29 September 2014

Indians to see 10.8% salary hike in 2015: Towers Watson

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Employees in India are expected to see a 10.8 per cent salary hike in 2015, even as pay increases across Asia Pacific region are set to rise by an average 7 per cent in the coming year, says a report.

As per the Towers Watson 2014-15 Asia-Pacific salary budget planning report, which included 2,900 sets of responses received from over 300 different companies across a range of industry sectors and job grades from 20 countries, said Pakistan, Bangladesh and Vietnam are set to lead the way with over 11% overall salary increases while India is placed at No.4 with an increase of 10.8%. However, a corresponding rise in inflation in the region implies that pay increases in 'real terms' will be eroded in the coming year, the report added. 

As per the report, China rises to the top with a real salary increase of 5.2% after allowing for inflation, trailed by Pakistan (4.5%), Bangladesh (4.3%), Vietnam (4.1%) and Sri Lanka (3.8%). India drops down by two places to No.6 with a corresponding real increase of 3.5%. 




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Shemaroo IPO UPDATE:: Grey Market Premium; Listing details

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Shemaroo Entertainment IPO Grey Market premium
Rs 4-5

Retail got at Rs 153; Listing expected around Rs 150-160
WILL BE VERY VOLATILE and depend on Market up/down on that day
SELL and make profit if you can.


Listing date:
1st Oct (Wednesday) or 7th Oct (Tuesday) (to be confirmed)

Note market closed from 2nd Oct -6th Oct


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Vibrant Global Capital IPO: Avoid -- Expert, VS Fernando

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A 62% subsidiary is making an offer for sale of holding company's shares. Another 83% subsidiary is holding a significant stake in the parent company. How the majority-owned subsidiaries were allowed to hold the shares of the holding company raises serious corporate governance issues.
OFFER AT A GLANCE
Issuer NameVibrant Global Capital Ltd
Offer AmountRs 11.48 cr
Offer QuantityFresh issue of 30 lakh shares & offer for sale of 30.42 lakh shares of Rs 10 each
Offer on Total Equity26.40%
Post-issue Promo stake54.00%
Post-IPO CapitalRs 22.91 cr
Offer PriceRs 19
Application Quantity6000 & Multiples of 6,000
Offer Opens29-Sep-14
Offer Closes07-Oct-14
ListingSME Platform of BSE
RatingNil
Lead ManagerHem Securities
UnderwriterHem Securities (100%)
Market MakerHem Securities
RegistrarBigshare Services














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Momai Apparels IPO: Oversubscribe 1.13x HNI, 0.69x retail 0.92x Overall

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Momai Apparels IPO: Oversubscribe details end of day 29 Sep
1.13x HNI,
0.69x retail
0.92x Overall


Small cap stock... risky but likely to give return

If you apply then
Apply at lower price band of Rs 78/-
Minimum application Rs 1,24,800/-

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Federal Bank - Moving in the Right Direction : Edelweiss PDF link

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We recently interacted with Federal Bank’s (FB) top management, which is confident of clocking 20% plus growth in FY15 as: (1) post a successful consolidation phase, it is well geared to capitalise on the much anticipated macro recovery, which will feed into higher corporate demand (likely in H2FY15); and (2) continued traction in SME and retail. Though the slipping cost-income ratio does strike a sour note as past investments are yet to bear fruits, rising productivity riding on improved revenue traction is bound to lower the ratio (45% target by FY15), which in turn will boost return ratios. This, coupled with stable/improving margins, augurs well for operating performance. Management is confident of sustaining the past 3 quarters’ asset quality improvement as the pipeline of stressed accounts is shrinking. Further, minimal exposure to companies impacted by coal mining de-allocation lends comfort.
Armed with requisite fire power for growth
FB’s conscious strategy of sharpening focus on debulking corporate book and on quality took a toll on growth in FY14. However, SME and retail (ex-gold) continued to thrive, growing 26% and 16% YoY, respectively, during the year. Our optimism that the bank is well entrenched on the growth track stems from: it successfully navigated the consolidation phase (debulking of corporate portfolio), SME/retail are holding the fort brilliantly and strategic expansion is in place. FB expects surge in investment demand to lead to 20% plus growth in FY15.

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Orient Refractories - Buy; Target Price: Rs110; Key ‘flow control’ of RHI; Centrum

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Rating: Buy; Target Price: Rs110; CMP: Rs87.2; Upside: 26.1%



Key ‘flow control’ of RHI; initiate with Buy



We initiate coverage on Orient Refractories Ltd (ORL) with a Buy
rating on the back of superior earnings trajectory vis-a-vis peers,
industry leading ROIC, robust margins, brownfield expansion scope and
parentage from RHI - second largest refractory producer globally.
RHI’s revenue growth track record in India has been very strong (~20%
CAGR) and we expect clearly articulated strategy of RHI for ORL to i)
help diversify revenues and expand client base across domestic and
export markets, ii) lead to new product developments through
technology sharing and iii) allow further leverage of low capital and
operational cost base of ORL for pursuing accelerated growth.

$ Low capital and operational costs key strengths: ORL boasts of
higher turnover ratios (more than double of peers’) on the back of
very low capital costs and its leadership position in ‘tundish’
management of steel flow control segment with a niche in servicing
mini steel mills. An existing plant of ORL spread over 27 acres with a
dedicated R&D centre still has ~50% free land which ensures
continuation of growth at a low capex. In addition, ORL’s gross
margins are 300-600bps higher than that of domestic peers due to much
larger proportion of raw material procurement from local sources.

