FII DERIVATIVES STATISTICS FOR 25-Mar-2013

FII DERIVATIVES STATISTICS FOR 25-Mar-2013
	BUY		SELL		OPEN INTEREST AT THE END OF THE DAY
	No. of contracts	Amt in Crores	No. of contracts	Amt in Crores	No. of contracts	Amt in Crores
INDEX FUTURES	168576	4801.01	161489	4603.00	486880	13755.77	198.01
INDEX OPTIONS	722081	20544.86	729508	20681.60	2105727	59266.21	-136.74
STOCK FUTURES	277564	7838.93	276467	7841.25	900932	25263.75	-2.32
STOCK OPTIONS	52088	1434.54	58309	1598.93	112362	3043.80	-164.39
						Total	-105.44

 

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FII & DII trading activity on NSE, BSE and MCX-SX 25-03-2013

Category		Buy	Sell	Net
		Value	Value	Value
FII		3366.18	2648.29	717.89
DII		1089.57	1515.18	-425.61

 

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Attractive FD Schemes

a)  Government Company FD Schemes with IT Benefit u/s.80 C

      --------------------------------------------------------------

 

Company Name	Rate of Interest	Addl. Interest for Senior Citizens	Rating	Lock-in period
NHB Suvriddhi	9.25%	0.60%	CRISIL "FAAA"	5 years
HUDCO	9.00%	0.25%	"CARE AA+(FD)"	5 years

 

b)  Quality Companies Offering Attractive Return :

      -----------------------------------------------

 

Company Name	Period (in months)	Rate of Interest (%)	Addl. Interest for Senior Citizens (%)	Minimum Amount
DHFL Aashray Deposit Plus	40	10.75	0.50	10000
Elder Pharmaceuticals Ltd	36	11.50	0.50	25000
HDFC Ltd - Platinum Deposits	33	9.40	0.25	20000
Mahindra Finance - Samruddhi	36	10.25	0.25	10000
Shriram Transport - Unnati	36	10.75	0.25	25000
Sudarshan Chemical Industries Ltd	36	11.00	0.25	25000
United Spirits Ltd	24	11.50	-	25000

 

Invest before interest rate comes down.

 

Invest for a longer tenure and lock the money when interest rates are attractive.

JPMorgan:: Larsen & Toubro :: Eyeing international opportunities to overcome domestic deficit

In our meeting with L&T management, we sensed skepticism on the domestic
capex cycle and focus on ramping up share of international business. As per
management, a fresh investment pickup in domestic thermal generation will
take another two years. In the near term, India road sector outlook remains
muted (though past the bottom, in our view). Domestic B&F and T&D
inflows for L&T in FY14E are likely to be flat on a high base in the current
fiscal year. The hydrocarbons space continues to be very competitive, as per
management. These inputs serve to corroborate our views (see our 5th Mar
report). The international opportunity that L&T is eyeing assumes more
significance than ever before, given likely delays in recovery of the domestic
capex cycle.
 L&T in consortium with international players has placed bids for a
portion of ~US$30B of Middle East infrastructure projects, we estimate
L&T's share of the bid opportunity at US$3.5B. L&T has bid for two
metro projects (Doha & Riyadh - US$7-8/B each), the Etihad railway
project (US$11B) connecting all the seven Emirates and a 265km road
project in Oman (~US$2.6B) as part of international consortiums. The
number of bidders goes up to 10-15 for the road and railway projects,
whereas the metro projects have 4-8 pre-qualified consortia with more
members (see details inside the report). As per L&T, EBITDA margins on
the Middle East infra projects could typically be 200bps lower than similar
projects in India.
 Making the best of the domestic deficit, but paying for deferment of
opportunities. L&T is a part of one of the two consortiums that have been
pre-qualified for the first package (US$1.2-1.4B) of the western freight
corridor. L&T continues to maintain its positive stance on the metro rail
opportunity in India. We expect a substantial portion of Delhi Metro-III
(US$6.5bn) and Kochi metro (US$1bn) to be awarded through FY14.
Deferment of domestic order opportunities in defense and nuclear, come at
a cost for L&T. Recently commissioned Katupalli shipyard and Hazira
forging unit involved combined capex of ~US$800mn and could remain
underutilized adding to interest burden at consolidated level.
 Near term, we expect fresh order announcements: With only ~Rs34bn
orders reported so far in Mar-q, time is running out for L&T to inspire
confidence in traditionally strong Mar-q inflows (Rs230bn JPM est).

Speciality Restaurants - Management Interaction Takeaways - Centrum

Management Interaction Takeaways

Speciality Restaurants

Buy

Target Price: Rs232

CMP: Rs168

Upside: 37%

Expansion on track

We recently interacted with the management of Speciality Restaurants to get their feedback on business environment. The key highlights are:

