UBS :: Havells India - View weakness post Crompton results as buying opportunity

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UBS Investment Research
Havells India
View weakness post Crompton results as
b uying opportunity
􀂄 Event: Crompton consumer product weakness is company specific
Crompton Greaves (Crompton) reported a 2% YoY increase and 1% QoQ decline
in revenue in the consumer products division. As per Crompton management, this
is attributable to increased competition in the consumer products division and the
company’s price hike. Additionally, Crompton management has indicated that
demand has been strong in all products except for fans, where demand was weak
due to the mild summer. Our checks indicate the spending environment on white
goods and electrical appliances remains strong.
􀂄 Impact: we retain our estimates
We retain our estimates for Havells India (Havells).
􀂄 Action: we maintain our Buy rating
We maintain our Buy rating. We view the weakness in the share price as a buying
opportunity.
􀂄 Valuation: maintain Rs510.00 price target
We maintain our Rs510.00 price target. We derive our price target from a DCFbased
methodology and explicitly forecast long-term valuation drivers using
UBS’s VCAM tool.


􀁑 Havells India
Havells India (Havells), a leading Indian electrical consumer durables
manufacturer, is focussed on markets including switchgear, fans, lighting and
fixtures, and cables and wires. In April 2007, it acquired Sylvania's European,
Latin American, and Asian operations for 227m. Havells was incorporated in
1983.
􀁑 Statement of Risk
HVEL is present in market segments that may face increased competition from
competitors, which may hurt our revenue growth as well as margin assumptions.
HVEL derives 30% of its consolidated revenue from Europe. A severe
slowdown in Europe could hurt HVEL’s consolidated revenue and profits, in our
view.

UBS : Oil and Gas- Subsidy payout should favour upstream

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UBS Investment Research
India Oil and Gas
S ubsidy payout should favour upstream
􀂄 Event: we expect lower subsidy payouts in Q1 FY12 than actual
Q1 FY12 subsidy payouts should benefit upstream companies (ONGC, OIL and
GAIL), in our view. This is because we expect the upstream subsidy to be based on
the average of the full-year estimated under-recovery (we estimate Rs30bn at
Rs120bn pa in Q1) instead of actual Q1 (we estimate Rs40bn). This implies
downstream will be affected in Q1, but it should receive higher payouts in
subsequent quarters.
􀂄 Impact: OMCs losses to be higher in Q1, but decline in FY12
We expect full-year losses to be lower due to the recent price hike in June (end-
Q1). This should result in higher Q1 losses but lower losses for the rest of the year.
We forecast subsidy sharing at 38.7% for upstream, and upside if this is lower, ie,
at 33%. However, we are conservative at present as oil prices are high and show no
sign of cooling.
􀂄 Action: we prefer upstream to downstream companies
We expect phased reforms to favour upstream companies, and for the government
to reduce subsidies before allowing higher margins for downstream companies.
Our view is that downstream company losses are mainly due to lower margins (on
a full-year basis), and are opportunity losses and not operational losses. In the
present environment we do not expect higher margins, and we have Sell ratings on
BPCL and HPCL.
􀂄 Top picks: ONGC and GAIL
We believe our subsidy assumptions are conservative with upside available for
upstream companies. We have Buy ratings on ONGC and GAIL, although ONGC
may be affected by an overhang from FPO.

UBS India: Crompton Greaves- 1 Q FY12 conference call: key highlights

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UBS Investment Research
Crompton Greaves Ltd
1 Q FY12 conference call: key highlights
􀂄 Event: Crompton organised the 1Q FY12 results conference call today
The key highlights from the conference call are: a) the overseas business suffered
largely due to the volatile situation in the Middle East; b) the company is
witnessing more opportunity in traditional markets (Western Europe) and in areas
such as offshore wind transformers and distribution transformers; c) decline in
margins in the domestic power systems business is due to increased competition;
and d) the consumer products business has witnessed lower growth due to higher
inflation in India.
􀂄 Impact: FY12 margins will be under pressure
According to the company, full-year margins will be under pressure and EBITDA
could be in the range of 8-10% for FY12. This would mean a decline of 340bps
YoY even in the best-case scenario. The company highlighted that 2Q FY12 is also
likely to be a difficult quarter but the situation should improve in 2H FY12. On
sales, the company’s guidance is 10-12% YoY growth for FY12.
􀂄 Action: couple of good quarters for investor confidence to come back
We believe the key segments of power systems and consumer products have
disappointed in 1Q FY12. The power systems business is struggling in both the
overseas and domestic markets. Also, there is no clarity in the near term on the
revival of the consumer products business.
􀂄 Valuation: maintain Sell rating, price target of Rs240
We derive our price target of Rs240 from a DCF-based methodology and explicitly
forecast long-term valuation drivers using UBS’s VCAM tool. Our price target
assumes a WACC of 13.1%.

UBS :: LIC Housing Finance - Slow disbursements otherwise inline

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UBS Investment Research
LIC Housing Finance
S low disbursements otherwise inline
􀂄 Event: Weak Q1FY12 as expected
LICHF reported Net profit of Rs 2.56 bn (21% y/y) in line with estimates. Net
interest income came in slightly lower than estimates as NIMs contracted 67 bps
q/q. Provisions were higher as NPA increased mainly due to seasonal factors
however low expense ratio helped offset this. Individual disbursements growth was
weaker than expected at 15%y/y while corporate disbursements were down 80%
y/y (likely reluctance of management); this dragged overall disbursements which
grew 5%y/y even as loan portfolio grew 32% y/y,3% q/q.
􀂄 Impact: Maintain growth estimates
We expect disbursements growth to pick up and maintain our loan growth
estimates at 27%/24% for FY12/13 respectively. Management has become
selective in developer financing and there corporate disbursements will be lower
than FY11. However 20% growth in individual disbursements which is at lower
end of management guidance is sufficient to drive overall 27% growth in loans.
􀂄 Action: Sell as valuations leave little upside
LICHF has been one of the best performing financial stocks YTD and is currently
trading at 2.1xFY12 book which is at a significant premium to its history and looks
fair in our view. Growth momentum could be at risk with higher interest rates,
withdrawal of popular fixed rate product and weakening demand.
􀂄 Valuation: Maintain PT Rs 200
We value the stock using residual income method at Rs200 which implies 1.9x
FY12E book and 8x FY12earnings.