$ Focus of RHI and change in sales mix to add glow to revenue growth:
RHI, in its clearly articulated strategy for ORL intends to i) double
ORL’s revenues by 2020 and increase exports to emerging markets, ii)
share R&D to leverage the low cost base of ORL and iii) realise
complementary benefits from ORL for RHI’s existing business in India.
ORL’s sales mix is likely to change with new revenue from sales to RHI
group starting FY15E and growth in exports using RHI’s sales network.
This will diversify ORL’s revenues, which have largely been dependent
on mini steel mills with ~70% share in domestic manufactured sales. We
expect overall revenue CAGR of 17.1% during FY14-17E led by robust
volumes in the shaped segment.

$ Superior return ratios led by operating leverage; free cash flow
improving: ORL surpasses peers in terms of return ratios both at
global and domestic levels due to low capital costs, locally developed
R&D and strong margins in its product segment of shaped refractories.
While ROE for ORL is 30%+, for other domestic peers it is below 20%.
In terms of ROIC, ORL stands out with post tax ROIC of 40%+ while
domestic peers have ROIC in the range of 20-25%. We see free cash flow
yield improving to ~4.5% and free cash flow/EBITDA going up to 0.4x by
FY17E.

$ Valuation and risks – deserves premium: We expect earnings momentum
to continue with an EBITDA/PAT CAGR of 15.2%/15.9% during FY14-17E led
by volume growth from expansions, new revenue streams and sales
support from RHI. Despite rerating in the past 9-12 months, we believe
that it deserves premium to peers on fundamentals (based on our
calculations of ‘justified P/BV’ – see page 14) as well as the
exciting prospects on account of clear focus of its parent, RHI. We
value the stock at an average of 18x P/E and 9x EV/EBITDA on FY17E
earnings to arrive at a TP of Rs110. Key risks are sharp drop in
margins due to change in revenue mix and extreme stress in the steel
industry in India.



Thanks & Regards

--


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Investor Categorywise Turnover - 29 Sep 14

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FII / FPI trading activity on BSE, NSE & MCX-SX in Capital Market Segment Cr. )
CategoryDateBuy ValueSale ValueNet Value
FII/FPI29/09/20142,643.782,493.68150.10

DII trading activity on BSE, NSE & MCX-SX in Capital Market Segment Cr. )
CategoryDateBuy ValueSale ValueNet Value
DII29/09/20141,323.361,088.84234.52


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NSE, Block deals, 29-Sep-2014

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DateSymbolSecurity NameClient NameBuy / SellQuantity TradedTrade Price /
Wght. Avg.
Price

29-Sep-2014GAMMNINFRAGammon Infrastructure ProGAMMON INDIA LIMITEDSELL5280,00,00013.50-
29-Sep-2014GAMMNINFRAGammon Infrastructure ProGAMMON POWER LIMITEDBUY5280,00,00013.50-
29-Sep-2014PFRLPantaloon Fash & Ret LtdFUTURE CORPORATE RESOURCES LIMITEDSELL41,75,000135.00-
29-Sep-2014PFRLPantaloon Fash & Ret LtdINDIGOLD TRADE AND SERVICES LIMITEDBUY41,75,000135.00-


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NSE, Bulk deals, 29-Sep-2014

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DateSymbolSecurity NameClient NameBuy / SellQuantity TradedTrade Price /
Wght. Avg.
Price

29-Sep-2014GAMMNINFRAGammon Infrastructure ProGAMMON INDIA LIMITEDSELL5280,00,00013.50-
29-Sep-2014GAMMNINFRAGammon Infrastructure ProGAMMON POWER LIMITEDBUY5280,00,00013.50-
29-Sep-2014PFRLPantaloon Fash & Ret LtdFUTURE CORPORATE RESOURCES LIMITEDSELL41,75,000135.00-
29-Sep-2014PFRLPantaloon Fash & Ret LtdINDIGOLD TRADE AND SERVICES LIMITEDBUY43,10,491134.98-
29-Sep-2014PRITHVIPrithvi Information SolutCHANDIKA INFRASTRUCTURE PVT LTDBUY2,56,0004.47-
29-Sep-2014PRITHVIPrithvi Information SolutHARSHITH ENTERPRISES PRIVATE LIMITEDSELL4,20,0004.46-
29-Sep-2014PRITHVIPrithvi Information SolutPRADIP KUMAR SHAHBUY1,09,0004.50-
29-Sep-2014PRITHVIPrithvi Information SolutTAMMALI KUMAR PAVANSELL1,04,1794.49-
29-Sep-2014PRITHVIPrithvi Information SolutVARAPRADA DISTRIBUTORS PVT LTDBUY1,50,0004.45-
29-Sep-2014SABERORGANSabero Organics GujaratVEMF A LPSELL3,39,649178.01-
29-Sep-2014VKSPLVKS Projects LimitedGAJANAN ENTERPRISESBUY40,00,0000.30-
29-Sep-2014VKSPLVKS Projects LimitedGAJANAN ENTERPRISESSELL10.30-
29-Sep-2014VKSPLVKS Projects LimitedGREEN VENTURE SECURITIES MANAGEMENT PVT LTDSELL117,72,6490.31-
29-Sep-2014ZANDUREALTZandu Realty LimitedN.K. SECURITIESBUY7,2952231.30-
29-Sep-2014ZANDUREALTZandu Realty LimitedN.K. SECURITIESSELL7,2952232.50-

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