24 May 2012

India Strategy Asia Insight: Road to Wealth Creation – Formula = GARP ::Morgan Stanley Research,

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

Petrol Price Hike: Heralding Stagflation? :Nirmal Bang

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

FII & DII trading activity across NSE and BSE 24-05-2012

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

India: Make or break:: Nomura Research

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

Balance Sheet Strain, Slower Project Execution for HCC :Nirmal Bang

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

24/5/12 - 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 �� ��

Indiabulls Real Estate:: TP: INR85 Buy -Motilal oswal,

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

Dishman Pharmaceuticals & Chemicals Target Price (INR) 52 Confidence yet to flow, but operating leverage can deliver :: Avendus

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

24/5/12 - DII trading activity on BSE and NSE on Capital Market Segment.

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

Allahabad Bank Buy (Sharp rise in slippages; restructured assets leads to higher provisions) KJMC

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

Bharat Forge (BHFC IN) Initiating at Buy: Past Investment Phase :Jefferies

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

Petronet LNG: Rating : Buy Target : INR 195: FinQuest

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

Siemens - Weak Order Inflow To Moderate Growth ::nirmal bang,

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

Bata India | Highest ever quarterly sales growth; margin expansion continues :MF Global

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

Elecon Engineering Reducing visibility, Retain Hold :Emkay

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

Karur Vysya Bank (KVB) A re-rating candidate-Centrum

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

Rain Commodities' (RCOL) -TP: INR89 Buy -Motilal oswal,

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

24/5/12 - FII trading activity on BSE and NSE on Capital Market

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

Oberoi Realty Impressive Sales performance : Prabhudas Lilladher,

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

NSE, Bulk deals, 24-May-2012

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

BSE, Bulk deals, 24/5/2012

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

Dellta Corp Liimiited “Earniings poiised to grow exponentiialllly” :Nirmal Bang

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


Snapshot
By virtue of possessing three out of the six issued offshore
gaming licenses in the state of Goa, Delta Corp Limited (Delta
Corp) is the largest casino operator and only listed company in
the gaming and hospitality segment in India. The company is
rapidly expanding its gaming positions in Goa, and is currently
setting up a casino in Daman with full benefits to accrue from
FY’14E.
Investment Rationale
Gaming positions set to grow five-fold: The total gaming
positions of the company is set to grow five-fold over the
next 12-15 months with the addition of a third casino, and
the commencement of an upcoming gaming and
entertainment facility in Daman.
Fixed-cost business model, leading to significant
improvement in earnings: The company’s business model is
fixed in nature with salaries and administrative expenses
amounting to roughly 50 per cent of the total cost. Taking
the fixed-cost business model into consideration, earnings
are set to improve at a much higher pace compared to
revenues.
Geographical expansion: In addition to Goa, the company is
commencing its gaming and hospitality business in Daman,
and is also exploring possible avenues for expansion in new
markets within the region.
Real estate business in Kenya: Through a joint venture with a
wholly-owned subsidiary of RIL, the company is on track to
develop 1.2mn square feet on 10 prime plots in Nairobi.
Valuation & Recommendation
The complete benefits of the expanded facilities would be visible
in FY’14E. We expect revenues of the company for FY’14E to the
extent of Rs.709 crore and EBITDA of Rs.364 crore. The net profit
for the year should be around Rs.189 crore, translating into an
EPS of Rs.8.3. Owing to its niche business model with
strong entry barriers, robust expansion plans and a
focused management team, we expect Delta Corp’s
stock to quote at 12x FY’14E earnings to arrive at a
price target of Rs.100. This highlights an upside of 85
percent over the next 12 to 15 months.

