08 November 2012

FII & DII trading activity on NSE and BSE 08-11-2012

CategoryBuySellNet
ValueValueValue
FII2053.351792.14261.21
DII901.63817.0584.58

 


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FII DERIVATIVES STATISTICS FOR 08-Nov-2012

FII DERIVATIVES STATISTICS FOR 08-Nov-2012 
 BUYSELLOPEN INTEREST AT THE END OF THE DAY 
 No. of contractsAmt in CroresNo. of contractsAmt in CroresNo. of contractsAmt in Crores 
INDEX FUTURES392451102.61537111494.6544279511216.48-392.05
INDEX OPTIONS39389711262.9940241911539.71182681352439.28-276.71
STOCK FUTURES30413873.72450781270.77108518429963.30-397.06
STOCK OPTIONS632611769.94651871822.92824932327.89-52.98
      Total-1118.80

 


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V‐Guard Industries:: Outstanding performance continues; Maintain ‘BUY’ and Upgrade TP to Rs. 519:: Karvy


Outstanding performance continues; Maintain
‘BUY’ and Upgrade TP to Rs. 519
Robust growth in top‐ and bottom‐line: V‐Guard’s top‐line grew by 43%
YoY to Rs. 3,135mn in Q2FY13 due to strong growth in pumps, PVC cables,
LT cables and digital UPS. The company has increased EBITDA by 99% YoY
to Rs. 300mn and expanded the margin by 270 bps to 9.6% as Q2FY12
performance was marred by copper price crashing. Net income increased by
163% YoY to Rs. 180mn.

Hindustan Construction Company – Riding through rough weather:: Aditya Birla Co


Result Analysis
 Sales increase marginally by 4%; order inflows showing signs of improvement:
Company’s sales increased marginally by 4% y-o-y to `8,657mn in line with our
expectations. The company’s order book stands at~ `150.1bn (32% hydro, 33% transport,
21% water and 14% nuclear and others), with an strong order inflow of `19,070 mn. The
order inflow outlook remains bleak as industrial capex has slowed down and also many
projects are facing execution issues on account of which top-line growth is likely to be
sluggish for FY13.
 Operating profit jump by 106bps y-o-y and 582bps q-o-q: During 2QFY13, the
company’s operating profit jumped by 13.7% y-o-y to `1,121mn, while the operating
margin improved by 106bps y-o-y and 582bps q-o-q to 12.9% due to better top-line
growth and better cost control management. We expect the operating margin to be at
~10% levels as the share of high margin hydro projects is coming down.
 Operating profits and higher other income lead to lower losses; Higher debt and
interest costs still an overhang: Company reported a net loss of `178mn during
2QFY13 below our as well as street estimates due to better operating performance and
higher other income. The company reported a forex gain of `59mn and an exceptional
item of `21.7mn on account of reversal of interest costs due to debt restructuring. Interest
cost rose by 21.1% y-o-y to `1,301 mn.
Other Key Highlights:
 Karl Steiner AG; another quarter of strong order inflows: The Company has a strong
order backlog of CHF.1.45bn (~`84bn) while the Company reported a turnover of
CHF185.6mn (~`10.8bn) and inflows to the tune of ~CHF131 mn(~`7.6bn).
 HCC Infrastructure: Dhule Palesner Highway has achieved 100% completion for Phase I
while Phase II is progressing well.HCC Infrastructure is expecting a revised toll
notification for the Dhule Palesnar Highway. Execution of West Bengal projects (NH34)
underway and is ~35% complete.
 Change in Order book mix –Likely to augur well for the company: On the basis of
current order book mix we believe FY14 onwards top-line is likely to pick up as share of
high gestation hydro projects(32% hydro,33% transport) is coming down, however
operating margin are also likely to take a hit since hydro projects are comparatively higher
margin projects. The major positive which the company is likely to witness on account of
change in order book mix is working capital cycle which is likely to improve FY14 onwards
as transportation and other orders are lower gestation projects.
Outlook and Valuations:
HCC has posted good set of results on the top-line as well as operating front; Top-line is likely
to be sluggish during FY13 due to execution issues and lower capex investments; however
operating performance has improved and is likely to stabilize on account of various cost control
measures. Profitability has been hit badly on account of higher debt and interest costs. Despite
CDR package and control in capex, debt and interest costs are showing no signs of
stabilization and are increasing which is likely to take a toll in its profitability.
Factoring in a) muted order inflows b) improvement in operating performance we maintain our
top-line estimates and marginally increase our operating margin estimates (~20bps); however
interest costs and debt levels are showing no signs of improvement and hence we revise
interest costs upwards. Considering the above factors we revise our FY13 and FY 14 to loss of
`1,797mn (previously loss of `1,856mn) and loss of `1,416mn (previously loss of `1,305mn)
respectively.
Infrastructure segment has been under severe pressure and we not foresee the situation
improving in the near term. HCC has witnessed muted top-line growth however operating
margins are showing signs of stabilisation. The company’s balance sheet is highly leveraged
and with low visibility on fund raising, high debt and interest cost burden are likely to be an
overhang on the stock to and hence we maintain our “Hold rating” on the stock. At the CMP,
the stock trades at 1.1xFY14E P/B and 14.6x FY14E EV/EBITDA.