SUBSCIRBE to L&T Finance Holding Ltd. - IPO Note ::Unicon

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L&T Finance Holding Ltd. – IPO Note

L&T Finance Holdings Ltd. (L&THF) offers diverse range of financial products and services across the corporate, retail and infrastructure finance sectors, as well as mutual fund products and investment management services, through direct and indirect wholly-owned subsidiaries. The company has presence in 23 states in India.

Investment Rationale 

Diversified and balanced mix of high growth businesses: The companies diversified presence in various product line, catering to the needs of a diverse customer base, from construction equipment hirers, truck owners, farmers and shopkeepers and large infrastructure developers and companies, including multi-national corporations.

Strong distribution network, with presence throughout India: Its extensive network enables them to maintain and grow business, diversify risk profile and service and support customers from proximate locations, thus providing customers with convenient access to products and services.

High quality loan portfolio: For each of businesses, they have established a strong credit check and asset valuation framework to evaluate and monitor credit risk at the time of origination. The recovery process is tailored specifically to each of lines of business and is not outsourced, which allow them to directly control the slippages improving its asset quality.

Good financial and capital position, as well as access to multiple sources of capital: CARE has assigned a ‘Grade 5’ to the L&T Finance Holdings Ltd IPO which indicates ‘Strong Fundamentals’. L&TFH with CARE rating of AA+ and an ICRA rating of LAA+ & status as a Public Financial Institution (PFI) can access new sources of funds (such as insurance companies, public trusts and pension funds) easily and at competitive rates going forward.

Concerns

It faces asset-liability mismatches which could expose it to interest rate and liquidity risks.

Any changes in regulatory requirement for NBFCs by RBI may impact its business.

Outlook & Valuation

In terms of valuation, the issue is offered at 2.4x and 2.1x its book value at upper and lower price band respectively. Other stocks within the same sector currently trades in the range of 2x-3x. The regulatory risks in the sector and the other macro factors are concerns, but we believe with diversified credit portfolio, better accounting norms L&T Finance can weather these issues better than its peers. Considering promoter’s leadership position in the market, visible brand, better operational parameters & diversified credit portfolio, we expect L&TFH can command higher premium going ahead. SUBSCIRBE

Thanks & Regards

Unicon Wealth Research

UBS :: IRB Infrastructure Developers- Robust construction segment performance

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UBS Investment Research
IRB Infrastructure Developers
R obust construction segment performance
􀂄 Q1FY12 - Beats expectations; robust execution/margins in construction
IRB reported Q1FY12 revenues of Rs8bn (+57% y/y), operating profit of Rs3.3bn
(+32% y/y, UBS-e Rs3bn) and PAT of Rs1.3bn (+14% y/y, UBS and consensus
estimate of Rs1.1bn). Excluding derivative contract related losses of Rs60m, PAT
would be Rs1.4bn. The beat was led by higher-than-expected revenues and
margins in the construction business. The BOT segment operating profit was inline
with our expectations (toll revenues were slightly higher while margins were
slightly lower). Tumkur-Chitradurga project started tolling in June this quarter.
􀂄 Mumbai-Pune traffic grows ~5% YoY in Q1; pick-up in Bharuch-Surat
Mumbai-Pune traffic growth was 5.1% (4.9% in Q1FY11). Traffic growth was
higher-than-expectations (we forecast 5-7% across assets) at 8-9% in some of the
key stretches of Thane-Bhiwandi, Pune-Nasik and Bharuch-Surat (highest YoY
growth so far) in our estimate. Surat-Dahisar traffic growth was about 2%. While
traffic declined in our estimate by 2-4% in some of the other roads like Nagar-
Karmala, Pune-Solapur and Thane-Godbunder.
􀂄 Construction segment EBITDA margins at ~23%; revenues up 83% y/y
Margins in the construction business continue to remain robust (UBS-e of ~18%
for FY12 and beyond; FY09/10/11 has been 16%/17%/23%). Visibility remains
high given the large order backlog of ~Rs91bn (~4x 1-yr forward revenues).
􀂄 Valuation: Buy rating, SOTP-based PT of Rs225
IRB is well-positioned to leverage sectoral growth opportunities (pls refer our note
India Infrastructure: Positive momentum in power and roads dated 30-Jun-11).

UBS -Dish TV India- Strong growth momentum to continue

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UBS Investment Research
Dish TV India
S trong growth momentum to continue
􀂄 Event: Dish TV reported Q1 standalone results, conference call takeaways
Revenues grew 6% QoQ to Rs4,604m vs. UBS estimate of Rs4,734m. The
EBITDA margin expanded 350bps QoQ to 24.4% vs. UBS estimate of 22.1%. Net
loss declined from Rs370m in Q4 FY11 to Rs183m vs. UBS estimate of Rs249m.
Key takeaways from the conference call are: 1) the increase in ARPU during Q4
FY11 was significant partly due to the World Cup. Dish TV management expects
ARPU to start increasing from Q2; and 2) Dish TV has maintained its earlier FY12
guidance—subscriber addition at 3-3.5m subs, content costs to increase 10-12%.
􀂄 Impact: raise PT to Rs110; raise FY12-13 earnings estimates 7-10%
We have marginally lowered our FY12 ARPU forecast from Rs162 to Rs160 (vs.
company guidance of Rs160-165 for Q4 FY12). We raise our price target from
Rs100 to Rs110 as we raise our FY12-13 EBITDA margin assumptions by 100-
150 bps to 26.5% and 28.5%, respectively (Dish TV has achieved 24.4% in Q1).
􀂄 Action: remain +ve on Dish TV—a pure play on growing DTH subs base
Dish TV is a play on India’s fast-growing DTH subscriber base led by rising
income levels, increasing consumer awareness, a sports-heavy calendar, and a low
entry price for new connections. We believe potential catalysts include: 1) strong
financial and operating performance; 2) implementation of mandatory digitisation;
3) likely reduction in license fee; and 4) implementation of goods and service tax
(GST) or rationalisation of tax structure given the DTH industry is heavily taxed.
􀂄 Valuation: Buy rating with DCF-based PT of Rs110
We derive our price target from a DCF-based methodology and explicitly forecast
long-term valuation drivers using UBS’s VCAM tool. We assume a WACC of
12.6%.

