03 September 2012

Annual Report Analysis - Bharti Airtel ::Edelweiss, PDF link

Bharti Airtel’s (Bharti) FY12 annual report highlights an improvement in operating cash flows for the African CGU but negative FCF has increased. Goodwill impairment testing did not result in impairment though with low margin of safety. Currency translation impact on USD loans lying with Netherland subsidiary amounted to INR65bn, primarily arising due to INR depreciation. Refinancing of INR193bn of loans during FY13 may hike financing cost but the recognition of translation losses will be deferred.

Category-Wise Turnover 3-Sep-12

Trade DateCategoryBuy Value in Rs.CroresSell Value in Rs.Crores
3-Sep-12Mutual Funds34.8134.410.40
3-Sep-12Proprietory Trades34992.2535761.05-768.80
3-Sep-12Others28893.5428829.8963.65
Notes :
1.  Buy / Sell value at the end of day:
     Options Value (Buy/Sell) = Strike price * Qty
     Futures Value (Buy/Sell) = Traded Price * Qty
2. Others exclude FIIs, Mutual Funds, Proprietory Trades

 

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Economy Release Calendar - September ::Edelweiss, PDF link


Given below is a calendar indicating significant economic events/releases due in September 2012:
·       For India, monetary policy announcement, industrial production data and inflation data will be of significance.
·       Globally, monetary policy announcements, data released on inflation, manufacturing indices and unemployment statistics will continue to be keenly awaited.

Regards,

FII DERIVATIVES STATISTICS FOR 03-Sep-2012

FII DERIVATIVES STATISTICS FOR 03-Sep-2012 
 BUYSELLOPEN INTEREST AT THE END OF THE DAY 
 No. of contractsAmt in CroresNo. of contractsAmt in CroresNo. of contractsAmt in Crores 
INDEX FUTURES390291002.63459641192.6140687910658.79-189.98
INDEX OPTIONS3354868854.972927337737.22140492536856.271117.75
STOCK FUTURES393861019.99491451274.1192333523720.00-254.12
STOCK OPTIONS24292646.8223067615.7127924754.5931.11
      Total704.75

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FII & DII trading activity across NSE and BSE 03-09-2012

 BuySellNet
ValueValueValue
FII1669.481724.27-54.79
DII682.27842.97-160.7

 


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BSE, Bulk deals, 3/9/2012

Deal DateScrip CodeCompanyClient NameDeal Type *QuantityPrice **
3/9/2012524412Aarey DrugsVISHAL ANIL KUMAR SHAHS10097238.12
3/9/2012532919Allied CompACACIO TRADELINK PRIVATE LIMITEDS10000001.52
3/9/2012514332Anuvin IndsPRIYAL CHETAN KOTHARIS380009.43
3/9/2012530261Arcuttipore TeaKRISHAN KHANDELWALB7340815.71
3/9/2012530261Arcuttipore TeaARADHANA CREDIT PRIVATE LIMITEDS10000015.72
3/9/2012511636DJS StockACUTE CONSULTANCY LIMITEDS2740057.32
3/9/2012517973DMC EDUARUN DASHRATHBHAI PRAJAPATIB1938495.19
3/9/2012517973DMC EDUARUN DASHRATHBHAI PRAJAPATIS1938495.15
3/9/2012531820Finalysis CredMAHENDRA VANECHAND SHAHS3100034.45
3/9/2012526598Gujarat Narm FlyJAYABEN MANSUKHLAL PATELS3750042.00
3/9/2012523712JMG CorpATUL KUMAR MISHRAB18800003.05
3/9/2012523712JMG CorpNAVEEN SOODS18800003.05
3/9/2012534623Jupiter InfomediaDHRUTI ILESH MERCHANTB2400021.95
3/9/2012534623Jupiter InfomediaJIGNA JAYESH SHAHS3000022.03
3/9/2012512489Oasis SecINDRA KUMAR BAGRIB11000092.50
3/9/2012512489Oasis SecABHISHEK INDRAKUMAR BAGRIS11000092.50
3/9/2012590074Ortin Lab-$RAJESH GAURISHANKAR PODDARB3017919.84
3/9/2012511734Pasupati FinPRIYA SHRIVASTAVAB2390115.24
3/9/2012515127Rammaica IndiaPARESH DHIRAJLAL SHAHB5000022.25
3/9/2012531228Rander CorpSHREYANS FINLEASE PVT. LTD.B6940049.27
3/9/2012590077Ranklin Sol-$PULLARAO CHINTAS300005.03
3/9/2012531646RFL IntlSANJEEV AND CO SANJEEV KUMAR JAINB620007.95
3/9/2012531646RFL IntlSMITA MAHENDRA PATELS355007.95
3/9/2012531646RFL IntlBHAILAL DEVRAJBHAI PATELS260007.95
3/9/2012534618Sangam AdvisorsSHATRUNJAYA ESTATES PRIVATE LIMITEDB29400022.10
3/9/2012534618Sangam AdvisorsHARAKCHAND MOONDRAS6600022.00
3/9/2012534618Sangam AdvisorsRAMJOT MOONDRAS7200022.00
3/9/2012534618Sangam AdvisorsHARAKCHAND MOONDRA(HUF)S3600022.10
3/9/2012534618Sangam AdvisorsSETIKA RAM MOONDRAS4200022.61
3/9/2012511433SDFC FinanceSTARDOM TRADING COMPANY PVT LTDB6800018.81
3/9/2012511754Shalibhadra FinDAVE RAKIN SHIVPRASADB3300059.90
3/9/2012511754Shalibhadra FinHINABEN ROMESHBHAI SHAHS3300059.90
3/9/2012526953Venus RemediesA K G SECURITIES AND CONSULTANCY LTDB49296284.94
3/9/2012526953Venus RemediesCROSSEAS CAPITAL SERVICES PRIVATE LIMITEDB134669283.46
3/9/2012526953Venus RemediesA K G SECURITIES AND CONSULTANCY LTDS49296285.15
3/9/2012526953Venus RemediesCROSSEAS CAPITAL SERVICES PRIVATE LIMITEDS134665283.27
* B - Buy, S - Sell
** = Weighted Average Trade Price / Trade Price