Greaves Cotton Change in Core Strategy, Retain Buy: Emkay

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


n Weak performance in Q4FY12; Revenue growth of 5.4% yoy
to Rs4.4 bn and APAT decline of 26% yoy to Rs344 mn;
n Engines report lowest revenue growth (5.4% yoy) in last 9
quarters and Infrastructure reports highest loss (Rs41 mn) in
last 11 quarters
n Deviation in engine strategy, looking beyond the last mile
transport connectivity market for growth in engines segment
n Near term earnings risk offset by FCF yield of 8% in FY14,
Retain Buy rating with price target of Rs90/Share
Weak performance in Q4FY12, Delivers 26% decline in APAT
Led by decline in 3-W volumes in Q4FY12 alongside continued weakness in the
infrastructure segment, Greaves Cotton delivers weak performance in Q4FY12.
Revenues decline 1.8% yoy to Rs4.4 bn, wherein engines segment grew by 5.4% yoy to
Rs3.9 bn and Infrastructure decline 41.2% yoy to Rs383 mn. The Ebidta margin decline
100 bps yoy to 13.4%, led by higher operating spends and higher loss in infrastructure
segment. Consequently, Ebidta decline 8.9% yoy to Rs596 mn, staying below
expectations. Led by high other income in Q4FY11 and depreciation on new capacity,
APAT declined by 26% yoy to Rs344 mn.
Engines report lowest revenue growth in last 9 quarters and Infrastructure
reports highest loss in last 11 quarters
Engines grew by 5.4% yoy to Rs3.9 bn, lowest growth in last 9 quarters. It is largely
attributed to weakness in the 3-W market. But, Ebit margins expanded by 20 bps yoy
and 190 bps qoq; benefiting from price increases. Infrastructure segment continues to
weaken with 41.2% yoy decline in revenue to Rs383 mn and Ebit loss even widening
further to Rs41 mn. This is highest loss reported in last 11 quarters.
3-W industry declines; partially offset by ramp-up in Tata Motors
Q4FY12 was weakest quarter for the 3-W industry, reporting 4-5% decline in industry
volumes in January-March 2012 period. This is the weakest performance in last 10
quarters. However, good ramp-up in Tata Motors volumes to 5500/Month has partially
offset the decline in 3-W volumes.
Other expenditure bar is raised; FY13E would also see elevated levels
Negative surprise in other expenditure was seen in Q4FY12 and FY12. It has increased
21.8% yoy to Rs471 mn and 13.7% yoy to Rs1.5 bn. This is led by corporate branding
activity and costs associated with new facility. Management have hinted at sustained
high level of other expenditure in ensuing quarters as well.
New capacity commences operations at Ranipet; Other expansion to
follow suit
The 1st phase of auto-engines plant at Ranipet has commenced operations. The
expansion of 2nd phase is under-way, slated to commence operations in June 2012.
Also, Greaves Cotton has expanded capacity in agri engines from 1000/Day to
1500/Day.

Jyothy Laboratories Ltd. New CEO – a right step: IDBI cap

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


JYL’s Q4FY12 revenue was ahead of estimates led by better than expected performance from Maxo, which led to EBITDA beat as higher revenue led to almost break even for Maxo vs. PBIT loss of 9.7% in Q3. However, cost pressures (rising crude prices, guar gum prices and depreciating INR) were clearly visible with gross margin at 39.5% lowest since it listed in Dec’07. PAT was largely in line led by higher than expected interest expense at Rs134 mn (interest on loan taken from Axis Bank) vs. IDBIe Rs26 mn and Rs23 mn in Q3. Management indicated that sales momentum across brands in core business has improved QoQ and operations have largely stabilized as large part of distribution realignment is completed. Volume growth in both Fabric care and Exo (84% value growth, 75% volume growth) aided revenue growth. Even Maxo was strong at xx%, thereby showing early signs of revival in the growth trajectory. Management expects volume traction in Fabric care and Exo to continue led by ongoing brand building exercise, strong brand equity and completion of distribution realignment. In case of Maxo, mgt’s focus on liquids as also new TV commercial (to be telecast soon) will likely boost volumes, with growth rate aided by lower base (~1% growth in FY12). Management expects volume growth of 20-25% in JYL in FY13 (we factor in 15.4% growth). Henkel India (HIL) continues its improved performance with EBITDA margin at 13.4% in Q4FY12 from -6.8% in Q4FY11 (JYL took over HIL in Mar’11). Moreover, with Karaikkal strike (where Henko Champion is manufactured) being resolved on Dec 26, 2011 (strike resulted in revenue/EBITDA loss of Rs270 mn/Rs70 mn, with EBITDA to 3.1%), revenue is back to quarterly run rate in excess of Rs1 bn and EBITDA margin at >14%. Management expects 25-40% vol. growth in FY13 with EBITDA margin sustainable at ~15%, led by price hike of 8-12% across brands in Apr’12; however, arrested by uptick in A&P spends (TV commercials on Margo and Pril to be telecast soon). We raise FY13 revenue estimates by 4% (to factor in strong volume performance, especially in Maxo) and up EBITDA margin estimate by 30bps to 13.8% (mgt estimates ~16% OPM as sustainable; however, we are conservative led by crude/INR related cost pressures). However, our interest estimate goes up, resulting in earnings maintained at Rs10.9. Introduce FY14 estimates with revenue/EBITDA/EPS at Rs8.9 bn/Rs1.3 bn/Rs10.2 – up 16%/19%/down 6%. EPS is estimated to be down 6% as we estimate full tax from FY14 onwards (MAT credit available till FY13). Key takeaway from Q4 results was the appointment of Mr. S Raghunandan as the Chief Executive Officer and Whole Time Director of the company. Mr. Raghunandan has served as Managing Director with Reckitt Benckiser India and also worked at senior mgt level at leading FMCG companies like Paras Pharma, Dabur India and HUL, etc. We believe this is a step in the right direction and was much needed considering the large bouquet of brands under JYL + Henkel. In our view, this move should start reaping benefits in HIL over next 3-6 months. Reiterate BUY with SOTP valuation at Rs241 – JYL’s core business at Rs190; 84% stake in HIL at Rs36 (16x CY13E EPS of Rs2.2) and NPV of tax benefits on HIL’s accumulated losses of >Rs5 bn at Rs15. Management has categorically denied any near term possibility of stake dilution as also asset monetization, which will keep debt at elevated levels.

