09 March 2012

Godawari Power & Ispat Ltd Buy Target Price: Rs157 ::Centrum

Please Share:: Bookmark and Share India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��


Godawari Power & Ispat Ltd

Buy
Target Price: Rs157
CMP: Rs100
Upside: 57%
Pellet paving the way for a prosperous future
A backward integrated business comprising captive iron ore mines and a flexible sales product mix of steel, pellets and power make Godawari Power & Ispat Ltd, GPIL, an interesting investment bet in the midcap steel space. Ramp up in captive iron ore mining and pellet production together with increased steel product sales is likely to result in impressive net sales and EBITDA CAGR of ~23% and ~15% respectively over FY11-14E. We initiate coverage on the stock with a Buy rating and target price of Rs157.
m  Flexible business model with rich product portfolioGPIL has created a strong niche for itself in the midcap steel space through its rich product portfolio forward integrated into HB Wire and backed by backward integration from iron ore and pellets.  The product mix of GPIL remains flexible to derive maximum profitability.
m  Pellet making to double in two years, drive earnings: GPIL is doubling its pellet making capacity to 2.4 mtpa by FY14E through the set up of a new pellet plant of 1.2 mtpa at Chhattisgarh at a capex of Rs3.8bn. Pellets result in cost saving on iron ore feed for sponge iron unit and enjoy EBITDA margin of ~40% on spot merchant sales when captive fines are used. We see merchant pellet sales growing at a CAGR of 21% during FY12-14E and account for ~65% of overall pellet production by FY14E thus driving the earnings of GPIL.
m  Captive iron ore back on track: GPIL’s Ari Dongri iron ore mine of 0.6 mtpa results in crucial cost savings for pellet and sponge iron making and is back on track after facing problems on mining and logistics in H1FY12E. We see 80% capacity utilization in iron ore mining for GPIL in FY13-14E.
m  Power provides hedge to steel business volatility: GPIL’s 53 MW power portfolio provides a natural hedge for steel business volatility and we expect the company to continue selling a mix of steel and merchant power to maximize returns.
m  Solar power foray remains an unrelated diversification: We remain concerned on GPIL’s foray into solar power generation (50 MW capacity at a capex of ~Rs8bn with 70:30 debt: equity) and view it as an unrelated diversification. GPIL has thus far invested Rs1210mn as equity into the project and the project is expected to commission by May’2013. We have not factored the same in our earnings and valuation as of now and await more clarity on the same.
m  Valuations – attractive, BuyThe stock trades at Rs100, which discounts its FY13E EPS and EV/EBITDA by 3.2x and 4.1x. We see earnings growth ahead driven by pellet volumes and value the stock at 4x FY14E EV/EBITDA to arrive at a fair value of Rs157. We don’t factor in any value for the solar power investment by the company as of now. We initiate coverage on GPIL with a Buy rating and target price of Rs 157.
m  Key Risks: Lower sales volumes, drop in steel and pellet prices, hike in royalty on iron ore and lower returns from investment into solar power.

Thanks & Regards, 

09.03.2012 : Technical Report: Angel Broking -PDF link

Please Share:: Bookmark and Share India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��


Technical Report


09.03.2012 : Market Summary: Angel Broking -PDF link

Please Share:: Bookmark and Share India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��


Market Summary




09.03.2012 : Derivatives Report: Angel Broking -PDF link

Please Share:: Bookmark and Share India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��


Derivatives Report


09.03.2012 :: Market Outlook: Angel Broking -PDF link

Please Share:: Bookmark and Share India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��

Market Outlook

Call Auction in Pre Open session for IPOs (New listing) and Re-listed Scrips ::ShareKhan

Please Share:: Bookmark and Share India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��


mportant things to know;

What is Call Auction in Pre Open session for IPOs (New listing) and Re-listed Scrips?
It is basically a mechanism to determine the Opening Price based on aggregated supply and demand for the underlying on the first day of trading/ re-commencement of trading.