Sept 3: Edelweiss Technical Reflection (ETR)


Edelweiss Technical Reflection (ETR)
    Nifty resumed its downward draft after a day of recovery owing to the August expiration by dropping 1% to close below the 5300 mark. The day began on a weak negative with the index opening lower on weak global cues ahead of the crucial speech by US Fed chairman at the Jackson Hole symposium and continued to climb down as the day progressed on renewed selling pressure.  Trading activity was average and the breadth slid in favor of declines. Volatility has been steadily on the up move ending at 17.30%. Nifty has somehow managed to close above the important trend line falling from the Feb peak at 5250 and with hourly momentum rolling bullish from oversold levels, expect a rebound rally back towards the 5335/5350 resistance cluster in the immediate near-term. On the weekly charts, Nifty has shaved off previous three week’s gains suggesting strong bearish undertone; and for the month though it has managed meager gain of 0.50%. We enter a period of seasonally high volatility both in the Indian and global markets and thus prefer to be cautious. The upside is capped at 5345 / 5370 (61.8% retracement of the recent fall) where fresh selling is likely to emerge having potential to pull Nifty down to 5200 (intermediate supports) and possibly lower towards 5000.

    An overall bearish trend was prevalent in the sectoral indices with the exception of Healthcare (+0.32%) index that witnessed some defensive buying. Among the top losing sectors were Metals (-1.21%), Power (-1.20%) and Auto (-1.07%). Broader markets once again outperformed their frontline index with gains of 0.15% for the Mid-cap index and 0.22% for the Small-cap index.

    Bullish Setups: INFO, TCS, HUVR, RIL, BIOS, APNT, DRRD
    Bearish Setups: CNXBANK, LT, HNDL, ONGC, JPA, STLT

Stocks in News - Sept 3, 2012-EDEL


Stocks in News
    Mahanadi Coal moves SC to restart closed mines (ET)
    TPG may exit Shriram Transport Finance in open market (ET)
    CAG to audit revenue losses at Oil companies (ET)
    CCI may ask Carmakers to explain high prices of spares (ET)
    Govt may ease investment norms for PSUs with cash of over INR 1.6L Cr (ET)
    Mallya to take Diageo call in next few weeks (ET)
    RCF mulls billion-$ investment in Canada (DNA)
    M&M on biz expansion spree in Lanka (DNA)
    HSBC seeks exit from Karnataka bank (DNA)
    PM says no coal block cancellations (BS)
    R-Infra to start cement production (BS)
    58 coal blocks’ status review today (BS)