Infinite Computers: LOOKING UP : SPA Securities

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

Infinite came out with its 4QFY12 results, in-line with our estimates. The company has shown positive volume
growth of 0.5% to $53.1mn after two quarters of sequential decline. The FY12 revenue of $220.7mn and EPS of
INR 27.7 exceeded company's guidance. The company has guided towards a 30% USD revenue growth in
FY13E. We expect the company to exceed their EPS guidance of INR 34.3 in FY13E growing at 25.2%. With
higher than industry average growth rates we expect a rerating of the stock from the current 3x LTM PE
multiple to 5x with a target price of INR 190.
4QFY12 and FY12 Revenues - return to growth
The company witnessed a sequential revenue growth of 0.5% in
4QFY12 to $53.1mn (3.1% decline YoY). The onsite pricing declined
by 1.5% with stable offshore pricing. FY12 revenues of $220.7mn
(SPAe: $220mn) grew 14% on the back of growth from BFSI and
healthcare verticals (Others, up by 229% YoY).
Margins decline
Infinite witnessed a 468bps decline in EBITDA Margins for 4QFY12
(15.3%) over 3QFY12 due to (i) higher one-time contract manpower
cost with one of the largest customer's transition project coming
to end and (ii) INR appreciation. In FY12 the EBITDA Margins
expanded by 59bps to 17.3% but higher tax outgo caused a lower
PAT growth of 12.6% to INR 1,207mn
Growth Avenues
The company has hinted towards a USD revenue growth rate,
higher than industry growth rate, at 30% for FY13E. The EBITDA
Margins are expected to be lower at 16% from the FY12 margins
of 17.3% as the company expects to invest the surplus into
extending its next generation 3G messaging platforms products.


We expect the company to meet its revenue guidance on the
back of higher growth from recent deal wins and product
launches.
Outlook and Valuation
Infinite has exceeded its FY12 revenues and margin guidance on
the back of higher growth from BFSI and Healthcare verticals
and INR depreciation. We expect the growth momentum to
continue on the back of marquee deals (Messaging Platform)
and products (to be launched in 2QFY13). We have factored in a
USD revenue growth of 21%/25% for FY13E/FY14E. We expect the
margins to come off a bit due to (i) higher product investments
(ii) Visa Costs hence contract manpower increasing and (iii)
Wage Inflation though partially offset by INR depreciation. We
have factored EBITDA Margins of 16.9%/17.7% for FY13E and
FY14E. Thus on the back of higher than industry growth, stable
margins and exceeding company's guidance, we expect the stock
to be re-rated upwards. We continue to recommend BUY for the
stock with a 2 year target price of INR 190.0 based on 5x FY14E
earnings of INR 38.

Technical Report - 24.05.2012 -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 - 24.05.2012 -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 - 24.05.2012 -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



Market Summary - 24.05.2012 -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

Wyeth - Q4FY12 Result update/Estimate change::Centrum

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


Brands driven growth
Wyeth Q4FY12 results were better than our expectations. The company
reported 25%YoY sales growth against the industry’s 15%. The results of the
two quarters are not comparable as the previous quarter was 4m period
ending 31st March’11. Wyeth’s EBIDTA margin declined by 270bps YoY from
38.2% to 35.5% due to an increase in material cost and other expenses. The
company’s other income grew by 28%YoY from Rs60mn to Rs77mn. Wyeth’s
tax rate has come down from 32.6% to 30.5% of PBT. Net profit grew by
23%YoY. Wyeth has cash per share of Rs160. We have retained Buy rating for
the scrip with a target price of Rs1353 (based on15x FY14E EPS of Rs90.2).
􀂁 Strong revenue growth: During the quarter, the pharma business (94% of
revenues) grew by 26%YoY from Rs1.19bn to Rs1.50bn. OTC business (6%
revenues) grew by 12% from Rs80mn to Rs89mn.
􀂁 Margin under pressure: Wyeth reported 270bps drop in EBIDTA margin from
38.2% to 35.5% due to the increase in material cost and other expenses.
Wyeth’s material cost increased by 180bps from 32.6% to 34.4% of revenues
due to the increase in cost of imported raw materials, with the depreciation of
rupee. Other expenses grew by 240bps from 22.7% to 25.1% due to higher
marketing expenses. The PBIT margin of pharma business dropped by 40bps
YoY from 38.1% to 37.7%. PBIT margin of OTC declined by 3160bps from
19.2% to (-)12.4%