What are the timings for the Call Auction Pre Open session for IPOs (New listing) and Re-listed Scrips?
The session would commence for 60 minutes between 9:00am and 10.00 am out of which order placement in the Pre Open session would be allowed for the first 45 minutes only. The rest of the time would be utilized for exchange related functions as illustrated in the indicative schedule mentioned below.
SESSIONTIMEACTIONEXCHANGE STATUS
Exchange Call auction in Pre Open session for IPOs (New listing) and Re-listed Scrips Order Entry Period.9:00am - 9:44/45am (approx)Orders for new listings (IPO) and re-listed scrip's can be placed /modified /cancelled in the Call auction in Pre Open session.Open
Exchange Call auction Pre Open session for IPOs (New listing) and Re-listed Scrips Order Matching & Confirmation Period.9:45am - 9:55amOrder placement /modification /cancellation in the call auction in Pre Open session will be stopped.

Opening price determination, order matching & trade confirmation starts at Exchange.
Open
Buffer Period.9:55am - 10:00amTo facilitate transition between call auction in pre open and continuous trading session.Open
Continuous Trading for IPOs (New listing) and Re-listed Scrips10:00am - 3:30pmExchange would move all unmatched market orders to the continuous session at the opening price.Open

Flat trade Ø CSEC Research

Please Share:: Bookmark and Share India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��


Flat trade

Ø       The BSE Sensex opened in the red and declined more than a percent in the morning session. However, Sensex recouped its losses on the back of positive European cues.

Ø       IT index bucked the trend and closed in green. The rise was on account of weak rupee. The rupee was hovering near seven-week low on Wednesday.

Ø       Shares of state-run oil marketing companies (PSU OMCs) fell on fears the much anticipated fuel price hike would get delayed.

Ø      Textile stocks were mixed as reports claimed that a ministerial panel will review on Friday, the recently imposed cotton-export ban after the farm minister objected to the move saying it would harm farmers.

Outlook

Ø       U.S. stocks extended gains into a second session as a deadline for private bondholders to exchange Greece-issued debt passed. The Dow Jones Industrial Average closed up 70.61 points, or 0.6%, to 12,907.94. It’s still modestly lower for the week.

Ø    In today trade Asian markets are trading flat and the SGX Nifty is trading above 5300 mark. Going ahead Indian market is likely to witness gap up opening on the positive side.

Regards,
CSEC Research

Metallica Prices broadly stable; volatility likely ahead::Emkay PDF link

Please Share:: Bookmark and Share India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��


Metallica
Prices broadly stable; volatility likely ahead
While non ferrous metals prices improved (2-8%), steel prices remained broadly stable during last fortnight (ending 2nd March’12). This we believe was due to seasonality and supportive global macro economic factors during this period. We expect development in Europe and Middle-East along with movement in USD to keep prices volatile going ahead.
n     Ferrous: Steel prices maintaining stability
n     Non-ferrous: Aluminium has been biggest gainer
n     Macroeconomics: Overall supportive, however concerns remain

CMP
TP
Reco
HZL
142
159
Buy
Tata steel
460
422
Hold
Sterlite Ind.
121
123
Hold
Hindalco
147
154
Acc
Sesa Goa
208
205
Hold
JSW Steel
794
590
Red
Bhushan
391
315
Hold
HEG
241
230
Acc
GPIL
106
133
Buy


Click here to read report: Sector Update

Trading Today (March 09, 2012) Emkay PDF link

Please Share:: Bookmark and Share India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� �


Trading Today
(March 09, 2012)


From Our Technical Desk
From The Dealing Desk
Market Outlook:
The markets traded within a wide range amid high volatility and ended on a flat note. Buying was seen in Technology and Realty counters while Metal and Oil & Gas counters witnessed selling pressure.  
Nifty:
The markets ended on a flat note after a very volatile session. The 200 DMA, 50 DMA and the trend line on the weekly chart at 5,180 will act as a very important support level for Nifty where buying can emerge and close below this level would drift Nifty further lower to 5,070 levels. The 5 DMA at 5,322 will act as an important resistance level and we need a very strong trigger to surpass this level
Support: Major support level 5,200/5,180.
Conclusion: Market to remain volatile, trade with strict Stop Loss.