NSE, Bulk deals, 03-Sep-2012

DateSymbolSecurity NameClient NameBuy / SellQuantity TradedTrade Price /
Wght. Avg.
Price
Remarks
03-Sep-2012GLODYNEGlodyne Technoserve LtdMERRILL LYNCH CAPITAL MARKETS ESPANA S.A. SVBSELL4,60,00071.10-
03-Sep-2012GLODYNEGlodyne Technoserve LtdYES EQUITIES PRIVATE LIMITEDBUY2,60,00069.05-
03-Sep-2012GLODYNEGlodyne Technoserve LtdYES EQUITIES PRIVATE LIMITEDSELL78,61270.00-
03-Sep-2012HOTELRUGBYHotel Rugby LtdJAIPRAKASH D AGARWALSELL1,16,48024.45-
03-Sep-2012JISLJALEQSJain Irrigation Systems LCLSA (MAURITIUS) LIMITEDSELL23,46,88062.35-
03-Sep-2012KFAKingfisher Airlines Ltd.TRANSGLOBAL SECURITIES LTD.BUY48,62,0919.19-
03-Sep-2012KFAKingfisher Airlines Ltd.TRANSGLOBAL SECURITIES LTD.SELL48,30,0919.20-
03-Sep-2012VENUSREMVenus Remedies LimitedCROSSEAS CAPITAL SERVICES PVT. LTD.BUY1,34,410283.10-
03-Sep-2012VENUSREMVenus Remedies LimitedCROSSEAS CAPITAL SERVICES PVT. LTD.SELL1,34,414283.57-
03-Sep-2012VENUSREMVenus Remedies LimitedMULTIPLEX CAPITAL LTD.BUY70,674285.04-
03-Sep-2012VENUSREMVenus Remedies LimitedMULTIPLEX CAPITAL LTD.SELL70,675285.23-

Buy Tata Motors: “Meeting Takeaways”: LKP


The company is sanguine about the JLR business, while in the domestic
markets, they are concerned about the MHCV segment. They foresee an
improvement in PV business and are expecting the robust performance of the
LCVs to continue going forward.

India Cements :Higher realization leads to improved performance :Centrum


Higher realization leads to improved performance
India Cements’ Q1FY13 result was above our estimates with revenues at
Rs12bn (est. Rs11.2bn), EBITDA at Rs2.8bn (est. Rs2.3bn) and op. margin at
23.1% (est. 20.7%). The reason for better performance was primarily higher
cement realization (Rs4,439/tonne vs. est. Rs4,386/tonne) and higher income
from IPL (Rs1,220mn vs. est. Rs900mn). Adjusted profit of the company was at
Rs936mn (est. Rs858mn). Higher-than-expected increase in realization led to
EBITDA/tonne of Rs1,029 against our estimate of Rs959/tonne. Though,
utilization rate in the South region continues to remain sluggish,
manufacturers have been able to pass on cost hikes to consumers and
improve their op. margins. Price in the South region has increased by Rs10-
20/bag in last one month and the current price is ~1% higher than the
average price in Q1FY13. We believe that higher realization in the region
would result in improved profitability for manufacturers and expect EPS of
India Cements to increase by 36.5%/13.3% to Rs12.2/Rs13.8 in FY13E/FY14E.
RoE of the company is expected to improve to 10.9% in FY15E against 6.9% in
FY12 (RoE was 1.9% in FY11). We maintain Buy on the stock with a target
price of Rs118 (upside of 39% from CMP).
Higher realization and sales volume lead to improved performance and
help beat estimates: Revenue of the company increased 13.7% YoY to
Rs12bn (est. Rs11.2bn) driven by a) 7.7% YoY increase in cement realization to
Rs4,466/tonne (est. Rs4,386/tonne) and b) 2.9% YoY increase in cement sales
volume to 2.38mt. Improvement in realization and sales volume led to 14.9%
YoY growth in EBITDA to Rs2.8bn (est. Rs2.3bn) and EBITDA margin improved
25bps YoY to 23.1% (est. 20.7%). EBITDA/tonne of cement increased 4.6% YoY
(and 25.3% QoQ) to Rs1,029/tonne.
However, higher interest cost and tax rate led to decline in profits:
Interest cost of the company increased 20% YoY to Rs699mn (adjusted for
Rs250.2mn related to losses on foreign exchange translations). Tax rate during
the quarter was at 24.8% against 16.4% in Q1FY12. Higher interest cost and
tax rate led to 10.4% decline in adjusted profit to Rs936mn.
Increase in operating costs offset by steep increase in realization:
Operating cost for the Cement division increased 8.6% YoY to Rs3,437/tonne
due to an increase in power & fuel cost, freight cost and employee expenses.
Employee expense increased by 20.2% YoY to Rs331/tonne, freight cost by
20.2% YoY to Rs937/tonne due to increase in railway freight charges and
diesel price. Power & fuel cost increased 17.2% YoY to Rs1,210/tonne due to a)
increase in electricity charges by Tamilnadu and Andhra Pradesh SEBs and b)
increase in domestic coal price.

How CAG fixed Coalgate loss ::Business Line


It’s a mind-boggling number — Rs 1.86 lakh crore. That’s 10 zeros after 186. And it’s got the Government cowering for cover, once again.
The Comptroller and Auditor General (CAG) — the national auditor — claims that this gargantuan figure is the gain private companies enjoyed from improper allocation of coal blocks by the Government.
If true, Coalgate, as this is being referred to by critics, will become the largest scam the country has seen, ever. The Opposition has mounted a ferocious attack and demanded the Prime Minister’s resignation. The Government has hit back and picked holes in the CAG’s calculations.