UBS :: United Breweries - Good times ahead ; price target of Rs650.00

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UBS Investment Research
United Breweries
G ood times ahead
�� Kingfisher: India’s No.1 beer; best exposure to rising disposable income
We initiate coverage of United Breweries (UBL), the maker of India’s most
popular beer— Kingfisher—with a Buy rating and a price target of Rs650.00. We
believe UBL provides one of the best exposures to rising disposable income and
changing social norms in India.
�� Changing dynamics are key triggers
We estimate the price elasticity of beer is 1.7x, based on the impact of changes in
price and volume in 2009, when tax increases resulted in sales fluctuations. In
April 2011, the government of Karnataka raised the tax on spirits while
maintaining tax on beer—the first time there were different tax rates on different
alcoholic beverages. We believe the lower tax rate for beer will be the catalyst for
growing consumption and, like Titan, UBL should benefit from rising consumption
in India.
�� Improving fundamentals
We expect UBL’s profitability to increase as its breweries achieve scale. UBL’s
revenue mix is improving, with increasing contributions from profitable states and
faster sales of premium products. We forecast a PAT CAGR of 52% for FY11-14.
We believe UBL deserves to trade at a premium to its peers, because of: 1) high
price elasticity; 2) its dominant market share (56%); and 3) Heineken and UB
Group’s complementary ownership.
�� Valuation: Buy rating and a price target of Rs650.00
We derive our price target from a DCF-based methodology and explicitly forecast
long-term valuation drivers using UBS’s VCAM tool. We assume a WACC of
12.4% and an interim growth rate of 14%. At our price target, the stock trades at
23.8x FY13E EV/EBITDA.


Investment Thesis
We initiate coverage of United Breweries (UBL) with a Buy rating and a price
target of Rs650.00. We believe UBL provides one of the best exposures to India’s
young population and their increasing incomes and changing social norms.
With a 56% share, UBL is the market leader in the beer category in India. The
company’s brand, Kingfisher, is the world’s #1 Indian beer brand. United
Spirits, a spirits manufacturer and a group company, strengthens UBL’s
distribution network as both spirits and beer are retailed through the same
distribution network.
With 1.7x price elasticity (our estimate), beer is sensitive to state level tax
increases. A few states in south India have liberalised retail beer licences
recently and this has led to an increase in the number of retail outlets that stock
beer. Further, in April 2011, the state government of Karnataka raised the tax on
spirits, while maintaining the tax on beer at the same level—the first time a state
government has imposed different tax rates on different alcoholic beverages.
Lower tax rates for beer will be a key catalyst for beer consumption in India, in
our view.
Heineken owns 38.7% of UBL—the fastest growing associate company within
the Heineken group. We believe Heineken helps UBL with its superior brewing,
marketing and logistics expertise; a good fit with UB Group, given the latter’s
capabilities.
We expect UBL to benefit from: its pricing power (because of its dominant
market share); the issuance of more licences in some states; and the rising
propensity to spend—factors that are driving the sale of premium products.
Based on our comparison of beer consumption in China and India over the past
decade (34.2 litres/pa in China compared with 1.4 litres/pa in India), we believe
there is scope for exponential volume growth in India.
Key catalysts
Maintaining high volume growth: We expect strong growth in UBL’s beer
sales volume because of improving affordability and discretionary spending and
favourable demographics in India. UBL dominates the beer segment in India and
its portfolio includes products with different prices. Our India beer market model
suggests a sales volume CAGR of 15% over the next five years.


Better product mix and margins: UBL’s Kingfisher Ultra and Kingfisher
Premium brands are targeted at customers in the high and middle income group.
The growing numbers of consumers in the higher price segments would enhance
the product mix. Further, UBL’s performance in the states of Andhra Pradesh
Karnataka, Maharashtra, and Tamil Nadu are key to higher profitability, as these
states together account for around 32% of UBL’s sales volume.
Liberalisation of prices and retail distribution by state governments: A few
states in south India have liberalised retail beer licences and this has led to an
increase in the number of retail outlets that stock beer. Further, in April 2011, the
government of Karnataka increased the tax on spirits, while maintaining the tax rate
on beer, the first differentiation of its kind. Different taxation rates for different
alcoholic beverages will be a key catalyst for beer consumption, in our view.
Positive response to Heineken in India: According to UBL management,
Heineken beer will be launched in India in Q2. The beer will be priced at a
premium to Kingfisher Ultra—UBL’s premium product. We believe a successful
launch of Heineken beer will be a positive catalyst for UBL’s share price, as it
will help establish the Heineken-UB partnership at different price levels in the
beer market.
Softening energy price: While UBL’s margins are highly sensitive to volume
growth, a reduction in the price of glass bottles will have a meaningful impact
on margins. Glass constitutes 42% of COGS, and a 10% reduction in energy
prices would lower the cost of glass by 4-5%.
Risks
We believe the risks to our estimates include: 1) government intervention;
2) unreasonably high competition; 3) a limited target market; 4) substitution by
spirits; and 5) high debt at the group level; and 6) consumers’ increasing health
consciousness.
Valuation and basis for our price target
We initiate coverage of UBL with a Buy rating and a 12-month price target of
Rs650.00. We derive our price target from a DCF-based methodology and
explicitly forecast long-term valuation drivers using UBS’s VCAM tool. Our
key assumptions are a WACC of 12.4%, beta of 1.09, and an interim growth rate
of 14%.


