Stock Idea: Apollo Tyres

This leading tyre manufacturing company posted a very good set of results for the second quarter ended 30th September 2009. On a consolidated basis, net sales rose 62.12% at Rs.2046.19 crore and net profit was up by 755.33% on YoY at Rs.129.2 4crore.
On a standalone basis, net profit shot up by an unbelievable1209% to Rs 102.1 crore versus Rs.7.8 crore on a YoY. Comparing on a YOY is not all that a true representation of the picture as last September, the recession had set in and hence the base effect would be lower. On a QoQ, net sales was up 3% and net profit was up 8%. So in the true sense, the company has maintained its performance.
Growth in volumes and growth in the passenger radial car helped boost the performance. The recovery in the auto sector is truly being reflected in the performance of Apollo. Its market share in radial tyres currently stands at 25%.
The company, after deferring its plan to set up a greenfield project at Hungary, instead acquired a Dutch company and that gives the company a ready market to tap in East Europe. It is now working full throttle in setting up a Greenfield project in Chennai and this is expected to get on stream by December 09’.
The going is expected to get better. Though raw material costs are expected to go up in the coming months, the company is hopeful of offsetting the rise in cost by rising volumes. Its main raw material is natural rubber and it is currently at an all time high of around Rs 108-110. To offset this, it has also hiked prices by 3% in October.
The company, over the next 3-4 years hopes to make a name for itself amongst the top 10 global tyre companies of the world.

Source: Internet (www.premiuminvestments.in by S P Tulsian)

Intraday Trading Calls for 30th November

Indian Stock Market may open positive and a good positive closing expected today.

Today's Intraday Stock Tips / Trading Calls (Keep strict Stop Loss for Each Trade):

SCRIP NAME	TRIGGER	PRICE	TARGET 1	TARGET 2
ATLANTA	Buy Above	157.20	162.45	168.00
	Sell Below	154.35	150.10	145.00
CAIRN INDIA	Buy Above	269.25	273.40	278.00
	Sell Below	267.40	263.10	260.00
APTECH	Buy Above	168.60	174.35	180.00
	Sell Below	165.35	161.40	156.00
RENUKA SUGAR	Buy Above	218.75	224.65	230.00
	Sell Below	215.05	210.35	204.00
THINKSOFT	Buy Above	321.10	328.70	336.00
	Sell Below	316.45	310.05	302.00
ADSL	Buy Above	209.20	214.55	220.00
	Sell Below	206.45	201.55	195.00
KPIT CUMMINS	Buy Above	117.60	121.40	125.00
	Sell Below	115.40	111.65	107.00

Short to Medium Term Delivery Buy:

Buy ATLANTA LTD. (532759) CMP Rs. 155/- Short to Med. Term Target Rs. 200/- & Rs. 235/-.

GOOD LUCK

Stock Idea: Omnitech Infosolutions Ltd

Omnitech Infosolutions Ltd (Rs 120)
(BSE Code – 532882, NSE Code - OMNITECH)
(P/E- 4.5, Market Cap - Rs157 cr, Equity - Rs13.13 cr)
Omnitech Infosolutions (OIS), incorporated in 1990 by engineering graduates, is a niche player offering business availability services including infrastructure management, application management and software testing; business continuity services comprising disaster recovery management and disaster recovery consulting and auditing; offshore-centre services using onsite, offshore and built-operate-transfer (BOT) models; systems integration solutions, and framework solutions and products such as Omni Manage IT, Omni Audit, Omni Transport and Omni Monitor. OIS has 150 active customers currently. Some of them include Kotak group of companies, Birla Sunlife, Philips, Grindwell Norton, Accenture, Patni etc. OIS derives 53% of its revenues from top 10 customers. About 66% of OIS’s business comes from repeat customers.
In its two joint ventures (JV) in Bahrain, OIS holds 24.5% in DRC Gulf LLC and 32.75% in Omnitech Gulf Technologies WLL. DRC Gulf provides data-storage-centre services among other things. Through Omnitech TSB Company, in which it holds a 67% stake, Omnitech has entered into a JV with Sanwell Company from Japan for IT consultancy, software development for embedded systems, infrastructure management with remote management services and performance management services (testing) for telecom, banking, financial services and manufacturing. Looking out for acquisition of about US$ 10 million -15 million in the infrastructure management services (IMS) space, Omnitech has shortlisted a few companies in the US and UK.
For FY09, Omnitech reported 30% rise in net sales to Rs 171.42 cr. and bottom line stood at Rs 33.09 cr.(up 30%) cr. On a equity of 13.13 cr. (Promoter stake- 54.45%), the EPS stood at Rs 25.2 and the dividend declared was 12%. For the half year ended Sept. 2009, OIS has posted net profit of Rs 16.62 cr. (down 7%) on net sales of Rs 93.75 cr.(up 7%). OIS’s order book position stands at Rs 115-120 cr. and for the financial year 2009-10 it expects to grow by 15-20% organically.
OIS is establishing itself as a dominant player in the infrastructure management, disaster recovery and business continuity space. OIS's infrastructure management and application management coupled with performance management and software testing services which have better margins could drive its revenues and profitability going forward. OIS is well placed to tap the opportunities in the IT services and product domain with both organic and inorganic growth in infrastructure management and software testing services going ahead. At current market price of Rs 120, Omnitech stock trades at 4.7 times FY09 earnings(Rs 25.2) and at 4.4 times expected FY10E earnings(Rs 27). Investors can start accumulating the stock at current levels and add more on declines for decent returns of 40%-50% over the next 6-8 months.

