profile
Incorporated on the October 27, 1945 Jay Shree Tea & Industries Ltd (JTIL), a well diversified
conglomerate of B.K. Birla Group of Companies, acquired a growing number of tea estates in
both North and South India and initiated innovative, intensive and integrated field development
work on all fronts. JTIL has adopted a marketing strategy to provide Garden Fresh Tea to all its
clients. Besides tea, JTIL manufactures Single Super phosphate and Sulphuric Acid. The
company is also engaged in Warehousing activities at Calcutta and Kochi. It has also developed
prestigious residential and commercial complexes at Calcutta and Bangalore. JTIL has under its
fold 22 tea estates including two estates in its subsidiary spread all over India and manufactures
around 15 million Kgs of tea per annum. Total area under tea is around 8000 Hectares. JTIL
produces around 10% of total Darjeeling tea produced in the country.
Investment Rationale
Increase in yields
Increase its tea yields through better agricultural practices resulting in
substantially lowering raw material and miscellaneous expenses per unit
of sales.
Treasury management resulting in lower interest cost
JTIL has successfully invested surplus funds in treasury instruments.
The returns from these investments have helped the company to better
manage its interest costs.
Interest cost of the company in FY10 decreased by approximately 26%.
Active treasury management by the company has helped to keep its
interest cost low which would otherwise be at higher levels.
Inorganic growth through acquisitions
Focused on increasing its revenues by maximizing its quantity
produced. The company has acquired estates in Rwanda and Uganda to
the tune of USD 6.5 million for the control of 11.3 million kgs in East
Africa.
Assam tea is a good blend with Ugandan Tea which shall augur well for
the shareholders in the long run.
Improved realization of export prices
Indian tea is widely sought in the export market. India will be facing a
100 mn kgs. deficit in tea production at the starting of the new season in
April leading to increase in export prices.
Acquisition of MP Chini Industries
Forayed into sugar industry with the acquisition of MP Chini Industries
This is likely to hedge the revenue streams of JTIL by diversifying its
existing portfolio which was earlier focused on tea and fertilizers.


Outlook & Recommendation
We expect bouyant tea prices in near term. Moreover, recent rally in JTIL
prices seems to have factored in most of this bouyancy. JTIL holds a leading
position in tea industry.
Stock is currently trading at a PE of 4.61x FY12E and 3.85x FY13E EPS.
We recommend HOLD rating on the stock with a 18 months target price
of Rs 192, at 4.5x FY13E earnings, giving it an upside of 17% from the
current levels.

Fertilizer Policy Update: Asit C Mehta

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Fertilizer Policy Update
Department of fertilizers (DOF) has announced revised NBS rates for FY12,
wherein the NBS rates have been increased on an average by 37% for all complex
fertilizers compared to FY11 rates. Subsidy rates per Kg for primary nutrients, i.e.
N (Nitrogen), P (Phosphate) and K (Potash) is increased by 18%, 12% and 1%
respectively. While, for S (Sulphur) is lowered by 5%.

IIP growth at 3.7%; policy rates may remain unchanged :: Centrum

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IIP growth at 3.7%; policy rates may remain unchanged
Following a sharp dip, the manufacturing sector growth improved 3.3% in Jan
2011 on the back of a stronger sequential rise of 3.3%. Overall IIP growth,
inclusive of manufacturing, mining and electricity at 3.7% YoY was backed by
stronger support from electricity generation which grew 10.5% with mining at
1.6% and manufacturing at 3.3%. While capital goods sector contracted 18.6%
YoY in Jan 2011 it was more than compensated by stronger performance from
consumer goods at 11.3%. Metal products, machinery, transport equipment and
other manufacturing segments grew at -3.4%. The small rise from Dec 2010 lows in
IIP growth is in line with our view that the worst over, but it is unlikely to be
substantially better going forward. We believe the less than long term average
growth and recent easing of food inflation will prompt RBI to keep policy rates
unchanged in its March 2011 monetary policy announcement.

IndusInd Bank: Potent mix deserving of premium; BUY : Kotak Sec

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IndusInd Bank (IIB)
Banks/Financial Institutions
Potent mix deserving of premium; BUY. We like IndusInd Bank’s business model,
with its complementary mix of high-yielding retail assets and fast-growing corporate
book. The new management is focusing on profitability, consistency and balanced
growth. We expect the bank to deliver over 24% growth in earnings with RoAs at
1.4% and RoEs at about 20%. It trades at 2.6X FY2012E book and 16X EPS. We initiate
coverage with a BUY rating and target price of `300 (3.2X FY2012 book).

