Everest Industries : Buy -Growing on Rural Theme::: Anand rathi

Everest Industries : Buy

CMP Rs. 245                                                 Reco: Buy                                                     expected value Rs. 344                                                     Nifty level 6003           

Growing on Rural Theme

Rural Indian markets offer huge opportunities for the company. Govt. thrust on rural India, different schemes, offers disposable income in a hand of villagers.  The liquidity in rural market, the bottom pyramid where the wealth is increasing offers sustainable growth of their building solutions segment which is contributing almost 75% in their total revenue.

In last 5 years EIL had done Capex of Rs. 150 Cr. which actually helped EIL to grow the revenue three-fold; from Rs.285.13 Cr. in FY 08 to Rs. 881.54 Cr. in FY 12, a CAGR of 33%.

Valuation

Growth is the function of two factors: how much one is reinvesting and at what rate?

We have used DCF approach to value EIL. EIL’s average reinvestment rate is around 61.92% and with 3 years average ROE of 20% combining both give us sustainable growth rate in net income of around 12%.

We expect EIL will maintain equity reinvestment rate (ERR) of around 61.2% for next 5 years with average ROE of 20%. We used cost of equity at 15% (Rf = 6.5% + Beta 1.2 * Risk Premium of 7%) for discounting purpose.

After 5 years we expect Cost of Equity will come down to 14.5% and growth will be around 8% (equivalent to 10 year G sec rate) which give us ERR will be 55% and combining both We derived an intrinsic value of Rs. 344 per share.

-- 

FII & DII trading activity on NSE and BSE 03-01-2013

Category		Buy	Sell	Net
		Value	Value	Value
FII		3089.48	1692.11	1397.37
DII		996.46	1902.42	-905.96

 

 

-- 

FII DERIVATIVES STATISTICS FOR 03-Jan-2013

FII DERIVATIVES STATISTICS FOR 03-Jan-2013
	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	29039	872.57	14559	440.00	263559	7966.01	432.57
INDEX OPTIONS	241763	7262.80	233670	6929.29	1302071	39221.38	333.51
STOCK FUTURES	30317	964.75	27598	908.07	976689	32143.69	56.68
STOCK OPTIONS	19086	569.86	21412	641.34	60565	1842.92	-71.48
						Total	751.28

-- 

NSE, Bulk deals, 03-Jan-2013

Date	Symbol	Security Name	Client Name	Buy / Sell	Quantity Traded	Trade Price / Wght. Avg. Price	Remarks
03-Jan-2013	ALPSINDUS	Alps Industries Ltd.	SUNSTAR SHARE BROKERS PRIVATE LTD	SELL	2,00,000	2.00	-
03-Jan-2013	AUTOIND	Autoline Industries Limit	BHAVANI PORTFOLIO PRIVATE LTD	SELL	81,500	140.50	-
03-Jan-2013	RIIL	Reliance Indl Infra Ltd	AXIS EQUITIES PRIVATE LIMITED	BUY	1,17,724	487.37	-
03-Jan-2013	RIIL	Reliance Indl Infra Ltd	AXIS EQUITIES PRIVATE LIMITED	SELL	1,17,724	487.68	-
03-Jan-2013	RIIL	Reliance Indl Infra Ltd	CROSSEAS CAPITAL SERVICES PVT. LTD.	BUY	1,63,512	487.02	-
03-Jan-2013	RIIL	Reliance Indl Infra Ltd	CROSSEAS CAPITAL SERVICES PVT. LTD.	SELL	1,63,512	488.36	-
03-Jan-2013	RIIL	Reliance Indl Infra Ltd	SHREE NAMAN SECURITIES & FINANCE PVT. LTD	BUY	1,22,302	489.74	-
03-Jan-2013	RIIL	Reliance Indl Infra Ltd	SHREE NAMAN SECURITIES & FINANCE PVT. LTD	SELL	1,18,741	490.24	-