Source: Internet (Valuenotes by Sanjay Chhabria)

Stock Idea: Nagarjuna Agrichem Ltd

Nagarjuna Agrichem Ltd (Rs 228)
(BSE Code - 524709)
(P/E - 5.7, Equity - Rs14.9 cr, Promoter’s stake - 78.29%, Market Cap - Rs340 cr)
Nagarjuna Agrichem Ltd (NAC), a co. belonging to the Hyderabad based Nagarjuna group, was established in 1994 for producing Monocrotophos Technical. NACL has since grown substantially and now manufactures a comprehensive range of pesticide technical's, formulations and custom manufactured fine chemicals. NAC has tie-ups with large Indian Agrochemical Majors and MNC’s for the domestic and export markets. NAC has an impressive range of branded formulations in the categories of Insecticides, Fungicides and Herbicides. NAC has one of the largest dealer network spread across India, with marketing and sales offices in addition to an extensive Warehousing & Logistics Infrastructure to handle operations in 20 Indian states. NAC has been continuously expanding its production capacities and reporting better results. On a equity of 14.9 cr. the public holding in the company is 15.48%, and that of the promoters is 78.29%.
The export market offers good growth opportunities to the NAC and it has been strengthening its presence in the overseas market by exploring new markets, promoting existing and new products and protecting its existing product registrations and making investment in new product registrations. NAC’s market spans the entire Indian subcontinent as well as Europe, the Middle East, Japan, USA, Australia and Africa. Low cost production of the Indian agrochemical manufacturers helps them to win CRAMS business from the global agrochemical majors. The extremely low per hectare domestic consumption and thrust on increasing output per hectare promise healthy domestic growth going forward. The per capita consumption of crop protection products in India is one of the lowest in the world
NAC’s sales have been growing by an average 37% over the past five years, while its operating profit rose 35% over the same period. Margins have averaged a decent 15% over these five years. Most importantly, Nagarjuna is a very efficient user of capital. Its RoE has averaged 41.27% over the past three years. For the year ended March 2009, NAC reported 46% growth is net sales to Rs 605.3 cr., whereas net profit grew 91% to Rs 49.2 cr., despite 120% rise in income tax to 31 cr. from 14 cr. NAC improved its operating margins from 17% to 19%. On a equity of 14.9 cr, the EPS stood at Rs 33 and the dividend declared was 50%. The company improved its OPM from 17% to 19.5%. For the half year ended Sept. 2009, NAC has posted 42% rise in net profit to Rs 28.5 cr. on net sales of Rs 338 cr.(up 12%). Interim dividend of 20% has also been declared.
Going forward, emerging global imperative of productivity enhancement will revitalize the crop protection industry. The crop segment that NACL is targeting, is its key crop segment- rice, cotton and in the tea plantation. NAC is a company from the farm sector which combines a high RoE (41.27%) and reasonably low current valuations as compared to its peers such as Rallis India, Bayer Cropscience etc. At current levels the stock trades at about 6.9 times FY09 earnings and at about 5.7 times FY10E earnings (Rs 40) and has a market cap of about 340 cr.. The stock is certainly cheaply valued with its market-cap at just 2.9 times its FY09 operating profit of Rs 117 cr. Investors can start accumulating the stock at current levels and add more on declines for decent returns of 40%-50% over the next 6-8 months.
Source: Internet (Valuenotes by Sanjay Chhabria)

Stock Idea: DIC India Ltd.