State Bank of India (SBI IN) Robust, led by lower delinquencies :IDFC cap

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


Q4FY12 result highlights
Quarterly performance: State Bank of India (SBI) reported PAT of Rs40.5bn (vs. Rs209m in Q4FY11; up 24% qoq), in line
with our estimate. While the bottom-line was strong, the quality of earnings was robust due to a decline in fresh
delinquencies, a 17bp qoq drop in gross NPA ratio (a decline of Rs4.2bn in absolute terms), lower NPA provisions, and also
a rise in coverage ratio. At Rs116bn (up 44% yoy), NII was lower than our estimate of Rs122bn on the back of a ~15bp qoq
decline in margins and sluggish loan growth.
Key positives: Notably, slippages came in lower than in the previous quarters (Rs43.8bn; annualized 2% of advances),
leading to a decline in NPA provisions made by the bank. The SME and agriculture segments saw a decline in slippages,
while retail remained resilient. As a result, provisions came in lower, at Rs31.4bn (vs Rs42bn in Q4FY11). NPA provisions
came off to Rs28.4bn from Rs30bn in Q3 and Rs32.6bn in Q4FY11. Despite the lower provisions, the coverage ratio
(including write-offs) increased by 560bp qoq to 68.1%. Incremental restructuring stood at Rs51bn (0.6% of loans; lower
than peers), with the outstanding restructured portfolio increasing to Rs372bn (4.2% of loans).
Key negatives: Reported NIMs contracted by ~15bp qoq to 3.9%. Advances growth was sluggish at 3% qoq and 15% yoy.
Impact on financials
With the bank’s strong focus on asset quality and profitability, we expect core performance to sustain its momentum.
Drawing comfort from the past aggressive NPA recognition and comfortable provision coverage ratio, we expect
provisioning costs to taper off gradually over next 12 months. We introduce our FY14 earnings estimates and expect the
bank to deliver a robust 25% CAGR in earnings over FY12-14, with RoA expanding to 1.1% from 0.9% in FY12.
Valuations & view
Affected by persistent asset quality pressures, the stock has corrected by 18% over past 12 months. However, we expect a
gradual alleviation of asset-quality concerns and a turn in the interest rate cycle to drive stock performance over the next 12
months. In light of this, we reiterate our bullish stance on the stock, with a current valuation of 1.1x FY13E P/BV and 12-
month price target of Rs3,000 (corresponding to 1.6x FY13E adjusted book; including Rs188 value for subsidiaries).

SIP is not just for returns :: Managing Director and CEO, ICICI Prudential AMC in Business Line,

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


The systematic investment plan (SIP) has since long been promoted as a superior investing tool for retail investors. While on one hand it instils discipline, on the other it protects investors from entry at a wrong point in the usually volatile equity markets.
The wisdom behind this investment tool has several facets, and not mere performance. But this concept has been sold so far merely on the premise of numbers.
This seems to have contributed to the fall in the number of new SIP accounts added by the mutual fund industry.

FALL IN NEW SIP ACCOUNTS

The rate of addition of new SIP accounts in the industry peaked at around 2.5 lakh in July last year. That has since steadily declined by more than 50 per cent to 1.25 lakh in March.
More worrisome is that many SIP investors have discontinued their accounts.
The net addition of new SIP accounts in the industry has, therefore, turned negative month over month. As a result, the total number of active SIP accounts for the industry fell from 46 lakh to 43 lakh during the financial year 2012.
The fall in SIP accounts is not only counter-intuitive, but also self-defeating for investors. In subdued markets, investors should be advised to increase allocation to equity for cost averaging.
The asset management companies have propagated virtues of investing systematically and so have the advisors. If all the stakeholders agree, there should have been no reason for a slowdown in the SIP numbers at the industry level.
The relevant question that we must ask therefore is that what is the basic premise for offering SIP to investors.
Is it merely for performance? For cost averaging? For investing discipline?

MORE ENCOMPASSING

The proposition for SIP has to be more encompassing. Historical performance is important, but that is not the only consideration.
It is critical to articulate the discipline and cost-averaging aspects. At low market levels, a lower cost of acquisition pulls the average down thereby making the overall approach successful. It hence makes eminent sense to enhanceinvestments through SIP under market conditions such as the present one.
The next important step is to link SIPs to financial goals and target values rather than market levels. A financial plan will be the guiding tool for allocation.
SIPs will play a crucial role in linking financial goals to personal circumstances. SIPs then will not be a mere tool for investing over some years, but a lifelong habit.
It will not be an exaggeration to say that penetration of mutual funds is in many ways linked to the success and acceptance of the concept of SIP in India. As long as the product and the asset manager have been selected diligently, it is discipline and patience that will make all the difference.
(The author is Managing Director and CEO, ICICI Prudential AMC).

Consumers, fight for your rights! :: Business Line,

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


If the consumer forum rules in your favour, you can ask for setting right the defect in the product or a return of price paid.
Did your new iron box conk out? Was the packet of tur dal from the supermarket adulterated? Did the neighbourhood kiranawala charge you more than the MRP on a bottle of packaged water?
Don't brush aside these issues. Fight them legally. Consumer forums are strong today. If you prove your case, you will be compensated for the loss.
We tell you the procedure for filing complaints in consumer forums and getting them resolved legally.

