27 April 2012

Tomorrow: Special session for Live trading on Saturday, April 28, 2012

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The Exchange is upgrading the capacity of Futures and Options trading system hardware and
software to the next generation system to improve processing capability and handle increased
activities in the market. Existing Trading system architecture will be revamped by using a
distributed processing concept. Towards this, the Exchange is conducting a special live trading
session on Saturday, April 28, 2012.
Market timings for special live trading session on Saturday, April 28, 2012 in Capital market
segment will be as follows:
Saturday, April 28, 2012  Time
Pre-open order entry open time 11:00 hrs
Pre-open order entry close time (with random closure in last one
minute)
11:08 hrs
Pre-open order Matching will start immediately after close of
pre-open order entry
Normal / Odd lot / Retail Debt Market Open 11:15 hrs
Normal / Odd lot / Retail Debt Market Close 12:45 hrs
Block Deal Session Open  11:15 hrs
Block Deal Session Close  11:50 hrs
Closing session start  12:55 hrs
Closing session end 13:05 hrs

Angel Broking - UltraTech - RU4QFY2012 -Result Updates - PDF link

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Rallis India Limited :Buy rating with a revised target of Rs150.17- GEPL PDF link

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Summary

At the CMP of `115.95, Rallis India is trading at 11.50x its FY13E earnings estimate. Currently, the sector is facing headwinds such as lower farmer sentiment and considerable inventory pileup putting pressure on margins. However, strong base business, continuous product launches and foray into newer segments lead us to believe the long term outlook for Rallis is still positive. Being an agricultural stock, rainfall is a crucial trigger for the stock. 

We retain our BUY rating on Rallis with revised target price set to `150.17 based on a P/E of 15x FY13E EPS of `10, a potential upside of 29.52%.

  
  


India Cements Ltd. - GEPL PDF link

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India Cements Ltd. 
  •  Net sales for Q4FY12 grew by 11.8% on Y-o-Y basis to Rs 11,185 mn. This was mainly driven by higher realisation. However, owing to sluggish demend in Andhra Pradesh volumes remained flat at 2.53 mn MT in Q4FY12.
  • EBIDTA margins for Q4FY12 stood at 19.5%, showing an increase of 136 bps on Y-o-Y basis, however, margins declined by 141bps Q-o-Q.
  • At the same time EBIDTA grew by 20.3% Y-o-Y to Rs 2,176 mn.
  •  Net profit for Q4FY12 increased by 17.6% on Y-o-Y basis to Rs 650 mn.

Yes bank Q4FY12 highlights - GEPL PDF link

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Yes bank Q4FY12 highlights - Traction in CASA ratio and flat margins to positively impact the stock
  •  The bank reported growth of 33.6% Y-o-Y in PAT in Q4FY12 vs market expectation of        27% YoY .
  •  Net Interest Income grew by 28.6% YoY in Q4FY12 vs expectation of 30% YoY.
  •  NIM ha has remained stable sequentially at 2.8% in Q4FY12.
  •  Non-interest income has grown by 42.6% YoY basis which is a positive indicator for the bank.
  •   Advances have grown by 10.5% Y-o-Y in Q4FY12 vs expectation of 14%.
  •  Deposits grew by 7% Y-o-Y in Q4FY12.
  •  CASA ratio has grown to 15% in Q4FY12 vs 10.5% in Q4FY11. This is the positive catalyst for the bank.
  •  Asset quality has remained flat YoY as well as sequentially. GNPA stood at 0.2% in Q4FY12 vs 0.2% in Q3FY12. We fell this should act as an positive catalyst for the stock. 
  
  

Yes bank Q4FY12 highlights - GEPL PDF link

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Yes bank Q4FY12 highlights - Traction in CASA ratio and flat margins to positively impact the stock
  •  The bank reported growth of 33.6% Y-o-Y in PAT in Q4FY12 vs market expectation of        27% YoY .
  •  Net Interest Income grew by 28.6% YoY in Q4FY12 vs expectation of 30% YoY.
  •  NIM ha has remained stable sequentially at 2.8% in Q4FY12.
  •  Non-interest income has grown by 42.6% YoY basis which is a positive indicator for the bank.
  •   Advances have grown by 10.5% Y-o-Y in Q4FY12 vs expectation of 14%.
  •  Deposits grew by 7% Y-o-Y in Q4FY12.
  •  CASA ratio has grown to 15% in Q4FY12 vs 10.5% in Q4FY11. This is the positive catalyst for the bank.
  •  Asset quality has remained flat YoY as well as sequentially. GNPA stood at 0.2% in Q4FY12 vs 0.2% in Q3FY12. We fell this should act as an positive catalyst for the stock. 
  