BSE, Bulk deals, 03/01/2013

Deal Date Scrip Code Scrip Name Client Name Deal Type * Quantity Price ** 03/01/2013 526347 ACCLAIM IND STYLECHECK GARMENTS PRIVATE LIMITED S 54,175 10.72 03/01/2013 526347 ACCLAIM IND STYLECHECK GARMENTS PRIVATE LIMITED B 40,287 10.69 03/01/2013 532975 Aishwarya Tele REDDY GANGAVARAM RAMA MANOHAR S 200,000 12.1 03/01/2013 531519 Ankush Finstock VARMA RAMKUMAR B 44,165 16.92 03/01/2013 531519 Ankush Finstock RAJ KUMARI BATRA B 45,000 17.23 03/01/2013 531519 Ankush Finstock NAYAN GANGWAL S 30,067 17.23 03/01/2013 531519 Ankush Finstock NAYAN GANGWAL B 30,966 17.15 03/01/2013 590033 APW President GLOBE CAPITAL MARKET LIMITED S 39,718 209.24 03/01/2013 531467 Arnav Corp HOT N ICE ENTERTAINMENT PRIVATE LIMITED B 27,000 13.8 03/01/2013 531467 Arnav Corp HARRODS TRADING PRIVATE LIMITED S 52,000 13.8 03/01/2013 534564 Aseem Global RITA HIMANSHU SHAH S 61,114 45.94 03/01/2013 534564 Aseem Global RITA HIMANSHU SHAH B 61,114 45.93 03/01/2013 531568 Ashutosh Paper SURYA MEDI TECH LTD S 33,115 52.85 03/01/2013 531192 Associated Fin VIJAY KALRA B 50,000 41.49 03/01/2013 531192 Associated Fin MAHENDER PAL CHAWLA S 38,000 41.5 03/01/2013 512608 Bhandari Hos DHIREN ANANTRAI MODI S 74,000 44.01 03/01/2013 509499 Centron Indl NAZIA KHAN S 13,000 190.81 03/01/2013 531252 Farry Inds STYLECHECK GARMENTS PRIVATE LIMITED S 20,991 16.29 03/01/2013 531252 Farry Inds STYLECHECK GARMENTS PRIVATE LIMITED B 15,463 16.71 03/01/2013 521167 Frontline Bsns AAV ADVISORIES PRIVATE LIMITED S 50,000 206.64 03/01/2013 521167 Frontline Bsns POOJA JINESH BHATT S 72,244 204.74 03/01/2013 521167 Frontline Bsns POOJA JINESH BHATT B 73,989 204.83 03/01/2013 531137 Gemstone Invest JIGAR PRAFUL GHOGHARI B 468,600 15.3 03/01/2013 512585 Karma Ind YASH-V-JEWELS LIMITED S 187,000 3.39 03/01/2013 531206 Kwality Cred SEDURAM BHAGATRAM & CO PRIVATE LIMITED B 29,000 97.12 03/01/2013 531206 Kwality Cred ANIL KUMAR KHEMKA S 20,000 97 03/01/2013 505343 Monotype India NAVEEN KUMAR MEHTA B 16,000 258.46 03/01/2013 505343 Monotype India GATEWAY LEASING PVT LTD B 11,000 237.2 03/01/2013 507962 RAJATH FINAN RAJESH JAYANTILAL PATEL S 50,000 405 03/01/2013 507962 RAJATH FINAN NILIMA CHETAN MASHRU S 40,000 397.56 03/01/2013 507962 RAJATH FINAN CHETAN BHUPATRAI MASHRU S 25,000 407 03/01/2013 507962 RAJATH FINAN HIRENBHAI UMANGBHAI NATHWANI S 31,500 406.59 03/01/2013 507962 RAJATH FINAN TEJAS UMANGBHAI NATHVANI S 50,000 406.5 03/01/2013 507962 RAJATH FINAN LEENA INVESTMENTS CONSULTANCY LLP B 303,717 404.76 03/01/2013 507962 RAJATH FINAN HARSHAD POPATBHAI MALANI S 68,031 405 03/01/2013 531228 Rander Corp ANANYA AJAY MITTAL S 175,000 74.6 03/01/2013 531228 Rander Corp AJAY S MITTAL S 140,000 74.6 03/01/2013 523445 Reliance Indl Infra CROSSEAS CAPITAL SERVICES PRIVATE LIMITED S 163,601 487.33 03/01/2013 523445 Reliance Indl Infra CROSSEAS CAPITAL SERVICES PRIVATE LIMITED B 163,601 488.16 03/01/2013 523445 Reliance Indl Infra A K G SECURITIES AND CONSULTANCY LTD S 133,698 492.97 03/01/2013 523445 Reliance Indl Infra A K G SECURITIES AND CONSULTANCY LTD B 133,698 492.8 03/01/2013 511754 Shalibhadra Fin JIGNESHKUMAR HARSHVADAN GANDHI B 43,442 52.1 03/01/2013 531201 Shilchar Tech CUSTOM MAGNETICS INC S 170,000 42.9 03/01/2013 531201 Shilchar Tech SHAH FAMILY LLC S 170,000 43.3 03/01/2013 531201 Shilchar Tech RAJU KIRTI SHAH B 170,000 42.9 03/01/2013 531201 Shilchar Tech RAVI KIRTI SHAH B 170,000 43.3 03/01/2013 531695 SHREYCHEM REKHA MUKESH SHAH S 65,000 77.75 03/01/2013 531695 SHREYCHEM ARCADIA SHARE & STOCK BROKERS PVT. LTD B 65,000 77.76 03/01/2013 519586 SMILAX VAISHALI JIGNESH KANAKIA B 75,000 20.18 03/01/2013 532025 Sowbhagya Media NIPA CHETAN SHAH B 55,000 14.34 03/01/2013 513515 SR Inds PARMOD KARWA B 77,000 4.11 03/01/2013 513515 SR Inds AVN STOCK AND SECURITIES BROKER PRIVATE LIMITED S 78,601 4.11 03/01/2013 531499 Sybly Inds-$ PARVEEN KUMAR S 2,886,978 .49 03/01/2013 590111 VAISHNAVI PARVATHANENI VENKATA SIVA GANGADHARA RAO B 174,614 8.68 03/01/2013 503657 Veer Energy MANIBHADRA SHARES AND SERVICES PRIVATE LIMITED S 500,000 17.87 03/01/2013 503657 Veer Energy MANIBHADRA SHARES AND SERVICES PRIVATE LIMITED B 500,000 17.54 03/01/2013 503657 Veer Energy NIMIT JAYENDRA SHAH S 825,356 17.51 03/01/2013 503657 Veer Energy NIMIT JAYENDRA SHAH B 825,356 17.65 03/01/2013 521163 Zodiac Cloth INDIA CAPITAL OPPORTUNITIES ONE LTD S 203,701 175.03 03/01/2013 521163 Zodiac Cloth INDIA INSTITUTIONAL FUND LTD S 465,250 175.03 03/01/2013 521163 Zodiac Cloth INDIA CAPITAL FUND LTD S 1,840,873 175.03 03/01/2013 521163 Zodiac Cloth NEMISH SHANTILAL SHAH B 405,124 175 03/01/2013 521163 Zodiac Cloth AKASH MANEK BHANSHALI B 2,025,000 175