DIC India Ltd (Rs 180)
(BSE Code - 500089, NSE Code - DICIND)
(P/E- 8, Market Cap - Rs165 cr, Net sales - Rs515 cr, Equity - Rs9.17 cr)
DIC India(DIC), formerly known as Coates of India, is a 71.75% subsidiary of DIC Asia Pacific Pte Ltd, Singapore, which in turn is a wholly-owned subsidiary of US $ 9 billion Dainippon Inks and Chemicals (DIC) of Japan, world leader (40% global market share) in printing inks, organic pigments and thermosetting resins. The DIC group, with its subsidiary Sun Chemical, is the largest ink company in the world. Around US$ 5 billion (Rs 22,000 crore) of the group’s revenue of more than US$ 9 billion comes from ink-related businesses. DIC is the world’s largest supplier of inks, organic pigments, varnishes, coatings, resins, and toners and ink jet inks. DIC India enjoys strong market position (33% market share) in Rs. 1,500 cr. printing and liquid ink market. There are three segments in printing ink, viz., Publishing inks (covers newspapers, magazines & books), Packaging inks (as covers FMCG sector, has tremendous potential to grow) and high quality emerging segment – Commercial printing inks (covers sales literature, leaflets, brochures, tourist literature, catalogues, etc). Company is the market leader in high volume low value publishing inks segment.
The fortunes of the printing ink industry are linked to the economy, particularly the publishing and packaging sectors. Despite the high GDP growth in the recent past, the growth of the packaging sector in India was impacted by the slow growth of the FMCG sector, restricting the top line growth of the printing ink industry. However, the fortunes of the FMCG industry have revived. This will directly benefit DIC India. Moreover, the publishing sector is on the rebound. The increasing urbanisation and literacy levels as well as new launches and higher media spend are likely to result in comfortable growth rates for the publishing industry. With more foreign publication houses setting up their outfits in India, the publication sector is poised for major growth. All this will benefit DIC India.
DIC India’s focus remains on maintaining strong position as a leading supplier to the high technology and quality end of the market, where new presses with full automation require rapid drying and coating with quick wash-ups and make-readies. In India, the company also manufactures and distributes Varn chemicals and blankets from Day International. DIC India will have full access to the total portfolio of products and technology available with DIC and Sun Chemical. Therefore, the value from DIC and Sun Chemical will be added to its brands and products. The beneficial impact of this is expected to result in better range and quality of DIC India’s products. The parent company has launched several new products in the recent past, to which DIC India is expected to get access. For the nine months ended Sept. 2009, DIC on standalone basis has posted net profit of Rs 14.58 cr. on net sales of Rs 340 cr.. On a consolidated basis, the revenue grew 20.5% to Rs 515.1 cr. in CY 2008 (ended December 2008). The consolidated net profit stood at Rs 18.07 cr.. On a equity of Rs 9.17 cr. consolidated EPS stood at Rs 19.7 and the dividend declared was 35%. The Book value per share stood at Rs 196. The company’s market cap is just Rs 165 cr. against CY08 net sales of Rs 515 cr.
DIC India has changed its business focus towards highly profitable publishing ink and commercial printing ink (growing at 12-15%), while simultaneously cutting down on sales of low margin packaging ink segment. Changed business composition and new product launches will be driving volume growth. Considering good industry prospects, low valuations, DIC India’s strong market positioning and technological & marketing support from DIC, Japan, company is poised for good times ahead. At current market price of Rs 180, DIC stock trades at 9.1 times consolidated CY08 earnings(Rs 19.7) and at 8 times expected consolidated CY09 earnings(Rs 22.5). Investors can start accumulating the stock at current levels and add more on declines for decent returns of 35%-40% over the next 6-8 months.
Source: Internet (Valuenotes by Sanjay Chhabria)