m  Restaurant opening on track: New restaurant addition is on track as the company currently has 82 restaurants of which 23 are franchisee. The management maintained that they will open 16 restaurants each in FY13 and FY14 respectively in the owned format. The company is also launching its Italian restaurant, Mizona, in Pune in the first week of April which is an all day bar and eatery catering to the age group of 16-30 years and is currently under trial runs. It plans to further scale up this brand in small areas by carving out areas from Mainland China which will help the company reduce cost.
m  Consumer demand remains lackluster: The management said consumer demand continued to be lack-luster and under pressure. Corporate spends had reduced significantly impacting business. To mitigate the pressure, the company is introducing schemes such as ‘Dine by 9’, buffet at Rs678 on weekdays and buy 4 and take 5 dishes. They believe this has given consumers some benefit, increasing footfalls.
m  Price hike inevitable from April 2013: The management is raising prices by 4-6% from April 2013 across restaurants. This will be the first hike since September 2011 and will help the company mitigate raw material cost pressure. We believe same store sales growth will be 7-8% for FY14 on the back of increasing churn from H2FY14.
m  Exploring acquisitions in QSR category: The Company is considering an acquisition in the QSR category and is in advanced stages of negotiations to close the deal within the next couple of months. It will be a non-pizza American QSR brand with a small presence in a particular city. The management does not want to spend more than Rs300mn on the acquisition and expect to leverage the synergies and scale up operations further.
m  Entry into international markets: The management is considering leveraging its brands in the international markets and plans to launch restaurants in the UK, Middle EAST and Singapore in FY14. The company is planning to open Oh!Calcutta restaurants in London and Singapore and introduce Mainland China and Flame & Grill restaurants in West Asian countries such as the UAE where seven restaurants, mostly in malls, are being planned. Entry into UAE will follow the JV route but in other markets it will be through franchisee.
m  To tap outdoor catering business: This business has the potential to reach Rs100cr over the next couple of years. Currently, the company has pilot tested this business in Kolkatta and is further expanding it in Chennai and Mumbai. The company has launched a brand “Mobifeast’ for this business. It has bagged a few big orders including one from KKR IPL franchise. This business is expected to have 40% operating margins.
m  Takeaway and delivery business to contribute 10% of topline: The Company is expecting to start a takeaway & delivery model which could have the potential to garner 10% of the topline in a couple of years from 3% currently. It has tied-up with Just Dial for the back end call centre operations for this business. This could further increase same store sales growth and add to the margins.
m  Financials: We expect the company to post revenue of Rs2252mn and Rs3207 for FY13 and FY14 respectively. Operating profit will be Rs375mn and Rs648mn over the period. We expect margins to expand from 16.6% in FY13 to 20.2% in FY14E on the back of gross margins expansion coupled with operating leverage. PAT will be Rs227mn and Rs411mn over the same period
m  Attractive Valuations: The stock is currently trading at 35x and 19.3x FY13E and FY14E respectively. We value the company at 20x FY15E EPS of Rs11.6 with our target price of Rs232 and maintain BUY rating on the stock. Though near term uncertainties remain, we are confident on long term growth on the back of its focus on increasing same store sales growth, track expansion plan, foray into international markets, venturing into catering business coupled with margin expansion on the back of economies of scale.

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Aurobindo Pharma - Company Update - Centrum

Aurobindo Pharma

Buy

Target Price: Rs245

CMP: Rs140

Upside: 75%

US performance to excel

We recently interacted with company officials of Aurobindo Pharma (APL) to get the latest update on the company. The key highlights are:

m  Unit VI cleared by US FDA: APL has received Establishment Inspection Report (EIR) for its Unit VI manufacturing cephalosporin oral and sterile products. The unit was under Import Alert from February’11 and was re-inspected by US FDA in September’12. The current potential from this unit is $25-30mn (Rs1.35-1.60bn) annually. The company will commence exports from this unit from April’13.
m  Other two units cleared: APL’s other two manufacturing units, Unit IV manufacturing general liquid injectables and Unit XII manufacturing SSP-oral and sterile have also been cleared by US FDA after re-inspection in Q3FY13. The company’s US subsidiary Auromatics is likely to market the products from these two units. The company expects revenues of ~$30mn (Rs1.60bn) annually from these two units.
m  Strong performance in the US:  APL’s formulation exports to US grew by 58%YoY from Rs3.25bn to Rs5.13bn. The company received approval for 7 ANDAs during Q3FY13 for Rizatriptan Benzoate tablets, Felodipine ER tablets, Oxacillin injection, Levofloxacin injection, Pioglitazone tablets, Pioglitazone+Metformin tablets, Valsartan+Hydrochlorithiazide tablets. The combined market size for these 7 products at the innovator level is $4.86bn (Rs262bn). All these products are likely to contribute to the full year from FY14 onwards.
m  Strong product pipeline in the US: APL has filed 262 ANDAs with US FDA of which 171 were approved by the end of Dec’12. The company has filed 1337 dossiers in Europe.
m  Penicillin, cephalosporin business growing well: APL’s SSP and cephalosporin API businesses have grown by 36% and 30% respectively due to favourable demand and lower competition. The company intends to maintain good growth in these segments in the domestic and emerging markets.
m  New geographies added: APL has entered into new geographies of Canada, Japan and Australia. It has received 37 ANDA approvals in Australia and 26 in Canada. The company expects revenues from Canada and Japan from FY14. The revenues from Australia are expected from FY15 onwards.
m  Dossier income: APL received Rs386mn ($7mn) from the sale of dossiers in Q3FY13. Dossier income keeps on varying based on the filings of the generic company. The company expects revenues of $2-3mn (Rs108-162mn) per quarter. This is a high margin business as the costs are already accounted for in the previous quarters.
m  API reports 21% growth: The company’s API business (40% of revenues) grew by 22% during Q3FY13. Major growth drivers were SSP and cephalosporin which grew by 36% and 30% respectively.
m  Debt repayment: The company has debt of Rs33.0bn (including working capital) currently. It is likely to repay $50mn (Rs2.7bn) from internal accruals in FY14. The repayment of ECB of ~$40mn (Rs2.16bn) annualy will fall during FY15-FY19 and most likely will be met from internal accruals.

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