􀁑 United Breweries
United Breweries has a 56% share of the beer market in India. Heineken holds
38.7% of United Breweries and UB Group 37.5%. The company's flagship
brand 'Kingfisher' is the most popular Indian beer brand globally. As state
governments do not allow the inter-state movement of alcoholic beverages, UBL
owns 18 breweries and operates nine contract manufacturing facilities.
􀁑 Statement of Risk
State governments can increase taxes on beer and this could make a significant
difference to business dynamics, as taxes constitute around 45% of the price for
beer consumers. We expect the youth in India to move from drinking spirits to
drinking beer and softer beverages. The risk is that this change is slower than we
anticipate. Another risk is increasing health consciousness among consumers.

HDFC Bank - Q1FY12 Result Update ::Unicon

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HDFC Bank Q1FY12 Result Highlights

Ø  HDFC Bank (HDFCB) delivered another strong quarter growth, with net profit increasing by 33.7% to INR 10.8 Bn YoY. This was supported by strong loan growth of 29.1% YoY to INR 1.76 Tn. Deposits grew 15.4% YoY to INR 2.11 Tn, while the CASA ratio stood at 49.1%.

Ø  In Q1FY12 net interest income grew by 18.6% YoY to INR 28.48 Bn supporting core net interest margins (NIMs) which were stable at 4.2% on account of increasing advances and stable CASA. Going forward, margins are likely to remain stable within the range 3.9% to 4.3%.

Outlook & Valuation

Going forward, HDFC Bank is expected to keep ~24% of credit growth & also expected to maintain the CASA ratio at ~50%. On the back of continuous growth momentum, strong business & credit growth, improvement in asset quality & strong capital adequacy, HDFC bank commands a premium in its valuations. At the CMP stock trades at 4.1x its FY12E book value. We have HOLD rating on the stock for a target price of INR 520.

Commodities Comment --Diverse strength in 1H steel output ::Macquarie Research

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Commodities Comment
Diverse strength in 1H steel output
Feature article
 We review 1H11 steel production data. The 11% sequential rise in output over
this period highlights ongoing strength in the global steel economy across
almost all regions. Furthermore, a Japan-induced alteration to the industrial
cycle and shortage of long product inventory in China are likely to result in
3Q11 showing further acceleration in YoY growth rates.
Latest news
 Base metals sold off in Wednesday‟s LME trading, with the feeling that the
recent rally was perhaps slightly premature, driving some profit-taking. Lead
fell 2.8% to $1.21/lb, while silver dropped 4.3% to back below $40/oz.
 McCloskey‟s has reported that coal shipments from Indonesia hit an all-time
record in May of 23.05mt, up dramatically from the 19.68mt shipped in April.
With sub-bituminous coal in the money on a delivered Southern China basis
during the month, unsurprisingly China accounted for much of the rise, with
exports up to 6.08mt in the month from 4.29mt in April. We would note that
actual exports are higher than that contained within the shipping data. Over
2011 as a whole we expect 294mt of Indonesian exports, up 3.6% YoY.
 BHP Billiton will roll over prices for manganese ore for shipments in August
from current levels for July, leaving medium-grade (43%–44% Mn) lump
unchanged for the fourth month in a row at $5.30/dmtu CIF China. Prices for
manganese ore had fallen steeply from peak levels of well over $8/dmtu in
May/June 2010, but prices now appear to have found a floor. Indeed, we
understand that prices in the spot market have picked up modestly (typically
~10–20c/dmtu) over the last month or so, with China's crude steel production
running near all-time record levels. However, we are not expecting any
substantial price rise in the short term, with stock levels at some points along
the supply chain still high but at least now starting to fall.
 BHP Billiton's iron ore sales increased by 8% QoQ to 35.6mt in Q2 CY11,
despite a train derailment during the period, and its RGP4 Pilbara sales finally
reached full capacity of 155mt annualised. Meanwhile, met coal sales
increased by one-third on the same comparison to 8.2mt, following weatherrelated
disruptions in 1Q11. Copper production was flat from 1Q–2Q11 at
272,000t, but this was better than many in the market had been anticipating.
Output of manganese ore also increased, climbing 2% QoQ to 7.1mt (60%
attributable basis), which marked a new record.
 The IAI's latest data show global average primary aluminium production rose
by 5% YoY to 69,900tpd. Year to date (January–June) average production is
running at a rate of 69,700tpd, which marks a rise of 6% from the
corresponding period of 2010.
 The latest ten-day data from the China Iron and Steel Association shows
crude steel output during the first ten days of July was 1.955mt/day, or
714mtpa. This was down 3.1% sequentially, with scheduled maintenance at
several mills, but remains extremely strong as discussed in the feature article.
 The State Administration of Taxation in China has confirmed that the draft
document for changes to the pilot resources tax in Xinjiang amends the
measurement from “quantity basis” to “value basis” and will extend from oil
and gas to other energy goods, such as coal.

YES Bank - Q1FY12 Result Update -Unicon

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YES Bank - Q1FY12 Result Update

Ø  YES Bank (YES) delivered another strong quarter, with net profits increasing by 38.2% to INR 2163 Mn on YoY basis. This was contributed by higher net interest income (NII) of INR 3.5 bn (35% YoY) & non interest income grew by 15% to INR 1.65 Bn on YoY basis. Growth in the non interest income was led by transaction banking (INR 420 Mn), financial advisory (INR 829 Mn), financial markets (INR 247 Mn) and branch banking fees & others (INR 157 Mn).