Stock Idea: Jaiprakash Associates Ltd

Jaiprakash Associates Ltd— BUY—220—INR
Sector — Construction (others)
Regd.Off.— S. K. Road, Greater Noida City, Lucknow, U.P. -201306
Listed — NSE, BSE.
Company overview—
Jaypee group is a well-diversified infrastructural industrial group of India that commenced its operations in 1972 as a partnership firm then known as Jaiprakash Associates. Three decades later with growth and diversification the group is now engaged in the businesses of Engineering and Construction, Cement, Private Hydropower, Expressways and Highways, Hospitality, Golf Resorts and Information Technology. With a professional management team and a competent technical cadre the group employs a total workforce of over 25000. Jaiprakash Associates Limited the flagship company of the Jaypee Group is leader in the construction of multi-purpose river valley and hydropower projects and has been involved in construction of major engineering projects for the last three decades. Jaiprakash Associates Limited the groups construction arm is the only company to have four modern ferrule workshops one each in Tala, Baglihar, Chamera and Vishnuprayag sites.
Products & Services—
Company is involved in the construction of multi-purpose river valley and hydropower projects and has been involved in construction of major engineering projects for the last 37 years, including complex hydro power / river valley projects, Expressways and Real Estate Development, etc. Company is involved into Design and engineering of works, Controlled earth / rock fill, Concrete manufacture and placement, Fabrication and erection of penstock liners and steel structures, Hydro-Mechanical equipment design, procurement and erection, Expressway Construction, Real Estate Development.
Company has completed several projects in India and abroad as an Engineering Procurement and Construction (EPC) contractor and possesses necessary experience and expertise to carry out such works in a time schedule. Company has acquired ample tunneling experience in the young Himalayan mountains on various projects inter alia, Dul Hasti (Jammu & Kashmir), Baspa-II (Himachal Pradesh), Vishnuprayag (Uttaranchal) and Tala (Bhutan) Hydroelectric Projects under complex conditions including extreme weather conditions, adverse geological conditions. It is simultaneously constructing nine concrete dams, one barrage and twelve powerhouses with a total generation capacity of over 8190 MW. Company owns a huge fleet of modern construction machinery which include ropeways, electronically controlled parallel cable way system, tower cranes, rotec conveyer system, tunnel boring machine, hydraulic jumbos, modern computerized concrete batch plants, ice making machines, in addition to a large complement of earthmoving machinery. Highly qualified professionals and competent technical persons supported by skilled operators and supervisors, Technicians, Skilled and Unskilled Workers form the backbone of the company. Company has been assigned "CR 1" grade by ICRA Ltd, indicating Very Strong Contract Execution Capacity with best prospects of timely completion of projects without cost overruns, etc.
Recent development—
Jaiprakash Associates has raised Rs 10 billion through issue of non-convertible debentures (NCDs) to Standard Chartered India. Company has also decided to raise low cost funds to the extent of Rs. 5 billion by way of private placement of unsecured rated commercial papers. It has also decided to disinvest / offer for sale upon 60 million equity shares out of 1.21 billion equity shares of Rs 10 each held by the company in Jaypee Infratech, a subsidiary of Jaiprakash Associates.
Valuation—
At current market price, stock is trading at 9.74 P/E multiple of its FY2010 estimated earnings. We recommend investors to buy “Jaiprakash Associates Limited” with medium to long-term investment Horizon.
Source: Internet (Valuenotes by Abhishek Jain)

Intraday Trading Calls for 27th November

Indian Stock Market may open negaive but remains very volatile and a negative closing expected.

Today's Intraday Stock Tips / Trading Calls (Keep strict Stop Loss for Each Trade):

SCRIP NAME	TRIGGER	PRICE	TARGET 1	TARGET 2
BRFL	Buy Above	190.75	194.50	199.00
	Sell Below	189.25	185.45	181.00
IDFC	Buy Above	167.25	170.35	174.00
	Sell Below	165.15	162.40	158.00
APTECH	Buy Above	170.10	174.35	192.00
	Sell Below	168.40	164.20	160.00
GODREJ INDUSTRIES	Buy Above	206.50	211.10	216.00
	Sell Below	203.70	200.10	195.00
THINK SOFT	Buy Above	304.70	311.25	318.00
	Sell Below	301.05	295.45	290.00
CIPLA	Buy Above	319.20	325.10	330.00
	Sell Below	315.70	310.40	304.00
KPIT CUMMINS	Buy Above	114.65	118.75	122.00
	Sell Below	112.45	109.20	105.00

GOOD LUCK

Stock Idea: Jain Irrigation

This stock, typically comes to the fore only during the Budget. With the Govt always expected to give sops to the agriculture sector, this is one stock which has always been a big beneficiary. But looks like the poor monsoon and the recession in international markets have played on the sequential numbers, which are clearly under pressure.
Its hi-tech agro input products, which includes micro irrigation systems, PVC piping products, tissue culture plants and agri R&D, on a QOQ has shown a 15% decline in sales. Consequently, EBIDTA on the same has come down from 26% in current Q2 to 22%. Industrial products did well and probably helped shore the margins. Revenue of IP was up 31% and EBIDTA margin was up by 1% at 21%. Overall net sales, has shown a sequential drop of 1.8%.
Apart from fall in revenue, operating expenses rose on a QoQ by 2.56%. So these two factors together pulled down the numbers. Net profit was down 23% at Rs.42.56 crore.
Drip irrigation is actually the bets method to combat a poor monsoon and with more and more states realising this, it would only go to increase business for Jain. Infact, the company which has been concentrating more in southern and western India but it is now making plans to enter central and north India. Apart from concentrating on domestic demand, the company is also looking at exports. It has invested $10 million to set up a new plant to make irrigation systems and plastic pipes in Turkey, production at which will begin this month. It is also planning to expand into Israel and U.S but no real investments for the same have been made yet.
It currently has an order book of Rs.900 crore of which majority is for micro-irrigation. It is also planning to tap Asian and Middle-east markets for selling processed food, where it already sells micro-irrigation.
Its growth in FY10 is expected to be led by micro-irrigation division which, it expects to grow by 40% and next driver being food processing, which it hopes would grow by 20-25%.
Companies which have an agri focus would do well and especially Jain. Stay invested.

