Head of Equities, reliance MF Sunil Singhania's views on Indian equity markets

FII DERIVATIVES STATISTICS FOR 20-Nov-2012

FII DERIVATIVES STATISTICS FOR 20-Nov-2012
	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	40686	1097.91	30104	822.01	322262	7824.89	275.90
INDEX OPTIONS	405688	11318.81	396700	11091.90	1881769	52449.73	226.91
STOCK FUTURES	65527	1777.67	57793	1506.86	1105410	29249.99	270.80
STOCK OPTIONS	53825	1481.12	52989	1457.63	104348	2797.87	23.49
						Total	797.11

 

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FII & DII trading activity on NSE and BSE 20-11-2012

Category		Buy	Sell	Net
		Value	Value	Value
FII		2377.81	2234.43	143.38
DII		769.65	781.18	-11.53

 

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Tara Jewels IPO opens tomorrow

Issue Terms
Issue price / Floor Price (Rs)	225-230
Application per share (Rs)	225.00
Minimum investment amount (Rs)	11,250.00
Minimum bid (no of shares)	50 shares and in multiples of 50 thereafter
Maximum Shares for Retail	850

Issue Date and Size
Issue opens	21-Nov-12
Issue closes	23-Nov-12
Listing on	BSE, NSE

Growth across segments Aurobindo Pharma :: Centrum

Growth across segments
Aurobindo Pharma’s (APL) results for Q2FY13 were better than our
expectations. The company reported 40%YoY growth in revenues, 600bps
improvement in EBIDTA margin and net profit of Rs2.23bn against net loss of
Rs803mn. The formulations business (59% of revenues) grew by 53%YoY
whereas the API business (40% revenues) grew by 27%YoY. The company’s
interest cost increased by 62%YoY due to the increase in working capital. APL
reported forex gain of Rs1,177mn against forex loss of Rs1,854mn. We have a
Buy rating for the scrip with a target price of Rs245 (based on 8x FY14E EPS).

Online insurance, the easy way to buy your next policy :: Business Line

Neha is a high profile executive working in an MNC. While driving back home after work, she suddenly remembered that she had forgotten to renew her car insurance policy which was due to expire the next day.

She had also missed on paying the premium for her mother’s health insurance policy, the grace period for which would expire the next day.

Neha recollected a conversation in office regarding buying insurance online. She quickly switched on her laptop, logged on to the Web site of her car insurer and was able to renew her car insurance in a few easy steps. She then searched for the Web site of her medical insurance firm. With the policy document in hand, she entered the old policy number. A new Web page opened with all information fields related to her mother’s policy already filled in. She simply clicked the renew tab and chose the mode of payment.

Good growth from US business- Ranbaxy Labs :: Centrum

Good growth from US business
Ranbaxy Labs’ (RLL) results for Q3CY12 were lower than our expectations for
revenues but higher for EBIDTA and net profit. The company reported a growth of
28%YoY in revenues, 410bps in EBIDTA margin and net profit of Rs3.61bn before
EO items. The sales growth was driven by N. America (35% of revenues), which
grew by 62%YoY due to the launch of authorised generic of Actos in the US and
favourable currency movement. RLL’s overall forex gain was Rs4.62bn during the
quarter. We have Neutral rating for the scrip with a revised target price of Rs563
(based on 23x CY13E EPS of Rs24.3+ FTF of Rs5.3).
Strong growth in US revenues: RLL reported 62%YoY growth in N. American
revenues from $103mn to $167mn. The company’s India revenues grew by
11%YoY from Rs5.32bn to Rs5.88bn in line with the market growth rate of ~12%.
Margin improvement: RLL’s EBIDTA margin improved by 410bps YoY from 8.9%
to 13.0% due to the reduction in personnel cost and other expenses. The
company’s material cost increased by 10bps from 38.5% to 38.6% of revenues.
RLL’s personnel cost declined by 200bps from 19.4% to 17.4% due to higher sales
growth. Other expenses declined by 220bps from 33.2% to 31.0% of revenues. RLL
reported Rs3.93bn forex gain against forex loss of Rs3.63bn from the derivative
contracts.