Ø  The major highlights were deposits registered a healthy growth of 44.1% along with advances growing by 26.1% on YoY basis. Current and Savings Account (CASA) deposits grew by 49.8% to INR 47.64 bn taking the CASA ratio to 10.9% Q1FY12 from 10.3% in Q4FY11.

Outlook & Valuation

YES Bank has been able to register strong business growth, profitability with stable margins & strong asset quality. Additionally the bank is expanding ~125 branches every year, which would help to improve its CASA ratio to 15% in FY12E. We remain positive on long term prospects of the bank. At the CMP stock trades at 1.9x of its FY12E Book Value. We maintain BUY rating on the stock for target price of INR 420.

Thanks & Regards

Unicon Wealth Research

India Mkt Recap - Vishal N Dangaich

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* INDICES: Sensex 18,871(+148), Nifty 5,680(+46), CNXMCAP 8,214(+61).
* VOLUMES: NSE $2.58bn(11,470), BSE $0.66bn(2,959cr), F&O $34.98bn(1,55,299cr)
* AVERAGE 10 DAYS MKT VOL: NSE $2.27bn (10,094) BSE $0.62bn (2,773)
                          F&O $25.14bn(1,11,618).
* SECTORS: REALTY +0.85%  METAL +1.17%   BANKEX +0.82%   POWER  +0.71%
           AUTO +1.38%  CAP.GOODS +1.23% PHARMA +1.22%  IT +0.03%.
* ADV-DEC RATIO : BSE500 Index 308 Advances & 181 Declines.
* INDEX GAINERS : RCOM +15%, BHARTIARTL +5%, M&M +3%, HINDALCO & STER +2%,
                  MARUTI, RELINFRA, LT, JPA & DLF +1%.
* INDEX LOSERS  : CIPLA & ITC -1%.

* TOP 5 VOLUMES : BHARTIARTL, RIL IND, SBI, RCOM & AMRUTANJAN.

* MAJOR BLOCKS  : 1) ANDRA BANK          12,35,582 @  138.95,
                  2) CASTROL              3,00,000 @  541.00,
                  3) TCS                  1,98,000 @ 1127.00,
                  4) VA TECH              4,91,271 @ 1400.00,

* BSE500 GAINERS: KWALITY DAIRY +10%, MTNL +9%, IDEA CELL +8%, REI SIX TEN
                  STER TECH & OBC +7%, TATA COMM, RALLIS IND, BHARTIARTL +5%.
* BSE500 LOSERS : GSPL, PRAJ IND, PATNI COMP, BAJAJ ELEC, ALSTROM PROJ,
                  GODREJ CONS, TATA ELXSI, BANK INDIA, JK CEMENTS & SASKEN -3%.

* FII INVESTMENT FROM 1st JAN 2011 to 21st JULY 2011: $ +2.01bn.

KIFS Result update of UBI-DB Corp-Enil-Allahabad-Axis-Colgate

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KIFS Result update of:

UNION BANK

OVERVIEW

With a pan India reach with 3015 branches and 2634 ATM’s, Union Bank is also one of the most technologically advanced public sector banks. The bank has currently more than 27000 employees and is implementing a HR restructuring. The net profit per employee has grown almost 3 times since FY06 from Rs 2.66 cr to Rs 7.5 cr in FY11. With the implementation of CBS for all its branches in FY 08, gross profit per branch has increased almost 2 times from Rs 70 lakhs in FY06 to Rs 1.43 cr in FY 11.

Key highlights:

· Total income grew by 31% Y-o-Y to Rs.5400 cr. v/s Rs. 4121 cr in June-10

· Operating Profit grew by 12% Y-o-Y to Rs. 1166 cr.  v/s Rs. 1044 cr in June-10

· Net profit fell by a whopping 23% Y-o-Y to Rs. 464 cr. v/s Rs. 601 cr in June-10

· Gross NPA’s grew by 38 bps Y-o-Y to 2.57%  v/s 2.19% in June-10

· Net NPA’s grew by 38 bps Y-o-Y to 1.32%  v/s 0.94% in June-10

DB CORP

OVERVIEW

DB Corp is India’s largest print media company and home to flagship news papers Dainik Bhaskar, Divya Bhaskar and DNA (English) among others. It also operates FM radio stations in 17 cities under the brand name My FM. DB Corp Ltd. is the largest print media group amongst national dailies, with 18.1 million readers as revealed by the IRS survey of Q1 2011. Dainik Bhaskar is the No. 1 Newspaper of urban India in Average Issue Readership (AIR). DB Corp is a leader in Madhya Pradesh, Chattisgarh, Chandigarh, Haryana, Punjab, Rajasthan and Gujarat, its core area of operations.

Key highlights:

· Total income grew by 23% Y-o-Y to Rs. 353 cr. v/s Rs. 288 cr in June-10

· Operating Profit fell by 12% Y-o-Y to Rs. 106 cr.  v/s Rs. 120 cr in June-10

· OPM fell by 1161 bps Y-o-Y to 30.07%  v/s 41.68% in June-10

· Net profit fell by 14% Y-o-Y to Rs. 63 cr.  v/s Rs. 73 cr in June-10

· NPM fell by 753 bps Y-o-Y to 17.98% v/s 25.51% in June-10

· Raw Material Cost increased sharply by 44% Y-o-Y

ENIL

OVERVIEW

ENIL Operates in the radio broadcasting segment, out-of-home media segment and experiential marketing segment. With 'Radio Mirchi' being the No.1 Radio brand in the private FM space it has network across 14 states with 32 stations and more than 41 million listeners across all its stations. The Govt. has approved phase III licensing for FM stations in India. Phase III will open up expansion potential for FM radio to additional 227 towns boosting growth for radio advertising. ENIL seems well placed to take advantage of opening up of this new market.