IRS 2010 Q4 UPDATE : positive for HT Media: Kotak Sec

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IRS 2010 Q4 UPDATE
IRS 2010 Q4 data, released yesterday, is positive for HT Media, as all its
major newspapers/ editions have continued to perform strongly. Hindustan
Times' Average Issue Readership (AIR) has grown 2.1% q/q, while Hindustan
has grown 3.7% q/q. Mint has grown in readership to 1.99 lakh readers
(+11%, q/q). We re-iterate our bullish stance on HT Media (BUY, Price Target
Rs 224/share (FY-12 end).
n IRS Q4 2010 Average Issue Readership (AIR) shows continued gains for HT
Media's three newspapers, Hindustan Times, Mint, and Hindustan.

Kotak Sec, News Round-up March 15, 2011

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Economy News
4 State-run oil firms propose to raise petrol prices by up to Rs 4 a litre this
week to offset rising crude oil costs as the Budget has ignored their
demand to cut duties on the fuel. The chairmen of at least two state-run
oil companies are meeting oil minister S Jaipal Reddy on Tuesday to
secure his informal approval, senior oil ministry officials and top
executives of the oil firms said requesting anonymity. (ET)
4 Garment manufacturers today began their two-day strike, closing down
their factories across India demanding rollback of 10 per cent excise duty
imposed on branded apparel in Budget 2011—12. (BL)
4 India's tyre exports grew by over 17% year-on-year to 29.19 lakh units
during April-September 2010, Parliament was informed today. During
April-September 2009, the country exported 24.81 lakh units tyres,
Minister of State for Commerce and Industry Jyotiraditya Scindia said in a
written reply to Lok Sabha. (BS)

Network-18 increases the Interest Rate- Now get 11.5% pa. on FDs

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Kindly note that Network18 and Television Eighteen have started accepting Fresh Deposits w.e.f 15^th March’11 & they haveincreased the interest rate by 0.50%.

Scheme (A) – Non Cumulative				Scheme (B) – Cumulative
Period	Minimum Amount	Interest Rate % p.a.		Period	Minimum Amount	Interest Rate % p.a.		Amount Payable on Maturity	Effective Yield %
		OLD	NEW			OLD	NEW
6 Months	10,000	9.00 %	9.00 %	-	-	-	-	-	-
1 Year	10,000	11.00 %	11.50 %	1 Year	10,000	11.00 %	11.50 %	11,201	12.10 %
2 Year	10,000	11.00 %	11.50 %	2 Year	10,000	11.00 %	11.50 %	12,545	12.73%
3 Year	10,000	11.00 %	11.50 %	3 Year	10,000	11.00 %	11.50 %	14,051	13.50 %

v      Interest is compounded quarterly.

v     0.50% p.a. additional interest for senior citizens

Network-18 & TV-18 Fixed Deposit:

·         High attractive interest rate 11.50% p.a for 1 yr, 2 yrs, 3 yrs FDs.

·         0.50% p.a. additional interest for senior citizens.

·         Minimum investment amount of just Rs. 10,000.

·         A renowned Media Group broadcasting channels IBN 18, CNN-IBN, IBN 7, IBN Lokmat, Network 18, Colors, CNBC TV18, CNBC Awaaz etc.

·         Profit After Tax (PAT) of over Rs. 1,982.23 Lakhs for 2009-10

·         Rated MA-(Stable) by ICRA

FII & DII trading activity on NSE and BSE as on 15-Mar-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 15-Mar-2011.

FII trading activity on NSE and BSE in Capital Market Segment(In Rs. Crores) Category Date Buy Value Sell Value Net Value FII 15-Mar-2011 2520.63 2372.35 148.28

 

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 15-Mar-2011.

DII trading activity on NSE and BSE in Capital Market Segment(In Rs. Crores) Category Date Buy Value Sell Value Net Value DII 15-Mar-2011 1247.79 680.69 567.1

 

 

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FII DERIVATIVES STATISTICS FOR 15-Mar-2011

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FII DERIVATIVES STATISTICS FOR 15-Mar-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	111263	3024.54	171312	4638.87	456168	12414.95	-1614.33
INDEX OPTIONS	355687	9542.99	304066	8185.19	1890514	51511.92	1357.81
STOCK FUTURES	42506	1132.03	47920	1248.20	1130347	27440.50	-116.17
STOCK OPTIONS	7031	191.21	8553	228.73	41255	1080.59	-37.52
						Total	-410.21