  

Angel Broking -Rallis India - RU4QFY2012 -Result Updates - PDF link

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Rallis India - RU4QFY2012



Ultratech Cement Ltd : Accumulate for target of Rs1595 : GEPL PDF link

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Summary

We maintain our target of Rs 1,595 arrived based both on EV/MT and EV/EBIDTA on a differential weightage. Owing to the sharp fall seen in the recent past there is an upside of 12%, hence we revise our recommendation from NEUTRAL to ACCUMULATE rating on the stock.

The results for the Q4FY12 have been in line with our estimates. Demand for cement is expected to remain good in Q1FY13; however, owing to recent intervention by CCI on cartelisation we don't expect a strong up tick in cement prices in Q1FY13. We believe that RBI's move (50bps cut in repo) might trigger demand from housing and industrial segment in the near term. Also projects like DMIC (Delhi Mumbai industrial corridor) coupled with encouraging data on project implementation under public private partnership should help cement companies in the long run. 


  
  

NBCC - Value Pick : Anand Rathi

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NBCC                                                     Closing 100                                                             Target 160


“NBCC has a negative EV as its market cap is less than the cash on books of Rs. 13500mn, which shows that you are getting business almost free. With no debt on books and financial strength the company is an attractive play in the segment.

Investment Rationale

~   Operations in diverse sectors, with a strong order-book
~   Financial strength
~   Significant track-record with steady clientele
~   Consistent dividend-payer
~ Focus on high-value PMC and civil infrastructure projects for the power sector to benefit from economies of scale
~   Expansion of PMC business overseas


The Business

A public sector company engaged in project management consultancy services for civil construction projects, civil infrastructure for the power sector and real estate development, The National Buildings Construction Corp. is headquartered in New Delhi and has 10 regional / zonal offices across India. Projects undertaken are spread across 23 states and one union territory. In addition, the corporation has undertaken projects overseas.

1) Project management consultancy includes residential and commercial complexes, re-development of buildings and colonies, hospitals, educational institutions, infrastructure works for security personnel, border fencing as well as infrastructure projects such as roads, water-supply systems, storm-water systems and water-storage solutions. Some clients in this segment are or have been: the ESIC, the Ministry of Defence, the Ministry of Home Affairs (including security forces such as the CRPF, CISF, NSG, BSF), the Ministry of External Affairs, the MoUD, the Ministry of Commerce and Industry, the Ministry of Corporate Affairs, the Ministry of Finance, the Haryana Urban Infrastructure Development Board, IIT Roorkee, IIT Kharagpur, IIT Patna and SVNIT, among others.

2) Civil infrastructure for the power sector includes engineering and construction services for power projects, including design and execution of civil and structural works for power projects, and cooling towers and chimneys. Some clients in this segment are NTPC, BHEL, APGENCO, the Uttar Pradesh Rajya Vidyut Utpadan Nigam, MAHAGENCO and the Karnataka Power Corp.

3) Real-estate development focuses on two types of projects: residential, such as apartments and townships and commercial such as corporate office buildings and shopping malls. On January 31, 2012, land reserves (in Delhi, Uttar Pradesh, Patna, Gurgaon, Kolkata, Kochi, Alwar and Lucknow) were approximately 125 acres.



~ Valuation

A PSU construction company with no debt and good cash resources on its books becomes very attractive in this market scenario. A good execution track record and a diverse range of projects seem to be the key to its success. With more government spending in infrastructure and with a sound order book, we have a rosy outlook for the company.
It is also a good proxy for dividend play.

At CMP the stock trades at 7.9x and 1.48x its FY12E earnings P/BV respectively. It peers trade around 15-16x, which shows that it is available at a discount mainly on its positives reflecting from its financial strength (zero debt & negative EV) and strong order book.

NBCC has a negative EV as its market cap is less than the cash on books of Rs. 13500mn, which shows that you are getting business almost free. With no debt on books the company is an attractive play in the segment. Going forward we see a price target of Rs. 160 for next 2 years.