Marico::Lower Sales High A&P Sluggish Performance:: Karvy,


Lower Sales High A&P Sluggish Performance
Marico’s Q2FY13 performance was below our expectation. Net sales –
excluding recently acquired Setwet, Zatak & Livon brands – have clocked slower
growth of 14% YoY. Parachute rigid pack and Saffola has registered slower
9% and 6% volume growth as compared to the strong volume growth
performance in the past 5‐6 quarters. Copra price reduction has benefited
and resulted into 634bps YoY and 211bps QoQ improvement in the gross
margin. However, on account of higher A&P spending – were at 13.7% (% of
sales) up 400bps YoY and 140bps QoQ‐ partially set off gross level profitability.
EBITDA margin has expanded by mere 107bps YoY while it contracted by
175bps on QoQ basis. Lower other income and higher depreciation has
further impacted the net profitability and resulted into slower PAT growth of
10% YoY while it declined by 30% on QoQ. PAT stood at Rs859mn (Karvy
expectation Rs1,180mn). Although, we maintain our FY13‐FY15 earnings
estimates owing to the expectation of performance improvement in the
coming quarters

City Union Bank- Valuation captures positives:: Karvy


Valuation captures positives
In Q2FY13, City Union Bank’s (CUB) profits grew 3.7% YoY (up 9% QoQ)
to Rs804 mn, below estimate owing to higher NPA provisions. NII grew
24% Yoy (up 8% QoQ) to Rs1.5 bn driven by robust loan growth. Operating
profit grew 26.4% YoY (12.4% QoQ) to Rs1.3 bn marginally higher than our
estimate. NIM improved 15bps to 3.3% owing to improving yields on
advances, while asset quality showed slight deterioration.