Source: Internet (www.premiuminvestments.in by S P Tulsian)

Intraday Trading Calls for 26th November

Indian Stock Market may open negaive but remains very volatile and a flat to positive closing expected.

Today's Intraday Stock Tips / Trading Calls (Keep strict Stop Loss for Each Trade):

SCRIP NAME	TRIGGER	PRICE	TARGET 1	TARGET 2
AMBUJA CEMENT	Buy Above	92.65	95.20	98.00
	Sell Below	91.40	89.45	86.00
IDFC	Buy Above	170.75	173.65	177.00
	Sell Below	169.35	165.55	161.00
AHLUWALIYA CONTRACT	Buy Above	180.10	185.05	192.00
	Sell Below	177.40	172.35	168.00
GODREJ INDUSTRIES	Buy Above	206.50	211.10	216.00
	Sell Below	204.15	200.10	195.00
BAJAJ HIND	Buy Above	224.25	229.65	234.00
	Sell Below	221.05	216.35	212.00
GMDC	Buy Above	131.75	135.40	140.00
	Sell Below	128.70	124.35	120.00
COMPACT DISC	Buy Above	67.70	71.20	75.00
	Sell Below	66.45	63.20	60.00

GOOD LUCK

Stock Idea: Andhra Bank

Company snapshot
Andhra Bank, founded by the freedom fighter Dr. Bhogaraju Pattabhi Sitaramayya, commenced business on 28 November 1923. The bank is headquartered in Hyderabad and has a concentrated network in the state of Andhra Pradesh with major proportion of its advances being generated from the branches located in the state.
The Bank has posted whopping qtrly result during the qtr ending Sept’09. The return on Asset of bank stood at 1.54% as compare to 1.12 %( Q2FY09) & 1.44 %( Q1FY10).The bank has also shown rise in Return on Equity as it stood at 30.05% as compare to 19.89%(YoY) & 25.60%(QoQ).The Provision coverage ratio of bank stood at 81.12% as compare to 76.65 %( Q2FY09) &
72.26 %( Q1FY10) The cost ratios of the bank depicted the firm trend as cost of funds shown drop to 5.88% from 6.21% (YoY) & 6.13%(QoQ)The cost to income ratio of bank has also shown great improvement to 39.45% from 50.27%(YoY) and 48.78% (QoQ).The Net Interest Margin of bank increased to 2.90% form 2.50% in qtr ended June’2009.The growth was mainly attributed
to drop in cost of funds and higher credit to deposit ratio during the qtr ended Sept’09.
Business Details
Andhra Bank, founded by the freedom fighter Dr. Bhogaraju Pattabhi Sitaramayya, commenced business on 28 November 1923. The bank is headquartered in Hyderabad and has a concentrated network in the state of Andhra Pradesh with major proportion of its advances being generated from the branches located in the state. Andhra Bank is a fast growing public sector bank in the country with a total business size of Rs.110460 crore as on 30 Sept 2009. It renders services through 2421 delivery channels consisting of 1536 branches, 798 ATMs spread over 22 states and 2 Union Territories. The bank played an important role towards developing and expanding self help groups (SHGs). It continued to focus on agriculture and allied activities ensuring a steady flow of credit to this sector. Finance to Agricultural sector by bank stood at Rs 7482 Crores .All Branches of the Bank are under CBS. Bank has also launched Online Tax payment (eTax) along with Internet Banking (Retail as well as Corporate). Bank also provides facilities like SMS Alerts over Mobile Phones for certain type of transactions and account balances are made available to clientele registered for this facility.
As on 30th September 2009, 7.53 Lakh customers got registered for this facility. Bank is also providing its customers facility to request for account information through SMS-pull facility. Customer can seek balance enquiry, mini-statement, cheque status, etc through this facility. Bank also offers customers the facility to subscribe to Initial Public Offers of corporate using Applications Supported by Blocked Amount Scheme. Bank's Internet Banking Customers can participate in Online Trading via M/s Religare. Bank has also launched a web based fast forex remittance facility (AB Speedway) for the benefit of NRIs of U.S.A .
Industry Outlook

Indian banking industry faced many uncertainties during 2008-09 in the face of tight market liquidity in the global financial markets. The RBI's prompt and relevant measures ensured adequate domestic and foreign liquidity to Indian banking industry so that the flow of credit to productive sectors would not suffer much. Yet, on account of the severe global economic slowdown and its spillover effects on India, growth of bank credit to commercial sector decelerated in 2008-09. Moreover, expansion in net foreign exchange assets of the Indian banking industry moderated to a large extent. However, the Indian banks, in general, posted healthy financial results during 2008-09 compared to their global peers despite challenging economic conditions. The outlook for Indian banking industry remains positive in 2009-10 on the backdrop of its stricter prudential regulation by the RBI, sound financial indicators and stable political regime.