* B - Buy, S - Sell 
** = Weighted Average Trade Price / Trade Price 

IFFCL tax free bond- subscribe 0.61x Updated as on 03 Jan 2013 at 1700 hrs

INDIA INFRASTRUCTURE FINANCE COMPANY LIMITED
Sr. No	Category	No.of Bonds/NCDs offered/ reserved	No. of Bonds bid for	No of times subscribed
1	Category I	2250000	5907800	2.63
1(a)	Public Financial Institutions		200
1(b)	Scheduled Commercial Banks		5907600
1(c)	Provident Funds with minimum corpus of Rs.25 crores		0
1(d)	Pension Funds with minimum corpus of Rs.25 crores		0
1(e)	Insurance Companies registered with the IRDA		0
1(f)	National Investment Fund		0
1(g)	Mutual Funds registered with SEBI		0
1(h)	Alternative Investment Funds		0
1(i)	Multilateral and Bilateral Development Financial Institutions		0
1(j)	State Industrial Development Corporations		0
1(k)	Insurance Funds set up and managed by army/navy or air force of the Union of India		0
1(l)	Insurance Funds set up and managed by the Department of Posts		0
2	Category II	2250000	413069	0.18
2(a)	Companies and Bodies Corporate authorised to invest in the Bonds		413069
3	Category III	4500000	868650	0.19
3(a)	Resident Indian individuals more than Rs.10 lacs		868650
3(b)	Hindu Undivided Families more than Rs.10 lacs		0
4	Category IV	6000000	2009556	0.33
4(a)	Resident Indian individuals upto Rs.10 lacs		1931387
4(b)	Hindu Undivided Families upto Rs.10 lacs		78169
	Total	15000000	9199075	0.61
Updated as on 03 Jan 2013 at 1700 hrs