Key highlights:

· Total income grew by 10% Y-o-Y to Rs.63 cr. v/s Rs. 58 cr in June-10

· Operating Profit grew by 73% Y-o-Y to Rs. 16 cr.  v/s Rs. 9 cr in June-10

· OPM grew by 947 bps Y-o-Y to 25.92%  v/s 16.45% in June-10

· Net profit grew by 124% Y-o-Y to Rs. 10 cr.  v/s Rs. 4 cr in June-10

· NPM grew by 778 bps Y-o-Y to 15.27%  v/s 7.49% in June-10

ALLAHABAD BANK

OVERVIEW

Having 2415 branches and 200 ATM’s with major concentration of branches in West Bengal, Bihar and UP, Allahabad Bank plans to add another 155 branches and 500 ATM’s by FY 12. The bank will be opening up these new branches in new CASA rich regions of Southern and Western India. The bank also plans to increase the fee based component of revenues by launching new products and services for NRI clients and bullion trading. Allahabad bank enjoys a higher than industry average NIM of 3.38% due to low cost deposits with a CASA ratio of over 33%.

Key highlights:

· Total income grew by 42% Y-o-Y to Rs.3836 cr. v/s Rs. 2702 cr in June-10

· Operating Profit grew by 26% Y-o-Y to Rs. 890 cr. v/s Rs. 705 cr in June-10

· Net profit grew by 20% Y-o-Y to Rs. 418 cr.  v/s Rs. 347 cr in June-10

· Gross NPA’s grew by 12 bps Y-o-Y to 1.62%  v/s 1.50% in June-10

· Net NPA’s grew by 19 bps Y-o-Y to 0.60%  v/s 0.41% in June-10

AXIS BANK

OVERVIEW

With a strong branch network expansion CAGR of 33% from 2004-11, Axis Bank is on a tipping point to capture a large part of the Indian financial services market. NII and fee based income for the bank has grown at a CAGR of 45% and 44% respectively in the last five years. Axis bank has over 1390 branches and extension counters and over 6270 ATM’s. With the use of high end technology, Axis Bank has been to service large corporate clients for cash management services. Axis Bank is also a dominant player in placement and syndication of debt issues. New frontiers are expected to open up and push the savings deposit CAGR of 35% achieved in last 5 years higher.

Key highlights:

· Total income grew by 40% Y-o-Y to Rs.6049 cr. v/s Rs. 4326 cr in June-10

· Operating Profit grew by 7% Y-o-Y to Rs. 1558 cr.  v/s Rs. 1450 cr in June-10

· Net profit grew by 27% Y-o-Y to Rs. 942 cr.  v/s Rs. 742 cr in June-10

· Gross NPA’s fell by 7 bps Y-o-Y to 1.06%  v/s 1.13% in June-10

· Net NPA’s fell by 4 bps Y-o-Y to 0.31%  v/s 0.35% in June-10

COLGATE PALMOLIVE

OVERVIEW

Colgate is a leading company in oral care– toothpaste segment. It has manufacturing facilities at Aurangabad (Maharashtra), Goa and Baddi (Himachal Pradesh). The company sells its products In around 200 countries and has global brands like "Colgate", "Mennen", "Palmolive", "Ajax", "Softsoap" and "Hill’s Pet Nutrition" in its stable. The company caters approximate 53% market share in domestic oral care market.

Key highlights:

· Total income grew by 14% Y-o-Y to Rs. 629 cr  v/s Rs. 550 cr in June-10

· Operating Profit fell by 11% Y-o-Y to Rs. 148 cr. v/s Rs. 165 cr. in    Jun-10

· OPM fell by 663 bps   Y-o-Y to 23.44 % v/s 30.07 % in June-10

· Net profit fell by 18% Y-o-Y to Rs. 100 cr.  v/s Rs. 122 cr. in June-10

· NPM fell by 623 bps       Y-o-Y to 15.96 % v/s 22.19 % in June-10

FII DERIVATIVES STATISTICS FOR 25-Jul-2011

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FII DERIVATIVES STATISTICS FOR 25-Jul-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	105424	2971.80	102329	2892.65	425987	12065.08	79.15
INDEX OPTIONS	334666	9477.29	315764	8925.24	1557726	44242.76	552.05
STOCK FUTURES	219638	6302.93	229664	6593.68	1238038	35339.08	-290.75
STOCK OPTIONS	10155	275.03	10022	269.66	41196	1190.55	5.37
						Total	345.83

 