Thanks & Regards

HDFC Mid-cap Opportunities: Limited churning, but actively managed :: Business Line

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Prioritise financial goals according to time :: Business Line

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I am 42, working as an ‘off the roles' employee in a non-banking finance company. I get a fixed consultancy fees of Rs 20,000 a month. Besides that, my annual incentives amount to an additional Rs 6 lakh.
I live in my own house. My monthly household expenses are Rs 30,000, including provision for insurance premium of Rs 8,700 and travel costs of Rs 4,000.
My dependants are my wife (aged 39), parents (75 and 68). My parents are covered by medical insurance of Rs 2 lakh each. My wife and I are covered by a floater policy for Rs 10 lakh. I have a term insurance for Rs 25 lakh, and also an endowment policy for Rs 10 lakh which matures in 2020.The annual premium is Rs 20,000.
Investment details:
KVP certificates worth Rs 3 lakh will mature in 2014.
My PPF balance is Rs 6 lakh. I am planning to invest Rs 2 lakh a year in both of our names for the next 10 years. I have plots which are collectively worth about Rs 21 lakh.
My current MF investments are Rs 4 lakh and I am planning to start fresh SIP for Rs 20,000 towards my retirement corpus.
I also have a ULIP (pension) with annual premium of Rs 50,000.
My savings account balance is Rs 2 lakh.
Goals:
An overseas trip in 2017 today costs Rs 4 lakh. In five years, I wish to buy a car with present value of Rs 10 lakh. I wish to support my brother's son's education in 2022, the present cost of which is Rs 2 lakh. Since I am in a stressful sales job, I wish to retire in 2022 and maintain the same standard of life till 80.
— Vinayaka Bhandarkar
Planning for retirement entails a judicious allocation of financial resources. In most cases, individuals simply set aside money to meet the living costs without factoring in inflation. It is mandatory to beat inflation for you to sustain with your retirement kitty.
If you wishe to hang your boots well before you turn 60, you should have a large corpus or alternatively your investment returns should beat inflation.
In your case since you are going to work only for ten more years, to reach all your goals you need to prioritise goals according to their timeline.
If you wish to retain the same standard of living, at retirement you need a corpus of Rs 1.05 crore. It is important that the kitty earns a return that is at least 1 per cent over and above the inflation to sustain till your life expectancy.
If you allow your existing investments to grow till your retirement, you can accumulate Rs 40 lakh. To meet the shortfall you ought to save monthly a sum of Rs 27,500 and the portfolio should earn a return of 12 per cent.
Given your limited surplus currently, start your retirement savings with Rs 10,000 a month. Once you meet all your goals, you need to save Rs 4.6 lakh a year from 2017 and it should earn tax adjusted return of 9.3 per cent. Construct a portfolio with 57 per cent allocated to equity investments and 43 per cent in debt. Your equity portion should earn 10 per cent and the debt part should earn tax adjusted return of 8.5 per cent. With this strategy, you can reach the target of Rs 1.06 crore.

BUYING A CAR

It is difficult to predict the value of a car in five years, since it is generally not directly related to inflation. If we presume that the price will go up by 7 per cent every year, after five years the value will be Rs 14 lakh. To reach the target, you need to save Rs 17,150 and it should earn 12 per cent.
Since you are employed ‘off roles', buy a car by taking a loan and deduct the interest paid from your income for tax purposes till you reach the target.

FOREIGN TOUR

After five years, the Rs 4 lakh required for an overseas trip could become Rs 5.6 lakh. To reach the target, invest monthly a sum of Rs 6,850 and it should earn return of 12 per cent.

EDUCATION

Since it is a long-term goal, save monthly a sum of Rs 1,700 in an equity-oriented mutual fund. If you reach your required target of Rs 4 lakh earlier, shift the entire savings to debt.

INVESTMENT STRATEGY

Barring retirement, for the rest of the goals allocate 70 per cent of the assets in equity and rest in debt. For retirement, moderately tone down equity exposure. The MF schemes you hold in your portfolio are good. Therefore, continue the same schemes for future investments too. If you live longer , dilute plots to meet your needs. When aged parents are around it is good to hold cash but don't keep too much of it in SB accounts.

Angel Broking - Sesa Goa - RU4QFY2012 -Result Updates - PDF link

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WIPRO LIMITED Mar-12 results: weakening outlook ::Barclays Capital,