Trading Ideas
  • Trading idea which we like is JAI CORP (Target 125), HINDALCO (Target 145) & HPCL (Target 345). Traders maintain stop loss accordingly.
Investment Ideas
  • Reliance Industries CMP @ Rs 762 (Target Price: Rs  879)

Statistical Data
  • Derivatives Update
  • Advance Decline Ratio
  • Sector updates
  • Exchange Volumes
  • Implied Volatility for ATM Options
  • Put Call Ratio for (Open Interest)
  • FII - MF Activity
  • World Markets
  • Currency

Click here to read report: Trading Today

9/3/12: Categories Turnover (BSE) (Rs. crore) Clients NRI Proprietary Trade Data

Please Share:: Bookmark and Share India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��



Categories Turnover (BSE)

(Rs. crore)
ClientsNRIProprietary
Trade DateBuySalesNetBuySalesNetBuySalesNet
9/3/122,227.452,384.40-156.952.780.961.82708.57666.4242.16
7/3/121,717.021,687.7629.264.460.903.56640.77611.3829.39
6/3/121,992.621,948.8643.762.320.901.42826.21845.83-19.62
Mar , 1212,082.9712,043.6839.2914.645.888.764,304.994,294.7810.21
Since 1/1/1291,156.0392,832.64-1,676.6158.4055.772.6333,413.9032,357.661,056.24

BSE, Bulk deals, 9/3/2012

Please Share:: Bookmark and Share India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��


Deal DateScrip CodeCompanyClient NameDeal Type *QuantityPrice **
9/3/20125121618K Miles SoftwareSHAH NIRAJ NAGINDAS (HUF)B6300055.50
9/3/20125121618K Miles SoftwarePALLASANNA KRISHNA SUBRAMANIAN HUFB5625055.50
9/3/20125121618K Miles SoftwareNIRAJ NAGINDAS SHAHB6300055.50
9/3/20125121618K Miles SoftwareJIPAL PINESHKUMAR SHAHS10000055.50
9/3/2012531560Aroma EnterprisesAASHISH DEVELOPERS329008.41
9/3/2012512149Avance TechVORA FINANCIAL SERVICES PRIVATE LIMITEDB61407920.14
9/3/2012512149Avance TechVORA FINANCIAL SERVICES PRIVATE LIMITEDS62343360.14
9/3/2012532989Bafna PharmaLINDAJEET KAUR RUPRAIB10325049.00
9/3/2012532989Bafna PharmaVISTAR FINANCIERS PVT LTDS10000048.99
9/3/2012511710Cubical FinEURO GOLD JEWELLERY LIMITEDB20000035.95
9/3/2012511710Cubical FinASHWANI KUMAR GUPTAS20000035.95
9/3/2012511710Cubical FinPELF FINSTOCK LIMITEDS10000035.95
9/3/2012500097DALMIASUGAVIS TIE UP PRIVATE LIMITEDB325000015.15
9/3/2012500097DALMIASUGHORSELL INVESTMENT LIMITEDS184478515.15
9/3/2012500097DALMIASUGCAMBERLEY INVESTMENTS LIMITEDS140902015.15
9/3/2012531270Dazzel ConfBRIJESH ASHOKBHAI HALARIB17831515.14
9/3/2012531270Dazzel ConfBRIJESH ASHOKBHAI HALARIS12950555.14
9/3/2012524590Dinesh AllorgaKARTIKKUMAR PRAVINBHAI PATELS1900066.66
9/3/2012531055GFLFINSHEELA MEHTAB3000022.75
9/3/2012531055GFLFINSWARN PROJECTS LIMITEDS4200022.75
9/3/2012531055GFLFINHIGH VALUE TRADERS PVT LTDS5800022.75
9/3/2012531410Gujarat FoilsA S SHAHB5000045.13
9/3/2012531410Gujarat FoilsVARDHMAN INVESTMENTS5000045.13
9/3/2012532334HB Est DeveloperANJU BHASINB10105430.00
9/3/2012532334HB Est DeveloperB.K.KHULLAR & COS10000030.00
9/3/2012532333HB PortfolioANJU BHASINB11965028.27
9/3/2012531505Indergiri FinGAJANAND GUPTAS396009.93
9/3/2012530979India HomePARUL SUBHASHBHAI PATELB10000042.55
9/3/2012530979India HomeCHETANKUMAR RAOJIBHAI PATELS10000042.55
9/3/2012514312Jaihind SynMOHIT HEMANT NAGARSHETHB504057.49
9/3/2012514312Jaihind SynAKSHAR INVESTMENTS500007.49
9/3/2012530165Kanchan IntlDHARMENDRA HARILAL BHOJAKB1650089.00
9/3/2012530547KEN Fin ServYOKE COMMODITIES PRIVATE LIMITEDB2500058.00
9/3/2012530547KEN Fin ServPANDURANG KASHINATH LAKHES2166058.00
9/3/2012506128Krishna DeepGRACEUNITED REAL ESTATE PVT LTDB5200045.60
9/3/2012506128Krishna DeepGRACEUNITED DEVELOPERS PRIVATE LIMITEDB7800045.60
9/3/2012519570Lakshmi OverBANK MUSCAT INDIA FUNDB50000017.50
9/3/2012519570Lakshmi OverTAIB SECURITIES MAURITIUS LTDS50000017.50
9/3/2012508306Ledo TeaALLIANCE FINSTOCK LIMITEDB610065.90
9/3/2012508306Ledo TeaALLIANCE FINSTOCK LIMITEDS600063.08
9/3/2012534091MCX LTDMARWADI SHARES AND FINANCE LIMITEDB2555891351.17
9/3/2012534091MCX LTDA K G SECURITIES AND CONSULTANCY LTDB4431061341.47
9/3/2012534091MCX LTDCROSSEAS CAPITAL SERVICES PRIVATE LIMITEDB3430351334.92
9/3/2012534091MCX LTDCROSSEAS CAPITAL SERVICES PRIVATE LIMITEDS3430341335.39
9/3/2012534091MCX LTDA K G SECURITIES AND CONSULTANCY LTDS4430561342.01
9/3/2012534091MCX LTDMARWADI SHARES AND FINANCE LIMITEDS2555891351.68
9/3/2012505525Parichay InvestPUSHPA BAIB700034.90
9/3/2012505525Parichay InvestMOHANLALB700034.82
9/3/2012505525Parichay InvestDHAVAL SATISHKUMAR AGRAWALS1332234.90
9/3/2012511734Pasupati FinNILESH JAYANTILAL SHAHS3500039.85
9/3/2012531769PFL InfotechB.K.KHULLAR & COS3900024.51
9/3/2012500346Punjab Comm-$GOLDEN GOENKA FINCORP LIMITEDS99439193.79
9/3/2012590077Ranklin Sol-$GUMMADI SESHAGIRI RAOB300008.43
9/3/2012590077Ranklin Sol-$O MARKANDEYULUS474618.43
9/3/2012504378Ravinay TradGRACEUNITED REAL ESTATE PVT LTDB23800152.30
9/3/2012531207Raymed LabsRATTAN POLYMERS PRIVATE LIMITEDB2477030.40
9/3/2012532712Reliance CommRELIANCE CAPITAL LTDB2267500093.00
9/3/2012532712Reliance CommSONATA INVESTMENTS LTDS2267500093.00
9/3/2012531447ROCKON FINKHOOBSURAT LIMITEDS11680001.78
9/3/2012531447ROCKON FINKEMFIN SERVICES PVT LTDS20000001.78
9/3/2012523025Safari IndsAMIT GOELS15501164.16
9/3/2012532836SANCIA GLOBANANT DATTA RATHODB5727308.75
9/3/2012532836SANCIA GLOBSHASHIKANT RAMGOPAL RATHIS2300008.73
9/3/2012511754Shalibhadra FinA SHAH ROMESHB2800070.36
9/3/2012511754Shalibhadra FinJIGNESHKUMAR HARSHVADAN GANDHIS2950070.65
9/3/2012532669Southern OnlinTHE INDIAMAN FUND MAURITIUS LIMITEDB9708256.25
9/3/2012532669Southern OnlinMAYA TRADE LINKS LTDS9708256.25
9/3/2012531866Subhkam CapIMPROVE COMMOTRADE PRIVATE LIMITEDS3505994.85
9/3/2012590111VAISHNAVIRAGHU CHEKKAS850006.00
9/3/2012533427VMS IndsALOK FINANCE PVT. LTD.B25000060.40
9/3/2012533427VMS IndsNIRAJ REALTORS & SHARES PVT. LTD.B20000060.40
9/3/2012533427VMS IndsBIKAJI MERCANTILES PVT LTDS10000060.40
9/3/2012531249Well Pack PapersSHASUN FINANCE LTDB4150003.06
9/3/2012531249Well Pack PapersPYRAMID SALES PRIVATE LTDS4150003.06
* B - Buy, S - Sell
** = Weighted Average Trade Price / Trade Price