LEGAL ACTION

For any problem, your first point of contact should be the seller. If he turns a deaf ear to it, write to the manufacturer. Most products have a toll free number on the carton.
If there is no appropriate action from the manufacturer, move to the consumer forums. These forums are constituted under the Consumer Protection Act, 1986 and resolve consumer problems legally. Complaints have to be filed within two years of the date of the incident.
Complaints of the nature of defect in the purchased product and cases where the quality of the product (or service) is below the acceptable standard and where the consumer is charged a higher price than the MRP printed on a product's cover are addressed here.
Consumer forums function at three levels. In case where the price of the product or value of the compensation expected is below Rs 20 lakh, it should be taken to the District Consumer Forum. For complaints on a product or service of value between Rs 20 lakh and Rs 1 crore, the State Commission (of the State where the manufacturer is head quartered) has to be approached. When the product value or compensation expected is above Rs 1 crore, then, one should take it to the National Consumer Disputes Redressal Commission (NCDRC).
However, if you are not satisfied with the judgement from the District consumer forum, you can appeal to the State and then to the National commission within 30 days of receiving the order.
It is mandatory to pay a nominal fee at the time of filing a complaint with either the District or State commission or the NCDRC. NCDRC charges a fee of Rs 5,000 for each complaint.

AVAILABLE REMEDY

If the case is proved in your favour, you can ask for setting right the defect in the product or a return of price paid. You can also seek a compensation for the cost incurred or for the loss or injury suffered. In case the product is proved to be hazardous for health, you can even ask for withdrawal of the product from the market.
How quick and efficient are these forums? The NCDRC has, so far, resolved 86.4 per cent of cases filed with it. The State Commission of Tamil Nadu has resolved 91.85 per cent of cases and State Commission of Delhi has solved 94 per cent of cases that have been filed with it.
So, you can be assured that the problem will be sorted. But, there is no assurance on the time within which it will be resolved. Depending on the nature of the case, the final judgement may take its own time.

DOCUMENTATION

You need supporting documents when filing a case. First is a written complaint which should carry your full name and address, the name and address of the opposite party, date of purchase of the product and price paid for it and details of the complaint with the help sought.
You should also have the original copes of the bill, guarantee/warranty card and also proof of communication with the merchant and the manufacturer. It is advisable to take the guidance of a legal expert when filing a complaint.
After filing the case a consumer can track it online throughconfonet.nic.in.
By specifying the commission (district/State/national) and the case number, you will know the status of your case or the date of next hearing.

Gold equities riskier than gold :Business Line

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


The option to play the commodity theme is limited in the Indian equity markets.
I hold the following funds, invested over the past five years in systematic investment plans (SIPs) as well as lumpsum: Fidelity Equity, HDFC Top 200, HDFC Equity, HDFC Growth, HDFC Long Term Advantage, HDFC Tax Saver, Magnum Comma, Magnum Tax gain, DSP BR Balanced, DSP BR World Gold, IDFC Premier Equity, Reliance Growth, Reliance Diversified Power Sector, Reliance Pharma and Banking funds, Canara Robeco Balanced and Canara Robeco Infrastructure. The current value of the above is Rs 15 lakh.
I am now investing Rs 33,000 monthly over the past one year in the following funds. SIPs of Rs 5,000 each in DSP Blackrock Balanced, DSP Blackrock World Gold Fund and HDFC Top 200. Systematic transfer plans (from liquid funds) of Rs 8,000 in HDFC Growth, Rs 5,000 in IDFC Premier Equity and Rs 5,000 in Fidelity Equity.
 I am 35 and plan to accumulate Rs 1 crore in 10 years. I can save up to Rs 50,000 a month. Please suggest changes, if needed. — Mukunth
You have not stated whether you can stomach some risks. But given that you have a sizeable surplus for investing and have a 10-year time frame, you need not subject your portfolio to undue risk. This means you can cut down on relatively risky theme funds. You can also do with a more compact portfolio that will provide sufficient exposure to various fund strategies.
 Let us first downsize your portfolio. We suggest you hold HDFC Top 200 and HDFC Growth and do away with the other HDFC funds. Please note that they have all done reasonably well. We only want to avoid concentration in one fund house and also avoid duplication. Exit Magnum Comma. It is an underperformer. Besides, the option to play the commodity theme is limited in the Indian equity context. Exit Magnum Taxgain. It has delivered only 4 per cent annually over the last five years.  Retain IDFC Premier Equity. Switch from DSP BR Balanced to HDFC Balanced. Hold Canara Robeco Balanced. If you are holding Reliance Growth for an exposure to mid-cap stocks, you can switch to ICICI Pru Discovery. Reliance Growth is no longer a pure mid-cap fund. Besides, its performance has slipped in recent years. 