BSE, Bulk deals, 25/7/2011

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Deal Date	Scrip Code	Company	Client Name	Deal Type *	Quantity	Price **
25/7/2011	512161	8KMILES	VIJAY BABULAL SHAH	B	40000	48.75
25/7/2011	512161	8KMILES	PADMANABHAN RAGHAVAN	S	40020	48.75
25/7/2011	530027	Aadi Inds	GUINESS FINANCE & LEASING PRIVATE LIMITED	S	112000	15.94
25/7/2011	531681	Amradeep Inds	MONAL Y THAKKAR	S	490000	9.04
25/7/2011	590006	Amrutanjan Health-$	CHANDARANA INTERMEDIARIES BROKERS PRIVATE LIMITED	B	74353	941.71
25/7/2011	590006	Amrutanjan Health-$	EUREKA STOCK & SHARE BROKING SERVICES LTD	B	46274	952.95
25/7/2011	590006	Amrutanjan Health-$	A K G SECURITIES AND CONSULTANCY LTD	B	358487	947.37
25/7/2011	590006	Amrutanjan Health-$	CROSSEAS CAPITAL SERVICES PRIVATE LIMITED	B	173556	948.10
25/7/2011	590006	Amrutanjan Health-$	RKSV SECURITIES INDIA PRIVATE LIMITED	B	40767	925.49
25/7/2011	590006	Amrutanjan Health-$	R M SHARES TRADING PRIVATE LIMITED	B	62030	940.72
25/7/2011	590006	Amrutanjan Health-$	R M SHARES TRADING PRIVATE LIMITED	S	62030	940.95
25/7/2011	590006	Amrutanjan Health-$	RKSV SECURITIES INDIA PRIVATE LIMITED	S	40767	925.26
25/7/2011	590006	Amrutanjan Health-$	CROSSEAS CAPITAL SERVICES PRIVATE LIMITED	S	173556	948.28
25/7/2011	590006	Amrutanjan Health-$	A K G SECURITIES AND CONSULTANCY LTD	S	358487	947.64
25/7/2011	590006	Amrutanjan Health-$	EUREKA STOCK & SHARE BROKING SERVICES LTD	S	46274	953.27
25/7/2011	590006	Amrutanjan Health-$	CHANDARANA INTERMEDIARIES BROKERS PRIVATE LIMITED	S	74353	943.04
25/7/2011	590059	APL APOLLO	ANUPAMA GARG	S	180000	165.78
25/7/2011	505029	Atlas Cycle	A K G SECURITIES AND CONSULTANCY LTD	B	21148	432.11
25/7/2011	505029	Atlas Cycle	CROSSEAS CAPITAL SERVICES PRIVATE LIMITED	B	19641	430.10
25/7/2011	505029	Atlas Cycle	CROSSEAS CAPITAL SERVICES PRIVATE LIMITED	S	19641	431.17
25/7/2011	505029	Atlas Cycle	A K G SECURITIES AND CONSULTANCY LTD	S	21148	431.97
25/7/2011	531591	Bampsl Sec	SURENDRA KUMAR GUPTA	B	1063601	2.02
25/7/2011	531591	Bampsl Sec	BHAGWAN SAHAI KHANDELWAL	S	1217456	1.99
25/7/2011	524606	Beryl Drugs	SAURABH BHARAT MEHTA	B	51000	33.27
25/7/2011	524606	Beryl Drugs	SEAHORSE MERCANTILE COMPANY PRIVATE LIMITED	S	75478	32.51
25/7/2011	533469	BIRLAPACIFIC	V P PATEL	S	1463790	18.34
25/7/2011	531923	Dhampure Spec	DHARMENDRA RIKHANCHAND SHAH HUF	S	68703	22.75
25/7/2011	533400	FUTURE VENT	YADU HARI DALMIA	B	10000000	9.80
25/7/2011	533189	Goenka Diamond	V P PATEL	B	250000	56.50
25/7/2011	533189	Goenka Diamond	PRIMUS REAL ESTATES PRIVATE LIMITED	S	250000	56.50
25/7/2011	530469	GSL Securities	ARANIK SECURITIES PRIVATE LIMITED	B	31831	6.23
25/7/2011	530469	GSL Securities	RAJEN JAWAHARLAL SHAH	S	23487	6.25
25/7/2011	524754	Gujarat Medi	SUNNY RASHMIKANT THAKKAR	B	63400	35.40
25/7/2011	524754	Gujarat Medi	JUHI RAKESH VAKIL	S	63400	35.40
25/7/2011	531777	Intellvisions-$	MERRILL LYNCH CAPITAL MARKETS ESPANA SA SV	S	67792	21.68
25/7/2011	530165	Kanchan Intl	DHARMENDRA HARILAL BHOJAK	B	19220	88.04
25/7/2011	526947	La Opala RG	CROSSEAS CAPITAL SERVICES PRIVATE LIMITED	B	59020	111.53
25/7/2011	526947	La Opala RG	CROSSEAS CAPITAL SERVICES PRIVATE LIMITED	S	59020	110.77
25/7/2011	590117	Mahaveer Infoway-$	MILKWAY MERCANTILES PRIVATE LIMITED	B	85607	14.97
25/7/2011	590117	Mahaveer Infoway-$	SANGITA SANDEEP MERCHANT	B	47349	15.20
25/7/2011	590117	Mahaveer Infoway-$	TRIMURTHI ADVISORY SERVICES (P) LTD.	B	35100	15.14
25/7/2011	590117	Mahaveer Infoway-$	MAYUR NARAYANDAS DARJI	S	33713	15.16
25/7/2011	590117	Mahaveer Infoway-$	NARESH BHOJWANI	S	44500	15.15
25/7/2011	590117	Mahaveer Infoway-$	MILKWAY MERCANTILES PRIVATE LIMITED	S	66469	15.32
25/7/2011	590117	Mahaveer Infoway-$	SANGITA SANDEEP MERCHANT	S	48720	15.33
25/7/2011	532999	NEXTGENT	V P PATEL	B	3215633	8.00
25/7/2011	532999	NEXTGENT	PRIMUS REAL ESTATES PRIVATE LIMITED	S	1300100	8.00
25/7/2011	532999	NEXTGENT	MUKUND MOTOR PARTS PVT LTD	S	938500	8.00
25/7/2011	532999	NEXTGENT	LIVE STAR MARKETING PVT LTD	S	558000	8.00