DSP Tiger rides banking stocks :: Business Line


Hexaware :: TP: INR135 Buy ::Motilal oswal


 Hexaware's (HEXW IN) 3QCY12 results were below estimates. Revenues at USD92.8m grew 1.7% QoQ, lower
than estimate of 2.5% growth. EBITDA margin fell 130bp QoQ to 21.6% v/s estimate of 40bp decline, explained
by lower currency rate (INR54.68 v/s est of INR55.5), lower utilization (67.6% v/s est of 70%) and higher SGA
(17.9% v/s est of 17.4%). PAT at INR841m too was below estimate of INR919m, on lower revenues, margins and
forex loss of INR39m.
 For 4QCY12, company guided for revenues of USD94.7-96.5m, QoQ growth of 2-4%. This implies full year USD
revenue growth of 19-19.6%, down from 'at least 20%'.
 The very tenets of Hexaware's story appear to be under stress, at least over the near term: [1] it is chasing 4
large deals in the pipeline. But this time around, none is seeing an imminent closure. And a deal win, if any,
may not get finalized before 1QCY13, [2] acquisitions are back on the radar. Earlier, they were not the focus,
with management citing strong organic growth opportunity. In the event of an acquisition, the payout policy
too may be revisited.
 However, Hexaware expressed confidence in continuing to grow above the industry average next year, based
on early conversations with key accounts.
 We lower CY13E USD revenue estimate by 5.2% on slowing velocity of large deals and EPS estimate by 12.5%.
Our revised target price of INR135 is based on 11x CY13E EPS v/s a multiple of 12x earlier due to: [1] slowing
velocity of large deal wins and [2] likelihood of payout ratios coming down on the back of an acquisition, with
inorganic growth route back in contention.

Mcleod Russel:: Adverse weather in Sep’12 may impact Q2 -- Nomura research,


Unfavorable weather leads to lower production globally
We believe that the heavy rains in Assam in September which produced
more than half (~51%) of India’s tea production in 2011 (according to
Tea Board of India) have caused production losses of (Hindu Business
Line, 2nd October) of another 18-20mn kg in the September month on
top of the 12mn kg lost between January –July 2012. This will mean that
India’s total production loss in CY2012 which till July was ~20.8mn may
be in the range of 28mn kg-40mn kg (August production was apparently
higher versus 2011, and if some make-up happens in Nov-Dec versus
last year when there were some crop losses last year). A similar trend
persists across other major countries including Kenya and Sri Lanka. In
Sri Lanka crop losses have intensified owing to the worst draught the
country has faced since 1992 and the output of high grown teas is down
11.6% during January to August this year from a year ago, while the
Kenyan tea board is guiding to a 5% decline in production for the full
year.

Polaris Financial Technology:: nirmal bang


Slow Quarter, Guidance reduced due to currency impact; however better disclosure practices introduced and compelling valuations
Polaris’ USD revenues grew by 2.2% QoQ but on a YoY basis revenues were down by 1.3% at $109.9mn. The product business grew by 12.5% QoQ on the back of strong license revenue booking however declined by 9.34% on a YoY basis. The services business declined 1.2% QoQ and were up just 1.2% YoY, suggesting lack of traction in services business. In Rupee terms, revenues grew 3% QoQ and 17.5% YoY to Rs 599 crore. Gross margins grew 163 bps QoQ to 38.7% Despite wage hike given in Q2FY13 to 50% staff, EBIDTA margins grew by 288bps to 16.93% through a mix of reduction in headcount which pushed up the utilization by 70bps, rise in license sales during the quarter and operational efficiency. Management has guided that margin performance can be maintained driven by strength in product license sales bookings and new deal wins. Forex loss during the quarter was at Rs.13 crore. In addition, other income at 7.8 crore loss consists of one times (AS-30 re-instatement loss of ~ 17.5 crore and some other gain of Rs.5.5 crore with interest income of Rs.4 crore). Adjusted PAT was up 18% QoQ at Rs.75.4 crore.

TDS rules for senior citizens :: Business Line


I am a very senior citizen and my tax exemption limit is Rs 5 lakh. Taking into account my other income, I estimated my withdrawal amount from my NSS A/C as Rs 2.8 lakh without TDS deduction against Form 15H.
On October 9, 2012, I handed over my withdrawal form for Rs 2.8 lakh with Form 15H and photocopy of my PAN card to GPO, Bangalore.
I was informed that any amount over Rs 2.4 lakh will invite TDS@20 per cent.
As I needed funds urgently, I amended my request to Rs 2.4 lakh.
Please clarify if the GPO officials were right in limiting amount to Rs 2.4 lakh.
— S.N. Sarma

SGX Singapore: 5,752.50 -48.00; Markets to be down

SGX Singapore: 5,752.50 -48.00;
Markets to be down
8 Nov 12
8:45 AM India time