Investment Rationale
Bank has recently received R2 approval for the insurance Joint Venture with Legal & General and Bank of Baroda. Also, Bank has signed MOU for launching a banking subsidiary in Malaysia jointly with Bank of Baroda and Indian Overseas Bank. This will help the bank in expanding its presence in Malaysia. Bank has tied up with Piaggio Vehicles aimed at offering a highly competitive retail financing scheme that ensure low interest rates to the customers which will in turn provide boost to the credit offtake of bank. Also, the new corporate slogan ‘Andhra Bank….for all your needs’ is introduced during the first quarter reflecting good recall and visual value. Bank has opened 104 branches during the Half year taking the total number of branches to 1536. With 49 ECs, 38 Satellite Offices and 798 ATMs the total number of delivery channels of banks has increased to 2421. Also, number of ATMs of the Bank increased to 798 as on 30-09-2009. Besides Banks owned ATMs, the ATM/ Debit Cards issued by Bank are accepted on NFS Network, VISA Network and under bilateral arrangements numbering in all 45000 ATMs Number of ATM/Debit Cards issued by the bank increased from 35.4 Lakhs as on 31-03-2009 to 45.52 Lakhs as on 30-09-2009. For remote branch connectivity for CBS, Bank has deployed 251 VSATs. Retail credit registered robust growth of 34.73% over previous year and reached Rs. 7149 Crs as at the end of September-09 Also, lending to MSME sector has gone up by 52.19% and reached Rs. 6835 Crs. All other advances including Corporate credit moved up to Rs. 25645 Cr from Rs. 19800 Cr, year on year. Bank aims to attain a business mix of Rs.1,30,000 Crs by the end of March 2010 at a growth rate of 30% and Rs.1,50,000 Crs by September 2010. Bank is also targeting to reach CASA percentage of 33% of total deposits by March2010. Bank shall be rolling out the insurance products of its own Joint Venture for sale by July 2010. Banking subsidiary in Malaysia jointly with BoB and IOB expected to function next year.
Valuation
At the current price of Rs 117, the Bank is trading at 6.01times to its TTM eps of Rs 19.45. The bank has posted whopping results for qtr ended Sept’09. With the plans of strengthening its network and customer base while focusing on further enhancement in the customer service through innovative products and services, bank will continue to leverage technology for an all-round performance. Looking at the strong financial performance, the bank looks undervalued at the current price of Rs 117. Hence we recommend investors to “BUY” the stock with the price target of Rs 155 in medium term which is 32% above from the current price of Rs 117.

Source: Internet (Valuenotes by Hem Securities)

Intraday Trading Calls for 25th November

Indian Stock Market may open positive and remains good positive for the day today.

Today's Intraday Stock Tips / Trading Calls (Keep strict Stop Loss for Each Trade):

SCRIP NAME	TRIGGER	PRICE	TARGET 1	TARGET 2
ICSA	Buy Above	172.25	176.35	180.00
	Sell Below	169.70	166.15	162.00
IDFC	Buy Above	168.75	172.05	176.00
	Sell Below	167.35	164.10	160.00
IGL	Buy Above	171.25	175.20	179.00
	Sell Below	169.40	165.35	161.00
GODREJ INDUSTRIES	Buy Above	208.25	213.55	220.00
	Sell Below	205.35	200.10	195.00
ROLTA INDIA	Buy Above	177.10	181.35	185.00
	Sell Below	175.10	171.45	167.00
GMDC	Buy Above	130.60	134.55	140.00
	Sell Below	127.35	122.70	118.00
COMPACT DISC	Buy Above	65.25	67.55	70.00
	Sell Below	64.35	62.10	60.00

GOOD LUCK

Stock Idea: Nagarjuna Construction Co. Ltd.