Pfizer :Slower sales growth affects results :Centrum


Slower sales growth affects results
Pfizer results for Q1FY13 were lower than our expectations. The
company reported 7%YoY decline in revenues, 270bps decline in
EBIDTA margin and 41%YoY decline in net profit due to lower growth
of pharma business and the divestment of animal healthcare (AHC)
business. The sales growth of the pharma segment was 4%YoY due to
slower growth of three key brands. The introduction of new products
in the domestic market is likely to drive growth. Pfizer is a debt free
company with cash per share of Rs300. We have revised the rating
from Buy to Neutral with a target price of Rs1,325 (based on 17x
FY14E EPS of Rs77.9) with an upside of 4.9%.
Slow domestic growth: Pfizer reported 7%YoY decline in total revenues from
Rs2.61bn to Rs2.43bn due to the slower growth of pharma business and
divestment of AHC business to a 100% subsidiary. The pharma business (90% of
revenues) grew by 4%YoY from Rs2.10bn to Rs2.18bn. AHC revenues were ‘nil’
against Rs315mn.
Margin under pressure: Pfizer’s EBIDTA margin declined by 270bpsYoY from
16.0% to 13.3% due to the rise in personnel cost and other expenses. Material cost
declined by 280bps from 32.6% to 29.8% of revenues due to the change in product
mix and the absence of AHC products. Personnel cost increased by 100bps YoY
from 22.3% to 23.3% due to lower sales growth. Other expenses were up by
450bps from 29.1% to 33.6% due to the additional expenses of Rs15mn related to
the contract field force and brokerage of Rs20mn related to the new office.

Fall in financial savings ::Nomura Financial Advisory and Securities in Business Line


There was sharp decline in absolute savings in small savings, share and debentures, and currency in FY-12. Marginal growth in life insurance funds (1.2 per cent year-on-year) was also responsible for a fall in financial savings-to-GDP ratio. Even though savings in bank deposits grew by 15 per cent year on year, the deposits-to-GDP ratio was unchanged.
Sustained high inflation and falling real incomes also implied a decline in currency holdings of households (from 1.8 per cent of GDP in FY11 to 1.2 per cent in FY12).
Deviation of savings to gold consumption also cannot be blamed, as gold consumption has seen a significant correction in the last year, with the last data point for the second quarter of calendar 2012 reflecting a 38 per cent year-on-year drop.
We estimate the gross savings-to-GDP ratio to have fallen to 31.4 per cent of GDP in FY12, resulting in the highest ever gap in savings and investment (over 4 per cent of GDP).

Past performance isn’t everything ::Business Line


Investing directly in stocks and index funds investments are complementary in nature. SIMON KARABAN, DIRECTOR, RESEARCH AND DESIGN, S&P DOW JONES INDICES
Simon Karaban, Director, Research and Design, S&P Dow Jones Indices, fields a few questions on index versus active investing.
Indian indices tend to tilt towards a few sectors and stocks. The Nifty has a 28 per cent weight in financial stocks. The top five stocks account for a 35 per cent weight in it. Do investors mimicking these indices run concentration risks?

Thejo Engineering IPO opens on tomorrow (Sept 4th)



Issue Terms
 
Issue price / Floor Price (Rs)
402-430
Application per share (Rs)
402.00
Minimum investment amount (Rs)
120,600.00
Minimum bid (no of shares)
300 shares and in multiples of 300 thereafter
Maximum Shares for Retail
300
Issue Date and Size
 
Issue opens
04-Sep-12
Issue closes
06-Sep-12
Listing on
NSE SME
Issue size (Rs cr)
19
Mkt cap at issue price (Rs cr)
N.A.
Shares on Offer
Lakhs
Total shares offered
N.A.
Of above, offered to public
N.A.
Post-issue shares
N.A.
Post-issue promoters' holding(%)
N.A.
Company Financials (Rs cr)
2012-03-31
No of months
12
Turnover
118.04
Net profit / (loss)
9.01
Borrowings
N.A.
Lead Managers & Registrar
Lead Manager(1)
IDBI Capital Market Services Limited
E-mail
thejo.ipo@idbicapital.com


Registrar
Cameo Corporate Services Limited
E-mail
thejo@cameoindia.com
Company Contact Details
Company's address
Aysha Building, 2nd floor,41, Whites Road, Chennai, Tamil Nadu
Pincode
600 014
Tel No.
91 44 4392 1900
Fax No.
91 44 28522547
Website
http://www.thejo-engg.com