25/7/2011	532999	NEXTGENT	AARKEN ADVISORS PVT LTD	S	700000	8.01
25/7/2011	512626	Orbit Exports	PRANALI COMMODITIES PRIVATE LIMITED	B	100000	100.00
25/7/2011	512626	Orbit Exports	RAMRAKH RAMPRATAP BOHRA	S	81952	100.08
25/7/2011	530173	Oscar Global	SANJAY H SARAWAGI	S	18600	9.39
25/7/2011	500329	Pentamedia Grap	PAYAL GUPTA	B	89651	1.28
25/7/2011	513403	PM Telelinnks	JAGDISH RAMANLAL PATEL	B	99500	35.09
25/7/2011	513403	PM Telelinnks	VIPUL VIRENDRAKUMAR PATEL	B	52500	35.05
25/7/2011	513403	PM Telelinnks	PARESH RAMJIBHAI CHAUHAN	B	52500	35.05
25/7/2011	513403	PM Telelinnks	PINALBA JAYENDRASINH CHUDASAMA	S	138150	35.08
25/7/2011	513403	PM Telelinnks	CHUDASAMA GAURANG GHANDHAMSINGH	S	70981	35.01
25/7/2011	531207	Raymed Labs	GIANCHAND DEMBLA	S	22500	39.48
25/7/2011	533470	RUSHIL DECOR	A K G SECURITIES AND CONSULTANCY LTD	B	929050	173.59
25/7/2011	533470	RUSHIL DECOR	MARWADI SHARES AND FINANCE LIMITED	B	144030	174.48
25/7/2011	533470	RUSHIL DECOR	MANSUKH SECURITIES & FINANCE LTD	B	110271	173.97
25/7/2011	533470	RUSHIL DECOR	CHANDARANA INTERMEDIARIES BROKERS PRIVATE LIMITED	B	253081	175.88
25/7/2011	533470	RUSHIL DECOR	RAMAKANT MANGALCHAND GAGGAR	B	86854	169.01
25/7/2011	533470	RUSHIL DECOR	NIKHIL SECURITIES LIMITED	B	176934	175.01
25/7/2011	533470	RUSHIL DECOR	M/S. RIKHAV INVESTMENTS	B	77194	172.25
25/7/2011	533470	RUSHIL DECOR	TRANSGLOBAL SECURITIES LTD.	B	76193	175.55
25/7/2011	533470	RUSHIL DECOR	SHREE MALLIKARJUN TRADINVEST PRIVATE LIMITED	B	122000	173.87
25/7/2011	533470	RUSHIL DECOR	AMBER ENCLAVE PRIVATE LIMITED	B	98522	164.49
25/7/2011	533470	RUSHIL DECOR	CROSSEAS CAPITAL SERVICES PRIVATE LIMITED	B	1309709	175.40
25/7/2011	533470	RUSHIL DECOR	R M SHARES TRADING PRIVATE LIMITED	B	273912	175.65
25/7/2011	533470	RUSHIL DECOR	LUMINOUS IMPEX PRIVATE LIMITED	B	336984	174.38
25/7/2011	533470	RUSHIL DECOR	R M SHARES TRADING PRIVATE LIMITED	S	273912	175.70
25/7/2011	533470	RUSHIL DECOR	LUMINOUS IMPEX PRIVATE LIMITED	S	336984	171.97
25/7/2011	533470	RUSHIL DECOR	SHREE MALLIKARJUN TRADINVEST PRIVATE LIMITED	S	122000	177.08
25/7/2011	533470	RUSHIL DECOR	CROSSEAS CAPITAL SERVICES PRIVATE LIMITED	S	1309709	175.50
25/7/2011	533470	RUSHIL DECOR	AMBER ENCLAVE PRIVATE LIMITED	S	377522	164.71
25/7/2011	533470	RUSHIL DECOR	TRANSGLOBAL SECURITIES LTD.	S	76193	175.49
25/7/2011	533470	RUSHIL DECOR	NIKHIL SECURITIES LIMITED	S	176934	175.04
25/7/2011	533470	RUSHIL DECOR	M/S. RIKHAV INVESTMENTS	S	77194	172.19
25/7/2011	533470	RUSHIL DECOR	RAMAKANT MANGALCHAND GAGGAR	S	81854	170.12
25/7/2011	533470	RUSHIL DECOR	MARWADI SHARES AND FINANCE LIMITED	S	144030	174.41
25/7/2011	533470	RUSHIL DECOR	CHANDARANA INTERMEDIARIES BROKERS PRIVATE LIMITED	S	253081	175.97
25/7/2011	533470	RUSHIL DECOR	MANSUKH SECURITIES & FINANCE LTD	S	109271	174.15
25/7/2011	533470	RUSHIL DECOR	A K G SECURITIES AND CONSULTANCY LTD	S	930850	173.61
25/7/2011	523025	Safari Inds	RASHESH MANHARBHAI BHANSALI	B	15000	135.44
25/7/2011	523025	Safari Inds	HITESH SHASHIKANT JHAVERI	B	15020	136.80
25/7/2011	523025	Safari Inds	BP FINTRADE PRIVATE LIMITED	B	15390	136.75
25/7/2011	523025	Safari Inds	BP FINTRADE PRIVATE LIMITED	S	15138	136.38
25/7/2011	523025	Safari Inds	HITESH SHASHIKANT JHAVERI	S	15015	136.80
25/7/2011	507747	TTK Healthcare-$	CROSSEAS CAPITAL SERVICES PRIVATE LIMITED	B	38848	636.68
25/7/2011	507747	TTK Healthcare-$	A K G SECURITIES AND CONSULTANCY LTD	B	58689	636.58
25/7/2011	507747	TTK Healthcare-$	A K G SECURITIES AND CONSULTANCY LTD	S	58689	636.75
25/7/2011	507747	TTK Healthcare-$	CROSSEAS CAPITAL SERVICES PRIVATE LIMITED	S	38848	638.67
25/7/2011	532311	Tutis Tech-$	MANDVIDYES&CHEMICALSCO PVT LTD	B	120043	18.24
25/7/2011	532311	Tutis Tech-$	PRIME DYES & CHEMICALS CO.PVT. LTD	S	95001	18.14
25/7/2011	531867	Unitech Intl	PRASHAM D DOSHI	S	100000	15.40
25/7/2011	531364	Zenu Infotech	RAJ BALA RATHI	B	50000	42.20
25/7/2011	531364	Zenu Infotech	VIDYA MAHESH CHALKE	S	39825	42.25
* B - Buy, S - Sell
** = Weighted Average Trade Price / Trade Price