Nagarjuna Construction Co. Ltd— BUY—166—INR
Sector — Construction (Infrastructure)
Regd.Off.— 41, Nagarjuna Hills, Hyderabad, A.P.-500 082
Listed — NSE, BSE.
Company Overview—
Nagarjuna Construction Company was incorporated in 1978. The company has consolidated its presence in high growth infrastructure sector such as Roads, Water supply, and Electrical Transmission Systems. Company went public in 1992 and is engaged in industrial construction, housing development projects, plant and non-plant construction for nuclear projects, construction of hospitals, construction of roads and bridges including national highways, fabrication, erection of structural steel works etc. Apart from the conventional construction methods, the company adopts the NBS Cellular System, which was developed in collaboration with Byyging Uddheman AB of Sweden and NCC Pre Fab System, which was developed in house. Strategic tie-ups with leading multinational companies keep NCC abreast with latest developments in the field of construction and also put it on par with international companies in terms of standards of performance and quality of projects.
Products & Services—
Company is involved into construction of Industrial & Commercial buildings, Roads, Bridges & Flyovers, Water Supply & Environmental projects, Housing, Power transmission lines, Real Estate development, Irrigation and Hydropower Projects, Social amenities etc. Company has presence & capabilities in all area of construction activities. Company has ISO 9001:2000 certifications.
Industrial Structures & Buildings— Company provides long lasting buildings and industrial structures at optimum cost and in minimal time. Construction of large factory and workshop structures has been made speedier and more economical by the use of modern construction methods including folded plate and shell roofs, precast and prestressed roof elements etc. The largest Cardiac hospital in Asia; a record seven month turnaround time for a turnkey Airport project; the largest single concrete slab in Asia, Company has notched up many firsts to its credit.
Transportation— Indian Government is actively building world-class infrastructure facilities in the country, to place it on par with developed economies elsewhere in the world. High density corridors have been identified and the exercise of strengthening and four laning of highways has already been started. Company has been chosen to execute highways, bridges, flyovers and road projects all over the country. The carriageway of a ring road, Bangalore; the construction of an international quality six lane highway in Samalkha, Haryana; the Kalina-vakola junction flyover, Mumbai; the Grade separator at Bangalore; the Subway and Flyover at Latur, stand for company's expertise in infrastructure projects.
Water & Environment— Company executed major water supply projects, drainage schemes, construction of water and sewage treatment plants, turnkey solutions in water supply and UGD schemes, including survey and design. It has capabilities in the areas like - Turnkey implementation of rural, urban and industrial water supply projects from concept to commissioning, implementation of waste water collection systems for urban communities and industrial waste disposal, implementation of water treatment plants and sewage treatment plants from concept to commissioning.
Housing— Company has developed and deployed innovative operational methods including the highly effective: 1) NBS Cellular Construction System - It replaces all conventional methods of building construction by incorporating load bearing RCC shear walls. Roof slab is cast monolithic with RCC walls, eliminating construction joints and thus reducing the possibility of cracking and dampness, while enhancing the speed of construction manifold. 2) NCC Precast Construction System - It involves the manufacture of precast building components at site to achieve larger volumes of built-up area and greater quality levels in the least possible time.
Electricals— Company has expertise in the engineering and construction of EHV/HV sub-stations, transmissions and distribution lines, distribution system improvement projects, internal and external electrification of multi-storeyed utility buildings & commercial complexes and township electrification.
Property Development— Company has acquired properties for the construction and sale of independent houses, multi-storyed apartments and commercial complexes. The initial ventures have been undertaken in Bangalore/Mysore. Residential flats in JP Nagar, Bangalore; residential apartments at Mysore; Nagarjuna Elysses, deluxe apartments coming up in Richards Town, Bangalore; Nagarjuna Gardens, Sahakarnagar; Nagarjuna Spectrum, at Indiranagar, Bangalore; Nagarjuna Green Ridge at HSR layout, Nagarjuna Maple Heights at Marthahalli Bangalore, Nagarjuna Green Woods at Marathahalli Bangalore, Nagarjuna Pearl Bay at Kochi, Bangalore speak of NCC's determined efforts to excel in this area of construction.
Irrigation & Hydropower— with good presence in various sectors of the construction industry and looking to the emerging opportunities the company is working on various water supply and power plants projects around the country.
Recent developments—
In July 2009, Company has obtained three new orders aggregating Rs 7.76 billion. The first order valued at Rs 6 billion is secured from Employees State Insurance Corporation, New Delhi for construction of medical college and related works at Mandi, Himachal Pradesh to be completed over a period of 24 months. The second order is from general manager, Mezgon Dock, Mumbai for Mazdock Modernization Project works in Mumbai valued at Rs 1.36 billion to be completed over a period of 28 months and the third is from National Institute of Technology, Assam for construction of 500 capacity boy’s hostel valued at Rs 400 million to be completed over a period of 16 months.
In September 2009, Company has bagged two new orders aggregating Rs 4.81 billion. The first order valued at Rs 4.49 billion is obtained from Water Resource Department, Bihar for execution of restoration of Eastern Gandak Canal system to be completed over a period of 25 months. Meanwhile, the second order is from MRF, Chennai for construction of proposed radial tyre plant and easy tyre plant in Andhra Pradesh valued at Rs 320 million to be completed over a period of 6 months.
In Nov 2009, Company has secured five orders aggregating Rs 7.22 billion. The first order is valued at Rs 3.28 billion from Water Supply & Sewerage Board, Bangalore for water supply and sewerage project at West Bangalore to be completed over a period of 26 months. The second is order from Water Resources Department, Bihar for construction of Bituminous Road worth Rs 1.43 billion to be completed over a period of 24 months. The third, fourth and fifth orders are worth Rs 1 billion, Rs 910 million and Rs 600 million respectively.
Valuation—
At current market price, stock is trading at 19.57 P/E multiple of its FY2010 estimated earnings. We recommend investors to buy “Nagarjuna Construction Company Ltd” with medium to long-term investment horizon.
Source: Internet (Valuenotes by Abhishek Jain)