Use mutual fund proceeds for children’s education :: Business Line

I am 46 years old and will retire at 60. My wife is a home-maker. My daughter is 12 years old, while my son is 7.

I draw a net salary of Rs 90,000. My monthly expenditure including rent is Rs 30,000. My savings: RD - Rs 25,000, PF - Rs 9,500 and SIPs of mutual funds - Rs 20,000. The current value of my investments in MFs is Rs 8 lakh. I have fixed deposits of Rs 10 lakh. My other assets are a house worth Rs 25 lakh and a plot worth Rs 7 lakh. I have Rs 50,000 in a PPF account which was invested 15 years back. I am planning to buy a house next year for Rs 60 lakh after selling my flat. The EMI will be Rs 25,000. My family is covered by a group medical policy. My monthly surplus is Rs 15,000.

For my daughter’s higher education, I need Rs 20 lakh in 2017 and Rs 30 lakh for my son’s education.

The current balance in my PF account is Rs 16 lakh and at retirement I am eligible for gratuity of Rs 10 lakh. How much do I need to save for my retirement since I have no pension benefits?Do I need to change the current investment strategy?

— K.V. Sundar

Growth option multiplies returns :: Business Line

I am 33 years old and have two daughters aged two-and-a-half years and six months. Currently, I am investing Rs 34,000 per month in SIPs for long-term goals with investment horizon of more than 20 years.

The SIP composition is as follows: Quantum Long Term Equity – Rs 8,000, DSP BR Top 100 – Rs 3,500, ICICI Prudential Dynamic – Rs 3,000, HDFC Mid Cap Opportunities – Rs 3,500, IDFC Premier Equity – Rs 4,000, ICICI Prudential Discovery – Rs 3,000, HDFC Prudence – Rs 3,500 and Birla Sunlife Dynamic Bond – Rs 5,500. Please let me know if this allocation is fine.

Anand

Kotak: Top Pick - 19th November 2012

Our analysts recommend :
 

Stock Name	JAIPRAKASH ASSOCIATES LTD
Recommendation	Accumulate
Target price	Rs.98
Current Market Price	Rs. 89.15
NSE symbol	JPASSOCIAT
BSE scrip code	JAIPRA

 

Result Update: Jaiprakash Associates Ltd

• Revenues of the company in Q2FY13 came in line with our estimates, led by better than expected revenues from the construction and real estate divisions. Company has demerged the south and west cement plants and transferred it to Jaypee Cement Corporation Ltd; so correspondingly it has restated financials of Q2FY12. perating margins in Q2FY13 stood strong at 26.5% and primarily led by strong margins in construction and real estate division.
• Net profit for the quarter was slightly ahead of our estimates led by better than expected operating margins.
• At current price of Rs 91, stock is trading at 27.7x and 24.8x earnings and 12.0x and 11.9x EV/EBITDA on FY13 and FY14 estimates respectively. We maintain our FY13 estimates and also introduce FY14 estimates. We had upgraded the stock to BUY in our last recommendation at Rs 68. Owing to limited upside from the current levels, we now downgrade the stock to ACCUMULATE with a revised price target of Rs 98 on FY14 estimates (Rs 87 earlier).
  
   

RR Research: Tara Jewels Ltd IPO note

Tara Jewels Ltd. is coming to raise Rs 179.50 Cr. through public issue. The Company intends to pursue selective strategic acquisitions and joint venture opportunities. The Company has reported strong income & profitability growth btw 2010-12....

 

Please follow the link below for further readings....

 

http://www.rrfinance.com/PDF_Files/Tara_Jewel.pdf

 

 

 

Thanks & regards

 

RR Information and Investment Research (P) Ltd.

Changing crude oil equation :: Business Line

India is JP Morgan's top BRIC market for 2013; underweight on China :: ET

SGX Nifty: 5,604.00 +9.00; Market to open UP today

SGX Nifty: 5,604.00 +9.00;
9:30 AM India time
20 Nov 2012
Market to open UP today