THEME FUNDS

Reliance Diversified Power Sector fund is too risky, given the volatility in the capital goods cycle. It has to be actively tracked. We suggest you exit it. While Canara Robeco Infrastructure is among the better performers in the infrastructure theme, there are too many extraneous factors that affect the performance of stocks in this space. You can do without the fund.
Reliance Pharma has delivered exceedingly well as the theme was seen as a defensive play in the last couple of years. But the risk applicable to other theme funds holds good for this scheme too. We suggest you book some profits in the fund and hold your capital in it only if you can monitor its performance.  Hold Reliance Banking. As a theme, banking is less cyclical, but is linked to the performance of the economy. Given your long-term goal, you can hold this fund for another five years.
DSP BR World Gold is a fund of funds that invests in stocks of global companies that mine gold. It is risky as its fortunes are not only linked to that of gold prices but also to the vagaries of equity markets. If you are looking at an alternative asset class, you can invest up to 10 per cent of your portfolio in gold ETFs/fund of funds from Goldman Sachs, Reliance or UTI.

CURRENT SIPS

Stop your SIPs in DSP BR World Gold. Go for the above gold funds if you wish to. If you are comfortable with the management change in Fidelity, continue with it. Otherwise switch to Quantum Long Term Equity. Continue the other SIPs but move from DSP BR Balanced to HDFC Balanced.
 While we do not know the individual values of your lumpsum investments, we assume you will have only about Rs 5 lakh after selling some of the funds we suggested.
Of the remaining Rs 10 lakh of sale proceeds, use a part to start an SIP of Rs 5,000 a month in Quantum Long Term Equity. Invest the rest every year in National Savings Certificate and provident fund (if you already have a PPF account running for 5 years now). You should be able to achieve Rs 1 crore, if the diversified funds deliver 15 per cent, the mid-cap funds at least 18 per cent and gold 8-10 per cent annually. 

Tata Dividend Yield Fund: Invest :Business Line

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


Franklin Prima Fund: Hold :: Business Line

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


Invest without a home country bias :ASK Wealth Advisors Pvt in Business Line

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


Rather than trying to invest in a few stocks, currencies or markets based on partial and selective wisdom attained through sensational news clippings or business channels one should look at building a solid diversified portfolio of funds.
Sensex has delivered annual gains of less than five per cent over the last five years. This makes the hunt for new investment avenues quite natural. Over the last couple of years disenchanted Indian HNI equity investors have been moving away from equities to other asset classes such as commodities, real estate, debentures, direct Private Equity investments and so on. A plethora of of tax-free bonds issues such as NHAI and RECs last year further explains this phenomenon.
The quest for better returns have made Indian HNI investors evaluate offshore investment options to add alpha to their portfolios.
Empirical evidence suggests a strong home country bias in all investor portfolios, thereby restricting not only the objective of diversification but it also makes investors miss good opportunities outside the home country.
Prior to 2004, before Liberalised Remittances Scheme (LRS) was launched by RBI, capital controls were the first stumbling block for Indian investors to venture outside India.

MULTIPLE AVENUES

Now there are multiple ways in which global exposure could be added to portfolio. One of them would be to use the $2,00,000 LRS mechanism to open an offshore investment account and build a portfolio for global Funds, stocks or ETFs.
The other easier and simpler way will be to take advantage of many feeder funds launched by Indian MF companies which use investments made in India in rupee to invest/feeds into a global fund.
The rationale of adding global investments in portfolio are plenty. Currency and geographical diversification giving opportunity to invest in economies and companies that do not have risk-reward characteristics like India is one of them.
The other significant advantage is the ability to invest in sectors/ themes which are generally not available in Indian markets. Agriculture, Oil, Internet/E-commerce, Water, etc, are some areas which have good potential, but do not offer investment vehicles in Indian markets due to sector-level regulatory restriction or lack of developed market for those themes.
Since it is impossible to predict which stock/fund/manager will do best in next one to three years, investors divide their investment between 4-5 good managers/funds. The same logic can be extended to r stock market for promoting geographical diversification.

ABYSMAL PERFORMANCE

Given its robust growth and favourable demographics, no analyst could have predicted India's abysmal performance in 2011, both for stocks as well as currency. On the other hand, US markets grappled with slowing demand and credit squeeze.
But in 2011 when US markets delivered positive five per cent returns, India was down by more than 24 per cent. Add another 15 per cent or so for INR weakness and the strength of argument multiplies many folds.