Stock Idea: Gammon India Ltd.

Gammon India Ltd— BUY—247—INR
Sector — Construction (Infrastructure)
Regd.Off.— Gammon House, Veer Savarkar Marg, Prabhadevi, Mumbai- 25
Listed — NSE, BSE.
Company Overview—
Gammon India was incorporated in 1922 and converted into a public Ltd. company on 31st April 1962. At the time of incorporation, the name of the Company was J.C. Gammon (Mumbai) Ltd. The first work carried out by Mr. J. C. Gammon was the construction of reinforced concrete pile foundations for Gateway of India. The name was changed to Gammon India Ltd. In 1975, Gammon Nirma Ltd. was incorporated as a subsidiary of the company. Another subsidiary Gammon Turnkeys Ltd. was formed. In 1977 company associated with Gammon Eastern Union Ltd., Hong Kong, which promoted Gammon Mideast Ltd. joint venture Company in Sharjah, United Arab Emirates. This joint venture company was incorporated to undertake construction and service contracts in the Middle East and elsewhere. A new joint venture company, Heitkamp Gammon Ltd., was being established with Gammon India Ltd., and Heitkamp Rohrbau GmbH, West Germany as the principal promoter shareholder. In 1989 R&D Division of the company undertook development of energy efficient GFRP bladed fans for ID Cooling towers and PP splash grid modular packing system for ND/ID covering towers, alternative packing systems etc. Company’s R & D division developed, fabricated and put into commission the headmast and tail-mast for 700 m span cable ropeway for Alamatti Dam as also 1500 mm dia. double-wall casing for executing the pile foundations for transmission towers at Tezpur for 60 m deep piles. It also designed and manufactured a special reverse circulation-pilling rig for 1500 mm diameter piles capable for depths upto 75 m. This division also developed special techniques for installation of 1500 mm diameter piles for a Bridge across Brahmaputra River at Jogighopa. Sikkim Hydro Power Ventures Ltd, a Special Purpose Vehicle Company was incorporated for the development of 60 MW Rangit - II Hydro Electric Power Project in Sikkim is a subsidiary of Gammon Infrastructure Projects Ltd.
Products & services—
Company has presence in all areas of civil construction. Company has executed many multifarious civil engineering works from Cotton Godowns, Bridges, flyovers, bitumen & concrete Roads, Marine Structures, Cooling Towers, Chimneys, Tunnels, Dams etc. Company has specialization in tunnel engineering, marine structures, bulk storage structures, energy projects & high-rise structures, ground engineering & environmental protection, hydraulic works & irrigation projects, industrial structures, public utility structures, transport engineering, bridge engineering. Gammon has established strong presence of pre-stressed concrete in India. Company can claim for the largest numbers of bridges and flyovers built in India.
Company provides start-to-end solutions like the Builders and contractors, reinforced concrete specialists, engineers, architects, surveyor’s estimators and designers. Gammon is the only Indian Construction Company to have been accredited with ISO 9001 certification for all fields of Civil Engineering Works including design, stands out as gateway for Technological and Engineering excellence in Civil Engineering fields. Company has dedicated and experienced team of planners, designers and construction engineers are ever ready to contribute their expertise together and turn vision into reality. Company made the longest river bridge in the world across the mighty Ganges at Patna. The tallest bridge in Asia, the longest span cantilever bridge in India across river Jadukata, the longest road bridge in India across the open sea and first cable stayed bridge in India. As builders to the nation, Gammon has made concrete contributions by designing and constructing bridges, ports, harbours, thermal and nuclear power stations, dams, high-rise structures, chemical and fertilizer complexes environmental structures, cross country water, oil and gas pipelines.
Valuation—
At current market price, stock is trading at 14.72 P/E multiple of its FY2011 estimated earnings par share. We recommend investors to buy “Gammon India” at every correction with medium to long-term investment prospective.
Source: Internet (Valuenotes by Abhishek Jain)