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WIPRO LIMITED
Mar-12 results: weakening outlook
Wipro guided for revenue growth in the range of -1% to +0.9% q/q for the Jun-12
quarter, indicating that the near-term outlook remains challenging for Indian IT
companies. Although results for the Mar-12 quarter were in line with our estimates,
the tough macro environment could make it difficult for Wipro to resolve its
execution issues. Valuations with a P/E of 15.7x FY13 (Infosys trades at 14.4x) also
do not appear inexpensive. Hence, we maintain our 3-Underweight rating and our
12-month price target of Rs360.
Mar-12 performance: Wipro’s IT services revenue of US$1,536mn (+2% q/q) was in
line with our estimate. This was driven by volume growth, which stood at +0.8% and
price realization improvement of +0.6% q/q. The growth was driven by energy/utilities
(+6.8% q/q) and retail (+5.9% q/q) while telecom and BFSI saw sequential declines of
2.1% and 0.6%, respectively. By geography, APAC and emerging markets (+10.5% q/q)
were the main growth drivers while the US and Europe showed muted growth.
Jun-12 guidance: Wipro guided for IT services revenue of US$1,520-1,550m (-1% to
0.9% q/q), indicating that the outlook remains unpredictable for IT companies. Out of
the three Offshore IT service companies that provide quarterly guidance, Wipro is now
the second company (after Infosys) to warn of a slow June quarter. Clearly all eyes will
now be on CTSH results on 7 May. Wipro's margins could also remain under pressure in
the June quarter due to higher wages.
Sustained improvement appears warranted to justify valuations: We adjust our EPS
estimates down 3.5% for FY13 and down 4.1% for FY14 to incorporate the weak
outlook. The stock’s current valuations seem unjustified given the volatile macro
environment and the execution risks associated with the company. We maintain our
12-month price target of Rs360 and our 3-Underweight rating.

Tax treatment for cafeteria allowance :: Business Line

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My father purchased two sites, 64/2200 sq ft on August 7, 1975 for Rs 5, 000 and another, 68/1200 sq ft on March 6,{+t} 1982 for Rs 3, 000 and a house was built for Rs 2 lakh. It was sold as one plot with the house in November 2011 for R. 23, 46, 000. My father is a retired Government servant.
How can I find out the cost of acquisition in 1981 for a plot bought in 1975? Does this transaction come under LTCG from sale of residential property or land? What is the difference?
A new house was built in May 2010 in Kerala for 18 lakh and he also owns an ancestral house. Can we claim exemption on LTCG showing this house? Can we buy NHAI/RECL bonds now?
If we can't buy bonds now when is the last date to open a CG account and can the money be used to buy bonds later?
— Dr. V. Anil Kumar
Since one of the plots was purchased prior to April 1, 1981, theFair Market Value of this plot has to be calculated on 1 April, 1981. There are Government-authorised valuers who can do valuation as on April 1, 1981 and the same can be used as cost of acquisition of the plot. Since the property is held for more than 36 months, the gain from its sale would be considered as long term capital gains from sale of house property. Long term capital gain is taxed at a beneficial rate of 20.6 per cent. In case no house was constructed on the land, and land was sold independently, the assessee would not have been entitled to certain exemptions which are available only against sale of house property.
The capital gain arising from the transfer of long term capital asset being a residential house can be claimed as exempt provided the assessee has purchased a property within a period of one year before or two years after the date of transfer; or constructed a residential house within a period of three years after that date. Since the new house built in Kerala does not fall in this time limit, exemption will not be available.
The investment in the specified bonds can be made up to six months from the date of transfer of the original asset. As in this case the asset is sold in November 2011, the investment can be made within six months from the date of sale. In case the assessee has not been able to utilise the amount of capital gain for purchase or construction of the new asset before the due date of furnishing the return of income i.e. in the given case it is July 31, 2012; the capital gain can be deposited by the assessee before July 31, 2012 under Capital gains account scheme. The benefit of capital gain account scheme is available only in respect of purchase of residential house and for investment in bonds.
I am a PSU employee and receive cafeteria allowance, which was introduced in the salary structure of employees in October 2009. As part of the cafeteria allowance, I am receiving professional allowance, newspaper allowance and canteen allowance. Can I claim any exemption on the income received from such allowances.
— V.V.P. Narasimham
The value of free food and non-alcoholic beverages provided by an employer during working hours at office or business premises or through paid vouchers which are not transferable and usable only at eating joints, is exempt only to the extent the value thereof in either case does not exceed Rs 50 a meal. Any other allowance received by the employees is exempt in the hands of the employee only if the same is actually incurred wholly and exclusively for official purposes.

27 April: Morning News (click on link to read article): IFCI Financial Services Limited

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Morning News (click on link to read article)

Economic Times

Business Standard

 Business Line
Mint

Financial Express

Financial Chronicle

   (Click on link to view article)
Thanks and Regards
IFIN: IFCI Financial Services Limited

SGX Nifty 5,223.00 +6.00 (Singapore exchange) Indian Markets to open UP today

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SGX Nifty 5,223.00 +6.00 (Singapore exchange)
8:30 AM India time
27 April 2012
Indian Markets  to open UP today