BUILD SOLID PORTFOLIO

While there are many obvious merits of offshore investments, we should also acknowledge and be aware of the fact that the global investment world is lot more diverse and complex. Hence, maintaining a disciplined investment approach is the key to success. Rather than trying to invest in a few stocks, currencies or markets based on partial and selective wisdom attained through sensational news clippings or business channels one should look at building a solid diversified portfolio of funds.
Another factor to avoid should be to steer away from fads and media hype. Current hype about Facebook IPO is the case in point. While I have no doubts of the power of social networking and the impact Facebook has made to millions of people's everyday life, I am not adequately experienced to evaluate the business model, financials and future prospects for the company.
Hence, rather than taking a direct hit by buying share in IPO, I would rather invest in a US market or a technology fund and leave it on the judgment of fund manager on whether to invest and how much. We have seen many examples in the past where investors have rushed in for the trade based on media frenzy and were later left holding the hat when the music stopped. Silver trades in recent past are a good reminder of the same.
Preserving and growing wealth is not as difficult as creating or building it. An easy way to achieve this objective is to keep investment disciplined, simple and away from any exuberance. A share of global investments to the tune of anywhere between 10-15 per cent of portfolio is a sound strategy. In the current world of uncertainties and surprises, this is an investment principle which can benefit all investors.
(The author is Director, Wealth Advisory and Family Office Solutions, ASK Wealth Advisors Pvt Ltd. The views are personal.)

Go easy on debt for higher surplus :: Business Line,

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


I am 34 years old. My dependents are my wife and a 5-year-old daughter My monthly net salary is Rs 1.30 lakh.
Expenses are Rs 70,000 inclusive of rent, household expenditure and payment of a personal loan EMI of Rs 26,000. This EMI will continue till next July, out of which Rs 8,199 shall end this July.
My monthly credit card bills generally amount to Rs 30,000. The surplus is invested in equity and PPF. My direct equity exposure after a Rs 2 lakh loss is Rs 4 lakh. I opened a PPF account last year and my current balance is Rs 70,000. Monthly contribution in EPF is Rs 9,000 and current outstanding is Rs 5.5 lakh.
I want to buy a house worth Rs 90 lakh next year.
I also wish to accumulate Rs 40 lakh (in present value) for my daughter's education — an engineering degree plus a MBA.
Next year I may take a personal loan of Rs 10 lakh for my sister's marriage.
I will retire at 58. I have no pension in my employment.
What is the corpus to be accumulated?
I have no term insurance or health insurance policy. I can take higher equity exposure.
— Sandeep Mishra
Taking a loan for consumption without due care can be detrimental to asset building. Your monthly expenses are Rs 70,000 and beyond that your credit card spending is Rs 30,000. This shows your lack of discipline in managing outflows.
Before enlarging your debt, take a clear cut view of your long term goals. Having excessive debt can be a big stress factor. True, there may be some family commitments that can't be avoided such as sister's marriage. But henceforth be judicious; use debt as a tool to build assets or to meet only some pressing needs.

HOUSING LOAN

With new RBI regulations in place, you are entitled to only 80 per cent of the property value as loan. Registration cost will not be part of the loan. If you want to buy a property for Rs 90 lakh, you should have Rs 18 lakh for down payment. Besides, there is a registration cost of 6 per cent of undivided share to contend with. Going by your current surplus this will be a tall order.
If you borrow Rs 72 lakh for a 20-year period at 10.75 per cent, your EMI will be Rs 73,100.
Down payment will be a issue; either you should wait for a few more years to build your resources or downsize your aspirations.
In such a case withdraw from EPF and dilute your equity investment to buy a flat.
If you let out your house for at least a few years, it will help you deduct the entire interest of Rs 7,50,000 and it will enhance your surplus. This will help you borrow for your sister's marriage.

EDUCATION

Saving for this goal hinges on your home loan. If you move to your own house, you can save on rent and this will increase your surplus or let out the new property so that the rental income is more than the current rent. For graduation, if the present value of Rs 25 lakh is inflated at 7 per cent, it will be Rs 56.3 lakh in the next 12 years. To reach this target you need to save monthly, a sum of Rs 17,650 and it should earn 12 per cent return. For MBA you should save a sum of Rs 7,700 for 192 months to reach Rs 44.3 lakh.

RETIREMENT

If the present annual living cost of Rs 3 lakh is inflated at 7 per cent, at 58 you will need Rs 15.2 lakh. To receive such an income post retirement, you should have a corpus of Rs 3 crore and it should earn inflation adjusted return of one per cent.
With your EPF contribution of Rs 9,000 a month and your employer too chipping in with a similar amount, at retirement your balance will be Rs 2.52 crore. This argument holds if your basic pay increases at 5 per cent and the fund earns 8.5 per cent. The balance can be met through your gratuity and with current balance after paying off the home loan. You can construct a portfolio with 70 per cent in equity and 20 per cent (inclusive of the EPF) in debt and 10 per cent in gold. If you don't have enough time to manage direct equity, it is advisable to invest in MFs.
Considering your lifestyle and the future liability, buy a term insurance policy for Rs 2 crore and health insurance for Rs 3 lakh.

How to achieve financial freedom :: Business Line,

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


Your primary financial objective should be to achieve freedom — a state where you do professional work because you want to, not because you have to! Most of you may be taking efforts to invest so that you can retire rich. But are you paying attention to your spending habits as well? In this article, we discuss about your spending decisions and its relevance to financial freedom. We also discuss how you can set up a process to moderate your spending habits and stay on the path to financial freedom.

SPEND WISE

You need to set up passive income streams to achieve financial freedom. Passive income refers to income that you can generate without continually working for it. Investment income is one such example. You need to save each month and optimally route the money into investments to build the required passive income. Your spending habits are, therefore, important, as savings is a function of your expenses.
Now, spending decisions are personal. You may believe that buying a home-theatre system is not as important as joining a professional development program. And it is difficult to argue which is better!
Your financial adviser can guide you on certain spending issues. If you have large credit card debts, your adviser can help you plan your repayment schedule or prioritise your debt repayments. But your adviser may not be of much help in telling you whether to buy an air-conditioner (AC) and if so, whether to buy a three-star or a four-star energy efficient AC.
Such decisions are not easy to make. Is the saving on energy costs more than the higher upfront cost for a 4-star AC? The answer would depend on energy prices and your usage of the AC, both of which are not easy to forecast! You should instead focus on high-value spending- trying to bargain-hunt when you buy a car or a house. Seek, if you must, advice on matters of high-value spending, but help yourself on matters relating to regular spending decisions.

SAVE FIRST

To moderate any adverse effect that your lifestyle expenses can have on your financial freedom, first take out at least 10 per cent of your monthly income. This will be your savings each month. You should set up systematic investments (equity mutual funds, recurring deposits and so on) to channel your savings.
This means you have not more than 90 per cent of your post-tax income to spend each month. Your home loan repayment or rental cost will account for the maximum proportion of your total monthly expenses. While home loan is good leverage, structure your loan repayment such that it accounts for not more than 35 per cent of the total monthly income. This leaves you with 55 per cent of your income to spend on regular and occasional expenses.
If you are not disciplined in your spending habits, you should earmark envelopes for each expense at the beginning of the month. You may, for instance, decide to earmark Rs 7,500 towards groceries. This way, you can keep a check on your spending. The use of credit cards can upset this equation! So, beware.
You may require consumer durables to maintain a desired lifestyle. This would include products such as TV and washing machine. You should manage these expenses within your post-tax monthly income and windfalls, if any. Otherwise, set aside a portion of your monthly income for such spending and purchase when the accumulated amount is sizable.

Fund Basics: Be diligent, update your details :Business Line

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


Mutual funds offer a facility to register up to five bank accounts for individuals in their folios.
In line with the recommendations issued by the Association of Mutual Funds of India, most mutual funds now do not register a change in bank details that is given along with a redemption request.
Redemption proceeds will be credited into the bank account in the folio or into a registered account indicated in the transaction slip. A new bank account would have to be registered at least 10 days before redemption is made.
Keeping folio records updated with the correct bank details is of vital importance. In this article, we discuss the requirements for registering new/additional bank accounts in mutual fund folios. Investors may check the addendums issued by the funds for any fund-specific requirements.

STAND-ALONE REQUEST

For changing many personal details in investors' folios, a written request duly signed is usually enough. However, for changing bank details, mutual funds now require additional requirements.
Along with your request letter, most funds now require documentary proofs for both the new bank you wish to update in the folio as well as the old bank account already registered. You need an original cancelled cheque leaf where the account number and the first unit holder's name is printed on the face of the cheque. The cheque leaf for both the old and new bank accounts should be submitted, as the case may be.
In case the customer's name is not printed on the cheque, a certified copy of the bank pass book or bank statement (not more than three months old) having the name, account number and address of the account holder may be submitted (again for both the old and new account). The copy should be certified by the bank manager with his/her full signature and name, and the bank seal.
An alternative to the above two is a letter from the bank on its letterhead, in original, certified by the bank manager with his/her full signature, name and employee code, and the bank seal. This should certify that the unit holder maintains/maintained an account with the bank, with details of the account holder's name, address and bank account number (if the old bank cheque leaves/recent account statements are not available).
Mutual funds offer a facility to register up to five bank accounts for individuals in their folios. A form is available at all fund Web sites for the addition/deletion of bank accounts and this is to be filled, signed and submitted with the attachment named above as proof of the additional account(s).
After you have registered additional accounts, if any account is closed later, you may fill the portion of the same form for the deletion of a registered bank account.

DEFAULT BANK ACCOUNT

While registering multiple bank accounts, any one bank account should be chosen as default where all dividends/redemptions would be paid out.
Investors can ask for redemption proceeds to be paid to any of the accounts registered in the folio and this can be mentioned in the redemption transaction slip. If you do not mention any bank in the transaction form, it will be paid into the default account.
(Contributed by CAMS Viveka, an investor education initiative from CAMS. The views are general practices in the mutual fund industry and may vary according to the case).